Deutsche Banc Alex. Brown
DEUTSCHE BANC ALEX.BROWN
CASH RESERVE FUND
Prime Series
Treasury Series
Tax-Free Series
SEMI-ANNUAL REPORT
September 30, 2000
Deutche Bank
[logo omitted]
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FUND FEATURES
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o DAILY DIVIDENDS
The Fund declares dividends daily and distributes them monthly in the form
of additional shares, unless you have elected to have dividends paid in
cash.
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 SEEKS A 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. 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 for retail investors and
$1,000,000 for institutional investors. Subsequent investments may be made
in amounts of $100 or more for retail investors. There is no minimum amount
for subsequent investors by institutional investors purchasing shares in
the same series.
This report is prepared for the general information of shareholders of
Deutsche Banc Alex. Brown Cash Reserve Fund. It may be distributed only to
current shareholders or to persons who have received a current prospectus.
This Fund is not insured by the FDIC and is not a deposit, obligation of or
guaranteed by Deutsche Bank. The Fund is subject to investment risks,
including possible loss of principal amount invested.
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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, 2000. At the end of the period, the Fund's net assets
totaled $8,593,439,504, an increase of more than 33% from September 30, 1999.
The distribution of the Fund's assets among its three series is illustrated in
the following pie chart.
[pie chart omitted]
plot points as follows:
Prime Series Treasury Series Tax-Free Series
$6.2 billion $735 million $1.7 billion
MARKET ACTIVITY
Two major factors impacted the money markets over the semi-annual period --
ongoing strength of the US economy and the actions of the Federal Reserve Board.
These factors combined to push yields on short-term money market securities
significantly higher.
o The US economy continued to expand, causing concern that inflation may be
imminent and that the Federal Reserve Board may continue its tightening
cycle.
o In fact, the Federal Reserve Board followed up its three 1999 interest rate
hikes and two first quarter 2000 rate hikes with another increase on May
16th, bringing the total increase to 1.75%. Since then, the Federal Reserve
Board has chosen not to raise interest rates, primarily based on signs that
the economy may be slowing. On September 30, 2000, the targeted federal funds
rate stood at 6.50%.
To a less dramatic degree, the municipal markets followed a similar trend
as their taxable counterparts, with yields rising as ongoing US economic
strength and Federal Reserve Board tightening imposed pressure.
o The yield on one-year municipal notes rose 0.16%, to 4.31% on September 30,
2000, from 4.15% on March 31, 2000.
o There remained a compelling lack of supply through most of the semi-annual
period. The state of California announced that due to the strength of its
economy, its annual note issuance, recently in excess of $1 billion, would
not be necessary at all this year. As a result of California's strong revenue
growth as well as strong economic performance in other municipalities across
the nation, supply of one-year notes was down 18% in the third calendar
quarter compared to one year prior.
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LETTER TO SHAREHOLDERS (CONTINUED)
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o During the third calendar quarter, the lower supply of one-year notes and the
increase in demand for municipal securities offset the upward pressures on
yields, and yields on one-year tax-exempt paper actually fell slightly.
o The sustained national expansion, now in its tenth year, has resulted in
greater economic diversity, increased financial flexibility and still healthy
tax coffers in many locales. Thus, municipal credit quality remained solid
across most tax-exempt sectors.
INVESTMENT REVIEW
We continue to manage the Fund conservatively, maintaining high portfolio
quality, adjusting weighted average maturities in response to market conditions,
and strictly limiting exposure to any particular issuer. 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 have each received a "AAAm" rating*. This rating is the highest that S&P
awards to money market funds.
PRIME SERIES
Our strategy in this Series continued to be concentrated on investing in
high quality issues. As of September 30, 2000, 62% of the Series was invested in
securities rated A1+/P1 and 38% in securities rated A1/P1, by S&P and Moody's.
The Series' performance can be attributed to the "barbell" strategy we
instituted toward the end of 1999 and maintained throughout this semi-annual
period. By combining a high percentage of floating rate notes, longer-dated
securities, and short-term paper, we were able not only to take advantage of the
steep yield curve but also to capture the higher yields that became available
each time the Federal Reserve Board increased interest rates.
As of September 30, 2000, 64.2% of the Series was invested in US commercial
paper, 20.3% in corporate floating rate securities, 8.8% in euro time deposits,
1.8% in Yankee certificates of deposit, 1.8% in euro-dollar certificates of
deposit, 2.0% in US certificates of deposit, 0.1% in US medium-term notes, 0.1%
in interest-bearing commercial paper, and 0.9% in cash.
TREASURY SERIES
The short-term Treasury market was very expensive in the first half of the
semi-annual period. A combination of investors' decisions to stay on the
sidelines to avoid volatile markets during an increasing interest rate
environment, the cutback of overall issuance of Treasury securities, and the
government's Treasury buyback program all contributed to this strong technical
condition of the market.
----------
* Ratings are subject to change and do not remove market risk.
2
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WEIGHTED AVERAGE MATURITY (AS OF SEPTEMBER 30, 2000)
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DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND PRIME SERIES 53 DAYS
iMoneyNet-First Tier Retail Money Funds Average 54 days
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DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND TREASURY SERIES 55 DAYS
iMoneyNet-Treasury and Repo Retail Money Funds Average 64 days
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DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND TAX-FREE SERIES 44 DAYS
iMoneyNet-National Retail Tax-Free Money Funds Average 44 days
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Source: IBC/Donoghue, Inc. "Money Fund Report."
The Money Fund Averages are average maturities of all funds in their respective
categories.
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PERFORMANCE
(FOR THE 7-DAY CURRENT YIELD AT SEPTEMBER 30, 2000)
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DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND PRIME SERIES 6.07%
iMoneyNet-First Tier Retail Money Fund Average 5.91%
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DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND TREASURY SERIES 5.65%1
iMoneyNet-Treasury and Repo Retail Money Fund Average 5.72%
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DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND TAX-FREE SERIES2 4.12%
iMoneyNet-National Retail Tax-Free Money Fund Average 3.77%
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PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Yields will fluctuate.
Money Fund Report Averages, a service of iMoneyNet, Inc., are averages for
categories of similar money market funds. Averages do not reflect expenses,
which have been deducted from the Fund's yield.
1 The investment advisor has contractually agreed to waive part of its fees
until July 31, 2001. Without such fee waivers the 7-day current yield would
have been 5.60%.
2 For certain investors a portion of the Fund's income may be subject to the
federal alternative minimum tax. Distribution of the Fund's income may be
subject to state and local taxes.
Early July brought a welcome reprieve, as the US Treasury temporarily
increased the size of its weekly bill issuance and issued two cash management
bills. As the amount of Treasuries outstanding decreases due to its surplus,
cash management bills will likely play an increasing role in the Treasury.
Furthermore, whether or not cash management bills are outstanding may cause
greater volatility in the short-term Treasury market in the months ahead, and as
a result, we expect to see increased fluctuation in the yield of this Series.
At the end of the semi-annual period, approximately 42.1% of the portfolio
was invested in short-term Treasury bills, 57.2% in short-term Treasury notes
and bonds, and 0.7% in cash.
3
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LETTER TO SHAREHOLDERS (CONCLUDED)
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TAX-FREE SERIES
We actively adjusted the Series' relative maturity position during the
semi-annual period in anticipation of seasonal cash flow and supply/demand
phenomena. For example, in April, the short end of the municipal money market
curve became very attractive based on outflows associated with tax season. Tax
season selling pressure continued unabated through the first two weeks of May,
and this lack of demand kept pressure on short-term tax-exempt rates. Thus, we
made select purchases in the 10- to 12-month range to pick up attractive yields
without extending the Series' neutral maturity position. In June, we made small
purchases of nine-month paper at yields above comparable credit quality one-year
paper. The portfolio's weighted average maturity was extended slightly from 42
days to 46 days.
In July, large seasonal cash inflows, due to principal and interest
payments, increased demand for money market eligible paper, but supply continued
to decrease, putting pressures on variable rate demand notes and resulting in a
decline in short-term tax-exempt yields. The large inflows proved to be
temporary, as assets ended the month equal to the prior month's total. In spite
of the asset volatility, the Series made select purchases of actively traded,
very liquid one-year notes, without significantly extending its weighted average
maturity beyond 49 days.
During August, the Series' weighted average maturity rolled down a bit to
48 days, as assets increased. An increase in demand for money market eligible
paper and a lower expectation for further Federal Reserve Board monetary policy
changes in the near term moved one-year note yields down slightly. Although the
Federal Reserve Board in fact did not make any changes to monetary policy in
September, it did maintain a tightening bias, and so we remained cautious. The
Series' weighted average maturity drifted towards a neutral range, ending the
semi-annual period at 44 days.
At the end of the semi-annual period, 63.5% of the Series was invested in
municipal variable rate demand notes, 19.2% in municipal commercial paper, 6.9%
in municipal general obligations, 3.2% in municipal revenue bonds, 3.8% in
municipal tax revenue anticipation notes, 1.6% in put bonds, 1.1% in municipal
bond anticipation notes, 0.5% in municipal revenue anticipation notes, and 0.2%
in municipal tax anticipation notes. It is also well worth noting that while
supply of tax-free securities remained low over the semi-annual period, the Fund
was able to maintain its high quality portfolio. As measured by S&P, upgrades
outpaced down-grades in the municipal market for 20 straight quarters, as of
September 30, 2000.
4
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LOOKING AHEAD
Going forward, we expect the "soft landing" scenario -- slower economic
growth without inflation -- to play out. While the Federal Reserve Board seems
to be on hold for now, the larger question for them may be whether or not this
slowdown is temporary or if it is a longer lasting downturn. One key indicator
to monitor will be oil prices, as the current higher prices are noticeably
diminishing consumer purchasing power and slowing demand in the economy.
In the Prime Series and Treasury Series, then, since we do not feel the
Federal Reserve Board will move rates for the next few months, we intend to
manage the portfolios with a slightly longer duration than we did during the
semi-annual period just ended. Of course, we will carefully monitor the economic
numbers and inflation data to see whether or not the economic slowdown is
long-standing.
In the Tax-Free Series, we intend to maintain a neutral to short weighted
average maturity, given the uncertainty that still lingers regarding the Federal
Reserve Board's monetary policy actions and the potential for higher inflation.
We will also continue to focus on the highest quality investments while still
seeking competitive yields. In fact, in each of our Series, we will continue to
seek to concentrate the portfolios in very high quality credits and maintain our
conservative investment strategies and standards for the foreseeable future.
We continue to believe in the conservative approach that we apply to
investing on behalf of the Fund's Series and will continue to seek competitive
yields for our shareholders.
As always, we appreciate your continued support.
Sincerely,
/S/SIGNATURE DARLENE M. RASEL, STEVEN BOYD
Darlene M. Rasel Steven Boyd
Portfolio Manager of the Portfolio Manager of the
Prime and Treasury Series Tax-Free Series
September 30, 2000
5
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DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
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SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
(UNAUDITED)
Rating
--------------- Par Market
PRIME SERIES S&P Moody's (000) Value
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Commercial Paper(a) -- 64.3%
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AIRCRAFT & AEROSPACE -- 2.0%
BAE Systems Holdings Inc.:
6.50% 11/20/00 ............ A-1 P-1 $73,428 $ 72,778,366
6.48% 12/11/00 ............ A-1 P-1 48,570 47,958,018
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120,736,384
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ASSET BACKED COMMERCIAL PAPER -- 18.2%
Asset Portfolio Funding Corporation:
6.53% 10/16/00 ............ A-1+ P-1 50,000 49,873,028
6.70% 12/6/00 ............. A-1+ P-1 40,000 39,516,111
Bavaria TRR Corporation,
6.52% 10/11/00 ............ A-1 P-1 20,000 19,967,400
Compass Securitization LLC:
6.52% 10/10/00 ............ A-1+ P-1 57,620 57,536,515
6.55% 10/16/00 ............ A-1+ P-1 12,600 12,567,905
6.55% 10/18/00 ............ A-1+ P-1 40,000 39,883,556
6.52% 10/20/00 ............ A-1+ P-1 14,261 14,214,509
6.51% 11/10/00 ............ A-1+ P-1 10,000 9,929,475
Corporate Asset Funding Co., Inc.,
6.50% 11/22/00 ............ A-1+ P-1 50,000 49,539,583
Corporate Receivables Corporation:
6.56% 11/9/00 ............. A-1+ P-1 30,000 29,792,267
6.50% 11/21/00 ............ A-1+ P-1 25,000 24,774,306
Delaware Funding Corporation:
6.57% 10/4/00 ............. A-1+ P-1 40,000 39,985,400
6.70% 10/4/00 ............. A-1+ P-1 85,000 84,968,361
6.50% 11/15/00 ............ A-1+ P-1 30,000 29,761,667
Moriarty Ltd.:
6.56% 10/11/00 ............ A-1+ P-1 25,000 24,959,000
6.62% 1/24/01 ............. A-1+ P-1 10,000 9,790,367
Old Line Funding Corporation:
6.51% 10/25/00 ............ A-1+ P-1 33,641 33,501,081
6.51% 10/26/00 ............ A-1+ P-1 30,000 29,869,800
Receivables Capital Corporation:
6.51% 11/14/00 ............ A-1+ P-1 20,000 19,844,483
6.50% 11/17/00 ............ A-1+ P-1 33,000 32,725,917
Sheffield Receivables Corporation:
6.51% 10/10/00 ............ A-1+ P-1 50,000 49,927,667
6.51% 10/17/00 ............ A-1+ P-1 12,100 12,067,179
6.52% 10/20/00 ............ A-1+ P-1 30,000 29,902,200
6.51% 10/23/00 ............ A-1+ P-1 39,500 39,349,999
6.50% 11/20/00 ............ A-1+ P-1 40,000 39,646,111
6.63% 1/8/01 .............. A-1+ P-1 57,800 56,756,806
6.50% 3/2/01 .............. A-1+ P-1 10,000 9,727,361
6
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DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
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Rating
------------- Par Market
S&P Moody's (000) Value
-------------------------------------------------------------------------------
COMMERCIAL PAPER (continued)
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ASSET BACKED COMMERCIAL PAPER (CONTINUED)
Tulip Funding Corporation:
6.55% 10/10/00 ............ A-1+ P-1 $35,000 $ 34,949,056
6.52% 10/11/00 ............ A-1+ P-1 25,000 24,959,250
6.55% 10/25/00 ............ A-1+ P-1 40,000 39,832,611
6.53% 10/30/00 ............ A-1+ P-1 25,000 24,873,028
6.52% 11/27/00 ............ A-1+ P-1 45,000 44,543,600
Windmill Funding Corporation:
6.54% 10/19/00 ............ A-1+ P-1 30,000 29,907,350
6.52% 10/20/00 ............ A-1+ P-1 30,000 29,902,200
--------------
1,119,345,149
--------------
AUTOMOBILES & TRUCKS -- 1.8%
American Honda Finance Corporation,
6.49% 11/20/00 ............ A-1+ P-1 30,000 29,734,992
General Motors Acceptance Corporation,
6.51% 1/10/01 ............. A-1 P-1 24,175 23,737,835
Toyota Motor Credit Corporation:
6.53% 10/20/00 ............ A-1+ P-1 30,000 29,902,050
6.48% 11/22/00 ............ A-1+ P-1 17,500 17,339,350
Volkswagen of America,
6.50% 11/27/00 ............ A-1 P-1 12,500 12,373,611
--------------
113,087,838
--------------
BANKS -- 0.7%
Danske Bank Corporation,
6.68% 11/13/00 ............ A-1 P-1 16,000 15,875,307
Santander Finance Inc.,
6.53% 2/5/01 .............. A-1 P-1 30,000 29,314,350
--------------
45,189,657
--------------
BEVERAGES -- SOFT DRINKS -- 1.0%
Coca Cola Enterprises Inc.:
6.50% 11/21/00 ............ A-1 P-1 40,000 39,638,889
6.50% 12/14/00 ............ A-1 P-1 25,000 24,670,486
--------------
64,309,375
--------------
CONGLOMERATES -- 0.5%
Honeywell International Inc.:
6.50% 11/27/00 ............ A-1 P-1 20,000 19,797,778
6.47% 12/21/00 ............ A-1 P-1 13,200 13,010,213
--------------
32,807,991
--------------
COMPUTERS -- 0.8%
Hewlett Packard Co.,
6.50% 10/11/00 ............ A-1+ P-1 48,000 47,922,000
--------------
7
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DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2000
(UNAUDITED)
Rating
------------- Par Market
PRIME SERIES (continued) S&P Moody's (000) Value
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COMMERCIAL PAPER (continued)
--------------------------------------------------------------------------------
CONSUMER PRODUCTS -- 2.7%
Unilever Capital Corporation:
6.52% 11/2/00 ............. A-1 P-1 $40,000 $ 39,775,422
6.50% 11/3/00 ............. A-1 P-1 70,000 69,595,556
6.51% 11/3/00 ............. A-1 P-1 60,000 59,652,800
-------------
169,023,778
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ELECTRICAL & ELECTRONICS -- 0.8%
Invensys PLC,
6.52% 11/9/00 ............. A-1 P-2 20,000 19,862,356
Motorola Inc.,
6.55% 11/28/00 ............ A-1 P-1 29,400 29,095,098
-------------
48,957,454
-------------
FINANCE, CONSUMER -- 1.6%
Associates First Capital Corporation:
6.53% 1/19/01 ............. A-1 P-1 17,000 16,663,886
6.52% 2/23/01 ............. A-1 P-1 20,000 19,478,400
Citi Group Inc.,
6.535% 11/14/00 ............ A-1 P-1 40,000 39,687,772
Fortis Funding LLC,
6.51% 2/16/01 ............. A-1+ P-1 20,800 20,284,697
-------------
96,114,755
-------------
FINANCE, DIVERSIFIED -- 6.7%
Associates Corporation of North America:
6.53% 1/23/01 ............. A-1 P-1 20,000 19,590,061
6.53% 1/24/01 ............. A-1 P-1 25,000 24,483,042
6.53% 1/25/01 ............. A-1 P-1 25,000 24,478,507
Cregem North America, Inc.:
6.54% 1/17/01 ............. A-1 P-1 20,000 19,611,233
6.54% 1/26/01 ............. A-1 P-1 25,000 24,473,167
General Electric Capital International
Funding Inc.:
6.54% 10/17/00 ............ A-1+ P-1 24,000 23,934,600
6.53% 1/25/01 ............. A-1+ P-1 9,900 9,693,489
6.52% 1/26/01 ............. A-1+ P-1 25,000 24,474,778
6.50% 2/13/01 ............. A-1+ P-1 15,000 14,637,083
6.51% 2/27/01 ............. A-1+ P-1 45,000 43,795,650
General Electric Capital Corporation:
6.51% 10/27/00 ............ A-1+ P-1 20,000 19,909,583
6.52% 1/17/01 ............. A-1+ P-1 40,000 39,224,844
6.52% 1/26/01 ............. A-1+ P-1 30,000 29,369,733
6.50% 1/29/01 ............. A-1+ P-1 40,000 39,140,556
6.53% 2/8/01 .............. A-1+ P-1 40,000 39,064,033
6.49% 2/22/01 ............. A-1+ P-1 15,000 14,613,304
-------------
410,493,663
-------------
8
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DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
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Rating
------------- Par Market
S&P Moody's (000) Value
-------------------------------------------------------------------------------
COMMERCIAL PAPER (continued)
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FINANCIAL SERVICES -- 3.2%
Credit Suisse First Boston Inc.:
6.56% 1/24/01 ............. A-1+ P-1 $35,000 $ 34,272,933
6.50% 3/13/01 ............. A-1+ P-1 40,000 38,830,000
Goldman Sachs & Co.,
6.56% 1/19/01 ............. A-1+ P-1 40,000 39,205,511
Salomon Smith Barney Holdings Inc.:
6.54% 10/10/00 ............ A-1 P-1 50,000 49,927,333
6.50% 10/20/00 ............ A-1 P-1 33,000 32,892,750
-------------
195,128,527
-------------
FOODS -- 0.8%
Diageo PLC,
6.52% 1/17/01 ............. A-1 P-1 50,000 49,031,056
-------------
HOLDING COMPANIES -- 2.0%
Bank of America Corporation:
6.26% 10/3/00 ............. A-1 P-1 30,000 29,994,783
6.68% 12/4/00 ............. A-1 P-1 30,000 29,649,300
6.57% 1/18/01 ............. A-1 P-1 40,000 39,211,600
6.50% 3/1/01 .............. A-1 P-1 25,000 24,322,917
-------------
123,178,600
-------------
INSURANCE, PROPERTY AND CASUALTY -- 5.6%
Aegon Funding Corporation:
6.70% 10/2/00 ............. A-1+ P-1 70,000 70,000,000
6.20% 12/1/00 ............. A-1+ P-1 30,000 29,690,000
6.52% 2/13/01 ............. A-1+ P-1 30,000 29,271,933
Prudential Funding Corporation,
6.50% 10/10/00 ............ A-1 P-1 50,000 49,927,778
Teachers Insurance and Annuity
Association of America:
6.70% 10/2/00 ............. A-1+ P-1 60,000 60,000,000
6.61% 10/6/00 ............. A-1+ P-1 30,000 29,977,967
Transamerica Finance Corporation:
6.53% 10/17/00 ............ A-1 P-1 43,700 43,581,100
6.50% 11/10/00 ............ A-1 P-1 15,000 14,894,375
6.50% 12/12/00 ............ A-1 P-1 18,520 18,282,584
-------------
345,625,737
-------------
MACHINERY & MACHINE TOOLS -- 0.4%
Illinois Tool Works Inc.,
6.47% 12/12/00 ............ A-1+ P-1 25,000 24,680,993
-------------
9
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DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2000
(UNAUDITED)
Rating
------------- Par Market
PRIME SERIES (continued) S&P Moody's (000) Value
--------------------------------------------------------------------------------
COMMERCIAL PAPER (continued)
--------------------------------------------------------------------------------
MINING -- 2.8%
Rio Tinto America Inc.:
6.50% 10/4/00 ............. A-1+ P-1 $34,217 $ 34,204,644
6.51% 10/10/00 ............ A-1+ P-1 30,000 29,956,600
6.51% 11/6/00 ............. A-1+ P-1 25,815 25,651,613
6.51% 11/15/00 ............ A-1+ P-1 50,000 49,602,167
6.49% 11/22/00 ............ A-1+ P-1 31,205 30,918,096
-------------
170,333,120
-------------
PHARMACEUTICAL -- 1.6%
Merck & Co., Inc.,
6.68% 10/2/00 ............. A-1+ P-1 15,007 15,007,000
Pfizer, Inc.,
6.48% 11/6/00 ............. A-1+ P-1 25,000 24,842,500
Pharmacia Corporation:
6.50% 10/16/00 ............ A-1 P-1 19,250 19,201,340
6.50% 10/27/00 ............ A-1 P-1 39,500 39,321,701
-------------
98,372,541
-------------
PUBLISHING -- 0.1%
Gannett Co., Inc.,
6.49% 11/8/00 ............. A-1+ P-1 6,200 6,158,644
-------------
TELEPHONE -- 9.3% Alcatel S.A.:
6.55% 11/3/00 ............. A-1 P-1 33,000 32,807,867
6.61% 2/7/01 .............. A-1 P-1 20,000 19,529,956
AT & T Corporation:
6.50% 1/25/01 ............. A-1+ P-1 30,000 29,377,083
6.51% 2/14/01 ............. A-1+ P-1 30,000 29,267,625
Bell Atlantic Financial Services Inc.,
6.52% 10/11/00 ............ A-1 P-1 30,000 29,951,100
British Telecomunications PLC:
6.27% 10/11/00 ............ A-1+ P-1 20,000 19,968,650
6.25% 10/12/00 ............ A-1+ P-1 16,746 16,716,927
6.71% 11/8/00 ............. A-1+ P-1 17,000 16,882,761
6.22% 12/4/00 ............. A-1+ P-1 30,000 29,673,450
6.52% 2/12/01 ............. A-1+ P-1 20,000 19,518,244
France Telecom S.A.:
6.51% 10/12/00 ............ A-1+ P-1 43,900 43,820,614
6.49% 10/30/00 ............ A-1+ P-1 54,200 53,926,410
6.50% 11/9/00 ............. A-1+ P-1 31,348 31,132,918
6.52% 12/4/00 ............. A-1+ P-1 35,000 34,600,650
10
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
Rating
------------- Par Market
S&P Moody's (000) Value
--------------------------------------------------------------------------------
COMMERCIAL PAPER (continued)
--------------------------------------------------------------------------------
TELEPHONE (CONTINUED)
Verizon Global Funding:
6.50% 10/6/00 ............. A-1 P-1 $22,395 $ 22,378,826
6.50% 10/24/00 ............ A-1 P-1 39,658 39,500,470
6.49% 11/17/00 ............ A-1 P-1 20,670 20,498,588
6.49% 11/20/00 ............ A-1 P-1 47,895 47,471,914
6.49% 11/21/00 ............ A-1 P-1 19,500 19,324,229
6.49% 11/28/00 ............ A-1 P-1 15,000 14,845,863
--------------
571,194,145
--------------
UTILITIES -- 1.7%
National Rural Utilities CFC:
6.48% 11/29/00 ............ A-1+ P-1 16,400 16,228,784
6.22% 12/1/00 ............. A-1+ P-1 25,000 24,740,833
6.47% 3/14/01 ............. A-1+ P-1 18,600 18,055,118
6.45% 3/29/01 ............. A-1+ P-1 48,000 46,469,200
--------------
105,493,935
--------------
TOTAL COMMERCIAL PAPER (Amortized Cost $3,957,185,342) 3,957,185,342
--------------
--------------------------------------------------------------------------------
FLOATING RATE - NOTE -- 20.3%
--------------------------------------------------------------------------------
American Express Co.:
6.582% 2/23/01 ............. A-1 P-1 30,000 30,000,000
6.59% 5/9/01 .............. A-1 P-1 25,000 25,000,000
Associates Corporation of North America:
6.564% 1/12/01 ............. A-1 P-1 30,000 29,998,174
6.523% 3/16/01 ............. A-1 P-1 65,000 64,978,353
AT & T Corporation:
6.56% 3/8/01 .............. A-1+ P-1 60,000 59,994,985
6.63% 6/14/01 ............. A-1+ P-1 15,000 14,997,044
Bank of America Corporation,
6.73% 1/25/01 ............. A-1 P-1 35,000 35,000,000
Bayerishe Hypotheka Vereinsbank,
6.537% 2/26/01 ............. A-1+ P-1 50,000 49,990,145
Bayerische Landesbank Girozentrale:
6.585% 11/9/00 ............. A-1+ P-1 40,000 39,998,892
6.54% 2/28/01 ............. A-1+ P-1 40,000 39,992,029
6.541% 3/1/01 .............. A-1+ P-1 40,000 39,991,961
Chase Manhattan Corporation:
7.002% 11/2/00 ............. A-1 P-1 35,000 35,009,643
6.94% 11/17/00 ............ A-1 P-1 15,000 15,005,496
Commerzbank A.G.:
6.564% 4/20/01 ............. A-1+ P-1 25,000 24,995,967
6.571% 4/26/01 ............. A-1+ P-1 25,000 24,995,852
Compass Securitization LLC,
6.603% 10/16/00 ............ A-1+ P-1 25,000 24,999,858
11
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2000
(UNAUDITED)
Rating
------------- Par Market
PRIME SERIES (continued) S&P Moody's (000) Value
--------------------------------------------------------------------------------
FLOATINGRATE- NOTE (continued)
--------------------------------------------------------------------------------
Credit Agricole Indosuez S.A.,
6.61% 11/8/00 ............. A-1+ P-1 $35,000 $ 34,999,965
Credit Suisse First Boston, Inc.,
6.68% 2/20/01 ............. A-1+ P-1 30,000 29,998,854
Federal National Mortgage Association:
6.45% 11/17/00 ............ A-1 P-1 10,000 9,998,630
6.461% 11/22/00 ............ A-1 P-1 15,000 14,998,328
Ford Motor Credit Co.,
6.64% 11/22/00 ............ A-1 P-1 35,000 35,000,147
Goldman Sachs Group, Inc.,
6.898% 1/25/01 ............. A-1+ P-1 40,000 40,022,924
J.P. Morgan Securities, Inc.,
6.613% 3/16/01 ............. A-1 P-1 60,000 60,000,000
John Deere B.V.,
6.643% 10/20/00 ............ A-1 P-1 15,000 15,002,329
Merrill Lynch & Co. Inc.:
7.03% 1/12/01 ............. A-1 P-1 35,000 35,033,574
6.603% 4/17/01 ............. A-1 P-1 50,000 49,997,130
6.603% 4/18/01 ............. A-1 P-1 30,000 29,998,405
6.81% 9/10/01 ............. A-1 P-1 20,000 20,013,858
Morgan Stanley Dean Witter & Co.:
6.21% 12/18/00 ............ A-1+ P-1 30,000 30,000,000
6.775% 1/29/01 ............. A-1+ P-1 55,000 55,000,000
6.603% 3/16/01 ............. A-1+ P-1 55,000 55,000,000
National Rural Utilities CFC,
6.62% 6/15/01 ............. A-1+ P-1 13,000 13,000,000
SBC Communications Inc.:
6.661% 5/1/01 .............. A-1+ P-1 30,000 30,000,000
6.63% 5/15/01 ............. A-1+ P-1 15,000 14,999,099
Societe Generale,
6.568% 1/19/01 ............. A-1+ P-1 45,000 44,992,030
West Deutsche Landesbank Girozentrale,
6.542% 2/26/01 ............. A-1+ P-1 55,000 54,989,159
Westpac Banking Corporation,
6.61% 9/13/01 ............. A-1+ P-1 25,000 24,996,509
--------------
TOTAL FLOATING RATE - NOTE (Amortized Cost $1,252,989,340) ...... 1,252,989,340
--------------
--------------------------------------------------------------------------------
CERTIFICATE OF DEPOSIT -- 2.0%
--------------------------------------------------------------------------------
Bank of America N.A.,
6.67% 10/6/00 ............. A-1+ P-1 20,000 20,000,000
6.87% 1/19/01 ............. A-1+ P-1 30,000 30,000,000
First Union National Bank of N.C.,
6.95% 10/23/00 ............ A-1 P-1 31,000 31,000,000
12
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
Rating
------------- Par Market
S&P Moody's (000) Value
--------------------------------------------------------------------------------
CERTIFICATE OF DEPOSIT -- (continued)
--------------------------------------------------------------------------------
Suntrust Bank Inc.,
6.64% 10/10/00 ............ A-1 P-1 $40,000 $ 40,000,000
--------------
TOTAL CERTIFICATE OF DEPOSIT (Amortized Cost $121,000,000) 121,000,000
--------------
--------------------------------------------------------------------------------
EURO TIME DEPOSIT-CAYMAN -- 8.8%
--------------------------------------------------------------------------------
Banca Commerciale Italiana Spa,
6.69% 1/29/01 ............. A-1 P-1 25,000 25,000,000
Banque Bruxelles Lambert,
6.50% 10/6/00 ............. A-1+ P-1 25,000 25,000,000
Bayerishe Hypotheka Vereinsbank:
6.75% 2/26/01 ............. A-1+ P-1 45,000 45,000,000
6.92% 3/26/01 ............. A-1+ P-1 25,000 25,000,000
Commerzbank A.G.,
7.04% 11/20/00 ............ A-1+ P-1 30,000 30,000,000
Credit Agricole Indosuez S.A.,
6.67% 10/13/00 ............ A-1+ P-1 50,000 50,000,000
Credit Commercial De France,
6.70% 2/28/01 ............. A-1 P-1 40,000 40,000,000
Dexia Public Finance Bank S.A.,
6.68% 11/3/00 ............. A-1+ P-1 40,000 40,000,000
First Union National Bank of N.C.,
6.97% 10/26/00 ............ A-1 P-1 25,000 25,000,000
ING Bank N.V.,
6.60% 12/7/00 ............. A-1+ P-1 25,000 25,000,000
Landesbank Baden Wurttemberg:
6.68% 10/13/00 ............ A-1+ P-1 50,000 50,000,000
6.75% 2/28/01 ............. A-1+ P-1 40,000 40,000,000
Norddeutsche Landesbank Girozentrale,
6.70% 1/19/01 ............. A-1+ P-1 40,000 40,000,000
Paribas SA,
6.50% 10/6/00 ............. A-1 P-1 40,000 40,000,000
Suntrust Bank Inc.,
6.625% 10/2/00 ............. A-1 P-1 16,480 16,480,000
Wells Fargo Bank
6.71% 1/16/01 ............. A-1+ P-1 25,000 25,000,000
--------------
TOTAL EURO TIME DEPOSIT-CAYMAN (Amortized Cost $541,480,000) ... 541,480,000
--------------
--------------------------------------------------------------------------------
FNMA -- 0.1%
--------------------------------------------------------------------------------
Federal National Mortgage Association,
6.35% 2/2/01 .............. A-1+ P-1 5,000 4,998,219
--------------
TOTAL FNMA (Amortized Cost $4,998,219) ......................... 4,998,219
--------------
13
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED) SEPTEMBER 30, 2000
(UNAUDITED)
Rating
------------- Par Market
PRIME SERIES (concluded) S&P Moody's (000) Value
--------------------------------------------------------------------------------
EURODOLLAR CERTIFICATES OF DEPOSIT -- 1.8%
--------------------------------------------------------------------------------
Bank Austria A.G.,
6.69% 10/24/00 ............ A-1+ P-1 $30,000 $ 30,000,677
Landesbank Baden Wurttemberg,
6.65% 10/31/00 ............ A-1+ P-1 30,000 30,000,000
Norddeutsche Landesbank Girozentrale,
6.82% 1/8/01 .............. A-1+ P-1 25,000 25,001,323
Svenska Handelsbanken Inc.,
6.60% 12/29/00 ............ A-1 P-1 25,000 25,000,601
--------------
TOTAL EURODOLLAR CERTIFICATES OF DEPOSIT
(Amortized Cost $110,002,601) ................................ 110,002,601
--------------
--------------------------------------------------------------------------------
YANKEE CERTIFICATES OF DEPOSIT -- 1.8%
--------------------------------------------------------------------------------
Bank Austria A.G.,
6.55% 2/1/01 .............. A-1+ P-1 10,000 9,998,412
Bank of Nova Scotia,
6.742% 2/16/01 ............. A-1 P-1 23,000 22,996,302
BNP Paribas,
6.70% 2/20/01 ............. A-1 P-1 20,000 19,996,335
Bayerishe Hypotheka Vereinsbank,
6.77% 2/22/01 ............. A-1+ P-1 20,000 19,996,285
Commerzbank A.G.,
6.70% 2/20/01 ............. A-1+ P-1 15,000 14,997,252
Svenska Handelsbanken Inc.,
6.77% 3/21/01 ............. A-1 P-1 25,000 24,995,583
--------------
TOTAL YANKEE CERTIFICATES OF DEPOSIT (Amortized Cost $112,980,169) 112,980,169
--------------
TOTAL INVESTMENTS (Amortized Cost $6,100,635,671) ..... 99.1% $6,100,635,671
OTHER ASSETS IN EXCESS OF LIABILITIES ................. 0.9 59,874,340
----- --------------
NET ASSETS ............................................ 100.0% $6,160,510,011
===== ==============
------------
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.
MOODY'S RATINGS:
P-1 Commercial paper bearing this designation is of the best quality.
P-2 Commercial paper bearing this designation have a strong ability for
repayment of senior short-term debt obligations.
S&P RATINGS:
A-1 Commercial paper that has a strong degree of safety regarding timely
payment. Those issues determined to possess very strong safety
characteristics are denoted with a plus (+) sign.
A DETAILED DESCRIPTION OF THE ABOVE RATINGS CAN BE FOUND IN THE FUND'S
STATEMENT OF ADDITIONAL INFORMATION.
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
(UNAUDITED)
Maturity Par
TREASURY SERIES Date (000) Value
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
US TREASURY BILLSa -- 42.1%
--------------------------------------------------------------------------------
5.965% ........................... 10/12/00 $ 6,345 $ 6,334,487
5.985% ........................... 10/12/00 2,585 2,580,702
6.075% ........................... 10/12/00 7,170 7,157,901
6.09% ............................ 10/12/00 10,635 10,617,009
6.145% ........................... 10/12/00 27,000 26,953,912
5.90% ............................ 10/26/00 130 129,489
5.985% ........................... 10/26/00 43,830 43,655,118
5.93% ............................ 11/9/00 15,180 15,084,982
5.94% ............................ 11/9/00 8,660 8,605,702
6.10% ............................ 11/24/00 28,000 27,748,544
6.135% ........................... 11/24/00 30,420 30,145,244
6.14% ............................ 11/24/00 45,000 44,593,225
6.135% ........................... 11/30/00 45,000 44,547,544
5.985% ........................... 12/7/00 24,730 24,458,650
6.105% ........................... 12/7/00 17,355 17,160,754
------------
TOTAL US TREASURY BILLS (Amortized Cost $309,773,263) ............ $309,773,263
------------
--------------------------------------------------------------------------------
US TREASURY NOTES -- 57.2%
--------------------------------------------------------------------------------
4.00% ............................ 10/31/00 138,975 138,729,840
5.75% ............................ 11/15/00 158,345 158,234,389
4.625% ........................... 11/30/00 22,985 22,922,567
4.50% ............................ 1/31/01 62,830 62,444,392
5.25% ............................ 1/31/01 28,000 27,893,606
5.375% ........................... 2/15/01 10,000 9,965,801
------------
TOTAL US TREASURY NOTES (Amortized Cost $420,190,595) $420,190,595
------------
TOTAL INVESTMENTS (Amortized Cost $729,963,858) ........ 99.3% $729,963,858
OTHER ASSETS IN EXCESS OF LIABILITIES .................. 0.7 5,262,716
----- ------------
TOTALNET ASSETS ........................................ 100.0% $735,226,574
===== ============
--------------------
a US Treasury Bills are traded on a discount basic. The interest rate shown
represents the yield at the purchase date.
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
(UNAUDITED)
Rating
--------------- Par Market
TAX-FREE SERIES S&P Moody's (000) Value
--------------------------------------------------------------------------------
ALABAMA -- 0.9%
--------------------------------------------------------------------------------
Alabama Housing Finance Authority,
Multi-family Housing, Refunding RB,
(Heatherbrooke Project),
(Guaranteed by FNMA), Variable Rate
Weekly
Demand Note, 5.60%, 6/15/26a ...... A-1+ -- $ 9,900 $ 9,900,000
Alabama Housing Finance Authority,
Multi-family Housing, Refunding RB,
(Rime Village Hoover Project),
(Guaranteed by FNMA), Variable Rate
Weekly Demand Note,
5.60%, 6/15/26a ................... A-1+ -- 5,800 5,800,000
-----------
15,700,000
-----------
--------------------------------------------------------------------------------
ARIZONA -- 1.4%
--------------------------------------------------------------------------------
Mesa, Arizona, Industrial Development
Authority Revenue, Discovery Health
System, Series B, (MBIA Insured),
Variable Rate Weekly Demand Note,
5.55%, 1/1/29a .................... A-1+ VMIG-1 19,200 19,200,000
Salt River, Arizona, Agricultural
Improvements and Power District
Electric Systems Revenue, (Salt
River Project), Refunding RB,
Series A,
5.50%, 1/1/01 ..................... AA Aa2 5,000 5,016,125
-----------
24,216,125
-----------
--------------------------------------------------------------------------------
COLORADO -- 2.5%
--------------------------------------------------------------------------------
Colorado Housing Finance Authority,
Multi-family Housing, Refunding RB,
(Central Park Project), (Guaranteed
by FNMA), Variable Rate Weekly
Demand
Note, 5.55%, 10/15/16a ............ A-1+ -- 600 600,000
Colorado Housing Finance Authority,
Multi-family Housing, Refunding RB,
(Diamond Project), (Guaranteed by
FNMA), Variable Rate Weekly Demand
Note, 5.55%, 10/15/16a ............ A-1+ -- 1,200 1,200,000
Colorado Housing Finance Authority,
Multi-family Housing, Refunding RB,
(Greenwood Project), (Guaranteed by
FNMA), Variable Rate Weekly Demand
Note, 5.55%, 10/15/16a ............ A-1+ -- 4,300 4,300,000
16
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
Rating
--------------- Par Market
S&P Moody's (000) Value
--------------------------------------------------------------------------------
COLORADO (continued)
--------------------------------------------------------------------------------
Colorado Housing Finance Authority,
Multi-family Housing, Refunding RB,
(Huntington Project), (Guaranteed
by FNMA), Variable Rate Weekly
Demand
Note, 5.55%, 10/15/16a ............ A-1+ -- $ 2,400 $ 2,400,000
Colorado Housing Finance Authority,
Multi-family Housing, Refunding RB,
(Loretto Project), (Guaranteed by
FNMA), Variable Rate Weekly Demand
Note, 5.55%, 10/15/16a ............ A-1+ -- 8,900 8,900,000
Colorado Housing Finance Authority,
Multi-family Housing, Refunding RB,
(Silver Reef Project), (Guaranteed
by FNMA), Variable Rate Weekly
Demand
Note, 5.55%, 10/15/16a ............ A-1+ -- 9,490 9,490,000
Colorado Housing Finance Authority,
Multi-family Housing, Refunding RB,
(St. Moritz Project), (Guaranteed
by FNMA), Variable Rate Weekly
Demand
Note, 5.55%, 10/15/16a ............ A-1+ -- 4,800 4,800,000
Colorado State, TRAN,
5.00%, 6/27/01 .................... A-1+ -- 10,000 10,048,270
-------------
41,738,270
-------------
--------------------------------------------------------------------------------
CONNECTICUT -- 0.1%
--------------------------------------------------------------------------------
Connecticut State, Special
Assignment, Unemployment
Compensation, Series A, (AMBAC
Insured), Revenue
Bond, 4.60%, 11/15/00 ............. AAA Aaa 1,895 1,895,698
-------------
--------------------------------------------------------------------------------
DELAWARE -- 0.5%
--------------------------------------------------------------------------------
Delaware State, G.O. Prerefunded:
4/01/01 @ 102,
6.50%, 4/1/09 ..................... AAA Aaa 1,500 1,545,385
Delaware State, G.O., Series A:
5.00%, 1/1/01 ..................... AAA Aaa 4,000 4,007,342
5.70%, 3/1/01 ..................... AAA Aaa 2,000 2,011,555
Delaware State, G.O.,
6.125%, 4/1/01 .................... AAA Aaa 1,000 1,009,043
-------------
8,573,325
-------------
17
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2000
(UNAUDITED)
Rating
--------------- Par Market
TAX-FREE SERIES (continued) S&P Moody's (000) Value
--------------------------------------------------------------------------------
FLORIDA -- 3.3%
--------------------------------------------------------------------------------
Florida State Municipal Power Agency
Revenue, (Stanton II Project),
(AMBAC Insured), Variable Rate
Weekly
Demand Note, 5.45%, 10/1/27a ...... A-1 Aaa $13,400 $13,400,000
Florida State, G.O., Board of
Education, Capital Outlay, Public
Education, Series A, Prerefunded
06/01/01 @ 101,
6.75%, 6/1/21 ..................... AAA Aaa 5,000 5,127,272
Jacksonville, Florida, Electricity
Authority, Series A, Variable Rate
Daily
Demand Note, 5.60%, 10/1/10a ...... A-1+ VMIG-1 5,200 5,200,000
Jacksonville, Florida, Electricity
Authority, Series B, Variable Rate
Daily
Demand Note, 5.60%, 10/1/10a ...... A-1+ VMIG-1 2,100 2,100,000
Jacksonville, Florida, Electricity
Authority, Series C, Variable Rate
Daily
Demand Note, 5.60%, 10/1/10a ...... A-1+ VMIG-1 160 160,000
Pinellas County, Florida, Health
Facilities Revenue Authority,
Refunding RB, (Pooled Hospital
Loans Program), (AMBAC Insured),
Variable Daily
Demand Note, 5.60%, 12/1/15a ...... A-1+ VMIG-1 27,790 27,790,000
Tampa Health Facilities Authority RB,
(Lifelink Foundation Inc. Project),
(LOC: SunTrust Bank), Variable Rate
Weekly Demand Note,
5.60%, 8/1/22a .................... A-1+ VMIG-1 1,400 1,400,000
-----------
55,177,272
-----------
--------------------------------------------------------------------------------
GEORGIA -- 11.8%
--------------------------------------------------------------------------------
Burke County, Georgia, Pollution
Control Revenue Authority,
Refunding RB, (Oglethorpe Power),
Series A, (AMBAC Insured), Variable
Rate Daily
Demand Note, 5.60%, 1/1/20a ...... A-1+ Aaa 14,145 14,145,000
Burke County, Georgia, Pollution
Control Revenue Authority,
Refunding RB, (Oglethorpe Power),
Series B, (AMBAC Insured), Variable
Rate Daily
Demand Note, 5.60%, 1/1/20a ...... A-1+ Aaa 11,200 11,200,000
18
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
Rating
--------------- Par Market
S&P Moody's (000) Value
--------------------------------------------------------------------------------
GEORGIA (continued)
--------------------------------------------------------------------------------
Burke County, Georgia, (Oglethorpe
Power), (AMBAC Insured), Variable
Rate Demand Bond, (Tax Exempt
Commercial Paper Mode):
4.25%, 11/8/00 .................... A-1+ VMIG-1 $ 3,000 $ 3,000,000
4.10%, 11/10/00 ................... A-1+ VMIG-1 11,000 11,000,000
4.15%, 12/8/00 .................... A-1+ VMIG-1 1,000 1,000,000
Cobb County, Georgia, Housing
Authority, Refunding RB, (Post Mill
Project), (Guaranteed by FNMA),
Variable Rate Weekly Demand Note,
5.60%, 6/1/25a .................... 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, 5.60%, 11/1/17a ...... -- Aa3 3,500 3,500,000
De Kalb County, Georgia, Housing
Authority, Multi-family Housing,
Refunding RB, (Camden Brook
Project), (Guaranteed by FNMA),
Variable Rate Weekly Demand Note,
5.65%, 6/15/25a ................... A-1+ -- 5,700 5,700,000
De Kalb County, Georgia, Housing
Authority, Multi-family Housing,
Refunding RB, (Clairmont Crest
Project), (Guaranteed by FNMA),
Variable Rate Weekly Demand Note,
5.65%, 6/15/25a ................... A-1+ -- 1,700 1,700,000
De Kalb County, Georgia, Housing
Authority, Multi-family Housing,
Refunding RB, (Post Ashford
Project), (Guaranteed by FNMA),
Variable Rate Weekly Demand Note,
5.60%, 6/1/25a .................... A-1+ -- 8,895 8,895,000
Fulco, Georgia, Hospital Authority,
Refunding RB, (Piedmont Hospital
Project), (LOC: SunTrust Bank),
Variable Rate Weekly Demand Note,
5.55%, 3/1/24a .................... 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, 5.60%, 7/1/14a ....... -- Aa3 7,850 7,850,000
19
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2000
(UNAUDITED)
Rating
--------------- Par Market
TAX-FREE SERIES (continued) S&P Moody's (000) Value
--------------------------------------------------------------------------------
GEORGIA (continued)
--------------------------------------------------------------------------------
Georgia State, G.O., Series B:
7.20%, 3/1/01 ..................... AAA Aaa $ 2,600 $ 2,631,058
6.25%, 4/1/01 ..................... AAA Aaa 3,665 3,701,290
Georgia State, G.O., Series F,
6.00%, 12/1/00 .................... AAA Aaa 3,200 3,209,624
Macon-Bibb County, Georgia, Hospital
Authority Revenue, (Medical Center
of Central Georgia), (LOC: SunTrust
Bank), Variable Rate Weekly Demand
Note:
5.60%, 8/1/18a .................... -- Aa3 2,800 2,800,000
5.60%, 12/1/18a ................... A-1+ Aa3 5,000 5,000,000
Metropolitan Atlanta Rapid
Transportation Authority, Georgia,
Sales Tax Revenue, Series A, (LOC:
Bayerische Landesbank 50%,
Westdeutsche Landesbank 50%),
Variable Rate Weekly Demand Note,
5.55%, 7/1/25a .................... A-1+ VMIG-1 10,000 10,000,000
Metropolitan Atlanta Rapid
Transportation Authority, Georgia,
Sales Tax Revenue, Series B, (LOC:
Bayerische Landesbank 50%,
Westdeutsche Landesbank 50%),
Variable Rate Weekly Demand Note,
5.40%, 7/1/25a .................... A-1+ VMIG-1 3,000 3,000,000
Monroe County, Georgia, Pollution
Control Revenue Authority,
Refunding RB, (Oglethorpe Power),
Series B, (AMBAC Insured), Variable
Rate Daily
Demand Note, 5.60%, 1/1/20a ....... A-1+ Aaa 1,700 1,700,000
Municipal Electric Authority,
Georgia, Refunding RB, (General
Resolution Project), (LOC:
Landesbank-Hessen-Thuringen),
Variable Rate Weekly
Demand Note, 5.40%, 6/1/20a ....... A-1+ VMIG-1 6,750 6,750,000
Municipal Electric Authority,
Georgia, Refunding RB, (LOC: ABN
AMRO Bank N.V.), Variable Rate
Weekly Demand Note:
5.40%, 1/1/16a .................... A-1+ VMIG-1 2,000 2,000,000
5.40%, 1/1/20a .................... A-1+ VMIG-1 2,700 2,700,000
Municipal Electric Authority,
Georgia, Refunding RB, (LOC:
Bayerische Landesbank), Variable
Rate Weekly
Demand Note, 5.60%, 3/1/20a ....... A-1+ VMIG-1 4,000 4,000,000
20
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
Rating
--------------- Par Market
S&P Moody's (000) Value
--------------------------------------------------------------------------------
GEORGIA (continued)
--------------------------------------------------------------------------------
Municipal Electric Authority,
Georgia, Refunding RB, (LOC: ABN
AMRO Bank N.V.), Variable Rate
Weekly
Demand Note, 5.55%, 1/1/26a ....... A-1+ VMIG-1 $ 9,700 $ 9,700,000
Municipal Electric Authority,
Georgia, (LOC: Morgan Stanley) Tax
Exempt Commercial Paper:
4.00%, 10/6/00 .................... A-1+ VMIG-1 15,000 15,000,000
4.20%, 10/12/00 ................... A-1+ VMIG-1 5,000 5,000,000
4.20%, 11/7/00 .................... A-1+ VMIG-1 6,000 6,000,000
4.20%, 11/7/00 .................... A-1+ VMIG-1 10,650 10,650,000
4.20%, 12/8/00 .................... A-1+ VMIG-1 2,100 2,100,000
4.15%, 12/8/00 .................... A-1+ VMIG-1 2,000 2,000,000
Roswell Housing Authority,
Multi-family Housing, Refunding RB,
(Post Canyon Project), (Guaranteed
by FNMA), Variable Rate Weekly
Demand Note,
5.60%, 6/1/25a .................... A-1+ -- 8,500 8,500,000
Smyrna Housing Authority,
Multi-family Housing, Refunding RB,
(F&M Villages Project), (Guaranteed
by FNMA), Variable Rate Weekly
Demand Note,
5.60%, 6/6/25a .................... A-1+ -- 13,700 13,700,000
------------
200,511,972
------------
--------------------------------------------------------------------------------
IDAHO -- 0.2%
--------------------------------------------------------------------------------
Idaho State, TAN, G.O.,
5.375%, 6/29/01 ................... A-1+ MIG-1 3,000 3,021,344
------------
--------------------------------------------------------------------------------
ILLINOIS -- 10.9%
--------------------------------------------------------------------------------
Chicago, Illinois, G.O., (LOC:
Westdeutsche Landesbank),
4.00%, 10/26/00 ................... A-1+ VMIG-1 6,500 6,500,000
Chicago, Illinois, G.O., Metropolitan
Water Reclamation District,
4.80%, 12/1/00 .................... AA Aa1 1,000 1,001,108
Chicago, Illinois, G.O., Series A-2,
(AMBAC Insured),
5.25%, 1/1/01 ..................... AAA Aaa 4,510 4,521,497
Illinois Development Finance
Authority Revenue, (Chicago
Symphony Orchestra), (LOC: Northern
Trust Co.), Variable Rate Weekly
Demand
Note, 5.40%, 12/1/28a ............. A-1+ VMIG-1 11,300 11,300,000
21
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DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2000
(UNAUDITED)
Rating
--------------- Par Market
TAX-FREE SERIES (continued) S&P Moody's (000) Value
--------------------------------------------------------------------------------
ILLINOIS (continued)
--------------------------------------------------------------------------------
Illinois Development Finance
Authority Revenue, (Fenwick High
School Project), (LOC: Northern
Trust Co.), Variable Rate Weekly
Demand Note,
5.50%, 3/1/32a ................... A-1+ -- $ 8,200 $ 8,200,000
Illinois Development Finance
Authority, (Chicago Symphony
Project), (LOC: Bank One), Variable
Rate Weekly
Demand Note, 5.40%, 12/1/33a ..... A-1 -- 7,000 7,000,000
Illinois Development Finance
Authority, (Jewish Federation
Project), (AMBAC Insured), Variable
Rate Weekly
Demand Note, 5.65%, 9/1/24a ...... -- VMIG-1 8,595 8,595,000
Illinois Development Finance
Authority, Pollution Control
Revenue, (Commonwealth Edison
Company Project), Series C, (LOC:
ABN AMRO Bank N.V.), Variable Rate
Weekly
Demand Note, 5.60%, 3/1/09a ...... A-1+ P-1 17,700 17,700,000
Illinois Development Finance
Authority, Pollution Control
Revenue, Refunding RB, (Illinois
Power Company Project), Series A,
(LOC: ABN AMRO Bank N.V.), Variable
Rate Weekly Demand
Note, 5.55%, 11/1/28a ............ A-1+ VMIG-1 4,500 4,500,000
Illinois Development Finance
Authority, Pollution Control
Revenue, (Illinois Power Company
Project), Series B, (LOC: ABN AMRO
Bank N.V.), Variable Rate Weekly
Demand Note,
5.55%, 11/1/28a .................. A-1+ VMIG-1 6,100 6,100,000
Illinois Educational Facilities
Authority, (Field Museum of Natural
History), (LOC: Northern Trust
Co.), Mandatory Put 3/7/01 @ 100,
4.30%, 11/1/25 ................... -- VMIG-1 5,000 5,000,000
Illinois Educational Facilities
Authority, University of Chicago,
Variable Rate Demand Note, (Tax
Exempt Commercial Paper Mode),
4.25%, 12/14/00 .................. A-1+ P-1 10,000 10,000,000
Illinois Health Facilities Authority,
(Evanston Hospital Corporation),
Series A, Mandatory Put
7/31/01 @ 100,
4.45%, 3/15/25 ................... A-1+ VMIG-1 7,000 7,000,000
22
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
Rating
--------------- Par Market
S&P Moody's (000) Value
--------------------------------------------------------------------------------
ILLINOIS (continued)
--------------------------------------------------------------------------------
Illinois Health Facilities Authority,
(Gottlieb Health Resources, Inc.),
(LOC: Harris Trust and Savings
Bank), Variable Rate Weekly Demand
Note:
5.50%, 11/15/24a .................. -- VMIG-1 $ 3,300 $ 3,300,000
5.50%, 11/15/25a .................. -- VMIG-1 13,800 13,800,000
Illinois Health Facilities Authority,
Refunding RB, (The Carle
Foundation), Series B, (AMBAC
Insured), Variable Rate Weekly
Demand Note,
5.60%, 7/1/28a .................... A-1+ VMIG-1 5,800 5,800,000
Illinois Health Facilities Authority,
(Northwestern Memorial Hospital),
Variable Rate Daily Demand Note,
5.60%, 8/15/25a ................... A-1+ VMIG-1 24,700 24,700,000
Illinois Health Facilities Authority,
Revolving Fund, Pooled Financing
Program, (University of Chicago
Project), Mandatory Put
03/07/01 @ 100,
4.35%, 8/1/15 ..................... A-1+ VMIG-1 9,900 9,900,000
Illinois Housing Development
Authority, Multi-family Revenue,
(Lakeshore Plaza), Series A, (MBIA
Insured), Variable Rate Weekly
Demand Note,
5.55%, 7/1/27a .................... A-1 VMIG-1 9,200 9,200,000
Illinois State, G.O.
4.75%, 1/1/01 ..................... AA Aa2 4,500 4,506,362
Schaumburg, Illinois, Multi-family
Housing, Refunding RB, (FNMA
Guaranteed), Variable Rate Weekly
Demand Note, 5.35%, 12/15/29a ..... A-1+ -- 10,485 10,485,000
Schaumburg, Illinois, G.O., Series A,
Variable Rate Weekly Demand Note,
5.55%, 12/1/13a ................... A-1+ VMIG-1 5,100 5,100,000
------------
184,208,967
------------
--------------------------------------------------------------------------------
INDIANA -- 1.2%
--------------------------------------------------------------------------------
Indiana Municipal Power Agency, Power
Supplies System Revenue, Refunding
RB, Series A, (LOC: Toronto
Dominion Bank), Variable Rate
Weekly
Demand Note, 5.45%, 1/1/18a ....... A-1+ VMIG-1 1,200 1,200,000
23
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2000
(UNAUDITED)
Rating
--------------- Par Market
TAX-FREE SERIES (continued) S&P Moody's (000) Value
--------------------------------------------------------------------------------
INDIANA (continued)
--------------------------------------------------------------------------------
Purdue University, Student Fee Bonds,
Series K, Variable Rate Weekly
Demand Note, 5.80%, 7/1/20a ....... A-1+ VMIG-1 $ 8,700 $ 8,700,000
Purdue University, Student Fee Bonds,
Series L, Variable Rate Weekly
Demand Note, 5.80%, 7/1/20a ....... A-1+ VMIG-1 11,225 11,225,000
------------
21,125,000
------------
--------------------------------------------------------------------------------
IOWA -- 0.4%
--------------------------------------------------------------------------------
Iowa Finance Authority, Hospital
Facilities Revenue, (Iowa Health
System), Series B, (AMBAC Insured),
Variable Rate Weekly Demand Note:
5.60%, 7/1/15a .................... A-1+ VMIG-1 2,400 2,400,000
5.60%, 7/1/20a .................... A-1+ VMIG-1 4,300 4,300,000
------------
6,700,000
------------
--------------------------------------------------------------------------------
KANSAS -- 0.1%
--------------------------------------------------------------------------------
Johnson County, Kansas, G.O., School
District, Series A,
5.90%, 10/1/00 .................... AA Aa1 1,000 1,000,000
------------
--------------------------------------------------------------------------------
KENTUCKY -- 0.4%
--------------------------------------------------------------------------------
Kentucky Asset/Liability Commission,
General Fund, TRAN, Series A,
5.25%, 6/27/01 .................... SP-1+ MIG-1 6,000 6,029,920
------------
--------------------------------------------------------------------------------
MARYLAND -- 5.3%
--------------------------------------------------------------------------------
Community Development Administration
Multi-family Development, Refunding
RB, (Avalon Ridge Apartments
Project), (Guaranteed by FNMA),
Variable Rate Weekly Demand Note,
5.35%, 6/15/26a ................... -- VMIG-1 18,515 18,515,000
Frederick County, Maryland, BAN,
Variable Rate Weekly Demand Note,
5.40%, 10/1/07a ................... A-1+ VMIG-1 1,200 1,200,000
24
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
Rating
--------------- Par Market
S&P Moody's (000) Value
--------------------------------------------------------------------------------
MARYLAND (continued)
--------------------------------------------------------------------------------
Maryland State Health & Higher
Educational Facilities Authority,
(LOC: First National Bank),
Variable Rate Weekly Demand Note,
5.55%, 7/1/24a .................... A-1 -- $ 4,900 $ 4,900,000
Maryland State Health & Hospital
Authority, Lease Revenue, (Johns
Hopkins Hospital), Series A, (LOC:
Canadian Imperial Bank), Variable
Rate Weekly Demand Note,
5.50%, 7/1/27a .................... A-1+ VMIG-1 23,700 23,700,000
Maryland State, G.O.,
6.50%, 3/1/01 ..................... AAA Aaa 1,080 1,089,756
Montgomery County, Maryland, G.O.,
6.30%, 4/1/01 ..................... AAA Aaa 2,250 2,272,351
Montgomery County, Maryland, G.O.,
Series A,
4.875%, 5/1/01 .................... AAA Aaa 5,000 5,018,240
Montgomery County, Maryland, Tax
Exempt Commercial Paper,
4.05%, 11/9/00 .................... A-1+ P-1 9,200 9,200,000
4.05%, 11/9/00 .................... A-1+ P-1 14,300 14,300,000
4.15%, 11/9/00 .................... A-1+ P-1 4,200 4,200,000
Washington Suburban Sanitary
District, G.O., (General
Construction),
7.00%, 6/1/01 ..................... AA Aa1 1,480 1,501,224
Washington Suburban Sanitary
District, G.O., Variable Rate
Weekly Demand
Note, 5.40%, 8/1/04a .............. A-1+ VMIG-1 4,445 4,445,000
------------
90,341,571
------------
--------------------------------------------------------------------------------
MASSACHUSETTS -- 3.5%
--------------------------------------------------------------------------------
Massachusetts State, G.O., Series A,
Variable Rate Weekly Demand Note,
5.30%, 9/1/16a .................... A-1+ VMIG-1 4,700 4,700,000
Massachusetts State, G.O., Series B,
Variable Rate Weekly Demand Note,
5.30%, 9/1/16a .................... A-1+ VMIG-1 53,800 53,800,000
------------
58,500,000
------------
25
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2000
(UNAUDITED)
Rating
--------------- Par Market
TAX-FREE SERIES (continued) S&P Moody's (000) Value
--------------------------------------------------------------------------------
MICHIGAN -- 2.8%
--------------------------------------------------------------------------------
Detroit, Michigan, Water Supply
Systems, (FGIC Insured), Variable
Rate Weekly
Demand Note, 5.55%, 7/1/13a ....... A-1+ VMIG-1 $ 2,000 $ 2,000,000
Michigan State University, General
Revenue, Series A-2, Variable Rate
Weekly Demand Note,
5.50%, 8/15/22a ................... A-1+ MIG-1 15,800 15,800,000
Michigan State, Building Authority,
(LOC: CIBC 33.3%, Commerzbank
33.3%, Bank of New York 33.4%) Tax
Exempt Commercial Paper,
4.35%, 10/26/00 ................... A-1+ P-1 12,000 12,000,000
Michigan State, Strategic Fund,
(Detroit Edison Co.), (LOC:
Barclays Bank), Variable Rate Daily
Demand Note,
5.60%, 9/1/30a .................... A-1+ P-1 7,950 7,950,000
Monroe County, Michigan, Economic
Development Corporation, (Detroit
Edison Co.), Series CC, (LOC:
Barclays Bank), Variable Rate Daily
Demand Note, 5.60%, 10/1/24a ...... -- P-1 5,400 5,400,000
University of Michigan, Tax Exempt
Commercial Paper,
4.25%, 10/5/00 .................... A-1+ P-1 5,000 5,000,000
------------
48,150,000
------------
--------------------------------------------------------------------------------
MINNESOTA -- 3.8%
--------------------------------------------------------------------------------
Minneapolis, Minnesota, G.O.:
5.60%, 10/1/00 ................... AAA Aaa 1,000 1,000,000
4.50%, 12/1/00 ................... AAA Aaa 8,000 8,004,497
Minneapolis, Minnesota, G.O., (St.
Paul Metropolitan Area), Series C,
4.75%, 2/1/01 .................... AAA Aaa 1,385 1,387,385
Minnesota Public Facilities
Authority, (Water Pollution Control
Revenue), RB,
5.00%, 3/1/01 .................... AAA Aaa 5,220 5,236,825
Minnesota Public Facilities
Authority, (Water Pollution Control
Revenue), RB,
5.00%, 3/1/01 .................... AAA Aaa 1,160 1,162,833
Minnesota State, G.O.,
5.50%, 6/1/01 .................... AAA Aaa 10,000 10,071,873
University of Minnesota, Series A,
Variable Rate Weekly Demand Note,
5.45%, 1/1/34a ................... A-1+ VMIG-1 36,920 36,920,000
------------
63,783,413
------------
26
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
Rating
--------------- Par Market
S&P Moody's (000) Value
--------------------------------------------------------------------------------
MISSISSIPPI -- 0.4%
--------------------------------------------------------------------------------
Jackson County, Mississippi,
Pollution Control Revenue, (Chevron
USA Inc. Project), (Guaranteed by
Chevron), Variable Rate Daily
Demand Note:
5.50%, 12/1/16a .................. -- VMG-1 $ 1,500 $ 1,500,000
5.50%, 6/1/23a ................... -- P-1 5,850 5,850,000
------------
7,350,000
------------
--------------------------------------------------------------------------------
MISSOURI -- 3.3%
--------------------------------------------------------------------------------
Bi-State Development Agency,
Missouri, St. Clair County, (MBIA
Insured), Variable Rate Weekly
Demand Note,
5.45%, 7/1/28a .................... A-1+ -- 26,400 26,400,000
Missouri State, Health & Educational
Facilities Authority, (Barnes
Hospital Project), (LOC: Morgan
Guaranty Trust), Variable Rate
Weekly Demand Note,
5.60%, 12/1/15a ................... A-1+ VMIG-1 7,900 7,900,000
Missouri State, Health & Educational
Facilities Authority, (Washington
University), Series B, (LOC: Morgan
Guaranty Trust), Variable Rate
Daily Demand Note, 5.55%, 9/1/30a
A-1+ VMIG-1 10,400 10,400,000
Missouri State, Health & Educational
Facilities Authority, Medical
Research Facilities, (Stowers
Institution), Variable Rate Weekly
Demand Note,
5.65%, 7/1/35 ..................... A-1+ VMIG-1 8,000 8,000,000
University of Missouri, (Capital
Projects Notes), RAN,
5.25%, 6/29/01 .................... SP-1+ MIG1 3,000 3,019,139
------------
55,719,139
------------
--------------------------------------------------------------------------------
MONTANA -- 1.6%
--------------------------------------------------------------------------------
Forsyth, Montana, Pollution Control
Revenue, Refunding RB, (Pacificorp
Project), (LOC: Rabobank
Nederland), Variable Rate Daily
Demand Note,
5.55%, 1/1/18a .................... A-1+ P-1 26,675 26,675,000
------------
27
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2000
(UNAUDITED)
Rating
--------------- Par Market
TAX-FREE SERIES (continued) S&P Moody's (000) Value
--------------------------------------------------------------------------------
NEVADA -- 2.2%
--------------------------------------------------------------------------------
Las Vegas Valley Water District,
Nevada, (LOC: Westdeutsche
Landesbank), Tax Exempt Commercial
Paper:
4.00%, 10/12/00 ................... A-1+ P-1 $ 4,000 $ 4,000,000
4.25%, 11/8/00 .................... A-1+ P-1 2,000 2,000,000
4.25%, 11/10/00 ................... A-1+ P-1 9,000 9,000,000
4.25%, 12/6/00 .................... A-1+ P-1 14,100 14,100,000
4.25%, 12/8/00 .................... A-1+ P-1 2,000 2,000,000
4.20%, 12/8/00 .................... A-1+ P-1 1,000 1,000,000
4.25%, 1/17/01 .................... A-1+ P-1 5,000 5,000,000
------------
37,100,000
------------
--------------------------------------------------------------------------------
NEW MEXICO -- 1.7%
--------------------------------------------------------------------------------
Farmington, New Mexico, Pollution
Control Revenue, Refunding RB,
(Arizona Public Service Company),
Series B, (LOC: Barclays Bank),
Variable Rate Daily Demand Note,
5.55%, 9/1/24a .................... A-1+ P-1 2,400 2,400,000
Farmington, New Mexico, Refunding RB,
(Arizona Public Service Company),
Series A, (LOC: Barclays Bank),
Variable Rate Daily Demand Note,
6.00%, 5/1/24a .................... A-1+ P-1 1,100 1,100,000
New Mexico State Severance Tax,
Series A, RB,
5.00%, 7/1/01 ..................... A-1+ P-1 6,425 6,445,798
New Mexico State, TRAN,
5.00%, 6/29/01 .................... SP-1+ MIG-1 18,000 18,089,316
------------
28,035,114
------------
--------------------------------------------------------------------------------
NEW YORK -- 12.8%
--------------------------------------------------------------------------------
Long Island Power Authority, New
York, Electric System Revenue,
(LOC: Westdeutsche Landesbank 50%,
Bayerische Landesbank 50%),
Variable Rate Demand Bonds, (Tax
Exempt Commercial Paper Mode),
4.20%, 10/11/00 ................... -- -- 7,000 7,000,000
28
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
Rating
--------------- Par Market
S&P Moody's (000) Value
--------------------------------------------------------------------------------
NEW YORK (continued)
--------------------------------------------------------------------------------
Long Island Power Authority, New
York, Electric System Revenue,
Sub-Series 6, (LOC: ABN Ambro Bank
N.V. 50%, Morgan Guaranty Trust
50%), Variable Rate Daily Demand
Note,
5.45%, 5/1/33a .................... A-1+ VMIG-1 $10,860 $ 10,860,000
Long Island Power Authority, New
York, Electric System Revenue,
Sub-Series 2, (LOC: Westdeutsche
Landesbank 50%, Bayerische
Landesbank 50%) Variable Rate
Weekly Demand Note,
5.25%, 5/1/33a .................... A-1+ VMIG-1 24,400 24,400,000
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,
5.50%, 5/1/33a .................... A-1+ VMIG-1 3,900 3,900,000
New York City, New York, BAN,
Transitional Finance Authority
Revenue, Series 3,
4.75%, 11/1/00 .................... SP-1+ MIG-1 18,000 18,005,972
New York City, New York, Municipal
Water Finance Authority, Water and
Sewer System Revenue, Series A,
(FGIC Insured), Variable Rate Daily
Demand Note, 5.50%, 6/15/25a ...... A-1+ VMIG-1 13,625 13,625,000
New York City, New York, Transitional
Finance Authority Revenue, (Future
Tax Secured), Sub-Series B-2,
Variable Rate Daily Demand Note,
5.55%, 11/1/26a ................... A-1+ VMIG-1 4,500 4,500,000
New York City, New York, Transitional
Finance Authority Revenue, (Future
Tax Secured), Series C, Variable
Rate Daily Demand Note,
5.55%, 5/1/28a .................... -- VMIG-1 9,300 9,300,000
New York City, New York, Transitional
Finance Authority Revenue,
Sub-Series B-1, Variable Rate Daily
Demand Note,
5.55%, 11/1/27a ................... A-1+ VMIG-1 5,700 5,700,000
29
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2000
(UNAUDITED)
Rating
--------------- Par Market
TAX-FREE SERIES (continued) S&P Moody's (000) Value
--------------------------------------------------------------------------------
NEW YORK (continued)
--------------------------------------------------------------------------------
New York City, New York, Municipal
Water Finance Authority, Series 5,
(LOC: Bayerische Landesbank 33.3%,
Helaba 33.3%, Westdeutsche
Landesbank 33.4%) Tax Exempt
Commercial Paper:
4.20%, 10/5/00 .................... A-1+ P-1 $14,700 $ 14,700,000
4.25%, 10/12/00 ................... A-1+ P-1 9,000 9,000,000
New York State Thruway Authority,
Highway & Bridge Fund, Series B,
(FSA Insured),
5.00%, 4/1/01 ..................... AAA Aaa 7,630 7,654,768
New York State Thruway Authority, Tax
Exempt Commercial Paper:
4.20%, 10/5/00 .................... AAA Aaa 8,500 8,500,000
4.15%, 11/7/00 .................... AAA Aaa 8,000 8,000,000
4.20%, 12/11/00 ................... AAA Aaa 2,800 2,800,000
New York State, Dormitory Authority,
(Public Library), Series A, (MBIA
Insured) Variable Rate Weekly
Demand Note,
5.25%, 7/1/28a .................... A-1 VMIG-1 13,720 13,720,000
New York State, Energy Research and
Development Authority, Pollution
Control Revenue, (LOC: Bank One),
Variable Rate Daily Demand Note,
5.55%, 10/1/29a ................... A-1 VMIG-1 400 400,000
New York State, Housing Finance
Agency, Service Contract Obligation
Revenue, Series A, (LOC:
Commerzbank), Variable Rate Weekly
Demand Note,
5.40%, 3/15/27a ................... A-1+ VMIG-1 11,200 11,200,000
New York State, Local Assistance
Corporation, Series B, Prerefunded
4/01/01 @102,
7.50%, 4/1/20 ..................... AAA Aaa 2,075 2,147,944
New York State, Local Government
Assistance Corporation, Series B
(LOC: Westdeutsche Landesbank 50%,
Bayerische Landesbank 50%) Variable
Rate Weekly Demand Note,
5.25%, 4/1/23a .................... A-1+ VMIG-1 11,700 11,700,000
New York, New York, G.O., Series B,
(FGIC Insured), Variable Rate Daily
Demand Note, 5.50%, 10/1/20a ...... A-1+ VMIG-1 2,600 2,600,000
30
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
Rating
--------------- Par Market
S&P Moody's (000) Value
--------------------------------------------------------------------------------
NEW YORK (continued)
--------------------------------------------------------------------------------
New York, New York, Housing
Development Multi-family Housing,
Series A, Variable Rate Weekly
Demand Note,
5.30%, 11/15/19 ................... A-1+ -- $19,000 $ 19,000,000
New York, New York, Sub-Series A-10,
(LOC: Morgan Guaranty), Variable
Rate Daily Demand Note,
5.50%, 8/1/16a .................... A-1+ VMIG-1 400 400,000
New York, New York, Sub-Series B-2,
(LOC: Morgan Guaranty), Variable
Rate Daily Demand Note,
5.55%, 8/15/20a ................... A-1+ VMIG-1 3,200 3,200,000
Triborough Bridge & Tunnel Authority,
New York, Series C, (AMBAC
Insured), Variable Rate Weekly
Demand Note,
5.30%, 1/1/13a .................... A-1+ VMIG-1 4,700 4,700,000
------------
217,013,684
------------
--------------------------------------------------------------------------------
NORTH CAROLINA -- 4.9%
--------------------------------------------------------------------------------
Charlotte, North Carolina, G.O.,
5.00%, 2/1/01 ..................... AAA Aaa 1,500 1,503,839
Charlotte, North Carolina, G.O.,
Water & Sewer,
4.75%, 2/1/01 ..................... AAA Aaa 3,110 3,115,448
Charlotte-Mecklenberg Hospital
Authority, North Carolina, Health
Care System Revenue, Series C,
Variable Rate Weekly Demand Note,
5.60%, 1/15/26a ................... 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,
5.40%, 1/15/26a ................... A-1+ VMIG-1 17,000 17,000,000
North Carolina Medical Care
Commission Hospital Revenue, (Moses
H. Cone Memorial Hospital Project),
Variable Rate Weekly Demand Note,
31
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2000
(UNAUDITED)
Rating
--------------- Par Market
TAX-FREE SERIES (continued) S&P Moody's (000) Value
--------------------------------------------------------------------------------
NORTH CAROLINA (continued)
--------------------------------------------------------------------------------
5.50%, 9/1/05a .................... A-1+ -- $ 8,900 $ 8,900,000
North Carolina Medical Care
Commission Hospital Revenue, (North
Carolina Baptist Hospital Project),
Series B, Variable Rate Weekly
Demand Note, 5.50%, 6/1/22a ....... A-1+ VMIG-1 24,900 24,900,000
North Carolina Medical Care Community
Hospital Revenue, (Moses H. Cone
Memorial Hospital Project),
Variable Rate Weekly Demand Note:
5.50%, 9/1/02a .................... A-1+ -- 3,675 3,675,000
5.50%, 10/1/23a ................... A-1+ -- 6,100 6,100,000
North Carolina State University
(Raleigh), (Centennial Project),
Series A, (FSA Insured), Variable
Rate Weekly Demand Note,
5.45%, 12/15/19a .................. A-1 -- 2,000 2,000,000
North Carolina State, G.O., (Public
School Building),
4.50%, 4/1/01 ..................... AAA Aaa 4,440 4,446,756
North Carolina State, G.O., Series A,
6.10%, 3/1/01 ..................... AAA Aaa 2,140 2,156,199
------------
83,797,242
------------
--------------------------------------------------------------------------------
OHIO -- 4.5%
--------------------------------------------------------------------------------
Columbus, Ohio, G.O., Series 2,
5.00%, 6/15/01 .................... AAA Aaa 1,000 1,002,351
Ohio State University, Series B,
Variable Rate Weekly Demand Note:
5.40%, 12/1/14a ................... A-1+ VMIG-1 5,850 5,850,000
5.40%, 12/1/19a ................... A-1+ VMIG-1 1,000 1,000,000
5.40%, 12/1/29a ................... A-1+ VMIG-1 3,200 3,200,000
Ohio State University, Tax Exempt
Commercial Paper,
4.30%, 11/8/00 .................... A-1+ VMIG-1 6,000 6,000,000
Ohio State University, Variable Rate
Weekly Demand Note:
5.40%, 12/1/07a ................... A-1+ VMIG-1 17,500 17,500,000
5.40%, 12/1/17a ................... A-1+ VMIG-1 7,250 7,250,000
5.40%, 12/1/27a ................... A-1+ VMIG-1 10,110 10,110,000
Ohio State, Building Authority, State
Facilities, (Administration
Building Fund), RB, Series A, (MBIA
Insured),
5.20%, 10/1/00 AAA Aaa 1,000 1,000,000
32
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
Rating
--------------- Par Market
S&P Moody's (000) Value
--------------------------------------------------------------------------------
OHIO -- (continued)
--------------------------------------------------------------------------------
Ohio State, G.O. Highway Capital
Improvements, Series E,
5.00%, 5/1/01 ..................... AAA Aa1 $15,655 $ 15,721,317
Ohio State, Public Facilities,
(Higher Educational Capital
Facilities), RB, Series II-A,
4.50%, 12/1/00 .................... AA Aa2 5,000 5,002,267
Ohio State, Public Facilities,
(Mental Health Capital Facilities),
RB, Series II-A,
5.125%, 6/1/01 .................... AA Aa2 3,500 3,514,392
------------
77,150,327
------------
--------------------------------------------------------------------------------
OKLAHOMA -- 1.0%
--------------------------------------------------------------------------------
Oklahoma State Industrial Authority,
(Integris Baptist), Refunding RB,
Series B, (MBIA Insured), Variable
Rate Daily
Demand Note, 5.60%, 8/15/29a ...... A-1+ VMIG-1 17,100 17,100,000
------------
--------------------------------------------------------------------------------
PENNSYLVANIA -- 0.2%
--------------------------------------------------------------------------------
Delaware County, Pennsylvania,
Pollution Control Revenue,
(Philadelphia Electric Co.),
Refunding RB, Series A, (LOC:
Toronto Dominion Bank), Variable
Rate Daily Demand Note,
5.55%, 8/1/16a .................... A-1+ P-1 1,925 1,925,000
Pennsylvania State, G.O., First
Series,
4.80%, 4/15/01 .................... AA Aa3 1,000 1,002,358
Pennsylvania State, G.O., Second
Series (MBIA Insured),
5.00%, 6/15/01 .................... AAA Aaa 1,000 1,004,409
------------
3,931,767
------------
--------------------------------------------------------------------------------
SOUTH CAROLINA -- 0.6%
--------------------------------------------------------------------------------
Rock Hill, South Carolina, Utility
System Revenue, Series B, (AMBAC
Insured), Variable Rate Weekly
Demand Note,
5.40%, 1/1/23a .................... A-1+ VMIG-1 6,640 6,640,000
South Carolina State, G.O., (Capital
Improvements), Series A,
6.35%, 3/1/01 ..................... AAA Aaa 3,200 3,227,557
------------
9,867,557
------------
33
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2000
(UNAUDITED)
Rating
--------------- Par Market
TAX-FREE SERIES (continued) S&P Moody's (000) Value
--------------------------------------------------------------------------------
TENNESSEE -- 1.3%
--------------------------------------------------------------------------------
Memphis, Tennessee, G.O., Series A,
Variable Rate Weekly Demand Note:
5.70%, 8/1/04a ................... A-1+ VMIG-1 $ 2,100 $ 2,100,000
5.70%, 8/1/07a ................... A-1+ VMIG-1 2,800 2,800,000
Tennessee State, Tax Exempt
Commercial Paper,
4.25%, 12/7/00 ................... AAA Aaa 10,000 10,000,000
Tennessee School Bond Authority, Tax
Exempt Commercial Paper:
4.30%, 10/12/00 .................. A-1+ P-1 3,500 3,500,000
4.55%, 10/25/00 .................. A-1+ P-1 2,000 2,000,000
4.30%, 12/8/00 ................... A-1+ P-1 2,000 2,000,000
------------
22,400,000
------------
--------------------------------------------------------------------------------
TEXAS -- 10.0%
--------------------------------------------------------------------------------
Angelina & Neches River Authority,
Texas, Industrial Development
Corporation, Solid Waste Revenue,
(LOC: Bank of America), Variable
Rate Daily Demand Note:
5.65%, 5/1/14a ................... -- P-1 1,000 1,000,000
5.65%, 5/1/14a ................... -- P-1 1,200 1,200,000
Dallas, Texas, G.O.:
5.00%, 2/15/01 ................... AAA Aaa 1,680 1,683,312
5.90%, 2/15/01 ................... AAA Aaa 1,000 1,006,057
6.00%, 2/15/01 ................... AAA Aaa 2,750 2,767,839
5.25%, 8/15/01 ................... AAA Aaa 1,750 1,763,671
Dallas, Texas, Waterworks and Sewer
Systems, Refunding RB,
6.75%, 4/1/01 .................... AA Aa2 1,810 1,831,481
Fort Worth, Texas, G.O., Series A,
5.30%, 3/1/01 .................... AA Aa2 3,500 3,514,598
Harris County, Texas, G.O., Toll
Road, Series G, Variable Rate
Weekly
Demand Note, 5.60%, 8/1/20a ...... A-1+ VMIG-1 1,000 1,000,000
Harris County, Texas, G.O., Toll
Road, Series H, Variable Rate
Weekly Demand Note,
5.60%, 8/1/20a ................... A-1+ VMIG-1 9,600 9,600,000
Harris County, Texas, Tax Exempt
Commercial Paper:
4.25%, 10/5/00 ................... A-1+ P-1 2,567 2,567,000
4.20%, 10/17/00 .................. A-1+ P-1 2,630 2,630,000
4.05%, 11/1/00 ................... A-1+ P-1 1,000 1,000,000
34
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
Rating
--------------- Par Market
S&P Moody's (000) Value
--------------------------------------------------------------------------------
TEXAS (continued)
--------------------------------------------------------------------------------
4.20%, 11/10/00 .................. A-1+ P-1 $ 3,000 $ 3,000,000
4.10%, 11/10/00 .................. A-1+ P-1 1,296 1,296,000
4.15%, 12/8/00 ................... A-1+ P-1 1,610 1,610,000
4.15%, 12/8/00 ................... A-1+ P-1 8,135 8,135,000
Richardson, Texas, Independent School
District, Series B, (Guaranteed by
Permanent School Fund)
6.875%, 2/15/01 .................. AAA Aaa 1,545 1,559,342
Sabine River Authority, Texas,
Pollution Control Revenue,
Refunding RB, (Utilities Electric
Company), (LOC: UBS AG), Variable
Rate Daily Demand
Note, 5.55%, 6/1/30a ............. A-1+ VMIG-1 6,650 6,650,000
Texas Higher Education Authority,
Series B, (FGIC Insured), Variable
Rate Weekly Demand Note,
5.50%, 12/1/25a .................. A-1+ VMIG-1 2,595 2,595,000
Texas State, Tax Exempt Commercial
Paper:
4.20%, 10/18/00 .................. A-1+ P-1 5,000 5,000,000
4.20%, 11/9/00 ................... A-1+ P-1 7,600 7,600,000
4.20%, 12/7/00 ................... A-1+ P-1 5,000 5,000,000
4.05%, 12/7/00 ................... A-1+ P-1 10,000 10,000,000
Texas State, TRAN,
5.25%, 8/31/01 ................... SP-1+ MIG-1 30,000 30,254,050
University of Texas, Texas, Tax
Exempt Commercial Paper:
4.15%, 10/5/00 ................... A-1+ P-1 4,000 4,000,000
4.20%, 10/11/00 .................. A-1+ P-1 6,000 6,000,000
4.25%, 10/24/00 .................. A-1+ P-1 3,155 3,155,000
4.25%, 10/24/00 .................. A-1+ P-1 1,138 1,138,000
4.25%, 12/6/00 ................... A-1+ P-1 5,000 5,000,000
4.20%, 12/6/00 ................... A-1+ P-1 12,000 12,000,000
4.05%, 12/7/00 ................... A-1+ P-1 10,000 10,000,000
4.10%, 12/8/00 ................... A-1+ P-1 15,000 15,000,000
------------
170,556,350
------------
--------------------------------------------------------------------------------
UTAH -- 1.6%
--------------------------------------------------------------------------------
Intermountain Power Agency Authority,
Utah, Power Supply Revenue, Series
C, Refunding RB, (MBIA Insured),
6.00%, 7/1/01 .................... AAA Aaa 4,155 4,204,712
Utah State, G.O., Series C, Variable
Rate Weekly Demand Note,
5.35%, 7/1/16a ................... A-1+ VMIG-1 10,700 10,700,000
35
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2000
(UNAUDITED)
Rating
--------------- Par Market
TAX-FREE SERIES (continued) S&P Moody's (000) Value
--------------------------------------------------------------------------------
UTAH -- (continued)
--------------------------------------------------------------------------------
Utah State, G.O., Series B, Variable
Rate Weekly Demand Note,
5.50%, 7/1/16a ................... A-1+ VMIG-1 $ 7,025 $ 7,025,000
Utah State, G.O., Series D, Variable
Rate Weekly Demand Note,
5.50%, 7/1/16a ................... A-1+ VMIG-1 6,000 6,000,000
------------
27,929,712
------------
--------------------------------------------------------------------------------
VERMONT -- 0.1%
--------------------------------------------------------------------------------
Vermont State, G.O., Series A,
6.50%, 2/1/01 .................... AA Aa1 1,685 1,695,294
------------
--------------------------------------------------------------------------------
VIRGINIA -- 0.5%
--------------------------------------------------------------------------------
Virginia College Building Authority,
Education Facilities Revenue, (21st
Century College Program),
5.75%, 2/1/01 .................... AA+ Aa1 9,270 9,301,988
------------
--------------------------------------------------------------------------------
WISCONSIN -- 1.5%
--------------------------------------------------------------------------------
La Crosse, Wisconsin, Pollution
Control Revenue, (Dairyland Power),
(AMBAC Insured), Variable Rate
Daily Demand
Note, 5.55%, 2/1/15a ............. A-1+ VMIG-1 3,750 3,750,000
Milwaukee County, Wisconsin, G.O.,
(Corporate Purpose) -- Series A,
5.00%, 12/1/00 ................... AA- Aa3 1,000 1,001,239
Milwaukee, Wisconsin, RAN, Series B,
5.25%, 8/30/01 ................... SP-1+ MIG1 5,000 5,042,847
Oak Creek, Wisconsin, Pollution
Control Revenue, (Wisconsin
Electric Power Co. Project),
Variable Rate Weekly
Demand Note, 5.50%, 8/1/16a ...... A-1+ P-1 3,200 3,200,000
Pleasant Prairie, Wisconsin,
Pollution Control Revenue,
(Wisconsin Electric Power Co.
Project), Refunding RB, Series A,
Variable Rate Weekly
Demand Note, 5.45%, 9/1/30a ...... A-1+ P-1 500 500,000
Pleasant Prairie, Wisconsin,
Pollution Control Revenue,
(Wisconsin Electric Power Co.
Project), Refunding RB, Series B,
Variable Rate Weekly
Demand Note, 5.45%, 9/1/30a ...... A-1+ P-1 11,150 11,150,000
36
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
Rating
--------------- Par Market
S&P Moody's (000) Value
--------------------------------------------------------------------------------
WISCONSIN -- (continued)
--------------------------------------------------------------------------------
Pleasant Prairie, Wisconsin,
Environmental Improvements Revenue,
(Wisconsin Electric Power Co.
Project), Refunding RB, Variable
Rate Weekly Demand Note,
5.45%, 3/1/06a ................... A-1+ P-1 $ 100 $ 100,000
Wisconsin State, (LOC: Bayerische
Landesbank 50%, Westdeutsche
Landesbank 50%) Tax Exempt
Commercial Paper,
4.20%, 10/11/00 .................. A-1+ P-1 1,017 1,017,000
--------------
25,761,086
--------------
--------------------------------------------------------------------------------
WYOMING -- 2.7%
--------------------------------------------------------------------------------
Kemmerer, Wyoming, Pollution Control
Authority, (Exxon Project),
Variable Rate Daily Demand Note,
5.50%, 11/1/14a .................. A-1+ P-1 2,700 2,700,000
Platte County, Wyoming, Pollution
Control Revenue, Tri-State (LOC:
National Rural Utility), Variable
Rate Daily Demand Note,
5.55%, 7/1/14a ................... P-1 -- 11,900 11,900,000
Sublette County, Wyoming, Pollution
Control Revenue, (Exxon Project),
Variable Rate Daily Demand Note,
5.50%, 11/1/14a .................. A-1+ Aaa 13,850 13,850,000
Sweetwater County, Wyoming, Pollution
Control Revenue, (Pacificorp
Project), (LOC: UBS), Variable Rate
Daily Demand Note,
5.55%, 1/1/14a ................... A-1+ P-1 4,350 4,350,000
Uinta County, Wyoming, Pollution
Control Revenue, (Chevron USA. Inc.
Project), Variable Rate Daily
Demand Note:
5.50%, 4/1/10a ................... P-1 -- 650 650,000
5.50%, 8/15/20a .................. P-1 -- 8,600 8,600,000
5.50%, 12/1/22a .................. P-1 -- 4,400 4,400,000
--------------
46,450,000
--------------
TOTAL INVESTMENTS (Amortized Cost $1,698,507,137) ..... 100.0% $1,698,507,137
LIABILITIES IN EXCESS OF OTHER ASSETS ................. 0.0 (804,418)
----- --------------
NET ASSETS ............................................ 100.0% $1,697,702,719
===== ==============
<PAGE>
37
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED) SEPTEMBER 30, 2000
(UNAUDITED)
TAX-FREE SERIES (concluded)
--------------------------------------------------------------------------------
-----------------------
a Demand security; payable upon demand by the Fund with usually no more than
seven (7) calendar days' notice. Interest rates are redetermined
periodically. Rates shown are those in effect on September 30, 2000.
INVESTMENT ABBREVIATIONS:
BAN Bond Anticipation Notes
FNMA Federal National Mortgage Association
G.O. General Obligation Bond
LOC Letter of Credit
RAN Revenue Anticipation Note
RB Revenue Bond
TAN Tax Anticipation Note
TRAN Tax Revenue Anticipation Note
INSURANCE ABBREVIATIONS:
AMBAC AMBAC Indemnity Corporation
FGIC Financial Guaranty Insurance Corporation
FSA Financial Security Assurance
MBIA Municipal Bond Investors Assurance
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.
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 one, two or three, 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.
A DETAILED DESCRIPTION OF THE ABOVE RATINGS CAN BE FOUND IN THE FUND'S
STATEMENT OF ADDITIONAL INFORMATION.
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Prime Treasury Tax-Free
Series Series Series
------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments, at value .......... $6,100,635,671 $729,963,858 $1,698,507,137
Cash ........................... -- 366 218,050
Receivable for securities sold . 48,551,000 -- --
Receivable for capital
shares sold .................. 2,504,125 -- --
Interest receivable ............ 19,799,732 6,845,421 10,218,947
Prepaid expenses and
other assets ................. 1,021,506 221,441 464,942
-------------- ------------ --------------
Total assets .............. 6,172,512,034 737,031,086 1,709,409,076
-------------- ------------ --------------
LIABILITIES:
Payable for capital shares
redeemed ..................... 12,150 -- --
Incomedividend payable ......... 7,976,585 999,068 1,473,080
Payable for securities
purchased .................... -- -- 9,101,367
Accrued expenses and
other liabilities ............ 4,013,288 805,444 1,131,910
-------------- ------------ --------------
Total liabilities ......... 12,002,023 1,804,512 11,706,357
-------------- ------------ --------------
Net assets ........................ $6,160,510,011 $735,226,574 $1,697,702,719
-------------- ------------ --------------
NET ASSETS CONSIST OF:
Paid-in capital ................ 6,160,403,240 734,964,302 1,697,949,308
Accumulated net investment
income (loss) ................ 95,209 83,105 (55,228)
Accumulated net realized gain
(loss) on investment
transactions ................. 11,562 179,167 (191,361)
-------------- ------------ --------------
Net assets ........................ $6,160,510,011 $735,226,574 $1,697,702,719
============== ============ ==============
Shares outstanding ................ $6,160,400,569 $734,968,491 $1,697,947,926
============== ============ ==============
Net assets value .................. $ 1.00 $ 1.00 $ 1.00
============== ============ ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
-------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) (CONTINUED)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Prime Treasury Tax-Free
Series Series Series
---------------------------------------------------------------------------------
<S> <C> <C> <C>
COMPUTATION OF NET ASSET VALUE:
Deutsche Banc Alex. Brown Cash
Reserve Prime Shares, Treasury
Shares and Tax-Free Shares
Net assets ................... $5,582,133,030 $647,473,595 $1,586,095,440
============== ============ ==============
Shares Outstanding ........... 5,582,035,613 647,249,989 1,586,320,197
============== ============ ==============
Net asset value .............. $ 1.00 $ 1.00 $ 1.00
============== ============ ==============
Deutsche Banc Alex. Brown Cash
Reserve Prime Institutional Shares,
Treasury Institutional Shares and
Tax-Free Institutional Shares
Net assets ................... $ 511,680,955 $ 87,752,979 $ 111,607,279
============== ============ ==============
Shares Outstanding ........... 511,676,824 87,718,502 111,627,729
============== ============ ==============
Net asset value .............. $ 1.00 $ 1.00 $ 1.00
============== ============ ==============
Flag Investors Class A Shares
Net assets ................... $ 10,138,930
==============
Shares Outstanding ........... 10,138,366
==============
Net asset value .............. $ 1.00
==============
Flag Investors Class B Shares
Net assets ................... $ 4,281,153
==============
Shares Outstanding ........... 4,280,954
==============
Net asset value .............. $ 1.00
==============
Flag Investors Class C Shares
Net assets ................... $ 536,737
==============
Shares Outstanding ........... 536,929
==============
Net asset value .............. $ 1.00
==============
Quality Cash Reserve Shares
Net assets ................... $ 51,739,206
==============
Shares Outstanding ........... 51,731,883
==============
Net asset value .............. $ 1.00
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
-------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Prime Treasury Tax-Free
Series Series Series
---------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income ................... $196,690,888 $23,680,250 $33,131,441
------------ ----------- -----------
EXPENSES:
Investment advisory fees .......... 7,654,219 929,791 2,104,582
Distribution fees:
Deutsche Banc Alex. Brown
Cash Reserve Prime,
Treasury and Tax-Free
Shares, respectively ......... 7,061,696 868,561 1,839,894
Flag Investors Class A Shares ... 19,591 -- --
Flag Investors Class B Shares ... 14,358 -- --
Flag Investors Class C Shares ... 1,393 -- --
Quality Cash Reserve Shares ..... 188,826 -- --
Registration fees ................. 235,793 107,137 --
Accounting fees ................... 94,902 64,824 72,953
Professional fees ................. 77,027 22,364 22,192
Transfer agent fees ............... 1,854,563 180,909 133,428
Custodian fees .................... 211,418 41,638 60,468
Directors' fees ................... 81,565 14,865 18,886
Shareholder service fees .......... 1,354,692 173,712 367,979
Miscellaneous ..................... 116,289 39,665 119,890
------------ ----------- -----------
Total expenses ............... 18,966,332 2,443,466 4,740,272
Less: Fees waived ............... -- (199,650) --
------------ ----------- -----------
Net expenses ................. 18,966,332 2,243,816 4,740,272
------------ ----------- -----------
Net investment income ................ 177,724,556 21,436,434 28,391,169
------------ ----------- -----------
Net realized gain (loss) from
securities transactions ........... (11,811) 59,691 (28,471)
------------ ----------- -----------
Net increase in net assets resulting
from operations ................... $177,712,745 $21,496,125 $28,362,698
============ =========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
-------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PRIME SERIES TREASURY 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,
-------------- -------------- --------------- ------------
20001 2000 20001 2000
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income ................... $ 177,724,556 $ 233,249,832 $ 21,436,434 $ 35,973,978
Net realized gain (loss) from
securities transactions ............... (11,811) 23,373 59,691 119,476
-------------- -------------- -------------- -------------
Net increase in net assets resulting
from operations ....................... 177,712,745 233,273,205 21,496,125 36,093,454
-------------- -------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Deutsche Banc Alex. Brown Cash
Reserve Prime Shares, Treasury
Shares and Tax-Free Shares,
respectively ....................... (158,839,177) (204,114,790) (17,653,184) (30,901,564)
Deutsche Banc Alex. Brown Cash
Reserve Prime Institutional
Shares, Treasury Institutional
Shares and Tax-Free Institutional
Shares, respectively ............... (16,591,158) (24,839,929) (3,842,304) (5,013,361)
Flag Investors Class A Shares ......... (444,892) (729,448) -- --
Flag Investors Class B Shares ......... (98,177) (154,996) -- --
Flag Investors Class C Shares ......... (9,951) (2,633) -- --
Quality Cash Reserve Shares ........... (1,741,354) (3,408,016) -- --
-------------- -------------- -------------- -------------
Total distributions ................... (177,724,709) (233,249,812) (21,495,488) (35,914,925)
-------------- -------------- -------------- -------------
CAPITAL SHARE TRANSACTIONS, NET ............ (344,339,274) 2,291,071,504 (153,884,920) (50,330,491)
-------------- -------------- -------------- -------------
Total increase (decrease) in net assets . (344,351,238) 2,291,094,897 (153,884,283) (50,151,962)
NET ASSETS:
Beginning of period ..................... 6,504,861,249 4,213,766,352 889,110,857 939,262,819
-------------- -------------- -------------- -------------
End of period ........................... $6,160,510,011 $6,504,861,249 $ 735,226,574 $ 889,110,857
============== ============== ============== =============
<FN>
---------
1 Unaudited.
</FN>
</TABLE>
42
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TAX-FREE SERIES
---------------------------------------------------------------------------------------
For the Six For the
Months Ended Year Ended
September 30, March 31,
--------------- -------------
20001 2000
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income ........................ $ 28,391,169 $ 35,332,635
Net realized gain (loss) from
securities transactions .................... (28,471) (106,677)
-------------- --------------
Net increase in net assets resulting
from operations ............................ 28,362,698 35,225,958
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Deutsche Banc Alex. Brown Cash
Reserve Prime Shares, Treasury
Shares and Tax-Free Shares,
respectively ............................ (26,013,188) (32,091,271)
Deutsche Banc Alex. Brown Cash
Reserve Prime Institutional
Shares, Treasury Institutional
Shares and Tax-Free Institutional
Shares, respectively .................... (2,261,514) (3,357,831)
Flag Investors Class A Shares .............. -- --
Flag Investors Class B Shares .............. -- --
Flag Investors Class C Shares .............. -- --
Quality Cash Reserve Shares ................ -- --
-------------- --------------
Total distributions ........................ (28,274,702) (35,449,102)
-------------- --------------
CAPITAL SHARE TRANSACTIONS, NET ................. (84,201,435) 650,048,249
-------------- --------------
Total increase (decrease) in net assets ...... (84,113,439) 649,825,105
NET ASSETS:
Beginning of period .......................... 1,781,816,158 1,131,991,053
-------------- --------------
End of period ................................ $1,697,702,719 $1,781,816,158
============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(FOR SHARES OUTSTANDING THROUGHOUT EACH PERIOD)
DEUTSCHE BANC ALEX. BROWN CASH RESERVE PRIME SHARES
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six
Months Ended
September 30, For the Years Ended March 31,
--------------------------------------------------------------------------------------------------------------------------
20001 2000 1999 1998
<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 .......................... 0.0294 0.0480 0.0473 0.0494
LESS DISTRIBUTIONS:
Dividends from net investment income ........... (0.0294) (0.0480) (0.0473) (0.0494)
-------------- -------------- -------------- --------------
Net asset value at end of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00
============== ============== ============== ==============
TOTAL RETURN ...................................... 2.98% 4.90% 4.84% 5.05%
RATIOS TO AVERAGE NET ASSETS:
Expenses ....................................... 0.66%2 0.66% 0.63% 0.67%
Net investment income .......................... 5.85%2 4.86% 4.71% 4.94%
SUPPLEMENTAL DATA:
Net assets at end of period .................... $5,582,133,030 $5,772,616,045 $3,727,990,170 $3,164,537,551
Number of shares outstanding at end of period .. 5,582,035,613 5,772,511,318 3,727,906,079 3,164,529,071
<FN>
-----------
1 Unaudited.
2 Annualized.
</FN>
</TABLE>
44
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
----------------------------------------------------------------------------------
1997 1996
<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 ........................ 0.0478 0.0524
LESS DISTRIBUTIONS:
Dividends from net investment income ......... (0.0478) (0.0524)
-------------- --------------
Net asset value at end of period ............. $ 1.00 $ 1.00
============== ==============
TOTAL RETURN .................................... 4.88% 5.36%
RATIOS TO AVERAGE NET ASSETS:
Expenses ..................................... 0.63% 0.60%
Net investment income ........................ 4.78% 5.21%
SUPPLEMENTAL DATA:
Net assets at end of period .................. $2,545,532,365 $2,386,681,216
Number of shares outstanding at end of period 2,545,523,885 2,386,684,392
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(FOR SHARES OUTSTANDING THROUGHOUT EACH PERIOD)
DEUTSCHE BANC ALEX. BROWN CASH RESERVE PRIME INSTITUTIONAL SHARES
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six
Months Ended
September 30, For the Years Ended March 31,
-------------- --------------------------------------------------
20001 2000 1999 1998
<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 ............................ 0.0312 0.0511 0.0499 0.0519
LESS DISTRIBUTIONS:
Dividends from net investment income ............. (0.0312) (0.0511) (0.0499) (0.0519)
------------ ------------ ------------ ------------
Net asset value at end of period ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============
TOTAL RETURN ........................................ 3.16% 5.24% 5.11% 5.31%
RATIOS TO AVERAGE NET ASSETS:
Expenses ......................................... 0.30%2 0.34% 0.36% 0.42%
Net investment income ............................ 6.21%2 5.18% 4.98% 5.22%
SUPPLEMENTAL DATA:
Net assets at end of period ...................... $511,680,955 $637,767,262 $388,447,492 $317,971,693
Number of shares outstanding at end of period .... 511,676,824 637,758,133 388,440,636 317,971,413
<FN>
------------
1 Unaudited.
2 Annualized.
</FN>
</TABLE>
46
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
---------------------------------------------------------------------------------------
1997 1996
<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 .............................. 0.0503 0.0548
LESS DISTRIBUTIONS:
Dividends from net investment income ............... (0.0503) (0.0548)
------------ -----------
Net asset value at end of period ................... $ 1.00 $ 1.00
============ ===========
TOTAL RETURN .......................................... 5.15% 5.62%
RATIOS TO AVERAGE NET ASSETS:
Expenses ........................................... 0.38% 0.35%
Net investment income .............................. 5.04% 5.32%
SUPPLEMENTAL DATA:
Net assets at end of period ........................ $117,812,047 $53,699,315
Number of shares outstanding at end of period ...... 117,811,768 53,699,535
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(FOR SHARES OUTSTANDING THROUGHOUT EACH PERIOD)
DEUTSCHE BANC ALEX. BROWN CASH RESERVE TREASURY SHARES
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six
Months Ended
September 30, For the Years Ended March 31,
--------------------------------------------------------------------------------------------------------------------------
20001 2000 1999 1998
<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 ......................... 0.0269 0.0431 0.0427 0.0464
LESS DISTRIBUTIONS:
Dividends from net investment income .......... (0.0269) (0.0431) (0.0427) (0.0464)
------------ ------------ ------------ ------------
Net asset value at end of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============
TOTAL RETURN ..................................... 2.73% 4.40% 4.35% 4.74%
RATIOS TO AVERAGE NET ASSETS:
Expenses after waivers ........................ 0.61%2 0.61% 0.58% 0.59%
Expenses before waivers ....................... 0.66%2 0.66% 0.58% 0.59%
Net investment income ......................... 5.32%2 4.31% 4.26% 4.65%
SUPPLEMENTAL DATA:
Net assets at end of period ................... $647,473,595 $790,442,614 $816,700,318 $798,426,658
Number of shares outstanding at end of period . 647,249,989 790,218,742 816,622,190 798,354,129
<FN>
-----------
1 Unaudited.
2 Annualized.
</FN>
</TABLE>
48
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
------------------------------------------------------------------------------------
1997 1996
<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 ........................... 0.0453 0.0494
LESS DISTRIBUTIONS:
Dividends from net investment income ............ (0.0453) (0.0494)
------------ ------------
Net asset value at end of period ................ $ 1.00 $ 1.00
============ ============
TOTAL RETURN ....................................... 4.63% 5.05%
RATIOS TO AVERAGE NET ASSETS:
Expenses after waivers .......................... 0.61% 0.58%
Expenses before waivers ......................... 0.61% 0.58%
Net investment income ........................... 4.54% 4.94%
SUPPLEMENTAL DATA:
Net assets at end of period ..................... $678,444,803 $666,814,158
Number of shares outstanding at end of period ... 678,391,386 666,762,028
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
49
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(FOR SHARES OUTSTANDING THROUGHOUT EACH PERIOD)
DEUTSCHE BANC ALEX. BROWN CASH RESERVE TREASURY INSTITUTIONAL SHARES
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six
Months Ended
September 30, For the Years Ended March 31,
--------------------------------------------------------------------------------------------------------------------------
20001 2000 1999
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period ......................... $ 1.00 $ 1.00 $ 1.00
----------- ----------- ------------
IINCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................................... 0.0287 0.0462 0.0453
LESS DISTRIBUTIONS:
Dividends from net investment income ........................... (0.0287) (0.0462) (0.0453)
----------- ----------- ------------
Net asset value at end of period ............................... $ 1.00 $ 1.00 $ 1.00
=========== =========== ============
TOTAL RETURN ...................................................... 2.90% 4.72% 4.63%
RATIOS TO AVERAGE NET ASSETS:
Expenses after waivers ......................................... 0.27%2 0.29% 0.33%
Expenses before waivers ........................................ 0.32%2 0.34% 0.33%
Net investment income .......................................... 5.66%2 4.62% 4.54%
SUPPLEMENTAL DATA:
Net assets at end of period .................................... $87,752,979 $98,668,243 $122,562,501
Number of shares outstanding at end of period .................. 87,718,502 98,634,670 122,561,713
<FN>
-----------
1 Unaudited.
2 Annualized.
</FN>
</TABLE>
50
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
--------------------------------------------------------------------------------------------------------------------
1998 1997 1996
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period ....................... $ 1.00 $ 1.00 $ 1.00
----------- ----------- -----------
IINCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................................ 0.0489 0.0481 0.0523
LESS DISTRIBUTIONS:
Dividends from net investment income ......................... (0.0489) (0.0481) (0.0523)
----------- ----------- -----------
Net asset value at end of period ............................. $ 1.00 $ 1.00 $ 1.00
=========== =========== ===========
TOTAL RETURN .................................................... 5.00% 4.92% 5.36%
RATIOS TO AVERAGE NET ASSETS:
Expenses after waivers ....................................... 0.34% 0.33% 0.33%
Expenses before waivers ...................................... 0.34% 0.33% 0.33%
Net investment income ........................................ 4.91% 4.81% 5.12%
SUPPLEMENTAL DATA:
Net assets at end of period .................................. $98,780,023 $61,208,770 $51,822,757
Number of shares outstanding at end of period ................ 98,768,925 61,199,345 51,823,226
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(FOR SHARES OUTSTANDING THROUGHOUT EACH PERIOD)
DEUTSCHE BANC ALEX. BROWN CASH RESERVE TAX-FREE SHARES
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six
Months Ended
September 30, For the Years Ended March 31,
------------------------------------------------------------------------------------------------------------------------------
20001 2000 1999
<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 ....................................... 0.0177 0.0276 0.0277
LESS DISTRIBUTIONS:
Dividends from net investment income ........................ (0.0177) (0.0276) (0.0277)
-------------- -------------- --------------
Net asset value at end of period ............................ $ 1.00 $ 1.00 $ 1.00
============== ============== ==============
TOTAL RETURN ................................................... 1.78% 2.80% 2.81%
RATIOS TO AVERAGE NET ASSETS:
Expenses .................................................... 0.62%2 0.65% 0.58%
Net investment income ....................................... 3.53%2 2.78% 2.74%
SUPPLEMENTAL DATA:
Net assets at end of period ................................. $1,586,095,440 $1,664,369,824 $1,047,391,315
Number of shares outstanding at end of period ............... 1,586,320,197 1,664,677,357 1,047,493,739
<FN>
-----------
1 Unaudited.
2 Annualized.
</FN>
</TABLE>
52
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended March 31,
-------------------------------------------------------------------------------------------------------------------
1998 1997 1996
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period ....................... $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ........................................ 0.0306 0.0286 0.0318
LESS DISTRIBUTIONS:
Dividends from net investment income ......................... (0.0306) (0.0286) (0.0318)
------------ ------------ ------------
Net asset value at end of period ............................. $ 1.00 $ 1.00 $ 1.00
============ ============ ============
TOTAL RETURN .................................................... 3.10% 2.90% 3.23%
RATIOS TO AVERAGE NET ASSETS:
Expenses ..................................................... 0.60% 0.62% 0.60%
Net investment income ........................................ 3.05% 2.86% 3.16%
SUPPLEMENTAL DATA:
Net assets at end of period .................................. $841,184,924 $647,212,025 $571,507,000
Number of shares outstanding at end of period ................ 841,258,030 647,283,274 571,593,265
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
53
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(FOR SHARES OUTSTANDING THROUGHOUT EACH PERIOD)
DEUTSCHE BANC ALEX. BROWN CASH RESERVE TAX-FREE INSTITUTIONAL SHARES
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Period
For the Six For the For the June 2, 19971
Months Ended Year Ended Year Ended through
September 30, March 31, March 31, March 31,
------------ ------------ ----------- -----------
20003 2000 1999 1998
<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 ............................. 0.0193 0.0306 0.0303 0.0273
LESS DISTRIBUTIONS:
Dividends from net investment income .............. (0.0193) (0.0306) (0.0303) (0.0273)
------------ ------------ ----------- -----------
Net asset value at end of period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ =========== ===========
TOTAL RETURN ......................................... 1.94% 3.10% 3.07% 2.76%
RATIOS TO AVERAGE NET ASSETS:
Expenses .......................................... 0.31%2 0.35% 0.33% 0.35%2
Net investment income ............................. 3.84%2 3.09% 3.03% 3.29%2
SUPPLEMENTAL DATA:
Net assets at end of period ....................... $111,607,279 $117,446,334 $84,599,738 $76,682,752
Number of shares outstanding at end of period ..... 111,627,729 117,472,002 84,607,371 76,682,889
<FN>
-----------
1 Commencement of operations.
2 Annualized.
3 Unaudited.
</FN>
</TABLE>
54-55
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1 -- ORGANIZATION AND 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 management investment
company. Its objective is to seek as high a level of current income as is
consistent with preservation of capital and liquidity.
The Fund consists of three portfolios: the Prime Series, the Treasury
Series and the Tax-Free Series. The Prime Series consists of six classes:
Deutsche Banc Alex. Brown Cash Reserve Prime Shares ("Prime Shares"), Flag
Investors Cash Reserve Prime Class A Shares ("Flag Investors Class A Shares"),
Flag Investors Cash Reserve Prime Class B Shares ("Flag Investors Class B
Shares"), Flag Investors Cash Reserve Prime Class C Shares ("Flag Investors
Class C Shares") Quality Cash Reserve Prime Shares ("Quality Cash Shares") and
Deutsche Banc Alex. Brown Cash Reserve Prime Institutional Shares ("Prime
Institutional Shares"). 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. These financial statements present the Prime Series, the
Treasury Series and the Tax-Free Series.
When preparing the Fund's financial statements, management makes estimates
and assumptions to comply with accounting principles generally accepted in the
United States. These estimates affect 1) the assets and liabilities that we
report at the date of the financial statements; 2) the contingent assets and
liabilities that we disclose at the date of the financial statements; and 3) the
revenues and expenses that we report for the period. Our estimates could be
different from the actual results. The Fund's significant accounting policies
are:
A. VALUATION OF SECURITIES -- Each portfolio has a weighted average
maturity of 90 days or less. The Fund values portfolio securities on
the basis of amortized cost, which is in accordance with Rule 2a-7 of
the Investment Company Act of 1940, and which approximates market
value. Using this method, the Fund initially values a security at its
purchased cost. The Fund then values the investment at amortized cost
assuming a constant amortization to maturity of any discount or
premium.
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
56
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
NOTE 1 (CONCLUDED)
collateral's market value, including any accrued interest, is
sufficient if the broker defaults. The Fund's access to the collateral
may be delayed or limited if the broker defaults and the value of the
collateral declines or if the broker enters into an insolvency
proceeding.
C. FEDERAL INCOME TAXES -- The Fund determines its distributions according
to income tax regulations, which may be different from accounting
principles generally accepted in the United States. 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. SECURITIES TRANSACTIONS, INVESTMENT INCOME AND DISTRIBUTIONS -- The
Fund uses the trade date to account for securities 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
amortization of premiums and accretion of discounts. Dividends to
shareholders are declared daily. Dividend distributions or
reinvestments are made monthly.
E. EXPENSES -- Operating expenses for each share class and series are
recorded on an accrual basis, and are charged to that class' or series'
operations. If a Fund expense cannot be directly attributed to a share
class or series, the expense is prorated among the classes or series
that the expense affects and is based on the classes' or series'
relative net assets.
NOTE 2 -- INVESTMENT ADVISORY FEES, TRANSACTIONS WITH AFFILIATES AND
OTHER FEES
Investment Company Capital Corp. ("ICCC"), an indirect wholly owned
subsidiary of Deutsche Bank AG, is the investment advisor to each series. Under
the terms of the investment advisory agreement, the Fund pays ICCC a fee,
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 pays an additional fee that is calculated daily and paid monthly at the
annual rate of .03% of its average daily net assets.
57
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2 (CONTINUED)
ICCC also provides accounting services to the Fund. As compensation for
these services, the Prime Series, Treasury Series, and Tax-Free Series pay ICCC
an annual fee that is calculated daily and paid monthly from the three series'
average daily net assets. The Prime Series paid $94,902, the Treasury Series
paid $64,824 and the Tax-Free Series paid $72,953 for accounting services for
the six months ended September 30, 2000.
ICCC also provides transfer agency services to the Fund. As compensation
for its transfer agent services, the three series pay ICCC a per account fee
that is calculated and paid monthly. The Prime Series paid $1,854,563, the
Treasury Series paid $180,909 and the Tax-Free Series paid $133,428 to ICCC for
transfer agency services for the six months ended September 30, 2000.
ICC Distributors, Inc. ("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, 2000, distribution fees
aggregated $7,061,696, $19,591, $868,561 and $1,839,894 for distribution
services for the Prime Shares, Flag Investors Class A Shares, Treasury Shares
and Tax-Free Shares, respectively. The Quality Cash Shares, Flag Investors Class
B Shares and Flag Investors Class C Shares also pay ICC Distributors an annual
fee for distribution services. This fee is equal to 0.60% of the Quality Cash
Shares' aggregate average daily net assets or $188,826 for the six months ended
September 30, 2000, and 1.00% (including a 0.25% shareholder servicing fee) of
the Flag Investors Class B and Class C Shares' aggregate average daily net
assets or $19,144 and $1,858, respectively, for the six months ended September
30, 2000.
ICC Distributors is not affiliated with ICCC. ICCC may voluntarily waive a
portion of its advisory fees for the Prime, Treasury and Tax-Free Series to
preserve or enhance each series' performance. ICCC did not waive any advisory
fees for the Prime or Tax-Free Series for the six months ended September 30,
2000.
The Advisor waives 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 0.66% on the Treasury Shares and
Management Fees would be 0.25% and Total Fund Operating Expenses would be 0.32%
on the Treasury Institutional Shares based on average daily net assets. The
waiver is contractual and will continue until July 31, 2001 and may be extended.
Effective January 1, 1999, the Fund has adopted a Shareholder Service Plan
(the "Plan") for the Deutsche Banc Alex. Brown Cash Reserve Fund of the Prime,
Treasury and Tax-Free Series of the Fund ("Shares") in order to provide
compensation to third parties who provide shareholder services to clients, who
from time to time beneficially
58
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
NOTE 2 (CONCLUDED)
own shares. In consideration of these services provided by any Shareholder
Servicing Agent, the Fund will pay the Distributor an annual fee, calculated
daily and paid monthly, equal to 0.05% of the shares' average daily net assets.
The Fund's complex offers a retirement plan for eligible Directors. The
actuarially computed pension expense (credit) allocated to the Fund for the six
months ended September 30, 2000 was $(21,859) for the Prime Series, $11,005 for
the Treasury Series and $49,924 for the Tax-Free Series. The accrued liability
at September 30, 2000 was $151,393 for the Prime Series, $49,973 for the
Treasury Series and $113,631 for the Tax-Free Series.
NOTE 3 -- CAPITAL STOCK AND SHARE INFORMATION
The Fund is authorized to issue up to 12.81 billion shares of $.001 par
value capital stock (8.66 billion Prime Series, 1.55 billion Treasury Series,
2.25 billion Tax-Free Series and 350 million undesignated). Transactions in
shares of the Fund were as follows:
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
September 30, 20001 March 31, 2000
-------------------- ----------------
<S> <C> <C>
PRIME SERIES:
SOLD:
Prime Shares .......................... 18,614,210,956 35,722,744,712
Flag Investors Class A Shares ......... 201,891,502 333,773,644
Flag Investors Class B Shares ......... 8,087,180 10,774,115
Flag Investors Class C Shares ......... 680,321 1,047,381
Prime Institutional Shares ............ 5,702,187,295 8,800,227,522
Quality Cash Shares ................... 141,973,604 430,807,975
ISSUED AS REINVESTMENT OF DIVIDENDS:
Prime Shares .......................... 148,110,433 191,935,470
Flag Investors Class A Shares ......... 295,647 564,622
Flag Investors Class B Shares ......... 84,279 131,700
Flag Investors Class C Shares ......... 6,669 1,722
Prime Institutional Shares ............ 13,712,696 19,239,279
Quality Cash Shares ................... 1,651,536 3,348,365
REDEEMED:
Prime Shares .......................... (18,952,797,142) (33,870,074,943)
Flag Investors Class A Shares ......... (208,262,582) (331,152,236)
Flag Investors Class B Shares ......... (6,870,001) (10,282,099)
Flag Investors Class C Shares ......... (928,576) (270,588)
Prime Institutional Shares ............ (5,841,981,300) (8,570,149,304)
Quality Cash Shares ................... (166,391,791) (441,595,833)
--------------- ---------------
Net increase (decrease) ............ (344,339,274) 2,291,071,504
=============== ===============
<FN>
-------------
1 Unaudited.
</FN>
</TABLE>
59
<PAGE>
DEUTSCHE BANC ALEX. BROWN CASH RESERVE FUND
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
NOTE 3 (CONCLUDED)
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
September 30, 20001 March 31, 2000
-------------------- --------------
<S> <C> <C>
TREASURY SERIES:
SOLD:
Treasury Shares ............................ 1,789,677,256 4,352,118,565
Treasury Institutional Shares .............. 154,335,512 386,540,151
ISSUED AS REINVESTMENT OF DIVIDENDS:
Treasury Shares ............................ 17,644,925 29,701,483
Treasury Institutional Shares .............. 2,003,790 4,078,676
REDEEMED:
Treasury Shares ............................ (1,950,290,934) (4,408,223,496)
Treasury Institutional Shares .............. (167,255,469) (414,545,870)
-------------- --------------
Net decrease ............................ (153,884,920) (50,330,491)
============== ==============
TAX-FREE SERIES:
SOLD:
Tax-Free Shares ............................ 4,185,078,422 8,346,727,898
Tax-Free Institutional Shares .............. 407,701,756 826,245,946
ISSUED AS REINVESTMENT OF DIVIDENDS:
Tax-Free Shares ............................ 24,164,017 30,121,404
Tax-Free Institutional Shares .............. 1,198,122 1,535,934
REDEEMED:
Tax-Free Shares ............................ (4,287,599,598) (7,759,665,684)
Tax-Free Institutional Shares .............. (414,744,154) (794,917,249)
-------------- --------------
Net increase (decrease) ................. (84,201,435) 650,048,249
============== ==============
</TABLE>
NOTE 4 -- CAPITAL LOSS CARRYFORWARDS
At September 30, 2000, 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 and after
------------- ---- ---- ---- ---- --------------
<S> <C> <C> <C> <C> <C> <C>
Prime Series -- -- -- -- -- --
Treasury Series -- -- -- -- -- --
Tax-Free Series $108,988 -- $6,268 $21,858 $26,991 $53,871
<FN>
-------------
1 Unaudited.
</FN>
</TABLE>
60
<PAGE>
BOARD OF DIRECTORS
--------------------------------------------------------------------------------
RICHARD T. HALE EUGENE J. McDONALD
CHAIRMAN DIRECTOR
RICHARD R. BURT REBECCA W. RIMEL
DIRECTOR DIRECTOR
JOSEPH R. HARDIMAN TRUMAN T. SEMANS
DIRECTOR DIRECTOR
LOUIS E. LEVY ROBERT H. WADSWORTH
DIRECTOR DIRECTOR
OFFICERS
--------------------------------------------------------------------------------
CARL W. VOGT, Esq. 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 COMPANY
130 Liberty Street
New York, NY 10006
<PAGE>
Deutsche Banc ALEX. BROWN PRSRT STD
CASH RESERVE FUND U.S.Postage
P.O. Box 1346 PAID
Baltimore, MD 21203 Lancaster, PA
Permit No. 1793
