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
(Exact name of registrant as specified in charter)
399 Boylston Street, Boston, Massachusetts 02116
(Address of principal executive offices) (Zip code)
John E. Pelletier, Esq.
CDC IXIS Asset Management Distributors, L.P.
399 Boylston Street
Boston, Massachusetts 02116
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 449-2801
Date of fiscal year end: June 30, 2004
Date of reporting period: June 30, 2004
Item 1. Reports to Stockholders.
The Registrant's annual reports transmitted to shareholders pursuant to Rule
30e-1 under the Investment Company Act of 1940 is as follows:
[LOGO] CDC Nvest Funds(SM)
CDC IXIS Asset Management Distributors
Annual Report
June 30, 2004
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
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Cash Management Trust -- Money Market Series
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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 -- June 30, 2004
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Class A, B & C 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 -- June 30, 2004
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Class A (Inception 7/10/78) 1 Year 5 Years 10 Years
Net Asset Value/1/ 0.22% 2.62% 3.70%
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Class B (Inception 9/13/93) 1 Year 5 Years 10 Years
Net Asset Value/1/ 0.22% 2.62% 3.71%
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Class C (Inception 3/1/98) 1 Year 5 Years Since Inception
Net Asset Value/1/ 0.22% 2.62% 3.05%
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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.
Proxy Voting Information
A description of the fund's proxy voting policies and procedures is available
(i) without charge, upon request, by calling CDC Nvest Funds at 800-225-5478;
(ii) on the fund's website at www.cdcnvestfunds.com, and (iii) on the Securities
and Exchange Commission's website at www.sec.gov. Information regarding how the
fund voted proxies during the 12-month period ended June 30, 2004 is available
on the fund's website and the SEC's website.
1
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Cash Management Trust -- Money Market Series
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Management Discussion
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Historically low interest rates characterized the money markets during fiscal
2004. However, at the close of the period, welcome relief for money market
investors came in the form of a 0.25% hike in short-term interest rates - the
first increase in more than four years.
For the 12 months ended June 30, 2004, CDC Nvest Cash Management Trust -- Money
Market Series maintained a constant value of $1.00 per share and delivered a
total return of 0.22% based on the net asset value of Class A shares and
$0.00215 per share in reinvested dividends. The fund's seven-day SEC yield at
the end of June was 0.26%.
Maturity was managed to maximize income
Shortly before the fund's fiscal year began on July 1, 2003, the Federal Reserve
Board lowered the federal funds rate to 1%, the lowest level since 1958,
reflecting the Fed's concern about deflation as the economy slowed. The federal
funds rate is the rate banks charge one another on overnight loans, and it is a
sensitive indicator of general interest-rate trends. The Fed uses this rate to
influence the economy, cutting it to spur spending and demand when the economy
is weak, and raising it to slow economic growth when inflation threatens.
With yields so low, we strove to capture as much income as possible, focusing on
longer-term money market securities to lock in higher yields. At the start of
the fund's fiscal year, its average maturity was 64 days. However, as the year
wore on we suspected that the Fed might raise interest rates and we wanted to
maintain some flexibility to invest in higher-yielding securities should they
become available. Consequently, by the mid point in the fiscal year, December
31, 2003, we had trimmed the fund's average maturity to 45 days.
Rate hike will increase income for money market investors
Both the economy and inflation began to show signs of advancing early in 2004.
As the fund's fiscal year closed on June 30, 2004, the Fed boosted short-term
interest rates to 1.25%. With more interest rate increases almost certain
through year end, we reduced the fund's average maturity to free up additional
funds to invest in higher yielding securities down the road. As of June 30,
average maturity was 35 days.
Commercial paper, agency securities provide yield with liquidity and relative
safety
As is generally the case, commercial paper constituted the bulk of the fund's
assets. These securities typically offer higher yields than other types of money
market instruments, with only slightly higher risk. In addition, because
commercial paper is generally in strong supply - which keeps prices down - we
believe it offers greater value.
Beginning early in the period, we invested a portion of assets in U.S.
government agency securities to boost income without sacrificing safety. The
fund also maintained a substantial position in variable-rate demand instruments
- - which have yields that are reset periodically - because they represented good
value, in our opinion.
Further rate hikes expected by year end
In the statement that accompanied the Fed's most recent interest-rate decision,
policy makers said they view inflation prospects as moderate, which should make
it possible to increase rates at what the Fed described as a "measured" pace. We
expect rates to rise gradually through the remainder of the year, with at least
three more quarter-point increases, which would bring the key rate to about 2%
by the close of 2004.
Accordingly, we will continue to emphasize high-quality investments and keep
average maturity on the shorter side in the coming months. This should give us
the liquidity we need to invest in higher-yielding issues as they become
available.
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.
For more complete information on any CDC Nvest Fund, contact your financial
professional or call CDC IXIS Asset Management Distributors, L.P. and ask for a
free prospectus, which contains more complete information including charges and
other ongoing expenses. Investors should consider a fund's objective, risks and
expenses carefully before investing. This and other information can be found in
the prospectus. Please read the prospectus carefully before investing.
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NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
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2
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Cash Management Trust -- Money Market Series
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Investments as of June 30, 2004
Principal
Amount Description Value (a)
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Investments -- 100.4% of Total Net Assets
COMMERCIAL PAPER -- 89.5%
Airline -- 2.1%
$ 7,585,000 New York, NY, City Industrial Development Agency,
LLC, 1.160%, 7/01/2008(c) $ 7,585,000
------------
Asset-Backed -- 22.0%
16,000,000 Clipper Receivables Corp., 1.500%, 7/01/2004 16,000,000
5,000,000 Yorktown Capital LLC, 1.060%, 7/14/2004 4,998,086
5,000,000 FCAR Owner Trust I, 1.080%, 7/15/2004 4,997,900
5,000,000 Lexington Parker Capital Corp., 144A, 1.070%,
7/16/2004 4,997,771
3,000,000 ASAP Funding, Ltd., 144A, 1.300%, 7/23/2004 2,997,617
15,000,000 Fountain Square Commercial Funding Corp.,
144A, 1.080%, 14,983,800
8/06/2004
19,000,000 Lockhart Funding LLC, 144A, 1.200%, 8/06/2004 18,977,200
3,000,000 FCAR Owner Trust I, 1.120%, 8/16/2004 2,995,706
10,000,000 Ciesco LLC, 144A, 1.300%, 8/16/2004 9,983,389
------------
80,931,469
------------
Banking -- 13.5%
10,000,000 Banco Bilbao Vizcaya Argentaria/Puerto Rico,
1.040%, 7/01/2004 10,000,000
10,000,000 Banco Cuscatlan SA, 1.070%, 7/02/2004 9,999,703
5,000,000 Svenska Handelsbanken, Inc., 1.080%, 7/28/2004 4,995,950
5,000,000 Banco Bilbao Vizcaya Argentaria/Puerto Rico,
1.100%, 8/02/2004 4,995,111
10,000,000 DNB Nor Bank ASA, 1.500%, 9/21/2004 9,965,833
5,000,000 Banco Continental de Panama SA, 1.420%,
10/01/2004 4,981,856
5,000,000 Bank of America Corp., 1.050%, 1/28/2005 (c) 5,000,000
------------
49,938,453
------------
Building -- 9.3%
1,125,000 Shayeson-Huff Properties LLC, 1.420%,
11/01/2016 (c) 1,125,000
2,755,000 Cardiology Building Associates LLC, 1.340%,
10/01/2021 (c) 2,755,000
2,700,000 J&M LLC, 1.520%, 10/01/2026 (c) 2,700,000
17,450,000 MOB Management Two LLC, 1.650%, 12/01/2026 (c) 17,450,000
5,100,000 VWS McAdory Market LLC, 1.450%, 7/01/2027 (c) 5,100,000
1,965,000 Daniel Land Co., 1.520%, 10/01/2027 (c) 1,965,000
3,130,000 MOB Management One LLC, 1.650%, 12/01/2031 (c) 3,130,000
------------
34,225,000
------------
Education -- 2.4%
9,000,000 Yale University, 1.060%, 7/14/2004 8,996,555
------------
Financial Services -- 10.2%
5,000,000 Private Export Funding Corp., 144A, 1.050%,
7/13/2004 4,998,249
10,000,000 Alliance & Leicester PLC, 144A, 1.075%, 7/15/2004 9,995,819
10,000,000 Alliance & Leicester PLC, 144A, 1.140%,
10/12/2004 9,967,384
5,000,000 General Electric Capital Corp., 1.359%,
2/16/2005 (c) 5,000,000
2,345,000 SSK Co. LLC, 1.370%, 11/01/2021 (c) 2,345,000
1,970,000 Jobs Co. (The) LLC, 1.790%, 2/01/2022 (c) 1,970,000
3,285,000 Alpine Capital Investments LLC, 1.350%,
9/15/2027 (c) 3,285,000
------------
37,561,452
------------
General Purpose -- 1.3%
5,000,000 Michigan State, 1.400%, 12/01/2004 5,000,000
------------
Health Care Providers -- 4.1%
15,000,000 Dean Health Systems, Inc., 1.198%, 7/11/2004 14,995,006
------------
Hospital -- 0.6%
2,235,000 Birmingham, AL, Special Care Facilities Financing
Authority, 1.520, 9/01/2018(c) 2,235,000
------------
Multi-Family -- 1.8%
$ 2,100,000 Florida Housing Finance Corp., 1.350%,
4/01/2034 (c) $ 2,100,000
4,544,838 Los Angeles, CA, Community Redevelopment Agency,
(Security Building), 1.260%, 12/15/2034 (c) 4,544,838
------------
6,644,838
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Public Power/Utility -- 5.1%
19,000,000 New Jersey Economic Development Authority LLC,
1.160%, 9/01/2021 (c) 19,000,000
------------
Single-Family -- 1.4%
5,000,000 Connecticut State Housing Finance Authority,
1.200%, 5/15/2033 (c) 5,000,000
------------
Special Purpose Entity -- 13.5%
10,678,000 Long Lane Master Trust IV, 144A, 1.120%,
7/07/2004 10,676,007
5,000,000 Market Street Funding Corp, 144A, 1.210%,
7/14/2004 4,997,815
15,000,000 Greyhawk Funding LLC, 144A, 1.150%, 7/15/2004 14,993,292
10,000,000 Market Street Funding Corp, 144A, 1.280%,
7/22/2004 9,992,533
9,000,000 American Health Centers, Inc., 1.420%,
3/01/2019 (c) 9,000,000
------------
49,659,647
------------
U.S. Government Agencies -- 2.2%
2,000,000 Federal Home Loan Bank, 1.500%, 5/04/2005 2,000,000
4,000,000 Federal National Mortgage Association, 1.750%,
5/23/2005 4,000,000
2,000,000 Federal Home Loan Bank, 2.020%, 6/08/2005 2,000,000
------------
8,000,000
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Total Commercial Paper (Cost $329,772,420) 329,772,420
------------
TIME DEPOSITS -- 4.1%
15,200,000 BNP Paribas SA, 1.470%, 1/02/2004 15,200,000
------------
Total Time Deposits (Cost $15,200,000) 15,200,000
------------
MEDIUM TERM NOTE -- 4.1%
15,000,000 Caterpillar Financial Services Corp., 1.240%,
7/09/2004 (c) 15,000,000
------------
Total Medium Term Note (Cost $15,000,000) 15,000,000
------------
CERTIFICATES OF DEPOSIT -- 2.7%
10,000,000 Credit Agricole Indosuez SA, 1.125%, 9/30/2004 10,002,714
------------
Total Certificates of Deposit (Cost $10,002,714) 10,002,714
------------
SHORT TERM INVESTMENT -- 0.0%
94,396 Repurchase Agreement with Investors Bank & Trust
Co. dated 6/30/2004 at 0.70% to be repurchased
at $94,398 on 7/01/2004, collateralized by
$98,834 Government National Mortgage
Association Bond, 3.50%, due 3/20/2032 valued at
$99,116 94,396
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Total Short Term Investment (Cost $94,396) 94,396
------------
Total Investments -- 100.4% (Identified
Cost $370,069,530) (b) 370,069,530
Other assets less liabilities (1,523,438)
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Total Net Assets -- 100.0% $368,546,092
------------
(a) See Note 2a of Notes to Financial Statements.
(b) The aggregate cost for federal income tax purposes was $370,069,530. At
June 30, 2004, the components of distributable earnings, on a tax basis
consisted of $200,537 of undistributed ordinary income and $0 of long-term
gains.
(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 notes.
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 $117,560,876 or 31.9% of net
assets.
See accompanying notes to financial statements.
3
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Statement of Assets & Liabilities
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June 30, 2004
ASSETS
Investments, at value (Identified Cost $370,069,530) $370,069,530
Receivable for:
Shares sold 615,843
Interest 223,981
------------
370,909,354
------------
LIABILITIES
Payable for:
Shares redeemed 1,805,677
Dividends payable 666
Accrued Expenses:
Management fees 120,484
Deferred Trustees' fees 177,333
Transfer agent 157,287
Accounting and administrative fees 21,801
Other expenses 80,014
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2,363,262
------------
NET ASSETS $368,546,092
============
Net assets consist of:
Paid in capital $368,519,636
Undistributed (overdistributed) net investment income 26,456
------------
NET ASSETS $368,546,092
============
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets $338,216,682
============
Shares of beneficial interest 338,188,738
============
Net asset value and redemption price per share $ 1.00
============
Class B shares:
Net assets $ 27,802,745
============
Shares of beneficial interest 27,804,732
============
Net asset value and redemption price per share $ 1.00
============
Class C shares:
Net assets $ 2,526,665
============
Shares of beneficial interest 2,526,381
============
Net asset value and redemption price per share $ 1.00
============
See accompanying notes to financial statements.
4
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Statement of Operations
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For the Year Ended June 30, 2004
INVESTMENT INCOME
Interest $4,870,765
----------
Expenses
Management fees 1,697,447
Trustees' fees and expenses 63,559
Accounting and administrative 297,699
Custodian fees 79,625
Transfer agent 1,626,983
Audit and tax services 24,189
Legal fees 28,031
Shareholder reporting 88,521
Registration fees 57,940
Miscellaneous 36,119
----------
Total expenses 4,000,113
----------
Net investment income 870,652
----------
REALIZED GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) on investments - net 806
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 871,458
==========
See accompanying notes to financial statements.
5
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Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
Year Ended Year Ended
June 30, June 30,
2004 2003
------------- -------------
FROM OPERATIONS
Net investment income $ 870,652 $ 3,936,662
Net realized gain (loss) on investments 806 1,073
------------- -------------
Increase in net assets resulting from
operations 871,458 3,937,735
------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income
Class A (839,709) (3,638,617)
Class B (66,133) (283,294)
Class C (6,107) (34,420)
------------- -------------
(911,949) (3,956,331)
------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares (a) 492,470,482 626,533,663
Net asset value of shares issued in
connection with the reinvestment of
dividends from net investment income and
distributions from net realized gains 891,507 3,848,644
Cost of shares redeemed (583,732,664) (703,454,020)
------------- -------------
Decrease in net assets derived from capital
share transactions (90,370,675) (73,071,713)
------------- -------------
Total decrease in net assets (90,411,166) (73,090,309)
NET ASSETS
Beginning of period 458,957,258 532,047,567
------------- -------------
End of period $ 368,546,092 $ 458,957,258
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME $ 26,456 $ 67,382
============= =============
(a) Shares of the series are sold and redeemed at net asset value ($1.00).
See accompanying notes to financial statements.
6
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Financial Highlights
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For a share outstanding throughout each period.
Income from investment operations: Less distributions:
-------------------------------------------------- ----------------------------------------------------------------
Net asset
value, Net realized Dividends Distributions Net asset
beginning Net and unrealized Total from from from net value, Total
of investment gain (loss) on investment net investment realized Total end of return
the period income investments operations income capital gains distributions the period (%)
---------- ---------- -------------- ---------- -------------- ------------- ------------- ---------- ------
Class A,B,C
6/30/2004 $1.00 $0.0022 $-- $0.0022 $(0.0022) $-- $(0.0022) $1.00 0.2
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
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.
See accompanying notes to financial statements.
7
Ratios to average net assets:
-----------------------------
Net assets, Net
end of investment
the period Expenses income
(000's) (%) (%)
- ----------- -------- ----------
$368,546 0.94 0.21
458,957 0.88 0.77
532,048 0.91 1.75
545,151 0.84 5.27
603,916 0.84 4.96
8
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Notes To Financial Statements
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For the Year Ended June 30, 2004
1. Organization. CDC Nvest Cash Management Trust - Money Market Series (the
"Trust") is organized as a 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.
The Trust offers Class A, Class B and Class C shares. The Trust's investment
goal is to seek maximum current income consistent with preservation of capital
and liquidity.
Shares of the Trust are sold without a front end sales charge. Shares acquired
by exchange of shares of another CDC Nvest or Loomis Sayles 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, including interest. 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 securities.
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 Trust invests primarily in a portfolio of money market instruments
maturing in 397 days or less and 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 Trust 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 year ended June 30, 2004, purchases and
sales or maturities of short-term obligations (including securities purchased
subject to repurchase agreements) were $7,523,355,552 and $7,613,830,978,
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 Trust. Under the terms of the
management agreement, the Trust 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 million $500 million $500 million $500 million $2 billion
- ------------ ------------ ------------ ------------ ----------
0.400% 0.375% 0.325% 0.275% 0.225%
9
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Notes To Financial Statements (continued)
- --------------------------------------------------------------------------------
For the Year Ended June 30, 2004
For the year ended June 30, 2004, management fees for the Trust were $1,697,447
(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 Trust) in order to preserve the
net asset value of the Trust 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 year ended June 30, 2004, no expenses were waived.
CDC IXIS Advisers has entered into a subadvisory agreement on behalf of the
Trust 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 ("CDC Nvest Funds Trusts"), Loomis Sayles Funds I, and Loomis
Sayles Funds II ("Loomis Sayles Funds Trusts") (collectively, the "Trusts"), and
CIS, the Trust 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 Trust's pro rata portion, allocated based on the combined
assets of the Trusts, of the annual aggregate minimum fee of $5
million.
For the year ended June 30, 2004, the Trust paid $297,699 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% of the first $5 billion in average daily net assets, 0.0500%
of the next $5 billion in average daily net assets, and 0.0450% of average daily
net assets over $10 billion. The annual minimum aggregate fee was $3.4 million.
c. Transfer Agent Fees. CIS is the transfer and shareholder servicing agent for
the Trust and has subcontracted with Boston Financial Data Services ("BFDS") to
serve as sub-transfer agent. The Trust 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 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 Class A, Class B and Class
C accounts in the Trust.
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 annual minimum fee of $1.4 million beginning January 1, 2004.
For the period from July 1, 2003 to September 14, 2003, an allocated
portion of the annual aggregate minimum fee of $1.2 million. For the
period September 15, 2003 through December 31, 2003, an allocated
portion of the annual aggregate minimum fee of $343,464.
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 year ended June 30, 2004, the Trust paid $1,245,781 to CIS as
compensation for its services as transfer agent. Additionally, the Trust
reimbursed CIS, BFDS and other firms for out-of-pocket expenses.
10
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Notes To Financial Statements (continued)
- --------------------------------------------------------------------------------
For the Year Ended June 30, 2004
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 its 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 also
reimbursed for travel expenses in connection with attendance at meetings.
Effective July 1, 2004, each independent Trustee will receive, in the aggregate,
a retainer fee at the annual rate of $50,000 and meeting attendance fees of
$5,000 for each meeting of the Board of Trustees that he or she attends. Each
committee chairman will receive an additional retainer fee at the annual rate of
$7,000. Each Trustee will be compensated $3,750 per Committee meeting that he or
she attends.
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 year ended June 30, 2004, the Trust paid $877 to
CIS as compensation for these services.
11
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Report of Independent Registered Public Accounting Firm
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of CDC Nvest Cash Management Trust - Money
Market Series
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statement of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of CDC Nvest Cash Management Trust -
Money Market Series (the "Trust") at June 30, 2004, and the results of its
operations, the changes in its net assets and the financial highlights for the
periods indicated, in conformity with accounting principles generally accepted
in the United States of America. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at June 30, 2004 by correspondence with the
custodian, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
August 6, 2004
12
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Trustees' Information
- --------------------------------------------------------------------------------
The Trust is governed by a Board of Trustees, which is responsible for generally
overseeing the conduct of Trust business and for protecting the interests of
shareholders. The Trustees meet periodically throughout the year to oversee the
Trust's activities, review contractual arrangements with companies that provide
services to the Trust and review the Trust's performance.
Position(s) Held with the Number of Portfolios in
Trust, Term of Office Principal Occupation(s) Fund Complex Overseen and
Name, Age and Address and Length of Time Served During Past 5 Years** Other Directorships held
- --------------------------- ------------------------- ------------------------------ ------------------------------
INDEPENDENT TRUSTEES
Graham T. Allison, Jr. (64) Trustee, Douglas Dillon Professor and 41;
399 Boylston Street Contract Review and Director for the Belfer Center Trustee, Loomis Sayles Funds
Boston, MA 02116 Governance Committee of Science and International Trusts; Director, Taubman
Member; Affairs, John F. Kennedy Centers, Inc.; Advisory Board
Until retirement* School of Government, Member, USEC Inc.
20 Years Harvard University
Edward A. Benjamin (66) Trustee, Retired 41;
399 Boylston Street Audit Committee Member Trustee, Loomis Sayles Funds
Boston, MA 02116 Until retirement* Trusts; Director, Coal, Energy
1 year Investments & Management, LLC;
Director, Precision Optics
Corporation (optics
manufacturer)
Daniel M. Cain (59) Trustee, President and CEO, Cain 41;
360 Madison Avenue Chairman of the Audit Brothers & Company, Trustee, Loomis Sayles Funds
New York, NY 10017 Committee Incorporated (investment Trusts; Trustee, Universal
Until retirement* banking) Health Realty Income Trust;
8 Years Director, Sheridan Healthcorp
Paul G. Chenault (70) Trustee, Retired; Trustee, First 41;
5852 Pebble Beach Way Contract Review and Variable Life (variable life Trustee, Loomis Sayles
San Luis Obispo, CA 93401 Governance Committee insurance) Funds Trusts; Director,
Until retirement* Mailco Office Products, Inc.
1 year
Kenneth J. Cowan (72) Trustee, Retired 41;
399 Boylston Street Chairman of the Contract Trustee, Loomis Sayles
Boston, MA 02116 Review and Governance Funds Trusts
Committee
Until retirement*
29 Years
Richard Darman (61) Trustee, Partner, The Carlyle Group 41;
399 Boylston Street Contract Review and (investments); Chairman of the Trustee, Loomis Sayles
Boston, MA 02116 Governance Committee Board of Directors of AES Funds Trusts; Director and
Member Corporation (international Chairman, AES Corporation
Until retirement* power company); formerly,
8 Years Professor, John F. Kennedy
School of Government, Harvard
University
13
- --------------------------------------------------------------------------------
Trustees' Information
- --------------------------------------------------------------------------------
Position(s) Held with the Number of Portfolios in
Trust, Term of Office Principal Occupation(s) Fund Complex Overseen and
Name, Age and Address and Length of Time Served During Past 5 Years** Other Directorships held
- --------------------------- ------------------------- ------------------------------ ------------------------------
INDEPENDENT TRUSTEES
continued
Sandra O. Moose (62) Trustee, President, Strategic Advisory 41;
One Exchange Place Audit Committee Member Services (management con- Trustee, Loomis Sayles
Boston, MA 02109 Until retirement* sulting); formerly, Senior Funds Trusts; Director,
22 years Vice President and Director, Verizon Communications;
The Boston Consulting Group, Director, Rohm and Haas
Inc. (management consulting) Company (specialty chemicals)
John A. Shane (71) Trustee, President, Palmer Service 41;
200 Unicorn Park Drive Contract Review and Corporation (venture capital Trustee, Loomis Sayles
Woburn, MA 01801 Governance Committee organization) Funds Trusts; Director,
Member Gensym Corporation;
Until retirement* Director, Overland Storage,
22 years Inc.; Director, Abt
Associates Inc.
INTERESTED TRUSTEES
Robert J. Blanding/1/ (57) Trustee, President, Chairman, Director 41;
555 California Street Not Applicable and Chief Executive Officer, Trustee, Loomis Sayles
San Francisco, CA 94104 1 year Loomis Sayles Funds Trusts
John T. Hailer/2/ (43) Trustee, President and Chief Executive 41;
399 Boylston Street President and CEO Officer, CDC IXIS Asset Trustee, Loomis Sayles
Boston, MA 02116 Not Applicable Management Distributors, L.P.; Funds Trusts
3 years Executive Vice President,
Loomis Sayles Funds I;
President, Loomis Sayles Funds
II; formerly, Senior Vice
President, Fidelity
Investments
Peter S. Voss/3/ (57) Trustee, Chairman and Chief 41;
399 Boylston Street Chairman of the Board, Executive Officer, CDC IXIS Trustee, Loomis Sayles
Boston, MA 02116 Not Applicable Asset Management; Funds Trusts; Trustee,
12 years Chairman, President and Harris Associates Investment
Chief Executive Officer, CDC Trust/5/
IXIS Asset Management
North America, L.P.
OFFICERS
Nicholas H. Palmerino (38) Treasurer; Senior Vice President, CDC Not Applicable
399 Boylston Street 1 year IXIS Asset Management
Boston, MA 02116 Services, Inc.; Senior Vice
President, CDC IXIS Asset
Management Advisers, L.P.;
formerly, Vice President,
Loomis, Sayles & Company, L.P.
14
- --------------------------------------------------------------------------------
Trustees' Information
- --------------------------------------------------------------------------------
Position(s) Held with the Number of Portfolios in
Trust, Term of Office Principal Occupation(s) Fund Complex Overseen and
Name, Age and Address and Length of Time Served During Past 5 Years** Other Directorships held
- --------------------------- ------------------------- ------------------------------ ----------------------------
OFFICERS
(continued)
John E. Pelletier (40) Secretary, Senior Vice President, General Not Applicable
399 Boylston Street Chief Legal Officer Counsel, Secretary and Clerk,
Boston, MA 02116 6 years as Secretary CDC IXIS Distribution
Less than 1 year as Chief Corporation; Executive Vice
Legal Officer President, General Counsel,
Secretary and Clerk, CDC IXIS
Asset Management Distributors,
L.P.; Executive Vice
President, General Counsel,
Secretary and Clerk, CDC IXIS
Asset Management Advisers,
L.P.; Executive Vice
President, General Counsel,
Secretary, Clerk, and
Director, CDC IXIS Asset
Management Services, Inc.
Frank LoPiccolo (50) Anti-Money Laundering Senior Vice President, CDC Not Applicable
399 Boylston Street Officer IXIS Asset Management, Inc.
Boston, MA 02116 1 year
* All Trustees serve until retirement, resignation or removal from the Board.
The current retirement age is 72. At a meeting held on February 27, 2004,
the Trustees voted to suspend the retirement policy until 2005.
** Each person listed above holds the same position(s) with the CDC Nvest
Funds and Loomis Sayles Funds Trusts. Previous positions during the past
five years with the Distributor, CDC IXIS Advisers or Loomis Sayles are
omitted, if not matrially different from a Trustee's or Officer's current
position with such entity. As indicated, each Trustee is also a Trustee of
certain other investment companies for which the Distributor acts as
principal underwriter.
/1/ Mr. Blanding is deemed an "interested person" of the CDC Nvest Funds Trusts
and the Loomis Sayles Funds Trusts because he holds the following positions
with affiliated persons of the Trusts: President, Chairman, Director and
Chief Executive Officer of Loomis Sayles.
/2/ Mr. Hailer is deemed an "interested person" of the Trust because he holds
the following positions with affiliated persons of the Trusts: Director and
Executive Vice President of CDC IXIS Asset Management Distribution
Corporation ("CDC IXIS Distribution Corporation"); and President and Chief
Executive Officer of CDC IXIS Advisers.
/3/ Mr. Voss is deemed an "interested person" of the Trust because he holds the
following positions with affiliated persons of the Trust: Director of CDC
IXIS Asset Management Services, Inc. ("CIS"); Director of CDC IXIS
Distribution Corporation; Director and Chairman of CDC IXIS Asset
Management Associates Inc.; Director of AEW Capital Management, Inc.;
Director of Harris Associates, Inc.; Director of Loomis Sayles; Member of
Reich & Tang Asset Management, LLC; Director of Westpeak Investment
Advisors, Inc.; Director of Vaughan Nelson Investment Management, L.P.;
Director, Hansberger Group, Inc.; Member, Board of Managers, Harris
Alternatives L.L.C.; and Director and Member of the Executive Board of CDC
IXIS Asset Management.
/4/ As of December 31, 2003, Harris Associates Investment Trust had seven
series that were overseen by its Board of Trustees.
15
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, a copy of which is filed as Exhibit (a)(1) filed herewith.
Item 3. Audit Committee Financial Expert.
The Board of Trustees of the Trust has established an audit committee. Ms.
Sandra O. Moose, and Messrs. Edward A. Benjamin and Daniel M. Cain, all members
of the audit committee, have been designated as financial experts. Each of these
individuals is also an Independent Trustee of the Trust.
Item 4. Principal Accountant Fees and Services.
Fees paid to Principal Accountant by the Fund. The table below sets forth fees
billed by the principal accountant, PricewaterhouseCoopers LLP, for the past two
fiscal years for professional services rendered in connection with a) the audit
of the Trust's annual financial statements and services provided in connection
with regulatory filings; b) audit-related services (including services that are
reasonably related to the performance of the audit of the registrant's financial
statements and but not reported under "Audit Fees"); c) tax compliance, tax
advice and tax planning and d) all other fees billed for professional services
rendered by the principal accountant to the Trust, other than the services
provided reported as a part of (a) through (c) of this Item.
Audit-related
Audit fees fees/1/ Tax fees/2/ All other fees
- -----------------------------------------------------------------------------------------
2003 2004 2003 2004 2003 2004 2003 2004
- -----------------------------------------------------------------------------------------
Cash Management Trust $22,300 $22,300 N/A N/A 1,900 1,900 N/A N/A
- -----------------------------------------------------------------------------------------
Aggregate fees billed to the Trust for non-audit services for 2004 and 2003 were
$1,900 and $1,900 respectively.
Fees paid to Principal Accountant By Adviser and Control Affiliates. The
following table sets forth the non-audit services provided by the Trust's
principal accountant to CDC IXIS Asset Management Advisers, L.P. and entities
controlling, controlled by or under common control with CDC IXIS Asset
Management Advisers, L.P. that provide ongoing services to the Trust ("Control
Affiliates") for the last two fiscal years.
Audit-related fees/1/ Tax fees All other fees
- ----------------------------------------------------------------------------
2003 2004 2003 2004 2003 2004
- ----------------------------------------------------------------------------
Control Affiliates $91,000 $102,239 N/A N/A N/A N/A
- ----------------------------------------------------------------------------
/1/. The audit related fees consist of performing a SAS 70 internal examination
for one Trust affiliate and the review of anti-money laundering procedures
for the Trust's transfer agent.
Aggregate fees billed to Control Affiliates for non-audit services during 2004
and 2003 were $122,239 and $110,000, respectively
None of the services described above were approved pursuant to (c)(7)(i)(C) of
Regulation S-X.
Audit Committee Pre Approval Policies.
Annually, the Trust's Audit Committee reviews the audit, audit-related, tax
and other non-audit services together with the projected fees, for services
proposed to be rendered to the Trust and/or other
entities for which pre-approval is required during the upcoming year. Any
subsequent revisions to already pre-approved services or fees (including fee
increases) and requests for pre-approval of new services would be presented for
consideration quarterly as needed.
If, in the opinion of management, a proposed engagement by the Trust's
independent accountants needs to commence before the next regularly scheduled
Audit Committee meeting, any member of the Audit Committee who is an independent
Board member is authorized to pre-approve the engagement, but only for
engagements to provide audit, audit related and tax services. This approval is
subject to review of the full Audit committee at its next quarterly meeting. All
other engagements require the approval of all the members of the audit
committee.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
Included as part of the Report to Shareholders filed as Item 1 herewith.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Purchases of Equity Securities by Closed-End Management Investment
Companies and Affiliated Purchasers.
Not Applicable.
Item 9. Submission of Matters to a Vote of Securities Holders.
There were no material changes to the procedures by which shareholders may
recommend nominees to the Registrant's Board of Trustees.
Item 10. 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 11. Exhibits.
(a) (1) Code of Ethics is filed herewith.
(a) (2) Certifications of Principal Executive Officer and Principal
Financial Officer pursuant to 30a-2 under the Investment Company
Act of 1940 (17 CFR 270.30a-2), as herewith as exhibit (a)(2)(1)
and (a)(2)(2)
(a) (3) Not applicable.
(b) Certification of Principal Executive Officer and Principal
Financial Officer pursuant to Section 906 of Sarbanes-Oxley Act
of 2002 are filed herewith as Exhibit (b)
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 Cash Management Trust
By: /s/ John T. Hailer
--------------------------------------
Name: John T. Hailer
Title: President & Chief Executive Officer
Date: August 20, 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: August 20, 2004
By: /s/ Nicholas H. Palmerino
--------------------------------------
Name: Nicholas H. Palmerino
Title: Treasurer
Date: August 20, 2004