SCUDDER
INVESTMENTS(SM)
[LOGO]
Tax-Exempt Portfolio
Scudder Tax-Exempt
Cash Institutional Shares
Fund #148
Tax-Exempt
Cash Managed Shares
Fund #248
Annual Report
April 30, 2000
The portfolio seeks to provide maximum current income that is exempt from
Federal income taxes to the extent consistent with stability of capital.
<PAGE>
Dear Shareholder:
We appreciate your decision to invest in Scudder Institutional Funds. To provide
you with an update of holdings, on the following pages you'll find the
Tax-Exempt Portfolio's annual report for the year ended April 30, 2000. Included
are financial highlights for the following share classes:
o Institutional Shares
o Managed Shares
Briefly, for the year ending April 30, 2000 the Portfolio registered performance
and achieved its stated objective of providing maximum current income exempt
from Federal income tax, while maintaining stability of principal.
Portfolio Performance
As of April 30, 2000
-----------------------------------------------------------
Annualized Annualized Equivalent
Net Yield Taxable Yield
-----------------------------------------------------------
Since SEC Since SEC
11/17/99* 7-Day 11/17/99* 7-Day
-----------------------------------------------------------
Tax-Exempt
Cash
Institutional
Shares 3.59% 4.26% 5.71% 6.77%
-----------------------------------------------------------
Tax-Exempt
Cash Managed
Shares 3.34% 4.02% 5.31% 6.39%
-----------------------------------------------------------
* Commenced operations on 11/17/99.
Thank you for your investment. We look forward to serving your investment needs
for years to come.
/s/Frank Rachwalski
Frank Rachwalski
Vice President and Lead Portfolio Manager
June 5, 2000
Frank Rachwalski is a Managing Director of Scudder Kemper Investments, Inc. and
is Vice President and Lead Portfolio Manager of all Scudder Kemper Money Funds.
Mr. Rachwalski holds B.B.A. and M.B.A. degrees from Loyola University.
Notes
Yields are historical, may fluctuate, and do not guarantee future performance.
Net yields are the sum of the daily dividend rates for the period.
The equivalent taxable yield allows you to compare with the performance of
taxable money market funds. For the Tax-Exempt Portfolio, the equivalent taxable
yield is based upon the marginal income tax rate of 37.1%. Income may be subject
to local taxes and for some investors, the alternative minimum tax.
Like all money market funds, an investment in the Fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although the Fund seeks to preserve your investment at $1.00 per share,
it is possible to lose money.
The views expressed in this report reflect those of the portfolio manager only
through the end of the period stated above. The manager's views are subject to
change at any time, based on market and other conditions.
1 | Tax Exempt Portfolio
<PAGE>
Portfolio of Investments at April 30, 2000
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Tax-Exempt Portfolio
------------------------------------------------------------------------------------------
Variable Rate Demand Securities* -- 61.7%
------------------------------------------------------------------------------------------
Alabama
<S> <C> <C>
Mobile Ascension, 5.05% $ 10,000,000 $ 10,000,000
------------------------------------------------------------------------------------------
Birmingham Ascension, 5.05% 5,000,000 5,000,000
------------------------------------------------------------------------------------------
Arizona
Maricopa County,
Pollution Control Revenue, 5.10% 8,900,000 8,900,000
------------------------------------------------------------------------------------------
Pima County,
Industrial Development Authority Revenue, 5.60% 700,000 700,000
------------------------------------------------------------------------------------------
California
Los Angeles,
Harbor Improvement Corp., 5.35% 6,400,000 6,400,000
------------------------------------------------------------------------------------------
Colorado
Denver City and County,
Special Facilities Airport Revenue, 5.00% 16,000,000 16,000,000
------------------------------------------------------------------------------------------
Health Facilities Authority,
Frasier Meadows Manor Project, 5.10% 10,350,000 10,350,000
------------------------------------------------------------------------------------------
Health Facilities Authority,
Bethesda Living Center Project, 5.10% 6,000,000 6,000,000
------------------------------------------------------------------------------------------
Mullen,
Educational Facilities Authority, 5.10% 4,285,000 4,285,000
------------------------------------------------------------------------------------------
District of Columbia
The Washington Home, Inc., 5.15% 6,950,000 6,950,000
------------------------------------------------------------------------------------------
Florida
Hampton County,
Multi-Family Housing, 5.15% 8,000,000 8,000,000
------------------------------------------------------------------------------------------
Indian River County,
Hospital Revenue, 5.20% 10,500,000 10,500,000
------------------------------------------------------------------------------------------
Sunshine State Governmental Funding Commission, 5.10% 10,615,000 10,615,000
------------------------------------------------------------------------------------------
Orange County,
Health Facilities Authority, 5.15% 3,700,000 3,700,000
------------------------------------------------------------------------------------------
Putnam County,
Florida Development Authority, 5.00% 3,000,000 3,000,000
------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
2 | Tax Exempt Portfolio
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
-----------------------------------------------------------------------------------------------
<S> <C> <C>
University of Northern Florida, 5.30% $ 9,600,000 $ 9,600,000
-----------------------------------------------------------------------------------------------
Georgia
De Kalb County,
Development Authority Pollution Control Revenue, 5.10% 5,000,000 5,000,000
-----------------------------------------------------------------------------------------------
Fulton County,
Development Authority Revenue, 5.10% 5,000,000 5,000,000
-----------------------------------------------------------------------------------------------
Laurens County,
Development Revenue, 5.20% 4,000,000 4,000,000
-----------------------------------------------------------------------------------------------
Willacoochie,
Development Authority Pollution Control Revenue, 5.20% 6,000,000 6,000,000
-----------------------------------------------------------------------------------------------
Fayette County,
Educational Facilities Authority, 5.10% 5,000,000 5,000,000
-----------------------------------------------------------------------------------------------
Gainesville-Riverside,
Redevelopment Authority Revenue, 5.10% 19,000,000 19,000,000
-----------------------------------------------------------------------------------------------
Illinois
Industrial Development Revenue, 5.10% 15,245,000 15,245,000
-----------------------------------------------------------------------------------------------
Student Assistance Commission,
Student Loan Revenue, 5.10% 1,000,000 1,000,000
-----------------------------------------------------------------------------------------------
Carol Stream, 5.15% 2,000,000 2,000,000
-----------------------------------------------------------------------------------------------
Des Plaines,
Industrial Development Revenue, 5.20% 3,835,000 3,835,000
-----------------------------------------------------------------------------------------------
Elgin,
Judson College Project, 5.10% 3,190,000 3,190,000
-----------------------------------------------------------------------------------------------
Du Page County,
Benet Academy Building Revenue, 5.11% 8,000,000 8,000,000
-----------------------------------------------------------------------------------------------
Columbia,
Educational Facilities Authority, 5.05% 4,300,000 4,300,000
-----------------------------------------------------------------------------------------------
Quad Cities,
Economic Development Authority, 5.20% 3,000,000 3,000,000
-----------------------------------------------------------------------------------------------
Rockford,
Industrial Development Revenue, 5.20% 4,000,000 4,000,000
-----------------------------------------------------------------------------------------------
Rockford-Fastener,
Industrial Project Revenue, 5.45% 2,150,000 2,150,000
-----------------------------------------------------------------------------------------------
Indiana
Fort Wayne,
Pollution Control Revenue, 5.00% 6,000,000 6,000,000
-----------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
3 | Tax Exempt Portfolio
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
----------------------------------------------------------------------------------------------
<S> <C> <C>
Indiana Bond Bank, 5.10% $ 7,010,000 $ 7,010,000
----------------------------------------------------------------------------------------------
Health Facilities Authority, 5.05% 4,000,000 4,000,000
----------------------------------------------------------------------------------------------
Kansas
Kansas City,
Pollution Control Revenue, 4.90% 9,000,000 9,000,000
----------------------------------------------------------------------------------------------
Kentucky
Jeffersontown,
Lease Program Revenue, 5.05% 4,000,000 4,000,000
----------------------------------------------------------------------------------------------
Lexington-Fayette Urban County,
Industrial Development Revenue, 5.10% 8,000,000 8,000,000
----------------------------------------------------------------------------------------------
Mason County,
East Kentucky Power Co-op, 5.00% 14,000,000 14,000,000
----------------------------------------------------------------------------------------------
Mayfield,
Multi-City Lease Revenue, 5.20% 6,535,000 6,535,000
----------------------------------------------------------------------------------------------
Maryland
Baltimore County,
Oak Crest Village, Inc., 5.05% 7,360,000 7,360,000
----------------------------------------------------------------------------------------------
Michigan
Strategic Fund,
Limited Obligation Revenue, 5.00%-5.20% 13,435,000 13,435,000
----------------------------------------------------------------------------------------------
Michigan State Hospital,
Financial Authority Revenue, 5.00% 13,500,000 13,500,000
----------------------------------------------------------------------------------------------
State Housing Development, 5.00% 5,325,000 5,325,000
----------------------------------------------------------------------------------------------
Missouri
Environment Improvement & Energy, 5.00% 2,460,000 2,460,000
----------------------------------------------------------------------------------------------
St. Louis,
Development Financial Authority, 5.25% 5,000,000 5,000,000
----------------------------------------------------------------------------------------------
Nebraska
York,
Industrial Development Revenue, 5.25% 5,600,000 5,600,000
----------------------------------------------------------------------------------------------
New Mexico
Farmington,
El Paso Electric Co. Project, 5.10% 6,100,000 6,100,000
----------------------------------------------------------------------------------------------
North Carolina
Medical Care Commission,
Hospital Revenue, 5.10% 6,000,000 6,000,000
----------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
4 | Tax Exempt Portfolio
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Winston-Salem,
Multi-Family Housing, 4.90% $ 6,960,000 $ 6,960,000
-----------------------------------------------------------------------------------------------
Ohio
Hancock County,
Multi-Family Housing, 5.20% 6,150,000 6,150,000
-----------------------------------------------------------------------------------------------
Medina County,
Health Care Facilities Revenue, 5.10% 4,500,000 4,500,000
-----------------------------------------------------------------------------------------------
Higher Education Facilities Commission, 5.10% 8,000,000 8,000,000
-----------------------------------------------------------------------------------------------
Oregon
Economic Development Revenue, 5.20% 3,650,000 3,650,000
-----------------------------------------------------------------------------------------------
Clackams County,
Hospital Revenue, 5.25% 8,000,000 8,000,000
-----------------------------------------------------------------------------------------------
Pennsylvania
Emmaus,
General Authority Revenue, 5.08% 6,300,000 6,300,000
-----------------------------------------------------------------------------------------------
Higher Education Facilities Commission, 5.10% 3,000,000 3,000,000
-----------------------------------------------------------------------------------------------
Parkland School District,
Public School Building Authority, 5.11% 6,000,000 6,000,000
-----------------------------------------------------------------------------------------------
Lancaster County,
Hospital Revenue, 5.13% 4,145,000 4,145,000
-----------------------------------------------------------------------------------------------
Lehigh County,
Industrial Development Authority, 4.30% 4,700,000 4,700,000
-----------------------------------------------------------------------------------------------
South Carolina
Public Service Authority, 5.13% 2,000,000 2,000,000
-----------------------------------------------------------------------------------------------
Tennessee
Clarksville,
Public Building Authority, 5.10% 3,800,000 3,800,000
-----------------------------------------------------------------------------------------------
Maury County,
Saturn Corporation Project, 5.15% 4,500,000 4,500,000
-----------------------------------------------------------------------------------------------
Texas
Harris County,
Health Facilities Authority, 5.00% 10,000,000 10,000,000
-----------------------------------------------------------------------------------------------
Trinity River Authority,
Pollution Control Revenue, 5.05% 3,900,000 3,900,000
-----------------------------------------------------------------------------------------------
San Antonio,
Industrial Development Authority, 5.10% 5,600,000 5,600,000
-----------------------------------------------------------------------------------------------
San Antonio Electric and Gas, 5.15% $ 6,700,000 $ 6,700,000
-----------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral statements.
5 | Tax Exempt Portfolio
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
-----------------------------------------------------------------------------------------------
<S> <C> <C>
Texas Small Business Industry Development Corp.,
Industrial Development Revenue, 5.15% 6,000,000 6,000,000
-----------------------------------------------------------------------------------------------
Vermont
Industrial Development Authority, 4.45% 2,595,000 2,595,000
-----------------------------------------------------------------------------------------------
Student Association Corp,
Student Loan Revenue, 4.30% 13,190,000 13,190,000
-----------------------------------------------------------------------------------------------
Vermont Educational and Health Buildings,
Funding Agency Revenue, 5.00% 6,000,000 6,000,000
-----------------------------------------------------------------------------------------------
Virginia
Albemarle County,
Industrial Development Authority, 5.05% 3,450,000 3,450,000
-----------------------------------------------------------------------------------------------
Loudoun County,
Industrial Development Authority, 5.20% 2,640,000 2,640,000
-----------------------------------------------------------------------------------------------
Wisconsin
Eau Claire,
Solid Waste Disposal Revenue, 5.30% 5,800,000 5,800,000
-----------------------------------------------------------------------------------------------
Total Variable Rate Demand Securities (Cost: $471,625,000) 471,625,000
-----------------------------------------------------------------------------------------------
Other Securities -- 38.3%
-----------------------------------------------------------------------------------------------
Alaska
City of Valdez,
ARCO, 3.85%, 5/12/2000 7,000,000 7,000,000
-----------------------------------------------------------------------------------------------
Arizona
Salt River Project,
Agricultural Improvement and Power District,
3.90%, 5/10/2000-6/13/2000 25,000,000 25,000,000
-----------------------------------------------------------------------------------------------
Colorado
Platte River,
Power Authority, 3.95%, 5/9/2000-6/13/2000 9,500,000 9,500,000
-----------------------------------------------------------------------------------------------
Florida
Sarasota County,
Hospital Revenue, 3.85%-4.05%, 5/8/2000-6/13/2000 13,550,000 13,550,000
-----------------------------------------------------------------------------------------------
Pinellas County,
Educational Facilities Authority, 4.05%-4.10%,
5/9/2000-5/15/2000 13,500,000 13,500,000
-----------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
6 | Tax Exempt Portfolio
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
----------------------------------------------------------------------------------------------------
<S> <C> <C>
Gainesville Utilities Authority, 3.90%, 5/11/2000 $ 4,000,000 $ 4,000,000
----------------------------------------------------------------------------------------------------
Orange County,
Health Facilities Authority, 4.10%, 5/15/2000 2,800,000 2,800,000
----------------------------------------------------------------------------------------------------
Orlando,
Capital Improvements Authority, 4.10%, 6/14/2000 3,000,000 3,000,000
----------------------------------------------------------------------------------------------------
Georgia
Municipal Electric Authority, 4.10%, 6/13/2000 5,600,000 5,600,000
----------------------------------------------------------------------------------------------------
Illinois
Educational Facilities Authority, 3.70%-4.15%,
5/11/2000-6/12/2000 11,260,000 11,260,000
----------------------------------------------------------------------------------------------------
Health Facilities Authority, 4.05%, 6/14/2000 4,000,000 4,000,000
----------------------------------------------------------------------------------------------------
Indiana
Jasper County,
Industrial Pollution Control Revenue, 4.35%-4.45%,
5/9/2000-6/21/2000 10,000,000 10,000,000
----------------------------------------------------------------------------------------------------
Sullivan Hoosier, 3.95%, 5/11/2000 5,200,000 5,200,000
----------------------------------------------------------------------------------------------------
Kentucky
Pendleton County,
Multi-County Lease Revenue, 4.05%-4.20%,
5/8/2000-6/14/2000 18,385,000 18,385,000
----------------------------------------------------------------------------------------------------
Danville,
Multi-County Lease Revenue, 4.15%, 6/14/2000 7,990,000 7,990,000
----------------------------------------------------------------------------------------------------
Louisiana
Industrial District of West Baton Rouge,
Pollution Control Revenue, 4.10%-4.15%, 6/22/2000-6/26/2000 12,150,000 12,150,000
----------------------------------------------------------------------------------------------------
Maryland
Anne Arundel County,
Port Facilities Revenue, 4.05%-4.25%, 6/14/2000-6/19/2000 7,000,000 7,000,000
----------------------------------------------------------------------------------------------------
Michigan
Strategic Fund,
Continental Aluminum Project, 4.10%-4.25%, 5/10/2000-6/22/2000 15,550,000 15,550,000
----------------------------------------------------------------------------------------------------
Mississippi
Claiborne County,
Pollution Control Revenue, 4.10%, 6/13/2000 1,545,000 1,545,000
----------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
7 | Tax Exempt Portfolio
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
------------------------------------------------------------------------------------------------
Nevada
<S> <C> <C>
Las Vegas Valley,
Water & Power Authority, 4.05%, 6/12/2000 $ 7,000,000 $ 7,000,000
------------------------------------------------------------------------------------------------
New Hampshire
General Obligation, 3.95%, 5/9/2000 4,000,000 4,000,000
------------------------------------------------------------------------------------------------
Business Financial Authority,
Pollution Control Revenue, 3.95%, 5/15/2000 4,000,000 4,000,000
------------------------------------------------------------------------------------------------
Ohio
Air Quality Development Authority, 4.05%, 6/12/2000 10,000,000 10,000,000
------------------------------------------------------------------------------------------------
Oklahoma
Oklahoma City, 3.95%, 5/8/2000 8,000,000 8,000,000
------------------------------------------------------------------------------------------------
Pennsylvania
Philadelphia,
Transportation Authority, 4.25%, 6/30/2000 3,000,000 3,003,570
------------------------------------------------------------------------------------------------
Texas
Municipal Power Agency, 3.70%-3.95%, 5/9/2000 15,500,000 15,500,000
------------------------------------------------------------------------------------------------
Houston,
Water & Sewer Authority, 3.70%, 5/9/2000 5,000,000 5,000,000
------------------------------------------------------------------------------------------------
University of Texas, 3.70%, 5/10/2000 5,104,000 5,104,000
------------------------------------------------------------------------------------------------
Harris County,
Health Facilities Authority, 3.95%, 5/12/2000 4,470,000 4,470,000
------------------------------------------------------------------------------------------------
San Antonio,
Electric & Gas, 4.10%, 6/22/2000 10,000,000 10,000,000
------------------------------------------------------------------------------------------------
Transportation Authority, 4.50%, 8/31/2000 12,400,000 12,431,450
------------------------------------------------------------------------------------------------
Utah
Intermountain Power Agency, 3.95%-4.15%, 5/15/2000-6/19/2000 16,800,000 16,800,000
------------------------------------------------------------------------------------------------
Virginia
Chesapeake County,
Industrial Development Authority, 4.05%, 6/13/2000 2,000,000 2,000,000
------------------------------------------------------------------------------------------------
Chesterfield County,
Industrial Development Authority, 4.05%, 6/13/2000 2,000,000 2,000,000
------------------------------------------------------------------------------------------------
York County,
Industrial Development Authority, 4.05%, 6/13/2000 2,500,000 2,500,000
------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
8 | Tax Exempt Portfolio
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
Louisa County,
Industrial Development Authority, 4.40%, 6/26/2000 $ 4,000,000 $ 4,000,000
-----------------------------------------------------------------------------------------------------
Total Other Securities (Cost: $292,839,020) 292,839,020
-----------------------------------------------------------------------------------------------------
Total Investment Portfolio -- 100% (Cost: $764,464,020) (a) $ 764,464,020
-----------------------------------------------------------------------------------------------------
</TABLE>
Interest rates represent annualized yield to date of maturity, except for
variable rate demand securities described below.
(a) Cost for federal income tax purposes was $764,464,020.
* Variable rate demand securities. The rates shown are the current rates at
April 30, 2000. The dates shown represent the demand date or the next
interest rate change date.
The accompanying notes are an integral part of the financial statements.
9 | Tax Exempt Portfolio
<PAGE>
Financial Statements
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
Statement of Assets and Liabilities
---------------------------------------------------------------------------------------------------------------------
Tax-Exempt
as of April 30, 2000 Portfolio
-----------------------------------------------------------------------------------------------------------------------
Assets
---------------------------------------------------------------------------------------------------------------------
Investments in securities, at value (for cost, see accompanying portfolios of investments):
---------------------------------------------------------------------------------------------------------------------
<S> <C>
Short-term notes $ 764,464,020
---------------------------------------------------------------------------------------------------------------------
Repurchase agreements --
---------------------------------------------------------------------------------------------------------------------
Cash 365,106
---------------------------------------------------------------------------------------------------------------------
Receivable for investments sold 195,000
---------------------------------------------------------------------------------------------------------------------
Interest receivable 3,410,148
---------------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold --
---------------------------------------------------------------------------------------------------------------------
Due from Adviser --
---------------------------------------------------------------------------------------------------------------------
Other assets 4,000
---------------------------------------------------------------------------------------------------------------------
Total assets 768,438,274
---------------------------------------------------------------------------------------------------------------------
Liabilities
---------------------------------------------------------------------------------------------------------------------
Due to custodian bank --
---------------------------------------------------------------------------------------------------------------------
Dividends payable 1,023,011
---------------------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed 1,445,710
---------------------------------------------------------------------------------------------------------------------
Accrued management fee 207,094
---------------------------------------------------------------------------------------------------------------------
Accrued distribution services fee 47,989
---------------------------------------------------------------------------------------------------------------------
Accrued administrative services fee 89,254
---------------------------------------------------------------------------------------------------------------------
Other accrued expenses and payables 136,327
---------------------------------------------------------------------------------------------------------------------
Total liabilities 2,949,385
---------------------------------------------------------------------------------------------------------------------
Net assets, at value $ 765,488,889
---------------------------------------------------------------------------------------------------------------------
Institutional Shares
---------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 169,226,985
---------------------------------------------------------------------------------------------------------------------
Shares outstanding of capital stock, $.01 par value, unlimited number of shares authorized 169,226,985
---------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share (net assets/shares outstanding) $ 1.00
---------------------------------------------------------------------------------------------------------------------
Managed Shares
---------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 131,325,063
---------------------------------------------------------------------------------------------------------------------
Shares outstanding of capital stock, $.01 par value, unlimited number of shares authorized 131,325,063
---------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share (net assets/shares outstanding) $ 1.00
---------------------------------------------------------------------------------------------------------------------
Premier Money Market Shares
---------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 401,761
---------------------------------------------------------------------------------------------------------------------
Shares outstanding of capital stock, $.01 par value, unlimited number of shares authorized 401,761
---------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share (net assets/shares outstanding) $ 1.00
---------------------------------------------------------------------------------------------------------------------
Service Shares
---------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 464,535,080
---------------------------------------------------------------------------------------------------------------------
Shares outstanding of capital stock, $.01 par value, unlimited number of shares authorized 464,535,080
---------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share (net assets/shares outstanding) $ 1.00
---------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
10 | Tax Exempt Portfolio
<PAGE>
--------------------------------------------------------------------------------
Statement of Operations
--------------------------------------------------------------------------------
Tax-Exempt
Year ended April 30, 2000 Portfolio
--------------------------------------------------------------------------------
Investment Income
--------------------------------------------------------------------------------
Interest $ 18,364,717
--------------------------------------------------------------------------------
Expenses:
--------------------------------------------------------------------------------
Management fee 833,361
--------------------------------------------------------------------------------
Services to shareholders 981,602
--------------------------------------------------------------------------------
Custodian fees 49,921
--------------------------------------------------------------------------------
Distribution services fees 2,104,280
--------------------------------------------------------------------------------
Administrative services fees 89,254
--------------------------------------------------------------------------------
Auditing 5,271
--------------------------------------------------------------------------------
Legal 26,467
--------------------------------------------------------------------------------
Trustees' fees and expenses 15,935
--------------------------------------------------------------------------------
Reports to shareholders 56,955
--------------------------------------------------------------------------------
Registration fees 138,081
--------------------------------------------------------------------------------
Interest expense --
--------------------------------------------------------------------------------
Other 27,196
--------------------------------------------------------------------------------
Total expenses, before expense reductions 4,328,323
--------------------------------------------------------------------------------
Expense reductions (3,382)
--------------------------------------------------------------------------------
Total expenses, after expense reductions 4,324,941
--------------------------------------------------------------------------------
Net investment income 14,039,776
--------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 14,039,776
--------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
11 | Tax Exempt Portfolio
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Tax-Exempt Portfolio
--------------------------------
Years Ended April 30,
2000 1999
----------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
----------------------------------------------------------------------------------------------------------
Operations:
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net investment income (loss) $ 14,039,776 $ 8,964,353
----------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 14,039,776 8,964,353
----------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income (14,039,776) (8,964,353)
----------------------------------------------------------------------------------------------------------
Fund share transactions at net asset value of $1.00 per share:
Institutional Shares (a):
----------------------------------------------------------------------------------------------------------
Proceeds from shares sold 247,638,674 --
----------------------------------------------------------------------------------------------------------
Reinvestment of distributions 64,716 --
----------------------------------------------------------------------------------------------------------
Cost of shares redeemed (78,476,405) --
----------------------------------------------------------------------------------------------------------
169,226,985 --
----------------------------------------------------------------------------------------------------------
Managed Shares (a):
----------------------------------------------------------------------------------------------------------
Proceeds from shares sold 215,706,614 --
----------------------------------------------------------------------------------------------------------
Reinvestment of distributions 5,108 --
----------------------------------------------------------------------------------------------------------
Cost of shares redeemed (84,386,659) --
----------------------------------------------------------------------------------------------------------
131,325,063 --
----------------------------------------------------------------------------------------------------------
Premier Money Market Shares (b):
----------------------------------------------------------------------------------------------------------
Proceeds from shares sold 655,552 --
----------------------------------------------------------------------------------------------------------
Reinvestment of distributions 1,266 --
----------------------------------------------------------------------------------------------------------
Cost of shares redeemed (255,057) --
----------------------------------------------------------------------------------------------------------
401,761 --
----------------------------------------------------------------------------------------------------------
Service Shares:
----------------------------------------------------------------------------------------------------------
Proceeds from shares sold 3,032,944,597 2,019,292,957
----------------------------------------------------------------------------------------------------------
Reinvestment of distributions 11,295,030 8,821,208
----------------------------------------------------------------------------------------------------------
Cost of shares redeemed (2,960,333,539)(2,015,626,282)
----------------------------------------------------------------------------------------------------------
83,906,088 12,487,883
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share transactions 384,859,897 12,487,883
----------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 384,859,897 12,487,883
----------------------------------------------------------------------------------------------------------
Net assets at beginning of period 380,628,992 368,141,109
----------------------------------------------------------------------------------------------------------
Net assets at end of period $ 765,488,889 $ 380,628,992
----------------------------------------------------------------------------------------------------------
</TABLE>
(a) Institutional Shares and Managed Shares commenced operations on
November 17, 1999.
(b) Premier Money Market Shares were commenced operations on March 1, 2000 and
March 7, 2000 for the Government Securities Portfolio and Tax-Exempt
Portfolio, respectively.
The accompanying notes are an integral part of the financial statements.
12 | Tax Exempt Portfolio
<PAGE>
Financial Highlights
The following tables include selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements and market price data.
------------------------------------------------------------------------------
Tax-Exempt Portfolio -- Institutional Shares
------------------------------------------------------------------------------
Period ended April 30, 2000(a)
------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00
------------------------------------------------------------------------------
Net investment income .02
------------------------------------------------------------------------------
Less distributions from net investment income (.02)
------------------------------------------------------------------------------
Net asset value, end of period $ 1.00
------------------------------------------------------------------------------
Total Return (%) (b) 1.33**
--------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 169,227
------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) .23*
------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) .23*
------------------------------------------------------------------------------
Ratio of net investment income (%) 3.59*
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Tax-Exempt Portfolio -- Managed Shares
------------------------------------------------------------------------------
Period ended April 30, 2000(a)
------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00
------------------------------------------------------------------------------
Net investment income .02
------------------------------------------------------------------------------
Less distributions from net investment income (.02)
------------------------------------------------------------------------------
Net asset value, end of period $ 1.00
------------------------------------------------------------------------------
Total Return (%) (b) 1.24**
------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 131,325
------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) .48*
------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) .48*
------------------------------------------------------------------------------
Ratio of net investment income (%) 3.34*
------------------------------------------------------------------------------
(a) For the period November 17, 1999 (commencement of operations) to April 30,
2000.
(b) Total return would have been lower had certain expenses not been reduced.
* Annualized
** Not annualized
13 | Tax Exempt Portfolio
<PAGE>
Notes to Financial Statements
1. Significant Accounting Policies
Cash Account Trust (the "Fund") is registered under the Investment Company Act
of 1940, as amended (the "1940 Act"), as an open-end management investment
company organized as a Massachusetts business trust currently offering three
portfolios: Money Market Portfolio, Government Securities Portfolio and
Tax-Exempt Portfolio (the "Portfolios"). Money Market Portfolio offers four
classes of shares: Institutional, Premier Money Market, Premium Reserve Money
Market and Service. Effective November 16, 1999, the Board terminated the then
existing Premier Money Market Class. The Retail shares were renamed the Premium
Reserve Money Market shares effective December 29, 1999. Effective February 23,
2000, the Board created a new class of shares, the Premier Money Market Class.
Government Securities Portfolio currently offers two classes of shares: Premier
Money Market (effective March 1, 2000) and Service. Tax-Exempt Portfolio
currently offers four classes of shares: Premier Money Market (effective March
7, 2000), Managed (effective November 17, 1999), Institutional (effective
November 17, 1999) and Service. This report contains financial statements and
financial highlights for the Managed and Institutional shares of the Tax-Exempt
Portfolio.
Investment income, realized and unrealized gains and losses, and certain
fund-level expenses and expense reductions, if any, are borne pro rata on the
basis of relative net assets by the holders of all classes of shares except that
each class bears certain expenses unique to that class such as distribution
services, shareholder services, administrative services and certain other class
specific expenses. Differences in class expenses may result in payment of
different per share dividends by class. All shares of the Fund have equal rights
with respect to voting subject to class specific arrangements.
The Portfolio's financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management estimates.
The policies described below are followed consistently by the Portfolio in the
preparation of its financial statements.
Security Valuation. The Portfolio values all portfolio securities utilizing the
amortized cost method permitted in accordance with Rule 2a-7 under the 1940 Act
and pursuant to which the Portfolio must adhere to certain conditions. Under
this method, which does not take into account unrealized gains or losses on
securities, an instrument is initially valued at its cost and thereafter assumes
a constant accretion/amortization to maturity of any discount/premium. All other
securities are valued at their fair value as determined in good faith by the
Valuation Committee of the Board of Trustees.
Federal Income Taxes. The Portfolio's policy is to comply with the requirements
of the Internal Revenue Code, as amended, which are applicable to regulated
investment companies and to distribute all of its taxable and tax-exempt income
to its shareholders. Accordingly, the Portfolio paid no federal income taxes and
no federal income tax provision was required.
Distribution of Income and Gains. All of the net investment income of the
Portfolio is declared as a daily dividend and is distributed to shareholders
monthly. Net investment income includes all realized gains (losses) on portfolio
securities.
Investment Transactions and Investment Income. Investment transactions are
accounted for on the trade date. Interest income is recorded on the accrual
basis. Realized gains and losses from investment transactions are recorded on an
identified cost basis. All premiums and original issue discounts are
amortized/accreted for both tax and financial reporting purposes.
14 | Tax Exempt Portfolio
<PAGE>
Expenses. Expenses arising in connection with a specific portfolio are allocated
to that Portfolio. Other Fund expenses are allocated between the Portfolios in
proportion to their relative net assets.
2. Transactions with Affiliates
Management Agreement. The Fund has a management agreement with Scudder Kemper
Investments, Inc. (Scudder Kemper) and pays a monthly investment management fee
of 1/12 of the annual rate of 0.22% of the first $500 million of average daily
net assets declining to 0.15% of average daily net assets in excess of $3
billion. During the year ended April 30, 2000, the Portfolio incurred management
fees as follows:
Management
fees
--------------------------------------------------------------------------------
Tax-Exempt Portfolio $ 833,361
--------------------------------------------------------------------------------
Distribution Agreement. The Fund has a distribution agreement with Kemper
Distributors, Inc. (KDI). For its services as primary distributor, the Fund pays
KDI an annual fee of 0.50% of average daily net assets for the Service shares of
the Tax-Exempt Portfolio and 0.25% of average net assets for the Premier Money
Market shares pursuant to separate Rule 12b-1 plans for this Fund. For the year
ended April 30, 2000, the Portfolio incurred distribution services fees as
follows:
Distribution
services fees
--------------------------------------------------------------------------------
Tax-Exempt Portfolio $ 2,104,280
--------------------------------------------------------------------------------
The Fund has an administrative and shareholder services agreement with KDI for
providing information and administrative services to shareholders. The Managed
and Premier Money Market shares of the Portfolio pay KDI a fee at an annual rate
of up to 0.25% of average daily net assets. For the year ended April 30, 2000,
the Portfolio incurred administrative services fees as follows:
Administrative
services fees
--------------------------------------------------------------------------------
Tax-Exempt Portfolio $ 89,254
--------------------------------------------------------------------------------
Shareholder Services Agreement. Pursuant to a services agreement with the Fund's
transfer agent, Kemper Service Company (KSvC) is the shareholder service agent
of the Fund. Under the agreement, for the year ended April 30, 2000, KSvC
received shareholder services fees as follows:
Shareholder
service fees
--------------------------------------------------------------------------------
Tax-Exempt Portfolio $ 870,299
--------------------------------------------------------------------------------
Officers and Trustees. Certain officers or trustees of the Fund are also
officers or directors of Scudder Kemper. During the year ended April 30, 2000,
the Portfolio made no payments to their officers and incurred trustees' fees to
independent trustees as follows:
Trustees' fees
--------------------------------------------------------------------------------
Tax-Exempt Portfolio $ 15,935
--------------------------------------------------------------------------------
Expense Absorption. Scudder Kemper has agreed temporarily to limit the
Portfolio's operating expenses to the following percentages of average daily net
assets: Tax-Exempt Portfolio Premier Money Market shares (1.00%) and Service
shares (0.95%).
15 | Tax Exempt Portfolio
<PAGE>
3. Expense Off-Set Arrangements
The Fund has entered into an arrangement with its custodian and transfer agent
whereby credits realized as a result of uninvested cash balances were used to
reduce a portion of each Portfolio's expenses. During the period, the Tax-Exempt
Portfolio custody and transfer agent fees were reduced as follows:
Custodian Transfer Agent
--------------------------------------------------------------------------
Tax-Exempt Portfolio -- $ 3,382
--------------------------------------------------------------------------
4. Line of Credit
The Fund and several Kemper Funds (the "Participants") share in a $750 million
revolving credit facility for temporary or emergency purposes, including the
meeting of redemption requests that otherwise might require the untimely
disposition of securities. The Participants are charged an annual commitment fee
which is allocated pro rata among each of the Participants. Interest is
calculated based on the market rates at the time of the borrowing. The Portfolio
may borrow up to a maximum of 33 percent of its net assets under the agreement.
16 | Tax Exempt Portfolio
<PAGE>
Report of Independent Auditors
The Board of Trustees and Shareholders
Cash Account Trust
We have audited the accompanying statements of assets and liabilities, including
the portfolio of investments, of Cash Account Trust -- Tax-Exempt Portfolio, as
of April 30, 2000, and the related statements of operations for the year then
ended and changes in net assets for each of the two years in the period then
ended, and the financial highlights for the fiscal periods indicated herein.
These financial statements and financial highlights are the responsibility of
the Trusts' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of April 30, 2000, by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Cash
Account Trust -- Tax-Exempt Portfolio at April 30, 2000, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the fiscal periods indicated herein, in conformity with accounting principles
generally accepted in the United States.
Chicago, Illinois /s/Earnst & Young LLP
June 2, 2000
17 | Tax Exempt Portfolio
<PAGE>
Tax Information
For the Tax-Exempt Portfolio, of the dividends paid from net investment income
for the taxable year ended April 30, 2000, 100% are designated as exempt
interest dividends for federal tax purposes.
18 | Tax Exempt Portfolio
<PAGE>
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intentionally
left blank.
<PAGE>
Principal Underwriter
Kemper Distributors, Inc.
222 South Riverside Plaza
Chicago, IL 60606
This report is not to be
distributed unless preceded
or accompanied by a
Tax-Exempt Portfolio
prospectus.
