UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSR
Investment Company Act file number: 811-05970
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) 250-2500
Diane Kenneally
One International Place
Boston, MA 02110
(Name and Address of Agent for Service)
Date of fiscal year end: | 4/30 |
Date of reporting period: | 4/30/2019 |
ITEM 1. | REPORT TO STOCKHOLDERS |
This N-CSR filing contains the annual reports relating to the classes of the following series of the registrant:
DWS Government & Agency Securities Portfolio and DWS Tax-Exempt Portfolio — Service Shares
DWS Government & Agency Securities Portfolio — DWS Government Cash Institutional Shares and Government Cash Managed Shares
DWS Government & Agency Securities Portfolio — DWS Government & Agency Money Fund DWS Tax-Exempt Portfolio — DWS Tax-Exempt Cash Premier Shares and Tax-Exempt Cash Managed Shares
DWS Tax-Exempt Portfolio — DWS Tax-Exempt Money Fund
DWS Tax-Exempt Portfolio — DWS Tax-Free Money Fund Class S
DWS Tax-Exempt Portfolio — Tax-Free Investment Class
Table of Contents
April 30, 2019
Annual Report
to Shareholders
Cash Account Trust
Service Shares
DWS Government & Agency Securities Portfolio
(formerly Deutsche Government & Agency Securities Portfolio)
DWSTax-Exempt Portfolio
(formerly DeutscheTax-Exempt Portfolio)
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s Web site (dws.com), and you will be notified by mail each time a report is posted and provided with a Web site link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank), or if you are a direct investor, by calling (800) 728-3337 or sending an email request to service@dws.com.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 728-3337 or send an email request to service@dws.com to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with DWS if you invest directly with the Fund.
Table of Contents
3 | Portfolio Management Review | |||
| DWS Government & Agency Securities Portfolio | |||
8 | Portfolio Summary | |||
9 | Investment Portfolio | |||
13 | Statement of Assets and Liabilities | |||
15 | Statement of Operations | |||
16 | Statements of Changes in Net Assets | |||
17 | Financial Highlights | |||
DWS Tax-Exempt Portfolio | ||||
18 | Portfolio Summary | |||
19 | Investment Portfolio | |||
30 | Statement of Assets and Liabilities |
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 dws.com. We advise you to consider a fund’s objectives, risks, charges and expenses carefully before investing. The summary prospectus and prospectus contain this and other important information about each fund. Please read the prospectus carefully before you invest.
You could lose money by investing in the Funds. Although the Funds seek to preserve the value of your investment at $1.00 per share, each Fund cannot guarantee it will do so. The DWSTax-Exempt Portfolio may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the DWSTax-Exempt Portfolio’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time. You should not rely on or expect the Advisor to enter into support agreements or take other actions to maintain a fund’s $1.00 share price. The credit quality of the Fund’s holdings can change rapidly in certain markets, and the default of a single holding could have an adverse impact on a fund’s share price. The Fund’s share price can also be negatively affected during periods of high redemption pressures and/or illiquid markets. The actions of a few large investors in one class of shares in a fund may have a significant adverse effect on the share prices of all classes of shares within that fund. Please read the prospectus for specific details regarding each Fund’s risk profile.
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
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Portfolio Management Review | (Unaudited) |
Market Overview
All performance information below is historical and does not guarantee future results. Investment return and principal fluctuate, so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit dws.com for the Funds’ most recentmonth-end performance. The7-day current yield refers to the income paid by the Funds over a7-day period expressed as an annual percentage rate of each Fund’s shares outstanding. Yields fluctuate and are not guaranteed.
Over the past 12 months ended April 30, 2019, yields across the money market yield curve fluctuated based on the growing U.S. economy and evolving U.S. Federal Reserve (the Fed) statements and actions. In light of continued economic strength and a tight labor market, the Federal Open Market Committee (FOMC) raised short-term rates at its June 2018 meeting. In September, the Fed once again raised rates, with accompanying statements that at the time were viewed as aggressive regarding the prospects for future rate hikes. In December, a number of factors contributed to a considerable increase in financial market volatility and a tightening in overall financial conditions. These factors included statements by the Fed following its December 2018 rate hike. In December, the Fed’s messaging disappointed market watchers because the central bank did not commit to a pause in its rate hikes, despite signs that growth was slowing in some parts of the global economy. Disappointment in the Fed’s statements during the fourth quarter of 2018 coincided with a major correction in the stock markets, an inverted yield curve (often a predictor of economic recession), a widening of credit spreads, apparent difficulties in trade talks with China, and a U.S. government shutdown.
In January, the short-term rate environment underwent a meaningful change: Responding to the significant financial market disruptions that had taken place in late 2018, the Fed pivoted dramatically, taking all of its rate hike forecasts off the table and changing from a hawkish to a neutral (to some observers, even dovish) monetary policy stance. The Fed not only walked backed its projections of fed funds rate increases, but also lowered its U.S. economic growth estimates. Money market participants took the altered short-term rate expectations even further by “pricing in” a Fed rate cut in early 2020. At the end of the12-month period, the
Cash Account Trust — Service Shares | | | 3 |
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market consensus was that in terms of possible short-term rate changes, the Fed would most likely be on hold for the remainder of 2019.
Positive Contributors to Fund Performance
DWS Government & Agency Securities Portfolio seeks to provide maximum current income consistent with stability of capital.
Within the DWS Government & Agency Securities Portfolio, we were able to maintain what we believe to be a competitive yield for the Fund during its annual period ended April 30, 2019. For the period, the Fund held a large percentage of portfolio assets in agency and Treasury floating-rate securities to take advantage of any rises in LIBOR and Treasury bill rates. At the same time, the Fund invested in overnight agency and Treasury repurchase agreements for liquidity and looked for yield opportunities from three- tosix-month agency and Treasury securities.
DWSTax-Exempt Portfolio seeks to provide maximum current income that is exempt from federal income taxes to the extent consistent with stability of capital.
For the DWS Tax Exempt Portfolio, we sought to achieve an attractive yield by implementing a strategic balance of short liquidity instruments, as well as longer-term products. With an increase in market volatility, keeping overweight balances in floating-rate VRDNs (Variable Rate Demand Notes) enabled the Fund to purchase fixed-term commercial paper with maturities of 30 to 90 days, providing what we believe to be attractive yield. (The interest rate of variable rate securities adjusts periodically based on indices such as the Securities Industry and Financial Market Association Index of Variable Rate Demand Notes. Because the interest rates of these instruments adjust as market conditions change, they provide flexibility in an uncertain interest rate environment.)
Negative Contributors to Fund Performance
The types of securities that we invested in tended to have lower yields than issues carrying more risk. We preferred to be cautious during a time of market uncertainty. In the end this may have cost the Funds some yield, but we believe that this represented a prudent approach to preserving principal.
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Outlook and Positioning
We are cautious regarding current U.S. economic policy, the global geopolitical situation, and the agenda on trade that the administration is pursuing. However, we believe that the economy can continue to expand, though with a possible slowdown later this year or early in 2020. For now we are positioning the Funds for continued growth. With no Fed rate hikes projected in the coming months, we plan to continue our current portfolio strategy until there is a significant shift in the market environment.
We continue our insistence on what we believe to be the highest credit quality within the Funds. We also plan to maintain what we believe to be our conservative investment strategies and standards under the current market conditions. We continue to apply what we believe to be a careful approach to investing on behalf of the Funds and to seek competitive yield for our shareholders.
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Fund Performance(as of April 30, 2019)
Performance is historical and does not guarantee future results. Current performance may be lower or higher than the performance data quoted.
You could lose money by investing in the Funds. Although the Funds seek to preserve the value of your investment at $1.00 per share, each Fund cannot guarantee it will do so. The DWSTax-Exempt Portfolio may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the DWSTax-Exempt Portfolio’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time
7-Day Current Yield | ||||
DWS Government & Agency Securities Portfolio — Service Shares | 1.51%* | |||
DWSTax-Exempt Portfolio — Service Shares | 1.11%* | |||
Equivalent Taxable Yield | 1.70%** |
Yields are historical, will fluctuate and do not guarantee future performance. The7-day current yield refers to the income paid by the Funds over a7-day period expressed as an annual percentage rate of the Funds’ shares outstanding. For the most current yield information, visit our Web site at dws.com.
* | The 7-Day Current Yield would have been 1.45% and 0.87% for DWS Government & Agency Securities Portfolio — Service Shares and DWS Tax-Exempt Portfolio — Service Shares respectively, had certain expenses not been reduced. |
** | The equivalent taxable yield allows you to compare with the performance of taxable money market funds. For the DWSTax-Exempt Portfolio, the equivalent taxable yield is based upon the marginal income tax rate of 40.8%. Income may be subject to local taxes and, for some investors, the alternative minimum tax. |
Portfolio Management Team
A group of investment professionals is responsible for theday-to-day management of the Fund. These investment professionals have a broad range of experience managing money market funds.
The views expressed reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The management team’s views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Past performance is no guarantee of future results. Current and future portfolio holdings are subject to risk.
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Terms to Know
Theyield curve is a graphical representation of how yields on bonds of different maturities compare. Normally, yield curves slant up, as bonds with longer maturities typically offer higher yields than short-term bonds.
Floating-rate securities are debt instruments with floating-rate coupons that generally reset every 30 to 90 days. While floating-rate securities are senior to equity and fixed-income securities, there is no guaranteed return of principal in case of default. Floating-rate issues often have less interest-rate risk than other fixed-income investments. Floating-rate securities are most often secured assets, generally senior to a company’s secured debt, and can be transferred to debt holders, resulting in potential downside risk.
LIBOR, or London Interbank Offered Rate, is a benchmark rate that some of the world’s leading banks charge each other for short-term loans. LIBOR serves as the first step to calculating interest rates on various loans throughout the world.
Arepurchase agreement, or “overnight repo,” is an agreement between a seller and a buyer, usually of government securities, where the seller agrees to repurchase the securities at a given price and usually at a stated time. Repos are widely used money market instruments that serve as an interest-bearing, short-term “parking place” for large sums of money.
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* | The Fund is compared to its respective iMoney Net Category: Government & Agencies Retail Money Fund Average consists of allnon-institutional government money market funds. Category includes the most broadly based of the government retail funds. These funds can invest in U.S. Treasuries, U.S. Other, Repos, whether or not they are backed by U.S. Treasuries andgovernment-backed Floating Rate Notes. |
Weighted average maturity, also known as effective maturity, is the weighted average of the maturity date of bonds held by the Fund taking into consideration any available maturity shortening features.
Portfolio holdings and characteristics are subject to change.
For more complete details about the Fund’s holdings, see pages 9–12. A quarterly Fact Sheet is available on dws.com or upon request.
8 | | | Cash Account Trust — Service Shares |
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Investment Portfolio | as of April 30, 2019 |
DWS Government & Agency Securities Portfolio
Principal Amount ($) | Value ($) | |||||||
Government & Agency Obligations 56.5% | ||||||||
U.S. Government Sponsored Agencies 55.6% | ||||||||
Federal Farm Credit Bank: | ||||||||
1-month LIBOR minus 0.123%, 2.35%**, 8/13/2019 | 25,000,000 | 25,000,000 | ||||||
1-month LIBOR minus 0.095%, 2.382%**, 7/25/2019 | 12,000,000 | 11,999,964 | ||||||
1-month LIBOR minus 0.075%, 2.402%**, 11/5/2019 | 18,000,000 | 17,999,051 | ||||||
1-month LIBOR minus 0.050%, 2.427%**, 2/25/2020 | 20,000,000 | 19,999,260 | ||||||
1-month LIBOR minus 0.050%, 2.429%**, 2/4/2020 | 32,000,000 | 32,000,000 | ||||||
1-month LIBOR minus 0.035%, 2.452%**, 8/20/2020 | 48,500,000 | 48,500,000 | ||||||
1-month LIBOR minus 0.025%, 2.454%**, 5/29/2020 | 12,500,000 | 12,499,327 | ||||||
1-month LIBOR plus 0.010%, 2.497%**, 8/19/2020 | 7,500,000 | 7,501,060 | ||||||
3-month LIBOR minus 0.180%, 2.556%**, 11/1/2019 | 25,000,000 | 25,000,000 | ||||||
2.626%*, 8/21/2019 | 10,000,000 | 9,919,422 | ||||||
1-month LIBOR plus 0.190%, 2.677%**, 6/20/2019 | 30,000,000 | 30,011,044 | ||||||
Federal Home Loan Bank: | ||||||||
2.49%, 5/6/2019 | 20,000,000 | 19,999,962 | ||||||
1-month LIBOR minus 0.125%, 2.362%**, 6/21/2019 | 40,000,000 | 40,000,000 | ||||||
3-month LIBOR minus 0.023%, 2.385%**, 12/3/2019 | 25,000,000 | 25,000,000 | ||||||
1-month LIBOR minus 0.085%, 2.388%**, 9/13/2019 | 38,000,000 | 38,000,000 | ||||||
3-month LIBOR minus 0.020%, 2.401%**, 1/16/2020 | 14,000,000 | 14,000,000 | ||||||
1-month LIBOR minus 0.065%, 2.414%**, 8/28/2019 | 18,500,000 | 18,500,000 | ||||||
1-month LIBOR minus 0.060%, 2.414%**, 12/6/2019 | 30,000,000 | 30,000,000 | ||||||
1-month LIBOR minus 0.055%, 2.418%**, 1/14/2020 | 30,000,000 | 30,000,000 | ||||||
2.423%*, 7/9/2019 | 40,000,000 | 39,816,767 | ||||||
3-month LIBOR minus 0.019%, 2.439%**, 8/28/2019 | 35,000,000 | 35,000,000 | ||||||
2.443%*, 8/15/2019 | 25,000,000 | 24,822,597 | ||||||
2.449%*, 6/12/2019 | 20,000,000 | 19,943,650 | ||||||
3-month LIBOR minus 0.245%, 2.449%**, 8/16/2019 | 35,000,000 | 34,993,606 | ||||||
3-month LIBOR minus 0.135%, 2.469%**, 4/13/2020 | 25,000,000 | 25,000,000 | ||||||
1-month LIBOR minus 0.010%, 2.476%**, 9/1/2020 | 20,000,000 | 20,000,000 | ||||||
2.486%*, 9/11/2019 | 48,000,000 | 47,565,179 | ||||||
3-month LIBOR minus 0.195%, 2.498%**, 2/14/2020 | 35,000,000 | 35,000,000 | ||||||
2.5%, 5/7/2019 | 44,000,000 | 43,999,898 | ||||||
SOFR plus 0.020%, 2.5%**, 8/27/2019 | 30,000,000 | 30,000,000 | ||||||
SOFR plus 0.025%, 2.505%**, 9/20/2019 | 8,500,000 | 8,500,000 | ||||||
SOFR plus 0.030%, 2.51%**, 10/9/2019 | 32,000,000 | 32,000,000 | ||||||
SOFR plus 0.035%, 2.515%**, 2/21/2020 | 28,000,000 | 28,000,000 | ||||||
SOFR plus 0.040%, 2.52%**, 6/21/2019 | 30,000,000 | 30,000,000 | ||||||
2.53%*, 5/31/2019 | 10,000,000 | 9,979,208 |
The accompanying notes are an integral part of the financial statements.
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Principal Amount ($) | Value ($) | |||||||
SOFR plus 0.060%, 2.54%**, 9/10/2019 | 28,000,000 | 28,000,000 | ||||||
SOFR plus 0.065%, 2.545%**, 11/15/2019 | 22,500,000 | 22,500,000 | ||||||
2.58%, 3/30/2020 | 62,000,000 | 62,000,000 | ||||||
SOFR plus 0.105%, 2.585%**, 10/1/2020 | 20,000,000 | 20,000,000 | ||||||
2.596%*, 7/29/2019 | 35,000,000 | 34,778,489 | ||||||
Federal Home Loan Mortgage Corp.: | ||||||||
1-month LIBOR minus 0.110%, 2.369%**, 5/28/2019 | 33,000,000 | 33,000,000 | ||||||
1-month LIBOR minus 0.100%, 2.374%**, 8/8/2019 | 68,000,000 | 67,998,958 | ||||||
2.454%*, 6/5/2019 | 50,000,000 | 49,882,361 | ||||||
SOFR minus 0.01%, 2.47%**, 5/20/2019 | 41,000,000 | 41,000,000 | ||||||
SOFR minus 0.01%, 2.47%**, 5/22/2019 | 50,000,000 | 50,000,000 | ||||||
SOFR minus 0.01%, 2.47%**, 8/5/2019 | 60,000,000 | 60,000,000 | ||||||
SOFR plus 0.010%, 2.49%**, 7/11/2019 | 14,000,000 | 14,000,000 | ||||||
SOFR plus 0.025%, 2.505%**, 5/8/2019 | 38,750,000 | 38,750,000 | ||||||
SOFR plus 0.030%, 2.51%**, 6/19/2019 | 32,000,000 | 32,000,000 | ||||||
Federal National Mortgage Association: | ||||||||
SOFR plus 0.060%, 2.54%**, 7/30/2020 | 16,500,000 | 16,500,000 | ||||||
SOFR plus 0.070%, 2.55%**, 10/30/2019 | 5,000,000 | 5,000,000 | ||||||
SOFR plus 0.075%, 2.555%**, 10/30/2020 | 22,000,000 | 22,000,000 | ||||||
SOFR plus 0.010%, 2.58%**, 4/30/2020 | 5,000,000 | 5,000,000 | ||||||
|
| |||||||
1,522,959,803 | ||||||||
U.S. Treasury Obligation 0.9% | ||||||||
U.S. Treasury Bill, 2.514%*, 6/13/2019 | 25,590,000 | 25,514,197 | ||||||
Total Government & Agency Obligations(Cost $1,548,474,000) |
| 1,548,474,000 | ||||||
Repurchase Agreements 43.0% | ||||||||
Barclays Bank PLC, 2.75%, dated 4/30/2019, to be repurchased at $350,026,736 on 5/1/2019 (a) | 350,000,000 | 350,000,000 | ||||||
BNP Paribas, 2.75%, dated 4/30/2019, to be repurchased at $345,626,400 on 5/1/2019 (b) | 345,600,000 | 345,600,000 | ||||||
HSBC Securities, Inc., 2.75%, dated 4/30/2019, to be repurchased at $177,413,551 on 5/1/2019 (c) | 177,400,000 | 177,400,000 | ||||||
Wells Fargo Bank, 2.77%, dated 4/30/2019, to be repurchased at $303,481,349 on 5/1/2019 (d) | 303,458,000 | 303,458,000 | ||||||
| ||||||||
Total Repurchase Agreements(Cost $1,176,458,000) | 1,176,458,000 | |||||||
% of Net Assets | Value ($) | |||||||
Total Investment Portfolio(Cost $2,724,932,000) | 99.5 | 2,724,932,000 | ||||||
Other Assets and Liabilities, Net | 0.5 | 13,333,511 | ||||||
| ||||||||
Net Assets | 100.0 | 2,738,265,511 |
The accompanying notes are an integral part of the financial statements.
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* | Annualized yield at time of purchase; not a coupon rate. |
** | Floating rate security. These securities are shown at their current rate as of April 30, 2019. |
(a) | Collateralized by $356,634,000 U.S. Treasury Bonds, 2.25%, with various maturity dates of3/31/2021-4/30/2021 with a value of $357,000,076. |
(b) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) | ||||||||
16,477,700 | U.S. Treasury Bills | Zero Coupon | 6/20/2019 | 16,422,005 | ||||||||
284,000 | U.S. Treasury Bonds | 2.125 | 8/15/2021 | 284,158 | ||||||||
333,794,200 | U.S. Treasury Notes | 1.875–2.75 | 3/15/2021–4/30/2026 | 335,805,875 | ||||||||
Total Collateral Value | 352,512,038 |
(c) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) | ||||||||
66,737,800 | U.S. Treasury Bonds | 1.25–1.75 | 10/31/2019–11/30/2021 | 66,375,862 | ||||||||
144,925,423 | U.S. Treasury STRIPS | Zero Coupon | 8/15/2025–5/15/2047 | 114,572,143 | ||||||||
Total Collateral Value | 180,948,005 |
(d) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) | ||||||||
192,746,394 | Federal National Mortgage Association | 3–4.5 | 10/1/2033–3/1/2049 | 194,786,956 | ||||||||
115,138,672 | Federal National Mortgage Corp. — Interest Only | 2.5–5 | 1/1/2034–5/1/2049 | 114,740,204 | ||||||||
Total Collateral Value | 309,527,160 |
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
SOFR: Secured Overnight Financing Rate
STRIPS: Separate Trading of Registered Interest and Principal Securities
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Securities held by the Fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
The accompanying notes are an integral part of the financial statements.
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The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments in Securities (e) | $ | — | $ | 1,548,474,000 | $ | — | $ | 1,548,474,000 | ||||||||
Repurchase Agreements | — | 1,176,458,000 | — | 1,176,458,000 | ||||||||||||
Total | $ | — | $ | 2,724,932,000 | $ | — | $ | 2,724,932,000 |
(e) | See Investment Portfolio for additional detailed categorizations. |
The accompanying notes are an integral part of the financial statements.
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Statement of Assets and Liabilities
as of April 30, 2019 |
| |||
Assets | | DWS Government & Agency Securities Portfolio | | |
Investment in securities, valued at amortized cost | $ | 1,548,474,000 | ||
Repurchased agreements, valued at amortized cost | 1,176,458,000 | |||
Cash | 28,914,850 | |||
Receivable for Fund shares sold | 5,921,099 | |||
Interest receivable | 4,067,332 | |||
Other assets | 84,582 | |||
Total assets | 2,763,919,863 | |||
Liabilities |
| |||
Payable for investments purchased | 20,000,000 | |||
Payable for Fund shares redeemed | 1,389,196 | |||
Distributions payable | 3,594,110 | |||
Accrued management fee | 39,232 | |||
Accrued Trustees’ fees | 38,447 | |||
Other accrued expenses and payables | 593,367 | |||
Total liabilities | 25,654,352 | |||
Net assets, at value | $ | 2,738,265,511 | ||
Net Assets Consist of |
| |||
Distributable earnings (loss) | 148,995 | |||
Paid-in capital | 2,738,116,516 | |||
Net assets, at value | $ | 2,738,265,511 |
The accompanying notes are an integral part of the financial statements.
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Statement of Assets and Liabilitiesas of April 30, 2019 (continued) |
Net Asset Value | | DWS Government & Agency Securities Portfolio | | |
DWS Government & Agency Money Fund |
| |||
Net Asset Value, offering and redemption price per share ($213,967,551 ÷ 213,972,747 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 ($2,333,884,456 ÷ 2,333,942,335 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 ($173,913,987 ÷ 173,918,298 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 ($16,499,517 ÷ 16,499,926 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.
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for the year ended April 30, 2019 |
| |||
Investment Income | | DWS Government & Agency Securities Portfolio | | |
Income: |
| |||
Interest | $ | 73,480,927 | ||
Expenses: |
| |||
Management fee | 2,594,244 | |||
Administration fee | 3,452,936 | |||
Services to shareholders | 775,225 | |||
Distribution and service fees | 432,700 | |||
Custodian fee | 32,702 | |||
Professional fees | 177,192 | |||
Reports to shareholders | 90,969 | |||
Registration fees | 97,051 | |||
Trustees’ fees and expenses | 148,792 | |||
Other | 214,432 | |||
Total expenses before expense reductions | 8,016,243 | |||
Expense reductions | (2,477,579 | ) | ||
Total expenses after expense reductions | 5,538,664 | |||
Net investment income | 67,942,263 | |||
Net realized gain (loss) from investments | (53,787 | ) | ||
Net increase (decrease) in net assets resulting from operations | $ | 67,888,476 |
The accompanying notes are an integral part of the financial statements.
Cash Account Trust — Service Shares | | | 15 |
Table of Contents
Statements of Changes in Net Assets
DWS Government & Agency Securities Portfolio | ||||||||
Years Ended April 30, | ||||||||
Increase (Decrease) in Net Assets | 2019 | 2018 | ||||||
Operations: | ||||||||
Net investment income | $ | 67,942,263 | $ | 49,932,527 | ||||
Net realized gain (loss) | (53,787 | ) | 14,967 | |||||
Net increase in net assets resulting from operations | 67,888,476 | 49,947,494 | ||||||
Distributions to shareholders: | ||||||||
DWS Government & Agency Money Fund | (3,382,007 | ) | (1,360,880 | ) | ||||
DWS Government Cash Institutional Shares | (60,835,410 | ) | (46,766,865 | ) | ||||
Government Cash Managed Shares | (3,456,004 | ) | (1,689,030 | ) | ||||
Service Shares | (269,527 | ) | (115,061 | ) | ||||
Total distributions | (67,942,948 | ) | (49,931,836 | )* | ||||
Fund share transactions: | ||||||||
Proceeds from shares sold | 92,680,038,672 | 89,540,877,369 | ||||||
Reinvestment of distributions | 15,062,485 | 7,913,702 | ||||||
Payments for shares redeemed | (94,673,626,673 | ) | (89,445,003,701 | ) | ||||
Net increase (decrease) in net assets from Fund share transactions | (1,978,525,516 | ) | 103,787,370 | |||||
Increase (decrease) in net assets | (1,978,579,988 | ) | 103,803,028 | |||||
Net assets at beginning of year | 4,716,845,499 | 4,613,042,471 | ||||||
Net assets at end of year | $ | 2,738,265,511 | $ | 4,716,845,499 | ** |
* | Includes distributions from net investment income. |
** | Includes undistributed net investment income of $205,206. |
The accompanying notes are an integral part of the financial statements.
16 | | | Cash Account Trust — Service Shares |
Table of Contents
DWS Government & Agency Securities Portfolio
Service Shares
Years Ended April 30, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Selected Per Share Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | .012 | .002 | .000 | * | .000 | * | .000 | * | ||||||||||||
Net realized gain (loss) | (.000 | )* | .000 | * | .000 | * | (.000 | )* | .000 | * | ||||||||||
Total from investment operations | 0.12 | .002 | .000 | * | .000 | * | .000 | * | ||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (.012 | ) | (.002 | ) | (.000 | )* | (.000 | )* | (.000 | )* | ||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Total Return (%)a | 1.21 | .23 | .01 | .01 | .01 | |||||||||||||||
Ratios to Average Net Assets and Supplemental Data |
| |||||||||||||||||||
Net assets, end of period ($ millions) | 16 | 46 | 32 | 46 | 64 | |||||||||||||||
Ratio of expenses before expense reductions (%) | 1.05 | 1.03 | 1.04 | 1.04 | 1.04 | |||||||||||||||
Ratio of expenses after expense reductions (%) | .98 | .98 | .48 | .20 | .08 | |||||||||||||||
Ratio of net investment income (%) | 1.09 | .22 | .01 | .01 | .01 |
a | Total return would have been lower had certain expenses not been reduced. |
* | Amount is less than $.0005. |
The accompanying notes are an integral part of the financial statements.
Cash Account Trust — Service Shares | | | 17 |
Table of Contents
Portfolio Summary | (Unaudited) |
DWSTax-Exempt Portfolio
Asset Allocation (As a % of Investment Portfolio) | 4/30/19 | 4/30/18 | ||||||
Municipal Investments | ||||||||
Municipal Variable Rate Demand Notes | 62% | 49% | ||||||
Tax-Exempt Commercial Paper | 17% | 17% | ||||||
Municipal Bonds and Notes | 11% | 20% | ||||||
Municipal Floating-Rate Notes | 5% | 5% | ||||||
Preferred Shares ofClosed-End Investment Companies | 5% | 9% | ||||||
100% | 100% | |||||||
Weighted Average Maturity | 4/30/19 | 4/30/18 | ||||||
Cash Account Trust — DWSTax-Exempt Portfolio | 13 days | 26 days | ||||||
NationalTax-Free Retail Money Fund Average* | 19 days | 19 days |
* | The Fund is compared to its respective iMoneyNet Category: NationalTax-Free Retail Money Fund Average — Category consists of all nationaltax-free and municipal retail funds. Portfolio holdings oftax-free funds include Rated and Unrated Demand Notes, Rated and Unrated General Market Notes; Commercial Paper; Put Bonds; AMT Paper and OtherTax-Free Holdings. |
Weighted average maturity, also known as effective maturity, is the weighted average of the maturity date of bonds held by the Fund taking into consideration any available maturity shortening features.
Portfolio holdings and characteristics are subject to change.
For more complete details about the Fund’s holdings, see pages 19–29. A quarterly Fact Sheet is available on dws.com or upon request.
18 | | | Cash Account Trust — Service Shares |
Table of Contents
Investment Portfolio | as of April 30, 2019 |
DWSTax-Exempt Portfolio
Principal Amount ($) | Value ($) | |||||||
Municipal Investments 94.8% | ||||||||
Alabama 0.5% | ||||||||
Tuscaloosa County, AL, Industrial Development Authority, Gulf Opportunity Zone, Hunt Refining Project, Series I, 144A, 2.33%*, 5/7/2019, LOC: Bank of Nova Scotia | 1,600,000 | 1,600,000 | ||||||
Alaska 0.5% | ||||||||
Alaska, State Industrial Development & Export Authority Revenue, Series B, 2.3%*, 5/1/2019, LOC: BankTokyo-Mitsubishi UFJ | 1,500,000 | 1,500,000 | ||||||
Arizona 1.5% | ||||||||
Arizona, State Health Facilities Authority Revenue, Dignity Health, Series A, 2.15%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 215,000 | 215,000 | ||||||
Arizona, State Health Facilities Authority, Banner Health, Series G, 2.42%*, 5/7/2019, LOC: Wells Fargo Bank NA | 285,000 | 285,000 | ||||||
Maricopa County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Sani Angelin Apartments Project, Series A, AMT, 2.5%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 240,000 | 240,000 | ||||||
Maricopa County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Sanitary Clemente Apartments Project, Series A, AMT, 2.45%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 810,000 | 810,000 | ||||||
Maricopa County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Sanitary Fernando Apartments Project, Series A, AMT, 2.45%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 445,000 | 445,000 | ||||||
Pima County, AZ, Industrial Development Authority,Multi-Family Housing Revenue, Eastside PL Apartments, 2.4%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 1,350,000 | 1,350,000 | ||||||
Pima County, AZ, Industrial Development Authority, Series A, 2.4%*, 5/7/2019, LOC: Federal Home Loan Bank | 950,000 | 950,000 | ||||||
|
| |||||||
4,295,000 | ||||||||
Arkansas 3.1% | ||||||||
Little Rock, AR, Metrocentere Improvement District No.1, Little Rock Newspapers, Inc., 2.3%*, 5/1/2019, LOC: JPMorgan Chase Bank NA | 2,500,000 | 2,500,000 | ||||||
Lowell, AR, Industrial Development Revenue, Little Rock Newspapers Project, AMT, 2.53%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 6,500,000 | 6,500,000 | ||||||
|
| |||||||
9,000,000 |
The accompanying notes are an integral part of the financial statements.
Cash Account Trust — Service Shares | | | 19 |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
California 3.3% | ||||||||
California, Statewide Community Development Authority, SeriesB-5, 1.77%, 8/7/2019 | 6,250,000 | 6,250,000 | ||||||
California, Wells Fargo Stage Trust Various States, Series 94C, 144A, AMT, MUNIPSA + 0.340%, 2.64%**, Mandatory Put 7/24/2019 @ 100, 5/1/2030, GTY: Wells Fargo Bank NA, LIQ: Wells Fargo Bank NA | 2,500,000 | 2,500,000 | ||||||
Los Angeles, CA, Municipal Improvement Corp., SeriesA-1, TECP, 1.66%, 5/30/2019 | 1,000,000 | 1,000,000 | ||||||
|
| |||||||
9,750,000 | ||||||||
Colorado 4.5% | ||||||||
Colorado, State Education Loan Program, Series A, 5.0%, 6/27/2019 | 12,500,000 | 12,566,113 | ||||||
Colorado, State Housing & Finance Authority, Series I - AA2, 2.45%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 500,000 | 500,000 | ||||||
|
| |||||||
13,066,113 | ||||||||
Connecticut 0.4% | ||||||||
Connecticut, Tender Option Bond Trust, Series 2018-XG0204, 2.33%*, 5/7/2019, LIQ: Barclays Bank PLC | 1,135,000 | 1,135,000 | ||||||
District of Columbia 0.3% | ||||||||
District of Columbia, Georgetown University Revenue,Series C-1, 2.32%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 420,000 | 420,000 | ||||||
District of Columbia, Metropolitan Airport Authority Systems Revenue, SeriesC-1, AMT, 2.35%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 450,000 | 450,000 | ||||||
|
| |||||||
870,000 | ||||||||
Florida 10.3% | ||||||||
Gainesville, FL, General Obligation Notes, Series C, TECP, 1.7%, 5/6/2019 | 2,000,000 | 2,000,000 | ||||||
Gainesville, FL, Industrial Development Revenue, Gainesville Hillel, Inc. Project, 2.15%*, 5/7/2019, LOC: Northern Trust Company | 4,150,000 | 4,150,000 | ||||||
Gainesville, FL, General Obligation Notes: | ||||||||
Series C, TECP, 1.69%, 5/2/2019 | 11,000,000 | 11,000,000 | ||||||
Series A, TECP, 1.83%, 6/3/2019 | 5,500,000 | 5,500,000 | ||||||
Miami-dade County, FL, Seaport Revenue, Series A, 2.3%*, 5/7/2019, LOC: PNC Bank NA | 925,000 | 925,000 | ||||||
Palm Beach County, FL, Henry Morrison Flagler Project Revenue, 2.4%*, 5/7/2019, LOC: Northern Trust Company | 1,300,000 | 1,300,000 | ||||||
Sarasota County, FL, State Revenue Planned Parenthood, Inc. Project, 2.4%*, 5/7/2019, LOC: BMO Harris Bank NA | 5,230,000 | 5,230,000 | ||||||
|
| |||||||
30,105,000 |
The accompanying notes are an integral part of the financial statements.
20 | | | Cash Account Trust — Service Shares |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Georgia 7.2% | ||||||||
Atlanta City, GA, Second Lien Airport Passanger Facility Charge & Third Lien Airport General Revenue,Series 2016 H-3, TECP, 2.05%, 5/31/2019 | 200,000 | 200,000 | ||||||
Atlanta City, GA, Airport General Revenue, Series 2016H-1, TECP, 2.05%, 5/31/2019 | 230,000 | 230,000 | ||||||
Atlanta City, GA, Second Lien Airport Passanger Facility Charge & Third Lien Airport General Revenue, SeriesH-3: | ||||||||
TECP, 1.83%, 5/31/2019 | 137,000 | 137,000 | ||||||
TECP, 1.9%, 5/31/2019 | 234,000 | 234,000 | ||||||
City of Atlanta, GA, Airport General Revenue: | ||||||||
SeriesF-3, TECP, 1.95%, 7/2/2019 | 200,000 | 200,000 | ||||||
Series-F-1, TECP, 1.95%, 7/2/2019 | 200,000 | 200,000 | ||||||
Georgia, General Obligation Notes, Series85-A, TECP, 1.78%, 6/5/2019 | 12,500,000 | 12,500,000 | ||||||
Georgia, Tender Option Bond Trust Receipts,Series 2018-XF0709, 144A, 2.4%*, 5/7/2019, LIQ: JPMorgan Chase Bank NA | 6,800,000 | 6,800,000 | ||||||
Monroe County, GA, Development Authority Pollution Control Revenue, Oglethorpe Power Corp., Series A, 2.34%*, 5/7/2019, LOC: Bank of Montreal | 450,000 | 450,000 | ||||||
|
| |||||||
20,951,000 | ||||||||
Idaho 1.7% | ||||||||
Idaho, State Health Facilities Authority, Hospital Revenue, Trinity Health Credit Group, Series ID, 1.7%**, 12/1/2048 | 5,000,000 | 5,000,000 | ||||||
Illinois 10.3% | ||||||||
Channahon, IL, Morris Hospital Revenue, 2.31%*, 5/7/2019, LOC: U.S. Bank NA | 4,005,000 | 4,005,000 | ||||||
Illinois, Educational Facilities Authority, Chicago Zoological Society, Series B, 2.4%*, 5/7/2019, LOC: Northern Trust Company | 3,955,000 | 3,955,000 | ||||||
Illinois, Southwestern Development Authority Solid Waste Disposal Revenue, Waste Management, Inc., Project, AMT, 2.35%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 400,000 | 400,000 | ||||||
Illinois, State Development Finance Authority, Chicago Horticultural, 2.3%*, 5/7/2019, LOC: BMO Harris Bank NA | 2,600,000 | 2,600,000 | ||||||
Illinois, State Development Finance Authority, Ignatius College Project, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 2,000,000 | 2,000,000 | ||||||
Illinois, State Development Finance Authority, Industrial Development Revenue, Series A, AMT, 2.37%*, 5/7/2019, LOC: BMO Harris Bank NA | 565,000 | 565,000 | ||||||
Illinois, State Development Finance Authority, Jewish Council Youth Services, 2.31%*, 5/7/2019, LOC: BMO Harris Bank NA | 1,400,000 | 1,400,000 |
The accompanying notes are an integral part of the financial statements.
Cash Account Trust — Service Shares | | | 21 |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Illinois, State Development Finance Authority, St. Ignatius College Preparatory, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 3,850,000 | 3,850,000 | ||||||
Illinois, State Development Finance Authority, YMCA Metropolitan Chicago Project, 2.15%*, 5/7/2019, LOC: BMO Harris Bank NA | 1,000,000 | 1,000,000 | ||||||
Illinois, State Educational Facilities Authority Revenue, The Adler Planetarium, 2.26%*, 5/7/2019, LOC: PNC Bank NA | 1,100,000 | 1,100,000 | ||||||
Illinois, State Educational Facilities Authority, National Louis University, Series B, 2.3%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 190,000 | 190,000 | ||||||
Illinois, State Finance Authority Revenue, North Park University Project, 2.15%*, 5/7/2019, LOC: U.S. Bank NA | 1,900,000 | 1,900,000 | ||||||
Illinois, State Finance Authority Revenue, Uhlich Children’s Advantage Network, 2.31%*, 5/7/2019, LOC: U.S. Bank NA | 1,885,000 | 1,885,000 | ||||||
Illinois, State Housing Development Authority, Multi-Family Housing Revenue, 2.44%*, 5/7/2019, LIQ: Freddie Mac, LOC: Freddie Mac | 4,325,000 | 4,325,000 | ||||||
University of Illinois: | ||||||||
2.15%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 330,000 | 330,000 | ||||||
2.42%*, 5/7/2019, LOC: Wells Fargo Bank NA | 425,000 | 425,000 | ||||||
|
| |||||||
29,930,000 | ||||||||
Indiana 2.6% | ||||||||
Elkhart County, IN, Multy-Family Revenue, Ashton Pines Apartments, Series A, 2.35%*, 5/7/2019, LOC: Federal Home Loan Bank | 500,000 | 500,000 | ||||||
Indiana, State Finance Authority, Health Systems Revenue, Sisters of St. Francis Health, Series F, 2.32%*, 5/7/2019, LOC: Bank of NY Mellon | 2,900,000 | 2,900,000 | ||||||
Rockport, IN, Pollution Control Revenue, AEP Generating Co., Series B, 2.42%*, 5/7/2019, LOC: BankTokyo-Mitsubishi UFJ | 4,175,000 | 4,175,000 | ||||||
|
| |||||||
7,575,000 | ||||||||
Iowa 1.1% | ||||||||
Iowa, State Finance Authority Midwestern Disaster Area Revenue, 2.35%*, 5/7/2019 | 405,000 | 405,000 | ||||||
Iowa, State Finance Authority, Economic Development Revenue, Series A, 2.34%*, 5/7/2019 | 300,000 | 300,000 | ||||||
Iowa, State Finance Authority, Single Family Mortgage Revenue, Mortgage Backed Securities Program: | ||||||||
Series D, 2.34%*, 5/7/2019, SPA: Federal Home Loan Bank | 1,550,000 | 1,550,000 | ||||||
Series E, 2.34%*, 5/7/2019, SPA: Federal Home Loan Bank | 855,000 | 855,000 | ||||||
|
| |||||||
3,110,000 |
The accompanying notes are an integral part of the financial statements.
22 | | | Cash Account Trust — Service Shares |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Kansas 0.3% | ||||||||
Olathe, KS, Industrial Revenue, Multi Modal Diamant Boart, Series A, AMT, 2.46%*, 5/7/2019, LOC: Svenska Handelsbanken | 1,000,000 | 1,000,000 | ||||||
Kentucky 0.7% | ||||||||
Boone County, KY, Pollution Control Revenue, Duke Energy Kentucky, Inc., 2.37%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 300,000 | 300,000 | ||||||
Louisville & Jefferson County, KY, Regional Airport Authority, UPS Worldwide Forwarding, Series C, AMT, 2.34%*, 5/1/2019 | 1,800,000 | 1,800,000 | ||||||
|
| |||||||
2,100,000 | ||||||||
Louisiana 0.2% | ||||||||
Louisiana, State Housing Finance Agency, Centerbury House Apartments, 2.31%*, 5/7/2019, LOC: Fannie Mae | 550,000 | 550,000 | ||||||
Maryland 0.2% | ||||||||
Maryland, State Health & Higher Educational Facilities Authority Revenue, Gaudenzia Foundation, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 500,000 | 500,000 | ||||||
Massachusetts 2.1% | ||||||||
Massachusetts, Tender Option Bond Trust Receipts, Series 2015-XF2203, 144A, 2.32%*, 5/7/2019, LIQ: Citibank NA | 2,300,000 | 2,300,000 | ||||||
Massachusetts, University of Massachusetts, Building Authority Revenue, Series 2, MUNIPSA + 0.300%, 2.6%**, 11/1/2034 | 3,900,000 | 3,900,000 | ||||||
|
| |||||||
6,200,000 | ||||||||
Michigan 1.8% | ||||||||
Michigan, Kent Hospital Finance Authority Revenue, Spectrum Health System, Series C, 2.4%*, 5/7/2019, LOC: Bank of NY Mellon | 290,000 | 290,000 | ||||||
University of Michigan, General Obligation Notes, SeriesK-1, TECP, 1.83%, 6/3/2019 | 5,000,000 | 5,000,000 | ||||||
|
| |||||||
5,290,000 | ||||||||
Mississippi 3.3% | ||||||||
Mississippi, State Business Finance Commission, Gulf Opportunity Zone, Chevron U.S.A., Inc.: | ||||||||
Series F, 2.3%*, 5/7/2019, GTY: Chevron Corp. | 50,000 | 50,000 | ||||||
Series A, 2.44%*, 5/7/2019, GTY: Chevron Corp. | 9,505,000 | 9,505,000 | ||||||
Series B, 2.44%*, 5/7/2019, GTY: Chevron Corp. | 200,000 | 200,000 | ||||||
|
| |||||||
9,755,000 |
The accompanying notes are an integral part of the financial statements.
Cash Account Trust — Service Shares | | | 23 |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Missouri 1.1% | ||||||||
Missouri, Tender Option Bond Trust Receipts,Series 2015-XF2198, 144A, 2.33%*, 5/7/2019, LIQ: Citibank NA | 2,660,000 | 2,660,000 | ||||||
St. Louis County, MO, Industrial Development Authority, Educational Whitefield School, Inc., Series B, 2.4%*, 5/7/2019, LOC: U.S. Bank NA | 450,000 | 450,000 | ||||||
|
| |||||||
3,110,000 | ||||||||
Nevada 2.7% | ||||||||
Clark County, NV, Airport Systems Revenue, SeriesD-1, 2.4%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 6,755,000 | 6,755,000 | ||||||
Nevada, State Housing Division, Sonoma Palms LP, AMT, 2.32%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 1,100,000 | 1,100,000 | ||||||
|
| |||||||
7,855,000 | ||||||||
New York 5.1% | ||||||||
New York, State Energy Research & Development Authority Facilities Revenue, Consolidated Edison Co., SeriesC-2, AMT, 2.45%*, 5/7/2019, LOC: Mizuho Bank Ltd. | 690,000 | 690,000 | ||||||
New York, State Thruway Authority Revenue,Series 2016-XF2345, 144A, 2.33%*, 5/7/2019, LIQ: Credit Suisse | 1,865,000 | 1,865,000 | ||||||
New York City, NY, Industrial Development Agency, Civic Facility Revenue, Jamaica First Parking LLC Project, 2.32%*, 5/7/2019, LOC: TD Bank NA | 1,185,000 | 1,185,000 | ||||||
New York City, NY, Municipal Finance Authority, Water & Sewer Systems Revenue, SeriesF-2, 2.13%*, 5/7/2019, SPA: JPMorgan Chase Bank NA | 3,470,000 | 3,470,000 | ||||||
New York City, NY, Municipal Water Finance Authority, Water & Sewer Systems Revenue, Second Generation Resolution, SeriesBB-1, 2.38%*, 5/7/2019, SPA: IND & Commercial Bank of China BA | 5,750,000 | 5,750,000 | ||||||
New York City, NY, Transitional Finance Authority Revenue, Future Tax Secured, SeriesA-2A, 2.3%*, 5/2/2019, LOC: Bank Tokyo-Mitsubishi UFJ | 825,000 | 825,000 | ||||||
New York, NY, General Obligation, SeriesJ-6, 2.32%*, 5/1/2019, LOC: Landesbank Hessen-Thuringen | 830,000 | 830,000 | ||||||
New York, NY, State General Obligation, SeriesA-3, 2.31%*, 5/1/2019, SPA: Landesbank Hessen-Thuringen | 175,000 | 175,000 | ||||||
Westchester County, NY, Industrial Development Agency, Civic Facility Revenue, Jewish Project, 2.3%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 100,000 | 100,000 | ||||||
|
| |||||||
14,890,000 |
The accompanying notes are an integral part of the financial statements.
24 | | | Cash Account Trust — Service Shares |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
North Carolina 0.9% | ||||||||
North Carolina, State Capital Facilities Finance Agency Student Revenue, Housing NCA&T University Foundation Project, Series B, 2.37%*, 5/7/2019, INS: AGC, LOC: PNC Bank NA | 2,575,000 | 2,575,000 | ||||||
Ohio 6.6% | ||||||||
Cuyahoga County, OH, Health Care Facilities Revenue, AM McGregor Home Project, 2.38%*, 5/7/2019, LOC: Northern Trust Company | 12,400,000 | 12,400,000 | ||||||
Franklin County, OH, Trinity Health Credit Group, 1.7%**, 12/1/2046 | 5,000,000 | 5,000,000 | ||||||
Hamilton County, OH, Economic Development Revenue, St Xavier High School Project, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 1,695,000 | 1,695,000 | ||||||
|
| |||||||
19,095,000 | ||||||||
Oklahoma 1.3% | ||||||||
Oklahoma, Tender Option Bond Trust Floaters,Series 2018-XM0708, 144A, AMT, 2.48%*, 5/7/2019, LIQ: JPMorgan Chase Bank NA | 3,750,000 | 3,750,000 | ||||||
Pennsylvania 4.4% | ||||||||
Butler County, PA, General Authority Revenue, School District Project, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 1,500,000 | 1,500,000 | ||||||
Lancaster, PA, Industrial Development Authority, Willow Valley Retirement, Series C, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 2,500,000 | 2,500,000 | ||||||
Pennsylvania, State Economic Development Financing Authority Revenue, Hawley Silk Mill LLC, Recovery Zone Facility, Series A1, 2.39%*, 5/7/2019, LOC: PNC Bank NA | 300,000 | 300,000 | ||||||
Pennsylvania, Tender Option Bond Trust, Series 2019-ZF2779, 2.33%*, 5/7/2019, LIQ: Barclays Bank PLC | 1,500,000 | 1,500,000 | ||||||
Philadelphia, PA, Airport Revenue, SeriesB-2, TECP, 1.72%, 5/31/2019 | 7,000,000 | 7,000,000 | ||||||
|
| |||||||
12,800,000 | ||||||||
Rhode Island 0.2% | ||||||||
Rhode Island, State Health & Educational Building Corp., Higher Education Facility Revenue, Roger Williams University, Series A, 2.18%*, 5/7/2019, LOC: U.S. Bank NA | 520,000 | 520,000 | ||||||
South Carolina 0.1% | ||||||||
North Charleston, SC, Certificates of Participation, 2.26%*, 5/7/2019, LOC: Bank of America NA | 355,000 | 355,000 |
The accompanying notes are an integral part of the financial statements.
Cash Account Trust — Service Shares | | | 25 |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
South Dakota 0.7% | ||||||||
South Dakota, State Health & Educational Facilities Authority, Sioux Valley Hospital & Health: | ||||||||
Series B, 2.15%*, 5/7/2019, LOC: U.S. Bank NA | 425,000 | 425,000 | ||||||
Series C, 2.15%*, 5/7/2019, LOC: U.S. Bank NA | 1,485,000 | 1,485,000 | ||||||
|
| |||||||
1,910,000 | ||||||||
Tennessee 0.3% | ||||||||
Loudon, TN, Industrial Development Board, Pollution Control Revenue, 2.4%*, 5/7/2019, LOC: Citibank NA | 300,000 | 300,000 | ||||||
Shelby County, TN, Health Educational & Housing Facilities Board, Multi-Family Housing Revenue, 2.4%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 600,000 | 600,000 | ||||||
|
| |||||||
900,000 | ||||||||
Texas 7.7% | ||||||||
Austin, TX, Water & Wastewater Systems Revenue, 2.32%*, 5/7/2019, LOC: Barclays Bank PLC | 2,225,000 | 2,225,000 | ||||||
Harris County, TX, Houston Port Authority: | ||||||||
1.66%, 5/16/2019 | 3,600,000 | 3,600,000 | ||||||
1.74%, 6/6/2019 | 205,000 | 205,000 | ||||||
1.8%, 6/6/2019 | 5,500,000 | 5,500,000 | ||||||
Houston, TX, Utility Systems Revenue, First Lien, SeriesB-5, 2.32%*, 5/7/2019, LOC: Wells Fargo Bank NA | 590,000 | 590,000 | ||||||
Houston, TX, General Obligation Notes, SeriesE-1, TECP, 1.71%, 6/25/2019 | 2,000,000 | 2,000,000 | ||||||
Tarrant County, TX, Cultural Educational Facilities Finance Corp. Revenue, Christus Health Obligated Group,Series C-2, 2.4%*, 5/7/2019, LOC: Bank of NY Mellon | 850,000 | 850,000 | ||||||
Tarrant County, TX, Housing Finance Corp., Multifamily Housing Gateway Apartments, 2.4%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 375,000 | 375,000 | ||||||
Texas, State Variable Veternas: | ||||||||
Series B, 2.15%*, 5/7/2019, SPA: Federal Home Loan Bank | 490,000 | 490,000 | ||||||
Series C, 2.44%*, 5/7/2019, SPA: LandesbankHessen-Thuringen | 445,000 | 445,000 | ||||||
Texas, Tender Option Bond Trust Receipts,Series 2015-XF2201, 144A, 2.33%*, 5/7/2019, LIQ: Citibank NA | 3,100,000 | 3,100,000 | ||||||
Texas State, Tax & Revenue Anticipation Notes, 4.0%, 8/29/2019 | 3,000,000 | 3,019,647 | ||||||
|
| |||||||
22,399,647 | ||||||||
Vermont 0.1% | ||||||||
Vermont, State Educational & Health Buildings Financing Agency Revenue, Hospital Fletcher Allen, Series A, 2.39%*, 5/7/2019, LOC: TD Bank North NA | 400,000 | 400,000 |
The accompanying notes are an integral part of the financial statements.
26 | | | Cash Account Trust — Service Shares |
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Principal Amount ($) | Value ($) | |||||||
Virginia 0.4% | ||||||||
Loudoun County, VA, Industrial Development Authority Revenue, Jack Kent Cooke Foundation Project, 2.3%*, 5/7/2019, LOC: Northern Trust Company | 650,000 | 650,000 | ||||||
Salem, VA, Industrial Development Authority, Multi-Family Housing Revenue, Oak Park Apartments Project, 2.3%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 535,000 | 535,000 | ||||||
|
| |||||||
1,185,000 | ||||||||
Washington 0.8% | ||||||||
King County, WA, Sewer Revenue, Junior Lien, Series A, 2.4%*, 5/7/2019, LOC: Landesbank Hessen-Thuringen | 530,000 | 530,000 | ||||||
Olympia, WA, Economic Development Corp., Spring Air Northwest Project, AMT, 2.38%*, 5/7/2019, LOC: U.S. Bank NA | 960,000 | 960,000 | ||||||
Washington, State Housing Finance Commission, Panorma City Project, 2.4%*, 5/7/2019, LOC: Wells Fargo Bank NA | 490,000 | 490,000 | ||||||
Washington, State Housing Finance Commission, Vintage of Central Airports Project, 2.42%*, 5/7/2019, LIQ: Freddie Mac, LOC: Freddie Mac | 325,000 | 325,000 | ||||||
|
| |||||||
2,305,000 | ||||||||
Wisconsin 3.9% | ||||||||
Wisconsin, Whitewater Community Development Authority, Housing Preservation, 2.31%*, 5/7/2019, LOC: BMO Harris Bank NA | 7,455,000 | 7,455,000 | ||||||
Wisconsin, State General Obligation, Series05-A, TECP, 1.77%, 6/6/2019 | 1,800,000 | 1,800,000 | ||||||
Wisconsin, State Health & Education Facilities Authority, Ascension Health Alliance Senor Group, SeriesB-2, 4.0%*, 11/15/2043 | 1,545,000 | 1,547,870 | ||||||
Wisconsin, State Health & Educational Facilities Authority Revenue, Mequon Jewish Project, 2.4%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 475,000 | 475,000 | ||||||
|
| |||||||
11,277,870 | ||||||||
Other 2.6% | ||||||||
Federal Home Loan Mortgage Corp., Multi-Family Variable Rate Certificates: | ||||||||
“A”, Series MO27, 2.32%*, 5/7/2019, LIQ: Freddie Mac | 2,815,000 | 2,815,000 | ||||||
“A”, Series M031, 2.33%*, 5/7/2019, LIQ: Freddie Mac | 2,960,000 | 2,960,000 | ||||||
Series M033, 2.33%*, 5/7/2019, LIQ: Freddie Mac | 815,000 | 815,000 | ||||||
“A”, Series M015, AMT, 2.35%*, 5/7/2019, LIQ: Freddie Mac | 1,065,000 | 1,065,000 | ||||||
|
| |||||||
7,655,000 | ||||||||
Total Municipal Investments(Cost $276,264,630) | 276,264,630 |
The accompanying notes are an integral part of the financial statements.
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Principal Amount ($) | Value ($) | |||||||
Preferred Shares ofClosed-End Investment Companies 4.8% |
| |||||||
California | ||||||||
California, Nuveen Dividend Advantage Municipal Fund, Series1-1362, 144A, AMT, 2.43%*, 5/7/2019, LIQ: Societe Generale | 9,000,000 | 9,000,000 | ||||||
California, Nuveen Dividend Advantage Municipal Fund, Series 6, 144A, AMT, 2.43%*, 5/7/2019, LIQ: Citibank NA | 1,500,000 | 1,500,000 | ||||||
California, Nuveen Quality Municipal Income Fund, Series 7, 144A, AMT, 2.44%*, 5/7/2019, LIQ: Royal Bank of Canada | 3,500,000 | 3,500,000 | ||||||
| ||||||||
Total Preferred Shares ofClosed-End Investment Companies |
| 14,000,000 | ||||||
% of Net Assets | Value ($) | |||||||
Total Investment Portfolio(Cost $290,264,630) | 99.6 | 290,264,630 | ||||||
Other Assets and Liabilities, Net | 0.4 | 1,284,563 | ||||||
| ||||||||
Net Assets | 100.0 | 291,549,193 |
* | Variable rate demand notes and variable rate demand preferred shares are securities whose interest rates are reset periodically (usually daily mode or weekly mode) by remarketing agents based on current market levels, and are not directly set as a fixed spread to a reference rate. These securities may be redeemed at par by the holder at any time, and are shown at their current rates as of April 30, 2019. Date shown reflects the earlier of demand date or stated maturity date. |
** | Floating rate security. These securities are shown at their current rate as of April 30, 2019. |
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.
AGC: Assured Guaranty Corp.
AMT: Subject to alternative minimum tax.
GTY: Guaranty Agreement
LIQ: Liquidity Facility
LOC: Letter of Credit
MUNIPSA: SIFMA Municipal Swap Index Yield
SPA: Standby Bond Purchase Agreement
TECP: Tax Exempt Commercial Paper
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Securities held by the Fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
The accompanying notes are an integral part of the financial statements.
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The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Municipal Investments (a) | $ | — | $ | 276,264,630 | $ | — | $ | 276,264,630 | ||||||||
Preferred Shares ofClosed-End Investment Companies | — | 14,000,000 | — | 14,000,000 | ||||||||||||
Total | $ | — | $ | 290,264,630 | $ | — | $ | 290,264,630 |
(a) | See Investment Portfolio for additional detailed categorizations. |
The accompanying notes are an integral part of the financial statements.
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Statement of Assets and Liabilities
as of April 30, 2019 | ||||
Assets | | DWS Tax-Exempt Portfolio | ||
Investments in securities, valued at amortized cost | $ | 290,264,630 | ||
Cash | 17,977 | |||
Receivable for investments sold | 200,000 | |||
Receivable for Fund shares sold | 186,784 | |||
Interest receivable | 1,254,804 | |||
Other assets | 58,489 | |||
Total assets | 291,982,684 | |||
Liabilities | ||||
Payable for Fund shares redeemed | 158,192 | |||
Distributions payable | 59,128 | |||
Accrued Trustees’ fees | 4,011 | |||
Other accrued expenses and payables | 212,160 | |||
Total liabilities | 433,491 | |||
Net assets, at value | $ | 291,549,193 | ||
Net Assets Consist of | ||||
Distributable earnings (loss) | (50,568 | ) | ||
Paid-in capital | 291,599,761 | |||
Net assets, at value | $ | 291,549,193 |
The accompanying notes are an integral part of the financial statements.
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Statement of Assets and Liabilitiesas of April 30, 2019 (continued) |
Net Asset Value | | DWS Tax-Exempt Portfolio | | |
DWSTax-Exempt Cash Premier Shares | ||||
Net Asset Value, offering and redemption price per share ($49,478,536 ÷ 49,454,148 outstanding shares of beneficial interest, | $ | 1.00 | ||
DWSTax-Exempt Money Fund | ||||
Net Asset Value, offering and redemption price per share ($124,352,933 ÷ 124,291,658 outstanding shares of beneficial interest, | $ | 1.00 | ||
DWSTax-Free Money Fund Class S | ||||
Net Asset Value, offering and redemption price per share ($51,658,888 ÷ 51,633,423 outstanding shares of beneficial interest, | $ | 1.00 | ||
Service Shares | ||||
Net Asset Value, offering and redemption price per share ($13,841,671 ÷ 13,834,843 outstanding shares of beneficial interest, | $ | 1.00 | ||
Tax-Exempt Cash Managed Shares | ||||
Net Asset Value, offering and redemption price per share ($45,759,204 ÷ 45,736,619 outstanding shares of beneficial interest, | $ | 1.00 | ||
Tax-Free Investment Class | ||||
Net Asset Value, offering and redemption price per share ($6,457,961 ÷ 6,454,777 outstanding shares of beneficial interest, | $ | 1.00 |
The accompanying notes are an integral part of the financial statements.
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for the year ended April 30, 2019 |
| |||
Investment Income | | DWS Tax-Exempt Portfolio | | |
Income: | ||||
Interest | $ | 4,696,916 | ||
Expenses: | ||||
Management fee | 231,341 | |||
Administration fee | 303,403 | |||
Services to shareholders | 218,706 | |||
Distribution and service fees | 260,297 | |||
Custodian fee | 11,040 | |||
Professional fees | 119,852 | |||
Reports to shareholders | 114,292 | |||
Registration fees | 123,397 | |||
Trustees’ fees and expenses | 14,414 | |||
Other | 68,666 | |||
Total expenses before expense reductions | 1,465,408 | |||
Expense reductions | (447,709 | ) | ||
Total expenses after expense reductions | 1,017,699 | |||
Net investment income | 3,679,217 | |||
Net realized gain (loss) from investments | 16,792 | |||
Net increase (decrease) in net assets resulting from operations | $ | 3,696,009 |
The accompanying notes are an integral part of the financial statements.
32 | | | Cash Account Trust — Service Shares |
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Statements of Changes in Net Assets
DWSTax-Exempt Portfolio | ||||||||
Years Ended April 30, | ||||||||
Increase (Decrease) in Net Assets | 2019 | 2018 | ||||||
Operations: | ||||||||
Net investment income | $ | 3,679,217 | $ | 2,423,950 | ||||
Net realized gain (loss) | 16,792 | 2,158 | ||||||
Net increase in net assets resulting from operations | 3,696,009 | 2,426,108 | ||||||
Distributions to shareholders: | ||||||||
DWSTax-Exempt Cash Premier Shares | (554,487 | ) | (430,286 | ) | ||||
DWSTax-Exempt Money Fund | (1,689,303 | ) | (1,163,840 | ) | ||||
DWSTax-Free Money Fund Class S | (640,705 | ) | (413,013 | ) | ||||
Service Shares | (115,693 | ) | (36,384 | ) | ||||
Tax-Exempt Cash Managed Shares | (607,973 | ) | (364,721 | ) | ||||
Tax-Free Investment Class | (58,355 | ) | (28,399 | ) | ||||
Total distributions | (3,666,516 | ) | (2,436,643 | )* | ||||
Fund share transactions: | ||||||||
Proceeds from shares sold | 459,762,725 | 550,268,409 | ||||||
Reinvestment of distributions | 2,971,761 | 1,998,663 | ||||||
Payments for shares redeemed | (485,955,370 | ) | (576,644,724 | ) | ||||
Net increase (decrease) in net assets from Fund share transactions | (23,220,884 | ) | (24,377,652 | ) | ||||
Increase (decrease) in net assets | (23,191,391 | ) | (24,388,187 | ) | ||||
Net assets at beginning of period | 314,740,584 | 339,128,771 | ||||||
Net assets at end of period | $ | 291,549,193 | $ | 314,740,584 | ** |
* | Includes distributions from net investment income. |
** | Includes distributions in excess of net investment income of $47,775 |
The accompanying notes are an integral part of the financial statements.
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DWSTax-Exempt Portfolio
Service Shares
Years Ended April 30, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Selected Per Share Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | .005 | .001 | .001 | .000 | * | .000 | * | |||||||||||||
Net realized gain (loss) | .000 | * | .000 | * | (.000 | )* | .000 | * | .000 | * | ||||||||||
Total from investment operations | .005 | .001 | .001 | .000 | * | .000 | * | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (.005 | ) | (.001 | ) | (.001 | ) | (.000 | )* | (.000 | )* | ||||||||||
Net realized gains | — | — | (.000 | )* | (.000 | )* | (.000 | )* | ||||||||||||
Total distributions | (.005 | ) | (.001 | ) | (.001 | ) | (.000 | )* | (.000 | )* | ||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Total Return (%)a | .50 | .07 | .10 | .02 | .03 | |||||||||||||||
Ratios to Average Net Assets and Supplemental Data |
| |||||||||||||||||||
Net assets, end of period ($ millions) | 14 | 42 | 40 | 49 | 48 | |||||||||||||||
Ratio of expenses before expense reductions (%) | 1.18 | 1.15 | 1.11 | 1.07 | 1.06 | |||||||||||||||
Ratio of expenses after expense reductions (%) | 1.05 | 1.00 | .64 | .14 | .10 | |||||||||||||||
Ratio of net investment income (%) | .43 | .07 | .02 | .01 | .01 |
a | Total return would have been lower had certain expenses not been reduced. |
* | Amount is less than $.0005. |
The accompanying notes are an integral part of the financial statements.
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A. 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 anopen-end management investment company organized as a Massachusetts business trust.
The Trust offers two funds: DWS Government & Agency Securities Portfolio (formerly Deutsche Government & Agency Securities Portfolio) and DWSTax-Exempt Portfolio (formerly DeutscheTax-Exempt Portfolio) (each a “Fund” and together, the “Funds”). These financial statements report on DWS Government & Agency Securities Portfolio and DWSTax-Exempt Portfolio.
DWS Government & Agency Securities Portfolio offers four classes of shares: DWS Government & Agency Money Fund (formerly Deutsche Government & Agency Money Fund), DWS Government Cash Institutional Shares (formerly Government Cash Institutional Shares), Government Cash Managed Shares and Service Shares.
DWSTax-Exempt Portfolio offers six classes of shares: DWSTax-Exempt Cash Premier Shares (formerly DeutscheTax-Exempt Cash Premier Shares), DWSTax-Exempt Money Fund (formerly DeutscheTax-Exempt Money Fund), DWSTax-Free Money Fund Class S (formerly DeutscheTax-Free Money Fund Class), Service Shares,Tax-Exempt Cash Managed Shares andTax-Free Investment Class.
The financial highlights for all classes of shares, other than Service Shares, are provided separately and are available upon request.
Each Fund’s investment income, realized gains and losses, and certainFund-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 Fund, except that each class bears certain expenses unique to that class such as distribution and service fees, services to shareholders and certain otherclass-specific expenses. Differences inclass-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 toclass-specific arrangements.
Each Fund’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which require the use of management estimates. Actual results could differ from those estimates. Each Fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of U.S. GAAP. The policies described below are followed consistently by the Funds in the preparation of their financial statements.
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In October 2018, the Securities and Exchange Commission adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification, which is intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. Effective with the current reporting period, the Funds adopted the amendments with the impacts being that each Fund is no longer required to present components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributable earnings and the amount of undistributed net investment income on the Statements of Changes in Net Assets.
Security Valuation. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The Funds value all securities utilizing the amortized cost method permitted in accordance with Rule2a-7 under the 1940 Act and certain conditions therein. Under this method, which does not take into account unrealized capital gains or losses on securities, an instrument is initially valued at its cost and thereafter assumes a constant accretion/amortization rate to maturity of any discount or premium. Securities held by the Fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
Disclosure about the classification of fair value measurements is included in a table following each Fund’s Investment Portfolio.
Repurchase Agreements. Each Fund may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with certain banks and broker/dealers whereby each Fund, through its custodian or asub-custodian bank, receives delivery of the underlying securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the market value is equal to at least the principal amount of the repurchase price plus accrued interest. The custodial bank or another designated subcustodian 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
36 | | | Cash Account Trust — Service Shares |
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day. If the financial institution either fails to deposit the required additional collateral or fails to repurchase the securities as agreed, the Funds have the right to sell the securities and recover any resulting loss from the financial institution. If the financial institution enters into bankruptcy, the Funds’ claims on the collateral may be subject to legal proceedings.
As of April 30, 2019, DWS Government & Agency Securities Portfolio held repurchase agreements with a gross value of $1,176,458,000. The value of the related collateral exceeded the value of the repurchase agreements at period end. The detail of the related collateral is included in the footnotes following DWS Government & Agency Securities Portfolio’s Investment Portfolio.
Federal Income Taxes. Each of the Funds’ 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 andtax-exempt income to its shareholders.
At April 30, 2019, DWS Government & Agency Securities Portfolio had a net tax basis capital loss carryforward of approximately $56,000 of short-term losses, which may be applied against any realized net taxable capital gains indefinitely.
At April 30, 2019, DWSTax-Exempt Portfolio had a net tax basis capital loss carryforward of approximately $15,000, which may be applied against any realized net taxable capital gains indefinitely.
The Funds have reviewed the tax positions for the open tax years as of April 30, 2019 and have determined that no provision for income tax and/or uncertain tax positions is required in the Funds’ financial statements. The Funds’ 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 Fund is declared as a daily dividend and is distributed to shareholders monthly. Each Fund may take into account capital gains and losses in its daily dividend declarations. Each Fund may also make additional distributions for tax purposes if necessary.
Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Temporary book and tax basis differences will reverse in a subsequent period. There were nobook-to-tax differences for the Funds.
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At April 30, 2019, the Funds’ components of distributable earnings (accumulated losses) on a tax basis are as follows:
DWS Government & Agency Securities Portfolio: | ||||
Undistributed ordinary income* | $ | 3,798,631 | ||
Capital loss carryforwards | $ | (56,000 | ) | |
DWSTax-Exempt Portfolio: | ||||
Undistributed tax-exempt income | $ | 24,054 | ||
Capital loss carryforwards | $ | (15,000 | ) |
At April 30, 2019, DWS Government & Agency Securities Portfolio had an aggregate cost of investments for federal income tax purposes of $2,724,932,000.
At April 30, 2019, DWSTax-Exempt Portfolio had an aggregate cost of investments for federal income tax purposes of $290,264,630.
In addition, the tax character of distributions paid to shareholders by each Fund is summarized as follows:
Years Ended April 30, | ||||||||
Portfolio | 2019 | 2018 | ||||||
DWS Government & Agency Securities Portfolio: | ||||||||
Distributions from ordinary income* | $ | 67,942,948 | $ | 49,931,836 | ||||
DWSTax-Exempt Portfolio: | ||||||||
Distributions fromtax-exempt income | $ | 3,666,516 | $ | 2,436,643 |
* | For tax purposes,short-term capital gain distributions are considered ordinary income distributions. |
Expenses.Expenses of the Trust arising in connection with a specific Fund are allocated to that Fund. Other Trust expenses which cannot be directly attributed to a Fund are apportioned pro rata on the basis of relative net assets among the Funds in the Trust.
Contingencies.In the normal course of business, the Funds may enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds’ that have not yet been made. However, based on experience, the Funds expect the risk of loss to be remote.
Other.Investment transactions are accounted for on trade date. Interest income is recorded on the accrual basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. All discounts and premiums are accreted/amortized for both tax and financial reporting purposes.
38 | | | Cash Account Trust — Service Shares |
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B. Related Parties
Management Agreement. Under an Amended and Restated Investment Management Agreement with DWS Investment Management Americas, Inc. (formerly Deutsche Investment Management Americas Inc.) (“DIMA” or the “Advisor”), an indirect, wholly owned subsidiary of DWS Group GmbH & Co. KGaA (“DWS Group”), the Advisor directs the investments of DWS Government & Agency Securities Portfolio and DWSTax-Exempt Portfolio 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 Fund.
The monthly management fee for the funds is computed based on the combined average daily net assets of the two funds of the Trust and allocated to DWS Government & Agency Securities Portfolio and DWS Tax-Exempt Portfolio, respectively, based on their relative net assets, computed and accrued daily and payable monthly, at the following annual rates:
First $500 million of the Funds’ 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% |
Accordingly, for the year ended April 30, 2019, the fee pursuant to the Investment Management Agreement on DWS Government & Agency Securities Portfolio was equivalent to an annual rate (exclusive of any applicable waivers/reimbursements) of 0.08% of the Fund’s average daily net assets.
Accordingly, for the year ended April 30, 2019, the fee pursuant to the Investment Management Agreement on DWS Tax-Exempt Portfolio was equivalent to an annual rate (exclusive of any applicable waivers/reimbursements) of 0.08% of the Fund’s average daily net assets.
The Advisor has agreed to contractually reduce its management fee for the DWS Government & Agency Securities Portfolio such that the annual effective rate is limited to 0.05% of the DWS Government & Agency Securities Portfolio’s average daily net assets.
In addition, the Advisor has agreed to voluntarily waive additional expenses. The voluntary waiver may be changed or terminated at any time without notice. Under these arrangements, the Advisor waived certain expenses on Service Shares of DWS Government & Agency Securities Portfolio and DWSTax-Exempt Portfolio.
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The Advisor has also agreed to maintain expenses of certain other classes of the Trust. These rates are disclosed in the respective share classes’ annual reports that are provided separately and are available upon request.
For the year ended April 30, 2019, fees waived and/or expenses reimbursed for each class are as follows:
DWS Government & Agency Securities Portfolio: | ||||
DWS Government & Agency Money Fund | $ | 112,077 | ||
DWS Government Cash Institutional Shares | 2,202,358 | |||
Government Cash Managed Shares | 146,710 | |||
Service Shares | 16,434 | |||
$ | 2,477,579 |
DWSTax-Exempt Portfolio: | ||||
DWSTax-Exempt Cash Premier Shares | $ | 57,460 | ||
DWSTax-Exempt Money Fund | 202,120 | |||
DWSTax-Free Money Fund Class S | 68,543 | |||
Service Shares | 35,522 | |||
Tax-Exempt Cash Managed Shares | 75,471 | |||
Tax-Free Investment Class | 8,593 | |||
$ | 447,709 |
Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to DWS Government & Agency Securities Portfolio and DWSTax-Exempt Portfolio. For all services provided under the Administrative Services Agreement, each of these two Funds pays the Advisor an annual fee (“Administration Fee”) of 0.10% of each of these two Funds’ average daily net assets, computed and accrued daily and payable monthly. For the year ended April 30, 2019, the Administration Fee from DWS Government & Agency Securities Portfolio and DWSTax-Exempt Portfolio was as follows:
Fund | Administration Fee | Unpaid at April 30, 2019 | ||||||
DWS Government & Agency Securities Portfolio | $ | 3,452,936 | $ | 230,641 | ||||
DWSTax-Exempt Portfolio | $ | 303,403 | $ | 23,594 |
Service Provider Fees. DWS Service Company (“DSC”), an affiliate of the Advisor, is the transfer agent,dividend-paying agent and shareholder service agent for the Funds. Pursuant to asub-transfer agency agreement between DSC and DST Systems, Inc. (“DST”), DSC has delegated certain transfer agent,dividend-paying agent and shareholder service agent functions to DST. DSC compensates DST out of the shareholder servicing
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fee it receives from the Funds. For the year ended April 30, 2019, the amounts charged to the Funds by DSC were as follows:
DWS Government & Agency Securities Portfolio: | Total Aggregated | Unpaid at April 30, 2019 | ||||||
DWS Government & Agency Money Fund | $ | 65,246 | $ | 10,778 | ||||
DWS Government Cash Institutional Shares | 410,822 | 52,030 | ||||||
Government Cash Managed Shares | 129,450 | 25,490 | ||||||
Service Shares | 61,573 | 4,811 | ||||||
$ | 667,091 | $ | 93,109 | |||||
DWSTax-Exempt Portfolio: | Total Aggregated | Unpaid at April 30, 2019 | ||||||
DWS Tax-Exempt Cash Premier Shares | $ | 2,663 | $ | 690 | ||||
DWSTax-Exempt Money Fund | 36,405 | 6,015 | ||||||
DWSTax-Free Money Fund Class S | 29,938 | 4,955 | ||||||
Service Shares | 67,885 | 4,268 | ||||||
Tax-Exempt Cash Managed Shares | 31,160 | 3,758 | ||||||
Tax-Free Investment Class | 5,004 | 859 | ||||||
$ | 173,055 | $ | 20,545 |
In addition, for the year ended April 30, 2019, the amounts charged to each Fund for recordkeeping and other administrative services provided by unaffiliated third parties, included in the Statement of Operations under “Services to shareholders,” were as follows:
Sub-Recordkeeping | ||||
DWS Government & Agency Securities Portfolio: | Total Aggregated | |||
DWS Government & Agency Money Fund | $ | 63,805 |
DWSTax-Exempt Portfolio: | Total Aggregated | |||
DWSTax-Exempt Money Fund | $ | 18,316 | ||
DWSTax-Free Money Fund Class S | 978 | |||
$ | 19,294 |
Distribution Service Agreement. Under the Distribution Service Agreement, in accordance with Rule12b-1 under the 1940 Act, DWS Distributors, Inc. (“DDI”), 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.
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For the year ended April 30, 2019, the Distribution Fee was as follows:
DWS Government & Agency Securities Portfolio: | Distribution Fee | Unpaid at April 30, 2019 | Annual Rate | Contractual Rate | ||||||||||||
Service Shares | $ | 148,739 | $ | 6,881 | .60 | % | .60 | % | ||||||||
DWSTax-Exempt Portfolio: | Distribution Fee | Unpaid at April 30, 2019 | Annual Rate | Contractual Rate | ||||||||||||
Service Shares | $ | 161,991 | $ | 6,880 | .60 | % | .60 | % | ||||||||
Tax-Free Investment Class | 15,245 | 1,357 | .25 | % | .25 | % | ||||||||||
$ | 177,236 | $ | 8,237 |
In addition, DDI 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 aRule 12b-1 plan.
For the year ended April 30, 2019, the Service Fee was as follows:
DWS Government & Agency Securities Portfolio: | Service Fee | Unpaid at April 30, 2019 | Annual Rate | Contractual Rate | ||||||||||||
Government Cash Managed Shares | $ | 283,961 | $ | 22,991 | .15 | % | .15 | % | ||||||||
DWSTax-Exempt Portfolio: | Service Fee | Unpaid at April 30, 2019 | Annual Rate | Contractual Rate | ||||||||||||
Tax-Exempt Cash Managed Shares | $ | 78,792 | $ | 5,641 | .15 | % | .15 | % | ||||||||
Tax-Free Investment Class | 4,269 | 380 | .07 | % | .07 | % | ||||||||||
$ | 83,061 | $ | 6,021 |
Typesetting and Filing Service Fees. Under an agreement with the Funds, DIMA is compensated for providing certainpre-press and regulatory filing services to the Funds. For the year ended April 30, 2019, the amounts charged to the Funds by DIMA included in the Statement of Operations under “Reports to shareholders” were as follows:
Fund | Total Aggregated | Unpaid at April 30, 2019 | ||||||
DWS Government & Agency Securities Portfolio | $ | 29,934 | $ | 14,489 | ||||
DWSTax-Exempt Portfolio | $ | 47,887 | $ | 21,973 |
Trustees’ Fees and Expenses. The Funds paid retainer fees to each Trustee not affiliated with the Advisor, plus specified amounts to the Board Chairperson and to each committee Chairperson.
Transactions with Affiliates.The Funds may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is solely due to having a common investment adviser, common officers, or common trustees. During the year ended April 30, 2019, the DWSTax-Exempt Portfolio engaged in securities purchases of $422,475,000 and securities sales of $564,985,000 with an affiliated fund in compliance withRule 17a-7 under the 1940 Act.
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C. Line of Credit
The Funds and other affiliated funds (the “Participants”) share in a $400 million revolving credit facility provided by a syndication of banks. Each Fund 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 theone-month LIBOR exceeds the Federal Funds Rate, the amount of such excess. Each Fund may borrow up to a maximum of 33 percent of its net assets under the agreement. The Funds had no outstanding loans at April 30, 2019.
D. Fund Share Transactions
The following tables summarize share and dollar activity in the Funds:
DWS Government & Agency Securities Portfolio
Year Ended April 30, 2019 | Year Ended April 30, 2018 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Shares sold |
| |||||||||||||||
DWS Government & Agency Money Fund | 306,947,300 | $ | 306,947,300 | 143,710,246 | $ | 143,710,246 | ||||||||||
DWS Government Cash Institutional Shares | 91,279,295,482 | 91,279,295,482 | 88,074,168,877 | 88,074,168,877 | ||||||||||||
Government Cash Managed Shares | 965,718,437 | 965,718,437 | 1,105,848,695 | 1,105,848,695 | ||||||||||||
Service Shares | 128,077,453 | 128,077,453 | 217,149,610 | 217,149,610 | ||||||||||||
Account Maintenance Fees | — | — | — | (59 | ) | |||||||||||
$ | 92,680,038,672 | $ | 89,540,877,369 |
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Year Ended April 30, 2019 | Year Ended April 30, 2018 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Shares issued to shareholders in reinvestment of distributions |
| |||||||||||||||
DWS Government & Agency Money Fund | 3,331,892 | $ | 3,331,892 | 1,336,368 | $ | 1,336,368 | ||||||||||
DWS Government Cash Institutional Shares | 10,340,704 | 10,340,704 | 5,866,419 | 5,866,419 | ||||||||||||
Government Cash Managed Shares | 1,138,641 | 1,138,641 | 596,039 | 596,039 | ||||||||||||
Service Shares | 251,248 | 251,248 | 114,876 | 114,876 | ||||||||||||
$ | 15,062,485 | $ | 7,913,702 | |||||||||||||
Shares redeemed |
| |||||||||||||||
DWS Government & Agency Money Fund | (228,757,444 | ) | $ | (228,757,444 | ) | (158,011,883 | ) | $ | (158,011,883 | ) | ||||||
DWS Government Cash Institutional Shares | (93,306,190,114 | ) | (93,306,190,114 | ) | (87,965,664,489 | ) | (87,965,664,489 | ) | ||||||||
Government Cash Managed Shares | (980,618,887 | ) | (980,618,887 | ) | (1,118,258,613 | ) | (1,118,258,613 | ) | ||||||||
Service Shares | (158,060,228 | ) | (158,060,228 | ) | (203,068,716 | ) | (203,068,716 | ) | ||||||||
$ | (94,673,626,673 | ) | $ | (89,445,003,701 | ) | |||||||||||
Net increase (decrease) |
| |||||||||||||||
DWS Government & Agency Money Fund | 81,521,748 | $ | 81,521,748 | (12,965,269 | ) | $ | (12,965,269 | ) | ||||||||
DWS Government Cash Institutional Shares | (2,016,553,928 | ) | (2,016,553,928 | ) | 114,370,807 | 114,370,807 | ||||||||||
Government Cash Managed Shares | (13,761,809 | ) | (13,761,809 | ) | (11,813,879 | ) | (11,813,879 | ) | ||||||||
Service Shares | (29,731,527 | ) | (29,731,527 | ) | 14,195,770 | 14,195,770 | ||||||||||
Account Maintenance Fees | — | — | — | (59 | ) | |||||||||||
$ | (1,978,525,516 | ) | $ | 103,787,370 |
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DWSTax-Exempt Portfolio
Year Ended April 30, 2019 | Year Ended April 30, 2018 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Shares sold | ||||||||||||||||
DWSTax-Exempt Cash Premier Shares | 62,299,935 | $ | 62,299,935 | 67,725,230 | $ | 67,725,230 | ||||||||||
DWSTax-Exempt Money Fund | 34,172,341 | 34,172,341 | 51,423,925 | 51,423,925 | ||||||||||||
DWSTax-Free Money Fund Class S | 11,153,741 | 11,153,741 | 13,879,488 | 13,879,488 | ||||||||||||
Service Shares | 53,988,330 | 53,988,330 | 81,813,513 | 81,813,513 | ||||||||||||
Tax-Exempt Cash Managed Shares | 286,624,984 | 286,624,984 | 326,154,215 | 326,154,215 | ||||||||||||
Tax-Free Investment Class | 11,523,394 | 11,523,394 | 9,272,138 | 9,272,138 | ||||||||||||
Account Maintenance Fees | — | — | — | (100 | ) | |||||||||||
$ | 459,762,725 | $ | 550,268,409 | |||||||||||||
Shares issued to shareholders in reinvestment of distributions |
| |||||||||||||||
DWSTax-Exempt Cash Premier Shares | 537,230 | $ | 537,230 | 394,754 | $ | 394,754 | ||||||||||
DWSTax-Exempt Money Fund | 1,659,886 | 1,659,886 | 1,145,507 | 1,145,507 | ||||||||||||
DWSTax-Free Money Fund Class S | 607,214 | 607,214 | 392,467 | 392,467 | ||||||||||||
Service Shares | 108,406 | 108,406 | 36,362 | 36,362 | ||||||||||||
Tax-Exempt Cash Managed Shares | 1,638 | 1,638 | 1,571 | 1,571 | ||||||||||||
Tax-Free Investment Class | 57,387 | 57,387 | 28,002 | 28,002 | ||||||||||||
$ | 2,971,761 | $ | 1,998,663 |
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Year Ended April 30, 2019 | Year Ended April 30, 2018 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Shares redeemed |
| |||||||||||||||
DWSTax-Exempt Cash Premier Shares | (54,454,045 | ) | $ | (54,454,045 | ) | (64,594,618 | ) | $ | (64,594,618 | ) | ||||||
DWSTax-Exempt Money Fund | (47,917,455 | ) | (47,917,455 | ) | (59,547,276 | ) | (59,547,276 | ) | ||||||||
DWSTax-Free Money Fund Class S | (11,058,223 | ) | (11,058,223 | ) | (18,119,437 | ) | (18,119,437 | ) | ||||||||
Service Shares | (82,572,012 | ) | (82,572,012 | ) | (79,236,036 | ) | (79,236,036 | ) | ||||||||
Tax-Exempt Cash Managed Shares | (279,241,365 | ) | (279,241,365 | ) | (342,806,879 | ) | (342,806,879 | ) | ||||||||
Tax-Free Investment Class | (10,712,270 | ) | (10,712,270 | ) | (12,340,478 | ) | (12,340,478 | ) | ||||||||
$ | (485,955,370 | ) | $ | (576,644,724 | ) | |||||||||||
Net increase (decrease) |
| |||||||||||||||
DWSTax-Exempt Cash Premier Shares | 8,383,120 | $ | 8,383,120 | 3,525,366 | $ | 3,525,366 | ||||||||||
DWSTax-Exempt Money Fund | (12,085,228 | ) | (12,085,228 | ) | (6,977,844 | ) | (6,977,844 | ) | ||||||||
DWSTax-Free Money Fund Class S | 702,732 | 702,732 | (3,847,482 | ) | (3,847,482 | ) | ||||||||||
Service Shares | (28,475,276 | ) | (28,475,276 | ) | 2,613,839 | 2,613,839 | ||||||||||
Tax-Exempt Cash Managed Shares | 7,385,257 | 7,385,257 | (16,651,093 | ) | (16,651,093 | ) | ||||||||||
Tax-Free Investment Class | 868,511 | 868,511 | (3,040,338 | ) | (3,040,338 | ) | ||||||||||
Account Maintenance Fees | — | — | — | (100 | ) | |||||||||||
$ | (23,220,884 | ) | $ | (24,377,652 | ) |
E. Ownership of the Fund
From time to time, a Fund may have a concentration of several shareholder accounts holding a significant percentage of shares outstanding. Investment activities of these shareholders could have a material impact on the Fund.
At April 30, 2019, 25% of the outstanding shares of DWS Government & Agency Securities Portfolio was held by other affiliated DWS funds shareholder accounts as a cash management vehicle for the cash collateral received in connection with the securities lending program of the DWS family of funds.
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Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Cash Account Trust and Shareholders of DWS Government & Agency Securities Portfolio and DWS Tax-Exempt Portfolio:
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of DWS Government & Agency Securities Portfolio (formerly Deutsche Government & Agency Securities Portfolio) and DWS Tax-Exempt Portfolio (formerly Deutsche Tax-Exempt Portfolio) (collectively referred to as the “Funds”) (two of the funds constituting Cash Account Trust) (the “Trust”), including the investment portfolios, as of April 30, 2019, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (two of the funds constituting Cash Account Trust) at April 30 2019, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
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material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2019, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies in the DWS family of funds since at least 1979, but we are unable to determine the specific year.
Boston, Massachusetts
June 19, 2019
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Information About Each Fund’s Expenses
As an investor of a Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service(12b-1) fees and other Fund expenses. Examples of transaction costs include account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in each Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recentsix-month period, each Fund limited these expenses; had they not done so, expenses would have been higher for the Service Shares. The example in the table is based on an investment of $1,000 invested at the beginning of thesix-month period and held for the entire period (November 1, 2018 to April 30, 2019).
The tables illustrate your Fund’s expenses in two ways:
– | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
– | Hypothetical 5% Portfolio Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The “Expenses Paid per $1,000” line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. If these transaction costs had been included, your costs would have been higher.
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Service Shares
Expenses and Value of a $1,000 Investment for the six months ended April 30, 2019 (Unaudited) | ||||||||
Actual Fund Return | DWS Government & Agency Securities Portfolio | DWS Tax-Exempt Portfolio | ||||||
Beginning Account Value 11/1/18 | $ | 1,000.00 | $ | 1,000.00 | ||||
Ending Account Value 4/30/19 | $ | 1,007.10 | $ | 1,003.20 | ||||
Expenses Paid per $1,000* | $ | 4.88 | $ | 5.17 | ||||
Hypothetical 5% Fund Return | ||||||||
Beginning Account Value 11/1/18 | $ | 1,000.00 | $ | 1,000.00 | ||||
Ending Account Value 4/30/19 | $ | 1,019.93 | $ | 1,019.64 | ||||
Expenses Paid per $1,000* | $ | 4.91 | $ | 5.21 |
* | Expenses are equal to the Fund’s annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recentsix-month period), then divided by 365. |
Annualized Expense Ratios | DWS Government & Agency Securities Portfolio | DWS Tax-Exempt Portfolio | ||||||
Service Shares | .98 | % | 1.04 | % |
For more information, please refer to each Fund’s prospectus.
For an analysis of the fees associated with an investment in the Fund or similar funds, please refer to tools.finra.org/fund_analyzer/.
Tax Information | (Unaudited) |
For the DWS Government & Agency Securities Portfolio, a total of 62% of the dividends distributed during the fiscal year was derived from interest on U.S. government securities, which is generally exempt from state income tax.
For the DWS Tax-Exempt Portfolio, of the dividends paid from net investment income for the taxable year ended April 30, 2019, 100% are designated as exempt interest dividends for federal income tax purposes.
Please consult a tax advisor if you have questions about federal or state
income tax laws, or on how to prepare your tax returns. If you have
specific questions about your account, please call(800) 728-3337.
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Proxy Voting
The Fund’s policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 are available on our Web site —dws.com/en-us/resources/proxy-voting — or on the SEC’s Web site — sec.gov. To obtain a written copy of the Fund’s policies and procedures without charge, upon request, call us toll free at (800)728-3337.
Portfolio Holdings
Following the Fund’s fiscal first and thirdquarter-end, a complete portfolio holdings listing was filed with the SEC on FormN-Q. Effective from and after the Fund’s first fiscal quarter-end of 2019, From N-Q is rescinded and will not be filed with the SEC. In addition, each month, information about the Fund and its portfolio holdings is filed with the SEC on FormN-MFP. The SEC delays the public availability of the information filed on FormN-MFP for 60 days after the end of the reporting period included in the filing. These forms will be available on the SEC’s Web site at sec.gov. The Fund’s portfolio holdings are also posted on dws.com as of each month-end. Please see the Fund’s current prospectus for more information.
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Advisory Agreement Board Considerations and Fee Evaluation
DWS Government & Agency Securities Portfolio
The Board of Trustees (hereinafter referred to as the “Board” or “Trustees”) approved the renewal of DWS Government & Agency Securities Portfolio’s (the “Fund”) investment management agreement (the “Agreement”) with DWS Investment Management Americas, Inc. (“DIMA”) in September 2018.
In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:
– | During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”). |
– | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board’s Contract Committee reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Board. The Board then reviewed the Contract Committee’s findings and recommendations. |
– | The Board also received extensive information throughout the year regarding performance of the Fund. |
– | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
– | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s Rule12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DIMA and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered, generally, that shareholders chose to
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invest or remain invested in the Fund knowing that DIMA managed the Fund. DIMA is part of DWS Group GmbH & Co. KGaA (“DWS Group”). DWS Group is a global asset management business that offers a wide range of investing expertise and resources, including research capabilities in many countries throughout the world. In 2018, approximately 20% of DWS Group’s shares were sold in an initial public offering, with Deutsche Bank AG owning the remaining shares.
As part of the contract review process, the Board carefully considered the fees and expenses of each DWS fund overseen by the Board in light of the fund’s performance. In many cases, this led to the negotiation and implementation of expense caps. As part of these negotiations, the Board indicated that it would consider relaxing these caps in future years following sustained improvements in performance, among other considerations.
While shareholders may focus primarily on fund performance and fees, the Fund’s Board considers these and many other factors, including the quality and integrity of DIMA’s personnel and administrative support services provided by DIMA, such as back-office operations, fund valuations, and compliance policies and procedures.
Nature, Quality and Extent of Services. The Board considered the terms of the Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DIMA provides portfolio management services to the Fund and that, pursuant to a separate administrative services agreement, DIMA provides administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel and the resources made available to such personnel. The Board reviewed the Fund’s performance over short-term and long-term periods and compared those returns to various agreed-upon performance measures, including a peer universe compiled using information supplied by iMoneyNet, an independent fund data service. The Board also noted that it has put into place a process of identifying “Funds in Review” (e.g., funds performing poorly relative to a peer universe), and receives additional reporting from DIMA regarding such funds and, where appropriate, DIMA’s plans to address underperformance. The Board believes this process is an effective manner of identifying and addressing underperforming funds. Based on the information provided, the Board noted that, for theone- and three-year periods ended December 31, 2017, the Fund’s gross performance (Service Shares) was in the 2nd quartile of the applicable iMoneyNet universe (the 1st quartile being the best performers and the 4th quartile being the worst performers).
Fees and Expenses. The Board considered the Fund’s investment management fee schedule, operating expenses and total expense ratios, and comparative information provided by Broadridge Financial Solutions, Inc. (“Broadridge”) and the Fee Consultant regarding investment management fee rates paid to other investment advisors by similar funds
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(1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates paid by the Fund, which include a 0.10% fee paid to DIMA under the Fund’s administrative services agreement, were lower than the median (1st quartile) of the applicable Broadridge peer group (based on Broadridge data provided as of December 31, 2017). Based on Broadridge data provided as of December 31, 2017, the Board noted that the Fund’s total operating expenses (excluding12b-1 fees and/or shareholder administration fees, if applicable) were lower than the median of the applicable Broadridge expense universe (less any applicable12b-1 fees) for the following share classes: DWS Government Cash Institutional Shares (2nd quartile) and Government Cash Managed Shares (2nd quartile) and higher than the median of the applicable Broadridge expense universe (less any applicable12b-1 fees) for the following share classes: Service Shares (4th quartile) and DWS Government & Agency Money Fund shares (3rd quartile). The Board noted the expense limitations agreed to by DIMA. The Board also noted the voluntary fee waivers implemented by DIMA prior to December 31, 2017 to ensure the Fund maintained a positive yield. The Board considered the Fund’s management fee rate as compared to fees charged by DIMA to comparable DWS U.S. registered funds (“DWS Funds”) and considered differences between the Fund and the comparable DWS Funds. The information requested by the Board as part of its review of fees and expenses also included information about institutional accounts (including anysub-advised funds and accounts) and funds offered primarily to European investors (“DWS Europe Funds”) managed by DWS Group. The Board noted that DIMA indicated that DWS Group does not manage any institutional accounts or DWS Europe Funds comparable to the Fund.
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DIMA.
Profitability. The Board reviewed detailed information regarding revenues received by DIMA under the Agreement. The Board considered the estimated costs to DIMA, andpre-tax profits realized by DIMA, from advising the DWS Funds, as well as estimates of thepre-tax profits attributable to managing the Fund in particular. The Board also received information regarding the estimated enterprise-wide profitability of DIMA and its affiliates with respect to all fund services in totality and by fund. The Board and the Fee Consultant reviewed DIMA’s methodology in allocating its costs to the management of the Fund. Based on the information provided, the Board concluded that thepre-tax profits realized by DIMA in connection with the management of the Fund were not unreasonable. The Board also reviewed certain publicly available information regarding the profitability of certain similar investment management firms. The Board noted that, while information regarding the
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profitability of such firms is limited (and in some cases is not necessarily prepared on a comparable basis), DIMA and its affiliates’ overall profitability with respect to the DWS Funds (after taking into account distribution and other services provided to the funds by DIMA and its affiliates) was lower than the overall profitability levels of most comparable firms for which such data was available.
Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Fund and whether the Fund benefits from any economies of scale. The Board noted that the Fund’s investment management fee schedule includes fee breakpoints. The Board concluded that the Fund’s fee schedule represents an appropriate sharing between the Fund and DIMA of such economies of scale as may exist in the management of the Fund at current asset levels.
Other Benefits to DIMA and Its Affiliates. The Board also considered the character and amount of other incidental or“fall-out” benefits received by DIMA and its affiliates, including any fees received by DIMA for administrative services provided to the Fund, any fees received by an affiliate of DIMA for transfer agency services provided to the Fund and any fees received by an affiliate of DIMA for distribution services. The Board also considered benefits to DIMA related to brokerage and soft-dollar allocations, including allocating brokerage to pay for research generated by parties other than the executing broker dealers, which pertain primarily to funds investing in equity securities. In addition, the Board considered the incidental public relations benefits to DIMA related to DWS Funds advertising and cross-selling opportunities among DIMA products and services. The Board considered these benefits in reaching its conclusion that the Fund’s management fees were reasonable.
Compliance. The Board considered the significant attention and resources dedicated by DIMA to its compliance processes in recent years. The Board noted in particular (i) the experience, seniority and time commitment of the individuals serving as DIMA’s and the Fund’s chief compliance officers and (ii) the substantial commitment of resources by DIMA and its affiliates to compliance matters, including the retention of compliance personnel.
Based on all of the information considered and the conclusions reached, the Board unanimously determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Trustees and counsel present. It is possible that individual Independent Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.
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DWS Tax-Exempt Portfolio
The Board of Trustees (hereinafter referred to as the “Board” or “Trustees”) approved the renewal of DWSTax-Exempt Portfolio’s (the “Fund”) investment management agreement (the “Agreement”) with DWS Investment Management Americas, Inc. (“DIMA”) in September 2018.
In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:
– | During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”). |
– | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board’s Contract Committee reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Board. The Board then reviewed the Contract Committee’s findings and recommendations. |
– | The Board also received extensive information throughout the year regarding performance of the Fund. |
– | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
– | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s Rule12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DIMA and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered, generally, that shareholders chose to invest or remain invested in the Fund knowing that DIMA managed the Fund. DIMA is part of DWS Group GmbH & Co. KGaA (“DWS Group”). DWS Group is a global asset management business that offers a wide range of investing expertise and resources, including research capabilities in many countries throughout the world. In 2018, approximately 20% of
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DWS Group’s shares were sold in an initial public offering, with Deutsche Bank AG owning the remaining shares.
As part of the contract review process, the Board carefully considered the fees and expenses of each DWS fund overseen by the Board in light of the fund’s performance. In many cases, this led to the negotiation and implementation of expense caps. As part of these negotiations, the Board indicated that it would consider relaxing these caps in future years following sustained improvements in performance, among other considerations.
While shareholders may focus primarily on fund performance and fees, the Fund’s Board considers these and many other factors, including the quality and integrity of DIMA’s personnel and administrative support services provided by DIMA, such as back-office operations, fund valuations, and compliance policies and procedures.
Nature, Quality and Extent of Services. The Board considered the terms of the Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DIMA provides portfolio management services to the Fund and that, pursuant to a separate administrative services agreement, DIMA provides administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel and the resources made available to such personnel. The Board reviewed the Fund’s performance over short-term and long-term periods and compared those returns to various agreed-upon performance measures, including a peer universe compiled using information supplied by iMoneyNet, an independent fund data service. The Board also noted that it has put into place a process of identifying “Funds in Review” (e.g., funds performing poorly relative to a peer universe), and receives additional reporting from DIMA regarding such funds and, where appropriate, DIMA’s plans to address underperformance. The Board believes this process is an effective manner of identifying and addressing underperforming funds. Based on the information provided, the Board noted that, for theone- and three-year periods ended December 31, 2017, the Fund’s gross performance (DWSTax-Exempt Cash Premier 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).
Fees and Expenses. The Board considered the Fund’s investment management fee schedule, operating expenses and total expense ratios, and comparative information provided by Broadridge Financial Solutions, Inc. (“Broadridge”) and the Fee Consultant regarding investment management fee rates paid to other investment advisors by similar funds (1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates
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paid by the Fund, which include a 0.10% fee paid to DIMA under the Fund’s administrative services agreement, were lower than the median (1st quartile) of the applicable Broadridge peer group (based on Broadridge data provided as of December 31, 2017). Based on Broadridge data provided as of December 31, 2017, the Board noted that the Fund’s total operating expenses (excluding12b-1 fees and/or shareholder administration fees, if applicable) were higher than the median (4th quartile) of the applicable Broadridge expense universe (less any applicable12b-1 fees) for the following share classes: Service Shares, DWSTax-Exempt Cash Premier Shares, Tax Free Investment Class shares,Tax-Exempt Cash Managed Shares, DWSTax-Exempt Money Fund shares and DWSTax-Free Money Fund Class S shares. The Board noted the expense limitations agreed to by DIMA. The Board also noted the voluntary fee waivers implemented by DIMA prior to December 31, 2017 to ensure the Fund maintained a positive yield. The Board considered the Fund’s management fee rate as compared to fees charged by DIMA to comparable DWS U.S. registered funds (“DWS Funds”), noting that DIMA indicated that it does not provide services to any other comparable DWS Funds. The information requested by the Board as part of its review of fees and expenses also included information about institutional accounts (including anysub-advised funds and accounts) and funds offered primarily to European investors (“DWS Europe Funds”) managed by DWS Group. The Board noted that DIMA indicated that DWS Group does not manage any institutional accounts or DWS Europe Funds comparable to the Fund.
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DIMA.
Profitability. The Board reviewed detailed information regarding revenues received by DIMA under the Agreement. The Board considered the estimated costs to DIMA, andpre-tax profits realized by DIMA, from advising the DWS Funds, as well as estimates of thepre-tax profits attributable to managing the Fund in particular. The Board also received information regarding the estimated enterprise-wide profitability of DIMA and its affiliates with respect to all fund services in totality and by fund. The Board and the Fee Consultant reviewed DIMA’s methodology in allocating its costs to the management of the Fund. Based on the information provided, the Board concluded that thepre-tax profits realized by DIMA in connection with the management of the Fund were not unreasonable. The Board also reviewed certain publicly available information regarding the profitability of certain similar investment management firms. The Board noted that, while information regarding the profitability of such firms is limited (and in some cases is not necessarily prepared on a comparable basis), DIMA and its affiliates’ overall profitability with respect to the DWS Funds (after taking into account
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distribution and other services provided to the funds by DIMA and its affiliates) was lower than the overall profitability levels of most comparable firms for which such data was available.
Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Fund and whether the Fund benefits from any economies of scale. The Board noted that the Fund’s investment management fee schedule includes fee breakpoints. The Board concluded that the Fund’s fee schedule represents an appropriate sharing between the Fund and DIMA of such economies of scale as may exist in the management of the Fund at current asset levels.
Other Benefits to DIMA and Its Affiliates. The Board also considered the character and amount of other incidental or“fall-out” benefits received by DIMA and its affiliates, including any fees received by DIMA for administrative services provided to the Fund, any fees received by an affiliate of DIMA for transfer agency services provided to the Fund and any fees received by an affiliate of DIMA for distribution services. The Board also considered benefits to DIMA related to brokerage and soft-dollar allocations, including allocating brokerage to pay for research generated by parties other than the executing broker dealers, which pertain primarily to funds investing in equity securities. In addition, the Board considered the incidental public relations benefits to DIMA related to DWS Funds advertising and cross-selling opportunities among DIMA products and services. The Board considered these benefits in reaching its conclusion that the Fund’s management fees were reasonable.
Compliance. The Board considered the significant attention and resources dedicated by DIMA to its compliance processes in recent years. The Board noted in particular (i) the experience, seniority and time commitment of the individuals serving as DIMA’s and the Fund’s chief compliance officers and (ii) the substantial commitment of resources by DIMA and its affiliates to compliance matters, including the retention of compliance personnel.
Based on all of the information considered and the conclusions reached, the Board unanimously determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Trustees and counsel present. It is possible that individual Independent Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.
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The following table presents certain information regarding the Board Members and Officers of the Fund. Each Board Member’s year of birth is set forth in parentheses after his or her name. Unless otherwise noted, (i) each Board Member has engaged in the principal occupation(s) noted in the table for at least the most recent five years, although not necessarily in the same capacity; and (ii) the address of each Independent Board Member is c/o Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA02199-3600. Except as otherwise noted below, the term of office for each Board Member is until the election and qualification of a successor, or until such Board Member sooner dies, resigns, is removed or as otherwise provided in the governing documents of the Fund. Because the Fund does not hold an annual meeting of shareholders, each Board Member will hold office for an indeterminate period. The Board Members may also serve in similar capacities with other funds in the fund complex.
Independent Board Members | ||||||||
Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
Keith R. Fox, CFA (1954)
Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods importer and distributor); The Kennel Shop (retailer); former Chairman, National Association of Small Business Investment Companies; former Directorships: BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) (2011–2012) | 82 | — | |||||
John W. Ballantine (1946)
Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population well-being and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc. and Oak Brook Bank; Prisma Energy International; Public Radio International. Not-for-Profit Director/Trustee: Palm Beach Civic Association; Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago | 82 | Portland General Electric2 (utility company) (2003– present) |
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Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
Henry P. Becton, Jr. (1943)
Board Member since 1990 | Vice Chair and former President, WGBH Educational Foundation. Directorships: Public Radio International; Public Radio Exchange (PRX); The Pew Charitable Trusts (charitable organization); Massachusetts Humane Society; Overseer of the New England Conservatory; former Directorships: Becton Dickinson and Company2 (medical technology company); Belo Corporation2 (media company); The PBS Foundation; Association of Public Television Stations; Boston Museum of Science; American Public Television; Concord Academy; New England Aquarium; Mass. Corporation for Educational Telecommunications; Committee for Economic Development; Public Broadcasting Service; Connecticut College; North Bennett Street School (Boston); American Documentary, Inc. (public media) | 82 | — | |||||
Dawn-Marie Driscoll (1946)
Board Member since 1987 | Emeritus Executive Fellow, Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988). Directorships: Advisory Board, Center for Business Ethics, Bentley University; Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 82 | — | |||||
Richard J. Herring (1946)
Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); Director, The Wharton Financial Institutions Center (since 1994); formerly: Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Formerly Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), and Nonexecutive Director of Barclays Bank DE (2010–2018) | 82 | Director, Aberdeen Japan Fund (since 2007) |
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Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
William McClayton (1944)
Board Member since 2004 | Private equity investor (since October 2009); previously, Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001–2009); Directorship: Board of Managers, YMCA of Metropolitan Chicago; formerly: Senior Partner, Arthur Andersen LLP (accounting) (1966–2001); Trustee, Ravinia Festival | 82 | — | |||||
Rebecca W. Rimel (1951)
Board Member since 1995 | President, Chief Executive Officer and Director, The Pew Charitable Trusts (charitable organization) (1994–present); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012) | 82 | Director, Becton Dickinson and Company2 (medical technology company) (2012– present); Director, BioTelemetry Inc.2(health care) (2009– present) | |||||
William N. Searcy, Jr. (1946)
Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2(telecommunications) (November 1989–September 2003); Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 82 | — | |||||
Jean Gleason Stromberg (1943)
Board Member since 1997 | Retired. Formerly, Consultant (1997–2001); Director, Financial Markets U.S. Government Accountability Office (1996–1997); Partner, Norton Rose Fulbright, L.L.P. (law firm) (1978–1996); former Directorships: The William and Flora Hewlett Foundation (charitable organization) (2000–2015); Service Source, Inc. (nonprofit), Mutual Fund Directors Forum (2002–2004), American Bar Retirement Association (funding vehicle for retirement plans) (1987–1990 and 1994–1996) | 82 | — |
Officers4 | ||
Name, Year of Birth, Position with the Fund and Length of Time Served5 | Business Experience and Directorships During the Past Five Years | |
Hepsen Uzcan6(1974)
President and Chief Executive Officer, 2017–present | Managing Director,3 DWS; Secretary, DWS USA Corporation (since March 2018); Assistant Secretary, DWS Distributors, Inc. (since June 25, 2018); Director and Vice President, DWS Service Company (since June 25, 2018); Assistant Secretary, DWS Investment Management Americas, Inc. (since June 25, 2018); and Director and President, DB Investment Managers, Inc. (since June 25, 2018); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019) |
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Name, Year of Birth, Position with the Fund and Length of Time Served5 | Business Experience and Directorships During the Past Five Years | |
John Millette8(1962)
Vice President and Secretary, 1999–present | Director,3DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); and Director and Vice President, DWS Trust Company (2016–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017) | |
Diane Kenneally8,9(1966)
Chief Financial Officer and Treasurer, since 2018 | Director,3 DWS; formerly: Assistant Treasurer for the DWS funds (2007–2018) | |
Paul Antosca8(1957)
Assistant Treasurer, 2007–present | Director,3DWS | |
Sheila Cadogan8(1966)
Assistant Treasurer, 2017–present | Director,3DWS; Director and Vice President, DWS Trust Company (since 2018) | |
Scott D. Hogan8(1970)
Chief Compliance Officer, 2016–present | Director,3DWS | |
Caroline Pearson8(1962)
Chief Legal Officer, 2010–present | Managing Director,3DWS; formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); and Secretary, Deutsche AM Service Company (2010–2017) | |
Wayne Salit7(1967) Anti-Money Laundering Compliance Officer, 2014–present | Director,3 Deutsche Bank; and AML Officer, DWS Trust Company; formerly: Managing Director, AML Compliance Officer at BNY Mellon (2011–2014); and Director, AML Compliance Officer at Deutsche Bank (2004–2011) | |
Ciara Crawford10 (1984) Assistant Secretary, since February 8, 2019 | Associate, DWS (since 2015); previously, Legal Assistant at Accelerated Tax Solutions. |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Executive title, not a board directorship. |
4 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
5 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
6 | Address: 345 Park Avenue, New York, NY 10154. |
7 | Address: 60 Wall Street, New York, NY 10005. |
8 | Address: One International Place, Boston, MA 02110. |
9 | Appointed Treasurer and Chief Financial Officer effective July 2, 2018. |
10 | Address: 5022 Gate Parkway, Suite 400, Jacksonville, FL 32256. |
The Fund’s Statement of Additional Information (“SAI”) includes additional information about the Board Members. The SAI is available, without charge, upon request. If you would like to request a copy of the SAI, you may do so by calling the followingtoll-free number:(800) 728-3337.
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CATS-2
(R-027582-8 6/19)
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April 30, 2019
Annual Report
to Shareholders
DWS Government & Agency Securities Portfolio
(formerly Deutsche Government & Agency Securities Portfolio)
DWS Government Cash Institutional Shares
(formerly Deutsche Government Cash Institutional Shares)
Fund #250
Government Cash Managed Shares
Fund #254
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s Web site (dws.com), and you will be notified by mail each time a report is posted and provided with a Web site link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank), or if you are a direct investor, by calling (800) 728-3337 or sending an email request to service@dws.com.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 728-3337 or send an email request to service@dws.com to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with DWS if you invest directly with the Fund.
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27 | ||||
29 | Information About Your Fund’s Expenses | |||
30 | Tax Information | |||
31 | Other Information | |||
32 | Advisory Agreement Board Considerations and Fee Evaluation | |||
36 | Board Members and Officers |
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 dws.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.
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. You should not rely on or expect the Advisor to enter into support agreements or take other actions to maintain the Fund’s $1.00 share price. The credit quality of the Fund’s holdings can change rapidly in certain markets, and the default of a single holding could have an adverse impact on the Fund’s share price. The Fund’s share price can also be negatively affected during periods of high redemption pressures and/or illiquid markets. The actions of a few large investors in one class of shares of the Fund may have a significant adverse effect on the share prices of all classes of shares of the Fund. Please read the prospectus for specific details regarding the Fund’s risk profile.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services.
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
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Portfolio Management Review | (Unaudited) |
Market Overview
All performance information below is historical and does not guarantee future results. Investment return and principal fluctuate, so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit dws.com for the Funds’ most recentmonth-end performance. The7-day current yield refers to the income paid by the Funds over a7-day period expressed as an annual percentage rate of each Fund’s shares outstanding. Yields fluctuate and are not guaranteed.
Over the past 12 months ended April 30, 2019, yields across the money market yield curve fluctuated based on the growing U.S. economy and evolving U.S. Federal Reserve (the Fed) statements and actions. In light of continued economic strength and a tight labor market, the Federal Open Market Committee (FOMC) raised short-term rates at its June 2018 meeting. In September, the Fed once again raised rates, with accompanying statements that at the time were viewed as aggressive regarding the prospects for future rate hikes. In December, a number of factors contributed to a considerable increase in financial market volatility and a tightening in overall financial conditions. These factors included statements by the Fed following its December 2018 rate hike. In December, the Fed’s messaging disappointed market watchers because the central bank did not commit to a pause in its rate hikes, despite signs that growth was slowing in some parts of the global economy. Disappointment in the Fed’s statements during the fourth quarter of 2018 coincided with a major correction in the stock markets, an inverted yield curve (often a predictor of economic recession), a widening of credit spreads, apparent difficulties in trade talks with China, and a U.S. government shutdown.
In January, the short-term rate environment underwent a meaningful change: Responding to the significant financial market disruptions that had taken place in late 2018, the Fed pivoted dramatically, taking all of its rate hike forecasts off the table and changing from a hawkish to a neutral (to some observers, even dovish) monetary policy stance. The Fed not only walked backed its projections of fed funds rate increases, but also lowered its U.S. economic growth estimates. Money market participants took the altered short-term rate expectations even further by “pricing in” a Fed rate cut in early 2020. At the end of the12-month period, the
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market consensus was that in terms of possible short-term rate changes, the Fed would most likely be on hold for the remainder of 2019.
Positive Contributors to Fund Performance
DWS Government & Agency Securities Portfolio seeks to provide maximum current income consistent with stability of capital.
Within the DWS Government & Agency Securities Portfolio, we were able to maintain what we believe to be a competitive yield for the Fund during its annual period ended April 30, 2019. For the period, the Fund held a large percentage of portfolio assets in agency and Treasury floating-rate securities to take advantage of any rises in LIBOR and Treasury bill rates. At the same time, the Fund invested in overnight agency and Treasury repurchase agreements for liquidity and looked for yield opportunities from three- tosix-month agency and Treasury securities.
Negative Contributors to Fund Performance
The types of securities that we invested in tended to have lower yields than issues carrying more risk. We preferred to be cautious during a time of market uncertainty. In the end this may have cost the Fund some yield, but we believe that this represented a prudent approach to preserving principal.
Outlook and Positioning
We are cautious regarding current U.S. economic policy, the global geopolitical situation, and the agenda on trade that the administration is pursuing. However, we believe that the economy can continue to expand, though with a possible slowdown later this year or early in 2020. For now we are positioning the Fund for continued growth. With no Fed rate hikes projected in the coming months, we plan to continue our current portfolio strategy until there is a significant shift in the market environment.
We continue our insistence on what we believe to be the highest credit quality within the Fund. We also plan to maintain what we believe to be our conservative investment strategies and standards under the current market conditions. We continue to apply what we believe to be a careful approach to investing on behalf of the Fund and to seek competitive yield for our shareholders.
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Fund Performance(as of April 30, 2019)
Performance is historical and does not guarantee future results. Current performance may be lower or higher than the performance data quoted.
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
7-Day Current Yield | ||||
DWS Government Cash Institutional Shares | 2.35%* | |||
Government Cash Managed Shares | 2.15%* |
Yields are historical, will fluctuate and do not guarantee future performance. The7-day current yield refers to the income paid by the Fund over a7-day period expressed as an annual percentage rate of the Fund’s shares outstanding. For the most current yield information, visit our Web site at dws.com.
* | The 7-Day Current Yield would have been 2.30% and 2.12% for DWS Government Cash Institutional Shares and Government Cash Managed Shares respectively, had certain expenses not been reduced. |
Portfolio Management Team
A group of investment professionals is responsible for theday-to-day management of the Fund. These investment professionals have a broad range of experience managing money market funds.
The views expressed reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The management team’s views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Past performance is no guarantee of future results. Current and future portfolio holdings are subject to risk.
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Terms to Know
Theyield curve is a graphical representation of how yields on bonds of different maturities compare. Normally, yield curves slant up, as bonds with longer maturities typically offer higher yields than short-term bonds.
Floating-rate securities are debt instruments with floating-rate coupons that generally reset every 30 to 90 days. While floating-rate securities are senior to equity and fixed-income securities, there is no guaranteed return of principal in case of default. Floating-rate issues often have less interest-rate risk than other fixed-income investments. Floating-rate securities are most often secured assets, generally senior to a company’s secured debt, and can be transferred to debt holders, resulting in potential downside risk.
LIBOR, or London Interbank Offered Rate, is a benchmark rate that some of the world’s leading banks charge each other for short-term loans. LIBOR serves as the first step to calculating interest rates on various loans throughout the world.
Arepurchase agreement, or “overnight repo,” is an agreement between a seller and a buyer, usually of government securities, where the seller agrees to repurchase the securities at a given price and usually at a stated time. Repos are widely used money market instruments that serve as an interest-bearing, short-term “parking place” for large sums of money.
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Portfolio Summary | (Unaudited) |
DWS Government & Agency Securities Portfolio
Asset Allocation(As a % of Investment Portfolio) | 4/30/19 | 4/30/18 | ||||||
Government & Agency Obligations | 57% | 82% | ||||||
Repurchase Agreements | 43% | 18% | ||||||
100% | 100% | |||||||
Weighted Average Maturity | 4/30/19 | 4/30/18 | ||||||
Cash Account Trust — DWS Government & Agency | 21 days | 33 days | ||||||
iMoneyNet Government & Agencies Retail Money Fund Average* | 29 days | 31 days |
* | The Fund is compared to its respective iMoney Net Category: Government & Agencies Retail Money Fund Average consists of allnon-institutional government money market funds. Category includes the most broadly based of the government retail funds. These funds can invest in U.S. Treasuries, U.S. Other, Repos, whether or not they are backed by U.S. Treasuries andgovernment-backed Floating Rate Notes. |
Weighted average maturity, also known as effective maturity, is the weighted average of the maturity date of bonds held by the Fund taking into consideration any available maturity shortening features.
Portfolio holdings and characteristics are subject to change.
For more complete details about the Fund’s holdings, see pages 8–11. A quarterly Fact Sheet is available on dws.com or upon request.
DWS Government Cash Institutional Shares Government Cash Managed Shares | | | 7 |
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Investment Portfolio | as of April 30, 2019 |
Principal Amount ($) | Value ($) | |||||||
Government & Agency Obligations 56.5% | ||||||||
U.S. Government Sponsored Agencies 55.6% | ||||||||
Federal Farm Credit Bank: | ||||||||
1-month LIBOR minus 0.123%, 2.35%**, 8/13/2019 | 25,000,000 | 25,000,000 | ||||||
1-month LIBOR minus 0.095%, 2.382%**, 7/25/2019 | 12,000,000 | 11,999,964 | ||||||
1-month LIBOR minus 0.075%, 2.402%**, 11/5/2019 | 18,000,000 | 17,999,051 | ||||||
1-month LIBOR minus 0.050%, 2.427%**, 2/25/2020 | 20,000,000 | 19,999,260 | ||||||
1-month LIBOR minus 0.050%, 2.429%**, 2/4/2020 | 32,000,000 | 32,000,000 | ||||||
1-month LIBOR minus 0.035%, 2.452%**, 8/20/2020 | 48,500,000 | 48,500,000 | ||||||
1-month LIBOR minus 0.025%, 2.454%**, 5/29/2020 | 12,500,000 | 12,499,327 | ||||||
1-month LIBOR plus 0.010%, 2.497%**, 8/19/2020 | 7,500,000 | 7,501,060 | ||||||
3-month LIBOR minus 0.180%, 2.556%**, 11/1/2019 | 25,000,000 | 25,000,000 | ||||||
2.626%*, 8/21/2019 | 10,000,000 | 9,919,422 | ||||||
1-month LIBOR plus 0.190%, 2.677%**, 6/20/2019 | 30,000,000 | 30,011,044 | ||||||
Federal Home Loan Bank: | ||||||||
2.49%, 5/6/2019 | 20,000,000 | 19,999,962 | ||||||
1-month LIBOR minus 0.125%, 2.362%**, 6/21/2019 | 40,000,000 | 40,000,000 | ||||||
3-month LIBOR minus 0.023%, 2.385%**, 12/3/2019 | 25,000,000 | 25,000,000 | ||||||
1-month LIBOR minus 0.085%, 2.388%**, 9/13/2019 | 38,000,000 | 38,000,000 | ||||||
3-month LIBOR minus 0.020%, 2.401%**, 1/16/2020 | 14,000,000 | 14,000,000 | ||||||
1-month LIBOR minus 0.065%, 2.414%**, 8/28/2019 | 18,500,000 | 18,500,000 | ||||||
1-month LIBOR minus 0.060%, 2.414%**, 12/6/2019 | 30,000,000 | 30,000,000 | ||||||
1-month LIBOR minus 0.055%, 2.418%**, 1/14/2020 | 30,000,000 | 30,000,000 | ||||||
2.423%*, 7/9/2019 | 40,000,000 | 39,816,767 | ||||||
3-month LIBOR minus 0.019%, 2.439%**, 8/28/2019 | 35,000,000 | 35,000,000 | ||||||
2.443%*, 8/15/2019 | 25,000,000 | 24,822,597 | ||||||
2.449%*, 6/12/2019 | 20,000,000 | 19,943,650 | ||||||
3-month LIBOR minus 0.245%, 2.449%**, 8/16/2019 | 35,000,000 | 34,993,606 | ||||||
3-month LIBOR minus 0.135%, 2.469%**, 4/13/2020 | 25,000,000 | 25,000,000 | ||||||
1-month LIBOR minus 0.010%, 2.476%**, 9/1/2020 | 20,000,000 | 20,000,000 | ||||||
2.486%*, 9/11/2019 | 48,000,000 | 47,565,179 | ||||||
3-month LIBOR minus 0.195%, 2.498%**, 2/14/2020 | 35,000,000 | 35,000,000 | ||||||
2.5%, 5/7/2019 | 44,000,000 | 43,999,898 | ||||||
SOFR plus 0.020%, 2.5%**, 8/27/2019 | 30,000,000 | 30,000,000 | ||||||
SOFR plus 0.025%, 2.505%**, 9/20/2019 | 8,500,000 | 8,500,000 | ||||||
SOFR plus 0.030%, 2.51%**, 10/9/2019 | 32,000,000 | 32,000,000 | ||||||
SOFR plus 0.035%, 2.515%**, 2/21/2020 | 28,000,000 | 28,000,000 | ||||||
SOFR plus 0.040%, 2.52%**, 6/21/2019 | 30,000,000 | 30,000,000 | ||||||
2.53%*, 5/31/2019 | 10,000,000 | 9,979,208 | ||||||
SOFR plus 0.060%, 2.54%**, 9/10/2019 | 28,000,000 | 28,000,000 | ||||||
SOFR plus 0.065%, 2.545%**, 11/15/2019 | 22,500,000 | 22,500,000 |
The accompanying notes are an integral part of the financial statements.
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Principal Amount ($) | Value ($) | |||||||
2.58%, 3/30/2020 | 62,000,000 | 62,000,000 | ||||||
SOFR plus 0.105%, 2.585%**, 10/1/2020 | 20,000,000 | 20,000,000 | ||||||
2.596%*, 7/29/2019 | 35,000,000 | 34,778,489 | ||||||
Federal Home Loan Mortgage Corp.: | ||||||||
1-month LIBOR minus 0.110%, 2.369%**, 5/28/2019 | 33,000,000 | 33,000,000 | ||||||
1-month LIBOR minus 0.100%, 2.374%**, 8/8/2019 | 68,000,000 | 67,998,958 | ||||||
2.454%*, 6/5/2019 | 50,000,000 | 49,882,361 | ||||||
SOFR minus 0.01%, 2.47%**, 5/20/2019 | 41,000,000 | 41,000,000 | ||||||
SOFR minus 0.01%, 2.47%**, 5/22/2019 | 50,000,000 | 50,000,000 | ||||||
SOFR minus 0.01%, 2.47%**, 8/5/2019 | 60,000,000 | 60,000,000 | ||||||
SOFR plus 0.010%, 2.49%**, 7/11/2019 | 14,000,000 | 14,000,000 | ||||||
SOFR plus 0.025%, 2.505%**, 5/8/2019 | 38,750,000 | 38,750,000 | ||||||
SOFR plus 0.030%, 2.51%**, 6/19/2019 | 32,000,000 | 32,000,000 | ||||||
Federal National Mortgage Association: | ||||||||
SOFR plus 0.060%, 2.54%**, 7/30/2020 | 16,500,000 | 16,500,000 | ||||||
SOFR plus 0.070%, 2.55%**, 10/30/2019 | 5,000,000 | 5,000,000 | ||||||
SOFR plus 0.075%, 2.555%**, 10/30/2020 | 22,000,000 | 22,000,000 | ||||||
SOFR plus 0.010%, 2.58%**, 4/30/2020 | 5,000,000 | 5,000,000 | ||||||
|
| |||||||
1,522,959,803 | ||||||||
U.S. Treasury Obligation 0.9% | ||||||||
U.S. Treasury Bill, 2.514%*, 6/13/2019 | 25,590,000 | 25,514,197 | ||||||
Total Government & Agency Obligations(Cost $1,548,474,000) |
| 1,548,474,000 | ||||||
Repurchase Agreements 43.0% | ||||||||
Barclays Bank PLC, 2.75%, dated 4/30/2019, to be repurchased at $350,026,736 on 5/1/2019 (a) | 350,000,000 | 350,000,000 | ||||||
BNP Paribas, 2.75%, dated 4/30/2019, to be repurchased at $345,626,400 on 5/1/2019 (b) | 345,600,000 | 345,600,000 | ||||||
HSBC Securities, Inc., 2.75%, dated 4/30/2019, to be repurchased at $177,413,551 on 5/1/2019 (c) | 177,400,000 | 177,400,000 | ||||||
Wells Fargo Bank, 2.77%, dated 4/30/2019, to be repurchased at $303,481,349 on 5/1/2019 (d) | 303,458,000 | 303,458,000 | ||||||
| ||||||||
Total Repurchase Agreements(Cost $1,176,458,000) |
| 1,176,458,000 | ||||||
% of Net Assets | Value ($) | |||||||
Total Investment Portfolio(Cost $2,724,932,000) | 99.5 | 2,724,932,000 | ||||||
Other Assets and Liabilities, Net | 0.5 | 13,333,511 | ||||||
| ||||||||
Net Assets | 100.0 | 2,738,265,511 |
The accompanying notes are an integral part of the financial statements.
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* | Annualized yield at time of purchase; not a coupon rate. |
** | Floating rate security. These securities are shown at their current rate as of April 30, 2019. |
(a) | Collateralized by $356,634,000 U.S. Treasury Bonds, 2.25%, with various maturity dates of3/31/2021-4/30/2021 with a value of $357,000,076. |
(b) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) | ||||||||
16,477,700 | U.S. Treasury Bills | Zero Coupon | 6/20/2019 | 16,422,005 | ||||||||
284,000 | U.S. Treasury Bonds | 2.125 | 8/15/2021 | 284,158 | ||||||||
333,794,200 | U.S. Treasury Notes | 1.875–2.75 | 3/15/2021–4/30/2026 | 335,805,875 | ||||||||
| Total Collateral Value | 352,512,038 |
(c) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) | ||||||||
66,737,800 | U.S. Treasury Bonds | 1.25–1.75 | 10/31/2019–11/30/2021 | 66,375,862 | ||||||||
144,925,423 | U.S. Treasury STRIPS | Zero Coupon | 8/15/2025–5/15/2047 | 114,572,143 | ||||||||
Total Collateral Value | 180,948,005 |
(d) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) | ||||||||
192,746,394 | Federal National Mortgage Association | 3–4.5 | 10/1/2033–3/1/2049 | 194,786,956 | ||||||||
115,138,672 | Federal National Mortgage Corp. — Interest Only | 2.5–5 | 1/1/2034–5/1/2049 | 114,740,204 | ||||||||
Total Collateral Value | 309,527,160 |
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
SOFR: Secured Overnight Financing Rate
STRIPS: Separate Trading of Registered Interest and Principal Securities
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Securities held by the Fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
The accompanying notes are an integral part of the financial statements.
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The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments in Securities (e) | $ | — | $ | 1,548,474,000 | $ | — | $ | 1,548,474,000 | ||||||||
Repurchase Agreements | — | 1,176,458,000 | — | 1,176,458,000 | ||||||||||||
Total | $ | — | $ | 2,724,932,000 | $ | — | $ | 2,724,932,000 |
(e) | See Investment Portfolio for additional detailed categorizations. |
The accompanying notes are an integral part of the financial statements.
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Statement of Assets and Liabilities
as of April 30, 2019 |
| |||
Assets | | DWS Government & Agency Securities Portfolio | | |
Investment in securities, valued at amortized cost | $ | 1,548,474,000 | ||
Repurchased agreements, valued at amortized cost | 1,176,458,000 | |||
Cash | 28,914,850 | |||
Receivable for Fund shares sold | 5,921,099 | |||
Interest receivable | 4,067,332 | |||
Other assets | 84,582 | |||
Total assets | 2,763,919,863 | |||
Liabilities |
| |||
Payable for investments purchased | 20,000,000 | |||
Payable for Fund shares redeemed | 1,389,196 | |||
Distributions payable | 3,594,110 | |||
Accrued management fee | 39,232 | |||
Accrued Trustees’ fees | 38,447 | |||
Other accrued expenses and payables | 593,367 | |||
Total liabilities | 25,654,352 | |||
Net assets, at value | $ | 2,738,265,511 | ||
Net Assets Consist of |
| |||
Distributable earnings (loss) | 148,995 | |||
Paid-in capital | 2,738,116,516 | |||
Net assets, at value | $ | 2,738,265,511 |
The accompanying notes are an integral part of the financial statements.
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Statement of Assets and Liabilitiesas of April 30, 2019 (continued) |
Net Asset Value | DWS Government & Agency Securities Portfolio | |||
DWS Government & Agency Money Fund |
| |||
Net Asset Value, offering and redemption price per share ($213,967,551 ÷ 213,972,747 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 ($2,333,884,456 ÷ 2,333,942,335 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 ($173,913,987 ÷ 173,918,298 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 ($16,499,517 ÷ 16,499,926 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.
DWS Government Cash Institutional Shares Government Cash Managed Shares | | | 13 |
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For the year ended April 30, 2019 | ||||
Investment Income | | DWS Government & Agency Securities Portfolio | | |
Income: | ||||
Interest | $ | 73,480,927 | ||
Expenses: | ||||
Management fee | 2,594,244 | |||
Administration fee | 3,452,936 | |||
Services to shareholders | 775,225 | |||
Distribution and service fees | 432,700 | |||
Custodian fee | 32,702 | |||
Professional fees | 177,192 | |||
Reports to shareholders | 90,969 | |||
Registration fees | 97,051 | |||
Trustees’ fees and expenses | 148,792 | |||
Other | 214,432 | |||
Total expenses before expense reductions | 8,016,243 | |||
Expense reductions | (2,477,579 | ) | ||
Total expenses after expense reductions | 5,538,664 | |||
Net investment income | 67,942,263 | |||
Net realized gain (loss) from investments | (53,787 | ) | ||
Net increase (decrease) in net assets resulting from operations | $ | 67,888,476 |
The accompanying notes are an integral part of the financial statements.
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Statements of Changes in Net Assets
DWS Government & Agency Securities Portfolio | ||||||||
Years Ended April 30, | ||||||||
Increase (Decrease) in Net Assets | 2019 | 2018 | ||||||
Operations: |
| |||||||
Net investment income | $ | 67,942,263 | $ | 49,932,527 | ||||
Net realized gain (loss) | (53,787 | ) | 14,967 | |||||
Net increase in net assets resulting from operations | 67,888,476 | 49,947,494 | ||||||
Distributions to shareholders: |
| |||||||
DWS Government & Agency Money Fund | (3,382,007 | ) | (1,360,880 | ) | ||||
DWS Government Cash Institutional Shares | (60,835,410 | ) | (46,766,865 | ) | ||||
Government Cash Managed Shares | (3,456,004 | ) | (1,689,030 | ) | ||||
Service Shares | (269,527 | ) | (115,061 | ) | ||||
Total distributions | (67,942,948 | ) | (49,931,836 | )* | ||||
Fund share transactions: |
| |||||||
Proceeds from shares sold | 92,680,038,672 | 89,540,877,369 | ||||||
Reinvestment of distributions | 15,062,485 | 7,913,702 | ||||||
Payments for shares redeemed | (94,673,626,673 | ) | (89,445,003,701 | ) | ||||
Net increase (decrease) in net assets from Fund share transactions | (1,978,525,516 | ) | 103,787,370 | |||||
Increase (decrease) in net assets | (1,978,579,988 | ) | 103,803,028 | |||||
Net assets at beginning of year | 4,716,845,499 | 4,613,042,471 | ||||||
Net assets at end of year | $ | 2,738,265,511 | $ | 4,716,845,499 | ** |
* | Includes distributions from net investment income. |
** | Includes undistributed net investment income of $205,206. |
The accompanying notes are an integral part of the financial statements.
DWS Government Cash Institutional Shares Government Cash Managed Shares | | | 15 |
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DWS Government & Agency Securities Portfolio
DWS Government Cash Institutional Shares
Years Ended April 30, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Selected Per Share Data |
| |||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | .020 | .011 | .004 | .001 | .000 | * | ||||||||||||||
Net realized gain (loss) | (.000 | )* | .000 | * | .000 | * | (.000 | )* | .000 | * | ||||||||||
Total from investment operations | .020 | .011 | .004 | .001 | .000 | * | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (.020 | ) | (.011 | ) | (.004 | ) | (.001 | ) | (.000 | )* | ||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Total Return (%)a | 2.06 | 1.07 | .39 | .12 | .03 | |||||||||||||||
Ratios to Average Net Assets and Supplemental Data |
| |||||||||||||||||||
Net assets, end of period ($ millions) | 2,334 | 4,350 | 4,236 | 3,430 | 3,333 | |||||||||||||||
Ratio of expenses before expense reductions (%) | .21 | .20 | .20 | .20 | .20 | |||||||||||||||
Ratio of expenses after expense reductions (%) | .14 | .14 | .11 | .11 | .06 | |||||||||||||||
Ratio of net investment income (%) | 1.98 | 1.07 | .39 | .12 | .03 |
a | Total return would have been lower had certain expenses not been reduced. |
* | Amount is less than $.0005. |
The accompanying notes are an integral part of the financial statements.
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DWS Government & Agency Securities Portfolio
Government Cash Managed Shares
Years Ended April 30, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Selected Per Share Data |
| |||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | .018 | .009 | .002 | .000 | * | .000 | * | |||||||||||||
Net realized gain (loss) | (.000 | )* | .000 | * | .000 | * | (.000 | )* | .000 | * | ||||||||||
Total from investment operations | .018 | .009 | .002 | .000 | * | .000 | * | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (.018 | ) | (.009 | ) | (.002 | ) | (.000 | )* | (.000 | )* | ||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Total Return (%)a | 1.86 | .88 | .16 | .01 | .01 | |||||||||||||||
Ratios to Average Net Assets and Supplemental Data |
| |||||||||||||||||||
Net assets, end of period ($ millions) | 174 | 188 | 199 | 268 | 235 | |||||||||||||||
Ratio of expenses before expense reductions (%) | .42 | .40 | .42 | .42 | .42 | |||||||||||||||
Ratio of expenses after expense reductions (%) | .34 | .33 | .34 | .22 | .08 | |||||||||||||||
Ratio of net investment income (%) | 1.83 | .86 | .15 | .01 | .01 |
a | Total return would have been lower had certain expenses not been reduced. |
* | Amount is less than $.0005. |
The accompanying notes are an integral part of the financial statements.
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Notes to Financial Statements |
A. 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 anopen-end management investment company organized as a Massachusetts business trust.
The Trust offers two funds: DWS Government & Agency Securities Portfolio (formerly Deutsche Government & Agency Securities Portfolio) and DWSTax-Exempt Portfolio (formerly Deutsche Tax-Exempt Portfolio). These financial statements report on DWS Government & Agency Securities Portfolio (the “Fund”).
DWS Government & Agency Securities Portfolio offers four classes of shares: DWS Government & Agency Money Fund (formerly Deutsche Government & Agency Money Fund), DWS Government Cash Institutional Shares (formerly Deutsche Government Cash Institutional Shares), Government Cash Managed Shares and Service Shares.
The financial highlights for all classes of shares, other than DWS Government Cash Institutional Shares and Government Cash Managed Shares, are provided separately and are available upon request.
The Fund’s investment income, realized gains and losses, and certainFund-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 the Fund, except that each class bears certain expenses unique to that class such as distribution and service fees, services to shareholders and certain otherclass-specific expenses. Differences inclass-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 toclass-specific arrangements.
The Fund’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which require the use of management estimates. Actual results could differ from those estimates. The Fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of U.S. GAAP. The policies described below are followed consistently by the Fund in the preparation of its financial statements.
In October 2018, the Securities and Exchange Commission adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification, which is intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. Effective with the current reporting period, the
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Fund adopted the amendments with the impacts being that the Fund is no longer required to present components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributable earnings and the amount of undistributed net investment income on the Statements of Changes in Net Assets.
Security Valuation. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The Fund values all securities utilizing the amortized cost method permitted in accordance with Rule2a-7 under the 1940 Act and certain conditions therein. Under this method, which does not take into account unrealized capital gains or losses on securities, an instrument is initially valued at its cost and thereafter assumes a constant accretion/amortization rate to maturity of any discount or premium. Securities held by the Fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
Disclosure about the classification of fair value measurements is included in a table following the Fund’s Investment Portfolio.
Repurchase Agreements. The Fund may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with certain banks and broker/dealers whereby the Fund, through its custodian or asub-custodian bank, receives delivery of the underlying securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the market value is equal to at least the principal amount of the repurchase price plus accrued interest. The custodial bank or another designated subcustodian bank holds the collateral in a separate account until the agreement matures. If the value of the securities falls below the principal amount of the repurchase agreement plus accrued interest, the financial institution deposits additional collateral by the following business day. If the financial institution either fails to deposit the required additional collateral or fails to repurchase the securities as agreed, the Fund has the right to sell the securities and recover any resulting loss from the financial institution. If the financial institution enters into bankruptcy, the Fund’s claims on the collateral may be subject to legal proceedings.
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As of April 30, 2019, the Fund held repurchase agreements with a gross value of $1,176,458,000. The value of the related collateral exceeded the value of the repurchase agreements at period end. The detail of the related collateral is included in the footnotes following the Fund’s Investment Portfolio.
Federal Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies and to distribute all of its taxable andtax-exempt income to its shareholders.
At April 30, 2019, DWS Government & Agency Securities Portfolio had a net tax basis capital loss carryforward of approximately $56,000 of short-term losses, which may be applied against any realized net taxable capital gains indefinitely.
The Fund has reviewed the tax positions for the open tax years as of April 30, 2019 and has determined that no provision for income tax and/or uncertain tax positions is required in the Fund’s financial statements. The Fund’s federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service.
Distribution of Income. Net investment income of the Fund is declared as a daily dividend and is distributed to shareholders monthly. The Fund may take into account capital gains and losses in its daily dividend declarations. The Fund may also make additional distributions for tax purposes if necessary.
Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Temporary book and tax basis differences will reverse in a subsequent period. There were nobook-to-tax differences for the Fund.
At April 30, 2019, the Fund’s components of distributable earnings (accumulated losses) on a tax basis are as follows:
DWS Government & Agency Securities Portfolio: | ||||
Undistributed ordinary income* | $ | 3,798,631 | ||
Capital loss carryforwards | $ | (56,000 | ) |
At April 30, 2019, DWS Government & Agency Securities Portfolio had an aggregate cost of investments for federal income tax purposes of $2,724,932,000.
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In addition, the tax character of distributions paid to shareholders by the Fund is summarized as follows:
Years Ended April 30, | ||||||||
2019 | 2018 | |||||||
DWS Government & Agency Securities Portfolio: |
| |||||||
Distributions from ordinary income* | $ | 67,942,948 | $ | 49,931,836 |
* | For tax purposes,short-term capital gain distributions are considered ordinary income distributions. |
Expenses. Expenses of the Trust arising in connection with a specific Fund are allocated to that Fund. Other Trust expenses which cannot be directly attributed to a Fund are apportioned pro rata on the basis of relative net assets among the funds in the Trust.
Contingencies. In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.
Other. Investment transactions are accounted for on trade date. Interest income is recorded on the accrual basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. All discounts and premiums are accreted/amortized for both tax and financial reporting purposes.
B. Related Parties
Management Agreement. Under an Amended and Restated Investment Management Agreement with DWS Investment Management Americas, Inc. (formerly Deutsche Investment Management Americas Inc.) (“DIMA” or the “Advisor”), an indirect, wholly owned subsidiary of DWS Group GmbH & Co. KGaA (“DWS Group”), the Advisor directs the investments of the Fund in accordance with its investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Fund.
The monthly management fee for the Fund is computed based on the combined average daily net assets of the two funds of the Trust and
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allocated to the Fund based on its relative net assets, computed and accrued daily and payable monthly, at the following annual rates:
First $500 million of the Funds’ 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% |
Accordingly, for the year ended April 30, 2019, the fee pursuant to the Investment Management Agreement on DWS Government & Agency Securities Portfolio was equivalent to an annual rate (exclusive of any applicable waivers/reimbursements) of 0.08% of the Fund’s average daily net assets.
The Advisor has agreed to contractually reduce its management fee for the Fund such that the annualized effective rate is limited to 0.05% of the Fund’s average daily net assets.
For the period from May 1, 2018 through September 30, 2019, the Advisor has contractually agreed to waive its fees and/or reimburse certain operating expenses of the DWS Government Cash Institutional Shares and Government Cash Managed Shares to the extent necessary to maintain the total annual operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest) at 0.18% and 0.46%, respectively.
For the period from May 1, 2018 through April 30, 2019, the Advisor has voluntarily agreed to waive its fees and/or reimburse certain operating expenses of the Fund to the extent necessary to maintain the total annual operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest) of DWS Government Cash Institutional Shares at 0.14%. This voluntary waiver or reimbursement may be terminated at any time at the option of the Advisor.
In addition, the Advisor has agreed to voluntarily waive additional expenses. The voluntary waiver may be changed or terminated at any time without notice. Under these arrangements, the Advisor waived certain expenses on Government Cash Managed Shares.
The Advisor has also agreed to maintain expenses of certain other classes of the Trust. These rates are disclosed in the respective share classes’ annual reports that are provided separately and are available upon request.
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For the year ended April 30, 2019, fees waived and/or expenses reimbursed for each class are as follows:
DWS Government & Agency Money Fund | $ | 112,077 | ||
DWS Government Cash Institutional Shares | 2,202,358 | |||
Government Cash Managed Shares | 146,710 | |||
Service Shares | 16,434 | |||
$ | 2,477,579 |
Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays the Advisor an annual fee (“Administration Fee”) of 0.10% of the Fund’s average daily net assets, computed and accrued daily and payable monthly. For the year ended April 30, 2019, the Administration Fee was as follows:
Fund | Administration Fee | Unpaid at April 30, 2019 | ||||||
DWS Government & Agency Securities Portfolio | $ | 3,452,936 | $ | 230,641 |
Service Provider Fees. DWS Service Company (“DSC”), an affiliate of the Advisor, is the transfer agent,dividend-paying agent and shareholder service agent for the Fund. Pursuant to asub-transfer agency agreement between DSC and DST Systems, Inc. (“DST”), DSC has delegated certain transfer agent,dividend-paying agent and shareholder service agent functions to DST. DSC compensates DST out of the shareholder servicing fee it receives from the Fund. For the year ended April 30, 2019, the amounts charged to the Fund by DSC were as follows:
DWS Government & Agency Securities Portfolio: | Total Aggregated | Unpaid at April 30, 2019 | ||||||
DWS Government & Agency Money Fund | $ | 65,246 | $ | 10,778 | ||||
DWS Government Cash Institutional Shares | 410,822 | 52,030 | ||||||
Government Cash Managed Shares | 129,450 | 25,490 | ||||||
Service Shares | 61,573 | 4,811 | ||||||
$ | 667,091 | $ | 93,109 |
In addition, for the year ended April 30, 2019, the amount charged to the Fund for recordkeeping and other administrative services provided by unaffiliated third parties, included in the Statement of Operations under “Services to shareholders,” was as follows:
Sub-Recordkeeping | Total Aggregated | |||
DWS Government & Agency Money Fund | $ | 63,805 |
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Distribution Service Agreement. Under the Distribution Service Agreement, in accordance with Rule12b-1 under the 1940 Act, DWS Distributors, Inc. (“DDI”), 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 year ended April 30, 2019, the Distribution Fee was as follows:
DWS Government & Agency Securities Portfolio: | Distribution Fee | Unpaid at April 30, 2019 | Annual Rate | Contractual Rate | ||||||||||||
Service Shares | $ | 148,739 | $ | 6,881 | .60 | % | .60 | % |
In addition, DDI 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 Rule12b-1 plan.
For the year ended April 30, 2019, the Service Fee was as follows:
DWS Government & Agency Securities Portfolio: | Service Fee | Unpaid at April 30, 2019 | Annual Rate | Contractual Rate | ||||||||||||
Government Cash Managed Shares | $ | 283,961 | $ | 22,991 | .15 | % | .15 | % |
Typesetting and Filing Service Fees. Under an agreement with the Fund, DIMA is compensated for providing certainpre-press and regulatory filing services to the Fund. For the year ended April 30, 2019, the amount charged to the Fund by DIMA included in the Statement of Operations under “Reports to shareholders“ was as follows:
Fund | Total Aggregated | Unpaid at April 30, 2019 | ||||||
DWS Government & Agency Securities Portfolio | $ | 29,934 | $ | 14,489 |
Trustees’ Fees and Expenses. The Fund paid retainer fees to each Trustee not affiliated with the Advisor, plus specified amounts to the Board Chairperson and to each committee Chairperson.
C. Line of Credit
The Fund and other affiliated funds (the “Participants”) share in a $400 million revolving credit facility provided by a syndication of banks. The Fund may borrow for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the 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 theone-month LIBOR exceeds the Federal Funds Rate, the amount of such excess. The
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Fund may borrow up to a maximum of 33 percent of its net assets under the agreement. The Fund had no outstanding loans at April 30, 2019.
D. Fund Share Transactions
The following table summarizes share and dollar activity in the Fund:
DWS Government & Agency Securities Portfolio
Year Ended April 30, 2019 | Year Ended April 30, 2018 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Shares sold |
| |||||||||||||||
DWS Government & Agency Money Fund | 306,947,300 | $ | 306,947,300 | 143,710,246 | $ | 143,710,246 | ||||||||||
DWS Government Cash Institutional Shares | 91,279,295,482 | 91,279,295,482 | 88,074,168,877 | 88,074,168,877 | ||||||||||||
Government Cash Managed Shares | 965,718,437 | 965,718,437 | 1,105,848,695 | 1,105,848,695 | ||||||||||||
Service Shares | 128,077,453 | 128,077,453 | 217,149,610 | 217,149,610 | ||||||||||||
Account Maintenance Fees | — | — | — | (59 | ) | |||||||||||
$ | 92,680,038,672 | $ | 89,540,877,369 | |||||||||||||
Shares issued to shareholders in reinvestment of distributions |
| |||||||||||||||
DWS Government & Agency Money Fund | 3,331,892 | $ | 3,331,892 | 1,336,368 | $ | 1,336,368 | ||||||||||
DWS Government Cash Institutional Shares | 10,340,704 | 10,340,704 | 5,866,419 | 5,866,419 | ||||||||||||
Government Cash Managed Shares | 1,138,641 | 1,138,641 | 596,039 | 596,039 | ||||||||||||
Service Shares | 251,248 | 251,248 | 114,876 | 114,876 | ||||||||||||
$ | 15,062,485 | $ | 7,913,702 |
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Year Ended April 30, 2019 | Year Ended April 30, 2018 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Shares redeemed |
| |||||||||||||||
DWS Government & Agency Money Fund | (228,757,444 | ) | $ | (228,757,444 | ) | (158,011,883 | ) | $ | (158,011,883 | ) | ||||||
DWS Government Cash Institutional Shares | (93,306,190,114 | ) | (93,306,190,114 | ) | (87,965,664,489 | ) | (87,965,664,489 | ) | ||||||||
Government Cash Managed Shares | (980,618,887 | ) | (980,618,887 | ) | (1,118,258,613 | ) | (1,118,258,613 | ) | ||||||||
Service Shares | (158,060,228 | ) | (158,060,228 | ) | (203,068,716 | ) | (203,068,716 | ) | ||||||||
$ | (94,673,626,673 | ) | $ | (89,445,003,701 | ) | |||||||||||
Net increase (decrease) |
| |||||||||||||||
DWS Government & Agency Money Fund | 81,521,748 | $ | 81,521,748 | (12,965,269 | ) | $ | (12,965,269 | ) | ||||||||
DWS Government Cash Institutional Shares | (2,016,553,928 | ) | (2,016,553,928 | ) | 114,370,807 | 114,370,807 | ||||||||||
Government Cash Managed Shares | (13,761,809 | ) | (13,761,809 | ) | (11,813,879 | ) | (11,813,879 | ) | ||||||||
Service Shares | (29,731,527 | ) | (29,731,527 | ) | 14,195,770 | 14,195,770 | ||||||||||
Account Maintenance Fees | — | — | — | (59 | ) | |||||||||||
$ | (1,978,525,516 | ) | $ | 103,787,370 |
E. Ownership of the Fund
From time to time, the Fund may have a concentration of several shareholder accounts holding a significant percentage of shares outstanding. Investment activities of these shareholders could have a material impact on the Fund.
At April 30, 2019, 25% of the outstanding shares of the Fund was held by other affiliated DWS funds shareholder accounts as a cash management vehicle for the cash collateral received in connection with the securities lending program of the DWS family of funds.
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Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Cash Account Trust and Shareholders of DWS Government & Agency Securities Portfolio:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of DWS Government & Agency Securities Portfolio (formerly Deutsche Government & Agency Securities Portfolio) (the “Fund”) (one of the funds constituting Cash Account Trust) (the “Trust”), including the investment portfolio, as of April 30, 2019, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Cash Account Trust) at April 30 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are
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required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2019, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies in the DWS family of funds since at least 1979, but we are unable to determine the specific year.
Boston, Massachusetts
June 19, 2019
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Information About Your Fund’s Expenses
As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service(12b-1) fees and other Fund expenses. Examples of transaction costs include account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recentsix-month period, the Fund limited these expenses; had it not done so, expenses would have been higher for the DWS Government Cash Institutional Shares and the Government Cash Managed Shares. The example in the table is based on an investment of $1,000 invested at the beginning of thesix-month period and held for the entire period (November 1, 2018 to April 30, 2019).
The tables illustrate your Fund’s expenses in two ways:
– | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
– | Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The “Expenses Paid per $1,000” line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. If these transaction costs had been included, your costs would have been higher.
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Expenses and Value of a $1,000 Investment for the six months ended April 30, 2019 (Unaudited) | ||||||||
Actual Fund Return | DWS Government Cash Institutional Shares | Government Cash Managed Shares | ||||||
Beginning Account Value 11/1/18 | $ | 1,000.00 | $ | 1,000.00 | ||||
Ending Account Value 4/30/19 | $ | 1,011.30 | $ | 1,010.30 | ||||
Expenses Paid per $1,000* | $ | .70 | $ | 1.69 | ||||
Hypothetical 5% Fund Return | ||||||||
Beginning Account Value 11/1/18 | $ | 1,000.00 | $ | 1,000.00 | ||||
Ending Account Value 4/30/19 | $ | 1,024.10 | $ | 1,023.11 | ||||
Expenses Paid per $1,000* | $ | .70 | $ | 1.71 |
* | Expenses are equal to the Fund’s annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recentsix-month period), then divided by 365. |
Annualized Expense Ratios | ||||
DWS Government Cash Institutional Shares | .14 | % | ||
Government Cash Managed Shares | .34 | % |
For more information, please refer to each Fund’s prospectus.
For an analysis of the fees associated with an investment in the Fund or similar funds, please refer to tools.finra.org/fund_analyzer/.
Tax Information | (Unaudited) |
A total of 62% of the dividends distributed during the fiscal year was derived from interest on U.S. government securities, which is generally exempt from state income tax.
Please consult a tax advisor if you have questions about federal or state income tax laws, or on how to prepare your tax returns. If you have specific questions about your account, please call (800) 728-3337.
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Proxy Voting
The Fund’s policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 are available on our Web site —dws.com/en-us/resources/proxy-voting — or on the SEC’s Web site — sec.gov. To obtain a written copy of the Fund’s policies and procedures without charge, upon request, call us toll free at (800)728-3337.
Portfolio Holdings
Following the Fund’s fiscal first and thirdquarter-end, a complete portfolio holdings listing was filed with the SEC on FormN-Q. Effective from and after the Fund’s first fiscal quarter-end of 2019, Form N-Q is rescinded and will not be filed with the SEC. In addition, each month, information about the Fund and its portfolio holdings is filed with the SEC onForm N-MFP. The SEC delays the public availability of the information filed on FormN-MFP for 60 days after the end of the reporting period included in the filing. These forms will be available on the SEC’s Web site at sec.gov. The Fund’s portfolio holdings are also posted on dws.com as of each month-end. Please see the Fund’s current prospectus for more information.
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Advisory Agreement Board Considerations and Fee Evaluation
The Board of Trustees (hereinafter referred to as the “Board” or “Trustees”) approved the renewal of DWS Government & Agency Securities Portfolio’s (the “Fund”) investment management agreement (the “Agreement”) with DWS Investment Management Americas, Inc. (“DIMA”) in September 2018.
In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:
– | During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”). |
– | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board’s Contract Committee reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Board. The Board then reviewed the Contract Committee’s findings and recommendations. |
– | The Board also received extensive information throughout the year regarding performance of the Fund. |
– | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
– | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s Rule12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DIMA and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered, generally, that shareholders chose to
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invest or remain invested in the Fund knowing that DIMA managed the Fund. DIMA is part of DWS Group GmbH & Co. KGaA (“DWS Group”). DWS Group is a global asset management business that offers a wide range of investing expertise and resources, including research capabilities in many countries throughout the world. In 2018, approximately 20% of DWS Group’s shares were sold in an initial public offering, with Deutsche Bank AG owning the remaining shares.
As part of the contract review process, the Board carefully considered the fees and expenses of each DWS fund overseen by the Board in light of the fund’s performance. In many cases, this led to the negotiation and implementation of expense caps. As part of these negotiations, the Board indicated that it would consider relaxing these caps in future years following sustained improvements in performance, among other considerations.
While shareholders may focus primarily on fund performance and fees, the Fund’s Board considers these and many other factors, including the quality and integrity of DIMA’s personnel and administrative support services provided by DIMA, such as back-office operations, fund valuations, and compliance policies and procedures.
Nature, Quality and Extent of Services. The Board considered the terms of the Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DIMA provides portfolio management services to the Fund and that, pursuant to a separate administrative services agreement, DIMA provides administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel and the resources made available to such personnel. The Board reviewed the Fund’s performance over short-term and long-term periods and compared those returns to various agreed-upon performance measures, including a peer universe compiled using information supplied by iMoneyNet, an independent fund data service. The Board also noted that it has put into place a process of identifying “Funds in Review” (e.g., funds performing poorly relative to a peer universe), and receives additional reporting from DIMA regarding such funds and, where appropriate, DIMA’s plans to address underperformance. The Board believes this process is an effective manner of identifying and addressing underperforming funds. Based on the information provided, the Board noted that, for theone- and three-year periods ended December 31, 2017, the Fund’s gross performance (Service Shares) was in the 2nd quartile of the applicable iMoneyNet universe (the 1st quartile being the best performers and the 4th quartile being the worst performers).
Fees and Expenses. The Board considered the Fund’s investment management fee schedule, operating expenses and total expense ratios, and comparative information provided by Broadridge Financial Solutions, Inc. (“Broadridge”) and the Fee Consultant regarding investment management fee rates paid to other investment advisors by similar funds
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(1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates paid by the Fund, which include a 0.10% fee paid to DIMA under the Fund’s administrative services agreement, were lower than the median (1st quartile) of the applicable Broadridge peer group (based on Broadridge data provided as of December 31, 2017). Based on Broadridge data provided as of December 31, 2017, the Board noted that the Fund’s total operating expenses (excluding12b-1 fees and/or shareholder administration fees, if applicable) were lower than the median of the applicable Broadridge expense universe (less any applicable12b-1 fees) for the following share classes: DWS Government Cash Institutional Shares (2nd quartile) and Government Cash Managed Shares (2nd quartile) and higher than the median of the applicable Broadridge expense universe (less any applicable12b-1 fees) for the following share classes: Service Shares (4th quartile) and DWS Government & Agency Money Fund shares (3rd quartile). The Board noted the expense limitations agreed to by DIMA. The Board also noted the voluntary fee waivers implemented by DIMA prior to December 31, 2017 to ensure the Fund maintained a positive yield. The Board considered the Fund’s management fee rate as compared to fees charged by DIMA to comparable DWS U.S. registered funds (“DWS Funds”) and considered differences between the Fund and the comparable DWS Funds. The information requested by the Board as part of its review of fees and expenses also included information about institutional accounts (including anysub-advised funds and accounts) and funds offered primarily to European investors (“DWS Europe Funds”) managed by DWS Group. The Board noted that DIMA indicated that DWS Group does not manage any institutional accounts or DWS Europe Funds comparable to the Fund.
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DIMA.
Profitability. The Board reviewed detailed information regarding revenues received by DIMA under the Agreement. The Board considered the estimated costs to DIMA, andpre-tax profits realized by DIMA, from advising the DWS Funds, as well as estimates of thepre-tax profits attributable to managing the Fund in particular. The Board also received information regarding the estimated enterprise-wide profitability of DIMA and its affiliates with respect to all fund services in totality and by fund. The Board and the Fee Consultant reviewed DIMA’s methodology in allocating its costs to the management of the Fund. Based on the information provided, the Board concluded that thepre-tax profits realized by DIMA in connection with the management of the Fund were not unreasonable. The Board also reviewed certain publicly available information regarding the profitability of certain similar investment
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management firms. The Board noted that, while information regarding the profitability of such firms is limited (and in some cases is not necessarily prepared on a comparable basis), DIMA and its affiliates’ overall profitability with respect to the DWS Funds (after taking into account distribution and other services provided to the funds by DIMA and its affiliates) was lower than the overall profitability levels of most comparable firms for which such data was available.
Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Fund and whether the Fund benefits from any economies of scale. The Board noted that the Fund’s investment management fee schedule includes fee breakpoints. The Board concluded that the Fund’s fee schedule represents an appropriate sharing between the Fund and DIMA of such economies of scale as may exist in the management of the Fund at current asset levels.
Other Benefits to DIMA and Its Affiliates. The Board also considered the character and amount of other incidental or“fall-out” benefits received by DIMA and its affiliates, including any fees received by DIMA for administrative services provided to the Fund, any fees received by an affiliate of DIMA for transfer agency services provided to the Fund and any fees received by an affiliate of DIMA for distribution services. The Board also considered benefits to DIMA related to brokerage and soft-dollar allocations, including allocating brokerage to pay for research generated by parties other than the executing broker dealers, which pertain primarily to funds investing in equity securities. In addition, the Board considered the incidental public relations benefits to DIMA related to DWS Funds advertising and cross-selling opportunities among DIMA products and services. The Board considered these benefits in reaching its conclusion that the Fund’s management fees were reasonable.
Compliance. The Board considered the significant attention and resources dedicated by DIMA to its compliance processes in recent years. The Board noted in particular (i) the experience, seniority and time commitment of the individuals serving as DIMA’s and the Fund’s chief compliance officers and (ii) the substantial commitment of resources by DIMA and its affiliates to compliance matters, including the retention of compliance personnel.
Based on all of the information considered and the conclusions reached, the Board unanimously determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Trustees and counsel present. It is possible that individual Independent Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.
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The following table presents certain information regarding the Board Members and Officers of the Fund. Each Board Member’s year of birth is set forth in parentheses after his or her name. Unless otherwise noted, (i) each Board Member has engaged in the principal occupation(s) noted in the table for at least the most recent five years, although not necessarily in the same capacity; and (ii) the address of each Independent Board Member is c/o Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA02199-3600. Except as otherwise noted below, the term of office for each Board Member is until the election and qualification of a successor, or until such Board Member sooner dies, resigns, is removed or as otherwise provided in the governing documents of the Fund. Because the Fund does not hold an annual meeting of shareholders, each Board Member will hold office for an indeterminate period. The Board Members may also serve in similar capacities with other funds in the fund complex.
Independent Board Members | ||||||||
Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
Keith R. Fox, CFA (1954)
Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods importer and distributor); The Kennel Shop (retailer); former Chairman, National Association of Small Business Investment Companies; former Directorships: BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) (2011–2012) | 82 | — | |||||
John W. Ballantine (1946)
Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population well-being and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc. and Oak Brook Bank; Prisma Energy International; Public Radio International. Not-for-Profit Director/Trustee: Palm Beach Civic Association; Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago | 82 | Portland General Electric2 (utility company) (2003– present) |
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Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
Henry P. Becton, Jr. (1943)
Board Member since 1990 | Vice Chair and former President, WGBH Educational Foundation. Directorships: Public Radio International; Public Radio Exchange (PRX); The Pew Charitable Trusts (charitable organization); Massachusetts Humane Society; Overseer of the New England Conservatory; former Directorships: Becton Dickinson and Company2 (medical technology company); Belo Corporation2 (media company); The PBS Foundation; Association of Public Television Stations; Boston Museum of Science; American Public Television; Concord Academy; New England Aquarium; Mass. Corporation for Educational Telecommunications; Committee for Economic Development; Public Broadcasting Service; Connecticut College; North Bennett Street School (Boston); American Documentary, Inc. (public media) | 82 | — | |||||
Dawn-Marie Driscoll (1946)
Board Member since 1987 | Emeritus Executive Fellow, Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988). Directorships: Advisory Board, Center for Business Ethics, Bentley University; Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 82 | — | |||||
Richard J. Herring (1946)
Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); Director, The Wharton Financial Institutions Center (since 1994); formerly: Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Formerly Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), and Nonexecutive Director of Barclays Bank DE (2010–2018) | 82 | Director, Aberdeen Japan Fund (since 2007) |
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Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
William McClayton (1944)
Board Member since 2004 | Private equity investor (since October 2009); previously, Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001–2009); Directorship: Board of Managers, YMCA of Metropolitan Chicago; formerly: Senior Partner, Arthur Andersen LLP (accounting) (1966–2001); Trustee, Ravinia Festival | 82 | — | |||||
Rebecca W. Rimel (1951)
Board Member since 1995 | President, Chief Executive Officer and Director, The Pew Charitable Trusts (charitable organization) (1994–present); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012) | 82 | Director, Becton Dickinson and Company2 (medical technology company) (2012– present); Director, BioTelemetry Inc.2(health care) (2009– present) | |||||
William N. Searcy, Jr. (1946)
Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2(telecommunications) (November 1989–September 2003); Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 82 | — | |||||
Jean Gleason Stromberg (1943)
Board Member since 1997 | Retired. Formerly, Consultant (1997–2001); Director, Financial Markets U.S. Government Accountability Office (1996–1997); Partner, Norton Rose Fulbright, L.L.P. (law firm) (1978–1996); former Directorships: The William and Flora Hewlett Foundation (charitable organization) (2000–2015); Service Source, Inc. (nonprofit), Mutual Fund Directors Forum (2002–2004), American Bar Retirement Association (funding vehicle for retirement plans) (1987–1990 and 1994–1996) | 82 | — |
Officers4 | ||
Name, Year of Birth, Position with the Fund and Length of Time Served5 | Business Experience and Directorships During the Past Five Years | |
Hepsen Uzcan6(1974)
President and Chief Executive Officer, 2017–present | Managing Director,3 DWS; Secretary, DWS USA Corporation (since March 2018); Assistant Secretary, DWS Distributors, Inc. (since June 25, 2018); Director and Vice President, DWS Service Company (since June 25, 2018); Assistant Secretary, DWS Investment Management Americas, Inc. (since June 25, 2018); and Director and President, DB Investment Managers, Inc. (since June 25, 2018); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019) |
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Name, Year of Birth, Position with the Fund and Length of Time Served5 | Business Experience and Directorships During the Past Five Years | |
John Millette8(1962)
Vice President and Secretary, 1999–present | Director,3DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); and Director and Vice President, DWS Trust Company (2016–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017) | |
Diane Kenneally8,9(1966)
Chief Financial Officer and Treasurer, since 2018 | Director,3 DWS; formerly: Assistant Treasurer for the DWS funds (2007–2018) | |
Paul Antosca8(1957)
Assistant Treasurer, 2007–present | Director,3DWS | |
Sheila Cadogan8(1966)
Assistant Treasurer, 2017–present | Director,3DWS; Director and Vice President, DWS Trust Company (since 2018) | |
Scott D. Hogan8(1970)
Chief Compliance Officer, 2016–present | Director,3DWS | |
Caroline Pearson8(1962)
Chief Legal Officer, 2010–present | Managing Director,3DWS; formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); and Secretary, Deutsche AM Service Company (2010–2017) | |
Wayne Salit7(1967) Anti-Money Laundering Compliance Officer, 2014–present | Director,3 Deutsche Bank; and AML Officer, DWS Trust Company; formerly: Managing Director, AML Compliance Officer at BNY Mellon (2011–2014); and Director, AML Compliance Officer at Deutsche Bank (2004–2011) | |
Ciara Crawford10 (1984) Assistant Secretary, since February 8, 2019 | Associate, DWS (since 2015); previously, Legal Assistant at Accelerated Tax Solutions. |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Executive title, not a board directorship. |
4 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
5 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
6 | Address: 345 Park Avenue, New York, NY 10154. |
7 | Address: 60 Wall Street, New York, NY 10005. |
8 | Address: One International Place, Boston, MA 02110. |
9 | Appointed Treasurer and Chief Financial Officer effective July 2, 2018. |
10 | Address: 5022 Gate Parkway, Suite 400, Jacksonville, FL 32256. |
The Fund’s Statement of Additional Information (“SAI”) includes additional information about the Board Members. The SAI is available, without charge, upon request. If you would like to request a copy of the SAI, you may do so by calling the followingtoll-free number:(800) 728-3337.
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Notes
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DGCF-2
(R-027587-10 6/19)
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April 30, 2019
Annual Report
to Shareholders
DWS Government & Agency Securities Portfolio
(formerly Deutsche Government & Agency Securities Portfolio)
DWS Government & Agency Money Fund
(formerly Deutsche Government & Agency Money Fund)
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s Web site (dws.com), and you will be notified by mail each time a report is posted and provided with a Web site link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank), or if you are a direct investor, by calling (800) 728-3337 or sending an email request to service@dws.com.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 728-3337 or send an email request to service@dws.com to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with DWS if you invest directly with the Fund.
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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 dws.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.
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. You should not rely on or expect the Advisor to enter into support agreements or take other actions to maintain the Fund’s $1.00 share price. The credit quality of the Fund’s holdings can change rapidly in certain markets, and the default of a single holding could have an adverse impact on the Fund’s share price. The Fund’s share price can also be negatively affected during periods of high redemption pressures and/or illiquid markets. The actions of a few large investors in one class of shares of the Fund may have a significant adverse effect on the share prices of all classes of shares of the Fund. Please read the prospectus for specific details regarding the Fund’s risk profile.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services.
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
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Portfolio Management Review | (Unaudited) |
Market Overview
All performance information below is historical and does not guarantee future results. Investment return and principal fluctuate, so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit dws.com for the Funds’ most recentmonth-end performance. The7-day current yield refers to the income paid by the Funds over a7-day period expressed as an annual percentage rate of each Fund’s shares outstanding. Yields fluctuate and are not guaranteed.
Over the past 12 months ended April 30, 2019, yields across the money market yield curve fluctuated based on the growing U.S. economy and evolving U.S. Federal Reserve (the Fed) statements and actions. In light of continued economic strength and a tight labor market, the Federal Open Market Committee (FOMC) raised short-term rates at its June 2018 meeting. In September, the Fed once again raised rates, with accompanying statements that at the time were viewed as aggressive regarding the prospects for future rate hikes. In December, a number of factors contributed to a considerable increase in financial market volatility and a tightening in overall financial conditions. These factors included statements by the Fed following its December 2018 rate hike. In December, the Fed’s messaging disappointed market watchers because the central bank did not commit to a pause in its rate hikes, despite signs that growth was slowing in some parts of the global economy. Disappointment in the Fed’s statements during the fourth quarter of 2018 coincided with a major correction in the stock markets, an inverted yield curve (often a predictor of economic recession), a widening of credit spreads, apparent difficulties in trade talks with China, and a U.S. government shutdown.
In January, the short-term rate environment underwent a meaningful change: Responding to the significant financial market disruptions that had taken place in late 2018, the Fed pivoted dramatically, taking all of its rate hike forecasts off the table and changing from a hawkish to a neutral (to some observers, even dovish) monetary policy stance. The Fed not only walked backed its projections of fed funds rate increases, but also lowered its U.S. economic growth estimates. Money market participants took the altered short-term rate expectations even further by “pricing in” a Fed rate cut in early 2020. At the end of the12-month period, the
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market consensus was that in terms of possible short-term rate changes, the Fed would most likely be on hold for the remainder of 2019.
Positive Contributors to Fund Performance
DWS Government & Agency Securities Portfolio seeks to provide maximum current income consistent with stability of capital.
Within the DWS Government & Agency Securities Portfolio, we were able to maintain what we believe to be a competitive yield for the Fund during its annual period ended April 30, 2019. For the period, the Fund held a large percentage of portfolio assets in agency and Treasury floating-rate securities to take advantage of any rises in LIBOR and Treasury bill rates. At the same time, the Fund invested in overnight agency and Treasury repurchase agreements for liquidity and looked for yield opportunities from three- tosix-month agency and Treasury securities.
Negative Contributors to Fund Performance
The types of securities that we invested in tended to have lower yields than issues carrying more risk. We preferred to be cautious during a time of market uncertainty. In the end this may have cost the Fund some yield, but we believe that this represented a prudent approach to preserving principal.
Outlook and Positioning
We are cautious regarding current U.S. economic policy, the global geopolitical situation, and the agenda on trade that the administration is pursuing. However, we believe that the economy can continue to expand, though with a possible slowdown later this year or early in 2020. For now we are positioning the Fund for continued growth. With no Fed rate hikes projected in the coming months, we plan to continue our current portfolio strategy until there is a significant shift in the market environment.
We continue our insistence on what we believe to be the highest credit quality within the Fund. We also plan to maintain what we believe to be our conservative investment strategies and standards under the current market conditions. We continue to apply what we believe to be a careful approach to investing on behalf of the Fund and to seek competitive yield for our shareholders.
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Fund Performance(as of April 30, 2019)
Performance is historical and does not guarantee future results. Current performance may be lower or higher than the performance data quoted.
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
7-Day Current Yield | ||||
DWS Government & Agency Money Fund | 2.29%* |
Yields are historical, will fluctuate and do not guarantee future performance. The7-day current yield refers to the income paid by the Fund over a7-day period expressed as an annual percentage rate of the Fund’s shares outstanding. For the most current yield information, visit our Web site at dws.com.
* | The 7-Day Current Yield would have been 2.16%, had certain expenses not been reduced. |
Portfolio Management Team
A group of investment professionals is responsible for theday-to-day management of the Fund. These investment professionals have a broad range of experience managing money market funds.
The views expressed reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The management team’s views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Past performance is no guarantee of future results. Current and future portfolio holdings are subject to risk.
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Terms to Know
Theyield curve is a graphical representation of how yields on bonds of different maturities compare. Normally, yield curves slant up, as bonds with longer maturities typically offer higher yields than short-term bonds.
Floating-rate securities are debt instruments with floating-rate coupons that generally reset every 30 to 90 days. While floating-rate securities are senior to equity and fixed-income securities, there is no guaranteed return of principal in case of default. Floating-rate issues often have less interest-rate risk than other fixed-income investments. Floating-rate securities are most often secured assets, generally senior to a company’s secured debt, and can be transferred to debt holders, resulting in potential downside risk.
LIBOR, or London Interbank Offered Rate, is a benchmark rate that some of the world’s leading banks charge each other for short-term loans. LIBOR serves as the first step to calculating interest rates on various loans throughout the world.
Arepurchase agreement, or “overnight repo,” is an agreement between a seller and a buyer, usually of government securities, where the seller agrees to repurchase the securities at a given price and usually at a stated time. Repos are widely used money market instruments that serve as an interest-bearing, short-term “parking place” for large sums of money.
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Portfolio Summary | (Unaudited) |
DWS Government & Agency Securities Portfolio
Asset Allocation (As a % of Investment Portfolio) | 4/30/19 | 4/30/18 | ||||||
Government & Agency Obligations | 57% | 82% | ||||||
Repurchase Agreements | 43% | 18% | ||||||
100% | 100% | |||||||
Weighted Average Maturity | 4/30/19 | 4/30/18 | ||||||
Cash Account Trust — DWS Government & Agency | ||||||||
Securities Portfolio | 21 days | 33 days | ||||||
iMoneyNet Government & Agencies Retail Money Fund Average* | 29 days | 31 days |
* | The Fund is compared to its respective iMoney Net Category: Government & Agencies Retail Money Fund Average consists of allnon-institutional government money market funds. Category includes the most broadly based of the government retail funds. These funds can invest in U.S. Treasuries, U.S. Other, Repos, whether or not they are backed by U.S. Treasuries andgovernment-backed Floating Rate Notes. |
Weighted average maturity, also known as effective maturity, is the weighted average of the maturity date of bonds held by the Fund taking into consideration any available maturity shortening features.
Portfolio holdings and characteristics are subject to change.
For more complete details about the Fund’s holdings, see pages 8–11. A quarterly Fact Sheet is available on dws.com or upon request.
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Investment Portfolio | as of April 30, 2019 |
Principal Amount ($) | Value ($) | |||||||
Government & Agency Obligations 56.5% | ||||||||
U.S. Government Sponsored Agencies 55.6% | ||||||||
Federal Farm Credit Bank: | ||||||||
1-month LIBOR minus 0.123%, 2.35%**, 8/13/2019 | 25,000,000 | 25,000,000 | ||||||
1-month LIBOR minus 0.095%, 2.382%**, 7/25/2019 | 12,000,000 | 11,999,964 | ||||||
1-month LIBOR minus 0.075%, 2.402%**, 11/5/2019 | 18,000,000 | 17,999,051 | ||||||
1-month LIBOR minus 0.050%, 2.427%**, 2/25/2020 | 20,000,000 | 19,999,260 | ||||||
1-month LIBOR minus 0.050%, 2.429%**, 2/4/2020 | 32,000,000 | 32,000,000 | ||||||
1-month LIBOR minus 0.035%, 2.452%**, 8/20/2020 | 48,500,000 | 48,500,000 | ||||||
1-month LIBOR minus 0.025%, 2.454%**, 5/29/2020 | 12,500,000 | 12,499,327 | ||||||
1-month LIBOR plus 0.010%, 2.497%**, 8/19/2020 | 7,500,000 | 7,501,060 | ||||||
3-month LIBOR minus 0.180%, 2.556%**, 11/1/2019 | 25,000,000 | 25,000,000 | ||||||
2.626%*, 8/21/2019 | 10,000,000 | 9,919,422 | ||||||
1-month LIBOR plus 0.190%, 2.677%**, 6/20/2019 | 30,000,000 | 30,011,044 | ||||||
Federal Home Loan Bank: | ||||||||
2.49%, 5/6/2019 | 20,000,000 | 19,999,962 | ||||||
1-month LIBOR minus 0.125%, 2.362%**, 6/21/2019 | 40,000,000 | 40,000,000 | ||||||
3-month LIBOR minus 0.023%, 2.385%**, 12/3/2019 | 25,000,000 | 25,000,000 | ||||||
1-month LIBOR minus 0.085%, 2.388%**, 9/13/2019 | 38,000,000 | 38,000,000 | ||||||
3-month LIBOR minus 0.020%, 2.401%**, 1/16/2020 | 14,000,000 | 14,000,000 | ||||||
1-month LIBOR minus 0.065%, 2.414%**, 8/28/2019 | 18,500,000 | 18,500,000 | ||||||
1-month LIBOR minus 0.060%, 2.414%**, 12/6/2019 | 30,000,000 | 30,000,000 | ||||||
1-month LIBOR minus 0.055%, 2.418%**, 1/14/2020 | 30,000,000 | 30,000,000 | ||||||
2.423%*, 7/9/2019 | 40,000,000 | 39,816,767 | ||||||
3-month LIBOR minus 0.019%, 2.439%**, 8/28/2019 | 35,000,000 | 35,000,000 | ||||||
2.443%*, 8/15/2019 | 25,000,000 | 24,822,597 | ||||||
2.449%*, 6/12/2019 | 20,000,000 | 19,943,650 | ||||||
3-month LIBOR minus 0.245%, 2.449%**, 8/16/2019 | 35,000,000 | 34,993,606 | ||||||
3-month LIBOR minus 0.135%, 2.469% **, 4/13/2020 | 25,000,000 | 25,000,000 | ||||||
1-month LIBOR minus 0.010%, 2.476%**, 9/1/2020 | 20,000,000 | 20,000,000 | ||||||
2.486%*, 9/11/2019 | 48,000,000 | 47,565,179 | ||||||
3-month LIBOR minus 0.195%, 2.498%**, 2/14/2020 | 35,000,000 | 35,000,000 | ||||||
2.5%, 5/7/2019 | 44,000,000 | 43,999,898 | ||||||
SOFR plus 0.020%, 2.5%**, 8/27/2019 | 30,000,000 | 30,000,000 | ||||||
SOFR plus 0.025%, 2.505%**, 9/20/2019 | 8,500,000 | 8,500,000 | ||||||
SOFR plus 0.030%, 2.51%**, 10/9/2019 | 32,000,000 | 32,000,000 | ||||||
SOFR plus 0.035%, 2.515%**, 2/21/2020 | 28,000,000 | 28,000,000 | ||||||
SOFR plus 0.040%, 2.52%**, 6/21/2019 | 30,000,000 | 30,000,000 | ||||||
2.53%*, 5/31/2019 | 10,000,000 | 9,979,208 | ||||||
SOFR plus 0.060%, 2.54%**, 9/10/2019 | 28,000,000 | 28,000,000 | ||||||
SOFR plus 0.065%, 2.545%**, 11/15/2019 | 22,500,000 | 22,500,000 | ||||||
2.58%, 3/30/2020 | 62,000,000 | 62,000,000 |
The accompanying notes are an integral part of the financial statements.
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Principal Amount ($) | Value ($) | |||||||
SOFR plus 0.105%, 2.585%**, 10/1/2020 | 20,000,000 | 20,000,000 | ||||||
2.596%*, 7/29/2019 | 35,000,000 | 34,778,489 | ||||||
Federal Home Loan Mortgage Corp.: | ||||||||
1-month LIBOR minus 0.110%, 2.369%**, 5/28/2019 | 33,000,000 | 33,000,000 | ||||||
1-month LIBOR minus 0.100%, 2.374%**, 8/8/2019 | 68,000,000 | 67,998,958 | ||||||
2.454%*, 6/5/2019 | 50,000,000 | 49,882,361 | ||||||
SOFR minus 0.01%, 2.47%**, 5/20/2019 | 41,000,000 | 41,000,000 | ||||||
SOFR minus 0.01%, 2.47%**, 5/22/2019 | 50,000,000 | 50,000,000 | ||||||
SOFR minus 0.01%, 2.47%**, 8/5/2019 | 60,000,000 | 60,000,000 | ||||||
SOFR plus 0.010%, 2.49%**, 7/11/2019 | 14,000,000 | 14,000,000 | ||||||
SOFR plus 0.025%, 2.505%**, 5/8/2019 | 38,750,000 | 38,750,000 | ||||||
SOFR plus 0.030%, 2.51%**, 6/19/2019 | 32,000,000 | 32,000,000 | ||||||
Federal National Mortgage Association: | ||||||||
SOFR plus 0.060%, 2.54%**, 7/30/2020 | 16,500,000 | 16,500,000 | ||||||
SOFR plus 0.070%, 2.55%**, 10/30/2019 | 5,000,000 | 5,000,000 | ||||||
SOFR plus 0.075%, 2.555%**, 10/30/2020 | 22,000,000 | 22,000,000 | ||||||
SOFR plus 0.010%, 2.58%**, 4/30/2020 | 5,000,000 | 5,000,000 | ||||||
|
| |||||||
1,522,959,803 | ||||||||
U.S. Treasury Obligation 0.9% | ||||||||
U.S. Treasury Bill, 2.514%*, 6/13/2019 | 25,590,000 | 25,514,197 | ||||||
| ||||||||
Total Government & Agency Obligations(Cost $1,548,474,000) |
| 1,548,474,000 | ||||||
Repurchase Agreements 43.0% | ||||||||
Barclays Bank PLC, 2.75%, dated 4/30/2019, to be repurchased at $350,026,736 on 5/1/2019 (a) | 350,000,000 | 350,000,000 | ||||||
BNP Paribas, 2.75%, dated 4/30/2019, to be repurchased at $345,626,400 on 5/1/2019 (b) | 345,600,000 | 345,600,000 | ||||||
HSBC Securities, Inc., 2.75%, dated 4/30/2019, to be repurchased at $177,413,551 on 5/1/2019 (c) | 177,400,000 | 177,400,000 | ||||||
Wells Fargo Bank, 2.77%, dated 4/30/2019, to be repurchased at $303,481,349 on 5/1/2019 (d) | 303,458,000 | 303,458,000 | ||||||
| ||||||||
Total Repurchase Agreements(Cost $1,176,458,000) | 1,176,458,000 |
The accompanying notes are an integral part of the financial statements.
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% of Net Assets | Value ($) | |||||||
Total Investment Portfolio(Cost $2,724,932,000) | 99.5 | 2,724,932,000 | ||||||
Other Assets and Liabilities, Net | 0.5 | 13,333,511 | ||||||
| ||||||||
Net Assets | 100.0 | 2,738,265,511 |
* | Annualized yield at time of purchase; not a coupon rate. |
** | Floating rate security. These securities are shown at their current rate as of April 30, 2019. |
(a) | Collateralized by $356,634,000 U.S. Treasury Bonds, 2.25%, with various maturity dates of3/31/2021-4/30/2021 with a value of $357,000,076. |
(b) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) | ||||||||
16,477,700 | U.S. Treasury Bills | Zero Coupon | 6/20/2019 | 16,422,005 | ||||||||
284,000 | U.S. Treasury Bonds | 2.125 | 8/15/2021 | 284,158 | ||||||||
333,794,200 | U.S. Treasury Notes | 1.875–2.75 | 3/15/2021–4/30/2026 | 335,805,875 | ||||||||
Total Collateral Value | 352,512,038 |
(c) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) | ||||||||
66,737,800 | U.S. Treasury Bonds | 1.25–1.75 | 10/31/2019–11/30/2021 | 66,375,862 | ||||||||
144,925,423 | U.S. Treasury STRIPS | Zero Coupon | 8/15/2025–5/15/2047 | 114,572,143 | ||||||||
Total Collateral Value | 180,948,005 |
(d) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) | ||||||||
192,746,394 | Federal National Mortgage Association | 3–4.5 | 10/1/2033–3/1/2049 | 194,786,956 | ||||||||
115,138,672 | Federal National Mortgage Corp. — Interest Only | 2.5–5 | 1/1/2034–5/1/2049 | 114,740,204 | ||||||||
Total Collateral Value | 309,527,160 |
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
SOFR: Secured Overnight Financing Rate
STRIPS: Separate Trading of Registered Interest and Principal Securities
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3
The accompanying notes are an integral part of the financial statements.
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includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Securities held by the Fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments in Securities (e) | $ | — | $ | 1,548,474,000 | $ | — | $ | 1,548,474,000 | ||||||||
Repurchase Agreements | — | 1,176,458,000 | — | 1,176,458,000 | ||||||||||||
Total | $ | — | $ | 2,724,932,000 | $ | — | $ | 2,724,932,000 |
(e) | See Investment Portfolio for additional detailed categorizations. |
The accompanying notes are an integral part of the financial statements.
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Statement of Assets and Liabilities
as of April 30, 2019 |
| |||
Assets | | DWS Government & Agency Securities Portfolio |
| |
Investment in securities, valued at amortized cost | $ | 1,548,474,000 | ||
Repurchased agreements, valued at amortized cost | 1,176,458,000 | |||
Cash | 28,914,850 | |||
Receivable for Fund shares sold | 5,921,099 | |||
Interest receivable | 4,067,332 | |||
Other assets | 84,582 | |||
Total assets | 2,763,919,863 | |||
Liabilities |
| |||
Payable for investments purchased | 20,000,000 | |||
Payable for Fund shares redeemed | 1,389,196 | |||
Distributions payable | 3,594,110 | |||
Accrued management fee | 39,232 | |||
Accrued Trustees’ fees | 38,447 | |||
Other accrued expenses and payables | 593,367 | |||
Total liabilities | 25,654,352 | |||
Net assets, at value | $ | 2,738,265,511 | ||
Net Assets Consist of |
| |||
Distributable earnings (loss) | 148,995 | |||
Paid-in capital | 2,738,116,516 | |||
Net assets, at value | $ | 2,738,265,511 |
The accompanying notes are an integral part of the financial statements.
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Statement of Assets and Liabilitiesas of April 30, 2019 (continued) |
Net Asset Value | | DWS Government & Agency Securities Portfolio |
| |
DWS Government & Agency Money Fund |
| |||
Net Asset Value, offering and redemption price per share ($213,967,551 ÷ 213,972,747 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 ($2,333,884,456 ÷ 2,333,942,335 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 ($173,913,987 ÷ 173,918,298 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 ($16,499,517 ÷ 16,499,926 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.
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For the year ended April 30, 2019 | ||||
Investment Income | | DWS Government & Agency Securities Portfolio |
| |
Income: | ||||
Interest | $ | 73,480,927 | ||
Expenses: | ||||
Management fee | 2,594,244 | |||
Administration fee | 3,452,936 | |||
Services to shareholders | 775,225 | |||
Distribution and service fees | 432,700 | |||
Custodian fee | 32,702 | |||
Professional fees | 177,192 | |||
Reports to shareholders | 90,969 | |||
Registration fees | 97,051 | |||
Trustees’ fees and expenses | 148,792 | |||
Other | 214,432 | |||
Total expenses before expense reductions | 8,016,243 | |||
Expense reductions | (2,477,579 | ) | ||
Total expenses after expense reductions | 5,538,664 | |||
Net investment income | 67,942,263 | |||
Net realized gain (loss) from investments | (53,787 | ) | ||
Net increase (decrease) in net assets resulting from operations | $ | 67,888,476 |
The accompanying notes are an integral part of the financial statements.
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Statements of Changes in Net Assets
DWS Government & Agency Securities Portfolio | ||||||||
Years Ended April 30, | ||||||||
Increase (Decrease) in Net Assets | 2019 | 2018 | ||||||
Operations: | ||||||||
Net investment income | $ | 67,942,263 | $ | 49,932,527 | ||||
Net realized gain (loss) | (53,787 | ) | 14,967 | |||||
Net increase in net assets resulting from operations | 67,888,476 | 49,947,494 | ||||||
Distributions to shareholders: | ||||||||
DWS Government & Agency Money Fund | (3,382,007 | ) | (1,360,880 | ) | ||||
DWS Government Cash Institutional Shares | (60,835,410 | ) | (46,766,865 | ) | ||||
Government Cash Managed Shares | (3,456,004 | ) | (1,689,030 | ) | ||||
Service Shares | (269,527 | ) | (115,061 | ) | ||||
Total distributions | (67,942,948 | ) | (49,931,836 | )* | ||||
Fund share transactions: | ||||||||
Proceeds from shares sold | 92,680,038,672 | 89,540,877,369 | ||||||
Reinvestment of distributions | 15,062,485 | 7,913,702 | ||||||
Payments for shares redeemed | (94,673,626,673 | ) | (89,445,003,701 | ) | ||||
Net increase (decrease) in net assets from Fund share transactions | (1,978,525,516 | ) | 103,787,370 | |||||
Increase (decrease) in net assets | (1,978,579,988 | ) | 103,803,028 | |||||
Net assets at beginning of year | 4,716,845,499 | 4,613,042,471 | ||||||
Net assets at end of year | $ | 2,738,265,511 | $ | 4,716,845,499 | ** |
* | Includes distributions from net investment income. |
** | Includes undistributed net investment income of $205,206. |
The accompanying notes are an integral part of the financial statements.
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DWS Government & Agency Securities Portfolio
DWS Government & Agency Money Fund
Years Ended April 30, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Selected Per Share Data |
| |||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | .020 | .010 | .003 | .000 | * | .000 | * | |||||||||||||
Net realized gain (loss) | (.000 | )* | .000 | * | .000 | * | (.000 | )* | .000 | * | ||||||||||
Total from investment operations | .020 | .010 | .003 | .000 | * | .000 | * | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (.020 | ) | (.010 | ) | (.003 | ) | (.000 | )* | (.000 | )* | ||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Total Return (%)a | 1.99 | 1.03 | .31 | .05 | .01 | |||||||||||||||
Ratios to Average Net Assets and Supplemental Data |
| |||||||||||||||||||
Net assets, end of period ($ millions) | 214 | 132 | 145 | 84 | 84 | |||||||||||||||
Ratio of expenses before expense reductions (%) | .28 | .30 | .30 | .28 | .27 | |||||||||||||||
Ratio of expenses after expense reductions (%) | .21 | .19 | .19 | .18 | .08 | |||||||||||||||
Ratio of net investment income (%) | 2.01 | 1.01 | .33 | .05 | .01 |
a | Total return would have been lower had certain expenses not been reduced. |
* | Amount is less than $.0005. |
The accompanying notes are an integral part of the financial statements.
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Notes to Financial Statements |
A. 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 anopen-end management investment company organized as a Massachusetts business trust.
The Trust offers two funds: DWS Government & Agency Securities Portfolio (formerly Deutsche Government & Agency Securities Portfolio) and DWSTax-Exempt Portfolio (formerly Deutsche Tax-Exempt Portfolio). These financial statements report on DWS Government & Agency Securities Portfolio (the “Fund”).
DWS Government & Agency Securities Portfolio offers four classes of shares: DWS Government & Agency Money Fund (formerly Deutsche Government & Agency Money Fund), DWS Government Cash Institutional Shares (formerly Deutsche Government Cash Institutional Shares), Government Cash Managed Shares and Service Shares.
The financial highlights for all classes of shares, other than DWS Government & Agency Money Fund, are provided separately and are available upon request.
The Fund’s investment income, realized gains and losses, and certainFund-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 the Fund, except that each class bears certain expenses unique to that class such as distribution and service fees, services to shareholders and certain otherclass-specific expenses. Differences inclass-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 toclass-specific arrangements.
The Fund’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which require the use of management estimates. Actual results could differ from those estimates. The Fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of U.S. GAAP. The policies described below are followed consistently by the Fund in the preparation of its financial statements.
In October 2018, the Securities and Exchange Commission adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification, which is intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. Effective with the current reporting period, the
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Fund adopted the amendments with the impacts being that the Fund is no longer required to present components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributable earnings and the amount of undistributed net investment income on the Statements of Changes in Net Assets.
Security Valuation. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The Fund values all securities utilizing the amortized cost method permitted in accordance with Rule2a-7 under the 1940 Act and certain conditions therein. Under this method, which does not take into account unrealized capital gains or losses on securities, an instrument is initially valued at its cost and thereafter assumes a constant accretion/amortization rate to maturity of any discount or premium. Securities held by the Fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
Disclosure about the classification of fair value measurements is included in a table following the Fund’s Investment Portfolio.
Repurchase Agreements. The Fund may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with certain banks and broker/dealers whereby the Fund, through its custodian or asub-custodian bank, receives delivery of the underlying securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the market value is equal to at least the principal amount of the repurchase price plus accrued interest. The custodial bank or another designated subcustodian bank holds the collateral in a separate account until the agreement matures. If the value of the securities falls below the principal amount of the repurchase agreement plus accrued interest, the financial institution deposits additional collateral by the following business day. If the financial institution either fails to deposit the required additional collateral or fails to repurchase the securities as agreed, the Fund has the right to sell the securities and recover any resulting loss from the financial institution. If the financial institution enters into bankruptcy, the Fund’s claims on the collateral may be subject to legal proceedings.
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As of April 30, 2019, the Fund held repurchase agreements with a gross value of $1,176,458,000. The value of the related collateral exceeded the value of the repurchase agreements at period end. The detail of the related collateral is included in the footnotes following the Fund’s Investment Portfolio.
Federal Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies and to distribute all of its taxable andtax-exempt income to its shareholders.
At April 30, 2019, DWS Government & Agency Securities Portfolio had a net tax basis capital loss carryforward of approximately $56,000 of short-term losses, which may be applied against any realized net taxable capital gains indefinitely.
The Fund has reviewed the tax positions for the open tax years as of April 30, 2019 and has determined that no provision for income tax and/or uncertain tax positions is required in the Fund’s financial statements. The Fund’s federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service.
Distribution of Income. Net investment income of the Fund is declared as a daily dividend and is distributed to shareholders monthly. The Fund may take into account capital gains and losses in its daily dividend declarations. The Fund may also make additional distributions for tax purposes if necessary.
Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Temporary book and tax basis differences will reverse in a subsequent period. There were nobook-to-tax differences for the Fund.
At April 30, 2019, the Fund’s components of distributable earnings (accumulated losses) on a tax basis are as follows:
DWS Government & Agency Securities Portfolio: | ||||
Undistributed ordinary income* | $ | 3,798,631 | ||
Capital loss carryforwards | $ | (56,000 | ) |
At April 30, 2019, DWS Government & Agency Securities Portfolio had an aggregate cost of investments for federal income tax purposes of $2,724,932,000.
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In addition, the tax character of distributions paid to shareholders by the Fund is summarized as follows:
Years Ended April 30, | ||||||||
2019 | 2018 | |||||||
DWS Government & Agency Securities Portfolio: |
| |||||||
Distributions from ordinary income* | $ | 67,942,948 | $ | 49,931,836 |
* | For tax purposes,short-term capital gain distributions are considered ordinary income distributions. |
Expenses. Expenses of the Trust arising in connection with a specific Fund are allocated to that Fund. Other Trust expenses which cannot be directly attributed to a Fund are apportioned pro rata on the basis of relative net assets among the funds in the Trust.
Contingencies. In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.
Other. Investment transactions are accounted for on trade date. Interest income is recorded on the accrual basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. All discounts and premiums are accreted/amortized for both tax and financial reporting purposes.
B. Related Parties
Management Agreement. Under an Amended and Restated Investment Management Agreement with DWS Investment Management Americas, Inc. (formerly Deutsche Investment Management Americas Inc.) (“DIMA” or the “Advisor”), an indirect, wholly owned subsidiary of DWS Group GmbH & Co. KGaA (“DWS Group”), the Advisor directs the investments of the Fund in accordance with its investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Fund.
The monthly management fee for the Fund is computed based on the combined average daily net assets of the two funds of the Trust and allocated to the Fund based on its relative net assets, computed and accrued daily and payable monthly, at the following annual rates:
First $500 million of the Funds’ 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% |
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Accordingly, for the year ended April 30, 2019, the fee pursuant to the Investment Management Agreement on DWS Government & Agency Securities Portfolio was equivalent to an annual rate (exclusive of any applicable waivers/reimbursements) of 0.08% of the Fund’s average daily net assets.
The Advisor has agreed to contractually reduce its management fee for the Fund such that the annualized effective rate is limited to 0.05% of the Fund’s average daily net assets.
For the period from May 1, 2018 through September 30, 2019, the Advisor has contractually agreed to waive its fees and/or reimburse certain operating expenses of the DWS Government & Agency Money Fund to the extent necessary to maintain the total annual operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest) at 0.45%.
In addition, the Advisor has agreed to voluntarily waive additional expenses. The voluntary waiver may be changed or terminated at any time without notice. Under these arrangements, the Advisor waived certain expenses on DWS Government & Agency Money Fund.
The Advisor has also agreed to maintain expenses of certain other classes of the Trust. These rates are disclosed in the respective share classes’ annual reports that are provided separately and are available upon request.
For the year ended April 30, 2019, fees waived and/or expenses reimbursed for each class are as follows:
DWS Government & Agency Money Fund | $ | 112,077 | ||
DWS Government Cash Institutional Shares | 2,202,358 | |||
Government Cash Managed Shares | 146,710 | |||
Service Shares | 16,434 | |||
$ | 2,477,579 |
Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays the Advisor an annual fee (“Administration Fee”) of 0.10% of the Fund’s average daily net assets, computed and accrued daily and payable monthly. For the year ended April 30, 2019, the Administration Fee was as follows:
Fund | Administration Fee | Unpaid at April 30, 2019 | ||||||
DWS Government & Agency Securities Portfolio | $ | 3,452,936 | $ | 230,641 |
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Service Provider Fees. DWS Service Company (“DSC”), an affiliate of the Advisor, is the transfer agent,dividend-paying agent and shareholder service agent for the Fund. Pursuant to asub-transfer agency agreement between DSC and DST Systems, Inc. (“DST”), DSC has delegated certain transfer agent,dividend-paying agent and shareholder service agent functions to DST. DSC compensates DST out of the shareholder servicing fee it receives from the Fund. For the year ended April 30, 2019, the amounts charged to the Fund by DSC were as follows:
DWS Government & Agency Securities Portfolio: | Total Aggregated | Unpaid at April 30, 2019 | ||||||
DWS Government & Agency Money Fund | $ | 65,246 | $ | 10,778 | ||||
DWS Government Cash Institutional Shares | 410,822 | 52,030 | ||||||
Government Cash Managed Shares | 129,450 | 25,490 | ||||||
Service Shares | 61,573 | 4,811 | ||||||
$ | 667,091 | $ | 93,109 |
In addition, for the year ended April 30, 2019, the amount charged to the Fund for recordkeeping and other administrative services provided by unaffiliated third parties, included in the Statement of Operations under “Services to shareholders,” was as follows:
Sub-Recordkeeping | Total Aggregated | |||
DWS Government & Agency Money Fund | $ | 63,805 |
Distribution Service Agreement. Under the Distribution Service Agreement, in accordance with Rule12b-1 under the 1940 Act, DWS Distributors, Inc. (“DDI”), 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 year ended April 30, 2019, the Distribution Fee was as follows:
DWS Government & Agency Securities Portfolio: | Distribution Fee | Unpaid at April 30, 2019 | Annual Rate | Contractual Rate | ||||||||||||
Service Shares | $ | 148,739 | $ | 6,881 | .60 | % | .60 | % |
In addition, DDI 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 Rule12b-1 plan.
For the year ended April 30, 2019, the Service Fee was as follows:
DWS Government & Agency Securities Portfolio: | Service Fee | Unpaid at April 30, 2019 | Annual Rate | Contractual Rate | ||||||||||||
Government Cash Managed Shares | $ | 283,961 | $ | 22,991 | .15 | % | .15 | % |
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Typesetting and Filing Service Fees. Under an agreement with the Fund, DIMA is compensated for providing certainpre-press and regulatory filing services to the Fund. For the year ended April 30, 2019, the amount charged to the Fund by DIMA included in the Statement of Operations under “Reports to shareholders“ was as follows:
Fund | Total Aggregated | Unpaid at April 30, 2019 | ||||||
DWS Government & Agency Securities Portfolio | $ | 29,934 | $ | 14,489 |
Trustees’ Fees and Expenses. The Fund paid retainer fees to each Trustee not affiliated with the Advisor, plus specified amounts to the Board Chairperson and to each committee Chairperson.
C. Line of Credit
The Fund and other affiliated funds (the “Participants”) share in a $400 million revolving credit facility provided by a syndication of banks. The Fund may borrow for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the 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 theone-month LIBOR exceeds the Federal Funds Rate, the amount of such excess. The Fund may borrow up to a maximum of 33 percent of its net assets under the agreement. The Fund had no outstanding loans at April 30, 2019.
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D. Fund Share Transactions
The following table summarizes share and dollar activity in the Fund:
DWS Government & Agency Securities Portfolio
Year Ended April 30, 2019 | Year Ended April 30, 2018 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Shares sold |
| |||||||||||||||
DWS Government & Agency Money Fund | 306,947,300 | $ | 306,947,300 | 143,710,246 | $ | 143,710,246 | ||||||||||
DWS Government Cash Institutional Shares | 91,279,295,482 | 91,279,295,482 | 88,074,168,877 | 88,074,168,877 | ||||||||||||
Government Cash Managed Shares | 965,718,437 | 965,718,437 | 1,105,848,695 | 1,105,848,695 | ||||||||||||
Service Shares | 128,077,453 | 128,077,453 | 217,149,610 | 217,149,610 | ||||||||||||
Account Maintenance Fees | — | — | — | (59 | ) | |||||||||||
$ | 92,680,038,672 | $ | 89,540,877,369 | |||||||||||||
Shares issued to shareholders in reinvestment of distributions |
| |||||||||||||||
DWS Government & Agency Money Fund | 3,331,892 | $ | 3,331,892 | 1,336,368 | $ | 1,336,368 | ||||||||||
DWS Government Cash Institutional Shares | 10,340,704 | 10,340,704 | 5,866,419 | 5,866,419 | ||||||||||||
Government Cash Managed Shares | 1,138,641 | 1,138,641 | 596,039 | 596,039 | ||||||||||||
Service Shares | 251,248 | 251,248 | 114,876 | 114,876 | ||||||||||||
$ | 15,062,485 | $ | 7,913,702 |
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Year Ended April 30, 2019 | Year Ended April 30, 2018 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Shares redeemed |
| |||||||||||||||
DWS Government & Agency Money Fund | (228,757,444 | ) | $ | (228,757,444 | ) | (158,011,883 | ) | $ | (158,011,883 | ) | ||||||
DWS Government Cash Institutional Shares | (93,306,190,114 | ) | (93,306,190,114 | ) | (87,965,664,489 | ) | (87,965,664,489 | ) | ||||||||
Government Cash Managed Shares | (980,618,887 | ) | (980,618,887 | ) | (1,118,258,613 | ) | (1,118,258,613 | ) | ||||||||
Service Shares | (158,060,228 | ) | (158,060,228 | ) | (203,068,716 | ) | (203,068,716 | ) | ||||||||
$ | (94,673,626,673 | ) | $ | (89,445,003,701 | ) | |||||||||||
Net increase (decrease) |
| |||||||||||||||
DWS Government & Agency Money Fund | 81,521,748 | $ | 81,521,748 | (12,965,269 | ) | $ | (12,965,269 | ) | ||||||||
DWS Government Cash Institutional Shares | (2,016,553,928 | ) | (2,016,553,928 | ) | 114,370,807 | 114,370,807 | ||||||||||
Government Cash Managed Shares | (13,761,809 | ) | (13,761,809 | ) | (11,813,879 | ) | (11,813,879 | ) | ||||||||
Service Shares | (29,731,527 | ) | (29,731,527 | ) | 14,195,770 | 14,195,770 | ||||||||||
Account Maintenance Fees | — | — | — | (59 | ) | |||||||||||
$ | (1,978,525,516 | ) | $ | 103,787,370 |
E. Ownership of the Fund
From time to time, the Fund may have a concentration of several shareholder accounts holding a significant percentage of shares outstanding. Investment activities of these shareholders could have a material impact on the Fund.
At April 30, 2019, 25% of the outstanding shares of the Fund was held by other affiliated DWS funds shareholder accounts as a cash management vehicle for the cash collateral received in connection with the securities lending program of the DWS family of funds.
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Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Cash Account Trust and Shareholders of DWS Government & Agency Securities Portfolio:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of DWS Government & Agency Securities Portfolio (formerly Deutsche Government & Agency Securities Portfolio) (the “Fund”) (one of the funds constituting Cash Account Trust) (the “Trust”), including the investment portfolio, as of April 30, 2019, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Cash Account Trust) at April 30 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are
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required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2019, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies in the DWS family of funds since at least 1979, but we are unable to determine the specific year.
Boston, Massachusetts
June 19, 2019
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Information About Your Fund’s Expenses
As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service(12b-1) fees and other Fund expenses. Examples of transaction costs include account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recentsix-month period, the Fund limited these expenses; had it not done so, expenses would have been higher for the DWS Government & Agency Money Fund. The example in the table is based on an investment of $1,000 invested at the beginning of thesix-month period and held for the entire period (November 1, 2018 to April 30, 2019).
The tables illustrate your Fund’s expenses in two ways:
– | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
– | Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The “Expenses Paid per $1,000” line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. If these transaction costs had been included, your costs would have been higher.
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Expenses and Value of a $1,000 Investment for the six months ended April 30, 2019 (Unaudited) | ||||
Actual Fund Return | DWS Government & Agency Money Fund | |||
Beginning Account Value 11/1/18 | $ | 1,000.00 | ||
Ending Account Value 4/30/19 | $ | 1,010.90 | ||
Expenses Paid per $1,000* | $ | 1.05 | ||
Hypothetical 5% Fund Return | ||||
Beginning Account Value 11/1/18 | $ | 1,000.00 | ||
Ending Account Value 4/30/19 | $ | 1,023.75 | ||
Expenses Paid per $1,000* | $ | 1.05 |
* | Expenses are equal to the Fund’s annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recentsix-month period), then divided by 365. |
Annualized Expense Ratio | ||||
DWS Government & Agency Money Fund | .21 | % |
For more information, please refer to the Fund’s prospectus.
For an analysis of the fees associated with an investment in the Fund or similar funds, please refer to tools.finra.org/fund_analyzer/.
Tax Information | (Unaudited) |
A total of 62% of the dividends distributed during the fiscal year was derived from interest on U.S. government securities, which is generally exempt from state income tax.
Please consult a tax advisor if you have questions about federal or state income tax laws, or on how to prepare your tax returns. If you have specific questions about your account, please call(800) 728-3337.
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Proxy Voting
The Fund’s policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 are available on our Web site —dws.com/en-us/resources/proxy-voting — or on the SEC’s Web site — sec.gov. To obtain a written copy of the Fund’s policies and procedures without charge, upon request, call us toll free at (800)728-3337.
Portfolio Holdings
Following the Fund’s fiscal first and thirdquarter-end, a complete portfolio holdings listing was filed with the SEC on FormN-Q. Effective from and after the Fund’s first fiscal quarter-end of 2019, Form N-Q is rescinded and will not be filed with the SEC. In addition, each month, information about the Fund and its portfolio holdings is filed with the SEC on FormN-MFP. The SEC delays the public availability of the information filed onForm N-MFP for 60 days after the end of the reporting period included in the filing. These forms will be available on the SEC’s Web site at sec.gov. The Fund’s portfolio holdings are also posted on dws.com as of each month-end. Please see the Fund’s current prospectus for more information.
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Advisory Agreement Board Considerations and Fee Evaluation
The Board of Trustees (hereinafter referred to as the “Board” or “Trustees”) approved the renewal of DWS Government & Agency Securities Portfolio’s (the “Fund”) investment management agreement (the “Agreement”) with DWS Investment Management Americas, Inc. (“DIMA”) in September 2018.
In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:
– | During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”). |
– | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board’s Contract Committee reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Board. The Board then reviewed the Contract Committee’s findings and recommendations. |
– | The Board also received extensive information throughout the year regarding performance of the Fund. |
– | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
– | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s Rule12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DIMA and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered, generally, that shareholders chose to
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invest or remain invested in the Fund knowing that DIMA managed the Fund. DIMA is part of DWS Group GmbH & Co. KGaA (“DWS Group”). DWS Group is a global asset management business that offers a wide range of investing expertise and resources, including research capabilities in many countries throughout the world. In 2018, approximately 20% of DWS Group’s shares were sold in an initial public offering, with Deutsche Bank AG owning the remaining shares.
As part of the contract review process, the Board carefully considered the fees and expenses of each DWS fund overseen by the Board in light of the fund’s performance. In many cases, this led to the negotiation and implementation of expense caps. As part of these negotiations, the Board indicated that it would consider relaxing these caps in future years following sustained improvements in performance, among other considerations.
While shareholders may focus primarily on fund performance and fees, the Fund’s Board considers these and many other factors, including the quality and integrity of DIMA’s personnel and administrative support services provided by DIMA, such as back-office operations, fund valuations, and compliance policies and procedures.
Nature, Quality and Extent of Services. The Board considered the terms of the Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DIMA provides portfolio management services to the Fund and that, pursuant to a separate administrative services agreement, DIMA provides administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel and the resources made available to such personnel. The Board reviewed the Fund’s performance over short-term and long-term periods and compared those returns to various agreed-upon performance measures, including a peer universe compiled using information supplied by iMoneyNet, an independent fund data service. The Board also noted that it has put into place a process of identifying “Funds in Review” (e.g., funds performing poorly relative to a peer universe), and receives additional reporting from DIMA regarding such funds and, where appropriate, DIMA’s plans to address underperformance. The Board believes this process is an effective manner of identifying and addressing underperforming funds. Based on the information provided, the Board noted that, for theone- and three-year periods ended December 31, 2017, the Fund’s gross performance (Service Shares) was in the 2nd quartile of the applicable iMoneyNet universe (the 1st quartile being the best performers and the 4th quartile being the worst performers).
Fees and Expenses. The Board considered the Fund’s investment management fee schedule, operating expenses and total expense ratios, and comparative information provided by Broadridge Financial Solutions, Inc. (“Broadridge”) and the Fee Consultant regarding investment management fee rates paid to other investment advisors by similar funds
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(1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates paid by the Fund, which include a 0.10% fee paid to DIMA under the Fund’s administrative services agreement, were lower than the median (1st quartile) of the applicable Broadridge peer group (based on Broadridge data provided as of December 31, 2017). Based on Broadridge data provided as of December 31, 2017, the Board noted that the Fund’s total operating expenses (excluding12b-1 fees and/or shareholder administration fees, if applicable) were lower than the median of the applicable Broadridge expense universe (less any applicable12b-1 fees) for the following share classes: DWS Government Cash Institutional Shares (2nd quartile) and Government Cash Managed Shares (2nd quartile) and higher than the median of the applicable Broadridge expense universe (less any applicable12b-1 fees) for the following share classes: Service Shares (4th quartile) and DWS Government & Agency Money Fund shares (3rd quartile). The Board noted the expense limitations agreed to by DIMA. The Board also noted the voluntary fee waivers implemented by DIMA prior to December 31, 2017 to ensure the Fund maintained a positive yield. The Board considered the Fund’s management fee rate as compared to fees charged by DIMA to comparable DWS U.S. registered funds (“DWS Funds”) and considered differences between the Fund and the comparable DWS Funds. The information requested by the Board as part of its review of fees and expenses also included information about institutional accounts (including anysub-advised funds and accounts) and funds offered primarily to European investors (“DWS Europe Funds”) managed by DWS Group. The Board noted that DIMA indicated that DWS Group does not manage any institutional accounts or DWS Europe Funds comparable to the Fund.
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DIMA.
Profitability. The Board reviewed detailed information regarding revenues received by DIMA under the Agreement. The Board considered the estimated costs to DIMA, andpre-tax profits realized by DIMA, from advising the DWS Funds, as well as estimates of thepre-tax profits attributable to managing the Fund in particular. The Board also received information regarding the estimated enterprise-wide profitability of DIMA and its affiliates with respect to all fund services in totality and by fund. The Board and the Fee Consultant reviewed DIMA’s methodology in allocating its costs to the management of the Fund. Based on the information provided, the Board concluded that thepre-tax profits realized by DIMA in connection with the management of the Fund were not unreasonable. The Board also reviewed certain publicly available information regarding the profitability of certain similar investment management firms. The Board noted that, while information regarding the
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profitability of such firms is limited (and in some cases is not necessarily prepared on a comparable basis), DIMA and its affiliates’ overall profitability with respect to the DWS Funds (after taking into account distribution and other services provided to the funds by DIMA and its affiliates) was lower than the overall profitability levels of most comparable firms for which such data was available.
Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Fund and whether the Fund benefits from any economies of scale. The Board noted that the Fund’s investment management fee schedule includes fee breakpoints. The Board concluded that the Fund’s fee schedule represents an appropriate sharing between the Fund and DIMA of such economies of scale as may exist in the management of the Fund at current asset levels.
Other Benefits to DIMA and Its Affiliates. The Board also considered the character and amount of other incidental or“fall-out” benefits received by DIMA and its affiliates, including any fees received by DIMA for administrative services provided to the Fund, any fees received by an affiliate of DIMA for transfer agency services provided to the Fund and any fees received by an affiliate of DIMA for distribution services. The Board also considered benefits to DIMA related to brokerage and soft-dollar allocations, including allocating brokerage to pay for research generated by parties other than the executing broker dealers, which pertain primarily to funds investing in equity securities. In addition, the Board considered the incidental public relations benefits to DIMA related to DWS Funds advertising and cross-selling opportunities among DIMA products and services. The Board considered these benefits in reaching its conclusion that the Fund’s management fees were reasonable.
Compliance. The Board considered the significant attention and resources dedicated by DIMA to its compliance processes in recent years. The Board noted in particular (i) the experience, seniority and time commitment of the individuals serving as DIMA’s and the Fund’s chief compliance officers and (ii) the substantial commitment of resources by DIMA and its affiliates to compliance matters, including the retention of compliance personnel.
Based on all of the information considered and the conclusions reached, the Board unanimously determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Trustees and counsel present. It is possible that individual Independent Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.
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The following table presents certain information regarding the Board Members and Officers of the Fund. Each Board Member’s year of birth is set forth in parentheses after his or her name. Unless otherwise noted, (i) each Board Member has engaged in the principal occupation(s) noted in the table for at least the most recent five years, although not necessarily in the same capacity; and (ii) the address of each Independent Board Member is c/o Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA02199-3600. Except as otherwise noted below, the term of office for each Board Member is until the election and qualification of a successor, or until such Board Member sooner dies, resigns, is removed or as otherwise provided in the governing documents of the Fund. Because the Fund does not hold an annual meeting of shareholders, each Board Member will hold office for an indeterminate period. The Board Members may also serve in similar capacities with other funds in the fund complex.
Independent Board Members | ||||||||
Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
Keith R. Fox, CFA (1954)
Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods importer and distributor); The Kennel Shop (retailer); former Chairman, National Association of Small Business Investment Companies; former Directorships: BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) (2011–2012) | 82 | — | |||||
John W. Ballantine (1946)
Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population well-being and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc. and Oak Brook Bank; Prisma Energy International; Public Radio International. Not-for-Profit Director/Trustee: Palm Beach Civic Association; Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago | 82 | Portland General Electric2 (utility company) (2003– present) |
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Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
Henry P. Becton, Jr. (1943)
Board Member since 1990 | Vice Chair and former President, WGBH Educational Foundation. Directorships: Public Radio International; Public Radio Exchange (PRX); The Pew Charitable Trusts (charitable organization); Massachusetts Humane Society; Overseer of the New England Conservatory; former Directorships: Becton Dickinson and Company2 (medical technology company); Belo Corporation2 (media company); The PBS Foundation; Association of Public Television Stations; Boston Museum of Science; American Public Television; Concord Academy; New England Aquarium; Mass. Corporation for Educational Telecommunications; Committee for Economic Development; Public Broadcasting Service; Connecticut College; North Bennett Street School (Boston); American Documentary, Inc. (public media) | 82 | — | |||||
Dawn-Marie Driscoll (1946)
Board Member since 1987 | Emeritus Executive Fellow, Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988). Directorships: Advisory Board, Center for Business Ethics, Bentley University; Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 82 | — | |||||
Richard J. Herring (1946)
Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); Director, The Wharton Financial Institutions Center (since 1994); formerly: Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Formerly Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), and Nonexecutive Director of Barclays Bank DE (2010–2018) | 82 | Director, Aberdeen Japan Fund (since 2007) |
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Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
William McClayton (1944)
Board Member since 2004 | Private equity investor (since October 2009); previously, Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001–2009); Directorship: Board of Managers, YMCA of Metropolitan Chicago; formerly: Senior Partner, Arthur Andersen LLP (accounting) (1966–2001); Trustee, Ravinia Festival | 82 | — | |||||
Rebecca W. Rimel (1951)
Board Member since 1995 | President, Chief Executive Officer and Director, The Pew Charitable Trusts (charitable organization) (1994–present); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012) | 82 | Director, Becton Dickinson and Company2 (medical technology company) (2012– present); Director, BioTelemetry Inc.2(health care) (2009– present) | |||||
William N. Searcy, Jr. (1946)
Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2(telecommunications) (November 1989–September 2003); Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 82 | — | |||||
Jean Gleason Stromberg (1943)
Board Member since 1997 | Retired. Formerly, Consultant (1997–2001); Director, Financial Markets U.S. Government Accountability Office (1996–1997); Partner, Norton Rose Fulbright, L.L.P. (law firm) (1978–1996); former Directorships: The William and Flora Hewlett Foundation (charitable organization) (2000–2015); Service Source, Inc. (nonprofit), Mutual Fund Directors Forum (2002–2004), American Bar Retirement Association (funding vehicle for retirement plans) (1987–1990 and 1994–1996) | 82 | — |
Officers4 | ||
Name, Year of Birth, Position with the Fund and Length of Time Served5 | Business Experience and Directorships During the Past Five Years | |
Hepsen Uzcan6(1974)
President and Chief Executive Officer, 2017–present | Managing Director,3 DWS; Secretary, DWS USA Corporation (since March 2018); Assistant Secretary, DWS Distributors, Inc. (since June 25, 2018); Director and Vice President, DWS Service Company (since June 25, 2018); Assistant Secretary, DWS Investment Management Americas, Inc. (since June 25, 2018); and Director and President, DB Investment Managers, Inc. (since June 25, 2018); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019) |
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Name, Year of Birth, Position with the Fund and Length of Time Served5 | Business Experience and Directorships During the Past Five Years | |
John Millette8(1962)
Vice President and Secretary, 1999–present | Director,3DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); and Director and Vice President, DWS Trust Company (2016–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017) | |
Diane Kenneally8,9(1966)
Chief Financial Officer and Treasurer, since 2018 | Director,3 DWS; formerly: Assistant Treasurer for the DWS funds (2007–2018) | |
Paul Antosca8(1957)
Assistant Treasurer, 2007–present | Director,3DWS | |
Sheila Cadogan8(1966)
Assistant Treasurer, 2017–present | Director,3DWS; Director and Vice President, DWS Trust Company (since 2018) | |
Scott D. Hogan8(1970)
Chief Compliance Officer, 2016–present | Director,3DWS | |
Caroline Pearson8(1962)
Chief Legal Officer, 2010–present | Managing Director,3DWS; formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); and Secretary, Deutsche AM Service Company (2010–2017) | |
Wayne Salit7(1967) Anti-Money Laundering Compliance Officer, 2014–present | Director,3 Deutsche Bank; and AML Officer, DWS Trust Company; formerly: Managing Director, AML Compliance Officer at BNY Mellon (2011–2014); and Director, AML Compliance Officer at Deutsche Bank (2004–2011) | |
Ciara Crawford10 (1984) Assistant Secretary, since February 8, 2019 | Associate, DWS (since 2015); previously, Legal Assistant at Accelerated Tax Solutions. |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Executive title, not a board directorship. |
4 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
5 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
6 | Address: 345 Park Avenue, New York, NY 10154. |
7 | Address: 60 Wall Street, New York, NY 10005. |
8 | Address: One International Place, Boston, MA 02110. |
9 | Appointed Treasurer and Chief Financial Officer effective July 2, 2018. |
10 | Address: 5022 Gate Parkway, Suite 400, Jacksonville, FL 32256. |
The Fund’s Statement of Additional Information (“SAI”) includes additional information about the Board Members. The SAI is available, without charge, upon request. If you would like to request a copy of the SAI, you may do so by calling the followingtoll-free number:(800) 728-3337.
38 | | | DWS Government & Agency Money Fund |
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Notes
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DGAMF-2
(R-027588-8 6/19)
Table of Contents
April 30, 2019
Annual Report
to Shareholders
DWSTax-Exempt Portfolio
(formerly Deutsche Tax-Exempt Portfolio)
DWSTax-Exempt Cash Premier Shares
(formerly Deutsche Tax-Exempt Cash Premier Shares)
Fund #148
Tax-Exempt Cash Managed Shares
Fund #248
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s Web site (dws.com), and you will be notified by mail each time a report is posted and provided with a Web site link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank), or if you are a direct investor, by calling (800) 728-3337 or sending an email request to service@dws.com.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 728-3337 or send an email request to service@dws.com to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with DWS if you invest directly with the Fund.
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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 dws.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.
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.You should not rely on or expect the Advisor to enter into support agreements or take other actions to maintain the Fund’s $1.00 share price. The credit quality of the Fund’s holdings can change rapidly in certain markets, and the default of a single holding could have an adverse impact on the Fund’s share price. The Fund’s share price can also be negatively affected during periods of high redemption pressures and/or illiquid markets. The actions of a few large investors in one class of shares of the Fund may have a significant adverse effect on the share prices of all classes of shares of the Fund. Please read the prospectus for specific details regarding the Fund’s risk profile.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services.
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
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Portfolio Management Review | (Unaudited) |
Market Overview
All performance information below is historical and does not guarantee future results. Investment return and principal fluctuate, so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit dws.com for the Funds’ most recentmonth-end performance. The7-day current yield refers to the income paid by the Funds over a7-day period expressed as an annual percentage rate of each Fund’s shares outstanding. Yields fluctuate and are not guaranteed.
Over the past 12 months ended April 30, 2019, yields across the money market yield curve fluctuated based on the growing U.S. economy and evolving U.S. Federal Reserve (the Fed) statements and actions. In light of continued economic strength and a tight labor market, the Federal Open Market Committee (FOMC) raised short-term rates at its June 2018 meeting. In September, the Fed once again raised rates, with accompanying statements that at the time were viewed as aggressive regarding the prospects for future rate hikes. In December, a number of factors contributed to a considerable increase in financial market volatility and a tightening in overall financial conditions. These factors included statements by the Fed following its December 2018 rate hike. In December, the Fed’s messaging disappointed market watchers because the central bank did not commit to a pause in its rate hikes, despite signs that growth was slowing in some parts of the global economy. Disappointment in the Fed’s statements during the fourth quarter of 2018 coincided with a major correction in the stock markets, an inverted yield curve (often a predictor of economic recession), a widening of credit spreads, apparent difficulties in trade talks with China, and a U.S. government shutdown.
In January, the short-term rate environment underwent a meaningful change: Responding to the significant financial market disruptions that had taken place in late 2018, the Fed pivoted dramatically, taking all of its rate hike forecasts off the table and changing from a hawkish to a neutral (to some observers, even dovish) monetary policy stance. The Fed not only walked backed its projections of fed funds rate increases, but also lowered its U.S. economic growth estimates. Money market participants took the altered short-term rate expectations even further by “pricing in” a Fed rate cut in early 2020. At the end of the12-month period, the
DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares | | | 3 |
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market consensus was that in terms of possible short-term rate changes, the Fed would most likely be on hold for the remainder of 2019.
Positive Contributors to Fund Performance
DWSTax-Exempt Portfolio seeks to provide maximum current income that is exempt from federal income taxes to the extent consistent with stability of capital.
For the DWS Tax Exempt Portfolio, we sought to achieve an attractive yield by implementing a strategic balance of short liquidity instruments, as well as longer-term products. With an increase in market volatility, keeping overweight balances in floating-rate VRDNs (Variable Rate Demand Notes) enabled the Fund to purchase fixed-term commercial paper with maturities of 30 to 90 days, providing what we believe to be attractive yield. (The interest rate of variable rate securities adjusts periodically based on indices such as the Securities Industry and Financial Market Association Index of Variable Rate Demand Notes. Because the interest rates of these instruments adjust as market conditions change, they provide flexibility in an uncertain interest rate environment.)
Negative Contributors to Fund Performance
The types of securities that we invested in tended to have lower yields than issues carrying more risk. We preferred to be cautious during a time of market uncertainty. In the end this may have cost the Fund some yield, but we believe that this represented a prudent approach to preserving principal.
Outlook and Positioning
We are cautious regarding current U.S. economic policy, the global geopolitical situation, and the agenda on trade that the administration is pursuing. However, we believe that the economy can continue to expand, though with a possible slowdown later this year or early in 2020. For now we are positioning the Fund for continued growth. With no Fed rate hikes projected in the coming months, we plan to continue our current portfolio strategy until there is a significant shift in the market environment.
We continue our insistence on what we believe to be the highest credit quality within the Fund. We also plan to maintain what we believe to be
4 | | | DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares |
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our conservative investment strategies and standards under the current market conditions. We continue to apply what we believe to be a careful approach to investing on behalf of the Fund and to seek competitive yield for our shareholders.
Fund Performance(as of April 30, 2019)
Performance is historical and does not guarantee future results. Current performance may be lower or higher than the performance data quoted.
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
7-Day Current Yield | ||||
DWSTax-Exempt Cash Premier Shares | 1.95%* | |||
Equivalent Taxable Yield | 2.99%** | |||
Tax-Exempt Cash Managed Shares | 1.75%* | |||
Equivalent Taxable Yield | 2.69%** |
Yields are historical, will fluctuate and do not guarantee future performance. The7-day current yield refers to the income paid by the Fund over a7-day period expressed as an annual percentage rate of the Fund’s shares outstanding. For the most current yield information, visit our Web site at dws.com.
* | The7-Day Current Yield would have been 1.75% and 1.33% for DWS Tax-Exempt Cash Premier Shares and Tax-Exempt Cash Managed Shares respectively, had certain expenses not been reduced. |
** | The equivalent taxable yield allows you to compare with the performance of taxable money market funds. For the DWSTax-Exempt Portfolio, the equivalent taxable yield is based upon the marginal income tax rate of 40.8%. Income may be subject to local taxes and, for some investors, the alternative minimum tax. |
Portfolio Management Team
A group of investment professionals is responsible for theday-to-day management of the Fund. These investment professionals have a broad range of experience managing money market funds.
The views expressed reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The management team’s views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Past performance is no guarantee of future results. Current and future portfolio holdings are subject to risk.
DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares | | | 5 |
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Terms to Know
Theyield curve is a graphical representation of how yields on bonds of different maturities compare. Normally, yield curves slant up, as bonds with longer maturities typically offer higher yields than short-term bonds.
Floating-rate securities are debt instruments with floating-rate coupons that generally reset every 30 to 90 days. While floating-rate securities are senior to equity and fixed-income securities, there is no guaranteed return of principal in case of default. Floating-rate issues often have less interest-rate risk than other fixed-income investments. Floating-rate securities are most often secured assets, generally senior to a company’s secured debt, and can be transferred to debt holders, resulting in potential downside risk.
6 | | | DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares |
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Portfolio Summary | (Unaudited) |
DWSTax-Exempt Portfolio
Asset Allocation (As a % of Investment Portfolio) | 4/30/19 | 4/30/18 | ||||||
Municipal Investments | ||||||||
Municipal Variable Rate Demand Notes | 62% | 49% | ||||||
Tax-Exempt Commercial Paper | 17% | 17% | ||||||
Municipal Bonds and Notes | 11% | 20% | ||||||
MunicipalFloating-Rate Notes | 5% | 5% | ||||||
Preferred Shares ofClosed-End Investment Companies | 5% | 9% | ||||||
100% | 100% | |||||||
Weighted Average Maturity | 4/30/19 | 4/30/18 | ||||||
Cash Account Trust — DWSTax-Exempt Portfolio | 13 days | 26 days | ||||||
NationalTax-Free Retail Money Fund Average* | 19 days | 19 days |
* | The Fund is compared to its respective iMoneyNet Category: NationalTax-Free Retail Money Fund Average — Category consists of all nationaltax-free and municipal retail funds. Portfolio holdings oftax-free funds include Rated and Unrated Demand Notes, Rated and Unrated General Market Notes; Commercial Paper; Put Bonds; AMT Paper and OtherTax-Free Holdings. |
Weighted average maturity, also known as effective maturity, is the weighted average of the maturity date of bonds held by the Fund taking into consideration any available maturity shortening features.
Portfolio holdings and characteristics are subject to change.
For more complete details about the Fund’s holdings, see pages 8–18. A quarterly Fact Sheet is available on dws.com or upon request.
DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares | | | 7 |
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Investment Portfolio | as of April 30, 2019 |
DWSTax-Exempt Portfolio
Principal Amount ($) | Value ($) | |||||||
Municipal Investments 94.8% | ||||||||
Alabama 0.5% |
| |||||||
Tuscaloosa County, AL, Industrial Development Authority, Gulf Opportunity Zone, Hunt Refining Project, Series I, 144A, 2.33%*, 5/7/2019, LOC: Bank of Nova Scotia | 1,600,000 | 1,600,000 | ||||||
Alaska 0.5% | ||||||||
Alaska, State Industrial Development & Export Authority Revenue, Series B, 2.3%*, 5/1/2019, LOC: BankTokyo-Mitsubishi UFJ | 1,500,000 | 1,500,000 | ||||||
Arizona 1.5% | ||||||||
Arizona, State Health Facilities Authority Revenue, Dignity Health, Series A, 2.15%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 215,000 | 215,000 | ||||||
Arizona, State Health Facilities Authority, Banner Health, Series G, 2.42%*, 5/7/2019, LOC: Wells Fargo Bank NA | 285,000 | 285,000 | ||||||
Maricopa County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Sani Angelin Apartments Project, Series A, AMT, 2.5%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 240,000 | 240,000 | ||||||
Maricopa County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Sanitary Clemente Apartments Project, Series A, AMT, 2.45%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 810,000 | 810,000 | ||||||
Maricopa County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Sanitary Fernando Apartments Project, Series A, AMT, 2.45%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 445,000 | 445,000 | ||||||
Pima County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Eastside PL Apartments, 2.4%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 1,350,000 | 1,350,000 | ||||||
Pima County, AZ, Industrial Development Authority, Series A, 2.4%*, 5/7/2019, LOC: Federal Home Loan Bank | 950,000 | 950,000 | ||||||
|
| |||||||
4,295,000 | ||||||||
Arkansas 3.1% | ||||||||
Little Rock, AR, Metrocentere Improvement District No.1, Little Rock Newspapers, Inc., 2.3%*, 5/1/2019, LOC: JPMorgan Chase Bank NA | 2,500,000 | 2,500,000 | ||||||
Lowell, AR, Industrial Development Revenue, Little Rock Newspapers Project, AMT, 2.53%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 6,500,000 | 6,500,000 | ||||||
|
| |||||||
9,000,000 |
The accompanying notes are an integral part of the financial statements.
8 | | | DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares |
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Principal Amount ($) | Value ($) | |||||||
California 3.3% | ||||||||
California, Statewide Community Development Authority,Series B-5, 1.77%, 8/7/2019 | 6,250,000 | 6,250,000 | ||||||
California, Wells Fargo Stage Trust Various States, Series 94C, 144A, AMT, MUNIPSA + 0.340%, 2.64%**, Mandatory Put 7/24/2019 @ 100, 5/1/2030, GTY: Wells Fargo Bank NA, LIQ: Wells Fargo Bank NA | 2,500,000 | 2,500,000 | ||||||
Los Angeles, CA, Municipal Improvement Corp., SeriesA-1, TECP, 1.66%, 5/30/2019 | 1,000,000 | 1,000,000 | ||||||
|
| |||||||
9,750,000 | ||||||||
Colorado 4.5% | ||||||||
Colorado, State Education Loan Program, Series A, 5.0%, 6/27/2019 | 12,500,000 | 12,566,113 | ||||||
Colorado, State Housing & Finance Authority, Series I - AA2, 2.45%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 500,000 | 500,000 | ||||||
|
| |||||||
13,066,113 | ||||||||
Connecticut 0.4% | ||||||||
Connecticut, Tender Option Bond Trust, Series2018-XG0204, | 1,135,000 | 1,135,000 | ||||||
District of Columbia 0.3% | ||||||||
District of Columbia, Georgetown University Revenue,Series C-1, 2.32%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 420,000 | 420,000 | ||||||
District of Columbia, Metropolitan Airport Authority Systems Revenue, SeriesC-1, AMT, 2.35%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 450,000 | 450,000 | ||||||
|
| |||||||
870,000 | ||||||||
Florida 10.3% | ||||||||
Gainesville, FL, General Obligation Notes, Series C, TECP, 1.7%, 5/6/2019 | 2,000,000 | 2,000,000 | ||||||
Gainesville, FL, Industrial Development Revenue, Gainesville Hillel, Inc. Project, 2.15%*, 5/7/2019, LOC: Northern Trust Company | 4,150,000 | 4,150,000 | ||||||
Gainesville, FL, General Obligation Notes: | ||||||||
Series C, TECP, 1.69%, 5/2/2019 | 11,000,000 | 11,000,000 | ||||||
Series A, TECP, 1.83%, 6/3/2019 | 5,500,000 | 5,500,000 | ||||||
Miami-dade County, FL, Seaport Revenue, Series A, 2.3%*, 5/7/2019, LOC: PNC Bank NA | 925,000 | 925,000 | ||||||
Palm Beach County, FL, Henry Morrison Flagler Project Revenue, 2.4%*, 5/7/2019, LOC: Northern Trust Company | 1,300,000 | 1,300,000 | ||||||
Sarasota County, FL, State Revenue Planned Parenthood, Inc. Project, 2.4%*, 5/7/2019, LOC: BMO Harris Bank NA | 5,230,000 | 5,230,000 | ||||||
|
| |||||||
30,105,000 |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares | | | 9 |
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Principal Amount ($) | Value ($) | |||||||
Georgia 7.2% | ||||||||
Atlanta City, GA, Second Lien Airport Passanger Facility Charge & Third Lien Airport General Revenue, Series 2016H-3, TECP, 2.05%, 5/31/2019 | 200,000 | 200,000 | ||||||
Atlanta City, GA, Airport General Revenue, Series 2016H-1, TECP, 2.05%, 5/31/2019 | 230,000 | 230,000 | ||||||
Atlanta City, GA, Second Lien Airport Passanger Facility Charge & Third Lien Airport General Revenue, SeriesH-3: | ||||||||
TECP, 1.83%, 5/31/2019 | 137,000 | 137,000 | ||||||
TECP, 1.9%, 5/31/2019 | 234,000 | 234,000 | ||||||
City of Atlanta, GA, Airport General Revenue: | ||||||||
SeriesF-3, TECP, 1.95%, 7/2/2019 | 200,000 | 200,000 | ||||||
Series-F-1, TECP, 1.95%, 7/2/2019 | 200,000 | 200,000 | ||||||
Georgia, General Obligation Notes, Series85-A, TECP, 1.78%, 6/5/2019 | 12,500,000 | 12,500,000 | ||||||
Georgia, Tender Option Bond Trust Receipts,Series 2018-XF0709, 144A, 2.4%*, 5/7/2019, LIQ: JPMorgan Chase Bank NA | 6,800,000 | 6,800,000 | ||||||
Monroe County, GA, Development Authority Pollution Control Revenue, Oglethorpe Power Corp., Series A, 2.34%*, 5/7/2019, LOC: Bank of Montreal | 450,000 | 450,000 | ||||||
|
| |||||||
20,951,000 | ||||||||
Idaho 1.7% | ||||||||
Idaho, State Health Facilities Authority, Hospital Revenue, Trinity Health Credit Group, Series ID, 1.7%**, 12/1/2048 | 5,000,000 | 5,000,000 | ||||||
Illinois 10.3% | ||||||||
Channahon, IL, Morris Hospital Revenue, 2.31%*, 5/7/2019, LOC: U.S. Bank NA | 4,005,000 | 4,005,000 | ||||||
Illinois, Educational Facilities Authority, Chicago Zoological Society, Series B, 2.4%*, 5/7/2019, LOC: Northern Trust Company | 3,955,000 | 3,955,000 | ||||||
Illinois, Southwestern Development Authority Solid Waste Disposal Revenue, Waste Management, Inc., Project, AMT, 2.35%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 400,000 | 400,000 | ||||||
Illinois, State Development Finance Authority, Chicago Horticultural, 2.3%*, 5/7/2019, LOC: BMO Harris Bank NA | 2,600,000 | 2,600,000 | ||||||
Illinois, State Development Finance Authority, Ignatius College Project, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 2,000,000 | 2,000,000 | ||||||
Illinois, State Development Finance Authority, Industrial Development Revenue, Series A, AMT, 2.37%*, 5/7/2019, LOC: BMO Harris Bank NA | 565,000 | 565,000 | ||||||
Illinois, State Development Finance Authority, Jewish Council Youth Services, 2.31%*, 5/7/2019, LOC: BMO Harris Bank NA | 1,400,000 | 1,400,000 |
The accompanying notes are an integral part of the financial statements.
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Principal Amount ($) | Value ($) | |||||||
Illinois, State Development Finance Authority, St. Ignatius College Preparatory, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 3,850,000 | 3,850,000 | ||||||
Illinois, State Development Finance Authority, YMCA Metropolitan Chicago Project, 2.15%*, 5/7/2019, LOC: BMO Harris Bank NA | 1,000,000 | 1,000,000 | ||||||
Illinois, State Educational Facilities Authority Revenue, The Adler Planetarium, 2.26%*, 5/7/2019, LOC: PNC Bank NA | 1,100,000 | 1,100,000 | ||||||
Illinois, State Educational Facilities Authority, National Louis University, Series B, 2.3%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 190,000 | 190,000 | ||||||
Illinois, State Finance Authority Revenue, North Park University Project, 2.15%*, 5/7/2019, LOC: U.S. Bank NA | 1,900,000 | 1,900,000 | ||||||
Illinois, State Finance Authority Revenue, Uhlich Children’s Advantage Network, 2.31%*, 5/7/2019, LOC: U.S. Bank NA | 1,885,000 | 1,885,000 | ||||||
Illinois, State Housing Development Authority, Multi-Family Housing Revenue, 2.44%*, 5/7/2019, LIQ: Freddie Mac, LOC: Freddie Mac | 4,325,000 | 4,325,000 | ||||||
University of Illinois: | ||||||||
2.15%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 330,000 | 330,000 | ||||||
2.42%*, 5/7/2019, LOC: Wells Fargo Bank NA | 425,000 | 425,000 | ||||||
|
| |||||||
29,930,000 | ||||||||
Indiana 2.6% | ||||||||
Elkhart County, IN, Multy-Family Revenue, Ashton Pines Apartments, Series A, 2.35%*, 5/7/2019, LOC: Federal Home Loan Bank | 500,000 | 500,000 | ||||||
Indiana, State Finance Authority, Health Systems Revenue, Sisters of St. Francis Health, Series F, 2.32%*, 5/7/2019, LOC: Bank of NY Mellon | 2,900,000 | 2,900,000 | ||||||
Rockport, IN, Pollution Control Revenue, AEP Generating Co., Series B, 2.42%*, 5/7/2019, LOC: BankTokyo-Mitsubishi UFJ | 4,175,000 | 4,175,000 | ||||||
|
| |||||||
7,575,000 | ||||||||
Iowa 1.1% | ||||||||
Iowa, State Finance Authority Midwestern Disaster Area Revenue, 2.35%*, 5/7/2019 | 405,000 | 405,000 | ||||||
Iowa, State Finance Authority, Economic Development Revenue, Series A, 2.34%*, 5/7/2019 | 300,000 | 300,000 | ||||||
Iowa, State Finance Authority, Single Family Mortgage Revenue, Mortgage Backed Securities Program: | ||||||||
Series D, 2.34%*, 5/7/2019, SPA: Federal Home Loan Bank | 1,550,000 | 1,550,000 | ||||||
Series E, 2.34%*, 5/7/2019, SPA: Federal Home Loan Bank | 855,000 | 855,000 | ||||||
|
| |||||||
3,110,000 |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares | | | 11 |
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Principal Amount ($) | Value ($) | |||||||
Kansas 0.3% | ||||||||
Olathe, KS, Industrial Revenue, Multi Modal Diamant Boart, Series A, AMT, 2.46%*, 5/7/2019, LOC: Svenska Handelsbanken | 1,000,000 | 1,000,000 | ||||||
Kentucky 0.7% | ||||||||
Boone County, KY, Pollution Control Revenue, Duke Energy Kentucky, Inc., 2.37%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 300,000 | 300,000 | ||||||
Louisville & Jefferson County, KY, Regional Airport Authority, UPS Worldwide Forwarding, Series C, AMT, 2.34%*, 5/1/2019 | 1,800,000 | 1,800,000 | ||||||
|
| |||||||
2,100,000 | ||||||||
Louisiana 0.2% | ||||||||
Louisiana, State Housing Finance Agency, Centerbury House Apartments, 2.31%*, 5/7/2019, LOC: Fannie Mae | 550,000 | 550,000 | ||||||
Maryland 0.2% | ||||||||
Maryland, State Health & Higher Educational Facilities Authority Revenue, Gaudenzia Foundation, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 500,000 | 500,000 | ||||||
Massachusetts 2.1% | ||||||||
Massachusetts, Tender Option Bond Trust Receipts, Series 2015-XF2203, 144A, 2.32%*, 5/7/2019, LIQ: Citibank NA | 2,300,000 | 2,300,000 | ||||||
Massachusetts, University of Massachusetts, Building Authority Revenue, Series 2, MUNIPSA + 0.300%, 2.6%**, 11/1/2034 | 3,900,000 | 3,900,000 | ||||||
|
| |||||||
6,200,000 | ||||||||
Michigan 1.8% | ||||||||
Michigan, Kent Hospital Finance Authority Revenue, Spectrum Health System, Series C, 2.4%*, 5/7/2019, LOC: Bank of NY Mellon | 290,000 | 290,000 | ||||||
University of Michigan, General Obligation Notes, SeriesK-1, TECP, 1.83%, 6/3/2019 | 5,000,000 | 5,000,000 | ||||||
|
| |||||||
5,290,000 | ||||||||
Mississippi 3.3% | ||||||||
Mississippi, State Business Finance Commission, Gulf Opportunity Zone, Chevron U.S.A., Inc.: | ||||||||
Series F, 2.3%*, 5/7/2019, GTY: Chevron Corp. | 50,000 | 50,000 | ||||||
Series A, 2.44%*, 5/7/2019, GTY: Chevron Corp. | 9,505,000 | 9,505,000 | ||||||
Series B, 2.44%*, 5/7/2019, GTY: Chevron Corp. | 200,000 | 200,000 | ||||||
|
| |||||||
9,755,000 |
The accompanying notes are an integral part of the financial statements.
12 | | | DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares |
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Principal Amount ($) | Value ($) | |||||||
Missouri 1.1% | ||||||||
Missouri, Tender Option Bond Trust Receipts,Series 2015-XF2198, 144A, 2.33%*, 5/7/2019, LIQ: Citibank NA | 2,660,000 | 2,660,000 | ||||||
St. Louis County, MO, Industrial Development Authority, Educational Whitefield School, Inc., Series B, 2.4%*, 5/7/2019, LOC: U.S. Bank NA | 450,000 | 450,000 | ||||||
|
| |||||||
3,110,000 | ||||||||
Nevada 2.7% | ||||||||
Clark County, NV, Airport Systems Revenue, SeriesD-1, 2.4%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 6,755,000 | 6,755,000 | ||||||
Nevada, State Housing Division, Sonoma Palms LP, AMT, 2.32%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 1,100,000 | 1,100,000 | ||||||
|
| |||||||
7,855,000 | ||||||||
New York 5.1% | ||||||||
New York, State Energy Research & Development Authority Facilities Revenue, Consolidated Edison Co., SeriesC-2, AMT, 2.45%*, 5/7/2019, LOC: Mizuho Bank Ltd. | 690,000 | 690,000 | ||||||
New York, State Thruway Authority Revenue,Series 2016-XF2345, 144A, 2.33%*, 5/7/2019, LIQ: Credit Suisse | 1,865,000 | 1,865,000 | ||||||
New York City, NY, Industrial Development Agency, Civic Facility Revenue, Jamaica First Parking LLC Project, 2.32%*, 5/7/2019, LOC: TD Bank NA | 1,185,000 | 1,185,000 | ||||||
New York City, NY, Municipal Finance Authority, Water & Sewer Systems Revenue, SeriesF-2, 2.13%*, 5/7/2019, SPA: JPMorgan Chase Bank NA | 3,470,000 | 3,470,000 | ||||||
New York City, NY, Municipal Water Finance Authority, Water & Sewer Systems Revenue, Second Generation Resolution, SeriesBB-1, 2.38%*, 5/7/2019, SPA: IND & Commercial Bank of China BA | 5,750,000 | 5,750,000 | ||||||
New York City, NY, Transitional Finance Authority Revenue, Future Tax Secured, SeriesA-2A, 2.3%*, 5/2/2019, LOC: Bank Tokyo-Mitsubishi UFJ | 825,000 | 825,000 | ||||||
New York, NY, General Obligation, SeriesJ-6, 2.32%*, 5/1/2019, LOC: Landesbank Hessen-Thuringen | 830,000 | 830,000 | ||||||
New York, NY, State General Obligation, SeriesA-3, 2.31%*, 5/1/2019, SPA: Landesbank Hessen-Thuringen | 175,000 | 175,000 | ||||||
Westchester County, NY, Industrial Development Agency, Civic Facility Revenue, Jewish Project, 2.3%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 100,000 | 100,000 | ||||||
|
| |||||||
14,890,000 |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares | | | 13 |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
North Carolina 0.9% | ||||||||
North Carolina, State Capital Facilities Finance Agency Student Revenue, Housing NCA&T University Foundation Project, Series B, 2.37%*, 5/7/2019, INS: AGC, LOC: PNC Bank NA | 2,575,000 | 2,575,000 | ||||||
Ohio 6.6% | ||||||||
Cuyahoga County, OH, Health Care Facilities Revenue, AM McGregor Home Project, 2.38%*, 5/7/2019, LOC: Northern Trust Company | 12,400,000 | 12,400,000 | ||||||
Franklin County, OH, Trinity Health Credit Group, 1.7%**, 12/1/2046 | 5,000,000 | 5,000,000 | ||||||
Hamilton County, OH, Economic Development Revenue, St Xavier High School Project, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 1,695,000 | 1,695,000 | ||||||
|
| |||||||
19,095,000 | ||||||||
Oklahoma 1.3% | ||||||||
Oklahoma, Tender Option Bond Trust Floaters,Series 2018-XM0708, 144A, AMT, 2.48%*, 5/7/2019, LIQ: JPMorgan Chase Bank NA | 3,750,000 | 3,750,000 | ||||||
Pennsylvania 4.4% | ||||||||
Butler County, PA, General Authority Revenue, School District Project, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 1,500,000 | 1,500,000 | ||||||
Lancaster, PA, Industrial Development Authority, Willow Valley Retirement, Series C, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 2,500,000 | 2,500,000 | ||||||
Pennsylvania, State Economic Development Financing Authority Revenue, Hawley Silk Mill LLC, Recovery Zone Facility, Series A1, 2.39%*, 5/7/2019, LOC: PNC Bank NA | 300,000 | 300,000 | ||||||
Pennsylvania, Tender Option Bond Trust,Series 2019-ZF2779, 2.33%*, 5/7/2019, LIQ: Barclays Bank PLC | 1,500,000 | 1,500,000 | ||||||
Philadelphia, PA, Airport Revenue, SeriesB-2, TECP, 1.72%, 5/31/2019 | 7,000,000 | 7,000,000 | ||||||
|
| |||||||
12,800,000 | ||||||||
Rhode Island 0.2% | ||||||||
Rhode Island, State Health & Educational Building Corp., Higher Education Facility Revenue, Roger Williams University, Series A, 2.18%*, 5/7/2019, LOC: U.S. Bank NA | 520,000 | 520,000 | ||||||
South Carolina 0.1% | ||||||||
North Charleston, SC, Certificates of Participation, 2.26%*, 5/7/2019, LOC: Bank of America NA | 355,000 | 355,000 |
The accompanying notes are an integral part of the financial statements.
14 | | | DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares |
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Principal Amount ($) | Value ($) | |||||||
South Dakota 0.7% | ||||||||
South Dakota, State Health & Educational Facilities Authority, Sioux Valley Hospital & Health: | ||||||||
Series B, 2.15%*, 5/7/2019, LOC: U.S. Bank NA | 425,000 | 425,000 | ||||||
Series C, 2.15%*, 5/7/2019, LOC: U.S. Bank NA | 1,485,000 | 1,485,000 | ||||||
|
| |||||||
1,910,000 | ||||||||
Tennessee 0.3% | ||||||||
Loudon, TN, Industrial Development Board, Pollution Control Revenue, 2.4%*, 5/7/2019, LOC: Citibank NA | 300,000 | 300,000 | ||||||
Shelby County, TN, Health Educational & Housing Facilities Board, Multi-Family Housing Revenue, 2.4%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 600,000 | 600,000 | ||||||
|
| |||||||
900,000 | ||||||||
Texas 7.7% | ||||||||
Austin, TX, Water & Wastewater Systems Revenue, 2.32%*, 5/7/2019, LOC: Barclays Bank PLC | 2,225,000 | 2,225,000 | ||||||
Harris County, TX, Houston Port Authority: | ||||||||
1.66%, 5/16/2019 | 3,600,000 | 3,600,000 | ||||||
1.74%, 6/6/2019 | 205,000 | 205,000 | ||||||
1.8%, 6/6/2019 | 5,500,000 | 5,500,000 | ||||||
Houston, TX, Utility Systems Revenue, First Lien, SeriesB-5, 2.32%*, 5/7/2019, LOC: Wells Fargo Bank NA | 590,000 | 590,000 | ||||||
Houston, TX, General Obligation Notes, SeriesE-1, TECP, 1.71%, 6/25/2019 | 2,000,000 | 2,000,000 | ||||||
Tarrant County, TX, Cultural Educational Facilities Finance Corp. Revenue, Christus Health Obligated Group,Series C-2, 2.4%*, 5/7/2019, LOC: Bank of NY Mellon | 850,000 | 850,000 | ||||||
Tarrant County, TX, Housing Finance Corp., Multifamily Housing Gateway Apartments, 2.4%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 375,000 | 375,000 | ||||||
Texas, State Variable Veternas: | ||||||||
Series B, 2.15%*, 5/7/2019, SPA: Federal Home Loan Bank | 490,000 | 490,000 | ||||||
Series C, 2.44%*, 5/7/2019, SPA: Landesbank Hessen-Thuringen | 445,000 | 445,000 | ||||||
Texas, Tender Option Bond Trust Receipts,Series 2015-XF2201, 144A, 2.33%*, 5/7/2019, LIQ: Citibank NA | 3,100,000 | 3,100,000 | ||||||
Texas State, Tax & Revenue Anticipation Notes, 4.0%, 8/29/2019 | 3,000,000 | 3,019,647 | ||||||
|
| |||||||
22,399,647 |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares | | | 15 |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Vermont 0.1% | ||||||||
Vermont, State Educational & Health Buildings Financing Agency Revenue, Hospital Fletcher Allen, Series A, 2.39%*, 5/7/2019, LOC: TD Bank North NA | 400,000 | 400,000 | ||||||
Virginia 0.4% | ||||||||
Loudoun County, VA, Industrial Development Authority Revenue, Jack Kent Cooke Foundation Project, 2.3%*, 5/7/2019, LOC: Northern Trust Company | 650,000 | 650,000 | ||||||
Salem, VA, Industrial Development Authority, Multi-Family Housing Revenue, Oak Park Apartments Project, 2.3%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 535,000 | 535,000 | ||||||
|
| |||||||
1,185,000 | ||||||||
Washington 0.8% | ||||||||
King County, WA, Sewer Revenue, Junior Lien, Series A, 2.4%*, 5/7/2019, LOC: Landesbank Hessen-Thuringen | 530,000 | 530,000 | ||||||
Olympia, WA, Economic Development Corp., Spring Air Northwest Project, AMT, 2.38%*, 5/7/2019, LOC: U.S. Bank NA | 960,000 | 960,000 | ||||||
Washington, State Housing Finance Commission, Panorma City Project, 2.4%*, 5/7/2019, LOC: Wells Fargo Bank NA | 490,000 | 490,000 | ||||||
Washington, State Housing Finance Commission, Vintage of Central Airports Project, 2.42%*, 5/7/2019, LIQ: Freddie Mac, LOC: Freddie Mac | 325,000 | 325,000 | ||||||
|
| |||||||
2,305,000 | ||||||||
Wisconsin 3.9% | ||||||||
Wisconsin, Whitewater Community Development Authority, Housing Preservation, 2.31%*, 5/7/2019, LOC: BMO Harris Bank NA | 7,455,000 | 7,455,000 | ||||||
Wisconsin, State General Obligation, Series05-A, TECP, 1.77%, 6/6/2019 | 1,800,000 | 1,800,000 | ||||||
Wisconsin, State Health & Education Facilities Authority, Ascension Health Alliance Senor Group, SeriesB-2, 4.0%*, 11/15/2043 | 1,545,000 | 1,547,870 | ||||||
Wisconsin, State Health & Educational Facilities Authority Revenue, Mequon Jewish Project, 2.4%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 475,000 | 475,000 | ||||||
|
| |||||||
11,277,870 | ||||||||
Other 2.6% | ||||||||
Federal Home Loan Mortgage Corp., Multi-Family Variable Rate Certificates: | ||||||||
“A”, Series MO27, 2.32%*, 5/7/2019, LIQ: Freddie Mac | 2,815,000 | 2,815,000 | ||||||
“A”, Series M031, 2.33%*, 5/7/2019, LIQ: Freddie Mac | 2,960,000 | 2,960,000 | ||||||
Series M033, 2.33%*, 5/7/2019, LIQ: Freddie Mac | 815,000 | 815,000 |
The accompanying notes are an integral part of the financial statements.
16 | | | DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares |
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Principal Amount ($) | Value ($) | |||||||
“A”, Series M015, AMT, 2.35%*, 5/7/2019, LIQ: Freddie Mac | 1,065,000 | 1,065,000 | ||||||
|
| |||||||
7,655,000 | ||||||||
Total Municipal Investments(Cost $276,264,630) | 276,264,630 | |||||||
Preferred Shares ofClosed-End Investment Companies 4.8% |
| |||||||
California | ||||||||
California, Nuveen Dividend Advantage Municipal Fund, Series1-1362, 144A, AMT, 2.43%*, 5/7/2019, LIQ: Societe Generale | 9,000,000 | 9,000,000 | ||||||
California, Nuveen Dividend Advantage Municipal Fund, Series 6, 144A, AMT, 2.43%*, 5/7/2019, LIQ: Citibank NA | 1,500,000 | 1,500,000 | ||||||
California, Nuveen Quality Municipal Income Fund, Series 7, 144A, AMT, 2.44%*, 5/7/2019, LIQ: Royal Bank of Canada | 3,500,000 | 3,500,000 | ||||||
Total Preferred Shares ofClosed-End Investment Companies(Cost $14,000,000) |
| 14,000,000 | ||||||
% of Net Assets | Value ($) | |||||||
Total Investment Portfolio(Cost $290,264,630) | 99.6 | 290,264,630 | ||||||
Other Assets and Liabilities, Net | 0.4 | 1,284,563 | ||||||
| ||||||||
Net Assets | 100.0 | 291,549,193 |
* | Variable rate demand notes and variable rate demand preferred shares are securities whose interest rates are reset periodically (usually daily mode or weekly mode) by remarketing agents based on current market levels, and are not directly set as a fixed spread to a reference rate. These securities may be redeemed at par by the holder at any time, and are shown at their current rates as of April 30, 2019. Date shown reflects the earlier of demand date or stated maturity date. |
** | Floating rate security. These securities are shown at their current rate as of April 30, 2019. |
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.
AGC: Assured Guaranty Corp.
AMT: Subject to alternative minimum tax.
GTY: Guaranty Agreement
LIQ: Liquidity Facility
LOC: Letter of Credit
MUNIPSA: SIFMA Municipal Swap Index Yield
SPA: Standby Bond Purchase Agreement
TECP: Tax Exempt Commercial Paper
The accompanying notes are an integral part of the financial statements.
DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares | | | 17 |
Table of Contents
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Securities held by the Fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Municipal Investments (a) | $ | — | $ | 276,264,630 | $ | — | $ | 276,264,630 | ||||||||
Preferred Shares ofClosed-End Investment Companies | — | 14,000,000 | — | 14,000,000 | ||||||||||||
Total | $ | — | $ | 290,264,630 | $ | — | $ | 290,264,630 |
(a) | See Investment Portfolio for additional detailed categorizations. |
The accompanying notes are an integral part of the financial statements.
18 | | | DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares |
Table of Contents
Statement of Assets and Liabilities
as of April 30, 2019 | ||||
Assets | | DWS Tax-Exempt Portfolio | ||
Investments in securities, valued at amortized cost | $ | 290,264,630 | ||
Cash | 17,977 | |||
Receivable for investments sold | 200,000 | |||
Receivable for Fund shares sold | 186,784 | |||
Interest receivable | 1,254,804 | |||
Other assets | 58,489 | |||
Total assets | 291,982,684 | |||
Liabilities | ||||
Payable for Fund shares redeemed | 158,192 | |||
Distributions payable | 59,128 | |||
Accrued Trustees’ fees | 4,011 | |||
Other accrued expenses and payables | 212,160 | |||
Total liabilities | 433,491 | |||
Net assets, at value | $ | 291,549,193 | ||
Net Assets Consist of | ||||
Distributable earnings (loss) | (50,568 | ) | ||
Paid-in capital | 291,599,761 | |||
Net assets, at value | $ | 291,549,193 |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares | | | 19 |
Table of Contents
Statement of Assets and Liabilitiesas of April 30, 2019 (continued) |
Net Asset Value | | DWS Tax-Exempt Portfolio | | |
DWSTax-Exempt Cash Premier Shares | ||||
Net Asset Value, offering and redemption price per share ($49,478,536 ÷ 49,454,148 outstanding shares of beneficial interest, | $ | 1.00 | ||
DWSTax-Exempt Money Fund | ||||
Net Asset Value, offering and redemption price per share ($124,352,933 ÷ 124,291,658 outstanding shares of beneficial interest, | $ | 1.00 | ||
DWSTax-Free Money Fund Class S | ||||
Net Asset Value, offering and redemption price per share ($51,658,888 ÷ 51,633,423 outstanding shares of beneficial interest, | $ | 1.00 | ||
Service Shares | ||||
Net Asset Value, offering and redemption price per share ($13,841,671 ÷ 13,834,843 outstanding shares of beneficial interest, | $ | 1.00 | ||
Tax-Exempt Cash Managed Shares | ||||
Net Asset Value, offering and redemption price per share ($45,759,204 ÷ 45,736,619 outstanding shares of beneficial interest, | $ | 1.00 | ||
Tax-Free Investment Class | ||||
Net Asset Value, offering and redemption price per share ($6,457,961 ÷ 6,454,777 outstanding shares of beneficial interest, | $ | 1.00 |
The accompanying notes are an integral part of the financial statements.
20 | | | DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares |
Table of Contents
for the year ended April 30, 2019 |
| |||
Investment Income | | DWS Tax-Exempt Portfolio | | |
Income: | ||||
Interest | $ | 4,696,916 | ||
Expenses: | ||||
Management fee | 231,341 | |||
Administration fee | 303,403 | |||
Services to shareholders | 218,706 | |||
Distribution and service fees | 260,297 | |||
Custodian fee | 11,040 | |||
Professional fees | 119,852 | |||
Reports to shareholders | 114,292 | |||
Registration fees | 123,397 | |||
Trustees’ fees and expenses | 14,414 | |||
Other | 68,666 | |||
Total expenses before expense reductions | 1,465,408 | |||
Expense reductions | (447,709 | ) | ||
Total expenses after expense reductions | 1,017,699 | |||
Net investment income | 3,679,217 | |||
Net realized gain (loss) from investments | 16,792 | |||
Net increase (decrease) in net assets resulting from operations | $ | 3,696,009 |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares | | | 21 |
Table of Contents
Statements of Changes in Net Assets
DWSTax-Exempt Portfolio | ||||||||
Years Ended April 30, | ||||||||
Increase (Decrease) in Net Assets | 2019 | 2018 | ||||||
Operations: | ||||||||
Net investment income | $ | 3,679,217 | $ | 2,423,950 | ||||
Net realized gain (loss) | 16,792 | 2,158 | ||||||
Net increase in net assets resulting from operations | 3,696,009 | 2,426,108 | ||||||
Distributions to shareholders: | ||||||||
DWSTax-Exempt Cash Premier Shares | (554,487 | ) | (430,286 | ) | ||||
DWSTax-Exempt Money Fund | (1,689,303 | ) | (1,163,840 | ) | ||||
DWSTax-Free Money Fund Class S | (640,705 | ) | (413,013 | ) | ||||
Service Shares | (115,693 | ) | (36,384 | ) | ||||
Tax-Exempt Cash Managed Shares | (607,973 | ) | (364,721 | ) | ||||
Tax-Free Investment Class | (58,355 | ) | (28,399 | ) | ||||
Total distributions | (3,666,516 | ) | (2,436,643 | )* | ||||
Fund share transactions: | ||||||||
Proceeds from shares sold | 459,762,725 | 550,268,409 | ||||||
Reinvestment of distributions | 2,971,761 | 1,998,663 | ||||||
Payments for shares redeemed | (485,955,370 | ) | (576,644,724 | ) | ||||
Net increase (decrease) in net assets from Fund share transactions | (23,220,884 | ) | (24,377,652 | ) | ||||
Increase (decrease) in net assets | (23,191,391 | ) | (24,388,187 | ) | ||||
Net assets at beginning of period | 314,740,584 | 339,128,771 | ||||||
Net assets at end of period | $ | 291,549,193 | $ | 314,740,584 | ** |
* | Includes distributions from net investment income. |
** | Includes distributions in excess of net investment income of $47,775 |
The accompanying notes are an integral part of the financial statements.
22 | | | DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares |
Table of Contents
DWSTax-Exempt Portfolio
DWSTax-Exempt Cash Premier Shares
Years Ended April��30, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Selected Per Share Data |
| |||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Income (loss) from investment operations: |
| |||||||||||||||||||
Net investment income | .013 | .009 | .005 | .000 | * | .000 | * | |||||||||||||
Net realized gain (loss) | .000 | * | .000 | * | (.000 | )* | .000 | * | .000 | * | ||||||||||
Total from investment operations | .013 | .009 | .005 | .000 | * | .000 | * | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (.013 | ) | (.009 | ) | (.005 | ) | (.000 | )* | (.000 | )* | ||||||||||
Net realized gains | — | — | (.000 | )* | (.000 | )* | (.000 | )* | ||||||||||||
Total distributions | (.013 | ) | (.009 | ) | (.005 | ) | (.000 | )* | (.000 | )* | ||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Total Return (%)a | 1.36 | .86 | .55 | .04 | .03 | |||||||||||||||
Ratios to Average Net Assets and Supplemental Data |
| |||||||||||||||||||
Net assets, end of period ($ millions) | 49 | 41 | 38 | 514 | 296 | |||||||||||||||
Ratio of expenses before expense reductions (%) | .34 | .31 | .27 | .24 | .22 | |||||||||||||||
Ratio of expenses after expense reductions (%) | .20 | .20 | .20 | .12 | .10 | |||||||||||||||
Ratio of net investment income (%) | 1.37 | .83 | .32 | .04 | .01 |
a | Total return would have been lower had certain expenses not been reduced. |
* | Amount is less than $.0005. |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares | | | 23 |
Table of Contents
DWSTax-Exempt Portfolio
Tax-Exempt Cash Managed Shares
Years Ended April 30, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Selected Per Share Data |
| |||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Income (loss) from investment operations: |
| |||||||||||||||||||
Net investment income | .012 | .007 | .003 | .000 | * | .000 | * | |||||||||||||
Net realized gain (loss) | .000 | * | (.000 | )b* | (.000 | )* | .000 | * | .000 | * | ||||||||||
Total from investment operations | .012 | .007 | .003 | .000 | * | .000 | * | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (.012 | ) | (.007 | ) | (.003 | ) | (.000 | )* | (.000 | )* | ||||||||||
Net realized gains | — | — | (.000 | )* | (.000 | )* | (.000 | )* | ||||||||||||
Total distributions | (.012 | ) | (.007 | ) | (.003 | ) | (.000 | )* | (.000 | )* | ||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Total Return (%)a | 1.16 | .66 | .31 | .02 | .03 | |||||||||||||||
Ratios to Average Net Assets and Supplemental Data |
| |||||||||||||||||||
Net assets, end of period ($ millions) | 46 | 38 | 55 | 60 | 52 | |||||||||||||||
Ratio of expenses before expense reductions (%) | .54 | .51 | .49 | .44 | .44 | |||||||||||||||
Ratio of expenses after expense reductions (%) | .40 | .41 | .44 | .14 | .10 | |||||||||||||||
Ratio of net investment income (%) | 1.16 | .59 | .23 | .01 | .01 |
a | Total return would have been lower had certain expenses not been reduced. |
b | Due to the timing of subscriptions and redemptions in relation to the operating results of the Fund, the amount shown does not correspond with the aggregate net gain on investments during the period. |
* | Amount is less than $.0005. |
The accompanying notes are an integral part of the financial statements.
24 | | | DWS Tax-Exempt Cash Premier Shares Tax-Exempt Cash Managed Shares |
Table of Contents
Notes to Financial Statements |
A. 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 anopen-end management investment company organized as a Massachusetts business trust.
The Trust offers two funds: DWS Government & Agency Securities Portfolio (formerly Deutsche Government & Agency Securities Portfolio) and DWSTax-Exempt Portfolio (formerly Deutsche Tax-Exempt Portfolio). These financial statements report on DWSTax-Exempt Portfolio (the “Fund”).
DWSTax-Exempt Portfolio offers six classes of shares: DWSTax-Exempt Cash Premier Shares (formerly Deutsche Tax-Exempt Cash Premier Shares), DWSTax-Exempt Money Fund (formerly Deutsche Tax-Exempt Money Fund), DWSTax-Free Money Fund Class S (formerly Deutsche Tax-Free Money Fund Class S), Service Shares,Tax-Exempt Cash Managed Shares andTax-Free Investment Class.
The financial highlights for all classes of shares, other than DWSTax-Exempt Cash Premier Shares andTax-Exempt Cash Managed Shares, are provided separately and are available upon request.
The Fund’s investment income, realized gains and losses, and certainFund-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 the Fund, except that each class bears certain expenses unique to that class such as distribution and service fees, services to shareholders and certain otherclass-specific expenses. Differences inclass-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 toclass-specific arrangements.
The Fund’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which require the use of management estimates. Actual results could differ from those estimates. The Fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of U.S. GAAP. The policies described below are followed consistently by the Fund in the preparation of its financial statements.
In October 2018, the Securities and Exchange Commission adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification, which is intended to
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facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. Effective with the current reporting period, the Fund adopted the amendments with the impacts being that the Fund is no longer required to present components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributable earnings and the amount of undistributed net investment income on the Statements of Changes in Net Assets.
Security Valuation. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The Fund values all securities utilizing the amortized cost method permitted in accordance with Rule2a-7 under the 1940 Act and certain conditions therein. Under this method, which does not take into account unrealized capital gains or losses on securities, an instrument is initially valued at its cost and thereafter assumes a constant accretion/amortization rate to maturity of any discount or premium. Securities held by the Fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
Disclosure about the classification of fair value measurements is included in a table following the Fund’s Investment Portfolio.
Federal Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies and to distribute all of its taxable andtax-exempt income to its shareholders.
At April 30, 2019, the Fund had a net tax basis capital loss carryforward of approximately $15,000, which may be applied against any realized net taxable capital gains indefinitely.
The Fund has reviewed the tax positions for the open tax years as of April 30, 2019 and has determined that no provision for income tax and/or uncertain tax positions is required in the Fund’s financial statements. The Fund’s federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service.
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Distribution of Income. Net investment income of the Fund is declared as a daily dividend and is distributed to shareholders monthly. The Fund may take into account capital gains and losses in its daily dividend declarations. The Fund may also make additional distributions for tax purposes if necessary.
Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Temporary book and tax basis differences will reverse in a subsequent period. There were nobook-to-tax differences for the Fund.
At April 30, 2019, the Fund’s components of distributable earnings (accumulated losses) on a tax basis are as follows:
DWSTax-Exempt Portfolio: | ||||
Undistributed tax-exempt income | $ | 24,054 | ||
Capital loss carryforwards | $ | (15,000 | ) |
At April 30, 2019, DWSTax-Exempt Portfolio had an aggregate cost of investments for federal income tax purposes of $290,264,630.
In addition, the tax character of distributions paid to shareholders by the Fund is summarized as follows:
Years Ended April 30, | ||||||||
Portfolio | 2019 | 2018 | ||||||
DWSTax-Exempt Portfolio: | ||||||||
Distributions fromtax-exempt income | $ | 3,666,516 | $ | 2,436,643 |
Expenses. Expenses of the Trust arising in connection with a specific Fund are allocated to that Fund. Other Trust expenses which cannot be directly attributed to a Fund are apportioned pro rata on the basis of relative net assets among the funds in the Trust.
Contingencies. In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.
Other. Investment transactions are accounted for on trade date. Interest income is recorded on the accrual basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. All discounts and premiums are accreted/amortized for both tax and financial reporting purposes.
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B. Related Parties
Management Agreement. Under an Amended and Restated Investment Management Agreement with DWS Investment Management Americas, Inc. (formerly Deutsche Investment Management Americas Inc.) (“DIMA” or the “Advisor”), an indirect, wholly owned subsidiary of DWS Group GmbH & Co. KGaA (“DWS Group”), the Advisor directs the investments of the Fund in accordance with its investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Fund.
The monthly management fee for the Fund is computed based on the combined average daily net assets of the two funds of the Trust and allocated to the Fund based on its relative net assets, computed and accrued daily and payable monthly, at the following annual rates:
First $500 million of the Funds’ 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% |
Accordingly, for the year ended April 30, 2019, the fee pursuant to the Investment Management Agreement on DWS Tax-Exempt Portfolio was equivalent to an annual rate (exclusive of any applicable waivers/reimbursements) of 0.08% of the Fund’s average daily net assets.
For the period from May 1, 2018 through September 30, 2019, the Advisor has contractually agreed to waive its fees and/or reimburse certain operating expenses of the DWSTax-Exempt Cash Premier Shares to the extent necessary to maintain the total annual operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest) at 0.20%.
In addition, the Advisor has agreed to voluntarily waive additional expenses. The voluntary waiver may be changed or terminated at any time without notice. Under these arrangements, the Advisor waived certain expenses on DWSTax-Exempt Cash Managed Shares.
In addition, the Advisor has also agreed to maintain expenses of certain other classes of the Trust. These rates are disclosed in the respective share classes’ annual reports that are provided separately and are available upon request.
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For the year ended April 30, 2019, fees waived and/or expenses reimbursed for each class are as follows:
DWSTax-Exempt Cash Premier Shares | $ | 57,460 | ||
DWSTax-Exempt Money Fund | 202,120 | |||
DWSTax-Free Money Fund Class S | 68,543 | |||
Service Shares | 35,522 | |||
Tax-Exempt Cash Managed Shares | 75,471 | |||
Tax-Free Investment Class | 8,593 | |||
$ | 447,709 |
Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays the Advisor an annual fee (“Administration Fee”) of 0.10% of the Fund’s average daily net assets, computed and accrued daily and payable monthly. For the year ended April 30, 2019, the Administration Fee was as follows:
Fund | Administration Fee | Unpaid at April 30, 2019 | ||||||
DWSTax-Exempt Portfolio | $ | 303,403 | $ | 23,594 |
Service Provider Fees. DWS Service Company (“DSC”), an affiliate of the Advisor, is the transfer agent,dividend-paying agent and shareholder service agent for the Fund. Pursuant to asub-transfer agency agreement between DSC and DST Systems, Inc. (“DST”), DSC has delegated certain transfer agent,dividend-paying agent and shareholder service agent functions to DST. DSC compensates DST out of the shareholder servicing fee it receives from the Fund. For the year ended April 30, 2019, the amounts charged to the Fund by DSC were as follows:
DWSTax-Exempt Portfolio: | Total Aggregated | Unpaid at April 30, 2019 | ||||||
DWSTax-Exempt Cash Premier Shares | $ | 2,663 | $ | 690 | ||||
DWSTax-Exempt Money Fund | 36,405 | 6,015 | ||||||
DWSTax-Free Money Fund Class S | 29,938 | 4,955 | ||||||
Service Shares | 67,885 | 4,268 | ||||||
Tax-Exempt Cash Managed Shares | 31,160 | 3,758 | ||||||
Tax-Free Investment Class | 5,004 | 859 | ||||||
$ | 173,055 | $ | 20,545 |
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In addition, for the year ended April 30, 2019, the amounts charged to the Fund for recordkeeping and other administrative services provided by unaffiliated third parties, included in the Statement of Operations under “Services to shareholders,” were as follows:
Sub-Recordkeeping | Total Aggregated | |||
DWSTax-Exempt Money Fund | $ | 18,316 | ||
DWSTax-Free Money Fund Class S | 978 | |||
$ | 19,294 |
Distribution Service Agreement. Under the Distribution Service Agreement, in accordance with Rule12b-1 under the 1940 Act, DWS Distributors, Inc. (“DDI”), 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 year ended April 30, 2019, the Distribution Fee was as follows:
DWSTax-Exempt Portfolio: | Distribution Fee | Unpaid at April 30, 2019 | Annual Rate | Contractual Rate | ||||||||||||
Service Shares | $ | 161,991 | $ | 6,880 | .60 | % | .60 | % | ||||||||
Tax-Free Investment Class | 15,245 | 1,357 | .25 | % | .25 | % | ||||||||||
$ | 177,236 | $ | 8,237 |
In addition, DDI 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 Rule12b-1 plan.
For the year ended April 30, 2019, the Service Fee was as follows:
DWS Tax-Exempt Portfolio: | Service Fee | Unpaid at April 30, 2019 | Annual Rate | Contractual Rate | ||||||||||||
Tax-Exempt Cash Managed Shares | $ | 78,792 | $ | 5,641 | .15 | % | .15 | % | ||||||||
Tax-Free Investment Class | 4,269 | 380 | .07 | % | .07 | % | ||||||||||
$ | 83,061 | $ | 6,021 |
Typesetting and Filing Service Fees. Under an agreement with the Fund, DIMA is compensated for providing certainpre-press and regulatory filing services to the Fund. For the year ended April 30, 2019, the amount charged to the Fund by DIMA included in the Statement of Operations under “Reports to shareholders” was as follows:
Fund | Total Aggregated | Unpaid at April 30, 2019 | ||||||
DWSTax-Exempt Portfolio | $ | 47,887 | $ | 21,973 |
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Trustees’ Fees and Expenses. The Fund paid retainer fees to each Trustee not affiliated with the Advisor, plus specified amounts to the Board Chairperson and to each committee Chairperson.
Transactions with Affiliates. The Fund may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is solely due to having a common investment adviser, common officers, or common trustees. During the year ended April 30, 2019, the Fund engaged in securities purchases of $422,475,000 and securities sales of $564,985,000 with an affiliated fund in compliance withRule 17a-7 under the 1940 Act.
C. Line of Credit
The Fund and other affiliated funds (the “Participants”) share in a $400 million revolving credit facility provided by a syndication of banks. The Fund may borrow for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the 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 theone-month LIBOR exceeds the Federal Funds Rate, the amount of such excess. The Fund may borrow up to a maximum of 33 percent of its net assets under the agreement. The Fund had no outstanding loans at April 30, 2019.
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D. Fund Share Transactions
The following table summarizes share and dollar activity in the Fund:
DWSTax-Exempt Portfolio
Year Ended April 30, 2019 | Year Ended April 30, 2018 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Shares sold | ||||||||||||||||
DWSTax-Exempt Cash Premier Shares | 62,299,935 | $ | 62,299,935 | 67,725,230 | $ | 67,725,230 | ||||||||||
DWSTax-Exempt Money Fund | 34,172,341 | 34,172,341 | 51,423,925 | 51,423,925 | ||||||||||||
DWSTax-Free Money Fund Class S | 11,153,741 | 11,153,741 | 13,879,488 | 13,879,488 | ||||||||||||
Service Shares | 53,988,330 | 53,988,330 | 81,813,513 | 81,813,513 | ||||||||||||
Tax-Exempt Cash Managed Shares | 286,624,984 | 286,624,984 | 326,154,215 | 326,154,215 | ||||||||||||
Tax-Free Investment Class | 11,523,394 | 11,523,394 | 9,272,138 | 9,272,138 | ||||||||||||
Account Maintenance Fees | — | — | — | (100 | ) | |||||||||||
$ | 459,762,725 | $ | 550,268,409 | |||||||||||||
Shares issued to shareholders in reinvestment of distributions |
| |||||||||||||||
DWSTax-Exempt Cash Premier Shares | 537,230 | $ | 537,230 | 394,754 | $ | 394,754 | ||||||||||
DWSTax-Exempt Money Fund | 1,659,886 | 1,659,886 | 1,145,507 | 1,145,507 | ||||||||||||
DWSTax-Free Money Fund Class S | 607,214 | 607,214 | 392,467 | 392,467 | ||||||||||||
Service Shares | 108,406 | 108,406 | 36,362 | 36,362 | ||||||||||||
Tax-Exempt Cash Managed Shares | 1,638 | 1,638 | 1,571 | 1,571 | ||||||||||||
Tax-Free Investment Class | 57,387 | 57,387 | 28,002 | 28,002 | ||||||||||||
$ | 2,971,761 | $ | 1,998,663 |
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Year Ended April 30, 2019 | Year Ended April 30, 2018 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Shares redeemed |
| |||||||||||||||
DWSTax-Exempt Cash Premier Shares | (54,454,045 | ) | $ | (54,454,045 | ) | (64,594,618 | ) | $ | (64,594,618 | ) | ||||||
DWSTax-Exempt Money Fund | (47,917,455 | ) | (47,917,455 | ) | (59,547,276 | ) | (59,547,276 | ) | ||||||||
DWSTax-Free Money Fund Class S | (11,058,223 | ) | (11,058,223 | ) | (18,119,437 | ) | (18,119,437 | ) | ||||||||
Service Shares | (82,572,012 | ) | (82,572,012 | ) | (79,236,036 | ) | (79,236,036 | ) | ||||||||
Tax-Exempt Cash Managed Shares | (279,241,365 | ) | (279,241,365 | ) | (342,806,879 | ) | (342,806,879 | ) | ||||||||
Tax-Free Investment Class | (10,712,270 | ) | (10,712,270 | ) | (12,340,478 | ) | (12,340,478 | ) | ||||||||
$ | (485,955,370 | ) | $ | (576,644,724 | ) | |||||||||||
Net increase (decrease) |
| |||||||||||||||
DWSTax-Exempt Cash Premier Shares | 8,383,120 | $ | 8,383,120 | 3,525,366 | $ | 3,525,366 | ||||||||||
DWSTax-Exempt Money Fund | (12,085,228 | ) | (12,085,228 | ) | (6,977,844 | ) | (6,977,844 | ) | ||||||||
DWSTax-Free Money Fund Class S | 702,732 | 702,732 | (3,847,482 | ) | (3,847,482 | ) | ||||||||||
Service Shares | (28,475,276 | ) | (28,475,276 | ) | 2,613,839 | 2,613,839 | ||||||||||
Tax-Exempt Cash Managed Shares | 7,385,257 | 7,385,257 | (16,651,093 | ) | (16,651,093 | ) | ||||||||||
Tax-Free Investment Class | 868,511 | 868,511 | (3,040,338 | ) | (3,040,338 | ) | ||||||||||
Account Maintenance Fees | — | — | — | (100 | ) | |||||||||||
$ | (23,220,884 | ) | $ | (24,377,652 | ) |
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Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Cash Account Trust and Shareholders of DWSTax-Exempt Portfolio:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of DWSTax-Exempt Portfolio (formerly DeutscheTax-Exempt Portfolio) (the “Fund”) (one of the funds constituting Cash Account Trust) (the “Trust”), including the investment portfolio, as of April 30, 2019, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Cash Account Trust) at April 30, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are
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required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2019, by correspondence with the custodian and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies in the DWS family of funds since at least 1979, but we are unable to determine the specific year.
Boston, Massachusetts
June 19, 2019
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Information About Your Fund’s Expenses
As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service(12b-1) fees and other Fund expenses. Examples of transaction costs include account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recentsix-month period, the Fund limited these expenses; had it not done so, expenses would have been higher for the DWSTax-Exempt Cash Premier Shares andTax-Exempt Cash Managed Shares. The example in the table is based on an investment of $1,000 invested at the beginning of thesix-month period and held for the entire period (November 1, 2018 to April 30, 2019).
The tables illustrate your Fund’s expenses in two ways:
– | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
– | Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The “Expenses Paid per $1,000” line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. If these transaction costs had been included, your costs would have been higher.
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Expenses and Value of a $1,000 Investment for the six months ended April 30, 2019 (Unaudited) | ||||||||
Actual Fund Return | DWS Tax-Exempt Cash Premier Shares | Tax-Exempt Cash Managed Shares | ||||||
Beginning Account Value 11/1/18 | $ | 1,000.00 | $ | 1,000.00 | ||||
Ending Account Value 4/30/19 | $ | 1,007.40 | $ | 1,006.40 | ||||
Expenses Paid per $1,000* | $ | 1.00 | $ | 1.99 | ||||
Hypothetical 5% Fund Return | ||||||||
Beginning Account Value 11/1/18 | $ | 1,000.00 | $ | 1,000.00 | ||||
Ending Account Value 4/30/19 | $ | 1,023.80 | $ | 1,022.81 | ||||
Expenses Paid per $1,000* | $ | 1.00 | $ | 2.01 |
* | Expenses are equal to the Fund’s annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recentsix-month period), then divided by 365. |
Annualized Expense Ratios | ||||
DWSTax-Exempt Cash Premier Shares | .20 | % | ||
Tax-Exempt Cash Managed Shares | .40 | % |
For more information, please refer to each Fund’s prospectus.
For an analysis of the fees associated with an investment in the Fund or similar funds, please refer to tools.finra.org/fund_analyzer/.
Tax Information | (Unaudited) |
Of the dividends paid from net investment income for the taxable year ended April 30, 2019, 100% are designated as exempt interest dividends for federal income tax purposes.
Please consult a tax advisor if you have questions about federal or state income tax laws, or on how to prepare your tax returns. If you have specific questions about your account, please call (800)728-3337.
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Proxy Voting
The Fund’s policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 are available on our Web site —dws.com/en-us/resources/proxy-voting — or on the SEC’s Web site — sec.gov. To obtain a written copy of the Fund’s policies and procedures without charge, upon request, call us toll free at (800)728-3337.
Portfolio Holdings
Following the Fund’s fiscal first and thirdquarter-end, a complete portfolio holdings listing was filed with the SEC on FormN-Q. Effective from and after the Fund’s first fiscal quarter-end of 2019, Form N-Q is rescinded and will not be filed with the SEC. In addition, each month, information about the Fund and its portfolio holdings is filed with the SEC on FormN-MFP. The SEC delays the public availability of the information filed on FormN-MFP for 60 days after the end of the reporting period included in the filing. These forms will be available on the SEC’s Web site at sec.gov. The Fund’s portfolio holdings are also posted on dws.com as of each month-end. Please see the Fund’s current prospectus for more information.
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Advisory Agreement Board Considerations and Fee Evaluation
The Board of Trustees (hereinafter referred to as the “Board” or “Trustees”) approved the renewal of DWSTax-Exempt Portfolio’s (the “Fund”) investment management agreement (the “Agreement”) with DWS Investment Management Americas, Inc. (“DIMA”) in September 2018.
In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:
– | During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”). |
– | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board’s Contract Committee reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Board. The Board then reviewed the Contract Committee’s findings and recommendations. |
– | The Board also received extensive information throughout the year regarding performance of the Fund. |
– | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
– | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s Rule12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DIMA and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered, generally, that shareholders chose to invest or remain invested in the Fund knowing that DIMA managed the
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Fund. DIMA is part of DWS Group GmbH & Co. KGaA (“DWS Group”). DWS Group is a global asset management business that offers a wide range of investing expertise and resources, including research capabilities in many countries throughout the world. In 2018, approximately 20% of DWS Group’s shares were sold in an initial public offering, with Deutsche Bank AG owning the remaining shares.
As part of the contract review process, the Board carefully considered the fees and expenses of each DWS fund overseen by the Board in light of the fund’s performance. In many cases, this led to the negotiation and implementation of expense caps. As part of these negotiations, the Board indicated that it would consider relaxing these caps in future years following sustained improvements in performance, among other considerations.
While shareholders may focus primarily on fund performance and fees, the Fund’s Board considers these and many other factors, including the quality and integrity of DIMA’s personnel and administrative support services provided by DIMA, such as back-office operations, fund valuations, and compliance policies and procedures.
Nature, Quality and Extent of Services. The Board considered the terms of the Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DIMA provides portfolio management services to the Fund and that, pursuant to a separate administrative services agreement, DIMA provides administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel and the resources made available to such personnel. The Board reviewed the Fund’s performance over short-term and long-term periods and compared those returns to various agreed-upon performance measures, including a peer universe compiled using information supplied by iMoneyNet, an independent fund data service. The Board also noted that it has put into place a process of identifying “Funds in Review” (e.g., funds performing poorly relative to a peer universe), and receives additional reporting from DIMA regarding such funds and, where appropriate, DIMA’s plans to address underperformance. The Board believes this process is an effective manner of identifying and addressing underperforming funds. Based on the information provided, the Board noted that, for theone- and three-year periods ended December 31, 2017, the Fund’s gross performance (DWSTax-Exempt Cash Premier 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).
Fees and Expenses. The Board considered the Fund’s investment management fee schedule, operating expenses and total expense ratios, and comparative information provided by Broadridge Financial Solutions, Inc. (“Broadridge”) and the Fee Consultant regarding investment
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management fee rates paid to other investment advisors by similar funds (1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates paid by the Fund, which include a 0.10% fee paid to DIMA under the Fund’s administrative services agreement, were lower than the median (1st quartile) of the applicable Broadridge peer group (based on Broadridge data provided as of December 31, 2017). Based on Broadridge data provided as of December 31, 2017, the Board noted that the Fund’s total operating expenses (excluding12b-1 fees and/or shareholder administration fees, if applicable) were higher than the median (4th quartile) of the applicable Broadridge expense universe (less any applicable12b-1 fees) for the following share classes: Service Shares, DWSTax-Exempt Cash Premier Shares, Tax Free Investment Class shares,Tax-Exempt Cash Managed Shares, DWSTax-Exempt Money Fund shares and DWSTax-Free Money Fund Class S shares. The Board noted the expense limitations agreed to by DIMA. The Board also noted the voluntary fee waivers implemented by DIMA prior to December 31, 2017 to ensure the Fund maintained a positive yield. The Board considered the Fund’s management fee rate as compared to fees charged by DIMA to comparable DWS U.S. registered funds (“DWS Funds”), noting that DIMA indicated that it does not provide services to any other comparable DWS Funds. The information requested by the Board as part of its review of fees and expenses also included information about institutional accounts (including anysub-advised funds and accounts) and funds offered primarily to European investors (“DWS Europe Funds”) managed by DWS Group. The Board noted that DIMA indicated that DWS Group does not manage any institutional accounts or DWS Europe Funds comparable to the Fund.
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DIMA.
Profitability. The Board reviewed detailed information regarding revenues received by DIMA under the Agreement. The Board considered the estimated costs to DIMA, andpre-tax profits realized by DIMA, from advising the DWS Funds, as well as estimates of thepre-tax profits attributable to managing the Fund in particular. The Board also received information regarding the estimated enterprise-wide profitability of DIMA and its affiliates with respect to all fund services in totality and by fund. The Board and the Fee Consultant reviewed DIMA’s methodology in allocating its costs to the management of the Fund. Based on the information provided, the Board concluded that thepre-tax profits realized by DIMA in connection with the management of the Fund were not unreasonable. The Board also reviewed certain publicly available information regarding the profitability of certain similar investment
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management firms. The Board noted that, while information regarding the profitability of such firms is limited (and in some cases is not necessarily prepared on a comparable basis), DIMA and its affiliates’ overall profitability with respect to the DWS Funds (after taking into account distribution and other services provided to the funds by DIMA and its affiliates) was lower than the overall profitability levels of most comparable firms for which such data was available.
Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Fund and whether the Fund benefits from any economies of scale. The Board noted that the Fund’s investment management fee schedule includes fee breakpoints. The Board concluded that the Fund’s fee schedule represents an appropriate sharing between the Fund and DIMA of such economies of scale as may exist in the management of the Fund at current asset levels.
Other Benefits to DIMA and Its Affiliates. The Board also considered the character and amount of other incidental or“fall-out” benefits received by DIMA and its affiliates, including any fees received by DIMA for administrative services provided to the Fund, any fees received by an affiliate of DIMA for transfer agency services provided to the Fund and any fees received by an affiliate of DIMA for distribution services. The Board also considered benefits to DIMA related to brokerage and soft-dollar allocations, including allocating brokerage to pay for research generated by parties other than the executing broker dealers, which pertain primarily to funds investing in equity securities. In addition, the Board considered the incidental public relations benefits to DIMA related to DWS Funds advertising and cross-selling opportunities among DIMA products and services. The Board considered these benefits in reaching its conclusion that the Fund’s management fees were reasonable.
Compliance. The Board considered the significant attention and resources dedicated by DIMA to its compliance processes in recent years. The Board noted in particular (i) the experience, seniority and time commitment of the individuals serving as DIMA’s and the Fund’s chief compliance officers and (ii) the substantial commitment of resources by DIMA and its affiliates to compliance matters, including the retention of compliance personnel.
Based on all of the information considered and the conclusions reached, the Board unanimously determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Trustees and counsel present. It is possible that individual Independent Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.
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The following table presents certain information regarding the Board Members and Officers of the Fund. Each Board Member’s year of birth is set forth in parentheses after his or her name. Unless otherwise noted, (i) each Board Member has engaged in the principal occupation(s) noted in the table for at least the most recent five years, although not necessarily in the same capacity; and (ii) the address of each Independent Board Member is c/o Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA02199-3600. Except as otherwise noted below, the term of office for each Board Member is until the election and qualification of a successor, or until such Board Member sooner dies, resigns, is removed or as otherwise provided in the governing documents of the Fund. Because the Fund does not hold an annual meeting of shareholders, each Board Member will hold office for an indeterminate period. The Board Members may also serve in similar capacities with other funds in the fund complex.
Independent Board Members | ||||||||
Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
Keith R. Fox, CFA (1954)
Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods importer and distributor); The Kennel Shop (retailer); former Chairman, National Association of Small Business Investment Companies; former Directorships: BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) (2011–2012) | 82 | — | |||||
John W. Ballantine (1946)
Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population well-being and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc. and Oak Brook Bank; Prisma Energy International; Public Radio International. Not-for-Profit Director/Trustee: Palm Beach Civic Association; Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago | 82 | Portland General Electric2 (utility company) (2003– present) |
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Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
Henry P. Becton, Jr. (1943)
Board Member since 1990 | Vice Chair and former President, WGBH Educational Foundation. Directorships: Public Radio International; Public Radio Exchange (PRX); The Pew Charitable Trusts (charitable organization); Massachusetts Humane Society; Overseer of the New England Conservatory; former Directorships: Becton Dickinson and Company2 (medical technology company); Belo Corporation2 (media company); The PBS Foundation; Association of Public Television Stations; Boston Museum of Science; American Public Television; Concord Academy; New England Aquarium; Mass. Corporation for Educational Telecommunications; Committee for Economic Development; Public Broadcasting Service; Connecticut College; North Bennett Street School (Boston); American Documentary, Inc. (public media) | 82 | — | |||||
Dawn-Marie Driscoll (1946)
Board Member since 1987 | Emeritus Executive Fellow, Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988). Directorships: Advisory Board, Center for Business Ethics, Bentley University; Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 82 | — | |||||
Richard J. Herring (1946)
Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); Director, The Wharton Financial Institutions Center (since 1994); formerly: Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Formerly Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), and Nonexecutive Director of Barclays Bank DE (2010–2018) | 82 | Director, Aberdeen Japan Fund (since 2007) |
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Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
William McClayton (1944)
Board Member since 2004 | Private equity investor (since October 2009); previously, Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001–2009); Directorship: Board of Managers, YMCA of Metropolitan Chicago; formerly: Senior Partner, Arthur Andersen LLP (accounting) (1966–2001); Trustee, Ravinia Festival | 82 | — | |||||
Rebecca W. Rimel (1951)
Board Member since 1995 | President, Chief Executive Officer and Director, The Pew Charitable Trusts (charitable organization) (1994–present); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012) | 82 | Director, Becton Dickinson and Company2 (medical technology company) (2012– present); Director, BioTelemetry Inc.2(health care) (2009– present) | |||||
William N. Searcy, Jr. (1946)
Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2(telecommunications) (November 1989–September 2003); Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 82 | — | |||||
Jean Gleason Stromberg (1943)
Board Member since 1997 | Retired. Formerly, Consultant (1997–2001); Director, Financial Markets U.S. Government Accountability Office (1996–1997); Partner, Norton Rose Fulbright, L.L.P. (law firm) (1978–1996); former Directorships: The William and Flora Hewlett Foundation (charitable organization) (2000–2015); Service Source, Inc. (nonprofit), Mutual Fund Directors Forum (2002–2004), American Bar Retirement Association (funding vehicle for retirement plans) (1987–1990 and 1994–1996) | 82 | — |
Officers4 | ||
Name, Year of Birth, Position with the Fund and Length of Time Served5 | Business Experience and Directorships During the Past Five Years | |
Hepsen Uzcan6(1974)
President and Chief Executive Officer, 2017–present | Managing Director,3 DWS; Secretary, DWS USA Corporation (since March 2018); Assistant Secretary, DWS Distributors, Inc. (since June 25, 2018); Director and Vice President, DWS Service Company (since June 25, 2018); Assistant Secretary, DWS Investment Management Americas, Inc. (since June 25, 2018); and Director and President, DB Investment Managers, Inc. (since June 25, 2018); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019) |
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Name, Year of Birth, Position with the Fund and Length of Time Served5 | Business Experience and Directorships During the Past Five Years | |
John Millette8(1962)
Vice President and Secretary, 1999–present | Director,3DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); and Director and Vice President, DWS Trust Company (2016–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017) | |
Diane Kenneally8,9(1966)
Chief Financial Officer and Treasurer, since 2018 | Director,3 DWS; formerly: Assistant Treasurer for the DWS funds (2007–2018) | |
Paul Antosca8(1957)
Assistant Treasurer, 2007–present | Director,3DWS | |
Sheila Cadogan8(1966)
Assistant Treasurer, 2017–present | Director,3DWS; Director and Vice President, DWS Trust Company (since 2018) | |
Scott D. Hogan8(1970)
Chief Compliance Officer, 2016–present | Director,3DWS | |
Caroline Pearson8(1962)
Chief Legal Officer, 2010–present | Managing Director,3DWS; formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); and Secretary, Deutsche AM Service Company (2010–2017) | |
Wayne Salit7(1967) Anti-Money Laundering Compliance Officer, 2014–present | Director,3 Deutsche Bank; and AML Officer, DWS Trust Company; formerly: Managing Director, AML Compliance Officer at BNY Mellon (2011–2014); and Director, AML Compliance Officer at Deutsche Bank (2004–2011) | |
Ciara Crawford10 (1984) Assistant Secretary, since February 8, 2019 | Associate, DWS (since 2015); previously, Legal Assistant at Accelerated Tax Solutions. |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Executive title, not a board directorship. |
4 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
5 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
6 | Address: 345 Park Avenue, New York, NY 10154. |
7 | Address: 60 Wall Street, New York, NY 10005. |
8 | Address: One International Place, Boston, MA 02110. |
9 | Appointed Treasurer and Chief Financial Officer effective July 2, 2018. |
10 | Address: 5022 Gate Parkway, Suite 400, Jacksonville, FL 32256. |
The Fund’s Statement of Additional Information (“SAI”) includes additional information about the Board Members. The SAI is available, without charge, upon request. If you would like to request a copy of the SAI, you may do so by calling the followingtoll-free number:(800) 728-3337.
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Notes
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STIM-2
(R-027589-8 6/19)
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April 30, 2019
Annual Report
to Shareholders
DWSTax-Exempt Portfolio
(formerly Deutsche Tax-Exempt Portfolio)
DWSTax-Exempt Money Fund
(formerly Deutsche Tax-Exempt Money Fund)
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s Web site (dws.com), and you will be notified by mail each time a report is posted and provided with a Web site link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank), or if you are a direct investor, by calling(800) 728-3337 or sending an email request to service@dws.com.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call(800) 728-3337 or send an email request to service@dws.com to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with DWS if you invest directly with the Fund.
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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 dws.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.
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. You should not rely on or expect the Advisor to enter into support agreements or take other actions to maintain the Fund’s $1.00 share price. The credit quality of the Fund’s holdings can change rapidly in certain markets, and the default of a single holding could have an adverse impact on the Fund’s share price. The Fund’s share price can also be negatively affected during periods of high redemption pressures and/or illiquid markets. The actions of a few large investors in one class of shares of the Fund may have a significant adverse effect on the share prices of all classes of shares of the Fund. Please read the prospectus for specific details regarding the Fund’s risk profile.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services.
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
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Portfolio Management Review | (Unaudited) |
Market Overview
All performance information below is historical and does not guarantee future results. Investment return and principal fluctuate, so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit dws.com for the Funds’ most recentmonth-end performance. The7-day current yield refers to the income paid by the Funds over a7-day period expressed as an annual percentage rate of each Fund’s shares outstanding. Yields fluctuate and are not guaranteed.
Over the past 12 months ended April 30, 2019, yields across the money market yield curve fluctuated based on the growing U.S. economy and evolving U.S. Federal Reserve (the Fed) statements and actions. In light of continued economic strength and a tight labor market, the Federal Open Market Committee (FOMC) raised short-term rates at its June 2018 meeting. In September, the Fed once again raised rates, with accompanying statements that at the time were viewed as aggressive regarding the prospects for future rate hikes. In December, a number of factors contributed to a considerable increase in financial market volatility and a tightening in overall financial conditions. These factors included statements by the Fed following its December 2018 rate hike. In December, the Fed’s messaging disappointed market watchers because the central bank did not commit to a pause in its rate hikes, despite signs that growth was slowing in some parts of the global economy. Disappointment in the Fed’s statements during the fourth quarter of 2018 coincided with a major correction in the stock markets, an inverted yield curve (often a predictor of economic recession), a widening of credit spreads, apparent difficulties in trade talks with China, and a U.S. government shutdown.
In January, the short-term rate environment underwent a meaningful change: Responding to the significant financial market disruptions that had taken place in late 2018, the Fed pivoted dramatically, taking all of its rate hike forecasts off the table and changing from a hawkish to a neutral (to some observers, even dovish) monetary policy stance. The Fed not only walked backed its projections of fed funds rate increases, but also lowered its U.S. economic growth estimates. Money market participants took the altered short-term rate expectations even further by “pricing in” a Fed rate cut in early 2020. At the end of the12-month period, the
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market consensus was that in terms of possible short-term rate changes, the Fed would most likely be on hold for the remainder of 2019.
Positive Contributors to Fund Performance
DWSTax-Exempt Portfolio seeks to provide maximum current income that is exempt from federal income taxes to the extent consistent with stability of capital.
For the DWS Tax Exempt Portfolio, we sought to achieve an attractive yield by implementing a strategic balance of short liquidity instruments, as well as longer-term products. With an increase in market volatility, keeping overweight balances in floating-rate VRDNs (Variable Rate Demand Notes) enabled the Fund to purchase fixed-term commercial paper with maturities of 30 to 90 days, providing what we believe to be attractive yield. (The interest rate of variable rate securities adjusts periodically based on indices such as the Securities Industry and Financial Market Association Index of Variable Rate Demand Notes. Because the interest rates of these instruments adjust as market conditions change, they provide flexibility in an uncertain interest rate environment.)
Negative Contributors to Fund Performance
The types of securities that we invested in tended to have lower yields than issues carrying more risk. We preferred to be cautious during a time of market uncertainty. In the end this may have cost the Fund some yield, but we believe that this represented a prudent approach to preserving principal.
Outlook and Positioning
We are cautious regarding current U.S. economic policy, the global geopolitical situation, and the agenda on trade that the administration is pursuing. However, we believe that the economy can continue to expand, though with a possible slowdown later this year or early in 2020. For now we are positioning the Fund for continued growth. With no Fed rate hikes projected in the coming months, we plan to continue our current portfolio strategy until there is a significant shift in the market environment.
We continue our insistence on what we believe to be the highest credit quality within the Fund. We also plan to maintain what we believe to be
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our conservative investment strategies and standards under the current market conditions. We continue to apply what we believe to be a careful approach to investing on behalf of the Fund and to seek competitive yield for our shareholders.
Fund Performance(as of April 30, 2019)
Performance is historical and does not guarantee future results. Current performance may be lower or higher than the performance data quoted.
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
7-Day Current Yield | ||||
DWSTax-Exempt Money Fund | 1.93%* | |||
Equivalent Taxable Yield | 2.96%** |
Yields are historical, will fluctuate and do not guarantee future performance. The7-day current yield refers to the income paid by the Fund over a7-day period expressed as an annual percentage rate of the Fund’s shares outstanding. For the most current yield information, visit our Web site at dws.com.
* | The 7-Day Current Yield would have been 1.71%, had certain expenses not been reduced. |
** | The equivalent taxable yield allows you to compare with the performance of taxable money market funds. For the DWSTax-Exempt Portfolio, the equivalent taxable yield is based upon the marginal income tax rate of 40.8%. Income may be subject to local taxes and, for some investors, the alternative minimum tax. |
Portfolio Management Team
A group of investment professionals is responsible for theday-to-day management of the Fund. These investment professionals have a broad range of experience managing money market funds.
The views expressed reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The management team’s views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Past performance is no guarantee of future results. Current and future portfolio holdings are subject to risk.
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Terms to Know
Theyield curve is a graphical representation of how yields on bonds of different maturities compare. Normally, yield curves slant up, as bonds with longer maturities typically offer higher yields than short-term bonds.
Floating-rate securities are debt instruments with floating-rate coupons that generally reset every 30 to 90 days. While floating-rate securities are senior to equity and fixed-income securities, there is no guaranteed return of principal in case of default. Floating-rate issues often have less interest-rate risk than other fixed-income investments. Floating-rate securities are most often secured assets, generally senior to a company’s secured debt, and can be transferred to debt holders, resulting in potential downside risk.
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* | The Fund is compared to its respective iMoneyNet Category: NationalTax-Free Retail Money Fund Average — Category consists of all nationaltax-free and municipal retail funds. Portfolio holdings oftax-free funds include Rated and Unrated Demand Notes, Rated and Unrated General Market Notes; Commercial Paper; Put Bonds; AMT Paper and OtherTax-Free Holdings. |
Weighted average maturity, also known as effective maturity, is the weighted average of the maturity date of bonds held by the Fund taking into consideration any available maturity shortening features.
Portfolio holdings and characteristics are subject to change.
For more complete details about the Fund’s holdings, see pages 8–18. A quarterly Fact Sheet is available on dws.com or upon request.
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Investment Portfolio | as of April 30, 2019 |
Principal Amount ($) | Value ($) | |||||||
Municipal Investments 94.8% | ||||||||
Alabama 0.5% | ||||||||
Tuscaloosa County, AL, Industrial Development Authority, Gulf Opportunity Zone, Hunt Refining Project, Series I, 144A, 2.33%*, 5/7/2019, LOC: Bank of Nova Scotia | 1,600,000 | 1,600,000 | ||||||
Alaska 0.5% | ||||||||
Alaska, State Industrial Development & Export Authority Revenue, Series B, 2.3%*, 5/1/2019, LOC: BankTokyo-Mitsubishi UFJ | 1,500,000 | 1,500,000 | ||||||
Arizona 1.5% | ||||||||
Arizona, State Health Facilities Authority Revenue, Dignity Health, Series A, 2.15%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 215,000 | 215,000 | ||||||
Arizona, State Health Facilities Authority, Banner Health, Series G, 2.42%*, 5/7/2019, LOC: Wells Fargo Bank NA | 285,000 | 285,000 | ||||||
Maricopa County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Sani Angelin Apartments Project, Series A, AMT, 2.5%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 240,000 | 240,000 | ||||||
Maricopa County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Sanitary Clemente Apartments Project, Series A, AMT, 2.45%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 810,000 | 810,000 | ||||||
Maricopa County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Sanitary Fernando Apartments Project, Series A, AMT, 2.45%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 445,000 | 445,000 | ||||||
Pima County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Eastside PL Apartments, 2.4%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 1,350,000 | 1,350,000 | ||||||
Pima County, AZ, Industrial Development Authority, Series A, 2.4%*, 5/7/2019, LOC: Federal Home Loan Bank | 950,000 | 950,000 | ||||||
|
| |||||||
4,295,000 | ||||||||
Arkansas 3.1% |
| |||||||
Little Rock, AR, Metrocentere Improvement District No.1, Little Rock Newspapers, Inc., 2.3%*, 5/1/2019, LOC: JPMorgan Chase Bank NA | 2,500,000 | 2,500,000 | ||||||
Lowell, AR, Industrial Development Revenue, Little Rock Newspapers Project, AMT, 2.53%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 6,500,000 | 6,500,000 | ||||||
|
| |||||||
9,000,000 |
The accompanying notes are an integral part of the financial statements.
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Principal Amount ($) | Value ($) | |||||||
California 3.3% |
| |||||||
California, Statewide Community Development Authority, SeriesB-5, 1.77%, 8/7/2019 | 6,250,000 | 6,250,000 | ||||||
California, Wells Fargo Stage Trust Various States, Series 94C, 144A, AMT, MUNIPSA + 0.340%, 2.64%**, Mandatory Put 7/24/2019 @ 100, 5/1/2030, GTY: Wells Fargo Bank NA, LIQ: Wells Fargo Bank NA | 2,500,000 | 2,500,000 | ||||||
Los Angeles, CA, Municipal Improvement Corp., SeriesA-1, TECP, 1.66%, 5/30/2019 | 1,000,000 | 1,000,000 | ||||||
|
| |||||||
9,750,000 | ||||||||
Colorado 4.5% |
| |||||||
Colorado, State Education Loan Program, Series A, 5.0%, 6/27/2019 | 12,500,000 | 12,566,113 | ||||||
Colorado, State Housing & Finance Authority, Series I - AA2, 2.45%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 500,000 | 500,000 | ||||||
|
| |||||||
13,066,113 | ||||||||
Connecticut 0.4% |
| |||||||
Connecticut, Tender Option Bond Trust, Series2018-XG0204, | 1,135,000 | 1,135,000 | ||||||
District of Columbia 0.3% |
| |||||||
District of Columbia, Georgetown University Revenue,Series C-1, 2.32%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 420,000 | 420,000 | ||||||
District of Columbia, Metropolitan Airport Authority Systems Revenue, SeriesC-1, AMT, 2.35%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 450,000 | 450,000 | ||||||
|
| |||||||
870,000 | ||||||||
Florida 10.3% |
| |||||||
Gainesville, FL, General Obligation Notes, Series C, TECP, 1.7%, 5/6/2019 | 2,000,000 | 2,000,000 | ||||||
Gainesville, FL, Industrial Development Revenue, Gainesville Hillel, Inc. Project, 2.15%*, 5/7/2019, LOC: Northern Trust Company | 4,150,000 | 4,150,000 | ||||||
Gainesville, FL, General Obligation Notes: |
| |||||||
Series C, TECP, 1.69%, 5/2/2019 | 11,000,000 | 11,000,000 | ||||||
Series A, TECP, 1.83%, 6/3/2019 | 5,500,000 | 5,500,000 | ||||||
Miami-dade County, FL, Seaport Revenue, Series A, 2.3%*, 5/7/2019, LOC: PNC Bank NA | 925,000 | 925,000 | ||||||
Palm Beach County, FL, Henry Morrison Flagler Project Revenue, 2.4%*, 5/7/2019, LOC: Northern Trust Company | 1,300,000 | 1,300,000 | ||||||
Sarasota County, FL, State Revenue Planned Parenthood, Inc. Project, 2.4%*, 5/7/2019, LOC: BMO Harris Bank NA | 5,230,000 | 5,230,000 | ||||||
|
| |||||||
30,105,000 |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Exempt Money Fund | | | 9 |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Georgia 7.2% |
| |||||||
Atlanta City, GA, Second Lien Airport Passanger Facility Charge & Third Lien Airport General Revenue, Series 2016H-3, TECP, 2.05%, 5/31/2019 | 200,000 | 200,000 | ||||||
Atlanta City, GA, Airport General Revenue, Series 2016H-1, TECP, 2.05%, 5/31/2019 | 230,000 | 230,000 | ||||||
Atlanta City, GA, Second Lien Airport Passanger Facility Charge & Third Lien Airport General Revenue, Series H-3: | ||||||||
TECP, 1.83%, 5/31/2019 | 137,000 | 137,000 | ||||||
TECP, 1.9%, 5/31/2019 | 234,000 | 234,000 | ||||||
City of Atlanta, GA, Airport General Revenue: |
| |||||||
SeriesF-3, TECP, 1.95%, 7/2/2019 | 200,000 | 200,000 | ||||||
Series-F-1, TECP, 1.95%, 7/2/2019 | 200,000 | 200,000 | ||||||
Georgia, General Obligation Notes, Series85-A, TECP, 1.78%, 6/5/2019 | 12,500,000 | 12,500,000 | ||||||
Georgia, Tender Option Bond Trust Receipts,Series 2018-XF0709, 144A, 2.4%*, 5/7/2019, LIQ: JPMorgan Chase Bank NA | 6,800,000 | 6,800,000 | ||||||
Monroe County, GA, Development Authority Pollution Control Revenue, Oglethorpe Power Corp., Series A, 2.34%*, 5/7/2019, LOC: Bank of Montreal | 450,000 | 450,000 | ||||||
|
| |||||||
20,951,000 | ||||||||
Idaho 1.7% |
| |||||||
Idaho, State Health Facilities Authority, Hospital Revenue, Trinity Health Credit Group, Series ID, 1.7%**, 12/1/2048 | 5,000,000 | 5,000,000 | ||||||
Illinois 10.3% |
| |||||||
Channahon, IL, Morris Hospital Revenue, 2.31%*, 5/7/2019, LOC: U.S. Bank NA | 4,005,000 | 4,005,000 | ||||||
Illinois, Educational Facilities Authority, Chicago Zoological Society, Series B, 2.4%*, 5/7/2019, LOC: Northern Trust Company | 3,955,000 | 3,955,000 | ||||||
Illinois, Southwestern Development Authority Solid Waste Disposal Revenue, Waste Management, Inc., Project, AMT, 2.35%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 400,000 | 400,000 | ||||||
Illinois, State Development Finance Authority, Chicago Horticultural, 2.3%*, 5/7/2019, LOC: BMO Harris Bank NA | 2,600,000 | 2,600,000 | ||||||
Illinois, State Development Finance Authority, Ignatius College Project, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 2,000,000 | 2,000,000 | ||||||
Illinois, State Development Finance Authority, Industrial Development Revenue, Series A, AMT, 2.37%*, 5/7/2019, LOC: BMO Harris Bank NA | 565,000 | 565,000 | ||||||
Illinois, State Development Finance Authority, Jewish Council Youth Services, 2.31%*, 5/7/2019, LOC: BMO Harris Bank NA | 1,400,000 | 1,400,000 |
The accompanying notes are an integral part of the financial statements.
10 | | | DWS Tax-Exempt Money Fund |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Illinois, State Development Finance Authority, St. Ignatius College Preparatory, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 3,850,000 | 3,850,000 | ||||||
Illinois, State Development Finance Authority, YMCA Metropolitan Chicago Project, 2.15%*, 5/7/2019, LOC: BMO Harris Bank NA | 1,000,000 | 1,000,000 | ||||||
Illinois, State Educational Facilities Authority Revenue, The Adler Planetarium, 2.26%*, 5/7/2019, LOC: PNC Bank NA | 1,100,000 | 1,100,000 | ||||||
Illinois, State Educational Facilities Authority, National Louis University, Series B, 2.3%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 190,000 | 190,000 | ||||||
Illinois, State Finance Authority Revenue, North Park University Project, 2.15%*, 5/7/2019, LOC: U.S. Bank NA | 1,900,000 | 1,900,000 | ||||||
Illinois, State Finance Authority Revenue, Uhlich Children’s Advantage Network, 2.31%*, 5/7/2019, LOC: U.S. Bank NA | 1,885,000 | 1,885,000 | ||||||
Illinois, State Housing Development Authority, Multi-Family Housing Revenue, 2.44%*, 5/7/2019, LIQ: Freddie Mac, LOC: Freddie Mac | 4,325,000 | 4,325,000 | ||||||
University of Illinois: | ||||||||
2.15%*, 5/7/2019 , LOC: JPMorgan Chase Bank NA | 330,000 | 330,000 | ||||||
2.42%*, 5/7/2019 , LOC: Wells Fargo Bank NA | 425,000 | 425,000 | ||||||
|
| |||||||
29,930,000 | ||||||||
Indiana 2.6% |
| |||||||
Elkhart County, IN, Multy-Family Revenue, Ashton Pines Apartments, Series A, 2.35%*, 5/7/2019, LOC: Federal Home Loan Bank | 500,000 | 500,000 | ||||||
Indiana, State Finance Authority, Health Systems Revenue, Sisters of St. Francis Health, Series F, 2.32%*, 5/7/2019, LOC: Bank of NY Mellon | 2,900,000 | 2,900,000 | ||||||
Rockport, IN, Pollution Control Revenue, AEP Generating Co., Series B, 2.42%*, 5/7/2019, LOC: BankTokyo-Mitsubishi UFJ | 4,175,000 | 4,175,000 | ||||||
|
| |||||||
7,575,000 | ||||||||
Iowa 1.1% |
| |||||||
Iowa, State Finance Authority Midwestern Disaster Area Revenue, 2.35%*, 5/7/2019 | 405,000 | 405,000 | ||||||
Iowa, State Finance Authority, Economic Development Revenue, Series A, 2.34%*, 5/7/2019 | 300,000 | 300,000 | ||||||
Iowa, State Finance Authority, Single Family Mortgage Revenue, Mortgage Backed Securities Program: | ||||||||
Series D, 2.34%*, 5/7/2019 , SPA: Federal Home Loan Bank | 1,550,000 | 1,550,000 | ||||||
Series E, 2.34%*, 5/7/2019 , SPA: Federal Home Loan Bank | 855,000 | 855,000 | ||||||
|
| |||||||
3,110,000 |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Exempt Money Fund | | | 11 |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Kansas 0.3% |
| |||||||
Olathe, KS, Industrial Revenue, Multi Modal Diamant Boart, Series A, AMT, 2.46%*, 5/7/2019, LOC: Svenska Handelsbanken | 1,000,000 | 1,000,000 | ||||||
Kentucky 0.7% |
| |||||||
Boone County, KY, Pollution Control Revenue, Duke Energy Kentucky, Inc., 2.37%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 300,000 | 300,000 | ||||||
Louisville & Jefferson County, KY, Regional Airport Authority, UPS Worldwide Forwarding, Series C, AMT, 2.34%*, 5/1/2019 | 1,800,000 | 1,800,000 | ||||||
|
| |||||||
2,100,000 | ||||||||
Louisiana 0.2% |
| |||||||
Louisiana, State Housing Finance Agency, Centerbury House Apartments, 2.31%*, 5/7/2019, LOC: Fannie Mae | 550,000 | 550,000 | ||||||
Maryland 0.2% |
| |||||||
Maryland, State Health & Higher Educational Facilities Authority Revenue, Gaudenzia Foundation, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 500,000 | 500,000 | ||||||
Massachusetts 2.1% |
| |||||||
Massachusetts, Tender Option Bond Trust Receipts, Series 2015-XF2203, 144A, 2.32%*, 5/7/2019, LIQ: Citibank NA | 2,300,000 | 2,300,000 | ||||||
Massachusetts, University of Massachusetts, Building Authority Revenue, Series 2, MUNIPSA + 0.300%, 2.6%**, 11/1/2034 | 3,900,000 | 3,900,000 | ||||||
|
| |||||||
6,200,000 | ||||||||
Michigan 1.8% |
| |||||||
Michigan, Kent Hospital Finance Authority Revenue, Spectrum Health System, Series C, 2.4%*, 5/7/2019, LOC: Bank of NY Mellon | 290,000 | 290,000 | ||||||
University of Michigan, General Obligation Notes, SeriesK-1, TECP, 1.83%, 6/3/2019 | 5,000,000 | 5,000,000 | ||||||
|
| |||||||
5,290,000 | ||||||||
Mississippi 3.3% |
| |||||||
Mississippi, State Business Finance Commission, Gulf Opportunity Zone, Chevron U.S.A., Inc.: | ||||||||
Series F, 2.3%*, 5/7/2019, GTY: Chevron Corp. | 50,000 | 50,000 | ||||||
Series A, 2.44%*, 5/7/2019, GTY: Chevron Corp. | 9,505,000 | 9,505,000 | ||||||
Series B, 2.44%*, 5/7/2019, GTY: Chevron Corp. | 200,000 | 200,000 | ||||||
|
| |||||||
9,755,000 |
The accompanying notes are an integral part of the financial statements.
12 | | | DWS Tax-Exempt Money Fund |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Missouri 1.1% |
| |||||||
Missouri, Tender Option Bond Trust Receipts, Series 2015-XF2198, 144A, 2.33%*, 5/7/2019, LIQ: Citibank NA | 2,660,000 | 2,660,000 | ||||||
St. Louis County, MO, Industrial Development Authority, Educational Whitefield School, Inc., Series B, 2.4%*, 5/7/2019, LOC: U.S. Bank NA | 450,000 | 450,000 | ||||||
|
| |||||||
3,110,000 | ||||||||
Nevada 2.7% |
| |||||||
Clark County, NV, Airport Systems Revenue, SeriesD-1, 2.4%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 6,755,000 | 6,755,000 | ||||||
Nevada, State Housing Division, Sonoma Palms LP, AMT, 2.32%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 1,100,000 | 1,100,000 | ||||||
|
| |||||||
7,855,000 | ||||||||
New York 5.1% |
| |||||||
New York, State Energy Research & Development Authority Facilities Revenue, Consolidated Edison Co., SeriesC-2, AMT, 2.45%*, 5/7/2019, LOC: Mizuho Bank Ltd. | 690,000 | 690,000 | ||||||
New York, State Thruway Authority Revenue, | 1,865,000 | 1,865,000 | ||||||
New York City, NY, Industrial Development Agency, Civic Facility Revenue, Jamaica First Parking LLC Project, 2.32%*, 5/7/2019, LOC: TD Bank NA | 1,185,000 | 1,185,000 | ||||||
New York City, NY, Municipal Finance Authority, Water & Sewer Systems Revenue, SeriesF-2, 2.13%*, 5/7/2019, SPA: JPMorgan Chase Bank NA | 3,470,000 | 3,470,000 | ||||||
New York City, NY, Municipal Water Finance Authority, Water & Sewer Systems Revenue, Second Generation Resolution, SeriesBB-1, 2.38%*, 5/7/2019, SPA: IND & Commercial Bank of China BA | 5,750,000 | 5,750,000 | ||||||
New York City, NY, Transitional Finance Authority Revenue, Future Tax Secured, SeriesA-2A, 2.3%*, 5/2/2019, LOC: Bank Tokyo-Mitsubishi UFJ | 825,000 | 825,000 | ||||||
New York, NY, General Obligation, SeriesJ-6, 2.32%*, 5/1/2019, LOC: Landesbank Hessen-Thuringen | 830,000 | 830,000 | ||||||
New York, NY, State General Obligation, SeriesA-3, 2.31%*, 5/1/2019, SPA: Landesbank Hessen-Thuringen | 175,000 | 175,000 | ||||||
Westchester County, NY, Industrial Development Agency, Civic Facility Revenue, Jewish Project, 2.3%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 100,000 | 100,000 | ||||||
|
| |||||||
14,890,000 | ||||||||
North Carolina 0.9% |
| |||||||
North Carolina, State Capital Facilities Finance Agency Student Revenue, Housing NCA&T University Foundation Project, Series B, 2.37%*, 5/7/2019, INS: AGC, LOC: PNC Bank NA | 2,575,000 | 2,575,000 |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Exempt Money Fund | | | 13 |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Ohio 6.6% |
| |||||||
Cuyahoga County, OH, Health Care Facilities Revenue, AM McGregor Home Project, 2.38%*, 5/7/2019, LOC: Northern Trust Company | 12,400,000 | 12,400,000 | ||||||
Franklin County, OH, Trinity Health Credit Group, 1.7%**, 12/1/2046 | 5,000,000 | 5,000,000 | ||||||
Hamilton County, OH, Economic Development Revenue, St Xavier High School Project, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 1,695,000 | 1,695,000 | ||||||
|
| |||||||
19,095,000 | ||||||||
Oklahoma 1.3% |
| |||||||
Oklahoma, Tender Option Bond Trust Floaters, | 3,750,000 | 3,750,000 | ||||||
Pennsylvania 4.4% |
| |||||||
Butler County, PA, General Authority Revenue, School District Project, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 1,500,000 | 1,500,000 | ||||||
Lancaster, PA, Industrial Development Authority, Willow Valley Retirement, Series C, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 2,500,000 | 2,500,000 | ||||||
Pennsylvania, State Economic Development Financing Authority Revenue, Hawley Silk Mill LLC, Recovery Zone Facility, Series A1, 2.39%*, 5/7/2019, LOC: PNC Bank NA | 300,000 | 300,000 | ||||||
Pennsylvania, Tender Option Bond Trust,Series 2019-ZF2779, 2.33%*, 5/7/2019, LIQ: Barclays Bank PLC | 1,500,000 | 1,500,000 | ||||||
Philadelphia, PA, Airport Revenue, SeriesB-2, TECP, 1.72%, 5/31/2019 | 7,000,000 | 7,000,000 | ||||||
|
| |||||||
12,800,000 | ||||||||
Rhode Island 0.2% |
| |||||||
Rhode Island, State Health & Educational Building Corp., Higher Education Facility Revenue, Roger Williams University, Series A, 2.18%*, 5/7/2019, LOC: U.S. Bank NA | 520,000 | 520,000 | ||||||
South Carolina 0.1% |
| |||||||
North Charleston, SC, Certificates of Participation, 2.26%*, 5/7/2019, LOC: Bank of America NA | 355,000 | 355,000 | ||||||
South Dakota 0.7% |
| |||||||
South Dakota, State Health & Educational Facilities Authority, Sioux Valley Hospital & Health: | ||||||||
Series B, 2.15%*, 5/7/2019, LOC: U.S. Bank NA | 425,000 | 425,000 | ||||||
Series C, 2.15%*, 5/7/2019, LOC: U.S. Bank NA | 1,485,000 | 1,485,000 | ||||||
|
| |||||||
1,910,000 |
The accompanying notes are an integral part of the financial statements.
14 | | | DWS Tax-Exempt Money Fund |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Tennessee 0.3% |
| |||||||
Loudon, TN, Industrial Development Board, Pollution Control Revenue, 2.4%*, 5/7/2019, LOC: Citibank NA | 300,000 | 300,000 | ||||||
Shelby County, TN, Health Educational & Housing Facilities Board, Multi-Family Housing Revenue, 2.4%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 600,000 | 600,000 | ||||||
|
| |||||||
900,000 | ||||||||
Texas 7.7% |
| |||||||
Austin, TX, Water & Wastewater Systems Revenue, 2.32%*, 5/7/2019, LOC: Barclays Bank PLC | 2,225,000 | 2,225,000 | ||||||
Harris County, TX, Houston Port Authority: |
| |||||||
1.66%, 5/16/2019 | 3,600,000 | 3,600,000 | ||||||
1.74%, 6/6/2019 | 205,000 | 205,000 | ||||||
1.8%, 6/6/2019 | 5,500,000 | 5,500,000 | ||||||
Houston, TX, Utility Systems Revenue, First Lien,Series B-5, 2.32%*, 5/7/2019, LOC: Wells Fargo Bank NA | 590,000 | 590,000 | ||||||
Houston, TX, General Obligation Notes, SeriesE-1, TECP, 1.71%, 6/25/2019 | 2,000,000 | 2,000,000 | ||||||
Tarrant County, TX, Cultural Educational Facilities Finance Corp. Revenue, Christus Health Obligated Group,Series C-2, 2.4%*, 5/7/2019, LOC: Bank of NY Mellon | 850,000 | 850,000 | ||||||
Tarrant County, TX, Housing Finance Corp., Multifamily Housing Gateway Apartments, 2.4%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 375,000 | 375,000 | ||||||
Texas, State Variable Veternas: |
| |||||||
Series B, 2.15%*, 5/7/2019, SPA: Federal Home Loan Bank | 490,000 | 490,000 | ||||||
Series C, 2.44%*, 5/7/2019, SPA: Landesbank Hessen-Thuringen | 445,000 | 445,000 | ||||||
Texas, Tender Option Bond Trust Receipts,Series 2015-XF2201, 144A, 2.33%*, 5/7/2019, LIQ: Citibank NA | 3,100,000 | 3,100,000 | ||||||
Texas State, Tax & Revenue Anticipation Notes, 4.0%, 8/29/2019 | 3,000,000 | 3,019,647 | ||||||
|
| |||||||
22,399,647 | ||||||||
Vermont 0.1% |
| |||||||
Vermont, State Educational & Health Buildings Financing Agency Revenue, Hospital Fletcher Allen, Series A, 2.39%*, 5/7/2019, LOC: TD Bank North NA | 400,000 | 400,000 | ||||||
Virginia 0.4% |
| |||||||
Loudoun County, VA, Industrial Development Authority Revenue, Jack Kent Cooke Foundation Project, 2.3%*, 5/7/2019, LOC: Northern Trust Company | 650,000 | 650,000 |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Exempt Money Fund | | | 15 |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Salem, VA, Industrial Development Authority, Multi-Family Housing Revenue, Oak Park Apartments Project, 2.3%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 535,000 | 535,000 | ||||||
|
| |||||||
1,185,000 | ||||||||
Washington 0.8% |
| |||||||
King County, WA, Sewer Revenue, Junior Lien, Series A, 2.4%*, 5/7/2019, LOC: Landesbank Hessen-Thuringen | 530,000 | 530,000 | ||||||
Olympia, WA, Economic Development Corp., Spring Air Northwest Project, AMT, 2.38%*, 5/7/2019, LOC: U.S. Bank NA | 960,000 | 960,000 | ||||||
Washington, State Housing Finance Commission, Panorma City Project, 2.4%*, 5/7/2019, LOC: Wells Fargo Bank NA | 490,000 | 490,000 | ||||||
Washington, State Housing Finance Commission, Vintage of Central Airports Project, 2.42%*, 5/7/2019, LIQ: Freddie Mac, LOC: Freddie Mac | 325,000 | 325,000 | ||||||
|
| |||||||
2,305,000 | ||||||||
Wisconsin 3.9% |
| |||||||
Wisconsin, Whitewater Community Development Authority, Housing Preservation, 2.31%*, 5/7/2019, LOC: BMO Harris Bank NA | 7,455,000 | 7,455,000 | ||||||
Wisconsin, State General Obligation,Series 05-A, TECP, 1.77%, 6/6/2019 | 1,800,000 | 1,800,000 | ||||||
Wisconsin, State Health & Education Facilities Authority, Ascension Health Alliance Senor Group,Series B-2, 4.0%*, 11/15/2043 | 1,545,000 | 1,547,870 | ||||||
Wisconsin, State Health & Educational Facilities Authority Revenue, Mequon Jewish Project, 2.4%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 475,000 | 475,000 | ||||||
|
| |||||||
11,277,870 | ||||||||
Other 2.6% |
| |||||||
Federal Home Loan Mortgage Corp., Multi-Family Variable Rate Certificates: | ||||||||
“A”, Series MO27, 2.32%*, 5/7/2019, LIQ: Freddie Mac | 2,815,000 | 2,815,000 | ||||||
“A”, Series M031, 2.33%*, 5/7/2019, LIQ: Freddie Mac | 2,960,000 | 2,960,000 | ||||||
Series M033, 2.33%*, 5/7/2019, LIQ: Freddie Mac | 815,000 | 815,000 | ||||||
“A”, Series M015, AMT, 2.35%*, 5/7/2019 , LIQ: Freddie Mac | 1,065,000 | 1,065,000 | ||||||
|
| |||||||
7,655,000 | ||||||||
Total Municipal Investments(Cost $276,264,630) |
| 276,264,630 |
The accompanying notes are an integral part of the financial statements.
16 | | | DWS Tax-Exempt Money Fund |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Preferred Shares ofClosed-End Investment Companies 4.8% |
| |||||||
California |
| |||||||
California, Nuveen Dividend Advantage Municipal Fund, Series1-1362, 144A, AMT, 2.43%*, 5/7/2019, LIQ: Societe Generale | 9,000,000 | 9,000,000 | ||||||
California, Nuveen Dividend Advantage Municipal Fund, Series 6, 144A, AMT, 2.43%*, 5/7/2019, LIQ: Citibank NA | 1,500,000 | 1,500,000 | ||||||
California, Nuveen Quality Municipal Income Fund, Series 7, 144A, AMT, 2.44%*, 5/7/2019, LIQ: Royal Bank of Canada | 3,500,000 | 3,500,000 | ||||||
| ||||||||
Total Preferred Shares ofClosed-End Investment Companies(Cost $14,000,000) |
| 14,000,000 | ||||||
% of Net Assets | Value ($) | |||||||
Total Investment Portfolio(Cost $290,264,630) | 99.6 | 290,264,630 | ||||||
Other Assets and Liabilities, Net | 0.4 | 1,284,563 | ||||||
| ||||||||
Net Assets | 100.0 | 291,549,193 |
* | Variable rate demand notes and variable rate demand preferred shares are securities whose interest rates are reset periodically (usually daily mode or weekly mode) by remarketing agents based on current market levels, and are not directly set as a fixed spread to a reference rate. These securities may be redeemed at par by the holder at any time, and are shown at their current rates as of April 30, 2019. Date shown reflects the earlier of demand date or stated maturity date. |
** | Floating rate security. These securities are shown at their current rate as of April 30, 2019. |
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.
AGC: Assured Guaranty Corp.
AMT: Subject to alternative minimum tax.
GTY: Guaranty Agreement
LIQ: Liquidity Facility
LOC: Letter of Credit
MUNIPSA: SIFMA Municipal Swap Index Yield
SPA: Standby Bond Purchase Agreement
TECP: Tax Exempt Commercial Paper
The accompanying notes are an integral part of the financial statements.
DWS Tax-Exempt Money Fund | | | 17 |
Table of Contents
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Securities held by the Fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Municipal Investments (a) | $ | — | $ | 276,264,630 | $ | — | $ | 276,264,630 | ||||||||
Preferred Shares ofClosed-End Investment Companies | — | 14,000,000 | — | 14,000,000 | ||||||||||||
Total | $ | — | $ | 290,264,630 | $ | — | $ | 290,264,630 |
(a) | See Investment Portfolio for additional detailed categorizations. |
The accompanying notes are an integral part of the financial statements.
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Statement of Assets and Liabilities
as of April 30, 2019 | ||||
Assets | | DWS Tax-Exempt Portfolio | ||
Investments in securities, valued at amortized cost | $ | 290,264,630 | ||
Cash | 17,977 | |||
Receivable for investments sold | 200,000 | |||
Receivable for Fund shares sold | 186,784 | |||
Interest receivable | 1,254,804 | |||
Other assets | 58,489 | |||
Total assets | 291,982,684 | |||
Liabilities | ||||
Payable for Fund shares redeemed | 158,192 | |||
Distributions payable | 59,128 | |||
Accrued Trustees’ fees | 4,011 | |||
Other accrued expenses and payables | 212,160 | |||
Total liabilities | 433,491 | |||
Net assets, at value | $ | 291,549,193 | ||
Net Assets Consist of | ||||
Distributable earnings (loss) | (50,568 | ) | ||
Paid-in capital | 291,599,761 | |||
Net assets, at value | $ | 291,549,193 |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Exempt Money Fund | | | 19 |
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Statement of Assets and Liabilitiesas of April 30, 2019 (continued) |
Net Asset Value | | DWS Tax-Exempt Portfolio | | |
DWSTax-Exempt Cash Premier Shares | ||||
Net Asset Value, offering and redemption price per share ($49,478,536 ÷ 49,454,148 outstanding shares of beneficial interest, | $ | 1.00 | ||
DWSTax-Exempt Money Fund | ||||
Net Asset Value, offering and redemption price per share ($124,352,933 ÷ 124,291,658 outstanding shares of beneficial interest, | $ | 1.00 | ||
DWSTax-Free Money Fund Class S | ||||
Net Asset Value, offering and redemption price per share ($51,658,888 ÷ 51,633,423 outstanding shares of beneficial interest, | $ | 1.00 | ||
Service Shares | ||||
Net Asset Value, offering and redemption price per share ($13,841,671 ÷ 13,834,843 outstanding shares of beneficial interest, | $ | 1.00 | ||
Tax-Exempt Cash Managed Shares | ||||
Net Asset Value, offering and redemption price per share ($45,759,204 ÷ 45,736,619 outstanding shares of beneficial interest, | $ | 1.00 | ||
Tax-Free Investment Class | ||||
Net Asset Value, offering and redemption price per share ($6,457,961 ÷ 6,454,777 outstanding shares of beneficial interest, | $ | 1.00 |
The accompanying notes are an integral part of the financial statements.
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for the year ended April 30, 2019 |
| |||
Investment Income | | DWS Tax-Exempt Portfolio | | |
Income: | ||||
Interest | $ | 4,696,916 | ||
Expenses: | ||||
Management fee | 231,341 | |||
Administration fee | 303,403 | |||
Services to shareholders | 218,706 | |||
Distribution and service fees | 260,297 | |||
Custodian fee | 11,040 | |||
Professional fees | 119,852 | |||
Reports to shareholders | 114,292 | |||
Registration fees | 123,397 | |||
Trustees’ fees and expenses | 14,414 | |||
Other | 68,666 | |||
Total expenses before expense reductions | 1,465,408 | |||
Expense reductions | (447,709 | ) | ||
Total expenses after expense reductions | 1,017,699 | |||
Net investment income | 3,679,217 | |||
Net realized gain (loss) from investments | 16,792 | |||
Net increase (decrease) in net assets resulting from operations | $ | 3,696,009 |
The accompanying notes are an integral part of the financial statements.
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Statements of Changes in Net Assets
DWSTax-Exempt Portfolio | ||||||||
Years Ended April 30, | ||||||||
Increase (Decrease) in Net Assets | 2019 | 2018 | ||||||
Operations: | ||||||||
Net investment income | $ | 3,679,217 | $ | 2,423,950 | ||||
Net realized gain (loss) | 16,792 | 2,158 | ||||||
Net increase in net assets resulting from operations | 3,696,009 | 2,426,108 | ||||||
Distributions to shareholders: | ||||||||
DWSTax-Exempt Cash Premier Shares | (554,487 | ) | (430,286 | ) | ||||
DWSTax-Exempt Money Fund | (1,689,303 | ) | (1,163,840 | ) | ||||
DWSTax-Free Money Fund Class S | (640,705 | ) | (413,013 | ) | ||||
Service Shares | (115,693 | ) | (36,384 | ) | ||||
Tax-Exempt Cash Managed Shares | (607,973 | ) | (364,721 | ) | ||||
Tax-Free Investment Class | (58,355 | ) | (28,399 | ) | ||||
Total distributions | (3,666,516 | ) | (2,436,643 | )* | ||||
Fund share transactions: | ||||||||
Proceeds from shares sold | 459,762,725 | 550,268,409 | ||||||
Reinvestment of distributions | 2,971,761 | 1,998,663 | ||||||
Payments for shares redeemed | (485,955,370 | ) | (576,644,724 | ) | ||||
Net increase (decrease) in net assets from Fund share transactions | (23,220,884 | ) | (24,377,652 | ) | ||||
Increase (decrease) in net assets | (23,191,391 | ) | (24,388,187 | ) | ||||
Net assets at beginning of period | 314,740,584 | 339,128,771 | ||||||
Net assets at end of period | $ | 291,549,193 | $ | 314,740,584 | ** |
* | Includes distributions from net investment income. |
** | Includes distributions in excess of net investment income of $47,775 |
The accompanying notes are an integral part of the financial statements.
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DWSTax-Exempt Portfolio
DWSTax-Exempt Money Fund
Years Ended April 30, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Selected Per Share Data |
| |||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Income (loss) from investment operations: |
| |||||||||||||||||||
Net investment income | .013 | .008 | .005 | .000 | * | .000 | * | |||||||||||||
Net realized gain (loss) | .000 | * | .000 | * | (.000 | )* | .000 | * | .000 | * | ||||||||||
Total from investment operations | .013 | .008 | .005 | .000 | * | .000 | * | |||||||||||||
Less distributions from: |
| |||||||||||||||||||
Net investment income | (.013 | ) | (.008 | ) | (.005 | ) | (.000 | )* | (.000 | )* | ||||||||||
Net realized gains | — | — | (.000 | )* | (.000 | )* | (.000 | )* | ||||||||||||
Total distributions | (.013 | ) | (.008 | ) | (.005 | ) | (.000 | )* | (.000 | )* | ||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Total Return (%)a | 1.34 | .83 | .50 | .04 | .03 | |||||||||||||||
Ratios to Average Net Assets and Supplemental Data |
| |||||||||||||||||||
Net assets, end of period ($ millions) | 124 | 136 | 143 | 171 | 176 | |||||||||||||||
Ratio of expenses before expense reductions (%) | .38 | .33 | .30 | .26 | .24 | |||||||||||||||
Ratio of expenses after expense reductions (%) | .22 | .23 | .25 | .12 | .10 | |||||||||||||||
Ratio of net investment income (%) | 1.33 | .82 | .41 | .03 | .01 |
a | Total return would have been lower had certain expenses not been reduced. |
* | Amount is less than $.0005. |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Exempt Money Fund | | | 23 |
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Notes to Financial Statements |
A. 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 anopen-end management investment company organized as a Massachusetts business trust.
The Trust offers two funds: DWS Government & Agency Securities Portfolio (formerly Deutsche Government & Agency Securities Portfolio) and DWSTax-Exempt Portfolio (formerly Deutsche Tax-Exempt Portfolio). These financial statements report on DWSTax-Exempt Portfolio (the “Fund”).
DWSTax-Exempt Portfolio offers six classes of shares: DWSTax-Exempt Cash Premier Shares (formerly Deutsche Tax-Exempt Cash Premier Shares), DWSTax-Exempt Money Fund (formerly Deutsche Tax-Exempt Money Fund), DWSTax-Free Money Fund Class S (formerly Deutsche Tax-Free Money Fund Class S), Service Shares,Tax-Exempt Cash Managed Shares andTax-Free Investment Class.
The financial highlights for all classes of shares, other than DWSTax-Exempt Money Fund, are provided separately and are available upon request.
The Fund’s investment income, realized gains and losses, and certain Fund-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares of the Fund, 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.
The Fund’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which require the use of management estimates. Actual results could differ from those estimates. The Fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of U.S. GAAP. The policies described below are followed consistently by the Fund in the preparation of its financial statements.
In October 2018, the Securities and Exchange Commission adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification, which is intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information
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provided to investors. Effective with the current reporting period, the Fund adopted the amendments with the impacts being that the Fund is no longer required to present components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributable earnings and the amount of undistributed net investment income on the Statements of Changes in Net Assets.
Security Valuation. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The Fund values all securities utilizing the amortized cost method permitted in accordance with Rule2a-7 under the 1940 Act and certain conditions therein. Under this method, which does not take into account unrealized capital gains or losses on securities, an instrument is initially valued at its cost and thereafter assumes a constant accretion/amortization rate to maturity of any discount or premium. Securities held by the Fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
Disclosure about the classification of fair value measurements is included in a table following the Fund’s Investment Portfolio.
Federal Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies and to distribute all of its taxable andtax-exempt income to its shareholders.
At April 30, 2019, the Fund had a net tax basis capital loss carryforward of approximately $15,000, which may be applied against any realized net taxable capital gains indefinitely.
The Fund has reviewed the tax positions for the open tax years as of April 30, 2019 and has determined that no provision for income tax and/or uncertain tax positions is required in the Fund’s financial statements. The Fund’s federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service.
Distribution of Income. Net investment income of the Fund is declared as a daily dividend and is distributed to shareholders monthly. The Fund may take into account capital gains and losses in its daily dividend declarations. The Fund may also make additional distributions for tax purposes if necessary.
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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 nobook-to-tax differences for the Fund.
At April 30, 2019, the Fund’s components of distributable earnings (accumulated losses) on a tax basis are as follows:
DWSTax-Exempt Portfolio: | ||||
Undistributed tax-exempt income | $ | 24,054 | ||
Capital loss carryforwards | $ | (15,000 | ) |
At April 30, 2019, DWSTax-Exempt Portfolio had an aggregate cost of investments for federal income tax purposes of $290,264,630.
In addition, the tax character of distributions paid to shareholders by the Fund is summarized as follows:
Years Ended April 30, | ||||||||
Portfolio | 2019 | 2018 | ||||||
DWSTax-Exempt Portfolio: | ||||||||
Distributions fromtax-exempt income | $ | 3,666,516 | $ | 2,436,643 |
Expenses. Expenses of the Trust arising in connection with a specific Fund are allocated to that Fund. Other Trust expenses which cannot be directly attributed to a Fund are apportioned pro rata on the basis of relative net assets among the funds in the Trust.
Contingencies. In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.
Other. Investment transactions are accounted for on trade date. Interest income is recorded on the accrual basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. All discounts and premiums are accreted/amortized for both tax and financial reporting purposes.
B. Related Parties
Management Agreement. Under an Amended and Restated Investment Management Agreement with DWS Investment Management Americas, Inc. (formerly Deutsche Investment Management Americas Inc.) (“DIMA” or the “Advisor”), an indirect, wholly owned subsidiary of DWS Group GmbH & Co. KGaA (“DWS Group”), the Advisor directs the investments
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of the Fund in accordance with its investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Fund.
The monthly management fee for the Fund is computed based on the combined average daily net assets of the two funds of the Trust and allocated to the Fund based on its relative net assets, computed and accrued daily and payable monthly, at the following annual rates:
First $500 million of the Funds’ 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% |
Accordingly, for the year ended April 30, 2019, the fee pursuant to the Investment Management Agreement on DWS Tax-Exempt Portfolio was equivalent to an annual rate (exclusive of any applicable waivers/reimbursements) of 0.08% of the Fund’s average daily net assets.
For the period from May 1, 2018 through September 30, 2019, the Advisor has contractually agreed to waive its fees and/or reimburse certain operating expenses of the DWSTax-Exempt Money Fund to the extent necessary to maintain the total annual operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest) at 0.40%.
In addition, the Advisor has agreed to voluntarily waive additional expenses. The voluntary waiver may be changed or terminated at any time without notice. Under these arrangements, the Advisor waived certain expenses on DWSTax-Exempt Money Fund.
In addition, the Advisor has also agreed to maintain expenses of certain other classes of the Trust. These rates are disclosed in the respective share classes’ annual reports that are provided separately and are available upon request.
For the year ended April 30, 2019, fees waived and/or expenses reimbursed for each class are as follows:
DWS Tax-Exempt Cash Premier Shares | $ | 57,460 | ||
DWS Tax-Exempt Money Fund | 202,120 | |||
DWS Tax-Free Money Fund Class S | 68,543 | |||
Service Shares | 35,522 | |||
Tax-Exempt Cash Managed Shares | 75,471 | |||
Tax-Free Investment Class | 8,593 | |||
$ | 447,709 |
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Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays the Advisor an annual fee (“Administration Fee”) of 0.10% of the Fund’s average daily net assets, computed and accrued daily and payable monthly. For the year ended April 30, 2019, the Administration Fee was as follows:
Fund | Administration Fee | Unpaid at April 30, 2019 | ||||||
DWSTax-Exempt Portfolio | $ | 303,403 | $ | 23,594 |
Service Provider Fees. DWS Service Company (“DSC”), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent for the Fund. Pursuant to asub-transfer agency agreement between DSC and DST Systems, Inc. (“DST”), DSC has delegated certain transfer agent, dividend-paying agent and shareholder service agent functions to DST. DSC compensates DST out of the shareholder servicing fee it receives from the Fund. For the year ended April 30, 2019, the amounts charged to the Fund by DSC were as follows:
DWSTax-Exempt Portfolio: | Total Aggregated | Unpaid at April 30, 2019 | ||||||
DWSTax-Exempt Cash Premier Shares | $ | 2,663 | $ | 690 | ||||
DWSTax-Exempt Money Fund | 36,405 | 6,015 | ||||||
DWSTax-Free Money Fund Class S | 29,938 | 4,955 | ||||||
Service Shares | 67,885 | 4,268 | ||||||
Tax-Exempt Cash Managed Shares | 31,160 | 3,758 | ||||||
Tax-Free Investment Class | 5,004 | 859 | ||||||
$ | 173,055 | $ | 20,545 |
In addition, for the year ended April 30, 2019, the amounts charged to the Fund for recordkeeping and other administrative services provided by unaffiliated third parties, included in the Statement of Operations under “Services to shareholders,” were as follows:
Sub-Recordkeeping | Total Aggregated | |||
DWS Tax-Exempt Money Fund | $ | 18,316 | ||
DWS Tax-Free Money Fund Class S | 978 | |||
$ | 19,294 |
Distribution Service Agreement. Under the Distribution Service Agreement, in accordance with Rule12b-1 under the 1940 Act, DWS Distributors, Inc. (“DDI”), 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.
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For the year ended April 30, 2019, the Distribution Fee was as follows:
DWS Tax-Exempt Portfolio: | Distribution Fee | Unpaid at April 30, 2019 | Annual Rate | Contractual Rate | ||||||||||||
Service Shares | $ | 161,991 | $ | 6,880 | .60 | % | .60 | % | ||||||||
Tax-Free Investment Class | 15,245 | 1,357 | .25 | % | .25 | % | ||||||||||
$ | 177,236 | $ | 8,237 |
In addition, DDI 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 Rule12b-1 plan.
For the year ended April 30, 2019, the Service Fee was as follows:
DWSTax-Exempt Portfolio: | Service Fee | Unpaid at April 30, 2019 | Annual Rate | Contractual Rate | ||||||||||||
Tax-Exempt Cash Managed Shares | $ | 78,792 | $ | 5,641 | .15 | % | .15 | % | ||||||||
Tax-Free Investment Class | 4,269 | 380 | .07 | % | .07 | % | ||||||||||
$ | 83,061 | $ | 6,021 |
Typesetting and Filing Service Fees. Under an agreement with the Fund, DIMA is compensated for providing certainpre-press and regulatory filing services to the Fund. For the year ended April 30, 2019, the amount charged to the Fund by DIMA included in the Statement of Operations under “Reports to shareholders” was as follows:
Fund | Total Aggregated | Unpaid at April 30, 2019 | ||||||
DWSTax-Exempt Portfolio | $ | 47,887 | $ | 21,973 |
Trustees’ Fees and Expenses. The Fund paid retainer fees to each Trustee not affiliated with the Advisor, plus specified amounts to the Board Chairperson and to each committee Chairperson.
Transactions with Affiliates. The Fund may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is solely due to having a common investment adviser, common officers, or common trustees. During the year ended April 30, 2019, the Fund engaged in securities purchases of $422,475,000 and securities sales of $564,985,000 with an affiliated fund in compliance with Rule17a-7 under the 1940 Act.
C. Line of Credit
The Fund and other affiliated funds (the “Participants”) share in a $400 million revolving credit facility provided by a syndication of banks. The Fund may borrow for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the
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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 theone-month LIBOR exceeds the Federal Funds Rate, the amount of such excess. The Fund may borrow up to a maximum of 33 percent of its net assets under the agreement. The Fund had no outstanding loans at April 30, 2019.
D. Fund Share Transactions
The following table summarizes share and dollar activity in the Fund:
Year Ended April 30, 2019 | Year Ended April 30, 2018 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Shares sold | ||||||||||||||||
DWSTax-Exempt Cash Premier Shares | 62,299,935 | $ | 62,299,935 | 67,725,230 | $ | 67,725,230 | ||||||||||
DWSTax-Exempt Money Fund | 34,172,341 | 34,172,341 | 51,423,925 | 51,423,925 | ||||||||||||
DWSTax-Free Money Fund Class S | 11,153,741 | 11,153,741 | 13,879,488 | 13,879,488 | ||||||||||||
Service Shares | 53,988,330 | 53,988,330 | 81,813,513 | 81,813,513 | ||||||||||||
Tax-Exempt Cash Managed Shares | 286,624,984 | 286,624,984 | 326,154,215 | 326,154,215 | ||||||||||||
Tax-Free Investment Class | 11,523,394 | 11,523,394 | 9,272,138 | 9,272,138 | ||||||||||||
Account Maintenance Fees | — | — | — | (100 | ) | |||||||||||
$ | 459,762,725 | $ | 550,268,409 | |||||||||||||
Shares issued to shareholders in reinvestment of distributions |
| |||||||||||||||
DWSTax-Exempt Cash Premier Shares | 537,230 | $ | 537,230 | 394,754 | $ | 394,754 | ||||||||||
DWSTax-Exempt Money Fund | 1,659,886 | 1,659,886 | 1,145,507 | 1,145,507 | ||||||||||||
DWSTax-Free Money Fund Class S | 607,214 | 607,214 | 392,467 | 392,467 | ||||||||||||
Service Shares | 108,406 | 108,406 | 36,362 | 36,362 | ||||||||||||
Tax-Exempt Cash Managed Shares | 1,638 | 1,638 | 1,571 | 1,571 | ||||||||||||
Tax-Free Investment Class | 57,387 | 57,387 | 28,002 | 28,002 | ||||||||||||
$ | 2,971,761 | $ | 1,998,663 |
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Year Ended April 30, 2019 | Year Ended April 30, 2018 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Shares redeemed |
| |||||||||||||||
DWSTax-Exempt Cash Premier Shares | (54,454,045 | ) | $ | (54,454,045 | ) | (64,594,618 | ) | $ | (64,594,618 | ) | ||||||
DWSTax-Exempt Money Fund | (47,917,455 | ) | (47,917,455 | ) | (59,547,276 | ) | (59,547,276 | ) | ||||||||
DWSTax-Free Money Fund Class S | (11,058,223 | ) | (11,058,223 | ) | (18,119,437 | ) | (18,119,437 | ) | ||||||||
Service Shares | (82,572,012 | ) | (82,572,012 | ) | (79,236,036 | ) | (79,236,036 | ) | ||||||||
Tax-Exempt Cash Managed Shares | (279,241,365 | ) | (279,241,365 | ) | (342,806,879 | ) | (342,806,879 | ) | ||||||||
Tax-Free Investment Class | (10,712,270 | ) | (10,712,270 | ) | (12,340,478 | ) | (12,340,478 | ) | ||||||||
$ | (485,955,370 | ) | $ | (576,644,724 | ) | |||||||||||
Net increase (decrease) |
| |||||||||||||||
DWSTax-Exempt Cash Premier Shares | 8,383,120 | $ | 8,383,120 | 3,525,366 | $ | 3,525,366 | ||||||||||
DWSTax-Exempt Money Fund | (12,085,228 | ) | (12,085,228 | ) | (6,977,844 | ) | (6,977,844 | ) | ||||||||
DWSTax-Free Money Fund Class S | 702,732 | 702,732 | (3,847,482 | ) | (3,847,482 | ) | ||||||||||
Service Shares | (28,475,276 | ) | (28,475,276 | ) | 2,613,839 | 2,613,839 | ||||||||||
Tax-Exempt Cash Managed Shares | 7,385,257 | 7,385,257 | (16,651,093 | ) | (16,651,093 | ) | ||||||||||
Tax-Free Investment Class | 868,511 | 868,511 | (3,040,338 | ) | (3,040,338 | ) | ||||||||||
Account Maintenance Fees | — | — | — | (100 | ) | |||||||||||
$ | (23,220,884 | ) | $ | (24,377,652 | ) |
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Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Cash Account Trust and Shareholders of DWSTax-Exempt Portfolio:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of DWSTax-Exempt Portfolio (formerly DeutscheTax-Exempt Portfolio) (the “Fund”) (one of the funds constituting Cash Account Trust) (the “Trust”), including the investment portfolio, as of April 30, 2019, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Cash Account Trust) at April 30, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are
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required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2019, by correspondence with the custodian and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies in the DWS family of funds since at least 1979, but we are unable to determine the specific year.
Boston, Massachusetts
June 19, 2019
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Information About Your Fund’s Expenses
As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service(12b-1) fees and other Fund expenses. Examples of transaction costs include account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recentsix-month period, the Fund limited these expenses; had it not done so, expenses would have been higher for DWSTax-Exempt Money Fund. The example in the table is based on an investment of $1,000 invested at the beginning of thesix-month period and held for the entire period (November 1, 2018 to April 30, 2019).
The tables illustrate your Fund’s expenses in two ways:
– | Actual Fund Return.This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
– | Hypothetical 5% Fund Return.This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The “Expenses Paid per $1,000” line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. If these transaction costs had been included, your costs would have been higher.
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Expenses and Value of a $1,000 Investment for the six months ended April 30, 2019 (Unaudited) |
| |||
Actual Fund Return | DWS Tax-Exempt Money Fund | |||
Beginning Account Value 11/1/18 | $ | 1,000.00 | ||
Ending Account Value 4/30/19 | $ | 1,007.30 | ||
Expenses Paid per $1,000* | $ | 1.09 | ||
Hypothetical 5% Fund Return | ||||
Beginning Account Value 11/1/18 | $ | 1,000.00 | ||
Ending Account Value 4/30/19 | $ | 1,023.70 | ||
Expenses Paid per $1,000* | $ | 1.10 |
* | Expenses are equal to the Fund’s annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recentsix-month period), then divided by 365. |
Annualized Expense Ratio | ||||
DWSTax-Exempt Money Fund | .22 | % |
For more information, please refer to the Fund’s prospectus.
For an analysis of the fees associated with an investment in the Fund or similar funds, please refer to tools.finra.org/fund_analyzer/.
Tax Information | (Unaudited) |
Of the dividends paid from net investment income for the taxable year ended April 30, 2019, 100% are designated as exempt interest dividends for federal income tax purposes.
Please consult a tax advisor if you have questions about federal or state income tax laws, or on how to prepare your tax returns. If you have specific questions about your account, please call(800) 728-3337.
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Proxy Voting
The Fund’s policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 are available on our Web site —dws.com/en-us/resources/proxy-voting — or on the SEC’s Web site — sec.gov. To obtain a written copy of the Fund’s policies and procedures without charge, upon request, call us toll free at (800)728-3337.
Portfolio Holdings
Following the Fund’s fiscal first and thirdquarter-end, a complete portfolio holdings listing was filed with the SEC on FormN-Q. Effective from and after the Fund’s first fiscal quarter-end of 2019, Form N-Q is rescinded and will not be filed with the SEC. In addition, each month, information about the Fund and its portfolio holdings is filed with the SEC on FormN-MFP. The SEC delays the public availability of the information filed on FormN-MFP for 60 days after the end of the reporting period included in the filing. These forms will be available on the SEC’s Web site at sec.gov. The Fund’s portfolio holdings are also posted on dws.com as of eachmonth-end. Please see the Fund’s current prospectus for more information.
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Advisory Agreement Board Considerations and Fee Evaluation
The Board of Trustees (hereinafter referred to as the “Board” or “Trustees”) approved the renewal of DWSTax-Exempt Portfolio’s (the “Fund”) investment management agreement (the “Agreement”) with DWS Investment Management Americas, Inc. (“DIMA”) in September 2018.
In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:
– | During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”). |
– | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board’s Contract Committee reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Board. The Board then reviewed the Contract Committee’s findings and recommendations. |
– | The Board also received extensive information throughout the year regarding performance of the Fund. |
– | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
– | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s Rule12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DIMA and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered, generally, that shareholders chose to invest or remain invested in the Fund knowing that DIMA managed the
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Fund. DIMA is part of DWS Group GmbH & Co. KGaA (“DWS Group”). DWS Group is a global asset management business that offers a wide range of investing expertise and resources, including research capabilities in many countries throughout the world. In 2018, approximately 20% of DWS Group’s shares were sold in an initial public offering, with Deutsche Bank AG owning the remaining shares.
As part of the contract review process, the Board carefully considered the fees and expenses of each DWS fund overseen by the Board in light of the fund’s performance. In many cases, this led to the negotiation and implementation of expense caps. As part of these negotiations, the Board indicated that it would consider relaxing these caps in future years following sustained improvements in performance, among other considerations.
While shareholders may focus primarily on fund performance and fees, the Fund’s Board considers these and many other factors, including the quality and integrity of DIMA’s personnel and administrative support services provided by DIMA, such as back-office operations, fund valuations, and compliance policies and procedures.
Nature, Quality and Extent of Services. The Board considered the terms of the Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DIMA provides portfolio management services to the Fund and that, pursuant to a separate administrative services agreement, DIMA provides administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel and the resources made available to such personnel. The Board reviewed the Fund’s performance over short-term and long-term periods and compared those returns to various agreed-upon performance measures, including a peer universe compiled using information supplied by iMoneyNet, an independent fund data service. The Board also noted that it has put into place a process of identifying “Funds in Review” (e.g., funds performing poorly relative to a peer universe), and receives additional reporting from DIMA regarding such funds and, where appropriate, DIMA’s plans to address underperformance. The Board believes this process is an effective manner of identifying and addressing underperforming funds. Based on the information provided, the Board noted that, for theone- and three-year periods ended December 31, 2017, the Fund’s gross performance (DWSTax-Exempt Cash Premier 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).
Fees and Expenses. The Board considered the Fund’s investment management fee schedule, operating expenses and total expense ratios, and comparative information provided by Broadridge Financial Solutions, Inc. (“Broadridge”) and the Fee Consultant regarding investment
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management fee rates paid to other investment advisors by similar funds (1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates paid by the Fund, which include a 0.10% fee paid to DIMA under the Fund’s administrative services agreement, were lower than the median (1st quartile) of the applicable Broadridge peer group (based on Broadridge data provided as of December 31, 2017). Based on Broadridge data provided as of December 31, 2017, the Board noted that the Fund’s total operating expenses (excluding12b-1 fees and/or shareholder administration fees, if applicable) were higher than the median (4th quartile) of the applicable Broadridge expense universe (less any applicable12b-1 fees) for the following share classes: Service Shares, DWSTax-Exempt Cash Premier Shares, Tax Free Investment Class shares,Tax-Exempt Cash Managed Shares, DWSTax-Exempt Money Fund shares and DWSTax-Free Money Fund Class S shares. The Board noted the expense limitations agreed to by DIMA. The Board also noted the voluntary fee waivers implemented by DIMA prior to December 31, 2017 to ensure the Fund maintained a positive yield. The Board considered the Fund’s management fee rate as compared to fees charged by DIMA to comparable DWS U.S. registered funds (“DWS Funds”), noting that DIMA indicated that it does not provide services to any other comparable DWS Funds. The information requested by the Board as part of its review of fees and expenses also included information about institutional accounts (including anysub-advised funds and accounts) and funds offered primarily to European investors (“DWS Europe Funds”) managed by DWS Group. The Board noted that DIMA indicated that DWS Group does not manage any institutional accounts or DWS Europe Funds comparable to the Fund.
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DIMA.
Profitability. The Board reviewed detailed information regarding revenues received by DIMA under the Agreement. The Board considered the estimated costs to DIMA, andpre-tax profits realized by DIMA, from advising the DWS Funds, as well as estimates of thepre-tax profits attributable to managing the Fund in particular. The Board also received information regarding the estimated enterprise-wide profitability of DIMA and its affiliates with respect to all fund services in totality and by fund. The Board and the Fee Consultant reviewed DIMA’s methodology in allocating its costs to the management of the Fund. Based on the information provided, the Board concluded that thepre-tax profits realized by DIMA in connection with the management of the Fund were not unreasonable. The Board also reviewed certain publicly available information regarding the profitability of certain similar investment
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management firms. The Board noted that, while information regarding the profitability of such firms is limited (and in some cases is not necessarily prepared on a comparable basis), DIMA and its affiliates’ overall profitability with respect to the DWS Funds (after taking into account distribution and other services provided to the funds by DIMA and its affiliates) was lower than the overall profitability levels of most comparable firms for which such data was available.
Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Fund and whether the Fund benefits from any economies of scale. The Board noted that the Fund’s investment management fee schedule includes fee breakpoints. The Board concluded that the Fund’s fee schedule represents an appropriate sharing between the Fund and DIMA of such economies of scale as may exist in the management of the Fund at current asset levels.
Other Benefits to DIMA and Its Affiliates. The Board also considered the character and amount of other incidental or“fall-out” benefits received by DIMA and its affiliates, including any fees received by DIMA for administrative services provided to the Fund, any fees received by an affiliate of DIMA for transfer agency services provided to the Fund and any fees received by an affiliate of DIMA for distribution services. The Board also considered benefits to DIMA related to brokerage and soft-dollar allocations, including allocating brokerage to pay for research generated by parties other than the executing broker dealers, which pertain primarily to funds investing in equity securities. In addition, the Board considered the incidental public relations benefits to DIMA related to DWS Funds advertising and cross-selling opportunities among DIMA products and services. The Board considered these benefits in reaching its conclusion that the Fund’s management fees were reasonable.
Compliance. The Board considered the significant attention and resources dedicated by DIMA to its compliance processes in recent years. The Board noted in particular (i) the experience, seniority and time commitment of the individuals serving as DIMA’s and the Fund’s chief compliance officers and (ii) the substantial commitment of resources by DIMA and its affiliates to compliance matters, including the retention of compliance personnel.
Based on all of the information considered and the conclusions reached, the Board unanimously determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Trustees and counsel present. It is possible that individual Independent Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.
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The following table presents certain information regarding the Board Members and Officers of the Fund. Each Board Member’s year of birth is set forth in parentheses after his or her name. Unless otherwise noted, (i) each Board Member has engaged in the principal occupation(s) noted in the table for at least the most recent five years, although not necessarily in the same capacity; and (ii) the address of each Independent Board Member is c/o Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA02199-3600. Except as otherwise noted below, the term of office for each Board Member is until the election and qualification of a successor, or until such Board Member sooner dies, resigns, is removed or as otherwise provided in the governing documents of the Fund. Because the Fund does not hold an annual meeting of shareholders, each Board Member will hold office for an indeterminate period. The Board Members may also serve in similar capacities with other funds in the fund complex.
Independent Board Members | ||||||||
Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
Keith R. Fox, CFA (1954)
Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods importer and distributor); The Kennel Shop (retailer); former Chairman, National Association of Small Business Investment Companies; former Directorships: BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) (2011–2012) | 82 | — | |||||
John W. Ballantine (1946)
Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population well-being and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc. and Oak Brook Bank; Prisma Energy International; Public Radio International. Not-for-Profit Director/Trustee: Palm Beach Civic Association; Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago | 82 | Portland General Electric2 (utility company) (2003– present) |
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Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
Henry P. Becton, Jr. (1943)
Board Member since 1990 | Vice Chair and former President, WGBH Educational Foundation. Directorships: Public Radio International; Public Radio Exchange (PRX); The Pew Charitable Trusts (charitable organization); Massachusetts Humane Society; Overseer of the New England Conservatory; former Directorships: Becton Dickinson and Company2 (medical technology company); Belo Corporation2 (media company); The PBS Foundation; Association of Public Television Stations; Boston Museum of Science; American Public Television; Concord Academy; New England Aquarium; Mass. Corporation for Educational Telecommunications; Committee for Economic Development; Public Broadcasting Service; Connecticut College; North Bennett Street School (Boston); American Documentary, Inc. (public media) | 82 | — | |||||
Dawn-Marie Driscoll (1946)
Board Member since 1987 | Emeritus Executive Fellow, Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988). Directorships: Advisory Board, Center for Business Ethics, Bentley University; Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 82 | — | |||||
Richard J. Herring (1946)
Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); Director, The Wharton Financial Institutions Center (since 1994); formerly: Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Formerly Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), and Nonexecutive Director of Barclays Bank DE (2010–2018) | 82 | Director, Aberdeen Japan Fund (since 2007) |
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Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
William McClayton (1944)
Board Member since 2004 | Private equity investor (since October 2009); previously, Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001–2009); Directorship: Board of Managers, YMCA of Metropolitan Chicago; formerly: Senior Partner, Arthur Andersen LLP (accounting) (1966–2001); Trustee, Ravinia Festival | 82 | — | |||||
Rebecca W. Rimel (1951)
Board Member since 1995 | President, Chief Executive Officer and Director, The Pew Charitable Trusts (charitable organization) (1994–present); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012) | 82 | Director, Becton Dickinson and Company2 (medical technology company) (2012– present); Director, BioTelemetry Inc.2(health care) (2009– present) | |||||
William N. Searcy, Jr. (1946)
Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2(telecommunications) (November 1989–September 2003); Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 82 | — | |||||
Jean Gleason Stromberg (1943)
Board Member since 1997 | Retired. Formerly, Consultant (1997–2001); Director, Financial Markets U.S. Government Accountability Office (1996–1997); Partner, Norton Rose Fulbright, L.L.P. (law firm) (1978–1996); former Directorships: The William and Flora Hewlett Foundation (charitable organization) (2000–2015); Service Source, Inc. (nonprofit), Mutual Fund Directors Forum (2002–2004), American Bar Retirement Association (funding vehicle for retirement plans) (1987–1990 and 1994–1996) | 82 | — |
Officers4 | ||
Name, Year of Birth, Position with the Fund and Length of Time Served5 | Business Experience and Directorships During the Past Five Years | |
Hepsen Uzcan6(1974)
President and Chief Executive Officer, 2017–present | Managing Director,3 DWS; Secretary, DWS USA Corporation (since March 2018); Assistant Secretary, DWS Distributors, Inc. (since June 25, 2018); Director and Vice President, DWS Service Company (since June 25, 2018); Assistant Secretary, DWS Investment Management Americas, Inc. (since June 25, 2018); and Director and President, DB Investment Managers, Inc. (since June 25, 2018); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019) |
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Name, Year of Birth, Position with the Fund and Length of Time Served5 | Business Experience and Directorships During the Past Five Years | |
John Millette8(1962)
Vice President and Secretary, 1999–present | Director,3DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); and Director and Vice President, DWS Trust Company (2016–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017) | |
Diane Kenneally8,9(1966)
Chief Financial Officer and Treasurer, since 2018 | Director,3 DWS; formerly: Assistant Treasurer for the DWS funds (2007–2018) | |
Paul Antosca8(1957)
Assistant Treasurer, 2007–present | Director,3DWS | |
Sheila Cadogan8(1966)
Assistant Treasurer, 2017–present | Director,3DWS; Director and Vice President, DWS Trust Company (since 2018) | |
Scott D. Hogan8(1970)
Chief Compliance Officer, 2016–present | Director,3DWS | |
Caroline Pearson8(1962)
Chief Legal Officer, 2010–present | Managing Director,3DWS; formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); and Secretary, Deutsche AM Service Company (2010–2017) | |
Wayne Salit7(1967) Anti-Money Laundering Compliance Officer, 2014–present | Director,3 Deutsche Bank; and AML Officer, DWS Trust Company; formerly: Managing Director, AML Compliance Officer at BNY Mellon (2011–2014); and Director, AML Compliance Officer at Deutsche Bank (2004–2011) | |
Ciara Crawford10 (1984) Assistant Secretary, since February 8, 2019 | Associate, DWS (since 2015); previously, Legal Assistant at Accelerated Tax Solutions. |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Executive title, not a board directorship. |
4 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
5 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
6 | Address: 345 Park Avenue, New York, NY 10154. |
7 | Address: 60 Wall Street, New York, NY 10005. |
8 | Address: One International Place, Boston, MA 02110. |
9 | Appointed Treasurer and Chief Financial Officer effective July 2, 2018. |
10 | Address: 5022 Gate Parkway, Suite 400, Jacksonville, FL 32256. |
The Fund’s Statement of Additional Information (“SAI”) includes additional information about the Board Members. The SAI is available, without charge, upon request. If you would like to request a copy of the SAI, you may do so by calling the followingtoll-free number:(800) 728-3337.
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Notes
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DTEMF-2
(R-027590-8 6/19)
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April 30, 2019
Annual Report
to Shareholders
DWSTax-Exempt Portfolio
(formerly DeutscheTax-Exempt Portfolio)
DWSTax-Free Money Fund Class S
(formerly DeutscheTax-Free Money Fund Class S)
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s Web site (dws.com), and you will be notified by mail each time a report is posted and provided with a Web site link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank), or if you are a direct investor, by calling (800) 728-3337 or sending an email request to service@dws.com.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 728-3337 or send an email request to service@dws.com to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with DWS if you invest directly with the Fund.
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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 dws.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.
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. You should not rely on or expect the Advisor to enter into support agreements or take other actions to maintain the Fund’s $1.00 share price. The credit quality of the Fund’s holdings can change rapidly in certain markets, and the default of a single holding could have an adverse impact on the Fund’s share price. The Fund’s share price can also be negatively affected during periods of high redemption pressures and/or illiquid markets. The actions of a few large investors in one class of shares of the Fund may have a significant adverse effect on the share prices of all classes of shares of the Fund. Please read the prospectus for specific details regarding the Fund’s risk profile.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services.
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
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Portfolio Management Review | (Unaudited) |
Market Overview
All performance information below is historical and does not guarantee future results. Investment return and principal fluctuate, so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit dws.com for the Funds’ most recentmonth-end performance. The7-day current yield refers to the income paid by the Funds over a7-day period expressed as an annual percentage rate of each Fund’s shares outstanding. Yields fluctuate and are not guaranteed.
Over the past 12 months ended April 30, 2019, yields across the money market yield curve fluctuated based on the growing U.S. economy and evolving U.S. Federal Reserve (the Fed) statements and actions. In light of continued economic strength and a tight labor market, the Federal Open Market Committee (FOMC) raised short-term rates at its June 2018 meeting. In September, the Fed once again raised rates, with accompanying statements that at the time were viewed as aggressive regarding the prospects for future rate hikes. In December, a number of factors contributed to a considerable increase in financial market volatility and a tightening in overall financial conditions. These factors included statements by the Fed following its December 2018 rate hike. In December, the Fed’s messaging disappointed market watchers because the central bank did not commit to a pause in its rate hikes, despite signs that growth was slowing in some parts of the global economy. Disappointment in the Fed’s statements during the fourth quarter of 2018 coincided with a major correction in the stock markets, an inverted yield curve (often a predictor of economic recession), a widening of credit spreads, apparent difficulties in trade talks with China, and a U.S. government shutdown.
In January, the short-term rate environment underwent a meaningful change: Responding to the significant financial market disruptions that had taken place in late 2018, the Fed pivoted dramatically, taking all of its rate hike forecasts off the table and changing from a hawkish to a neutral (to some observers, even dovish) monetary policy stance. The Fed not only walked backed its projections of fed funds rate increases, but also lowered its U.S. economic growth estimates. Money market participants took the altered short-term rate expectations even further by “pricing in” a Fed rate cut in early 2020. At the end of the12-month period, the
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market consensus was that in terms of possible short-term rate changes, the Fed would most likely be on hold for the remainder of 2019.
Positive Contributors to Fund Performance
DWSTax-Exempt Portfolio seeks to provide maximum current income that is exempt from federal income taxes to the extent consistent with stability of capital.
For the DWS Tax Exempt Portfolio, we sought to achieve an attractive yield by implementing a strategic balance of short liquidity instruments, as well as longer-term products. With an increase in market volatility, keeping overweight balances in floating-rate VRDNs (Variable Rate Demand Notes) enabled the Fund to purchase fixed-term commercial paper with maturities of 30 to 90 days, providing what we believe to be attractive yield. (The interest rate of variable rate securities adjusts periodically based on indices such as the Securities Industry and Financial Market Association Index of Variable Rate Demand Notes. Because the interest rates of these instruments adjust as market conditions change, they provide flexibility in an uncertain interest rate environment.)
Negative Contributors to Fund Performance
The types of securities that we invested in tended to have lower yields than issues carrying more risk. We preferred to be cautious during a time of market uncertainty. In the end this may have cost the Fund some yield, but we believe that this represented a prudent approach to preserving principal.
Outlook and Positioning
We are cautious regarding current U.S. economic policy, the global geopolitical situation, and the agenda on trade that the administration is pursuing. However, we believe that the economy can continue to expand, though with a possible slowdown later this year or early in 2020. For now we are positioning the Fund for continued growth. With no Fed rate hikes projected in the coming months, we plan to continue our current portfolio strategy until there is a significant shift in the market environment.
We continue our insistence on what we believe to be the highest credit quality within the Fund. We also plan to maintain what we believe to be
4 | | | DWS Tax-Free Money Fund Class S |
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our conservative investment strategies and standards under the current market conditions. We continue to apply what we believe to be a careful approach to investing on behalf of the Fund and to seek competitive yield for our shareholders.
Fund Performance(as of April 30, 2019)
Performance is historical and does not guarantee future results. Current performance may be lower or higher than the performance data quoted.
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
7-Day Current Yield | ||||
DWSTax-Free Money Fund Class S | 1.89%* | |||
Equivalent Taxable Yield | 2.90%** |
Yields are historical, will fluctuate and do not guarantee future performance. The7-day current yield refers to the income paid by the Fund over a7-day period expressed as an annual percentage rate of the Fund’s shares outstanding. For the most current yield information, visit our Web site at dws.com.
* | The 7-Day Current Yield would have been 1.69%, had certain expenses not been reduced. |
** | The equivalent taxable yield allows you to compare with the performance of taxable money market funds. For the DWSTax-Exempt Portfolio, the equivalent taxable yield is based upon the marginal income tax rate of 40.8%. Income may be subject to local taxes and, for some investors, the alternative minimum tax. |
Portfolio Management Team
A group of investment professionals is responsible for theday-to-day management of the Fund. These investment professionals have a broad range of experience managing money market funds.
The views expressed reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The management team’s views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Past performance is no guarantee of future results. Current and future portfolio holdings are subject to risk.
DWS Tax-Free Money Fund Class S | | | 5 |
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Terms to Know
Theyield curve is a graphical representation of how yields on bonds of different maturities compare. Normally, yield curves slant up, as bonds with longer maturities typically offer higher yields than short-term bonds.
Floating-rate securities are debt instruments with floating-rate coupons that generally reset every 30 to 90 days. While floating-rate securities are senior to equity and fixed-income securities, there is no guaranteed return of principal in case of default. Floating-rate issues often have less interest-rate risk than other fixed-income investments. Floating-rate securities are most often secured assets, generally senior to a company’s secured debt, and can be transferred to debt holders, resulting in potential downside risk.
6 | | | DWS Tax-Free Money Fund Class S |
Table of Contents
Portfolio Summary | (Unaudited) |
DWSTax-Exempt Portfolio
Asset Allocation (As a % of Investment Portfolio) | 4/30/19 | 4/30/18 | ||||||
Municipal Investments | ||||||||
Municipal Variable Rate Demand Notes | 62% | 49% | ||||||
Tax-Exempt Commercial Paper | 17% | 17% | ||||||
Municipal Bonds and Notes | 11% | 20% | ||||||
Municipal Floating-Rate Notes | 5% | 5% | ||||||
Preferred Shares ofClosed-End Investment Companies | 5% | 9% | ||||||
100% | 100% | |||||||
Weighted Average Maturity | 4/30/19 | 4/30/18 | ||||||
Cash Account Trust — DWSTax-Exempt Portfolio | 13 days | 26 days | ||||||
NationalTax-Free Retail Money Fund Average* | 19 days | 19 days |
* | The Fund is compared to its respective iMoneyNet Category: NationalTax-Free Retail Money Fund Average — Category consists of all nationaltax-free and municipal retail funds. Portfolio holdings oftax-free funds include Rated and Unrated Demand Notes, Rated and Unrated General Market Notes; Commercial Paper; Put Bonds; AMT Paper and OtherTax-Free Holdings. |
Weighted average maturity, also known as effective maturity, is the weighted average of the maturity date of bonds held by the Fund taking into consideration any available maturity shortening features.
Portfolio holdings and characteristics are subject to change.
For more complete details about the Fund’s holdings, see pages 8–18. A quarterly Fact Sheet is available on dws.com or upon request.
DWS Tax-Free Money Fund Class S | | | 7 |
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Investment Portfolio | as of April 30, 2019 |
Principal Amount ($) | Value ($) | |||||||
Municipal Investments 94.8% | ||||||||
Alabama 0.5% |
| |||||||
Tuscaloosa County, AL, Industrial Development Authority, Gulf Opportunity Zone, Hunt Refining Project, Series I, 144A, 2.33%*, 5/7/2019, LOC: Bank of Nova Scotia | 1,600,000 | 1,600,000 | ||||||
Alaska 0.5% |
| |||||||
Alaska, State Industrial Development & Export Authority Revenue, Series B, 2.3%*, 5/1/2019, LOC: BankTokyo-Mitsubishi UFJ | 1,500,000 | 1,500,000 | ||||||
Arizona 1.5% |
| |||||||
Arizona, State Health Facilities Authority Revenue, Dignity Health, Series A, 2.15%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 215,000 | 215,000 | ||||||
Arizona, State Health Facilities Authority, Banner Health, Series G, 2.42%*, 5/7/2019, LOC: Wells Fargo Bank NA | 285,000 | 285,000 | ||||||
Maricopa County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Sani Angelin Apartments Project, Series A, AMT, 2.5%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 240,000 | 240,000 | ||||||
Maricopa County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Sanitary Clemente Apartments Project, Series A, AMT, 2.45%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 810,000 | 810,000 | ||||||
Maricopa County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Sanitary Fernando Apartments Project, Series A, AMT, 2.45%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 445,000 | 445,000 | ||||||
Pima County, AZ, Industrial Development Authority,Multi-Family Housing Revenue, Eastside PL Apartments, 2.4%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 1,350,000 | 1,350,000 | ||||||
Pima County, AZ, Industrial Development Authority, Series A, 2.4%*, 5/7/2019, LOC: Federal Home Loan Bank | 950,000 | 950,000 | ||||||
|
| |||||||
4,295,000 | ||||||||
Arkansas 3.1% |
| |||||||
Little Rock, AR, Metrocentere Improvement District No.1, Little Rock Newspapers, Inc., 2.3%*, 5/1/2019, LOC: JPMorgan Chase Bank NA | 2,500,000 | 2,500,000 | ||||||
Lowell, AR, Industrial Development Revenue, Little Rock Newspapers Project, AMT, 2.53%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 6,500,000 | 6,500,000 | ||||||
|
| |||||||
9,000,000 |
The accompanying notes are an integral part of the financial statements.
8 | | | DWS Tax-Free Money Fund Class S |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
California 3.3% |
| |||||||
California, Statewide Community Development Authority, SeriesB-5, 1.77%, 8/7/2019 | 6,250,000 | 6,250,000 | ||||||
California, Wells Fargo Stage Trust Various States, Series 94C, 144A, AMT, MUNIPSA + 0.340%, 2.64%**, Mandatory Put 7/24/2019 @ 100, 5/1/2030, GTY: Wells Fargo Bank NA, LIQ: Wells Fargo Bank NA | 2,500,000 | 2,500,000 | ||||||
Los Angeles, CA, Municipal Improvement Corp., SeriesA-1, TECP, 1.66%, 5/30/2019 | 1,000,000 | 1,000,000 | ||||||
|
| |||||||
9,750,000 | ||||||||
Colorado 4.5% |
| |||||||
Colorado, State Education Loan Program, Series A, 5.0%, 6/27/2019 | 12,500,000 | 12,566,113 | ||||||
Colorado, State Housing & Finance Authority, Series I - AA2, 2.45%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 500,000 | 500,000 | ||||||
|
| |||||||
13,066,113 | ||||||||
Connecticut 0.4% |
| |||||||
Connecticut, Tender Option Bond Trust, Series2018-XG0204, | 1,135,000 | 1,135,000 | ||||||
District of Columbia 0.3% |
| |||||||
District of Columbia, Georgetown University Revenue,Series C-1, 2.32%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 420,000 | 420,000 | ||||||
District of Columbia, Metropolitan Airport Authority Systems Revenue, SeriesC-1, AMT, 2.35%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 450,000 | 450,000 | ||||||
|
| |||||||
870,000 | ||||||||
Florida 10.3% |
| |||||||
Gainesville, FL, General Obligation Notes, Series C, TECP, 1.7%, 5/6/2019 | 2,000,000 | 2,000,000 | ||||||
Gainesville, FL, Industrial Development Revenue, Gainesville Hillel, Inc. Project, 2.15%*, 5/7/2019, LOC: Northern Trust Company | 4,150,000 | 4,150,000 | ||||||
Gainesville, FL, General Obligation Notes: | ||||||||
Series C, TECP, 1.69%, 5/2/2019 | 11,000,000 | 11,000,000 | ||||||
Series A, TECP, 1.83%, 6/3/2019 | 5,500,000 | 5,500,000 | ||||||
Miami-dade County, FL, Seaport Revenue, Series A, 2.3%*, 5/7/2019, LOC: PNC Bank NA | 925,000 | 925,000 | ||||||
Palm Beach County, FL, Henry Morrison Flagler Project Revenue, 2.4%*, 5/7/2019, LOC: Northern Trust Company | 1,300,000 | 1,300,000 | ||||||
Sarasota County, FL, State Revenue Planned Parenthood, Inc. Project, 2.4%*, 5/7/2019, LOC: BMO Harris Bank NA | 5,230,000 | 5,230,000 | ||||||
|
| |||||||
30,105,000 |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Free Money Fund Class S | | | 9 |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Georgia 7.2% |
| |||||||
Atlanta City, GA, Second Lien Airport Passanger Facility Charge & Third Lien Airport General Revenue,Series 2016 H-3, TECP, 2.05%, 5/31/2019 | 200,000 | 200,000 | ||||||
Atlanta City, GA, Airport General Revenue, Series 2016H-1, TECP, 2.05%, 5/31/2019 | 230,000 | 230,000 | ||||||
Atlanta City, GA, Second Lien Airport Passanger Facility Charge & Third Lien Airport General Revenue, Series H-3: | ||||||||
TECP, 1.83%, 5/31/2019 | 137,000 | 137,000 | ||||||
TECP, 1.9%, 5/31/2019 | 234,000 | 234,000 | ||||||
City of Atlanta, GA, Airport General Revenue: |
| |||||||
SeriesF-3, TECP, 1.95%, 7/2/2019 | 200,000 | 200,000 | ||||||
Series-F-1, TECP, 1.95%, 7/2/2019 | 200,000 | 200,000 | ||||||
Georgia, General Obligation Notes, Series85-A, TECP, 1.78%, 6/5/2019 | 12,500,000 | 12,500,000 | ||||||
Georgia, Tender Option Bond Trust Receipts,Series 2018-XF0709, 144A, 2.4%*, 5/7/2019, LIQ: JPMorgan Chase Bank NA | 6,800,000 | 6,800,000 | ||||||
Monroe County, GA, Development Authority Pollution Control Revenue, Oglethorpe Power Corp., Series A, 2.34%*, 5/7/2019, LOC: Bank of Montreal | 450,000 | 450,000 | ||||||
|
| |||||||
20,951,000 | ||||||||
Idaho 1.7% |
| |||||||
Idaho, State Health Facilities Authority, Hospital Revenue, Trinity Health Credit Group, Series ID, 1.7%**, 12/1/2048 | 5,000,000 | 5,000,000 | ||||||
Illinois 10.3% |
| |||||||
Channahon, IL, Morris Hospital Revenue, 2.31%*, 5/7/2019, LOC: U.S. Bank NA | 4,005,000 | 4,005,000 | ||||||
Illinois, Educational Facilities Authority, Chicago Zoological Society, Series B, 2.4%*, 5/7/2019, LOC: Northern Trust Company | 3,955,000 | 3,955,000 | ||||||
Illinois, Southwestern Development Authority Solid Waste Disposal Revenue, Waste Management, Inc., Project, AMT, 2.35%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 400,000 | 400,000 | ||||||
Illinois, State Development Finance Authority, Chicago Horticultural, 2.3%*, 5/7/2019, LOC: BMO Harris Bank NA | 2,600,000 | 2,600,000 | ||||||
Illinois, State Development Finance Authority, Ignatius College Project, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 2,000,000 | 2,000,000 | ||||||
Illinois, State Development Finance Authority, Industrial Development Revenue, Series A, AMT, 2.37%*, 5/7/2019, LOC: BMO Harris Bank NA | 565,000 | 565,000 | ||||||
Illinois, State Development Finance Authority, Jewish Council Youth Services, 2.31%*, 5/7/2019, LOC: BMO Harris Bank NA | 1,400,000 | 1,400,000 |
The accompanying notes are an integral part of the financial statements.
10 | | | DWS Tax-Free Money Fund Class S |
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Principal Amount ($) | Value ($) | |||||||
Illinois, State Development Finance Authority, St. Ignatius College Preparatory, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 3,850,000 | 3,850,000 | ||||||
Illinois, State Development Finance Authority, YMCA Metropolitan Chicago Project, 2.15%*, 5/7/2019, LOC: BMO Harris Bank NA | 1,000,000 | 1,000,000 | ||||||
Illinois, State Educational Facilities Authority Revenue, The Adler Planetarium, 2.26%*, 5/7/2019, LOC: PNC Bank NA | 1,100,000 | 1,100,000 | ||||||
Illinois, State Educational Facilities Authority, National Louis University, Series B, 2.3%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 190,000 | 190,000 | ||||||
Illinois, State Finance Authority Revenue, North Park University Project, 2.15%*, 5/7/2019, LOC: U.S. Bank NA | 1,900,000 | 1,900,000 | ||||||
Illinois, State Finance Authority Revenue, Uhlich Children’s Advantage Network, 2.31%*, 5/7/2019, LOC: U.S. Bank NA | 1,885,000 | 1,885,000 | ||||||
Illinois, State Housing Development Authority, Multi-Family Housing Revenue, 2.44%*, 5/7/2019, LIQ: Freddie Mac, LOC: Freddie Mac | 4,325,000 | 4,325,000 | ||||||
University of Illinois: | ||||||||
2.15%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 330,000 | 330,000 | ||||||
2.42%*, 5/7/2019, LOC: Wells Fargo Bank NA | 425,000 | 425,000 | ||||||
|
| |||||||
29,930,000 | ||||||||
Indiana 2.6% |
| |||||||
Elkhart County, IN, Multy-Family Revenue, Ashton Pines Apartments, Series A, 2.35%*, 5/7/2019, LOC: Federal Home Loan Bank | 500,000 | 500,000 | ||||||
Indiana, State Finance Authority, Health Systems Revenue, Sisters of St. Francis Health, Series F, 2.32%*, 5/7/2019, LOC: Bank of NY Mellon | 2,900,000 | 2,900,000 | ||||||
Rockport, IN, Pollution Control Revenue, AEP Generating Co., Series B, 2.42%*, 5/7/2019, LOC: BankTokyo-Mitsubishi UFJ | 4,175,000 | 4,175,000 | ||||||
|
| |||||||
7,575,000 | ||||||||
Iowa 1.1% |
| |||||||
Iowa, State Finance Authority Midwestern Disaster Area Revenue, 2.35%*, 5/7/2019 | 405,000 | 405,000 | ||||||
Iowa, State Finance Authority, Economic Development Revenue, Series A, 2.34%*, 5/7/2019 | 300,000 | 300,000 | ||||||
Iowa, State Finance Authority, Single Family Mortgage Revenue, Mortgage Backed Securities Program: | ||||||||
Series D, 2.34%*, 5/7/2019, SPA: Federal Home Loan Bank | 1,550,000 | 1,550,000 | ||||||
Series E, 2.34%*, 5/7/2019, SPA: Federal Home Loan Bank | 855,000 | 855,000 | ||||||
|
| |||||||
3,110,000 |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Free Money Fund Class S | | | 11 |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Kansas 0.3% |
| |||||||
Olathe, KS, Industrial Revenue, Multi Modal Diamant Boart, Series A, AMT, 2.46%*, 5/7/2019, LOC: Svenska Handelsbanken | 1,000,000 | 1,000,000 | ||||||
Kentucky 0.7% |
| |||||||
Boone County, KY, Pollution Control Revenue, Duke Energy Kentucky, Inc., 2.37%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 300,000 | 300,000 | ||||||
Louisville & Jefferson County, KY, Regional Airport Authority, UPS Worldwide Forwarding, Series C, AMT, 2.34%*, 5/1/2019 | 1,800,000 | 1,800,000 | ||||||
|
| |||||||
2,100,000 | ||||||||
Louisiana 0.2% |
| |||||||
Louisiana, State Housing Finance Agency, Centerbury House Apartments, 2.31%*, 5/7/2019, LOC: Fannie Mae | 550,000 | 550,000 | ||||||
Maryland 0.2% |
| |||||||
Maryland, State Health & Higher Educational Facilities Authority Revenue, Gaudenzia Foundation, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 500,000 | 500,000 | ||||||
Massachusetts 2.1% |
| |||||||
Massachusetts, Tender Option Bond Trust Receipts, Series 2015-XF2203, 144A, 2.32%*, 5/7/2019, LIQ: Citibank NA | 2,300,000 | 2,300,000 | ||||||
Massachusetts, University of Massachusetts, Building Authority Revenue, Series 2, MUNIPSA + 0.300%, 2.6%**, 11/1/2034 | 3,900,000 | 3,900,000 | ||||||
|
| |||||||
6,200,000 | ||||||||
Michigan 1.8% |
| |||||||
Michigan, Kent Hospital Finance Authority Revenue, Spectrum Health System, Series C, 2.4%*, 5/7/2019, LOC: Bank of NY Mellon | 290,000 | 290,000 | ||||||
University of Michigan, General Obligation Notes, SeriesK-1, TECP, 1.83%, 6/3/2019 | 5,000,000 | 5,000,000 | ||||||
|
| |||||||
5,290,000 | ||||||||
Mississippi 3.3% |
| |||||||
Mississippi, State Business Finance Commission, Gulf Opportunity Zone, Chevron U.S.A., Inc.: | ||||||||
Series F, 2.3%*, 5/7/2019, GTY: Chevron Corp. | 50,000 | 50,000 | ||||||
Series A, 2.44%*, 5/7/2019, GTY: Chevron Corp. | 9,505,000 | 9,505,000 | ||||||
Series B, 2.44%*, 5/7/2019, GTY: Chevron Corp. | 200,000 | 200,000 | ||||||
|
| |||||||
9,755,000 |
The accompanying notes are an integral part of the financial statements.
12 | | | DWS Tax-Free Money Fund Class S |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Missouri 1.1% |
| |||||||
Missouri, Tender Option Bond Trust Receipts,Series 2015-XF2198, 144A, 2.33%*, 5/7/2019, LIQ: Citibank NA | 2,660,000 | 2,660,000 | ||||||
St. Louis County, MO, Industrial Development Authority, Educational Whitefield School, Inc., Series B, 2.4%*, 5/7/2019, LOC: U.S. Bank NA | 450,000 | 450,000 | ||||||
|
| |||||||
3,110,000 | ||||||||
Nevada 2.7% |
| |||||||
Clark County, NV, Airport Systems Revenue, SeriesD-1, 2.4%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 6,755,000 | 6,755,000 | ||||||
Nevada, State Housing Division, Sonoma Palms LP, AMT, 2.32%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 1,100,000 | 1,100,000 | ||||||
|
| |||||||
7,855,000 | ||||||||
New York 5.1% |
| |||||||
New York, State Energy Research & Development Authority Facilities Revenue, Consolidated Edison Co., SeriesC-2, AMT, 2.45%*, 5/7/2019, LOC: Mizuho Bank Ltd. | 690,000 | 690,000 | ||||||
New York, State Thruway Authority Revenue,Series 2016-XF2345, 144A, 2.33%*, 5/7/2019, LIQ: Credit Suisse | 1,865,000 | 1,865,000 | ||||||
New York City, NY, Industrial Development Agency, Civic Facility Revenue, Jamaica First Parking LLC Project, 2.32%*, 5/7/2019, LOC: TD Bank NA | 1,185,000 | 1,185,000 | ||||||
New York City, NY, Municipal Finance Authority, Water & Sewer Systems Revenue, SeriesF-2, 2.13%*, 5/7/2019, SPA: JPMorgan Chase Bank NA | 3,470,000 | 3,470,000 | ||||||
New York City, NY, Municipal Water Finance Authority, Water & Sewer Systems Revenue, Second Generation Resolution, SeriesBB-1, 2.38%*, 5/7/2019, SPA: IND & Commercial Bank of China BA | 5,750,000 | 5,750,000 | ||||||
New York City, NY, Transitional Finance Authority Revenue, Future Tax Secured, SeriesA-2A, 2.3%*, 5/2/2019, LOC: Bank Tokyo-Mitsubishi UFJ | 825,000 | 825,000 | ||||||
New York, NY, General Obligation, SeriesJ-6, 2.32%*, 5/1/2019, LOC: Landesbank Hessen-Thuringen | 830,000 | 830,000 | ||||||
New York, NY, State General Obligation, SeriesA-3, 2.31%*, 5/1/2019, SPA: Landesbank Hessen-Thuringen | 175,000 | 175,000 | ||||||
Westchester County, NY, Industrial Development Agency, Civic Facility Revenue, Jewish Project, 2.3%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 100,000 | 100,000 | ||||||
|
| |||||||
14,890,000 | ||||||||
North Carolina 0.9% |
| |||||||
North Carolina, State Capital Facilities Finance Agency Student Revenue, Housing NCA&T University Foundation Project, Series B, 2.37%*, 5/7/2019, INS: AGC, LOC: PNC Bank NA | 2,575,000 | 2,575,000 |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Free Money Fund Class S | | | 13 |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Ohio 6.6% |
| |||||||
Cuyahoga County, OH, Health Care Facilities Revenue, AM McGregor Home Project, 2.38%*, 5/7/2019, LOC: Northern Trust Company | 12,400,000 | 12,400,000 | ||||||
Franklin County, OH, Trinity Health Credit Group, 1.7%**, 12/1/2046 | 5,000,000 | 5,000,000 | ||||||
Hamilton County, OH, Economic Development Revenue, St Xavier High School Project, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 1,695,000 | 1,695,000 | ||||||
|
| |||||||
19,095,000 | ||||||||
Oklahoma 1.3% |
| |||||||
Oklahoma, Tender Option Bond Trust Floaters,Series 2018-XM0708, 144A, AMT, 2.48%*, 5/7/2019, LIQ: JPMorgan Chase Bank NA | 3,750,000 | 3,750,000 | ||||||
Pennsylvania 4.4% |
| |||||||
Butler County, PA, General Authority Revenue, School District Project, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 1,500,000 | 1,500,000 | ||||||
Lancaster, PA, Industrial Development Authority, Willow Valley Retirement, Series C, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 2,500,000 | 2,500,000 | ||||||
Pennsylvania, State Economic Development Financing Authority Revenue, Hawley Silk Mill LLC, Recovery Zone Facility, Series A1, 2.39%*, 5/7/2019, LOC: PNC Bank NA | 300,000 | 300,000 | ||||||
Pennsylvania, Tender Option Bond Trust,Series 2019-ZF2779, 2.33%*, 5/7/2019, LIQ: Barclays Bank PLC | 1,500,000 | 1,500,000 | ||||||
Philadelphia, PA, Airport Revenue, SeriesB-2, TECP, 1.72%, 5/31/2019 | 7,000,000 | 7,000,000 | ||||||
|
| |||||||
12,800,000 | ||||||||
Rhode Island 0.2% |
| |||||||
Rhode Island, State Health & Educational Building Corp., Higher Education Facility Revenue, Roger Williams University, Series A, 2.18%*, 5/7/2019, LOC: U.S. Bank NA | 520,000 | 520,000 | ||||||
South Carolina 0.1% |
| |||||||
North Charleston, SC, Certificates of Participation, 2.26%*, 5/7/2019, LOC: Bank of America NA | 355,000 | 355,000 | ||||||
South Dakota 0.7% |
| |||||||
South Dakota, State Health & Educational Facilities Authority, Sioux Valley Hospital & Health: | ||||||||
Series B, 2.15%*, 5/7/2019, LOC: U.S. Bank NA | 425,000 | 425,000 | ||||||
Series C, 2.15%*, 5/7/2019, LOC: U.S. Bank NA | 1,485,000 | 1,485,000 | ||||||
|
| |||||||
1,910,000 |
The accompanying notes are an integral part of the financial statements.
14 | | | DWS Tax-Free Money Fund Class S |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Tennessee 0.3% |
| |||||||
Loudon, TN, Industrial Development Board, Pollution Control Revenue, 2.4%*, 5/7/2019, LOC: Citibank NA | 300,000 | 300,000 | ||||||
Shelby County, TN, Health Educational & Housing Facilities Board, Multi-Family Housing Revenue, 2.4%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 600,000 | 600,000 | ||||||
|
| |||||||
900,000 | ||||||||
Texas 7.7% |
| |||||||
Austin, TX, Water & Wastewater Systems Revenue, 2.32%*, 5/7/2019, LOC: Barclays Bank PLC | 2,225,000 | 2,225,000 | ||||||
Harris County, TX, Houston Port Authority: | ||||||||
1.66%, 5/16/2019 | 3,600,000 | 3,600,000 | ||||||
1.74%, 6/6/2019 | 205,000 | 205,000 | ||||||
1.8%, 6/6/2019 | 5,500,000 | 5,500,000 | ||||||
Houston, TX, Utility Systems Revenue, First Lien, SeriesB-5, 2.32%*, 5/7/2019, LOC: Wells Fargo Bank NA | 590,000 | 590,000 | ||||||
Houston, TX, General Obligation Notes, SeriesE-1, TECP, 1.71%, 6/25/2019 | 2,000,000 | 2,000,000 | ||||||
Tarrant County, TX, Cultural Educational Facilities Finance Corp. Revenue, Christus Health Obligated Group,Series C-2, 2.4%*, 5/7/2019, LOC: Bank of NY Mellon | 850,000 | 850,000 | ||||||
Tarrant County, TX, Housing Finance Corp., Multifamily Housing Gateway Apartments, 2.4%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 375,000 | 375,000 | ||||||
Texas, State Variable Veternas: |
| |||||||
Series B, 2.15%*, 5/7/2019, SPA: Federal Home Loan Bank | 490,000 | 490,000 | ||||||
Series C, 2.44%*, 5/7/2019, SPA: Landesban Hessen-Thuringen | 445,000 | 445,000 | ||||||
Texas, Tender Option Bond Trust Receipts,Series 2015-XF2201, 144A, 2.33%*, 5/7/2019, LIQ: Citibank NA | 3,100,000 | 3,100,000 | ||||||
Texas State, Tax & Revenue Anticipation Notes, 4.0%, 8/29/2019 | 3,000,000 | 3,019,647 | ||||||
|
| |||||||
22,399,647 | ||||||||
Vermont 0.1% |
| |||||||
Vermont, State Educational & Health Buildings Financing Agency Revenue, Hospital Fletcher Allen, Series A, 2.39%*, 5/7/2019, LOC: TD Bank North NA | 400,000 | 400,000 | ||||||
Virginia 0.4% |
| |||||||
Loudoun County, VA, Industrial Development Authority Revenue, Jack Kent Cooke Foundation Project, 2.3%*, 5/7/2019, LOC: Northern Trust Company | 650,000 | 650,000 |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Free Money Fund Class S | | | 15 |
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Principal Amount ($) | Value ($) | |||||||
Salem, VA, Industrial Development Authority, Multi-Family Housing Revenue, Oak Park Apartments Project, 2.3%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 535,000 | 535,000 | ||||||
|
| |||||||
1,185,000 | ||||||||
Washington 0.8% |
| |||||||
King County, WA, Sewer Revenue, Junior Lien, Series A, 2.4%*, 5/7/2019, LOC: Landesbank Hessen-Thuringen | 530,000 | 530,000 | ||||||
Olympia, WA, Economic Development Corp., Spring Air Northwest Project, AMT, 2.38%*, 5/7/2019, LOC: U.S. Bank NA | 960,000 | 960,000 | ||||||
Washington, State Housing Finance Commission, Panorma City Project, 2.4%*, 5/7/2019, LOC: Wells Fargo Bank NA | 490,000 | 490,000 | ||||||
Washington, State Housing Finance Commission, Vintage of Central Airports Project, 2.42%*, 5/7/2019, LIQ: Freddie Mac, LOC: Freddie Mac | 325,000 | 325,000 | ||||||
|
| |||||||
2,305,000 | ||||||||
Wisconsin 3.9% |
| |||||||
Wisconsin, Whitewater Community Development Authority, Housing Preservation, 2.31%*, 5/7/2019, LOC: BMO Harris Bank NA | 7,455,000 | 7,455,000 | ||||||
Wisconsin, State General Obligation, Series05-A, TECP, 1.77%, 6/6/2019 | 1,800,000 | 1,800,000 | ||||||
Wisconsin, State Health & Education Facilities Authority, Ascension Health Alliance Senor Group, SeriesB-2, 4.0%*, 11/15/2043 | 1,545,000 | 1,547,870 | ||||||
Wisconsin, State Health & Educational Facilities Authority Revenue, Mequon Jewish Project, 2.4%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 475,000 | 475,000 | ||||||
|
| |||||||
11,277,870 | ||||||||
Other 2.6% |
| |||||||
Federal Home Loan Mortgage Corp., Multi-Family Variable Rate Certificates: | ||||||||
“A”, Series MO27, 2.32%*, 5/7/2019, LIQ: Freddie Mac | 2,815,000 | 2,815,000 | ||||||
“A”, Series M031, 2.33%*, 5/7/2019, LIQ: Freddie Mac | 2,960,000 | 2,960,000 | ||||||
Series M033, 2.33%*, 5/7/2019, LIQ: Freddie Mac | 815,000 | 815,000 | ||||||
“A”, Series M015, AMT, 2.35%*, 5/7/2019, LIQ: Freddie Mac | 1,065,000 | 1,065,000 | ||||||
|
| |||||||
7,655,000 | ||||||||
Total Municipal Investments (Cost $276,264,630) |
| 276,264,630 |
The accompanying notes are an integral part of the financial statements.
16 | | | DWS Tax-Free Money Fund Class S |
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Principal Amount ($) | Value ($) | |||||||
Preferred Shares ofClosed-End Investment Companies 4.8% |
| |||||||
California |
| |||||||
California, Nuveen Dividend Advantage Municipal Fund, Series1-1362, 144A, AMT, 2.43%*, 5/7/2019, LIQ: Societe Generale | 9,000,000 | 9,000,000 | ||||||
California, Nuveen Dividend Advantage Municipal Fund, Series 6, 144A, AMT, 2.43%*, 5/7/2019, LIQ: Citibank NA | 1,500,000 | 1,500,000 | ||||||
California, Nuveen Quality Municipal Income Fund, Series 7, 144A, AMT, 2.44%*, 5/7/2019, LIQ: Royal Bank of Canada | 3,500,000 | 3,500,000 | ||||||
| ||||||||
Total Preferred Shares ofClosed-End Investment Companies (Cost $14,000,000) |
| 14,000,000 | ||||||
% of Net Assets | Value ($) | |||||||
Total Investment Portfolio(Cost $290,264,630) | 99.6 | 290,264,630 | ||||||
Other Assets and Liabilities, Net | 0.4 | 1,284,563 | ||||||
| ||||||||
Net Assets | 100.0 | 291,549,193 |
* | Variable rate demand notes and variable rate demand preferred shares are securities whose interest rates are reset periodically (usually daily mode or weekly mode) by remarketing agents based on current market levels, and are not directly set as a fixed spread to a reference rate. These securities may be redeemed at par by the holder at any time, and are shown at their current rates as of April 30, 2019. Date shown reflects the earlier of demand date or stated maturity date. |
** | Floating rate security. These securities are shown at their current rate as of April 30, 2019. |
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.
AGC: Assured Guaranty Corp.
AMT: Subject to alternative minimum tax.
GTY: Guaranty Agreement
LIQ: Liquidity Facility
LOC: Letter of Credit
MUNIPSA: SIFMA Municipal Swap Index Yield
SPA: Standby Bond Purchase Agreement
TECP: Tax Exempt Commercial Paper
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Securities held by the Fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
The accompanying notes are an integral part of the financial statements.
DWS Tax-Free Money Fund Class S | | | 17 |
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The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Municipal Investments (a) | $ | — | $ | 276,264,630 | $ | — | $ | 276,264,630 | ||||||||
Preferred Shares ofClosed-End Investment Companies | — | 14,000,000 | — | 14,000,000 | ||||||||||||
Total | $ | — | $ | 290,264,630 | $ | — | $ | 290,264,630 |
(a) | See Investment Portfolio for additional detailed categorizations. |
The accompanying notes are an integral part of the financial statements.
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Statement of Assets and Liabilities
as of April 30, 2019 | ||||
Assets | | DWS Tax-Exempt Portfolio | ||
Investments in securities, valued at amortized cost | $ | 290,264,630 | ||
Cash | 17,977 | |||
Receivable for investments sold | 200,000 | |||
Receivable for Fund shares sold | 186,784 | |||
Interest receivable | 1,254,804 | |||
Other assets | 58,489 | |||
Total assets | 291,982,684 | |||
Liabilities | ||||
Payable for Fund shares redeemed | 158,192 | |||
Distributions payable | 59,128 | |||
Accrued Trustees’ fees | 4,011 | |||
Other accrued expenses and payables | 212,160 | |||
Total liabilities | 433,491 | |||
Net assets, at value | $ | 291,549,193 | ||
Net Assets Consist of | ||||
Distributable earnings (loss) | (50,568 | ) | ||
Paid-in capital | 291,599,761 | |||
Net assets, at value | $ | 291,549,193 |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Free Money Fund Class S | | | 19 |
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Statement of Assets and Liabilitiesas of April 30, 2019 (continued) |
Net Asset Value | | DWS Tax-Exempt Portfolio | | |
DWSTax-Exempt Cash Premier Shares | ||||
Net Asset Value, offering and redemption price per share ($49,478,536 ÷ 49,454,148 outstanding shares of beneficial interest, | $ | 1.00 | ||
DWSTax-Exempt Money Fund | ||||
Net Asset Value, offering and redemption price per share ($124,352,933 ÷ 124,291,658 outstanding shares of beneficial interest, | $ | 1.00 | ||
DWSTax-Free Money Fund Class S | ||||
Net Asset Value, offering and redemption price per share ($51,658,888 ÷ 51,633,423 outstanding shares of beneficial interest, | $ | 1.00 | ||
Service Shares | ||||
Net Asset Value, offering and redemption price per share ($13,841,671 ÷ 13,834,843 outstanding shares of beneficial interest, | $ | 1.00 | ||
Tax-Exempt Cash Managed Shares | ||||
Net Asset Value, offering and redemption price per share ($45,759,204 ÷ 45,736,619 outstanding shares of beneficial interest, | $ | 1.00 | ||
Tax-Free Investment Class | ||||
Net Asset Value, offering and redemption price per share ($6,457,961 ÷ 6,454,777 outstanding shares of beneficial interest, | $ | 1.00 |
The accompanying notes are an integral part of the financial statements.
20 | | | DWS Tax-Free Money Fund Class S |
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for the year ended April 30, 2019 |
| |||
Investment Income | | DWS Tax-Exempt Portfolio | | |
Income: | ||||
Interest | $ | 4,696,916 | ||
Expenses: | ||||
Management fee | 231,341 | |||
Administration fee | 303,403 | |||
Services to shareholders | 218,706 | |||
Distribution and service fees | 260,297 | |||
Custodian fee | 11,040 | |||
Professional fees | 119,852 | |||
Reports to shareholders | 114,292 | |||
Registration fees | 123,397 | |||
Trustees’ fees and expenses | 14,414 | |||
Other | 68,666 | |||
Total expenses before expense reductions | 1,465,408 | |||
Expense reductions | (447,709 | ) | ||
Total expenses after expense reductions | 1,017,699 | |||
Net investment income | 3,679,217 | |||
Net realized gain (loss) from investments | 16,792 | |||
Net increase (decrease) in net assets resulting from operations | $ | 3,696,009 |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Free Money Fund Class S | | | 21 |
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Statements of Changes in Net Assets
DWSTax-Exempt Portfolio | ||||||||
Years Ended April 30, | ||||||||
Increase (Decrease) in Net Assets | 2019 | 2018 | ||||||
Operations: | ||||||||
Net investment income | $ | 3,679,217 | $ | 2,423,950 | ||||
Net realized gain (loss) | 16,792 | 2,158 | ||||||
Net increase in net assets resulting from operations | 3,696,009 | 2,426,108 | ||||||
Distributions to shareholders: | ||||||||
DWSTax-Exempt Cash Premier Shares | (554,487 | ) | (430,286 | ) | ||||
DWSTax-Exempt Money Fund | (1,689,303 | ) | (1,163,840 | ) | ||||
DWSTax-Free Money Fund Class S | (640,705 | ) | (413,013 | ) | ||||
Service Shares | (115,693 | ) | (36,384 | ) | ||||
Tax-Exempt Cash Managed Shares | (607,973 | ) | (364,721 | ) | ||||
Tax-Free Investment Class | (58,355 | ) | (28,399 | ) | ||||
Total distributions | (3,666,516 | ) | (2,436,643 | )* | ||||
Fund share transactions: | ||||||||
Proceeds from shares sold | 459,762,725 | 550,268,409 | ||||||
Reinvestment of distributions | 2,971,761 | 1,998,663 | ||||||
Payments for shares redeemed | (485,955,370 | ) | (576,644,724 | ) | ||||
Net increase (decrease) in net assets from Fund share transactions | (23,220,884 | ) | (24,377,652 | ) | ||||
Increase (decrease) in net assets | (23,191,391 | ) | (24,388,187 | ) | ||||
Net assets at beginning of period | 314,740,584 | 339,128,771 | ||||||
Net assets at end of period | $ | 291,549,193 | $ | 314,740,584 | ** |
* | Includes distributions from net investment income. |
** | Includes distributions in excess of net investment income of $47,775 |
The accompanying notes are an integral part of the financial statements.
22 | | | DWS Tax-Free Money Fund Class S |
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DWSTax-Exempt Portfolio
DWSTax-Free Money Fund Class S
Years Ended April 30, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Selected Per Share Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | .013 | .008 | .005 | .000 | * | .000 | * | |||||||||||||
Net (loss) | .000 | * | .000 | * | (.000 | )* | .000 | * | .000 | * | ||||||||||
Total from investment operations | .013 | .008 | .005 | .000 | * | .000 | * | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (.013 | ) | (.008 | ) | (.005 | ) | (.000 | )* | (.000 | )* | ||||||||||
Net realized gains | — | — | (.000 | )* | (.000 | )* | (.000 | )* | ||||||||||||
Total distributions | (.013 | ) | (.008 | ) | (.005 | ) | (.000 | )* | (.000 | )* | ||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
Total Return (%)a | 1.30 | .79 | .46 | .03 | .03 | |||||||||||||||
Ratios to Average Net Assets and Supplemental Data |
| |||||||||||||||||||
Net assets, end of period ($ millions) | 52 | 51 | 55 | 67 | 76 | |||||||||||||||
Ratio of expenses before expense reductions (%) | .40 | .36 | .33 | .28 | .27 | |||||||||||||||
Ratio of expenses after expense reductions (%) | .26 | .27 | .28 | .13 | .10 | |||||||||||||||
Ratio of net investment income (%) | 1.29 | .78 | .38 | .02 | .01 |
a | Total return would have been lower had certain expenses not been reduced. |
* | Amount is less than $.0005. |
The accompanying notes are an integral part of the financial statements.
DWS Tax-Free Money Fund Class S | | | 23 |
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Notes to Financial Statements |
A. 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 anopen-end management investment company organized as a Massachusetts business trust.
The Trust offers two funds: DWS Government & Agency Securities Portfolio (formerly Deutsche Government & Agency Securities Portfolio) and DWSTax-Exempt Portfolio (formerly Deutsche Tax-Exempt Portfolio). These financial statements report on DWSTax-Exempt Portfolio (the “Fund”).
DWSTax-Exempt Portfolio offers six classes of shares: DWSTax-Exempt Cash Premier Shares (formerly Deutsche Tax-Exempt Cash Premier Shares), DWSTax-Exempt Money Fund (formerly Deutsche Tax-Exempt Money Fund), DWSTax-Free Money Fund Class S (formerly Deutsche Tax-Free Money Fund Class S), Service Shares,Tax-Exempt Cash Managed Shares andTax-Free Investment Class.
The financial highlights for all classes of shares, other than DWSTax-Free Money Fund Class S, are provided separately and are available upon request.
The Fund’s investment income, realized gains and losses, and certain Fund-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares of the Fund, 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.
The Fund’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which require the use of management estimates. Actual results could differ from those estimates. The Fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of U.S. GAAP. The policies described below are followed consistently by the Fund in the preparation of its financial statements.
In October 2018, the Securities and Exchange Commission adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification, which is intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information
24 | | | DWS Tax-Free Money Fund Class S |
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provided to investors. Effective with the current reporting period, the Fund adopted the amendments with the impacts being that the Fund is no longer required to present components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributable earnings and the amount of undistributed net investment income on the Statements of Changes in Net Assets.
Security Valuation. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The Fund values all securities utilizing the amortized cost method permitted in accordance with Rule2a-7 under the 1940 Act and certain conditions therein. Under this method, which does not take into account unrealized capital gains or losses on securities, an instrument is initially valued at its cost and thereafter assumes a constant accretion/amortization rate to maturity of any discount or premium. Securities held by the Fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
Disclosure about the classification of fair value measurements is included in a table following the Fund’s Investment Portfolio.
Federal Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies and to distribute all of its taxable andtax-exempt income to its shareholders.
At April 30, 2019, the Fund had a net tax basis capital loss carryforward of approximately $15,000, which may be applied against any realized net taxable capital gains indefinitely.
The Fund has reviewed the tax positions for the open tax years as of April 30, 2019 and has determined that no provision for income tax and/or uncertain tax positions is required in the Fund’s financial statements. The Fund’s federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service.
Distribution of Income. Net investment income of the Fund is declared as a daily dividend and is distributed to shareholders monthly. The Fund may
DWS Tax-Free Money Fund Class S | | | 25 |
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take into account capital gains and losses in its daily dividend declarations. The Fund may also make additional distributions for tax purposes if necessary.
Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Temporary book and tax basis differences will reverse in a subsequent period. There were nobook-to-tax differences for the Fund.
At April 30, 2019, the Fund’s components of distributable earnings (accumulated losses) on a tax basis are as follows:
DWSTax-Exempt Portfolio: | ||||
Undistributed tax-exempt income | $ | 24,054 | ||
Capital loss carryforwards | $ | (15,000 | ) |
At April 30, 2019, DWSTax-Exempt Portfolio had an aggregate cost of investments for federal income tax purposes of $290,264,630.
In addition, the tax character of distributions paid to shareholders by the Fund is summarized as follows:
Years Ended April 30, | ||||||||
Portfolio | 2019 | 2018 | ||||||
DWSTax-Exempt Portfolio: | ||||||||
Distributions fromtax-exempt income | $ | 3,666,516 | $ | 2,436,643 |
Expenses. Expenses of the Trust arising in connection with a specific Fund are allocated to that Fund. Other Trust expenses which cannot be directly attributed to a Fund are apportioned pro rata on the basis of relative net assets among the funds in the Trust.
Contingencies. In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.
Other. Investment transactions are accounted for on trade date. Interest income is recorded on the accrual basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. All discounts and premiums are accreted/amortized for both tax and financial reporting purposes.
26 | | | DWS Tax-Free Money Fund Class S |
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B. Related Parties
Management Agreement. Under an Amended and Restated Investment Management Agreement with DWS Investment Management Americas, Inc. (formerly Deutsche Investment Management Americas Inc.) (“DIMA” or the “Advisor”), an indirect, wholly owned subsidiary of DWS Group GmbH & Co. KGaA (“DWS Group”), the Advisor directs the investments of the Fund in accordance with its investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Fund.
The monthly management fee for the Fund is computed based on the combined average daily net assets of the two funds of the Trust and allocated to the Fund based on its relative net assets, computed and accrued daily and payable monthly, at the following annual rates:
First $500 million of the Funds’ 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% |
Accordingly, for the year ended April 30, 2019, the fee pursuant to the Investment Management Agreement on DWS Tax-Exempt Portfolio was equivalent to an annual rate (exclusive of any applicable waivers/reimbursements) of 0.08% of the Fund’s average daily net assets.
For the period from May 1, 2018 through September 30, 2019, the Advisor has contractually agreed to waive its fees and/or reimburse certain operating expenses of the DWSTax-Free Money Fund Class S to the extent necessary to maintain the total annual operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest) at 0.48%.
In addition, the Advisor has agreed to voluntarily waive additional expenses. The voluntary waiver may be changed or terminated at any time without notice. Under these arrangements, the Advisor waived certain expenses on DWSTax-Free Money Fund Class S.
In addition, the Advisor has also agreed to maintain expenses of certain other classes of the Trust. These rates are disclosed in the respective share classes’ annual reports that are provided separately and are available upon request.
DWS Tax-Free Money Fund Class S | | | 27 |
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For the year ended April 30, 2019, fees waived and/or expenses reimbursed for each class are as follows:
DWSTax-Exempt Cash Premier Shares | $ | 57,460 | ||
DWSTax-Exempt Money Fund | 202,120 | |||
DWSTax-Free Money Fund Class S | 68,543 | |||
Service Shares | 35,522 | |||
Tax-Exempt Cash Managed Shares | 75,471 | |||
Tax-Free Investment Class | 8,593 | |||
$ | 447,709 |
Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays the Advisor an annual fee (“Administration Fee”) of 0.10% of the Fund’s average daily net assets, computed and accrued daily and payable monthly. For the year ended April 30, 2019, the Administration Fee was as follows:
Fund | Administration Fee | Unpaid at April 30, 2019 | ||||||
DWSTax-Exempt Portfolio | $ | 303,403 | $ | 23,594 |
Service Provider Fees. DWS Service Company (“DSC”), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent for the Fund. Pursuant to asub-transfer agency agreement between DSC and DST Systems, Inc. (“DST”), DSC has delegated certain transfer agent, dividend-paying agent and shareholder service agent functions to DST. DSC compensates DST out of the shareholder servicing fee it receives from the Fund. For the year ended April 30, 2019, the amounts charged to the Fund by DSC were as follows:
DWSTax-Exempt Portfolio: | Total Aggregated | Unpaid at April 30, 2019 | ||||||
DWSTax-Exempt Cash Premier Shares | $ | 2,663 | $ | 690 | ||||
DWSTax-Exempt Money Fund | 36,405 | 6,015 | ||||||
DWSTax-Free Money Fund Class S | 29,938 | 4,955 | ||||||
Service Shares | 67,885 | 4,268 | ||||||
Tax-Exempt Cash Managed Shares | 31,160 | 3,758 | ||||||
Tax-Free Investment Class | 5,004 | 859 | ||||||
$ | 173,055 | $ | 20,545 |
In addition, for the year ended April 30, 2019, the amounts charged to the Fund for recordkeeping and other administrative services provided by
28 | | | DWS Tax-Free Money Fund Class S |
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unaffiliated third parties, included in the Statement of Operations under “Services to shareholders,” were as follows:
Sub-Recordkeeping | Total Aggregated | |||
DWS Tax-Exempt Money Fund | $ | 18,316 | ||
DWS Tax-Free Money Fund Class S | 978 | |||
$ | 19,294 |
Distribution Service Agreement. Under the Distribution Service Agreement, in accordance with Rule12b-1 under the 1940 Act, DWS Distributors, Inc. (“DDI”), 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 year ended April 30, 2019, the Distribution Fee was as follows:
DWSTax-Exempt Portfolio: | Distribution Fee | Unpaid at April 30, 2019 | Annual Rate | Contractual Rate | ||||||||||||
Service Shares | $ | 161,991 | $ | 6,880 | .60 | % | .60 | % | ||||||||
Tax-Free Investment Class | 15,245 | 1,357 | .25 | % | .25 | % | ||||||||||
$ | 177,236 | $ | 8,237 |
In addition, DDI 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 Rule12b-1 plan.
For the year ended April 30, 2019, the Service Fee was as follows:
DWS Tax-Exempt Portfolio: | Service Fee | Unpaid at April 30, 2019 | Annual Rate | Contractual Rate | ||||||||||||
Tax-Exempt Cash Managed Shares | $ | 78,792 | $ | 5,641 | .15 | % | .15 | % | ||||||||
Tax-Free Investment Class | 4,269 | 380 | .07 | % | .07 | % | ||||||||||
$ | 83,061 | $ | 6,021 |
Typesetting and Filing Service Fees. Under an agreement with the Fund, DIMA is compensated for providing certainpre-press and regulatory filing services to the Fund. For the year ended April 30, 2019, the amount charged to the Fund by DIMA included in the Statement of Operations under “Reports to shareholders” was as follows:
Fund | Total Aggregated | Unpaid at April 30, 2019 | ||||||
DWSTax-Exempt Portfolio | $ | 47,887 | $ | 21,973 |
Trustees’ Fees and Expenses. The Fund paid retainer fees to each Trustee not affiliated with the Advisor, plus specified amounts to the Board Chairperson and to each committee Chairperson.
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Transactions with Affiliates. The Fund may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is solely due to having a common investment adviser, common officers, or common trustees. During the year ended April 30, 2019, the Fund engaged in securities purchases of $422,475,000 and securities sales of $564,985,000 with an affiliated fund in compliance with Rule17a-7 under the 1940 Act.
C. Line of Credit
The Fund and other affiliated funds (the “Participants”) share in a $400 million revolving credit facility provided by a syndication of banks. The Fund may borrow for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the 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 theone-month LIBOR exceeds the Federal Funds Rate, the amount of such excess. The Fund may borrow up to a maximum of 33 percent of its net assets under the agreement. The Fund had no outstanding loans at April 30, 2019.
D. Fund Share Transactions
The following table summarizes share and dollar activity in the Fund:
DWSTax-Exempt Portfolio
Year Ended April 30, 2019 | Year Ended April 30, 2018 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Shares sold | ||||||||||||||||
DWSTax-Exempt Cash Premier Shares | 62,299,935 | $ | 62,299,935 | 67,725,230 | $ | 67,725,230 | ||||||||||
DWSTax-Exempt Money Fund | 34,172,341 | 34,172,341 | 51,423,925 | 51,423,925 | ||||||||||||
DWSTax-Free Money Fund Class S | 11,153,741 | 11,153,741 | 13,879,488 | 13,879,488 | ||||||||||||
Service Shares | 53,988,330 | 53,988,330 | 81,813,513 | 81,813,513 | ||||||||||||
Tax-Exempt Cash Managed Shares | 286,624,984 | 286,624,984 | 326,154,215 | 326,154,215 | ||||||||||||
Tax-Free Investment Class | 11,523,394 | 11,523,394 | 9,272,138 | 9,272,138 | ||||||||||||
Account Maintenance Fees | — | — | — | (100 | ) | |||||||||||
$ | 459,762,725 | $ | 550,268,409 |
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Year Ended April 30, 2019 | Year Ended April 30, 2018 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Shares issued to shareholders in reinvestment of distributions |
| |||||||||||||||
DWSTax-Exempt Cash Premier Shares | 537,230 | $ | 537,230 | 394,754 | $ | 394,754 | ||||||||||
DWSTax-Exempt Money Fund | 1,659,886 | 1,659,886 | 1,145,507 | 1,145,507 | ||||||||||||
DWSTax-Free Money Fund Class S | 607,214 | 607,214 | 392,467 | 392,467 | ||||||||||||
Service Shares | 108,406 | 108,406 | 36,362 | 36,362 | ||||||||||||
Tax-Exempt Cash Managed Shares | 1,638 | 1,638 | 1,571 | 1,571 | ||||||||||||
Tax-Free Investment Class | 57,387 | 57,387 | 28,002 | 28,002 | ||||||||||||
$ | 2,971,761 | $ | 1,998,663 | |||||||||||||
Shares redeemed |
| |||||||||||||||
DWSTax-Exempt Cash Premier Shares | (54,454,045 | ) | $ | (54,454,045 | ) | (64,594,618 | ) | $ | (64,594,618 | ) | ||||||
DWSTax-Exempt Money Fund | (47,917,455 | ) | (47,917,455 | ) | (59,547,276 | ) | (59,547,276 | ) | ||||||||
DWSTax-Free Money Fund Class S | (11,058,223 | ) | (11,058,223 | ) | (18,119,437 | ) | (18,119,437 | ) | ||||||||
Service Shares | (82,572,012 | ) | (82,572,012 | ) | (79,236,036 | ) | (79,236,036 | ) | ||||||||
Tax-Exempt Cash Managed Shares | (279,241,365 | ) | (279,241,365 | ) | (342,806,879 | ) | (342,806,879 | ) | ||||||||
Tax-Free Investment Class | (10,712,270 | ) | (10,712,270 | ) | (12,340,478 | ) | (12,340,478 | ) | ||||||||
$ | (485,955,370 | ) | $ | (576,644,724 | ) | |||||||||||
Net increase (decrease) |
| |||||||||||||||
DWSTax-Exempt Cash Premier Shares | 8,383,120 | $ | 8,383,120 | 3,525,366 | $ | 3,525,366 | ||||||||||
DWSTax-Exempt Money Fund | (12,085,228 | ) | (12,085,228 | ) | (6,977,844 | ) | (6,977,844 | ) | ||||||||
DWSTax-Free Money Fund Class S | 702,732 | 702,732 | (3,847,482 | ) | (3,847,482 | ) | ||||||||||
Service Shares | (28,475,276 | ) | (28,475,276 | ) | 2,613,839 | 2,613,839 | ||||||||||
Tax-Exempt Cash Managed Shares | 7,385,257 | 7,385,257 | (16,651,093 | ) | (16,651,093 | ) | ||||||||||
Tax-Free Investment Class | 868,511 | 868,511 | (3,040,338 | ) | (3,040,338 | ) | ||||||||||
Account Maintenance Fees | — | — | — | (100 | ) | |||||||||||
$ | (23,220,884 | ) | $ | (24,377,652 | ) |
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Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Cash Account Trust and Shareholders of DWS Tax-Exempt Portfolio:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of DWS Tax-Exempt Portfolio (formerly Deutsche Tax-Exempt Portfolio) (the “Fund”) (one of the funds constituting Cash Account Trust) (the “Trust”), including the investment portfolio, as of April 30, 2019, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Cash Account Trust) at April 30, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are
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required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2019, by correspondence with the custodian and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies in the DWS family of funds since at least 1979, but we are unable to determine the specific year.
Boston, Massachusetts
June 19, 2019
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Information About Your Fund’s Expenses
As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service(12b-1) fees and other Fund expenses. Examples of transaction costs include account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recentsix-month period, the Fund limited these expenses; had it not done so, expenses would have been higher for DWSTax-Free Money Fund Class S. The example in the table is based on an investment of $1,000 invested at the beginning of thesix-month period and held for the entire period (November 1, 2018 to April 30, 2019).
The tables illustrate your Fund’s expenses in two ways:
– | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
– | Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The “Expenses Paid per $1,000” line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. An account maintenance fee of $6.25 per quarter for DWSTax-Free Money Fund Class S shares may apply for certain accounts whose balances do not meet the applicable minimum initial investment. This fee is not included in these tables. If it was, the estimate of expenses paid for DWSTax-Free Money Fund Class S shares during the period would be higher, and account value during the period would be lower, by this amount.
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Expenses and Value of a $1,000 Investment for the six months ended April 30, 2019 (Unaudited) | ||||
Actual Fund Return | DWS Tax-Free Money Fund Class S | |||
Beginning Account Value 11/1/18 | $ | 1,000.00 | ||
Ending Account Value 4/30/19 | $ | 1,007.10 | ||
Expenses Paid per $1,000* | $ | 1.29 | ||
Hypothetical 5% Fund Return | ||||
Beginning Account Value 11/1/18 | $ | 1,000.00 | ||
Ending Account Value 4/30/19 | $ | 1,023,51 | ||
Expenses Paid per $1,000* | $ | 1.30 |
* | Expenses are equal to the Fund’s annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recentsix-month period), then divided by 365. |
Annualized Expense Ratio | ||||
DWSTax-Free Money Fund Class S | .26% |
For more information, please refer to the Fund’s prospectus.
For an analysis of the fees associated with an investment in the Fund or similar funds, please refer to tools.finra.org/fund_analyzer/.
Tax Information | (Unaudited) |
Of the dividends paid from net investment income for the taxable year ended April 30, 2019, 100% are designated as exempt interest dividends for federal income tax purposes.
Please consult a tax advisor if you have questions about federal or state income tax laws, or on how to prepare your tax returns. If you have specific questions about your account, please call (800) 728-3337.
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Proxy Voting
The Fund’s policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 are available on our Web site —dws.com/en-us/resources/proxy-voting — or on the SEC’s Web site — sec.gov. To obtain a written copy of the Fund’s policies and procedures without charge, upon request, call us toll free at (800)728-3337.
Portfolio Holdings
Following the Fund’s fiscal first and thirdquarter-end, a complete portfolio holdings listing was filed with the SEC on FormN-Q. Effective from and after the Fund’s first fiscal quarter-end of 2019, Form N-Q is rescinded and will not be filed with the SEC. In addition, each month, information about the Fund and its portfolio holdings is filed with the SEC on FormN-MFP. The SEC delays the public availability of the information filed on FormN-MFP for 60 days after the end of the reporting period included in the filing. These forms will be available on the SEC’s Web site at sec.gov. The Fund’s portfolio holdings are also posted on dws.com as of each month-end. Please see the Fund’s current prospectus for more information.
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Advisory Agreement Board Considerations and Fee Evaluation
The Board of Trustees (hereinafter referred to as the “Board” or “Trustees”) approved the renewal of DWSTax-Exempt Portfolio’s (the “Fund”) investment management agreement (the “Agreement”) with DWS Investment Management Americas, Inc. (“DIMA”) in September 2018.
In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:
– | During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”). |
– | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board’s Contract Committee reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Board. The Board then reviewed the Contract Committee’s findings and recommendations. |
– | The Board also received extensive information throughout the year regarding performance of the Fund. |
– | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
– | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s Rule12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DIMA and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered, generally, that shareholders chose to invest or remain invested in the Fund knowing that DIMA managed the
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Fund. DIMA is part of DWS Group GmbH & Co. KGaA (“DWS Group”). DWS Group is a global asset management business that offers a wide range of investing expertise and resources, including research capabilities in many countries throughout the world. In 2018, approximately 20% of DWS Group’s shares were sold in an initial public offering, with Deutsche Bank AG owning the remaining shares.
As part of the contract review process, the Board carefully considered the fees and expenses of each DWS fund overseen by the Board in light of the fund’s performance. In many cases, this led to the negotiation and implementation of expense caps. As part of these negotiations, the Board indicated that it would consider relaxing these caps in future years following sustained improvements in performance, among other considerations.
While shareholders may focus primarily on fund performance and fees, the Fund’s Board considers these and many other factors, including the quality and integrity of DIMA’s personnel and administrative support services provided by DIMA, such as back-office operations, fund valuations, and compliance policies and procedures.
Nature, Quality and Extent of Services. The Board considered the terms of the Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DIMA provides portfolio management services to the Fund and that, pursuant to a separate administrative services agreement, DIMA provides administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel and the resources made available to such personnel. The Board reviewed the Fund’s performance over short-term and long-term periods and compared those returns to various agreed-upon performance measures, including a peer universe compiled using information supplied by iMoneyNet, an independent fund data service. The Board also noted that it has put into place a process of identifying “Funds in Review” (e.g., funds performing poorly relative to a peer universe), and receives additional reporting from DIMA regarding such funds and, where appropriate, DIMA’s plans to address underperformance. The Board believes this process is an effective manner of identifying and addressing underperforming funds. Based on the information provided, the Board noted that, for theone- and three-year periods ended December 31, 2017, the Fund’s gross performance (DWSTax-Exempt Cash Premier 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).
Fees and Expenses. The Board considered the Fund’s investment management fee schedule, operating expenses and total expense ratios, and comparative information provided by Broadridge Financial Solutions, Inc. (“Broadridge”) and the Fee Consultant regarding investment
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management fee rates paid to other investment advisors by similar funds (1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates paid by the Fund, which include a 0.10% fee paid to DIMA under the Fund’s administrative services agreement, were lower than the median (1st quartile) of the applicable Broadridge peer group (based on Broadridge data provided as of December 31, 2017). Based on Broadridge data provided as of December 31, 2017, the Board noted that the Fund’s total operating expenses (excluding12b-1 fees and/or shareholder administration fees, if applicable) were higher than the median (4th quartile) of the applicable Broadridge expense universe (less any applicable12b-1 fees) for the following share classes: Service Shares, DWSTax-Exempt Cash Premier Shares, Tax Free Investment Class shares,Tax-Exempt Cash Managed Shares, DWSTax-Exempt Money Fund shares and DWSTax-Free Money Fund Class S shares. The Board noted the expense limitations agreed to by DIMA. The Board also noted the voluntary fee waivers implemented by DIMA prior to December 31, 2017 to ensure the Fund maintained a positive yield. The Board considered the Fund’s management fee rate as compared to fees charged by DIMA to comparable DWS U.S. registered funds (“DWS Funds”), noting that DIMA indicated that it does not provide services to any other comparable DWS Funds. The information requested by the Board as part of its review of fees and expenses also included information about institutional accounts (including anysub-advised funds and accounts) and funds offered primarily to European investors (“DWS Europe Funds”) managed by DWS Group. The Board noted that DIMA indicated that DWS Group does not manage any institutional accounts or DWS Europe Funds comparable to the Fund.
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DIMA.
Profitability. The Board reviewed detailed information regarding revenues received by DIMA under the Agreement. The Board considered the estimated costs to DIMA, andpre-tax profits realized by DIMA, from advising the DWS Funds, as well as estimates of thepre-tax profits attributable to managing the Fund in particular. The Board also received information regarding the estimated enterprise-wide profitability of DIMA and its affiliates with respect to all fund services in totality and by fund. The Board and the Fee Consultant reviewed DIMA’s methodology in allocating its costs to the management of the Fund. Based on the information provided, the Board concluded that thepre-tax profits realized by DIMA in connection with the management of the Fund were not unreasonable. The Board also reviewed certain publicly available information regarding the profitability of certain similar investment
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management firms. The Board noted that, while information regarding the profitability of such firms is limited (and in some cases is not necessarily prepared on a comparable basis), DIMA and its affiliates’ overall profitability with respect to the DWS Funds (after taking into account distribution and other services provided to the funds by DIMA and its affiliates) was lower than the overall profitability levels of most comparable firms for which such data was available.
Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Fund and whether the Fund benefits from any economies of scale. The Board noted that the Fund’s investment management fee schedule includes fee breakpoints. The Board concluded that the Fund’s fee schedule represents an appropriate sharing between the Fund and DIMA of such economies of scale as may exist in the management of the Fund at current asset levels.
Other Benefits to DIMA and Its Affiliates. The Board also considered the character and amount of other incidental or“fall-out” benefits received by DIMA and its affiliates, including any fees received by DIMA for administrative services provided to the Fund, any fees received by an affiliate of DIMA for transfer agency services provided to the Fund and any fees received by an affiliate of DIMA for distribution services. The Board also considered benefits to DIMA related to brokerage and soft-dollar allocations, including allocating brokerage to pay for research generated by parties other than the executing broker dealers, which pertain primarily to funds investing in equity securities. In addition, the Board considered the incidental public relations benefits to DIMA related to DWS Funds advertising and cross-selling opportunities among DIMA products and services. The Board considered these benefits in reaching its conclusion that the Fund’s management fees were reasonable.
Compliance. The Board considered the significant attention and resources dedicated by DIMA to its compliance processes in recent years. The Board noted in particular (i) the experience, seniority and time commitment of the individuals serving as DIMA’s and the Fund’s chief compliance officers and (ii) the substantial commitment of resources by DIMA and its affiliates to compliance matters, including the retention of compliance personnel.
Based on all of the information considered and the conclusions reached, the Board unanimously determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Trustees and counsel present. It is possible that individual Independent Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.
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The following table presents certain information regarding the Board Members and Officers of the Fund. Each Board Member’s year of birth is set forth in parentheses after his or her name. Unless otherwise noted, (i) each Board Member has engaged in the principal occupation(s) noted in the table for at least the most recent five years, although not necessarily in the same capacity; and (ii) the address of each Independent Board Member is c/o Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA02199-3600. Except as otherwise noted below, the term of office for each Board Member is until the election and qualification of a successor, or until such Board Member sooner dies, resigns, is removed or as otherwise provided in the governing documents of the Fund. Because the Fund does not hold an annual meeting of shareholders, each Board Member will hold office for an indeterminate period. The Board Members may also serve in similar capacities with other funds in the fund complex.
Independent Board Members | ||||||||
Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
Keith R. Fox, CFA (1954)
Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods importer and distributor); The Kennel Shop (retailer); former Chairman, National Association of Small Business Investment Companies; former Directorships: BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) (2011–2012) | 82 | — | |||||
John W. Ballantine (1946)
Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population well-being and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc. and Oak Brook Bank; Prisma Energy International; Public Radio International. Not-for-Profit Director/Trustee: Palm Beach Civic Association; Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago | 82 | Portland General Electric2 (utility company) (2003– present) |
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Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
Henry P. Becton, Jr. (1943)
Board Member since 1990 | Vice Chair and former President, WGBH Educational Foundation. Directorships: Public Radio International; Public Radio Exchange (PRX); The Pew Charitable Trusts (charitable organization); Massachusetts Humane Society; Overseer of the New England Conservatory; former Directorships: Becton Dickinson and Company2 (medical technology company); Belo Corporation2 (media company); The PBS Foundation; Association of Public Television Stations; Boston Museum of Science; American Public Television; Concord Academy; New England Aquarium; Mass. Corporation for Educational Telecommunications; Committee for Economic Development; Public Broadcasting Service; Connecticut College; North Bennett Street School (Boston); American Documentary, Inc. (public media) | 82 | — | |||||
Dawn-Marie Driscoll (1946)
Board Member since 1987 | Emeritus Executive Fellow, Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988). Directorships: Advisory Board, Center for Business Ethics, Bentley University; Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 82 | — | |||||
Richard J. Herring (1946)
Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); Director, The Wharton Financial Institutions Center (since 1994); formerly: Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Formerly Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), and Nonexecutive Director of Barclays Bank DE (2010–2018) | 82 | Director, Aberdeen Japan Fund (since 2007) |
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Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
William McClayton (1944)
Board Member since 2004 | Private equity investor (since October 2009); previously, Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001–2009); Directorship: Board of Managers, YMCA of Metropolitan Chicago; formerly: Senior Partner, Arthur Andersen LLP (accounting) (1966–2001); Trustee, Ravinia Festival | 82 | — | |||||
Rebecca W. Rimel (1951)
Board Member since 1995 | President, Chief Executive Officer and Director, The Pew Charitable Trusts (charitable organization) (1994–present); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012) | 82 | Director, Becton Dickinson and Company2 (medical technology company) (2012– present); Director, BioTelemetry Inc.2(health care) (2009– present) | |||||
William N. Searcy, Jr. (1946)
Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2(telecommunications) (November 1989–September 2003); Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 82 | — | |||||
Jean Gleason Stromberg (1943)
Board Member since 1997 | Retired. Formerly, Consultant (1997–2001); Director, Financial Markets U.S. Government Accountability Office (1996–1997); Partner, Norton Rose Fulbright, L.L.P. (law firm) (1978–1996); former Directorships: The William and Flora Hewlett Foundation (charitable organization) (2000–2015); Service Source, Inc. (nonprofit), Mutual Fund Directors Forum (2002–2004), American Bar Retirement Association (funding vehicle for retirement plans) (1987–1990 and 1994–1996) | 82 | — |
Officers4 | ||
Name, Year of Birth, Position with the Fund and Length of Time Served5 | Business Experience and Directorships During the Past Five Years | |
Hepsen Uzcan6(1974)
President and Chief Executive Officer, 2017–present | Managing Director,3 DWS; Secretary, DWS USA Corporation (since March 2018); Assistant Secretary, DWS Distributors, Inc. (since June 25, 2018); Director and Vice President, DWS Service Company (since June 25, 2018); Assistant Secretary, DWS Investment Management Americas, Inc. (since June 25, 2018); and Director and President, DB Investment Managers, Inc. (since June 25, 2018); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019) |
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Name, Year of Birth, Position with the Fund and Length of Time Served5 | Business Experience and Directorships During the Past Five Years | |
John Millette8(1962)
Vice President and Secretary, 1999–present | Director,3DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); and Director and Vice President, DWS Trust Company (2016–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017) | |
Diane Kenneally8,9(1966)
Chief Financial Officer and Treasurer, since 2018 | Director,3 DWS; formerly: Assistant Treasurer for the DWS funds (2007–2018) | |
Paul Antosca8(1957)
Assistant Treasurer, 2007–present | Director,3DWS | |
Sheila Cadogan8(1966)
Assistant Treasurer, 2017–present | Director,3DWS; Director and Vice President, DWS Trust Company (since 2018) | |
Scott D. Hogan8(1970)
Chief Compliance Officer, 2016–present | Director,3DWS | |
Caroline Pearson8(1962)
Chief Legal Officer, 2010–present | Managing Director,3DWS; formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); and Secretary, Deutsche AM Service Company (2010–2017) | |
Wayne Salit7(1967) Anti-Money Laundering Compliance Officer, 2014–present | Director,3 Deutsche Bank; and AML Officer, DWS Trust Company; formerly: Managing Director, AML Compliance Officer at BNY Mellon (2011–2014); and Director, AML Compliance Officer at Deutsche Bank (2004–2011) | |
Ciara Crawford10 (1984) Assistant Secretary, since February 8, 2019 | Associate, DWS (since 2015); previously, Legal Assistant at Accelerated Tax Solutions. |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Executive title, not a board directorship. |
4 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
5 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
6 | Address: 345 Park Avenue, New York, NY 10154. |
7 | Address: 60 Wall Street, New York, NY 10005. |
8 | Address: One International Place, Boston, MA 02110. |
9 | Appointed Treasurer and Chief Financial Officer effective July 2, 2018. |
10 | Address: 5022 Gate Parkway, Suite 400, Jacksonville, FL 32256. |
The Fund’s Statement of Additional Information (“SAI”) includes additional information about the Board Members. The SAI is available, without charge, upon request. If you would like to request a copy of the SAI, you may do so by calling the followingtoll-free number:(800) 728-3337.
44 | | | DWS Tax-Free Money Fund Class S |
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Notes
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Notes
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Notes
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DTFMF-2
(R-027591-8 6/19)
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April 30, 2019
Annual Report
to Shareholders
Tax-Free Investment Class
DWSTax-Exempt Portfolio
(formerly Deutsche Tax-Exempt Portfolio)
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s Web site (dws.com), and you will be notified by mail each time a report is posted and provided with a Web site link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank), or if you are a direct investor, by calling (800) 728-3337 or sending an email request to service@dws.com.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 728-3337 or send an email request to service@dws.com to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with DWS if you invest directly with the Fund.
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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 dws.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.
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.You should not rely on or expect the Advisor to enter into support agreements or take other actions to maintain the Fund’s $1.00 share price. The credit quality of the Fund’s holdings can change rapidly in certain markets, and the default of a single holding could have an adverse impact on the Fund’s share price. The Fund’s share price can also be negatively affected during periods of high redemption pressures and/or illiquid markets. The actions of a few large investors in one class of shares of the Fund may have a significant adverse effect on the share prices of all classes of shares of the Fund. Please read the prospectus for specific details regarding the Fund’s risk profile.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services.
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | | Tax-Free Investment Class |
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Portfolio Management Review | (Unaudited) |
Market Overview
All performance information below is historical and does not guarantee future results. Investment return and principal fluctuate, so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit dws.com for the Funds’ most recentmonth-end performance. The7-day current yield refers to the income paid by the Funds over a7-day period expressed as an annual percentage rate of each Fund’s shares outstanding. Yields fluctuate and are not guaranteed.
Over the past 12 months ended April 30, 2019, yields across the money market yield curve fluctuated based on the growing U.S. economy and evolving U.S. Federal Reserve (the Fed) statements and actions. In light of continued economic strength and a tight labor market, the Federal Open Market Committee (FOMC) raised short-term rates at its June 2018 meeting. In September, the Fed once again raised rates, with accompanying statements that at the time were viewed as aggressive regarding the prospects for future rate hikes. In December, a number of factors contributed to a considerable increase in financial market volatility and a tightening in overall financial conditions. These factors included statements by the Fed following its December 2018 rate hike. In December, the Fed’s messaging disappointed market watchers because the central bank did not commit to a pause in its rate hikes, despite signs that growth was slowing in some parts of the global economy. Disappointment in the Fed’s statements during the fourth quarter of 2018 coincided with a major correction in the stock markets, an inverted yield curve (often a predictor of economic recession), a widening of credit spreads, apparent difficulties in trade talks with China, and a U.S. government shutdown.
In January, the short-term rate environment underwent a meaningful change: Responding to the significant financial market disruptions that had taken place in late 2018, the Fed pivoted dramatically, taking all of its rate hike forecasts off the table and changing from a hawkish to a neutral (to some observers, even dovish) monetary policy stance. The Fed not only walked backed its projections of fed funds rate increases, but also lowered its U.S. economic growth estimates. Money market participants took the altered short-term rate expectations even further by “pricing in” a Fed rate cut in early 2020. At the end of the12-month period, the
Tax-Free Investment Class | | | 3 |
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market consensus was that in terms of possible short-term rate changes, the Fed would most likely be on hold for the remainder of 2019.
Positive Contributors to Fund Performance
DWSTax-Exempt Portfolio seeks to provide maximum current income that is exempt from federal income taxes to the extent consistent with stability of capital.
For the DWS Tax Exempt Portfolio, we sought to achieve an attractive yield by implementing a strategic balance of short liquidity instruments, as well as longer-term products. With an increase in market volatility, keeping overweight balances in floating-rate VRDNs (Variable Rate Demand Notes) enabled the Fund to purchase fixed-term commercial paper with maturities of 30 to 90 days, providing what we believe to be attractive yield. (The interest rate of variable rate securities adjusts periodically based on indices such as the Securities Industry and Financial Market Association Index of Variable Rate Demand Notes. Because the interest rates of these instruments adjust as market conditions change, they provide flexibility in an uncertain interest rate environment.)
Negative Contributors to Fund Performance
The types of securities that we invested in tended to have lower yields than issues carrying more risk. We preferred to be cautious during a time of market uncertainty. In the end this may have cost the Fund some yield, but we believe that this represented a prudent approach to preserving principal.
Outlook and Positioning
We are cautious regarding current U.S. economic policy, the global geopolitical situation, and the agenda on trade that the administration is pursuing. However, we believe that the economy can continue to expand, though with a possible slowdown later this year or early in 2020. For now we are positioning the Fund for continued growth. With no Fed rate hikes projected in the coming months, we plan to continue our current portfolio strategy until there is a significant shift in the market environment.
We continue our insistence on what we believe to be the highest credit quality within the Fund. We also plan to maintain what we believe to be
4 | | | Tax-Free Investment Class |
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our conservative investment strategies and standards under the current market conditions. We continue to apply what we believe to be a careful approach to investing on behalf of the Fund and to seek competitive yield for our shareholders.
Fund Performance(as of April 30, 2019)
Performance is historical and does not guarantee future results. Current performance may be lower or higher than the performance data quoted.
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
7-Day Current Yield | ||||
Tax-Free Investment Class | 1.61%* | |||
Equivalent Taxable Yield | 2.48%** |
Yields are historical, will fluctuate and do not guarantee future performance. The7-day current yield refers to the income paid by the Fund over a7-day period expressed as an annual percentage rate of the Fund’s shares outstanding. For the most current yield information, visit our Web site at dws.com.
* | The 7-Day Current Yield would have been 1.42%, had certain expenses not been reduced. |
** | The equivalent taxable yield allows you to compare with the performance of taxable money market funds. For the DWSTax-Exempt Portfolio, the equivalent taxable yield is based upon the marginal income tax rate of 40.8%. Income may be subject to local taxes and, for some investors, the alternative minimum tax. |
Portfolio Management Team
A group of investment professionals is responsible for theday-to-day management of the Fund. These investment professionals have a broad range of experience managing money market funds.
The views expressed reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The management team’s views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Past performance is no guarantee of future results. Current and future portfolio holdings are subject to risk.
Tax-Free Investment Class | | | 5 |
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Terms to Know
Theyield curve is a graphical representation of how yields on bonds of different maturities compare. Normally, yield curves slant up, as bonds with longer maturities typically offer higher yields than short-term bonds.
Floating-rate securities are debt instruments with floating-rate coupons that generally reset every 30 to 90 days. While floating-rate securities are senior to equity and fixed-income securities, there is no guaranteed return of principal in case of default. Floating-rate issues often have less interest-rate risk than other fixed-income investments. Floating-rate securities are most often secured assets, generally senior to a company’s secured debt, and can be transferred to debt holders, resulting in potential downside risk.
6 | | | Tax-Free Investment Class |
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* | The Fund is compared to its respective iMoneyNet Category: NationalTax-Free Retail Money Fund Average — Category consists of all nationaltax-free and municipal retail funds. Portfolio holdings oftax-free funds include Rated and Unrated Demand Notes, Rated and Unrated General Market Notes; Commercial Paper; Put Bonds; AMT Paper and OtherTax-Free Holdings. |
Weighted average maturity, also known as effective maturity, is the weighted average of the maturity date of bonds held by the Fund taking into consideration any available maturity shortening features.
Portfolio holdings and characteristics are subject to change.
For more complete details about the Fund’s holdings, see pages 8–18. A quarterly Fact Sheet is available on dws.com or upon request.
Tax-Free Investment Class | | | 7 |
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Investment Portfolio | as of April 30, 2019 |
Principal Amount ($) | Value ($) | |||||||
Municipal Investments 94.8% | ||||||||
Alabama 0.5% |
| |||||||
Tuscaloosa County, AL, Industrial Development Authority, Gulf Opportunity Zone, Hunt Refining Project, Series I, 144A, 2.33%*, 5/7/2019, LOC: Bank of Nova Scotia | 1,600,000 | 1,600,000 | ||||||
Alaska 0.5% |
| |||||||
Alaska, State Industrial Development & Export Authority Revenue, Series B, 2.3%*, 5/1/2019, LOC: BankTokyo-Mitsubishi UFJ | 1,500,000 | 1,500,000 | ||||||
Arizona 1.5% |
| |||||||
Arizona, State Health Facilities Authority Revenue, Dignity Health, Series A, 2.15%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 215,000 | 215,000 | ||||||
Arizona, State Health Facilities Authority, Banner Health, Series G, 2.42%*, 5/7/2019, LOC: Wells Fargo Bank NA | 285,000 | 285,000 | ||||||
Maricopa County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Sani Angelin Apartments Project, Series A, AMT, 2.5%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 240,000 | 240,000 | ||||||
Maricopa County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Sanitary Clemente Apartments Project, Series A, AMT, 2.45%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 810,000 | 810,000 | ||||||
Maricopa County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Sanitary Fernando Apartments Project, Series A, AMT, 2.45%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 445,000 | 445,000 | ||||||
Pima County, AZ, Industrial Development Authority, Multi-Family Housing Revenue, Eastside PL Apartments, 2.4%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 1,350,000 | 1,350,000 | ||||||
Pima County, AZ, Industrial Development Authority, Series A, 2.4%*, 5/7/2019, LOC: Federal Home Loan Bank | 950,000 | 950,000 | ||||||
|
| |||||||
4,295,000 | ||||||||
Arkansas 3.1% |
| |||||||
Little Rock, AR, Metrocentere Improvement District No.1, Little Rock Newspapers, Inc., 2.3%*, 5/1/2019, LOC: JPMorgan Chase Bank NA | 2,500,000 | 2,500,000 | ||||||
Lowell, AR, Industrial Development Revenue, Little Rock Newspapers Project, AMT, 2.53%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 6,500,000 | 6,500,000 | ||||||
|
| |||||||
9,000,000 |
The accompanying notes are an integral part of the financial statements.
8 | | | Tax-Free Investment Class |
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Principal Amount ($) | Value ($) | |||||||
California 3.3% |
| |||||||
California, Statewide Community Development Authority, SeriesB-5, 1.77%, 8/7/2019 | 6,250,000 | 6,250,000 | ||||||
California, Wells Fargo Stage Trust Various States, Series 94C, 144A, AMT, MUNIPSA + 0.340%, 2.64%**, Mandatory Put 7/24/2019 @ 100, 5/1/2030, GTY: Wells Fargo Bank NA, LIQ: Wells Fargo Bank NA | 2,500,000 | 2,500,000 | ||||||
Los Angeles, CA, Municipal Improvement Corp., SeriesA-1, TECP, 1.66%, 5/30/2019 | 1,000,000 | 1,000,000 | ||||||
|
| |||||||
9,750,000 | ||||||||
Colorado 4.5% |
| |||||||
Colorado, State Education Loan Program, Series A, 5.0%, 6/27/2019 | 12,500,000 | 12,566,113 | ||||||
Colorado, State Housing & Finance Authority, Series I - AA2, 2.45%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 500,000 | 500,000 | ||||||
|
| |||||||
13,066,113 | ||||||||
Connecticut 0.4% |
| |||||||
Connecticut, Tender Option Bond Trust, Series 2018-XG0204, 2.33%*, 5/7/2019, LIQ: Barclays Bank PLC | 1,135,000 | 1,135,000 | ||||||
District of Columbia 0.3% |
| |||||||
District of Columbia, Georgetown University Revenue,Series C-1, 2.32%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 420,000 | 420,000 | ||||||
District of Columbia, Metropolitan Airport Authority Systems Revenue, SeriesC-1, AMT, 2.35%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 450,000 | 450,000 | ||||||
|
| |||||||
870,000 | ||||||||
Florida 10.3% |
| |||||||
Gainesville, FL, General Obligation Notes, Series C, TECP, 1.7%, 5/6/2019 | 2,000,000 | 2,000,000 | ||||||
Gainesville, FL, Industrial Development Revenue, Gainesville Hillel, Inc. Project, 2.15%*, 5/7/2019, LOC: Northern Trust Company | 4,150,000 | 4,150,000 | ||||||
Gainesville, FL, General Obligation Notes: | ||||||||
Series C, TECP, 1.69%, 5/2/2019 | 11,000,000 | 11,000,000 | ||||||
Series A, TECP, 1.83%, 6/3/2019 | 5,500,000 | 5,500,000 | ||||||
Miami-dade County, FL, Seaport Revenue, Series A, 2.3%*, 5/7/2019, LOC: PNC Bank NA | 925,000 | 925,000 | ||||||
Palm Beach County, FL, Henry Morrison Flagler Project Revenue, 2.4%*, 5/7/2019, LOC: Northern Trust Company | 1,300,000 | 1,300,000 | ||||||
Sarasota County, FL, State Revenue Planned Parenthood, Inc. Project, 2.4%*, 5/7/2019, LOC: BMO Harris Bank NA | 5,230,000 | 5,230,000 | ||||||
|
| |||||||
30,105,000 |
The accompanying notes are an integral part of the financial statements.
Tax-Free Investment Class | | | 9 |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Georgia 7.2% |
| |||||||
Atlanta City, GA, Second Lien Airport Passanger Facility Charge & Third Lien Airport General Revenue,Series 2016 H-3, TECP, 2.05%, 5/31/2019 | 200,000 | 200,000 | ||||||
Atlanta City, GA, Airport General Revenue, Series 2016H-1, TECP, 2.05%, 5/31/2019 | 230,000 | 230,000 | ||||||
Atlanta City, GA, Second Lien Airport Passanger Facility Charge & Third Lien Airport General Revenue, Series H-3: | ||||||||
TECP, 1.83%, 5/31/2019 | 137,000 | 137,000 | ||||||
TECP, 1.9%, 5/31/2019 | 234,000 | 234,000 | ||||||
City of Atlanta, GA, Airport General Revenue: |
| |||||||
SeriesF-3, TECP, 1.95%, 7/2/2019 | 200,000 | 200,000 | ||||||
Series-F-1, TECP, 1.95%, 7/2/2019 | 200,000 | 200,000 | ||||||
Georgia, General Obligation Notes, Series85-A, TECP, 1.78%, 6/5/2019 | 12,500,000 | 12,500,000 | ||||||
Georgia, Tender Option Bond Trust Receipts, | 6,800,000 | 6,800,000 | ||||||
Monroe County, GA, Development Authority Pollution Control Revenue, Oglethorpe Power Corp., Series A, 2.34%*, 5/7/2019, LOC: Bank of Montreal | 450,000 | 450,000 | ||||||
|
| |||||||
20,951,000 | ||||||||
Idaho 1.7% |
| |||||||
Idaho, State Health Facilities Authority, Hospital Revenue, Trinity Health Credit Group, Series ID, 1.7%**, 12/1/2048 | 5,000,000 | 5,000,000 | ||||||
Illinois 10.3% |
| |||||||
Channahon, IL, Morris Hospital Revenue, 2.31%*, 5/7/2019, LOC: U.S. Bank NA | 4,005,000 | 4,005,000 | ||||||
Illinois, Educational Facilities Authority, Chicago Zoological Society, Series B, 2.4%*, 5/7/2019, LOC: Northern Trust Company | 3,955,000 | 3,955,000 | ||||||
Illinois, Southwestern Development Authority Solid Waste Disposal Revenue, Waste Management, Inc., Project, AMT, 2.35%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 400,000 | 400,000 | ||||||
Illinois, State Development Finance Authority, Chicago Horticultural, 2.3%*, 5/7/2019, LOC: BMO Harris Bank NA | 2,600,000 | 2,600,000 | ||||||
Illinois, State Development Finance Authority, Ignatius College Project, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 2,000,000 | 2,000,000 | ||||||
Illinois, State Development Finance Authority, Industrial Development Revenue, Series A, AMT, 2.37%*, 5/7/2019, LOC: BMO Harris Bank NA | 565,000 | 565,000 | ||||||
Illinois, State Development Finance Authority, Jewish Council Youth Services, 2.31%*, 5/7/2019, LOC: BMO Harris Bank NA | 1,400,000 | 1,400,000 |
The accompanying notes are an integral part of the financial statements.
10 | | | Tax-Free Investment Class |
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Principal Amount ($) | Value ($) | |||||||
Illinois, State Development Finance Authority, St. Ignatius College Preparatory, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 3,850,000 | 3,850,000 | ||||||
Illinois, State Development Finance Authority, YMCA Metropolitan Chicago Project, 2.15%*, 5/7/2019, LOC: BMO Harris Bank NA | 1,000,000 | 1,000,000 | ||||||
Illinois, State Educational Facilities Authority Revenue, The Adler Planetarium, 2.26%*, 5/7/2019, LOC: PNC Bank NA | 1,100,000 | 1,100,000 | ||||||
Illinois, State Educational Facilities Authority, National Louis University, Series B, 2.3%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 190,000 | 190,000 | ||||||
Illinois, State Finance Authority Revenue, North Park University Project, 2.15%*, 5/7/2019, LOC: U.S. Bank NA | 1,900,000 | 1,900,000 | ||||||
Illinois, State Finance Authority Revenue, Uhlich Children’s Advantage Network, 2.31%*, 5/7/2019, LOC: U.S. Bank NA | 1,885,000 | 1,885,000 | ||||||
Illinois, State Housing Development Authority, Multi-Family Housing Revenue, 2.44%*, 5/7/2019, LIQ: Freddie Mac, LOC: Freddie Mac | 4,325,000 | 4,325,000 | ||||||
University of Illinois: |
| |||||||
2.15%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 330,000 | 330,000 | ||||||
2.42%*, 5/7/2019, LOC: Wells Fargo Bank NA | 425,000 | 425,000 | ||||||
|
| |||||||
29,930,000 | ||||||||
Indiana 2.6% |
| |||||||
Elkhart County, IN, Multy-Family Revenue, Ashton Pines Apartments, Series A, 2.35%*, 5/7/2019, LOC: Federal Home Loan Bank | 500,000 | 500,000 | ||||||
Indiana, State Finance Authority, Health Systems Revenue, Sisters of St. Francis Health, Series F, 2.32%*, 5/7/2019, LOC: Bank of NY Mellon | 2,900,000 | 2,900,000 | ||||||
Rockport, IN, Pollution Control Revenue, AEP Generating Co., Series B, 2.42%*, 5/7/2019, LOC: BankTokyo-Mitsubishi UFJ | 4,175,000 | 4,175,000 | ||||||
|
| |||||||
7,575,000 | ||||||||
Iowa 1.1% |
| |||||||
Iowa, State Finance Authority Midwestern Disaster Area Revenue, 2.35%*, 5/7/2019 | 405,000 | 405,000 | ||||||
Iowa, State Finance Authority, Economic Development Revenue, Series A, 2.34%*, 5/7/2019 | 300,000 | 300,000 | ||||||
Iowa, State Finance Authority, Single Family Mortgage Revenue, Mortgage Backed Securities Program: | ||||||||
Series D, 2.34%*, 5/7/2019, SPA: Federal Home Loan Bank | 1,550,000 | 1,550,000 | ||||||
Series E, 2.34%*, 5/7/2019, SPA: Federal Home Loan Bank | 855,000 | 855,000 | ||||||
|
| |||||||
3,110,000 |
The accompanying notes are an integral part of the financial statements.
Tax-Free Investment Class | | | 11 |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Kansas 0.3% |
| |||||||
Olathe, KS, Industrial Revenue, Multi Modal Diamant Boart, Series A, AMT, 2.46%*, 5/7/2019, LOC: Svenska Handelsbanken | 1,000,000 | 1,000,000 | ||||||
Kentucky 0.7% |
| |||||||
Boone County, KY, Pollution Control Revenue, Duke Energy Kentucky, Inc., 2.37%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 300,000 | 300,000 | ||||||
Louisville & Jefferson County, KY, Regional Airport Authority, UPS Worldwide Forwarding, Series C, AMT, 2.34%*, 5/1/2019 | 1,800,000 | 1,800,000 | ||||||
|
| |||||||
2,100,000 | ||||||||
Louisiana 0.2% |
| |||||||
Louisiana, State Housing Finance Agency, Centerbury House Apartments, 2.31%*, 5/7/2019, LOC: Fannie Mae | 550,000 | 550,000 | ||||||
Maryland 0.2% |
| |||||||
Maryland, State Health & Higher Educational Facilities Authority Revenue, Gaudenzia Foundation, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 500,000 | 500,000 | ||||||
Massachusetts 2.1% |
| |||||||
Massachusetts, Tender Option Bond Trust Receipts, Series 2015-XF2203, 144A, 2.32%*, 5/7/2019, LIQ: Citibank NA | 2,300,000 | 2,300,000 | ||||||
Massachusetts, University of Massachusetts, Building Authority Revenue, Series 2, MUNIPSA + 0.300%, 2.6%**, 11/1/2034 | 3,900,000 | 3,900,000 | ||||||
|
| |||||||
6,200,000 | ||||||||
Michigan 1.8% |
| |||||||
Michigan, Kent Hospital Finance Authority Revenue, Spectrum Health System, Series C, 2.4%*, 5/7/2019, LOC: Bank of NY Mellon | 290,000 | 290,000 | ||||||
University of Michigan, General Obligation Notes, SeriesK-1, TECP, 1.83%, 6/3/2019 | 5,000,000 | 5,000,000 | ||||||
|
| |||||||
5,290,000 | ||||||||
Mississippi 3.3% |
| |||||||
Mississippi, State Business Finance Commission, Gulf Opportunity Zone, Chevron U.S.A., Inc.: | ||||||||
Series F, 2.3%*, 5/7/2019, GTY: Chevron Corp. | 50,000 | 50,000 | ||||||
Series A, 2.44%*, 5/7/2019, GTY: Chevron Corp. | 9,505,000 | 9,505,000 | ||||||
Series B, 2.44%*, 5/7/2019, GTY: Chevron Corp. | 200,000 | 200,000 | ||||||
|
| |||||||
9,755,000 |
The accompanying notes are an integral part of the financial statements.
12 | | | Tax-Free Investment Class |
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Principal Amount ($) | Value ($) | |||||||
Missouri 1.1% |
| |||||||
Missouri, Tender Option Bond Trust Receipts,Series 2015-XF2198, 144A, 2.33%*, 5/7/2019, LIQ: Citibank NA | 2,660,000 | 2,660,000 | ||||||
St. Louis County, MO, Industrial Development Authority, Educational Whitefield School, Inc., Series B, 2.4%*, 5/7/2019, LOC: U.S. Bank NA | 450,000 | 450,000 | ||||||
|
| |||||||
3,110,000 | ||||||||
Nevada 2.7% |
| |||||||
Clark County, NV, Airport Systems Revenue, SeriesD-1, 2.4%*, 5/7/2019, LOC: Sumitomo Mitsui Banking | 6,755,000 | 6,755,000 | ||||||
Nevada, State Housing Division, Sonoma Palms LP, AMT, 2.32%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 1,100,000 | 1,100,000 | ||||||
|
| |||||||
7,855,000 | ||||||||
New York 5.1% |
| |||||||
New York, State Energy Research & Development Authority Facilities Revenue, Consolidated Edison Co., SeriesC-2, AMT, 2.45%*, 5/7/2019, LOC: Mizuho Bank Ltd. | 690,000 | 690,000 | ||||||
New York, State Thruway Authority Revenue,Series 2016-XF2345, 144A, 2.33%*, 5/7/2019, LIQ: Credit Suisse | 1,865,000 | 1,865,000 | ||||||
New York City, NY, Industrial Development Agency, Civic Facility Revenue, Jamaica First Parking LLC Project, 2.32%*, 5/7/2019, LOC: TD Bank NA | 1,185,000 | 1,185,000 | ||||||
New York City, NY, Municipal Finance Authority, Water & Sewer Systems Revenue, SeriesF-2, 2.13%*, 5/7/2019, SPA: JPMorgan Chase Bank NA | 3,470,000 | 3,470,000 | ||||||
New York City, NY, Municipal Water Finance Authority, Water & Sewer Systems Revenue, Second Generation Resolution, SeriesBB-1, 2.38%*, 5/7/2019, SPA: IND & Commercial Bank of China BA | 5,750,000 | 5,750,000 | ||||||
New York City, NY, Transitional Finance Authority Revenue, Future Tax Secured, SeriesA-2A, 2.3%*, 5/2/2019, LOC: Bank Tokyo-Mitsubishi UFJ | 825,000 | 825,000 | ||||||
New York, NY, General Obligation, SeriesJ-6, 2.32%*, 5/1/2019, LOC: Landesbank Hessen-Thuringen | 830,000 | 830,000 | ||||||
New York, NY, State General Obligation, SeriesA-3, 2.31%*, 5/1/2019, SPA: Landesbank Hessen-Thuringen | 175,000 | 175,000 | ||||||
Westchester County, NY, Industrial Development Agency, Civic Facility Revenue, Jewish Project, 2.3%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 100,000 | 100,000 | ||||||
|
| |||||||
14,890,000 | ||||||||
North Carolina 0.9% |
| |||||||
North Carolina, State Capital Facilities Finance Agency Student Revenue, Housing NCA&T University Foundation Project, Series B, 2.37%*, 5/7/2019, INS: AGC, LOC: PNC Bank NA | 2,575,000 | 2,575,000 |
The accompanying notes are an integral part of the financial statements.
Tax-Free Investment Class | | | 13 |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Ohio 6.6% |
| |||||||
Cuyahoga County, OH, Health Care Facilities Revenue, AM McGregor Home Project, 2.38%*, 5/7/2019, LOC: Northern Trust Company | 12,400,000 | 12,400,000 | ||||||
Franklin County, OH, Trinity Health Credit Group, 1.7%**, 12/1/2046 | 5,000,000 | 5,000,000 | ||||||
Hamilton County, OH, Economic Development Revenue, St Xavier High School Project, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 1,695,000 | 1,695,000 | ||||||
|
| |||||||
19,095,000 | ||||||||
Oklahoma 1.3% |
| |||||||
Oklahoma, Tender Option Bond Trust Floaters,Series 2018-XM0708, 144A, AMT, 2.48%*, 5/7/2019, LIQ: JPMorgan Chase Bank NA | 3,750,000 | 3,750,000 | ||||||
Pennsylvania 4.4% |
| |||||||
Butler County, PA, General Authority Revenue, School District Project, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 1,500,000 | 1,500,000 | ||||||
Lancaster, PA, Industrial Development Authority, Willow Valley Retirement, Series C, 2.37%*, 5/7/2019, LOC: PNC Bank NA | 2,500,000 | 2,500,000 | ||||||
Pennsylvania, State Economic Development Financing Authority Revenue, Hawley Silk Mill LLC, Recovery Zone Facility, Series A1, 2.39%*, 5/7/2019, LOC: PNC Bank NA | 300,000 | 300,000 | ||||||
Pennsylvania, Tender Option Bond Trust,Series 2019-ZF2779, 2.33%*, 5/7/2019, LIQ: Barclays Bank PLC | 1,500,000 | 1,500,000 | ||||||
Philadelphia, PA, Airport Revenue, SeriesB-2, TECP, 1.72%, 5/31/2019 | 7,000,000 | 7,000,000 | ||||||
|
| |||||||
12,800,000 | ||||||||
Rhode Island 0.2% |
| |||||||
Rhode Island, State Health & Educational Building Corp., Higher Education Facility Revenue, Roger Williams University, Series A, 2.18%*, 5/7/2019, LOC: U.S. Bank NA | 520,000 | 520,000 | ||||||
South Carolina 0.1% |
| |||||||
North Charleston, SC, Certificates of Participation, 2.26%*, 5/7/2019, LOC: Bank of America NA | 355,000 | 355,000 | ||||||
South Dakota 0.7% |
| |||||||
South Dakota, State Health & Educational Facilities Authority, Sioux Valley Hospital & Health: | ||||||||
Series B, 2.15%*, 5/7/2019, LOC: U.S. Bank NA | 425,000 | 425,000 | ||||||
Series C, 2.15%*, 5/7/2019, LOC: U.S. Bank NA | 1,485,000 | 1,485,000 | ||||||
|
| |||||||
1,910,000 |
The accompanying notes are an integral part of the financial statements.
14 | | | Tax-Free Investment Class |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Tennessee 0.3% |
| |||||||
Loudon, TN, Industrial Development Board, Pollution Control Revenue, 2.4%*, 5/7/2019, LOC: Citibank NA | 300,000 | 300,000 | ||||||
Shelby County, TN, Health Educational & Housing Facilities Board, Multi-Family Housing Revenue, 2.4%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 600,000 | 600,000 | ||||||
|
| |||||||
900,000 | ||||||||
Texas 7.7% |
| |||||||
Austin, TX, Water & Wastewater Systems Revenue, 2.32%*, 5/7/2019, LOC: Barclays Bank PLC | 2,225,000 | 2,225,000 | ||||||
Harris County, TX, Houston Port Authority: |
| |||||||
1.66%, 5/16/2019 | 3,600,000 | 3,600,000 | ||||||
1.74%, 6/6/2019 | 205,000 | 205,000 | ||||||
1.8%, 6/6/2019 | 5,500,000 | 5,500,000 | ||||||
Houston, TX, Utility Systems Revenue, First Lien, SeriesB-5, 2.32%*, 5/7/2019, LOC: Wells Fargo Bank NA | 590,000 | 590,000 | ||||||
Houston, TX, General Obligation Notes, SeriesE-1, TECP, 1.71%, 6/25/2019 | 2,000,000 | 2,000,000 | ||||||
Tarrant County, TX, Cultural Educational Facilities Finance Corp. Revenue, Christus Health Obligated Group,Series C-2, 2.4%*, 5/7/2019, LOC: Bank of NY Mellon | 850,000 | 850,000 | ||||||
Tarrant County, TX, Housing Finance Corp., Multifamily Housing Gateway Apartments, 2.4%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 375,000 | 375,000 | ||||||
Texas, State Variable Veternas: |
| |||||||
Series B, 2.15%*, 5/7/2019, SPA: Federal Home Loan Bank | 490,000 | 490,000 | ||||||
Series C, 2.44%*, 5/7/2019, SPA: LandesbankHessen-Thuringen | 445,000 | 445,000 | ||||||
Texas, Tender Option Bond Trust Receipts,Series 2015-XF2201, 144A, 2.33%*, 5/7/2019, LIQ: Citibank NA | 3,100,000 | 3,100,000 | ||||||
Texas State, Tax & Revenue Anticipation Notes, 4.0%, 8/29/2019 | 3,000,000 | 3,019,647 | ||||||
|
| |||||||
22,399,647 | ||||||||
Vermont 0.1% |
| |||||||
Vermont, State Educational & Health Buildings Financing Agency Revenue, Hospital Fletcher Allen, Series A, 2.39%*, 5/7/2019, LOC: TD Bank North NA | 400,000 | 400,000 | ||||||
Virginia 0.4% |
| |||||||
Loudoun County, VA, Industrial Development Authority Revenue, Jack Kent Cooke Foundation Project, 2.3%*, 5/7/2019, LOC: Northern Trust Company | 650,000 | 650,000 |
The accompanying notes are an integral part of the financial statements.
Tax-Free Investment Class | | | 15 |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Salem, VA, Industrial Development Authority, Multi-Family Housing Revenue, Oak Park Apartments Project, 2.3%*, 5/7/2019, LIQ: Fannie Mae, LOC: Fannie Mae | 535,000 | 535,000 | ||||||
|
| |||||||
1,185,000 | ||||||||
Washington 0.8% |
| |||||||
King County, WA, Sewer Revenue, Junior Lien, Series A, 2.4%*, 5/7/2019, LOC: Landesbank Hessen-Thuringen | 530,000 | 530,000 | ||||||
Olympia, WA, Economic Development Corp., Spring Air Northwest Project, AMT, 2.38%*, 5/7/2019, LOC: U.S. Bank NA | 960,000 | 960,000 | ||||||
Washington, State Housing Finance Commission, Panorma City Project, 2.4%*, 5/7/2019, LOC: Wells Fargo Bank NA | 490,000 | 490,000 | ||||||
Washington, State Housing Finance Commission, Vintage of Central Airports Project, 2.42%*, 5/7/2019, LIQ: Freddie Mac, LOC: Freddie Mac | 325,000 | 325,000 | ||||||
|
| |||||||
2,305,000 | ||||||||
Wisconsin 3.9% |
| |||||||
Wisconsin, Whitewater Community Development Authority, Housing Preservation, 2.31%*, 5/7/2019, LOC: BMO Harris Bank NA | 7,455,000 | 7,455,000 | ||||||
Wisconsin, State General Obligation, Series05-A, TECP, 1.77%, 6/6/2019 | 1,800,000 | 1,800,000 | ||||||
Wisconsin, State Health & Education Facilities Authority, Ascension Health Alliance Senor Group, SeriesB-2, 4.0%*, 11/15/2043 | 1,545,000 | 1,547,870 | ||||||
Wisconsin, State Health & Educational Facilities Authority Revenue, Mequon Jewish Project, 2.4%*, 5/7/2019, LOC: JPMorgan Chase Bank NA | 475,000 | 475,000 | ||||||
|
| |||||||
11,277,870 | ||||||||
Other 2.6% |
| |||||||
Federal Home Loan Mortgage Corp., Multi-Family Variable Rate Certificates: | ||||||||
“A”, Series MO27, 2.32%*, 5/7/2019, LIQ: Freddie Mac | 2,815,000 | 2,815,000 | ||||||
“A”, Series M031, 2.33%*, 5/7/2019, LIQ: Freddie Mac | 2,960,000 | 2,960,000 | ||||||
Series M033, 2.33%*, 5/7/2019, LIQ: Freddie Mac | 815,000 | 815,000 | ||||||
“A”, Series M015, AMT, 2.35%*, 5/7/2019, LIQ: Freddie Mac | 1,065,000 | 1,065,000 | ||||||
|
| |||||||
7,655,000 | ||||||||
Total Municipal Investments(Cost $276,264,630) | 276,264,630 |
The accompanying notes are an integral part of the financial statements.
16 | | | Tax-Free Investment Class |
Table of Contents
Principal Amount ($) | Value ($) | |||||||
Preferred Shares ofClosed-End Investment Companies 4.8% |
| |||||||
California | ||||||||
California, Nuveen Dividend Advantage Municipal Fund, Series1-1362, 144A, AMT, 2.43%*, 5/7/2019, LIQ: Societe Generale | 9,000,000 | 9,000,000 | ||||||
California, Nuveen Dividend Advantage Municipal Fund, Series 6, 144A, AMT, 2.43%*, 5/7/2019, LIQ: Citibank NA | 1,500,000 | 1,500,000 | ||||||
California, Nuveen Quality Municipal Income Fund, Series 7, 144A, AMT, 2.44%*, 5/7/2019, LIQ: Royal Bank of Canada | 3,500,000 | 3,500,000 | ||||||
| ||||||||
Total Preferred Shares ofClosed-End Investment Companies |
| 14,000,000 | ||||||
% of Net Assets | Value ($) | |||||||
Total Investment Portfolio(Cost $290,264,630) | 99.6 | 290,264,630 | ||||||
Other Assets and Liabilities, Net | 0.4 | 1,284,563 | ||||||
| ||||||||
Net Assets | 100.0 | 291,549,193 |
* | Variable rate demand notes and variable rate demand preferred shares are securities whose interest rates are reset periodically (usually daily mode or weekly mode) by remarketing agents based on current market levels, and are not directly set as a fixed spread to a reference rate. These securities may be redeemed at par by the holder at any time, and are shown at their current rates as of April 30, 2019. Date shown reflects the earlier of demand date or stated maturity date. |
** | Floating rate security. These securities are shown at their current rate as of April 30, 2019. |
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.
AGC: Assured Guaranty Corp.
AMT: Subject to alternative minimum tax.
GTY: Guaranty Agreement
LIQ: Liquidity Facility
LOC: Letter of Credit
MUNIPSA: SIFMA Municipal Swap Index Yield
SPA: Standby Bond Purchase Agreement
TECP: Tax Exempt Commercial Paper
The accompanying notes are an integral part of the financial statements.
Tax-Free Investment Class | | | 17 |
Table of Contents
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Securities held by the Fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Municipal Investments (a) | $ | �� — | $ | 276,264,630 | $ | — | $ | 276,264,630 | ||||||||
Preferred Shares ofClosed-End Investment Companies | — | 14,000,000 | — | 14,000,000 | ||||||||||||
Total | $ | — | $ | 290,264,630 | $ | — | $ | 290,264,630 |
(a) | See Investment Portfolio for additional detailed categorizations. |
The accompanying notes are an integral part of the financial statements.
18 | | | Tax-Free Investment Class |
Table of Contents
Statement of Assets and Liabilities
as of April 30, 2019 | ||||
Assets | | DWS Tax-Exempt Portfolio | ||
Investments in securities, valued at amortized cost | $ | 290,264,630 | ||
Cash | 17,977 | |||
Receivable for investments sold | 200,000 | |||
Receivable for Fund shares sold | 186,784 | |||
Interest receivable | 1,254,804 | |||
Other assets | 58,489 | |||
Total assets | 291,982,684 | |||
Liabilities | ||||
Payable for Fund shares redeemed | 158,192 | |||
Distributions payable | 59,128 | |||
Accrued Trustees’ fees | 4,011 | |||
Other accrued expenses and payables | 212,160 | |||
Total liabilities | 433,491 | |||
Net assets, at value | $ | 291,549,193 | ||
Net Assets Consist of | ||||
Distributable earnings (loss) | (50,568 | ) | ||
Paid-in capital | 291,599,761 | |||
Net assets, at value | $ | 291,549,193 |
The accompanying notes are an integral part of the financial statements.
Tax-Free Investment Class | | | 19 |
Table of Contents
Statement of Assets and Liabilitiesas of April 30, 2019 (continued) |
Net Asset Value | | DWS Tax-Exempt Portfolio | | |
DWSTax-Exempt Cash Premier Shares | ||||
Net Asset Value, offering and redemption price per share ($49,478,536 ÷ 49,454,148 outstanding shares of beneficial interest, | $ | 1.00 | ||
DWSTax-Exempt Money Fund | ||||
Net Asset Value, offering and redemption price per share ($124,352,933 ÷ 124,291,658 outstanding shares of beneficial interest, | $ | 1.00 | ||
DWSTax-Free Money Fund Class S | ||||
Net Asset Value, offering and redemption price per share ($51,658,888 ÷ 51,633,423 outstanding shares of beneficial interest, | $ | 1.00 | ||
Service Shares | ||||
Net Asset Value, offering and redemption price per share ($13,841,671 ÷ 13,834,843 outstanding shares of beneficial interest, | $ | 1.00 | ||
Tax-Exempt Cash Managed Shares | ||||
Net Asset Value, offering and redemption price per share ($45,759,204 ÷ 45,736,619 outstanding shares of beneficial interest, | $ | 1.00 | ||
Tax-Free Investment Class | ||||
Net Asset Value, offering and redemption price per share ($6,457,961 ÷ 6,454,777 outstanding shares of beneficial interest, | $ | 1.00 |
The accompanying notes are an integral part of the financial statements.
20 | | | Tax-Free Investment Class |
Table of Contents
for the year ended April 30, 2019 |
| |||
Investment Income | | DWS Tax-Exempt Portfolio | | |
Income: | ||||
Interest | $ | 4,696,916 | ||
Expenses: | ||||
Management fee | 231,341 | |||
Administration fee | 303,403 | |||
Services to shareholders | 218,706 | |||
Distribution and service fees | 260,297 | |||
Custodian fee | 11,040 | |||
Professional fees | 119,852 | |||
Reports to shareholders | 114,292 | |||
Registration fees | 123,397 | |||
Trustees’ fees and expenses | 14,414 | |||
Other | 68,666 | |||
Total expenses before expense reductions | 1,465,408 | |||
Expense reductions | (447,709 | ) | ||
Total expenses after expense reductions | 1,017,699 | |||
Net investment income | 3,679,217 | |||
Net realized gain (loss) from investments | 16,792 | |||
Net increase (decrease) in net assets resulting from operations | $ | 3,696,009 |
The accompanying notes are an integral part of the financial statements.
Tax-Free Investment Class | | | 21 |
Table of Contents
Statements of Changes in Net Assets
DWSTax-Exempt Portfolio | ||||||||
Years Ended April 30, | ||||||||
Increase (Decrease) in Net Assets | 2019 | 2018 | ||||||
Operations: | ||||||||
Net investment income | $ | 3,679,217 | $ | 2,423,950 | ||||
Net realized gain (loss) | 16,792 | 2,158 | ||||||
Net increase in net assets resulting from operations | 3,696,009 | 2,426,108 | ||||||
Distributions to shareholders: | ||||||||
DWSTax-Exempt Cash Premier Shares | (554,487 | ) | (430,286 | ) | ||||
DWSTax-Exempt Money Fund | (1,689,303 | ) | (1,163,840 | ) | ||||
DWSTax-Free Money Fund Class S | (640,705 | ) | (413,013 | ) | ||||
Service Shares | (115,693 | ) | (36,384 | ) | ||||
Tax-Exempt Cash Managed Shares | (607,973 | ) | (364,721 | ) | ||||
Tax-Free Investment Class | (58,355 | ) | (28,399 | ) | ||||
Total distributions | (3,666,516 | ) | (2,436,643 | )* | ||||
Fund share transactions: | ||||||||
Proceeds from shares sold | 459,762,725 | 550,268,409 | ||||||
Reinvestment of distributions | 2,971,761 | 1,998,663 | ||||||
Payments for shares redeemed | (485,955,370 | ) | (576,644,724 | ) | ||||
Net increase (decrease) in net assets from Fund share transactions | (23,220,884 | ) | (24,377,652 | ) | ||||
Increase (decrease) in net assets | (23,191,391 | ) | (24,388,187 | ) | ||||
Net assets at beginning of period | 314,740,584 | 339,128,771 | ||||||
Net assets at end of period | $ | 291,549,193 | $ | 314,740,584 | ** |
* | Includes distributions from net investment income. |
** | Includes distributions in excess of net investment income of $47,775 |
The accompanying notes are an integral part of the financial statements.
22 | | | Tax-Free Investment Class |
Table of Contents
DWSTax-Exempt Portfolio
Tax-Free Investment Class
Years Ended April 30, | ||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||
Selected Per Share Data | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||||
Income (loss) from investment operations: |
| |||||||||||||||||||||
Net investment income | .010 | .004 | .001 | .000 | * | .000 | * | |||||||||||||||
Net realized gain (loss) | .000 | * | .000 | * | (.000 | )* | .000 | * | .000 | * | ||||||||||||
Total from investment operations | .010 | .004 | .001 | .000 | * | .000 | * | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||
Net investment income | (.010 | ) | (.004 | ) | (.001 | ) | (.000 | )* | (.000 | )* | ||||||||||||
Net realized gains | — | — | (.000 | )* | (.000 | )* | (.000 | )* | ||||||||||||||
Total distributions | (.010 | ) | (.004 | ) | (.001 | ) | (.000 | )* | (.000 | )* | ||||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||||
Total Return (%)a | .96 | .45 | .13 | .02 | .03 | |||||||||||||||||
Ratios to Average Net Assets and Supplemental Data |
| |||||||||||||||||||||
Net assets, end of period ($ millions) | 6 | 6 | 9 | 239 | 263 | |||||||||||||||||
Ratio of expenses before expense reductions (%) | .74 | .72 | .66 | .66 | .64 | |||||||||||||||||
Ratio of expenses after expense reductions (%) | .59 | .63 | .49 | .14 | .10 | |||||||||||||||||
Ratio of net investment income (%) | .96 | .39 | .02 | .01 | .01 |
a | Total return would have been lower had certain expenses not been reduced. |
* | Amount is less than $.0005. |
The accompanying notes are an integral part of the financial statements.
Tax-Free Investment Class | | | 23 |
Table of Contents
Notes to Financial Statements |
A. 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 anopen-end management investment company organized as a Massachusetts business trust.
The Trust offers two funds: DWS Government & Agency Securities Portfolio (formerly Deutsche Government & Agency Securities Portfolio) and DWSTax-Exempt Portfolio (formerly Deutsche Tax-Exempt Portfolio). These financial statements report on DWSTax-Exempt Portfolio (the “Fund”).
DWSTax-Exempt Portfolio offers six classes of shares: DWSTax-Exempt Cash Premier Shares (formerly Deutsche Tax-Exempt Cash Premier Shares), DWSTax-Exempt Money Fund (formerly Deutsche Tax-Exempt Money Fund), DWSTax-Free Money Fund Class S (formerly Deutsche Tax-Free Money Fund Class S), Service Shares,Tax-Exempt Cash Managed Shares andTax-Free Investment Class.
The financial highlights for all classes of shares, other thanTax-Free Investment Class, are provided separately and are available upon request.
The Fund’s investment income, realized gains and losses, and certain Fund-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares of the Fund, 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.
The Fund’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which require the use of management estimates. Actual results could differ from those estimates. The Fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of U.S. GAAP. The policies described below are followed consistently by the Fund in the preparation of its financial statements.
In October 2018, the Securities and Exchange Commission adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification, which is intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. Effective with the current reporting period, the
24 | | | Tax-Free Investment Class |
Table of Contents
Fund adopted the amendments with the impacts being that the Fund is no longer required to present components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributable earnings and the amount of undistributed net investment income on the Statements of Changes in Net Assets.
Security Valuation. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The Fund values all securities utilizing the amortized cost method permitted in accordance with Rule2a-7 under the 1940 Act and certain conditions therein. Under this method, which does not take into account unrealized capital gains or losses on securities, an instrument is initially valued at its cost and thereafter assumes a constant accretion/amortization rate to maturity of any discount or premium. Securities held by the Fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.
Disclosure about the classification of fair value measurements is included in a table following the Fund’s Investment Portfolio.
Federal Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies and to distribute all of its taxable andtax-exempt income to its shareholders.
At April 30, 2019, the Fund had a net tax basis capital loss carryforward of approximately $15,000, which may be applied against any realized net taxable capital gains indefinitely.
The Fund has reviewed the tax positions for the open tax years as of April 30, 2019 and has determined that no provision for income tax and/or uncertain tax positions is required in the Fund’s financial statements. The Fund’s federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service.
Distribution of Income. Net investment income of the Fund is declared as a daily dividend and is distributed to shareholders monthly. The Fund may take into account capital gains and losses in its daily dividend declarations. The Fund may also make additional distributions for tax purposes if necessary.
Tax-Free Investment Class | | | 25 |
Table of Contents
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 nobook-to-tax differences for the Fund.
At April 30, 2019, the Fund’s components of distributable earnings (accumulated losses) on a tax basis are as follows:
DWSTax-Exempt Portfolio: | ||||
Undistributed tax-exempt income | $ | 24,054 | ||
Capital loss carryforwards | $ | (15,000 | ) |
At April 30, 2019, DWSTax-Exempt Portfolio had an aggregate cost of investments for federal income tax purposes of $290,264,630.
In addition, the tax character of distributions paid to shareholders by the Fund is summarized as follows:
Years Ended April 30, | ||||||||
Portfolio | 2019 | 2018 | ||||||
DWSTax-Exempt Portfolio: | ||||||||
Distributions fromtax-exempt income | $ | 3,666,516 | $ | 2,436,643 |
Expenses. Expenses of the Trust arising in connection with a specific Fund are allocated to that Fund. Other Trust expenses which cannot be directly attributed to a Fund are apportioned pro rata on the basis of relative net assets among the funds in the Trust.
Contingencies. In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.
Other. Investment transactions are accounted for on trade date. Interest income is recorded on the accrual basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. All discounts and premiums are accreted/amortized for both tax and financial reporting purposes.
B. Related Parties
Management Agreement. Under an Amended and Restated Investment Management Agreement with DWS Investment Management Americas, Inc. (formerly Deutsche Investment Management Americas Inc.) (“DIMA” or the “Advisor”), an indirect, wholly owned subsidiary of DWS Group GmbH & Co. KGaA (“DWS Group”), the Advisor directs the investments of the Fund in accordance with its investment objectives, policies and
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restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Fund.
The monthly management fee for the Fund is computed based on the combined average daily net assets of the two funds of the Trust and allocated to the Fund based on its relative net assets, computed and accrued daily and payable monthly, at the following annual rates:
First $500 million of the Funds’ 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% |
Accordingly, for the year ended April 30, 2019, the fee pursuant to the Investment Management Agreement on DWS Tax-Exempt Portfolio was equivalent to an annual rate (exclusive of any applicable waivers/reimbursements) of 0.08% of the Fund’s average daily net assets.
For the period from May 1, 2018 through September 30, 2019, the Advisor has contractually agreed to waive its fees and/or reimburse certain operating expenses of theTax-Free Investment Class to the extent necessary to maintain the total annual operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest) at 0.72%.
In addition, the Advisor has agreed to voluntarily waive additional expenses. The voluntary waiver may be changed or terminated at any time without notice. Under these arrangements, the Advisor waived certain expenses onTax-Free Investment Class Shares.
In addition, the Advisor has also agreed to maintain expenses of certain other classes of the Trust. These rates are disclosed in the respective share classes’ annual reports that are provided separately and are available upon request.
For the year ended April 30, 2019, fees waived and/or expenses
reimbursed for each class are as follows:
DWS Tax-Exempt Cash Premier Shares | $ | 57,460 | ||
DWS Tax-Exempt Money Fund | 202,120 | |||
DWS Tax-Free Money Fund Class S | 68,543 | |||
Service Shares | 35,522 | |||
Tax-Exempt Cash Managed Shares | 75,471 | |||
Tax-Free Investment Class | 8,593 | |||
$ | 447,709 |
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Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays the Advisor an annual fee (“Administration Fee”) of 0.10% of the Fund’s average daily net assets, computed and accrued daily and payable monthly. For the year ended April 30, 2019, the Administration Fee was as follows:
Fund | Administration Fee | Unpaid at April 30, 2019 | ||||||
DWSTax-Exempt Portfolio | $ | 303,403 | $ | 23,594 |
Service Provider Fees. DWS Service Company (“DSC”), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent for the Fund. Pursuant to asub-transfer agency agreement between DSC and DST Systems, Inc. (“DST”), DSC has delegated certain transfer agent, dividend-paying agent and shareholder service agent functions to DST. DSC compensates DST out of the shareholder servicing fee it receives from the Fund. For the year ended April 30, 2019, the amounts charged to the Fund by DSC were as follows:
DWS Tax-Exempt Portfolio: | Total Aggregated | Unpaid at April 30, 2019 | ||||||
DWSTax-Exempt Cash Premier Shares | $ | 2,663 | $ | 690 | ||||
DWSTax-Exempt Money Fund | 36,405 | 6,015 | ||||||
DWSTax-Free Money Fund Class S | 29,938 | 4,955 | ||||||
Service Shares | 67,885 | 4,268 | ||||||
Tax-Exempt Cash Managed Shares | 31,160 | 3,758 | ||||||
Tax-Free Investment Class | 5,004 | 859 | ||||||
$ | 173,055 | $ | 20,545 |
In addition, for the year ended April 30, 2019, the amounts charged to the Fund for recordkeeping and other administrative services provided by unaffiliated third parties, included in the Statement of Operations under “Services to shareholders,” were as follows:
Sub-Recordkeeping | Total Aggregated | |||
DWS Tax-Exempt Money Fund | $ | 18,316 | ||
DWS Tax-Free Money Fund Class S | 978 | |||
$ | 19,294 |
Distribution Service Agreement. Under the Distribution Service Agreement, in accordance with Rule12b-1 under the 1940 Act, DWS Distributors, Inc. (“DDI”), 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.
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For the year ended April 30, 2019, the Distribution Fee was as follows:
DWSTax-Exempt Portfolio: | Distribution Fee | Unpaid at April 30, 2019 | Annual Rate | Contractual Rate | ||||||||||||
Service Shares | $ | 161,991 | $ | 6,880 | .60 | % | .60 | % | ||||||||
Tax-Free Investment Class | 15,245 | 1,357 | .25 | % | .25 | % | ||||||||||
$ | 177,236 | $ | 8,237 |
In addition, DDI 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 Rule12b-1 plan.
For the year ended April 30, 2019, the Service Fee was as follows:
DWSTax-Exempt Portfolio: | Service Fee | Unpaid at April 30, 2019 | Annual Rate | Contractual Rate | ||||||||||||
Tax-Exempt Cash Managed Shares | $ | 78,792 | $ | 5,641 | .15 | % | .15 | % | ||||||||
Tax-Free Investment Class | 4,269 | 380 | .07 | % | .07 | % | ||||||||||
$ | 83,061 | $ | 6,021 |
Typesetting and Filing Service Fees. Under an agreement with the Fund, DIMA is compensated for providing certainpre-press and regulatory filing services to the Fund. For the year ended April 30, 2019, the amount charged to the Fund by DIMA included in the Statement of Operations under “Reports to shareholders” was as follows:
Fund | Total Aggregated | Unpaid at April 30, 2019 | ||||||
DWSTax-Exempt Portfolio | $ | 47,887 | $ | 21,973 |
Trustees’ Fees and Expenses. The Fund paid retainer fees to each Trustee not affiliated with the Advisor, plus specified amounts to the Board Chairperson and to each committee Chairperson.
Transactions with Affiliates. The Fund may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is solely due to having a common investment adviser, common officers, or common trustees. During the year ended April 30, 2019, the Fund engaged in securities purchases of $422,475,000 and securities sales of $564,985,000
with an affiliated fund in compliance with Rule17a-7 under the 1940 Act.
C. Line of Credit
The Fund and other affiliated funds (the “Participants”) share in a $400 million revolving credit facility provided by a syndication of banks. The Fund may borrow for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual
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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 theone-month LIBOR exceeds the Federal Funds Rate, the amount of such excess. The Fund may borrow up to a maximum of 33 percent of its net assets under the agreement. The Fund had no outstanding loans at April 30, 2019.
D. Fund Share Transactions
The following table summarizes share and dollar activity in the Fund:
DWSTax-Exempt Portfolio
Year Ended April 30, 2019 | Year Ended April 30, 2018 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Shares sold | ||||||||||||||||
DWSTax-Exempt Cash Premier Shares | 62,299,935 | $ | 62,299,935 | 67,725,230 | $ | 67,725,230 | ||||||||||
DWSTax-Exempt Money Fund | 34,172,341 | 34,172,341 | 51,423,925 | 51,423,925 | ||||||||||||
DWSTax-Free Money Fund Class S | 11,153,741 | 11,153,741 | 13,879,488 | 13,879,488 | ||||||||||||
Service Shares | 53,988,330 | 53,988,330 | 81,813,513 | 81,813,513 | ||||||||||||
Tax-Exempt Cash Managed Shares | 286,624,984 | 286,624,984 | 326,154,215 | 326,154,215 | ||||||||||||
Tax-Free Investment Class | 11,523,394 | 11,523,394 | 9,272,138 | 9,272,138 | ||||||||||||
Account Maintenance Fees | — | — | — | (100 | ) | |||||||||||
$ | 459,762,725 | $ | 550,268,409 | |||||||||||||
Shares issued to shareholders in reinvestment of distributions |
| |||||||||||||||
DWSTax-Exempt Cash Premier Shares | 537,230 | $ | 537,230 | 394,754 | $ | 394,754 | ||||||||||
DWSTax-Exempt Money Fund | 1,659,886 | 1,659,886 | 1,145,507 | 1,145,507 | ||||||||||||
DWSTax-Free Money Fund Class S | 607,214 | 607,214 | 392,467 | 392,467 | ||||||||||||
Service Shares | 108,406 | 108,406 | 36,362 | 36,362 | ||||||||||||
Tax-Exempt Cash Managed Shares | 1,638 | 1,638 | 1,571 | 1,571 | ||||||||||||
Tax-Free Investment Class | 57,387 | 57,387 | 28,002 | 28,002 | ||||||||||||
$ | 2,971,761 | $ | 1,998,663 |
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Year Ended April 30, 2019 | Year Ended April 30, 2018 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Shares redeemed |
| |||||||||||||||
DWSTax-Exempt Cash Premier Shares | (54,454,045 | ) | $ | (54,454,045 | ) | (64,594,618 | ) | $ | (64,594,618 | ) | ||||||
DWSTax-Exempt Money Fund | (47,917,455 | ) | (47,917,455 | ) | (59,547,276 | ) | (59,547,276 | ) | ||||||||
DWSTax-Free Money Fund Class S | (11,058,223 | ) | (11,058,223 | ) | (18,119,437 | ) | (18,119,437 | ) | ||||||||
Service Shares | (82,572,012 | ) | (82,572,012 | ) | (79,236,036 | ) | (79,236,036 | ) | ||||||||
Tax-Exempt Cash Managed Shares | (279,241,365 | ) | (279,241,365 | ) | (342,806,879 | ) | (342,806,879 | ) | ||||||||
Tax-Free Investment Class | (10,712,270 | ) | (10,712,270 | ) | (12,340,478 | ) | (12,340,478 | ) | ||||||||
$ | (485,955,370 | ) | $ | (576,644,724 | ) | |||||||||||
Net increase (decrease) |
| |||||||||||||||
DWSTax-Exempt Cash Premier Shares | 8,383,120 | $ | 8,383,120 | 3,525,366 | $ | 3,525,366 | ||||||||||
DWSTax-Exempt Money Fund | (12,085,228 | ) | (12,085,228 | ) | (6,977,844 | ) | (6,977,844 | ) | ||||||||
DWSTax-Free Money Fund Class S | 702,732 | 702,732 | (3,847,482 | ) | (3,847,482 | ) | ||||||||||
Service Shares | (28,475,276 | ) | (28,475,276 | ) | 2,613,839 | 2,613,839 | ||||||||||
Tax-Exempt Cash Managed Shares | 7,385,257 | 7,385,257 | (16,651,093 | ) | (16,651,093 | ) | ||||||||||
Tax-Free Investment Class | 868,511 | 868,511 | (3,040,338 | ) | (3,040,338 | ) | ||||||||||
Account Maintenance Fees | — | — | — | (100 | ) | |||||||||||
$ | (23,220,884 | ) | $ | (24,377,652 | ) |
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Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Cash Account Trust and Shareholders of DWSTax-Exempt Portfolio:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of DWSTax-Exempt Portfolio (formerly DeutscheTax-Exempt Portfolio) (the “Fund”) (one of the funds constituting Cash Account Trust) (the “Trust”), including the investment portfolio, as of April 30, 2019, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Cash Account Trust) at April 30, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are
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required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2019, by correspondence with the custodian and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies in the DWS family of funds since at least 1979, but we are unable to determine the specific year.
Boston, Massachusetts
June 19, 2019
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Information About Your Fund’s Expenses
As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service(12b-1) fees and other Fund expenses. Examples of transaction costs include account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recentsix-month period, the Fund limited these expenses; had it not done so, expenses would have been higher for theTax-Free Investment Class. The example in the table is based on an investment of $1,000 invested at the beginning of thesix-month period and held for the entire period (November 1, 2018 to April 30, 2019).
The tables illustrate your Fund’s expenses in two ways:
– | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
– | Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The “Expenses Paid per $1,000” line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. If these transaction costs had been included, your costs would have been higher.
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Expenses and Value of a $1,000 Investment for the six months ended April 30, 2019 (Unaudited) | ||||
Actual Fund Return | Tax-Free Investment Class | |||
Beginning Account Value 11/1/18 | $ | 1,000.00 | ||
Ending Account Value 4/30/19 | $ | 1,005.40 | ||
Expenses Paid per $1,000* | $ | 2.93 | ||
Hypothetical 5% Fund Return | ||||
Beginning Account Value 11/1/18 | $ | 1,000.00 | ||
Ending Account Value 4/30/19 | $ | 1,021.87 | ||
Expenses Paid per $1,000* | $ | 2.96 |
* | Expenses are equal to the Fund’s annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recentsix-month period), then divided by 365. |
Annualized Expense Ratio | ||||
Tax-Free Investment Class | .59% |
For more information, please refer to the Fund’s prospectus.
For an analysis of the fees associated with an investment in the Fund or similar funds, please refer to tools.finra.org/fund_analyzer/.
Tax Information | (Unaudited) |
Of the dividends paid from net investment income for the taxable year ended April 30, 2019, 100% are designated as exempt interest dividends for federal income tax purposes.
Please consult a tax advisor if you have questions about federal or state income tax laws, or on how to prepare your tax returns. If you have specific questions about your account, please call (800) 728-3337.
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Proxy Voting
The Fund’s policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 are available on our Web site —dws.com/en-us/resources/proxy-voting — or on the SEC’s Web site — sec.gov. To obtain a written copy of the Fund’s policies and procedures without charge, upon request, call us toll free at (800)728-3337.
Portfolio Holdings
Following the Fund’s fiscal first and thirdquarter-end, a complete portfolio holdings listing was filed with the SEC on FormN-Q. Effective from and after the Fund’s first fiscal quarter-end of 2019, Form N-Q is rescinded and will not be filed with the SEC. In addition, each month, information about the Fund and its portfolio holdings is filed with the SEC on FormN-MFP. The SEC delays the public availability of the information filed on FormN-MFP for 60 days after the end of the reporting period included in the filing. These forms will be available on the SEC’s Web site at sec.gov. The Fund’s portfolio holdings are also posted on dws.com as of each month-end. Please see the Fund’s current prospectus for more information.
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Advisory Agreement Board Considerations and Fee Evaluation
The Board of Trustees (hereinafter referred to as the “Board” or “Trustees”) approved the renewal of DWSTax-Exempt Portfolio’s (the “Fund”) investment management agreement (the “Agreement”) with DWS Investment Management Americas, Inc. (“DIMA”) in September 2018.
In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:
– | During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”). |
– | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board’s Contract Committee reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund���s Independent Trustees (the “Fee Consultant”). Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Board. The Board then reviewed the Contract Committee’s findings and recommendations. |
– | The Board also received extensive information throughout the year regarding performance of the Fund. |
– | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
– | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s Rule12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DIMA and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered, generally, that shareholders chose to invest or remain invested in the Fund knowing that DIMA managed the
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Fund. DIMA is part of DWS Group GmbH & Co. KGaA (“DWS Group”). DWS Group is a global asset management business that offers a wide range of investing expertise and resources, including research capabilities in many countries throughout the world. In 2018, approximately 20% of DWS Group’s shares were sold in an initial public offering, with Deutsche Bank AG owning the remaining shares.
As part of the contract review process, the Board carefully considered the fees and expenses of each DWS fund overseen by the Board in light of the fund’s performance. In many cases, this led to the negotiation and implementation of expense caps. As part of these negotiations, the Board indicated that it would consider relaxing these caps in future years following sustained improvements in performance, among other considerations.
While shareholders may focus primarily on fund performance and fees, the Fund’s Board considers these and many other factors, including the quality and integrity of DIMA’s personnel and administrative support services provided by DIMA, such as back-office operations, fund valuations, and compliance policies and procedures.
Nature, Quality and Extent of Services. The Board considered the terms of the Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DIMA provides portfolio management services to the Fund and that, pursuant to a separate administrative services agreement, DIMA provides administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel and the resources made available to such personnel. The Board reviewed the Fund’s performance over short-term and long-term periods and compared those returns to various agreed-upon performance measures, including a peer universe compiled using information supplied by iMoneyNet, an independent fund data service. The Board also noted that it has put into place a process of identifying “Funds in Review” (e.g., funds performing poorly relative to a peer universe), and receives additional reporting from DIMA regarding such funds and, where appropriate, DIMA’s plans to address underperformance. The Board believes this process is an effective manner of identifying and addressing underperforming funds. Based on the information provided, the Board noted that, for theone- and three-year periods ended December 31, 2017, the Fund’s gross performance (DWSTax-Exempt Cash Premier 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).
Fees and Expenses. The Board considered the Fund’s investment management fee schedule, operating expenses and total expense ratios, and comparative information provided by Broadridge Financial Solutions, Inc. (“Broadridge”) and the Fee Consultant regarding investment
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management fee rates paid to other investment advisors by similar funds (1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates paid by the Fund, which include a 0.10% fee paid to DIMA under the Fund’s administrative services agreement, were lower than the median (1st quartile) of the applicable Broadridge peer group (based on Broadridge data provided as of December 31, 2017). Based on Broadridge data provided as of December 31, 2017, the Board noted that the Fund’s total operating expenses (excluding12b-1 fees and/or shareholder administration fees, if applicable) were higher than the median (4th quartile) of the applicable Broadridge expense universe (less any applicable12b-1 fees) for the following share classes: Service Shares, DWSTax-Exempt Cash Premier Shares, Tax Free Investment Class shares,Tax-Exempt Cash Managed Shares, DWSTax-Exempt Money Fund shares and DWSTax-Free Money Fund Class S shares. The Board noted the expense limitations agreed to by DIMA. The Board also noted the voluntary fee waivers implemented by DIMA prior to December 31, 2017 to ensure the Fund maintained a positive yield. The Board considered the Fund’s management fee rate as compared to fees charged by DIMA to comparable DWS U.S. registered funds (“DWS Funds”), noting that DIMA indicated that it does not provide services to any other comparable DWS Funds. The information requested by the Board as part of its review of fees and expenses also included information about institutional accounts (including anysub-advised funds and accounts) and funds offered primarily to European investors (“DWS Europe Funds”) managed by DWS Group. The Board noted that DIMA indicated that DWS Group does not manage any institutional accounts or DWS Europe Funds comparable to the Fund.
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DIMA.
Profitability. The Board reviewed detailed information regarding revenues received by DIMA under the Agreement. The Board considered the estimated costs to DIMA, andpre-tax profits realized by DIMA, from advising the DWS Funds, as well as estimates of thepre-tax profits attributable to managing the Fund in particular. The Board also received information regarding the estimated enterprise-wide profitability of DIMA and its affiliates with respect to all fund services in totality and by fund. The Board and the Fee Consultant reviewed DIMA’s methodology in allocating its costs to the management of the Fund. Based on the information provided, the Board concluded that thepre-tax profits realized by DIMA in connection with the management of the Fund were not unreasonable. The Board also reviewed certain publicly available information regarding the profitability of certain similar investment
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management firms. The Board noted that, while information regarding the profitability of such firms is limited (and in some cases is not necessarily prepared on a comparable basis), DIMA and its affiliates’ overall profitability with respect to the DWS Funds (after taking into account distribution and other services provided to the funds by DIMA and its affiliates) was lower than the overall profitability levels of most comparable firms for which such data was available.
Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Fund and whether the Fund benefits from any economies of scale. The Board noted that the Fund’s investment management fee schedule includes fee breakpoints. The Board concluded that the Fund’s fee schedule represents an appropriate sharing between the Fund and DIMA of such economies of scale as may exist in the management of the Fund at current asset levels.
Other Benefits to DIMA and Its Affiliates. The Board also considered the character and amount of other incidental or“fall-out” benefits received by DIMA and its affiliates, including any fees received by DIMA for administrative services provided to the Fund, any fees received by an affiliate of DIMA for transfer agency services provided to the Fund and any fees received by an affiliate of DIMA for distribution services. The Board also considered benefits to DIMA related to brokerage and soft-dollar allocations, including allocating brokerage to pay for research generated by parties other than the executing broker dealers, which pertain primarily to funds investing in equity securities. In addition, the Board considered the incidental public relations benefits to DIMA related to DWS Funds advertising and cross-selling opportunities among DIMA products and services. The Board considered these benefits in reaching its conclusion that the Fund’s management fees were reasonable.
Compliance. The Board considered the significant attention and resources dedicated by DIMA to its compliance processes in recent years. The Board noted in particular (i) the experience, seniority and time commitment of the individuals serving as DIMA’s and the Fund’s chief compliance officers and (ii) the substantial commitment of resources by DIMA and its affiliates to compliance matters, including the retention of compliance personnel.
Based on all of the information considered and the conclusions reached, the Board unanimously determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Trustees and counsel present. It is possible that individual Independent Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.
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The following table presents certain information regarding the Board Members and Officers of the Fund. Each Board Member’s year of birth is set forth in parentheses after his or her name. Unless otherwise noted, (i) each Board Member has engaged in the principal occupation(s) noted in the table for at least the most recent five years, although not necessarily in the same capacity; and (ii) the address of each Independent Board Member is c/o Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA02199-3600. Except as otherwise noted below, the term of office for each Board Member is until the election and qualification of a successor, or until such Board Member sooner dies, resigns, is removed or as otherwise provided in the governing documents of the Fund. Because the Fund does not hold an annual meeting of shareholders, each Board Member will hold office for an indeterminate period. The Board Members may also serve in similar capacities with other funds in the fund complex.
Independent Board Members | ||||||||
Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
Keith R. Fox, CFA (1954)
Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods importer and distributor); The Kennel Shop (retailer); former Chairman, National Association of Small Business Investment Companies; former Directorships: BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) (2011–2012) | 82 | — | |||||
John W. Ballantine (1946)
Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population well-being and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc. and Oak Brook Bank; Prisma Energy International; Public Radio International. Not-for-Profit Director/Trustee: Palm Beach Civic Association; Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago | 82 | Portland General Electric2 (utility company) (2003– present) |
Tax-Free Investment Class | | | 41 |
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Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
Henry P. Becton, Jr. (1943)
Board Member since 1990 | Vice Chair and former President, WGBH Educational Foundation. Directorships: Public Radio International; Public Radio Exchange (PRX); The Pew Charitable Trusts (charitable organization); Massachusetts Humane Society; Overseer of the New England Conservatory; former Directorships: Becton Dickinson and Company2 (medical technology company); Belo Corporation2 (media company); The PBS Foundation; Association of Public Television Stations; Boston Museum of Science; American Public Television; Concord Academy; New England Aquarium; Mass. Corporation for Educational Telecommunications; Committee for Economic Development; Public Broadcasting Service; Connecticut College; North Bennett Street School (Boston); American Documentary, Inc. (public media) | 82 | — | |||||
Dawn-Marie Driscoll (1946)
Board Member since 1987 | Emeritus Executive Fellow, Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988). Directorships: Advisory Board, Center for Business Ethics, Bentley University; Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 82 | — | |||||
Richard J. Herring (1946)
Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); Director, The Wharton Financial Institutions Center (since 1994); formerly: Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Formerly Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), and Nonexecutive Director of Barclays Bank DE (2010–2018) | 82 | Director, Aberdeen Japan Fund (since 2007) |
42 | | | Tax-Free Investment Class |
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Name, Year of Birth, Position with the Fund and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member | |||||
William McClayton (1944)
Board Member since 2004 | Private equity investor (since October 2009); previously, Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001–2009); Directorship: Board of Managers, YMCA of Metropolitan Chicago; formerly: Senior Partner, Arthur Andersen LLP (accounting) (1966–2001); Trustee, Ravinia Festival | 82 | — | |||||
Rebecca W. Rimel (1951)
Board Member since 1995 | President, Chief Executive Officer and Director, The Pew Charitable Trusts (charitable organization) (1994–present); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012) | 82 | Director, Becton Dickinson and Company2 (medical technology company) (2012– present); Director, BioTelemetry Inc.2(health care) (2009– present) | |||||
William N. Searcy, Jr. (1946)
Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2(telecommunications) (November 1989–September 2003); Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 82 | — | |||||
Jean Gleason Stromberg (1943)
Board Member since 1997 | Retired. Formerly, Consultant (1997–2001); Director, Financial Markets U.S. Government Accountability Office (1996–1997); Partner, Norton Rose Fulbright, L.L.P. (law firm) (1978–1996); former Directorships: The William and Flora Hewlett Foundation (charitable organization) (2000–2015); Service Source, Inc. (nonprofit), Mutual Fund Directors Forum (2002–2004), American Bar Retirement Association (funding vehicle for retirement plans) (1987–1990 and 1994–1996) | 82 | — |
Officers4 | ||
Name, Year of Birth, Position with the Fund and Length of Time Served5 | Business Experience and Directorships During the Past Five Years | |
Hepsen Uzcan6(1974)
President and Chief Executive Officer, 2017–present | Managing Director,3 DWS; Secretary, DWS USA Corporation (since March 2018); Assistant Secretary, DWS Distributors, Inc. (since June 25, 2018); Director and Vice President, DWS Service Company (since June 25, 2018); Assistant Secretary, DWS Investment Management Americas, Inc. (since June 25, 2018); and Director and President, DB Investment Managers, Inc. (since June 25, 2018); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019) |
Tax-Free Investment Class | | | 43 |
Table of Contents
Name, Year of Birth, Position with the Fund and Length of Time Served5 | Business Experience and Directorships During the Past Five Years | |
John Millette8(1962)
Vice President and Secretary, 1999–present | Director,3DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); and Director and Vice President, DWS Trust Company (2016–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017) | |
Diane Kenneally8,9(1966)
Chief Financial Officer and Treasurer, since 2018 | Director,3 DWS; formerly: Assistant Treasurer for the DWS funds (2007–2018) | |
Paul Antosca8(1957)
Assistant Treasurer, 2007–present | Director,3DWS | |
Sheila Cadogan8(1966)
Assistant Treasurer, 2017–present | Director,3DWS; Director and Vice President, DWS Trust Company (since 2018) | |
Scott D. Hogan8(1970)
Chief Compliance Officer, 2016–present | Director,3DWS | |
Caroline Pearson8(1962)
Chief Legal Officer, 2010–present | Managing Director,3DWS; formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); and Secretary, Deutsche AM Service Company (2010–2017) | |
Wayne Salit7(1967) Anti-Money Laundering Compliance Officer, 2014–present | Director,3 Deutsche Bank; and AML Officer, DWS Trust Company; formerly: Managing Director, AML Compliance Officer at BNY Mellon (2011–2014); and Director, AML Compliance Officer at Deutsche Bank (2004–2011) | |
Ciara Crawford10 (1984) Assistant Secretary, since February 8, 2019 | Associate, DWS (since 2015); previously, Legal Assistant at Accelerated Tax Solutions. |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Executive title, not a board directorship. |
4 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
5 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
6 | Address: 345 Park Avenue, New York, NY 10154. |
7 | Address: 60 Wall Street, New York, NY 10005. |
8 | Address: One International Place, Boston, MA 02110. |
9 | Appointed Treasurer and Chief Financial Officer effective July 2, 2018. |
10 | Address: 5022 Gate Parkway, Suite 400, Jacksonville, FL 32256. |
The Fund’s Statement of Additional Information (“SAI”) includes additional information about the Board Members. The SAI is available, without charge, upon request. If you would like to request a copy of the SAI, you may do so by calling the followingtoll-free number:(800) 728-3337.
44 | | | Tax-Free Investment Class |
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CATTEP-2
(R-027592-8 6/19)
ITEM 2. | CODE OF ETHICS |
As of the end of the period covered by this report, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR that applies to its Principal Executive Officer and Principal Financial Officer.
There have been no amendments to, or waivers from, a provision of the code of ethics during the period covered by this report that would require disclosure under Item 2.
A copy of the code of ethics is filed as an exhibit to this Form N-CSR. | |
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT |
The fund’s audit committee is comprised solely of trustees who are "independent" (as such term has been defined by the Securities and Exchange Commission ("SEC") in regulations implementing Section 407 of the Sarbanes-Oxley Act (the "Regulations")). The fund’s Board of Trustees has determined that there are several "audit committee financial experts" (as such term has been defined by the Regulations) serving on the fund’s audit committee including Mr. William McClayton, the chair of the fund’s audit committee. An “audit committee financial expert” is not an “expert” for any purpose, including for purposes of Section 11 of the Securities Act of 1933 and the designation or identification of a person as an “audit committee financial expert” does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. | |
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
Cash Account trust: DWS Government & Agency Portfolio
form n-csr disclosure re: AUDIT FEES
The following table shows the amount of fees that Ernst & Young LLP (“EY”), the Fund’s Independent Registered Public Accounting Firm, billed to the Fund during the Fund’s last two fiscal years. The Audit Committee approved in advance all audit services and non-audit services that EY provided to the Fund.
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Fund
Fiscal Year Ended April 30, | Audit Fees Billed to Fund | Audit-Related Fees Billed to Fund | Tax Fees Billed to Fund | All Other Fees Billed to Fund |
2019 | $88,464 | $0 | $8,323 | $0 |
2018 | $88,464 | $0 | $8,323 | $0 |
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers
The following table shows the amount of fees billed by EY to DWS Investment Management Americas, Inc. (“DIMA” or the “Adviser”), and any entity controlling, controlled by or under common control with DIMA (“Control Affiliate”) that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two fiscal years.
Fiscal Year Ended April 30, | Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund Service Providers |
2019 | $0 | $372,661 | $0 |
2018 | $0 | $208,775 | $0 |
The above “Tax Fees” were billed in connection with tax compliance services and agreed upon procedures.
Non-Audit Services
The following table shows the amount of fees that EY billed during the Fund’s last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that EY provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Fund’s operations and financial reporting. The Audit Committee requested and received information from EY about any non-audit services that EY rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating EY’s independence.
Fiscal Year Ended March 31, | Total (A) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund) (B) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) (C) | Total of (A), (B) and (C) |
2019 | $8,323 | $372,661 | $513,130 | $894,114 |
2018 | $8,323 | $208,775 | $0 | $217,098 |
All other engagement fees were billed for services in connection with agreed upon procedures and tax compliance for DIMA and other related entities.
Audit Committee Pre-Approval Policies and Procedures. Generally, each Fund’s Audit Committee must pre approve (i) all services to be performed for a Fund by a Fund’s Independent Registered Public Accounting Firm and (ii) all non-audit services to be performed by a Fund’s Independent Registered Public Accounting Firm for the DIMA Entities with respect to operations and financial reporting of the Fund, except that the Chairperson or Vice Chairperson of each Fund’s Audit Committee may grant the pre-approval for non-audit services described in items (i) and (ii) above for non-prohibited services for engagements of less than $100,000. All such delegated pre approvals shall be presented to each Fund’s Audit Committee no later than the next Audit Committee meeting.
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
According to the registrant’s principal Independent Registered Public Accounting Firm, substantially all of the principal Independent Registered Public Accounting Firm's hours spent on auditing the registrant's financial statements were attributed to work performed by full-time permanent employees of the principal Independent Registered Public Accounting Firm.
***
In connection with the audit of the 2018 and 2019 financial statements, the Fund entered into an engagement letter with EY. The terms of the engagement letter required by EY, and agreed to by the Audit Committee, include a provision mandating the use of mediation and arbitration to resolve any controversy or claim between the parties arising out of or relating to the engagement letter or services provided thereunder.
***
Pursuant to PCAOB Rule 3526, EY is required to describe in writing to the Fund’s Audit Committee, on at least an annual basis, all relationships between EY, or any of its affiliates, and the DWS Funds, including the Fund, or persons in financial reporting oversight roles at the DWS Funds that, as of the date of the communication, may reasonably be thought to bear on EY’s independence. Pursuant to PCAOB Rule 3526, EY has reported the matters set forth below that may reasonably be thought to bear on EY’s independence. With respect to each reported matter, individually and in the aggregate, EY advised the Audit Committee that, after careful consideration of the facts and circumstances and the applicable independence rules, it concluded that the matters do not and will not impair EY’s ability to exercise objective and impartial judgement in connection with the audits of the financial statements for the Fund and a reasonable investor with knowledge of all relevant facts and circumstances would conclude that EY has been and is capable of exercising objective and impartial judgment on all issues encompassed within EY’s audit engagements. EY also confirmed to the Audit Committee that it can continue act as the Independent Registered Public Accounting Firm for the Fund.
· | EY advised the Fund’s Audit Committee that various covered persons within EY’s affiliates held investments in, or had other financial relationships with, entities within the DWS Funds “investment company complex” (as defined in Regulation S-X) (the “DWS Funds Complex”). EY informed the Audit Committee that these investments and financial relationships were inconsistent with Rule 2-01(c)(1) of Regulation S-X. EY reported that all breaches have been resolved and that none of the breaches involved any investments in the Fund or any professionals who were part of the audit engagement team for the Fund or in a position to influence the audit engagement team. In addition, EY noted that the independence breaches did not (i) create a mutual or conflicting interest with the Fund, (ii) place EY in the position of auditing its own work, (iii) result in EY acting as management or an employee of the Fund, or (iv) place EY in a position of being an advocate of the Fund. |
· | EY advised the Fund’s Audit Committee of certain lending relationships of EY with owners of greater than 10% of the shares of certain investment companies within the DWS Funds Complex that EY had identified as inconsistent with Rule 2-01(c)(l)(ii)(A) of Regulation S-X (referred to as the “Loan Rule”). The Loan Rule specifically provides that an accounting firm would not be independent if it receives a loan from a lender that is a record or beneficial owner of more than ten percent of an audit client’s equity securities. For purposes of the Loan Rule, an audit client includes the Fund as well as all other investment companies in the DWS Funds Complex. EY’s lending relationships affect EY’s independence under the Loan Rule with respect to all investment companies in the DWS Funds Complex. |
EY stated its belief that, in each lending relationship, the lender is or was not able to impact the impartiality of EY or assert any influence over the investment companies in the DWS Funds Complex whose shares the lender owns or owned, or the applicable investment company’s investment adviser. In addition, on June 20, 2016, the SEC Staff issued a “no-action” letter to another mutual fund complex, Fidelity Management & Research Company et al., SEC Staff No-Action Letter (June 20, 2016) (the “Fidelity Letter”), related to similar Loan Rule issues as those described above. In the Fidelity Letter, the SEC Staff confirmed that it would not recommend enforcement action against an investment company that relied on the audit services performed by an audit firm that was not in compliance with the Loan Rule in certain specified circumstances. With respect to each lending relationship identified by EY, the circumstances described in the Fidelity Letter appear to be substantially similar to the circumstances that affected EY’s independence under the Loan Rule with respect to the Fund, and, in each case, EY confirmed to the Audit Committee that it meets the conditions of the Fidelity Letter.
Cash Account trust: DWS Tax Exempt Portfolio
form n-csr disclosure re: AUDIT FEES
The following table shows the amount of fees that Ernst & Young LLP (“EY”), the Fund’s Independent Registered Public Accounting Firm, billed to the Fund during the Fund’s last two fiscal years. The Audit Committee approved in advance all audit services and non-audit services that EY provided to the Fund.
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Fund
Fiscal Year Ended April 30, | Audit Fees Billed to Fund | Audit-Related Fees Billed to Fund | Tax Fees Billed to Fund | All Other Fees Billed to Fund |
2019 | $90,534 | $0 | $7,435 | $0 |
2018 | $90,534 | $0 | $7,435 | $0 |
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers
The following table shows the amount of fees billed by EY to DWS Investment Management Americas, Inc. (“DIMA” or the “Adviser”), and any entity controlling, controlled by or under common control with DIMA (“Control Affiliate”) that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two fiscal years.
Fiscal Year Ended April 30, | Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund Service Providers |
2019 | $0 | $372,661 | $0 |
2018 | $0 | $208,775 | $0 |
The above “Tax Fees” were billed in connection with tax compliance services and agreed upon procedures.
Non-Audit Services
The following table shows the amount of fees that EY billed during the Fund’s last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that EY provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Fund’s operations and financial reporting. The Audit Committee requested and received information from EY about any non-audit services that EY rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating EY’s independence.
Fiscal Year Ended March 31, | Total (A) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund) (B) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) (C) | Total of (A), (B) and (C) |
2019 | $7,435 | $372,661 | $513,130 | $893,226 |
2018 | $7,435 | $208,775 | $0 | $216,210 |
All other engagement fees were billed for services in connection with agreed upon procedures and tax compliance for DIMA and other related entities.
Audit Committee Pre-Approval Policies and Procedures. Generally, each Fund’s Audit Committee must pre approve (i) all services to be performed for a Fund by a Fund’s Independent Registered Public Accounting Firm and (ii) all non-audit services to be performed by a Fund’s Independent Registered Public Accounting Firm for the DIMA Entities with respect to operations and financial reporting of the Fund, except that the Chairperson or Vice Chairperson of each Fund’s Audit Committee may grant the pre-approval for non-audit services described in items (i) and (ii) above for non-prohibited services for engagements of less than $100,000. All such delegated pre approvals shall be presented to each Fund’s Audit Committee no later than the next Audit Committee meeting.
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
According to the registrant’s principal Independent Registered Public Accounting Firm, substantially all of the principal Independent Registered Public Accounting Firm's hours spent on auditing the registrant's financial statements were attributed to work performed by full-time permanent employees of the principal Independent Registered Public Accounting Firm.
***
In connection with the audit of the 2018 and 2019 financial statements, the Fund entered into an engagement letter with EY. The terms of the engagement letter required by EY, and agreed to by the Audit Committee, include a provision mandating the use of mediation and arbitration to resolve any controversy or claim between the parties arising out of or relating to the engagement letter or services provided thereunder.
***
Pursuant to PCAOB Rule 3526, EY is required to describe in writing to the Fund’s Audit Committee, on at least an annual basis, all relationships between EY, or any of its affiliates, and the DWS Funds, including the Fund, or persons in financial reporting oversight roles at the DWS Funds that, as of the date of the communication, may reasonably be thought to bear on EY’s independence. Pursuant to PCAOB Rule 3526, EY has reported the matters set forth below that may reasonably be thought to bear on EY’s independence. With respect to each reported matter, individually and in the aggregate, EY advised the Audit Committee that, after careful consideration of the facts and circumstances and the applicable independence rules, it concluded that the matters do not and will not impair EY’s ability to exercise objective and impartial judgement in connection with the audits of the financial statements for the Fund and a reasonable investor with knowledge of all relevant facts and circumstances would conclude that EY has been and is capable of exercising objective and impartial judgment on all issues encompassed within EY’s audit engagements. EY also confirmed to the Audit Committee that it can continue act as the Independent Registered Public Accounting Firm for the Fund.
· | EY advised the Fund’s Audit Committee that various covered persons within EY’s affiliates held investments in, or had other financial relationships with, entities within the DWS Funds “investment company complex” (as defined in Regulation S-X) (the “DWS Funds Complex”). EY informed the Audit Committee that these investments and financial relationships were inconsistent with Rule 2-01(c)(1) of Regulation S-X. EY reported that all breaches have been resolved and that none of the breaches involved any investments in the Fund or any professionals who were part of the audit engagement team for the Fund or in a position to influence the audit engagement team. In addition, EY noted that the independence breaches did not (i) create a mutual or conflicting interest with the Fund, (ii) place EY in the position of auditing its own work, (iii) result in EY acting as management or an employee of the Fund, or (iv) place EY in a position of being an advocate of the Fund. |
· | EY advised the Fund’s Audit Committee of certain lending relationships of EY with owners of greater than 10% of the shares of certain investment companies within the DWS Funds Complex that EY had identified as inconsistent with Rule 2-01(c)(l)(ii)(A) of Regulation S-X (referred to as the “Loan Rule”). The Loan Rule specifically provides that an accounting firm would not be independent if it receives a loan from a lender that is a record or beneficial owner of more than ten percent of an audit client’s equity securities. For purposes of the Loan Rule, an audit client includes the Fund as well as all other investment companies in the DWS Funds Complex. EY’s lending relationships affect EY’s independence under the Loan Rule with respect to all investment companies in the DWS Funds Complex. |
EY stated its belief that, in each lending relationship, the lender is or was not able to impact the impartiality of EY or assert any influence over the investment companies in the DWS Funds Complex whose shares the lender owns or owned, or the applicable investment company’s investment adviser. In addition, on June 20, 2016, the SEC Staff issued a “no-action” letter to another mutual fund complex, Fidelity Management & Research Company et al., SEC Staff No-Action Letter (June 20, 2016) (the “Fidelity Letter”), related to similar Loan Rule issues as those described above. In the Fidelity Letter, the SEC Staff confirmed that it would not recommend enforcement action against an investment company that relied on the audit services performed by an audit firm that was not in compliance with the Loan Rule in certain specified circumstances. With respect to each lending relationship identified by EY, the circumstances described in the Fidelity Letter appear to be substantially similar to the circumstances that affected EY’s independence under the Loan Rule with respect to the Fund, and, in each case, EY confirmed to the Audit Committee that it meets the conditions of the Fidelity Letter.
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS | |
Not applicable | ||
ITEM 6. | SCHEDULE OF INVESTMENTS | |
Not applicable | ||
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
Not applicable | ||
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
Not applicable | ||
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS | |
Not applicable | ||
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | |
There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board. The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA 02199-3600. | ||
ITEM 11. | CONTROLS AND PROCEDURES | |
(a) | The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report. | |
(b) | There have been no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting. | |
ITEM 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies | |
Not applicable | ||
ITEM 13. | EXHIBITS | |
(a)(1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. | |
(a)(2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. | |
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
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: | DWS Government & Agency Securities Portfolio and DWS Tax-Exempt Portfolio, each a series of Cash Account Trust |
By: | /s/Hepsen Uzcan Hepsen Uzcan President |
Date: | 7/2/2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Hepsen Uzcan Hepsen Uzcan President |
Date: | 7/2/2019 |
By: | /s/Diane Kenneally Diane Kenneally Chief Financial Officer and Treasurer |
Date: | 7/2/2019 |