UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number 811-04760
DWS Advisor Funds
(Exact Name of Registrant as Specified in Charter)
One South Street
Baltimore, MD 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: | 6/30/07 |
ITEM 1. REPORT TO STOCKHOLDERS
NY Tax Free Money Fund
Investment Class
Tax Free Money Fund Investment
Semiannual Report to
Shareholders
June 30, 2007
Contents
click here Information About Each Fund's Expenses
NY Tax Free Money Fund
click here Portfolio Summary
click here Investment Portfolio
click here Financial Statements
click here Financial Highlights
Tax Free Money Fund Investment
click here Portfolio Summary
click here Investment Portfolio
click here Financial Statements
click here Financial Highlights
click here Notes to Financial Statements
click here Shareholder Meeting Results
click here Account Management Resources
click here Privacy Statement
This report must be preceded or accompanied by a prospectus. We advise you to consider the funds' objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the funds. Please read the prospectus carefully before you invest.
An investment in these funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds. Please read each fund's prospectus for specific details regarding its risk profile.
DWS Scudder is part of Deutsche Asset Management, which is the marketing name in the US for the asset management activities of Deutsche Bank AG, Deutsche Investment Management Americas Inc., Deutsche Bank Trust Company Americas and DWS Trust Company.
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Information About Each Fund's Expenses
As an investor, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees and other Fund expenses. Examples of transaction costs include account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in each Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recent six-month period, each Fund limited these expenses; had it not done so, expenses would have been higher. The example in the table is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (January 1, 2007 to June 30, 2007).
The tables illustrate your Fund's expenses in two ways:
Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund's actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the "Expenses Paid per $1,000" line under the share class you hold.
Hypothetical 5% Fund Return. This helps you to compare your Fund's ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund's actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The "Expenses Paid per $1,000" line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. If these transaction costs had been included, your costs would have been higher.
NY Tax Free Money Fund
Expenses and Value of a $1,000 Investment for the six months ended June 30, 2007 | |
Actual Fund Return | Investment Class |
Beginning Account Value 1/1/07 | $ 1,000.00 |
Ending Account Value 6/30/07 | $ 1,014.70 |
Expenses Paid per $1,000* | $ 3.75 |
Hypothetical 5% Fund Return | Investment Class |
Beginning Account Value 1/1/07 | $ 1,000.00 |
Ending Account Value 6/30/07 | $ 1,021.08 |
Expenses Paid per $1,000* | $ 3.76 |
Annualized Expense Ratio | Investment Class |
NY Tax Free Money Fund | .75% |
For more information, please refer to the Fund's prospectus.
Tax Free Money Fund Investment
Expenses and Value of a $1,000 Investment for the six months ended June 30, 2007 |
|
Actual Fund Return |
|
Beginning Account Value 1/1/07 | $ 1,000.00 |
Ending Account Value 6/30/07 | $ 1,014.70 |
Expenses Paid per $1,000* | $ 3.75 |
Hypothetical 5% Fund Return |
|
Beginning Account Value 1/1/07 | $ 1,000.00 |
Ending Account Value 6/30/07 | $ 1,021.08 |
Expenses Paid per $1,000* | $ 3.76 |
Annualized Expense Ratio |
|
Tax Free Money Fund Investment | .75% |
For more information, please refer to the Fund's prospectus.
NY Tax Free Money Fund
Asset Allocation | 6/30/07 | 12/31/06 |
|
|
|
Municipal Investments Municipal Variable Rate Demand Notes | 91% | 72% |
Municipal Bonds and Notes | 9% | 28% |
| 100% | 100% |
Weighted Average Maturity |
|
|
|
|
|
NY Tax Free Money Fund | 17 days | 28 days |
iMoneyNet State Specific Retail Money Funds Average* | 19 days | 27 days |
For more complete details about the Fund's holdings, see page 7. A quarterly Fact Sheet is available upon request. Information concerning portfolio holdings of the Funds as of month end will be posted to www.dws-scudder.com on or after the last day of the following month. In addition, the Funds' top ten holdings and other information about the Funds is posted on www.dws-scudder.com as of the calendar quarter-end on or after the 15th day following quarter-end. Please see the Account Management Resources section for more contact information.
Following the Funds' fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC on Form N-Q. The form will be available on the SEC's Web site at www.sec.gov, and it also may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling (800) SEC-0330.
Investment Portfolio as of June 30, 2007 (Unaudited)
NY Tax Free Money Fund
| Principal Amount ($) | Value ($) |
|
| |
Municipal Investments 106.1% | ||
New York 104.0% | ||
Austin, NY Trust Various States, Series 2007-132, 144A, 3.77%*, 6/15/2030 | 2,000,000 | 2,000,000 |
Broome County, NY, Industrial Development Agency Revenue, Parlor City Paper Box Co., AMT, 3.81%*, 10/1/2016, NBT Bank NA (a) | 740,000 | 740,000 |
Erie County, NY, Industrial Development Agency, Civic Facility Revenue, Suburban Adult Services, Inc., 3.8%*, 6/1/2022, KeyBank NA (a) | 3,460,000 | 3,460,000 |
Guilderland, NY, Industrial Development Agency, Civic Facility Revenue, Multi-Mode-Wildwood Project, Series A, 3.78%*, 7/1/2032, KeyBank NA (a) | 5,200,000 | 5,200,000 |
Hempstead, NY, Industrial Development Agency Revenue, Series F5J-D, AMT, 144A, 3.82%*, 10/1/2043 | 7,260,000 | 7,260,000 |
New York, Convention Center Development Corp. Revenue, Series 1247Z, 144A, 3.77%*, 11/15/2013 (b) | 1,000,000 | 1,000,000 |
New York, Hudson Yards Infrastructure Corp. Revenue, Series 1649, 144A, 3.77%*, 8/15/2014 (b) | 1,930,000 | 1,930,000 |
New York, Metropolitan Transportation Authority Revenue: |
|
|
3.73%*, 12/6/2007 | 4,000,000 | 4,000,000 |
3.74%*, 7/10/2007 | 1,000,000 | 1,000,000 |
Series 848-D, 144A, 3.78%*, 11/15/2021 (b) | 789,500 | 789,500 |
Series B-16, 144A, 3.79%*, 11/15/2027 | 1,800,000 | 1,800,000 |
Series A, 3.79%*, 11/15/2030 (b) | 3,680,000 | 3,680,000 |
New York, Municipal Securities Trust Certificates, "A", Series 5020, 144A, 3.83%*, 7/1/2018 | 2,015,000 | 2,015,000 |
New York, State Dormitory Authority Revenue: |
|
|
Series PA-541, 144A, 3.77%*, 8/1/2038 (b) | 1,500,000 | 1,500,000 |
Series B09, 144A, 3.79%*, 3/15/2023 (b) | 700,000 | 700,000 |
New York, State Dormitory Authority Revenue, Park Ridge Hospital, Inc., 3.75%*, 7/1/2029, JPMorgan Chase Bank (a) | 3,130,000 | 3,130,000 |
New York, State Energy Research & Development Authority Facilities Revenue, Consolidated Edison Co., Series C-2, AMT, 3.78%*, 11/1/2039, Citbank NA (a) | 1,500,000 | 1,500,000 |
New York, State Environmental Facilities Corp., Clean Drinking Water, Series D, 4.5%, 3/15/2008 | 2,790,000 | 2,817,565 |
New York, State Environmental Facilities Corp., Pollution Control Revenue, Series PA-1261, 144A, 3.77%*, 12/15/2009 (b) | 1,385,000 | 1,385,000 |
New York, State General Obligation, Series B, 3.58%*, 3/15/2030, Dexia Credit Local France (a) | 2,940,000 | 2,940,000 |
New York, State Housing Finance Agency Revenue, Avalon Bowery Place II, Series A, AMT, 3.76%*, 11/1/2039, Bank of America NA (a) | 2,500,000 | 2,500,000 |
New York, State Housing Finance Agency Revenue, 100 Maiden Lane Housing, Series A, 3.72%*, 11/1/2037, Bank of New York (a) | 1,200,000 | 1,200,000 |
New York, State Housing Finance Agency Revenue, 316 Eleventh Avenue Housing, Series A, AMT, 3.8%*, 5/15/2041 | 5,000,000 | 5,000,000 |
New York, State Housing Finance Agency Revenue, East 39th Street Housing, Series A, AMT, 3.8%*, 11/15/2031 | 500,000 | 500,000 |
New York, State Power Authority Revenue & General Purpose, 3.65%*, 3/1/2016 | 4,500,000 | 4,500,000 |
New York, State Thruway Authority, Personal Income Tax Revenue, Series PT-3027, 144A, 3.77%*, 3/15/2025 (b) | 2,000,000 | 2,000,000 |
New York, Tobacco Settlement Financing Corp., Series R-2033, 144A, 3.79%*, 6/1/2021 (b) | 1,945,000 | 1,945,000 |
New York, Triborough Bridge & Tunnel Authority Revenue, Series B-13, 144A, 3.79%*, 11/15/2021 (b) | 2,060,000 | 2,060,000 |
New York City, NY, Housing Development Corp., MultiFamily Mortgage Revenue, Series A, 3.72%*, 10/15/2041 | 2,500,000 | 2,500,000 |
New York City, NY, Industrial Development Agency Revenue, Series R-634, 144A, 3.78%*, 1/1/2046 (b) | 1,500,000 | 1,500,000 |
New York City, NY, Industrial Development Agency, Civic Facility Revenue, Abraham Joshua Heschel Project, 3.75%*, 4/1/2032, Allied Irish Bank PLC (a) | 1,365,000 | 1,365,000 |
New York City, NY, Industrial Development Agency, Civic Facility Revenue, Allen Stevenson School, 3.77%*, 12/1/2034, Allied Irish Bank PLC (a) | 1,105,000 | 1,105,000 |
New York City, NY, Industrial Development Agency, Civic Facility Revenue, Jewish Board of Family Services, 3.76%*, 7/1/2025, Allied Irish Bank PLC (a) | 4,000,000 | 4,000,000 |
New York City, NY, Municipal Finance Authority, Water & Sewer Systems Revenue, Series 1289, 144A, 3.77%*, 12/15/2013 | 1,500,000 | 1,500,000 |
New York City, NY, Municipal Water Finance Authority, Water & Sewer Systems Revenue: |
|
|
Series AA-3, 3.74%*, 6/15/2032 | 5,000,000 | 5,000,000 |
Series A, 3.87%*, 6/15/2025 (b) | 600,000 | 600,000 |
New York City, NY, Transitional Finance Authority Building Aid Revenue, Series A, 144A, 3.79%*, 7/15/2036 (b) | 1,380,000 | 1,380,000 |
New York City, NY, Transitional Finance Authority Revenue: |
|
|
Series A, 144A, 3.77%*, 11/1/2030 | 1,000,000 | 1,000,000 |
Series A-40, 144A, 3.79%*, 11/1/2026 (b) | 945,000 | 945,000 |
New York City, NY, Transitional Finance Authority, NYC Recovery: |
|
|
Series 3E, 3.83%*, 11/1/2022 | 1,525,000 | 1,525,000 |
Series 3H, 3.85%*, 11/1/2022 | 1,455,000 | 1,455,000 |
New York, NY, General Obligation: |
|
|
Series C-2, 3.72%*, 8/1/2020, Bayerische Landesbank (a) | 1,500,000 | 1,500,000 |
Series 1318, 144A, 3.77%*, 6/1/2013 (b) | 1,495,000 | 1,495,000 |
Series A-4, 3.81%*, 8/1/2021, Landesbank Baden-Wurttm (a) | 500,000 | 500,000 |
Series E-2, 3.85%*, 8/1/2034, Bank of America NA (a) | 880,000 | 880,000 |
Series I-8, 3.88%*, 4/1/2036, Bank of America NA (a) | 1,800,000 | 1,800,000 |
Niagara County, NY, Industrial Development Agency, Civic Facility Revenue, NYSARC, Inc., Series A, 3.8%*, 9/1/2021, KeyBank NA (a) | 465,000 | 465,000 |
Onondaga County, NY, Industrial Development Agency, Civic Facility Revenue, YMCA of Greater Syracuse, Series A, 3.8%*, 11/1/2025, Citizens Bank NA (a) | 300,000 | 300,000 |
Ontario County, NY, Industrial Development Agency, Civic Facility Revenue, F. Thompson Hospital, Series B, 3.76%*, 7/1/2030, KeyBank of New York (a) | 3,000,000 | 3,000,000 |
Otsego County, NY, Industrial Development Agency, Civic Facility Revenue, Templeton Foundation Project, Series A, 3.8%*, 6/1/2027, KeyBank NA (a) | 3,375,000 | 3,375,000 |
Port Authority of New York & New Jersey: |
|
|
3.67%, 10/11/2007 | 4,500,000 | 4,500,000 |
3.7%, 7/6/2007 | 1,000,000 | 1,000,000 |
Schoharie County, NY, Industrial Development Agency, Civic Facility Revenue, Bassett Hospital Project, Series A, 3.8%*, 2/1/2021, KeyBank NA (a) | 430,000 | 430,000 |
Seneca County, NY, Industrial Development Agency, Solid Waste Disposal Revenue, Macon Trust, Series W, 144A, AMT, 3.83%*, 10/1/2035 | 3,500,000 | 3,500,000 |
Tompkins County, NY, Industrial Development Agency Revenue, Civic Facilities, Series A, 3.76%*, 12/1/2021, Citizens Bank NA (a) | 1,105,000 | 1,105,000 |
Tompkins County, NY, Industrial Development Agency Revenue, Civic Facilities, Tomkins Cortland, 3.76%*, 1/1/2037, Citizens Bank NA (a) | 5,400,000 | 5,400,000 |
Yates County, NY, Industrial Development Agency, Civic Facility Revenue, Series B, 3.75%*, 9/1/2015, KeyBank NA (a) | 1,940,000 | 1,940,000 |
123,617,065 | ||
Puerto Rico 2.1% | ||
Puerto Rico, Industrial Tourist Educational, Medical & Environmental Central Facilities, Bristol-Myers Squibb Project, AMT, 3.78%*, 12/1/2030 | 2,500,000 | 2,500,000 |
| % of Net Assets | Value ($) |
|
| |
Total Investment Portfolio (Cost $126,117,065)+ | 106.1 | 126,117,065 |
Other Assets and Liabilities, Net | (6.1) | (7,262,900) |
Net Assets | 100.0 | 118,854,165 |
+ The cost for federal income tax purposes was $126,117,065.
(a) Security incorporates a letter of credit from a major bank.
(b) Bond is insured by one of these companies.
Insurance Coverage | As a % of Total Investment Portfolio |
Ambac Financial Group | 5.8 |
Financial Guaranty Insurance Company | 2.7 |
Financial Security Assurance, Inc. | 4.4 |
MBIA Corp. | 4.9 |
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
The accompanying notes are an integral part of the financial statements.
Statement of Assets and Liabilities as of June 30, 2007 (Unaudited) | |
Assets | NY Tax Free Money Fund |
Investments in securities, valued at amortized cost | $ 126,117,065 |
Receivable for investments sold | 2,637,185 |
Due to custodian | 1,201,697 |
Interest receivable | 584,783 |
Other assets | 30,567 |
Total assets | 130,571,297 |
Liabilities | |
Cash overdraft | 2,931,822 |
Payable for investments purchased | 8,522,064 |
Dividends payable | 95,727 |
Accrued management fee | 7,491 |
Other accrued expenses and payables | 160,028 |
Total liabilities | 11,717,132 |
Net assets, at value | $ 118,854,165 |
Net Assets | |
Net assets consist of: Undistributed net investment income | 128 |
Accumulated net realized gain (loss) | 740 |
Paid-in capital | 118,853,297 |
Net assets, at value | $ 118,854,165 |
Net Asset Value | |
Investment Class Net Asset Value, offering and redemption price per share ($77,611,281 ÷ 77,604,199 shares of capital stock outstanding, $.01 par value, unlimited number of shares authorized) | $ 1.00 |
Tax-Exempt NY Money Market Fund Class Net Asset Value, offering and redemption price per share ($41,242,884 ÷ 41,242,681 shares of capital stock outstanding, $.01 par value, unlimited number of shares authorized) | $ 1.00 |
The accompanying notes are an integral part of the financial statements.
Statement of Operations for the six months ended June 30, 2007 (Unaudited) | |
Investment Income | NY Tax Free Money Fund |
Income: Interest | $ 1,550,852 |
Expenses: Management fee | 54,006 |
Administration fees | 41,707 |
Services to shareholders | 87,149 |
Custodian fees | 3,906 |
Distribution service fees | 133,021 |
Auditing | 20,250 |
Legal | 8,931 |
Trustees' fees and expenses | 5,685 |
Reports to shareholders | 21,256 |
Registration fees | 10,995 |
Other | 3,612 |
Total expenses before expense reductions | 390,518 |
Expense reductions | (53,590) |
Total expenses after expense reductions | 336,928 |
Net investment income | 1,213,924 |
Net realized gain (loss) on investment transactions | 740 |
Net increase (decrease) in net assets resulting from operations | $ 1,214,664 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets — NY Tax Free Money Fund | ||
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2007 (Unaudited) | Year Ended December 31, 2006 |
Operations: Net investment income | $ 1,213,924 | $ 2,200,822 |
Net realized gain (loss) on investment transactions | 740 | 3,626 |
Net increase (decrease) in net assets resulting from operations | 1,214,664 | 2,204,448 |
Distributions to shareholders from: Net investment income: Investment Class | (889,896) | (2,200,822) |
Tax-Exempt NY Money Market Fund Class* | (323,900) | — |
Fund share transactions: Investment Class Proceeds from shares sold | 258,839,129 | 224,192,113 |
Reinvestment of distributions | 334,934 | 552,803 |
Cost of shares redeemed | (236,182,492) | (260,266,744) |
Net increase (decrease) in net assets from Investment Class share transactions | 22,991,571 | (35,521,828) |
Tax-Exempt NY Money Market Fund Class Proceeds from shares sold | 31,887,633 | — |
Net assets acquired in tax-free reorganization | 42,838,790 | — |
Reinvestment of distributions | 317,405 | — |
Cost of shares redeemed | (33,801,147) | — |
Net increase (decrease) in net assets from Tax-Exempt NY Money Market Fund Class share transactions | 41,242,681 | — |
Increase (decrease) in net assets | 64,235,120 | (35,518,202) |
Net assets at beginning of period | 54,619,045 | 90,137,247 |
Net assets at end of period (including undistributed net investment income of $128 and $0, respectively) | $ 118,854,165 | $ 54,619,045 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets — NY Tax Free Money Fund (continued) | ||
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2007 (Unaudited) | Year Ended December 31, 2006 |
Other Information Investment Class | ||
Shares outstanding at beginning of period | 54,612,628 | 90,134,456 |
Shares sold | 258,839,129 | 224,192,113 |
Shares issued to shareholders in reinvestment of distributions | 334,934 | 552,803 |
Shares redeemed | (236,182,492) | (260,266,744) |
Net increase (decrease) in Fund shares from Investment Class Share transactions | 22,991,571 | (35,521,828) |
Shares outstanding at end of period | 77,604,199 | 54,612,628 |
Tax-Exempt NY Money Market Fund Class* |
|
|
Shares outstanding at beginning of period | — | — |
Shares sold | 31,899,385 | — |
Shares issued in tax-free reorganization | 42,827,038 | — |
Shares issued to shareholders in reinvestment of distributions | 317,405 | — |
Shares redeemed | (33,801,147) | — |
Net increase (decrease) in Fund shares from Tax-Exempt NY Money Market Fund Class share transactions | 41,242,681 | — |
Shares outstanding at end of period | 41,242,681 | — |
The accompanying notes are an integral part of the financial statements.
NY Tax Free Money Fund Investment Class | ||||||
Years Ended December 31, | 2007a | 2006 | 2005 | 2004 | 2003 | 2002 |
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 | .015 | .027 | .017 | .005 | .003 | .006 |
Net realized and unrealized gain (loss) on investment transactionsb | — | — | — | — | — | — |
Total from investment operations | .015 | .027 | .017 | .005 | .003 | .006 |
Less distributions from: Net investment income | (.015) | (.027) | (.017) | (.005) | (.003) | (.006) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%)c | 1.47** | 2.71 | 1.70 | .47 | .32 | .65 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 78 | 55 | 90 | 110 | 89 | 113 |
Ratio of expenses before expense reductions (%) | .93* | .98 | .87 | .88 | .83 | .82 |
Ratio of expenses after expense reductions (%) | .75* | .75 | .75 | .75 | .75 | .75 |
Ratio of net investment income (%) | 2.98* | 2.67 | 1.67 | .49 | .33 | .65 |
a For the six months ended June 30, 2007 (Unaudited). b Amount is less than $.005 per share. c Total return would have been lower had certain expenses not been reduced. * Annualized ** Not annualized |
Tax Free Money Fund Investment
Asset Allocation | 6/30/07 | 12/31/06 |
|
|
|
Municipal Investments Municipal Variable Rate Demand Notes | 89% | 83% |
Municipal Bonds and Notes | 11% | 17% |
| 100% | 100% |
Weighted Average Maturity |
|
|
|
|
|
Tax Free Money Fund Investment | 14 days | 29 days |
iMoneyNet National Retail Tax Free Money Funds Average* | 23 days | 31 days |
Asset allocation and weighted average maturity are subject to change.
For more complete details about the Fund's holdings, see page 17. A quarterly Fact Sheet is available upon request. Information concerning portfolio holdings of the Funds as of month end will be posted to www.dws-scudder.com on or after the last day of the following month. In addition, the Funds' top ten holdings and other information about the Funds is posted on www.dws-scudder.com as of the calendar quarter-end on or after the 15th day following quarter-end. Please see the Account Management Resources section for more contact information.
Following the Funds' fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC on Form N-Q. The form will be available on the SEC's Web site at www.sec.gov, and it also may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling (800) SEC-0330.
Investment Portfolio as of June 30, 2007 (Unaudited)
Tax Free Money Fund Investment
| Principal Amount ($) | Value ($) |
|
| |
Municipal Investments 99.1% | ||
Alabama 4.8% | ||
Southeast, AL, Gas District Alabama Revenue, Supply Project, Series A, 3.91%*, 8/1/2027 | 7,000,000 | 7,000,000 |
California 0.8% | ||
San Bernardino County, CA, Certificates of Participation, Medical Center Financing Project, 3.63%*, 8/1/2026 (a) | 1,100,000 | 1,099,934 |
Colorado 4.3% | ||
Colorado, Educational & Cultural Facilities Authority Revenue, National Jewish Federal Bond Program, Series A1, 3.86%*, 9/1/2033, Bank of America NA (b) | 1,800,000 | 1,800,000 |
Colorado, Postsecondary Educational Facilities Authority Revenue, Mullen High School Project, 3.83%*, 8/1/2017, Wells Fargo Bank NA (b) | 2,690,000 | 2,690,000 |
Colorado Springs, CO, Colorado College Project, 3.93%*, 6/1/2029 | 1,800,000 | 1,800,000 |
6,290,000 | ||
Florida 6.3% | ||
Florida, State Board of Education Lottery Revenue, Series R-542, 144A, 3.79%*, 7/1/2025 (a) | 695,000 | 695,000 |
Highlands County, FL, Health Facilities Authority Revenue, Adventist Health System, Series A, 3.8%*, 11/15/2032, SunTrust Bank (b) | 525,000 | 525,000 |
Jacksonville, FL, Electric Authority 3.81%*, 7/10/2007 | 1,800,000 | 1,800,000 |
Jacksonville, FL, Electric Authority Revenue, 3.81%, 7/10/2007 | 2,000,000 | 2,000,000 |
Miami-Dade County, FL, General Obligation, 3.8%, 9/6/2007 | 1,000,000 | 1,000,000 |
Orange County, FL, Health Facilities Authority Revenue, Hospital Orlando Regional Healthcare, Series A-1, 3.9%*, 10/1/2041 (a) | 1,300,000 | 1,300,000 |
Palm Beach County, FL, Zoological Society, Inc. Project, 3.74%*, 5/1/2031, Northen Trust Company (b) | 2,000,000 | 2,000,000 |
9,320,000 | ||
Illinois 4.0% | ||
Chicago, IL, General Obligation, Series Z-10, 144A, 3.79%*, 6/29/2029 (a) | 3,058,000 | 3,058,000 |
Crestwood, IL, Trinity Christian College Revenue, 3.77%*, 9/1/2028, Fifth Third Bank (b) | 2,770,000 | 2,770,000 |
5,828,000 | ||
Indiana 1.9% | ||
Indiana, State Educational Facilities Authority Revenue, St. Mary Woods Project, 3.83%*, 4/1/2024, Bank One NA (b) | 2,800,000 | 2,800,000 |
Iowa 0.7% | ||
Iowa, Finance Authority Small Business Development Revenue, Corp. Center Associates LP Project, 3.79%*, 9/1/2015, Wells Fargo Bank N.A. (b) | 1,000,000 | 1,000,000 |
Kentucky 8.3% | ||
Jeffersontown, KY, Lease Program Revenue, Kentucky League of Cities Funding Trust, 3.87%*, 3/1/2030, US Bank NA (b) | 3,820,000 | 3,820,000 |
Lexington-Fayette Urban County, KY, Industrial Development Revenue, YMCA Central Kentucky, Inc. Project, 3.83%*, 7/1/2019, Bank One Kentucky NA (b) | 1,460,000 | 1,460,000 |
Shelby County, KY, Lease Revenue, Series A, 3.86%*, 9/1/2034, US Bank NA (b) | 4,515,000 | 4,515,000 |
Somerset, KY, Blakley Family YMCA, Inc. Project, 3.79%*, 4/1/2015, Fifth Third Bank (b) | 2,415,000 | 2,415,000 |
12,210,000 | ||
Louisiana 2.0% | ||
UBS Municipal (CRVS), Various States, Floaters 07-1023, 144A, 3.79%*, 6/1/2041 (a) | 3,000,000 | 3,000,000 |
Massachusetts 2.4% | ||
Massachusetts, State General Obligation, Central Artery, Series B, 3.92%*, 12/1/2030 | 1,200,000 | 1,200,000 |
Massachusetts, State Health & Educational Facilities Authority Revenue, Capital Asset Program, Series C, 3.85%*, 7/1/2010 (a) | 2,300,000 | 2,300,000 |
3,500,000 | ||
Michigan 4.0% | ||
Michigan, General Obligation, 3.6%, 10/10/2007 | 2,500,000 | 2,496,959 |
Michigan, Higher Education Facilities Authority Revenue, Limited Obligation, Spring Arbor, 3.76%*, 11/1/2030, Comerica Bank (b) | 3,435,000 | 3,435,000 |
5,931,959 | ||
Minnesota 4.3% | ||
Minnesota, Enhanced Return Puttable Floating Option, Tax Exempt Receipts, Series 1061, 144A, 3.82%*, 6/1/2013 | 4,250,000 | 4,250,000 |
Minnesota, Rochester Health, 3.67%, 7/12/2007 | 2,000,000 | 2,000,000 |
| 6,250,000 | |
Mississippi 3.2% | ||
Jackson County, MS, Port Facilities Revenue, Chevron USA, Inc. Project, 3.87%*, 6/1/2023 | 4,700,000 | 4,700,000 |
New Jersey 4.7% | ||
New Jersey, Economic Development Authority, School Revenue, Series R-3, 3.83%*, 9/1/2031, Bank of Nova Scotia (b) | 4,375,000 | 4,375,000 |
New Jersey, Toms River School District, 3.7%, 11/21/2007 | 2,500,000 | 2,500,532 |
6,875,532 | ||
New York 3.1% | ||
New York City, NY, Housing Development Corp., Multi-Family Mortgage Revenue, 201 Pearl Street Development, Series A, 3.72%*, 10/15/2041 | 1,200,000 | 1,200,000 |
Onondaga County, NY, Industrial Development Agency, Civic Facility Revenue, YMCA of Greater Syracuse, Series A, 3.8%*, 11/1/2025, Citizens Bank NA (b) | 2,200,000 | 2,200,000 |
Otsego County, NY, Industrial Development Agency, Civic Facility Revenue, Noonan Community Service Corp. Project, Series A, 3.76%*, 3/1/2025, Wilber National Bank (b) | 1,200,000 | 1,200,000 |
4,600,000 | ||
Ohio 1.4% | ||
Ohio, State Higher Educational Facility Community Revenue, Pooled Program, Series A, 3.83%*, 9/1/2020, Fifth Third Bank (b) | 2,090,000 | 2,090,000 |
Oklahoma 3.0% | ||
Payne County, OK, Economic Development Authority, Student Housing Revenue, OSUF Phase III Project, 3.76%*, 7/1/2032 (a) | 4,400,000 | 4,400,000 |
Oregon 4.3% | ||
Medford, OR, Hospital Facilities Authority Revenue, Cascade Manor Project, 3.86%*, 7/1/2036, KBC Bank N V (b) | 1,380,000 | 1,380,000 |
Oregon, State General Obligation, Veterans Welfare, Series 86, 3.9%*, 6/1/2040 | 5,000,000 | 5,000,000 |
6,380,000 | ||
Pennsylvania 7.5% | ||
Berks County, PA, Industrial Development Authority Revenue, Richard J. Caron Foundation Project, 3.84%*, 9/1/2025, Wachovia Bank NA (b) | 2,545,000 | 2,545,000 |
Delaware Valley, PA, Regional Financing Authority, Locating Government Revenue, Series B, 3.68%*, 6/1/2042, Bayerische Landesbank (b) | 5,700,000 | 5,699,145 |
Lehman Municipal Trust Receipts, Various States, Series 07-P11, 144A, 3.9%*, 7/1/2029 (a) | 1,800,000 | 1,800,000 |
Philadelphia, PA, Hospitals & Higher Education Facilities Authority Revenue, Children's Hospital Project, Series B, 3.86%*, 7/1/2025 | 1,000,000 | 1,000,000 |
11,044,145 | ||
Texas 17.5% | ||
Corpus Christi, TX, Utility System Revenue, Series PT-1816, 144A, 3.81%*, 7/15/2010 (a) | 2,280,000 | 2,280,000 |
Cypress-FairBanks, TX, Independent School District, Series PT-2512, 144A, 3.8%*, 2/15/2022 | 4,140,000 | 4,140,000 |
Harris County, TX, Health Facilities Development Corp. Revenue, YMCA Greater Houston Area, 3.86%*, 7/1/2037, JPMorgan Chase Bank (b) | 1,600,000 | 1,600,000 |
Harris County, TX, Tax Anticipation Notes, 4.5%, 2/29/2008 | 2,000,000 | 2,010,893 |
Texas, Hidalgo Willacy Housing Finance Corp., Multi-Family Housing Revenue, Series F18J, 144A, 3.82%*, 1/1/2039 | 2,000,000 | 2,000,000 |
Texas, State Tax & Revenue Anticipation Notes, 4.5%, 8/31/2007 | 2,000,000 | 2,003,065 |
Texas, State Turnpike Authority, Central Texas Turnpike System Revenue, Series 1407, 144A, 3.79%*, 8/15/2042 (a) | 2,500,000 | 2,500,000 |
Texas, University of Texas Systems Revenue Financing, 3.71%, 7/10/2007 | 2,000,000 | 2,000,000 |
Texas, Water Development Board Revenue, Series PT-2187, 144A, 3.8%*, 7/15/2021 | 3,735,000 | 3,735,000 |
Wichita Falls, TX, Water & Sewer Revenue, Series 1713, 144A, 3.8%*, 8/1/2014 (a) | 3,425,000 | 3,425,000 |
25,693,958 | ||
Utah 1.9% | ||
Murray City, UT, Hospital Revenue, IHC Health Services, Inc., Series D, 3.9%*, 5/15/2036 | 1,950,000 | 1,950,000 |
Salt Lake County, UT, Pollution Control Revenue, Service Station Holdings Project, 3.92%*, 2/1/2008 | 805,000 | 805,000 |
2,755,000 | ||
Vermont 1.4% | ||
Vermont, State Student Assistance Corp., Student Loan Revenue, 3.78%*, 1/1/2008, State Street Bank & Trust Co. (b) | 2,000,000 | 2,000,000 |
| ||
Virginia 0.8% | ||
Loudoun County, VA, Industrial Development Authority Revenue, Howard Hughes Medical Institute, Series A, 3.92%*, 2/15/2038 | 1,100,000 | 1,100,000 |
| ||
Washington 5.3% | ||
Spokane, WA, Public Facilities District Hotel, Motel & Sales Use Tax, Series R-2041, 144A, 3.79%*, 12/1/2023 (a) | 3,110,000 | 3,110,000 |
Washington, State Housing Finance Commission, Nonprofit Housing Revenue, Mirabella Project, Series A, 3.88%*, 3/1/2036, HSH Nordbank AG (b) | 560,000 | 560,000 |
Washington, State Housing Finance Commission, Nonprofit Revenue, YMCA Tacoma-Pierce County Project, 3.76%*, 12/1/2032, US Bank NA (b) | 4,170,000 | 4,170,000 |
7,840,000 | ||
Multi-State 1.2% | ||
UBS Municipal (CRVS), Various States, 144A, 3.83%*, 8/1/2036 | 1,745,000 | 1,745,000 |
| % of Net Assets | Value ($) |
|
| |
Total Investment Portfolio (Cost $145,453,528)+ | 99.1 | 145,453,528 |
Other Assets and Liabilities, Net | 0.9 | 1,364,221 |
Net Assets | 100.0 | 146,817,749 |
+ The cost for federal income tax purposes was $145,453,528.
(a) Bond is insured by one of these companies.
Insurance Coverage | As a % of Total Investment Portfolio |
Ambac Financial Group | 6.4 |
Financial Guaranty Insurance Company | 6.5 |
Financial Security Assurance, Inc. | 2.5 |
MBIA Corp. | 4.5 |
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
The accompanying notes are an integral part of the financial statements.
Statements of Assets and Liabilities as of June 30, 2007 (Unaudited) | |
Assets | Tax Free Money Fund Investment |
Investments in securities valued at amortized cost | $ 145,453,528 |
Cash | 2,313,624 |
Receivable for investments sold | 755,000 |
Interest receivable | 891,702 |
Other assets | 18,237 |
Total assets | 149,432,091 |
Liabilities | |
Payable for investments purchased | 2,306,374 |
Dividends payable | 223,307 |
Accrued management fee | 7,616 |
Other accrued expenses and payables | 77,045 |
Total liabilities | 2,614,342 |
Net assets, at value | $ 146,817,749 |
Net Assets | |
Net assets consist of: Accumulated net realized gain (loss) | (1,339) |
Paid-in capital | 146,819,088 |
Net assets, at value | $ 146,817,749 |
Net Asset Value | |
Net Asset Value, offering and redemption price per share ($146,817,749 ÷ 146,815,589 shares outstanding, $.001 par value, unlimited number of shares authorized) | $ 1.00 |
The accompanying notes are an integral part of the financial statements.
Statements of Operations for the six months ended June 30, 2007 (Unaudited) | |
Investment Income | Tax Free Money Fund Investment |
Income: Interest | $ 1,816,164 |
Expenses: Management fee | 73,587 |
Administration fee | 49,058 |
Services to shareholders | 178,160 |
Distribution service fees | 112,521 |
Auditing | 20,395 |
Trustees' fees and expenses | 11,147 |
Reports to shareholders | 9,857 |
Total expenses before expense reductions | 454,725 |
Expense reductions | (86,800) |
Total expenses after expense reductions | 367,925 |
Net investment income | 1,448,239 |
Net realized gain (loss) on investment transactions | — |
Net increase (decrease) in net assets resulting from operations | $ 1,448,239 |
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, 2007 (Unaudited) | Year Ended December 31, 2006 |
Operations: Net investment income | $ 1,448,239 | $ 3,435,702 |
Net realized gain (loss) on investment transactions | — | 818 |
Net increase (decrease) in net assets resulting from operations | 1,448,239 | 3,436,520 |
Distributions to shareholders from: Net investment income | (1,448,239) | (3,435,701) |
Fund share transactions: Proceeds from shares sold | 230,790,589 | 566,794,514 |
Reinvestment of distributions | 198,387 | 1,012,569 |
Cost of shares redeemed | (194,534,469) | (631,167,896) |
Net increase (decrease) in net assets from Fund share transactions | 36,454,507 | (63,360,813) |
Increase (decrease) in net assets | 36,454,507 | (63,359,994) |
Net assets at beginning of period | 110,363,242 | 173,723,236 |
Net assets at end of period | $ 146,817,749 | $ 110,363,242 |
Other Information | ||
Shares outstanding at beginning of period | 110,361,083 | 173,721,896 |
Shares sold | 230,790,588 | 566,794,514 |
Shares issued to shareholders in reinvestment of distributions | 198,387 | 1,012,569 |
Shares redeemed | (194,534,469) | (631,167,896) |
Net increase (decrease) in Fund shares | 36,454,506 | (63,360,813) |
Shares outstanding at end of period | 148,815,589 | 110,361,083 |
The accompanying notes are an integral part of the financial statements.
Tax Free Money Fund Investment
Years Ended December 31, | 2007a | 2006 | 2005 | 2004 | 2003 | 2002 |
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 | .015 | .027 | .017 | .005 | .003 | .007 |
Net realized and unrealized gain (loss) on investment transactionsb | — | — | — | — | — | — |
Total from investment operations | .015 | .027 | .017 | .005 | .003 | .007 |
Less distributions from: Net investment income | (.015) | (.027) | (.017) | (.005) | (.003) | (.007) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%)c | 1.47** | 2.71 | 1.72 | .49 | .33 | .72 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 147 | 110 | 174 | 135 | 168 | 166 |
Ratio of expenses before expense reductions (%) | .93* | .88 | .82 | .84 | .80 | .80 |
Ratio of expenses after expense reductions (%) | .75* | .75 | .75 | .75 | .75 | .75 |
Ratio of net investment income (%) | 2.96* | 2.61 | 1.73 | .46 | .32 | .72 |
a For the six months ended June 30, 2007 (Unaudited). b Amount is less than $.0005 per share. c Total return would have been lower had certain expenses not been reduced. * Annualized ** Not annualized |
Notes to Financial Statements (Unaudited)
A. Significant Accounting Policies
DWS Advisor Funds (the ``Trust'') is registered under the Investment Company Act of 1940, as amended (the ``1940 Act''), as a Massachusetts business trust. NY Tax Free Money Fund 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 is an open-end, diversified management investment company.
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.
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 rate to maturity of any discount or premium.
In September 2006, the Financial Accounting Standards Board ("FASB") released Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. FAS 157 is effective for fiscal years beginning after November 15, 2007. As of June 30, 2007, management does not believe the adoption of FAS 157 will impact the amounts reported in the financial statements, however, additional disclosures will be required about the inputs used to develop the measurements of fair value and the effect of certain of the measurements reported in the statement of operations for a fiscal period.
Federal Income Taxes. Each Fund's policy is to comply with the requirements of the Internal Revenue Code of 1986, 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, 2006, Tax Free Money Fund Investment had a net tax basis capital loss carryforward of $1,339, which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until December 31, 2013, whichever occurs first.
In July 2006, FASB issued Interpretation No. 48 ("FIN 48"), "Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109" (the "Interpretation"). The Interpretation establishes for the Fund a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns. Management has evaluated the application of FIN 48 and has determined there is no impact on the Fund's financial statements.
Distributions of Income. 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.
The tax character of current year distributions will be determined at the end of the current fiscal year.
Contingencies. In the normal course of business, the Funds may enter into contracts with service providers that contain general indemnification clauses. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet been made. However, based on experience, the Funds expect the risk of loss to be remote.
Other. Investment transactions are accounted for on a 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. For the period January 1, 2007 through June 30, 2007, Tax Free Money Fund Investment paid a monthly management fee of 0.15% based on its average daily net assets, computed and accrued daily and payable monthly
B. Fees and Transactions with Affiliates
Management Agreement. Under the Investment Management Agreement with Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), an indirect, wholly owned subsidiary of Deutsche Bank AG, the Advisor directs the investments of the Funds in accordance with their investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Funds.
For the period from January 1, 2007 through June 30, 2007, under the Investment Management Agreement with the Advisor, Tax Free Money Fund Investment paid a monthly management fee of 0.15% based on its average daily net assets, computed and accrued daily and payable monthly.
For the period from January 1, 2007 through March 21, 2007, under the Investment Management Agreement with the Advisor, NY Tax Free Money Fund paid a monthly management fee of 0.15% based on its average daily net assets, computed and accrued daily and payable monthly.
Effective March 22, 2007, under the Amended and Restated Management Agreement with the Advisor, NY Tax Free Money Fund pays a monthly management fee of 0.12% based on its average daily net assets, computed and accrued daily and payable monthly.
For the period from January 1, 2006 through September 30, 2007, the Advisor and the Administrator have contractually agreed to waive all or a portion of its fees and/or reimburse or pay certain operating expenses for NY Tax Free Money Fund Investment Class and Tax Free Money Fund Investment, to the extent necessary, to maintain total operating expenses at 0.75% of its average daily net assets (excluding certain expenses such as extraordinary expenses, taxes, proxy/shareholder meeting costs, brokerage, interest, and organizational and offering expenses).
For the period from March 22, 2007 through March 21, 2010, the Advisor and the Administrator have contractually agreed to waive all or a portion of its fees and/or reimburse or pay certain operating expenses of Tax-Exempt NY Money Market Fund Class to the extent necessary, to maintain total operating expenses at 1.00% of its average daily net assets (excluding certain expenses such as extraordinary expenses, taxes, proxy/shareholder meeting costs, brokerage, interest, and organizational and offering expenses).
Accordingly, for the six months ended June 30, 2007, the management fee payable is equal to an annualized effective rate of 0.13% and 0.15% of average daily net assets, computed and accrued daily and payable monthly, for NY Tax Free Money Fund and Tax Free Money Fund, respectively.
Administration Fee. Pursuant to an Administrative Services Agreement with the Advisor, the Advisor provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays the Advisor a fee ("Administration fee") of 0.10% of the Fund's average daily net assets, computed and accrued daily and payable monthly. For the six months ended June 30, 2007, the Advisor received an Administration fee as follows:
| Total Aggregated | Unpaid June 30, 2007 | Annualized Effective Rate |
NY Tax Free Money Fund | $ 41,707 | $ 8,858 | .10% |
Tax Free Money Fund Investment | $ 49,058 | $ 8,558 | .10% |
Service Provider Fees. DWS Scudder Investments Service Company ("DWS-SISC"), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent for the Fund. Pursuant to a sub-transfer agency agreement among DWS-SISC and DST Systems, Inc. ("DST"), DWS-SISC has delegated certain transfer agent and dividend-paying agent functions to DST. DWS-SISC compensates DST out of the shareholder servicing fee it receives from the Fund. For the six months ended June 30, 2007, the amount charged to the Funds by DWS-SISC were as follows:
| Total Aggregated | Waived | Unpaid June 30, 2007 |
NY Tax Free Money Fund: Investment Class | $ 74,195 | $ 53,554 | $ 20,641 |
NY Tax Free Money Fund: Tax-Exempt NY Money Market Fund Class | $ 12,652 | $ — | $ 6,840 |
Tax Free Money Fund Investment | $ 177,858 | $ 86,564 | $ — |
Distribution and Service Fees. DWS Scudder Distributors, Inc. ("DWS-SDI") is the Fund's Distributor. The Tax-Exempt NY Money Market Fund Class pays the Distributor an annual fee, pursuant to Rule 12b-1, based on its average daily net assets, which is calculated daily and payable monthly at 0.50% of the Tax-Exempt NY Money Market Fund Class average daily net assets. For the period from March 22, 2007 through June 30, 2007, the Distribution Fee was as follows:
| Total Aggregated | Unpaid June 30, 2007 |
NY Tax Free Money Fund: | $ 57,507 | $ 16,968 |
In addition, DWS-SDI provides information and administrative services ("Service Fee") to the Investment Class of the Fund at an annual rate up to 0.25% of average daily net assets of the Investment Class. DWS-SDI in turn has various agreements with financial services firms that provide these services and pays these fees based upon the assets of the shareholder accounts the firms service. A portion of these fees may be paid pursuant to a Rule 12b-1 plan. For the six months ended June 30, 2007, the Service Fee was as follows:
| Total Aggregated | Unpaid at June 30, 2007 | Annualized Effective Rate |
NY Tax Free Money Fund: | $ 75,514 | $ 10,286 | $ .25% |
Typesetting and Filing Service Fees. Under an agreement with DIMA, DIMA is compensated for providing typesetting and certain regulatory filing services to the Funds. For the six months ended June 30, 2007, the amount charged to each Fund by DIMA included in the Statement of Operations under "reports to shareholders" is as follows:
| Total Aggregated | Unpaid at June 30, 2007 |
NY Tax Free Money Fund | $ 12,820 | $ 7,699 |
Tax Free Money Fund Investment | $ 4,985 | $ 8,577 |
Trustees' Fees and Expenses. As compensation for his or her services, each Independent Trustee receives an aggregate annual fee, plus a fee for each meeting attended (plus reimbursement for reasonable out-of-pocket expenses incurred in connection with his or her attendance at board and committee meetings) from each fund in the Fund Complex for which he or she serves. In addition, the Chairperson of the Board and the Chairperson of each committee of the Board receives additional compensation for their services. Payment of such fees and expenses is allocated among all such funds described above in direct proportion to their relative net assets.
C. Fee Reductions
For the six months ended June 30, 2007, the Funds have entered into arrangements with its custodian whereby credits realized as a result of uninvested cash advances were used to reduce a portion of each Fund's expenses. During the six months ended June 30, 2007, the custodian fees were reduced under these agreements as follows:
| Amount |
NY Tax Free Money Fund | $ 36 |
Tax Free Money Fund Investment | $ 236 |
D. Line of Credit Agreement
The Funds and several other affiliated funds (the ``Participants'') share in a $750 million revolving credit facility administered by JPMorgan Chase Bank N.A. for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated, based upon net assets, among each of the Participants. Interest is calculated at the Federal Funds Rate plus 0.35 percent. Each Fund may borrow up to a maximum of 33 percent of its net assets under the agreement.
E. Regulatory Matters and Litigation
Regulatory Settlements. On December 21, 2006, Deutsche Asset Management ("DeAM") settled proceedings with the Securities and Exchange Commission ("SEC") and the New York Attorney General on behalf of Deutsche Asset Management, Inc. ("DAMI") and Deutsche Investment Management Americas Inc. ("DIMA"), the investment advisors to many of the DWS Scudder funds, regarding allegations of improper trading of fund shares at DeAM and at the legacy Scudder and Kemper organizations prior to their acquisition by DeAM in April 2002. These regulators alleged that although the prospectuses for certain funds in the regulators' view indicated that the funds did not permit market timing, DAMI and DIMA breached their fiduciary duty to those funds in that their efforts to limit trading activity in the funds were not effective at certain times. The regulators also alleged that DAMI and DIMA breached their fiduciary duty to certain funds by entering into certain market timing arrangements with investors. These trading arrangements originated in businesses that existed prior to the currently constituted DeAM organization, which came together as a result of 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 these trading arrangements. Under the terms of the settlements, DAMI and DIMA neither admitted nor denied any wrongdoing.
The terms of the SEC settlement, which identified improper trading in the legacy Deutsche and Kemper mutual funds only, provide for payment of disgorgement in the amount of $17.2 million. The terms of the settlement with the New York Attorney General provide for payment of disgorgement in the amount of $102.3 million, which is inclusive of the amount payable under the SEC settlement, plus a civil penalty in the amount of $20 million. The total amount payable by DeAM, approximately $122.3 million, would be distributed to funds in accordance with a distribution plan to be developed by a distribution consultant. 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 have already been reserved.
Among the terms of the settled orders, DeAM is subject to certain undertakings regarding the conduct of its business in the future, including: formation of a Code of Ethics Oversight Committee to oversee all matters relating to issues arising under the advisors' Code of Ethics; establishment of an Internal Compliance Controls Committee having overall compliance oversight responsibility of the advisors; engagement of an Independent Compliance Consultant to conduct a comprehensive review of the advisors' supervisory compliance and other policies and procedures designed to prevent and detect breaches of fiduciary duty, breaches of the Code of Ethics and federal securities law violations by the advisors and their employees; and commencing in 2008, the advisors shall undergo a compliance review by an independent third party.
In addition, DeAM is subject to certain further undertakings relating to the governance of the mutual funds, including that: at least 75% of the members of the Boards of Trustees/Directors overseeing the DWS Funds continue to be independent of DeAM; the Chairmen of the DWS Funds' Boards of Trustees/Directors continue to be independent of DeAM; DeAM maintain existing management fee reductions for certain funds for a period of five years and not increase management fees for these certain funds during this period; the funds retain a senior officer (or independent consultants, as applicable) responsible for assisting in the review of fee arrangements and monitoring compliance by the funds and the investment advisors with securities laws, fiduciary duties, codes of ethics and other compliance policies, the expense of which shall be borne by DeAM; and periodic account statements, fund prospectuses and the mutual funds' web site contain additional disclosure and/or tools that assist investors in understanding the fees and costs associated with an investment in the funds and the impact of fees and expenses on fund returns.
DeAM has also settled proceedings with the Illinois Secretary of State regarding market timing matters. The terms of the Illinois settlement provide for investor education contributions totaling approximately $4 million and a payment in the amount of $2 million to the Securities Audit and Enforcement Fund.
On September 28, 2006, the SEC and the National Association of Securities Dealers ("NASD") announced final agreements in which Deutsche Investment Management Americas Inc. ("DIMA"), Deutsche Asset Management, Inc. ("DAMI") and Scudder Distributors, Inc. ("SDI") (now known as DWS Scudder Distributors, Inc.) settled administrative proceedings regarding disclosure of brokerage allocation practices in connection with sales of the Scudder Funds' (now known as the DWS Scudder Funds) shares during 2001-2003. The agreements with the SEC and NASD are reflected in orders which state, among other things, that DIMA and DAMI failed to disclose potential conflicts of interest to the fund Boards and to shareholders relating to SDI's use of certain funds' brokerage commissions to reduce revenue sharing costs to broker-dealer firms with whom it had arrangements to market and distribute Scudder Fund shares. These directed brokerage practices were discontinued in October 2003.
Under the terms of the settlements, in which DIMA, DAMI and SDI neither admitted nor denied any of the regulators' findings, DIMA, DAMI and SDI agreed to pay disgorgement, prejudgment interest and civil penalties in the total amount of $19.3 million. The portion of the settlements distributed to the funds was approximately $17.8 million and was paid to the funds as prescribed by the settlement orders based upon the amount of brokerage commissions from each fund used to satisfy revenue sharing agreements with broker-dealers who sold fund shares. Based on the prescribed settlement order, the Funds were not entitled to a portion of the settlement.
As part of the settlements, DIMA, DAMI and SDI also agreed to implement certain measures and undertakings relating to revenue sharing payments including making additional disclosures in the fund Prospectuses or Statements of Additional Information, adopting or modifying relevant policies and procedures and providing regular reporting to the fund Boards.
Private Litigation Matters. The matters alleged in the regulatory settlements described above also serve as the general basis of a number of private class action lawsuits involving the DWS funds. These lawsuits name as defendants various persons, including certain DWS funds, the funds' investment advisors and their affiliates, and certain individuals, including in some cases fund Trustees/Directors, officers, and other parties. Each DWS fund's investment advisor has agreed to indemnify the applicable DWS funds in connection with these lawsuits, or other lawsuits or regulatory actions that may be filed making similar allegations.
Based on currently available information, the funds' investment advisors believe the likelihood that the pending lawsuits will have a material adverse financial impact on a DWS fund is remote and such actions are not likely to materially affect their ability to perform under their investment management agreements with the DWS funds
F. Acquisition of Assets
On March 22, 2007, the NY Tax Free Money Fund acquired all of the net assets of Investor's Municipal Cash Fund: Tax-Exempt New York Money Market Fund. The acquisition was accomplished by a tax-free exchange of 42,827,038 shares and net assets at that date of $42,838,790, were combined with those of the NY Tax Free Money Fund. The aggregate net assets of the NY Tax Free Money Fund immediately before the acquisition were $59,475,160. The combined net assets of the NY Tax Free Money Fund immediately following the acquisition were $102,313,950.
A Special Meeting of the Shareholders of the Tax-Free Money Fund Investment series of DWS Advisor Funds (the "Fund") was initially held on December 8, 2006 and then reconvened on May 25, 2007 at the offices of Deutsche Investment Management Americas Inc. (part of Deutsche Asset Management), 345 Park Avenue, New York, New York 10017. The following matter was voted on by the Shareholders of said Fund (the resulting votes are presented below):
1. To approve the proposed Agreement and Plan of Reorganization of the Fund culminating in the transfer of all of the Fund's assets and the assumption of all of the Fund's liabilities in exchange for shares of the Tax-Exempt Portfolio series of Cash Account Trust on a tax-free basis for federal income tax purposes and the complete liquidation and termination of the Fund.*
Number of Votes: | ||
For | Against | Abstain |
18,247,932.180 | 578,147.510 | 8,704.280 |
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Automated Information Line | Institutional Investor Services (800) 703-1313 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 219210Kansas 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 (click on "proxy voting"at the bottom of the page) — 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 PlazaChicago, IL 60606-5808 www.dws-scudder.com (800) 621-1148 |
| NY Tax Free Money Fund — Investment Class | Tax Free Money Fund Investment |
Nasdaq Symbol | BNYXX | BTXXX |
CUSIP Number | 23336Y 698 | 23336Y 714 |
Fund Number | 844 | 839 |
This privacy statement is issued by DWS Scudder Distributors, Inc., Deutsche Investment Management Americas Inc., DeAM Investor Services, Inc., DWS Trust Company and the DWS Funds.
We never sell customer lists or individual client information. We consider privacy fundamental to our client relationships and adhere to the policies and practices described below to protect current and former clients' information. Internal policies are in place to protect confidentiality, while allowing client needs to be served. Only individuals who need to do so in carrying out their job responsibilities may access client information. We maintain physical, electronic and procedural safeguards that comply with federal and state standards to protect confidentiality. These safeguards extend to all forms of interaction with us, including the Internet.
In the normal course of business, clients give us nonpublic personal information on applications and other forms, on our websites, and through transactions with us or our affiliates. Examples of the nonpublic personal information collected are name, address, Social Security number and transaction and balance information. To be able to serve our clients, certain of this client information is shared with affiliated and nonaffiliated third party service providers such as transfer agents, custodians, and broker-dealers to assist us in processing transactions and servicing your account with us. In addition, we may disclose all of the information we collect to companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements. The organizations described above that receive client information may only use it for the purpose designated by the DWS Scudder Companies listed above.
We may also disclose nonpublic personal information about you to other parties as required or permitted by law. For example, we are required or we may provide information to government entities or regulatory bodies in response to requests for information or subpoenas, to private litigants in certain circumstances, to law enforcement authorities, or any time we believe it necessary to protect the firm.
Questions on this policy may be sent to:
DWS Scudder
Attention: Correspondence �� Chicago
P.O. Box 219415
Kansas City, MO 64121-9415
September 2006
Notes
Notes
Notes
ITEM 2. | CODE OF ETHICS |
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| Not applicable. |
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ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT |
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| Not applicable. |
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ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
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| Not applicable. |
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS |
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| Not Applicable |
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ITEM 6. | SCHEDULE OF INVESTMENTS |
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| Not Applicable |
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ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
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| Not applicable. |
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ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
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| Not applicable. |
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS |
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| Not Applicable. |
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
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| The Committee on Independent Trustees/Directors selects and nominates Independent Trustees/Directors. Fund shareholders may submit nominees that will be considered by the committee when a Board vacancy occurs. Submissions should be mailed to: c/o Dawn-Marie Driscoll, PO Box 100176, Cape Coral, FL 33910. |
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ITEM 11. | CONTROLS AND PROCEDURES |
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| (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. |
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| (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. |
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ITEM 12. | EXHIBITS |
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| (a)(1) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
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| (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 and Tax Free Money Fund Investment, a series of DWS Advisor Funds |
By: | /s/Michael G. Clark |
| Michael G. Clark |
President
Date: | August 24, 2007 |
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 and Tax Free Money Fund Investment, a series of DWS Advisor Funds |
By: | /s/Michael G. Clark |
| Michael G. Clark |
President
Date: | August 24, 2007 |
By: | /s/Paul Schubert |
| Paul Schubert |
Chief Financial Officer and Treasurer
Date: | August 24, 2007 |