Shares of Scudder Cash Investment Trust are not insured or guaranteed by the
U.S. Government. The Fund seeks to maintain a constant net asset value of $1.00
per share but there can be no assurance that the stable net asset value will be
maintained.
This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
Scudder
Cash
Investment
Trust
Annual Report
June 30, 1995
o A money market fund for investors seeking stability and liquidity of capital
and current income.
o A pure no-load(TM) fund with no commissions to buy, sell, or exchange shares.
<PAGE>
SCUDDER CASH INVESTMENT TRUST
--------------------------------------------------------------------------------
TABLE OF CONTENTS
3 Letter from the Fund's President
4 Portfolio Management Discussion
Your Fund's portfolio management team reviews the period's investing
strategies, financial markets, and economic conditions
7 Investment Portfolio
Itemized list of your Fund's portfolio holdings
10 Financial Statements
13 Financial Highlights
14 Notes to Financial Statements
17 Report of Independent Accountants
21 Officers and Trustees
22 Investment Products and Services
23 How to Contact Scudder
2
<PAGE>
LETTER FROM THE FUND'S PRESIDENT
--------------------------------------------------------------------------------
Dear Shareholders,
After a difficult 1994, stock and bond prices improved dramatically in
1995 as concerns about inflationary economic growth all but disappeared. In
spite of this strong overall market performance, money funds consistently
attracted assets during the past six months as investors, uncertain about the
economic outlook, sought a safe place for their short-term investments. The
total assets of all money funds rose to approximately $697 billion from
approximately $585 billion on June 30, 1994 -- an increase of more than 19%
according to Money Fund Report, a service of IBC Financial Publishing.
During the second half of 1994 and into early 1995, money market
investors benefited from higher interest rates. Although longer-term interest
rates declined through the first half of 1995, short-term rates remained
essentially flat, affording money market investors relatively attractive levels
of income. Not until July did the Federal Reserve, responding to evidence of
slowing economic growth, lower short-term interest rates. If inflation and
economic growth remain subdued, the possibility exists for further short-term
rate cuts in the months ahead. Declining rates, while a welcome change for many
businesses and consumers, are likely to translate into lower yields for money
fund investors. On the other hand, money funds continue to offer rates that are
generally more attractive than those available from bank savings accounts and
certificates of deposit, although mutual funds are not insured or guaranteed by
the U.S. government.
In times like these it is important to remember that while their yields
will fluctuate, money funds are designed to provide a relatively safe place for
your short-term investment needs. Scudder Cash Investment Trust seeks to
maintain a constant $1.00 share price, although there can be no assurance that
this will be the case. Please call a Scudder Investor Relations representative
at 1-800-225-2470 if you have any questions about your Fund. Thank you for
choosing Scudder Cash Investment Trust to help meet your investment needs.
Sincerely,
/s/David S. Lee
David S. Lee
President,
Scudder Cash Investment Trust
3
<PAGE>
SCUDDER CASH INVESTMENT TRUST
PORTFOLIO MANAGEMENT DISCUSSION
--------------------------------------------------------------------------------
Dear Shareholders,
We are pleased to report that Scudder Cash Investment Trust provided
investors with a stable $1.00 share price and a competitive 4.90% return during
its fiscal year ended June 30, 1995. In addition, the Fund posted an attractive
5.12% 7-day net annualized yield at the end of the period. Higher interest rates
in the first nine months of the fiscal year boosted your Fund's yield during
that time and enhanced total returns for the entire fiscal year. While money
market funds generally offer higher yields than insured bank savings accounts,
it is important to keep in mind that the Fund's yield will continue to fluctuate
with prevailing interest rates.
The Changing Investment Environment
During the second half of 1994 and into early 1995, money market investors
benefited from higher interest rates, while bonds and stocks generally reacted
negatively to the rising interest-rate environment. But long-term interest rates
have declined so far in 1995, as indications of a slowing economy reassured
investors that inflation was under control. Shortly after the close of the
Fund's fiscal year, the Federal Reserve reduced short-term interest rates by 1/4
of a percentage point, providing further evidence that inflation is not
currently viewed as a threat.
(LINE CHART TITLE)
Short-Term Interest Rates
Compared With Your Fund's Yield*
(LINE CHART DATA)
YIELD
-----------------------------------------------------------------
3-Month Treasury Bill Scudder Cash Investment Trust
-----------------------------------------------------------------
3/31/93 2.89% 2.55%
-----------------------------------------------------------------
6/30/93 3.03 2.47
-----------------------------------------------------------------
9/30/93 2.92 2.48
-----------------------------------------------------------------
12/31/93 3.01 2.60
-----------------------------------------------------------------
3/31/94 3.48 3.00
-----------------------------------------------------------------
6/30/94 4.15 3.57
-----------------------------------------------------------------
9/30/94 4.67 4.22
-----------------------------------------------------------------
12/31/94 5.53 5.18
-----------------------------------------------------------------
3/31/95 5.70 5.27
-----------------------------------------------------------------
6/30/95 5.44 5.12
-----------------------------------------------------------------
* 7-Day net annualized yield
(CALLOUT NEXT TO CHART)
The fluctuation in Scudder Cash Investment Trust's 7-day net annualized yield
closely tracks that of short term interest rates, as can be seen in this
comparison of the Fund's yield to 3-month Treasury bill yields during the past
three years.
4
<PAGE>
Longer Maturities Provide Insurance
Against Rate Declines
Given this year's declining interest-rate environment, Scudder Cash
Investment Trust has been extending its maturities to capture higher yields. The
average maturity of the Fund's securities cannot exceed 90 days. However, in
order to maintain the Fund's high (AAAm) quality rating by Standard & Poor's, an
independent rating service, we generally restrict the Fund's average maturity to
60 days or less. Your Fund's average maturity was 50 days at the close of the
fiscal period, in contrast with 30 days six months earlier. Additional interest
rate declines will be the impetus for further lengthening the Fund's average
maturity so that the Fund may continue to provide competitive yields.
Investment Breakdown
The Fund's emphasis on quality money market investments, which is in
keeping with its objective of principal stability, enabled Scudder Cash
Investment Trust to maintain its highest-quality rating from Standard & Poor's.
Corporate commercial paper remained a significant portion of the portfolio
throughout the fiscal year. These securities, which provide companies with
short-term funds at a lower rate than loans offered by banks, continue to offer
attractive yields. At the end of the period, commercial paper made up
approximately 46% of the Fund's portfolio.
During the fiscal year, we reduced the Fund's exposure to floating rate
notes (FRNs), whose interest rates are generally reset on a weekly basis. Since
interest rates of FRNs "float" above a particular index, these securities
typically offer higher yields than three-month Treasury bills and some
commercial paper. While Scudder Cash Investment Trust invests only in a very
low-risk form of floating rate note, their adjustable characteristics have made
these securities less desirable during recent months, when rates were generally
declining. We intend to continue to decrease the Fund's exposure to FRNs in the
current environment of declining interest rates, but may look to them for future
yield advantages should the interest rate trend reverse course.
5
<PAGE>
Looking Ahead
If the economy continues to slow and inflation remains under control, we
intend to favor money market securities at the long end of the spectrum to help
"lock in" attractive yields. Our focus will remain on quality as we select
investments to maintain Scudder Cash Investment Trust's stable share price and
competitive yield. Scudder Cash Investment Trust continues to offer a relatively
safe place for your short-term investment needs and can play an important
stabilizing role in a well-balanced portfolio of stocks, bonds, and short-term
investments.
Please call Scudder Investor Relations at 1-800-225-2470 if you have any
questions about your Fund.
Sincerely,
Your Portfolio Management Team
/s/Robert T. Neff /s/Stephen L. Akers
Robert T. Neff Stephen L. Akers
/s/Nicca B. Alcantara
Nicca B. Alcantara
(SIDEBAR)
Scudder Cash Investment Trust:
A Team Approach to Investing
Scudder Cash Investment Trust is managed by a team of investment
professionals who each play an important role in the Fund's management process.
Team members work together to develop investment strategies and select
securities for the Fund's portfolio. They are supported by Scudder's large staff
of economists, research analysts, traders, and other investment specialists who
work in Scudder's offices across the United States and abroad. We believe our
team approach benefits Fund investors by bringing together many disciplines and
leveraging Scudder's extensive resources.
Lead Portfolio Manager Robert T. Neff has had responsibility for the Fund's
day-to-day management since its inception. Bob, who joined Scudder in 1972, has
more than 20 years of experience managing short-term fixed-income assets and is
also Lead Portfolio Manager for Scudder U.S. Treasury Money Fund. Portfolio
Manager Stephen L. Akers joined the Fund's team in 1994 and has managed several
fixed-income portfolios since joining Scudder in 1984. Steve also serves as a
Portfolio Manager for Scudder U.S. Treasury Money Fund. Portfolio Manager Nicca
B. Alcantara has responsibility for the Fund's day-to-day investments. Nicca,
who came to Scudder in 1984, has worked as a portfolio manager since 1989.
6
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO as of June 30, 1995
-----------------------------------------------------------------------------------------------------------
<CAPTION>
% of Principal Value ($)
Portfolio Amount ($) (Note A)
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
6.4% REPURCHASE AGREEMENTS
----------------------------------------------------------------------------
43,966,000 Repurchase Agreement with Harris-Nesbitt
Thomson Securities Inc., dated 6/30/95 at
6.125%, to be repurchased at $43,988,441
on 7/3/95, collateralized by a $44,295,000
U.S. Treasury Note, 6%, 6/30/96................. 43,966,000
16,160,000 Repurchase Agreement with Harris-Nesbitt
Thomson Securities Inc., dated 6/30/95 at
6.125%, to be repurchased at $16,168,248
on 7/3/95, collateralized by a $15,800,000
U.S. Treasury Note, 6.875%, 3/31/97............. 16,160,000
36,970,000 Repurchase Agreement with State Street Bank
and Trust Company, dated 6/30/95 at 6%,
to be repurchased at $36,988,485 on 7/3/95,
collateralized by a $36,820,000 U.S. Treasury
Note, 6.875%, 10/31/96.......................... 36,970,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $97,096,000).............................. 97,096,000
-----------
45.9% COMMERCIAL PAPER
----------------------------------------------------------------------------
COMMUNICATIONS 4.5%
Telephone/Communications 13,000,000 BellSouth Capital Funding Corp.,
5.8%, 10/23/95.................................. 12,761,215
25,000,000 BellSouth Telecommunications Inc.,
5.9%, 8/25/95................................... 24,774,833
30,000,000 US WEST Communications Inc., 5.88%, 8/7/95........ 29,818,546
-----------
67,354,594
-----------
CONSUMER STAPLES 2.5%
Food & Beverage 1.3% 20,000,000 Unilever Capital Corp., 6.18%, 7/24/95............ 19,921,064
-----------
Package Goods/Cosmetics 1.2% 18,200,000 Procter & Gamble Co., 5.9%, 7/24/95............... 18,131,396
-----------
FINANCIAL 36.3%
Banks 7.3% 30,000,000 Abbey National North America, 6.09%, 7/31/95...... 29,847,841
40,000,000 Barclays U.S. Funding Corp., 5.94%, 7/13/95....... 39,920,800
40,000,000 Deutsche Bank Financial Inc., 5.88%, 7/6/95....... 39,967,333
-----------
109,735,974
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
<TABLE>
SCUDDER CASH INVESTMENT TRUST
-------------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Principal Value ($)
Portfolio Amount ($) (Note A)
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Business Finance 13.9% 15,000,000 A.I. Credit Corp., 5.9%, 7/26/95................. 14,938,542
25,300,000 Ciesco L.P., 6.47%, 7/11/95...................... 25,254,542
25,000,000 Ciesco L.P., 5.8%, 8/8/95........................ 24,846,944
20,000,000 Corporate Asset Funding Co., 5.57%, 12/22/95..... 19,461,567
35,000,000 New Center Asset Trust, 5.81%, 10/12/95.......... 34,418,611
26,000,000 Norwest Corp., 5.9%, 8/23/95..................... 25,774,189
35,000,000 Norwest Corp., 5.99%, 9/7/95..................... 34,604,208
13,600,000 Rincon Securities Inc., 5.98%, 8/2/95............ 13,527,693
16,850,000 Rincon Securities Inc., 5.97%, 8/10/95........... 16,738,228
-----------
209,564,524
-----------
Consumer Finance 11.8% 30,000,000 American Express Credit Corp., 5.91%, 8/29/95.... 29,709,500
30,000,000 AT&T Capital Corp., 5.8%, 10/16/95............... 29,482,500
20,000,000 AT&T Capital Corp., 5.66%, 11/29/95.............. 19,525,189
18,000,000 Ford Credit Receivables Funding Inc.,
6.41%, 7/12/95............................... 17,964,719
17,500,000 Ford Credit Receivables Funding Inc.,
5.98%, 9/14/95............................... 17,282,028
15,000,000 General Electric Capital Corp., 5.97%, 8/4/95.... 14,915,416
25,000,000 General Electric Capital Corp., 5.95%, 7/28/95... 25,000,000
25,000,000 Pitney Bowes Credit Corp., 5.81%, 9/29/95........ 24,636,632
-----------
178,515,984
-----------
Insurance 1.3% 20,000,000 Prudential Funding Corp., 5.91%, 7/7/95.......... 19,980,300
-----------
Other Financial Companies 2.0% 30,000,000 Associates Corp. of North America,
5.93%, 7/27/95............................... 29,871,517
-----------
HEALTH 1.6%
Pharmaceuticals 25,000,000 Warner-Lambert Co., 5.68%, 12/13/95.............. 24,349,167
-----------
Utilities 1.0%
Electric Utilities 15,000,000 Emerson Electric Co., 6%, 8/10/95................ 14,900,063
-----------
TOTAL COMMERCIAL PAPER (Cost $692,249,438)....... 692,324,583
-----------
28.3% U.S. GOVERNMENT AGENCY OBLIGATIONS
----------------------------------------------------------------------------
25,000,000 Federal Home Loan Bank, 5.88%, 6/14/96........... 25,007,750
25,000,000 Federal Home Loan Bank, 6.105%, 5/17/96.......... 25,043,000
30,000,000 Federal Home Loan Mortgage Corp., 5.73%,
8/2/95....................................... 29,847,200
60,500,000 Federal National Mortgage Association,
5.58%, 7/14/99*.............................. 59,429,150
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
---------------------------------------------------------------------------------------------
<CAPTION>
% of Principal Value ($)
Portfolio Amount ($) (Note A)
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
25,000,000 Student Loan Marketing Association, 5.935%,
2/14/97* ...................................... 25,022,250
100,000,000 Student Loan Marketing Association, 5.73%,
4/16/96* ...................................... 100,207,000
50,000,000 Student Loan Marketing Association, 5.86%,
10/30/97*...................................... 50,026,000
63,750,000 Student Loan Marketing Association, 5.58%,
7/12/99* ...................................... 62,953,125
50,000,000 Student Loan Marketing Association, 5.885%,
11/27/96*...................................... 50,061,500
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $429,193,263)............................ 427,596,975
-------------
19.4% MEDIUM-TERM AND SHORT-TERM NOTES
-----------------------------------------------------------------------------
24,000,000 Advanta Credit Card, 6.12%, 11/30/98*............. 24,000,000
15,000,000 Colorado Student Obligation, Bond Authority,
5.65%, 7/1/07* ................................ 15,001,350
18,000,000 Fifth Third Bank, Note, 6%, 11/17/95.............. 18,001,949
35,000,000 Fifth Third Bank, Note, 6.2%, 10/27/95............ 35,000,000
50,000,000 First Chicago Corp., 6.08%, 7/27/95............... 50,000,000
27,000,000 Harris Trust and Savings Bank, 6.1%, 7/18/95...... 27,000,000
25,000,000 Harris Trust and Savings Bank, 5.98%, 7/25/95..... 25,000,393
10,000,000 Harris Trust and Savings Bank, 5.98%, 8/25/95..... 10,000,365
25,000,000 National Bank of Detroit, Note, 6.4%, 8/17/95..... 25,010,625
20,000,000 Nationsbank of Texas, Note, 6.25%, 8/24/95........ 20,000,000
8,000,000 Wachovia Corp., 6.3%, 7/15/96..................... 8,039,939
35,000,000 Wachovia Corp., 5.96%, 8/3/95..................... 35,000,000
-------------
TOTAL MEDIUM-TERM AND SHORT-TERM NOTES
(Cost $292,038,628)............................ 292,054,621
-------------
---------------------------------------------------------------------------------------------
TOTAL INVESTMENT PORTFOLIO - 100.0%
(Cost $1,510,577,329) (a)...................... 1,509,072,179
=============
<FN>
(a) The cost for federal income tax purposes was $1,510,577,329. At June 30, 1995,
net unrealized depreciation for all securities based on tax cost was $1,505,150.
This consisted of aggregate gross unrealized appreciation for all securities
in which there was an excess of market value over tax cost of $421,671 and
aggregate gross unrealized depreciation for all securities in which there was
an excess of tax cost over market value of $1,926,821.
* Floating rate notes are securities whose yields vary with a designated market
index or market rate, such as the coupon-equivalent of the Treasury bill rate.
These securities are shown at their rate as of June 30, 1995.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
<TABLE>
SCUDDER CASH INVESTMENT TRUST
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------------
JUNE 30, 1995
--------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments, at value (identified cost $1,510,577,329)
(Note A)............................................. $1,509,072,179
Cash.................................................... 2,912,361
Receivables:
Fund shares sold..................................... 5,217,415
Interest............................................. 9,475,510
Other assets............................................ 23,949
--------------
Total assets...................................... 1,526,701,414
LIABILITIES
Payables:
Fund shares redeemed................................. $5,105,800
Dividends............................................ 336,814
Accrued management fee (Note B)...................... 526,284
Other accrued expenses (Note B)...................... 460,538
----------
Total liabilities................................. 6,429,436
--------------
Net assets, at value.................................... $1,520,271,978
==============
NET ASSETS
Net assets consist of:
Unrealized depreciation on investments............... $ (1,505,150)
Shares of beneficial interest........................ 15,215,394
Additional paid-in capital........................... 1,506,561,734
--------------
Net assets, at value.................................... $1,520,271,978
==============
NET ASSET VALUE, offering and redemption price per
share ($1,520,271,978 / 1,521,539,366 outstanding
shares of beneficial interest, $.01 par value,
unlimited number of shares authorized)............... $1.00
=====
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
-----------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
-----------------------------------------------------------------------------------
YEAR ENDED JUNE 30, 1995
-----------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest................................................. $87,977,495
Expenses:
Management fee (Note B).................................. $6,372,462
Services to shareholders (Note B)........................ 4,911,979
Trustees' fees (Note B).................................. 38,232
Custodian and accounting fees (Note B)................... 264,804
Reports to shareholders.................................. 411,633
State registration....................................... 110,697
Legal.................................................... 22,652
Auditing................................................. 40,259
Other.................................................... 44,155 12,216,873
------------------------
Net investment income.................................... 75,760,622
-----------
NET UNREALIZED LOSS ON INVESTMENT TRANSACTIONS
Net unrealized depreciation on investments during the
period................................................ (1,328,106)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..... $74,432,516
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
<TABLE>
SCUDDER CASH INVESTMENT TRUST
------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
------------------------------------------------------------------------------------------
<CAPTION>
YEARS ENDED JUNE 30,
----------------------------------
INCREASE (DECREASE) IN NET ASSETS 1995 1994
------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income............................... $ 75,760,622 $ 33,951,880
Net unrealized depreciation on investment
transactions during the period................... (1,328,106) (930,801)
--------------- ---------------
Net increase in net assets resulting
from operations.................................. 74,432,516 33,021,079
--------------- ---------------
Distributions to shareholders from net
investment income ($.048 and $.027
per share, respectively)......................... (75,760,622) (33,951,880)
--------------- ---------------
Fund share transactions at net asset
value of $1.00 per share:
Shares sold......................................... 3,872,417,037 3,575,327,981
Net asset value of shares issued to
shareholders in reinvestment of
distributions.................................... 70,361,737 31,052,806
Shares redeemed .................................... (3,851,655,789) (3,293,515,684)
--------------- ---------------
Net increase in net assets from Fund share
transactions. ................................... 91,122,985 312,865,103
--------------- ---------------
INCREASE IN NET ASSETS.............................. 89,794,879 311,934,302
Net assets at beginning of period................... 1,430,477,099 1,118,542,797
--------------- ---------------
NET ASSETS AT END OF PERIOD......................... $ 1,520,271,978 $ 1,430,477,099
=============== ===============
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
The following table includes selected data for a share outstanding throughout each period and other
performance information derived from the financial statements.
<CAPTION>
YEARS ENDED JUNE 30,
------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period....... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net investment income....... .048 .027 .027 .047 .069 .080 .082 .064 .056 .071
Distributions from
net investment income
and net realized
capital gains............. (.048) (.027) (.027) (.047) (.069) (.080) (.082) (.064) (.056) (.071)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period............. $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (%)............ 4.90 2.77 2.75 4.76 7.13 8.23 8.49 6.59 5.71 7.25
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end
of year ($ millions)...... 1,520 1,430 1,119 1,361 1,736 1,644 1,563 1,370 1,144 1,104
Ratio of operating
expenses to average
daily net assets (%)...... .78 .82 .78 .70 .66 .67 .66 .68 .68 .65
Ratio of net investment
income to average
daily net assets (%)...... 4.84 2.78 2.72 4.58 6.91 7.93 8.21 6.44 5.55 7.01
</TABLE>
13
<PAGE>
SCUDDER CASH INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
A. SIGNIFICANT ACCOUNTING POLICIES
--------------------------------------------------------------------------------
Scudder Cash Investment Trust (the "Fund") is organized as a Massachusetts
business trust and is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment company. The policies
described below are followed consistently by the Fund in the preparation of its
financial statements in conformity with generally accepted accounting
principles.
SECURITY VALUATION. Portfolio securities which have remaining maturities of
sixty days or less are valued by the amortized cost method permitted in
accordance with Rule 2a-7 under the Investment Company Act of 1940. Portfolio
securities for which market quotations are readily available and which have
remaining maturities of sixty-one days or more from the date of valuation are
valued at the calculated mean between the over-the-counter bid and asked
prices, using quotations supplied by independent registered broker/dealers. On
the sixtieth day prior to maturity and thereafter until maturity, securities
originally purchased with more than sixty days remaining to maturity are valued
at amortized cost calculated daily, based upon the market valuation of the
securities on the sixty-first day prior to maturity. Other securities are
appraised at fair value as determined in good faith by or on behalf of the
Trustees of the Fund. Repurchase agreements are valued at identified cost
which, when combined with accrued interest receivable, approximates market.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
certain banks and broker/dealers whereby the Fund, through its custodian,
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, depending on the maturity of the repurchase
agreement and the underlying collateral, is equal to at least 100.5% of the
resale price.
FEDERAL INCOME TAXES. The Fund's policy is to comply with the requirements of
the Internal Revenue Code which are applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders. The
Fund accordingly paid no federal income taxes and no provision for federal
income taxes was required.
DISTRIBUTION OF INCOME AND GAINS. All of the net investment income of the Fund
is declared as a dividend to shareholders of record as of
14
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
twelve o'clock noon on each business day and is paid to shareholders monthly.
During any particular year, net realized gains from investment transactions, in
excess of available capital loss carryforwards, would be taxable to the Fund if
not distributed and, therefore, will be distributed to the shareholders.
An additional distribution may be made to the extent necessary to avoid the
payment of a four percent federal excise tax.
The Fund uses the specific identification method for determining realized gain
or loss on investments for both financial and federal income tax reporting
purposes.
OTHER. Investment transactions are accounted for on a trade-date basis (which
in most instances is the same as the settlement date). Interest income is
accrued pro rata to maturity. All premiums and discounts are amortized/accreted
for both tax and financial reporting purposes.
B. RELATED PARTIES
--------------------------------------------------------------------------------
Under the Fund's Investment Advisory Agreement (the "Agreement") with Scudder
Stevens & Clark, Inc. (the "Adviser"), the Fund agrees to pay the Adviser a fee
equal to an annual rate of 0.50% of the first $250,000,000 of the Fund's
average daily net assets, 0.45% of the next $250,000,000 of such net assets,
0.40% of the next $500,000,000 of such net assets and 0.35% of such net assets
in excess of $1,000,000,000, computed and accrued daily and payable monthly.
As manager of the assets of the Fund, the Adviser directs the investments of
the Fund in accordance with its investment objectives, policies, and
restrictions. The Adviser determines the securities, instruments, and other
contracts relating to investments to be purchased, sold or entered into by the
Fund. In addition to portfolio management services, the Adviser provides
certain administrative services in accordance with the Management Agreement.
The Agreement also provides that if the Fund's expenses, exclusive of taxes,
interest and extraordinary expenses, exceed specified limits, such excess, up
to the amount of the management fee, will be paid by the Adviser. For the year
ended June 30, 1995, the fee pursuant to the Agreement amounted to $6,372,462
which was equivalent to an annual effective rate of 0.41% of the Fund's average
daily net assets.
15
<PAGE>
SCUDDER CASH INVESTMENT TRUST
--------------------------------------------------------------------------------
Scudder Service Corporation ("SSC"), a wholly-owned subsidiary of the Adviser,
is the transfer, dividend paying and shareholder service agent for the Fund.
For the year ended June 30, 1995, the amount charged to the Fund by SSC
aggregated $4,218,266, of which $367,736 is unpaid at June 30, 1995.
Effective August 1, 1994, Scudder Fund Accounting Corporation ("SFAC"), a
wholly-owned subsidiary of the Adviser, assumed responsibility for determining
the daily net asset value per share and maintaining the portfolio and general
accounting records for the Fund. For the year ended June 30, 1995, the amount
charged to the Fund by SFAC aggregated $99,328, of which $8,934 is unpaid at
June 30, 1995.
The Fund pays each Trustee not affiliated with the Adviser $4,000 annually
plus specified amounts for attended board and committee meetings. For the year
ended June 30, 1995, Trustees' fees aggregated $38,232.
16
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------
TO THE TRUSTEES AND SHAREHOLDERS OF SCUDDER CASH INVESTMENT TRUST:
We have audited the accompanying statement of assets and liabilities of Scudder
Cash Investment Trust, including the investment portfolio, as of June 30, 1995,
and the related statement of operations for the year then ended, the statements
of changes in net assets for each of the two years in the period then ended and
the financial highlights for each of the ten years in the period then ended.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of June 30, 1995, by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Scudder Cash Investment Trust as of June 30, 1995, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each of
the ten years in the period then ended, in conformity with generally accepted
accounting principles.
Boston, Massachusetts COOPERS & LYBRAND L.L.P.
August 1, 1995
17
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19
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20
<PAGE>
OFFICERS AND TRUSTEES
--------------------------------------------------------------------------------
David S. Lee*
President and Trustee
Cuyler W. Findlay*
Vice President and Trustee
Dudley H. Ladd*
Vice President and Trustee
Henry P. Becton, Jr.
Trustee; President and
General Manager, WGBH
Educational Foundation
Dawn-Marie Driscoll
Trustee; Attorney and
Corporate Director
Peter B. Freeman
Trustee; Corporate
Director and Trustee
George M. Lovejoy, Jr.
Trustee; President and
Director, Fifty Associates
Stephen L. Akers*
Vice President
Jerard K. Hartman*
Vice President
Thomas W. Joseph*
Vice President
Thomas F. McDonough*
Vice President and Secretary
Pamela A. McGrath*
Vice President and Treasurer
Robert T. Neff*
Vice President
Edward J. O'Connell*
Vice President and Assistant Treasurer
Robert E. Pruyne*
Vice President
Coleen Downs Dinneen*
Assistant Secretary
*Scudder, Stevens & Clark, Inc.
21
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT PRODUCTS AND SERVICES
--------------------------------------------------------------------------------
The Scudder Family of Funds
-----------------------------------------------------------------------------------------------------------------
<C> <C>
Money Market Income
Scudder Cash Investment Trust Scudder Emerging Markets Income Fund
Scudder U.S. Treasury Money Fund Scudder GNMA Fund
Tax Free Money Market+ Scudder Income Fund
Scudder Tax Free Money Fund Scudder International Bond Fund
Scudder California Tax Free Money Fund* Scudder Short Term Bond Fund
Scudder New York Tax Free Money Fund* Scudder Short Term Global Income Fund
Tax Free+ Scudder Zero Coupon 2000 Fund
Scudder California Tax Free Fund* Growth
Scudder High Yield Tax Free Fund Scudder Capital Growth Fund
Scudder Limited Term Tax Free Fund Scudder Development Fund
Scudder Managed Municipal Bonds Scudder Global Fund
Scudder Massachusetts Limited Term Tax Free Fund* Scudder Global Small Company Fund
Scudder Massachusetts Tax Free Fund* Scudder Gold Fund
Scudder Medium Term Tax Free Fund Scudder Greater Europe Growth Fund
Scudder New York Tax Free Fund* Scudder International Fund
Scudder Ohio Tax Free Fund* Scudder Latin America Fund
Scudder Pennsylvania Tax Free Fund* Scudder Pacific Opportunities Fund
Growth and Income Scudder Quality Growth Fund
Scudder Balanced Fund Scudder Value Fund
Scudder Growth and Income Fund The Japan Fund
Retirement Plans and Tax-Advantaged Investments
-----------------------------------------------------------------------------------------------------------------
IRAs 403(b) Plans
Keogh Plans SEP-IRAs
Scudder Horizon Plan+++* (a variable annuity) Profit Sharing and Money Purchase
401(k) Plans Pension Plans
Closed-End Funds#
-----------------------------------------------------------------------------------------------------------------
The Argentina Fund, Inc. The Latin America Dollar Income Fund, Inc.
The Brazil Fund, Inc. Montgomery Street Income Securities, Inc.
The First Iberian Fund, Inc. Scudder New Asia Fund, Inc.
The Korea Fund, Inc. Scudder New Europe Fund, Inc.
Scudder World Income
Opportunities Fund, Inc.
Institutional Cash Management
-----------------------------------------------------------------------------------------------------------------
Scudder Institutional Fund, Inc.
Scudder Fund, Inc.
Scudder Treasurers Trust(TM)++
-----------------------------------------------------------------------------------------------------------------
For complete information on any of the above Scudder funds, including management fees and expenses, call or
write for a free prospectus. Read it carefully before you invest or send money. +A portion of the income
from the tax-free funds may be subject to federal, state, and local taxes. *Not available in all states. +++A
no-load variable annuity contract provided by Charter National Life Insurance Company and its affiliate,
offered by Scudder's insurance agencies, 1-800-225-2470. #These funds, advised by Scudder, Stevens & Clark,
Inc. are traded on various stock exchanges. ++For information on Scudder Treasurers Trust,(TM) an institutional
cash management service that utilizes certain portfolios of Scudder Fund, Inc. ($100,000 minimum), call
1-800-541-7703.
22
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
HOW TO CONTACT SCUDDER
--------------------------------------------------------------------------------
<C> <C>
Account Service and Information
-------------------------------------------------------------------------------------------------------------
For existing account service and transactions
SCUDDER INVESTOR RELATIONS
1-800-225-5163
For account updates, prices, yields, exchanges, and redemptions
SCUDDER AUTOMATED INFORMATION LINE (SAIL)
1-800-343-2890
Investment Information
-------------------------------------------------------------------------------------------------------------
To receive information about the Scudder funds, for additional
applications and prospectuses, or for investment questions
SCUDDER INVESTOR RELATIONS
1-800-225-2470
For establishing 401(k) and 403(b) plans
SCUDDER DEFINED CONTRIBUTION SERVICES
1-800-323-6105
Please address all correspondence to
-------------------------------------------------------------------------------------------------------------
THE SCUDDER FUNDS
P.O. BOX 2291
BOSTON, MASSACHUSETTS
02107-2291
Or stop by a Scudder Funds Center
-------------------------------------------------------------------------------------------------------------
Many shareholders enjoy the personal, one-on-one service of the
Scudder Funds Centers. Check for a Funds Center near you--they can
be found in the following cities:
Boca Raton New York
Boston Portland, OR
Chicago San Diego
Cincinnati San Francisco
Los Angeles Scottsdale
-------------------------------------------------------------------------------------------------------------
For information on Scudder For information on Scudder
Treasurers Trust,(TM) an institutional Institutional Funds,* funds
cash management service for designed to meet the broad
corporations, non-profit investment management and
organizations and trusts that uses service needs of banks and
certain portfolios of Scudder Fund, other institutions, call
Inc.* ($100,000 minimum), call 1-800-854-8525.
1-800-541-7703.
-------------------------------------------------------------------------------------------------------------
Scudder Investor Relations and Scudder Funds Centers are services provided through Scudder
Investor Services, Inc., Distributor.
* Contact Scudder Investor Services, Inc., Distributor, to receive a
prospectus with more complete information, including management fees and
expenses. Please read it carefully before you invest or send money.
23
</TABLE>
<PAGE>
Celebrating Over 75 Years of Serving Investors
--------------------------------------------------------------------------------
Established in 1919 by Theodore Scudder, Sidney Stevens, and F. Haven
Clark, Scudder, Stevens & Clark was the first independent investment counsel
firm in the United States. Since its birth, Scudder's pioneering spirit and
commitment to professional long-term investment management have helped shape the
investment industry. In 1928, we introduced the nation's first no-load mutual
fund. Today we offer 36 pure no load(TM) funds, including the first
international mutual fund offered to U.S. investors.
Over the years, Scudder's global investment perspective and dedication to
research and fundamental investment disciplines have helped us become one of the
largest and most respected investment managers in the world. Though times have
changed since our beginnings, we remain committed to our long-standing
principles: managing money with integrity and distinction; keeping the interests
of our clients first; providing access to investments and markets that may not
be easily available to individuals; and making investing as simple and
convenient as possible through friendly, comprehensive service.
