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: December 31, 2005
Item 1. Reports to Stockholders.
The Registrant's semiannual report transmitted to shareholders pursuant to Rule
30e-1 under the Investment Company Act of 1940 is as follows:
[LOGO]
IXIS ADVISOR FUNDS
Semiannual Report
December 31, 2005
IXIS Cash Management Trust -- Money Market Series
Reich & Tang Asset Management
TABLE OF CONTENTS
Management Discussion Page 1
and Performance.........
Portfolio of Investments Page 5
Financial Statements.... Page 7
IXIS CASH MANAGEMENT TRUST -- MONEY MARKET SERIES
PORTFOLIO PROFILE
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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Inception Date:
July 10, 1978
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Symbols:
Class A NEMXX
Class B NMBXX
Class C NVCXX
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Manager:
Molly J. Flewharty,
Reich & Tang Asset Management
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What You Should Know:
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.
Management Discussion
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During the closing months of 2005, the interest rate climate was relatively
unchanged from earlier in the year - short-term rates trended slowly higher,
but remained at historically low levels. During the period, the Federal Reserve
Board (the Fed) continued its series of gradual increases in interest rates,
which raised yields on money market investments.
For the six months ended December 31, 2005, IXIS Cash Management Trust -- Money
Market Series maintained a constant price of $1.00 per share and provided a
total return of 1.47% based on the net asset value of Class A shares and
$0.0146 per share in reinvested dividends. The fund's seven-day yield as of the
end of December was 3.44%.
SHORT-TERM INTEREST RATES RISE AT MEASURED PACE
Hurricane Katrina - one of the worst natural disasters in U.S. history -
contributed to record high prices for gasoline, natural gas and oil, and to
fears of a corresponding leap in inflation. The Fed responded to this and to
other inflationary pressures during the period by continuing a program of
raising short-term interest rates.
Just prior to the start of the fund's fiscal year on July 1, 2005, the Fed
announced a 0.25% increase in the Federal funds rate (the rate that banks
charge each other for overnight loans), bringing the rate up to 3.25%.
The Fed continued to raise rates in 0.25% increments at each of its four
subsequent meetings in 2005: in August, September, November and December. The
December interest rate move was the thirteenth consecutive quarter-point hike
in rates since June 2004. By year-end, the Federal funds rate stood at 4.25%,
its highest level in about four and a half years.
ANTICIPATING MORE RATE HIKES TO COME, FUND REMAINS FLEXIBLE
Our strategy throughout the period has been the same approach we outlined in
recent reports. We worked to generate as much income as possible. Although
money market rates remained low, they continued to rise, allowing the fund's
income level to rise gradually.
We maintained a relatively short average maturity throughout the period.
Although longer-term securities generally offer higher yields than shorter-term
issues, we felt it wasn't worth the risk of locking in current rates when we
believed even higher rates might be ahead. As a result, we kept the fund's
average maturity under 30 days, freeing up assets to invest in higher-yielding
securities as they became available.
At the start of the fund's fiscal year in July, its average maturity was 17
days. By the end of December, its average maturity was 19 days.
FOCUS ON COMMERCIAL PAPER
As has been the case for some time now, commercial paper composed the bulk 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 minimal additional risk, especially at the shorter end of the
maturity spectrum. This has made commercial paper especially popular among
money market investors in the current environment. With the economy apparently
on a stable footing, we had relatively little concern about credit downgrades,
which enabled us to focus on income. The fund maintained a minimal position in
U.S. government agency securities.
In addition, variable-rate demand instruments accounted for approximately a
quarter of fund assets. Yields on these securities rise and fall with interest
rates, so this strategy helps boost the fund's yield when rates are climbing.
OUTLOOK FOR 2006: FLATTER RATES MAY LIE AHEAD
With economic growth accelerating, inflation concerns increasing, and the
unemployment rate dropping, we remain cautious. As most market observers had
expected, the Fed extended its tightening program at its policy meeting on
January 31, 2006. This brought the Federal funds rate to 4.50%-a relatively
neutral rate.
1
IXIS CASH MANAGEMENT TRUST -- MONEY MARKET SERIES
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However, there is some risk that rates could climb even higher, at least
temporarily, if the Fed decides it is necessary to keep inflation pressures in
check. Recent comments made by Ben Bernanke, the newly elected Federal Reserve
chairman, seem to support the prevailing view.
Fed officials also recently revised the language of their closely watched
policy statement, implying that they may be close to the end of their
tightening cycle, while still leaving open the possibility of more aggressive
rate hikes in the future.
With this in mind, we plan to take a wait-and-see approach in the next several
months. If we believe that the Fed is finished raising rates, we may begin to
extend the fund's maturity to lock in higher yields. However, if the economy
takes an unexpected turn, or inflation appears likely to pick up steam, the Fed
may decide it has no other option than to increase rates aggressively. This
would cause us to keep average maturity relatively short in an effort to
maintain the flexibility we need in order to move quickly later in the cycle.
Annualized Seven-Day Yield -- December 31, 2005
Class A, B & C 3.44%
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 /-- December 31, 2005
6 Months 1 Year 5 Years 10 Years
Class A (Inception 7/10/78)
Net Asset Value 1.47% 2.38% 1.55% 3.25%
Class B (Inception 9/13/93)
Net Asset Value 1.47% 2.38% 1.55% 3.25%
Class C (Inception 3/1/98) Since Inception
Net Asset Value 1.47% 2.38% 1.55% 2.81%
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/1/These returns include reinvestment of distributions, represent past
performance and do not predict future results.
2
ADDITIONAL INFORMATION
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.
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.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
3
UNDERSTANDING YOUR FUND'S EXPENSES
As a mutual fund shareholder, you incur different costs: transaction costs and
ongoing costs, including management 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 for each class shows the actual account values and
actual fund expenses you would have paid on a $1,000 investment in the Fund
from July 1, 2005 through December 31, 2005. 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 for each Class 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 7/1/05 12/31/05 7/1/05 - 12/31/05
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CLASS A
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Actual $1,000.00 $1,014.70 $4.67
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Hypothetical (5% return before expenses) $1,000.00 $1,020.57 $4.69
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CLASS B
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Actual $1,000.00 $1,014.70 $4.67
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Hypothetical (5% return before expenses) $1,000.00 $1,020.57 $4.69
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CLASS C
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Actual $1,000.00 $1,014.70 $4.67
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Hypothetical (5% return before expenses) $1,000.00 $1,020.57 $4.69
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*Expenses are equal to the fund's annualized expense ratio of 0.92% 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
IXIS CASH MANAGEMENT TRUST -- MONEY MARKET SERIES
PORTFOLIO OF INVESTMENTS
Investments as of December 31, 2005 (unaudited)
Principal
Amount Description Value (a)
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COMMERCIAL PAPER -- 57.6% of Net Assets
Asset-Backed -- 14.0%
$ 4,500,000 Apreco, Inc.,
4.150%, 1/12/2006(e) $ 4,494,294
4,000,000 Apreco, Inc.,
4.260%, 1/24/2006(e) 3,989,113
14,000,000 Credit Supportkhart Funding LLC,
4.350%, 2/06/2006(e) 13,939,100
10,000,000 ASAP Funding, Ltd,
4.370%, 2/06/2006(e) 9,956,300
5,000,000 Apreco, Inc.,
4.360%, 2/15/2006(e) 4,972,750
---------------
37,351,557
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Banking -- 7.5%
5,000,000 Canadian Imperial Holdings,
4.185%, 1/03/2006 4,998,837
10,000,000 Depfa Bank Plc,
4.220%, 1/23/2006(e) 9,974,211
5,000,000 Natexis Banque NY,
4.060%, 2/01/2006 5,000,000
---------------
19,973,048
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Education -- 5.4%
14,500,000 Johns Hopkins University,
4.200%, 1/11/2006 14,500,000
---------------
Financial -- 11.1%
5,000,000 Triple A One Funding Corp.,
4.290%, 1/09/2006(e) 4,995,233
6,000,000 Louis Dreyfus Corp., (Credit Support: Calyon),
4.190%, 1/10/2006 5,993,715
6,000,000 Louis Dreyfus Corp., (Credit Support: Calyon),
4.300%, 1/19/2006 5,987,100
2,850,000 Ivory Funding Corp.,
4.310%, 1/25/2006(e) 2,841,811
5,000,000 UBS Finance Delaware LLC,
4.265%, 1/31/2006 4,982,229
5,000,000 UBS Finance Delaware LLC,
4.275%, 1/31/2006 4,982,188
---------------
29,782,276
---------------
Health Care-Services -- 1.9%
5,000,000 Dean Health Systems, Inc., (Credit Support: Marshall & Ilsley),
4.300%, 1/19/2006 4,989,250
---------------
Real Estate -- 3.7%
10,000,000 Yorkshire Building Society
4.220%, 2/09/2006 9,954,283
---------------
Special Purpose -- 9.3%
5,000,000 Greyhawk Funding LLC,
4.160%, 1/10/2006(e) 4,994,800
5,000,000 Scaldis Capital LLC,
4.280%, 1/10/2006(e) 4,994,650
5,000,000 Market Street Funding Corp.,
4.305%, 1/18/2006(e) 4,989,836
5,000,000 Charta LLC, (Credit Support: AMBAC Indemnity),
4.345%, 2/08/2006(e) 4,977,068
5,000,000 Greyhawk Funding LLC,
4.280%, 2/21/2006(e) 4,969,683
---------------
24,926,037
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Principal
Amount Description Value (a)
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Trade Receivables -- 4.7%
$ 2,500,000 Govco, Inc.,
4.250%, 1/10/2006 $ 2,497,344
10,000,000 Govco, Inc.,
4.300%, 1/26/2006 9,970,139
---------------
12,467,483
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Total Commercial Paper (Cost $153,943,934) 153,943,934
---------------
VARIABLE RATE DEMAND NOTES -- 23.5%
Auto Parts & Equipment -- 0.2%
400,000 White Hydraulics, Inc., (Credit Support: Amsouth Bank),
3.870%, 12/01/2006(c) 400,000
---------------
Financial -- 3.4%
100,000 Business Stationery LLC, (Credit Support: JP Morgan Chase),
3.870%, 8/01/2007(c) 100,000
2,170,000 SSK Co. LLC, (Credit Support: US Bank),
3.690%, 11/01/2021(c) 2,170,000
174,000 YSR LLC, (Credit Support: Amsouth Bank),
3.770%, 2/01/2023(c) 174,000
3,040,000 Alpine Capital Investments LLC, (Credit Support: First of America),
3.740%, 9/15/2027(c) 3,040,000
545,000 Tanner & Guin LLC, (Credit Support: Amsouth Bank),
3.770%, 9/01/2029(c) 545,000
3,130,000 MOB Management One LLC, (Credit Support: Columbus Bank &
Trust),
3.870%, 12/01/2031(c) 3,130,000
---------------
9,159,000
---------------
Health Care-Services -- 3.1%
8,400,000 American Health Centers, Inc., (Credit Support: Amsouth Bank),
4.390%, 3/01/2019(c) 8,400,000
---------------
Manufacturing -- 0.0%
100,000 Harris Metals LLC, (Credit Support: Amsouth Bank),
4.390%, 3/01/2019(c) 100,000
---------------
Municipal -- 12.7%
4,945,000 New York City Industrial Development Agency, (Airis JFK I LLC),
(Credit Support: Bayerishe Landesbank),
4.380%, 7/01/2008(c) 4,945,000
315,000 Birmingham, AL, Special Care Facilities Financing Authority, (Eye
Foundation, Inc. (The)), (Credit Support: Columbus Bank & Trust),
3.840%, 9/01/2018(c) 315,000
19,000,000 New Jersey Economic Development Authority, (Marina Energy
LLC), (Credit Support: First Union),
4.380%, 9/01/2021(c) 19,000,000
5,000,000 Connecticut State Housing Finance Authority, (Credit Support:
AMBAC Indemnity),
4.480%, 5/15/2033(c) 5,000,000
4,544,838 Los Angeles, CA, Community Redevelopment Agency, (Security
Building), (Credit Support: FNMA),
4.480%, 12/15/2034(c) 4,544,838
---------------
33,804,838
---------------
Real Estate -- 4.1%
240,000 Sheffield Realty LLC, (Credit Support: Amsouth Bank),
3.770%, 4/01/2012(c) 240,000
915,000 Shayeson-Huff Properties LLC, (Credit Support: Firstar Bank),
3.740%, 11/01/2016(c) 915,000
1,900,000 Jobs Co. LLC (The), (Credit Support: First Commercial),
3.740%, 2/01/2022(c) 1,900,000
641,000 Pine Tree Country Club, (Credit Support: Amsouth Bank),
3.770%, 8/01/2023(c) 641,000
See accompanying notes to financial statements.
5
IXIS CASH MANAGEMENT TRUST -- MONEY MARKET SERIES
PORTFOLIO OF INVESTMENTS (continued)
Investments as of December 31, 2005 (unaudited)
Principal
Amount Description Value (a)
- ------------------------------------------------------------------------------------------
Real Estate -- continued
$ 4,495,000 Storage World LLC, (Credit Support: Regions Bank),
3.600%, 12/01/2024(c) $ 4,495,000
2,610,000 J&M LLC, Secured Promissary Note, (Credit Support: First
Commercial),
3.840%, 10/01/2026(c) 2,610,000
---------------
10,801,000
---------------
Total Variable Rate Demand Notes (Cost $62,664,838) 62,664,838
---------------
MEDIUM TERM NOTES -- 13.5%
Banking -- 3.4%
4,000,000 Bank of America Corp.,
4.310%, 6/07/2006(d) 4,000,000
5,000,000 Bank of America Corp.,
4.310%, 12/15/2006(d) 5,000,000
---------------
9,000,000
---------------
Financial -- 10.1%
10,000,000 Caterpillar Financial Services Corp., 144A,
4.230%, 7/10/2006(d) 10,000,000
7,000,000 Sigma Finance, Inc., 144A ,
4.329%, 9/12/2006(d) 6,999,757
5,000,000 General Electric Capital Corp., 144A,
4.470%, 1/17/2007(d) 5,000,000
5,000,000 Merrill Lynch & Co., Inc., 144A,
4.341%, 2/02/2007(d) 5,003,534
---------------
27,003,291
---------------
Total Medium Term Notes (Cost $36,003,291) 36,003,291
---------------
CERTIFICATES OF DEPOSIT -- 3.7%
5,000,000 Wells Fargo Bank NA,
4.300%, 1/25/2006 4,999,998
5,000,000 Dexia Credit Credit Supportal S.A.,
4.280%, 1/31/2006 5,000,042
---------------
Total Certificates of Deposit (Cost $10,000,400) 10,000,040
---------------
TIME DEPOSIT -- 2.2%
6,000,000 BNP Paribas,
4.125%, 1/03/2006 6,000,000
---------------
Total Time Deposits (Cost $6,000,000) 6,000,000
---------------
SHORT TERM INVESTMENT -- 0.0%
106,431 Tri-Party Repurchase Agreement with Fixed Income Clearing
Corporation, dated 12/30/2005 at 2.05% to be repurchased at
$106,455 on 1/03/2006, collateralized by $90,000 U.S.
Treasury Bond, 6.00% due 2/15/2026 valued at $108,871 106,431
---------------
Total Short-Term Investment (Cost $106,431) 106,431
---------------
Total Investments -- 100.5%
(Identified Cost $268,718,534)(b) 268,718,534
Other assets less liabilities -- (0.5)% (1,402,199)
---------------
Net Assets -- 100% $ 267,316,335
===============
(a) See Note 2a of Notes to Financial Statements.
(b) The aggregate cost for federal income tax purposes was $268,718,534.
(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 or other
financial institutions. Maturity dates shown represent the ultimate maturity of the note.
(d) Floating rate note. Rate shown is as of December 31, 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 December 31, 2005, these securities
amounted to $80,088,849 which represents 30.0% 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 registration, normally to qualified
institutional buyers. At the period end, the value of these securities amounted to
$27,003,291 or 10.1% of net assets.
AMBAC American Municipal Bond Assurance Corporation
FNMA Federal National Mortgage Association
Holdings at December 31, 2005 as a Percentage of Net Assets (unaudited)
Financial 24.6%
Asset-Backed 14.0
Municipal 12.7
Banking 10.9
Special Purpose 9.3
Real Estate 7.8
Education 5.4
Health Care-Services 5.0
Trade Receivables 4.7
Certificates of Deposit 3.7
Time Deposit 2.2
Others, less than 2% each 0.2
See accompanying notes to financial statements.
6
STATEMENT OF ASSETS & LIABILITIES
December 31, 2005 (unaudited)
ASSETS
Investments, at amortized cost $ 268,718,534
Cash 9
Receivable for:
Shares sold 545,132
Interest 542,789
---------------------
TOTAL ASSETS 269,806,464
---------------------
LIABILITIES
Payable for:
Shares redeemed 1,815,100
Dividends 14,410
Accrued expenses:
Management fees 80,682
Deferred Trustees' fees 215,717
Administrative fees 24,151
Other expenses 340,069
---------------------
TOTAL LIABILITIES 2,490,129
---------------------
NET ASSETS $ 267,316,335
=====================
NET ASSETS CONSIST OF:
Paid-in capital $ 267,287,235
Undistributed net investment income 26,460
Accumulated net realized gain on
investments 2,640
---------------------
NET ASSETS $ 267,316,335
=====================
COMPUTATION OF NET ASSET VALUE AND
OFFERING PRICE:
Class A shares:
Net assets $ 244,838,489
=====================
Shares of beneficial interest 244,808,100
=====================
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 $ 20,749,303
=====================
Shares of beneficial interest 20,751,105
=====================
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 $ 1,728,543
=====================
Shares of beneficial interest 1,728,245
=====================
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.
7
STATEMENT OF OPERATIONS
For the Six Months Ended December 31, 2005 (unaudited)
NET INVESTMENT INCOME
Interest $ 5,904,180
---------------------
Expenses
Management fees 538,071
Trustees' fees and expenses 12,213
Administrative fees 104,345
Custodian fees 35,690
Transfer agent fees 637,197
Audit and tax services 12,131
Legal fees 9,075
Shareholder reporting 41,095
Registration fees 32,802
Miscellaneous 5,135
---------------------
Total expenses 1,427,754
---------------------
Net investment income 4,476,426
---------------------
REALIZED GAIN ON INVESTMENTS 3,179
---------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 4,479,605
=====================
See accompanying notes to financial statements.
8
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
December 31,
2005
(unaudited)
---------------------
---------------------
FROM OPERATIONS:
Net investment income $ 4,476,426
Net realized gain (loss) on investments 3,179
---------------------
Increase in net assets resulting from operations 4,479,605
---------------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A (4,137,098)
Class B (312,972)
Class C (26,352)
---------------------
(4,476,422)
---------------------
FROM CAPITAL SHARE TRANSACTIONS (Note 5):
Proceeds from sale of shares 194,150,238
Net asset value of shares issued in connection with the reinvestment of distributions 5,012,243
Cost of shares redeemed (250,546,268)
---------------------
DECREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (51,383,787)
---------------------
Total decrease in net assets (51,380,604)
---------------------
NET ASSETS
Beginning of year 318,696,939
---------------------
End of year $ 267,316,335
=====================
UNDISTRIBUTED NET INVESTMENT INCOME $ 26,460
=====================
Year Ended
June 30,
2005
---------------------
---------------------
FROM OPERATIONS:
Net investment income $ 4,200,266
Net realized gain (loss) on investments (539)
---------------------
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 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
=====================
See accompanying notes to financial statements.
9
This Page Intentionally Left Blank
10
FINANCIAL HIGHLIGHTS
Income from investment operations: Less distributions:
---------------------------------- -----------------------------
Net asset
value, Dividends
beginning Net Total from from
of investment investment net investment Total
period income operations income distributions
---------- ---------- ---------- -------------- -------------
Class A, B, C
12/31/2005(b) $ 1.00 $ 0.0146 $ 0.0146 $ (0.0146) $ (0.0146)
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 BackBay 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.
(b) Forthe six months ended December 31, 2005 (unaudited).
(c) Computedon an annualized basis for periods of less than one year.
(d) Periodsless than one year are not annualized.
See accompanying notes to financial statements.
11
Ratios to average net assets:
--------------------------
Net asset Net assets,
value, Total end of Net investment
end of return period Expenses income
period (%) (000's) (%) (%)
---------- --------- ----------- --------- --------------
$ 1.00 1.5(d) $ 267,316 0.92(c) 2.89(c)
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
12
NOTES TO FINANCIAL STATEMENTS
December 31, 2005 (unaudited)
1. Organization. IXIS Cash Management Trust - Money Market Series (the "Fund")
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 or Loomis Sayles 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 that, 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. The repurchase agreements are
tri-party agreements whereby the collateral is held at the custodian bank in a
segregated account for the benefit of the Fund and the counterparty. 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, 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.
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 six months ended December 31, 2005,
purchases and proceeds from sales or maturities of short-term obligations
(including securities purchased subject to repurchase agreements) were
$4,258,557,605 and $4,319,041,671, respectively.
13
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2005 (unaudited)
4. Management Fees and Other Transactions with Affiliates.
a. Management Fees. IXIS Asset Management Advisors, L.P. ("IXIS Advisors")
serves as the investment adviser to the Fund. Under the terms of the management
agreement, the Fund pays 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 Next Over
$250 million $250 million $500 million $500 million $500 million $2 billion
- - ------------ ------------ ------------ ------------ ------------ ----------
0.35% 0.33% 0.31% 0.26% 0.25% 0.20%
For the six months ended December 31, 2005, management fees for the Fund were
$538,071 (0.345% of average daily net assets).
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"). Certain officers and directors of IXIS
Advisors are also officers or Trustees of the Fund.
b. Administrative Expense. IXIS Advisors provides certain administrative
services to the Fund and subcontracts with State Street Bank and Trust Company
("State Street Bank") to serve as subadministrator.
Pursuant to an agreement among 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 ("IXIS Advisor Funds Trusts"), Loomis Sayles
Funds I, Loomis Sayles Funds II ("Loomis Sayles Funds Trusts") and IXIS
Advisors, each Fund pays IXIS Advisors monthly its pro rata portion of fees
equal to an annual rate of 0.0675% of the first $5 billion of the average daily
net assets of the IXIS Advisor Funds Trusts and Loomis Sayles Funds Trusts,
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 IXIS Advisor Funds
Trusts and Loomis Sayles Funds Trusts of $5 million, which is reevaluated on an
annual basis.
Prior to September 1, 2005, Investors Bank & Trust Company served as the
subadministrator.
For the six months ended December 31, 2005, the Fund paid $104,345 to IXIS
Advisors for administrative expenses.
c. Transfer Agent Fees. Prior to October 1, 2005, IXIS Asset Management
Services Company ("IXIS Services") was the transfer and shareholder servicing
agent for the Fund and subcontracted with Boston Financial Data Services
("Boston Financial") to serve as sub-transfer agent. The Fund, for its Class A,
B and C shares, paid fees monthly to IXIS Services equal to an annual rate of
$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.
Effective October 1, 2005 Boston Financial became the transfer and shareholder
servicing agent for the Fund under a new agreement with the Trust. Under this
new agreement, the Fund pays fees to Boston Financial pursuant to a different
schedule.
For the period from July 1 to September 30, 2005, the Fund paid $258,057 to
IXIS Services as compensation for its services as transfer agent.
IXIS Services (prior to October 1, 2005), Boston Financial and other firms are
also reimbursed by the Fund for out-of-pocket expenses. In addition, pursuant
to other servicing agreements, the Fund paid 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"), 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 or their affiliates. The
Chairperson of the Board receives a retainer fee at the annual rate of
$200,000. The Chairperson does not receive any meeting attendance fees for
Board of Trustees meetings or committee meetings that she attends. Each
independent Trustee (other than the Chairperson) receives, in the aggregate, a
retainer fee at the annual rate of $55,000. Each independent Trustee also
receives a meeting attendance fee of $6,000 for each meeting of the Board of
Trustees that he or she attends in person and $3,000 for each meeting of the
Board of Trustees that he or she attends telephonically. In addition, each
committee chairman receives an additional retainer fee at the annual rate of
$10,000. Each committee member receives $4,000 for each committee meeting that
he or she attends in person and $2,000 for each committee meeting that he or
she attends telephonically. These fees are allocated among the funds in the
IXIS Advisor Funds Trusts and 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.
Prior to November 18, 2005, the Trust had co-chairmen of the Board. Prior to
October 1, 2005, each independent Trustee received, 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 attended. The
co-chairmen of the Board each received an additional annual retainer of
$25,000. Each committee chairman received an additional retainer fee at the
annual rate of $7,000. Each committee member received $3,750 for each committee
meeting that he or she attended.
14
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2005 (unaudited)
Effective January 1, 2006, each Audit Committee member will be compensated
$5,000 for each Audit Committee meeting that he or she attends in person and
$2,500 for each meeting he or she attends telephonically.
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 six months ended
December 31, 2005, the Fund's portion of such expense was approximately $1,200.
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:
Six Months Ended Year Ended
December 31, 2005 June 30, 2005
----------------- -------------
Class A
Shares sold 189,411,386 378,427,656
Shares issued in connection with the reinvestment of distributions 4,646,024 3,803,151
----------------- -------------
194,057,410 382,230,807
Shares repurchased (243,661,704) (426,007,151)
----------------- -------------
Net decrease (49,604,294) (43,776,344)
----------------- -------------
Class B
Shares sold 4,297,525 9,934,024
Shares issued in connection with the reinvestment of distributions 338,028 287,076
----------------- -------------
4,635,553 10,221,100
Shares repurchased (6,361,217) (15,549,063)
----------------- -------------
Net decrease (1,725,664) (5,327,963)
----------------- -------------
Class C
Shares sold 441,327 973,530
Shares issued in connection with the reinvestment of distributions 28,191 23,197
----------------- -------------
469,518 996,727
Shares repurchased (523,347) (1,741,034)
----------------- -------------
Net decrease (53,829) (744,307)
----------------- -------------
Decrease from capital share transactions (51,383,787) (49,848,614)
================= =============
15
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
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)Not applicable.
(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 exhibits (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 is
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 and Chief Executive
Officer
Date: February 27, 2006
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 and Chief Executive
Officer
Date: February 27, 2006
By: /s/ Michael C. Kardok
-----------------------------
Name: Michael C. Kardok
Title: Treasurer
Date: February 27, 2006