UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM N-CSR Investment Company Act file number 811-3043 Scudder U.S. Treasury Money Fund -------------------------------- (Exact Name of Registrant as Specified in Charter) Two International Place, Boston, MA 02110-4103 ---------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, including Area Code: (6l7) 295-1000 -------------- John Millette Deutsche Investment Management Americas Inc. Two International Place, Boston, MA 02110 ----------------------------------------- (Name and Address of Agent for Service) Date of fiscal year end: 5/31 Date of reporting period: 5/31/03ITEM 1. REPORT TO STOCKHOLDERS
[Scudder Investments logo]
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Annual Report to Shareholders | ||
May 31, 2003 | ||
Contents |
<Click Here> Portfolio Management Review <Click Here> Investment Portfolio <Click Here> Financial Statements <Click Here> Financial Highlights <Click Here> Notes to Financial Statements <Click Here> Report of Independent Auditors <Click Here> Tax Information <Click Here> Trustees and Officers <Click Here> Account Management Resources |
Scudder Investments is part of Deutsche Asset Management, which is the marketing name in the US for the asset management activities of Deutsche Bank AG, Deutsche Investment Management Americas Inc., Deutsche Asset Management Inc., Deutsche Asset Management Investment Services Ltd., Deutsche Bank Trust Company Americas and Scudder Trust Company.
This report must be preceded or accompanied by a prospectus. To obtain a prospectus for any of our funds, refer to the Account Management Resources information provided in the back of this booklet. The prospectus contains more complete information, including a description of the risks of investing in the fund, management fees and expenses. Please read it carefully before you invest or send money.
Fund shares are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Fund shares involve investment risk, including possible loss of principal.
Scudder U.S. Treasury Money Fund: A Team Approach to Investing
Deutsche Investment Management Americas Inc. ("DeIM" or the "Advisor"), which is part of Deutsche Asset Management, is the investment advisor for Scudder U.S. Treasury Money Fund. DeIM and its predecessors have more than 80 years of experience managing mutual funds and DeIM provides a full range of investment advisory services to institutional and retail clients. DeIM is also responsible for selecting brokers and dealers and for negotiating brokerage commissions and dealer charges.
Deutsche Asset Management is a global asset management organization that offers a wide range of investing expertise and resources. This well-resourced global investment platform brings together a wide variety of experience and investment insight across industries, regions, asset classes and investing styles.
DeIM is an indirect, wholly owned subsidiary of Deutsche Bank AG. Deutsche Bank AG is a major global banking institution that is engaged in a wide range of financial services, including investment management, mutual funds, retail, private and commercial banking, investment banking and insurance.
Portfolio Manager
Darlene M. Rasel
Managing Director of Deutsche Asset Management and Lead Manager of the fund.
• Joined Deutsche Asset Management in 1987 and the fund in 2002.
• Over ten years of investment industry experience.
• Responsible for managing the Advisor's money market and government mutual funds.
In the following interview, Lead Portfolio Manager Darlene Rasel and other members of the fund's investment team discuss the market environment and investment strategy for the fund's most recent fiscal year ended May 31, 2003.
Q: How did the fund perform over its most recent fiscal year?
A: Over the 12 months ended May 31, 2003, the fund's seven-day yield declined from 1.05% on May 31, 2002 to 0.54%, reflecting the Federal Open Market Committee (FOMC) decision to reduce the federal funds rate by 50 basis points on November 6, 2002. For the 12-month period ended May 31, 2003, Class S shares of the fund returned 0.77%, compared with the 0.78% average return of taxable US Treasury money market funds.1 (Past performance is no guarantee of future results. The yield quotation more closely reflects the current earnings of the money market fund than the total return quotation.)
1 Taxable money market funds as defined by Lipper Inc. are those that invest principally in US Treasury obligations with dollar-weighted average maturities of less than 90 days and intend to keep a constant net asset value. Lipper figures represent the average of the total returns reported by all mutual funds designated by Lipper Inc. as falling into the category indicated.Q: How would you describe the economic environment for money market securities over the most recent 12-month period?
A: For the past year the economy has experienced one small shock after the other. Most notably, last summer a number of corporate scandals - including the Enron and WorldCom debacles - were brought to light. By January of this year, the buildup to the Iraqi war had begun in the public's mind, but that buildup really began last September, when President Bush gave a speech at the United Nations challenging the world body to rid Iraq of weapons of mass destruction. There hasn't been a long period of calm in which the economy had a chance to recover from previous shocks. In light of continued economic weakness, the Federal Reserve Board, at its November 6, 2002, Open Market Committee meeting, chose to lower the federal funds rate by 50 basis points to 1.25%. At that time, though many observers expected the Fed to cut interest rates by 25 basis points, few expected a 50-point move. With this action, the Fed clearly indicated that it wanted to boost the US economy. Monetary policy works with a lag, so the effect of a 50-basis-point reduction typically emerges six to nine months later. We are approaching the time when the effects should show up in improved economic statistics, but we believe the ongoing rebuilding effort in Iraq could be masking those effects.
Q: What impact did this economic environment have on money market yields?
A: Money market yields continued to fall during the period, and the money market yield curve has now flattened. This means that longer-term money market rates are approaching and even dipping below shorter-term rates. Short-term rates are anchored by the 1.25% federal funds rate. Until mid-March, the money market yield curve was positively sloped, with interest rates rising as maturities lengthened. If you purchased a three-, six- or 12-month security, there was a gradual yield pickup. That is not the case at present, though interest rate movements have been volatile during the time of the buildup to the war and through its aftermath.
Money market yield curve 5/31/02 versus 5/31/03 (7-day yield) |
![]() |
Length of Maturity (in months) |
Source: Deutsche Asset Management
This chart is not intended to represent the yield of any Scudder fund. Past performance is no guarantee of future results.
Q: What was the fund's strategy during the period?
A: During the 12-month period, we purchased Treasury securities across the short end of the yield curve, as well as some short-term repurchase agreements.
Fund's Class S Shares Yields | ||||
7-day | 7-day | |||
May 31, 2002 | 1.05% | 1.06% | ||
May 31, 2003 | 0.54% | 0.54% |
Yields will fluctuate and are not guaranteed.
An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although a money market fund seeks to preserve the value of an investment at $1.00 per share, it is possible to lose money by investing in a money market fund.
Q: What types of securities does the fund invest in?
A: The fund invests exclusively in short-term securities unconditionally guaranteed by the US Government (as to timely payment of principal and interest) and repurchase agreements fully backed by the US Treasury or Government agency securities. While an investment in the fund is not insured by the FDIC or guaranteed, the securities in which the fund invests are considered to have relatively lower risk due to the government guarantee and their relatively short maturities. The guarantee relates only to the prompt payment of principal and interest and does not remove market risks if the investment is sold prior to maturity.
Going forward, we plan to maintain our conservative investment strategies and standards. We continue to apply a careful approach to investing on behalf of the fund and to seek competitive yields for our shareholders.
The views expressed in this report reflect those of the portfolio managers only through the end of the period of the report as stated on the cover. The managers' views are subject to change at any time based on market and other conditions and should not be construed as a recommendation.
Principal Amount ($) | Value ($) | |
US Treasury Obligations 44.1% | ||
US Treasury Bills: 1.09%*, 11/6/2003 | 9,000,000 | 8,956,945 |
1.145%*, 10/30/2003 | 10,000,000 | 9,951,974 |
1.15%*, 9/18/2003 | 10,000,000 | 9,965,181 |
1.175%*, 6/26/2003 | 15,000,000 | 14,987,760 |
1.23%*, 7/17/2003 | 25,000,000 | 24,960,708 |
1.265%*, 6/5/2003 | 6,000,000 | 5,999,157 |
US Treasury Notes: | ||
2.75%, 9/30/2003 | 25,000,000 | 25,077,168 |
3%, 1/31/2004 | 15,000,000 | 15,172,122 |
5.25%, 8/15/2003 | 20,000,000 | 20,139,790 |
Total US Treasury Obligations (Cost $135,210,805) | 135,210,805 | |
Repurchase Agreements** 55.9% | ||
Credit Suisse First Boston Corp., 1.27%, dated 5/30/2003, to be repurchased at $57,006,033 on 6/2/2003 | 57,000,000 | 57,000,000 |
Greenwich Capital, 1.25%, dated 5/30/2003, to be repurchased at $41,004,271 on 6/2/2003 | 41,000,000 | 41,000,000 |
J.P. Morgan Chase Securities, Inc., 1.25%, dated 5/30/2003, to be repurchased at $50,005,208 on 6/2/2003 | 50,000,000 | 50,000,000 |
Merrill Lynch, 1.2%, dated 5/30/2003, to be repurchased at $14,001,400 on 6/2/2003 | 14,000,000 | 14,000,000 |
State Street Bank and Trust Company, 1.19%, dated 5/30/2003, to be repurchased at $9,265,919 on 6/2/2003 | 9,265,000 | 9,265,000 |
Total Repurchase Agreements (Cost $171,265,000) | 171,265,000 | |
Total Investment Portfolio - 100.0% (Cost $306,475,805) (a) | 306,475,805 |
* Annualized yield at the time of purchase; not a coupon rate.
** Repurchase agreements are fully collateralized by US Treasury or Government agency securities.
(a) The cost for federal income tax purposes was $306,475,805.
The accompanying notes are an integral part of the financial statements.
Statement of Assets and Liabilities as of May 31, 2003 | |
Assets | |
Investments in securities, at amortized cost (including repurchase agreements of $171,265,000) | $ 306,475,805 |
Cash | 120,241 |
Receivable for investments sold | 10,001,497 |
Interest receivable | 861,222 |
Receivable for Fund shares sold | 118,840 |
Other asset | 2,792 |
Total assets | 317,580,397 |
Liabilities | |
Dividends payable | 3,249 |
Payable for Fund shares redeemed | 206,130 |
Accrued management fee | 105,714 |
Other accrued expenses and payables | 108,882 |
Total liabilities | 423,975 |
Net assets, at value | $ 317,156,422 |
Net Assets | |
Net assets consist of: Undistributed net investment income | 37,892 |
Accumulated net realized gain (loss) | 2,419 |
Paid-in capital | 317,116,111 |
Net assets, at value | $ 317,156,422 |
Net Asset Value | |
Class AARP Net Asset Value, offering and redemption price per share ($14,944,105 / 14,943,976 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 1.00 |
Class S Net Asset Value, offering and redemption price per share ($302,212,317 / 302,209,542 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 1.00 |
The accompanying notes are an integral part of the financial statements.
Statement of Operations for the year ended May 31, 2003 | |
Investment Income | |
Income: Interest | $ 5,154,357 |
Expenses: Management fee | 1,309,248 |
Administrative fee | 1,306,711 |
Trustees' fees and expenses | 11,919 |
Other | 8,275 |
Total expenses | 2,636,153 |
Net investment income | 2,518,204 |
Net realized gain (loss) on investment transactions | 2,419 |
Net increase (decrease) in net assets resulting from operations | $ 2,520,623 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets | ||
Increase (Decrease) in Net Assets | Years Ended May 31, | |
2003 | 2002 | |
Operations: Net investment income | $ 2,518,204 | $ 6,281,419 |
Net realized gain (loss) on investment transactions | 2,419 | 39,433 |
Net increase (decrease) in net assets resulting from operations | 2,520,623 | 6,320,852 |
Distributions to shareholders from: Net investment income: Class AARP | (98,835) | (114,939) |
Class S | (2,417,650) | (6,205,050) |
Fund share transactions: Proceeds from shares sold | 147,700,013 | 279,872,841 |
Reinvestment of distributions | 2,433,611 | 6,036,942 |
Cost of shares redeemed | (167,489,141) | (335,205,024) |
Net increase (decrease) in net assets from Fund share transactions | (17,355,517) | (49,295,241) |
Increase (decrease) in net assets | (17,351,379) | (49,294,378) |
Net assets at beginning of period | 334,507,801 | 383,802,179 |
Net assets at end of period (including undistributed net investment income of $37,892 at May 31, 2003) | $ 317,156,422 | $ 334,507,801 |
The accompanying notes are an integral part of the financial statements.
Class AARP | |||
Years Ended May 31, | 2003 | 2002 | 2001a |
Selected Per Share Data | |||
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 |
Income from investment operations: Net investment income | .008 | .018 | .033 |
Less distributions from: Net investment income and net realized gains on investment transactions | (.008) | (.018) | (.033) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%) | .77 | 1.76 | 3.32** |
Ratios to Average Net Assets and Supplemental Data | |||
Net assets, end of period ($ millions) | 15 | 8 | 5 |
Ratio of expenses (%) | .81 | .80 | .80* |
Ratio of net investment income (%) | .77 | 1.76 | 4.92* |
a From October 2, 2000 (commencement of sales of Class AARP shares) to May 31, 2001. * Annualized ** Not annualized |
Class S | ||||||
Years Ended May 31, | 2003 | 2002 | 2001 | 2000 | 1999a | 1998b |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from investment operations: Net investment income | .008 | .018 | .052 | .047 | .040 | .047 |
Less distributions from: Net investment income and net realized gains on investment transactions | (.008) | (.018) | (.052) | (.047) | (.040) | (.047) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%) | .77 | 1.76 | 5.33c | 4.83c | 4.09c** | 4.83c |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 302 | 326 | 379 | 365 | 427 | 389 |
Ratio of expenses before expense reductions (%) | .81 | .80 | .94 | 1.06d | 1.08* | 1.00 |
Ratio of expenses after expense reductions (%) | .81 | .80 | .75 | .66d | .65* | .65 |
Ratio of net investment income (%) | .77 | 1.76 | 5.21 | 4.70 | 4.37* | 4.72 |
a For the eleven months ended May 31, 1999. On August 10, 1998, the Fund changed the fiscal year end from June 30 to May 31. b Years ended June 30. c Total returns would have been lower had certain expenses not been reduced. d The ratios of operating expenses excluding costs incurred in connection with a fund complex reorganization before and after expense reductions were 1.04% and .65%, respectively. * Annualized ** Not annualized |
A. Significant Accounting Policies
Scudder U.S. Treasury Money Fund (the "Fund") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end, diversified management investment company organized as a Massachusetts business trust.
The Fund offers multiple classes of shares. Shares of Class AARP are designed for members of AARP. Class S shares of the Fund are generally not available to new investors.
Investment income, realized and unrealized gains and losses, and certain fund-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of both classes of shares. All shares of the Fund have equal rights with respect to voting subject to class-specific arrangements.
The Fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Fund in the preparation of its financial statements.
Security Valuation. Portfolio securities are valued utilizing the amortized cost method permitted in accordance with Rule 2a-7 under the 1940 Act and certain conditions therein. Under this method, which does not take into account unrealized capital gains or losses on securities, an instrument is initially valued at its cost and thereafter assumes a constant accretion/amortization to maturity of any discount or premium.
Repurchase Agreements. The Fund may enter into repurchase agreements with certain banks and broker/dealers whereby the Fund, through its custodian or sub-custodian bank, receives delivery of the underlying securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the value is equal to at least the principal amount of the repurchase price plus accrued interest.
Federal Income Taxes. The Fund's policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable income to its shareholders. Accordingly, the Fund paid no federal income taxes and no federal income tax provision was required.
Distribution of Income and Gains. All of the net investment income of the Fund is declared as a daily dividend and is distributed to shareholders monthly. For purposes of the daily dividend, net investment income includes all realized gain (losses) on portfolio securities.
Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Temporary book and tax basis differences will reverse in a subsequent period. There were no significant book-to-tax differences for the Fund.
At May 31, 2003, the Fund's components of distributable earnings (accumulated losses) on a tax-basis were as follows:
Undistributed ordinary income* | $ 43,560 |
Capital loss carryforwards | $ - |
In addition, during the years ended May 31, 2003 and May 31, 2002, the tax character of distributions paid to shareholders by the Fund is summarized as follows:
2003 | 2002 | |
Distributions from ordinary income | $ 2,516,485 | $ 6,319,989 |
*For tax purposes short-term capital gains distributions are considered ordinary income distributions.
Other. Investment transactions are accounted for on the trade date. Interest income is recorded on the accrual basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. All discounts and premiums are accreted/amortized for both tax and financial reporting purposes.
B. Related Parties
Management Agreement. Under the Management Agreement, Deutsche Investment Management Americas Inc. ("DeIM" or the "Advisor"), the Advisor directs the investments of the Fund in accordance with its investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Fund. In addition to portfolio management services, the Advisor provides certain administrative services in accordance with the Management Agreement. The management fee payable under the Management Agreement is equal to an annual rate of 0.40% of the first $500,000,000 of the Fund's average daily net assets, 0.385% of the next $500,000,000 of such net assets and 0.37% of such net assets in excess of $1,000,000,000, computed and accrued daily and payable monthly. Accordingly, for the year ended May 30, 2003, the fee pursuant to the Management Agreement was equivalent to an annual effective rate of 0.40% of the Fund's average daily net assets.
Administrative Fee. Under the Administrative Agreement (the "Administrative Agreement"), the Advisor provides or pays others to provide substantially all of the administrative services required by the Fund (other than those provided by the Advisor under its Management Agreement with the Fund, as described above) in exchange for the payment by each class of the Fund of an administrative services fee (the "Administrative Fee") of 0.40% of average daily net assets of each class, computed and accrued daily and payable monthly.
Various third-party service providers, some of which are affiliated with the Advisor, provide certain services to the Fund under the Administrative Agreement. Scudder Fund Accounting Corporation, a subsidiary of the Advisor, computes the net asset value for the Fund and maintains the accounting records of the Fund. Scudder Service Corporation, also a subsidiary of the Advisor, is the transfer, shareholder service and dividend-paying agent for the shares of the Fund. Scudder Trust Company, an affiliate of the Advisor, provides subaccounting and recordkeeping services for the shareholders in certain retirement and employee benefit plans. These affiliated entities have in turn entered into various agreements with third-party service providers to provide these services. In addition, other service providers not affiliated with the Advisor provide certain services (i.e., custody, legal and audit) to the Fund under the Administrative Agreement. The Advisor pays the service providers for the provision of their services to the Fund and pays other Fund expenses, including insurance, registration, printing, postage and other costs. Certain expenses of the Fund will not be borne by the Advisor under the Administrative Agreement, such as taxes, brokerage, interest and extraordinary expenses, and the fees and expenses of the Independent Trustees (including the fees and expenses of their independent counsel). For the year ended May 31, 2003, the Administrative Fee was as follows:
Administrative Fee | Total Aggregated | Unpaid at May 31, 2003 |
Class AARP | $ 53,041 | $ 5,179 |
Class S | 1,253,670 | 102,614 |
$ 1,306,711 | $ 107,793 |
The Administrative Agreement between the Advisor and the Fund will terminate effective September 30, 2003 and the Fund will directly bear the cost of the expenses formerly covered under the Administrative Agreement. Effective October 1, 2003 through September 30, 2005, the Advisor has agreed to contractually waive all or a portion of its management fee and reimburse or pay certain operating expenses of the Fund to the extent necessary to maintain the operating expenses of each class at 1.00% of average daily net assets (excluding certain expenses such as Rule 12b-1 and/or service fees, trustee and trustee counsel fees, extraordinary expenses, taxes, brokerage and interest).
Trustees' Fees and Expenses. The Fund pays each Trustee not affiliated with the Advisor retainer fees plus specified amounts for attended board and committee meetings.
Other Related Parties. AARP through its affiliates monitors and approves the AARP Investments Program from the Advisor. The Advisor has agreed to pay a fee to AARP and/or its affiliates in return for the use of the AARP trademark and services relating to investments by AARP members in Class AARP shares of the Fund. This fee is calculated on a daily basis as a percentage of the combined net assets of the AARP classes of all funds managed by the Advisor. The fee rates, which decrease as the aggregate net assets of the AARP classes become larger, are as follows: 0.07% of the first $6,000,000,000 of net assets, 0.06% of the next $10,000,000,000 of such net assets and 0.05% of such net assets thereafter. These amounts are used for the general purposes of AARP and its members.
C. Expense Off-Set Arrangement
The Fund has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund's custodian expenses. During the year ended May 31, 2003, there were no custodian credits earned.
D. Line of Credit
The Fund and several other affiliated funds (the "Participants") share in a $1.25 billion revolving credit facility administered by J.P. Morgan Chase Bank for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated, pro rata based upon net assets, among each of the Participants. Interest is calculated at the Federal Funds Rate plus 0.5 percent. The Fund may borrow up to a maximum of 33 percent of its net assets under this agreement.
E. Share Transactions
The following table summarizes share and dollar activity in the Fund:
Year Ended May 31, 2003 | Year Ended May 31, 2002 | |||
Shares | Dollars | Shares | Dollars | |
Shares sold | ||||
Class AARP | 16,065,042 | $ 16,065,042 | 9,393,573 | $ 9,393,605 |
Class S | 131,634,971 | 131,634,971 | 270,481,468 | 270,479,236 |
$ 147,700,013 | $ 279,872,841 | |||
Shares issued to shareholders in reinvestment of distributions | ||||
Class AARP | 94,920 | $ 94,919 | 108,193 | $ 108,193 |
Class S | 2,338,692 | 2,338,692 | 5,928,749 | 5,928,749 |
$ 2,433,611 | $ 6,036,942 | |||
Shares redeemed | ||||
Class AARP | (9,454,832) | $ (9,454,832) | (6,285,041) | $ (6,285,041) |
Class S | (158,034,309) | (158,034,309) | (328,920,087) | (328,919,983) |
$ (167,489,141) | $ (335,205,024) | |||
Net increase (decrease) | ||||
Class AARP | 6,705,130 | $ 6,705,129 | 3,216,725 | $ 3,216,757 |
Class S | (24,060,646) | (24,060,646) | (52,509,870) | (52,511,998) |
$ (17,355,517) | $ (49,295,241) |
To the Trustees and the Shareholders of Scudder U.S. Treasury Money Fund:
In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and of changes in net assets and the financial highlights, present fairly, in all material respects, the financial position of Scudder U.S. Treasury Money Fund (the "Fund") at May 31, 2003, and the results of its operations, the changes in its net assets and the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at May 31, 2003 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
Boston, Massachusetts | PricewaterhouseCoopers LLP |
By now shareholders for whom year-end tax reporting is required by the IRS should have received their Form 1099-DIV and tax information letter from the Fund.
Please consult a tax advisor if you have questions about federal or state income tax laws, or on how to prepare your tax returns. If you have specific questions about your account, please call 1-800-SCUDDER.
The following table presents certain information regarding the Trustees and Officers of the fund as of May 31, 2003. Each individual's age is set forth in parentheses after his or her name. Unless otherwise noted, (i) each individual has engaged in the principal occupation(s) noted in the table for at least the most recent five years, although not necessarily in the same capacity, and (ii) the address of each individual is c/o Deutsche Asset Management, Two International Place, Boston, Massachusetts 02110-4103. Each Trustee's term of office extends until the next shareholder's meeting called for the purpose of electing Trustees and until the election and qualification of a successor, or until such Trustee sooner dies, resigns or is removed as provided in the governing documents of the fund.
Non-Interested Trustees | ||
Name, Age, Position(s) Held with the Fund and Length of Time Served1 | Principal Occupation(s) During Past 5 Years and Other Directorships Held | Number of Funds in Fund Complex Overseen |
Henry P. Becton, Jr. (59) Trustee, 1990-present | President, WGBH Educational Foundation. Directorships: American Public Television; New England Aquarium; Becton Dickinson and Company (medical technology company); Mass Corporation for Educational Telecommunications; The A.H. Belo Company (media company); Committee for Economic Development; Concord Academy; Public Broadcasting Service; Boston Museum of Science | 47 |
Dawn-Marie Driscoll (56) Trustee, 1987-present | President, Driscoll Associates (consulting firm); Executive Fellow, Center for Business Ethics, Bentley College; formerly, Partner, Palmer & Dodge (1988-1990); Vice President of Corporate Affairs and General Counsel, Filene's (1978-1988). Directorships: CRS Technology (technology service company); Advisory Board, Center for Business Ethics, Bentley College; Board of Governors, Investment Company Institute; former Chairman, ICI Directors Services Committee | 47 |
Keith R. Fox (49) Trustee, 1996-present | Managing Partner, Exeter Capital Partners (private equity funds). Directorships: Facts on File (school and library publisher); Progressive Holding Corporation (kitchen importer and distributor); Cloverleaf Transportation Inc. (trucking); K-Media, Inc. (broadcasting); Natural History, Inc. (magazine publisher); National Association of Small Business Investment Companies (trade association) | 47 |
Louis E. Levy (70) Trustee, 2002-present | Retired. Formerly, Chairman of the Quality Control Inquiry Committee, American Institute of Certified Public Accountants (1992-1998); Partner, KPMG LLP (1958-1990). Directorships: Household International (banking and finance); ISI Family of Funds (registered investment companies; 4 funds overseen); Kimberly-Clark Corporation (personal consumer products) | 47 |
Jean Gleason Stromberg (59) Trustee, 1999-present | Retired. Formerly, Consultant (1997-2001); Director, U.S. General Accounting Office (1996-1997); Partner, Fulbright & Jaworski, L.L.P. (law firm) (1978-1996). Directorships: The William and Flora Hewlett Foundation; Service Source, Inc. | 47 |
Jean C. Tempel (60) Trustee, 1994-present | Managing Partner, First Light Capital (venture capital group) (2000-present); formerly, Special Limited Partner, TL Ventures (venture capital fund) (1996-1998); General Partner, TL Ventures (1994-1996); President and Chief Operating Officer, Safeguard Scientifics, Inc. (public technology business incubator company) (1991-1993). Directorships: Sonesta International Hotels, Inc.; Aberdeen Group (technology research); The Reference, Inc. (IT consulting for financial services); United Way of Mass Bay. Trusteeships: Connecticut College, Chair, Finance Committee; Northeastern University, Chair, Funds and Endowment Committee | 47 |
Carl W. Vogt (67) Trustee, 2002-present | Senior Partner, Fulbright & Jaworski, L.L.P. (law firm); formerly, President (interim) of Williams College (1999-2000); President, certain funds in the Deutsche Asset Management Family of Funds (formerly, Flag Investors Family of Funds) (registered investment companies) (1999-2000). Directorships: Yellow Corporation (trucking); American Science & Engineering (x-ray detection equipment); ISI Family of Funds (registered investment companies, 4 funds overseen); National Railroad Passenger Corporation (Amtrak); formerly, Chairman and Member, National Transportation Safety Board | 47 |
Interested Trustees and Officers2 | ||
Name, Age, Position(s) Held with the Fund and Length of Time Served1 | Principal Occupation(s) During Past 5 Years and Other Directorships Held | Number of Funds in Fund Complex Overseen |
Richard T. Hale3 (57) Chairman and Trustee, 2002-present President, 2003-present | Managing Director, Deutsche Investment Management Americas Inc. (2003-present); Managing Director, Deutsche Bank Securities Inc. (formerly Deutsche Banc Alex. Brown Inc.) and Deutsche Asset Management (1999 to present); Director and President, Investment Company Capital Corp. (registered investment advisor) (1996 to present); Director, Deutsche Global Funds, Ltd. (2000 to present), CABEI Fund (2000 to present), North American Income Fund (2000 to present) (registered investment companies); Director, Scudder Global Opportunities Fund (since 2003); Director/Officer Deutsche/Scudder Mutual Funds (various dates); President, Montgomery Street Income Securities, Inc. (2002 to present) (registered investment companies); Vice President, Deutsche Asset Management, Inc. (2000 to present); formerly, Director, ISI Family of Funds (registered investment companies; 4 funds overseen) (1992-1999) | 200 |
Daniel O. Hirsch3 (49) Vice President and Assistant Secretary, 2002-present | Managing Director, Deutsche Asset Management (2002-present) and Director, Deutsche Global Funds Ltd. (2002-present); formerly, Director, Deutsche Asset Management (1999-2002); Principal, BT Alex. Brown Incorporated (now Deutsche Bank Securities Inc.) (1998-1999); Assistant General Counsel, United States Securities and Exchange Commission (1993-1998) | n/a |
John Millette (40) Vice President and Secretary, 1999-present | Director, Deutsche Asset Management | n/a |
Christine Haddad (31) Vice President, 2002-present | Director, Deutsche Asset Management | n/a |
Kenneth Murphy (39) Vice President, 2002-present | Vice President, Deutsche Asset Management (2000-present); Vice President, Scudder Distributors, Inc. (December 2002-present); formerly, Director, John Hancock Signature Services (1992-2000) | n/a |
Darlene M. Rasel (51) Vice President, 2002-present | Managing Director, Deutsche Asset Management | n/a |
Charles A. Rizzo (45) Treasurer, 2002-present | Director, Deutsche Asset Management (April 2000- present). Formerly, Vice President and Department Head, BT Alex. Brown Incorporated (now Deutsche Bank Securities Inc.) (1998-1999); Senior Manager, Coopers & Lybrand L.L.P. (now PricewaterhouseCoopers LLP) (1993-1998) | n/a |
Salvatore Schiavone (37) Assistant Treasurer, 2003-present | Director, Deutsche Asset Management | n/a |
Lucinda H. Stebbins (57) Assistant Treasurer, 2003-present | Director, Deutsche Asset Management | n/a |
Kathleen Sullivan D'Eramo (46) Assistant Treasurer, 2003-present | Director, Deutsche Asset Management | n/a |
Caroline Pearson (41) Assistant Secretary, 1997-present | Managing Director, Deutsche Asset Management | n/a |
1 Length of time served represents the date that each Trustee was first elected to the common board of trustees which oversees a number of investment companies, including the fund, managed by the Advisor. For the Officers of the fund, length of time served represents the date that each Officer was first elected to serve as an officer of any fund overseen by the aforementioned common board of trustees.
2 As a result of their respective positions held with the Advisor, these individuals are considered "interested persons" of the Advisor within the meaning of the 1940 Act, as amended. Interested persons receive no compensation from the fund.
3 Address: One South Street, Baltimore, Maryland
The fund's Statement of Additional Information ("SAI") includes additional information about the Trustees. The SAI is available, without charge, upon request. If you would like to request a copy of the SAI, you may do so by calling the following toll-free number: 1-800-SCUDDER.
For shareholders of Class AARP and Class S
AARP Investment Program Shareholders | Scudder Class S Shareholders | |
Automated Information Lines | Easy-Access Line (800) 631-4636 | SAIL™ (800) 343-2890 |
Personalized account information, the ability to exchange or redeem shares, and information on other Scudder funds and services via touchtone telephone. | ||
Web Sites | aarp.scudder.com | myScudder.com |
View your account transactions and balances, trade shares, monitor your asset allocation, and change your address, 24 hours a day. Obtain prospectuses and applications, blank forms, interactive worksheets, news about Scudder funds, subscription to fund updates by e-mail, retirement planning information, and more. | ||
For more information | (800) 253-2277 To speak with an AARP Investment Program service representative | (800) SCUDDER To speak with a Scudder service representative. |
Written correspondence | AARP Investment Program from Scudder Investments PO Box 219735Kansas City, MO 64121-9735 | Scudder Investments PO Box 219669Kansas City, MO 64121-9669 |
Principal Underwriter | If you have questions, comments or complaints, contact: Scudder Distributors, Inc. 222 South Riverside PlazaChicago, IL 60606 (800) 621-1148 | |
Class AARP | Class S | |
Nasdaq Symbol | SUSXX | SCGXX |
Fund Number | 159 | 059 |
Notes |
ITEM 2. CODE OF ETHICS. Not currently applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not currently applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not currently applicable. ITEM 5. [RESERVED] ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIERS AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) The Chief Executive and Financial Officers concluded that the Registrant's Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.Form N-CSR Item F SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Registrant: Scudder U.S. Treasury Money Fund By: /s/Richard T. Hale ----------------------------------- Richard T. Hale Chief Executive Officer Date: July 25, 2003 ----------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Registrant: Scudder U.S. Treasury Money Fund By: /s/Richard T. Hale ----------------------------------- Richard T. Hale Chief Executive Officer Date: July 25, 200 ----------------------------------- By: /s/Charles A. Rizzo ----------------------------------- Charles A. Rizzo Chief Financial Officer Date: July 25, 2003 -----------------------------------