SHORT TERM ASSET RESERVES ANNUAL REPORT
380 Madison Avenue MARCH 31, 1996
New York, New York 10017
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS
March 31, 1996
<S> <C>
Cash and Net Assets - 100.0%
Applicable to 1,001 shares outstanding (unlimited number $1,001
of $.01 par value shares authorized)
Net Asset Value Per Share $1.00
</TABLE>
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the Year Ended March 31, 1996
The Trust had no operations during the year.
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
Year ended Year ended
March 31, March 31,
1996 1995
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Net investment income $ - $ -
Dividends to shareholders - none - -
Change in net assets derived from
investment activities - -
<CAPTION>
FROM TRUST SHARE TRANSACTIONS:
Shares
Year ended Year ended
March 31, March 31,
1996 1995
<S> <C> <C> <C> <C>
Shares sold - - - -
Shares redeemed - - - -
Change in shares and
net assets derived
from Trust share
transactions - - - -
Net change in net
assets - -
NET ASSETS:
Beginning of year 1,001 1,001
End of year $1,001 $1,001
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHORT TERM ASSET RESERVES
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
Year ended March 31,
1996(1) 1995(1) 1994(1) 1993(2) 1992
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Year $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
Income from Investment
Operations:
Net investment income - - - 0.0251 0.0488
Less Distributions:
Dividends from net
investment income - - - (0.0251) (0.0488)
Net Asset Value, End of Year $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
Total Return - - - 3.06% 4.99%
Ratios/Supplemental Data
Net Assets, End of Year
(in thousands) 1 1 1 1 19,536
Ratio of Expenses to
Average Net Assets - - - 0.59% 0.58%
Ratio of Net Investment
Income to Average Net
Assets - - - 3.04% 4.88%
<CAPTION>
For the years ended March 31, 1993 and 1992, respectively, 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 would
have been:
<S> <C> <C>
Net Investment Income $0.0238 $0.0438
Ratio of Expenses to Average Net Assets 0.75% 1.09%
Ratio of Net Investment Income to Average
Net Assets 2.88% 4.38%
<FN>
(1) The Trust had no operations during the year.
</FN>
<FN>
(2) Per share amounts are for the period April 1, 1992 through
January 28, 1993, the date of the Trust's last dividend payment.
Total return and ratios have been annualized.
</FN>
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Note A - Short Term Asset Reserves (the "Trust") was organized on July
31, 1984, as a Massachusetts business trust and commenced operations on
January 8, 1985 as a diversified, open-end investment company. At the
close of business on January 28, 1993, inasmuch as all shares outstanding,
except for 1,001 shares owned by Aquila Management Corporation, had been
redeemed by shareholders, the Trust ceased operations and has had no
operations since that date. Although the Trust is not conducting a public
offering of it shares, it will continue its existence as a Massachusetts
business trust and maintain its registration as an investment company.
Note B - Since inception, the Trust has qualified as a regulated investment
company by complying with the provisions of the Internal Revenue Code
applicable to certain investment companies. The Trust made distributions of
income and securities profits sufficient to relieve it from all, or
substantially all, Federal income and excise taxes.
Note C - Subsequent Event - The Trust, which was originally a money market
fund, has taken measures to restructure itself as an equity fund and as
restructured, to resume operations. At a meeting of the Board of Trustees
held on April 1, 1996, various actions were authorized, including the
filing of a post-effective amendment to the registration statement of the
Trust, entering into an Advisory and Administration Agreement between the
Trust and Aquila Management Corporation and a Sub-Advisory Agreement between
the Trust and Ferguson, Wellman, Rudd, Purdy & Van Winkle, Inc., and
submitting various measures to shareholder vote. On April 11, 1996, the
sole shareholder of the Trust authorized changing the name of the Trust,
providing for classes of shares, and various other measures. On that date,
a Supplemental Declaration of Trust was executed, which among other things
changed the name of the Trust to "Aquila Cascadia Pacific Equity Fund."
Report of the Annual Meeting of Shareholders (unaudited)
The Annual Meeting of Shareholders of Short Term Asset Reserves (the
"Trust") was held on March 29, 1996.* At the meeting, the following matters
were submitted to a shareholder vote and approved by a unanimous vote of the
Trust's outstanding voting securities: (i) the election of Lacy B. Herrmann,
Ann R. Leven and Theodore T. Mason as Trustees to hold office until the next
annual meeting of the Trust's shareholders or until his or her successor is
duly elected, and (ii) the ratification of the selection of KPMG Peat
Marwick LLP as the Trust's independent auditors for the fiscal year ending
March 31, 1996.
_____________________________
* On the record date for this meeting, 1,001 shares of the Trust were
outstanding and entitled to vote. The holders of 1,001 shares (100%)
entitled to vote were present in person at the meeting.
<PAGE>
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholder of
Short Term Asset Reserves:
We have audited the accompanying statement of net assets of Short Term
Asset Reserves as of March 31, 1996, the related statement 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. 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 Short Term Asset Reserves as of March 31, 1996, 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 Peat Marwick LLP
New York, New York
April 16, 1996
4
<PAGE>
