UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number 811-2527
SCUDDER MONEY FUNDS
----------------------
(Exact Name of Registrant as Specified in Charter)
222 South Riverside Plaza Chicago, Illinois 60606
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(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (617) 295-2663
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Salvatore Schiavone
Two International Place
Boston, Massachusetts 02110
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(Name and Address of Agent for Service)
Date of fiscal year end: 7/31
Date of reporting period: 1/31/2004
ITEM 1. REPORT TO STOCKHOLDERS
[Scudder Investments logo]
Scudder Money FundsScudder Money Market FundScudder Government Money FundScudder Tax-Exempt Money Fund |
| |
| Semiannual Report to Shareholders |
| January 31, 2004 |
This report must be preceded or accompanied by a prospectus. To obtain a prospectus for any of our funds, refer to the Account Management Resources information provided in the back of this booklet. We advise you to consider the fund's objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the fund. Please read the prospectus carefully before you invest.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in them.
Scudder Investments is part of Deutsche Asset Management, which is the marketing name in the US for the asset management activities of Deutsche Bank AG, Deutsche Investment Management Americas Inc., Deutsche Asset Management Inc., Deutsche Asset Management Investment Services Ltd., Deutsche Bank Trust Company Americas and Scudder Trust Company.
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.
Performance Summary January 31, 2004 |
|
Scudder Money Market Fund
All performance shown is historical and does not guarantee future results. Current performance may be higher or lower than the performance data quoted.
Yield Comparison |
[] Fund Yield [] First Tier Money Fund Average
|
 |
Weekly 7-Day Average Yield |
Yields are historical, will fluctuate and do not guarantee future results. Please call (800) 621-1048 for the Fund's most up-to-date performance.
Scudder Money Market Fund is compared to the First Tier Money Fund Average which consists of all non-institutional taxable money market funds investing in only first tier (highest rating) securities tracked by iMoneyNet, Inc.
7-day average yield is the annualized net investment income per share for the period shown. Gains or losses are not included.
Lipper Ranking as of1/31/04 |
Period | Rank | | Number of Funds Tracked | Percentile Ranking |
1-Year
| 38 | of | 399 | 10 |
3-Year
| 38 | of | 350 | 11 |
5-Year
| 27 | of | 289 | 10 |
10-Year
| 19 | of | 166 | 11 |
Lipper Inc. rankings are based upon changes in net asset value with all dividends reinvested for the periods indicated as of 1/31/2004. Rankings are historical and do not guarantee future performance. The fund is compared to the Lipper Money Market Instrument Fund category.
Source: Lipper Inc.
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.
Scudder Government Money Fund
All performance shown is historical and does not guarantee future results. Current performance may be higher or lower than the performance data quoted.
Yield Comparison |
[] Fund Yield [] Government Money Fund Average
|
 |
Weekly 7-Day Average Yield |
Yields are historical, will fluctuate and do not guarantee future results. Please call (800) 621-1048 for the Fund's most up-to-date performance.
Scudder Government Money Fund is compared to the Government Money Fund Average which consists of all non-institutional government money market funds tracked by iMoneyNet, Inc.
7-day average yield is the annualized net investment income per share for the period shown. Gains or losses are not included.
Lipper Ranking as of1/31/04 |
Period | Rank | | Number of Funds Tracked | Percentile Ranking |
1-Year
| 9 | of | 122 | 8 |
3-Year
| 11 | of | 114 | 9 |
5-Year
| 9 | of | 99 | 9 |
10-Year
| 7 | of | 69 | 10 |
Lipper Inc. rankings are based upon changes in net asset value with all dividends reinvested for the periods indicated as of 1/31/2004. Rankings are historical and do not guarantee future performance. The fund is compared to the Lipper Government Money Market Fund category.
Source: Lipper Inc.
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.
Scudder Tax-Exempt Money Fund
All performance shown is historical and does not guarantee future results. Current performance may be higher or lower than the performance data quoted.
Yield Comparison |
[] Fund Yield [] Tax-Free Money Fund Average
|
 |
Weekly 7-Day Average Yield |
Yields are historical, will fluctuate and do not guarantee future results. Income from Scudder Tax-Exempt Money Fund may be subject to state and local taxes and the alternative minimum tax. Please call (800) 621-1048 for the Fund's most up-to-date performance.
Scudder Tax-Exempt Money Fund is compared to the Tax-Free Money Fund Average which consists of all non-institutional tax-free money market funds tracked by iMoneyNet, Inc.
7-day average yield is the annualized net investment income per share for the period shown. Gains or losses are not included.
Lipper Ranking as of1/31/04 |
Period | Rank | | Number of Funds Tracked | Percentile Ranking |
1-Year
| 15 | of | 126 | 12 |
3-Year
| 13 | of | 119 | 11 |
5-Year
| 8 | of | 105 | 8 |
10-Year
| 6 | of | 77 | 8 |
Lipper Inc. rankings are based upon changes in net asset value with all dividends reinvested for the periods indicated as of 1/31/2004. Rankings are historical and do not guarantee future performance. The fund is compared to the Lipper Tax-Exempt Money Market Fund category.
Source: Lipper Inc.
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.
Portfolio Management Review |
|
In the following interview, Portfolio Managers Christine C. Haddad and Joseph Benevento discuss the market environment and their team's approach to managing Scudder Money Funds during the six-month period ended January 31, 2004.
Q: Will you discuss the market environment for the funds during the most recent semiannual period?
A: Following the Federal Reserve Board's surprising decision to lower the federal funds rate by only 25 basis points - to 1% - back in June 2003, the US economy began to stabilize in the fall. The money market yield curve steepened, and - following a long period of declining short-term interest rate levels - we were finally able to extend the funds' maturity. The government reported approximately 8% GDP growth for the third quarter, which seemed to show that the economy was finally turning the corner. With this announcement, the focus for investors turned to whether a renewed economy would produce significant job growth. Unfortunately, there was no sign that new jobs were being created at a significant rate during the third quarter.
In the second half of 2003, the Federal Reserve Board met several times and held short-term rates steady at 1%, repeatedly stating its bias toward staving off deflation. GDP was reported at approximately 4% for the fourth quarter and productivity levels remained high, yet the level of job creation remained stubbornly low. During the fourth quarter, the high level of volatility in the money market yield curve made for a difficult investing environment, as the one-year LIBOR rate traded in an uncharacteristically wide range of 1.40% to 1.65%.1 (To give an indication of the level of volatility in the market over the period, the one-year LIBOR ranged from 1.24% to 1.63% from July 2003 through January 2004; a more typical range during any given six-month period is 10 to 15 basis points.)
1 LIBOR, the London Interbank Offered Rate, is the most widely used benchmark or reference rate for short-term interest rates. LIBOR is the rate of interest at which banks borrow funds from other banks, in large volume, in the international market.In December, the Fed, satisfied by the evidence of a rebound in the economy, removed its anti-deflation bias and maintained its focus on the need for job creation. At the time, the market was "pricing in" a federal funds rate hike of 25 basis points in August 2004. But moving into January, with no sign of a pickup in job growth, the Fed held off on declaring a bias toward tightening credit, and the market's forecast for a possible short-term interest rate increase was pushed back to October 2004 and beyond. The fact that this is a presidential election year adds some uncertainty for Fed-watchers, as the Fed likely wants to avoid having its decisions on short-term rates cast in a political light.
Q: How did the funds perform over the most recent semiannual period?
A: We were able to produce competitive yields in Scudder Money Market Fund, Scudder Government Money Fund and Scudder Tax-Exempt Money Fund for the period. Given the volatility of the money market yield curve, through the third and fourth quarters we were able to pick up some additional yield for the funds as short-term rates rose. But in January, the curve began to flatten, and yields retreated. As securities within the portfolios mature, the funds are investing at lower interest rate levels.
Q: What detracted from performance during the period?
A: In December, we kept additional cash in the funds on hand - as we do each year - to meet any tax-related redemptions as well as investors' year-end liquidity needs. Keeping a larger percentage of assets in overnight liquidity detracted somewhat from the funds' yields and total returns.
Q: In light of market conditions during the six-month period, what has been the strategy for Scudder Money Market Fund and Scudder Government Money Fund?
A: During the period, we pursued a "barbell" strategy. That is, we purchased for the funds longer-duration instruments with maturities of nine months to one year, as well as short-term securities with maturities of three months or less; we kept the shorter-term securities in the portfolios mainly to meet liquidity needs. In addition, we de-emphasized callable agency securities in Scudder Money Market Fund, as they became a less useful cash management tool as yield spreads compressed. Over the six-month period, we maintained an average maturity of approximately 78 for the Scudder Money Market Fund and approximately 73 days for the Scudder Government Money Fund.
Toward the close of 2003, we increased the funds' allocation in floating-rate securities. The purpose of this strategy is to position the funds to benefit if the economy begins to create more jobs and the Fed decides to switch to a tightening bias earlier than expected. The interest rate of floating-rate securities adjusts periodically, based on the position of the yield curve. There are floating-rate securities that adjust daily, monthly and quarterly, based on indices such as LIBOR and the federal funds rate.
Q: What has been the strategy for Scudder Tax-Exempt Money Fund?
A: During the period, the supply of short-term municipal paper increased sharply due to sluggish economic growth at the start of the period and a slowdown in individual state and local government tax collection. Increased supply in the overall market was met with a surge in demand, as many investors took a defensive stance within their portfolios.
Over the reporting period, Scudder Tax-Exempt Money Fund targeted a neutral average maturity as compared with similar funds. Currently the portfolio is positioned with an average maturity of approximately 46 days, with 72% of assets in floating-rate securities and 28% in fixed-rate instruments. During the period, we continued to focus on the highest-quality investments while seeking competitive yields across the municipal money market 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.
Q: Do you anticipate any change in your management strategies?
A: Going forward, we will continue our insistence on the highest credit quality within the funds. We also plan to maintain our conservative investment strategies and standards. We continue to apply a careful approach to investing on behalf of the funds and to seek competitive yields for our shareholders.
The views expressed in this report reflect those of the portfolio managers only through the end of the period of the report as stated on the cover. The managers' views are subject to change at any time based on market and other conditions and should not be construed as a recommendation.
Portfolio Summary January 31, 2004 |
|
Scudder Money Market Fund
Portfolio Composition | 1/31/04 | 7/31/03 |
|
Commercial Paper
| 34%
| 31%
|
Floating Rate Notes
| 28%
| 24%
|
US Government Sponsored Agency Obligation
| 17%
| 14%
|
Certificates of Deposit and Bank Notes
| 12%
| 16%
|
Repurchase Agreements
| 8%
| 15%
|
Other Investments
| 1%
| -
|
| 100%
| 100%
|
Weighted Average Maturity* |
|
|
Scudder Money Market Fund
| 81 days
| 84 days
|
First Tier Money Fund Average
| 55 days
| 53 days
|
Scudder Government Money Fund
Portfolio Composition | 1/31/04 | 7/31/03 |
|
Agencies Not Backed by the Full Faith and Credit of the US Government
| 74%
| 73%
|
Repurchase Agreements
| 19%
| 21%
|
Agencies Backed by the Full Faith and Credit of the US Government
| 7%
| 6%
|
| 100%
| 100%
|
Weighted Average Maturity* |
|
|
Scudder Government Money Fund
| 66 days
| 84 days
|
Government Money Fund Average
| 55 days
| 49 days
|
Scudder Tax-Exempt Money Fund
Portfolio Composition | 1/31/04 | 7/31/03 |
|
Municipal Investments
| 100%
| 100%
|
Weighted Average Maturity* |
|
|
Scudder Tax-Exempt Money Fund
| 46 days
| 21 days
|
Tax-Free Money Fund Average
| 42 days
| 41 days
|
* The Funds are compared to their respective iMoneyNet category: the First Tier Money Fund Average consists of all non-institutional taxable money market funds investing in only first tier (highest rating) securities; Government Money Fund Average consists of all non-institutional government money market funds; Tax-Free Money Fund Average consists of all non-institutional tax-free money market funds.Portfolio composition is subject to change. For more complete details about the Funds' holdings, see pages 11-24. A quarterly Fact Sheet is available upon request. Information concerning portfolio holdings of the Fund as of month end is available upon request no earlier than 15 days after month end. Please see the Account Management Resources section for contact information.
Investment Portfolio as of January 31, 2004 (Unaudited) | |
|
Scudder Money Market Fund | Principal Amount ($) | Value ($) |
|
|
Certificates of Deposit and Bank Notes 12.2% |
Barclays Bank PLC, 1.04%, 4/28/2004
| 25,000,000
| 25,000,000
|
Canadian Imperial Bank of Commerce, 1.31%, 4/5/2004
| 50,000,000
| 50,000,000
|
Canadian Imperial Bank of Commerce, 1.345%, 3/25/2004
| 15,000,000
| 14,999,891
|
Credit Agricole Indosuez SA, 1.18%, 10/29/2004
| 25,000,000
| 25,000,000
|
Credit Lyonnais SA, 1.15%, 4/27/2004
| 20,000,000
| 20,000,000
|
DEPFA Bank Europe PLC, 1.15%, 5/19/2004
| 30,000,000
| 30,000,000
|
DEPFA Bank Europe PLC, 1.185%, 10/26/2004
| 50,000,000
| 50,000,000
|
Fortis Bank NV, 1.385%, 9/3/2004
| 20,000,000
| 19,998,824
|
HBOS Treasury Services PLC, 1.11%, 2/18/2004
| 25,000,000
| 25,000,000
|
HBOS Treasury Services PLC, 1.16%, 3/23/2004
| 36,000,000
| 36,000,000
|
KBC Bank NV, 1.17%, 10/27/2004
| 35,000,000
| 35,000,000
|
Landesbank Baden Wuertemberg, 1.33%, 8/10/2004
| 20,000,000
| 20,006,230
|
Landesbank Hessen-Thuringen Girozentrale, 1.27%, 9/13/2004
| 16,000,000
| 15,995,699
|
National Australia Bank Ltd., 1.17%, 10/13/2004
| 20,000,000
| 19,999,260
|
Norddeutsche Landesbank Girozentrale, 1.1%, 7/6/2004
| 15,000,000
| 14,999,679
|
Norddeutsche Landesbank Girozentrale, 1.17%, 8/20/2004
| 20,000,000
| 20,000,000
|
Societe Generale, 1.13%, 7/7/2004
| 5,000,000
| 5,000,000
|
Societe Generale, 1.17%, 10/22/2004
| 20,000,000
| 20,000,000
|
Total Certificates of Deposit and Bank Notes (Cost $446,999,583)
| 446,999,583 |
|
Commercial Paper 34.2% |
Abbott Laboratories, 5.125%, 7/1/2004
| 7,975,000
| 8,097,868
|
Banco Bilbao Vizcaya ARG, 1.11%, 6/30/2004
| 25,000,000
| 25,002,049
|
Bank of Nova Scotia, 1.105%**, 3/16/2004
| 75,000,000
| 74,898,708
|
CC (USA), Inc., 1.12%**, 3/15/2004
| 25,000,000
| 24,966,556
|
CC (USA), Inc., 1.335%, 8/13/2004
| 30,000,000
| 30,000,000
|
CIT Group Holdings, Inc., 1.06%**, 5/10/2004
| 30,000,000
| 29,912,550
|
CIT Group Holdings, Inc., 1.13%**, 2/23/2004
| 35,000,000
| 34,975,831
|
CIT Group Holdings, Inc., 1.13%**, 5/24/2004
| 23,000,000
| 22,918,420
|
CIT Group Holdings, Inc., 1.14%**, 7/19/2004
| 30,000,000
| 29,839,450
|
CIT Group Holdings, Inc., 1.15%**, 6/21/2004
| 10,000,000
| 9,954,958
|
CIT Group Holdings, Inc., 1.16%**, 3/15/2004
| 30,000,000
| 29,958,433
|
CIT Group Holdings, Inc., 1.16%**, 3/18/2004
| 25,000,000
| 24,962,944
|
Compass Securitization, 1.03%**, 2/10/2004
| 45,000,000
| 44,988,413
|
CRC Funding LLC, 1.04%**, 3/30/2004
| 38,000,000
| 37,936,329
|
Dorada Finance, Inc., 1.12%**, 3/23/2004
| 24,000,000
| 23,961,920
|
Goldman Sachs Group, Inc., 1.25%, 10/25/2004
| 50,000,000
| 50,000,000
|
Grampian Funding Ltd, 1.1%**, 7/8/2004
| 16,000,000
| 15,922,756
|
Grampian Funding Ltd, 1.13%**, 3/19/2004
| 56,000,000
| 55,917,384
|
Greyhawk Funding LLC, 1.04%**, 2/24/2004
| 44,000,000
| 43,970,764
|
Greyhawk Funding LLC, 1.11%**, 2/9/2004
| 58,000,000
| 57,985,693
|
Heller Financial, Inc., 6.0%, 3/19/2004
| 30,000,000
| 30,182,463
|
Irish Life & Permanent, 1.04%**, 4/14/2004
| 33,000,000
| 32,930,407
|
K2 (USA) LLC, 1.12%**, 3/22/2004
| 25,000,000
| 24,961,111
|
K2 (USA) LLC, 1.13%**, 3/29/2004
| 26,000,000
| 25,953,482
|
K2 (USA) LLC, 1.15%**, 4/23/2004
| 45,000,000
| 44,882,125
|
K2 (USA) LLC, 1.15%**, 5/10/2004
| 20,000,000
| 19,936,750
|
Lake Constance Funding, 1.11%**, 2/18/2004
| 48,400,000
| 48,374,630
|
Liberty Street Funding, 1.1%**, 3/19/2004
| 40,000,000
| 39,942,556
|
Scaldis Capital LLC, 1.04%**, 2/17/2004
| 65,000,000
| 64,970,089
|
Scaldis Capital LLC, 1.09%**, 3/22/2004
| 47,753,000
| 47,680,707
|
Scaldis Capital LLC, 1.12%**, 3/30/2004
| 25,000,000
| 24,954,889
|
Scaldis Capital LLC, 1.13%**, 3/24/2004
| 25,000,000
| 24,959,194
|
Svenska Handelsbanken, Inc., 1.04%**, 3/29/2004
| 56,957,000
| 56,863,211
|
Svenska Handelsbanken, Inc., 1.1%**, 2/10/2004
| 30,000,000
| 29,991,750
|
Tango Finance Corp., 1.13%**, 3/18/2004
| 35,000,000
| 34,949,464
|
Windmill Funding Corp., 1.09%**, 2/2/2004
| 25,000,000
| 24,999,243
|
Total Commercial Paper (Cost $1,252,703,097)
| 1,252,703,097 |
|
Floating Rate Notes* 27.8% |
American Honda Finance Corp., 1.1%, 4/8/2004
| 20,000,000
| 19,999,634
|
American Honda Finance Corp., 1.32%, 5/20/2004
| 40,000,000
| 40,021,745
|
Associates Corp. of North America, 1.27%, 6/15/2004
| 25,000,000
| 25,000,000
|
Associates Corp. of North America, 1.27%, 6/25/2004
| 65,000,000
| 65,000,000
|
Bear Stearns Bank PLC, 1.213%, 1/1/2144
| 100,000,000
| 100,000,000
|
Blue Heron Funding, 1.13%, 5/19/2004
| 65,000,000
| 65,000,000
|
CC (USA), Inc., 1.055%, 9/24/2004
| 50,000,000
| 49,996,776
|
CC (USA), Inc., 1.055%, 9/27/2004
| 21,000,000
| 20,998,636
|
Federal Farm Credit, 1.005%, 12/15/2004
| 50,000,000
| 49,993,519
|
Federal Farm Credit, 1.03%, 6/13/2005
| 15,000,000
| 14,997,956
|
Federal Farm Credit, 1.03%, 1/17/2006
| 25,000,000
| 25,000,000
|
Goldman Sachs Group, Inc., 1.2%, 4/7/2004
| 50,000,000
| 50,000,000
|
Goldman Sachs Group, Inc., 1.21%, 4/13/2004
| 50,000,000
| 50,000,000
|
Goldman Sachs Group, Inc., 1.42%, 2/5/2004
| 30,000,000
| 30,000,064
|
Granite Mortgages PLC, 1.06%, 12/20/2004
| 20,000,000
| 20,000,000
|
Heller Financial, Inc., 1.9%, 4/2/2004
| 15,000,000
| 15,019,384
|
Landesbank Baden Wuertemberg, 1.1%, 3/15/2004
| 55,000,000
| 55,002,280
|
Merrill Lynch & Co., Inc., 1.1%, 2/4/2005
| 25,000,000
| 25,000,000
|
Morgan Stanley Dean Witter & Co., 1.1%, 2/20/2004
| 60,000,000
| 60,000,000
|
Morgan Stanley Dean Witter & Co., 1.13%, 2/26/2004
| 50,000,000
| 50,000,000
|
Morgan Stanley Dean Witter & Co., 1.13%, 7/23/2004
| 50,000,000
| 50,000,000
|
Nationwide Building SOC, 1.09%, 7/23/2004
| 50,000,000
| 50,000,000
|
Swedbank, 1.07%, 10/12/2004
| 50,000,000
| 49,994,720
|
Volkswagen Auto Loan Trust, 1.005%, 7/20/2004
| 9,740,192
| 9,740,192
|
Westdeutsche Landesbank AG, 1.21%, 8/31/2004
| 30,000,000
| 30,000,000
|
Total Floating Rate Notes (Cost $1,020,764,906)
| 1,020,764,906 |
|
US Government Sponsored Agency Obligations 17.4% |
Federal Home Loan Bank, 0.995%*, 10/12/2004
| 60,000,000
| 59,983,195
|
Federal Home Loan Bank, 1.01%, 7/20/2004
| 115,000,000
| 115,000,000
|
Federal Home Loan Bank, 1.23%, 7/6/2004
| 25,000,000
| 25,000,000
|
Federal Home Loan Bank, 1.25%, 7/2/2004
| 55,000,000
| 55,000,000
|
Federal Home Loan Bank, 1.45%, 1/11/2005
| 35,000,000
| 35,000,000
|
Federal Home Loan Mortgage Corp., 1.11%*, 10/7/2005
| 65,000,000
| 65,000,000
|
Federal Home Loan Mortgage Corp., 1.15%**, 5/20/2004
| 10,000,000
| 9,965,181
|
Federal National Mortgage Association, 0.543%**, 6/25/2004
| 25,102,253
| 25,047,987
|
Federal National Mortgage Association, 1.06%, 7/20/2004
| 10,000,000
| 9,991,007
|
Federal National Mortgage Association, 1.08%, 7/23/2004
| 10,000,000
| 10,000,000
|
Federal National Mortgage Association, 1.45%, 9/14/2004
| 15,000,000
| 15,000,000
|
Federal National Mortgage Association, 1.5%, 9/24/2004
| 20,000,000
| 19,998,784
|
Federal National Mortgage Association, 1.5%, 11/16/2004
| 40,000,000
| 40,000,000
|
Federal National Mortgage Association, 1.52%, 1/19/2005
| 25,000,000
| 24,995,497
|
Federal National Mortgage Association, 1.55%, 12/6/2004
| 30,000,000
| 30,000,000
|
Federal National Mortgage Association, 1.6%, 12/29/2004
| 30,000,000
| 30,000,000
|
Federal National Mortgage Association, 3.0%, 6/15/2004
| 20,000,000
| 20,130,023
|
Federal National Mortgage Association, 3.5%, 9/15/2004
| 26,479,000
| 26,821,244
|
Federal National Mortgage Association, 5.625%, 5/14/2004
| 20,000,000
| 20,252,430
|
Total US Government Sponsored Agency Obligations (Cost $637,185,348)
| 637,185,348 |
|
Other Investments 0.5% |
Texas State Veteran's Hospital, 1.080%+, 12/1/2029 (b)
(Cost $20,000,000)
| 20,000,000
| 20,000,000 |
Repurchase Agreements 7.9% |
Bear Stearns & Co., Inc., 1.04%, dated 10/02/2003, to be repurchased at $50,176,222 on 2/2/2004 (c)
| 50,000,000
| 50,000,000
|
Citigroup Global Markets, 1.03%, dated 1/30/2004, to be repurchased at $100,008,583 on 2/2/2004 (d)
| 100,000,000
| 100,000,000
|
JP Morgan Securities, Inc., 1.04%, dated 1/30/2004, to be repurchased at $135,011,700 on 2/2/2004 (e)
| 135,000,000
| 135,000,000
|
State Street Bank and Trust Co., 0.94%, dated 1/30/2004, to be repurchased at $2,943,231 on 2/2/2004 (f)
| 2,943,000
| 2,943,000
|
Total Repurchase Agreements (Cost $287,943,000)
| 287,943,000 |
Total Investment Portfolio - 100.0% (Cost $3,665,595,934) (a)
| 3,665,595,934 |
* 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 January 31, 2004.** Annualized yield at time of purchase; not a coupon rate.+ 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 rates as of January 31, 2004.(a) The cost for federal income tax purposes was $3,665,595,934.(b) Security incorporates a letter of credit or line of credit from a major bank.(c) Collateralized by:Principal Amount ($) | | Security | Rate (%) | Maturity Date | Collateral Value ($) |
|
28,555,000
|
| Federal Home Loan Mortgage Corp.
| 5.50
| 12/15/2031
| 28,936,495
|
22,975,000
|
| Federal National Mortgage Association
| 5.50
| 1/25/2033
| 22,067,281
|
Total Collateral Value
| 51,003,776 |
(d) Collateralized by $99,307,000 Federal Home Loan Mortgage Corp. securities, 6.0%, maturing on 12/24/2016 with a value of $102,000,206.The accompanying notes are an integral part of the financial statements.
(e) Collateralized by:Principal Amount ($) | | Security | Rate (%) | Maturity Date | Collateral Value ($) |
|
21,000,000
| | Government National Mortgage Association
| 4.50
| 8/20/2032
| 18,845,907
|
16,186,000
| | Government National Mortgage Association
| 5.00
| 11/16/2018
| 16,437,334
|
15,000,000
| | Government National Mortgage Association
| 3.50
| 2/16/2026
| 14,224,993
|
10,006,166
| | Federal National Mortgage Association
| 5.50
| 9/15/2017
| 10,386,282
|
20,000,000
| | Federal National Mortgage Association
| 5.50
| 10/15/2027
| 20,948,028
|
1,391,000
| | Federal National Mortgage Association
| 5.50
| 4/15/2032
| 1,405,904
|
14,697,000
| | Federal National Mortgage Association
| 5.50
| 9/25/2029
| 15,000,602
|
25,000,000
| | Federal National Mortgage Association
| 3.50
| 2/25/2033
| 24,469,259
|
15,970,000
| | Federal National Mortgage Association
| 3.50
| 11/25/2032
| 15,986,230
|
Total Collateral Value
| 137,704,539 |
(f) Collateralized by $2,980,000 Federal Home Loan Mortgage Corp. securities, 2.05%, maturing on 10/14/2005 with a value of $3,002,758.The accompanying notes are an integral part of the financial statements.
Scudder Government Money Fund
| Principal Amount ($) | Value ($) |
|
|
Agencies Not Backed by the Full Faith and Credit of the US Government 73.8% |
US Government Sponsored Agencies
|
Federal Farm Credit Bank, 1.005%*, 12/15/2004
| 50,000,000
| 49,993,519
|
Federal Farm Credit Bank, 1.03%*, 6/13/2005
| 15,000,000
| 14,997,956
|
Federal Farm Credit Bank, 1.03%*, 12/27/2005
| 15,000,000
| 15,000,000
|
Federal Farm Credit Bank, 1.03%*, 1/17/2006
| 15,000,000
| 15,000,000
|
Federal Home Loan Bank, 1.01%, 7/20/2004
| 5,000,000
| 5,000,000
|
Federal Home Loan Bank, 1.19%*, 2/14/2005
| 4,000,000
| 4,000,000
|
Federal Home Loan Bank, 1.45%, 1/11/2005
| 10,000,000
| 10,000,000
|
Federal Home Loan Bank, 4.875%, 4/16/2004
| 10,000,000
| 10,076,882
|
Federal Home Loan Mortgage Corp., 1.11%*, 10/7/2005
| 10,000,000
| 10,000,000
|
Federal Home Loan Mortgage Corp., 1.1%**, 2/2/2004
| 20,000,000
| 19,999,389
|
Federal Home Loan Mortgage Corp., 1.15%**, 5/20/2004
| 8,000,000
| 7,972,144
|
Federal National Mortgage Association, 1.06%*, 2/23/2005
| 15,000,000
| 15,000,000
|
Federal National Mortgage Association, 1.06%, 7/20/2004
| 5,000,000
| 4,995,504
|
Federal National Mortgage Association, 1.08%**, 2/6/2004
| 25,000,000
| 24,996,250
|
Federal National Mortgage Association, 1.08%, 7/23/2004
| 10,000,000
| 10,000,000
|
Federal National Mortgage Association, 1.11%**, 3/10/2004
| 20,000,000
| 19,976,567
|
Federal National Mortgage Association, 1.11%**, 4/14/2004
| 20,000,000
| 19,954,983
|
Federal National Mortgage Association, 1.45%, 9/14/2004
| 5,000,000
| 5,000,000
|
Federal National Mortgage Association, 1.5%, 11/16/2004
| 15,000,000
| 15,000,000
|
Federal National Mortgage Association, 1.55%, 12/6/2004
| 10,000,000
| 10,000,000
|
Federal National Mortgage Association, 1.6%, 12/29/2004
| 10,000,000
| 10,000,000
|
Federal National Mortgage Association, 3.625%, 4/15/2004
| 10,000,000
| 10,050,275
|
Federal National Mortgage Association, 5.125%, 2/13/2004
| 10,225,000
| 10,238,107
|
Total Agencies Not Backed by the Full Faith and Credit of the US Government (Cost $317,251,576)
| 317,251,576 |
|
Agencies Backed by the Full Faith and Credit of the US Government 7.6% |
Hainan Airlines, Series 2000-2, 1.07%*, 12/21/2004
| 8,213,588
| 8,213,588
|
Hainan Airlines, Series 2000-1, 1.095%*, 6/21/2004
| 7,079,568
| 7,079,569
|
Hainan Airlines, Series 2001-1, 1.17%*, 12/15/2007
| 8,716,340
| 8,716,340
|
Hainan Airlines, Series 2001-2, 1.17%*, 12/15/2007
| 4,358,170
| 4,358,170
|
Hainan Airlines, Series 2001-3, 1.17%*, 12/15/2007
| 4,358,170
| 4,358,170
|
Total Agencies Backed by the Full Faith and Credit of the US Government (Cost $32,725,837)
| 32,725,837 |
Repurchase Agreements 18.6% |
Citigroup Global Markets, 1.03%, dated 1/30/2004, to be repurchased at $39,003,347 on 2/2/2004 (b)
| 39,000,000
| 39,000,000
|
Merrill Lynch, 1.08%, dated 1/30/2004, to be repurchased at $38,003,420 on 2/2/2004 (c)
| 38,000,000
| 38,000,000
|
State Street Bank and Trust Co., 0.94%, dated 1/30/2004, to be repurchased at $2,748,215 on 2/2/2004 (d)
| 2,748,000
| 2,748,000
|
Total Repurchase Agreements (Cost $79,748,000)
| 79,748,000 |
Total Investment Portfolio - 100.0% (Cost $429,725,413) (a)
| 429,725,413 |
* 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 January 31, 2004.** Annualized yield at the time of purchase; not a coupon rate.(a) The cost for federal income tax purposes was $429,725,413.(b) Collateralized by $32,438,000 of Federal National Mortgage Association securities, 7.25%, maturing on 5/15/2030 with a value of $40,561,032.(c) Collateralized by $38,840,000 of US Treasury Bills, maturing on 4/15/2004 with a value of $38,762,710.(d) Collateralized by $2,810,000 of Federal Home Loan Bank securities, maturing on 4/30/2004 with a value of $2,802,975.The accompanying notes are an integral part of the financial statements.
Scudder Tax-Exempt Money Fund
| Principal Amount ($) | Value ($) |
|
|
Municipal Investments 100.0% |
Alaska 2.0%
|
Alaska, General Obligation, Series 1825, 1.0%*, 2/1/2011 (b)
| 11,915,000
| 11,915,000 |
California 3.5%
|
California, Department Water Resolution Power Supply Revenue, Series C-1, 0.94%*, 5/1/2022 (c)
| 2,000,000
| 2,000,000
|
California, Housing Finance Agency Revenue, Floater-PT-843, 1.09%*, 11/1/2005
| 2,045,000
| 2,045,000
|
California, State GO:
|
|
|
Series C-1, 0.95%*, 5/1/2033 (c) | 400,000
| 400,000
|
Series C-4, 0.95%*, 5/1/2033 (c) | 2,500,000
| 2,500,000
|
Series-819-D, 1.05%*, 2/1/2028 (b) | 7,491,500
| 7,491,500
|
California, State GO, Revenue Anticipation Notes, Series A-3, 2.0%, 6/23/2004 (c)
| 5,000,000
| 5,018,099
|
Los Angeles, CA, Regional Airports Improvement Corp., Los Angeles International Airport, AMT, 1.03%*, 12/1/2025 (c)
| 1,050,000
| 1,050,000
|
Los Angeles, CA, Water & Power Revenue, Power System, Series A-2, 0.9%*, 7/1/2035
| 500,000
| 500,000
|
| 21,004,599 |
Colorado 1.2%
|
Colorado, Educational & Cultural Facilities Authority Revenue, Vail Mountain School Project, 1.02%*,
5/1/2033 (c)
| 3,200,000
| 3,200,000
|
Colorado, Health Facilities Authority Revenue, Frasier Meadows Manor Project, 0.98%*, 6/1/2021 (c)
| 4,015,000
| 4,015,000
|
| 7,215,000 |
District of Columbia 1.0%
|
District of Columbia, General Obligation:
|
|
|
Series B, 0.96%*, 6/1/2030 (b) | 500,000
| 500,000
|
Series D, 0.97%*, 6/1/2029 (b) | 770,000
| 770,000
|
District of Columbia, General Obligation, Multimodal-Medlantic, Series A, 0.96%*, 6/1/2015 (b)
| 4,500,000
| 4,500,000
|
| 5,770,000 |
Florida 6.1%
|
Broward County, School Board Certificates of Participation, 1.02%*, 7/1/2019 (b)
| 4,315,000
| 4,315,000
|
Capital Trust Agency Revenue, Seminole Tribe Resort, Series B, 0.97%*, 10/1/2033 (c)
| 4,305,000
| 4,305,000
|
Collier County, Hospital & Healthcare Revenue, Cleveland Health Clinic, Series C-1, 1.0%*, 1/1/2035 (c)
| 575,000
| 575,000
|
Florida, University Athletic Association, Inc., Capital Improvement Revenue, University of Florida Stadium Project, 1.03%*, 2/1/2020 (c)
| 125,000
| 125,000
|
Highlands County, FL, Health Facilities Authority Revenue, Adventist Health, Series A, 0.95%*, 11/15/2032 (c)
| 2,050,000
| 2,050,000
|
Jacksonville, FL, Electric Authority Revenue, Electric Systems:
|
|
|
Series B, 1.0%*, 10/1/2030 | 3,560,000
| 3,560,000
|
Series C, 1.05%*, 10/1/2030 | 1,000,000
| 1,000,000
|
Miami-Dade County, FL, Industrial Development Authority Revenue, Gulliver Schools Project, 1.0%*, 9/1/2029 (c)
| 3,150,000
| 3,150,000
|
Orange County, FL, Health Facilities Authority Revenue, Presbyterian Retirement Project, 1.0%*, 11/1/2028 (c)
| 10,315,000
| 10,315,000
|
Orange County, FL, Housing Finance Authority, Multi-Family Revenue, Falcon Trace Apartments Project, Series D, AMT, 0.97%*, 10/1/2032 (b)
| 2,050,000
| 2,050,000
|
Palm Beach County, Water & Sewer Revenue, 2.0%, 10/1/2004
| 1,400,000
| 1,408,757
|
Sarasota County, FL, Health Facilities Authority Revenue, Healthcare Facilities, Bay Village Project, 1.0%*,
12/1/2023 (c)
| 3,350,000
| 3,350,000
|
| 36,203,757 |
Georgia 5.3%
|
Atlanta, GA, Airport Revenue, Series C-1, 0.95%*,
1/1/2030 (b)
| 4,000,000
| 4,000,000
|
Burke County, Development Authority Pollution Control Revenue, Oglethorpe Power Corp. Project, Series C, 0.99%*, 1/1/2018 (b)
| 2,070,000
| 2,070,000
|
De Kalb County, GA, Housing Authority, Multi-Family Housing Revenue, Clairmont Crest Project, 0.97%*, 6/15/2025 (b)
| 1,100,000
| 1,100,000
|
Gainsville, GA, Redevelopment Authority, Educational Facilities Revenue, Riverside Military Project, 0.96%*, 7/1/2024 (c)
| 4,965,000
| 4,965,000
|
Georgia, Municipal Electric Authority, Series 1985-A, 0.98%, 2/11/2004
| 10,000,000
| 10,000,000
|
Rockdale County, Hospital Authority Revenue, Anticipate Certificate, 0.95%*, 10/1/2027 (c)
| 2,000,000
| 2,000,000
|
Willacoochie, GA, Development Authority, Pollution Control Revenue, Langboard, Inc. Project, AMT, 1.05%*,
5/1/2021 (c)
| 7,000,000
| 7,000,000
|
| 31,135,000 |
Idaho 0.3%
|
Power County, Industrial Development Authority, FMC Corp. Project, AMT, 1.06%*, 4/1/2014 (c)
| 2,000,000
| 2,000,000 |
Illinois 14.9%
|
Chicago, IL, General Obligation, Series B, 0.95%*,
1/1/2037 (b)
| 6,000,000
| 6,000,000
|
Chicago, IL, Industrial Development Revenue, Milex Products, Inc. Project, AMT, 1.17%*, 8/1/2012 (c)
| 2,445,000
| 2,445,000
|
Chicago, IL, Revenue Bonds, De La Salle Institution Project, 1.04%*, 4/1/2027 (c)
| 2,765,000
| 2,765,000
|
Chicago, IL, Revenue Bonds, Homestart Program, Series A, 1.04%*, 6/1/2005 (c)
| 3,510,000
| 3,510,000
|
Chicago, IL, Sales Tax Revenue, 0.97%*, 1/1/2034 (b)
| 9,200,000
| 9,200,000
|
Cicero, Il, Industrial Development Revenue, Harris Steel Co. Project, AMT, 1.17%*, 5/1/2011 (c)
| 1,930,000
| 1,930,000
|
Cook County, Industrial Development Revenue, 128th Place Limited Partnership, AMT, 1.02%*, 7/1/2020 (c)
| 2,550,000
| 2,550,000
|
Franklin Park, IL, Industrial Development Revenue, MaClean Fogg Co. Project, AMT, 1.1%*, 2/1/2007 (c)
| 5,000,000
| 5,000,000
|
Hillside, IL, Economic Development Revenue, L&J Technologies Project, AMT, 1.1%*, 7/1/2024 (c)
| 4,620,000
| 4,620,000
|
Illinois, Development Finance Authority Revenue, Chicago Symphony Orchestra, 0.95%*, 12/1/2028 (c)
| 2,200,000
| 2,200,000
|
Illinois, Development Finance Authority Revenue, Museum Contemporary Art Project, 0.98%*, 2/1/2029 (c)
| 4,000,000
| 4,000,000
|
Illinois, Development Finance Authority, Industrial Development Revenue, Tripp Partners Project, AMT, 1.4%*, 2/1/2013 (c)
| 3,355,000
| 3,355,000
|
Illinois, Development Finance Authority, Industrial Project Revenue, Grecian Delight Foods Project, AMT, 1.02%*, 8/1/2019 (c)
| 5,900,000
| 5,900,000
|
Illinois, General Obligation, Regional Transportation Authority, Merlots, Series A-24, 1.03%*, 7/1/2032 (b)
| 2,175,000
| 2,175,000
|
Illinois, General Obligation, Series 1750, 1.0%*, 12/1/2010 (b)
| 5,370,000
| 5,370,000
|
Illinois, General Obligation, Star Certificates, Series 03-20, 1.17%*, 11/1/2019 (b)
| 5,745,000
| 5,745,000
|
Illinois, Health Facilities Authority Revenue, The Carle Foundation, Series B, 0.97%*, 7/1/2028 (b)
| 5,200,000
| 5,200,000
|
Illinois, Development Finance Authority Revenue, Jewish Federation Projects, 0.97%*, 9/1/2024 (b)
| 3,975,000
| 3,975,000
|
Illinois, Regional Transit Authority, 1.05%, 2/3/2004
| 2,000,000
| 2,000,000
|
Mundelein, IL, Industrial Development Revenue, MaClean Fogg Co. Project, AMT, 1.1%*, 1/1/2015 (c)
| 6,500,000
| 6,500,000
|
Woodridge, IL, Du Page Will & Cook Counties, Industrial Development Revenue, Morey Realty Group, Inc. Project, 1.17%*, 12/1/2016 (c)
| 4,140,000
| 4,140,000
|
| 88,580,000 |
Indiana 0.8%
|
Indiana, Development Finance Authority, Industrial Development Revenue, Enterprise Center III Project, AMT, 1.02%*, 6/1/2022 (c)
| 4,500,000
| 4,500,000 |
Iowa 1.1%
|
Iowa, School Cash Anticipation Program, Warrant Certificates, Series B, 2.0%, 1/28/2005 (b)
| 6,500,000
| 6,562,316 |
Kentucky 3.6%
|
Boone County, Pollution Control Revenue, Cincinnati Gas & Electric Co., Series A, 1.1%*, 8/1/2013 (c)
| 4,400,000
| 4,400,000
|
Breckinridge County, Lease Program Revenue, Kentucky Association Counties Leasing Trust, Series A, 1.0%*, 2/1/2032 (c)
| 1,800,000
| 1,800,000
|
Jeffersontown, KY, Lease Program Revenue, Kentucky League of Cities Funding Trust, 1.0%*, 3/1/2030 (c)
| 4,825,000
| 4,825,000
|
Pendleton County, Multi-County Lease Revenue, Kentucky Associate County Leasing Program, 1.04%*, 5/14/2004 (c)
| 10,000,000
| 10,000,000
|
| 21,025,000 |
Michigan 7.2%
|
ABN AMRO Munitops Certificates Trust, Series 2003-3, 0.99%*, 1/1/2011 (b)
| 15,900,000
| 15,900,000
|
Jackson County, Economic Development Corp. Revenue, Spring Arbor College Project, 1.0%*, 12/1/2020 (c)
| 4,810,000
| 4,810,000
|
Jackson, MI, Public Schools, State Aid Anticipation Notes, 2.0%, 5/21/2004 (c)
| 1,800,000
| 1,805,265
|
Lakeview, MI, Public School District, 4.0%, 5/1/2004 (b)
| 350,000
| 352,630
|
Michigan, Housing Development Authority, Multi-Family Revenue, River Place Apartments, AMT, 1.01%*,
6/1/2018 (c)
| 2,925,000
| 2,925,000
|
Michigan, Municipal Bond Authority Revenue, Series B-2, 2.0%, 8/23/2004 (c)
| 13,360,000
| 13,431,097
|
Michigan, Municipal Securities Trust Certificates, Series 9054, 1.02%*, 4/20/2011 (b)
| 3,050,000
| 3,050,000
|
Strategic Fund, Limited Obligation Revenue, Continental Aluminum Project, AMT, 1.15%*, 10/1/2015
| 290,000
| 290,000
|
| 42,563,992 |
Missouri 0.8%
|
St. Louis, Development Finance Board, Air Cargo Facilities Revenue, AMT, 1.04%*, 3/1/2030 (c)
| 5,000,000
| 5,000,000 |
Nevada 2.1%
|
City of Phoenix, 1.06%, 3/11/2004
| 2,000,000
| 2,000,000
|
Las Vegas Valley, Water District, Series B-10, 1.03%*,
6/1/2024 (b)
| 5,995,000
| 5,995,000
|
Nevada, Department of Community Industrial Development Revenue, Dura-Bond Project, Series A, AMT, 1.15%*, 1/1/2009 (c)
| 4,400,000
| 4,400,000
|
| 12,395,000 |
New Hampshire 0.5%
|
New Hampshire, Health & Education Authority Hospital Revenue, Series 1830, 1.05%*, 10/1/2021
| 3,035,000
| 3,035,000 |
New Jersey 0.2%
|
Atlantic County, NJ, Import Authority Revenue, Pooled Program, 0.95%*, 7/1/2026 (c)
| 1,000,000
| 1,000,000 |
New York 3.8%
|
City of Rochester, 0.97%, 5/13/2004
| 3,000,000
| 3,000,000
|
Hempstead, NY, Industrial Development Agency, Industrial Development Revenue, Trigen-Nassua Energy Corp., 0.95%*, 9/15/2015 (c)
| 305,000
| 305,000
|
New York, General Highway & Bridge Trust Fund, Star Certificates, Series 2003-4, 0.97%*, 4/1/2011 (b)
| 3,000,000
| 3,000,000
|
New York City, NY, Transitional Finance Authority, Bond Anticipation Notes, Series 2, 2.0%, 2/19/2004
| 6,500,000
| 6,502,851
|
New York, NY, General Obligation, Series A-5, 1.0%*, 8/1/2031 (c)
| 2,000,000
| 2,000,000
|
New York, NY, State GO, Revenue Anticipation Notes, Series A, 2.0%, 4/15/2004
| 7,500,000
| 7,515,979
|
New York, NY, Transitional Finance Authority, Star Certificate, Series 2003-7, 0.99%*, 2/1/2009
| 100,000
| 100,000
|
| 22,423,830 |
Ohio 4.7%
|
Athens County, OH, Port Authority, Housing Revenue, University Housing for Ohio, Inc. Project, 0.99%*,
6/1/2032 (c)
| 5,900,000
| 5,900,000
|
Cuyahoga, OH, Community College District, General Receipts, Series B, 1.0%*, 12/1/2032 (b)
| 4,000,000
| 4,000,000
|
Hunron County, Ohio, Hospital Facilities Revenue, Fisher-Titus Medical Center, Series A, 0.95%*, 12/1/2027 (c)
| 6,000,000
| 6,000,000
|
Lorain, OH, Port Authority Revenue, Port Development, Spitzer Project, AMT, 1.17%*, 12/1/2019 (c)
| 2,975,000
| 2,975,000
|
Ohio, Higher Educational Facilities Community Revenue, Pooled Program, Series A, 1.05%*, 9/1/2020 (c)
| 6,560,000
| 6,560,000
|
Ohio, University of Toledo, General Receipts Bonds, 0.98%*, 6/1/2032 (b)
| 295,000
| 295,000
|
Portage County, OH, Industrial Development Revenue, Allen Aircraft Products Project, AMT, 1.14%*, 7/1/2018 (c)
| 1,910,000
| 1,910,000
|
| 27,640,000 |
Oklahoma 1.2%
|
Blaine County, OK, Industrial Development Authority, Industrial Redevelopment, Seaboard Project, AMT, 1.05%*, 11/1/2018 (c)
| 1,500,000
| 1,500,000
|
Payne County, Economic Development Authority, Student Housing Revenue, OSUF Phase III Project, 0.98%*,
7/1/2032 (b)
| 5,340,000
| 5,340,000
|
| 6,840,000 |
Oregon 1.1%
|
Hermiston, OR, Electric System Revenue, Private Activities, Series A, 1.1%, 10/1/2032 (c)
| 6,495,000
| 6,495,000 |
Pennsylvania 8.0%
|
Allentown, PA, Area Hospital Authority Revenue, Sacred Heart Hospital, Series B, 0.95%*, 7/1/2023 (c)
| 6,320,000
| 6,320,000
|
Bucks County, PA, Tax & Revenue Anticipation Notes, Series A, 2.0%, 12/31/2004
| 12,500,000
| 12,598,296
|
Dauphin County, OA, General Authority, Education & Health Loan Program, 1.0%*, 11/1/2017 (b)
| 5,505,000
| 5,505,000
|
Delaware County, PA, Industrial Development Authority, Pollution Control Revenue, BP Exploration & Oil, 1.0%*, 10/1/2019 (b)
| 300,000
| 300,000
|
Delaware Valley, PA, Regional Finance Authority, Local Government Revenue, 0.95%*, 8/1/2016 (c)
| 1,100,000
| 1,100,000
|
Manheim Township, School District, 1.0%*, 6/1/2016 (b)
| 3,600,000
| 3,600,000
|
Pennsylvania, Economic Development Finance Authority, Exempt Facilities Revenue, Amtrak Project, Series B, 1.0%*, 11/1/2041 (c)
| 900,000
| 900,000
|
Pennsylvania, Economic Development Finance Authority, Exempt Facilities Revenue, Reliant Energy Seward Project, Series A, AMT, 1.0%*, 12/1/2036 (c)
| 11,000,000
| 11,000,000
|
Pennsylvania, General Obligation, Merlots, Series A-15, 1.03%*, 1/1/2017 (b)
| 3,770,000
| 3,770,000
|
Pennsylvania, Higher Education Assistance Agency, Student Loan Revenue, Series A, AMT, 0.99%*, 3/1/2027 (b)
| 1,000,000
| 1,000,000
|
Pennsylvania, State Higher Education Facilities Authority Revenue, Modal-Drexel University, Series B, 0.95%*, 5/1/2033 (c)
| 225,000
| 225,000
|
Philadelphia, PA, Hospital & Higher Education Facilities Authority Revenue, Children's Hospital Project, Series B, 1.0%*, 7/1/2025
| 1,100,000
| 1,100,000
|
| 47,418,296 |
South Carolina 3.2%
|
South Carolina, Public Service Authority, 1.0%, 6/8/2004
| 18,538,000
| 18,538,000 |
Tennessee 3.1%
|
Clarksville, TN, Public Building Authority Revenue, 1.0%*, 7/1/2031 (c)
| 2,495,000
| 2,495,000
|
Montgomery County, Public Building Authority Pooled Financing Revenue, Tennessee County Pool Program, 1.0%*, 4/1/2032 (c)
| 2,400,000
| 2,400,000
|
Shelby County, TN, Health Educational Authority, 0.96%, 2/23/2004
| 10,000,000
| 10,000,000
|
Shelby County, TN, State GO, Tax Anticipation Notes, 2.0%, 6/30/2004
| 3,400,000
| 3,414,480
|
| 18,309,480 |
Texas 17.5%
|
Austin, TX, Electric Utility Systems Revenue:
|
|
|
Series R-1057, 1.02%*, 11/15/2021 (b) | 4,815,000
| 4,815,000
|
Series 2003-A, 1.02%*, 11/15/2028 (b) | 3,200,000
| 3,200,000
|
Austin, TX, Water & Waste, Water Systems Revenue, Series B-27, 1.03%*, 11/15/2026 (b)
| 5,265,000
| 5,265,000
|
Brazos River, TX, Pollution Control Revenue, Series D-1, AMT, 1.06%*, 5/1/2033 (c)
| 2,500,000
| 2,500,000
|
City of Houston, 1.0%, 6/8/2004
| 3,000,000
| 3,000,000
|
Gulf Coast, Waste Disposal Authority, Environmental Facilities Revenue, Waster Corp. Texas Project, AMT, 1.0%*,
9/1/2022 (c)
| 3,220,000
| 3,220,000
|
Harris County, TX, Health Facilities Development Corp. Revenue, Methodist Hospital, 1.0%*, 12/1/2032
| 3,980,000
| 3,980,000
|
Houston, TX, Airport System Revenue, Series SG 161, 1.02%*, 7/1/2032 (b)
| 9,235,000
| 9,235,000
|
Houston, TX, General Obligation, Series 781, 1.0%*,
3/1/2009 (b)
| 4,000,000
| 4,000,000
|
Houston, TX, Tax & Revenue Anticipation Notes, 1.5%, 6/30/2004
| 8,000,000
| 8,017,681
|
Houston, TX, Water & Sewer Systems, Series A, 0.98%, 5/25/2004
| 10,000,000
| 10,000,000
|
Houston, TX, Water & Sewer System Revenue, Series SG 120, 1.0%*, 12/1/2023
| 2,000,000
| 2,000,000
|
San Antonio, TX, Electric & Gas, Series A, 0.95%, 3/3/2004
| 6,900,000
| 6,900,000
|
San Antonio, TX, Electric & Gas Revenue, Series 1700, 1.01%*, 2/1/2010
| 6,605,000
| 6,605,000
|
Texas, State General Obligation, Tax & Revenue Anticipation Notes, 2.0%, 8/31/2004
| 26,000,000
| 26,133,083
|
University of Texas, University Revenue, Series B-14, 1.01%*, 8/15/2022
| 4,600,000
| 4,600,000
|
| 103,470,764 |
Utah 2.3%
|
Alpine, UT, School District, Series 436, 1.0%, 3/15/2009 (b)
| 9,100,000
| 9,100,000
|
Murray City, UT, Hospital Revenue, IHC Health Services, Inc., Series D, 1.02%*, 5/15/2036
| 1,800,000
| 1,800,000
|
Utah, Housing Finance Agency, Single Family Mortgage, Series E-1, AMT, 1.01%*, 7/1/2031
| 2,475,000
| 2,475,000
|
| 13,375,000 |
Vermont 1.0%
|
Vermont, Student Assistance Corp., Student Loan Revenue, 1.15%*, 1/1/2008 (c)
| 5,800,000
| 5,800,000 |
Washington 3.2%
|
Grant County, Public Utilities District Number 002, Electric Revenue, Series 780, 1.0%*, 1/1/2010 (b)
| 6,125,000
| 6,125,000
|
Tacoma, WA, 0.97%, 3/16/2004
| 7,000,000
| 7,000,000
|
Washington, General Obligation, Series A-11, 1.03%*, 6/1/2017 (b)
| 5,760,000
| 5,760,000
|
| 18,885,000 |
Wisconsin 0.3%
|
Manitowoc, WI, Industrial Development Revenue, Kaysun Corp. Project, AMT, 1.17%*, 5/1/2015 (c)
| 2,020,000
| 2,020,000 |
Total Investment Portfolio - 100.0% (Cost $591,120,034) (a)
| 591,120,034 |
* 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 rates as of January 31, 2004.(a) The cost for federal income tax purposes was $591,120,034.(b) Bond is insured by one of these companies: | As a % of Total Investment Portfolio |
MBIA
| Municipal Bond Investors Assurance
| 10.2
|
FSA
| Financial Security Assurance
| 8.8
|
AMBAC
| AMBAC Assurance Corp.
| 5.5
|
FGIC
| Financial Guaranty Insurance Company
| 3.7
|
| Capital Guaranty
| 2.2
|
FNMA
| Federal National Mortgage Association
| 0.5
|
(c) Security incorporates a letter of credit or line of credit from a major bank.AMT: Subject to alternate minimum tax.The accompanying notes are an integral part of the financial statements.
Statements of Assets and Liabilities as of January 31, 2004 (Unaudited) |
Assets
| Money Market Fund | Government Money Fund | Tax-Exempt Money Fund |
Investments:
Investments in securities, at amortized cost
| $ 3,377,652,934 | $ 349,977,413 | $ 591,120,034 |
Repurchase agreements
| 287,943,000 | 79,748,000 | - |
Total investments in securities, at amortized cost
| 3,665,595,934 | 429,725,413 | 591,120,034 |
Cash
| 49 | 297 | - |
Receivable for investments sold
| - | - | 365,000 |
Interest receivable
| 5,259,822 | 787,061 | 1,420,809 |
Receivable for Fund shares sold
| 17,442,120 | 422,474 | 2,388,154 |
Other assets
| 103,664 | 14,608 | - |
Total assets
| 3,688,401,589 | 430,949,853 | 595,293,997 |
Liabilities
|
Payable for investments purchased
| - | - | 363,766 |
Due to custodian bank
| - | - | 1,302,406 |
Dividends payable
| 848,876 | 98,654 | 79,910 |
Payable for Fund shares redeemed
| 1,966,660 | 275,846 | - |
Accrued management fee
| 814,397 | 94,354 | 130,027 |
Other accrued expenses and payables
| 1,757,510 | 210,504 | 221,930 |
Total liabilities
| 5,387,443 | 679,358 | 2,098,039 |
Net assets, at value
| $ 3,683,014,146 | $ 430,270,495 | $ 593,195,958 |
Net Assets
|
Net assets consist of:
Undistributed net investment income
| 381,381 | 12,173 | 44,055 |
Accumulated net realized gain (loss)
| (9,661) | 2,833 | 21,027 |
Paid-in capital
| 3,682,642,426 | 430,255,489 | 593,130,876 |
Net assets, at value
| $ 3,683,014,146 | $ 430,270,495 | $ 593,195,958 |
Shares outstanding
| 3,682,385,152 | 430,234,213 | 593,131,283 |
Net asset value, offering and redemption price per share (Net asset value / outstanding shares of beneficial interest, no par value, unlimited number of shares authorized)
| $ 1.00 | $ 1.00 | $ 1.00 |
The accompanying notes are an integral part of the financial statements.
Statements of Operations for the six months ended January 31, 2004 (Unaudited) |
Investment Income
| Money Market Fund | Government Money Fund | Tax-Exempt Money Fund |
Income:
Interest
| $ 22,652,093 | $ 2,634,804 | $ 3,163,486 |
Expenses:
Management fee
| 5,350,907 | 644,136 | 828,574 |
Services to shareholders
| 2,779,900 | 326,611 | 347,477 |
Custodian fees
| 91,636 | 9,484 | 25,712 |
Auditing
| 18,454 | 15,556 | 18,285 |
Legal
| 21,886 | 9,936 | 5,071 |
Trustees' fees and expenses
| 37,152 | 12,832 | 25,284 |
Reports to shareholders
| 35,350 | 9,760 | 9,303 |
Registration fees
| - | 6,912 | 3,267 |
Other
| 62,307 | 3,835 | 13,385 |
Total expenses, before expense reductions
| 8,397,592 | 1,039,062 | 1,276,358 |
Expense reductions
| (184) | (12) | (45) |
Total expenses, after expense reductions
| 8,397,408 | 1,039,050 | 1,276,313 |
Net investment income
| 14,254,685 | 1,595,754 | 1,887,173 |
Net realized gain (loss) on investment transactions
| 3,142 | 2,833 | - |
Net increase (decrease) in net assets resulting from operations
| $ 14,257,827 | $ 1,598,587 | $ 1,887,173 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets - Money Market Fund |
Increase (Decrease) in Net Assets
| Six Months Ended January 31, 2004 (Unaudited) | Year Ended July 31, 2003 |
Operations:
Net investment income
| $ 14,254,685 | $ 50,240,947 |
Net realized gain (loss) on investment transactions
| 3,142 | 177,732 |
Net increase (decrease) in net assets resulting from operations
| 14,257,827 | 50,418,679 |
Distributions to shareholders from net investment income
| (14,059,522) | (50,390,647) |
Fund share transactions:
Proceeds from shares sold
| 1,532,843,524 | 3,566,239,007 |
Reinvestment of distributions
| 13,316,455 | 49,858,686 |
Cost of shares redeemed
| (1,980,548,196) | (4,477,156,355) |
Net increase (decrease) in net assets from Fund share transactions
| (434,388,217) | (861,058,662) |
Increase (decrease) in net assets
| (434,189,912) | (861,030,630) |
Net assets at beginning of period
| 4,117,204,058 | 4,978,234,688 |
Net assets at end of period (including undistributed net investment income of $381,381 and $186,218, respectively)
| $ 3,683,014,146 | $ 4,117,204,058 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets - Government Money Fund |
Increase (Decrease) in Net Assets
| Six Months Ended January 31, 2004
(Unaudited) | Year Ended July 31, 2003 |
Operations:
Net investment income
| $ 1,595,754 | $ 6,096,807 |
Net realized gain (loss) on investment transactions
| 2,833 | 4,930 |
Net increase (decrease) in net assets resulting from operations
| 1,598,587 | 6,101,737 |
Distributions to shareholders from net investment income
| (1,595,557) | (6,108,703) |
Fund share transactions:
Proceeds from shares sold
| 113,054,625 | 305,490,436 |
Reinvestment of distributions
| 1,491,227 | 6,012,261 |
Cost of shares redeemed
| (187,351,914) | (422,168,524) |
Net increase (decrease) in net assets from Fund share transactions
| (72,806,062) | (110,665,827) |
Increase (decrease) in net assets
| (72,803,032) | (110,672,793) |
Net assets at beginning of period
| 503,073,527 | 613,746,320 |
Net assets at end of period (including undistributed net investment income of $12,173 and $11,976, respectively)
| $ 430,270,495 | $ 503,073,527 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets - Tax-Exempt Money Fund |
Increase (Decrease) in Net Assets
| Six Months Ended January 31, 2004
(Unaudited) | Year Ended July 31, 2003 |
Operations:
Net investment income
| $ 1,887,173 | $ 6,118,208 |
Net realized gain (loss) on investment transactions
| - | 59,235 |
Net increase (decrease) in net assets resulting from operations
| 1,887,173 | 6,177,443 |
Distributions to shareholders from net investment income
| (1,883,318) | (6,118,208) |
Fund share transactions:
Proceeds from shares sold
| 192,945,414 | 452,079,545 |
Reinvestment of distributions
| 1,817,500 | 6,064,025 |
Cost of shares redeemed
| (235,729,625) | (510,966,229) |
Net increase (decrease) in net assets from Fund share transactions
| (40,966,711) | (52,822,659) |
Increase (decrease) in net assets
| (40,962,856) | (52,763,424) |
Net assets at beginning of period
| 634,158,814 | 686,922,238 |
Net assets at end of period (including undistributed net investment income of $44,055 and $40,200, respectively)
| $ 593,195,958 | $ 634,158,814 |
The accompanying notes are an integral part of the financial statements.
Scudder Money Market Fund |
Years Ended July 31, | 2004a | 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
| .003 | .011 | .02 | .05 | .06 | .05 |
Distributions from net investment income
| (.003) | (.011) | (.02) | (.05) | (.06) | (.05) |
Net asset value, end of period
| $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%)
| .35** | 1.11 | 2.01 | 5.54b,c | 5.78 | 4.89 |
Ratios to Average Net Assets and Supplemental Data
|
Net assets, end of period ($ in millions)
| 3,683 | 4,117 | 4,978 | 5,787 | 5,104 | 5,110 |
Ratio of expenses before expense reductions (%)
| .42* | .43 | .44 | .42d | .44 | .46 |
Ratio of expenses after expense reductions (%)
| .42* | .43 | .44 | .41d | .44 | .46 |
Ratio of net investment income (%)
| .72* | 1.12 | 2.01 | 5.38 | 5.61 | 4.78 |
a For the six months ended January 31, 2004 (Unaudited).b Total return for the year ended July 31, 2001 includes the effect of a voluntary capital contribution from the Advisor. Without this contribution, the total return would have been lower.c Total return would have been lower had certain expenses not been reduced.d The ratios of operating expenses excluding costs incurred in connection with a fund complex reorganization before and after expense reductions were 0.41% and 0.41%, respectively.* Annualized** Not annualized |
Scudder Government Money Fund |
Years Ended July 31, | 2004a | 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
| .003 | .011 | .02 | .05 | .05 | .05 |
Distributions from net investment income
| (.003) | (.011) | (.02) | (.05) | (.05) | (.05) |
Net asset value, end of period
| $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%)
| .32** | 1.07 | 1.96 | 5.44b | 5.59 | 4.78 |
Ratios to Average Net Assets and Supplemental Data
|
Net assets, end of period ($ in millions)
| 430 | 503 | 614 | 751 | 668 | 712 |
Ratio of expenses before expense reductions (%)
| .43* | .43 | .43 | .41c | .44 | .43 |
Ratio of expenses after expense reductions (%)
| .43* | .43 | .43 | .40c | .43 | .43 |
Ratio of net investment income (%)
| .67* | 1.09 | 1.98 | 5.27 | 5.43 | 4.67 |
a For the six months ended January 31, 2004 (Unaudited).b Total return would have been lower had certain expenses not been reduced.c The ratios of operating expenses excluding costs incurred in connection with a fund complex reorganization before and after expense reductions were 0.40% and 0.40%, respectively.* Annualized** Not annualized |
Scudder Tax-Exempt Money Fund |
Years Ended July 31, | 2004a | 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
| .003 | .009 | .01 | .03 | .04 | .03 |
Distributions from net investment income
| (.003) | (.009) | (.01) | (.03) | (.04) | (.03) |
Net asset value, end of period
| $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%)
| .31** | .92 | 1.43 | 3.50b | 3.58 | 2.97 |
Ratios to Average Net Assets and Supplemental Data
|
Net assets, end of period ($ in millions)
| 593 | 634 | 687 | 745 | 745 | 796 |
Ratio of expenses before expense reductions (%)
| .41* | .39 | .38 | .36c | .39 | .36 |
Ratio of expenses after expense reductions (%)
| .41* | .39 | .38 | .35c | .39 | .36 |
Ratio of net investment income (%)
| .61* | .92 | 1.43 | 3.44 | 3.51 | 2.93 |
a For the six months ended January 31, 2004 (Unaudited).b Total return would have been lower had certain expenses not been reduced.c The ratios of operating expenses excluding costs incurred in connection with a fund complex reorganization before and after expense reductions were 0.35% and 0.35%, respectively.* Annualized** Not annualizedNotes to Financial Statements (Unaudited) |
|
A. Significant Accounting Policies
Scudder Money Funds (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end, diversified management investment company organized as a Massachusetts business trust. The Trust offers three investment funds (the "Funds"). Each Fund takes its own approach to money market investing. Scudder Money Market Fund emphasizes yield through a more diverse universe of investments, while Scudder Government Money Fund emphasizes government securities. Scudder Tax-Exempt Money Fund invests for income that is free from federal income taxes.
The Funds' financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Funds in the preparation of their financial statements.
Security Valuation. Portfolio securities are valued utilizing the amortized cost method permitted in accordance with Rule 2a-7 under the 1940 Act and certain conditions therein. Under this method, which does not take into account unrealized capital gains or losses on securities, an instrument is initially valued at its cost and thereafter assumes a constant accretion/amortization to maturity of any discount or premium.
Repurchase Agreements. Each Fund may enter into repurchase agreements with certain banks and broker/dealers whereby the Fund, through its custodian or sub-custodian bank, receive delivery of the underlying securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the market value is equal to at least the principal amount of the repurchase price plus accrued interest. The custodian or agent 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 Fund has the right to sell the securities and recover any resulting loss from the financial institution. If the financial institution enters into bankruptcy, the Fund's claims on the collateral may be subject to legal proceedings.
Federal Income Taxes. Each Fund's policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable and tax-exempt income to its shareholders. Accordingly, the Funds paid no federal income taxes and no federal income tax provisions were required.
At July 31, 2003, the Scudder Money Market Fund had net tax basis capital loss carryforwards of approximately $13,000 which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or July 31, 2010, the expiration date, whichever occurs first.
Distribution of Income. Net investment income of each Fund is declared as a daily dividend and is distributed to shareholders monthly.
Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Temporary book and tax basis differences will reverse in a subsequent period. There were no significant book-to-tax differences for the Funds.
The tax character of current year distributions will be determined at the end of the current fiscal year.
Expenses. Expenses of the Trust arising in connection with each specific Fund are allocated to that Fund. Other Trust expenses which cannot be directly attributed to a Fund are apportioned among the Funds in the Trust.
Other. Investment transactions are accounted for on trade date. Interest income is recorded on the accrual basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. All discounts and premiums are accreted/amortized for both tax and financial reporting purposes.
B. Related Parties
Management Agreement. Under the Management Agreement, Deutsche Investment Management Americas Inc. ("DeIM" or the "Advisor") directs the investments of the Funds in accordance with their investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Funds. In addition to portfolio management services, the Advisor provides certain administrative services in accordance with the Management Agreement. Each Fund pays a monthly investment management fee of 1/12 of the annual rate of 0.50% of the first $215,000,000 of the Funds' combined average daily net assets, 0.375% of the next $335,000,000 of such net assets, 0.30% of the next $250,000,000 of such net assets and 0.25% of such net assets in excess of $800,000,000, computed and accrued daily and payable monthly. Accordingly, for the six months ended January 31, 2004, the fee pursuant to the Management Agreement was equivalent to an annualized effective rate of the Funds' average daily net assets as follows:
Fund | Total Aggregated | Effective Rate (%) |
Scudder Money Market Fund
| $ 5,350,907 | .27 |
Scudder Government Money Fund
| 644,136 | .27 |
Scudder Tax-Exempt Money Fund
| 828,574 | .27 |
Service Provider Fees.
Scudder Investments Service Company ("SISC"), an affiliate of the Advisor, is the transfer, dividend-paying and shareholder service agent of the Trust. 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 costs and expenses of such delegation are born by SISC, not by the Funds. For the six months ended January 31, 2004, SISC received shareholder service fees as follows:
Fund | Total Aggregated | Unpaid at January 31, 2004 |
Scudder Money Market Fund
| $ 2,067,868 | $ 1,246,722 |
Scudder Government Money Fund
| 269,730 | 144,950 |
Scudder Tax-Exempt Money Fund
| 313,657 | 198,624 |
Trustees' Fees and Expenses. The Trust pays each Trustee not affiliated with the Advisor retainer fees plus specified amounts for attended board and committee meetings.
C. Expense Off-Set Arrangements
Each Fund has entered into arrangements with its custodian and transfer agent whereby credits realized as a result of uninvested cash balances were used to reduce a portion of each Fund's expenses. During the six months ended January 31, 2004, the Funds' custodian and transfer agent fees were reduced as follows:
Fund | Custodian Fee ($) | Transfer Agent Fee ($) |
Scudder Money Market Fund
| 184 | - |
Scudder Government Money Fund
| 12 | - |
Scudder Tax-Exempt Money Fund
| 45 | - |
D. Line of Credit
The Funds and several other affiliated funds (the "Participants") share in a $1.25 billion revolving credit facility administered by J.P. Morgan Chase Bank for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated, based upon net assets, among each of the Participants. Interest is calculated at the Federal Fund Rate plus 0.5 percent. Each Fund may borrow up to a maximum of 33 percent of its net assets under the agreement.
E. Share Transactions
The following tables summarize share and dollar activity in the Funds:
Scudder Money Market Fund
| Six Months Ended
January 31, 2004 | Year Ended
July 31, 2003 |
| Shares | Dollars | Shares | Dollars |
Shares sold
|
| 1,532,843,524 | $ 1,532,843,524 | 3,566,239,007 | $ 3,566,239,007 |
Shares issued to shareholders in reinvestment of distributions
|
| 13,316,455 | $ 13,316,455 | 49,858,686 | $ 49,858,686 |
Shares redeemed
|
| (1,980,765,857) | $ (1,980,548,196) | (4,477,154,706) | $ (4,477,156,355) |
Net increase (decrease) from capital share transactions
|
| | $ (434,388,217) | | $ (861,058,662) |
Scudder Government Money Fund
| Six Months Ended
January 31, 2004 | Year Ended
July 31, 2003 |
| Shares | Dollars | Shares | Dollars |
Shares sold
|
| 113,054,625 | $ 113,054,625 | 305,490,570 | $ 305,490,436 |
Shares issued to shareholders in reinvestment of distributions
|
| 1,491,227 | $ 1,491,227 | 6,012,261 | $ 6,012,261 |
Shares redeemed
|
| (187,370,288) | $ (187,351,914) | (422,168,523) | $ (422,168,524) |
Net increase (decrease) from capital share transactions
|
| | $ (72,806,062) | | $ (110,665,827) |
Scudder Tax-Exempt Money Fund
| Six Months Ended
January 31, 2004 | Year Ended
July 31, 2003 |
| Shares | Dollars | Shares | Dollars |
Shares sold
|
| 192,945,414 | $ 192,945,414 | 452,079,545 | $ 452,079,545 |
Shares issued to shareholders in reinvestment of distributions
|
| 1,817,500 | $ 1,817,500 | 6,064,025 | $ 6,064,025 |
Shares redeemed
|
| (235,729,683) | $ (235,729,625) | (510,966,232) | $ (510,966,229) |
Net increase (decrease) from capital share transactions
|
| | $ (40,966,711) | | $ (52,822,659) |
Account Management Resources |
|
Automated Information Lines | ScudderACCESS (800) 972-3060 Personalized account information, information on other Scudder funds and services via touchtone telephone and for Classes A, B, and C only, the ability to exchange or redeem shares.
|
Web Site | moneyfunds.scudder.com View your account transactions and balances, trade shares, monitor your asset allocation, and change your address, 24 hours a day.
Obtain prospectuses and applications, blank forms, interactive worksheets, news about Scudder funds, subscription to fund updates by e-mail, retirement planning information, and more.
|
For More Information | (800) 621-1048 To speak with a Scudder service representative.
|
Written Correspondence | Scudder Investments PO Box 219356
Kansas City, MO 64121-9356
|
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.
|
Principal Underwriter | If you have questions, comments or complaints, contact:
Scudder Distributors, Inc. 222 South Riverside Plaza
Chicago, IL 60606-5808
(800) 621-1148
|
| Scudder Money Market Fund | Scudder Government Money Fund | Scudder Tax-Exempt Money Fund |
Nasdaq Symbol | KMMXX
| KEGXX
| KXMXX
|
CUSIP Number | 81118M-100
| 81118M-209
| 81118M-308
|
Fund Number | 6
| 11
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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 the Scudder 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:
Scudder Investments
Attention: Correspondence - Chicago
P.O. Box 219415
Kansas City, MO 64121-9415
August 2003
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. [RESERVED]
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The primary function of the Nominating and Governance Committee is to identify
and recommend individuals for membership on the Board and oversee the
administration of the Board Governance Procedures and Guidelines. Shareholders
may recommend candidates for Board positions by forwarding their correspondence
by U.S. mail or courier service to the Fund's Secretary for the attention of the
Chairman of the Nominating and Governance Committee, Two International Place,
Boston, MA 02110. Suggestions for candidates must include a resume of the
candidate.
ITEM 10. 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) During the filing period of the report, management identified a significant
deficiency relating to the overall fund expense payment and accrual process.
Management discussed these matters with the Registrant's Audit Committee and
auditors, instituted additional procedures to enhance its internal controls and
will continue to develop additional controls and redesign work flow to
strengthen the overall control environment associated with the processing and
recording of fund expenses.
ITEM 11. 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: Scudder Money Market Fund
By: /s/Richard T. Hale
---------------------------
Richard T. Hale
Chief Executive Officer
Date: March 29, 2004
---------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
Registrant: Scudder Money Market Fund
By: /s/Richard T. Hale
---------------------------
Richard T. Hale
Chief Executive Officer
Date: March 29, 2004
---------------------------
By: /s/Charles A. Rizzo
---------------------------
Charles A. Rizzo
Chief Financial Officer
Date: March 29, 2004
---------------------------
Form N-CSR Item F
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: Scudder Government Money Fund
By: /s/Richard T. Hale
---------------------------
Richard T. Hale
Chief Executive Officer
Date: March 29, 2004
---------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
Registrant: Scudder Government Money Fund
By: /s/Richard T. Hale
---------------------------
Richard T. Hale
Chief Executive Officer
Date: March 29, 2004
---------------------------
By: /s/Charles A. Rizzo
---------------------------
Charles A. Rizzo
Chief Financial Officer
Date: March 29, 2004
---------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: Scudder Tax-Exempt Money Fund
By: /s/Richard T. Hale
---------------------------
Richard T. Hale
Chief Executive Officer
Date: March 29, 2004
---------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
Registrant: Scudder Tax-Exempt Money Fund
By: /s/Richard T. Hale
---------------------------
Richard T. Hale
Chief Executive Officer
Date: March 29, 2004
---------------------------
By: /s/Charles A. Rizzo
---------------------------
Charles A. Rizzo
Chief Financial Officer
Date: March 29, 2004
---------------------------
