<PAGE> 1
Cash Account Trust
- --------------------------------------------------------------------------------
DEAR SHAREHOLDERS:
- --------------------------------------------------------------------------------
We are pleased to provide you with the Cash Account Trust annual
report for the year ended April 30, 1997.
Your fund's management greatly appreciates your decision to invest in Cash
Account Trust. During the past year, the Fund registered solid performance and
achieved its objective of providing maximum current income consistent with
stability of principal.
ECONOMIC REVIEW AND OUTLOOK
The economy continues to grow at a healthy rate, as it has for the last two
quarters, with few signs of inflationary pressures. The nation's economic growth
surged at a 5.8% annual rate during the first three months of this year, the
best in a decade and even better than the government's first estimate. The
seasonally adjusted annual growth rate in the gross domestic product -- the sum
of all goods and services produced in the United States -- hasn't been higher
since the fourth quarter of 1987.
Looking ahead, the economy is expected to continue on its path of growth,
however at a slightly slower pace, with the possibility of increased
inflationary pressures. In this context, short-term interest rates should
continue to rise given the continuing strength of the economy.
Money market funds such as Cash Account Trust should offer the opportunity for
attractive yields and should continue to be an excellent place to invest your
money.
Your fund's management thanks you for the vote of confidence you have shown
through your investment and continues its dedication to performance. We look
forward to serving your investment needs for years to come.
Sincerely,
/s/ John W. Stuebe
John W. Stuebe
Vice President and Portfolio Manager
June 5, 1997
John Stuebe is Senior 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 year ended April 30, 1997, the fund's three Portfolios had the following
net yields:
The Money Market Portfolio had a net yield of 4.51%.
The Government Securities Portfolio had a net yield of 4.59%.
The Tax-Exempt Portfolio had a net yield of 2.78% and a tax-equivalent yield of
4.42%.
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 yield for the year ended April 30, 1997, is the 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
- ----------------------------------------------------------
MONEY MARKET PORTFOLIO
Investments at April 30, 1997
(Value in thousands)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
Corporate Obligations Value
<S> <C>
BANKING--6.4%
- ----------------------------------------------------------
(a)Bankers Trust New York Corp.
5.69%, 5/1/97 $ 12,996
- ----------------------------------------------------------
Credit Lyonnais N.A. Inc.
5.80%, 7/22/97 14,805
- ----------------------------------------------------------
Sumitomo Bank Capital Markets, Inc.
5.54%, 5/12/97 9,983
- ----------------------------------------------------------
37,784
BUSINESS LOANS--19.5%
- ----------------------------------------------------------
Heller Financial, Inc.
5.85%, 7/14/97 9,881
- ----------------------------------------------------------
International Securitization Corp.
5.68%, 6/23/97 14,876
- ----------------------------------------------------------
Jet Funding Corp.
5.82%, 7/31/97 14,783
- ----------------------------------------------------------
National Fleet Funding Corp.
5.42%, 5/13/97 14,973
- ----------------------------------------------------------
Preferred Receivables Funding Corp.
5.68%, 5/8/97 9,989
- ----------------------------------------------------------
Sigma Finance, Inc.
5.68%, 6/16/97 14,892
- ----------------------------------------------------------
Strategic Asset Funding Corp.
5.83%, 6/30/97 14,856
- ----------------------------------------------------------
WCP Funding Inc.
5.65%, 6/2/97 9,950
- ----------------------------------------------------------
Working Capital Management Co., L.P.
5.72%, 6/10/97 9,937
- ----------------------------------------------------------
114,137
CAPITAL AND EQUIPMENT LENDING--9.6%
- ----------------------------------------------------------
BTM Capital Corp.
5.82%, 7/15/97 14,821
- ----------------------------------------------------------
(a)Caterpillar Financial Services Corp.
5.63%, 5/28/97 15,000
- ----------------------------------------------------------
SRD Finance Inc.
5.72%, 6/19/97 14,884
- ----------------------------------------------------------
(a)Sanwa Business Credit Corp.
5.71%, 5/16/97 11,499
- ----------------------------------------------------------
56,204
CAPTIVE BUSINESS LENDING--2.9%
- ----------------------------------------------------------
(a)(b) Capital One Funding Corp.
5.70%, 5/7/97 8,868
- ----------------------------------------------------------
(a)FINOVA Capital Corp.
5.77%, 5/15/97 8,000
- ----------------------------------------------------------
16,868
</TABLE>
<TABLE>
<CAPTION>
Corporate Obligations Value
<S> <C>
CONSUMER LENDING--6.5%
- ----------------------------------------------------------
Barton Capital Corp.
5.69%, 5/15/97 $ 14,967
- ----------------------------------------------------------
(a)Federal National Mortgage Association
5.68%, 5/6/97 4,963
- ----------------------------------------------------------
(a)Household International, Inc.
5.67%, 5/27/97 5,001
- ----------------------------------------------------------
Sears Roebuck Acceptance Corp.
5.66%, 6/9/97 12,921
- ----------------------------------------------------------
37,852
DIVERSIFIED FINANCE--6.8%
- ----------------------------------------------------------
(a)CIT Group Holdings, Inc.
5.62%, 5/1/97 14,697
- ----------------------------------------------------------
Dynamic Funding Corp.
5.80%, 7/7/97 9,894
- ----------------------------------------------------------
STRAIT Capital Corp.
5.53%, 5/15/97 14,968
- ----------------------------------------------------------
39,559
FINANCIAL SERVICES--14.0%
- ----------------------------------------------------------
(a)Bear Stearns Companies Inc.
5.69% - 5.72%, 5/6/97 - 5/19/97 18,000
- ----------------------------------------------------------
(a)Goldman, Sachs Group, L.P.
5.70%, 5/18/97 13,000
- ----------------------------------------------------------
(a)(b)Lehman Brothers Holdings Inc.
5.75%, 5/21/97 18,000
- ----------------------------------------------------------
(a)Merrill Lynch & Co., Inc.
5.65%, 5/19/97 12,998
- ----------------------------------------------------------
Nomura Holding America Inc.
5.84%, 7/16/97 9,879
- ----------------------------------------------------------
(a)Salomon Inc.
5.89%, 5/7/97 10,000
- ----------------------------------------------------------
81,877
HEALTH CARE--1.7%
- ----------------------------------------------------------
Columbia/HCA Healthcare Corp.
5.68%, 6/17/97 9,927
- ----------------------------------------------------------
STATE OBLIGATION--.4%
- ----------------------------------------------------------
(a)Texas, General Obligation
5.63%, 5/7/97 2,255
- ----------------------------------------------------------
</TABLE>
<PAGE> 3
Cash Account Trust 3
- ---------------------------------------------------------
MONEY MARKET PORTFOLIO
Investments at April 30, 1997
(Value in thousands)
- ---------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
UTILITIES--8.1%
- ----------------------------------------------------------
Brazos River Authority, Texas
5.67%, 6/6/97 $ 8,000
- ----------------------------------------------------------
Frontier Corp.
5.53%, 5/16/97 14,966
- ----------------------------------------------------------
Gulf Coast Waste Authority, Texas
5.43%, 5/7/97 14,223
- ----------------------------------------------------------
New Hampshire
Industrial Development Authority
5.67%, 6/6/97 10,000
- ----------------------------------------------------------
47,189
- ----------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS--75.9%
(average maturity: 32 days) 443,652
- ----------------------------------------------------------
CERTIFICATES OF DEPOSIT
(a)AmSouth Bank of Alabama
5.59%, 5/7/97 13,996
- ----------------------------------------------------------
Bayerische Landesbank
5.72%, 7/24/97 9,999
- ----------------------------------------------------------
(a)Key Bank, N.A.
5.64%, 5/1/97 9,998
- ----------------------------------------------------------
MBNA America Bank N.A.
5.75%, 7/21/97 10,000
- ----------------------------------------------------------
(a)Morgan Guaranty Trust
5.63%, 5/1/97 9,996
- ----------------------------------------------------------
(a)Old Kent Bank
5.70%, 5/1/97 18,000
- ----------------------------------------------------------
(a)PNC Bank, N.A.
5.62%, 5/1/97 9,995
- ----------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT--14.0%
(average maturity: 21 days) 81,984
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
(C)REPURCHASE AGREEMENTS
(Dated 4/97, collateralized by Federal Home Loan
Mortgage Corp. and Federal National Mortgage
Association securities)
- ----------------------------------------------------------
Nomura Securities International, Inc.
(held at The Bank of New York)
5.57% - 5.65%, 5/21/97 - 6/27/97 $ 40,000
- ----------------------------------------------------------
Salomon Brothers Inc.
(held at The Bank of New York)
5.65%, 6/11/97 25,000
- ----------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS--11.1%
(average maturity: 42 days) 65,000
- ----------------------------------------------------------
TOTAL INVESTMENTS--101.0%
(average maturity: 32 days) 590,636
- ----------------------------------------------------------
LIABILITIES, LESS OTHER ASSETS--(1.0%) (5,689)
- ----------------------------------------------------------
NET ASSETS--100% $584,947
==========================================================
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 4
Cash Account Trust 4
- ----------------------------------------------------------
GOVERNMENT SECURITIES PORTFOLIO
Investments at April 30, 1997
(Value in thousands)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
Short-Term Notes Value
<S> <C>
(Issued or guaranteed by U.S. Government agencies
or instrumentalities)
- -----------------------------------------------------------
(a)Export-Import Bank of the United States
Kuwait Investment Authority
5.92%, 5/15/97 $ 6,498
- -----------------------------------------------------------
Federal Home Loan Bank
(a) 5.51%, 5/2/97 - 5/27/97 11,198
5.99%, 9/18/97 2,999
- -----------------------------------------------------------
Federal Home Loan Mortgage Corp.
6.16%, 9/1/97 2,856
- -----------------------------------------------------------
Federal National Mortgage Association
(a) 5.53% - 5.68%, 5/3/97 - 5/6/97 27,353
5.76% - 6.10%, 7/25/97 - 9/3/97 11,066
- -----------------------------------------------------------
(a)Overseas Private Investment Corp.
Omolon
5.66%, 5/6/97 26,000
- -----------------------------------------------------------
(a)Student Loan Marketing Association
5.55% - 5.62%, 5/6/97 - 6/30/97 96,666
- -----------------------------------------------------------
TOTAL SHORT-TERM NOTES--33.9%
(average maturity: 16 days) 184,636
- -----------------------------------------------------------
(c)REPURCHASE AGREEMENTS
(Dated 3/97 and 4/97, collateralized by Federal
Home Loan Mortgage Corp., Federal National
Mortgage Association, Government National
Mortgage Association and U.S. Treasury
securities)
- -----------------------------------------------------------
Bear, Stearns & Co. Inc.
5.66% - 5.75%, 5/7/97 - 7/2/97 50,000
- -----------------------------------------------------------
CS First Boston Inc.
(held at The Chase Manhattan Bank)
5.58%, 5/1/97 20,000
- -----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Short-Term Notes Value
<S> <C>
Chase Securities, Inc.
(held at The Chase Manhattan Bank)
5.55%, 5/1/97 $ 20,000
- -----------------------------------------------------------
Goldman, Sachs & Co.
(held at The Bank of New York)
5.40% - 5.45%, 5/2/97 - 5/5/97 21,000
- -----------------------------------------------------------
Lehman Government Securities Inc.
(held at The Chase Manhattan Bank)
5.48%, 5/7/97 23,000
- -----------------------------------------------------------
Merrill Lynch Government Securities, Inc.
(held at The Chase Manhattan Bank)
5.43%, 5/5/97 22,000
- -----------------------------------------------------------
Morgan Stanley & Co. Inc.
(held at The Bank of New York)
5.59% - 5.68%, 6/11/97 - 7/30/97 80,000
- -----------------------------------------------------------
Nomura Securities International, Inc.
(held at The Bank of New York)
5.55% - 5.60%, 5/14/97 - 5/21/97 77,000
- -----------------------------------------------------------
Salomon Brothers Inc.
(held at The Bank of New York)
5.65% - 5.73%, 6/18/97 - 7/15/97 76,000
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS--71.4%
(average maturity: 29 days) 389,000
- -----------------------------------------------------------
TOTAL INVESTMENTS--105.3%
(average maturity: 25 days) 573,636
- -----------------------------------------------------------
LIABILITIES, LESS OTHER ASSETS--(5.3)% (29,135)
- -----------------------------------------------------------
NET ASSETS--100% $544,501
- -----------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 5
Cash Account Trust 5
- ---------------------------------------------------------
TAX-EXEMPT PORTFOLIO
Investments at April 30, 1997
(Value in thousands)
- ---------------------------------------------------------
<TABLE>
<CAPTION>
(a)Variable Rate Demand Securities Value
<S> <C>
ARIZONA
- ---------------------------------------------------------
Apache County
Industrial Development Authority
4.50% $ 6,000
- ---------------------------------------------------------
Health Facilities Authority
4.55% 2,000
- ---------------------------------------------------------
Maricopa County
Pollution Control Corp.
4.60% 2,600
CALIFORNIA
- ---------------------------------------------------------
Los Angeles
Harbor Improvement Corp.
4.70% 6,500
- ---------------------------------------------------------
Sacramento County
Housing Authority
4.70% 3,400
DISTRICT OF COLUMBIA
- ---------------------------------------------------------
General Obligation
4.15% 1,100
FLORIDA
- ---------------------------------------------------------
Alachua County
Health Facilities Authority
4.50% 3,800
- ---------------------------------------------------------
Dade County
Health Facilities Authority
4.40% 1,600
ILLINOIS
- ---------------------------------------------------------
Development Finance Authority
5.00% 2,000
- ---------------------------------------------------------
Elgin
Judson College Project
4.65% 4,000
- ---------------------------------------------------------
Rockford
Industrial Project Revenue
4.80% 2,300
- ---------------------------------------------------------
Student Assistance Commission
4.60% 1,000
INDIANA
- ---------------------------------------------------------
Health Facility Financing Authority
4.62% 5,645
- ---------------------------------------------------------
Ossian
Economic Development Revenue
4.80% 1,000
- ---------------------------------------------------------
Rockport
Pollution Control Revenue
4.05% 2,000
- ---------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
(a)Variable Rate Demand Securities Value
<S> <C>
Seymour
Economic Development Revenue
4.40% $ 3,600
KENTUCKY
- ---------------------------------------------------------
Boone County
Pollution Control Revenue
3.65% 4,000
- ---------------------------------------------------------
Bowling Green
Industrial Building Revenue
4.40% 2,400
- ---------------------------------------------------------
Mayfield
Multi-City Lease Revenue
4.15% 5,000
LOUISIANA
- ---------------------------------------------------------
Public Facilities Authority
4.50% 5,500
NEW HAMPSHIRE
- ---------------------------------------------------------
Business Finance Authority
4.60% 2,000
NEW MEXICO
- ---------------------------------------------------------
Farmington
Pollution Control Revenue
4.53% 6,200
NORTH CAROLINA
- ---------------------------------------------------------
Lenoir County
Pollution Control Financing Authority
4.75% 1,000
- ---------------------------------------------------------
Medical Care Commission
Hospital Revenue
4.65% 4,250
OHIO
- ---------------------------------------------------------
Medina County
Health Care Facilities Revenue
4.70% 4,500
OREGON
- ---------------------------------------------------------
Economic Development Revenue
4.70% 4,500
PENNSYLVANIA
- ---------------------------------------------------------
Delaware County
Redevelopment Authority
5.17% 5,000
- ---------------------------------------------------------
Delaware Valley
Regional Finance Authority
4.60% 7,200
- ---------------------------------------------------------
Emmaus
General Authority Revenue
4.56% 7,000
- ---------------------------------------------------------
</TABLE>
<PAGE> 6
Cash Account Trust 6
- ---------------------------------------------------------
TAX-EXEMPT PORTFOLIO
Investments at April 30, 1997
(Value in thousands)
- ---------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
Lehigh County
Industrial Development Authority
3.65% $ 5,000
- ---------------------------------------------------------
Philadelphia
Redevelopment Authority
4.70% 1,500
TENNESSEE
- ---------------------------------------------------------
Clarksville
Public Building Authority
4.70% 4,300
- ---------------------------------------------------------
Maury County
Industrial Development Board
4.90% 2,000
- ---------------------------------------------------------
Smyrna Housing Association
Multi-Family Housing Revenue
4.90% 5,000
TEXAS
- ---------------------------------------------------------
Corpus Christi
Industrial Development Corp.
4.15% 2,100
- ---------------------------------------------------------
Port Arthur
Industrial Development Corp.
4.55% 5,000
UTAH
- ---------------------------------------------------------
Springville
Industrial Development Revenue
4.60% 1,150
VIRGINIA
- ---------------------------------------------------------
Louisa County
Industrial Development Authority
4.70% 2,000
WASHINGTON
- ---------------------------------------------------------
Port Angeles
Industrial Development Corp.
4.40% 3,500
WISCONSIN
- ---------------------------------------------------------
Eau Claire
Solid Waste Disposal Revenue
4.70% 1,800
- ---------------------------------------------------------
TOTAL VARIABLE RATE
DEMAND SECURITIES--63.6%
(average maturity: 6 days) 140,445
- ---------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
OTHER SECURITIES
ALASKA
- ---------------------------------------------------------
Valdez
Marine Terminal Revenue
3.45% - 3.75%, 5/13/97 - 7/24/97 $ 6,000
ARIZONA
- ---------------------------------------------------------
Salt River Project
Agricultural Improvement and Power District
3.70%, 6/23/97 3,500
CALIFORNIA
- ---------------------------------------------------------
Revenue Anticipation Warrants
3.97%, 6/30/97 700
COLORADO
- ---------------------------------------------------------
Platte River Power Authority
3.50%, 5/12/97 1,000
FLORIDA
- ---------------------------------------------------------
Orange County
Governmental Regional Financing
3.75%, 6/23/97 3,500
- ---------------------------------------------------------
Orlando
Waste Water System Revenue
3.55%, 6/20/97 1,000
- ---------------------------------------------------------
Sarasota County
Public Hospital District
3.50%, 5/14/97 2,850
- ---------------------------------------------------------
Sunshine State
Governmental Financing Commission
3.70%, 6/20/97 3,000
GEORGIA
- ---------------------------------------------------------
Municipal Electric Authority
3.40%, 5/12/97 2,650
INDIANA
- ---------------------------------------------------------
Gary
Environmental Improvement Revenue
3.80%, 7/24/97 1,000
- ---------------------------------------------------------
Jasper County
Pollution Control Revenue
3.50% - 3.85%, 5/9/97 - 7/18/97 6,535
KENTUCKY
- ---------------------------------------------------------
Danville
Multi-City Lease Revenue
3.70%, 6/20/97 3,490
- ---------------------------------------------------------
Pendleton County
Multi-County Lease Revenue
3.40%, 5/8/97 - 5/12/97 4,500
- ---------------------------------------------------------
</TABLE>
<PAGE> 7
Cash Account Trust 7
- ---------------------------------------------------------
TAX-EXEMPT PORTFOLIO
Investments at April 30, 1997
(Value in thousands)
- ---------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
MARYLAND
- ---------------------------------------------------------
Anne Arundel County
Port Facilities Revenue
3.50%, 5/14/97 $ 1,000
MISSISSIPPI
- ---------------------------------------------------------
Claiborne County
Pollution Control Revenue
3.75%, 7/24/97 4,400
NEW HAMPSHIRE
- ---------------------------------------------------------
Business Finance Authority
3.55%, 5/13/97 4,000
NEW YORK
- ---------------------------------------------------------
General Obligation
4.02%, 8/1/97 2,503
- ---------------------------------------------------------
General Obligation
Bond Anticipation Notes
3.85%, 7/23/97 1,300
- ---------------------------------------------------------
Municipal Water Finance Authority
3.75%, 7/31/97 1,000
NORTH CAROLINA
- ---------------------------------------------------------
Municipal Power Agency
3.45%, 5/9/97 2,000
PENNSYLVANIA
- ---------------------------------------------------------
Philadelphia School District
Tax and Revenue Anticipation Notes
4.00%, 6/30/97 801
TEXAS
- ---------------------------------------------------------
Brazoria County
Brazos River Harbor Navigation District
3.55%, 5/14/97 1,000
- ---------------------------------------------------------
Dallas
Area Rapid Transit
3.45%, 5/13/97 1,000
- ---------------------------------------------------------
Harris County
Health Facilities Development Corp.
3.75%, 6/30/97 5,000
- ---------------------------------------------------------
Municipal Power Agency
3.45%, 5/9/97 1,200
- ---------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Public Finance Authority
3.45%, 5/12/97 $ 3,000
- ---------------------------------------------------------
San Antonio
Electric and Gas Systems
3.45%, 5/12/97 - 5/14/97 4,400
- ---------------------------------------------------------
Tax and Revenue Anticipation Notes
3.95%, 8/29/97 501
UTAH
- ---------------------------------------------------------
Tooele County
Waste Treatment Revenue
4.15%, 7/15/97 1,400
VIRGINIA
- ---------------------------------------------------------
Chesapeake
Industrial Development Authority
3.40%, 5/15/97 1,000
- ---------------------------------------------------------
Chesterfield County
Industrial Development Authority
3.50% - 3.75%, 5/14/97 - 7/24/97 3,350
- ---------------------------------------------------------
Louisa County
Industrial Development Authority
3.75% - 4.05%, 6/23/97 - 7/16/97 2,000
- ---------------------------------------------------------
Norfolk
Industrial Development Authority
3.45%, 5/13/97 2,315
- ---------------------------------------------------------
TOTAL OTHER SECURITIES--37.6%
(average maturity: 40 days) 82,895
- ---------------------------------------------------------
TOTAL INVESTMENTS--101.2%
(average maturity: 18 days) 223,340
- ---------------------------------------------------------
LIABILITIES, LESS OTHER ASSETS--(1.2)% (2,549)
- ---------------------------------------------------------
NET ASSETS--100% $220,791
- ---------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 8
Cash Account Trust 8
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIOS OF INVESTMENTS
- --------------------------------------------------------------------------------
Interest rates represent annualized yield to date of maturity, except for
variable rate securities described in Note (a). For each security, 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,
1997. 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, 1997, the aggregate value of illiquid
securities was $26,868,000 in the Money Market Portfolio, which represented 4.6%
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> 9
Cash Account Trust 9
- --------------------------------------------------------------------------------
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, 1997, 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 1993. These financial statements
and financial highlights are the responsibility of the Trust'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, 1997, 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, 1997, 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 1993, in conformity with generally accepted
accounting principles.
ERNST & YOUNG LLP
Chicago, Illinois
June 13, 1997
<PAGE> 10
Cash Account Trust 10
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1997
(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 $525,636 184,636 223,340
- ------------------------------------------------------------------------------------------------------------
Repurchase agreements 65,000 389,000 --
- ------------------------------------------------------------------------------------------------------------
Receivable for:
Interest 1,359 3,208 893
- ------------------------------------------------------------------------------------------------------------
Securities sold -- -- 2,005
- ------------------------------------------------------------------------------------------------------------
Fund shares sold 24 28 9
- ------------------------------------------------------------------------------------------------------------
Total assets 592,019 576,872 226,247
- ------------------------------------------------------------------------------------------------------------
LIABILITIES AND NET ASSETS
- ------------------------------------------------------------------------------------------------------------
Cash overdraft 4,417 10 4,552
- ------------------------------------------------------------------------------------------------------------
Payable for:
Dividends 692 628 142
- ------------------------------------------------------------------------------------------------------------
Fund shares redeemed 1,359 947 609
- ------------------------------------------------------------------------------------------------------------
Securities purchased -- 30,000 --
- ------------------------------------------------------------------------------------------------------------
Management fee 137 311 39
- ------------------------------------------------------------------------------------------------------------
Distribution services fee 296 272 69
- ------------------------------------------------------------------------------------------------------------
Custodian and transfer agent fees and related expenses 145 152 32
- ------------------------------------------------------------------------------------------------------------
Trustees' fees and other 26 51 13
- ------------------------------------------------------------------------------------------------------------
Total liabilities 7,072 32,371 5,456
- ------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $584,947 544,501 220,791
- ------------------------------------------------------------------------------------------------------------
THE PRICING OF SHARES
- ------------------------------------------------------------------------------------------------------------
Shares outstanding 584,947 544,501 220,791
- ------------------------------------------------------------------------------------------------------------
Net asset value and redemption price per share $1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE> 11
Cash Account Trust 11
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
Year ended April 30, 1997
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY GOVERNMENT
MARKET SECURITIES TAX-EXEMPT
PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------------
<S> <C> <C> <C>
INTEREST INCOME $30,185 19,512 3,634
- -----------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fee 1,150 744 212
- -----------------------------------------------------------------------------------------------------------------------
Distribution services fee 3,287 2,127 506
- -----------------------------------------------------------------------------------------------------------------------
Custodian and transfer agent fees and related expenses 965 489 141
- -----------------------------------------------------------------------------------------------------------------------
Registration costs 141 87 87
- -----------------------------------------------------------------------------------------------------------------------
Professional fees 32 16 6
- -----------------------------------------------------------------------------------------------------------------------
Reports to shareholders 49 30 10
- -----------------------------------------------------------------------------------------------------------------------
Trustees' fees and other 26 13 6
- -----------------------------------------------------------------------------------------------------------------------
Total expenses before expense waiver 5,650 3,506 968
- -----------------------------------------------------------------------------------------------------------------------
Less expenses waived by the investment manager (175) (261) (143)
- -----------------------------------------------------------------------------------------------------------------------
Total expenses absorbed by the Portfolio 5,475 3,245 825
- -----------------------------------------------------------------------------------------------------------------------
Net investment income 24,710 16,267 2,809
- -----------------------------------------------------------------------------------------------------------------------
Net realized loss on investments (1,416) -- --
- -----------------------------------------------------------------------------------------------------------------------
Change in unrealized depreciation on investments 1,416 -- --
- -----------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $24,710 16,267 2,809
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
Years ended April 30, 1997 and 1996
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET GOVERNMENT TAX-EXEMPT
PORTFOLIO SECURITIES-PORTFOLIO PORTFOLIO
--------------------------------------------------------------------
1997 1996 1997 1996 1997 1996
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS, DIVIDENDS AND CAPITAL SHARE ACTIVITY
Net investment income $ 24,710 20,031 16,267 8,773 2,809 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 (24,710) (20,031) (16,267) (8,773) (2,809) (2,208)
- ----------------------------------------------------------------------------------------------------------------------------
Capital share transactions (dollar amounts and
number of shares are the same):
Shares sold 2,030,788 1,341,848 1,283,520 684,586 446,705 256,475
- ----------------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of dividends 24,932 20,087 16,766 8,850 2,925 2,221
- ----------------------------------------------------------------------------------------------------------------------------
2,055,720 1,361,935 1,300,286 693,436 449,630 258,696
Shares redeemed (1,925,798) (1,285,461) (945,704) (641,537) (295,820) (259,463)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from capital share
transactions and total increase (decrease) in net
assets 129,922 76,474 354,582 51,899 153,810 (767)
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of year 455,025 378,551 189,919 138,020 66,981 67,748
- ----------------------------------------------------------------------------------------------------------------------------
End of year $ 584,947 455,025 544,501 189,919 220,791 66,981
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 12
Cash Account Trust 12
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. DESCRIPTION OF THE FUND
Cash Account Trust (the Fund) is an open-end management investment company
organized as a business trust under the laws of Massachusetts currently offering
three series of shares (Portfolios). The Money Market Portfolio invests
primarily in short-term high quality obligations of major banks and
corporations. The Government Securities Portfolio invests exclusively in
obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities and repurchase agreements thereon. The Tax-Exempt Portfolio
invests in short-term high quality municipal securities.
2. SIGNIFICANT ACCOUNTING POLICIES
INVESTMENT VALUATION
Investments are stated at amortized cost, which approximates market value. In
the event that a deviation of 1/2 of 1% or more exists between a Portfolio's
$1.00 per share net asset value, calculated at amortized cost, and the net asset
value calculated by reference to market-based values, or if there is any other
deviation that the Board of Trustees believes would result in a material
dilution to shareholders or purchasers, the Board of Trustees will promptly
consider what action should be initiated.
INVESTMENT TRANSACTIONS AND INTEREST INCOME
Investment transactions are accounted for on the trade date (date the order to
buy or sell is executed). Interest income is recorded on the accrual basis and
includes amortization of premium and discount on investments.
EXPENSES
Expenses arising in connection with a Portfolio are allocated to that Portfolio.
Other Fund expenses are allocated among the Portfolios in proportion to their
relative net assets.
FUND SHARE VALUATION AND DIVIDENDS TO SHAREHOLDERS
Fund shares are sold and redeemed on a continuous basis at net asset value. On
each day that the New York Stock Exchange is open for trading, each Portfolio
determines its net asset value per share (NAV) by dividing the total value of
the Portfolio's investments and other assets, less liabilities, by the number of
Portfolio shares outstanding. The NAV is determined at 11:00 a.m., 1:00 p.m. and
3:00 p.m. Chicago time for the Money Market and Government Securities Portfolios
and at 11:00 a.m. and 3:00 p.m. Chicago time for the Tax-Exempt Portfolio. Each
Portfolio declares a daily dividend, equal to its net investment income for that
day, payable monthly. Net investment income consists of all interest income plus
(minus) all 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 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)
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, 1997, the Fund incurred
management fees of $2,106,000.
DISTRIBUTION AGREEMENT
The Fund also has an administration, shareholder services and distribution
agreement with Zurich Kemper Distributors, Inc. (ZKDI) (formerly known as Kemper
Distributors, Inc.). For its services as primary distributor, the Fund pays ZKDI
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, 1997, the Fund incurred
distribution fees of $5,920,000. ZKDI has related service agreements with
various firms to provide cash management and other services for Fund
<PAGE> 13
Cash Account Trust 13
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
shareholders. Under these agreements, ZKDI pays such 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 year ended April 30, 1997, ZKDI paid fees
of $5,929,000 to various firms pursuant to the related service agreements.
SHAREHOLDER SERVICES AGREEMENT
Pursuant to a services agreement with the Fund's transfer agent, Zurich Kemper
Service Company (ZKSvC) (formerly known as Kemper Service Company) is the
shareholder service agent of the Fund. Under the agreement, ZKSvC received
shareholder services fees of $1,348,000 for the year ended April 30, 1997.
OFFICERS AND TRUSTEES
Certain officers or trustees of the Fund are also officers or directors of ZKI.
During the year ended April 30, 1997, the Fund made no payments to its officers
and incurred trustees' fees of $28,000 to independent trustees.
EXPENSE ABSORPTION
For the period from May 1, 1996 through January 31, 1997, ZKI agreed to limit
the Portfolios' operating expenses to the following percentages of average daily
net assets: Money Market Portfolio (1.00%), Government Securities Portfolio
(.90%) and Tax-Exempt Portfolio (.80%). Beginning in February, 1997, the expense
limits were increased to the following percentages: Government Securities
Portfolio (.95%) and Tax-Exempt Portfolio (.85%). For the fiscal year ended
April 30, 1997, ZKI absorbed expenses of $579,000.
<PAGE> 14
Cash Account Trust 14
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year ended April 30,
MONEY MARKET PORTFOLIO 1997 1996 1995 1994 1993
- --------------------------------------------------------------------------------------------------------------------
<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 .05 .04 .02 .02
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $1.00 1.00 1.00 1.00 1.00
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 4.60% 4.96 4.38 2.42 2.65
- --------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
Expenses after expense waiver 1.00% 1.00 .99 .93 .84
- --------------------------------------------------------------------------------------------------------------------
Net investment income 4.51% 4.83 4.54 2.48 2.59
- --------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS:
Expenses 1.03% 1.05 1.05 1.20 1.36
- --------------------------------------------------------------------------------------------------------------------
Net investment income 4.48% 4.78 4.48 2.21 2.07
- --------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of year (in thousands) $584,947 455,025 378,551 156,153 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>
Year ended April 30,
GOVERNMENT SECURITIES PORTFOLIO 1997 1996 1995 1994 1993
- -------------------------------------------------------------------------------------------------------------------
<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 .05 .04 .02 .02
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $1.00 1.00 1.00 1.00 1.00
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 4.69% 5.01 4.37 2.49 2.65
- -------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
Expenses after expense waiver .92% .90 .90 .84 .79
- -------------------------------------------------------------------------------------------------------------------
Net investment income 4.59% 4.88 4.66 2.47 2.63
- -------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS:
Expenses .99% 1.06 1.05 1.22 1.18
- -------------------------------------------------------------------------------------------------------------------
Net investment income 4.52% 4.72 4.51 2.09 2.24
- -------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of year (in thousands) $544,501 189,919 138,020 30,829 28,963
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 15
Cash Account Trust 15
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year ended April 30,
TAX-EXEMPT PORTFOLIO 1997 1996 1995 1994 1993
- -------------------------------------------------------------------------------------------------------------------------
<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 .03 .02 .02
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $1.00 1.00 1.00 1.00 1.00
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 2.82% 3.16 2.80 1.84 2.13
- -------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
Expenses after expense waiver .81% .78 .76 .74 .71
- -------------------------------------------------------------------------------------------------------------------------
Net investment income 2.78% 3.10 3.00 1.82 2.09
- -------------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS:
Expenses .96% .98 .93 1.20 1.39
- -------------------------------------------------------------------------------------------------------------------------
Net investment income 2.63% 2.90 2.83 1.36 1.41
- -------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of year (in thousands) $220,791 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.
FEDERAL TAX STATUS OF 1997 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> 16
CASH ACCOUNT
TRUST
ANNUAL
REPORT
APRIL 30, 1997
This report is not to be distributed unless preceded or
accompanied by a prospectus.
INVESTMENT MANAGER
Zurich Kemper Investments, Inc.
PRINCIPAL UNDERWRITER
Zurich Kemper Distributors, Inc.
222 South Riverside Plaza, Chicago, IL 60606
CAT-2 1033890 (6/97) [LOGO]
Printed on recycled paper.
