BT ALEX. BROWN
CASH RESERVE
FUND, INC.
Prime Series
Treasury Series
Tax-Free Series
Annual Report
March 31, 1998
[BT ALEX. BROWN LOGO]
<PAGE>
Letter to Shareholders
- --------------------------------------------------------------------------------
May 4, 1998
We are pleased to report on the progress of your Fund for the fiscal year
ending March 31, 1998. At the end of the period, the Fund's net assets totaled
$5,532,483,457 broken down as follows: Prime Series $3,717,409,100, Treasury
Series $897,206,681, Tax-Free Series $917,867,676. The distribution of the
Fund's assets among its three series is illustrated in the following pie chart.
[PIE CHART APPEARS HERE]
SEE VALUES BELOW
Prime Series $3.7 BILLION
Treasury Series $897 MILLION
Tax-Free Series $918 MILLION
PERIOD IN REVIEW
The current U. S. economic environment is near perfect. Steady growth and
low inflation are fueling the expansion into a seventh year. The economic impact
of an unseasonably warm winter has been a surge in single family home sales and
residential construction. The latest National Purchasing Managers report
indicates continued strength in private domestic demand while the latest
unemployment statistics show persistent tightness of labor markets. Over the six
months ended March 31st, the Dow Jones Industrial Average has returned 12%, the
yield on the ten year Treasury Note has decreased from 6.10% to 5.65% and
consumer inflation has fallen to 2%.
In the money market arena, the yield curve remains flat with Federal Funds
at 5.50%, and top tier commercial paper in one, three and six month maturities
yielding 5.55%, 5.60% and 5.62% respectively. The Federal Reserve Board's
Open Market Committee met on March 31st and decided to keep interest rates
steady, continuing a policy which favors neither tightening nor easing.
1
<PAGE>
Letter to Shareholders (continued)
- --------------------------------------------------------------------------------
Historical Yield Chart
(For the year ended March 31, 1998)
[GRAPH APPEARS HERE-SEE PLOT POINTS BELOW]
PRIME TREASURY TAX-FREE
SERIES SERIES SERIES
3/31/97 4.73% 4.56% 2.72%
4/30/97 4.82 4.63 3.23
5/31/97 4.9 4.62 3.18
6/30/97 4.93 4.57 3.36
7/30/97 4.94 4.6 3.09
8/31/97 4.94 4.67 2.89
9/30/97 4.92 4.69 3.24
10/31/97 4.94 4.61 3.1
11/30/97 4.97 4.61 3.27
12/31/97 5.06 4.62 3.32
1/31/98 5 4.65 2.94
2/28/98 4.94 4.68 2.84
3/31/98 4.94 4.69 2.96
PORTFOLIO QUALITY
In keeping with our conservative investment policies, the Fund has
maintained a relatively short weighted average maturity for each series of the
Fund as noted in the chart below.
- -------------------------------------------------------------------------------
Weighted Average Maturity
(As of March 31, 1998)
- -------------------------------------------------------------------------------
BT Alex. Brown Cash Reserve Fund Prime Series 47 days
First Tier Money Fund Average 62 days
- -------------------------------------------------------------------------------
BT Alex. Brown Cash Reserve Fund Treasury Series 51 days
100% U.S. Treasury Money Fund Average 69 days
- -------------------------------------------------------------------------------
BT Alex. Brown Cash Reserve Fund Tax-Free Series 29 days
Tax-Free Money Fund Average 41 days
- -------------------------------------------------------------------------------
Source: IBC/Donoghue, Inc. "Money Fund Report," April 3, 1998.
The Money Fund Averages are average maturities of all funds in their respective
categories.
In addition to conservative maturity management, Fund policy requires that
the Fund invest only in the highest quality issues. Evidence of our insistence
on high quality can be found in the Standard & Poor's (S&P) ratings of each Fund
series. Both the Prime and Tax-Free Series continue to 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.
Our conservative approach can be seen in every aspect of portfolio
construction. This includes unusually strict limits on exposure to any issue and
a pre-
2
<PAGE>
dominance of the very highest rated paper. We have always believed that a
money fund is not a place to take chances or to speculate for additional yield.
INVESTMENT RESULTS
While maintaining unusually strict investment standards, we are pleased to
have generated competitive returns for each of the Fund's series as assets grew
to new highs. Below are yield comparisons for each series against its peer
group.
- ------------------------------------------------------------------------------
Performance Comparisons
(For the 7 day yield at March 31, 1998)
- -------------------------------------------------------------------------------
BT Alex. Brown Cash Reserve Fund Prime Series 4.96%
First Tier Money Fund Average 4.93%
- -------------------------------------------------------------------------------
BT Alex. Brown Cash Reserve Fund Treasury Series 4.69%
100% U.S. Treasury Money Fund Average 4.77%
- -------------------------------------------------------------------------------
BT Alex. Brown Cash Reserve Fund Tax-Free Series 3.01%
Tax-Free Money Fund Average 3.05%
- -------------------------------------------------------------------------------
Source: IBC/Donoghue, Inc. "Money Fund Report," April 3, 1998.
The yields shown represent past performance, which is no guarantee of future
results. An investment in a money market fund is neither insured nor guaranteed
by the U.S. government. There can be no assurance the Fund will be able to
maintain a stable net asset value of $1.00 per share. The Money Fund Averages
are average yields of all funds in their respective categories.
MARKET OUTLOOK
Despite the good news, there are economic storm clouds that bear watching.
Stock market performance has made a significant contribution to the support of
economic growth. If there is a change in consumer confidence or foreign investor
attitudes toward U.S. financial assets, any resulting weakness in the equity
market could have a negative influence on the economy. On the interest rate
front there seems to be an absence of factors acting as a restraint on the
economy. The Asian crisis, which was initially perceived as providing this
influence, has seemingly retreated to the sidelines as a threat. The slope of
the yield curve and the level of real interest rates are proving equally
ineffective as moderating influences. The Federal Reserve Board may feel
compelled to act by adopting a tightening bias in the near future.
As always, we appreciate your continued support.
Sincerely,
/s/ Richard T. Hale
____________________
Richard T. Hale
Chairman
3
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1998
Rating(g)
-------------- Par
PRIME SERIES S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Commercial Paper - 84.7%(a)
Automotive Finance - 3.8%
PACCAR Financial Corp.
5.35% 7/27/98 A-1+ P-1 $ 5,000 $ 4,913,062
Toyota Motor Credit Corp.
5.46% 5/1/98 A-1+ P-1 20,000 19,909,000
5.50% 5/4/98 A-1+ P-1 54,750 54,474,787
5.51% 5/6/98 A-1+ P-1 30,000 29,839,292
5.46% 5/8/98 A-1+ P-1 15,000 14,915,825
5.50% 5/14/98 A-1+ P-1 15,500 15,398,174
-----------
139,450,140
-----------
Banks - 0.8%
Republic New York Corp.
5.41% 5/1/98 A-1+ P-1 30,000 29,864,750
-----------
29,864,750
-----------
Beverages- Soft Drinks - 1.7%
Coca-Cola Co.
5.39% 4/3/98 A-1+ P-1 25,000 24,992,514
5.38% 4/21/98 A-1+ P-1 20,000 19,940,222
5.40% 4/23/98 A-1+ P-1 20,000 19,934,000
-----------
64,866,736
-----------
Chemicals, General - 2.9%
E.I. duPont de Nemours and Co.
5.34% 4/7/98 A-1+ P-1 15,000 14,986,650
5.34% 4/8/98 A-1+ P-1 25,000 24,974,042
5.46% 5/11/98 A-1+ P-1 25,000 24,848,333
5.44% 6/25/98 A-1+ P-1 25,000 24,678,889
5.345% 8/14/98 A-1+ P-1 20,000 19,599,125
-----------
109,087,039
-----------
Chemicals, Specialty - 0.8%
Lubrizol
5.50% 4/1/98 A-1+ P-1 30,000 30,000,000
-----------
30,000,000
-----------
Computer & Office Equipment - 1.4%
Pitney Bowes Credit Corp.
5.43% 4/10/98 A-1+ P-1 30,000 29,959,275
5.48% 5/14/98 A-1+ P-1 23,500 23,346,179
-----------
53,305,454
-----------
4
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BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating(g)
-------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Commercial Paper (continued)
Consumer Products - 3.6%
Eastman Kodak Co.
5.52% 4/10/98 A-1+ P-1 $15,000 $ 14,979,300
5.52% 4/14/98 A-1+ P-1 15,000 14,970,100
5.52% 4/21/98 A-1+ P-1 15,000 14,954,000
5.52% 4/22/98 A-1+ P-1 15,000 14,951,700
5.52% 4/23/98 A-1+ P-1 23,600 23,520,389
5.48% 5/5/98 A-1+ P-1 20,000 19,896,489
5.51% 5/12/98 A-1+ P-1 15,000 14,905,871
5.50% 5/21/98 A-1+ P-1 15,000 14,885,417
___________
133,063,266
___________
Electrical & Electronics - 5.7%
Emerson Electric Co.
5.50% 4/13/98 A-1+ P-1 40,000 39,926,667
5.49% 4/17/98 A-1+ P-1 25,000 24,939,000
5.48% 4/20/98 A-1+ P-1 22,000 21,936,372
Motorola Inc.
5.42% 4/6/98 A-1+ P-1 20,000 19,984,944
5.48% 5/12/98 A-1+ P-1 25,000 24,843,972
5.48% 5/21/98 A-1+ P-1 40,000 39,695,555
5.47% 6/25/98 A-1+ P-1 40,000 39,483,389
___________
210,809,899
___________
Electric Utility - 1.8%
Citizens Utilities Co.
5.48% 6/19/98 A-1+ P-1 20,000 19,759,489
Duke Energy Co.
5.43% 4/7/98 A-1+ P-1 25,000 24,977,375
5.47% 5/28/98 A-1+ P-1 20,600 20,421,587
___________
65,158,451
___________
Entertainment - 1.5%
Walt Disney Co.
5.63% 4/23/98 A-1 P-1 25,000 24,913,986
5.44% 7/16/98 A-1 P-1 30,000 29,519,467
___________
54,433,453
___________
Finance, Consumer - 4.1%
USAA Capital Corp.
5.41% 4/7/98 A-1+ P-1 15,000 14,986,475
5.46% 4/24/98 A-1+ P-1 25,000 24,912,792
5.44% 5/4/98 A-1+ P-1 25,000 24,875,333
5.42% 5/12/98 A-1+ P-1 30,000 29,814,817
5.47% 5/12/98 A-1+ P-1 20,000 19,781,200
5.47% 6/19/98 A-1+ P-1 15,000 14,819,946
5.47% 7/17/98 A-1+ P-1 25,000 24,593,549
___________
153,784,112
___________
5
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1998
Rating(g)
--------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Commercial Paper (continued)
Finance, Diversified - 3.9%
General Electric Capital Corp.
5.44% 4/14/98 A-1+ P-1 $20,000 $ 19,960,711
5.44% 4/21/98 A-1+ P-1 30,000 29,909,333
5.56% 4/23/98 A-1+ P-1 15,000 14,949,033
5.35% 5/12/98 A-1+ P-1 15,212 15,119,312
5.35% 6/19/98 A-1+ P-1 24,400 24,113,537
5.40% 7/6/98 A-1+ P-1 25,000 24,640,000
5.46% 7/9/98 A-1+ P-1 16,883 16,629,502
___________
145,321,428
___________
Food - 5.0%
Campbell Soup Co.
5.54% 4/17/98 A-1+ P-1 4,000 3,990,151
5.35% 10/5/98 A-1+ P-1 35,000 34,027,340
Cargill, Inc.
5.37% 4/23/98 A-1+ P-1 10,000 9,967,183
5.52% 5/5/98 A-1+ P-1 20,000 19,895,733
5.46% 5/12/98 A-1+ P-1 25,000 24,844,542
5.44% 5/26/98 A-1+ P-1 40,000 39,667,785
5.46% 6/2/98 A-1+ P-1 15,000 14,858,950
5.45% 6/10/98 A-1+ P-1 25,000 24,735,069
Kellogg Co.
5.51% 4/28/98 A-1+ P-1 12,364 12,312,906
___________
184,299,659
___________
Household Products - 3.3%
Colgate-Palmolive Co.
5.49% 4/30/98 A-1 P-1 35,000 34,845,212
Proctor & Gamble Co.
5.48% 5/4/98 A-1+ P-1 40,000 39,799,067
5.35% 6/2/98 A-1+ P-1 25,000 24,769,653
5.35% 6/26/98 A-1+ P-1 25,000 24,680,486
___________
124,094,418
___________
Insurance, Brokerage - 2.6%
Marsh & McLennan Companies Inc.
5.44% 6/11/98 A-1+ P-1 20,000 19,785,422
5.47% 7/23/98 A-1+ P-1 15,000 14,742,454
5.39% 9/8/98 A-1+ P-1 20,000 19,520,889
5.43% 9/16/98 A-1+ P-1 15,000 14,619,900
5.28% 10/20/98 A-1+ P-1 30,000 29,110,078
___________
97,778,743
___________
6
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating(g)
--------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Commercial Paper (continued)
Insurance, Property & Casualty - 3.9%
A.I. Credit Corp.
5.44% 4/9/98 A-1+ P-1 $15,000 $ 14,981,867
5.43% 5/6/98 A-1+ P-1 50,000 49,736,042
5.35% 5/11/98 A-1+ P-1 30,000 29,821,667
5.33% 6/12/98 A-1+ P-1 20,000 19,786,800
5.36% 7/7/98 A-1+ P-1 30,000 29,566,733
___________
143,893,109
___________
Integrated Oil - 6.3%
Amoco Co.
5.41% 4/7/98 A-1+ P-1 25,000 24,977,458
5.40% 4/16/98 A-1+ P-1 30,000 29,932,500
5.37% 4/27/98 A-1+ P-1 30,000 29,883,650
5.40% 5/12/98 A-1+ P-1 30,000 29,815,500
5.42% 6/16/98 A-1+ P-1 25,000 24,713,944
5.43% 7/21/98 A-1+ P-1 20,000 19,665,150
Shell Oil Co.
5.41% 4/9/98 A-1+ P-1 50,000 49,939,889
5.45% 6/12/98 A-1+ P-1 25,000 24,727,500
___________
233,655,591
___________
Machinery & Tools - 1.5%
Dover Corp.
5.48% 4/17/98 A-1 NR 17,500 17,457,378
5.53% 4/21/98 A-1 NR 20,000 19,938,556
Snap-On Incorporated
5.48% 4/9/98 A-1+ P-1 20,000 19,975,644
___________
57,371,578
___________
Natural Gas - 0.7%
Consolidated Natural Gas
5.50% 4/17/98 A-1+ P-1 25,000 24,938,889
___________
24,938,889
___________
Oil Transportation - 2.8%
Colonial Pipeline Co.
5.50% 4/6/98 A-1+ P-1 15,000 14,988,542
5.62% 4/22/98 A-1+ P-1 15,000 14,950,825
5.48% 4/28/98 A-1+ P-1 13,000 12,946,570
5.52% 5/27/98 A-1+ P-1 15,000 14,871,200
5.63% 6/10/98 A-1+ P-1 13,000 12,857,686
5.47% 6/23/98 A-1+ P-1 19,000 18,760,384
5.62% 6/29/98 A-1+ P-1 15,000 14,791,592
___________
104,166,799
___________
7
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1998
Rating(g)
--------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Commercial Paper (continued)
Paper - 4.5%
Kimberly-Clark Corp.
5.51% 4/29/98 A-1+ P-1 $50,500 $ 50,283,579
5.50% 4/30/98 A-1+ P-1 27,300 27,179,046
Minnesota Mining & Manufacturing Co.
5.38% 4/20/98 A-1+ P-1 38,910 38,799,412
5.35% 5/19/98 A-1+ P-1 20,000 19,857,333
5.35% 5/20/98 A-1+ P-1 30,000 29,781,542
___________
165,900,912
___________
Pharmaceuticals - 6.9%
Abbott Laboratories
5.48% 4/7/98 A-1+ P-1 30,000 29,972,600
5.47% 4/8/98 A-1+ P-1 36,000 35,961,710
Merck & Co., Inc.
5.38% 4/24/98 A-1+ P-1 75,000 74,742,208
Pfizer Inc.
5.46% 5/4/98 A-1+ P-1 48,000 47,759,760
Schering-Plough Corp.
5.42% 4/14/98 A-1+ P-1 11,835 11,811,836
5.36% 5/20/98 A-1+ P-1 8,000 7,941,636
Warner-Lambert Co.
5.36% 7/24/98 A-1+ P-1 50,000 49,151,333
___________
257,341,083
___________
Publishing - 1.5%
Gannett Co., Inc.
5.45% 4/9/98 A-1+ P-1 20,000 19,975,778
5.50% 4/14/98 A-1+ P-1 20,000 19,960,278
Times Mirror Co.
5.52% 6/5/98 A-1 P-1 16,000 15,840,533
___________
55,776,589
___________
Structured Finance - 9.0%
CIESCO, L.P.
5.43% 4/8/98 A-1+ P-1 20,000 19,978,883
5.50% 4/17/98 A-1+ P-1 25,000 24,938,889
5.43% 4/29/98 A-1+ P-1 30,000 29,873,300
5.50% 5/15/98 A-1+ P-1 15,000 14,899,167
5.47% 5/15/98 A-1+ P-1 20,000 19,866,289
5.47% 5/22/98 A-1+ P-1 15,000 14,883,762
5.50% 5/28/98 A-1+ P-1 25,000 24,782,292
8
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating(g)
--------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Commercial Paper (continued)
Structured Finance (concluded)
Corporate Receivables Corp.
5.45% 4/9/98 A-1 P-1 $ 25,000 $ 24,969,722
5.48% 5/13/98 A-1 P-1 20,000 19,872,133
Corporate Asset Funding Co., Inc.
5.43% 4/08/98 A-1+ P-1 35,000 34,963,104
5.40% 4/13/98 A-1+ P-1 15,000 14,973,000
5.44% 4/23/98 A-1+ P-1 25,000 24,916,889
5.43% 4/24/98 A-1+ P-1 22,250 22,172,811
5.45% 4/28/98 A-1+ P-1 20,000 19,918,250
5.50% 6/11/98 A-1+ P-1 25,000 24,728,819
-------------
335,737,310
-------------
Telephone - 4.7%
Ameritech Capital Funding Corp.
5.50% 4/9/98 A-1+ P-1 15,000 14,981,667
5.40% 4/24/98 A-1+ P-1 15,000 14,948,250
5.45% 4/27/98 A-1+ P-1 20,000 19,921,278
Ameritech Corp.
5.395% 6/9/98 A-1+ P-1 25,000 24,741,490
AT&T Corp.
5.50% 4/8/98 A-1+ P-1 20,000 19,978,611
Bell Atlantic Network Funding Corp.
5.52% 4/22/98 A-1+ P-1 20,000 19,935,600
Bell Atlantic Financial Services Corp.
5.51% 5/7/98 A-1 P-1 15,000 14,917,350
SBC Communications Inc.
5.33% 4/17/98 A-1+ P-1 20,000 19,952,622
5.44% 5/27/98 A-1+ P-1 25,000 24,788,444
-------------
174,165,312
-------------
Total Commercial Paper 3,148,264,720
-------------
Variable Rate Notes - 3.3%
Associates Corp. Master Note
5.497%(b) 6/1/98 A-1+ P-1 75,000 75,000,000
Coca-Cola Co. Master Note
5.417%(b) 9/9/98 A-1+ P-1 50,000 50,000,000
------------
Total Variable Rate Notes 125,000 125,000,000
------------
9
<PAGE>
<TABLE>
<CAPTION>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- -------------------------------------------------------------------------------------
Statement of Net Assets March 31, 1998
Rating(g)
--------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- ------------------------------------------------------------------------------------
<S><C>
Federal Home Loan Bank - 3.1%
FHLB
5.43% 5/6/98 AAA -- $ 20,000 $ 19,894,417
5.72% 6/30/98 AAA -- 20,000 20,000,000
5.24% 7/17/98 AAA -- 34,580 34,041,436
5.70% 3/17/99 AAA -- 20,000 20,000,000
5.65% 3/30/99 AAA -- 20,000 20,000,000
---------------
Total Federal Home Loan Bank 114,580 113,935,853
Federal National Mortgage Association - 3.6% ---------------
FNMA
Note
5.61% 5/14/98 -- P-1 20,000 20,000,000
5.74% 6/9/98 -- P-1 15,000 15,000,000
5.28% 7/13/98 -- P-1 25,000 24,622,333
5.35% 7/16/98 -- P-1 30,000 30,000,000
5.37% 8/12/98 -- P-1 20,000 20,000,000
5.47% 9/14/98 -- P-1 25,000 25,000,000
---------------
Total Federal National Mortgage Association 135,000 134,622,333
Repurchase Agreements - 5.4%(c) ---------------
Goldman, Sachs & Co.
5.86% 4/1/98(d) -- -- 100,900 100,900,000
Morgan Stanley & Co.
5.80% 4/1/98(e) -- -- 100,000 100,000,000
-------- ---------------
Total Repurchase Agreements 200,900 200,900,000
-------- ---------------
TOTAL INVESTMENTS - 100.1% $3,722,722,906(f)
LIABILITIES IN EXCESS OF OTHER ASSETS, NET - (0.1%) (5,313,806)
--------------
NET ASSETS - 100.0% $3,717,409,100
==============
</TABLE>
10
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- -------------------------------------------------------------------------------
PRIME SERIES (concluded) Value
- -------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per:
Prime Share
($3,164,537,551 / 3,164,529,071 shares outstanding) $1.00
=====
Flag Investors Class A Share
($7,736,785 / 7,736,522 shares outstanding) $1.00
=====
Flag Investors Class B Share
($184,382 / 184,382 shares outstanding) $1.00
=====
Institutional Prime Share
($317,971,693 / 317,971,413 shares outstanding) $1.00
=====
Quality Cash Reserve Prime Share
($226,978,689 / 226,978,007 SHARES OUTSTANDING) $1.00
=====
__________
(a) Most commercial paper is traded on a discount basis. In such cases, the
interest rate shown represents the yield 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 March 31, 1998.
(c) Collateral on Tri-Party repurchase agreements is taken into possession by
the Fund's agent upon entering into the Tri-Party repurchase agreement. The
collateral is marked to market daily to insure market value as being as
least 102 percent of the resale price of the repurchase agreement.
(d) Dated 3/31/98 to be repurchased on 4/1/98, collateralized by U.S. Treasury
Notes with a market value of $102,918,187.
(e) Dated 3/31/98 to be repurchased on 4/1/98, collateralized by U.S. Treasury
Notes with a market value of $102,178,538.
(f) Aggregate cost for financial reporting and federal tax purposes.
(g) The credit ratings are not covered by the report of independent accountants.
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 March 31, 1998
Maturity Par
TREASURY SERIES Date (000) Value
- --------------------------------------------------------------------------------
U.S. Treasury Securities - 99.45%
U.S. Treasury Bills(a) - 63.32%
4.980% 4/2/98 $ 10,375 $ 10,373,565
5.080% 4/2/98 37,000 36,994,774
4.960% 4/9/98 1,594 1,592,243
4.960% 4/16/98 30,750 30,686,450
4.980% 4/16/98 1,860 1,856,141
5.000% 4/16/98 1,650 1,646,563
5.050% 4/16/98 2,025 2,020,739
5.130% 4/16/98 1,500 1,496,794
5.300% 4/16/98 8,550 8,531,119
5.330% 4/16/98 38,015 37,930,575
5.220% 4/23/98 15,000 14,952,150
5.230% 4/23/98 25,840 25,757,412
5.235% 4/23/98 21,900 21,829,938
5.275% 4/23/98 33,100 32,993,298
5.320% 4/23/98 4,725 4,709,639
5.020% 4/30/98 19,740 19,660,174
5.290% 4/30/98 15,400 15,334,375
5.300% 4/30/98 25,000 24,893,264
4.970% 5/7/98 1,300 1,293,539
5.060% 5/7/98 1,725 1,716,272
5.070% 5/7/98 4,000 3,979,700
5.080% 5/7/98 13,700 13,630,404
5.065% 5/21/98 48,725 48,382,233
5.070% 5/28/98 4,000 3,967,890
5.175% 5/28/98 39,100 38,779,624
5.000% 6/4/98 770 763,156
5.040% 6/4/98 6,700 6,639,968
4.970% 6/25/98 10,850 10,722,678
4.980% 6/25/98 2,600 2,569,428
5.040% 6/25/98 54,700 54,049,070
5.060% 6/25/98 2,450 2,420,729
5.110% 6/25/98 8,450 8,348,048
5.120% 6/25/98 3,000 2,963,733
4.960% 7/23/98 21,000 20,673,053
4.970% 7/23/98 14,500 14,273,796
5.030% 7/23/98 26,200 25,786,338
5.050% 7/23/98 14,100 13,876,495
-----------
Total U.S. Treasury Bills 568,095,367
-----------
12
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Maturity Par
TREASURY SERIES (concluded) Date (000) Value
- --------------------------------------------------------------------------------
U.S. Treasury Securities (concluded)
U.S. Treasury Notes - 36.13%
5.875% 4/30/98 $ 80,000 $ 80,034,987
6.125% 5/15/98 119,850 119,960,164
6.000% 5/31/98 50,000 50,050,872
5.125% 6/30/98 19,000 18,992,393
6.250% 6/30/98 30,000 30,065,918
6.250% 7/31/98 25,000 25,072,655
------------
Total U.S. Treasury Notes 324,176,989
------------
TOTAL U.S. TREASURY SECURITIES 892,272,356
-------------
TOTAL INVESTMENTS - 99.45% 892,272,356(b)
OTHER ASSETS LESS LIABILITIES, NET - 0.55% 4,934,325
---------------
NET ASSETS - 100.0% $897,206,681
============
Net Asset Value, Offering and Redemption Price Per:
Treasury Share
($798,426,658 / 798,354,129 shares outstanding) $1.00
=====
Institutional Treasury Share
($98,780,023 / 98,768,925 shares outstanding) $1.00
=====
(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 March 31, 1998
Rating(d)
--------------- Par
TAX-FREE SERIES S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Alabama -- 2.5%
Alabama Housing Finance Authority
Multifamily Housing Refunding RB
(Heatherbrooke Project) DN
(FNMA LOC)
3.70% 4/7/98(a) A-1+ -- $ 9,900 $ 9,900,000
Alabama Housing Finance Authority
Multifamily Housing Refunding RB
(Rime Village Hoover Project)
Series 1996a DN (FNMA LOC)
3.70% 4/7/98(a) A-1+ VMIG-1 5,800 5,800,000
University of Alabama,
University of Alabama-Birmingham
Hospital, Series A DN
3.70% 4/7/98(a) A-1+ VMIG-1 7,200 7,200,000
-----------
22,900,000
-----------
Arizona -- 3.4%
Apache County IDA RB (Tucson Electric
Power Co. Project) Series 1983 DN
(Toronto Dominion LOC)
3.75% 4/7/98(a) A-1+ -- 7,000 7,000,000
Salt River Project Agricultural Improvement
and Power District
3.60% 6/19/98(b) A-1+ P-1 23,900 23,900,000
-----------
30,900,000
-----------
Arkansas -- 0.2%
Arkansas Development Authority Health
Care Facility (Sisters of Mercy) DN
(ABN Amro Bank N.V. LOC)
3.65% 4/7/98(a) A-1+ VMIG-1 1,800 1,800,000
----------
Colorado -- 1.4%
Colorado Health Facilities Authority
Revenue Catholic Health Series B DN
3.70% 4/7/98(a) A-1+ VMIG-1 4,350 4,350,000
Colorado Housing Finance Authority
Multifamily Housing (Silver Reef
Project) DN (FNMA LOC)
3.75% 4/7/98(a) A-1+ VMIG-1 8,290 8,290,000
-----------
12,640,000
-----------
14
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating(d)
--------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Connecticut -- 1.8%
Connecticut GO DN
3.65% 4/7/98(a) A-1+ VMIG-1 $ 9,500 $ 9,500,000
Connecticut State Board of Education
(Yale University)
3.40% 5/1/98(b) A-1+ P-1 7,000 7,000,000
-----------
16,500,000
-----------
Florida -- 1.3%
Orlando Special Assessment
RB Republic Drive Interchange DN
(Morgan Guaranty LOC)
3.65% 4/7/98(a) -- VMIG-1 10,100 10,100,000
Tampa Health Facilities Authority RB
(Lifelink Foundation Inc., Project) DN
(Suntrust Bank LOC)
3.70% 4/7/98(a) Aa3 -- 1,500 1,500,000
-----------
11,600,000
Georgia -- 8.7% -----------
Cobb County Housing Authority RB
(Post Bridge Project) Series 1995 DN
(FNMA LOC)
3.70% 4/7/98(a) A-1+ -- 9,380 9,380,000
Columbus Housing Authority RB
(Columbus State University
Foundation Inc.) Series 97 DN
(Suntrust Bank LOC)
3.70% 4/7/98(a) Aa3 -- 2,300 2,300,000
Dekalb County Housing Authority
Housing (Camden Brooke Project) DN
(FNMA LOC)
3.70% 4/7/98(a) -- VMIG-1 5,400 5,400,000
Dekalb County Housing Authority
Multifamily Housing (Clairmont
Crest Project) DN (FNMA LOC)
3.70% 4/7/98(a) A-1+ VMIG-1 1,400 1,400,000
Dekalb County Housing Authority
Multifamily Housing (Post Ashford
Project) DN (FNMA LOC)
3.70% 4/7/98(a) A-1+ -- 7,895 7,895,000
15
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1998
Rating(d)
--------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Georgia (concluded)
Fulton County Development
Authority (Georgia Tech Athletic
Association Project) Series 1995 DN
(Suntrust Bank LOC)
3.70% 4/7/98(a) Aa3 -- $ 6,150 $ 6,150,000
GEORGIA MUNICIPAL ELECTRIC AUTHORITY
SERIES C DN (MORGAN GUARANTY LOC)
3.65% 4/7/98(a) A-1+ VMIG-1 18,600 18,600,000
Georgia Municipal Gas Authority RB
Agency Project DN (Wachovia LOC)
3.65% 4/7/98(a) A-1+ -- 2,400 2,400,000
Georgia Municipal Gas Authority RB
Agency Project DN (Wachovia LOC)
3.65% 4/7/98(a) A-1+ -- 5,000 5,000,000
Georgia Municipal Gas Authority RB
DN (Wachovia LOC)
3.65% 4/7/98(a) A-1+ -- 4,000 4,000,000
Macon-Bibb County Hospital Authority
(Medical Center of Central Georgia)
Series 1997 DN (Suntrust Bank LOC)
3.70% 4/7/98(a) Aa3 VMIG-1 3,000 3,000,000
Roswell Housing Authority Multifamily
Housing (Post Canyon Project) DN
(FNMA LOC)
3.70% 4/7/98(a) A-1+ -- 5,500 5,500,000
Smyrna Housing Authority Multifamily
Housing RB (F&M Villages Project)
DN (FNMA LOC)
3.70% 4/7/98(a) A-1+ -- 8,500 8,500,000
-----------
79,525,000
Idaho -- 0.8% -----------
Idaho State TAN
4.625% 6/30/98(b) SP-1+ MIG-1 7,500 7,513,259
-----------
Illinois -- 15.2%
Cook County GO DN
3.65% 4/7/98(a) A-1+ VMIG-1 7,400 7,400,000
Illinois Development Finance
Authority (Chicago Symphony
Orchestra Project) DN
(Northern Trust LOC)
3.70% 4/7/98(a) A-1 VMIG-1 11,300 11,300,000
16
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating(d)
--------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Illinois (continued)
Illinois Development Finance
Authority Adjustable Demand RB
(Fenwick High School Project) DN
(Northern Trust LOC)
3.70% 4/7/98(a) A-1+ -- $ 8,200 $ 8,200,000
Illinois Development Finance Authority
PCR (Commonwealth Edison Co.
Project) Series 1994C DN
(ABN Amro Bank N.V. LOC)
3.70% 4/7/98(a) A-1+ P-1 7,700 7,700,000
Illinois Development Finance Authority
PCR (Illinois Power Co. Project)
(Canadian Imperial Bank LOC)
3.55% 11/5/98(b) A-1+ VMIG-1 15,000 15,000,000
Illinois Development Finance Authority
PCR Refunding (Illinois Power Co.
Project) DN (Canadian Imperial
Bank LOC)
3.70% 4/7/98(a) A-1+ VMIG-1 8,500 8,500,000
Illinois Education Facility Authority
(Museum of Science and Industry) DN
(Northern Trust LOC)
3.70% 4/7/98(a) -- VMIG-1 5,800 5,800,000
Illinois Educational Facilities Authority
(Field Museum of Natural History)
(Northern Trust LOC)
3.80% 6/17/98(b) -- VMIG-1 15,000 15,000,000
Illinois Educational Facilities Authority
Adjustable Demand MB
(John F. Kennedy Health Care
Foundation) (Harris Trust LOC)
3.50% 5/19/98(b) A-1+ -- 12,800 12,800,000
Illinois Health Facilities Authority
(Gottlieb Health Resources, Inc.) DN
(Harris Trust & Savings Bank LOC)
3.70% 4/7/98(a) -- VMIG-1 2,000 2,000,000
Illinois Health Facilities Authority RB
(Gottlieb Health) DN (Harris Trust LOC)
3.70% 4/7/98(a) -- VMIG-1 2,500 2,500,000
Illinois Health Facilities Authority (Carle
Foundation Project) DN (Northern
Trust LOC)
3.75% 4/7/98(a) -- VMIG-1 5,750 5,750,000
17
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1998
Rating(d)
--------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Illinois (concluded)
Illinois Health Facility Authority
(Evanston Hospital Corp. Project)
SERIES 1990A MB
3.90% 10/15/98(b) A-1+ VMIG-1 $16,000 $ 16,000,000
Illinois Health Facility Authority
(Evanston Hospital Corp. Project)
Series 1996 MB
3.90% 7/31/98(b) A-1+ VMIG-1 5,000 5,000,000
Illinois Health Facilities Authority
Revolving Fund Pooled Financing
Program (The University of
Chicago Project)
3.75% 5/27/98(b) A-1+ VMIG-1 16,400 16,400,000
------------
139,350,000
------------
Indiana -- 1 .9%
Mt. Vernon PCR RB Solid Waste Disposal
(General Electric) Series L DN
3.60% 4/7/98(a) A-1+ VMIG-1 3,500 3,500,000
Petersburg PCR (Indianapolis Power &
Light Co.) DN (AMBAC Insurance)
3.70% 4/7/98(a) -- VMIG-1 4,100 4,100,000
Purdue University Student Fee Bonds DN
3.60% 4/7/98(a) A-1+ VMIG-1 10,000 10,000,000
------------
17,600,000
------------
Kentucky -- 2.2%
Kentucky Economic Development
Finance Authority Hospital Facilities RB
(Baptist Healthcare System) DN
3.60% 4/7/98(a) A-1+ -- 20,100 20,100,000
------------
Louisiana -- 3.2%
East Baton Rouge Parish (Georgia
Pacific Corp.) PCR DN
(Toronto Dominion LOC)
3.7% 4/7/98(a) -- P-1 2,700 2,700,000
Louisiana Offshore Terminal Authority
First Stage 1991 A (Loop Inc.) DN
(Morgan Guaranty LOC)
3.65% 4/7/98(a) A-1+ VMIG-1 8,600 8,600,000
18
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating(d)
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -------------------------------------------------------------------------------
Louisiana (concluded)
Plaquemines Port, Harbor and Terminal
District, Marine Terminal Facilities
Refunding RB (Tampa Electric) Series A
3.55% 5/7/98(b) -- P-1 $ 6,325 $ 6,325,000
Plaquemines Port, Harbor and Terminal
District, Marine Terminal Facilities
Refunding RB (Tampa Electric) Series A
3.50% 6/10/98(b) -- P-1 4,325 4,325,000
Plaquemines Port, Harbor and Terminal
District, Marine Terminal Facilities
Refunding RB (Tampa Electric) Series A
3.55% 5/7/98(b) -- P-1 7,000 7,000,000
-----------
28,950,000
-----------
Maryland -- 7.0%
Community Development Administration
Multifamily Development RB
(Avalon Ridge Apartments) 97 DN
(FNMA LOC)
3.65% 4/7/98(a) -- VMIG-1 15,000 15,000,000
Community Development Administration
Multifamily Development RB (Avalon
Lea Apartments) DN (FNMA LOC)
3.65% 4/7/98(a) -- VMIG-1 6,000 6,000,000
Frederick County Variable Rate BAN
3.75% 4/7/98(a) A-1+ VMIG-1 3,000 3,000,000
Howard County Consolidated Public
Improvement TECP BANS
3.50% 6/19/98(b) A-1+ P-1 14,000 14,000,000
Montgomery County BAN TECP
Series 95
3.40% 5/6/98(b) A-1+ P-1 6,800 6,800,000
Washington Suburban Sanitary District
Montgomery, Prince George's Counties
GO BAN DN
3.75% 4/7/98(a) A-1+ VMIG-1 16,600 16,600,000
Washington Suburban Sanitary District
Sewer Disposal
5.90% 11/1/98(b) A-1+ VMIG-1 2,500 2,529,396
-----------
63,929,396
-----------
19
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1998
Rating(d)
--------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Massachusetts -- 0.4%
Massachusetts Port Authority DN
3.70% 4/1/98(a) A-1+ VMIG-1 $ 2,600 $ 2,600,000
Massachusetts Health & Education
Authority RB (Partners Healthcare
System) DN P-2
3.45% 4/7/98(a) -- VMIG-1 1,400 1,400,000
-----------
4,000,000
-----------
Michigan -- 2.3%
Detroit Water Supply System DN
(FGIC Insurance)
3.65% 4/7/98(a) A-1+ VMIG-1 2,000 2,000,000
Michigan State Building Authority TECP
Notes (Canadian Imperial Bank LOC)
3.40% 4/9/98(b) A-1+ P-1 14,650 14,650,000
Strategic Fund (Consumer Power Co.)
PCR Series 1988A (Union Bank of
Switzerland LOC)
3.80% 4/1/98(a) -- P-1 3,900 3,900,000
-----------
20,550,000
-----------
Minnesota -- 0.3%
Becker PCR (Northern States Power)
3.60% 5/7/98(b) A-1+ P-1 3,000 3,000,000
-----------
Mississippi -- 1.0%
Jackson County Port Facility (Chevron
USA) Series 1993 DN
3.75% 4/1/98(a) -- P-1 9,300 9,300,000
-----------
Missouri -- 2.6%
Missouri Health & Education Facility
Authority (Sisters of Mercy)
Series D DN
3.65% 4/7/98(a) A-1+ VMIG-1 9,000 9,000,000
Missouri Health & Education Facility
Authority (Washington
University) DN
3.65% 4/7/98(a) A-1+ VMIG-1 8,600 8,600,000
Missouri Health & Education Facility
Authority RB (Sisters of Mercy) DN
3.65% 4/7/98(a) A-1+ VMIG-1 400 400,000
20
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating(d)
--------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Missouri (concluded)
Missouri Health & Education Facility
Authority RB (Washington University)
Series B DN
3.80% 4/1/98(a) A-1+ VMIG-1 $ 1,200 $ 1,200,000
Missouri Health & Education Facility
Hospital RB (Barnes Hospital Project)
DN (Morgan Guaranty LOC)
3.65% 4/7/98(a) A-1+ VMIG-1 5,000 5,000,000
-----------
24,200,000
-----------
Montana -- 1.4%
Forsyth PCR (Portland General Electric
Project) Series 1983-B DN (Swiss
Bank LOC)
3.65% 4/7/98(a) A-1+ P-1 12,400 12,400,000
-----------
New Jersey -- 0.6%
Gloucester County PCR (Mobil Oil
Refining Co. Project) Series 1993 DN
3.375% 4/7/98(a) A-1+ VMIG-1 600 600,000
Mercer County Improvement Authority
(Pooled Government Loan Project)
Series 1985 DN (Credit Suisse LOC)
3.25% 4/7/98(a) A-1+ VMIG-1 1,300 1,300,000
New Jersey Economic Development
Authority (Public Service Electric
& Gas Company) Series 1995A DN
(Swiss Bank LOC)
3.375% 4/7/98(a) A-1+ VMIG-1 3,300 3,300,000
-----------
5,200,000
-----------
New York -- 1.3%
Municipal Assistance Corporation for
New York City (Westdeutsche LOC) DN
3.50% 4/7/98(a) A-1+ VMIG-1 9,500 9,500,000
Syracuse IDA Civic Facility RB DN
(Morgan Guaranty LOC)
3.70% 4/1/98(a) A-1+ VMIG-1 2,500 2,500,000
-----------
12,000,000
-----------
North Carolina -- 2.8%
Charlotte-Mecklenburg Hospital Authority
Health Care RB DN
3.70% 4/7/98(a) A-1+ VMIG-1 9,600 9,600,000
21
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1998
Rating(d)
--------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
North Carolina (concluded)
North Carolina Medical Care Commission
(Moses H. Cone Memorial Hospital
Project) Series 1995 DN (Wachovia
Bank LOC)
3.70% 4/7/98(a) A-1+ VMIG-1 $ 1,200 $ 1,200,000
North Carolina Medical Care Commission
(Baptist Hospital Project)
Series 1992B DN
3.70% 4/7/98(a) A-1+ VMIG-1 3,000 3,000,000
North Carolina Medical Care Commission
RB (Baptist Hospital Project)
Series 1996 DN (Wachovia Bank LOC)
3.70% 4/7/98(a) A-1+ VMIG-1 5,700 5,700,000
North Carolina Medical Care Commission
RB (Moses H. Cone Memorial Hospital
Project) Series 1993 DN
(Wachovia Bank LOC)
3.70% 4/7/98(a) A-1+ VMIG-1 6,500 6,500,000
-----------
26,000,000
-----------
Ohio -- 4.6%
Clermont County Health Facilities
(Mercy Health System Project)
Series 1996A DN
3.65% 4/7/98(a) -- VMIG-1 20,100 20,100,000
Clermont County Health Facilities
(Mercy Health Systems Project)
Series 1994B DN
3.65% 4/7/98(a) A-1+ VMIG-1 17,400 17,400,000
Hamilton County Hospital Finance
Authority Revenue Bonds (Health
Alliance Hospital, Project Series B) DN
(Credit Suisse LOC)
3.75% 4/7/98(a) A-1+ VMIG-1 4,700 4,700,000
-----------
42,200,000
-----------
Oklahoma -- 1.5%
Oklahoma Industries Authority Hospital
RB (St. Anthony Parking Garage B)
(Morgan Guaranty LOC)
3.90% 6/1/98(b) -- VMIG-1 2,300 2,300,000
22
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating(d)
--------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Oklahoma (concluded)
Oklahoma Industries Authority Medical
Practice Facility RB (SSM Health Care
Obligated Group) (St. Anthony
Physicians Building Project)
(Morgan Guaranty LOC)
3.90% 6/1/98(b) -- VMIG-1 $ 6,445 $ 6,445,000
Oklahoma Water Resources Board State
Loan Program RB (Swiss Bank LOC)
Series 1995
3.55% 9/1/98(b) A-1+ -- 5,180 5,180,000
-----------
13,925,000
-----------
Oregon -- 3.6%
Kalmath Falls Electric Revenue Salt
Caves Hydroelectric Series D
(Escrowed In U.S. Treasuries)
4.50% 5/1/98(b) SP-1+ -- 17,500 17,509,065
Umatilla County Hospital Authority RB
(Catholic Health Initiatives) DN
3.70% 4/7/98(a) A-1+ VMIG-1 15,600 15,600,000
-----------
33,109,065
-----------
Pennsylvania -- 2.8%
Delaware County IDA Solid Waste
(Kimberly Clark Project)
Series 1984B DN
3.65% 4/7/98(a) A-1+ P-1 8,000 8,000,000
Emmaus General Authority Pooled
Loan Series 1996 DN (Financial
Security Assurance LOC)
3.75% 4/7/98(a) A-1+ VMIG-1 6,400 6,400,000
Pennsylvania Higher Education Facilities
Authority RB (Carnegie Mellon
University Project) Series 1995C DN
(Mellon Bank LOC)
3.75% 4/1/98(a) A-1+ -- 6,700 6,700,000
Pennsylvania Higher Education RB
(Carnegie Mellon Project)
Series 1995B DN, (LOC Union
Bank of Switzerland)
3.75% 4/1/98(a) A-1+ -- 4,100 4,100,000
-----------
25,200,000
-----------
23
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1998
Rating(d)
--------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
South Carolina -- 3.1%
Piedmont Municipal Power Agency
Electric Co. DN (Morgan
Guaranty LOC)
3.65% 4/7/98(a) A-1+ VMIG-1 $ 3,100 $ 3,100,000
Piedmont Municipal Power Agency
Electric RB Series B DN
(Credit Suisse LOC)
3.65% 4/7/98(a) A-1+ VMIG-1 20,000 20,000,000
Rock Hill Combined Utility System
RB DN (AMBAC Insurance LOC)
3.65% 4/7/98(a) A-1+ VMIG-1 5,000 5,000,000
-----------
28,100,000
Tennessee -- 0.9% -----------
Memphis GO Series A DN (Westdeutsche
Landesbank LOC)
3.80% 4/7/98(a) A-1+ VMIG-1 2,500 2,500,000
Tennessee GO BAN DN
3.65% 4/7/98(a) SP-1+ VMIG-1 6,000 6,000,000
-----------
8,500,000
-----------
Texas -- 14.7%
Board of Regents of The University
of Texas TECP Notes Series A
3.60% 5/8/98(b) A-1+ P-1 12,000 12,000,000
Board of Regents Texas A&M University
TECP Series 1998
3.10% 5/6/98(b) A-1+ P-1 15,000 15,000,000
City of Houston GO Series A
3.65% 5/1/98(b) A-1+ P-1 15,800 15,800,000
City of Houston GO Series A
3.50% 5/7/98(b) A-1+ P-1 10,000 10,000,000
City of Houston GO Series B
3.55% 5/1/98(b) A-1+ P-1 15,200 15,200,000
Harris County Toll Road Unlimited
Tax and Surbordinate Lien RB
Series G DN
3.65% 4/7/98(a) A-1+ VMIG-1 2,800 2,800,000
24
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating(d)
--------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Texas (concluded)
Harris County Toll Road Unlimited
Tax and Surbordinate Lien RB
Series H DN
3.65% 4/7/98(a) A-1+ VMIG-1 $12,600 $ 12,600,000
Harris County IDA PCRB Exxon Corp.
Series 1984A DN
3.75% 4/1/98(a) A-1+ -- 5,000 5,000,000
Lower Colorado River Authority
Commercial Paper Notes
(Morgan Guaranty LOC)
3.35% 5/21/98(b) A-1+ P-1 15,200 15,200,000
San Antonio Electric and Gas Systems
Commercial Paper Notes
3.40% 5/6/98(b) -- P-1 9,500 9,500,000
Texas Higher Education Authority
Facilities Revenue Series 85b
(FGIC Insurance) DN
3.70% 4/7/98(a) A-1+ VMIG-1 3,460 3,460,000
Texas State TRAN
4.75% 8/31/98(b) SP-1 MIG 4,000 4,014,589
Texas State Veterans Housing Assistance
Fund DN
3.65% 4/7/98(a) A-1+ VMIG-1 5,995 5,995,000
Travis County Health Facilities
(Charity Obligation Group)
Series E DN
3.65% 4/7/98(a) A-1+ VMIG-1 7,800 7,800,000
------------
134,369,589
------------
Utah -- 1.2%
Salt Lake City Flexible Rate RB
(Pooled Hospital Financing
Program) DN
3.65% 4/7/98(a) A-1+ VMIG-1 11,350 11,350,000
------------
Virginia -- 0.3%
Hampton Roads Regional Jail Authority
Series 1996B DN (Wachovia Bank LOC)
3.60% 4/7/98(a) A-1+ VMIG-1 2,500 2,500,000
------------
25
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Asets March 31, 1998
Rating(d)
--------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Washington -- 1.6%
Chelan County Public Utility District No. 1
(Chelan Hydro Consolidated System)
Series 1995a DN (Credit Suisse LOC)
3.60% 4/7/98(a) A-1+ VMIG-1 $ 2,700 $ 2,700,000
King County Sewer Authority
Series A TECP
3.55% 5/12/98(b) A-1 P-1 12,000 12,000,000
-----------
14,700,000
-----------
Wisconsin -- 1.9%
Oak Creek PCR (Wisconsin Electric
Power Co. Project) DN
3.70% 4/7/98(a) -- P-1 3,200 3,200,000
Pleasant Prairie Village PCR Refunding
(Wisconsin Electric Power Co.
Project) DN
3.75% 4/7/98(a) A-1+ P-1 10,000 10,000,000
Wisconsin State Health & Educational
Facilities Authority RB Series 1997F DN
3.65% 4/7/98(a) A-1+ VMIG-1 4,300 4,300,000
-----------
17,500,000
-----------
Wyoming -- 1.5%
Lincoln County PCR (Amoco Standard
Oil Co. Project) DN
3.75% 4/1/98(a) A-1+ -- 7,175 7,175,000
Unita County PCR (Chevron) Series
93 DN
3.85% 4/1/98(a) A-1+ VMIG-1 6,350 6,350,000
-----------
13,525,000
-----------
26
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
TAX-FREE SERIES Value
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.7% $914,936,309(c)
OTHER ASSETS IN EXCESS OF LIABILITIES, NET -- 0.3% 2,931,367
------------
NET ASSETS-- 100.0% $917,867,676
------------
Net Asset Value, Offering and Redemption Price Per:
Tax-Free Retail Share
($841,184,924 / 841,258,030 shares outstanding) $1.00
=====
Tax-Free Institutional Share
($76,682,752 / 76,682,889 SHARES OUTSTANDING) $1.00
=====
(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 March 31, 1998.
(b) Security has an outstanding call, mandatory put or optional put by the
issuer. Par value and maturity date reflect such call or put.
(c) Aggregate cost for financial reporting and federal tax purposes.
(d) The credit ratings are not covered by the report of independent auditors.
27
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1998
TAX-FREE SERIES (concluded)
- --------------------------------------------------------------------------------
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.
See Notes to Financial Statements.
28
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Operations
For the year ended March 31, 1998
Prime Treasury Tax-Free
Series Series Series
- --------------------------------------------------------------------------------
Investment Income:
Interest income $184,011,736 $39,284,838 $28,391,393
------------ ----------- -----------
Expenses:
Investment advisory fees 8,582,839 1,813,575 2,115,501
Distribution fee 8,299,915 1,700,377 1,784,579
Transfer agent fees 2,661,928 274,991 162,558
Custodian fees 349,351 86,735 63,076
Directors' fees 232,075 24,983 32,577
Registration fees 1,001,689 74,183 133,587
Miscellaneous 933,217 272,982 183,315
------------ ----------- -----------
Total expenses 22,061,014 4,247,826 4,475,193
Less: Fees waived (136,191) -- --
------------ ----------- -----------
Net expenses 21,924,823 4,247,826 4,475,193
------------ ----------- -----------
Net investment income 162,086,913 35,037,012 23,916,200
------------ ----------- -----------
Net realized gain (loss) from security
transactions -- 20,785 (1,994)
------------ ----------- -----------
Net increase in net assets resulting
from operations $162,086,913 $35,057,797 $23,914,206
============ =========== ===========
See Notes to Financial Statements.
29
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets March 31, 1998
PRIME SERIES
- --------------------------------------------------------------------------------
Year Ended Year Ended
March 31, March 31,
1998 1997
---------- ----------
Increase/(Decrease) in Net Assets
Operations:
Net investment income $ 162,086,913 $ 132,679,566
Net realized gain/(loss) on sales of
investments -- 13,047
-------------- --------------
Net increase in net assets resulting
from operations 162,086,913 132,692,613
Distributions to Shareholders From:
Net investment income:
BT Alex. Brown Cash Reserve Prime, Treasury
and Tax-Free Shares, respectively (138,011,807) (119,826,842)
BT Alex. Brown Cash Reserve
Institutional Shares (13,656,968) (4,256,297)
Flag Investors Class A Shares (341,197) (295,562)
Flag Investors Class B Shares (12,545) (1,260)
Quality Cash Reserve Prime Shares (10,064,396) (8,299,605)
------------- --------------
Total distributions (162,086,913) (132,679,566)
Capital Share Transactions, Net 849,945,486 264,670,792
-------------- --------------
Total increase in net assets 849,945,486 264,683,839
Net Assets:
Beginning of period 2,867,463,614 2,602,779,775
-------------- --------------
End of period $3,717,409,100 $2,867,463,614
============== ==============
30
<PAGE>
<TABLE>
<CAPTION>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- -------------------------------------------------------------------------------------------------------------------------------
TREASURY SERIES TAX-FREE SERIES
- -------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
March 31, March 31, March 31, March 31,
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S><C>
Increase/(Decrease) in Net Assets
Operations:
Net investment income $ 35,037,012 $ 33,069,786 $ 23,916,200 $ 16,906,007
Net realized gain/(loss) on sales of
investment 20,785 1,180 (1,994) 15,016
------------ -------------- ------------ ------------
Net increase in net assets resulting
from operations 35,057,797 33,070,966 23,914,206 16,921,023
Distributions to Shareholders From:
Net investment income:
BT Alex. Brown Cash Reserve Prime, Treasury
and Tax-Free Shares, respectively (31,623,993) (30,533,284) (21,792,392) (16,906,007)
BT Alex. Brown Cash Reserve
Institutional Shares (3,413,019) (2,536,502) (2,123,808) --
Flag Investors Class A Shares -- -- -- --
Flag Investors Class B Shares
Quality Cash Reserve Prime Shares -- -- -- --
------------ ------------ ------------ ------------
Total distributions (35,037,012) (33,069,786) (23,916,200) (16,906,007)
Capital Share Transactions, Net 157,532,323 21,015,478 270,657,645 75,690,009
------------ ------------ ------------ ------------
Total increase in net assets 157,553,108 21,016,658 270,655,651 75,705,025
Net Assets:
Beginning of period 739,653,573 718,636,915 647,212,025 571,507,000
------------ ------------ ------------- ------------
End of period $897,206,681 $739,653,573 $917,867,676 $647,212,025
============ ============ ============ ============
</TABLE>
31
See Notes to Financial Statements.
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each year)
BT ALEX. BROWN CASH RESERVE PRIME SHARES
- --------------------------------------------------------------------------------
Year ended
March 31,
--------------
1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
Income from Investment Operations: --------------
Net investment income 0.0494
Less Distributions:
Dividends from net investment income and/or
short-term gains (0.0494)
--------------
Net asset value at end of period $ 1.00
==============
Total Return:
Based on net asset value per share 5.05%
Ratios to Average Daily Net Assets:
Expenses 0.67%
Net investment income 4.94%
Supplemental Data:
Net assets at end of period $3,164,537,551
Number of shares outstanding at end of period 3,164,529,071
32
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- -------------------------------------------------------------------------------
BT ALEX. BROWN CASH RESERVE PRIME SHARES (continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year 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 and/or
short-term gains (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 2,545,523,885 2,386,684,392 1,472,077,488 1,350,332,916
</TABLE>
See Notes to Financial Statements.
33
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- -------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each year)
FLAG INVESTORS CASH RESERVE PRIME SHARES--CLASS A
- -------------------------------------------------------------------------------
Year ended
March 31,
-----------
1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
Income from Investment Operations: ----------
Net investment income 0.0494
Less Distributions:
Dividends from net investment income and/or
short-term gains (0.0494)
----------
Net asset value at end of period $ 1.00
==========
Total Return:
Based on net asset value per share 5.05%
Ratios to Average Daily Net Assets:
Expenses 0.67%
Net investment income 4.94%
Supplemental Data:
Net assets at end of period $7,736,785
Number of shares outstanding at end of period 7,736,522
34
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- -------------------------------------------------------------------------------
FLAG INVESTORS CASH RESERVE PRIME SHARES--CLASS A (continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year 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 and/or
short-term gains (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% 4.46% 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.
35
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each year)
FLAG INVESTORS CASH RESERVE PRIME SHARES--CLASS B
- --------------------------------------------------------------------------------
Year ended
March 31,
---------
1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
Income from Investment Operations: --------
Net investment income 0.0418
Less Distributions:
Dividends from net investment income and/or
short-term gains (0.0418)
--------
Net asset value at end of period $ 1.00
========
Total Return:
Based on net asset value per share 4.27%
Ratios to Average Daily Net Assets:
Expenses 1.42%
Net investment income 4.18%
Supplemental Data:
Net assets at end of period $184,382
Number of shares outstanding at end of period 184,382
- ----------
(1) Commencement of operations.
(2) Annualized.
36
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- -------------------------------------------------------------------------------
FLAG INVESTORS CASH RESERVE PRIME SHARES--CLASS B (continued)
- -------------------------------------------------------------------------------
April 3, 1995(1)
Year ended through
March 31, March 31,
------------- ---------------
1997 1996
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
-------- -------
Income from Investment Operations:
Net investment income 0.0414 0.0361
Less Distributions:
Dividends from net investment income and/or
short-term gains (0.0414) (0.0361)
-------- --------
Net asset value at end of period $ 1.00 $ 1.00
======== ========
Total Return:
Based on net asset value per share 4.22% 3.69%
Ratios to Average Daily Net Assets:
Expenses 1.38% 1.38%(2)
Net investment income 4.14% 4.30%(2)
Supplemental Data:
Net assets at end of period $227,098 $10,200
Number of shares outstanding at end of period 227,098 10,200
See Notes to Financial Statements.
37
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each year)
BT ALEX. BROWN CASH RESERVE PRIME INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------
Year ended
March 31,
------------
1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
Income from Investment Operations: ------------
Net investment income 0.0519
Less Distributions:
Dividends from net investment income and/or
short-term gains (0.0519)
------------
Net asset value at end of period $ 1.00
============
Total Return:
Based on net asset value per share 5.31%
Ratios to Average Daily Net Assets:
Expenses 0.42%
Net investment income 5.22%
Supplemental Data:
Net assets at end of period $317,971,693
Number of shares outstanding at end of period 317,971,413
38
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- -------------------------------------------------------------------------------
BT ALEX. BROWN CASH RESERVE PRIME INSTITUTIONAL SHARES (continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year 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 and/or
short-term gains (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.
39
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each year)
QUALITY CASH RESERVE PRIME SHARES
- --------------------------------------------------------------------------------
Year ended
March 31,
------------
1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
Income from Investment Operations: ------------
Net investment income 0.0465
Less Distributions:
Dividends from net investment income and/or
short-term gains (0.0465)
------------
Net asset value at end of period $ 1.00
============
Total Return:
Based on net asset value per share 4.75%
Ratios to Average Daily Net Assets:
Expenses 0.96%(1)
Net investment income 4.66%(2)
Supplemental Data:
Net assets at end of period $226,978,689
Number of shares outstanding at end of period 226,978,007
- ----------
(1) Ratio of expenses to average net assets prior to partial fee waivers assumed
was 1.02%, 0.98% and 0.95% for the years ended March 31, 1998, 1997 and
1996, respectively.
(2) Ratio of net investment income to average net assets prior to partial fee
waivers was 4.60%, 4.43% and 4.86% for the years ended March 31, 1998, 1997
and 1996, respectively.
40
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- -------------------------------------------------------------------------------
QUALITY CASH RESERVE PRIME SHARE (continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year 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 and/or
short-term gains (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.
<PAGE> 41
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each year)
BT ALEX. BROWN CASH RESERVE TREASURY SHARES
- --------------------------------------------------------------------------------
Year ended
March 31,
------------
1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
Income from Investment Operations: ------------
Net investment income 0.0464
Less Distributions:
Dividends from net investment income and/or
short-term gains (0.0464)
------------
Net asset value at end of period $ 1.00
============
Total Return:
Based on net asset value per share 4.74%
Ratios to Average Daily Net Assets:
Expenses 0.59%
Net investment income 4.65%
Supplemental Data:
Net assets at end of period $798,426,658
Number of shares outstanding at end of period 798,354,129
----------
(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.
42
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- -------------------------------------------------------------------------------
BT ALEX. BROWN CASH RESERVE TREASURY SHARES (continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year 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 and/or
short-term gains (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.
43
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- -------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each year)
BT ALEX. BROWN CASH RESERVE TREASURY INSTITUTIONAL SHARES
- -------------------------------------------------------------------------------
Year ended
March 31,
- -------------------------------------------------------------------------------
1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
-------
Income from Investment Operations:
Net investment income 0.0489
Less Distributions:
Dividends from net investment income and/or
short-term gains (0.0489)
-------
Net asset value at end of period $ 1.00
=======
Total Return:
Based on net asset value per share 5.00%
Ratios to Average Daily Net Assets:
Expenses 0.34%
Net investment income 4.91%
Supplemental Data:
Net assets at end of period $98,780,023
Number of shares outstanding at end of period 98,768,925
- ----------
(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
fee waivers was 4.14% and 2.80% for the years ended March 31, 1995 and 1994,
respectively.
44
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
BT ALEX. BROWN CASH RESERVE TREASURY INSTITUTIONAL SHARES (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year 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 and/or
short-term gains (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 0.36% 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 51,813,226 14,046,467 39,688,259
</TABLE>
See Notes to Financial Statements.
45
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each year)
BT ALEX. BROWN CASH RESERVE TAX-FREE SERIES
- --------------------------------------------------------------------------------
Year ended
March 31,
----------
1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
-------
Income from Investment Operations:
Net investment income 0.0306
Less Distributions:
Dividends from net investment income and
short-term gains (0.0306)
-------
Net asset value at end of period $ 1.00
=======
Total Return:
Based on net asset value per share 3.10%
Ratios to Average Daily Net Assets:
Expenses 0.60%
Net investment income 3.05%
Supplemental Data:
Net assets at end of period $841,184,924
Number of shares outstanding at end of period 841,258,030
- ------------------------------------------------------------------------------
46
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
BT ALEX. BROWN CASH RESERVE TAX-FREE SERIES (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year 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 and
short-term gains (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.
47
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
BT ALEX. BROWN CASH RESERVE TAX-FREE INSTITUTIONAL SERIES
- --------------------------------------------------------------------------------
June 1, 1997(1)
through
March 31,
---------------
1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
-----------
Income from Investment Operations:
Net investment income 0.0273
Less Distributions:
Dividends from net investment income and
short-term gains (0.0273)
-----------
Net asset value at end of period $ 1.00
===========
Total Return:
Based on net asset value per share 2.76%
Ratios to Average Daily Net Assets:
Expenses .35%(2)
Net investment income 3.29%(2)
Supplemental Data:
Net assets at end of period $76,682,752
Number of shares outstanding at end of period 76,682,889
- ----------
(1) Commencement of operations.
(2) Annualized.
48
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements
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 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.
49
<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 cost of 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.
PNC Institutional Management Corporation ("PIMC") has been the sub-advisor
for the Tax-Free Series through the fiscal year ending March 31, 1998. As
compensation for its subadvisory services, ICC paid PIMC a fee. This fee was
calculated daily and paid monthly, at the following annual rates based upon the
Tax-Free Series' aggregate average daily net assets: .15% of the first $250
million, .13% of the next $250 million, .11% of the next $250 million,
.09% of the next $250 million, .075% of the next $3 billion and .06% of the
amount over $4 billion. For the year ended March 31, 1998, ICC paid PIMC
50
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
NOTE 2--continued
$1,119,488 for sub-advisory services for the Tax-Free Series. Effective April 1,
1998 sub-advisory services will no longer be provided to the Fund.
As compensation for its accounting services, the Prime Series and Treasury
Series pay ICC an annual fee that is calculated daily and paid monthly from the
two series' average daily net assets. The Prime Series paid $162,781 and the
Treasury Series paid $127,485 for accounting services for the year ended March
31, 1998.
As compensation for its accounting services, the Tax-Free Series pays PFPC
Inc. ("PFPC"), an affiliate of PIMC, an annual fee that is calculated daily and
paid monthly from its average daily net assets. The Tax-Free Series paid $66,777
to PFPC for accounting services for the year ended March 31, 1998. Effective
April 1, 1998 ICCbegan to perform accounting services for the Tax-Free Series.
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
$2,661,928, the Treasury Series paid $274,991 and the Tax-Free Series paid
$162,558 to ICC for transfer agent services for the year ended March 31, 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 year
ended March 31, 1998, Distribution fees aggregated $6,983,764, $17,244,
$1,700,377 and $1,784,579 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 $1,295,907 for the
year ended March 31, 1998 and 1.00% of the Flag Investors Class B Shares'
aggregate average daily net assets or $3,000. Prior to September 1, 1997 Alex
Brown and Sons, Inc. served as the Fund's distributor for the same rate of
compensation and on substantially the same terms as ICC Distributors and earned
$2,742,862 for the Prime Shares, $7,178 for Flag Investors Class A Shares,
$507,956 for Quality Cash Shares, $1,266 for Flag Investors Class B Shares,
$655,375 for Treasury Shares, and $692,546 for Tax Free Shares for the year
ended March 31, 1998.
ICC and ICC Distributors may voluntarily waive or reimburse 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 and
reimbursements are not contractual and could change. Any reimbursements by ICC,
or ICC Distributors are limited to the fees they actually receive for the fiscal
year. ICC did not waive any advisory fees for the year ended March 31, 1998. BT
Alex. Brown voluntarily waived distribution fees of $54,321 for the Quality Cash
Shares for the period ended August 31, 1997 and ICCDistributors waived $81,870
for the period September 1, 1997 to March 31, 1998.
51
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
NOTE 2--concluded
Effective September 22, 1997, Bankers Trust Company, a subsidiary of
Bankers Trust Corporation, became the Fund's custodian. Prior to September 22,
1997, PNC Bank served as the Fund's custodian. From September 22, 1997 to March
31, 1998, the Prime Series, Treasury Series, and Tax-Free Series paid $162,613,
$43,249, and $31,538 in custody expenses, respectively.
The Fund's complex offers a retirement plan for eligible Directors. The
actuarially computed pension expense allocated to the Fund for the year ended
March 31, 1998 was $104,755 for the Prime Series, $32,916 for the Treasury
Series and $27,859 for the Tax-Free Series. The accrued liability at March 31,
1998 was $222,192 for the Prime Series, $79,512 for the Treasury Series and
$69,283 for the Tax-Free Series.
NOTE 3--Capital Stock and Share Information
The Fund is authorized to issue up to 6.4 billion shares of $.001 par value
capital stock (3.55 billion Prime Series, 1.5 billion Treasury Series, 1 billion
Tax-Free Series and 350 million undesignated). Transactions in shares of the
Fund were as follows:
March 31, 1998 March 31, 1997
-------------- --------------
Prime Series:
Sold:
Prime Shares 23,206,115,785 22,263,288,298
Flag Investors Class A Shares 6,559,775 9,331,912
Flag Investors Class B Shares 336,592 328,144
Institutional Prime Shares 4,625,290,052 912,825,877
Quality Cash Shares 1,179,123,143 1,001,597,821
Issued as reinvestment of dividends:
Prime Shares 129,425,606 113,931,978
Flag Investors Class A Shares 326,541 281,420
Flag Investors Class B Shares 8,133 1,264
Institutional Prime Shares 9,131,786 3,084,567
Quality Cash Shares 9,723,053 8,045,624
Redeemed:
Prime Shares (22,716,536,205) (22,218,380,783)
Flag Investors Class A Shares (5,671,105) (9,068,618)
Flag Investors Class B Shares (387,440) (112,510)
Institutional Prime Shares (4,434,262,192) (851,798,212)
Quality Cash Shares (1,159,238,038) (968,685,990)
--------------- ---------------
Net increase 849,945,486 264,670,792
=============== ===============
52
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (concluded)
NOTE 3--concluded
March 31, 1998 March 31, 1997
-------------- --------------
Treasury Series:
Sold:
Treasury Shares 3,641,511,991 4,075,840,415
Institutional Treasury Shares 590,751,899 458,391,680
Issued as reinvestment of dividends:
Treasury Shares 30,209,607 29,377,891
Institutional Treasury Shares 2,007,274 1,597,049
Redeemed:
Treasury Shares (3,551,758,854) (4,093,588,948)
Institutional Treasury Shares (555,189,594) (450,602,609)
--------------- --------------
Net increase 157,532,323 21,015,478
=============== ==============
Tax-Free Series:
Sold:
Tax Free Shares 5,853,542,023 5,222,168,283
Institutional Tax Free Shares 730,445,736 --
Issued as reinvestment of dividends:
Tax Free Shares 20,778,337 16,162,636
Institutional Tax Free Shares 276,010 --
Redeemed:
Tax Free Shares (5,680,345,603) (5,162,640,910)
Institutional Tax Free Shares (654,038,858) --
-------------- --------------
Net increase 270,657,645 75,690,009
============== ==============
NOTE 4--Net Assets
<TABLE>
<CAPTION>
Prime Treasury Tax-Free
Series Series Series
-------------- ------------ ------------
<S><C>
Paid-in capital $3,717,402,132 $897,118,866 $917,940,919
Undistributed net investment income 8,488 -- --
Undistributed net realized gain/(loss)
on sales of investments (1,520) 87,815 (73,243)
-------------- ------------ ------------
$3,717,409,100 $897,206,681 $917,867,676
============== ============ ============
</TABLE>
NOTE 5--Shareholder Meeting
Alex. Brown Incorporated, which was the parent corporation of the Fund's
investment advisor, merged into a subsidiary of Bankers Trust Corporation on
September 1, 1997. Due to the change in control of Alex. Brown Incorporated,
the BT Alex. Brown Cash Reserve Fund held a special meeting of its shareholders
on August 14, 1997. During the meeting, shareholders approved a new Investment
Advisory Agreement between the Fund and each of its Series, and ICC and a
new Sub-Advisory Agreement among the Tax-Free Series, ICC, and PIMC. The
new agreements are substantially the same as the former agreements. In
addition, shareholders elected the following Directors: James J. Cunnane,
Richard T. Hale, John F. Kroeger, Louis E. Levy, Eugene J. McDonald, Rebecca W.
Rimel, Truman T. Semans, and Carl W. Vogt.
53
<PAGE>
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Shareholders and Board of Directors of
BT Alex. Brown Cash Reserve Fund, Inc.
We have audited the accompanying statements of net assets of BT Alex. Brown
Cash Reserve Fund, Inc. (consisting of the Prime, Treasury and Tax-Free Series)
as of March 31, 1998, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended and the financial highlights for each of the five years in the
period then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
March 31, 1998 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective Series comprising the BT Alex. Brown Cash Reserve Fund,
Inc. as of March 31, 1998, and the results of their operations for the year then
ended, the changes in their net assets for each of the two years in the period
then ended and their financial highlights for each of the five years in the
period then ended, in conformity with generally accepted accounting principles.
COOPERS &LYBRAND L.L.P.
Philadelphia, Pennsylvania
May 1, 1998
54
<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 determine if any portion of the dividends
you received are exempt from state income tax.
- --------------------------------------------------------------------------------
55
Board of Directors
- --------------------------------------------------------------------------------
RICHARD T. HALE EUGENE J. McDONALD
Chairman Director
JAMES J. CUNNANE REBECCA W. RIMEL
Director Director
JOHN F. KROEGER 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. COOPERS & LYBRAND L.L.P.
One South Street 2400 Eleven Penn Center
Baltimore, MD 21202 Philadelphia, PA 19103
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.
56
<PAGE>
Fund Features
- --------------------------------------------------------------------------------
o Daily Dividends
The Fund declares dividends daily and distributes them monthly in the form of
additional shares or, at your option, credits the dividends in cash to your
account at BT Alex. Brown.
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 Purchases by Mail
You may purchase shares by mailing a check and a completed order form to the
Fund at P.O. Box 1346, Baltimore, MD 21203. Order forms may be obtained from
your BT Alex. Brown investment representative.
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 Automatic Purchase and Sale
You may participate in a program that results in the automatic purchase and
sale of Fund shares in conjunction with security transactions as well as cash
balances accumulated in your BT Alex. Brown accounts.
o Constant Net Asset Value
The Fund will attempt to maintain a constant net asset value of $1.00 per
share. Since the Fund's inception on August 11, 1981, a constant net asset
value of $1.00 per share has been maintained for each series.
o Minimum Investment
The minimum initial investment is $1,500. Subsequent investments may be made
in an amount of $100 or more. The minimum amounts do not apply if you
participate in the automatic purchase and sale program.
o Current Yield Information Available
For current yield information, call (410) 895-5995.
<PAGE>
[BT Alex. Brown Logo]
BALTIMORE, MD 21202
One South Street
(410) 727-1700
================================================================================
ANNAPOLIS, MD 21403 NEW YORK, NY 10104
410 Severn Avenue, Suite 202-204 1290 Avenue of the Americas,
(410) 268-4040 10th Floor
(212) 237-2000
ATLANTA, GA 30305
One Piedmont Center, Suite 400 PHILADELPHIA, PA 19103
3565 Piedmont Road, N.E. 1635 Market Street, 17th Floor
(404) 261-1000 (215) 563-2300
BOSTON, MA 02110 RICHMOND, VA 23219
101 Federal Street, 15th Floor 100 Shockoe Slip
(617) 737-8181 (804) 644-8000
CHICAGO, IL 60606 SAN FRANCISCO, CA 94111
The USG Building, Suite 1900 101 California Street, 46th Floor
222 West Adams Street (415) 544-2800
(312) 424-6000
TOKYO 105, JAPAN
DALLAS, TX 75201 Shiroyama Jt. Mori Building
200 Crescent Court, Suite 500 12F, 4-3-1 Toranomon,
(214) 740-7700 Minato-Ku, Tokyo 105
011-813-5401-2270
FISHKILL, NY 12524
300 Westage Bus. Ctr., Suite 310 TOWSON, MD 21204
(914) 897-4900 210 W. Pennsylvania Ave., Ste. 260
(410) 825-8600
GENEVA, SWITZERLAND (1204)
7, Rue du Rhone, 1st Floor WASHINGTON, DC 20005
011-41-22-312-4000 500 The Washington Building
1440 New York Ave., N.W.
GREENWICH, CT 06830 (202) 626-7000
One Pickwick Plaza
(203) 869-5555 PALM BEACH, FL 33480
350 Royal Palm Way, 5th Floor
JACKSONVILLE, FL 32202 (561) 832-4488
200 West Forsyth Street, Suite 1520
(904) 355-0643 WINSTON-SALEM, NC 27101
200 West Second Street, Suite 500
LONDON, ENGLAND EC2N 2HE (910) 724-6921
Austin Friars House
2-6 Austin Friars, 2nd Floor
011-44-171-786-7410
LOS ANGELES, CA 90017
601 South Figueroa St., Suite 3650
(213) 892-0500
(C) BY BT ALEX. BROWN INCORPORATED
- -----------
Information may be obtained and shares may be purchased through any of the
offices listed above.
<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
--------------
