<PAGE> 1
Cash Account Trust
- --------------------------------------------------------------------------------
DEAR SHAREHOLDERS:
- --------------------------------------------------------------------------------
e are pleased to provide you with the Cash Account Trust annual
report for the year ended April 30, 1998.
W
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 capital.
ECONOMIC REVIEW AND OUTLOOK
The stock market has marched steadily higher, in spite of the meager profit
growth in the first quarter. Corporate operating profits edged up only 4.1% --
the slimmest growth in earnings since the fourth quarter of 1991. Investors
appear to be looking beyond the depressing earnings results of the first quarter
of 1998 and anticipating a resurgence in corporate profitability in the second
half of the year. Accompanying the stock market's strong showing are a solid
housing market and a rapid plunge in crude-oil prices.
Looking ahead, it will take a while before it becomes clear whether Asian
economic weakness is beginning to take a bite out of the economy, and if
consumer spending will continue at its rapid pace. Asia's woes have had a
positive side, with cheaper imports and soft commodity prices helping to keep
inflation in line. This makes the Fed less likely to boost interest rates.
Money market funds such as Cash Account Trust 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,
FRANK J. RACHWALSKI
Frank Rachwalski
Vice President and Portfolio Manager
June 5, 1998
Frank Rachwalski is a Managing Director of Scudder Kemper Investments, Inc. and
Vice President and Portfolio Manager of Cash Account Trust. Mr. Rachwalski holds
B.B.A. and M.B.A. degrees from Loyola University.
PORTFOLIO RESULTS
For the year ended April 30, 1998, the fund's three Portfolios had the following
net yields:
The Money Market Portfolio had a net yield of 4.71%.
The Government Securities Portfolio had a net yield of 4.68%.
The Tax-Exempt Portfolio had a net yield of 2.87% and a tax-equivalent yield of
4.56%.
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, 1998, 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
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MONEY MARKET PORTFOLIO
Investments at April 30, 1998
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Corporate Obligations Value
<S> <C>
BANKING--9.0%
- ----------------------------------------------------------
Banque Nationale de Paris
5.57%, 5/15/98 $ 19,957
- ----------------------------------------------------------
Dresdner US Finance, Inc.
5.52%, 5/4/98 49,977
- ----------------------------------------------------------
Nordbanken North America, Inc.
5.57%, 5/28/98 24,897
- ----------------------------------------------------------
Skandinaviska Enskilda Banken
5.58%, 6/29/98 24,773
- ----------------------------------------------------------
(a)Societe Generale
5.59%, 7/16/98 9,997
- ----------------------------------------------------------
UBS Finance, Inc.
5.54%, 5/18/98 49,870
- ----------------------------------------------------------
179,471
BUSINESS LOANS--22.4%
- ----------------------------------------------------------
Banner Receivables Corp.
5.69%, 7/21/98 24,684
- ----------------------------------------------------------
Broadway Capital Corp.
5.66%, 7/20/98 9,876
- ----------------------------------------------------------
CXC, Inc.
5.59%, 6/26/98 24,785
- ----------------------------------------------------------
Corporate Asset Funding
5.56%, 6/10/98 24,847
- ----------------------------------------------------------
Corporate Receivables Corp.
5.60%, 7/17/98 14,822
- ----------------------------------------------------------
Enterprise Capital Funding Corp.
5.57%, 6/18/98 19,853
- ----------------------------------------------------------
Falcon Asset Securitization Corp.
5.60%, 5/5/98 24,985
- ----------------------------------------------------------
Golden Manager's Acceptance Corp.
5.57%, 5/27/98 24,900
- ----------------------------------------------------------
Gotham Capital Corp.
5.69%, 7/24/98 19,738
- ----------------------------------------------------------
International Securitization Corp.
5.59%, 6/12/98 24,838
- ----------------------------------------------------------
Kitty Hawk Funding Corp.
5.56% - 5.62%, 5/28/98 - 6/10/98 34,824
- ----------------------------------------------------------
Madison Funding Corp.
5.60%, 5/18/98 9,974
- ----------------------------------------------------------
Monte Rosa Capital Corp.
5.55% - 5.60%, 5/22/98 - 6/4/98 34,857
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Sheffield Receivables Corp.
5.57%, 5/15/98 $ 9,979
- ----------------------------------------------------------
Thunder Bay Funding, Inc.
5.58%, 6/16/98 14,894
- ----------------------------------------------------------
Twin Towers, Inc.
5.56%, 5/12/98 24,958
- ----------------------------------------------------------
Variable Funding Capital Corp.
5.56% - 5.59%, 6/11/98 - 6/26/98 19,851
- ----------------------------------------------------------
WCP Funding, Inc.
5.59%, 5/20/98 24,927
- ----------------------------------------------------------
Windmill Funding Corp.
5.55% - 5.59%, 5/20/98 - 5/21/98 29,910
- ----------------------------------------------------------
Wood Street Funding Corp.
5.56%, 5/28/98 9,959
- ----------------------------------------------------------
Working Capital Management Co., L.P.
6.27%, 5/1/98 20,000
- ----------------------------------------------------------
447,461
CAPITAL AND EQUIPMENT LENDING--10.2%
- ----------------------------------------------------------
Ace Overseas Corp.
5.63%, 6/8/98 9,941
- ----------------------------------------------------------
(a)American Honda Finance Corp.
5.67%, 7/23/98 10,000
- ----------------------------------------------------------
(a)Caterpillar Financial Services Corp.
5.56%, 5/18/98 15,000
- ----------------------------------------------------------
Centric Funding Corp.
5.58%, 5/19/98 14,959
- ----------------------------------------------------------
Chrysler Financial Corp.
5.58%, 5/14/98 24,950
- ----------------------------------------------------------
(a)Ford Motor Credit Co.
5.70%, 5/1/98 24,995
- ----------------------------------------------------------
(a)IBM Credit Corp.
5.64%, 5/1/98 19,997
- ----------------------------------------------------------
(a)John Deere Capital Corp.
5.50%, 5/11/98 14,993
- ----------------------------------------------------------
Ranger Funding Corp.
5.61%, 6/19/98 14,887
- ----------------------------------------------------------
(a)Sanwa Business Credit Corp.
5.63% - 5.73%, 5/8/98 - 7/15/98 28,211
- ----------------------------------------------------------
(a)Sigma Finance, Inc.
5.63%, 5/1/98 25,000
- ----------------------------------------------------------
202,933
</TABLE>
<PAGE> 3
Cash Account Trust 3
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MONEY MARKET PORTFOLIO
Investments at April 30, 1998
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
CAPTIVE BUSINESS LENDING--3.4%
- ----------------------------------------------------------
British Gas Capital, Inc.
5.57%, 5/15/98 $ 24,946
- ----------------------------------------------------------
(a)(b)Capital One Funding Corp.
5.61%, 5/7/98 8,372
- ----------------------------------------------------------
(a)FINOVA Capital Corp.
5.71%, 5/13/98 10,000
- ----------------------------------------------------------
Prudential Funding Corp.
5.58%, 5/1/98 15,000
(a) 5.59%, 5/11/98 10,000
- ----------------------------------------------------------
68,318
CONSUMER LENDING--9.9%
- ----------------------------------------------------------
American Express Credit Corp.
5.55%, 5/11/98 34,946
- ----------------------------------------------------------
(a)Beneficial Corp.
5.63%, 5/18/98 10,000
- ----------------------------------------------------------
(a)Federal National Mortgage Association
5.32%, 5/5/98 4,981
- ----------------------------------------------------------
(b)GMAC Mortgage Corporation of Pennsylvania
5.84%, 5/1/98 18,000
- ----------------------------------------------------------
(a)Household International, Inc.
5.56%, 5/29/98 19,987
- ----------------------------------------------------------
J.C. Penney Funding Corp.
5.58%, 5/29/98 34,850
- ----------------------------------------------------------
Sears Roebuck Acceptance Corp.
5.58%, 5/8/98 19,978
- ----------------------------------------------------------
(a)Student Loan Marketing Association
5.47%, 5/5/98 29,991
- ----------------------------------------------------------
Transamerica Finance Corp.
5.56% - 5.59%, 5/6/98 - 5/13/98 24,965
- ----------------------------------------------------------
197,698
CONSUMER PRODUCTS AND SERVICES--1.7%
- ----------------------------------------------------------
Coca-Cola Enterprises, Inc.
5.57% - 5.58%, 6/15/98 34,759
- ----------------------------------------------------------
DIVERSIFIED FINANCE--12.5%
- ----------------------------------------------------------
APEX Funding Corp.
5.68%, 6/25/98 19,828
- ----------------------------------------------------------
Alpine Securitization Corp.
5.56%, 6/9/98 24,851
- ----------------------------------------------------------
American General Finance Corp.
5.54%, 6/3/98 24,874
- ----------------------------------------------------------
Associates Corp. of N.A.
5.57%, 5/22/98 24,919
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Barton Capital Corp.
5.59%, 5/4/98 $ 19,991
- ----------------------------------------------------------
(a)CIT Group Holdings, Inc.
5.59%, 5/1/98 14,996
- ----------------------------------------------------------
Clipper Receivables Corp.
5.57%, 5/20/98 29,913
- ----------------------------------------------------------
Eureka Securitization, Inc.
5.59%, 5/20/98 24,927
- ----------------------------------------------------------
General Electric Capital Services, Inc.
5.57%, 5/7/98 19,982
- ----------------------------------------------------------
Heller Financial, Inc.
5.89%, 5/19/98 14,956
- ----------------------------------------------------------
Old Line Funding Corp.
5.57% - 5.59%, 5/7/98 - 6/4/98 29,908
- ----------------------------------------------------------
249,145
FINANCIAL SERVICES--7.2%
- ----------------------------------------------------------
(a)Bear Stearns Cos., Inc.
5.63% - 5.66%, 5/6/98 - 5/18/98 20,000
- ----------------------------------------------------------
(a)Goldman, Sachs Group, L.P.
5.58%, 5/1/98 20,000
- ----------------------------------------------------------
(a)Lehman Brothers Holdings, Inc.
5.71%, 5/20/98 15,000
- ----------------------------------------------------------
(a)Merrill Lynch & Co., Inc.
5.64%, 5/4/98 18,000
- ----------------------------------------------------------
(a)Morgan Stanley Dean Witter, Discover & Co.
5.65% - 5.67%, 5/8/98 - 6/18/98 21,003
- ----------------------------------------------------------
Nomura Holding America, Inc.
5.75%, 7/29/98 14,790
- ----------------------------------------------------------
Salomon Smith Barney Holdings, Inc.
(a) 5.76%, 5/4/98 10,000
5.55%, 6/5/98 24,866
- ----------------------------------------------------------
143,659
HEALTH CARE--1.3%
- ----------------------------------------------------------
Baxter International, Inc.
5.56% - 5.62%, 5/7/98 - 5/27/98 24,931
- ----------------------------------------------------------
MUNICIPAL AND STATE OBLIGATIONS--1.6%
- ----------------------------------------------------------
Oakland-Alameda County
5.58% - 5.61%, 6/4/98 - 6/12/98 30,000
- ----------------------------------------------------------
(a)Texas, General Obligation
5.59%, 5/7/98 2,255
- ----------------------------------------------------------
32,255
</TABLE>
<PAGE> 4
Cash Account Trust 4
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
Investments at April 30, 1998
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
UTILITIES--.8%
- ----------------------------------------------------------
Brazos River Authority, Texas
5.58%, 6/15/98 $ 15,000
- ----------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS--80.0%
(average maturity: 78 days) 1,595,630
- ----------------------------------------------------------
BANK OBLIGATIONS
CERTIFICATES OF DEPOSIT AND BANK NOTES--
U.S. BANKS--12.1%
- ----------------------------------------------------------
(a)American Express Centurion Bank
5.64%, 5/5/98 10,000
- ----------------------------------------------------------
(a)AmSouth Bank of Alabama
5.55%, 5/26/98 9,998
- ----------------------------------------------------------
Bank of America N.A.
5.54%, 6/23/98 25,000
- ----------------------------------------------------------
(a)Bank One
5.70%, 5/5/98 19,995
- ----------------------------------------------------------
(a)Bankers Trust Co.
5.61%, 5/1/98 9,996
- ----------------------------------------------------------
(a)Comerica Bank
5.55%, 6/22/98 9,997
- ----------------------------------------------------------
(a)CoreStates Bank, N.A.
5.61%, 5/15/98 10,000
- ----------------------------------------------------------
(a)First National Bank of Boston
5.67%, 5/1/98 12,500
- ----------------------------------------------------------
(a)First USA Bank
5.99%, 6/29/98 10,022
- ----------------------------------------------------------
(a)Key Bank, N.A.
5.67%, 5/4/98 19,996
- ----------------------------------------------------------
MBNA America Bank, N.A.
5.58%, 5/5/98 20,000
- ----------------------------------------------------------
(a)Mellon Bank, N.A.
5.54%, 5/7/98 19,998
- ----------------------------------------------------------
Nationsbank, N.A.
5.55%, 7/16/98 25,000
- ----------------------------------------------------------
(a)Old Kent Bank
5.56%, 7/13/98 14,997
- ----------------------------------------------------------
(a)PNC Bank, N.A.
5.57%, 5/1/98 14,991
- ----------------------------------------------------------
U.S. Bancorp
5.55%, 7/22/98 10,000
- ----------------------------------------------------------
242,490
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
CERTIFICATES OF DEPOSIT--FOREIGN BANKS--4.3%
- ----------------------------------------------------------
(a)Banque Nationale de Paris
5.72%, 5/4/98 $ 25,000
- ----------------------------------------------------------
Deutsche Bank Financial, Inc.
5.55%, 7/20/98 25,000
- ----------------------------------------------------------
(a)National Bank of Canada
5.62%, 5/5/98 9,998
- ----------------------------------------------------------
Toronto-Dominion Bank
5.55%, 6/17/98 25,000
- ----------------------------------------------------------
84,998
- ----------------------------------------------------------
TOTAL BANK OBLIGATIONS--16.4%
(average maturity: 34 days) 327,488
- ----------------------------------------------------------
(c)REPURCHASE AGREEMENTS--3.8%
(Dated 4/98, collateralized by Federal Home
Loan
Mortgage Corp. and Federal National Mortgage
Association securities)
- ----------------------------------------------------------
Salomon Brothers, Inc.
(held at The Bank of New York)
5.52% - 5.53%, 5/12/98 - 7/15/98
(average maturity: 55 days) 75,000
- ----------------------------------------------------------
TOTAL INVESTMENTS--100.2%
(average maturity: 70 days) 1,998,118
- ----------------------------------------------------------
LIABILITIES, LESS CASH AND OTHER ASSETS--(.2)% (3,061)
- ----------------------------------------------------------
NET ASSETS--100% $1,995,057
- ----------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 5
Cash Account Trust 5
- --------------------------------------------------------------------------------
GOVERNMENT SECURITIES PORTFOLIO
Investments at April 30, 1998
(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
5.67%, 5/13/98 $ 3,899
- ----------------------------------------------------------
(a)Federal Farm Credit Banks
5.61%, 5/1/98 12,000
- ----------------------------------------------------------
(a)Federal Home Loan Bank
5.42% - 5.60%, 5/2/98 - 5/5/98 32,190
- ----------------------------------------------------------
(a)Federal Home Loan Mortgage Corp.
5.90%, 5/1/98 2,401
- ----------------------------------------------------------
(a)Federal National Mortgage Association
5.25% - 6.00%, 5/1/98 - 5/5/98 71,398
- ----------------------------------------------------------
(a)Overseas Private Investment Corp.
Omolon
5.57%, 5/5/98 23,111
- ----------------------------------------------------------
(a)Student Loan Marketing Association
5.36%, 5/5/98 123,747
- ----------------------------------------------------------
TOTAL SHORT-TERM NOTES--33.4%
(average maturity: 6 days) 268,746
- ----------------------------------------------------------
(c)REPURCHASE AGREEMENTS
(Dated 3/98 and 4/98, collateralized by Federal
Home Loan Mortgage Corp., Federal National
Mortgage Association and Government National
Mortgage Association securities)
- ----------------------------------------------------------
Bear, Stearns & Co., Inc.
5.52% - 5.56%, 5/6/98 - 6/10/98 56,000
- ----------------------------------------------------------
CS First Boston, Inc.
(held at The Chase Manhattan Bank)
5.54% - 5.57%, 5/1/98 - 6/24/98 38,000
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Chase Securities, Inc.
(held at The Chase Manhattan Bank)
5.51% - 5.58%, 5/13/98 - 5/27/98 $107,000
- ----------------------------------------------------------
Goldman, Sachs & Co.
(held at The Bank of New York)
5.54%, 5/1/98 35,000
- ----------------------------------------------------------
Lehman Government Securities, Inc.
(held at The Chase Manhattan Bank)
5.50% - 5.52%, 6/17/98 - 7/8/98 39,000
- ----------------------------------------------------------
Morgan Stanley & Co., Inc.
(held at The Bank of New York)
5.54% - 5.56%, 8/12/98 - 8/19/98 40,000
- ----------------------------------------------------------
Nomura Securities International, Inc.
(held at The Bank of New York)
5.52% - 5.55%, 5/20/98 - 6/17/98 116,000
- ----------------------------------------------------------
Salomon Brothers, Inc.
(held at The Bank of New York)
5.51% - 5.57%, 5/6/98 - 6/24/98 106,000
- ----------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS--66.7%
(average maturity: 34 days) 537,000
- ----------------------------------------------------------
TOTAL INVESTMENTS--100.1%
(average maturity: 24 days) 805,746
- ----------------------------------------------------------
LIABILITIES, LESS OTHER ASSETS--(.1)% (1,181)
- ----------------------------------------------------------
NET ASSETS--100% $804,565
- ----------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 6
Cash Account Trust 6
- --------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO
Investments at April 30, 1998
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(a)Variable Rate Demand Securities Value
<S> <C>
ARIZONA
- ---------------------------------------------------------
Apache County
Industrial Development Authority
4.20% $ 10,400
ARKANSAS
- ---------------------------------------------------------
Little River County
Solid Waste Disposal Revenue
5.00% 2,500
CALIFORNIA
- ---------------------------------------------------------
Economic Development Authority
4.65% 5,500
- ---------------------------------------------------------
Los Angeles
Harbor Improvement Corp.
4.40% 6,500
DISTRICT OF COLUMBIA
- ---------------------------------------------------------
American Public Health Association
4.10% 6,585
- ---------------------------------------------------------
General Obligation
4.35% 3,000
FLORIDA
- ---------------------------------------------------------
Alachua County
Health Facilities Authority
4.13% 2,300
- ---------------------------------------------------------
Dade County
Capital Asset Acquisition Bonds
4.65% 4,160
- ---------------------------------------------------------
Hillsborough County
Industrial Development Authority
4.40% 1,400
- ---------------------------------------------------------
Jacksonville
Industrial Development Revenue
3.90% 4,900
- ---------------------------------------------------------
Orange County
Health Facilities Authority
4.10% 8,000
GEORGIA
- ---------------------------------------------------------
Fulton County
Morehouse College
4.10% 2,000
- ---------------------------------------------------------
Gainesville - Riverside
Redevelopment Authority
4.25% 3,000
- ---------------------------------------------------------
Laurens County
Development Revenue
4.25% 4,000
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
ILLINOIS
- ---------------------------------------------------------
Development Finance Authority
Adventist Health System
4.20% $ 4,000
Pollution Control Revenue
4.15% 3,000
- ---------------------------------------------------------
Industrial Development Finance Authority
4.65% 2,000
- ---------------------------------------------------------
Student Assistance Commission
4.20% 1,000
- ---------------------------------------------------------
Elgin
Judson College Project
4.25% 3,730
- ---------------------------------------------------------
Rockford
Industrial Project Revenue
4.40% 2,300
- ---------------------------------------------------------
INDIANA
- ---------------------------------------------------------
Health Facility Financing Authority
4.15% 3,000
- ---------------------------------------------------------
Ossian
Economic Development Revenue
4.25% 1,000
KENTUCKY
- ---------------------------------------------------------
Bowling Green
Industrial Building Revenue
4.95% 2,400
- ---------------------------------------------------------
Mayfield
Multi-City Lease Revenue
4.15% 5,000
LOUISIANA
- ---------------------------------------------------------
Public Facilities Authority
4.65% 4,080
- ---------------------------------------------------------
Lafayette
Economic Development Authority
4.25% 2,500
MARYLAND
- ---------------------------------------------------------
Health and Higher Educational Facilities
Authority
4.15% 6,000
NORTH CAROLINA
- ---------------------------------------------------------
Medical Care Commission
Hospital Revenue
4.15% 5,000
- ---------------------------------------------------------
Winston-Salem
Multi-Family Housing
4.25% 3,000
</TABLE>
<PAGE> 7
Cash Account Trust 7
- --------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO
Investments at April 30, 1998
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
OHIO
- ---------------------------------------------------------
Butler County
Industrial Development Revenue
4.25% $ 2,800
- ---------------------------------------------------------
Hancock County
Multi-Family Housing
4.25% 6,150
- ---------------------------------------------------------
Medina County
Health Care Facilities Revenue
4.15% 4,500
OREGON
- ---------------------------------------------------------
Economic Development Revenue
4.30% 4,275
PENNSYLVANIA
- ---------------------------------------------------------
Delaware County
Redevelopment Authority
5.07% 5,000
- ---------------------------------------------------------
Emmaus
General Authority Revenue
4.20% 2,000
- ---------------------------------------------------------
Lehigh County
Industrial Development Authority
3.75% 5,000
- ---------------------------------------------------------
Schuylkill County
Industrial Development Authority
4.05% 5,000
TENNESSEE
- ---------------------------------------------------------
Clarksville
Public Building Authority
4.10% 11,100
- ---------------------------------------------------------
Maury County
Industrial Development Board
4.45% 2,000
TEXAS
- ---------------------------------------------------------
Brazos River Authority
Pollution Control Revenue
4.40% 6,100
- ---------------------------------------------------------
Harris County
Health Facilities Development Corp.
4.13% 5,400
- ---------------------------------------------------------
Tarrant County
Industrial Development Revenue
4.25% 5,000
VIRGINIA
- ---------------------------------------------------------
Loudoun County
Industrial Development Authority
4.25% 3,000
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
WASHINGTON
- ---------------------------------------------------------
Port Angeles
Industrial Development Corp.
4.95% $ 3,500
- ---------------------------------------------------------
Port of Vancouver
4.60% 2,000
WISCONSIN
- ---------------------------------------------------------
Eau Claire
Solid Waste Disposal Revenue
4.25% 1,800
- ---------------------------------------------------------
TOTAL VARIABLE RATE
DEMAND SECURITIES--50.8%
(average maturity: 7 days) 186,880
- ---------------------------------------------------------
OTHER SECURITIES
ALASKA
- ---------------------------------------------------------
Valdez
Marine Terminal Revenue
3.65%, 5/14/98 7,000
ARIZONA
- ---------------------------------------------------------
Salt River Project
Agricultural Improvement and Power District
3.70%, 5/11/98 6,000
DISTRICT OF COLUMBIA
- ---------------------------------------------------------
Student Loan Revenue
3.93%, 7/1/98 3,000
FLORIDA
- ---------------------------------------------------------
Jacksonville
Electric Authority
3.45% - 3.60%, 5/13/98 - 7/13/98 15,800
- ---------------------------------------------------------
Sunshine State
Governmental Financing Commission
3.60% - 3.65%, 5/8/98 - 8/12/98 9,000
GEORGIA
- ---------------------------------------------------------
Municipal Electric Authority
3.55% - 3.70%, 6/24/98 - 8/13/98 5,500
ILLINOIS
- ---------------------------------------------------------
Education Facilities Authority
3.60% - 3.65%, 7/21/98 - 7/22/98 6,009
- ---------------------------------------------------------
Health Facilities Authority
3.40%, 5/14/98 8,500
</TABLE>
<PAGE> 8
Cash Account Trust 8
- --------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO
Investments at April 30, 1998
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
INDIANA
- ---------------------------------------------------------
Jasper County
Pollution Control Revenue
3.60% - 3.65%, 7/14/98 - 7/21/98 $ 4,100
- ---------------------------------------------------------
Sullivan
Pollution Control Revenue
3.60%, 7/20/98 10,000
KENTUCKY
- ---------------------------------------------------------
Danville
Multi-City Lease Revenue
3.60%, 6/12/98 4,260
- ---------------------------------------------------------
Pendleton County
Multi-County Lease Revenue
3.50% - 3.60%, 5/13/98 - 6/12/98 5,335
MARYLAND
- ---------------------------------------------------------
Anne Arundel County
Port Facilities Revenue
3.55%, 8/13/98 4,700
MICHIGAN
- ---------------------------------------------------------
Strategic Fund Limited Obligation Revenue
3.80%, 8/14/98 2,000
MISSISSIPPI
- ---------------------------------------------------------
Claiborne County
Pollution Control Revenue
3.50%, 8/13/98 4,700
MISSOURI
- ---------------------------------------------------------
Health and Educational Facilities Authority
3.70%, 5/12/98 5,300
- ---------------------------------------------------------
Independence
Water Utility Revenue
3.60%, 5/13/98 4,000
NEBRASKA
- ---------------------------------------------------------
Omaha Public Power
3.60% - 3.65%, 7/14/98 - 7/21/98 7,300
NEW JERSEY
- ---------------------------------------------------------
Tax and Revenue Anticipation Notes
3.60%, 5/13/98 7,000
NEW YORK
- ---------------------------------------------------------
Power Authority
3.80%, 7/21/98 - 7/23/98 6,000
- ---------------------------------------------------------
New York City
Municipal Water Finance Authority
3.45% - 3.70%, 5/7/98 - 5/8/98 10,000
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
OKLAHOMA
- ---------------------------------------------------------
Oklahoma County
Industrial Authority
4.20%, 6/1/98 $ 4,840
PENNSYLVANIA
- ---------------------------------------------------------
Allegheny County
Industrial Development Authority
3.50%, 6/10/98 7,700
TEXAS
- ---------------------------------------------------------
Tax Anticipation Notes
3.69%, 8/31/98 3,010
- ---------------------------------------------------------
Austin
Combined Utility Systems
3.55%, 6/12/98 4,000
- ---------------------------------------------------------
Brazoria County
Brazos River Harbor Navigation District
3.60%, 6/11/98 5,350
- ---------------------------------------------------------
Dallas
Area Rapid Transit
3.60% - 3.65%, 5/12/98 - 7/21/98 10,000
- ---------------------------------------------------------
Houston
Water and Sewer System
3.40%, 5/13/98 6,000
VIRGINIA
- ---------------------------------------------------------
Louisa County
Industrial Development Authority
3.55%, 6/12/98 1,000
- ---------------------------------------------------------
TOTAL OTHER SECURITIES--48.2%
(average maturity: 47 days) 177,404
- ---------------------------------------------------------
TOTAL INVESTMENTS--99.0%
(average maturity: 27 days) 364,284
- ---------------------------------------------------------
CASH AND OTHER ASSETS,
LESS LIABILITIES--1.0% 3,857
- ---------------------------------------------------------
NET ASSETS--100% $368,141
- ---------------------------------------------------------
</TABLE>
<PAGE> 9
Cash Account Trust 9
- --------------------------------------------------------------------------------
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,
1998. 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, 1998, the aggregate value of illiquid
securities was $26,372,000 in the Money Market Portfolio, which represented 1.3%
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> 10
Cash Account Trust 10
- --------------------------------------------------------------------------------
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 Cash Account Trust (comprising, respectively,
the Money Market, Government Securities and Tax-Exempt Portfolios), as of April
30, 1998, 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 1994. 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, 1998, 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 respective Portfolios constituting Cash Account Trust at April 30, 1998,
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 1994, in conformity with
generally accepted accounting principles.
ERNST & YOUNG LLP
Chicago, Illinois
June 16, 1998
<PAGE> 11
Cash Account Trust 11
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1998
(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 $1,923,118 268,746 364,284
- -------------------------------------------------------------------------------------------------------------
Repurchase agreements 75,000 537,000 --
- -------------------------------------------------------------------------------------------------------------
Cash 2,939 -- 1,546
- -------------------------------------------------------------------------------------------------------------
Receivable for:
Interest 3,341 4,249 1,695
- -------------------------------------------------------------------------------------------------------------
Securities sold -- -- 2,500
- -------------------------------------------------------------------------------------------------------------
Fund shares sold 22 6 11
- -------------------------------------------------------------------------------------------------------------
Total assets 2,004,420 810,001 370,036
- -------------------------------------------------------------------------------------------------------------
LIABILITIES AND NET ASSETS
- -------------------------------------------------------------------------------------------------------------
Cash overdraft -- 2,711 --
- -------------------------------------------------------------------------------------------------------------
Payable for:
Dividends 2,266 922 291
- -------------------------------------------------------------------------------------------------------------
Fund shares redeemed 5,680 1,015 1,094
- -------------------------------------------------------------------------------------------------------------
Management fee 27 -- 49
- -------------------------------------------------------------------------------------------------------------
Distribution services fee 288 375 160
- -------------------------------------------------------------------------------------------------------------
Custodian and transfer agent fees and related expenses 1,044 300 170
- -------------------------------------------------------------------------------------------------------------
Trustees' fees and other 58 113 131
- -------------------------------------------------------------------------------------------------------------
Total liabilities 9,363 5,436 1,895
- -------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $1,995,057 804,565 368,141
- -------------------------------------------------------------------------------------------------------------
THE PRICING OF SHARES
- -------------------------------------------------------------------------------------------------------------
Shares outstanding 1,995,057 804,565 368,141
- -------------------------------------------------------------------------------------------------------------
Net asset value and redemption price per share $1.00 1.00 1.00
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE> 12
Cash Account Trust 12
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
Year ended April 30, 1998
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY GOVERNMENT
MARKET SECURITIES TAX-EXEMPT
PORTFOLIO PORTFOLIO PORTFOLIO
---------------------------------------------------------
<S> <C> <C> <C>
INTEREST INCOME $74,993 39,199 12,670
- -----------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fee 2,463 1,301 630
- -----------------------------------------------------------------------------------------------------------------------
Distribution services fee 7,871 4,158 1,678
- -----------------------------------------------------------------------------------------------------------------------
Custodian and transfer agent fees and related expenses 3,764 1,336 729
- -----------------------------------------------------------------------------------------------------------------------
Registration costs 137 195 80
- -----------------------------------------------------------------------------------------------------------------------
Professional fees 26 23 10
- -----------------------------------------------------------------------------------------------------------------------
Reports to shareholders 98 39 15
- -----------------------------------------------------------------------------------------------------------------------
Trustees' fees and other 30 25 15
- -----------------------------------------------------------------------------------------------------------------------
Total expenses before expense waiver 14,389 7,077 3,157
- -----------------------------------------------------------------------------------------------------------------------
Less expenses waived by the investment manager (1,253) (281) (100)
- -----------------------------------------------------------------------------------------------------------------------
Total expenses absorbed by the Portfolio 13,136 6,796 3,057
- -----------------------------------------------------------------------------------------------------------------------
Net investment income $61,857 32,403 9,613
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
Years ended April 30, 1998 and 1997
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET GOVERNMENT TAX-EXEMPT
-------PORTFOLIO-------- -SECURITIES-PORTFOLIO- ------PORTFOLIO------
1998 1997 1998 1997 1998 1997
------------------------ ---------------------- ---------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS, DIVIDENDS AND CAPITAL SHARE ACTIVITY
Net investment income $ 61,857 24,710 32,403 16,267 9,613 2,809
- -----------------------------------------------------------------------------------------------------------------------------
Net realized loss -- (1,416) -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Change in unrealized depreciation -- 1,416 -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment
income (61,857) (24,710) (32,403) (16,267) (9,613) (2,809)
- -----------------------------------------------------------------------------------------------------------------------------
Capital share transactions (dollar amounts and
number of shares are the same):
Shares sold 8,930,862 2,030,788 2,218,979 1,283,520 1,715,561 446,705
- -----------------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of dividends 60,295 24,932 31,996 16,766 9,465 2,925
- -----------------------------------------------------------------------------------------------------------------------------
8,991,157 2,055,720 2,250,975 1,300,286 1,725,026 449,630
Shares redeemed (7,581,047) (1,925,798) (1,990,911) (945,704) (1,577,676) (295,820)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase from capital share transactions and
total increase in net assets 1,410,110 129,922 260,064 354,582 147,350 153,810
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of year 584,947 455,025 544,501 189,919 220,791 66,981
- -----------------------------------------------------------------------------------------------------------------------------
End of year $ 1,995,057 584,947 804,565 544,501 368,141 220,791
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 13
Cash Account Trust 13
- --------------------------------------------------------------------------------
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 Portfolio, at 11:00 a.m., 1:00 p.m.,
3:00 p.m. and 8:00 p.m. Chicago time for the Government Securities Portfolio and
at 11:00 a.m. and 3:00 p.m. Chicago time for the Tax-Exempt Portfolio. Each
Portfolio declares a daily dividend, equal to its net investment income for that
day, payable monthly. Net investment income consists of all interest income plus
(minus) all realized gains (losses) on portfolio securities, minus all expenses
of the Portfolio.
FEDERAL INCOME TAXES
Each Portfolio has complied with the special provisions of the Internal Revenue
Code available to investment companies and therefore no federal income tax
provision is required.
3. TRANSACTIONS WITH AFFILIATES
INVESTMENT MANAGER COMBINATION
Effective December 31, 1997, Zurich Insurance Company, the parent of Zurich
Kemper Investments, Inc. (ZKI), acquired a majority interest in Scudder, Stevens
& Clark, Inc. (Scudder), another major investment manager. As a result of this
transaction, the operations of ZKI were combined with Scudder to form a new
global investment organization named Scudder Kemper Investments, Inc. (Scudder
Kemper). The transaction resulted in the termination of the Fund's investment
management agreement with ZKI, however, a new investment management agreement
between the Fund and Scudder Kemper was approved by the Fund's Board
<PAGE> 14
Cash Account Trust 14
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
of Trustees and by the Fund's shareholders. The new management agreement, which
was effective December 31, 1997, is the same in all material respects as the
previous management agreement, except that Scudder Kemper is the new investment
adviser to the Fund. In addition, the names of the Fund's principal underwriter
and shareholder service agent were changed to Kemper Distributors, Inc. (KDI)
and Kemper Service Company (KSvC), respectively.
MANAGEMENT AGREEMENT
The Fund has a management agreement with Scudder Kemper 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, 1998, the Fund incurred management fees of
$4,133,000 after an expense waiver by Scudder Kemper.
DISTRIBUTION AGREEMENT
The Fund also has an administration, shareholder services and distribution
agreement with KDI. For its services as primary distributor, the Fund pays KDI
an annual fee of .60% of average daily net assets for the Money Market and
Government Securities Portfolios and .50% of average daily net assets for the
Tax-Exempt Portfolio. For the year ended April 30, 1998, the Fund incurred
distribution fees of $12,334,000 after an expense waiver by Scudder Kemper. KDI
has related service agreements with various firms to provide cash management and
other services for Fund shareholders. Under these agreements, KDI pays such
firms based on the average daily net assets of those accounts 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, 1998, KDI paid fees of $13,739,000 to various firms pursuant to the related
service agreements.
SHAREHOLDER SERVICES AGREEMENT
Pursuant to a services agreement with the Fund's transfer agent, KSvC is the
shareholder service agent of the Fund. Under the agreement, KSvC received
shareholder services fees of $4,230,000 for the year ended April 30, 1998.
OFFICERS AND TRUSTEES
Certain officers or trustees of the Fund are also officers or directors of
Scudder Kemper. During the year ended April 30, 1998, the Fund made no payments
to its officers and incurred trustees' fees of $31,000 to independent trustees.
EXPENSE ABSORPTION
For the period from May 1, 1997 through May 31, 1997, the investment manager
agreed to limit the Portfolios' operating expenses to the following percentages
of average daily net assets: Money Market Portfolio (1.00%), Government
Securities Portfolio (.95%) and Tax-Exempt Portfolio (.85%). Beginning in June
1997, the expense limits were increased to the following percentages: Government
Securities Portfolio (1.00%) and Tax-Exempt Portfolio (.95%). For the year ended
April 30, 1998, Scudder Kemper absorbed expenses of $1,634,000.
<PAGE> 15
Cash Account Trust 15
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year ended April 30,
----------------------------------------------------------
MONEY MARKET PORTFOLIO 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------------------------------------
<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 .05 .05 .05 .04 .02
- -----------------------------------------------------------------------------------------------------------------------
Less dividends declared .05 .05 .05 .04 .02
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $1.00 1.00 1.00 1.00 1.00
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 4.85% 4.60 4.96 4.38 2.42
- -----------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
Expenses after expense waiver 1.00% 1.00 1.00 .99 .93
- -----------------------------------------------------------------------------------------------------------------------
Net investment income 4.71% 4.51 4.83 4.54 2.48
- -----------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS:
Expenses 1.10% 1.03 1.05 1.05 1.20
- -----------------------------------------------------------------------------------------------------------------------
Net investment income 4.61% 4.48 4.78 4.48 2.21
- -----------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of year (in thousands) $1,995,057 584,947 455,025 378,551 156,153
- -----------------------------------------------------------------------------------------------------------------------
</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 1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------------
<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 .05 .04 .02
- -------------------------------------------------------------------------------------------------------------------
Less dividends declared .05 .05 .05 .04 .02
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $1.00 1.00 1.00 1.00 1.00
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 4.78% 4.69 5.01 4.37 2.49
- -------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
Expenses after expense waiver .98% .92 .90 .90 .84
- -------------------------------------------------------------------------------------------------------------------
Net investment income 4.68% 4.59 4.88 4.66 2.47
- -------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS:
Expenses 1.02% .99 1.06 1.05 1.22
- -------------------------------------------------------------------------------------------------------------------
Net investment income 4.64% 4.52 4.72 4.51 2.09
- -------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of year (in thousands) $804,565 544,501 189,919 138,020 30,829
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 16
Cash Account Trust 16
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year ended April 30,
-------------------------------------------------
TAX-EXEMPT PORTFOLIO 1998 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------------
<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 .03 .02
- ---------------------------------------------------------------------------------------------------------------
Less dividends declared .03 .03 .03 .03 .02
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of year $1.00 1.00 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------
TOTAL RETURN 2.92% 2.82 3.16 2.80 1.84
- ---------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
Expenses after expense waiver .91% .81 .78 .76 .74
- ---------------------------------------------------------------------------------------------------------------
Net investment income 2.87% 2.78 3.10 3.00 1.82
- ---------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS:
Expenses .94% .96 .98 .93 1.20
- ---------------------------------------------------------------------------------------------------------------
Net investment income 2.84% 2.63 2.90 2.83 1.36
- ---------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of year (in thousands) $368,141 220,791 66,981 67,748 16,991
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE FOR ALL PORTFOLIOS:
Scudder Kemper 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 1998 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> 17
Cash Account Trust 17
- --------------------------------------------------------------------------------
SPECIAL SHAREHOLDERS' MEETING
On December 3, 1997, a special shareholders' meeting was held and adjourned as
necessary. Cash Account Trust shareholders were asked to vote on five separate
issues: election of nine members to the Board of Trustees, ratification of Ernst
& Young LLP as independent auditors, approval of new investment management
agreement with Scudder Kemper Investments, Inc., approval of new rule 12b-1
distribution plan with Zurich Kemper Distributors, Inc., and approval of changes
in investment policies. The results are as follows:
ITEM 1: ELECTION OF THE BOARD OF TRUSTEES.
<TABLE>
<CAPTION>
AFFIRMATIVE WITHHELD
- ----------------------------------------------------
<S> <C> <C>
CASH ACCOUNT TRUST
DAVID W. BELIN 1,432,231,962 15,343,337
LEWIS A. BURNHAM 1,433,039,999 14,535,300
DONALD L. DUNAWAY 1,433,147,541 14,427,757
ROBERT B. HOFFMAN 1,433,271,800 14,303,498
DONALD R. JONES 1,432,821,471 14,753,827
SHIRLEY D. PETERSON 1,432,999,457 14,575,841
DANIEL PIERCE 1,433,047,792 14,527,506
WILLIAM P. SOMMERS 1,433,338,660 14,236,638
EDMOND D. VILLANI 1,433,076,252 14,499,047
</TABLE>
ITEM 2: SELECTION OF ERNST & YOUNG LLP AS INDEPENDENT AUDITORS.
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN
- --------------------------------------
<S> <C> <C>
1,430,594,128 6,633,518 10,347,652
</TABLE>
ITEM 3: NEW INVESTMENT MANAGEMENT AGREEMENT.
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN
- ------------------------------------
<S> <C> <C>
MONEY MARKET PORTFOLIO
593,221,921 6,983,642 8,501,418
GOVERNMENT SECURITIES PORTFOLIO
579,526,650 5,707,549 6,736,338
TAX-EXEMPT PORTFOLIO
242,132,369 1,954,693 2,855,718
</TABLE>
ITEM 4: NEW RULE 12B-1 DISTRIBUTION PLAN.
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN
- ------------------------------------
<S> <C> <C>
MONEY MARKET PORTFOLIO
585,079,957 12,811,496 10,770,528
GOVERNMENT SECURITIES PORTFOLIO
572,103,136 10,633,491 9,233,911
TAX-EXEMPT PORTFOLIO
240,141,819 3,106,309 3,694,652
</TABLE>
ITEM 5: APPROVAL OF CHANGES IN INVESTMENT POLICIES.
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN
- ------------------------------------
<S> <C> <C>
MONEY MARKET PORTFOLIO
209,238,761 11,408,221 12,596,211
GOVERNMENT SECURITIES PORTFOLIO
191,001,287 10,229,001 10,336,837
TAX-EXEMPT PORTFOLIO
88,377,580 2,587,263 3,639,125
</TABLE>
<PAGE> 18
CASH ACCOUNT
TRUST
ANNUAL
REPORT
APRIL 30, 1998
Principal Underwriter:
Kemper Distributors, Inc.
222 South Riverside Plaza, Chicago, IL 60606
www.kemper.com
This report is not to be distributed unless preceded or
accompanied by a prospectus.
CAT-2 1048240 6/98 (LOGO)
Printed on recycled paper.
