<PAGE>
ADMINISTRATOR
AQUILA MANAGEMENT CORPORATION
380 Madison Avenue, Suite 2300
New York, New York 10017
INVESTMENT ADVISER
STCM MANAGEMENT COMPANY, INC.
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
Diana P. Herrmann
Anne J. Mills
Cornelius T. Ryan
OFFICERS
Lacy B. Herrmann, President
Charles E. Childs, III, Senior 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
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.
</PAGE>
<PAGE>
SEMI-ANNUAL
REPORT
DECEMBER 31, 1999
CAPITAL CASH
MANAGEMENT TRUST
CAPITAL CASH MANAGEMENT TRUST
CAPITAL CASH U.S. GOVERNMENT
SECURITIES TRUST
A CASH MANAGEMENT INVESTMENT
[Logo of Capital Cash Management Trust: a triangle divided in half vertically
with waves on one side and a stalk of wheat on the other. Beneath the triangle
are the words "STABILITY-LIQUIDITY-YIELD"]
[Logo of the Aquila Group of Funds: head of eagle]
ONE OF THE
AQUILAsm GROUP OF FUNDS
</PAGE>
<PAGE>
[Logo of Capital Cash Management Trust: a triangle divided in half vertically
with waves on one side and a stalk of wheat on the other. Beneath the triangle
are the words "STABILITY-LIQUIDITY-YIELD"]
CAPITAL CASH MANAGEMENT TRUST
SEMI-ANNUAL REPORT
February 14, 2000
Dear Investor:
We are pleased to provide you with the Semi-Annual Report for
Capital Cash Management Trust for the period ended December 31, 1999.
Since our last report letter to shareholders in the summer of
1999, the Federal Reserve voted to raise short-term interest rates from 5.00%
to 5.75%. (The most recent increase by the Fed came just two weeks ago on
February 2, 2000.) 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 determined to keep inflation under control and higher
interest rates should eventually slow economic growth.
So far, however, the economy remains exceptionally strong (the
longest U.S. economic expansion on record) while inflation remains remarkably
under control. Led by a surge in consumer spending that was fueled by high
employment and rising incomes, the U.S. economy grew 4.0% during 1999.
Notwithstanding the economy's torrid growth and the impressive employment
outlook, the current low level of inflation, less than 3%, advanced at a rate
slightly higher than the previous two years, but less than the average
inflation rate for the 1990s.
As mentioned in previous report letters, yields on money market
funds, like the Trust, move in concert with interest rate policies pursued by
the Federal Reserve. As an example, at December 31, 1999, the seven-day
yield of the Trust was 5.17% compared to 4.53% for the seven-day period ended
June 30, 1999. As of the date of this Semi-Annual Report letter, the
seven-day yield had risen to 5.30%.
Regardless of what the Fed may do in the future, the
Adviser, STCM Management Company, Inc., will very carefully examine the
creditworthiness and marketability of all issuers of securities utilized in
the Trust's investment portfolio. Investors in the Trust can take comfort in
knowing that those securities purchased by the Trust will be chosen on the
basis of possessing high quality and minimal credit risk in order to seek the
highest possible yield while still ensuring maximum safety for investors' cash
reserves.
You can be assured that all those associated with the management
of Capital Cash Management Trust will consistently work in the interest of
your investment in the Trust. We very much value you as a shareholder and
appreciate the confidence you have shown in Capital Cash Management Trust.
Sincerely,
Charles E. Childs, III
Senior Vice President and
Portfolio Manager
Lacy B. Herrmann
President and Chairman of
the Board of Trustees
</PAGE>
<PAGE>
CAPITAL CASH MANAGEMENT TRUST
STATEMENT OF INVESTMENTS - CASH FUND
DECEMBER 31, 1999
(UNAUDITED)
FACE
AMOUNT COMMERCIAL PAPER - 19.4% VALUE
AUTOMOTIVE - 7.9%
$ 90,000 Ford Motor Credit Corp., 5.75%, 01/04/00 $ 89,957
75,000 General Motors Acceptance Corp., 5.99%, 01/18/00 164,745
FINANCE - 4.3%
90,000 Norwest Financial Inc., 5.80%, 01/24/00 89,667
INSURANCE - 4.3%
90,000 Prudential Funding Corp., 5.70%, 01/11/00 89,858
TRAVEL & LEISURE SERVICES - 2.9%
60,000 American Express Credit Corp., 5.91%, 01/18/00 59,832
Total Commercial Paper 404,102
U.S. GOVERNMENT AGENCY DISCOUNT NOTES - 74.3%
Federal Farm Credit Bank,
100,000 4.25%, 01/10/00 99,894
123,000 5.25%, 01/28/00 122,516
Federal Home Loan Banks,
86,000 5.51%, 01/12/00 85,855
87,000 5.51%, 01/21/00 86,734
100,000 5.75%, 02/29/00 99,058
Federal Home Loan Mortgage Corporation,
100,000 4.00%, 01/13/00 99,867
60,000 5.60%, 01/27/00 59,757
75,000 5.62%, 01/27/00 74,696
87,000 5.58%, 01/28/00 86,636
83,000 5.57%, 02/02/00 82,589
83,000 5.61%, 02/03/00 82,573
93,000 5.59%, 02/08/00 92,451
64,000 5.66%, 02/15/00 63,547
64,000 5.67%, 02/17/00 63,526
123,000 5.60%, 03/09/00 121,699
Federal National Mortgage Association,
85,000 5.60%, 02/09/00 84,484
85,000 5.62%, 02/10/00 84,469
60,000 5.57%, 02/11/00 59,619
Total U.S. Government Agency Discount Notes 1,549,970
Total Investments (cost $1,954,072*) 93.7% 1,954,072
Other assets in excess of liabilities 6.3% 131,114
Net Assets 100.0% $2,085,186
(*) Cost for Federal tax purposes is identical.
See accompanying notes to financial statements.
</PAGE>
<PAGE>
CAPITAL CASH MANAGEMENT TRUST
CASH FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999 (UNAUDITED)
ASSETS
Investments at value (cost $1,954,072) $ 1,954,072
Cash 130,763
Due from Administrator for reimbursement of expenses 6,493
Other assets 7,485
Total assets 2,098,813
LIABILITIES
Accrued expenses 3,953
Dividends payable 9,674
Total liabilities 13,627
NET ASSETS $ 2,085,186
Net Assets consist of:
Capital Stock - Authorized an unlimited number of shares,
par value $.01 per share $ 20,852
Additional paid-in capital 2,064,334
$ 2,085,186
NET ASSET VALUE PER SHARE
Original Shares Class:
Net Assets $ 2,085,186
Shares outstanding 2,085,186
Net asset value per share $ 1.00
Service Shares Class:
This class has not commenced operations.
See accompanying notes to financial statements
</PAGE>
<PAGE>
CAPITAL CASH MANAGEMENT TRUST
CASH FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1999 (UNAUDITED)
INVESTMENT INCOME:
Interest Income $ 48,810
Expenses:
Investment Adviser fees (note 3) $ 1,832
Administrator fees (note 3) 1,374
Legal fees 11,000
Shareholders' reports 7,000
Trustees' fees and expenses 7,000
Registration fees and dues 4,500
Audit and accounting fees 4,000
Transfer and shareholder servicing agent fees 2,500
Custodian fees 1,555
Miscellaneous 759
41,520
Investment Advisory fees waived (note 3) (1,832)
Administration fees waived (note 3) (1,374)
Reimbursement of expenses by
Administrator (note 3) (34,585)
Expenses paid indirectly (note 5) (65)
Net expenses 3,664
Net investment income $ 45,146
See accompanying notes to financial statements
</PAGE>
<PAGE>
CAPITAL CASH MANAGEMENT TRUST
CASH FUND
STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1999 JUNE 30, 1999
</CAPTION>
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
Net investment income $ 45,146 $ 79,554
Dividends to shareholders
($0.0247 and $0.0473 per share,
respectively) (45,146) (79,554)
Change in net assets derived from
investment activities - -
</TABLE>
FROM CAPITAL SHARE TRANSACTIONS:
<TABLE>
<CAPTION>
SHARES
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31,1999 JUNE 30, 1999
</CAPTION>
<S> <C> <C> <C> <C>
Proceeds from shares sold 1,031,204 1,785,654 1,031,204 1,785,654
Reinvested dividends 42,123 79,007 42,123 79,007
Cost of shares redeemed (604,444) (1,861,127) (604,444) (1,861,127)
Change in net assets from
capital share transactions 468,883 3,534 468,883 3,534
Change in net assets 468,883 3,534
NET ASSETS:
Beginning of period 1,616,303 1,612,769
End of period $2,085,186 $1,616,303
</TABLE>
See accompanying notes to financial statements
</PAGE>
<PAGE>
CAPITAL CASH MANAGEMENT TRUST
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. ORGANIZATION
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. It is registered under the Investment Company Act of 1940 (the "1940
Act") as an open-end investment company.
The Trust consists of the following two investment portfolios
(referred to individually as a "Fund" and collectively as the
"Funds"):Capital Cash Management Trust (the "Cash Fund", a diversified
portfolio which commenced operations on July 8, 1974), and Capital Cash U.S.
Government Securities Trust (the "Government Securities Fund", a diversified
portfolio which has not yet commenced operations). 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 of the Cash Fund includes all currently outstanding
shares that were issued prior to November 1, 1999, the date on which the
Capital structure was changed to include two classes rather than one. The two
classes are substantially identical, except that Service Shares bear the fees
that are payable under the Trust's Distribution Plan.
At December 31, 1999, only shares of the Original Shares Class of
the Cash Fund were issued and outstanding, and therefore there is no
financial information available for the Service Shares Class of the Cash Fund
or for the Government Securities Fund.
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.
</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
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.
2. FEES AND RELATED PARTY TRANSACTIONS
a) MANAGEMENT ARRANGEMENTS:
STCM Management Company, Inc. (the "Adviser") is the Investment
Adviser to the Trust. In this role, under Advisory Agreements, the Adviser
supervises each Fund's investments and provides various services for which it
receives a fee from each Fund which is payable monthly and computed at the
annual rate of 0.20% of each Fund's average daily net assets. The Trust also
has Administration Agreements with Aquila Management Corporation (the
"Administrator") to provide all administrative services to the Trust other
than those relating to the investment portfolio. The Administrator recieves a
fee from each Fund for such services which is payable monthly and computed at
the annual rate of 0.15% of each Fund'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.
With respect to the Cash Fund, 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 Cash Fund 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 its average annual net assets plus 1% of its average
annual net assets in excess of $30 million, or (ii) 25% of its total annual
investment income. No such reduction in fees was required during the six
months ended December 31, 1999 inasmuch as the Adviser and the Administrator
voluntarily waived their entire fees in the amount of $1,832 and $1,374,
respectively. In addition, in order to comply with this expense limitation,
the Administrator reimbursed expenses in the amount of $26,963. Also, the
Administrator has undertaken to waive fees or reimburse the Cash Fund to the
extent that annual expenses exceed 0.60 of 1% of average net assets in any
fiscal year and therefore reimbursed expenses of the Cash Fund in the
additional amount of $5,800. Further, the Administrator voluntarily
reimbursed additional expenses of $1,822. For the six months ended December
31, 1999, these expense reimbursements amounted to $34,585. Of this amount,
$28,092 was paid prior to December 31, 1999 and the balance was paid in early
January 2000.
</PAGE>
<PAGE>
b) DISTRIBUTION AND SERVICE FEES:
Each Fund has adopted a Distribution Plan (the "Plan") pursuant to
Rule 12b-1 under the 1940 Act. A part of the Plan authorizes payment of
certain distribution or service fees by the Service Shares Class of the Fund.
Such payments are made to "Designated Payees"- broker-dealers, other
financial institutions and service providers who have entered into
appropriate agreements with the Distributor and which have rendered
assistance in the distribution and/or retention of the Funds' Service Shares
or in the servicing of Service Share accounts. The total payments under this
part of a Fund's Plan may not exceed 0.25 of 1% of its average annual assets
represented by Service Shares. No such payments will be made by the Original
Share Class. Specific details about each Plan are more fully defined in the
Prospectus and Statement of Additional Information of the Funds.
Under a Distribution Agreement, Aquila Distributors, Inc. (the
"Distributor") serves as the exclusive distributor of the Funds' shares. No
compensation or fees are paid to the Distributor for such share distribution.
4. DISTRIBUTIONS
The Funds declare dividends daily from net investment income and
make payments monthly in additional shares at the net asset value per share,
in cash, or in a combination of both, at the shareholder's option.
5. EXPENSES
The Funds have negotiated an expense offset arrangement with their
custodian wherein they receive credit toward the reduction of custodian fees
and other Trust expenses whenever there are uninvested cash balances. The
Statement of Operations reflects 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.
</PAGE>
<PAGE>
CAPITAL CASH MANAGEMENT TRUST
CASH FUND - ORIGINAL SHARES
FINANCIAL HIGHLIGHTS
(unaudited)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
12/31/99 1999 1998 1997 1996 1995
</CAPTION>
<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 0.0247 0.0473 0.0521 0.0489 0.0518 0.0497
Less Distributions:
Dividends from net investment income (0.0247) (0.0473) (0.0521) (0.0489) (0.0518) (0.0497)
Net Asset Value, End of Period $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
Total Return (%) 2.49+ 4.84 5.33 5.00 5.29 5.09
Ratios/Supplemental Data
Net Assets, End of Period ($ in thousands) 2,085 1,616 1,613 1,435 1,765 1,660
Ratio of Expenses to Average Net Assets (%) 0.41* 0.41 0.40 0.41 0.41 0.42
Ratio of Net Investment Income to Average
Net Assets (%) 4.90* 4.72 5.21 4.88 5.16 4.98
The expense and net investment income ratios
without the effect of the Adviser's and
Administrator's voluntary waiver of fees and the
Administrator's expense reimbursement were:
Ratio of Expenses to Average Net Assets (%) 4.51* 3.51 5.14 6.48 5.74 5.00
Ratio of Net Investment Income (Loss) to
Average Net Assets (%) 0.80* 1.62 0.47 (1.19) (0.17) (0.40)
The expense ratios after giving effect to the
waivers, reimbursements and expense offset for
uninvested cash balances were:
Ratio of Expenses to Average Net Assets (%) 0.40* 0.40 0.40 0.40 0.40 0.40
</TABLE>
+ Not annualized.
* Annualized.
See accompanying notes to financial statements.
