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
Natixis 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.
Natixis Distributors, L.P.
399 Boylston Street
Boston, Massachusetts 02116
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(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 449-2810
Date of fiscal year end: June 30
Date of reporting period: June 30, 2007
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 OF NATIXIS FUNDS] ANNUAL REPORT
June 30, 2007
Natixis Cash Management Trust - Money Market Series
(Formerly IXIS Cash Management Trust - Money Market Series)
Reich & Tang Asset Management
TABLE OF CONTENTS
Management Discussion and
Performance................... page 1
Portfolio of Investments...... page 8
Financial Statements.......... page 10
NATIXIS 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
(See Special Note on page 2)
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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 12 months ended June 30, 2007, Natixis Cash Management Trust -- Money
Market Series (formerly IXIS Cash Management Trust -- Money Market Series)
maintained a constant price of $1.00 per share and provided a total return of
4.79% based on the net asset value of Class A shares and $0.0469 per share in
reinvested dividends. The fund's seven-day SEC yield at the end of the period
was 5.22%.
FED HOLDS RATES STEADY
During the months leading up to June 2006, the Federal Reserve Board completed
an unprecedented series of 17 consecutive rate hikes in increments of 0.25%.
However, since then Fed officials have neither raised nor lowered the federal
funds rate (the rate banks charge one another on overnight loans). The rate
remained at 5.25% throughout the fund's fiscal year.
The federal funds rate is critical to money market investors -- and to the U.S.
economy as a whole -- because it influences yields on money market securities,
as well as borrowing costs for consumers, homeowners, corporations and
municipalities. Typically, the Fed adjusts interest rates up or down in an
effort to keep the economy moving at a healthy pace, raising interest rates to
slow growth if inflation appears to be a threat, and lowering rates if economic
activity appears too slow. Despite dramatically higher energy prices (a
potentially inflationary trend), mounting defaults on subprime mortgage loans
and a slump in the housing market, the U.S. economy grew at a moderate pace
during the fund's fiscal year, slowing only slightly from 2006.
At its meeting in June of 2007, the Fed once again decided to leave interest
rates untouched, believing that the slower economy would help to contain
inflation. This decision was hailed by some but disappointed those who had been
hoping for a rate cut. Although the Fed's policy makers observed improvements
in inflation, they were not ready to shift to a new policy.
FUND'S AVERAGE MATURITY REMAINED IN NEUTRAL
Our strategy remained consistent throughout the fiscal year ended June 30,
2007. We maintained the fund's average maturity in the one- to three-month
range, which is regarded as a "neutral" strategy -- neither defensive nor
aggressive. When we believe the time is right, we will extend the average
maturity to capture higher rates. Our goal is to maintain stability while
generating as much current income as possible, consistent with the fund's
investment objective. At the same time, we strive to maintain flexibility in
the portfolio by focusing on shorter-term securities so we can respond quickly
to changes in interest rates.
At the start of the fund's fiscal year in July 2006, the fund's average
maturity stood at 46 days. By the mid point in the fiscal year, at the end of
December, the average maturity was 43 days, and as of June 30, 2007, it was 39
days.
COMMERCIAL PAPER REMAINS FOCUS OF PORTFOLIO
Commercial paper typically comprises the bulk of the fund's portfolio. The 12
months ended June 30, 2007 was no exception. These securities -- issued by
companies rather than the U.S. government or its agencies -- tend to offer
higher yields than Treasury securities and other types of money market
instruments, with 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 28% of the fund's total assets.
Yields on variable- and floating-rate securities rise and fall with day-to-day
fluctuations in interest rates caused by market sentiment; if short-term rates
edge upward, so too does the yield on the these securities. Although rates
remained relatively steady, we felt it was important to maintain a position in
these securities in anticipation of possible future rate hikes.
1
NATIXIS CASH MANAGEMENT TRUST -- MONEY MARKET SERIES
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No federal government or agency securities were in the portfolio as of June 30,
2007. We tend to increase the fund's holdings in these top-quality issues
during periods of economic uncertainty because they provide an extra measure of
safety, although their yield is not as high as commercial paper. Because the
economy appeared to be relatively healthy, we felt it was appropriate to focus
on higher-yielding instruments.
FED'S NEXT MOVE MAY BE TOO CLOSE TO CALL
Given the changing economic data, many financial observers continue to debate
whether the next move from Fed officials may be a rate hike or a cut. The Fed
could choose to move in either direction, depending on economic data and their
outlook for inflation.
Moreover, when the Fed met on August 7, statistics on the economy's
second-quarter performance had not yet been finalized. The Fed decided to take
no action at that meeting and many observers now believe they are likely to
postpone any decision to change rates until their meeting on September 18, at
the earliest.
We expect rates to remain unchanged at least through the end of the summer, and
perhaps into late fall. Accordingly, we will continue to pursue the strategy we
had in place throughout the 12 months ended June 30, 2007. We will monitor
economic and market data closely, keeping average maturity on the shorter side
to generate income without sacrificing flexibility, so we can move quickly into
longer-term, higher-yielding issues when opportunities arise.
Special Note: Effective June 30, 2007, Molly Flewharty retired after more than
30 years as a manager of money market portfolios at Reich & Tang. Effective
July 1, 2007, Robert Rickard, Senior Vice President at Reich & Tang, became
portfolio manager of Natixis Cash Management Trust -- Money Market Series.
Annualized Seven-Day Yield -- June 30, 2007
Class A, B & C 5.22%
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, 2007
1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION
CLASS A (Inception 7/10/78)
Net Asset Value 4.79% 2.11% 3.22% --
CLASS B (Inception 9/13/93)
Net Asset Value 4.79% 2.11% 3.22% --
CLASS C (Inception 3/1/98)
Net Asset Value 4.79% 2.11% -- 3.10%
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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.
Expense Ratios
Expense Ratios as Stated in the Most Recent Prospectus
Share Class Gross Expense Ratio* Net Expense Ratio**
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A 0.71% 0.65%
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B 0.71% 0.65%
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C 0.71% 0.65%
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* Before waivers and reimbursements.
**After waivers and reimbursements. Expense reductions are contractual and are
set to expire 8/31/08.
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 Natixis Fund, contact your financial
professional or call Natixis 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 Natixis Funds at 800-225-5478; on the
fund's website at www.funds.natixis.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, 2007 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 January 1, 2007 through June 30, 2007. 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.
NATIXIS CASH MANAGEMENT TRUST - BEGINNING ACCOUNT VALUE ENDING ACCOUNT VALUE EXPENSES PAID DURING PERIOD*
MONEY MARKET SERIES 1/1/2007 6/30/2007 1/1/07- 6/30/07
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CLASS A
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Actual $1,000.00 $1,023.70 $3.16
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Hypothetical (5% return before expenses) $1,000.00 $1,021.67 $3.16
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CLASS B
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Actual $1,000.00 $1,023.70 $3.16
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Hypothetical (5% return before expenses) $1,000.00 $1,021.67 $3.16
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CLASS C
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Actual $1,000.00 $1,023.70 $3.16
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Hypothetical (5% return before expenses) $1,000.00 $1,021.67 $3.16
*Expenses are equal to the fund's annualized expense ratio of 0.63% 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
BOARD APPROVAL OF THE EXISTING ADVISORY AND SUBADVISORY AGREEMENTS
The Board of Trustees, including the Independent Trustees, considers matters
bearing on the Fund's advisory and subadvisory 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, typically for an additional
one-year period. After the Committee has made its recommendation, the full
Board, including the Independent Trustees, determines whether to approve the
continuation of the Agreements.
In connection with these meetings, the Trustees receive materials that the
Fund's investment advisers believe to be reasonably necessary for the Trustees
to evaluate the Agreements. These materials generally include, among other
items, (i) information on the investment performance of the Fund and the
performance of peer groups of funds, (ii) information on the Fund's advisory
and subadvisory 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 subadviser (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.
In addition to the materials requested by the Trustees in connection with the
annual consideration of the continuation of the Agreements, the Trustees
receive materials in advance of each regular quarterly meeting of the Board of
Trustees that provide detailed information about the Fund's investment
performance and the fees charged to the Fund for advisory and other services.
This information generally includes, among other things, an internal
performance rating for the Fund based on agreed-upon criteria, graphs showing
performance and fee differentials against the Fund's peer group and total
return information for various periods. The portfolio manager of the Fund or
other representatives of the adviser make periodic presentations to the
Contract Review and Governance Committee and/or the full Board of Trustees, and
if the Fund is identified as presenting possible performance concerns it may be
subject to more frequent board presentations and reviews.
The Board of Trustees most recently approved the continuation of the Agreements
at their meeting held in June, 2007. 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 considered the need for the
Advisers to offer competitive compensation in order to attract and retain
capable personnel.
The Trustees considered the advisory services provided by the Advisers to the
Fund, including the monitoring and oversight services provided by Natixis
Advisors. They also considered the administrative services provided by Natixis
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.
5
BOARD APPROVAL OF THE EXISTING ADVISORY AND SUBADVISORY 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 a peer group 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 and other relevant factors
supported the renewal of the Agreements. These factors included the following:
(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 each Adviser's 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
subadvisory 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
subadvisory fees, the Trustees also took into account the demands, complexity
and quality of the investment management of the Fund. The Trustees considered
that over the past several years, management had made recommendations regarding
reductions in advisory fee rates. The Trustees noted that the Fund had a total
expense ratio that was above the median of a peer group of funds. The Trustees
considered the circumstances that accounted for such relatively higher
expenses. The Trustees noted that the relatively higher expense ratios resulted
to a significant extent from relatively higher expenses relating to items other
than advisory fees. The Trustees also noted that management was proposing a new
expense cap for the Fund, effective September 1, 2007.
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. They also reviewed information provided by management about the
effect of distribution costs and Fund growth on Adviser profitability,
including information regarding resources spent on distribution activities and
the increase in net sales for the family of funds. 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.
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 its 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.
6
BOARD APPROVAL OF THE EXISTING ADVISORY AND SUBADVISORY AGREEMENTS
After reviewing these and related factors, the Trustees considered, within the
context of their overall conclusions regarding each of the Agreements, that the
extent to which economies of scale were shared with the Fund supported the
renewal of the Agreements.
The Trustees also considered other factors, which included but were not limited
to the following:
.. whether the Fund has operated in accordance with its investment objective
and the Fund's record of compliance with its investment restrictions, and
the compliance programs of the Fund and the Advisers. They also considered
the compliance-related resources the Advisers and their affiliates were
providing to the Fund.
.. the nature, quality, cost and extent of administrative and shareholder
services performed by the Advisers and their affiliates, both under the
Agreements and under separate agreements covering administrative services.
.. so-called "fallout benefits" to the Advisers, such as the engagement of
affiliates of the Advisers to provide distribution and administrative
services to the Fund. The Trustees also considered the fact that Natixis
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 subadvisory agreements should
be continued through June 30, 2008.
7
NATIXIS CASH MANAGEMENT TRUST -- MONEY MARKET SERIES*
PORTFOLIO OF INVESTMENTS
Investments as of June 30, 2007
Principal
Amount Description Value (+)
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Commercial Paper -- 50.1% of Net Assets
Asset-Backed -- 8.8%
$ 11,000,000 Chesham Finance LLC,
5.400%, 7/02/2007(b) $ 10,998,350
10,186,000 Triple-A One Funding Corp., (Credit Support: MBIA Insured),
5.280%, 7/05/2007(b) 10,180,024
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21,178,374
---------------
Banking -- 14.3%
5,000,000 Yorkshire Building Society,
5.200%, 7/18/2007 4,987,722
10,000,000 Britannia Building Society,
5.240%, 8/02/2007 9,953,422
10,000,000 Anglo Irish Bank Corp. PLC,
5.230%, 12/17/2007(b) 9,754,481
10,000,000 ICICI Bank Ltd., (Credit Support: Fortis Bank)
5.120%, 2/01/2008 9,694,222
---------------
34,389,847
---------------
Diversified Financial Services -- 3.8%
2,000,000 Fountain Square Commercial Funding Corp.,
5.370%, 7/02/2007(b) 1,999,702
2,263,000 Yorktown Capital LLC,
5.280%, 7/05/2007(b) 2,261,672
5,000,000 Fountain Square Commercial Funding Corp.,
5.270%, 7/11/2007(b) 4,992,680
---------------
9,254,054
---------------
Financial -- 4.0%
2,600,000 Danske Corp.,
5.260%, 7/10/2007 2,596,581
7,000,000 Danske Corp.,
5.240%, 8/20/2007 6,949,056
---------------
9,545,637
---------------
Education -- 5.0%
12,000,000 Johns Hopkins University,
5.305%, 7/10/2007 12,000,000
---------------
Health Care - Services -- 4.2%
10,000,000 Dean Health Systems, Inc., (Credit Support: Marshall & Ilsley),
5.280%, 7/12/2007 9,983,867
---------------
Special Purpose -- 7.5%
4,088,000 Old Slip Funding LLC,
5.290%, 7/09/2007(b) 4,083,194
1,972,000 Greyhawk Funding LLC,
5.280%, 7/11/2007(b) 1,969,108
7,000,000 Old Slip Funding LLC,
5.310%, 7/18/2007(b) 6,982,447
5,000,000 Greyhawk Funding LLC,
5.265%, 9/17/2007(b) 4,942,963
---------------
17,977,712
---------------
Trade Receivables -- 2.5%
6,000,000 Govco LLC,
5.240%, 8/21/2007(b) 5,955,460
---------------
Total Commercial Paper (Identified Cost $120,284,951) 120,284,951
---------------
Certificates of Deposit -- 27.8%
5,000,000 Norddeutsche Landesbank Girozentrale,
5.333%, 7/16/2007 5,000,005
11,700,000 Wachovia Bank,
5.435%, 7/20/2007 11,700,545
Principal
Amount Description Value (+)
- -----------------------------------------------------------------------------------------------
Certificates of Deposit --continued
$ 10,000,000 HBOS Treasury Services PLC,
5.410%, 8/24/2007 $ 9,998,087
5,000,000 Calyon North America, Inc.,
5.320%, 9/05/2007(c) 5,000,000
5,000,000 Svenska Handelsbanken,
5.365%, 10/26/2007 4,999,615
5,000,000 Royal Bank of Canada,
5.400%, 11/09/2007(d) 5,000,000
5,000,000 Landesbank Baden Wurtemburg,
5.325%, 11/19/2007 5,000,000
5,000,000 Canadian Imperial Bank of Commerce,
5.380%, 11/26/2007(c) 4,999,805
5,000,000 HSH Nordbank AG,
5.290%, 3/13/2008(c) 4,999,655
10,000,000 Bank of Montreal,
5.400%, 6/17/2008(c) 10,000,000
---------------
Total Certificates of Deposit (Identified Cost $66,697,712) 66,697,712
---------------
Medium Term Notes -- 4.2%
Broker/Dealer -- 2.1%
5,000,000 Merrill Lynch & Co., Inc.,
5.400%, 7/03/2008(c)(e) 5,001,825
---------------
Financial -- 2.1%
5,000,000 General Electric Capital Corp.,
5.445%, 10/17/2007(c)(e) 5,000,000
---------------
Total Medium Term Notes (Identified Cost $10,001,825) 10,001,825
---------------
Variable Rate Demand Notes -- 14.0%
Financial -- 1.3%
3,130,000 MOB Management One LLC, (Credit Support: Columbus Bank &
Trust),
5.650%, 12/01/2031(f) 3,130,000
---------------
Municipal -- 8.3%
5,000,000 Chicago, IL, Series B, (Credit Support: FGIC Insured),
5.320%, 1/01/2019(f) 5,000,000
10,000,000 Colorado, Southern Ute Indian Tribe Reservation,
5.430%, 1/01/2027(f) 10,000,000
5,000,000 Connecticut State Housing Finance Authority,
(Credit Support: AMBAC Indemnity),
5.350%, 5/15/2033(f) 5,000,000
---------------
20,000,000
---------------
Real Estate -- 4.2%
139,000 Sheffield Realty LLC, (Credit Support: AmSouth Bank),
5.400%, 4/01/2012(f) 139,000
810,000 Shayeson-Huff Properties LLC, (Credit Support: US Bank),
5.480%, 11/01/2016(f) 810,000
1,750,000 Jobs Co. LLC (The), (Credit Support: First Commercial),
5.420%, 2/01/2022(f) 1,750,000
641,000 Pine Tree Country Club, (Credit Support: AmSouth Bank),
5.390%, 8/01/2023(f) 641,000
4,295,000 Storage World, LLC, (Credit Support: Regions Bank),
5.350%, 12/01/2024(f) 4,295,000
2,515,000 J&M, LLC, (Credit Support: First Commercial),
5.520%, 10/01/2026(f) 2,515,000
---------------
10,150,000
---------------
See accompanying notes to financial statements.
8
NATIXIS CASH MANAGEMENT TRUST -- MONEY MARKET SERIES*
PORTFOLIO OF INVESTMENTS (continued)
Investments as of June 30, 2007
Principal
Amount Description Value (+)
- --------------------------------------------------------------------------------------------------
Special Purpose -- 0.2%
$ 445,000 Tanner & Guin LLC, (Credit Support: AmSouth Bank),
5.400%, 9/01/2029(f) $ 445,000
---------------
Total Variable Rate Demand Notes (Identified Cost $33,725,000) 33,725,000
---------------
Time Deposit -- 4.0%
9,600,000 National Bank of Canada,
5.400%, 7/02/2007 9,600,000
---------------
Total Time Deposit (Identified Cost $9,600,000) 9,600,000
---------------
Total Investments -- 100.1% (Identified Cost $240,309,488)(a) 240,309,488
Other assets less liabilities--(0.1)% (127,169)
---------------
Total Net Assets -- 100% $ 240,182,319
===============
* Formerly IXIS Cash Management Trust -- Money Market Series
(see Note 6 of Notes to Financial Statements).
(+) See Note 2a of Notes to Financial Statements.
(a) The aggregate cost for federal income tax purposes was
$240,309,488.
(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 June 30, 2007, these securities amounted to
$64,120,081 which represents 26.7% of net assets.
(c) Floating rate note. Rate shown is as of June 30, 2007.
(d) This security is callable prior to maturity on specific dates.
(e) Illiquid security. At June 30, 2007, the value of these securities
amounted to $10,001,825 or 4.2% of net assets.
(f) 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.
AMBAC American Municipal Bond Assurance Corp.
FGIC Financial Guarantee Insurance Company
MBIA Municipal Bond Investors Assurance
Holdings at June 30, 2007 as a Percentage of Net Assets (unaudited)
Certificates of Deposit 27.8%
Banking 14.3
Asset-Backed 8.8
Municipal 8.3
Special Purpose 7.7
Financial 7.4
Education 5.0
Real Estate 4.2
Health Care -- Services 4.2
Time Deposit 4.0
Diversified Financial Services 3.8
Trade Receivables 2.5
Broker/Dealer 2.1
See accompanying notes to financial statements.
9
STATEMENT OF ASSETS & LIABILITIES
June 30, 2007
Natixis Cash
Management Trust*
---------------------
---------------------
ASSETS
Investments, at amortized cost $ 240,309,488
Cash 62,276
Receivable for Fund shares sold 542,956
Interest receivable 1,686,968
---------------------
TOTAL ASSETS 242,601,688
---------------------
LIABILITIES
Payable for Fund shares redeemed 1,846,150
Dividends payable 27,132
Management fees payable (Note 4) 66,684
Deferred Trustees' fees (Note 4) 310,093
Administrative fees payable (Note 4) 11,540
Other accounts payable and accrued
expenses 157,770
---------------------
TOTAL LIABILITIES 2,419,369
---------------------
NET ASSETS $ 240,182,319
=====================
NET ASSETS CONSIST OF:
Paid-in capital $ 240,152,757
Undistributed net investment income 29,562
---------------------
NET ASSETS $ 240,182,319
=====================
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 $ 221,142,828
=====================
Shares of beneficial interest 221,112,017
=====================
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 $ 17,126,949
=====================
Shares of beneficial interest 17,128,718
=====================
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 $ 1,912,542
=====================
Shares of beneficial interest 1,912,237
=====================
Net asset value and offering price
per share $ 1.00
=====================
* Formerly IXIS Cash Management Trust - Money Market Series (See Note 6 of
Notes to Financial Statements).
See accompanying notes to financial statements.
10
STATEMENT OF OPERATIONS
For the Year Ended June 30, 2007
Natixis Cash
Management Trust*
---------------------
---------------------
NET INVESTMENT INCOME
Interest $ 13,692,228
---------------------
Expenses
Management fees (Note 4) 892,072
Trustees' fees and expenses (Note 4) 62,147
Administrative fees (Note 4) 142,420
Custodian fees and expenses 37,357
Transfer agent fees and expenses - Class A 483,174
Transfer agent fees and expenses - Class B 38,025
Transfer agent fees and expenses - Class C 3,980
Audit fees 23,150
Legal fees 9,697
Shareholder reporting expenses 52,420
Registration fees 54,288
Miscellaneous expenses 18,129
---------------------
Total expenses 1,816,859
Less expense offset (a) (95,841)
---------------------
Net expenses 1,721,018
---------------------
Net investment income 11,971,210
---------------------
REALIZED GAIN ON INVESTMENTS 372
---------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 11,971,582
=====================
* Formerly IXIS Cash Management Trust - Money Market Series (See Note 6 of
Notes to Financial Statements).
(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.
11
STATEMENT OF CHANGES IN NET ASSETS
Natixis Cash Management Trust*
--------------------------------------------
Year Ended Year Ended
June 30, 2007 June 30, 2006
--------------------- ---------------------
FROM OPERATIONS:
Net investment income $ 11,971,210 $ 9,950,902
Net realized gain on investments 372 3,276
--------------------- ---------------------
Net increase in net assets resulting from
operations 11,971,582 9,954,178
--------------------- ---------------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A (11,014,765) (9,167,041)
Class B (865,824) (720,581)
Class C (90,629) (63,275)
--------------------- ---------------------
Total distributions (11,971,218) (9,950,897)
--------------------- ---------------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5):
Proceeds from sale of shares 397,344,436 391,863,262
Net asset value of shares issued in
connection with the reinvestment of
distributions 11,707,712 9,749,672
Cost of shares redeemed (424,686,319) (464,497,028)
--------------------- ---------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
SHARE TRANSACTIONS (15,634,171) (62,884,094)
--------------------- ---------------------
Net decrease in net assets (15,633,807) (62,880,813)
--------------------- ---------------------
NET ASSETS
Beginning of the year 255,816,126 318,696,939
--------------------- ---------------------
End of the year $ 240,182,319 $ 255,816,126
===================== =====================
UNDISTRIBUTED NET INVESTMENT INCOME $ 29,562 $ 26,461
===================== =====================
* Formerly IXIS Cash Management Trust - Money Market Series (See Note 6 of
Notes to Financial Statements).
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 Total from from
of Net investment investment net investment Total
year income operations income distributions
---------- -------------- ---------- -------------- -------------
Class A, B, C
6/30/2007 $ 1.00 $ 0.0469 $ 0.0469 $ (0.0469) $ (0.0469)
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)
(a)Represents expenses net of 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.
13
Ratios to average net assets:
-------------------------------------
Net assets,
Net asset end of Gross Net
value, end Total return year expenses expenses Net investment
of year (%) (000's) (%) (%) income (%)
---------- ------------ ----------- --------- --------- --------------
$ 1.00 4.8 $ 240,182 0.71 0.67(a) 4.69
1.00 3.6 255,816 0.82 N/A 3.45
1.00 1.3 318,697 1.02 N/A 1.24
1.00 0.2 368,546 0.94 N/A 0.21
1.00 0.8 458,957 0.88 N/A 0.77
14
NOTES TO FINANCIAL STATEMENTS
June 30, 2007
1. Organization. Natixis Cash Management Trust -- Money Market Series (formerly
IXIS Cash Management Trust -- Money Market Series) (the "Fund") is the only
series of Natixis Cash Management Trust (formerly 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. On June 1,
2007, the Board of Trustees of the Trust approved the termination of offering
of Class B shares. No new accounts will be opened in Class B shares after
July 30, 2007. No additional investments into Class B shares may be made after
October 12, 2007. Existing Class B shares may continue to reinvest dividends
into Class B shares and exchange their Class B shares for Class B shares of
other Natixis Funds subject to existing exchange privileges as described in the
Prospectus. The classes of the Fund enable shareholders of another Natixis 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 Natixis 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.
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 beginning after December 15, 2007.
Notwithstanding the projected regulatory implementation date of December 31,
2007 for the Fund, Management has already implemented FIN 48 and has performed
an analysis of the Fund's tax positions taken or that will be taken on federal
and state tax returns that remain subject to examinations (tax years ended June
30, 2004 -- 2007) in connection with the adoption of FIN 48 and has concluded
that no provision for income tax is required. Accordingly, there is no impact
on the Fund's net assets at June 30, 2007 or results of operations for the year
then ended. Additionally, Fund Management is not aware of any events that are
reasonably possible to occur in the next twelve months that would result in the
amounts of any unrecognized tax benefits significantly increasing or decreasing
for the Fund.
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, 2007 and June 30, 2006, distributions of
$11,971,218 and $9,950,897, respectively, were paid to shareholders from
ordinary income on a tax basis.
15
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2007
At June 30, 2007, the Fund had undistributed ordinary income on a tax basis of
$366,787. 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 and dividends payable.
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 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 Fund that have not yet occurred. However, based on experience, the
Fund expects the risk of loss to be remote.
h. New Accounting Pronouncements. In September, 2006, Statement of Financial
Accounting Standards No. 157, Fair Value Measurements ("FAS 157"), was issued
and is effective for fiscal years beginning after November 15, 2007. FAS 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 FAS 157 will have on the Fund's
financial statements.
3. Investment Transactions. For the year ended June 30, 2007, purchases and
proceeds from sales or maturities of short-term obligations (including
securities purchased subject to repurchase agreements) were $8,080,304,169 and
$8,101,951,214, respectively.
4. Management Fees and Other Transactions with Affiliates.
a. Management Fees. Natixis Asset Management Advisors, L.P. ("Natixis
Advisors") (formerly IXIS Asset Management Advisors, L.P.) 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, 2007, management fees for the Fund were $892,072
(0.35% of average daily net assets).
Natixis Advisors has entered into a subadvisory agreement on behalf of the Fund
with Reich & Tang Asset Management, LLC ("Reich & Tang"). Payments to Natixis
Advisors are reduced in the amount of payments to Reich & Tang. Natixis
Advisors and Reich & Tang are wholly-owned subsidiaries of Natixis Global Asset
Management, L.P. ("Natixis US") (formerly IXIS Asset Management US Group,
L.P.), which is part of Natixis Global Asset Management (formerly IXIS Asset
Management Group), an international asset management group based in Paris,
France. Certain officers and directors of Natixis Advisors are also officers or
Trustees of the Fund.
Effective September 1, 2007, Natixis Advisors has given a binding undertaking
to the Fund to defer its management fees and/or reimburse certain expenses
associated with the Fund to limit its operating expenses. This undertaking is
in effect until August 31, 2008 and will be reevaluated on an annual basis. The
expense limits as a percentage of average daily net assets under the expense
limitation agreements are 0.65% for Class A, Class B and Class C shares of the
Fund.
b. Administrative Expense. Natixis Advisors provides certain administrative
services to the Fund and subcontracts with State Street Bank and Trust Company
("State Street Bank") to serve as subadministrator. Natixis Advisors is a
wholly owned subsidiary of Natixis US.
Pursuant to an agreement among the Trust, Natixis Funds Trust I (formerly IXIS
Advisor Funds Trust I), Natixis Funds Trust II (formerly IXIS Advisor Funds
Trust II), Natixis Funds Trust III (formerly IXIS Advisor Funds Trust III),
Natixis Funds Trust IV (formerly IXIS Advisor Funds Trust IV) ("Natixis Funds
Trusts"), Loomis Sayles Funds I, Loomis Sayles Funds II ("Loomis Sayles Funds
Trusts") and Natixis Advisors (the "Administrative Services Agreement"), the
Fund pays Natixis 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 Natixis 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 Natixis Funds Trusts and Loomis Sayles
Funds Trusts of $5 million, which is reevaluated on an annual basis.
Effective July 1, 2007, pursuant to an amendment to the Administrative Services
Agreement among the Trust, Natixis Funds Trusts, Loomis Sayles Funds Trusts and
Natixis Advisors, the Fund will pay Natixis 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
16
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2007
Natixis Funds Trusts and Loomis Sayles Funds Trusts, 0.0625% of the next $5
billion, 0.0500% of the next $20 billion, and 0.0450% of such assets in excess
of $30 billion, subject to an annual aggregate minimum fee for the Natixis
Funds Trusts and Loomis Sayles Funds Trusts of $5 million, which is reevaluated
on an annual basis.
For the year ended June 30, 2007, the Fund paid $142,420 to Natixis Advisors
for administrative fees.
c. Distribution Agreement. Natixis Distributors, L.P. ("Natixis Distributors")
(formerly IXIS Asset Management Distributors, L.P.), a wholly-owned subsidiary
of Natixis US, 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 Natixis
Advisors, Natixis Distributors, Natixis US 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 Natixis 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 Natixis 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.
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, 2007 June 30, 2006
---------------- ----------------
Class A
Issued from the sale of shares 390,333,502 381,616,552
Issued in connection with the reinvestment of distributions 10,797,329 9,006,881
---------------- ----------------
401,130,831 390,623,433
Redeemed (413,258,211) (451,796,430)
---------------- ----------------
Net change (12,127,380) (61,172,997)
---------------- ----------------
Class B
Issued from the sale of shares 5,506,206 8,462,489
Issued in connection with the reinvestment of distributions 824,826 684,466
---------------- ----------------
6,331,032 9,146,955
Redeemed (9,629,351) (11,196,687)
---------------- ----------------
Net change (3,298,319) (2,049,732)
---------------- ----------------
Class C
Issued from the sale of shares 1,504,728 1,784,221
Issued in connection with the reinvestment of distributions 85,557 58,325
---------------- ----------------
1,590,285 1,842,546
Redeemed (1,798,757) (1,503,911)
---------------- ----------------
Net change (208,472) 338,635
---------------- ----------------
Increase (decrease) from capital share transactions (15,634,171) (62,884,094)
================ ================
6. Subsequent Events. Effective August 1, 2007, the name of the investment
adviser to the Fund changed from IXIS Asset Management Advisors, L.P. to
Natixis Asset Management Advisors, L.P. and the name of the Fund's distributor
changed from IXIS Asset Management Distributors, L.P. to Natixis Distributors,
L.P.
Effective August 6, 2007, IXIS Advisor Cash Management Trust was renamed
Natixis Cash Management Trust and the name of the Fund changed from IXIS Cash
Management Trust -- Money Market Series to Natixis Cash Management Trust --
Money Market Series.
17
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Trustees of Natixis Cash Management Trust (formerly IXIS Advisor Cash
Management Trust) and Shareholders of Natixis Cash Management Trust -- Money
Market Series (formerly 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 Natixis Cash Management Trust --
Money Market Series (the "Fund"), a series constituting Natixis Cash Management
Trust, at June 30, 2007, 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, 2007 by correspondence with the custodian, provide a
reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
August 15, 2007
18
TRUSTEE AND OFFICER INFORMATION
The table below provides certain information regarding the Trustees and
officers of Natixis 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 Natixis 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 37
(3/23/40) since 1984 Director of the Belfer Center Director, Taubman Centers,
Contract Review and for Science and 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 37
(11/13/56) since 2005 Officer, Harvard Pilgrim None
Contract Review and Health Care (health plan)
Governance Committee
Member
Edward A. Benjamin Trustee, Retired 37
(5/30/38) since 2003 None
Chairman of the Contract
Review and Governance
Committee
Daniel M. Cain Trustee, President and Chief Executive 37
(2/24/45) since 1996 Officer, Cain Brothers & Director, Sheridan Healthcare
Chairman of the Audit Company, Incorporated Inc. (physician practice
Committee (investment banking) management); Trustee,
Lexington Strategic Asset
Corporation (realty
investment trust)
Richard Darman Trustee, Partner, The Carlyle Group 37
(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)
Jonathan P. Mason Trustee, Chief Financial Officer, Cabot 37
(8/30/58) since 2007 Corp. (specialty chemicals); None
Audit Committee Member formerly, Vice President and
Treasurer, International Paper
Company; formerly, Chief
Financial Officer, Carter Holt
Harvey (forest products)
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
- ---------------------- -------------------------- --------------------- ----------------------------
Sandra O. Moose Chairperson of the Board of President, Strategic Advisory 37
(2/17/42) Trustees, since November Services (management Director, Verizon
2005 consulting); formerly, Senior Communications;
Trustee, Vice President and Director, Director, Rohm and Haas
since 1982 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)
Cynthia L. Walker Trustee, Executive Dean for 37
(7/25/56) since 2005 Administration (formerly, Dean None
Audit Committee Member for Finance and CFO), Harvard
Medical School
INTERESTED TRUSTEES
Robert J. Blanding/1/ Trustee, President, Chairman, Director, 37
(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 - Loomis Sayles Funds II
John T. Hailer/2/ Trustee, President and Chief Executive 37
(11/23/60) since 2000 Officer, Natixis Asset None
President and Chief Management Advisors, L.P.,
Executive Officer Natixis Distributors, L.P. and
Natixis Global Associates, Inc.;
Executive Vice President,
Loomis Sayles Funds I;
President, Loomis Sayles Funds
II President and Chief Executive
Officer, Natixis Funds Trust I,
Natixis Funds Trust II, Natixis
Funds Trust III and Natixis
Funds Trust IV
* Each Trustee serves until retirement, resignation or removal from the Board
of Trustees. The current retirement age is 72. 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 Trust. Previous positions during the past five years with Natixis
Distributors, L.P. (the "Distributor"), Natixis Asset Management Advisors,
L.P. ("Natixis Advisors"), 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 Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds
Trust III, Natixis Funds Trust IV, Loomis Sayles Funds I, Loomis Sayles
Funds II and the Trust (together the "Natixis Funds and Loomis Sayles Funds
Trusts"). The number of portfolios overseen does not include AEW Real Estate
Income Fund, which liquidated on April 13, 2007.
/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 Natixis Distribution Corporation ("Natixis
Distribution Corporation"); and President and Chief Executive Officer of
Natixis Advisors, Natixis Global Associates, Inc. and the Distributor.
20
TRUSTEE AND OFFICER INFORMATION
OFFICERS OF THE TRUST
Position(s) Held with the
Trust Term of Office and Principal Occupation(s)
Name and Date of Birth Length of Time Served* During Past 5 Years**
---------------------- ---------------------- ---------------------
Coleen Downs Dinneen Secretary, Clerk and Chief Legal Senior Vice President, General
(12/16/60) Officer Counsel, Secretary and Clerk
since September 2004 (formerly, Deputy General Counsel,
Assistant Secretary and Assistant
Clerk), Natixis Distribution
Corporation, Natixis Distributors,
L.P. and Natixis Asset
Management Advisors, L.P.
Russell L. Kane Chief Compliance Officer, since May Chief Compliance Officer for
(7/23/69) 2006; Anti-Money Laundering Officer Mutual Funds, Senior Vice
since April 2007; and Assistant President, Deputy General Counsel,
Secretary since June 2004 Assistant Secretary and Assistant
Clerk, Natixis Distributors, L.P.
Natixis Distribution Corporation;
and Natixis Asset Management
Advisors, L.P.; formerly, Senior
Counsel, Columbia Management
Group.
Michael C. Kardok Treasurer, Principal Financial and Senior Vice President, Natixis Asset
(7/17/59) Accounting Officer Management Advisors, L.P. and
since October 2004 Natixis Distributors, L.P.; formerly,
Senior Director, PFPC Inc.
John E. Pelletier Chief Operating Officer Executive Vice President and Chief
(6/24/64) since September 2004 Operating Officer (formerly, Senior
Vice President, General Counsel,
Secretary and Clerk), Natixis
Distributors, L.P. and Natixis Asset
Management Advisors, L.P.;
Executive Vice President and Chief
Operating Officer (formerly, Senior
Vice President, General Counsel,
Secretary and Clerk), Natixis
Distribution Corporation.
* Each officer of the Trust serves for an indefinite term in accordance with
their current By-laws until the date his or her successor is elected and
qualified, or until he or she sooner dies, retires, is removed or becomes
disqualified.
** Each person listed above, except as noted, holds the same position(s) with
the Natixis Funds and Loomis Sayles Funds Trusts. Previous positions during
the past five years with the Distributor, Natixis Advisors or Loomis Sayles
are omitted, if not materially different from a Trustee's or officer's
current position with such entity.
21
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. Jonathan P. Mason 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/
--------------- ------------- ------------- -----------------
2006 2007 2006 2007 2006 2007 2006 2007
------- ------- ------ ---- ------ ------ ------ ----
Cash Management Trust $22,750 $28,950 $3,679 N/A $1,250 $1,657 $2,755 N/A
- --------
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.
Aggregate fees billed to the Registrant for non-audit services during 2006 and
2007 were $7,684 and $1,657, respectively.
Fees paid to Principal Accountant By Adviser and Control Affiliates.
The following table sets forth the non-audit services provided by the
Registrant's principal accountant to Natixis Asset Management Advisors, L.P.
and entities controlling, controlled by or under common control with Natixis
Asset Management Advisors, L.P. that provide ongoing services to the Registrant
("Control Affiliates") for the last two fiscal years.
Audit-related fees Tax fees All other fees
------------------ ---------------- --------------
2006 2007 2006 2007 2006 2007
--------- -------- ------- -------- -------- -----
Control Affiliates $67,250 $11,612 $93,550 $102,235 $45,800 N/A
Aggregate fees billed to Control Affiliates for non-audit services during 2006
and 2007 were $206,600 and $113,847, 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 Rule 30a-2(a) under the Investment
Company Act of 1940 (17 CFR 270.30a-2(a)), filed herewith as
exhibits (a)(2)(1) and (a)(2)(2), respectively.
(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.
Natixis Cash Management Trust
By: /s/ John T. Hailer
--------------------------------
Name: John T. Hailer
Title: President and Chief Executive Officer
Date: August 21, 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: August 21, 2007
By: /s/ Michael C. Kardok
--------------------------------
Name: Michael C. Kardok
Title: Treasurer
Date: August 21, 2007