UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSR
Investment Company Act file number 811-6073
SCUDDER CASH MANAGEMENT PORTFOLIO
---------------------------------
(Exact Name of Registrant as Specified in Charter)
One South Street, Baltimore, Maryland 21202
--------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (410) 895-5000
--------------
Daniel O. Hirsch, Esq.
One South Street
Baltimore, Maryland 21202
-----------------------------------------
(Name and Address of Agent for Service)
Date of fiscal year end: 12/31
Date of reporting period: 6/30/03
ITEM 1. REPORT TO STOCKHOLDERS
Cash Management Fund Investment
Treasury Money Fund Investment
Semiannual Report
to Shareholders
June 30, 2003
Deutsche Asset Management is the marketing name in the US for the asset management activities of Deutsche Bank AG, Deutsche Investment Management Americas Inc., Deutsche Asset Management Inc., Deutsche Asset Management Investment Services Ltd., Deutsche Bank Trust Company Americas and Scudder Trust Company.
This report must be preceded or accompanied by a prospectus. To obtain a prospectus for any of our funds, refer to the Account Management Resources information provided in the back of this booklet. The prospectus contains more complete information, including a description of the risks of investing in the fund, management fees and expenses. Please read it carefully before you invest or send money.
Fund shares are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Fund shares involve investment risk, including possible loss of principal.
Portfolio Management Review |
|
In the following interview, Lead Portfolio Manager Darlene M. Rasel discusses the market environment and her team's approach to managing the funds during the six-month period ended June 30, 2003.
Q: How did the funds perform over the semiannual period?
A: Over the six months ended June 30, 2003, Cash Management Fund Investment's seven-day annualized yield declined from 0.77% to 0.46%. The Treasury Money Fund Investment's seven-day annualized yield declined from 0.67% to 0.32%. In both cases, such yield changes primarily reflect the ripple effect of the Federal Reserve Board's 50-basis-point (i.e., one-half of a percentage point) interest rate cut on November 6, 2002. The Federal Reserve Board's 25-basis-point (i.e., one-quarter of a percentage point) cut on June 25, 2003 had only a modest impact on the funds' yield because the higher-yielding securities bought by the funds before the rate cut will continue to benefit the funds' yield until these securities mature. At maturity, the proceeds will be reinvested in securities that reflect the current level of rates, which is likely to be lower given the Federal Reserve Board rate cut. For the six-month period ended June 30, 2003, the Cash Management Fund Investment returned 0.30%, compared with the 0.29% average return of the iMoneyNet First Tier Retail Money Funds Average. The Treasury Money Fund Investment returned 0.26% for the semiannual period, compared with the 0.26% average return of the iMoneyNet US Treasury and Repo Retail Money Funds Average.1,2
1 iMoneyNet First Tier Retail Money Funds Average and US Treasury and Repo Retail Money Funds Average are provided by Money Fund Report Average, a service of iMoneyNet, Inc., and are an average for categories of similar money market funds.2 The yield quotation more closely reflects the current earnings of the money market fund than the total return quotation.Q: Until June 2003, the Federal Reserve Board held interest rates steady through the semiannual period. What dominated money market activity instead?
A: Federal Reserve Board policy still had a major impact on the backdrop to money market activity, as did the US economy.
As 2003 began, investors demonstrated enthusiasm for President George W. Bush's new economic growth initiative. However, as concerns about the war with Iraq heightened and company managements reported a subdued outlook for first-quarter corporate earnings, the US equity market stumbled again. Gross domestic product (GDP) growth managed to chug along at a rate of 1.4%, but geopolitical uncertainties kept volatility high. In this environment, there was a flight to quality into short-term US Treasuries. In March 2003, the Federal Reserve Board stated that it would not take a stance on monetary policy given "the unusually large uncertainties clouding the geopolitical situation in the short run and their apparent effects on economic decision making."
During the second quarter of 2003, economic and political conditions improved. A significant number of corporate earnings announcements during the quarter met or exceeded expectations. The $350 billion tax cut and spending incentives recently implemented offered stimulus to the economy. Also, while the journey to freedom and democracy in Iraq is by no means at an end, the conclusion of active military operations toward the end of April provided the financial markets with a welcome sigh of relief. On the other hand, corporate spending remained reluctant and unemployment gradually worsened, keeping consumer spending reined in, with the exception of the housing sector. As a result, estimates for second-quarter GDP remained in the 1.5% to 1.8% range.
On May 6, 2003, the Federal Reserve Board again kept the targeted federal funds rate3 unchanged at 1.25%, but made it clear that it would maintain its accommodative monetary policy. It believed the probability of deflation exceeded that of a pickup in inflation over the next few quarters. Thus, money market yields continued to fall.
3 The federal funds rate is the interest rate banks charge each other for overnight loans and is a closely watched indicator of US Federal Reserve Board monetary policy.Then, on June 25, 2003, the Federal Reserve Board cut the targeted federal funds rate by 25 basis points to 1.00% in an effort to further support the economy and stimulate more growth over a longer period. This was the 13th time since the start of 2001 that the Federal Reserve Board cut rates, bringing current interest rates to their lowest level since 1958.
Q: In light of recent market conditions, what has been the Cash Management Fund Investment's strategy?
A: Given the uncertainty in the financial markets and in the US economy, we maintained an aggressive average weighted maturity, generally in the 50- to 55-day range, in Cash Management Fund Investment for most of the semiannual period. As the period began, we maintained a "barbell strategy," whereby we purchased short-dated paper for liquidity and longer-term paper to add duration and to take advantage of the higher yields available at the long end of the money market yield curve. When the yield curve flattened in March 2003, we temporarily adjusted the strategy by focusing purchases at the intermediate portion of the money market yield curve.
During the second quarter 2003, the majority expectation among our money market portfolio management team was for a 25-basis-point rate cut. When, in the run-up to the June 25 meeting by the Federal Reserve Board, interest rates incorporated more than 25 basis points of cuts, we held off buying securities with longer-term maturities. While this led to a temporary reduction in the weighted average maturity of the fund to below 50 days, the decision proved correct. After the Federal Reserve Board's action, rates moved higher, and we used this opportunity to resume purchases of longer-dated securities at rates higher than available immediately before June 25. In addition, the yield curve became positively sloped again, making the purchases of longer-dated securities more attractive. Thus, the weighted average maturity of the fund should soon return to the higher end of its permitted range.
We added callable federal agency securities throughout the period. These securities offered an attractive yield increase over fixed-rate debt and, since they are guaranteed by the US government, enhanced the fund's average credit quality as well. Indeed, throughout the period, our preference for high credit quality issuers in the portfolio did not change.
Q: What was your strategy in Treasury Money Fund Investment?
A: We maintained a shorter-than-benchmark weighted average maturity, generally in the 45-day range, in Treasury Money Fund Investment for most of the period. During the first quarter 2003, we maintained larger positions in longer-dated US Treasury bills. Then, as in Cash Management Fund Investment, the majority expectation among our money market portfolio management team was for a 25-basis-point rate cut during the second quarter. When, in the months leading up to the June 25 meeting by the Federal Reserve Board, interest rates incorporated more than 25 basis points of cuts, we held off buying securities with longer-term maturities. Rather, we focused on purchases of overnight repurchase agreements. While this led to a temporary reduction in the weighted average maturity of the fund, the decision proved correct. After the Federal Reserve Board's action, rates moved higher, and we used this opportunity to resume purchases of longer-dated securities at rates higher than immediately before June 25. In addition, the money market yield curve became positively sloped again, making the purchases of longer-dated securities more attractive.
Q: Do you anticipate any change in your management strategies?
A: We intend to maintain our conservative investment strategies in both funds. We will seek to provide high current income consistent with liquidity and capital preservation.
The views expressed in this report reflect those of the portfolio managers only through the end of the period of the report as stated on the cover. The managers' views are subject to change at any time based on market and other conditions and should not be construed as a recommendation.
Statements of Assets and Liabilities as of June 30, 2003 (Unaudited) |
Assets
| Cash Management Fund Investment | Treasury Money Fund Investment |
Investment in Portfolioa
| $ 218,279,654 | $ 192,081,910 |
Receivable for Fund shares sold
| - | 7,082,011 |
Other assets
| - | 17,548 |
Total assets
| 218,279,654 | 199,181,469 |
Liabilities
|
Dividends payable
| 51,888 | 72,345 |
Payable for Fund shares redeemed
| - | 3,768,542 |
Accrued administrator service fee
| 77,159 | 84,097 |
Other accrued expenses and payables
| 36,907 | 12,002 |
Total liabilities
| 165,954 | 3,936,986 |
Net assets, at value
| $ 218,113,700 | $ 195,244,483 |
Net Assets
|
Net assets consist of:
Undistributed net investment income
| 43,928 | 21,678 |
Accumulated net realized gain (loss)
| 444 | 1,748 |
Paid-in capital
| 218,069,328 | 195,221,057 |
Net assets, at value
| $ 218,113,700 | $ 195,244,483 |
Net Asset Value
| | |
Net assets applicable to shares outstanding
| $ 218,113,700 | $ 195,244,483 |
Shares outstanding ($.001 par value per share, unlimited number of shares authorized)
| 218,110,453 | 195,221,060 |
Net Asset Value, offering and redemption price per share
| $ 1.00 | $ 1.00 |
a Investment in the Scudder Cash Management Portfolio and Scudder Treasury Money Portfolio, respectively.The accompanying notes are an integral part of the financial statements.
Statements of Operations for the six months ended June 30, 2003 (Unaudited) |
Investment Income
| Cash Management Fund Investment | Treasury Money Fund Investment |
Total investment income allocated from the Scudder Cash Management Portfolio and Scudder Treasury Money Portfolio, respectively:
Interest
| $ 999,108 | $ 1,259,909 |
Dividends
| 78,970 | 47,007 |
Expenses
| (142,297)a | (205,214)b |
Net investment income allocated from the Scudder Cash Management Portfolio and Scudder Treasury Money Portfolio, respectively
| 935,781 | 1,101,702 |
Expenses:
Administrator service fees
| 434,304 | 563,867 |
Auditing
| 5,829 | 5,206 |
Legal
| 2,448 | 553 |
Trustees' fees and expenses
| 3,107 | 1,182 |
Reports to shareholders
| 7,434 | 2,102 |
Registration fees
| 17,024 | 14,942 |
Other
| 1,951 | 518 |
Total expenses, before expense reductions
| 472,097 | 588,370 |
Expense reductions
| (22,210) | (24,665) |
Total expenses, after expense reductions
| 449,887 | 563,705 |
Net investment income
| 485,894 | 537,997 |
Net realized gain (loss) from investments
| 444 | 1,748 |
Net increase (decrease) in net assets resulting from operations
| $ 486,338 | $ 539,745 |
a For the six months ended June 30, 2003, the Advisor to the Scudder Cash Management Portfolio waived fees of which $21,978 was allocated to the Cash Management Fund Investment on a pro-rated basis.b For the six months ended June 30, 2003, the Advisor to the Scudder Treasury Money Portfolio waived fees of which $7,330 was allocated to the Treasury Money Fund Investment on a pro-rated basis.The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets - Cash Management Fund Investment |
Increase (Decrease) in Net Assets
| Six Months Ended June 30, 2003 (Unaudited) | Year Ended December 31, 2002 |
Operations:
Net investment income
| $ 485,894 | $ 2,505,635 |
Net realized gain (loss) on investment transactions
| 444 | 4,529 |
Net increase (decrease) in net assets resulting from operations
| 486,338 | 2,510,164 |
Distributions to shareholders from:
Net investment income
| (485,929) | (2,491,658) |
Fund share transactions:
Proceeds from shares sold
| 1,023,128,706 | 2,444,032,150 |
Reinvestment of distributions
| 78,470 | 591,917 |
Cost of shares redeemed
| (962,802,297) | (2,475,796,888) |
Net increase (decrease) in net assets from Fund share transactions
| 60,404,879 | (31,172,821) |
Increase (decrease) in net assets
| 60,405,288 | (31,154,315) |
Net assets at beginning of period
| 157,708,412 | 188,862,727 |
Net assets at end of period (including undistributed net investment income of $43,928 and $43,963, respectively)
| $ 218,113,700 | $ 157,708,412 |
Other Information
| | |
Shares outstanding at beginning of period
| 157,705,574 | 188,878,394 |
Shares sold
| 1,023,128,706 | 2,444,032,151 |
Shares issued to shareholders in reinvestment of distributions
| 78,470 | 591,917 |
Shares redeemed
| (962,802,297) | (2,475,796,888) |
Net increase (decrease) in Fund shares
| 60,404,879 | (31,172,820) |
Shares outstanding at end of period
| 218,110,453 | 157,705,574 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets - Treasury Money Fund Investment |
Increase (Decrease) in Net Assets
| Six Months Ended June 30, 2003 (Unaudited) | Year Ended December 31, 2002 |
Operations:
Net investment income
| $ 537,997 | $ 2,578,292 |
Net realized gain (loss) on investment transactions
| 1,748 | 27,684 |
Net increase (decrease) in net assets resulting from operations
| 539,745 | 2,605,976 |
Distributions to shareholders from:
Net investment income
| (537,909) | (2,598,587) |
Net realized gains
| - | (50,841) |
Fund share transactions:
Proceeds from shares sold
| 1,345,965,640 | 3,347,200,798 |
Reinvestment of distributions
| 361,840 | 1,762,386 |
Cost of shares redeemed
| (1,364,623,686) | (3,420,383,513) |
Net increase (decrease) in net assets from Fund share transactions
| (18,296,206) | (71,420,329) |
Increase (decrease) in net assets
| (18,294,370) | (71,463,781) |
Net assets at beginning of period
| 213,538,853 | 285,002,634 |
Net assets at end of period (including undistributed net investment income of $21,678 and $21,590, respectively)
| $ 195,244,483 | $ 213,538,853 |
Other Information
|
Shares outstanding at beginning of period
| 213,517,266 | 284,937,592 |
Shares sold
| 1,345,965,640 | 3,347,200,798 |
Shares issued in reinvestment of distributions
| 361,840 | 1,762,386 |
Shares redeemed
| (1,364,623,686) | (3,420,383,510) |
Net increase (decrease) in Fund shares
| (18,296,206) | (71,420,326) |
Shares outstanding at end of period
| 195,221,060 | 213,517,266 |
The accompanying notes are an integral part of the financial statements.
Cash Management Fund Investment
Years Ended December 31, | 2003a | 2002 | 2001 | 2000 | 1999 | 1998 |
Selected Per Share Data
|
Net asset value, beginning of period
| $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from investment operations:
|
Net investment income
| .003 | .011 | .04 | .06 | .04 | .05 |
Net realized and unrealized gain (loss) on investment transactionsb
| - | - | - | - | - | - |
Total from investment operations | .003 | .011 | .04 | .06 | .04 | .05 |
Less distributions from:
Net investment income
| (.003) | (.011) | (.04) | (.06) | (.04) | (.05) |
Net asset value, end of period
| $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%)c
| .30** | 1.14 | 3.63 | 5.87 | 4.58 | 4.93 |
Ratios to Average Net Assets and Supplemental Data
|
Net assets, end of period ($ millions)
| 218 | 158 | 189 | 244 | 154 | 233 |
Ratio of expenses before expense reductions, including expenses of Scudder Cash Management Portfolio (%)
| .81* | .78 | .78 | .79 | .78 | .81 |
Ratio of expenses after expense reductions, including expenses of Scudder Cash Management Portfolio (%)
| .75* | .75 | .75 | .75 | .75 | .75 |
Ratio of net investment income (%)
| .62* | 1.10 | 3.60 | 5.75 | 4.42 | 4.80 |
a For the six months ended June 30, 2003 (Unaudited).
b Amount is less than $.0005 per share.
c Total returns would have been lower had certain expenses not been reduced.
* Annualized
** Not annualized
|
Treasury Money Fund Investment
Years Ended December 31, | 2003a | 2002 | 2001 | 2000 | 1999 | 1998 |
Selected Per Share Data
|
Net asset value, beginning of period
| $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from investment operations:
|
Net investment income
| .003 | .010 | .03 | .05 | .04 | .05 |
Net realized and unrealized gain (loss) on investment transactionsb
| - | - | - | - | - | - |
Total from investment operations | .003 | .010 | .03 | .05 | .04 | .05 |
Less distributions from:
Net investment income
| (.003) | (.010) | (.03) | (.05) | (.04) | (.05) |
Net realized gain on investment transactions
| - | -b | - | - | - | - |
Net asset value, end of period
| $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%)c
| .26** | 1.04 | 3.33 | 5.60 | 4.32 | 4.76 |
Ratios to Average Net Assets and Supplemental Data
|
Net assets, end of period ($ millions)
| 195 | 214 | 285 | 336 | 561 | 309 |
Ratio of expenses before expense reductions, including expenses of Scudder Treasury Money Portfolio (%)
| .78* | .78 | .79 | .78 | .77 | .77 |
Ratio of expenses after expense reductions, including expenses of Scudder Treasury Money Portfolio (%)
| .75* | .75 | .75 | .75 | .75 | .75 |
Ratio of net investment income (%)
| .52* | 1.03 | 3.25 | 5.43 | 4.25 | 4.66 |
a For the six months ended June 30, 2003 (Unaudited).
b Amount is less than $.0005.
c Total return would have been lower had certain expenses not been reduced.
* Annualized
** Not annualized
|
Notes to Financial Statements (Unaudited) |
|
Note 1-Organization and Significant Accounting Policies
A. Organization
Scudder Advisor Funds (formerly BT Investment Funds) (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "1940 Act") as an open-end, diversified, management investment company organized as a Massachusetts business trust. Cash Management Fund Investment and Treasury Money Fund Investment (each a "Fund" and collectively, the "Funds") are two of several funds the Trust offers to investors.
The Funds seek to achieve their investment objectives by investing substantially all of their assets in the Scudder Cash Management Portfolio and the Scudder Treasury Money Portfolio, respectively (each a "Portfolio" and collectively, the "Portfolios"), each an open-end management investment company registered under the 1940 Act. Details concerning each Portfolio's investment objectives and policies and the risk factors associated with each Portfolio's investments are described in their respective Prospectuses and Statements of Additional Information.
On June 30, 2003 the Cash Management Fund Investment owned approximately 2% of the Scudder Cash Management Portfolio and the Treasury Money Fund Investment owned approximately 20% of the Scudder Treasury Money Portfolio. The financial statements of the Portfolios, including the Investment Portfolios, are contained elsewhere in this report and should be read in conjunction with the Funds' financial statements.
Each Fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Fund in the preparation of its financial statements.
B. Security Valuation
Each Fund determines the valuation of its investment in its Portfolio by multiplying its proportionate ownership of the Portfolio by the total value of the Portfolio's net assets.
Each Portfolio's policies for determining the value of its net assets are discussed in each Portfolio's Financial Statements, which accompany this report.
C. Federal Income Taxes
Each Fund's policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable income to its shareholders. Accordingly, each Fund paid no federal income taxes and no federal income tax provision was required.
At December 31, 2002 the Cash Management Fund Investment had a net tax basis capital loss carry forward of approximately $1,300 which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until December 31, 2005, the expiration date, whichever occurs first.
D. Distribution of Income
All of the net investment income of each Fund is declared as a daily dividend and is distributed to shareholders monthly.
Permanent book and tax differences relating to shareholder distributions will result in reclassifications to paid in capital. Temporary book and tax differences will reverse in a subsequent period. There were no significant book to tax differences for the Funds.
At December 31, 2002, the Funds' components of distributable earnings (accumulated losses) on a tax basis were as follows:
| Cash Management Fund Investment | Treasury Money Fund Investment |
Undistributed ordinary income
| $ 43,963 | $ 21,590 |
In addition, during the year ended December 31, 2002, the tax character of distributions paid to shareholders by the Funds is summarized as follows:
| 2002 |
Cash Management Fund Investment
Distributions from ordinary income*
| $ 2,491,658 |
Treasury Money Fund Investment
Distributions from ordinary income*
| $ 2,649,428 |
* For tax purposes short-term capital gains distributions are considered ordinary income distributions.The tax character of current year distributions will be determined at the end of the current fiscal year.
E. Other
Each Fund receives a daily allocation of each respective Portfolio's net investment income and net realized gains and losses in proportion to its investment in the respective Portfolio. Expenses directly attributed to a fund are charged to that Fund, while expenses that are attributed to the Trust are allocated among the Funds in the Trust based on their respective net assets.
Note 2-Fees and Transactions with Affiliates
Deutsche Asset Management, Inc. ("DeAM, Inc." or the "Advisor") is the Advisor for each Portfolio and Investment Company Capital Corp. ("ICCC" or the "Administrator") is the Administrator for each Fund, both an indirect, wholly owned subsidiary of Deutsche Bank AG. Each Fund pays the Administrator an annual fee ("Administrator Service Fee") based on its average daily net assets which is calculated daily and paid monthly at the annual rate of 0.55%.
For the six months ended June 30, 2003, the Administrator contractually agreed to waive its fees and/or reimburse expenses of each Fund to the extent necessary to maintain the annualized expenses of the Scudder Cash Management Fund Investment and Scudder Treasury Money Fund Investment each at 0.75% of their average daily net assets including expenses of the Scudder Cash Management Portfolio and the Scudder Treasury Money Portfolio, respectively.
Accordingly, for the six months ended June 30, 2003, each Fund did not impose a portion of its Administrator Service Fee as follows:
| Amount Aggregated | Amount Waived | Effective Rate |
Cash Management Fund Investment
| $ 434,304 | $ 22,210 | .52% |
Treasury Money Fund Investment
| $ 563,867 | $ 24,665 | .53% |
Certain officers and a Trustee of the Funds are also officers or Trustees of ICCC or affiliated with Deutsche Bank AG. These persons are not paid by the Funds for serving in these capacities. The Funds pay each Trustee not affiliated with Deutsche Bank AG retainer fees plus specified amounts for attended board and committee meetings.
Note 3-Concentration of Ownership
From time to time each Fund may have a concentration of several shareholders holding a significant percentage of shares outstanding. Investment activities of these shareholders could have a material impact on each Fund.
At June 30, 2003 there was one shareholder who held 87% of the outstanding shares of the Cash Management Fund Investment and there were two shareholders who held 53% of the outstanding shares of the Treasury Money Fund Investment.
Investment Portfolio as of June 30, 2003 (Unaudited) | |
|
Scudder Cash Management Portfolio | Principal Amount ($) | Value ($) |
|
|
Certificates of Deposit and Bank Notes 41.3% |
Abbey National Treasury Services PLC, 2.09%, 7/1/2003
| 50,000,000
| 50,000,000
|
Barclays Bank PLC:
1.24%, 7/14/2003
| 70,000,000
| 69,999,748
|
1.375%, 7/1/2003
| 200,000,000
| 200,000,000
|
Caisse Des Depots Et Consignations, 1.375%, 7/1/2003
| 200,000,000
| 200,000,000
|
Canadian Imperial Bank of Commerce, 1.25%, 3/10/2004
| 100,000,000
| 99,997,398
|
Credit Agricole Indosuez SA, 1.285%, 4/14/2004
| 135,000,000
| 134,984,027
|
Credit Lyonnais SA:
1.05%, 12/31/2003
| 80,000,000
| 80,000,000
|
1.19%, 8/11/2003
| 100,000,000
| 100,000,000
|
1.25%, 8/18/2003
| 25,000,000
| 25,000,972
|
1.35%, 7/1/2003
| 150,000,000
| 150,000,000
|
Danske Bank AS, 1.4%, 7/1/2003
| 175,000,000
| 175,000,000
|
Dexia Bank, 1.4%, 7/1/2003
| 200,000,000
| 200,000,000
|
Dresdner Bank AG, 1.5%, 7/1/2003
| 200,000,000
| 200,000,000
|
First Tennessee Bank NA:
1.2%, 7/2/2003
| 45,000,000
| 44,999,924
|
1.21%, 7/22/2003
| 60,000,000
| 59,998,592
|
1.25%, 7/22/2003
| 45,000,000
| 44,999,867
|
HBOS Treasury Services PLC:
1.23%, 7/29/2003 | 150,000,000
| 150,000,000
|
1.26%, 7/17/2003 | 40,000,000
| 40,000,000
|
1.26%, 7/29/2003 | 85,000,000
| 85,000,000
|
HSBC Bank USA, 2.05%, 7/15/2003
| 40,000,000
| 40,000,000
|
Landesbank Hessen-Thuringen Girozentrale:
2.02%, 7/23/2003
| 60,000,000
| 60,000,000
|
2.06%, 7/23/2003
| 50,000,000
| 50,001,470
|
Lloyds TSB Bank PLC, 0.98%, 8/19/2003
| 123,000,000
| 123,000,000
|
Natexis Banque Populaires, 1.05%, 9/30/2003
| 50,000,000
| 50,000,000
|
Norddeutsche Landesbank Girozentrale, 1.18%, 8/11/2003
| 25,000,000
| 25,000,000
|
Northern Rock PLC:
0.95%, 8/26/2003
| 60,000,000
| 60,000,000
|
0.95%, 9/23/2003
| 25,000,000
| 25,000,000
|
1.27%, 7/25/2003
| 66,000,000
| 66,000,431
|
Rabobank Nederland NV, 1.4%, 7/1/2003
| 300,000,000
| 300,000,000
|
Royal Bank of Scotland PLC, 1.04%, 8/12/2003
| 85,000,000
| 85,000,000
|
Societe Generale:
0.92%, 12/23/2003
| 40,000,000
| 40,000,000
|
1.04%, 8/21/2003
| 100,000,000
| 100,000,000
|
1.18%, 11/6/2003
| 119,000,000
| 119,113,245
|
South Trust Bank, 1.32%, 7/1/2003
| 173,332,841
| 173,332,841
|
Toronto Dominion Bank:
0.92%, 12/23/2003
| 120,000,000
| 120,000,000
|
1.315%, 4/15/2004
| 50,000,000
| 49,997,030
|
1.325%, 3/22/2004
| 47,000,000
| 46,998,293
|
UBS AG, 1.375%, 7/1/2003
| 200,000,000
| 200,000,000
|
Unicredito Italiano SpA:
0.94%, 9/24/2003
| 100,000,000
| 100,000,000
|
1.25%, 7/21/2003
| 40,000,000
| 40,000,000
|
1.29%, 7/28/2003
| 25,000,000
| 25,000,647
|
1.3%, 7/21/2003
| 30,000,000
| 30,000,000
|
1.3%, 7/21/2003
| 30,000,000
| 30,000,083
|
1.3%, 7/23/2003
| 200,000,000
| 200,000,000
|
Total Certificates of Deposit and Bank Notes (Cost $4,268,424,568)
| 4,268,424,568 |
|
Commercial Paper 39.1% |
Asset Portfolio Funding Corp., 1.05%**, 9/22/2003
| 112,087,000
| 111,827,184
|
Bank of Ireland, 1.21%**, 9/2/2003
| 25,000,000
| 24,947,063
|
Bear Stearns Bank PLC, 1.22%**, 9/3/2003
| 45,000,000
| 44,902,400
|
CAFCO International, 1.18%**, 8/13/2003
| 35,000,000
| 34,950,669
|
CIESCO LP, 1.25%**, 7/8/2003
| 27,000,000
| 26,993,438
|
CIT Group Holdings, Inc.:
0.99%**, 9/12/2003
| 15,000,000
| 14,969,888
|
1.05%**, 8/1/2003
| 25,000,000
| 24,977,396
|
1.06%**, 10/2/2003
| 25,000,000
| 24,931,542
|
1.25%**, 7/30/2003
| 25,000,000
| 24,974,826
|
Citigroup Global Markets, 1.26%**, 7/14/2003
| 180,000,000
| 179,918,100
|
Coca-Cola Enterprises Co.:
1.05%**, 8/4/2003
| 41,305,000
| 41,264,039
|
1.25%**, 7/15/2003
| 25,000,000
| 24,987,847
|
Compass Securitization LLC, 1.01%**, 7/21/2003
| 25,000,000
| 24,985,972
|
Corporate Receivables Corp., 1.15%**, 9/8/2003
| 75,000,000
| 74,834,688
|
CXC, Inc.:
1.17%**, 8/20/2003
| 50,000,000
| 49,918,750
|
1.18%**, 8/19/2003
| 65,000,000
| 64,895,603
|
DEPFA Bank Europe PLC, 1.04%**, 9/12/2003
| 30,000,000
| 29,936,733
|
GE Capital International Funding, Inc.:
1.05%**, 9/11/2003
| 75,000,000
| 74,842,500
|
1.24%**, 7/15/2003
| 100,000,000
| 99,951,778
|
GE Financial Assurance Holdings, Inc.:
1.24%**, 7/21/2003
| 30,000,000
| 29,979,333
|
1.24%**, 7/29/2003
| 50,000,000
| 49,951,778
|
Goldman Sachs Group, Inc.:
0.94%**, 11/21/2003
| 210,000,000
| 209,215,883
|
1.27%**, 9/4/2003
| 30,000,000
| 29,931,208
|
1.38%, 7/23/2003
| 290,000,000
| 290,000,000
|
Grampian Funding LLC:
0.96%**, 7/30/2003
| 40,675,000
| 40,643,545
|
1.23%**, 7/29/2003
| 50,000,000
| 49,952,167
|
Greyhawk Funding LLC:
0.95%**, 8/19/2003
| 30,000,000
| 29,961,208
|
1.0%**, 7/23/2003
| 60,000,000
| 59,963,333
|
1.25%**, 7/10/2003
| 70,000,000
| 69,978,125
|
1.25%**, 7/11/2003
| 100,000,000
| 99,965,278
|
Harris Trust, 1.25%, 7/7/2003
| 100,000,000
| 100,000,000
|
International Lease Finance Corp., 1.27%**, 7/18/2003
| 37,500,000
| 37,477,510
|
J.P. Morgan Chase & Co., 1.25%**, 7/16/2003
| 50,000,000
| 49,973,958
|
Jupiter Securitization Corp., 1.0%**, 7/21/2003
| 42,000,000
| 41,976,667
|
K2 (USA), LLC:
1.0%**, 12/11/2003
| 29,000,000
| 28,868,694
|
1.05%**, 9/30/2003
| 43,000,000
| 42,885,871
|
1.16%**, 11/10/2003
| 20,000,000
| 19,914,933
|
1.28%**, 8/22/2003
| 20,500,000
| 20,462,098
|
1.34%**, 7/3/2003
| 51,000,000
| 50,996,203
|
Lake Constance Funding, 1.24%**, 8/28/2003
| 48,300,000
| 48,203,507
|
Liberty Street Funding Co., 1.0%**, 7/18/2003
| 25,000,000
| 24,988,194
|
Links Finance Corp.:
1.02%**, 8/28/2003
| 11,000,000
| 10,981,923
|
1.22%**, 9/2/2003
| 40,000,000
| 39,914,600
|
Northern Rock PLC, 1.05%**, 8/11/2003
| 15,000,000
| 14,982,063
|
Old Line Funding Corp.:
1.07%**, 7/29/2003
| 60,000,000
| 59,950,067
|
1.25%**, 7/11/2003
| 20,000,000
| 19,993,056
|
Perry Global Funding LLC:
1.23%**, 8/22/2003
| 50,000,000
| 49,911,167
|
1.25%**, 7/25/2003
| 50,000,000
| 49,958,333
|
Prefco, 1.19%**, 7/11/2003
| 47,000,000
| 46,984,464
|
Quincy Capital Corp., 1.08%**, 7/7/2003
| 100,000,000
| 99,982,000
|
REC Capital Corp., 1.05%**, 7/15/2003
| 161,247,000
| 161,181,157
|
Royal Bank of Scotland PLC, 1.25%**, 7/11/2003
| 100,000,000
| 99,965,278
|
RWE AG, 1.05%**, 9/26/2003
| 40,000,000
| 39,898,500
|
Scaldis Capital LLC:
0.96%**, 7/25/2003
| 204,541,000
| 204,394,955
|
1.0%**, 7/15/2003
| 100,000,000
| 99,954,811
|
1.03%**, 7/21/2003
| 100,000,000
| 99,942,778
|
1.24%**, 9/10/2003
| 28,618,000
| 28,548,013
|
1.25%**, 10/8/2003
| 53,686,000
| 53,501,454
|
1.27%**, 7/14/2003
| 20,000,000
| 19,990,828
|
Sheffield Receivables Corp.:
1.19%**, 7/9/2003
| 100,000,000
| 99,973,556
|
1.25%**, 7/10/2003
| 25,000,000
| 24,992,188
|
1.25%**, 7/28/2003
| 25,000,000
| 24,976,563
|
Shell Finance (UK) PLC, 1.66%**, 7/2/2003
| 25,000,000
| 24,998,847
|
Spintab AB, 1.22%**, 8/1/2003
| 80,000,000
| 79,915,956
|
Tango Finance Corp., 1.27%**, 8/1/2003
| 13,000,000
| 12,985,783
|
Verizon Network Funding Group, 1.34%**, 7/1/2003
| 23,000,000
| 23,000,000
|
Wells Fargo Bank, 1.24%, 7/10/2003
| 72,500,000
| 72,499,724
|
Windmill Funding Corp., 1.25%**, 7/8/2003
| 50,000,000
| 49,987,847
|
Total Commercial Paper (Cost $4,037,665,820)
| 4,037,665,820 |
|
Floating Rate Notes 13.6% |
Allstate Life Insurance Co., 1.367%*, 7/1/2003
| 45,000,000
| 45,000,000
|
American Honda Finance Corp.:
1.2%*, 3/8/2004
| 90,000,000
| 90,000,000
|
1.256%*, 7/11/2003
| 35,000,000
| 35,000,000
|
1.431%*, 5/10/2004
| 25,000,000
| 25,039,646
|
Bank of Scotland PLC, 1.388%*, 5/28/2004
| 25,000,000
| 25,031,911
|
Beta Finance, Inc.:
1.059%*, 5/17/2004
| 50,000,000
| 49,997,813
|
1.235%*, 2/6/2004
| 35,000,000
| 34,998,945
|
Blue Heron Funding Ltd., 1.074%*, 5/19/2004
| 24,000,000
| 24,000,000
|
Canadian Imperial Bank of Commerce:
1.005%*, 6/21/2004
| 45,000,000
| 45,003,056
|
1.069%*, 5/28/2004
| 200,000,000
| 199,972,712
|
CC (USA), Inc., 1.069%*, 9/15/2003
| 50,000,000
| 49,998,965
|
General Electric Capital Assurance Co.:
1.196%*, 12/29/2003
| 75,000,000
| 75,000,000
|
1.36%*, 9/3/2003
| 60,000,000
| 60,000,000
|
1.36%*, 3/1/2004
| 20,000,000
| 20,000,000
|
General Electric Capital Corp.:
1.399%*, 10/22/2003
| 20,000,000
| 20,008,305
|
1.625%*, 5/14/2004
| 19,000,000
| 19,031,521
|
1.7%*, 3/25/2004
| 15,000,000
| 15,020,972
|
Landesbank Baden Wurttemberg, 1.18%*, 3/15/2004
| 10,000,000
| 10,003,563
|
Morgan Stanley:
1.166%*, 12/1/2003
| 50,000,000
| 50,000,000
|
1.55%*, 7/21/2003
| 27,000,000
| 27,000,000
|
1.55%*, 2/26/2004
| 60,000,000
| 60,000,000
|
New York Life Funding, 1.09%*, 9/22/2003
| 60,000,000
| 60,000,000
|
Nordea Bank Finland PLC, 1.219%*, 9/10/2003
| 40,000,000
| 39,997,658
|
Security Life Denver, 1.41%*, 1/29/2004
| 50,000,000
| 50,000,000
|
Spintab AB, 1.32%*, 1/23/2004
| 50,000,000
| 50,010,215
|
Travelers Insurance Co.:
1.341%*, 4/2/2004
| 30,000,000
| 30,000,000
|
1.369%*, 1/27/2004
| 50,000,000
| 50,000,000
|
Westdeutsche Landesbank AG, 1.064%*, 6/1/2004
| 150,000,000
| 149,972,294
|
Total Floating Rate Notes (Cost $1,410,087,576)
| 1,410,087,576 |
|
US Agency Obligations 4.4% |
Federal Home Loan Bank:
1.23%, 7/6/2004
| 45,000,000
| 45,000,000
|
1.25%, 7/2/2004
| 35,000,000
| 35,000,000
|
1.3%, 6/30/2004
| 50,000,000
| 50,000,000
|
1.4%, 5/24/2004
| 50,000,000
| 50,000,000
|
1.425%, 3/8/2004
| 60,000,000
| 60,000,000
|
Federal Home Loan Mortgage Corp.:
1.03%**, 10/31/2003
| 50,000,000
| 49,825,472
|
1.06%**, 10/24/2003
| 50,000,000
| 49,830,694
|
3.25%, 1/15/2004
| 50,000,000
| 50,611,782
|
Federal National Mortgage Association:
1.4%, 4/19/2004 | 35,000,000
| 35,000,000
|
1.47%*, 1/29/2004 | 30,000,000
| 30,000,000
|
Total US Agency Obligations (Cost $455,267,948)
| 455,267,948 |
|
Scudder Cash Management Portfolio | Shares | Value ($) |
|
|
Money Market Funds 1.6% |
AIM Liquid Assets Portfolio, 1.15%
| 37,542,850
| 37,542,850
|
Federated Prime Cash Obligation Fund, 1.07%
| 100,000,000
| 100,000,000
|
Strong Heritage Money Fund, 0.98%
| 25,000,000
| 25,000,000
|
Total Money Market Funds (Cost $162,542,850)
| 162,542,850 |
Total Investment Portfolio - 100.0% (Cost $10,333,988,762) (a)
| 10,333,988,762 |
* Floating rate notes are securities whose yields vary with a designated market index or market rate, such as the coupon-equivalent of the US Treasury bill rate. These securities are shown at their current rate as of June 30, 2003.** Annualized yield at the time of purchase; not a coupon rate.(a) Cost for federal income tax purposes was $10,333,988,762.The accompanying notes are an integral part of the financial statements.
Investment Portfolio as of June 30, 2003 (Unaudited) | |
|
Scudder Treasury Money Portfolio | Principal Amount ($) | Value ($) |
|
|
US Treasury Obligations 45.1% |
US Treasury Bills:
|
|
|
0.99%*, 9/11/2003 | 50,000,000
| 49,901,000
|
1.03%*, 10/30/2003 | 60,000,000
| 59,782,620
|
1.09%*, 11/6/2003 | 30,000,000
| 29,883,733
|
1.15%*, 9/18/2003 | 30,000,000
| 29,924,292
|
1.18%*, 8/7/2003 | 40,000,000
| 39,951,489
|
1.18%*, 10/23/2003 | 50,000,000
| 49,813,167
|
1.21%*, 7/10/2003 | 58,000,000
| 57,982,460
|
1.23%*, 7/17/2003 | 25,000,000
| 24,986,333
|
US Treasury Notes:
|
|
|
3.0%, 1/31/2004 | 75,000,000
| 75,870,192
|
3.25%, 12/31/2003 | 21,000,000
| 21,250,710
|
Total US Treasury Obligations (Cost $439,345,996)
| 439,345,996 |
|
Repurchase Agreements** 54.9% |
Tri Party Repurchase Agreement with Bank of America Securities LLC, dated 6/30/2003, 1.0%, principal and interest in the amount of $45,001,250, due 7/1/2003
| 45,000,000
| 45,000,000
|
Tri Party Repurchase Agreement with Bear Stearns & Co., Inc., dated 6/30/2003, 1.07%, principal and interest in the amount of $45,001,338, due 7/1/2003
| 45,000,000
| 45,000,000
|
Tri Party Repurchase Agreement with BNP Paribus, dated 6/30/2003, 1.1%, principal and interest in the amount of $50,001,528, due 7/1/2003
| 50,000,000
| 50,000,000
|
Tri Party Repurchase Agreement with Credit Suisse First Boston Corp., dated 6/30/2003, 1.09%, principal and interest in the amount of $142,907,697, due 7/1/2003
| 142,903,370
| 142,903,370
|
Tri Party Repurchase Agreement with Goldman Sachs & Co., dated 6/30/2003, 1.05%, principal and interest in the amount of $45,001,313, due 7/1/2003
| 45,000,000
| 45,000,000
|
Tri Party Repurchase Agreement with UBS AG, dated 6/30/2003, 1.1%, principal and interest in the amount of $106,003,239, due 7/1/2003
| 106,000,000
| 106,000,000
|
Tri Party Repurchase Agreement with Westdeutsche Landesbank Girozentrale, dated 6/30/2003, 1.15%, principal and interest in the amount of $100,003,194, due 7/1/2003
| 100,000,000
| 100,000,000
|
Total Repurchase Agreements (Cost $533,903,370)
| 533,903,370 |
Total Investment Portfolio - 100.0% (Cost $973,249,366) (a)
| 973,249,366 |
* Annualized yield at the time of purchase; not a coupon rate.** Repurchase agreements are fully collateralized by US Treasury or Government agency securities.(a) The cost for federal income tax purposes was $973,249,366.The accompanying notes are an integral part of the financial statements.
Statement of Assets and Liabilities as of June 30, 2003 (Unaudited) |
Assets
| Scudder Cash Management Portfolio | Scudder Treasury Money Portfolio |
Investments in securities, at amortized cost
| $ 10,333,988,762 | $ 439,345,996 |
Repurchase agreements, at amortized cost
| - | 533,903,370 |
Cash
| 166 | - |
Receivable for shares of beneficial interest subscribed
| - | 3,043,502 |
Interest receivable
| 14,265,652 | 956,589 |
Other assets
| 42,163 | 5,878 |
Total assets
| 10,348,296,743 | 977,255,335 |
Liabilities
|
Payable for shares of beneficial interest withdrawn
| 74,486 | 2,934,140 |
Due to custodian bank
| - | 143 |
Accrued advisory fee
| 749,864 | 94,556 |
Accrued administrator service fee
| 443,856 | 43,274 |
Other accrued expenses and payables
| 87,275 | 15,072 |
Total liabilities
| 1,355,481 | 3,087,185 |
Net assets, at value
| $ 10,346,941,262 | $ 974,168,150 |
The accompanying notes are an integral part of the financial statements.
Statement of Operations for the six months ended June 30, 2003 (Unaudited) |
Investment Income
| Scudder Cash Management Portfolio | Scudder Treasury Money Portfolio |
Interest
| $ 69,456,987 | $ 5,253,383 |
Dividends
| 3,743,344 | 235,033 |
Total Income
| 73,200,331 | 5,488,416 |
Expenses:
Advisory fee
| 8,069,049 | 650,122 |
Administrator service fees
| 2,690,545 | 216,468 |
Auditing
| 11,445 | 11,032 |
Legal
| 5,766 | 3,877 |
Trustees' fees and expenses
| 163,631 | 9,044 |
Other
| 222,249 | 11,669 |
Total expenses, before expense reductions
| 11,162,685 | 902,212 |
Expense reductions
| (1,481,559) | (35,383) |
Total expenses, after expense reductions
| 9,681,126 | 866,829 |
Net investment income
| 63,519,205 | 4,621,587 |
Net realized gain (loss) from investment transactions
| 25,241 | 9,510 |
Net increase (decrease) in net assets resulting from operations
| $ 63,544,446 | $ 4,631,097 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets - Scudder Cash Management Portfolio |
Increase (Decrease) in Net Assets
| Six Months Ended June 30, 2003 (Unaudited) | Year Ended December 31, 2002 |
Operations:
Net investment income
| $ 63,519,205 | $ 182,233,459 |
Net realized gain (loss) on investment transactions
| 25,241 | 204,166 |
Net increase (decrease) in net assets resulting from operations
| 63,544,446 | 182,437,625 |
Capital transaction in shares of beneficial interest:
Proceeds from capital invested
| 35,877,311,019 | 54,331,491,476 |
Value of capital withdrawn
| (36,830,534,502) | (54,140,926,979) |
Net increase (decrease) in net assets from capital transactions in shares of beneficial interest
| (953,223,483) | 190,564,497 |
Increase (decrease) in net assets
| (889,679,037) | 373,002,122 |
Net assets at beginning of period
| 11,236,620,299 | 10,863,618,177 |
Net assets at end of period
| $ 10,346,941,262 | $ 11,236,620,299 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets - Scudder Treasury Money Portfolio |
Increase (Decrease) in Net Assets
| Six Months Ended June 30, 2003 (Unaudited) | Year Ended December 31, 2002 |
Operations:
Net investment income
| $ 4,621,587 | $ 11,973,811 |
Net realized gain (loss) on investment transactions
| 9,510 | 84,719 |
Net increase (decrease) in net assets resulting from operations
| 4,631,097 | 12,058,530 |
Capital transaction in shares of beneficial interest:
Proceeds from capital invested
| 2,243,691,105 | 106,601,261 |
Value of capital withdrawn
| (2,069,250,478) | (134,822,852) |
Net increase (decrease) in net assets from capital transactions in shares of beneficial interest
| 174,440,627 | (28,221,591) |
Increase (decrease) in net assets
| 179,071,724 | (16,163,061) |
Net assets at beginning of period
| 795,096,426 | 811,259,487 |
Net assets at end of period
| $ 974,168,150 | $ 795,096,426 |
The accompanying notes are an integral part of the financial statements.
Scudder Cash Management Portfolio
Years Ended December 31, | 2003a | 2002 | 2001 | 2000 | 1999 | 1998 |
Ratios to Average Net Assets and Supplemental Data
|
Net assets, end of period ($ millions)
| 10,347 | 11,237 | 10,864 | 8,806 | 6,101 | 5,464 |
Ratio of expenses before expense reductions (%)
| .21* | .20 | .20 | .20 | .20 | .20 |
Ratio of expenses after expense reductions (%)
| .18* | .18 | .18 | .18 | .18 | .18 |
Ratio of net investment income (%)
| 1.18* | 1.71 | 4.04 | 6.28 | 5.04 | 5.37 |
Total Investment Return (%)b
| .59** | 1.72 | - | - | - | - |
Scudder Treasury Money Portfolio
Years Ended December 31, | 2003a | 2002 | 2001 | 2000 | 1999 | 1998 |
Ratios to Average Net Assets and Supplemental Data
|
Net assets, end of period ($ millions)
| 974 | 795 | 811 | 1,431 | 2,529 | 2,039 |
Ratio of expenses before expense reductions (%)
| .21* | .21 | .21 | .21 | .20 | .20 |
Ratio of expenses after expense reductions (%)
| .20* | .20 | .20 | .20 | .20 | .20 |
Ratio of net investment income (%)
| 1.07* | 1.56 | 3.94 | 5.95 | 4.76 | 5.23 |
Total Investment Return (%)b
| .56** | 1.60 | - | - | - | - |
a For the six months ended June 30, 2003 (Unaudited).b Total investment return would have been lower had certain expenses not been reduced.* Annualized** Not annualizedNotes to Financial Statements (Unaudited) |
|
Note 1-Organization and Significant Accounting Policies
A. Organization
The Scudder Cash Management Portfolio (formerly Cash Management Portfolio) and the Scudder Treasury Money Portfolio (formerly Treasury Money Portfolio) (each a "Portfolio," and collectively, the "Portfolios") are registered under the Investment Company Act of 1940 (the "1940 Act"), as amended, as diversified, open-end management investment companies organized as New York business trusts.
Each Portfolio's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Portfolios in the preparation of their financial statements.
B. Security Valuation
Each Portfolio's securities are valued utilizing the amortized cost method permitted in accordance with Rule 2a-7 under the 1940 Act and certain conditions therein. Under this method, which does not take into account unrealized capital gains or losses on securities, an instrument is initially valued at its cost and thereafter assumes a constant accretion/amortization to maturity of any discount or premium.
Investments in open-end investment companies are valued at their net asset value each business day.
C. Repurchase Agreements
Each Portfolio may enter into repurchase agreements with certain banks and broker/dealers whereby the Portfolio, through its custodian or sub-custodian bank, receives delivery of the underlying securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the value is equal to at least the principal amount of the repurchase price plus accrued interest. The custodial bank holds the collateral in a separate account until the agreement matures. If the value of the securities falls below the principal amount of the repurchase agreement plus accrued interest, the financial institution deposits additional collateral by the following business day. If the financial institution either fails to deposit the required additional collateral or fails to repurchase the securities as agreed, the Portfolio has the right to sell the securities and recover any resulting loss from the financial institution. If the financial institution enters into bankruptcy, the Portfolio's claims on the collateral may be subject to legal proceedings.
D. Federal Income Taxes
Each Portfolio is considered a partnership under the Internal Revenue Code. Therefore, no federal income tax provision is necessary.
E. Other
Investment transactions are accounted for on the trade date. Interest income is recorded on the accrual basis. Distributions of income and capital gains from investment companies are recorded on the ex-dividend date. 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.
Each Portfolio makes a daily allocation of its net investment income and realized gains and losses from securities transactions to its investors in proportion to their investment in the Portfolio.
Note 2-Fees and Transactions with Affiliates
Deutsche Asset Management, Inc., ("DeAM, Inc." or the "Advisor"), an indirect, wholly owned subsidiary of Deutsche Bank AG, is the Advisor for each of the Portfolios. Under the Advisory Agreement, each Portfolio pays the Advisor an annual fee based on its average daily net assets which is calculated daily and paid monthly at the annual rate of 0.15%.
Investment Company Capital Corp. ("ICCC" or the "Administrator"), also an indirect, wholly owned subsidiary of Deutsche Bank AG, is each Portfolio's Administrator. Each Portfolio pays the Administrator an annual fee ("Administrator Service Fee") based on its average daily net assets which is calculated daily and paid monthly at the annual rate of 0.05%.
For the six months ended June 30, 2003, the Advisor and Administrator maintained the annualized expenses of the Scudder Cash Management Portfolio and Scudder Treasury Money Portfolio at not more than 0.18% and 0.20%, respectively, of each Portfolio's average daily net assets. The amount of the waiver and whether the Advisor and Administrator waive their fees may vary at any time without notice to the shareholders.
Accordingly, for the six months ended June 30, 2003, each Portfolio did not impose a portion of its Advisory fee as follows:
| Total Aggregated | Amount
Waived | Effective Rate |
Scudder Cash Management Portfolio
| $ 8,069,049 | $ 1,481,559 | .12% |
Scudder Treasury Money Portfolio
| $ 650,122 | $ 35,383 | .14% |
Effective April 11, 2003, State Street Bank and Trust Company ("State Street") is each Portfolio's custodian. Prior to April 11, 2003, Deutsche Bank Trust Company Americas, an affiliate of the Advisor and Administrator, served as custodian for each Portfolio.
Certain officers and a Trustee of the Portfolios are also officers or Trustees of ICCC or affiliated with Deutsche Bank AG. These persons are not paid by the Portfolios for serving in these capacities. The Portfolios pay each Trustee not affiliated with Advisor retainer fees plus specified amounts for attended board and committee meetings.
Note 3-Line of Credit
Prior to April 11, 2003, each Portfolio and several other affiliated funds (the "Participants") shared in a $200 million revolving credit facility with a syndicate of banks for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants were charged an annual commitment fee which was allocated, pro rata based upon net assets, among each of the Participants. Interest was calculated at the Federal Funds Rate plus 0.625 percent.
Effective April 11, 2003, each Portfolio entered into a new revolving credit facility administered by J.P. Morgan Chase Bank that provides $1.25 billion of credit coverage. The new revolving credit facility covers the funds and portfolios advised or administered by DeAM, Inc. or its affiliates. Interest is calculated at the Federal Funds Rate plus 0.5 percent. The Portfolios may borrow up to a maximum of 5 percent of their net assets under the agreement.
Account Management Resources |
|
Automated Information Lines | Institutional Investor Services (800) 730-1313 Personalized account information, information on other Scudder funds and services via touchtone telephone and the ability to exchange or redeem shares.
|
For more information
or to obtain a prospectus | (800) 730-1313, option 1 To speak with a fund service representative.
|
Written correspondence | Deutsche Asset Management PO Box 219210
Kansas City, MO
64121-9210
|
Principal Underwriter | If you have questions, comments or complaints, contact:
Scudder Distributors, Inc. 222 South Riverside Plaza
Chicago, IL 60606
(800) 621-1148
|
| Cash Management Fund Investment | Treasury Money Fund Investment |
Nasdaq Symbol | BCSXX
| BTTXX
|
CUSIP Number | 81111R 106
| 81111R 403
|
Fund Number | 834
| 835
|
This privacy statement is issued by the Deutsche Asset Management mutual funds, Scudder Financial Services, Inc., Scudder Investor Services, Inc., Scudder Trust Company and Scudder Distributors, Inc.
We consider privacy fundamental to our client relationships and adhere to the policies and practices described below to protect current and former clients' information.
We never sell customer lists or individual client information. Internal policies are in place to protect confidentiality, while allowing client needs to be served. Only individuals who need to do so in carrying out their job responsibilities may access client information. We maintain physical, electronic and procedural safeguards that comply with federal standards to protect confidentiality. These safeguards extend to all forms of interaction with us, including the Internet.
In the normal course of business, clients give us nonpublic personal information on applications and other forms, on our Web sites, and through transactions with us or our affiliates. To be able to serve our clients, information is shared with affiliates and other companies. Specifically, we disclose client information to parties that perform various services for us, such as transfer agents, custodians, and broker-dealers. Limited information also may be shared with affiliates, with companies with which we have joint marketing agreements, or with other parties as required by law. Any organization receiving client information may only use it for the purpose designated by the entities listed above.
If you have questions about our privacy policy, please contact us at (800) 730-1313, or write to:
Deutsche Asset Management
Attention: Correspondence
P.O. Box 219415
Kansas City, MO 64121-9415
July 2002
ITEM 2. CODE OF ETHICS.
Not currently applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not currently applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not currently applicable.
ITEM 5. [RESERVED]
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIERS AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The Chief Executive and Financial Officers concluded that the
Registrant's Disclosure Controls and Procedures are effective based on the
evaluation of the Disclosure Controls and Procedures as of a date within 90 days
of the filing date of this report.
Form N-CSR Item F
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: Scudder Cash Management Portfolio
By: /s/Richard T. Hale
------------------------------
Richard T. Hale
Chief Executive Officer
Date: August 19, 2003
------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
Registrant: Scudder Cash Management Portfolio
By: /s/Richard T. Hale
------------------------------
Richard T. Hale
Chief Executive Officer
Date: August 19, 2003
------------------------------
By: /s/Charles A. Rizzo
------------------------------
Charles A. Rizzo
Chief Financial Officer
Date: August 19, 2003
------------------------------
