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April 30, 1999
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Farmers
Money Market Portfolio:
Retail Shares
Annual Report
A mutual fund seeking to provide maximum current income to the extent consistent
with stability of capital. The Portfolio invests exclusively in high quality
money market instruments.
[LOGO]
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Retail Money Market Shares
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Date of Inception: 1/22/99 Total Net Assets as of 4/30/99: $272 thousand
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Table of Contents
Letter to the Shareholders ................................................ 4
Investment Portfolio ...................................................... 6
Financial Statements ...................................................... 11
Financial Highlights ...................................................... 14
Notes to Financial Statements ............................................. 15
Report of Independent Accountants ......................................... 18
Tax Information ........................................................... 19
Shareholder Meeting Results ............................................... 20
Officers and Trustees ..................................................... 21
3
<PAGE>
Letter to the Shareholders
Dear Shareholders,
We appreciate your decision to invest in the Money Market Portfolio: Retail
Shares. The following pages include the annual report for all share classes of
the Portfolio, and the financial highlights for the Retail Shares class only,
all for the period ending April 30, 1999.
During the past year, the portfolio registered solid performance and
achieved its objective of providing maximum current income to the extent
consistent with the stability of capital.
Economic Review and Outlook
During the period, the U.S. economy continued to post strong growth, as low
unemployment combined with low inflation boosted consumer confidence. In
addition, the overseas economic difficulties that caused the U.S. Federal
Reserve to cut interest rates three times in late 1998 appear to have subsided.
Europe, Asia, and Brazil showed signs of rebounding, reducing the fears that the
slowdown overseas would spread to our shores. These factors helped build the
expectation that Gross Domestic Product growth will remain strong in the months
ahead. Even with this good news, the Federal Reserve has so far remained in a
"wait and see" mode with regard to tightening interest rates, although there
have been some recent indications that this approach may change.
In light of these developments, we intend to take a relatively neutral
approach to the portfolio's average maturity. However, we may look for
attractive opportunities to extend maturities and enhance performance, since we
do not expect significant upward pressure on interest rates. Going forward, we
believe the Portfolio should continue to offer attractive yield potential and a
high degree of stability.
Thank you again for your investment. We look forward to serving your
investment needs for years to come.
/s/Frank J. Rachwalski
Frank J. Rachwalski
Vice President and Lead Portfolio Manager
June 15, 1999
Frank J. Rachwalski is a Managing Director of Scudder Kemper
Investments, Inc. and is Vice President and Lead Portfolio Manager of
Cash Account Trust. Mr. Rachwalski holds B.B.A. and M.B.A. degrees from
Loyola University.
4
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Portfolio Results
For the period from inception on January 22, 1999 to April 30, 1999
Net Annualized Yield
--------------------
Retail Money Market Shares 4.38%
Notes
The net yield is the sum of the daily dividend rates for the period, then
annualized. Yields are historical, may fluctuate, and do not guarantee future
performance.
Like all money market funds, an investment in these funds is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although the Portfolio seeks to preserve your investment at $1.00 per
share, it is possible to lose money.
The views expressed in this report reflect those of the portfolio manager only
through the end of the period stated above. The manager's views are subject to
change at any time, based on market and other conditions
5
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Investment Portfolio as of April 30, 1999
Value ($)
(in thousands)
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Corporate Obligations 70.5%
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Banking 5.7%
Bank of Nova Scotia, 4.91%, 5/3/99 ................................... 50,000
Banque Nationale de Paris, 4.91%, 6/22/99 ............................ 9,929
Dresdner US Finance, Inc., 4.87%-4.88%, 6/11/99-6/18/99 .............. 38,762
Merita N.A., Inc., 4.87%-4.89%, 7/13/99-7/19/99 ...................... 34,648
Nordebanken N.A., Inc., 4.90%, 5/17/99 ............................... 24,946
Wells Fargo & Co., 4.88%, 6/29/99 (a) ................................ 31,979
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190,264
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Business Loans 22.3%
Asset Portfolio Funding Corp., 4.89%, 5/12/99 ........................ 24,963
Asset Securitization Cooperative Corp., 4.90%, 5/14/99-6/1/99 ........ 39,893
Clipper Receivables Corp., 4.87%, 6/16/99 ............................ 39,238
Corporate Asset Funding, 4.86%, 7/8/99 ............................... 30,322
Corporate Receivables Corp., 4.86%-4.90%, 5/17/99-6/22/99 ............ 59,737
Delaware Funding Corp., 4.81%, 5/21/99 ............................... 34,907
Fairway Finance Corp., 4.97%, 5/17/99 ................................ 19,956
Falcon Asset Securitization Corp., 4.86%-4.91%, 5/14/99-6/14/99 ...... 44,817
International Securitization Corp., 4.85%, 6/24/99 ................... 19,856
Intrepid Funding Corp., 4.85%-4.93%, 5/20/99-9/20/99 ................. 34,745
Lexington Parker Capital Co., 4.86%, 6/14/99 ......................... 39,765
Mont Blanc Capital Corp., 4.85%, 6/7/99 .............................. 24,876
Monte Rosa Capital Corp., 4.90%-4.91%, 5/7/99-5/27/99 ................ 49,865
Old Line Funding Corp., 4.88%, 5/17/99 ............................... 23,948
Preferred Receivables Funding Corp., 4.84%-4.87%, 5/17/99-6/9/99...... 41,386
Quincy Capital Corp., 4.90%, 5/7/99 .................................. 24,980
Sheffield Receivables Corp., 4.86%, 5/26/99 .......................... 24,916
Special Purpose Accounts Receivable Cooperative Corp., 4.91%, 5/13/99. 34,943
Thunder Bay Funding, Inc., 4.88%, 7/1/99 ............................. 19,836
Variable Funding Capital Corp., 4.86%-4.88%, 5/6/99-5/12/99 .......... 34,968
WCP Funding, Inc., 4.88%-4.90%, 5/19/99-7/12/99 ...................... 53,957
Wood Street Funding Corp. 4.89%, 7/23/99 ............................. 24,419
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746,293
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6
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Value ($)
(in thousands)
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Capital and Equipment Lending 3.6%
Ace Overseas Corp., 4.89%, 5/12/99 .................................. 19,970
American Honda Finance Corp., 4.89%, 5/26/99 (a) .................... 10,000
Caterpillar Financial Services Corp., 5.00%, 5/11/99-6/10/99 (a)..... 25,003
Fountain Square Commercial Funding Corp., 4.95%, 5/3/99 ............. 35,985
IBM Credit Corp., 5.13%, 3/22/00 .................................... 9,996
John Deere Capital Corp. 4.90%, 5/3/99 (a) .......................... 19,991
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120,945
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Captive Business Lending 5.6%
British Gas Capital, Inc., 4.84%, 5/19/99 ........................... 19,952
California Pollution Control Financing Authority, 4.85%, 5/12/99..... 20,000
Capital One Funding Corp., 4.89%, 5/6/99 (a) (b) .................... 8,135
Duke Capital Corp., 4.85%, 6/9/99 ................................... 29,843
Pemex Capital, Inc., 4.91%, 6/21/99-7/7/99 .......................... 29,772
Petrobras Finance Corp., 4.91%, 6/30/99 ............................. 29,758
Prudential Funding Corp., 4.90%, 5/18/99 ............................ 49,886
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187,346
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Consumer Lending 4.2%
Avco Financial Services, Inc., 5.04%, 5/17/99 (a) ................... 10,000
Countrywide Home Loans, 4.97%-5.22%, 7/25/99-7/26/99 (a) ............ 22,000
GMAC Mortgage Corporation of Pennsylvania, 5.01%, 5/4/99 (b) ........ 29,988
Household International, Inc., 4.87%, 6/2/99 ........................ 14,936
J.C. Penney Funding Corp., 5.01%, 6/14/99 ........................... 24,849
Transamerica Finance Corp., 4.91%, 5/24/99 .......................... 24,923
Transamerica Finance Corp., 5.25%, 7/22/99 (a) ...................... 15,000
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141,696
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Consumer Products and Services 2.6%
Coca-Cola Enterprises, Inc., 4.87%-4.91%, 5/14/99-6/18/99 ........... 32,858
Eastman Kodak Co., 4.89%, 5/20/99 ................................... 24,936
Fortune Brands, Inc., 4.84%, 5/3/99 ................................. 27,793
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85,587
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Diversified Finance 12.2%
Alpine Securitization Corp., 4.86%, 6/10/99 ......................... 29,839
Amsterdam Funding Corp., 4.91%, 5/21/99 ............................. 9,973
Barton Capital Corp., 4.84%-4.89%, 6/4/99-6/7/99 .................... 54,448
CIT Group Holdings, Inc., 4.84%, 5/3/99 (a) ......................... 14,998
CIT Group Holdings, Inc., 4.85%, 6/4/99 ............................. 24,887
7
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Value ($)
(in thousands)
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CXC, Inc., 4.87%-4.88%, 5/18/99 ..................................... 24,942
Enterprise Capital Funding Corp., 4.87%, 6/15/99 .................... 14,910
Eureka Securitization, Inc., 4.88%, 5/28/99 ......................... 19,927
General Electric Capital Corp., 4.87%, 5/10/99 ...................... 14,982
General Electric Capital Corp., 4.95%-4.98%, 6/8/99-7/12/99 (a) ..... 40,000
Heller Financial, Inc., 5.02%, 5/27/99 .............................. 9,964
Twin Tower, Inc., 4.87%-4.92%, 5/11/99-7/21/99 ...................... 59,653
Windmill Funding Corp., 4.85%-4.90%, 5/13/99-6/15/99 ................ 64,688
Xerox Credit Corp., 4.85%, 5/11/99 .................................. 24,967
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408,178
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Financial Services 6.9%
Bear Stearns Cos., Inc., 4.90%-5.32%, 5/8/99-5/19/99 (a) ............ 20,000
CS First Boston, Inc., 4.86%, 5/3/99 (a) ............................ 22,000
Goldman Sachs Group, L.P., 4.95%, 6/8/99 (a) ........................ 25,000
Lehman Brothers Holdings, Inc., 5.06%, 6/21/99 ...................... 29,788
Merrill Lynch & Co., Inc., 4.91%, 5/21/99 (a) ....................... 20,000
Salomon Smith Barney Holdings, Inc., 4.84%, 5/3/99-5/19/99 .......... 54,921
Sigma Finance, 4.88%, 5/28/99-6/15/99 ............................... 60,000
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231,709
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Health Care 1.8%
American Home Products Corp., 4.89%, 5/4/99 ......................... 24,990
Baxter International, Inc., 4.84%-4.88%, 5/18/99-6/22/99 ............ 34,327
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59,317
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Manufacturing/Industrial 1.1%
Michelin Tire Corp., 5.20%, 5/3/99 .................................. 19,994
Xerox Capital Europe, PLC, 4.89%, 5/22/99 (a) ....................... 14,998
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34,992
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Municipal and State Obligations 1.2%
Oakland -- Alameda County Coliseum, California, 4.90%-4.91%,
5/3/99-5/7/99 .................................................... 37,350
Texas, General Obligation, 4.86%, 5/7/99 (a) ........................ 2,255
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39,605
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Utilities 2.5%
AES Hawaii, Inc., 4.88%, 5/7/99 ..................................... 24,980
Brazos River Authority, Texas, 4.91%-4.95%, 5/14/99-6/10/99 ......... 30,000
GTE Corp., 4.87%, 6/11/99 ........................................... 29,835
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84,815
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8
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Value ($)
(in thousands)
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Foreign Government 0.8%
Export Development Corp., 4.84%, 5/7/99 ........................... 24,980
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Total Corporate Obligations (average maturity: 32 days) 2,355,727
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Bank Obligations 21.3%
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Certificates of Deposit and Bank Notes -- U.S. Banks 9.7%
American Express Centurian Bank, 4.89%, 5/24/99 (a) ............... 10,000
American Express Co., 4.92%, 5/17/99-5/18/99 (a) .................. 20,000
Bankers Trust Co., 4.83%, 5/3/99 (a) .............................. 15,000
Comerica Bank, 4.90%, 5/17/99 (a) ................................. 24,990
First Bank Corp., 4.99%, 5/17/99 (a) .............................. 15,011
First National Bank of Boston, 4.86%-5.00%, 5/3/99-7/7/99 (a) ..... 30,000
First Union National Bank, 5.02%, 5/17/99 (a) ..................... 27,000
Harris Trust and Savings Bank, 4.91%, 5/3/99 (a) .................. 44,984
Huntington National Bank, 4.96%, 5/5/99 (a) ....................... 24,996
J.P. Morgan & Co., Inc., 4.83%, 5/7/99 (a) ........................ 16,998
Key Bank, N.A., 4.89%, 5/29/99 (a) ................................ 19,996
NationsBank, N.A., 4.88%, 6/4/99 .................................. 25,000
Northern Trust Corp., 4.83%, 5/10/99 (a) .......................... 16,996
PNC Bank, N.A., 5.02%, 5/4/99 (a) ................................. 20,000
U.S. Bank, N.A., 4.91%, 5/20/99 (a) ............................... 14,998
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325,969
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Certificates of Deposit -- Foreign Banks 11.6%
Abbey National, N.A., 4.85%, 7/20/99 (a) .......................... 24,994
Bank of Montreal, 4.89%, 6/30/99 (a) .............................. 34,983
Bayerische Hypo-Und Vereinsbank AG, 4.85%, 5/19/99 (a) ............ 89,957
Bayerische Landesbank, 4.82%, 5/10/99 (a) ......................... 69,954
Commerzbank A.G., 4.91%, 7/6/99 (a) ............................... 34,987
Den Danske Bank, 4.85%, 5/17/99 (a) ............................... 24,989
Deutsche Bank Financial Inc., 4.89%, 5/3/99 (a) ................... 64,959
Royal Bank of Canada, 4.80%-4.89%, 5/3/99-7/1/99 (a) .............. 29,988
Svenska Handelsbanken, 4.94%, 5/17/99 (a) ......................... 12,000
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386,811
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Total Bank Obligations (average maturity: 22 days) ................ 712,780
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9
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Value ($)
(in thousands)
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Repurchase Agreements 5.7% (c)
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Dated 3/99-4/99, collateralized by Federal Home Loan Mortgage Corporation
and Federal National Mortgage Association securities:
Donaldson, Lufkin & Jenrette, Inc. (held at Chemical Bank),
4.94%, 5/3/99................................................. 40,000
Goldman Sachs Group, L.P. (held at The Bank of New York),
4.80%, 5/5/99-5/6/99.......................................... 50,000
Salomon Brothers, Inc. (held at The Bank of New York),
4.82%-4.88%, 5/10/99-5/14/99.................................. 100,000
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Total Repurchase Agreements (average maturity: 8 days) 190,000
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U.S. Government Agency Notes 2.1%
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Federal Home Loan Bank, 4.80%, 5/3/99 (a)............................ 5,997
Federal Home Loan Mortgage Corp., 4.84%-4.85%, 5/14/99-5/18/99....... 29,940
Federal National Mortgage Association, 4.58%, 5/4/99 (a)............. 4,999
Student Loan Marketing Association, 4.86%, 5/4/99 (a)................ 29,996
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Total U.S. Government Agency Notes (average maturity: 9 days) 70,932
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Total Investments -- 99.6% (average maturity: 28 days)............... 3,329,439
Cash and Other Assets, Less Liabilities -- 0.4%...................... 14,421
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Net Assets -- 100% 3,343,860
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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, 1999. The dates shown represent the demand date or the next interest
rate change date.
(b) Illiquid securities. At April 30, 1999, the aggregate value of illiquid
securities was $38,123,000 which represented 1.1% of net assets.
(c) Repurchase agreements are fully collateralized by U.S. Government
securities or U.S. Government agency securities. All collateral is held at
the fund's custodian bank, State Street Bank, or at subcustodian banks, as
indicated. The collateral is monitored daily by the portfolio so that its
market value exceeds the carrying value of the repurchase agreement.
See accompanying Notes to Financial Statements.
10
<PAGE>
Financial Statements
Statement of Assets and Liabilities
April 30, 1999 (in thousands)
Assets
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Investments, at amortized cost:
Short-term securities ................................. $3,139,439
Repurchase agreements ................................. 190,000
Cash ..................................................... 32,323
Receivable for:
Interest .............................................. 6,129
Fund shares sold ...................................... 55
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Total assets ............................................. 3,367,946
Liabilities and Net Assets
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Payable for:
Dividends ............................................. 3,173
Fund shares redeemed .................................. 16,913
Management fee ........................................ 845
Distribution services fee ............................. 1,575
Custodian and transfer agent fees and related expenses 686
Trustees' fees and other .............................. 894
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Total liabilities ........................................ 24,086
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Net assets applicable to shares outstanding $3,343,860
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The Pricing of Shares
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Institutional Shares:
Net assets applicable to shares outstanding ........... $ 102
Shares outstanding .................................... 102
----------
Net asset value and redemption price per share ........... $ 1.00
----------
Premier Shares:
Net assets applicable to shares outstanding ........... $ 101
Shares outstanding .................................... 101
----------
Net asset value and redemption price per share ........... $ 1.00
----------
Retail Shares:
Net assets applicable to shares outstanding ........... $ 272
Shares outstanding .................................... 272
----------
Net asset value and redemption price per share ........... $ 1.00
----------
Service Shares:
Net assets applicable to shares outstanding ........... $3,343,385
Shares outstanding .................................... 3,343,385
----------
Net asset value and redemption price per share ........... $ 1.00
----------
See accompanying Notes to Financial Statements.
11
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Financial Statements
Statement of Operations
Year ended April 30, 1999 (in thousands)
Investment Income
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Interest income ................................................ $ 121,366
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Expenses:
Management fee ................................................. 4,086
Distribution services fee ...................................... 13,640
Custodian and transfer agent fees and related expenses ......... 6,230
Registration costs ............................................. 510
Professional fees .............................................. 41
Reports to shareholders ........................................ 480
Trustees' fees and other ....................................... 31
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Total expenses before expense waiver ........................... 25,018
Less expenses waived by the investment manager ................. (2,233)
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Total expenses absorbed by the portfolio ....................... 22,785
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Net investment income $ 98,581
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See accompanying Notes to Financial Statements.
12
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Financial Statements
Statement of Changes in Net Assets
Years ended April 30, 1999 and 1998 (in thousands)
Operations, dividends and capital share activity 1999 1998
- --------------------------------------------------------------------------------
Net investment income ................. $ 98,581 $ 61,857
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Dividends to shareholders from net
investment income .................. (98,581) (61,857)
------------ ------------
Capital share transactions (dollar amounts and
number of shares are the same)
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Institutional Shares (a):
Shares sold ........................... 101 --
Shares issued in reinvestment of ...... 1 --
dividends
------------ ------------
102 --
Shares redeemed ....................... -- --
------------ ------------
Net increase from capital share
transactions........................ 102 --
------------ ------------
Premier Shares (a):
Shares sold ........................... 100 --
Shares issued in reinvestment of
dividends........................... 1 --
------------ ------------
101 --
Shares redeemed ....................... -- --
------------ ------------
Net increase from capital share
transactions ....................... 101 --
------------ ------------
Retail Shares (a):
Shares sold ........................... 270 --
Shares issued in reinvestment of
dividends .......................... 3 --
------------ ------------
273 --
Shares redeemed ....................... (1) --
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Net increase from capital share
transactions........................ 272 --
------------ ------------
Service Shares:
Shares sold ........................... 21,381,309 8,930,862
Shares issued in reinvestment of
dividends........................... 96,946 60,295
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21,478,255 8,991,157
Shares redeemed ....................... (20,129,927) (7,581,047)
------------ ------------
Net increase from capital share ....... 1,348,328 1,410,110
transactions
------------ ------------
Total increase in net assets .......... 1,348,803 1,410,110
------------ ------------
Net Assets:
Beginning of year ..................... 1,995,057 584,947
------------ ------------
End of year ........................... $ 3,343,860 $ 1,995,057
------------ ------------
(a) For the period from January 22, 1999 (commencement of operations) to April
30, 1999.
See accompanying Notes to Financial Statements.
13
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Financial Highlights
Retail Shares
January 22,
1999 to
Money Market Portfolio April 30, 1999
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Per Share Operating Performance:
-------------
Net asset value, beginning of period ..................... $ 1.00
-------------
Net investment income .................................... .01
Less dividends declared .................................. (.01)
-------------
Net asset value, end of period ........................... $ 1.00
-------------
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Total Return (Not Annualized) ............................ 1.18%
Ratios to Average Net Assets (Annualized):
Expenses ................................................. .67%
Net investment income .................................... 4.38%
Supplemental Data For All Classes:
- --------------------------------------------------------------------------------
Net assets at end of year (in thousands) (a) ............. $ 3,343,860
(a)Includes net assets of the Institutional, Premier, Retail, and Service Share
classes.
See accompanying Notes to Financial Statements.
14
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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 portfolios: Money Market Portfolio, Government Securities Portfolio, and
the Tax-Exempt Portfolio. Effective January 22, 1999, the Money Market Portfolio
was divided into four share classes including Institutional, Premier, Retail,
and Service Shares. Shares of the Money Market Portfolio outstanding prior to
January 22, 1999 were redesignated as Service Shares. Differences in class
expenses will result in the payment of different per share income dividends by
class. All shares of the Money Market Portfolio have equal rights with respect
to voting, dividends and assets, subject to class specific preferences.
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. 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, the net asset value per share (NAV) is
determined at 11:00 a.m., 1:00 p.m. and 3:00 p.m. Chicago time for the Money
Market Portfolio. The NAV for the Money Market Portfolio is determined
separately for each class by dividing the portfolio's net assets attributable to
that class by the number of shares of each class outstanding. Each class of the
Money Market 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 class.
15
<PAGE>
Federal income taxes. The portfolio's policy is to comply with the requirements
of the Internal Revenue Code, as amended, which are applicable to regulated
investment companies, and to distribute all of its taxable income to its
shareholders. Accordingly, the portfolio paid no federal income taxes and no
federal income tax provision was required.
3. Transactions with affiliates
Management agreement. The fund has a management agreement with Scudder Kemper
Investments, Inc. (Scudder Kemper) and pays a monthly investment management fee
of 1/12 of the 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, 1999, the portfolio incurred management
fees as follows:
Management
fees
---------------
Money Market Portfolio (after expense waiver)... $ 3,120,000
Distribution agreement. The fund has a distribution agreement with Kemper
Distributors, Inc. (KDI). For its services as primary distributor, the fund pays
KDI an annual fee of .60% of average daily net assets for the Money Market
Portfolio (applicable to Service Shares only) pursuant to a separate Rule 12b-1
plan for the portfolio. For the year ended April 30, 1999, the portfolio
incurred distribution fees as follows:
Distribution
fees
---------------
Money Market Portfolio (after expense waiver)... $ 12,373,000
Administrative services agreement. The fund has an administrative and
shareholder services agreement with KDI. For providing information and
administrative services to shareholders, the Retail and Premier Shares of the
Money Market Portfolio each pay KDI a fee at an annual rate of up to .25% of
average daily net assets. Institutional Shares of the Money Market Portfolio pay
KDI a fee at an annual rate of up to .15% of average daily net assets. For the
year ended April 30, 1999, the Money Market Portfolio incurred no administrative
services fees.
Shareholder services agreement. Pursuant to a services agreement with the fund's
transfer agent, Kemper Service Company (KSvC) is the shareholder service agent
of the fund. Under the agreement, for the year ended April 30, 1999, KSvC
received shareholder services fees as follows:
Shareholder
services fees
---------------
Money Market Portfolio................. $ 4,860,000
Officers and trustees. Certain officers or trustees of the fund are also
officers or directors of Scudder Kemper. During the year ended April 30, 1999,
the portfolio
16
<PAGE>
made no payments to its officers and incurred trustees' fees to independent
trustees as follows:
Trustees' fees
---------------
Money Market Portfolio................ $ 25,000
Expense absorption. Scudder Kemper has agreed temporarily to limit the
portfolio's operating expenses to 1.00% of average daily net assets of the Money
Market Portfolio Service Shares. In addition, Scudder Kemper has agreed
temporarily to waive and absorb certain operating expenses of the Money Market
Portfolio Institutional Shares. For the year ended April 30, 1999, Scudder
Kemper absorbed expenses as follows:
Expenses
absorbed by
Scudder Kemper
---------------
Money Market Portfolio.................. $ 2,233,000
17
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Report of Independent Accountants
The Board of Trustees and Shareholders
Cash Account Trust
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Cash Account Trust, the Money Market Portfolio,
as of April 30, 1999, and the related statement 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 of the Retail Shares for the period January
22, 1999 to April 30, 1999. These financial statements and financial highlights
are the responsibility of the Trusts' 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, 1999, 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 the
Money Market Portfolio of Cash Account Trust at April 30, 1999, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights of the
Retail Shares for the period January 22, 1999 to April 30, 1999, in conformity
with generally accepted accounting principles.
Chicago, Illinois ERNST & YOUNG LLP
June 15, 1999
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Tax Information
All of the dividends from the Money Market Portfolio are taxable as ordinary
income. 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
Portfolio to the Internal Revenue Service in accordance with U.S. Treasury
Department Regulations.
Please consult a tax adviser if you have questions about federal or state income
tax laws, or on how to prepare your tax returns.
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Shareholder Meeting Results
On December 17, 1998, a special shareholders' meeting was held. Cash Account
Trust shareholders in the Money Market Portfolio were asked to vote on two
separate issues: approval of the new Investment Management Agreement between the
fund and Scudder Kemper Investments, Inc. and approval to modify or eliminate
certain policies and to eliminate the shareholder approval requirements as to
certain other matters. The first proposal was approved. The second proposal
(Proposal #2) did not receive sufficient votes to approve the proposed changes
and the meeting was adjourned. When the meeting reconvened on January 25, 1999,
Proposal #2 did not pass. The following are the results.
1. Approval of the new Investment Management Agreement between the fund and
Scudder Kemper Investments, Inc. This item was approved.
Number of Votes:
----------------
For Against Abstain
--- ------- -------
1,639,197,099 14,891,846 24,678,225
2. To modify or eliminate certain policies and to eliminate the shareholder
approval requirement as to certain other matters. There was an insufficient
number of votes for each item. These items were not approved.
Number of Votes:
----------------
Fundamental Policies For Against Abstain
-------------------- --- ------- -------
2.0 Investment objectives 334,232,699 49,044,975 37,008,770
2.1 Investment policies 335,165,425 48,112,248 37,008,770
2.2 Diversification 335,742,351 47,535,323 37,008,770
2.3 Borrowing 334,487,196 48,790,478 37,008,770
2.4 Senior securities 336,175,285 47,102,388 37,008,770
2.5 Concentration 335,979,304 47,298,369 37,008,770
2.6 Underwriting of securities 336,310,954 46,966,719 37,008,770
2.7 Investment in real estate 335,367,643 47,910,030 37,008,770
2.8 Purchase of commodities 334,690,582 48,587,093 37,008,770
2.9 Lending 335,197,685 48,079,989 37,008,770
2.10 Margin purchases and short sales 332,283,052 50,994,622 37,008,770
2.11 Purchase of securities of 335,123,497 48,154,176 37,008,770
related issuers
2.12 Pledging of assets 333,557,071 49,720,603 37,008,770
2.13 Restricted and illiquid 332,570,816 50,706,857 37,008,770
securities
2.14 Purchases of securities 335,135,444 48,142,230 37,008,770
2.15 Purchases of puts and calls 333,431,910 49,845,764 37,008,770
2.16 Investment for the purpose of 334,371,008 48,906,666 37,008,770
exercising control or management
2.17 Investment in mineral exploration 331,434,890 51,842,783 37,008,770
2.18 Investment in issuers with short 333,299,714 49,977,959 37,008,770
histories
2.19 Investment in other investment 334,566,216 48,711,458 37,008,770
companies
2.20 Investment in non-U.S. 334,387,390 48,890,283 37,008,770
Government securities
2.21 Investment other than in 331,631,829 51,645,845 37,008,770
accordance with objectives and
policies
2.22 Investment in municipal 336,109,140 47,168,534 37,008,770
securities
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Officers and Trustees
Kathryn L. Quirk*
Chairperson and Trustee
Dr. Rosita P. Chang
Trustee; Professor of Finance,
University of Rhode Island
Edgar R. Fiedler
Trustee; Senior Fellow and Economic Counsellor,
The Conference Board, Inc.
Dr. J. D. Hammond
Trustee; Dean, Smeal College of Business Administration,
Pennsylvania State University
Richard M. Hunt
Trustee; University Marshal and Senior Lecturer,
Harvard University
Paul Secord
President; Farmers Investment Trust
Frank J. Rachwalski, Jr.*
Vice President
Thomas W. Joseph*
Vice President
Ann M. McCreary*
Vice President
John R. Hebble*
Treasurer
Caroline Pearson*
Assistant Secretary
Elizabeth C. Werth*
Assistant Secretary
* Scudder Kemper Investments, Inc.
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Farmers Financial Solutions -- helping you get to where you want to be.
Working with your Farmers agent* to better understand your financial needs,
clarify your goals, and develop steps you can take towards those goals.
* The securities are offered through your agent, a registered representative of
Investors Brokerage Services, Inc.
Scudder Kemper Investments is the adviser to Farmers Money Market Portfolio.
Scudder Kemper Investments has 80 years of money management experience and
offers a full range of investment counsel and asset management capabilities,
based on a combination of proprietary research and disciplined long-term
investment strategies. Scudder Kemper Investments manages more than $280 billion
in assets globally for mutual fund investors, retirement and pension plans,
institutional and corporate clients, insurance companies, and private family and
individual accounts.
This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
Kemper Distributors, Inc. is the principal underwriter of Farmers Money Market
Portfolio.
Farmers Financial Services is not a separate entity and neither it nor Farmers
is engaged in the business of providing investment advice and is not registered
as an investment adviser or broker/dealer under the federal securities laws.
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