CASH ACCOUNT TRUST
Money Market Portfolio
Government Securities Portfolio
Tax-Exempt Portfolio
SUPPLEMENT TO PROSPECTUS
DATED SEPTEMBER 1, 1998
--------------------
SUMMARY OF EXPENSES
This information is designed to help you understand the various costs and
expenses of investing in the Service Shares of the Money Market Portfolio, and
the shares of Government Portfolio and Tax-Exempt Portfolio ("Shares"). *
<TABLE>
<CAPTION>
Shareholder Transaction Expenses(1) ................................................................None
Annual Fund Operating Expenses
(after fee waiver and expense absorption) Money Market Government Tax-Exempt
(as a percentage of average net assets) Portfolio Securities Portfolio Portfolio
--------- -------------------- ---------
<S> <C> <C> <C>
Management Fees .............................................0.19% 0.19% 0.19%
12b-1 Fees(2) ...............................................0.51% 0.59% 0.50%
Other Expenses ..............................................0.30% 0.22% 0.25%
----- ----- -----
Total Operating Expenses ....................................1.00% 1.00% 0.94%
===== ===== =====
</TABLE>
- -----------
* The information set forth on this page relates only to the Shares. The
Money Market Portfolio also offers three other classes of shares, which
have different fees and expenses (which may affect performance), have
different minimum investment requirements and are entitled to different
services.
(1) Investment dealers and other firms may independently charge
shareholders additional fees; please see their materials for details.
(2) As a result of the accrual of 12b-1 fees, long-term shareholders may
pay more than the economic equivalent of the maximum front-end sales
charges permitted by the National Association of Securities Dealers.
<TABLE>
<CAPTION>
Example Portfolio 1 Year 3 Years 5 Years 10 Years
- ------- --------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C>
You would pay the following expenses on a $1,000 Money Market $10 $32 $55 $122
investment in the Shares, assuming (1) 5% annual
return and (2) redemption at the end of each time Government
period: Securities $10 $32 $55 $122
Tax-Exempt $10 $30 $52 $115
</TABLE>
January 22, 1999
<PAGE>
The purpose of the preceding table is to assist investors in understanding the
various costs and expenses that an investor in the Fund will bear directly or
indirectly. Kemper Distributors, Inc. ("KDI"), as principal underwriter, has
agreed to waive temporarily its 12b-1 fee to the extent, if any that total
operating expenses attributable to the Shares as defined, exceed the following
percentages of average daily net assets of the Portfolios attributable to the
Shares: Money Market Portfolio (1.00%), Government Securities Portfolio (1.00%)
and Tax-Exempt Portfolio (0.95%). Prior to January 22, 1999, Scudder Kemper
Investments, Inc. (the "Adviser") waived the management fee for each Portfolio
rather than KDI waiving the 12b-1 fee, to the extent necessary to limit "Total
Operating Expenses" to the aforementioned levels of 1.00% for the Money Market
Portfolio and Government Securities Portfolio and 0.95% for the Tax-Exempt
Portfolio. Without such waiver and reimbursement during the fiscal year ended
April 30, 1998, "Management Fees" for the Money Market Portfolio and the
Government Securities Portfolio would have been 0.19% and 0.19%, respectively,
"12b-1 Fees" would have been 0.60% and 0.60%, respectively, and "Total Operating
Expenses" would have been 1.10% and 1.02%, respectively. The actual expenses for
the Tax-Exempt Portfolio were lower than the expense limit of 0.95%, therefore,
the numbers in the table do not reflect any waiver or reimbursement. In
addition, from time to time, the Adviser or KDI may voluntarily waive fees or
absorb certain additional operating expenses of the Portfolios. "Other Expenses"
does not reflect the effect of any such additional expense absorption. The
Example assumes a 5% annual rate of return pursuant to requirements of the
Securities and Exchange Commission. This hypothetical rate of return is not
intended to be representative of past or future performance of any Portfolio of
the Fund. The Example should not be considered to be a representation of past or
future expenses. Actual expenses may be greater or less than those shown.
2
<PAGE>
FINANCIAL HIGHLIGHTS
The tables below show financial information expressed in terms of one share of
the Shares of the Portfolios outstanding throughout the period.* The information
(excluding the six months ended October 31, 1998) in the tables is covered by
the report of the Fund's independent auditors. The report is contained in the
Fund's Registration Statement and is available from the Fund. The financial
statements contained in the Fund's 1998 Annual and Semiannual Reports to
Shareholders are incorporated herein by reference and may be obtained by writing
or calling the Fund.
<TABLE>
<CAPTION>
Money Market Portfolio
Six months ended
October 31, Year ended April 30,
1998 1998 1997 1996
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $1.00 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Net investment income 0.02 0.05 0.05 0.05
- ---------------------------------------------------------------------------------------------------------------------
Less dividends declared 0.02 0.05 0.05 0.05
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Total Return (%) 2.36% 4.85 4.60 4.96
- ---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses after expense waiver (%) 1.00% 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (%) 4.67% 4.71 4.51 4.83
- ---------------------------------------------------------------------------------------------------------------------
Other Ratios to Average Net Assets:
Expenses (%) 1.09% 1.10 1.03 1.05
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (%) 4.58% 4.61 4.48 4.78
- ---------------------------------------------------------------------------------------------------------------------
Supplemental Data:
Net assets at end of period (in $2,109,323 1,995,057 584,947 455,025
thousands)
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Money Market Portfolio (continued)
December 3, 1990
Year ended April 30, to April 30,
1995 1994 1993 1992 1991
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $1.00 1.00 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Net investment income 0.04 0.02 0.02 0.04 0.03
- ---------------------------------------------------------------------------------------------------------------------
Less dividends declared 0.04 0.02 0.02 0.04 0.03
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 1.00 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Total Return (%) 4.38% 2.42 2.65 4.44 2.63
- ---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses after expense waiver (%) 0.99% 0.93 0.84 0.93 1.00
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (%) 4.54% 2.48 2.59 4.03 6.24
- ---------------------------------------------------------------------------------------------------------------------
Other Ratios to Average Net Assets:
Expenses (%) 1.05% 1.20 1.36 1.57 1.58
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (%) 4.48% 2.21 2.07 3.39 5.66
- ---------------------------------------------------------------------------------------------------------------------
Supplemental Data:
Net assets at end of period (in $378,551 156,153 34,267 27,905 6,105
thousands)
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
Government Securities Portfolio
Six months ended
October 31, Year ended April 30,
1998 1998 1997 1996
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $1.00 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Net investment income 0.02 0.05 0.05 0.05
- ---------------------------------------------------------------------------------------------------------------------
Less dividends declared 0.02 0.05 0.05 0.05
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Total Return (%) 2.29% 4.78 4.69 5.01
- ---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses after expense waiver (%) 1.00% 0.98 0.92 0.90
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (%) 4.54% 4.68 4.59 4.88
- ---------------------------------------------------------------------------------------------------------------------
Other Ratios to Average Net Assets:
Expenses (%) 1.04% 1.02 0.99 1.06
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (%) 4.50% 4.64 4.52 4.72
- ---------------------------------------------------------------------------------------------------------------------
Supplemental Data:
Net assets at end of period (in $690,884 804,565 544,501 189,919
thousands)
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Government Securities Portfolio (continued)
December 3, 1990
Year ended April 30, to April 30,
1995 1994 1993 1992 1991
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $1.00 1.00 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Net investment income 0.04 0.02 0.02 0.04 0.03
- ---------------------------------------------------------------------------------------------------------------------
Less dividends declared 0.04 0.02 0.02 0.04 0.03
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 1.00 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Total Return (%) 4.37% 2.49 2.65 4.54 2.47
- ---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses after expense waiver (%) 0.90% 0.84 0.79 0.79 0.87
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (%) 4.66% 2.47 2.63 4.41 5.95
- ---------------------------------------------------------------------------------------------------------------------
Other Ratios to Average Net Assets:
Expenses (%) 1.05% 1.22 1.18 1.20 1.44
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (%) 4.51% 2.09 2.24 4.00 5.38
- ---------------------------------------------------------------------------------------------------------------------
Supplemental Data:
Net assets at end of period (in $138,020 30,829 28,963 34,119 30,080
thousands)
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
Tax-Exempt Portfolio
Six months ended
October 31, Year ended April 30,
1998 1998 1997 1996
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $1.00 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Net investment income 0.01 0.03 0.03 0.03
- ---------------------------------------------------------------------------------------------------------------------
Less dividends declared 0.01 0.03 0.03 0.03
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Total Return (%) 1.39% 2.92 2.82 3.16
- ---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses after expense waiver (%) 0.91% 0.91 0.81 0.78
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (%) 2.75% 2.87 2.78 3.10
- ---------------------------------------------------------------------------------------------------------------------
Other Ratios to Average Net Assets:
Expenses (%) 0.91% 0.94 0.96 0.98
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (%) 2.75% 2.84 2.63 2.90
- ---------------------------------------------------------------------------------------------------------------------
Supplemental Data:
Net assets at end of period (in $356,364 368,141 220,791 66,981
thousands)
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Tax-Exempt Portfolio (continued)
December 3, 1990
Year ended April 30, to April 30,
1995 1994 1993 1992 1991
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $1.00 1.00 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Net investment income 0.03 0.02 0.02 0.03 0.02
- ---------------------------------------------------------------------------------------------------------------------
Less dividends declared 0.03 0.02 0.02 0.03 0.02
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 1.00 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Total Return (%) 2.80% 1.84 2.13 3.46 1.76
- ---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses after expense waiver (%) 0.76% 0.74 0.71 0.67 0.75
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (%) 3.00% 1.82 2.09 3.34 4.30
- ---------------------------------------------------------------------------------------------------------------------
Other Ratios to Average Net Assets:
Expenses (%) 0.93% 1.20 1.39 1.38 0.97
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (%) 2.83% 1.36 1.41 2.63 4.08
- ---------------------------------------------------------------------------------------------------------------------
Supplemental Data:
Net assets at end of period, (in $67,748 16,991 10,014 7,097 3,904
thousands)
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
* Effective January 22, 1999, the shares of the Money Market Portfolio
were divided into four classes of shares, of which the Service Shares
is one. Shares of the Money Market Portfolio outstanding on such date
were redesignated as the Service Shares class of the Money Market
Portfolio. The data set forth above reflects the operations of the
Money Market Portfolio prior to such redesignation.
Note:
(a) 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.
(b) The Adviser has agreed to waive temporarily its management fee and
reimburse or pay certain operating expenses to the extent necessary to
limit expenses to specific levels. The Other Ratios to Average Net
Assets are computed without this waiver and expense absorption. Ratios
have been determined on an annualized basis. Total return is not
annualized.
5
