UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSR
Investment Company Act file number | 811-04760 |
DWS ADVISOR FUNDS
(FORMERLY SCUDDER 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: (212) 454-7190
Paul Schubert
345 Park Avenue
New York, NY 10154
(Name and Address of Agent for Service)
Date of fiscal year end: | 12/31 |
Date of reporting period: | 12/31/05 |
ITEM 1. | REPORT TO STOCKHOLDERS |
Tax Free Money Fund Investment
Contents |
Portfolio Management Review |
Q: Will you discuss the market environment for the funds during the year ended December 31, 2005? | |
A: During the year ended December 31, 2005, the US Federal Reserve (the Fed) continued its recent policy of increasing short-term interest rates in an attempt to undo the easing of monetary policy (i.e., the lowering of interest rates) that occurred through June 2004. In eight increments of 0.25%, the policymakers raised the federal funds rate — the interest rate banks charge when they lend each other money overnight — to 4.25%. |
Despite these increases in the federal funds rate, longer-term yields remained low, creating a yield curve — an economic graph with a line going from left to right, showing how high or low yields are from the shortest to the longest maturities — that was atypically flat. (Typically, the line rises from left to right as investors who are willing to tie up their money for a longer period of time are rewarded with higher yields.) | |
Throughout the year, the Fed repeatedly said that its monetary policy remained “accommodative” to economic growth and that risks in the overall economy between inflation and deflation appeared to be balanced. | |
Indeed, over the period, the US economy showed resiliency despite two devastating hurricanes and continual increases in energy prices. As the year began, monthly job growth was the most important economic indicator for money markets. However, the focus gradually shifted to inflation, with economists and investors watching carefully for any signs of an increase. Going forward, the markets will likely watch for any changes in policy from incoming Fed Chairman Ben S. Bernanke. | |
At the end of December 2005, the one-year London Interbank Offered Rate (LIBOR) — the rate of interest at which banks borrow large volumes of funds from other banks in the international market, and the most widely used industry standard for measuring one-year money market rates — was at 4.84%, close to a four-year high. The premium level of the LIBOR (which is set by the market) over the federal funds rate (which is set by the Fed) was 4.25%, representing the market’s concern that the Fed may have to continue raising short-term interest rates to keep the economy’s growth moderate and prevent inflation. |
Q: How did the funds perform over its most recent fiscal year? | |
A: For the period ended December 31, 2005, the funds registered favorable performance. NY Tax Free Money Fund Investment achieved its stated objective of providing a high level of current income exempt from Federal and New York income taxes consistent with liquidity and the preservation of capital. Tax Free Money Fund Investment achieved its stated objective of providing a high level of current income exempt from Federal income tax consistent with liquidity and the preservation of capital. | |
Q: In light of market conditions during the period, what has been the strategy for the funds? | |
A: Over the period, we continued to focus on the highest-quality investments for the funds while seeking competitive yields across the municipal investment spectrum. We also maintained a cautious stance by targeting an average maturity similar to our peers. Each year, during “tax season,” tax-free money fund investors withdraw substantial amounts of money from the market to pay their tax bills. This year, tax-related selling pressure extended for a longer period than usual; we saw substantial withdrawals from March 2005 through May 2005. As a result of these sales, floating-rate issuers were forced to raise their rates to attract new investors. Our strategy during this time, which significantly boosted performance, was to increase the fund’s floating-rate position to take advantage of the increase in rates. The interest rate of floating-rate securities adjusts periodically based on indices such as the Bond Market Association Index of Variable Rate Demand Notes, which is a weekly high-grade market index consisting of seven-day tax-exempt variable rate demand notes produced by Municipal Market Data Group’s database of more than 10,000 active issues. Because the interest rates of these instruments adjust as market conditions change, they provide flexibility in an uncertain interest rate environment. |
7-Day Current Yield — New York Tax Free Money Fund Investment |
7-day | ||||||
current | ||||||
yield | ||||||
December 31, 2005 | 2.62%* | |||||
December 31, 2004 | 1.16%* | |||||
7-Day Current Yield — Tax Free Money Fund Investment |
7-day | ||||||
current | ||||||
yield | ||||||
December 31, 2005 | 2.64%* | |||||
December 31, 2004 | 1.18%** | |||||
Q: What detracted from performance during the period? | |
A: In December, we kept additional cash on hand — as we do each year — to meet any tax-related redemptions as well as investors’ year-end liquidity needs. Keeping a larger percentage of assets in overnight liquid positions detracted somewhat from yield and total return. |
Q: Will you describe your management philosophy? | |
A: We continue our insistence on the highest credit quality within the funds. We also plan to maintain our conservative investment strategies and standards. We continue to apply a careful approach to investing on behalf of the funds and to seek a competitive yield for our shareholders. |
Information About Each Fund’s Expenses |
n | 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. | |
n | 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. |
NY Tax Free Money Fund Investment | ||||||
Expenses and Value of a $1,000 Investment for the six months ended December 31, 2005 | ||||||
Actual Fund Return | ||||||
Beginning Account Value 7/1/05 | $ | 1,000.00 | ||||
Ending Account Value 12/31/05 | $ | 1,009.60 | ||||
Expenses Paid per $1,000* | $ | 3.75 | ||||
Hypothetical 5% Fund Return | ||||||
Beginning Account Value 7/1/05 | $ | 1,000.00 | ||||
Ending Account Value 12/31/05 | $ | 1,021.48 | ||||
Expenses Paid per $1,000* | $ | 3.77 | ||||
* | 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 the number of days in the most recent six-month period, then divided by 365. |
Annualized Expense Ratio | ||||||
NY Tax Free Money Fund Investment | .74% | |||||
Tax Free Money Fund Investment | ||||||
Expenses and Value of a $1,000 Investment for the six months ended December 31, 2005 | ||||||
Actual Fund Return | ||||||
Beginning Account Value 7/1/05 | $ | 1,000.00 | ||||
Ending Account Value 12/31/05 | $ | 1,009.80 | ||||
Expenses Paid per $1,000* | $ | 3.80 | ||||
Hypothetical 5% Fund Return | ||||||
Beginning Account Value 7/1/05 | $ | 1,000.00 | ||||
Ending Account Value 12/31/05 | $ | 1,021.42 | ||||
Expenses Paid per $1,000* | $ | 3.82 | ||||
* | 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 the number of days in the most recent six-month period, then divided by 365. |
Annualized Expense Ratio | ||||||
Tax Free Money Fund Investment | .75% | |||||
Portfolio Summary |
Asset Allocation | 12/31/05 | 12/31/04 | ||||||||
Municipal Investments | 100% | 100% | ||||||||
NY Tax Free Money Fund Investment | 26 days | 9 days | ||||||||
iMoneyNet State Specific Retail Money Funds Average** | 27 days | 31 days | ||||||||
** | Category consists of only retail state tax-free and municipal money market funds. |
Asset Allocation | 12/31/05 | 12/31/04 | ||||||||
Municipal Investments | 100% | 100% | ||||||||
Tax Free Money Fund Investment | 34 days | 28 days | ||||||||
iMoneyNet National Retail Tax Free Money Funds Average* | 31 days | 34 days | ||||||||
* | Category consists of all national tax-free and municipal retail funds. Portfolio holdings of tax-free funds include Rated and Unrated Demand Notes, Rated and Unrated General Market Notes, Commercial Paper, Put Bonds — 6 months & less, Put Bonds — over 6 months, AMT Paper, and Other Tax-Free holdings. |
Investment Portfolios | as of December 31, 2005 |
Principal | |||||||||||
NY Tax Free Money Fund Investment | Amount ($) | Value ($) | |||||||||
Municipal Bonds and Notes 98.5% | |||||||||||
New York 93.1% | |||||||||||
Albany, NY, Industrial Development Agency, Civic Facility Revenue, University of Albany Foundation Student Housing, Series A, 3.55% *, 11/1/2032 (a) | 285,000 | 285,000 | |||||||||
Erie County, NY, Industrial Development Agency, Civic Facility Revenue, Suburban Adult Services, 3.59% *, 6/1/2022, KeyBank NA (b) | 3,880,000 | 3,880,000 | |||||||||
Islip, NY, Union Free School District 002, Tax Anticipation Notes, 3.5%, 6/29/2006 | 3,250,000 | 3,262,413 | |||||||||
Long Island, NY, Power Authority, Electric System Revenue, Series 1A, 3.56% *, 5/1/2033, Bayerische Landesbank (b) | 2,200,000 | 2,200,000 | |||||||||
New York, Jay Street Development Corp., Centers Facility Lease Revenue, Series A-1, 3.47% *, 5/1/2022, Depfa Bank PLC (b) | 1,915,000 | 1,915,000 | |||||||||
New York, Metropolitan Transportation Authority Revenue: | |||||||||||
Series B-16, 144A, 3.53% *, 11/15/2027 | 100,000 | 100,000 | |||||||||
Series 1040, 144A, 3.54% *, 11/15/2020 (a) | 1,100,000 | 1,100,000 | |||||||||
Series 848-D, 144A, 3.55% *, 11/15/2021 (a) | 2,490,500 | 2,490,500 | |||||||||
New York, State Dormitory Authority Revenue: | |||||||||||
Series A-09, 144A, 2.78% *, 5/15/2031 (a) | 1,995,000 | 1,995,000 | |||||||||
3.09%, 1/12/2006 | 500,000 | 500,000 | |||||||||
3.1%, 1/11/2006 | 3,685,000 | 3,685,000 | |||||||||
Series B09, 144A, 3.53% *, 3/15/2023 (a) | 350,000 | 350,000 | |||||||||
Series 1191, 144A, 3.55% *, 5/15/2013 (a) | 2,800,000 | 2,800,000 | |||||||||
New York, State Dormitory Authority Revenue, Mental Health Services, Series D-2A, 3.56% *, 2/15/2031 (a) | 200,000 | 200,000 | |||||||||
New York, State Dormitory Authority Revenue, North Shore-Long Island Jewish, Series A, 3.47% *, 11/1/2034, Citibank NA (b) | 325,000 | 325,000 | |||||||||
New York, State General Obligation: | |||||||||||
2.8% *, 1/5/2006 | 2,000,000 | 2,000,000 | |||||||||
Series B, 2.9% *, 3/15/2030, Dexia Credit Local France (b) | 1,100,000 | 1,100,000 | |||||||||
Series H-3, 3.5% *, 3/1/2034, Bank of New York (b) | 1,000,000 | 1,000,000 | |||||||||
New York, State Housing Finance Agency Revenue, Historic Front Street, Series A, 3.57% *, 11/1/2036, Bank of New York (b) | 2,000,000 | 2,000,000 | |||||||||
New York, State Housing Finance Agency, Service Contract Revenue, Series D, 3.52% *, 3/15/2026, State Street Bank & Trust (b) | 1,600,000 | 1,600,000 | |||||||||
New York, State Power Authority, 3.1%, 1/11/2006 | 2,000,000 | 2,000,000 | |||||||||
New York, State Power Authority Revenue & General Purpose, 2.8% *, 3/1/2016 | 1,000,000 | 1,000,000 | |||||||||
New York, State Thruway Authority, Personal Income Tax Revenue, Series PT-3027, 144A, 3.54% *, 3/15/2025 (a) | 3,285,000 | 3,285,000 |
Principal | |||||||||||
NY Tax Free Money Fund Investment | Amount ($) | Value ($) | |||||||||
New York, Tobacco Settlement Financing Corp.: | |||||||||||
Series R-2033, 144A, 3.56% *, 6/1/2021 (a) | 1,970,000 | 1,970,000 | |||||||||
Series R-6500, 144A, 3.56% *, 6/1/2021 (a) | 2,235,000 | 2,235,000 | |||||||||
New York City, NY, Industrial Development Agency, Civic Facility Revenue, Abraham Joshua Heschel Project, 3.58% *, 4/1/2032, Allied Irish Bank PLC (b) | 1,505,000 | 1,505,000 | |||||||||
New York City, NY, Municipal Water Finance Authority, Water & Sewer System Revenue, Series F-2, 3.56% *, 6/15/2033 | 2,450,000 | 2,450,000 | |||||||||
New York City, NY, Transitional Finance Authority Revenue, Series A-40, 144A, 3.53% *, 11/1/2026 (a) | 970,000 | 970,000 | |||||||||
New York City, NY, Transitional Finance Authority Revenue, Future Tax Secured: | |||||||||||
Series A-1, 3.55% *, 11/15/2022 | 45,000 | 45,000 | |||||||||
Series A, 3.55% *, 2/15/2030 | 3,300,000 | 3,300,000 | |||||||||
New York City, NY, Transitional Finance Authority Revenue, NYC Recovery: | |||||||||||
Series 3C, 3.48% *, 11/1/2022 | 200,000 | 200,000 | |||||||||
Series 1A, 3.52% *, 11/1/2022 | 240,000 | 240,000 | |||||||||
New York City, NY, Transitional Finance Authority, Stars Certificate, Series 2003-7, 144A, 3.54% *, 2/1/2029 | 2,400,000 | 2,400,000 | |||||||||
New York, NY, General Obligation: | |||||||||||
Series A-3, 3.52% *, 8/1/2031, BNP Paribas (b) | 1,565,000 | 1,565,000 | |||||||||
Series 1010, 144A, 3.55% *, 8/1/2013 (a) | 3,780,000 | 3,780,000 | |||||||||
Series H-6, 3.55% *, 3/1/2034, Fleet National Bank (b) | 600,000 | 600,000 | |||||||||
Series F, 7.0%, 2/1/2006 | 1,870,000 | 1,876,470 | |||||||||
New York, NY, Triborough Bridge & Tunnel Authority Revenue: | |||||||||||
Series A, 3.52% *, 1/1/2031 (a) | 290,000 | 290,000 | |||||||||
Series B-13, 144A, 3.53% *, 11/15/2021 (a) | 2,075,000 | 2,075,000 | |||||||||
Series R-2013, 3.55% *, 11/15/2021 (a) | 300,000 | 300,000 | |||||||||
Series B-2, 144A, 3.55% *, 1/1/2032 | 300,000 | 300,000 | |||||||||
Onondaga County, NY, Industrial Development Agency, Civic Facility Revenue, YMCA of Greater Syracuse, Series A, 3.59% *, 11/1/2025, HSBC Bank PLC (b) | 3,700,000 | 3,700,000 | |||||||||
Otsego County, NY, Industrial Development Agency, Civic Facility Revenue, Noonan Community Service Corp. Project, Series A, 3.58% *, 3/1/2025, Wilber National Bank (b) | 1,435,000 | 1,435,000 | |||||||||
Rensselaer County, NY, Industrial Development Agency, Civic Facility Revenue, Hawthorne Ridge Project, 3.48% *, 10/30/2035, Citizens Bank NA (b) | 2,250,000 | 2,250,000 | |||||||||
Sachem, NY, Holbrook Central School District, Tax Anticipation Notes, 3.75%, 6/22/2006 | 3,000,000 | 3,014,732 | |||||||||
Schenectady County, NY, Industrial Development Agency, Civic Facility Revenue, Sunnyview, Series B, 3.54% *, 8/1/2033, KeyBank NA (b) | 2,300,000 | 2,300,000 | |||||||||
Schoharie County, NY, Industrial Development Agency, Civic Facility Revenue, Bassett Hospital Project, Series A, 3.59% *, 2/1/2021, KeyBank NA (b) | 200,000 | 200,000 |
Principal | ||||||||||
NY Tax Free Money Fund Investment | Amount ($) | Value ($) | ||||||||
Seneca County, NY, Industrial Development Agency, Solid Waste Disposal Revenue, Seneca Meadows, Inc. Project, 3.56% *, 10/1/2035, Bank of America NA (b) | 3,250,000 | 3,250,000 | ||||||||
Yates County, NY, Industrial Development Agency, Civic Facility Revenue, Series B, 3.54% *, 9/1/2015, KeyBank NA (b) | 1,575,000 | 1,575,000 | ||||||||
Yonkers, NY, Industrial Development Agency, Civic Facility Revenue, 3.65% *, 7/1/2021, Bank of New York (b) | 1,000,000 | 1,000,000 | ||||||||
83,899,115 | ||||||||||
Puerto Rico 5.4% | ||||||||||
ABN AMRO, Munitops Certificates Trust, Series 2000-17, 144A, 3.51% *, 10/1/2008 | 2,815,000 | 2,815,000 | ||||||||
Commonwealth of Puerto Rico, General Obligation, Series 813-D, 144A, 3.53% *, 7/1/2020 (a) | 2,070,000 | 2,070,000 | ||||||||
4,885,000 |
% of | ||||||||||
Net Assets | Value ($) | |||||||||
Total Investment Portfolio (Cost $88,784,115) † | 98.5 | 88,784,115 | ||||||||
Other Assets and Liabilities, Net | 1.5 | 1,353,132 | ||||||||
Net Assets | 100.0 | 90,137,247 |
* | 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 December 31, 2005. | |
† | The cost for federal income tax purposes was $88,784,115. | |
(a) | Bond is insured by one of these companies: |
As a % of Total | ||||
Insurance Coverage | Investment Portfolio | |||
Ambac Financial Group | 7.7 | |||
Financial Guaranty Insurance Company | 4.4 | |||
Financial Security Assurance, Inc. | 8.3 | |||
MBIA Corp. | 9.1 | |||
(b) | Security incorporates a letter of credit from a major bank. |
Investment Portfolios | as of December 31, 2005 |
Principal | ||||||||||
Tax Free Money Fund Investment | Amount ($) | Value ($) | ||||||||
Municipal Bonds and Notes 101.2% | ||||||||||
California 9.1% | ||||||||||
California, Community College Financing Authority, Series A, 4.0%, 6/30/2006 (a) | 1,000,000 | 1,006,632 | ||||||||
California, Golden State Tobacco Securitization Corp., Tobacco Settlement Revenue, Series R-411CE, 144A, 3.57% *, 6/1/2045 | 4,000,000 | 4,000,000 | ||||||||
California, Municipal Finance Authority, Pollution Control Revenue, Chevron USA, Inc. Project, 3.7% *, 6/1/2025 | 1,000,000 | 1,000,000 | ||||||||
California, School Cash Reserve Program Authority, Series A, 4.0%, 7/6/2006 | 1,500,000 | 1,510,426 | ||||||||
California, State Department of Water Resources, Power Supply Revenue, Series C-9, 3.45% *, 5/1/2022, Citibank NA (b) | 5,315,000 | 5,315,000 | ||||||||
California, State General Obligation, Series B-6, 3.15% *, 5/1/2040, KBC Bank NV (b) | 1,000,000 | 1,000,000 | ||||||||
Los Angeles County, CA, Tax & Revenue Anticipation Notes, Series A, 4.0%, 6/30/2006 | 2,000,000 | 2,014,034 | ||||||||
15,846,092 | ||||||||||
Colorado 4.1% | ||||||||||
ABN AMRO, Munitops Certificates Trust, Series 2005-30, 144A, 3.55% *, 6/1/2013 (a) | 3,000,000 | 3,000,000 | ||||||||
Adams & Weld Counties, CO, Brighton School District No. 27J, Series R-6514, 144A, 3.56% *, 12/1/2024 (a) | 1,990,000 | 1,990,000 | ||||||||
Denver, CO, City & County Economic Development Revenue, Western Stock Show Project, 3.6% *, 7/1/2029, Bank One Colorado NA (b) | 2,155,000 | 2,155,000 | ||||||||
7,145,000 | ||||||||||
District of Columbia 1.0% | ||||||||||
District of Columbia, General Obligation, Core City, 3.6% *, 3/1/2028, Bank of America NA (b) | 1,650,000 | 1,650,000 | ||||||||
Florida 0.7% | ||||||||||
Tampa, FL, Health Care Facilities Revenue, Lifelink Foundation, Inc. Project, 3.55% *, 8/1/2022, SunTrust Bank (b) | 1,200,000 | 1,200,000 | ||||||||
Georgia 3.3% | ||||||||||
Athens-Clarke County, GA, University Government Development Authority Revenue, University of Georgia Athletic Association, Series B, 3.74% *, 7/1/2035, Bank of America NA (b) | 1,950,000 | 1,950,000 | ||||||||
Burke County, GA, Development Authority, Pollution Control Revenue, Oglethorpe Power Corp., 3.75% *, 1/1/2021 (a) | 700,000 | 700,000 | ||||||||
Cobb County, GA, Housing Authority, Multi-Family Housing Revenue, Post Mill Project, 3.54% *, 6/1/2025 | 1,500,000 | 1,500,000 | ||||||||
Roswell, GA, Housing Authority, Multi-Family Revenue, Post Canyon Project, 3.54% *, 6/1/2025 | 1,600,000 | 1,600,000 | ||||||||
5,750,000 |
Principal | |||||||||||
Tax Free Money Fund Investment | Amount ($) | Value ($) | |||||||||
Illinois 12.2% | |||||||||||
Chicago, IL, General Obligation, Series Z-10, 144A, 3.59% *, 6/29/2029 (a) | 3,100,000 | 3,100,000 | |||||||||
Du Page County, IL, Benedictine University Building Project, 3.5% *, 7/1/2024, LaSalle Bank NA (b) | 7,400,000 | 7,400,000 | |||||||||
Illinois, Development Finance Authority Revenue, Goodman Theatre Project, 3.58% *, 12/1/2033, Bank One NA (b) | 675,000 | 675,000 | |||||||||
Illinois, Educational Facilities Authority Revenue: | |||||||||||
3.0%, 4/4/2006 | 3,000,000 | 3,000,000 | |||||||||
3.2%, 5/3/2006 | 1,000,000 | 1,000,000 | |||||||||
Illinois, Finance Authority Revenue, Series PA-1286, 144A, 3.55% *, 11/15/2023 (a) | 3,500,000 | 3,500,000 | |||||||||
Will & Kendall Counties, IL, Community School District No. 202, Series R-4031, 144A, 3.56% *, 1/1/2023 (a) | 2,575,000 | 2,575,000 | |||||||||
21,250,000 | |||||||||||
Indiana 3.4% | |||||||||||
ABN AMRO, Munitops Certificates Trust, Series 2003-32, 144A, 3.56% *, 1/15/2012 (a) | 3,000,000 | 3,000,000 | |||||||||
Indiana, Transportation Finance Authority Highway Revenue: | |||||||||||
Series B-21, 144A, 3.54% *, 12/1/2022 (a) | 2,085,000 | 2,085,000 | |||||||||
Series 853, 144A, 3.55% *, 6/1/2017 (a) | 900,000 | 900,000 | |||||||||
5,985,000 | |||||||||||
Iowa 1.2% | |||||||||||
Iowa, Finance Authority Hospital Facility Revenue, Iowa Health Systems, Series B, 3.55% *, 7/1/2015 (a) | 2,100,000 | 2,100,000 | |||||||||
Kentucky 3.8% | |||||||||||
Boone County, KY, Pollution Control Revenue, Cincinnati Gas & Electric Co., Series A, 3.1% *, 8/1/2013, Calyon Bank (b) | 1,800,000 | 1,800,000 | |||||||||
Pendleton County, KY, 3.16%, 1/9/2006 | 2,000,000 | 2,000,000 | |||||||||
Somerset, KY, Blakley Family YMCA, Inc., Project, 3.57% *, 4/1/2015, Fifth Third Bank (b) | 2,770,000 | 2,770,000 | |||||||||
6,570,000 | |||||||||||
Maryland 1.5% | |||||||||||
Gaithersburg, MD, Economic Development Revenue, Asbury Methodist Village, 3.56% *, 1/1/2034, KBC Bank NV (b) | 2,545,000 | 2,545,000 | |||||||||
Michigan 5.0% | |||||||||||
ABN AMRO, Munitops Certificates Trust, Series 2003-3, 144A, 3.54% *, 1/1/2011 (a) | 1,465,000 | 1,465,000 | |||||||||
Detroit, MI, City School District, Series PT-1844, 144A, 3.54% *, 5/1/2011 (a) | 1,530,000 | 1,530,000 | |||||||||
Michigan, Higher Education Facilities Authority Revenue, Spring Arbor, 3.57% *, 11/1/2030, Comerica Bank (b) | 3,000,000 | 3,000,000 |
Principal | ||||||||||||
Tax Free Money Fund Investment | Amount ($) | Value ($) | ||||||||||
Michigan, Municipal Securities Trust Certificates, Series 9054-A, 144A, 3.58% *, 4/20/2011 | 1,900,000 | 1,900,000 | ||||||||||
Michigan, University of Michigan, Hospital Revenue, Series A-2, 3.75% *, 12/1/2024 | 200,000 | 200,000 | ||||||||||
Oakland University, MI, Michigan Revenue Bond, 3.55% *, 3/1/2031 (a) | 625,000 | 625,000 | ||||||||||
8,720,000 | ||||||||||||
Nevada 2.9% | ||||||||||||
Clark County, NV, Flood Control Revenue, 3.08%, 1/6/2006 | 5,000,000 | 5,000,000 | ||||||||||
New Jersey 2.6% | ||||||||||||
New Jersey, State Tax & Revenue Anticipation Notes, Series A, 4.0%, 6/23/2006 | 3,500,000 | 3,519,604 | ||||||||||
Salem County, NJ, Industrial Pollution Control, Financing Authority Revenue, E.I. Du Pont de Nemours and Co., 3.15% *, 3/1/2012 | 1,000,000 | 1,000,000 | ||||||||||
4,519,604 | ||||||||||||
New York 2.5% | ||||||||||||
New York, Metropolitan Transportation Authority Revenue, Series G-1, 3.45% *, 11/1/2026 (a) | 4,255,000 | 4,255,000 | ||||||||||
North Carolina 3.2% | ||||||||||||
North Carolina, Capital Educational Facilities, Finance Agency Revenue, Forsyth Country Day School, 3.55% *, 12/1/2031, Branch Banking & Trust (b) | 2,000,000 | 2,000,000 | ||||||||||
North Carolina, Medical Care Community, Retirement Facilities Revenue, 1st Mortgage, United Methodist: | ||||||||||||
Series B, 3.55% *, 10/1/2008, Branch Banking & Trust (b) | 2,500,000 | 2,500,000 | ||||||||||
Series B, 3.55% *, 10/1/2035, Branch Banking & Trust (b) | 1,000,000 | 1,000,000 | ||||||||||
5,500,000 | ||||||||||||
Ohio 4.1% | ||||||||||||
Cuyahoga County, OH, Hospital Revenue, Improvement Metrohealth System, 3.57% *, 2/1/2035, National City Bank (b) | 5,000,000 | 5,000,000 | ||||||||||
Ohio, State Higher Educational Facility Community Revenue, Pooled Program: | ||||||||||||
Series A, 3.61% *, 9/1/2020, Fifth Third Bank (b) | 605,000 | 605,000 | ||||||||||
Series C, 3.61% *, 9/1/2025, Fifth Third Bank (b) | 1,325,000 | 1,325,000 | ||||||||||
Salem, OH, Hospital Revenue, Salem Community, 3.58% *, 9/1/2035, JPMorgan Chase Bank (b) | 200,000 | 200,000 | ||||||||||
7,130,000 | ||||||||||||
Oklahoma 1.7% | ||||||||||||
Payne County, OK, Economic Development Authority, Student Housing Revenue, OSUF Phase III Project, 3.54% *, 7/1/2032 (a) | 3,000,000 | 3,000,000 |
Principal | ||||||||||
Tax Free Money Fund Investment | Amount ($) | Value ($) | ||||||||
Pennsylvania 5.0% | ||||||||||
Allegheny County, PA, Hospital Development Authority Revenue, UPMC Senior Living Corp., 3.51% *, 7/15/2028 | 2,075,000 | 2,075,000 | ||||||||
Lehigh County, PA, Industrial Development Authority, Pollution Control Revenue, 3.1% *, 6/1/2014, Rabobank Nederland (b) | 180,000 | 180,000 | ||||||||
Pennsylvania, State Higher Educational Facilities Authority Revenue, Drexel University, Series B, 3.51% *, 5/1/2033, Allied Irish Bank PLC (b) | 50,000 | 50,000 | ||||||||
Pennsylvania, State Higher Educational Facilities Authority Revenue, University Properties, Student Housing, Series A, 3.53% *, 8/1/2035, Citizens Bank of PA (b) | 4,565,000 | 4,565,000 | ||||||||
Pennsylvania, State Higher Educational Facilities Authority, Hospital Revenue, Series MT-042, 144A, 3.57% *, 1/1/2024 | 300,000 | 300,000 | ||||||||
Pennsylvania, State School District Revenue Lease, Public School Building Authority, Series A42, 144A, 2.85% *, 6/1/2028 (a) | 600,000 | 600,000 | ||||||||
Philadelphia, PA, Redevelopment Authority Revenue, Series R-392, 144A, 3.55% *, 4/15/2028 (a) | 1,000,000 | 1,000,000 | ||||||||
8,770,000 | ||||||||||
Puerto Rico 0.3% | ||||||||||
ABN AMRO, Munitops Certificates Trust, Series 2000-17, 144A, 3.51% *, 10/1/2008 | 520,000 | 520,000 | ||||||||
South Carolina 2.2% | ||||||||||
South Carolina, Jobs Economic Development Authority, Hospital Facilities Revenue, Sisters of Charity Hospitals, 3.56% *, 11/1/2032, Wachovia Bank NA (b) | 3,890,000 | 3,890,000 | ||||||||
Tennessee 2.2% | ||||||||||
Chattanooga, TN, Health Educational & Housing Facility Board Revenue, Catholic Health, Series C, 3.4% *, 5/1/2039 | 3,100,000 | 3,100,000 | ||||||||
Clarksville, TN, Public Building Authority Revenue, Pooled Financing Program, 3.75% *, 1/1/2033, Bank of America NA (b) | 700,000 | 700,000 | ||||||||
3,800,000 | ||||||||||
Texas 26.3% | ||||||||||
Arlington, TX, General Obligation, Series 760, 144A, 3.55% *, 2/15/2013 (a) | 2,995,000 | 2,995,000 | ||||||||
Corpus Christi, TX, Utility System Revenue, Series PT-1816, 144A, 3.56% *, 7/15/2010 (a) | 2,300,000 | 2,300,000 | ||||||||
Cypress-FairBanks, TX, Independent School District, Series PT-2512, 144A, 3.55% *, 2/15/2022 | 5,445,000 | 5,445,000 | ||||||||
Harris County, TX, Health Facilities Development Corp., Hospital Revenue, Series 2005-L15-D, 144A, 3.58% *, 2/15/2021 | 6,000,000 | 6,000,000 | ||||||||
Houston, TX, Series A, 2.86%, 1/12/2006 | 5,500,000 | 5,500,000 | ||||||||
Houston, TX, Utility Systems Revenue, 3.11%, 1/11/2006 | 2,000,000 | 2,000,000 | ||||||||
Houston, TX, Water & Sewer Systems Revenue, Star Certificates, Series 2003-14, 144A, 3.55% *, 6/1/2026 (a) | 495,000 | 495,000 |
Principal | ||||||||||
Tax Free Money Fund Investment | Amount ($) | Value ($) | ||||||||
McAllen, TX, Independent School District, Municipal Securities Trust Receipts, Series 61-A, 144A, 3.56% *, 2/15/2030 | 4,705,000 | 4,705,000 | ||||||||
Northside, TX, Independent School District, School Building, 2.85% *, 6/15/2035 | 2,000,000 | 2,000,000 | ||||||||
Texas, A & M University Revenue, Series 945, 144A, 3.55% *, 5/15/2013 | 1,455,000 | 1,455,000 | ||||||||
Texas, State Tax & Revenue Anticipation Notes, 4.5%, 8/31/2006 | 9,100,000 | 9,187,846 | ||||||||
Texas, University of Texas Revenue, 3.08%, 1/17/2006 | 2,750,000 | 2,750,000 | ||||||||
Travis County, TX, Health Facilities Development Corp., Retirement Facility Revenue, Querencia Barton Creek, Series C, 3.53% *, 11/15/2035, LaSalle Bank NA (b) | 800,000 | 800,000 | ||||||||
45,632,846 | ||||||||||
Washington 2.9% | ||||||||||
Port Tacoma, WA, State General Obligation, Core City, Series R-4036, 144A, 3.56% *, 12/1/2025 (a) | 1,840,000 | 1,840,000 | ||||||||
Spokane, WA, Public Facilities District Hotel, Motel & Sales Use Tax, Series R-2041, 144A, 3.56% *, 12/1/2023 (a) | 3,140,000 | 3,140,000 | ||||||||
4,980,000 |
% of | ||||||||||
Net Assets | Value ($) | |||||||||
Total Investment Portfolio (Cost $175,758,542) † | 101.2 | 175,758,542 | ||||||||
Other Assets and Liabilities, Net | (1.2 | ) | (2,035,306 | ) | ||||||
Net Assets | 100.0 | 173,723,236 |
* | 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 December 31, 2005. | |
† | The cost for federal income tax purposes was $175,758,542. | |
(a) | Bond is insured by one of these companies: |
As a % of Total | ||||
Insurance Coverage | Investment Portfolio | |||
Ambac Financial Group | 8.8 | |||
Financial Guaranty Insurance Company | 9.1 | |||
Financial Security Assurance, Inc. | 6.5 | |||
MBIA Corporation | 2.6 | |||
(b) | Security incorporates a letter of credit from a major bank. |
Financial Statements |
Statements of Assets and Liabilities as of December 31, 2005 |
NY Tax Free | Tax Free | |||||||||
Money Fund | Money Fund | |||||||||
Assets | Investment | Investment | ||||||||
Investments in securities, at amortized cost | $ | 88,784,115 | $ | 175,758,542 | ||||||
Cash | 130,509 | 183,326 | ||||||||
Receivable for Investments sold | 915,483 | 1,065,624 | ||||||||
Interest receivable | 555,309 | 1,015,940 | ||||||||
Other assets | 12,610 | 11,919 | ||||||||
Total assets | 90,398,026 | 178,035,351 | ||||||||
Liabilities | ||||||||||
Payable for investments purchased | — | 3,940,769 | ||||||||
Dividends payable | 153,169 | 221,307 | ||||||||
Administration and service fee payable | 48,514 | 93,196 | ||||||||
Accrued management fee | — | 5,174 | ||||||||
Other accrued expenses and payables | 59,096 | 51,669 | ||||||||
Total liabilities | 260,779 | 4,312,115 | ||||||||
Net assets, at value | $ | 90,137,247 | $ | 173,723,236 | ||||||
Net Assets | ||||||||||
Net assets consist of: | ||||||||||
Undistributed net investment income | 25,578 | 2,578 | ||||||||
Accumulated net realized gain (loss) | (322 | ) | (2,157 | ) | ||||||
Paid-in capital | 90,111,991 | 173,722,815 | ||||||||
Net assets, at value | $ | 90,137,247 | $ | 173,723,236 | ||||||
Net Asset Value | ||||||||||
Net assets applicable to shares outstanding | $ | 90,137,247 | $ | 173,723,236 | ||||||
Shares outstanding, ($.001 par value per share, unlimited number of shares authorized) | 90,134,456 | 173,721,896 | ||||||||
Net Asset Value, offering and redemption price per share (net assets divided by shares outstanding) | $ | 1.00 | $ | 1.00 | ||||||
Statements of Operations for the year ended December 31, 2005 |
NY Tax Free | Tax Free | |||||||||
Money | Money | |||||||||
Fund | Fund | |||||||||
Investment Income | Investment | Investment | ||||||||
Income: | ||||||||||
Interest | $ | 2,432,160 | $ | 4,326,618 | ||||||
Expenses: | ||||||||||
Administration and service fees | 604,377 | 1,045,500 | ||||||||
Advisory fee | 151,094 | 261,375 | ||||||||
Auditing | 41,678 | 41,294 | ||||||||
Legal | 25,284 | 26,900 | ||||||||
Trustees’ fees and expenses | 9,915 | 8,305 | ||||||||
Reports to shareholders | 13,615 | 14,566 | ||||||||
Registration fees | 24,303 | 25,723 | ||||||||
Other | 10,227 | 10,151 | ||||||||
Total expenses, before expense reductions | 880,493 | 1,433,814 | ||||||||
Expense reductions | (129,029 | ) | (132,000 | ) | ||||||
Total expenses, after expense reductions | 751,464 | 1,301,814 | ||||||||
Net investment income | 1,680,696 | 3,024,804 | ||||||||
Net realized gain (loss) on investment transactions | 289 | (2,157 | ) | |||||||
Net increase (decrease) in net assets resulting from operations | $ | 1,680,985 | $ | 3,022,647 | ||||||
Statement of Changes in Net Assets — NY Tax Free Money Fund Investment |
Years Ended December 31, | ||||||||||
Increase (Decrease) in Net Assets | 2005 | 2004 | ||||||||
Operations: | ||||||||||
Net investment income | $ | 1,680,696 | $ | 436,636 | ||||||
Net realized gain (loss) on investment transactions | 289 | 9,183 | ||||||||
Net increase (decrease) in net assets resulting from operations | 1,680,985 | 445,819 | ||||||||
Distributions to shareholders from: | ||||||||||
Net investment income | (1,680,695 | ) | (436,714 | ) | ||||||
Fund share transactions: | ||||||||||
Proceeds from shares sold | 255,899,620 | 477,073,897 | ||||||||
Reinvestment of distributions | 445,761 | 137,967 | ||||||||
Cost of shares redeemed | (276,418,725 | ) | (455,652,178 | ) | ||||||
Net increase (decrease) in net assets from Fund share transactions | (20,073,344 | ) | 21,559,686 | |||||||
Increase (decrease) in net assets | (20,073,054 | ) | 21,568,791 | |||||||
Net assets at beginning of period | 110,210,301 | 88,641,510 | ||||||||
Net assets at end of period (including undistributed net investment income of $25,578 and $25,577, respectively) | $ | 90,137,247 | $ | 110,210,301 | ||||||
Other Information | ||||||||||
Shares outstanding at beginning of period | 110,207,798 | 88,648,139 | ||||||||
Shares sold | 255,899,620 | 477,073,897 | ||||||||
Shares issued to shareholders in reinvestment of distributions | 445,761 | 137,967 | ||||||||
Shares redeemed | (276,418,723 | ) | (455,652,205 | ) | ||||||
Net increase (decrease) in Fund shares | (20,073,342 | ) | 21,559,659 | |||||||
Shares outstanding at end of period | 90,134,456 | 110,207,798 | ||||||||
Statement of Changes in Net Assets — Tax Free Money Fund Investment |
Years Ended December 31, | ||||||||||
Increase (Decrease) in Net Assets | 2005 | 2004 | ||||||||
Operations: | ||||||||||
Net investment income | $ | 3,024,804 | $ | 690,126 | ||||||
Net realized gain (loss) on investment transactions | (2,157 | ) | 24,554 | |||||||
Net increase (decrease) in net assets resulting from operations | 3,022,647 | 714,680 | ||||||||
Distributions to shareholders from: | ||||||||||
Net investment income | (3,024,804 | ) | (690,126 | ) | ||||||
Fund share transactions: | ||||||||||
Proceeds from shares sold | 733,051,760 | 741,308,274 | ||||||||
Reinvestment of distributions | 926,841 | 165,273 | ||||||||
Cost of shares redeemed | (695,075,364 | ) | (774,896,049 | ) | ||||||
Net increase (decrease) in net assets from Fund share transactions | 38,903,237 | (33,422,502 | ) | |||||||
Increase (decrease) in net assets | 38,901,080 | (33,397,948 | ) | |||||||
Net assets at beginning of period | 134,822,156 | 168,220,104 | ||||||||
Net assets at end of period (including undistributed net investment income of $2,578 and $0, respectively) | $ | 173,723,236 | $ | 134,822,156 | ||||||
Other Information | ||||||||||
Shares outstanding at beginning of period | 134,819,039 | 168,241,303 | ||||||||
Shares sold | 733,051,760 | 741,308,274 | ||||||||
Shares issued to shareholders in reinvestment of distributions | 926,841 | 165,273 | ||||||||
Shares redeemed | (695,075,744 | ) | (774,895,811 | ) | ||||||
Net increase (decrease) in Fund shares | 38,902,857 | (33,422,264 | ) | |||||||
Shares outstanding at end of period | 173,721,896 | 134,819,039 | ||||||||
Financial Highlights |
Years Ended December 31, | 2005 | 2004 | 2003 | 2002 | 2001a | ||||||||||||||||||
Selected Per Share Data | |||||||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income | .017 | .005 | .003 | .006 | .02 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactionsb | — | — | — | — | — | ||||||||||||||||||
Total from investment operations | .017 | .005 | .003 | .006 | .02 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (.017 | ) | (.005 | ) | (.003 | ) | (.006 | ) | (.02 | ) | |||||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||
Total Return (%)c | 1.70 | .47 | .32 | .65 | 1.89 | ||||||||||||||||||
Ratios to Average Net Assets and Supplemental Data | |||||||||||||||||||||||
Net assets, end of period ($ millions) | 90 | 110 | 89 | 113 | 110 | ||||||||||||||||||
Ratio of expenses before expense reductions (%) | .87 | .88 | .83 | .82 | .80d | ||||||||||||||||||
Ratio of expenses after expense reductions (%) | .75 | .75 | .75 | .75 | .75d | ||||||||||||||||||
Ratio of net investment income (%) | 1.67 | .49 | .33 | .65 | 1.86 | ||||||||||||||||||
a | 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. | |
b | Amount is less than $.0005 per share. | |
c | Total return would have been lower had certain expenses not been reduced. | |
d | Includes expenses of the NY Tax Free Money Portfolio. |
Financial Highlights |
Years Ended December 31, | 2005 | 2004 | 2003 | 2002 | 2001a | ||||||||||||||||||
Selected Per Share Data | |||||||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income | .017 | .005 | .003 | .007 | .02 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investment transactionsb | — | — | — | — | — | ||||||||||||||||||
Total from investment operations | .017 | .005 | .003 | .007 | .02 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (.017 | ) | (.005 | ) | (.003 | ) | (.007 | ) | (.02 | ) | |||||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||||||
Total Return (%)c | 1.72 | .49 | .33 | .72 | 2.08 | ||||||||||||||||||
Ratios to Average Net Assets and Supplemental Data | |||||||||||||||||||||||
Net assets, end of period ($ millions) | 174 | 135 | 168 | 166 | 164 | ||||||||||||||||||
Ratio of expenses before expense reductions (%) | .82 | .84 | .80 | .80 | .79 | d | |||||||||||||||||
Ratio of expenses after expense reductions (%) | .75 | .75 | .75 | .75 | .75 | d | |||||||||||||||||
Ratio of net investment income (loss) (%) | 1.73 | .46 | .32 | .72 | 2.11 | ||||||||||||||||||
a | 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. | |
b | Amount is less than $.005 per share. | |
c | Total return would have been lower had certain expenses not been reduced. | |
d | Includes expenses of the Tax Free Money Portfolio. |
Notes to Financial Statements |
Capital Loss | ||||||||||
Carryforward | Expiration Date | |||||||||
New York Tax Free Money Fund Investment | 300 | 12/31/2013 | ||||||||
Tax Free Money Fund Investment | 2,160 | 12/31/2013 | ||||||||
NY Tax Free | Tax Free | |||||||||
Money Fund | Money Fund | |||||||||
Investment | Investment | |||||||||
Undistributed tax-exempt income | $25,578 | $2,578 | ||||||||
For the Years Ended December 31, | ||||||||||
2005 | 2004 | |||||||||
NY Tax Free Money Fund Investment | ||||||||||
Distributions from tax-exempt income | $ | 1,680,695 | $ | 436,714 | ||||||
Tax Free Money Fund Investment | ||||||||||
Distributions from tax-exempt income | $ | 3,024,804 | $ | 690,126 | ||||||
Advisory | Amount | Annual | ||||||||||||
Fee | Waived | Effective Rate | ||||||||||||
NY Tax Free Money Fund Investment | $ | 151,094 | $ | 125,020 | .03% | |||||||||
Tax Free Money Fund Investment | $ | 261,375 | $ | 126,975 | .08% | |||||||||
Unpaid at | ||||||||||
Total | December 31, | |||||||||
Aggregated | 2005 | |||||||||
NY Tax Free Money Fund Investment | $ | 5,760 | $ | 1,740 | ||||||
Tax Free Money Fund Investment | $ | 5,760 | $ | 1,740 | ||||||
DeAM expects to reach final agreements with regulators early in 2006 regarding allegations of improper trading in the DWS funds. DeAM expects that it will reach settlement agreements with the Securities and Exchange Commission, the New York Attorney General and the Illinois Secretary of State providing for payment of disgorgement, penalties, and investor education contributions totaling approximately $134 million. Approximately $127 million of this amount would be distributed to shareholders of the affected DWS funds in accordance with a distribution plan to be developed by an independent distribution consultant. DeAM does not believe that any of the DWS funds will be named as respondents or defendants in any proceedings. The funds’ investment advisors do not believe these amounts will have a material adverse financial impact on them or materially affect their ability to perform under their investment management agreements with the DWS funds. The above-described amounts are not material to Deutsche Bank, and they have already been reserved. | |
Based on the settlement discussions thus far, DeAM believes that it will be able to reach a settlement with the regulators on a basis that is generally consistent with settlements reached by other advisors, taking into account the particular facts and circumstances of market timing at DeAM and at the legacy Scudder and Kemper organizations prior to their acquisition by DeAM in April 2002. Among the terms of the expected settled orders, DeAM would be subject to |
certain undertakings regarding the conduct of its business in the future, including maintaining existing management fee reductions for certain funds for a period of five years. DeAM expects that these settlements would resolve regulatory allegations that it violated certain provisions of federal and state securities laws (i) by entering into trading arrangements that permitted certain investors to engage in market timing in certain DWS funds and (ii) by failing more generally to take adequate measures to prevent market timing in the DWS funds, primarily during the 1999–2001 period. With respect to the trading arrangements, DeAM expects that the settlement documents will include allegations related to one legacy DeAM arrangement, as well as three legacy Scudder and six legacy Kemper arrangements. All of these trading arrangements originated in businesses that existed prior to the current DeAM organization, which came together in April 2002 as a result of the various mergers of the legacy Scudder, Kemper and Deutsche fund groups, and all of the arrangements were terminated prior to the start of the regulatory investigations that began in the summer of 2003. No current DeAM employee approved the trading arrangements. |
Report of Independent Registered Public Accounting Firm |
Tax Information | (unaudited) |
Investment Management Agreement Approval |
n | At the present time, all but one of the Fund’s Trustees are independent of the Advisor and its affiliates. | |
n | The Trustees meet frequently to discuss fund matters. Each year, the Trustees dedicate part or all of several meetings to contract review matters. | |
n | The Trustees regularly meet privately with their independent counsel (and, as needed, other advisors) to discuss contract review and other matters. |
n | The investment management fee schedule for the Fund, including (i) comparative information provided by Lipper regarding investment management fee rates paid to other investment advisors by similar funds and (ii) fee rates paid to the Advisor by similar funds and institutional |
accounts advised by the Advisor. With respect to management fees paid to other investment advisors by similar funds, the Trustees noted that the fee rate paid by the Fund was lower than the median (1st quartile) of the applicable Lipper universe as of December 31, 2004. The Board gave only limited consideration to fees paid by similar institutional accounts advised by the Advisor, in light of the material differences in the scope of services provided to mutual funds as compared to those provided to institutional accounts. The Board concluded that the fee schedule in effect for the Fund represented reasonable compensation in light of the nature, extent and quality of the services being provided to the Fund, the performance of the Fund and fees paid by similar funds. | ||
n | The extent to which economies of scale would be realized as the Fund grows. In this regard, the Board noted that the Fund’s investment management fee schedule does not include fee breakpoints but that its total assets are less than $150 million. The Board concluded that the Fund’s fee schedule represents an appropriate sharing between shareholders and the Advisor of such economies of scale as may exist in the management of the Fund at current asset levels. | |
n | The total operating expense of the Fund relative to the Fund’s peer group as determined by Lipper. In this regard, the Board noted that the total expenses of the Fund for the year ending December 31, 2004 were higher than the median (4th quartile) of the applicable Lipper universe. The Board also considered the expense limitations agreed to by the Advisor that serve to ensure that the Fund’s total operating expenses would be competitive relative to the applicable Lipper universe. | |
n | The investment performance of the Fund and the Advisor relative to industry peer groups. The Board noted that for the one-, three- and five-year periods ended June 30, 2005, the Fund’s performance was in the 4th quartile of the applicable iMoneyNet universe. The Board also observed that the Fund underperformed its benchmark in the one-, three-and five-year periods. The Board recognized that the Advisor has made significant changes in its investment personnel and processes in recent years in an effort to improve long-term performance. | |
n | The nature, extent and quality of the advisory services provided by the Advisor. The Board considered extensive information regarding the |
Advisor, including the Advisor’s personnel, particularly those personnel with responsibilities for providing services to the Fund, resources, policies and investment processes. The Board also considered the terms of the current investment management agreement, including the scope of services provided under the agreement. In this regard, the Board concluded that the quality and range of services provided by the Advisor have benefited, and should continue to benefit, the Fund and its shareholders. | ||
n | The costs of the services to, and profits realized by, the Advisor and its affiliates from their relationships with the Fund. The Board reviewed information concerning the costs incurred and profits realized by the Advisor during 2004 from providing investment management services to the Fund and, separately, to the entire DWS fund complex, and reviewed with the Advisor the cost allocation methodology used to determine its profitability. In analyzing the Advisor’s costs and profits, the Board also reviewed the fees paid to, and services provided to the Fund by the Advisor and its affiliates with respect to administrative services, fund accounting, shareholder servicing and distribution (including fees paid pursuant to 12b-1 plans). As part of this review, the Board considered information provided by an independent accounting firm engaged to review the Advisor’s cost allocation methodology and calculations. The Board concluded that the Fund’s investment management fee schedule represented reasonable compensation in light of the costs incurred by the Advisor and its affiliates in providing services to the Fund. The Board also reviewed information regarding the profitability of certain similar investment management firms. The Board noted that while information regarding the profitability of such firms is limited, the Advisor’s overall profitability with respect to the DWS fund complex (after taking into account distribution and other services provided by the Advisor and its affiliates) was lower than the overall profitability levels of most comparable firms for which such data was available. | |
n | The practices of the Advisor regarding the selection and compensation of brokers and dealers executing portfolio transactions for the Fund, including the Advisor’s soft dollar practices. In this regard, the Board observed that the Advisor had voluntarily terminated the practice of allocating brokerage commissions to acquire research services from third-party service providers. The Board indicated that it would continue to |
monitor the Fund’s trading activities to ensure that the principle of “best price and execution” remains paramount in the portfolio trading process. | ||
n | The Advisor’s commitment to, and record of, compliance including its written compliance policies and procedures. In this regard, the Board considered the Advisor’s commitment to indemnify the Fund against any costs and liabilities related to lawsuits or regulatory actions making allegations regarding market timing, revenue sharing, fund valuation or other subjects arising from or relating to pending regulatory inquiries. The Board also considered the significant attention and resources dedicated by the Advisor to documenting and enhancing its compliance processes in recent years. The Board noted in particular (i) the experience and seniority of the Advisor’s chief compliance officer, who reports to the Board, (ii) the large number of compliance personnel who report to the Advisor’s chief compliance officer, and (iii) the substantial commitment of resources by the Advisor to compliance matters. | |
n | Deutsche Bank’s commitment to restructuring and growing its US mutual fund business. The Board considered recent and ongoing efforts by Deutsche Bank to restructure its US mutual fund business to improve efficiency and competitiveness and to reduce compliance and operational risk. The Board considered assurances received from Deutsche Bank that it would commit the resources necessary to maintain high quality services to the Fund and its shareholders as long as they remained in existence and while various organizational initiatives are being implemented. The Board also considered Deutsche Bank’s strategic plans for investing in the growth of its US mutual fund business and the potential benefits to the Fund’s shareholders. |
n | At the present time, all but one of the Fund’s Trustees are independent of the Advisor and its affiliates. | |
n | The Trustees meet frequently to discuss fund matters. Each year, the Trustees dedicate part or all of several meetings to contract review matters. | |
n | The Trustees regularly meet privately with their independent counsel (and, as needed, other advisors) to discuss contract review and other matters. |
n | The investment management fee schedule for the Fund, including (i) comparative information provided by Lipper regarding investment management fee rates paid to other investment advisors by similar funds |
and (ii) fee rates paid to the Advisor by similar funds and institutional accounts advised by the Advisor. With respect to management fees paid to other investment advisors by similar funds, the Trustees noted that the fee rate paid by the Fund was lower than the median (1st quartile) of the applicable Lipper universe as of December 31, 2004. The Board gave only limited consideration to fees paid by similar institutional accounts advised by the Advisor, in light of the material differences in the scope of services provided to mutual funds as compared to those provided to institutional accounts. The Board concluded that the fee schedule in effect for the Fund represented reasonable compensation in light of the nature, extent and quality of the services being provided to the Fund, the performance of the Fund and fees paid by similar funds. | ||
n | The extent to which economies of scale would be realized as the Fund grows. In this regard, the Board noted that the Fund’s investment management fee schedule does not include fee breakpoints but that its total assets are less than $200 million. The Board concluded that the Fund’s fee schedule is appropriate given current asset levels. | |
n | The total operating expense of the Fund relative to the Fund’s peer group as determined by Lipper. In this regard, the Board noted that the total expenses of the Fund for the year ending December 31, 2004 were higher than the median (3rd quartile) of the applicable Lipper universe. The Board also considered the expense limitations agreed to by the Advisor that serve to ensure that the Fund’s total operating expenses would be competitive relative to the applicable Lipper universe. | |
n | The investment performance of the Fund and the Advisor relative to industry peer groups. The Board noted that for the one-year period ended June 30, 2005, the Fund’s performance was in the 3rd quartile, and for the three- and five-year periods was in the 4th quartile, of the applicable iMoneyNet universe. The Board also observed that the Fund underperformed its benchmark in the one-, three-and five-year periods. The Board recognized that the Advisor has made significant changes in its investment personnel and processes in recent years in an effort to improve long-term performance. | |
n | The nature, extent and quality of the advisory services provided by the Advisor. The Board considered extensive information regarding the |
Advisor, including the Advisor’s personnel, particularly those personnel with responsibilities for providing services to the Fund, resources, policies and investment processes. The Board also considered the terms of the current investment management agreement, including the scope of services provided under the agreement. In this regard, the Board concluded that the quality and range of services provided by the Advisor have benefited, and should continue to benefit, the Fund and its shareholders. | ||
n | The costs of the services to, and profits realized by, the Advisor and its affiliates from their relationships with the Fund. The Board reviewed information concerning the costs incurred and profits realized by the Advisor during 2004 from providing investment management services to the Fund and, separately, to the entire DWS fund complex, and reviewed with the Advisor the cost allocation methodology used to determine its profitability. In analyzing the Advisor’s costs and profits, the Board also reviewed the fees paid to, and services provided by, the Advisor and its affiliates with respect to administrative services, fund accounting, shareholder servicing and distribution (including fees paid pursuant to 12b-1 plans). As part of this review, the Board considered information provided by an independent accounting firm engaged to review the Advisor’s cost allocation methodology and calculations. The Board concluded that the Fund’s investment management fee schedule represented reasonable compensation in light of the costs incurred by the Advisor and its affiliates in providing services to the Fund. The Board also reviewed information regarding the profitability of certain similar investment management firms. The Board noted that while information regarding the profitability of such firms is limited, the Advisor’s overall profitability with respect to the DWS fund complex (after taking into account distribution and other services provided by the Advisor and its affiliates) was lower than the overall profitability levels of most comparable firms for which such data was available. | |
n | The practices of the Advisor regarding the selection and compensation of brokers and dealers executing portfolio transactions for the Fund, including the Advisor’s soft dollar practices. In this regard, the Board observed that the Advisor had voluntarily terminated the practice of allocating brokerage commissions to acquire research services from third-party service providers. The Board indicated that it would continue to |
monitor the Fund’s trading activities to ensure that the principle of “best price and execution” remains paramount in the portfolio trading process. | ||
n | The Advisor’s commitment to, and record of, compliance including its written compliance policies and procedures. In this regard, the Board considered the Advisor’s commitment to indemnify the Fund against any costs and liabilities related to lawsuits or regulatory actions making allegations regarding market timing, revenue sharing, fund valuation or other subjects arising from or relating to pending regulatory inquiries. The Board also considered the significant attention and resources dedicated by the Advisor to documenting and enhancing its compliance processes in recent years. The Board noted in particular (i) the experience and seniority of the Advisor’s chief compliance officer, who reports to the Board, (ii) the large number of compliance personnel who report to the Advisor’s chief compliance officer, and (iii) the substantial commitment of resources by the Advisor to compliance matters. | |
n | Deutsche Bank’s commitment to restructuring and growing its US mutual fund business. The Board considered recent and ongoing efforts by Deutsche Bank to restructure its US mutual fund business to improve efficiency and competitiveness and to reduce compliance and operational risk. The Board considered assurances received from Deutsche Bank that it would commit the resources necessary to maintain high quality services to the Fund and its shareholders as long as they remained in existence and while various organizational initiatives are being implemented. The Board also considered Deutsche Bank’s strategic plans for investing in the growth of its US mutual fund business and the potential benefits to the Fund’s shareholders. |
Trustees and Officers |
Independent Trustees |
Name, Date of | Number of | |||||
Birth, Position | Funds in | |||||
with the Fund | the Fund | |||||
and Length of | Business Experience and Directorships | Complex | ||||
Time Served1,2 | During the Past 5 Years | Overseen | ||||
Richard R. Burt 2/3/47 Trustee since 2002 | Chairman, Diligence Inc. (international information collection and risk-management firm (since September 2002); Chairman, IEP Advisors, Inc. (July 1998–present); Member of the Board, Hollinger International, Inc.3 (publishing) (September 1995 to present), HCL Technologies Limited (information technology) (since April 1999), UBS Mutual Funds (formerly known as Brinson and Mitchell Hutchins families of funds) (registered investment companies) (September 1995 to present); and Member, Textron Inc.3 International Advisory Council (since July 1996); Director, The European Equity Fund, Inc. (since 2000), The New Germany Fund, Inc. (since 2004), The Central Europe and Russia Fund, Inc. (since 2000), DWS Global High Income Fund, Inc. (since 2005), DWS Global Commodities Stock Fund, Inc. (since 2005). Formerly, Partner, McKinsey & Company (consulting) (1991–1994) and US Chief Negotiator in Strategic Arms Reduction Talks (START) with former Soviet Union and US Ambassador to the Federal Republic of Germany (1985–1991); Member of the Board, Homestake Mining3 (mining and exploration) (1998–February 2001), Archer Daniels Midland Company3 (agribusiness operations) (October 1996–June 2001) and Anchor Gaming (gaming software and equipment) (March 1999–December 2001); Chairman of the Board, Weirton Steel Corporation3 (April 1996–2004 ). | 54 | ||||
Martin J. Gruber 7/15/37 Trustee since 1999 | Nomura Professor of Finance, Leonard N. Stern School of Business, New York University (since September 1965); Director, Japan Equity Fund, Inc. (since January 1992), Thai Capital Fund, Inc. (since January 2000) and Singapore Fund, Inc. (since January 2000) (registered investment companies), DWS Global High Income Fund, Inc. (since 2005), DWS Global Commodities Stock Fund, Inc. (since 2005). Formerly, Trustee, TIAA (pension funds) (January 1996–January 2000); Trustee, CREF and CREF Mutual Funds (January 2000–March 2005); Chairman, CREF and CREF Mutual Funds, (February 2004–March 2005) and Director, S.G. Cowen Mutual Funds (January 1985–January 2001). | 51 | ||||
Richard J. Herring 2/18/46 Trustee since 1999 | Jacob Safra Professor of International Banking and Professor, Finance Department, The Wharton School, University of Pennsylvania (since July 1972); Director, Lauder Institute of International Management Studies (since July 2000); Co-Director, Wharton Financial Institutions Center (since July 2000). Formerly, Vice Dean and Director, Wharton Undergraduate Division (July 1995–June 2000). | 51 | ||||
Name, Date of | Number of | |||||
Birth, Position | Funds in | |||||
with the Fund | the Fund | |||||
and Length of | Business Experience and Directorships | Complex | ||||
Time Served1,2 | During the Past 5 Years | Overseen | ||||
Graham E. Jones 1/31/33 Trustee since 2002 | Senior Vice President, BGK Realty, Inc. (commercial real estate) (since 1995); DWS Global High Income Fund, Inc. (since 2005), Scudder Global Commodities Stock Fund, Inc. (since 2005). Formerly, Trustee of various investment companies managed by Sun Capital Advisors, Inc. (1998–2005); Trustee, Morgan Stanley Asset Management, various funds (1985–2001); Trustee, Weiss, Peck and Greer, various funds (1985–2005). | 51 | ||||
Rebecca W. Rimel 4/10/51 Trustee since 2002 | President and Chief Executive Officer, The Pew Charitable Trusts (charitable foundation) (1994–present); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–present); Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–present); Director, DWS Global High Income Fund, Inc. (since 2005), DWS Global Commodities Stock Fund, Inc. (since 2005). Formerly, Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005). | 51 | ||||
Philip Saunders, Jr. 10/11/35 Trustee since 1986 | Principal, Philip Saunders Associates (economic and financial consulting) (since November 1988). Formerly, Director, Financial Industry Consulting, Wolf & Company (consulting) (1987–1988); President, John Hancock Home Mortgage Corporation (1984–1986); Senior Vice President of Treasury and Financial Services, John Hancock Mutual Life Insurance Company, Inc. (1982–1986). | 51 | ||||
William N. Searcy, Jr. 9/3/46 Trustee since 2002 | Private investor (since October 2003); Trustee of 18 open-end mutual funds managed by Sun Capital Advisers, Inc. (since October 1998). Formerly, Pension & Savings Trust Officer, Sprint Corporation3 (telecommunications) (November 1989–October 2003). | 51 | ||||
Interested Trustee |
Name, Date of | Number of | |||||
Birth, Position | Funds in | |||||
with the Fund | the Fund | |||||
and Length of | Business Experience and Directorships | Complex | ||||
Time Served1,2 | During the Past 5 Years | Overseen | ||||
William N. Shiebler4 2/6/42 Trustee since 2004 | Vice Chairman, Deutsche Asset Management (“DeAM”) and a member of the DeAM Global Executive Committee (since 2002); Vice Chairman of Putnam Investments, Inc. (1999); Director and Senior Managing Director of Putnam Investments, Inc. and President, Chief Executive Officer, and Director of Putnam Mutual Funds Inc. (1990–1999). | 120 | ||||
Officers |
Name, Date of Birth, | ||
Position with the Fund and | Business Experience and Directorships | |
Length of Time Served1,2 | During the Past 5 Years | |
Vincent J. Esposito6 6/8/56 President since 2005 | Managing Director5, Deutsche Asset Management (since 2003); President and Chief Executive Officer of The Central Europe and Russia Fund, Inc., The European Equity Fund, Inc., The New Germany Fund, Inc. (since 2003) (registered investment companies); Vice Chairman and Director of The Brazil Fund, Inc. (2004–present); formerly, Managing Director, Putnam Investments (1991–2002). | |
Paul H. Schubert6 1/11/63 Chief Financial Officer since 2004 Treasurer since June 2005 | Managing Director5, Deutsche Asset Management (since July 2004); formerly, Executive Director, Head of Mutual Fund Services and Treasurer for UBS Family of Funds (1998–2004); Vice President and Director of Mutual Fund Finance at UBS Global Asset Management (1994–1998). | |
John Millette7 8/23/62 Secretary since 2003 | Director5, Deutsche Asset Management. | |
Patricia DeFilippis6 6/21/63 Assistant Secretary since 2005 | Vice President, Deutsche Asset Management (since June 2005); Counsel, New York Life Investment Management LLC (2003–2005); legal associate, Lord, Abbett & Co. LLC (1998–2003). | |
Elisa D. Metzger6 9/15/62 Assistant Secretary since 2005 | Director5, Deutsche Asset Management (since September 2005); Counsel, Morrison and Foerster LLP (1999–2005). | |
Caroline Pearson7 4/1/62 Assistant Secretary since 2002 | Managing Director5, Deutsche Asset Management. | |
Scott M. McHugh7 9/13/71 Assistant Treasurer since 2005 | Director5, Deutsche Asset Management. | |
Kathleen Sullivan D’Eramo 7 1/25/57 Assistant Treasurer since 2003 | Director5, Deutsche Asset Management. | |
John Robbins6 4/8/66 Anti-Money Laundering Compliance Officer since 2005 | Managing Director5, Deutsche Asset Management (since 2005); formerly, Chief Compliance Officer and Anti-Money Laundering Compliance Officer for GE Asset Management (1999–2005). | |
Name, Date of Birth, | ||
Position with the Fund and | Business Experience and Directorships | |
Length of Time Served1,2 | During the Past 5 Years | |
Philip Gallo6 8/2/62 Chief Compliance Officer since 2004 | Managing Director5, Deutsche Asset Management (2003–present). Formerly, Co-Head of Goldman Sachs Asset Management Legal (1994–2003). | |
A. Thomas Smith6,8 (1956) Chief Legal Officer since 2005 | Managing Director5, Deutsche Asset Management (2004–present); formerly, General Counsel, Morgan Stanley and Van Kampen and Investments (1999–2004); Vice President and Associate General Counsel, New York Life Insurance Company (1994–1999); senior attorney, The Dreyfus Corporation (1991–1993); senior attorney, Willkie Farr & Gallagher (1989–1991); staff attorney, US Securities & Exchange Commission and the Illinois Securities Department (1986–1989). | |
1 | Unless otherwise indicated, the mailing address of each Trustee and officer with respect to fund operations is One South Street, Baltimore, MD 21202. | |
2 | Length of time served represents the date that each Trustee or officer first began serving in that position with DWS Advisor Funds of which these funds are each series. | |
3 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. | |
4 | Mr. Shiebler is a Trustee who is an “interested person” within the meaning of Section 2(a)(19) of the 1940 Act. Mr. Shiebler is a Managing Director of Deutsche Asset Management, the US asset management unit of Deutsche Bank AG and its affiliates. Mr. Shiebler’s business address is 345 Park Avenue, New York, New York 10154. | |
5 | Executive title, not a board directorship. | |
6 | Address: 345 Park Avenue, New York, New York 10154. | |
7 | Address: Two International Place, Boston, Massachusetts 02110. | |
8 | Elected on December 2, 2005. |
Account Management Resources |
Automated Information Lines | Institutional Investor Services (800) 730-1313 Personalized account information, information on other DeAM funds and services via touchtone telephone and the ability to exchange or redeem shares. | |||||
For More Information | (800) 730-1313, option 1 To speak with a fund service representative. | |||||
Written Correspondence | Deutsche Asset Management PO Box 219210 Kansas City, MO 64121-9210 | |||||
Proxy Voting | A description of 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 12-month period ended June 30 is available on our Web site — www.dws-scudder.com (type ‘proxy voting‘ in the search field) — or on the SEC’s Web site — www.sec.gov. To obtain a written copy of the fund’s policies and procedures without charge, upon request, call us toll free at (800) 621-1048. | |||||
Principal Underwriter | If you have questions, comments or complaints, contact: DWS Scudder Distributors, Inc. 222 South Riverside Plaza Chicago, IL 60606-5808 (800) 621-1148 | |||||
NY Tax Free Money Fund Investment | Tax Free Money Fund Investment | |||||
Nasdaq Symbol | BNYXX | BTXXX | ||||
CUSIP Number | 23336Y 698 | 23336Y 714 | ||||
Fund Number | 844 | 839 | ||||
| ITEM 2. | CODE OF ETHICS. |
As of the end of the period, December 31, 2005, DWS Advisor Funds has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Principal Executive Officer and Principal Financial Officer.
There have been no amendments to, or waivers from, a provision of the code of ethics during the period covered by this report that would require disclosure under Item 2.
A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
The Fund’s Board of Directors/Trustees has determined that the Fund has at least one “audit committee financial expert” serving on its audit committee: Mr. Graham E. Jones. This audit committee member is “independent,” meaning that he is not an “interested person” of the Fund (as that term is defined in Section 2(a)(19) of the Investment Company Act of 1940) and he does not accept any consulting, advisory, or other compensatory fee from the Fund (except in the capacity as a Board or committee member).
An “audit committee financial expert” is not an “expert” for any purpose, including for purposes of Section 11 of the Securities Act of 1933, as a result of being designated as an “audit committee financial expert.” Further, the designation of a person as an “audit committee financial expert” does not mean that the person has any greater duties, obligations, or liability than those imposed on the person without the “audit committee financial expert” designation. Similarly, the designation of a person as an “audit committee financial expert” does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
NY TAX FREE MONEY FUND INVESTMENT
FORM N-CSR DISCLOSURE RE: AUDIT FEES
The following table shows the amount of fees that PricewaterhouseCoopers, LLP (“PWC”), the Fund’s independent registered public accounting firm, billed to the Fund during the Fund’s last two fiscal years. The Audit Committee approved in advance all audit services and non-audit services that PWC provided to the Fund.
The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Fund
Fiscal Year | Audit Fees Billed to Fund | Audit-Related | Tax Fees Billed to Fund | All |
2005 | $35,650 | $225 | $0 | $0 |
2004 | $35,100 | $185 | $3,255 | $0 |
The above “Audit- Related Fees” were billed for agreed upon procedures performed and the above "Tax Fees" were billed for professional services rendered for tax compliance and tax return preparation.
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers
The following table shows the amount of fees billed by PWC to Deutsche Investment Management Americas, Inc. (“DeIM” or the “Adviser”), and any entity controlling, controlled by or under common control with DeIM (“Control Affiliate”) that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two fiscal years.
Fiscal Year | Audit-Related | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All |
2005 | $268,900 | $197,605 | $0 |
2004 | $431,907 | $0 | $0 |
The “Audit-Related Fees” were billed for services in connection with the assessment of internal controls, agreed-upon procedures and additional related procedures and the above “Tax Fees” were billed in connection with consultation services and agreed-upon procedures.
Non-Audit Services
The following table shows the amount of fees that PWC billed during the Fund’s last two fiscal years for non-audit services. For engagements entered into on or after May 6, 2003, the Audit Committee pre-approved all non-audit services that PWC provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Fund’s operations and financial reporting. The Audit Committee requested and received information from PWC about any non-audit services that PWC rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating PWC’s independence.
Fiscal Year | Total (A) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund) (B) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) (C) | Total of (A), (B) |
2005 | $0 | $197,605 | $104,635 | $302,240 |
2004 | $3,255 | $0 | $253,272 | $256,527 |
All other engagement fees were billed for services in connection with risk management, tax services and process improvement/integration initiatives for DeIM and other related entities that provide support for the operations of the fund.
TAX FREE MONEY FUND INVESTMENT
FORM N-CSR DISCLOSURE RE: AUDIT FEES
The following table shows the amount of fees that PricewaterhouseCoopers, LLP (“PWC”), the Fund’s independent registered public accounting firm, billed to the Fund during the Fund’s last two fiscal years. The Audit Committee approved in advance all audit services and non-audit services that PWC provided to the Fund.
The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Fund
Fiscal Year | Audit Fees Billed to Fund | Audit-Related | Tax Fees Billed to Fund | All |
2005 | $35,650 | $225 | $0 | $0 |
2004 | $35,100 | $185 | $3,255 | $0 |
The above “Audit- Related Fees” were billed for agreed upon procedures performed and the above "Tax Fees" were billed for professional services rendered for tax compliance and tax return preparation.
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers
The following table shows the amount of fees billed by PWC to Deutsche Investment Management Americas, Inc. (“DeIM” or the “Adviser”), and any entity controlling, controlled by or under common control with DeIM (“Control Affiliate”) that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two fiscal years.
Fiscal Year | Audit-Related | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All |
2005 | $268,900 | $197,605 | $0 |
2004 | $431,907 | $0 | $0 |
The “Audit-Related Fees” were billed for services in connection with the assessment of internal controls, agreed-upon procedures and additional related procedures and the above “Tax Fees” were billed in connection with consultation services and agreed-upon procedures.
Non-Audit Services
The following table shows the amount of fees that PWC billed during the Fund’s last two fiscal years for non-audit services. For engagements entered into on or after May 6, 2003, the Audit Committee pre-approved all non-audit services that PWC provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Fund’s operations and financial reporting. The Audit Committee requested and received information from PWC about any non-audit services that PWC rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating PWC’s independence.
Fiscal Year | Total (A) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund) (B) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) (C) | Total of (A), (B) |
2005 | $0 | $197,605 | $104,635 | $302,240 |
2004 | $3,255 | $0 | $253,272 | $256,527 |
All other engagement fees were billed for services in connection with risk management, tax services and process improvement/integration initiatives for DeIM and other related entities that provide support for the operations of the fund.
| 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. |
The Nominating and Governance Committee evaluates and nominates Board member candidates. Fund shareholders may also submit nominees that will be considered by the Committee when a Board vacancy occurs. Submissions should be mailed to the attention of the Secretary of the Fund, One South Street, Baltimore, MD 21202.
| 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 registrant’s last half-year (the registrant’s second fiscal half-year in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting. |
| ITEM 12. | EXHIBITS. |
(a)(1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(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. |
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: | NY Tax Free Money Fund Investment, a series of DWS Advisor Funds |
By: | /s/Vincent J. Esposito | |
| Vincent J. Esposito |
|
President
Date: | March 2, 2006 |
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: | NY Tax Free Money Fund Investment, a series of DWS Advisor Funds |
By: | /s/Vincent J. Esposito | |
| Vincent J. Esposito |
|
President
Date: | March 2, 2006 |
By: | /s/Paul Schubert | |
| Paul Schubert |
|
Chief Financial Officer and Treasurer
Date: | March 2, 2006 |
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: | Tax Free Money Fund Investment, a series of DWS Advisor Funds |
By: | /s/Vincent J. Esposito | |
| Vincent J. Esposito |
|
President
Date: | March 2, 2006 |
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: | Tax Free Money Fund Investment, a series of DWS Advisor Funds |
By: | /s/Vincent J. Esposito | |
| Vincent J. Esposito |
|
President
Date: | March 2, 2006 |
By: | /s/Paul Schubert | |
| Paul Schubert |
|
Chief Financial Officer and Treasurer
Date: | March 2, 2006 |