BT ALEX. BROWN
CASH RESERVE
FUND, INC.
Prime Series
Treasury Series
Tax-Free Series
Annual Report
March 31, 1999
[BT ALEX. BROWN LOGO]
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Fund Features
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o Daily Dividends
The Fund declares dividends daily and distributes them monthly in the form of
additional shares.
o Check Redemption Privilege
After completing an authorization form, you may redeem your shares by writing
a check (in a minimum amount of $500) on your account. You will continue to
earn dividends until your check reaches the bank for clearance.
o No Sales Charge and Immediate Liquidity
You may buy or redeem shares in your account at any time. There is no sales
charge or penalty imposed by the Fund for the purchase or redemption of shares
(other fees and expenses do apply to a continued investment in the Fund and
are described in the prospectus.)
o Constant Net Asset Value
The Fund will attempt to maintain a constant net asset value of $1.00 per
share and has done so since its inception on August 11, 1981. Although the
Fund seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund. An investment in a money
market fund is neither insured nor guaranteed by the Federal Deposit Insurance
Corporation or any other government agency.
o Minimum Investment
The minimum initial investment is $1,500. Subsequent investments may be made
in amounts of $100 or more.
o Current Yield Information Available
For current yield information, call (410) 895-5995.
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Letter to Shareholders
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We are pleased to report on the progress of your Fund for the twelve months
ended March 31, 1999. At the end of the period, the Fund's net assets totaled
$6,285,020,216, an increase of more than 13% from March 31, 1998. The
distribution of the Fund's assets among its three series is illustrated in the
following chart.
[GRAPHIC In the printed version of the document,
a pie chart appears which depicts the following plot points]
$4.2 billion Prime Series
$939 million Treasury Series
$1.1 billion Tax-Free Series
MARKET ACTIVITY
The major force that dominated the money markets through the Fund's fiscal
year was the global financial crisis that began in Southeast Asia and spread to
countries around the world. The widening crisis, in turn, caused the Federal
Reserve Board to change monetary policy.
Domestically, the combination of a strong economy and low inflation allowed
the Federal Reserve Board to keep interest rates unchanged at 5.5% through the
second calendar quarter of 1998. But during the third quarter, investors began
to focus more heavily on the Asian crisis and on the political problems in the
Clinton administration. This uncertainty was followed by high volatility in the
money markets, as Russia devalued its currency and defaulted on its debt, weak
commodity prices dampened economic outlooks in Latin America, and concerns
regarding other foreign nations' potential problems surfaced. Investors began
scrambling for the greater liquidity and perceived safety of U.S. Treasury
securities and a major flight to quality was underway.
Still in the third calendar quarter, the announcement of a Federal
Reserve-orchestrated bailout package for a large hedge fund forced market
participants to understand that exposure to the Russian debacle was more
widespread than previously anticipated. In turn, corporate credit spreads
widened significantly. This led to a further rally in U.S. Treasuries plus
significant buying of high quality domestic securities.
The Federal Reserve effectively battled escalating illiquidity and investors'
growing risk aversion with three rapid moves, lowering interest rates a total of
three-quarters of a percent from September through November 1998. The market
responded favorably to the official easing of monetary policy. Rate spreads
between U.S. Treasuries and corporate securities began to narrow, and the flight
to quality premium was taken out of the Treasury market. Also fueling positive
bond market sentiment was a plunge in oil prices and other commodities to their
lowest levels in decades.
1
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Letter to Shareholders (continued)
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Even with all of these turbulent forces, the money market yield curve
remained relatively flat through mid-September, when an inversion at the short
end of the curve began. This inverted yield spread attracted investors to the
short end of the curve. By the end of the year, the yield curve steepened to a
slightly positive position, and the money markets continued to return to normal
in the first quarter of 1999.
The tax-exempt money market yield curve did not experience the temporary
inversion, as dealers cheapened inventory to offset usual seasonal corporate
selling, thus dramatically increasing short-term yields. The short-term
tax-exempt market also experienced a sharp fall in new issue volume, reflecting
states' improved liquidity positions as a result of strong increases in personal
income and sales tax receipts. Municipal note volume overall declined 25% in
1998 over 1997, and state note issuance declined 49% year over year. This trend
continued into the first quarter of 1999. The decline in supply of both notes
and variable rate paper coupled with record growth in money market assets
resulted in a sharp reduction in short-term tax-exempt yields.
INVESTMENT REVIEW
We continue to manage the Fund conservatively, maintaining high portfolio
quality, adjusting weighted average maturities in response to market conditions,
and strictly limiting exposure to any particular issue. Evidence of our
insistence on these unusually high investment standards can be found in Standard
& Poor's (S&P) ratings of each Fund Series. The Prime, Treasury, and Tax-Free
Series each maintain a "AAAm" rating. This rating is the highest that S&P awards
to money market funds. We have always believed that a money fund is not a place
to take chances or to speculate for additional yield. At the same time, we are
pleased to have generated competitive returns for each of the Fund's Series, as
seen in the table below.
Prime Series
Our strategy in this Series continued to be concentrated on investing in high
quality issues. As of March 31, 1999, 88.4% of the Series was invested in U.S.
commercial paper, 7.0% in U.S. certificates of deposit, 2% in repurchase
agreements, 1.5% in corporate floating rate securities, and 1.1% in government
agency securities. With certain exceptions for specific supply/demand
situations, we maintained a weighted average maturity of 40 to 50 days for most
of the annual period. At March 31, 1999, the Series weighted average maturity
stood at 44 days.
Treasury Series
U.S. Treasuries were the primary beneficiaries of the high-volume flight to
quality through most of 1998, as investors sought relative stability and a
haven of
2
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Letter to Shareholders (continued)
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Performance Comparisons
(For the 7-day current yield at March 31, 1999)
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BT Alex. Brown Cash Reserve Fund Prime Series 4.27%
First Tier Money Fund Average 4.22%
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BT Alex. Brown Cash Reserve Fund Treasury Series 3.97%
100% U.S. Treasury Money Fund Average 4.01%
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BT Alex. Brown Cash Reserve Fund Tax-Free Series 2.39%
Tax-Free Money Fund Average 2.39%
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Source: IBC/Donoghue, Inc. "Money Fund Report," April 2, 1999.
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. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
Fund. The Money Fund Averages are average yields of all funds in their
respective categories.
safety from global economic turmoil. However, the U.S. Treasury sector's
performance was then impacted during the first quarter of 1999 by reduced
concerns over international turmoil and increased investor demand for the higher
yields offered by other fixed income sectors. The U.S. Treasury Index was also
dragged down by the birth of the Euro currency, Brazilian devaluation, and heavy
merger activity and booming debt origination in the U.S. We maintained a
weighted average maturity of 45-55 days range in this Series, with the
portfolio's weighted average maturity on March 31, 1999 at 46 days. At the end
of the period, 71.5% of the portfolio was invested in short-term Treasury bills
and 28.5% in short-term Treasury notes.
Tax-Free Series
We adjusted the weighted average maturity within a wider range in this Series
compared to the other two Series, given annual seasonal phenomena within the
tax-free sector. For example, in April, the short end of the municipal money
market curve became very attractive based on outflows associated with tax
season. The Fund was able to take advantage of these higher rates due to its
large percentage of variable rate holdings and its short average maturity of 28
days at the time. The Fund extended its average maturity in May and June to
offset some of the pressures on fixed rate paper associated with the beginning
of annual note season for many municipalities. This strategy proved to be
effective, as one year notes rallied 0.15% by the end of the second calendar
quarter. In July and August, the Fund maintained its weighted average maturity
around the 44-45 day mark. In September, the Fund extended to 50 days to take
advantage of the market rally that continued from mid-August based on both the
sell-off in equities and the Federal Reserve Board's easing of monetary policy
on September 29th.
3
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Letter to Shareholders (continued)
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The Series stayed within the 50-55 day range through November as the Fed
continued to ease rates. Average maturity was shortened to 41 days in December
to offset potential year-end outflows and in anticipation of the Fed being on
hold. In fact, outflows were not as dramatic as in prior years and the Fund
actually ended the month with positive inflows. The Fund continued to shorten
average maturity to a 34 to 38 day range through most of the first quarter of
1999, as it became evident that the Fed had completed its round of monetary
easings. It then moved to a neutral position of 43 days on March 31, 1999, after
increasing its holdings in commercial paper offering attractive relative yields.
The Tax-Free Series' net assets grew approximately 23% over the Fund's fiscal
year, well ahead of its peer group.
LOOKING AHEAD
We anticipate that despite softness in some key employment statistics toward
the end of the Fund's annual period, the U.S. labor market and the U.S. economy
remain strong. Consumer fundamentals remain favorable, consumer spending shows
no signs of slowing, and housing activity is still high. Indeed, even the
industrial sector, which has been the weak link in the U.S. economic juggernaut,
has begun to show signs of life. Further, recent data suggest that underlying
inflation pressures remain tame, despite some uptick in energy prices. Given
this scenario, we believe the Federal Reserve Board is likely to stay on hold at
least into the summer.
In turn, the U.S. money markets should remain fairly positive throughout
most of 1999.
For the Prime Series, we intend to extend the portfolio's weighted average
maturity should attractive yield opportunities present themselves. The Treasury
Series faces greater challenges. As the need for permanent financing of
government debt has decreased, the U.S. Treasury cut back significantly on
longer-term issuance, now offering temporary financing when needs arise. The
issuance of large cash management bills temporarily distorts the technical
condition, or supply, of the Treasury bill market. We intend to actively manage
the Treasury Series to take advantage of these changing conditions. In the
Tax-Free Series, we intend to continue to increase the portfolio's position in
very liquid securities to offset possible cash-flow reversals that may occur as
tax time approaches. We also want to be in a position to buy cheap commercial
paper when it becomes available. Thus, we intend to continue to actively adjust
weighted average maturity to offset Fed action and position for seasonal
phenomena. With credit spreads in this sector at historically tight levels, we
will continue to focus on the highest quality investments while still seeking
competitive yields.
4
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Letter to Shareholders (concluded)
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In fact, in each of our Series, we will continue to concentrate the portfolios
in very high quality credits and to maintain our conservative investment
strategies and standards for the foreseeable future.
We continue to believe that the conservative approach we apply to investing
on behalf of the Fund's Series will provide comfort, as well as competitive
yields, to our shareholders.
As always, we appreciate your continued support.
Sincerely,
/s/ Darlene Rasel /s/ Susan Fare
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Darlene Rasel Susan Fare
Portfolio Manager of the Portfolio Manager of the
BT ALEX. Brown Cash BT ALEX. Brown Cash
Reserve Fund Prime Reserve Fund
and Treasury Series Tax-Free Series
5
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BT ALEX. BROWN CASH RESERVE FUND, INC.
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Statement of Net Assets March 31, 1999
Rating (d)
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PRIME SERIES S&P Moody's (000) Value
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Commercial Paper - 88.4%
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Automotive Finance - 8.4%
Ford Motor Credit Corp.
4.80% 4/9/99 A-1 P-1 $10,000 $ 9,989,333
4.84% 4/15/99 A-1 P-1 40,000 39,924,711
4.85% 4/23/99 A-1 P-1 20,000 19,940,722
4.79% 5/14/99 A-1 P-1 35,000 34,799,751
4.83% 7/15/99 A-1 P-1 6,500 6,408,431
PACCAR Financial Corp.
4.84% 4/1/99 A-1+ P-1 6,000 6,000,000
4.90% 4/16/99 A-1+ P-1 7,700 7,684,279
4.85% 4/26/99 A-1+ P-1 8,000 7,973,056
4.79% 5/11/99 A-1+ P-1 5,000 4,973,389
4.79% 5/12/99 A-1+ P-1 12,000 11,934,537
4.83% 6/1/99 A-1+ P-1 3,100 3,074,629
4.83% 6/2/99 A-1+ P-1 3,400 3,371,718
4.81% 6/22/99 A-1+ P-1 8,000 7,912,351
4.81% 6/24/99 A-1+ P-1 49,000 48,450,057
Toyota Motor Credit Corp.
5.00% 4/8/99 A-1+ P-1 10,000 9,990,278
4.78% 4/9/99 A-1+ P-1 20,000 19,978,756
4.80% 5/25/99 A-1+ P-1 45,000 44,676,000
4.84% 5/25/99 A-1+ P-1 23,218 23,049,437
4.81% 6/25/99 A-1+ P-1 25,000 24,716,076
4.81% 6/28/99 A-1+ P-1 20,000 19,764,844
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354,612,355
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Banks - 4.5%
Bank One Corp.
4.83% 9/17/99 A-1 P-1 30,000 29,319,775
Suntrust Bank
4.84% 5/26/99 A-1 P-1 15,000 14,889,083
Wells Fargo Bank
4.83% 4/9/99 A-1 P-1 25,000 24,973,167
4.81% 4/30/99 A-1 P-1 25,000 24,903,132
4.81% 5/28/99 A-1 P-1 25,000 24,809,604
4.82% 6/30/99 A-1 P-1 25,000 24,698,750
4.83% 7/19/99 A-1 P-1 20,000 19,707,517
4.83% 7/21/99 A-1 P-1 25,000 24,627,688
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187,928,716
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Beverages - Soft Drinks - 3.6%
Coca-Cola Co.
4.75% 4/27/99 A-1+ P-1 4,500 4,484,563
4.75% 4/28/99 A-1+ P-1 40,000 39,857,500
4.82% 5/17/99 A-1+ P-1 14,875 14,783,387
6
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BT ALEX. BROWN CASH RESERVE FUND, INC.
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Rating (d)
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PRIME SERIES (continued) S&P Moody's (000) Value
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Commercial Paper (continued)
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Beverages - Soft Drinks (continued)
4.81% 5/28/99 A-1+ P-1 $50,000 $ 49,619,604
4.78% 5/21/99 A-1+ P-1 20,000 19,867,222
4.80% 6/23/99 A-1+ P-1 19,791 19,571,980
PepsiCo, Inc.
4.81% 8/19/99 A-1 P-1 5,000 4,996,830
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153,181,086
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Chemicals, General - 3.6%
E.I. duPont de Nemours and Co.
4.79% 4/12/99 A-1+ P-1 8,200 8,187,998
4.77% 4/29/99 A-1+ P-1 50,000 49,814,373
4.79% 4/29/99 A-1+ P-1 40,000 39,850,978
4.80% 5/13/99 A-1+ P-1 15,000 14,916,000
4.79% 5/14/99 A-1+ P-1 40,000 39,771,144
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152,540,493
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Chemicals, Specialty - 2.2%
Minnesota Mining & Manufacturing Co.
4.80% 4/19/99 A-1+ P-1 15,000 14,964,000
4.80% 5/21/99 A-1+ P-1 25,000 24,833,333
4.80% 7/19/99 A-1+ P-1 55,000 54,200,667
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93,998,000
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Computer & Office Equipment - 1.2%
Pitney Bowes Credit Corp.
4.84% 4/5/99 A-1+ P-1 25,000 24,986,556
4.90% 4/12/99 A-1+ P-1 24,300 24,263,618
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49,250,174
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Electrical and Electronics - 3.7%
Motorola Credit Corp.
4.81% 6/10/99 A-1+ P-1 30,000 29,719,417
4.81% 6/11/99 A-1+ P-1 26,000 25,753,354
Motorola Inc.
4.80% 4/16/99 A-1+ P-1 10,000 9,980,000
4.82% 5/27/99 A-1+ P-1 35,000 34,737,578
4.83% 5/27/99 A-1+ P-1 22,130 21,963,730
4.82% 6/4/99 A-1+ P-1 35,000 34,700,089
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156,854,168
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Entertainment - 1.5%
Walt Disney Co.
4.85% 4/15/99 A-1 P-1 25,000 24,952,847
4.82% 9/24/99 A-1 P-1 40,000 39,057,422
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64,010,269
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7
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BT ALEX. BROWN CASH RESERVE FUND, INC.
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Statement of Net Assets March 31, 1999
Rating (d)
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PRIME SERIES (continued) S&P Moody's (000) Value
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Commercial Paper (continued)
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Finance, Consumer - 5.8%
American General Finance Corp.
4.83% 6/10/99 A-1 P-1 $25,000 $ 24,765,208
4.84% 6/11/99 A-1 P-1 25,000 24,761,361
4.83% 7/26/99 A-1 P-1 35,000 34,455,283
USAA Capital Corp.
4.78% 4/7/99 A-1+ P-1 18,810 18,795,015
4.80% 4/14/99 A-1+ P-1 25,000 24,956,667
4.85% 4/15/99 A-1+ P-1 10,000 9,981,139
4.82% 4/16/99 A-1+ P-1 27,000 26,945,775
4.80% 4/30/99 A-1+ P-1 10,000 9,961,333
4.80% 5/13/99 A-1+ P-1 15,000 14,916,000
4.82% 5/13/99 A-1+ P-1 15,000 14,915,650
4.76% 5/28/99 A-1+ P-1 6,700 6,649,504
4.83% 6/4/99 A-1+ P-1 12,242 12,136,882
4.80% 6/25/99 A-1+ P-1 20,000 19,773,333
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243,013,150
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Finance, Diversified - 6.6%
Associates Corp.of North America
4.83% 4/12/99 A-1+ P-1 8,000 7,988,193
4.85% 4/30/99 A-1+ P-1 15,000 14,941,396
4.78% 5/14/99 A-1+ P-1 25,000 24,857,324
4.82% 5/17/99 A-1+ P-1 50,000 49,692,056
Associates First Capital Corp.
4.83% 5/24/99 A-1+ P-1 22,000 21,843,562
General Electric Capital Corp.
5.02% 4/23/99 A-1+ P-1 15,000 14,953,983
4.82% 5/5/99 A-1+ P-1 12,000 11,945,373
4.82% 6/3/99 A-1+ P-1 35,000 34,704,775
4.83% 6/4/99 A-1+ P-1 20,000 19,828,267
4.77% 6/18/99 A-1+ P-1 20,000 19,793,300
4.88% 7/6/99 A-1+ P-1 13,000 12,830,827
4.83% 7/28/99 A-1+ P-1 20,000 19,683,367
4.83% 8/16/99 A-1+ P-1 15,000 14,724,288
General Electric Co.
4.85% 6/3/99 A-1+ P-1 10,000 9,915,125
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277,701,836
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Finance, Leasing - 2.6%
International Lease Finance Corp.
4.81% 4/9/99 A-1+ P-1 25,000 24,973,278
4.83% 4/9/99 A-1+ P-1 20,000 19,978,533
8
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BT ALEX. BROWN CASH RESERVE FUND, INC.
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Rating (d)
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PRIME SERIES (continued) S&P Moody's (000) Value
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Commercial Paper (continued)
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Finance, Leasing (continued)
4.83% 4/13/99 A-1+ P-1 $22,000 $ 21,964,580
4.81% 5/5/99 A-1+ P-1 25,000 24,886,431
4.83% 6/3/99 A-1+ P-1 8,100 8,031,535
4.73% 7/20/99 A-1+ P-1 6,000 5,913,283
4.84% 9/16/99 A-1+ P-1 4,450 4,349,489
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110,097,129
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Food - 0.6%
Campbell Soup Co.
4.80% 6/14/99 A-1+ P-1 23,790 23,555,272
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Household Products - 6.8%
Johnson & Johnson
4.85% 4/9/99 A-1+ P-1 30,000 29,967,667
4.75% 5/10/99 A-1+ P-1 50,000 49,742,708
4.75% 6/2/99 A-1+ P-1 28,200 27,969,308
4.78% 7/20/99 A-1+ P-1 6,900 6,799,222
4.78% 7/21/99 A-1+ P-1 22,500 22,168,388
Procter & Gamble Co.
4.75% 5/13/99 A-1+ P-1 34,000 33,811,583
4.78% 5/13/99 A-1+ P-1 50,000 49,721,167
4.80% 5/27/99 A-1+ P-1 40,000 39,701,333
4.82% 5/27/99 A-1+ P-1 5,000 4,962,511
4.82% 6/18/99 A-1+ P-1 20,000 19,791,133
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284,635,020
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Insurance, Property and Casualty - 1.2%
A.I. Credit Corp.
4.80% 4/8/99 A-1+ P-1 50,000 49,953,333
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Integrated Oil - 3.5%
Shell Oil Co.
4.78% 5/13/99 A-1+ P-1 50,000 49,721,167
4.79% 5/14/99 A-1+ P-1 50,000 49,713,931
4.82% 5/14/99 A-1+ P-1 50,000 49,712,139
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149,147,237
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Oil Transportation - 0.9%
Colonial Pipeline Co.
4.85% 4/23/99 A-1+ P-1 2,000 1,994,072
4.84% 5/10/99 A-1+ P-1 15,200 15,120,301
4.83% 6/21/99 A-1+ P-1 5,000 4,945,663
4.80% 7/9/99 A-1+ P-1 3,500 3,453,800
4.83% 7/28/99 A-1+ P-1 12,000 11,810,020
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37,323,856
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9
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
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Statement of Net Assets March 31, 1999
Rating (d)
---------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
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Commercial Paper (continued)
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Pharmaceuticals - 7.9%
Abbott Laboratories
4.82% 4/16/99 A-1+ P-1 $25,550 $ 25,498,687
4.88% 4/26/99 A-1+ P-1 28,500 28,403,417
Pfizer Inc.
4.82% 4/13/99 A-1+ P-1 60,000 59,903,600
4.85% 4/16/99 A-1+ P-1 50,000 49,898,958
4.82% 4/30/99 A-1+ P-1 40,000 39,844,689
Schering - Plough Corp.
4.75% 4/16/99 A-1+ P-1 22,399 22,354,669
4.85% 4/20/99 A-1+ P-1 4,800 4,787,713
4.82% 5/14/99 A-1+ P-1 22,000 21,873,341
4.83% 5/14/99 A-1+ P-1 23,000 22,867,309
4.82% 5/28/99 A-1+ P-1 18,000 17,862,630
Warner - Lambert Co.
4.79% 5/17/99 A-1+ P-1 30,000 29,816,383
4.82% 5/18/99 A-1+ P-1 11,150 11,079,836
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334,191,232
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Publishing - 0.4%
Gannett Co.
4.90% 4/23/99 A-1+ P-1 14,600 14,556,281
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Retail - Food Chains - 1.2%
McDonald's Corp.
4.95% 4/1/99 A-1+ P-1 50,000 50,000,000
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Structured Finance - 11.2%
CIESCO, L.P.
4.85% 4/7/99 A-1+ P-1 15,000 14,987,875
4.80% 4/9/99 A-1+ P-1 45,000 44,952,000
4.86% 4/13/99 A-1+ P-1 30,500 30,450,590
4.85% 5/7/99 A-1+ P-1 15,000 14,927,250
4.78% 5/11/99 A-1+ P-1 20,000 19,893,778
4.85% 5/14/99 A-1+ P-1 17,945 17,841,044
4.83% 6/8/99 A-1+ P-1 15,000 14,863,150
Corporate Receivables Corp.
4.83% 4/7/99 A-1+ P-1 40,000 39,967,800
4.83% 4/14/99 A-1+ P-1 10,000 9,982,558
4.82% 4/23/99 A-1+ P-1 15,000 14,955,817
4.83% 5/21/99 A-1+ P-1 30,000 29,798,750
4.84% 5/21/99 A-1+ P-1 35,000 34,764,722
4.87% 6/4/99 A-1+ P-1 28,000 27,757,582
10
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BT ALEX. BROWN CASH RESERVE FUND, INC.
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Rating (d)
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PRIME SERIES (continued) S&P Moody's (000) Value
COMMERCIAL PAPER (continued)
Structured Finance (continued)
Corporate Asset Funding Co., Inc.
4.81% 4/22/99 A-1+ P-1 $20,000 $ 19,943,883
4.88% 5/6/99 A-1+ P-1 40,000 39,810,222
4.87% 5/11/99 A-1+ P-1 12,000 11,935,067
4.84% 5/12/99 A-1+ P-1 45,000 44,751,950
4.86% 5/25/99 A-1+ P-1 25,000 24,817,750
4.84% 6/3/99 A-1+ P-1 15,000 14,872,950
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471,274,738
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Telephone - 11.0%
Ameritech Capital Funding Corp.
4.85% 4/22/99 A-1+ P-1 52,755 52,605,747
AT&T Corp.
4.84% 4/14/99 A-1+ P-1 20,000 19,965,044
4.83% 5/20/99 A-1+ P-1 30,000 29,802,775
4.81% 6/8/99 A-1+ P-1 40,000 39,636,578
Bell Atlantic Network Funding Corp.
4.76% 4/5/99 A-1+ P-1 20,000 19,989,422
4.80% 4/6/99 A-1+ P-1 17,000 16,988,667
Bell South Capital Funding Corp.
4.78% 4/13/99 A-1+ P-1 8,000 7,987,253
4.80% 4/14/99 A-1+ P-1 50,000 49,913,333
4.80% 4/23/99 A-1+ P-1 29,000 28,914,933
4.84% 4/23/99 A-1+ P-1 30,000 29,911,267
Bell South Telecommunications, Inc.
4.80% 4/9/99 A-1+ P-1 10,000 9,989,333
4.85% 4/14/99 A-1+ P-1 20,000 19,964,972
SBC Communications Inc.
5.00% 4/1/99 A-1+ P-1 75,000 75,000,000
4.81% 5/6/99 A-1+ P-1 40,000 39,812,944
4.81% 5/7/99 A-1+ P-1 25,000 24,879,750
-------------
465,362,018
-------------
Total Commercial Paper
(Cost $3,723,186,363) 3,723,186,363
-------------
FLOATING RATE - NOTES - 1.5%
Associates Corp. of North America
4.89% 3/20/00 A-1+ P-1 40,000 39,973,208
Federal Home Loan Mortgage Corp.
4.77% 11/9/99 A-1+ P-1 25,000 24,989,569
------------
Total Floating Rate - Notes
(Cost $64,962,777) 64,962,777
------------
11
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BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1999
Rating (d)
---------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
MEDIUM-TERM NOTE - 0.1%
Pitney Bowes, Inc.
6.54% 7/15/99 A-1+ P-1 $ 5,000 $ 5,023,414
------------
Total Medium-Term Note
(Cost $5,023,414) 5,023,414
------------
FEDERAL HOME LOAN BANK - 0.2%
FHLB
5.53% 7/27/99 A-1+ P-1 10,425 10,423,310
------------
Total Federal Home Loan Bank
(Cost $10,423,310) 10,423,310
------------
FEDERAL HOME LOAN MORTGAGE- 0.4%
FHLM
4.70% 4/30/99 AAA -- 15,000 14,943,209
------------
Total Federal Home Loan
(Cost $14,943,209) 14,943,209
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 0.5%
FNMA
4.92% 6/18/99 -- P-1 20,000 19,786,800
------------
Total Federal National Mortgage Association
(Cost $19,786,800) 19,786,800
------------
CERTIFICATES OF DEPOSIT - 7.0%
First Chicago NBD Corporation
4.83% 4/20/99 A-1+ P-1 10,000 10,000,000
4.85% 5/24/99 A-1+ P-1 50,000 50,000,000
4.90% 6/7/99 A-1+ P-1 40,000 40,000,000
4.88% 6/30/99 A-1+ P-1 25,000 25,000,000
NationsBank Corporation
5.02% 5/3/99 A-1+ P-1 25,000 25,000,000
5.00% 5/10/99 A-1+ P-1 35,000 35,000,000
4.92% 7/6/99 A-1+ P-1 10,000 10,000,000
Wachovia Bank
4.86% 4/22/99 A-1+ P-1 50,000 50,000,289
4.85% 5/20/99 A-1+ P-1 50,000 50,000,000
------------
Certificates of Deposit
(Cost $295,000,289) 295,000,289
------------
12
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BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating (d)
----------- Par
PRIME SERIES (concluded) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 2.0%b
Goldman Sachs & Co.
4.90% 4/1/99e $ 85,721 $85,721,970
------------
TOTAL REPURCHASE AGREEMENT
(Cost $85,721,970) 85,721,970
------------
TOTAL INVESTMENTS--100.1%
(Cost $4,219,048,132)c $4,219,048,132
LIABILITIES IN EXCESS OF OTHER ASSETS, NET--(0.1)% (5,281,780)
--------------
NET ASSETS--100.0% $4,213,766,352
--------------
Net Asset Value, Offering and Redemption Price Per:
Prime Share
($3,727,990,170 / 3,727,906,079 shares outstanding) $1.00
=====
Flag Investors Class A Share
($13,028,272 / 13,027,769 shares outstanding) $1.00
=====
Flag Investors Class B Share
($2,355,863 / 2,355,780 shares outstanding) $1.00
=====
Institutional Prime Share
($388,447,492 / 388,440,636 shares outstanding) $1.00
=====
Quality Cash Reserve Prime Share
($81,944,555 / 81,938,027 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) Collateral on tri party repurchase agreements held by the agent of the Fund
upon entering into the repurchase agreement. The collateral is marked to
market daily to insure market value as being at least 102 percent of the
resale price of the repurchase agreement at time of purchase.
(c) Aggregate cost for financial reporting and federal tax purposes.
(d) The credit ratings are not covered by the report of independent
accountants.
(e) Dated 3/31/99 principal and interest in the amount of $85,733,638, due
04/01/99 (Collateralized by U.S. Treasury Note, par value of $48,920,000,
coupon rate of 6.375, due 03/31/01, value of $50,185,071; U.S. Treasury
Bond, par value of $1,789,000, coupon rate of 10.75%, due 08/15/05, value
of $2,326,083; U.S. Treasury Bill, par value of $34,930,000, coupon rate of
4.51%, due 04/01/99, value of $34,925,564).
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.
See Notes to Financial Statements
13
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1999
Maturity Par
TREASURY SERIES Date (000) Value
- --------------------------------------------------------------------------------
U.S. TREASURY BILLS(a) - 71.5%
4.370% 4/1/99 $ 250 $ 250,000
4.400% 14/1/99 14,180 14,180,000
4.425% 4/1/99 18,815 18,815,000
4.305% 4/15/99 2,360 2,356,049
4.820% 4/15/99 560 558,950
4.850% 4/15/99 32,945 32,882,862
4.260% 4/22/99 22,310 22,254,560
4.470% 4/22/99 5,130 5,116,624
4.485% 4/22/99 75,000 74,803,781
4.730% 4/22/99 39,730 39,620,378
4.745% 4/22/99 45,000 44,875,444
4.800% 4/22/99 11,590 11,557,548
4.405% 5/13/99 20,000 19,897,217
4.410% 5/13/99 79,880 79,469,017
4.415% 5/20/99 30,000 29,819,721
4.400% 5/27/99 7,715 7,662,195
4.420% 5/27/99 16,680 16,565,316
4.430% 5/27/99 16,550 16,435,952
4.450% 5/27/99 32,385 32,160,824
4.470% 5/27/99 2,400 2,383,312
4.485% 5/27/99 38,000 37,734,887
4.490% 5/27/99 3,615 3,589,751
4.530% 5/27/99 25,000 24,823,833
4.390% 6/10/99 50,000 49,573,194
4.470% 6/10/99 41,000 40,643,642
4.505% 6/10/99 42,685 42,311,091
4.380% 6/24/99 1,155 1,143,196
-------------
Total U.S. Treasury Bills $ 671,484,344
-------------
14
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Maturity Par
TREASURY SERIES (concluded) Date (000) Value
- --------------------------------------------------------------------------------
U.S. TREASURY NOTES - 31.4%
6.375% 4/30/99 $ 35,000 $ 35,047,578
6.500% 4/30/99 171,414 171,677,367
6.000% 6/30/99 30,000 30,102,434
6.750% 6/30/99 23,000 23,112,381
6.375% 7/15/99 15,000 15,067,252
6.875% 8/31/99 20,210 20,386,466
------------
Total U.S. Treasury Notes 295,393,477
------------
TOTAL U.S. TREASURY SECURITIES 966,877,821
------------
TOTAL INVESTMENTS--102.9%
(Cost $933,994,942) $ 966,877,821b
LIABILITIES IN EXCESS OF ASSETS--(2.9)% (27,615,002)
-------------
TOTAL NET ASSETS--100.0% $ 939,262,819
=============
Net Asset Value, Offering and Redemption Price Per:
Treasury Share
($816,700,318 / 816,622,190 shares outstanding) $1.00
=====
Institutional Treasury Share
($122,561,713 / 122,561,713 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
15
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1999
Rating*
------------ Par
TAX-FREE SERIES S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Alabama - 1.4%
Alabama Housing Finance Authority,
Multifamily Housing, Refunding RB
(Heatherbrooke Project), (Guaranteed
by FNMA), Variable Rate Weekly
Demand Note, 3.00%, 6/15/26(a) A-1+ -- $9,900 $ 9,900,000
Alabama Housing Finance Authority,
Multifamily Housing, Refunding RB
(Rime Village Hoover Project),
(Guaranteed by FNMA), Variable Rate
Weekly Demand Note, 3.00%, 6/15/26(a) A-1+ -- 5,800 5,800,000
-------------
15,700,000
-------------
Arizona - 0.1%
Phoenix, Arizona, G.O., Series A
3.75%, 7/1/99 AA+ Aa1 1,200 1,202,054
-------------
Arkansas - 0.2%
Arkansas State Development Finance
Authority Health Care Facilities,
(Sisters of Mercy Health), Series B,
Variable Rate Weekly Demand Note,
3.00%, 6/1/12(a) AA+ VMIG-1 1,800 1,800,000
-------------
Colorado - 3.5%
Colorado Health Facilities Authority
Revenue, (Catholic Health
Initiatives), Series B,
Variable Rate Weekly
Demand Note, 3.00%, 12/1/25(a) A-1+ VMIG-1 11,800 11,800,000
Colorado Housing Finance Authority,
Multifamily Housing, (Huntington
Project), (Guaranteed by FNMA),
Variable Rate Weekly Demand Note,
3.00%, 10/15/16(a) A-1+ -- 2,400 2,400,000
Colorado Housing Finance Authority,
Multifamily Housing, (Loretto
Project), (Guaranteed by FNMA),
Variable Rate Weekly Demand Note,
3.00%, 10/15/16(a) A-1+ -- 9,100 9,100,000
16
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating* Par
- --------------------------------------------------------------------------------
TAX-FREE SERIES (continued) S&P Moody's (000) Value
Colorado (continued)
Colorado Housing Finance Authority,
Multifamily Housing, (Silver Reef
Project), (Guaranteed by FNMA),
Variable Rate Weekly Demand Note,
3.00%, 10/15/16(a) A-1+ -- $ 9,490 $ 9,490,000
Colorado State, General Fund Revenue,
TRAN, Series A, 4.25%, 6/25/99 SP-1+ -- 4,000 4,006,694
Platte River Power Authority,
Colorado, Series D, (MBIA Insured),
5.00%, 6/1/99 AAA Aaa 2,320 2,328,032
-------------
39,124,726
-------------
Delaware - 0.4%
Delaware State, G.O., Series A
4.60%, 3/1/00 AA+ Aa1 1,000 1,013,400
Delaware State, G.O., Series B
5.00%, 5/1/99 AA+ Aa1 1,500 1,501,592
Delaware State, G.O., Series B
6.85%, 5/1/99 AA+ Aa1 1,750 1,754,289
-------------
4,269,281
-------------
Florida - 1.3%
Florida State, Department of
Environmental Preservation
2000-B, (FSA Insured),
4.50%, 7/1/99 AAA Aaa 1,000 1,002,425
Sunshine State, Local Government,
Financing Commission, Adj Rate
Revenue Bonds, (AMBAC Insured),
Tax Exempt Commercial Paper Mode,
3.05%, 7/28/99 -- VMIG-1 5,000 5,000,000
Sunshine State, Local Government,
Financing Commission, Adj Rate
Revenue Bonds, (AMBAC Insured),
Tax Exempt Commercial Paper Mode,
3.10%, 8/6/99 -- VMIG-1 7,000 7,000,000
Tampa Health Facilities Authority RB,
(Lifelink Foundation Inc. Project),
(LOC: SunTrust Bank), Variable Rate
Weekly Demand Note, 3.10%, 8/1/22(a) -- Aa3 1,500 1,500,000
-------------
14,502,425
-------------
17
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1999
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Georgia - 5.9%
Cobb County, Georgia, Housing
Authority, (Post Mill Project),
(Guaranteed by FNMA), Variable
Rate Weekly Demand Note,
3.00%, 6/1/25(a) A-1+ -- $ 9,380 $ 9,380,000
Columbus County, Georgia, Housing
Authority Revenue, (Columbus State
University Foundation, Inc.),
(LOC: SunTrust Bank), Variable
Rate Weekly Demand Note,
3.10%, 11/7/17(a) -- Aa3 2,300 2,300,000
De Kalb County, Georgia, Housing
Authority, Multifamily Housing,
(Camden Brook Project), (Guaranteed
by FNMA), Variable Rate Weekly
Demand Note, 3.05%, 6/15/25(a) A-1+ -- 5,400 5,400,000
De Kalb County, Georgia, Housing
Authority, Multifamily Housing,
(Clairmont Crest Project),
(Guaranteed by FNMA), Variable
Rate Weekly Demand Note,
3.05%, 6/15/25(a) A-1+ -- 1,400 1,400,000
De Kalb County, Georgia, Housing
Authority, Multifamily Housing,
(Post Ashford Project),
(Guaranteed by FNMA), Variable
Rate Weekly Demand Note,
3.00%, 6/1/25(a) A-1+ -- 7,895 7,895,000
Fulton County, Georgia, Development
Authority Revenue (Georgia Tech
Athletic Association Project),
(LOC: SunTrust Bank), Variable
Rate Weekly Demand Note,
3.10%, 7/1/14(a) -- Aa3 8,050 8,050,000
Georgia State, G.O., Series A,
7.25%, 9/1/99 AAA Aaa 5,660 5,743,969
Macon-Bibb County, Georgia, Hospital
Authority Revenue, (Medical Center
of Central Georgia), (LOC: SunTrust
Bank), Variable Rate Weekly
Demand Note, 3.10%, 8/1/18 -- Aa3 2,900 2,900,000
18
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BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating*
----------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Georgia (continued)
Macon-Bibb County, Georgia, Hospital
Authority Revenue, (Medical Center
of Central Georgia), (LOC: SunTrust
Bank), Variable Rate Weekly Demand
Note, 3.10%, 12/1/18(a) A-1+ Aa3 $ 5,000 $ 5,000,000
Municipal Electric Authority of
Georgia, Project One Bonds, Tax
Exempt Commercial Paper Mode,
(LOC: Morgan Guaranty Trust),
3.10%, 7/9/99 A-1+ VMIG-1 3,000 3,000,000
Roswell Housing Authority,
Multifamily Housing, (Post Canyon
Project), (Guaranteed by FNMA),
Variable Rate Weekly Demand Note,
3.00%, 6/1/25(a) A-1+ -- 5,500 5,500,000
Smyrna Housing Authority, Multifamily
Housing, (F&M Villages Project),
(Guaranteed by FNMA), Variable Rate
Weekly Demand Note, 3.00%, 6/6/25(a) A-1+ -- 9,700 9,700,000
-------------
66,268,969
-------------
Idaho - 0.5%
Idaho State, TANS 4.50%, 6/30/99 SP-1+ MIG-1 5,500 5,515,373
-------------
Illinois - 9.6%
Chicago, Illinois, G.O. Adjustable
Tender Notes, (LOC: Morgan
Guaranty Trust), 2.85%, 10/28/99 A-1+ VMIG-1 4,500 4,500,000
Chicago, Illinois, Metro. Water
Reclamation District, G.O.,
4.15%, 12/1/99 AA Aa2 1,000 1,007,329
Chicago, Illinois, Metro. Water
Reclamation District, G.O.,
4.70%, 12/1/99 AA Aa2 1,500 1,515,745
Illinois Development Finance
Authority, P.C.R., (Commonwealth
Edison Company Project), Series C,
(LOC: ABN AMRO Bank N.V.), Variable
Rate Weekly Demand Note,
3.05%, 3/1/09(a) A-1+ P-1 7,700 7,700,000
19
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1999
Rating*
----------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Illinois (continued)
Illinois Development Finance
Authority, P.C.R., (Illinois Power
Company Project), Series A,
(LOC: ABN Amro Bank N.V.),
Variable Rate Weekly Demand Note,
3.00%, 11/1/28(a) A-1+ VMIG-1 $ 2,500 $ 2,500,000
Illinois Development Finance
Authority, P.C.R., (Illinois Power
Company Project), Series B,
(LOC: ABN Amro Bank N.V.),
Variable Rate Weekly Demand
Note, 3.05%, 11/1/28(a) A-1+ VMIG-1 2,700 2,700,000
Illinois Development Finance
Authority, (Provena Health),
Series B, (MBIA Insured),
Variable Rate Daily Demand
Note, 3.20%, 5/1/28(a) A-1+ VMIG-1 4,400 4,400,000
Illinois Development Finance
Authority, (Provena Health),
Series C, (MBIA Insured),
Variable Rate Weekly
Demand Note, 3.00%, 5/1/28(a) A-1+ VMIG-1 3,000 3,000,000
Illinois Development Finance
Authority Revenue, (Chicago Symphony
Orchestra), (LOC: Northern Trust),
Variable Rate Weekly Demand Note,
2.95%, 12/1/28(a) A-1+ VMIG-1 11,300 11,300,000
Illinois Development Finance
Authority Revenue, (Fenwick High
School Project), (LOC: Northern
Trust), Variable Rate Weekly
Demand Note, 2.95%, 3/1/32(a) A-1+ -- 8,200 8,200,000
Illinois Educational Facilities
Authority, (Field Museum of Natural
History), (LOC: Northern Trust),
2.90%, 11/1/25, Mandatory
Put - 11/23/99 @ $100 -- VMIG-1 10,000 10,000,000
Illinois Health Facilities Authority,
(Evanston Hospital Corp. Project),
3.70%, 8/15/30 Mandatory
Put - 7/15/99 @ $100 A-1+ VMIG-1 5,000 5,000,000
Illinois Health Facilities Authority,
(Gottlieb Health Resources, Inc.),
(LOC: Harris Trust and Savings Bank),
Variable Rate Weekly Demand Note,
2.95%, 11/15/24 -- VMIG-1 2,500 2,500,000
20
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Illinois (continued)
Illinois Health Facilities Authority,
(Gottlieb Health Resources, Inc.),
(LOC: Harris Trust and Savings Bank),
Variable Rate Weekly Demand Note,
2.95%, 11/15/25(a) -- VMIG-1 $6,300 $ 6,300,000
Illinois Health Facilities Authority,
(Northwestern Memorial Hospital),
Variable Rate Daily Demand Note,
3.10%, 8/15/25(a) A-1+ VMIG-1 10,900 10,900,000
Illinois Health Facilities Authority,
Revolving Fund, Pooled Financing
Program (University of Chicago
Project), 2.95%, 8/1/15 Mandatory
Put - 5/3/99 @ $100 A-1+ VMIG-1 10,000 10,000,000
Illinois Health Facilities Authority,
Series A, (Evanston Hospital Corp.
Project), 3.15%, 3/15/25 Mandatory
Put - 8/2/99 @ $100 A-1+ VMIG-1 10,000 10,000,000
Illinois State, G.O., (MBIA Insured)
5.38%, 5/1/99 AAA Aaa 2,500 2,503,485
Illinois State, Sales Tax Revenue,
Series U, 4.50%, 6/15/99 AAA Aa2 1,000 1,003,047
Illinois State, Sales Tax Revenue,
Series V, 5.63%, 6/15/99 AAA Aa2 1,000 1,005,294
Schaumburg, Illinois, Series A,
Variable Rate Weekly Demand Note,
3.00%, 12/1/13(a) A-1+ VMIG-1 1,200 1,200,000
-------------
107,234,900
-------------
Indiana - 2.8%
Indiana Health Facilities Authority,
(Charity Obligated Group),
Series F, Variable Rate Weekly
Demand Note, 2.90%, 11/1/26(a) A-1+ VMIG-1 1,700 1,700,000
Purdue University, Student Fee Bonds,
Series K, Variable Rate Weekly
Demand Note, 2.90%, 7/1/20(a) A-1+ VMIG-1 20,625 20,625,000
Purdue University, Student Fee Bonds,
Series L, Variable Rate Weekly
Demand Note, 2.90%, 7/1/20(a) A-1+ VMIG-1 9,000 9,000,000
-------------
31,325,000
-------------
21
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1999
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Iowa - 0.3%
Iowa Finance Authority, Hospital
Facilities Revenue, (Iowa Health
System), Series B, (AMBAC Insured),
Variable Rate Weekly Demand Note,
3.05%, 7/1/20 (a) A-1+ VMIG-1 $ 2,900 $ 2,900,000
-------------
Kansas - 0.1%
Johnson County, Kansas, Union School
District No. 229, G.O., Series A,
6.40%, 10/1/99 AA Aa1 1,195 1,214,906
-------------
Kentucky - 0.2%
Kentucky Asset/Liability Commission,
General Fund, TRAN, Series B,
4.00%, 6/25/99 SP-1+ MIG-1 2,500 2,503,811
-------------
Louisiana - 2.6%
East Baton Rouge Parish, Louisiana,
P.C.R., (Georgia Pacific Corp.),
(LOC: Wachovia Bank), Variable
Rate Weekly Demand Note,
3.00%, 10/1/99(a) -- P-1 3,800 3,800,000
Louisiana Offshore Terminal Authority,
Deepwater Port Revenue, First Stage
1991A (Loop Inc.), (LOC: Morgan
Guaranty Trust), Variable Rate
Weekly Demand Note, 2.95%,
9/1/17(a) A-1+ VMIG-1 17,610 17,610,000
Louisiana Offshore Terminal Authority,
Deepwater Port Revenue, First
Stage 1991A (Loop Inc.), (LOC:
UBS AG), Variable Rate Daily
Demand Note, 3.15%, 9/1/06(a) -- VMIG-1 7,600 7,600,000
-------------
29,010,000
-------------
22
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Maryland - 4.7%
Baltimore County, Maryland,
Metropolitan District 61st Issue,
G.O., 6.75%, 4/1/99 AAA Aaa $ 1,000 $ 1,000,000
Community Development Administration
Multifamily Development, (Avalon Lea
Apartments Project), (Guaranteed by
FNMA), Variable Rate Weekly Demand
Note, 2.90%, 6/15/26(a) -- VMIG-1 6,800 6,800,000
Community Development Administration
Multifamily Development, (Avalon
Ridge Apartments Project), (Guaranteed
by FNMA), Variable Rate Weekly
Demand Note, 2.90%, 6/15/26(a) -- VMIG-1 12,400 12,400,000
Frederick County, Maryland, BAN,
Variable Rate Weekly Demand Note,
3.05%, 10/1/07(a) A-1+ VMIG-1 2,800 2,800,000
Maryland State, G.O., 6.00%, 7/15/99 AAA Aaa 3,310 3,340,411
Maryland State, G.O., 6.70%, 7/15/99 AAA Aaa 1,000 1,008,670
Maryland State, G.O., 6.75%, 10/15/99
3,000 3,056,739 Maryland
State Health & Higher Educational
Facilities Authority, (Charity
Obligated Group), Series F,
Variable Rate Weekly Demand Note,
2.85%, 11/1/17(a) A-1+ VMIG-1 12,700 12,700,000
Montgomery County, Maryland, G.O.,
Series A, 4.88%, 5/1/99 AAA Aaa 4,060 4,063,815
Washington Suburban Sanitary District,
G.O., Variable Rate Weekly Demand
Note, 3.05%, 8/1/04(a) A-1+ VMIG-1 5,000 5,000,000
Washington Suburban Sanitary District,
Water Supply, G.O., 4.00%, 6/1/99 AA Aa1 1,200 1,200,579
-------------
53,370,214
-------------
23
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1999
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Massachusetts - 2.9%
Massachusetts Bay Transit Authority,
RAN, Series A, 3.50%, 2/25/00 SP-1+ MIG-1 $10,500 $ 10,533,007
Massachusetts State, G.O., Series A,
Variable Rate Weekly Demand Note,
2.85%, 9/1/16(a) A-1+ VMIG-1 18,100 18,100,000
Massachusetts State, G.O., Series B,
Variable Rate Weekly Demand Note,
2.85%, 9/1/16(a) A-1+ VMIG-1 4,000 4,000,000
-------------
32,633,007
-------------
Michigan - 6.1%
Detroit Michigan Water Supply System,
(FGIC Insured), Variable Rate Weekly
Demand Note, 3.00%, 7/1/13(a) A-1+ VMIG-1 2,000 2,000,000
Michigan State Building Authority,
Series 2, (LOC: Canadian Imperial
Bank), Tax Exempt Commercial
Paper, 3.15%, 8/5/99(a) A-1+ P-1 5,600 5,600,000
Michigan State Hospital Finance
Authority, (Charity Obligated Group),
Variable Rate Weekly Demand Note,
2.90%, 11/1/11(a) A-1+ VMIG-1 3,320 3,320,000
Michigan State Hospital Finance
Authority, (Charity Obligated Group),
Variable Rate Weekly Demand Note,
2.90%, 11/1/18 A-1+ VMIG-1 4,450 4,450,000
Michigan State, Strategic Fund,
(Consumer Power Project), P.C.R.,
(LOC: Canadian Imperial Bank),
Variable Rate Daily Demand Note,
3.10%, 6/15/10(a) A-1+ Aa3 3,400 3,400,000
Michigan State, Strategic Fund,
(Consumer Power Project), P.C.R.,
(LOC: Union Bank of Switzerland),
Variable Rate Daily Demand Note,
3.20%, 4/15/18(a) -- P-1 8,900 8,900,000
Michigan State University, General
Revenue, Series A-2, Variable Rate
Weekly Demand Note,
3.00%, 8/15/22(a) A-1+ VMIG-1 20,500 20,500,000
University of Michigan, Series B,
Tax Exempt Commercial Paper,
2.80%, 5/12/99 A-1+ P-1 2,100 2,100,000
24
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BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Michigan (continued)
University of Michigan, Series B,
Tax Exempt Commercial Paper,
3.00, 5/12/99 A-1+ P-1 $ 5,000 $ 5,000,000
University of Michigan, Series B,
Tax Exempt Commercial Paper,
3.00, 7/20/99 A-1+ P-1 6,000 6,000,000
University of Michigan, Series B,
Tax Exempt Commercial Paper,
3.00, 7/20/99 A-1+ P-1 2,750 2,750,000
University of Michigan, Series B,
Tax Exempt Commercial Paper,
3.00, 7/21/99 A-1+ P-1 5,000 5,000,000
-------------
69,020,000
-------------
Minnesota - 1.9%
Minnesota State, G.O. 5.00%, 8/1/99 AAA Aaa 1,000 1,006,522
Minnesota State, G.O. 6.60%, 8/1/99 AAA Aaa 1,000 1,011,368
University of Minnesota, Series A,
Variable Rate Weekly Demand Note,
3.00%, 1/1/34(a) A-1+ VMIG-1 19,000 19,000,000
-------------
21,017,890
-------------
Mississippi - 4.1%
Jackson County, Mississippi, Chevron
USA Inc. Project, (Guaranteed by
Chevron), Variable Rate Daily
Demand Note, 3.10%, 12/1/16(a) -- P-1 1,800 1,800,000
Jackson County, Mississippi, Chevron
USA Inc. Project, (Guaranteed by
Chevron), Variable Rate Daily
Demand Note, 3.10%, 6/1/23(a) -- P-1 7,700 7,700,000
Jackson County, Mississippi, Chevron
USA Inc. Project, (Guaranteed by
Chevron), Variable Rate Daily
Demand Note, 3.15%, 6/1/23(a) -- P-1 5,660 5,660,000
Perry County, Mississippi, Leaf
River Forest Project, (LOC: Wachovia
Bank), Variable Rate Daily Demand
Note, 3.15%, 3/1/02(a) -- P-1 30,850 30,850,000
-----------
46,010,000
-----------
25
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1999
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Missouri - 4.0%
Bi-State Development Agency, Missouri,
St. Clair County, (MBIA Insured),
Variable Rate Weekly Demand Note,
3.00%, 7/1/28(a) A-1+ -- $19,500 $ 19,500,000
Missouri State, G.O., Fourth State
Building, Series A, 5.00%, 6/1/99 AAA Aaa 1,150 1,152,406
Missouri State, Health & Educational
Facilities Authority, (Barnes
Hospital Project), (LOC: Morgan
Guaranty Trust), Variable Rate
Weekly Demand Note,
3.00%, 12/1/15(a) A-1+ VMIG-1 2,900 2,900,000
Missouri State, Health & Educational
Facilities Authority, (Sisters of
Mercy Health), Series D, Variable
Rate Weekly Demand Note,
3.00%, 6/1/14(a) A-1+ VMIG-1 400 400,000
Missouri State, Health & Educational
Facilities Authority, (Sisters of
Mercy Health), Series D, Variable
Rate Weekly Demand Note,
3.00%, 6/1/19(a) A-1+ VMIG-1 9,000 9,000,000
Missouri State, Health & Educational
Facilities Authority, (Washington
University Project), Series B,
Variable Rate Daily Demand Note,
3.20%, 9/1/30(a) A-1+ VMIG-1 6,400 6,400,000
Missouri State, Health & Educational
Facilities Authority, (Washington
University Project), Series C,
Variable Rate Daily Demand Note,
3.10%, 9/1/30(a) A-1+ VMIG-1 1,400 1,400,000
Missouri State, Health & Educational
Facilities Authority, (Washington
University Project), Variable Rate
Weekly Demand Note,
3.00%, 9/1/09(a) A-1+ VMIG-1 4,600 4,600,000
-------------
45,352,406
-------------
Montana - 0.7%
Forsyth, Montana, P.C.R., (Pacificorp
Project), (LOC: Rabobank Nederland),
Variable Rate Daily Demand Note,
3.30%, 1/1/18(a) A-1+ P-1 7,750 7,750,000
-------------
26
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Nevada - 1.4%
Las Vegas Valley Water District,
Nevada, (LOC: Westdeutsche
Landesbank), Tax Exempt Commercial
Paper, 2.80%, 5/11/99 A-1+ P-1 $ 4,000 $ 4,000,000
Las Vegas Valley Water District,
Nevada, (LOC: Westdeutsche
Landesbank), Tax Exempt Commercial
Paper, 2.80%, 5/12/99 A-1+ P-1 10,000 10,000,000
Nevada State, G.O., Series A,
5.25%, 5/15/99 AA Aa2 1,615 1,617,842
-------------
15,617,842
-------------
New Hampshire - 0.2%
New Hampshire State, Capital
Improvement, Series A,
4.00%, 10/1/99 AA+ Aa2 1,900 1,909,325
-------------
New Jersey - 2.5%
New Jersey State, G.O. 5.00%, 7/15/99 AA+ AA1 3,000 3,013,042
New Jersey State, G.O., Series E,
5.00%, 7/15/99 AA+ Aa1 2,965 2,982,772
New Jersey State, Series A, TRAN,
(Tax Exempt Commercial Paper Mode),
3.15%, 4/8/99 A-1+ P-1 3,000 3,000,000
New Jersey State, Series A, TRAN,
(Tax Exempt Commercial Paper Mode),
2.95%, 5/6/99 A-1+ P-1 2,000 2,000,000
New Jersey State, Series A, TRAN,
(Tax Exempt Commercial Paper Mode),
3.15%, 5/6/99 A-1+ P-1 2,000 2,000,000
New Jersey State, Series A, TRAN,
(Tax Exempt Commercial Paper Mode),
3.05%, 5/13/99 A-1+ P-1 5,000 5,000,000
New Jersey State, Series A, TRAN,
(Tax Exempt Commercial Paper Mode),
3.10%, 5/20/99 A-1+ P-1 3,000 3,000,000
New Jersey State, Series A, TRAN,
(Tax Exempt Commercial Paper Mode),
3.20%, 6/4/99 A-1+ P-1 2,000 2,000,000
New Jersey State, Transportation
Trust Fund, Series A, (Escrow in
U.S. Government Securities),
5.90%, 6/15/99 -- AAA 5,000 5,031,718
-------------
28,027,532
-------------
27
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1999
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
New Mexico - 0.4%
New Mexico State, TRAN, 4.25%, 6/30/99 SP-1+ MIG-1 $ 4,000 $ 4,006,188
-------------
New York - 6.9%
Long Island Power Authority,
New York, Electrical System
Revenue, Series 5, (LOC: ABN Amro
Bank N.V. 50%, Morgan Guaranty
50%), Variable Rate Daily Demand
Note, 3.15%, 5/1/33(a) A-1+ VMIG-1 5,700 5,700,000
Long Island Power Authority,
New York, Electric System Revenue,
Variable Rate Demand Bonds,
(Tax Exempt Commercial Paper Mode),
(LOC: Westdeutsche Landesbank 50%,
Bayerische Landesbank 50%),
2.80%, 4/7/99 A-1+ VMIG-1 3,000 3,000,000
Long Island Power Authority, New York,
Electric System Revenue, Variable
Rate Demand Bonds, (Tax Exempt
Commercial Paper Mode), (LOC:
Westdeutsche Landesbank 50%,
Bayerische Landesbank 50%),
2.90%, 4/20/99 A-1+ VMIG-1 2,500 2,500,000
Long Island Power Authority, New York,
Electric System Revenue, Variable
Rate Demand Bonds, (Tax Exempt
Commercial Paper Mode), (LOC:
Westdeutsche Landesbank 50%,
Bayerische Landesbank 50%),
3.05%, 4/26/99 A-1+ VMIG-1 6,000 6,000,000
Long Island Power Authority, New York,
Electric System Revenue, Variable
Rate Demand Bonds, (Tax Exempt
Commercial Paper Mode), (LOC:
Westdeutsche Landesbank 50%,
Bayerische Landesbank 50%),
2.80%, 5/14/99 A-1+ VMIG-1 2,000 2,000,000
Long Island Power Authority,
New York, Series 2, (LOC:
Westdeutsche Landesbank 50%,
Bayerische Landesbank 50%), Variable
Weekly Demand Note, 2.80%, 5/1/33(a) A-1+ VMIG-1 3,500 3,500,000
28
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
New York (continued)
Metropolitan Transportation
Authority, New York, Transit
Facilities BAN, Tax Exempt
Commercial Paper, 3.10%, 4/13/99 A-1+ P-1 $ 5,000 $ 5,000,000
Municipal Assistance Corp. for New
York City, New York, Sub Series
K-2, (LOC: Westdeutsche Landesbank),
Variable Rate Weekly Demand Note,
3.15%, 7/1/08(a) A-1+ VMIG-1 5,800 5,800,000
New York, New York, G.O., Series
B, (FGIC Insured), Variable Rate
Daily Demand Note, 3.40%, 10/1/20(a) A-1+ VMIG-1 1,400 1,400,000
New York, New York, G.O., Series B,
(FGIC Insured), Variable Rate Daily
DA-1+d Note, 3.40%, 10/1/22(a) A-1+ VMIG-1 1,200 1,200,000
New York City, New York, Municipal
Water Finance Authority, Water and
Sewer System Revenue, Series A,
(FGIC Insured), Variable Rate Daily
Demand Note, 3.35%, 6/15/25(a) A-1+ VMIG-1 2,500 2,500,000
New York City, New York, Municipal
Water Finance Authority, Water and
Sewer System Revenue, Series G,
(FGIC Insured), Variable Rate Daily
Demand Note, 3.10%, 6/15/24(a) A-1+ VMIG-1 19,850 19,850,000
New York City, New York, Transitional
Finance Authority Revenue, SubSeries
B-1, 2.90%, 11/1/27, Mandatory Put -
11/1/99 @ $100 A-1+ VMIG-1 5,000 5,000,000
New York State, Energy Research and
Development Authority, P.C.R.,
Niagara Mohawk Power, (LOC: Toronto
Dominion Bank), Variable Rate Daily
Demand Note, 3.30%, 7/1/15(a) A-1+ -- 5,700 5,700,000
Westchester County, New York, G.O.,
Series B, 4.00%, 11/15/99 AAA Aaa 8,500 8,554,169
-------------
77,704,169
-------------
29
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1999
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
North Carolina - 2.0%
Charlotte-Mecklenberg Hospital
Authority, North Carolina, Health
Care System Revenue, Series C,
Variable Rate Weekly Demand Note,
3.05%, 1/15/26(a) A-1+ VMIG-1 $10,000 $ 10,000,000
Charlotte-Mecklenberg Hospital
Authority, North Carolina, Health
Care System Revenue, Series D,
Variable Rate Weekly Demand Note,
3.05%, 1/15/26(a) A-1+ VMIG-1 3,400 3,400,000
North Carolina Medical Care Commission
Hospital Revenue, (North Carolina
Baptist Hospital Project), Series B,
Variable Rate Weekly Demand Note,
3.05%, 6/1/22(a) A-1+ VMIG-1 9,000 9,000,000
-------------
22,400,000
-------------
Ohio - 1.9%
Clermont County, Ohio, Hospital
Facilities Revenue, Series B,
(Catholic Health Partners),
Variable Rate Weekly
Demand Note, 3.00%, 9/1/21(a) A-1+ VMIG-1 16,720 16,720,000
Ohio State, G.O., Highway Capital
Improvements, Series C,
4.00%, 5/1/99 AAA Aa1 1,100 1,100,321
Ohio State, G.O., Highway Capital
Improvements, Series S,
4.40%, 5/15/99 AAA Aa1 1,835 1,836,331
Ohio State, G.O., Highway Capital
Improvements, Series U,
4.40%, 5/15/99 AAA Aa1 1,000 1,000,761
Ohio State, G.O., Highway Capital
Improvements, Series V,
4.70%, 5/15/99 AAA Aa1 1,350 1,351,706
-------------
22,009,119
-------------
Oregon - 1.4%
Umatilla County, Oregon, Hospital
Facilities Authority, (Catholic
Health Initiatives), Series B,
Variable Rate Weekly Demand Note,
3.00%, 12/1/24(a) A-1+ VMIG-1 15,400 15,400,000
-------------
30
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BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Pennsylvania - 0.5%
Pennsylvania State, G.O., Second
Series A, (MBIA Insured),
4.75%, 6/15/99 AAA Aaa $ 1,000 $ 1,002,191
Pennsylvania State, Higher Educational
Facility Authority, Carnegie Mellon
University, Series A, Variable Rate
Daily Demand Note, 3.05%, 11/1/25(a) A-1+ -- 550 550,000
Pennsylvania State, Higher Educational
Facility Authority, Carnegie Mellon
University, Series D, Variable Rate
Daily Demand Note, 3.05%, 11/1/30(a) A-1+ -- 900 900,000
Pottsville, Pennsylvania, Hospital
Authority, Series F, (Charity
Obligated Group), Variable Rate
Weekly Demand Note,
2.90%, 11/1/19(a) A-1+ VMIG-1 1,500 1,500,000
York County, Pennsylvania, Industrial
Development Authority, P.C.R.,
Philadelphia Electric Co., (LOC:
Toronto Dominion Bank), Variable
Rate Daily Demand Note,
3.05%, 8/1/16(a) A-1+ P-1 1,800 1,800,000
-------------
5,752,191
-------------
South Carolina - 1.0%
Rock Hill, South Carolina, Utility
System Revenue, Series B, (AMBAC
Insured), Variable Rate Weekly
Demand Note, 2.90%, 1/1/23(a) A-1+ VMIG-1 5,515 5,515,000
South Carolina State, G.O., Capital
Improvement, Series B,
5.75%, 8/1/99 AAA Aaa 1,500 1,513,752
South Carolina State, G.O., Series A,
4.50%, 8/1/99 AAA Aaa 2,970 2,979,473
South Carolina State, G.O., Series W,
6.00%, 5/1/99 AAA Aaa 1,125 1,127,071
-------------
11,135,296
-------------
31
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1999
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Tennessee - 3.3%
Memphis, Tennessee, G.O.,
5.00%, 10/1/99 AA Aa-1 $ 2,265 $ 2,286,816
Memphis, Tennessee, G.O., Series A,
Variable Rate Weekly Demand Note,
3.15%, 8/1/04(a) A-1+ VMIG-1 2,500 2,500,000
Memphis, Tennessee, G.O., Series A,
Variable Rate Weekly Demand Note,
3.15%, 8/1/07 A-1+ VMIG-1 2,800 2,800,000
Tennessee State, G.O., Variable Rate
Weekly Demand Note,
2.90%, 7/1/01(a) A-1+ VMIG-1 20,600 20,600,000
Tennessee State, G.O., Variable
Rate Weekly Demand Note,
2.90%, 7/2/01(a) A-1+ VMIG-1 9,000 9,000,000
Tennessee State, G.O., Variable
Rate Weekly Demand Note,
2.90%, 7/2/01(a) A-1+ VMIG-1 400 400,000
-------------
37,586,816
-------------
Texas - 15.1%
Austin, Texas, Combined Utility
System, Tax Exempt Commercial
Paper, Series A, (LOC: Morgan
Guaranty Trust), 2.70%, 4/7/99 A-1+ P-1 3,000 3,000,000
Austin, Texas, Combined Utility
System, Tax Exempt Commercial
Paper, Series A, (LOC: Morgan
Guaranty Trust), 2.80%, 5/7/99 A-1+ P-1 3,000 3,000,000
Austin, Texas, Combined Utility
System, Tax Exempt Commercial
Paper, Series A, (LOC: Morgan
Guaranty Trust), 2.85%, 5/7/99 A-1+ P-1 3,000 3,000,000
Austin, Texas, Combined Utility
System, Tax Exempt Commercial
Paper, Series A, (LOC: Morgan
Guaranty Trust), 2.85%, 5/10/99 A-1+ P-1 1,000 1,000,000
Austin, Texas, Combined Utility
System, Tax Exempt Commercial
Paper, Series A, (LOC: Morgan
Guaranty Trust), 2.95%, 5/11/99 A-1+ P-1 6,425 6,425,000
Austin, Texas, Combined Utility
System, Tax Exempt Commercial
Paper, Series A, (LOC: Morgan
Guaranty Trust), 3.10%, 7/26/99 A-1+ P-1 2,340 2,340,000
32
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Texas (continued)
Austin, Texas, Independent School
District, G.O., (PSF Guaranteed),
6.20%, 8/1/99 AAA Aaa $ 1,000 $ 1,010,934
City of Houston, Texas, G.O., Series B,
Tax Exempt Commercial Paper, 2.95%,
4/6/99 A-1+ P-1 7,700 7,700,000
City of Houston, Texas, G.O., Series B,
Tax Exempt Commercial Paper, 2.80%,
4/9/99 A-1+ P-1 3,000 3,000,000
City of Houston, Texas, G.O., Series B,
Tax Exempt Commercial Paper, 2.85%,
4/12/99 A-1+ P-1 3,000 3,000,000
City of Houston, Texas, G.O., Series B,
Tax Exempt Commercial Paper, 2.90%,
4/19/99 A-1+ P-1 3,000 3,000,000
City of Houston, Texas, G.O., Series B,
Tax Exempt Commercial Paper, 3.10%,
4/23/99 A-1+ P-1 3,000 3,000,000
Dallas, Texas, G.O., 5.50%, 2/15/00 AAA Aaa 1,500 1,530,450
Dallas, Texas, Waterworks and Sewer
System, 8.00%, 10/1/99 AAA Aa2 1,000 1,024,720
Deer Park, Texas, Independent School
District, G.O., (PSF Guaranteed),
6.25%, 2/15/00 AAA Aaa 1,400 1,438,754
Harris County, Texas, G.O., Tax
Exempt Commercial Paper,
3.00%, 4/14/99 A-1+ P-1 1,325 1,325,000
Harris County, Texas, G.O., Tax
Exempt Commercial Paper,
3.15%, 5/10/99 A-1+ P-1 2,000 2,000,000
Harris County, Texas, G.O., Toll Road,
6.30%, 8/1/99 AA Aa2 1,150 1,161,577
Harris County, Texas, G.O., Toll Road,
Series G, Variable Rate Weekly
Demand Note, 3.00%, 8/1/20(a) A-1+ VMIG-1 2,800 2,800,000
Harris County, Texas, G.O., Toll Road,
Series H, Variable Rate Weekly
Demand Note, 3.00%, 8/1/20(a) A-1+ VMIG-1 4,600 4,600,000
Lower Colorado River Authority, Texas,
(MBIA Insured), Variable Rate Weekly
Demand Note, 2.90%, 1/1/13(a) A-1+ VMIG-1 28,600 28,600,000
33
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1999
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Texas (continued)
Sabine River Authority, Texas, P.C.R.,
Utilities Electric Company,
(LOC: UBS AG), Variable Rate Daily
Demand Note, 3.35%, 6/1/30(a) A-1+ VMIG-1 $ 3,700 $ 3,700,000
Texas A & M University, Texas,
5.35%, 5/15/99 AA Aa2 1,000 1,001,815
Texas A & M University, Texas, Tax
Exempt Commercial Paper, 3.05%,
4/23/99 A-1+ P-1 4,000 4,000,000
Texas A & M University, Texas, Tax
Exempt Commercial Paper, 2.80%,
5/11/99 A-1+ P-1 2,000 2,000,000
Texas A & M University, Texas, Tax
Exempt Commercial Paper,
2.85%, 7/22/99 A-1+ P-1 12,000 12,000,000
Texas A & M University, Texas, Tax
Exempt Commercial Paper, 3.00%,
7/23/99 A-1+ P-1 6,300 6,300,000
Texas Higher Education Authority,
Series B, (FGIC Insured), Variable
Rate Weekly Demand Note,
3.00%, 12/1/25(a) A-1+ VMIG-1 3,260 3,260,000
Texas Public Finance Authority,
G.O., Tax Exempt Commercial Paper,
2.90%, 5/13/99 A-1+ P-1 2,500 2,500,000
Texas Public Finance Authority, G.O.,
Tax Exempt Commercial Paper,
3.10%, 7/19/99 A-1+ P-1 2,000 2,000,000
Texas Public Finance Authority, G.O.,
Tax Exempt Commercial Paper,
3.15%, 7/22/99 A-1+ P-1 3,500 3,500,000
Texas State, TRANS, 4.50%, 8/31/99 SP-1+ MIG-1 21,650 21,779,999
Travis County, Texas, Health
Facilities Development Corporation,
(Charity Obligation Group),
Series E, Variable Rate Weekly
Demand Note, 2.90%, 11/1/27(a) A-1+ VMIG-1 7,800 7,800,000
University of Texas, Texas, Tax Exempt
Commercial Paper, 3.15%, 7/14/99 A-1+ P-1 4,000 4,000,000
University of Texas, Texas, Tax Exempt
Commercial Paper, 3.05%, 7/19/99 A-1+ P-1 5,000 5,000,000
34
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BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Texas (continued)
University of Texas, Texas, Tax Exempt
Commercial Paper, 3.05%, 7/21/99 A-1+ P-1 $ 5,000 $ 5,000,000
University of Texas, Texas, Tax Exempt
Commercial Paper, 3.15%, 8/9/99 A-1+ P-1 2,000 2,000,000
Waco, Texas, Health Facilities
Development Corporation, (Charity
Obligated Group), Series F,
Variable Rate Weekly
Demand Note, 2.90%, 11/1/26(a) A-1+ VMIG-1 1,000 1,000,000
-------------
170,798,249
-------------
Utah - 1.8%
Utah State, G.O., 4.40%, 7/1/99 AAA Aaa $1,500 $ 1,503,019
Utah State, G.O., Series A, Tax Exempt
Commercial Paper, 3.05%, 4/12/99 A-1+ P-1 4,500 4,500,000
Utah State, G.O., Series A, Tax Exempt
Commercial Paper, 2.95%, 4/14/99 A-1+ P-1 4,000 4,000,000
Utah State, G.O., Series A, Tax Exempt
Commercial Paper,, 3.05%, 4/19/99 A-1+ P-1 2,000 2,000,000
Utah State, G.O., Series A, Tax Exempt
Commercial Paper, 3.00%, 5/6/99 A-1+ P-1 5,000 5,000,000
Utah Transit Authority Sales Tax &
Transportation Revenue, (LOC:
Bayerische Landesbank), Variable
Rate Weekly Demand Note,
3.00%, 5/1/28(a) A-1+ -- 3,400 3,400,000
-------------
20,403,019
-------------
Virginia - 1.5%
Fairfax County, Virginia, G.O.,
Series B, 6.00%, 6/1/99 AAA Aaa 1,550 1,557,924
Hampton Roads, Virginia, Regional
Jail Authority, Series B, (LOC:
Wachovia Bank), Variable Rate
Weekly Demand Note, 3.05%,
7/1/16(a) A-1+ VMIG-1 7,800 7,800,000
Virginia State, G.O., 4.00%, 6/1/99 AAA Aaa 1,400 1,402,307
Virginia State, G.O., 4.50%, 6/1/99 AAA Aaa 2,785 2,789,669
Virginia State, G.O., 5.00%, 6/1/99 AAA Aaa 1,875 1,881,583
Virginia State Public School Authority,
Seriess I, 4.25%, 8/1/99 AA+ Aa1 2,000 2,007,984
-------------
17,439,467
-------------
35
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1999
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Washington - 1.2%
King County, Washington, G.O.,
Series C, 4.00%, 6/1/99 AA+ Aa1 $ 3,000 $ 3,001,300
Thurston County, Washington, G.O.,
(MBIA Insured), 4.75%, 8/1/99 -- AAA 1,875 1,885,675
Washington State, G.O., Series A,
4.25, 7/1/99 AA+ Aa1 2,765 2,770,843
Washington State, G.O., Series C,
5.50, 7/1/99 AA+ Aa1 4,000 4,018,016
Washington State, G.O., 7.20%,
5/1/03, (Escrowed in U.S. Government
Securities), Prerefunded,
5/1/99 @ $100 AA+ AAA 1,000 1,002,715
Washington State, G.O., 7.25%,
5/1/06, (Escrowed in U.S. Government
Securities), Prerefunded,
5/1/99 @ $100 AA+ AAA 1,000 1,002,783
-------------
13,681,332
-------------
Wisconsin - 4.4%
Milwaukee, Wisconsin, G.O., Series A9,
3.85%, 3/1/00 AA+ Aa1 5,180 5,219,365
Milwaukee, Wisconsin, G.O., Series F,
5.00%, 11/15/99 AA+ Aa1 2,185 2,212,366
Milwaukee, Wisconsin, G.O., Series K,
4.25%, 6/15/99 AA+ Aa1 2,705 2,707,917
Oak Creek, Wisconsin, P.C.R.,
(Wisconsin Electric Power Company
Project), Variable Rate Weekly
Demand Note, 3.00%, 8/1/16(a) AA P-1 3,200 3,200,000
Pleasant Prairie, Wisconsin, P.C.R.,
(Wisconsin Electric Power Company
Project), Series B, Variable Rate
Weekly Demand Note, 3.05%, 9/1/30(a) A-1+ P-1 11,150 11,150,000
Wisconsin State, G.O., Series 1,
4.80%, 11/1/99 AA Aa2 1,975 1,994,476
Wisconsin State, Operating Notes,
4.50%, 6/15/99 SP-1+ MIG-1 20,000 20,038,399
36
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating*
------------ Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
Wisconsin (continued)
Wisconsin State, Transportation Revenue,
(LOC: Bayerische Landesbank 33.3%,
Westdeutsche Landesbank 66.7%),
Tax Exempt Commercial Paper,
2.65%, 4/1/99 A-1+ P-1 $ 3,000 $ 3,000,000
--------------
49,522,523
--------------
Wyoming - 0.7%
Sweetwater County, Wyoming, P.C.R.,
Pacificorp Project, Series B,
(LOC: Canadian Imperial Bank),
Variable Rate Daily Demand Note,
3.30%, 1/1/14 A-1+ P-1 2,750 2,750,000
Uinta County, Wyoming, P.C.R.,
(Chevron U.S.A.), Variable Rate
Daily Demand Note, 3.10%, 4/1/10 -- P-1 3,800 3,800,000
Uinta County, Wyoming, P.C.R.,
(Chevron U.S.A.), Variable Rate
Daily Demand Note, 3.10%, 4/1/10 -- P-1 600 600,000
Uinta County, Wyoming, P.C.R.,
(Chevron U.S.A.), Variable Rate
Daily Demand Note, 3.10%, 8/15/20(a) -- P-1 1,100 1,100,000
--------------
8,250,000
--------------
TOTAL INVESTMENTS--98.9%
(Cost $1,119,368,030) $1,119,368,030
OTHER ASSETS LESS LIABILITIES, NET--1.1% 12,623,023
--------------
NET ASSETS--100.0% $1,131,991,053
==============
Net Asset Value, Offering and Redemption Price Per:
Tax-Free Retail Share
($1,047,391,315 divided by 1,047,493,793 shares outstanding) $1.00
=====
Tax-Free Institutional Share
($84,599,738 divided by 84,607,371 shares outstanding) $1.00
=====
37
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets March 31, 1999
TAX-FREE SERIES (concluded)
- --------------------------------------------------------------------------------
- ---------------
(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, 1999.
* The credit ratings are not covered by the report of independent
accountants.
INVESTMENT ABBREVIATIONS:
AMBAC AMBAC Assurance Corporation
BAN Bond Anticipation Notes
FGIC Financial Guaranty Insurance Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance
GO General Obligation Bond
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance Corporation
PCR Pollution Control Revenue Bonds
PSF Public School Facilities
RAN Revenue Anticipation Note
RB Revenue Bond
TAN Tax Anticipation Note
TRAN Tax Revenue Anticipation Note
INSURANCE ABBREVIATIONS:
AMBAC AMBAC Indemnity Corp.
FGIC Financial Guaranty Insurance Corporation
MBIA Municipal Bond Investors Assurance
MOODY'S MUNICIPAL RATINGS:
Aaa Judged to be of the best quality.
Aa 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 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.
38
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statements of Operations
For the year ended March 31, 1999
<TABLE>
<CAPTION>
Prime Treasury Tax-Free
Series Series Series
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest income $ 202,392,068 $ 42,584,715 $ 32,769,158
------------- ------------- -------------
Expenses:
Investment advisory fees 9,800,088 2,099,289 2,642,345
Distribution fees 9,527,563 1,964,145 2,232,564
Transfer agent fees 2,213,530 303,231 127,823
Registration fees 557,046 132,002 158,282
Custodian fees 476,010 68,093 60,882
Shareholder service fees 442,438 67,048 127,363
Professional fees 177,169 54,510 48,416
Accounting fees 167,901 134,044 137,933
Directors' fees 86,534 32,482 18,872
Miscelleaneous 368,231 161,793 7,555
------------- ------------- -------------
Total expenses 23,816,510 5,016,637 5,562,035
Less: Fees waived (114,329) (113,581) --
------------- ------------- -------------
Net expenses 23,702,181 4,903,056 5,562,035
------------- ------------- -------------
Net investment income 78,689,887 37,681,659 27,207,123
------------- ------------- -------------
Net realized gain from
security transactions 88,481 156,495 18,413
------------- ------------- -------------
Net increase in net assets resulting
from operations $ 178,778,368 $ 37,838,154 $ 27,225,536
============= ============= =============
</TABLE>
See Notes to Financial Statements.
39
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets March 31, 1999
<TABLE>
<CAPTION>
PRIME SERIES
- --------------------------------------------------------------------------------------------
For the For the
Year Ended Year Ended
March 31, March 31,
---------- ----------
1999 1998
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net investment income $ 178,689,887 $ 162,086,913
Net realized gain from
security transactions 88,481 --
--------------- ---------------
Net increase in net assets resulting
from operations 178,778,368 162,086,913
--------------- ---------------
Distributions to Shareholders From:
Net investment income:
BT Alex. Brown Cash Reserve
Prime Shares, Treasury Shares and
Tax-Free Shares, respectively (151,410,202) (138,011,807)
BT Alex. Brown Cash Reserve
Prime Institutional Shares,
Treasury Institutional Shares and
Tax-Free Institutional Shares, respectively (16,058,016) (13,656,968)
Flag Investors Class A Shares (435,677) (341,197)
Flag Investors Class B Shares (72,373) (12,545)
Quality Cash Reserve Shares (10,713,744) (10,064,396)
--------------- ---------------
Total distributions (178,690,012) (162,086,913)
--------------- ---------------
Capital Share ransactions, net 496,268,896 849,945,486
--------------- ---------------
Total increase in net assets 496,357,252 849,945,486
Net Assets:
Beginning of period 3,717,409,100 2,867,463,614
--------------- ---------------
End of period $ 4,213,766,352 $ 3,717,409,100
=============== ===============
</TABLE>
40
<PAGE>
<TABLE>
<CAPTION>
TREASURY SERIES TAX-FREE SERIES
- -----------------------------------------------------------------------------------------------------------------------------------
For the Years Ended March 31,
------------------------------------------------------------------------------
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net investment income $ 37,681,660 $ 35,037,012 $ 27,207,123 $ 23,916,200
Net realized gain from
security transactions 156,495 20,785 18,413 (1,994)
--------------- --------------- --------------- ---------------
Net increase in net assets resulting
from operations 37,838,155 35,057,797 27,225,536 23,914,206
--------------- --------------- --------------- ---------------
Distributions to Shareholders From:
Net investment income:
BT Alex. Brown Cash Reserve
Prime Shares, Treasury Shares and
Tax-Free Shares, respectively (33,507,990) (31,623,993) (24,515,362) (21,792,392)
BT Alex. Brown Cash Reserve
Prime Institutional Shares,
Treasury Institutional Shares and
Tax-Free Institutional Shares, respectively (4,334,875) (3,413,019) (2,746,989) (2,123,808)
Flag Investors Class A Shares -- -- -- --
Flag Investors Class B Shares -- -- -- --
Quality Cash Reserve Shares -- -- -- --
--------------- --------------- --------------- ---------------
Total distributions (37,842,865) (35,037,012) (27,262,351) (23,916,200)
--------------- --------------- --------------- ---------------
Capital Share ransactions, net 42,060,849 157,532,323 214,160,192 270,657,645
--------------- --------------- --------------- ---------------
Total increase in net assets 42,056,138 157,553,108 214,123,377 270,655,651
Net Assets:
Beginning of period 897,206,681 739,653,573 917,867,676 647,212,025
--------------- --------------- --------------- ---------------
End of period $ 939,262,819 $ 897,206,681 $ 1,131,991,053 $ 917,867,676
=============== =============== =============== ===============
</TABLE>
See Notes to Financial Statements.
41
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each year)
BT ALEX. BROWN CASH RESERVE PRIME SHARES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
Year Ended
March 31,
----------
1999
<S> <C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
----------------
Income from Investment Operations:
Net investment income 0.0473
Less Distributions:
Dividends from net investment income (0.0473
----------------
Net asset value at end of period $ 1.00
================
Total Return:
Based on net asset value per share 4.84%
Ratios to Average Net Assets:
Expenses 0.63%
Net investment income 4.71%
Supplemental Data:
Net assets at end of period $ 3,727,990,170
Number of shares outstanding at end of period 3,727,906,079
</TABLE>
42
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
BT ALEX. BROWN CASH RESERVE PRIME SHARES (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
--------------------------------------------------------------------------------
1998 1997 1996 1995
<S> <C> <C> <C> <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 0.0494 0.0478 0.0524 0.0442
Less Distributions:
Dividends from net investment income (0.0494) (0.0478) (0.0524) (0.0442)
---------------- ---------------- ---------------- ----------------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
================ ================ ================ ================
Total Return:
Based on net asset value per share 5.05% 4.88% 5.36% 4.51%
Ratios to Average Net Assets:
Expenses 0.67% 0.63% 0.60% 0.61%
Net investment income 4.94% 4.78% 5.21% 4.46%
Supplemental Data:
Net assets at end of period $ 3,164,537,551 $ 2,545,532,365 $ 2,386,681,216 $ 1,472,079,739
Number of shares outstanding at end of period 3,164,529,071 2,545,523,885 2,386,684,392 1,472,077,488
</TABLE>
See Notes to Financial Statements.
43
<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
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
Year Ended
March 31,
- ------------------------------------------------------------------
1999
<S> <C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
------------
Income from Investment Operations:
Net investment income 0.0474
Less Distributions:
Dividends from net investment income (0.0474)
------------
Net asset value at end of period $ 1.00
============
Total Return:
Based on net asset value per share 4.85%
Ratios to Average Net Assets:
Expenses 0.63%
Net investment income 4.67%
Supplemental Data:
Net assets at end of period $ 13,028,272
Number of shares outstanding at end of period 13,027,769
</TABLE>
See Notes to Financial Statements.
44
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
FLAG INVESTORS CASH RESERVE PRIME SHARES--CLASS A (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
- ---------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995
<S> <C> <C> <C> <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 0.0494 0.0478 0.0524 0.0442
Less Distributions:
Dividends from net investment income (0.0494) (0.0478) (0.0524) (0.0442)
----------- ----------- ----------- -----------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== ===========
Total Return:
Based on net asset value per share 5.05% 4.88% 5.36% 4.51%
Ratios to Average Net Assets:
Expenses 0.67% 0.63% 0.60% 0.61%
Net investment income 4.94% 4.78% 5.25% 4.26%
Supplemental Data:
Net assets at end of period $ 7,736,785 $ 6,521,574 $ 5,976,831 $ 7,726,696
Number of shares outstanding at end of period 7,736,522 6,521,310 5,976,824 7,726,698
</TABLE>
See Notes to Financial Statements.
45
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each year)
FLAG INVESTORS CASH RESERVE PRIME SHARES--CLASS B
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
Year Ended
March 31,
- ----------------------------------------------------------------------
1999
<S> <C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
-----------
Income from Investment Operations:
Net investment income 0.0400
Less Distributions:
Dividends from net investment (0.0400)
-----------
Net asset value at end of period $ 1.00
===========
Total Return:
Based on net asset value per share 4.07%
Ratios to Average Net Assets:
Expenses 1.37%
Net investment income 3.92%
Supplemental Data:
Net assets at end of period $ 2,355,863
Number of shares outstanding at end of period 2,355,780
</TABLE>
- ------------------
(1) Commencement of operations.
(2) Annualized.
46
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND. INC.
- --------------------------------------------------------------------------------
FLAG INVESTORS CASH RESERVE PRIME SHARES--CLASS B (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Period April 3, 1995(1)
For the Years Ended March 31, through March 31,
- ----------------------------------------------------------------------------------------------------------------
1998 1997 1996
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00 $ 1.00
--------- --------- --------
Income from Investment Operations:
Net investment income 0.0418 0.0414 0.0361
Less Distributions:
Dividends from net investment (0.0418) (0.0414) (0.0361)
--------- --------- --------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00
========= ========= ========
Total Return:
Based on net asset value per share 4.27% 4.22% 3.69%
Ratios to Average Net Assets:
Expenses 1.42% 1.38% 1.38%(2)
Net investment income 4.18% 4.14% 4.30%(2)
Supplemental Data:
Net assets at end of period $ 184,382 $ 227,098 $ 10,200
Number of shares outstanding at end of period 184,382 227,098 10,200
</TABLE>
See Notes to Financial Statements.
47
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each year)
BT ALEX. BROWN CASH RESERVE PRIME INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
Year Ended
March 31,
- -----------------------------------------------------------------
1999
<S> <C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
-------------
Income from Investment Operations:
Net investment income 0.0499
Less Distributions:
Dividends from net investment income (0.0499)
-------------
Net asset value at end of period $ 1.00
=============
Total Return:
Based on net asset value per share 5.11%
Ratios to Average Net Assets:
Expenses 0.36%
Net investment income 4.98%
Supplemental Data:
Net assets at end of period $ 388,447,492
Number of shares outstanding at end of period 388,440,636
</TABLE>
48
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
BT ALEX. BROWN CASH RESERVE PRIME INSTITUTIONAL SHARES (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
- --------------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995
<S> <C> <C> <C> <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 0.0519 0.0503 0.0548 0.0472
Less Distributions:
Dividends from net investment income (0.0519) (0.0503) (0.0548) (0.0472)
------------- ------------- ------------ ------------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
============= ============= ============ ============
Total Return:
Based on net asset value per share 5.31% 5.15% 5.62% 4.82%
Ratios to Average Net Assets:
Expenses 0.42% 0.38% 0.35% 0.36%
Net investment income 5.22% 5.04% 5.32% 4.57%
Supplemental Data:
Net assets at end of period $ 317,971,693 $ 117,812,047 $ 53,699,315 $ 11,904,716
Number of shares outstanding at end of period 317,971,413 117,811,768 53,699,535 11,904,663
</TABLE>
See Notes to Financial Statements.
49
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each year)
QUALITY CASH RESERVE PRIME SHARES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
Year Ended
March 31,
- ----------------------------------------------------------------------
1999
<S> <C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
------------
Income from Investment Operations:
Net investment income 0.0444
Less Distributions:
Dividends from net investment income (0.0444)
------------
Net asset value at end of period $ 1.00
============
Total Return:
Based on net asset value per share 4.53%
Ratios to Average Net Assets:
Expenses 0.92%(1)
Net investment income 4.44%(2)
Supplemental Data:
Net assets at end of period $ 81,944,555
Number of shares outstanding at end of period 81,938,027
</TABLE>
- --------------
(1) Ratios of expenses to average net assets prior fee wavers was 0.97%, 1.02%,
0.98% and 0.95% for the years ended March 31, 1999, 1998, 1997 and 1996,
respectively.
(2) Ratios of net investment income to average net assets prior to partial fee
waivers was 4.39%, 4.60%, 4.43% and 4.86% for the years ended March 31,
1999, 1998, 1997 and 1996, respectively.
50
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
QUALITY CASH RESERVE PRIME SHARES (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
- ------------------------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995
<S> <C> <C> <C> <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 0.0465 0.0449 0.0493 0.0402
Less Distributions:
Dividends from net investment income (0.0465) (0.0449) (0.0493) (0.0402)
------------- ------------- ------------- ------------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
============= ============= ============= ============
Total Return:
Based on net asset value per share 4.75% 4.59% 5.04% 4.09%
Ratios to Average Net Assets:
Expenses 0.96%(1) 0.91%(1) 0.90%(1) 0.96%
Net investment income 4.66%(2) 4.50%(2) 4.91%(2) 4.04%
Supplemental Data:
Net assets at end of period $ 226,978,689 $ 197,370,530 $ 156,412,213 $ 94,592,158
Number of shares outstanding at end of period 226,978,007 197,369,848 156,412,393 94,591,979
</TABLE>
See Notes to Financial Statements.
51
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each year)
BT ALEX. BROWN CASH RESERVE TREASURY SHARES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
Year Ended
March 31,
- --------------------------------------------------------------------
1999
<S> <C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
--------------
Income from Investment Operations:
Net investment income 0.042
Less Distributions:
Dividends from net investment income (0.042)
--------------
Net asset value at end of period $ 1.00
==============
Total Return:
Based on net asset value per share 4.35%
Ratios to Average Net Assets:
Expenses 0.58%
Net investment income 4.26%
Supplemental Data:
Net assets at end of period $ 816,700,318
Number of shares outstanding at end of period 816,622,190
</TABLE>
- --------------
(1) Ratio of expenses to average daily net assets prior to partial fee waiver
was 0.56% for the year ended March 31, 1995.
(2) Ratio of net investment income to average daily net assets prior to partial
fee waiver was 4.08% for the year ended March 31, 1995.
52
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
BT ALEX. BROWN CASH RESERVE TREASURY SHARES (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
- --------------------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995
<S> <C> <C> <C> <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 0.046 0.045 0.049 0.0411
Less Distributions:
Dividends from net investment income (0.046) (0.045) (0.049) (0.0411)
------------- ------------- ------------- ---------------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
============= ============= ============= ===============
Total Return:
Based on net asset value per share 4.74% 4.63% 5.05% 4.19%
Ratios to Average Net Assets:
Expenses 0.59% 0.61% 0.58% 0.55%(1)
Net investment income 4.65% 4.54% 4.94% 4.09%(2)
Supplemental Data:
Net assets at end of period $ 798,426,658 $ 678,444,803 $ 666,814,158 $ 512,167,212
Number of shares outstanding at end of period 798,354,129 678,391,386 666,762,028 512,162,864
</TABLE>
See Notes to Financial Statements.
53
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each year)
BT ALEX. BROWN CASH RESERVE TREASURY INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
Year Ended
March 31,
- -------------------------------------------------------------------
1999
<S> <C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
-------------
Income from Investment Operations:
Net investment income 0.0453
Less Distributions:
Dividends from net investment income (0.0453)
-------------
Net asset value at end of period $ 1.00
=============
Total Return:
Based on net asset value per share 4.63%
Ratios to Average Net Assets:
Expenses 0.33%
Net investment income 4.54%
Supplemental Data:
Net assets at end of period $ 122,562,501
Number of shares outstanding at end of period 122,561,713
</TABLE>
- -------------------
(1) Ratio of expenses to average daily net assets prior to partial fee waiver
was 0.31% for the year ended March 31, 1995.
(2) Ratio of net investment income to average daily net assets prior to partial
waiver was 4.14% for the year ended March 31, 1995.
54
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
BT ALEX. BROWN CASH RESERVE TREASURY INSTITUTIONAL SHARES (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
- -------------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995
<S> <C> <C> <C> <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 0.0489 0.0481 0.0523 0.0438
Less Distributions:
Dividends from net investment income (0.0489) (0.0481) (0.0523) (0.0438)
------------ ------------ ------------ ------------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============
Total Return:
Based on net asset value per share 5.00% 4.92% 5.36% 4.47%
Ratios to Average Net Assets:
Expenses 0.34% 0.33% 0.33% 0.30%(1)
Net investment income 4.91% 4.81% 5.12% 4.15%(2)
Supplemental Data:
Net assets at end of period $ 98,780,023 $ 61,208,770 $ 51,822,757 $ 14,051,995
Number of shares outstanding at end of period 98,768,925 61,199,345 51,823,226 14,046,467
</TABLE>
See Notes to Financial Statements.
55
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each year)
BT ALEX. BROWN CASH RESERVE TAX-FREE SHARES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
Year Ended
March 31,
- --------------------------------------------------------------------
1999
<S> <C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
---------------
Income from Investment Operations:
Net investment income 0.0277
Less Distributions:
Dividends from net investment income (0.0277)
---------------
Net asset value at end of period $ 1.00
===============
Total Return:
Based on net asset value per share 2.81%
Ratios to Average Net Assets:
Expenses 0.58%
Net investment income 2.74%
Supplemental Data:
Net assets at end of period $ 1,047,391,315
Number of shares outstanding at end of period 1,047,493,739
</TABLE>
56
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
BT ALEX. BROWN CASH RESERVE TAX-FREE SHARES (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
- -----------------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995
<S> <C> <C> <C> <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 0.0306 0.0286 0.0318 0.0271
Less Distributions:
Dividends from net investment income (0.0306) (0.0286) (0.0318) (0.0271)
------------- ------------- ------------- -------------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
============= ============= ============= =============
Total Return:
Based on net asset value per share 3.10% 2.90% 3.23% 2.75%
Ratios to Average Net Assets:
Expenses 0.60% 0.62% 0.60% 0.57%
Net investment income 3.05% 2.86% 3.16% 2.74%
Supplemental Data:
Net assets at end of period $ 841,184,924 $ 647,212,025 $ 571,507,000 $ 475,384,229
Number of shares outstanding at end of period 841,258,030 647,283,274 571,593,265 475,474,913
</TABLE>
See Notes to Financial Statements.
57
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each year)
BT ALEX. BROWN CASH RESERVE TAX-FREE INSTITUTIONAL SERIES
- --------------------------------------------------------------------------------
For the Period
For the June 2, 1997(1)
Year Ended through
March 31, March 31,
------------ --------------
1999 1998
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
------------ ------------
Income from Investment Operations:
Net investment income 0.0303 0.0273
Less Distributions:
Dividends from net investment income
and short-term gains (0.0303) (0.0273)
------------ ------------
Net asset value at end of period $ 1.00 $ 1.00
============ ============
Total Return:
Based on net asset value per share 3.07% 2.76%
Ratios to Average Net Assets:
Expenses 0.33% 0.35%(2)
Net investment income 3.03% 3.29%(2)
Supplemental Data:
Net assets at end of period $ 84,599,738 $ 76,682,752
Number of shares outstanding
at end of period 84,607,371 76,682,889
- ---------------
(1) Commencement of operations.
(2) Annualized
58
<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 is in accordance with Rule 2a-7 of the
Investment Company Act of 1940 and, which approximates market value.
Using this method, the Fund values a security at its cost. The Fund
then assumes a constant amortization to maturity of any discount or
premium.
B. Repurchase Agreements--The Prime Series may enter into tri-party
repurchase agreements with broker-dealers and domestic banks. A
repurchase agreement is a short-term investment in which the Fund buys
a debt security that the broker agrees to repurchase at a set time and
price. The third party, which is the broker's custodial bank, holds
the collateral in a separate account until the repurchase agreement
matures. The agreement ensures that the collateral's market value,
including any accrued interest, is sufficient if the broker defaults.
The Fund's access to the collateral may be delayed or limited if the
broker defaults and the value of the collateral declines or if the
broker enters into an insolvency proceeding.
59
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
NOTE 1--concluded
C. Federal Income Taxes--The Fund determines its distributions according
to income tax regulations, which may be different from generally
accepted accounting principles. As a result, the Fund occasionally
makes reclassifications within its capital accounts to reflect income
and gains that are available for distribution under income tax
regulations.
The Fund is organized as a regulated investment company. As long
as it maintains this status and distributes to its shareholders
substantially all of its taxable net investment income and net
realized capital gains, it will be exempt from most, if not all,
federal income and excise taxes. As a result, the Fund has made no
provisions for federal income taxes. Each portfolio is treated as a
separate entity for federal income tax purposes.
D. Security Transactions, Investment Income and Distributions--The Fund
uses the trade date to account for security transactions and the
specific identification method for financial reporting and income tax
purposes to determine the gain or loss on investments sold or
redeemed. Interest income is recorded on an accrual basis and includes
the pro rata amortization of premiums and accretion of discounts when
appropriate. Dividends to shareholders are declared daily. Dividend
distributions or reinvestments are made monthly.
E. Expenses--Operating expenses for each share class are recorded on an
accrual basis, and are charged to that class' operations. If a Fund
expense cannot be directly attributed to a share class, the expense is
prorated among the classes that the expense affects and is based on
the classes' relative net assets.
NOTE 2--Investment Advisory Fees, Transactions with Affiliates and Other Fees
Investment Company Capital Corp. ("ICC"), a subsidiary of Bankers Trust
Corporation, is the investment advisor for all series. Under the terms of the
investment advisory agreement, the Fund pays ICC a fee. This fee is calculated
daily and paid monthly, at the following annual rates based upon the Fund's
aggregate average daily net assets: .30% of the first $500 million, .26% of the
next $500 million, .25% of the next $500 million, .24% of the next $1 billion,
.23% of the next $1 billion and .22% of the amount over $3.5 billion. The Prime
Series pays an additional fee that is calculated daily and paid monthly at the
annual rate of .02% of its average daily net assets. The Tax-Free Series also
pays an additional fee that is calculated daily and paid monthly at the annual
rate of .03% of its average daily net assets.
As compensation for accounting services, the Prime Series, Treasury Series,
and Tax-Free Series pay ICC an annual fee that is calculated daily and paid
monthly from the three series' average daily net assets. The Prime Series paid
$167,901, the Treasury Series paid $134,044 and the Tax-Free Series paid
$137,933, for accounting services for the year ended March 31, 1999.
60
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- ------------------------------------------------------------------------------
Notes to Financial Statements (continued)
NOTE 2--continued
As compensation for its transfer agent services, the three series pay ICC a
per account fee that is calculated and paid monthly. The Prime Series paid
$2,213,530, the Treasury Series paid $303,231 and the Tax-Free Series paid
$127,823 to ICC for transfer agent services for the year ended March 31, 1999.
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., a member of the Forum Group of Companies, ("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, 1999,
distribution fees aggregated $8,036,615, $23,274, $1,964,145 and $2,232,564 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 $1,449,220 for the year ended March 31,
1999 and 1.00% of the Flag Investors Class B Shares' aggregate average daily net
assets or $18,454.
ICC and ICC Distributors may voluntarily waive a portion of their advisory
or distribution fees for the Prime, Treasury and Tax-Free Series to preserve or
enhance each series' performance. These voluntary waivers are not contractual
and could change. ICC did not waive any advisory fees for the year ended March
31, 1999. ICC Distributors voluntarily waived $114,329 of its distribution fees
for the Quality Cash Shares for the period April 1, 1998 to December 31, 1998.
There was no waiver for the period January 1 through March 31, 1999.
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, 1999 was $104,755 for the Prime Series, $32,916 for the Treasury
Series and $15,403 for the Tax-Free Series. The accrued liability at March 31,
1999 was $267,276 for the Prime Series, $92,176 for the Treasury Series and
$90,975 for the Tax-Free Series.
Bankers Trust Company is a wholly owned subsidiary of Bankers Trust
Corporation. On November 30, 1998, Bankers Trust Corporation entered into an
Agreement and Plan of Merger with Deutsche Bank AG under which Bankers Trust
Corporation would merge with and into a subsidiary of Deutsche Bank AG. Deutsche
Bank AG is a major global banking institution that is engaged in a wide range of
financial services, including investment management, mutual funds, retail and
commercial banking, investment banking and insurance. The transaction is
contingent upon various regulatory approvals, and continuation of the Fund's
advisory relationship with Bankers Trust thereafter is subject to the approval
of Fund shareholders. If the transaction is approved and completed, Deutsche
Bank AG, as Bankers Trust's new parent company, will control its operations as
investment advisor. Bankers Trust believes that, under this new arrangement, the
services provided to the Fund will be maintained at their current level.
61
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- ------------------------------------------------------------------------------
Notes to Financial Statements (continued)
NOTE 2--concluded
Effective January 1, 1999 BT Alex. Brown Cash Reserve Fund, Inc. (the
"Fund") has adopted the Shareholder Service Plan (the "Plan") for the BT Alex.
Brown Cash Reserve Shares of the Prime Treasury and Tax-Free Series of the Fund
("Shares") in order to provide compensation to third parties ("Shareholder
Servicing Agents") who provide shareholder services to clients ("Clients") who
from time to time beneficially own shares. In consideration of these services
provided by any Shareholder Servicing Agent, the Fund will pay the Distributor
an annual fee, calculated daily and paid monthly equal to 0.05% of the shares'
average daily net assets.
Effective January 1, 1999 the Advisor is waiving its fee on the Treasury
Series by 0.05%. Absent such fee waivers, Management Fees would be 0.25% and
Total Fund Operating Expenses should be 0.59% on the retail shares and
Management Fees would be 0.25% and Total Fund Operating Expenses should be 0.34%
on the institutional shares based on average daily net assets. The waiver is
voluntary and may be terminated at any time.
NOTE 3--Capital Stock and Share Information
The Fund is authorized to issue up to 9 billion shares of $.001 par value
capital stock (5.4 billion Prime Series, 1.5 billion Treasury Series, 1.75
billion Tax-Free Series and 350 million undesignated). Transactions in shares of
the Fund were as follows:
For the For the
Year Ended Year Ended
March 31, 1999 March 31, 1998
-------------- --------------
Prime Series:
Sold:
Prime Shares 21,238,313,843 23,206,115,785
Flag Investors Class A Shares 86,081,920 6,559,775
Flag Investors Class B Shares 8,010,702 336,592
Institutional Prime Shares 5,126,520,627 4,625,290,052
Quality Cash Shares 1,143,097,219 1,179,123,143
Issued as reinvestment of dividends:
Prime Shares 143,654,045 129,425,606
Flag Investors Class A Shares 385,752 326,541
Flag Investors Class B Shares 55,849 8,133
Institutional Prime Shares 12,241,514 9,131,786
Quality Cash Shares 10,243,851 9,723,053
Redeemed:
Prime Shares (20,818,590,880) (22,716,536,205)
Flag Investors Class A Shares (81,176,425) (5,671,105)
Flag Investors Class B Shares (5,895,153) (387,440)
Institutional Prime Shares (5,068,292,918) (4,434,262,192)
Quality Cash Shares (1,298,381,050) (1,159,238,038)
--------------- ---------------
Net increase 496,268,896 849,945,486
=============== ===============
62
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
NOTE 3--concluded
For the For the
Year Ended Year Ended
March 31, 1999 March 31, 1998
-------------- --------------
Treasury Series:
Sold:
Treasury Shares 4,361,406,499 3,641,511,991
Institutional Treasury Shares 826,662,420 590,751,899
Issued as reinvestment of dividends:
Treasury Shares 32,190,535 30,209,607
Institutional Treasury Shares 2,757,290 2,007,274
Redeemed:
Treasury Shares (4,375,328,973) (3,551,758,854)
Institutional Treasury Shares (805,626,922) (555,189,594)
-------------- --------------
Net increase 42,060,849 157,532,323
============== ==============
Tax-Free Series:
Sold:
Tax-Free Shares 5,341,857,730 5,853,542,023
Institutional Tax-Free Shares 1,008,685,495 730,445,736
Issued as reinvestment of dividends:
Tax-Free Shares 23,390,210 20,778,337
Institutional Tax-Free Shares 1,157,547 276,010
Redeemed:
Tax-Free Shares (5,159,012,230) (5,680,345,603)
Institutional Tax-Free Shares (1,001,918,516) (654,038,858)
-------------- --------------
Net increase 214,160,192 270,657,645
============== ==============
Note 4--Net Assets
<TABLE>
<CAPTION>
Prime Treasury Tax-Free
Series Series Series
-------------- --------------- ---------------
<S> <C> <C> <C>
Paid $4,213,671,028 $ 939,179,715 $ 1,132,102,494
Undistributed net investment income
(distribution in excess) 8,345 (44,873) (55,228)
Undistributed net realized gain/(loss) on
sales of investments 86,979 127,977 (56,213)
-------------- --------------- ---------------
$4,213,766,352 $ 939,262,819 $ 1,131,991,053
============== =============== ===============
</TABLE>
63
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (concluded)
Note 5--Capital Loss Carryforwards
At March 31, 1999 capital loss carryforwards available as a reduction
against future net realized capital gains aggregate as follow:
<TABLE>
<CAPTION>
Capital Loss Carryforward
Net Realized Expiration Year
Capital Loss --------------------------------------------------------------------
Carryforwards 2000 2001 2002 2003 2004 2005 2006
------------------- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Prime Series -- -- -- -- -- -- -- --
Treasury Series -- -- -- -- -- -- -- --
Tax Free Series $56,213 -- $6,268 $21,858 $26,991 -- -- $1,096
</TABLE>
64
<PAGE>
Report of Independent Accountants
- --------------------------------------------------------------------------------
To The Shareholders and Board of Directors of
bt Alex. Brown Cash Reserve Fund, Inc.:
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
BT Alex. Brown Cash Reserve Fund, Inc. (consisting of the Prime, Treasury and
Tax-Free Series) (the "Fund") at March 31, 1999, and the results of its
operations, the changes in its net assets and the financial highlights for each
of the fiscal periods presented, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at March 31, 1999 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PRICEWATERHOUSECOOPERS LLP
Baltimore, Maryland
April 30, 1999
65
<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, 1999 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, 1999 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.
<PAGE>
Board of Directors
- --------------------------------------------------------------------------------
RICHARD T. HALE EUGENE J. McDONALD
Chairman Director
JAMES J. CUNNANE REBECCA W. RIMEL
Director Director
JOSEPH R. HARDIMAN TRUMAN T. SEMANS
Director Director
LOUIS E. LEVY CARL W. VOGT, Esq.
Director Director
Officers
- --------------------------------------------------------------------------------
HARRY WOOLF AMY M. OLMERT
President Secretary
JOSEPH A. FINELLI SCOTT J. LIOTTA
Treasurer Assistant Secretary
- --------------------------------------------------------------------------------
Distributor Transfer Agent
ICC DISTRIBUTORS, INC. INVESTMENT COMPANY CAPITAL CORP.
Two Portland Square One South Street
Portland, ME 04101 Baltimore, MD 21202
(207) 879-6200 (800) 553-8080
Investment Advisor Independent Accountants
INVESTMENT COMPANY CAPITAL CORP. PRICEWATERHOUSECOOPERS LLP
One South Street 250 West Pratt Street
Baltimore, MD 21202 Baltimore, MD 21201
Custodian
BANKERS TRUST COMPANY
130 Liberty Street
New York, NY 10006
- ------------------------------------------------------------------------------
This report is prepared for the general information of shareholders of BT Alex.
Brown Cash Reserve Fund, Inc. It may be distributed only to current shareholders
or to persons who have received a current prospectus.
67
<PAGE>
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<PAGE>
This page intentionally left blank.
<PAGE>
BT ALEX. BROWN CASH RESERVE FUND, INC. BULK RATE
P.O. Box 1346 U.S. Postage
Baltimore, MD 21203 PAID
Hudson, MA
Permit No. 19
