<LOGO>
CAPITAL CASH MANAGEMENT TRUST
SEMI-ANNUAL REPORT
February 6, 1996
Dear Investor:
Capital Cash Management Trust continues to provide shareholders - both
individual and institutional investors - with specialized management of their
cash reserves. Throughout the years, the Trust has generated a high level of
current income, liquidity and safety of principal of shareholders under
whatever market conditions have prevailed, by investing in a diversified
portfolio of money-market securities which meet specific high-quality
standards and possess minimal credit risk.
Of most importance, we note that the monetary policies pursued by the
Federal Reserve continued to play a significant role in the money markets
during the Trust's latest report period.
The first six months of the Trust's current fiscal year - from July 1
through December 31, 1995 - was a period of economic slowdown and continued
mild inflation. As a result, the Federal Reserve, the nations central bank,
reversed course from the restrictive monetary policy they had pursued for the
past 17 months and began easing short-term interest rates. The Fed lowered
the Federal Funds rate - the rate banks charge one another for overnight
loans - 25 basis points on two occasions, first in July and then six months
later in December. By reducing short-term interest rates, the Federal
Reserve aimed to instill new vigor into a slowing economy thereby lessening
the likelihood of the economy falling into a recession.
As we have commented in previous reports to shareholders, short-term
interest rates move in concert with the rate policies pursued by the Federal
Reserve. The seven-day yield was 5.34% as of December 31, 1995.
We would not be surprised to see current low rate levels for money
market fund yields continue for a number of months to come, since present
indications suggest only moderate growth in our domestic economy, with
inflation being reasonably in check in the U.S. as well as having low
inflationary pressures throughout most of the world.
STCM Management Company, Inc., the Trust's Investment Adviser,
continues to manage the Trust's investment portfolio by maintaining a
disciplined, long-term approach to short-term investing. Investors can take
comfort in knowing that investments in the Trust will be placed in securities
of the highest credit rating as the Adviser strives to achieve maximum safety
for investors cash reserves.
We thank you for your continuing confidence in Capital Cash Management
Trust. You can be assured that we will be doing our very best to merit your
further trust.
Sincerely,
/s/ Lacy B. Herrmann
Lacy B. Herrmann
President and Chairman
of the Board of Trustees
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<TABLE>
<CAPTION>
CAPITAL CASH MANAGEMENT TRUST
STATEMENT OF INVESTMENTS
DECEMBER 31, 1995 (UNAUDITED)
FACE
AMOUNT COMMERCIAL PAPER (60.4%) VALUE
<C> <S> <C>
Automotive Finance (5.2%)
$ 92,000 Ford Motor Credit Corp., 5.650%, 01/16/96 $ 91,783
Electronics (5.6%)
100,000 GE Capital Corp., 5.800%, 01/26/96 99,597
Finance (10.2%)
87,000 American General Finance Corp., 5.650%, 01/30/96 86,604
95,000 Norwest Financial Inc., 5.680%, 01/08/96 94,895
181,499
Insurance (3.9%)
70,000 Prudential Funding Corp., 5.770%, 01/03/96 69,978
Oil (5.1%)
90,000 Chevron Oil Finance Co., 5.680%, 01/10/96 89,872
Office Equipment (5.0%)
90,000 Hewlett-Packard Co., 5.630%, 01/18/96 89,761
Pharmaceuticals (10.3%)
90,000 Sandoz Corp., 5.680%, 02/06/96 89,489
95,000 Schering Corp., 5.650%, 01/31/96 94,553
184,042
Telecommunications (9.8%)
80,000 Pacific Bell, 5.650%, 01/25/96 79,699
95,000 Siemens Corp., 5.680%, 01/19/96 94,730
174,429
Travel & Leisure Services (5.3%)
96,000 American Express Credit Corp., 5.600%, 01/29/96 95,582
Total Commercial Paper 1,076,543
U.S. GOVERNMENT AGENCY DISCOUNT NOTES (40.0%)
95,000 Federal Farm Credit Bank, 5.650%, 01/12/96 94,836
30,000 Federal Farm Credit Bank, 5.600%, 01/16/96 29,930
60,000 Federal Farm Credit Bank, 5.600%, 01/18/96 59,841
60,000 Federal Farm Credit Bank, 5.620%, 01/23/96 59,794
90,000 Federal Home Loan Mortgage Association, 5.630%,
01/16/96 89,986
25,000 Federal Home Loan Mortgage Association, 5.630%,
01/16/96 24,941
50,000 Federal Home Loan Mortgage Association, 5.630%,
01/24/96 49,820
47,000 Federal Home Loan Mortgage Association, 5.500%,
01/25/96 46,828
</TABLE>
2
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<TABLE>
<CAPTION>
CAPITAL CASH MANAGEMENT TRUST
STATEMENT OF INVESTMENTS
FACE
AMOUNT U.S. GOVERNMENT AGENCY DISCOUNT NOTES (CONTINUED) VALUE
<C> <S>
$ 35,000 Federal Home Loan Mortgage Association, 5.200%,
01/30/96 $ 34,844
65,000 Federal National Mortgage Association, 5.620%,
01/05/96 64,959
45,000 Federal National Mortgage Association, 5.650%,
01/08/96 44,951
90,000 Federal National Mortgage Association, 5.670%,
01/12/96 89,844
20,000 Federal National Mortgage Association, 5.600%,
01/19/96 19,944
Total U.S. Government Agency Discount Notes 710,518
Total Investments - 100.4% (Cost-$1,787,061*) 1,787,061
Liabilities in excess of other assets - (.4%) (7,697)
Net Assets - 100% $ 1,779,364
<FN>
(*) Cost for Federal income tax purposes is identical.
</FN>
</TABLE>
See accompanying notes to financial statements.
3
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<TABLE>
<CAPTION>
CAPITAL CASH MANAGEMENT TRUST
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995 (UNAUDITED)
<S> <C>
ASSETS
Investments at value (cost - $1,787,061) $ 1,787,061
Due from Administrator for reimbursement of expenses 8,469
Other assets 10,882
Total assets 1,806,412
LIABILITIES
Cash overdraft 18,037
Accrued expenses 7,523
Dividends payable 1,488
Total liabilities 27,048
NET ASSETS (equivalent to $1.00 per share on 1,779,364
shares outstanding) $ 1,779,364
Net Assets consist of:
Capital Stock - Authorized an unlimited number of shares,
par value $.01 per share $ 17,794
Additional paid-in capital 1,761,570
Total Liabilities $ 1,779,364
</TABLE>
See accompanying notes to financial statements.
4
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<TABLE>
<CAPTION>
CAPITAL CASH MANAGEMENT TRUST
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
Interest Income $ 54,222
EXPENSES:
Investment Adviser fees (note B) $ 1,882
Administrator fees (note B) 1,412
Trustees fees and expenses 9,000
Audit and accounting fees 7,400
Registration fees and dues 6,000
Legal fees 5,000
Transfer and shareholder servicing agent fees 5,000
Custodian fees (note D) 4,393
Shareholders reports and proxy statements 4,000
Miscellaneous 4,766
48,853
Investment Advisory fees waived (note B) (1,882)
Administration fees waived (note B) (1,412)
Reimbursement of expenses by Administrator (note B) (41,701)
Expenses paid indirectly (note D) (97)
Net expenses 3,761
Net investment income $ 50,461
</TABLE>
See accompanying notes to financial statements.
5
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<TABLE>
<CAPTION>
CAPITAL CASH MANAGEMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
<S> <C> <C>
SIX MONTHS
ENDED YEAR ENDED
DECEMBER JUNE 30,
31, 1995 1995
FROM INVESTMENT ACTIVITIES:
Net investment income $ 50,461 $ 98,208
Dividends to shareholders ($0.0270 and
$0.0497 per share, respectively) (50,461) (98,208)
Change in net assets derived from
investment activities - -
<CAPTION>
FROM TRUST SHARE TRANSACTIONS:
SHARES
SIX MONTHS
ENDED YEAR ENDED
DECEMBER JUNE 30,
31, 1995 1995
<S> <C> <C> <C> <C>
Shares sold 935,964 2,223,008 935,964 2,223,008
Shares issued through
reinvestment of
dividends 48,618 88,539 48,618 88,539
Shares redeemed (865,566) (2,364,585) (865,566) (2,364,585)
Increase (decrease)
in shares and net
assets derived from
Trust share
transactions 119,016 (53,038) 119,016 (53,038)
Net increase (decrease)
in net assets 119,016 (53,038)
NET ASSETS:
Beginning of period 1,660,348 1,713,386
End of period $ 1,779,364 $ 1,660,348
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
CAPITAL CASH MANAGEMENT TRUST
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Capital Cash Management Trust (the "Trust") is a Massachusetts business
trust established on August 20, 1976 as a successor to the money-market fund,
the STCM Corporation, which commenced operations on July 8, 1974.
The following is a summary of significant accounting policies followed by
the Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles for investment
companies.
(1) Portfolio valuation: The Trust'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.
(2) 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.
(3) Federal income taxes: It is the policy of the Trust to qualify as a
regulated investment company by complying with the provisions of the
Internal Revenue Code applicable to certain investment companies. The
Trust intends to make distributions of income and securities profits
sufficient to relieve it from all, or substantially all, Federal income
and excise taxes.
(4) Repurchase agreements: It is the Trust'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.
NOTE B - MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
STCM Management Company, Inc. (the "Adviser") became Investment Adviser
to the Trust in February, 1992. In this role, under an Investment Advisory
Agreement, the Adviser supervises the Trust's investments and provides
various services for which they receive a fee which is payable monthly and
computed on the net assets of the Trust at the annual rate of 0.20% of the
Trust's average daily net assets. The Trust also has an Administration
Agreement with Aquila Management Corporation (the "Administrator") to provide
all administrative services to the Trust other than those relating to the
investment portfolio and the accounting records. The Administrator receives a
fee for such services which is payable monthly and computed on the net assets
of the Trust at the annual rate of 0.15% of the Trust's average daily net
assets. Details regarding the services provided by the Adviser and the
Administrator are provided in the Trust's Prospectus and Statement of
Additional Information.
7
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CAPITAL CASH MANAGEMENT TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
Certain states impose limitations on expenses. In order to comply with
what is believed to be the most restrictive of these limitations, the Adviser
and the Administrator each has agreed 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 the Trust in any fiscal year,
exclusive of taxes, interest, and brokerage fees, shall exceed the lesser of
(i) 1.5% of the first $30 million of average annual net assets of the Trust
plus 1% of its average annual net assets in excess of $30 million, or (ii)
25% of the Trust's total annual investment income. No such reduction in fees
was required during the six months ended December 31, 1995 inasmuch as the
Adviser and the Administrator voluntarily waived their entire fees in the
amount of $1,882 and $1,412, respectively. In addition, in order to comply
with this expense limitation, the Administrator reimbursed expenses in the
amount of $31,907. Also, the Administrator has undertaken to waive fees or
reimburse the Trust to the extent that annual expenses exceed 0.60 of 1% of
average net assets in any fiscal year and therefore reimbursed expenses in
the additional amount of $8,001. Further, the Administrator voluntarily
reimbursed expenses of $1,793, bringing the total expense reimbursement for
the six months ended December 31, 1995 to $41,701.
Under a Distribution Agreement dated February 28, 1992, Aquila
Distributors, Inc. (the "Distributor") serves as the exclusive distributor of
the Trust's shares. No compensation or fees are paid to the Distributor for
such share distribution.
NOTE C - DISTRIBUTIONS:
The Trust declares dividends daily from net investment income and makes
payment monthly in additional shares at the net asset value per share or in
cash, at the shareholder's option.
NOTE D - CUSTODIAN FEES:
The Trust has negotiated an expense offset arrangement with its custodian
wherein it receives credit toward the reduction of custodian fees whenever
there are uninvested cash balances. During the six months ended December 31,
1995, the Trust's custodian fees amounted to $4,393, of which $97 was offset
by such credits. The Trust could have invested its cash balances in an
income-producing asset if it had not agreed to a reduction in fees under the
expense offset arrangement with the custodian.
8
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<TABLE>
<CAPTION>
CAPITAL CASH MANAGEMENT TRUST
FINANCIAL HIGHLIGHTS
(UNAUDITED)
For a share outstanding throughout each period
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER
31, 1995 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
Income from Investment
Operations:
Net investment income 0.0270 0.0497 0.0309 0.0310 0.0448 0.0684
Less Distributions:
Dividends from net
investment income (0.0270) (0.0497) (0.0309) (0.0310) (0.0448) (0.0684)
Net Asset Value,
End of Period $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
Total Return 2.73%# 5.09% 3.14% 3.14% 4.57% 7.06%
Ratios/Supplemental
Data
Net Assets, End of
Period (in thousands) $1,779 $1,660 $1,713 $1,744 $2,088 $2,403
Ratio of Expenses to
Average Net Assets 0.40%* 0.40% 0.28% 0.09% 0.10% 0.24%
Ratio of Net Investment
Income to Average Net
Assets 5.36%* 5.00% 3.08% 3.11% 4.52% 6.85%
<CAPTION>
Net investment income (loss) per share and the ratios of income and expenses
to average net assets without the Adviser's and Administrator's voluntary
waiver of fees, the Administrator's expense reimbursement and the expense
offset in custodian fees for uninvested cash balances would have been:
<S> <C> <C> <C> <C> <C> <C>
Net Investment
Income (loss) $0.0029 $0.0038 ($0.0137) ($0.0221) ($0.0104) $0.0320
Ratio of Expenses to
Average Net Assets 5.19%* 5.02% 4.73% 5.41% 5.68% 3.89%
Ratio of Net Investment
Income (loss) to
Average Net Assets 0.57%* 0.38% (1.37%) (2.21%) (1.05%) 3.20%
<FN>
# Not annualized.
</FN>
<FN>
* Annualized.
</FN>
</TABLE>
9
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INVESTMENT ADVISER
STCM MANAGEMENT COMPANY, INC.
380 Madison Avenue, Suite 2300
New York, New York 10017
ADMINISTRATOR
AQUILA MANAGEMENT CORPORATION
380 Madison Avenue, Suite 2300
New York, New York 10017
DISTRIBUTOR
AQUILA DISTRIBUTORS, INC.
380 Madison Avenue, Suite 2300
New York, New York 10017
TRUSTEES
Lacy B. Herrmann, Chairman
Theodore T. Mason, Vice Chairman
Paul Y. Clinton
Robert L. Krakoff
Anne J. Mills
Cornelius T. Ryan
OFFICERS
Lacy B. Herrmann, President
Charles E. Childs, III, Senior Vice President
John W. Cody, Vice President
Diana P. Herrmann, Vice President
John M. Herndon, Vice President & Assistant Secretary
Rose F. Marotta, Chief Financial Officer
Richard F. West, Treasurer
Edward M.W. Hines, Secretary
Patricia A. Craven, Assistant Secretary
TRANSFER AND SHAREHOLDER SERVICING AGENT
ADMINISTRATIVE DATA
MANAGEMENT CORP.
581 Main Street
Woodbridge, New Jersey 07095-1198
CUSTODIAN
BANK ONE TRUST COMPANY, N.A.
100 East Broad Street
Columbus, Ohio 43271
INDEPENDENT AUDITORS
KPMG PEAT MARWICK LLP
345 Park Avenue
New York, New York 10154
Further information is contained in the Prospectus,
which must precede or accompany this report.
SEMI-ANNUAL
REPORT
DECEMBER 31, 1995
A cash management investment
CAPITAL CASH
MANAGEMENT TRUST
<LOGO>
(picture of eagle)
One of the
AQUILA(SM) Group of Funds
