<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
757 Third Avenue * New York, New York 10017
Further information is contained in the Prospectus
which must precede or accompany this report.
ANNUAL
REPORT
MARCH 31, 2000
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 twisted 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 twisted rope]
THE PACIFIC CAPITAL FUNDS
OF
CASH ASSETS TRUST
ANNUAL REPORT
May 8, 2000
Dear Investor:
We are pleased to provide you with the Annual Report for The Pacific
Capital Funds of Cash Assets Trust for the fiscal year ended March 31, 2000.
The enclosed 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.
Since our last report letter to shareholders in the fall of 1999, the
Federal Reserve voted to raise short-term interest rates from 5.25% to 6.00%.
The Fed's action resulted from strong global and domestic economic conditions
and the implied threat of a rising level of inflation. The Fed is concerned that
with a strong economy and low unemployment, inflation would worsen as the
increased stress on labor markets would potentially put additional upward
pressure on wages and ultimately prices.
The Fed is determined to keep inflation under control and higher interest
rates should eventually slow economic growth.
Led by a surge in consumer spending that was fueled by high employment and
rising incomes, the U.S. economy grew 4.2% during 1999. Notwithstanding the
economy's torrid growth and the impressive employment outlook, the low level of
inflation during 1999 advanced at a rate slightly higher than the previous two
years, but less than the average inflation rate for the 1990s. So far this year,
the economy also remains exceptionally strong (now in the ninth year of record
uninterrupted expansion) while inflation, although higher, remains under
control.
With the possibility of further interest rate increases in the offing, each
of the Trust's investment portfolios is well positioned to continually attract
higher and competitive rates of return. Looking forward, we are optimistic that
The Pacific Capital Funds of Cash Assets Trust will continue to provide
investors attractive yields compared to alternative money market investments.
Through alertness to market opportunities, the Trust can produce a highly
competitive return for its investors without compromising safety.
We wish to thank you for the continued support and confidence you have
placed in The Pacific Capital Funds of Cash Assets Trust. You can be assured
that all those associated with the management of the Trust will consistently
work in the interest of your investment.
Sincerely,
/s/ Diana P. Herrmann
----------------------
Diana P. Herrmann
President
/s/ Lacy B. Herrmann
---------------------
Lacy B. Herrmann
Chairman,
Board of Trustees
</PAGE>
<PAGE>
[Logo of KPMG LLP: four solid rectangles with the letters KPMG in white 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, 2000, and the related statements of operations for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financia l 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 and financial highlights. Our procedures included confirmation of
securities owned as of March 31, 2000, 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, 2000, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended, and the financial highlights for each of the five years in the
period then ended, in conformity with generally accepted accounting principles.
KPMG LLP
New York, New York
May 2, 2000
</PAGE>
<PAGE>
PACIFIC CAPITAL
CASH ASSETS TRUST
STATEMENT OF INVESTMENTS
MARCH 31, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT U.S. GOVERNMENT AGENCY DISCOUNT NOTES (11.4%) VALUE
</CAPTION>
<S> <C> <C> <C>
$ 3,927,000 Federal Home Loan Bank, 5.75%, 4/03/00 $ 3,925,746
30,000,000 Federal Home Loan Bank, 5.50%, 4/06/00 29,977,083
45,000,000 Federal National Mortgage Assoc., 5.80%, 7/13/00 44,253,250
Total U.S. Government Agency Discount Notes 78,156,079
CERTIFICATE OF DEPOSIT (2.2%)
15,000,000 Deutsche Bank, Floating Rate Note, 6.31%, 4/1/00 14,996,449
COMMERCIAL PAPER (62.8%)
AUTOMOTIVE (4.3%)
30,000,000 Ford Motor Credit Co., 5.80%, 5/25/00 29,739,000
BANKING/CREDIT UNION (3.5%)
5,000,000 Banca Serfin, 6.00%, 6/09/00, 4,942,500
LOC - Barclays Bank PLC
19,350,000 Banca Serfin, 6.00%, 6/12/00, 19,117,800
LOC - Barclays Bank PLC
Total Banking/Credit Union 24,060,300
BROKERAGE (19.4%)
20,000,000 Bear Stearns & Co., 5.99%, 8/08/00 19,570,717
30,000,000 Goldman Sachs, 6.04%, 7/26/00 29,416,133
25,000,000 Merrill Lynch & Co., Inc., 5.90%, 5/30/00 24,758,264
30,000,000 Morgan Stanley Dean Witter, 6.05%, 5/03/00 29,838,667
30,000,000 Salomon Smith Barney, 5.87%, 4/28/00 29,867,925
Total Brokerage 133,451,706
CHEMICALS (3.5%)
25,000,000 Dupont (E.I.) de Nemours & Co., 6.04%, 10/16/00 24,169,500
EDUCATION (10.4%)
30,000,000 Harvard University, 5.74%, 4/18/00 29,918,683
12,000,000 Stanford University, 5.75%, 4/12/00 11,978,917
30,000,000 Yale University, 5.85%, 5/01/00 29,853,708
Total Education 71,751,308
</PAGE>
<PAGE>
ELECTRIC UTILITY (4.4%)
30,000,000 National Rural Utilities, 5.83%, 4/13/00 29,941,700
FINANCE (13.0%)
30,000,000 American Express Credit Corp., 5.87%, 4/10/00 29,955,975
30,000,000 Associates First Capital, 5.93%, 5/31/00 29,703,500
30,000,000 General Electric Capital Corp., 5.87%, 4/26/00 29,877,708
Total Finance 89,537,183
INSURANCE (4.3%)
30,000,000 Prudential, 5.91%, 8/10/00 29,354,825
Total Commercial Paper 432,005,522
CORPORATE NOTES (2.2%)
15,000,000 Peoples Benefit Life, Variable Rate Note, 6.05%, 7/01/00 (1) 15,000,000
REPURCHASE AGREEMENTS (21.8%)
150,000,000 SG Cowen, 6.15%, due 4/03/00 150,000,000
(Proceeds of $150,076,875 to be received at maturity)
Collateral:$153,520,000 U.S. Treasury Bill due 4/20/00
Collateral Market Value $153,000,000
Total Investments (cost $690,158,050*) 100.4% 690,158,050
Liabilities in excess of other assets (0.4) (2,826,410)
Net Assets 100.0% $ 687,331,640
</TABLE>
(*) 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, 2000
<TABLE>
<CAPTION>
RATING
FACE MOODY'S/
AMOUNT BONDS AND NOTES (96.81%) S&P VALUE
</CAPTION>
<S> <C> <C> <C> <C> <C>
FLORIDA (1.36%)
Jacksonville, Electric Authority Revenue Bonds,
Series 4-1-A
$ 2,000,000 6.75%, 10/01/00 Aa+/AA $ 2,058,317
GEORGIA (0.66%)
Columbus, Georgia Water and Sewer Service
1,000,000 5.75%, 5/01/00 Aaa/AAA 1,001,796
HAWAII (44.93%)
Hawaii County
500,000 7.00%, 6/01/00 Aaa/AAA 502,882
Hawaii County
2,270,000 4.25%, 5/15/00 Aaa/AAA 2,270,794
Hawaii State, Airport Revenue Bonds
2,000,000 6.20%, 7/01/00 Aaa/AAA 2,010,433
Insurance: Municipal Bond Insurance Assoc.
Hawaii State, General Obligation Bonds
1,005,000 4.50%, 9/01/00 Aaa/AAA 1,008,455
Hawaii State, General Obligation Bonds, Series BR
2,000,000 7.00%, 6/01/09 AAA/A+ 2,011,559
Hawaii State, General Obligation Bonds, Series BR
1,000,000 6.90%, 6/01/02 AAA/A+ 1,005,917
Hawaii State, General Obligation Bonds, Series BR
620,000 5.35%, 6/01/00 AAA/A+ 621,814
Hawaii State, General Obligation Bonds, Series BT
1,000,000 6.125%, 2/01/08 AAA/A+ 1,023,983
Hawaii State, General Obligation Bonds, Series BT
1,300,000 6.00%, 2/01/03 AAA/A+ 1,332,379
Hawaii State, General Obligation Bonds, Series BT
100,000 6.00%, 2/01/02 AAA/A+ 102,286
Hawaii State, General Obligation Bonds, Series BU
1,750,000 7.25%, 11/01/00 A1/A+ 1,779,675
Hawaii State, General Obligation Bonds, Series BU
1,000,000 7.25%, 11/01/00 Aaa/AAA 1,018,404
</PAGE>
<PAGE>
Hawaii State, General Obligation Bonds, Series CA
2,500,000 5.125%, 1/01/01 A1/A+ 2,516,796
Hawaii State, General Obligation Bonds, Series CD
2,000,000 4.70%, 2/01/01 A1/A+ 2,005,756
Hawaii State, General Obligation Bonds, Series CL
2,000,000 4.50%, 3/01/01 Aaa/AAA 2,003,478
Hawaii State, Harbor Revenue Bonds, Series A
2,000,000 4.50%, 7/01/00 A1/A+ 1,999,960
Hawaii State, Department of Budget & Finance
ADJ-Queens Health System - Series A 1998
Revenue Bonds
18,860,000 3.95%, 7/01/26, Weekly Reset* VMIG1/A-1+ 18,860,000
Stand-by Purchase Agreement: Morgan
Guaranty Trust
Hawaii State Highway Revenue Bonds
400,000 4.00%, 7/01/00 Aaa/AAA 399,891
Hawaii State Housing Finance & Development Corp.
Revenue Bonds (Rental Housing System)
Series 89 A,
1,800,000 3.85%, 7/01/24, Weekly Reset* VMIG1/NR 1,800,000
Letter of Credit: Banque Nationale de Paris
Hawaii State Housing Finance & Development Corp.
Revenue Bonds (Affordable Rental Housing
Program) Series A,
7,450,000 4.00%, 7/01/27, Weekly Reset* VMIG1/NR 7,450,000
Letter of Credit: Banque Nationale de Paris
Honolulu City & County, General Obligation
Bonds, Series A,
5,315,000 6.00%, 4/01/00 Aaa/AA- 5,315,000
Honolulu City & County, General Obligation Bonds,
Series B,
1,350,000 4.70%, 10/01/00 Aa3/AA- 1,353,429
Honolulu City & County, General Obligation Bonds,
Series C,
1,000,000 6.80%, 6/01/09 Aaa/AA- 1,016,156
</PAGE>
<PAGE>
Honolulu City & County, General Obligation
Bonds, Series D,
1,000,000 6.50%, 12/01/00 Aaa/AA- 1,014,001
Honolulu City & County, General Obligation Bonds,
Series HI,
2,400,000 6.90%, 12/01/08 Aaa/AA- 2,469,205
Secondary Market Sevices Corporation Hawaii
Student Loan Revenue, Senior Series II,
5,000,000 4.00%, 9/01/10, Weekly Reset* VMIG1/A-1+ 5,000,000
Letter of Credit: National Westminster,
Guaranteed Student Loans
Total Hawaii 67,892,253
IDAHO (4.14%)
Idaho Health Facilities Authority Revenue Bonds
(St. Lukes Regional Medical Center Project),
6,260,000 4.00%, 05/01/22, Daily Reset* VMIG1/NR 6,260,000
Letter of Credit: Bayerische Landesbank
ILLINOIS (6.54%)
Illinois Health Facilities Authority Revenue Bonds
(Central Dupage Health Corp. Project)
7,130,000 4.05%, 11/01/20, Daily Reset* VMIG1/NR 7,130,000
Letter of Credit: Rabobank Nederland
Illinois State, General Obligation
1,000,000 6.70%, 6/01/03 Aa2/AAA 1,024,569
Madison County, IL Revenue Bonds
930,000 4.05%, 4/01/32, Daily Reset* Aa1/AAA 930,000
Southwestern, IL Development Authority Environmental
Improvement Revenue Bonds (Shell Oil Co. Project)
800,000 4.05%, 11/01/25, Daily Reset* VMIG1/A-1+ 800,000
Total Illinois 9,884,569
INDIANA (7.21%)
Indianapolis, IN Economic Development Revenue
Bonds (Jewish Federation Campus),
4,670,000 3.90%, 4/01/05, Weekly Reset* Aa/AA 4,670,000
</PAGE>
<PAGE>
Purdue University, IN University Revenue Bonds
(Student Fee) Series K,
1,115,000 3.80%, 7/01/20, Weekly Reset* VMIG1/A-1+ 1,115,000
Purdue University, IN University Revenue Bonds
(Student Fee) Series L,
700,000 3.80%, 7/01/20, Weekly Reset* VMIG1/A-1+ 700,000
Purdue University, IN University Revenue Bonds
(Student Fee) Series O,
1,625,000 3.80%, 7/01/19, Weekly Reset* VMIG1/A-1+ 1,625,000
Purdue University, IN University Revenue Bonds
(Student Fee) Series H,
1,785,000 3.80%, 7/01/17, Weekly Reset* VMIG1/A-1+ 1,785,000
Purdue University, IN University Revenue Bonds
(Student Fee) Series E,
1,005,000 3.80%, 7/01/11, Weekly Reset* VMIG1/A-1+ 1,005,000
Total Indiana 10,900,000
KENTUCKY (1.50%)
Kentucky State, Turnpike Authority Revenue Bond
500,000 7.25%, 5/15/10 Aaa/AAA 509,491
Warsaw, KY Industrial Building Revenue Bonds
(Operating Partnership)
1,760,000 4.05%, 8/01/09, Weekly Reset* NR/A-1+ 1,760,000
Letter of Credit: Fifth Third Bank
Total Kentucky 2,269,491
LOUISIANA (2.05%)
St. Charles Parish, LA Pollution Control Revenue
Bonds (Shell Oil CO-Norco Project),
2,100,000 4.05%, 9/01/23, Daily Reset* Aa2/AAA 2,100,000
St. Charles Parish, LA Pollution Control Revenue
Bonds (Shell Oil CO-Norco Project),
1,000,000 4.05%, 10/01/22, Daily Reset* Aa2/AAA 1,000,000
Total Louisiana 3,100,000
</PAGE>
<PAGE>
MASSACHUSETTS (1.72%)
Massachusetts State, General Obligation Bonds,
2,600,000 3.80%, 9/01/16, Weekly Reset* Aa3/AA- 2,600,000
MINNESOTA (4.66%)
Cohasset, MN Revenue Bonds, Series A (Minnesota
Power & Light Co. Project)
3,600,000 4.00%, 6/01/20, Daily Reset NR/AA+ 3,600,000
Letter of Credit: ABN Amro Bank
Cohasset, MN Revenue Bonds, Series B (Minnesota
Power & Light Co. Project)
1,650,000 4.00%, 6/01/13, Daily Reset* NR/AA+ 1,650,000
Letter of Credit: ABN Amro Bank
Cohasset, MN Revenue Bonds, Series A (Minnesota
Power & Light Co. Project)
285,000 3.85%, 12/01/07, Weekly Reset* NR/AA+ 285,000
Letter of Credit: ABN Amro Bank
Minneapolis, MN, General Obligation Bonds,
1,505,000 3.75%, 12/01/04, Daily Reset* Aaa/AAA 1,505,000
Total Minnesota 7,040,000
NEW MEXICO (0.79%)
Albuquerque, NM Airport Revenue Bonds, Series A
1,200,000 3.90%, 7/01/17, Weekly Reset* VMIG1/A-1+ 1,200,000
Letter of Credit: Bayerische Landesbank
NEW YORK (1.74%)
New York, NY Municipal Water Finance Authory
Water & Sewer System Revenue Bonds, Series A,
1,500,000 3.90%, 6/15/25, Daily Reset* VMIG1/A-1+ 1,500,000
Letter of Credit: Financial Guaranty Insurance
Corporation
New York, General Obligation, Series B
1,125,000 3.35%, 10/01/21, Daily Reset* VMIG1/A-1+ 1,125,000
Total New York 2,625,000
</PAGE>
<PAGE>
NORTH CAROLINA (2.90%)
Durham County, NC General Obligation Bonds,
(Public Improvement Project)
2,975,000 3.85%, 2/01/11, Weekly Reset* VMIG1/A-1+ 2,975,000
Letter of Credit: Wachovia Bank
Durham County, NC General Obligation Bonds,
(Public Improvement Project)
1,400,000 3.85%, 2/01/09, Weekly Reset* VMIG1/A-1+ 1,400,000
Letter of Credit: Wachovia Bank
Total North Carolina 4,375,000
OHIO (0.68%)
Franklin County, OH Revenue Bond
1,000,000 7.50%, 5/15/10 Aaa/AAA 1,024,108
OREGON (0.66%)
Oregon State, General Obligation
1,000,000 3.45%, 6/29/00 Aa2/MIG1 1,000,000
PENNSYLVANIA (1.19%)
Pennsylvania State Higher Education Assistance
Agency Student Loan Revenue Bonds, Series B
1,800,000 3.95%, 7/01/18, Weekly Reset* VMIG1/A-1+ 1,800,000
Letter of Credit: Student Loan Marketing
TENNESSEE (1.32%)
Shelby County, Series A
1,000,000 4.65%, 4/01/00 Aa3/AA+ 1,000,000
Tennessee State, General Obligation
1,000,000 4.00%, 5/01/00 Aaa/AAA 1,000,696
Total Tennessee 2,000,696
TEXAS (8.35%)
Gulf Coast Waste Disposal
2,300,000 4.05%, 7/01/27, Daily Reset* Aa1/AAA 2,300,000
Gulf Coast Waste Disposal
1,600,000 4.05%, 1/01/26, Daily Reset* Aa1/AAA 1,600,000
Texas State
2,000,000 6.00%, 8/01/00 Aaa/AAA 2,015,850
</PAGE>
<PAGE>
Tyler Waterworks & Sewer Revenue
1,000,000 4.25%, 9/01/00 Aaa/AAA 1,001,805
Lower Neches Valley Authority of Texas Revenue
Bonds (Chevron USA Income Project)
1,500,000 3.95%, 2/15/17 NR/A1+ 1,500,000
Texas State Tax Revenue
2,000,000 4.50%, 8/31/00 VMIG1/SP1+ 2,006,421
Westside Calhoun County, Sewer & Solid Waste
2,200,000 4.05%, 4/01/31, Daily Reset* Aa2/AA 2,200,000
Total Texas 12,624,076
UTAH (0.99%)
University of Utah Revenue Bonds, (Auxiliary &
Campus Facilities - A),
1,500,000 3.85%, 4/01/27, Weekly Reset* VMIG1/A-1+ 1,500,000
Letter of Credit: Bank of Nova Scotia
WASHINGTON (1.39%)
Seattle, WA Water System Revenue Bonds,
1,000,000 3.85%, 9/01/25, Weekly Reset* VMIG1/A-1+ 1,000,000
Letter of Credit: Bayerische Landesbank
Washington State Health Care Facility Authority
(Fred Hutchinson Cancer Research Center, Seattle)
Series 1991-A,
1,100,000 4.10%, 1/01/29, Daily Reset* VMIG1/NR 1,100,000
Total Washington 2,100,000
WEST VIRGINIA (0.67%)
West Virginia School Building Revenue Bonds
1,000,000 6.00%, 7/01/20 Aaa/AAA 1,005,026
WISCONSIN (1.36%)
Milwaukee, General Obligation
1,000,000 5.00%, 2/01/01 Aa1/AA+ 1,007,445
Wisconsin Public Water Revenue Bonds
1,000,000 7.40%, 7/01/20 Aaa/AAA 1,028,032
Total Wisconsin 2,035,477
Total Bonds and Notes 146,295,809
</PAGE>
<PAGE>
TAX-FREE COMMERCIAL PAPER (3.98%)
HAWAII (3.98%)
Hawaii Department of Budget and Finance
2,810,000 3.90%, 4/03/00 NR/A1+ 2,810,000
Hawaii Department of Budget and Finance
3,200,000 3.85%, 4/03/00 NR/A1+ 3,200,000
Total Commercial Paper 6,010,000
Total Investments (cost $152,305,809**) 100.79% 152,305,809
Liabilities in excess of other assets (0.79) (1,189,685)
Net Assets 100.00% $ 151,116,124
</TABLE>
(*) 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
</PAGE>
<PAGE>
PACIFIC CAPITAL
U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST
STATEMENT OF INVESTMENTS
MARCH 31, 2000
FACE
AMOUNT U.S. GOVERNMENT AGENCIES (100.5%) VALUE
FEDERAL HOME LOAN BANK OVERNIGHTS (39.3%)
$180,410,000 6.00%, due 4/03/00 $180,349,869
FEDERAL HOME LOAN BANK (44.8%)
5,000,000 4.77%, due 4/10/00 4,994,038
20,000,000 5.87%, due 4/17/00 19,947,822
10,000,000 5.73%, due 4/18/00 9,972,942
30,000,000 5.91%, due 4/19/00 29,911,350
35,000,000 5.93%, due 4/24/00 34,867,399
7,000,000 5.71%, due 4/28/00 6,970,022
15,000,000 5.79%, due 5/24/00 14,872,137
15,000,000 5.95%, due 6/09/00 14,828,937
20,000,000 5.94%, due 6/21/00 19,732,700
15,000,000 5.87%, due 8/09/00 14,682,042
15,000,000 5.97%, due 9/08/00 14,602,000
15,000,000 6.10%, due 9/22/00 14,557,750
6,000,000 5.99%, due 1/18/01 5,708,487
Total Federal Home Loan Bank 205,647,626
FARM CREDIT BUREAU (16.4%)
25,000,000 5.68%, due 4/04/00 24,988,167
22,600,000 5.75%, due 4/28/00 22,502,537
13,221,000 4.98%, due 5/18/00 13,134,955
10,000,000 6.14%, due 9/12/00 9,720,289
5,000,000 6.01%, due 11/27/00 4,799,667
Total Farm Credit Bureau 75,145,615
Total U.S. Government Agencies 461,143,110
Total Investments (cost $461,143,110*) 100.5% 461,143,110
Liabilities in excess of other assets (0.5) (2,148,998)
Net Assets 100.0% $458,994,112
(*) Cost for Federal tax purposes is identical.
See accompanying notes to financial statements.
</PAGE>
<PAGE>
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2000
<TABLE>
<CAPTION>
CASH TAX-FREE GOVERNMENT
FUND FUND FUND
</CAPTION>
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments at value
(cost $540,158,050, $152,305,809 and $461,143,110,
respectively) $540,158,050 $152,305,809 $461,143,110
Repurchase agreements (cost $150,000,000, $-0- and
$-0-, respectively) 150,000,000 - -
Cash 487 5,495 84
Interest receivable 222,866 1,300,260 -
Other assets 6,576 341 221
Total Assets 690,387,979 153,611,905 461,143,415
LIABILITIES:
Dividends payable 2,735,387 401,365 1,917,934
Payable for investment securities purchased - 2,002,460 -
Adviser and Administrator fees payable 253,622 49,937 147,501
Distribution fees payable 36,929 10,330 53,696
Accrued expenses 30,401 31,689 30,172
Total Liabilities 3,056,339 2,495,781 2,149,303
NET ASSETS $687,331,640 $151,116,124 $458,994,112
NET ASSETS CONSIST OF:
Capital Stock - Authorized an unlimited number of shares,
par value $.01 per share $ 6,877,036 $ 1,511,140 $ 4,589,771
Additional paid-in capital 680,826,318 149,605,025 454,387,459
Accumulated net realized loss on investments (377,206) (41) (10,025)
Undistributed net investment income 5,492 - 26,907
$687,331,640 $151,116,124 $458,994,112
SHARES OF BENEFICIAL INTEREST:
Original Shares Class:
Net Assets $512,956,739 $100,420,704 $165,688,234
Shares outstanding 513,418,040 100,419,299 165,678,409
Net asset value per share $1.00 $1.00 $1.00
Service Shares Class:
Net Assets $174,374,901 $ 50,695,420 $293,305,878
Shares outstanding 174,285,542 50,694,736 293,298,683
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, 2000
<TABLE>
<CAPTION>
CASH TAX-FREE GOVERNMENT
FUND FUND FUND
</CAPTION>
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 31,279,787 $ 4,537,193 $ 19,436,070
EXPENSES:
Investment Adviser fees (note 3) 2,185,236 378,127 1,190,224
Administrator fees (note 3) 733,644 149,300 296,108
Distribution fees (note 3) 447,845 113,617 594,837
Trustees' fees and expenses 150,891 54,634 112,181
Legal fees 57,516 15,436 41,723
Shareholders' reports 34,582 5,775 21,407
Fund accounting fees 29,456 27,920 29,641
Registration fees and dues 28,627 6,398 41,860
Transfer and shareholder servicing agent fees 26,021 23,811 29,233
Insurance 24,652 4,575 15,050
Audit and accounting fees 15,250 13,150 14,050
Custodian fees 6,098 3,824 4,731
Miscellaneous 3,780 2,682 24,706
Total expenses 3,743,598 799,249 2,415,751
Expenses paid indirectly (note 6) (569) (2,440) (600)
Net expenses 3,743,029 796,809 2,415,151
Net investment income 27,536,758 3,740,384 17,020,919
Net realized gain (loss) from securities transactions 34,316 - (1,535)
Net increase in net assets resulting from operations $ 27,571,074 $ 3,740,384 $ 17,019,384
</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,
2000 1999 2000 1999 2000 1999
</CAPTION>
<S><C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 27,536,758 $ 26,323,450 $ 3,740,384 $ 3,665,409 $ 17,020,919 $ 14,942,868
Net realized gain (loss)
from securities transactions 34,316 219,878 - 164 (1,535) (8,032)
Net increase in net assets
resulting from operations 27,571,074 26,543,328 3,740,384 3,665,573 17,019,384 14,934,836
DIVIDENDS TO SHAREHOLDERS
FROM NET INVESTMENT INCOME:
Original Shares (19,411,107) (20,213,192) (2,530,922) (2,429,740) (6,323,047) (6,660,794)
Service Shares (8,125,651) (6,110,258) (1,209,462) (1,235,669) (10,697,872) (8,282,074)
Total dividends to shareholders
from net investment income (27,536,758) (26,323,450) (3,740,384) (3,665,409) (17,020,919) (14,942,868)
CAPITAL SHARE TRANSACTIONS
(at $1.00 per share):
Proceeds from shares sold:
Original Shares 1,186,795,291 1,391,409,673 168,207,597 179,018,803 427,019,622 507,780,125
Service Shares 377,884,308 393,617,033 65,317,175 115,791,206 1,062,992,710 1,014,867,768
1,564,679,599 1,785,026,706 233,524,772 294,810,009 1,490,012,332 1,522,647,893
Reinvested dividends and
distributions:
Original Shares 222,982 124,236 98,624 105,339 48,859 59,163
Service Shares 7,899,056 6,031,200 1,169,590 1,211,951 10,263,790 8,074,146
8,122,038 6,155,436 1,268,214 1,317,290 10,312,649 8,133,309
Cost of shares redeemed:
Original Shares (1,091,834,549) (1,392,720,503) (151,311,068) (172,261,157) (401,257,550) (468,776,126)
Service Shares (374,062,057) (350,487,018) (63,349,933) (106,556,540) (994,232,663) (958,541,263)
(1,465,896,606) (1,743,207,521) (214,661,001) (278,817,697) (1,395,490,213) (1,427,317,389)
Change in net assets
from capital share transactions 106,905,031 47,974,621 20,131,985 17,309,602 104,834,768 103,463,813
Total increase in net assets 106,939,347 48,194,499 20,131,985 17,309,766 104,833,233 103,455,781
NET ASSETS:
Beginning of period 580,392,293 532,197,794 130,984,139 113,674,373 354,160,879 250,705,098
End of period
(including undistributed net
investment income of $5,492,
$5,492, $0, $0, $26,907 and
$26, 907, respectively) $ 687,331,640 $ 580,392,293 $ 151,116,124 $ 130,984,139 $ 458,994,112 $ 354,160,879
</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 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 in order to compare the value of the collateral to the amount
of the "loan" (repurchase agreements being defined as "loans" in the 1940
Act), including the accrued interest earned thereon. If the value of the
collateral is less than 102% of the loan plus the accrued interest thereon,
additional collateral is required from the borrower.
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 l iabilities 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") 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, 2000, the Fund
incurred fees under the Advisory Agreement and the Administration Agreement of
$2,185,236 and $733,644 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, 2000,
the Fund incurred fees under the Advisory Agreement and the Administration
Agreement of $378,127 and $149,300, 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, 2000, the Fund incurred fees under the Advisory Agreement and
the Administration Agreement of $1,190,224 and $296,108 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, 2000.
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, in cash,
or a combination of both, at the shareholder's option.
At March 31, 2000, the Cash Fund had a capital loss carryover of
approximately $377,200 which expires on March 31, 2003, and the Government Fund
had a capital loss carryover of approximately $9,700 which expires on March 31,
2008. These amounts are 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 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.
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>
ORIGINAL SHARES SERVICE SHARES
YEAR ENDED MARCH 31, YEAR ENDED MARCH 31,
2000 1999 1998 1997 1996 2000 1999 1998 1997 1996
</CAPTION>
<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
Income from Investment Operations:
Net investment income 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05
Less Distributions:
Dividends from net investment
income (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05)
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total Return (%) 4.89 4.90 5.15 4.88 5.32 4.63 4.64 4.88 4.62 5.06
Ratios/Supplemental Data
Net Assets, End of Period
($ millions) 513 418 419 421 309 174 163 113 66 33
Ratio of Expenses to Average Net
Assets (%) 0.56 0.57 0.58 0.60 0.61 0.81 0.81 0.83 0.85 0.86
Ratio of Net Investment Income to
Average Net Assets (%) 4.80 4.79 5.03 4.78 5.23 4.53 4.51 4.77 4.53 4.84
The expense ratios after giving effect to the expense offset for uninvested
cash balances were:
Ratio of Expenses to Average Net
Assets (%) 0.56 0.56 0.57 0.60 0.60 0.81 0.81 0.82 0.85 0.86
</TABLE>
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>
ORIGINAL SHARES SERVICE SHARES
YEAR ENDED MARCH 31, YEAR ENDED MARCH 31,
2000 1999 1998 1997 1996 2000 1999 1998 1997 1996
</CAPTION>
<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
Income from Investment Operations:
Net investment income 0.03 0.03 0.03 0.03 0.03 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) (0.03) (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 $1.00
Total Return (%) 2.95 2.91 3.08 3.00 3.37 2.70 2.65 2.83 2.75 3.11
Ratios/Supplemental Data
Net Assets, End of Period
($ millions) 100 83 77 91 125 51 48 37 26 18
Ratio of Expenses to Average Net
Assets (%) 0.52 0.54 0.63 0.55 0.54 0.77 0.79 0.88 0.80 0.80
Ratio of Net Investment Income to
Average Net Assets (%) 2.93 2.85 3.04 2.97 3.32 2.66 2.64 2.79 2.70 2.97
The expense ratios after giving effect to the expense offset for uninvested
cash balances were:
Ratio of Expenses to Average Net
Assets (%) 0.52 0.53 0.63 0.55 0.54 0.77 0.78 0.88 0.80 0.80
</TABLE>
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>
ORIGINAL SHARES SERVICE SHARES
YEAR ENDED MARCH 31, YEAR ENDED MARCH 31,
2000 1999 1998 1997 1996 2000 1999 1998 1997 1996
</CAPTION>
<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
Income from Investment Operations:
Net investment income 0.05 0.04 0.05 0.05 0.05 0.04 0.04 0.05 0.04 0.05
Less Distributions:
Dividends from net investment
income (0.05) (0.04) (0.05) (0.05) (0.05) (0.04) (0.04) (0.05) (0.04) (0.05)
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total Return (%) 4.83 4.80 4.95 4.76 5.20 4.56 4.54 4.69 4.50 4.94
Ratios/Supplemental Data
Net Assets, End of Period
($ millions) 166 140 101 66 74 293 214 150 83 12
Ratio of Expenses to Average Net
Assets (%) 0.49 0.49 0.52 0.56 0.55 0.74 0.74 0.77 0.80 0.80
Ratio of Net Investment Income to
Average Net Assets (%) 4.73 4.70 4.85 4.65 5.06 4.50 4.42 4.60 4.42 4.67
The expense and net investment income ratios without the effect of the
Adviser's and Administrator's voluntary waiver of fees for the year ended
March 31, 1996 were:
Ratio of Expenses to Average Net
Assets (%) - - - - 0.63 - - - - 0.88
Ratio of Net Investment Income to
Average Net Assets (%) - - - - 4.98 - - - - 4.59
The expense ratios after giving effect to the waivers and the expense offset
for uninvested cash balances were:
Ratio of Expenses to Average Net
Assets (%) 0.49 0.49 0.52 0.55 0.54 0.74 0.74 0.77 0.79 0.79
</TABLE>
See accompanying notes to financial statements.
</PAGE>
<PAGE>
FEDERAL TAX STATUS OF DISTRIBUTIONS (UNAUDITED)
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, 2000, 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, 2000, shareholders were mailed IRS Form 1099-DIV which
contained information on the status of distributions paid for the 1999 CALENDAR
YEAR.
</PAGE>
