<PAGE> 1
Cash Account Trust 1
- --------------------------------------------------------------------------------
DEAR SHAREHOLDERS:
- --------------------------------------------------------------------------------
We are pleased to provide you with the Cash Account Trust annual
report for the year ended April 30, 1996. Each of the Fund's
Portfolios, Money Market, Government Securities and Tax-Exempt,
registered solid performance during this period. Please take a moment to
review the Portfolio results.
ECONOMIC REVIEW AND OUTLOOK
Recent strengths in the U.S. economy and actions by the Federal Reserve Board
suggest that interest rates are not likely to decline. We feel that the
economy's growth path, while moderate, will continue above the trend for the
first half of 1996. Moreover, the trend for inflation in the near future appears
to remain subdued. In this context, we anticipate a period of rate stability
with a rising probability of higher rate levels as the year progresses.
Your Fund has continued to meet its investment objective by owning high quality,
short-term money market investments that can provide stability of principal,
especially during periods of market uncertainty, and competitive money market
yields.
We look forward to meeting the challenges which the economy and the financial
markets will present in the months ahead. As always, we are dedicated in our
attempt to provide our shareholders with excellent investment results.
Thank you for your investment in Cash Account Trust. We look forward to
continuing to serve your investment needs in the years to come.
Sincerely,
/s/ John W. Stuebe
John W. Stuebe
Vice President and Portfolio Manager
May 23, 1996
John Stuebe is Vice President of Zurich Kemper Investments, Inc. and Vice
President and Portfolio Manager of Cash Account Trust. Mr. Stuebe holds a B.S.
degree in Finance from the University of Illinois and a M.S. degree in Economics
from DePaul University.
PORTFOLIO RESULTS
For the year ended April 30, 1996, the Fund's three Portfolios had the following
net annualized yields:
The Money Market Portfolio had a net annualized yield of 4.83%.
The Government Securities Portfolio had a net annualized yield of 4.89%.
The Tax-Exempt Portfolio had a net annualized yield of 3.10% and a
tax-equivalent yield of 4.93%.
NOTES
An investment in the Fund is neither insured nor guaranteed by the U.S.
Government, and there can be no assurance that a Portfolio will be able to
maintain a stable net asset value of $1.00 per share.
Each Portfolio's net annualized yield for the year ended April 30, 1996 is the
annualized sum of the daily dividend rates for the period. The tax-equivalent
yield for the Tax-Exempt Portfolio is based on a marginal federal income 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. Yields are historical and do not represent future
yields, which will fluctuate.
The views expressed in this report reflect those of the portfolio manager only
through the end of the period of the report as stated above. The manager's views
are subject to change at any time, based on market and other conditions.
<PAGE> 2
Cash Account Trust 2
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MONEY MARKET PORTFOLIO
Investments at April 30, 1996
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CORPORATE OBLIGATIONS Value
<S> <C>
BANKING--5.3%
- --------------------------------------------------------
Postipankki U.S. Inc.
5.38%, 6/18/96 $ 7,943
- --------------------------------------------------------
Svenska Handelsbanken, Inc.
5.37%, 6/20/96 7,941
- --------------------------------------------------------
UBS Finance (Delaware) Inc.
5.35%, 5/1/96 8,000
- --------------------------------------------------------
23,884
CAPITAL AND MORTGAGE LENDING--3.5%
- --------------------------------------------------------
Countrywide Funding Corporation
5.38%, 6/7/96 7,956
- --------------------------------------------------------
SRD Finance Inc.
5.43%, 5/23/96 7,974
- --------------------------------------------------------
15,930
CAPTIVE BUSINESS FINANCE--19.1%
- --------------------------------------------------------
(a)American Honda Finance Corporation
5.44%, 5/6/96 4,998
- --------------------------------------------------------
CSW Credit, Inc.
5.34%, 6/12/96 9,938
- --------------------------------------------------------
(a)(b)Capital One Funding Corporation
5.38%, 5/7/96 9,339
- --------------------------------------------------------
Caterpillar Financial Services Corp.
5.30%, 5/21/96 9,971
- --------------------------------------------------------
Enterprise Funding Corp.
5.32%, 5/23/96 7,974
- --------------------------------------------------------
(a)Finova Capital Corporation
5.51%, 6/14/96 8,000
- --------------------------------------------------------
Ford Motor Credit Company
5.84%, 4/8/97 5,092
- --------------------------------------------------------
Mitsubishi Motors Credit of America, Inc.
5.30%, 5/6/96 7,994
- --------------------------------------------------------
Orix America Inc.
5.46%-5.83%, 5/24/96-6/3/96 15,667
- --------------------------------------------------------
(a)USL Capital Corporation
5.38%, 5/29/96 8,005
- --------------------------------------------------------
86,978
CONSUMER FINANCING--5.2%
- --------------------------------------------------------
Associates Corporation of North America
5.37%, 6/17/96 7,944
- --------------------------------------------------------
General Electric Capital Corp.
5.35%, 6/19/96 7,942
- --------------------------------------------------------
Xerox Credit Corporation
5.35%, 6/17/96 7,945
- --------------------------------------------------------
23,831
<CAPTION>
Value
<S> <C>
CONSUMER PRODUCTS AND SERVICES--1.7%
- --------------------------------------------------------
A.H. Robins Company, Incorporated
5.37%, 6/17/96 $ 7,944
- --------------------------------------------------------
CORPORATE FINANCING--5.7%
- --------------------------------------------------------
(a)AT&T Capital Corp.
5.46%, 5/23/96 7,998
- --------------------------------------------------------
Broadway Capital Corp.
5.40%, 5/17/96 9,976
- --------------------------------------------------------
Stellar Capital Corp.
5.48%, 5/13/96 7,986
- --------------------------------------------------------
25,960
FINANCIAL INSTITUTIONS--8.0%
- --------------------------------------------------------
(a)Bear Stearns Companies Inc.
5.49% - 5.51%, 5/8/96 - 5/20/96 8,000
- --------------------------------------------------------
(a)CS First Boston, Inc.
5.52%, 5/8/96 8,500
- --------------------------------------------------------
(a)Federal National Mortgage Association
5.29%, 5/7/96 4,945
- --------------------------------------------------------
(a)Goldman, Sachs & Co.
5.41%, 5/28/96 8,000
- --------------------------------------------------------
(a)(b)Lehman Brothers Holdings Inc.
5.52%, 5/15/96 7,000
- --------------------------------------------------------
36,445
INDUSTRIAL PRODUCTS--1.8%
- --------------------------------------------------------
DIC Americas, Inc.
5.45%, 5/30/96 7,965
- --------------------------------------------------------
INFORMATION SERVICES--9.2%
- --------------------------------------------------------
GTE Corporation
5.53%, 5/6/96 7,994
- --------------------------------------------------------
International Business Machines Corp.
5.26%, 2/28/97 7,984
- --------------------------------------------------------
Lucent Technologies, Inc.
5.38%, 6/11/96 7,952
- --------------------------------------------------------
MCI Communications Corporation
5.34%, 6/14/96 9,936
- --------------------------------------------------------
Nynex Corporation
5.43%, 6/21/96 7,939
- --------------------------------------------------------
41,805
MUNICIPAL AND STATE OBLIGATIONS--1.6%
- --------------------------------------------------------
(a)(b)(c)Orange County, California
6.26%, 6/30/96
$5,000,000 (cost and par) 4,938
(b)Letter of credit from The Bank of New York 62
- --------------------------------------------------------
</TABLE>
<PAGE> 3
Cash Account Trust 3
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
Investments at April 30, 1996
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
(a)Texas, General Obligation
5.40%, 5/7/96 $ 2,400
- --------------------------------------------------------
7,400
RECEIVABLES FINANCING--21.9%
- --------------------------------------------------------
Astro Capital Corp.
5.32%, 5/31/96 7,965
- --------------------------------------------------------
CXC Incorporated
5.35%, 5/21/96 9,971
- --------------------------------------------------------
Clipper Receivables Corp.
5.31%, 5/2/96 9,999
- --------------------------------------------------------
Corporate Receivables Corp.
5.38%, 6/13/96 9,936
- --------------------------------------------------------
Falcon Asset Securitization Corporation
5.32%, 5/20/96 9,972
- --------------------------------------------------------
First Brands Commercial, Inc.
5.34%, 5/9/96 9,988
- --------------------------------------------------------
(a)Heller Financial, Inc.
5.66%, 5/24/96 8,009
- --------------------------------------------------------
Heller International Corporation
5.56%, 6/14/96 7,946
- --------------------------------------------------------
Jet Funding Corporation
5.47%, 5/31/96 7,964
- --------------------------------------------------------
Receivables Capital Corp.
5.35%, 6/3/96 9,951
- --------------------------------------------------------
STRAIT Capital Corporation
5.46%, 7/19/96 7,905
- --------------------------------------------------------
99,606
UTILITIES--2.1%
- --------------------------------------------------------
New Hampshire Industrial Development Authority
5.40%, 6/14/96 9,500
- --------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS--85.1%
(average maturity: 38 days) 387,248
- --------------------------------------------------------
<CAPTION>
Value
<S> <C>
BANK OBLIGATIONS
CERTIFICATES OF DEPOSITS
(a)Boatman's Credit Card Bank
5.30%, 6/3/96 $ 5,000
- --------------------------------------------------------
Societe Generale
5.35%, 6/17/96 10,000
- --------------------------------------------------------
TOTAL BANK OBLIGATIONS--3.3%
(average maturity: 42 days) 15,000
- --------------------------------------------------------
(d)REPURCHASE AGREEMENTS
(Dated 2/96 and 4/96, collateralized by Federal
Home Loan Mortgage Corporation, Federal
National Mortgage Association and Government
National Mortgage Association securities)
- --------------------------------------------------------
Goldman, Sachs & Co.
(held at The Bank of New York)
5.40%, 5/1/96 8,000
- --------------------------------------------------------
Lehman Government Securities Inc.
(held at Chemical Bank)
5.17% - 5.26%, 5/2/96 - 5/3/96 35,000
- --------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS--9.4%
(average maturity: 1 day) 43,000
- --------------------------------------------------------
U.S. TREASURY NOTE--1.8%
(average maturity: 275 days)
5.04%, 1/31/97 8,141
- --------------------------------------------------------
TOTAL INVESTMENTS--99.6%
(average maturity: 39 days) 453,389
- --------------------------------------------------------
CASH AND OTHER ASSETS,
LESS LIABILITIES--.4% 1,636
- --------------------------------------------------------
NET ASSETS--100% $455,025
- -------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 4
Cash Account Trust 4
- --------------------------------------------------------------------------------
GOVERNMENT SECURITIES PORTFOLIO
Investments at April 30, 1996
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. TREASURY NOTES--10.1% Value
<S> <C>
5.09% - 5.75%, 5/15/96 - 1/31/97
(average maturity: 186 days) $ 19,199
- ---------------------------------------------------------
SHORT-TERM NOTES
(Issued or guaranteed by U.S. Government
agencies or instrumentalities)
- ---------------------------------------------------------
(a)Export-Import Bank of the United States
Kuwait Investment Authority
5.56%, 5/15/96 2,800
- ---------------------------------------------------------
Federal Farm Credit Banks
5.81%, 8/1/96 3,199
- ---------------------------------------------------------
Federal Home Loan Bank
(a) 5.33%, 5/2/96 2,201
5.85%, 5/15/96 7,800
- ---------------------------------------------------------
Federal National Mortgage Association
(a) 5.29% - 5.85%, 5/1/96 - 5/7/96 12,868
5.77%, 6/21/96 2,999
- ---------------------------------------------------------
(a)Overseas Private Investment Corporation
Omolon
5.43%, 5/7/96 6,000
- ---------------------------------------------------------
(a)Student Loan Marketing Association
5.33%, 5/7/96 24,381
- ---------------------------------------------------------
TOTAL SHORT-TERM NOTES--32.8%
(average maturity: 14 days) 62,248
- ---------------------------------------------------------
(d)REPURCHASE AGREEMENTS
(Dated 2/96 to 4/96, collateralized by Federal
Home Loan Mortgage Corporation, Federal
National Mortgage Association and Government
National Mortgage Association securities)
- ---------------------------------------------------------
Bear, Stearns & Co. Inc.
5.30%, 5/1/96 - 5/6/96 5,600
- ---------------------------------------------------------
Chase Securities, Inc.
(held at Chemical Bank)
5.24% - 5.37%, 5/6/96 - 7/8/96 27,000
- ---------------------------------------------------------
<CAPTION>
Value
<S> <C>
Donaldson, Lufkin & Jenrette Securities
Corporation 5.35%, 7/1/96 $ 5,000
- ---------------------------------------------------------
Lehman Government Securities Inc.
(held at Chemical Bank)
5.18%, 6/5/96 5,000
- ---------------------------------------------------------
Merrill Lynch Government Securities, Inc.
(held at Chemical Bank)
5.19%, 5/1/96 3,800
- ---------------------------------------------------------
Morgan Stanley & Co. Incorporated
(held at The Bank of New York)
5.31%, 5/13/96 12,000
- ---------------------------------------------------------
Nomura Securities International, Inc.
(held at The Bank of New York)
5.35%, 6/3/96 25,300
- ---------------------------------------------------------
Salomon Brothers Inc.
(held at The Bank of New York)
5.32% - 5.35%, 5/13/96 - 7/2/96 23,000
- ---------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS--56.2%
(average maturity: 20 days) 106,700
- ---------------------------------------------------------
TOTAL INVESTMENTS--99.1%
(average maturity: 35 days) 188,147
- ---------------------------------------------------------
CASH AND OTHER ASSETS,
LESS LIABILITIES--.9% 1,772
- ---------------------------------------------------------
NET ASSETS--100% $189,919
- ---------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 5
Cash Account Trust 5
- --------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO
Investments at April 30, 1996
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(a)VARIABLE RATE
DEMAND SECURITIES Value
<S> <C>
CALIFORNIA
- ---------------------------------------------------------
Lancaster
Redevelopment Agency
4.15% $ 1,000
- ---------------------------------------------------------
Los Angeles
Harbor Improvement Corporation
4.20% 2,000
ILLINOIS
- ---------------------------------------------------------
Development Finance Authority
Catholic Charities Housing
4.10% 1,000
Industrial Development Revenue
4.60% 2,000
- ---------------------------------------------------------
Student Assistance Commission
4.30% 1,000
INDIANA
- ---------------------------------------------------------
Fort Wayne
Hospital Authority
4.15% 2,135
LOUISIANA
- ---------------------------------------------------------
Jefferson Parish
Hospital Revenue
4.10% 2,180
PENNSYLVANIA
- ---------------------------------------------------------
Delaware Valley
Regional Finance Authority
4.25% 1,700
- ---------------------------------------------------------
Philadelphia
Redevelopment Authority
4.20% 1,600
TENNESSEE
- ---------------------------------------------------------
Maury County
Industrial Development Board
4.50% 2,000
- ---------------------------------------------------------
Smyrna Housing Association
Multi-family Housing Revenue
4.70% 2,000
TEXAS
- ---------------------------------------------------------
Calhoun County
Industrial Development Authority
4.30% 1,000
UTAH
- ---------------------------------------------------------
Springville
Industrial Development Revenue
4.10% 1,150
- ---------------------------------------------------------
<CAPTION>
Value
<S> <C>
VIRGINIA
- ---------------------------------------------------------
Louisa County
Industrial Development Authority
4.20% $ 2,000
WISCONSIN
- ---------------------------------------------------------
Eau Claire
Solid Waste Disposal Revenue
4.25% 1,800
- ---------------------------------------------------------
TOTAL VARIABLE RATE
DEMAND SECURITIES--36.7%
(average maturity: 6 days) 24,565
- ---------------------------------------------------------
OTHER SECURITIES
ALASKA
- ---------------------------------------------------------
Valdez
Marine Terminal Revenue
3.30%, 5/14/96 2,500
ARIZONA
- ---------------------------------------------------------
Salt River Project
Agricultural Improvement and Power District
3.40%, 8/13/96 3,000
COLORADO
- ---------------------------------------------------------
Denver City and County
Airport System Revenue
3.75%, 5/13/96 - 8/13/96 2,500
- ---------------------------------------------------------
Platte River Power Authority
3.25%, 5/9/96 2,100
GEORGIA
- ---------------------------------------------------------
Municipal Electric Authority
3.25%, 5/13/96 2,000
ILLINOIS
- ---------------------------------------------------------
Chicago
General Obligation
3.60%, 9/10/96 2,500
- ---------------------------------------------------------
Development Finance Authority
3.50%, 5/14/96 1,500
- ---------------------------------------------------------
Educational Facilities Authority
3.30%, 8/12/96 1,000
- ---------------------------------------------------------
</TABLE>
<PAGE> 6
Cash Account Trust 6
- --------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO
Investments at April 30, 1996
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
INDIANA
- ---------------------------------------------------------
Bond Bank Advance Funding Program Notes
3.50%, 1/9/97 $ 1,005
- ---------------------------------------------------------
Jasper County
Pollution Control Revenue
3.25%, 5/9/96 - 5/13/96 2,400
KENTUCKY
- ---------------------------------------------------------
Danville
Multi-City Lease Revenue
3.35%, 5/10/96 1,590
- ---------------------------------------------------------
Pendleton County
Multi-County Lease Revenue
3.25%, 5/9/96 1,000
MARYLAND
- ---------------------------------------------------------
Anne-Arundel County
Economic Revenue
3.60%, 8/19/96 3,000
MINNESOTA
- ---------------------------------------------------------
University of Minnesota
3.30%, 7/23/96 1,910
NEW YORK
- ---------------------------------------------------------
Nassau County
Revenue Anticipation Notes
3.40%, 3/5/97 1,003
- ---------------------------------------------------------
New York City
Revenue Anticipation Notes
3.45%, 6/28/96 601
NORTH CAROLINA
- ---------------------------------------------------------
Municipal Power Agency
3.50%, 8/12/96 3,000
PENNSYLVANIA
- ---------------------------------------------------------
Philadelphia
Gas Works Revenue
3.40%, 6/6/96 2,000
School District
Tax and Revenue Anticipation Notes
3.95%, 6/28/96 1,001
- ---------------------------------------------------------
<CAPTION>
Value
<S> <C>
TEXAS
- ---------------------------------------------------------
Brazoria County
Brazos River Harbor Navigation District
3.45%, 5/14/96 $ 2,000
- ---------------------------------------------------------
Municipal Power Agency
3.50%, 5/14/96 1,000
- ---------------------------------------------------------
San Antonio
Electric and Gas Systems
3.30%, 5/9/96 2,300
- ---------------------------------------------------------
Tax and Revenue Anticipation Notes
3.94%, 8/30/96 501
UTAH
- ---------------------------------------------------------
Intermountain Power Agency
3.50%, 8/14/96 1,000
VIRGINIA
- ---------------------------------------------------------
Chesterfield
Industrial Development Authority
3.60%, 7/19/96 2,000
- ---------------------------------------------------------
TOTAL OTHER SECURITIES--66.3%
(average maturity: 66 days) 44,411
- ---------------------------------------------------------
TOTAL INVESTMENTS--103.0%
(average maturity: 44 days) 68,976
- ---------------------------------------------------------
LIABILITIES, LESS
OTHER ASSETS--(3.0)% (1,995)
- ---------------------------------------------------------
NET ASSETS -- 100% $66,981
- ---------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 7
Cash Account Trust 7
- --------------------------------------------------------------------------------
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 April 30,
1996. 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 April 30, 1996, the aggregate value of illiquid
securities was $21,339,000 in the Money Market Portfolio, which represented 4.7%
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> 8
Cash Account Trust 8
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
THE BOARD OF TRUSTEES AND SHAREHOLDERS
CASH ACCOUNT TRUST
We have audited the accompanying statement of assets and liabilities, including
the portfolios of investments, of the Money Market, Government Securities and
Tax-Exempt Portfolios, comprising Cash Account Trust, as of April 30, 1996, and
the related statements of operations for the year then ended and changes in net
assets for each of the two years in the period then ended, and the financial
highlights for each of the fiscal periods since 1992. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
April 30, 1996, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the Portfolios comprising Cash Account Trust at April 30, 1996, the results
of their operations for the year then ended, the changes in their net assets for
each of the two years in the period then ended and the financial highlights for
each of the fiscal periods since 1992, in conformity with generally accepted
accounting principles.
ERNST & YOUNG LLP
Chicago, Illinois
June 18, 1996
<PAGE> 9
Cash Account Trust 9
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1996
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY GOVERNMENT
MARKET SECURITIES TAX-EXEMPT
ASSETS PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Investments, at amortized cost:
Short-term securities $ 410,389 81,447 68,976
- -----------------------------------------------------------------------------------------------------------------------------
Repurchase agreements 43,000 106,700 --
- -----------------------------------------------------------------------------------------------------------------------------
Cash 1,981 635 --
- -----------------------------------------------------------------------------------------------------------------------------
Receivable for:
Interest 1,083 1,755 398
- -----------------------------------------------------------------------------------------------------------------------------
Fund shares sold 10 -- --
- -----------------------------------------------------------------------------------------------------------------------------
Total assets 456,463 190,537 69,374
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
Cash overdraft -- -- 1,390
- -----------------------------------------------------------------------------------------------------------------------------
Payable for:
Dividends 440 188 46
- -----------------------------------------------------------------------------------------------------------------------------
Fund shares redeemed 542 228 883
- -----------------------------------------------------------------------------------------------------------------------------
Management fee 62 9 --
- -----------------------------------------------------------------------------------------------------------------------------
Distribution services fee 228 96 27
- -----------------------------------------------------------------------------------------------------------------------------
Custodian and transfer agent
fees and related expenses 122 64 24
- -----------------------------------------------------------------------------------------------------------------------------
Other 44 33 23
- -----------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,438 618 2,393
- -----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 455,025 189,919 66,981
- -----------------------------------------------------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
Paid-in capital $ 456,441 189,919 66,981
- -----------------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on investments (1,416) -- --
- -----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 455,025 189,919 66,981
- -----------------------------------------------------------------------------------------------------------------------------
THE PRICING OF SHARES
- -----------------------------------------------------------------------------------------------------------------------------
Shares outstanding 455,025 189,919 66,981
- -----------------------------------------------------------------------------------------------------------------------------
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
Year ended April 30, 1996
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY GOVERNMENT
MARKET SECURITIES TAX-EXEMPT
PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------------------------------------------------
<S> <C> <C> <C>
INTEREST INCOME $ 24,184 10,392 2,764
- -------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fee 891 386 153
- -------------------------------------------------------------------------------------------------------------------------------
Distribution services fee 2,486 1,078 356
- -------------------------------------------------------------------------------------------------------------------------------
Custodian and transfer agent fees and related expenses 727 256 62
- -------------------------------------------------------------------------------------------------------------------------------
Registration costs 173 140 107
- -------------------------------------------------------------------------------------------------------------------------------
Professional fees 28 12 5
- -------------------------------------------------------------------------------------------------------------------------------
Reports to shareholders 35 15 6
- -------------------------------------------------------------------------------------------------------------------------------
Trustees' fees and other 27 20 6
- -------------------------------------------------------------------------------------------------------------------------------
4,367 1,907 695
- -------------------------------------------------------------------------------------------------------------------------------
Less expenses waived by the investment manager (214) (288) (139)
- -------------------------------------------------------------------------------------------------------------------------------
Total expenses absorbed by the Portfolio 4,153 1,619 556
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income 20,031 8,773 2,208
- -------------------------------------------------------------------------------------------------------------------------------
Change in unrealized depreciation on investments (590) -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 19,441 8,773 2,208
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
Years ended April 30, 1996 and 1995
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT
MONEY MARKET SECURITIES TAX-EXEMPT
PORTFOLIO PORTFOLIO PORTFOLIO
------------------------------------------------------------------------
1996 1995 1996 1995 1996 1995
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS, DIVIDENDS AND CAPITAL SHARE ACTIVITY
Net investment income $ 20,031 12,814 8,773 3,981 2,208 1,459
- ------------------------------------------------------------------------------------------------------------------------------
Change in unrealized depreciation (590) (826) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Capital contribution from investment manager 590 826 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (20,031) (12,814) (8,773) (3,981) (2,208) (1,459)
- ------------------------------------------------------------------------------------------------------------------------------
Capital share transactions (dollar amounts and
number of shares are the same):
Shares sold 1,341,848 998,198 684,586 406,191 256,475 214,193
- ------------------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of dividends 20,087 12,434 8,850 3,814 2,221 1,404
- ------------------------------------------------------------------------------------------------------------------------------
1,361,935 1,010,632 693,436 410,005 258,696 215,597
Less shares redeemed 1,285,461 788,234 641,537 302,814 259,463 164,840
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from capital share
transactions and total increase (decrease) in net
assets 76,474 222,398 51,899 107,191 (767) 50,757
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of year 378,551 156,153 138,020 30,829 67,748 16,991
- ------------------------------------------------------------------------------------------------------------------------------
End of year $ 455,025 378,551 189,919 138,020 66,981 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 is an open-end management investment company organized as a
business trust under the laws of Massachusetts. The Fund is 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 and therefore no federal income tax
provision is required.
3. TRANSACTIONS WITH AFFILIATES
MANAGEMENT AGREEMENT
The Fund has a management agreement with Zurich Kemper Investments, Inc. (ZKI)
(formerly known as Kemper Financial Services, Inc.) and pays a management fee at
an annual rate of .22% of the first $500 million of average daily net assets
declining to .15% of average daily net assets in excess of $3 billion. During
the year ended April 30, 1996, the Fund incurred management fees of $1,430,000.
Kemper Asset Holdings, Inc. (KAHI), a subsidiary of Kemper Corporation, the
former parent company of ZKI, 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
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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 year ended April 30,
1996, the Fund incurred distribution fees of $3,920,000. 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 year ended April 30, 1996, KDI
paid fees of $3,920,000 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. Under the
agreement, KSvC received shareholder services fees of $881,000 for the year
ended April 30, 1996.
OFFICERS AND TRUSTEES
Certain officers or trustees of the Fund are also officers or directors of ZKI.
During the year ended April 30, 1996, the Fund made no payments to its officers
and incurred trustees' fees of $28,000 to independent trustees.
EXPENSE ABSORPTION
ZKI 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, ZKI may voluntarily waive fees or absorb certain
additional operating expenses of each Portfolio. Under these arrangements, ZKI
absorbed expenses of $641,000 during the year ended April 30, 1996.
<PAGE> 13
Cash Account Trust 13
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FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year ended April 30,
MONEY MARKET PORTFOLIO 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year $1.00 1.00 1.00 1.00 1.00
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income and dividends declared .05 .04 .02 .02 .04
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $1.00 1.00 1.00 1.00 1.00
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 4.96% 4.38 2.42 2.65 4.44
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Expenses after expense waiver 1.00% .99 .93 .84 .93
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income 4.83% 4.54 2.48 2.59 4.03
- ----------------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS
Expenses 1.05% 1.05 1.20 1.36 1.57
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income 4.78% 4.48 2.21 2.07 3.39
- ----------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of year (in thousands) $455,025 378,551 156,153 34,267 27,905
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE:
The Money Market Portfolio's total returns for the years ended April 30, 1996
and 1995 include the effect of a capital contribution from the investment
manager. Without the capital contribution, the total returns would have been
4.80% and 4.16%, respectively.
<TABLE>
<CAPTION>
Year ended April 30,
GOVERNMENT SECURITIES PORTFOLIO 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year $1.00 1.00 1.00 1.00 1.00
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income and dividends declared .05 .04 .02 .02 .04
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $1.00 1.00 1.00 1.00 1.00
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 5.01% 4.37 2.49 2.65 4.54
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Expenses after expense waiver .90% .90 .84 .79 .79
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income 4.88% 4.66 2.47 2.63 4.41
- ----------------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS
Expenses 1.06% 1.05 1.22 1.18 1.20
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income 4.72% 4.51 2.09 2.24 4.00
- ----------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of year (in thousands) $189,919 138,020 30,829 28,963 34,119
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 14
Cash Account Trust 14
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year ended April 30,
TAX-EXEMPT PORTFOLIO 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year $1.00 1.00 1.00 1.00 1.00
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income and dividends declared .03 .03 .02 .02 .03
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $1.00 1.00 1.00 1.00 1.00
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 3.16% 2.80 1.84 2.13 3.46
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
Expenses after expense waiver .78% .76 .74 .71 .67
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income 3.10% 3.00 1.82 2.09 3.34
- -----------------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS
Expenses .98% .93 1.20 1.39 1.38
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income 2.90% 2.83 1.36 1.41 2.63
- -----------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of year (in thousands) $66,981 67,748 16,991 10,014 7,097
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE FOR ALL PORTFOLIOS:
ZKI has agreed to temporarily waive certain operating expenses. The Other Ratios
to Average Net Assets are computed without this expense waiver.
- --------------------------------------------------------------------------------
FEDERAL TAX STATUS OF 1996 DIVIDENDS
All of the dividends from the Money Market and Government Securities Portfolios
are taxable as ordinary income. All of the dividends from the Tax-Exempt
Portfolio constitute tax-exempt interest which is not taxable for federal income
tax purposes; however, a portion of the dividends may be includable in the
alternative minimum tax calculation.
These dividends, whether received in cash or reinvested in shares, must be
included in your federal income tax return and must be reported by the Fund to
the Internal Revenue Service in accordance with U.S. Treasury Department
Regulations.
<PAGE> 15
Cash Account Trust 15
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Notes
- --------------------------------------------------------------------------------
<PAGE> 16
CASH ACCOUNT
TRUST
ANNUAL
REPORT
APRIL 30, 1996
This report is not to be distributed unless preceded or
accompanied by a prospectus.
INVESTMENT MANAGER
Zurich Kemper Investments, Inc.
PRINCIPAL UNDERWRITER
Kemper Distributors, Inc.
120 South LaSalle Street, Chicago, IL 60603
1016680 6/96 (RECYCLE LOGO)
Printed on recycled paper.
