UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM N-CSR Investment Company Act file number 811-03196 CASH RESERVE FUND ----------------- (Exact Name of Registrant as Specified in Charter) One South Street, Baltimore, Maryland 21202 -------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, including Area Code: (617) 295-2663 -------------- Salvatore Schiavone Two International Place Boston, Massachusetts 02110 --------------------------------------- (Name and Address of Agent for Service) Date of fiscal year end: 3/31 Date of reporting period: 9/30/03ITEM 1. REPORT TO STOCKHOLDERS
Deutsche Bank Alex. Brown
Cash Reserve Fund, Inc.
Prime Series
Treasury Series
Tax-Free Series
Semiannual Report to Shareholders
September 30, 2003
[Deutsche Bank logo]
Table of Contents |
Portfolio Management Review <Click Here> Cash Reserve Fund, Inc. Schedule of Investments <Click Here> Statements of Assets and Liabilities <Click Here> Statements of Operations <Click Here> Statements of Changes in Net Assets <Click Here> Financial Highlights <Click Here> Notes to Financial Statements <Click Here> Privacy Statement <Click Here> Other Information <Click Here> |
Please see the fund's prospectus for more complete information, including a complete description of the fund's investment policies. To obtain a prospectus, talk to your financial representative or call Shareholder Services at (800) 730-1313. The prospectus contains more complete information, including management fees and expenses. Please read it carefully before you invest or send money.
This report must be preceded or accompanied by a prospectus.
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.
In the following interview, New York-based Portfolio Managers Darlene M. Rasel, Jan Buenner and Joe Benevento discuss the Cash Reserve Fund, Inc.'s strategy and the market environment during the six-month period ended September 30, 2003.
Q: How did the fund's series perform?
A: The Prime Series had a 7-day yield on September 30, 2003 of 0.43%, compared with 0.39% for its benchmark, the iMoneyNet First Tier Retail Money Funds Average1. The Treasury Series had a 7-day yield on September 30, 2003 of 0.29%, compared with 0.34% for its benchmark, the iMoneyNet Treasury Retail Money Funds Average.1 The Tax-Free Series had a 7-day yield on September 30, 2003 of 0.34%, compared with 0.43% for its benchmark, the iMoneyNet National Retail Tax-Free Money Funds Average.1At the end of the semiannual period, the fund's net assets totaled $4,649.8 million (Prime Series $3,224.5 million; Treasury Series $470.1 million; Tax-Free Series $955.2 million).
1 The iMoneyNet First Tier Retail Money Funds Average, Treasury Retail Money Funds Average, and National Retail Tax-Free Money Funds Average are compiled by iMoneyNet, Inc., an independent rating service. The averages are for categories of similar money market funds.You cannot invest directly in an average.We continued to manage the fund conservatively, maintaining high portfolio quality, adjusting weighted average maturities in response to market conditions, and strictly limiting exposure to any particular issuer. As evidence of our insistence on these high investment standards, the Prime, Treasury and Tax-Free Series each maintained a "AAAm" rating, as measured by Standard & Poor's (S&P). This rating is the highest that S&P awards to money market funds. Of course, ratings are subject to change and do not remove market risk.
Q: Will you provide us with specific examples of your investment strategies for the Prime Series?
A: Our strategy for the Prime Series continued to be concentrated on investing in high-quality issues. As of September 30, 2003, approximately 60% of the Prime Series was invested in securities rated A1+/P1 and approximately 20% in securities rated A1/P1 by S&P and Moody's. The balance of the series was primarily invested in federal agency securities with long-term AAA-ratings and in AAA-rated money market funds, as rated by Standard & Poor's and Moody's Investors Service.2
2 The ratings of Moody's Investors Service, Inc. (Moody's) and Standard and Poor's Corporation (S&P) represent these companies' opinions as to the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality. The fund's credit quality does not remove market risk.Early in the semiannual period, we were not of the opinion that the Federal Reserve Board's next interest rate cut would be 50 basis points. When, in the months leading up to the Federal Reserve Board's June 25, 2003 meeting, interest rates incorporated more than 25 basis points of cuts, we held off buying securities with longer-term maturities. While this stance led to a temporary reduction in the weighted average maturity of the series to approximately 40 days, the decision proved correct. After the Federal Reserve Board reduced the federal funds rate by 25 basis points to 1.00%, rates moved higher, and we took advantage of the higher yields and steeper yield curve by adding duration through the purchase once again of longer-dated securities.3,4 Indeed, we maintained a weighted average maturity of 50 to 55 days for most of the third calendar quarter.
3 The federal funds rate is the interest rate banks charge each other for overnight loans and is a closely watched indicator of US Federal Reserve Board monetary policy.4 Duration is a measure of bond price volatility. Duration can be defined as the approximate percentage change in price for a 1-percentage-point change in market interest rate levels. A duration of 5 means that if interest rates fall 1-percentage-point, the price of a bond should rise by approximately 5%, and the price should fall by 5% for a 1-percentage-point rise in interest rates. Bonds with a shorter duration are typically not as sensitive to interest rate movements as are bonds with a longer duration. They will, therefore, experience less price erosion in a rising-interest-rate environment.
Another successful strategy for the series during the period was adding callable federal agency securities throughout the semiannual period. These securities offered an attractive yield pick-up over securities with no call feature and, since they are issued by US government agencies, enhanced the series' average credit quality as well.
As of September 30, 2003, 26.0% of the Prime Series was invested in commercial paper, 27.0% in repurchase agreements, 15.7% in certificates of deposit and bank notes, 19.2% in floating rate notes, and 12.1% in US government agency securities, money market funds and cash or cash equivalents.
Q: What was your investment strategy in the Treasury Series?
A: As in the Prime Series, we held off buying securities with longer-term maturities during the months leading up to the June 25, 2003 Federal Reserve Board meeting. Rather, we focused in the Treasury Series on purchases of very short-term Treasuries. After the Federal Reserve Board's action, rates moved higher, and we used this opportunity to resume purchases of longer-dated securities at rates higher than immediately before June 25, 2003. During the third calendar quarter, there was an increase in supply of short-term Treasury securities as the US government increased issuance to help pay for the growing national debt. As a result, short-term Treasury yields rose, moving closer to the federal funds rate of 1.00%. We were able to take advantage of these higher yields available by extending the weighted average maturity of the series. For most of the semiannual period, we kept the series' weighted average maturity in the 50 to 60 day range. At the end of the semiannual period, 98.7% of the portfolio was invested in short-term Treasury bills and 1.3% in short-term Treasury notes.
Q: What were the major factors influencing your strategy in the Tax-Free Series?
A: We generally targeted the weighted average maturity of the Tax-Free Series to be in a neutral-to-the-benchmark range of 40 to 45 days. Neutral positioning helped us navigate through a volatile period for both interest rates and unfolding state and local government budget troubles. We actively adjusted the series' relative maturity position to prepare for seasonal events, such as tax-time redemptions in April 2003, and supply/demand imbalances in the market, such as increased issuance in June and July, 2003.
We continued to focus on the highest-quality investments while seeking competitive yields across the municipal investment spectrum. In particular, we emphasized essential services revenue issues and what is known as enhanced paper, i.e. securities guaranteed by a third party such as a bank or insurance company. The fund was able to take advantage of increased issuance in the market during the semiannual period by participating in high-quality, liquid municipal notes sales, such as the state of Texas's tax and revenue anticipation notes, making purchases at attractive yield levels. Because of falling revenues, rising expenditures and government inaction, the state of California was downgraded during the period by all three of the major ratings agencies. Having sold virtually all of the series' state of California holdings by the end of the last fiscal year, we continued to avoid unenhanced exposure to the state and related credits.
At the end of the semiannual period, 71.6% of the series was invested in municipal variable rate demand notes and 28.4% in municipal fixed-rate notes, bonds and commercial paper.
Q: The Federal Reserve Board made only one cut in interest rates during the semiannual period. What dominated money market activity instead?
A: Federal Reserve Board policy still had a major impact on the backdrop to money market activity, as did the US economy.
Economic and political conditions improved in the early months of the semiannual period. Corporate earnings generally exceeded expectations, the government's tax cut was widely perceived to offer stimulus to the economy and the conclusion of active military operations in Iraq provided a welcome sigh of relief. On the other hand, corporate spending remained reluctant, and unemployment gradually worsened. With the exception of the housing sector, consumer spending was restrained.
On May 6, 2003, the Federal Reserve Board kept the targeted federal funds rate unchanged at 1.25% but indicated it would maintain its accommodative monetary policy, as it believed the probability of deflation exceeded that of inflation over the next few quarters. Thus, money market yields continued to fall.
By the June 25, 2003 meeting of the Federal Reserve Board, the financial markets were anticipating a minimum of a 25-basis-point interest rate cut, with a likely probability of 50 basis points. The Federal Reserve Board's decision to lower the federal funds
7-Day Current Yield | (as of 9/30/03) |
Prime Series5 iMoneyNet First Tier Retail Money Funds Average6 | .43% .39% |
Treasury Series5 iMoneyNet Treasury Retail Money Funds Average6 | .29%7 .34% |
Tax-Free Series5, 8 iMoneyNet National Retail Tax-Free Money Funds Average6 | .34% .43% |
5 Past performance is not indicative of future results. Yields will fluctuate. "Current Yield" is computed pursuant to a SEC standardized formula and represents the income generated by an investment in the Fund over a 7-day period. This income is then annualized.
6 Money Fund Report Averages, a service of iMoneyNet, Inc., are averages for categories of similar money market funds.
7 The investment advisor has agreed to waive fees/reimburse expenses. Without such fee waivers the 7-day current yield would have been 0.24%.
8 For certain investors a portion of the fund's income may be subject to the federal alternative minimum tax. Distribution of the fund's income may be subject to state and local taxes.
An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
rate by only a quarter of a point to 1.00% was greeted with open disappointment. The broad fixed-income markets sold off dramatically, and money market yields rose significantly by July, especially at the longer end of the money market yield curve. Thus, the yield curve went from flat to quite steep by mid-August. Compounding matters was news of an improving US economy. While it remained a jobless recovery, second-calendar-quarter gross domestic product growth came in higher than anticipated, consumer spending accelerated and corporate earnings announcements were still primarily positive.
After peaking in late August to early September, money market yields declined somewhat by the end of the semiannual period. Most investors believed that there would be no official increase in interest rates until well into 2004.
Q: Were the municipal money markets affected by the same factors as their taxable counterparts?
A: The municipal money market yield curve generally followed a trend similar to that of its taxable counterpart. Municipal market yields declined in spite of an increase in municipal issuance. Indeed, supply of short-term municipal paper increased sharply during the period due to soft growth in certain key sectors of the economy, a slowdown in state tax collection and widespread budget shortfalls. The state of California topped the list with the issuance of $12 billion of revenue anticipation notes during the semiannual period, with the expectation of additional note issuance in the coming months to further fund cash flow needs. The state of Texas issued $7.4 billion in tax and revenue anticipation notes. After the Federal Reserve Board cut interest rates by less than the market expected in late June, one-year note yields rose significantly, and the municipal money market yield curve shifted from an inverted position to a positive slope, signaling investor preference for securities with shorter maturities. The increased supply and heavy dealer inventory added pressure to the municipal note market, driving one-year yields to levels not seen since April 2003. While the yield on one-year municipal notes declined by just three basis points over the semiannual period to end at 1.09% on September 30, 2003, one-year note yields went as low as 0.83% in mid-June in the run-up to the Federal Reserve Board cut and then rose to 1.18% in early September as the market sold off following the interest rate cut.
Municipal credit quality continued to be impacted during the period, as municipalities across the country experienced declining revenue sources and an increase in their "fixed" costs, such as Medicaid, education and prisons.
Q: Do you anticipate any change in your management strategies for the three series?
A: In each of our series, we will continue to concentrate the portfolios in very high quality credits and maintain our conservative investment strategies and standards for the foreseeable future. We continue to believe in the conservative approach that we apply to investing on behalf of the series and will continue to seek competitive yields for our shareholders.
The views expressed in this report reflect those of the portfolio managers only through the end of the period of the report as stated on the cover. The managers' views are subject to change at any time based on market and other conditions and should not be construed as a recommendation.
Schedule of Investments as of September 30, 2003 (Unaudited) | |
Prime Series | Principal | Value ($) |
Certificates of Deposit and Bank Notes 15.7% | ||
Abbey National Treasury Services PLC, 1.19%, 10/1/2003 | 50,000,000 | 50,000,000 |
Canadian Imperial Bank of Commerce, 1.25%, 3/10/2004 | 50,000,000 | 49,998,344 |
Credit Suisse First Boston, 1.05%, 10/16/2003 | 40,000,000 | 40,000,000 |
Danske Bank, 1.12%, 6/30/2004 | 26,000,000 | 26,000,975 |
DEPFA Bank Europe PLC, 1.11%, 1/20/2004 | 50,000,000 | 50,000,000 |
HBOS Treasury Services, 1.08%, 12/15/2003 | 30,000,000 | 30,000,000 |
ING Bank N.V., 1.05%, 11/12/2003 | 25,000,000 | 25,000,000 |
Landesbank Hessen-Thuringen Girozentrale, 1.40%, 1/29/2004 | 50,000,000 | 50,000,000 |
Natexis Banque Populaire, 1.06%, 10/24/2003 | 50,000,000 | 50,000,159 |
Societe Generale, 1.13%, 7/7/2004 | 46,000,000 | 46,000,000 |
Toronto Dominion Bank, 1.32%, 4/15/2004 | 60,000,000 | 59,997,570 |
Westdeutsche Landesbank AG, 1.32%, 4/15/2004 | 29,000,000 | 28,998,435 |
Total Certificates of Deposit and Bank Notes (Cost $505,995,483) | 505,995,483 | |
Commercial Paper 26.0% | ||
Apreco LLC, 1.07%**, 10/31/2003 | 40,000,000 | 39,964,333 |
CC (USA), Inc., 1.34%, 8/13/2004 | 25,000,000 | 25,000,000 |
Credit Suisse First Boston, 1.08%**, 10/6/2003 | 33,000,000 | 32,995,050 |
Fortis Funding LLC, 1.05%**, 10/30/2003 | 20,000,000 | 19,983,083 |
General Electric Capital International Funding, Inc., 1.08%**, 11/21/2003 | 40,000,000 | 39,938,800 |
General Electric Capital International Funding, Inc., 1.10%**, 11/4/2003 | 50,000,000 | 49,948,056 |
Goldman Sachs Group, Inc., 1.11%, 11/17/2003 | 50,000,000 | 50,000,000 |
Grand Metro Investment Corp., 1.14%**, 1/6/2004 | 30,000,000 | 29,910,442 |
Greyhawk Funding LLC, 1.09%**, 11/17/2003 | 50,000,000 | 49,928,847 |
Greyhawk Funding LLC, 1.09%**, 11/21/2003 | 60,000,000 | 59,907,350 |
Hamburgische Landesbank Girozentrale, 1.32%**, 2/27/2004 | 40,000,000 | 39,781,467 |
Lake Constance Funding, 1.07%**, 10/10/2003 | 30,300,000 | 30,291,895 |
Lake Constance Funding, 1.07%**, 10/17/2003 | 30,000,000 | 29,985,733 |
Lake Constance Funding, 1.07%**, 11/18/2003 | 45,000,000 | 44,935,800 |
Lake Constance Funding, 1.07%**, 11/20/2003 | 25,000,000 | 24,962,847 |
Natexis Banque Populaire, 1.05%**, 10/7/2003 | 25,000,000 | 24,995,646 |
Perry Global Funding LLC, 1.09%**, 11/21/2003 | 15,000,000 | 14,976,838 |
Perry Global Funding LLC, 1.12%**, 3/8/2004 | 25,000,000 | 24,876,333 |
Scaldis Capital LLC, 1.05%**, 10/27/2003 | 66,928,000 | 66,877,246 |
Scaldis Capital LLC, 1.06%**, 10/15/2003 | 40,000,000 | 39,983,511 |
Sheffield Receivables Corp., 1.05%**, 1/8/2004 | 30,000,000 | 29,913,375 |
Sheffield Receivables Corp., 1.08%**, 10/3/2003 | 25,000,000 | 24,998,500 |
Sheffield Receivables Corp., 1.08%**, 10/20/2003 | 20,000,000 | 19,988,600 |
Three Rivers Funding Corp., 1.07%**, 10/2/2003 | 25,000,000 | 24,999,257 |
Total Commercial Paper (Cost $839,143,009) | 839,143,009 | |
Floating Rate Notes 19.2% | ||
American Honda Finance Corp., 1.06%*, 7/9/2004 | 30,000,000 | 30,000,000 |
American Honda Finance Corp., 1.07%*, 4/8/2004 | 15,000,000 | 14,999,221 |
American Honda Finance Corp., 144A, 1.09%*, 9/16/2004 | 15,000,000 | 15,000,000 |
Bayerische Landesbank Girozentrale, 1.08%*, 8/25/2004 | 20,000,000 | 19,999,943 |
Canadian Imperial Bank of Commerce, 1.07%*, 5/28/2004 | 50,000,000 | 49,995,068 |
General Electric Capital Assurance Co., 1.23%*, 9/1/2004 | 45,000,000 | 45,000,000 |
General Electric Capital Corp., 1.18%*, 11/3/2003 | 10,000,000 | 10,001,136 |
General Electric Capital Corp., 1.24%*, 5/7/2004 | 10,000,000 | 10,008,882 |
Morgan Stanley Dean Witter & Co., 1.27%*, 12/1/2003 | 40,000,000 | 40,000,000 |
Morgan Stanley Dean Witter & Co., 1.27%*, 2/20/2004 | 40,000,000 | 40,000,000 |
New York Life, 1.21%*, 9/21/2004 | 40,000,000 | 40,000,000 |
Sheffield Receivables Corp., 1.08%*, 2/25/2004 | 70,000,000 | 70,000,000 |
Swedish National Housing Finance Corp., 1.16%*, 5/28/2004 | 35,000,000 | 35,010,189 |
Toyota Motor Credit Corp., 1.39%*, 9/28/2004 | 50,000,000 | 50,082,745 |
Travelers Insurance Co., 1.18%*, 1/27/2004 | 50,000,000 | 50,000,000 |
Westdeutsche Landesbank AG, 1.07%*, 5/28/2004 | 100,000,000 | 99,986,770 |
Total Floating Rate Notes (Cost $620,083,954) | 620,083,954 | |
Shares | Value ($) | |
Money Market Funds 6.1% | ||
AIM Liquid Assets Portfolio, 1.02% (b) | 151,718,000 | 151,718,000 |
Federated Prime Cash Obligation Fund, 0.99% (b) | 5,000,000 | 5,000,000 |
Federated Prime Obligation Fund, 1.00% (b) | 40,000,000 | 40,000,000 |
Total Money Market Funds (Cost $196,718,000) | 196,718,000 | |
Principal | Value ($) | |
US Government Agency Obligations 6.0% | ||
Federal Home Loan Mortgage Corp., 1.04%**, 11/4/2003 | 45,600,000 | 45,555,211 |
Federal Home Loan Mortgage Corp., 1.20%, 8/6/2004 | 35,000,000 | 35,000,000 |
Federal National Mortgage Association, 1.06%, 2/18/2005 | 40,000,000 | 39,991,661 |
Federal National Mortgage Association, 1.38%, 5/7/2004 | 25,000,000 | 25,000,000 |
Federal National Mortgage Association, 1.45%, 9/14/2004 | 30,000,000 | 30,000,000 |
Federal National Mortgage Association, 3.00%, 6/15/2004 | 17,000,000 | 17,225,420 |
Total US Government Agency Obligations (Cost $192,772,292) | 192,772,292 | |
Repurchase Agreements 27.0% | ||
Repurchase Agreement with ABN Amro Bank, N.V., 1.10%, dated 9/30/2003, principal and interest in the amount of $200,006,111, due 10/1/2003 (c) | 200,000,000 | 200,000,000 |
Repurchase Agreement with BNP Paribas, 1.13%, dated 9/30/2003, principal and interest in the amount of $205,165,100, due 10/1/2003 (d) | 205,158,660 | 205,158,660 |
Repurchase Agreement with Goldman Sachs & Co., 1.11%, dated 9/30/2003, principal and interest in the amount of $15,000,463, due 10/1/2003 (e) | 15,000,000 | 15,000,000 |
Repurchase Agreement with Greenwich Capital Markets, Inc., 1.11%, dated 9/30/2003, principal and interest in the amount of $200,006,167, due 10/1/2003 (f) | 200,000,000 | 200,000,000 |
Repurchase Agreement with UBS Warburg LLC, 1.09%, dated 9/30/2003, principal and interest in the amount of $250,007,569, due 10/1/2003 (g) | 250,000,000 | 250,000,000 |
Total Repurchase Agreements (Cost $870,158,660) | 870,158,660 | |
Total Investment Portfolio - 100.0% (Cost $3,224,871,398) (a) | 3,224,871,398 |
* Floating rate notes are securities whose yields vary with a designated market index or market rate, such as the coupon-equivalent of the US Treasury bill rate. These securities are shown at their current rate as of September 30, 2003.
** Annualized yield at the time of purchase; not a coupon rate.
(a) Cost for federal income tax purpose was $3,224,871,398.
(b) The rate shown is the annualized seven-day yield at period-end.
(c) Collateralized by:
Principal Amount ($) | Type | Rate (%) | Maturity | Collateral | |
63,690,000 | FHLB | 3.375 | 7/21/2008 | 64,099,706 | |
70,225,000 | FNMA | 3.625 | 4/15/2004 | 72,269,572 | |
70,000,000 | FNMA | 5.5 | 1/1/2018 | 68,296,940 | |
Total Collateral Value | 204,666,218 |
(d) Collateralized by a $165,670,000 FNMA Note, 7.25%, 5/15/2030, with a value of $209,262,002.
(e) Collateralized by a $28,366,890 FNMA Note, 6.0%, 11/1/2032, with a value of $15,450,000.
(f) Collateralized by:
Principal Amount ($) | Type | Rate (%) | Maturity | Collateral |
1,855,279 | FHLMC Gold | 6.5 | 6/1/2033 | 1,942,342 |
2,002,490 | FHLMC Gold | 4.5 | 7/1/2033 | 1,927,167 |
6,000,000 | FHLMC Gold | 5.5 | 6/1/2033 | 5,705,103 |
2,000,200 | FHLMC Gold | 4.5 | 7/1/2033 | 1,923,323 |
5,626,073 | FHLMC Gold | 5.0 | 7/1/2033 | 5,602,473 |
4,659,224 | FHLMC Gold | 5.0 | 7/1/2033 | 4,633,767 |
4,749,027 | FHLMC Gold | 4.5 | 8/1/2033 | 4,569,421 |
2,806,371 | FHLMC Gold | 4.5 | 7/1/2033 | 2,700,032 |
4,786,404 | FHLMC Gold | 4.5 | 8/1/2033 | 4,613,052 |
2,000,000 | FHLMC Gold | 5.0 | 8/1/2033 | 1,995,038 |
4,783,819 | FHLMC Gold | 5.5 | 8/1/2033 | 4,881,279 |
2,500,000 | FHLMC Gold | 7.0 | 9/1/2033 | 2,652,122 |
1,640,336 | FHLMC Gold | 6.0 | 9/1/2033 | 1,697,917 |
1,288,307 | FHLMC Gold | 4.5 | 9/1/2033 | 1,243,184 |
1,075,341 | FHLMC Gold | 4.5 | 9/1/2033 | 1,037,677 |
2,050,238 | FHLMC Gold | 4.5 | 9/1/2033 | 1,978,429 |
5,196,495 | FHLMC Gold | 8.5 | 6/1/2006 | 1,921 |
1,277,078 | FHLMC Gold | 8.5 | 8/1/2030 | 96,110 |
2,135,034 | FHLMC Gold | 7.0 | 11/1/2030 | 234,671 |
1,030,853 | FHLMC Gold | 7.0 | 1/1/2033 | 880,874 |
3,382,200 | FHLMC Gold | 5.5 | 8/1/2033 | 3,433,501 |
5,515,935 | FHLMC Gold | 4.5 | 7/1/2033 | 5,299,975 |
1,317,461 | FHLMC Gold | 5.0 | 9/1/2033 | 1,315,719 |
6,095,000 | FHLMC Gold | 5.5 | 9/1/2033 | 6,225,619 |
1,712,604 | FHLMC Gold | 6.5 | 9/1/2033 | 1,798,536 |
1,229,769 | FHLMC Gold | 6.5 | 4/1/2029 | 262,741 |
2,882,066 | FHLMC Gold | 6.5 | 5/1/2029 | 714,521 |
1,105,635 | FHLMC Gold | 6.5 | 7/1/2029 | 247,015 |
1,514,588 | FHLMC Gold | 6.5 | 10/1/2029 | 393,046 |
775,538 | FHLMC Gold | 6.5 | 3/1/2030 | 128,752 |
1,145,331 | FHLMC Gold | 6.5 | 4/1/2030 | 109,249 |
1,143,175 | FHLMC Gold | 7.5 | 10/1/2030 | 82,900 |
1,705,583 | FHLMC Gold | 7.5 | 1/1/2031 | 170,425 |
2,645,454 | FHLMC Gold | 6.5 | 1/1/2031 | 477,958 |
1,163,895 | FHLMC Gold | 6.5 | 2/1/2031 | 295,346 |
1,443,333 | FHLMC Gold | 6.5 | 3/1/2031 | 247,633 |
1,621,528 | FHLMC Gold | 7.0 | 5/1/2031 | 203,602 |
2,434,407 | FHLMC Gold | 6.5 | 5/1/2031 | 1,261,241 |
1,911,464 | FHLMC Gold | 6.5 | 5/1/2031 | 580,237 |
978,437 | FHLMC Gold | 7.0 | 6/1/2031 | 183,100 |
1,070,160 | FHLMC Gold | 6.5 | 8/1/2031 | 344,196 |
1,871,667 | FHLMC Gold | 7.0 | 3/1/2031 | 289,415 |
3,287,882 | FHLMC Gold | 6.5 | 8/1/2031 | 952,811 |
1,226,572 | FHLMC Gold | 6.5 | 8/1/2031 | 357,843 |
1,559,183 | FHLMC Gold | 6.5 | 9/1/2031 | 633,688 |
1,350,381 | FHLMC Gold | 6.5 | 9/1/2031 | 434,167 |
3,284,543 | FHLMC Gold | 6.5 | 10/1/2031 | 810,568 |
1,655,762 | FHLMC Gold | 7.0 | 10/1/2031 | 331,298 |
958,006 | FHLMC Gold | 6.5 | 11/1/2031 | 119,857 |
2,092,984 | FHLMC Gold | 6.5 | 12/1/2031 | 918,458 |
847,046 | FHLMC Gold | 7.0 | 2/1/2032 | 585,884 |
2,934,784 | FHLMC Gold | 7.0 | 2/1/2032 | 1,030,351 |
1,075,000 | FHLMC Gold | 6.5 | 4/1/2032 | 698,869 |
Principal Amount ($) | Type | Rate (%) | Maturity | Collateral |
918,739 | FHLMC Gold | 7.0 | 4/1/2032 | 339,279 |
826,487 | FHLMC Gold | 6.5 | 3/1/2032 | 463,611 |
1,858,339 | FHLMC Gold | 6.5 | 8/1/2030 | 346,025 |
1,824,217 | FHLMC Gold | 7.0 | 6/1/2032 | 650,592 |
3,400,667 | FHLMC Gold | 7.0 | 6/1/2032 | 1,096,481 |
1,320,431 | FHLMC Gold | 7.0 | 6/1/2032 | 322,465 |
925,862 | FHLMC Gold | 8.0 | 6/1/2032 | 693,390 |
954,111 | FHLMC Gold | 6.5 | 7/1/2032 | 515,661 |
2,304,488 | FHLMC Gold | 6.5 | 7/1/2032 | 1,001,676 |
4,791,142 | FHLMC Gold | 7.0 | 8/1/2032 | 2,582,844 |
979,926 | FHLMC Gold | 6.5 | 8/1/2032 | 525,078 |
1,579,278 | FHLMC Gold | 8.0 | 9/1/2032 | 1,525,258 |
843,045 | FHLMC Gold | 6.5 | 9/1/2032 | 482,509 |
3,322,323 | FHLMC Gold | 6.0 | 11/1/2032 | 1,908,712 |
1,052,857 | FHLMC Gold | 6.5 | 11/1/2032 | 576,099 |
860,493 | FHLMC Gold | 6.5 | 12/1/2032 | 594,215 |
946,406 | FHLMC Gold | 6.5 | 12/1/2032 | 854,015 |
4,487,978 | FHLMC Gold | 6.0 | 12/1/2032 | 3,105,416 |
1,413,204 | FHLMC Gold | 6.0 | 1/1/2033 | 1,035,093 |
2,338,848 | FHLMC Gold | 6.0 | 5/1/2033 | 2,411,808 |
1,000,000 | FHLMC Gold | 7.0 | 8/1/2018 | 145,675 |
1,108,688 | FHLMC Gold | 7.0 | 9/1/2018 | 129,635 |
1,879,455 | FHLMC Gold | 7.0 | 6/1/2019 | 408,291 |
1,004,874 | FHLMC Gold | 6.5 | 12/1/2019 | 201,926 |
784,722 | FHLMC Gold | 6.5 | 1/1/2020 | 95,995 |
1,000,000 | FHLMC Gold | 6.5 | 7/1/2023 | 269,350 |
4,010,000 | FHLMC Gold | 6.5 | 8/1/2023 | 1,027,663 |
3,500,000 | FHLMC Gold | 6.5 | 9/1/2023 | 967,368 |
4,400,000 | FHLMC Gold | 6.0 | 12/1/2022 | 2,898,021 |
2,507,224 | FHLMC Gold | 5.5 | 1/1/2023 | 2,034,702 |
1,672,353 | FHLMC Gold | 5.5 | 7/1/2023 | 1,673,785 |
1,013,762 | FHLMC Gold | 4.5 | 9/1/2023 | 1,000,426 |
1,777,584 | FHLMC Gold | 5.0 | 9/1/2023 | 1,802,395 |
2,514,254 | FHLMC Gold | 7.0 | 2/1/2018 | 202,708 |
1,522,717 | FHLMC Gold | 6.5 | 2/1/2020 | 185,339 |
2,256,343 | FHLMC Gold | 7.0 | 5/1/2021 | 982,460 |
1,001,843 | FHLMC Gold | 6.0 | 12/1/2022 | 691,239 |
993,296 | FHLMC Gold | 5.5 | 11/1/2022 | 682,792 |
1,000,000 | FHLMC Gold | 5.5 | 3/1/2023 | 938,847 |
1,273,332 | FHLMC Gold | 5.5 | 5/1/2023 | 1,301,825 |
1,000,083 | FHLMC Gold | 5.5 | 5/1/2023 | 980,872 |
1,204,316 | FHLMC Gold | 5.5 | 9/1/2023 | 1,240,470 |
1,232,103 | FHLMC Gold | 5.5 | 5/1/2017 | 719,994 |
1,322,510 | FHLMC Gold | 5.5 | 9/1/2017 | 573,642 |
1,599,139 | FHLMC Gold | 5.5 | 12/1/2017 | 1,091,767 |
2,393,000 | FHLMC Gold | 4.5 | 8/1/2018 | 2,408,087 |
894,507 | FHLMC Gold | 5.5 | 7/1/2018 | 856,774 |
1,121,447 | FHLMC Gold | 5.0 | 9/1/2018 | 1,151,746 |
1,264,477 | FHLMC Gold | 5.5 | 9/1/2018 | 1,311,807 |
990,000 | FHLMC Gold | 5.5 | 1/1/2014 | 332,902 |
952,152 | FHLMC Gold | 5.5 | 1/1/2018 | 667,800 |
1,262,683 | FHLMC Gold | 5.0 | 4/1/2018 | 1,026,915 |
880,035 | FHLMC Gold | 5.5 | 7/1/2018 | 804,244 |
Principal Amount ($) | Type | Rate (%) | Maturity | Collateral | |
3,621,192 | FHLMC Gold | 5.0 | 9/1/2018 | 3,719,029 | |
4,745,942 | FHLMC Gold | 4.5 | 10/1/2018 | 4,795,134 | |
2,377,779 | FHLMC Gold | 4.5 | 10/1/2018 | 2,402,425 | |
2,797,865 | FHLMC Gold | 5.0 | 10/1/2018 | 2,873,457 | |
3,795,000 | FHLMC Gold | 5.0 | 10/1/2018 | 3,897,533 | |
4,276,405 | FHLMC Gold | 7.0 | 3/1/2031 | 539,243 | |
5,626,329 | FHLMC Gold | 7.0 | 9/1/2031 | 1,095,919 | |
4,264,564 | FHLMC Gold | 7.5 | 6/1/2032 | 4,609,447 | |
5,124,309 | FHLMC Gold | 5.0 | 8/1/2018 | 5,135,087 | |
1,042,062 | FHLMC Gold | 6.5 | 8/1/2017 | 1,087,319 | |
1,471,609 | FHLMC Gold | 6.0 | 9/1/2017 | 1,516,886 | |
1,500,000 | FHLMC Gold | 7.0 | 4/1/2018 | 204,254 | |
1,307,939 | FHLMC Gold | 6.0 | 6/1/2014 | 264,938 | |
2,280,450 | FHLMC Gold | 3.5 | 8/1/2010 | 2,239,583 | |
34,489,515 | FNMA | Adjustable Rate Mortgage | 6/1/2040 | 9,494,253 | |
91,697,593 | FNMA | Adjustable Rate Mortgage | 1/1/2031 | 28,663,849 | |
Total Collateral Value | 205,630,468 |
(g) Collateralized by:
Principal Amount ($) | Type | Rate (%) | Maturity | Collateral | |
24,732,000 | Resolution Funding Corp. | Discount Note | 4/15/2004 | 24,570,253 | |
16,949,000 | Resolution Funding Corp. | Discount Note | 10/15/2005 | 16,346,802 | |
21,397,000 | Resolution Funding Corp. | Discount Note | 10/15/2006 | 19,961,476 | |
15,850,000 | Resolution Funding Corp. | Discount Note | 1/15/2007 | 14,626,380 | |
20,055,000 | Resolution Funding Corp. | Discount Note | 1/15/2008 | 17,712,175 | |
41,895,000 | Resolution Funding Corp. | Discount Note | 1/15/2009 | 35,147,809 | |
31,399,000 | Resolution Funding Corp. | Discount Note | 7/15/2010 | 24,202,663 | |
18,756,000 | Resolution Funding Corp. | Discount Note | 10/15/2010 | 14,315,517 | |
17,133,000 | Resolution Funding Corp. | Discount Note | 7/15/2011 | 12,404,635 | |
16,059,000 | Resolution Funding Corp. | Discount Note | 10/15/2014 | 9,372,835 | |
14,823,000 | Resolution Funding Corp. | Discount Note | 4/15/2015 | 8,386,112 | |
5,601,000 | Resolution Funding Corp. | Discount Note | 7/15/2015 | 3,110,796 | |
32,556,000 | Resolution Funding Corp. | Discount Note | 4/15/2017 | 16,005,506 | |
30,410,000 | Resolution Funding Corp. | Discount Note | 10/15/2017 | 14,442,014 | |
32,941,000 | Resolution Funding Corp. | Discount Note | 7/15/2018 | 14,815,874 | |
15,278,000 | Resolution Funding Corp. | Discount Note | 10/15/2021 | 5,532,622 | |
17,281,000 | Resolution Funding Corp. | Discount Note | 10/15/2029 | 4,046,970 | |
Total Collateral Value | 255,000,439 |
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
The accompanying notes are an integral part of the financial statements.
Schedule of Investments as of September 30, 2003 (Unaudited) |
Treasury Series | Principal Amount ($) | Value ($) |
US Treasury Obligations 100.0% | ||
US Treasury Bills, 0.691%*, 1/2/2004 | 45,000,000 | 44,888,594 |
US Treasury Bills, 0.855%*, 10/23/2003 | 72,030,000 | 71,992,519 |
US Treasury Bills, 0.915%*, 12/26/2003 | 50,000,000 | 49,890,708 |
US Treasury Bills, 0.92%*, 1/15/2004 | 50,000,000 | 49,863,083 |
US Treasury Bills, 0.98%*, 11/20/2003 | 65,000,000 | 64,911,806 |
US Treasury Bills, 0.99%*, 3/18/2004 | 12,000,000 | 11,944,230 |
US Treasury Bills, 0.995%*, 3/11/2004 | 10,000,000 | 9,955,225 |
US Treasury Bills, 1.07%*, 10/2/2003 | 125,691,000 | 125,687,698 |
US Treasury Bills, 1.145%*, 10/30/2003 | 35,000,000 | 34,973,356 |
US Treasury Note, 2.125%, 8/31/2004 | 6,000,000 | 6,047,150 |
Total Investment Portfolio - 100.0% (Cost $470,154,369) (a) | 470,154,369 |
* Annualized yield at time of purchase; not a coupon rate.
(a) Cost for federal income tax purposes was $470,154,369.
The accompanying notes are an integral part of the financial statements.
Schedule of Investments as of September 30, 2003 (Unaudited) |
Tax-Free Series | Principal Amount ($) | Value ($) |
Municipal Investments 100.0% | ||
Alabama 3.2% | ||
Alabama, Sewer Revenue, Series A, 144A, 1.15%*, 1/1/2043 (b) (c) | 2,500,000 | 2,500,000 |
Evergreen, Industrial Development Authority, Tenax Manufacturing Project, 1.05%*, 12/1/2012 (b) | 3,000,000 | 3,000,000 |
Housing Finance Authority, Multi-family Housing, Refunding Heatherbrooke Project C, 1.08%*, 6/15/2026 (b) | 9,900,000 | 9,900,000 |
Housing Finance Authority, Multi-family Housing, Refunding Rime Village Hoover Project A, 1.08%*, 6/15/2026 (b) | 7,500,000 | 7,500,000 |
Jefferson County, Sewer Revenue, Series A, 1.08%*, 2/1/2042 (b) (c) | 7,000,000 | 7,000,000 |
29,900,000 | ||
Alaska 0.5% | ||
Anchorage, Core City General Obligation, Series II-R, 144A, 1.15%*, 6/1/2019 (b) (c) | 3,000,000 | 3,000,000 |
Valdez, Transportation/Tolls Revenue, Marine Term Revenue, Series 1188, 144A, 1.16%*, 10/1/2028 | 2,000,000 | 2,000,000 |
5,000,000 | ||
Arizona 3.2% | ||
Apache County, Industrial Development Authority, Series A, 1.1%*, 12/15/2018 (b) | 2,100,000 | 2,100,000 |
Salt River, Agricultural Improvement and Power District, 0.85%, 10/8/2003 | 18,000,000 | 18,000,000 |
Salt River, Agricultural Improvement and Power District, 0.87%, 10/15/2003 | 10,000,000 | 10,000,000 |
30,100,000 | ||
California 4.2% | ||
California, State General Obligation, 2.0%, 6/30/2004 | 6,000,000 | 6,053,403 |
Los Angeles, County, Sanitation Distribution Financing Authority, Series A, Prerefunded, 5.25%, 10/1/2019 (b) (c) | 15,000,000 | 15,300,000 |
Los Angeles, Port Authority Revenue, Regional Airport Improvement Corp., 1.16%*, 12/1/2025 (b) | 4,025,000 | 4,025,000 |
Los Angeles, School District General Obligation, Unified School District, 144A, 1.1%*, 1/1/2028 (b) (c) | 11,975,000 | 11,975,000 |
Santa Clara County, School District General Obligation, East Side High School District, Series 13, 144A, 1.16%, 2/1/2020 (b) (c) | 2,500,000 | 2,500,000 |
39,853,403 | ||
Colorado 6.8% | ||
Colorado, Regional Transportation, 0.95%, 11/6/2003 | 3,000,000 | 3,000,000 |
Colorado, State General Obligation NC S03, 1.75%, 6/25/2004 | 18,070,000 | 18,184,035 |
Colorado, Transportation/Tolls Revenue, Transportation Department, 144A, 1.15%*, 12/15/2016 (b) (c) | 3,345,000 | 3,345,000 |
Denver, County General Obligation, 1.13%*, 11/1/2014 (b) (c) | 7,275,000 | 7,275,000 |
Health Care Facilities Revenue Bethesda Living Centers Project, 1.1%*, 8/15/2030 (b) | 9,625,000 | 9,625,000 |
Lower Colorado River Authority, 1.1%, 10/16/2003 | 10,7000,000 | 10,700,000 |
Traer Creek, Metropolitan District Revenue, 1.13%*, 10/1/2021 (b) | 11,500,000 | 11,500,000 |
63,629,035 | ||
Delaware 0.0% | ||
Blackrock Provident Institutional MuniFund, Inc., 0.91%*, 1/1/2049 | 403,761 | 403,761 |
District of Columbia 1.3% | ||
District of Columbia, Senior Care Revenue, 1.25%*, 8/15/2038 (b) (c) | 3,800,000 | 3,800,000 |
General Obligation, Series B, 1.07%*, 6/1/2030 (b) (c) | 1,600,000 | 1,600,000 |
General Obligation, Series D, 1.1%*, 6/1/2029 (b) (c) | 6,350,000 | 6,350,000 |
11,750,000 | ||
Florida 9.7% | ||
Alachua County, Hospital & Healthcare Revenue, Health Facilities Authority, Series A, 1.2%*, 12/1/2012 (b) | 7,400,000 | 7,400,000 |
Capital Treasury Agency Revenue, Seminole Tribe Resort, Series B, 1.1%*, 10/1/2033 (b) | 1,000,000 | 1,000,000 |
Charlotte County, Electric Revenue, Utility Revenue, Series B, 1.1%*, 10/1/2021 (b) (c) | 8,000,000 | 8,000,000 |
Florida, State General Obligation, Board of Education, Series A, 1.13%*, 7/1/2010 (b) (c) | 3,800,000 | 3,800,000 |
Florida, Transportation/Tolls Revenue, Turnpike Authority, Series R-4041, 144A, 1.15%*, 7/1/2020 (b) (c) | 11,530,000 | 11,530,000 |
Gulf Coast University, Certificates of Participation, 1.12%*, 8/1/2032 (b) | 1,150,000 | 1,150,000 |
Highlands County, Hospital and Health Care Revenue, Health Facilities Authority, Adventist Hospital, Series A, 1.1%*, 11/15/2032 (b) | 3,300,000 | 3,300,000 |
Highlands County, Hospital and Health Care Revenue, 1.08%*, 11/15/2009 (b) | 20,000,000 | 20,000,000 |
Housing Finance Corporate Multifamily Revenue, Victoria Park, 1.1%*, 10/15/2032 (b) | 900,000 | 900,000 |
Jacksonville, Electric Authority Revenue, Electric Systems, 0.95%, 1/13/2004 | 14,000,000 | 14,000,000 |
Jacksonville, Electric Authority Revenue, Electric Systems, Series C-1, 0.9%, 12/10/2003 | 6,347,000 | 6,347,000 |
Jacksonville, Electric Authority Revenue, Series B, 1.25%*, 10/1/2030 | 1,200,000 | 1,200,000 |
Miami, School District General Obligation, School Board, Series 4022, 144A, 1.15%*, 8/2/2021 (b) (c) | 4,245,000 | 4,245,000 |
Pasco County, School Board, Certificates Participation, 1.05%*, 8/1/2026 (b) (c) | 5,600,000 | 5,600,000 |
Pinellas County, Health Facilities Authority Pooled Hospital Loan Program, 1.2%*, 12/1/2015 (b) (c) | 1,000,000 | 1,000,000 |
Tampa, Health Care Facilities Authority, Lifelink Foundation, Inc. Project J, 1.1%*, 8/1/2022 (b) | 1,300,000 | 1,300,000 |
90,772,000 | ||
Georgia 10.2% | ||
Athens-Clarke County, Transportation/Tolls Revenue, University Government Development Authority, 1.22%*, 8/1/2033 | 1,400,000 | 1,400,000 |
Atlanta, Airport Revenue, 144A, 1.15%*, 1/1/2020 (b) (c) | 2,500,000 | 2,500,000 |
Atlanta, Airport Revenue, Series B-1, 1.1%*, 1/1/2030 (b) (c) | 15,000,000 | 15,000,000 |
Atlanta, Airport Revenue, Series C-1, 1.1%*, 1/1/2030 (b) (c) | 5,000,000 | 5,000,000 |
Burke County Pollution Control Revenue, Development Authority Pollution Control Revenue, Series C, 1.2%*, 1/1/2018 (b) (c) | 1,420,000 | 1,420,000 |
Cobb County, Development Authority Revenue, MT Paran Christian School Project, 1.05%*, 7/1/2022 (b) | 2,900,000 | 2,900,000 |
Cobb County, Housing Authority, Post Mill Project, 1.08%*, 6/1/2025 (b) | 11,380,000 | 11,380,000 |
Columbus County, Housing Authority Revenue, Columbus State University Foundation, Inc., 1.1%*, 11/1/2017 (b) | 3,000,000 | 3,000,000 |
De Kalb County, Housing Authority, Multi-family Housing, Camden Brook Project, 1.1%*, 6/15/2025 (b) | 4,340,000 | 4,340,000 |
De Kalb County, Housing Authority, Multi-family Housing, Post Ashford Project, 1.08%*, 6/1/2025 (b) | 8,895,000 | 8,895,000 |
Fayette County, Development Authority, Educational Facilities Revenue, Catholic Schools Properties, Inc. Project, 1.05%*, 4/1/2024 (b) | 3,500,000 | 3,500,000 |
Fulco, Hospital Authority Revenue, Piedmont Hospital Project, 1.08%*, 3/1/2024 (b) | 2,800,000 | 2,800,000 |
Fulton County, Development Authority Revenue, Donnellan School Project, 1.05%*, 7/1/2020 (b) | 1,950,000 | 1,950,000 |
Fulton County, Development Authority Revenue, Lovett School Project, 1.1%*, 7/1/2026 (b) | 2,000,000 | 2,000,000 |
Gainsville, County, Redevelopment Authority, Revenue Bonds, 1.05%*, 7/1/2024 (b) | 10,000,000 | 10,000,000 |
Macon-Bibb County, Hospital Authority Revenue, Medical Center of Central Georgia, 1.1%*, 8/1/2018 (b) | 2,600,000 | 2,600,000 |
Macon-Bibb County, Hospital Authority Revenue, Medical Center of Central Georgia, 1.1%*, 12/1/2018 (b) | 1,030,000 | 1,030,000 |
Rockdale County, Hospital Authority Revenue, 1.1%*, 10/1/2027 (b) | 7,835,000 | 7,835,000 |
Roswell Housing Authority, Multi-family Housing, Post Canyon Project, 1.08%*, 6/1/2025 (b) | 8,500,000 | 8,500,000 |
96,050,000 | ||
Hawaii 0.9% | ||
Hawaii, State Department of Budget & Finance, Kahala Nui Project, Series D, 1.1%*, 11/15/2033 (b) | 8,200,000 | 8,200,000 |
Illinois 9.0% | ||
Chicago, Core City General Obligation, 144A, 1.16%*, 1/1/2014 (b) (c) | 2,165,000 | 2,165,000 |
Chicago, General Obligation, Series B, 1.11%*, 1/1/2037 (b) (c) | 1,500,000 | 1,500,000 |
Chicago, General Obligation, Series B, 144A, 1.15%*, 1/1/2042 (b) (c) | 2,690,000 | 2,690,000 |
Chicago, Sales Tax Revenue, 1.1%*, 1/1/2034 (b) (c) | 2,000,000 | 2,000,000 |
Cook County, General Obligation, Series 2003-11, 144A, 1.18%*, 11/15/2016 (b) (c) | 7,780,000 | 7,780,000 |
Development Finance Authority, Chicago Symphony Orchestra, 1.08%*, 12/1/2028 (b) | 11,300,000 | 11,300,000 |
Development Finance Authority, Chicago Symphony Project, 1.1%*, 12/1/2033 (b) | 7,000,000 | 7,000,000 |
Development Finance Authority, Fenwick High School Project, 1.1%*, 3/1/2032 (b) | 12,200,000 | 12,200,000 |
Development Finance Authority, Jewish Federation Project, 1.1%*, 9/1/2024 (b) (c) | 1,780,000 | 1,780,000 |
Illinois, EDA Field Museum, 1.05%, 2/24/2004 | 10,000,000 | 10,000,000 |
Illinois, State General Obligation, 2.0%, 1/15/2004 | 26,500,000 | 26,579,667 |
84,994,667 | ||
Indiana 2.0% | ||
Indiana, Advance Funding Program Notes, Series A, 2.0%, 1/27/2004 (b) (c) | 10,200,000 | 10,229,016 |
Indiana, Municipal Power Agency, Power Supplies System Revenue, Refunding, Series A, 1.1%*, 1/1/2018 (b) | 1,200,000 | 1,200,000 |
Indiana, Transportation/Tolls Revenue, 144A, 1.06%*, 6/1/2018 (b) (c) | 3,000,000 | 3,000,000 |
Indianapolis, Water & Sewer Revenue, 144A, 1.14%*, 7/1/2033 (b) (c) | 4,000,000 | 4,000,000 |
18,429,016 | ||
Iowa 0.8% | ||
Iowa Finance Authority, 1.15%*, 2/1/2023 (b) | 960,000 | 960,000 |
Iowa Finance Authority, Hospital Facilities Revenue, Iowa Health System, Series B, 1.13%*, 7/1/2015 (b) (c) | 2,400,000 | 2,400,000 |
Iowa Finance Authority, Hospital Facilities Revenue, Iowa Health System, Series B, 1.13%*, 7/1/2020 (b) (c) | 4,625,000 | 4,625,000 |
7,985,000 | ||
Louisiana 0.6% | ||
Louisiana, Port Authority, Offshore Term Authority Deepwater Port, 1.2%*, 9/1/2014 (b) | 5,700,000 | 5,700,000 |
Kentucky 1.2% | ||
Pendleton County, Multiple-County Lease Revenue, 1.0%, 1/9/2004 | 11,000,000 | 11,000,000 |
Maine 1.3% | ||
Maine Municipal Bond Bank, Revenue Bonds, 144A, 1.15%*, 11/1/2019 | 5,170,000 | 5,170,000 |
State General Obligation, 1.75%, 6/30/2004 | 6,750,000 | 6,797,407 |
11,967,407 | ||
Maryland 0.6% | ||
Maryland, Higher Education Revenue, Economic Development Corporate Student Housing Revenue, 1.05%*, 11/1/2031 (b) | 6,000,000 | 6,000,000 |
Michigan 2.4% | ||
Michigan, Bond Authority, Series B-2, 2.0%, 8/23/2004 (b) | 10,000,000 | 10,085,782 |
Michigan, Community Schools, Series R-4517, 1.15%*, 5/1/2023 (b) | 5,235,000 | 5,235,000 |
Michigan, Industrial Development Revenue, 144A, 1.18%*, 9/1/2011 (b) | 4,975,000 | 4,975,000 |
Michigan, Water & Sewer Revenue, ABN Amro Munitops Certificate Trust, 144A, 1.16%*, 1/1/2011 (b) (c) | 2,650,000 | 2,650,000 |
22,945,782 | ||
Minnesota 0.5% | ||
Rochester Mayo Foundation, 0.9%, 10/8/2003 | 5,000,000 | 5,000,000 |
Missouri 0.2% | ||
State Health and Education Authority, Revenue Bonds, 1.08%*, 12/1/2015 (b) | 1,800,000 | 1,800,000 |
New Hampshire 0.7% | ||
Health & Education Facilities, Series A, 1.05%*, 8/1/2031 (b) (c) | 3,145,000 | 3,145,000 |
Hospital & Healthcare Revenue, Health & Education Authority, Series PT-1830, 1.2%*, 10/1/2021 (b) | 3,390,000 | 3,390,000 |
6,535,000 | ||
New Jersey 0.1% | ||
Salem County, Industrial Pollution Control Financing Authority, E.I. Du Point De Nemours and Co., 1.0%*, 3/1/2012 | 1,300,000 | 1,300,000 |
New Mexico 0.6% | ||
Albuquerque, Airport Facilities Revenue, Series A, 1.15%*, 7/1/2020 (b) (c) | 6,100,000 | 6,100,000 |
New York 3.9% | ||
Long Island Power Authority, Electric System Revenue, Series 1A, 1.03%*, 5/1/2033 (b) | 500,000 | 500,000 |
New York City, Core City General Obligation, 1.08%*, 11/1/2022 | 5,700,000 | 5,700,000 |
New York City, General Obligation, 1.1%*, 8/1/2031 (b) | 2,000,000 | 2,000,000 |
New York, Core City General Obligation, Transitional Finance Authority, Series 3B, 1.23%*, 11/1/2022 | 4,200,000 | 4,200,000 |
New York, Electric Revenue, Municipal Securities Trust Certificates, Series 9058, 144A, 1.17%*, 9/23/2010 (b) (c) | 9,990,000 | 9,990,000 |
New York, Hospital & Healthcare Revenue, State Dorm Authority Revenue, Series D-2B, 1.05%*, 2/15/2031 (b) | 1,800,000 | 1,800,000 |
New York, State General Obligation, Series D, 1.07%*, 2/1/2020 (b) (c) | 1,200,000 | 1,200,000 |
New York Transitional Finance Authority Revenue, Bond Anticipation Note, Series 2, 2.0%, 2/19/2004 | 10,000,000 | 10,034,359 |
New York Transportation Finance Authority Revenue, Bond Anticipation Note, Series 2, 1.16%*, 2/1/2029 | 300,000 | 300,000 |
New York, Transportation/Tolls Revenue, Metropolitan Transit Authority, Series B, 1.07%*, 11/1/2022 (b) (c) | 1,300,000 | 1,300,000 |
37,024,359 | ||
North Carolina 1.8% | ||
Medical Care Community Hospital Revenue, Grace Hospital Project, 1.05%*, 10/1/2025 (b) | 16,550,000 | 16,550,000 |
Ohio 3.3% | ||
Akron, Hospital and Health Care Revenue, Heath Facilities Authority, Sumner Project, 1.1%*, 12/1/2032 (b) | 5,000,000 | 5,000,000 |
Franklin County, Senior Care Revenue, Hospital Revenue Series II-R-55, 144A, 1.15%*, 6/1/2017 | 12,000,000 | 12,000,000 |
Huron County, Hospital Facilities Revenue, Series A, 1.06%*, 12/1/2027 (b) | 14,000,000 | 14,000,000 |
31,000,000 | ||
Oklahoma 1.0% | ||
Tulsa County, Industrial Development Revenue, Industrial Authority Revenue, Series A, 1.2%*, 7/1/2032 (b) | 1,800,000 | 1,800,000 |
Payne County, Economic Development Authority Student Housing Revenue, 1.11%*, 6/1/2032 (b) (c) | 7,985,000 | 7,985,000 |
9,785,000 | ||
Oregon 0.5% | ||
Portland, Industrial Development Revenue, 1.1%*, 4/1/2035 (b) (c) | 4,500,000 | 4,500,000 |
Pennsylvania 2.0% | ||
Allegheny County, Hospital & Health Revenue, Hospital Development Authority, 1.1%*, 7/15/2028 (b) | 4,800,000 | 4,800,000 |
Allegheny County, Hospital & Health Care Revenue, Hospital Development Authority, 1.15%*, 11/1/2017 | 75,000 | 75,000 |
Delaware Valley, Regional Finance Authority Revenue, 1.1%*, 8/1/2016 (b) | 3,500,000 | 3,500,000 |
Lehigh County, Hospital & Healthcare Revenue, Series A, 1.14%*, 7/1/2028 (b) (c) | 4,500,000 | 4,500,000 |
Pennsylvania, School District (REV) Lease, Public School Building Authority, 1.15%*, 144A, 6/1/2028 (b) (c) | 1,500,000 | 1,500,000 |
Pennsylvania, Economic Development Finance Authority, Carnegie Mellon University, Series C, 1.22%*, 11/1/2029 | 1,500,000 | 1,500,000 |
Philadelphia, PA, Multi Family Housing Revenue, 144A, 1.1%*, 6/1/2025 (b) | 2,600,000 | 2,600,000 |
18,475,000 | ||
South Carolina 1.9% | ||
South Carolina, Project Revenue, Economic Development Authority, 1.05%*, 8/1/2029 (b) | 7,100,000 | 7,100,000 |
South Carolina, Project Revenue, Jobs Economic Development Authority, Sisters of Charity Hospitals, 1.14%*, 11/1/2032 (b) | 10,000,000 | 10,000,000 |
South Carolina, Senior Care Revenue, Economic Development Authority, 1.05%*, 7/1/2020 (b) | 380,000 | 380,000 |
17,480,000 | ||
Tennessee 1.1% | ||
Memphis, General Obligation, Series A, 1.12%*, 8/1/2004 | 585,000 | 585,000 |
Memphis, General Obligation, Series A, 1.12%*, 8/1/2007 | 2,800,000 | 2,800,000 |
Montgomery County, Public Building Authority, 1.22%*, 4/1/2032 (b) | 1,900,000 | 1,900,000 |
Shelby County, General Obligation, 2.0%, 6/30/2004 | 4,900,000 | 4,937,980 |
10,222,980 | ||
Texas 11.9% | ||
Austin, Electric Revenue, Electric Utilities Systems Revenue, Series 20030032, 144A, 1.15%*, 11/15/2028 (b) (c) | 5,850,000 | 5,850,000 |
Brownsville, Utility System Revenue, Refunding, Series B, 1.05%*, 9/1/2025 (b) (c) | 200,000 | 200,000 |
Corpus Christi, Electric Revenue, Utility System, 1.16%*, 7/15/2020 (b) (c) | 3,960,000 | 3,960,000 |
Cypress-Fairbanks, School District, General Obligation, Independent School District, Series R 4030, 1.15%*, 2/15/2025 (b) (c) | 1,430,000 | 1,430,000 |
Georgetown, Higher Education Finance, Southwestern University, 1.1%*, 10/1/2014 | 2,000,000 | 2,000,000 |
Harris County, Industrial Development Revenue, Baytank Houston, Inc. Project, 1.08%*, 2/1/2020 (b) | 3,000,000 | 3,000,000 |
Houston, Airport Revenue, Special Facilities, 1.15%*, 7/1/2032 | 10,000,000 | 10,000,000 |
Houston, Water and Sewer Revenue, Series 2003-14, 144A, 1.18%*, 6/1/2026 (b) (c) | 1,200,000 | 1,200,000 |
Houston, Water and Sewer Revenue, Series 120, 1.13%*, 12/1/2023 | 6,900,000 | 6,900,000 |
Houston, Water and Sewer Series-A, 0.9%, 10/29/2003 | 6,000,000 | 6,000,000 |
Houston, General Obligation, 0.95%, 1/20/2004 | 8,000,000 | 8,000,000 |
Humble, School District General Obligation, Independent School District, 1.06%*, 6/15/2023 (b) | 10,000,000 | 10,000,000 |
North Texas Transportation/Toll Revenue, 0.9%, 11/25/2003 | 5,000,000 | 5,000,000 |
Texas, Electric Revenue, Lower Colorado River Authority, Series PT-1818, 1.13%*, 5/15/2017 (b) (c) | 4,290,000 | 4,290,000 |
Texas, Higher Education Revenue, University of Texas, Series b 14, 144A, 1.13%*, 8/15/2022 | 2,000,000 | 2,000,000 |
Texas, Higher Education Revenue, 1.13%*, 2/15/2016 | 3,520,000 | 3,520,000 |
Texas, State (REV) Lease, Trust Certificates, Series 9056, 144A, 1.17%*, 7/21/2010 (b) (c) | 5,000,000 | 5,000,000 |
Texas, State General Obligations, 2.0%, 8/31/2004 | 27,000,000 | 27,215,560 |
Texas, State General Obligations, Series 4020, 144A, 1.15%*, 10/1/2022 | 3,600,000 | 3,600,000 |
Texas, State General Obligations, Series A, 144A, 1.15%*, 10/1/2015 | 2,400,000 | 2,400,000 |
111,565,560 | ||
Utah 2.0% | ||
Alpine School District, General Obligations, School District, Series 436, 1.13%*, 3/15/2009 (b) | 5,000,000 | 5,000,000 |
Electric Revenue, Intermountain Power Agency, Series PT-1815, 1.13%*, 7/1/2021 (b) (c) | 3,930,000 | 3,930,000 |
Intermountain Power Agency, 0.9%, 11/3/2003 | 4,400,000 | 4,400,000 |
Salt Lake County, State General Obligations, 1.5%, 12/30/2003 | 5,000,000 | 5,008,060 |
18,338,060 | ||
Virginia 2.6% | ||
Chesapeake Bay, Transportation/Tolls Revenue, Bridge and Tunnel Commission, Series A 39, 144A, 1.15%*, 7/1/2025 (b) (c) | 3,190,000 | 3,190,000 |
Fairfax County, Economic Development Authority Revenue, Flint Hill School Project, 1.05%*, 10/1/2025 (b) | 19,580,000 | 19,580,000 |
Spotsylvania County, Industrial Development Revenue, 1.1%*, 4/1/2023 (b) | 1,500,000 | 1,500,000 |
24,270,000 | ||
Washington 5.9% | ||
Electric Revenue, Energy Northwest Electric Revenue, Series R 4524, 144A, 1.15%*, 7/1/2018 (b) (c) | 5,500,000 | 5,500,000 |
Electric Revenue, Northwest Energy, 1.15%*, 7/1/2017 (b) (c) | 10,000,000 | 10,000,000 |
General Obligations, Series 9055, 144A, 1.17%*, 12/23/2010 (b) (c) | 9,795,000 | 9,795,000 |
Port Tacoma, Core City, General Obligation, Series R 4036, 144A, 1.15%*, 12/1/2025 (b) (c) | 7,310,000 | 7,310,000 |
Seattle, Transportation/Tolls Revenue, Series 849D, 144A, 1.14%*, 7/1/2021 (b) (c) | 9,000,000 | 9,000,000 |
Snohomish County, General Obligation, Series B33, 144A, 1.15%*, 12/1/2027 (b) (c) | 3,500,000 | 3,500,000 |
Washington, Public Housing Revenue, Housing Finance Community Nonprofit Housing Revenue, 144A, 1.15%*, 7/1/2033 (b) | 10,000,000 | 10,000,000 |
55,105,000 | ||
West Virginia 0.4% | ||
Monongalia County, Building Community Hospital Revenue, Monongalia General Hospital, Series A, 1.17%*, 7/1/2017 (b) | 3,770,000 | 3,770,000 |
Wisconsin 1.7% | ||
Milwaukee, Water & Sewer Revenue, 144A, 1.15%*, 6/1/2022 (b) (c) | 3,630,000 | 3,630,000 |
Wisconsin, Transportation Authority Revenue, 0.9%, 11/10/2003 | 12,000,000 | 12,000,000 |
15,630,000 | ||
Total Investment Portfolio - 100.0% (Cost $939,131,030) (a) | 939,131,030 |
* Variable rate demand notes are securities whose interest rates are reset periodically at market levels. These securities are often payable on demand and are shown at their current rate as of September 30, 2003.
(a) The cost for federal income tax purposes was $939,131,030.
(b) Security includes a letter of credit or line of credit from a major bank.
(c) Bond is insured by one of these companies:
AMBAC | AMBAC Assurance Corp. |
FGIC | Financial Guaranty Insurance Company |
FHA | Federal Housing Administration |
FHLMC | Federal Home Loan Mortgage Corp. |
FNMA | Federal National Mortgage Association |
FSA | Financial Security Assurance |
MBIA | Municipal Bond Investors Assurance |
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
The accompanying notes are an integral part of the financial statements.
Statements of Assets and Liabilities as of September 30, 2003 (Unaudited) | |||
Assets | Prime Series | Treasury Series | Tax-Free Series |
Investments: Investments, at amortized cost | $ 2,354,712,738 | $ 470,154,369 | $ 939,131,030 |
Repurchase agreements, at value | 870,158,660 | - | - |
Total Investments, at amortized cost | 3,224,871,398 | 470,154,369 | 939,131,030 |
Cash | - | 499 | 10,339 |
Receivable for securities sold | - | - | 14,815,608 |
Interest receivable | 3,102,629 | 10,859 | 2,132,259 |
Receivable for Fund shares sold | - | 2,350,830 | 76,151 |
Other assets | 55,600 | 27,460 | 76,960 |
Total assets | 3,228,029,627 | 472,544,017 | 956,242,347 |
Liabilities | |||
Due to custodian bank | 14,772 | - | - |
Dividends payable | 2,093 | 164 | - |
Payable for Fund shares redeemed | 42,954 | 1,921,380 | 76,149 |
Accrued management fee | 751,754 | 73,792 | 209,955 |
Accrued distribution fees | 583,186 | 77,355 | 165,732 |
Accrued shareholder servicing fees | 162,578 | 22,214 | 41,042 |
Accrued custodian and accounting fees | 123,404 | 15,401 | 41,457 |
Accrued transfer agent fees | 1,671,948 | 236,503 | 429,137 |
Other accrued expenses and payables | 168,324 | 75,884 | 54,389 |
Total liabilities | 3,521,013 | 2,422,693 | 1,017,861 |
Net assets | $ 3,224,508,614 | $ 470,121,324 | $ 955,224,486 |
Composition of Net Assets | |||
Undistributed (accumulated distributions in excess of) net investment income | (25,229) | 36,114 | (143,763) |
Accumulated net realized gain (loss) | (9,568) | 16,101 | (52,339) |
Paid-in capital | 3,224,543,411 | 470,069,109 | 955,420,588 |
Net assets | $ 3,224,508,614 | $ 470,121,324 | $ 955,224,486 |
The accompanying notes are an integral part of the financial statements.
Statements of Assets and Liabilities as of September 30, 2003 (Unaudited) (continued) | |||
Net Asset Value | Prime Series | Treasury Series | Tax-Free Series |
Computation of Net Asset Value, Offering and Redemption Price Per Share | |||
Prime Shares, Treasury Shares, and Tax-Free Shares, respectively(a) Net assets | $ 2,787,741,122 | $ 374,207,305 | $ 735,133,573 |
Shares outstanding | 2,787,393,049 | 374,091,386 | 735,234,209 |
Net Asset Value per share | $ 1.00 | $ 1.00 | $ 1.00 |
Prime Institutional Shares, Treasury Institutional Shares and Tax-Free Institutional Shares, respectively(b) Net assets | $ 419,058,317 | $ 95,914,019 | $ 220,090,913 |
Shares outstanding | 419,047,665 | 95,904,556 | 220,105,630 |
Net Asset Value per share | $ 1.00 | $ 1.00 | $ 1.00 |
Scudder Cash Reserve Prime Class A Shares Net assets | $ 7,156,446 | $ - | $ - |
Shares outstanding | 7,162,687 | - | - |
Net Asset Value per share | $ 1.00 | $ - | $ - |
Scudder Cash Reserve Prime Class B Shares Net assets | $ 7,105,839 | $ - | $ - |
Shares outstanding | 7,102,508 | - | - |
Net Asset Value per share | $ 1.00 | $ - | $ - |
Scudder Cash Reserve Prime Class C Shares Net assets | $ 193,741 | $ - | $ - |
Shares outstanding | 193,835 | - | - |
Net Asset Value per share | $ 1.00 | $ - | $ - |
Quality Cash Reserve Prime Shares Net assets | $ 3,253,149 | $ - | $ - |
Shares outstanding | 3,245,283 | - | - |
Net Asset Value per share | $ 1.00 | $ - | $ - |
a Prior to July 31, 2003, the Prime Shares were known as the Deutsche Bank Alex. Brown Cash Reserve Prime Shares, the Treasury Shares were known as the Deutsche Bank Alex. Brown Cash Reserve Treasury Shares and the Tax-Free Shares were known as the Deutsche Bank Alex. Brown Cash Reserve Tax-Free Shares.
b Prior to July 31, 2003, the Prime Institutional Shares were known as the Deutsche Bank Alex. Brown Cash Reserve Prime Institutional Shares, the Treasury Institutional Shares were known as the Deutsche Bank Alex. Brown Cash Reserve Treasury Institutional Shares and the Tax-Free Institutional Shares were known as the Deutsche Bank Alex. Brown Cash Reserve Tax-Free Institutional Shares.
The accompanying notes are an integral part of the financial statements.
Statements of Operations for the six months ended September 30, 2003 (Unaudited) | |||
Investment Income | Prime Series | Treasury Series | Tax-Free Series |
Interest | $ 18,913,971 | $ 2,771,065 | $ 4,779,755 |
Dividends | 1,489,412 | - | - |
Total Income | 20,403,383 | 2,771,065 | 4,779,755 |
Expenses: | |||
Management fee | 4,395,175 | 614,092 | 1,235,522 |
Transfer agent fees | 1,204,691 | 134,104 | 367,346 |
Custodian and accounting fees | 159,151 | 67,792 | 93,124 |
Auditing | 21,407 | 12,940 | 27,243 |
Legal | - | 6,940 | 14,194 |
Directors' fees and expenses | 70,848 | - | - |
Reports to shareholders | 38,066 | 17,600 | 13,985 |
Registration fees | 147,260 | 24,122 | 33,044 |
Distribution fees: Prime Shares, Treasury Shares and Tax-Free Shares, respectively | 3,523,412 | 501,576 | 879,473 |
Scudder Cash Reserve Prime Class A Shares | 10,008 | - | - |
Scudder Cash Reserve Prime Class B Shares | 33,645 | - | - |
Scudder Cash Reserve Prime Class C Shares | 1,071 | - | - |
Quality Cash Reserve Prime Shares | 9,425 | - | - |
Shareholder servicing fees: Prime Shares, Treasury Shares and Tax-Free Shares, respectively | 986,553 | 140,441 | 246,252 |
Scudder Cash Reserve Prime Class B Shares | 11,215 | - | - |
Scudder Cash Reserve Prime Class C Shares | 357 | - | - |
Other | - | - | 3,638 |
Total expenses | 10,612,284 | 1,519,607 | 2,913,821 |
Less: fee waivers and/or expense reimbursements | (22,684) | (126,430) | (2,634) |
Net expenses | 10,589,600 | 1,393,177 | 2,911,187 |
Net investment income | 9,813,783 | 1,377,888 | 1,868,568 |
Net realized gain (loss) on investment transactions | 10,063 | 16,101 | 6,836 |
Net increase (decrease) in net assets from operations | $ 9,823,846 | $ 1,393,989 | $ 1,875,404 |
The accompanying notes are an integral part of the financial statements.
Prime Series
Statement of Changes in Net Assets | ||
Increase (Decrease) in Net Assets | Six Months Ended September 30, 2003 (Unaudited) | Year Ended March 31, |
Operations: Net investment income | $ 9,813,783 | $ 47,885,457 |
Net realized gain (loss) | 10,063 | 12,329 |
Net increase (decrease) in net assets resulting from operations | 9,823,846 | 47,897,786 |
Distributions to shareholders from: Net investment income: Prime Shares | (7,321,409) | (38,057,799) |
Prime Institutional Shares | (2,287,912) | (9,631,429) |
Scudder Cash Reserve Prime Class A Shares | (23,133) | (172,134) |
Scudder Cash Reserve Prime Class B Shares | (3,924) | (54,913) |
Scudder Cash Reserve Prime Class C Shares | (134) | (2,431) |
Quality Cash Reserve Prime Shares | (3,710) | (208,566) |
Total distributions | (9,640,222) | (48,127,272) |
Fund share transactions: (at net asset value of $1.00 per share) Proceeds from shares sold | 1,728,665,432 | 18,093,925,189 |
Reinvestment of distributions | 9,639,047 | 45,429,416 |
Cost of shares redeemed | (1,960,522,455) | (19,822,015,528) |
Net increase (decrease) in net assets from Fund share transactions | (222,217,976) | (1,682,660,923) |
Increase (decrease) in net assets | (222,034,352) | (1,682,890,409) |
Net assets at beginning of period | 3,446,542,966 | 5,129,433,375 |
Net assets at end of period (including accumulated distributions in excess of net investment income of $25,229 and $198,790, respectively) | $ 3,224,508,614 | $ 3,446,542,966 |
The accompanying notes are an integral part of the financial statements.
Treasury Series
Statement of Changes in Net Assets | ||
Increase (Decrease) in Net Assets | Six Months Ended September 30, 2003 (Unaudited) | Year Ended March 31, |
Operations: Net investment income | $ 1,377,888 | $ 7,609,398 |
Net realized gain (loss) | 16,101 | 8,557 |
Net increase (decrease) in net assets resulting from operations | 1,393,989 | 7,617,955 |
Distributions to shareholders from: Net investment income: Treasury Shares | (924,164) | (5,835,505) |
Treasury Institutional Shares | (453,657) | (1,945,846) |
Total distributions | (1,377,821) | (7,781,351) |
Fund share transactions: (at net asset value of $1.00 per share) Proceeds from shares sold | 362,244,146 | 2,469,372,467 |
Reinvestment of distributions | 1,377,145 | 6,950,836 |
Cost of shares redeemed | (423,957,615) | (2,891,288,689) |
Net increase (decrease) in net assets from Fund share transactions | (60,336,324) | (414,965,386) |
Increase (decrease) in net assets | (60,320,156) | (415,128,782) |
Net assets at beginning of period | 530,441,480 | 945,570,262 |
Net assets at end of period (including undistributed net investment income of $36,114 and $36,047, respectively) | $ 470,121,324 | $ 530,441,480 |
The accompanying notes are an integral part of the financial statements.
Tax-Free Series
Statement of Changes in Net Assets | ||
Increase (Decrease) in Net Assets | Six Months Ended September 30, 2003 (Unaudited) | Year Ended March 31, |
Operations: Net investment income | $ 1,868,568 | $ 8,200,017 |
Net realized gain (loss) | 6,836 | 3,379 |
Net increase (decrease) in net assets resulting from operations | 1,875,404 | 8,203,396 |
Distributions to shareholders from net investment income: Tax-Free Shares | (1,149,513) | (6,135,417) |
Tax-Free Institutional Shares | (720,870) | (2,065,686) |
Total distributions | (1,870,383) | (8,201,103) |
Fund share transactions: (at net asset value of $1.00 per share) Proceeds from shares sold | 662,127,806 | 4,079,225,358 |
Reinvestment of distributions | 1,870,389 | 7,213,972 |
Cost of shares redeemed | (606,909,510) | (4,363,060,601) |
Net increase (decrease) in net assets from Fund share transactions | 57,088,685 | (276,621,271) |
Increase (decrease) in net assets | 57,093,706 | (276,618,978) |
Net assets at beginning of period | 898,130,780 | 1,174,749,758 |
Net assets at end of period (including accumulated distributions in excess of net investment | $ 955,224,486 | $ 898,130,780 |
The accompanying notes are an integral part of the financial statements.
Prime Sharesb | ||||||
Years Ended March 31, | 2003a | 2003 | 2002 | 2001 | 2000 | 1999 |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Net investment income | .0026 | .0108 | .0270 | .0578 | .0480 | .0473 |
Less: Distributions from net investment income | (.0026) | (.0108) | (.0270) | (.0578) | (.0480) | (.0473) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%) | .26** | 1.08 | 2.74 | 5.94 | 4.90 | 4.84 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ in thousands) | 2,787,741 | 2,879,253 | 4,320,764 | 5,735,781 | 5,772,616 | 3,727,990 |
Ratio of expenses (%) | .69* | .70 | .67 | .66 | .66 | .63 |
Ratio of net investment income (%) | .53* | 1.10 | 2.76 | 5.77 | 4.86 | 4.71 |
Prime Institutional Sharesc | ||||||
Years Ended March 31, | 2003a | 2003 | 2002 | 2001 | 2000 | 1999 |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Net investment income | .0045 | .0140 | .0302 | .0610 | .0511 | .0499 |
Less: Distributions from net investment income | (.0045) | (.0140) | (.0302) | (.0610) | (.0511) | (.0499) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%) | .45** | 1.40 | 3.06 | 6.28 | 5.24 | 5.11 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ in thousands) | 419,058 | 544,146 | 750,110 | 671,539 | 637,767 | 388,447 |
Ratio of expenses (%) | .32* | .38 | .36 | .34 | .34 | .36 |
Ratio of net investment income (%) | .90* | 1.42 | 3.01 | 6.01 | 5.18 | 4.98 |
a For the six months ended September 30, 2003 (Unaudited). b Prior to July 31, 2003, the Prime Shares were known as the Deutsche Bank Alex. Brown Cash Reserve Prime Shares. c Prior to July 31, 2003, the Prime Institutional Shares were known as the Deutsche Bank Alex. Brown Cash Reserve Prime Institutional Shares. * Annualized ** Not annualized |
Treasury Sharesc | ||||||
Years Ended March 31, | 2003a | 2003 | 2002 | 2001 | 2000 | 1999 |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Net investment income | .0023 | .0098 | .0250 | .0539 | .0431 | .0427 |
Less: Distributions from net investment income | (.0023) | (.0098) | (.0250) | (.0539) | (.0431) | (.0427) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%) | .23b** | .99b | 2.53b | 5.53b | 4.40b | 4.35 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ in thousands) | 374,207 | 390,982 | 745,638 | 866,508 | 790,443 | 816,700 |
Ratio of expenses before expense reductions (%) | .68* | .67 | .64 | .61 | .66 | .58 |
Ratio of expenses after expense reductions (%) | .63* | .62 | .59 | .56 | .61 | .58 |
Ratio of net investment income (%) | .46* | 1.01 | 2.47 | 5.36 | 4.31 | 4.26 |
Treasury Institutional Sharesd | ||||||
Years Ended March 31, | 2003a | 2003 | 2002 | 2001 | 2000 | 1999 |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Net investment income | .0042 | .0130 | .0281 | .0571 | .0462 | .0453 |
Less: Distributions from net investment income | (.0042) | (.0130) | (.0281) | (.0571) | (.0462) | (.0453) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%) | .42b** | 1.31b | 2.85b | 5.86b | 4.72b | 4.63 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ in thousands) | 95,914 | 139,460 | 199,932 | 137,520 | 98,668 | 122,563 |
Ratio of expenses before expense reductions (%) | .30* | .35 | .33 | .31 | .34 | .33 |
Ratio of expenses after expense reductions (%) | .25* | .30 | .28 | .26 | .29 | .33 |
Ratio of net investment income (%) | .84* | 1.33 | 2.71 | 5.66 | 4.62 | 4.54 |
a For the six months ended September 30, 2003 (Unaudited). b Total return would have been lower had certain expenses not been reduced. c Prior to July 31, 2003, the Treasury Shares were known as the Deutsche Bank Alex. Brown Cash Reserve Treasury Shares. d Prior to July 31, 2003, the Treasury Institutional Shares were known as the Deutsche Bank Alex. Brown Cash Reserve Treasury Institutional Shares. * Annualized ** Not annualized |
Tax-Free Sharesb | ||||||
Years Ended March 31, | 2003a | 2003 | 2002 | 2001 | 2000 | 1999 |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Net investment income | .0016 | .0074 | .0168 | .0333 | .0276 | .0277 |
Less: Distributions from net investment income | (.0016) | (.0074) | (.0168) | (.0333) | (.0276) | (.0277) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%) | .16** | .74 | 1.69 | 3.38 | 2.80 | 2.81 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ in thousands) | 735,134 | 699,983 | 1,006,613 | 1,701,940 | 1,664,370 | 1,047,391 |
Ratio of expenses (%) | .73* | .67 | .65 | .64 | .65 | .58 |
Ratio of net investment income (%) | .33* | .74 | 1.76 | 3.31 | 2.78 | 2.74 |
Tax-Free Institutional Sharesc | ||||||
Years Ended March 31, | 2003a | 2003 | 2002 | 2001 | 2000 | 1999 |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Net investment income | .0035 | .0107 | .0200 | .0363 | .0306 | .0303 |
Less: Distributions from net investment income | (.0035) | (.0107) | (.0200) | (.0363) | (.0306) | (.0303) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%) | .35** | 1.07 | 2.01 | 3.69 | 3.10 | 3.07 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ in thousands) | 220,091 | 198,148 | 168,137 | 173,956 | 117,446 | 84,600 |
Ratio of expenses (%) | .35* | .35 | .33 | .34 | .35 | .33 |
Ratio of net investment income (%) | .71* | 1.06 | 1.98 | 3.62 | 3.09 | 3.03 |
a For the six months ended September 30, 2003 (Unaudited). b Prior to July 31, 2003, the Tax-Free Shares were known as the Deutsche Bank Alex. Brown Cash Reserve Tax-Free Shares. c Prior to July 31, 2003, the Tax-Free Institutional Shares were known as the Deutsche Bank Alex. Brown Cash Reserve Tax-Free Institutional Shares. * Annualized ** Not annualized |
Note 1-Organization and Significant Accounting Policies
A. Organization
Cash Reserve Fund, Inc. (formerly Deutsche Bank Alex. Brown Cash Reserve Fund, Inc.) (the `Fund') is registered under the Investment Company Act of 1940 (the `Act'), as amended, as a diversified, open-end management investment company. The Fund is organized as a corporation under the laws of the state of Maryland. The Prime Series, the Treasury Series and the Tax-Free Series are the three series the Fund offers to investors.
The Prime Series offers six classes of shares to investors: Cash Reserve Prime Shares (`Prime Shares'), Scudder Cash Reserve Prime Class A Shares (`Class A Shares'), Scudder Cash Reserve Prime Class B Shares (`Class B Shares'), Scudder Cash Reserve Prime Class C Shares (`Class C Shares'), Quality Cash Reserve Prime Shares (`Quality Cash Shares') and Cash Reserve Prime Institutional Shares (`Prime Institutional Shares'). Certain detailed information for the Class A Shares, Class B Shares, Class C Shares and Quality Cash Shares is provided separately and is available upon request.
The Treasury Series offers two classes of shares to investors: Cash Reserve Treasury Shares (`Treasury Shares') and Cash Reserve Treasury Institutional Shares (`Treasury Institutional Shares').
The Tax-Free Series offers two classes of shares to investors: Cash Reserve Tax-Free Shares (`Tax-Free Shares') and Cash Reserve Tax-Free Institutional Shares (`Tax-Free Institutional Shares').
All shares have equal rights with respect to voting except that shareholders vote separately on matters affecting their rights as holders of a particular series or class.
The investment objective of each Series is as follows: Prime Series and Treasury Series-to seek as high a level of current income as is consistent with preservation of capital and liquidity; Tax-Free Series-to seek as high a level of current income exempt from federal income tax as is consistent with preservation of capital and liquidity. Details concerning the Series' investment objectives and policies and the risk factors associated with the Series' investments are described in the Series' Prospectus and Statement of Additional Information.
B. Valuation of Securities
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.
C. Securities Transactions and Investment Income
Securities transactions are recorded on trade date. Realized gains and losses are determined by comparing the proceeds of a sale or the cost of a purchase with a specific offsetting transaction.
Interest income, including amortization of premiums and accretion of discounts, is accrued daily. Estimated expenses are also accrued daily.
Distribution or service fees specifically attributable to a class are allocated to that class. All other expenses, income, gains and losses are allocated among the classes based upon their relative net assets.
D. Distributions
The Fund distributes all of its net investment income in the form of dividends, which are declared and recorded daily. Accumulated daily dividends are distributed to shareholders monthly.
E. Federal Income Taxes
It is the Fund's policy to continue to qualify as a regulated investment company under the Internal Revenue Code and to distribute substantially all of its taxable income to shareholders. Therefore, no federal income taxes have been accrued.
F. Repurchase Agreements
The Prime Series and Treasury Series (the `Series') may make short term investments in repurchase agreements that are fully collateralized by US government securities. Under the terms of a repurchase agreement, a financial institution sells fixed income securities to the Series and agrees to buy them back on a specified day in return for the principal amount of the original sale plus accrued interest. The custodial bank holds the collateral in a separate account until the agreement matures. If the value of the securities falls below the principal amount of the repurchase agreement plus accrued interest, the financial institution deposits additional collateral by the following business day. If the financial institution either fails to deposit the required additional collateral or fails to repurchase the securities as agreed, the Series has the right to sell the securities and recover any resulting loss from the financial institution. If the financial institution enters into bankruptcy, the Series' claims on the collateral may be subject to legal proceedings.
G. Estimates
In preparing its financial statements in conformity with accounting principles generally accepted in the United States, management makes estimates and assumptions. Actual results may be different.
Note 2-Fees and Transactions with Affiliates
Investment Company Capital Corp. (`ICCC'), an indirect, wholly owned subsidiary of Deutsche Bank AG, is the Advisor for each series. The Fund pays the Advisor an annual fee based on its aggregate average daily net assets which is calculated daily and paid monthly at the following annual rates: 0.30% of the first $500 million, 0.26% of the next $500 million, 0.25% of the next $500 million, 0.24% of the next $1 billion, 0.23% of the next $1 billion and 0.22% of the amount in excess of $3.5 billion. Accordingly, for the six months ended September 30, 2003, the fee pursuant to the management agreement was equivalent to an annualized effective rate of 0.24% of the Fund's aggregate average daily net assets.
The Prime Series pays the Advisor an additional advisory fee that is calculated daily and paid monthly at the annual rate of 0.02% of its average daily net assets. The Tax-Free Series pays the Advisor an additional advisory fee that is calculated daily and paid monthly at the annual rate of 0.03% of its daily net assets.
For the period April 1, 2003 through August 1, 2003, the Advisor contractually agreed to a fee waiver equal to 0.05% of the average net assets on the Treasury Series. For the period August 1, 2003 through September 30, 2003, the Advisor agreed to voluntarily continue the fee waiver of 0.05% of average net assets on the Treasury Series. Accordingly, for the six months ended September 30, 2003, the Advisor waived $126,413 of operating expenses for the Treasury Series.
During the six months ended September 30, 2003, ICCC was the Fund's accounting agent. Each Series paid the accounting agent a fixed fee of $13,000 on assets up to $10 million. On assets greater than $10 million, each Series paid the accounting agent an annual fee based on its average daily net assets which was calculated daily and paid monthly. Scudder Fund Accounting Corporation (`SFAC'), an affiliate of the Advisor, is responsible for the general accounting records and determining the daily net asset value per share of the Fund. SFAC has retained State Street Bank and Trust Company (`State Street') as a sub-agent that performs fund accounting and administration services.
Scudder Investments Service Company (`SISC'), an affiliate of the Advisor, is the Fund's transfer agent. Each Series paid the transfer agent a per account fee that is accrued daily and paid monthly. Pursuant to a sub-transfer agency agreement between SISC and DST Systems, Inc. (`DST'), SISC has delegated certain transfer agent and dividend paying agent functions to DST. The cost and expenses of such delegations are borne by SISC, not by the Fund.
During the six months ended September 30, 2003, ICCC voluntarily waived $20,277 and $382 of transfer agent fees for Class B Shares and Class C Shares of the Prime Series, respectively.
During the six months ended September 30, 2003, ICCC voluntarily waived $2,200 of transfer agent fees for the Tax-Free Shares.
Effective April 11, 2003, State Street serves as custodian for the Fund. Prior to April 11, 2003, Deutsche Bank Trust Company Americas, an affiliate of ICCC, was the Fund's custodian. The Fund pays the custodian an annual fee, which is accrued daily and payable monthly.
Certain officers and directors of the Fund are also officers or directors of ICCC or affiliated with Deutsche Bank AG. These persons are not paid by the Fund for serving in these capacities.
Note 3-Distribution and Service Fees
Scudder Distributors, Inc. (`SDI') is the Fund's Distributor. Each Series pays the Distributor an annual fee, pursuant to Rule 12b-1, based on its average daily net assets, which is calculated daily and paid monthly at the following annual rates: 0.25% of the Prime Shares, Class A Shares, Treasury Shares and Tax-Free Shares average daily net assets, 0.60% of the Quality Cash Shares average daily net assets and 0.75% of the Class B Shares and Class C Shares average daily net assets. The Prime Series also pays the Distributor a shareholder servicing fee based on the average daily net assets of the Class B Shares and Class C Shares which is calculated daily and paid monthly at the annual rate of 0.25%. The Fund does not pay fees on the Prime Institutional Shares, Treasury Institutional Shares and Tax-Free Institutional Shares.
The Prime Shares, Treasury Shares and Tax-Free Shares pay the Distributor a shareholder servicing fee, which is calculated daily and paid monthly at an annual rate of 0.07%. The Distributor uses this fee to compensate third parties that provide shareholder services to their clients who own shares.
Note 4-Expense Off-Set Arrangement
The Fund has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances were used to reduce a portion of the Fund's custodian expenses. During the six months ended September 30, 2003, the Fund's custodian fees were reduced by $2,025, $17 and $434 for the Prime Series, the Treasury Series, and the Tax-Free Series, respectively, under this arrangement.
Note 5-Share Transactions
The Fund is authorized to issue up to 20.81 billion shares of $.001 par value capital stock (12.66 billion Prime Series, 3.55 billion Treasury Series, 4.25 billion Tax-Free Series and 350 million undesignated). Transactions in capital shares were as follows (at net asset value of $1.00 per share):
Prime Series: | Six Months Ended | Year Ended | ||
Shares | Dollars | Shares | Dollars | |
Sold: | ||||
Prime Shares | 1,093,983,505 | $ 1,093,983,505 | 12,024,358,045 | $ 12,024,358,044 |
Prime Institutional Shares | 634,169,456 | 634,169,456 | 5,825,254,848 | 5,825,254,848 |
Class A Shares | 211,590 | 211,590 | 125,429,162 | 125,429,092 |
Class B Shares | 1,765 | 1,765 | 10,936,596 | 10,936,597 |
Class C Shares | - | - | 402,461 | 402,462 |
Quality Cash Shares | 299,116 | 299,116 | 107,544,397 | 107,544,146 |
$ 1,728,665,432 | $ 18,093,925,189 | |||
Reinvested: | ||||
Prime Shares | 7,323,721 | $ 7,323,721 | 36,581,377 | $ 36,581,378 |
Prime Institutional Shares | 2,286,336 | 2,286,336 | 8,460,923 | 8,460,923 |
Class A Shares | 20,736 | 20,736 | 132,199 | 132,199 |
Class B Shares | 3,173 | 3,173 | 49,958 | 49,957 |
Class C Shares | 104 | 104 | 1,934 | 1,934 |
Quality Cash Shares | 4,977 | 4,977 | 203,025 | 203,025 |
$ 9,639,047 | $ 45,429,416 | |||
Redeemed: | ||||
Prime Shares | (1,193,006,104) | $ (1,193,005,526) | (13,502,262,846) | $ (13,502,262,742) |
Prime Institutional Shares | (761,543,473) | (761,543,473) | (6,039,643,782) | (6,039,643,782) |
Class A Shares | (1,871,503) | (1,871,503) | (128,282,478) | (128,282,478) |
Class B Shares | (3,796,114) | (3,796,114) | (10,853,181) | (10,850,194) |
Class C Shares | (181,501) | (181,501) | (708,506) | (708,510) |
Quality Cash Shares | (124,338) | (124,338) | (140,267,822) | (140,267,822) |
$ (1,960,522,455) | $ (19,822,015,528) | |||
Net Decrease: | ||||
(222,218,554) | $ (222,217,976) | (1,682,663,690) | $ (1,682,660,923) |
Six Months Ended | Year Ended | |||
Treasury Series: | Shares | Dollars | Shares | Dollars |
Sold: | ||||
Treasury Shares | 299,258,477 | $ 299,258,477 | 1,887,082,754 | $ 1,887,082,721 |
Treasury Institutional Shares | 62,985,669 | 62,985,669 | 582,289,746 | 582,289,746 |
$ 362,244,146 | $ 2,469,372,467 | |||
Reinvested: | ||||
Treasury Shares | 923,485 | $ 923,485 | 5,494,804 | $ 5,494,804 |
Treasury Institutional Shares | 453,660 | 453,660 | 1,456,032 | 1,456,032 |
$ 1,377,145 | $ 6,950,836 | |||
Redeemed: | ||||
Treasury Shares | (316,969,246) | $ (316,969,246) | (2,247,103,538) | $ (2,247,103,537) |
Treasury Institutional Shares | (106,988,369) | (106,988,369) | (644,185,152) | (644,185,152) |
$ (423,957,615) | $ (2,891,288,689) | |||
Net decrease: | ||||
(60,336,324) | $ (60,336,324) | (414,965,354) | $ (414,965,386) |
Tax-Free Series: | Six Months Ended | Year Ended | ||
Shares | Dollars | Shares | Dollars | |
Sold: | ||||
Tax-Free Shares | 490,240,143 | $ 490,240,142 | 2,775,518,182 | $ 2,775,518,182 |
Tax-Free Institutional Shares | 171,887,664 | 171,887,664 | 1,303,707,175 | 1,303,707,176 |
$ 662,127,806 | $ 4,079,225,358 | |||
Reinvested: | ||||
Tax-Free Shares | 1,149,524 | $ 1,149,524 | 5,870,979 | $ 5,870,979 |
Tax-Free Institutional Shares | 720,865 | 720,865 | 1,342,993 | 1,342,993 |
$ 1,870,389 | $ 7,213,972 | |||
Redeemed: | ||||
Tax-Free Shares | (456,244,408) | $ (456,244,408) | (3,088,026,833) | $ (3,088,026,833) |
Tax-Free Institutional Shares | (150,665,102) | (150,665,102) | (1,275,033,768) | (1,275,033,768) |
$ (606,909,510) | $ (4,363,060,601) | |||
Net decrease: | ||||
57,088,686 | $ 57,088,685 | (276,621,272) | $ (276,621,271) |
Note 6-Tax Disclosures
The timing and characterization of certain income and capital gains distributions are determined annually in accordance with federal tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences primarily relate to distribution reclassifications. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of the Fund.
Distributions were characterized as follows for tax purposes:
Years Ended | March 31, 2003 | March 31, 2002 |
Prime Series Ordinary income* | $ 48,127,272 | $ 164,827,939 |
Treasury Series Ordinary income* | $ 7,781,351 | $ 24,815,619 |
Tax-Free Series Tax exempt income | $ 8,201,103 | $ 26,384,883 |
Ordinary income* | $ - | $ 243 |
At March 31, 2003, the components of distributable earnings on a tax basis were as follows:
Prime Series Undistributed ordinary income* | $ 1,044,023 |
Prime Series Capital loss carryforward | $ (19,600) |
Treasury Series Undistributed ordinary income* | $ 273,026 |
Tax-Free Series Undistributed tax exempt income | $ 114,991 |
Tax-Free Series Capital loss carryforward | $ (53,000) |
Tax-Free Series Unrealized appreciation (depreciation) on investments | $ (2,092) |
* For tax purposes, short-term capital gains distributions are considered ordinary income distributions.
The tax character of current year distributions, if any, will be determined at the end of the current fiscal year.
At March 31, 2003, the Prime Series had a net tax basis capital loss carryforward of approximately $19,600 which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until March 31, 2011, the expiration date, whichever occurs first.
At March 31, 2003, the Tax-Free Series had a net tax basis capital loss carryforward of approximately $53,000 which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until March 31, 2008 ($33,000) and March 31, 2009 ($20,000), the respective expiration dates, whichever occurs first.
In addition, from November 1, 2002 through March 31, 2003, the Tax-Free Series incurred approximately $4,200 of net realized capital losses. As permitted by tax regulations, the Tax-Free Series intends to elect to defer these losses and treat them as arising in the fiscal year ending March 31, 2004.
This privacy statement is issued by Deutsche Investment Management Americas Inc., Deutsche Asset Management, Inc., Scudder Distributors, Inc., Scudder Investor Services, Inc., Scudder Trust Company and Deutsche Asset Management mutual funds.
We never sell customer lists or individual client information. We consider privacy fundamental to our client relationships and adhere to the policies and practices described below to protect current and former clients' information. Internal policies are in place to protect confidentiality, while allowing client needs to be served. Only individuals who need to do so in carrying out their job responsibilities may access client information. We maintain physical, electronic and procedural safeguards that comply with federal standards to protect confidentiality. These safeguards extend to all forms of interaction with us, including the Internet.
In the normal course of business, clients give us nonpublic personal information on applications and other forms, on our websites, and through transactions with us or our affiliates. Examples of the nonpublic personal information collected are name, address, Social Security number and transaction and balance information. To be able to serve our clients, certain of this client information is shared with affiliated and nonaffiliated third party service providers such as transfer agents, custodians, and broker-dealers to assist us in processing transactions and servicing your account with us. In addition, we may disclose all of the information we collect to companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements. The organizations described above that receive client information may only use it for the purpose designated by the Scudder Companies listed above.
We may also disclose nonpublic personal information about you to other parties as required or permitted by law. For example, we are required or we may provide information to government entities or regulatory bodies in response to requests for information or subpoenas, to private litigants in certain circumstances, to law enforcement authorities, or any time we believe it necessary to protect the firm.
Questions on this policy may be sent to:
Deutsche Asset Management
Attention: Correspondence
P.O. Box 219415
Kansas City, MO 64121-9415
August 2003
Proxy Voting
A description of the fund's policies and procedures for voting proxies for portfolio securities can be found on our Web site - - scudder.com (type "proxy voting" in the search field) - or on the SEC's Web site - www.sec.gov. To obtain a written copy without charge, call us toll free at (800) 621-1048.
the six-month period ended September 30, 2002, and offer an outlook for the months ahead.
ITEM 2. CODE OF ETHICS. Not 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 POLICIES 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. (b) There have been no significant changes in the Registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation and until the filing of this report, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS. (a)(1) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. (b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.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: Deutsche Bank Alex Brown Cash Reserves Portfolio By: /s/Richard T. Hale ---------------------------- Richard T. Hale Chief Executive Officer Date: November 24, 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: Deutsche Bank Alex Brown Cash Reserves Portfolio By: /s/Richard T. Hale ---------------------------- Richard T. Hale Chief Executive Officer Date: November 24, 2003 ---------------------------- By: /s/Charles A. Rizzo ---------------------------- Charles A. Rizzo Chief Financial Officer Date: November 24, 2003 ---------------------------- 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: Deutsche Bank Alex Brown Cash Reserves Tax-Free Portfolio By: /s/Richard T. Hale ---------------------------- Richard T. Hale Chief Executive Officer Date: November 24, 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: Deutsche Bank Alex Brown Cash Reserves Tax-Free Portfolio By: /s/Richard T. Hale ---------------------------- Richard T. Hale Chief Executive Officer Date: November 24, 2003 ---------------------------- By: /s/Charles A. Rizzo ---------------------------- Charles A. Rizzo Chief Financial Officer Date: November 24, 2003 ---------------------------- 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: Deutsche Bank Alex Brown Cash Reserves Treasury Portfolio By: /s/Richard T. Hale ---------------------------- Richard T. Hale Chief Executive Officer Date: November 24, 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: Deutsche Bank Alex Brown Cash Reserves Treasury Portfolio By: /s/Richard T. Hale ---------------------------- Richard T. Hale Chief Executive Officer Date: November 24, 2003 ---------------------------- By: /s/Charles A. Rizzo ---------------------------- Charles A. Rizzo Chief Financial Officer Date: November 24, 2003 ----------------------------