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, 2006
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]
Semiannual Report
December 31, 2006
IXIS Cash Management Trust -- Money Market Series
Reich & Tang Asset Management
TABLE OF CONTENTS
Management Discussion and Performance... Page 1
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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For the six months ended December 31, 2006, IXIS Cash Management Trust -- Money
Market Series maintained a constant price of $1.00 per share and provided a
total return of 2.36% based on the net asset value of Class A shares and
$0.0234 per share in reinvested dividends. The fund's seven-day SEC yield at
the end of the period was 4.67%.
After raising the federal funds rate in 0.25% increments 17 times since 2004,
the Federal Reserve Board paused following its June 2006 rate hike. (The fed
funds rate is the rate banks charge one another on overnight loans, and is the
only rate the Fed controls directly.) As a result, at the start of the fund's
fiscal year on July 1, 2006, the fed funds rate was 5.25%, up from a low of 1%
in June 2004. Since then the fed funds rate has remained steady. The Fed uses
interest rates as a tool to keep inflation under control. The fed funds rate is
critical to money market investors because it directly influences yields on
money market securities as well as borrowing costs in other parts of the
economy.
FED PAUSES IN ITS SERIES OF RATE INCREASES
During the first half of the fund's fiscal year, the Fed stood on the
sidelines, leaving short-term interest rates unchanged as they monitored
economic activity. The U.S. economy grew at a moderate pace during the
six-month period, slowing slightly from earlier in the year. A significant
correction in the formerly red-hot housing market, combined with record-high
gas prices, contributed to the slowdown. This hands-off approach stood in sharp
contrast to earlier periods.
Many observers believe that Fed Chairman Ben Bernanke deserves much credit for
not taking interest rates higher, as many were suggesting earlier in 2006 when
inflation stood at 4% by some measures. It has since fallen to about 2%. Under
Mr. Bernanke's guidance, the economy now appears to be on safe footing, with
inflation under control.
FUND'S AVERAGE MATURITY REMAINED IN THE MID RANGE
Our strategy during the six months ended December 31, 2006 remained consistent
with our approach in fiscal 2006. We worked to generate as much income as
possible while maintaining flexibility in the portfolio to capture higher rates
should they become available. With this in mind, we kept average maturity in
the one- to three-month range. This approach helped us to pick up some
additional yield without locking us into longer-term securities.
At the start of the fund's fiscal year in July, the fund's average maturity
stood at 46 days, compared with 43 days as of December 31, 2006.
FUND IS FOCUSED ON COMMERCIAL PAPER
Commercial paper remains the primary focus of the fund's portfolio. 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.
In addition, a combination of variable-rate demand instruments and
floating-rate notes accounted for approximately 21% of total assets. Yields on
these securities rise and fall with changes in short-term interest rates.
Although rates remained relatively steady, we maintained a substantial portion
of assets in these securities in anticipation of possible rate hikes in the
future.
During periods of economic uncertainty, we tend to favor government and agency
securities because of their relative safety. However, since the economy appears
to be on safe footing, we believe credit downgrades will be less likely than
they are during more turbulent times. This makes us feel comfortable shifting
to a slightly more aggressive pursuit of current income.
INFLATION IS KEY TO INTEREST-RATE FORECAST
The current consensus among investment professionals is that the U.S. economy
will avoid the recession that was once feared, with growth likely to stay
slightly above 2% through mid-2007.
1
IXIS CASH MANAGEMENT TRUST -- MONEY MARKET SERIES
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Today's economic outlook argues for keeping interest rates steady. Although
economic growth could be considered a bit anemic, it doesn't pose an inflation
risk, which is the Fed's primary concern. Of course, all future Fed moves are
data dependent. The Fed will be carefully monitoring economic statistics,
business figures, and global news, and keeping a watchful eye on inflation
prospects.
We are taking a wait-and-see approach as well, maintaining relatively short
maturities and monitoring both the economy and the Fed's actions closely, to
determine our course of action. Our current focus is on value as well as
current income - keeping average maturity on the shorter side - to capture
yields without sacrificing flexibility. This should help us maintain our
ability to move quickly to lock in higher rates when the opportunity seems
right.
Annualized Seven-Day Yield -- December 31, 2006
Class A, B & C 4.67%
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, 2006
6 MONTHS 1 YEAR 5 YEARS 10 YEARS
CLASS A (Inception 7/10/78)
Net Asset Value 2.36% 4.48% 1.74% 3.22%
CLASS B (Inception 9/13/93)
Net Asset Value 2.36% 4.48% 1.74% 3.22%
CLASS C (Inception 3/1/98) SINCE INCEPTION
Net Asset Value 2.36% 4.48% 1.74% 3.00%
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/1/These returns include reinvestment of distributions, represent past
performance and do not predict future results. Periods of less than one year
are not annualized.
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, D.C. 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 July 1, 2006 through December 31, 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 7/1/2006 12/31/2006 7/1/2006 - 12/31/2006
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CLASS A
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Actual $1,000.00 $1,023.60 $3.62
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Hypothetical (5% return before expenses) $1,000.00 $1,021.63 $3.62
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CLASS B
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Actual $1,000.00 $1,023.60 $3.62
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Hypothetical (5% return before expenses) $1,000.00 $1,021.63 $3.62
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CLASS C
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Actual $1,000.00 $1,023.60 $3.62
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Hypothetical (5% return before expenses) $1,000.00 $1,021.63 $3.62
*Expenses are equal to the fund's annualized expense ratio of 0.71% for Class
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, 2006 (Unaudited)
Principal
Amount Description Value (+)
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Commercial Paper -- 42.7% of Net Assets
Asset-Backed -- 10.9%
$ 12,000,000 Chesham Finance LLC,
5.340%, 1/02/2007(b) $ 11,998,220
5,000,000 Sheffield Receivables Corporation,
5.265%, 1/22/2007 4,984,644
10,000,000 Lockhart Funding LLC,
5.270%, 1/26/2007(b) 9,963,403
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26,946,267
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Banking -- 8.8%
5,000,000 Nationwide Building Society,
5.255%, 1/11/2007 4,992,701
5,000,000 Nationwide Building Society,
5.260%, 1/11/2007 4,992,695
7,000,000 Rabobank USA Financial Corporation,
5.270%, 1/02/2007 6,998,975
5,000,000 Societe Generale North America,
5.190%, 5/14/2007 4,904,129
---------------
21,888,500
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Diversified Financial Services -- 2.0%
5,000,000 Fountain Square Commercial Funding,
5.260%, 1/10/2007(b) 4,993,425
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Education -- 4.9%
12,000,000 Johns Hopkins University,
5.310%, 1/09/2007 12,000,000
---------------
Health Care - Services -- 4.0%
10,000,000 Dean Health Systems, Inc., (Credit Support: Marshall & Ilsley),
5.280%, 1/11/2007 9,985,333
---------------
Special Purpose -- 8.1%
5,000,000 Greyhawk Funding LLC,
5.260%, 1/10/2007(b) 4,993,425
5,000,000 Greyhawk Funding LLC,
5.270%, 1/19/2007(b) 4,986,825
5,000,000 Scaldis Capital Limited (Credit Support: Fortis Bank),
5.250%, 1/22/2007(b) 4,984,687
5,000,000 Scaldis Capital Limited (Credit Support: Fortis Bank),
5.240%, 3/13/2007(b) 4,948,328
---------------
19,913,265
---------------
Trade Receivables -- 4.0%
5,000,000 Govco, Inc.,
5.240%, 1/08/2007(b) 4,994,906
5,000,000 Govco, Inc.,
5.250%, 2/15/2007(b) 4,967,187
---------------
9,962,093
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Total Commercial Paper (Identified Cost $105,688,883) 105,688,883
---------------
Certificates of Deposit -- 32.3%
10,000,000 UBS AG,
5.300%, 1/05/2007 10,000,000
10,000,000 Deutsche Zentral-Genossenschaftsb AG,
5.320%, 1/05/2007 10,000,000
5,000,000 Svenska Handelsbanken,
5.300%, 1/12/2007 5,000,000
5,000,000 Royal Bank Scotland PLC,
4.805%, 1/16/2007 5,000,010
5,000,000 Wilmington Trust Company,
5.410%, 1/22/2007 5,000,000
Principal
Amount Description Value (+)
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Certificates of Deposit -- continued
$ 5,000,000 Wells Fargo Bank NA,
4.865%, 1/31/2007 $ 4,999,978
5,000,000 Canadian Imperial Bank of Commerce,
5.340%, 2/12/2007(c) 5,000,000
5,000,000 Wilmington Trust Company,
5.360%, 3/20/2007 5,000,000
5,000,000 Wells Fargo Bank NA,
5.250%, 4/20/2007 5,000,000
5,000,000 KBC Bank NV,
5.350%, 5/22/2007 5,000,000
5,000,000 Caylon North America, Inc.,
5.425%, 6/04/2007 5,000,101
5,000,000 Svenska Handelsbanken,
5.365%, 10/26/2007 4,999,019
5,000,000 Royal Bank of Canada,
5.400%, 11/09/2007 5,000,000
5,000,000 Canadian Imperial Bank of Commerce,
5.380%, 11/26/2007(c) 4,999,567
---------------
Total Certificates of Deposit (Identified Cost $79,998,675) 79,998,675
---------------
Medium Term Notes -- 9.7%
Banking -- 3.6%
5,000,000 Bank of America Corporation,
5.300%, 3/20/2007(c) 5,000,000
4,000,000 Bank of America Corporation,
5.315%, 5/15/2007(c) 4,000,000
---------------
9,000,000
---------------
Broker/Dealer -- 4.1%
5,000,000 Merrill Lynch & Co., Inc.,
5.315%, 5/14/2007(c) 5,000,000
5,000,000 Merrill Lynch & Co., Inc.,
5.410%, 1/04/2008(c)(e) 5,002,392
---------------
10,002,392
---------------
Financial -- 2.0%
5,000,000 General Electric Capital Corp.,
5.475%, 10/17/2007(c)(e) 5,000,000
---------------
Total Medium Term Notes (Identified Cost $24,002,392) 24,002,392
---------------
Variable Rate Demand Notes -- 7.6%
Financial -- 1.3%
3,130,000 MOB Management One LLC, (Credit Support: Columbus Bank &
Trust),
5.680%, 12/01/2031(d) 3,130,000
---------------
Municipal -- 2.0%
5,000,000 Connecticut State Housing Finance Authority, (Credit Support:
AMBAC Indemnity),
5.380%, 5/15/2033(d) 5,000,000
---------------
Real Estate -- 4.1%
156,000 Sheffield Realty LLC, (Credit Support: Amsouth Bank),
5.430%, 4/01/2012(d) 156,000
810,000 Shayeson-Huff Properties LLC, (Credit Support: Firstar Bank),
5.450%, 11/01/2016(d) 810,000
1,825,000 Jobs Co. LLC (The), (Credit Support: First Commercial),
5.430%, 2/01/2022(d) 1,825,000
641,000 Pine Tree Country Club, (Credit Support: Amsouth Bank),
5.430%, 8/01/2023(d) 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, 2006 (Unaudited)
Principal
Amount Description Value (+)
- -------------------------------------------------------------------------------------------------
Real Estate -- continued
$ 4,295,000 Storage World, LLC, (Credit Support: Regions Bank),
5.350%, 12/01/2024(d) $ 4,295,000
2,515,000 J&M, LLC, (Credit Support: First Commercial),
5.530%, 10/01/2026(d) 2,515,000
---------------
10,242,000
---------------
Special Purpose -- 0.2%
445,000 Tanner & Guin LLC, (Credit Support: Amsouth Bank),
5.430%, 9/01/2029(d) 445,000
---------------
Total Variable Rate Demand Notes
(Identified Cost $18,817,000) 18,817,000
---------------
Time Deposit -- 4.7%
11,500,000 BNP Paribas,
5.300%, 1/02/2007 11,500,000
---------------
Total Time Deposits (Identified Cost $11,500,000) 11,500,000
---------------
Government Agencies -- 2.0%
5,000,000 Federal Home Loan Mortgage Corp.,
4.760%, 2/09/2007 5,000,000
---------------
Total Government Agencies (Identified Cost $5,000,000) 5,000,000
---------------
Total Investments -- 99.0%
(Identified Cost $245,006,950)(a) 245,006,950
Other assets less liabilities--1.0% 2,383,077
---------------
Total Net Assets -- 100% $ 247,390,027
===============
(+) See Note 2a of Notes to Financial Statements.
(a) The aggregate cost for federal income tax purposes was
$245,006,950.
(b) 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, 2006, these securities amounted to
$56,830,406 which represents 22.9% of net assets.
(c) Floating rate note. Rate shown is as of December 31, 2006.
(d) 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.
(e) Illiquid security. At December 31, 2006, the value of these
securities amounted to $10,002,392, or 4.0% of net assets.
AMBAC American Municipal Bond Assurance Corp.
Holdings at December 31, 2006 as a Percentage of Net Assets (unaudited)
Certificates of Deposit 32.3%
Banking 12.4
Asset-Backed 10.9
Special Purpose 8.3
Education 4.9
Time Deposit 4.7
Real Estate 4.1
Broker/Dealer 4.1
Health Care - Services 4.0
Trade Receivables 4.0
Financial 3.3
Government Agencies 2.0
Municipal 2.0
Diversified Financial Services 2.0
See accompanying notes to financial statements.
6
STATEMENT OF ASSETS & LIABILITIES
December 31, 2006 (Unaudited)
IXIS Cash
Management Trust
--------------------
--------------------
ASSETS
Investments, at amortized cost $ 245,006,950
Cash 93,476
Receivable for Fund shares sold 1,688,883
Interest receivable 1,823,853
--------------------
TOTAL ASSETS 248,613,162
--------------------
LIABILITIES
Payable for Fund shares redeemed 568,367
Dividends payable 21,963
Management fees payable (Note 4) 69,928
Deferred Trustees' fees (Note 4) 267,579
Administrative fees payable (Note 4) 17,383
Other accounts payable and accrued expenses 277,915
--------------------
TOTAL LIABILITIES 1,223,135
--------------------
NET ASSETS $ 247,390,027
====================
NET ASSETS CONSIST OF:
Paid-in capital $ 247,360,425
Undistributed net investment income 26,461
Accumulated net realized gain on investments 3,141
--------------------
NET ASSETS $ 247,390,027
====================
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 $ 227,324,113
====================
Shares of beneficial interest 227,293,266
====================
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 $ 18,216,451
====================
Shares of beneficial interest 18,218,217
====================
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 $ 1,849,463
====================
Shares of beneficial interest 1,849,157
====================
Net asset value and offering price per share $ 1.00
====================
See accompanying notes to financial statements.
7
STATEMENT OF OPERATIONS
For the Six Months Ended December 31, 2006 (Unaudited)
IXIS Cash
Management Trust
---------------------
---------------------
NET INVESTMENT INCOME
Interest $ 6,967,383
---------------------
Expenses
Management fees (Note 4) 454,554
Trustees' fees and expenses (Note 4) 13,455
Administrative fees (Note 4) 78,071
Custodian fees and expenses 18,148
Transfer agent fees and expenses - Class A 250,718
Transfer agent fees and expenses - Class B 20,398
Transfer agent fees and expenses - Class C 2,132
Audit fees 15,283
Legal fees 9,075
Shareholder reporting expenses 57,405
Registration fees 33,177
Miscellaneous expenses 5,702
---------------------
Total expenses 958,118
---------------------
Less expense offset (a) (31,818)
---------------------
Net expenses 926,300
---------------------
Net investment income 6,041,083
---------------------
REALIZED GAIN ON INVESTMENTS 404
---------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 6,041,487
=====================
(a)Represents minimum balance fees deducted from shareholder accounts and
retained by the Fund, as described in the Fund's prospectus.
See accompanying notes to financial statements.
8
STATEMENT OF CHANGES IN NET ASSETS
IXIS Cash Management Trust
--------------------------------------------
Six Months Ended
December 31, 2006 Year Ended
(unaudited) June 30, 2006
--------------------- ---------------------
--------------------- ---------------------
FROM OPERATIONS:
Net investment income $ 6,041,083 $ 9,950,902
Net realized gain on investments 404 3,276
--------------------- ---------------------
Net increase in net assets resulting from
operations 6,041,487 9,954,178
--------------------- ---------------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A (5,543,001) (9,167,041)
Class B (450,965) (720,581)
Class C (47,117) (63,275)
--------------------- ---------------------
Total distributions (6,041,083) (9,950,897)
--------------------- ---------------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5):
Proceeds from sale of shares 195,432,329 391,863,262
Net asset value of shares issued in connection
with the reinvestment of distributions 5,904,483 9,749,672
Cost of shares redeemed (209,763,315) (464,497,028)
--------------------- ---------------------
NET DECREASE IN NET ASSETS FROM CAPITAL SHARE
TRANSACTIONS (8,426,503) (62,884,094)
--------------------- ---------------------
Net decrease in net assets (8,426,099) (62,880,813)
--------------------- ---------------------
NET ASSETS
Beginning of the period 255,816,126 318,696,939
--------------------- ---------------------
End of the period $ 247,390,027 $ 255,816,126
===================== =====================
UNDISTRIBUTED NET INVESTMENT INCOME $ 26,461 $ 26,461
===================== =====================
See accompanying notes to financial statements.
9
This Page Intentionally Left Blank
10
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
12/31/2006(b) $ 1.00 $ 0.0234 $ 0.0234 $ (0.0234) $ (0.0234)
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.
(b)For the six months ended December 31, 2006 (unaudited).
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 year Expenses income
year (%) (000's) (%) (%)
---------- --------- ----------- --------- --------------
$ 1.00 2.4(d) $ 247,390 0.71(c) 4.65(c)
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
(c)Computed on an annualized basis for period less than one year.
(d)Periods less than one year are not annualized.
12
NOTES TO FINANCIAL STATEMENTS
December 31, 2006 (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 ("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 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 the shares exchanged were subject to a
contingent deferred sales charge. For exchanges into the Fund, the holding
period for determining the contingent deferred sales charge for Class B and
Class C shares will stop and resume only when an exchange into an applicable
Fund occurs.
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 arrangements 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.
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 year ended June 30, 2006, distributions of $9,950,897 were paid to
shareholders from ordinary income on a tax basis.
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, subsidiaries of U.S. banks, or domestic
economic developments in a specific industry, state or region.
g. Indemnifications. Under the Trust'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 Funds that have not yet occurred. However, based on experience, the
Fund expects the risk of loss to be remote.
h. New Accounting Pronouncements. Financial Accounting Standards Board (FASB)
Interpretation No. 48, Accounting for Uncertainty in Income Taxes -- an
Interpretation of FASB Statement 109 ("FIN 48") was issued and became effective
for fiscal years beginning after December 15, 2006. FIN 48 sets forth a
threshold for financial statement recognition, measurement and disclosure of a
tax position taken or expected to be taken on a tax return. Subsequent thereto,
the United States Securities and Exchange Commission ("SEC") indicated that it
would not object if a fund first adopts FIN 48 on the last business day of the
first required financial reporting period for fiscal years
13
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2006 (Unaudited)
beginning after December 15, 2006. Accordingly, Management is continuing to
evaluate the impact the adoption of FIN 48 may have on the Fund's net assets
and results of operations. In compliance with the recently issued SEC guidance,
the impacts, if any, will be reflected in the Fund's annual financial
statements as of June 30, 2007.
In addition, in September, 2006, Statement of Financial Accounting Standards
No. 157, Fair Value Measurements ("SFAS 157"), was issued and is effective for
fiscal years beginning after November 15, 2007. SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. Management is currently evaluating the impact, if any,
the adoption of SFAS 157 will have on the Fund's financial statements.
3. Investment Transactions. For the six months ended December 31, 2006,
purchases and proceeds from sales or maturities of short-term obligations
(including securities purchased subject to repurchase agreements) were
$3,440,925,743 and $3,454,884,044, 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 six months ended December 31, 2006, management fees for the Fund were
$454,554 (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 Reich & Tang. IXIS Advisors
and Reich & Tang are wholly owned subsidiaries of IXIS Asset Management US
Group, L.P. ("IXIS US Group"), which is part of IXIS Asset Management Group, an
International Asset Management Group based in Paris, France. Certain officers
and directors of IXIS Advisors are also officers or Trustees of the Fund.
b. Administrative Fees. 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. IXIS Advisors is a wholly owned
subsidiary of IXIS US Group.
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, 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.
For the six months ended December 31, 2006, the Fund paid $78,071 to IXIS
Advisors for administrative fees.
c. 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.
d. 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 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.
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.
14
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2006 (Unaudited)
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, 2006 June 30, 2006
----------------- -------------
Class A
Issued from the sale of shares 191,897,709 381,616,552
Issued in connection with the reinvestment of distributions 5,431,667 9,006,881
----------------- -------------
197,329,376 390,623,433
Redeemed (203,275,507) (451,796,430)
----------------- -------------
Net change (5,946,131) (61,172,997)
----------------- -------------
Class B
Issued from the sale of shares 3,034,432 8,462,489
Issued in connection with the reinvestment of distributions 429,396 684,466
----------------- -------------
3,463,828 9,146,955
Redeemed (5,672,648) (11,196,687)
----------------- -------------
Net change (2,208,820) (2,049,732)
----------------- -------------
Class C
Issued from the sale of shares 500,188 1,784,221
Issued in connection with the reinvestment of distributions 43,420 58,325
----------------- -------------
543,608 1,842,546
Redeemed (815,160) (1,503,911)
----------------- -------------
Net change (271,552) 338,635
----------------- -------------
Increase (decrease) from capital share transactions (8,426,503) (62,884,094)
================= =============
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 Rule 30a-2(a) under the Investment Company Act of
1940 [17 CFR 270.30a-(2)], filed herewith as exhibits (a)(2)(1) and
(a)(2)(2)
(a)(3) Not applicable.
(a) Certifications 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 and Chief Executive
Officer
Date: February 26, 2007
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 26, 2007
By: /s/ Michael C. Kardok
---------------------------------
Name: Michael C. Kardok
Title: Treasurer
Date: February 26, 2007