INVESTMENT ADVISER
Pacific Century Trust
a division of
Bank of Hawaii
Financial Plaza of the Pacific * P.O. Box 3170
Honolulu, Hawaii 96802
ADMINISTRATOR
Aquila Management Corporation
380 Madison Avenue, Suite 2300 * New York, New York 10017
BOARD OF TRUSTEES
Lacy B. Herrmann, Chairman
Vernon R. Alden
Arthur K. Carlson
William M. Cole
Thomas W. Courtney
Richard W. Gushman, II
Stanley W. Hong
Theodore T. Mason
Russell K. Okata
Douglas Philpotts
Oswald K. Stender
OFFICERS
Lacy B. Herrmann, President
Diana P. Herrmann, Senior Vice President
Charles E. Childs, III, Senior Vice President
Sherri Foster, Vice President
Rose F. Marotta, Chief Financial Officer
Richard F. West, Treasurer
Edward M.W. Hines, Secretary
DISTRIBUTOR
Aquila Distributors, Inc.
380 Madison Avenue, Suite 2300 * New York, New York 10017
TRANSFER AND SHAREHOLDER SERVICING AGENT
PFPC Inc.
400 Bellevue Parkway * Wilmington, Delaware 19809
CUSTODIAN
Bank One Trust Company, N.A.
100 East Broad Street * Columbus, Ohio 43271
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
345 Park Avenue * New York, New York 10154
Further information is contained in the Prospectus,
which must precede or accompany this report.
SEMI-ANNUAL
REPORT
SEPTEMBER 30, 1998
THE PACIFIC CAPITAL FUNDS
OF
CASH ASSETS TRUST
PACIFIC CAPITAL CASH ASSETS TRUST
PACIFIC CAPITAL TAX-FREE
CASH ASSETS TRUST
PACIFIC CAPITAL U.S. GOVERNMENT
SECURITIES CASH ASSETS TRUST
[Logo of The Pacific Capital Funds of Cash Assets Trust: Side view of a
standing lion above a thick rope]
A CASH MANAGEMENT
INVESTMENT
<PAGE>
[Logo of The Pacific Capital Funds of Cash Assets Trust: Side view of a
standing lion above a thick rope]
THE PACIFIC CAPITAL FUNDS
OF
CASH ASSETS TRUST
SEMI-ANNUAL REPORT
November 18, 1998
Dear Investor:
We are pleased to provide you with the Semi-Annual Report for The
Pacific Capital Funds of Cash Assets Trust for the six-month period ended
September 30, 1998.
The enclosed Semi-Annual Report includes the three series of Cash
Assets Trust (the "Trust"): Pacific Capital Cash Assets Trust, Pacific
Capital Tax-Free Cash Assets Trust and Pacific Capital U.S. Government
Securities Cash Assets Trust and its two classes of shares: Original Shares
and Service Shares.
ECONOMIC REVIEW
During the first half of the Trust's current fiscal year,
investors have witnessed much turbulence in the world's economies.
Discomforting news from around the world has caused substantial volatility
even in our own financial markets. Over the period, we have witnessed the
lingering aftershocks of the Asian economic crisis, the political and
economic turmoil occurring in Russia and the threat of currency devaluation
in Brazil. Here in the U.S., corporate earnings have been gradually slowing
as businesses realize that consumer demand hasn't kept pace with supply. As a
result, U.S. economic growth has begun to slow down.
Keeping a watchful eye on global events, the Federal Reserve
lowered the target on the Federal Funds rate - the rate member banks charge
each other for overnight loans - by 25 basis points on September 29th. Then,
just over two weeks later in a surprise move, the Fed again eased monetary
policy adding liquidity to the banking system with an additional 25 basis
point cut in the Fed Funds rate. Driven by the concern that the global
financial crisis was making it hard for companies to raise money, threatening
the long expansion in the U.S., the Fed cut interest rates 25 basis points
for the third time in seven weeks on November 17th. The Federal Funds rate
now stands at 4.75%, 75 basis points lower than it was one year ago. The rate
cut was intended to encourage more lending and to bolster the economy by
making it cheaper for businesses and consumers to borrow.
MANAGEMENT DISCUSSION
As previously mentioned, the Trust is comprised of three separate
portfolios - Pacific Capital Cash Assets Trust, Pacific Capital Tax-Free Cash
Assets Trust and Pacific Capital U.S. Government
<PAGE>
Securities Cash Assets Trust - each with two classes of shares. While each
fund adheres to their own investment objective, they all share a common
theme. That is, there is absolutely no substitute for quality in seeking to
maintain a high level of safety for the cash reserves entrusted to each fund.
Indeed, to adhere to this policy, Pacific Century Trust, the
Trust's Investment Adviser, has continuously acted with great prudence in
examining the creditworthiness and marketability of all issuers of securities
utilized in each funds' investment portfolio. Naturally, concern has also
been exercised to provide a sufficient measure of liquidity within each
portfolio so as to provide whatever ready cash needs exist for our
shareholders.
Looking forward, we are optimistic that each fund will continue
to provide investors attractive yields compared to alternative money market
investments. Undoubtedly, economic activity and its influence on Federal
Reserve monetary policy will have a direct effect on each fund's yield over
the course of the current fiscal year. As long as the Federal Reserve
maintains a gradual approach to regulating monetary policy, Pacific Century
Trust will continue to pursue yield advantages through alertness to market
opportunities by producing highly competitive returns without compromising
safety.
You can be assured that all those associated with the management
of The Pacific Capital Funds of Cash Assets Trust will consistently work in
the interest of your investment in the Trust. We very much value you as a
shareholder and appreciate the confidence you have shown in each of the
Trust's portfolios.
Sincerely,
/s/ Lacy B. Herrmann
Lacy B. Herrmann
President and Chairman
of the Board of Trustees
<PAGE>
PACIFIC CAPITAL
CASH ASSETS TRUST
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT U.S. GOVERNMENT AGENCY DISCOUNT NOTES (5.6%) VALUE
<C> <S> <C>
$ 13,532,000 Federal Home Loan Bank, 5.40%, 10/01/98 $ 13,532,000
20,000,000 Federal Home Loan Mortgage Corporation, 4.89%, 3/26/99 19,521,866
Total U.S. Government Agencies (cost $33,053,866) 33,053,866
COMMERCIAL PAPER (74.9%)
Automotive (4.2%)
25,000,000 Ford Motor Credit Co., 5.52%, 10/09/98 24,969,333
Banking/Credit Union (20.6%)
14,260,000 CEMEX 5.55%, 10/08/98 14,244,611
Letter of Credit-Credit Suisse First Boston
15,000,000 BankAmerica, 5.53%, 10/22/98 14,951,613
20,000,000 UBS Finance, 5.28%, 12/14/98 19,782,933
20,000,000 Unibanco, 5.48%, 12/29/98 19,729,044
Letter of Credit-Westdeutsche Landesbank Girozen
10,000,000 Formosa Plastics, 5.17%, 1/8/99 9,857,825
Letter of Credit-ABN Amro Bank NV
20,000,000 Garanti FD II, 5.40%, 2/3/99 19,625,000
Letter of Credit-Bayerische Vereinsbank
10,000,000 BankAmerica, 5.03%, 3/29/99 9,749,897
15,000,000 Banco Itau S.A., 5.13%, 6/07/99 14,480,213
Letter of Credit-Barclays Bank PLC
Total Banking/Credit Union 122,421,136
Brokerage (14.2%)
25,000,000 Salomon Smith Barney, 5.54%, 10/07/98 24,976,917
20,000,000 Merrill Lynch & Company, Inc., 5.40%, 11/13/98 19,871,000
20,000,000 Goldman Sachs, 5.47%, 1/25/99 19,647,489
20,000,000 Morgan Stanley Dean Witter, 5.10%, 3/05/99 19,560,833
Total Brokerage 84,056,239
Education (13.2%)
25,000,000 Harvard University, 5.48%, 10/15/98 24,946,722
28,500,000 Duke University, 5.53%, 10/19/98 28,421,198
14,300,000 Yale University, 5.42%, 11/05/98 14,224,647
5,000,000 Stanford University, 5.44%, 12/07/98 4,949,377
6,000,000 Stanford University, 5.46%, 01/15/99 5,903,540
Total Education 78,445,484
<PAGE>
Finance (15.2%)
25,000,000 American Express Credit Corp., 5.50%, 10/01/98 25,000,000
25,000,000 Associates First Capital, 5.49%, 4/02/98 24,946,625
16,200,000 National Rural Utilities, 5.48%, 11/05/98 16,113,690
25,000,000 General Electric Capital Corp., 4.78%, 6/25/99 24,113,708
Total Finance 90,174,023
Household Products (3.3%)
20,000,000 Procter and Gamble Co., 5.47%, 12/17/98 19,766,006
Oil & Gas (4.2%)
25,000,000 Texaco Inc., 5.51%, 10/06/98 24,980,869
Total Commercial Paper (cost $444,813,090) 444,813,090
CORPORATE NOTES (2.5%)
15,000,000 Providian Life and Health Insurance Company,
Variable Rate Note, 5.83%, 01/31/99 (1) 15,000,000
Total Corporate Notes (cost $15,000,000) 15,000,000
REPURCHASE AGREEMENTS (17.4%)
53,342,000 SBC Warburg, Dillon, Read Inc., 4.75%, due 10/01/98 53,342,000
(Proceeds of $53,349,038 to be received at maturity)
Collateral: $51,819,000 U.S.Treasury Notes 5.875% due
09/30/02
Collateral Market Value $54,408,840.
50,000,000 Dresdner Kleinwort Benson North America LLC, 4.75%, due 10/01/98 50,000,000
(Proceeds of $50,006,597 to be received at maturity)
Collateral: $49,700,000 U.S.Treasury Notes 5.625% due 12/31/99
Collateral Market Value $50,301,094.
Total Repurchase Agreements (cost $103,342,000) 103,342,000
Total Investments (cost $596,208,956*) 100.4% 596,208,956
Liabilities in excess of other assets (0.4) (2,564,686)
Net Assets 100.0% $593,644,270
<FN> * Cost for Federal tax purposes is identical. </FN>
<FN> (1) Illiquid security. The security is considered
illiquid because it may not be sold, and may be
redeemed only upon at least ninety days' notice
to the issuer. </FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
PACIFIC CAPITAL
TAX-FREE CASH ASSETS TRUST
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
RATING
FACE MOODY'S/
AMOUNT BONDS AND NOTES (99.4%) S&P VALUE
<C> <S> <C>
FLORIDA (1.8%)
Florida State Division Bd Finance Department
Bonds 1998, Revenue Bonds
$ 2,250,000 4.50%, 7/01/99 Aaa/AAA $ 2,265,062
Insurance: Financial Security Assurance, Inc.
GEORGIA (2.1%)
Georgia State, General Obligation Bonds 1996,
Series C
1,620,000 6.25%, 8/01/99 Aaa/AAA 1,654,234
Polk County, GA School District, General
Obligation Bonds 1997,
1,000,000 4.25%, 02/01/99 NR/AA- 1,002,293
Total Georgia 2,656,527
HAWAII (45.5%)
Hawaii State, General Obligation Bonds 1991
Series BV,
200,000 5.60%, 11/01/98 A1/A+ 200,297
Hawaii State, General Obligation Bonds 1993
Series CC,
1,550,000 4.40%, 02/01/99, Escrowed to Maturity A1/A+ 1,553,969
Hawaii State, General Obligation Bonds 1993
Series CD,
2,750,000 4.40%, 02/01/99 A1/A+ 2,757,752
Hawaii State, General Obligation Bonds 1993
Series CG,
500,000 4.25%, 07/01/99 Aaa/A+ 502,250
Hawaii State, General Obligation Bonds 1997
Series CQ,
3,000,000 4.25%, 10/01/98 Aaa/AAA 3,000,000
2,000,000 4.25%, 10/01/99 Aaa/AAA 2,016,726
Insurance: Financial Guaranty Insurance Co.
Hawaii State Airports System, Revenue Bonds,
Second Series,
3,000,000 6.10%, 7/01/99 Aaa/AAA 3,054,783
Insurance: Municipal Bond Insurance Agency
<PAGE>
Hawaii State Airports System, Revenue Bonds,
2,000,000 5.10%, 7/01/99 Aaa/AAA 2,024,273
Insurance: Municipal Bond Insurance Agency
Hawaii State Department of Budget & Finance
Special Purpose Mortgage Revenue Bonds
(Kaiser Pemanente), Series A,
4,900,000 3.55%, 03/01/15, Putable 10/07/98* VMIG1/A-1 4,900,000
Hawaii State Department of Budget & Finance
Special Purpose Mortgage Revenue Bonds
(Queens Health System), Revenue Bonds,
9,300,000 3.55%, 07/01/04, Putable 10/07/98* VMIG1/A-1+ 9,300,000
Stand-by Purchase Agreement: Morgan
Guaranty Trust
Hawaii State Housing Finance & Development
Corp. Revenue Bonds (Rental Housing System)
Series 89 A,
1,900,000 3.55%, 07/01/24, Putable 10/07/98* VMIG1/NR 1,900,000
Letter of Credit: Banque Nationale de Paris
Hawaii State Housing Finance & Development
Corp. Revenue Bonds (Affordable Rental
Housing Program) Series A,
5,300,000 3.50%, 07/01/27, Putable 10/07/98* VMIG1/NR 5,300,000
Letter of Credit: Banque Nationale de Paris
Hawaii State Department of Budget & Finance
Citizens Utility - Revenue Bonds Series
(Tax-Exempt Commercial Paper Series),
1,800,000 3.65%, 10/09/98 NR/A-1+ 1,800,000
Hawaii State Department of Budget & Finance
Citizens Utility - Revenue Bonds Series
(Tax-Exempt Commercial Paper Series),
1,000,000 3.50%, 10/16/98 NR/A-1+ 1,000,000
<PAGE>
Hawaii State Department of Budget & Finance
Citizens Utility - Revenue Bonds Series
(Tax-Exempt Commercial Paper Series),
400,000 3.70%, 10/16/98 NR/A-1+ 400,000
Hawaii State Department of Budget & Finance
Citizens Utility - Revenue Bonds Series
(Tax-Exempt Commercial Paper Series),
2,810,000 3.35%, 11/06/98 NR/A-1+ 2,810,000
Honolulu City & County, General Obligation Bonds,
Series A,
200,000 7.20%, 07/01/99 Aa2/AA 205,175
1,000,000 6.10%, 08/01/99, Escrowed to Maturity Aaa/AA 1,019,958
500,000 5.50%, 03/01/99, Escrowed to Maturity Aa2/AA 503,886
Honolulu City & County, General Obligation Bonds,
Series B,
1,400,000 7.00%, 10/01/07, Prerefunded 10/01/98 @ 101.5 Aaa/AA 1,421,000
2,750,000 4.50%, 10/01/98 Aa2/AA 2,750,000
Honolulu City & County, General Obligation Bonds,
Series C,
2,100,000 6.70%, 06/01/99, Escrowed to Maturity Aaa/AA 2,147,227
Kauai County, General Obligation Bonds, Series A,
100,000 4.90%, 02/01/99 Aaa/AAA 100,375
Insurance: Municipal Bond Insurance Agency
Maui County, General Obligation Bonds,
900,000 3.90%, 12/15/98 Aaa/AAA 900,377
Insurance: Financial Guaranty Insurance Co.
Maui County, General Obligation Bonds, Series A
180,000 4.00%, 03/01/99 Aaa/AAA 180,068
Insurance: Financial Guaranty Insurance Co.
Secondary Market Sevices Corporation Hawaii
Student Loan Revenue, Senior Series II,
4,500,000 3.65%, 09/01/2010, Putable 10/07/98* VMIG1/A-1+ 4,500,000
Letter of Credit: National Westminster,
Guaranteed Student Loans
Total Hawaii 56,248,116
<PAGE>
IDAHO (1.6%)
Idaho Health Facilities Authority Revenue Bonds
(St. Lukes Regional Medical Center Project),
2,000,000 4.10%, 05/01/22, Putable 10/01/98* VMIG1/NR 2,000,000
Letter of Credit: Bayerische Landesbank
ILLINOIS (3.6%)
Illinois Health Facilities Authority Revenue Bonds
(Central Dupage Health Corp. Project),
2,000,000 3.80%, 11/01/20, Putable 10/01/98* VMIG1/NR 2,000,000
Letter of Credit: Rabobank Nederland
Southwestern IL Development Authority
Environmental Improvement Revenue Bonds,
(Shell Oil Co Wood River Project),
1,100,000 3.85%, 11/01/25, Putable 10/07/98* VMIG1/A-1+ 1,100,000
1,375,000 4.25%, 11/01/25, Putable 10/07/98* VMIG1/A-1+ 1,375,000
Total Illinois 4,475,000
INDIANA (4.8%)
Gary, IN Environmental Improvement Revenue
Bonds (US Steel Corporation Project),
3,100,000 3.35%, 07/15/02, Putable 10/07/98* P-1/A-1+ 3,100,000
Letter of Credit: Bank of Nova Scotia
Indianapolis, IN Economic Development Revenue
Bonds (Jewish Federation Campus),
2,485,000 3.70%, 04/01/05, Putable 10/07/98* VMIG1/NR 2,485,000
Purdue University, IN Universtity Revenue Bonds
(Student Fee) Series L,
280,000 3.55%, 07/01/20, Putable 10/07/98* VMIG1/A-1+ 280,000
Total Indiana 5,865,000
KENTUCKY (1.6%)
Warsaw, KY Industrial Building Revenue Bonds
(Operating Partnership),
1,950,000 3.70%, 08/01/09, Putable 10/07/98* NR/A-1+ 1,950,000
Letter of Credit: Fifth Third Bank
<PAGE>
LOUSIANA (3.3%)
De Soto Parish, LA Pollution Control Revenue Bonds
(Central Louisiana Electric Company) Series A,
2,500,000 3.65%, 07/01/18, Putable 10/07/98* VMIG1/A-1+ 2,500,000
Letter of Credit: Westdeutsch Landesbank
St. Charles Parish, LA Pollution Control Revenue
Bonds (Shell Oil CO-Norco Project),
1,600,000 3.85%, 09/01/23, Putable 10/07/98* Aa2/AAA 1,600,000
Total Lousiana 4,100,000
MINNESOTA (0.8%)
Hennepin County MN Revenue Bonds, Refunding
Bonds,
1,000,000 4.90%, 10/01/98 Aaa/AAA 1,000,000
NEW MEXICO (1.4%)
Albuquerque, NM Airport Revenue Bonds Series A,
1,700,000 3.75%, 07/01/17, Putable 10/07/98* VMIG1/A-1+ 1,700,000
Letter of Credit: Bayerische Landesbank
NEW YORK (1.7%)
New York, NY General Obligation Bonds, Series B,
1,000,000 4.25%, 10/01/22, Putable 10/01/98* VMIG1/A-1+ 1,000,000
Letter of Credit: Financial Guaranty Insurance
Corporation
New York, NY Municipal Water Finance Authority,
Water & Sewer System Revenue Bonds, Series A,
1,100,000 4.15%, 06/15/25, Putable 10/01/98* VMIG1/A-1+ 1,100,000
Letter of Credit: Financial Guaranty Insurance
Corporation
Total New York 2,100,000
NORTH CAROLINA (1.1%)
Durham County, NC General Obligation Bonds,
Public Improvement Project
1,400,000 3.50%, 02/01/09, Putable 10/07/98* VMIG1/A-1+ 1,400,000
Letter of Credit: Wachovia Bank
<PAGE>
OHIO (5.0%)
Ohio State Air Quality Development Authority
Revenue Bonds, Series A
2,000,000 4.15%, 12/01/15, Putable 10/01/98* NR/A-1+ 2,000,000
Letter of Credit: Union Bank of Switzerland
Ohio State Public Facilities Revenue Bonds, Series A
1,000,000 6.50%, 6/01/01, Prerefunded 06/01/99 @102 Aaa/AAA 1,037,971
Letter of Credit: Municipal Bond Insurance Agency
Ohio State University Revenue Bonds, General
Receipts Series B,
3,155,000 3.90%, 12/01/06, Putable 10/07/98* VMIG1/A-1+ 3,155,000
Letter of Credit: National Westminster
Total Ohio 6,192,971
OKLAHOMA (1.6%)
Tulsa County Oklahoma Independent School
District No. 001
General Obligation Bonds
2,000,000 5.00%, 02/01/99 Aa2/NR 2,009,242
OREGON (2.2%)
County of Multnomah, Tax and Revenue
Anticipation Notes, General Obligation,
1,500,000 4.25%, 06/30/99 MIG1/Spl+ 1,506,468
Portland Oregon General Obligation Bonds,
Series B,
1,145,000 7.00%, 06/30/99 Aaa/NR 1,171,940
Total Oregon 2,678,408
<PAGE>
PENNSYLVANIA (1.5%)
Pennsylvania State Higher Education Assistance
Agency Student Loan Revenue Bonds, Series B,
1,800,000 3.80%, 07/01/2018, Putable 10/07/98* VMIG1/A-1+ 1,800,000
Letter of Credit: Student Loan Marketing
TENNESSEE (0.8%)
Metropolitan Government Nashville & Davidson
County General Obligation Bonds
1,000,000 5.25%, 05/15/99 Aa/AA 1,009,206
TEXAS (3.8%)
Collin County General Obligation Bonds
Refunding Bonds,
1,725,000 4.00%, 03/01/99 Aa1/AA 1,729,018
Lower Neches Valley Authority of Texas Revenue
Bonds (Chevron USA Income Project),
1,500,000 3.45%, 02/15/17, Putable 02/17/99 P-1/A-1+ 1,500,000
San Antonio, TX Electric and Gas Revenue Bonds,
Refunding Bonds,
1,500,000 5.00%, 02/01/99 Aa1/AA+ 1,506,858
Total Texas 4,735,876
UTAH (4.0%)
University of Utah Revenue Bonds, (Auxiliary &
Campus Facilities - A),
3,000,000 3.50%, 04/01/27, Putable 10/07/98* VMIG1/A-1+ 3,000,000
Letter of Credit: Bank of Nova Scotia
Weber County Utah School District, Refunding
Bonds, General Obligation,
2,000,000 3.80%, 06/15/99 Aaa/NR 2,002,728
Letter of Credit: School Board Guarantee
Total Utah 5,002,728
<PAGE>
VERMONT (0.8%)
Vermont State Student Assistance Corp. Revenue
Bonds (Student Loan Revenue),
1,000,000 3.50%, 01/01/04, Putable 10/07/98* VMIG1/NR 1,000,000
Letter of Credit: National Westminster
VIRGINIA (0.9%)
Virginia Beach Virginia Public Improvement,
Series A, General Obligation
1,100,000 6.85%, 04/01/98 Aa2/AA 1,120,610
WASHINGTON (7.0%)
King County, WA General Obligation Bonds
Series A, Unrefunded Balance,
1,655,000 5.00%, 01/01/99 Aa1/AA+ 1,660,803
King County, WA General Obligation Bonds
Series C, Refunding Bonds,
2,000,000 5.25%, 01/01/99 Aa1/AA+ 2,007,595
Seattle Washington, Refunding Bonds, Series B
General Obligation
1,565,000 4.50%, 03/01/99 Aa1/AA+ 1,570,796
Seattle, WA Water System Revenue Bonds,
1,000,000 3.50%, 09/01/25, Putable 10/07/98* VMIG1/A-1+ 1,000,000
Letter of Credit: Bayerische Landesbank
Washington State Refunding Bonds,
1,000,000 7.50%, 10/01/01, Prerefunded 10/01/98 @ 100 Aaa/AA+ 1,000,000
Washington State Health Care Facility Authority
(Fred Hutchinson Cancer Research
Center, Seattle) Series 1991-A,
1,175,000 4.10%, 01/01/18, Putable 10/01/98* VMIG1/NR 1,175,000
Letter of Credit: Morgan Guaranty Trust
Washington State Health Care Facility Authority
(Fred Hutchinson Cancer Research
Center, Seattle) Series 1991-B,
225,000 4.10%, 01/01/18, Putable 10/07/98* VMIG1/NR 225,000
Letter of Credit: Morgan Guaranty Trust
Total Washington 8,639,194
<PAGE>
WISCONSIN (2.5%)
Wisconsin State General Obligation, Series 1,
Refunding Bonds,
1,000,000 4.70%, 11/01/98 Aa2/AA 1,000,737
Wisconsin State General Obligation, Series G Bonds,
2,000,000 6.30%, 05/01/99 Aa2/AA 2,029,760
Total Wisconsin 3,030,497
Total Investments (cost $122,978,437**) 99.4% 122,978,437
Other assets in excess of liabilities 0.6 692,370
Net Assets 100.0% $123,670,807
<FN> (*) Variable rate obligation payable at par on demand
at any time on no more than seven days notice. </FN>
<FN> (**) Cost for Federal tax purposes is identical. </FN>
</TABLE>
See accompanying notes to financial statements
<PAGE>
PACIFIC CAPITAL
U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 1998 (UNAUDITED)
<TABLE>
FACE
AMOUNT U.S. TREASURY BILLS (3.1%) VALUE
<C> <S> <C>
$ 10,000,000 5.15%, due 01/07/99 $ 9,859,669
Total U.S. Treasury Bills (cost $9,859,669) 9,859,669
U.S. TREASURY NOTES (8.0%)
5,000,000 4.75%, due 10/31/98 4,997,101
5,000,000 5.125%, due 11/30/98 4,997,667
5,000,000 5.125%, due 12/31/98 4,996,318
5,000,000 5.0%, due 02/15/99 4,990,930
5,000,000 5.875%, due 10/31/98 5,002,082
Total U.S. Treasury Notes (cost $24,984,098) 24,984,098
U.S. GOVERNMENT AGENCIES (89.2%)
Federal Home Loan Bank (63.7%)
82,968,000 5.40%, due 10/01/98 82,968,000
10,000,000 5.35%, due 10/02/98 9,998,514
10,000,000 5.41%, due 10/07/98 9,990,984
10,000,000 5.36%, due 10/22/98 9,968,733
22,862,000 5.40%, due 11/12/98 22,717,969
5,000,000 5.35%, due 12/02/98 4,953,956
15,000,000 5.28%, due 12/04/98 14,859,200
10,000,000 5.33%, due 12/16/98 9,887,478
15,000,000 5.15%, due 02/24/99 14,686,708
10,000,000 5.17%, due 03/05/99 9,777,403
10,000,000 5.02%, due 03/24/99 9,757,367
Total Federal Home Loan Bank (cost $199,566,312) 199,566,312
Farm Credit Bureau (17.6%)
10,000,000 5.40%, due 10/01/98 10,000,000
7,197,000 5.38%, due 10/02/98 7,195,923
10,000,000 5.38%, due 10/13/98 9,982,067
15,000,000 5.41%, due 10/14/98 14,970,696
12,986,000 5.39%, due 10/30/98 12,929,616
Total Farm Credit Bureau (cost $55,078,302) 55,078,302
Tennessee Valley Authority (7.9%)
10,000,000 5.41%, due 10/09/98 9,987,978
15,000,000 5.39%, due 11/16/98 14,896,692
Total Tennessee Valley Authority (cost $24,884,670) 24,884,670
Total U.S. Government Agencies (cost $279,529,284) 279,529,284
Total Investments (cost $314,373,051*) 100.3% 314,373,051
Liabilities in excess of other assets (0.3) (984,781)
Net Assets 100.0% $313,388,270
<FN> (*) Cost for Federal tax purposes is identical. </FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
CASH TAX-FREE GOVERNMENT
FUND FUND FUND
<S> <C> <C> <C>
ASSETS:
Investments at value
(cost $492,866,956, $122,978,437 and $314,373,051,
respectively) $492,866,956 $122,978,437 $314,373,051
Repurchase agreements (cost $103,342,000, $-0- and
$-0-, respectively) 103,342,000 - -
Cash 955 38,175 -
Interest receivable 87,729 1,077,321 400,723
Other assets 9,073 470 40,593
Total Assets 596,306,713 124,094,403 314,814,367
LIABILITIES:
Dividends payable 2,373,315 330,315 1,273,369
Adviser and Administrator fees payable 240,762 45,268 105,676
Distribution fees payable 26,829 9,805 41,249
Accrued expenses 21,537 38,208 5,803
Total Liabilities 2,662,443 423,596 1,426,097
NET ASSETS $593,644,270 $123,670,807 $313,388,270
NET ASSETS CONSIST OF:
Capital Stock - Authorized an unlimited number of shares,
par value $.01 per share $ 5,941,620 $ 1,236,689 $ 3,133,615
Additional paid-in capital 588,225,601 122,434,323 310,237,422
Accumulated net realized gain (loss) on investments (522,951) (205) 17,233
$593,644,270 $123,670,807 $313,388,270
SHARES OF BENEFICIAL INTEREST:
Original Shares Class:
Net Assets $443,753,597 $ 86,935,448 $114,282,247
Shares outstanding 444,325,142 86,934,154 114,268,492
Net asset value per share $1.00 $1.00 $1.00
Service Shares Class:
Net Assets $149,890,673 $ 36,735,359 $199,106,023
Shares outstanding 149,836,814 36,734,727 199,092,990
Net asset value per share $1.00 $1.00 $1.00
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
CASH TAX-FREE GOVERNMENT
FUND FUND FUND
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 14,796,927 $ 2,376,804 $ 8,708,562
EXPENSES:
Investment Adviser fees (note 3) 972,988 189,842 508,432
Administrator fees (note 3) 347,862 74,908 129,727
Distribution fees (note 3) 151,252 65,228 213,057
Trustees' fees and expenses 67,000 30,000 33,000
Legal fees 23,000 8,000 16,500
Shareholders' reports 20,000 4,000 11,000
Fund accounting fees 15,000 14,000 15,000
Transfer and shareholder servicing agent fees 14,000 15,000 13,000
Registration fees and dues 13,000 2,000 19,000
Audit and accounting fees 11,000 10,000 10,000
Custodian fees (note 6) 4,400 6,200 4,125
Insurance 4,000 1,000 1,500
Miscellaneous 6,625 3,000 17,825
Total expenses 1,650,127 423,178 992,166
Expenses paid indirectly (note 6) (200) (2,600) (25)
Net expenses 1,649,927 420,578 992,141
Net investment income 13,147,000 1,956,226 7,716,421
Net realized gain (loss) from securities transactions 108,449 - 202
Net increase in net assets resulting from operations $ 13,255,449 $ 1,956,226 $ 7,716,623
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
<TABLE>
<CAPTION>
CASH FUND TAX-FREE FUND GOVERNMENT FUND
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPT. 30, 1998 MARCH 31, 1998 SEPT. 30, 1998 MARCH 31, 1998 SEPT. 30, 1998 MARCH 31, 1998
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 13,147,000 $ 24,566,804 $ 1,956,226 $ 2,949,543 $ 7,716,421 $ 8,897,324
Net realized gain (loss)
from securities transactions 108,449 89,803 - (205) 202 17,031
Net increase in net assets
resulting from operations 13,255,449 24,656,607 1,956,226 2,949,338 7,716,623 8,914,355
DIVIDENDS TO SHAREHOLDERS
FROM NET INVESTMENT INCOME:
Original Shares (10,252,592) (20,260,825) (1,222,281) (2,237,687) (3,693,155) (3,695,429)
Service Shares (2,894,408) (4,305,979) (733,945) (711,856) (4,023,266) (5,201,895)
Total dividends to shareholders
from net investment income (13,147,000) (24,566,804) (1,956,226) (2,949,543) (7,716,421) (8,897,324)
CAPITAL SHARE TRANSACTIONS
(at $1.00 per share):
Proceeds from shares sold:
Original Shares 816,870,991 1,215,049,334 89,137,020 145,166,331 266,244,256 323,059,102
Service Shares 175,938,354 287,984,097 82,995,300 66,068,395 482,127,478 858,192,771
992,809,345 1,503,033,431 172,132,320 211,234,726 748,371,734 1,181,251,873
Reinvested dividends and
distributions:
Original Shares 53,318 122,396 51,646 116,145 31,832 60,052
Service Shares 2,858,789 4,084,240 691,220 699,548 3,782,519 4,985,493
2,912,107 4,206,636 742,866 815,693 3,814,351 5,045,545
Cost of shares redeemed:
Original Shares (792,020,077) (1,217,844,005) (78,815,671) (159,715,064) (252,811,911) (288,014,215)
Service Shares (142,363,348) (244,416,529) (84,063,081) (55,172,286) (436,691,204) (796,725,850)
(934,383,425) (1,462,260,534) (162,878,752) (214,887,350) (689,503,115) (1,084,740,065)
Change in net assets
from capital share
transactions 61,338,027 44,979,533 9,996,434 (2,836,931) 62,682,970 101,557,353
Total increase (decrease)
in net assets 61,446,476 45,069,336 9,996,434 (2,837,136) 62,683,172 101,574,384
NET ASSETS:
Beginning of period 532,197,794 487,128,458 113,674,373 116,511,509 250,705,098 149,130,714
End of period $ 593,644,270 $ 532,197,794 $ 123,670,807 $ 113,674,373 $ 313,388,270 $ 250,705,098
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. ORGANIZATION
Cash Assets Trust (the "Trust") was organized on May 7, 1984 as a
Massachusetts business trust and is registered under the Investment Company
Act of 1940 (the "1940 Act") as an open-end investment company.
The Trust consists of the following three investment portfolios (referred
to individually as a "Fund" and collectively as the "Funds"): Pacific Capital
Cash Assets Trust (a diversified portfolio which commenced operations on
December 5, 1984), Pacific Capital Tax-Free Cash Assets Trust (a
non-diversified portfolio which commenced operations on April 4, 1989), and
Pacific Capital U.S. Government Securities Cash Assets Trust (a diversified
portfolio which commenced operations on April 4, 1989). The Trust is
authorized to issue for each Fund an unlimited number of shares of $.01 par
value in two classes of shares; the Original Shares Class and the Service
Shares Class. The Original Shares Class includes all currently outstanding
shares of each Fund that were issued prior to January 20, 1995, the date on
which the Capital structure was changed to include two classes rather than
one. The two classes of shares are substantially identical, except that
Service Shares bear the fees that are payable under the Trust's Distribution
Plan.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Funds in the preparation of their financial statements. The policies are
in conformity with generally accepted accounting principles for investment
companies.
a) PORTFOLIO VALUATION: Each Fund's portfolio securities are valued by the
amortized cost method permitted in accordance with Rule 2a-7 under the
Investment Company Act of 1940 (the "1940 Act"), which, after considering
accrued interest thereon, approximates market. Under this method, a
portfolio security is valued at cost adjusted for amortization of premiums
and accretion of discounts. Amortization of premiums and accretion of
discounts are included in interest income.
b) SECURITIES TRANSACTIONS AND RELATED INVESTMENT INCOME: Securities
transactions are recorded on the trade date. Realized gains and losses
from securities transactions are reported on the identified cost basis.
Interest income is recorded daily on the accrual basis and is adjusted for
amortization of premiums and accretion of discounts as discussed in the
preceding paragraph.
c) DETERMINATION OF NET ASSET VALUE AND CALCULATION OF EXPENSES: The net
asset value per share for each class of the Funds' shares is determined as
of 4:00 p.m. New York time on each day that the New York Stock Exchange is
open by dividing the value of the assets of the Fund allocable to that
class less Fund liabilities allocable to the class and any liabilities
charged directly to the class, exclusive of surplus, by the total number
of shares of the class outstanding. Investment income, realized and
unrealized gains and losses, if any, and expenses other than class
specific expenses, are allocated daily to each class of shares based upon
the proportion of net assets of each class.
<PAGE>
Class specific expenses are borne by the affected class. Service fee
payments under Rule 12b-1 are borne solely by and charged to the Service
Shares based on net assets of that class.
d) FEDERAL INCOME TAXES: It is the policy of each Fund to qualify as a
regulated investment company by complying with the provisions of the
Internal Revenue Code applicable to certain investment companies. Each
Fund intends to make distributions of income and securities profits
sufficient to relieve it from all, or substantially all, Federal
income and excise taxes.
e) REPURCHASE AGREEMENTS: It is each Fund's policy to monitor closely the
creditworthiness of all firms with which it enters into repurchase
agreements, and to take possession of, or otherwise perfect its security
interest in, securities purchased under agreements to resell. The
securities purchased under agreements to resell are marked to market
every business day so that the value of the "collateral" is at least
equal to the value of the "loan" (repurchase agreements being defined as
"loans" in the 1940 Act), including the accrued interest earned thereon,
plus sufficient additional market value as is considered necessary to
provide a margin of safety.
f) USE OF ESTIMATES: The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period.
Actual results could differ from those estimates.
3. FEES AND RELATED PARTY TRANSACTIONS
a) MANAGEMENT ARRANGEMENTS:
Pacific Century Trust (the "Adviser"), a division of Bank of Hawaii,
serves as Investment Adviser to the Trust. In this role, under Investment
Advisory Agreements, the Adviser supervises the Funds' investments and
provides various services. The Funds also have Administration Agreements with
Aquila Management Corporation (the "Administrator", formerly Sub-Adviser and
Administrator) to provide all administrative services to the Funds other than
those relating to the investment portfolio and the maintenance of the
accounting books and records. Specific details as to the nature and extent of
the services provided by the Adviser and the Administrator are more fully
defined in the Prospectus and Statement of Additional Information of the
Funds. For their services, the Adviser and the Administrator each receive a
fee which is payable monthly and computed as of the close of business each
day on the net assets of each Fund at the following annual rates:
Pacific Capital Cash Assets Trust - On net assets up to $325 million, the
fee is paid to the Adviser and the Administrator at the annual rate of 0.33%
and 0.17%, respectively and on net assets above that amount at the annual
rate of 0.43% and 0.07%, respectively. For the six months ended September 30,
1998, the Fund incurred fees under the Advisory Agreement and the
Administration Agreement of $972,988 and $347,862, respectively.
<PAGE>
Pacific Capital Tax-Free Cash Assets Trust - On net assets up to $95
million, the fee is paid to the Adviser and the Administrator at the annual
rate of 0.27% and 0.13%, respectively and on net assets above that amount at
the annual rate of 0.33% and 0.07%, respectively. For the six months ended
September 30, 1998, the Fund incurred fees under the Advisory Agreement and
the Administration Agreement of $189,842 and $74,908, respectively.
Pacific Capital U.S. Government Securities Cash Assets Trust - On net
assets up to $60 million, the fee is paid to the Adviser and the Administrator
at the annual rate of 0.27% and 0.13%, respectively and on net assets above
that amount at the annual rate of 0.33% and 0.07%, respectively. For the six
months ended September 30, 1998, the Fund incurred fees under the Advisory
Agreement and the Administration Agreement of $508,432 and $129,727,
respectively.
The Adviser and the Administrator each agrees that the above fees shall be
reduced, but not below zero, by an amount equal to its proportionate share
(determined on the basis of the respective fees computed as described above)
of the amount, if any, by which the total expenses of a Fund in any fiscal
year, exclusive of taxes, interest and brokerage fees, shall exceed the
lesser of (i) 2.5% of the first $30 million of average annual net assets of
the Fund plus 2% of the next $70 million of such assets and 1.5% of its
average annual net assets in excess of $100 million, or (ii) 25% of the
Fund's total annual investment income. The payment of the above fees at the
end of any month will be reduced or postponed so that at no time will there
be any accrued but unpaid liability under this expense limitation. No such
reduction in fees was required during the six months ended September 30,
1998.
b) DISTRIBUTION AND SERVICE FEES:
Each Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule
12b-1 under the 1940 Act. A part of the Plan authorizes payment of certain
distribution or service fees by the Service Shares Class of the Fund. Such
payments are made to "Designated Payees"- broker-dealers, other financial
institutions and service providers who have entered into appropriate
agreements with the Distributor and which have rendered assistance in the
distribution and/or retention of the Funds' Service Shares or in the servicing
of Service Share accounts. The total payments under this part of a Fund's
Plan may not exceed 0.25 of 1% of its average annual assets represented by
Service Shares. No such payments will be made by the Original Share Class.
Specific details about each Plan are more fully defined in the Prospectus and
Statement of Additional Information of the Funds.
Under a Distribution Agreement, Aquila Distributors, Inc. (the
"Distributor") serves as the exclusive distributor of the Funds' shares. No
compensation or fees are paid to the Distributor for such share distribution.
4. DISTRIBUTIONS
The Funds declare dividends daily from net investment income and make
payments monthly in additional shares at the net asset value per share or in
cash, at the shareholder's option.
<PAGE>
5. GUARANTEES OF CERTAIN COMMERCIAL PAPER
Various banks and other institutions have issued irrevocable letters of
credit or guarantees for the benefit of the holders of certain commercial
paper. Payment at maturity of principal and interest of certain commercial
paper held by the Funds is supported by such letters of credit or guarantees.
6. CUSTODIAN FEES
The Funds have negotiated an offset arrangement with their custodian
wherein they receive credit toward the reduction of custodian fees whenever
there are uninvested cash balances. For the six months ended September 30,
1998, the custodian fees of the Cash Fund, the Tax-Free Fund and the
Government Fund, amounted to $4,400, $6,200 and $4,125, respectively. Of
these amounts, $200, $2,600 and $25, respectively, were offset by such
credits. It is the general intention of the Funds to invest, to the extent
practicable, some or all of cash balances in income-producing assets rather
than leave cash on deposit with the custodian.
7. PORTFOLIO ORIENTATION
Since the Pacific Capital Tax-Free Cash Assets Trust has a significant
portion of its investments in obligations of issuers within Hawaii, it is
subject to possible risks associated with economic, political, or legal
developments or industrial or regional matters specifically affecting Hawaii
and whatever effects these may have upon Hawaii issuers ability to meet their
obligations.
PREPARING FOR YEAR 2000
The Trustees and officers of the Funds have been monitoring
issues involving preparedness for the turn of the century for some time in an
effort to minimize any potential impact upon the Funds and their
shareholders. Our officers have focussed significant time and effort in order
that the various computerized functions that could affect the Funds at the
beginning of the year 2000 are ready.
The Funds are highly reliant on certain mission-critical
suppliers' services. Each supplier of these services has provided the Funds'
officers with assurances that it is actively addressing potential problems
relating to the year 2000. The officers, in turn, are monitoring the progress
of its suppliers, and currently see no significant cause for alarm with
respect to any of the Funds' suppliers.
Unfortunately, as you can well understand, we cannot guarantee
matters beyond our control, including supplier operations. We assure you,
however, that we recognize a responsibility to inform our shareholders if in
the future we become aware of any developments which would lead us to believe
that the Funds will be significantly affected by year 2000 problems.
We will continue to keep you up-to-date through future
communications.
<PAGE>
PACIFIC CAPITAL
CASH ASSETS TRUST
FINANCIAL HIGHLIGHTS
(UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SERVICE SHARES(1) ORIGINAL SHARES(2)
SIX MONTHS PERIOD SIX MONTHS
ENDED YEAR ENDED MARCH 31, ENDED ENDED YEAR ENDED MARCH 31,
9/30/98 1998 1997 1996 3/31/95** 9/30/98 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment
Operations:
Net investment income 0.02 0.05 0.05 0.05 0.01 0.03 0.05 0.05 0.05 0.04 0.03
Less Distributions:
Dividends from net
investment income (0.02) (0.05) (0.05) (0.05) (0.01) (0.03) (0.05) (0.05) (0.05) (0.04) (0.03)
Net Asset Value, End of
Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total Return (%) 2.42+ 4.88 4.62 5.06 0.85+ 2.55+ 5.15 4.88 5.32 4.40 2.74
Ratios/Supplemental Data
Net Assets, End of
Period ($ millions) 149.9 113.4 65.8 32.9 3.54 43.8 418.8 421.4 308.7 486.7 407.1
Ratio of Expenses to
Average Net Assets (%) 0.82* 0.82 0.85 0.86 0.83* 0.57* 0.57 0.60 0.60 0.59 0.59
Ratio of Net Investment
Income to Average Net
Assets (%) 4.78* 4.78 4.53 4.84 5.26* 5.03* 5.04 4.79 5.24 4.40 2.71
<CAPTION>
For periods after April 1, 1995, net investment income per share and the
ratios of income and expenses to average net assets without the expense
offset in custodian fees for uninvested cash balances would have been:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net investment income ($) 0.02 0.05 0.05 0.05 0.03 0.05 0.05 0.05
Ratio of Expenses to
Average Net Assets (%) 0.82* 0.83 0.85 0.86 0.57* 0.58 0.60 0.61
Ratio of Net Investment
Income to Average Net
Assets (%) 4.78* 4.77 4.53 4.84 5.04* 5.03 4.78 5.23
<FN> (1) New class of shares established on January 20, 1995. </FN>
<FN> (2) Designated as the "Original Shares" class of shares on January 20, 1995.</FN>
<FN> ** For the period from February 1, 1995 (commencement of operations) to March 31, 1995. </FN>
<FN> + Not annualized.
<FN> * Annualized. </FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
PACIFIC CAPITAL
TAX-FREE CASH ASSETS TRUST
FINANCIAL HIGHLIGHTS
(UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SERVICE SHARES(1) ORIGINAL SHARES(2)
SIX MONTHS PERIOD SIX MONTHS
ENDED YEAR ENDED MARCH 31, ENDED ENDED YEAR ENDED MARCH 31,
9/30/98 1998 1997 1996 3/31/95** 9/30/98 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment
Operations:
Net investment income 0.01 0.03 0.03 0.03 0.01 0.02 0.03 0.03 0.03 0.03 0.02
Less Distributions:
Dividends from net
investment income (0.01) (0.03) (0.03) (0.03) (0.01) (0.02) (0.03) (0.03) (0.03) (0.03) (0.02)
Net Asset Value, End of
Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total Return (%) 1.42+ 2.83 2.75 3.11 0.52+ 1.54+ 3.08 3.00 3.37 2.74 2.02
Ratios/Supplemental Data
Net Assets, End of Period
($ millions) 36.7 37.1 25.5 17.6 1.4 86.9 76.6 91.0 125.2 138.3 113.9
Ratio of Expenses to
Average Net Assets (%) 0.79* 0.88 0.80 0.80 0.77* 0.54* 0.63 0.55 0.54 0.55 0.56
Ratio of Net Investment
Income to Average Net
Assets (%) 2.81* 2.79 2.70 2.97 3.22* 3.06* 3.04 2.97 3.32 2.74 1.99
<CAPTION>
For the year 1994, net investment income per share and the ratios of income
and expenses to average net assets without the Adviser's and Administrator's
voluntary waiver of fees and for periods after April 1, 1995, without the
expense offset in custodian fees for uninvested cash balances, would have
been:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Investment Income ($) 0.01 0.03 0.03 0.03 0.02 0.03 0.03 0.03 0.02
Ratio of Expenses to Average
Net Assets (%) 0.79* 0.88 0.80 0.80 0.54* 0.63 0.55 0.54 0.58
Ratio of Net Investment
Income to Average Net
Assets (%) 2.81* 2.79 2.70 2.97 3.04* 3.04 2.97 3.32 1.97
<FN> (1) New class of shares established on January 20, 1995. </FN>
<FN> (2) Designated as the "Original Shares" class of shares on January 20, 1995. </FN>
<FN> ** For the period from February 1, 1995 (commencement of operations) to March 31, 1995. </FN>
<FN> + Not annualized. </FN>
<FN> * Annualized. </FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
PACIFIC CAPITAL
U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST
FINANCIAL HIGHLIGHTS
(UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SERVICE SHARES(1) ORIGINAL SHARES(2)
SIX MONTHS PERIOD SIX MONTHS
ENDED YEAR ENDED MARCH 31, ENDED ENDED YEAR ENDED MARCH 31,
9/30/98 1998 1997 1996 3/31/95** 9/30/98 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment
Operations:
Net investment income 0.02 0.05 0.04 0.05 0.01 0.02 0.05 0.05 0.05 0.04 0.03
Less Distributions:
Dividends from net
investment income (0.02) (0.05) (0.04) (0.05) (0.01) (0.02) (0.05) (0.05) (0.05) (0.04) (0.03)
Net Asset Value, End of
Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total Return (%) 2.39+ 4.69 4.50 4.94 0.94+ 2.52+ 4.95 4.76 5.20 4.20 2.59
Ratios/Supplemental Data
Net Assets, End of Period
($ millions) 199.1 149.9 83.4 11.8 0.5 114.3 100.8 65.7 74.0 64.0 91.7
Ratio of Expenses to
Average Net Assets (%) 0.74* 0.77 0.79 0.79 0.85* 0.49* 0.52 0.55 0.54 0.54 0.52
Ratio of Net Investment
Income to Average Net
Assets (%) 4.72* 4.60 4.43 4.68 5.09* 4.97* 4.85 4.66 5.07 4.04 2.58
<CAPTION>
Net investment income per share and the ratios of income and expenses to
average net assets without the Adviser's and Administrator's voluntary waiver
of fees for periods prior to April 1, 1996, and for periods after April 1,
1995, without the expense offset in custodian fees for uninvested cash
balances, would have been:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Investment Income ($) 0.02 0.05 0.04 0.05 0.01 0.02 0.05 0.05 0.05 0.04 0.03
Ratio of Expenses to
Average Net Assets (%) 0.74* 0.77 0.80 0.88 0.98* 0.49* 0.52 0.56 0.63 0.59 0.52
Ratio of Net Investment
Income to Average Net
Assets (%) 4.72* 4.60 4.42 4.60 4.96* 4.97* 4.85 4.65 4.98 3.99 2.58
<FN> (1) New class of shares established on January 20, 1995. </FN>
<FN> (2) Designated as the "Original Shares" class of shares on January 20, 1995. </FN>
<FN> ** For the period from February 1, 1995 (commencement of operations) to March 31, 1995. </FN>
<FN> + Not annualized. </FN>
<FN> * Annualized. </FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
