UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number | 811-5970 |
Cash Account Trust
(Exact Name of Registrant as Specified in Charter)
345 Park Avenue
New York, NY 10154-0004
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code: (212) 454-7190
Paul Schubert
345 Park Avenue
New York, NY 10154-0004
(Name and Address of Agent for Service)
Date of fiscal year end: | 4/30 |
Date of reporting period: | 10/31/09 |
ITEM 1. | REPORT TO STOCKHOLDERS |
SEMIANNUAL REPORT TO SHAREHOLDERS
Premier Money Market Shares
Money Market Portfolio
Government & Agency Securities Portfolio
Tax-Exempt Portfolio
October 31, 2009
Contents
3 Information About Each Portfolio's Expenses DWS Money Market Portfolio 5 Portfolio Summary 6 Investment Portfolio 11 Financial Statements 16 Financial Highlights DWS Government & Agency Securities Portfolio 17 Portfolio Summary 18 Investment Portfolio 24 Financial Statements 28 Financial Highlights DWS Tax-Exempt Portfolio 29 Portfolio Summary 30 Investment Portfolio 48 Financial Statements 52 Financial Highlights 53 Notes to Financial Statements 70 Investment Management Agreement Approval 85 Summary of Management Fee Evaluation by Independent Fee Consultant 90 Privacy Statement |
This report must be preceded or accompanied by a prospectus. To obtain a summary prospectus, if available, or prospectus for any of our funds, visit www.dws-investments.com. We advise you to consider the fund's objectives, risks, charges and expenses carefully before investing. The summary prospectus and prospectus contain this and other important information about the fund. Please read the prospectus carefully before you invest.
An investment in the Portfolio is not insured or guaranteed by the FDIC or any other government agency. Although the Portfolio seeks to preserve the value of your investment at $1.00 per share, this share price isn't guaranteed and you could lose money by investing in the Portfolio. The share price of money market funds can fall below the $1.00 share price. You should not rely on or expect the Advisor to enter into support agreements or take other actions to maintain the Portfolio's $1.00 share price. The credit quality of the Portfolio's holdings can change rapidly in certain markets, and the default of a single holding could have an adverse impact on the Portfolio's share price. The Portfolio's share price can also be negatively affected during periods of high redemption pressures and/or illiquid markets. The actions of a few large investors in one class of shares of the Portfolio may have a significant adverse effect on the share prices of all classes of shares of the Portfolio. Please read this Portfolio's prospectus for specific details regarding its risk profile.
The Portfolio's policies and procedures for voting proxies for portfolio securities and information about how the Portfolio voted proxies related to its portfolio securities during the 12-month period ended June 30 are available on our Web site — www.dws-investments.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 Portfolio's policies and procedures without charge, upon request, call us toll free at (800) 621-1048.
DWS Investments is part of Deutsche Bank's Asset Management division and, within the US, represents the retail asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment Management Americas Inc. 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 Portfolio's Expenses
As an investor of a Portfolio, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service (12b-1) fees and other Portfolio 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 Portfolio and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recent six-month period, the Portfolios limited these expenses; had they not done so, expenses would have been higher for the Premier Money Market Shares. The example in the table is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (May 1, 2009 to October 31, 2009).
The tables illustrate each Portfolio's expenses in two ways:
• Actual Portfolio Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in each Portfolio using each Portfolio'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% Portfolio Return. This helps you to compare each Portfolio's ongoing expenses (but not transaction costs) with those of other mutual funds using each Portfolio'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.
Premier Money Market Shares
Expenses and Value of a $1,000 Investment for the six months ended October 31, 2009 |
Actual Portfolio Return | Money Market Portfolio | Government & Agency Securities Portfolio | Tax-Exempt Portfolio |
Beginning Account Value 5/1/09 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 10/31/09 | $ 1,000.20 | $ 1,000.10 | $ 1,000.10 |
Expenses Paid per $1,000* | $ 2.67 | $ 1.87 | $ 2.87 |
Hypothetical 5% Portfolio Return | | | |
Beginning Account Value 5/1/09 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 10/31/09 | $ 1,022.53 | $ 1,023.34 | $ 1,022.33 |
Expenses Paid per $1,000* | $ 2.70 | $ 1.89 | $ 2.91 |
* Expenses are equal to each Portfolio's annualized expense ratio, 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 Ratios | Money Market Portfolio | Government & Agency Securities Portfolio | Tax-Exempt Portfolio |
Premier Money Market Shares | .53% | .37% | .57% |
For more information, please refer to each Portfolio's prospectus.
Portfolio Summary
Money Market Portfolio
Asset Allocation (As a % of Investment Portfolio) | 10/31/09 | 4/30/09 |
| | |
Commercial Paper | 27% | 42% |
Short-Term Notes | 24% | 10% |
Government & Agency Obligations | 19% | 19% |
Certificates of Deposit and Bank Notes | 18% | 19% |
Repurchase Agreements | 12% | 7% |
Supranational | — | 2% |
Municipal Bonds and Notes | — | 1% |
| 100% | 100% |
Weighted Average Maturity | 10/31/09 | 4/30/09 |
| | |
Cash Account Trust — Money Market Portfolio | 61 days | 62 days |
iMoneyNet First Tier Retail Money Fund Average* | 50 days | 47 days |
* The Portfolio is compared to its respective iMoneyNet Category: First Tier Retail Money Fund Average — Category includes a widely recognized composite of money market funds that invest in only first tier (highest rating) securities. Portfolio holdings of First Tier funds include US Treasury, US Other, Repos, Time Deposits, Domestic Bank Obligations, Foreign Bank Obligations, First Tier Commercial Paper, Floating Rate Notes and Asset Backed Commercial Paper.
Asset allocation and weighted average maturity are subject to change.
For more complete details about the Portfolio's holdings, see pages 6-10. A quarterly Fact Sheet is available upon request. A complete list of the Portfolio's holdings is posted twice each month on www.dws-investments.com. Portfolio holdings as of the 15th day of each month are posted to the Web site on or after month-end and portfolio holdings as of each month-end are posted to the Web site on or after the 14th day of the following month. More frequent posting of portfolio holdings information may be made from time to time on www.dws-investments.com.
Following the Portfolio's 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 October 31, 2009 (Unaudited)
Money Market Portfolio
| Principal Amount ($) | Value ($) |
| |
Certificates of Deposit and Bank Notes 18.6% |
Australia & New Zealand Banking Group Ltd., 0.29%, 1/14/2010 | 20,000,000 | 20,000,000 |
Bank of Montreal, 0.25%, 12/14/2009 | 25,000,000 | 25,000,000 |
Bank of Tokyo-Mitsubishi UFJ Ltd., 0.28%, 12/18/2009 | 40,000,000 | 40,000,000 |
BNP Paribas: |
| 0.28%, 3/3/2010 | 12,500,000 | 12,500,000 |
| 0.82%, 11/5/2009 | 52,000,000 | 52,000,000 |
Caixa Geral de Depositos SA, 0.27%, 1/5/2010 | 20,000,000 | 20,000,000 |
Dexia Credit Local: |
| 0.49%, 4/5/2010 | 15,000,000 | 15,000,322 |
| 1.06%, 1/4/2010 | 31,500,000 | 31,500,557 |
Landwirtschaftliche Rentenbank, 2.625%, 2/26/2010 | 19,558,000 | 19,666,547 |
Societe Generale, 0.22%, 12/1/2009 | 10,000,000 | 10,000,000 |
Svenska Handelsbanken AB: |
| 0.23%, 1/26/2010 | 20,000,000 | 20,000,477 |
| 0.25%, 2/26/2010 | 18,500,000 | 18,500,596 |
| 0.62%, 11/30/2009 | 32,000,000 | 32,000,514 |
| 0.855%, 11/4/2009 | 28,000,000 | 28,000,012 |
Toronto-Dominion Bank: |
| 0.6%, 1/12/2010 | 25,200,000 | 25,204,018 |
| 0.65%, 4/1/2010 | 10,000,000 | 10,000,000 |
| 0.75%, 2/8/2010 | 30,000,000 | 30,000,000 |
UBS AG, 0.55%, 12/29/2009 | 22,000,000 | 22,000,000 |
Wal-Mart Stores, Inc., 5.321%, 6/1/2010 | 24,000,000 | 24,645,562 |
Total Certificates of Deposit and Bank Notes (Cost $456,018,605) | 456,018,605 |
|
Commercial Paper 26.8% |
Issued at Discount** |
ASB Finance Ltd.: |
| 0.9%, 12/9/2009 | 13,000,000 | 12,987,650 |
| 1.2%, 3/12/2010 | 6,500,000 | 6,471,617 |
Caisse d'Amortissement de la Dette Sociale: |
| 0.48%, 4/19/2010 | 10,500,000 | 10,476,340 |
| 0.65%, 3/12/2010 | 20,000,000 | 19,952,694 |
| 0.7%, 1/8/2010 | 20,000,000 | 19,973,555 |
Citibank Omni Master Trust: |
| 144A, 0.6%, 11/12/2009 | 15,000,000 | 14,997,250 |
| 144A, 0.6%, 11/18/2009 | 13,000,000 | 12,996,317 |
| 144A, 0.6%, 11/25/2009 | 18,000,000 | 17,992,800 |
Danske Corp.: |
| 144A, 0.51%, 1/15/2010 | 28,500,000 | 28,469,719 |
| 144A, 0.6%, 1/11/2010 | 20,000,000 | 19,976,333 |
General Electric Capital Services, Inc., 0.8%, 11/2/2009 | 25,000,000 | 24,999,444 |
Grampian Funding LLC: |
| 144A, 0.38%, 1/20/2010 | 10,000,000 | 9,991,556 |
| 144A, 0.39%, 1/7/2010 | 3,750,000 | 3,747,278 |
| 144A, 0.405%, 1/4/2010 | 20,000,000 | 19,985,600 |
Irish Life & Permanent PLC: |
| 144A, 1.0%, 12/22/2009 | 10,000,000 | 9,985,833 |
| 144A, 1.05%, 12/21/2009 | 10,000,000 | 9,985,417 |
Merck & Co., Inc., 0.14%, 12/16/2009 | 20,000,000 | 19,996,500 |
Nieuw Amsterdam Receivables Corp., 144A, 0.23%, 11/24/2009 | 20,000,000 | 19,997,061 |
NRW.Bank: |
| 0.29%, 1/6/2010 | 10,000,000 | 9,994,683 |
| 0.46%, 11/13/2009 | 50,000,000 | 49,992,333 |
| 0.48%, 2/5/2010 | 11,000,000 | 10,985,920 |
| 0.5%, 1/11/2010 | 20,000,000 | 19,980,278 |
| 0.6%, 11/12/2009 | 11,000,000 | 10,997,983 |
Prudential Funding LLC, 0.25%, 11/2/2009 | 10,000,000 | 9,999,931 |
Scaldis Capital LLC: |
| 0.25%, 11/24/2009 | 18,000,000 | 17,997,125 |
| 0.26%, 11/23/2009 | 33,000,000 | 32,994,757 |
Straight-A Funding LLC: |
| 144A, 0.22%, 11/17/2009 | 40,000,000 | 39,996,089 |
| 144A, 0.28%, 11/5/2009 | 50,000,000 | 49,998,444 |
Swedbank AB: |
| 144A, 0.81%, 3/30/2010 | 20,000,000 | 19,932,950 |
| 144A, 0.82%, 2/19/2010 | 22,000,000 | 21,944,878 |
| 144A, 0.86%, 6/3/2010 | 20,000,000 | 19,897,756 |
| 144A, 0.89%, 5/28/2010 | 20,000,000 | 19,897,156 |
| 144A, 0.99%, 5/12/2010 | 25,000,000 | 24,868,000 |
| 144A, 1.09%, 6/14/2010 | 15,000,000 | 14,897,812 |
Total Commercial Paper (Cost $657,359,059) | 657,359,059 |
|
Short-Term Notes* 24.2% |
Bank of Nova Scotia, 0.253%, 11/23/2010 | 20,000,000 | 20,000,000 |
Barclays Bank PLC, 0.443%, 4/21/2010 | 20,000,000 | 20,000,000 |
Canadian Imperial Bank of Commerce, 0.2%, 7/26/2010 | 20,000,000 | 20,000,000 |
Commonwealth Bank of Australia, 144A, 0.385%, 6/24/2010 | 30,000,000 | 30,000,000 |
Governor & Co. of the Bank of Ireland: |
| 0.625%, 1/25/2010 | 6,000,000 | 6,000,000 |
| 0.643%, 1/26/2010 | 20,000,000 | 20,000,000 |
Inter-American Development Bank, 0.401%, 2/19/2010 | 50,000,000 | 50,000,000 |
International Bank for Reconstruction & Development: |
| 0.23%, 2/1/2010 | 40,000,000 | 40,000,000 |
| 0.42%, 2/8/2010 | 25,000,000 | 25,008,169 |
Kreditanstalt fuer Wiederaufbau, 0.333%, 1/21/2010 | 42,000,000 | 42,000,000 |
National Australia Bank Ltd., 0.384%, 7/12/2010 | 21,500,000 | 21,500,000 |
Procter & Gamble International Funding SCA, 0.478%, 5/7/2010 | 21,200,000 | 21,200,000 |
Queensland Treasury Corp., 0.4%, 6/18/2010 | 42,000,000 | 42,000,000 |
Rabobank Nederland NV: |
| 144A, 0.284%, 4/7/2011 | 55,000,000 | 55,000,000 |
| 144A, 0.44%, 9/16/2010 | 12,000,000 | 12,000,000 |
| 144A, 0.831%, 5/19/2010 | 25,000,000 | 25,064,600 |
Royal Bank of Scotland PLC, 0.456%, 5/21/2010 | 40,000,000 | 40,000,000 |
Societe Generale, 0.184%, 4/19/2010 | 50,000,000 | 50,000,000 |
Westpac Banking Corp.: |
| 0.334%, 7/6/2010 | 38,000,000 | 38,000,000 |
| 144A, 0.335%, 7/2/2010 | 15,000,000 | 15,000,000 |
Total Short-Term Notes (Cost $592,772,769) | 592,772,769 |
|
Government & Agency Obligations 18.9% |
Foreign Government Obligations 3.2% |
Government of Canada: |
| 0.85%**, 11/19/2009 | 10,000,000 | 9,995,750 |
| 0.9%**, 11/30/2009 | 35,000,000 | 34,974,625 |
Kingdom of Sweden, 1.0%, 4/26/2010 | 35,000,000 | 35,012,924 |
| 79,983,299 |
Other Government Related 0.9% |
General Electric Capital Corp., FDIC Guaranteed, 0.938%, 12/9/2010 | 20,820,000 | 21,005,174 |
US Government Sponsored Agencies 8.7% |
Federal Farm Credit Bank, 0.04%*, 4/1/2010 | 25,000,000 | 25,000,000 |
Federal Home Loan Bank: |
| 0.503%**, 1/12/2010 | 18,000,000 | 17,981,640 |
| 0.79% *, 3/11/2010 | 38,000,000 | 37,998,237 |
| 3.75%, 1/8/2010 | 24,000,000 | 24,144,815 |
Federal Home Loan Mortgage Corp.: |
| 0.243%**, 12/8/2009 | 45,000,000 | 44,988,438 |
| 0.265%**, 12/21/2009 | 20,000,000 | 19,992,500 |
Federal National Mortgage Association: |
| 0.237%**, 11/17/2009 | 25,000,000 | 24,997,222 |
| 0.481%**, 12/21/2009 | 18,000,000 | 17,987,750 |
| 213,090,602 |
US Treasury Obligations 6.1% |
US Treasury Bills: |
| 0.48%**, 1/14/2010 | 35,000,000 | 34,965,467 |
| 0.49%**, 7/29/2010 | 5,000,000 | 4,981,625 |
| 0.5%**, 1/14/2010 | 25,000,000 | 24,974,306 |
| 0.53%**, 6/3/2010 | 25,000,000 | 24,921,236 |
| 0.6%**, 6/3/2010 | 23,875,000 | 23,789,846 |
| 0.705%**, 12/17/2009 | 15,000,000 | 14,986,487 |
US Treasury Notes: |
| 2.375%, 8/31/2010 | 10,000,000 | 10,165,771 |
| 2.75%, 7/31/2010 | 9,800,000 | 9,962,731 |
| 148,747,469 |
Total Government & Agency Obligations (Cost $462,826,544) | 462,826,544 |
|
Repurchase Agreements 12.2% |
Banc of America Securities LLC, 0.07%, dated 10/30/2009, to be repurchased at $222,763,962 on 11/2/2009 (a) | 222,762,663 | 222,762,663 |
Barclays Capital PLC, 0.06%, dated 10/30/2009, to be repurchased at $6,574,033 on 11/2/2009 (b) | 6,574,000 | 6,574,000 |
Morgan Stanley & Co., Inc., 0.07%, dated 10/30/2009, to be repurchased at $69,188,404 on 11/2/2009 (c) | 69,188,000 | 69,188,000 |
Total Repurchase Agreements (Cost $298,524,663) | 298,524,663 |
| % of Net Assets | Value ($) |
| |
Total Investment Portfolio (Cost $2,467,501,640)+ | 100.7 | 2,467,501,640 |
Other Assets and Liabilities, Net | (0.7) | (18,033,947) |
Net Assets | 100.0 | 2,449,467,693 |
* Floating rate notes are securities whose yields vary with a designated market index or market rate, such as the coupon-equivalent of the US Treasury bill rate. These securities are shown at their current rate as of October 31, 2009.
** Annualized yield at time of purchase; not a coupon rate.
+ The cost for federal income tax purposes was $2,467,501,640.
(a) Collateralized by:
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
34,883,042 | Federal Home Loan Mortgage Corp. | 5.0-5.5 | 6/1/2035-
11/1/2039 | 36,683,368 |
179,994,007 | Federal National Mortgage Association | 3.739-6.0 | 12/1/2021-
10/1/2039 | 190,534,548 |
Total Collateral Value | 227,217,916 |
(b) Collateralized by $5,066,200 US Treasury Bond, 6.875%, maturing on 8/15/2025 with a value of $6,705,513.
(c) Collateralized by $68,074,576 Federal Home Loan Mortgage Corp., 5.0%, maturing on 5/1/2039 with a value of $70,748,190.
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.
FDIC: Federal Deposit Insurance Corp.
Fair Value Measurements
Various inputs are used in determining the value of the Portfolio's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Portfolio's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Most securities held by a money market fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
The following is a summary of the inputs used as of October 31, 2009 in valuing the Portfolio's investments. For information on the Portfolio's policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to the Financial Statements.
Assets | Level 1 | Level 2 | Level 3 | Total |
Short-Term Investments (d) | $ — | $2,467,501,640 | $ — | $2,467,501,640 |
Total | $ — | $ 2,467,501,640 | $ — | $ 2,467,501,640 |
(d) See Investment Portfolio for additional categorizations.
The accompanying notes are an integral part of the financial statements.
Financial Statements
Money Market Portfolio
Statement of Assets and Liabilities as of October 31, 2009 (Unaudited) |
Assets | Money Market Portfolio |
Investments: Investments in securities, valued at amortized cost | $ 2,168,976,977 |
Repurchase agreements, valued at amortized cost | 298,524,663 |
Total investments, valued at amortized cost | 2,467,501,640 |
Cash | 122,134 |
Due from Advisor | 137,989 |
Receivable for Portfolio shares sold | 56,041 |
Interest receivable | 2,625,075 |
Other assets | 107,360 |
Total assets | 2,470,550,239 |
Liabilities |
Payable for Portfolio shares redeemed | 29,456 |
Payable for investments purchased | 18,501,109 |
Accrued management fee | 490,613 |
Other accrued expenses and payables | 2,061,368 |
Total liabilities | 21,082,546 |
Net assets, at value | $ 2,449,467,693 |
Net Assets Consist of |
Undistributed net investment income | 66,187 |
Accumulated net realized gain (loss) | 159,479 |
Paid-in capital | 2,449,242,027 |
Net assets, at value | $ 2,449,467,693 |
The accompanying notes are an integral part of the financial statements.
Statement of Assets and Liabilities as of October 31, 2009 (Unaudited) (continued) |
Net Asset Value | Money Market Portfolio |
Capital Assets Funds Shares Net Asset Value, offering and redemption price per share ($941,598,005 ÷ 941,149,917 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Capital Assets Funds Preferred Shares Net Asset Value, offering and redemption price per share ($61,022,622 ÷ 61,018,209 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Davidson Cash Equivalent Shares Net Asset Value, offering and redemption price per share ($23,086,111 ÷ 23,059,064 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Davidson Cash Equivalent Plus Shares Net Asset Value, offering and redemption price per share ($3,413,917 ÷ 3,407,900 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Institutional Money Market Shares Net Asset Value, offering and redemption price per share ($1,862,510 ÷ 1,859,137 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Premier Money Market Shares Net Asset Value, offering and redemption price per share ($143,779,643 ÷ 143,705,739 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Premium Reserve Money Market Shares Net Asset Value, offering and redemption price per share ($85,118,964 ÷ 85,050,668 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Service Shares Net Asset Value, offering and redemption price per share ($1,189,585,921 ÷ 1,189,100,498 outstanding shares of beneficial interest, no 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 October 31, 2009 (Unaudited) |
Investment Income | Money Market Portfolio |
Income: Interest | $ 12,898,556 |
Expenses: Management fee | 3,603,602 |
Services to shareholders | 5,154,162 |
Custodian fee | 94,177 |
Distribution and service fees | 11,215,430 |
Professional fees | 85,206 |
Trustees' fees and expenses | 69,571 |
Reports to shareholders | 207,180 |
Registration fees | 122,068 |
Temporary guarantee program participation fee | 707,640 |
Other | 72,809 |
Total expenses before expense reductions | 21,331,845 |
Expense reductions | (9,581,789) |
Total expenses after expense reductions | 11,750,056 |
Net investment income | 1,148,500 |
Net realized gain (loss) from investments | 159,474 |
Net increase (decrease) in net assets resulting from operations | $ 1,307,974 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets | Money Market Portfolio |
Increase (Decrease) in Net Assets | Six Months Ended October 31, 2009 (Unaudited) | Year Ended April 30, 2009 |
Operations: Net investment income | $ 1,148,500 | $ 61,672,883 |
Net realized gain (loss) | 159,474 | 596,527 |
Net increase in net assets resulting from operations | 1,307,974 | 62,269,410 |
Distributions to shareholders from: Net investment income: Capital Assets Funds Shares | (158,385) | (12,130,034) |
Capital Assets Funds Preferred Shares | (7,887) | (1,195,269) |
Davidson Cash Equivalent Shares | (1,136) | (576,062) |
Davidson Cash Equivalent Plus Shares | (165) | (117,205) |
Institutional Money Market Shares | (739,731) | (2,880,267) |
Institutional Select Money Market Shares | (18) | (207) |
Premier Money Market Shares | (74,361) | (24,528,332) |
Premium Reserve Money Market Shares | (115,797) | (7,114,750) |
Service Shares | (51,022) | (13,649,289) |
Net realized gains: Capital Assets Funds Shares | (119,557) | — |
Capital Assets Funds Preferred Shares | (7,647) | — |
Davidson Cash Equivalent Shares | (3,189) | — |
Davidson Cash Equivalent Plus Shares | (459) | — |
Institutional Money Market Shares | (48,875) | — |
Institutional Select Money Market Shares | (1) | — |
Premier Money Market Shares | (222,469) | — |
Premium Reserve Money Market Shares | (39,281) | — |
Service Shares | (155,044) | — |
Total distributions | (1,745,024) | (62,191,415) |
Portfolio share transactions: Proceeds from shares sold | 2,485,022,577 | 7,321,787,985 |
Reinvestment of distributions | 1,661,692 | 61,430,384 |
Cost of shares redeemed | (5,123,036,577) | (7,184,032,670) |
Net increase (decrease) in net assets from Portfolio share transactions | (2,636,352,308) | 199,185,699 |
Increase (decrease) in net assets | (2,636,789,358) | 199,263,694 |
Net assets at beginning of period | 5,086,257,051 | 4,886,993,357 |
Net assets at end of period (including undistributed net investment income of $66,187 and $66,189, respectively) | $ 2,449,467,693 | $ 5,086,257,051 |
The accompanying notes are an integral part of the financial statements.
Financial Highlights
Money Market Portfolio
Premier Money Market Shares |
Years Ended April 30, | 2009a | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per Share Data |
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income (loss) from investment operations: Net investment income | .000*** | .013 | .039 | .043 | .029 | .009 |
Net realized and unrealized gain (loss) | .000*** | .000*** | .000*** | .000*** | .000*** | .000*** |
Total from investment operations | .000*** | .013 | .039 | .043 | .029 | .009 |
Less distributions from: Net investment income | (.000)*** | (.013) | (.039) | (.043) | (.029) | (.009) |
Net realized gains | (.000)*** | — | — | — | — | — |
Total distributions | (.000)*** | (.013) | (.039) | (.043) | (.029) | (.009) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%) | .02b** | 1.27b | 3.98b | 4.40 | 2.99 | .94 |
Ratios to Average Net Assets and Supplemental Data |
Net assets, end of period ($ millions) | 144 | 2,021 | 1,902 | 1,343 | 4,095 | 3,381 |
Ratio of expenses before expense reductions (%) | .95* | .96 | .96 | .99 | .98 | .98 |
Ratio of expenses after expense reductions (%) | .53* | .95 | .95 | .99 | .98 | .98 |
Ratio of net investment income (%) | .02* | 1.22 | 3.86 | 4.29 | 3.01 | .95 |
a For the six months ended October 31, 2009 (Unaudited). b Total return would have been lower had certain expenses not been reduced. * Annualized ** Not annualized *** Amount is less than $.0005. |
Portfolio Summary
Government & Agency Securities Portfolio
Asset Allocation (As a % of Investment Portfolio) | 10/31/09 | 4/30/09 |
| | |
Government & Agency Obligations | 68% | 46% |
Repurchase Agreements | 32% | 54% |
| 100% | 100% |
Weighted Average Maturity | 10/31/09 | 4/30/09 |
| | |
Cash Account Trust — Government & Agency Securities Portfolio | 59 days | 56 days |
iMoneyNet Government & Agencies Retail Money Fund Average* | 47 days | 44 days |
* The Portfolio is compared to its respective iMoney Net Category: Government & Agencies Retail Money Fund Average consists of all non-institutional government money market funds. Category includes the most broadly based of the government retail funds. These funds can invest in US Treasuries, US Other, Repos, whether or not they are backed by US Treasuries and government-backed Floating Rate Notes.
Asset allocation and weighted average maturity are subject to change.
For more complete details about the Portfolio's holdings, see pages 18-23. A quarterly Fact Sheet is available upon request. A complete list of the Portfolio's holdings is posted twice each month on www.dws-investments.com. Portfolio holdings as of the 15th day of each month are posted to the Web site on or after month-end and portfolio holdings as of each month-end are posted to the Web site on or after the 14th day of the following month. More frequent posting of portfolio holdings information may be made from time to time on www.dws-investments.com.
Following the Portfolio's 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 October 31, 2009 (Unaudited)
Government & Agency Securities Portfolio
| Principal Amount ($) | Value ($) |
| | |
Government & Agency Obligations 68.8% |
US Government Sponsored Agencies 59.2% |
Federal Farm Credit Bank: |
| 0.04%**, 4/1/2010 | 140,000,000 | 140,000,000 |
| 0.073%**, 12/17/2010 | 25,000,000 | 24,988,199 |
| 0.095%**, 11/20/2009 | 5,500,000 | 5,499,933 |
| 0.11%**, 11/4/2010 (a) | 92,000,000 | 92,000,000 |
| 0.174%**, 12/23/2010 | 50,000,000 | 49,996,500 |
| 0.214%**, 2/14/2011 | 140,000,000 | 139,927,339 |
| 0.216%**, 2/4/2011 | 75,000,000 | 74,952,156 |
| 0.244%**, 8/25/2010 | 50,000,000 | 50,012,356 |
| 0.244%**, 2/28/2011 | 50,000,000 | 50,006,952 |
| 0.244%**, 3/28/2011 | 40,000,000 | 39,977,489 |
| 0.244%**, 7/6/2010 | 60,000,000 | 60,012,440 |
| 0.246%**, 3/4/2010 | 60,000,000 | 60,008,728 |
| 0.265%**, 1/20/2011 | 94,655,000 | 94,654,847 |
| 0.384%**, 4/27/2010 | 10,000,000 | 10,011,834 |
| 0.398%*, 5/3/2010 | 50,000,000 | 49,898,333 |
| 0.485%**, 1/20/2011 | 200,000,000 | 200,518,080 |
| 0.494%**, 12/23/2010 | 70,000,000 | 70,178,271 |
| 0.58%**, 4/9/2010 | 115,000,000 | 114,996,493 |
| 1.05%, 3/18/2010 | 95,435,000 | 95,435,000 |
| 2.75%, 5/4/2010 | 195,750,000 | 197,674,322 |
Federal Home Loan Bank: |
| LIBOR minus 0.29%, 0.0%, 4/16/2010 | 140,000,000 | 140,015,768 |
| 0.03%**, 4/1/2010 | 82,500,000 | 82,482,226 |
| 0.184%**, 7/13/2010 | 25,000,000 | 25,036,133 |
| 0.23%**, 7/9/2010 | 250,000,000 | 250,000,000 |
| 0.26%**, 11/17/2010 | 379,225,000 | 379,177,542 |
| 0.275%**, 11/19/2010 | 350,000,000 | 349,926,615 |
| 0.31%**, 11/15/2010 | 170,000,000 | 169,973,258 |
| 0.396%**, 2/19/2010 | 91,000,000 | 91,079,286 |
| Step-up Coupon, 0.4% to 11/20/2009, 1.5% to 5/20/2010 | 50,000,000 | 50,000,000 |
| 0.5%, 11/12/2010 | 45,000,000 | 45,010,606 |
| 0.503*, 1/12/2010 | 175,000,000 | 174,821,500 |
| 0.51%, 10/28/2010 | 50,000,000 | 50,000,000 |
| 0.55%, 6/3/2010 | 88,900,000 | 88,900,000 |
| 0.55%, 6/4/2010 | 50,000,000 | 50,000,000 |
| 0.554%**, 11/18/2009 | 92,000,000 | 92,021,884 |
| 0.713%*, 11/20/2009 | 21,000,000 | 20,991,688 |
| 0.777%*, 12/4/2009 | 54,000,000 | 53,960,400 |
| 0.778%*, 12/7/2009 | 87,000,000 | 86,930,400 |
| 0.781%*, 12/11/2009 | 35,000,000 | 34,968,889 |
| 0.79%**, 3/11/2010 | 283,000,000 | 282,987,640 |
| 0.8%, 4/23/2010 | 92,000,000 | 92,000,000 |
| 0.928%*, 1/19/2010 | 20,000,000 | 19,958,744 |
| 0.92%, 4/9/2010 | 101,500,000 | 101,591,945 |
| 1.03%, 2/18/2010 | 14,800,000 | 14,804,767 |
| 1.091%*, 12/8/2009 | 92,500,000 | 92,393,522 |
| 1.165%*, 12/4/2009 | 50,000,000 | 49,945,000 |
| 3.125%, 12/11/2009 | 15,000,000 | 15,044,824 |
| 3.75%, 1/8/2010 | 58,000,000 | 58,349,970 |
| 3.875%, 1/15/2010 | 26,000,000 | 26,167,479 |
| 4.25%, 6/11/2010 | 5,370,000 | 5,500,222 |
Federal Home Loan Mortgage Corp.: |
| 0.084%**, 8/10/2010 | 200,000,000 | 200,000,000 |
| 0.108%*, 11/2/2009 | 25,000,000 | 24,999,861 |
| 0.118%*, 12/28/2009 | 37,832,000 | 37,824,812 |
| 0.147%*, 12/23/2009 | 21,100,000 | 21,095,428 |
| 0.149%*, 3/22/2010 | 100,000,000 | 99,941,250 |
| 0.236%*, 11/16/2009 | 120,000,000 | 119,987,500 |
| 0.243%*, 12/8/2009 | 124,460,000 | 124,428,021 |
| 0.248%*, 3/15/2010 | 100,000,000 | 99,906,944 |
| 0.249%*, 5/3/2010 | 100,000,000 | 99,872,917 |
| 0.263%*, 12/7/2009 | 16,250,000 | 16,245,613 |
| 0.284%*, 12/21/2009 | 200,000,000 | 199,919,444 |
| 0.294%*, 12/14/2009 | 30,000,000 | 29,989,250 |
| 0.339%**, 2/4/2010 | 50,000,000 | 50,008,994 |
| 0.344%*, 12/29/2009 | 50,000,000 | 49,971,806 |
| 0.368%*, 3/31/2010 | 75,000,000 | 74,884,375 |
| 0.416%*, 2/8/2010 | 75,000,000 | 74,913,375 |
| 0.426%*, 2/8/2010 | 65,000,000 | 64,923,137 |
| 0.428%*, 5/17/2010 | 50,000,000 | 49,882,347 |
| 0.66%**, 1/22/2010 | 75,000,000 | 75,072,873 |
| 2.375%, 5/28/2010 | 18,750,000 | 18,980,689 |
| 2.68%, 11/16/2009 | 30,000,000 | 30,026,790 |
| 2.875%, 6/28/2010 | 117,280,000 | 119,271,669 |
| 3.75%, 7/30/2010 | 25,050,000 | 25,633,741 |
| 4.125%, 11/18/2009 | 50,000,000 | 50,078,530 |
| 4.125%, 11/30/2009 | 100,000,000 | 100,302,883 |
| 4.125%, 7/12/2010 | 88,919,000 | 91,150,420 |
| 4.125%, 10/18/2010 | 21,725,000 | 22,483,027 |
| 4.75%, 11/3/2009 | 100,000,000 | 100,024,387 |
| 4.875%, 2/9/2010 | 50,000,000 | 50,610,240 |
Federal National Mortgage Association: |
| 0.087%*, 12/3/2009 | 75,000,000 | 74,994,000 |
| 0.147%*, 12/17/2009 | 37,350,000 | 37,342,841 |
| 0.149%*, 3/24/2010 | 25,000,000 | 24,985,104 |
| 0.162%*, 12/17/2009 | 350,000,000 | 349,926,208 |
| 0.162%*, 12/22/2009 | 50,000,000 | 49,988,313 |
| 0.174%**, 7/13/2010 | 205,000,000 | 205,232,959 |
| 0.236%*, 11/16/2009 | 175,000,000 | 174,981,771 |
| 0.237%*, 11/17/2009 | 123,000,000 | 122,986,333 |
| 0.296%*, 1/4/2010 | 50,000,000 | 49,973,333 |
| 0.349%*, 9/13/2010 | 50,000,000 | 49,846,389 |
| 0.404%**, 2/12/2010 | 24,000,000 | 24,020,291 |
| 0.414%*, 11/2/2009 | 129,700,000 | 129,697,046 |
| 0.422%**, 8/5/2010 | 164,000,000 | 164,242,416 |
| 0.448%*, 6/1/2010 | 45,000,000 | 44,880,750 |
| 0.481%*, 12/21/2009 | 175,000,000 | 174,880,903 |
| 0.52%*, 12/21/2009 | 150,000,000 | 149,889,583 |
| 0.528%*, 7/26/2010 | 25,000,000 | 24,901,729 |
| 0.528%*, 8/2/2010 | 25,000,000 | 24,899,153 |
| 0.548%*, 8/5/2010 | 50,000,000 | 49,788,403 |
| 3.0%, 7/12/2010 | 12,750,000 | 12,964,599 |
| 3.875%, 12/10/2009 | 15,650,000 | 15,702,691 |
| 4.75%, 3/12/2010 | 107,000,000 | 108,703,927 |
| 7.125%, 6/15/2010 | 18,548,000 | 19,336,101 |
| 7.25%, 1/15/2010 | 70,000,000 | 70,956,308 |
| 8,892,341,054 |
US Treasury Obligations 9.6% |
US Treasury Bills: |
| 0.235%*, 7/15/2010 | 52,000,000 | 51,913,102 |
| 0.345%*, 12/24/2009 | 100,000,000 | 99,949,208 |
| 0.48%*, 1/14/2010 | 110,000,000 | 109,891,467 |
| 0.49%*, 7/29/2010 | 15,000,000 | 14,944,875 |
| 0.5%*, 1/14/2010 | 100,000,000 | 99,897,222 |
| 0.5%*, 4/1/2010 | 60,000,000 | 59,874,167 |
| 0.5%*, 7/29/2010 | 10,000,000 | 9,962,500 |
| 0.53%*, 6/3/2010 | 31,350,000 | 31,251,230 |
| 0.6%*, 6/3/2010 | 75,000,000 | 74,732,500 |
| 0.63%*, 11/19/2009 | 74,050,000 | 74,026,119 |
| 0.633%*, 11/19/2009 | 95,500,000 | 95,469,918 |
| 0.7%*, 3/11/2010 | 95,000,000 | 94,759,861 |
| 0.705%*, 12/17/2009 | 25,000,000 | 24,977,479 |
US Treasury Notes: |
| 1.5%, 10/31/2010 | 75,000,000 | 75,811,456 |
| 1.75%, 3/31/2010 | 50,000,000 | 50,311,940 |
| 2.125%, 1/31/2010 | 150,000,000 | 150,652,523 |
| 2.375%, 8/31/2010 | 50,000,000 | 50,828,857 |
| 2.75%, 7/31/2010 | 131,000,000 | 133,303,938 |
| 2.875%, 6/30/2010 | 31,850,000 | 32,357,487 |
| 4.75%, 2/15/2010 | 100,000,000 | 101,264,920 |
| 1,436,180,769 |
Total Government & Agency Obligations (Cost $10,328,521,823) | 10,328,521,823 |
|
Repurchase Agreements 31.7% |
Banc of America Securities LLC, 0.07%, dated 10/30/2009, to be repurchased at $300,893,335 on 11/2/2009 (b) | 300,891,580 | 300,891,580 |
Barclays Capital PLC, 0.10%, dated 10/9/2009, to be repurchased at $300,025,833 on 11/9/2009 (c) | 300,000,000 | 300,000,000 |
Barclays Capital PLC, 0.12%, dated 10/26/2009, to be repurchased at $300,039,000 on 12/4/2009 (d) | 300,000,000 | 300,000,000 |
BNP Paribas, 0.08%, dated 10/30/2009, to be repurchased at $866,005,773 on 11/2/2009 (e) | 866,000,000 | 866,000,000 |
JPMorgan Securities, Inc., 0.07%, dated 10/30/2009, to be repurchased at $935,930,460 on 11/2/2009 (f) | 935,925,000 | 935,925,000 |
Morgan Stanley & Co., Inc., 0.07%, dated 10/30/2009, to be repurchased at $1,160,006,767 on 11/2/2009 (g) | 1,160,000,000 | 1,160,000,000 |
The Goldman Sachs & Co., 0.07%, dated 10/30/2009, to be repurchased at $473,306,846 on 11/2/2009 (h) | 473,304,085 | 473,304,085 |
The Goldman Sachs & Co., 0.12%, dated 10/26/2009, to be repurchased at $425,049,583 on 11/30/2009 (i) | 425,000,000 | 425,000,000 |
Total Repurchase Agreements (Cost $4,761,120,665) | 4,761,120,665 |
| % of Net Assets | Value ($) |
| |
Total Investment Portfolio (Cost $15,089,642,488)+ | 100.5 | 15,089,642,488 |
Other Assets and Liabilities, Net | (0.5) | (74,613,613) |
Net Assets | 100.0 | 15,015,028,875 |
* Annualized yield at time of purchase; not a coupon rate.
** Floating rate notes are securities whose yields vary with a designated market index or market rate, such as the coupon-equivalent of the US Treasury bill rate. These securities are shown at their current rate as of October 31, 2009.
+ The cost for federal income tax purposes was $15,089,642,488.
(a) When-issued security.
(b) Collateralized by:
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
101,672,365 | Federal Home Loan Mortgage Corp. | 4.095-6.104 | 12/1/2034-11/1/2039 | 106,806,182 |
191,448,000 | Federal National Mortgage Association | 2.549-6.5 | 3/1/2024-
6/1/2046 | 200,103,230 |
Total Collateral Value | 306,909,412 |
(c) Collateralized by:
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
234,967,700 | US Treasury Bill | — | 6/17/2010 | 234,650,494 |
68,708,500 | US Treasury Note | 4.125 | 8/15/2010 | 71,349,587 |
Total Collateral Value | 306,000,081 |
(d) Collateralized by:
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
27,305,000 | Federal Home Loan Bank | 1.25 | 8/6/2012 | 27,538,367 |
454,461,000 | Residual Funding — Principal Only | Zero Coupon | 10/15/2020 | 278,461,888 |
Total Collateral Value | 306,000,255 |
(e) Collateralized by:
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
188,870,622 | Federal Home Loan Mortgage Corp. | 4.5-7.0 | 6/1/2035-
10/1/2047 | 199,689,951 |
645,408,492 | Federal National Mortgage Association | 4.5-6.5 | 12/1/2020-
11/1/2048 | 683,630,050 |
Total Collateral Value | 883,320,001 |
(f) Collateralized by $910,638,054 Government National Mortgage Association, with various coupon rates from 4.0-12.0%, with various maturity dates of 4/15/2013-4/15/2050 with a value of $954,648,047.
(g) Collateralized by:
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
405,002,917 | Federal Home Loan Mortgage Corp. | 5.0-6.513 | 7/1/2036-
5/1/2039 | 426,479,590 |
733,962,985 | Federal National Mortgage Association | 3.809-6.0 | 6/1/2035-
11/1/2039 | 756,720,423 |
Total Collateral Value | 1,183,200,013 |
(h) Collateralized by:
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
447,830,914 | Government National Mortgage Association | 0.996-6.0 | 10/16/2026-
8/16/2044 | 444,307,872 |
190,839,763 | Government National Mortgage Association — Interest Only | 4.5-5.0 | 3/20/2035-
9/20/2036 | 38,462,295 |
Total Collateral Value | 482,770,167 |
(i) Collateralized by:
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
61,779,862 | Federal Home Loan Mortgage Corp. | 0.595-37.53 | 4/15/2021-
10/15/2049 | 65,225,430 |
1,503,888,412 | Federal Home Loan Mortgage Corp. — Interest Only | 4.755 — 16.905 | 9/15/2018-
10/15/2049 | 156,301,153 |
317,358,330 | Federal National Mortgage Association | Zero Coupon — 37.838 | 1/25/2032-
11/25/2049 | 54,577,267 |
1,652,331,314 | Federal National Mortgage Association — Interest Only | 0.222 — 8.356 | 8/25/2018-
11/25/2049 | 157,396,150 |
Total Collateral Value | 433,500,000 |
Interest Only: Interest Only (IO) bonds represent the "interest only" portion of payments on a pool of underlying mortgages or mortgage-backed securities. IO securities are subject to prepayment risk of the pool of underlying mortgages.
LIBOR: London InterBank Offered Rate
Principal Only: Principal Only (PO) bonds represent the "principal only" portion of payments on a pool of underlying mortgages or mortgage-backed securities.
Fair Value Measurements
Various inputs are used in determining the value of the Portfolio's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Portfolio's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Most securities held by a money market fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
The following is a summary of the inputs used as of October 31, 2009 in valuing the Portfolio's investments. For information on the Portfolio's policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to the Financial Statements.
Assets | Level 1 | Level 2 | Level 3 | Total |
Government & Agency Obligations (j) | $ — | $ 10,328,521,823 | $ — | $ 10,328,521,823 |
Repurchase Agreements | — | 4,761,120,665 | — | 4,761,120,665 |
Total | $ — | $ 15,089,642,488 | $ — | $ 15,089,642,488 |
(j) See Investment Portfolio for additional detailed categorizations.
The accompanying notes are an integral part of the financial statements.
Financial Statements
Government & Agency Securities Portfolio
Statement of Assets and Liabilities as of October 31, 2009 (Unaudited) |
Assets | Government & Agency Securities Portfolio |
Investments: Investments in securities, valued at amortized cost | $ 10,328,521,823 |
Repurchase agreements, valued at amortized cost | 4,761,120,665 |
Total investments, valued at amortized cost | 15,089,642,488 |
Cash | 654 |
Receivable for Portfolio shares sold | 190,945 |
Interest receivable | 21,816,813 |
Other assets | 79,245 |
Total assets | 15,111,730,145 |
Liabilities |
Payable for when-issued securities purchased | 92,000,000 |
Payable for Portfolio shares redeemed | 591,355 |
Distributions payable | 695,605 |
Accrued management fee | 1,052,651 |
Other accrued expenses and payables | 2,361,659 |
Total liabilities | 96,701,270 |
Net assets, at value | $ 15,015,028,875 |
Net Assets Consist of |
Undistributed net investment income | 109,505 |
Accumulated net realized gain (loss) | 543,839 |
Paid-in capital | 15,014,375,531 |
Net assets, at value | $ 15,015,028,875 |
The accompanying notes are an integral part of the financial statements.
Statement of Assets and Liabilities as of October 31, 2009 (Unaudited) (continued) |
Net Asset Value | Government & Agency Securities Portfolio |
Capital Assets Funds Shares Net Asset Value, offering and redemption price per share ($304,617,663 ÷ 304,585,510 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Davidson Cash Equivalent Shares Net Asset Value, offering and redemption price per share ($23,987,640 ÷ 23,982,062 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Davidson Cash Equivalent Plus Shares Net Asset Value, offering and redemption price per share ($39,771,888 ÷ 39,768,907 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
DWS Government & Agency Money Fund Net Asset Value, offering and redemption price per share ($283,951,127 ÷ 283,899,368 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
DWS Government Cash Institutional Shares Net Asset Value, offering and redemption price per share ($13,897,057,669 ÷ 13,896,466,276 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Government Cash Managed Shares Net Asset Value, offering and redemption price per share ($317,813,218 ÷ 317,855,534 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Premier Money Market Shares Net Asset Value, offering and redemption price per share ($25,940,438 ÷ 25,936,001 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Service Shares Net Asset Value, offering and redemption price per share ($121,889,232 ÷ 121,864,125 outstanding shares of beneficial interest, no 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 October 31, 2009 (Unaudited) |
Investment Income | Government & Agency Securities Portfolio |
Income: Interest | $ 35,556,281 |
Expenses: Management fee | 5,165,917 |
Administration fee | 9,414,795 |
Services to shareholders | 4,996,810 |
Custodian fee | 237,129 |
Distribution and service fees | 10,204,122 |
Professional fees | 171,865 |
Trustees' fees and expenses | 251,958 |
Reports to shareholders | 271,578 |
Registration fees | 115,567 |
Temporary guarantee program participation fee | 1,862,809 |
Other | 216,510 |
Total expenses before expense reductions | 32,909,060 |
Expense reductions | (11,204,455) |
Total expenses after expense reductions | 21,704,605 |
Net investment income | 13,851,676 |
Net realized gain (loss) from investments | 544,094 |
Net increase (decrease) in net assets resulting from operations | $ 14,395,770 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets | Government & Agency Securities Portfolio |
| Six Months Ended October 31, 2009 (Unaudited) | Year Ended April 30, 2009 |
Operations: Net investment income | $ 13,851,676 | $ 104,309,706 |
Net realized gain (loss) | 544,094 | 1,341,684 |
Net increase in net assets resulting from operations | 14,395,770 | 105,651,390 |
Distributions to shareholders from: Net investment income: Capital Assets Funds Shares | (15,723) | (1,539,073) |
Davidson Cash Equivalent Shares | (1,380) | (260,593) |
Davidson Cash Equivalent Plus Shares | (1,194) | (256,560) |
DWS Government & Agency Money Fund | (152,357) | (5,640,482) |
DWS Government Cash Institutional Shares | (13,467,259) | (64,506,953) |
Government Cash Managed Shares | (30,745) | (4,499,492) |
Premier Money Market Shares | (175,753) | (26,628,276) |
Service Shares | (7,006) | (1,083,854) |
Net realized gains: Capital Assets Funds Shares | (21,655) | — |
Davidson Cash Equivalent Shares | (1,826) | — |
Davidson Cash Equivalent Plus Shares | (1,455) | — |
DWS Government & Agency Money Fund | (21,065) | — |
DWS Government Cash Institutional Shares | (1,020,619) | — |
Government Cash Managed Shares | (24,047) | — |
Premier Money Market Shares | (241,922) | — |
Service Shares | (9,350) | — |
Total distributions | (15,193,356) | (104,415,283) |
Portfolio share transactions: Proceeds from shares sold | 41,597,822,304 | 58,073,815,617 |
Reinvestment of distributions | 7,062,698 | 73,218,265 |
Cost of shares redeemed | (46,622,953,404) | (43,392,972,552) |
Net increase (decrease) in net assets from Portfolio share transactions | (5,018,068,402) | 14,754,061,330 |
Increase (decrease) in net assets | (5,018,865,988) | 14,755,297,437 |
Net assets at beginning of period | 20,033,894,863 | 5,278,597,426 |
Net assets at end of period (including undistributed net investment income of $109,505 and $109,246, respectively) | $ 15,015,028,875 | $ 20,033,894,863 |
The accompanying notes are an integral part of the financial statements.
Financial Highlights
Government & Agency Securities Portfolio
Premier Money Market Shares |
Years Ended April 30, | 2009a | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per Share Data |
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income (loss) from investment operations: Net investment income | .000*** | .008 | .037 | .043 | .029 | .009 |
Net realized and unrealized gain (loss) | .000*** | .000*** | .000*** | .000*** | — | (.000)**** |
Total from investment operations | .000*** | .008 | .037 | .043 | .029 | .009 |
Less distributions from: Net investment income | (.000)*** | (.008) | (.037) | (.043) | (.029) | (.009) |
Net realized gains | (.000)*** | — | — | — | — | — |
Total distributions | (.000)*** | (.008) | (.037) | (.043) | (.029) | (.009) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%) | .01b** | .80b | 3.72b | 4.35b | 2.94 | .87 |
Ratios to Average Net Assets and Supplemental Data |
Net assets, end of period ($ millions) | 26 | 4,101 | 2,935 | 1,700 | 2,046 | 1,800 |
Ratio of expenses before expense reductions (%) | .90* | .94 | .97 | 1.02 | 1.01 | 1.03 |
Ratio of expenses after expense reductions (%) | .37* | .86 | .95 | 1.02 | 1.01 | 1.03 |
Ratio of net investment income (%) | .01* | .70c | 3.50 | 4.25 | 2.93 | .87 |
a For the six months ended October 31, 2009 (Unaudited). b Total return would have been lower had certain expenses not been reduced. c Due to the timing of the subscriptions and redemptions, the amount shown does not correspond to the total return during the period. * Annualized ** Not annualized *** Amount is less than $.0005. **** Amount is more than ($.0005). |
Portfolio Summary
Tax-Exempt Portfolio
Asset Allocation (As a % of Investment Portfolio) | 10/31/09 | 4/30/09 |
| | |
Municipal Investments Municipal Variable Rate Demand Notes | 71% | 79% |
Municipal Bonds and Notes | 29% | 21% |
| 100% | 100% |
Weighted Average Maturity | 10/31/09 | 4/30/09 |
| | |
Cash Account Trust — Tax-Exempt Portfolio | 41 days | 35 days |
National Tax-Free Retail Money Fund Average* | 32 days | 27 days |
* The Portfolio is compared to its respective iMoneyNet Category: National Tax-Free Retail Money Fund Average — 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 and less; Put Bonds — over 6 months; AMT Paper and Other Tax-Free Holdings.
Asset allocation and weighted average maturity are subject to change.
For more complete details about the Portfolio's holdings, see pages 30-47. A quarterly Fact Sheet is available upon request. A complete list of the Portfolio's portfolio holdings is posted twice each month on www.dws-investments.com. Portfolio holdings as of the 15th day of each month are posted to the Web site on or after month-end and portfolio holdings as of each month-end are posted to the Web site on or after the 14th day of the following month. More frequent posting of portfolio holdings information may be made from time to time on www.dws-investments.com.
Following the Portfolio's 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 October 31, 2009 (Unaudited)
Tax-Exempt Portfolio
| Principal Amount ($) | Value ($) |
| |
Municipal Investments 100.4% |
Alabama 0.4% |
Pell City, AL, Special Care Facilities Financing Authority Revenue, Noland Health Services, Series A, 0.23%*, 12/1/2039, US Bank NA (a) | 4,000,000 | 4,000,000 |
Tuscaloosa County, AL, Industrial Development Gulf Opportunity Zone, Hunt Refining Project, Series C, 0.36%*, 12/1/2027, JPMorgan Chase Bank (a) | 10,000,000 | 10,000,000 |
| 14,000,000 |
Arizona 1.4% |
Apache County, AZ, Industrial Development Authority Revenue, Tucson Electric Power Co., Series 83C, 0.25%*, 12/15/2018, Bank of New York Mellon Corp. (a) | 3,080,000 | 3,080,000 |
Arizona, Salt River Pima-Maricopa Indian Community, 0.26%*, 10/1/2026, Bank of America NA (a) | 4,100,000 | 4,100,000 |
Phoenix, AZ, Civic Improvement Corp., Airport Revenue, 0.33%, 1/5/2010 | 47,000,000 | 47,000,000 |
| 54,180,000 |
California 9.8% |
Alameda County, CA, Industrial Development Authority Revenue, BEMA Electronic Manufacturing, Inc. Project, Series A, AMT, 0.5%*, 4/1/2034, Comerica Bank (a) | 3,200,000 | 3,200,000 |
Alameda County, CA, Industrial Development Authority Revenue, Caravan Trading Co., AMT, 0.5%*, 4/1/2014, Comerica Bank (a) | 2,350,000 | 2,350,000 |
Alameda County, CA, Industrial Development Authority Revenue, Essai, Inc. Project, AMT, 0.45%*, 8/1/2035, Comerica Bank (a) | 4,000,000 | 4,000,000 |
Alameda County, CA, Industrial Development Authority Revenue, Malberg Engineering, Inc., AMT, 0.5%*, 8/1/2031, Comerica Bank (a) | 2,170,000 | 2,170,000 |
Alameda County, CA, Industrial Development Authority Revenue, White Brothers Project, AMT, 0.5%*, 3/1/2032, Comerica Bank (a) | 2,480,000 | 2,480,000 |
California, Bay Area Toll Authority, Toll Bridge Revenue, Series 2985, 144A, 0.21%*, 4/1/2039 | 47,550,000 | 47,550,000 |
California, Clipper Tax-Exempt Certificate Trust, Series 2007-38, 144A, 0.29%*, 5/15/2030 | 24,600,000 | 24,600,000 |
California, Housing Finance Agency Revenue, Home Mortgage: | |
| Series D, AMT, 0.4%*, 2/1/2043 | 14,000,000 | 14,000,000 |
| Series M, 144A, AMT, 0.45%*, 8/1/2024 | 18,765,000 | 18,765,000 |
| Series M, AMT, 0.45%*, 8/1/2033 | 10,480,000 | 10,480,000 |
| Series M, AMT, 0.5%*, 8/1/2034 | 31,760,000 | 31,760,000 |
| Series A, AMT, 0.5%*, 8/1/2035 | 19,415,000 | 19,415,000 |
| Series K, AMT, 0.5%*, 8/1/2037 | 18,100,000 | 18,100,000 |
| Series K, AMT, 0.5%*, 2/1/2038 | 18,000,000 | 18,000,000 |
| Series F, AMT, 0.65%*, 2/1/2033 (b) | 9,200,000 | 9,200,000 |
California, Housing Finance Agency Revenue, Multi-Family Housing: | |
| Series C, AMT, 0.4%*, 2/1/2033 | 30,400,000 | 30,400,000 |
| Series C, AMT, 0.53%*, 2/1/2037 | 1,955,000 | 1,955,000 |
| Series C, AMT, 0.53%*, 8/1/2037 | 16,190,000 | 16,190,000 |
California, Municipal Finance Authority, Multi-Family Housing Revenue, Series 2410, 144A, AMT, 0.41%*, 1/1/2020, JPMorgan Chase Bank (a) | 4,915,000 | 4,915,000 |
California, State Department of Water Resources, Power Supply Revenue, Series C-7, 0.3%*, 5/1/2022 (b) | 7,950,000 | 7,950,000 |
California, State Kindergarten, Series A6, 0.19%*, 5/1/2034, Citibank NA & California State Teacher's Retirement System (a) | 7,000,000 | 7,000,000 |
California, Statewide Communities Development, Series 2114, 144A, AMT, 0.31%*, 9/1/2046 | 3,765,000 | 3,765,000 |
California, Statewide Communities Development Authority, Certificates of Participation, 0.32%*, 2/1/2028, Union Bank of CA (a) | 1,580,000 | 1,580,000 |
California, Statewide Communities Development Authority, Multi-Family Housing Revenue: | |
| Series 2680, 144A, 0.36%*, 5/15/2018, JPMorgan Chase Bank (a) | 20,000,000 | 20,000,000 |
| Series 2681, 144A, AMT, 0.51%*, 5/15/2018, JPMorgan Chase Bank (a) | 16,190,000 | 16,190,000 |
Lemoore, CA, Certificates of Participation, Municipal Golf Course Refining Project, 144A, 0.34%*, 11/1/2020, Union Bank of CA (a) | 2,000,000 | 2,000,000 |
San Diego County, CA, Water Authority, Series 3, 0.4%, 12/3/2009 | 21,035,000 | 21,035,000 |
San Diego, CA, Certificates of Participation, 0.41%*, 12/1/2028, Comerica Bank (a) | 1,825,000 | 1,825,000 |
San Francisco, CA, City & County Multi-Family Housing Revenue, Series 34G, 144A, 0.23%*, 12/1/2018 | 4,000,000 | 4,000,000 |
Tustin, CA, Unified School District, Series 2007-336, 144A, 0.86%*, 9/1/2011, Bank of America NA (a) | 19,860,000 | 19,860,000 |
| 384,735,000 |
Colorado 2.8% |
Colorado, Centerra Metropolitan District 1 Revenue, Refunding and Improvement, 0.77%*, 12/1/2029, Compass Bank (a) | 14,945,000 | 14,945,000 |
Colorado, Educational & Cultural Facilities Authority Revenue, Bear Creek School Project, 0.22%*, 10/1/2032, US Bank NA (a) | 6,200,000 | 6,200,000 |
Colorado, Educational & Cultural Facilities Authority Revenue, Fremont Christian School Project, 0.22%*, 6/1/2038, US Bank NA (a) | 16,610,000 | 16,610,000 |
Colorado, Educational & Cultural Facilities Authority Revenue, Linfield Christian School Project, 0.22%*, 5/1/2030, Evangelical Christian Credit Union (a) | 8,100,000 | 8,100,000 |
Colorado, Educational & Cultural Facilities Authority Revenue, Trinity School Project, 0.26%*, 9/1/2026, Branch Banking & Trust (a) | 1,600,000 | 1,600,000 |
Colorado, Goldsmith Metropolitan District, 0.25%*, 12/1/2034, Compass Bank (a) | 5,270,000 | 5,270,000 |
Colorado, Health Facilities Authority Revenue, Bethesda Adult Communities, Series A, 0.22%*, 8/15/2034, LaSalle Bank NA (a) | 18,740,000 | 18,740,000 |
Colorado, Health Facilities Authority Revenue, Fraiser Meadows Community Project, 0.22%*, 6/1/2038, JPMorgan Chase Bank (a) | 14,000,000 | 14,000,000 |
Colorado, Lowry Economic Redevelopment Authority Revenue, Series A, 0.77%*, 12/1/2020, Compass Bank (a) | 6,965,000 | 6,965,000 |
Colorado, RBC Municipal Products, Inc. Trust, Series C-11, 144A, 0.28%*, 12/1/2031, Royal Bank of Canada (a) | 17,580,000 | 17,580,000 |
| 110,010,000 |
Connecticut 0.1% |
Connecticut, State Health & Educational Facilities, 0.45%, 1/7/2010 | 6,000,000 | 6,000,000 |
Delaware 0.6% |
Delaware, BB&T Municipal Trust, Series 5000, 144A, 0.42%*, 10/1/2028, Rabobank International (a) | 15,992,208 | 15,992,208 |
Delaware, State Economic Development Authority Revenue, YMCA Delaware Project, 0.2%*, 5/1/2036, PNC Bank NA (a) | 6,275,000 | 6,275,000 |
| 22,267,208 |
District of Columbia 0.3% |
District of Columbia, Center for Internships & Academic Revenue, 0.26%*, 7/1/2036, Branch Banking & Trust (a) | 3,400,000 | 3,400,000 |
District of Columbia, Housing Finance Agency, Multi-Family Housing Revenue, Series R-433, 144A, AMT, 0.32%*, 12/1/2021 | 7,780,000 | 7,780,000 |
| 11,180,000 |
Florida 7.6% |
Alachua County, FL, Housing Finance Authority, Multi-Family Revenue, Santa Fe I Apartments, AMT, 0.35%*, 12/15/2038, Citibank NA (a) | 3,850,000 | 3,850,000 |
Broward County, FL, Housing Finance Authority, Multi-Family Housing Revenue, Palms of Deerfield Beach, AMT, 0.35%*, 8/15/2038, Citibank NA (a) | 2,560,000 | 2,560,000 |
Florida, BB&T Municipal Trust: |
| Series 1010, 144A, 0.33%*, 1/15/2019, Branch Banking & Trust (a) | 7,290,000 | 7,290,000 |
| Series 1029, 0.33%*, 7/1/2024, Branch Banking & Trust (a) | 10,830,000 | 10,830,000 |
| Series 1031, 0.33%*, 8/1/2024, Branch Banking & Trust (a) | 12,780,000 | 12,780,000 |
| Series 1012, 144A, 0.33%*, 11/1/2024, Branch Banking & Trust (a) | 9,870,000 | 9,870,000 |
Florida, Capital Trust Agency Housing Revenue, Atlantic Housing Foundation, Series A, 0.21%*, 7/15/2024 | 19,000,000 | 19,000,000 |
Florida, Development Finance Corp., Enterprise Board Program, Out of Door Academy, 0.27%*, 7/1/2038, Northern Trust Co. (a) | 13,500,000 | 13,500,000 |
Florida, Housing Finance Corp., Multi-Family Revenue, Victoria Park, Series J-1, 0.24%*, 10/15/2032 | 8,620,000 | 8,620,000 |
Florida, RBC Municipal Products, Inc. Trust, Series E-4, 144A, AMT, 0.38%*, 6/1/2010, Royal Bank of Canada (a) | 9,995,000 | 9,995,000 |
Florida, State Governmental Financing Commission Revenue: | |
| 0.34%*, 7/1/2016, Dexia Credit Local (a) | 24,650,000 | 24,650,000 |
| 0.6%, 11/10/2009 | 74,000,000 | 74,000,000 |
| 0.75%, 11/4/2009 | 50,000,000 | 50,000,000 |
Highlands County, FL, Health Facilities Authority Revenue, Adventist Health Hospital, Series G, 0.22%*, 11/15/2035, Branch Banking & Trust (a) | 8,000,000 | 8,000,000 |
Lee County, FL, Industrial Development Authority, Health Care Facilities Revenue, Hope Hospice Project, 0.27%*, 10/1/2027, Northern Trust Co. (a) | 17,000,000 | 17,000,000 |
Palm Beach County, FL, Community Foundation, Palm Beach Project Revenue, 0.4%*, 3/1/2034, Northern Trust Co. (a) | 4,750,000 | 4,750,000 |
Pinellas County, FL, Educational Facilities Authority Revenue, Barry University Project, 0.26%*, 10/1/2037, Bank of America NA (a) | 9,340,000 | 9,340,000 |
Sarasota County, FL, Health Care Facilities Authority Revenue, Bay Village Project, 0.28%*, 12/1/2023, Bank of America NA (a) | 1,900,000 | 1,900,000 |
Sarasota County, FL, Public Hospital District Revenue, Sarasota Memorial Hospital, Series B, 0.2%*, 7/1/2037, Bank of America NA (a) | 7,500,000 | 7,500,000 |
Volusia County, FL, Housing Finance Authority, Multi-Family Housing Revenue, Cape Morris Cove Apartments, Series A, AMT, 0.31%*, 10/15/2042, JPMorgan Chase Bank (a) | 6,140,000 | 6,140,000 |
| 301,575,000 |
Georgia 4.8% |
Atlanta, GA, Revenue Bond, Series 2008-3046X, 144A, 0.31%*, 7/1/2037 (b) | 6,665,000 | 6,665,000 |
Cobb County, GA, Tax Anticipation Notes, 1.25%, 12/31/2009 | 110,000,000 | 110,143,821 |
Fulton County, GA, Development Authority Revenue, Doris & Alex Weber School Project, 0.26%*, 12/1/2030, Branch Banking & Trust (a) | 5,000,000 | 5,000,000 |
Fulton County, GA, Development Authority Revenue, Kings Ridge Christian School, 0.26%*, 5/1/2026, Branch Banking & Trust (a) | 2,500,000 | 2,500,000 |
Fulton County, GA, Development Authority Revenue, Mount Vernon Presbyterian School, 0.26%*, 8/1/2035, Branch Banking & Trust (a) | 2,700,000 | 2,700,000 |
Georgia, Municipal Electric Authority Power Revenue, Municipal Securities Trust Receipts, Series SGC-60, "A", 144A, 0.26%*, 1/1/2018 (b) | 4,680,000 | 4,680,000 |
Georgia, Private Colleges & Universities Authority Revenue, Mercer University Project: | |
| Series C, 0.27%*, 10/1/2031, Branch Banking & Trust (a) | 8,695,000 | 8,695,000 |
| Series A, 0.27%*, 10/1/2036, Branch Banking & Trust (a) | 11,040,000 | 11,040,000 |
Georgia, RBC Municipal Products, Inc. Trust, Series C-9, AMT, 0.38%*, 8/1/2016, Royal Bank of Canada (a) | 30,495,000 | 30,495,000 |
Georgia, State General Obligation, Series H-3, 0.25%*, 12/1/2026 | 9,319,000 | 9,319,000 |
| 191,237,821 |
Hawaii 0.3% |
Hawaii, State Department of Budget & Finance, Special Purpose Revenue, Hawaii Pacific Health, Series A, 0.23%*, 7/1/2035, Union Bank NA (a) | 11,100,000 | 11,100,000 |
Idaho 1.5% |
Idaho, Housing & Finance Association, Single Family Mortgage: | |
| Series B, AMT, 0.36%*, 7/1/2032 | 5,460,000 | 5,460,000 |
| "I", Series A, AMT, 0.36%*, 7/1/2033 | 6,280,000 | 6,280,000 |
| "I", Series B, AMT, 0.36%*, 7/1/2033 | 6,160,000 | 6,160,000 |
Idaho, Non-Profit Housing & Finance Association Facilities Revenue, College of Idaho Project, 0.22%*, 7/1/2030, US Bank NA (a) | 4,950,000 | 4,950,000 |
Idaho, State Tax Anticipation Notes, 2.5%, 6/30/2010 | 35,000,000 | 35,483,159 |
| 58,333,159 |
Illinois 8.0% |
Channahon, IL, Morris Hospital Revenue: |
| Series B, 0.24%*, 12/1/2032, US Bank NA (a) | 4,195,000 | 4,195,000 |
| Series C, 0.24%*, 12/1/2032, US Bank NA (a) | 5,355,000 | 5,355,000 |
Chicago, IL, Board of Education, Dedicated Revenues: |
| Series A-2, 0.22%*, 3/1/2026, Northern Trust Co. (a) | 5,900,000 | 5,900,000 |
| Series A-1, 0.23%*, 3/1/2026, Harris NA (a) | 4,900,000 | 4,900,000 |
Chicago, IL, General Obligation, Series 2008-068, 144A, 0.51%*, 1/1/2022, Dexia Credit Local (a) (b) | 11,540,000 | 11,540,000 |
Chicago, IL, Metropolitan Water Reclamation District, Greater Chicago, Series 2008-052, 144A, 0.51%*, 12/1/2035 | 25,160,000 | 25,160,000 |
Chicago, IL, O'Hare International Airport Revenue, 0.35%, 11/10/2009 | 7,000,000 | 7,000,000 |
Cook County, IL, Catholic Theological Union Project Revenue, 0.35%*, 2/1/2035, Harris NA (a) | 6,000,000 | 6,000,000 |
Illinois, BB&T Municipal Trust, Series 5001, 144A, 0.42%*, 6/1/2020, Rabobank International (a) | 19,456,657 | 19,456,657 |
Illinois, Development Finance Authority Revenue, Shelby Memorial Hospital Association, Inc., Series B-1, 0.39%*, 10/1/2029, Comerica Bank (a) | 7,315,000 | 7,315,000 |
Illinois, Development Finance Authority, Industrial Development Revenue, Home Run Inn Frozen Foods, AMT, 1.4%*, 4/1/2020, JPMorgan Chase Bank (a) | 1,245,000 | 1,245,000 |
Illinois, Education Facilities Authority Revenue: |
| 0.35%, 11/19/2009 | 30,000,000 | 30,000,000 |
| 0.35%, 11/23/2009 | 20,200,000 | 20,200,000 |
Illinois, Educational Facilities Authority Revenues, University of Chicago: | |
| Series B-1, 0.52%*, Mandatory Put 8/12/2010 @ 100, 7/1/2036 | 9,500,000 | 9,499,306 |
| Series B-2, 0.52%*, Mandatory Put 8/26/2010 @ 100, 7/1/2036 | 8,600,000 | 8,600,000 |
Illinois, Finance Authority Industrial Development Revenue, Fitzpatrick Brothers, 0.27%*, 4/1/2033, Northern Trust Co. (a) | 5,000,000 | 5,000,000 |
Illinois, Finance Authority Pollution Control Revenue, Commonwealth Edison Co.: | |
| Series F, 144A, 0.25%*, 3/1/2017, JPMorgan Chase Bank (a) | 10,100,000 | 10,100,000 |
| Series E, 144A, 0.25%*, 5/1/2021, JPMorgan Chase Bank (a) | 8,305,000 | 8,305,000 |
Illinois, Finance Authority Revenue, "A", 144A, 0.21%*, 12/1/2042 | 8,565,000 | 8,565,000 |
Illinois, Finance Authority Revenue, Clare Oaks: |
| Series C, 0.22%*, 11/1/2040, Sovereign Bank FSB (a) | 5,000,000 | 5,000,000 |
| Series D, 0.22%*, 11/1/2040, Sovereign Bank FSB (a) | 3,500,000 | 3,500,000 |
Illinois, Finance Authority Revenue, Northwestern University, Series A, 0.5%*, Mandatory Put 3/31/2010 @ 100, 12/1/2046 | 29,000,000 | 29,000,000 |
Illinois, Finance Authority Revenue, The Art Institution of Chicago: | |
| Series B-1, 0.3%*, 9/1/2038, JPMorgan Chase Bank (a) | 5,670,000 | 5,670,000 |
| Series B-2, 0.3%*, 9/1/2038, Northern Trust Co. (a) | 2,595,000 | 2,595,000 |
Illinois, Finance Authority Student Housing Revenue, CHF-Dekalb LLC Project, Series A, 0.25%*, 7/1/2038, Sovereign Bank FSB (a) | 6,000,000 | 6,000,000 |
Illinois, RBC Municipal Products, Inc. Trust, Finance Authority Revenue, Series E-10, 144A, 0.28%*, 3/1/2011, Royal Bank of Canada (a) | 10,000,000 | 10,000,000 |
Illinois, Regional Transit Improvements, Series 2008-3043X, 144A, 0.36%*, 7/1/2026 | 6,665,000 | 6,665,000 |
Illinois, University of Illinois Revenue, "A", 144A, 0.24%*, 4/1/2035 | 14,300,000 | 14,300,000 |
Mundelein, IL, Industrial Development Revenue, MacLean Fogg Co. Project, AMT, 0.57%*, 1/1/2015, Northern Trust Co. (a) | 6,500,000 | 6,500,000 |
Woodstock, IL, Multi-Family Housing Revenue, Willow Brooke Apartments, AMT, 0.31%*, 4/1/2042, Wells Fargo Bank NA (a) | 28,000,000 | 28,000,000 |
| 315,565,963 |
Indiana 0.7% |
Indiana, Finance Authority Hospital Revenue, Community Foundation of Northwest Indiana, 0.22%*, 8/1/2029, Harris NA (a) | 6,970,000 | 6,970,000 |
Indiana, Health & Educational Facility, Financing Authority Revenue, Greenwood Village South Project, Series A, 0.22%*, 5/1/2036, Sovereign Bank FSB (a) | 12,625,000 | 12,625,000 |
Terre Haute, IN, Westminster Village Revenue, Series A, 0.22%*, 8/1/2036, Sovereign Bank FSB (a) | 9,245,000 | 9,245,000 |
| 28,840,000 |
Iowa 1.4% |
Iowa, Finance Authority Revenue, Senior Revenue Anticipation Notes, Series A, 2.5%, 6/23/2010 | 36,000,000 | 36,447,424 |
Iowa, Finance Authority, Health Facilities Revenue, Care Initiatives Project, 0.2%*, 11/1/2026, KBC Bank NV (a) | 4,010,000 | 4,010,000 |
Iowa, State School Cash Anticipation Program, School Corporations, Series B, 3.0%, 1/21/2010, US Bank NA (a) | 14,000,000 | 14,067,791 |
| 54,525,215 |
Kansas 0.4% |
Kansas, State Development Finance Authority, Multi-Family Revenue, Oak Ridge Park II Project, Series X, AMT, 0.36%*, 12/1/2036, Marshall & Ilsley (a) | 3,650,000 | 3,650,000 |
Lenexa, KS, Series 2007-302, 144A, 0.76%*, 2/1/2012 | 12,495,000 | 12,495,000 |
| 16,145,000 |
Kentucky 0.1% |
Mason County, KY, Pollution Control Revenue, East Kentucky Power Corp., Inc., Series B-2, 1.01%*, 10/15/2014 | 4,000,000 | 4,000,000 |
Maine 0.5% |
Maine, State Housing Authority Mortgage Purchase: |
| Series G, AMT, 0.25%*, 11/15/2037 | 4,970,000 | 4,970,000 |
| Series B, AMT, 0.3%*, 11/15/2041 | 5,000,000 | 5,000,000 |
| Series D, AMT, 0.31%*, 11/15/2042 | 10,000,000 | 10,000,000 |
| 19,970,000 |
Maryland 1.5% |
Baltimore, MD, Municipal Securities Trust Receipts, SGA 152, "A", 144A, 0.33%*, 7/1/2020, Societe Generale (a) | 10,000,000 | 10,000,000 |
Maryland, State Health & Higher Educational Facilities Authority Revenue: | |
| 0.4%, 11/3/2009 | 25,000,000 | 25,000,000 |
| Series A, 0.4%, 1/7/2010 | 13,777,000 | 13,777,000 |
Maryland, State Health & Higher Educational Facilities Authority Revenue, Upper Chesapeake Hospital, Series B, 0.26%*, 1/1/2043, Branch Banking & Trust (a) | 11,955,000 | 11,955,000 |
| 60,732,000 |
Massachusetts 2.4% |
Massachusetts, Bay Transportation Authority, General Transportation Systems, 0.3%*, 3/1/2030 | 15,400,000 | 15,400,000 |
Massachusetts, Bay Transportation Authority, Sales Tax Revenue, Series A-1, 0.16%*, 7/1/2021 | 16,400,000 | 16,400,000 |
Massachusetts, Macon Trust, Series 2007-310, 144A, 0.76%*, 6/15/2012, Bank of America NA (a) | 4,150,000 | 4,150,000 |
Massachusetts, State Development Finance Agency Revenue, New Bedford Waste Services LLC, AMT, 0.42%*, 6/1/2021, Comerica Bank (a) | 3,520,000 | 3,520,000 |
Massachusetts, State Development Finance Agency Revenue, Northfield Mount Hermon, 0.26%*, 10/1/2042, JPMorgan Chase Bank (a) | 5,000,000 | 5,000,000 |
Massachusetts, State Development Finance Agency Revenue, The Fay School, Inc., 0.3%*, 4/1/2038, TD Bank NA (a) | 5,400,000 | 5,400,000 |
Massachusetts, State Development Finance Agency Revenue, Wentworth Institute, 0.4%*, 10/1/2030, RBS Citizens NA (a) | 28,285,000 | 28,285,000 |
Massachusetts, State General Obligation, Series B, 0.24%*, 3/1/2026 | 9,800,000 | 9,800,000 |
Massachusetts, State Industrial Finance Agency Revenue, Groton School Issue, Series B, 0.3%*, 3/1/2028 | 8,410,000 | 8,410,000 |
| 96,365,000 |
Michigan 1.7% |
Michigan, RBC Municipal Products, Inc. Trust, Series L-25, 144A, AMT, 0.35%*, 9/1/2033, Royal Bank of Canada (a) | 66,745,000 | 66,745,000 |
Minnesota 0.3% |
Coon Rapids, MN, Industrial Development Revenue, Kurt Manufacturing Project: | |
| AMT, 0.31%*, 11/1/2027, US Bank NA (a) | 5,000,000 | 5,000,000 |
| AMT, 0.51%*, 11/1/2017, US Bank NA (a) | 2,565,000 | 2,565,000 |
Minnesota, State General Obligation, Prerefunded 6/1/2010 @ 100, 5.625%, 6/1/2019 | 3,000,000 | 3,089,112 |
| 10,654,112 |
Mississippi 0.2% |
Mississippi, Redstone Partners Floaters/Residuals Trust, Series C, 144A, AMT, 0.46%*, 12/1/2047, Wachovia Bank NA (a) | 9,375,000 | 9,375,000 |
Missouri 0.7% |
Missouri, Bi-State Development Agency, Illinois Metropolitan District Revenue, Metrolink, Series A, 0.19%*, 10/1/2035, JPMorgan Chase Bank (a) | 8,000,000 | 8,000,000 |
Missouri, State Health & Educational Facilities Authority Revenue, Lutheran Senior Services Project, 0.22%*, 2/1/2039, US Bank NA (a) | 9,000,000 | 9,000,000 |
Platte County, MO, Industrial Development Authority Revenue, Complete Home Concepts, Series A, AMT, 0.31%*, 1/1/2039, Columbian Bank (a) | 6,800,000 | 6,800,000 |
Springfield, MO, Industrial Development Authority Revenue, Abec, Inc. Project, AMT, 0.41%*, 6/1/2028, US Bank NA (a) | 3,100,000 | 3,100,000 |
| 26,900,000 |
Nebraska 0.3% |
Nebraska, Investment Finance Authority, Single Family Housing Revenue: | |
| Series B, AMT, 0.4%*, 9/1/2034 | 3,885,000 | 3,885,000 |
| Series D, AMT, 0.4%*, 9/1/2034 | 3,355,000 | 3,355,000 |
| Series E, AMT, 0.4%*, 9/1/2034 | 1,485,000 | 1,485,000 |
Omaha, NE, Public Power District Electric Revenue, Series R-11291, 144A, 0.21%*, 8/1/2012 | 2,485,000 | 2,485,000 |
| 11,210,000 |
Nevada 1.6% |
Clark County, NV, General Obligation, Series 3489Z, 144A, 0.2%*, 1/1/2017 | 11,965,000 | 11,965,000 |
Clark County, NV, School District Building, Series A, 5.0%, 6/15/2010 | 20,800,000 | 21,352,248 |
Nevada, Housing Division, Multi-Unit Housing, Apache Project, Series A, AMT, 0.33%*, 10/15/2032 | 4,400,000 | 4,400,000 |
Nevada, Housing Division, Single Family Mortgage Revenue: |
| Series A, AMT, 0.45%*, 10/1/2039 | 14,700,000 | 14,700,000 |
| Series B, AMT, 0.45%*, 4/1/2042 | 8,000,000 | 8,000,000 |
Nevada, State Director Department of Business & Industry, Nevada Cancer Institute Project, 0.26%*, 12/1/2033, Bank of America NA (a) | 4,000,000 | 4,000,000 |
| 64,417,248 |
New Hampshire 0.9% |
New Hampshire, Health & Education Facilities Authority Revenue, Phillips Exeter Academy, 0.25%*, 9/1/2042 | 20,000,000 | 20,000,000 |
New Hampshire, Health & Education Facilities Authority Revenue, RiverWoods at Exeter, 0.22%*, 3/1/2038, Bank of America NA (a) | 14,000,000 | 14,000,000 |
| 34,000,000 |
New Jersey 0.1% |
New Jersey, Economic Development Authority, Industrial Development Revenue, CST-Products LLC Project, AMT, 0.42%*, 4/1/2026, National Bank of Canada (a) | 2,840,000 | 2,840,000 |
New Mexico 1.1% |
New Mexico, Educational Assistance Foundation: |
| Series A-1, AMT, 0.3%*, 4/1/2034, Royal Bank of Canada (a) | 10,000,000 | 10,000,000 |
| Series A-2, AMT, 0.3%*, 4/1/2034, Royal Bank of Canada (a) | 10,000,000 | 10,000,000 |
University of New Mexico, Systems Improvement Revenues, 0.29%*, 6/1/2026 | 23,655,000 | 23,655,000 |
| 43,655,000 |
New York 2.4% |
Glen Cove, NY, Housing Authority Revenue, Series 57G, 144A, AMT, 0.22%*, 10/1/2026 | 3,900,000 | 3,900,000 |
Hempstead, NY, Industrial Development Agency Revenue, Series 92G, 144A, AMT, 0.22%*, 10/1/2045 | 835,000 | 835,000 |
Nassau County, NY, Interim Finance Authority Revenue: |
| Series D-2, 0.2%*, 11/15/2015 | 3,000,000 | 3,000,000 |
| Series D-1, 0.22%*, 11/15/2017 | 1,310,000 | 1,310,000 |
New York, Metropolitan Transportation Authority Revenue, Series D-2, 0.25%*, 11/1/2032 (b) | 12,665,000 | 12,665,000 |
New York, State Dormitory Authority Revenues, State Supported Debt, City University of New York, Series C, 0.18%*, 7/1/2031, Bank of America NA (a) | 3,300,000 | 3,300,000 |
New York, State Housing Finance Agency Revenue, 100 Maiden Lane, Series A, 0.18%*, 5/15/2037 | 12,000,000 | 12,000,000 |
New York, State Housing Finance Agency Revenue, Helena Housing, Series A, AMT, 0.26%*, 5/15/2036 | 8,000,000 | 8,000,000 |
New York, State Urban Development Corp. Revenue: |
| Series 2008-053, 144A, 0.51%*, 3/15/2023, Dexia Credit Local (a) | 2,415,000 | 2,415,000 |
| Series 2008-054, 144A, 0.51%*, 3/15/2024, Dexia Credit Local (a) | 11,950,000 | 11,950,000 |
New York, Triborough Bridge & Tunnel Authority Revenues, Series A-1, 2.0%*, Mandatory Put 1/20/2010 @ 100, 11/15/2038 | 15,000,000 | 15,044,178 |
New York City, NY, Industrial Development Agency Revenue, Empowerment Zone, Tiago Holdings LLC, AMT, 0.24%*, 1/1/2037, ING Bank NV (a) | 2,400,000 | 2,400,000 |
Port Authority of New York & New Jersey, 0.35%, 1/6/2010 | 11,600,000 | 11,600,000 |
Ulster County, NY, Industrial Development Agency, Civic Facility Revenue, Kingston Regional Senior Living Corp., Series C, 0.25%*, 9/15/2037, Sovereign Bank FSB (a) | 6,000,000 | 6,000,000 |
| 94,419,178 |
North Carolina 4.5% |
Cleveland County, NC, Industrial Facilities & Pollution Control Financing Authority, Curtiss-Wright Flight Systems, AMT, 0.4%*, 11/1/2023, Bank of America NA (a) | 8,400,000 | 8,400,000 |
North Carolina, BB&T Municipal Trust: |
| Series 1027, 144A, 0.33%*, 3/1/2016, Branch Banking & Trust (a) | 11,085,000 | 11,085,000 |
| Series 1032, 0.33%*, 1/7/2024, Branch Banking & Trust (a) | 12,995,000 | 12,995,000 |
| Series 1008, 144A, 0.33%*, 3/1/2024, Branch Banking & Trust (a) | 6,225,000 | 6,225,000 |
| Series 1011, 144A, 0.33%*, 4/1/2024, Branch Banking & Trust (a) | 8,350,000 | 8,350,000 |
| Series 1024, 144A, 0.33%*, 5/31/2024, Branch Banking & Trust (a) | 5,240,000 | 5,240,000 |
| Series 1009, 144A, 0.33%*, 6/1/2024, Branch Banking & Trust (a) | 18,160,000 | 18,160,000 |
| Series 1025, 144A, 0.33%*, 6/1/2024, Branch Banking & Trust (a) | 11,300,000 | 11,300,000 |
North Carolina, Capital Educational Facilities Finance Agency Revenue, High Point University Project: | |
| 0.26%*, 12/1/2028, Branch Banking & Trust (a) | 6,000,000 | 6,000,000 |
| 0.26%*, 5/1/2030, Branch Banking & Trust (a) | 4,500,000 | 4,500,000 |
North Carolina, Capital Facilities Finance Agency, Educational Facilities Revenue, Salem Academy & College Project, 0.26%*, 8/1/2030, Branch Banking & Trust (a) | 7,170,000 | 7,170,000 |
North Carolina, Capital Facilities Finance Agency, Educational Facilities Revenue, Campbell University, 0.26%*, 10/1/2034, Branch Banking & Trust (a) | 5,925,000 | 5,925,000 |
North Carolina, Capital Facilities Finance Agency, Educational Facilities Revenue, Summit School, Inc. Project, 0.26%*, 6/1/2033, Branch Banking & Trust (a) | 2,700,000 | 2,700,000 |
North Carolina, Capital Facilities Finance Agency, Educational Revenue, Forsyth Country Day School, 0.26%*, 12/1/2031, Branch Banking & Trust (a) | 13,090,000 | 13,090,000 |
North Carolina, Medical Care Commission, Health Care Facilities Revenue, First Mortgage Deerfield, Series B, 0.26%*, 11/1/2038, Branch Banking & Trust (a) | 10,035,000 | 10,035,000 |
North Carolina, Medical Care Commission, Hospital Revenue, Southeastern Regional Medical Center, 0.26%*, 6/1/2037, Branch Banking & Trust (a) | 2,500,000 | 2,500,000 |
North Carolina, Medical Care Commission, Retirement Facilities Revenue, First Mortgage Southminster, Series C, 0.23%*, 10/1/2014, Sovereign Bank FSB (a) | 2,740,000 | 2,740,000 |
North Carolina, Medical Care Commission, Retirement Facilities Revenue, First Mortgage, United Methodist Church, Series B, 0.26%*, 10/1/2035, Branch Banking & Trust (a) | 4,805,000 | 4,805,000 |
North Carolina, Piedmont Triad Airport Authority Revenue: |
| Series A, 0.26%*, 7/1/2032, Branch Banking & Trust (a) | 3,450,000 | 3,450,000 |
| Series B, AMT, 0.4%*, 7/1/2029, Branch Banking & Trust (a) | 3,845,000 | 3,845,000 |
North Carolina, State Education Assistance Authority Revenue, Student Loan: | |
| Series A-2, AMT, 0.29%*, 9/1/2035, Royal Bank of Canada (a) | 9,000,000 | 9,000,000 |
| Series 5, AMT, 0.34%*, 9/1/2035, Branch Banking & Trust (a) | 16,570,000 | 16,570,000 |
University of North Carolina Revenues, Series R-11292, 144A, 0.21%*, 12/1/2015 | 3,075,000 | 3,075,000 |
| 177,160,000 |
Ohio 2.6% |
Akron, Bath & Copley, OH, Joint Township Hospital District Revenue, Health Care Facility, Summner Project, 0.35%*, 12/1/2032, KBC Bank NV (a) | 5,050,000 | 5,050,000 |
Cleveland, OH, Clinic Health System, 0.33%, 11/5/2009 | 15,800,000 | 15,800,000 |
Columbus, OH, Regional Airport Authority Revenue, Pooled Financing Program, Series A, 0.23%*, 1/1/2030, US Bank NA (a) | 5,065,000 | 5,065,000 |
Ohio, Clipper Tax-Exempt Certificate Trust, Certificate of Participation, Series 2009-28, 144A, AMT, 0.38%*, 3/1/2035 | 5,304,000 | 5,304,000 |
Ohio, Housing Finance Agency, Mortgage Revenue, Residential-Mortgage Backed, Series D, AMT, 0.28%*, 9/1/2036 | 45,000,000 | 45,000,000 |
Ohio, Redstone Partners Floaters/Residuals Trust, Housing Finance Authority: | |
| Series C, 144A, 0.46%*, 6/1/2048, Wachovia Bank NA (a) | 9,780,000 | 9,780,000 |
| Series D, 144A, AMT, 0.46%*, 6/1/2048, Wachovia Bank NA (a) | 4,340,000 | 4,340,000 |
Ohio, State Housing Finance Authority Revenue, Series 2008-3308, 144A, AMT, 0.41%*, 3/1/2033 | 10,965,000 | 10,965,000 |
| 101,304,000 |
Oklahoma 0.4% |
Oklahoma, Development Finance Authority, Continuing Care Retirement, Inverness Village Project, Series A, 0.25%*, 1/1/2042, KBC Bank NV (a) | 15,835,000 | 15,835,000 |
Oregon 0.4% |
Salem, OR, Hospital Facility Authority Revenue, Capital Manor, Inc. Project: | |
| 0.29%*, 5/1/2034, Bank of America NA (a) | 8,835,000 | 8,835,000 |
| 0.29%*, 5/1/2037, Bank of America NA (a) | 5,580,000 | 5,580,000 |
| 14,415,000 |
Pennsylvania 3.7% |
Adams County, PA, Industrial Development Authority Revenue, Brethren Home Community Project, 0.32%*, 6/1/2032, PNC Bank NA (a) | 7,525,000 | 7,525,000 |
Allegheny County, PA, RBC Municipal Products, Inc. Trust, Series E-11, 144A, 0.28%*, 12/1/2011, Royal Bank of Canada (a) | 10,000,000 | 10,000,000 |
Beaver County, PA, Industrial Development Authority, Pollution Control Revenue, FirstEnergy Nuclear Generation Corp., Series B, 0.22%*, 12/1/2035, Citibank NA (a) | 2,500,000 | 2,500,000 |
Bucks County, PA, Industrial Development Authority Revenue, Grand View Hospital: | |
| Series B, 0.19%*, 7/1/2039, PNC Bank NA (a) | 8,635,000 | 8,635,000 |
| Series A, 0.2%*, 7/1/2034, TD Bank NA (a) | 6,900,000 | 6,900,000 |
Butler County, PA, General Authority Revenue, New Castle Area School District, Series A, 0.2%*, 3/1/2029, PNC Bank NA (a) | 3,135,000 | 3,135,000 |
Cumberland County, PA, Municipal Authority Revenue, Asbury Pennsylvania Obligation Group, 0.22%*, 1/1/2043, KBC Bank NV (a) | 3,855,000 | 3,855,000 |
Dauphin County, PA, General Authority Revenue, Series 100G, 144A, 0.21%*, 1/1/2029 | 5,000,000 | 5,000,000 |
Lancaster, PA, Industrial Development Authority Revenue, Willow Valley Retirement, Series A, 0.19%*, 12/1/2039, PNC Bank NA (a) | 10,000,000 | 10,000,000 |
Monroe County, PA, Hospital Authority Revenue, Stars-Pocono Medical Center, Series B, 0.25%*, 1/1/2032, PNC Bank NA (a) | 7,045,000 | 7,045,000 |
Montgomery County, PA, Redevelopment Authority, Multi-Family Housing Revenue, Forge Gate Apartments Project, Series A, 0.19%*, 8/15/2031 | 1,510,000 | 1,510,000 |
Pennsylvania, BB&T Municipal Trust, Series 1, 0.27%*, 9/15/2015 | 8,535,000 | 8,535,000 |
Pennsylvania, Economic Development Financing Authority, Exempt Facilities Revenue: | |
| Series 1, 144A, 0.5%*, 12/1/2038, Wachovia Bank NA (a) | 10,000,000 | 10,000,000 |
| Series 1, 0.9%*, 12/1/2038, Wachovia Bank NA (a) | 12,500,000 | 12,500,000 |
Pennsylvania, Northeastern Hospital & Education Authority Revenue, Commonwealth Medical College Project, 0.19%*, 9/1/2034, PNC Bank NA (a) | 5,725,000 | 5,725,000 |
Pennsylvania, University of Pittsburgh, Commonwealth Systems of Higher Education, Panthers-Pitt Asset Notes, 144A, 5.0%, 8/1/2010 | 25,475,000 | 26,332,798 |
Philadelphia, PA, School District, Series C, 0.2%*, 6/1/2026, TD Bank NA (a) (b) | 6,200,000 | 6,200,000 |
Pittsburgh, PA, Water & Sewer Authority Systems Revenue, Series B2, 0.2%*, 9/1/2039, PNC Bank NA (a) | 9,000,000 | 9,000,000 |
Ridley, PA, School District, 0.23%*, 11/1/2029, TD Bank NA (a) | 2,920,000 | 2,920,000 |
| 147,317,798 |
Puerto Rico 0.1% |
Commonwealth of Puerto Rico, Special Obligation, Series 1211X, 0.21%*, 10/1/2018 | 2,700,000 | 2,700,000 |
Rhode Island 0.4% |
Rhode Island, Housing & Mortgage Finance Corp., Series R-11207, 144A, AMT, 0.28%*, 10/1/2032 | 9,610,000 | 9,610,000 |
Rhode Island, Single Family Housing, Series 2008-1110, 144A, AMT, 0.41%*, 10/1/2032 | 5,250,000 | 5,250,000 |
| 14,860,000 |
South Carolina 0.8% |
Greenwood County, SC, Exempt Facility Industrial Revenue, Fuji Photo Film Project, AMT, 0.36%*, 9/1/2011 | 10,300,000 | 10,300,000 |
Lexington County, SC, School District No. 001, Series B, 1.0%, 3/1/2010 (c) | 8,000,000 | 8,016,960 |
South Carolina, BB&T Municipal Trust, Series 1013, 144A, 0.33%*, 1/1/2020, Branch Banking & Trust (a) | 6,460,000 | 6,460,000 |
South Carolina, Jobs Economic Development Authority Revenue, Goodwill Industries of Upper South Carolina, Inc. Project, 0.26%*, 9/1/2028, Branch Banking & Trust (a) | 6,175,000 | 6,175,000 |
| 30,951,960 |
South Dakota 1.1% |
South Dakota, Conservancy District Revenue, State Revolving Fund Program, 0.7%*, 8/1/2029 | 35,000,000 | 35,000,000 |
South Dakota, Economic Development Finance Authority, Industrial Development Revenue, Wilson Trailer Project, 144A, AMT, 0.31%*, 2/1/2028, First American Bank (a) | 9,000,000 | 9,000,000 |
| 44,000,000 |
Tennessee 1.7% |
Blount County, TN, Public Building Authority, Local Government Public Improvement: | |
| Series C-3-A, 0.26%*, 6/1/2029 | 10,000,000 | 10,000,000 |
| Series E-5-A, 0.26%*, 6/1/2030, Branch Banking & Trust (a) | 41,945,000 | 41,945,000 |
Dickson, TN, Redstone Partners Floaters/Residuals Trust, Series B, AMT, 0.46%*, 12/1/2047, Wachovia Bank NA (a) | 3,120,000 | 3,120,000 |
Montgomery County, TN, Public Building Authority, Pooled Financing Revenue, Tennessee County Loan Pool, 0.26%*, 11/1/2027, Bank of America NA (a) | 4,030,000 | 4,030,000 |
Selmer/McNairy County, TN, Industrial Development Board Revenue, United Stainless, Inc., AMT, 0.4%*, 12/1/2023, Bank of America NA (a) | 8,500,000 | 8,500,000 |
| 67,595,000 |
Texas 16.9% |
Atascosa County, TX, Industrial Development Corp., Pollution Control Revenue, San Miguel Electric Cooperative, Inc., 1.09%*, 6/30/2020 | 44,200,000 | 44,200,000 |
Austin, TX, Hotel Occupancy Tax Revenue, Series A, 0.26%*, 11/15/2029, Dexia Credit Local (a) | 15,020,000 | 15,020,000 |
Dallas, TX, Independent School Building District, 5.0%, 2/15/2010 | 12,980,000 | 13,145,028 |
East Texas, Housing Finance, Redstone Partners Floaters/Residuals Trust, Series D, 144A, AMT, 0.46%*, 12/1/2047, Wachovia Bank NA (a) | 7,945,000 | 7,945,000 |
Harris County, TX, Cultural Education Facilities Finance Corp. Revenue, Memorial Hermann Healthcare System, Series D-3, 0.55%*, 6/1/2029, Compass Bank (a) | 4,625,000 | 4,625,000 |
Harris County, TX, Cultural Education Facilities Finance Corp., Special Facilities Revenue, Texas Medical Center, Series B-2, 0.55%*, 9/1/2031, Compass Bank (a) | 4,100,000 | 4,100,000 |
Harris County, TX, Metropolitan Transit Authority, 0.38%, 12/3/2009 | 13,250,000 | 13,250,000 |
Harris County, TX, Tax Anticipation Notes: |
| 1.5%, 2/25/2010 | 110,000,000 | 110,395,873 |
| 2.0%, 2/25/2010 | 10,000,000 | 10,052,292 |
Houston, TX, Housing Finance Corp., Series 2110, 144A, AMT, 0.28%*, 12/1/2040 | 4,515,000 | 4,515,000 |
Houston, TX, Utility Systems Revenue, Series B1, 0.2%*, 5/15/2034, Bank of America NA, Bank of New York Mellon Corp., Dexia Credit Local and State Street Bank & Trust Co. (a) | 6,700,000 | 6,700,000 |
Houston, TX, Water & Sewer System Revenue, Series 27TPZ, 144A, 0.26%*, 12/1/2028 (b) | 14,100,000 | 14,100,000 |
Katy, TX, Independent School Building District, 0.2%*, 8/15/2033 | 8,700,000 | 8,700,000 |
Leander, TX, Independent School District, Series R-11662, 144A, 0.21%*, 8/15/2015 | 3,750,000 | 3,750,000 |
North Texas, Higher Education Authority, Inc., Student Loan Revenue, Series A, AMT, 0.35%*, 12/1/2038, Lloyds TSB Bank PLC (a) | 2,600,000 | 2,600,000 |
Tarrant County, TX, Cultural Education Facilities Finance Corp. Revenue, Christus Health, Series C-5, 0.35%*, 7/1/2031, Compass Bank (a) | 10,000,000 | 10,000,000 |
Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement Facilities, Northwest Senior Edgemere Project, Series B, 144A, 0.22%*, 11/15/2036, LaSalle Bank NA (a) | 9,505,000 | 9,505,000 |
Texas, A&M University Revenues, Financing Systems, Series C, 2.0%, 5/15/2010 (c) | 6,620,000 | 6,676,005 |
Texas, BB&T Municipal Trust, Series 2008-57, 144A, 0.21%*, 12/1/2019, Branch Banking & Trust (a) (b) | 18,145,000 | 18,145,000 |
Texas, Capital Area Housing Finance Corp., Cypress Creek at River Apartments, AMT, 0.3%*, 10/1/2039, Citibank NA (a) | 11,000,000 | 11,000,000 |
Texas, Department of Housing, Series 2008-3022X, 144A, AMT, 0.41%*, 9/1/2032 | 6,600,000 | 6,600,000 |
Texas, North East Independent School District, "A", 144A, 0.21%*, 8/1/2037 | 8,935,000 | 8,935,000 |
Texas, Northside Independent School District, School Building, 1.2%*, Mandatory Put 6/1/2010 @ 100, 6/1/2037 | 28,260,000 | 28,260,000 |
Texas, RBC Municipal Products, Inc. Trust, Series L-46, 144A, AMT, 0.35%*, 12/1/2034, Royal Bank of Canada (a) | 52,995,000 | 52,995,000 |
Texas, State Department of Housing & Community Affairs, Multi-Family Housing Revenue, Series 2108, 144A, AMT, 0.28%*, 6/20/2047 | 3,375,000 | 3,375,000 |
Texas, State Tax & Revenue Anticipation Notes, 2.5%, 8/31/2010 | 111,000,000 | 112,876,095 |
Texas, State Transportation Commission Revenue, First Tier, Series A, 5.0%, 4/1/2010 | 5,000,000 | 5,090,001 |
Texas, State Veteran Housing Assistance Fund II, Series A, AMT, 0.26%*, 12/1/2038 | 17,590,000 | 17,590,000 |
Texas, University of Houston, Series 2008-3315, 144A, 0.31%*, 2/15/2033 (b) | 9,335,000 | 9,335,000 |
Texas, University of Houston, Tax Exempt Revenues, 0.47%, 1/7/2010 | 7,100,000 | 7,100,000 |
Texas, University of Texas Systems Revenue: |
| Series A, 0.22%, 11/16/2009 | 20,000,000 | 20,000,000 |
| Series F, 0.3%, 12/7/2009 | 20,000,000 | 20,000,000 |
| Series A, 0.3%, 1/7/2010 | 19,500,000 | 19,500,000 |
Travis County, TX, Health Facilities Development Corp., Retirement Facilities Revenue, Longhorn Village Project, Series B, 0.25%*, 7/1/2037, Bank of Scotland (a) | 10,500,000 | 10,500,000 |
Tyler, TX, Independent School District, School Building, Series A, 0.5%*, 2/15/2025 | 22,000,000 | 22,000,000 |
Weslaco, TX, Health Facilities Development, Knapp Medical Center, Series A, 0.75%*, 6/1/2038, Compass Bank (a) | 4,775,000 | 4,775,000 |
| 667,355,294 |
Utah 2.2% |
Utah, Housing Corp., Series 2008-3300, 144A, AMT, 0.41%*, 1/1/2039 | 5,000,000 | 5,000,000 |
Utah, Housing Corp., Single Family Mortgage Revenue: |
| Series 3, 0.5%*, Mandatory Put 12/18/2009 @ 100, 7/1/2040 | 8,000,000 | 8,000,000 |
| Series 4, AMT, 0.6%*, Mandatory Put 12/18/2009 @ 100, 7/1/2035 | 3,250,000 | 3,250,000 |
Utah, Transportation Authority Revenue, Series 2008-3045X, 144A, 0.31%*, 6/15/2036 (b) | 2,500,000 | 2,500,000 |
Utah, Water Finance Agency Revenue, Series B-3, 0.29%*, 7/1/2036 | 38,800,000 | 38,800,000 |
Utah, Water Finance Agency Revenue, Series B-1, 0.29%*, 10/1/2037 | 28,565,000 | 28,565,000 |
| 86,115,000 |
Virginia 2.8% |
Norfolk, VA, Bond Anticipation Notes, Series C, 1.25%, 3/1/2010 | 44,710,000 | 44,835,062 |
Norfolk, VA, State General Obligation, 0.2%*, 8/1/2037 | 11,640,000 | 11,640,000 |
Virginia, College Building Authority, Educational Facilities Revenue, University of Richmond: | |
| Series A, 0.8%*, Mandatory Put 3/1/2010 @ 100, 2/26/2039 | 10,500,000 | 10,500,000 |
| Series B, 0.8%*, Mandatory Put 2/1/2010 @ 100, 2/26/2039 | 4,000,000 | 4,000,000 |
Virginia, RBC Municipal Products, Inc. Trust: |
| Series C-2, 144A, AMT, 0.38%*, 1/1/2014, Royal Bank of Canada (a) | 9,455,000 | 9,455,000 |
| Series C-8, 144A, AMT, 0.38%*, 9/1/2039, Royal Bank of Canada (a) | 25,665,000 | 25,665,000 |
Winchester, VA, Industrial Development Authority, Residential Care Facility Revenue, Westminster Cantenbury, Series B, 0.26%*, 1/1/2035, Branch Banking & Trust (a) | 2,900,000 | 2,900,000 |
| 108,995,062 |
Washington 1.2% |
Seattle, WA, Water Systems Revenue, Series 2170, 144A, 0.21%*, 2/1/2031 (b) | 2,530,000 | 2,530,000 |
Washington, State Economic Development Finance Authority, Solid Waste Disposal Revenue, Waste Management, Inc. Project, Series D, AMT, 0.3%*, 7/1/2030, JPMorgan Chase Bank (a) | 8,000,000 | 8,000,000 |
Washington, State General Obligation: |
| Series 2599, 144A, 0.2%*, 1/1/2016 | 4,505,000 | 4,505,000 |
| Series 3087, 144A, 0.2%*, 7/1/2016 | 5,055,000 | 5,055,000 |
| Series R-11477, 0.21%*, 7/1/2014 (b) | 5,445,000 | 5,445,000 |
Washington, State Higher Education Facilities Authority Revenue, Seattle University Project, Series A, 0.24%*, 5/1/2028, US Bank NA (a) | 9,255,000 | 9,255,000 |
Washington, State Housing Finance Commission, Multi-Family Housing Revenue, Vintage Silverdale, Series A, AMT, 0.3%*, 9/15/2039 | 4,000,000 | 4,000,000 |
Washington, Wells Fargo Stage Trust, Series 21C, 144A, 0.2%*, 12/1/2037 | 10,400,000 | 10,400,000 |
| 49,190,000 |
West Virginia 0.7% |
West Virginia, Public Energy Authority Revenue, Morgantown Associates Project, AMT, 1.55%*, 7/1/2017, Dexia Credit Local (a) | 15,000,000 | 15,000,000 |
West Virginia, State Hospital Finance Authority Revenue, Cabell Huntington Hospital, Series A, 0.23%*, 1/1/2034, Branch Banking & Trust (a) | 13,480,000 | 13,480,000 |
| 28,480,000 |
Wisconsin 5.6% |
Appleton, WI, Redevelopment Authority Revenue, Fox Cities Performing Arts Center, Inc., Series B, 0.3%*, 6/1/2036, JPMorgan Chase Bank (a) | 18,400,000 | 18,400,000 |
Ladysmith, WI, Industrial Development Revenue, Indeck Ladysmith LLC Project, Series A, 0.27%*, 8/1/2027, Wells Fargo Bank NA (a) | 10,000,000 | 10,000,000 |
Milwaukee, WI, General Obligation: |
| Series V8, 0.26%*, 2/1/2025 | 2,700,000 | 2,700,000 |
| Series 2009-R3, 1.25%, 12/17/2009 | 50,000,000 | 50,050,746 |
| Series 2009-R3, 1.5%, 12/17/2009 | 66,000,000 | 66,086,863 |
Plymouth, WI, Industrial Development Revenue, Masters Gallery Foods, Series A, AMT, 0.37%*, 5/1/2038, Wells Fargo Bank NA (a) | 5,300,000 | 5,300,000 |
Racine, WI, Solid Waste Disposal Revenue, Republic Services Project, 0.3%*, 11/1/2037, JPMorgan Chase Bank (a) | 5,000,000 | 5,000,000 |
University of Wisconsin, Hospitals & Clinics Authority Revenue, Series A, 0.2%*, 4/1/2032, US Bank NA (a) | 4,870,000 | 4,870,000 |
Whitewater, WI, Industrial Development Revenue, MacLean-Fogg Co. Project, AMT, 0.4%*, 12/1/2009, Bank of America NA (a) | 3,000,000 | 3,000,000 |
Wisconsin, Clipper Tax-Exempt Certificates Trust, Certificate of Participation, Series 2009-36, 144A, 0.31%*, 5/1/2020 | 6,755,000 | 6,755,000 |
Wisconsin, State Operating Notes, 2.5%, 6/15/2010 | 50,000,000 | 50,620,367 |
| 222,782,976 |
Wyoming 1.4% |
Platte County, WY, Pollution Control Revenue, Tri-State Generation & Transmission Association, Inc., Series A, 0.7%*, 7/1/2014, National Rural Utilities Cooperative Finance Corp. (a) | 1,100,000 | 1,100,000 |
Sweetwater County, WY, Pollution Control Revenue, 0.35%, 11/5/2009 | 13,175,000 | 13,175,000 |
Wyoming, Student Loan Corp. Revenue, Series A-3, AMT, 0.29%*, 12/1/2043, Royal Bank of Canada (a) | 40,000,000 | 40,000,000 |
| 54,275,000 |
| % of Net Assets | Value ($) |
| |
Total Investment Portfolio (Cost $3,958,308,994)+ | 100.4 | 3,958,308,994 |
Other Assets and Liabilities, Net | (0.4) | (15,922,831) |
Net Assets | 100.0 | 3,942,386,163 |
* 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 October 31, 2009.
+ The cost for federal income tax purposes was $3,958,308,994.
(a) The security incorporates a letter of credit from the bank listed.
(b) Bond is insured by the following company:
Insurance Coverage | As a % of Total Investment Portfolio |
Ambac Financial Group, Inc. | 0.7 |
Assured Guaranty Corp. | 0.2 |
Financial Security Assurance, Inc. | 1.8 |
National Public Finance Guarantee Corp. | 0.1 |
Many insurers who have traditionally guaranteed payment of municipal issues have been downgraded by the major rating agencies.
(c) When-issued securities
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
AMT: Subject to alternative minimum tax
FSB: Federal Savings Bank
Prerefunded: bonds which are prerefunded are collateralized usually by US Treasury securities which are held in escrow and used to pay principal and interest on tax-exempt issues and to retire the bonds in full at the earliest refunding date.
Fair Value Measurements
Various inputs are used in determining the value of the Portfolio's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Portfolio's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Most securities held by a money market fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
The following is a summary of the inputs used as of October 31, 2009 in valuing the Portfolio's investments. For information on the Portfolio's policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to the Financial Statements.
Assets | Level 1 | Level 2 | Level 3 | Total |
Municipal Investments (d) | $ — | $ 3,958,308,994 | $ — | $ 3,958,308,994 |
Total | $ — | $ 3,958,308,994 | $ — | $ 3,958,308,994 |
(d) See Investment Portfolio for additional detailed categorizations.
The accompanying notes are an integral part of the financial statements.
Financial Statements
Tax-Exempt Portfolio
Statement of Assets and Liabilities as of October 31, 2009 (Unaudited) |
Assets | Tax-Exempt Portfolio |
Investments in securities, valued at amortized cost | $ 3,958,308,994 |
Receivable for investments sold | 5,056,233 |
Receivable for Portfolio shares sold | 971,366 |
Interest receivable | 8,542,816 |
Due from Advisor | 15,164 |
Other assets | 112,136 |
Total assets | 3,973,006,709 |
Liabilities |
Cash overdraft | 4,364,358 |
Payable for investments purchased | 8,700,000 |
Payable for when-issued securities purchased | 14,692,965 |
Payable for Portfolio shares redeemed | 1,194,141 |
Distributions payable | 117,592 |
Accrued management fee | 271,228 |
Other accrued expenses and payables | 1,280,262 |
Total liabilities | 30,620,546 |
Net assets, at value | $ 3,942,386,163 |
Net Assets Consist of |
Undistributed net investment income | 698,315 |
Accumulated net realized gain (loss) | 39,386 |
Paid-in capital | 3,941,648,462 |
Net assets, at value | $ 3,942,386,163 |
The accompanying notes are an integral part of the financial statements.
Statement of Assets and Liabilities as of October 31, 2009 (Unaudited) (continued) |
Net Asset Value | Tax-Exempt Portfolio |
Capital Assets Funds Shares Net Asset Value, offering and redemption price per share ($20,930,657 ÷ 20,925,459 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Davidson Cash Equivalent Shares Net Asset Value, offering and redemption price per share ($76,184,811 ÷ 76,162,181 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
DWS Tax-Exempt Cash Institutional Shares Net Asset Value, offering and redemption price per share ($2,397,700,493 ÷ 2,397,341,613 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
DWS Tax-Exempt Money Fund Net Asset Value, offering and redemption price per share ($472,855,196 ÷ 472,664,236 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
DWS Tax-Free Money Fund Class S Net Asset Value, offering and redemption price per share ($147,268,958 ÷ 147,053,247 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Premier Money Market Shares Net Asset Value, offering and redemption price per share ($29,356,454 ÷ 29,351,974 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Service Shares Net Asset Value, offering and redemption price per share ($58,901,958 ÷ 58,884,818 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Tax-Exempt Cash Managed Shares Net Asset Value, offering and redemption price per share ($255,314,128 ÷ 255,261,073 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Tax-Free Investment Class Net Asset Value, offering and redemption price per share ($483,873,508 ÷ 483,804,785 outstanding shares of beneficial interest, no 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 October 31, 2009 (Unaudited) |
Investment Income | Tax-Exempt Portfolio |
Income: Interest | $ 11,869,806 |
Expenses: Management fee | 1,158,164 |
Services to shareholders | 1,500,087 |
Administration fee | 2,112,756 |
Custodian fee | 60,820 |
Distribution and service fees | 2,510,599 |
Professional fees | 64,874 |
Trustees' fees and expenses | 54,848 |
Reports to shareholders | 116,869 |
Registration fees | 87,246 |
Temporary guarantee program participation fee | 610,785 |
Other | 120,792 |
Total expenses before expense reductions | 8,397,840 |
Expense reductions | (1,337,257) |
Total expenses after expense reductions | 7,060,583 |
Net investment income | 4,809,223 |
Net realized gain (loss) from investments | 39,386 |
Net increase (decrease) in net assets resulting from operations | $ 4,848,609 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets | Tax-Exempt Portfolio |
Increase (Decrease) in Net Assets | Six Months Ended October 31, 2009 (Unaudited) | Year Ended April 30, 2009 |
Operations: Net investment income | $ 4,809,223 | $ 58,603,310 |
Net realized gain (loss) | 39,386 | 192,457 |
Net increase in net assets resulting from operations | 4,848,609 | 58,795,767 |
Distributions to shareholders from: Net investment income: Capital Assets Funds Shares | (1,062) | (131,190) |
Davidson Cash Equivalent Shares | (4,973) | (719,122) |
DWS Tax-Exempt Cash Institutional Shares | (3,762,832) | (30,748,714) |
DWS Tax-Exempt Money Fund | (812,767) | (8,765,409) |
DWS Tax-Free Money Fund Class S | (231,152) | (2,574,843) |
Premier Money Market Shares | (23,352) | (4,688,219) |
Service Shares | (3,207) | (632,154) |
Tax-Exempt Cash Managed Shares | (147,681) | (2,987,177) |
Tax-Free Investment Class | (175,884) | (7,262,264) |
Total distributions | (5,162,910) | (58,509,092) |
Portfolio share transactions: Proceeds from shares sold | 5,217,128,639 | 9,140,219,601 |
Reinvestment of distributions | 3,947,296 | 48,514,962 |
Cost of shares redeemed | (5,125,123,801) | (9,257,262,435) |
Net increase (decrease) in net assets from Portfolio share transactions | 95,952,134 | (68,527,872) |
Increase (decrease) in net assets | 95,637,833 | (68,241,197) |
Net assets at beginning of period | 3,846,748,330 | 3,914,989,527 |
Net assets at end of period (including undistributed net investment income of $698,315 and $1,052,002, respectively) | $ 3,942,386,163 | $ 3,846,748,330 |
The accompanying notes are an integral part of the financial statements.
Financial Highlights
Tax-Exempt Portfolio
Premier Money Market Shares |
Years Ended April 30, | 2009a | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per Share Data |
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Net investment income | .000*** | .009 | .024 | .027 | .018 | .006 |
Less distributions from net investment income | (.000)*** | (.009) | (.024) | (.027) | (.018) | (.006) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%) | .01b** | .87b | 2.44b | 2.68b | 1.85 | .61 |
Ratios to Average Net Assets and Supplemental Data |
Net assets, end of period ($ millions) | 29 | 491 | 422 | 117 | 119 | 121 |
Ratio of expenses before expense reductions (%) | .95* | .96 | .95 | .96 | .98 | .96 |
Ratio of expenses after expense reductions (%) | .57* | .92 | .94 | .96 | .98 | .96 |
Ratio of net investment income (%) | .01* | .86 | 2.38 | 2.65 | 1.84 | .63 |
a For the six months ended October 31, 2009 (Unaudited). b Total return would have been lower had certain expenses not been reduced. * Annualized ** Not annualized *** Amount is less than $.0005. |
Notes to Financial Statements (Unaudited)
1. Organization and Significant Accounting Policies
Cash Account Trust (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment management company organized as a Massachusetts business trust.
The Trust offers three portfolios: Money Market Portfolio, Government & Agency Securities Portfolio and Tax-Exempt Portfolio (the "Portfolios").
Money Market Portfolio offers eight classes of shares: Capital Assets Funds Shares, Capital Assets Funds Preferred Shares, Davidson Cash Equivalent Shares, Davidson Cash Equivalent Plus Shares, Institutional Money Market Shares, Premier Money Market Shares, Premium Reserve Money Market Shares and Service Shares. The Institutional Select Money Market Shares Class was liquidated on October 27, 2009 and is no longer offered.
Government & Agency Securities Portfolio offers eight classes of shares: Capital Assets Funds Shares, Davidson Cash Equivalent Shares, Davidson Cash Equivalent Plus Shares, DWS Government & Agency Money Fund, DWS Government Cash Institutional Shares, Government Cash Managed Shares, Premier Money Market Shares and Service Shares.
Tax-Exempt Portfolio offers nine classes of shares: Capital Assets Funds Shares, Davidson Cash Equivalent Shares, DWS Tax-Exempt Cash Institutional Shares, DWS Tax-Exempt Money Fund, DWS Tax-Free Money Fund Class S, Premier Money Market Shares, Service Shares, Tax-Exempt Cash Managed Shares and Tax-Free Investment Class.
The financial highlights for all classes of shares, other than Premier Money Market Shares, are provided separately and are available upon request.
Each Portfolio's investment income, realized and unrealized gains and losses, and certain Portfolio-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares of that Portfolio, except that each class bears certain expenses unique to that class such as distribution and service fees, services to shareholders and certain other class-specific expenses. Differences in class-level expenses may result in payment of different per share dividends by class. All shares of the Trust have equal rights with respect to voting subject to class-specific arrangements.
Each Portfolio'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 Portfolios 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 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.
Repurchase Agreements. Each Portfolio may enter into repurchase agreements with certain banks and broker/dealers whereby each Portfolio, through its custodian or sub-custodian bank, receives delivery of the underlying securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the value is equal to at least the principal amount of the repurchase price plus accrued interest. The custodial bank holds the collateral in a separate account until the agreement matures. If the value of the securities falls below the principal amount of the repurchase agreement plus accrued interest, the financial institution deposits additional collateral by the following business day. If the financial institution either fails to deposit the required additional collateral or fails to repurchase the securities as agreed, the Portfolios have the right to sell the securities and recover any resulting loss from the financial institution. If the financial institution enters into bankruptcy, the Portfolios' claims on the collateral may be subject to legal proceedings.
Federal Income Taxes. Each of the Portfolios' policies is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies and to distribute all of its taxable and tax-exempt income to its shareholders.
The Portfolios have reviewed the tax positions for the open tax years as of April 30, 2009 and have determined that no provision for income tax is required in the Portfolios' financial statements. The Portfolios' federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service.
Distribution of Income. Net investment income of each Portfolio is declared as a daily dividend and is distributed to shareholders monthly. Each Portfolio may take into account capital gains and losses in its daily dividend declarations. Each Portfolio may also make additional distributions for tax purposes if necessary.
Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Temporary book and tax basis differences will reverse in a subsequent period. There were no significant book-to-tax differences for the Portfolios.
The tax character of current year distributions will be determined at the end of the current fiscal year.
Expenses. Expenses of the Trust arising in connection with a specific Portfolio are allocated to that Portfolio. Other Trust expenses which cannot be directly attributed to a Portfolio are apportioned pro rata on the basis of relative net assets among the Portfolios in the Trust.
Contingencies. In the normal course of business, the Portfolios may enter into contracts with service providers that contain general indemnification clauses. The Portfolios' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolios that have not yet been made. However, based on experience, the Portfolios expect the risk of loss to be remote.
Other. Investment transactions are accounted for on trade date. Interest income is recorded on the accrual basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. All premiums and discounts are amortized/accreted for both tax and financial reporting purposes.
2. Related Parties
Management Agreement. Under an Investment Management Agreement (with respect to Money Market Portfolio) and an Amended and Restated Investment Management Agreement (with respect to the Government & Agency Securities Portfolio and Tax-Exempt Portfolio) between the Trust and 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 Portfolios in accordance with their respective 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 each Portfolio.
In addition to portfolio management services, the Advisor provides certain administrative services in accordance with the Investment Management Agreement on the Money Market Portfolio. The Money Market Portfolio pays a monthly management fee based on the combined average daily net assets of the Portfolios and allocated to each Portfolio based on relative net assets, computed and accrued daily and payable monthly, at 1/12 of the following annual rates:
First $500 million of the Portfolios' combined average daily net assets | .220% |
Next $500 million of such net assets | .200% |
Next $1 billion of such net assets | .175% |
Next $1 billion of such net assets | .160% |
Over $3 billion of such net assets | .150% |
The Government & Agency Securities Portfolio and Tax-Exempt Portfolio pay a monthly management fee based on the combined average daily net assets of the Portfolios and allocated to each Portfolio based on relative net assets, computed and accrued daily and payable monthly, at the following annual rates:
First $500 million of the Portfolios' combined average daily net assets | .120% |
Next $500 million of such net assets | .100% |
Next $1 billion of such net assets | .075% |
Next $1 billion of such net assets | .060% |
Over $3 billion of such net assets | .050% |
The Advisor has agreed to contractually reduce its management fee for the Government & Agency Securities Portfolio such that the annual effective rate is limited to 0.05% of the Government & Agency Securities Portfolio's average daily net assets.
Accordingly, for the six months ended October 31, 2009, the Advisor waived a portion of its management fee on the Government & Agency Securities Portfolio aggregating $458,937 and the amount charged aggregated $4,706,980.
For the six months ended October 31, 2009, the Portfolios incurred management fees equivalent to the following annualized effective rates of each Portfolio's average daily net assets:
Portfolio | Annualized Effective Rate |
Money Market Portfolio | .15% |
Government & Agency Securities Portfolio | .05% |
Tax-Exempt Portfolio | .06% |
The Advisor also has agreed to maintain expenses of certain other classes of the Trust. These rates are disclosed in the respective share classes' semiannual reports that are provided separately and are available upon request.
In addition, the Advisor has agreed to voluntarily waive additional expenses. The waiver may be changed or terminated at any time without notice. Under these arrangements, the Advisor waived certain expenses on Premier Money Market Shares for Money Market Portfolio, Government & Agency Securities Portfolio and Tax-Exempt Portfolio.
Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to the Government & Agency Securities Portfolio and Tax-Exempt Portfolio. For all services provided under the Administrative Services Agreement, each of these two Portfolios pays the Advisor an annual fee ("Administration Fee") of 0.10% of each of these two Portfolios' average daily net assets, computed and accrued daily and payable monthly. For the six months ended October 31, 2009, the Administration Fee from the Government & Agency Securities Portfolio and the Tax-Exempt Portfolio was as follows:
Portfolio | Administration Fee | Unpaid at October 31, 2009 |
Government & Agency Securities Portfolio | $ 9,414,795 | $ 1,446,396 |
Tax-Exempt Portfolio | $ 2,112,756 | $ 356,796 |
Service Provider Fees. DWS Investments Service Company ("DISC"), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent for the Portfolios. Pursuant to a sub-transfer agency agreement between DISC and DST Systems, Inc. ("DST"), DISC has delegated certain transfer agent, dividend-paying agent and shareholder service agent functions to DST. DISC compensates DST out of the shareholder servicing fee it receives from the Portfolios. For the six months ended October 31, 2009, the amounts charged to the Portfolios by DISC were as follows:
Money Market Portfolio: | Total Aggregated | Waived | Unpaid at October 31, 2009 |
Capital Assets Funds Shares | $ 1,172,100 | $ — | $ 398,621 |
Capital Assets Funds Preferred Shares | 42,898 | — | 15,172 |
Davidson Cash Equivalent Shares | 21,558 | — | 18,274 |
Davidson Cash Equivalent Plus Shares | 3,837 | — | 1,585 |
Institutional Money Market Shares | 1,069 | — | 4,654 |
Institutional Select Money Market Shares | 36 | 36 | — |
Premier Money Market Shares | 2,187,926 | — | 538,295 |
Premium Reserve Money Market Shares | 133,831 | — | 31,701 |
Service Shares | 1,486,871 | — | 436,484 |
Government & Agency Securities Portfolio: | Total Aggregated | Waived | Unpaid at October 31, 2009 |
Capital Assets Funds Shares | $ 381,859 | $ 109,687 | $ 53,793 |
Davidson Cash Equivalent Shares | 29,524 | 5,563 | 11,517 |
Davidson Cash Equivalent Plus Shares | 28,276 | 7,990 | 7,505 |
DWS Government & Agency Money Fund | 138,647 | 4,100 | 52,409 |
DWS Government Cash Institutional Shares | 156,821 | — | 18,874 |
Government Cash Managed Shares | 172,081 | — | 68,865 |
Premier Money Market Shares | 3,773,428 | 506,479 | 259,601 |
Service Shares | 172,395 | 47,437 | 22,400 |
Tax-Exempt Portfolio: | Total Aggregated | Waived | Unpaid at October 31, 2009 |
Capital Assets Funds Shares | $ 26,071 | $ — | $ 7,990 |
Davidson Cash Equivalent Shares | 53,582 | — | 18,335 |
DWS Tax-Exempt Cash Institutional Shares | 197,730 | 6,142 | 107,822 |
DWS Tax-Exempt Money Fund | 92,615 | — | 28,810 |
DWS Tax-Free Money Fund Class S | 59,317 | — | 12,913 |
Premier Money Market Shares | 516,482 | — | 138,141 |
Service Shares | 80,662 | — | 21,294 |
Tax-Exempt Cash Managed Shares | 124,628 | — | 61,788 |
Tax-Free Investment Class | 171,104 | — | 64,975 |
Distribution Service Agreement. Under the Distribution Service Agreement, in accordance with Rule 12b-1 under the 1940 Act, DWS Investments Distributors, Inc. ("DIDI"), an affiliate of the Advisor, receives a fee ("Distribution Fee"), calculated as a percentage of average daily net assets for the shares listed in the following table.
For the six months ended October 31, 2009, the Distribution Fee was as follows:
Money Market Portfolio: | Distribution Fee | Waived | Unpaid at October 31, 2009 | Annualized Effective Rate | Contractual Rate (Up To) |
Capital Assets Funds Shares | $ 1,547,202 | $ 1,547,202 | $ — | .00% | .33% |
Capital Assets Funds Preferred Shares | 57,197 | 45,547 | — | .04% | .20% |
Davidson Cash Equivalent Shares | 39,319 | 39,319 | — | .00% | .30% |
Davidson Cash Equivalent Plus Shares | 4,746 | 4,746 | — | .00% | .25% |
Institutional Money Market Shares | — | — | — | .00% | .08% |
Premier Money Market Shares | 2,163,259 | 2,163,259 | — | .00% | .25% |
Service Shares | 3,555,810 | 3,187,069 | — | .06% | .60% |
Government & Agency Securities Portfolio: | Distribution Fee | Waived | Unpaid at October 31, 2009 | Annualized Effective Rate | Contractual Rate (Up To) |
Capital Assets Funds Shares | $ 503,490 | $ 503,490 | $ — | .00% | .33% |
Davidson Cash Equivalent Shares | 40,260 | 40,260 | — | .00% | .30% |
Davidson Cash Equivalent Plus Shares | 29,195 | 29,195 | — | .00% | .25% |
Premier Money Market Shares | 4,257,523 | 4,257,523 | — | .00% | .25% |
Service Shares | 409,400 | 409,400 | — | .00% | .60% |
Tax-Exempt Portfolio: | Distribution Fee | Waived | Unpaid at October 31, 2009 | Annualized Effective Rate | Contractual Rate (Up To) |
Capital Assets Funds Shares | $ 34,281 | $ 34,281 | $ — | .00% | .33% |
Davidson Cash Equivalent Shares | 107,164 | 107,164 | — | .00% | .30% |
Premier Money Market Shares | 512,571 | 512,571 | — | .00% | .25% |
Service Shares | 192,878 | 158,788 | — | .11% | .60% |
Tax-Free Investment Class | 658,469 | 211,274 | 20,986 | .17% | .25% |
In addition, DIDI provides information and administrative services for a fee ("Service Fee") for the shares listed in the following table. A portion of these fees may be paid pursuant to a Rule 12b-1 plan.
For the six months ended October 31, 2009, the Service Fee was as follows:
Money Market Portfolio: | Service Fee | Waived | Unpaid at October 31, 2009 | Annualized Effective Rate | Contractual Rate (Up To) |
Capital Assets Funds Shares | $ 1,172,100 | $ 980,858 | $ — | .04% | .25% |
Capital Assets Funds Preferred Shares | 28,598 | — | 5,260 | .10% | .10% |
Davidson Cash Equivalent Shares | 32,766 | 11,877 | 788 | .16% | .25% |
Davidson Cash Equivalent Plus Shares | 3,797 | 1,473 | 44 | .12% | .20% |
Institutional Money Market Shares | 44,778 | — | 951 | .02% | .08% |
Premier Money Market Shares | 2,163,365 | 1,507,849 | — | .08% | .25% |
Premium Reserve Money Market Shares | 402,493 | 92,554 | 18,995 | .19% | .25% |
Government & Agency Securities Portfolio: | Service Fee | Waived | Unpaid at October 31, 2009 | Annualized Effective Rate | Contractual Rate (Up To) |
Capital Assets Funds Shares | $ 381,515 | $ 381,515 | $ — | .00% | .25% |
Davidson Cash Equivalent Shares | 33,550 | 33,550 | — | .00% | .25% |
Davidson Cash Equivalent Plus Shares | 23,356 | 23,356 | — | .00% | .20% |
Government Cash Managed Shares | 268,120 | 128,260 | 2,321 | .08% | .15% |
Premier Money Market Shares | 4,257,713 | 4,257,713 | — | .00% | .25% |
Tax-Exempt Portfolio: | Service Fee | Waived | Unpaid at October 31, 2009 | Annualized Effective Rate | Contractual Rate (Up To) |
Capital Assets Funds Shares | $ 25,971 | $ 13,651 | $ — | .12% | .25% |
Davidson Cash Equivalent Shares | 89,304 | 19,016 | 3,897 | .20% | .25% |
Premier Money Market Shares | 512,571 | 261,650 | — | .12% | .25% |
Tax-Exempt Cash Managed Shares | 193,019 | 12,720 | 27,680 | .14% | .15% |
Tax-Free Investment Class | 184,371 | — | 29,740 | .07% | .25% |
Typesetting and Filing Service Fees. Under an agreement with DIMA, DIMA is compensated for providing typesetting and certain regulatory filing services to the Portfolios. For the six months ended October 31, 2009, the amounts charged to the Portfolios by DIMA included in the Statement of Operations under "reports to shareholders" were as follows:
Portfolio | Total Aggregated | Unpaid at October 31, 2009 |
Money Market Portfolio | $ 37,104 | $ 6,273 |
Government & Agency Securities Portfolio | $ 34,593 | $ 12,887 |
Tax-Exempt Portfolio | $ 52,735 | $ 26,327 |
Trustees' Fees and Expenses. The Portfolios paid each Trustee not affiliated with the Advisor retainer fees plus specified amounts for various committee services and for the Board Chairperson.
3. Line of Credit
The Portfolios and other affiliated funds (the "Participants") share in a $450 million revolving credit facility provided by a syndication of banks. Each Portfolio may borrow 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 on net assets, among each of the Participants. Interest is calculated at a rate per annum equal to the sum of the Federal Funds Rate plus 1.25 percent plus if LIBOR exceeds the Federal Funds Rate the amount of such excess. Each Portfolio may borrow up to a maximum of 33 percent of its net assets under the agreement.
4. Share Transactions
The following table summarizes share and dollar activity in the Portfolios:
Money Market Portfolio
| Six Months Ended
October 31, 2009 | Year Ended
April 30, 2009 |
| Shares | Dollars | Shares | Dollars |
Shares sold |
Capital Assets Funds Shares | 363,261,775 | $ 363,261,775 | 756,323,913 | $ 756,323,913 |
Capital Assets Funds Preferred Shares | 26,219,188 | 26,219,188 | 96,644,444 | 96,644,444 |
Davidson Cash Equivalent Shares | 2,393,976 | 2,393,976 | 6,293,816 | 6,293,816 |
Davidson Cash Equivalent Plus Shares | 746,182 | 746,182 | 6,577,884 | 6,577,884 |
Institutional Money Market Shares | 878,755,571 | 878,755,571 | 2,007,881,776 | 2,007,881,776 |
Institutional Select Money Market Shares | — | — | 1 | 1 |
Premier Money Market Shares | 460,552,148 | 460,552,148 | 2,189,467,703 | 2,189,467,703 |
Premium Reserve Money Market Shares | 135,831,108 | 135,831,108 | 717,047,245 | 717,047,245 |
Service Shares | 617,262,629 | 617,262,629 | 1,541,551,203 | 1,541,551,203 |
| | $ 2,485,022,577 | | $ 7,321,787,985 |
Shares issued to shareholders in reinvestment of distributions |
Capital Assets Funds Shares | 279,232 | $ 279,232 | 12,130,033 | $ 12,130,033 |
Capital Assets Funds Preferred Shares | 15,618 | 15,618 | 1,195,269 | 1,195,269 |
Davidson Cash Equivalent Shares | 4,330 | 4,330 | 576,062 | 576,062 |
Davidson Cash Equivalent Plus Shares | 624 | 624 | 117,206 | 117,206 |
Institutional Money Market Shares | 781,118 | 781,118 | 2,692,452 | 2,692,452 |
Institutional Select Money Market Shares | 17 | 17 | 207 | 207 |
Premier Money Market Shares | 243,824 | 243,824 | 24,504,141 | 24,504,141 |
Premium Reserve Money Market Shares | 130,660 | 130,660 | 6,580,302 | 6,580,302 |
Service Shares | 206,269 | 206,269 | 13,634,712 | 13,634,712 |
| | $ 1,661,692 | | $ 61,430,384 |
Shares redeemed |
Capital Assets Funds Shares | (341,426,965) | $ (341,426,965) | (905,900,056) | $ (905,900,056) |
Capital Assets Funds Preferred Shares | (14,413,230) | (14,413,230) | (123,589,990) | (123,589,990) |
Davidson Cash Equivalent Shares | (8,869,670) | (8,869,670) | (36,566,566) | (36,566,566) |
Davidson Cash Equivalent Plus Shares | (2,214,536) | (2,214,536) | (13,483,561) | (13,483,561) |
Institutional Money Market Shares | (1,392,140,582) | (1,392,140,582) | (1,625,470,563) | (1,625,470,563) |
Institutional Select Money Market Shares | (10,576) | (10,576) | — | — |
Premier Money Market Shares | (2,337,809,410) | (2,337,809,410) | (2,094,278,190) | (2,094,278,190) |
Premium Reserve Money Market Shares | (461,957,812) | (461,957,812) | (716,277,240) | (716,277,240) |
Service Shares | (564,193,796) | (564,193,796) | (1,668,466,504) | (1,668,466,504) |
| | $ (5,123,036,577) | | $ (7,184,032,670) |
Net increase (decrease) |
Capital Assets Funds Shares | 22,114,042 | $ 22,114,042 | (137,446,110) | $ (137,446,110) |
Capital Assets Funds Preferred Shares | 11,821,576 | 11,821,576 | (25,750,277) | (25,750,277) |
Davidson Cash Equivalent Shares | (6,471,364) | (6,471,364) | (29,696,688) | (29,696,688) |
Davidson Cash Equivalent Plus Shares | (1,467,730) | (1,467,730) | (6,788,471) | (6,788,471) |
Institutional Money Market Shares | (512,603,893) | (512,603,893) | 385,103,665 | 385,103,665 |
Institutional Select Money Market Shares | (10,559) | (10,559) | 208 | 208 |
Premier Money Market Shares | (1,877,013,438) | (1,877,013,438) | 119,693,654 | 119,693,654 |
Premium Reserve Money Market Shares | (325,996,044) | (325,996,044) | 7,350,307 | 7,350,307 |
Service Shares | 53,275,102 | 53,275,102 | (113,280,589) | (113,280,589) |
| | $ (2,636,352,308) | | $ 199,185,699 |
Government & Agency Securities Portfolio
| Six Months Ended
October 31, 2009 | Year Ended
April 30, 2009 |
| Shares | Dollars | Shares | Dollars |
Shares sold |
Capital Assets Funds Shares | 323,922,137 | $ 323,922,137 | 681,683,695 | $ 681,683,695 |
Davidson Cash Equivalent Shares | 7,649,196 | 7,649,196 | 17,323,178 | 17,323,178 |
Davidson Cash Equivalent Plus Shares | 70,398,471 | 70,398,471 | 119,369,805 | 119,369,805 |
DWS Government & Agency Money Fund | 57,106,781 | 57,106,781 | 225,363,477 | 225,363,477 |
DWS Government Cash Institutional Shares | 40,395,843,073 | 40,395,843,073 | 52,360,583,911 | 52,360,583,911 |
Government Cash Managed Shares | 383,789,400 | 383,789,400 | 1,094,974,655 | 1,094,974,655 |
Premier Money Market Shares | 253,651,239 | 253,651,239 | 2,888,567,400 | 2,888,567,400 |
Service Shares | 105,462,007 | 105,462,007 | 685,949,496 | 685,949,496 |
| | $ 41,597,822,304 | | $ 58,073,815,617 |
Shares issued to shareholders in reinvestment of distributions |
Capital Assets Funds Shares | 37,462 | $ 37,462 | 1,539,074 | $ 1,539,074 |
Davidson Cash Equivalent Shares | 3,213 | 3,213 | 260,593 | 260,593 |
Davidson Cash Equivalent Plus Shares | 2,659 | 2,659 | 256,560 | 256,560 |
DWS Government & Agency Money Fund | 169,522 | 169,522 | 5,481,030 | 5,481,030 |
DWS Government Cash Institutional Shares | 6,492,137 | 6,492,137 | 37,575,969 | 37,575,969 |
Government Cash Managed Shares | 4,508 | 4,508 | 452,853 | 452,853 |
Premier Money Market Shares | 336,811 | 336,811 | 26,611,609 | 26,611,609 |
Service Shares | 16,386 | 16,386 | 1,040,577 | 1,040,577 |
| | $ 7,062,698 | | $ 73,218,265 |
Shares redeemed |
Capital Assets Funds Shares | (298,996,139) | $ (298,996,139) | (602,594,057) | $ (602,594,057) |
Davidson Cash Equivalent Shares | (12,907,008) | (12,907,008) | (28,211,841) | (28,211,841) |
Davidson Cash Equivalent Plus Shares | (54,143,604) | (54,143,604) | (127,331,307) | (127,331,307) |
DWS Government & Agency Money Fund | (98,419,138) | (98,419,138) | (344,085,420) | (344,085,420) |
DWS Government Cash Institutional Shares | (41,151,527,047) | (41,151,527,047) | (38,908,807,396) | (38,908,807,396) |
Government Cash Managed Shares | (542,636,563) | (542,636,563) | (997,447,690) | (997,447,690) |
Premier Money Market Shares | (4,328,707,953) | (4,328,707,953) | (1,749,330,723) | (1,749,330,723) |
Service Shares | (135,615,952) | (135,615,952) | (635,164,118) | (635,164,118) |
| | $ (46,622,953,404) | | $ (43,392,972,552) |
Net increase (decrease) |
Capital Assets Funds Shares | 24,963,460 | $ 24,963,460 | 80,628,712 | $ 80,628,712 |
Davidson Cash Equivalent Shares | (5,254,599) | (5,254,599) | (10,628,070) | (10,628,070) |
Davidson Cash Equivalent Plus Shares | 16,257,526 | 16,257,526 | (7,704,942) | (7,704,942) |
DWS Government & Agency Money Fund | (41,142,835) | (41,142,835) | (113,240,913) | (113,240,913) |
DWS Government Cash Institutional Shares | (749,191,837) | (749,191,837) | 13,489,352,484 | 13,489,352,484 |
Government Cash Managed Shares | (158,842,655) | (158,842,655) | 97,979,818 | 97,979,818 |
Premier Money Market Shares | (4,074,719,903) | (4,074,719,903) | 1,165,848,286 | 1,165,848,286 |
Service Shares | (30,137,559) | (30,137,559) | 51,825,955 | 51,825,955 |
| | $ (5,018,068,402) | | $ 14,754,061,330 |
Tax-Exempt Portfolio
| Six Months Ended
October 31, 2009 | Year Ended
April 30, 2009 |
| Shares | Dollars | Shares | Dollars |
Shares sold |
Capital Assets Funds Shares | 28,662,744 | $ 28,662,744 | 79,493,892 | $ 79,493,892 |
Davidson Cash Equivalent Shares | 69,569,602 | 69,569,602 | 151,063,774 | 151,063,774 |
DWS Tax-Exempt Cash Institutional Shares | 4,183,780,623 | 4,183,780,623 | 6,186,309,066 | 6,186,309,066 |
DWS Tax-Exempt Money Fund | 96,893,389 | 96,893,389 | 338,176,298 | 338,176,298 |
DWS Tax-Free Money Fund Class S | 18,437,802 | 18,437,802 | 84,159,884 | 84,159,884 |
Premier Money Market Shares | 93,467,834 | 93,467,834 | 660,659,717 | 660,659,717 |
Service Shares | 188,657,496 | 188,657,496 | 290,159,727 | 290,159,727 |
Tax-Exempt Cash Managed Shares | 307,122,302 | 307,122,302 | 424,013,253 | 424,013,253 |
Tax-Free Investment Class | 230,536,847 | 230,536,847 | 926,183,990 | 926,183,990 |
| | $ 5,217,128,639 | | $ 9,140,219,601 |
Shares issued to shareholders in reinvestment of distributions |
Capital Assets Funds Shares | 1,068 | $ 1,068 | 131,190 | $ 131,190 |
Davidson Cash Equivalent Shares | 4,994 | 4,994 | 719,122 | 719,122 |
DWS Tax-Exempt Cash Institutional Shares | 2,726,893 | 2,726,893 | 24,227,076 | 24,227,076 |
DWS Tax-Exempt Money Fund | 800,177 | 800,177 | 8,598,632 | 8,598,632 |
DWS Tax-Free Money Fund Class S | 216,372 | 216,372 | 2,354,231 | 2,354,231 |
Premier Money Market Shares | 21,598 | 21,598 | 4,686,316 | 4,686,316 |
Service Shares | 3,224 | 3,224 | 631,996 | 631,996 |
Tax-Exempt Cash Managed Shares | 824 | 824 | 7,108 | 7,108 |
Tax-Free Investment Class | 172,146 | 172,146 | 7,159,291 | 7,159,291 |
| | $ 3,947,296 | | $ 48,514,962 |
Shares redeemed |
Capital Assets Funds Shares | (33,617,769) | $ (33,617,769) | (70,653,607) | $ (70,653,607) |
Davidson Cash Equivalent Shares | (60,688,543) | (60,688,543) | (159,294,305) | (159,294,305) |
DWS Tax-Exempt Cash Institutional Shares | (3,558,920,798) | (3,558,920,798) | (6,191,135,664) | (6,191,135,664) |
DWS Tax-Exempt Money Fund | (127,988,624) | (127,988,624) | (429,364,999) | (429,364,999) |
DWS Tax-Free Money Fund Class S | (35,672,052) | (35,672,052) | (89,363,582) | (89,363,582) |
Premier Money Market Shares | (555,392,961) | (555,392,961) | (595,742,429) | (595,742,429) |
Service Shares | (191,511,694) | (191,511,694) | (305,003,326) | (305,003,326) |
Tax-Exempt Cash Managed Shares | (244,620,655) | (244,620,655) | (481,653,287) | (481,653,287) |
Tax-Free Investment Class | (316,710,705) | (316,710,705) | (935,051,236) | (935,051,236) |
| | $ (5,125,123,801) | | $ (9,257,262,435) |
Net increase (decrease) |
Capital Assets Funds Shares | (4,953,957) | $ (4,953,957) | 8,971,475 | $ 8,971,475 |
Davidson Cash Equivalent Shares | 8,886,053 | 8,886,053 | (7,511,409) | (7,511,409) |
DWS Tax-Exempt Cash Institutional Shares | 627,586,718 | 627,586,718 | 19,400,478 | 19,400,478 |
DWS Tax-Exempt Money Fund | (30,295,058) | (30,295,058) | (82,590,069) | (82,590,069) |
DWS Tax-Free Money Fund Class S | (17,017,878) | (17,017,878) | (2,849,467) | (2,849,467) |
Premier Money Market Shares | (461,903,529) | (461,903,529) | 69,603,604 | 69,603,604 |
Service Shares | (2,850,974) | (2,850,974) | (14,211,603) | (14,211,603) |
Tax-Exempt Cash Managed Shares | 62,502,471 | 62,502,471 | (57,632,926) | (57,632,926) |
Tax-Free Investment Class | (86,001,712) | (86,001,712) | (1,707,955) | (1,707,955) |
| | $ 95,952,134 | | $ (68,527,872) |
5. Participation in the Treasury's Temporary Guarantee Program
The Portfolios participated in the Temporary Guarantee Program for Money Market Funds (the "Program") established by the U.S. Department of the Treasury (the "Treasury"). The Program was terminated on September 18, 2009.
Each Portfolio paid the expenses of participating in the Program. The expense was determined by the product of (i) the number of shares outstanding of each class as of September 19, 2008 valued at $1.00; and (ii) the applicable Program participation fee rate, which was based upon the market-based net asset value outstanding of each share class as of September 19, 2008. For the initial period ending December 18, 2008, the Program participation fee was equal to 0.010%. For the coverage under the Program beginning on December 19, 2008 and ending on April 30, 2009, the Program participation fee was equal to 0.015%. For the coverage under the Program beginning on May 1, 2009 and ending September 18, 2009, the Program participation fee was equal to 0.015%. This expense was amortized over the length of the participation in the Program and is included in "Temporary guarantee program participation fee" on the Statement of Operations. For the period from May 1, 2009 through September 18, 2009, Money Market Portfolio accrued $707,640, Government & Agency Securities Portfolio accrued $1,862,809 and Tax-Exempt Portfolio accrued $610,785. This expense was borne by the Portfolios without regard to any expense limitation currently in effect for the Portfolios.
Neither the Portfolios nor Deutsche Investment Management Americas Inc., the Portfolios' investment advisor, are in any manner approved, endorsed, sponsored or authorized by the Treasury.
6. Review for Subsequent Events
Management has reviewed the events and transactions from November 1, 2009 through December 22, 2009, the date the financial statements were available to be issued for subsequent events. Effective on or about February 16, 2010, the Board of Trustees has approved the termination and liquidation of the Institutional Money Market Shares class of the Money Market Portfolio and the Premier Money Market Shares class of the Government & Agency Securities Portfolio. Aside from the termination and liquidation of classes, there were no material events that would require disclosure in the Portfolios' financial statements through this date.
Investment Management Agreement Approval
Money Market Portfolio
The Board of Trustees, including the Independent Trustees, approved the renewal of your Fund's investment management agreement (the "Agreement") with Deutsche Investment Management Americas Inc. ("DWS") in September 2009.
In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:
• In September 2009, all but one of the Fund's Trustees were independent of DWS and its affiliates.
• The Trustees meet frequently to discuss fund matters. Each year, the Trustees dedicate substantial time to contract review matters. Over the course of several months, the Board's Contract Committee, in coordination with the Board's Fixed Income and Quant Oversight Committee, reviewed comprehensive materials received from DWS, independent third parties and independent counsel. These materials included an analysis of the Fund's performance, fees and expenses and profitability compiled by the Fund's independent fee consultant. The Board also received extensive information throughout the year regarding performance of the Fund.
• The Independent Trustees regularly meet privately with their independent counsel to discuss contract review and other matters. In addition, the Independent Trustees were also advised by the Fund's independent fee consultant in the course of their review of the Fund's contractual arrangements and considered a comprehensive report prepared by the independent fee consultant in connection with their deliberations (the "IFC Report").
• In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund's Rule 12b-1 plan, distribution agreement, transfer agency agreement and other material service agreements.
• Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Independent Trustees as a group. The Independent Trustees reviewed the Contract Committee's findings and recommendations and presented their recommendations to the full Board.
In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DWS and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered, generally, that shareholders chose to invest or remain invested in the Fund knowing that DWS managed the Fund. DWS is part of Deutsche Bank, a major global banking institution that is engaged in a wide range of financial services. The Board believes that there are significant advantages to being part of a global asset management business that offers a wide range of investing expertise and resources, including hundreds of portfolio managers and analysts with research capabilities in many countries throughout the world.
While shareholders may focus primarily on fund performance and fees, the Fund's Board considers these and many other factors, including the quality and integrity of DWS's personnel and such other issues as back-office operations, fund valuations, and compliance policies and procedures.
Nature, Quality and Extent of Services. The Board considered the terms of the Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DWS provides portfolio management services and administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel, the resources made available to such personnel, the ability of DWS to attract and retain high-quality personnel and the organizational depth and stability of DWS. The Board reviewed the Fund's performance over short-term and long-term periods and compared those returns to various agreed-upon performance measures, including a peer universe compiled by the independent fee consultant using information supplied by iMoneyNet Inc. ("iMoneyNet"). The Board also noted that it has put into place a process of identifying "Focus Funds" (e.g., funds performing poorly relative to their benchmark or a peer universe compiled by iMoneyNet), and receives more frequent reporting and information from DWS regarding such funds, along with DWS's remedial plans to address underperformance. The Board believes this process is an effective manner of identifying and addressing underperforming funds. Based on the information provided, the Board noted that for the one- and three-year periods ended December 31, 2008, the Fund's gross performance (Premier Money Market Shares) was in the 2nd quartile of the applicable iMoneyNet universe (the 1st quartile being the best performers and the 4th quartile being the worst performers).
On the basis of this evaluation and the ongoing review of investment results by the Board, the Board concluded that the nature, quality and extent of services provided by DWS historically have been and continue to be satisfactory.
Fees and Expenses. The Board considered the Fund's investment management fee schedule, operating expenses, and total expense ratios, and comparative information provided by Lipper Inc. ("Lipper") and the independent fee consultant regarding investment management fee rates paid to other investment advisors by similar funds (1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates paid by the Fund were lower than the median (1st quartile) of the applicable Lipper peer group (based on Lipper data provided as of December 31, 2008). The Board also reviewed data comparing each share class's total (net) operating expenses to the applicable Lipper expense universe. The Board also noted that the expense limitations agreed to by DWS helped to ensure that the Fund's total (net) operating expenses would remain competitive.
The information considered by the Board as part of their review of management fees included information regarding fees charged by DWS and its affiliates to similar institutional accounts and to similar funds managed by the same portfolio management teams but offered primarily to European investors ("DWS Europe funds"), in each case as applicable. The Board observed that advisory fee rates for institutional accounts generally were lower than the management fees charged by similarly managed DWS US Mutual Funds ("DWS Funds"), but also took note of the differences in services provided to DWS Funds as compared to institutional accounts. In the case of DWS Europe funds, the Board observed that fee rates for DWS Europe funds generally were higher than for similarly managed DWS Funds, but noted that differences in the types of services provided to DWS Funds relative to DWS Europe funds made it difficult to compare such fees.
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DWS.
Profitability. The Board reviewed detailed information regarding revenues received by DWS under the Agreement. The Board considered the estimated costs and pre-tax profits realized by DWS from advising the DWS Funds, as well as estimates of the pre-tax profits attributable to managing the Fund in particular. The Board also received information regarding the estimated enterprise-wide profitability of DWS and its affiliates with respect to all fund services in totality and by fund. The Board reviewed DWS's methodology in allocating its costs to the management of the Fund. Based on the information provided, the Board concluded that the pre-tax profits realized by DWS in connection with the management of the Fund were not unreasonable. 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 (and in some cases is not necessarily prepared on a comparable basis), DWS and its affiliates' overall profitability with respect to the DWS fund complex (after taking into account distribution and other services provided to the funds by DWS and its affiliates) was lower than the overall profitability levels of many comparable firms for which such data was available.
Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Fund and whether the Fund benefits from any economies of scale. The Board noted that the Fund's management fee schedule includes fee breakpoints. The Board concluded that the Fund's fee schedule represents an appropriate sharing between the Fund and DWS of such economies of scale as may exist in the management of the Fund at current asset levels.
Other Benefits to DWS and Its Affiliates. The Board also considered the character and amount of other incidental benefits received by DWS and its affiliates, including any fees received by an affiliate of DWS for distribution services. The Board also considered benefits to DWS related to brokerage and soft-dollar allocations, including allocating brokerage to pay for research generated by parties other than the executing broker dealers, which pertain primarily to funds investing in equity securities, along with the incidental public relations benefits to DWS related to DWS Funds advertising and cross-selling opportunities among DWS products and services. The Board concluded that management fees were reasonable in light of these fallout benefits.
Compliance. The Board considered the significant attention and resources dedicated by DWS to documenting and enhancing its compliance processes in recent years. The Board noted in particular (i) the experience and seniority of both DWS's chief compliance officer and the Fund's chief compliance officer; (ii) the large number of DWS compliance personnel; and (iii) the substantial commitment of resources by DWS and its affiliates to compliance matters.
Based on all of the information considered and the conclusions reached, the Board unanimously (including the Independent Trustees) determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Trustees and their counsel present. It is possible that individual Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.
Government & Agency Securities Portfolio
The Board of Trustees, including the Independent Trustees, approved the renewal of your Fund's investment management agreement (the "Agreement") with Deutsche Investment Management Americas Inc. ("DWS") in September 2009.
In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:
• In September 2009, all but one of the Fund's Trustees were independent of DWS and its affiliates.
• The Trustees meet frequently to discuss fund matters. Each year, the Trustees dedicate substantial time to contract review matters. Over the course of several months, the Board's Contract Committee, in coordination with the Board's Fixed Income and Quant Oversight Committee, reviewed comprehensive materials received from DWS, independent third parties and independent counsel. These materials included an analysis of the Fund's performance, fees and expenses and profitability compiled by the Fund's independent fee consultant. The Board also received extensive information throughout the year regarding performance of the Fund.
• The Independent Trustees regularly meet privately with their independent counsel to discuss contract review and other matters. In addition, the Independent Trustees were also advised by the Fund's independent fee consultant in the course of their review of the Fund's contractual arrangements and considered a comprehensive report prepared by the independent fee consultant in connection with their deliberations (the "IFC Report").
• In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund's Rule 12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements.
• Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Independent Trustees as a group. The Independent Trustees reviewed the Contract Committee's findings and recommendations and presented their recommendations to the full Board.
In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DWS and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered, generally, that shareholders chose to invest or remain invested in the Fund knowing that DWS managed the Fund, and that the Agreement was approved by the Fund's shareholders. DWS is part of Deutsche Bank, a major global banking institution that is engaged in a wide range of financial services. The Board believes that there are significant advantages to being part of a global asset management business that offers a wide range of investing expertise and resources, including hundreds of portfolio managers and analysts with research capabilities in many countries throughout the world.
While shareholders may focus primarily on fund performance and fees, the Fund's Board considers these and many other factors, including the quality and integrity of DWS's personnel and such other issues as back-office operations, fund valuations and compliance policies and procedures.
Nature, Quality and Extent of Services. The Board considered the terms of the Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DWS provides portfolio management services to the Fund and that, pursuant to a separate administrative services agreement, DWS provides administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel, the resources made available to such personnel, the ability of DWS to attract and retain high-quality personnel, and the organizational depth and stability of DWS. The Board reviewed the Fund's performance over short-term and long-term periods and compared those returns to various agreed-upon performance measures, including a peer universe compiled by the independent fee consultant using information supplied by iMoneyNet Inc. ("iMoneyNet"). The Board also noted that it has put a process into place of identifying "Focus Funds" (e.g., funds performing poorly relative to their benchmark or a peer universe compiled by iMoneyNet), and receives more frequent reporting and information from DWS regarding such funds, along with DWS's remedial plans to address underperformance. The Board believes this process is an effective manner of identifying and addressing underperforming funds. Based on the information provided, the Board noted that for the one- and three-year periods ended December 31, 2008, the Fund's gross performance (Premier Money Market Shares) was in the 2nd quartile and 1st quartile, respectively, of the applicable iMoneyNet universe (the 1st quartile being the best performers and the 4th quartile being the worst performers).
On the basis of this evaluation and the ongoing review of investment results by the Board, the Board concluded that the nature, quality and extent of services provided by DWS historically have been and continue to be satisfactory.
Fees and Expenses. The Board considered the Fund's investment management fee schedule, operating expenses, and total expense ratios, and comparative information provided by Lipper Inc. ("Lipper") and the independent fee consultant regarding investment management fee rates paid to other investment advisors by similar funds (1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates paid by the Fund, which include the 0.10% fee paid to DWS under the Fund's administrative services agreement, were lower than the median (2nd quartile) of the applicable Lipper peer group (based on Lipper data provided as of December 31, 2008). The Board also reviewed data comparing each share class's total (net) operating expenses to the applicable Lipper expense universe. The Board also noted that the expense limitations agreed to by DWS helped to ensure that the Fund's total (net) operating expenses would remain competitive.
The information considered by the Board as part of their review of management fees included information regarding fees charged by DWS and its affiliates to similar institutional accounts and to similar funds managed by the same portfolio management teams but offered primarily to European investors ("DWS Europe funds"), in each case as applicable. The Board observed that advisory fee rates for institutional accounts generally were lower than the management fees charged by similarly managed DWS US Mutual Funds ("DWS Funds"), but also took note of the differences in services provided to DWS Funds as compared to institutional accounts. In the case of DWS Europe funds, the Board observed that fee rates for DWS Europe funds generally were higher than for similarly managed DWS Funds, but noted that differences in the types of services provided to DWS Funds relative to DWS Europe funds made it difficult to compare such fees.
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DWS.
Profitability. The Board reviewed detailed information regarding revenues received by DWS under the Agreement. The Board considered the estimated costs and pre-tax profits realized by DWS from advising the DWS Funds, as well as estimates of the pre-tax profits attributable to managing the Fund in particular. The Board also received information regarding the estimated enterprise-wide profitability of DWS and its affiliates with respect to all fund services in totality and by fund. The Board reviewed DWS's methodology in allocating its costs to the management of the Fund. Based on the information provided, the Board concluded that the pre-tax profits realized by DWS in connection with the management of the Fund were not unreasonable. 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 (and in some cases is not necessarily prepared on a comparable basis), DWS and its affiliates' overall profitability with respect to the DWS fund complex (after taking into account distribution and other services provided to the funds by DWS and its affiliates) was lower than the overall profitability levels of many comparable firms for which such data was available.
Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Fund and whether the Fund benefits from any economies of scale. The Board noted that the Fund's management fee schedule includes fee breakpoints. The Board concluded that the Fund's fee schedule represents an appropriate sharing between the Fund and DWS of such economies of scale as may exist in the management of the Fund at current asset levels.
Other Benefits to DWS and Its Affiliates. The Board also considered the character and amount of other incidental benefits received by DWS and its affiliates, including any fees received by DWS for administrative services provided to the Fund and any fees received by an affiliate of DWS for distribution services. The Board also considered benefits to DWS related to brokerage and soft-dollar allocations, including allocating brokerage to pay for research generated by parties other than the executing broker dealers, which pertain primarily to funds investing in equity securities, along with the incidental public relations benefits to DWS related to DWS Funds advertising and cross-selling opportunities among DWS products and services. The Board concluded that management fees were reasonable in light of these fallout benefits.
Compliance. The Board considered the significant attention and resources dedicated by DWS to documenting and enhancing its compliance processes in recent years. The Board noted in particular (i) the experience and seniority of both DWS's chief compliance officer and the Fund's chief compliance officer; (ii) the large number of DWS compliance personnel; and (iii) the substantial commitment of resources by DWS and its affiliates to compliance matters.
Based on all of the information considered and the conclusions reached, the Board unanimously (including the Independent Trustees) determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Trustees and their counsel present. It is possible that individual Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.
Tax-Exempt Portfolio
The Board of Trustees, including the Independent Trustees, approved the renewal of your Fund's investment management agreement (the "Agreement") with Deutsche Investment Management Americas Inc. ("DWS") in September 2009.
In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:
• In September 2009, all but one of the Fund's Trustees were independent of DWS and its affiliates.
• The Trustees meet frequently to discuss fund matters. Each year, the Trustees dedicate substantial time to contract review matters. Over the course of several months, the Board's Contract Committee, in coordination with the Board's Fixed Income and Quant Oversight Committee, reviewed comprehensive materials received from DWS, independent third parties and independent counsel. These materials included an analysis of the Fund's performance, fees and expenses and profitability compiled by the Fund's independent fee consultant. The Board also received extensive information throughout the year regarding performance of the Fund.
• The Independent Trustees regularly meet privately with their independent counsel to discuss contract review and other matters. In addition, the Independent Trustees were also advised by the Fund's independent fee consultant in the course of their review of the Fund's contractual arrangements and considered a comprehensive report prepared by the independent fee consultant in connection with their deliberations (the "IFC Report").
• In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund's Rule 12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements.
• Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Independent Trustees as a group. The Independent Trustees reviewed the Contract Committee's findings and recommendations and presented their recommendations to the full Board.
In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DWS and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered, generally, that shareholders chose to invest or remain invested in the Fund knowing that DWS managed the Fund, and that the Agreement was approved by the Fund's shareholders. DWS is part of Deutsche Bank, a major global banking institution that is engaged in a wide range of financial services. The Board believes that there are significant advantages to being part of a global asset management business that offers a wide range of investing expertise and resources, including hundreds of portfolio managers and analysts with research capabilities in many countries throughout the world.
While shareholders may focus primarily on fund performance and fees, the Fund's Board considers these and many other factors, including the quality and integrity of DWS's personnel and such other issues as back-office operations, fund valuations and compliance policies and procedures.
Nature, Quality and Extent of Services. The Board considered the terms of the Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DWS provides portfolio management services to the Fund and that, pursuant to a separate administrative services agreement, DWS provides administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel, the resources made available to such personnel, the ability of DWS to attract and retain high-quality personnel and the organizational depth and stability of DWS. The Board reviewed the Fund's performance over short-term and long-term periods and compared those returns to various agreed-upon performance measures, including a peer universe compiled by the independent fee consultant using information supplied by iMoneyNet Inc. ("iMoneyNet"). The Board also noted that it has put into place a process of identifying "Focus Funds" (e.g., funds performing poorly relative to their benchmark or a peer universe compiled by iMoneyNet), and receives more frequent reporting and information from DWS regarding such funds, along with DWS's remedial plans to address underperformance. The Board believes this process is an effective manner of identifying and addressing underperforming funds. Based on the information provided, the Board noted that for the one- and three- year periods ended December 31, 2008, the Fund's gross performance (DWS Tax-Exempt Cash Institutional Shares) was in the 2nd quartile of the applicable iMoneyNet universe (the 1st quartile being the best performers and the 4th quartile being the worst performers).
On the basis of this evaluation and the ongoing review of investment results by the Board, the Board concluded that the nature, quality and extent of services provided by DWS historically have been and continue to be satisfactory.
Fees and Expenses. The Board considered the Fund's investment management fee schedule, operating expenses, and total expense ratios, and comparative information provided by Lipper Inc. ("Lipper") and the independent fee consultant regarding investment management fee rates paid to other investment advisors by similar funds (1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates paid by the Fund, which include the 0.10% fee paid to DWS under the Fund's administrative services agreement, were lower than the median (1st quartile) of the applicable Lipper peer group (based on Lipper data provided as of December 31, 2008). The Board also reviewed data comparing each share class's total (net) operating expenses to the applicable Lipper expense universe. The Board also noted that the expense limitations agreed to by DWS helped to ensure that the Fund's total (net) operating expenses would remain competitive.
The information considered by the Board as part of their review of management fees included information regarding fees charged by DWS and its affiliates to similar institutional accounts and to similar funds managed by the same portfolio management teams but offered primarily to European investors ("DWS Europe funds"), in each case as applicable. The Board observed that advisory fee rates for institutional accounts generally were lower than the management fees charged by similarly managed DWS US Mutual Funds ("DWS Funds"), but also took note of the differences in services provided to DWS Funds as compared to institutional accounts. In the case of DWS Europe funds, the Board observed that fee rates for DWS Europe funds generally were higher than for similarly managed DWS Funds, but noted that differences in the types of services provided to DWS Funds relative to DWS Europe funds made it difficult to compare such fees.
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DWS.
Profitability. The Board reviewed detailed information regarding revenues received by DWS under the Agreement. The Board considered the estimated costs and pre-tax profits realized by DWS from advising the DWS Funds, as well as estimates of the pre-tax profits attributable to managing the Fund in particular. The Board also received information regarding the estimated enterprise-wide profitability of DWS and its affiliates with respect to all fund services in totality and by fund. The Board reviewed DWS's methodology in allocating its costs to the management of the Fund. Based on the information provided, the Board concluded that the pre-tax profits realized by DWS in connection with the management of the Fund were not unreasonable. 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 (and in some cases is not necessarily prepared on a comparable basis), DWS and its affiliates' overall profitability with respect to the DWS fund complex (after taking into account distribution and other services provided to the funds by DWS and its affiliates) was lower than the overall profitability levels of many comparable firms for which such data was available.
Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Fund and whether the Fund benefits from any economies of scale. The Board noted that the Fund's management fee schedule includes fee breakpoints. The Board concluded that the Fund's fee schedule represents an appropriate sharing between the Fund and DWS of such economies of scale as may exist in the management of the Fund at current asset levels.
Other Benefits to DWS and Its Affiliates. The Board also considered the character and amount of other incidental benefits received by DWS and its affiliates, including any fees received by DWS for administrative services provided to the Fund and any fees received by an affiliate of DWS for distribution services. The Board also considered benefits to DWS related to brokerage and soft-dollar allocations, including allocating brokerage to pay for research generated by parties other than the executing broker dealers, which pertain primarily to funds investing in equity securities, along with the incidental public relations benefits to DWS related to DWS Funds advertising and cross-selling opportunities among DWS products and services. The Board concluded that management fees were reasonable in light of these fallout benefits.
Compliance. The Board considered the significant attention and resources dedicated by DWS to documenting and enhancing its compliance processes in recent years. The Board noted in particular (i) the experience and seniority of both DWS's chief compliance officer and the Fund's chief compliance officer; (ii) the large number of DWS compliance personnel; and (iii) the substantial commitment of resources by DWS and its affiliates to compliance matters.
Based on all of the information considered and the conclusions reached, the Board unanimously (including the Independent Trustees) determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Trustees and their counsel present. It is possible that individual Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.
Summary of Management Fee Evaluation by Independent Fee Consultant
October 9, 2009, As Revised November 20, 2009
Pursuant to an Order entered into by Deutsche Investment Management Americas and affiliates (collectively, "DeAM") with the Attorney General of New York, I, Thomas H. Mack, have been appointed the Independent Fee Consultant for the DWS Funds (formerly the DWS Scudder Funds). My duties include preparing an annual written evaluation of the management fees DeAM charges the Funds, considering among other factors the management fees charged by other mutual fund companies for like services, management fees DeAM charges other clients for like services, DeAM's costs of supplying services under the management agreements and related profit margins, possible economies of scale if a Fund grows larger, and the nature and quality of DeAM's services, including fund performance. This report summarizes my evaluation for 2009, including my qualifications, the evaluation process for each of the DWS Funds, consideration of certain complex-level factors, and my conclusions. I served in substantially the same capacity in 2007 and 2008.
Qualifications
For more than 35 years I have served in various professional capacities within the investment management business. I have held investment analysis and advisory positions, including securities analyst, portfolio strategist and director of investment policy with a large investment firm. I have also performed business management functions, including business development, financial management and marketing research and analysis.
Since 1991, I have been an independent consultant within the asset management industry. I have provided services to over 125 client organizations, including investment managers, mutual fund boards, product distributors and related organizations. Over the past ten years I have completed a number of assignments for mutual fund boards, specifically including assisting boards with management contract renewal.
I hold a Master of Business Administration degree, with highest honors, from Harvard University and Master of Science and Bachelor of Science (highest honors) degrees from the University of California at Berkeley. I am an independent director and audit committee financial expert for two closed-end mutual funds and serve in various leadership and financial oversight capacities with non-profit organizations.
Evaluation of Fees for each DWS Fund
My work focused primarily on evaluating, fund-by-fund, the fees charged to each of the 124 publicly offered Fund portfolios in the DWS Fund family. For each Fund, I considered each of the key factors mentioned above, as well as any other relevant information. In doing so I worked closely with the Funds' Independent Directors in their annual contract renewal process, as well as in their approval of contracts for several new funds (documented separately).
In evaluating each Fund's fees, I reviewed comprehensive materials provided by or on behalf of DeAM, including expense information prepared by Lipper Analytical, comparative performance information, profitability data, manager histories, and other materials. I also accessed certain additional information from the Lipper, Strategic Insight, and Morningstar databases and drew on my industry knowledge and experience.
To facilitate evaluating this considerable body of information, I prepared for each Fund a document summarizing the key data elements in each area as well as additional analytics discussed below. This made it possible to consider each key data element in the context of the others.
In the course of contract renewal, DeAM agreed to implement a number of fee and expense adjustments requested by the Independent Directors which will favorably impact future fees and expenses, and my evaluation includes the effects of these changes.
Fees and Expenses Compared with Other Funds
The competitive fee and expense evaluation for each fund focused on two primary comparisons:
The Fund's contractual management fee (the advisory fee plus the administration fee where applicable) compared with those of a group of typically 12-15 funds in the same Lipper investment category (e.g. Large Capitalization Growth) having similar distribution arrangements and being of similar size.
The Fund's total expenses compared with a broader universe of funds from the same Lipper investment category and having similar distribution arrangements.
These two comparisons provide a view of not only the level of the fee compared with funds of similar scale but also the total expense the Fund bears for all the services it receives, in comparison with the investment choices available in the Fund's investment category and distribution channel. The principal figure-of-merit used in these comparisons was the subject Fund's percentile ranking against peers.
DeAM's Fees for Similar Services to Others
DeAM provided management fee schedules for all of its US domiciled fund and non-fund investment management accounts in any of the investment categories where there is a DWS Fund. These similar products included the other DWS Funds, non-fund pooled accounts, institutional accounts and sub-advisory accounts. Using this information, I calculated for each Fund the fee that would be charged to each similar product, at the subject Fund's asset level.
Evaluating information regarding non-fund products is difficult because there are varying levels of services required for different types of accounts, with mutual funds generally requiring considerably more regulatory and administrative types of service as well as having more frequent cash flows than other types of accounts. Also, while mutual fund fees for similar fund products can be expected to be similar, there will be some differences due to different pricing conditions in different distribution channels (e.g. retail funds versus those used in variable insurance products), differences in underlying investment processes and other factors.
Costs and Profit Margins
DeAM provided a detailed profitability analysis for each Fund. After making some adjustments so that the presentation would be more comparable to the available industry figures, I reviewed profit margins from investment management alone, from investment management plus other fund services (excluding distribution) provided to the Funds by DeAM (principally shareholder services), and DeAM profits from all sources, including distribution. A later section comments on overall profitability.
Economies of Scale
Economies of scale — an expected decline in management cost per dollar of fund assets as fund assets grow — are very rarely quantified and documented because of inherent difficulties in collecting and analyzing relevant data. However, in virtually every investment category that I reviewed, larger funds tend to have lower fees and lower total expenses than smaller funds. To see how each DWS Fund compares with this industry observation, I reviewed:
The trend in Fund assets over the last five years and the accompanying trend in total expenses. This shows if the Fund has grown and, if so, whether total expense (management fees as well as other expenses) have declined as a percent of assets.
Whether the Fund has break-points in its management fee schedule, the extent of the fee reduction built into the schedule and the asset levels where the breaks take effect, and in the case of a sub-advised Fund how the Fund's break-points compare with those of the sub-advisory fee schedule.
How the Fund's contractual fee schedule compares with trends in the industry data. To accomplish this, I constructed a chart showing how actual latest-fiscal-year contractual fees of the Fund and of other similar funds relate to average fund assets, with the subject Fund's contractual fee schedule superimposed.
Quality of Service — Performance
The quality-of-service evaluation focused on investment performance, which is the principal result of the investment management service. Each Fund's performance was reviewed over the past 1, 3, 5 and 10 years, as applicable, and compared with that of other funds in the same investment category and with a suitable market index.
In addition, I calculated and reviewed risk-adjusted returns relative to an index of similar mutual funds' returns and a suitable market index. The risk-adjusted returns analysis provides a way of determining the extent to which the Fund's return comparisons are mainly the product of investment value-added (or lack thereof) or alternatively taking considerably more or less risk than is typical in its investment category.
I also received and considered the history of portfolio manager changes for each Fund, as this provided an important context for evaluating the performance results.
Complex-Level Considerations
While this evaluation was conducted mainly at the individual fund level, there are some issues relating to the reasonableness of fees that can alternatively be considered across the whole fund complex:
I reviewed DeAM's profitability analysis for all DWS Funds, with a view toward determining if the allocation procedures used were reasonable and how profit levels compared with public data for other investment managers.
I considered whether DeAM and affiliates receive any significant ancillary or "fall-out" benefits that should be considered in interpreting the direct profitability results. These would be situations where serving as the investment manager of the Funds is beneficial to another part of the Deutsche Bank organization.
I considered how aggregated DWS Fund expenses had varied over the years, by asset class and in the context of trends in asset levels.
I reviewed the structure of the DeAM organization, trends in staffing levels, and information on compensation of investment management and other professionals compared with industry data.
Findings
Based on the process and analysis discussed above, which included reviewing a wide range of information from management and external data sources and considering among other factors the fees DeAM charges other clients, the fees charged by other fund managers, DeAM's costs and profits associated with managing the Funds, economies of scale, possible fall-out benefits, and the nature and quality of services provided, in my opinion the management fees charged the DWS Funds are reasonable.
Thomas H. Mack
Privacy Statement
Dear Valued Client:
Your confidence is important to us. So we want to make sure you know our policies regarding the handling of our clients' private information. The following information is issued by DWS Investments Distributors, Inc., Deutsche Investment Management Americas Inc., DeAM Investor Services, Inc., DWS Trust Company and the DWS Funds.
We consider privacy fundamental to our client relationships and adhere to the policies and practices described below to protect current and former clients' information. We never sell customer lists or individual client information. Internal policies are in place to protect confidentiality, while allowing client needs to be served. Only individuals who need to do so in carrying out their job responsibilities may access client information. We maintain physical, electronic and procedural safeguards that comply with federal 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 Web sites, 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.
In addition, we may disclose 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. These organizations may only use client information for the purpose designated by the companies listed above. Additional requirements beyond federal law may be imposed by certain states. To the extent that these state laws apply, we will comply with them before we share information about you.
We may also disclose nonpublic personal information about you to other parties as required or permitted by law. For example, we are required to or 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.
At any time, if you have questions about our policy, please write to us at:
DWS Investments
Attention: Correspondence — Chicago
P.O. Box 219415
Kansas City, MO 64121-9415 September 2009
Notes
Notes
Notes
Notes
Notes
ITEM 2. | CODE OF ETHICS |
| |
| Not applicable. |
| |
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT |
| |
| Not applicable. |
| |
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
| |
| Not applicable. |
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS |
| |
| Not Applicable |
| |
ITEM 6. | SCHEDULE OF INVESTMENTS |
| |
| Not Applicable |
| |
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
| |
| Not applicable. |
| |
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
| |
| Not applicable. |
| |
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS |
| |
| Not applicable. |
| |
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
| |
| The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Chairman of the Board, P.O. Box 100176, Cape Coral, FL 33910. |
| |
ITEM 11. | CONTROLS AND PROCEDURES |
| |
| (a) The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report. |
| |
| (b) There have been no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting. |
| |
ITEM 12. | EXHIBITS |
| |
| (a)(1) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
| |
| (b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
Form N-CSRS 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: | Money Market Portfolio , Government & Agency Securities Portfolio & Tax-Exempt Portfolio (Premier Money Market Shares), a series of Cash Account Trust |
| |
| |
By: | /s/Michael G. Clark Michael G. Clark President |
| |
Date: | December 30, 2009 |
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: | Money Market Portfolio , Government & Agency Securities Portfolio & Tax-Exempt Portfolio (Premier Money Market Shares), a series of Cash Account Trust |
| |
| |
By: | /s/Michael G. Clark Michael G. Clark President |
| |
Date: | December 30, 2009 |
| |
| |
By: | /s/Paul Schubert Paul Schubert Chief Financial Officer and Treasurer |
| |
Date: | December 30, 2009 |
