<PAGE> 1
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------
We appreciate your decision to invest in Kemper Funds. The following pages
include the annual report and the financial highlights for the period ended
April 30, 1999 of two classes of Cash Account Trust Money Market Portfolio:
- - Kemper's Retail Money Market Shares
- - Kemper's Institutional Money Market Shares
During the past year, the portfolio registered solid performance and achieved
its objective of providing maximum current income while maintaining the
stability of principal.
ECONOMIC REVIEW AND OUTLOOK
The U.S. economy continued to grow, as low inflation and low unemployment
figures boosted consumer confidence. Meanwhile, the international uncertainty
that caused the Federal Reserve Board to ease interest rates three times in late
1998 appears to have subsided, as Europe, Asia and Brazil showed signs of
rebounding. These factors helped build the expectation that the Gross Domestic
Product should remain strong with growth continuing above 3% in the second
quarter of 1999. Even with this good news, the Fed has maintained a "wait and
see" strategy with regard to tightening interest rates, although there have been
recent indications that this approach may change.
Considering this information, we plan to take a relatively neutral approach to
the portfolio's average maturity. We also may look for attractive opportunities
to extend maturities and enhance performance because we do not anticipate
significant upward pressures on interest rates. The portfolios should continue
to offer attractive yield potential with a high degree of stability, and
continue to be an excellent place for you to invest.
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 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.
PORTFOLIO RESULTS
For the period from inception on January 22, 1999 to April 30, 1999
<TABLE>
<CAPTION>
NET ANNUALIZED YIELD
--------------------
<S> <C>
Kemper's Institutional
Money Market Shares 4.78%
Kemper's Retail Money
Market Shares 4.38%
</TABLE>
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 the fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although the fund 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.
<PAGE> 2
2
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
Investments at April 30, 1999
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Corporate Obligations Value
<S> <C>
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
- ----------------------------------------------------------
(a)Wells Fargo & Co.
4.88%, 6/29/99 31,979
- ----------------------------------------------------------
190,264
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
- ----------------------------------------------------------
746,293
CAPITAL AND EQUIPMENT LENDING--3.6%
- ----------------------------------------------------------
Ace Overseas Corp.
4.89%, 5/12/99 19,970
- ----------------------------------------------------------
(a)American Honda Finance Corp.
4.89%, 5/26/99 10,000
- ----------------------------------------------------------
(a)Caterpillar Financial Services Corp.
5.00%, 5/11/99 - 6/10/99 25,003
- ----------------------------------------------------------
Fountain Square Commercial Funding Corp.
4.95%, 5/3/99 35,985
- ----------------------------------------------------------
IBM Credit Corp.
5.13%, 3/22/00 9,996
- ----------------------------------------------------------
(a)John Deere Capital Corp.
4.90%, 5/3/99 19,991
- ----------------------------------------------------------
120,945
CAPTIVE BUSINESS LENDING--5.6%
- ----------------------------------------------------------
British Gas Capital, Inc.
4.84%, 5/19/99 19,952
- ----------------------------------------------------------
</TABLE>
<PAGE> 3
3
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
Investments at April 30, 1999
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
California Pollution Control Financing
Authority
4.85%, 5/12/99 $ 20,000
- ----------------------------------------------------------
(a)(b)Capital One Funding Corp.
4.89%, 5/6/99 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
- ----------------------------------------------------------
187,346
CONSUMER LENDING--4.2%
- ----------------------------------------------------------
(a)Avco Financial Services, Inc.
5.04%, 5/17/99 10,000
- ----------------------------------------------------------
(a)Countrywide Home Loans
4.97% - 5.22%, 7/25/99 - 7/26/99 22,000
- ----------------------------------------------------------
(b)GMAC Mortgage Corporation of Pennsylvania
5.01%, 5/4/99 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
(a) 5.25%, 7/22/99 15,000
- ----------------------------------------------------------
141,696
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
- ----------------------------------------------------------
85,587
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.
(a) 4.84%, 5/3/99 14,998
4.85%, 6/4/99 24,887
- ----------------------------------------------------------
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
(a) 4.95% - 4.98%, 6/8/99 - 7/12/99 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
- ----------------------------------------------------------
408,178
FINANCIAL SERVICES--6.9%
- ----------------------------------------------------------
(a)Bear Stearns Cos., Inc.
4.90% - 5.32%, 5/8/99 - 5/19/99 20,000
- ----------------------------------------------------------
(a)CS First Boston, Inc.
4.86%, 5/3/99 22,000
- ----------------------------------------------------------
(a)Goldman Sachs Group, L.P.
4.95%, 6/8/99 25,000
- ----------------------------------------------------------
Lehman Brothers Holdings, Inc.
5.06%, 6/21/99 29,788
- ----------------------------------------------------------
(a)Merrill Lynch & Co., Inc.
4.91%, 5/21/99 20,000
- ----------------------------------------------------------
</TABLE>
<PAGE> 4
4
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
Investments at April 30, 1999
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
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
- ----------------------------------------------------------
231,709
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
- ----------------------------------------------------------
59,317
MANUFACTURING/INDUSTRIAL--1.1%
- ----------------------------------------------------------
Michelin Tire Corp.
5.20%, 5/3/99 19,994
- ----------------------------------------------------------
(a)Xerox Capital Europe, PLC
4.89%, 5/22/99 14,998
- ----------------------------------------------------------
34,992
MUNICIPAL AND STATE OBLIGATIONS--1.2%
- ----------------------------------------------------------
Oakland - Alameda County Coliseum, California
4.90% - 4.91%, 5/3/99 - 5/7/99 37,350
- ----------------------------------------------------------
(a)Texas, General Obligation
4.86%, 5/7/99 2,255
- ----------------------------------------------------------
39,605
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
- ----------------------------------------------------------
84,815
FOREIGN GOVERNMENT--.8%
- ----------------------------------------------------------
Export Development Corp.
4.84%, 5/7/99 $ 24,980
- ----------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS--70.5%
(average maturity: 32 days) 2,355,727
- ----------------------------------------------------------
BANK OBLIGATIONS
CERTIFICATES OF DEPOSIT AND BANK NOTES--U.S. BANKS--9.7%
- ----------------------------------------------------------
(a)American Express Centurian Bank
4.89%, 5/24/99 10,000
- ----------------------------------------------------------
(a)American Express Co.
4.92%, 5/17/99 - 5/18/99 20,000
- ----------------------------------------------------------
(a)Bankers Trust Co.
4.83%, 5/3/99 15,000
- ----------------------------------------------------------
(a)Comerica Bank
4.90%, 5/17/99 24,990
- ----------------------------------------------------------
(a)First Bank Corp.
4.99%, 5/17/99 15,011
- ----------------------------------------------------------
(a)First National Bank of Boston
4.86% - 5.00%, 5/3/99 - 7/7/99 30,000
- ----------------------------------------------------------
(a)First Union National Bank
5.02%, 5/17/99 27,000
- ----------------------------------------------------------
(a)Harris Trust and Savings Bank
4.91%, 5/3/99 44,984
- ----------------------------------------------------------
(a)Huntington National Bank
4.96%, 5/5/99 24,996
- ----------------------------------------------------------
(a)J.P. Morgan & Co., Inc.
4.83%, 5/7/99 16,998
- ----------------------------------------------------------
(a)Key Bank, N.A.
4.89%, 5/29/99 19,996
- ----------------------------------------------------------
NationsBank, N.A.
4.88%, 6/4/99 25,000
- ----------------------------------------------------------
(a)Northern Trust Corp.
4.83%, 5/10/99 16,996
- ----------------------------------------------------------
(a)PNC Bank, N.A.
5.02%, 5/4/99 20,000
- ----------------------------------------------------------
(a)U.S. Bank, N.A.
4.91%, 5/20/99 14,998
- ----------------------------------------------------------
325,969
</TABLE>
<PAGE> 5
5
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
Investments at April 30, 1999
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
CERTIFICATES OF DEPOSIT--FOREIGN BANKS--11.6%
- ----------------------------------------------------------
(a)Abbey National, N.A.
4.85%, 7/20/99 $ 24,994
- ----------------------------------------------------------
(a)Bank of Montreal
4.89%, 6/30/99 34,983
- ----------------------------------------------------------
(a)Bayerische Hypo-Und Vereinsbank AG
4.85%, 5/19/99 89,957
- ----------------------------------------------------------
(a)Bayerische Landesbank
4.82%, 5/10/99 69,954
- ----------------------------------------------------------
(a)Commerzbank A.G.
4.91%, 7/6/99 34,987
- ----------------------------------------------------------
(a)Den Danske Bank
4.85%, 5/17/99 24,989
- ----------------------------------------------------------
(a)Deutsche Bank Financial Inc.
4.89%, 5/3/99 64,959
- ----------------------------------------------------------
(a)Royal Bank of Canada
4.80% - 4.89%, 5/3/99 - 7/1/99 29,988
- ----------------------------------------------------------
(a)Svenska Handelsbanken
4.94%, 5/17/99 12,000
- ----------------------------------------------------------
386,811
- ----------------------------------------------------------
TOTAL BANK OBLIGATIONS--21.3%
(average maturity: 22 days) 712,780
- ----------------------------------------------------------
(C)REPURCHASE AGREEMENTS
(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
- ----------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS--5.7%
(average maturity: 8 days) 190,000
- ----------------------------------------------------------
U.S. GOVERNMENT AGENCY NOTES
(a)Federal Home Loan Bank
4.80%, 5/3/99 5,997
- ----------------------------------------------------------
Federal Home Loan Mortgage Corp.
4.84% - 4.85%, 5/14/99 - 5/18/99 29,940
- ----------------------------------------------------------
(a)Federal National Mortgage Association
4.58%, 5/4/99 4,999
- ----------------------------------------------------------
(a)Student Loan Marketing Association
4.86%, 5/4/99 29,996
- ----------------------------------------------------------
TOTAL U.S. GOVERNMENT
AGENCY NOTES--2.1%
(average maturity: 9 days) 70,932
- ----------------------------------------------------------
TOTAL INVESTMENTS--99.6%
(average maturity: 28 days) 3,329,439
- ----------------------------------------------------------
CASH AND OTHER ASSETS,
LESS LIABILITIES--.4% 14,421
- ----------------------------------------------------------
NET ASSETS--100% $3,343,860
- ----------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolio of Investments.
<PAGE> 6
6
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIO 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,
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.
<PAGE> 7
7
- --------------------------------------------------------------------------------
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 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 for each of the fiscal periods since 1995.
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
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 1995, in conformity with generally accepted
accounting principles.
ERNST & YOUNG LLP
Chicago, Illinois
June 15, 1999
<PAGE> 8
8
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY
MARKET
ASSETS PORTFOLIO
<S> <C>
- ------------------------------------------------------------------------
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
- ------------------------------------------------------------------------
Total assets 3,367,946
- ------------------------------------------------------------------------
LIABILITIES AND NET ASSETS
- ------------------------------------------------------------------------
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
- ------------------------------------------------------------------------
Total liabilities 24,086
- ------------------------------------------------------------------------
Net assets applicable to shares outstanding $3,343,860
- ------------------------------------------------------------------------
THE PRICING OF SHARES
- ------------------------------------------------------------------------
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
- ------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE> 9
9
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
Year ended April 30, 1999
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY
MARKET
---------
<S> <C>
INTEREST INCOME $121,366
- -----------------------------------------------------------------------
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
- -----------------------------------------------------------------------
Total expenses before expense waiver 25,018
- -----------------------------------------------------------------------
Less expenses waived by the investment manager (2,233)
- -----------------------------------------------------------------------
Total expenses absorbed by the portfolio 22,785
- -----------------------------------------------------------------------
Net investment income 98,581
- -----------------------------------------------------------------------
</TABLE>
<PAGE> 10
10
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Years ended April 30, 1999 and 1998
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET
----------PORTFOLIO----------
1999 1998
-----------------------------
<S> <C> <C>
OPERATIONS, DIVIDENDS AND CAPITAL SHARE ACTIVITY
Net investment income $ 98,581 61,857
- -------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (98,581) (61,857)
- -------------------------------------------------------------------------------------------
Capital share transactions (dollar amounts and
number of shares are the same):
INSTITUTIONAL SHARES (A):
Shares sold 101 --
- -------------------------------------------------------------------------------------------
Shares issued in reinvestment of dividends 1 --
- -------------------------------------------------------------------------------------------
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) --
- -------------------------------------------------------------------------------------------
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
- -------------------------------------------------------------------------------------------
21,478,255 8,991,157
Shares redeemed (20,129,927) (7,581,047)
- -------------------------------------------------------------------------------------------
Net increase from capital share transactions 1,348,328 1,410,110
- -------------------------------------------------------------------------------------------
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
- -------------------------------------------------------------------------------------------
</TABLE>
(a) For the period from January 22, 1999 (commencement of operations) to April
30, 1999.
<PAGE> 11
11
- --------------------------------------------------------------------------------
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.
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.
<PAGE> 12
12
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
During the year ended April 30, 1999, the portfolio incurred management fees as
follows:
<TABLE>
<CAPTION>
MANAGEMENT FEES
---------------
<S> <C>
Money Market Portfolio
(after expense waiver)..... $3,120,000
</TABLE>
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:
<TABLE>
<CAPTION>
DISTRIBUTION FEES
----------------------
<S> <C>
Money Market Portfolio
(after expense waiver)...... $12,373,000
</TABLE>
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:
<TABLE>
<CAPTION>
SHAREHOLDER SERVICES FEES
-------------------------
<S> <C>
Money Market Portfolio....... $4,860,000
</TABLE>
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 made no
payments to its officers and incurred trustees' fees to independent trustees as
follows:
<TABLE>
<CAPTION>
TRUSTEES' FEES
----------------------
<S> <C>
Money Market Portfolio........ $25,000
</TABLE>
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:
<TABLE>
<CAPTION>
EXPENSES
ABSORBED BY
SCUDDER
KEMPER
-----------
<S> <C>
Money Market Portfolio............ $2,233,000
</TABLE>
<PAGE> 13
13
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
January 22, to
MONEY MARKET PORTFOLIO -- INSTITUTIONAL SHARES April 30, 1999
- ----------------------------------------------------------------------------
<S> <C>
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
- ----------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED): 1.29%
- ----------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Expenses .25%
- ----------------------------------------------------------------------------
Net investment income 4.75%
- ----------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS (ANNUALIZED)(A):
Expenses .28%
- ----------------------------------------------------------------------------
Net investment income 4.72%
- ----------------------------------------------------------------------------
<CAPTION>
January 22, to
MONEY MARKET PORTFOLIO -- RETAIL SHARES April 30, 1999
- ----------------------------------------------------------------------------
<S> <C>
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
- ----------------------------------------------------------------------------
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)(b) $3,343,860
- ----------------------------------------------------------------------------
</TABLE>
NOTES:
(a) Scudder Kemper has agreed to temporarily waive certain operating expenses of
the Institutional Share class. The Other Ratios to Average Net Assets are
computed without this expense waiver.
(b) Includes net assets of the Institutional, Premier, Retail, and Service Share
classes.
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.
<PAGE> 14
14
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SPECIAL SHAREHOLDERS' MEETING
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 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.
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
---------------------------------------
<S> <C> <C>
1,639,197,099 14,891,846 24,678,225
</TABLE>
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.
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
---------------------------------------
<S> <C> <C>
INVESTMENT OBJECTIVES
334,232,699 49,044,975 37,008,770
INVESTMENT POLICIES
335,165,425 48,112,248 37,008,770
DIVERSIFICATION
335,742,351 47,535,323 37,008,770
BORROWING
334,487,196 48,790,478 37,008,770
SENIOR SECURITIES
336,175,285 47,102,388 37,008,770
CONCENTRATION
335,979,304 47,298,369 37,008,770
UNDERWRITING OF SECURITIES
336,310,954 46,966,719 37,008,770
INVESTMENT IN REAL ESTATE
335,367,643 47,910,030 37,008,770
PURCHASE OF COMMODITIES
334,690,582 48,587,093 37,008,770
LENDING
335,197,685 48,079,989 37,008,770
MARGIN PURCHASES AND SHORT SALES
332,283,052 50,994,622 37,008,770
PURCHASES OF SECURITIES OF RELATED
ISSUERS
335,123,497 48,154,176 37,008,770
PLEDGING OF ASSETS
333,557,071 49,720,603 37,008,770
RESTRICTED AND ILLIQUID SECURITIES
332,570,816 50,706,857 37,008,770
PURCHASES OF SECURITIES
335,135,444 48,142,230 37,008,770
PURCHASES OF PUTS AND CALLS
333,431,910 49,845,764 37,008,770
INVESTMENT FOR THE PURPOSE OF EXERCISING
CONTROL OR MANAGEMENT
334,371,008 48,906,666 37,008,770
INVESTMENT IN MINERAL EXPLORATION
331,434,890 51,842,783 37,008,770
INVESTMENT IN ISSUERS WITH SHORT HISTORIES
333,299,714 49,977,959 37,008,770
</TABLE>
<PAGE> 15
15
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
---------------------------------------
<S> <C> <C>
INVESTMENT IN OTHER INVESTMENT COMPANIES
334,566,216 48,711,458 37,008,770
INVESTMENT IN NON-US GOVERNMENT SECURITIES
334,387,390 48,890,283 37,008,770
INVESTMENT OTHER THAN IN ACCORDANCE WITH
OBJECTIVE AND POLICIES
331,631,829 51,645,845 37,008,770
INVESTMENT IN MUNICIPAL SECURITIES
336,109,140 47,168,534 37,008,770
</TABLE>
<PAGE> 16
[KEMPER LOGO]
[KEMPER LOGO]
Kemper Distributors, Inc.
222 South Riverside Plaza
Chicago, IL 60606
www.kemper.com
Annual Report
For the Period Ended
April 30, 1999
Retail Money
Market Shares
Institutional Money
Market Shares
[RECYCLE LOGO]
Printed on recycled paper.
KMM-2 1078930 (6/21/99)
