Scudder Cash Investment Trust
Semiannual Report
December 31, 1996
Pure No-Load(TM) Funds
A money market fund for investors seeking stability and liquidity of capital and
current income.
A pure no-load(TM) fund with no commissions to buy, sell, or exchange shares.
<PAGE>
Table of Contents
2 In Brief
3 Letter from the Fund's President
4 Portfolio Management Discussion
6 Investment Portfolio
10 Financial Statements
13 Financial Highlights
14 Notes to Financial Statements
16 Shareholder Meeting Results
21 Officers and Trustees
22 Investment Products and Services
23 How to Contact Scudder
In Brief
o Scudder Cash Investment Trust provided a 4.59% 7-day net annualized yield as
of December 31, 1996.
o After the Federal Reserve declined to raise interest rates in September, we
increased the Fund's average maturity to capture higher yields.
o The Fund's total return for the period was 2.34%, compared with the 2.39%
six-month average return of the 292 taxable money funds tracked by Lipper
Analytical Services.
2-Scudder Cash Investment Trust
<PAGE>
Letter From the Fund's President
Dear Shareholders,
We hope you enjoy our newly redesigned shareholder report. The new format
is designed to enhance the attractiveness and readability of the reports. Let us
know what you think.
This semiannual report for Scudder Cash Investment Trust covers a period of
strength for both the U.S. economy and financial markets. The economy has been
experiencing an expansion of record length, and while a mild recession would not
be a surprise this year, there are few reasons to question the economy's
long-term strength. While the markets will always surge and dip in response to
short-term indicators, we believe many long-term structural factors such as
deregulation, globalization, and technology are setting the stage for an
extended period of global economic growth without harmful levels of inflation.
Money market funds generally provided attractive returns during the
semiannual period for those investors seeking a stable share price and an
interest-paying alternative to cash. For the six months covered by this report,
Scudder Cash Investment Trust's total return was 2.34%, compared with the 2.39%
six-month average return of the 292 taxable money funds tracked by Lipper
Analytical Services. Money funds consistently attracted assets, ending the year
at approximately $910 billion in total assets, according to IBC's Money Fund
Report.
I'd like to take this opportunity to introduce you to the new Lead
Portfolio Manager of Scudder Cash Investment Trust, David Wines. David joins the
management team with eight years of investment experience. Robert Neff, who
joined Scudder in 1972, has retired. We thank him for his many outstanding years
of service, and wish him the best.
Finally, Scudder recently launched an innovative new product called Scudder
Pathway Series. Pathway Series is a collection of four distinct mutual fund
portfolios -- Conservative, Growth, Balanced, and International -- that offers
flexibility, diversification, and simplicity. Each portfolio invests in a select
mix of Scudder Funds designed to help achieve a specific investment objective.
For more information on this and other Scudder Fund products and services,
please turn to page 22. Should you have any questions about your Fund or
investments, please contact a Scudder Investor Relations representative at
1-800-225-2470, or access our Web site at http://funds.scudder.com.
Sincerely,
/s/David S. Lee
David S. Lee
President,
Scudder Cash Investment Trust
3-Scudder Cash Investment Trust
<PAGE>
Portfolio Management Discussion
Dear Shareholders,
The second half of 1996 provided money market investors with respectable yields,
although a much anticipated increase in short-term interest rates failed to
materialize. Scudder Cash Investment Trust provided a 4.59% 7-day net annualized
yield as of December 31, 1996, translating into 4.69% for the same period with
the reinvestment of dividends. The Fund's total return for the six-month period
was 2.34%, compared with the 2.39% average return of the 292 taxable money funds
tracked by Lipper Analytical Services.
The Market Mood
1996 was a noteworthy year for U.S. stocks, with enthusiasm for bonds dimmed
considerably as a result. While stock market investing proved rewarding, with
the S&P 500 Index increasing almost 23% for the year, the ride was nothing less
than turbulent. During the six months covered by this report, stock returns were
on occasion hit hard by inflation fears arising from surprisingly strong
economic indicators. Bond returns for the year were generally mediocre, as
long-term rates ended the year higher, although fixed-income prices ratcheted
down somewhat over the last six months of 1996.
Money funds provided a haven for those uncomfortable with the market's
short-term gyrations, as well as for those who desired a convenient resting
place for their savings. During the six-month period, $82 billion flowed into
money funds overall, with industry-wide money fund assets reaching $910 billion
by the end of December.
Money managers spent much of the year with their eyes on the Federal Reserve,
anticipating a potential interest rate hike. As a result, many money funds
defensively shortened their average maturities. Once the Federal Reserve
declined to raise rates in September, sentiment shifted and money fund managers
began extending maturities to capture higher yields.
Locating Opportunities
Scudder Cash Investment Trust's average maturity hovered in the 40-45 day range
in September in anticipation of possible Federal Reserve Board action. After the
Fed's September meeting, we increased the Fund's average maturity. While the
defensive position prepared us for a rate increase, the tradeoff was the lost
opportunity to capture the superior yields offered by longer-maturity
instruments. As of December 31, the Fund's average maturity stood at 50 days.
At the close of the period, 69% of the Fund was invested in commercial paper,
much of which was in the 90-day maturity range to provide attractive yields.
Commercial paper with one-year maturities also provided a boost to the Fund's
yield.
The remainder of the Fund's assets was principally invested in U.S. government
agency obligations, and short- to medium-term notes. A small portion (2%) was
invested in repurchase agreements.
We remain committed to providing a portfolio of high-quality, short-term
investments in order to maintain the Fund's stable share price and provide a
competitive yield. As a part of this commitment, Scudder Cash Investment Trust
has decided not to renew its AAAm rating from Standard & Poor's, effective
4-Scudder Cash Investment Trust
<PAGE>
February 1, 1997. Only a limited number of money market funds in the U.S. have
applied for this designation, which has hindered the Fund's investment
flexibility and yield. Even without the S&P rating, Scudder Cash Investment
Trust will continue to be prudently managed and focused on high quality
instruments. The Fund will continue to be governed not only by Scudder's own
quality guidelines, but also by strict regulations imposed by the Securities and
Exchange Commission designed to promote safety and liquidity.
The Coming Months
Absent any unforeseen shocks, 1997 should provide investors with moderate
economic growth, stable to higher stock prices, and stable to moderately lower
interest rates. While always a possibility, we don't expect the Federal Reserve
to lower short-term interest rates any time soon.
In this environment, we plan to favor money market securities at the longer end
of the maturity spectrum in order to 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. We believe Scudder Cash
Investment Trust remains an appropriate vehicle for meeting your short-term
investment needs.
Shareholder Meeting
Results
At the November 5, 1996 Special Meeting, shareholders elected seven Trustees of
the Fund, the proposal of which appeared in your proxy statement. The selection
of Coopers & Lybrand L.L.P. as the Fund's independent accountants for the fiscal
year ending June 30, 1997 was ratified, and a new Investment Advisory Agreement,
as well as changes to certain fundamental investment policies, were approved.
Please see the table entitled "Shareholder Meeting Results" on page 16 for more
information.
Please call a Scudder representative at 1-800-225-2470 should you have any
questions about your Fund. Thank you for choosing Scudder Cash Investment Trust.
Sincerely,
Your Portfolio Management Team
/s/David B. Wines /s/Stephen L. Akers
David B. Wines Stephen L. Akers
/s/Debra A. Hanson /s/K. Sue Cote
Debra A. Hanson K. Sue Cote
5-Scudder Cash Investment Trust
<PAGE>
Investment Portfolio as of December 31, 1996 (Unaudited)
Principal Value ($)
Amount ($) (Note A)
- --------------------------------------------------------------------------------
Repurchase Agreements 1.7%
- --------------------------------------------------------------------------------
Repurchase Agreement with Donaldson,
Lufkin & Jenrette dated 12/31/96 at
6.7%, to be repurchased at $18,834,008
on 1/2/97, collateralized by a
$17,585,000 U.S. Treasury Note, 7.75%,
1/31/00 .......................................... 18,827,000 18,827,000
Repurchase Agreement with State Street
Bank and Trust Company dated 12/31/96
at 6%, to be repurchased at $5,035,678
on 1/2/97, collateralized by a
$4,745,000 U.S. Treasury Bond, 4.745%,
2/15/23 .......................................... 5,034,000 5,034,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $23,861,000) 23,861,000
- --------------------------------------------------------------------------------
Commercial Paper 68.5%
- --------------------------------------------------------------------------------
Consumer Staples 1.0%
Consumer Specialties
Clorox Co., 5.37%*, 3/19/97 ........................ 15,200,000 15,025,182
-----------
Communications 4.3%
Telephone/Communications
Ameritech Corp., 5.19%*, 1/9/97 .................... 42,000,000 41,945,530
Ameritech Corp., 5.37%*, 2/14/97 ................... 20,000,000 19,866,748
-----------
61,812,278
-----------
Financial 53.5%
Banks 10.4%
Abbey National North America, 5.5%, 11/26/97 ....... 15,000,000 15,019,867
Abbey National North America, 5.5%, 11/26/97 ....... 25,000,000 25,033,116
Barclays U.S. Funding Corp., 5.35%*, 2/28/97 ....... 15,000,000 14,869,661
Beneficial Corp., 5.29%*, 1/29/97 .................. 35,000,000 34,851,617
Chase Bank USA, 5.55%, 11/13/97 .................... 10,000,000 10,004,167
Credit Agricole USA Inc., 4.49%*, 1/6/97 ........... 25,000,000 24,981,319
Dresdner U.S. Finance Inc., 5.31%*, 2/11/97 ........ 25,000,000 24,846,217
-----------
149,605,964
-----------
Insurance 3.3%
Prudential Funding Corp., 4.63%*, 1/7/97 ........... 30,000,000 29,973,000
Prudential Funding Corp., 5.32%*, 4/8/97 ........... 18,000,000 17,743,041
-----------
47,716,041
-----------
Business Finance 9.5%
Ciesco L.P., 5.26%*, 1/7/97 ........................ 35,000,000 34,964,252
Ciesco L.P., 5.19%*, 1/9/97 ........................ 15,000,000 14,980,547
Ciesco L.P., 5.43%*, 2/6/97 ........................ 20,000,000 19,889,000
Corporate Asset Funding Co. Inc., 5.39%*, 1/9/97 ... 20,000,000 19,973,099
New Center Asset Trust, 5.34%*, 1/8/97 ............. 10,000,000 9,988,155
The accompanying notes are an integral part of the financial statements.
6 - SCUDDER CASH INVESTMENT TRUST
<PAGE>
Principal Value ($)
Amount ($) (Note A)
- --------------------------------------------------------------------------------
New Center Asset Trust, 5.41%*, 2/19/97 ............ 30,000,000 29,776,248
New Center Asset Trust, 5.32%*, 5/6/97 ............. 7,000,000 6,872,043
-----------
136,443,344
-----------
Consumer Finance 9.9%
Ford Motor Credit Corp., 5.4%*, 2/25/97 ............ 30,000,000 29,750,285
General Electric Capital Corp., 5.19%*, 1/30/97 .... 25,000,000 24,892,257
General Electric Capital Corp., 5.37%*, 3/5/97 ..... 30,000,000 29,716,308
Household Finance Corp., 5.28%*, 1/16/97 ........... 38,000,000 37,910,952
Pitney Bowes Credit Corp., 5.37%*, 1/15/97 ......... 20,000,000 19,955,333
-----------
142,225,135
-----------
Other Financial Companies 20.4%
AIG Funding Inc., 5.35%*, 1/31/97 .................. 30,000,000 29,862,306
American General Finance Corp., 5.2%*, 1/8/97 ...... 35,000,000 34,959,583
Associates Corp. of North America, 4.56%*, 1/7/97 .. 12,000,000 11,989,380
Associates Corp. of North America, 5.26%*, 1/14/97 . 28,000,000 27,942,800
Associates Corp. of North America, 6.875%, 1/15/97 . 5,000,000 5,002,299
Associates Corp. of North America, 5.37%*, 3/6/97 .. 25,000,000 24,759,932
Centric Funding Corp. 5.21%*, 1/14/97 .............. 20,000,000 19,959,556
Centric Funding Corp., 5.44%*, 1/21/97 ............. 30,000,000 29,905,147
Centric Funding Corp., 5.53%*, 2/18/97 ............. 20,000,000 19,850,550
Matterhorn Capital Corp., 5.53%*, 1/17/97 .......... 30,000,000 29,921,798
Receivables Capital Corp., 5.46%*, 1/16/97 ......... 20,000,000 19,951,555
Receivables Capital Corp., 5.59%*, 2/21/97 ......... 20,000,000 19,839,666
Transamerica Finance Corp., 5.31%*, 1/22/97 ........ 20,000,000 19,935,342
-----------
293,879,914
-----------
Media 1.7%
Broadcasting & Entertainment
Walt Disney Co., 5.36%*, 2/20/97 ................... 25,000,000 24,811,527
-----------
Manufacturing 1.7%
Chemicals
E.I. du Pont De Nemours & Co., 5.18%*, 1/8/97 ...... 25,000,000 24,971,244
-----------
Energy 3.5%
Oil Companies
Chevron Oil Finance Co., 5.41%*, 1/14/97 ........... 35,000,000 34,926,500
Chevron Transport Corp., 4.66%*, 1/7/97 ............ 15,000,000 14,986,425
-----------
49,912,925
-----------
The accompanying notes are an integral part of the financial statements.
7 - SCUDDER CASH INVESTMENT TRUST
<PAGE>
Principal Value ($)
Amount ($) (Note A)
- --------------------------------------------------------------------------------
Utilities 2.8%
Electric Utilities
Carolina Power & Light, 5.37%*, 3/7/97 ............. 21,200,000 20,993,321
Florida Power & Light Co., 5.43%*, 1/7/97 .......... 20,000,000 19,978,922
-----------
40,972,243
- --------------------------------------------------------------------------------
Total Commercial Paper (Cost $987,380,936) 987,375,797
- --------------------------------------------------------------------------------
Certificates Of Deposit 1.0%
- --------------------------------------------------------------------------------
Mellon Bank Corp., 6.13%, 9/9/97 (Cost $15,000,000) 15,000,000 15,057,135
-----------
U. S. Government Agency Obligations 13.0%
- --------------------------------------------------------------------------------
Federal Farm Credit Bank, 5.6%, 11/3/97 ............ 10,000,000 9,993,700
Federal National Mortgage Association, 5.149%,
7/14/99** ........................................ 56,000,000 55,703,200
Student Loan Marketing Association, 5.66%, 2/14/97** 25,000,000 25,026,741
Student Loan Marketing Association, 5.51%, 10/30/97** 50,000,000 50,090,500
Student Loan Marketing Association, 5.14%, 7/12/99** 46,500,000 46,244,250
- --------------------------------------------------------------------------------
Total U.S. Government Agency Obligations (Cost
$187,504,913) 187,058,391
- --------------------------------------------------------------------------------
Medium-Term and Short-Term Notes 15.8%
- --------------------------------------------------------------------------------
Banc One Corp., 5.56%, 3/25/97 ..................... 20,000,000 19,996,093
Bank of America Illinois, 5.7%, 5/28/97 ............ 15,000,000 15,003,161
Bank of New York, 5.365%, 6/10/97 .................. 10,000,000 9,995,107
FCC National Bank Note, 5.73%, 8/21/97 ............. 10,000,000 10,009,707
FCC National Bank Note, 5.59%, 11/7/97 ............. 31,000,000 31,021,538
Fifth Third Bancorp, 5.36%, 1/17/97 ................ 25,000,000 24,999,877
Ford Motor Credit Co., 5.67%, 7/15/97 .............. 8,883,796 8,883,796
General Electric Capital Corp., 7.625%, 1/10/97 .... 5,000,000 5,002,871
General Electric Capital Corp., 5.29%, 1/13/97 ..... 12,250,000 12,249,701
Huntington National Bank, 6.2%, 7/8/97 ............. 5,000,000 5,014,660
Huntington National Bank, 5.85%, 9/30/97 ........... 15,000,000 15,033,683
Pittsburgh National Bank, 5.322%, 7/1/97 ........... 20,000,000 19,990,000
United States National Bank of Oregon, 5.35%, 1/17/97 25,000,000 25,000,093
United States National Bank of Oregon, 5.35%, 1/21/97 25,000,000 24,999,530
- --------------------------------------------------------------------------------
Total Medium-Term and Short-Term Notes (Cost
$227,110,335) 227,199,817
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total Investment Portfolio - 100.0% (Cost
$1,440,857,184) (a) 1,440,552,140
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
8 - SCUDDER CASH INVESTMENT TRUST
<PAGE>
(a) The cost for federal income tax purposes was $1,440,857,184. At December
31, 1996, net unrealized depreciation for all securities based on tax cost
was $305,044. This consisted of aggregate gross unrealized appreciation
for all securities in which there was an excess of market value over tax
cost of $381,782 and aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over market value of
$686,826.
* Bond equivalent yield to maturity; not a coupon rate.
** 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 December 31,
1996.
The accompanying notes are an integral part of the financial statements.
9 - SCUDDER CASH INVESTMENT TRUST
<PAGE>
Financial Statements
Statement of Assets and Liabilities
as of December 31, 1996 (Unaudited)
Assets
- --------------------------------------------------------------------------------
Investments, at value (identified cost
$1,440,857,184) (Note A) ............. $ 1,440,552,140
Cash ................................... 2,394,580
Receivable for Fund shares sold ........ 29,311,921
Interest receivable .................... 7,264,035
Other assets ........................... 23,950
---------------
Total assets ........................... 1,479,546,626
Liabilities
- --------------------------------------------------------------------------------
Payable for Fund shares redeemed ....... 15,474,283
Dividends payable ...................... 375,880
Accrued management fee (Note B) ........ 518,558
Other accrued expenses (Note B) ........ 620,168
---------------
Total liabilities ...................... 16,988,889
---------------------------------------------------------------
Net assets, at value $ 1,462,557,737
---------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
Net assets consist of:
Unrealized depreciation on investments . $ (305,044)
Paid-in capital ........................ 1,462,862,781
---------------------------------------------------------------
Net assets, at value $ 1,462,557,737
---------------------------------------------------------------
Net Asset Value
- --------------------------------------------------------------------------------
Net Asset Value, offering and redemption
price per share ($1,462,557,737 /
1,462,616,982 outstanding shares
of beneficial interest, $.01 par
value, unlimited number of shares ---------------
authorized) .......................... $ 1.00
---------------
The accompanying notes are an integral part of the financial statements.
10 - SCUDDER CASH INVESTMENT TRUST
<PAGE>
Statement of Operations
six months ended December 31, 1996 (Unaudited)
Investment Income
- --------------------------------------------------------------------------------
Interest ............................... $ 39,093,332
---------------
Expenses:
Management fee (Note B) ................ 2,955,275
Services to shareholders (Note B) ...... 2,680,345
Custodian and accounting fees (Note B) . 122,133
Trustees' fees and expenses (Note B) ... 18,085
Reports to shareholders ................ 179,062
Registration fees ...................... 43,628
Legal .................................. 23,708
Auditing ............................... 20,978
Other .................................. 6,700
---------------
6,049,914
---------------------------------------------------------------
Net investment income 33,043,418
---------------------------------------------------------------
Unrealized gain on investment transactions
- --------------------------------------------------------------------------------
Net unrealized appreciation during the
period on investments ................ 931,768
---------------------------------------------------------------
Net increase in net assets resulting
from operations $ 33,975,186
---------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
11 - SCUDDER CASH INVESTMENT TRUST
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended
December 31, Year Ended
1996 June 30, 1996
Increase (Decrease) in Net Assets (Unaudited)
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income ........................................ $ 33,043,418 $ 68,809,419
Net unrealized appreciation on investment transactions
during the period .......................................... 931,768 268,338
--------------- ---------------
Net increase in net assets resulting from operations ......... 33,975,186 69,077,757
--------------- ---------------
Distributions to shareholders:
From net investment income ................................... (33,043,418) (68,809,419)
--------------- ---------------
Fund share transactions in net asset value of $1.00 per share:
Shares sold .................................................. 953,959,673 1,734,972,406
Net asset value of shares issued to shareholders in
reinvestment of .............................................. 30,586,507 64,180,974
distributions
Shares redeemed .............................................. (910,286,088) (1,932,327,819)
--------------- ---------------
Net increase (decrease) in net assets from Fund share
transactions ................................................. 74,260,092 (133,174,439)
--------------- ---------------
Increase (decrease) in net assets ............................ 75,191,860 (132,906,101)
Net assets at beginning of period ............................ 1,387,365,877 1,520,271,978
--------------- ---------------
Net assets at end of period .................................. $ 1,462,557,737 $ 1,387,365,877
--------------- ---------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
12 - SCUDDER CASH INVESTMENT TRUST
<PAGE>
Financial Highlights
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
<TABLE>
<CAPTION>
Six Months
Ended
December 31,
1996 Years Ended June 30,
(Unaudited) 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <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 $1.000
------------------------------------------------------------------------------------------
Net investment income ....... .023 .048 .048 .027 .027 .047 .069 .080 .082 .064 0.56
Distributions from net
investment income and net
realized capital gains ... (.023) (.048) (.048) (.027) (.027) (.047) (.069) (.080) (.082) (.064) (.056)
------------------------------------------------------------------------------------------
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 $1.000
- -------------------------------------------------------------------------------------------------------------------------
Total Return (%) ............ 2.34** 4.89 4.90 2.77 2.75 4.76 7.13 8.23 8.49 6.59 5.71
Ratios and Supplemental Data
Net assets, end of period ... 1,463 1,387 1,520 1,430 1,119 1,361 1,736 1,644 1,563 1,370 1,144
($ millions)
Ratio of operating expenses . .84* .83 .78 .82 .78 .70 .66 .67 .66 .68 .68
to average daily net
assets (%)
Ratio of net investment ..... 4.60* 4.79 4.84 2.78 2.72 4.58 6.91 7.93 8.21 6.44 5.55
income to average daily
net assets (%)
</TABLE>
* Annualized
** Not annualized
13 - SCUDDER CASH INVESTMENT TRUST
<PAGE>
Notes to Financial Statements (Unaudited)
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 Fund's financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management estimates.
The policies described below are followed consistently by the Fund in the
preparation of its financial statements.
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, 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 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.
14 - SCUDDER CASH INVESTMENT TRUST
<PAGE>
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 six months ended
December 31, 1996, the fee pursuant to the Agreement amounted to $2,955,275
which was equivalent to an annual effective rate of .41% of the Fund's average
daily net assets.
Scudder Service Corporation ("SSC"), a subsidiary of the Adviser, is the
transfer, dividend paying and shareholder service agent for the Fund. For the
six months ended December 31, 1996, the amount charged to the Fund by SSC
aggregated $1,453,990, of which $240,983 is unpaid at December 31, 1996.
Scudder Trust Company ("STC"), a subsidiary of the Adviser, provides
recordkeeping and other services in connection with certain retirement and
employee benefit plans invested in the Fund. For the six months ended December
31, 1996, the amount charged to the Fund by STC aggregated $766,315, of which
$138,410 is unpaid at December 31, 1996.
Scudder Fund Accounting Corporation ("SFAC"), a subsidiary of the Adviser, is
responsible for determining the daily net asset value per share and maintaining
the portfolio and general accounting records of the Fund. For the six months
December 31, 1996, the amount charged to the Fund by SFAC aggregated $52,083, of
which $8,742 is unpaid at December 31, 1996.
The Fund pays each Trustee not affiliated with the Adviser $4,000 annually plus
specified amounts for attended board and committee meetings. For the six months
ended December 31, 1996, Trustees' fees and expenses aggregated $18,085.
15 - SCUDDER CASH INVESTMENT TRUST
<PAGE>
Shareholder Meeting Results
A special meeting of shareholders of Scudder Cash Investment Trust was held on
Tuesday, November 5, 1996, at the offices of Scudder, Stevens & Clark, Inc.,
13th floor, Two International Place, Boston, MA. The five matters voted upon by
the shareholders and the resulting votes for each matter are presented below.
1. The election of seven Trustees to hold office until their respective
successors shall have been duly elected and qualified.
Trustee: Number of Votes:
-------- ----------------
For Withheld Broker Non-Votes*
--- -------- -----------------
David S. Lee 739,021,552 14,413,967 0
Henry P. Becton 736,041,874 17,393,644 0
E. Michael Brown 739,370,086 14,065,433 0
Dawn-Marie Driscoll 738,559,531 14,875,988 0
Peter B. Freeman 739,504,611 13,930,908 0
Dudley H. Ladd 736,085,274 17,350,245 0
George M. Lovejoy 739,327,176 14,108,342 0
2. Ratification or rejection of the action taken by the Board of Directors
in selecting Coopers & Lybrand L.L.P. as independent accountants for the
fiscal year ending June 30, 1997.
Number of Votes:
----------------
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
729,029,245 8,246,933 16,159,340 0
3. Approval or disapproval of the amendment of the Fund's Amended and
Restated Declaration of Trust.
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
691,679,109 33,609,925 28,081,525 64,959
4. Approval or disapproval of a new Investment Advisory Agreement between
the Fund and Scudder, Stevens & Clark, Inc.
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
701,186,011 26,292,286 25,957,221 0
16-Scudder Cash Investment Trust
<PAGE>
5. Approval or disapproval of the amendment and/or addition of certain
fundamental investment policies.
A. Amendments to the Fund's investment restriction with respect to
borrowing;
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
701,232,212 51,931,497 206,851 64,959
B. Amendments to the Fund's investment restriction with respect to
investments in real estate;
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
695,023,883 58,168,239 178,437 64,959
C. Amendment to the Fund's investment restriction relating to
underwriting securities;
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
703,279,458 49,912,664 178,437 64,959
D. Reclassification of and amendment to the Fund's investment
restriction relating to repurchase agreements;
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
699,938,441 53,253,681 178,437 64,959
E. Elimination of the Fund's investment restriction relating to the
Fund's participation in a trading account in securities;
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
701,975,507 51,216,614 178,437 64,959
F. Reclassification of and amendments to the Fund's investment
restriction with respect to investments in securities of issuers
in which management of the Fund or Scudder owns securities;
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
697,379,713 55,812,409 178,437 64,959
G. Reclassification of and amendment to the Fund's investment
restriction with respect to margin transactions;
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
693,474,820 59,717,302 178,437 64,959
17-Scudder Cash Investment Trust
<PAGE>
H. Amendment to the Fund's investment restriction regarding the issuance
of senior securities;
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
700,868,298 52,323,824 178,437 64,959
I. Reclassification of and amendments to the Fund's investment
restriction with respect to investments in issuers that have been in
operation for less than three years;
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
700,194,980 52,997,142 178,437 64,959
J. Elimination of the Fund's investment restriction with respect to
purchasing common stock or other voting securities;
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
698,391,955 54,800,167 178,437 64,959
K. Amendments to the Fund's investment restriction with respect to
concentration of its assets;
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
702,940,953 50,251,169 178,437 64,959
L. Elimination of the Fund's investment restriction which prohibits
investing for the purpose of controlling another company;
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
701,203,068 51,989,053 178,437 64,959
M. Amendments to the Fund's investment restriction with respect to
diversification.
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
702,248,229 50,943,893 178,437 64,959
- --------------------------------------------------------------------------------
* Broker non-votes are proxies received by the Fund from brokers or nominees
when the broker or nominee neither has received instructions from the beneficial
owner or other persons entitled to vote nor has discretionary power to vote on a
particular matter.
18-Scudder Cash Investment Trust
<PAGE>
This Page intentionally left blank.
19-Scudder Cash Investment Trust
<PAGE>
This Page intentionally left blank.
20-Scudder Cash Investment Trust
<PAGE>
Officers and Trustees
David S. Lee*
President and Trustee
Dudley H. Ladd*
Vice President and Trustee
E. Michael Brown*
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
Edward J. O'Connell*
Vice President and Assistant Treasurer
David Wines*
Vice President
*Scudder, Stevens & Clark, Inc.
21-Scudder Cash Investment Trust
<PAGE>
Investment Products and Services
The Scudder Family of Funds+++
Money Market
- ------------
Scudder U.S. Treasury Money Fund
Scudder Cash Investment Trust
Tax Free Money Market+
- ----------------------
Scudder Tax Free Money Fund
Scudder California Tax Free Money Fund*
Scudder New York Tax Free Money Fund*
Tax Free+
- ---------
Scudder Limited Term Tax Free Fund
Scudder Medium Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder High Yield Tax Free Fund
Scudder California Tax Free Fund*
Scudder Massachusetts Limited Term
Tax Free Fund*
Scudder Massachusetts Tax Free Fund*
Scudder New York Tax Free Fund*
Scudder Ohio Tax Free Fund*
Scudder Pennsylvania Tax Free Fund*
U.S. Income
- ------------
Scudder Short Term Bond Fund
Scudder Zero Coupon 2000 Fund
Scudder GNMA Fund
Scudder Income Fund
Scudder High Yield Bond Fund
Global Income
- -------------
Scudder Global Bond Fund
Scudder International Bond Fund
Scudder Emerging Markets Income Fund
U.S. Growth and Income
- ----------------------
Scudder Balanced Fund
Scudder Growth and Income Fund
U.S. Growth
- -----------
Value
Scudder Large Company Value Fund
Scudder Value Fund
Scudder Small Company Value Fund
Scudder Micro Cap Fund
Growth
Scudder Classic Growth Fund
Scudder Quality Growth Fund
Scudder Development Fund
Scudder 21st Century Growth Fund
Global Growth
- -------------
Worldwide
Scudder Global Fund
Scudder International Fund
Scudder Global Discovery Fund
Scudder Emerging Markets Growth Fund
Scudder Gold Fund
Regional
Scudder Greater Europe Growth Fund
Scudder Pacific Opportunities Fund
Scudder Latin America Fund
The Japan Fund
Asset Allocation
- ----------------
Scudder Pathway Conservative Portfolio
Scudder Pathway Balanced Portfolio
Scudder Pathway Growth Portfolio
Scudder Pathway International Portfolio
Retirement Programs
- -------------------
IRA
SEP IRA
SIMPLE IRA
Keogh Plan
401(k), 403(b) Plans
Scudder Horizon Plan *+++ +++
(a variable annuity)
Closed-End Funds#
- --------------------------------------------------------------------------------
The Argentina Fund, Inc.
The Brazil Fund, Inc.
The First Iberian Fund, Inc.
The Korea Fund, Inc.
The Latin America Dollar Income Fund, Inc.
Montgomery Street Income Securities, Inc.
Scudder New Asia Fund, Inc.
Scudder New Europe Fund, Inc.
Scudder World Income Opportunities
Fund, Inc.
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. +++Funds within categories are listed from expected
least to most risk. +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.
22-Scudder Cash Investment Trust
<PAGE>
How to Contact Scudder
Account Service and Information
- --------------------------------------------------------------------------------
For existing account services and transactions
Scudder Investor Relations -- 1-800-225-5163
For 24 hour account information, fund information, exchanges,
and an overview of all the services available to you
Scudder Electronic Account Services -- http://funds.scudder.com
For information about your Scudder accounts, exchanges and redemptions
Scudder Automated Information Line (SAIL) -- 1-800-343-2890
Investment Information
- --------------------------------------------------------------------------------
For information about the Scudder funds, including additional
applications and prospectuses, or for answers to investment
questions
Scudder Investor Relations -- 1-800-225-2470
[email protected]
Scudder's World Wide Web Site -- http://funds.scudder.com
For establishing 401(k) and 403(b) plans
Scudder Defined Contribution Services -- 1-800-323-6105
Scudder Brokerage Services
- --------------------------------------------------------------------------------
To receive information about this discount brokerage service and to
obtain an application
Scudder Brokerage Services* -- 1-800-700-0820
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 Chicago San Francisco
Boston New York
For information on Scudder Treasurers Trust(TM), an
institutional cash management service for corporations,
non-profit organizations and trusts which utilizes certain
portfolios of Scudder Fund, Inc.* ($100,000 minimum), call:
1-800-541-7703.
For information on Scudder Institutional Funds**, funds designed
to meet the broad investment management and service needs of
banks and other institutions, call:
1-800-854-8525.
Scudder Investor Relations and Scudder Funds Centers are services provided
through Scudder Investor Services, Inc., Distributor.
* Scudder Brokerage Services, Inc., 42 Longwater Drive, Norwell, MA 02061 --
Member NASD/SIPC.
** 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-Scudder Cash Investment Trust
<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 over 40 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.
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
