<PAGE>
ADMINISTRATOR
Aquila Management Corporation
380 Madison Avenue, Suite 2300
New York, New York 10017
INVESTMENT ADVISER
STCMManagement 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
757 Third Avenue
New York, New York 10017
Further information is contained in the Prospectus,
which must precede or accompany this report.
ANNUAL
REPORT
JUNE 30, 2000
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 with a wave pattern in the
left half and a grain of wheat in the right half. Beneath this triangle are the
words STABILITY * LIQUIDITY * YIELD]
[Logo of the Aquila Group of Funds: an eagle's head]
ONE OF THE
AQUILASM GROUP OF FUNDS
</PAGE>
<PAGE>
[Logo of Capital Cash Management Trust: a triangle with a wave pattern in the
left half and a grain of wheat in the right half. Beneath this triangle are the
words STABILITY * LIQUIDITY * YIELD]
CAPITAL CASH MANAGEMENT TRUST
ANNUAL REPORT
August 7, 2000
Dear Investor:
We are pleased to provide you with the Annual Report for Capital Cash
Management Trust for the fiscal year ended June 30, 2000.
The enclosed Annual Report includes the two portfolios of Capital Cash
Management Trust: Capital Cash Management Trust and Capital Cash U.S. Government
Securities Trust.
The economic climate and the Federal Reserve's monetary policy once again
had an impact on the short-term debt markets during the Trust's current report
period.
The Fed has raised its benchmark short-term Federal funds rate by 1.75% in
six steps since June 1999, to 6.50%, in an effort to squelch inflation pressures
before they take root in the economy. The Fed's action resulted from higher
equity and real estate prices, increased wages and tight labor markets, which
helped spur consumer spending during the reporting period. The booming economy
also contributed to a continued downtrend in the national unemployment rate,
which reached 4.0% at the end of June. 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.
The Trust's Investment Adviser, STCM Management Company, Inc., continues to
act with a high level of prudence. The Adviser very carefully examines 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 in the Trust will be chosen on the basis of possessing
high quality and minimal credit risk in order to ensure maximum safety for
investors' cash reserves.
The seven-day yield for each of the Trust's portfolios as of June 30, 2000
was as follows:
CAPITAL CASH MANAGEMENT TRUST (ORIGINAL SHARES): 6.21%
CAPITAL CASH U.S. GOVERNMENT SECURITIES TRUST (SERVICE SHARES): 5.84%
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
Capital Cash Management 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 Capital Cash Management 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/ Charles E. Childs, III
---------------------------
Charles E. Childs, III
Senior Vice President and
Portfolio Manager
/s/ Lacy B. Herrmann
---------------------
Lacy B. Herrmann
President and Chairman of
the Board of Trustees
</PAGE>
<PAGE>
[Logo of KPMG LLP: four solid rectangles with the letters KPMG in front of them]
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders of
Capital Cash Management Trust:
We have audited the accompanying statements of assets and liabilities of
Capital Cash Management Trust (the "Trust") (comprised of Cash Fund and
Government Securities Fund), including the statements of investments, as of June
30, 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 financial statements and fin ancial 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 auditing standards generally
accepted in the United States of America. 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 June 30, 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 June 30, 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 accounting principles generally accepted
in the United States of America.
/s/ KPMG LLP
-------------
New York, New York
August 4, 2000
</PAGE>
<PAGE>
CAPITAL CASH MANAGEMENT TRUST
STATEMENTS OF INVESTMENTS
JUNE 30, 2000
<TABLE>
<CAPTION>
CAPITAL CASH MANAGEMENT TRUST
FACE AMOUNT COMMERCIAL PAPER - 24.0% VALUE
</CAPTION>
<S> <C> <C> <C>
AUTOMOTIVE - 9.6%
$ 84,000 Ford Motor Credit Corp., 6.40%, 07/06/00 $ 83,926
80,000 General Motors Acceptance Corp., 6.55%, 08/02/00 79,534
163,460
FINANCE - 5.0%
85,000 Norwest Financial Inc., 6.55%, 07/31/00 84,535
INSURANCE - 4.7%
81,000 Prudential Funding Corp., 6.54%, 07/31/00 80,559
TRAVEL & LEISURE SERVICES - 4.7%
80,000 American Express Credit Corp., 6.70%, 07/07/00 79,911
Total Commercial Paper 408,465
U.S. GOVERNMENT AGENCY DISCOUNT NOTES - 77.2%
158,000 Federal Home Loan Banks, 6.45%, 07/14/00 157,632
Federal Home Loan Mortgage Corporation,
100,000 6.50%, 07/03/00 99,964
100,000 6.41%, 07/11/00 99,822
142,000 6.45%, 07/17/00 141,593
80,000 6.46%, 07/25/00 79,655
230,000 6.42%, 07/27/00 - 08/08/00 228,763
80,000 6.50%, 08/09/00 79,437
Federal National Mortgage Association,
234,000 6.41%, 07/18/00 - 07/20/00 233,263
142,000 6.42%, 08/03/00 141,164
50,000 6.43%, 08/11/00 49,634
Total U.S. Government Agency Discount Notes 1,310,927
Total Investments (cost $1,719,392*) 101.2% 1,719,392
Liabilities in excess of other assets (1.2) (20,420)
Net Assets 100.0% $ 1,698,972
CAPITAL CASH U.S. GOVERNMENT SECURITIES TRUST
U.S GOVERNMENT AGENCY DISCOUNT NOTES - 100.4%
$ 796,000 Federal Farm Credit Bank, 6.40%, 07/13/00 $ 794,302
400,000 Federal Home Loan Banks, 6.50%, 07/03/00 399,855
500,000 Federal Home Loan Mortgage Corporation, 6.52%, 07/03/00 499,819
Total Investments (cost $1,693,976*) 100.4% 1,693,976
Liabilities in excess of other assets (0.4) (6,469)
Net Assets 100.0% $ 1,687,507
</TABLE>
(*) Cost for Federal tax purpose is identical.
See accompanying notes to financial statements.
</PAGE>
<PAGE>
CAPITAL CASH MANAGEMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 2000
<TABLE>
<CAPTION>
CASH GOVERNMENT
FUND SECURITIES FUND
</CAPTION>
<S> <C> <C> <C> <C>
ASSETS:
Investments at value
(cost $1,719,392 and $1,693,976, respectively) $ 1,719,392 $ 1,693,976
Cash - 2,398
Due from Administrator for reimbursement of expenses 5,867 -
Other assets 2,206 -
Total Assets 1,727,465 1,696,374
LIABILITIES:
Cash overdraft 18,173 -
Accrued expenses 9,518 7,880
Dividends payable 802 -
Adviser and Administrator fees payable - 527
Distribution fees payable - 460
Total Liabilities 28,493 8,867
NET ASSETS $ 1,698,972 $ 1,687,507
NET ASSETS CONSIST OF:
Capital Stock - Authorized an unlimited number of shares,
par value $.01 per share $ 16,990 $ 16,882
Additional paid-in capital 1,681,982 1,671,282
Accumulated net realized loss on investments - (657)
$ 1,698,972 $ 1,687,507
SHARES OF BENEFICIAL INTEREST:
Original Shares Class:
Net Assets $ 1,698,972 -
Shares outstanding 1,698,961 -
Net asset value per share $ 1.00 -
Service Shares Class:
Net Assets - $ 1,687,507
Shares outstanding - 1,688,164
Net asset value per share - $1.00
</TABLE>
See accompanying notes to financial statements.
</PAGE>
<PAGE>
CAPITAL CASH MANAGEMENT TRUST
STATEMENTS OF OPERATIONS
FOR YEAR ENDED JUNE 30, 2000
<TABLE>
<CAPTION>
CASH GOVERNMENT
FUND SECURITIES FUND
YEAR ENDED PERIOD ENDED
JUNE 30, 2000 JUNE 30, 2000*
</CAPTION>
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 102,446 $ 114,391
EXPENSES:
Investment Adviser fees (note 3) 3,625 3,828
Administrator fees (note 3) 2,719 2,871
Legal fees 30,126 600
Trustees' fees and expenses 13,029 2,542
Shareholders' reports 12,768 1,800
Registration fees and dues 11,221 -
Audit and accounting fees 8,500 6,250
Transfer and shareholder servicing agent fees 3,021 1,032
Custodian fees 3,584 588
Distribution fees (note 3) - 4,785
Miscellaneous 4,877 102
Total expenses 93,470 24,398
Investment Advisory fees waived (note 3) (3,625) (1,961)
Administration fees waived (note 3) (2,719) (2,871)
Reimbursement of expenses by Administrator (note 3) (79,701) (6,613)
Expenses paid indirectly (note 5) (175) (588)
Net expenses 7,250 12,365
Net investment income 95,196 102,026
Net realized loss from securities transactions - (657)
Net increase in net assets resulting from operations $ 95,196 $ 101,369
</TABLE>
* For the period March 16, 2000 (commencement of operations) through June 30,
2000.
See accompanying notes to financial statements.
</PAGE>
<PAGE>
CAPITAL CASH MANAGEMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GOVERNMENT
CASH FUND SECURITIES FUND
YEAR ENDED JUNE 30, PERIOD ENDED
2000 1999 JUNE 30, 2000*
</CAPTION>
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 95,196 $ 79,554 $ 102,026
Net realized loss from securities transactions - - (657)
Change in net assets resulting from operations 95,196 79,554 101,369
DIVIDENDS TO SHAREHOLDERS
FROM NET INVESTMENT INCOME:
Original Shares (95,196) (79,554) -
Service Shares - - (102,026)
Total dividends to shareholders from net
investment income (95,196) (79,554) (102,026)
CAPITAL SHARE TRANSACTIONS
(at $1.00 per share):
Proceeds from shares sold:
Original Shares 2,001,411 1,785,654 -
Service Shares - - 29,556,526
2,001,411 1,785,654 29,556,526
Reinvested dividends and distributions:
Original Shares 100,795 79,007 -
Service Shares - - 102,043
100,795 79,007 102,043
Cost of shares redeemed:
Original Shares (2,019,537) (1,861,127) -
Service Shares - - (27,970,405)
(2,019,537) (1,861,127) (27,970,405)
Change in net assets from capital share
transactions 82,669 3,534 1,688,164
Total change in net assets 82,669 3,534 1,687,507
NET ASSETS:
Beginning of period 1,616,303 1,612,769 -
End of period $ 1,698,972 $ 1,616,303 $ 1,687,507
</TABLE>
*For the period March 16, 2000 (commencement of operations) through June 30,
2000.
See accompanying notes to financial statements.
</PAGE>
<PAGE>
CAPITAL CASH MANAGEMENT TRUST
NOTES TO FINANCIAL STATEMENTS
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 commenced
operations on March 16, 2000). 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.
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.
3. 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 receives 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 year ended June 30, 2000 inasmuch as
the Adviser and the Administrator voluntarily waived their entire fees in the
amount of $3,625 and $2,719, respectively. In addition, in order to comply with
this expense limitation, the Administrator reimbursed expenses in the amount of
$61,339. 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 $14,723. Further, the Administrator voluntarily
reimbursed additional expenses of $3,639. For the year ended June 30, 2000,
these expense reimbursements amounted to $79,701. Of this amount, $73,834 was
paid prior to June 30, 2000 and the balance was paid in early July 2000.
</PAGE>
<PAGE>
With respect to the Government Securities Fund for the period March 16,
2000 (commencement of operations) through June 30, 2000, the Fund incurred fees
under the Advisory Agreement and Administration Agreement of $3,828 and $2,871,
respectively, of which amounts the Adviser and Administrator waived $1,961 and
$2,871, respectively. Additionally, the Administrator voluntarily agreed to
reimburse the Fund for other expenses during this period in the amount of
$6,613.
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 expenses whenever there are uninvested cash balances. The Statements of
Operations reflect the total expenses before any offset, the amount of offset,
if any, 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
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
GOVERNMENT
SECURITIES FUND
CASH FUND ORIGINAL SHARES (1) SERVICE SHARES
YEAR ENDED JUNE 30, PERIOD ENDED
2000 1999 1998 1997 1996 6/30/00(2)
<CAPTION>
<S> <C> <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 0.0524 0.0473 0.0521 0.0489 0.0518 0.0161
Less Distributions:
Dividends from net investment income (0.0524) (0.0473) (0.0521) (0.0489) (0.0518) (0.0161)
Net Asset Value, End of Period $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
Total Return (%) 5.37 4.84 5.33 5.00 5.29 1.62+
*Ratios/Supplemental Data
Net Assets, End of Period ($ in thousands) 1,699 1,616 1,613 1,435 1,765 1,688
Ratio of Expenses to Average Net Assets (%) 0.41 0.41 0.40 0.41 0.41 0.68*
Ratio of Net Investment Income to Average
Net Assets (%) 5.24 4.72 5.21 4.88 5.16 5.30*
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 (%) 5.14 3.51 5.14 6.48 5.74 1.24*
Ratio of Net Investment Income (Loss) to
Average Net Assets (%) 0.50 1.62 0.47 (1.19) (0.17) 4.73*
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 0.65*
</TABLE>
(1) Designated as the "Original Shares" class of shares on November 1, 1999.
(2) For the period March 16, 2000 (commencement of operations)through June
30, 2000.
+ Not annualized.
* Annualized.
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 June 30, 2000, the Federal tax status of the
total amount of dividends paid by each of the investment portfolios comprising
Capital Cash Management Trust is as follows:
FUND FEDERAL TAX STATUS
Capital Cash Management Trust Ordinary dividend income
Capital Cash U.S. Government Securities 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>
