<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, 1996.
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 and
achieved its objective of providing maximum current income.
ECONOMIC REVIEW AND OUTLOOK
Currently, economic statistics suggest a modestly slower pace of economic
growth. Market participants have viewed this positively because inflationary
pressures have not accelerated.
Nevertheless, our outlook suggests that the economy should continue to register
sufficient growth, which should make the Federal Reserve increasingly concerned
about the prospects for inflation and eventually lead to higher levels of
interest rates.
Money market funds such as Cash Account Trust should offer the opportunity for
attractive yields and continue to be an excellent place to invest your money.
Your Fund's management thanks you for the vote of confidence 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
Vice President and Portfolio Manager
November 13, 1996
John Stuebe is First Vice President of Zurich Kemper Investments, 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, 1996, the Fund's three Portfolios had the
following net annualized yields:
The Money Market Portfolio had a net annualized yield of 4.46%.
The Government Securities Portfolio had a net annualized yield of 4.58%.
The Tax-Exempt Portfolio had a net annualized yield of 2.81% and a
tax-equivalent yield of 4.47%.
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 six months ended October 31, 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 October 31, 1996
(Value in thousands)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
CORPORATE OBLIGATIONS Value
<S> <C>
BANKING--4.6%
---------------------------------------------------------
Credit Lyonnais N.A. Inc.
5.49%, 1/22/97 $ 12,840
---------------------------------------------------------
Sumitomo Bank Capital Markets, Inc.
5.44%, 11/22/96 7,975
---------------------------------------------------------
20,815
BUSINESS LOANS--17.1%
---------------------------------------------------------
Astro Capital Corp.
5.49%, 1/31/97 14,795
---------------------------------------------------------
First Brands Commercial Inc.
5.32%, 12/10/96 9,943
---------------------------------------------------------
(a) Heller Financial, Inc.
5.66%, 11/1/96 8,002
---------------------------------------------------------
Madison Funding Corp.
5.45%, 11/25/96 9,964
---------------------------------------------------------
Oakland-Alameda County Coliseum, California
5.34%, 12/16/96 10,000
---------------------------------------------------------
Sigma Finance, Inc.
5.50%, 12/9/96 6,960
---------------------------------------------------------
Strategic Asset Funding Corp.
5.48%, 1/31/97 7,891
---------------------------------------------------------
WCP Funding Inc.
5.43%, 11/18/96 9,975
---------------------------------------------------------
77,530
CAPITAL AND EQUIPMENT LENDING--11.2%
---------------------------------------------------------
(a) American Honda Finance Corporation
5.43%, 11/4/96 4,999
---------------------------------------------------------
(a) Caterpillar Financial Services Corp.
5.36%, 11/29/96 15,000
---------------------------------------------------------
(a) Chrysler Financial Corporation
5.58%, 11/20/96 5,001
---------------------------------------------------------
Ford Motor Credit Company
5.84%, 4/8/97 5,042
---------------------------------------------------------
IBM Credit Corp.
5.26%, 2/28/97 7,993
---------------------------------------------------------
Mitsubishi Motors Credit of America, Inc.
5.49%, 1/13/97 9,890
---------------------------------------------------------
SRD Finance Inc.
5.76%, 1/9/97 2,967
---------------------------------------------------------
50,892
<CAPTION>
Value
<S> <C>
CAPTIVE BUSINESS LENDING--8.2%
---------------------------------------------------------
(a)(b) Capital One Funding Corp.
5.42%, 11/7/96 $ 9,107
---------------------------------------------------------
Enterprise Funding Corp.
5.31%, 12/3/96 9,953
---------------------------------------------------------
(a) FINOVA Capital Corporation
5.46%, 11/15/96 8,000
---------------------------------------------------------
Sony Capital Corporation
5.29%, 12/11/96 9,942
---------------------------------------------------------
37,002
CONSUMER LENDING--4.0%
---------------------------------------------------------
(a) Federal National Mortgage Association
5.36%, 11/5/96 4,954
---------------------------------------------------------
(a) Household International, Inc.
5.68%, 11/27/96 5,005
---------------------------------------------------------
Sears Roebuck Acceptance Corp.
5.47%, 11/12/96 7,987
---------------------------------------------------------
17,946
CONSUMER PRODUCTS AND SERVICES--2.2%
---------------------------------------------------------
Coca-Cola Enterprises Inc.
5.55%, 12/4/96 9,950
---------------------------------------------------------
DIVERSIFIED FINANCE--9.3%
---------------------------------------------------------
APEX Funding Corp.
5.49%, 1/31/97 7,891
---------------------------------------------------------
(a) CIT Group Holdings, Inc.
5.37%, 11/1/96 14,691
---------------------------------------------------------
Dynamic Funding Corporation
5.41%, 11/20/96 9,972
---------------------------------------------------------
STRAIT Capital Corporation
5.48%, 1/31/97 9,863
---------------------------------------------------------
42,417
FINANCIAL SERVICES--7.5%
---------------------------------------------------------
(a) Bear Stearns Companies Inc.
5.41% - 5.47%, 11/6/96 - 11/19/96 8,000
---------------------------------------------------------
(a) CS First Boston, Inc.
5.43%, 11/13/96 3,500
---------------------------------------------------------
(a) Goldman Sachs Group, L.P.
5.43%, 11/25/96 8,000
---------------------------------------------------------
(a)(b) Lehman Brothers Holdings Inc.
5.48%, 11/20/96 7,000
---------------------------------------------------------
Salomon Inc.
6.42%, 4/21/97 7,767
---------------------------------------------------------
34,267
</TABLE>
<PAGE> 3
Cash Account Trust 3
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MONEY MARKET PORTFOLIO
Investments at October 31, 1996
(Value in thousands)
----------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
STATE OBLIGATION--.5%
---------------------------------------------------------
(a) Texas, General Obligation
5.39%, 11/7/96 $ 2,255
---------------------------------------------------------
UTILITIES--7.9%
---------------------------------------------------------
Brazos River Authority, Texas
5.36%, 12/10/96 8,000
---------------------------------------------------------
Frontier Corporation
5.32%, 11/14/96 9,981
---------------------------------------------------------
Gulf Coast Waste Authority, Texas
5.32%, 11/19/96 10,000
---------------------------------------------------------
New Hampshire
Industrial Development Authority
5.36%, 12/10/96 8,000
---------------------------------------------------------
35,981
---------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS--72.5%
(average maturity: 43 days) 329,055
---------------------------------------------------------
BANK OBLIGATIONS
CERTIFICATES OF DEPOSIT--11.2%
(a) Bankers Trust Company
5.40%, 11/1/96 12,992
---------------------------------------------------------
(a) Key Bank, N.A.
5.39%, 11/13/96 9,996
---------------------------------------------------------
MBNA America Bank N.A.
5.47%, 1/16/97 10,000
---------------------------------------------------------
(a) Old Kent Bank
5.45%, 11/1/96 18,000
---------------------------------------------------------
50,988
Value
(b) TIME DEPOSIT--2.2%
Bank of Nova Scotia
5.34%, 12/12/96 $ 10,000
---------------------------------------------------------
TOTAL BANK OBLIGATIONS--13.4%
(average maturity: 21 days) 60,988
---------------------------------------------------------
(c) REPURCHASE AGREEMENTS
(Dated 9/96 and 10/96, collateralized by Federal
Home Loan Mortgage Corporation and Federal
National Mortgage Association securities)
---------------------------------------------------------
CS First Boston, Inc.
(held at The Chase Manhattan Bank, N.A.)
5.30%, 12/23/96 15,000
---------------------------------------------------------
Chase Securities, Inc.
(held at The Chase Manhattan Bank, N.A.)
5.32%, 12/4/96 - 12/11/96 30,000
---------------------------------------------------------
Nomura Securities International, Inc.
(held at The Bank of New York)
5.41%, 11/5/96 - 11/8/96 20,000
---------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS--14.4%
(average maturity: 31 days) 65,000
---------------------------------------------------------
U.S. TREASURY NOTES--.9%
(average maturity: 91 days)
5.04%, 1/31/97 4,023
---------------------------------------------------------
TOTAL INVESTMENTS--101.2%
(average maturity: 38 days) 459,066
---------------------------------------------------------
LIABILITIES, LESS OTHER ASSETS--(1.2)% (5,284)
---------------------------------------------------------
NET ASSETS--100% $453,782
---------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 4
Cash Account Trust 4
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GOVERNMENT SECURITIES PORTFOLIO
Investments at October 31, 1996
(Value in thousands)
----------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. TREASURY NOTES--3.6% Value
<S> <C>
(average maturity: 91 days)
5.09%, 1/31/97 $ 8,046
---------------------------------------------------------
SHORT-TERM NOTES
(Issued or guaranteed by U.S. Government
agencies or instrumentalities)
---------------------------------------------------------
(a) Export-Import Bank of the United States
Kuwait Investment Authority
5.57%, 11/15/96 7,797
---------------------------------------------------------
Federal Home Loan Bank
(a) 5.63%, 11/2/96 7,200
6.05%, 9/18/97 2,999
---------------------------------------------------------
Federal Home Loan Bank
Downey Savings & Loan
5.58%, 11/14/96 2,096
---------------------------------------------------------
Federal Home Loan Mortgage Corporation
(a) 5.76%, 11/25/96 3,997
6.16%, 9/1/97 3,317
---------------------------------------------------------
Federal National Mortgage Association
(a) 5.36%, 11/5/96 21,825
6.10%, 9/3/97 996
---------------------------------------------------------
(a) Overseas Private Investment Corporation
Omolon
5.48%, 11/5/96 7,500
---------------------------------------------------------
(a) Student Loan Marketing Association
5.37% - 5.62%, 11/5/96 - 6/30/97 59,402
---------------------------------------------------------
TOTAL SHORT-TERM NOTES--53.2%
(average maturity: 35 days) 117,129
---------------------------------------------------------
<CAPTION>
Value
<S> <C>
(c) REPURCHASE AGREEMENTS
(Dated 9/96 and 10/96, collateralized by Federal
Home Loan Mortgage Corporation, Federal National
Mortgage Association and Government National
Mortgage Association securities)
---------------------------------------------------------
Bear, Stearns & Co. Inc.
5.33%, 11/6/96 - 11/20/96 $ 30,000
---------------------------------------------------------
Chase Securities, Inc.
(held at The Chase Manhattan Bank, N.A.)
5.29%, 11/13/96 25,000
---------------------------------------------------------
Goldman, Sachs & Co.
(held at The Bank of New York)
5.27%, 11/4/96 8,000
---------------------------------------------------------
Lehman Government Securities Inc.
(held at The Chase Manhattan Bank, N.A.)
5.28%, 11/4/96 18,000
---------------------------------------------------------
Nomura Securities International, Inc.
(held at The Bank of New York)
5.41%, 11/6/96 12,000
---------------------------------------------------------
Salomon Brothers Inc.
(held at The Bank of New York)
5.41%, 11/4/96 1,000
---------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS--42.7%
(average maturity: 8 days) 94,000
---------------------------------------------------------
TOTAL INVESTMENTS--99.5%
(average maturity: 25 days) 219,175
---------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES--.5% 998
---------------------------------------------------------
NET ASSETS--100% $220,173
---------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 5
Cash Account Trust 5
----------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO
Investments at October 31, 1996
(Value in thousands)
----------------------------------------------------------------------------
<TABLE>
<CAPTION>
(a) VARIABLE RATE DEMAND SECURITIES Value
<S> <C>
ARIZONA
----------------------------------------------------------
Health Facilities Authority
3.55% $ 2,000
----------------------------------------------------------
Maricopa County
Pollution Control Revenue
3.65% 1,000
DISTRICT OF COLUMBIA
----------------------------------------------------------
General Obligation
3.70% 4,200
FLORIDA
----------------------------------------------------------
Housing Finance Authority
Multi-Family Housing Revenue
3.75% 1,000
GEORGIA
----------------------------------------------------------
Fulton County
Development Authority
3.65% 1,100
ILLINOIS
----------------------------------------------------------
Development Finance Authority
Catholic Charities Housing
3.60% 1,000
Industrial Development Revenue
4.05% 2,000
----------------------------------------------------------
Health Facilities Authority
3.60% 2,000
INDIANA
----------------------------------------------------------
Ossian
Economic Development
3.70% 1,000
----------------------------------------------------------
Rockport
Pollution Control Revenue
3.60% 2,000
MONTANA
----------------------------------------------------------
Forsyth
Pollution Control Revenue
3.80% 1,000
NORTH CAROLINA
----------------------------------------------------------
Lenoir County
Pollution Control Financing Authority
3.70% 1,000
----------------------------------------------------------
Medical Care Commission
Hospital Revenue
3.65% 1,250
PENNSYLVANIA
----------------------------------------------------------
Delaware Valley
Regional Finance Authority
3.65% 1,700
----------------------------------------------------------
<CAPTION>
Value
<S> <C>
Philadelphia
Redevelopment Authority
3.60% $ 1,600
TENNESSEE
----------------------------------------------------------
Maury County
Industrial Development Board
3.90% 2,000
----------------------------------------------------------
Smyrna Housing Association
Multi-Family Housing Revenue
3.90% 2,000
UTAH
----------------------------------------------------------
Springville
Industrial Development Revenue
3.45% 1,150
VIRGINIA
----------------------------------------------------------
Louisa County
Industrial Development Authority
3.65% 2,000
WISCONSIN
----------------------------------------------------------
Eau Claire
Solid Waste Disposal Revenue
3.70% 1,800
----------------------------------------------------------
TOTAL VARIABLE RATE
DEMAND SECURITIES--46.2%
(average maturity: 5 days) 32,800
----------------------------------------------------------
OTHER SECURITIES
ARIZONA
----------------------------------------------------------
Salt River Project
Agricultural Improvement and Power District
3.60%, 11/14/96 3,000
CALIFORNIA
----------------------------------------------------------
Revenue Anticipation Warrants
3.97%, 6/30/97 702
COLORADO
----------------------------------------------------------
Denver City and County
Airport System Revenue
3.80%, 11/12/96 - 11/14/96 2,500
----------------------------------------------------------
Platte River Power Authority
3.65%, 2/12/97 1,000
CONNECTICUT
----------------------------------------------------------
Mashantucket (Western) Pequot Tribe
3.60%, 12/18/96 1,800
----------------------------------------------------------
</TABLE>
<PAGE> 6
Cash Account Trust 6
- --------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO
Investments at October 31, 1996
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
GEORGIA
- ----------------------------------------------------------
Municipal Electric Authority
3.70%, 11/8/96 $ 1,500
ILLINOIS
- ----------------------------------------------------------
Development Finance Authority
3.60%, 11/8/96 1,500
- ----------------------------------------------------------
Educational Facilities Authority
3.60%, 11/13/96 2,610
INDIANA
- ----------------------------------------------------------
Bond Bank
Advance Funding Program Notes
3.50%, 1/9/97 1,002
- ----------------------------------------------------------
Gary
Environmental Improvement Revenue
3.70%, 2/13/97 1,000
- ----------------------------------------------------------
Jasper County
Pollution Control Revenue
3.55%, 11/15/96 3,000
KANSAS
- ----------------------------------------------------------
Burlington
Pollution Control and Improvement Revenue
3.65%, 2/12/97 1,000
KENTUCKY
- ----------------------------------------------------------
Danville
Multi-City Lease Revenue
3.70%, 12/12/96 1,000
NEW YORK
- ----------------------------------------------------------
General Obligation
3.65%, 11/12/96 1,800
- ----------------------------------------------------------
Nassau County
Revenue Anticipation Notes
3.40%, 3/5/97 1,001
NORTH CAROLINA
- ----------------------------------------------------------
Municipal Power Agency
3.60% - 3.65%, 11/13/96 - 11/15/96 2,000
- ----------------------------------------------------------
PENNSYLVANIA
- ----------------------------------------------------------
Philadelphia School District
Tax and Revenue Anticipation Notes
4.00%, 6/30/97 803
- ----------------------------------------------------------
Value
Venango
Industrial Development Authority
3.65%, 12/9/96 $ 2,500
TEXAS
- ----------------------------------------------------------
Municipal Power Agency
3.55%, 12/12/96 1,500
- ----------------------------------------------------------
Public Finance Authority
3.60%, 11/14/96 1,000
- ----------------------------------------------------------
San Antonio
Electric and Gas Systems
3.60%, 11/14/96 2,000
- ----------------------------------------------------------
Tax and Revenue Anticipation Notes
3.95%, 8/29/97 503
UTAH
- ----------------------------------------------------------
Intermountain Power Agency
3.55%, 12/16/96 1,000
VIRGINIA
- ----------------------------------------------------------
Chesapeake
Industrial Development Authority
3.70%, 12/11/96 1,000
- ----------------------------------------------------------
Chesterfield
Industrial Development Authority
3.60%, 11/15/96 1,500
- ----------------------------------------------------------
TOTAL OTHER SECURITIES--53.9%
(average maturity: 43 days) 38,221
- ----------------------------------------------------------
TOTAL INVESTMENTS--100.1%
(average maturity: 26 days) 71,021
- ----------------------------------------------------------
LIABILITIES, LESS CASH AND OTHER ASSETS--(.1)% (45)
- ----------------------------------------------------------
NET ASSETS--100% $70,976
- ----------------------------------------------------------
</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, 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, 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 October 31, 1996, the aggregate value of illiquid
securities was $26,107,000 in the Money Market Portfolio, which represented 5.8%
of net assets.
(c) 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
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1996
(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 $ 394,066 125,175 71,021
- ---------------------------------------------------------------------------------------------------------------------------
Repurchase agreements 65,000 94,000 --
- ---------------------------------------------------------------------------------------------------------------------------
Cash -- -- 468
- ---------------------------------------------------------------------------------------------------------------------------
Receivable for:
Interest 1,439 1,982 371
- ---------------------------------------------------------------------------------------------------------------------------
Securities sold -- -- 6,315
- ---------------------------------------------------------------------------------------------------------------------------
Total assets 460,505 221,157 78,175
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND NET ASSETS
- ---------------------------------------------------------------------------------------------------------------------------
Cash overdraft 5,730 449 --
- ---------------------------------------------------------------------------------------------------------------------------
Payable for:
Dividends 556 282 55
- ---------------------------------------------------------------------------------------------------------------------------
Securities purchased -- -- 7,100
- ---------------------------------------------------------------------------------------------------------------------------
Management fee 64 22 2
- ---------------------------------------------------------------------------------------------------------------------------
Distribution services fee 236 110 29
- ---------------------------------------------------------------------------------------------------------------------------
Custodian and transfer agent fees and related expenses 93 49 8
- ---------------------------------------------------------------------------------------------------------------------------
Trustees' fees and other 44 72 5
- ---------------------------------------------------------------------------------------------------------------------------
Total liabilities 6,723 984 7,199
- ---------------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 453,782 220,173 70,976
- ---------------------------------------------------------------------------------------------------------------------------
THE PRICING OF SHARES
- ---------------------------------------------------------------------------------------------------------------------------
Shares outstanding 453,782 220,173 70,976
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value and redemption price per share $1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE> 9
Cash Account Trust 9
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
Six months ended October 31, 1996
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY GOVERNMENT
MARKET SECURITIES TAX-EXEMPT
PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------------
<S> <C> <C> <C>
INTEREST INCOME $ 13,119 5,556 1,271
- -----------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fee 508 226 75
- -----------------------------------------------------------------------------------------------------------------------------
Distribution services fee 1,429 603 175
- -----------------------------------------------------------------------------------------------------------------------------
Custodian and transfer agent fees and related expenses 443 138 48
- -----------------------------------------------------------------------------------------------------------------------------
Registration costs 86 82 46
- -----------------------------------------------------------------------------------------------------------------------------
Professional fees 15 6 3
- -----------------------------------------------------------------------------------------------------------------------------
Reports to shareholders 23 10 4
- -----------------------------------------------------------------------------------------------------------------------------
Trustees' fees and other 16 8 4
- -----------------------------------------------------------------------------------------------------------------------------
Total expenses before expense waiver 2,520 1,073 355
- -----------------------------------------------------------------------------------------------------------------------------
Less expenses waived by the investment manager (119) (161) (73)
- -----------------------------------------------------------------------------------------------------------------------------
Total expenses absorbed by the Portfolio 2,401 912 282
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income 10,718 4,644 989
- -----------------------------------------------------------------------------------------------------------------------------
Net realized loss on investments (1,416) -- --
- -----------------------------------------------------------------------------------------------------------------------------
Change in unrealized depreciation on investments 1,416 -- --
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 10,718 4,644 989
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
Six months ended October 31, 1996 and year ended April 30, 1996
(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,
1996 1996 1996 1996 1996 1996
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS, DIVIDENDS AND CAPITAL SHARE ACTIVITY
Net investment income $ 10,718 20,031 4,644 8,773 989 2,208
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized loss (1,416) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Change in unrealized depreciation 1,416 (590) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Capital contribution from investment manager -- 590 -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (10,718) (20,031) (4,644) (8,773 ) (989) (2,208 )
- ---------------------------------------------------------------------------------------------------------------------------------
Capital share transactions (dollar amounts and
number of shares are the same):
Shares sold 900,953 1,341,848 363,423 684,586 125,009 256,475
- ---------------------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of dividends 10,592 20,087 4,549 8,850 980 2,221
- ---------------------------------------------------------------------------------------------------------------------------------
911,545 1,361,935 367,972 693,436 125,989 258,696
Shares redeemed (912,788) (1,285,461) (337,718) (641,537 ) (121,994) (259,463 )
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from capital share
transactions and total increase (decrease) in net
assets (1,243) 76,474 30,254 51,899 3,995 (767 )
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 455,025 378,551 189,919 138,020 66,981 67,748
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 453,782 455,025 220,173 189,919 70,976 66,981
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 10
Cash Account Trust 10
- --------------------------------------------------------------------------------
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 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 taxable 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 during the six months ended October 31,
1996.
3. TRANSACTIONS WITH AFFILIATES
MANAGEMENT AGREEMENT
The Fund has a management agreement with Zurich Kemper Investments, Inc. (ZKI)
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 six months ended October 31, 1996, the Fund incurred
management fees of $809,000.
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, 1996, the Fund incurred distribution fees of $2,207,000. KDI has related
service agreements with various firms to provide cash management and other
services for Fund shareholders. Under these agreements, KDI pays such
<PAGE> 11
Cash Account Trust 11
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
firms based on the average daily net assets of those accounts 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, 1996, KDI paid fees of $2,206,000 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 $566,000 for the six
months ended October 31, 1996.
OFFICERS AND TRUSTEES
Certain officers or trustees of the Fund are also officers or directors of ZKI.
During the six months ended October 31, 1996, the Fund made no payments to its
officers and incurred trustees' fees of $14,000 to independent trustees.
EXPENSE ABSORPTION
ZKI has agreed to temporarily waive its management fee and absorb 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%). Under this
arrangement, ZKI absorbed expenses of $353,000 during the six months ended
October 31, 1996.
<PAGE> 12
Cash Account Trust 12
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six months
ended
October 31, Year ended April 30,
MONEY MARKET PORTFOLIO 1996 1996 1995 1994 1993
- ------------------------------------------------------------------------------------------------------------------------------
<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 .05 .04 .02 .02
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 2.27% 4.96 4.38 2.42 2.65
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Expenses after expense waiver 1.00% 1.00 .99 .93 .84
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income 4.46% 4.83 4.54 2.48 2.59
- ------------------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Expenses 1.05% 1.05 1.05 1.20 1.36
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income 4.41% 4.78 4.48 2.21 2.07
- ------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $ 453,782 455,025 378,551 156,153 34,267
- ------------------------------------------------------------------------------------------------------------------------------
</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>
Six months
ended
October 31, Year ended April 30,
GOVERNMENT SECURITIES PORTFOLIO 1996 1996 1995 1994 1993
- ------------------------------------------------------------------------------------------------------------------------------
<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 .05 .04 .02 .02
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 2.33% 5.01 4.37 2.49 2.65
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Expenses after expense waiver .90% .90 .90 .84 .79
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income 4.58% 4.88 4.66 2.47 2.63
- ------------------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Expenses 1.06% 1.06 1.05 1.22 1.18
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income 4.42% 4.72 4.51 2.09 2.24
- ------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $ 220,173 189,919 138,020 30,829 28,963
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 13
Cash Account Trust 13
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six months
ended
October 31, Year ended April 30,
TAX-EXEMPT PORTFOLIO 1996 1996 1995 1994 1993
<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 .01 .03 .03 .02 .02
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 1.43% 3.16 2.80 1.84 2.13
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Expenses after expense waiver .80% .78 .76 .74 .71
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income 2.81% 3.10 3.00 1.82 2.09
- ------------------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Expenses 1.01% .98 .93 1.20 1.39
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income 2.60% 2.90 2.83 1.36 1.41
- ------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $70,976 66,981 67,748 16,991 10,014
- ------------------------------------------------------------------------------------------------------------------------------
</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.
<PAGE> 14
Cash Account Trust 14
- --------------------------------------------------------------------------------
Notes
- --------------------------------------------------------------------------------
<PAGE> 15
CASH ACCOUNT
TRUST
SEMIANNUAL
REPORT
OCTOBER 31, 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.
222 South Riverside Plaza, Chicago, IL 60606
1024900 11/96 (LOGO)
Printed on recycled paper.
