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
________________________________________________________________________________
(Exact name of registrant as specified in charter)
399 Boylston Street, Boston, Massachusetts 02116
_____________________________________________________________________________
(Address of principal executive offices) (Zip code)
Coleen Downs Dinneen, Esq.
IXIS Asset Management Distributors, L.P.
399 Boylston Street
Boston, Massachusetts 02116
________________________________________________________________________________
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 449-2810
Date of fiscal year end: June 30
Date of reporting period: June 30, 2006
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, 2006
IXIS Cash Management Trust -- Money Market Series
Reich & Tang Asset Management
TABLE OF CONTENTS
Management Discussion Page 1
and Performance.........
Portfolio of Investments Page 8
Financial Statements.... Page 10
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 past 12 months, the Federal Reserve Board raised the federal funds
rate (the rate banks charge one another on overnight loans) eight times in
0.25% increments, in an effort to curb economic growth and keep inflation
pressures in check. These rate hikes translated into higher yields on money
market investments. The federal funds rate influences borrowing costs in many
other parts of the economy.
For the fiscal year ended June 30, 2006, IXIS Cash Management Trust -- Money
Market Series maintained a constant net asset value of $1.00 per share and
provided a total return of 3.56% based on the net asset value of Class A shares
and $0.0351 per share in reinvested dividends. The fund's seven-day SEC yield
at the end of the period was 4.39%.
FED FUNDS RATE REACHES FIVE-YEAR HIGH
The fund's fiscal year began on July 1, 2005, on the heels of a 0.25% hike in
short-term interest rates, which brought the federal funds rate up to 3.25%.
The Fed continued to raise rates at each of its subsequent meetings: in August,
September, November, December, January, March, May and June. By the mid-point
in the fund's fiscal year, the federal funds rate had reached 4.25%, and by the
end of June 2006 it had risen to 5.25%, its highest level in more than five
years.
Ben Bernanke, who took over from Alan Greenspan as Fed chairman in January, has
a reputation as an inflation fighter, but time will bear this out. The Fed has
indicated that it expects the economy to expand more gradually later in the
year as the housing market cools, and it is closely tracking energy prices.
Recent statements suggest the Fed might raise rates again by another 0.25% at
the next meeting if inflation pressures remain strong. However, if pressures
seem to be subsiding, they could leave them unchanged.
MANAGERS SEEK TO CAPTURE HIGHER YIELDS AND MAINTAIN FLEXIBILITY
Our strategies have been designed to seek as much income as possible while
maintaining flexibility in an effort to take advantage of rising interest rates.
Although longer-term money market securities offer a yield advantage over
shorter-term issues, this year we generally felt the risks of going long in
pursuit of current income were not justified, since the prospects of even
higher rates seemed likely. As a result, although we gradually lengthened
maturities in the latter half of the year, we still kept the fund's average
maturity on the shorter side, providing the liquidity needed to take advantage
of higher yielding issues when they became available. We strayed from this
strategy only briefly during the latter half of the period.
After the March rate hike, and before the Fed's May meeting, it was less clear
than in previous months what its next actions might be. During that brief
period, many observers believed the Fed might pause in its cycle of rate
increases, so we extended the fund's maturity to lock in rates.
At the start of the fund's fiscal year in July 2005, the fund's average
maturity stood at 17 days. By mid-year (December 31) average maturity had edged
up to 19 days. As of June 30, 2006, we had advanced the fund's average maturity
to 46 days.
PORTFOLIO FOCUSED ON COMMERCIAL PAPER
Throughout the year, the bulk of the fund's portfolio was composed of
commercial paper. 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 favor government and agency
securities because of their relative stability and safety. However, when the
economy appears to be on safer footing, reducing the prospect of credit
downgrades, we generally maintain only a nominal position in government issues
because the yields on these top-quality securities are lower than yields on
commercial paper.
1
IXIS CASH MANAGEMENT TRUST -- MONEY MARKET SERIES
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To provide additional flexibility, we also maintained a significant portion of
assets in variable-rate instruments (28% of the fund's assets as of June 30,
2006). Yields on these securities rise with short-term rates as a whole,
allowing the fund's yield to float upward with each of the Fed's moves during
the year.
HIGHER INTEREST RATES MAY LIE AHEAD
It can take months for rate hikes to work through the economy, so the Fed's
goal is to avoid raising rates too aggressively, which might stifle growth. On
the other hand, it also wants to avoid appearing to be "soft" on inflation.
Many economists expect the Fed to raise rates again at their August meeting and
then pause. If Mr. Bernanke is as hawkish on inflation as he appears to be, we
believe rates may continue to rise, and the federal funds rate may reach 5.5%
or 6% before the current cycle ends.
In general, we remain cautious on interest rates. We will continue to carefully
monitor business activity, watching for signs that higher energy prices might
put the brakes on the economy without the need for aggressive Fed intervention
down the road. In the meantime, we are maintaining the fund's flexibility to
help us respond rapidly to new developments.
Annualized Seven-Day Yield -- June 30, 2006
Class A, B & C 4.39%
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, 2006
1 YEAR 5 YEARS 10 YEARS
CLASS A (Inception 7/10/78)
Net Asset Value 3.56% 1.51% 3.22%
CLASS B (Inception 9/13/93)
Net Asset Value 3.56% 1.51% 3.22%
CLASS C (Inception 3/1/98) SINCE INCEPTION
Net Asset Value 3.56% 1.51% 2.90%
- ----------------------------------------------------------
/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 (SEC'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, 2006 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 FUND 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 of fund shares shows the actual
account values and actual fund expenses you would have paid on a $1,000
investment in the fund from January 1, 2006 through June 30, 2006. 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 Period column as shown
below for your Class.
The second line in the table for each Class of fund shares 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 1/1/06 6/30/06 1/1/06 - 6/30/06
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CLASS A
- ------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,020.60 $3.51
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Hypothetical (5% return before expenses) $1,000.00 $1,021.32 $3.51
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CLASS B
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Actual $1,000.00 $1,020.60 $3.51
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Hypothetical (5% return before expenses) $1,000.00 $1,021.32 $3.51
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CLASS C
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Actual $1,000.00 $1,020.60 $3.51
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Hypothetical (5% return before expenses) $1,000.00 $1,021.32 $3.51
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*Expenses are equal to the fund's annualized expense ratio of 0.70% for Classes
A, B, and C, 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 THE EXISTING ADVISORY AND SUB-ADVISORY AGREEMENTS
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 adviser believes 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 the Fund (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 adviser and sub-adviser (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, also consider other matters 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 brokerage, if
any, including allocations to brokers affiliated with the Advisers and the use
of "soft" commission dollars to pay Fund expenses and to pay for research and
other similar services, (vii) 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 (viii) 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, 2006. 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, including
recent or planned investments by certain of the Advisers in additional
personnel or other resources. They also took note of the competitive market for
talented personnel, in particular, for personnel who have contributed to the
generation of strong investment performance. They also considered the need for
the Advisers to offer competitive compensation in order to attract and retain
capable personnel. 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. In particular, the
Trustees noted that IXIS Advisors had over the past year negotiated changes to
the Fund's transfer agency and custodial arrangements, resulting in significant
cost savings for the Fund. The Trustees also noted that some of these changes
had resulted in increases in costs or decreases in revenues for IXIS Advisors
and its affiliates. They also considered the administrative services provided
by IXIS Advisors and its affiliates 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 Fund 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 or other relevant factors
supported the renewal of the Agreements. Although the Fund had performance that
lagged that of a relevant peer group for certain periods, the Board
5
BOARD APPROVAL OF THE EXISTING ADVISORY AND SUB-ADVISORY AGREEMENTS
concluded that other factors relevant to performance supported renewal of the
Fund's Agreements. These factors included (1) that the Fund's advisory fee had
recently been reduced, with the goal of helping the Fund's net return to
shareholders become more competitive and (2) that reductions in the Fund's
expense levels resulting from decreased expenses were not yet fully reflected
in the Fund's performance results.
The Trustees also considered the Advisers' performance and reputation
generally, the performance of the 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.
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 their peer groups 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 the Fund. The Trustees also
considered that over the past several years, management had made
recommendations regarding reductions in advisory fee rates.
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. In this regard, the Fund, at the request of the Independent
Trustees, retained an independent accounting firm to review the cost allocation
methods used by the Advisers to determine profitability, and engaged in
extensive discussions with the Advisers regarding such methods and Adviser
profitability generally. The Trustees also considered that IXIS Advisors had
proposed changes to the Fund's transfer agency and custodial arrangements
which, although beneficial to the Fund, had resulted in increased costs and/or
decreased revenues to IXIS Advisors. They also reviewed information provided by
management about the effect of distribution costs and Fund growth on Adviser
profitability. When reviewing profitability, the Trustees also considered
information about court cases in which adviser profitability was an issue, the
performance of the Fund, the expense levels 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 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 Fund, 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.
6
BOARD APPROVAL OF THE EXISTING ADVISORY AND SUB-ADVISORY 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 administrative services.
.. so-called "fallout benefits" to the Advisers, such as the engagement of
affiliates of the Advisers to provide distribution 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 each of the existing advisory and sub-advisory agreements should
be continued through June 30, 2007.
7
IXIS CASH MANAGEMENT TRUST -- MONEY MARKET SERIES
PORTFOLIO OF INVESTMENTS
Investments as of June 30, 2006
Principal
Amount Description Value (a)
- ---------------------------------------------------------------------------------------------
Commercial Paper -- 48.3% of Net Assets
Asset-Backed -- 7.0%
$ 5,000,000 Clipper Receivables Corp.,
5.110%, 7/10/2006(e) $ 4,993,613
13,000,000 Lockhart Funding LLC,
5.250%, 7/20/2006(e) 12,963,979
---------------
17,957,592
---------------
Banking -- 7.0%
5,000,000 Alliance & Leicester PLC,
4.960%, 7/13/2006(e) 4,991,733
4,000,000 Caisse Centrale Desjardins,
5.000%, 7/18/2006 3,990,556
5,000,000 Banco Bilbao Vizcaya Argentaria, S.A.,
5.060%, 8/14/2006 4,969,078
4,000,000 ICICI Bank Limited,
5.365%, 12/01/2006 3,908,795
---------------
17,860,162
---------------
Education -- 4.7%
12,000,000 Johns Hopkins University,
5.050%, 7/06/2006 12,000,000
---------------
Financial -- 1.9%
5,000,000 HBOS Treasury Services PLC,
5.050%, 8/11/2006 4,971,243
---------------
Health Care - Services -- 3.9%
10,000,000 Dean Health Systems, Inc., (Credit Support: Marshall & Ilsley),
5.130%, 7/11/2006 9,985,750
---------------
Special Purpose -- 19.2%
10,000,000 Chesham Finance LLC,
5.320%, 7/03/2006(e) 9,997,044
5,000,000 Greyhawk Funding LLC,
5.060%, 7/05/2006(e) 4,997,189
8,708,000 Scaldis Capital LLC,
5.060%, 7/07/2006(e) 8,700,656
10,000,000 Sheffield Receivables Corp.,
5.110%, 7/12/2006 9,984,386
5,500,000 Alpine Securitization Corp.,
5.020%, 7/14/2006(e) 5,490,030
5,000,000 Greyhawk Funding LLC,
5.090%, 7/18/2006(e) 4,987,982
5,000,000 Charta LLC, (Credit Support: AMBAC Indemnity),
5.100%, 7/19/2006(e) 4,987,250
---------------
49,144,537
---------------
Trade Receivables -- 4.6%
5,000,000 Govco, Inc.,
4.900%, 7/06/2006(e) 4,996,597
1,700,000 Windmill Funding I Corp.,
5.080%, 7/13/2006(e) 1,697,121
5,000,000 Govco, Inc.,
5.050%, 8/11/2006(e) 4,971,243
---------------
11,664,961
---------------
Total Commercial Paper (Identified Cost $123,584,245) 123,584,245
---------------
Certificates of Deposit -- 15.6%
10,000,000 UBS Finance Delaware LLC,
5.045%, 7/05/2006 10,000,000
5,000,000 DZ Bank AG Deutsche Zentral-Genossenschaftsbank,
5.310%, 8/08/2006 5,000,000
5,000,000 Canadian Imperial Holdings,
5.070%, 11/24/2006 5,000,000
Principal
Amount Description Value (a)
- -------------------------------------------------------------------------------------------------
Certificates of Deposit -- continued
$ 5,000,000 Royal Bank Scotland PLC,
4.805%, 1/16/2007 $ 5,000,132
5,000,000 Wells Fargo Bank NA,
4.865%, 1/31/2007 4,999,840
5,000,000 Wells Fargo Bank NA,
5.250%, 4/20/2007 5,000,000
5,000,000 Calyon North America Holding, Inc.,
5.425%, 6/04/2007 5,000,222
---------------
Total Certificates of Deposit (Identified Cost $40,000,194) 40,000,194
---------------
Medium Term Notes -- 14.1%
Banking -- 3.5%
5,000,000 Bank of America Corp.,
5.310%, 12/15/2006(d) 5,000,000
4,000,000 Bank of America Corp.,
5.315%, 5/15/2007(d) 4,000,000
---------------
9,000,000
---------------
Broker/Dealer -- 3.9%
5,000,000 Merrill Lynch & Co., Inc.,
5.149%, 5/14/2007(d) 5,000,000
5,000,000 Merrill Lynch & Co., Inc., 144A,
5.189%, 7/03/2007(d) 5,002,968
---------------
10,002,968
---------------
Financial -- 6.7%
5,000,000 Caterpillar Financial Services Corp., 144A,
5.148%, 7/10/2006(d) 5,000,000
7,000,000 Sigma Finance, Inc., 144A,
5.159%, 9/12/2006(d) 6,999,930
5,000,000 General Electric Capital Corp., 144A,
5.352%, 7/17/2007(d) 5,000,000
---------------
16,999,930
---------------
Total Medium Term Notes (Identified Cost $36,002,898) 36,002,898
---------------
Variable Rate Demand Notes -- 14.0%
Auto Parts & Equipment -- 0.2%
400,000 White Hydraulics, Inc., (Credit Support: Amsouth Bank),
5.540%, 12/01/2006(c) 400,000
---------------
Financial -- 2.6%
2,960,000 Alpine Capital Investments LLC, (Credit Support: First of America),
5.450%, 9/15/2027(c) 2,960,000
495,000 Tanner & Guin LLC, (Credit Support: Amsouth Bank),
5.420%, 9/01/2029(c) 495,000
3,130,000 MOB Management One LLC, (Credit Support: Columbus
Bank & Trust),
5.690%, 12/01/2031(c), 3,130,000
---------------
6,585,000
---------------
Health Care - Services -- 3.2%
8,200,000 American Health Centers, Inc., (Credit Support: Amsouth Bank),
5.420%, 3/01/2019(c) 8,200,000
---------------
Municipal -- 3.8%
315,000 Birmingham, AL, Special Care Facilities Financing Authority, (Eye
Foundation, Inc. (The)), (Credit Support: Columbus Bank & Trust),
5.550%, 9/01/2018(c) 315,000
5,000,000 Connecticut State Housing Finance Authority, (Credit Support:
AMBAC Indemnity),
5.390%, 5/15/2033(c) 5,000,000
See accompanying notes to financial statements.
8
IXIS CASH MANAGEMENT TRUST -- MONEY MARKET SERIES
PORTFOLIO OF INVESTMENTS (continued)
Investments as of June 30, 2006
Principal
Amount Description Value (a)
- --------------------------------------------------------------------------------------------------
Municipal --continued
$ 4,544,838 Los Angeles, CA, Community Redevelopment Agency, (Security
Building), (Credit Support: FNMA),
5.470%, 12/15/2034(c) $ 4,544,838
---------------
9,859,838
---------------
Real Estate -- 4.2%
156,000 Sheffield Realty LLC, (Credit Support: Amsouth Bank),
5.420%, 4/01/2012(c) 156,000
915,000 Shayeson-Huff Properties LLC, (Credit Support: Firstar Bank),
5.450%, 11/01/2016(c) 915,000
1,825,000 Jobs Co. LLC (The), (Credit Support: First Commercial),
5.450%, 2/01/2022(c) 1,825,000
641,000 Pine Tree Country Club, (Credit Support: Amsouth Bank),
5.420%, 8/01/2023(c) 641,000
4,495,000 Storage World LLC, (Credit Support: Regions Bank),
5.370%, 12/01/2024(c) 4,495,000
2,610,000 J&M LLC, (Credit Support: First Commercial),
5.550%, 10/01/2026(c) 2,610,000
---------------
10,642,000
---------------
Total Variable Rate Demand Notes
(Identified Cost $35,686,838) 35,686,838
---------------
Time Deposit -- 4.2%
10,800,000 BNP Paribas,
5.270%, 7/03/2006 10,800,000
---------------
Total Time Deposits (Identified Cost $10,800,000) 10,800,000
---------------
Government Agencies -- 3.9%
5,000,000 FHLMC,
4.760%, 2/09/2007 5,000,000
5,000,000 FHLMC,
5.350%, 5/25/2007 4,999,338
---------------
Total Government Agencies (Identified Cost $9,999,338) 9,999,338
---------------
Total Investments -- 100.1%
(Identified Cost $256,073,513)(b) 256,073,513
Other assets less liabilities--(0.1)% (257,387)
---------------
Net Assets -- 100% $ 255,816,126
===============
(a) See Note 2a of Notes to Financial Statements.
(b) The aggregate cost for federal income tax purposes was
$256,073,513.
(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 are
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 June 30, 2006.
(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, 2006, these securities amounted to
$73,774,437 which represents 28.8% 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 June 30, 2006, the value of these amounted to $22,002,898 or
8.6% of net assets.
AMBAC American Municipal Bond Assurance Corp.
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
Holdings at June 30, 2006 as a Percentage of Net Assets (unaudited)
Special Purpose 19.2%
Certificates of Deposit 15.6
Financial 11.2
Banking 10.5
Health Care-Services 7.1
Asset-Backed 7.0
Education 4.7
Trade Receivables 4.6
Time Deposit 4.2
Real Estate 4.2
Broker/Dealer 3.9
Government Agencies 3.9
Municipal 3.8
Others, less than 2% each 0.2
See accompanying notes to financial statements.
9
STATEMENT OF ASSETS & LIABILITIES
June 30, 2006
ASSETS
Investments, at amortized cost $ 256,073,513
Cash 42,298
Receivable for Fund shares sold 224,848
Interest receivable 944,880
--------------------
TOTAL ASSETS 257,285,539
--------------------
LIABILITIES
Payable for Fund shares redeemed 913,620
Dividends payable 20,378
Management fees payable 71,664
Deferred Trustees' fees 259,513
Administrative fees payable 15,189
Other accounts payable and accrued
expenses 189,049
--------------------
TOTAL LIABILITIES 1,469,413
--------------------
NET ASSETS $ 255,816,126
====================
NET ASSETS CONSIST OF:
Paid-in capital $ 255,786,928
Undistributed net investment income 26,461
Accumulated net realized gain on
investments 2,737
--------------------
NET ASSETS $ 255,816,126
====================
COMPUTATION OF NET ASSET VALUE AND
OFFERING PRICE:
Class A shares: (redemption price per
share is equal to net asset value
less any applicable contingent
deferred sales charge)(Note 1)
Net assets $ 233,269,873
====================
Shares of beneficial interest 233,239,397
====================
Net asset value and offering price
per share $ 1.00
====================
Class B shares: (redemption price per
share is equal to net asset value
less any applicable contingent
deferred sales charge)(Note 1)
Net assets $ 20,425,241
====================
Shares of beneficial interest 20,427,037
====================
Net asset value and offering price
per share $ 1.00
====================
Class C shares: (redemption price per
share is equal to net asset value
less any applicable contingent
deferred sales charge)(Note 1)
Net assets $ 2,121,012
====================
Shares of beneficial interest 2,120,709
====================
Net asset value and offering price
per share $ 1.00
====================
See accompanying notes to financial statements.
10
STATEMENT OF OPERATIONS
For the Year Ended June 30, 2006
NET INVESTMENT INCOME
Interest $ 12,305,212
---------------------
Expenses
Management fees 1,001,395
Trustees' fees and expenses 61,185
Administrative fees 176,825
Custodian fees and expenses 42,079
Transfer agent fees and expenses 768,035
Audit fees 31,759
Legal fees 17,191
Shareholder reporting expenses 166,421
Registration fees 65,802
Miscellaneous expenses 23,618
---------------------
Total expenses 2,354,310
---------------------
Net investment income 9,950,902
---------------------
REALIZED GAIN ON INVESTMENTS 3,276
---------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 9,954,178
=====================
See accompanying notes to financial statements.
11
STATEMENT OF CHANGES IN NET ASSETS
Year Ended June 30,
2006
---------------------
FROM OPERATIONS:
Net investment income $ 9,950,902
Net realized gain (loss) on investments 3,276
---------------------
Net increase in net assets resulting from operations 9,954,178
---------------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A (9,167,041)
Class B (720,581)
Class C (63,275)
---------------------
Total distributions (9,950,897)
---------------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5):
Proceeds from sale of shares 391,863,262
Net asset value of shares issued in connection with the reinvestment of distributions 9,749,672
Cost of shares redeemed (464,497,028)
---------------------
NET DECREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (62,884,094)
---------------------
Net decrease in net assets (62,880,813)
---------------------
NET ASSETS
Beginning of the year 318,696,939
---------------------
End of the year $ 255,816,126
=====================
UNDISTRIBUTED NET INVESTMENT INCOME $ 26,461
=====================
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)
---------------------
Total distributions (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)
---------------------
NET DECREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (49,848,614)
---------------------
Net decrease in net assets (49,849,153)
---------------------
NET ASSETS
Beginning of the year 368,546,092
---------------------
End of the year $ 318,696,939
=====================
UNDISTRIBUTED NET INVESTMENT INCOME $ 26,456
=====================
See accompanying notes to financial statements.
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
6/30/2006 $ 1.00 $ 0.0351 $ 0.0351 $ (0.0351) $ (0.0351)
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)
(a)Including net realized gain (loss) on investments of less than $.0001 per
share.
See accompanying notes to financial statements.
13
Ratios to average net assets:
-----------------------------
Net assets,
Net asset Total end of Net investment
value, end return year Expenses income
of year (%) (000's) (%) (%)
---------- --------- ----------- --------- --------------
$ 1.00 3.6 $ 255,816 0.82 3.45
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
14
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
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 or Loomis Sayles 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 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 on behalf of 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
and any net realized capital gains at least annually. 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.
Permanent book and tax basis differences relating to shareholder distributions,
net investment income and net realized gains will result in reclassifications
to the capital accounts. Distributions from net investment income and
short-term capital gains are treated as ordinary income for tax purposes.
During the years ended June 30, 2006 and June 30, 2005, distributions of
$9,950,897 and $4,200,266, respectively, were paid to shareholders from
ordinary income on a tax basis.
At June 30, 2006, the Fund had undistributed ordinary income on a tax basis of
$294,023. The Fund utilized $539 of capital loss carryforward during the year
ended June 30, 2006 to reduce its current year gains. At year end June 30,
2006, there is no remaining capital loss carryforward. Certain capital losses
realized after October 31 within the taxable year may be deferred and treated
as occurring on the first day of the following tax year. The Fund has elected
to defer net capital losses arising between November 1, 2005 and June 30, 2006
of $29. The difference between the components of distributable earnings on a
tax basis and the amounts reported on the Statement of Assets and Liabilities
are primarily due to deferred Trustees' 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.
15
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2006
3. Investment Transactions. For the year ended June 30, 2006, purchases and
proceeds from sales or maturities of short-term obligations (including
securities purchased subject to repurchase agreements) were $7,712,901,244 and
$7,784,635,871, respectively.
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 year ended June 30, 2006, management fees for the Fund were $1,001,395
(0.35% 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 US
Group, L.P. ("IXIS US Group") (formerly, IXIS Asset Management North America,
L.P.), which is part of IXIS Asset Management Group, an international asset
management group based in Paris, France. IXIS Asset Management Group is
ultimately owned principally, directly or indirectly by three large affiliated
French financial services entities: the Caisse Nationale des Caisses d'Epargne,
a financial institution owned by CDC (as defined below) and by French regional
savings banks known as the Caisses d'Epargne; the Caisse des Depots et
Consignations ("CDC"), a public sector financial institution created by the
French government in 1816; and CNP Assurances, a large French life insurance
company. Certain officers and directors of IXIS Advisors and its affiliates are
also officers or Trustees of the Fund.
b. Administrative Expense. IXIS Advisors provides certain administrative
services for the Fund and has sub-contracted with State Street Bank and Trust
Company ("State Street Bank") to serve as subadministrator.
Pursuant to an agreement among the Trust, IXIS Advisor Funds Trust I, IXIS
Advisor Funds Trust II, IXIS Advisor Funds Trust III, IXIS Advisor Funds Trust
IV ("IXIS Advisor Funds Trusts"), Loomis Sayles Funds I, Loomis Sayles Funds II
("Loomis Sayles Funds Trusts") and IXIS Advisors, the 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 year ended June 30, 2006, the Fund paid $176,825 to IXIS Advisors for
administrative fees.
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, 2005 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 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"), a wholly-owned subsidiary of IXIS US Group, 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 US Group 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
16
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2006
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 Contract Review and Governance
Committee member is compensated $4,000 for each Committee meeting that he or
she attends in person and $2,000 for each meeting that he or she attends
telephonically. Each Audit Committee member is compensated $5,000 for each
Committee meeting that he or she attends in person and $2,500 for each 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 January 1, 2006, each committee member was compensated $4,000 for each
Audit Committee meeting that he or she attended in person and $2,000 for each
meeting he or she attended telephonically.
Prior to November 18, 2005, the Trust had co-chairmen of the Board who each
received an annual retainer of $25,000. 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. 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. In
addition, during the period October 1, 2005 to November 18, 2005, each
co-chairman received an additional one-time payment of $25,000 as compensation
for their services as chairmen.
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 period from July 1, 2005
through 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:
Year Ended Year Ended
June 30, 2006 June 30, 2005
------------- -------------
Class A
Shares sold 381,616,552 378,427,656
Shares issued in connection with the reinvestment of distributions 9,006,881 3,803,151
------------- -------------
390,623,433 382,230,807
Shares repurchased (451,796,430) (426,007,151)
------------- -------------
Net decrease (61,172,997) (43,776,344)
------------- -------------
Class B
Shares sold 8,462,489 9,934,024
Shares issued in connection with the reinvestment of distributions 684,466 287,076
------------- -------------
9,146,955 10,221,100
Shares repurchased (11,196,687) (15,549,063)
------------- -------------
Net decrease (2,049,732) (5,327,963)
------------- -------------
Class C
Shares sold 1,784,221 973,530
Shares issued in connection with the reinvestment of distributions 58,325 23,197
------------- -------------
1,842,546 996,727
Shares repurchased (1,503,911) (1,741,034)
------------- -------------
Net increase (decrease) 338,635 (744,307)
------------- -------------
Decrease from capital share transactions (62,884,094) (49,848,614)
============= =============
17
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Trustees of IXIS Advisor Cash Management Trust and Shareholders of
IXIS Cash Management Trust - Money Market Series:
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio 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 (the "Fund"), a series constituting IXIS Advisor Cash Management
Trust, at June 30, 2006, 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, 2006 by correspondence with the custodian, provide a
reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
August 15, 2006
18
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 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
Trust, Length of Time Principal Occupation(s) Fund Complex Overseen***
Name and Date of Birth Served and Term of Office* During Past 5 Years** and Other Directorships Held
- ---------------------- -------------------------- --------------------- ----------------------------
INDEPENDENT TRUSTEES
Graham T. Allison, Jr. Trustee, Douglas Dillon Professor and 38;
(3/23/40) since 1984 Director of the Belfer Center Director, Taubman Centers,
Contract Review and of Science for International Inc. (real estate investment
Governance Committee Affairs, John F. Kennedy trust)
Member School of Government,
Harvard University
Charles D. Baker Trustee, President and Chief Executive 38;
(11/13/56) since 2005 Officer, Harvard Pilgrim None
Contract Review and Health Care (health plan)
Governance Committee
Member
Edward A. Benjamin Trustee, Retired 38;
(5/30/38) since 2003 Director, Precision Optics
Chairman of the Contract Corporation (optics
Review and Governance manufacturer)
Committee Member
Daniel M. Cain Trustee, President and Chief Executive 38;
(2/24/45) since 1996 Officer, Cain Brothers & Director, Sheridan
Chairman of the Audit Company, Incorporated Healthcare Inc. (physician
Committee (formerly, Co- (investment banking) practice management)
Chairman of the Board,
August 2004 -- November
2005)
Paul G. Chenault Trustee, Retired; Trustee, First Variable 38;
(9/12/33) since 2003 Life (variable life insurance) Director, Mailco Office
Contract Review and Products, Inc. (mailing
Governance Committee equipment)
Member
Kenneth J. Cowan Trustee, Retired 38;
(4/5/32) since 1993 None
Contract Review and
Governance Committee
Member
(formerly, Chairman of the
Contract Review and
Governance Committee)
Richard Darman Trustee, Partner, The Carlyle Group 38;
(5/10/43) since 1996 (investments); formerly, Director and Chairman of
Contract Review and Professor, John F. Kennedy Board of Directors, AES
Governance Committee School of Government, Corporation (international
Member Harvard University power company)
19
TRUSTEE AND OFFICER INFORMATION
Position(s) Held with the Number of Portfolios in
Trust, Length of Time Principal Occupation(s) Fund Complex Overseen***
Name and Date of Birth Served and Term of Office* During Past 5 Years** and Other Directorships Held
- ---------------------- -------------------------- --------------------- ----------------------------
INDEPENDENT TRUSTEES
continued
Sandra O. Moose Trustee, President, Strategic Advisory 38;
(2/17/42) since 1982 Services (management Director, Verizon
Chairperson of the Board consulting); formerly, Senior Communications;
of Trustees Vice President and Director, Director, Rohm and Haas
Since November 2005 The Boston Consulting Group, Company (specialty
Ex officio member of the Inc. (management consulting) chemicals);
Audit Committee and Director, AES Corporation
Contract Review and (international power
Governance Committee company)
John A. Shane Trustee, President, Palmer Service 38;
(2/22/33) since 1993 Corporation (venture capital Director, Gensym
Audit Committee Member organization) Corporation (software and
technology service provider);
Director and Chairman of the
Board, Abt Associates Inc.
(research and consulting
firm)
Cynthia L. Walker Trustee, Executive Dean for 38;
(7/25/56) since 2005 Administration (formerly, None
Audit Committee Member Dean for Finance and CFO),
Harvard Medical School
INTERESTED TRUSTEES
Robert J. Blanding/1/ Trustee, President, Chairman, Director, 38;
(4/14/47) since 2003 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 for Loomis Sayles
Trust II
John T. Hailer/2/ Trustee, President and Chief Executive 38;
(11/23/60) since 2000 Officer, IXIS Asset None
President and Chief Management Advisors, L.P.,
Executive Officer IXIS Asset Management
Distributors, L.P. and IXIS
Asset Management Global
Associates, L.P.; Executive
Vice President, Loomis Sayles
Funds I; President and Chief
Executive Officer, AEW Real
Estate Income Fund, IXIS
Advisor Funds Trust I, IXIS
Advisor Funds Trust II, IXIS
Advisor Funds Trust III and
IXIS Advisor Funds Trust IV
20
TRUSTEE AND OFFICER INFORMATION
Position(s) Held with the Number of Portfolios in
Trust, Length of Time Principal Occupation(s) Fund Complex Overseen***
Name and Date of Birth Served and Term of Office* During Past 5 Years** and Other Directorships Held
- ---------------------- -------------------------- --------------------- ----------------------------
OFFICERS
Coleen Downs Dinneen Secretary, Clerk and Chief Senior Vice President, General Not Applicable
(12/16/60) Legal Officer, Counsel, Secretary and Clerk
since September 2004 (formerly, Deputy General
Counsel, Assistant Secretary
and Assistant Clerk), IXIS
Asset Management
Distribution Corporation, IXIS
Asset Management
Distributors, L.P. and IXIS
Asset Management
Advisors, L.P.
Michael C. Kardok Treasurer, Principal Senior Vice President, IXIS Not Applicable
(7/17/59) Financial and Accounting Asset Management Advisors,
Officer, L.P. and IXIS Asset
since 2004 Management Distributors,
L.P.; formerly, Senior Director,
PFPC Inc; formerly, Vice
President -- Division
Manager, First Data Investor
Services, Inc.
Max J. Mahoney Anti-Money Laundering Vice President, Deputy Not Applicable
(5/1/62) Officer and General Counsel, Assistant
Assistant Secretary, Secretary and Assistant Clerk,
since 2005 IXIS Asset Management
Distribution Corporation.
Senior Vice President, Deputy
General Counsel, Assistant
Secretary, Assistant Clerk and
Chief Compliance Officer --
Investment Adviser, IXIS Asset
Management Distributors, L.P.
and IXIS Asset Management
Advisors, L.P.; formerly,
Senior Counsel, MetLife, Inc.;
formerly, Associate Counsel,
LPL Financial Services, Inc.
21
TRUSTEE AND OFFICER INFORMATION
Position(s) Held with the Number of Portfolios in
Trust, Length of Time Principal Occupation(s) Fund Complex Overseen***
Name and Date of Birth Served and Term of Office* During Past 5 Years** and Other Directorships Held
- ---------------------- -------------------------- --------------------- ----------------------------
OFFICERS
continued
John E. Pelletier Chief Operating Officer, Executive Vice President and Not Applicable
(6/24/64) since 2004 Chief Operating Officer
(formerly, Senior Vice
President, General Counsel,
Secretary and Clerk), IXIS
Asset Management
Distribution Corporation, IXIS
Asset Management
Distributors, L.P. and IXIS
Asset Management Advisors,
L.P.; Executive Vice President,
Chief Operating Officer and
Director (formerly, President,
Chief Operating Officer and
Director), IXIS Asset
Management Services
Company.
Russell L. Kane Chief Compliance Officer, Chief Compliance Officer for Not Applicable
(7/23/69) since 2006; Mutual Funds, Vice President,
Assistant Secretary Associate General Counsel,
since 2004 Assistant Secretary and
Assistant Clerk, IXIS Asset
Management Distribution
Corporation, IXIS Asset
Management Distributors, L.P.
and IXIS Asset Management
Advisors, L.P.; formerly,
Senior Counsel, Columbia
Management Group.
* Each Trustee serves until retirement, resignation or removal from the Board
of Trustees. The current retirement age is 72, but the retirement policy was
suspended for the calendar year 2005. At a meeting held on August 26, 2005,
the Trustees voted to lift the suspension of the retirement policy and to
designate 2006 as a transition period so that any Trustees who are currently
age 72 or older or who reach age 72 during the remainder of 2006 will not be
required to retire until the end of calendar year 2006. The position of
Chairperson of the Board is appointed for a two-year term.
** 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. ("Loomis Sayles") 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, 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.
/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
and President and Chief Executive Officer of IXIS Asset Management Global
Associates, L.P., IXIS Asset Management Advisors, L.P. and the Distributor.
22
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.
Ms. Cynthia L. Walker, Mr. Daniel M. Cain and Mr. John Shane are members of the
audit committee and have been designated as "audit committee financial experts"
by the Board of Trustees. 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-related
Audit fees fees/1/ Tax fees/2/ All other fees/3/
--------------- ------------- ------------- -----------------
2005 2006 2005 2006 2005 2006 2005 2006
------- ------- ---- ------ ------ ------ ---- ------
Cash Management Trust $22,300 $22,750 N/A $3,679 $1,250 $1,250 N/A $2,755
- --------
1. Audit-related fees consist of the performance of agreed-upon procedures
related to 1) the Trust's deferred compensation plan and 2) a change in the
Trust's custodian.
2. Tax fees consist of a review of the Trust's year-end shareholder reporting.
3. Other fees consist of a review of income and expense allocation methods in
conjunction with the annual renewal of the Trust's management contract.
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 2006 and 2005 were $206,600 and $127,900, respectively.
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.
None 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.
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 this 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)
(a) (2) Certifications of Principal Executive Officer and Principal
Financial Officer pursuant to 30a-2 under the Investment Company
Act of 1940 (17 CFR 270.30a-2), as herewith as exhibits
(a)(2)(1)and (a)(2)(2)
(a)(3) Not applicable.
(b)Certification of Principal Executive Officer and Principal Financial
Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002 are filed
herewith as Exhibit (b)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
IXIS Advisor Cash Management Trust
By: /s/ John T. Hailer
---------------------------------
Name: John T. Hailer
Title: President & Chief Executive Officer
Date: August 23, 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 & Chief Executive Officer
Date: August 23, 2006
By: /s/ Michael C. Kardok
---------------------------------
Name: Michael C. Kardok
Title: Treasurer
Date: August 23, 2006