<PAGE> 1
Cash Account Trust 1
- --------------------------------------------------------------------------------
DEAR SHAREHOLDERS:
- --------------------------------------------------------------------------------
We are pleased to provide you with the Cash Account Trust semiannual
report for the six-month period ended October 31, 1995. Your Fund's management
greatly appreciates your decision to invest in Cash Account Trust. During the
past six months, each of the Fund's Portfolios -- Money Market, Government
Securities and Tax-Exempt, registered solid performance. Please take a moment
to review the Portfolio Results which appear at the end of this letter.
ECONOMIC REVIEW AND OUTLOOK
The momentum of the 1994 economic expansion has continued on into 1995, as
evidenced by growth in personal income, consumer spending, construction spending
and hiring during the six-month period ended October 31, 1995.
It was over a year ago that the Federal Reserve Board initiated a series of rate
hikes intended to slow economic growth and keep inflation in check. While other
markets reacted negatively to the rising rate environment, it had a positive
effect on the short-term money markets. Cash Account Trust took advantage of
rising interest rates by investing in high quality, short-term money market
instruments.
Looking ahead, we anticipate the economy will grow at a moderate pace. Inflation
should not become a problem, and we anticipate an extended period of interest
rate stability, perhaps with a slight downward bias if significant progress from
Washington is made in reducing the U.S. budget deficit. While investments in
other markets may remain volatile, money market funds such as Cash Account Trust
should offer the opportunity for attractive yields and should continue to be an
excellent place to invest your money.
Your Fund's management thanks you for the vote of confidence you have shown
through your investment, and continues its dedication to performance. We look
forward to serving your investment needs for years to come.
Sincerely,
John W. Stuebe
John W. Stuebe
Vice President and Portfolio Manager
November 14, 1995
John Stuebe is Vice President of Kemper Financial Services, Inc. and Vice
President and Portfolio Manager of Cash Account Trust. Mr. Stuebe holds a BS
degree in finance from the University of Illinois and a MS degree in economics
from DePaul University.
PORTFOLIO RESULTS
For the six months ended October 31, 1995, the Fund's three Portfolios had the
following net annualized yields:
The Money Market Portfolio had a net annualized yield of 5.00%.
The Government Securities Portfolio had a net annualized yield of 5.07%.
The Tax-Exempt Portfolio had a net annualized yield of 3.27% and a
tax-equivalent yield of 5.20%.*
An investment in the Fund is neither insured nor guaranteed by the U.S.
Government, and there can be no assurance that the Fund will be able to maintain
a stable net asset value of $1.00 per share.
STATISTICAL NOTE
The Fund's net annualized yield for the six months ended October 31, 1995, is
the annualized sum of the daily dividend rates for the period. Yields are
historical and may not represent future yields, which will fluctuate.
*The tax-equivalent yield is based on a marginal tax rate of 37.1%. Income from
the Tax-Exempt Portfolio may be subject to state and local taxes, and, for some
investors, a portion of income may be subject to the alternative minimum tax.
<PAGE> 2
Cash Account Trust 2
- --------------------------------------------------------------------------------
SPECIAL SHAREHOLDERS MEETING
- --------------------------------------------------------------------------------
On October 17, 1995, the results of the proxy solicitation were announced at an
adjourned, joint special shareholders meeting. Cash Account Trust shareholders
were asked to vote on four separate issues: election of nine Trustees to the
Board of Trustees, ratification of Ernst & Young LLP as independent auditors,
approval of a new investment management agreement with Kemper Financial
Services, Inc., or its successor on the same terms as the current agreement and
approval of a new 12b-1 distribution plan with Kemper Distributors, Inc. or its
successor on the same terms as the current plan. We are pleased to report that
all nominees were elected and all other items were approved. Following are the
results of each issue:
1) Election of Trustees
<TABLE>
<CAPTION>
For Withheld
<S> <C> <C>
David W. Belin 324,226,372 0
Lewis A. Burnham 324,226,372 0
Donald L. Dunaway 324,226,372 0
Robert B. Hoffman 324,226,372 0
Donald R. Jones 324,226,372 0
David B. Mathis 324,226,372 0
Shirley D. Peterson 324,226,372 0
William P. Sommers 324,226,372 0
Stephen B. Timbers 324,226,372 0
</TABLE>
2) Ratification of the selection of Ernst & Young LLP as independent auditors
for the fund
<TABLE>
<CAPTION>
For Against Abstain
<S> <C> <C>
317,220,414 3,875,606 4,804,102
</TABLE>
3) Approval of new investment management agreement
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
For Against Abstain
<S> <C> <C>
203,391,342 2,961,085 1,043,525
</TABLE>
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES PORTFOLIO
For Against Abstain
<S> <C> <C>
75,571,750 3,482,500 1,562,143
</TABLE>
<TABLE>
<CAPTION>
TAX-EXEMPT PORTFOLIO
For Against Abstain
<S> <C> <C>
36,258,912 604,875 577,736
</TABLE>
4) Approval of new 12b-1 distribution plan
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
For Against Abstain
<S> <C> <C>
230,391,342 4,936,048 4,512,740
</TABLE>
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES PORTFOLIO
For Against Abstain
<S> <C> <C>
72,175,219 5,962,074 2,479,100
</TABLE>
<TABLE>
<CAPTION>
TAX-EXEMPT PORTFOLIO
For Against Abstain
<S> <C> <C>
36,258,912 571,457 561,957
</TABLE>
<PAGE> 3
Cash Account Trust 3
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
Investments at October 31, 1995
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CORPORATE OBLIGATIONS Value
<S> <C>
BANKING--2.0%
- -------------------------------------------------------
Nordbanken North America, Inc.
5.80%, 12/13/95 $ 7,946
- -------------------------------------------------------
CAPITAL AND MORTGAGE LENDING--3.9%
- -------------------------------------------------------
Countrywide Funding Corporation
5.85%, 11/8/95 7,991
- -------------------------------------------------------
PHH Corporation
5.76%, 11/30/95 7,963
- -------------------------------------------------------
15,954
CAPTIVE BUSINESS FINANCE--10.2%
- -------------------------------------------------------
(a)American Honda Finance Corporation
5.88%, 11/9/95 7,999
- -------------------------------------------------------
(a)Capital One Funding Corporation
5.82%, 11/7/95 9,565
- -------------------------------------------------------
Chrysler Financial Corporation
5.81%, 12/27/95 7,929
- -------------------------------------------------------
Enterprise Capital Funding Corporation
5.78%, 11/9/95 7,990
- -------------------------------------------------------
(a)Finova Capital Corporation
5.98%, 12/15/95 8,000
- -------------------------------------------------------
41,483
CONSUMER FINANCING--7.8%
- -------------------------------------------------------
JTB Finance Americas
5.95% - 5.96%, 11/21/95 - 11/28/95 15,938
- -------------------------------------------------------
Mitsubishi Motors Credit of America, Inc.
6.01%, 1/19/96 7,896
- -------------------------------------------------------
Whirlpool Financial Corporation
5.76%, 11/30/95 7,963
- -------------------------------------------------------
31,797
CONSUMER PRODUCTS AND SERVICES--7.9%
- -------------------------------------------------------
American Home Products Corporation
5.84%, 11/9/95 7,990
- -------------------------------------------------------
Coca-Cola Enterprises Inc.
5.80%, 11/15/95 7,982
- -------------------------------------------------------
Quaker Oats Company
5.81%, 12/28/95 7,927
- -------------------------------------------------------
Sony Capital Corporation
5.76%, 12/8/95 7,953
- -------------------------------------------------------
31,852
CORPORATE FINANCING--9.8%
- -------------------------------------------------------
Astro Capital Corp.
5.91%, 11/30/95 7,962
- -------------------------------------------------------
(a)Beta Finance Corporation
5.54%, 11/7/95 8,000
- -------------------------------------------------------
CXC Incorporated
5.73%, 12/15/95 7,945
- -------------------------------------------------------
First Brands Commercial, Inc.
5.78%, 12/4/95 7,958
- -------------------------------------------------------
<CAPTION>
Value
<S> <C>
Windmill Funding Corporation
5.76%, 11/29/95 $ 7,964
- -------------------------------------------------------
39,829
ENERGY AND UTILITIES--2.8%
- -------------------------------------------------------
New Hampshire Industrial Development Authority
5.82%, 12/13/95 3,500
- -------------------------------------------------------
Ontario Hydro, Canada
5.80%, 11/20/95 7,976
- -------------------------------------------------------
11,476
FINANCIAL INSTITUTIONS--9.0%
- -------------------------------------------------------
(a)Bear Stearns Companies Inc.
5.93% - 6.01%, 11/10/95 - 11/20/95 8,000
- -------------------------------------------------------
(a)CS First Boston, Inc.
5.95%, 11/8/95 8,500
- -------------------------------------------------------
(a)Federal National Mortgage Association
5.55%, 11/7/95 4,937
- -------------------------------------------------------
(a)Goldman, Sachs & Co.
5.89%, 11/27/95 8,000
- -------------------------------------------------------
(a)(b)Lehman Brothers Holdings Inc.
5.98%, 11/15/95 7,000
- -------------------------------------------------------
36,437
MANUFACTURING--3.9%
- -------------------------------------------------------
Bridgestone/Firestone, Inc.
6.20%, 1/22/96 7,889
- -------------------------------------------------------
DIC Americas Inc.
5.93%, 11/2/95 7,999
- -------------------------------------------------------
15,888
MUNICIPAL AND STATE OBLIGATIONS--1.9%
- -------------------------------------------------------
(a)(b)(c)Orange County, California
6.83%, 6/30/96
$5,000,000 (cost and par) 4,731
Letter of credit from The Bank of New York 269
- -------------------------------------------------------
(a)Texas, General Obligation
5.84%, 11/7/95 2,500
- -------------------------------------------------------
7,500
RECEIVABLES FINANCING--13.0%
- -------------------------------------------------------
Cooperative Receivables Corporation
5.90%, 11/1//95 8,000
- -------------------------------------------------------
Dynamic Funding Corporation
6.15%, 1/31/96 7,878
- -------------------------------------------------------
Eiger Capital Corporation
5.84%, 11/6/95 7,995
- -------------------------------------------------------
Heller International Corporation
5.83%, 11/6/95 4,996
- -------------------------------------------------------
Preferred Receivables Funding Corporation
5.76%, 11/14/95 7,983
- -------------------------------------------------------
Sheffield Receivables
5.76%, 11/6/95 7,994
- -------------------------------------------------------
</TABLE>
<PAGE> 4
Cash Account Trust 4
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
Investments at October 31, 1995
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
Working Capital Management Co. L.P.
5.89%, 11/30/95 $ 7,962
- -------------------------------------------------------
52,808
- -------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS--72.2%
(average maturity: 26 days) 292,970
- -------------------------------------------------------
BANK OBLIGATIONS
Bank of America Illinois
5.75%, 11/9/95 5,000
- -------------------------------------------------------
(a)Boatman's Credit Card Bank
5.88%, 12/4/95 5,000
- -------------------------------------------------------
MBNA America Bank N.A.
5.90%, 2/5/96 8,500
- -------------------------------------------------------
Mellon Bank Corporation
5.75%, 2/6/96 5,000
- -------------------------------------------------------
TOTAL BANK OBLIGATIONS--5.8%
(average maturity: 64 days) 23,500
- -------------------------------------------------------
(d)REPURCHASE AGREEMENTS
(Dated 9/95 and 10/95, collateralized by
Federal Home Loan Mortgage Corporation and
Federal National Mortgage Association
Securities)
- -------------------------------------------------------
Goldman, Sachs & Co.
(held at The Bank of New York)
5.74%, 11/21/95 - 11/22/95 30,000
- -------------------------------------------------------
Lehman Government Securities, Inc.
(held at Chemical Bank)
5.70%, 11/29/95 10,000
- -------------------------------------------------------
Salomon, Inc.
(held at The Bank of New York)
5.70% - 5.78%, 11/3/95 - 11/28/95 50,000
- -------------------------------------------------------
<CAPTION>
Value
<S> <C>
TOTAL REPURCHASE AGREEMENTS--22.1%
(average maturity: 21 days) $ 90,000
- -------------------------------------------------------
TOTAL INVESTMENTS--100.1%
(average maturity: 27 days) 406,470
- -------------------------------------------------------
LIABILITIES, LESS OTHER ASSETS--(.1)% (567)
- -------------------------------------------------------
NET ASSETS--100% $405,903
- -------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 5
Cash Account Trust 5
- --------------------------------------------------------------------------------
GOVERNMENT SECURITIES PORTFOLIO
Investments at October 31, 1995
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. TREASURY NOTES--1.7% Value
<S> <C>
5.75%, 5/15/96
(average maturity: 196 days) $ 3,024
- ---------------------------------------------------------
SHORT-TERM NOTES
(Issued or guaranteed by U.S. Government
agencies or instrumentalities)
- ---------------------------------------------------------
(a)Export-Import Bank of the United States
Kuwait Investment Authority
5.78%, 11/15/95 3,200
- ---------------------------------------------------------
Federal Farm Credit Banks
5.81%, 8/1/96 3,198
- ---------------------------------------------------------
Federal Home Loan Bank
(a) 5.83%, 11/2/95 2,201
5.85%, 5/15/96 7,805
- ---------------------------------------------------------
Federal Home Loan Bank
Downey Savings & Loan
5.66%, 3/8/96 2,942
Fidelity Federal Bank
5.81%, 11/30/95 2,190
- ---------------------------------------------------------
(a)Federal Home Loan Mortgage Corporation
5.70%, 11/15/95 2,500
- ---------------------------------------------------------
Federal National Mortgage Association
(a) 5.55% - 6.35%, 11/1/95 - 11/7/95 12,847
5.60% - 5.77%, 12/13/95 - 6/21/96 17,994
- ---------------------------------------------------------
(a)Student Loan Marketing Association
5.57%, 11/1/95 13,320
- ---------------------------------------------------------
TOTAL SHORT-TERM NOTES--37.7%
(average maturity: 63 days) 68,197
- ---------------------------------------------------------
(d)REPURCHASE AGREEMENTS
(dated 9/95 and 10/95, collateralized by Federal
Home Loan Mortgage Corporation and Federal
National Mortgage Association Securities)
- ---------------------------------------------------------
Bear, Stearns & Co. Inc.
5.80%, 11/1/95 8,500
- ---------------------------------------------------------
<CAPTION>
Value
<S> <C>
Chase Manhattan Corporation
(held at Chemical Bank)
5.78%, 11/6/95 $ 8,500
- ---------------------------------------------------------
CS First Boston Inc.
(held at Chemical Bank)
5.75%, 11/17/95 23,500
- ---------------------------------------------------------
Donaldson, Lufkin & Jenrette Securities
Corporation
(held at Chemical Bank)
5.80%, 12/4/95 - 1/2/96 17,000
- ---------------------------------------------------------
Goldman, Sachs & Co.
(held at The Bank of New York)
5.73%, 11/22/95 15,000
- ---------------------------------------------------------
Nikko Securities Co. International
5.73%, 11/1/95 7,000
- ---------------------------------------------------------
Nomura Securities International, Inc.
(held at The Bank of New York)
5.79%, 11/15/95 21,000
- ---------------------------------------------------------
Salomon Brothers Inc.
(held at The Bank of New York)
5.70% - 5.80%, 11/30/95 - 12/27/95 9,000
- ---------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS--60.4%
(average maturity: 19 days) 109,500
- ---------------------------------------------------------
TOTAL INVESTMENTS--99.8%
(average maturity: 39 days) 180,721
- ---------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES--.2% 286
- ---------------------------------------------------------
NET ASSETS--100% $181,007
- ---------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 6
Cash Account Trust 6
- --------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO
Investments at October 31, 1995
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(A)VARIABLE RATE
DEMAND SECURITIES Value
<S> <C>
CALIFORNIA
- ---------------------------------------------------------
Lancaster
Redevelopment Agency
3.90% $ 1,000
- ---------------------------------------------------------
Los Angeles
Harbor Improvements Corporation
4.15% 2,000
ILLINOIS
- ---------------------------------------------------------
Chicago
O'Hare International Airport
4.05% 2,480
- ---------------------------------------------------------
Development Finance Authority
3.85% 2,000
INDIANA
- ---------------------------------------------------------
Fort Wayne
Hospital Authority
4.15% 2,135
IOWA
- ---------------------------------------------------------
Louisa County
Pollution Control Revenue
3.95% 500
LOUISIANA
- ---------------------------------------------------------
Jefferson Parish
Hospital Revenue
4.05% 2,180
MARYLAND
- ---------------------------------------------------------
Health and Higher Educational Facilities
Authority
3.85% 2,000
NEW YORK
- ---------------------------------------------------------
New York City
Municipal Water Finance Authority
4.00% 1,000
PENNSYLVANIA
- ---------------------------------------------------------
Delaware Valley
Regional Finance Authority
4.05% 1,700
- ---------------------------------------------------------
Philadelphia
Redevelopment Authority
4.00% 1,600
- ---------------------------------------------------------
TENNESSEE
- ---------------------------------------------------------
Maury County
Industrial Development Board
4.30% $ 2,000
- ---------------------------------------------------------
Smyrna Housing Association, Inc.
Multi-family Housing Revenue
4.10% 2,000
TEXAS
- ---------------------------------------------------------
Calhoun County
Navigation Industrial Development Authority
4.30% 1,000
- ---------------------------------------------------------
Nueces River Authority
Pollution Control Revenue
4.20% 1,200
VIRGINIA
- ---------------------------------------------------------
Louisa County
Industrial Development Authority
4.00% 2,000
WISCONSIN
- ---------------------------------------------------------
Eau Claire
Solid Waste Disposal Revenue
4.10% 1,800
- ---------------------------------------------------------
TOTAL VARIABLE RATE
DEMAND SECURITIES--41.1%
(average maturity: 6 days) 28,595
- ---------------------------------------------------------
OTHER SECURITIES
ALABAMA
- ---------------------------------------------------------
Mobile
Port City Medical Clinic Board
3.90%, 11/8/95 1,000
ALASKA
- ---------------------------------------------------------
Valdez
Marine Terminal Revenue Refunding
3.80%, 12/14/95 1,800
COLORADO
- ---------------------------------------------------------
Denver City and County
Airport System Revenue
4.25% - 4.35%, 12/11/95 - 1/18/96 2,000
- ---------------------------------------------------------
Platte River Power Authority
3.80%, 11/14/95 1,500
GEORGIA
- ---------------------------------------------------------
Municipal Electric Authority
4.05% - 3.95%, 11/7/95 - 11/9/95 3,000
- ---------------------------------------------------------
</TABLE>
<PAGE> 7
Cash Account Trust 7
- --------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO
Investments at October 31, 1995
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
ILLINOIS
- ---------------------------------------------------------
Chicago
General Obligation
4.00%, 3/14/96 $ 2,500
INDIANA
- ---------------------------------------------------------
Jasper County
Pollution Control Revenue
3.85%, 2/8/96 1,900
- ---------------------------------------------------------
Mount Vernon
Pollution Control and Solid Waste Disposal
Revenue
3.90%, 11/9/95 1,500
- ---------------------------------------------------------
Sullivan
Pollution Control Revenue
3.90%, 12/11/95 2,000
KANSAS
- ---------------------------------------------------------
Burlington
Pollution Control Revenue
3.85%, 12/14/95 2,000
KENTUCKY
- ---------------------------------------------------------
Danville
Multi-City Lease Revenue
3.90%, 12/12/95 1,000
- ---------------------------------------------------------
Pendleton County
Multi-County Lease Revenue
3.85%, 11/7/95 1,000
MASSACHUSETTS
- ---------------------------------------------------------
Industrial Finance Agency
3.70%, 12/8/95 1,150
MICHIGAN
- ---------------------------------------------------------
Strategic Fund
Pollution Control Revenue
3.85%, 11/8/95 1,000
NEW HAMPSHIRE
- ---------------------------------------------------------
Business Finance Authority
3.95%, 12/21/95 1,500
NEW YORK
- ---------------------------------------------------------
Nassau County
Tax Anticipation Notes
3.90%, 4/15/96 802
- ---------------------------------------------------------
New York City
Revenue Anticipation Notes
3.90%, 4/11/96 1,003
- ---------------------------------------------------------
PENNSYLVANIA
- ---------------------------------------------------------
Philadelphia
School District
3.95%, 6/28/96 $ 1,003
- ---------------------------------------------------------
Gas Works Revenue
3.85%, 2/8/96 1,000
SOUTH CAROLINA
- ---------------------------------------------------------
York County
Pollution Control Facilities Revenue
3.60%, 12/11/95 3,000
TEXAS
- ---------------------------------------------------------
A & M University System
3.80%, 1/17/96 2,000
- ---------------------------------------------------------
Brazoria County
Brazos River Harbor Navigation District
3.85%, 11/8/95 1,000
- ---------------------------------------------------------
San Antonio
Electric and Gas Systems
3.80%, 2/15/96 2,300
- ---------------------------------------------------------
Tax and Revenue Anticipation Notes
3.94%, 8/30/96 503
VIRGINIA
- ---------------------------------------------------------
Chesterfield
Industrial Development Authority
3.90%, 12/13/95 1,850
WEST VIRGINIA
- ---------------------------------------------------------
Public Energy Authority
3.90%, 11/9/95 1,000
- ---------------------------------------------------------
TOTAL OTHER SECURITIES--57.9%
(average maturity: 62 days) 40,311
- ---------------------------------------------------------
TOTAL INVESTMENTS--99.0%
(average maturity: 39 days) 68,906
- ---------------------------------------------------------
CASH AND OTHER ASSETS, LESS LIABILITIES--1.0% 727
- ---------------------------------------------------------
NET ASSETS -- 100% $69,633
- ---------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 8
Cash Account Trust 8
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIOS OF INVESTMENTS
- --------------------------------------------------------------------------------
Interest rates represent annualized yield to date of maturity, except for
variable rate securities described in Note (a). For each security, except as
described in Note (c), cost (for financial reporting and federal income tax
purposes) and carrying value are the same. Likewise, carrying value approximates
principal amount.
(a) Variable rate securities. The rates shown are the current rates at October
31, 1995. The dates shown represent the demand date or the next interest rate
change date. Securities in the Tax-Exempt Portfolio shown without a date are
payable within five business days and are backed by credit support agreements
from banks or insurance institutions.
(b) Illiquid securities. At October 31, 1995, the aggregate value of illiquid
securities was $12,000,000 in the Money Market Portfolio, which represented 3.0%
of net assets.
(c) See Note (3) of the Notes to Financial Statements.
(d) Repurchase agreements are fully collateralized by U.S. Government
securities. All collateral is held at the Fund's custodian bank, Investors
Fiduciary Trust Company, or at subcustodian banks, as indicated. The collateral
is monitored daily by the Fund so that its market value exceeds the carrying
value of the repurchase agreement.
See accompanying Notes to Financial Statements.
<PAGE> 9
Cash Account Trust 9
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1995
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY GOVERNMENT
MARKET SECURITIES TAX-EXEMPT
ASSETS PORTFOLIO PORTFOLIO PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investments, at amortized cost:
Short-term securities $ 316,470 71,221 68,906
- ------------------------------------------------------------------------------------------------------------------------
Repurchase agreements 90,000 109,500 --
- ------------------------------------------------------------------------------------------------------------------------
Cash -- -- 486
- ------------------------------------------------------------------------------------------------------------------------
Interest receivable 1,713 1,078 352
- ------------------------------------------------------------------------------------------------------------------------
Total assets 408,183 181,799 69,744
- ------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------
Cash overdraft 1,506 433 --
- ------------------------------------------------------------------------------------------------------------------------
Payable for:
Dividends 436 199 48
- ------------------------------------------------------------------------------------------------------------------------
Management fee 61 1 4
- ------------------------------------------------------------------------------------------------------------------------
Distribution fee 204 91 29
- ------------------------------------------------------------------------------------------------------------------------
Custodian and transfer agent fees and related expenses 21 19 7
- ------------------------------------------------------------------------------------------------------------------------
Other 52 49 23
- ------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,280 792 111
- ------------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 405,903 181,007 69,633
- ------------------------------------------------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------
Paid-in capital $ 407,319 181,007 69,633
- ------------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on investments (1,416) -- --
- ------------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 405,903 181,007 69,633
- ------------------------------------------------------------------------------------------------------------------------
THE PRICING OF SHARES
- ------------------------------------------------------------------------------------------------------------------------
Shares outstanding, no par value 405,903 181,007 69,633
- ------------------------------------------------------------------------------------------------------------------------
Net asset value and redemption price per share $1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE> 10
Cash Account Trust 10
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
Six months ended October 31, 1995
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY GOVERNMENT
MARKET SECURITIES TAX-EXEMPT
PORTFOLIO PORTFOLIO PORTFOLIO
----------------------------------------------------
<S> <C> <C> <C>
INTEREST INCOME $12,082 5,053 1,451
- ------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fee 440 185 78
- ------------------------------------------------------------------------------------------------------------------------
Distribution fee 1,199 505 178
- ------------------------------------------------------------------------------------------------------------------------
Custodian and transfer agent fees and related expenses 306 106 41
- ------------------------------------------------------------------------------------------------------------------------
Registration costs 109 90 77
- ------------------------------------------------------------------------------------------------------------------------
Professional fees 19 7 3
- ------------------------------------------------------------------------------------------------------------------------
Reports to shareholders 22 5 3
- ------------------------------------------------------------------------------------------------------------------------
Trustees' fees and other 10 4 2
- ------------------------------------------------------------------------------------------------------------------------
2,105 902 382
- ------------------------------------------------------------------------------------------------------------------------
Less expenses waived by the investment manager (92) (139) (102)
- ------------------------------------------------------------------------------------------------------------------------
Total expenses absorbed by the Portfolio 2,013 763 280
- ------------------------------------------------------------------------------------------------------------------------
Net investment income 10,069 4,290 1,171
- ------------------------------------------------------------------------------------------------------------------------
Change in unrealized depreciation on investments (590) -- --
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 9,479 4,290 1,171
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
Six months ended October 31, 1995 and year ended April 30, 1995
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET GOVERNMENT TAX-EXEMPT
PORTFOLIO SECURITIES PORTFOLIO PORTFOLIO
-------------------------------------------------------------------------------------
OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30,
1995 1995 1995 1995 1995 1995
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS, DIVIDENDS AND CAPITAL ACTIVITY
Net investment income $ 10,069 12,814 4,290 3,981 1,171 1,459
- ---------------------------------------------------------------------------------------------------------------------------------
Change in unrealized depreciation (590) (826) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Capital contribution from investment
manager 590 826 -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net
investment income (10,069) (12,814) (4,290) (3,981) (1,171) (1,459)
- ---------------------------------------------------------------------------------------------------------------------------------
Capital share transactions
(dollar amounts and number of shares are the same):
Shares sold 620,088 998,198 334,427 406,191 119,085 214,193
- ---------------------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of dividends 10,116 12,434 4,264 3,814 1,181 1,404
- ---------------------------------------------------------------------------------------------------------------------------------
630,204 1,010,632 338,691 410,005 120,266 215,597
Less shares redeemed 602,852 788,234 295,704 302,814 118,381 164,840
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase from capital share
transactions and total increase in net
assets 27,352 222,398 42,987 107,191 1,885 50,757
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 378,551 156,153 138,020 30,829 67,748 16,991
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 405,903 378,551 181,007 138,020 69,633 67,748
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE> 11
Cash Account Trust 11
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. DESCRIPTION OF THE FUND
Cash Account Trust (the Fund) is an open-end management investment company
organized as a business trust under the laws of Massachusetts currently offering
three series of shares (Portfolios). The Money Market Portfolio invests
primarily in short-term high quality obligations of major banks and
corporations. The Government Securities Portfolio invests exclusively in
obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities and repurchase agreements thereon. The Tax-Exempt Portfolio
invests in short-term high quality municipal securities.
2. SIGNIFICANT ACCOUNTING POLICIES
INVESTMENT VALUATION
Investments are stated at amortized cost, which approximates market value. In
the event that a deviation of 1/2 of 1% or more exists between a Portfolio's
$1.00 per share net asset value, calculated at amortized cost, and the net asset
value calculated by reference to market-based values, or if there is any other
deviation that the Board of Trustees believes would result in a material
dilution to shareholders or purchasers, the Board of Trustees will promptly
consider what action should be initiated.
INVESTMENT TRANSACTIONS AND INTEREST INCOME
Investment transactions are accounted for on the trade date (date the order to
buy or sell is executed). Interest income is recorded on the accrual basis and
includes amortization of premium and discount on investments.
EXPENSES
Expenses arising in connection with a Portfolio are allocated to that Portfolio.
Other Fund expenses are allocated among the Portfolios in proportion to their
relative net assets.
FUND SHARE VALUATION AND DIVIDENDS TO SHAREHOLDERS
Fund shares are sold and redeemed on a continuous basis at net asset value. On
each day that the New York Stock Exchange is open for trading, each Portfolio
determines its net asset value per share (NAV) by dividing the total value of
the Portfolio's investments and other assets, less liabilities, by the number of
Portfolio shares outstanding. The NAV is determined at 11:00 a.m., 1:00 p.m. and
3:00 p.m. Chicago time for the Money Market and Government Securities Portfolios
and at 11:00 a.m. and 3:00 p.m. Chicago time for the Tax-Exempt Portfolio. Each
Portfolio declares a daily dividend, equal to its net investment income for that
day, payable monthly. Net investment income consists of all interest income plus
(minus) all realized gains (losses) on portfolio securities, minus all expenses
of the Portfolio.
FEDERAL INCOME TAXES
Each Portfolio has complied with the special provisions of the Internal Revenue
Code available to investment companies for the six months ended October 31,
1995.
3. TRANSACTIONS WITH AFFILIATES
MANAGEMENT AGREEMENT
The Fund has a management agreement with Kemper Financial Services, Inc. (KFS)
and pays a management fee at an annual rate of .22% of the first $500 million of
average daily net assets declining gradually to .15% of average daily net assets
in excess of $3 billion. During the six months ended October 31, 1995, the Fund
incurred management fees of $703,000.
Kemper Asset Holdings, Inc. (KAHI), a subsidiary of Kemper Corporation, the
parent company of Kemper Financial Services, Inc., arranged for the issuance of
a $5,364,000 irrevocable letter of credit from The Bank of New York for the
benefit of the Fund. The letter of credit supports the payment of principal and
interest on the Orange County, California obligation held in the Money Market
Portfolio. The Fund and KAHI are parties to an agreement related to the letter
of credit which provides, among other things, that, in connection with a payment
of principal or interest under the letter of credit, the Fund will transfer to
KAHI any proceeds received under the Orange County obligation.
<PAGE> 12
Cash Account Trust 12
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
DISTRIBUTION AGREEMENT
The Fund also has an administration, shareholder services and distribution
agreement with Kemper Distributors, Inc. (KDI). For its services as primary
distributor, the Fund pays KDI an annual fee of .60% of average daily net assets
for the Money Market and Government Securities Portfolios and .50% of average
daily net assets for the Tax-Exempt Portfolio. For the six months ended October
31, 1995, the Fund incurred distribution fees of $1,882,000. KDI has related
service agreements with various firms to provide cash management and other
services for Fund shareholders. Under these agreements, KDI pays such firms
based on the average daily net assets of those accounts that they maintain and
service at an annual rate of .60% for the Money Market and Government Securities
Portfolios, and .50% for the Tax-Exempt Portfolio. During the six months ended
October 31, 1995, KDI paid fees of $1,881,000 to various firms pursuant to the
related service agreements.
SHAREHOLDER SERVICES AGREEMENT
Pursuant to a services agreement with the Fund's transfer agent, Kemper Service
Company (KSvC) is the shareholder service agent of the Fund. For the six months
ended October 31, 1995, IFTC remitted shareholder services fees to KSvC of
$402,000.
OFFICERS AND TRUSTEES
Certain officers or trustees of the Fund are also officers or directors of KFS.
During the six months ended October 31, 1995, the Fund made no payments to its
officers and incurred trustees' fees of $12,000 to independent trustees.
EXPENSE ABSORPTION
KFS has agreed to temporarily waive its management fee and reimburse or pay
operating expenses of a Portfolio to the extent that they exceed the following
percentages of average daily net assets: Money Market Portfolio (1.00%),
Government Securities Portfolio (.90%) and Tax-Exempt Portfolio (.80%). In
addition, from time to time, KFS may voluntarily waive fees or absorb certain
additional operating expenses of each Portfolio. Under these arrangements, KFS
absorbed expenses of $333,000 during the six months ended October 31, 1995.
<PAGE> 13
Cash Account Trust 13
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO Six months Year ended April 30,
ended 1995 1994 1993 1992
October 31,
1995
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $1.00 1.00 1.00 1.00 1.00
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income and dividends declared .03 .04 .02 .02 .04
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 1.00 1.00 1.00 1.00
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 2.55% 4.38 2.42 2.65 4.44
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Expenses after expense waiver 1.00% .99 .93 .84 .93
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income 5.00 4.54 2.48 2.59 4.03
- -----------------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Expenses 1.05% 1.05 1.20 1.36 1.57
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income 4.95 4.48 2.21 2.07 3.39
- -----------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $ 405,903 378,551 156,153 34,267 27,905
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE:
The Money Market Portfolio's total return for the six months ended October 31,
1995 and for the year ended April 30, 1995 includes the effect of a capital
contribution from the investment manager. Without the capital contribution, the
total returns would have been 2.40% and 4.16%, respectively.
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES PORTFOLIO Six months Year ended April 30,
ended 1995 1994 1993 1992
October 31,
1995
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $1.00 1.00 1.00 1.00 1.00
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income and dividends declared .03 .04 .02 .02 .04
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 1.00 1.00 1.00 1.00
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 2.58% 4.37 2.49 2.65 4.54
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Expenses after expense waiver .90% .90 .84 .79 .79
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income 5.06 4.66 2.47 2.63 4.41
- -----------------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Expenses 1.06% 1.05 1.22 1.18 1.20
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income 4.90 4.51 2.09 2.24 4.00
- -----------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $ 181,007 138,020 30,829 28,963 34,119
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 14
Cash Account Trust 14
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six months
ended
October 31, Year ended April 30,
TAX-EXEMPT PORTFOLIO 1995 1995 1994 1993 1992
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $1.00 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income and dividends declared .02 .03 .02 .02 .03
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 1.66% 2.80 1.84 2.13 3.46
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Expenses after expense waiver .78% .76 .74 .71 .67
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income 3.27 3.00 1.82 2.09 3.34
- ------------------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Expenses 1.07% .93 1.20 1.39 1.38
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income 2.98 2.83 1.36 1.41 2.63
- ------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $69,633 67,748 16,991 10,014 7,097
</TABLE>
- --------------------------------------------------------------------------------
NOTE FOR ALL PORTFOLIOS:
KFS has agreed to temporarily waive certain operating expenses. The Other Ratios
to Average Net Assets are computed without this expense waiver.
<PAGE> 15
CASH ACCOUNT
TRUST
SEMIANNUAL
REPORT
OCTOBER 31, 1995
This report is not to be distributed unless preceded or
accompanied by a prospectus.
INVESTMENT MANAGER
Kemper Financial Services, Inc.
PRINCIPAL UNDERWRITER
Kemper Distributors, Inc.
120 South LaSalle Street, Chicago, IL 60603
1006430 11/95 [LOGO]
Printed on recycled paper.
