UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM N-CSR Investment Company Act file number 811-4760 ADVISOR FUNDS -------------------- (Exact Name of Registrant as Specified in Charter) One South Street, Baltimore, Maryland 21202 -------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, including Area Code: (410) 895-5000 -------------- Daniel O. Hirsch, Esq. One South Street Baltimore, Maryland 21202 ----------------------------------------- (Name and Address of Agent for Service) Date of fiscal year end: 12/31 Date of reporting period: 6/30/03ITEM 1. REPORT TO STOCKHOLDERS
NY Tax Free Money Fund Investment
Tax Free Money Fund Investment
Semiannual Report to
Shareholders
June 30, 2003
Contents |
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Investment Funds | Nasdaq Symbol | CUSIP Number |
NY Tax Free Money Fund Investment | BNYXX | 81111R 304 |
Tax Free Money Fund Investment | BTXXX | 81111R 205 |
This report must be preceded or accompanied by a current prospectus for the fund.
Deutsche Asset Management 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.
In the following interview, Portfolio Manager Steven H. Boyd discusses the market environment and his team's approach to managing the funds during the six-month period ended June 30, 2003.
Q: How did the funds perform over the semiannual period?
A: For the six months ended June 30, 2003, Tax Free Money Fund Investment's seven-day annualized yield declined from 0.76% to 0.32% (0.49% taxable equivalent yield). NY Tax Free Money Fund Investment's seven-day annualized yield declined from 0.72% to 0.29% (0.50% taxable-equivalent yield). In both cases, the yield changes primarily reflect the ripple effect of the Federal Reserve Board's 50 basis point (i.e., one-half of a percentage point) interest rate cut on November 6, 2002. The Federal Reserve Board's 25-basis-point (i.e., one-quarter of a percentage point) cut on June 25, 2003, also had an impact on the funds' yields. This is because as securities matured, proceeds were reinvested in securities that reflected the then current level of rates, which were trending lower given the Federal Reserve Board rate cuts.
For the six-month period ended June 30, 2003, Tax Free Money Fund Investment returned 0.22% for the semiannual period, compared with the 0.40% average return of the iMoneyNet National Retail Tax Free Money Funds Average. The NY Tax Free Money Fund returned 0.21%, compared with the 0.27% average return of the iMoneyNet State Specific Retail Money Funds Average.1,2
1 iMoneyNet National Retail Tax Free Money Funds Average and the iMoneyNet State Specific Retail Money Funds Average are provided through Money Fund Report Average, a service of iMoneyNet, Inc., and are averages for categories of similar money market funds.2 The yield quotations more closely reflect the current earnings of the fund than the total return quotations.
Q: Until June 2003, the Federal Reserve Board held interest rates steady through the semiannual period. What dominated money market activity instead?
A: Federal Reserve Board policy still had a major impact on the backdrop to money market activity. In March 2003, the Federal Reserve Board stated that it would not take a stance on monetary policy given "the unusually large uncertainties clouding the geopolitical situation in the short run and their apparent effects on economic decision making." On May 6, the Federal Reserve Board again kept the targeted federal funds rate unchanged at 1.25% but made it clear that it would maintain its accommodative monetary policy. It believed the probability of deflation exceeded that of a pickup in inflation over the next few quarters. Thus, money market yields continued to fall.
3 The federal funds rate is the interest rate banks charge each other for overnight loans and is a closely watched indicator of US Federal Reserve Board monetary policy.In the months leading up to the June 2003 Federal Reserve Board meeting, the tax-free money market yield curve inverted, with short-term variable rates exceeding those of one-year fixed rates. Then, on June 25, the Federal Reserve Board cut the targeted federal funds rate by 25 basis points to 1.00% in an effort to further support the economy and stimulate more growth over a longer period. This was the 13th time since the start of 2001 that the Federal Reserve Board cut rates, bringing current interest rates to their lowest level since 1958. Immediately after the decision, short-term variable rates fell and one-year municipal note yields rose.
Q: What factors specific to the municipal markets had the most significant impact?
A: Municipal market yields declined during the period. Cash flow into the municipal markets remained steady, and Federal Reserve Board action offset an increase in municipal issuance. Municipal credit quality was affected during the semiannual period as municipalities across the country experienced declining revenue sources and an increase in their "fixed" costs, such as Medicaid, education and prisons. As a result of widespread budget shortfalls, we saw a sharp increase in the need for short-term cash flow issuance. For example, California issued $12 billion in revenue-anticipation warrants in June 2003 and expects to issue additional notes in the third quarter 2003 to further support cash flow needs. Other municipal borrowers came back to the market after several years of surplus had temporarily reduced the need for borrowing. Low interest rates also supported the increase in supply. The increased issuance of short-term notes did not result in significant upward pressure on one-year rates, however, as this rise in supply was offset by the Federal Reserve Board rate cut and ongoing strong demand. Even with the conclusion of active military operations in Iraq, positive returns from the US equity markets, improved corporate earnings, and the Jobs and Growth Tax Relief Reconciliation Act, investors continued their flight to the higher-quality of municipal securities. Reluctant corporate spending, growing unemployment and still sluggish economic growth continued to weigh on investor sentiment. In fact, municipal money market assets increased by approximately 5% over the semiannual period. The yield on one-year municipal notes declined by 0.31% over the semiannual period, to end at a record low 0.84% on June 30, 2003.
Tax Free Money Fund Investment | ||||
7-day | 7-day | |||
June 30, 2003 | .32 | .32 | ||
December 31, 2002 | .76 | .76 |
The 7-day average and compounded effective yields would have been .23% had certain expenses not been reduced for the six month period ended June 30, 2003.
New York Tax Free Money Fund Investment | ||||
7-day | 7-day | |||
June 30, 2003 | .29 | .29 | ||
December 31, 2002 | .72 | .72 |
The 7-day average and compounded effective yields would have been .27% had certain expenses not been reduced for the six month period ended June 30, 2003.
Q: In light of recent market conditions, what was your strategy in Tax Free Money Fund Investment?
A: We adjusted the Tax Free Money Fund Investment's weighted average maturity to prepare for seasonal events and the supply and demand phenomena. The fund began 2003 with a weighted average maturity of 44 days and ended the semiannual period on June 30 with a weighted average maturity of 30 days. In light of the uncertainty in the financial markets and in the US economy, we tried to keep the fund's weighted average maturity in a neutral to shorter-than-the benchmark range. This was especially so in April and May, when the municipal money market yield curve inverted. We continued to focus on the highest-quality investments throughout the period while seeking competitive yields across the municipal investment spectrum. In particular, we emphasized essential-services revenue issues and what is known as enhanced paper, i.e., securities guaranteed by a third party such as a bank or an insurance company. Given our credit concerns regarding California's downgrade in December 2002 and its subsequent placement on negative watch in June 2003, we chose not to participate in California's June issuance sale. Net assets in the fund increased by approximately 10% during the semiannual period.
Q: What has been the strategy for the NY Tax Free Money Fund Investment?
A: As with Tax Free Money Fund Investment, we adjusted this fund's weighted average maturity to prepare for seasonal events and the supply and demand phenomena, such as tax time in April, high issuance in June, and the January and July reinvestment periods. Redemptions from tax-exempt money markets during the 2003 tax season totaled approximately 2%, the same percentage as in 2002. Given the flight to greater levels of safety benefiting US municipal markets and the relatively light season of tax redemptions, there was only a brief intra-month increase in yields during April. The fund began the year with a weighted average maturity of 34 days and ended the semiannual period with a weighted average maturity of 27 days. Net assets in the fund decreased by nearly 11% during the semiannual period.
Q: Do you anticipate any change in your management strategies?
A: We intend to maintain our conservative investment strategies as we seek to provide high current income consistent with liquidity and capital preservation.
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 management team's views are subject to change at any time based on market and other conditions and should not be construed as a recommendation.
NY Tax Free Money Fund Investment | Principal Amount ($) | Value ($) |
Municipal Investments 99.9% | ||
Arlington, New York, Central School District, Revenue Anticipation Note, 1.5%, 8/15/2003 | 3,000,000 | 3,001,895 |
Chemung County, New York, Industrial Development Agency, Civic Facilities Revenue, Arnot Ogden Medical Center, Series A, 0.95%*, 3/1/2019 (c) | 740,000 | 740,000 |
Erie County, New York, Industrial Development Agency Revenue, Civic Facilities Revenue, Subordinate Adult Services, Revenue Bond, 1.1%*, 6/1/2022 (c) | 5,515,000 | 5,515,000 |
Long Island Power Authority, New York, Electric System Revenue: 1.08%*, 12/1/2024 | 3,480,000 | 3,480,000 |
Series D, 0.9%*, 12/1/2029 (b)(c) | 3,000,000 | 3,000,000 |
Sub-series 2A, 0.95%*, 5/1/2033 (c) | 1,000,000 | 1,000,000 |
New York & New Jersey Port Authority, 80th Series, 5.8%, 8/1/2003 (c) | 500,000 | 501,917 |
New York & New Jersey Port Authority, Revenue Notes, Series UU, 2.0%, 10/15/2003 (c) | 1,200,000 | 1,203,372 |
New York City, New York, 1.08%*, 8/1/2006 | 1,400,000 | 1,400,000 |
New York City, New York, GO: Prerefunded, Series B, 5.75%, 8/15/2011 | 500,000 | 510,171 |
Series D, 0.9%*, 2/1/2022 (b)(c) | 700,000 | 700,000 |
Sub-series C-5, 0.9%*, 8/1/2020 (c) | 300,000 | 300,000 |
Sub-series H-4, 0.9%*, 8/1/2015 (b)(c) | 1,600,000 | 1,600,000 |
Sub-series J-3, 1.05%*, 2/15/2016 (c) | 1,500,000 | 1,500,000 |
New York City, New York, Housing Development Corp., Mortgage Revenue, Columbus Apartments, Series A, 0.95%*, 3/15/2025 (b)(c) | 1,300,000 | 1,300,000 |
New York City, New York, Housing Development Corp., Multi-family Rent Housing Revenue, Revenue Bond, Series A, 0.95%*, 11/15/2019 (c) | 3,500,000 | 3,500,000 |
New York City, New York, Municipal Water Finance Authority, Water & Sewer Revenue, 1.0%, 8/14/2003 | 1,000,000 | 1,000,000 |
New York City, New York, Transitional Finance Authority Revenue, 1.01%*, 2/1/2020 (b)(c) | 3,000,000 | 3,000,000 |
New York City, New York, Transitional Finance Authority Revenue, Bond Anticipation Notes, Series 2, 2.0%, 2/19/2004 | 1,000,000 | 1,005,678 |
New York City, New York, Transitional Finance Authority Revenue, Future Tax Secured: Series A, 1.0%*, 2/15/2030 (c) | 45,000 | 45,000 |
Series A-1, 1.0%*, 11/15/2022 | 950,000 | 950,000 |
New York City, New York, Transitional Finance Authority Revenue, Series A-40, 1.04%*, 11/1/2026 | 2,000,000 | 2,000,000 |
New York State, Dormitory Authority Revenue, Cornell University: Series A, 0.95%*, 7/1/2029 | 3,800,000 | 3,800,000 |
Series B, 0.95%*, 7/1/2030 | 5,810,000 | 5,810,000 |
New York State, Dormitory Authority Revenue, Rockerfeller University, Series A-2, 0.95%*, 7/1/2032 | 1,500,000 | 1,500,000 |
New York State, Environmental Facilities Corp., State Clean Water & Drinking Revolving Funds, Series F, Revenue Bond, 1.5%, 1/15/2004 | 1,600,000 | 1,605,296 |
New York State, Housing Finance Agency Services, Revenue Bond, Series D, 0.9%*, 3/15/2026 (c) | 2,600,000 | 2,600,000 |
New York State, Local Government Assistance Corp., Series 4-V, 1.05%*, 4/1/2022 (b)(c) | 2,500,000 | 2,500,000 |
New York State, Power Authority, Commercial Paper: 0.9%, 9/4/2003 | 600,000 | 600,000 |
0.95%, 8/14/2003 | 2,000,000 | 2,000,000 |
1.02%, 7/9/2003 | 3,000,000 | 3,000,000 |
New York State, Thruway Authority, General Highway and Bridge, Series 2003-4, 1.13%*, 4/1/2017 | 3,000,000 | 3,000,000 |
New York State, Thruway Authority, General Revenue, Bond Anticipation Notes, Series A, 1.125%, 3/25/2004 | 1,200,000 | 1,200,146 |
New York State, Urban Development Corp. Revenue, 1.04%*, 3/15/2028 (b)(c) | 3,000,000 | 3,000,000 |
New York, Metropolitan Transportation Authority, Revenue Bond, 1.01%*, 5/15/2010 (b)(c) | 1,895,000 | 1,894,984 |
New York, Metropolitan Transportation Authority, Commuter Facilities Revenue, Series R, 5.0%, 7/1/2003 | 1,000,000 | 1,000,000 |
New York, Metropolitan Transportation Authority, Commercial Paper, Series 1-A, 1.05%, 8/11/2003 | 2,000,000 | 2,000,000 |
New York, Oneida Indian Nation, 1.0%*, 10/1/2032 (c) | 4,000,000 | 4,000,000 |
New York, Three Village Central School District, Brookhaven & Smithtown, Tax Anticipation Notes, 1.25%, 6/30/2004 (c) | 1,000,000 | 1,004,420 |
New York, Tobacco Settlement Financing Corp., Revenue Bonds: 1.03%*, 6/1/2021 (b)(c) | 2,000,000 | 2,000,000 |
1.1%*, 12/1/2007 (c) | 3,125,000 | 3,125,000 |
1.12%*, 6/1/2016 (b)(c) | 2,000,000 | 2,000,000 |
Otsego County, New York, Industrial Development Agency, Civic Facilities Revenue, Noonan Community Services Corp., 1.0%*, 3/1/2025 (c) | 1,000,000 | 1,000,000 |
Rockland County, New York, Revenue Anticipation Notes, 2.0%, 2/26/2004 | 3,000,000 | 3,017,465 |
Schenectady County, New York, Industrial Development Agency, Civic Facilities Revenue, Sunnyview, Series B, 1.05%*, 8/1/2033 (c) | 1,600,000 | 1,600,000 |
Yates County, New York, Industrial Development Agency, Civic Facilities Revenue, Series B, 1.05%*, 9/1/2015 (c) | 2,685,000 | 2,685,000 |
Yonkers, New York, Industrial Development Agency, Civic Facilities Revenue, 1.05%*, 7/1/2021 (c) | 1,000,000 | 1,000,000 |
Total Municipal Investments (Cost $94,195,344) | 94,195,344 | |
Money Market Funds 0.1% | ||
BlackRock Provident Institutional New York Money Fund, 0.856% | 18,487 | 18,487 |
Dreyfus New York Municipal Cash Management, 0.84% | 90,731 | 90,731 |
Total Money Market Funds (Cost $109,218) | 109,218 | |
Total Investment Portfolio - 100.0% (Cost $94,304,562) (a) | 94,304,562 |
* 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 June 30, 2003.
(a) The cost for federal income tax purposes was $94,304,562.
(b) Bond is insured by one of these companies:
AMBAC | AMBAC Assurance Corp. |
FGIC | Financial Guaranty Insurance Company |
FHA | Federal Housing Administration |
FHLMC | Federal Home Loan Mortgage Corp. |
FNMA | Federal National Mortgage Association |
FSA | Financial Security Assurance |
MBIA | Municipal Bond Investors Assurance |
(c) Security incorporates a letter of credit or line of credit from a major bank.
Prerefunded: Bonds which are prerefunded are collateralized by US Treasury securities which are held in escrow and are used to pay principal and interest on tax-exempt issues and to retire the bonds in full at the earliest refunding date.
The accompanying notes are an integral part of the financial statements.
Tax Free Money Fund Investment | Principal Amount ($) | Value ($) |
Municipal Investments 99.9% | ||
Alaska 1.8% | ||
Alaska State, Housing Financial Corporation, State Capital Project, Series A, Revenue Bond, 3.0%, 7/1/2003 (c) | 3,040,000 | 3,040,000 |
California 5.5% | ||
Alameda County, California, Series 410, 1.03%, 9/1/2021 | 2,000,000 | 2,000,000 |
California Gas & Electric, Department of Water Resolution Power Supply Revenue, Series C-9, 0.9%*, 5/1/2022 | 500,000 | 500,000 |
California, Community Finance Authority, Tax & Revenue Anticipation Notes, Series A, 2.0%, 6/30/2004 | 1,200,000 | 1,214,280 |
Los Angeles, California, Department of Water & Power Waterworks Revenue, Series 755, 1.03%*, 7/1/2041 (c) | 5,815,000 | 5,815,000 |
9,529,280 | ||
Colorado 4.6% | ||
Colorado, Educational & Cultural Facilities, 1.07%*, 5/1/2033 (b) | 5,000,000 | 5,000,000 |
Colorado, Health Facilities Authority, Exempla, Inc., Series B, Revenue Bond, 1.08%*, 1/1/2033 | 1,000,000 | 1,000,000 |
Colorado, Regional Transit Authority, Series C, 1.0%, 9/4/2003 | 2,000,000 | 2,000,000 |
8,000,000 | ||
District of Columbia 4.8% | ||
District of Columbia, GO City Core, Series D, 0.95%*, 6/1/2029 (b) (c) | 2,000,000 | 2,000,000 |
District of Columbia, 1.05%*, 3/1/2028 | 1,750,000 | 1,750,000 |
District of Columbia, The Washington Home, Inc., Revenue Bond, 1.05%*, 8/1/2029 (b) | 4,695,000 | 4,695,000 |
8,445,000 | ||
Florida 5.6% | ||
Broward County, Florida, Multi Family Housing Revenue, Housing Finance Authority, Series PT-703, Revenue Bond, 1.01%*, 9/1/2026 | 1,600,000 | 1,600,000 |
Florida, Capital Trust Agency, Seminole Tribe Resort, Series B, 1.0%*, 10/1/2033 (b) | 1,000,000 | 1,000,000 |
Florida, Multi Family Housing Revenue, Housing Finance Corp., Victoria Park, Series J-1, 1.0%*, 10/15/2032 | 600,000 | 600,000 |
Gulf Breeze Florida, Florida Municipal Bond Fund, Series A, 1.0%*, 3/31/2021 (b) | 795,000 | 795,000 |
Highlands County, Hospital & Healthcare Revenue, Series A, 0.95%*, 11/15/2032 | 3,000,000 | 3,000,000 |
Jacksonville, Electric Authority Revenue, Series C-1, 1.1%, 7/11/2003 | 1,000,000 | 1,000,000 |
Pinellas County, Health Facilities Authority, Pooled Hospital Loan Program, 0.95%*, 12/1/2015 | 100,000 | 100,000 |
St. Luci County, GO School District , 2.0%, 7/1/2004 (c) | 1,730,000 | 1,748,029 |
9,843,029 | ||
Georgia 1.9% | ||
Fayette County, Georgia, Development Authority, Educational Facilities Revenue, Catholic School Properties, Inc., Revenue Bond, 1.0%*, 4/1/2024 | 100,000 | 100,000 |
Monroe County, Georgia, Development Authority Pollution Control Revenue, Oglethorpe Power Scherer, Series B, 1.0%*, 1/1/2020 | 1,615,000 | 1,615,000 |
Rockdale County, Georgia, Hospital Authority Revenue, Anticipation Certificates, Revenue Bond, 1.0%*, 10/1/2027 (b) | 1,595,000 | 1,595,000 |
3,310,000 | ||
Hawaii 2.3% | ||
Hawaii, Department of Budget and Finance, Kahala Nui Project, Series D, 1.0%*, 11/15/2033 (b) | 1,800,000 | 1,800,000 |
Honolulu, Hawaii, City & County, 1.08%, 8/7/2003 | 2,200,000 | 2,200,000 |
4,000,000 | ||
Illinois 7.7% | ||
Illinois, Education Facilities Authority, 1.08%, 8/18/2003 | 2,000,000 | 2,000,000 |
Illinois, Health Facility Authority Revenue, Revenue Bond, Gottlieb Health, Inc., 0.98%*, 11/15/2024 | 1,700,000 | 1,700,000 |
Illinois, Health Facility Authority Revenue, Revenue Bond, Gottlieb Health, Inc., 0.98%*, 11/15/2025 | 1,860,000 | 1,860,000 |
Illinois, State GO, 2.0%, 1/15/2004 | 5,000,000 | 5,028,078 |
Illinois, Transportation/Tolls Revenue, Regional Transportation Authority, Series A-23, 1.08%*, 7/1/2030 (b) (c) | 500,000 | 500,000 |
Kankakee, Unipair Foundation, Inc. Project, 1.06%*, 5/1/2021 (b) | 2,370,000 | 2,370,000 |
13,458,078 | ||
Indiana 1.7% | ||
Indiana, Special Assessment Revenue, Series A, 2.0%, 1/27/2004 | 1,800,000 | 1,809,210 |
Indianapolis, Indiana, Industrial Economic Development Revenue, Jewish Federation Campus, 1.0%*, 4/1/2005 | 1,220,000 | 1,220,000 |
3,029,210 | ||
Iowa 2.5% | ||
Iowa Finance Authority Hospital Facility Revenue, Iowa Health Systems, Series B, Revenue Bond, 1.0%*, 7/1/2015 | 1,000,000 | 1,000,000 |
Iowa Finance Authority Hospital Facility Revenue, Iowa Health Systems, Series B, Revenue Bond, 1.0%*, 1/1/2028 | 1,930,000 | 1,930,000 |
Iowa, Finance Authority Revenue, Miss VY Regional Blood Center, 1.0%*, 2/1/2023 (b) | 1,500,000 | 1,500,000 |
4,430,000 | ||
Kentucky 1.8% | ||
Somerset, Kentucky, Blakley Family YMCA, Inc., Revenue Bond, 1.05%*, 4/1/2015 (b) | 3,170,000 | 3,170,000 |
Louisiana 0.5% | ||
Louisiana, Offshore Term Authority Port Revenue, Loop LLC Project, Series A, 1.0%*, 9/1/2014 (b) | 800,000 | 800,000 |
Maine 0.8% | ||
Maine, State GO, Tax Anticipation Notes, 1.75%, 6/30/2004 | 1,425,000 | 1,438,381 |
Maryland 1.8% | ||
Maryland, State Economic Development Corp., Student Housing Revenue, Baltimore County Project, 1.0%*, 11/1/2031 (b) | 3,200,000 | 3,200,000 |
Massachusetts 3.0% | ||
Marblehead, Massachusetts, GO Unlimited Notes, Bond Anticipation Notes, 2.25%, 8/21/2003 | 350,000 | 350,429 |
Marblehead, Massachusetts, GO Unlimited Notes, Bond Anticipation Notes, 2.35%, 8/21/2003 | 2,000,000 | 2,002,729 |
Massachusetts State, Development Finance Agency, North Shore YMCA Project, Revenue Bond, 1.1%*, 11/1/2022 (b) | 2,960,000 | 2,960,000 |
5,313,158 | ||
Michigan 3.3% | ||
Detroit, City School District , 1.03%*, 5/1/2023 | 1,000,000 | 1,000,000 |
Detroit, City, School District, 1.06%*, 5/1/2017 (b) (c) | 700,000 | 700,000 |
Kentwood, Michigan Public Schools, Series A, 1.12%*, 5/1/2020 (b) (c) | 3,195,000 | 3,195,000 |
Oakland University, Michigan, Revenue Bond, 1.05%*, 3/1/2031 (b) (c) | 875,000 | 875,000 |
5,770,000 | ||
Minnesota 2.6% | ||
Minnesota, Rochester Mayo Foundation, 1.0%, 7/14/2003 | 2,000,000 | 2,000,000 |
Minnesota, Rochester Mayo Foundation, 1.05%, 7/14/2003 | 2,500,000 | 2,500,000 |
4,500,000 | ||
Missouri 0.1% | ||
Missouri State, Health Educational Facility Authority, Health Facilities Revenue, Demand-Barnes Hospital Project, Revenue Bond, 0.95%*, 12/1/2015 | 200,000 | 200,000 |
Nevada 0.6% | ||
Clark County, Nevada, Airport Revenue, Series C, 0.9%*, 7/1/2029 (b) (c) | 1,000,000 | 1,000,000 |
New York 11.3% | ||
Arlington, New York, GO Unlimited Notes School District, Revenue Anticipation Notes, 1.5%, 8/15/2003 | 4,800,000 | 4,803,032 |
Long Island, New York, Electric Revenue, Power Authority Electrical System, Series 3B, 0.95%*, 5/1/2033 (b) | 100,000 | 100,000 |
New York, New York, City Transitional Finance Authority, Anticipation Notes, Series 2, 2.0%, 2/19/2004 | 1,000,000 | 1,005,678 |
New York State, Dormitory Authority Revenue, Cornell University, Series B, 1.0%*, 7/1/2025 | 600,000 | 600,000 |
New York, Tobacco Settlement Financing Corp. Series 1894, 1.12%*, 6/1/2012 | 3,520,000 | 3,520,000 |
New York, Transportation/Tolls Revenue, Triborough Bridge & Tunnel Authority, Series II-R 2013, 1.01%*, 11/15/2021 (b) (c) | 300,000 | 300,000 |
New York, Transportation/Tolls Revenue,Throughway Authority, Series 2003-4, 1.13%*, 4/1/2017 | 2,000,000 | 2,000,000 |
New York City Municipal Water Financial Authority, 1.0%, 8/14/2003 | 2,500,000 | 2,500,000 |
New York State, GO Environmental Qualified Authority, Series 1997 A, 1.05%, 7/23/2003 | 5,000,000 | 5,000,000 |
19,828,710 | ||
North Carolina 1.1% | ||
North Carolina, Medical Care Community Health Care Facilities Revenue, Grace Hospital, Inc. Project, Revenue Bond, 1.0%*, 10/1/2025 (b) | 2,000,000 | 2,000,000 |
Ohio 2.3% | ||
Hunron County, Ohio, Hospital Facilities Revenue, Fisher-Titus Medical Center, Series A, 1.02%*, 12/1/2027 (b) | 1,000,000 | 1,000,000 |
Summit County, Ohio, Western Reserve Academy Project, Revenue Bond, 1.05%*, 10/1/2027 (b) | 3,000,000 | 3,000,000 |
4,000,000 | ||
Oklahoma 1.1% | ||
Paine County, Oklahoma, Economic Development Authority, Student Housing Revenue, Oklahoma State University Phase III Project, Revenue Bond, 1.02%*, 6/1/2032 | 2,000,000 | 2,000,000 |
Pennsylvania 6.2% | ||
Delaware River, Airport Revenue, Port Authority PA and NJ Revenue, Series 396, 0.96%*, 1/1/2019 (b) (c) | 1,760,000 | 1,760,000 |
Delaware Valley, Regional Finance Authority Local Government Revenue, Series 784, 1.03%*, 7/1/2026 (b) (c) | 2,000,000 | 2,000,000 |
Latrobe, Pennsylvania, Industrial Development Authority Revenue, 1.05%*, 6/1/2033 (b) | 2,500,000 | 2,500,000 |
Lehigh County, Pennsylvania, Industrial Development Authority, Pollution Control Revenue, Allegheny Electric Corp. , 1.2%*, 6/1/2014 (b) | 400,000 | 400,000 |
Manheim Township, Pennsylvania, GO School District, 1.05%*, 6/1/2016 (b) (c) | 3,000,000 | 3,000,000 |
Pennsylvania, State Public School Building Authority, College Revenue, Northhampton County Area, 1.75%, 4/1/2004 (c) | 500,000 | 502,990 |
Pennsylvania, Higher Education Facilities Authority, College & University Revenue, 6.0%, 11/1/2003 | 700,000 | 711,513 |
10,874,503 | ||
Puerto Rico 1.0% | ||
Puerto Rico, GO Unlimited, Series D, 1.03%*, 7/1/2020 (c) | 1,800,000 | 1,800,000 |
South Carolina 2.3% | ||
South Carolina, Jobs Economic Development Authority, Baptist Ministries, Inc., Revenue Bond, 1.0%*, 7/1/2020 | 1,455,000 | 1,455,000 |
South Carolina, Jobs Economic Development Authority, Heathwood Hall Episcopal, Revenue Bond, 1.0%*, 8/1/2029 | 1,500,000 | 1,500,000 |
South Carolina, Jobs Economic Development Authority, Sisters of Charity Hospital, Revenue Bond, 1.03%*, 11/1/2032 (b) | 1,000,000 | 1,000,000 |
3,955,000 | ||
Tennessee 2.2% | ||
Blount County, Tennessee, Public Building Authority, Local Government Public Improvements, Series A-6C, Revenue Bond, 1.01%*, 6/1/2022 (b) (c) | 2,500,000 | 2,500,000 |
Memphis, Tennessee, GO Unlimited, Series A, 1.0%*, 8/1/2003 (b) | 1,400,000 | 1,400,000 |
3,900,000 | ||
Texas 14.7% | ||
Corpus Christi, Texas, Electric Revenue, Utility System, 1.06%, 7/15/2020 | 2,330,000 | 2,330,000 |
Houston, Texas, Airport Systems Revenue, 1.06%, 7/1/2032 | 1,735,000 | 1,735,000 |
Houston, Texas, Water and Sewer Authority, Series A, 1.05%, 7/9/2003 | 2,000,000 | 2,000,000 |
Southwest Higher Education Authority, Inc., Southern Methodist University Project, Series B, 0.9%*, 10/1/2029 (b) | 500,000 | 500,000 |
Texas State, Tax and Revenue Anticipation Notes, 2.75%, 8/29/2003 | 3,900,000 | 3,908,526 |
Texas, GO State, 0.95%, 8/14/2003 | 3,000,000 | 3,000,000 |
Texas, Higher Education Revenue, University of Texas, 1.03%, 5/15/2019 (b) | 3,000,000 | 3,000,000 |
Texas, Project Revenue, Lower Colorado River Authority, Series 2003-3, 1.18%, 5/15/2016 | 3,170,000 | 3,170,000 |
Texas, Securities Trust Certificates, Series 9056, 1.1%*, 7/21/2010 (b) (c) | 5,990,000 | 5,990,000 |
25,633,526 | ||
Virginia 0.7% | ||
Virginia, Development Authority, Residential Care Facilities Revenue, Westminster Canterbury, Series B, 1.0%*, 11/1/2006 | 1,260,000 | 1,260,000 |
West Virginia 0.6% | ||
Monongalia County, West Virginia, Building Community Hospital Revenue, Monongalia General Hospital, Series A, 1.15%*, 7/1/2017 | 1,000,000 | 1,000,000 |
Wisconsin 3.4% | ||
Wisconsin Transportation Authority, 1.1%, 7/7/2003 | 6,000,000 | 6,000,000 |
Wyoming 0.1% | ||
Platte County, Wyoming, Poll Control Revenue, Series B, 1.1%*, 7/1/2014 | 100,000 | 100,000 |
Total Municipal Investments (Cost $174,827,875) | 174,827,875 | |
Money Market Funds 0.1% | ||
BlackRock Provident Institutional MuniFund Portfolio, 0.881% | 5,572 | 5,572 |
Dreyfus Tax Exempt Cash Management, 0.89% | 100,781 | 100,782 |
Total Money Market (Cost $106,354) | 106,354 | |
Total Investment Portfolio - 100.0% (Cost $174,934,229) (a) | 174,934,229 |
* 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 June 30, 2003.
(a) The cost for federal income tax purposes was $174,934,229.
(b) Security incorporates a letter of credit or line of credit from a major bank.
(c) Bond is insured by one of these companies:
AMBAC | AMBAC Assurance Corp. |
FGIC | Financial Guaranty Insurance Company |
FHA | Federal Housing Administration |
FHLMC | Federal Home Loan Mortgage Corp. |
FNMA | Federal National Mortgage Association |
FSA | Financial Security Assurance |
MBIA | Municipal Bond Investors Assurance |
The accompanying notes are an integral part of the financial statements.
Statements of Assets and Liabilities as of June 30, 2003 (Unaudited) | ||
Assets | NY Tax Free Money Fund Investment | Tax Free Money Fund Investment |
Investments in securities, at amortized cost | $ 94,304,562 | $ 174,934,229 |
Cash | 162,806 | 596,218 |
Receivable for investments sold | 8,140,000 | 9,910,000 |
Interest receivable | 189,912 | 504,853 |
Receivable for Fund shares sold | - | 12,702,787 |
Other assets | 3,371 | - |
Total assets | 102,800,651 | 198,648,087 |
Liabilities | ||
Payable for investments purchased | 2,609,716 | 3,155,651 |
Dividends payable | 17,983 | 33,905 |
Payable for Fund shares redeemed | - | 12,599,461 |
Advisory fee payable | 6,970 | 17,777 |
Administration and service fees payable | 51,135 | 94,578 |
Other accrued expenses and payables | 48,759 | 19,676 |
Total liabilities | 2,734,563 | 15,921,048 |
Net assets, at value | $ 100,066,088 | $ 182,727,039 |
Net Assets | ||
Net assets consist of: Accumulated distributions in excess of net investment income | (79) | (102) |
Accumulated net realized gain (loss) | 13,935 | (21,976) |
Paid-in capital | 100,052,232 | 182,749,117 |
Net assets, at value | $ 100,066,088 | $ 182,727,039 |
Net Asset Value | ||
Net assets applicable to shares outstanding | $ 100,066,088 | $ 182,727,039 |
Shares outstanding, ($.001 par value per share, unlimited number of shares authorized) | 100,076,139 | 182,751,884 |
Net Asset Value, offering and redemption price per share (net assets divided by shares outstanding) | $ 1.00 | $ 1.00 |
The accompanying notes are an integral part of the financial statements.
Statements of Operations for the six months ended June 30, 2003 (Unaudited) | ||
Investment Income | NY Tax Free Money Fund Investment | Tax Free Money Fund Investment |
Income: Interest | $ 631,633 | $ 1,021,806 |
Expenses: Administration and service fees | 325,876 | 517,946 |
Advisory fee | 81,468 | 129,486 |
Auditing | 5,382 | 8,932 |
Legal | 2,054 | 4,667 |
Trustees' fees and expenses | 2,692 | 2,746 |
Reports to shareholders | 15,466 | 4,154 |
Registration fees | 15,425 | 5,829 |
Other | 4,350 | 2,183 |
Total expenses, before expense reductions | 452,713 | 675,943 |
Expense reductions | (45,355) | (28,510) |
Total expenses, after expense reductions | 407,358 | 647,433 |
Net investment income | 224,275 | 374,373 |
Net realized gain (loss) on investment transactions | 1,368 | 8,716 |
Net increase (decrease) in net assets resulting from operations | $ 225,643 | $ 383,089 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets - NY Tax Free Money Fund Investment | ||
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2003 (Unaudited) | Year Ended December 31, 2002 |
Operations: Net investment income | $ 224,275 | $ 719,666 |
Net realized gain (loss) on investment transactions | 1,368 | 23,104 |
Net increase (decrease) in net assets resulting from operations | 225,643 | 742,770 |
Distributions to shareholders from: Net investment income | (224,354) | (719,439) |
Fund share transactions: Proceeds from shares sold | 196,389,189 | 426,152,132 |
Reinvestment of distributions | 73,831 | 180,618 |
Cost of shares redeemed | (208,935,712) | (423,557,497) |
Net increase (decrease) in net assets from Fund share transactions | (12,472,692) | 2,775,253 |
Increase (decrease) in net assets | (12,471,403) | 2,798,584 |
Net assets at beginning of period | 112,537,491 | 109,738,907 |
Net assets at end of period (including accumulated distributions in excess of net investment income of $79 at June 30, 2003) | $ 100,066,088 | $ 112,537,491 |
Other Information | ||
Shares outstanding at beginning of period | 112,548,831 | 109,773,578 |
Shares sold | 196,389,189 | 426,152,132 |
Shares issued to shareholders in reinvestment of distributions | 73,831 | 180,618 |
Shares redeemed | (208,935,712) | (423,557,497) |
Net increase (decrease) in Fund shares | (12,472,692) | 2,775,253 |
Shares outstanding at end of period | 100,076,139 | 112,548,831 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets - Tax Free Money Fund Investment | ||
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2003 (Unaudited) | Year Ended December 31, 2002 |
Operations: Net investment income | $ 374,373 | $ 1,220,186 |
Net realized gain (loss) on investment transactions | 8,716 | (828) |
Net increase (decrease) in net assets resulting from operations | 383,089 | 1,219,358 |
Distributions to shareholders from: Net investment income | (374,475) | (1,219,936) |
Fund share transactions: Proceeds from shares sold | 519,782,125 | 1,059,169,617 |
Reinvestment of distributions | 91,852 | 143,725 |
Cost of shares redeemed | (503,020,378) | (1,057,070,961) |
Net increase (decrease) in net assets from Fund share transactions | 16,853,599 | 2,242,381 |
Increase (decrease) in net assets | 16,862,213 | 2,241,803 |
Net assets at beginning of period | 165,864,826 | 163,623,023 |
Net assets at end of period (including accumulated distributions in excess of net investment income of $102 at June 30, 2003) | $ 182,727,039 | $ 165,864,826 |
Other Information | ||
Shares outstanding at beginning of period | 165,898,285 | 163,655,904 |
Shares sold | 519,782,125 | 1,059,169,617 |
Shares issued to shareholders in reinvestment of distributions | 91,852 | 143,725 |
Shares redeemed | (503,020,378) | (1,057,070,961) |
Net increase (decrease) in Fund shares | 16,853,599 | 2,242,381 |
Shares outstanding at end of period | 182,751,884 | 165,898,285 |
The accompanying notes are an integral part of the financial statements.
NY Tax Free Money Fund Investment
Years Ended | 2003a | 2002 | 2001b | 2000b | 1999b | 1998b |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from investment operations: | ||||||
Net investment income | .002 | .006 | .02 | .03 | .02 | .03 |
Net realized and unrealized gain (loss) on investment transactionsc | - | - | - | - | - | - |
Total from investment operations | .002 | .006 | .02 | .03 | .02 | .03 |
Less distributions from: Net investment income | (.002) | (.006) | (.02) | (.03) | (.02) | (.03) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%) | .21** | .65 | 1.89 | 3.23 | 2.41 | 2.66 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 100 | 113 | 110 | 86 | 74 | 78 |
Ratio of expenses before expense reductions (%) | .83* | .82 | .80 | .86 | .84 | .85 |
Ratio of expenses after expense reductions (%) | .75* | .75 | .75 | .75 | .75 | .75 |
Ratio of net investment income (%) | .41* | .65 | 1.86 | 3.19 | 2.37 | 2.63 |
a For the six months ended June 30, 2003 (Unaudited). b The Financial Highlights prior to April 27, 2001 include the Fund's information as a feeder fund to the NY Tax Free Money Portfolio for the respective periods. c Amount is less than $.0005 per share. * Annualized ** Not annualized |
Tax Free Money Fund Investment
Years Ended | 2003a | 2002 | 2001b | 2000b | 1999b | 1998b |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from investment operations: | ||||||
Net investment income | .002 | .007 | .02 | .03 | .02 | .03 |
Net realized and unrealized gain (loss) on investment transactionsc | - | - | - | - | - | - |
Total from investment operations | .002 | .007 | .02 | .03 | .02 | .03 |
Less distributions from: Net investment income | (.002) | (.007) | (.02) | (.03) | (.02) | (.03) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%) | .22** | .72 | 2.08 | 3.35 | 2.54 | 2.75 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 183 | 166 | 164 | 222 | 128 | 201 |
Ratio of expenses before expense reductions (%) | .78* | .80 | .79 | .82 | .80 | .83 |
Ratio of expenses after expense reductions (%) | .75* | .75 | .75 | .75 | .75 | .75 |
Ratio of net investment income (loss) (%) | .43* | .72 | 2.11 | 3.30 | 2.50 | 2.71 |
a For the six months ended June 30, 2003 (Unaudited). b The Financial Highlights prior to April 27, 2001 include the Fund's information as a feeder fund to the Tax Free Money Portfolio for the respective periods. c Amount is less than $.005 per share. * Annualized ** Not annualized |
Note 1-Organization and Significant Accounting Policies
A. Organization
Scudder Advisor Funds (formerly BT Investment Funds) (the "Trust") is registered under the Investment Company Act of 1940 (the "1940 Act"), as amended, as an open-end, diversified management investment company organized as a Massachusetts business trust. NY Tax Free Money Fund Investment and Tax Free Money Fund Investment (each a "Fund," and collectively, the "Funds") are two of the funds the Trust offers to investors.
Each Fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Funds in the preparation of their financial statements.
B. 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.
C. 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 December 31, 2002 the Tax Free Money Fund Investment had a net tax basis capital loss carryforward of approximately $24,000 which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until December 31, 2004 ($100), December 31, 2005 ($5,700), December 31, 2007 ($5,500) and December 31, 2008 ($12,700), the respective expiration dates, whichever occurs first.
In addition, from November 1, 2002 through December 31, 2002, the Tax Free Money Fund Investment incurred approximately $6,800 of net realized losses. As permitted by tax regulations, the Tax Free Money Fund Investment intends to elect to defer these losses and treat them as arising in the year ending December 31, 2003.
D. Distributions of Income
All of the net investment income of each Fund is declared as a daily dividend and is distributed to shareholders monthly.
Permanent book and tax differences relating to shareholder distributions will result in reclassifications to paid-in capital. Temporary book and tax differences will reverse in a subsequent period. There were no significant book to tax differences for the Funds.
At December 31, 2002, the Funds' components of distributable earnings (accumulated losses) on a tax-basis are as follows:
NY Tax Free Money Fund Investment | Tax Free Money Fund Investment | |
Undistributed tax-exempt income | $ 78 | $ 101 |
Undistributed taxable income | $ 12,567 | $ - |
Capital loss carryforwards | $ - | $ (24,000) |
In addition, during the year ended December 31, 2002, the tax character of distributions paid to shareholders by the Funds is summarized as follows:
NY Tax Free Money Fund Investment | 2002 |
Distributions from tax-exempt income | $ 719,439 |
Tax Free Money Fund Investment | |
Distributions from tax-exempt income | $ 1,219,936 |
For tax purposes short-term capital gains distributions are considered ordinary income distributions.
The tax character of current year distributions will be determined at the end of the current fiscal year.
E. Other
Investment transactions are accounted for on the trade date. Interest income is recorded on the accrual basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. All discounts and premiums are accreted/amortized for both tax and financial reporting purposes. Expenses directly attributed to a fund are charged to that fund, while expenses which are attributed to the Trust are allocated among the funds in the Trust on the basis of relative net assets.
Note 2-Fees and Transactions with Affiliates
Deutsche Asset Management, Inc. ("DeAM, Inc." or the "Advisor") is the Advisor for each Fund and Investment Company Capital Corp. ("ICCC" or the "Administrator") is the Administrator for each Fund, both an indirect, wholly owned subsidiary of Deutsche Bank AG. Under the Advisory Agreement, each Fund pays the Advisor an annual fee based on its average daily net assets which is calculated daily and paid monthly at the annual rate of 0.15%.
For the six months ended June 30, 2003, the Advisor and Administrator contractually agreed to waive their fees and/or reimburse expenses of each Fund, to the extent necessary, to limit expenses to 0.75% of the average daily net assets of each Fund. Accordingly, for the six months ended June 30, 2003 each Fund did not impose a portion of its Advisory fee as follows:
Advisory Fee | Amount Waived | Effective Rate | |
NY Tax Free Money Fund Investment | $ 81,468 | $ 45,355 | .07% |
Tax Free Money Fund Investment | $ 129,486 | $ 28,510 | .12% |
ICCC serves as Administrator and receives a fee ("Administration and service fee") based on each Fund's average daily net assets which is calculated daily and paid monthly at the annual rate of 0.60%.
Effective April 11, 2003, State Street Bank and Trust Company ("State Street") is each Fund's custodian. Prior to April 11, 2003, Deutsche Bank Trust Company Americas, an affiliate of the Advisor and Administrator, served as the Funds' custodian.
Certain officers and a Trustee of the Funds are also officers or Trustees of ICCC or affiliated with Deutsche Bank AG. These persons are not paid by the Funds for serving in these capacities. The Funds pay each Trustee not affiliated with Deutsche Bank AG retainer fees plus specified amounts for attended board and committee meetings.
Note 3-Line of Credit Agreement
Prior to April 11, 2003, the Funds and several other affiliated funds (the "Participants") shared in a $200 million revolving credit facility administered by a syndicate of banks for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants were charged an annual commitment fee which was allocated, pro rata based upon net assets, among each of the Participants. Interest was calculated at the Federal Funds Rate plus 0.625 percent.
Effective April 11, 2003, the Funds entered into a new revolving credit facility administered by J.P. Morgan Chase Bank that provides $1.25 billion of credit coverage. The new revolving credit facility covers the funds and portfolios advised or administered by DeAM, Inc. or its affiliates. Interest is calculated at the Federal Funds Rate plus 0.5 percent. The Funds may borrow up to a maximum of 5 percent of their net assets under the agreement.
Legal Counsel | Willkie Farr & Gallagher787 Seventh Avenue |
Shareholder Service Agent and Transfer Agent | Scudder Investments Service Company811 Main Street |
Custodian | State Street Bank and Trust Company225 Franklin Street |
Independent Auditors | PricewaterhouseCoopers LLP160 Federal Street |
Principal Underwriter | If you have questions, comments or complaints, contact: Scudder Distributors, Inc.222 South Riverside Plaza |
This privacy statement is issued by the Deutsche Asset Management mutual funds, Scudder Financial Services, Inc., Scudder Investor Services, Inc., Scudder Trust Company and Scudder Distributors, Inc.
We consider privacy fundamental to our client relationships and adhere to the policies and practices described below to protect current and former clients' information.
We never sell customer lists or individual client 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 Web sites, and through transactions with us or our affiliates. To be able to serve our clients, information is shared with affiliates and other companies. Specifically, we disclose client information to parties that perform various services for us, such as transfer agents, custodians, and broker-dealers. Limited information also may be shared with affiliates, with companies with which we have joint marketing agreements, or with other parties as required by law. Any organization receiving client information may only use it for the purpose designated by the entities listed above.
If you have questions about our privacy policy, please contact us at (800) 730-1313, or write to:
Deutsche Asset Management
Attention: Correspondence
P.O. Box 219415
Kansas City, MO 64121-9415
July 2002
Notes |
Notes |
Notes |
Notes |
ITEM 2. CODE OF ETHICS. Not currently applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not currently applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not currently applicable. ITEM 5. [RESERVED] ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) The Chief Executive and Financial Officers concluded that the Registrant's Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.Form N-CSR Item F SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Registrant: Deutsche New York Tax Free Money Fund By: /s/Richard T. Hale --------------------------- Richard T. Hale Chief Executive Officer Date: August 19, 2003 --------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Registrant: Deutsche New York Tax Free Money Fund By: /s/Richard T. Hale --------------------------- Chief Executive Officer Date: August 19, 2003 --------------------------- By: /s/Charles A. Rizzo --------------------------- Charles A. Rizzo Chief Financial Officer Date: August 19, 2003 --------------------------- Form N-CSR Item F SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Registrant: Deutsche Tax Free Money Fund By: /s/Richard T. Hale --------------------------- Chief Executive Officer Date: August 19, 2003 --------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Registrant: Deutsche Tax Free Money Fund By: /s/Richard T. Hale --------------------------- Chief Executive Officer Date: August 19, 2003 --------------------------- By: /s/Charles A. Rizzo --------------------------- Charles A. Rizzo Chief Financial Officer Date: August 19, 2003 ---------------------------