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
IXIS Advisor 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)
Coleen Downs Dinneen, Esq.
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) 449-2810
Date of fiscal year end: June 30
Date of reporting period: June 30, 2005
Item 1. Reports to Stockholders.
The Registrant's annual report transmitted to shareholders pursuant to Rule
30e-1 under the Investment Company Act of 1940 is as follows:
[LOGO]
IXIS ADVISOR FUNDS
Annual Report
June 30, 2005
IXIS Cash Management Trust -
Money Market Series
Reich & Tang Asset Management
TABLE OF CONTENTS
Management Discussion Page 2
and Performance........
Schedule of Investments Page 7
Financial Statements... Page 9
IXIS 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 -- June 30, 2005
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Class A, B & C 2.47%
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/1/ -- June 30, 2005
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Class A (Inception 7/10/78) 1 Year 5 Years 10 Years
Net Asset Value 1.27% 1.86% 3.35%
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Class B (Inception 9/13/93) 1 Year 5 Years 10 Years
Net Asset Value 1.27% 1.86% 3.36%
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Class C (Inception 3/1/98) 1 Year 5 Years Since Inception
Net Asset Value 1.27% 1.86% 2.80%
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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
without charge, upon request, by calling IXIS Advisor Funds at 800-225-5478; on
the Fund's website at www.ixisadvisorfunds.com; and on the Securities and
Exchange Commission's website at www.sec.gov. Information regarding how the
Fund voted proxies relating to portfolio securities during the 12-month period
ended June 30, 2005 is available from the Fund's website and the SEC's website.
Quarterly Portfolio Schedules
The Fund files a complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q
are available on the SEC's website at www.sec.gov and may be reviewed and
copied at the SEC's Public Reference Room in Washington, DC. Information on the
operation of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
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 IXIS Advisor Fund, contact your financial
professional or call IXIS Advisor Funds 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.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
1
IXIS CASH MANAGEMENT TRUST -- MONEY MARKET SERIES
Management Discussion
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During the past 12 months, the Federal Reserve Board continued its campaign of
boosting short-term interest rates, increasing yields on money market
investments. This was welcome news for investors who had grown accustomed to a
flat or declining rate environment.
Throughout the fiscal year ended June 30, 2005, IXIS Cash Management Trust --
Money Market Series maintained a constant price of $1.00 per share, and
provided a total return of 1.27% based on the net asset value of class A shares
and $0.0126 per share in reinvested dividends. The fund's seven-day annualized
yield at the end of the period was 2.47%.
SHORT-TERM INTEREST RATES CONTINUE TO CLIMB
The fund's fiscal year began on July 1, 2004, shortly after a 0.25% hike in
short-term interest rates. This increase was the first in four years, and
brought the federal funds rate (the rate that member banks charge each other
for overnight loans) up to 1.25%. The Fed followed with four additional 0.25%
rate increases, bringing the key rate to 2.25% at the end of December - the
mid-point in the fund's fiscal year.
Faced with healthy economic growth and hoping to keep inflation at bay, the Fed
continued its tightening program in 2005, raising rates another four times in
increments of 0.25%. The latest rate increase on June 30 brought the federal
funds rate to 3.25%. The Fed uses interest rates to manage the economy, cutting
rates to spur growth during recessions, and raising rates to head off inflation
when the economy is accelerating.
Currently, inflation remains low even though oil prices, in absolute terms,
have climbed to record levels. Fierce competition in many industries has
prevented companies from passing on higher fuel prices to consumers. However,
the Fed is not entirely satisfied with the inflation picture. In a recent
statement, the Fed described its monetary policy as "accommodative" - a term
that implies rates are too low to meet the central bank's long-term goal of
keeping inflation in check.
FUND POSITIONED TO CAPTURE HIGHER YIELDS
Over the past 12 months, our strategy with the fund's portfolio has remained
consistent. Given the low, albeit rising, level of interest rates available to
money market investors, we strove to capture as much income as possible while
maintaining the flexibility to pursue higher rates as they become available.
Although money market securities with longer maturities offer a yield advantage
over short-term issues, we generally felt that it was not worth the risk of
locking in yields when higher interest rates might be right around the corner.
As a result, we kept the fund's average maturity on the shorter side in an
effort to help us move quickly to take advantage of higher yielding issues when
they became available.
At the start of the fund's fiscal year in July 2004, its average maturity was
35 days. By mid-year, on December 31, 2004, the average maturity was 20 days.
As of June 30, 2005, the fund's average maturity was 18 days.
COMMERCIAL PAPER REMAINS CORE OF PORTFOLIO
Typically, when the economy appears to be healthy, commercial paper makes up
the majority of the fund's assets. These securities - issued by companies
rather than the U.S. government - tend to offer higher yields than other types
of money market instruments, with only minimal additional risk, especially on
the shorter end of the maturity spectrum. During periods of economic
uncertainty, we tend to emphasize government and agency securities because of
the additional safety they offer.
Currently, the economy appears to be on a relatively safe footing and there is
less concern about credit downgrades. Consequently, as the fund's remaining
government and agency securities came due during the past six months, we
redeployed the proceeds in other money market instruments and no U.S.
government securities remained in the June 30, 2005 portfolio.
In addition, more than a quarter of the portfolio was invested in variable-rate
demand notes as of the end of June 2005. Yields on these securities rise or
fall with interest rates, which helps increase the fund's yield when rates are
trending upward.
2
IXIS CASH MANAGEMENT TRUST -- MONEY MARKET SERIES
Management Discussion
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OUTLOOK FOR BALANCE OF 2005
Although experts generally agree that the Fed will continue to boost short-term
interest rates in 2005, there are different opinions about how high rates will
go. The current consensus is for another 0.25% rate increase at the Fed's next
meeting. Longer term, analysts think the Fed's actions will be determined by
their outlook for the economy. If the Fed expects stronger growth with
potentially higher inflation, they are likely to maintain an aggressive
campaign of rate hikes. Prospects for more moderate growth and inflation may
convince the Fed it has increased rates enough, prompting a pause in their
campaign.
In a statement released after their meeting at the end of June, Fed officials
said future changes in rates would be "measured" - suggesting that they are
likely to continue raising rates in increments of 0.25% at each meeting.
We will keep a watchful eye on the Fed's actions and the national economy so
that we can move quickly to take advantage of investment opportunities as they
arise.
3
UNDERSTANDING YOUR FUND'S EXPENSES
As a mutual fund shareholder, you incur different costs: transaction costs,
including sales charges (loads) on purchases, and certain exchange fees, and
ongoing costs, including management fees, sales and distribution fees (12b-1
fees), and other fund expenses. In addition, the fund assesses a minimum
balance fee of $20 on an annual basis for accounts that fall below the required
minimum to establish an account (Certain exceptions may apply). These costs are
described in more detail in the fund's prospectus. The examples below are
intended to help you understand the ongoing costs of investing in the fund and
help you compare these with the ongoing costs of investing in other mutual
funds.
The first line in the table shows the actual account values and actual fund
expenses you would have paid on a $1,000 investment in the fund from January 1,
2005 through June 30, 2005. It also shows how much a $1,000 investment would be
worth at the close of the period, assuming actual fund returns and expenses. To
estimate the expenses you paid over the period, simply divide your account
value by $1,000 (for example $8,600 account value divided by $1,000 = 8.6) and
multiply the result by the number in the Expenses Paid During the Period row as
shown below for your class.
The second line in the table provides information about hypothetical account
values and hypothetical expenses based on the fund's actual expense ratios and
an assumed rate of return of 5% per year before expenses, which is not the
fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid on your
investment for the period. You may use this information to compare the ongoing
costs of investing in the fund and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of the other funds.
Please note that the expenses shown reflect ongoing costs only, and do not
include any transaction costs. Therefore, the second line in the table is
useful in comparing ongoing costs only, and will not help you determine the
relative costs of owning different funds. If transaction costs were included,
total costs would be higher.
IXIS CASH MANAGEMENT TRUST - BEGINNING ACCOUNT VALUE ENDING ACCOUNT VALUE EXPENSES PAID DURING PERIOD*
MONEY MARKET SERIES 1/1/05 6/30/05 1/1/05 - 6/30/05
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CLASS A
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Actual $1,000 $1,009.00 $5.03
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Hypothetical (5% return before expenses) $1,000 $1,019.80 $5.06
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CLASS B
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Actual $1,000 $1,009.00 $5.03
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Hypothetical (5% return before expenses) $1,000 $1,019.80 $5.06
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CLASS C
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Actual $1,000 $1,009.00 $5.03
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Hypothetical (5% return before expenses) $1,000 $1,019.80 $5.06
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*Expenses are equal to the fund's annualized expense ratio of 1.01% for Classes
A, B and C, respectively, multiplied by the average account value over the
period, multiplied by the number of days in the most recent fiscal half year,
divided by 365 (to reflect the half-year period).
4
BOARD APPROVAL OF MANAGEMENT CONTRACTS
The Board of Trustees, including the Independent Trustees, considers matters
bearing on the Fund's advisory and sub-advisory agreements (collectively, the
"Agreements") at most of its meetings throughout the year. Once a year, usually
in the spring, the Contract Review and Governance Committee of the Board meets
to review the Agreements to determine whether to recommend that the full Board
approve the continuation of the Agreements for an additional one-year period.
After the Committee has made its recommendation, the full Board, including the
Independent Trustees, determines whether to approve the continuation of the
Agreements.
In connection with these meetings, the Trustees receive materials that the
Fund's investment advisers believe to be reasonably necessary for the Trustees
to evaluate the Agreements. These materials generally include, among other
items, (i) information on the investment performance of the Fund and the
performance of peer groups of funds, (ii) information on the Fund's advisory
and sub-advisory fees and other expenses, including information comparing the
Fund's expenses to those of peer groups of funds and information about any
applicable expense caps and fee "breakpoints," (iii) sales and redemption data
in respect of the Fund, (iv) information about the profitability of the
Agreements to the Fund's advisers and sub-advisers (collectively, the
"Advisers"), and (v) information obtained through the completion of a
questionnaire by the Advisers (the Trustees are consulted as to the information
requested through that questionnaire). The Board of Trustees, including the
Independent Trustees, may also consider other material facts such as (i) each
Adviser's financial results and financial condition, (ii) the Fund's investment
objective and strategies and the size, education and experience of the
Advisers' respective investment staffs and their use of technology, external
research and trading cost measurement tools, (iii) arrangements in respect of
the distribution of the Fund's shares, (iv) the procedures employed to
determine the value of the Fund's assets, (v) the allocation of the Fund's
securities transactions, (vi) the resources devoted to, and the record of
compliance with, the Fund's investment policies and restrictions, policies on
personal securities transactions and other compliance policies, and (vii) the
general economic outlook with particular emphasis on the mutual fund industry.
Throughout the process, the Trustees are afforded the opportunity to ask
questions of and request additional materials from the Advisers.
The Board of Trustees most recently approved the continuation of the Agreements
at their meeting held in May, 2005. In considering whether to approve the
continuation of the Agreements, the Board of Trustees, including the
Independent Trustees, did not identify any single factor as determinative.
Matters considered by the Trustees, including the Independent Trustees, in
connection with their approval of the Agreements included the following:
The nature, extent and quality of the services provided to the Fund under the
Agreements. The Trustees considered the nature, extent and quality of the
services provided by the Advisers and their affiliates to the Fund and the
resources dedicated to the Fund by the Advisers and their affiliates. The
Trustees considered not only the advisory services provided by the Advisers to
the Fund, but also the monitoring and oversight services provided by IXIS
Advisors with respect to the Fund. The Trustees also considered the benefits to
shareholders of investing in a mutual fund that is part of a family of funds
offering a variety of investment disciplines and providing for a variety of
fund and shareholder services. After reviewing these and related factors, the
Trustees concluded, within the context of their overall conclusions regarding
each of the Agreements, that the nature, extent and quality of services
provided supported the renewal of the Agreements.
Investment performance of the Fund and the Advisers. As noted above, the
Trustees received information about the performance of the Fund over various
time periods, including information which compared the performance of the Fund
to the performance of peer groups of funds. In addition, the Trustees also
reviewed data prepared by an independent third party which analyzed the
performance of the Funds using a variety of performance metrics, including
metrics which also measured the performance of the Fund on a risk adjusted
basis.
The Board concluded that the Fund's performance supported the renewal of the
Agreements relating to that Fund. Although the Fund had performance that lagged
that of a relevant peer group for certain periods, the Board concluded that
other factors relevant to performance supported renewal of the Fund's
Agreements, including that the Fund's advisory fee is proposed to be reduced
with the goal of helping the Fund's net return to shareholders become more
competitive.
The Trustees also considered each Adviser's performance and reputation
generally, the Fund's performance as a fund family generally, and the
historical responsiveness of the Advisers to Trustee concerns about performance
and the willingness of the Advisers to take steps intended to improve
performance.
After reviewing these and related factors, the Trustees concluded, within the
context of their overall conclusions regarding each of the Agreements, that the
performance of the Fund and the Advisers supported the renewal of the
Agreements.
5
BOARD APPROVAL OF MANAGEMENT CONTRACTS
The costs of the services to be provided and profits to be realized by the
Advisers and their affiliates from their respective relationships with the
Fund. The Trustees considered the fees charged to the Fund for advisory and
sub-advisory services as well as the total expense levels of the Fund. This
information included comparisons (provided both by management and also by an
independent third party) of the Fund's advisory fees and total expense levels
to those of its peer group and information about the advisory fees charged by
the Advisers to comparable accounts. In considering the fees charged to
comparable accounts, the Trustees considered, among other things, management's
representations about the differences between managing mutual funds as compared
to other types of accounts, including the additional resources required to
effectively manage mutual fund assets. In evaluating the Fund's advisory and
sub-advisory fees, the Trustees also took into account the demands, complexity
and quality of the investment management of such Fund. The Trustees noted that
the Fund's advisory fee rate was below the median of that of a group of
comparable funds, although the Fund's total expenses were higher. The Trustees
also considered management's proposal to reduce the Fund's advisory fee rate.
The Trustees also noted management's stated justification for the fees charged
to the Fund, which included information about the performance of the Fund, the
services provided to the Fund and management's view as to why it was
appropriate that the Fund bear total expenses greater than its peer group
median, and the reduction in the Fund's transfer agency fees effective at the
beginning of 2005.
The Trustees also considered the compensation directly or indirectly received
by the Advisers and their affiliates from their relationships with the Fund.
The Trustees reviewed information provided by management as to the
profitability of the Advisers' and their affiliates' relationships with the
Fund, and information about the allocation of expenses used to calculate
profitability. When reviewing profitability, the Trustees also considered
information about court cases in which adviser profitability was an issue in
whole or in part, the performance of the relevant Fund, the expense level of
the Fund, and whether the Advisers had implemented breakpoints and/or expense
caps with respect to the Fund.
After reviewing these and related factors, the Trustees concluded, within the
context of their overall conclusions regarding each of the Agreements, that the
advisory fees charged to the Fund were fair and reasonable, and that the costs
of these services generally and the related profitability of the Advisers and
their affiliates in respect of their relationships with the Fund supported the
renewal of the Agreements.
Economies of Scale. The Trustees considered the existence of any economies of
scale in the provision of services by the Advisers and whether those economies
are shared with the Fund through breakpoints in their investment advisory fees
or other means, such as expense waivers. The Trustees noted that the Fund
benefited from breakpoints in its advisory fee. In considering these issues,
the Trustees also took note of the costs of the services provided (both on an
absolute and a relative basis) and the profitability to the Advisers and their
affiliates of their relationships with the Funds, as discussed above.
After reviewing these and related factors, the Trustees considered, within the
context of their overall conclusions regarding each of the Agreements, that the
extent to which economies of scale were shared with the Fund supported the
renewal of the Agreements.
The Trustees also considered other factors, which included but were not limited
to the following:
.. whether the Fund has operated in accordance with its investment objective
and the Fund's record of compliance with its investment restrictions, and
the compliance programs of the Fund and the Advisers. They also considered
the compliance related resources the Advisers and their affiliates were
providing to the Fund.
.. the nature, quality, cost and extent of administrative and shareholder
services performed by the Advisers and their affiliates, both under the
Agreements and under separate agreements covering transfer agency and
administrative services.
.. so-called "fallout benefits" to the Advisers, such as the engagement of
affiliates of the Advisers to provide distribution and transfer agency
services to the Fund. The Trustees also considered the fact that IXIS
Advisors' parent company benefits from the retention of affiliated Advisers.
The Trustees considered the possible conflicts of interest associated with
these fallout and other benefits, and the reporting, disclosure and other
processes in place to disclose and monitor such possible conflicts of
interest.
Based on their evaluation of all factors that they deemed to be material,
including those factors described above, and assisted by the advice of
independent counsel, the Trustees, including the Independent Trustees,
concluded that the existing advisory and sub-advisory agreements should be
continued through June 30, 2006.
6
IXIS CASH MANAGEMENT TRUST -- MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
Investments as of June 30, 2005
Principal
Amount Description Value (a)
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Investments -- 100.5% of Total Net Assets
COMMERCIAL PAPER -- 55.2%
Asset-Backed -- 18.8%
$ 15,000,000 Clipper Receivables Co. LLC,
3.350%, 7/01/2005 (e) $ 15,000,000
5,000,000 Lexington Parker Capital Corp.,
3.030%, 7/07/2005 (e) 4,997,475
10,000,000 Steamboat Funding Corp.,
3.360%, 7/08/2005 (e) 9,993,467
5,000,000 Triple A One Funding Corp., (MBIA Insured),
3.060%, 7/12/2005 (e) 4,995,325
10,000,000 ASAP Funding, Ltd.,
3.240%, 8/10/2005 (e) 9,964,000
15,000,000 Lockhart Funding LLC,
3.300%, 8/10/2005 (e) 14,945,000
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59,895,267
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Banking -- 8.3%
7,000,000 Royal Bank of Scotland,
3.150%, 7/15/2005 6,991,425
5,000,000 Banco Bilbao Vizcaya Argentaria Puerto Rico,
3.100%, 7/21/2005 4,991,389
10,000,000 Danske Corp.,
3.100%, 7/27/2005 9,977,611
4,400,000 Svenska Handelsbanken, Inc.,
3.170%, 8/03/2005 4,387,214
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26,347,639
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Education -- 2.1%
6,788,000 Johns Hopkins University,
3.100%, 7/06/2005 6,788,000
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Financial -- 5.3%
7,000,000 Louis Dreyfus Corp. (LOC: Calyon),
3.060%, 7/06/2005 6,997,025
5,000,000 Louis Dreyfus Corp. (LOC: Calyon),
3.080%, 7/06/2005 4,997,861
5,000,000 Louis Dreyfus Corp. (LOC: Barclays Bank),
3.110%, 7/11/2005 4,995,680
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16,990,566
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Health Care-Services -- 3.1%
10,000,000 Dean Health Systems, Inc. (LOC: Marshall & Ilsley),
3.060%, 7/06/2005 9,995,750
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Logging -- 1.6%
5,000,000 NATC California LLC (LOC: Chase Manhattan Bank),
3.050%, 7/18/2005 4,992,799
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Special Purpose -- 9.7%
10,000,000 Galaxy Funding, Inc.,
3.090%, 7/12/2005 9,990,558
2,000,000 Galaxy Funding, Inc.,
3.100%, 7/13/2005 1,997,933
7,000,000 Charta LLC, (LOC: AMBAC Indemnity),
3.090%, 7/15/2005 (e) 6,991,588
5,000,000 Market Street Funding Corp.,
3.270%, 7/25/2005 (e) 4,989,100
7,000,000 Greyhawk Funding LLC,
3.210%, 8/23/2005 (e) 6,966,919
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30,936,098
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Principal
Amount Description Value (a)
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Trade Receivables -- 6.3%
$ 10,000,000 Windmill Funding I Corp.,
3.050%, 7/07/2005 (e) $ 9,994,917
5,000,000 Govco, Inc.,
3.070%, 7/14/2005 (e) 4,994,457
5,000,000 Windmill Funding I Corp.,
3.130%, 7/26/2005 (e) 4,989,132
---------------
19,978,506
---------------
Total Commercial Paper (Cost $175,924,625) 175,924,625
---------------
VARIABLE RATE DEMAND NOTES -- 26.8%
Auto Parts & Equipment -- 0.1%
400,000 White Hydraulics, Inc. (LOC: Amsouth Bank),
3.540%, 12/01/2005 (c) 400,000
---------------
Financial -- 8.4%
100,000 Business Stationery LLC (LOC: JP Morgan Chase),
3.540%, 8/01/2007 (c) 100,000
2,260,000 SSK Co. LLC (LOC: US Bank),
3.390%, 11/01/2021 (c) 2,260,000
199,000 YSR LLC (LOC: Amsouth Bank),
3.440%, 2/01/2023 (c) 199,000
17,450,000 MOB Management Two LLC (LOC: Columbus Bank & Trust),
3.640%, 12/01/2026 (c) 17,450,000
3,130,000 Alpine Capital Investments LLC (LOC: First of America),
3.440%, 9/15/2027 (c) 3,130,000
545,000 Tanner & Guin LLC (LOC: Amsouth Bank),
3.440%, 9/01/2029 (c) 545,000
3,130,000 MOB Management One LLC (LOC: Columbus Bank & Trust),
3.640%, 12/01/2031 (c) 3,130,000
---------------
26,814,000
---------------
Health Care-Services -- 2.7%
8,600,000 American Health Centers, Inc. (LOC: Amsouth Bank),
3.440%, 3/01/2019 (c) 8,600,000
---------------
Manufacturing -- 0.1%
100,000 Harris Metals LLC (LOC: Amsouth Bank),
3.540%, 6/01/2010 (c) 100,000
---------------
Municipal -- 11.4%
6,310,000 New York City Industrial Development Agency, (Airis JFK I LLC)
(LOC: Bayerishe Landesbank),
3.320%, 7/01/2008 (c) 6,310,000
1,295,000 Birmingham, AL, Special Care Facilities Financing Authority, (Eye
Foundation, Inc. (The) (LOC: Columbus Bank & Trust),
3.540%, 9/01/2018 (c) 1,295,000
19,000,000 New Jersey Economic Development Authority, (Marina Energy LLC)
(LOC: First Union),
3.320%, 9/01/2021 (c) 19,000,000
5,000,000 Connecticut State Housing Finance Authority (LOC: AMBAC
Indemnity),
3.340%, 5/15/2033 (c) 5,000,000
4,544,838 Los Angeles, CA, Community Redevelopment Agency, (Security
Building) (LOC: FNMA),
3.420%, 12/15/2034 (c) 4,544,838
---------------
36,149,838
---------------
Real Estate -- 4.1%
240,000 Sheffield Realty LLC (LOC: Amsouth Bank),
3.440%, 4/01/2012 (c) 240,000
1,020,000 Shayeson-Huff Properties LLC (LOC: Firstar Bank),
3.440%, 11/01/2016 (c) 1,020,000
See accompanying notes to financial statements.
7
IXIS CASH MANAGEMENT TRUST -- MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS (continued)
Investments as of June 30, 2005
Principal
Amount Description Value (a)
- ----------------------------------------------------------------------------------------------------
Real Estate -- continued
$ 1,900,000 Jobs Co. LLC (The) (LOC: First Commercial),
3.440%, 2/01/2022 (c) $ 1,900,000
641,000 Pine Tree Country Club (LOC: Amsouth Bank),
3.440%, 8/01/2023 (c) 641,000
6,630,000 Storage World LLC (LOC: Regions Bank),
3.330%, 12/01/2024 (c) 6,630,000
2,700,000 J&M LLC, (LOC: First Commercial),
3.540%, 10/01/2026 (c) 2,700,000
---------------
13,131,000
---------------
Total Variable Rate Demand Notes (Cost $85,194,838) 85,194,838
---------------
MEDIUM TERM NOTES -- 9.1%
Banking -- 2.8%
5,000,000 Bank of America Corp.,
3.065%, 12/15/2005 (d) 5,000,000
4,000,000 Bank of America Corp.,
3.310%, 6/07/2006 (d) 4,000,000
---------------
9,000,000
---------------
Financial -- 6.3%
15,000,000 Caterpillar Financial Services Corp., Series F, 144A,
3.250%, 7/11/2005 (d) 15,000,000
5,000,000 General Electric Capital Corp., 144A,
3.340%, 7/15/2006 (d) 5,000,000
---------------
20,000,000
---------------
Total Medium Term Notes (Cost $29,000,000) 29,000,000
---------------
CERTIFICATES OF DEPOSIT -- 4.7%
10,000,000 Barclays Bank PLC,
3.110%, 7/11/2005 10,000,167
5,000,000 Svenska Handelsbanken, Inc.,
3.145%, 7/27/2005 5,000,042
---------------
Total Certificates of Deposit (Cost $15,000,209) 15,000,209
---------------
TIME DEPOSIT -- 4.1%
13,100,000 Banque National de Paris, 3.375%, 7/01/2005 13,100,000
---------------
Total Time Deposit (Cost $13,100,000) 13,100,000
---------------
MUNICIPAL OBLIGATION -- 0.6%
2,000,000 Glendale, WI, 2.500%, 9/21/2005 2,000,000
---------------
Total Municipal Obligation (Cost $2,000,000) 2,000,000
---------------
SHORT TERM INVESTMENT -- 0.0%
47,253 Repurchase Agreement with Investors Bank & Trust Co. dated
6/30/2005 at 2.01% to be repurchased at $47,256 on
7/01/2005, collateralized by $46,857 Small Business
Administration Pool #505781, 6.375%,
due 5/25/2015, valued at $49,616 47,253
---------------
Total Short Term Investment (Cost $47,253) 47,253
---------------
Total Investments -- 100.5%
(Identified Cost $320,266,925) (b) 320,266,925
Other assets less liabilities -- (0.5%) (1,569,986)
---------------
Total Net Assets -- 100.0% $ 318,696,939
===============
(a) See Note 2a of Notes to Financial Statements.
(b) The aggregate cost for federal income tax purposes was $320,266,925.
(c) Variable rate demand 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
may be secured by letters of credit or other credit support agreements from major
banks. Maturity dates shown represent the ultimate maturity of the note.
(d) Floating rate note. Rate shown is as of June 30, 2005.
(e) Security exempt from registration under Section 4(2) of the Securities Act of 1933.
These securities may only be resold in exempt transactions to qualified buyers. Private
resales of these securities to qualified institutional buyers are also exempt from
registration pursuant to Rule 144A under the Securities Act of 1933. At June 30, 2005,
these securities amounted to $98,821,380 which represents 31.0% of net assets.
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 year-end, the value of these securities amounted to
$20,000,000 or 6.3% of net assets.
Holdings at June 30, 2005 as a Percentage of Net Assets (unaudited)
Financial 20.0%
Asset-Backed 18.8
Municipal 12.0
Banking 11.1
Special Purpose 9.7
Trade Receivables 6.3
Health Care-Services 5.8
Certificate of Deposit 4.7
Real Estate 4.1
Time Deposit 4.1
Education 2.1
Other, less than 2% each 1.8
See accompanying notes to financial statements.
8
STATEMENT OF ASSETS & LIABILITIES
June 30, 2005
ASSETS
Investments, at amortized cost $ 320,266,925
Receivable for:
Shares sold 349,484
Interest 461,539
---------------------
TOTAL ASSETS 321,077,948
---------------------
LIABILITIES
Payable for:
Shares redeemed 1,797,063
Dividends payable 8,853
Accrued expenses:
Management fees 108,039
Deferred Trustees' fees 219,859
Transfer agent fees 134,441
Administrative fees 17,565
Other expenses 95,189
---------------------
TOTAL LIABILITIES 2,381,009
---------------------
NET ASSETS $ 318,696,939
=====================
NET ASSETS CONSIST OF:
Paid in capital $ 318,671,022
Undistributed net investment income 26,456
Accumulated net realized loss on
investments (539)
---------------------
NET ASSETS $ 318,696,939
=====================
COMPUTATION OF NET ASSET VALUE AND
OFFERING PRICE:
Class A shares:
Net assets $ 294,439,506
=====================
Shares of beneficial interest 294,412,394
=====================
Net asset value and offering price
per share (redemption price per
share is equal to net asset value
less any applicable contingent
deferred sales charge) (See Note 1) $ 1.00
=====================
Class B shares:
Net assets $ 22,475,075
=====================
Shares of beneficial interest 22,476,769
=====================
Net asset value and offering price
per share (redemption price per
share is equal to net asset value
less any applicable contingent
deferred sales charge) (See Note 1) $ 1.00
=====================
Class C shares:
Net assets $ 1,782,358
=====================
Shares of beneficial interest 1,782,074
=====================
Net asset value and offering price
per share (redemption price per
share is equal to net asset value
less any applicable contingent
deferred sales charge) (See Note 1) $ 1.00
=====================
See accompanying notes to financial statements.
9
STATEMENT OF OPERATIONS
For the Year Ended June 30, 2005
NET INVESTMENT INCOME
Interest $ 7,664,970
---------------------
Expenses
Management fees 1,354,344
Trustees' fees and expenses 54,575
Administrative fees 215,153
Custodian fees 67,873
Transfer agent fees 1,486,909
Audit and tax services 22,531
Legal fees 19,224
Shareholder reporting 142,002
Registration fees 79,524
Miscellaneous 22,569
---------------------
Total expenses 3,464,704
---------------------
Net investment income 4,200,266
---------------------
REALIZED GAIN (LOSS) ON INVESTMENTS
Realized loss on investments - net (539)
---------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 4,199,727
=====================
See accompanying notes to financial statements.
10
STATEMENT OF CHANGES IN NET ASSETS
Year Ended
June 30,
2005
---------------------
---------------------
FROM OPERATIONS:
Net investment income $ 4,200,266
Net realized gain (loss) on investments (539)
---------------------
Net increase in net assets resulting from operations 4,199,727
---------------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A (3,873,357)
Class B (302,384)
Class C (24,525)
---------------------
(4,200,266)
---------------------
FROM CAPITAL SHARE TRANSACTIONS (Note 5):
Proceeds from sale of shares 389,335,210
Net asset value of shares issued in connection with the reinvestment of distributions 4,113,424
Cost of shares redeemed (443,297,248)
---------------------
DECREASE IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (49,848,614)
---------------------
Total decrease in net assets (49,849,153)
---------------------
NET ASSETS
Beginning of year 368,546,092
---------------------
End of year $ 318,696,939
=====================
UNDISTRIBUTED NET INVESTMENT INCOME $ 26,456
=====================
Year Ended
June 30,
2004
---------------------
---------------------
FROM OPERATIONS:
Net investment income $ 870,652
Net realized gain (loss) on investments 806
---------------------
Net increase in net assets resulting from operations 871,458
---------------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A (839,709)
Class B (66,133)
Class C (6,107)
---------------------
(911,949)
---------------------
FROM CAPITAL SHARE TRANSACTIONS (Note 5):
Proceeds from sale of shares 492,470,482
Net asset value of shares issued in connection with the reinvestment of distributions 891,507
Cost of shares redeemed (583,732,664)
---------------------
DECREASE IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (90,370,675)
---------------------
Total decrease in net assets (90,411,166)
---------------------
NET ASSETS
Beginning of year 458,957,258
---------------------
End of year $ 368,546,092
=====================
UNDISTRIBUTED NET INVESTMENT INCOME $ 26,456
=====================
See accompanying notes to financial statements.
11
This Page Intentionally Left Blank
12
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year.
Income from investment operations: Less distributions:
---------------------------------- -----------------------------
Net asset
value, Dividends
beginning Net Total from from
of investment investment net investment Total
year income operations income distributions
---------- ---------- ---------- -------------- -------------
Class A, B, C
6/30/2005 $ 1.00 $ 0.0126 $ 0.0126 $ (0.0126) $ (0.0126)
6/30/2004 1.00 0.0022 0.0022 (0.0022) (0.0022)
6/30/2003 1.00 0.0076 0.0076 (0.0076) (0.0076)
6/30/2002 1.00 0.0175 0.0175 (0.0175)(a) (0.0175)
6/30/2001 1.00 0.0524 0.0524 (0.0524)(a) (0.0524)
The subadviser to the Fund 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 Fund.
(a) Includingnet realized gain (loss) on investments of less than $.0001 per
share.
See accompanying notes to financial statements.
13
Ratios to average net assets:
-----------------------------
Net asset Net assets,
value, Total end of Net investment
end of return year Expenses income
year (%) (000's) (%) (%)
---------- --------- ----------- --------- --------------
$ 1.00 1.3 $ 318,697 1.02 1.24
1.00 0.2 368,546 0.94 0.21
1.00 0.8 458,957 0.88 0.77
1.00 1.8 532,048 0.91 1.75
1.00 5.4 545,151 0.84 5.27
14
NOTES TO FINANCIAL STATEMENTS
June 30, 2005
1. Organization. IXIS Cash Management Trust - Money Market Series (the "Fund"),
formerly CDC Nvest Cash Management Trust - Money Market Series, is the only
series of IXIS Advisor Cash Management Trust (the "Trust"), a Massachusetts
business trust 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, without par value.
The Fund seeks maximum current income consistent with preservation of capital
and liquidity. The Fund offers Class A, Class B and Class C shares. The classes
of the Fund enable shareholders in the same classes of another IXIS Advisor
Fund to invest in the Fund through an exchange of shares. The classes of the
Fund are identical except for different exchange privileges.
Shares of the Fund are sold without a front end sales charge. Shares acquired
by exchange of shares from another IXIS Advisor Fund may be subject to a
contingent deferred sales charge if, and to the extent as, the shares exchanged
were subject to a contingent deferred sales charge.
2. Significant Accounting Policies. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of its
financial statements. The 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 that affect the
reported amounts and disclosures in the financial statements. Actual results
could differ from those estimates.
a. Security Valuation. The Fund 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. By using amortized cost valuation, the Fund
seeks to maintain a constant net asset value of $1.00 per share despite minor
shifts in the market value of its portfolio securities.
b. Repurchase Agreements. The Fund, through its custodian, receives delivery of
the underlying securities collateralizing repurchase agreements. It is the
Fund'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 Fund'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 Fund 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.
e. Dividends and Distributions to Shareholders. Dividends and distributions are
declared daily to shareholders of record at the time and are paid monthly. Net
capital gain distributions, if any, will be made annually. The timing and
characterization of certain income and capital gain distributions are
determined in accordance with federal tax regulations, which may differ from
accounting principles generally accepted in the United States of America.
Distributions from net investment income and short-term capital gains are
treated as ordinary income for tax purposes.
At June 30, 2005, the Fund had undistributed ordinary income on a tax basis of
$243,063 and for federal income tax purposes, a capital loss carryforward of
$539, which may be available to offset future realized gains, if any, to the
extent provided by regulations and thus will reduce the amount of distributions
to shareholders which would otherwise be necessary to relieve the Fund of any
liability for federal income tax. Such capital loss carryforward will expire on
June 30, 2013. The difference between the components of distributable earnings
on a tax basis and amounts reported on the Statement of Assets and Liabilities
are primarily attributable to deferred Trustee fees.
f. Other. The Fund invests primarily in a portfolio of money market instruments
maturing in 397 days or less and whose ratings are generally within the two
highest rating categories of a nationally recognized rating agency. The ability
of the issuers of the securities held by the 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.
g. Indemnifications. Under the Fund's organizational documents, its officers
and trustees are indemnified against certain liability arising out of the
performance of their duties to the Fund. Additionally, in the normal course of
business, the Fund enters into contracts with service providers that contain
general indemnification clauses. The Fund's maximum exposure under these
arrangements is unknown as this would involve future claims that may be made
against the Fund that have not yet occurred. However, based on experience, the
Fund expects the risk of loss to be remote.
3. Investment Transactions. For the year ended June 30, 2005, purchases and
proceeds from sales or maturities of short-term obligations (including
securities purchased subject to repurchase agreements) were $9,190,422,758 and
$9,244,296,243, respectively.
15
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2005
4. Management Fees and Other Transactions with Affiliates.
a. Management Fees. IXIS Asset Management Advisors, L.P. ("IXIS Advisors"),
formerly CDC IXIS Asset Management Advisers, L.P., is the investment adviser to
the Fund. Under the terms of the management agreement, the Fund paid a
management fee at the following annual rates, calculated daily and payable
monthly, based on the Fund'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%
For the year ended June 30, 2005, management fees for the Fund were $1,354,344
(0.40% of average daily net assets).
Effective July 1, 2005, the management fee was reduced to an annual rate of
0.35% of the first $250 million of the Fund's average daily net assets, 0.33%
of the next $250 million, 0.31% of the next $500 million, 0.26% of the next
$500 million, 0.25% of the next $500 million and 0.20% of such assets in excess
of $2 billion.
IXIS Advisors has entered into a subadvisory agreement on behalf of the Fund
with Reich & Tang Asset Management, LLC ("Reich & Tang"). Payments to IXIS
Advisors are reduced in the amount of payments to the subadviser. IXIS Advisors
and Reich & Tang are wholly owned subsidiaries of IXIS Asset Management North
America, L.P. ("IXIS North America"), formerly CDC IXIS Asset Management North
America, L.P. Certain officers and directors of IXIS Advisors are also officers
or Trustees of the Fund.
b. Administrative Expense. Prior to January 3, 2005, IXIS Asset Management
Services Company ("IXIS Services"), formerly CDC IXIS Asset Management
Services, Inc., a wholly-owned subsidiary of IXIS North America, performed
administrative services for the Fund and subcontracted with Investors Bank &
Trust Company ("IBT") to serve as subadministrator. Pursuant to the agreement
between the Trust, IXIS Advisor Funds Trust I (formerly CDC Nvest Funds Trust
I), IXIS Advisor Funds Trust II (formerly CDC Nvest Funds Trust II), IXIS
Advisor Funds Trust III (formerly CDC Nvest Funds Trust III), IXIS Advisor
Funds Trust IV (formerly CDC Nvest Companies Trust I) ("IXIS Advisor Funds
Trusts"), Loomis Sayles Funds I, and Loomis Sayles Funds II ("Loomis Sayles
Funds Trusts") (collectively, the "Trusts") and IXIS Services, the Fund paid
IXIS Services monthly its pro rata portion of fees equal to an annual rate of
0.0675% of the first $5 billion of the Trusts' average daily net assets,
0.0625% of the next $5 billion, and 0.0500% of such assets in excess of $10
billion, subject to an annual aggregate minimum fee for the Trusts of $5
million.
Effective January 3, 2005, IXIS Advisors assumed responsibility for providing
administrative services to the Trust pursuant to the same fee structure and IBT
continuing to serve as subadministrator.
For the year ended June 30, 2005, the Fund paid $215,153 to IXIS Services and
IXIS Advisors for administrative services.
c. Transfer Agent Fees. IXIS Services is the transfer and shareholder servicing
agent for the Fund and has subcontracted with Boston Financial Data Services
("BFDS") to serve as sub-transfer agent. The Fund pays IXIS Services fees for
servicing shareholder accounts. During the period July 1, 2004 through December
31, 2004, the Fund for its Class A, B and C shares paid fees monthly equal at
an annual rate of 0.239% of the first $650 million of the Trust's average daily
net assets, 0.200% of the next $5 billion, and 0.195% of such assets in excess
of $5.65 billion, subject to a monthly minimum of $1,500 per class and an
annual aggregate minimum fee of approximately $1.4 million.
Effective January 1, 2005, the Fund, for its Class A, B and C shares, pays fees
monthly to IXIS Services equal to $27.55 for each open account and $2.00 for
each closed account, subject to a monthly minimum of $1,500 per class and an
annual aggregate minimum fee of approximately $1 million.
For the year ended June 30, 2005, the Fund paid $1,202,394 to IXIS Services as
compensation for its services as transfer agent. Additionally, the Fund
reimbursed IXIS Services, BFDS and other firms for out-of-pocket expenses.
In addition, pursuant to other servicing agreements, the Fund pays service fees
to other firms that provide similar services for their own shareholder accounts.
d. Distribution Agreement. IXIS Asset Management Distributors L.P. ("IXIS
Distributors"), formerly CDC IXIS Asset Management Distributors L.P., a
wholly-owned subsidiary of IXIS North America, is the Fund's distributor
pursuant to a distribution agreement, although it receives no compensation from
the Fund for such services.
e. Trustees Fees and Expenses. The Fund does not pay any compensation directly
to its officers or Trustees who are directors, officers or employees of IXIS
Advisors, IXIS Distributors, IXIS North America, IXIS Services or their
affiliates. Each Trustee who is an independent Trustee of the IXIS Advisor
Funds Trusts and the Loomis Sayles Funds Trusts receives 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 attended. Each committee chairman receives an
additional retainer fee at the annual rate of $7,000. Each committee member
receives a meeting attendance fee of $3,750 per committee meeting attended. The
Co-Chairmen of the Board each receive an additional retainer fee of $25,000.
These fees are allocated to the various series of the IXIS Advisor Funds Trusts
and the Loomis Sayles Funds 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.
16
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2005
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 a
designated fund or certain other funds of the IXIS Advisor Funds Trusts and the
Loomis Sayles Funds Trusts on the normal payment date. Deferred amounts remain
in the funds until distributed in accordance with the Plan.
Additionally, the Board of Trustees has approved the use of Fund assets to pay
its portion of the annual salary for 2005 of an employee of IXIS Advisors who
supports the Fund's Chief Compliance Officer. For the year ended June 30, 2005,
the Fund's portion of such expense was $354.
f. Publishing Services. IXIS Services performs certain desktop publishing
services for the Fund. Fees for these services are presented in the Statement
of Operations as shareholder reporting. For the year ended June 30, 2005, the
Fund paid $3,084 to IXIS Services as compensation for these services.
5. Capital Shares. The Fund may issue an unlimited number of shares of
beneficial interest, without par value. Transactions in capital shares at a
constant net asset value of $1.00 per share were as follows:
Year Ended Year Ended
June 30, 2005 June 30, 2004
------------- -------------
Class A
Shares sold 378,427,656 475,307,285
Shares issued in connection with the reinvestment of distributions 3,803,151 824,472
------------- -------------
382,230,807 476,131,757
Shares repurchased (426,007,151) (556,692,238)
------------- -------------
Net decrease (43,776,344) (80,560,481)
------------- -------------
Class B
Shares sold 9,934,024 15,260,556
Shares issued in connection with the reinvestment of distributions 287,076 61,336
------------- -------------
10,221,100 15,321,892
Shares repurchased (15,549,063) (23,728,800)
------------- -------------
Net decrease (5,327,963) (8,406,908)
------------- -------------
Class C
Shares sold 973,530 1,902,641
Shares issued in connection with the reinvestment of distributions 23,197 5,699
------------- -------------
996,727 1,908,340
Shares repurchased (1,741,034) (3,311,626)
------------- -------------
Net decrease (744,307) (1,403,286)
------------- -------------
Decrease derived from capital shares transactions (49,848,614) (90,370,675)
============= =============
On June 30, 2005, one shareholder owned 9.83% of the Fund's total shares
outstanding.
17
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Trustees and Shareholders of
IXIS Cash Management Trust - Money Market Series:
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of IXIS Cash Management Trust - Money
Market Series (formerly CDC Nvest Cash Management Trust - Money Market Series)
(the "Fund"), a series constituting IXIS Advisor Cash Management Trust at June
30, 2005, and the results of its operations, the changes in its net assets and
the financial highlights for each of 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 Fund'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, 2005 by
correspondence with the custodian, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
August 12, 2005
18
ADDITIONAL INFORMATION
Shareholder Meeting (unaudited)
At a special shareholders' meeting held on June 2, 2005, shareholders of the
IXIS Advisor Cash Management Trust voted for the following proposals:
1. Election of Trustees for the IXIS Advisor Cash Management Trust
(the "Trust")
Votes
Votes For Withheld Total Votes
- --------- -------- -----------
Graham T. Allison, Jr. 187,589,034.867 5,640,952.672 193,229,987.539
Edward A. Benjamin 187,622,773.259 5,607,214.280 193,229,987.539
Daniel M. Cain 187,634,538.581 5,595,448.958 193,229,987.539
Paul G. Chenault 187,524,104.829 5,705,882.710 193,229,987.539
Kenneth J. Cowan 187,564,208.343 5,665,779.196 193,229,987.539
Richard Darman 187,598,386.466 5,631,601.073 193,229,987.539
Sandra O. Moose 187,633,930.530 5,596,057.009 193,229,987.539
John A. Shane 187,568,810.374 5,661,177.165 193,229,987.539
Charles D. Baker 187,593,399.163 5,636,588.376 193,229,987.539
Cynthia L. Walker 187,550,658.357 5,679,329.182 193,229,987.539
Robert J. Blanding 187,467,029.045 5,762,958.494 193,229,987.539
John T. Hailer 187,608,871.086 5,621,116.453 193,229,987.539
2. Approval of an Amended and Restated Agreement and Declaration
of Trust for the Trust.
Voted Abstained Broker
Voted For Against Votes Non-Votes Total Votes
--------- ------- ----- --------- -----------
179,872,950.865 3,906,611.355 5,277,399.319 4,173,026.000 193,229,987.539
19
TRUSTEE AND OFFICER INFORMATION
The table below provides certain information regarding the Trustees and
Officers of IXIS Advisor Cash Management Trust (the "Trust"). Unless otherwise
indicated, the address of all persons below is 399 Boylston Street, Boston, MA
02116. The statement of additional information includes additional information
about the Trustees of the Trust and is available by calling IXIS Advisor Funds
at 800-225-5478.
Position(s) Held with the Number of Portfolios in
Name and Trust, Length of Time Principal Occupation(s) Fund Complex Overseen*** and
Date of Birth Served and Term of Office* During Past 5 Years** Other Directorships Held
------------- -------------------------- --------------------- ------------------------
INDEPENDENT TRUSTEES
Graham T. Allison Trustee, since 1984 Douglas Dillon Professor and 37;
(3/23/40) Contract Review and Director of the Belfer Center Director, Taubman Centers, Inc.
Governance Committee of Science and International (real estate investment trust);
Member Affairs, John F. Kennedy Advisory Board Member, USEC
School of Government, Inc. (energy supplier)
Harvard University
Charles D. Baker Trustee, since 2005 President and Chief Executive 37;
(11/13/56) Contract Review and Officer, Harvard Pilgrim None
93 Worcester Street Governance Committee Health Care (health plan)
Wellesley, MA 02481 Member
Edward A. Benjamin Trustee, since 2003 Retired 37;
(5/30/38) Audit Committee Member Director, Coal, Energy
Investments & Management,
LLC; Director, Precision Optics
Corporation (optics
manufacturer)
Daniel M. Cain Trustee, since 2000; Co- President and Chief Executive 37;
(2/24/45) Chairman of the Board, Officer, Cain Brothers & Trustee, Universal Health Realty
since 2004 Company, Incorporated Income Trust; Director,
Chairman of the Audit (investment banking) Sheridan Healthcorp (physician
Committee practice management)
Paul G. Chenault Trustee, since 2003 Retired; Trustee, First Variable 37;
(9/12/33) Contract Review and Life (variable life insurance) Director, Mailco Office
Governance Committee Products, Inc. (mailing
Member equipment)
Kenneth J. Cowan Trustee, since 1993; Co- Retired 37;
(4/5/32) Chairman of the Board, None
since 2004
Chairman of the Contract
Review and Governance
Committee
Richard Darman Trustee, since 1996 Partner, The Carlyle Group 37;
(5/10/43) Contract Review and (investments); formerly, Director and Chairman of the
Governance Committee Professor, John F. Kennedy Board of Directors, AES
Member School of Government, Corporation (independent
Harvard University power company)
20
TRUSTEE AND OFFICER INFORMATION
Position(s) Held with the Number of Portfolios in
Name and Trust, Length of Time Principal Occupation(s) Fund Complex Overseen*** and
Date of Birth Served and Term of Office* During Past 5 Years** Other Directorships Held
------------- -------------------------- --------------------- ------------------------
INDEPENDENT TRUSTEES
continued
Sandra O. Moose Trustee, since 1993 President, Strategic Advisory 37;
(2/17/42) Audit Committee Member Services (management Director, Verizon
consulting); formerly, Senior Communications; Director,
Vice President and Director, Rohm and Haas Company
The Boston Consulting Group, (specialty chemicals); Director,
Inc. (management consulting) AES Corporation
John A. Shane Trustee, since 1993 President, Palmer Service 37;
(2/22/33) Contract Review and Corporation (venture capital Director, Gensym Corporation
Governance Committee organization) (software and technology
Member services provider); Director, Abt
Associates Inc. (research and
consulting firm)
Cynthia L. Walker Trustee, since 2005 Dean for Finance and CFO 37;
(7/25/56) Audit Committee Member (formerly, Associate Dean for None
Finance & CFO), Harvard
Medical School
INTERESTED TRUSTEES
Robert J. Blanding/1/ Trustee, since 2003 President, Chairman, Director 37;
(4/17/47) and Chief Executive Officer, None
555 California Street Loomis, Sayles & Company,
San Francisco, CA 94104 L.P.; President and Chief
Executive Officer -- Loomis
Sayles Funds I; Chief Executive
Officer -- Loomis Sayles
Funds II
John T. Hailer/2/ Trustee, since 2000 President and Chief Executive 37;
(11/23/60) President and Chief Officer, IXIS Asset None
Executive Officer Management Distributors,
L.P.; Executive Vice President
-- Loomis Sayles Funds I;
President -- Loomis Sayles
Funds II
OFFICERS
Coleen Downs Dinneen Secretary, Clerk and Chief Senior Vice President, General Not Applicable
(12/16/60) Legal Officer, since 2004 Counsel, Secretary and Clerk
(formerly, Deputy General
Counsel, Assistant Secretary
and Assistant Clerk), IXIS
Asset Management
Distribution Corporation, IXIS
Asset Management
Distributors, L.P., IXIS Asset
Management Advisors, L.P.
and IXIS Asset Management
Services Company
21
TRUSTEE AND OFFICER INFORMATION
Position(s) Held with the Number of Portfolios in
Name and Trust, Length of Time Principal Occupation(s) Fund Complex Overseen*** and
Date of Birth Served and Term of Office* During Past 5 Years** Other Directorships Held
------------- -------------------------- --------------------- ------------------------
OFFICERS
continued
Michael C. Kardok Treasurer, Principal Senior Vice President, IXIS Not Applicable
(7/17/59) Financial and Accounting Asset Management Advisors,
Officer, since 2004 L.P. and IXIS Asset
Management Distributors,
L.P.; formerly, Senior Vice
President, IXIS Asset
Management Services
Company; formerly, Senior
Director, PFPC Inc; formerly,
Vice President -- Division
Manager, First Data Investor
Services, Inc.
Max J. Mahoney Anti-Money Laundering Senior Vice President, Deputy Not Applicable
(5/1/62) Officer and Assistant General Counsel, Assistant
Secretary, since 2005 Secretary and Assistant Clerk,
IXIS Asset Management
Distribution Corporation, IXIS
Asset Management
Distributors, L.P., IXIS Asset
Management Advisors, L.P.
and IXIS Asset Management
Services Company; Chief
Compliance Officer, IXIS
Asset Management Advisors,
L.P.
John E. Pelletier Chief Operating Officer, Executive Vice President and Not Applicable
(6/24/64) since 2004 Chief Operating Officer
(formerly, General Counsel,
Secretary and Clerk), IXIS
Asset Management
Distributors, L.P. and IXIS
Asset Management Advisors,
L.P.; Executive Vice President
(formerly, Senior Vice
President, General Counsel,
Secretary and Clerk), IXIS
Asset Management
Distribution Corporation;
Director (formerly, President,
Chief Executive Officer,
General Counsel, Secretary
and Clerk), IXIS Asset
Management Services
Company
22
TRUSTEE AND OFFICER INFORMATION
Position(s) Held with the Number of Portfolios in
Name and Trust, Length of Time Principal Occupation(s) Fund Complex Overseen*** and
Date of Birth Served and Term of Office* During Past 5 Years** Other Directorships Held
------------- -------------------------- --------------------- ------------------------
OFFICERS
continued
Kristin Vigneaux Chief Compliance Officer, Chief Compliance Officer for Not Applicable
(9/25/69) since 2004 Mutual Funds, IXIS Asset
Management Distributors,
L.P., IXIS Asset Management
Advisors, L.P. and IXIS Asset
Management Services
Company; formerly, Vice
President, IXIS Asset
Management Services
Company
* The year provided is the earliest year during which a Trustee was elected or
appointed to the Trust. All Trustees serve until retirement, resignation or
removal from the Board. The current retirement age is 72. At a meeting held
on November 19, 2004, the Trustees voted to suspend the retirement policy
until 2006.
** Each person listed above, except as noted, holds the same position(s) with
the IXIS Advisor and Loomis Sayles Trusts. Previous positions during the
past five years with IXIS Asset Management Distributors, L.P. (the
"Distributor"), IXIS Asset Management Advisors, L.P. or Loomis, Sayles &
Company, L.P. are omitted if not materially different from a Trustee's or
officer's current position with such entity.
***The Trustees of the Trust serve as Trustees of a fund complex that includes
all series of IXIS Advisor Funds Trust I, IXIS Advisor Funds Trust II, IXIS
Advisor Funds Trust III, IXIS Advisor Funds Trust IV, IXIS Advisor Cash
Management Trust, AEW Real Estate Income Fund, Loomis Sayles Funds I and
Loomis Sayles Funds II.
/1/ Mr. Blanding is deemed an "interested person" of the Trust because he
holds the following positions with affiliated persons of the Trust:
President, Chairman, Director and Chief Executive Officer of Loomis,
Sayles & Company, L.P.
/2/ Mr. Hailer is deemed an "interested person" of the Trust because he holds
the following positions with affiliated persons of the Trust: Director and
Executive Vice President of IXIS Asset Management Distribution
Corporation, President and Chief Executive Officer of IXIS Asset
Management Advisors, L.P.
23
Item 2. Code of Ethics.
The Registrant has adopted a code of ethics that applies to the Registrant's
principal executive officer, principal financial officer and persons performing
similar functions.
Item 3. Audit Committee Financial Expert.
The Board of Trustees of the Registrant has established an audit committee.
Mses. Sandra O. Moose and Cynthia L. Walker, and Mr. 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 Registrant.
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 Registrant'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 fees Audit-related fees Tax fees/1/ All other fees
------------------------------------------------------------------------------------
2004 2005 2004 2005 2004 2005 2004 2005
------------------------------------------------------------------------------------
Cash Management Trust $22,300 $22,300 N/A N/A 1,900 1,250 N/A N/A
1. The tax fees consist of a review of the Trust's tax returns (2004) and
year-end shareholder reporting (2005).
Audit Committee Pre Approval Policies.
Annually, the Registrant'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 Registrant 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 Registrant'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.
100% of the audit-related, tax and other services provided by the
Registrant's principal accountant were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Fees paid to Principal Accountant By Adviser and Control Affiliates.
The aggregate non-audit fees provided by the Registrant's principal
accountant to the Registrant, IXIS Asset Management Advisors, L.P. and entities
controlling, controlled by or under common control with IXIS Asset Management
Advisors, L.P. that provide ongoing services to the Registrant ("Control
Affiliates") during 2005 and 2004 were $127,900 and $122,239, respectively.
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. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Companies and Affiliated Purchasers.
Not applicable.
Item 10. 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 11. Controls and Procedures.
The registrant's principal executive officer and principal financial officer
have concluded that the registrant's disclosure controls and procedures are
sufficient to ensure that information required to be disclosed by the registrant
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 changes in the registrant's internal control over financial
reporting that occurred during the registrant's last fiscal quarter of the
period covered by the report that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
Item 12. Exhibits.
(a) (1) Code of Ethics required by Item 2 hereof, filed herewith as
exhibit (a)(1)
(b) (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.
(a) 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.
IXIS Advisor Cash Management Trust
By: /s/ John T. Hailer
-------------------------------------------
Name: John T. Hailer
Title: President & Chief Executive Officer
Date: August 26, 2005
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 26, 2005
By: /s/ Michael C. Kardok
-------------------------------------------
Name: Michael C. Kardok
Title: Treasurer
Date: August 26, 2005