October 31, 2000
Farmers
Money Market Portfolio:
Premium Reserve
Money Market Shares
Semiannual Report
A mutual fund seeking to provide maximum current income to the extent consistent
with stability of capital. The Fund invests exclusively in high quality money
market instruments.
[LOGO] FARMERS
FINANCIAL SERVICES
<PAGE>
Premium Reserve Money Market Shares
Date of Inception: 1/22/99 Total Net Assets as of 10/31/00: $9,533,724 thousand
Table of Contents
Letter to the Shareholders ................................................ 4
Investment Portfolio ...................................................... 5
Financial Statements ...................................................... 12
Financial Highlights ...................................................... 15
Notes to Financial Statements ............................................. 16
Officers and Trustees ..................................................... 20
3
<PAGE>
Letter to the Shareholders
Dear Shareholders,
We appreciate your decision to invest in the Money Market Portfolio: Premium
Reserve Money Market Shares. To provide you with an update of holdings, on the
following pages you'll find the Money Market Portfolio's semiannual report for
the year ended October 31, 2000. Included are the financial highlights for the
Premium Reserve Money Market Shares.
Briefly, for the year ending October 31, 2000 the Portfolio registered
performance and achieved its stated objective of providing maximum current
income while maintaining stability of principal.
Portfolio Results
As of October 31, 2000
--------------------------------------------------------------------------------
Annualized Net Yield
--------------------------------
12-Month Current 7-Day
--------------------------------
Premium Reserve Money Market Shares 6.06% 6.08%
-------------------------------------------------------------------------------
Thank you for your investment. We look forward to serving your investment needs
for years to come.
/s/Frank Rachwalski
Frank Rachwalski
Vice President and Lead Portfolio Manager
November 1, 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.
4
<PAGE>
Investment Portfolio as of October 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
---------------------------------------------------------------------------------------
<S> <C> <C>
Commercial Paper -- 78.1%
---------------------------------------------------------------------------------------
Ace Overseas Corp.
6.61%, 12/11/2000 $ 76,700,000 $ 76,146,056
---------------------------------------------------------------------------------------
Allfirst Bank
6.62%*, 11/16/2000 45,000,000 44,997,299
---------------------------------------------------------------------------------------
American Honda Finance Corp.
6.62%*, 11/10/2000-11/23/2000 115,000,000 115,000,000
---------------------------------------------------------------------------------------
Asset Portfolio Funding
6.61%, 12/18/2000 100,000,000 99,151,389
---------------------------------------------------------------------------------------
Associates Corp.
6.52%-6.66%*, 11/17/2000-12/26/2000 175,000,000 174,306,516
---------------------------------------------------------------------------------------
AT & T Corp.
6.64%-6.72%, 2/14/2001-4/11/2001 123,500,000 120,538,539
---------------------------------------------------------------------------------------
Atlantis One Funding
6.68%-6.78%, 1/25/2001-2/26/2001 183,745,000 180,503,423
---------------------------------------------------------------------------------------
Banc One Australia
6.72%, 1/4/2001 20,000,000 19,764,978
---------------------------------------------------------------------------------------
Banco Bradesco
6.60%, 11/14/2000 50,000,000 49,882,097
---------------------------------------------------------------------------------------
Banco de Galicia y Buenos Aires S.A.
6.66%-6.69%, 3/20/2001-3/23/2001 90,000,000 87,730,888
---------------------------------------------------------------------------------------
Bank of America Corp.
6.78%, 1/11/2001 100,000,000 98,700,306
---------------------------------------------------------------------------------------
Bank One Corp.
6.80%-7.17%*, 11/4/2000-5/8/2001 60,000,000 59,999,990
---------------------------------------------------------------------------------------
Barclays US Funding Corp.
6.65%, 2/15/2001 100,000,000 98,084,639
---------------------------------------------------------------------------------------
Barton Capital Corp.
6.54%, 11/8/2000 50,000,000 49,936,708
---------------------------------------------------------------------------------------
Bavaria Finance Funding
6.68%-6.70%, 1/8/2001-1/26/2001 21,398,000 21,097,378
---------------------------------------------------------------------------------------
Bavaria Universal Funding
6.56%-6.60%, 11/15/2000-11/17/2000 70,311,000 70,119,770
---------------------------------------------------------------------------------------
Blue Ridge Asset Funding
6.55%, 11/17/2000-11/21/2000 117,882,000 117,487,222
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
Principal
Amount Value
------------------------------------------------------------------------------------
British Gas Capital, Inc.
6.68%, 1/17/2001 $ 50,000,000 $ 49,299,514
------------------------------------------------------------------------------------
British Telecommunications PLC
6.71%-6.85%*, 1/9/2001-2/21/2001 182,000,000 179,343,086
------------------------------------------------------------------------------------
California Pollution Control Financing Authority
6.60%, 12/8/2000 39,750,000 39,750,000
------------------------------------------------------------------------------------
Capital One Funding Corp.
6.65%*, 11/1/2000-11/2/2000 81,805,893 81,805,893
------------------------------------------------------------------------------------
Caterpillar Financial Services
6.69%-6.90%*, 11/1/2000-1/16/2001 155,000,000 155,102,640
------------------------------------------------------------------------------------
Chrysler Financing Company, LLC
6.71%*, 11/16/2000 13,000,000 13,002,800
------------------------------------------------------------------------------------
CIT Group Holdings, Inc.
6.64%-6.79%*, 11/1/2000-1/16/2001 188,000,000 187,945,231
------------------------------------------------------------------------------------
COFCO Capital Corp.
6.59%, 11/14/2000 35,000,000 34,917,594
------------------------------------------------------------------------------------
Comerica Bank
6.54%*, 11/14/2000 40,000,000 39,992,650
------------------------------------------------------------------------------------
Commerz Europe (Ireland)
6.71%-6.73%, 1/11/2001-1/22/2001 180,000,000 177,547,289
------------------------------------------------------------------------------------
Corporate Receivables Corp.
6.70%, 1/19/2001 50,000,000 49,280,222
------------------------------------------------------------------------------------
CSN Overseas
6.57%-6.65%, 11/29/2000-12/5/2000 61,494,000 61,147,764
------------------------------------------------------------------------------------
CXC, Inc.
6.70%, 1/22/2001 80,000,000 78,804,622
------------------------------------------------------------------------------------
Den Danske Corp.
6.68%, 1/5/2001 81,000,000 80,039,138
------------------------------------------------------------------------------------
Eureka Securitization, Inc.
6.54%-6.55%, 11/1/2000-11/9/2000 100,000,000 99,927,556
------------------------------------------------------------------------------------
Fleet National Bank
6.74%*, 11/21/2000 40,000,000 40,036,485
------------------------------------------------------------------------------------
Ford Motor Credit Co.
6.60%-6.92%*, 11/24/2000-1/16/2001 59,000,000 59,038,720
------------------------------------------------------------------------------------
Forrestal Funding Master
6.64%-6.72%, 1/29/2001-2/21/2001 173,227,000 169,877,981
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
Principal
Amount Value
------------------------------------------------------------------------------------
Fortune Brands, Inc.
6.54%-6.62%, 11/21/2000-11/22/2000 $ 25,000,000 $ 24,906,194
------------------------------------------------------------------------------------
Four Winds Funding Corp.
6.54%-6.66%, 11/7/2000-2/1/2001 172,000,000 169,465,297
------------------------------------------------------------------------------------
France Telecom SA
6.54%-6.72%, 11/16/2000-2/27/2001 148,040,000 146,083,908
------------------------------------------------------------------------------------
Galaxy Funding
6.69%-6.89%, 12/7/2000-2/5/2001 176,165,000 174,309,136
------------------------------------------------------------------------------------
Giro Funding US Corp.
6.65%-6.70%, 1/9/2001-3/19/2001 217,432,000 213,501,678
------------------------------------------------------------------------------------
Girsa Funding Corp.
6.65%, 4/23/2001 60,000,000 58,141,331
------------------------------------------------------------------------------------
GMAC Mortgage Corporation of Pennsylvania
6.77%*, 1/27/2001 37,000,000 36,999,871
------------------------------------------------------------------------------------
Goldman Sachs Group, L.P.
6.79%-6.81%*, 12/27/2000-1/24/2001 70,000,000 70,046,119
------------------------------------------------------------------------------------
Goldman Sachs Promissory Note
6.62%-6.86%*, 11/1/2000-11/6/2000 105,000,000 105,019,177
------------------------------------------------------------------------------------
Greenwich Funding Corp.
6.61%-6.69%, 12/6/2000-1/5/2001 178,406,000 177,111,740
------------------------------------------------------------------------------------
Household Finance Corp.
6.71%-6.91%*, 12/26/2000-1/20/2001 143,000,000 143,095,337
------------------------------------------------------------------------------------
HVB Finance
6.74%, 1/16/2001 100,000,000 98,617,222
------------------------------------------------------------------------------------
International Securitization Corp.
6.64%, 11/30/2000 25,000,000 24,868,493
------------------------------------------------------------------------------------
Intrepid Funding Corp.
6.61%-6.68%, 12/7/2000-2/16/2001 181,546,000 179,702,096
------------------------------------------------------------------------------------
Jupiter Securities Corp.
6.67%-6.71%, 1/2/2001-1/29/2001 111,303,000 109,663,399
------------------------------------------------------------------------------------
Jupiter Securitization
6.60%, 1/4/2001 43,836,000 43,321,658
------------------------------------------------------------------------------------
Merrill Lynch & Co.
6.60%-6.69%*, 11/12/2000-11/30/2000 175,000,000 175,036,792
------------------------------------------------------------------------------------
Moat Funding LLC
6.56%-6.84%, 11/29/2000-5/15/2001 185,139,000 182,433,958
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
Principal
Amount Value
------------------------------------------------------------------------------------
Monte Rosa Capital Corp.
6.58%-6.72% , 11/13/2000-1/10/2001 $ 90,727,000 $ 90,031,710
------------------------------------------------------------------------------------
Moriarty LLC
6.70%-6.71%, 1/17/2001-1/23/2001 175,000,000 172,427,403
------------------------------------------------------------------------------------
NATC California LLC
6.55%, 1/25/2001 70,000,000 68,917,431
------------------------------------------------------------------------------------
National Bank of Canada
6.65%-6.70%, 1/16/2001-1/24/2001 95,000,000 93,575,444
------------------------------------------------------------------------------------
National Rural Utility
6.73%* , 1/20/2001 170,000,000 170,000,000
------------------------------------------------------------------------------------
Nordebanken North America
6.75%, 1/5/2001 25,000,000 24,703,438
------------------------------------------------------------------------------------
Northern Rock PLC
6.75%, 1/22/2001 50,000,000 49,252,889
------------------------------------------------------------------------------------
Oakland-Alameda County Coliseum, California
6.55%, 11/13/2000 37,300,000 37,300,000
------------------------------------------------------------------------------------
Old Kent Bank
6.64%-6.67%* , 11/1/2000-7/3/2001 75,000,000 74,992,179
------------------------------------------------------------------------------------
Old Line Funding Corp.
6.57%, 11/17/2000 20,000,000 19,942,044
------------------------------------------------------------------------------------
Omnicom Finance, Inc.
6.54%, 11/6/2000-11/21/2000 115,000,000 114,720,139
------------------------------------------------------------------------------------
Pacific Gas and Electric
6.65%, 1/12/2001-1/19/2001 73,000,000 71,981,162
------------------------------------------------------------------------------------
Preferred Receivables Funding Corp.
6.54%, 11/27/2000 56,098,000 55,834,651
------------------------------------------------------------------------------------
Private Export Funding
6.62%, 4/26/2001 25,000,000 24,217,778
------------------------------------------------------------------------------------
Prudential Funding Corp.
6.67%-6.73%*, 12/18/2000-1/18/2001 125,000,000 123,816,132
------------------------------------------------------------------------------------
Quincy Capital Corp.
6.55%-6.59%, 11/6/2000-12/14/2000 185,363,000 184,559,247
------------------------------------------------------------------------------------
Royal Bank of Scotland
6.55%*, 11/10/2000 20,500,000 20,498,241
------------------------------------------------------------------------------------
Scaldis Capital, LLC
6.63%-6.98%, 11/29/2000-3/27/2001 156,758,000 154,596,826
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
Principal
Amount Value
------------------------------------------------------------------------------------
Sheffield Receivables Corp.
6.55%, 11/2/2000 $ 100,000,000 $ 99,981,889
------------------------------------------------------------------------------------
Sigma Finance
6.62%-6.87%*, 11/3/2000-2/12/2001 134,275,000 132,587,953
------------------------------------------------------------------------------------
SMM Trust 1999-A
6.64%*, 11/13/2000 105,000,000 105,000,000
------------------------------------------------------------------------------------
Southern California Edison
6.67%, 2/2/2001 20,000,000 19,662,100
------------------------------------------------------------------------------------
Spintab AB
6.78%, 12/14/2000 57,750,000 57,294,738
------------------------------------------------------------------------------------
Stellar Funding Group
6.91%, 12/15/2000 47,759,000 47,368,782
------------------------------------------------------------------------------------
Superior Funding Capital
6.56%-6.64%, 11/30/2000-1/8/2001 52,098,000 51,631,432
------------------------------------------------------------------------------------
Surrey Funding Corp.
6.57%, 11/3/2000 131,567,000 131,519,197
------------------------------------------------------------------------------------
Texas Veterans Housing Assistance, General Obligation
6.60%*, 11/1/2000 19,755,000 19,755,000
------------------------------------------------------------------------------------
TransAmerica Finance Corp.
6.78%*, 12/1/2000 20,000,000 20,000,000
------------------------------------------------------------------------------------
Xerox Capital Corp.
6.69%*, 11/8/2000 10,000,000 9,999,628
------------------------------------------------------------------------------------
WCP Funding, Inc.
6.60%, 12/5/2000 35,000,000 34,785,139
------------------------------------------------------------------------------------
Total Commercial Paper (Cost $7,493,582,361) 7,493,582,361
------------------------------------------------------------------------------------
Certificates of Deposit and Bank Notes -- 21.9%
------------------------------------------------------------------------------------
Abbey National Bank
6.73%, 1/22/2001 50,000,000 50,000,000
------------------------------------------------------------------------------------
Allfirst Bank
6.57%-6.62%*, 11/10/2000-11/30/2000 100,000,000 99,998,904
------------------------------------------------------------------------------------
American Express Centurian Bank
6.58%-6.67%*, 11/1/2000-11/23/2000 157,000,000 156,993,731
------------------------------------------------------------------------------------
Amsouth Bank
6.72%*, 11/1/2000 40,000,000 39,996,667
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
Principal
Amount Value
------------------------------------------------------------------------------------
Bank of America
6.67%*, 11/1/2000 $ 75,000,000 $ 75,000,000
------------------------------------------------------------------------------------
Canadian Imperial Bank of Commerce
7.18%, 5/10/2001 50,000,000 49,997,540
------------------------------------------------------------------------------------
CIBC New York
6.58%*, 11/1/2000 125,000,000 124,940,648
------------------------------------------------------------------------------------
CIT Group Holdings, Inc.
6.61%*, 12/6/2000 15,000,000 14,995,659
------------------------------------------------------------------------------------
Comerica Bank
6.57%-6.66%*, 11/1/2000-11/12/2000 115,000,000 114,985,093
------------------------------------------------------------------------------------
Commerzbank AG New York
6.57%*, 11/3/2000 125,000,000 124,962,296
------------------------------------------------------------------------------------
CS First Boston, Inc.
6.61%*, 11/20/2000 100,000,000 100,000,000
------------------------------------------------------------------------------------
Dresdner US Finance, Inc.
7.22%, 5/8/2001 50,000,000 49,995,134
------------------------------------------------------------------------------------
FCC National
6.71%*, 12/2/2000 50,000,000 50,006,675
------------------------------------------------------------------------------------
First Union National Bank
6.67%-6.69%*, 11/1/2000 170,000,000 170,000,000
------------------------------------------------------------------------------------
Fleet National Bank
6.56%*, 11/20/2000 110,000,000 109,964,642
------------------------------------------------------------------------------------
Harris Trust and Savings Bank
6.56%*, 11/12/2000 45,000,000 44,989,003
------------------------------------------------------------------------------------
Household Finance Corp.
6.82%*, 11/4/2000 25,000,000 25,011,479
------------------------------------------------------------------------------------
J.P. Morgan & Co., Inc.
6.61%*, 11/17/2000 70,000,000 70,000,000
------------------------------------------------------------------------------------
Key Bank Corp.
6.63%-6.68%*, 11/8/2000-11/25/2000 100,000,000 99,986,441
------------------------------------------------------------------------------------
Merita Bank
6.56%-6.62%*, 11/3/2000-11/29/2000 95,000,000 94,993,587
------------------------------------------------------------------------------------
National Bank of Canada
6.68%*, 11/22/2000 10,000,000 9,999,719
------------------------------------------------------------------------------------
National City Bank of Cleveland
6.57%-6.79%*, 11/22/2000-1/5/2001 45,000,000 45,002,185
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
Principal
Amount Value
------------------------------------------------------------------------------------
Old Kent Bank
6.66%-6.67%*, 11/1/2000 $ 85,000,000 $ 84,998,741
------------------------------------------------------------------------------------
Royal Bank of Scotland
6.60%*, 11/6/2000 70,000,000 70,000,000
------------------------------------------------------------------------------------
U.S. Bank, N.A.
6.63%-6.74%*, 11/1/2000-11/21/2000 170,000,000 169,996,797
------------------------------------------------------------------------------------
Wells Fargo
6.69%, 1/17/2001 50,000,000 50,000,000
------------------------------------------------------------------------------------
Total Certificates of Deposit and Bank Notes (Cost $2,096,814,941) 2,096,814,941
------------------------------------------------------------------------------------
Total Investment Portfolio -- 100.0% (Cost $9,590,397,302) (a) $9,590,397,302
------------------------------------------------------------------------------------
</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 $9,590,397,302.
* Variable rate securities. The rates shown are the current rates at
October 31, 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.
11
<PAGE>
Financial Statements
Statements of Assets and Liabilities
<TABLE>
<CAPTION>
as of October 31, 2000 (Unaudited)
------------------------------------------------------------------------------------
<S> <C>
Assets
------------------------------------------------------------------------------------
Investments in securities, at value (for cost, see accompanying portfolio of
investments):
------------------------------------------------------------------------------------
Short-term notes $9,590,397,302
------------------------------------------------------------------------------------
Cash --
------------------------------------------------------------------------------------
Interest receivable 29,500,467
----------------
------------------------------------------------------------------------------------
Total assets 9,619,897,769
------------------------------------------------------------------------------------
Liabilities
------------------------------------------------------------------------------------
Due to custodian bank 29,923,486
------------------------------------------------------------------------------------
Dividends payable 48,489,311
------------------------------------------------------------------------------------
Accrued management fee 2,099,945
------------------------------------------------------------------------------------
Other accrued expenses and payables 5,660,650
----------------
------------------------------------------------------------------------------------
Total liabilities 86,173,392
------------------------------------------------------------------------------------
Net assets, at value $9,533,724,377
------------------------------------------------------------------------------------
Institutional Shares
------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 611,798,492
------------------------------------------------------------------------------------
Shares outstanding of capital stock, $.01 par value, unlimited
number of shares authorized 611,798,492
------------------------------------------------------------------------------------
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 $1,848,273,196
------------------------------------------------------------------------------------
Shares outstanding of capital stock, $.01 par value, unlimited
number of shares authorized 1,848,273,196
------------------------------------------------------------------------------------
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 $ 54,327,286
------------------------------------------------------------------------------------
Shares outstanding of capital stock, $.01 par value, unlimited
number of shares authorized 54,327,286
------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share (net
assets/shares outstanding) $ 1.00
------------------------------------------------------------------------------------
Service Shares
------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $7,019,325,403
------------------------------------------------------------------------------------
Shares outstanding of capital stock, $.01 par value, unlimited
number of shares authorized 7,019,325,403
------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share (net
assets/shares outstanding) $ 1.00
------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
Statement of Operations
<TABLE>
<CAPTION>
Six months ended October 31, 2000 (Unaudited)
<S> <C>
------------------------------------------------------------------------------------
Investment Income
------------------------------------------------------------------------------------
Interest $ 282,730,201
----------------
------------------------------------------------------------------------------------
Expenses:
------------------------------------------------------------------------------------
Management fee 6,708,011
------------------------------------------------------------------------------------
Services to shareholders 12,165,935
------------------------------------------------------------------------------------
Custodian fees 481,573
------------------------------------------------------------------------------------
Distribution services fees 22,077,035
------------------------------------------------------------------------------------
Administrative services fees 1,672,546
------------------------------------------------------------------------------------
Auditing 31,088
------------------------------------------------------------------------------------
Legal 33,346
------------------------------------------------------------------------------------
Trustees' fees and expenses 89,837
------------------------------------------------------------------------------------
Reports to shareholders 590,007
------------------------------------------------------------------------------------
Registration fees 1,202,358
------------------------------------------------------------------------------------
Other 281,372
----------------
------------------------------------------------------------------------------------
Total expenses, before expense reductions 45,333,108
------------------------------------------------------------------------------------
Expense reductions (4,246,419)
----------------
------------------------------------------------------------------------------------
Total expenses, after expense reductions 41,086,689
------------------------------------------------------------------------------------
Net investment income 241,643,512
------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 241,643,512
------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
October 31, April 30,
2000 (Unaudited) 2000
------------------------------------------------------------------------------------
<S> <C> <C>
Increase (Decrease) in Net Assets
------------------------------------------------------------------------------------
Operations:
------------------------------------------------------------------------------------
Net investment income $ 241,643,512 $ 233,355,368
-------------- ---------------
------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 241,643,512 233,355,368
-------------- ---------------
------------------------------------------------------------------------------------
Distributions to shareholders from net investment
income (241,643,512) (233,355,368)
-------------- ---------------
------------------------------------------------------------------------------------
Fund share transactions at net asset value of $1.00 per share:
Institutional Shares:
------------------------------------------------------------------------------------
Proceeds from shares sold 1,193,567,112 748,054,449
------------------------------------------------------------------------------------
Reinvestment of distributions 6,730,006 4,996,572
------------------------------------------------------------------------------------
Cost of shares redeemed (771,473,108) (570,178,147)
-------------- ---------------
------------------------------------------------------------------------------------
428,824,010 182,872,874
------------------------------------------------------------------------------------
Premier Money Market Shares (a):
------------------------------------------------------------------------------------
Proceeds from shares sold 2,334,119,171 11,951,644
------------------------------------------------------------------------------------
Reinvestment of distributions 26,789,042 5,653
------------------------------------------------------------------------------------
Cost of shares redeemed (523,993,801) (598,513)
-------------- ---------------
------------------------------------------------------------------------------------
1,836,914,412 11,358,784
------------------------------------------------------------------------------------
Premium Reserve Money Market Shares:
------------------------------------------------------------------------------------
Proceeds from shares sold 71,088,124 37,164,706
------------------------------------------------------------------------------------
Reinvestment of distributions 688,812 300,324
------------------------------------------------------------------------------------
Cost of shares redeemed (34,381,779) (20,804,478)
-------------- ---------------
------------------------------------------------------------------------------------
37,395,157 16,660,552
------------------------------------------------------------------------------------
Service Shares:
------------------------------------------------------------------------------------
Proceeds from shares sold 24,732,599,058 46,591,548,249
------------------------------------------------------------------------------------
Reinvestment of distributions 186,135,342 199,345,248
------------------------------------------------------------------------------------
Cost of shares redeemed (24,214,316,285)(43,819,371,616)
-------------- ---------------
------------------------------------------------------------------------------------
704,418,115 2,971,521,881
------------------------------------------------------------------------------------
Premier Money Market Shares (closed):
------------------------------------------------------------------------------------
Proceeds from shares sold -- 362
------------------------------------------------------------------------------------
Reinvestment of distributions -- 2,012
------------------------------------------------------------------------------------
Cost of shares redeemed -- (103,701)
-------------- ---------------
------------------------------------------------------------------------------------
-- (101,327)
-------------- ---------------
------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund
share transactions 3,007,551,694 3,182,312,764
------------------------------------------------------------------------------------
Increase (decrease) in net assets 3,007,551,694 3,182,312,764
------------------------------------------------------------------------------------
Net assets at beginning of period 6,526,172,683 3,343,859,919
------------------------------------------------------------------------------------
Net assets at end of period $9,533,724,377 $6,526,172,683
------------------------------------------------------------------------------------
</TABLE>
(a) Premier Money Market Shares commenced operations on February 23, 2000.
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
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.
<TABLE>
<CAPTION>
Years ended April 30, 2000(a) 2000 1999(b)
------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 1.00 1.00 1.00
------------------------------------------------------------------------------------
Net investment income .03 .05 .01
------------------------------------------------------------------------------------
Less distributions from net investment
income (.03) (.05) (.01)
------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00
------------------------------------------------------------------------------------
Total Return (%) (c) 3.05** 5.05 1.18**
------------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 54,327 16,932 272
------------------------------------------------------------------------------------
Ratio of expenses before expense
reductions (%) .54* .68 .67*
------------------------------------------------------------------------------------
Ratio of expenses after expense
reductions (%) .54* .68 .67*
------------------------------------------------------------------------------------
Ratio of net investment income (%) 6.15* 5.31 4.38*
------------------------------------------------------------------------------------
</TABLE>
(a) For the six months ended October 31, 2000 (Unaudited).
(b) For the period January 22, 1999 (commencement of operations) to April 30,
1999.
(c) Total return would have been lower had certain expenses not been reduced.
* Annualized
** Not annualized
15
<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 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 accounting
principles generally accepted in the United States which require the use of
management estimates. The policies described below are followed consistently by
the Portfolio in the preparation of its 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
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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 federal income taxes and
no federal income tax provision was required.
Distribution of Income and Gains. All of the net investment income of each
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 of the portfolio declining to 0.15% of average daily net assets
of the portfolio in excess of $3 billion. During the six months ended October
31, 2000, the Portfolio incurred management fees as follows:
Management Effective
fees rate
--------------------------------------------------------------------------------
Money Market Portfolio $ 6,708,011 .16%
--------------------------------------------------------------------------------
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
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pursuant to separate Rule 12b-1 plans for this Fund. For the six months ended
October 31, 2000, the Portfolio incurred distribution services fees as follows:
Distribution
services fees
--------------------------------------------------------------------------------
Money Market Portfolio
(after $4,130,749 of expense waiver) $ 17,946,286
--------------------------------------------------------------------------------
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 six months ended October 31, 2000,
the Portfolio incurred administrative services fees as follows:
Administrative
services fees
--------------------------------------------------------------------------------
Money Market Portfolio (after $70,311 of expense waiver) $ 1,602,235
--------------------------------------------------------------------------------
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 six months ended October 31, 2000,
KSvC received shareholder services fees as follows:
Shareholder
services fees
--------------------------------------------------------------------------------
Money Market Portfolio $ 10,465,636
--------------------------------------------------------------------------------
Officers and Trustees. Certain officers or trustees of the Fund are also
officers or directors of Scudder Kemper. During the six months ended October 31,
2000, the Portfolio made no payments to its officers and incurred Trustees' fees
to independent Trustees as follows:
Trustees' fees
--------------------------------------------------------------------------------
Money Market Portfolio $ 89,837
--------------------------------------------------------------------------------
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
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Reserve Money Market and Service shares (1.00%). For the six months ended
October 31, 2000, Scudder Kemper did not absorb any expenses.
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 $ 8,616 $ 36,744
--------------------------------------------------------------------------------
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.
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Officers and Trustees
Kathryn L. Quirk*
Chairperson, Assistant Secretary and Trustee
Dr. Rosita P. Chang
Trustee; Professor of Finance,
University of Hawaii
Edgar R. Fiedler
Trustee; Senior Fellow and Economic Counsellor,
The Conference Board, Inc.
Dr. J. D. Hammond
Trustee; Dean Emeritus, Smeal College of Business Administration,
Pennsylvania State University
Richard M. Hunt
Trustee; University Marshal and Senior Lecturer,
Harvard University
Brian Cohen
President, Farmers Investment Trust
Frank J. Rachwalski, Jr.*
Vice President
John Millette*
Vice President and Secretary
John R. Hebble*
Treasurer
Caroline Pearson*
Assistant Secretary
* Scudder Kemper Investments, Inc.
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Farmers Financial Solutions -- helping you get to where you want to be.
Working with your Farmers agent* to better understand your financial needs,
clarify your goals, and develop steps you can take towards those goals.
*The securities are offered through your agent, a registered representative of
Farmers Financial Solutions, LLC.
Scudder Kemper Investments is the adviser to Farmers Money Market Portfolio.
Scudder Kemper Investments has over 80 years of money management experience and
offers a full range of investment counsel and asset management capabilities,
based on a combination of proprietary research and disciplined long-term
investment strategies. Scudder Kemper Investments manages more than $290 billion
in assets globally for mutual fund investors, retirement and pension plans,
institutional and corporate clients, insurance companies, and private family and
individual accounts.
This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
Kemper Distributors, Inc. is the principal underwriter of Farmers Money Market
Portfolio.
Farmers Financial Services is not a separate entity and neither it nor Farmers
is engaged in the business of providing investment advice and is not registered
as an investment adviser or broker/dealer under the federal securities laws.
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