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[Flag Investors logo omitted]
CASH RESERVE
PRIME SHARES
Annual Report
March 31, 2000
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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 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 of Flag Investors Cash Reserve
Prime Shares on January 5, 1989. 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 $2,000. Subsequent investments may be
$100 or more.
This report is prepared for the general information of shareholders of Flag
Investors Cash Reserve Prime Shares. It may be distributed only to current
shareholders or to persons who have received a current prospectus.
<PAGE>
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, 2000.
MARKET ACTIVITY
Three major factors impacted the money markets over the annual period ended
March 31, 2000--the ongoing extraordinary performance of the U.S. economy, the
actions of the Federal Reserve Board, and the liquidity concerns surrounding
Y2K. These factors combined to push yields on short-term money market securities
significantly higher.
o RAPID U.S. ECONOMIC GROWTH, BENIGN INFLATION, THE LOWEST UNEMPLOYMENT RATE
IN A GENERATION, AND A SPECTACULAR RUNUP IN THE U.S. EQUITY MARKET GAVE
CONSUMERS THE CONFIDENCE NECESSARY TO UTILIZE THEIR PURCHASING POWER.
Housing, retail sales, and auto sales were all at historic levels. Subdued
wage demands, competitive pressures, productivity improvements and global
overcapacity combined to keep prices in check. Simultaneously, foreign
economies around the world showed clear signs of recovery, with growth
rates in Europe and Asia, in particular, increasing.
o THE FEDERAL RESERVE BOARD RAISED SHORT-TERM INTEREST RATES FIVE TIMES
DURING THE FUND'S FISCAL YEAR. The Fed argued that the pace of the economy
could not be indefinitely supported by labor force growth and productivity
and thus may rekindle inflation. The Fed moved interest rates three times
in 1999--on June 30, August 24 and November 16--and twice in the first
quarter of 2000--on February 2 and March 21. The increases were slow and
methodical at hikes of 0.25% each time.
o MONEY MARKET INVESTORS AND ISSUERS ALIKE BELIEVED LIQUIDITY WOULD BE SCARCE
OVER YEAR-END 1999, AS ANTICIPATION OF Y2K GREW INCREASINGLY UNCERTAIN.
Both corporate and asset-backed issuers flooded the market with paper early
in the fourth quarter of 1999, hoping to secure their year-end financing.
To calm the markets, the Fed announced in October that it would provide the
market with several liquidity facilities, including a repurchase agreement
facility with expanded collateral guidelines and a Standby Financing
Facility. The U.S. Treasury also issued substantial amounts of cash
management bills, adding much needed liquidity to the market at year end.
As with most other secular Y2K fears, the money markets' liquidity concerns
also turned out to be for naught.
1
<PAGE>
LETTER TO SHAREHOLDERS (CONTINUED)
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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) rating of the portfolio of which the Flag Investors Shares are
classes. The portfolio maintains 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.
Our strategy in this Fund continued to be concentrated on investing in high
quality issues. As of March 31, 2000, 77.8% of the Fund was invested in
securities rated A1+/P1 and 22.2% in securities rated A1/P1, by Standard &
Poor's and Moody's.
Throughout most of 1999, we maintained a slightly long to the benchmark
weighted average maturity position, taking advantage of the steep yield curve in
money markets, as issuers and investors anticipated higher interest rates.
Towards the end of the year, money market issuers were very aggressive, seeking
to extend their maturities into the year 2000 to avoid potential Y2K problems.
This excessive issuance caused both an abnormally steep yield curve in fixed
rate securities and wide yield spreads on floating rate notes. We took advantage
of both--as well as the Fed rate increases--by "barbelling" the portfolio, with
fixed securities and floating rate instruments. This strategy proved to be
effective for the portfolio. We also successfully maintained the liquidity
necessary for potential Y2K problems by purchasing Treasury bills and other very
liquid instruments during the last quarter of 1999.
Performance Comparisons
7-Day Current Yield as of 3/31/00
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Flag Investors Cash Reserve Prime Shares--Class A 5.32%
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First Tier Retail Money Fund Average 5.29%
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Source: IBC/Donoghue, Inc. "Money Fund Report."
The yields shown represent past performance, which is no guarantee of future
results. Yields will vary. The Money Fund Average is the average yield of all
funds in its respective categories.
2
<PAGE>
LETTER TO SHAREHOLDERS (CONCLUDED)
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In the first quarter of 2000, we began to utilize the expanded guidelines
approved by the Fund's Board of Directors. Although we purchased foreign
issuers' securities, we did not change the credit quality of the portfolio, and
all issuers still must be rated in the highest rating categories by two rating
agencies, such as Standard & Poor's and Moody's Investors Services. As of March
31, 2000, 67.9% of the Fund was invested in U.S. commercial paper, 16.3% in
corporate floating rate securities, 6.8% in Euro time deposits, 4.0% in Yankee
certificates of deposit, 3.2% in Euro-dollar certificates of deposit, 0.9% in
U.S. certificates of deposit, 0.8% in U.S. medium-term notes, and 0.1% in
government agency securities.
LOOKING AHEAD
We now know that the concerns and fears surrounding Y2K turned out to be a
non-event. The world at large and the financial markets in particular continued
to hum along without interruption. Looking ahead for the near term, we believe
the U.S. economy still has substantial momentum, and the financial fundamentals
for both households and businesses remain strong. Thus, we also feel that it
will take somewhat higher interest rates to tone down the economy. We believe
that more 0.25% incremental increases in rates are forthcoming from the Federal
Reserve Board over the next few months before it pauses to assess the results of
these tightenings on economic growth.
Our strategy for the Fund going forward is to continue managing the
portfolio with a shorter duration than we did in 1999. We also intend to
maintain a significant position in floating rate securities seeking to take
advantage not only of any further increases in interest rates but also of the
potential higher yields offered by these types of securities. We will continue
to concentrate the portfolio 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 will provide comfort, as well as competitive yields, to
our shareholders.
As always, we appreciate your continued support.
Sincerely,
/s/SIGNATURE DARLENE M. RASEL
Darlene M. Rasel
Portfolio Manager
March 31, 2000
3
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS MARCH 31, 2000
Rating(a) Par
------------
Prime Series S&P Moody's (000) Value
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COMMERCIAL PAPER(b) - 68.7%
AIRCRAFT & AEROSPACE - 1.1%
Bae Systems PLC
6.05% 4/24/00 ........... A-1 P-1 $ 50,000 $ 49,806,736
British Aerospace PLC
5.99% 6/8/00 ............ A-1 P-1 25,000 24,717,139
--------------
74,523,875
--------------
ASSET BACKED - 21.0%
Bavaria TRR Corp.
6.07% 5/4/00 ............ A-1 P-1 19,000 18,900,688
Ciesco, LP.
6.08% 4/20/00 ........... A-1+ P-1 50,000 49,839,556
6.08% 4/28/00 ........... A-1+ P-1 25,000 24,886,000
Compass Securitization LLC
5.88% 4/4/00 ............ A-1+ P-1 40,000 39,980,400
6.04% 4/19/00 ........... A-1+ P-1 25,000 24,924,500
6.07% 4/25/00 ........... A-1+ P-1 20,000 19,919,067
5.87% 4/28/00 ........... A-1+ P-1 45,000 44,801,888
5.93% 5/3/00 ............ A-1+ P-1 19,300 19,198,268
Corporate Asset Funding Co., Inc.
5.87% 4/11/00 ........... A-1+ P-1 65,000 64,894,014
6.08% 4/25/00 ........... A-1+ P-1 75,000 74,696,000
6.05% 5/4/00 ............ A-1+ P-1 45,000 44,750,438
6.06% 5/15/00 ........... A-1+ P-1 25,000 24,814,833
Corporate Receivables Corp.
5.875% 4/10/00 ........... A-1+ P-1 30,000 29,955,937
5.94% 6/19/00 ........... A-1+ P-1 10,000 9,869,650
Delaware Funding Corp.
6.03% 4/5/00 ............ A-1+ P-1 30,000 29,979,900
5.86% 4/26/00 ........... A-1+ P-1 14,308 14,249,774
6.10% 6/5/00 ............ A-1+ P-1 15,000 14,834,792
Greyhawk Funding LLC.
5.87% 4/24/00 ........... A-1+ P-1 15,000 14,943,746
5.87% 4/26/00 ........... A-1+ P-1 25,000 24,898,090
5.92% 5/17/00 ........... A-1+ P-1 30,000 29,773,066
Moriarty Ltd.
6.20% 9/25/00 ........... A-1+ P-1 25,000 24,237,917
Park Avenue Receivables Corp.
6.12% 4/10/00 ........... A-1 P-1 30,000 29,954,100
Private Export Funding Corp.
5.99% 4/6/00 ............ A-1+ P-1 25,000 24,979,201
6.00% 6/22/00 ........... A-1+ P-1 22,000 21,699,333
Quincy Capital Corp.
5.97% 5/2/00 ............ A-1+ P-1 10,000 9,948,592
Receivables Capital Corp.
5.85% 4/5/00 ............ A-1+ P-1 10,000 9,993,500
6.10% 4/20/00 ........... A-1+ P-1 40,000 39,871,222
6.00% 5/5/00 ............ A-1+ P-1 7,795 7,750,828
4
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FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
Rating(a) Par
------------
Prime Series S&P Moody's (000) Value
--------------------------------------------------------------------------------
COMMERCIAL PAPER - (CONTINUED)
ASSET BACKED - (CONTINUED)
Riverwoods Funding Corp.
5.85% 4/20/00 ........... A-1+ P-1 $ 20,000 $ 19,938,250
Santander Finance Bank
5.92% 4/25/00 ........... A-1 P-1 35,000 34,861,867
Sheffield Receivables Corp.
6.06% 4/19/00 ........... A-1+ P-1 70,000 69,787,900
6.09% 4/20/00 ........... A-1+ P-1 166,700 166,167,154
6.10% 4/27/00 ........... A-1+ P-1 25,000 24,889,861
6.10% 4/28/00 ........... A-1+ P-1 20,000 19,908,500
5.98% 6/5/00 ............ A-1+ P-1 20,000 19,784,055
Tulip Funding Corp.
5.95% 5/26/00 ........... A-1+ P-1 25,000 24,772,743
6.15% 6/15/00 ........... A-1+ P-1 60,000 59,231,667
Windmill Funding Corp.
5.92% 4/10/00 ........... A-1+ P-1 40,000 39,940,800
6.05% 4/19/00 ........... A-1+ P-1 44,000 43,866,900
5.87% 4/25/00 ........... A-1+ P-1 25,000 24,902,166
6.11% 6/21/00 ........... A-1+ P-1 12,000 11,835,030
6.09% 6/26/00 ........... A-1+ P-1 15,000 14,781,776
--------------
1,363,213,969
--------------
AUTOMOBILES & TRUCKS - 5.0%
Ford Motor Credit Corp.
6.12% 4/4/00 ............ A-1 P-1 100,000 99,949,000
PACCAR Financial Corp.
5.90% 5/18/00 ........... A-1+ P-1 13,000 12,899,864
Toyota Motor Credit Corp.
5.99% 4/20/00 ........... A-1+ P-1 49,750 49,592,721
6.04% 4/26/00 ........... A-1+ P-1 50,000 49,790,278
6.00% 5/8/00 ............ A-1+ P-1 16,500 16,398,250
5.945% 5/9/00 ............ A-1+ P-1 50,000 49,686,236
6.00% 5/11/00 ........... A-1+ P-1 20,000 19,866,667
6.05% 8/28/00 ........... A-1+ P-1 25,000 24,373,992
--------------
322,557,008
--------------
BANKS - 2.5%
Bank of America
5.89% 5/3/00 ............ A-1 P-1 25,000 24,869,111
6.06% 8/9/00 ............ A-1 P-1 40,000 39,124,667
6.10% 9/8/00 ............ A-1 P-1 18,000 17,512,000
Fortis Funding LLC
6.02% 4/24/00 ........... A-1+ P-1 50,000 49,807,694
6.08% 9/1/00 ............ A-1+ P-1 30,000 29,224,800
--------------
160,538,272
--------------
5
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS MARCH 31, 2000
Rating(a) Par
------------
Prime Series S&P Moody's (000) Value
--------------------------------------------------------------------------------
COMMERCIAL PAPER - (CONTINUED)
CONGLOMERATES - 0.9%
Honeywell International Inc.
6.05% 4/26/00 ........... A-1 P-1 $ 19,798 $ 19,714,821
5.91% 5/15/00 ........... A-1 P-1 40,000 39,711,067
--------------
59,425,888
--------------
CONSUMER PRODUCTS - 0.8%
Gillette Co.
6.01% 4/10/00 ........... A-1+ P-1 53,500 53,419,616
--------------
CORPORATE - 0.2%
Rio Tinto America, Inc.
5.90% 4/26/00 ........... A-1+ P-1 12,000 11,950,833
--------------
ELECTRICAL & ELECTRONICS - 0.4%
Invensys PLC
5.92% 5/8/00 ............ A-1 P-1 25,000 24,847,889
--------------
FINANCE, CONSUMER - 1.5%
American Express Co.
6.40% 4/3/00 ............ A-1 P-1 97,800 97,765,227
--------------
FINANCE, DIVERSIFIED - 5.8%
Associates First Capital Corp.
6.03% 4/12/00 ........... A-1 P-1 40,000 39,926,300
5.90% 5/3/00 ............ A-1 P-1 25,000 24,868,889
5.88% 5/11/00 ........... A-1 P-1 30,000 29,804,000
5.92% 5/25/00 ........... A-1 P-1 20,000 19,822,400
General Electric Capital Corp.
5.78% 4/20/00 ........... A-1+ P-1 25,000 24,923,736
6.04% 4/26/00 ........... A-1+ P-1 35,000 34,853,194
5.91% 5/3/00 ............ A-1+ P-1 20,000 19,894,933
5.83% 5/5/00 ............ A-1+ P-1 10,000 9,944,939
5.90% 5/11/00 ........... A-1+ P-1 25,000 24,836,111
5.94% 5/17/00 ........... A-1+ P-1 30,000 29,772,300
5.88% 5/18/00 ........... A-1+ P-1 50,000 49,616,167
5.90% 5/19/00 ........... A-1+ P-1 40,000 39,685,333
5.94% 5/22/00 ........... A-1+ P-1 25,000 24,789,626
--------------
372,737,928
--------------
FINANCIAL SERVICES - 3.1%
Goldman Sachs, Inc.
6.09% 8/22/00 ............. A-1+ P-1 65,000 63,427,596
Merrill Lynch & Co., Inc.
5.93% 5/22/00 ........... A-1+ P-1 60,000 59,495,950
Morgan Stanley Dean Witter
5.85% 4/3/00 ............ A-1 P-1 30,000 29,990,250
6
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
Rating(a) Par
------------
Prime Series S&P Moody's (000) Value
--------------------------------------------------------------------------------
COMMERCIAL PAPER - (CONTINUED)
FINANCIAL SERVICES - (CONTINUED)
Salomon Smith Barney, Inc.
5.95% 5/15/00 ........... A-1 P-1 $ 50,000 $ 49,636,389
--------------
202,550,185
--------------
FOODS - 1.5%
Albertsons, Inc.
6.02% 4/6/00 ............ A-1 P-1 45,000 44,962,375
6.08% 4/13/00 ........... A-1 P-1 20,000 19,959,467
H.J. Heinz Co.
5.98% 4/20/00 ........... A-1 P-1 24,000 23,924,253
Sysco Corp.
6.25% 4/3/00 ............ A-1+ P-1 7,000 6,997,569
--------------
95,843,664
--------------
FOREIGN SOVEREIGNS - 1.9%
Eksportfinans A/S
6.07% 4/12/00 ........... A-1+ P-1 45,000 44,916,538
5.92% 5/24/00 ........... A-1+ P-1 35,000 34,694,956
Province of Quebec
6.09% 8/17/00 ........... A-1+ P-1 35,000 34,182,925
6.09% 8/21/00 ........... A-1+ P-1 8,000 7,807,827
--------------
121,602,246
--------------
INSURANCE, PROPERTY AND CASUALTY - 7.1%
Aegon Funding Corp.
5.91% 5/22/00 ........... A-1+ P-1 20,000 19,832,550
6.17% 9/13/00 ........... A-1+ P-1 25,000 24,293,021
6.18% 9/18/00 ........... A-1+ P-1 15,000 14,562,250
6.20% 12/1/00 ........... A-1+ P-1 30,000 28,739,333
John Hancock Capital Corp.
5.98% 4/14/00 ........... A-1+ P-1 40,255 40,168,072
Met Life Funding Inc.
6.03% 4/17/00 ........... A-1+ P-1 30,789 30,706,485
6.03% 4/18/00 ........... A-1+ P-1 46,000 45,869,015
6.03% 4/24/00 ........... A-1+ P-1 46,645 46,465,300
Teachers Insurance & Annuity
Association of America
6.25% 4/3/00 ............ A-1+ P-1 113,434 113,394,613
6.02% 4/20/00 ........... A-1+ P-1 50,000 49,841,139
Transamerica Finance Corp.
6.25% 4/3/00 ............ A-1 P-1 50,000 49,982,639
--------------
463,854,417
--------------
7
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS MARCH 31, 2000
Rating(a) Par
------------
Prime Series S&P Moody's (000) Value
--------------------------------------------------------------------------------
COMMERCIAL PAPER - (CONTINUED)
INTEGRATED OIL - 3.1%
Exxon Mobil Australia Ltd.
5.98% 4/6/00 ............ A-1+ P-1 $100,000 $ 99,916,944
BP Amoco Capital PLC.
6.23% 4/3/00 ............ A-1+ P-1 100,000 99,965,389
--------------
199,882,333
--------------
OIL TRANSPORTATION - 0.5%
Colonial Pipeline Co.
5.75% 4/4/00 ............ A-1+ P-1 10,750 10,744,849
5.75% 4/27/00 ........... A-1+ P-1 11,500 11,452,243
5.78% 5/17/00 ........... A-1+ P-1 8,000 7,940,916
6.05% 7/17/00 ........... A-1+ P-1 3,500 3,437,063
--------------
33,575,071
--------------
PHARMACEUTICALS - 1.0%
Johnson & Johnson
5.82% 4/14/00 ........... A-1+ P-1 65,000 64,863,572
--------------
TELEPHONE - 8.3%
AT&T Corp.
6.00% 4/4/00 ............ A-1+ P-1 30,000 29,985,000
6.00% 4/6/00 ............ A-1+ P-1 20,000 19,983,333
5.87% 5/10/00 ........... A-1+ P-1 5,000 4,968,204
Bell Atlantic Network Funding Corp.
5.82% 4/4/00 ............ A-1+ P-1 20,000 19,990,300
5.99% 4/18/00 ........... A-1+ P-1 5,702 5,685,871
5.99% 4/24/00 ........... A-1+ P-1 10,492 10,451,848
Bell South Telecommunications, Inc.
6.07% 4/26/00 ........... A-1+ P-1 11,300 11,252,367
British Telecomunications PLC, Inc.
6.22% 12/4/00 ........... A-1+ P-1 30,000 28,719,717
France Telecom
6.10% 4/3/00 ............ A-1+ P-1 60,000 59,979,667
6.02% 4/17/00 ........... A-1+ P-1 63,795 63,624,313
6.08% 4/20/00 ........... A-1+ P-1 8,877 8,848,515
6.08% 4/28/00 ........... A-1+ P-1 35,000 34,840,400
6.05% 5/22/00 ........... A-1+ P-1 45,000 44,614,313
5.93% 6/1/00 ............ A-1+ P-1 40,000 39,598,078
SBC Communications, Inc.
5.68% 5/15/00 ........... A-1+ P-1 15,000 14,895,867
6.06% 5/19/00 ........... A-1+ P-1 40,000 39,676,800
Vodafone Airtouch PLC.
6.27% 4/3/00 ............ A-1 P-1 100,000 99,965,166
--------------
537,079,759
--------------
8
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
Rating(a) Par
------------
Prime Series S&P Moody's (000) Value
--------------------------------------------------------------------------------
COMMERCIAL PAPER - (CONTINUED)
UTILITIES - 3.2%
National Rural Utilities Corporate Finance Corporation
5.90% 4/3/00 ............ A-1+ P-1 $ 25,000 $ 24,991,806
5.83% 4/7/00 ............ A-1+ P-1 45,000 44,956,275
6.13% 7/17/00 ........... A-1+ P-1 20,000 19,635,606
6.12% 7/18/00 ........... A-1+ P-1 51,136 50,197,143
6.08% 9/11/00 ........... A-1+ P-1 20,000 19,449,422
6.145% 9/19/00 ........... A-1+ P-1 25,000 24,270,282
6.22% 12/1/00 ........... A-1+ P-1 25,000 23,946,056
--------------
207,446,590
--------------
TOTAL COMMERCIAL PAPER (Amortized Cost $4,467,678,342) ..... 4,467,678,342
--------------
MEDIUM-TERM NOTE - 0.8%
E.I. Dupont de Nemours and Co.
5.079% 4/3/00 ............ A-1+ P-1 30,000 29,998,114
4.998% 4/14/00 ........... A-1+ P-1 20,000 19,991,906
--------------
TOTAL MEDIUM TERM NOTE (Amortized Cost $49,990,020) ........ 49,990,020
--------------
FLOATING RATE - NOTE - 16.5%
American Express Co.
6.081% 2/23/01 ........... A-1 P-1 30,000 30,000,000
AT&T Corp.
5.99% 7/13/00 ........... A-1+ P-1 15,000 14,998,312
6.128% 8/7/00 ............ A-1+ P-1 10,000 10,000,685
5.89% 3/8/01 ............ A-1+ P-1 60,000 59,989,109
Associates Corp. of North America
5.917% 3/16/01 ........... A-1 P-1 65,000 64,954,214
Bank of America
6.25% 1/25/01 ........... A-1 P-1 35,000 35,000,000
Bayerische Landesbank Girozentrale
5.925% 11/9/00 ........... A-1+ P-1 40,000 39,993,529
6.04% 2/26/01 ........... A-1+ P-1 50,000 49,977,809
6.049% 2/28/01 ........... A-1+ P-1 40,000 39,982,185
6.051% 3/1/01 ............ A-1+ P-1 40,000 39,982,099
Chase Manhattan Bank
6.358% 11/2/00 ........... A-1+ P-1 35,000 35,066,880
6.34% 11/17/00 .......... A-1+ P-1 15,000 15,027,480
Credit Agricole Indosuez SA
5.94% 11/8/00 ........... A-1+ P-1 35,000 34,999,793
Credit Suisse First Boston, Inc.
5.84% 2/20/01 ........... A-1+ P-1 30,000 29,997,35
9
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS MARCH 31, 2000
Rating(a) Par
------------
Prime Series S&P Moody's (000) Value
--------------------------------------------------------------------------------
FLOATING RATE - NOTE - (CONTINUED)
Federal Home Loan Bank
6.156% 4/14/00 ........... A-1+ P-1 $ 50,000 $ 49,999,112
5.874% 5/12/00 ........... A-1+ P-1 20,000 19,998,096
5.819% 7/12/00 ........... A-1+ P-1 6,000 5,999,164
Federal National Mortgage Association
5.85% 11/17/00 .......... A-1+ P-1 10,000 9,993,150
5.953% 11/22/00 .......... A-1+ P-1 15,000 14,992,295
Ford Motor Credit Corp.
6.06% 11/22/00 .......... A-1 P-1 35,000 35,000,676
General Electric Capital Corp.
5.976% 4/12/00 ........... A-1+ P-1 25,000 25,000,000
6.049% 5/12/00 ........... A-1+ P-1 10,000 10,000,000
Goldman Sachs, Inc
6.22% 1/25/01 ........... A-1+ P-1 40,000 40,059,602
Household Finance Corp.
6.15% 9/14/00 ........... A-1 P-1 35,000 35,024,560
Merrill Lynch & Co.,Inc.
6.298% 9/25/00 ........... A-1+ P-1 25,000 25,009,721
6.327% 1/12/01 ........... A-1+ P-1 35,000 35,094,138
Morgan J.P., Inc.
5.994% 3/16/01 ........... A-1+ P-1 60,000 60,000,000
Morgan Stanley Dean Witter
5.775% 5/4/00 ............ A-1 P-1 50,000 50,000,000
5.97% 3/16/01 ........... A-1 P-1 55,000 55,000,000
Societe Generale
6.054% 1/19/01 ........... A-1+ P-1 45,000 44,978,575
West Deustsche Landesbank Girozentrale
6.045% 2/26/01 ........... A-1+ P-1 55,000 54,975,589
--------------
TOTAL FLOATING RATE - NOTE (Amortized Cost $1,071,094,131) . 1,071,094,131
--------------
CERTIFICATE OF DEPOSIT - 0.9%
Bank of America
5.88% 4/5/00 ............ A-1 P-1 10,000 9,999,961
Bank One Corp.
6.18% 6/23/00 ........... A-1 P-1 50,000 50,000,000
--------------
TOTAL CERTIFICATE OF DEPOSIT (Amortized Cost $59,999,961) .. 59,999,961
--------------
EURO TIME DEPOSITS - 6.8%
Bank of Scotland
5.97% 4/11/00 ........... A-1+ P-1 30,000 30,000,000
West Deustsche Landesbank Girozentrale
5.97% 4/7/00 ............ A-1+ P-1 40,000 40,000,000
6.125% 6/28/00 ........... A-1+ P-1 75,000 75,000,000
6.32% 8/24/00 ........... A-1+ P-1 40,000 40,000,000
10
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
Rating(a) Par
------------
Prime Series S&P Moody's (000) Value
--------------------------------------------------------------------------------
EURO TIME DEPOSITS - (CONTINUED)
Bayerische Landesbank Girozentrale
5.97% 4/14/00 ........... A-1+ P-1 $ 50,000 $ 50,000,000
6.25% 7/3/00 ............ A-1+ P-1 50,000 50,000,000
6.17% 7/18/00 ........... A-1+ P-1 25,000 25,000,000
6.20% 7/24/00 ........... A-1+ P-1 30,000 30,000,000
6.38% 9/21/00 ........... A-1+ P-1 35,000 35,000,000
Norddeutsche Landesbank Girozentrale
5.98% 4/7/00 ............ A-1+ P-1 40,000 40,000,000
6.28% 8/3/00 ............ A-1+ P-1 30,000 30,000,000
--------------
TOTAL EURO TIME DEPOSITS (Amortized Cost $445,000,000) ..... 445,000,000
--------------
FNMA - 0.1%
Federal National Mortgage Association
6.35% 2/2/01 ............ A-1+ P-1 5,000 4,995,554
--------------
TOTAL FNMA (Amortized Cost $4,995,554) ..................... 4,995,554
--------------
EURODOLLAR CERTIFICATES OF DEPOSIT - 3.2%
Bank of Scotland
5.95% 4/12/00 ........... A-1+ P-1 30,000 29,999,992
Bayerische Landesbank Girozentrale
5.97% 5/8/00 ............ A-1+ P-1 10,000 9,999,112
5.955% 4/18/00 ........... A-1+ P-1 50,000 50,000,116
Credit Agricole Indosuez
6.15% 7/21/00 ........... A-1+ P-1 40,000 40,000,599
Internationale Nederlanden Bank
6.26% 8/3/00 ............ A-1+ P-1 30,000 30,000,000
Societe Generale
6.07% 4/28/00 ........... A-1+ P-1 50,000 50,000,000
--------------
TOTAL EURODOLLAR CERTIFICATES OF DEPOSIT
(Amortized Cost $209,999,819) ............................ 209,999,819
--------------
YANKEE CERTIFICATES OF DEPOSIT - 4.0%
Bank of Austria
6.55% 2/1/01 ............ A-1+ P-1 10,000 9,996,018
Bank of Nova Scotia
6.743% 2/16/01 ........... A-1 P-1 20,000 19,990,409
Paribas SA
5.98% 4/7/00 ............ A-1 P-1 10,000 10,000,034
5.98% 4/10/00 ........... A-1 P-1 25,000 25,000,031
6.70% 2/20/01 ........... A-1 P-1 20,000 19,991,553
Bayerische Landesbank Girozentrale
6.14% 5/16/00 ........... A-1+ P-1 70,000 70,000,000
11
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS (CONCLUDED) MARCH 31, 2000
Rating(a) Par
------------
Prime Series S&P Moody's (000) Value
--------------------------------------------------------------------------------
YANKEE CERTIFICATES OF DEPOSIT - (CONTINUED)
Bayerishe Hypotheka Vereinsbank
6.77% 2/22/01 ........... A-1 P-1 $42,000 $ 41,982,161
Commerz Bank
6.70% 2/20/01 ........... A-1+ P-1 15,000 14,993,665
Svenska Handelsbanken Inc.
6.77% 3/21/01 ........... A-1 P-1 25,000 24,990,800
West Deustsche Landesbank Girozentrale
6.03% 5/16/00 ........... A-1+ P-1 25,000 25,000,000
--------------
TOTAL YANKEE CERTIFICATES OF DEPOSIT
(Amortized Cost $261,944,671) ............................ 261,944,671
--------------
TOTAL INVESTMENTS--101.0%
(Amortized Cost $6,570,702,498)c ........................... $6,570,702,498
LIABILITIES IN EXCESS OF OTHER ASSETS--(1.0)% (65,841,249)
--------------
NET ASSETS--100.0% ............................................ $6,504,861,249
==============
Net Asset Value, Offering and Redemption Price Per:
Prime Share
($5,772,616,045 / 5,772,511,318 shares outstanding) ..... $1.00
Flag Investors Class A Share =====
($16,214,395 / 16,213,799 shares outstanding) ........... $1.00
Flag Investors Class B Share =====
($2,979,619 / 2,979,496 shares outstanding) ............. $1.00
Flag Investors Class C Share =====
($778,515 / 778,515 shares outstanding) ................. $1.00
Institutional Prime Share =====
($637,767,262 / 637,758,133 shares outstanding) ......... $1.00
Quality Cash Reserve Prime Share =====
($74,505,413 / 74,498,534 shares outstanding) ........... $1.00
----------
(a) Unaudited.
(b) 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.
(c) Aggregate cost for financial reporting and federal tax purposes.
MOODY'S RATINGS:
P-1 Commercial paper bearing this designation is of the best quality.
S&P RATINGS:
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.
12
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the
Year Ended
Prime Series March 31,
--------------------------------------------------------------------------------
2000
INVESTMENT INCOME:
Interest income ............................................ $263,490,701
EXPENSES:
Investment advisory fees ................................... 12,216,487
Distribution fees
Deutsche Banc Alex. Brown Cash Reserve Prime Shares ...... 10,408,188
Flag Investors Class A Shares ............................ 37,421
Flag Investors Class B Shares ............................ 35,959
Quality Cash Reserve Shares .............................. 456,848
Transfer agent fees ........................................ 2,607,854
Shareholder service fees ................................... 2,106,168
Registration fees .......................................... 1,200,491
Custodian fees ............................................. 396,407
Accounting fees ............................................ 176,115
Professional fees .......................................... 161,705
Directors' fees ............................................ 168,828
Miscellaneous .............................................. 268,398
-------------
Total expenses .................................... 30,240,869
-------------
Net investment income ......................................... 233,249,832
-------------
Net realized gain from security transactions .................. 23,373
-------------
Net increase in net assets resulting from operations .......... $233,273,205
=============
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
Prime Series For the Years Ended March 31,
--------------------------------------------------------------------------------
2000 1999
Increase (Decrease) in Net Assets
Operations:
Net investment income ................... $ 233,249,832 $ 178,689,887
Net realized gain from security
transactions .......................... 23,373 88,481
-------------- --------------
Net increase in net assets resulting
from operations ....................... 233,273,205 178,778,368
-------------- --------------
Distributions to Shareholders From:
Net investment income:
Deutsche Banc Alex. Brown Cash Reserve
Prime Shares ........................ (204,114,790) (151,410,202)
Deutsche Banc Alex. Brown Cash Reserve
Prime Institutional Shares .......... (24,839,929) (16,058,016)
Flag Investors Class A Shares ......... (729,448) (435,677)
Flag Investors Class B Shares ......... (154,996) (72,373)
Flag Investors Class C Shares ......... (2,633) --
Quality Cash Reserve Shares ........... (3,408,016) (10,713,744)
-------------- --------------
Total distributions ................... (233,249,812) (178,690,012)
-------------- --------------
Capital Share Transactions, net ............ 2,291,071,504 496,268,896
-------------- --------------
Total increase in net assets ............ 2,291,094,897 496,357,252
Net Assets:
Beginning of year ....................... 4,213,766,352 3,717,409,100
-------------- --------------
End of year ............................. $6,504,861,249 $4,213,766,352
============== ==============
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
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<PAGE>
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--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- FLAG INVESTORS CLASS A SHARES
(FOR SHARES OUTSTANDING THROUGHOUT EACH PERIOD)
For the
Year Ended
March 31,
--------------------------------------------------------------------------------
2000
Per Share Operating Performance:
Net asset value at beginning of year ................. $ 1.00
-----------
Income from Investment Operations:
Net investment income ................................ 0.0483
Less Distributions:
Dividends from net investment income ................. (0.0483)
-----------
Net asset value at end of year ....................... $ 1.00
===========
Total Return:
Based on net asset value per share 4.94%
Ratios to Average Net Assets:
Expenses ............................................. 0.56%
Net investment income ................................ 3.85%
Supplemental Data:
Net assets at end of year ............................ $16,214,395
Number of shares outstanding at end of year .......... 16,213,799
16
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
----------------------------------------------------------------------------------------------------------
1999 1998 1997 1996
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value at beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- ----------- ---------- ----------
Income from Investment Operations:
Net investment income 0.0474 0.0494 0.0478 0.0524
Less Distributions:
Dividends from net investment income (0.0474) (0.0494) (0.0478) (0.0524)
--------- ----------- ---------- ----------
Net asset value at end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= =========== ========== ==========
Total Return:
Based on net asset value per share 4.85% 5.05% 4.88% 5.36%
Ratios to Average Net Assets:
Expenses 0.63% 0.67% 0.63% 0.60%
Net investment income 4.67% 4.94% 4.78% 5.25%
Supplemental Data:
Net assets at end of year $13,028,272 $7,736,785 $6,521,574 $5,976,831
Number of shares outstanding at end of year 13,027,769 7,736,522 6,521,310 5,976,824
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- FLAG INVESTORS CLASS B SHARES
(FOR SHARES OUTSTANDING THROUGHOUT EACH PERIOD)
For the
Year Ended
March 31,
--------------------------------------------------------------------------------
2000
Per Share Operating Performance:
Net asset value at beginning of year ........................... $ 1.00
---------
Income from Investment Operations:
Net investment income .......................................... 0.0406
Less Distributions:
Dividends from net investments income .......................... (0.0406)
---------
Net asset value at end of year ................................. $ 1.00
=========
Total Return:
Based on net asset value per share ............................. 4.14%
Ratios to Average Net Assets:
Expenses ....................................................... 1.24%
Net investment income .......................................... 1.95%
Supplemental Data:
Net assets at end of year ...................................... $2,979,619
Number of shares outstanding at end of year .................... 2,979,496
---------
(1) Commencement of operations.
(2) Annualized.
18
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Period
April 3, 19951
For the Years Ended March 31, through March 31,
----------------------------------------------------------------------------------------------------------------
1999 1998 1997 1996
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value at beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- ---------
Income from Investment Operations:
Net investment income 0.0400 0.0418 0.0414 0.0361
Less Distributions:
Dividends from net investments income (0.0400) (0.0418) (0.0414) (0.0361)
--------- -------- -------- ---------
Net asset value at end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== =========
Total Return:
BASED ON NET ASSET VALUE PER SHARE 4.07% 4.27% 4.22% 3.69%
Ratios to Average Net Assets:
Expenses 1.37% 1.42% 1.38% 1.38%(2)
Net investment income 3.92% 4.18% 4.14% 4.30%(2)
Supplemental Data:
Net assets at end of year $2,355,863 $184,382 $227,098 $10,200
Number of shares outstanding at end of year 2,355,780 184,382 227,098 10,200
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- FLAG INVESTORS CLASS C SHARES
For the Period
Jan. 17, 200(1)
to March 31,
--------------------------------------------------------------------------------
2000
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00
--------
Income from Investment Operations:
Net investment income 0.0115
Less Distributions:
Dividends from net investment income (0.0115)
--------
Net asset value at end of period $ 1.00
========
Total Return:
Based on net asset value per share 1.15%
Ratios to Average Net Assets:
EXPENSES 4.40%(2)
Net investment income 67.08%(2)
Supplemental Data:
Net assets at end of period $778,515
Number of shares outstanding at end of period 778,515
--------
(1) Commencement of Operations.
(2) Annualized.
20
<PAGE>
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<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -- Significant Accounting Policies
Deutsche Banc Alex. Brown Cash Reserve Fund, Inc. ("the Fund") began
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 six classes:
Deutsche Banc 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"), Flag Investors Cash Reserve Prime Shares Class C ("Flag Investors
Class C Shares"), Quality Cash Reserve Prime Shares ("Quality Cash Shares") and
Deutsche Banc Alex. Brown Cash Reserve Prime Institutional Shares ("Prime
Institutional Shares"). Shareholders can vote only on issues that affect the
share classes they own. These financial statements present the Prime Series.
Information about the Treasury and Tax Free Series is contained in a separate
report to their shareholders. Please call 1-800-767-FLAG to receive this report.
When preparing the Fund's financial statements, management makes estimates
and assumptions to comply with accounting principles generally accepted in the
United States. 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 initially values a security at its purchased cost. The Fund then
values the investment at amortized cost assuming a constant amortization to
maturity of any discount or premium.
22
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
NOTE 1-- concluded
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.
C. FEDERAL INCOME TAXES--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.
The Fund determines its distributions according to income tax
regulations, which may be different from accounting principles generally
accepted in the UnitedStates. 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.
D. SECURITY TRANSACTIONS, INVESTMENT INCOME, 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 amortization of premiums and
accretion of discounts. 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 classes' 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.
23
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2-- Investment Advisory Fee, Transactions with Affiliates and Other Fees
Investment Company Capital Corp. ("ICCC"), a subsidiary of Deutsche Bank
AG, is the investment advisor for all series. Under the terms of the investment
advisory agreement, the Fund pays ICCC 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.
ICCC also provides accounting services to the Fund. As compensation for
these services, the Prime Series pays ICCC an annual fee that is calculated
daily and paid monthly from its average daily net assets. The Prime Series paid
$176,115, for accounting services for the year ended March 31, 2000.
ICCC also provides transfer agency services to the Fund. As compensation
for its transfer agent services, the Prime series pays ICCC a per account fee
that is calculated and paid monthly. The Prime Series paid $2,607,854 to ICCC
for transfer agent services for the year ended March 31, 2000.
ICC Distributors, Inc., ("ICC Distributors"), provides distribution
services to the Fund. As compensation for these services, the Prime Shares and
Flag Investors Class A Shares pay ICC Distributors an annual fee equal to 0.25%
of these classes' average daily net assets. For the year ended March 31, 2000,
distribution fees aggregated $10,408,188 and $37,421, for distribution services
for the Prime Shares and Flag Investors Class A Shares, respectively. The
Quality Cash Shares, Flag Investors Class B Shares and Flag Investors Class C
Shares also pay ICC Distributors an annual fee for distribution services.This
fee is equal to 0.60% of the Quality Cash Shares' aggregate average daily net
assets or $456,848 for the year ended March 31, 2000 and 1.00% (includes a 0.25%
shareholder servicing fee) of the Flag Investors Class B and Class C Shares'
aggregate average daily net assets or $35,959 and a non-meaningful amount,
respectively, for the year ended March 31, 2000.
Effective January 1, 1999, the Fund has adopted a Shareholder Service Plan
(the "Plan") for the Deutsche Banc Alex. Brown Cash Reserve Shares of the Prime
Series of the Fund ("Shares") in order to provide compensation to third parties
who provide shareholder services to 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.
24
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
Note 2 -- concluded
ICCC and ICC Distributors may voluntarily waive a portion of their advisory
or distribution fees for the Prime Series to preserve or enhance performance.
These voluntary waivers are not contractual and could change. ICCC did not waive
any advisory fees for the year ended March 31, 2000. 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 from
January 1, 1999 through March 31, 2000.
The Fund's complex offers a retirement plan for eligible Directors. The
actuarially computed pension expense/(credit) allocated to the Fund for the year
ended March 31, 2000 was $(49,685) for the Prime Series. The accrued liability
at March 31, 2000 was $194,571 for the Prime Series.
25
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3 -- Capital Stock and Share Information
The Fund is authorized to issue up to 12.81 billion shares of $.001 par
value capital stock (8.66 billion Prime Series, 1.55 billion Treasury Series,
2.25 billion Tax-Free Series and 350 million undesignated). Transactions in
shares of the Prime Series were as follows:
For the For the
Year Ended Year Ended
March 31, March 31,
2000 1999
-------------- --------------
PRIME SERIES:
SOLD:
Prime Shares 35,722,744,712 21,238,313,843
Flag Investors Class A Shares 333,773,644 86,081,920
Flag Investors Class B Shares 10,774,115 8,010,702
Flag Investors Class C Shares 1,047,381 --
Prime Institutional Shares 8,800,227,522 5,126,320,627
Quality Cash Shares 430,807,975 1,143,097,219
ISSUED AS REINVESTMENT OF DIVIDENDS:
Prime Shares 191,935,470 143,654,045
Flag Investors Class A Shares 564,622 385,752
Flag Investors Class B Shares 131,700 55,849
Flag Investors Class C Shares 1,722 --
Prime Institutional Shares 19,239,279 12,241,514
Quality Cash Shares 3,348,365 10,243,851
REDEEMED:
Prime Shares (33,870,074,943) (20,818,590,880)
Flag Investors Class A Shares (331,152,236) (81,176,425)
Flag Investors Class B Shares (10,282,099) (5,895,153)
Flag Investors Class C Shares (270,588) --
Prime Institutional Shares (8,570,149,304) (5,068,292,918)
Quality Cash Shares (441,595,833) (1,298,381,050)
--------------- ---------------
Net increase 2,291,071,504 496,268,896
=============== ===============
26
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
Note 4 -- Net Assets
Prime
Series
--------------
Paid-in capital $6,504,742,514
Undistributed net
investment income 95,362
Undistributed net realized
gain on sales
of investments 23,373
--------------
$6,504,861,249
==============
27
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of Deutsche Banc Alex. Brown Cash Reserve Fund, Inc.
and Shareholders of the Prime Series:
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
the Prime Series (one of the portfolios constituting the Deutsche Banc Alex.
Brown Cash Reserve Shares, hereafter referred to as the "Fund") at March 31,
2000, 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 accounting principles generally accepted in the United States. 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 auditing standards generally accepted in the United States, 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, 2000 by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
May 9, 2000
28
<PAGE>
FLAG INVESTORS CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
DIRECTORS AND OFFICERS
RICHARD T. HALE
CHAIRMAN
RICHARD R.BURT
DIRECTOR
JOSEPH R. HARDIMAN
DIRECTOR
LOUIS E. LEVY
DIRECTOR
EUGENE J. MCDONALD
DIRECTOR
REBECCA W. RIMEL
DIRECTOR
TRUMAN T. SEMANS
DIRECTOR
ROBERT H. WADSWORTH
DIRECTOR
CARL W. VOGT, ESQ.
PRESIDENT
CHARLES A. RIZZO
TREASURER
AMY M. OLMERT
SECRETARY
DANIEL O. HIRSCH
ASSISTANT SECRETARY
INVESTMENT OBJECTIVE
A money market fund designed to seek as high a level of current income as is
consistent with preservation of capital and liquidity.
This report is prepared for the general information of shareholders. It is
authorized for distribution to prospective investors only when preceded or
accompanied by an effective prospectus.
For more complete information regarding any of the Flag Investors Funds,
including charges and expenses, obtain a prospectus from your investment
representative or directly from the Fund at 1-800-767-FLAG. Read it carefully
before you invest.
<PAGE>
[Flag Investors logo omitted]
BALANCED
Value Builder Fund
GROWTH
Equity Partners Fund
Emerging Growth Fund
SPECIALTY
Communications Fund
Real Estate Securities Fund
INTERNATIONAL
International Equity Fund
European Mid-Cap Fund
Japanese Equity Fund
TOP 50 STRATEGY
Top 50 World
Top 50 Europe
Top 50 Asia
Top 50 U.S.
FIXED INCOME
Total Return U.S. Treasury Fund Shares
Short-Intermediate Income Fund
TAX-FREE INCOME
Managed Municipal Fund Shares
MONEY MARKET
Cash Reserve Prime Shares
P.O. Box 515
Baltimore, Maryland 21203
800-767-FLAG
Distributed by:
ICC DISTRIBUTORS, INC.
CASHANN (5/00)
