Deutsche Banc Alex. Brown
Deutsche Banc Alex. Brown
Cash Reserve Fund, Inc.
Prime Series
Treasury Series
Tax-Free Series
Semi-Annual Report
September 30, 1999
Deutsche Bank [Logo]
<PAGE>
Fund Features
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o Daily Dividends
The Fund declares dividends daily and distributes them monthly in the form of
additional shares.
o Check Redemption Privilege
After completing an authorization form, you may redeem your shares by writing
a check (in a minimum amount of $500) on your account. You will continue to
earn dividends until your check reaches the bank for clearance.
o No Sales Charge and Immediate Liquidity
You may buy or redeem shares in your account at any time. There is no sales
charge or penalty imposed by the Fund for the purchase or redemption of
shares (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.
<PAGE>
Letter to Shareholders
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We are pleased to report on the progress of your Fund for the six months
ended September 30, 1999. At the end of the period, the Fund's net assets
totaled $6,445,145,668, an increase of more than 20% from September 30, 1998.
The distribution of the Fund's assets among its three series is illustrated in
the following pie chart.
[This was represented
by a pie chart in the printed
material.]
$753.6 million Prime Series
$1.2 billion Treasury Series
$4.5 billion Tax-Free Series
With the acquisition of BT Alex. Brown by Deutsche Bank, the name of your
Fund has changed to the Deutsche Banc Alex. Brown Cash Reserve Fund. However,
the Fund's investment objective, policies, and strategies, as well as its
portfolio managers, remain the same.
MARKET ACTIVITY
During this semi-annual period, money market participants shifted their
focus away from the overseas crises that dominated the Fund's last fiscal year
to the ongoing strength of the U.S. economy. U.S. GDP growth was in excess of
2.5%-3%, and, except for certain commodities such as oil and gold, inflation
overall remained benign. In fact, the core Consumer Price Index increased only
1.9% on an annual basis through the end of August 1999, the lowest twelve month
rate of change in 33 years.
Even with the strong economy/low inflation scenario, the Federal Reserve
Board chose to focus on economic statistics such as strong retail sales and a
robust labor market as potential catalysts for future inflation. The Federal
Reserve Board did not officially move interest rates at their May meeting, but
it did adopt a policy bias tilted toward higher rates. Market expectations of
this Fed tightening together with consumer optimism, signs of global growth, and
above-trend U.S. growth combined to push short-term yields dramatically higher
in both the taxable and tax-exempt money markets. Finally, and as generally
expected, the Federal Reserve Board voted to raise the fed funds rate by 0.25%
to 5.0% on June 30th and to 5.25% on August 24th.
INVESTMENT REVIEW
We continue to manage the Fund conservatively, maintaining high portfolio
quality, adjusting weighted average maturities in response to market conditions,
1
<PAGE>
Letter to Shareholders (continued)
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Historical Yield Chart
(For the six months ended September 30, 1999)
[This was represented
by a line graph in the printed
material.]
2.78% Prime Series
4.23% Treasury Series
4.81% Tax-Free Series
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.
Performance Comparisons
(for the 7-day current yield at September 30, 1999)
-------------------------------------------------------------------
Deutsche Banc Alex. Brown Cash Reserve Fund Prime Series 4.76%
First Tier Retail Money Fund Average 4.65%
-------------------------------------------------------------------
Deutsche Banc Alex. Brown Cash Reserve Fund Treasury Series 4.12%
Treasury Retail Money Fund Average 4.24%
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Deutsche Banc Alex. Brown Cash Reserve Fund Tax-Free Series 3.00%
National Retail Tax-Free Money Fund Average 3.01%
Source: IBC's Money Fund Vision
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.
2
<PAGE>
Letter to Shareholders (continued)
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Prime Series
Our strategy in this Series continued to be concentrated on investing in
high quality issues. As of September 30, 1999, 91.8% of the Series was invested
in U.S. commercial paper, 4.2% in corporate floating rate securities, 3.4% in
U.S. certificates of deposit, 0.3% in U.S. corporate notes/bonds, 0.2% in
government agency securities, and 0.1% in repurchase agreements. For most of the
semi-annual period, we maintained a relatively neutral to the benchmark maturity
position. At September 30, 1999, the Series' weighted average maturity stood at
45 days.
Treasury Series
For most of the semi-annual period, we maintained a fairly neutral to the
benchmark maturity position, with the portfolio's weighted average maturity on
September 30, 1999 at 53 days. We were challenged by but also sought to take
advantage of a strong technical condition in the short-term Treasury market that
has existed for quite some time. This technical condition can be attributed both
to the cutback in the overall issuance by the U.S. Treasury and to investors'
decision to remain on the sidelines in an effort to avoid volatile stock and
bond markets. At the end of the semi-annual period, approximately 65.2% of the
portfolio was invested in short-term Treasury bills and 34.8% in short-term
Treasury notes.
Tax-Free Series
We adjusted the weighted average maturity within a range of 38 to 46 days
in this Series, a neutral to slightly short positioning, impacted as much by
annual seasonal phenomena within the tax-free sector as by Federal Reserve Board
policy. 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 and commercial paper holdings. In May and June, the Fund moved
from a short to neutral maturity position to offset some of the pressures on
fixed rate paper associated with the beginning of annual note season for many
municipalities. Note issuance was lower than in previous years, reflecting
excess cash flow generated from a strong economic environment.
In July, large seasonal cash inflows, due to principal and interest
payments, increased demand for money market eligible paper. Supply continued to
decrease. These factors put pressures on variable rate demand notes, resulting
in a 0.30% drop in yields. By month end, we shortened the Fund's weighted
average maturity in anticipation of the second tightening by the Federal Reserve
Board. During August, the state of Texas issued $3.9 billion in attractively
priced one-year cash flow notes, an increase of $1.8 billion from the previous
year. Due
3
<PAGE>
Letter to Shareholders (continued)
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to the Fund's shortening strategy in July, the Fund was able to participate in
the deal, while moving the portfolio's maturity only to a neutral position.
These Texas notes proved to be a positive purchase for the Fund. While waiting
to see what the Federal Reserve Board's next move may or may not be, we kept the
Fund's weighted average maturity reasonably neutral throughout September.
At the end of the semi-annual period, 63.61% of the Series was invested in
municipal variable rate demand notes, 17.70% in municipal commercial paper,
13.85% in municipal bonds, 2.78% in municipal put bonds, and 2.06% in municipal
notes. While supply of tax-free securities continued to decrease over the
semi-annual period, the Fund was able to maintain its high quality portfolio. As
measured by Standard & Poor's, upgrades outpaced downgrades in the municipal
market for 16 straight quarters, as of September 30, 1999.
LOOKING AHEAD
We believe that the Federal Reserve Board will likely pause for the near
term while it assesses the results of its two previous tightenings and
vigilantly monitors future economic data for signs of future inflation.
Unemployment and the strength of the U.S. dollar become key factors in the Fed's
determinations. If the Federal Reserve Board tightens monetary policy once more,
it will probably be in November 1999. Early in the year 2000, the rate of U.S.
economic growth may slow enough for interest rates to reverse course and begin
drifting downward.
For the Prime Series, then, our strategy going forward is to continue to
slowly extend the portfolio's maturities into next year to take advantage of the
present steep yield curve caused by issuers aggressively extending their
liabilities to avoid any potential Y2K problems. We believe this strategy will
also allow us to maintain competitive yields, take advantage of any potential
rate hikes, and retain the liquidity needed for anticipated year-end
redemptions. In the Treasury Series, we may have an opportunity to extend the
portfolio's maturity once investor confidence in the stock and bond markets
returns. In the Tax-Free Series, our strategy for the near term is to maintain a
high degree of liquidity by somewhat increasing the portfolio's allocation to
daily demand notes and to make sure that we neither hold nor purchase any
securities that have January 1, 2000 maturity dates. 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.
4
<PAGE>
Letter to Shareholders (concluded)
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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 M. Rasel /s/ Susan Fare
Darlene M. Rasel Susan Fare
Portfolio Manager of the Portfolio Manager of the
Prime and Treasury Series Tax-Free Series
5
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
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Statement of Net Assets September 30, 1999
(Unaudited)
Rating
------------- Par
PRIME SERIES S&P Moody's (000) Value
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COMMERCIAL PAPER - 91.8%a
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Automobiles & Trucks - 8.3%
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Ford Motor Credit Co.
5.56% 10/1/99 .......... A-1 P-1 $60,000 $60,000,000
5.29% 10/22/99 ......... A-1 P-1 40,000 39,876,567
5.28% 11/17/99 ......... A-1 P-1 30,000 29,793,200
PACCAR Financial Corp.
5.28% 10/20/99 ......... A-1+ P-1 28,000 27,921,973
5.11% 10/21/99 ......... A-1+ P-1 18,350 18,297,751
5.11% 10/22/99 ......... A-1+ P-1 25,000 24,925,479
5.30% 10/26/99 ......... A-1+ P-1 10,000 9,963,194
5.29% 10/28/99 ......... A-1+ P-1 10,000 9,960,325
5.30% 11/12/99 ......... A-1+ P-1 5,000 4,969,083
5.31% 11/24/99 ......... A-1+ P-1 26,240 26,030,998
5.31% 12/3/99 .......... A-1+ P-1 10,000 9,907,075
5.32% 12/20/99 ......... A-1+ P-1 10,000 9,881,778
5.16% 2/2/00 ........... A-1+ P-1 25,000 24,538,789
Toyota Motor Credit Corp.
5.21% 10/18/99 ......... A-1+ P-1 15,000 14,963,096
5.28% 10/26/99 ......... A-1+ P-1 8,755 8,722,898
5.27% 11/23/99 ......... A-1+ P-1 60,000 59,534,483
-------------
379,286,689
-------------
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Bank Holding Companies - 2.2%
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Wachovia Bank
4.93% 2/7/00 ........... A-1+ P-1 30,000 29,470,025
5.18% 2/15/00 .......... A-1+ P-1 15,000 14,704,308
Wells Fargo & Co.
5.75% 2/22/00 .......... A-1 P-1 30,000 29,310,000
5.77% 2/29/00 .......... A-1 P-1 25,000 24,394,951
-------------
97,879,284
-------------
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Beverages - Soft Drinks - 2.4%
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Coca Cola Co.
5.26% 10/8/99 .......... A-1+ P-1 50,000 49,948,861
5.27% 11/22/99 ......... A-1+ P-1 50,000 49,619,389
5.27% 1/20/00 .......... A-1+ P-1 10,000 9,837,508
-------------
109,405,758
-------------
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Chemicals - 3.7%
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E.I. duPont de Nemours and Co.
5.11% 10/18/99 ......... A-1+ P-1 30,685 30,610,955
5.27% 10/19/99 ......... A-1+ P-1 30,000 29,920,950
5.27% 11/22/99 ......... A-1+ P-1 60,000 59,543,267
5.27% 12/2/99 .......... A-1+ P-1 50,000 49,546,194
-------------
169,621,366
-------------
6
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating
------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
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COMMERCIAL PAPER (continued)
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Computers - Equipment - 2.8%
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Hewlett-Packard Co.
5.30% 10/8/99 .......... A-1+ P-1 $10,000 $ 9,989,694
5.29% 11/1/99 .......... A-1+ P-1 50,000 49,772,236
5.30% 11/24/99 ......... A-1+ P-1 40,000 39,682,000
Xerox Credit Corp.
5.29% 11/10/99 ......... A-1 P-1 30,000 29,823,667
-------------
129,267,597
-------------
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Electrical and Electronics - 3.2%
- -------------------------------------------------------------------
Emerson Electric Co.
5.27% 1/31/00 .......... A-1+ P-1 25,000 24,553,514
5.32% 2/4/00 ........... A-1+ P-1 35,000 34,348,300
Motorola Credit Corp.
5.25% 10/14/99 ......... A-1 P-1 33,600 33,536,300
5.31% 11/19/99 ......... A-1 P-1 23,000 22,833,767
Vermont American Co.
5.63% 2/9/00 ........... A-1+ P-1 30,000 29,385,392
-------------
144,657,273
-------------
- -------------------------------------------------------------------
Entertainment - 0.7%
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The Walt Disney Co.
4.82% 10/7/99 .......... A-1 P-1 6,735 6,729,590
4.83% 11/10/99 ......... A-1 P-1 2,450 2,436,852
5.27% 2/2/00 ........... A-1 P-1 22,315 21,909,313
-------------
31,075,755
-------------
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Finance - Consumer - 4.5%
- -------------------------------------------------------------------
American Express Credit Corp.
5.28% 11/10/99 ......... A-1 P-1 25,000 24,853,333
American General Finance Corp.
5.14% 10/18/99 ......... A-1 P-1 20,000 19,951,456
USAA Capital Corp.
5.13% 10/13/99 ......... A-1+ P-1 27,336 27,288,544
5.28% 10/18/99 ......... A-1+ P-1 10,000 9,975,067
5.29% 10/28/99 ......... A-1+ P-1 20,000 19,920,650
5.52% 2/9/00 ........... A-1+ P-1 43,713 42,821,333
5.70% 2/16/00 .......... A-1+ P-1 25,000 24,453,750
5.70% 2/23/00 .......... A-1+ P-1 17,100 16,707,413
5.70% 2/24/00 .......... A-1+ P-1 18,000 17,583,900
-------------
203,555,446
-------------
7
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1999
(Unaudited)
Rating
------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
COMMERCIAL PAPER (continued)
- -------------------------------------------------------------------
Finance: Diversified - 5.3%
- -------------------------------------------------------------------
Associates Corp.
5.30% 10/7/99 .......... A-1+ P-1 $45,000 $ 44,960,250
5.27% 11/10/99 ......... A-1+ P-1 30,000 29,824,333
5.72% 2/9/00 ........... A-1+ P-1 25,000 24,479,639
Associates First Capital Corp.
5.19% 10/4/99 .......... A-1 P-1 5,000 4,997,838
General Electric Capital Corp. International Fund
5.47% 2/3/00 ........... A-1+ P-1 15,000 14,715,104
5.77% 3/8/00 ........... A-1+ P-1 25,000 24,362,896
General Electric Capital Corp.
5.12% 10/6/99 .......... A-1+ P-1 12,000 11,991,467
5.31% 10/12/99 ......... A-1+ P-1 15,000 14,975,663
5.43% 1/31/00 .......... A-1+ P-1 8,000 7,852,787
5.20% 2/2/00 ........... A-1+ P-1 20,000 19,641,778
5.36% 2/11/00 .......... A-1+ P-1 13,000 12,742,571
5.29% 2/15/00 .......... A-1+ P-1 20,000 19,597,372
5.78% 2/18/00 .......... A-1+ P-1 12,000 11,730,267
-------------
241,871,965
-------------
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Finance - Leasing - 2.0%
- -------------------------------------------------------------------
International Lease Finance Corp.
5.28% 10/14/99 ......... A-1+ P-1 30,000 29,942,800
5.28% 11/18/99 ......... A-1+ P-1 30,000 29,788,800
4.94% 2/4/00 ........... A-1+ P-1 30,000 29,481,300
-------------
89,212,900
-------------
- -------------------------------------------------------------------
Foods - 4.6%
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Campbell Soup Co.
5.20% 10/12/99 ......... A-1+ P-1 25,000 24,960,278
5.23% 10/13/99 ......... A-1+ P-1 35,000 34,938,983
5.26% 10/25/99 ......... A-1+ P-1 26,800 26,706,021
4.82% 1/18/00 .......... A-1+ P-1 22,000 21,678,934
H.J. Heinz Co.
5.33% 1/21/00 .......... A-1 P-1 25,000 24,585,444
5.34% 1/28/00 .......... A-1 P-1 17,800 17,486,290
Hershey Foods Corp.
5.23% 10/15/99 ......... A-1 P-1 28,000 27,943,051
Kellogg Co.
5.27% 11/1/99 .......... A-1+ P-1 8,400 8,361,880
5.67% 2/11/00 .......... A-1+ P-1 25,000 24,476,313
-------------
211,137,194
-------------
8
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating
------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
COMMERCIAL PAPER (continued)
- -------------------------------------------------------------------
Household Products - 3.2%
- -------------------------------------------------------------------
Procter & Gamble Co.
5.28% 10/14/99 ......... A-1+ P-1 $20,000 $ 19,961,867
5.28% 10/18/99 ......... A-1+ P-1 57,200 57,057,381
5.11% 10/29/99 ......... A-1+ P-1 16,400 16,334,819
5.28% 11/5/99 .......... A-1+ P-1 20,000 19,897,333
5.28% 11/8/99 .......... A-1+ P-1 20,000 19,888,533
5.29% 12/17/99 ......... A-1+ P-1 14,000 13,841,594
-------------
146,981,527
-------------
- -------------------------------------------------------------------
Machinery and Machine Tools - 0.3%
- -------------------------------------------------------------------
Illinois Tool Works, Inc.
5.33% 10/19/99 ......... A-1+ P-1 15,000 14,960,250
-------------
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Oil Integrated - Domestic - 3.0%
- -------------------------------------------------------------------
Mobil Corp.
5.55% 10/1/99 .......... A-1+ P-1 135,000 135,000,000
-------------
- -------------------------------------------------------------------
Oil Transportation - 0.8%
- -------------------------------------------------------------------
Colonial Pipeline Co.
5.14% 10/13/99 ......... A-1+ P-1 15,000 14,974,300
5.32% 11/17/99 ......... A-1+ P-1 12,000 11,916,653
5.34% 11/29/99 ......... A-1+ P-1 11,000 10,903,732
-------------
37,794,685
-------------
- -------------------------------------------------------------------
Paper Products - 1.5%
- -------------------------------------------------------------------
Kimberly-Clark Corp.
5.23% 10/13/99 ......... A-1+ P-1 69,500 69,378,200
-------------
- -------------------------------------------------------------------
Pharmaceutical - 6.7%
- -------------------------------------------------------------------
Abbott Laboratories
5.38% 10/7/99 .......... A-1+ P-1 45,000 44,959,688
Johnson & Johnson
4.90% 10/15/99 ......... A-1+ P-1 13,600 13,574,084
4.79% 11/1/99 .......... A-1+ P-1 12,000 11,950,503
5.17% 1/18/00 .......... A-1+ P-1 25,000 24,608,660
5.26% 2/2/00 ........... A-1+ P-1 11,000 10,800,704
Merck & Co., Inc.
5.30% 2/4/00 ........... A-1+ P-1 30,000 29,443,500
Pfizer, Inc.
5.28% 10/13/99 ......... A-1+ P-1 35,000 34,938,400
5.27% 10/14/99 ......... A-1+ P-1 25,000 24,952,424
5.27% 10/15/99 ......... A-1+ P-1 20,000 19,959,011
5.29% 11/3/99 .......... A-1+ P-1 50,000 49,757,542
5.28% 11/4/99 .......... A-1+ P-1 40,000 39,800,533
-------------
304,745,049
-------------
9
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1999
(Unaudited)
Rating
------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
COMMERCIAL PAPER (continued)
- -------------------------------------------------------------------
Property - Casualty Insurance - 1.7%
- -------------------------------------------------------------------
AIG Funding, Inc.
5.60% 10/1/99 .......... A-1+ P-1 $75,000 $ 75,000,000
-------------
- -------------------------------------------------------------------
Publishing - 3.8%
- -------------------------------------------------------------------
Gannett Co., Inc.
5.28% 10/13/99 ......... A-1+ P-1 90,000 89,841,600
5.27% 10/19/99 ......... A-1+ P-1 60,000 59,841,900
McGraw-Hill, Inc.
5.12% 10/19/99 ......... A-1 P-1 5,000 4,987,200
5.12% 10/21/99 ......... A-1 P-1 2,540 2,532,775
Times Mirror Co.
5.12% 10/19/99 ......... A-1 P-1 15,000 14,961,600
-------------
172,165,075
-------------
- -------------------------------------------------------------------
Retail - 3.6%
- -------------------------------------------------------------------
Wal-Mart Stores, Inc.
5.28% 10/4/99 .......... A-1+ P-1 50,000 49,978,000
5.28% 10/18/99 ......... A-1+ P-1 81,000 80,798,040
5.28% 10/19/99 ......... A-1+ P-1 20,000 19,947,200
5.28% 10/25/99 ......... A-1+ P-1 15,000 14,947,200
-------------
165,670,440
-------------
- -------------------------------------------------------------------
Structured Finance - 10.1%
- -------------------------------------------------------------------
Ciesco, LP.
5.31% 10/5/99 .......... A-1+ P-1 47,500 47,471,975
5.32% 10/8/99 .......... A-1+ P-1 50,000 49,948,278
5.32% 10/8/99 .......... A-1+ P-1 2,500 2,497,414
5.32% 11/4/99 .......... A-1+ P-1 6,000 5,969,853
5.32% 11/5/99 .......... A-1+ P-1 20,000 19,896,556
5.32% 11/19/99 ......... A-1+ P-1 30,000 29,782,767
Corporate Receivables Corp.
5.33% 10/6/99 .......... A-1+ P-1 25,000 24,981,493
5.17% 10/14/99 ......... A-1+ P-1 10,000 9,981,331
5.20% 10/20/99 ......... A-1+ P-1 8,000 7,978,044
5.35% 10/28/99 ......... A-1+ P-1 50,000 49,799,375
5.36% 11/3/99 .......... A-1+ P-1 10,000 9,950,867
5.37% 11/8/99 .......... A-1+ P-1 50,000 49,716,583
5.36% 11/15/99 ......... A-1+ P-1 10,000 9,933,000
10
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating
------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
COMMERCIAL PAPER (continued)
- -------------------------------------------------------------------
Structured Finance (concluded)
- -------------------------------------------------------------------
Corporate Asset Funding Co., Inc.
5.32% 10/1/99 .......... A-1+ P-1 $ 30,000 $ 30,000,000
5.15% 10/5/99 .......... A-1+ P-1 30,000 29,982,833
5.33% 10/12/99 ......... A-1+ P-1 30,000 29,951,142
5.17% 10/20/99 ......... A-1+ P-1 10,000 9,972,714
5.17% 10/21/99 ......... A-1+ P-1 20,000 19,942,556
5.35% 11/15/99 ......... A-1+ P-1 10,000 9,933,125
5.36% 11/16/99 ......... A-1+ P-1 10,000 9,931,511
-------------
457,621,417
-------------
- -------------------------------------------------------------------
Telephone - 13.8%
- -------------------------------------------------------------------
Ameritech Corp.
5.57% 10/1/99 .......... A-1+ P-1 100,000 100,000,000
5.31% 10/5/99 .......... A-1+ P-1 70,000 69,958,700
AT&T Corp.
5.29% 10/27/99 ......... A-1+ P-1 96,500 96,131,316
Bell Atlantic Network Funding Corp.
5.32% 10/18/99 ......... A-1+ P-1 40,000 39,899,511
5.30% 10/21/99 ......... A-1+ P-1 45,000 44,867,500
BellSouth Capital Funding Corp.
5.23% 10/4/99 .......... A-1+ P-1 33,000 32,985,618
5.29% 11/23/99 ......... A-1+ P-1 75,000 74,418,104
BellSouth Telecommunications, Inc.
5.32% 2/7/00 ........... A-1+ P-1 50,000 49,009,208
SBC Communications, Inc.
5.29% 10/14/99 ......... A-1+ P-1 25,000 24,952,243
5.18% 10/25/99 ......... A-1+ P-1 14,500 14,449,927
5.30% 11/29/99 ......... A-1+ P-1 10,000 9,913,139
5.33% 1/20/00 .......... A-1+ P-1 50,000 49,178,292
5.70% 2/22/00 .......... A-1+ P-1 20,000 19,544,000
-------------
625,307,558
-------------
- -------------------------------------------------------------------
Utilities - 3.6%
- -------------------------------------------------------------------
National Rural Utilities CFC
5.27% 10/13/99 ......... A-1+ P-1 12,365 12,343,279
5.25% 10/18/99 ......... A-1+ P-1 4,000 3,990,083
5.30% 11/9/99 .......... A-1+ P-1 18,500 18,393,779
5.78% 1/27/00 .......... A-1+ P-1 27,860 27,332,177
5.75% 2/10/00 .......... A-1+ P-1 30,000 29,367,500
5.79% 2/17/00 .......... A-1+ P-1 8,000 7,821,153
11
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1999
(Unaudited)
Rating
------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------
COMMERCIAL PAPER (continued)
- -------------------------------------------------------------------
Utilities (concluded)
5.31% 11/10/99 ......... A-1+ P-1 $25,000 $ 24,852,500
5.30% 11/16/99 ......... A-1+ P-1 24,000 23,837,467
5.31% 11/18/99 ......... A-1+ P-1 15,000 14,893,800
-------------
162,831,738
-------------
Total Commercial Paper
(Cost $4,174,427)............................................. 4,174,427,166
-------------
- -------------------------------------------------------------------
U.S. CORPORATE NOTE/BOND - 0.3%
- -------------------------------------------------------------------
Associates Corp.
6.00% 3/15/00 .......... A-1+ P-1 12,000 12,027,012
-------------
Total U.S. Corporate Note/Bond
(Cost $12,027,012) ........................................... 12,027,012
-------------
- -------------------------------------------------------------------
FLOATING RATE - NOTE - 4.2%
- -------------------------------------------------------------------
Associates Corp.
5.26% 3/20/00 .......... A-1+ P-1 40,000 39,987,058
AT&T Corp.
5.27% 7/13/00 .......... A-1+ P-1 15,000 14,995,311
Federal Home Loan Bank
5.26% 11/9/99 .......... A-1+ P-1 25,000 24,998,168
5.31% 4/14/00 .......... A-1+ P-1 50,000 49,986,612
5.22% 5/12/00 .......... A-1+ P-1 20,000 19,989,596
5.21% 7/12/00 .......... A-1+ P-1 6,000 5,997,664
General Electric Capital Corp.
5.26% 4/12/00 .......... A-1+ P-1 25,000 25,000,000
5.39% 5/12/00 .......... A-1+ P-1 10,000 10,000,000
-------------
Total Floating Rate - Note
(Cost $190,954,409) .......................................... 190,954,409
-------------
- -------------------------------------------------------------------
CERTIFICATE OF DEPOSIT - 3.4%
- -------------------------------------------------------------------
First Chicago NBD Corp.
5.20% 10/26/99 ......... A-1 P-1 25,000 25,000,000
5.48% 1/18/00 .......... A-1 P-1 5,000 4,992,940
First Union National Bank of N.C.
4.93% 10/20/99 ......... A-1 P-1 10,000 10,000,000
Mellon Bank Corp.
5.52% 2/10/00 .......... A-1+ P-1 25,000 25,000,000
5.52% 2/11/00 .......... A-1+ P-1 25,000 25,000,000
12
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Rating
------------- Par
PRIME SERIES (continued) S&P Moody's (000) Value
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------
CERTIFICATE OF DEPOSIT (concluded)
- -------------------------------------------------------------------
NationsBank Corp.
4.93% 11/3/99 .......... A-1 P-1 $25,000 $25,000,000
4.94% 11/10/99 ......... A-1 P-1 30,000 30,000,000
4.99% 1/11/00 .......... A-1 P-1 10,000 9,987,084
-------------
Total Certificate of Deposit
(Cost $154,980,024) .......................................... 154,980,024
-------------
- -------------------------------------------------------------------
FHLB - 0.2%
- -------------------------------------------------------------------
Federal Home Loan Bank
5.16% 3/8/00 ........... A-1+ P-1 8,000 8,003,430
-------------
Total FHLB
(Cost $8,003,430) ............................................ 8,003,430
-------------
- -------------------------------------------------------------------
REPURCHASE AGREEMENTS - 0.1%(b)
- -------------------------------------------------------------------
Goldman Sachs .............. 5.15% 10/1/99(d) 4,809 4,808,763
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $4,808,763) ............................................ 4,808,763
-------------
- -------------------------------------------------------------------
TOTAL INVESTMENTS--100.0%
- -------------------------------------------------------------------
(Cost $4,545,200,804) ....................................... $4,545,200,804
- -------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--0.0% (7,840,122)
- -------------------------------------------------------------------
-------------
NET ASSETS--100.0% $4,537,360,682
-------------
-------------
Net Asset Value, Offering and Redemption Price Per:
Prime Share
($3,995,564,474 divided by 3,995,480,297 shares outstanding)...... $1.00
-----
-----
Flag Investors Class A Share
($13,118,065 divided by 13,117,559 shares outstanding)............ $1.00
-----
-----
Flag Investors Class B Share
($6,273,802 divided by 6,273,698 shares outstanding).............. $1.00
-----
-----
Institutional Prime Share
($451,946,360 divided by 451,939,552 shares outstanding).......... $1.00
-----
-----
Quality Cash Reserve Prime Share
($70,457,982 divided by 70,451,450 shares outstanding)............ $1.00
-----
-----
13
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1999
(Unaudited)
PRIME SERIES (concluded)
- --------------
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/ Dated 9/30/99 principal and interest in the amount of
$4,809,451, due 10/01/99 (Collateralized by U.S. Treasury Note, par value of
$5,128,000, coupon rate of 4.25%, due 11/15/03, value of $4,905,652.
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
14
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Par
TREASURY SERIES Date (000) Value
- -----------------------------------------------------------------------------------
- -------------------------------------------------------------------
U.S. TREASURY BILLS (a) - 65.2%
- -------------------------------------------------------------------
<S> <C> <C> <C>
4.550% .......................... 10/7/99 $ 675 $ 674,488
4.710% .......................... 10/7/99 36,650 36,621,230
4.445% .......................... 10/14/99 42,110 42,043,646
4.565% .......................... 10/14/99 1,805 1,802,025
4.620% .......................... 10/14/99 23,715 23,675,436
4.420% .......................... 10/21/99 2,100 2,094,843
4.350% .......................... 10/28/99 500 498,369
4.460% .......................... 11/4/99 80,000 79,663,022
4.540% .......................... 11/12/99 46,300 46,054,764
4.530% .......................... 11/18/99 49,395 49,098,121
4.855% .......................... 11/26/99 25,000 24,811,194
4.860% .......................... 12/2/99 50,000 49,581,500
4.810% .......................... 12/9/99 82,930 82,201,204
4.700% .......................... 12/30/99 50,000 49,412,500
--------------
Total U.S. Treasury Bills
(Cost $488,232,342) ................... 488,232,342
--------------
- -------------------------------------------------------------------
U.S. TREASURY NOTES - 34.8%
- -------------------------------------------------------------------
5.875% .......................... 11/15/99 120,000 120,148,152
7.750% .......................... 11/30/99 104,320 104,769,480
7.750% .......................... 1/31/00 10,900 10,990,611
5.875% .......................... 12/15/00 25,000 25,055,188
--------------
</TABLE>
<TABLE>
<S> <C>
Total U.S. Treasury Notes
(Cost $260,963,431) ............................................. 260,963,431
--------------
TOTAL INVESTMENTS--100.0%
(Cost $749,195,773)(b)............................................ $ 749,195,773
LIABILITIES IN EXCESS OF OTHER ASSETS--0.0% ....................... (4,449,040)
--------------
TOTAL NET ASSETS--100.0% .......................................... $ 753,644,813
--------------
--------------
Net Asset Value, Offering and Redemption Price Per:
Treasury Share
($654,942,044 O 654,847,439 shares outstanding) ............. $1.00
-----
-----
Institutional Treasury Share
($98,668,619 O 98,651,562 shares outstanding) ............... $1.00
-----
-----
</TABLE>
- --------------
(a) U.S. Treasury bills are traded on a discount basis. 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>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Rating
-------------- Par
TAX-FREE SERIES S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------
ALABAMA - 1.4%
- -------------------------------------------------------------------
Alabama Housing
Finance
Authority,
Multifamily
Housing,
Refunding RB
(Rime Village
Hoover Project),
(Guaranteed by
FNMA), Variable
Rate
Weekly Demand Note, 3.80%, 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,
3.80%,
6/15/26(a) ......................... A-1+ -- 5,800 5,800,000
-----------------
15,700,000
-----------------
- -------------------------------------------------------------------
ARIZONA - 0.7%
- -------------------------------------------------------------------
Mesa, Arizona,
Industrial
Development
Authority
Revenue,
Discovery Health
System, Series
B, (MBIA
Insured),
Variable Rate
Weekly Demand
Note,
3.80%, 1/1/29(a) ................... A-1+ VMIG-1 5,000 5,000,000
Phoenix, Arizona,
G.O., Series A
7.40%, 7/1/00 ...................... AA+ Aa1 3,500 3,598,177
-----------------
8,598,177
-----------------
- -------------------------------------------------------------------
ARKANSAS - 0.4%
- -------------------------------------------------------------------
Arkansas State
Development
Finance
Authority Health
Care Facilities,
Series B,
(Sisters of
Mercy Health),
Variable Rate
Weekly Demand
Note, 3.75%,
6/1/12(a) .......................... A-1+ VMIG-1 4,600 4,600,000
-----------------
- -------------------------------------------------------------------
COLORADO - 3.5%
- -------------------------------------------------------------------
Colorado Health
Facilities
Authority
Revenue, Series
B, (Catholic
Health
Initiatives),
Variable Rate
Weekly
Demand Note, 3.85%, 12/1/25(a) ..... A-1+ VMIG-1 12,900 12,900,000
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
COLORADO - (continued)
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
Colorado Housing
Finance
Authority,
Multifamily
Housing,
(Greenwood
Project),
(Guaranteed by
FNMA),
Variable Rate
Weekly Demand
Note,
3.85%, 10/15/16(a) ................. A-1+ -- $ 1,300 $ 1,300,000
Colorado Housing
Finance
Authority,
Multifamily
Housing,
(Huntington
Project),
(Guaranteed by
FNMA),
Variable Rate
Weekly Demand
Note,
3.85%, 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,
3.85%,
10/15/16(a) ........................ A-1+ -- 9,000 9,000,000
Colorado Housing
Finance
Authority,
Multifamily
Housing, (Silver
Reef
Project),
(Guaranteed by
FNMA),
Variable Rate
Weekly Demand
Note,
3.85%, 10/15/16(a) ................ A-1+ -- 9,490 9,490,000
Colorado Housing
Finance
Authority,
Multifamily
Housing, (St.
Moritz
Project),
(Guaranteed by
FNMA),
Variable Rate
Weekly Demand
Note,
3.85%, 10/15/16(a) ................. A-1+ -- 4,900 4,900,000
-----------------
39,990,000
-----------------
- -------------------------------------------------------------------
DELAWARE - 0.7%
- -------------------------------------------------------------------
Delaware State,
G.O., Series A,
4.60%, 3/1/00 ...................... AA+ Aa1 4,255 4,280,237
Delaware State,
G.O., Series A,
5.00%, 5/1/00 ...................... AA+ Aa1 1,000 1,010,121
Delaware State,
G.O., Series A,
5.00%, 7/1/00 ...................... AA+ Aa1 2,500 2,522,744
-----------------
7,813,102
-----------------
- -------------------------------------------------------------------
FLORIDA - 2.1%
- -------------------------------------------------------------------
Florida State
Municipal Power
Agency Revenue,
(Stanton II
Project), (AMBAC
Insured),
Variable Rate
Weekly
Demand Note, 3.75%, 10/1/27(a) ..... A-1 Aaa 5,000 5,000,000
</TABLE>
17
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
FLORIDA - (continued)
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sunshine State,
Local
Government,
Financing
Commission,
(AMBAC Insured),
Adj. Rate
Revenue Bonds,
Tax Exempt
Commercial Paper
Mode,
3.35%, 10/8/99 .................... -- VMIG-1 $ 7,000 $ 7,000,000
Sunshine State,
Local
Government,
Financing
Commission,
(AMBAC Insured),
Adj. Rate
Revenue Bonds,
Tax Exempt
Commercial Paper
Mode,
3.30%, 10/15/99 ................... -- VMIG-1 5,000 5,000,000
Sunshine State,
Local
Government,
Financing
Commission,
(AMBAC Insured),
Adj. Rate
Revenue Bonds,
Tax Exempt
Commercial Paper
Mode,
3.40%, 10/20/99 ................... -- VMIG-1 3,000 3,000,000
Sunshine State,
Local
Government,
Financing
Commission,
(AMBAC Insured),
Adj. Rate
Revenue Bonds,
Tax Exempt
Commercial Paper
Mode,
3.30%, 11/8/99 .................... -- VMIG-1 2,500 2,500,000
Tampa Health
Facilities
Authority RB,
(Lifelink
Foundation Inc.
Project), (LOC:
SunTrust Bank),
Variable Rate
Weekly Demand Note, 3.80%, 8/1/22(a) -- Aa3 1,500 1,500,000
-----------------
24,000,000
-----------------
- -------------------------------------------------------------------
GEORGIA - 7.0%
- -------------------------------------------------------------------
Burke County,
Georgia,
Development
Authority,
(Oglethorpe
Power), (AMBAC
Insured), Tax
Exempt
Commercial Paper, 3.20%, 10/12/99 . A-1+ VMIG-1 5,000 5,000,000
Cobb County,
Georgia, Housing
Authority, (Post
Mill Project),
(Guaranteed by
FNMA), Variable
Rate Weekly
Demand
Note, 3.80%, 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, 3.80%, 11/1/17(a) .... -- Aa3 3,600 3,600,000
De Kalb County,
Georgia, Housing
Authority,
Multifamily
Housing, (Camden
Brook Project),
(Guaranteed by
FNMA), Variable
Rate Weekly
Demand
Note, 3.80%, 6/15/25(a) ........... A-1+ -- 5,400 5,400,000
</TABLE>
18
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
GEORGIA - (continued)
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
De Kalb County,
Georgia, Housing
Authority,
Multifamily
Housing,
(Clairmont Crest
Project),
(Guaranteed by
FNMA), Variable
Rate Weekly
Demand
Note, 3.80%, 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, 3.80%, 6/1/25(a) ............ A-1+ -- 7,895 7,895,000
Fulco, Georgia,
Hospital
Authority,
(Piedmont
Hospital
Project), (LOC:
SunTrust Bank),
Variable Rate
Weekly
Demand Note, 3.75%, 3/1/24(a) ...... A-1+ VMIG-1 3,000 3,000,000
Fulton County,
Georgia,
Development
Authority
Revenue (Georgia
Tech Athletic
Association
Project), (LOC:
SunTrust Bank),
Variable Rate
Weekly
Demand Note, 3.80%, 7/1/14(a) ..... -- Aa3 8,050 8,050,000
Georgia State,
G.O., Series A
5.50%, 3/1/00 ..................... AAA Aaa 1,000 1,009,143
Macon-Bibb County,
Georgia,
Hospital
Authority
Revenue,
(Medical Center
of Central
Georgia), (LOC:
SunTrust Bank),
Variable Rate
Weekly Demand
Note, 3.80%, 8/1/18(a) ............ -- Aa3 2,800 2,800,000
Macon-Bibb County,
Georgia,
Hospital
Authority
Revenue,
(Medical Center
of Central
Georgia), (LOC:
SunTrust Bank),
Variable Rate
Weekly Demand
Note, 3.80%, 12/1/18(a) ........... A-1+ Aa3 5,000 5,000,000
Municipal Electric
Authority,
Georgia, (LOC:
ABN AMRO Bank
N.V.), Variable
Rate Weekly
Demand Note,
3.75%, 3/1/20(a) .................. A-1+ VMIG-1 4,000 4,000,000
Municipal Electric
Authority,
Georgia, (LOC:
ABN AMRO Bank
N.V.),
Variable Rate
Weekly Demand
Note,
3.80%, 1/1/26(a) .................. A-1+ VMIG-1 4,700 4,700,000
Roswell Housing
Authority,
Multifamily
Housing, (Post
Canyon Project),
(Guaranteed by
FNMA), Variable
Rate
Weekly Demand Note, 3.80%, 6/1/25(a) . A-1+ -- 5,500 5,500,000
</TABLE>
19
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
GEORGIA - (continued)
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
Smyrna Housing
Authority,
Multifamily
Housing, (F&M
Villages
Project),
(Guaranteed by
FNMA), Variable
Rate
Weekly Demand Note, 3.80%, 6/6/25(a) . A-1+ -- $13,700 $ 13,700,000
-------------
80,434,143
-------------
- -------------------------------------------------------------------
ILLINOIS - 9.9%
- -------------------------------------------------------------------
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 1,001,832
Chicago, Illinois,
Metro. Water
Reclamation
District, G.O., 4.70%, 12/1/99 .... AA Aa2 1,500 1,503,936
Illinois
Development
Finance
Authority,
(Chicago
Symphony
Orchestra),
(LOC: Northern
Trust) Variable
Rate Weekly
Demand Note, 3.70%, 12/1/28a ...... A-1+ VMIG-1 11,300 11,300,000
Illinois
Development
Finance
Authority,
(Fenwick High
School Project),
(LOC: Northern
Trust) Variable
Rate Weekly
Demand Note, 3.80%, 3/1/32(a) ..... A-1+ -- 8,200 8,200,000
Illinois
Development
Finance
Authority,
(Provena
Health), Series
B, (MBIA
Insured),
Variable Rate
Daily Demand
Note, 3.95%, 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, 3.75%, 5/1/28(a) ............ A-1+ VMIG-1 5,350 5,350,000
Illinois
Development
Finance
Authority,
P.C.R.,
(Commonwealth
Edison Company
Project), Series
C, (LOC: ABN
AMRO Bank N.V.),
Variable Rate
Weekly Demand Note, 3.75%, 3/1/09(a) A-1+ P-1 12,700 12,700,000
Illinois
Development
Finance
Authority,
P.C.R.,
(Illinois Power
Company
Project), Series
A, (LOC: ABN
AMRO Bank N.V.),
Variable Rate
Weekly
Demand Note, 3.80%, 11/1/28(a) .... A-1+ VMIG-1 4,500 4,500,000
Illinois
Development
Finance
Authority,
P.C.R.,
(Illinois Power
Company
Project), Series
B, (LOC: ABN
AMRO Bank N.V.),
Variable Rate
Weekly
Demand Note, 3.77%, 11/1/28(a) .... A-1+ VMIG-1 4,600 4,600,000
</TABLE>
20
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
ILLINOIS - (continued)
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
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), Series
A, 3.55%,
7/31/00
Mandatory
Put - 07/31/00 @ $100 ............. A-1+ VMIG-1 7,000 7,000,000
Illinois Health
Facilities
Authority,
(Gottlieb Health
Resources,
Inc.), (LOC:
Harris Trust and
Savings Bank),
Variable Rate
Weekly Demand
Note, 3.80%,
11/15/24(a) ....................... -- VMIG-1 2,800 2,800,000
Illinois Health Facilities Authority,
(Gottlieb Health Resources, Inc.),
(LOC: Harris Trust and Savings Bank),
Variable Rate Weekly Demand Note,
3.80%, 11/15/25(a) ................ -- VMIG-1 6,300 6,300,000
Illinois Health Facilities Authority,
(Northwestern Memorial Hospital),
Variable Rate Daily Demand Note,
3.90%, 8/15/25(a) ................. A-1+ VMIG-1 14,700 14,700,000
Illinois Health
Facilities
Authority,
Revolving Fund,
Pooled Financing
Program
(University of
Chicago
Project), 3.20%,
8/1/15 Mandatory
Put -
10/05/99 @ $100, .................. A-1+ VMIG-1 10,000 10,000,000
Illinois State,
G.O., (MBIA
Insured),
4.25%, 6/1/00 ..................... AA+ Aa2 1,400 1,404,484
Illinois State,
Sales Tax
Revenue, Series
V,
5.375%, 5/1/00 .................... AAA Aa2 2,800 2,834,154
Schaumburg,
Illinois, Series
A, Variable Rate
Weekly Demand
Note, 3.85%,
12/1/13(a) ........................ A-1+ P-1 1,200 1,200,000
-----------------
114,294,406
-----------------
-----------------
- -------------------------------------------------------------------
INDIANA - 2.7%
- -------------------------------------------------------------------
Indiana Health
Facilities
Authority,
(Charity
Obligated
Group), Series
F, Variable Rate
Weekly Demand
Note,
3.70%, 11/1/26(a) ................. A-1+ VMIG-1 1,700 1,700,000
</TABLE>
21
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
INDIANA - (continued)
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
Indiana Municipal
Power Agency,
Power Supplies
System Revenue,
Series A, (LOC:
Toronto Dominion
Bank),
Variable Rate
Weekly Demand
Note,
3.70%, 1/1/18(a) .................. A-1+ VMIG-1 $ 1,200 $1,200,000
Purdue University,
Student Fee
Bonds, Series K,
Variable Rate
Weekly Demand
Note, 3.65%, 7/1/20(a) ............ A-1+ VMIG-1 17,410 17,410,000
Purdue University,
Student Fee
Bonds, Series L,
Variable Rate
Weekly Demand
Note, 3.65%, 7/1/20(a) ............ A-1+ VMIG-1 11,275 11,275,000
-----------------
31,585,000
-----------------
- -------------------------------------------------------------------
IOWA - 0.3%
- -------------------------------------------------------------------
Iowa Finance
Authority,
Hospital
Facilities
Revenue, (Iowa
Health System),
Series B, (AMBAC
Insured),
Variable Rate
Weekly Demand
Note, 3.75%,
7/1/20(a) ......................... A-1+ VMIG-1 2,900 2,900,000
-----------------
- -------------------------------------------------------------------
KANSAS - 0.5%
- -------------------------------------------------------------------
Johnson County,
Kansas, G.O.,
Union School
District Number
229, Series A,
6.40%, 10/1/99 .................... AA Aa1 1,195 1,195,000
Kansas State,
Department of
Transporta-
tion Highway Revenue, 4.60%, 3/1/00 AA+ Aa2 3,000 3,017,137
Wichita, Kansas,
Water & Sewer
Utility,
Revenue Bond,
(FGIC Insured),
6.00%,
10/1/99 ........................... AAA Aaa 1,480 1,480,000
-----------------
5,692,137
-----------------
- -------------------------------------------------------------------
KENTUCKY - 0.3%
- -------------------------------------------------------------------
Kentucky
Asset/Liability
Commission,
General Fund,
TRAN, Series A,
4.25%, 6/28/00 .................... SP-1+ VMIG-1 3,000 3,018,791
-----------------
</TABLE>
22
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
LOUISIANA - 1.6%
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
East Baton Rouge
Parish,
Louisiana,
P.C.R., (Georgia
Pacific Corp.),
(LOC: Wachovia
Bank), Variable
Rate Weekly
Demand Note, 3.80%, 10/1/99(a) .... -- P-1 $ 5,100 $5,100,000
Louisiana Offshore
Terminal
Authority,
Deepwater Port
Revenue, First
Stage 1991A
(Loop Inc.),
(LOC: Morgan
Guaranty Trust),
Variable Rate
Weekly
Demand Note, 3.80%, 9/1/17(a) ..... A-1+ VMIG-1 13,910 13,910,000
-----------------
19,010,000
-----------------
- -------------------------------------------------------------------
MARYLAND - 6.4%
- -------------------------------------------------------------------
Community
Development
Administration
Multifamily
Development,
(Avalon Ridge
Apartments
Project),
(Guaranteed by
FNMA), Variable
Rate Weekly
Demand Note, 3.75%, 6/15/26(a) .... -- VMIG-1 10,400 10,400,000
Community
Development
Administration
Multifamily
Development,
(Avalon Lea
Apartments
Project),
(Guaranteed by
FNMA), Variable
Rate Weekly
Demand
Note, 3.75%, 6/15/26(a) ........... -- VMIG-1 6,800 6,800,000
Frederick County,
Maryland, BAN,
Variable Rate
Weekly Demand
Note, 3.80%,
10/1/07(a) ........................ A-1+ VMIG-1 1,300 1,300,000
Frederick County,
Maryland, Public
Facilities, G.O., 5.00%, 7/1/00 ... AA+ Aa2 2,690 2,713,688
Maryland State, G.O., 6.75%, 10/15/99 AAA Aaa 3,500 3,504,666
Maryland State, G.O., 5.00%, 3/1/00 . AAA Aaa 4,990 5,027,204
Maryland State
Health & Higher
Educational
Facilities
Authority,
(Charity
Obligated
Group), Series
F, Variable Rate
Weekly Demand
Note, 3.70%,
11/1/17(a) ........................ A-1+ -- 16,100 16,100,000
Maryland State
Health & Higher
Educational
Facilities
Authority,
Series F, (LOC:
Bank One),
Variable Rate
Weekly Demand
Note, 3.80%,
7/1/24(a) ......................... A-1+ VMIG-1 5,000 5,000,000
Montgomery County,
Maryland, G.O.,
Series A, 5.50%, 10/1/99 .......... AAA Aaa 3,000 3,000,000
Montgomery County,
Maryland, G.O.,
Series A, 5.10%, 4/1/00 ........... AAA Aaa 1,095 1,104,225
</TABLE>
23
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
MARYLAND - (continued)
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
Montgomery County,
Maryland, G.O.,
Series A, 5.00%, 5/1/00 ........... AAA Aaa $ 3,000 $3,027,200
Montgomery County,
Maryland, Tax
Exempt
Commercial
Paper, 3.25%,
10/7/99 ........................... A-1+ P-1 4,000 4,000,000
Montgomery County, Maryland, Tax
Exempt Commercial Paper, 3.35%,
10/8/99 ........................... A-1+ P-1 7,000 7,000,000
Washington Suburban
Sanitary
District, Water
Supply, G.O.,
Variable Rate
Weekly Demand Note, 3.80%, 8/1/04(a) A-1+ VMIG-1 4,700 4,700,000
-----------------
73,676,983
-----------------
- -------------------------------------------------------------------
MASSACHUSETTS - 3.3%
- -------------------------------------------------------------------
Massachusetts Bay
Transit
Authority,
RAN, Series A, 3.50%, 2/25/00 ..... SP-1+ MIG-1 8,300 8,310,833
Massachusetts
State, G.O.,
Series A,
Variable Rate
Weekly Demand
Note, 3.75%,
9/1/16(a) ......................... A-1+ VMIG-1 22,200 22,200,000
Massachusetts
State, G.O.,
Series B,
Variable Rate
Weekly Demand
Note,
3.75%, 9/1/16(a) .................. A-1+ VMIG-1 8,000 8,000,000
-----------------
38,510,833
-----------------
- -------------------------------------------------------------------
MICHIGAN - 4.8%
- -------------------------------------------------------------------
Detroit Michigan
Water Supply
System, (FGIC
Insured),
Variable Rate
Weekly
Demand Note, 3.75%, 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,
3.60%, 10/28/99(a) ................ A-1+ P-1 10,000 10,000,000
Michigan State
Hospital Finance
Authority,
(Charity
Obligated
Group), Variable
Rate Weekly
Demand Note,
3.70%,
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,
3.70%,
11/1/18(a) ........................ A-1+ VMIG-1 5,000 5,000,000
Michigan State
University,
General Revenue,
Series A-2,
Variable Rate
Weekly Demand Note, 3.80%, 8/15/22(a) A-1+ VMIG-1 20,500 20,500,000
</TABLE>
24
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
MICHIGAN - (continued)
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
University of
Michigan, Series
B, Tax Exempt
Commercial
Paper, 3.45%,
10/7/99 ........................... A-1+ P-1 $ 7,250 $ 7,250,000
University of
Michigan, Series
B, Tax Exempt
Commercial
Paper, 3.25%,
10/12/99 .......................... A-1+ P-1 5,000 5,000,000
University of Michigan, Series B, Tax
Exempt Commercial Paper, 3.30%,
10/18/99 .......................... A-1+ P-1 2,000 2,000,000
-----------------
55,070,000
-----------------
- -------------------------------------------------------------------
MINNESOTA - 2.2%
- -------------------------------------------------------------------
Minneapolis,
Minnesota, G.O.,
5.60%, 4/1/00 ..................... AAA Aaa 1,150 1,163,184
Minnesota State,
G.O.,
5.00%, 11/1/99 .................... AAA Aaa 4,275 4,281,649
St. Paul,
Minnesota, G.O.,
Series C,
4.25%, 4/1/00 ..................... AA+ Aa2 1,300 1,305,485
University of
Minnesota,
Series A,
Variable Rate
Weekly Demand
Note, 3.80%,
1/1/34(a) ......................... A-1+ VMIG-1 19,000 19,000,000
-----------------
25,750,318
-----------------
- -------------------------------------------------------------------
MISSISSIPPI - 3.9%
- -------------------------------------------------------------------
Jackson County,
Mississippi,
Chevron USA Inc.
Project,
(Guaranteed by
Chevron),
Variable Rate
Daily Demand
Note,
3.75%, 6/1/23(a) .................. -- P-1 2,600 2,600,000
Jackson County,
Mississippi,
Chevron USA,
Inc. Project,
(Guaranteed by
Chevron),
Variable Rate
Daily Demand
Note,
3.90%, 6/1/23(a) .................. -- P-1 11,160 11,160,000
Perry County,
Mississippi,
Leaf River
Forest Project,
(LOC: Wachovia
Bank), Variable
Rate Daily
Demand Note,
3.75%, 3/1/02(a) .................. -- P-1 31,000 31,000,000
-----------------
44,760,000
-----------------
- -------------------------------------------------------------------
MISSOURI - 3.7%
- -------------------------------------------------------------------
Bi-State
Development
Agency,
Missouri, St.
Clair County,
(MBIA Insured),
Variable Rate
Weekly Demand
Note, 3.80%,
7/1/28(a) ......................... A-1+ -- 21,100 21,100,000
</TABLE>
25
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
MISSOURI - (continued)
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
Missouri State,
Health &
Educational
Facilities
Authority,
(Barnes Hospital
Project), (LOC:
Morgan Guaranty
Trust), Variable
Rate Weekly
Demand
Note, 3.75%, 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, 3.75%, 6/1/14(a) ..... A-1+ VMIG-1 2,000 2,000,000
Missouri State,
Health &
Educational
Facilities
Authority,
(Sisters of
Mercy Health),
Series D,
Variable Rate
Weekly
Demand Note, 3.75%, 6/1/19(a) ..... A-1+ VMIG-1 10,000 10,000,000
Missouri State,
Health &
Educational
Facilities
Authority,
Washington
University,
Variable Rate
Demand Bonds,
Tax Exempt
Commercial Paper
Mode,
3.60%, 3/1/00 ..................... A-1+ VMIG-1 6,400 6,400,000
-----------------
42,400,000
-----------------
- -------------------------------------------------------------------
MONTANA - 2.1%
- -------------------------------------------------------------------
Forsyth, Montana,
P.C.R.,
(Pacificorp
Project), (LOC:
Rabobank
Nederland),
Variable Rate
Daily Demand
Note,
4.05%, 1/1/18(a) .................. A-1+ P-1 24,550 24,550,000
-----------------
- -------------------------------------------------------------------
NEVADA - 0.5%
- -------------------------------------------------------------------
Las Vegas Valley
Water District,
Nevada, (LOC:
Westdeutsche
Landesbank), Tax
Exempt
Commercial
Paper, 3.30%,
10/13/99 .......................... A-1+ P-1 4,000 4,000,000
Las Vegas Valley
Water District,
Nevada, (LOC:
Westdeutsche
Landesbank), Tax
Exempt
Commercial
Paper, 3.40%,
10/18/99 .......................... A-1+ P-1 2,000 2,000,000
-----------------
6,000,000
-----------------
</TABLE>
26
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
NEW JERSEY - 2.3%
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
State of New
Jersey, TRAN,
Tax Exempt
Commercial Mode, 3.45%, 10/13/99 .. A-1+ P-1 $10,000 $10,000,000
State of New
Jersey, TRAN,
Tax Exempt
Commercial Mode, 3.35%, 10/14/99 .. A-1+ P-1 5,000 5,000,000
State of New
Jersey, TRAN,
Tax Exempt
Commercial Mode, 3.45%, 10/25/99 .. A-1+ P-1 2,000 2,000,000
State of New
Jersey, TRAN,
Tax Exempt
Commercial Mode, 3.45%, 10/25/99 .. A-1+ P-1 3,000 3,000,000
State of New
Jersey, TRAN,
Tax Exempt
Commercial Mode, 3.50%, 10/26/99 .. A-1+ P-1 7,000 7,000,000
-----------------
27,000,000
-----------------
- -------------------------------------------------------------------
NEW MEXICO - 0.3%
- -------------------------------------------------------------------
New Mexico State
Severance Tax,
Revenue Bond, Series A,
5.00%, 7/1/00 ...................... AA+ Aa2 1,500 1,516,386
New Mexico State
Severance Tax,
Revenue Bond, Series A,
5.00%, 7/1/00 ...................... AA+ Aa2 2,000 2,021,139
-----------------
3,537,525
-----------------
- -------------------------------------------------------------------
NEW YORK - 0.9%
- -------------------------------------------------------------------
Long Island Power
Authority, New
York, Electrical
System Revenue,
(LOC:
Westdeutsche
Landesbank 50%,
Bayerische
Landesbank 50%),
Variable Rate
Demand Bonds,
Tax Exempt
Commercial Paper
Mode, 3.60%,
10/27/99 ........................... A-1+ VMIG-1 1,700 1,700,000
Long Island Power
Authority, New
York, Electrical
System Revenue,
(LOC:
Westdeutsche
Landesbank 50%,
Bayerische
Landesbank 50%),
Variable Rate
Demand Bonds,
Tax Exempt
Commercial Paper
Mode, 3.50%,
2/9/00 ............................. A-1+ VMIG-1 1,000 1,000,000
</TABLE>
27
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
NEW YORK - (continued)
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
Long Island Power
Authority, New
York, Electrical
System Revenue,
Series 5, (LOC:
ABN AMRO Bank
N.V. 50%, Morgan
Guaranty Trust
50%), Variable
Rate Daily
Demand Note,
3.75%,
5/1/33(a) .......................... A-1+ VMIG-1 $ 400 $ 400,000
New York City, New
York,
Transitional
Finance
Authority
Revenue,
SubSeries B-1,
2.90%, 11/1/27
Mandatory Put -
11/01/99 @ $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, 3.70%, 10/1/29(a) ..... A-1+ -- 2,000 2,000,000
-----------------
10,100,000
-----------------
- -------------------------------------------------------------------
NORTH CAROLINA - 4.1%
- -------------------------------------------------------------------
Charlotte-Mecklenberg
Hospital
Authority, North
Carolina, Health
Care System
Revenue, Series
C, Variable Rate
Weekly Demand
Note, 3.65%,
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, 3.65%,
1/15/26(a) ......................... A-1+ VMIG-1 11,600 11,600,000
Mecklenburg County,
North Carolina,
G.O., Public Improvements,
Series B, 4.25%, 2/1/00 ............ AAA Aaa 2,000 2,007,223
North Carolina
Medical Care
Commission
Hospital
Revenue, (North
Carolina Baptist
Hospital
Project), Series
B, Variable Rate
Weekly Demand
Note,
3.85%, 6/1/22(a) ................... A-1+ VMIG-1 10,100 10,100,000
North Carolina
Medical Care
Commission
Hospital
Revenue, Series
B, (Moses H.
Cone Memorial
Hospital
Project),
Variable Rate
Weekly Demand
Note, 3.85%, 9/1/05(a) ............. A-1+ -- 4,400 4,400,000
North Carolina
State, G.O.,
Series A,
4.70%, 2/1/00 ...................... AAA Aaa 3,000 3,015,571
North Carolina
State, G.O.,
Series A,
4.75%, 4/1/00 ...................... AAA Aaa 2,000 2,015,690
</TABLE>
28
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
NORTH CAROLINA - (continued)
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
North Carolina
State University
(Raleigh),
(Centennial
Project), Series
A, Variable Rate
Weekly Demand
Note, 3.70%,
12/15/19(a) ........................ A-1+ -- $ 2,000 $ 2,000,000
Wake County, North
Carolina, G.O.,
4.70%, 3/1/00 ...................... AAA Aaa 2,000 2,012,401
-----------------
47,150,885
-----------------
- -------------------------------------------------------------------
OHIO - 2.6%
- -------------------------------------------------------------------
Ohio State, Air
Quality
Development
Authority,
Series A, (LOC:
Morgan Guaranty
Trust), Variable
Rate Daily
Demand Note, 4.15%, 12/1/15(a) ..... A-1+ -- 3,200 3,200,000
Ohio State, Air
Quality
Development
Authority,
Series A, (LOC:
UBS AG),
Variable Rate
Daily Demand
Note,
4.15%, 12/1/15(a) .................. A-1+ -- 4,200 4,200,000
Ohio State, G.O.,
Highway Capital
Improvements, Series C,
4.00%, 5/1/00 ...................... AAA Aa1 3,300 3,312,697
Ohio State, G.O.,
Series U, 4.40%,
5/15/00 ............................ AAA Aa1 4,900 4,935,958
Ohio State
University, Tax
Exempt
Commercial Paper, 3.40%, 10/14/99 .. A-1+ P-1 1,700 1,700,000
Ohio State
University, Tax
Exempt
Commercial Paper, 3.30%, 10/18/99 .. A-1+ P-1 2,000 2,000,000
Ohio State
University, Tax
Exempt
Commercial Paper, 3.35%, 10/18/99 .. A-1+ P-1 3,000 3,000,000
Ohio State
University, Tax
Exempt
Commercial Paper, 3.45%, 10/21/99 .. A-1+ P-1 4,000 4,000,000
Ohio State
University, Tax
Exempt
Commercial Paper, 3.50%, 11/17/99 .. A-1+ P-1 3,500 3,500,000
-----------------
29,848,655
-----------------
- -------------------------------------------------------------------
OREGON - 1.3%
- -------------------------------------------------------------------
Umatilla County,
Oregon, Hospital
Facilities
Authority,
(Catholic Health
Initiatives),
Series B,
Variable Rate
Weekly
Demand Note, 3.95%, 12/1/24(a) ..... A-1+ VMIG-1 15,400 15,400,000
-----------------
</TABLE>
29
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
PENNSYLVANIA - 0.1%
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
York County,
Pennsylvania,
Industrial
Development
Authority,
P.C.R.,
Philadelphia
Electric Co.,
(LOC: Toronto
Dominion Bank),
Variable Rate
Daily Demand
Note, 3.85%,
8/1/16(a) .......................... A-1+ P-1 $ 1,300 $1,300,000
-----------------
- -------------------------------------------------------------------
SOUTH CAROLINA - 0.6%
- -------------------------------------------------------------------
Rock Hill, South
Carolina,
Utility System
Revenue, Series
B, (AMBAC
Insured),
Variable Rate
Weekly Demand
Note,
3.65%, 1/1/23(a) ................... A-1+ VMIG-1 5,515 5,515,000
South Carolina State, G.O.,
5.50%, 4/1/00 ........................ AAA Aaa 1,500 1,513,620
-----------------
7,028,620
-----------------
- -------------------------------------------------------------------
TENNESSEE - 3.7%
- -------------------------------------------------------------------
Memphis, Tennessee,
G.O., 5.00%,
10/1/99 ............................ AA+ Aa2 2,265 2,265,000
Memphis, Tennessee,
G.O., Series A,
Variable Rate
Weekly Demand
Note,
3.85%, 8/1/04(a) ................... A-1+ VMIG-1 2,500 2,500,000
Memphis, Tennessee,
G.O., Series A,
Variable Rate
Weekly Demand
Note,
3.85%, 8/1/07(a) ................... A-1+ VMIG-1 2,800 2,800,000
Tennessee School
Bond Authority,
Tax Exempt
Commercial
Paper, 3.40%,
10/12/99 ........................... A-1+ P-1 5,500 5,500,000
Tennessee School
Bond Authority,
Tax Exempt
Commercial
Paper, 3.45%,
10/12/99 ........................... A-1+ P-1 1,200 1,200,000
Tennessee School
Bond Authority,
Tax Exempt
Commercial
Paper, 3.40%,
10/13/99 ........................... A-1+ P-1 6,900 6,900,000
Tennessee School
Bond Authority,
Tax Exempt
Commercial
Paper, 3.50%,
10/21/99 ........................... A-1+ P-1 5,000 5,000,000
Tennessee School
Bond Authority,
Tax Exempt
Commercial
Paper, 3.55%,
10/21/99 ........................... A-1+ P-1 3,000 3,000,00
Tennessee State, G.O., 5.00%, 5/1/00 . AAA Aaa 2,500 2,525,298
Tennessee State, G.O., 4.00%, 5/1/00 . AAA Aaa 3,830 3,845,162
</TABLE>
30
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
TENNESSEE - (continued)
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tennessee State, G.O., 6.10%, 6/1/00 . . AAA Aaa $ 1,425 $1,451,223
Tennessee State, G.O., 6.10%, 6/1/00 . . AAA Aaa 1,550 1,577,838
Tennessee State, G.O., Variable Rate
Weekly Demand Note, 3.65%, 7/2/01)a) . A-1+ VMIG-1 2,000 2,000,000
Tennessee State, G.O., Variable Rate
Weekly Demand Note, 3.65%, 7/2/01(a) . A-1+ VMIG-1 1,900 1,900,000
-----------------
42,464,521
-----------------
- -------------------------------------------------------------------
TEXAS - 15.3%
- -------------------------------------------------------------------
Austin, Texas,
Combined Utility
System, Series
A, (LOC: Morgan
Guaranty Trust),
Tax Exempt
Commercial
Paper,
3.30%, 10/8/99 ..................... A-1+ P-1 3,000 3,000,000
Austin, Texas,
Combined Utility
System, Series
A, (LOC: Morgan
Guaranty Trust),
Tax Exempt
Commercial
Paper,
3.35%, 10/15/99 .................... A-1+ P-1 1,000 1,000,000
Austin, Texas,
Combined Utility
System, Series
A, (LOC: Morgan
Guaranty Trust),
Tax Exempt
Commercial
Paper,
3.40%, 10/20/99 .................... A-1+ P-1 3,000 3,000,000
Austin, Texas,
Combined Utility
System, Series
A, (LOC: Morgan
Guaranty Trust),
Tax Exempt
Commercial
Paper,
3.55%, 10/27/99 .................... A-1+ P-1 5,000 5,000,000
Austin, Texas,
Combined Utility
System, Series
A, (LOC: Morgan
Guaranty Trust),
Tax Exempt
Commercial
Paper,
3.45%, 11/8/99 ..................... A-1+ P-1 5,000 5,000,000
City of Houston,
Texas, G.O.,
Series B, Tax
Exempt
Commercial
Paper,
3.25%, 10/12/99 .................... A-1+ P-1 2,000 2,000,000
City of Houston,
Texas, G.O.,
Series B, Tax
Exempt
Commercial
Paper,
3.40%, 10/18/99 .................... A-1+ P-1 3,000 3,000,000
City of Houston,
Texas, G.O.,
Series A, Tax
Exempt
Commercial
Paper,
3.40%, 10/19/99 .................... A-1+ P-1 5,000 5,000,000
City of Houston,
Texas, G.O.,
Series B, Tax
Exempt
Commercial
Paper,
3.40%, 11/5/99 ..................... A-1+ P-1 10,900 10,900,000
City of Houston,
Texas, TRAN,
4.25%,
6/30/00 ............................ SP-1+ MIG-1 8,000 8,054,473
Dallas, Texas, G.O., 5.50%, 2/15/00 .. AAA Aaa 5,500 5,545,532
Dallas, Texas, G.O., 5.50%, 2/15/00 .. AAA Aaa 2,000 2,016,776
</TABLE>
31
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
TEXAS - (continued)
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
Dallas, Texas,
Revenue Bond,
Waterworks
and Sewer System 8.00%, 10/1/99 .... AA Aa2 $ 1,000 $1,000,000
Deer Park, Texas,
Independent
School District,
G.O., (PSF
Guaranteed),
6.25%, 2/15/00 ..................... AAA Aaa 1,400 1,416,592
Garland, Texas,
Independent
School District,
G.O., (PSF
Guaranteed),
5.50%,
2/15/00 ............................ AAA Aaa 1,155 1,166,770
Harris County,
Texas, G.O., Tax
Exempt
Commercial Paper, 3.45%, 10/8/99 ... A-1+ P-1 1,900 1,900,000
Harris County,
Texas, G.O., Tax
Exempt
Commercial Paper, 3.35%, 10/21/99 .. A-1+ P-1 3,000 3,000,000
Harris County,
Texas, G.O., Tax
Exempt
Commercial Paper, 3.40%, 10/27/99 .. A-1+ P-1 2,250 2,250,000
Harris County,
Texas, G.O.,
Toll Road,
Series H,
Variable Rate
Weekly Demand
Note, 3.75%, 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, 3.65%, 1/1/13(a) ...... A-1+ VMIG-1 28,700 28,700,000
Sabine River
Authority,
Texas, P.C.R.,
Utilities
Electric
Company, (LOC:
UBS AG),
Variable Rate
Daily Demand
Note, 4.25%, 6/1/30(a) ............. A-1+ VMIG-1 10,350 10,350,000
Texas Higher
Education
Authority,
Series B, (FGIC
Insured),
Variable Rate
Weekly Demand
Note, 3.80%,
12/1/25(a) ........................ A-1+ VMIG-1 3,160 3,160,000
Texas State,
P.F.A., Tax
Exempt Com-
mercial Paper, 3.45%, 10/25/99 ..... A-1+ P-1 7,000 7,000,000
Texas State, TRAN 4.50%, 8/31/00 ..... SP-1+ MIG-1 32,200 32,426,923
Travis County,
Texas, Health
Facilities
Development
Corporation,
(Charity
Obligation
Group), Series
E, Variable Rate
Weekly Demand
Note, 3.70%,
11/1/27(a) ......................... A-1+ VMIG-1 7,800 7,800,000
University of
Texas, Texas,
Permanent
University Fund, 5.00%, 7/1/00 ..... A-1+ P-1 4,070 4,112,720
University of
Texas, Texas,
Tax Exempt
Commercial Paper, 3.30%, 10/6/99 ... A-1+ P-1 2,000 2,000,000
University of
Texas, Texas,
Tax Exempt
Commercial Paper, 3.30%, 10/7/99 ... A-1+ P-1 3,000 3,000,000
</TABLE>
32
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
TEXAS - (continued)
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
University of
Texas, Texas,
Tax Exempt
Commercial Paper, 3.55%, 10/26/99 .. A-1+ P-1 $ 5,000 $ 5,000,000
University of
Texas, Texas,
Tax Exempt
Commercial Paper, 3.30%, 2/7/00 .... A-1+ P-1 3,000 3,000,000
Waco, Texas, Health
Facilities
Development
Corporation,
(Charity
Obligated
Group), Series
F, Variable Rate
Weekly
Demand Note, 3.70%, 11/1/26(a) ..... A-1+ VMIG-1 1,000 1,000,000
-----------------
176,399,786
-----------------
- -------------------------------------------------------------------
UTAH - 2.1%
- -------------------------------------------------------------------
Utah State, G.O. 4.70%, 7/1/00 ....... AAA Aaa 2,325 2,346,945
Utah State, G.O.,
Variable Rate
Weekly
Demand Note, 3.75%, 7/1/16(a) ...... A-1+ VMIG-1 2,000 2,000,000
Utah State, G.O.,
Variable Rate
Weekly
Demand Note, 3.65%, 7/1/16(a) ...... A-1+ VMIG-1 6,000 6,000,000
Utah State, G.O.,
Variable Rate
Weekly
Demand Note, 3.65%, 7/1/16(a) ...... A-1+ VMIG-1 7,025 7,025,000
Utah State, G.O.,
Variable Rate
Weekly
Demand Note, 3.75%, 7/1/16(a) ...... A-1+ VMIG-1 3,000 3,000,000
Utah Transit
Authority Sales
Tax &
Transportation
Revenue, (LOC:
Bayerische
Landesbank),
Variable Rate
Weekly
Demand Note, 3.60%, 5/1/28(a) ...... A-1+ -- 3,400 3,400,000
-----------------
23,771,945
-----------------
- -------------------------------------------------------------------
VIRGINIA - 1.1%
- -------------------------------------------------------------------
Arlington County,
Virginia, G.O.,
4.00%, 6/1/00 ...................... AAA Aaa 1,400 1,405,068
Fairfax County,
Virginia, G.O.,
Series A,
7.00%, 6/1/00 ...................... AAA Aaa 1,500 1,534,031
Virginia, BANS, Tax
Exempt
Commercial
Paper, 3.60%, 10/12/99 ............. A-1+ P-1 5,100 5,100,000
Virginia, BANS, Tax
Exempt
Commercial
Paper, 3.60%, 10/15/99 ............. A-1+ P-1 4,200 4,200,000
-----------------
12,239,099
-----------------
- -------------------------------------------------------------------
WASHINGTON - 1.1%
- -------------------------------------------------------------------
Washington State,
Series 96A,
Variable Rate
Weekly Demand
Note, 3.75%,
6/1/20 ............................. A-1+ VMIG-1 12,500 12,500,000
----------------
</TABLE>
33
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Net Assets September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
WISCONSIN - 2.6%
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
Milwaukee,
Wisconsin, G.O.,
Series A9,
3.85%, 3/1/00 ...................... AA+ Aa1 $ 5,180 $ 5,197,861
Milwaukee,
Wisconsin, G.O.,
Series F,
5.00%, 11/15/99 .................... AA+ Aa1 2,185 2,190,401
Oak Creek,
Wisconsin,
P.C.R.,
(Wisconsin
Electric Power
Company
Project),
Variable Rate
Weekly Demand
Note,
3.80%, 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, 3.85%, 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 1,977,821
Wisconsin State,
G.O., Series 2
4.50%, 5/1/00 ...................... AA Aa2 1,920 1,933,407
Wisconsin State,
G.O., Series A
4.00%, 5/1/00 ...................... AA Aa2 1,740 1,747,197
Wisconsin State,
G.O., Series C
5.00%, 5/1/00 ...................... AA Aa2 3,000 3,030,008
-----------------
30,426,695
-----------------
- -------------------------------------------------------------------
WYOMING - 3.4%
- -------------------------------------------------------------------
Lincoln County,
Wyoming, P.C.R.,
(Exxon Project -
C), Variable
Rate
Daily Demand Note, 3.75%, 11/1/14(a) . A-1+ P-1 9,300 9,300,000
Lincoln County,
Wyoming, P.C.R.,
(Exxon Project -
C), Variable
Rate
Daily Demand Note, 3.75%, 11/1/14(a) . A-1+ P-1 1,100 1,100,000
Sublette County,
Wyoming, P.C.R.,
(Exxon Project),
Variable Rate
Daily
Demand Note, 3.85%, 11/1/14(a) ....... A-1+ -- 5,000 5,000,000
Sweetwater County,
Wyoming, P.C.R.,
Pacificorp
Project, Series
B, (LOC:
Canadian
Imperial Bank),
Variable Rate
Daily Demand
Note, 4.05%,
01/1/14(a) .......................... A-1+ P-1 4,350 4,350,000
Uinta County,
Wyoming, P.C.R.,
(Chevron
U.S.A.),
Variable Rate
Daily
Demand Note, 3.75%, 4/1/10(a) ....... -- P-1 5,000 5,000,000
Uinta County,
Wyoming, P.C.R.,
(Chevron
U.S.A.),
Variable Rate
Daily
Demand Note, 3.75%, 8/15/20(a) ...... -- P-1 2,300 2,300,000
</TABLE>
34
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Rating
-------------- Par
TAX-FREE SERIES (continued) S&P Moody's (000) Value
- -----------------------------------------------------------------------------------
WYOMING - (continued)
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
Wyoming State, TRAN
4.00%, 6/27/00 .................... SP-1+ -- $12,400 $ 12,450,563
-----------------
39,500,563
-----------------
TOTAL INVESTMENTS - 99.5% (Cost $1,147,022,184) ................. 1,147,022,184
-----------------
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.5% .................... 5,250,878
-----------------
NET ASSETS - 100.0% ............................................. $1,152,273,062
-----------------
-----------------
Net Asset Value, Offering and Redemption Price Per:
Tax-Free Share
($1,058,361,915 O 1,058,512,123 shares outstanding) .......... $1.00
-----------------
-----------------
Tax-Free Institutional Share
($93,911,147 O 93,923,772 shares outstanding)................. $1.00
-----------------
-----------------
</TABLE>
- ------------
(a) Demand security; payable upon demand by the Fund with usually no
more than seven (7) calendar days' notice. Interest rates are
redetermined periodically.Rates shown are those in effect on
September 30, 1999.
- -------------------------------------------------------------------
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
35
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
TAX-FREE SERIES (continued)
- --------------------------------------------------------------------------------
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 of the best quality.
VMIG-1 Variable rate demand obligations of the best quality. P-1 Commercial
paper is of the best quality.
S&P MUNICIPAL RATINGS:
AAA Of the highest quality.
AA 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.
36
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Operations (Unaudited)
For the six months ended September 30, 1999
<TABLE>
<CAPTION>
Prime Treasury Tax-Free
Series Series Series
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest income ................. $108,333,920 $ 19,752,064 $ 18,363,181
------------ ------------ ------------
Expenses:
Investment advisory fees ........ 5,474,942 1,018,072 1,523,192
Distribution fees ............... 5,016,300 915,464 1,306,254
Registration fees ............... 362,038 105,388 111,549
Accounting fees ................. 86,498 66,614 70,885
Professional fees ............... 85,117 27,412 23,794
Transfer agent fees ............. 1,111,923 223,260 112,730
Custodian fees .................. 211,740 41,735 79,203
Directors' fees ................. 84,414 17,736 17,949
Shareholder service fees ........ 950,690 183,093 261,250
Miscellaneous ................... 264,343 45,152 74,199
------------ ------------ ------------
Total expenses ......... 13,648,005 2,643,926 3,581,005
Less: Fees waived ......... -- (214,927) --
------------ ------------ ------------
Net expenses ......... 13,648,005 2,428,999 3,581,005
------------ ------------ ------------
Net investment income .............. 94,685,915 17,323,065 14,782,176
------------ ------------ ------------
Net realized gain (loss) from
security transactions ........... 45 66,896 (52,775)
------------ ------------ ------------
Net increase in net assets resulting
from operations ................. $ 94,685,960 $ 17,389,961 $ 14,729,401
============ ============ ============
</TABLE>
See Notes to Financial Statements.
37
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets September 30, 1999
PRIME SERIES
- --------------------------------------------------------------------------------
For the Six For the
Months Ended Year Ended
September 30, March 31,
------------- ----------
1999/1 1999
Increase (Decrease) in Net Assets
Operations:
Net investment income .................. $ 94,685,915 $ 178,689,887
Net realized gain (loss) from
security transactions ................ 45 88,481
-------------- --------------
Net increase in net assets resulting
from operations ...................... 94,685,960 178,778,368
-------------- --------------
Distributions to Shareholders From:
Net investment income:
Deutsche Banc Alex. Brown Cash Reserve
Prime Shares, Treasury Shares and
Tax-Free Shares, respectively ...... (84,206,344) (151,410,202)
Deutsche Banc Alex. Brown Cash Reserve
Prime Institutional Shares,
Treasury Institutional Shares and
Tax-Free Institutional Shares,
respectively ....................... (8,622,128) (16,058,016)
Flag Investors Class A Shares ........ (262,028) (435,677)
Flag Investors Class B Shares ........ (67,912) (72,373)
Quality Cash Reserve Shares .......... (1,581,609) (10,713,744)
-------------- --------------
Total distributions .................. (94,740,021) (178,690,012)
-------------- --------------
Capital Share Transactions, net ........... 323,594,286 496,268,896
-------------- --------------
Total increase (decrease) in net assets 323,594,330 496,357,252
Net Assets:
Beginning of period .................... 4,213,766,352 3,717,409,100
-------------- --------------
End of period .......................... $4,537,360,682 $4,213,766,352
============== ==============
- ------------
(1) Unaudited.
38
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
TREASURY SERIES TAX-FREE SERIES
- --------------------------------------------------------------------------------
For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended
September 30, March 31, September 30, March 31,
------------- ------------ ------------- ---------
1999/1 1999 1999/1 1999
$ 17,323,065 $ 37,681,660 14,782,176 $ 27,207,123
66,896 156,495 (52,775) 18,413
------------ ------------ -------------- ---------------
17,389,961 37,838,155 14,729,401 27,225,536
------------ ------------ -------------- ---------------
(14,601,560) (33,507,990) (13,396,244) (24,515,362)
(2,721,506) (4,334,875) (1,385,932) (2,746,989)
-- -- -- --
-- -- -- --
-- -- -- --
------------ ------------ -------------- ---------------
(17,323,066) (37,842,865) (14,782,176) (27,262,351)
------------ ------------ -------------- ---------------
(185,684,902) 42,060,849 20,334,784 214,160,192
------------ ------------ -------------- ---------------
(185,618,006) 42,056,138 20,282,009 214,123,377
939,262,819 897,206,681 1,131,991,053 917,867,676
------------ ------------ -------------- ---------------
$753,644,813 $939,262,819 1,152,273,062 $1,131,991,053
============ ============ ============== ===============
See Notes to Financial Statements.
39
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
DEUTSCHE BANC ALEX. BROWN CASH RESERVE PRIME SHARES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
September 30, March 31,
------------- ---------
1999/2 1999
<S> <C> <C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
-------------- --------------
Income from Investment Operations:
Net investment income ................ 0.0222 0.0473
Less Distributions:
Dividends from net investment income . (0.0222) (0.0473)
-------------- --------------
Net asset value at end of period ..... $ 1.00 $ 1.00
============== ==============
Total Return:
Based on net asset value per share ... 2.24% 4.84%
Ratios to Average Net Assets:
Expenses ............................. 0.66%(1) 0.63%
Net investment income ................ 4.43%(1) 4.71%
Supplemental Data:
Net assets at end of period .......... $3,995,564,474 $3,727,990,170
Number of shares outstanding at
end of period ...................... 3,995,480,297 3,727,906,079
</TABLE>
- ----------
(1) Annualized.
(2) Unaudited.
40
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
DEUTSCHE BANC ALEX. BROWN CASH RESERVE PRIME SHARES (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
- ----------------------------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995
<S> <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.
41
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For a share outstanding throughout each period)
FLAG INVESTORS CASH RESERVE PRIME SHARES--CLASS A
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
September 30, March 31,
------------- ---------
1992/2 1999
<S> <C> <C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
------------ ------------
Income from Investment Operations:
Net investment income ................ 0.0224 0.0474
Less Distributions:
Dividends from net investment income . (0.0224) (0.0474)
------------ ------------
Net asset value at end of period ..... $ 1.00 $ 1.00
============ ============
Total Return:
Based on net asset value per share ... 2.26% 4.85%
Ratios to Average Net Assets:
Expenses ............................. 0.61%/1 0.63%
Net investment income ................ 4.55%/1 4.67%
Supplemental Data:
Net assets at end of period .......... $ 13,118,065 $ 13,028,272
Number of shares outstanding at
end of period ...................... 13,117,559 13,027,769
</TABLE>
- ----------
(1) Annualized.
(2) Unaudited.
42
<PAGE>
DEUTSCHE BANC 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>
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.
43
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each period)
FLAG INVESTORS CASH RESERVE PRIME SHARES--CLASS B
- --------------------------------------------------------------------------------
For the Six For the
Months Ended Year Ended
September 30, March 31,
------------- ---------
1999/3 1999
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
---------- ----------
Income from Investment Operations:
Net investment income 0.0187 0.0400
Less Distributions:
Dividends from net investment (0.0187) (0.0400)
---------- ----------
Net asset value at end of period $ 1.00 $ 1.00
========== ==========
Total Return:
Based on net asset value per share 1.88% 4.07%
Ratios to Average Net Assets:
Expenses 1.36%(2) 1.37%
Net investment income 3.81%(2) 3.92%
Supplemental Data:
Net assets at end of period $6,273,802 $2,355,863
Number of shares outstanding at
end of period 6,273,698 2,355,780
- ----------
(1) Commencement of operations.
(2) Annualized.
(3) Unaudited.
44
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
FLAG INVESTORS CASH RESERVE PRIME SHARES--CLASS B (continued)
- --------------------------------------------------------------------------------
For the Period April 3, 1995(1)
For the Years Ended March 31, through March 31,
- --------------------------------------------------------------------------------
1998 1997 1996
$ 1.00 $ 1.00 $ 1.00
--------- -------- ---------
0.0418 0.0414 0.0361
(0.0418) (0.0414) (0.0361)
--------- --------- ---------
$ 1.00 $ 1.00 $ 1.00
========= ========= =========
4.27% 4.22% 3.69%
1.42% 1.38% 1.38%(2)
4.18% 4.14% 4.30%(2)
$ 184,382 $227,098 $ 10,200
184,382 227,098 10,200
See Notes to Financial Statements.
45
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each period)
DEUTSCHE BANC ALEX. BROWN CASH RESERVE PRIME INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
September 30, March 31,
------------- ---------
1999/2 1999
<S> <C> <C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
------------ ------------
Income from Investment Operations:
Net investment income 0.0237 0.0499
Less Distributions:
Dividends from net investment income (0.0237) (0.0499)
------------ ------------
Net asset value at end of period $ 1.00 $ 1.00
============ ============
Total Return:
Based on net asset value per share 2.39% 5.11%
Ratios to Average Net Assets:
Expenses 0.35%(1) 0.36%
Net investment income 4.69%(1) 4.98%
Supplemental Data:
Net assets at end of period $451,946,360 $388,447,492
Number of shares outstanding at
end of period 451,939,552 388,440,636
</TABLE>
- ----------
(1) Annualized.
(2) Unaudited.
46
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
DEUTSCHE BANC ALEX. BROWN CASH RESERVE PRIME INSTITUTIONAL SHARES (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
- ---------------------------------------------------------------------------------------------------------------------------
1998 1997 1996 1995
<S> <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.
47
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, Inc.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each period)
QUALITY CASH RESERVE PRIME SHARES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
September 30, March 31,
------------- ---------
1999/4 1999
<S> <C> <C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
----------- -----------
Income from Investment Operations:
Net investment income . . 0.0207 0.0444
Less Distributions:
Dividends from net investment income (0.0207) (0.0444)
----------- -----------
Net asset value at end of period $ 1.00 $ 1.00
=========== ===========
Total Return:
Based on net asset value per share 2.08% 4.53%
Ratios to Average Net Assets:
Expenses 0.96%(3) 0.92%(1)
Net investment income 4.12%(3) 4.44%(2)
Supplemental Data:
Net assets at end of period $70,457,982 $81,944,555
Number of shares outstanding at
end of period 70,451,450 81,938,027
</TABLE>
- ----------
(1) Ratios of expenses to average net assets prior fee waivers 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.
(3) Annualized.
(4) Unaudited.
48
<PAGE>
DEUTSCHE BANC 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.
49
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each period)
DEUTSCHE BANC ALEX. BROWN CASH RESERVE TREASURY SHARES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
September 30, March 31,
------------- ---------
1999/4 1999
<S> <C> <C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
------------ ------------
Income from Investment Operations:
Net investment income 0.0200 0.0427
Less Distributions:
Dividends from net investment income (0.0200) (0.0427)
------------ ------------
Net asset value at end of period $ 1.00 $ 1.00
============ ============
Total Return:
Based on net asset value per share 2.02% 4.35%
Ratios to Average Net Assets:
Expenses 0.63%(3) 0.58%
Net investment income 3.97%(3) 4.26%
Supplemental Data:
Net assets at end of period $654,942,044 $816,700,318
Number of shares outstanding at
end of period 654,847,439 816,622,190
</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.
(3) Annualized.
(4) Unaudited.
50
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
DEUTSCHE BANC 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 0.0464 0.0453 0.0494 0.0411
Less Distributions:
Dividends from net investment income (0.0464) (0.0453) (0.0494) (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.
51
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each period)
DEUTSCHE BANC ALEX. BROWN CASH RESERVE
TREASURY INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
September 30, March 31,
------------- ---------
1999/4 1999
<S> <C> <C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
------------ ------------
Income from Investment Operations:
Net investment income 0.0215 0.0453
Less Distributions:
Dividends from net investment income (0.0215) (0.0453)
------------ ------------
Net asset value at end of period $ 1.00 $ 1.00
============ ============
Total Return:
Based on net asset value per share 2.17% 4.63%
Ratios to Average Net Assets:
Expenses 0.33%(3) 0.33%
Net investment income 4.25%(3) 4.54%
Supplemental Data:
Net assets at end of period $98,668,619 $122,562,501
Number of shares outstanding at
end of period 98,651,562 122,561,713
</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.
(3) Annualized.
(4) Unaudited.
52
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
DEUTSCHE BANC 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.
53
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, Inc.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each period)
DEUTSCHE BANC ALEX. BROWN CASH RESERVE TAX-FREE SHARES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
September 30, March 31,
------------- ---------
1999/2 1999
<S> <C> <C>
Per Share Operating Performance:
Net asset value at beginning of period $ 1.00 $ 1.00
-------------- --------------
Income from Investment Operations:
Net investment income 0.0127 0.0277
Less Distributions:
Dividends from net investment income (0.0127) (0.0277)
-------------- --------------
Net asset value at end of period $ 1.00 $ 1.00
============== ==============
Total Return:
Based on net asset value per share 1.28% 2.81%
Ratios to Average Net Assets:
Expenses 0.65%(1) 0.58%
Net investment income 2.56%(1) 2.74%
Supplemental Data:
Net assets at end of period $1,058,361,915 $1,047,391,315
Number of shares outstanding at
end of period 1,058,512,123 1,047,493,739
</TABLE>
- -------------------------------------------------------------------
(1) Annualized.
(2) Unaudited.
54
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, Inc.
- --------------------------------------------------------------------------------
DEUTSCHE BANC 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.
55
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, Inc.
- --------------------------------------------------------------------------------
Financial Highlights
(For shares outstanding throughout each period)
DEUTSCHE BANC ALEX. BROWN CASH RESERVE
TAX-FREE INSTITUTIONAL SERIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
Period
For the Six For the June 2, 1997(1)
Months Ended Year Ended through
September 30, March 31, March 31,
------------- --------- ---------
1999/3 1999 1998
<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 0.0144 0.0303 0.0273
Less Distributions:
Dividends from net investment
income and short-term gains (0.0144) (0.0303) (0.0273)
------------ ------------ ------------
Net asset value at end of period $ 1.00 $ 1.00 $ 1.00
============ ============ ============
Total Return:
Based on net asset value
per share 1.45% 3.07% 2.76%
Ratios to Average Net Assets:
Expenses 0.35%(2) 0.33% 0.35%(2)
Net investment income 2.87%(2) 3.03% 3.29%(2)
Supplemental Data:
Net assets at end of period $93,911,147 $84,599,738 $76,682,752
Number of shares outstanding
at end of period 93,923,772 84,607,371 76,682,889
</TABLE>
- ----------
(1) Commencement of operations.
(2) Annualized
(3) Unaudited.
56
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
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 five 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"), Quality Cash Reserve Prime Shares ("Quality Cash Shares") and Deutsche
Banc Alex. Brown Cash Reserve Prime Institutional Shares ("Prime Institutional
Shares"). The Treasury Series consists of two classes: Deutsche Banc Alex. Brown
Cash Reserve Treasury Shares ("Treasury Shares") and Deutsche Banc Alex. Brown
Cash Reserve Treasury Institutional Shares ("Treasury Institutional Shares").
The Tax-Free Series consists of two classes: Deutsche Banc Alex. Brown Cash
Reserve Tax-Free Shares ("Tax-Free Shares") and Deutsche Banc 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.
57
<PAGE>
DEUTSCHE BANC 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 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.
NOTE 2--Investment Advisory Fees, Transactions with Affiliates and Other Fees
Investment Company Capital Corp. ("ICC"), a subsidiary of Deutsche Bank, 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.
ICC also provides accounting services to the Fund. As compensation for
these 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 $86,498, the Treasury Series
paid $66,614 and the Tax-Free Series paid $70,885 for accounting services for
the six months ended September 30, 1999.
58
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
NOTE 2--continued
ICC also provides transfer agency services to the Fund. 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 $1,111,923, the Treasury
Series paid $223,260 and the Tax-Free Series paid $112,730 to ICC for transfer
agent services for the six months ended September 30, 1999.
ICC Distributors, Inc., a member of the Forum Group of Companies, ("ICC
Distributors"), provides distribution services to the Fund. As compensation for
these services, the Prime Shares, Flag Investors Class A Shares, Treasury Shares
and the Tax-Free Shares pay ICC Distributors an annual fee equal to 0.25% of
these classes' average daily net assets. For the six months ended September 30,
1999, distribution fees aggregated $4,753,449, $14,357, $915,464 and $1,306,254
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 $230,664 for the six months ended
September 30, 1999 and 1.00% of the Flag Investors Class B Shares' aggregate
average daily net assets or $17,830 for the six months ended September 30, 1999.
ICC Distributors is not related to ICC. ICC and ICC Distributors may
voluntarily waive a portion of their advisory or distribution fees for the
Prime, Treasury and Tax-Free Series to preserve or enhance each series'
performance. These voluntary waivers are not contractual and could change. ICC
did not waive any advisory fees for the six months ended September 30, 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 April 1, 1999 to September 30, 1999.
The Fund's complex offers a retirement plan for eligible Directors. The
actuarially computed pension expense allocated to the Fund for the six months
ended September 30, 1999 was $52,521 for the Prime Series, $16,503 for the
Treasury Series and $7,723 for the Tax-Free Series. The accrued liability at
September 30, 1999 was $290,689 for the Prime Series, $98,861 for the Treasury
Series and $96,569 for the Tax-Free Series.
ICC, an indirect subsidiary of Bankers Trust Corporation ("BT
Corp."), is the Fund's investment advisor. On June 4, 1999,
BT Corp. was acquired by Deutsche Bank AG ("Deutsche Bank"). As a
result of the transaction, ICC became an indirect subsidiary of
Deutsche Bank.
59
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
NOTE 2--concluded
On January 1, 1999 the "Fund" has adopted a Shareholder Service Plan (the
"Plan") for Prime, Treasury and Tax-Free "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 services provided by any Shareholder Servicing
Agent, the Fund pays 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 began waiving a portion of its fees
on the Treasury Series in the amount of 0.05%. Absent such fee waivers,
Management Fees would be 0.25% and Total Fund Operating Expenses would be 0.59%
on the Treasury Shares and Management Fees would be 0.25% and Total Fund
Operating Expenses would be 0.34% on the Treasury 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:
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
September 30, 1999(1) March 31, 1999
-------------------- ---------------
<S> <C> <C>
Prime Series:
Sold:
Prime Shares 13,514,122,041 21,238,313,843
Flag Investors Class A Shares 98,334,734 86,081,920
Flag Investors Class B Shares 7,054,784 8,010,702
Prime Institutional Shares 3,427,597,300 5,126,520,627
Quality Cash Shares 210,239,146 1,143,097,219
Issued as reinvestment of dividends:
Prime Shares 78,188,624 143,654,045
Flag Investors Class A Shares 208,251 385,752
Flag Investors Class B Shares 55,245 55,849
Prime Institutional Shares 7,851,805 12,241,514
Quality Cash Shares 1,537,466 10,243,851
Redeemed:
Prime Shares (13,324,736,425) (20,818,590,880)
Flag Investors Class A Shares (98,453,195) (81,176,425)
Flag Investors Class B Shares (3,192,111) (5,895,153)
Prime Institutional Shares (3,371,950,190) (5,068,292,918)
Quality Cash Shares (223,263,189) (1,298,381,050)
--------------- ---------------
Net increase 323,594,286 496,268,896
=============== ===============
</TABLE>
- ----------
(1) Unaudited.
60
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
NOTE 3--concluded
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
September 30, 1999(1) March 31, 1999
-------------------- --------------
<S> <C> <C>
Treasury Series:
Sold:
Treasury Shares 1,859,625,373 4,361,406,499
Treasury Institutional Shares 190,811,381 826,662,420
Issued as reinvestment of dividends:
Treasury Shares 13,884,671 32,190,535
Treasury Institutional Shares 2,467,738 2,757,290
Redeemed:
Treasury Shares (2,035,284,795) (4,375,328,973)
Treasury Institutional Shares (217,189,270) (805,626,922)
------------- --------------
Net increase (decease) (185,684,902) 42,060,849
============= ==============
Tax-Free Series:
Sold:
Tax-Free Shares 3,338,298,958 5,341,857,730
Tax-Free Institutional Shares 369,635,867 1,008,685,495
Issued as reinvestment of dividends:
Tax-Free Shares 12,375,931 23,390,210
Tax-Free Institutional Shares 519,796 1,157,547
Redeemed:
Tax-Free Shares (3,339,656,505) (5,159,012,230)
Tax-Free Institutional Shares (360,839,263) (1,001,918,516)
------------- --------------
Net increase 20,334,784 214,160,192
============= ==============
</TABLE>
Note 4--Net Assets(1)
<TABLE>
<CAPTION>
Prime Treasury Tax-Free
Series Series Series
-------------- ------------- --------------
<S> <C> <C> <C>
Paid-in capital $4,537,265,313 $753,494,812 $1,152,436,056
Undistributed net investment income
(distribution in excess) 8,345 (44,873) (59,537)
Undistributed net realized gain/(loss)
on sales of investments 87,024 194,873 (103,457)
--------------- ------------- --------------
$4,537,360,682 $753,644,813 $1,152,273,062
=============== ============= ==============
</TABLE>
- ----------
(1) Unaudited.
61
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
Note 5--Capital Loss Carryforwards
At September 30, 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 $52,775 - $6,268 $21,858 $26,991 - - $1,096
</TABLE>
62
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
Note 6--Subsequent Event
On June 4, 1999, Bankers Trust Corporation, the parent company of
Investment Company Capital Corp ("ICC"), the investment advisor to the Fund was
acquired by Deutsche Bank AG. As a result, ICC also became an indirect
wholly-owned subsidiary of Deutsche Bank AG.
A Special Meeting of Shareholders (the "Special Meeting") was held on
October 7, 1999, at which time shareholders voted to approve a new investment
advisory agreement (the "Advisory Agreement") with ICC. Additionally,
shareholders elected the Board of Directors and voted to eliminate or modify
certain fundamental investment restrictions of the Fund.
The results of the shareholder voting at the Special Meeting are as
follows:
<TABLE>
<CAPTION>
Withheld/ Broker
Proposal For Against Abstain Non-Votes
- -------- --- ------- ------- ---------
<S> <C> <C> <C> <C>
Prime Series:
Elect Richard T. Hale 2,486,642,715 18,231,386
Elect Richard R. Burt 2,483,949,933 20,924,168
Elect Joseph R. Hardiman 2,486,503,693 18,370,408
Elect Louis E. Levy 2,484,070,592 20,803,509
Elect Eugene J. McDonald 2,484,456,056 20,418,045
Elect Rebecca W. Rimel 2,484,572,288 20,301,813
Elect Truman T. Semans 2,485,018,646 19,855,455
Elect Robert H. Wadsworth 2,484,690,148 20,183,953
Investment Advisory Agreement
with ICC 2,464,162,742 16,263,731 24,447,628
Eliminate policy regarding investing
for exercising control or management 2,391,371,420 78,146,574 30,051,315 5,304,792
Eliminate policy regarding pledging,
mortgaging or hypothecating assets 2,376,751,127 94,102,855 28,715,327 5,304,792
Eliminate policy regarding investment
in other investment companies 2,391,536,912 79,218,566 28,813,831 5,304,792
Eliminate policy regarding short sales,
purchasing securities on margin, and
investing in puts and calls and
commodities 2,364,466,643 103,338,495 31,764,171 5,304,792
Eliminate policy regarding oil, gas and
mineral leases 2,378,303,653 91,645,404 29,620,252 5,304,792
Modify policy regarding borrowing 2,381,377,496 88,045,672 30,146,141 5,304,792
Modify policy regarding loans 2,371,610,123 98,042,664 29,916,522 5,304,792
</TABLE>
63
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
Note 6--continued
<TABLE>
<CAPTION>
Withheld/ Broker
Proposal For Against Abstain Non-Votes
- -------- --- ------- ------- ---------
<S> <C> <C> <C> <C>
Treasury Series:
Elect Richard T. Hale 467,957,196 3,214,347
Elect Richard R. Burt 468,978,976 2,192,567
Elect Joseph R. Hardiman 468,990,144 2,181,399
Elect Louis E. Levy 468,980,378 2,191,165
Elect Eugene J. McDonald 468,980,378 2,191,165
Elect Rebecca W. Rimel 468,980,378 2,191,165
Elect Truman T. Semans 468,990,144 2,181,399
Elect Robert H. Wadsworth 468,980,378 2,191,165
Investment Advisory Agreement with ICC 464,986,601 2,887,056 3,297,886
Eliminate policy regarding investing for
exercising control or management 457,405,800 8,595,283 5,170,460
Eliminate policy regarding pledging,
mortgaging or hypothecating assets 456,129,091 9,696,467 5,345,985
Eliminate policy regarding investment in
other investment companies 456,222,631 9,679,681 5,269,231
Eliminate policy regarding short sales,
purchasing securities on margin, and
investing in puts and calls and
commodities 455,209,545 10,755,897 5,206,101
Eliminate policy regarding oil, gas and
mineral leases 455,518,045 10,209,949 5,443,549
Modify policy regarding borrowing 456,633,081 9,364,172 5,174,290
Modify policy regarding loans 454,979,168 11,025,116 5,167,259
</TABLE>
64
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND, INC.
- --------------------------------------------------------------------------------
Notes to Financial Statements (concluded)
Note 6--concluded
<TABLE>
<CAPTION>
Withheld/ Broker
Proposal For Against Abstain Non-Votes
- -------- --- ------- ------- ---------
<S> <C> <C> <C> <C>
Tax-Free Series:
Elect Richard T. Hale 746,043,449 3,105,733
Elect Richard R. Burt 744,978,346 4,170,836
Elect Joseph R. Hardiman 745,350,939 3,798,243
Elect Louis E. Levy 745,358,012 3,791,170
Elect Eugene J. McDonald 745,783,778 3,365,404
Elect Rebecca W. Rimel 745,815,288 3,333,894
Elect Truman T. Semans 746,028,373 3,120,809
Elect Robert H. Wadsworth 744,709,170 4,440,012
Investment Advisory Agreement with ICC 730,161,390 3,775,337 15,212,455
Eliminate policy regarding investing for
exercising control or management 720,687,941 13,248,861 15,202,380
Eliminate policy regarding pledging,
mortgaging or hypothecating assets 716,579,620 17,467,147 15,102,415
Eliminate policy regarding investment in
other investment companies 718,195,866 15,895,888 15,057,428
Eliminate policy regarding short sales,
purchasing securities on margin, and
investing in puts and calls and
commodities 715,317,330 18,185,933 15,645,919
Eliminate policy regarding oil, gas and
mineral leases 718,092,298 15,201,842 15,855,042
Modify policy regarding borrowing 716,778,848 16,694,783 15,675,551
Modify policy regarding loans 715,621,654 17,355,686 16,171,842
</TABLE>
65
<PAGE>
IMPORTANT INCOME TAX INFORMATION
Tax-Free Series
---------------
One hundred percent of the dividends paid by the Tax-Free Series of Deutsche
Banc Alex. Brown Cash Reserve Fund, Inc. for the six months ended September 30,
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 Deutsche
Banc Alex. Brown Cash Reserve Fund, Inc. for the six months ended September 30,
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.
66
<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
CHARLES A. RIZZO DANIEL O. HIRSCH
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
130 Liberty Street
New York, NY 10006
- --------------------------------------------------------------------------------
This report is prepared for the general information of shareholders of
Deutsche Banc Alex. Brown Cash Reserve Fund, Inc. It may be distributed only to
current shareholders or to persons who have received a current prospectus.
67
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<PAGE>
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<PAGE>
Deutsche Banc ALEX. BROWN CASH RESERVE PRSRT STD
Fund, Inc. U.S.Postage
P.O. Box 1346 PAID
Baltimore, MD 21203 Lancaster, PA
Permit No. 1793