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: 811-02819
NATIXIS CASH MANAGEMENT TRUST
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
399 BOYLSTON STREET, BOSTON, MASSACHUSETTS 02116
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
COLEEN DOWNS DINNEEN, ESQ.
NATIXIS DISTRIBUTORS, L.P.
399 BOYLSTON STREET
BOSTON, MASSACHUSETTS 02116
(NAME AND ADDRESS OF AGENT FOR SERVICE)
Registrant's telephone number, including area code: (617) 449-2810
Date of fiscal year end: June 30
Date of reporting period: December 31, 2007
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]
NATIXIS
FUNDS
SEMIANNUAL REPORT
December 31, 2007
Natixis Cash Management Trust - Money Market Series
Reich & Tang Asset Management
[GRAPHIC]
TABLE OF CONTENTS
Management Discussion and Performance ....................................page 1
Portfolio of Investments .................................................page 5
Financial Statements..................................................... page 7
NATIXIS CASH MANAGEMENT TRUST -- MONEY MARKET SERIES
PORTFOLIO PROFILE
Objective:
Seeks maximum current income consistent with preservation of capital and
liquidity
- --------------------------------------------------------------------------------
Strategy:
Invests primarily in high-quality, short-term, U.S. dollar-denominated money
market investments issued by U.S. and foreign issuers
- --------------------------------------------------------------------------------
Inception Date:
July 10, 1978
- --------------------------------------------------------------------------------
Symbols:
Class A NEMXX
Class B NMBXX
Class C NVCXX
- --------------------------------------------------------------------------------
Manager:
Robert Rickard,
Reich & Tang Asset Management
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
The subprime mortgage crisis and the ensuing credit crunch unsettled the U.S.
economy during the past six months. Investors worldwide became concerned about
a possible recession in the United States. In the fall, the Federal Reserve
Board responded with a series of interest rate cuts - the first since June 2003
- - designed to energize national economic growth.
For the six months ended December 31, 2007, Natixis Cash Management Trust -
Money Market Series maintained a constant value 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 4.46%.
FED CUTS RATES TO STABILIZE THE ECONOMY
Through its ability to raise and lower the federal funds rate (the interest
rate banks charge each other on overnight loans), the Fed is able to stimulate
or dampen the economy. Since the subprime mortgage crisis and resulting credit
tightening took hold in late July and early August, the Fed lowered the federal
funds rate three times, shaving a full percentage point off this key interest
rate. At the start of the fund's fiscal year in July, the federal funds rate
was 5.25%. By the end of December it was 4.25%.
The federal 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. For example, rates on car loans, mortgages
and consumer credit often rise and fall with this rate. In theory, when
interest rates are lower, both individuals and institutions are more likely to
borrow money to purchase homes and autos or finance corporate growth. By
lowering borrowing costs, the Fed hopes lending will pick up again and spending
will rise, preventing the economy from sliding into a recession.
AVERAGE MATURITY SHORTENED TO MAINTAIN LIQUIDITY
The first three months of the fund's fiscal period were dominated by fallout
from the subprime mortgage meltdown and subsequent credit crunch. As the market
and investors reacted to negative news, we shortened the fund's average
maturity to maintain liquidity. Over the next three months, as a degree of
optimism began to return to the market and credit worries eased somewhat, we
began to extend average maturity slightly to lock in higher yields in
anticipation of future rate cuts.
At the start of the fund's fiscal year in July, the fund's average maturity was
39 days. As of December 31, 2007, average maturity was 29 days.
MANAGERS FOCUS ON QUALITY AND SAFETY
Commercial paper typically comprises the bulk of the fund's portfolio. This was
the case during the six months ended December 31, 2007. These money market
securities - issued by companies rather than the U.S. government or its
agencies - tend to offer higher yields than other money market instruments,
with minimal additional risk, especially on the shorter end of the maturity
spectrum.
Given the unsettled investment climate, we took a conservative approach,
purchasing commercial paper issued only by large, multi-national banks and
leading domestic banks. Although commercial paper from these larger, more
established banks offered slightly lower yields than securities issued by
lower-rated banking institutions, we were reassured by the safety and quality
of the issuers.
Our position in variable-rate demand instruments and floating rate notes
dropped slightly during the period, from 28.6% of the portfolio at the start of
your fund's fiscal year in July, to 24.6% at the end of December. 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
decline, so too does the yield on these securities. As issues matured, we
directed assets to other types of money market securities in an effort to lock
in higher yields.
1
NATIXIS CASH MANAGEMENT TRUST -- MONEY MARKET SERIES
- --------------------------------------------------------------------------------
We also added to the fund's position in federal government and agency
securities as a defensive measure at the height of the subprime mortgage crisis
because of the extra measure of price stability they offer. The Fed's
subsequent easing succeeded in reassuring investors and we refocused our
efforts on commercial paper from larger, top-rated banking institutions to pick
up additional yield. The fund's position in government and agency securities
rose to a high of about 15% of assets during the period, but by the end of
December only 4.2% remained in these defensive instruments.
FACING HEADWINDS, FUND WILL PURSUE A STEADY COURSE
We believe that 2008 will be a difficult year in general, with further fallout
from the subprime mortgage debacle and lingering credit concerns. As 2007 drew
to a close, the Fed appeared to be standing on the sidelines, but shortly after
the new year began they lowered the federal funds rate twice in January, for a
cut of 1.25% within eight days. These aggressive moves indicated the depth of
the central bank's concern that turmoil in the financial markets and a weak
housing market could cause the U.S. economy to spiral downward.
In the second half of the fund's fiscal year we will pursue the same flexible
strategy that has been in place over the first half. We will continue to
actively manage the portfolio, keeping the fund's average maturity relatively
short to maintain liquidity, and extending where possible to pick up additional
yield. In addition, we will focus on larger, more established issuers of
commercial paper to capture yield without sacrificing safety.
Annualized Seven-Day Yield -- December 31, 2007
Class A, B & C 4.46%
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, 2007/2/
6 MONTHS 1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION
CLASS A (Inception 7/10/78)
Net Asset Value 2.36% 4.79% 2.48% 3.21% --
CLASS B (Inception 9/13/93)
Net Asset Value 2.36 4.79 2.48 3.21 --
CLASS C (Inception 3/1/98)
Net Asset Value 2.36 4.79 2.48 -- 3.18%
- ----------------------------------------------------------------------------
/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/Fund performance has been increased by expense reductions and
reimbursements, if any, without which performance would have been lower.
Expense Ratios
Expense Ratios as Stated in the Most Recent Prospectus
Share Class Gross Expense Ratio* Net Expense Ratio**
- ----------------------------------------------------
A 0.71% 0.65%
- ----------------------------------------------------
B 0.71 0.65
- ----------------------------------------------------
C 0.71 0.65
- ----------------------------------------------------
* Before reductions and reimbursements.
**After reductions 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 July 1, 2007 through December 31, 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 7/1/2007 12/31/2007 7/1/2007 - 12/31/2007
- ------------------------------------------------------------------------------------------------------------------
CLASS A
- ------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,023.60 $3.31
- ------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,021.87 $3.30
- ------------------------------------------------------------------------------------------------------------------
CLASS B
- ------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,023.60 $3.31
- ------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,021.87 $3.30
- ------------------------------------------------------------------------------------------------------------------
CLASS C
- ------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,023.60 $3.31
- ------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,021.87 $3.30
*Expenses are equal to the Fund's annualized expense ratio (after advisory
reduction/reimbursement) of 0.65% 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 366 (to reflect
the half-year period).
4
NATIXIS CASH MANAGEMENT TRUST - MONEY MARKET SERIES --
PORTFOLIO OF INVESTMENTS
Investments as of December 31, 2007 (Unaudited)
Principal
Amount Description Value (+)
- --------------------------------------------------------------------------------------------
Commercial Paper -- 42.3% of Net Assets
Banking -- 22.0%
$ 5,000,000 HSH Nordbank AG,
5.100%, 1/15/2008 $ 4,990,083
10,000,000 Societe Generale North America,
5.080%, 1/22/2008 9,970,367
10,000,000 ICICI Bank Ltd., (Credit Support: Fortis Bank),
5.120%, 2/01/2008 9,955,911
10,000,000 Bank of Ireland,
4.800%, 2/04/2008 9,954,667
7,000,000 Commonwealth Bank of Australia,
4.935%, 2/21/2008 6,951,061
10,000,000 Anglo Irish Bank,
4.920%, 4/28/2008(b) 9,838,733
---------------
51,660,822
---------------
Education -- 4.7%
11,000,000 John Hopkins University, Series C,
4.750%, 1/14/2008 11,000,000
---------------
Financial -- 8.4%
10,000,000 Dexia Delaware LLC,
4.850%, 2/15/2008 9,939,375
10,000,000 UBS Finance,
4.925%, 4/04/2008 9,871,403
---------------
19,810,778
---------------
Health Care -- Services -- 4.7%
11,000,000 Dean Health Systms, Inc., (Credit Support: Marshall & Ilsley),
4.650%, 1/10/2008 10,987,213
---------------
Distribution/Wholesale -- 2.5%
6,000,000 Louis Dreyfus Corp., (Credit Support: Caylon),
5.200%, 1/08/2008 5,993,933
---------------
Total Commercial Paper (Identified Cost $99,452,746) 99,452,746
---------------
Certificates of Deposit -- 31.1%
10,000,000 Unicredito Italiano,
5.750%, 1/07/2008 10,000,000
8,000,000 Lloyds Bank PLC,
5.050%, 1/15/2008 8,000,866
10,000,000 Skandinaviska Enskilda Banken,
5.170%, 1/18/2008 9,999,965
10,000,000 Royal Bank Of Scotland,
4.800%, 1/29/2008 9,997,960
10,000,000 Barclays Bank PLC,
5.200%, 3/03/2008 10,000,000
10,000,000 HBOS Treasury Services PLC,
5.480%, 3/07/2008 10,000,000
5,000,000 HSH Nordbank AG,
5.173%, 3/13/2008(d) 4,999,903
10,000,000 Bank of Montreal,
4.400%, 6/17/2008(d) 10,000,000
---------------
Total Certificates of Deposit (Identified Cost $72,998,694) 72,998,694
---------------
Principal
Amount Description Value (+)
- -----------------------------------------------------------------------------------------------
Medium Term Notes -- 2.1%
Broker/Dealer -- 2.1%
$ 5,000,000 Merrill Lynch & Co., Inc.,
5.316%, 1/04/2009(c)(d) $ 5,001,249
---------------
Total Medium Term Notes (Identified Cost $5,001,249) 5,001,249
---------------
Variable Rate Demand Notes -- 16.0%
Financial -- 1.3%
3,130,000 MOB Management One LLC, (Credit Support: Columbus Bank & Trust),
5.390%, 12/01/2031(e) 3,130,000
---------------
Municipal -- 10.4%
9,350,000 Chicago, IL, Series B, (Credit Support: FGIC),
4.860%, 1/01/2019(e) 9,350,000
10,000,000 Colorado, Southern Ute Indian Tribe Reservation,
5.030%, 1/01/2027(e) 10,000,000
5,000,000 Connecticut State Housing Finance Authority,
(Credit Support: AMBAC Indemnity),
5.090%, 5/15/2033(e) 5,000,000
---------------
24,350,000
---------------
Real Estate -- 4.1%
705,000 Shayeson-Huff Properties LLC, (Credit Support: US Bank),
5.190%, 11/01/2016(e) 705,000
1,750,000 Jobs Co. LLC (The), (Credit Support: First Commercial),
4.950%, 2/01/2022(e) 1,750,000
641,000 Pine Tree Country Club, (Credit Support: Amsouth Bank),
4.930%, 8/01/2023(e) 641,000
4,080,000 Storage World, LLC, (Credit Support: Regions Bank),
5.000%, 12/01/2024(e) 4,080,000
2,420,000 J&M, LLC, (Credit Support: First Commercial),
5.050%, 10/01/2026(e) 2,420,000
---------------
9,596,000
---------------
Special Purpose -- 0.2%
395,000 Tanner & Guin LLC, (Credit Support: Amsouth Bank),
5.010%, 9/01/2029(e) 395,000
---------------
Total Variable Rate Demand Notes (Identified Cost $37,471,000) 37,471,000
---------------
Time Deposit -- 4.5%
10,600,000 National Bank of Canada,
4.400%, 1/02/2008 10,600,000
---------------
Total Time Deposits (Identified Cost $10,600,000) 10,600,000
---------------
Government Agencies -- 4.2%
10,000,000 Federal Home Loan Mortgage Corp.,
4.755%, 2/11/2008 9,945,846
---------------
Total Government Agencies (Identified Cost $9,945,846) 9,945,846
---------------
Total Investments -- 100.2%
(Identified Cost $235,469,535)(a) 235,469,535
Other assets less liabilities -- (0.2)% (470,020)
---------------
Net Assets -- 100% $ 234,999,515
===============
See accompanying notes to financial statements.
5
NATIXIS CASH MANAGEMENT TRUST - MONEY MARKET SERIES --
PORTFOLIO OF INVESTMENTS (continued)
Investments as of December 31, 2007 (Unaudited)
(+) See Note 2 to Financial Statements.
(a) The aggregate cost for federal income tax purposes was $235,469,535.
(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, 2007, this security amounted to
$9,838,733 which represents 4.2% of net assets.
(c) Illiquid security. At December 31, 2007, the value of this security amounted to $5,001,249 or
2.1% of net assets.
(d) Floating rate note. Rate shown is as of December 31, 2007.
(e) 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
Holdings at December 31, 2007 as a Percentage of Net Assets (Unaudited)
Certificates of Deposit 31.1%
Banking 22.0
Municipal 10.4
Financial 9.7
Education 4.7
Health Care -- Services 4.7
Time Deposit 4.5
Government Agencies 4.2
Real Estate 4.1
Distribution/Wholesale 2.5
Broker/Dealer 2.1
Special Purpose 0.2
See accompanying notes to financial statements.
6
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2007 (Unaudited)
Natixis Cash
Management Trust
--------------------
ASSETS
Investments, at amortized cost $ 235,469,535
Cash 73,642
Receivable for Fund shares sold 336,530
Interest receivable 1,242,990
--------------------
TOTAL ASSETS 237,122,697
--------------------
LIABILITIES
Payable for Fund shares redeemed 1,475,073
Dividends payable 25,645
Management fees payable (Note 4) 61,584
Deferred Trustees' fees (Note 4) 319,926
Administrative fees payable (Note 4) 22,452
Other accounts payable and accrued
expenses 218,502
--------------------
TOTAL LIABILITIES 2,123,182
--------------------
NET ASSETS $ 234,999,515
====================
NET ASSETS CONSIST OF:
Paid-in capital $ 234,969,714
Undistributed net investment income 29,557
Accumulated net realized gain on
investments 244
--------------------
NET ASSETS $ 234,999,515
====================
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 $ 216,368,925
====================
Shares of beneficial interest 216,337,865
====================
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 $ 15,892,311
====================
Shares of beneficial interest 15,894,088
====================
Net asset value and offering price
per share $ 1.00
====================
Class C shares: (redemption price per
share is equal to net asset value
less any applicable contingent
deferred sales charge) (Note 1)
Net assets $ 2,738,279
====================
Shares of beneficial interest 2,737,976
====================
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, 2007 (Unaudited)
Natixis Cash
Management Trust
---------------------
---------------------
NET INVESTMENT INCOME
Interest $ 6,543,354
---------------------
Expenses
Management fees (Note 4) 431,574
Trustees' fees and expenses (Note 4) 11,105
Administrative fees (Note 4) 67,439
Custodian fees and expenses 19,280
Transfer agent fees and expenses - Class A (Note 4) 239,835
Transfer agent fees and expenses - Class B (Note 4) 17,950
Transfer agent fees and expenses - Class C (Note 4) 2,637
Audit fees 15,681
Legal fees 4,807
Shareholder reporting expenses 29,152
Registration fees 31,477
Miscellaneous expenses 10,128
---------------------
Total expenses 881,065
Less expense offset(a) (22,074)
Less fee reduction and/or expense reimbursement (Note 4) (50,176)
---------------------
Net expenses 808,815
---------------------
Net investment income 5,734,539
---------------------
REALIZED GAIN ON INVESTMENTS 244
---------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 5,734,783
=====================
(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
STATEMENTS OF CHANGES IN NET ASSETS
Natixis Cash Management Trust
--------------------------------------------
Six Months Ended
December 31, 2007 Year Ended
(unaudited) June 30, 2007
--------------------- ---------------------
FROM OPERATIONS:
Net investment income $ 5,734,539 $ 11,971,210
Net realized gain on investments 244 372
--------------------- ---------------------
Net increase in net assets resulting
from operations 5,734,783 11,971,582
--------------------- ---------------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A (5,281,046) (11,014,765)
Class B (395,236) (865,824)
Class C (58,262) (90,629)
--------------------- ---------------------
Total distributions (5,734,544) (11,971,218)
--------------------- ---------------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE
5):
Proceeds from sale of shares 198,701,544 397,344,436
Net asset value of shares issued in
connection with the reinvestment of
distributions 5,579,531 11,707,712
Cost of shares redeemed (209,464,118) (424,686,319)
--------------------- ---------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
SHARE TRANSACTIONS (5,183,043) (15,634,171)
--------------------- ---------------------
Net decrease in net assets (5,182,804) (15,633,807)
--------------------- ---------------------
NET ASSETS
Beginning of the period 240,182,319 255,816,126
--------------------- ---------------------
End of the period $ 234,999,515 $ 240,182,319
===================== =====================
UNDISTRIBUTED NET INVESTMENT INCOME $ 29,557 $ 29,562
===================== =====================
See accompanying notes to financial statements.
9
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10
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year.
Income from investment operations: Less distributions:
---------------------------------- ------------------------
Net asset Dividends
value, Net Total from from net
beginning investment investment investment Total
of year income operations income distributions
---------- ---------- ---------- ---------- -------------
Class A, B, C
12/31/2007(a) $ 1.00 $ 0.0234 $ 0.0234 $ (0.0234) $ (0.0234)
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)For the six months ended December 31, 2007 (unaudited)
(b)Computed on an annualized basis for period less than one year.
(c)Had certain expenses not been reduced during the period, if applicable,
total return would have been lower. Periods of less than one year, if
applicable, are not annualized.
See accompanying notes to financial statements.
11
Ratios to average net assets:
----------------------------------
Net assets, Net
Net asset end of Gross Net investment
value, end Total return year expenses expenses income
of year (%) (c) (000's) (%) (b) (%) (b)(d)(e) (%) (b)
---------- ------------ ----------- --------- ------------- ----------
$ 1.00 2.4 $ 235,000 0.71 0.65 4.63
1.00 4.8 240,182 0.71 0.67 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
(d)Represents expenses net of minimum balance fees deducted from shareholder
accounts and retained by the Fund, as described in the Fund's prospectus.
(e)The investment adviser has agreed to reimburse a portion of the Fund's
expenses and/or reduce its management fee during the period. Without this
reimbursement/fee reduction, if applicable, expenses would have been higher.
12
NOTES TO FINANCIAL STATEMENTS
December 31, 2007 (Unaudited)
1. Organization. Natixis Cash Management Trust - Money Market Series (the
"Fund") is the only series of Natixis 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 and Class C shares. On June 1, 2007, the
Board of Trustees of the Trust approved the termination of offering Class B
shares. Effective July 31, 2007 no new accounts may be opened in Class B
shares. Effective October 12, 2007, no additional investments may be made in
Class B shares. 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 or Loomis Sayles 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.
Management has performed an analysis of the Fund's tax positions taken on
federal and state tax returns that remain subject to examinations (tax years
June 30, 2004 - 2007) and has concluded that no provisions for income tax are
required. Fund Management is not aware of any events that are reasonably
possible to occur in the next six 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, if
any, 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, 2007 distributions of $11,971,218 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 non-U.S. banks, non-U.S. 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
13
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2007 (Unaudited)
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 Pronouncement. 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 six months ended December 31, 2007,
purchases and proceeds from sales or maturities of short-term obligations
(including securities purchased subject to repurchase agreements) were
$2,563,033,977 and $2,570,505,796 respectively.
4. Management Fees and Other Transactions with Affiliates.
a. Management Fees. Natixis Asset Management Advisors, L.P. ("Natixis
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%
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"), which is part of Natixis Global Asset
Management, 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 reduce 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.
For the six months ended December 31, 2007, the management fees and reductions
of management fees for the Fund were as follows:
Percentage of Average
Gross Reduction of Net Daily Net Assets
Management Management Management ---------------------
Fee Fee Fee Gross Net
---------- ------------ ---------- ----- -----
$431,574 $48,658 $382,916 0.35% 0.31%
Natixis Advisors shall be permitted to recover expenses it has borne under the
expense limitation agreement (whether through a reduction of its management fee
or otherwise) on a class by class basis in later periods to the extent the
expenses of a class fall below a class' expense limits, provided, however, that
a class is not obligated to pay such deferred fees/expenses more than one year
after the end of the fiscal year in which the fee/expense was deferred. The
amounts subject to possible reimbursement under the expense limitation
agreements at December 31, 2007 were as follows:
Expenses Subject to Possible Reimbursement until
June 30, 2009
------------------------------------------------
Class A Class B Class C Total
------- ------- ------- -----
$44,766 $3,367 $525 $48,658
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 sub-administrator.
Pursuant to an agreement among the Trust, Natixis Funds Trust I, Natixis Funds
Trust II, Natixis Funds Trust III, Natixis Funds Trust IV ("Natixis Funds
Trusts"), Loomis Sayles Funds I, Loomis Sayles Funds II ("Loomis Sayles Funds
Trusts") and Natixis Advisors (the "Administrative Service Agreement"), each
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 the next $20 billion and 0.045% 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.
Effective September 17, 2007, pursuant to an amendment to the Administrative
Service Agreement, the Hansberger International Series was added to the
Agreement and pays Natixis Advisors monthly its pro rata fees equal to its
prorated portion of the above mentioned fees.
14
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2007 (Unaudited)
New funds are subject to an annual fee of $50,000 plus $12,500 per class and an
additional $50,000 if managed by multiple subadvisors in their first calendar
year of operations.
Prior to July 1, 2007, each Fund paid 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.
Effective October 1, 2007, State Street Bank reduced the fees it receives from
Natixis Advisors for serving as sub-administrator to the Funds. Also, effective
October 1, 2007, Natixis Advisors has given a binding contractual undertaking
to the Funds to waive the administrative fees paid by the Fund in an amount
equal to the reduction in sub-administrative fees discussed above. The waiver
is in effect through June 30, 2008.
For the six months ended December 31, 2007, the Fund paid the following for
administrative fees to Natixis Advisors:
Gross Waiver of Net
Administrative Administrative Administrative
Fees Fees Fees
-------------- -------------- --------------
$67,439 $1,518 $65,921
c. Distribution Agreement. Natixis Distributors, L.P. ("Natixis Distributors"),
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. Sub-Transfer Agent Fees and Expenses. Natixis Distributors has entered into
agreements with financial intermediaries to provide certain recordkeeping,
processing, shareholder communications and other services to customers of the
intermediaries and have agreed to compensate the intermediaries for providing
those services. Certain services would be provided by the Fund if the shares of
those customers were registered directly with the Fund's transfer agent.
Accordingly, the Fund agreed to pay a portion of the intermediary fees
attributable to shares of the Fund held by the intermediary (which generally
are a percentage of the value of shares held) not exceeding what the Fund would
have paid its transfer agent had each customer's shares been registered
directly with the transfer agent instead of held through the intermediary.
Natixis Distributors pay the remainder of the fees. Listed below are the fees
incurred by the Fund which are included in the transfer agent fees and expenses
in the Statement of Operations.
Sub-Transfer Agent Expense
--------------------------
Class A Class B Class C
------- ------- -------
$2,629 $201 $31
e. Trustees Fees and Expenses. The Fund does not pay any compensation directly
to its officers or Trustees who are directors, officers or employees of 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, Loomis Sayles Funds Trusts and
Hansberger International Series (effective September 12, 2007) 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.
Effective January 1, 2008, each Independent Trustee (other than the
Chairperson) receives, in the aggregate, a retainer fee at the annual rate of
$65,000. Each Independent Trustee also receives a meeting attendance fee of
$7,500 for each meeting of the Board of Trustees that he or she attends in
person and $3,750 for each meeting that he or she attends telephonically. In
addition, each Contract Review and Governance Committee member receives $5,000
for each committee meeting that he or she attends in person and $2,500 for each
committee meeting that he or she attends telephonically. Each Audit Committee
member receives $6,250 for each committee meeting that he or she attends in
person and $3,125 for each committee meeting that he or she attends
telephonically. The retainer fees paid to the Chairperson and the Committee
Chairmen remain unchanged.
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, the Loomis
Sayles Funds Trusts and Hansberger International Series on the normal payment
date. Deferred amounts remain in the funds until distributed in accordance with
the Plan.
15
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2007 (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, 2007 June 30, 2007
----------------- -----------------
Class A
Issued from the sale of shares 193,998,149 390,333,502
Issued in connection with the reinvestment of distributions 5,150,237 10,797,329
----------------- -----------------
199,148,386 401,130,831
Redeemed (203,922,538) (413,258,211)
----------------- -----------------
Net change (4,774,152) (12,127,380)
----------------- -----------------
Class B
Issued from the sale of shares 2,994,477 5,506,206
Issued in connection with the reinvestment of distributions 376,976 824,826
----------------- -----------------
3,371,453 6,331,032
Redeemed (4,606,083) (9,629,351)
----------------- -----------------
Net change (1,234,630) (3,298,319)
----------------- -----------------
Class C
Issued from the sale of shares 1,708,918 1,504,728
Issued in connection with the reinvestment of distributions 52,318 85,557
----------------- -----------------
1,761,236 1,590,285
Redeemed (935,497) (1,798,757)
----------------- -----------------
Net change 825,739 (208,472)
----------------- -----------------
Increase (decrease) from capital share transactions (5,183,043) (15,634,171)
================= =================
16
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.
(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)], filed herewith as exhibits (a)(2)(1) and
(a)(2)(2).
(a)(3) Not applicable.
(b) 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.
Natixis Cash Management Trust
By: /s/ John T. Hailer
------------------------------
Name: John T. Hailer
Title: President and Chief Executive
Officer
Date: February 21, 2008
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 21, 2008
By: /s/ Michael C. Kardok
------------------------------
Name: Michael C. Kardok
Title: Treasurer
Date: February 21, 2008