BT ALEX. BROWN
CASH RESERVE FUND, INC.
Prime Series
Treasury Series
Tax-Free Series
Semi-Annual Report
September 30, 1998
[BT Alex. Brown Logo Appears Here]
<PAGE>
Fund Features
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o Daily Dividends
The Fund declares dividends daily and distributes them monthly in the form of
additional shares.
o Check Redemption Privilege
After completing an authorization form, you may redeem your shares by writing
a check (in a minimum amount of $500) on your account. You will continue to
earn dividends until your check reaches the bank for clearance.
o No Sales Charge and Immediate Liquidity
You may buy or redeem shares in your account at any time. There is no sales
charge or penalty imposed by the Fund for the purchase or redemption of
shares.
o Constant Net Asset Value
The Fund will attempt to maintain a constant net asset value of $1.00 per
share and has done so since its inception on August 11, 1981. Although the
Fund seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund. An investment in a money
market fund is neither insured nor guaranteed by the Federal Deposit Insurance
Corporation or any other government agency.
o Minimum Investment
The minimum initial investment is $1,500. Subsequent investments may be made
in an amount of $100 or more.
o Current Yield Information Available
For current yield information, call (410) 895-5995.
<PAGE>
Letter to Shareholders
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October 29, 1998
We are pleased to report on the progress of your Fund for the six months
ended September 30, 1998. At the end of the period, the Fund's net assets
totaled $5,273,368,538, an increase of more than 8% from September 30, 1997. The
distribution of the Fund's assets among its three series is illustrated in the
following pie chart.
[PIE CHART APPEARS HERE -- PLOT POINTS BELOW]
Prime Series Treasury Series Tax-Free Series
------------ --------------- ---------------
$3.5 billion $881 million $883 million
MARKET ACTIVITY
The money markets were dominated by two major forces during the semi-annual
period--foreign activity and Federal Reserve Board policy. As for the former,
the hangover effects of the Asian financial crises, which began in Korea,
Indonesia, and Thailand, spread to China and Japan. Russia devalued its ruble
and defaulted on its debt payments, despite an International Monetary Fund (IMF)
bailout attempt in August. And focus is now on Brazil, where IMF and World Bank
funding is pending to ward off a potential devaluation. All of this supported a
flight to quality and, in particular, a U.S. Treasury rally.
As for Federal Reserve Board activity, anticipation of an official move
impacted the markets just as much as the actual policy change that came at the
very end of the six-month period. To be specific, in May, the markets were
watching continued weakness in the Asian markets and Fed intervention on behalf
of the Japanese yen. The consensus was that the robust U.S. economy might
outweigh Asian concerns and force a tightening of monetary policy. This was not
the case. The Fed did not make any adjustments to interest rates at either its
May or July meetings. Still, Chairman Alan Greenspan noted in July that
inflation seemed to have stopped falling and that history would support
significant declines in the stock market. Then, based on initial signs of U.S.
economic weakness for the month of August, namely the first slowdown in
employment in a long while, anticipation began to run high that the Fed would
have to ease its official monetary policy at its next meeting. In fact, the
Federal Reserve Board did lower the fed funds rate by 0.25% on September 29th,
bringing it to 5.25%.
Money markets also benefited over the semi-annual period from volatility in
the equity markets. This volatility led to a rally in the U.S. fixed income
market in general and to strong cash inflows into the money markets in
particular. Investors moved assets from equity funds, both domestic and foreign,
seeking both the greater liquidity and the perceived safety of the money
markets.
1
<PAGE>
Letter to Shareholders (continued)
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Historical Yield Chart
(For the six month period ended September 30, 1998)
[GRAPHIC APPEARS HERE -- PLOT POINTS BELOW]
Prime Treasury Tax-Free
Series Series Series
------ -------- --------
3/31/98 4.94% 4.70% 2.78%
4/30/98 4.95 4.67 3.16
5/31/98 4.96 4.57 3.18
6/30/98 4.97 4.55 3.02
7/30/98 4.98 4.56 2.89
8/31/98 4.97 4.52 2.81
9/30/98 4.91 4.48 2.89
Even with all of these turbulent forces, the money market yield curve
remained flat through mid-September, when an inversion at the short portion of
the curve began. Usually, it takes four to six weeks for a cut in interest rates
by the Federal Reserve Board to fully impact money market yields. However, this
time yields began to drop even before the September meeting, as the ease in
policy became more evident. As of September 30, the yield spread between 30 day
and 90-day commercial paper had inverted to -0.20%. The only exception to this
trend was in the tax-exempt market, where September 15th is the corporate tax
deadline, and thus short-term yields increased dramatically, as dealers
cheapened inventory to offset usual seasonal corporate selling.
INVESTMENT REVIEW
We continue to manage the Fund conservatively, maintaining high portfolio
quality, adjusting weighted average maturities in response to market conditions,
and strictly limiting exposure to any particular issue. Evidence of our
insistence on these unusually high investment standards can be found in Standard
& Poor's (S&P) ratings of each Fund Series. The Prime and Tax-Free Series each
maintain a "AAAm" rating and the Treasury Series maintains a "AAAm-G" rating.
These ratings are the highest that S&P awards to money market funds. We have
always believed that a money fund is not a place to take chances or to speculate
for additional yield. At the same time, we are pleased to have generated
competitive returns for each of the Fund's Series, as seen in the table below.
2
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
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Performance Comparisons
(For the 7-day yield at September 30, 1998)
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BT Alex. Brown Cash Reserve Fund Prime Series 4.98%
First Tier Money Fund Average 4.99%
- --------------------------------------------------------------------------------
BT Alex. Brown Cash Reserve Fund Treasury Series 4.50%
100% U.S. Treasury Money Fund Average 4.63%
- --------------------------------------------------------------------------------
BT Alex. Brown Cash Reserve Fund Tax-Free Series 3.24%
Tax-Free Money Fund Average 3.20%
- --------------------------------------------------------------------------------
Source: IBC/Donoghue, Inc. "Money Fund Report," October 1998.
The yields shown represent past performance, which is no guarantee of future
results. The Money Fund Averages are average yields of all funds in their
respective categories.
Prime Series
Our strategy in this Series continued to be concentrated on finding high
quality issues in which to invest. For most of the semi-annual period, at least
90% of the Series was invested in A-1+ rated securities and between 5% and 10%
in A1 rated commercial paper. It is well worth noting that A1 issues had a
slight yield advantage over A1+ issues over the six months. We maintained a
weighted average maturity of 45 to 50 days for most of the period. However, we
did extend a bit in early to-mid August with longer-term Agency Discount Notes,
in response to the lack of high quality short-term commercial paper supply in
the market during that time.
Treasury Series
U.S. Treasuries were the primary beneficiaries of the high-volume flight to
quality, as investors sought relative stability and a haven of safety from
global economic turmoil. We maintained a weighted average maturity within the 48
to 55 day range in this Series, which was reasonably neutral to the benchmark.
Between 25% to 45% of the portfolio was invested in short-term Treasury coupons.
With a yield advantage of 0.10% to 0.20%, these Treasury coupons gave us the
best opportunity for yield advantage without sacrificing liquidity.
Tax-Free Series
We adjusted the weighted average maturity within a wider range in this Series
compared to the other two Series, given annual seasonal phenomenon within the
tax-free sector. For example, in April, the short end of the municipal money
market curve became very attractive based on outflows associated with tax
season. The Fund was able to take advantage of these higher rates due to its
large percentage of variable rate holdings and its short average maturity at the
time of 28 days. The Fund extended its average maturity in May and June to
offset some of the pressures on fixed rate paper associated with the beginning
of annual note sea-
3
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
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son for many municipalities. This strategy proved to be effective, as one year
notes rallied 0.15% by the end of the second calendar quarter. In July and
August, the Fund maintained its weighted average maturity around the 44-45 day
mark. In September, the Fund extended to 50 days to take advantage of the market
rally that continued from mid-August based on both the sell-off in equities and
the Federal Reserve Board's easing of monetary policy on September 29th.
LOOKING AHEAD
Going forward, the U.S. money markets will likely continue to be dominated by
the rate of U.S. economic growth and by the impact on the U.S of global economic
and political events, including those of Russia, Japan, and Brazil. President
Clinton's woes will also likely play a role. But the real focus of the money
markets will be on the Federal Reserve Board's response to all of these factors.
We believe the markets have already discounted at least 1.00% of easing in
monetary policy through a series of incremental 0.25% rate cuts over the next
six to nine months. The concern, as we look ahead, is one of a credit crunch,
precipitated by poor bank earnings and a substantial retraction of available
credit.
For the near term, though, the economic backdrop remains positive. We have
only begun to see slower, non-recessionary growth. The labor market remains
tight with unemployment at a low 4.6%. Interest rates remain favorable at
historically low levels. There are still no real signs of inflation, and
fiscally, the government is running a surplus for the first time in almost
thirty years, so there is room for Congress to either cut taxes and/or increase
spending.
Given this backdrop and until both domestic and global events run their
course, we intend to remain reasonably neutral to the benchmarks in terms of
average weighted maturity in the Prime and Treasury Series. To take advantage of
the incremental yield short-term bonds are currently offering over one-year
notes, we intend to extend the average weighted average maturity in the Tax-Free
Series to approximately 55 days. In each of our Series, we will continue to
concentrate the portfolios in very high quality credits and to maintain our
conservative investment strategies and standards for the foreseeable future.
We continue to believe that the conservative approach we apply to investing
on behalf of the Fund's Series will provide comfort, as well as competitive
yields, to our shareholders.
As always, we appreciate your continued support.
Sincerely,
/s/ Richard T. Hale
_______________________
Richard T. Hale
Chairman
4
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BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Rating
-------------- Par
PRIME SERIES S&P Moody's (000) Value
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Commercial Paper -- 82.1%(a)
Automotive Finance - 5.7%
PACCAR Financial Corp.
5.48% 10/16/98 A-1+ P-1 $40,000 $ 39,908,667
5.49% 10/22/98 A-1+ P-1 15,000 14,951,962
5.48% 11/20/98 A-1+ P-1 14,000 13,893,444
Toyota Motor Credit Corp.
5.50% 10/2/98 A-1+ P-1 25,000 24,996,181
5.48% 10/13/98 A-1+ P-1 15,000 14,972,600
5.45% 10/19/98 A-1+ P-1 40,000 39,891,000
5.25% 10/26/98 A-1+ P-1 30,000 29,890,625
5.45% 11/12/98 A-1+ P-1 20,000 19,872,833
------------
198,377,312
------------
Beverages - 5.8%
Anheuser Busch Companies, Inc.
5.45% 10/9/98 A-1 P-1 25,000 24,895,278
Coca-Cola Co.
5.45% 10/9/98 A-1+ P-1 25,000 24,969,722
5.47% 11/3/98 A-1+ P-1 20,000 19,899,717
5.35% 11/10/98 A-1+ P-1 25,000 24,851,389
5.27% 12/9/98 A-1+ P-1 25,000 24,747,479
PepsiCo, Inc.
5.47% 11/30/98 A-1 P-1 30,000 29,726,500
5.40% 12/14/98 A-1 P-1 35,000 34,611,500
5.46% 12/14/98 A-1 P-1 20,000 19,775,533
------------
203,477,118
------------
Chemicals, General - 3.7%
E.I. duPont de Nemours and Co.
5.48% 10/9/98 A-1+ P-1 50,000 49,939,111
5.50% 10/27/98 A-1+ P-1 25,000 24,900,694
5.46% 10/29/98 A-1+ P-1 15,000 14,936,300
5.47% 11/19/98 A-1+ P-1 40,000 39,702,189
------------
129,478,294
------------
Chemicals, Specialty - 1.6%
Minnesota Mining & Manufacturing
5.45% 10/21/98 A-1+ P-1 30,000 29,909,167
5.33% 12/21/98 A-1+ P-1 27,000 26,676,203
------------
56,585,370
------------
Electrical & Electronics - 4.3%
Emerson Electric Co.
5.40% 11/6/98 A-1+ P-1 8,165 8,120,909
General Electric Co.
5.47% 11/20/98 A-1+ P-1 14,906 14,792,756
</TABLE>
5
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Rating
-------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Commercial Paper (continued)
Electrical & Electronics (concluded)
Motorola Inc.
5.32% 10/6/98 A-1+ P-1 $15,000 $ 14,988,917
5.46% 10/13/98 A-1+ P-1 20,000 19,963,600
5.48% 10/13/98 A-1+ P-1 15,000 14,972,600
5.13% 12/17/98 A-1+ P-1 30,000 29,670,825
5.45% 12/17/98 A-1+ P-1 25,000 24,708,576
5.10% 12/28/98 A-1+ P-1 25,000 24,688,333
------------
151,906,516
------------
Electric Utility - 2.6%
Duke Energy Co.
5.45% 10/20/98 A-1 P-1 25,000 24,928,091
5.48% 10/20/98 A-1 P-1 35,000 34,898,772
5.48% 11/6/98 A-1 P-1 30,000 29,835,600
------------
89,662,463
------------
Finance, Commercial - 0.4%
CIT Group Holdings
5.48% 10/7/98 A-1 P-1 15,000 14,986,300
------------
14,986,300
------------
Finance, Consumer - 3.2%
USAA Capital Corp.
5.48% 10/1/98 A-1+ P-1 30,000 30,000,000
5.49% 10/16/98 A-1+ P-1 35,000 34,919,938
5.50% 10/23/98 A-1+ P-1 22,000 21,926,056
5.49% 10/30/98 A-1+ P-1 25,000 24,889,437
------------
111,735,431
------------
Finance, Diversified - 4.2%
General Electric Capital Corp.
5.47% 10/5/98 A-1+ P-1 25,000 24,984,806
5.46% 10/26/98 A-1+ P-1 25,000 24,904,687
5.50% 10/26/98 A-1+ P-1 10,000 9,961,806
5.49% 11/17/98 A-1+ P-1 25,000 24,820,813
5.47% 11/20/98 A-1+ P-1 20,000 19,848,055
5.37% 12/18/98 A-1+ P-1 20,000 19,767,300
5.25% 1/22/99 A-1+ P-1 25,000 24,588,021
------------
148,875,488
------------
Food - 9.1%
Campbell Soup Co.
5.35% 10/5/98 A-1+ P-1 35,000 34,979,194
5.48% 10/13/98 A-1+ P-1 23,500 23,457,073
5.48% 11/6/98 A-1+ P-1 30,000 29,835,600
</TABLE>
6
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
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<TABLE>
<CAPTION>
Rating
-------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Commercial Paper (continued)
Food - concluded
H.J. Heinz
5.48% 10/1/98 A-1 P-1 $12,000 $ 12,000,000
5.49% 10/6/98 A-1 P-1 34,200 34,173,923
5.48% 10/19/98 A-1 P-1 20,000 19,945,200
5.40% 11/12/98 A-1 P-1 30,000 29,811,000
Hershey Foods Corp.
5.51% 10/22/98 A-1 P-1 25,000 24,919,646
5.48% 11/2/98 A-1 P-1 15,000 14,926,933
Kellogg Company
5.30% 12/3/98 A-1+ P-1 20,975 20,780,457
5.33% 12/10/98 A-1+ P-1 25,000 24,740,903
Sara Lee Corp.
5.20% 10/28/98 A-1+ P-1 50,000 49,805,000
------------
319,374,929
------------
Household Products - 3.7%
Procter & Gamble Co.
5.48% 10/19/98 A-1+ P-1 25,000 24,931,500
5.49% 10/28/98 A-1+ P-1 20,000 19,917,650
5.45% 12/1/98 A-1+ P-1 47,000 46,565,968
5.45% 1/4/99 A-1+ P-1 40,000 39,424,722
------------
130,839,840
------------
Insurance, Brokerage - 1.4%
Marsh & McLennan Companies Inc.
5.28% 10/20/98 A-1+ P-1 20,000 19,944,267
5.30% 10/20/98 A-1+ P-1 10,000 9,972,027
5.41% 11/5/98 A-1+ P-1 20,000 19,894,806
------------
49,811,100
------------
Insurance, Property & Casualty - 2.0%
A.I. Credit Corp.
5.46% 10/7/98 A-1+ P-1 30,000 29,972,700
5.45% 11/4/98 A-1+ P-1 40,000 39,794,111
------------
69,766,811
------------
Natural Gas - 2.9%
Consolidated Natural Gas
5.49% 10/2/98 A-1+ P-1 40,000 39,993,900
5.49% 10/13/98 A-1+ P-1 19,320 19,284,644
5.49% 10/20/98 A-1+ P-1 23,000 22,933,358
5.20% 11/6/98 A-1+ P-1 20,000 19,896,000
------------
102,107,902
------------
Integrated Oil - 4.3%
Amoco Co.
5.47% 10/27/98 A-1+ P-1 50,000 49,802,472
5.45% 10/28/98 A-1+ P-1 25,000 24,897,813
5.47% 11/17/98 A-1+ P-1 25,000 24,821,465
</TABLE>
7
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Rating
-------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Commercial Paper (continued)
Integrated Oil (concluded)
Shell Oil Co.
5.46% 10/29/98 A-1+ P-1 $50,000 $ 49,787,667
------------
149,309,417
------------
Oil Transportation - 2.6%
Colonial Pipeline Co.
5.40% 10/13/98 A-1+ P-1 15,000 14,973,000
5.52% 10/27/98 A-1+ P-1 15,000 14,940,200
5.47% 11/6/98 A-1+ P-1 12,500 12,431,625
5.45% 12/4/98 A-1+ P-1 10,000 9,903,111
5.35% 12/9/98 A-1+ P-1 17,500 17,320,552
5.45% 1/22/98 A-1+ P-1 10,200 10,025,509
5.28% 3/8/98 A-1+ P-1 12,500 12,210,333
------------
91,804,330
------------
Paper Products - 1.7%
Kimberly-Clark Corp.
5.50% 10/16/98 A-1+ P-1 40,000 39,908,333
5.32% 12/18/98 A-1+ P-1 20,000 19,769,467
------------
59,677,800
------------
Pharmaceuticals - 4.5%
Abbott Laboratories
5.45% 10/14/98 A-1+ P-1 80,000 79,842,556
Pfizer Inc.
5.43% 10/9/98 A-1+ P-1 20,000 19,975,867
Warner-Lambert Co.
5.13% 3/11/99 A-1+ P-1 30,000 29,311,725
5.15% 3/22/99 A-1+ P-1 30,000 29,261,833
------------
158,391,981
------------
Publishing - 1.2%
Gannett Co., Inc.
5.45% 10/9/98 A-1+ P-1 27,300 27,266,937
McGraw-Hill, Inc.
5.48% 11/9/98 A-1 P-1 13,965 13,882,094
------------
41,149,031
------------
Structured Finance - 9.4%
CIESCO, L.P.
5.50% 10/21/98 A-1+ P-1 50,000 49,847,222
5.49% 10/23/98 A-1+ P-1 20,000 19,932,900
5.50% 10/23/98 A-1+ P-1 30,000 29,899,167
5.50% 11/13/98 A-1+ P-1 15,000 14,901,459
</TABLE>
8
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Rating
-------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Commercial Paper (continued)
Structured Finance (concluded)
Corporate Receivables Corp.
5.50% 10/7/98 A-1 P-1 $ 25,000 $ 24,977,083
5.49% 10/23/98 A-1 P-1 25,000 24,916,125
5.49% 11/6/98 A-1 P-1 15,000 14,917,650
5.26% 11/13/98 A-1 P-1 15,000 14,905,758
5.46% 11/23/98 A-1 P-1 15,000 14,879,425
5.28% 12/3/98 A-1 P-1 20,000 19,815,200
5.36% 12/4/98 A-1 P-1 25,000 24,761,778
Corporate Asset Fund Co., Inc.
5.50% 11/3/98 A-1+ P-1 40,000 39,798,333
5.45% 11/18/98 A-1+ P-1 35,000 34,745,666
--------------
328,297,766
--------------
Telephone - 7.8%
Ameritech Capital Funding Corp.
5.48% 10/13/98 A-1+ P-1 57,700 57,594,601
5.44% 11/9/98 A-1+ P-1 20,000 19,882,133
5.44% 11/10/98 A-1+ P-1 30,000 29,818,667
Ameritech Corp.
5.25% 10/22/98 A-1+ P-1 15,000 14,954,063
BellSouth Telecommunications, Inc.
5.44% 10/27/98 A-1+ P-1 36,000 35,858,560
5.48% 10/27/98 A-1+ P-1 36,000 35,857,520
SBC Communications Inc.
5.46% 10/15/98 A-1+ P-1 50,000 49,893,833
5.46% 10/22/98 A-1+ P-1 15,000 14,952,225
5.38% 11/17/98 A-1+ P-1 15,000 14,894,642
--------------
273,706,244
--------------
Total Commercial Paper 2,879,321,443
--------------
Variable Rate Notes -- 3.6%
Associates Corp Master Note
5.497%(b) 12/1/98 A-1+ P-1 75,000 75,000,000
Coca-Cola Co. Master Note
5.122%(b) 3/8/99 A-1+ P-1 50,000 50,000,000
--------------
Total Variable Rate Notes 125,000,000
--------------
</TABLE>
9
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Rating
-------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Federal Home Loan Bank -- 4.1%
FHLB
5.34% 1/20/99 AAA -- $ 41,656 $ 40,970,134
5.13% 2/5/99 AAA -- 25,000 24,547,563
5.10% 2/25/99 AAA -- 19,120 18,721,826
5.09% 3/5/99 AAA -- 15,000 14,671,271
5.70% 7/7/99 AAA -- 15,000 15,000,000
5.53% 7/27/99 AAA -- 10,425 10,420,681
5.15% 9/30/99 AAA -- 20,000 20,000,000
--------------
Total Federal Home Loan Bank 144,331,475
--------------
Federal National Mortgage Association -- 4.0%
FNMA
Note
5.59% 11/18/98 -- P-1 20,000 20,000,000
5.56% 12/15/98 -- P-1 25,000 25,000,000
5.58% 1/15/99 -- P-1 35,000 35,000,000
5.50% 2/12/98 -- P-1 25,000 25,000,000
4.92% 6/18/99 -- P-1 20,000 19,289,333
5.70% 7/22/99 -- P-1 15,000 15,000,000
--------------
Total Federal National Mortgage Association 139,289,333
--------------
Repurchase Agreements -- 6.4%(c)
Goldman, Sachs & Co.
5.41%(d) 10/1/98 -- -- 124,500 124,500,000
Morgan Stanley & Co.
5.35%(e) 10/1/98 -- -- 100,000 100,000,000
--------------
Total Repurchase Agreements 224,500,000
--------------
TOTAL INVESTMENTS - 100.1% $3,512,442,251(f)
LIABILITIES IN EXCESS OF OTHER ASSETS, NET - (0.1%) (4,574,391)
--------------
NET ASSETS - 100.0% $3,507,867,860
==============
</TABLE>
10
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME SERIES (concluded)
- ----------------------------------------------------------------------------------------------
<S> <C>
Net Asset Value, Offering and Redemption Price Per:
Prime Share
($2,969,412,285 / 2,969,404,538 shares outstanding) $1.00
=====
Flag Investors Class A Share
($10,559,517 / 10,559,257 shares outstanding) $1.00
=====
Flag Investors Class B Share
($3,034,323 / 3,034,300 shares outstanding) $1.00
=====
Institutional Prime Share
($271,858,350 / 271,858,147 shares outstanding) $1.00
=====
Quality Cash Reserve Prime Share
($253,003,385 / 253,002,758 shares outstanding) $1.00
=====
</TABLE>
- ----------
(a) Most commercial paper is traded on a discount basis. In such cases, the
interest rate shown represents the rate of discount paid or received at time
of purchase by the Fund.
(b) Master note is payable upon demand by the Fund upon no more than five days'
notice. Interest rates on master notes are redetermined weekly. Rates shown
are the rates in effect on September 30, 1998.
(c) Collateral on repurchase agreements is taken into possession by the Fund
upon entering into the repurchase agreement. The collateral is marked to
market daily to insure market value as being at least 102 percent of the
resale price of the repurchase agreement.
(d) Dated 9/30/98 to be repurchased on 10/1/98, collateralized by U.S. Treasury
Notes with a market value of $126,990,955.
(e) Dated 9/30/98 to be repurchased on 10/1/98, collateralized by U.S. Treasury
Notes with a market value of $102,015,570.
(f) Aggregate cost for financial reporting and federal tax purposes.
MOODY'S RATINGS:
Aaa Bonds that are judged to be of the best quality.
P-1 Commercial paper bearing this designation is of the best quality.
S&P RATINGS:
AAA Obligations that are of the highest quality.
A-1 Commercial paper that has a strong degree of safety regarding timely
payment.
Those issues determined to possess very strong safety characteristics
are denoted with a plus (+) sign.
A detailed description of the above ratings can be found in the
Fund's Statement of Additional Information.
See Notes to Financial Statements.
11
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Maturity Par
TREASURY SERIES Date (000) Value
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. Treasury Securities -- 99.8%
U.S. Treasury Bills(a) - 78.8%
5.000% 10/1/98 $ 8,100 $ 8,100,000
4.980% 10/8/98 43,350 43,308,023
5.020% 10/8/98 24,400 24,376,183
5.030% 10/8/98 17,100 17,083,259
4.960% 10/15/98 19,850 19,811,712
4.980% 10/15/98 26,000 25,949,647
5.010% 10/15/98 25,000 24,951,243
4.950% 10/22/98 7,500 7,478,322
4.950% 10/22/98 13,900 13,859,864
4.960% 10/22/98 6,100 6,082,351
4.910% 10/29/98 10,600 10,559,479
4.920% 10/29/98 9,450 9,413,801
4.970% 11/5/98 34,700 34,532,163
5.000% 11/5/98 3,725 3,706,892
4.900% 11/12/98 14,800 14,715,307
4.970% 11/12/98 6,200 6,164,050
4.990% 11/12/98 39,000 38,772,955
5.020% 11/12/98 7,000 6,958,963
4.910% 11/19/98 51,400 51,056,491
4.920% 11/19/98 5,700 5,661,829
4.940% 11/19/98 14,500 14,402,504
4.890% 12/3/98 6,800 6,741,809
4.910% 12/3/98 13,600 13,483,023
4.930% 12/3/98 15,100 14,969,725
4.150% 12/10/98 59,000 58,523,903
4.500% 12/10/98 9,250 9,169,063
4.530% 12/10/98 2,825 2,800,116
4.570% 12/10/98 19,200 19,029,387
4.700% 12/10/98 26,000 25,762,389
4.770% 12/10/98 7,400 7,331,365
4.440% 12/17/98 12,500 12,381,158
4.640% 12/17/98 30,000 29,701,946
4.700% 12/17/98 6,600 6,533,652
4.820% 12/17/98 5,600 5,542,267
4.830% 12/17/98 3,500 3,463,842
4.840% 12/17/98 20,000 19,792,956
4.680% 12/24/98 3,400 3,362,832
4.680% 12/24/98 30,200 29,869,864
4.260% 1/7/99 40,000 39,535,589
------------
Total U.S. Treasury Bills 694,939,919
------------
</TABLE>
12
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Par
TREASURY SERIES (concluded) Date (000) Value
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. Treasury Securities (concluded)
U.S. Treasury Notes - 21.0%
5.500% 11/15/98 $ 20,000 $ 20,008,326
5.125% 11/30/98 35,000 35,004,507
5.625% 11/30/98 10,000 10,007,353
5.125% 12/31/98 65,000 65,110,698
5.000% 1/31/99 25,000 25,030,027
5.875% 1/31/99 30,000 30,132,508
------------
Total U.S. Treasury Notes 185,293,419
------------
TOTAL U.S. TREASURY SECURITIES 880,233,339
------------
TOTAL INVESTMENTS - 99.8% $880,233,339(b)
OTHER ASSETS LESS LIABILITIES, NET - 0.2% 1,350,019
------------
NET ASSETS - 100.0% $881,583,357
============
Net Asset Value, Offering and Redemption Price Per:
Treasury Share
($790,420,737 / 790,290,791 shares outstanding) $1.00
=====
Institutional Treasury Share
($91,162,620 / 91,145,136 shares outstanding) $1.00
=====
</TABLE>
- ------------
(a) U.S. Treasury bills are traded on a discount basis. In such cases, the
interest rate shown represents the yield at the date of purchase.
(b) Aggregate cost for financial reporting and federal tax purposes.
See Notes to Financial Statements.
13
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alabama -- 1.9%
Alabama Housing Finance Authority, Multi-
family Housing, Refunding RB (Heather-
brooke Project), (Guaranteed by FNMA),
Variable Rate Weekly Demand Note,
3.50%, 6/15/26(a) A-1+ -- $ 9,900 $ 9,900,000
Alabama Housing Finance Authority, Multi-
family Housing, Refunding RB (Rime
Village Hoover Project), (Guaranteed by
FNMA), Variable Rate Weekly Demand
Note, 3.50%, 6/15/26(a) A-1+ -- 5,800 5,800,000
North Alabama Environmental Improvement
Authority, Alabama, P.C.R., (LOC: Bank
of Nova Scotia), Variable Rate Daily
Demand Note, 4.10%, 12/1/00(a) -- P-1 1,000 1,000,000
------------
16,700,000
------------
Arkansas -- 0.2%
Arkansas State Development Finance
Authority Health Care Facilities, (Sisters
of Mercy Health), Series B, Variable Rate
Weekly Demand Note, 3.90%,
6/1/12(a) A-1+ VMIG-1 1,800 1,800,000
------------
1,800,000
------------
California -- 0.9%
California State, RANS, 4.00%,
6/30/99 SP-1+ MIG-1 8,000 8,050,550
------------
8,050,550
------------
Colorado -- 1.9%
Colorado Housing Finance Authority, Multi-
family Housing, (Silver Reef Project),
(Guaranteed by FNMA), Variable Rate
Weekly Demand Note, 3.70%,
10/15/16(a) A-1+ -- 9,490 9,490,000
Colorado Health Facilities Authority Revenue,
(Catholic Health), Series B, Variable Rate
Weekly Demand Note, 3.55%,
12/1/25(a) A-1+ VMIG-1 3,000 3,000,000
Colorado State, General Fund Revenue,
TRANS, Series A, 4.25%, 6/25/99 SP-1+ -- 4,000 4,021,026
------------
16,511,026
------------
</TABLE>
14
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Connecticut -- 1.2%
Connecticut, Health & Educational
Facilities Authority, (Yale
University), Tax Exempt Com-
mercial Paper, 3.55%, 10/22/98 A-1+ P-1 $ 3,765 $ 3,765,000
Connecticut, Health & Educational
Facilities Authority, (Yale University),
Tax Exempt Commercial Paper,
3.50%, 11/17/98 A-1+ P-1 7,000 7,000,000
------------
10,765,000
------------
Delaware -- 0.4%
Delaware State, G.O., Series B, 5.00%,
5/1/99 AA+ Aa1 1,500 1,511,248
Delaware State, G.O., Series B, 6.85%,
5/1/99 AA+ Aa1 1,750 1,780,311
------------
3,291,559
------------
Florida -- 0.3%
Florida State, Division of Bidding and
Finance Department, Environmental
Preservation 2000-B, (FSA Insured),
4.50%, 7/1/99 AAA Aaa 1,000 1,007,274
Tampa Health Facilities Authority RB,
(Lifelink Foundation Inc. Project),
(LOC: SunTrust Bank), Variable Rate
Weekly Demand Note, 4.05%,
8/1/22(a) -- Aa3 1,500 1,500,000
------------
2,507,274
------------
Georgia -- 9.3%
Cobb County, Georgia, Housing
Authority, (Post Mill Project),
(Guaranteed by FNMA), Variable
Rate Weekly Demand Note, 3.50%,
6/1/25(a) A-1+ -- 9,380 9,380,000
Columbus County, Georgia, Housing
Authority Revenue, (Columbus State
University Foundation, Inc.), (LOC:
SunTrust Bank), Variable Rate Weekly
Demand Note, 4.05%, 11/7/17(a) -- Aa3 2,300 2,300,000
</TABLE>
15
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Georgia (continued)
De Kalb County, Georgia, Housing
Authority, Multifamily Housing,
(Camden Brooke Project), (Guaranteed
by FNMA), Variable Rate Weekly De-
mand Note, 3.65%, 6/15/25(a) A-1+ -- $ 5,400 $ 5,400,000
De Kalb County, Georgia, Housing
Authority, Multifamily Housing, (Clair-
mont Crest Project), (Guaranteed by
FNMA), Variable Rate Weekly Demand
Note, 3.65%, 6/15/25(a) A-1+ -- 1,400 1,400,000
De Kalb County, Georgia, Housing
Authority, Multifamily Housing, (Post
Ashford Project), (Guaranteed by
FNMA), Variable Rate Weekly Demand
Note, 3.50%, 6/1/25(a) A-1+ -- 7,895 7,895,000
Fulton County, Georgia, Development
Authority Revenue (Georgia Tech
Athletic Association Project), (LOC:
SunTrust Bank), Variable Rate Weekly
Demand Note, 4.05%, 7/1/14(a) -- Aa3 8,050 8,050,000
Fulton County, Georgia, TANS, 4.25%,
12/31/98 SP-1+ MIG-1 6,000 6,009,029
Georgia Municipal Gas Authority, (Agency
Project), Series A, (LOC: ABN AMRO
Bank N.V. 8.76%, Morgan Guaranty
24.56%, Wachovia Bank 24.56%,
Credit Suisse First Boston 24.56%,
Bayerische Landesbank 17.56%),
Variable Rate Weekly Demand Note,
3.60%, 11/1/06 A-1+ -- 4,000 4,000,000
Georgia State, G.O., Series A, 5.80%,
3/1/99 AAA Aaa 3,500 3,532,096
Georgia State, G.O., Series A, 7.70%,
2/1/99 AAA Aaa 1,500 1,521,396
Georgia State, G.O., Series A, 7.25%,
9/1/99 AAA Aaa 5,660 5,843,853
Macon-Bibb County, Georgia, Hospital
Authority Revenue, (Medical Center of
Central Georgia), (LOC SunTrust
Bank), Variable Rate Weekly Demand
Note, 4.05%, 08/1/18(a) -- Aa3 3,000 3,000,000
</TABLE>
16
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Georgia (concluded)
Municipal Electric Authority, Georgia,
(LOC: ABN AMRO Bank N.V.), Variable
Rate Weekly Demand Note, 3.60%,
1/1/26(a) A-1+ VMIG-1 $ 8,585 $ 8,585,000
Roswell Housing Authority, Multifamily
Housing, (Post Canyon Project),
(Guaranteed by FNMA), Variable Rate
Weekly Demand Note, 3.50%,
6/1/25(a) A-1+ -- 5,500 5,500,000
Smyrna Housing Authority, Multifamily
Housing, (F&M Villages Project),
(Guaranteed by FNMA), Variable Rate
Weekly Demand Note, 3.50%,
6/6/25(a) A-1+ -- 9,700 9,700,000
------------
82,116,374
------------
Idaho -- 0.5%
Idaho State, TANS, 4.50%, 6/30/99 SP-1+ MIG-1 4,000 4,032,640
------------
4,032,640
------------
Illinois -- 12.8%
Illinois Development Finance Authority
Revenue, (Chicago Symphony
Orchestra), (LOC: Northern Trust),
Variable Rate Weekly Demand Note,
3.55%, 12/1/28(a) A-1+ VMIG-1 11,300 11,300,000
Illinois Development Finance Authority
Revenue, (Fenwick High School Project),
(LOC: Northern Trust), Variable Rate
Weekly Demand Note, 3.65%,
3/1/32(a) A-1+ -- 8,200 8,200,000
Illinois Development Finance Authority,
P.C.R., (Commonwealth Edison
Company Project), Series C, (LOC:
ABN AMRO Bank N.V.), Variable Rate
Weekly Demand Note, 3.65%,
3/1/09(a) A-1+ P-1 7,700 7,700,000
Illinois Development Finance Authority,
P.C.R., (Illinois Power Company
Project), Series A, (LOC: Canadian
Imperial Bank), Variable Rate Weekly
Demand Note, 3.55%,
11/1/28(a) A-1+ VMIG-1 2,500 2,500,000
</TABLE>
17
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Illinois (continued)
Illinois Development Finance Authority,
(Provena Health), Series C, (MBIA
Insured), Variable Rate Weekly Demand
Note, 3.60%, 5/1/28(a) A-1+ VMIG-1 $ 3,000 $ 3,000,000
Illinois Development Finance Authority,
P.C.R., (Illinois Power Company
Project), Series B, ( LOC: Canadian
Imperial Bank), Variable Rate Weekly
Demand Note, 3.50%, 11/1/28(a) A-1+ VMIG-1 2,700 2,700,000
Illinois Development Finance Authority,
P.C.R., (Illinois Power Company
Project), Series C, (LOC: Canadian
Imperial Bank), 3.55%, 11/1/28,
Mandatory Put - 11/05/98 @ $100 A-1+ VMIG-1 15,000 15,000,000
Illinois Educational Facilities Authority,
(Field Museum of Natural History),
(LOC: Northern Trust), 3.65%,
11/1/25, Mandatory Put-
1/28/99 @ $100 -- VMIG-1 10,000 10,000,000
Illinois Health Facilities Authority, (North-
western Memorial Hospital), Variable
Rate Daily Demand Note, 4.10%,
08/15/25(a) A-1+ VMIG-1 2,000 2,000,000
Illinois Health Facilities Authority,
(Gottlieb Health Resources, Inc.),
(LOC: Harris Trust and Savings Bank),
Variable Rate Weekly Demand Note,
3.65%, 11/15/25(a) -- VMIG-1 6,300 6,300,000
Illinois Health Facilities Authority,
(Gottlieb Health Resources, Inc.),
(LOC: Harris Trust and Savings Bank),
Variable Rate Weekly Demand Note,
3.65%, 11/15/24(a) -- VMIG-1 2,500 2,500,000
Illinois Health Facilities Authority, Re-
volving Fund, Pooled Financing
Program (University of Chicago
Project), 3.75%, 8/1/15, Mandatory
Put - 11/4/98 @ $100 A-1+ VMIG-1 15,000 15,000,000
Illinois Health Facilities Authority, Series A,
(Evanston Hospital Corp. Project),
3.90%, 3/15/25, Mandatory Put -
10/15/98 @ $100 A-1+ VMIG-1 16,000 16,000,000
</TABLE>
18
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Illinois (concluded)
Illinois Health Facilities Authority,
(Evanston Hospital Corp. Project),
3.70%, 08/15/30, Mandatory Put -
7/15/99 @ $100 A-1+ VMIG-1 $ 5,000 $ 5,000,000
Illinois State, G.O., (MBIA Insured),
5.375%, 5/1/99 AAA Aaa 5,000 5,052,769
Schaumburg, Illinois, Series A, Variable
Rate Weekly Demand Note, 3.60%,
12/1/13(a) A-1+ VMIG-1 1,200 1,200,000
------------
113,452,769
------------
Indiana -- 2.9%
Indiana Health Facilities Authority,
(Charity Obligated Group), Series F,
Variable Rate Weekly Demand Note,
3.45%, 11/1/26(a) A-1+ VMIG-1 1,800 1,800,000
Purdue University, Student Fee Bonds,
Series K, Variable Rate Weekly Demand
Note, 3.55%, 7/1/20(a) A-1+ VMIG-1 16,660 16,660,000
Purdue University, Student Fee Bonds,
Series L, Variable Rate Weekly Demand
Note, 3.55%, 7/1/20(a) A-1+ VMIG-1 7,000 7,000,000
------------
25,460,000
------------
Iowa -- 0.3%
Polk County, Iowa, (Catholic Health),
Series B, Variable Rate Weekly Demand
Note, 3.55%, 12/1/15(a) A-1+ VMIG-1 3,000 3,000,000
------------
3,000,000
------------
Kentucky -- 0.6%
Kentucky Asset/Liability Commission,
General Fund, TRANS, Series B, 4.00%,
6/25/99 A-1+ MIG-1 2,500 2,511,972
Kentucky Economic Development Finance
Authority Hospital Facilities, (Baptist
Health Care System), (LOC: Canadian
Imperial Bank), Variable Rate Weekly
Demand Note, 3.50%, 8/15/31(a) A-1+ -- 3,100 3,100,000
------------
5,611,972
------------
</TABLE>
19
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Louisiana -- 1.6%
East Baton Rouge Parish, Louisiana,
P.C.R., (Georgia Pacific Corp.),
(LOC: Toronto Dominion Bank),
Variable Rate Weekly Demand Note,
3.90%, 10/1/99(a) -- P-1 $ 3,800 $ 3,800,000
Louisiana Offshore Terminal Authority,
Deepwater Port Revenue, First Stage
1991A (Loop Inc.), (LOC: Morgan
Guaranty), Variable Rate Weekly
Demand Note, 3.50%,
9/1/17(a) A-1+ VMIG-1 10,710 10,710,000
------------
14,510,000
------------
Maryland -- 5.9%
Baltimore County, Maryland, Metropolitan
District 61st Issue, G.O. 6.75%,
4/1/99 AAA Aaa 1,000 1,014,620
Community Development Administration
Multifamily Development, (Avalon
Ridge Apartments Project),
(Guaranteed by FNMA), Variable Rate
Weekly Demand Note, 3.50%,
6/15/26(a) -- VMIG-1 10,000 10,000,000
Community Development Administration
Multifamily Development, (Avalon Lea
Apartments Project), (Guaranteed by
FNMA), Variable Rate Weekly Demand
Note, 3.50%, 6/15/26(a) -- VMIG-1 6,000 6,000,000
Frederick County, Maryland, BANS,
Variable Rate Weekly Demand Note,
3.60%, 10/1/07(a) A-1+ VMIG-1 3,000 3,000,000
Howard County, Maryland, Tax Exempt
Commercial Paper, 3.10%, 10/9/98 A-1+ P-1 10,000 10,000,000
Maryland State, G.O., 6.70%, 7/15/99 AAA Aaa 1,000 1,023,698
Maryland State Health & Higher
Educational Facilities Authority,
(Charity Obligated Group), Series F,
Variable Rate Weekly Demand Note,
3.45%, 11/1/17(a) A-1+ VMIG-1 1,000 1,000,000
</TABLE>
20
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Maryland (concluded)
Maryland State Health & Higher
Educational Facilities Authority,
(Catholic Health), Series B, Variable
Rate Weekly Demand Note, 3.55%,
12/1/15(a) A-1+ VMIG-1 $ 3,000 $ 3,000,000
Montgomery County, Maryland, Tax
Exempt Commercial Paper,
3.45%, 10/7/98 A-1+ P-1 4,000 4,000,000
Montgomery County, Maryland, G.O.,
Series A, 4.875%, 5/1/99 AAA Aaa 4,060 4,086,958
Washington Suburban Sanitary District,
G.O., (LOC: Westdeutsche Landes-
bank), Variable Rate Weekly Demand
Note, 3.60%, 8/1/04(a) A-1+ VMIG-1 5,000 5,000,000
Washington Suburban Sanitary District,
Sewer Disposal, G.O., 5.90%,
11/1/98 AA Aa1 2,500 2,500,000
Washington Suburban Sanitary District,
Water Supply, G.O., 4.00%,
6/1/99 AA Aa1 1,200 1,202,308
------------
51,827,584
------------
Massachusetts -- 1.1%
Massachusetts State, G.O., Series A,
Variable Rate Weekly Demand Note,
3.90%, 9/1/16(a) A-1+ VMIG-1 8,000 8,000,000
Massachusetts State, G.O., Series B,
Variable Rate Weekly Demand Note,
3.90%, 9/1/16(a) A-1+ VMIG-1 2,000 2,000,000
------------
10,000,000
------------
Michigan -- 4.1%
Detroit Michigan Water Supply System,
(FGIC Insured), Variable Rate Weekly
Demand Note, 3.55%, 7/1/13(a) A-1+ VMIG-1 2,000 2,000,000
Michigan State, Strategic Fund, (Consumer
Power Project), P.C.R., (LOC: Canadian
Imperial Bank), Variable Rate Daily
Demand Note, 4.10%, 6/15/10(a) A-1+ Aa3 1,100 1,100,000
</TABLE>
21
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Michigan (concluded)
Michigan State, Strategic Fund, (Consumer
Power Project), P.C.R., (LOC: Union
Bank of Switzerland), Variable Rate
Daily Demand Note,
4.10%, 4/15/18(a) -- P-1 $ 3,900 $ 3,900,000
Michigan State Hospital Finance Authority,
(Charity Obligated Group), Variable
Rate Weekly Demand Note, 3.45%,
11/1/11(a) A-1+ VMIG-1 3,500 3,500,000
Michigan State Hospital Finance Authority,
(Charity Obligated Group), Variable
Rate Weekly Demand Note, 3.45%,
11/1/18(a) A-1+ VMIG1 1,500 1,500,000
Michigan State University, General Revenue,
Series A-2, Variable Rate Weekly
Demand Note, 3.70%, 8/15/22(a) A-1+ VMIG-1 20,500 20,500,000
University of Michigan, Series B, Tax
Exempt Commercial Paper,
3.40%, 12/9/98 A-1+ P-1 4,000 4,000,000
------------
36,500,000
------------
Minnesota -- 0.1%
Minnesota State, G.O., 5.00%, 11/1/98 AAA Aaa 1,275 1,276,560
------------
1,276,560
------------
Mississippi -- 1.0%
Jackson County, Mississippi, Chevron USA
Inc. Project, (Guaranteed by Chevron),
Variable Rate Daily Demand Note,
4.00%, 6/1/23(a) -- P-1 100 100,000
Jackson County, Mississippi, Chevron USA
Inc. Project, (Guaranteed by Chevron),
Variable Rate Daily Demand Note,
4.00%, 12/1/16(a) -- P-1 1,000 1,000,000
Perry County, Mississippi, Leaf River Forest
Project, (LOC: Wachovia Bank), Variable
Rate Daily Demand Note, 4.05%,
3/1/02(a) -- P-1 7,450 7,450,000
------------
8,550,000
------------
</TABLE>
22
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Missouri -- 5.0%
Bi-State Development Agency, Missouri,
St. Clair County, (MBIA Insured),
Variable Rate Weekly Demand Note,
3.90%, 7/1/28(a) A-1+ -- $18,000 $ 18,000,000
Missouri State, Health & Educational
Facilities Authority, (Washington
University Project), Variable Rate
Weekly Demand Note, 3.60%,
9/1/09(a) A-1+ VMIG-1 7,900 7,900,000
Missouri State, Health & Educational
Facilities Authority, (Sisters of Mercy
Health), Series D, Variable Rate Weekly
Demand Note, 3.90%, 6/1/19(a) A-1+ VMIG-1 9,000 9,000,000
Missouri State, Health & Educational
Facilities Authority, (Sisters of Mercy
Health), Variable Rate Weekly Demand
Note, 3.90%, 6/1/14(a) A-1+ VMIG-1 400 400,000
Missouri State, Health & Educational
Facilities Authority, (Barnes Hospital
Project), (LOC: Morgan Guaranty),
Variable Rate Weekly Demand Note,
3.60%, 12/1/15(a) A-1+ VMIG-1 5,000 5,000,000
Missouri State, Health & Educational
Facilities Authority, ( Washington
University Project), Series C, Variable
Rate Daily Demand Note, 4.00%,
9/1/30(a) A-1+ VMIG-1 1,700 1,700,000
Missouri State, Health & Educational
Facilities Authority, (Washington
University Project), Series B, Variable
Rate Daily Demand Note, 4.15%,
9/1/30(a) A-1+ VMIG-1 1,000 1,000,000
Missouri State, G.O., Fourth State Building,
Series A, 5.00%, 6/1/99 AAA Aaa 1,150 1,159,584
------------
44,159,584
------------
Montana -- 1.0%
Forsyth, Montana, P.C.R., (Pacificorp
Project), (LOC: Rabobank Nederland),
Variable Rate Daily Demand Note,
4.20%, 1/1/18(a) A-1+ P-1 8,900 8,900,000
------------
</TABLE>
23
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nevada -- 0.2%
Nevada State, G.O., Series A, 5.25%,
5/15/99 AA Aa2 $ 1,615 $ 1,629,599
------------
New Jersey -- 2.5%
New Jersey State, Series A, Tax Exempt
Commercial Paper, 3.50%, 10/19/98 A-1+ P-1 5,000 5,000,000
New Jersey State, Series A, Tax Exempt
Commercial Paper, 3.50%, 10/22/98 A-1+ P-1 5,000 5,000,000
New Jersey State, Series A, Tax Exempt
Commercial Paper, 3.35%, 11/6/98 A-1+ P-1 1,000 1,000,000
New Jersey State, Series A, Tax Exempt
Commercial Paper, 3.35%, 11/9/98 A-1+ P-1 2,000 2,000,000
New Jersey State, Series A, Tax Exempt
Commercial Paper, 3.30%, 1/20/99 A-1+ P-1 3,000 3,000,000
New Jersey State, G.O., Series C, 6.50%,
1/15/04, (Escrowed in U.S. Govern-
ment Securities), Prerefunded
1/15/99 @ $101 1/4 AAA Aaa 1,000 1,012,652
New Jersey State, G.O., 5.00%,
7/15/99 AA+ Aa1 3,000 3,035,647
New Jersey State, G.O., Series D, 4.90%,
2/15/99 AA+ Aa1 1,000 1,005,280
New Jersey State, G.O., Series B, 6.10%,
1/15/99 AA+ Aa1 1,250 1,258,322
------------
22,311,901
------------
New Mexico -- 0.5%
New Mexico State, TRANS, 4.25%,
6/30/99 SP-1+ MIG-1 4,000 4,018,702
------------
4,018,702
------------
New York -- 3.8%
Long Island Power Authority, New York,
Electrical System Revenue, Series 6,
(LOC: ABN AMRO Bank N.V. 50%,
Morgan Guaranty 50%), Variable Rate
Daily Demand Note, 4.10%,
5/1/33(a) A-1+ VMIG-1 1,000 1,000,000
</TABLE>
24
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York (continued)
Long Island Power Authority, New York,
Electrical System Revenue, Series 5,
(LOC: ABN Amro Bank N.V. 50%,
Morgan Guaranty 50%), Variable Rate
Daily Demand Note, 4.00%,
5/1/33(a) A-1+ VMIG-1 $ 1,000 $ 1,000,000
Long Island Power Authority, New York,
Tax Exempt Commercial Paper, (LOC:
Westdeutsche Landesbank 50%,
Bayerische Landesbank 50%),
3.40%, 10/6/98 A-1+ VMIG-1 4,300 4,300,000
Long Island Power Authority, New York,
Tax Exempt Commercial Paper, (LOC:
Westdeutsche Landesbank 50%,
Bayerische Landesbank 50%),
3.10%, 10/13/98 A-1+ VMIG-1 6,000 6,000,000
Long Island Power Authority, New York,
Tax Exempt Commercial Paper, (LOC:
Westdeutsche Landesbank 50%,
Bayerische Landesbank 50%),
3.35%, 10/19/98 A-1+ VMIG-1 7,000 7,000,000
New York, New York, Sub Series A-10,
(LOC: Morgan Guaranty), Variable Rate
Daily Demand Note, 4.15%,
8/1/16(a) A-1+ VMIG-1 900 900,000
New York, New York, Sub Series A-10,
(LOC: Morgan Guaranty), Variable Rate
Daily Demand Note, 4.25%,
8/1/17(a) A-1+ VMIG-1 500 500,000
New York, New York, Sub Series B-3,
(LOC: Morgan Guaranty), Variable Rate
Daily Demand Note, 4.25%,
8/1/17(a) A-1+ VMIG-1 300 300,000
New York, New York, Sub Series B-2,
(LOC: Morgan Guaranty), Variable Rate
Daily Demand Note, 4.25%,
8/15/19(a) A-1+ VMIG-1 1,100 1,100,000
New York, New York, G.O., Sub Series A-8,
(LOC: Morgan Guaranty), Variable Rate
Daily Demand Note, 4.10%,
8/1/18(a) A-1+ VMIG-1 400 400,000
</TABLE>
25
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York (concluded)
New York, New York, G.O., Series B,
(FGIC Insured), Variable Rate Daily
Demand Note, 4.25%, 10/1/21(a) A-1+ VMIG-1 $ 350 $ 350,000
New York City, New York, Health &
Hospital Corporation, Series A, (LOC:
Morgan Guaranty), Variable Rate
Weekly Demand Note, 3.35%,
2/15/26(a) A-1+ VMIG-1 10,000 10,000,000
New York City, New York, Municipal Water
Finance Authority, Water and Sewer
System Revenue, Series A, (FGIC
Insured), Variable Rate Daily Demand
Note, 4.15%, 6/15/25(a) A-1+ VMIG-1 1,000 1,000,000
------------
33,850,000
------------
North Carolina -- 2.3%
Charlotte-Mecklenberg Hospital Authority,
North Carolina, Health Care System
Revenue, Series C, Variable Rate Weekly
Demand Note, 3.90%, 1/15/26(a) A-1+ VMIG-1 10,000 10,000,000
North Carolina Medical Care Community
Hospital Revenue, (Moses H. Cone
Memorial Hospital Project), Variable
Rate Weekly Demand Note, 3.90%,
9/1/02(a) A-1+ -- 2,600 2,600,000
North Carolina Medical Care Community
Hospital Revenue, (North Carolina
Baptist Hospital Project), Series B,
Variable Rate Weekly Demand Note,
3.90%, 6/1/22(a) A-1+ VMIG-1 8,000 8,000,000
------------
20,600,000
------------
Ohio -- 3.6%
Clermont County, Ohio, Hospital
Facilities Revenue, Series B, (Catholic
Health Partners), Variable Rate
Weekly Demand Note, 3.50%,
9/1/21(a) A-1+ VMIG-1 20,100 20,100,000
Clermont County, Ohio, Hospital
Facilities Revenue, Series A, (Catholic
Health Partners), Variable Rate
Weekly Demand Note, 3.50%,
12/1/21(a) A-1+ VMIG-1 2,100 2,100,000
</TABLE>
26
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Ohio (concluded)
Hamilton County, Ohio, Hospital
Facilities Revenue, (Health Alliance),
Series B, (MBIA Insured), Variable
Rate Weekly Demand Note, 3.48%,
1/1/18(a) AAA VMIG-1 $ 4,700 $ 4,700,000
Ohio State, G.O., Highway Capital
Improvements, Series C, 4.00%,
5/1/99 AAA Aa1 1,100 1,102,266
Ohio State, G.O., Highway Capital
Improvements, Series S, 4.40%,
5/15/99 AAA Aa1 1,835 1,841,836
Ohio State, G.O., Highway Capital
Improvements, Series U, 4.40%,
5/15/99 AAA Aa1 1,000 1,003,908
Ohio State, G.O., Highway Capital
Improvements, Series V, 4.70%,
5/15/99 AAA Aa1 1,350 1,358,763
------------
32,206,773
------------
Oregon -- 1.8%
Umatilla County, Oregon, Hospital
Facilities Authority, (Catholic
Health), Series B, Variable Rate
Weekly Demand Note, 3.55%,
12/1/24(a) A-1+ VMIG-1 15,600 15,600,000
------------
15,600,000
------------
Pennsylvania -- 3.0%
Delaware Valley, Pennsylvania, Regional
Finance Authority, Local Government,
Series B, (LOC: Credit Suisse First
Boston), Variable Rate Weekly Demand
Note, 3.50%, 12/1/20(a) A-1+ VMIG-1 2,500 2,500,000
Delaware Valley, Pennsylvania, Regional
Finance Authority, Local Government,
Series D, (LOC: Credit Suisse First
Boston), Variable Rate Weekly Demand
Note, 3.50%, 12/1/20(a) A-1+ VMIG-1 1,400 1,400,000
Delaware Valley, Pennsylvania, Regional
Finance Authority, Local Government,
Series A, (LOC: Credit Suisse First
Boston), Variable Rate Weekly Demand
Note, 3.50%, 12/1/18(a) A-1+ VMIG-1 1,200 1,200,000
</TABLE>
27
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pennsylvania (concluded)
Delaware County, Pennsylvania, Industrial
Development Authority, Philadelphia
Electric Co., (LOC: Toronto Dominion
Bank), Variable Rate Daily Demand
Note, 4.05%, 8/1/16(a) A-1+ P-1 $ 1,100 $ 1,100,000
Emmaus County, Pennsylvania, General
Authority, (FSA Insured), Variable Rate
Weekly Demand Note, 3.60%,
12/1/28(a) A-1+ -- 6,400 6,400,000
Pennsylvania State, G.O., Second Series A,
(MBIA Insured), 6.00%, 11/1/98 AAA Aaa 1,350 1,352,523
Pennsylvania State, G.O., (FGIC Insured),
5.25%, 11/15/98 AAA Aaa 3,975 3,983,806
Pennsylvania State, G.O., Second Series A,
(MBIA Insured), 4.75%, 6/15/99 AAA Aaa 1,000 1,007,506
Pottsville, Pennsylvania, Hospital Authority,
Series F, (Charity Obligated Group),
Variable Rate Weekly Demand Note,
3.45%, 11/1/19(a) A-1+ VMIG-1 7,200 7,200,000
------------
26,143,835
------------
South Carolina -- 2.3%
Lexington & Richland Counties, South
Carolina, G.O., School District No. 5,
Series B, 6.45%, 2/1/99 AA Aa1 1,000 1,008,413
Piedmont Municipal Power Agency, South
Carolina, Series D, Electric Revenue,
(MBIA Insured), Variable Rate Weekly
Demand Note, 3.50%, 1/1/25(a) A-1+ VMIG-1 8,900 8,900,000
Piedmont Municipal Power Agency, South
Carolina, Series D, Electric Revenue,
(MBIA Insured), Variable Rate Weekly
Demand Note, 3.50%, 1/1/19(a) A-1+ VMIG-1 2,000 2,000,000
Rock Hill, South Carolina, Utility System
Revenue, Series B, (AMBAC Insured),
Variable Rate Weekly Demand
Note, 3.50%, 1/1/23(a) A-1+ VMIG-1 4,550 4,550,000
South Carolina State, G.O., Series W,
4.50%, 8/1/99 AAA Aaa 2,970 2,993,605
South Carolina State, G.O., Series W,
6.00%, 5/1/99 AAA Aaa 1,125 1,139,631
------------
20,591,649
------------
</TABLE>
28
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tennessee -- 4.0%
Knox County, Tennessee, Health Educa-
tional & Housing Facility, Mercy
Health System, (Catholic Health
Partners), Series A, Variable Rate
Weekly Demand Note, 3.50%,
12/1/15(a) A-1+ VMIG-1 $ 2,900 $ 2,900,000
Memphis, Tennessee, G.O., Series A,
Variable Rate Weekly Demand Note,
3.75%, 8/1/04(a) A-1+ VMIG-1 2,500 2,500,000
Memphis, Tennessee, G.O., Series A,
Variable Rate Weekly Demand Note,
3.75%, 8/1/07(a) A-1+ VMIG-1 2,800 2,800,000
Metropolitan Nashville Airport Authority,
Special Facilities Revenue, American
Airlines Project, Series A, (LOC:
Bayerische Landesbank), Variable Rate
Daily Demand Note, 4.10%,
10/1/12(a) A-1+ -- 5,800 5,800,000
Metropolitan Nashville Airport Authority,
Special Facilities Revenue, American
Airlines Project, Series A, (LOC: Credit
Suisse First Boston), Variable Rate Daily
Demand Note, 4.10%, 10/1/12(a) A-1+ -- 3,000 3,000,000
Tennessee State, Variable Rate Weekly
Demand Note, 3.45%, 7/1/01(a) A-1+ VMIG-1 5,000 5,000,000
Tennessee State, Variable Rate Weekly
Demand Note, 3.45%, 7/2/01(a) A-1+ VMIG-1 7,000 7,000,000
Tennessee State, Variable Rate Weekly
Demand Note, 3.45%, 7/2/01(a) A-1+ VMIG-1 6,000 6,000,000
------------
35,000,000
------------
Texas -- 13.9%
Angelina & Neches River Authority, Texas,
Industrial Development Corporation,
Solid Waste Revenue, (LOC: Credit
Suisse First Boston), Variable Rate
Daily Demand Note, 4.10%,
5/1/14(a) -- P-1 1,800 1,800,000
Angelina & Neches River Authority, Texas,
Industrial Development Corporation,
Solid Waste Revenue, (LOC: Credit
Suisse First Boston), Variable Rate Daily
Demand Note, 4.10%, 5/1/14(a) -- P-1 2,800 2,800,000
</TABLE>
29
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Texas (continued)
City of Houston, Texas, Series B, Tax
Exempt Commercial Paper,
3.35%, 10/16/98 A-1+ P-1 $ 2,400 $ 2,400,000
City of Houston, Texas, Series B, Tax
Exempt Commercial Paper,
3.40%, 11/6/98 A-1+ P-1 2,000 2,000,000
City of Houston, Texas, Series B, Tax
Exempt Commercial Paper,
3.70%, 10/7/98 A-1+ P-1 10,000 10,000,000
City of Houston, Texas, Series C, Tax
Exempt Commercial Paper,
3.40%, 10/22/98 A-1+ P-1 5,000 5,000,000
City of Houston, Texas, Series C, Tax
Exempt Commercial Paper,
3.45%, 10/26/98 A-1+ P-1 4,000 4,000,000
City of Houston, Texas, Series C, Tax
Exempt Commercial Paper,
3.40%, 10/23/98 A-1+ P-1 3,300 3,300,000
Harris County, Texas, G.O., Toll Road,
Series H, Variable Rate Weekly
Demand Note, 3.60%, 8/1/20(a) A-1+ VMIG-1 4,600 4,600,000
Harris County, Texas, G.O., Toll Road,
Series G, Variable Rate Weekly Demand
Note, 3.60%, 8/1/20(a) A-1+ VMIG-1 2,800 2,800,000
Joshua, Texas, Independent School District,
Series B, 6.125%, 02/15/26, (Escrowed
in U.S. Government), Prerefunded
2/16/99 @ $100 -- AAA 4,710 4,751,053
Lower Colorado River Authority, Texas,
(MBIA Insured), Variable Rate Weekly
Demand Note, 3.50%, 1/1/13(a) A-1+ VMIG-1 21,300 21,300,000
Sabine River Authority, Texas, P.C.R.,
Utilities Electric Company, (LOC:
Union Bank of Switzerland), Variable
Rate Daily Demand Note, 4.20%,
6/1/30(a) A-1+ VMIG-1 3,500 3,500,000
San Antonio, Texas, Electric and Gas,
(FGIC Insured), 6.20%, 2/1/99 AAA Aaa 2,000 2,016,195
San Antonio, Texas, Electric and Gas,
7.00%, 2/1/99 AA Aa1 2,000 2,021,481
Texas A & M University, Texas, Tax
Exempt Commercial Paper,
3.40%, 12/10/98 A-1+ P-1 12,000 12,000,000
</TABLE>
30
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Texas (concluded)
Texas A & M University, Texas,
5.35%, 5/15/99 AA Aa2 $ 1,000 $ 1,009,324
Texas Higher Education Authority,
Series B, (FGIC Insured), Variable
Rate Weekly Demand Note,
3.60%, 12/1/25(a) A-1+ VMIG-1 3,360 3,360,000
Texas State, G.O., Housing Assistance
(Fund I), Variable Rate Weekly
Demand Note, 3.50%, 12/1/16(a) A-1+ VMIG-1 1,275 1,275,000
Texas State, G.O., Series B,
7.50%, 10/1/98 AA Aa2 1,500 1,500,000
Texas State, TRANS, 4.50%, 08/31/99 SP-1+ MIG-1 3,000 3,034,408
University of Texas, Texas, Revenue
Bond, 6.10%, 7/1/99 AAA Aaa 2,000 2,041,320
University of Texas, Texas, Tax Exempt
Commercial Paper, 3.50%, 10/8/98 A-1+ P-1 6,000 6,000,000
University of Texas, Texas, Tax Exempt
Commercial Paper, 3.45%, 10/19/98 A-1+ P-1 3,000 3,000,000
University of Texas, Texas, Tax Exempt
Commercial Paper, 3.50%, 11/18/98 A-1+ P-1 6,000 6,000,000
University of Texas, Texas, Tax Exempt
Commercial Paper, 3.55%, 11/12/98 A-1+ P-1 4,000 4,000,000
University of Texas, Texas, Tax Exempt
Commercial Paper, 3.35%, 12/8/98 A-1+ P-1 6,500 6,500,000
Waco, Texas, Health Facilities Development
Corporation, (Charity Obligated Group),
Series F, Variable Rate Weekly Demand
Note, 3.45%, 11/1/26(a) A-1+ VMIG-1 1,000 1,000,000
------------
123,008,781
------------
Utah -- 2.0%
Salt Lake City, Utah, (IHC Health
Services), Variable Rate Weekly
Demand Note, 3.50%, 1/1/20(a) A-1+ VMIG-1 11,350 11,350,000
Utah State, G.O., 4.40%, 7/1/99 AAA Aaa 1,500 1,509,056
Utah State, Series A, Tax Exempt
Commercial Paper, 3.40%, 11/12/98 A-1+ P-1 2,000 2,000,000
</TABLE>
31
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Utah (concluded)
Utah Transit Authority Sales Tax &
Transportation Revenue, (LOC:
Bayerische Landesbank), Variable
Rate Weekly Demand Note, 3.90%,
5/1/28(a) A-1+ -- $ 3,100 $ 3,100,000
------------
17,959,056
------------
Virginia -- 1.3%
Arlington County, Virginia, G.O., 4.25%,
10/1/98 AAA Aaa 1,180 1,180,000
Hampton Roads, Virginia, Regulation Jail
Authority, Series B, (LOC: Wachovia
Bank), Variable Rate Weekly Demand
Note, 3.45%, 7/1/16(a) A-1+ VMIG-1 7,800 7,800,000
Virginia State, G.O., 4.50%, 6/1/99 AAA Aaa 2,785 2,803,597
------------
11,783,597
------------
Washington -- 3.6%
Chelan County, Washington, Public Utility
District 1, (MBIA Insured), Variable
Rate Weekly Demand Note, 3.50%,
6/1/15(a) A-1+ VMIG-1 4,070 4,070,000
King County, Washington, G.O., Series C,
4.00%, 6/1/99 AA+ Aa1 3,000 3,005,177
King County, Washington, G.O., Series A,
5.80%, 1/1/99 AA+ Aa1 1,000 1,004,874
King County, Washington, G.O., Public
Transportation Sales Tax, 4.50%,
12/1/98 AA+ Aa1 2,485 2,487,998
Seattle, Washington, G.O., 4.50%,
3/1/99 AA+ Aaa 1,000 1,003,085
Washington State, G.O., Series 96B,
Variable Rate Weekly Demand Note,
3.40%, 6/1/20(a) A-1+ VMIG-1 8,000 8,000,000
Washington State, G.O., Motor Vehicle
Fuel Tax, Series D, 6.50%, 1/1/99 AA+ Aa1 1,000 1,007,504
Washington State, G.O., Series A, 4.25%,
7/1/99 AA+ Aa1 2,765 2,782,530
Washington State, G.O., Series C, 5.50%,
7/1/99 AA+ Aa1 4,000 4,054,048
Washington State, G.O., Series, 5.00%,
1/1/99 AA+ Aa1 2,000 2,006,331
</TABLE>
32
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Washington (concluded)
Washington State, G.O., 7.20%, 5/1/03,
(Escrowed in U.S. Government
Securities), Prerefunded
5/1/99 @ $100 AA+ AAA $ 1,000 $ 1,019,183
Washington State, G.O., 7.25%, 5/1/06,
(Escrowed in U.S. Government
Securities), Prerefunded
5/1/99 @ $100 AA+ AAA 1,000 1,019,669
------------
31,460,399
------------
Wisconsin -- 5.2%
Milwaukee, Wisconsin, G.O., Series K,
4.25%, 6/15/99 AA+ Aa1 2,705 2,714,996
Oak Creek, Wisconsin, P.C.R., (Wisconsin
Electric Power Company Project),
Variable Rate Weekly Demand Note,
3.55%, 8/1/16(a) AA P-1 3,200 3,200,000
Pleasant Prairie, Wisconsin, P.C.R.,
(Wisconsin Electric Power Company
Project), Series B, Variable Rate Weekly
Demand Note, 3.95%, 9/1/30(a) A-1+ P-1 10,550 10,550,000
Wisconsin State, G.O., Series C, 5.00%,
5/1/99 AA Aa2 2,000 2,016,771
Wisconsin State, Operating Notes, 4.50%,
6/15/99 SP-1+ MIG-1 27,000 27,194,970
------------
45,676,737
------------
Wyoming -- 0.5%
Uinta County, Wyoming, P.C.R., (Chevron
U.S.A.), Variable Rate Daily Demand
Note, 4.00%, 4/1/10(a) -- P-1 400 400,000
Uinta County, Wyoming, P.C.R., (Chevron
U.S.A.), Variable Rate Daily Demand
Note, 4.00%, 8/15/20(a) -- P-1 4,400 4,400,000
------------
4,800,000
------------
TOTAL INVESTMENTS -- 103.6% $915,663,921
Liabilities in Excess of Other Assets -- (3.6)% (31,746,600)
------------
NET ASSETS-- 100.0% $883,917,321
============
</TABLE>
- --------
(a) Demand security; payable upon demand by the Fund with usually no more than
seven (7) calendar days' notice. Interest rates are redetermined
periodically. Rates shown are those in effect on September 30, 1998.
33
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES (concluded) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Offering and Redemption Price Per:
Tax-Free Retail Share
($787,845,436 / 787,961,747 shares outstanding) $1.00
=====
Tax-Free Institutional Share
($96,071,885 / 96,075,542 shares outstanding) $1.00
=====
</TABLE>
INVESTMENT ABBREVIATIONS:
DN Demand Note
BAN Bond Anticipation Notes
GO General Obligation Bonds
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
LOC Letter of Credit
PCR Pollution Control Revenue Bonds
RAN Revenue Anticipation Notes
RB Revenue Bonds
TAN Tax Anticipation Notes
TECP Tax-Exempt Commercial Paper
TRAN Tax Revenue Anticipation Notes
INSURANCE ABBREVIATIONS:
AMBAC AMBAC Indemnity Corp.
FGIC Financial Guaranty Insurance Corporation
MBIA Municipal Bond Investors Assurance
MOODY'S MUNICIPAL BOND RATINGS:
Aaa Bonds that are judged to be of the best quality.
Aa Bonds that are judged to be of high quality by all standards. Issues
are sometimes rated with a 1, 2 or 3, which denote a high, medium or
low ranking within the rating.
MIG-1 Notes bearing this designation are of the best quality.
VMIG-1 Variable rate demand obligations bearing this designation are of the
best quality.
P-1 Commercial paper bearing this designation is of the best quality.
S&P MUNICIPAL BOND RATINGS:
AAA Obligations that are of the highest quality.
AA Obligations that have the second strongest capacity for payment of debt
service. Those issues determined to possess very strong safety
characteristics are denoted with a plus (+) sign.
SP-1 Notes that have a strong capacity to pay principal and interest. Those
issues determined to possess overwhelming safety characteristics are
assigned a plus (+) designation.
A-1 Commercial paper that has a strong degree of safety regarding timely
payment. Those issues determined to possess very strong safety
characteristics are denoted with a plus (+) sign.
A detailed description of the above ratings can be found in the
Fund's Statement of Additional Information.
34
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Operations (Unaudited)
For the six months ended September 30, 1998
Prime Treasury Tax-Free
Series Series Series
- --------------------------------------------------------------------------------
Investment Income:
Interest income $100,392,874 $22,020,363 $16,604,600
------------ ----------- -----------
Expenses:
Distribution fee 4,522,362 1,024,494 1,249,972
Investment Advisory fees 4,689,772 954,117 1,041,439
Transfer agent fees 967,363 137,872 75,321
Custodian fee 151,890 43,486 29,079
Accounting fees 83,250 66,565 68,300
Directors' fees 68,625 22,553 18,872
Registration fees 166,556 37,193 19,332
Legal fees 72,237 6,173 11,818
Printing & postage fees 110,587 16,044 22,718
Other expenses 139,429 40,705 64,762
------------ ----------- -----------
Total expenses 10,972,071 2,349,202 2,601,613
Less: Fees waived (73,840) -- --
------------ ----------- -----------
Net expenses 10,898,231 2,349,202 2,601,613
------------ ----------- -----------
Net investment income 89,494,643 19,671,161 14,002,987
------------ ----------- -----------
Net realized gain (loss) from
security transactions (867) 63,803 (46,726)
------------ ----------- -----------
Net increase in net assets resulting
from operations $ 89,493,776 $19,734,964 $13,956,261
============ =========== ===========
See Notes to Financial Statements.
35
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets September 30, 1998
PRIME SERIES
- --------------------------------------------------------------------------------
For the Six For the
Months Ended Year Ended
September 30, March 31,
------------- ----------
1998(+) 1997
Increase/(Decrease) in Net Assets
Operations:
Net investment income $ 89,494,643 $ 162,086,913
Net realized (loss) on sales of
investments (867) --
-------------- --------------
Net increase in net assets resulting
from operations 89,493,776 162,086,913
Distributions to Shareholders From:
Net investment income:
BT Alex. Brown Cash Reserve
Prime Shares, Treasury Shares and
Tax-Free Shares, respectively (75,031,665) (138,011,807)
BT Alex. Brown Cash Reserve
Prime Institutional Shares,
Treasury Institutional Shares and
Tax-Free Institutional Shares, respectively (8,687,715) (13,656,968)
Flag Investors Class A Prime Shares (174,241) (341,197)
Flag Investors Class B Prime Shares (19,890) (12,545)
Quality Cash Reserve Prime Shares (5,581,109) (10,064,396)
-------------- --------------
Total distributions (89,494,620) (162,086,913)
Capital Share Transactions, Net (209,540,396) 849,945,486
-------------- --------------
Total increase (decrease) in net assets (209,541,240) 849,945,486
Net Assets:
Beginning of period 3,717,409,100 2,867,463,614
-------------- --------------
End of period $3,507,867,860 $3,717,409,100
============== ==============
- ---------------
(+) Unaudited.
36
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREASURY SERIES TAX-FREE SERIES
- ------------------------------------------------------------------------------------------------------------
For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended
September 30, March 31, September 30, March 31,
------------- ---------- ------------- ----------
1998(+) 1998 1998(+) 1998
<S><C>
Increase/(Decrease) in Net Assets
Operations:
Net investment income $ 19,671,161 $ 35,037,012 $ 14,002,987 $ 23,916,200
Net realized (loss) on sales of
investments 63,803 20,785 (46,726) (1,994)
------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations 19,734,964 35,057,797 13,956,261 23,914,206
Distributions to Shareholders From:
Net investment income:
BT Alex. Brown Cash Reserve
Prime Shares, Treasury Shares and
Tax-Free Shares, respectively (17,382,029) (31,623,993) (12,482,923) (21,792,392)
BT Alex. Brown Cash Reserve
Prime Institutional Shares,
Treasury Institutional Shares and
Tax-Free Institutional Shares, respectively (2,289,133) (3,413,019) (1,520,064) (2,123,808)
Flag Investors Class A Prime Shares -- -- -- --
Flag Investors Class B Prime Shares -- -- -- --
Quality Cash Reserve Prime Shares -- -- -- --
------------ ------------ ------------ ------------
Total distributions (19,671,162) (35,037,012) (14,002,987) (23,916,200)
Capital Share Transactions, Net (15,687,126) 157,532,323 (33,903,629) 270,657,645
------------ ------------ ------------ ------------
Total increase (decrease) in net assets (15,623,324) 157,553,108 (33,950,355) 270,655,651
Net Assets:
Beginning of period 897,206,681 739,653,573 917,867,676 647,212,025
------------ ------------ ------------ ------------
End of period $881,583,357 $897,206,681 $883,917,321 $917,867,676
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
37
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each period)
BT ALEX. BROWN CASH RESERVE PRIME SHARES
- --------------------------------------------------------------------------------
For the For the
Six Months Ended Year ended
September 30, March 31,
---------------- ----------
1998(+) 1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
-------------- --------------
Income from Investment Operations:
Net investment income 0.0249 0.0494
Less Distributions:
Dividends from net investment income (0.0249) (0.0494)
-------------- --------------
Net asset value at end of period $ 1.00 $ 1.00
============== ==============
Total Return:
Based on net asset value per share 2.51% 5.05%
Ratios to Average Daily Net Assets:
Expenses 0.61%(1) 0.67%
Net investment income 4.95%(1) 4.94%
Supplemental Data:
Net assets at end of period $2,969,412,285 $3,164,537,551
Number of shares outstanding at
end of period 2,969,404,538 3,164,529,071
- ---------
(+) Unaudited.
(1) Annualized.
38
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
BT ALEX. BROWN CASH RESERVE PRIME SHARES (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
-----------------------------------------------------------------
1997 1996 1995 1994
<S><C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------------- -------------- -------------- --------------
Income from Investment Operations:
Net investment income 0.0478 0.0524 0.0442 0.0262
Less Distributions:
Dividends from net investment income (0.0478) (0.0524) (0.0442) (0.0262)
-------------- -------------- -------------- --------------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
============== ============== ============== ==============
Total Return:
Based on net asset value per share 4.88% 5.36% 4.51% 2.65%
Ratios to Average Daily Net Assets:
Expenses 0.63% 0.60% 0.61% 0.62%
Net investment income 4.78% 5.21% 4.46% 2.62%
Supplemental Data:
Net assets at end of period $2,545,532,365 $2,386,681,216 $1,472,079,739 $1,350,334,979
Number of shares outstanding at
end of period 2,545,523,855 2,386,684,392 1,472,077,488 1,350,332,916
</TABLE>
See Notes to Financial Statements.
39
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each period)
FLAG INVESTORS CASH RESERVE PRIME SHARES--CLASS A
- --------------------------------------------------------------------------------
For the For the
Six Months Ended Year ended
September 30, March 31,
---------------- ----------
1998(+) 1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
----------- ----------
Income from Investment Operations:
Net investment income 0.0249 0.0494
Less Distributions:
Dividends from net investment income (0.0249) (0.0494)
----------- ----------
Net asset value at end of period $ 1.00 $ 1.00
=========== ==========
Total Return:
Based on net asset value per share 2.51% 5.05%
Ratios to Average Daily Net Assets:
Expenses 0.61%(1) 0.67%
Net investment income 4.97%(1) 4.94%
Supplemental Data:
Net assets at end of period $10,559,517 $7,736,785
Number of shares outstanding at
end of period 10,559,257 7,736,522
- ----------
(+) Unaudited.
(1) Annualized.
40
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
FLAG INVESTORS CASH RESERVE PRIME SHARES -- CLASS A (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
----------------------------------------------------------
1997 1996 1995 1994
<S><C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- -----------
Income from Investment Operations:
Net investment income 0.0478 0.0524 0.0442 0.0262
Less Distributions:
Dividends from net investment income (0.0478) (0.0524) (0.0442) (0.0262)
---------- ---------- ---------- -----------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ===========
Total Return:
Based on net asset value per share 4.88% 5.36% 4.51% 2.65%
Ratios to Average Daily Net Assets:
Expenses 0.63% 0.60% 0.61% 0.62%
Net investment income 4.78% 5.25% 4.26% 2.62%
Supplemental Data:
Net assets at end of period $6,521,574 $5,976,831 $7,726,696 $18,116,648
Number of shares outstanding at
end of period 6,521,310 5,976,824 7,726,698 18,116,633
</TABLE>
See Notes to Financial Statements.
41
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each period)
FLAG INVESTORS CASH RESERVE PRIME SHARES--CLASS B
- --------------------------------------------------------------------------------
For the
Six Months Ended
September 30,
----------------
1998(+)
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
----------
Income from Investment Operations:
Net investment income 0.0212
Less Distributions:
Dividends from net investment income (0.0212)
----------
Net asset value at end of period $ 1.00
==========
Total Return:
Based on net asset value per share 2.14%
Ratios to Average Daily Net Assets:
Expenses 1.36%(2)
Net investment income 4.29%(2)
Supplemental Data:
Net assets at end of period $3,034,323
Number of shares outstanding at end of period 3,034,300
- ---------
(+) Unaudited.
(1) Commencement of operations.
(2) Annualized.
42
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
FLAG INVESTORS CASH RESERVE PRIME SHARES--CLASS B (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Period April 3, 1995(1)
For the Years Ended March 31, through March 31,
---------------------------------------------------------------
1998 1997 1996
<S><C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00
-------- -------- --------
Income from Investment Operations:
Net investment income 0.0418 0.0414 0.0361
Less Distributions:
Dividends from net investment income (0.0418) (0.0414) (0.0361)
-------- -------- --------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Total Return:
Based on net asset value per share 4.27% 4.22% 3.69%
Ratios to Average Daily Net Assets:
Expenses 1.42% 1.38% 1.38%(2)
Net investment income 4.18% 4.14% 4.30%(2)
Supplemental Data:
Net assets at end of period $184,382 $227,098 $ 10,200
Number of shares outstanding at end of period 184,382 227,098 10,200
</TABLE>
See Notes to Financial Statements.
43
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each period)
BT ALEX. BROWN CASH RESERVE PRIME INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------
For the Six Months For the Years
Ended September 30, Ended March 31,
------------------- ---------------
1998(+) 1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
------------ ------------
Income from Investment Operations:
Net investment income 0.0261 0.0519
Less Distributions:
Dividends from net investment
income (0.0261) (0.0519)
------------ ------------
Net asset value at end of period $ 1.00 $ 1.00
============ ============
Total Return:
Based on net asset value per share 2.64% 5.31%
Ratios to Average Daily Net Assets:
Expenses 0.36%(1) 0.42%
Net investment income 5.20%(1) 5.22%
Supplemental Data:
Net assets at end of period $271,858,350 $317,971,693
Number of shares outstanding at
end of period 271,858,147 317,971,413
- --------
(+) Unaudited.
(1) Annualized.
44
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
BT ALEX. BROWN CASH RESERVE PRIME INSTITUTIONAL SHARES (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
-----------------------------------------------------------
1997 1996 1995 1994
<S><C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ----------- ----------- -----------
Income from Investment Operations:
Net investment income 0.0503 0.0548 0.0472 0.0294
Less Distributions:
Dividends from net investment
income (0.0503) (0.0548) (0.0472) (0.0294)
------------ ----------- ----------- -----------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ =========== =========== ===========
Total Return:
Based on net asset value per share 5.15% 5.62% 4.82% 2.98%
Ratios to Average Daily Net Assets:
Expenses 0.38% 0.35% 0.36% 0.30%
Net investment income 5.04% 5.32% 4.57% 2.94%
Supplemental Data:
Net assets at end of period $117,812,047 $53,699,315 $11,904,716 $23,437,449
Number of shares outstanding at
end of period 117,811,768 53,699,535 11,904,663 23,437,512
</TABLE>
See Notes to Financial Statements.
45
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each period)
QUALITY CASH RESERVE PRIME SHARES
- --------------------------------------------------------------------------------
For the Six Months For the Years
Ended September 30, Ended March 31,
------------------- ---------------
1998(+) 1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
------------ ------------
Income from Investment Operations:
Net investment income 0.0234 0.0465
Less Distributions:
Dividends from net investment
income (0.0234) (0.0465)
------------ ------------
Net asset value at end of period $ 1.00 $ 1.00
============ ============
Total Return:
Based on net asset value per share 2.36% 4.75%
Ratios to Average Daily Net Assets:
Expenses 0.90%(1,3) 0.96%(1)
Net investment income 4.67%(2,3) 4.66%(2)
Supplemental Data:
Net assets at end of period $253,003,385 $226,978,689
Number of shares outstanding at
end of period 253,002,758 226,978,007
- --------
(+) Unaudited.
(1) Ratios of expenses to average net assets prior to partial fee waivers was
0.96%, 1.02%, 0.98% and 0.95% for the six months ended September 30, 1998
and the years ended March 31, 1998, 1997 and 1996, respectively.
(2) Ratios of net investment income to average net assets prior to partial fee
waivers was 4.73%, 4.60%, 4.43% and 4.86% for the six months ended September
30, 1998 and the years ended March 31, 1998, 1997 and 1996, respectively.
(3) Annualized.
46
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
QUALITY CASH RESERVE PRIME SHARES (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
--------------------------------------------------------------
1997 1996 1995 1994
<S><C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ----------- -----------
Income from Investment Operations:
Net investment income 0.0449 0.0493 0.0402 0.0218
Less Distributions:
Dividends from net investment
income (0.0449) (0.0493) (0.0402) (0.0218)
------------ ------------ ----------- -----------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ =========== ===========
Total Return:
Based on net asset value per share 4.59% 5.04% 4.09% 2.20%
Ratios to Average Daily Net Assets:
Expenses 0.91%(1) 0.90%(1) 0.96% 1.06%
Net investment income 4.50%(2) 4.91%(2) 4.04% 2.18%
Supplemental Data:
Net assets at end of period $197,370,530 $156,412,213 $94,592,158 $92,678,440
Number of shares outstanding at
end of period 197,369,848 156,412,393 94,591,979 92,678,268
</TABLE>
See Notes to Financial Statements.
47
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each period)
BT ALEX. BROWN CASH RESERVE TREASURY SHARES
- --------------------------------------------------------------------------------
For the Six Months For the Year
Ended September 30, Ended March 31,
------------------- ---------------
1998(+) 1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
------------ ------------
Income from Investment Operations:
Net investment income 0.0230 0.0464
Less Distributions:
Dividends from net investment income (0.0230) (0.0464)
------------ ------------
Net asset value at end of period $ 1.00 $ 1.00
============ ============
Total Return:
Based on net asset value per share 2.31% 4.74%
Ratios to Average Daily Net Assets:
Expenses 0.58%(3) 0.59%
Net investment income 4.67%(3) 4.65%
Supplemental Data:
Net assets at end of period $790,420,738 $798,426,658
Number of shares outstanding
at end of period 790,290,791 798,354,129
- --------
(+) Unaudited.
(1) Ratio of expenses to average daily net assets prior to partial fee waiver
was 0.56% for the years ended March 31, 1995 and 1994, respectively.
(2) Ratio of net investment income to average daily net assets prior to partial
fee waivers was 4.08% and 2.53% for the years ended March 31, 1995 and 1994,
respectively.
(3) Annualized.
48
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
BT ALEX. BROWN CASH RESERVE TREASURY SHARES (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
------------------------------------------------------------
1997 1996 1995 1994
<S><C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------
Income from Investment Operations:
Net investment income 0.0453 0.0494 0.0411 0.0255
Less Distributions:
Dividends from net investment income (0.0453) (0.0494) (0.0411) (0.0255)
------------ ------------ ------------ ------------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============
Total Return:
Based on net asset value per share 4.63% 5.05% 4.19% 2.58%
Ratios to Average Daily Net Assets:
Expenses 0.61% 0.58% 0.55%(1) 0.54%(1)
Net investment income 4.54% 4.94% 4.09%(2) 2.55%(2)
Supplemental Data:
Net assets at end of period $678,444,803 $666,814,158 $512,167,212 $581,724,214
Number of shares outstanding
at end of period 678,391,386 666,762,028 512,162,864 581,723,448
</TABLE>
See Notes to Financial Statements.
49
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each period)
BT ALEX. BROWN CASH RESERVE TREASURY INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------
For the Six Months For the Years
Ended September 30, Ended March 31,
------------------- ---------------
1998(+) 1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
----------- -----------
Income from Investment Operations:
Net investment income 0.0241 0.0489
Less Distributions:
Dividends from net investment income (0.0241) (0.0489)
----------- -----------
Net asset value at end of period $ 1.00 $ 1.00
=========== ===========
Total Return:
Based on net asset value per share 2.44% 5.00%
Ratios to Average Daily Net Assets:
Expenses 0.25%(3) 0.34%
Net investment income 4.75%(3) 4.91%
Supplemental Data:
Net assets at end of period $91,162,620 $98,780,023
Number of shares outstanding
at end of period 91,145,136 98,768,925
- --------
(+) Unaudited.
(1) Ratio of expenses to average daily net assets prior to partial fee waivers
was 0.31% and 0.29% for the years ended March 31, 1995 and 1994,
respectively.
(2) Ratio of net investment income to average daily net assets prior to partial
waivers was 4.14% and 2.80% for the years ended March 31, 1995 and 1994,
respectively.
(3) Annualized.
50
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
BT ALEX. BROWN CASH RESERVE TREASURY INSTITUTIONAL SHARES (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
-----------------------------------------------------------
1997 1996 1995 1994
<S><C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- -----------
Income from Investment Operations:
Net investment income 0.0481 0.0523 0.0438 0.0282
Less Distributions:
Dividends from net investment income (0.0481) (0.0523) (0.0438) (0.0282)
----------- ----------- ----------- -----------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== ===========
Total Return:
Based on net asset value per share 4.92% 5.36% 4.47% 2.86%
Ratios to Average Daily Net Assets:
Expenses 0.33% 0.33% 0.30%(1) 0.27%(1)
Net investment income 4.81% 5.12% 4.15%(2) 2.82%(2)
Supplemental Data:
Net assets at end of period $61,208,770 $51,822,757 $14,051,995 $39,692,848
Number of shares outstanding
at end of period 61,199,345 51,823,226 14,046,467 39,688,259
</TABLE>
See Notes to Financial Statements.
51
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each period)
BT ALEX. BROWN CASH RESERVE TAX-FREE SHARES
- --------------------------------------------------------------------------------
For the Six Months For the Years
Ended September 30, Ended March 31,
------------------- ---------------
1998(+) 1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
------------ ------------
Income from Investment Operations:
Net investment income 0.0150 0.0306
Less Distributions:
Dividends from net investment income (0.0150) (0.0306)
------------ ------------
Net asset value at end of period $ 1.00 $ 1.00
============ ============
Total Return:
Based on net asset value per share 1.51% 3.10%
Ratios to Average Daily Net Assets:
Expenses 0.59%(1) 0.60%
Net investment income 3.02%(1) 3.05%
Supplemental Data:
Net assets at end of period $787,845,436 $841,184,924
Number of shares outstanding
at end of period 787,961,747 841,258,030
- --------
(+) Unaudited.
(1) Annualized.
52
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
BT ALEX. BROWN CASH RESERVE TAX-FREE SHARES (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
----------------------------------------------------------
1997 1996 1995 1994
<S><C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------
Income from Investment Operations:
Net investment income 0.0286 0.0318 0.0271 0.0184
Less Distributions:
Dividends from net investment income (0.0286) (0.0318) (0.0271) (0.0184)
------------ ------------ ------------ ------------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============
Total Return:
Based on net asset value per share 2.90% 3.23% 2.75% 1.86%
Ratios to Average Daily Net Assets:
Expenses 0.62% 0.60% 0.57% 0.58%
Net investment income 2.86% 3.16% 2.74% 1.84%
Supplemental Data:
Net assets at end of period $647,212,025 $571,507,000 $475,384,229 $378,859,232
Number of shares outstanding
at end of period 647,283,274 571,593,265 475,474,913 378,939,262
</TABLE>
See Notes to Financial Statements.
53
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each period)
BT ALEX. BROWN CASH RESERVE TAX-FREE INSTITUTIONAL SERIES
- --------------------------------------------------------------------------------
For the Period
For the Six June 2, 1997(1)
Months Ended through
September 30, March 31,
------------- ---------------
1998(+) 1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
----------- -----------
Income from Investment Operations:
Net investment income 0.0160 0.0110
Less Distributions:
Dividends from net investment income (0.0160) (0.0110)
----------- -----------
Net asset value at end of period $ 1.00 $ 1.00
=========== ===========
Total Return:
Based on net asset value per share 1.64% 3.38%
Ratios to Average Daily Net Assets:
Expenses 0.34%(2) 0.35%(2)
Net investment income 3.25%(2) 3.36%(2)
Supplemental Data:
Net assets at end of period $96,071,885 $71,655,210
Number of shares outstanding
at end of period 96,075,542 71,655,199
- -------
(+) Unaudited.
(1) Commencement of operations.
(2) Annualized.
54
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
NOTE 1--Significant Accounting Policies
BT Alex. Brown Cash Reserve Fund, Inc. ("the Fund") commenced operations
August 11, 1981. The Fund is registered under the Investment Company Act of
1940, as amended, as a diversified, open-end Investment Management Company. Its
objective is to seek as high a level of current income as is consistent with
preservation of capital and liquidity.
The Fund consists of three portfolios: the Prime Series, the Treasury Series
and the Tax-Free Series. The Prime Series consists of five classes: BT Alex.
Brown Cash Reserve Prime Shares ("Prime Shares"), Flag Investors Cash Reserve
Prime Shares Class A ("Flag Investors Class A Shares"), Flag Investors Cash
Reserve Prime Shares Class B ("Flag Investors Class B Shares"), Quality Cash
Reserve Prime Shares ("Quality Cash Shares") and BT Alex. Brown Cash Reserve
Prime Institutional Shares ("Prime Institutional Shares"). The Treasury Series
consists of two classes: BT Alex. Brown Cash Reserve Treasury Shares ("Treasury
Shares") and BT Alex. Brown Cash Reserve Treasury Institutional Shares
("Treasury Institutional Shares"). The Tax-Free Series consists of two classes:
BT Alex. Brown Cash Reserve Tax-Free Shares ("Tax-Free Shares") and BT Alex.
Brown Cash Reserve Tax Free Institutional Shares ("Tax Free Institutional
Shares"). Shareholders can vote only on issues that affect the share classes
they own.
When preparing the Fund's financial statements, management makes estimates
and assumptions to comply with generally accepted accounting principles. These
estimates affect 1) the assets and liabilities that we report at the date of the
financial statements; 2) the contingent assets and liabilities that we disclose
at the date of the financial statements; and 3) the revenues and expenses that
we report for the period. Our estimates could be different from the actual
results. The Fund's significant accounting policies are:
A. Security Valuation--Each portfolio has a weighted average maturity of 90
days or less. The Fund values portfolio securities on the basis of
amortized cost, which is in accordance with Rule 2a-7 of the Investment
Company Act of 1940 and, which approximates market value. Using this
method, the Fund values a security at its cost. The Fund then assumes a
constant amortization to maturity of any discount or premium.
B. Repurchase Agreements--The Prime Series may enter into tri-party
repurchase agreements with broker-dealers and domestic banks. A repurchase
agreement is a short-term investment in which the Fund buys a debt
security that the broker agrees to repurchase at a set time and price. The
third party, which is the broker's custodial bank, holds the collateral in
a separate account until the repurchase agreement matures. The agreement
ensures that the collateral's market value, including any accrued
interest, is sufficient if the broker defaults. The Fund's access to the
collateral may be delayed or limited if the broker defaults and the value
of the collateral declines or if the broker enters into an insolvency
proceeding.
55
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
NOTE 1--concluded
C. Federal Income Taxes--The Fund determines its distributions according to
income tax regulations, which may be different from generally accepted
accounting principles. As a result, the Fund occasionally makes
reclassifications within its capital accounts to reflect income and gains
that are available for distribution under income tax regulations.
The Fund is organized as a regulated investment company. As long as it
maintains this status and distributes to its shareholders substantially
all of its taxable net investment income and net realized capital gains,
it will be exempt from most, if not all, federal income and excise taxes.
As a result, the Fund has made no provisions for federal income taxes.
Each portfolio is treated as a separate entity for federal income tax
purposes.
D. Security Transactions, Investment Income and Distributions--The Fund uses
the trade date to account for security transactions and the specific
identification method for financial reporting and income tax purposes to
determine the gain or loss on investments sold or redeemed. Interest
income is recorded on an accrual basis and includes the pro rata
amortization of premiums and accretion of discounts when appropriate.
Dividends to shareholders are declared daily. Dividend distributions or
reinvestments are made monthly.
E. Expenses--Operating expenses for each share class are recorded on an
accrual basis, and are charged to that class' operations. If a Fund
expense cannot be directly attributed to a share class, the expense is
prorated among the classes that the expense affects and is based on the
classes' relative net assets.
NOTE 2--Investment Advisory Fees, Transactions with Affiliates and Other Fees
Investment Company Capital Corp. ("ICC"), a subsidiary of Bankers Trust
Corporation, is the investment advisor for all series. Under the terms of the
investment advisory agreement, the Fund pays ICC a fee. This fee is calculated
daily and paid monthly, at the following annual rates based upon the Fund's
aggregate average daily net assets: .30% of the first $500 million, .26% of the
next $500 million, .25% of the next $500 million, .24% of the next $1 billion,
.23% of the next $1 billion and .22% of the amount over $3.5 billion. The Prime
Series pays an additional fee that is calculated daily and paid monthly at the
annual rate of .02% of its average daily net assets. The Tax-Free Series also
pays an additional fee that is calculated daily and paid monthly at the annual
rate of .03% of its average daily net assets.
As compensation for its accounting services, the Prime Series, Treasury
Series, and Tax-Free Series pay ICC an annual fee that is calculated daily and
paid monthly from the three series' average daily net assets. The Prime Series
paid $83,250, the Treasury Series paid $66,565 and the Tax-Free Series paid
$68,300, for accounting services for the six-month period ended September 30,
1998.
56
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
NOTE 2--continued
As compensation for its transfer agent services, the three series pay ICC a
per account fee that is calculated and paid monthly. The Prime Series paid
$967,364, the Treasury Series paid $137,872 and the Tax-Free Series paid $75,321
to ICC for transfer agent services for the six-month period ended September 30,
1998.
As compensation for providing distribution services, the Prime Shares, Flag
Investors Class A Shares, Treasury Shares and the Tax-Free Shares pay ICC
Distributors, Inc. ("ICC Distributors"), which is not related to ICC, an annual
fee equal to 0.25% of these classes' average daily net assets. For the six-month
period ended September 30, 1998, Distribution fees aggregated $3,791,146,
$8,756, $951,645 and $1,040,771 for distribution services for the Prime Shares,
Flag Investors Class A Shares, Treasury Shares and Tax-Free Shares,
respectively. The Quality Cash Shares and Flag Investors Class B Shares also pay
ICC Distributors an annual fee for distribution services. This fee is equal to
.60% of the Quality Cash Shares' aggregate average daily net assets or $714,833
for the six-month period ended September 30, 1998 and 1.00% of the Flag
Investors Class B Shares' aggregate average daily net assets or $4,623.
ICC and ICC Distributors may voluntarily waive a portion of their advisory or
distribution fees for the Prime, Treasury and Tax-Free Series to preserve or
enhance each series' performance. These voluntary waivers are not contractual
and could change. ICC did not waive any advisory fees for the six-month period
ended September 30, 1998. ICC Distributors voluntarily waived $73,840 of its
distribution fees for the Quality Cash Shares for the period April 1, 1998 to
September 30, 1998.
The Fund's complex offers a retirement plan for eligible Directors. The
actuarially computed pension expense allocated to the Fund for the six-month
period ended September 30, 1998 was $52,521 for the Prime Series, $16,503 for
the Treasury Series and $7,723 for the Tax-Free Series. The accrued liability at
September 30, 1998 was $244,732 for the Prime Series, $85,833 for the Treasury
Series and $85,502 for the Tax-Free Series.
57
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
NOTE 3--Capital Stock and Share Information
The Fund is authorized to issue up to 9 billion shares of $.001 par value
capital stock (5.4 billion Prime Series, 1.5 billion Treasury Series, 1.75
billion Tax-Free Series and 350 million undesignated). Transactions in shares of
the Fund were as follows:
For the Six-Month For the
Period Ended Year Ended
September 30, 1998(+) March 31, 1998
--------------------- --------------
Prime Series:
Sold:
Prime Shares 9,692,379,684 23,206,115,785
Flag Investors Class A Shares 11,362,186 6,559,775
Flag Investors Class B Shares 4,038,974 336,592
Institutional Prime Shares 2,616,513,753 4,625,290,052
Quality Cash Shares 583,725,208 1,179,123,143
Issued as reinvestment of dividends:
Prime Shares 71,276,743 129,425,606
Flag Investors Class A Shares 129,231 326,541
Flag Investors Class B Shares 7,285 8,133
Institutional Prime Shares 5,801,434 9,131,786
Quality Cash Shares 5,400,010 9,723,053
Redeemed:
Prime Shares (9,958,780,959) (22,716,536,205)
Flag Investors Class A Shares (8,668,682) (5,671,105)
Flag Investors Class B Shares (1,196,341) (387,440)
Institutional Prime Shares (2,668,428,453) (4,434,262,192)
Quality Cash Shares (563,100,467) (1,159,238,038)
-------------- ---------------
Net increase/(decrease) (209,540,396) 849,945,486
============== ===============
- --------
(+) Unaudited.
58
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (concluded)
NOTE 3--concluded
For the Six-Month For the
Period Ended Year Ended
September 30, 1998(+) March 31, 1998
--------------------- --------------
Treasury Series:
Sold:
Treasury Shares 2,405,994,062 3,641,511,991
Institutional Treasury Shares 527,086,840 590,751,899
Issued as reinvestment of dividends:
Treasury Shares 16,718,399 30,209,607
Institutional Treasury Shares 1,253,846 2,007,274
Redeemed:
Treasury Shares (2,430,775,799) (3,551,758,854)
Institutional Treasury Shares (535,964,474) (555,189,594)
-------------- ---------------
Net increase/(decrease) (15,687,126) 157,532,323
============== ===============
Tax-Free Series:
Sold:
Tax Free Shares 2,515,481,813 5,853,542,023
Institutional Tax Free Shares 545,755,106 730,445,736
Issued as reinvestment of dividends:
Tax Free Shares 11,821,502 20,778,337
Institutional Tax Free Shares 602,124 276,010
Redeemed:
Tax Free Shares (2,580,599,597) (5,680,345,603)
Institutional Tax Free Shares (526,964,577) (654,038,858)
-------------- ---------------
Net increase/(decrease) (33,903,629) 270,657,645
============== ===============
- --------
(+) Unaudited.
Note 4--Net Assets
<TABLE>
<CAPTION>
Prime Treasury Tax-Free
Series Series Series
------ -------- --------
<S><C>
Paid-in capital $3,507,861,737 $881,431,740 $883,964,047
Undistributed net investment income 8,510 -- --
Undistributed net realized gain/(loss) on
sales of investments (2,387) 151,617 (46,726)
-------------- ------------ ------------
$3,507,867,860 $881,583,357 $883,917,321
============== ============ ============
</TABLE>
59
<PAGE>
Board of Directors
- --------------------------------------------------------------------------------
RICHARD T. HALE EUGENE J. McDONALD
Chairman Director
JAMES J. CUNNANE REBECCA W. RIMEL
Director Director
JOE HARDIMAN TRUMAN T. SEMANS
Director Director
LOUIS E. LEVY CARL W. VOGT, Esq.
Director Director
Officers
- --------------------------------------------------------------------------------
HARRY WOOLF AMY M. OLMERT
President Secretary
JOSEPH A. FINELLI SCOTT J. LIOTTA
Treasurer Assistant Secretary
- --------------------------------------------------------------------------------
Distributor Transfer Agent
ICC DISTRIBUTORS, INC. INVESTMENT COMPANY CAPITAL CORP.
P.O. Box 7558 One South Street
Portland, ME 04101 Baltimore, MD 21202
(207) 879-6200 (800) 553-8080
Investment Advisor Auditors
INVESTMENT COMPANY CAPITAL CORP. PRICEWATERHOUSECOOPERS
One South Street 250 West Pratt Street
Baltimore, MD 21202 Baltimore, MD 21201
Custodian
BANKERS TRUST COMPANY
130 Liberty Street
New York, NY 10006
- --------------------------------------------------------------------------------
This report is prepared for the general information of shareholders of BT Alex.
Brown Cash Reserve Fund, Inc. It may be distributed only to current shareholders
or to persons who have received a current prospectus.
60
<PAGE>
- -----------------------------------------------------------------
IMPORTANT INCOME TAX INFORMATION
Tax-Free Series
---------------------
One hundred percent of the dividends paid by the Tax-Free Series
of BT Alex. Brown Cash Reserve Fund, Inc. for the fiscal year
ended March 31, 1998 qualified as exempt-interest dividends for
federal income tax purposes.
Treasury Series
---------------------
One hundred percent of the dividends paid by the Treasury Series
of BT Alex. Brown Cash Reserve Fund, Inc. for the fiscal year
ended March 31, 1998 were derived from interest on investments
in direct obligations of the U.S. Treasury.
Currently, most states allow the percentage of dividend income
attributable to federal obligations to be exempt from state income
tax. We recommend that you consult your tax advisor to deter-
mine if any portion of the dividends you received are exempt from
state income tax.
- -----------------------------------------------------------------
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC. ------------------
P.O. Box 1346 BULK RATE
Baltimore, MD 21203 U.S. Postage
PAID
Charlotte, NC
Permit No. 136
------------------
