<PAGE>
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
Diana P. Herrmann, 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 LLP
345 Park Avenue * New York, New York 10154
Further information is contained in the Prospectus
which must precede or accompany this report.
ANNUAL
REPORT
MARCH 31, 1999
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>
<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
ANNUAL REPORT
May 15, 1999
Dear Investor:
We are pleased to provide you with the Annual Report for The Pacific
Capital Funds of Cash Assets Trust (the "Trust") for the fiscal year ended
March 31, 1999.
The enclosed Annual Report includes the three portfolios of Cash
Assets 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. Each
of the three portfolios were specifically created to meet the short-term
investment needs of Hawaii investors and others.
* * * * * * *
The economy continued to grow at a solid pace during the current
report period, primarily due to strong consumer spending and the Federal
Reserve's accommodative monetary policy stance. The American economy has been
defying predictions of a slowdown for several years; it grew at a robust 6.1%
during the fourth calendar quarter of 1998 followed by a surprisingly strong
4.5% in the first quarter of this year. Employment growth also remained
strong during the period and the unemployment rate remained consistently
under 4.5%. Notwithstanding this impressive employment outlook and the
economy's torrid growth, the current low level of inflation we have
experienced over the past several years continues. The low level of inflation
helped pave the way for the Federal Reserve's decision to lower interest
rates toward the end of 1998.
A key event during this Annual Report period was the economic
turmoil in Southeast Asia, Russia, Japan and Latin America. Although this
helped keep inflation in check, as the weak currencies of those countries
allowed them to export goods to the U.S. at low dollar prices, many financial
institutions curtailed their lending, creating a "credit crunch."
Keeping a watchful eye on events, the Federal Reserve began to
lower the Federal Funds rate target three times by 0.25 of 1% to 4.75%, in an
effort to stimulate growth. The Fed's move was aimed at providing liquidity
to the financial system and therefore make it easier for major corporations
to obtain favorable lending from banks.
</PAGE>
<PAGE>
The monetary action policy by the Fed during last fall's emerging
market turmoil affected short-term interest rates during the Trust's current
fiscal year. As mentioned in previous report letters, yields on money market
funds, like the Trust, move in concert with rate policies pursued by the
Federal Reserve. However, each of The Pacific Capital Funds of Cash Assets
Trust continues to provide competitive returns to alternative short-term
investment opportunities without wavering from their conservative investment
guidelines.
Each of the Trust's carefully selected portfolios are continuously
managed by its Investment Adviser, Pacific Century Trust. Both the Investment
Adviser and management believe that there is absolutely no substitute for the
strict adherence to investments of high quality which possess minimum credit
risk in order to maintain safety for your cash reserves. You can rest assured
that the Investment Adviser will examine with great diligence the
marketability and creditworthiness of all securities in each of the Trust's
portfolios.
All associated with the Pacific Capital Funds of Cash Assets Trust
want to thank you for your continued support and confidence. You can be
assured that every attempt will be made to produce as high a rate of return
as possible within market conditions, but without sacrificing protection of
principal.
Sincerely,
Lacy B. Herrmann
Chairman,
Board of Trustees
Diana P. Herrmann
President
</PAGE>
<PAGE>
(Logo of KPMG: Four solid rectangles with the letters KPMG silhouetted in
front of them)
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders of
Cash Assets Trust:
We have audited the accompanying statements of assets and
liabilities of The Pacific Capital Funds of Cash Assets Trust (the "Trust")
(comprised of Cash Fund, Tax-Free Fund and Government Fund), including the
statements of investments, as of March 31, 1999, and the related statements
of operations for the year then ended, the statements of changes in net
assets for each of the years in the two-year period then ended, and the
financial highlights for each of the years in the five-year period then
ended. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of March 31, 1999, by correspondence with the custodian.
An audit also includes assessing the accounting principles used, and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of the Trust as of March 31, 1999, the results of its operations for
the year then ended, the changes in its net assets for each of the years in
the two-year period then ended, and the financial highlights for each of the
years in the five-year period then ended, in conformity with generally
accepted accounting principles.
KPMG LLP
New York, New York
April 27, 1999
</PAGE>
<PAGE>
PACIFIC CAPITAL
CASH ASSETS TRUST
STATEMENT OF INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
FACE
AMOUNT U.S. TREASURY BILLS (10.0%) VALUE
</CAPTION>
<S> <C> <C>
$ 60,069,000 4.32%, 01/06/00 $ 58,050,680
Total U.S. Treasury Bills 58,050,680
COMMERCIAL PAPER (72.9%)
Automotive (5.2%)
30,000,000 Ford Motor Credit Co., 4.87%, 4/07/99 29,975,650
Banking/Credit Union (5.4%)
ABN Formosa Plastics - LOC - ABN Amro Bank N.V.,
18,000,000 4.87%, 4/29/99 17,931,820
Barc Itau S.A. - LOC - Barclays Bank PLC,
5,100,000 4.92%, 6/07/99 5,053,301
Formosa Plastics USA - LOC - Bank of America
8,275,000 4.85%, 5/07/99 8,234,866
Total Banking/Credit Union 31,219,987
Brokerage (20.7%)
30,000,000 Bear Stearns, 4.87%, 4/06/99 29,979,708
30,000,000 Goldman Sachs, 4.86%, 4/05/99 29,983,800
30,000,000 Morgan Stanley Dean Witter, 4.85%, 4/05/99 29,983,833
30,000,000 Salomon Smith Barney, 4.88%, 4/07/99 29,975,600
Total Brokerage 119,922,941
Diversified (4.3%)
25,000,000 Cargill, 4.89%, 4/19/99 24,938,875
Education (11.3%)
16,500,000 Duke University, 4.84%, 6/02/99 16,362,463
25,000,000 Harvard University, 4.79%, 4/23/99 24,926,819
5,000,000 Stanford University, 5.04%, 4/01/99 5,000,000
5,000,000 Stanford University, 4.85%, 6/04/99 4,956,889
9,000,000 Stanford University, 4.84%, 6/21/99 8,903,070
5,500,000 Yale University, 4.86%, 5/13/99 5,468,815
Total Education 65,618,056
</PAGE>
<PAGE>
Electrical & Electronic (3.9%)
23,000,000 Motorola Corp., 4.80%, 5/27/99 22,828,267
Finance (19.6%)
20,000,000 American Express Credit, 4.80%, 12/24/99 19,288,000
20,000,000 Associates First Capital, 4.83%, 4/20/99 19,949,017
25,000,000 General Electric Capital Corp., 4.50%, 7/16/99 24,668,750
25,000,000 National Rural Utilities, 4.82%, 5/13/99 24,859,417
25,000,000 Norwest Financial, 4.80%, 4/08/99 24,976,667
Total Finance 113,741,851
Household Products (2.5%)
15,000,000 Clorox, 4.81%, 6/23/99 14,833,654
Total Commercial Paper 423,079,281
CORPORATE NOTES (2.6%)
15,000,000 Peoples Benefit Life Variable Rate Note,
5.55%, 7/01/99 (1) 15,000,000
Total Corporate Notes 15,000,000
REPURCHASE AGREEMENTS (14.9%)
35,616,000 Dresdner Kleinwort, 4.95%, due 4/01/99 35,616,000
(Proceeds of $35,620,897 to be received at maturity)
Collateral: $34,770,000 U.S.Treasury Notes 7.75% due 11/30/99
Collateral Market Value $36,328,320
51,000,000 Dresdner Kleinwort, 4.95%, due 4/01/99 51,000,000
(Proceeds of $51,007,012 to be received at maturity)
Collateral: $50,000,000 U.S.Treasury Notes 7.75% due 12/31/99
Collateral Market Value $52,020,000
Total Repurchase Agreements 86,616,000
Total Investments (cost $582,745,961*) 100.4% 582,745,961
Liabilities in excess of other assets (0.4) (2,353,668)
Net Assets 100.0% $ 580,392,293
* Cost for Federal tax purposes is identical.
(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.
See accompanying notes to financial statements.
</PAGE>
<PAGE>
PACIFIC CAPITAL
TAX-FREE CASH ASSETS TRUST
STATEMENT OF INVESTMENTS
MARCH 31, 1999
</TABLE>
<TABLE>
<CAPTION>
RATING
FACE MOODY'S/
AMOUNT BONDS AND NOTES (99.5%) S&P VALUE
</CAPTION>
<S> <C> <C> <C>
CONNECTICUT (0.8%)
Connecticut State Series C Bonds 1999,
General Obligation Bonds
$ 1,000,000 5.70%, 11/15/99 Aa3/AA $ 1,016,795
FLORIDA (1.7%)
Florida State Division Bd Finance Department
Bonds 1998, Revenue Bonds
2,250,000 4.50%, 07/01/99 Aaa/AAA 2,255,021
FSA Insured
GEORGIA (1.2%)
Georgia State, General Obligation Bonds 1996,
Series C
1,620,000 6.25%, 08/01/99 Aaa/AAA 1,633,739
HAWAII (39.0%)
Hawaii State, Housing Finance & Development
Revenue Bonds
5,300,000 3.25%, 07/01/27, Weekly Reset* VMIG1/NR 5,300,000
Letter of Credit: Banque Nationale de Paris
Hawaii State General Obligation 1996 Series CL
1,000,000 4.375%, 03/01/00 Aaa/A+ 1,010,935
Hawaii State Arpts Revenue Bonds 1991, Second
Series, U.S. Government Insured
3,000,000 6.10%, 07/01/99 Aaa/AAA 3,018,261
Hawaii State Arpts Revenue Bonds 1992,
MBIA Insured
2,000,000 5.10%, 07/01/99 Aaa/AAA 2,008,091
Hawaii State General Obligation 1997 Series CQ,
MBIA Insured
2,000,000 4.25%, 10/01/99 Aaa/AAA 2,008,386
Hawaii State, General Obligation 1993 Series CG,
FGIC Insured
500,000 4.25%, 07/01/99 Aaa/A+ 500,750
Hawaii State, General Obligation 1993 Series CE
U.S. Government Insured
1,000,000 4.60%, 06/01/99 A1/A+ 1,001,875
</PAGE>
<PAGE>
Hawaii State General Obligation 1991 Series BV,
U.S. Government Insured
1,000,000 5.70%, 11/01/99 A1/A+ 1,015,435
Hawaiian Department of Budget and Finance,
Citizen Utilities
1,500,000 2.75%, 04/07/99 NR/A1+ 1,500,000
1,700,000 2.75%, 04/01/99 NR/A1+ 1,700,000
2,810,000 2.75%, 07/16/99 NR/A1+ 2,810,000
Hawaii State Housing Finance & Development
Revenue Bonds Series 89A
1,900,000 3.125%, 07/01/24, Weekly Reset* VMIG1/NR 1,900,000
Letter of Credit: Banque Nationale de Paris
Hawaii State General Obligation 1993 Series CC
1,200,000 4.60%, 02/01/00 A1/A+ 1,214,946
Hawaii Secondary Market Services Student Loan
Revenue Bonds 1995 Series II
5,000,000 3.10%, 09/01/10, Weekly Reset* VMIG1/A1+ 5,000,000
Letter of Credit: National Westminster Bank
Hawaii State Department of Budget & Finance
ADJ-Queens Health Sys-SER A 1998
Revenue Bonds
16,200,000 3.00%, 07/01/26, Weekly Reset* VMIG1/A1+ 16,200,000
Letter of Credit: Morgan Guaranty Trust Co.
Honolulu Hawaii City & County 1991 General
Obligation Series A
1,000,000 6.10%, 08/01/99 Aaa/AA 1,008,009
U.S. Government Insured
Honolulu Hawaii City & County 1990 General
Obligation Series C
3,600,000 6.80%, 06/01/99 Aaa/AA 3,621,185
U.S. Government Insured
Honolulu Hawaii City & County 1990 General
Obligation Series A
200,000 7.20%, 07/01/99 Aa/AA 201,725
Total Hawaii 51,019,598
</PAGE>
<PAGE>
IDAHO (2.9%)
Idaho Health Facilities Authority Revenue Bonds
(St. Lukes Regional Medical Center Project),
3,825,000 3.10%, 05/01/22, Daily Reset* VMIG1/NR 3,825,000
Letter of Credit: Bayerische Landesbank
ILLINOIS (5.4%)
Chicago Illinois ADJ-Tender Notes 1998
General Obligation Notes
1,000,000 2.85%, 01/31/00, Putable 10/28/99* VMIG1/A1+ 1,000,000
Letter of Credit: Morgan Guaranty Trust Co.
Illinois Health Facility Authority Rev Central
Dupage-Healthcorp PJ Revenue Bonds
3,585,000 3.10%, 11/01/20, Daily Reset* VMIG1/NR 3,585,000
Letter of Credit: Rabobank Nederland
Southwestern IL Development Authority
Environmental Improvement Revenue Bonds,
(Shell Oil Co Wood River Project),
1,100,000 3.30%, 11/01/25, Daily Reset* VMIG1/A1+ 1,100,000
1,375,000 3.30%, 11/01/25, Daily Reset* VMIG1/A1+ 1,375,000
Total Illinois 7,060,000
INDIANA (7.9%)
Indianapolis, IN Economic Development Revenue
Bonds (Jewish Federation Campus),
2,485,000 2.95%, 04/01/05, Daily Reset* Aaa/AA 2,485,000
Letter of Credit: First Chicago NBD
Purdue University, IN University Revenue Bonds
(Student Fee) Series H,
335,000 2.90%, 07/01/17, Weekly Reset* VMIG1/A1+ 335,000
Purdue University, IN University Revenue Bonds
(Student Fee) Series O,
2,355,000 2.90%, 07/01/19, Weekly Reset* Aa2/AA 2,355,000
Purdue University, IN University Revenue Bonds
(Student Fee) Series L,
2,095,000 2.90%, 07/01/20, Weekly Reset* VMIG1/A1+ 2,095,000
Purdue University, IN University Revenue Bonds
(Student Fee) Series E
3,115,000 2.90%, 07/01/11, Weekly Reset* Aa2/AA 3,115,000
Total Indiana 10,385,000
</PAGE>
<PAGE>
KENTUCKY (1.5%)
Warsaw, KY Industrial Building Revenue Bonds
(Operating Partnership),
1,950,000 3.10%, 08/01/09, Weekly Reset* NR/A1+ 1,950,000
Letter of Credit: Fifth Third Bank
LOUISIANA (3.1%)
De Soto Parish, LA Pollution Control Revenue Bonds
(Central Louisiana Electric Company) Series A,
2,500,000 2.95%, 07/01/18, Weekly Reset* VMIG1/A1+ 2,500,000
Letter of Credit: Westdeutsch Landesbank
St. Charles Parish, LA Pollution Control Revenue
Bonds (Shell Oil Co.-Norco Project),
1,600,000 3.30%, 09/01/23, Daily Reset* Aa2/AAA 1,600,000
Total Louisiana 4,100,000
MASSACHUSETTS (0.8%)
Massachusetts Bay Transit Authority General
Transportation System Revenue Bonds Series D
1,000,000 5.00%, 03/01/00 Aa3/AA- 1,016,084
NEW HAMPSHIRE (0.9%)
New Hampshire Municipal Bank 1999 Revenue
Bonds Series A
1,165,000 4.00%, 01/15/00 Aaa/AAA 1,174,013
FSA Insured
NEW MEXICO (1.9%)
Albuquerque, NM Airport Revenue Bonds Series A,
1,500,000 3.00%, 07/01/17, Weekly Reset* VMIG1/A1+ 1,500,000
Letter of Credit: Bayerische Landesbank
Bernalillo County New Mexico 1992
General Obligation Bond
1,000,000 5.20%, 08/01/99 Aa1/AA+ 1,006,922
Total New Mexico 2,506,922
</PAGE>
<PAGE>
NEW YORK (2.3%)
New York, NY Municipal Water Finance Authority
Water & Sewer System Revenue Bonds, Series A,
3,000,000 3.35%, 06/15/25, Daily Reset* VMIG1/A1+ 3,000,000
Letter of Credit: Financial Guaranty Insurance
Corporation
NORTH CAROLINA (1.0%)
Durham County, NC General Obligation Bonds,
Public Improvement Project
1,400,000 3.05%, 02/01/09, Weekly Reset* VMIG1/A1+ 1,400,000
Letter of Credit: Wachovia Bank
OHIO (6.0%)
Cleveland Ohio City School District 1993
Special Obligation Revenue Anticipation Notes
1,000,000 4.70%, 06/01/99 Aaa/AAA 1,002,978
U.S. Government Insured
Ohio State University Revenue Bonds 1985,
Series B
990,000 2.90%, 12/01/01, Weekly Reset* VMIG1/A1+ 990,000
Letter of Credit: Key Corporation
Ohio State Public Facilities Revenue Bonds,
Series II-B
1,000,000 4.50%, 11/01/99, Aa3/AA- 1,008,291
Letter of Credit: Municipal Bond Insurance Agency
Ohio State University Revenue Bonds, General
Receipts Series A,
1,000,000 6.50%, 06/01/01, Prerefunded on 06/01/99 @ 102 Aaa/AAA 1,024,511
MBIA Insured
Ohio State University Revenue Bonds 1986
General Reception Series B Revenue Bonds
3,855,000 2.90%, 12/01/06, Weekly Reset* VMIG1/A1+ 3,855,000
Letter of Credit: Key Corporation
Total Ohio 7,880,780
</PAGE>
<PAGE>
OKLAHOMA (0.4%)
Tulsa County Oklahoma Independent School
District No. 001 General Obligation Bonds
500,000 4.80%, 06/01/99 Aaa/AAA 501,312
FGIC Insured
OREGON (2.0%)
County of Multnomah, Tax and Revenue Anticipation
Notes, General Obligation,
1,500,000 4.25%, 06/01/99 MIG1/Spl+ 1,502,140
Portland Oregon General Obligation Bonds,
Series B,
1,145,000 7.00%, 06/30/99 Aaa/NR 1,151,763
Total Oregon 2,653,903
PENNSYLVANIA (1.4%)
Pennsylvania State Higher Education Assistance
Agency Student Loan Revenue Bonds, Series B,
1,800,000 3.10%, 07/01/18, Weekly Reset* VMIG1/A1+ 1,800,000
Letter of Credit: Student Loan Marketing
SOUTH CAROLINA (0.8%)
York County South Carolina Pollution Control
1984 Revenue Bonds-Saluda River
1,000,000 2.75%, 08/15/14, Semi-Annual Reset* NR/AA- 1,000,000
Letter of Credit: National Rural Utilities CFC
TENNESSEE (0.8%)
Metropolitan Government Nashville & Davidson
County General Obligation Bonds
1,000,000 5.25%, 05/15/99 Aa2/AA 1,001,792
TEXAS (8.1%)
Dallas Texas Equipment Acquisition Contractual
General Obligation Bond 1997
1,790,000 4.75%, 02/15/00 Aaa/AAA 1,815,875
El Paso County Texas CTFS Obligation
General Obligation Bonds 1998
FGIC Insured
1,800,000 4.75%, 02/15/00 Aaa/AAA 1,825,568
Gulf Coast Waste Disposal Auth. Texas Environ.
Facilities Revenue Bonds 1998 Amoco Oil Co Proj.
900,000 3.30%, 01/01/26, Daily Reset* VMIG1/AAA 900,000
</PAGE>
<PAGE>
Lower Neches Valley Authority of Texas Revenue
Bonds (Chevron USA Income Project),
1,500,000 2.75%, 02/15/17, Semi-Annual Reset* NR/A1+ 1,500,000
Sabine River Authority Texas Pollution Control Rev
Adj-Ref-Coll-Utils Elec Revenue Bonds 1995
1,000,000 3.35%, 06/01/30, Daily Reset* VMIG1/A1+ 1,000,000
Letter of Credit: Union Bank of Switzerland
Texas State Public Finance Authority 1990
General Obligation Series B, Pre-refunded
1,000,000 6.80%, 10/01/99 VMIG1/NR 1,018,199
U.S. Government Insured
University of Texas 1996 Revenues Bonds
1,000,000 5.00%, 08/15/99 Aa1/AAA 1,006,939
Westide Calhoun County Texas NAV Dist SEW
ADJ-BP Chemicals Inc Proj Revenue Bonds
1,500,000 3.30%, 04/01/31, Daily Reset* Aa2/AA 1,500,000
Total Texas 10,566,581
UTAH (3.1%)
University of Utah Revenue Bonds, (Auxiliary &
Campus Facilities - A),
2,000,000 2.85%, 04/01/27, Weekly Reset* VMIG1/A1+ 2,000,000
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 2,000,796
Letter of Credit: School Board Guarantee
Total Utah 4,000,796
VERMONT (1.8%)
Vermont Municipal Bond Revenue Bonds 1995
Series 2
1,500,000 5.00%, 12/01/99 Aaa/AAA 1,520,481
Vermont State Student Assistance Corp. Revenue
Bonds (Student Loan Revenue),
900,000 3.00%, 01/01/04, Monthly Reset,* Weekly Put* VMIG1/NR 900,000
Letter of Credit: National Westminster
Total Vermont 2,420,481
</PAGE>
<PAGE>
VIRGINIA (1.7%)
Virginia Beach Virginia Public Improvement, Series A,
General Obligation
1,100,000 6.85%, 05/01/99 Aa2/AA 1,102,917
Virginia Beach Public School Auth. SPL Auth
Henrico County School Revenue Bonds 1993
1,060,000 5.10%, 07/15/99 Aaa/AAA 1,066,309
Total Virginia 2,169,226
WASHINGTON (1.5%)
Seattle, WA Water System Revenue Bonds,
1,000,000 3.05%, 09/01/25, Weekly Reset* VMIG1/A1+ 1,000,000
Letter of Credit: Bayerische Landesbank
Spokane Washington G.O. Limited Notes 1999
Bond Anticipation Notes
1,000,000 3.00%, 12/01/99 MIG1/NR 1,000,000
Total Washington 2,000,000
WISCONSIN (1.5%)
Wisconsin State General Obligation, Series G Bonds,
2,000,000 6.30%, 05/01/99 Aa2/AA 2,004,211
Total Wisconsin 2,004,211
Total Investments (cost $130,341,254**) 99.5% 130,341,254
Other assets in excess of liabilities 0.5 642,885
Net Assets 100.0% $ 130,984,139
(*) Variable rate obligation payable at par on demand
at any time on no more than seven days notice.
(**) Cost for Federal tax purposes is identical.
See accompanying notes to financial statements
</TABLE>
</PAGE>
<PAGE>
PACIFIC CAPITAL
U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST
STATEMENT OF INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
FACE
AMOUNT U.S. TREASURY BILLS (1.4%) VALUE
</CAPTION>
<S> <C> <C>
$ 5,000,000 4.27%, 01/06/00 $ 4,833,944
Total U.S. Treasury Bills 4,833,944
U.S. GOVERNMENT AGENCIES (98.9%)
Federal Home Loan Bank (77.8%
187,729,000 4.87%, due 04/01/99 187,729,000
10,000,000 4.74%, due 05/21/99 9,934,167
20,000,000 4.75%, due 06/04/99 19,831,111
6,800,000 5.63%, due 06/15/99 6,811,384
25,000,000 4.75%, due 08/04/99 24,587,674
25,000,000 4.75%, due 09/03/99 24,488,715
2,250,000 5.15%, due 03/08/00 2,250,000
Total Federal Home Loan Bank 275,632,051
Farm Credit Bureau (9.9%)
13,000,000 4.72%, due 04/13/99 12,979,547
10,000,000 4.70%, due 06/01/99 9,920,361
9,500,000 4.35%, due 06/08/99 9,421,942
2,833,000 4.57%, due 10/01/99 2,816,025
Total Farm Credit Bureau 35,137,875
Student Loan Marketing Association (11.2%)
20,000,000 4.72%, due 06/30/99 19,763,950
20,000,000 4.50%, due 08/02/99 19,970,699
Total Student Loan Marketing Association 39,734,649
Total U.S. Government Agencies 350,504,575
Total Investments (cost $355,338,519*) 100.3% 355,338,519
Liabilities in excess of other assets (0.3) (1,177,640)
Net Assets 100.0% $ 354,160,879
(*) Cost for Federal tax purposes is identical.
See accompanying notes to financial statements.
</TABLE>
</PAGE>
<PAGE>
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1999
<TABLE>
<CAPTION>
CASH TAX-FREE GOVERNMENT
FUND FUND FUND
</CAPTION>
ASSETS:
<S> <C> <C> <C> <C>
Investments at value
(cost $496,129,961, $130,341,254 and $355,338,519,
respectively) $496,129,961 $130,341,254 $355,338,519
Repurchase agreements (cost $86,616,000, $-0- and
$-0-, respectively) 86,616,000 - -
Cash 419 21,845 139
Interest receivable 90,880 990,512 264,300
Other assets 9,073 470 11,304
Total Assets 582,846,333 131,354,081 355,614,262
LIABILITIES:
Dividends payable 2,141,062 277,083 1,271,555
Adviser and Administrator fees payable 250,989 44,878 123,551
Distribution fees payable 34,353 9,673 43,911
Accrued expenses 27,636 38,308 14,366
Total Liabilities 2,454,040 369,942 1,453,383
NET ASSETS $580,392,293 $130,984,139 $354,160,879
NET ASSETS CONSIST OF:
Capital Stock - Authorized an unlimited number of shares,
par value $.01 per share $ 5,807,986 $ 1,309,820 $ 3,541,423
Additional paid-in capital 574,990,337 129,674,360 350,601,040
Undistributed net investment income 5,492 - 26,907
Accumulated net realized gain (loss) on investments (411,522) (41) (8,491)
$580,392,293 $130,984,139 $354,160,879
SHARES OF BENEFICIAL INTEREST:
Original Shares Class:
Net Assets $417,749,541 $ 83,425,551 $139,877,871
Shares outstanding 418,234,316 83,424,145 139,867,478
Net asset value per share $1.00 $1.00 $1.00
Service Shares Class:
Net Assets $162,642,752 $ 47,558,588 $214,283,008
Shares outstanding 162,564,234 47,557,904 214,274,847
Net asset value per share $1.00 $1.00 $1.00
</TABLE>
See accompanying notes to financial statements.
</PAGE>
<PAGE>
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
CASH TAX-FREE GOVERNMENT
FUND FUND FUND
</CAPTION>
INVESTMENT INCOME:
<S> <C> <C> <C> <C>
Interest income $ 29,807,709 $ 4,486,608 $ 17,036,936
EXPENSES:
Investment Adviser fees (note 3) 2,072,443 377,975 1,049,559
Administrator fees (note 3) 715,281 149,267 266,270
Distribution fees (note 3) 338,640 116,914 468,352
Trustees' fees and expenses 126,327 60,336 68,428
Legal fees 66,070 19,669 44,566
Registration fees and dues 33,997 8,451 41,854
Shareholders' reports 33,152 6,621 25,048
Fund accounting fees 29,136 28,246 29,349
Transfer and shareholder servicing agent fees 24,887 25,019 33,678
Audit and accounting fees 15,500 14,150 14,300
Insurance 8,505 1,813 5,010
Custodian fees 7,538 13,256 8,169
Miscellaneous 17,568 5,322 39,551
Total expenses 3,489,044 827,039 2,094,134
Expenses paid indirectly (note 6) (4,785) (5,840) (66)
Net expenses 3,484,259 821,199 2,094,068
Net investment income 26,323,450 3,665,409 14,942,868
Net realized gain (loss) from securities transactions 219,878 164 (8,032)
Net increase in net assets resulting from operations $ 26,543,328 $ 3,665,573 $ 14,934,836
</TABLE>
See accompanying notes to financial statements.
</PAGE>
<PAGE>
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CASH FUND TAX-FREE FUND GOVERNMENT FUND
YEAR ENDED MARCH 31, YEAR ENDED MARCH 31, YEAR ENDED MARCH 31,
1999 1998 1999 1998 1999 1998
</CAPTION>
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 26,323,450 $ 24,566,804 $ 3,665,409 $ 2,949,543 $ 14,942,868 $ 8,897,324
Net realized gain (loss)
from securities transactions 219,878 89,803 164 (205) (8,032) 17,031
Net increase in net assets
resulting from operations 26,543,328 24,656,607 3,665,573 2,949,338 14,934,836 8,914,355
DIVIDENDS TO SHAREHOLDERS
FROM NET INVESTMENT INCOME:
Original Shares (20,213,192) (20,260,825) (2,429,740) (2,237,687) (6,660,794) (3,695,429)
Service Shares (6,110,258) (4,305,979) (1,235,669) (711,856) (8,282,074) (5,201,895)
Total dividends to shareholders
from net investment income (26,323,450) (24,566,804) (3,665,409) (2,949,543) (14,942,868) (8,897,324)
CAPITAL SHARE TRANSACTIONS
(at $1.00 per share):
Proceeds from shares sold:
Original Shares 1,391,409,673 1,215,049,334 179,018,803 145,166,331 507,780,125 323,059,102
Service Shares 393,617,033 287,984,097 115,791,206 66,068,395 1,014,867,768 858,192,771
1,785,026,706 1,503,033,431 294,810,009 211,234,726 1,522,647,893 1,181,251,873
Reinvested dividends and
distributions:
Original Shares 124,236 122,396 105,339 116,145 59,163 60,052
Service Shares 6,031,200 4,084,240 1,211,951 699,548 8,074,146 4,985,493
6,155,436 4,206,636 1,317,290 815,693 8,133,309 5,045,545
Cost of shares redeemed:
Original Shares (1,392,720,503) (1,217,844,005) (172,261,157) (159,715,064) (468,776,126) (288,014,215)
Service Shares (350,487,018) (244,416,529) (106,556,540) (55,172,286) (958,541,263) (796,725,850)
(1,743,207,521) (1,462,260,534) (278,817,697) (214,887,350) (1,427,317,389)(1,084,740,065)
Change in net assets
from capital share transactions 47,974,621 44,979,533 17,309,602 (2,836,931) 103,463,813 101,557,353
Total increase (decrease)
in net assets 48,194,499 45,069,336 17,309,766 (2,837,136) 103,455,781 101,574,384
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 $ 580,392,293 $ 532,197,794 $ 130,984,139 $ 113,674,373 $ 354,160,879 $250,705,098
</TABLE>
See accompanying notes to financial statements.
</PAGE>
<PAGE>
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
NOTES TO FINANCIAL STATEMENTS
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. 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.
</PAGE>
<PAGE>
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 year ended March
31, 1999, the Fund incurred fees under the Advisory Agreement and the
Administration Agreement of $2,072,443 and $715,281, respectively.
</PAGE>
<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 year
ended March 31, 1999, the Fund incurred fees under the Advisory Agreement and
the Administration Agreement of $377,975 and $149,267, 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 year ended March 31, 1999, the Fund incurred fees under the Advisory
Agreement and the Administration Agreement of $1,049,559 and $266,270,
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 year ended March 31, 1999.
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.
</PAGE>
<PAGE>
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.
At March 31, 1999, the Cash Fund had a capital loss carryover of
approximately $411,500 which expires on March 31, 2003. This amount is
available to offset future net realized gains on securities transactions to
the extent provided for in the Internal Revenue Code and it is probable the
gains so offset will not be distributed.
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. EXPENSES
The Funds have negotiated an expense offset arrangement with their
custodian, wherein they receive credit toward the reduction of custodian fees
and other expenses whenever there are uninvested cash balances. The
Statements of Operations reflect the total expenses before any offset, the
amount of offset and the net expenses. It is 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.
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.
</PAGE>
<PAGE>
PACIFIC CAPITAL
CASH ASSETS TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SERVICE SHARES(1) ORIGINAL SHARES(2)
PERIOD
YEAR ENDED MARCH 31, ENDED YEAR ENDED MARCH 31,
1999 1998 1997 1996 3/31/95** 1999 1998 1997 1996 1995
</CAPTION>
<S> <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
Income from Investment Operations:
Net investment income 0.05 0.05 0.05 0.05 0.01 0.05 0.05 0.05 0.05 0.04
Less Distributions:
Dividends from net investment
income (0.05) (0.05) (0.05) (0.05) (0.01) (0.05) (0.05) (0.05) (0.05) (0.04)
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total Return (%) 4.64 4.88 4.62 5.06 0.85+ 4.90 5.15 4.88 5.32 4.40
Ratios/Supplemental Data
Net Assets, End of Period
($ millions) 162.6 113.4 65.8 32.9 3.5 417.7 418.8 421.4 308.7 486.7
Ratio of Expenses to Average Net
Assets (%) 0.81 0.83 0.85 0.86 0.83* 0.57 0.58 0.60 0.61 0.59
Ratio of Net Investment Income to
Average Net Assets (%) 4.51 4.77 4.53 4.84 5.26* 4.79 5.03 4.78 5.23 4.40
For periods after April 1, 1995, the expense ratios after giving effect to
the expense offset for uninvested cash balances were:
Ratio of Expenses to Average Net
Assets (%) 0.81 0.82 0.85 0.86 0.56 0.57 0.60 0.60
</TABLE>
(1) New class of shares established on January 20, 1995.
(2) Designated as the "Original Shares" class of shares on January 20, 1995.
** For the period from February 1, 1995 (commencement of operations) to
March 31, 1995.
+ Not annualized.
* Annualized.
See accompanying notes to financial statements.
</PAGE>
<PAGE>
PACIFIC CAPITAL
TAX-FREE CASH ASSETS TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SERVICE SHARES(1) ORIGINAL SHARES(2)
PERIOD
YEAR ENDED MARCH 31, ENDED YEAR ENDED MARCH 31,
1999 1998 1997 1996 3/31/95** 1999 1998 1997 1996 1995
</CAPTION>
<S> <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
Income from Investment Operations:
Net investment income 0.03 0.03 0.03 0.03 0.01 0.03 0.03 0.03 0.03 0.03
Less Distributions:
Dividends from net investment
income (0.03) (0.03) (0.03) (0.03) (0.01) (0.03) (0.03) (0.03) (0.03) (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 $1.00
Total Return (%) 2.65 2.83 2.75 3.11 0.52+ 2.91 3.08 3.00 3.37 2.74
Ratios/Supplemental Data
Net Assets, End of Period
($ millions) 47.6 37.1 25.5 17.6 1.4 83.4 76.6 91.0 125.2 138.3
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
Ratio of Net Investment Income to
Average Net Assets (%) 2.64 2.79 2.70 2.97 3.22* 2.85 3.04 2.97 3.32 2.74
For periods after April 1, 1995, the expense ratios after giving effect to
the expense offset for uninvested cash balances were:
Ratio of Expenses to Average Net
Assets (%) 0.78 0.88 0.80 0.80 0.53 0.63 0.55 0.54
</TABLE>
(1) New class of shares established on January 20, 1995.
(2) Designated as the "Original Shares" class of shares on January 20, 1995.
** For the period from February 1, 1995 (commencement of operations) to
March 31, 1995.
+ Not annualized.
* Annualized.
See accompanying notes to financial statements.
</PAGE>
<PAGE>
PACIFIC CAPITAL
U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SERVICE SHARES(1) ORIGINAL SHARES(2)
PERIOD
YEAR ENDED MARCH 31, ENDED YEAR ENDED MARCH 31,
1999 1998 1997 1996 3/31/95** 1999 1998 1997 1996 1995
</CAPTION>
<S> <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
Income from Investment Operations:
Net investment income 0.04 0.05 0.04 0.05 0.01 0.04 0.05 0.05 0.05 0.04
Less Distributions:
Dividends from net investment
income (0.04) (0.05) (0.04) (0.05) (0.01) (0.04) (0.05) (0.05) (0.05) (0.04)
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total Return (%) 4.54 4.69 4.50 4.94 0.94+ 4.80 4.95 4.76 5.20 4.20
Ratios/Supplemental Data
Net Assets, End of Period
($ millions) 214.2 149.9 83.4 11.8 0.5 139.9 100.8 65.7 74.0 64.0
Ratio of Expenses to Average Net
Assets (%) 0.74 0.77 0.80 0.80 0.85* 0.49 0.52 0.56 0.55 0.54
Ratio of Net Investment Income to
Average Net Assets (%) 4.42 4.60 4.42 4.67 5.09* 4.70 4.85 4.65 5.06 4.04
The expense and net investment income ratios without the effect of the
Adviser's and Administrator's voluntary waiver of fees for periods prior to
April 1, 1996 were:
Ratio of Expenses to Average Net
Assets (%) - - - 0.88 0.98* - - - 0.63 0.59
Ratio of Net Investment Income to
Average Net Assets (%) - - - 4.59 4.96* - - - 4.98 3.99
The expense ratios after giving effect to the waivers and the expense offset
for uninvested cash balances (for periods after April 1, 1995) were:
Ratio of Expenses to Average Net
Assets (%) 0.74 0.77 0.79 0.79 0.49 0.52 0.55 0.54
</TABLE>
(1) New class of shares established on January 20, 1995.
(2) Designated as the "Original Shares" class of shares on January 20, 1995.
** For the period from February 1, 1995 (commencement of operations) to
March 31, 1995.
+ Not annualized.
* Annualized.
See accompanying notes to financial statements.
</PAGE>
<PAGE>
FEDERAL TAX STATUS OF DISTRIBUTIONS
This information is presented in order to comply with a
requirement of the Internal Revenue Code AND NO CURRENT ACTION ON THE PART OF
SHAREHOLDERS IS REQUIRED.
For the fiscal year ended March 31, 1999, the Federal tax status
of the total amount of dividends paid by each of the investment portfolios
comprising Cash Assets Trust is as follows:
FUND FEDERAL TAX STATUS
Pacific Capital Cash Assets Trust Ordinary dividend income
Pacific Capital Tax-Free Cash Assets Trust Exempt-interest dividends
Pacific Capital U.S. Government Securities
Cash Assets Trust Ordinary dividend income
Prior to January 31, 1999, shareholders were mailed IRS Form
1099-DIV which contained information on the status of distributions paid for
the 1998 CALENDAR YEAR.
</PAGE>
<PAGE>
PREPARING FOR YEAR 2000 (UNAUDITED)
The Trustees and officers of the Trust have been monitoring
issues involving preparedness for the turn of the century for some time in an
effort to minimize or eliminate any potential impact upon the Trust and its
shareholders. Our officers have focussed significant time and effort in order
that the various computerized functions that could affect the Trust are ready
by the beginning of the year 2000.
The Trust is highly reliant on certain mission-critical
suppliers' services. Each supplier of these services has provided the Trust's
officers with assurances that it is actively addressing potential problems
relating to the year 2000. The officers, in turn, are monitoring and will
continue to monitor the progress of its suppliers.
As you can well understand, we cannot directly control our
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 Trust will be
significantly affected by year 2000 problems.
We will continue to keep you up-to-date through future
communications.
</PAGE>
