UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number: 811-02527
Deutsche Money Funds
(Exact Name of Registrant as Specified in Charter)
345 Park Avenue
New York, NY 10154-0004
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code: (212) 250-3220
Paul Schubert
345 Park Avenue
New York, NY 10154-0004
(Name and Address of Agent for Service)
| Date of fiscal year end: | 07/31 |
| | |
| Date of reporting period: | 1/31/2018 |
| ITEM 1. | REPORT TO STOCKHOLDERS |
| | |
January 31, 2018
Semiannual Report
to Shareholders
Deutsche Money Market Prime Series
Contents
This report must be preceded or accompanied by a prospectus. To obtain a summary prospectus, if available, or 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 summary prospectus and prospectus contain this and other important information about the Fund. Please read the prospectus carefully before you invest.
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
You should not rely on or expect the Advisor to enter into support agreements or take other actions to maintain the Fund’s $1.00 share price. The credit quality of the Fund’s holdings can change rapidly in certain markets, and the default of a single holding could have an adverse impact on the Fund’s share price. The Fund’s share price can also be negatively affected during periods of high redemption pressures and/or illiquid markets. The actions of a few large investors in one class of shares of the Fund may have a significant adverse effect on the share prices of all classes of shares of the Fund. See the prospectus for specific details regarding the Fund’s risk profile.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or Deutsche Investment Management Americas Inc. and RREEF America L.L.C. which offer advisory services.
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
| | | | |
| 2 | | Deutsche Money Market Prime Series | | |
Letter to Shareholders
Dear Shareholder:
You may have noticed a new logo appearing on the cover of this report. As of March 23, 2018, Deutsche Asset Management has adopted its existing European brand, DWS, globally. As we have consolidated several businesses over the last several years, each of which has grown up relatively independently, the time has now come to be united under a single brand that reflects our global identity and the full breadth of capabilities we offer to our clients.
The DWS brand — Deutsche Gesellschaft für Wertpapiersparen — draws on our roots in the German market, going back over 60 years. It was established in Hamburg in 1956 with a singular objective: to assist private investors in building wealth and managing risk. We have been fulfilling that promise for generations. Today, the DWS name is synonymous with the values that we have continuously lived up to, and those that will remain central to our future success: Excellence, Entrepreneurship, Sustainability and Integrity. It is therefore a name that we are proud to adopt and build upon as our brand here in the Americas.
In connection with this change, our web site has recently been redesigned with a new address: dws.com. However, for your convenience, the deutschefunds.com address will remain live and automatically redirect you to our new site. Please visit us online to find the most current insights from our CIO, economists and investment specialists.
As always, thank you for your ongoing trust in us. We look forward to bringing you the very best in investment insight, strategies and solutions as we march forward gathering our unique qualities and capabilities under one roof, DWS.
Best regards,
| | |
| | | 
Hepsen Uzcan President, Deutsche Funds |
Assumptions, estimates and opinions contained in this document constitute our judgment as of the date of the document and are subject to change without notice. Any projections are based on a number of assumptions as to market conditions and there can be no guarantee that any projected results will be achieved. Past performance is not a guarantee of future results.
| | | | | | |
| | Deutsche Money Market Prime Series | | | 3 | |
| | | | | | | | |
| Portfolio Summary | | | (Unaudited) | |
| | |
| Asset Allocation (As a % of Investment Portfolio) | | 1/31/18 | | | 7/31/17 | |
| Commercial Paper | | | 64% | | | | 68% | |
| Certificates of Deposit and Bank Notes | | | 13% | | | | 9% | |
| Variable Rate Demand Notes | | | 12% | | | | 10% | |
| Time Deposits | | | 5% | | | | 5% | |
| Repurchase Agreements | | | 4% | | | | 4% | |
| Government & Agency Obligations | | | 1% | | | | 3% | |
| Short-Term Notes | | | 1% | | | | 1% | |
| | | | 100% | | | | 100% | |
| | |
| Weighted Average Maturity | | 1/31/18 | | | 7/31/17 | |
Deutsche Money Market Prime Series | | | 23 days | | | | 25 days | |
| iMoneyNet First Tier Retail Money Fund Average* | | | 25 days | | | | 30 days | |
| * | The Fund is compared to its respective iMoneyNet Category: First Tier Retail Money Fund Average — Category includes a widely recognized composite of money market funds that invest in only first tier (highest rating) securities. Portfolio Holdings of First Tier funds include U.S. Treasury, U.S. Other, Repos, Time Deposits, Domestic Bank Obligations, Foreign Bank Obligations, First Tier Commercial Paper, Floating Rate Notes and Asset-Backed Commercial Paper. |
Weighted average maturity, also known as effective maturity, is the weighted average of the maturity date of bonds held by the Fund taking into consideration any available maturity shortening features.
Portfolio holdings and characteristics are subject to change.
For more complete details about the Fund’s holdings, see page 5.
Following the Fund’s fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC on Form N-Q. In addition, each month, information about the Fund and its portfolio holdings is filed with the SEC on Form N-MFP. The SEC delays the public availability of the information filed on Form N-MFP for 60 days after the end of the reporting period included in the filing. These forms will be available on the SEC’s Web site at sec.gov, and they may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the SEC’s Public Reference Room may be obtained by calling (800) SEC-0330. The Fund’s portfolio holdings are also posted on dws.com from time to time. Please see the Fund’s current prospectus for more information.
| | | | |
| 4 | | Deutsche Money Market Prime Series | | |
| | |
| Investment Portfolio | | as of January 31, 2018 (Unaudited) |
| | | | | | | | |
| | | Principal
Amount ($) | | | Value ($) | |
| Certificates of Deposit and Bank Notes 13.5% | |
Bank of Montreal: | |
1-month LIBOR plus 0.200%, 1.754%*, 7/12/2018 | | | 8,000,000 | | | | 8,000,000 | |
1-month LIBOR plus 0.250%, 1.804%*, 1/11/2019 | | | 8,500,000 | | | | 8,500,000 | |
Canadian Imperial Bank of Commerce: | |
1-month LIBOR plus 0.170%, 1.724%*, 7/12/2018 | | | 5,000,000 | | | | 5,000,000 | |
1-month LIBOR plus 0.190%, 1.751%*, 5/22/2018 | | | 8,425,000 | | | | 8,425,000 | |
Citibank NA, 1-month LIBOR plus 0.160%,
1.716%*, 7/18/2018 | | | 8,500,000 | | | | 8,500,000 | |
DZ Bank AG, 1.51%, 4/23/2018 | | | 5,000,000 | | | | 5,000,000 | |
Oversea-Chinese Banking Corp., Ltd., 1-month LIBOR
plus 0.120%, 1.681%*, 2/26/2018 | | | 5,000,000 | | | | 5,000,000 | |
State Street Bank & Trust Co., 1-month LIBOR plus 0.120%,
1.675%*, 5/8/2018 | | | 7,000,000 | | | | 7,000,000 | |
Toronto-Dominion Bank, 1.48%, 3/14/2018 | | | 10,000,000 | | | | 10,000,000 | |
U.S. Bank NA, 1.4%, 3/20/2018 | | | 5,000,000 | | | | 5,000,000 | |
Wells Fargo Bank NA: | |
1-month LIBOR plus 0.160%, 1.728%*, 8/1/2018 | | | 14,500,000 | | | | 14,500,000 | |
1-month LIBOR plus 0.250%, 1.803%*, 1/9/2019 | | | 10,000,000 | | | | 10,000,000 | |
Westpac Banking Corp., 1-month LIBOR plus 0.320%,
1.875%*, 3/8/2018 | | | 8,500,000 | | | | 8,500,000 | |
| |
| Total Certificates of Deposit and Bank Notes (Cost $103,425,000) | | | | 103,425,000 | |
|
| Commercial Paper 63.8% | |
| Issued at Discount** 44.7% | |
Antalis SA: | |
1.815%, 4/3/2018 | | | 6,500,000 | | | | 6,480,285 | |
1.815%, 4/16/2018 | | | 5,150,000 | | | | 5,131,051 | |
Bank Nederlandse Gemeenten NV, 144A, 1.825%, 5/31/2018 | | | 5,000,000 | | | | 4,970,250 | |
Caisse des Depots et Consignations, 144A,
1.724%, 4/5/2018 | | | 10,000,000 | | | | 9,970,250 | |
Chesham Finance Ltd., 144A, 1.49%, 2/7/2018 | | | 15,000,000 | | | | 14,996,325 | |
Coca-Cola Co., 144A, 1.46%, 8/13/2018 | | | 8,000,000 | | | | 7,938,240 | |
Consolidated Edison Co. of New York, Inc., 144A,
1.673%, 2/1/2018 | | | 35,000,000 | | | | 35,000,000 | |
Danske Corp.: | |
144A, 1.764%, 4/4/2018 | | | 2,800,000 | | | | 2,791,609 | |
144A, 1.926%, 4/13/2018 | | | 4,375,000 | | | | 4,358,606 | |
The accompanying notes are an integral part of the financial statements.
| | | | | | |
| | Deutsche Money Market Prime Series | | | 5 | |
| | | | | | | | |
| | | Principal
Amount ($) | | | Value ($) | |
DBS Bank Ltd.: | |
144A, 1.419%, 2/1/2018 | | | 6,500,000 | | | | 6,500,000 | |
144A, 1.521%, 2/13/2018 | | | 2,730,000 | | | | 2,728,635 | |
144A, 1.795%, 3/19/2018 | | | 2,000,000 | | | | 1,995,477 | |
Federation Desjardins du Quebec, 144A, 1.348%, 2/1/2018 | | | 35,400,000 | | | | 35,400,000 | |
ING U.S. Funding LLC, 1.419%, 2/5/2018 | | | 10,412,000 | | | | 10,410,380 | |
Kells Funding LLC: | |
1.43%, 3/2/2018 | | | 15,000,000 | | | | 14,982,962 | |
1.48%, 3/12/2018 | | | 7,000,000 | | | | 6,988,928 | |
Matchpoint Finance PLC, 144A, 1.47%, 2/1/2018 | | | 30,000,000 | | | | 30,000,000 | |
MetLife Short Term Funding LLC: | |
144A, 1.521%, 2/27/2018 | | | 8,000,000 | | | | 7,991,333 | |
144A, 1.521%, 3/7/2018 | | | 11,000,000 | | | | 10,984,417 | |
Natixis, 1.338%, 2/1/2018 | | | 37,000,000 | | | | 37,000,000 | |
Nederlandse Waterschapsbank NV, 144A,
1.419%, 2/27/2018 | | | 7,500,000 | | | | 7,492,417 | |
Nordea Bank AB, 144A, 1.921%, 7/18/2018 | | | 5,000,000 | | | | 4,956,047 | |
NRW.Bank, 144A, 1.419%, 3/5/2018 | | | 7,500,000 | | | | 7,490,667 | |
Ontario Teachers Finance Trust, 144A, 1.48%, 5/1/2018 | | | 7,006,000 | | | | 6,980,712 | |
Southern California Edison Co.: | |
144A, 1.622%, 2/1/2018 | | | 20,000,000 | | | | 20,000,000 | |
144A, 1.653%, 2/2/2018 | | | 16,000,000 | | | | 15,999,276 | |
Starbird Funding Corp., 144A, 1.572%, 3/1/2018 | | | 7,000,000 | | | | 6,991,561 | |
Swedbank AB, 1.937%, 7/26/2018 | | | 5,000,000 | | | | 4,953,576 | |
United Overseas Bank Ltd., 144A, 1.46%, 2/20/2018 | | | 9,837,000 | | | | 9,829,524 | |
| | | | | | | | |
| | | | | | | 341,312,528 | |
|
| Issued at Par 19.1% | |
ASB Finance Ltd., 144A, 1-month LIBOR plus 0.460%,
2.019%*, 2/15/2018 | | | 10,140,000 | | | | 10,140,000 | |
Bank of Nova Scotia, 144A, 3-month LIBOR plus 0.140%,
1.845%*, 4/11/2018 | | | 8,000,000 | | | | 8,000,000 | |
Bedford Row Funding Corp.: | |
144A, 1-month LIBOR plus 0.120%, 1.681%*, 2/21/2018 | | | 5,000,000 | | | | 4,999,972 | |
144A, 1-month LIBOR plus 0.270%, 1.824%*, 4/12/2018 | | | 9,322,000 | | | | 9,322,000 | |
BNZ International Funding Ltd., 144A, 1-month LIBOR
plus 0.180%, 1.733%*, 7/9/2018 | | | 14,500,000 | | | | 14,500,000 | |
Collateralized Commercial Paper II Co., LLC, 144A,
1-month LIBOR plus 0.210%, 1.766%*, 7/18/2018 | | | 5,000,000 | | | | 5,000,000 | |
Crown Point Capital Co., LLC: | |
144A, 1-month LIBOR plus 0.200%, 1.754%*, 4/10/2018 | | | 8,000,000 | | | | 8,000,000 | |
144A, 1-month LIBOR plus 0.300%, 1.861%*, 3/23/2018 | | | 12,500,000 | | | | 12,500,000 | |
HSBC Bank PLC, 144A, 1-month LIBOR plus 0.210%,
1.778%*, 10/29/2018 | | | 12,000,000 | | | | 12,000,000 | |
The accompanying notes are an integral part of the financial statements.
| | | | |
| 6 | | Deutsche Money Market Prime Series | | |
| | | | | | | | |
| | | Principal
Amount ($) | | | Value ($) | |
ING U.S. Funding LLC: | |
1-month LIBOR plus 0.190%, 1.757%*, 8/1/2018 | | | 3,500,000 | | | | 3,500,000 | |
1-month LIBOR plus 0.240%, 1.802%*, 5/4/2018 | | | 8,500,000 | | | | 8,502,411 | |
Massachusetts, Educational Financing Authority, 1.56%, 2/13/2018, LOC: Royal Bank of Canada | | | 2,500,000 | | | | 2,500,000 | |
Old Line Funding LLC, 144A, 1-month LIBOR plus 0.130%,
1.689%*, 5/15/2018 | | | 12,000,000 | | | | 12,000,000 | |
Ontario Teachers Finance Trust, 144A, 1-month LIBOR
plus 0.120%, 1.677%*, 2/5/2018 | | | 7,350,000 | | | | 7,349,992 | |
Oversea-Chinese Banking Corp., Ltd.: | |
144A, 1-month LIBOR plus 0.150%, 1.705%*, 6/7/2018 | | | 8,500,000 | | | | 8,500,000 | |
144A, 1-month LIBOR plus 0.170%, 1.724%*, 2/12/2018 | | | 8,750,000 | | | | 8,750,000 | |
Westpac Banking Corp., 144A, 1-month LIBOR plus 0.230%,
1.784%*, 1/4/2019 | | | 10,000,000 | | | | 10,000,000 | |
| | | | | | | | |
| | | | | | | | 145,564,375 | |
| Total Commercial Paper (Cost $486,876,903) | | | | 486,876,903 | |
|
| Short-Term Notes 1.0% | |
Wal-Mart Stores, Inc., 5.498%*, 6/1/2018 (Cost $7,603,586) | | | 7,500,000 | | | | 7,603,586 | |
|
| Government & Agency Obligation 1.3% | |
| U.S. Government Sponsored Agencies | |
Federal Farm Credit Bank, 1-month LIBOR plus 0.170%,
1.725%*, 3/8/2018 (Cost $9,999,950) | | | 10,000,000 | | | | 9,999,950 | |
|
| Time Deposit 4.8% | |
Credit Agricole SA, 1.32%, 2/1/2018 (Cost $36,788,699) | | | 36,788,699 | | | | 36,788,699 | |
|
| Variable Rate Demand Notes***11.6% | |
Issaquah Gateway SR Development LLC, Sereis A,
1.55%, 2/8/2018 | | | 9,500,000 | | | | 9,500,000 | |
Jets Stadium Development, 144A, 1.57%, 2/7/2018 | | | 22,835,000 | | | | 22,835,000 | |
Nassau, NY, Health Care Corp. Revenue,
1.05%, 2/7/2018, LOC: TD Bank NA | | | 860,000 | | | | 860,000 | |
New Hampshire, State Higher Educational & Health Facilities Authority, Hunt Community, 1.12%, 2/7/2018, LOC: TD Bank NA | | | 1,100,000 | | | | 1,100,000 | |
New York, State Housing Finance Agency Revenue, 455 West 37th Street, Series A, AMT, 1.17%, 2/7/2018, LOC: Landesbank Hessen-Thuringen | | | 6,550,000 | | | | 6,550,000 | |
The accompanying notes are an integral part of the financial statements.
| | | | | | |
| | Deutsche Money Market Prime Series | | | 7 | |
| | | | | | | | |
| | | Principal
Amount ($) | | | Value ($) | |
North Hudson, NJ, Sewerage Authority, Gross Revenue Lease Certificates, Senior Lien, Series C,
1.6%, 2/7/2018, LOC: TD Bank NA | | | 10,075,000 | | | | 10,075,000 | |
University of California, State Revenues, Series Z-1,
1.47%, 2/7/2018 | | | 37,900,000 | | | | 37,900,000 | |
| |
| Total Variable Rate Demand Notes (Cost $88,820,000) | | | | 88,820,000 | |
| | |
| Repurchase Agreements 3.9% | | | | | | | | |
JPMorgan Securities, Inc., 1.925%, dated 4/27/2016, to be repurchased at $31,179,063 on 5/2/2018 (a) (b)
(Cost $30,000,000) | | | 30,000,000 | | | | 30,000,000 | |
| | |
| | | % of Net
Assets | | | Value ($) | |
| Total Investment Portfolio (Cost $763,514,138) | | | 99.9 | | | | 763,514,138 | |
| Other Assets and Liabilities, Net | | | 0.1 | | | | 526,574 | |
| |
| Net Assets | | | 100.0 | | | | 764,040,712 | |
| * | Floating rate security. These securities are shown at their current rate as of January 31, 2018. |
| ** | Annualized yield at time of purchase; not a coupon rate. |
| *** | Variable rate demand notes are securities whose interest rates are reset periodically (usually daily mode or weekly mode) by remarketing agents based on current market levels, and are not directly set as a fixed spread to a reference rate. These securities may be redeemed at par by the holder at any time, and are shown at their current rates as of January 31, 2018. Date shown reflects the earlier of demand date or stated maturity date. |
| | | | | | | | | | | | |
Principal
Amount ($) | | | Security | | Rate (%) | | Maturity
Date | | Collateral
Value ($) | |
| | 390,265 | | | CIT Education Loan Trust | | 1.765 | | 3/25/2042 | | | 368,554 | |
| | 2,125,000 | | | Drive Auto Receivables Trust | | 4.59 | | 1/17/2023 | | | 2,185,126 | |
| | 49,998 | | | LB-UBS Commercial Mortgage Trust | | 6.114 | | 7/15/2040 | | | 50,129 | |
| | 1,684,835 | | | PHEAA Student Loan Trust | | 2.511 | | 11/25/2065 | | | 1,689,706 | |
| | 5,000,000 | | | SLM Private Credit Student Loan Trust | | 1.829 | | 12/16/2041 | | | 4,741,543 | |
| | 22,200,987 | | | SLM Student Loan Trust | | 1.855-2.045 | | 7/26/2021-1/25/2042 | | | 22,135,982 | |
| | Total Collateral Value | | | 31,171,040 | |
The accompanying notes are an integral part of the financial statements.
| | | | |
| 8 | | Deutsche Money Market Prime Series | | |
| (b) | Open maturity repurchase agreement whose interest rate resets periodically and is shown at the current rate as of January 31, 2018. The dated date is the original day the repurchase agreement was entered into, the maturity date represents the next repurchase date. Upon notice, both the Fund and counterparty have the right to terminate the repurchase agreement at any time. |
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.
AMT: Subject to alternative minimum tax.
LIBOR: London Interbank Offered Rate
LOC: Letter of Credit
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Securities held by the Fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
The following is a summary of the inputs used as of January 31, 2018 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
| | | | | | | | | | | | | | | | |
| Assets | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Investments in Securities (c) | | $ | — | | | $ | 733,514,138 | | | $ | — | | | $ | 733,514,138 | |
| Repurchase Agreement | | | — | | | | 30,000,000 | | | | — | | | | 30,000,000 | |
| Total | | $ | — | | | $ | 763,514,138 | | | $ | — | | | $ | 763,514,138 | |
There have been no transfers between fair value measurement levels during the period ended January 31, 2018.
| (c) | See Investment Portfolio for additional detailed categorizations. |
The accompanying notes are an integral part of the financial statements.
| | | | | | |
| | Deutsche Money Market Prime Series | | | 9 | |
Statement of Assets and Liabilities
| | | | |
| As of January 31, 2018 (Unaudited) | | | | |
| |
| Assets | | | | |
| Investments in securities, valued at amortized cost | | $ | 763,514,138 | |
| Cash | | | 62,925 | |
| Receivable for Fund shares sold | | | 1,058,482 | |
| Interest receivable | | | 707,933 | |
| Other assets | | | 46,938 | |
| Total assets | | | 765,390,416 | |
| |
| Liabilities | | | | |
| Payable for Fund shares redeemed | | | 573,157 | |
| Distributions payable | | | 126,142 | |
| Accrued management fee | | | 182,569 | |
| Accrued Trustees’ fees | | | 8,999 | |
| Other accrued expenses and payables | | | 458,837 | |
| Total liabilities | | | 1,349,704 | |
| Net assets, at value | | $ | 764,040,712 | |
| |
| Net Assets Consist of | | | | |
| Undistributed net investment income | | | 42,985 | |
| Accumulated net realized gain (loss) | | | (974 | ) |
| Paid-in capital | | | 763,998,701 | |
| Net assets, at value | | $ | 764,040,712 | |
| |
| Net Asset Value | | | | |
Deutsche Cash Investment Trust Class A | | | | |
Net Asset Value, offering and redemption price per share
($34,975,107 ÷ 34,952,536 shares of beneficial
interest, no par value, unlimited number shares authorized) | | $ | 1.00 | |
Deutsche Cash Investment Trust Class C | | | | |
Net Asset Value, offering and redemption price per share
($23,504,515 ÷ 23,489,273 shares of beneficial
interest, no par value, unlimited number shares authorized) | | $ | 1.00 | |
Deutsche Cash Investment Trust Class S | | | | |
Net Asset Value, offering and redemption price per share
($185,578,416 ÷ 185,458,352 shares of beneficial
interest, no par value, unlimited number shares authorized) | | $ | 1.00 | |
Deutsche Money Market Fund | | | | |
Net Asset Value, offering and redemption price per share
($519,982,674 ÷ 519,646,633 shares of beneficial
interest, no par value, unlimited number shares authorized) | | $ | 1.00 | |
The accompanying notes are an integral part of the financial statements.
| | | | |
| 10 | | Deutsche Money Market Prime Series | | |
Statement of Operations
| | | | |
| For the six months ended January 31, 2018 (Unaudited) | | | | |
| | | | |
|
| Investment Income | |
| Income: | |
| Interest | | $ | 5,512,070 | |
| Expenses: | |
| Management fee | | | 1,131,016 | |
| Administration fee | | | 393,925 | |
| Services to shareholders | | | 549,381 | |
| Distribution and service fees | | | 148,440 | |
| Custodian fee | | | 11,141 | |
| Professional fees | | | 52,640 | |
| Reports to shareholders | | | 62,935 | |
| Registration fees | | | 37,114 | |
| Trustees’ fees and expenses | | | 22,293 | |
| Other | | | 26,790 | |
| Total expenses before expense reductions | | | 2,435,675 | |
| Expense reductions | | | (58,515 | ) |
| Total expenses after expense reductions | | | 2,377,160 | |
| Net investment income | | | 3,134,910 | |
| Net realized gain (loss) from investments | | | (974 | ) |
| Net increase (decrease) in net assets resulting from operations | | $ | 3,133,936 | |
The accompanying notes are an integral part of the financial statements.
| | | | | | |
| | Deutsche Money Market Prime Series | | | 11 | |
Statements of Changes in Net Assets
| | | | | | | | |
| Increase (Decrease) in Net Assets | | Six Months Ended
January 31, 2018
(Unaudited) | | | Year Ended
July 31, 2017 | |
| | | | | | | | |
| Operations: | |
| Net investment income (loss) | | $ | 3,134,910 | | | $ | 3,021,160 | |
| Net realized gain (loss) | | | (974 | ) | | | 11,343 | |
| Net increase (decrease) in net assets resulting from operations | | | 3,133,936 | | | | 3,032,503 | |
| Distributions to shareholders from: | |
| Net investment income: | |
Deutsche Cash Investment Trust Class A | | | (115,722 | ) | | | (152,101 | ) |
Deutsche Cash Investment Trust Class C | | | (2,119 | ) | | | (3,660 | ) |
Deutsche Cash Investment Trust Class S | | | (795,389 | ) | | | (726,476 | ) |
Deutsche Money Market Fund | | | (2,220,406 | ) | | | (2,138,938 | ) |
| Net realized gains: | |
| Total distributions | | | (3,133,636 | ) | | | (3,021,175 | ) |
| Fund share transactions: | |
| Proceeds from shares sold | | | 130,999,259 | | | | 327,085,441 | |
| Reinvestment of distributions | | | 3,034,386 | | | | 2,890,686 | |
| Payments for shares redeemed | | | (197,518,755 | ) | | | (594,138,548 | ) |
| Net increase (decrease) in net assets from Fund share transactions | | | (63,485,110 | ) | | | (264,162,421 | ) |
| Increase (decrease) in net assets | | | (63,484,810 | ) | | | (264,151,093 | ) |
| Net assets at beginning of period | | | 827,525,522 | | | | 1,091,676,615 | |
| Net assets at end of period (including undistributed net investment income of $42,985 and $41,711, respectively) | | $ | 764,040,712 | | | $ | 827,525,522 | |
The accompanying notes are an integral part of the financial statements.
| | | | |
| 12 | | Deutsche Money Market Prime Series | | |
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deutsche Cash Investment Trust Class A | |
| | | Six Months
Ended 1/31/18 | | | Years Ended July 31, | |
| | | (Unaudited) | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | | 2013 | |
| | | | | | |
| Selected Per Share Data | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .003 | | | | .002 | | | | .000 | *** | | | .000 | *** | | | .000 | *** | | | .000 | *** |
Net realized gain (loss) | | | (.000 | )*** | | | .000 | *** | | | (.000 | )*** | | | .000 | *** | | | .000 | *** | | | .000 | *** |
Total from investment operations | | | .003 | | | | .002 | | | | .000 | *** | | | .000 | *** | | | .000 | *** | | | .000 | *** |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (.003 | ) | | | (.002 | ) | | | (.000 | )*** | | | (.000 | )*** | | | (.000 | )*** | | | (.000 | )*** |
| Net asset value, end of period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| Total Return (%) | | | .29 | ** | | | .19 | a | | | .01 | a | | | .01 | a | | | .01 | a | | | .01 | a |
|
| Ratios to Average Net Assets and Supplemental Data | |
| Net assets, end of period ($ millions) | | | 35 | | | | 76 | | | | 110 | | | | 126 | | | | 159 | | | | 211 | |
| Ratio of expenses before expense reductions (%) | | | .82 | * | | | .79 | | | | .81 | | | | .86 | | | | .85 | | | | .86 | |
| Ratio of expenses after expense reductions (%) | | | .82 | * | | | .74 | | | | .44 | | | | .21 | | | | .18 | | | | .26 | |
| Ratio of net investment income (%) | | | .57 | * | | | .20 | | | | .01 | | | | .01 | | | | .01 | | | | .01 | |
| a | Total return would have been lower had certain expenses not been reduced. |
| *** | Amount is less than $.0005. |
| | | | | | |
| | Deutsche Money Market Prime Series | | | 13 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deutsche Cash Investment Trust Class C | |
| | | Six Months
Ended 1/31/18 | | | Years Ended July 31, | |
| | | (Unaudited) | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | | 2013 | |
| | | | | | |
| Selected Per Share Data | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .000 | *** | | | .000 | *** | | | .000 | *** | | | .000 | *** | | | .000 | *** | | | .000 | *** |
Net realized gain (loss) | | | (.000 | )*** | | | .000 | *** | | | (.000 | )*** | | | .000 | *** | | | .000 | *** | | | .000 | *** |
Total from investment operations | | | .000 | *** | | | .000 | *** | | | .000 | *** | | | .000 | *** | | | .000 | *** | | | .000 | *** |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (.000 | )*** | | | (.000 | )*** | | | (.000 | )*** | | | (.000 | )*** | | | (.000 | )*** | | | (.000 | )*** |
| Net asset value, end of period | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | |
| Total Return (%)a | | | .01 | ** | | | .02 | | | | .01 | | | | .01 | | | | .01 | | | | .01 | |
|
| Ratios to Average Net Assets and Supplemental Data | |
| Net assets, end of period ($ millions) | | | 24 | | | | 15 | | | | 28 | | | | 25 | | | | 23 | | | | 30 | |
| Ratio of expenses before expense reductions (%) | | | 1.55 | * | | | 1.52 | | | | 1.47 | | | | 1.52 | | | | 1.50 | | | | 1.53 | |
| Ratio of expenses after expense reductions (%) | | | 1.40 | * | | | .88 | | | | .45 | | | | .21 | | | | .18 | | | | .26 | |
| Ratio of net investment income (%) | | | .02 | * | | | .01 | | | | .01 | | | | .01 | | | | .01 | | | | .01 | |
| a | Total return would have been lower had certain expenses not been reduced. |
| *** | Amount is less than $.0005. |
| | | | |
| 14 | | Deutsche Money Market Prime Series | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deutsche Cash Investment Trust Class S | |
| | | Six Months
Ended 1/31/18 | | | Years Ended July 31, | |
| | | (Unaudited) | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | | 2013 | |
| | | | | | |
| Selected Per Share Data | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | | $1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .004 | | | | .004 | | | | .000 | *** | | | .000 | *** | | | .000 | *** | | | .000 | *** |
Net realized gain (loss) | | | (.000 | )*** | | | .000 | *** | | | (.000 | )*** | | | .000 | *** | | | .000 | *** | | | .000 | *** |
Total from investment operations | | | .004 | | | | .004 | | | | .000 | *** | | | .000 | *** | | | .000 | *** | | | .000 | *** |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (.004 | ) | | | (.004 | ) | | | (.000 | )*** | | | (.000 | )*** | | | (.000 | )*** | | | (.000 | )*** |
| Net asset value, end of period | | | $1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| Total Return (%)a | | | .42 | ** | | | .36 | | | | .02 | | | | .01 | | | | .01 | | | | .01 | |
|
| Ratios to Average Net Assets and Supplemental Data | |
| Net assets, end of period ($ millions) | | | 186 | | | | 193 | | | | 266 | | | | 285 | | | | 331 | | | | 368 | |
| Ratio of expenses before expense reductions (%) | | | .61 | * | | | .60 | | | | .56 | | | | .55 | | | | .54 | | | | .53 | |
| Ratio of expenses after expense reductions (%) | | | .57 | * | | | .57 | | | | .43 | | | | .21 | | | | .18 | | | | .26 | |
| Ratio of net investment income (%) | | | .83 | * | | | .35 | | | | .02 | | | | .01 | | | | .01 | | | | .01 | |
| a | Total return would have been lower had certain expenses not been reduced. |
| *** | Amount is less than $.0005. |
| | | | | | |
| | Deutsche Money Market Prime Series | | | 15 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deutsche Money Market Fund | |
| | |
| | | Six Months
Ended 1/31/18 | | | Years Ended July 31, | |
| | | (Unaudited) | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | | 2013 | |
|
| Selected Per Share Data | |
| Net asset value, beginning of period | | | $1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .004 | | | | .004 | | | | .000 | *** | | | .000 | *** | | | .000 | *** | | | .000 | *** |
Net realized gain (loss) | | | (.000 | )*** | | | .000 | *** | | | (.000 | )*** | | | .000 | *** | | | .000 | *** | | | .000 | *** |
Total from investment operations | | | .004 | | | | .004 | | | | .000 | *** | | | .000 | *** | | | .000 | *** | | | .000 | *** |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (.004 | ) | | | (.004 | ) | | | (.000 | )*** | | | (.000 | )*** | | | (.000 | )*** | | | (.000 | )*** |
| Net asset value, end of period | | | $1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| Total Return (%) | | | .42 | a,** | | | .38 | | | | .05 | a | | | .01 | a | | | .01 | a | | | .01 | a |
|
| Ratios to Average Net Assets and Supplemental Data | |
| Net assets, end of period ($ millions) | | | 520 | | | | 543 | | | | 687 | | | | 797 | | | | 969 | | | | 1,113 | |
| Ratio of expenses before expense reductions (%) | | | .57 | * | | | .55 | | | | .50 | | | | .50 | | | | .48 | | | | .46 | |
| Ratio of expenses after expense reductions (%) | | | .57 | * | | | .55 | | | | .41 | | | | .21 | | | | .18 | | | | .26 | |
| Ratio of net investment income (%) | | | .83 | * | | | .37 | | | | .05 | | | | .01 | | | | .01 | | | | .01 | |
| a | Total return would have been lower had certain expenses not been reduced. |
| *** | Amount is less than $.0005. |
| | | | |
| 16 | | Deutsche Money Market Prime Series | | |
| | |
| Notes to Financial Statements | | (Unaudited) |
A. Organization and Significant Accounting Policies
Deutsche Money Market Prime Series (the “Fund”) is a diversified series of Deutsche Money Funds (the “Trust”), which is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company organized as a Massachusetts business trust. The Fund seeks to qualify as a retail money market fund and may impose liquidity fees on redemptions and/or temporarily suspend (gate) redemptions if the Fund’s liquidity falls below required minimums because of market conditions or other factors.
The Fund offers multiple classes of shares which provide investors with different purchase options: Deutsche Cash Investment Trust Class A shares are not subject to an initial sales charge but are subject to the applicable sales charge if exchanged into Class A shares of another Deutsche Fund. Deutsche Cash Investment Trust Class C shares are not subject to an initial sales charge but are subject to higher ongoing expenses than Deutsche Cash Investment Trust Class A shares and a contingent deferred sales charge payable upon certain redemptions within one year of purchase. Deutsche Money Market Fund and Deutsche Cash Investment Trust Class S shares are not subject to initial or contingent deferred sales charges. Deutsche Cash Investment Trust Class S shares are only available to a limited group of investors.
Investment income, realized gains and losses, and certain fund-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares, except that each class bears certain expenses unique to that class such as distribution and service fees, services to shareholders and certain other class-specific expenses. Differences in class-level expenses may result in payment of different per share dividends by class. All shares of the Fund have equal rights with respect to voting subject to class-specific arrangements.
The Fund’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which require the use of management estimates. Actual results could differ from those estimates. The Fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of U.S. GAAP. The policies described below are followed consistently by the Fund in the preparation of their financial statements.
Security Valuation. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including
| | | | | | |
| | Deutsche Money Market Prime Series | | | 17 | |
quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The Fund values all securities 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 rate to maturity of any discount or premium. Securities held by the Fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
Disclosure about the classification of fair value measurements is included in a table following the Fund’s Investment Portfolio.
Repurchase Agreements. The Fund may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with certain banks and broker/dealers whereby the Fund, through its custodian or a sub-custodian bank, receives delivery of the underlying securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the market value is equal to at least the principal amount of the repurchase price plus accrued interest. The custodian or another designated sub-custodian 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.
As of January 31, 2018, the Fund held repurchase agreements with a gross value of $30,000,000. The value of the related collateral exceeded the value of the repurchase agreements at period end. The detail of the related collateral is included in the footnotes following the Fund’s Investment Portfolio.
Federal Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable income to its shareholders.
| | | | |
| 18 | | Deutsche Money Market Prime Series | | |
The Fund has reviewed the tax positions for the open tax years as of July 31, 2017 and has determined that no provision for income tax and/or uncertain tax provisions is required in the Fund’s financial statements. The Fund’s federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service.
Distribution of Income and Gains. Net investment income of the Fund is declared as a daily dividend and is distributed to shareholders monthly. The Fund may take into account capital gains and losses in its daily dividend declarations. The Fund may also make additional distributions for tax purposes if necessary.
Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Temporary book and tax basis differences will reverse in a subsequent period. There were no significant book-to-tax differences for the Fund.
At January 31, 2018, the aggregated cost of investments for federal income tax purposes was $763,514,138.
The tax character of current year distributions will be determined at the end of the current fiscal year.
Liquidity Fees and Gates. The Fund may impose a liquidity fee on redemptions of up to 2% of the value of shares redeemed and/or temporarily suspend (gate) redemptions for up to 10 business days in any 90 day period in the event that the Fund’s weekly liquid assets fall below designated thresholds. Any liquidity fees imposed are retained by the Fund for the benefit of the remaining shareholders and are recorded as an addition to paid-in-capital. There were no liquidity fees or gates imposed for the period ended January 31, 2018.
Contingencies. In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.
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 Investment Management Agreement with Deutsche Investment Management Americas Inc. (“DIMA” or the “Advisor”), an indirect, wholly owned subsidiary of
| | | | | | |
| | Deutsche Money Market Prime Series | | | 19 | |
Deutsche Bank AG, the Advisor directs the investments of the Fund 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 Fund.
Under the Investment Management Agreement with the Advisor, the Fund pays a monthly management fee based on the Fund’s average daily net assets, computed and accrued daily and payable monthly, at the following annual rates:
| | | | |
| First $215 million of the Fund’s average daily net assets | | | .400% | |
| Next $335 million of such net assets | | | .275% | |
| Next $250 million of such net assets | | | .200% | |
| Next $800 million of such net assets | | | .150% | |
| Next $800 million of such net assets | | | .140% | |
| Next $800 million of such net assets | | | .130% | |
| Over $3.2 billion of such net assets | | | .120% | |
Accordingly, for the six months ended January 31, 2018, the fee pursuant to the Investment Management Agreement was equivalent to an annualized rate (exclusive of any applicable waivers/reimbursements) of 0.29% of the Fund’s average daily net assets.
For the period from August 1, 2017 through November 30, 2018, the Advisor has contractually agreed to waive its fees and/or reimburse certain operating expenses of the Fund to the extent necessary to maintain the total annual operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest) of each class as follows:
| | | | |
| Deutsche Cash Investment Trust Class A | | | .85% | |
| Deutsche Cash Investment Trust Class C | | | 1.60% | |
| Deutsche Cash Investment Trust Class S | | | .57% | |
| Deutsche Money Market Fund | | | .57% | |
In addition, the Advisor has agreed to voluntarily waive additional expenses. This waiver may be changed or terminated at any time without notice. Under this arrangement, the Advisor waived certain expenses on Deutsche Cash Investment Trust Class C shares of the Fund.
For the six months ended January 31, 2018, fees waived and/or expenses reimbursed for each class are as follows:
| | | | |
| Deutsche Cash Investment Trust Class C | | $ | 14,659 | |
| Deutsche Cash Investment Trust Class S | | | 35,441 | |
| Deutsche Money Market Fund | | | 8,415 | |
| | | $ | 58,515 | |
| | | | |
| 20 | | Deutsche Money Market Prime Series | | |
Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays the Advisor an annual fee (“Administration Fee”) of 0.10% of the Fund’s average daily net assets, computed and accrued daily and payable monthly. For the six months ended January 31, 2018, the Administration Fee was $393,925, of which $65,177 is unpaid.
Service Provider Fees. DWS Service Company (“DSC”), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent for the Fund. Pursuant to a sub-transfer agency agreement among DSC and DST Systems, Inc. (“DST”), DSC has delegated certain transfer agent, dividend-paying agent and shareholder service agent functions to DST. DSC compensates DST out of the shareholder servicing fee it receives from the Fund. For the six months ended January 31, 2018, the amounts charged to the Fund by DSC were as follows:
| | | | | | | | |
| Services to Shareholders | | Total
Aggregated | | | Unpaid at
January 31, 2018 | |
| Deutsche Cash Investment Trust Class A | | $ | 16,183 | | | $ | 6,001 | |
| Deutsche Cash Investment Trust Class C | | | 3,792 | | | | 1,712 | |
| Deutsche Cash Investment Trust Class S | | | 119,160 | | | | 43,486 | |
| Deutsche Money Market Fund | | | 234,534 | | | | 85,339 | |
| | | $ | 373,669 | | | $ | 136,538 | |
Distribution and Service Fees. Under the Fund’s Deutsche Cash Investment Trust Class C 12b-1 Plan, DWS Distributors, Inc. (“DDI”), an affiliate of the Advisor, receives a fee (“Distribution Fee”) of 0.75% of average daily net assets of Deutsche Cash Investment Trust Class C shares. In accordance with the Fund’s Underwriting and Distribution Services Agreement, DDI enters into related selling group agreements with various firms at various rates for sales of Deutsche Cash Investment Trust Class C shares. For the six months ended January 31, 2018, the Distribution Fee was as follows:
| | | | | | | | |
| Distribution Fee | | Total
Aggregated | | | Unpaid at
January 31, 2018 | |
| Deutsche Cash Investment Trust Class C | | $ | 73,451 | | | $ | 15,206 | |
In addition, DDI provides information and administrative services for a fee (“Service Fee”) to Deutsche Cash Investment Trust Class A and Deutsche Cash Investment Trust Class C shareholders at an annual rate of up to 0.25% of average daily net assets for each such class. DDI in turn has various agreements with financial services firms that provide these services and pays these fees based upon the assets of shareholder
| | | | | | |
| | Deutsche Money Market Prime Series | | | 21 | |
accounts the firms service. For the six months ended January 31, 2018, the Service Fee was as follows:
| | | | | | | | | | | | |
| Service Fee | | Total
Aggregated | | | Unpaid at
January 31, 2018 | | | Annualized
Effective Rate | |
| Deutsche Cash Investment Trust Class A | | $ | 50,505 | | | $ | 7,536 | | | | 0.25 | % |
| Deutsche Cash Investment Trust Class C | | | 24,484 | | | | 5,069 | | | | 0.25 | % |
| | | $ | 74,989 | | | $ | 12,605 | | | | | |
Contingent Deferred Sales Charge. DDI receives any contingent deferred sales charge (“CDSC”) from Deutsche Cash Investment Trust Class C share redemptions occurring within one year of purchase. There is no such charge upon redemption of any share appreciation or reinvested dividends. The CDSC is 1% of the value of the shares redeemed for Deutsche Cash Investment Trust Class C. For the six months ended January 31, 2018, the CDSC for Deutsche Cash Investment Trust Class C shares aggregated $0. A deferred sales charge of up to 0.85% is assessed on certain redemptions of Deutsche Cash Investment Trust Class A shares. For the six months ended January 31, 2018, DDI received $489 for Class A shares.
Typesetting and Filing Service Fees. Under an agreement with DIMA, DIMA is compensated for providing certain pre-press and regulatory filing services to the Fund. For the six months ended January 31, 2018, the amount charged to the Fund by DIMA included in the Statement of Operations under “Reports to shareholders“ aggregated $8,522, all of which is unpaid.
Trustees’ Fees and Expenses. The Fund paid retainer fees to each Trustee not affiliated with the Advisor, plus specified amounts to the Board Chairperson and Vice Chairperson and to each committee Chairperson.
Transactions with Affiliates. The Fund may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is solely due to having a common investment adviser, common officers, or common trustees. During the six months ended January 31, 2018, the Fund engaged in securities purchases of $10,660,000 and securities sales of $1,350,000 with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act.
C. Line of Credit
The Fund and other affiliated funds (the “Participants”) share in a $400 million revolving credit facility provided by a syndication of banks. The Fund may borrow for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the
| | | | |
| 22 | | Deutsche Money Market Prime Series | | |
untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated based on net assets, among each of the Participants. Interest is calculated at a rate per annum equal to the sum of the Federal Funds Rate plus 1.25 percent plus if the one-month LIBOR exceeds the Federal Funds Rate, the amount of such excess. The Fund may borrow up to a maximum of 33 percent of its net assets under the agreement. The Fund had no outstanding loans at January 31, 2018.
D. Share Transactions
The following table summarizes share and dollar activity in the Fund:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended
January 31, 2018 | | | Year Ended July 31, 2017 | |
| | | | | | Shares | | | Dollars | | | | | | | | | Shares | | | Dollars | | | | |
| | | | | | | | |
| Shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deutsche Cash Investment Trust Class A | | | | | | | 4,101,118 | | | $ | 4,101,118 | | | | | | | | | | | | 60,222,497 | | | $ | 60,222,497 | | | | | |
| Deutsche Cash Investment Trust Class C | | | | | | | 13,244,912 | | | | 13,244,912 | | | | | | | | | | | | 17,139,185 | | | | 17,139,185 | | | | | |
| Deutsche Cash Investment Trust Class S | | | | | | | 29,578,992 | | | | 29,578,992 | | | | | | | | | | | | 57,099,557 | | | | 57,099,557 | | | | | |
| Deutsche Money Market Fund | | | | | | | 84,074,877 | | | | 84,074,877 | | | | | | | | | | | | 192,453,656 | | | | 192,453,656 | | | | | |
| Account Maintenance Fees | | | | | | | — | | | | (640 | ) | | | | | | | | | | | — | | | | 170,546 | | | | | |
| | | | | | | | | | | $ | 130,999,259 | | | | | | | | | | | | | | | $ | 327,085,441 | | | | | |
|
| Shares issued to shareholders in reinvestment of distributions | |
| Deutsche Cash Investment Trust Class A | | | | | | | 110,217 | | | $ | 110,217 | | | | | | | | | | | | 144,357 | | | $ | 144,357 | | | | | |
| Deutsche Cash Investment Trust Class C | | | | | | | 1,780 | | | | 1,780 | | | | | | | | | | | | 3,425 | | | | 3,425 | | | | | |
| Deutsche Cash Investment Trust Class S | | | | | | | 763,820 | | | | 763,820 | | | | | | | | | | | | 690,365 | | | | 690,365 | | | | | |
| Deutsche Money Market Fund | | | | | | | 2,158,569 | | | | 2,158,569 | | | | | | | | | | | | 2,052,539 | | | | 2,052,539 | | | | | |
| | | | | | | | | | | $ | 3,034,386 | | | | | | | | | | | | | | | $ | 2,890,686 | | | | | |
| | | | | | |
| | Deutsche Money Market Prime Series | | | 23 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Six Months Ended
January 31, 2018 | | | Year Ended July 31, 2017 | |
| | | | | | Shares | | | Dollars | | | | | | | | | Shares | | | Dollars | | | | |
| | | | | | | | |
| Shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deutsche Cash Investment Trust Class A | | | | | | | (45,488,462 | ) | | $ | (45,488,462 | ) | | | | | | | | | | | (93,845,432 | ) | | $ | (93,845,432 | ) | | | | |
| Deutsche Cash Investment Trust Class C | | | | | | | (4,798,381 | ) | | | (4,798,381 | ) | | | | | | | | | | | (30,380,827 | ) | | | (30,380,827 | ) | | | | |
| Deutsche Cash Investment Trust Class S | | | | | | | (37,674,882 | ) | | | (37,674,882 | ) | | | | | | | | | | | (131,176,368 | ) | | | (131,176,368 | ) | | | | |
| Deutsche Money Market Fund | | | | | | | (109,557,030 | ) | | | (109,557,030 | ) | | | | | | | | | | | (338,735,921 | ) | | | (338,735,921 | ) | | | | |
| | | | | | | | | | | $ | (197,518,755 | ) | | | | | | | | | | | | | | $ | (594,138,548 | ) | | | | |
|
| Net increase (decrease) | |
| Deutsche Cash Investment Trust Class A | | | | | | | (41,277,127 | ) | | $ | (41,277,127 | ) | | | | | | | | | | | (33,478,578 | ) | | $ | (33,478,578 | ) | | | | |
| Deutsche Cash Investment Trust Class C | | | | | | | 8,448,311 | | | | 8,448,311 | | | | | | | | | | | | (13,238,217 | ) | | | (13,238,217 | ) | | | | |
| Deutsche Cash Investment Trust Class S | | | | | | | (7,332,070 | ) | | | (7,332,070 | ) | | | | | | | | | | | (73,386,446 | ) | | | (73,386,446 | ) | | | | |
| Deutsche Money Market Fund | | | | | | | (23,323,584 | ) | | | (23,323,584 | ) | | | | | | | | | | | (144,229,726 | ) | | | (144,229,726 | ) | | | | |
| Account Maintenance Fees | | | | | | | — | | | | (640 | ) | | | | | | | | | | | — | | | | 170,546 | | | | | |
| | | | | | | | | | | $ | (63,485,110 | ) | | | | | | | | | | | | | | $ | (264,162,421 | ) | | | | |
| | | | |
| 24 | | Deutsche Money Market Prime Series | | |
Information About Your Fund’s Expenses
As an investor, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service (12b-1) fees and other Fund expenses. Examples of transaction costs include account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recent six-month period, the Fund limited these expenses for Deutsche Cash Investment Trust Class C, Deutsche Cash Investment Trust Class S shares and Deutsche Money Market Fund shares; had it not done so, expenses would have been higher. The example in the table is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (August 1, 2017 to January 31, 2018).
The tables illustrate your Fund’s expenses in two ways:
| – | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
| – | Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The “Expenses Paid per $1,000” line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. Subject to certain exceptions, an account maintenance fee of $20.00 assessed once per calendar year for Deutsche Cash Investment Trust Class A, Deutsche Cash Investment Trust Class C and Deutsche Cash Investment Trust Class S shares may apply for accounts with balances less than $10,000. This fee is not included in these tables. If it was, the estimate of
expenses paid for these shares during the period would be higher, and account value during the period would be lower, by this amount.
| | | | | | |
| | Deutsche Money Market Prime Series | | | 25 | |
| | | | | | | | | | | | | | | | |
Expenses and Value of a $1,000 Investment
for the six months ended January 31, 2018 (Unaudited) | |
| | | | |
| Actual Fund Return | | Deutsche
Cash
Investment
Trust
Class A | | | Deutsche
Cash
Investment
Trust
Class C | | | Deutsche
Cash
Investment
Trust
Class S | | | Deutsche
Money
Market
Fund | |
| Beginning Account Value 8/1/17 | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | |
| Ending Account Value 1/31/18 | | $ | 1,002.92 | | | $ | 1,000.10 | | | $ | 1,004.20 | | | $ | 1,004.20 | |
| Expenses Paid per $1,000* | | $ | 4.14 | | | $ | 7.06 | | | $ | 2.88 | | | $ | 2.88 | |
| | | | |
| Hypothetical 5% Fund Return | | Deutsche
Cash
Investment
Trust
Class A | | | Deutsche
Cash
Investment
Trust
Class C | | | Deutsche
Cash
Investment
Trust
Class S | | | Deutsche
Money
Market
Fund | |
| Beginning Account Value 8/1/17 | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | | | $ | 1,000.00 | |
| Ending Account Value 1/31/18 | | $ | 1,021.07 | | | $ | 1,018.15 | | | $ | 1,022.33 | | | $ | 1,022.33 | |
| Expenses Paid per $1,000* | | $ | 4.18 | | | $ | 7.12 | | | $ | 2.91 | | | $ | 2.91 | |
| * | Expenses are equal to the Fund’s annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 184 (the number of days in the most recent six-month period), then divided by 365. |
| | | | | | | | | | | | | | | | |
| Annualized Expense Ratios | | Deutsche
Cash
Investment
Trust
Class A | | | Deutsche
Cash
Investment
Trust
Class C | | | Deutsche
Cash
Investment
Trust
Class S | | | Deutsche
Money
Market
Fund | |
| Deutsche Money Market Prime Series | | | 0.82 | % | | | 1.40 | % | | | 0.57 | % | | | 0.57 | % |
For more information, please refer to the Fund’s prospectus.
For an analysis of the fees associated with an investment in the Fund or similar funds, please refer to http://apps.finra.org/fundanalyzer/1/fa.aspx.
| | | | |
| 26 | | Deutsche Money Market Prime Series | | |
Advisory Agreement Board Considerations and Fee Evaluation
The Board of Trustees (hereinafter referred to as the “Board” or “Trustees”) approved the renewal of Deutsche Money Market Prime Series’ (the “Fund”) investment management agreement (the “Agreement”) with Deutsche Investment Management Americas Inc. (“DIMA”) in September 2017.
In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:
| – | During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”). |
| – | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board’s Contract Committee reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Board. The Board then reviewed the Contract Committee’s findings and recommendations. |
| – | The Board also received extensive information throughout the year regarding performance of the Fund. |
| – | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
| – | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s Rule 12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DIMA and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests
| | | | | | |
| | Deutsche Money Market Prime Series | | | 27 | |
of the Fund. The Board considered, generally, that shareholders chose to invest or remain invested in the Fund knowing that DIMA managed the Fund, and that the Agreement was approved by the Fund’s shareholders. DIMA is part of Deutsche Bank AG’s (“Deutsche Bank”) Asset Management (“Deutsche AM”) division. Deutsche AM is a global asset management business that offers a wide range of investing expertise and resources, including research capabilities in many countries throughout the world.
As part of the contract review process, the Board carefully considered the fees and expenses of each Deutsche fund overseen by the Board in light of the fund’s performance. In many cases, this led to the negotiation and implementation of expense caps. As part of these negotiations, the Board indicated that it would consider relaxing these caps in future years following sustained improvements in performance, among other considerations.
While shareholders may focus primarily on fund performance and fees, the Fund’s Board considers these and many other factors, including the quality and integrity of DIMA’s personnel and administrative support services provided by DIMA, such as back-office operations, fund valuations, and compliance policies and procedures.
Nature, Quality and Extent of Services. The Board considered the terms of the Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DIMA provides portfolio management services to the Fund and that, pursuant to a separate administrative services agreement, DIMA provides administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel and the resources made available to such personnel. The Board reviewed the Fund’s performance over short-term and long-term periods and compared those returns to various agreed-upon performance measures, including a peer universe compiled using information supplied by iMoneyNet, an independent fund data service. The Board also noted that it has put into place a process of identifying “Funds in Review” (e.g., funds performing poorly relative to a peer universe), and receives additional reporting from DIMA regarding such funds and, where appropriate, DIMA’s plans to address underperformance. The Board believes this process is an effective manner of identifying and addressing underperforming funds. Based on the information provided, the Board noted that, for the one- and three-year periods ended December 31, 2016, the Fund’s gross performance (Deutsche Cash Investment Trust Class A shares) was in the 2nd quartile of the applicable iMoneyNet universe (the 1st quartile being the best performers and the 4th quartile being the worst performers).
Fees and Expenses. The Board considered the Fund’s investment management fee schedule, operating expenses and total expense ratios,
| | | | |
| 28 | | Deutsche Money Market Prime Series | | |
and comparative information provided by Broadridge Financial Solutions, Inc. (“Broadridge”) and the Fee Consultant regarding investment management fee rates paid to other investment advisors by similar funds (1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates paid by the Fund, which include a 0.10% fee paid to DIMA under the Fund’s administrative services agreement, were lower than the median (2nd quartile) of the applicable Broadridge peer group (based on Broadridge data provided as of December 31, 2016). Based on Broadridge data provided as of December 31, 2016, the Board noted that the Fund’s total (net) operating expenses were higher than the median of the applicable Broadridge expense universe for the following share classes: Deutsche Cash Investment Trust Class A shares (4th quartile), Deutsche Cash Investment Trust Class S shares (4th quartile) and Deutsche Money Market Fund shares (4th quartile) and lower than the median of the applicable Broadridge expense universe for the following share class: Deutsche Cash Investment Trust Class C shares (1st quartile). The Board noted the expense limitations agreed to by DIMA. The Board also noted the voluntary fee waivers implemented by DIMA to ensure the Fund maintained a positive yield. The Board considered the Fund’s management fee rate as compared to fees charged by DIMA to comparable Deutsche U.S. registered funds (“Deutsche Funds”) and considered differences between the Fund and the comparable Deutsche Funds. The information requested by the Board as part of its review of fees and expenses also included information about institutional accounts (including any sub-advised funds and accounts) and funds offered primarily to European investors (“Deutsche Europe funds”) managed by Deutsche AM. The Board noted that DIMA indicated that Deutsche AM does not manage any institutional accounts or Deutsche Europe funds comparable to the Fund.
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DIMA.
Profitability. The Board reviewed detailed information regarding revenues received by DIMA under the Agreement. The Board considered the estimated costs to DIMA, and pre-tax profits realized by DIMA, from advising the Deutsche Funds, as well as estimates of the pre-tax profits attributable to managing the Fund in particular. The Board also received information regarding the estimated enterprise-wide profitability of DIMA and its affiliates with respect to all fund services in totality and by fund. The Board and the Fee Consultant reviewed DIMA’s methodology in allocating its costs to the management of the Fund. Based on the information provided, the Board concluded that the pre-tax profits realized
| | | | | | |
| | Deutsche Money Market Prime Series | | | 29 | |
by DIMA in connection with the management of the Fund were not unreasonable. The Board also reviewed certain publicly available information regarding the profitability of certain similar investment management firms. The Board noted that, while information regarding the profitability of such firms is limited (and in some cases is not necessarily prepared on a comparable basis), DIMA and its affiliates’ overall profitability with respect to the Deutsche Funds (after taking into account distribution and other services provided to the funds by DIMA and its affiliates) was lower than the overall profitability levels of most comparable firms for which such data was available.
Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Fund and whether the Fund benefits from any economies of scale. The Board noted that the Fund’s investment management fee schedule includes fee breakpoints. The Board concluded that the Fund’s fee schedule represents an appropriate sharing between the Fund and DIMA of such economies of scale as may exist in the management of the Fund at current asset levels.
Other Benefits to DIMA and Its Affiliates. The Board also considered the character and amount of other incidental benefits received by DIMA and its affiliates, including any fees received by DIMA for administrative services provided to the Fund, any fees received by an affiliate of DIMA for transfer agency services provided to the Fund and any fees received by an affiliate of DIMA for distribution services. The Board also considered benefits to DIMA related to brokerage and soft-dollar allocations, including allocating brokerage to pay for research generated by parties other than the executing broker dealers, which pertain primarily to funds investing in equity securities. In addition, the Board considered the incidental public relations benefits to DIMA related to Deutsche Funds advertising and cross-selling opportunities among DIMA products and services. The Board considered these benefits in reaching its conclusion that the Fund’s management fees were reasonable.
Compliance. The Board considered the significant attention and resources dedicated by DIMA to documenting and enhancing its compliance processes in recent years. The Board noted in particular (i) the experience, seniority and time commitment of the individuals serving as DIMA’s and the Fund’s chief compliance officers; (ii) the large number of DIMA compliance personnel; and (iii) the substantial commitment of resources by DIMA and its affiliates to compliance matters.
Based on all of the information considered and the conclusions reached, the Board unanimously determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of
| | | | |
| 30 | | Deutsche Money Market Prime Series | | |
numerous meetings, certain of which were in executive session with only the Independent Trustees and counsel present. It is possible that individual Independent Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.
| | | | | | |
| | Deutsche Money Market Prime Series | | | 31 | |
Account Management Resources
| | |
| For More Information | | The automated telephone system allows you to access personalized account information and obtain information on other Deutsche funds using either your voice or your telephone keypad. Certain account types within Deutsche Cash Investment Trust Class A, Deutsche Cash Investment Trust Class C and Deutsche Cash Investment Trust Class S also have the ability to purchase, exchange or redeem shares using this system. For more information, contact your financial advisor. You may also access our automated telephone system or speak with a Shareholder Service representative by calling: (800) 728-3337 |
| Web Site | | dws.com View your account transactions and balances, trade shares, monitor your asset allocation, subscribe to fund and account updates by e-mail, and change your address, 24 hours a day. Obtain prospectuses and applications, news about Deutsche funds, insight from DWS economists and investment specialists and access to Deutsche fund account information. |
| Written Correspondence | | DWS PO Box 219151 Kansas City, MO 64121-9151 |
| Proxy Voting | | The Fund’s policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 are available on our Web site — dws.com/en-us/resources/proxy-voting — or on the SEC’s Web site — sec.gov. To obtain a written copy of the Fund’s policies and procedures without charge, upon request, call us toll free at (800) 728-3337. |
| Portfolio Holdings | | Following the Fund’s fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC on Form N-Q. In addition, each month, information about the Fund and its portfolio holdings is filed with the SEC on Form N-MFP. The SEC delays the public availability of the information filed on Form N-MFP for 60 days after the end of the reporting period included in the filing. These forms will be available on the SEC’s Web site at sec.gov, and they may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the SEC’s Public Reference Room may be obtained by calling (800) SEC-0330. The Fund’s portfolio holdings are also posted on dws.com from time to time. Please see the Fund’s current prospectus for more information. |
| Principal Underwriter | | If you have questions, comments or complaints, contact: DWS Distributors, Inc. 222 South Riverside Plaza Chicago, IL 60606-5808 (800) 621-1148 |
| | | | |
| 32 | | Deutsche Money Market Prime Series | | |
| | | | | | |
| Investment Management | | Deutsche Investment Management Americas Inc. (“DIMA” or the “Advisor”), which is part of DWS, is the investment advisor for the Fund. DIMA and its predecessors have more than 90 years of experience managing mutual funds and DIMA provides a full range of investment advisory services to both institutional and retail clients. DIMA is an indirect, wholly owned subsidiary of Deutsche Bank AG. Deutsche Bank AG is a major global banking institution engaged in a wide variety of financial services, including investment management, retail, private and commercial banking, investment banking and insurance. |
| | | |
| | | Nasdaq Symbol | | CUSIP Number | | Fund Number |
| Deutsche Money Market Fund | | KMMXX | | 25159J 104 | | 6 |
| Deutsche Cash Investment Trust Class A | | DOAXX | | 25159J 203 | | 421 |
| Deutsche Cash Investment Trust Class C | | DOCXX | | 25159J 401 | | 721 |
| Deutsche Cash Investment Trust Class S | | DOSXX | | 25159J 500 | | 2021 |
| | | | | | |
| | Deutsche Money Market Prime Series | | | 33 | |
Privacy Statement
| | |
| FACTS | | What Does DWS Do With Your Personal Information? |
| Why? | | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share and protect your personal information. Please read this notice carefully to understand what we do. |
| What? | | The types of personal information we collect and share can include: – Social Security number – Account balances – Purchase and transaction history – Bank account information – Contact information such as mailing address, e-mail address and telephone number |
| How? | | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information, the reasons DWS chooses to share and whether you can limit this sharing. |
| | | | |
| Reasons we can share your personal information | | Does DWS
share? | | Can you limit
this sharing? |
For our everyday business purposes —
such as to process your transactions, maintain your account(s), respond to court orders or legal investigations | | Yes | | No |
| For our marketing purposes — to offer our products and services to you | | Yes | | No |
| For joint marketing with other financial companies | | No | | We do not share |
| For our affiliates’ everyday business purposes — information about your transactions and experiences | | No | | We do not share |
| For our affiliates’ everyday business purposes — information about your creditworthiness | | No | | We do not share |
| For non-affiliates to market to you | | No | | We do not share |
| | |
| Questions? | | Call (800) 728-3337 or e-mail us at service@dws.com |
| | | | |
| 34 | | Deutsche Money Market Prime Series | | |
| | |
|
| Who we are | | |
| Who is providing this notice? | | DWS Distributors, Inc; Deutsche Investment Management Americas Inc.; Deutsche AM Trust Company; the Deutsche Funds |
| What we do | | |
| How does DWS protect my personal information? | | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. |
| How does DWS collect my personal information? | | We collect your personal information, for example, when you: –openan account –giveus your contact information –providebank account information for ACH or wire transactions –tellus where to send money –seekadvice about your investments |
| Why can’t I limit all sharing? | | Federal law gives you the right to limit only – sharing for affiliates’ everyday business purposes – information about your creditworthiness – affiliates from using your information to market to you – sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. |
| Definitions | | |
| Affiliates | | Companies related by common ownership or control. They can be financial or non-financial companies. Our affiliates include financial companies with the DWS or Deutsche Bank (“DB”) name, such as DB AG Frankfurt. |
| Non-affiliates | | Companies not related by common ownership or control. They can be financial and non-financial companies. Non-affiliates we share with include account service providers, service quality monitoring services, mailing service providers and verification services to help in the fight against money laundering and fraud. |
| Joint marketing | | A formal agreement between non-affiliated financial companies that together market financial products or services to you. DWS does not jointly market. |
| | Rev. 3/2018 |
| | | | | | |
| | Deutsche Money Market Prime Series | | | 35 | |
DMMF-3
(R-026260-8 3/18)
| | |
| 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. | AUDIT COMMITTEE OF LISTED REGISTRANTS |
| | |
| | Not applicable |
| | |
| ITEM 6. | SCHEDULE OF INVESTMENTS |
| | |
| | Not applicable |
| | |
| ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
| | |
| | Not applicable |
| | |
| ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
| | |
| | Not applicable |
| | |
| ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS |
| | |
| | Not applicable |
| | |
| ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
| | |
| | There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board. 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 Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Keith R. Fox, Deutsche Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA 02199-3600. |
| | |
| ITEM 11. | 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 changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting. |
| | |
| ITEM 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
| | |
| | Not applicable |
| | |
| ITEM 13. | EXHIBITS |
| | |
| | (a)(1) | Not applicable |
| | |
| | (a)(2) | 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. |
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 Money Market Prime Series, a series of Deutsche Money Funds |
| | |
| | |
| By: | /s/Hepsen Uzcan Hepsen Uzcan President |
| | |
| Date: | 3/30/2018 |
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.
| By: | /s/Hepsen Uzcan Hepsen Uzcan President |
| | |
| Date: | 3/30/2018 |
| | |
| | |
| | |
| By: | /s/Paul Schubert Paul Schubert Chief Financial Officer and Treasurer |
| | |
| Date: | 3/30/2018 |
