SEMIANNUAL REPORT
--------------------------------------------------------------------------------
Cash Account
Trust
October 31, 2000
Service Shares
o Money Market Portfolio
o Government Securities
Portfolio
o Tax-Exempt Portfolio
Principal Underwriter
Kemper Distributors, Inc.
222 S. Riverside Plaza
Chicago, IL 60606
This report is not to be distributed unless preceded or accompanied by a Cash
Account Trust prospectus.
<PAGE>
Dear Shareholder:
We appreciate your decision to invest in Cash Account Trust. To provide you with
an update of holdings, on the following pages you'll find the fund's semiannual
report for the six-month period ended October 31, 2000. Also included are the
financial highlights for the Cash Account Trust of the following portfolios:
o Money Market Portfolio
o Government Securities Portfolio
o Tax-Exempt Portfolio
Briefly, for the past six months ending October 31, 2000 the fund's portfolios
registered performance and achieved their stated objectives of providing maximum
current income while maintaining stability of principal.
Economic Review and Outlook
During the past three months expectations of both a growth slowdown and an end
to the path of tightening monetary conditions became more entrenched. Economic
data, with few exceptions, supported these perceptions of a soft landing and the
forward yield curve suggested a possible ease in the first quarter of 2001.
Nevertheless, the wild card of inflation remained difficult to dismiss. Core CPI
as measured on a year over year basis is in an uptrend, and energy and some
agricultural prices have risen. In this context, short-term instruments traded
rich to 6.5% Federal Funds target, and the yield curve flattened with the pickup
extension from one to twelve months declining from 40 to 20 basis points.
We favored lengthening given attractive market opportunities. The flatness of
the yield curve was a limiting concern; nevertheless selected purchases into
2001 were made, but we primarily concentrated in maturities under 90 days.
Issuance of variable and floating rate instruments was light, but some purchases
of more attractively priced issues were made. Average life modestly lengthened.
It appears the unfolding economic scenario will be marked by both softer growth
and developing inflationary pressures. We believe any slowdown should be modest.
Consumers are highly confident, as gauged by firm housing data and strengthening
personal consumption expenditures, and remain encouraged by tight labor markets.
On the other hand, the Fed is very sensitive to inflation, particularly any
incipient wage pressure, because any growth slowdown may damage labor
productivity, a critical driver of this successful economic run. Under these
conditions, we believe the Fed is on hold for the balance of the year.
Accordingly, we will remain cautious but lengthen as opportunities arise.
However, average maturity will be maintained shorter than the reported average
for peer funds.
Portfolio Performance
As of October 31, 2000
--------------------------------------------------------------------------------
Service Shares
--------------------------------------------------------------------------------
7-Day
Current Yield
--------------------------------------------------------------------------------
Money Market Portfolio 5.74%
--------------------------------------------------------------------------------
Government Securities Portfolio 5.75%
--------------------------------------------------------------------------------
Tax-Exempt Portfolio 3.47%
--------------------------------------------------------------------------------
(Equivalent Taxable Yield) 5.52%
--------------------------------------------------------------------------------
Thank you again for your investment. We look forward to serving your investment
needs for years to come.
Frank J. 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 Portfolios' net yields are the sum of the daily dividend rates for the
period.
The equivalent taxable yield allows you to compare with the performance of
taxable money market funds. For the Tax-Exempt Portfolio, the equivalent taxable
yield is based upon the marginal income tax rate of 37.1%. Income may be subject
to local taxes and for some investors, the alternative minimum tax.
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>
Portfolio of Investments at October 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Money Market Portfolio
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
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
Blue Ridge Asset Funding
6.55%, 11/17/2000-11/21/2000 $ 117,882,000 $ 117,487,222
---------------------------------------------------------------------------------------------------------------------
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
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
Forrestal Funding Master
6.64%-6.72%, 1/29/2001-2/21/2001 $ 173,227,000 $ 169,877,981
---------------------------------------------------------------------------------------------------------------------
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
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
Moat Funding LLC
6.56%-6.84%, 11/29/2000-5/15/2001 $ 185,139,000 $ 182,433,958
---------------------------------------------------------------------------------------------------------------------
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
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
Scaldis Capital, LLC
6.63%-6.98%, 11/29/2000-3/27/2001 $ 156,758,000 $ 154,596,826
---------------------------------------------------------------------------------------------------------------------
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
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
Amsouth Bank
6.72%*, 11/1/2000 $ 40,000,000 $ 39,996,667
---------------------------------------------------------------------------------------------------------------------
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
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
National City Bank of Cleveland
6.57%-6.79%*, 11/22/2000-1/5/2001 $ 45,000,000 $ 45,002,185
---------------------------------------------------------------------------------------------------------------------
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.
8
<PAGE>
Portfolio of Investments at October 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Government Securities Portfolio
Repurchase Agreements -- 42.6%
---------------------------------------------------------------------------------------------------------------------
Bear Stearns, Inc.
6.60%, 11/1/2000, to be repurchased at $150,027,500 $ 150,000,000 $ 150,000,000
---------------------------------------------------------------------------------------------------------------------
Chase Securities, Inc.
6.52%, 11/2/2000, to be repurchased at $100,036,222 100,000,000 100,000,000
---------------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston Corp.
6.53%, 11/7/2000, to be repurchased at $35,044,440 35,000,000 35,000,000
---------------------------------------------------------------------------------------------------------------------
First Boston, Inc.
6.56%, 1/11/2001, to be repurchased at $30,393,600 30,000,000 30,000,000
---------------------------------------------------------------------------------------------------------------------
Goldman Sachs and Co.
6.52%, 11/20/2000, to be repurchased at $40,144,889 40,000,000 40,000,000
---------------------------------------------------------------------------------------------------------------------
Goldman Sachs and Co.
6.54%, 11/3/2000, to be repurchased at $50,027,250 50,000,000 50,000,000
---------------------------------------------------------------------------------------------------------------------
Merrill Lynch, Inc.
6.53%, 11/2/2000, to be repurchased at $90,032,650 90,000,000 90,000,000
---------------------------------------------------------------------------------------------------------------------
Merrill Lynch, Inc.
6.56%, 1/9/2001, to be repurchased at $40,510,222 40,000,000 40,000,000
---------------------------------------------------------------------------------------------------------------------
Morgan Stanley, Inc.
6.50%, 11/1/2000, to be repurchased at $35,006,319 35,000,000 35,000,000
---------------------------------------------------------------------------------------------------------------------
Morgan Stanley, Inc.
6.56%, 1/25/2001, to be repurchased at $50,783,556 50,000,000 50,000,000
---------------------------------------------------------------------------------------------------------------------
State Street Bank and Trust Company
6.55%, 11/1/2000, to be repurchased at $8,812,603 8,811,000 8,811,000
----------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $628,811,000) (b) 628,811,000
---------------------------------------------------------------------------------------------------------------------
Short-Term Notes -- 57.4%
---------------------------------------------------------------------------------------------------------------------
Federal Agricultural Mortgage Corporation, 6.77%*, 11/7/2000 5,000,000 5,000,000
---------------------------------------------------------------------------------------------------------------------
Federal Farm Credit Bank, 6.50%-6.52%*, 11/1/2000 70,000,000 69,988,957
---------------------------------------------------------------------------------------------------------------------
Federal Home Loan Bank, 5.93%-7.13%*, 11/1/2000-8/28/2001 208,750,000 208,386,487
---------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., 6.41%-6.93%*, 12/20/2000-2/8/2001 105,000,000 104,592,700
---------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Association, 6.42%-7.42%*, 11/1/2000-7/13/2001 146,119,480 145,808,981
---------------------------------------------------------------------------------------------------------------------
Hainan Airlines, 6.62%*, 12/21/2000 22,504,839 22,504,839
---------------------------------------------------------------------------------------------------------------------
Overseas Private Investment Corp., 6.50%*, 1/2/2001 5,090,000 5,088,929
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
Overseas Private Investment Corp., 7.02%*, 11/7/2000 $ 7,525,506 $ 7,525,506
---------------------------------------------------------------------------------------------------------------------
Student Loan Marketing Association, 6.82%-7.07%*, 11/7/2000 280,000,000 279,953,445
---------------------------------------------------------------------------------------------------------------------
Total Short-Term Notes (Cost $848,849,844) 848,849,844
---------------------------------------------------------------------------------------------------------------------
Total Investment Portfolio -- 100% (Cost $1,477,660,844) (a) $ 1,477,660,844
---------------------------------------------------------------------------------------------------------------------
</TABLE>
Interest rates represent annualized yield to date of maturity, except for
floating rate securities described below.
(a) Cost for federal income tax purposes was $1,477,660,844.
(b) Repurchase agreements are fully collateralized by U.S. Treasury or
Government agency securities.
* Floating rate notes are securities whose yields vary with a designated
market index or market rate, such as the coupon-equivalent of the U.S.
Treasury bill rate. These securities are shown at their current rate as of
October 31, 2000. The date shown represents the demand date or next interest
rate change date.
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
Portfolio of Investments at October 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Tax-Exempt Portfolio
Variable Rate Demand Securities*-- 59.6%
---------------------------------------------------------------------------------------------------------------------
Alabama
Birmingham,
Special Care Facilities Financing Authority, 4.60% $ 21,500,000 $ 21,500,000
---------------------------------------------------------------------------------------------------------------------
Mobile, Ascension, 4.60% 10,000,000 10,000,000
---------------------------------------------------------------------------------------------------------------------
Alaska
Valdez,
Exxon Pipeline Co. Project, 4.60% 5,340,000 5,340,000
---------------------------------------------------------------------------------------------------------------------
Arizona
Pima County,
Industrial Development Authority Revenue, 4.90% 700,000 700,000
---------------------------------------------------------------------------------------------------------------------
California
Los Angeles,
Harbor Improvement Corp., 4.50% 6,400,000 6,400,000
---------------------------------------------------------------------------------------------------------------------
Colorado
Denver City and County,
Special Facilities Airport Revenue, 4.55% 16,000,000 16,000,000
---------------------------------------------------------------------------------------------------------------------
Health Facilities Authority,
Bethesda Living Center Project, 4.40% 5,965,000 5,965,000
---------------------------------------------------------------------------------------------------------------------
Health Facilities Authority,
Frasier Meadows Manor Project, 4.44% 10,280,000 10,280,000
---------------------------------------------------------------------------------------------------------------------
Mullen,
Educational Facilities Authority, 4.50% 4,125,000 4,125,000
---------------------------------------------------------------------------------------------------------------------
District of Columbia
General Obligations, 4.80% 17,550,000 17,550,000
---------------------------------------------------------------------------------------------------------------------
The Washington Home, Inc., 4.40% 6,900,000 6,900,000
---------------------------------------------------------------------------------------------------------------------
Florida
Hampton County,
Multi-Family Housing, 4.35% 8,000,000 8,000,000
---------------------------------------------------------------------------------------------------------------------
Indian River County,
Hospital Revenue, 4.50% 10,500,000 10,500,000
---------------------------------------------------------------------------------------------------------------------
Orange County,
Health Facilities Authority, 4.40% 3,400,000 3,400,000
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
Putnam County,
Development Authority, 4.45% $ 6,850,000 $ 6,850,000
---------------------------------------------------------------------------------------------------------------------
Sunshine State Governmental Funding Commission, 4.40% 2,000,000 2,000,000
---------------------------------------------------------------------------------------------------------------------
University of Northern Florida, 4.45% 11,600,000 11,600,000
---------------------------------------------------------------------------------------------------------------------
Georgia
DeKalb County,
Development Authority Pollution Control Revenue, 4.35% 5,000,000 5,000,000
---------------------------------------------------------------------------------------------------------------------
Fayette County,
Educational Facilities Authority, 4.35% 5,000,000 5,000,000
---------------------------------------------------------------------------------------------------------------------
Fulton County,
Development Authority Revenue, 4.35% 5,000,000 5,000,000
---------------------------------------------------------------------------------------------------------------------
Gainesville-Riverside,
Redevelopment Authority Revenue, 4.35% 19,000,000 19,000,000
---------------------------------------------------------------------------------------------------------------------
Laurens County,
Development Revenue, 4.45% 4,000,000 4,000,000
---------------------------------------------------------------------------------------------------------------------
Willacoochie,
Development Authority, Pollution Control Revenue, 4.45% 6,000,000 6,000,000
---------------------------------------------------------------------------------------------------------------------
Illinois
Campagna,
Development Finance Authority, 4.65% 6,900,000 6,900,000
---------------------------------------------------------------------------------------------------------------------
Carol Stream,
Industrial Project Revenue, 4.45% 2,000,000 2,000,000
---------------------------------------------------------------------------------------------------------------------
Des Plaines,
Industrial Development Revenue, 4.65% 3,835,000 3,835,000
---------------------------------------------------------------------------------------------------------------------
DuPage County,
Benet Academy Building Revenue, 4.39% 8,000,000 8,000,000
---------------------------------------------------------------------------------------------------------------------
Elgin,
Judson College Project, 4.50% 2,920,000 2,920,000
---------------------------------------------------------------------------------------------------------------------
Franklin Park,
Industrial Development Authority, 4.45% 5,000,000 5,000,000
---------------------------------------------------------------------------------------------------------------------
Rockford,
Industrial Development Revenue, 4.50% 4,000,000 4,000,000
---------------------------------------------------------------------------------------------------------------------
Rockford-Fastener,
Industrial Project Revenue, 4.75% 2,000,000 2,000,000
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
Indiana
Columbia City,
4.45% $ 3,700,000 $ 3,700,000
---------------------------------------------------------------------------------------------------------------------
Fort Wayne,
Pollution Control Revenue, 4.40% 6,000,000 6,000,000
---------------------------------------------------------------------------------------------------------------------
Health Facilities Financing Authority, 4.60% 6,000,000 6,000,000
---------------------------------------------------------------------------------------------------------------------
Hendricks County,
Industrial Redevelopment, 4.45% 3,495,000 3,495,000
---------------------------------------------------------------------------------------------------------------------
Indiana Bond Bank, 4.45% 7,010,000 7,010,000
---------------------------------------------------------------------------------------------------------------------
Kentucky
Boone County,
Pollution Control Revenue, 4.50% 8,000,000 8,000,000
---------------------------------------------------------------------------------------------------------------------
Campbell-Taylor County,
Industrial Development Authority, 4.60% 3,000,000 3,000,000
---------------------------------------------------------------------------------------------------------------------
Lexington-Fayette Urban County,
Industrial Development Revenue, 4.50% 7,600,000 7,600,000
---------------------------------------------------------------------------------------------------------------------
Mason County,
East Kentucky Power Co-op, 4.45% 13,590,000 13,590,000
---------------------------------------------------------------------------------------------------------------------
Mayfield,
Multi-City Lease Revenue, 4.50% 3,060,000 3,060,000
---------------------------------------------------------------------------------------------------------------------
Louisiana
Public Facilities Authority,
Revenue, 4.50% 6,000,000 6,000,000
---------------------------------------------------------------------------------------------------------------------
Michigan
Strategic Fund,
Hope Network Project, 4.45% 4,185,000 4,185,000
---------------------------------------------------------------------------------------------------------------------
Strategic Fund,
Limited Obligation Revenue, 4.65% 6,250,000 6,250,000
---------------------------------------------------------------------------------------------------------------------
Strategic Fund,
Pollution Control Revenue, 4.45% 5,300,000 5,300,000
---------------------------------------------------------------------------------------------------------------------
Missouri
Environment Improvement & Energy, 4.45% 2,460,000 2,460,000
---------------------------------------------------------------------------------------------------------------------
Higher Education Loan Authority, 4.40% 11,200,000 11,200,000
---------------------------------------------------------------------------------------------------------------------
Kansas City,
Industrial Development Authority, 4.50% 5,530,000 5,530,000
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
St. Louis,
Development Financial Authority, 4.54% $ 5,000,000 $ 5,000,000
---------------------------------------------------------------------------------------------------------------------
Nebraska
York,
Industrial Development Revenue, 4.60% 5,600,000 5,600,000
---------------------------------------------------------------------------------------------------------------------
New Hampshire
Business Finance Authority, 4.45% 11,000,000 11,000,000
---------------------------------------------------------------------------------------------------------------------
North Carolina
Medical Care Commission,
Hospital Revenue, 4.40% 6,000,000 6,000,000
---------------------------------------------------------------------------------------------------------------------
Winston-Salem,
Multi-Family Housing, 4.45% 6,870,000 6,870,000
---------------------------------------------------------------------------------------------------------------------
Ohio
Athens County,
Port Authority, 4.45% 6,000,000 6,000,000
---------------------------------------------------------------------------------------------------------------------
Hancock County,
Multi-Family Housing, 4.54% 6,150,000 6,150,000
---------------------------------------------------------------------------------------------------------------------
Medina County,
Health Care Facilities Revenue, 4.44% 4,460,000 4,460,000
---------------------------------------------------------------------------------------------------------------------
Higher Education Facilities Commission, 4.50% 12,000,000 12,000,000
---------------------------------------------------------------------------------------------------------------------
Oregon
Clackamas County,
Hospital Revenue, 4.50% 8,000,000 8,000,000
---------------------------------------------------------------------------------------------------------------------
Economic Development Revenue, 4.45% 3,650,000 3,650,000
---------------------------------------------------------------------------------------------------------------------
Pennsylvania
Dauphin County,
General Authority, 4.41% 19,000,000 19,000,000
---------------------------------------------------------------------------------------------------------------------
Emmaus,
General Authority Revenue, 4.41% 13,300,000 13,300,000
---------------------------------------------------------------------------------------------------------------------
Lancaster County,
Hospital Revenue, 4.43% 4,145,000 4,145,000
---------------------------------------------------------------------------------------------------------------------
Lehigh County,
Industrial Development Authority, 4.45% 4,600,000 4,600,000
---------------------------------------------------------------------------------------------------------------------
Parkland School District,
Public School Building Authority, 4.41% 5,930,000 5,930,000
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
Quakertown,
Hospital Authority, 4.30% $ 11,000,000 $ 11,000,000
---------------------------------------------------------------------------------------------------------------------
South Carolina
Public Service Authority, 4.43% 2,000,000 2,000,000
---------------------------------------------------------------------------------------------------------------------
Tennessee
Marion County,
Industrial and Environmental Development Board, 4.45% 8,500,000 8,500,000
---------------------------------------------------------------------------------------------------------------------
Maury County,
Saturn Corporation Project, 4.40% 4,500,000 4,500,000
---------------------------------------------------------------------------------------------------------------------
Texas
Brazos River Authority,
Pollution Control Revenue, 4.75% 9,000,000 9,000,000
---------------------------------------------------------------------------------------------------------------------
Harris County,
Health Facilities Authority, 4.65% 23,710,000 23,710,000
---------------------------------------------------------------------------------------------------------------------
Mesquite,
Health Facilities Development, 4.40% 8,000,000 8,000,000
---------------------------------------------------------------------------------------------------------------------
San Antonio,
Industrial Development Authority, 4.40% 5,600,000 5,600,000
---------------------------------------------------------------------------------------------------------------------
Texas Small Business Industry Development Corp.,
Industrial Development Revenue, 4.45% 14,845,000 14,845,000
---------------------------------------------------------------------------------------------------------------------
Trinity River Authority,
Pollution Control Revenue, 4.50% 3,900,000 3,900,000
---------------------------------------------------------------------------------------------------------------------
Vermont
Industrial Development Authority, 4.80% 2,595,000 2,595,000
---------------------------------------------------------------------------------------------------------------------
Student Association Corp,
Student Loan Revenue, 4.50% 13,190,000 13,190,000
---------------------------------------------------------------------------------------------------------------------
Virginia
---------------------------------------------------------------------------------------------------------------------
Loudoun County,
Industrial Development Authority, 4.50% 2,640,000 2,640,000
---------------------------------------------------------------------------------------------------------------------
Wisconsin
Eau Claire,
Solid Waste Disposal Revenue, 4.50% 5,800,000 5,800,000
---------------------------------------------------------------------------------------------------------------------
Merrill,
Industrial Development Revenue, 4.60% 5,700,000 5,700,000
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
Park Falls,
Industrial Development Revenue, 4.65% $ 3,500,000 $ 3,500,000
---------------------------------------------------------------------------------------------------------------------
Pewaukee,
Industrial Development Revenue, 4.65% 2,780,000 2,780,000
---------------------------------------------------------------------------------------------------------------------
Total Variable Rate Demand Securities (Cost: $577,110,000) 577,110,000
---------------------------------------------------------------------------------------------------------------------
Other Securities -- 40.4%
---------------------------------------------------------------------------------------------------------------------
Alaska
City of Valdez,
ARCO, 4.25%-4.30%, 11/7/2000-2/23/2001 18,300,000 18,300,000
---------------------------------------------------------------------------------------------------------------------
Arizona
Salt River Project,
Agricultural Improvement and Power District,
4.30%-4.35%, 11/9/2000-1/25/2001 21,600,000 21,600,000
---------------------------------------------------------------------------------------------------------------------
Colorado
Platte River,
Power Authority, 4.30%, 2/14/2001 6,000,000 6,000,000
---------------------------------------------------------------------------------------------------------------------
Florida
Jacksonville,
Electric Authority, 4.30%, 2/12/2001 7,254,000 7,254,000
---------------------------------------------------------------------------------------------------------------------
Sarasota County,
Hospital Revenue, 4.25%-4.30%, 11/10/2000-2/13/2001 19,300,000 19,300,000
---------------------------------------------------------------------------------------------------------------------
Indiana
Jasper County,
Industrial Pollution Control Revenue, 4.50%-4.60%, 11/14/2000-1/15/2000 14,000,000 14,000,000
---------------------------------------------------------------------------------------------------------------------
Sullivan Hoosier, 4.25%, 11/9/2000 5,200,000 5,200,000
---------------------------------------------------------------------------------------------------------------------
Kentucky
Commission Road Fund,
4.30%, 11/1/2000 1,400,000 1,400,000
---------------------------------------------------------------------------------------------------------------------
Danville,
Multi-County Lease Revenue, 4.35%, 2/9/2001 6,915,000 6,915,000
---------------------------------------------------------------------------------------------------------------------
Pendleton County,
Multi-County Lease Revenue, 4.30%, 11/8/2000-2/12/2001 13,545,000 13,545,000
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
Louisiana
Industrial District of West Baton Rouge,
Pollution Control Revenue, 4.30%, 11/14/2000-12/13/2000 $ 12,150,000 $ 12,150,000
---------------------------------------------------------------------------------------------------------------------
Maryland
Anne Arundel County,
Port Facilities Revenue, 4.25%-4.35%, 11/8/2000-2/9/2001 11,000,000 11,000,000
---------------------------------------------------------------------------------------------------------------------
Michigan
Strategic Fund,
Continental Aluminum Project, 4.30%, 11/7/2000-11/13/2000 13,120,000 13,120,000
---------------------------------------------------------------------------------------------------------------------
Mississippi
Claiborne County,
Pollution Control Revenue, 4.30%, 11/8/2000 1,545,000 1,545,000
---------------------------------------------------------------------------------------------------------------------
Nevada
Las Vegas Valley,
Water & Power Authority, 4.30%, 11/13/2000 4,000,000 4,000,000
---------------------------------------------------------------------------------------------------------------------
New Hampshire
Business Financial Authority,
Pollution Control Revenue, 4.35%-4.45%, 11/13/2000-2/15/2001 21,850,000 21,850,000
---------------------------------------------------------------------------------------------------------------------
New Jersey
Transportation, 4.30%, 2/22/2001 12,500,000 12,500,000
---------------------------------------------------------------------------------------------------------------------
Ohio
Air Quality Development Authority, 4.30%, 2/13/2001 3,000,000 3,000,000
---------------------------------------------------------------------------------------------------------------------
Water Development, 4.30%, 11/9/2000-2/12/2001 8,000,000 8,000,000
---------------------------------------------------------------------------------------------------------------------
South Carolina
Public Service Authority, 4.30%, 12/6/2000-2/12/2001 14,000,000 14,000,000
---------------------------------------------------------------------------------------------------------------------
Texas
Austin,
Utility System, 4.30%-4.35%, 12/8/2000-2/21/2001 23,353,000 23,353,000
---------------------------------------------------------------------------------------------------------------------
Harris County,
4.30%, 11/7/2000-12/7/2000 13,792,000 13,792,000
---------------------------------------------------------------------------------------------------------------------
Houston,
General Obligation, 4.45%, 1/11/2001 6,400,000 6,400,000
---------------------------------------------------------------------------------------------------------------------
Lower Colorado
River Authority, 4.30%-4.35%, 11/9/2000-12/6/2000 16,100,000 16,100,000
---------------------------------------------------------------------------------------------------------------------
Municipal Power Agency, 4.35%, 1/17/2001 10,000,000 10,000,000
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
San Antonio,
Electric & Gas, 4.30%, 12/11/2000 $ 10,000,000 $ 10,000,000
---------------------------------------------------------------------------------------------------------------------
Tax and Revenue Anticipation Notes, 5.25%, 8/31/2001 20,000,000 20,146,854
---------------------------------------------------------------------------------------------------------------------
University of Texas, 4.30%, 2/13/2001 6,990,000 6,990,000
---------------------------------------------------------------------------------------------------------------------
Utah
Intermountain Power Agency, 4.30%-4.40%, 1/16/2001-3/12/2001 21,400,000 21,400,000
---------------------------------------------------------------------------------------------------------------------
Virginia
Chesapeake County,
Industrial Development Authority, 4.30%, 11/8/2000 2,000,000 2,000,000
---------------------------------------------------------------------------------------------------------------------
Chesterfield County,
Industrial Development Authority, 4.35%, 11/9/2000 7,000,000 7,000,000
---------------------------------------------------------------------------------------------------------------------
Louisa County,
Industrial Development Authority, 4.30%-4.40%, 12/27/2000-1/17/2001 12,700,000 12,700,000
---------------------------------------------------------------------------------------------------------------------
York County,
Industrial Development Authority, 4.30%, 11/9/2000 2,500,000 2,500,000
---------------------------------------------------------------------------------------------------------------------
Washington
Port of Anacortes,
4.30%, 11/8/2000 15,500,000 15,500,000
---------------------------------------------------------------------------------------------------------------------
Wyoming
Sweetwater,
Pollution Control Revenue, 4.30%, 11/9/2000-2/9/2001 8,500,000 8,500,000
---------------------------------------------------------------------------------------------------------------------
Total Other Securities (Cost $391,060,854) 391,060,854
---------------------------------------------------------------------------------------------------------------------
Total Investment Portfolio -- 100% (Cost $968,170,854) (a) $ 968,170,854
---------------------------------------------------------------------------------------------------------------------
</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 $968,170,854.
* Variable rate demand 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.
18
<PAGE>
Financial Statements
Statements of Assets and Liabilities
<TABLE>
Money Market
as of October 31, 2000 (Unaudited) Portfolio
---------------------------------------------------------------------------------------------------------------------
<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.
19
<PAGE>
Statements of Assets and Liabilities
<TABLE>
Government
Securities Tax-Exempt
as of October 31, 2000 (Unaudited) Portfolio Portfolio
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
---------------------------------------------------------------------------------------------------------------------
Investments in securities, at value (for cost, see accompanying portfolios of
investments):
---------------------------------------------------------------------------------------------------------------------
Short-term notes $ 848,849,844 $ 968,170,854
---------------------------------------------------------------------------------------------------------------------
Repurchase agreements 628,811,000 --
---------------------------------------------------------------------------------------------------------------------
Cash 92,046 1,631,319
---------------------------------------------------------------------------------------------------------------------
Receivable for investments sold -- 460,250
---------------------------------------------------------------------------------------------------------------------
Interest receivable 9,462,142 4,268,104
---------------------------------------------------------------------------------------------------------------------
Due from Adviser -- 283,664
---------------------------------------------------------------------------------------------------------------------
Total assets 1,487,215,032 974,814,191
---------------------------------------------------------------------------------------------------------------------
Liabilities
---------------------------------------------------------------------------------------------------------------------
Due to custodian bank -- --
---------------------------------------------------------------------------------------------------------------------
Dividends payable 7,412,095 3,110,165
---------------------------------------------------------------------------------------------------------------------
Accrued management fee 244,395 --
---------------------------------------------------------------------------------------------------------------------
Other accrued expenses and payables 1,262,975 --
---------------------------------------------------------------------------------------------------------------------
Total liabilities 8,919,465 3,110,165
---------------------------------------------------------------------------------------------------------------------
Net assets, at value $1,478,295,567 $ 971,704,026
---------------------------------------------------------------------------------------------------------------------
Institutional Shares
---------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ -- $ 225,645,174
---------------------------------------------------------------------------------------------------------------------
Shares outstanding of capital stock, $.01 par value, unlimited number of shares
authorized -- 225,645,174
---------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share (net assets/shares $ -- $ 1.00
outstanding)
---------------------------------------------------------------------------------------------------------------------
Managed Shares
---------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ -- $ 151,056,706
---------------------------------------------------------------------------------------------------------------------
Shares outstanding of capital stock, $.01 par value, unlimited number of shares
authorized -- 151,056,706
---------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share (net assets/shares $ -- $ 1.00
outstanding)
---------------------------------------------------------------------------------------------------------------------
Premier Money Market Shares
---------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 980,638,914 $ 79,798,743
---------------------------------------------------------------------------------------------------------------------
Shares outstanding of capital stock, $.01 par value, unlimited number of shares
authorized 980,638,914 79,798,743
---------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share (net assets/shares
outstanding) $ 1.00 $ 1.00
---------------------------------------------------------------------------------------------------------------------
Service Shares
---------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 497,656,653 $ 515,203,403
---------------------------------------------------------------------------------------------------------------------
Shares outstanding of capital stock, $.01 par value, unlimited number of shares
authorized 497,656,653 515,203,403
---------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share (net assets/shares
outstanding) $ 1.00 $ 1.00
---------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
Statement of Operations
<TABLE>
Government
Money Market Securities Tax-Exempt
Six months ended October 31, 2000 (Unaudited) Portfolio Portfolio Portfolio
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income
---------------------------------------------------------------------------------------------------------------------
Interest $ 282,730,201 $ 39,449,461 $ 19,687,446
----------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Expenses:
---------------------------------------------------------------------------------------------------------------------
Management fee 6,708,011 967,180 725,443
---------------------------------------------------------------------------------------------------------------------
Services to shareholders 12,165,935 1,552,730 689,406
---------------------------------------------------------------------------------------------------------------------
Custodian fees 481,573 28,529 45,851
---------------------------------------------------------------------------------------------------------------------
Distribution services fees 22,077,035 2,390,723 1,328,812
---------------------------------------------------------------------------------------------------------------------
Administrative services fees 1,672,546 848,038 247,681
---------------------------------------------------------------------------------------------------------------------
Auditing 31,088 14,980 4,075
---------------------------------------------------------------------------------------------------------------------
Legal 33,346 3,160 2,645
---------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 89,837 2,240 3,025
---------------------------------------------------------------------------------------------------------------------
Reports to shareholders 590,007 101,507 13,932
---------------------------------------------------------------------------------------------------------------------
Registration fees 1,202,358 121,329 37,759
---------------------------------------------------------------------------------------------------------------------
Other 281,372 12,669 10,540
----------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Total expenses, before expense reductions 45,333,108 6,043,085 3,109,169
---------------------------------------------------------------------------------------------------------------------
Expense reductions (4,246,419) (6,448) (6,418)
----------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Total expenses, after expense reductions 41,086,689 6,036,637 3,102,751
---------------------------------------------------------------------------------------------------------------------
Net investment income 241,643,512 33,412,824 16,584,695
---------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 241,643,512 $ 33,412,824 $ 16,584,695
---------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Money Market Portfolio
-------------------------------
Six Months Year Ended
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.
22
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Government Securities Portfolio Tax-Exempt Portfolio
---------------------------------------------------------------
Six Months Year Ended Six Months Year Ended
Ended Ended
October 31, April 30, October 31, April 30,
2000 (Unaudited) 2000 2000 (Unaudited) 2000
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
---------------------------------------------------------------------------------------------------------------------
Operations:
---------------------------------------------------------------------------------------------------------------------
Net investment income (loss) $ 33,412,824 $ 26,360,922 $ 16,584,695 $ 14,039,776
---------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 33,412,824 26,360,922 16,584,695 14,039,776
---------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment
income (33,412,824) (26,360,922) (16,584,695) (14,039,776)
---------------------------------------------------------------------------------------------------------------------
Fund share transactions at net asset value of $1.00
per share:
Institutional Shares (a):
---------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold -- -- 184,945,243 247,638,674
---------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions -- -- 296,537 64,716
---------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed -- -- (128,823,592) (78,476,405)
---------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
-- -- 56,418,188 169,226,985
---------------------------------------------------------------------------------------------------------------------
Managed Shares (a):
---------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold -- -- 102,590,769 215,706,614
---------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions -- -- 19,037 5,108
---------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed -- -- (82,878,163) (84,386,659)
---------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
-- -- 19,731,643 131,325,063
---------------------------------------------------------------------------------------------------------------------
Premier Money Market Shares (b):
---------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold 1,144,759,079 5,000,564 137,761,569 655,552
---------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 14,448,156 9,006 743,013 1,266
---------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed (182,276,918) (1,300,974) (59,107,600) (255,057)
---------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
976,930,317 3,708,596 79,396,982 401,761
---------------------------------------------------------------------------------------------------------------------
Service Shares:
---------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold 1,399,773,336 2,982,333,915 1,413,537,728 3,032,944,597
---------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 13,969,577 26,623,715 7,193,119 11,295,030
---------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed (1,414,012,966) (3,304,201,108) (1,370,062,523) (2,960,333,539)
---------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
(270,053) (295,243,478) 50,668,324 83,906,088
---------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share
transactions 976,660,264 (291,534,882) 206,215,137 384,859,897
---------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 976,660,264 (291,534,882) 206,215,137 384,859,897
---------------------------------------------------------------------------------------------------------------------
Net assets at beginning of period 501,635,303 793,170,185 765,488,889 380,628,992
---------------------------------------------------------------------------------------------------------------------
Net assets at end of period $1,478,295,567 $ 501,635,303 $ 971,704,026 $ 765,488,889
---------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Institutional Shares and Managed Shares were initially offered on November
17, 1999.
(b) Premier Money Market Shares commenced operations on March 1, 2000 and March
7, 2000 for the Government Securities Portfolio and Tax-Exempt Portfolio,
respectively.
The accompanying notes are an integral part of the financial statements.
23
<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.
Money Market Portfolio -- Service Shares
<TABLE>
<CAPTION>
Years ended April 30, 2000(a) 2000 1999 1998 1997 1996
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 1.00 1.00 1.00 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Net investment income .03 .05 .04 .05 .05 .05
---------------------------------------------------------------------------------------------------------------------
Less distributions from net investment
income (.03) (.05) (.04) (.05) (.05) (.05)
---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00 1.00 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Total Return (%) (b) 2.89** 4.74 4.46 4.85 4.60 4.96
---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 7,019,325 6,314,907 3,343,011 1,995,057 584,947 455,025
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) 1.11* 1.08 1.10 1.10 1.03 1.05
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) 1.00* 1.00 1.00 1.00 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (%) 5.67* 4.72 4.34 4.71 4.51 4.83
---------------------------------------------------------------------------------------------------------------------
</TABLE>
Government Securities Portfolio -- Service Shares
<TABLE>
<CAPTION>
Years ended April 30, 2000(a) 2000 1999 1998 1997 1996
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 1.00 1.00 1.00 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Net investment income .03 .04 .04 .05 .05 .05
---------------------------------------------------------------------------------------------------------------------
Less distributions from net investment
income (.03) (.04) (.04) (.05) (.05) (.05)
---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00 1.00 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Total Return (%) (b) 2.84** 4.54 4.34 4.78 4.69 5.01
---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 497,657 497,927 793,170 804,565 544,501 189,919
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) 1.06* 1.08 1.01 1.02 .99 1.06
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) 1.06* 1.00 1.00 .98 .92 .90
---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (%) 5.49* 4.37 4.24 4.68 4.59 4.88
---------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the six months ended October 31, 2000 (Unaudited).
(b) Total return would have been lower had certain expenses not been reduced.
* Annualized
** Not annualized
24
<PAGE>
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.
Tax-Exempt Portfolio -- Service Shares
<TABLE>
<CAPTION>
Years ended April 30, 2000(a) 2000 1999 1998 1997 1996
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 1.00 1.00 1.00 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Net investment income .02 .03 .02 .03 .03 .03
---------------------------------------------------------------------------------------------------------------------
Less distributions from net investment
income (.02) (.03) (.02) (.03) (.03) (.03)
---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00 1.00 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Total Return (%) (b) 1.77** 2.68 2.50 2.92 2.82 3.16
---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 515,203 464,535 380,629 368,141 220,791 66,981
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) .92* .95 .91 .97 .96 .98
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) .92* .95 .91 .91 .81 .78
---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (%) 3.47* 2.66 2.45 2.87 2.78 3.10
---------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the six months ended October 31, 2000 (Unaudited).
(b) Total return would have been lower had certain expenses not been reduced.
* Annualized
** Not annualized
25
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Notes to Financial Statements (Unaudited)
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 Service shares of each 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.
Each 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 Portfolios in the preparation of their financial statements.
Security Valuation. Each 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. Each 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. Each 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, each 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
26
<PAGE>
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 Portfolios incurred management fees as follows:
Management Effective
fees rate
--------------------------------------------------------------------------------
Money Market Portfolio $ 6,708,011 .16%
--------------------------------------------------------------------------------
Government Securities Portfolio 967,180 .16%
--------------------------------------------------------------------------------
Tax-Exempt Portfolio 725,443 .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%, 0.60% and 0.50% of average daily net assets for
the Service shares of the Money Market Portfolio, Government Securities
Portfolio and Tax-Exempt Portfolio, respectively, 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 six months ended October 31, 2000, the Portfolios
incurred distribution services fees as follows:
Distribution
services fees
-------------------------------------------------------------------------------
Money Market Portfolio $ 17,946,286
(after $4,130,749 of expense waiver)
-------------------------------------------------------------------------------
Government Securities Portfolio 2,390,723
-------------------------------------------------------------------------------
Tax-Exempt Portfolio 1,328,812
-------------------------------------------------------------------------------
The Fund has an administrative and shareholder services agreement with KDI for
providing information and administrative services to shareholders. The Premium
Reserve Money Market, Managed and Premier Money Market shares of each 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 Portfolios incurred administrative services fees as
follows:
Administrative
services fees
--------------------------------------------------------------------------------
Money Market Portfolio (after $70,311 of expense waiver) $ 1,602,235
--------------------------------------------------------------------------------
Government Securities Portfolio 848,038
--------------------------------------------------------------------------------
Tax-Exempt Portfolio 247,681
--------------------------------------------------------------------------------
Shareholder Services Agreement. Pursuant to a services agreement with the Fund's
transfer agent,
27
<PAGE>
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
--------------------------------------------------------------------------------
Government Securities Portfolio 1,325,175
--------------------------------------------------------------------------------
Tax-Exempt Portfolio 608,659
--------------------------------------------------------------------------------
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 Portfolios made no payments to their officers and incurred Trustees'
fees to independent Trustees as follows:
Trustees' fees
--------------------------------------------------------------------------------
Money Market Portfolio $ 89,837
--------------------------------------------------------------------------------
Government Securities Portfolio 2,240
--------------------------------------------------------------------------------
Tax-Exempt Portfolio 3,025
--------------------------------------------------------------------------------
Expense Absorption. Scudder Kemper has agreed temporarily to limit the
Portfolios' 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%), Government
Securities Portfolio (1.00%) and Tax-Exempt Portfolio Premier Money Market
shares (1.00%) and Service shares (0.95%). 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 each Portfolio's expenses. During the period, the Money
Market Portfolio, Government Securities Portfolio and Tax-Exempt Portfolio
custody and transfer agent fees were reduced as follows:
Custodian Transfer Agent
--------------------------------------------------------------------------------
Money Market Portfolio $ 8,616 $ 36,744
--------------------------------------------------------------------------------
Government Securities Portfolio 1,116 5,332
--------------------------------------------------------------------------------
Tax-Exempt Portfolio 2,491 3,927
--------------------------------------------------------------------------------
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. Each
Portfolio may borrow up to a maximum of 33 percent of its net assets under the
agreement.
28
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