N-30D 1 flagcr.txt FLAG CASH RESERVE SEMI ANNUAL [LOGO OMITTED] Deutsche Asset Management [GRAPHIC OMITTED] Mutual Fund Semi-Annual Report September 30, 2001 Class A, B and C Shares Cash Reserve Prime Shares Cash Reserve Prime Shares -------------------------------------------------------------------------------- TABLE OF CONTENTS LETTER TO SHAREHOLDERS ................................ 3 CASH RESERVE PRIME SHARES Schedule of Investments ............................ 5 Statement of Assets and Liabilities ................13 Statement of Operations ............................14 Statements of Changes in Net Assets ................15 Financial Highlights ...............................16 Notes to Financial Statements ......................19 ------------------------------- The Fund is not insured by the FDIC and is not a deposit, obligation of or guaranteed by Deutsche Bank AG. The Fund is subject to investment risks, including possible loss of principal amount invested. ------------------------------- -------------------------------------------------------------------------------- 2 Cash Reserve Prime Shares -------------------------------------------------------------------------------- LETTER TO SHAREHOLDERS We are pleased to report on the progress of your Fund for the six months ended September 30, 2001. MARKET ACTIVITY The money markets were impacted primarily by the slowing US economy and the consequential actions of the Federal Reserve Board during the semi-annual period, including its aggressive interest rate cuts following the September 11 attacks. THE FEDERAL RESERVE BOARD CONTINUED ITS AGGRESSIVE EASING OF INTEREST RATES THROUGHOUT, CAUSING MONEY MARKET YIELDS TO DRAMATICALLY DECLINE. o After lowering the targeted federal funds rate three times during the first calendar quarter of 2001, the Federal Reserve Board cut interest rates five more times from April through September. The targeted federal funds rate stood at 3.00% on September 30, 2001. o Throughout, the Federal Reserve Board consistently cited falling corporate profits, declining business capital investment, slower economic growth abroad and weak consumer confidence in the US. o For several months, the Federal Reserve Board's aggressive easing of monetary policy had little desired impact on the US economy. The speed and extent of the domestic economic slowdown was more pronounced than the Federal Reserve Board anticipated. At the same time, foreign demand slowed. During the third calendar quarter, it appeared that fiscal stimulus was starting to take hold, and the US economy began showing signs of stabilizing. This initial economic rebound was stopped in its tracks by the September 11 attacks. o On September 17, the Federal Reserve Board made its third intra-meeting reduction of the year, one hour before the US equity markets re-opened after the longest suspension of activity since 1933. The Federal Reserve Board declared its intention to supply the necessary liquidity to ensure an orderly market. o This year's campaign of easing monetary policy was the most concentrated effort to rejuvenate the economy in the central bank's history. AS THE US ECONOMIC SLOWDOWN ACCELERATED AND THE EQUITY MARKETS CONTINUED TO SLIDE THROUGH MUCH OF THE SEMI-ANNUAL PERIOD, A DETERIORATION IN CREDIT QUALITY OF MANY CORPORATIONS ALSO IMPACTED THE MONEY MARKETS. o A number of companies were either downgraded or 'on watch' for possible downgrades by the rating agencies. o The purchase of high quality issues with little downgrade risk became both a challenge and an increasingly more important consideration for money market fund managers. INVESTMENT REVIEW We continued to manage the Fund conservatively, maintaining high portfolio quality, adjusting weighted average maturities in response to market conditions, and strictly limiting exposure to any particular issuer. Evidence of our insistence on these high investment standards can be found in Standard & Poor's (S&P) rating of the portfolio of which Cash Reserve Prime Shares is a class. The portfolio has received a 'AAAm' rating.3 This rating is the highest that S&P awards to money market funds. 7-DAY CURRENT YIELD (as of 9/30/01) Cash Reserve Prime Class A Shares 1 2.84% iMoneyNet First Tier Retail Money Funds Average 2 2.58% -------------------------------------------------------------------------------- 1 PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Yields will fluctuate. 'Current Yield' is computed pursuant to a SEC standardized formula and represents the income generated by an investment in the Fund over a seven day period. This income is then annualized. 2 Money Fund Report Averages, a service of iMoneyNet, Inc., are averages for categories of similar money market funds. 3 Ratings are subject to change and do not remove market risk. -------------------------------------------------------------------------------- 3 Cash Reserve Prime Shares -------------------------------------------------------------------------------- LETTER TO SHAREHOLDERS Our strategy in this Fund continued to be concentrated on investing in high quality issues. As of September 30, 2001, 70.83% of the Prime Series was invested in securities rated A1+/P1 and 16.14% in securities rated A1/P1, by S&P and Moody's. The remaining 13.03% of the Series was primarily invested in AAA-rated money market funds and federal agency securities with long-term AAA-ratings, as rated by S&P and Moody's. We successfully navigated through the semi-annual period's credit quality problems and the huge volume of downgrades without negative impact to this Series. Our credit staff was especially aggressive in anticipating potential problems by placing maturity caps on several companies' securities that were subsequently downgraded. Seeking high quality instruments that have little risk for downgrades by the rating agencies--especially in these uncertain times--continued to be our primary purchasing focus. Given the unprecedented rapid easings by the Federal Reserve Board, we maintained the Fund's weighted average maturity somewhat longer than the benchmark position over most of the semi-annual period. In fact, the Fund's weighted average maturity was rarely less than 50 days, as we anticipated further interest rate cuts. This, too, became a challenge for several reasons. The short end of the money market yield curve was inverted (ie, yields were highest at the shortest end of the curve) for most of the reporting period. Also, the top-rated corporations were primarily issuing short-term securities when we were extending the Fund's maturity. Consequently, the supply of quality names was minimal. As of September 30, 2001, 41.28% of the Series was invested in commercial paper, 19.81% in corporate floating rate securities, 8.00% in euro certificates of deposit, 6.35% in euro time deposits, 4.77% in Yankee certificates of deposit and 19.79% in US agency securities, money market funds and cash or cash equivalents. LOOKING AHEAD On October 2, the Federal Reserve Board cut interest rates for the ninth time this year, bringing the targeted federal funds rate down by another 0.50% to 2.50%. The Federal Reserve Board stated that the terrorist attacks of September 11 'have significantly heightened uncertainty in an economy that was already weak. Business and household spending, as a consequence, are being further dampened.' The recent terrorist attacks and the response by the US military have created a great deal of uncertainty, not only in politics, but also in the domestic economy. The question is whether the combination of fiscal and monetary stimulus already in the pipeline--namely, 4.00% of cumulative interest rate cuts, a massive fiscal spending package and the tax refund checks of the third calendar quarter--will be able to return the US economy to a path of growth. In our view, the short-term outlook indicates that a change in the direction of the economy is not immediately ahead, but rather that economic conditions will stay soft at least through the end of 2001. Given this view, we also feel that the Federal Reserve Board will likely lower interest rates at least one more time this year. In the Fund, then, we intend to maintain a longer-than-benchmark weighted average maturity for the foreseeable future. We also intend to continue to seek high quality issuers in an effort to avoid potential downgrades by the rating agencies, as the economy may well be entering its first recession in a decade. We will also continue to maintain our conservative investment strategies and standards for the foreseeable future. We believe in the conservative approach that we apply to investing on behalf of the Fund and will continue to seek competitive yields for our shareholders. As always, we appreciate your continued support. Sincerely, /S/ DARLENE M. RASEL Darlene M. Rasel Portfolio Manager September 30, 2001 -------------------------------------------------------------------------------- 4 Cash Reserve Prime Shares -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS September 30, 2001 (Unaudited)
RATING -------------------- PAR PRIME SERIES S&P MOODY'S (000) MARKET VALUE ---------------------------------------------------------------------------------------------------------------- COMMERCIAL PAPER 1--41.28% AIRCRAFT & AEROSPACE--0.42% British Aerospace NA, 3.48% 10/31/01 ............................. A-1 P-1 $ 24,000 $ 23,930,400 ------------- ASSET BACKED--18.96% Asset Portfolio Funding Corp.: 3.77% 12/10/01 ............................. A-1+ P-1 30,000 29,780,083 3.40% 1/4/02 ............................... A-1+ P-1 12,599 12,485,959 Bavaria TRR Corp., 3.07% 10/11/01 ............................. A-1 P-1 50,000 49,957,361 Ciesco, LP, 3.30% 11/5/01 .............................. A-1+ P-1 50,000 49,839,583 Dorada Finance, Inc., 3.63% 1/22/02 .............................. A-1+ P-1 6,500 6,425,938 Greyhawk Funding LLC, 3.45% 10/29/01 ............................. A-1+ P-1 60,000 59,839,000 K2 (USA) LLC: 3.84% 11/29/01 ............................. A-1+ P-1 10,000 9,937,067 3.84% 11/30/01 ............................. A-1+ P-1 40,000 39,744,000 3.81% 1/10/02 .............................. A-1+ P-1 20,000 19,786,217 3.72% 2/27/02 .............................. A-1+ P-1 42,000 41,353,340 Monte Rosa Capital Corporation, 3.50% 10/11/01 ............................. A-1+ P-1 50,000 49,951,389 Moriarty LLC, 3.45% 1/24/02 .............................. A-1+ P-1 30,000 29,669,375 Pennine Funding LLC: 3.93% 10/22/01 ............................. A-1+ P-1 8,000 7,981,660 3.46% 11/13/01 ............................. A-1+ P-1 50,000 49,793,361 3.65% 1/14/02 .............................. A-1+ P-1 40,000 39,574,167 Perry Global Funding LLC, Series A, 3.43% 1/11/02 .............................. A-1+ P-1 29,555 29,267,775 Quincy Capital Corp.: 3.50% 10/15/01 ............................. A-1+ P-1 24,113 24,080,179 3.10% 10/17/01 ............................. A-1+ P-1 30,000 29,958,667 3.20% 11/9/01 .............................. A-1+ P-1 35,000 34,878,667 Receivables Capital Corp.: 3.45% 10/1/01 .............................. A-1+ P-1 75,000 75,000,000 3.45% 10/11/01 ............................. A-1+ P-1 50,000 49,952,083 Scaldis Capital LLC: 3.04% 10/17/01 ............................. A-1+ P-1 20,000 19,972,978 3.75% 12/7/01 .............................. A-1+ P-1 18,147 18,020,349 3.10% 12/17/01 ............................. A-1+ P-1 30,000 29,801,083 Sheffield Receivables Corp.: 2.75% 10/25/01 ............................. A-1+ P-1 125,000 124,770,833 3.92% 11/21/01 ............................. A-1+ P-1 25,000 24,861,167 3.72% 1/9/02 ............................... A-1+ P-1 60,620 59,993,593 Tulip Funding Corp., 2.73% 10/31/01 ............................. A-1+ P-1 49,821 49,707,657 ------------- 1,066,383,531 -------------
See Notes to Financial Statements. -------------------------------------------------------------------------------- 5 Cash Reserve Prime Shares -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS September 30, 2001 (Unaudited)
RATING -------------------- PAR PRIME SERIES S&P MOODY'S (000) MARKET VALUE ---------------------------------------------------------------------------------------------------------------- AUTOMOBILES & TRUCKS--4.03% Volkswagen America: 3.51% 10/9/01 .............................. A-1 P-1 $ 40,000 $ 39,968,800 3.00% 10/19/01 ............................. A-1 P-1 187,000 186,719,500 ------------- 226,688,300 ------------- BANKS--1.86% Fortis Bank, 3.44% 10/11/01 ............................. A-1+ P-1 45,000 44,957,000 Societe Generale NA, Inc., 3.37% 2/13/02 .............................. A-1+ P-1 15,000 14,810,438 Swedish National Housing Finance Corporation: 3.66% 10/12/01 ............................. A-1+ P-1 20,000 19,977,633 3.60% 10/26/01 ............................. A-1+ P-1 25,000 24,937,500 ------------- 104,682,571 ------------- ELECTRONICS--1.42% Hitachi America Capital, Ltd., 3.40% 10/2/01 .............................. A-1+ P-1 30,000 29,997,167 Panasonic Finance Inc., 2.95% 10/2/01 .............................. A-1+ P-1 50,000 49,995,903 ------------- 79,993,070 ------------- FINANCE: DIVERSIFIED--4.15% GE Capital International Funding, Inc.: 3.50% 10/11/01 ............................. A-1+ P-1 75,000 74,927,083 3.46% 10/19/01 ............................. A-1+ P-1 10,000 9,982,700 General Electric Capital Corp.: 3.80% 10/26/01 ............................. A-1+ P-1 35,000 34,907,639 3.35% 3/5/02 ............................... A-1+ P-1 40,000 39,423,055 General Electric Capital Services, Inc., 3.38% 3/4/02 ............................... A-1+ P-1 50,000 49,277,056 Paccar Financial Corp., 3.25% 10/5/01 .............................. A-1+ P-1 24,985 24,975,978 ------------- 233,493,511 ------------- FINANCIAL SERVICES--2.04% Goldman Sachs & Co.: 3.75% 11/29/01 ............................. A-1+ P-1 25,000 24,846,354 3.75% 11/30/01 ............................. A-1+ P-1 45,000 44,718,750 J.P. Morgan Chase & Co., 3.25% 10/17/01 ............................. A-1+ P-1 45,000 44,935,000 ------------- 114,500,104 ------------- INSURANCE, PROPERTY AND CASUALTY--0.44% Transamerica Finance Corp., 3.52% 10/5/01 .............................. A-1 P-1 25,000 24,990,222 -------------
See Notes to Financial Statements. -------------------------------------------------------------------------------- 6 Cash Reserve Prime Shares -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS September 30, 2001 (Unaudited)
RATING -------------------- PAR PRIME SERIES S&P MOODY'S (000) MARKET VALUE ---------------------------------------------------------------------------------------------------------------- MINING--1.78% Rio Tinto America, Inc.: 3.47% 10/18/01 ............................. A-1+ P-1 $50,000 $ 49,918,070 2.50% 10/22/01 ............................. A-1+ P-1 50,000 49,927,083 -------------- 99,845,153 -------------- PHARMACEUTICAL--2.18% Abbott Laboratories, 2.70% 10/26/01 ............................. A-1+ P-1 50,000 49,906,250 Merck & Co., 3.40% 10/1/01 .............................. A-1+ P-1 50,000 50,000,000 Schering Corp., 3.20% 10/5/01 .............................. A-1+ P-1 22,700 22,691,929 -------------- 122,598,179 -------------- PUBLISHING--1.90% Gannett Co., Inc., 3.45% 10/19/01 ............................. A-1 P-1 107,025 106,840,382 -------------- TELEPHONE--0.57% Verizon Network Funding Corp., 3.56% 10/23/01 ............................. A-1+ P-1 32,000 31,930,382 -------------- UTILITIES--1.53% National Rural Utilities CFC: 3.00% 10/26/01 ............................. A-1+ P-1 50,000 49,895,833 2.65% 11/7/01 .............................. A-1+ P-1 36,000 35,901,950 -------------- 85,797,783 -------------- TOTAL COMMERCIAL PAPER (Amortized Cost $2,321,673,588) .............................................................. 2,321,673,588 -------------- FLOATING RATE NOTES--19.81% Abbey National Treasury Services, PLC, 2.571% 10/25/01 ............................. A-1+ P-1 35,000 34,998,849 American Express Centurian Bank: 3.561% 12/4/01 .............................. A-1 P-1 40,000 40,000,000 3.471% 5/14/02 .............................. A-1 P-1 50,000 50,000,000 American Honda Finance Corp.: 3.531% 11/20/01 ............................. A-1 P-1 25,000 25,000,000 2.604% 1/24/02 .............................. A-1 P-1 40,000 39,998,647 2.681% 6/25/02 .............................. A-1 P-1 10,000 10,000,000 3.513% 8/27/02 .............................. A-1 P-1 15,000 15,000,000 Associates Corp. of North America: 3.629% 2/22/02 .............................. A-1+ P-1 50,000 50,029,456 3.68% 5/17/02 .............................. A-1+ P-1 25,000 25,027,238
See Notes to Financial Statements. -------------------------------------------------------------------------------- 7 Cash Reserve Prime Shares -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS September 30, 2001 (Unaudited)
RATING -------------------- PAR PRIME SERIES S&P MOODY'S (000) MARKET VALUE ---------------------------------------------------------------------------------------------------------------- Baltimore Gas & Electric Co., 4.07% 2/15/02 .............................. A-1 P-1 $10,000 $ 10,000,000 Bayerische Landesbank Girozentrale, 2.591% 10/25/01 ............................. A-1+ P-1 38,000 37,998,998 Boeing Capital Corp., 3.576% 2/7/02 ............................... A-1+ P-1 65,000 64,987,856 Caterpillar, Inc., 3.61% 12/10/01 ............................. A-1 P-1 10,507 10,509,689 Chase Manhattan Corporation: 3.82% 12/10/01 ............................. A-1+ P-1 20,000 20,016,196 3.916% 1/3/02 ............................... A-1+ P-1 24,766 24,772,170 2.673% 3/22/02 .............................. A-1+ P-1 15,500 15,510,699 Citigroup Inc., 3.471% 7/12/02 .............................. A-1+ P-1 60,000 60,000,000 Compass Securitization, LLC, 3.537% 1/9/02 ............................... A-1+ P-1 30,000 30,000,000 Credit Suisse First Boston, Inc.: 3.20% 3/20/02 .............................. A-1+ P-1 50,000 50,000,000 3.543% 5/7/02 ............................... A-1+ P-1 20,000 20,000,000 Federal National Mortgage Association Med Term Note, 3.065% 3/21/02 .............................. -- P-1 45,000 45,000,000 J.P. Morgan Chase & Co., 3.785% 1/28/02 .............................. A-1+ P-1 64,000 64,026,841 Merrill Lynch & Co., Inc., 3.245% 1/8/02 ............................... A-1+ P-1 25,000 25,000,000 Paccar Financial Corp., 3.80% 4/26/02 .............................. A-1+ P-1 40,000 40,034,704 Salomon Smith Barney Holdings, Inc.: 2.784% 1/24/02 .............................. A-1+ P-1 5,000 5,002,161 3.859% 1/24/02 .............................. A-1+ P-1 5,000 5,002,459 3.583% 3/4/02 ............................... A-1+ P-1 30,000 30,026,440 3.37% 3/18/02 .............................. A-1+ P-1 5,300 5,307,364 3.97% 4/15/02 .............................. A-1+ P-1 5,675 5,684,390 Toyota Motor Credit Corp.: 3.46% 12/7/01 .............................. A-1+ P-1 60,000 60,000,000 3.551% 4/2/02 ............................... A-1+ P-1 55,000 55,000,000 3.438% 5/15/02 .............................. A-1+ P-1 50,000 50,000,000 US Bank N.A., 3.626% 6/14/02 .............................. A-1 P-1 20,000 20,021,429 Verizon Global Funding Corp.: 2.915% 3/20/02 .............................. A-1 P-1 40,000 39,987,242 2.873% 3/21/02 .............................. A-1 P-1 30,000 30,017,217 -------------- TOTAL FLOATING RATE NOTES (Amortized Cost $1,113,960,045) .............................................................. 1,113,960,045 --------------
See Notes to Financial Statements. -------------------------------------------------------------------------------- 8 Cash Reserve Prime Shares -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS September 30, 2001 (Unaudited)
RATING -------------------- PAR PRIME SERIES S&P MOODY'S (000) MARKET VALUE ---------------------------------------------------------------------------------------------------------------- AGENCY DISCOUNT NOTES--4.69% Federal Farm Credit Bank Discount Notes, 4.54% 2/26/02 .............................. -- P-1 $10,000 $ 9,813,355 Federal Home Loan Bank: 4.18% 6/7/02 ............................... -- P-1 20,000 19,991,473 3.90% 7/3/02 ............................... -- P-1 17,000 16,998,027 3.75% 7/23/02 .............................. -- P-1 10,000 9,990,105 Federal Home Loan Mortgage Corp.: 2.46% 11/2/01 .............................. A-1+ P-1 50,000 49,890,667 2.50% 11/28/01 ............................. A-1+ P-1 57,000 56,770,417 2.94% 12/7/01 .............................. A-1+ P-1 25,000 24,863,208 FMC Discount Note, 3.57% 1/25/02 .............................. -- P-1 26,006 25,707,682 Federal National Mortgage Association, 2.28% 12/14/01 ............................. -- P-1 50,000 49,765,667 -------------- TOTAL AGENCY DISCOUNT NOTES (Amortized Cost $263,790,601) ................................................................ 263,790,601 -------------- CERTIFICATES OF DEPOSIT--1.35% Citibank, N.A., 3.59% 11/2/01 .............................. A-1+ P-1 26,000 26,000,000 LaSalle National Bank, 3.15% 11/19/01 ............................. A-1+ P-1 50,000 50,000,000 -------------- TOTAL CERTIFICATES OF DEPOSIT (Amortized Cost $76,000,000) ................................................................. 76,000,000 -------------- YANKEE CERTIFICATES OF DEPOSIT--4.77% Bank of America N.A., 4.07% 11/7/01 .............................. A-1+ P-1 38,000 38,000,000 Bayerische Landesbank Girozentrale, 5.05% 2/26/02 .............................. A-1+ P-1 10,000 9,999,218 Dexia Bank Belgium, 4.26% 5/22/02 .............................. A-1+ P-1 20,000 20,000,621 Landesbank Baden Wurttemberg: 3.63% 12/31/01 ............................. A-1+ P-1 25,000 24,992,415 3.845% 1/3/02 ............................... A-1+ P-1 25,000 25,000,320 Natexis Banque Populaires: 3.55% 10/9/01 .............................. A-1 P-1 50,000 50,002,594 3.46% 11/1/01 .............................. A-1 P-1 25,000 25,000,000 Royal Bank of Scotland PLC, 4.28% 4/23/02 .............................. A-1+ P-1 25,000 24,998,642 UBS AG, 4.10% 5/20/02 .............................. A-1+ P-1 50,000 50,139,280 -------------- TOTAL YANKEE CERTIFICATES OF DEPOSIT (Amortized Cost $268,133,090) ................................................................ 268,133,090 --------------
See Notes to Financial Statements. -------------------------------------------------------------------------------- 9 Cash Reserve Prime Shares -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS September 30, 2001 (Unaudited)
RATING -------------------- PAR PRIME SERIES S&P MOODY'S (000) MARKET VALUE ---------------------------------------------------------------------------------------------------------------- EURODOLLAR CERTIFICATES OF DEPOSIT--8.00% Bank of Scotland, 3.63% 5/10/02 .............................. A-1 P-1 $40,000 $ 40,000,000 Barclays Bank PLC, 5.27% 10/30/01 ............................. A-1+ P-1 10,000 10,001,006 Credit Agricole Indosuez SA: 2.50% 12/24/01 ............................. A-1+ P-1 35,000 35,000,812 4.03% 6/13/02 .............................. A-1+ P-1 25,000 25,001,625 Dresdner Bank AG, 3.82% 12/10/01 ............................. A-1+ P-1 50,000 50,000,000 ING Bank N.V.: 3.74% 1/14/02 .............................. A-1+ P-1 15,000 15,000,000 3.70% 1/22/02 .............................. A-1+ P-1 35,000 35,000,000 3.615% 8/13/02 .............................. A-1+ P-1 30,000 30,000,000 Landesbank Hessen-Thuringen Girozentrale, 4.76% 4/22/02 .............................. A-1+ P-1 30,000 30,078,939 Norddeutsche Landesbank Girozentrale: 3.51% 10/17/01 ............................. A-1+ P-1 50,000 50,000,588 3.83% 12/10/01 ............................. A-1+ P-1 35,000 35,001,227 3.63% 1/28/02 .............................. A-1+ P-1 40,000 39,997,212 3.47% 3/7/02 ............................... A-1+ P-1 40,000 40,097,521 Svenska Handelsbanken, Inc., 3.75% 1/7/02 ............................... A-1 P-1 15,000 14,996,181 -------------- TOTAL EURODOLLAR CERTIFICATES OF DEPOSIT (Amortized Cost $450,175,111) ................................................................ 450,175,111 -------------- EURO TIME DEPOSITS-CAYMAN--6.35% Allied Irish Banks PLC: 3.96% 11/19/01 ............................. A-1 P-1 25,000 25,000,000 3.42% 3/4/02 ............................... A-1 P-1 40,000 40,000,000 Banque Bruxelles Lambert, 3.71% 1/14/02 .............................. A-1+ P-1 50,000 50,000,000 Bayerishe Hypo-und Vereinsbank AG, 4.145% 10/9/01 .............................. A-1+ P-1 27,000 27,000,000 Credit Agricole Indosuez S.A., 3.30% 10/1/01 .............................. A-1+ P-1 100,000 100,000,000 Landesbank Baden Wurttemberg: 4.05% 11/9/01 .............................. A-1+ P-1 30,000 30,000,000 3.65% 1/28/02 .............................. A-1+ P-1 50,000 50,000,000 3.45% 2/25/02 .............................. A-1+ P-1 35,000 35,000,000 -------------- TOTAL EURO TIME DEPOSITS-CAYMAN (Amortized Cost $357,000,000) ................................................................ 357,000,000 --------------
See Notes to Financial Statements. -------------------------------------------------------------------------------- 10 Cash Reserve Prime Shares -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS September 30, 2001 (Unaudited)
RATING -------------------- PAR PRIME SERIES S&P MOODY'S (000) MARKET VALUE ---------------------------------------------------------------------------------------------------------------- MEDIUM-TERM NOTES--0.32% International Lease Finance Corporation: 5.60% 1/15/02 .............................. A-1+ P-1 $ 8,000 $ 8,022,394 7.20% 4/17/02 .............................. A-1+ P-1 10,000 10,138,074 -------------- TOTAL MEDIUM-TERM NOTES (Amortized Cost $18,160,468) ................................................................. 18,160,468 -------------- FEDERAL FARM CREDIT--0.36% Federal Farm Credit Bank, 5.25% 5/1/02 ............................... -- P-1 20,000 20,113,600 -------------- TOTAL FEDERAL FARM CREDIT (Amortized Cost $20,113,600) ................................................................. 20,113,600 -------------- FEDERAL HOME LOAN MORTGAGE COMPANY--0.90% Federal Home Loan Bank Board: 5.125% 2/26/02 .............................. -- -- 30,000 30,161,120 7.25% 5/15/02 .............................. -- -- 20,000 20,403,011 -------------- TOTAL FEDERAL HOME LOAN MORTGAGE COMPANY (Amortized Cost $50,564,131) ................................................................. 50,564,131 -------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION--0.27% Federal National Mortgage Association, 4.03% 6/28/02 .............................. -- P-1 15,000 15,000,000 -------------- TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (Amortized Cost $15,000,000) ................................................................. 15,000,000 -------------- MONEY MARKET FUNDS--9.26% Dreyfus Cash Management ........................... -- -- 25,000 25,000,000 J.P. Morgan Institutional Prime Fund .............. -- -- 25,000 25,000,000 Liquid Assets Portfolio (AIM) ..................... -- -- 175,960 175,960,000 Prime Cash Obligation Fund ........................ -- -- 75,000 75,000,000 Prime Obligations Fund ............................ -- -- 220,000 220,000,000 -------------- TOTAL MONEY MARKET FUNDS (Amortized Cost $520,960,000) ................................................................ 520,960,000 --------------
See Notes to Financial Statements. -------------------------------------------------------------------------------- 11 Cash Reserve Prime Shares -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS September 30, 2001 (Unaudited)
RATING -------------------- PAR PRIME SERIES S&P MOODY'S (000) MARKET VALUE ---------------------------------------------------------------------------------------------------------------- FUNDING AGREEMENT--0.80% General Electric Capital Assurance Corp., 3.543% 9/3/02 ............................... A-1+ -- $45,000 $ 45,000,000 -------------- TOTAL FUNDING AGREEMENT (Amortized Cost $45,000,000) ................................................................. 45,000,000 -------------- REPURCHASE AGREEMENT--1.69% CHASE MANHATTAN TRI-PARTY, 3.32% Dated 9/28/01, principal and interest in the amount of $94,782,857 due 10/1/01, (collateralized by:FNCI's, with a par value of $95,406,082, coupon rate of 6.00% thru 6.50%, due date of 9/01/16, market value of $97,169,486). (Cost $94,757,000) ........................................................... 94,757,000 -------------- TOTAL REPURCHASE AGREEMENT (Amortized Cost $94,757,000) ................................................................. 94,757,000 -------------- TOTAL INVESTMENTS (Amortized Cost $5,615,287,634) ................................................ 99.85% $5,615,287,634 OTHER ASSETS IN EXCESS OF LIABILITIES ............................................. 0.15 8,557,647 ------ -------------- NET ASSETS ........................................................................ 100.00% $5,623,845,281 ====== ============== -------------------------------------------------------------------------------- 1 Most commercial paper is traded on a discount basis. In such cases, the interest rate shown represents the yield at time of purchase by the Fund. MOODY'S RATINGS: P-1 Commercial paper bearing this designation is of the best quality. S&P RATINGS: A-1 Commercial paper that has a strong degree of safety regarding timely payment. Those issues determined to possess very strong safety characteristics are denoted with a plus (+) sign. A detailed description of the above ratings can be found in the Fund's Statement of Additional Information.
See Notes to Financial Statements. -------------------------------------------------------------------------------- 12 Cash Reserve Prime Shares -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES (Unaudited) PRIME SERIES SEPTEMBER 30, 2001 ASSETS Investments, at amortized cost ......................... $5,615,287,634 Cash ................................................... 737,977 Receivable for capital shares sold ..................... 16,123 Interest receivable .................................... 16,946,987 Prepaid expenses and other ............................. 649,960 -------------- Total assets ............................................. 5,633,638,681 -------------- LIABILITIES Payable for capital shares redeemed .................... 841,838 Income dividend payable ................................ 4,096,564 Accounting fees payable ................................ 15,350 Advisory fees payable .................................. 1,179,896 Custody fees payable ................................... 330,451 Transfer agent fees payable ............................ 1,098,020 Accrued expenses and other ............................. 2,231,281 -------------- Total liabilities ........................................ 9,793,400 -------------- NET ASSETS ............................................... $5,623,845,281 -------------- -------------- COMPOSITION OF NET ASSETS Paid-in capital ........................................ $5,623,389,825 Undistributed net investment income .................... 118,726 Accumulated net realized gain on investment transactions 336,730 -------------- NET ASSETS ............................................... $5,623,845,281 ============== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE Deutsche Banc Alex. Brown Cash Reserve Prime Shares 1 . $ 1.00 ============== Deutsche Banc Alex. Brown Cash Reserve Prime Institutional Shares 2 ........................ $ 1.00 ============== Cash Reserve Prime Class A Shares 3 ................... $ 1.00 ============== Cash Reserve Prime Class B Shares 4 ................... $ 1.00 ============== Cash Reserve Prime Class C Shares 5 ................... $ 1.00 ============== Quality Cash Reserve Prime Shares 6 ................... $ 1.00 ============== -------------------------------------------------------------------------------- 1 Net asset value, offering and redemption price per share (based on net assets of $4,820,997,024 and 4,820,605,650 shares outstanding). 2 Net asset value, offering and redemption price per share (based on net assets of $742,375,793 and 742,320,385 shares outstanding). 3 Net asset value, offering and redemption price per share (based on net assets of $12,191,084 and 12,189,774 shares outstanding). 4 Net asset value, offering and redemption price per share (based on net assets of $14,391,965 and 14,391,132 shares outstanding). 5 Net asset value, offering and redemption price per share (based on net assets of $1,216,939 and 1,216,866 shares outstanding). 6 Net asset value, offering and redemption price per share (based on net assets of $32,672,476 and 32,663,300 shares outstanding). See Notes to Financial Statements. -------------------------------------------------------------------------------- 13 Cash Reserve Prime Shares -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS (Unaudited) PRIME SERIES FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2001 INVESTMENT INCOME Investment Income ................................... $132,144,284 ------------ EXPENSES Investment advisory fees ............................ 7,689,346 Distribution fees: Deutsche Banc Alex. Brown Cash Reserve Prime Shares 6,449,715 Cash Reserve Prime Class A Shares ................. 14,885 Cash Reserve Prime Class B Shares ................. 44,014 Cash Reserve Prime Class C Shares ................. 4,842 Quality Cash Reserve Prime Shares ................. 129,393 Transfer agent fees ................................. 2,317,011 Shareholder service fees: Deutsche Banc Alex. Brown Cash Reserve Prime Shares 1,531,807 Cash Reserve Prime Class B Shares ................. 14,671 Cash Reserve Prime Class C Shares ................. 1,614 Registration fees ................................... 429,603 Custodian fees ...................................... 275,141 Printing and shareholder reports .................... 201,983 Directors' fees ..................................... 166,942 Accounting fees ..................................... 95,678 Professional fees ................................... 32,948 Miscellaneous ....................................... 201,066 ------------ Total expenses ......................................... 19,600,659 ------------ NET INVESTMENT INCOME .................................. 112,543,625 NET REALIZED GAIN FROM INVESTMENT TRANSACTIONS ......... 263,504 ------------ NET INCREASE IN NET ASSETS FROM OPERATIONS ............. $112,807,129 ============ See Notes to Financial Statements. -------------------------------------------------------------------------------- 14 Cash Reserve Prime Shares -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS
PRIME SERIES FOR THE SIX FOR THE MONTHS ENDED YEAR ENDED SEPTEMBER 30, 2001 1 MARCH 31, 2001 ----------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM: OPERATIONS Net investment income ........................... $ 112,543,625 $ 364,872,769 Net realized gain from investment transactions .. 263,504 73,226 ---------------- ---------------- Net increase in net assets from operations ...... 112,807,129 364,945,995 ---------------- ---------------- DISTRIBUTIONS TO SHAREHOLDERS Net investment income: Deutsche Banc Alex. Brown Cash Reserve Prime Shares ....................... (93,688,678) (317,575,763) Deutsche Banc Alex. Brown Cash Reserve Prime Institutional Shares ......... (17,717,843) (43,000,080) Cash Reserve Prime Class A Shares ............. (221,911) (844,641) Cash Reserve Prime Class B Shares ............. (172,515) (280,056) Cash Reserve Prime Class C Shares ............. (19,336) (41,081) Quality Cash Reserve Prime Shares ............. (723,342) (3,131,157) ---------------- ---------------- Total distributions ................................ (112,543,625) (364,872,778) ---------------- ---------------- CAPITAL SHARE TRANSACTIONS (at net asset value of $1.00 per share) Proceeds from sales of shares ................... 18,292,097,729 49,691,006,111 Dividend reinvestments .......................... 108,731,307 340,652,084 Cost of shares redeemed ......................... (19,259,832,321) (50,054,007,599) ---------------- ---------------- Net decrease in net assets from capital share transactions ............... (859,003,285) (22,349,404) ---------------- ---------------- TOTAL DECREASE IN NET ASSETS ....................... (858,739,781) (22,276,187) NET ASSETS Beginning of period ............................. 6,482,585,062 6,504,861,249 ---------------- ---------------- End of period ................................... $ 5,623,845,281 $ 6,482,585,062 ================ ================ -------------------------------------------------------------------------------- 1 Unaudited.
See Notes to Financial Statements. -------------------------------------------------------------------------------- 15 Cash Reserve Prime Shares -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
CLASS A SHARES FOR THE SIX MONTHS ENDED SEPTEMBER 30, FOR THE YEARS ENDED MARCH 31, 2001 1 2001 2000 1999 1998 1997 ---------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE, BEGINNING OF PERIOD .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------- ------- ------- ------- ------- ------- INCOME FROM INVESTMENT OPERATIONS Net investment income ............ 0.0186 0.0579 0.0483 0.0474 0.0494 0.0478 DISTRIBUTIONS TO SHAREHOLDERS Net investment income ............ (0.0186) (0.0579) (0.0483) (0.0474) (0.0494) (0.0478) ------- ------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD ...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======= ======= ======= ======= ======= ======= TOTAL INVESTMENT RETURN ............. 1.86% 5.95% 4.94% 4.85% 5.05% 4.88% SUPPLEMENTAL DATA AND RATIOS: Net assets, end of period (000s omitted) ................. $12,191 $11,882 $16,214 $13,028 $7,737 $6,522 Ratios to average net assets: Net investment income .......... 3.72%2 5.73% 4.89% 4.67% 4.94% 4.78% Expenses ....................... 0.62%2 0.61% 0.63% 0.63% 0.67% 0.63% -------------------------------------------------------------------------------- 1 Unaudited. 2 Annualized.
See Notes to Financial Statements. -------------------------------------------------------------------------------- 16 Cash Reserve Prime Shares -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
CLASS B SHARES FOR THE SIX MONTHS ENDED SEPTEMBER 30, FOR THE YEARS ENDED MARCH 31, 2001 1 2001 2000 1999 1998 1997 ---------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE, BEGINNING OF PERIOD ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------- ------- ------- ------- ------- ------- INCOME FROM INVESTMENT OPERATIONS Net investment income ............. 0.0147 0.0505 0.0406 0.0400 0.0418 0.0414 DISTRIBUTIONS TO SHAREHOLDERS Net investments income ............ (0.0147) (0.0505) (0.0406) (0.0400) (0.0418) (0.0414) ------- ------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======= ======= ======= ======= ======= ======= TOTAL INVESTMENT RETURN .............. 1.48% 5.17% 4.14% 4.07% 4.27% 4.22% SUPPLEMENTAL DATA AND RATIOS: Net assets, end of period (000s omitted) .................. $14,392 $11,975 $2,980 $2,356 $184 $227 Ratios to average net assets: Net investment income ........... 2.94%2 5.00% 4.14% 3.92% 4.18% 4.14% Expenses ........................ 1.37%2 1.39% 1.38% 1.37% 1.42% 1.38% -------------------------------------------------------------------------------- 1 Unaudited. 2 Annualized.
See Notes to Financial Statements. -------------------------------------------------------------------------------- 17 Cash Reserve Prime Shares -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
CLASS C SHARES FOR THE SIX FOR THE FOR THE PERIOD MONTHS ENDED YEAR ENDED JANUARY 18, 2000 2 SEPTEMBER 30, MARCH 31, THROUGH MARCH 31, 2001 1 2001 2000 ---------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE, BEGINNING OF PERIOD .................. $ 1.00 $ 1.00 $ 1.00 -------- -------- ------- INCOME FROM INVESTMENT OPERATIONS Net investment income .............................. 0.0147 0.0515 0.0115 DISTRIBUTIONS TO SHAREHOLDERS Net investment income .............................. (0.0147) (0.0515) (0.0115) -------- -------- ------- NET ASSET VALUE, END OF PERIOD ........................ $ 1.00 $ 1.00 $ 1.00 ======== ======== ======= TOTAL INVESTMENT RETURN ............................... 1.48% 5.28% 1.15% SUPPLEMENTAL DATA AND RATIOS: Net assets, end of period (000s omitted) ........... $1,217 $1,592 $779 Ratios to average net assets: Net investment income ............................ 3.00%3 5.07% 6.00%3 Expenses ......................................... 1.37%3 1.34% 0.31%3 -------------------------------------------------------------------------------- 1 Unaudited. 2 Commencement of operations. 3 Annualized.
See Notes to Financial Statements. -------------------------------------------------------------------------------- 18 Cash Reserve Prime Shares -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1--ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Deutsche Banc Alex. Brown Cash Reserve Fund, Inc. (the 'Fund') began operations August 11, 1981. The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. Its objective is to seek as high a level of current income as is consistent with preservation of capital and liquidity by investing in high quality short-term money market instruments. The Fund consists of three portfolios: the Prime Series, the Treasury Series and the Tax-Free Series. The Prime Series consists of six classes: Deutsche Banc Alex. Brown Cash Reserve Prime Shares ('Prime Shares'), Cash Reserve Prime Class A Shares, (formerly 'Flag Investors Cash Reserve Prime Class A Shares'), Cash Reserve Prime Class B Shares, (formerly 'Flag Investors Cash Reserve Prime Class B Shares'), Cash Reserve Prime Class C Shares, (formerly 'Flag Investors Cash Reserve Prime Class C Shares'), Quality Cash Reserve Prime Shares ('Quality Cash Shares') and Deutsche Banc Alex. Brown Cash Reserve Prime Institutional Shares ('Prime Institutional Shares'). Shareholders can vote only on issues that affect the share classes they own. These financial statements present the Prime Series. A. VALUATION OF SECURITIES Each Portfolio has a weighted average maturity of 90 days or less. The Fund values portfolio securities on the basis of amortized cost, which is in accordance with Rule 2a-7 of the Investment Company Act of 1940, which approximates market value. Using this method, the Fund initially values a security at its purchased cost. The Fund then values the investment at amortized cost assuming a constant amortization to maturity of any discount or premium. B. REPURCHASE AGREEMENTS The Prime Series may enter into tri-party repurchase agreements with broker-dealers and domestic banks. A repurchase agreement is a short-term investment in which the Fund buys a debt security that the broker agrees to repurchase at a set time and price. The third party, which is the broker's custodial bank, holds the collateral in a separate account until the repurchase agreement matures. The agreement ensures that the collateral's market value, including any accrued interest, is sufficient if the broker defaults. The Fund's access to the collateral may be delayed or limited if the broker defaults and the value of the collateral declines or if the broker enters into an insolvency proceeding. C. FEDERAL INCOME TAXES It is the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and distribute all of its taxable income to shareholders. Therefore, no federal income tax provision is required. Each portfolio is treated as a separate entity for Federal Income tax purposes. D. SECURITIES TRANSACTIONS, INVESTMENT INCOME AND DISTRIBUTIONS The Fund uses the trade date to account for securities transactions and the specific identification method for financial reporting and income tax purposes to determine the gain or loss on investments sold or redeemed. Interest income is recorded on an accrual basis and includes the amortization of premiums and accretion of discounts. Dividends to shareholders are declared daily. Dividend distributions or reinvestments are made monthly. E. EXPENSES Operating expenses for each share class or series are recorded on an accrual basis, and are charged to that class' or series' operations. If a Fund expense cannot be directly attributed to a share class or series, the expense is prorated among the classes or series that the expense affects and is based on the classes' or series' relative net assets. F. ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ from those estimates. -------------------------------------------------------------------------------- 19 Cash Reserve Prime Shares -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 2--FEES AND TRANSACTIONS WITH AFFILIATES AND OTHER FEES Investment Company Capital Corp. ('ICCC'), an indirect wholly-owned subsidiary of Deutsche Bank AG, is the investment advisor to each series. Under the terms of the investment advisory agreement, the Fund pays ICCC a fee, calculated daily and paid monthly, at the following annual rates based upon the Fund's aggregate average daily net assets: 0.30% of the first $500 million, 0.26% of the next $500 million, 0.25% of the next $500 million, 0.24% of the next $1 billion, 0.23% of the next $1 billion and 0.22% of the amount over $3.5 billion. The Prime Series pays an additional fee that is calculated daily and paid monthly at the annual rate of 0.02% of its average daily net assets. ICCC may voluntarily waive a portion of its advisory fees for the Prime Series to preserve or enhance performance. No fees were waived for the period ended September 30, 2001. ICCC also provides accounting services to the Fund. As compensation for these services, the Prime Series pays ICCC an annual fee that is calculated daily and paid monthly from its average daily net assets. ICCC also provides transfer agency services to the Fund. As compensation for its transfer agent services, the Prime Series pays ICCC a per account fee that is calculated and paid monthly. ICC Distributors, Inc. ('ICC Distributors'), a non-affiliated entity, provides distribution services to the Fund. As compensation for these services, the Prime Shares and the Cash Reserve Prime Class A Shares each pay ICC Distributors an annual fee equal to 0.25% of average daily net assets. The Quality Cash Shares, Cash Reserve Prime Class B Shares and Cash Reserve Prime Class C Shares also pay ICC Distributors an annual fee for distribution services. This fee is equal to 0.60% of the Quality Cash Shares' aggregate average daily net assets and 0.75% of the Class B and Class C Shares' average daily net assets. Class B and Class C Shares are also subject to a 0.25% shareholder servicing fee. No distribution fees were charged to the Prime Institutional Shares. The Shareholder Service Plan (the 'Plan') for the Deutsche Banc Alex. Brown Cash Reserve Shares of the Prime Series of the Fund ('Shares') provides compensation to third parties who provide shareholder services to clients, who from time to time beneficially own shares. In consideration of these services provided by any Shareholder Servicing Agent, the Fund pays the distributor an annual fee, calculated daily and paid monthly, equal to 0.07% of the Shares' average daily net assets. Prior to July 5, 2001, the fee was 0.05%. The Board of Directors of the Fund approved changing the fee at a Board meeting held on June 26, 2001. The Fund participates along with other former Flag Investors Funds in a retirement plan (the Plan) for eligible Directors. Effective February 12, 2001, the Board of Directors of the Fund, as well as each fund participating in the Plan, voted to amend the Plan effective December 31, 2000.The amendments provided that no further benefits would accrue to any current or future Directors and included a one-time payment of benefits accrued under the Plan to Directors, as calculated based on certain actuarial assumptions. At each Director's election, this one-time payment could be transferred into the Director's Deferred Compensation Plan or be paid to them in a lump sum cash distribution. Two retired directors will continue to receive benefits under the provisions of the Plan. The actuarially computed pension expense allocated to the Fund for the period ended September 30, 2001 was $192,015 and the accrued liability was $87,740. -------------------------------------------------------------------------------- 20 Cash Reserve Prime Shares -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 3--CAPITAL SHARE TRANSACTIONS The Fund is authorized to issue up to 20.81 billion shares of $.001 par value capital stock (12.66 billion Prime Series, 3.55 billion Treasury Series, 4.25 billion Tax-Free Series and 350 million undesignated). Transactions in capital shares of the Prime Series were as follows (at net asset value of $1.00 per share): For the For the Six Months Ended Year Ended September 30, 2001 1 March 31, 2001 -------------------- -------------- Prime Series: Sold: Prime Shares ............... 11,430,673,130 34,781,774,664 Cash Reserve Prime Class A Shares ........... 45,220,009 369,574,242 Cash Reserve Prime Class B Shares ........... 6,666,824 21,570,678 Cash Reserve Prime Class C Shares ........... 435,401 3,611,704 Prime Institutional Shares . 6,740,514,214 14,248,970,131 Quality Cash Shares ........ 68,588,151 265,504,692 Reinvested: Prime Shares ............... 91,509,666 300,567,137 Cash Reserve Prime Class A Shares ........... 165,891 538,430 Cash Reserve Prime Class B Shares ........... 154,312 238,869 Cash Reserve Prime Class C Shares ........... 15,865 29,796 Prime Institutional Shares . 16,184,659 36,273,237 Quality Cash Shares ........ 700,914 3,004,615 Redeemed: Prime Shares ............... (12,437,193,402) (35,119,236,863) Cash Reserve Prime Class A Shares ........... (45,076,945) (374,445,652) Cash Reserve Prime Class B Shares ........... (4,404,954) (12,814,093) Cash Reserve Prime Class C Shares ........... (826,402) (2,828,014) Prime Institutional Shares . (6,685,895,997) (14,251,483,991) Quality Cash Shares ........ (86,434,621) (293,198,986) --------------- --------------- Net decrease ............... (859,003,285) (22,349,404) =============== =============== -------------------------------------------------------------------------------- 1 Unaudited. -------------------------------------------------------------------------------- 21 [THIS PAGE INTENTIONALLY LEFT BLANK] For information on how to invest, shareholder account information and current price and yield information, please contact your relationship manager or write to: DEUTSCHE ASSET MANAGEMENT SERVICE CENTER PO BOX 219210 KANSAS CITY, MO 64121-9210 or call toll-free: 1-800-730-1313 This report must be preceded or accompanied by a current prospectus for the Fund. Deutsche Asset Management is the marketing name in the US for the asset management activities of Deutsche Bank AG, Deutsche Fund Management, Inc., Bankers Trust Company, Deutsche Banc Alex. Brown Inc., Deutsche Asset Management, Inc., and Deutsche Asset Management Investment Services Limited. Cash Reserve Prime Shares Class A Shares CUSIP #251521209 Class B Shares CUSIP #251521308 Class C Shares CUSIP #251521100 BDCASHSA (9/01) Printed 11/01 Distributed by: ICC Distributors, Inc.