UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-2819
CDC Nvest Cash Management Trust
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(Exact name of registrant as specified in charter)
399 Boylston Street, Boston, Massachusetts 02116
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(Address of principal executive offices) (Zip code)
John E. Pelletier, Esq.
CDC IXIS Asset Management Distributors, L.P.
399 Boylston Street
Boston, Massachusetts 02116
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(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 449-2801
Date of fiscal year end: June 30, 2003
Date of reporting period: December 31, 2003
Item 1. Reports to Stockholders.
The Registrant's semi-annual report transmitted to shareholders pursuant to Rule
30e-1 under the Investment Company Act of 1940 is as follows:
CDC Nvest Cash Management Trust - Money Market Series
[LOGO]
CDC Nvest Funds/SM/
CDC IXIS Asset Management Distributors
Semiannual Report
December 31, 2003
CDC Nvest Cash Management Trust -
Money Market Series
Reich & Tang Asset Management
TABLE OF CONTENTS
Management Discussion
and Performance ........Page 1
Schedule of
Investments ............Page 3
Financial Statements ...Page 4
Cash Management Trust -- Money Market Series
Portfolio Profile
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Objective:
Seeks maximum current income consistent with
preservation of capital and liquidity.
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Strategy:
Invests primarily in high-quality, short-term, U.S.
dollar-denominated money market investments issued by
U.S. and foreign issuers.
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Manager:
Molly J. Flewharty,
Reich & Tang Asset Management
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Annualized Seven-Day Yield
-- December 31, 2003
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Class A, B & C
CDC Nvest Cash Management Trust -- Money
Market Series 0.26%
Yields will fluctuate with changes in market conditions.
The seven-day money market yield reflects the Fund's current earnings more
closely than total return.
Average Annual Total Returns -- December 31, 2003
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Class A (Inception 7/10/78) 6 Months 1 Year 5 Years 10 Years
Net Asset Value/1/ 0.11% 0.37% 3.02% 3.84%
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Class B (Inception 9/13/93) 6 Months 1 Year 5 Years 10 Years
Net Asset Value/1/ 0.11% 0.37% 3.02% 3.84%
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Class C (Inception 3/1/98) 6 Months 1 Year 5 Years Since Inception
Net Asset Value/1/ 0.11% 0.37% 3.03% 3.29%
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/1/ These returns include reinvestment of distributions, represent past
performance and do not predict future results.
The Fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation (FDIC) or any other government agency. Although it seeks to maintain
a constant share price of $1.00, it is possible to lose money by investing in
the Fund.
1
Cash Management Trust -- Money Market Series
Management Discussion
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Historically low short-term interest rates continued to be the main story in the
money markets during the closing six months of 2003. Although yields on money
market instruments remain low, their relative price stability and liquidity
continue to make money market funds a useful cash management tool.
For the six months ended December 31, 2003, CDC Nvest Cash Management
Trust-Money Market Series maintained a constant price of $1.00 per share and
provided a total return of 0.11%, based on the net asset value of Class A shares
and $0.0011 per share in reinvested dividends. The fund's seven-day SEC yield as
of the end of December was 0.26%.
Money market funds face challenging environment
The fund's fiscal year began on July 1, 2003, right after the Federal Reserve
Board lowered the Fed Funds Rate - the rate that member banks charge each other
for overnight loans. Last June's 0.25% rate cut, which reflected the Fed's
concerns about prospective deflation, left rates at 1.00%. There were no
subsequent rate changes through the end of December.
However, as 2003 drew to a close, improving economic data reinforced the
perception that the U.S. economy was recovering. Moreover, at its December 2003
meeting, the Fed upgraded its outlook, indicating that it was no longer
concerned about the risk of deflation, and giving rise to the prospect of a
possible increase in interest rates to come.
Fund positioned to help maximize income
Throughout the period, we positioned the fund to generate as much income as
possible given the low level of money market interest rates. Although
longer-term money market securities offer higher yields than short-term issues,
the prospect of an increase in interest rates in the near future made us decide
not to risk locking the fund into longer-term securities. Consequently, we
looked for opportunities in the 30- to 90-day range. As these securities mature,
we will reinvest the proceeds in other securities with similar maturity ranges
until the time seems right to lengthen maturities.
At the start of the fund's fiscal year in July, its average maturity was 64
days. As of December 31, average maturity was 45 days. However, this does not
reflect a change in our strategy; maturities shift every day as we buy and sell
securities or as they mature.
Manager focused on yield with minimal risk
As always, commercial paper accounted for most of the fund's assets. These
securities typically offer higher yields than other types of money market
instruments, with only minimal additional risk. Also, because commercial paper
is generally in strong supply, it offers more compelling value.
Likelihood of interest-rate increase ahead
Economic data has been promising enough to convince most market observers that
the Fed is likely to raise interest rates sometime in the near future. The
consensus is for a move in June 2004, but some observers believe it may be as
late as 2005. Whatever their timetable, the Fed is likely to move gradually in
an effort to ensure that the recovery does not stall. Our forecast is for an
initial interest rate increase of 0.25%, with the potential for similar, modest
rate hikes down the road.
We expect to focus on securities that will mature in the first half of 2004 as
we await the Fed's next move. In our opinion, unemployment will be a key
indicator to watch because we don't believe the Fed will feel comfortable
raising rates until businesses begin hiring again.
This fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation (FDIC) or any other government agency. Although it seeks to maintain
a constant share price of $1.00, it is possible to lose money by investing in
the fund.
The portfolio manager's commentary reflects the conditions and actions taken
during the reporting period, which are subject to change. A shift in opinion may
result in strategic and other portfolio changes.
See the fund's prospectus for details.
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NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
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2
Cash Management Trust -- Money Market Series
Investments as of December 31, 2003 (unaudited)
Principal
Amount Description Value (a)
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Investments -- 103.2% of Total Net Assets
COMMERCIAL PAPER -- 83.1%
Airline -- 1.8%
$ 7,585,000 New York, NY, City Industrial
Development Agency, LLC,
1.200%, 7/01/2008(c) $ 7,585,000
--------------
Asset-Backed -- 13.2%
5,000,000 Triple A One Funding Corp., 144A,
1.090%, 1/05/2004 4,999,394
10,000,000 Triple A One Funding Corp., 144A,
1.080%, 1/08/2004 9,997,900
15,000,000 Ciesco LP, 144A, 1.080%, 1/12/2004 14,995,050
10,000,000 Ticonderoga Funding LLC, 144A, 1.090%,
1/26/2004 9,992,431
15,000,000 Lockhart Funding LLC, 144A, 1.150%,
2/11/2004 14,980,354
--------------
54,965,129
--------------
Banking -- 16.1%
5,000,000 Banco Continental de Panama SA, 1.120%,
2/10/2004 4,993,778
15,000,000 HBOS Treasury Services, 1.130%, 3/16/2004 14,964,687
15,000,000 Banco Rio de La Plata SA, 0.970%,
3/18/2004 14,968,880
5,000,000 HBOS Treasury Services, 1.105%, 3/19/2004 4,988,029
10,000,000 Banco Bilbao Vizcaya Argentaria Puerto
Rico, 1.130%, 4/02/2004 9,971,122
2,250,000 Banco Bilbao Vizcaya Argentaria Puerto
Rico, 1.190%, 4/02/2004 2,243,158
10,000,000 Banco Cuscatlan SA, 1.080%, 4/05/2004 9,971,500
5,000,000 Banco Bradesco SA, 144A, 1.240%,
6/14/2004 4,971,583
--------------
67,072,737
--------------
Building -- 8.2%
1,125,000 Shayeson-Huff Properties LLC, 1.300%,
11/01/2016(c) 1,125,000
2,755,000 Cardiology Building Associates LLC,
1.200%, 10/01/2021(c) 2,755,000
2,700,000 J&M LLC, 1.348%, 10/01/2026(c) 2,700,000
17,450,000 MOB Management Two LLC, 1.400%,
12/01/2026(c) 17,450,000
5,100,000 VWS McAdory Market LLC, 1.300%,
7/01/2027(c) 5,100,000
1,965,000 Daniel Land Co., 1.348%, 10/01/2027(c) 1,965,000
3,130,000 MOB Management One LLC, 1.400%,
12/01/2031(c) 3,130,000
--------------
34,225,000
--------------
Education -- 2.2%
9,000,000 Yale University, 1.070%, 2/02/2004 8,991,440
--------------
Financial Services -- 7.8%
5,000,000 Alliance & Leicester PLC, 144A, 1.035%,
1/07/2004 4,999,137
15,000,000 General Electric Capital Corp., 1.100%,
4/07/2004 14,955,542
5,000,000 General Electric Capital Corp., 1.230%,
10/15/2004 5,000,000
2,345,000 SSK Co. LLC, 1.300%, 11/01/2021(c) 2,345,000
2,035,000 Jobs Co. (The) LLC, 1.370%, 2/01/2022(c) 2,035,000
3,355,000 Alpine Capital Investments LLC, 1.310%,
9/15/2027(c) 3,355,000
--------------
32,689,679
--------------
Health Care Providers -- 4.3%
18,000,000 Dean Health Systems, Inc., 1.090%,
1/08/2004 17,996,185
--------------
Hospital -- 0.5%
2,235,000 Birmingham, AL, Special Care Facilities
Financing Authority, 1.348%, 9/01/2018(c) 2,235,000
--------------
Multi-Family -- 4.6%
2,500,000 New York, NY, City Housing Development
Corp., 1.100%, 1/15/2034(c) 2,500,000
2,100,000 Florida Housing Finance Corp., 1.100%,
4/01/2034(c) 2,100,000
10,000,000 New York State Housing Finance Agency
LLC, 1.100%, 11/01/2034(c) 10,000,000
4,544,838 Los Angeles, CA, Community Redevelopment
Agency, 1.300%, 12/15/2034 4,544,838
--------------
19,144,838
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Public Power/Utility -- 4.5%
$ 19,000,000 New Jersey Economic Development Authority
LLC, 1.200%, 9/01/2021(c) $ 19,000,000
--------------
Single-Family -- 1.2%
5,000,000 Connecticut State Housing Finance
Authority, 1.160%, 5/15/2033(c) 5,000,000
--------------
Special Purpose Entity -- 15.6%
20,000,000 Market Street Funding Corp, 144A, 1.100%,
1/09/2004 19,995,111
20,000,000 Special Purpose Accounts Receivable
Cooperative Corp.,
144A, 1.100%, 1/13/2004 19,992,667
10,000,000 Greyhawk Funding LLC, 144A, 1.115%,
1/20/2004 9,994,115
5,000,000 Greyhawk Funding LLC, 144A, 1.100%,
2/05/2004 4,994,653
10,000,000 Long Lane Master Trust IV, 144A, 1.120%,
2/17/2004 9,985,378
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64,961,924
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U.S. Government Agencies -- 3.1%
5,000,000 Federal Home Loan Mortgage Corp., 1.170%,
3/25/2004 4,986,350
3,000,000 Federal Home Loan Mortgage Corp., 1.300%,
11/02/2004 3,000,000
5,000,000 Federal National Mortgage Association,
1.500%, 11/16/2004 5,000,000
--------------
12,986,350
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Total Commercial Paper (Cost $346,853,282) 346,853,282
--------------
MEDIUM TERM NOTE -- 4.4%
15,000,000 Caterpillar Financial Services Corp.,
1.250%, 7/09/2004 15,000,000
--------------
Total Medium Term Note (Cost $15,000,000) 15,000,000
--------------
CERTIFICATES OF DEPOSIT -- 14.4%
10,000,000 Svenska Handelsbank NY, 1.080%, 1/15/2004 10,000,000
10,000,000 Credit Agricole Indosuez North America,
Inc., 1.048%, 1/16/2004 9,999,989
10,000,000 Rabobank Nederland NV NY,
1.043%, 1/22/2004 10,000,000
10,000,000 Harris Trust & Savings, 1.320%, 3/01/2004 9,999,917
10,000,000 Abbey National Treasury Service, 1.040%,
3/08/2004 9,999,819
5,000,000 UBS AG, Stamford CT, 1.095%, 3/15/2004 4,999,875
5,000,000 Credit Agricole Indosuez SA, 1.310%,
4/15/2004(c) 5,000,000
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Total Certificates of Deposit (Cost
$59,999,600) 59,999,600
--------------
TIME DEPOSITS -- 2.1%
8,800,000 BNP Paribas SA, 0.938%, 1/02/2004 8,800,000
--------------
Total Time Deposits (Cost $8,800,000) 8,800,000
--------------
SHORT TERM INVESTMENT -- 0.0%
22,494 Repurchase Agreement with Investors
Bank & Trust Co. dated 12/31/2003 at 0.75%
to be repurchased at $22,495 on 1/02/2004,
collateralized by $23,260 Federal National
Mortgage Association Bond, 7.00%, due
4/02/2009 valued at $23,704 22,494
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Total Short Term Investment (Cost $22,494) 22,494
--------------
Total Investments -- 103.2% (Identified
Cost $430,675,376)(b) 430,675,376
Other assets less liabilities (13,300,558)
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Total Net Assets -- 100.0% $ 417,374,818
--------------
(a) See Note 2a of Notes to Financial Statements.
(b) The aggregate cost for federal income tax purposes was $430,675,376.
(c) Floating rate notes are instruments whose interest rates vary with changes
in a designated base rate (such as the prime interest rate) on a specified
date (such as coupon date or interest payment date).
These instruments are payable on demand and are secured by letters of
credit or other credit support agreements from major banks. Maturity dates
shown represent the ultimate maturity of the note.
144A Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registrations, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $129,897,773 or 31.1% of net
assets.
3 See accompanying notes to financial statements.
Statement of Assets & Liabilities
December 31, 2003 (unaudited)
ASSETS
Investments, at value (Identified
cost $430,675,376) $ 430,675,376
Receivable for:
Shares sold 654,432
Interest 447,715
--------------
431,777,523
--------------
LIABILITIES
Payable for:
Shares redeemed 13,770,951
Dividends payable 2,419
Accrued expenses:
Management fees 151,736
Deferred Trustees' fees 168,957
Transfer agent 193,247
Accounting and administrative fees 44,453
Other expenses 70,942
--------------
14,402,705
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NET ASSETS $ 417,374,818
=============
Net assets consist of:
Paid in capital $ 417,307,622
Undistributed (overdistributed) net
investment income 67,382
Accumulated net realized gain (loss)
on investments (186)
--------------
NET ASSETS $ 417,374,818
==============
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets $ 383,755,503
==============
Shares of beneficial interest 383,689,994
==============
Net asset value and redemption price per share $ 1.00
==============
Class B shares:
Net assets $ 31,019,976
==============
Shares of beneficial interest 31,019,059
==============
Net asset value and redemption price per share $ 1.00
==============
Class C shares:
Net assets $ 2,599,339
==============
Shares of beneficial interest 2,598,783
==============
Net asset value and redemption price per share $ 1.00
==============
See accompanying notes to financial statements. 4
Statement of Operations
For the Six Months Ended December 31, 2003 (unaudited)
INVESTMENT INCOME
Interest $ 2,595,282
--------------
Expenses
Management fees 905,217
Trustees' fees and expenses 48,432
Accounting and administrative 186,162
Custodian fees 43,563
Transfer agent 790,420
Audit and tax services 12,815
Legal fees 24,028
Shareholder reporting 28,352
Registration fees 33,894
Miscellaneous 18,525
--------------
Total expenses 2,091,408
--------------
Net investment income 503,874
--------------
REALIZED GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) on investments - net 250
--------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 504,124
==============
5 See accompanying notes to financial statements.
Statements of Changes in Net Assets
Six Months
Ended
December 31, Year Ended
2003 June 30,
(unaudited) 2003
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FROM OPERATIONS
Net investment income $ 503,874 $ 3,936,662
Net realized gain (loss) on investments 250 1,073
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Increase (decrease) in net assets
resulting from operations 504,124 3,937,735
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FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A (463,100) (3,638,617)
Class B (37,127) (283,294)
Class C (3,647) (34,420)
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(503,874) (3,956,331)
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FROM CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares (a) 271,806,176 626,533,663
Net asset value of shares issued in
connection with the reinvestment of
dividends from net investment income
and distributions from net realized
gains 618,688 3,848,644
Cost of shares redeemed (314,007,554) (703,454,020)
------------- -------------
Decrease in net assets derived from capital
share transactions (41,582,690) (73,071,713)
------------- -------------
Total decrease in net assets (41,582,440) (73,090,309)
NET ASSETS
Beginning of period 458,957,258 532,047,567
------------- -------------
End of period $ 417,374,818 $ 458,957,258
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME $ 67,382 $ 67,382
============= =============
(a) Shares of the series are sold and redeemed at Net Asset Value ($1.00).
See accompanying notes to financial statements. 6
Financial Highlights
For a share outstanding throughout each period.
Income from
investment Less
operations: distributions:
-------------------------------------- -------------------------------------------
Net asset Net realized
value, and Dividends Distributions Net asset
beginning Net unrealized Total from from net from net value, Total
of investment gain (loss) on investment investment realized Total end of return
the period income investments operations income capital gains distributions the period (%)
---------- ---------- -------------- ---------- ---------- ------------- ------------- ---------- ------
CASH MANAGEMENT TRUST- MONEY MARKET SERIES
- ------------------------------------------
Class A,B,C
12/31/2003(b) $ 1.00 $ 0.0011 -- $ 0.0011 $ (0.0011) -- $ (0.0011) $ 1.00 0.1
6/30/2003 1.00 0.0076 -- 0.0076 (0.0076) -- (0.0076) 1.00 0.8
6/30/2002 1.00 0.0175 -- 0.0175 (0.0175)(a) -- (0.0175) 1.00 1.8
6/30/2001 1.00 0.0524 -- 0.0524 (0.0524)(a) -- (0.0524) 1.00 5.4
6/30/2000 1.00 0.0498 -- 0.0498 (0.0498)(a) -- (0.0498) 1.00 5.1
6/30/1999 1.00 0.0445 -- 0.0445 (0.0445)(a) -- (0.0445) 1.00 4.6
The subadviser to the Trust prior to June 1, 2001, was Back Bay Advisors, L.P.
Effective June 1, 2001, Reich & Tang Asset Management, LLC became the subadviser
to the Trust.
(a) Including net realized gain (loss) on investments.
(b) For the six months ended December 31, 2003 (unaudited).
(c) Computed on an annualized basis for periods of less than one year.
7 See accompanying notes to financial statements.
Ratios to average
net assets:
----------------------
Net assets, Net
end of Investment
the period Expenses income
(000's) (%) (%)
- ----------- -------- ----------
$ 417,375 0.92(c) 0.22(c)
458,957 0.88 0.77
532,048 0.91 1.75
545,151 0.84 5.27
603,916 0.84 4.96
664,609 0.84 4.96
8
Notes to Financial Statements
For the Six Months Ended December 31, 2003 (unaudited)
1. Organization. CDC Nvest Cash Management Trust (the "Trust") is organized as
Massachusetts business trust. The Trust is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company. The Declaration of Trust permits the Trustees to issue an
unlimited number of shares of the Trust.
CDC Nvest Cash Management Trust - Money Market Series (the "Money Market Fund")
offers Class A, Class B and Class C shares. The Money Market Fund seeks maximum
current income consistent with preservation of capital and liquidity.
Shares of the Money Market Fund are sold without a front end sales charge.
Shares acquired by exchange of shares of another CDC Nvest stock or bond fund
may be subject to a contingent deferred sales charge.
2. Significant Accounting Policies. The following is a summary of significant
accounting policies consistently followed by the Trust in the preparation of its
financial statements. The Trust's financial statements are prepared in
accordance with accounting principles generally accepted in the United States of
America that require the use of management estimates that affect the reported
amounts and disclosures in the financial statements. Actual results could differ
from those estimates.
a. Security Valuation. The Trust employs the amortized cost method of security
valuation as set forth in Rule 2a-7 under the 1940 Act which, in the opinion of
the Trustees of the Trust, represents the fair value of the particular security.
The amortized cost of a security is determined by valuing it at original cost
and thereafter assumes a constant accretion/amortization to maturity of any
discount/premium.
b. Repurchase Agreements. The Trust, through its custodian, receives delivery of
the underlying securities collateralizing repurchase agreements. It is the
Trust's policy that the market value of the collateral be at least equal to 102%
of the repurchase price including interest. The subadviser is responsible for
determining that the value of the collateral is at all times at least equal to
102% of the repurchase price. Repurchase agreements could involve certain risks
in the event of default or insolvency of the counterparty, including possible
delays or restrictions upon the Trust's ability to dispose of the underlying
security.
c. Security Transactions and Related Investment Income. Security transactions
are accounted for on trade date and interest income is recorded on an accrual
basis. Interest income is increased by the accretion of discount and decreased
by the amortization of premium. In determining net gain or loss on securities
sold, the cost of securities has been determined on an identified cost basis.
d. Federal Income Taxes. The Trust intends to meet the requirements of the
Internal Revenue Code applicable to regulated investment companies, and to
distribute to its shareholders substantially all of its net investment income.
Accordingly, no provision for federal income tax has been made. Distributions
from net investment income and short-term capital gains are treated as ordinary
income for tax purposes.
e. Dividends and Distributions to Shareholders. Dividends and distributions are
declared daily to shareholders of record at the time and are paid monthly.
Long-term gain distributions, if any, will be made annually. The timing and
characterization of certain income and capital gains distributions are
determined in accordance with federal tax regulations which may differ from
accounting principles generally accepted in the United States of America. These
differences are primarily due to deferred Trustee fees.
f. Other. The Money Market Fund invests primarily in a portfolio of money market
instruments maturing in 397 days or less whose ratings are within the two
highest rating categories of a nationally recognized rating agency or, if not
rated, are believed to be of comparable quality. The ability of the issuers of
the securities held by the Money Market Fund to meet their obligations may be
affected by foreign, economic, political and legal developments in the case of
foreign banks, foreign branches, or subsidiaries of U.S. banks, or domestic
economic developments in a specific industry, state or region.
3. Investment Transactions. For the six months ended December 31, 2003,
purchases and sales or maturities of short-term obligations (including
securities purchased subject to repurchase agreements) were $4,010,449,188 and
$4,037,516,782, respectively.
4. Management Fees and Other Transactions with Affiliates.
a. Management Fees. CDC IXIS Asset Management Advisers, L.P. ("CDC IXIS
Advisers") is the investment adviser to the Money Market Fund. Under the terms
of the management agreement, the Money Market Fund pays a management fee at the
following annual rates, calculated daily and payable monthly, based on the
Trust's average daily net assets:
Percentage of Average Daily Net Assets
--------------------------------------------
First Next Next Next Over
$500 $500 $500 $500 $2
Trust million million million million billion
- ----------------- ------- ------- ------- ------- -------
Money Market Fund 0.400% 0.375% 0.325% 0.275% 0.225%
9
Notes to Financial Statements (continued)
For the Six Months Ended December 31, 2003 (unaudited)
For the six months ended December 31, 2003, management fees for the Trust were
$905,217 (0.400% of average daily net assets).
CDC IXIS Advisers has agreed to voluntarily waive its management fee (and, to
the extent necessary bear other expenses of the Money Market Fund) in order to
preserve the net asset value of the Money Market Fund at $1.00 per share. This
expense limitation is voluntary and temporary and may be revised or terminated
at any time without notice. For the six months ended December 31, 2003, no
expenses were waived.
CDC IXIS Advisers has entered into a subadvisory agreement on behalf of the
Money Market Fund with Reich & Tang Asset Management, LLC ("Reich & Tang").
Payments to CDC IXIS Advisers are reduced by payments to the subadviser. CDC
IXIS Advisers and Reich & Tang are wholly owned subsidiaries of CDC IXIS Asset
Management North America, L.P. ("CDC IXIS North America"). Certain officers and
directors of CDC IXIS Advisers are also officers or Trustees of the Trust.
b. Accounting and Administrative Expense. CDC IXIS Asset Management Services,
Inc. ("CIS"), a wholly owned subsidiary of CDC IXIS North America, performs
certain accounting and administrative services for the Trust and has
subcontracted with Investors Bank & Trust Company ("IBT"), to serve as
subadministrator. Pursuant to the agreement between the Trust, CDC Nvest Funds
Trust I, CDC Nvest Funds Trust II, CDC Nvest Funds Trust III, CDC Nvest
Companies Trust I, Loomis Sayles Funds I, Loomis Sayles Funds II (the "Trusts"),
and CIS, the Money Market Fund pays CIS its pro rata portion of a group fee for
these services representing the higher amount based on the following
calculations:
(1) Percentage of Eligible Average
Daily Net Assets
-------------------------------------
First Next Over
$5 billion $5 billion $10 billion
---------- ---------- -----------
0.0675% 0.0625% 0.0500%
or
(2) The Money Market Fund's pro rata portion, allocated based on the
combined assets of the Trusts, of the annual aggregate minimum fee of
$5 million.
For the six months ended December 31, 2003, the Trust paid $186,162 to CIS for
accounting and administrative services.
Prior to October 1, 2003, the annual rate as a percentage of average daily net
assets was 0.0600% on the first $5 billion in average daily net assets, 0.0500%
on the next $5 billion in average daily net assets, and 0.0450% on average daily
net assets over $10 billion. The annual aggregate minimum fee was $3.4 million.
c. Transfer Agent Fees. CIS is the transfer and shareholder servicing agent for
the Money Market Fund and has subcontracted with Boston Financial Data Services
("BFDS") to serve as sub-transfer agent. The Money Market Fund pays CIS service
fees for servicing shareholder accounts. Classes A, B and C pay service fees
monthly representing the higher amount based on the following calculations:
(1) An annual aggregate fee determined by applying an annual fee rate
(see schedule below) to the eligible average daily net assets.
Eligible assets are the average daily net assets of all accounts in
the Money Market Fund.
First Next Over
$650 million $5 billion $5.65 billion
------------ ---------- -------------
0.239% 0.200% 0.195%
Each Class of shares is subject to a monthly class minimum
of $1,500.
or
(2) An allocated portion, based on eligible assets, of an aggregate
annual minimum fee of $1.2 million beginning September 15, 2003. For
the period from July 1, 2003 to September 14, 2003, the aggregate
anual minimum fee was $1.2 million. Effective January 1, 2004, the
annual minimum fee changed to $1.4 million.
In addition, pursuant to other servicing agreements, the classes pay service
fees to other firms that provide similar services for their own shareholder
accounts.
For the six months ended December 31, 2003, the Trust paid $558,696 to CIS as
compensation for its services as transfer agent. Additionally, the Trust paid
CIS, BFDS and other firms out-of-pocket expenses.
10
Notes to Financial Statements (continued)
For the Six Months Ended December 31, 2003 (unaudited)
d. Trustees Fees and Expenses. The Trust does not pay any compensation directly
to its officers or Trustees who are directors, officers or employees of CDC IXIS
Advisers, CDC IXIS Asset Management Distributors, L.P., CDC IXIS North America,
CIS or their affiliates. Each other Trustee receives a retainer fee at the
annual rate of $45,000 and meeting attendance fees of $4,500 for each meeting of
the Board of Trustees attended. Each committee member receives an additional
retainer fee at the annual rate of $7,000 while each committee chairman receives
a retainer fee (beyond the $7,000 fee) at the annual rate of $5,000. The
retainer fees assume four Board or Committee meetings per year; Trustees are
compensated for each additional Board or Committee meeting in excess of four per
year, at the rate of $4,500 and $1,750, respectively. These fees are allocated
to the various series of the Trusts based on a formula that takes into account,
among other factors, the relative net assets of each Fund. Trustees are
reimbursed for travel expenses in connection with attendance at meetings.
A deferred compensation plan (the "Plan") is available to the Trustees on a
voluntary basis. Each participating Trustee will receive an amount equal to the
value that such deferred compensation would have been had it been invested in
the Trust or certain other series of the Trusts on the normal payment date.
Deferred amounts remain in the Trust until distributed in accordance with the
Plan.
e. Publishing Services. CIS performs certain desktop publishing services for the
Trust. Fees for these services are presented in the statement of operations as
shareholder reporting. For the six months ended December 31, 2003, the Trust
paid $719 to CIS as compensation for these services.
11
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Item 2. Code of Ethics.
The Trust has adopted a code of Ethics that applies to the Trust's principal
executive officer, principal financial officer and persons performing similar
functions.
Item 3. Audit Committee Financial Expert.
The Board of Trustees of the Trust has established an audit committee. Ms.
Sandra O. Moose, Messrs. Edward A. Benjamin and Daniel M. Cain, all members of
the audit committee serve as financial experts. Each of these individuals is
also an Independent Trustee of the Trust.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5 and Item 6. [Reserved.]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment
Companies. Not applicable.
Item 8. [Reserved.]
Item 9. Controls and Procedures
The Trust's principal executive officer and principal financial officer have
concluded that the Trust's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Trust in this Form N-CSR
was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
There were no significant changes or corrective actions with regard to
significant deficiencies or material weaknesses in the Trust's internal controls
or in other factors that could significantly affect the Trust's internal
controls subsequent to the date of their evaluation.
Item 10. Exhibits.
(a) Code of Ethics.
(b) Certifications of Principal Executive Officer and Principal Financial
Officer.
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.
CDC Nvest Cash Management Trust
By: /s/ JOHN T. HAILER
----------------------------------
Name: John T. Hailer
Title: President and Chief Executive Officer
Date: February 24, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ JOHN T. HAILER
----------------------------------
Name: John T. Hailer
Title: President & Chief Executive Officer
Date: February 24, 2004
By:/s/ NICHOLAS PALMERINO
-----------------------------------
Name: Nicholas H. Palmerino
Title: Treasurer
Date: February 24, 2004
EXHIBIT INDEX
(a) Code of Ethics of CDC Nvest Cash Management Trust
(b)(1) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2 under the Investment Company Act of
1940
(b)(2) Certifications of principal executive officer and principal financial
officer as required by Section 906 of the Sarbanes-Oxley Act of 2002.