[LOGO] KEMPER FUNDS
Annual Report
--------------------------------------------------------------------------------
April 30, 2000
Premium Reserve Money
Market Shares
Institutional Money
Market Shares
<PAGE>
Dear Shareholder:
We appreciate your decision to invest in Kemper Funds. To provide you with an
update of holdings, on the following pages you'll find the Money Market
Portfolio's annual report for the year ended April 30, 2000. Included are
financial highlights for the following share classes:
o Premium Reserve Money Market Shares
(formerly Retail Shares)
o Institutional Money Market Shares
Briefly, for the year ending April 30, 2000 the Portfolio registered performance
and achieved its stated objective of providing maximum current income while
maintaining stability of principal.
Portfolio Results
As of April 30, 2000
-----------------------------------------------------------------------------
Annualized Net Yield
-----------------------------------------------------------------------------
12-Month SEC 7-Day
-----------------------------------------------------------------------------
Premium Reserve
Money Market Shares 5.31% 5.71%
-----------------------------------------------------------------------------
Institutional Money
Market Shares 5.58% 6.08%
-----------------------------------------------------------------------------
Thank you 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 5, 2000
Frank Rachwalski is a Managing Director of Scudder Kemper Investments, Inc. and
is Vice President and Lead Portfolio Manager of all Scudder Kemper Money Funds.
Mr. Rachwalski holds B.B.A. and M.B.A. degrees from Loyola University.
Notes
Yields are historical, may fluctuate, and do not guarantee future performance.
The Fund's net yield is the sum of the daily dividend rates for the period.
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.
1
<PAGE>
<TABLE>
<CAPTION>
Portfolio of Investments at April 30, 2000
Principal
Amount Value
------------------------------------------------------------------------------------------------------------------------
Money Market Portfolio
Corporate Obligations -- 83.3%
------------------------------------------------------------------------------------------------------------------------
Banking -- 4.8%
<S> <C> <C>
Allfirst Bank
6.10%*, 5/16/2000 $ 45,000,000 $ 44,990,582
------------------------------------------------------------------------------------------------------------------------
Banc One Australia
6.07%-6.22%, 6/7/2000-6/19/2000 35,000,000 34,740,936
------------------------------------------------------------------------------------------------------------------------
Bank One Corp.
6.18%-6.32%*, 5/4/2000-7/5/2000 35,000,000 34,994,422
------------------------------------------------------------------------------------------------------------------------
COFCO Capital Corp.
6.22%-6.23%, 6/19/2000-6/22/2000 70,000,000 69,396,163
------------------------------------------------------------------------------------------------------------------------
Comerica Bank
6.05%*, 5/14/2000 40,000,000 39,979,770
------------------------------------------------------------------------------------------------------------------------
Northern Rock PLC
6.13%*, 6/14/2000 40,000,000 39,997,581
------------------------------------------------------------------------------------------------------------------------
Wells Fargo & Co.
6.06%, 5/18/2000 50,000,000 49,857,625
------------------------------------------------------------------------------------------------------------------------
313,957,079
------------------------------------------------------------------------------------------------------------------------
Business Loans -- 26.8%
Associates First Capital
6.07%, 5/23/2000 50,000,000 49,815,750
------------------------------------------------------------------------------------------------------------------------
Corporate Asset Funding
6.09%, 5/25/2000 50,000,000 49,798,667
------------------------------------------------------------------------------------------------------------------------
Corporate Receivables Corp.
6.13%-6.16%, 6/7/2000-6/19/2000 100,000,000 99,274,292
------------------------------------------------------------------------------------------------------------------------
Delaware Funding Corp.
6.15%, 6/21/2000 40,000,000 39,656,033
------------------------------------------------------------------------------------------------------------------------
Eureka Securitization, Inc.
6.16%-6.20%, 5/24/2000-6/19/2000 70,000,000 69,505,556
------------------------------------------------------------------------------------------------------------------------
Falcon Asset Securitization Corp.
6.09%-6.11%, 5/16/2000-5/22/2000 98,040,000 97,742,332
------------------------------------------------------------------------------------------------------------------------
International Securitization Corp.
6.10%-6.39%, 5/24/2000-8/10/2000 86,107,000 85,262,514
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
Principal
Amount Value
------------------------------------------------------------------------------------------------------------------------
Intrepid Funding Corp.
6.21%-6.22%, 6/13/2000-6/19/2000 $ 100,000,000 $ 99,217,403
------------------------------------------------------------------------------------------------------------------------
Kitty Hawk Funding Corp.
6.19%-6.33%, 6/1/2000-7/24/2000 61,294,000 60,771,830
------------------------------------------------------------------------------------------------------------------------
Monte Rosa Capital Corp.
6.08%, 5/12/2000 44,888,000 44,805,020
------------------------------------------------------------------------------------------------------------------------
Old Line Funding Corp.
6.14%-6.15%, 6/5/2000-6/9/2000 71,133,000 70,677,558
------------------------------------------------------------------------------------------------------------------------
Park Avenue Receivables
6.12%, 5/5/2000 40,000,000 39,972,978
------------------------------------------------------------------------------------------------------------------------
Preferred Receivables Funding Corp.
6.09%-6.11%, 5/11/2000-5/22/2000 100,000,000 99,739,375
------------------------------------------------------------------------------------------------------------------------
Quincy Capital Corp.
6.07%-6.14%, 5/8/2000-6/14/2000 96,121,000 95,852,000
------------------------------------------------------------------------------------------------------------------------
Receivables Capital Corp.
6.14%-6.15%, 6/14/2000-6/19/2000 100,000,000 99,214,597
------------------------------------------------------------------------------------------------------------------------
Sheffield Receivables Corp.
6.08%-6.13%, 5/1/2000-5/22/2000 113,875,000 113,666,184
------------------------------------------------------------------------------------------------------------------------
SMM Trust 1999-A
6.15%-6.40%*, 5/13/2000-7/15/2000 105,000,000 105,000,000
------------------------------------------------------------------------------------------------------------------------
Stellar Funding Group
6.08%-6.16%, 5/10/2000-6/5/2000 60,539,000 60,309,905
------------------------------------------------------------------------------------------------------------------------
Sweetwater Capital Corp.
6.10%-6.25%, 5/2/2000-5/30/2000 105,171,000 104,909,961
------------------------------------------------------------------------------------------------------------------------
Thunder Bay Funding, Inc.
6.08%-6.13%, 5/23/2000-6/5/2000 102,495,000 102,088,391
------------------------------------------------------------------------------------------------------------------------
WCP Funding, Inc.
6.14%, 6/7/2000 100,000,000 99,374,083
------------------------------------------------------------------------------------------------------------------------
Wood Street Funding Corp.
6.06%-6.07%, 5/1/2000-5/19/2000 67,342,000 67,250,938
------------------------------------------------------------------------------------------------------------------------
1,753,905,367
------------------------------------------------------------------------------------------------------------------------
Capital, Auto, and Equipment Lending-- 12.2%
Ace Overseas Corp.
6.11%-6.29%, 5/15/2000-7/17/2000 124,750,000 123,580,491
------------------------------------------------------------------------------------------------------------------------
American Honda Finance Corp.
6.14%, 6/19/2000 30,000,000 29,997,997
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
Principal
Amount Value
------------------------------------------------------------------------------------------------------------------------
Atlantis One Funding
6.08%-6.12%, 5/25/2000-5/26/2000 $ 100,000,000 $ 99,588,771
------------------------------------------------------------------------------------------------------------------------
Bavaria Universal Funding
6.26%-6.50%, 7/17/2000-9/25/2000 100,500,000 98,793,099
------------------------------------------------------------------------------------------------------------------------
Chrysler Financing Company, LLC
6.09%*, 5/16/2000 13,000,000 13,008,589
------------------------------------------------------------------------------------------------------------------------
CIT Group Holdings, Inc.
6.11%*, 5/1/2000 43,000,000 42,973,152
------------------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co.
6.06%-6.27%*, 5/18/2000-6/30/2000 65,000,000 64,991,405
------------------------------------------------------------------------------------------------------------------------
Fountain Square Commercial Funding Corp.
6.24%, 6/29/2000 17,566,000 17,389,233
------------------------------------------------------------------------------------------------------------------------
Scaldis Capital, LLC
6.08%-6.50%, 5/15/2000-9/20/2000 100,760,000 99,898,804
------------------------------------------------------------------------------------------------------------------------
Superior Funding Capital
6.10%-6.16%, 5/5/2000-6/1/2000 99,579,000 99,333,099
------------------------------------------------------------------------------------------------------------------------
Surrey Funding Corp.
6.05%, 5/9/2000 100,000,000 99,865,778
------------------------------------------------------------------------------------------------------------------------
Xerox Capital Corp.
6.07%*, 5/8/2000 10,000,000 9,997,777
------------------------------------------------------------------------------------------------------------------------
799,418,195
------------------------------------------------------------------------------------------------------------------------
Captive Business Lending -- 2.6%
California Pollution Control Financing Authority
6.06%, 5/12/2000 34,750,000 34,750,000
------------------------------------------------------------------------------------------------------------------------
Capital One Funding Corp.
6.20%*, 5/3/2000-5/4/2000 83,882,000 83,882,000
------------------------------------------------------------------------------------------------------------------------
Pemex Capital Inc.
6.25%, 7/5/2000 50,000,000 49,444,792
------------------------------------------------------------------------------------------------------------------------
168,076,792
------------------------------------------------------------------------------------------------------------------------
Consumer Lending -- 2.3%
American Home Products Corp.
5.97%*, 5/10/2000 50,000,000 50,000,000
------------------------------------------------------------------------------------------------------------------------
GMAC Mortgage Corporation of Pennsylvania
6.21%, 5/2/2000 30,000,000 29,994,849
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
Principal
Amount Value
------------------------------------------------------------------------------------------------------------------------
Household Finance, Corp.
6.20%-6.34%*, 5/1/2000-5/4/2000 $ 72,000,000 $ 72,008,481
------------------------------------------------------------------------------------------------------------------------
152,003,330
------------------------------------------------------------------------------------------------------------------------
Consumer Products and Services -- 2.5% Anheuser-Busch Inc.
5.92%*, 5/16/2000 40,000,000 39,995,469
------------------------------------------------------------------------------------------------------------------------
China Merchandise Inc.
6.08%, 5/24/2000 35,000,000 34,864,715
------------------------------------------------------------------------------------------------------------------------
SBC Communications, Inc.
6.13%, 6/12/2000 50,000,000 49,645,917
------------------------------------------------------------------------------------------------------------------------
SK Global America
6.08%, 5/23/2000 40,000,000 39,852,111
------------------------------------------------------------------------------------------------------------------------
164,358,212
------------------------------------------------------------------------------------------------------------------------
Diversified Finance -- 16.8%
Alpine Securitization Corp.
6.08%-6.20%, 5/10/2000-6/13/2000 100,000,000 99,558,875
------------------------------------------------------------------------------------------------------------------------
Amsterdam Funding Corp.
6.29%, 6/6/2000 50,000,000 49,687,500
------------------------------------------------------------------------------------------------------------------------
Barton Capital Corp.
6.07%, 5/23/2000 60,000,000 59,778,533
------------------------------------------------------------------------------------------------------------------------
CXC, Inc.
6.09%, 5/24/2000 100,000,000 99,614,111
------------------------------------------------------------------------------------------------------------------------
Enterprise Capital Funding Corp.
6.09%, 5/17/2000 66,787,000 66,607,417
------------------------------------------------------------------------------------------------------------------------
Four Winds Funding Corp.
6.24%-6.25%, 6/27/2000 55,000,000 54,464,439
------------------------------------------------------------------------------------------------------------------------
Galaxy Funding
6.17%-6.26%, 5/17/2000-7/10/2000 111,000,000 110,596,031
------------------------------------------------------------------------------------------------------------------------
General Electric Capital Corp.
6.26%, 7/7/2000 50,000,000 49,427,243
------------------------------------------------------------------------------------------------------------------------
Giro Funding US Corp.
6.01%, 5/1/2000 24,366,000 24,366,000
------------------------------------------------------------------------------------------------------------------------
Knight Ridder Inc.
6.17%, 6/5/2000 25,915,000 25,761,562
------------------------------------------------------------------------------------------------------------------------
Moat Funding LLC
6.08%-6.24%, 5/24/2000-7/6/2000 75,307,000 74,794,465
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
Principal
Amount Value
------------------------------------------------------------------------------------------------------------------------
Norwest Financial Inc.
6.15%*, 5/7/2000 $ 25,000,000 $ 24,994,799
------------------------------------------------------------------------------------------------------------------------
Petrobras, Inc. Finance Co.
6.05%-6.30%, 5/12/2000-6/13/2000 80,000,000 79,697,149
------------------------------------------------------------------------------------------------------------------------
Private Export Funding
6.25%, 7/10/2000 30,000,000 29,641,833
------------------------------------------------------------------------------------------------------------------------
Sinochem America Corp.
5.96%-6.16%, 5/4/2000-6/9/2000 49,300,000 49,157,709
------------------------------------------------------------------------------------------------------------------------
Toronto Dominion
6.14%, 6/19/2000 100,000,000 100,000,000
------------------------------------------------------------------------------------------------------------------------
Windmill Funding Corp.
6.07%-6.19%, 5/23/2000-6/19/2000 100,000,000 99,302,583
------------------------------------------------------------------------------------------------------------------------
1,097,450,249
------------------------------------------------------------------------------------------------------------------------
Financial Services -- 11.6%
Asset Portfolio Funding
6.21%-6.44%, 6/15/2000-9/19/2000 87,624,000 86,318,397
------------------------------------------------------------------------------------------------------------------------
Associates Corp.
6.03%*, 5/17/2000 75,000,000 74,947,758
------------------------------------------------------------------------------------------------------------------------
Forrestal Funding Master
6.12%, 5/23/2000 97,553,000 97,189,940
------------------------------------------------------------------------------------------------------------------------
Goldman Sachs Group, L.P.
6.13%*, 5/1/2000-5/3/2000 105,000,000 105,000,000
------------------------------------------------------------------------------------------------------------------------
Louis Dreyfus
6.14%, 5/10/2000 10,000,000 9,984,750
------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co.
6.11%*-6.14%, 5/22/2000-5/30/2000 110,000,000 109,989,318
------------------------------------------------------------------------------------------------------------------------
National Rural Utility
6.14%-6.13%*, 5/2/2000-6/25/2000 35,000,000 34,999,267
------------------------------------------------------------------------------------------------------------------------
Salomon Smith Barney Holdings
6.09%, 5/26/2000 100,000,000 99,579,862
------------------------------------------------------------------------------------------------------------------------
Sigma Finance
5.97%-6.32%*, 5/1/2000-7/14/2000 125,500,000 124,983,850
------------------------------------------------------------------------------------------------------------------------
TransAmerica Finance Corp.
6.20%*, 6/1/2000 20,000,000 20,000,000
------------------------------------------------------------------------------------------------------------------------
762,993,142
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
Principal
Amount Value
------------------------------------------------------------------------------------------------------------------------
Metals and Mining -- 1.3%
Banco de Galicia Y Bueno
6.23%-6.28%, 7/12/2000-7/18/2000 $ 85,000,000 $ 83,924,000
------------------------------------------------------------------------------------------------------------------------
83,924,000
------------------------------------------------------------------------------------------------------------------------
Municipal and State Obligations -- 1.1%
Oakland-Alameda County Coliseum, California
6.07%, 5/12/2000 48,750,000 48,750,000
------------------------------------------------------------------------------------------------------------------------
Texas, Veterans Housing Assistance, General Obligation
6.10%-6.15%*, 5/3/2000 19,755,000 19,755,000
------------------------------------------------------------------------------------------------------------------------
68,505,000
------------------------------------------------------------------------------------------------------------------------
Utilities -- 1.3%
Baltimore G & E
6.23%*, 5/14/2000 10,000,000 10,000,000
------------------------------------------------------------------------------------------------------------------------
Bell Atlantic Network
6.09%, 5/31/2000 41,500,000 41,290,771
------------------------------------------------------------------------------------------------------------------------
Brazos River Authority, Texas
6.08%, 5/23/2000 19,435,000 19,435,000
------------------------------------------------------------------------------------------------------------------------
Southern Cal Edison
6.24%*, 5/25/2000 15,000,000 15,000,000
------------------------------------------------------------------------------------------------------------------------
85,725,771
------------------------------------------------------------------------------------------------------------------------
Total Corporate Obligations (Cost $5,450,317,137) 5,450,317,137
------------------------------------------------------------------------------------------------------------------------
Bank Obligations -- 16.7%
------------------------------------------------------------------------------------------------------------------------
Certificates of Deposit and Bank Notes -- U.S. Banks -- 13.1%
Allfirst Bank
6.08%-6.18%*, 5/31/2000-6/6/2000 24,500,000 24,495,705
------------------------------------------------------------------------------------------------------------------------
American Express Centurian Bank
6.06%*, 5/24/2000 50,000,000 50,000,000
------------------------------------------------------------------------------------------------------------------------
Amsouth Bank
6.16%-6.22%*, 5/1/2000-6/11/2000 75,000,000 74,988,487
------------------------------------------------------------------------------------------------------------------------
Bank of America
6.17%*, 5/1/2000 75,000,000 75,000,000
------------------------------------------------------------------------------------------------------------------------
Comerica Bank
6.08%*, 5/14/2000 45,000,000 44,987,605
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
Principal
Amount Value
------------------------------------------------------------------------------------------------------------------------
CS First Boston, Inc.
6.22%*, 5/1/2000 $ 60,000,000 $ 60,000,000
------------------------------------------------------------------------------------------------------------------------
Dresdner US Finance, Inc.
6.11%*, 5/23/2000 60,000,000 59,994,633
------------------------------------------------------------------------------------------------------------------------
First National Bank of Maryland
6.09%*, 5/7/2000 25,500,000 25,491,012
------------------------------------------------------------------------------------------------------------------------
First Union National Bank
6.18%*, 5/1/2000 30,000,000 30,000,000
------------------------------------------------------------------------------------------------------------------------
First USA Bank
6.15%*, 6/2/2000 24,500,000 24,508,513
------------------------------------------------------------------------------------------------------------------------
Fleet National Bank
6.27%*, 5/5/2000 30,000,000 30,000,459
------------------------------------------------------------------------------------------------------------------------
J.P. Morgan & Co., Inc.
6.12%*, 5/3/2000-5/17/2000 97,000,000 97,000,000
------------------------------------------------------------------------------------------------------------------------
Key Bank Corp.
6.12%*, 5/8/2000 35,000,000 34,989,041
------------------------------------------------------------------------------------------------------------------------
Mellon Bank
6.09%*, 5/31/2000 15,000,000 14,998,512
------------------------------------------------------------------------------------------------------------------------
Merita Bank
6.07%*, 5/3/2000 50,000,000 49,983,755
------------------------------------------------------------------------------------------------------------------------
National City Cleveland
6.06%-6.11%*, 5/14/2000-5/22/2000 50,000,000 49,984,263
------------------------------------------------------------------------------------------------------------------------
PNC Bank, N.A.
6.08%-6.13%*, 5/13/2000-5/26/2000 25,000,000 24,998,522
------------------------------------------------------------------------------------------------------------------------
U.S. Bank, N.A.
6.05%-6.24%*, 5/1/2000-5/21/2000 90,000,000 89,988,648
------------------------------------------------------------------------------------------------------------------------
861,409,155
------------------------------------------------------------------------------------------------------------------------
Certificates of Deposit -- Foreign Banks -- 3.6%
Barclays Bank PLC
6.14%*, 5/1/2000 25,000,000 24,999,547
------------------------------------------------------------------------------------------------------------------------
National Bank of Canada
6.08%*, 5/22/2000 10,000,000 9,997,261
------------------------------------------------------------------------------------------------------------------------
Royal Bank of Scotland
6.06%-6.11%*, 5/6/2000-5/10/2000 90,500,000 90,490,148
------------------------------------------------------------------------------------------------------------------------
Skandinav Enskilda Bank
6.19%-6.29%*, 5/24/2000-5/29/2000 60,000,000 59,994,089
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
Principal
Amount Value
------------------------------------------------------------------------------------------------------------------------
Westdeutsche Landesbank
6.22%, 7/6/2000 $ 50,000,000 $ 50,000,000
------------------------------------------------------------------------------------------------------------------------
235,481,045
------------------------------------------------------------------------------------------------------------------------
Total Bank Obligations (Cost $1,096,890,200) 1,096,890,200
------------------------------------------------------------------------------------------------------------------------
Total Investments -- 100% (Cost $6,547,207,337) $6,547,207,337
------------------------------------------------------------------------------------------------------------------------
</TABLE>
Interest rates represent annualized yield to date of maturity, except for
variable rate demand securities described below.
(a) Cost for federal income tax purposes was $6,547,207,337.
* Variable rate securities. The rates shown are the current rates at April
30, 2000. The dates shown represent the demand date or the next interest
rate change date.
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
<TABLE>
<CAPTION>
Financial Statements
---------------------------------------------------------------------------------------------------------------------
Statement of Assets and Liabilities
---------------------------------------------------------------------------------------------------------------------
Money Market
as of April 30, 2000 Portfolio
---------------------------------------------------------------------------------------------------------------------
Assets
---------------------------------------------------------------------------------------------------------------------
Investments in securities, at value (for cost, see accompanying portfolio of investments):
---------------------------------------------------------------------------------------------------------------------
<S> <C>
Short-term notes $6,547,207,337
---------------------------------------------------------------------------------------------------------------------
Cash 98,406,383
---------------------------------------------------------------------------------------------------------------------
Interest receivable 11,492,267
---------------------------------------------------------------------------------------------------------------------
Due from Adviser 3,056,158
---------------------------------------------------------------------------------------------------------------------
Other assets 14,300
---------------------------------------------------------------------------------------------------------------------
Total assets 6,660,176,445
---------------------------------------------------------------------------------------------------------------------
Liabilities
---------------------------------------------------------------------------------------------------------------------
Notes payable 60,450,000
---------------------------------------------------------------------------------------------------------------------
Dividends payable 1,951,406
---------------------------------------------------------------------------------------------------------------------
Interest payable 33,374
---------------------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed 62,800,208
---------------------------------------------------------------------------------------------------------------------
Accrued distribution services fee 913,585
---------------------------------------------------------------------------------------------------------------------
Other accrued expenses and payables 7,855,189
---------------------------------------------------------------------------------------------------------------------
Total liabilities 134,003,762
---------------------------------------------------------------------------------------------------------------------
Net assets, at value $6,526,172,683
---------------------------------------------------------------------------------------------------------------------
Institutional Shares
---------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 182,974,482
---------------------------------------------------------------------------------------------------------------------
Shares outstanding of capital stock, $.01 par value, unlimited number of shares authorized 182,974,482
---------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share (net assets/shares outstanding) $ 1.00
---------------------------------------------------------------------------------------------------------------------
Premier Money Market Shares
---------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 11,358,784
---------------------------------------------------------------------------------------------------------------------
Shares outstanding of capital stock, $.01 par value, unlimited number of shares authorized 11,358,784
---------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share (net assets/shares outstanding) $ 1.00
---------------------------------------------------------------------------------------------------------------------
Premium Reserve Money Market Shares
---------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 16,932,129
---------------------------------------------------------------------------------------------------------------------
Shares outstanding of capital stock, $.01 par value, unlimited number of shares authorized 16,932,129
---------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share (net assets/shares outstanding) $ 1.00
---------------------------------------------------------------------------------------------------------------------
Service Shares
---------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $6,314,907,288
---------------------------------------------------------------------------------------------------------------------
Shares outstanding of capital stock, $.01 par value, unlimited number of shares authorized 6,314,907,288
---------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share (net assets/shares outstanding) $ 1.00
---------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
---------------------------------------------------------------------------------------------------------------------
Statement of Operations
---------------------------------------------------------------------------------------------------------------------
Money Market
Year ended April 30, 2000 Portfolio
---------------------------------------------------------------------------------------------------------------------
Investment Income
---------------------------------------------------------------------------------------------------------------------
Interest $ 281,601,165
---------------------------------------------------------------------------------------------------------------------
Expenses:
---------------------------------------------------------------------------------------------------------------------
Management fee 8,142,641
---------------------------------------------------------------------------------------------------------------------
Services to shareholders 12,711,819
---------------------------------------------------------------------------------------------------------------------
Custodian fees 229,722
---------------------------------------------------------------------------------------------------------------------
Distribution services fees 28,610,580
---------------------------------------------------------------------------------------------------------------------
Administrative services fees 96,079
---------------------------------------------------------------------------------------------------------------------
Auditing 72,820
---------------------------------------------------------------------------------------------------------------------
Legal 70,000
---------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 25,000
---------------------------------------------------------------------------------------------------------------------
Reports to shareholders 1,089,177
---------------------------------------------------------------------------------------------------------------------
Registration fees 1,103,997
---------------------------------------------------------------------------------------------------------------------
Interest expense 138,697
---------------------------------------------------------------------------------------------------------------------
Other 8,697
---------------------------------------------------------------------------------------------------------------------
Total expenses, before expense reductions 52,299,229
---------------------------------------------------------------------------------------------------------------------
Expense reductions (4,053,432)
---------------------------------------------------------------------------------------------------------------------
Total expenses, after expense reductions 48,245,797
---------------------------------------------------------------------------------------------------------------------
Net investment income 233,355,368
---------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 233,355,368
---------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets
---------------------------------------------------------------------------------------------------------------------
Money Market Portfolio
-----------------------------
Years Ended April 30,
2000 1999
---------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
---------------------------------------------------------------------------------------------------------------------
Operations:
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net investment income $ 233,355,368 $ 98,580,705
---------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 233,355,368 98,580,705
---------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income (233,355,368) (98,580,705)
---------------------------------------------------------------------------------------------------------------------
Fund share transactions at net asset value of $1.00 per share:
Institutional Shares:
---------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold 748,054,449 100,445
---------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 4,996,572 1,166
---------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed (570,178,147) (8)
---------------------------------------------------------------------------------------------------------------------
182,872,874 101,603
---------------------------------------------------------------------------------------------------------------------
Premier Money Market Shares (a):
---------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold 11,951,644 --
---------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 5,653 --
---------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed (598,513) --
---------------------------------------------------------------------------------------------------------------------
11,358,784 --
---------------------------------------------------------------------------------------------------------------------
Premium Reserve Money Market Shares:
---------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold 37,164,706 269,619
---------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 300,324 2,707
---------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed (20,804,478) (750)
---------------------------------------------------------------------------------------------------------------------
16,660,552 271,576
---------------------------------------------------------------------------------------------------------------------
Service Shares:
---------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold 46,591,548,249 21,381,309,146
---------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 199,345,248 96,946,180
---------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed (43,819,371,616) (20,129,926,507)
---------------------------------------------------------------------------------------------------------------------
2,971,521,881 1,348,328,819
---------------------------------------------------------------------------------------------------------------------
Premier Money Market Shares (closed):
---------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold 362 100,226
---------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 2,012 1,101
---------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed (103,701) --
---------------------------------------------------------------------------------------------------------------------
(101,327) 101,327
---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share transactions 3,182,312,764 1,348,803,325
---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 3,182,312,764 1,348,803,325
---------------------------------------------------------------------------------------------------------------------
Net assets at beginning of period 3,343,859,919 1,995,056,594
---------------------------------------------------------------------------------------------------------------------
Net assets at end of period $6,526,172,683 $3,343,859,919
---------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Premier Money Market Shares commenced operations on February 23, 2000.
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights
The following tables include selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements and market price data.
---------------------------------------------------------------------------------------------------------------------
Money Market Portfolio -- Institutional Shares
---------------------------------------------------------------------------------------------------------------------
Years ended April 30, 2000 1999(a)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Net investment income .05 .01
---------------------------------------------------------------------------------------------------------------------
Less distributions from net investment income (.05) (.01)
---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Total Return (%) (c) 5.50 1.29
---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 182,974 102
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) .29 .28
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) .25 .25
---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (%) 5.58 4.75
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Money Market Portfolio -- Premium Reserve Money Market Shares
---------------------------------------------------------------------------------------------------------------------
Years ended April 30, 2000 1999(a)
---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Net investment income .05 .01
---------------------------------------------------------------------------------------------------------------------
Less distributions from net investment income (.05) (.01)
---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Total Return (%) (b) 5.05 1.18**
---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 16,932 272
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) .68 .67*
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) .68 .67*
---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (%) 5.31 4.38*
---------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period January 22, 1999 (commencement of operations) to April 30,
1999.
(b) Total return would have been lower had certain expenses not been reduced.
* Annualized
** Not annualized
13
<PAGE>
Notes to Financial Statements
1. Significant Accounting Policies
Cash Account Trust (the "Fund") is registered under the Investment Company Act
of 1940, as amended (the "1940 Act"), as an open-end management investment
company organized as a Massachusetts business trust currently offering three
portfolios: Money Market Portfolio, Government Securities Portfolio and
Tax-Exempt Portfolio (the "Portfolios"). Money Market Portfolio offers four
classes of shares: Institutional, Premier Money Market, Premium Reserve Money
Market and Service. Effective November 16, 1999, the Board terminated the then
existing Premier Money Market Class. The Retail shares were renamed the Premium
Reserve Money Market shares effective December 29, 1999. Effective February 23,
2000, the Board created a new class of shares, the Premier Money Market Class.
Government Securities Portfolio currently offers two classes of shares: Premier
Money Market (effective March 1, 2000) and Service. Tax-Exempt Portfolio
currently offers four classes of shares: Premier Money Market (effective March
7, 2000), Managed (effective November 17, 1999), Institutional (effective
November 17, 1999) and Service. This report contains financial statements and
financial highlights for the Premium Reserve Money Market and Institutional
shares of the Money Market Portfolio.
Investment income, realized and unrealized gains and losses, and certain
fund-level expenses and expense reductions, if any, are borne pro rata on the
basis of relative net assets by the holders of all classes of shares except that
each class bears certain expenses unique to that class such as distribution
services, shareholder services, administrative services and certain other class
specific expenses. Differences in class expenses may result in payment of
different per share dividends by class. All shares of the Fund have equal rights
with respect to voting subject to class specific arrangements.
The Portfolio's financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management estimates.
The policies described below are followed consistently by the Portfolio in the
preparation of their financial statements.
Security Valuation. The Portfolio values all portfolio securities utilizing the
amortized cost method permitted in accordance with Rule 2a-7 under the 1940 Act
and pursuant to which the Portfolio must adhere to certain conditions. Under
this method, which does not take into account unrealized gains or losses on
securities, an instrument is initially valued at its cost and thereafter assumes
a constant accretion/ amortization to maturity of any discount/premium. All
other securities are valued at their fair value as determined in good faith by
the Valuation Committee of the Board of Trustees.
Repurchase Agreements. The Portfolio may enter into repurchase agreements with
certain banks and broker/dealers whereby the Portfolio, through its custodian or
sub-custodian bank, receives delivery of the underlying securities, the amount
of which at the time of purchase and each subsequent business day is required to
be maintained at such a level that the market value is equal to at least the
principal amount of the repurchase price plus accrued interest.
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 and tax-exempt income
to its shareholders. Accordingly, the Portfolio paid no
14
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federal income taxes and no federal income tax provision was required.
Distribution of Income and Gains. All of the net investment income of the
Portfolio is declared as a daily dividend and is distributed to shareholders
monthly. Net investment income includes all realized gains (losses) on portfolio
securities.
Investment Transactions and Investment Income. Investment transactions are
accounted for on the trade date. Interest income is recorded on the accrual
basis. Realized gains and losses from investment transactions are recorded on an
identified cost basis. All premiums and original issue discounts are
amortized/accreted for both tax and financial reporting purposes.
Expenses. Expenses arising in connection with a specific portfolio are allocated
to that Portfolio. Other Fund expenses are allocated between the Portfolios in
proportion to their relative net assets.
2. 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 0.22% of the first $500 million of average daily
net assets declining to 0.15% of average daily net assets in excess of $3
billion. During the year ended April 30, 2000, the Portfolios incurred
management fees as follows:
Management fees
------------------------------------------------------------------------------
Money Market Portfolio $ 8,142,641
------------------------------------------------------------------------------
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 0.60% of average daily net assets for the Service shares of
the Money Market Portfolio and 0.25% of average net assets for the Premier Money
Market shares pursuant to separate Rule 12b-1 plans for this Fund. For the year
ended April 30, 2000, the Portfolio incurred distribution services fees as
follows:
Distribution
services fees
-------------------------------------------------------------------------------
Money Market Portfolio (after $3,931,738 of expense waiver) $ 24,678,842
-------------------------------------------------------------------------------
The Fund has an administrative and shareholder services agreement with KDI for
providing information and administrative services to shareholders. The Premium
Reserve Money Market and Premier Money Market shares of the Portfolio pay KDI a
fee at an annual rate of up to 0.25% of average daily net assets. Institutional
shares of the Money Market Portfolio pay KDI a fee at an annual rate of up to
0.15% of average daily net assets. For the year ended April 30, 2000, the
Portfolio incurred administrative services fees as follows:
Administrative
services fees
------------------------------------------------------------------------------
Money Market Portfolio (after $54,767 of expense waiver) $ 41,312
------------------------------------------------------------------------------
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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, 2000, KSvC
received shareholder services fees as follows:
Shareholder
service fees
--------------------------------------------------------------------------------
Money Market Portfolio $ 11,380,698
--------------------------------------------------------------------------------
Officers and Trustees. Certain officers or trustees of the Fund are also
officers or directors of Scudder Kemper. During the year ended April 30, 2000,
the Portfolio made no payments to their 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 the following percentages of average daily net
assets: Money Market Portfolio Institutional shares (0.25%), Premier Money
Market, Premium Reserve Money Market and Service shares (1.00%). For the year
ended April 30, 2000, Scudder Kemper absorbed expenses as follows:
Expenses
absorbed by
Scudder Kemper
--------------------------------------------------------------------------------
Money Market Portfolio $ 3,986,505
--------------------------------------------------------------------------------
3. Expense Off-Set Arrangements
The Fund has entered into an arrangement with its custodian and transfer agent
whereby credits realized as a result of uninvested cash balances were used to
reduce a portion of the Portfolio's expenses. During the period, the Money
Market Portfolio custody and transfer agent fees were reduced as follows:
Custodian Transfer Agent
--------------------------------------------------------------------------------
Money Market Portfolio $ 34,722 $ 32,205
--------------------------------------------------------------------------------
4. Line of Credit
The Fund and several Kemper Funds (the "Participants") share in a $750 million
revolving credit facility for temporary or emergency purposes, including the
meeting of redemption requests that otherwise might require the untimely
disposition of securities. The Participants are charged an annual commitment fee
which is allocated pro rata among each of the Participants. Interest is
calculated based on the market rates at the time of the borrowing. The Portfolio
may borrow up to a maximum of 33 percent of its net assets under the agreement.
5. Borrowings
At April 30, 2000, the weighted average outstanding daily balance of all loans
for the Money Market Portfolio (based on the number of days the loans were
outstanding) was approximately $13,940,678, with an average interest rate of
6.56%. Interest expense for the year ended April 30, 2000 is $138,697. The
maximum borrowings outstanding during the year ended April 30, 2000 is
$60,450,000.
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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 -- Money Market Portfolio,
as of April 30, 2000, and the related statements of operations for the year then
ended and changes in net assets for each of the two years in the period then
ended, and the financial highlights for the fiscal periods indicated herein.
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 auditing standards generally accepted
in the United States. 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, 2000, 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 Cash
Account Trust -- Money Market Portfolio at April 30, 2000, 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 for the
fiscal periods indicated herein, in conformity with accounting principles
generally accepted in the United States.
Chicago, Illinois /s/Ernst & Young LLP
June 2, 2000
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[LOGO] KEMPER FUNDS
Kemper Distributors, Inc.
222 South Riverside Plaza
Chicago, IL 60606-5808
www.kemper.com
This report is not to be distributed unless preceded or accompanied by a
prospectus.
