-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, I7bbDoCEWNozcCv1MyVG3QQwFYfvWgNr//gm3f/OuRK7Sel+jqQzd8dNKWPj/Z5O 7zluxzzhUDpTGae0rr+pXw== 0000935069-02-000548.txt : 20020531 0000935069-02-000548.hdr.sgml : 20020531 20020530183325 ACCESSION NUMBER: 0000935069-02-000548 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020331 FILED AS OF DATE: 20020531 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DEUTSCHE BANC ALEX BROWN CASH RESERVE FUND INC CENTRAL INDEX KEY: 0000353447 IRS NUMBER: 621223991 STATE OF INCORPORATION: MD FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03196 FILM NUMBER: 02666813 BUSINESS ADDRESS: STREET 1: ONE SOUTH STREET CITY: BALTIMORE STATE: MD ZIP: 21202 BUSINESS PHONE: 4108953761 MAIL ADDRESS: STREET 1: ONE SOUTH ST CITY: BALTIMORE STATE: MD ZIP: 21202 FORMER COMPANY: FORMER CONFORMED NAME: BROWN ALEX CASH RESERVE FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: BT ALEX BROWN CASH RESERVE FUND INC DATE OF NAME CHANGE: 19970827 N-30D 1 dbab.txt DEUTSCHE ALEX BROWN ANNUAL DEUTSCHE BANK ALEX.BROWN DEUTSCHE BANK ALEX.BROWN CASH RESERVE FUND Prime Series Treasury Series Tax-Free Series ANNUAL REPORT March 31, 2002 DEUTSCHE BANK [LOGO OMITTED] Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- TABLE OF CONTENTS LETTER TO SHAREHOLDERS .................................... 3 DEUTSCHE BANK ALEX. BROWN CASH RESERVE FUND Schedule of Investments ................................ 7 Statements of Assets and Liabilities ................... 28 Statements of Operations ............................... 30 Statements of Changes in Net Assets .................... 32 Financial Highlights ................................... 34 Notes to Financial Statements .......................... 46 Report of Independent Accountants ...................... 50 Tax Information ........................................ 50 FUND DIRECTORS ............................................ 51 - -------------------------------------------------------------------------------- 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 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- LETTER TO SHAREHOLDERS We are pleased to report on the progress of your Fund for the twelve months ended March 31, 2002. At the end of the period, the Fund's net assets totaled $7,249,753,395. The distribution of the Fund's assets among its three series is illustrated in the following pie chart. - -------------------------------------------------------------------------------- PORTFOLIO DIVERSIFICATION (Net Assets as of 3/31/02) - -------------------------------------------------------------------------------- [PIE CHART OMITTED] Tax-Free Series $1.17 billion Treasury Series $945.6 million Prime Series $5.13 billion MARKET ACTIVITY THE FEDERAL RESERVE BOARD EASED INTEREST RATES EIGHT TIMES OVER THE COURSE OF THE FISCAL YEAR, CAUSING MONEY MARKET YIELDS TO DECLINE DRAMATICALLY. o These interest rate cuts, in combination with three more during the first calendar quarter of 2001, totaled 4.75%, causing the yield curve to steepen sharply. o This campaign of easing monetary policy, particularly in the second half of 2001, was the most concentrated effort to rejuvenate the economy in the central bank's history. o In explaining the rationale for its interest rate cuts, the Federal Reserve Board consistently cited falling corporate profits, declining business capital investment, weak consumer confidence in the US and slower economic growth abroad. THE MONEY MARKETS WERE PARTICULARLY FOCUSED ON THE FEDERAL RESERVE BOARD'S RESPONSE TO THE UNITED STATES ECONOMY'S PROTRACTED SLOWDOWN. o Employment, production and business spending remained weak. Consumer confidence dipped to new lows, as layoffs and related fears over job security began to surge. o The tragic events of September 11 only heightened the degree of economic uncertainty. o The Federal Reserve Board's already aggressive pace of interest rate cuts was stepped up in the aftermath of the attacks, as it began flooding the financial markets with liquidity. Its objective was to stabilize consumer and business confidence. o Economic data released during the first quarter of 2002 turned a little more positive and pointed to signs of a bottoming in the economy. It became clear by February 2002 that no more interest rate cuts would likely be forthcoming from the Federal Reserve Board during this cycle. In fact, in March, the Federal Reserve Board shifted from an easing to a neutral bias, citing a slow economic recovery in progress. The money markets began pricing in potential interest rate increases by mid-year 2002. TWO NOTABLE EVENTS CAPTURED THE MONEY MARKETS' ATTENTION DURING THE FISCAL YEAR. o The failure of Enron represented the largest corporate bankruptcy ever recorded. The full ramifications of this event on the money markets remain unclear, as the company was a major player in the credit markets. A great number of banks and insurance companies had exposure to Enron at the time of its failure, further extending the impact of its bankruptcy. o Also, turmoil in Argentina led to a default on its debt, devaluation of its currency and a succession of five presidents in a two-week period at the end of December 2001. The fallout from this debacle was felt throughout the emerging markets, supporting a flight-to-quality toward the US money markets. TO A LESS DRAMATIC DEGREE, THE MUNICIPAL MARKETS FOLLOWED A SIMILAR TREND AS THEIR TAXABLE COUNTERPARTS, WITH YIELDS DECLINING AS ECONOMIC GROWTH SLOWED AND THE FEDERAL RESERVE BOARD MAINTAINED AN AGGRESSIVE EASING MODE. o Municipal credit quality remained solid across most tax-exempt sectors during the annual period, even as the pace of US economic growth remained slow. Most municipalities have benefited from the strong growth of the past few years, allowing them to reduce debt and build reserves, providing a degree of financial flexibility. Nonetheless, in the second half of 2001, the municipal market experienced several rating downgrades. Among these were the State of California and the State of Tennessee. - -------------------------------------------------------------------------------- 3 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- LETTER TO SHAREHOLDERS - -------------------------------------------------------------------------------- WEIGHTED AVERAGE MATURITY (as of 3/31/02) - -------------------------------------------------------------------------------- DEUTSCHE BANK ALEX. BROWN CASH RESERVE FUND PRIME SERIES 54 DAYS iMoneyNet First Tier Retail Money Funds Average 59 days - -------------------------------------------------------------------------------- DEUTSCHE BANK ALEX. BROWN CASH RESERVE FUND TREASURY SERIES 51 DAYS iMoneyNet Treasury Retail Money Funds Average 64 days - -------------------------------------------------------------------------------- DEUTSCHE BANK ALEX. BROWN CASH RESERVE FUND TAX-FREE SERIES 36 DAYS iMoneyNet National Retail Tax-Free Money Funds Average 34 days - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Source: iMoneyNet, Inc. 'Money Funds Report.' The Money Funds Averages are average maturities of all funds in their respective categories. - -------------------------------------------------------------------------------- 7 DAY CURRENT YIELD (as of 3/31/02) - -------------------------------------------------------------------------------- DEUTSCHE BANK ALEX. BROWN CASH RESERVE FUND PRIME SERIES(1) 1.37% iMoneyNet First Tier Retail Money Funds Average(2) 1.20% - ------------------------------------------------------------------------------- DEUTSCHE BANK ALEX. BROWN CASH RESERVE FUND TREASURY SERIES(1) 1.20%(3) iMoneyNet Treasury Retail Money Funds Average(2) 1.25% - -------------------------------------------------------------------------------- DEUTSCHE BANK ALEX. BROWN CASH RESERVE FUND TAX-FREE SERIES(1,4) 1.01% iMoneyNet National Retail Tax-Free Money Funds Average(2) 0.95% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 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 The investment advisor has contractually agreed to waive part of its fees until July 31, 2002. Without such fee waivers the 7-day current yield would have been 1.15%. 4 For certain investors a portion of the Fund's income may be subject to the federal alternative minimum tax. Distribution of the Fund's income may be subject to state and local taxes. o Among the states that issued new paper during the fiscal year were California ($5.7 billion) and Texas ($4 billion). Other municipal borrowers issued larger deals and some came back to the market after several years of surplus had temporarily reduced the need for borrowing. o The increased issuance of short-term notes did not result in significant upward pressure on one-year rates however, as this rise in supply was offset by both an increase in demand and the Federal Reserve Board's changes in monetary policy. o Largely reflecting equity market volatility and the perceived safe haven of money market securities, both taxable and tax-exempt money market assets increased over the year. o The yield on one-year municipal notes declined by 1.07% over the fiscal year, to end the period at 2.18% on March 31, 2002. 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) ratings of each Series. The Prime, Treasury and Tax-Free Series each maintained a 'AAAm' rating.(1) This rating is the highest that S&P awards to money market funds. - -------------------------------------------------------------------------------- 1 Ratings are subject to change and do not remove market risk. - -------------------------------------------------------------------------------- 4 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- LETTER TO SHAREHOLDERS PRIME SERIES Our strategy in this Series continued to be concentrated on investing in high quality issues. As of March 31, 2002, 62% of the Series was invested in securities rated A1+/P1 and 15% in securities rated A1/P1, by S&P and Moody's. The remaining 23% 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 maintained an aggressive weighted average maturity, generally of at least 50 days, for most of the annual period, as we anticipated lower interest rates throughout the fiscal year. At the same time, we concentrated our investments in high-quality issuers and Federal agency securities. As the US economic slowdown accelerated and equity markets continued to slide, the credit quality of many corporations deteriorated. Finding and purchasing high-quality issues with little downgrade risk became both a challenge and an increasingly more important consideration for money market fund managers. As of March 31, 2002, 36.59% of the Prime Series was invested in commercial paper, 18.04% in corporate floating rate securities, 7.99% in euro certificates of deposit, 4.78% in euro time deposits, 8.48% in Yankee certificates of deposit and 24.12% in US agency securities, money market funds and cash or cash equivalents. TREASURY SERIES Our strategy in the Treasury Series was to maintain an aggressive weighted average maturity. As the Federal Reserve Board was rapidly cutting interest rates, we focused on purchasing US Treasury bills and notes for the Series as well as non-affiliated US Treasury money funds to take advantage of the yields and additional liquidity provided by these funds. After the tragedies of September 11, we focused on extending the Series' weighted average maturity with the purchase of additional Treasury securities. We also successfully maintained enough liquidity in the Series in the event investors looked to us as a liquidity vehicle. In the second half of the fiscal year, we focused our attention on the intermittent signs of recovery in the US economy, seeking to determine whether we had reached the bottom of the Federal Reserve Board's monetary easing cycle. At the end of the annual period, approximately 98.38% of the portfolio was invested in short-term Treasury bills and 1.62% in short-term Treasury notes. TAX-FREE SERIES We kept the Tax-Free Series' weighted average maturity in the neutral to longer-than-benchmark range between 34 and 50 days. The Series' weighted average maturity started the fiscal year at 34 days and ended the fiscal year at 36 days. We actively adjusted the Series' relative maturity position during the annual period to prepare for seasonal events, such as tax time in April and the January and July reinvestment periods. Redemptions from tax-exempt money markets during the 2001 tax season totaled approximately 6%. In large part because of the Federal Reserve Board's easing of monetary policy, these par for the course redemptions from tax payments in 2001 caused only a brief increase in yields. July is usually a period of large inflows in tax-exempt money funds typically resulting in declines in yields across the entire spectrum of the short-term tax-exempt yield curve. In 2001, however, as yields on floating rate notes declined, the one-year index actually rose, presenting us with a buying opportunity. In August, the Series' weighted average maturity was shortened in anticipation of the sale of one-year Texas tax and revenue anticipation notes. The Series was able to participate in this sale, making purchases at attractive yield levels. In September, the Series' weighted average maturity was allowed to drift shorter once again, as floating rate notes became attractive at month end. During the fourth calendar quarter, as a result of increased cash flow into money market funds, a lack of new issue supply and the Federal Reserve Board's easing posture, tax-exempt yields rallied. In March 2002, the short end of the tax-exempt money market reacted negatively to the Federal Reserve Board's shift to a neutral bias and began pricing in tighter monetary policy by mid-year. One-year municipal rates increased. Demand for variable rate demand notes rose as investors prepared once again for typical tax season outflows and shifted to a more defensive position in anticipation of higher short-term interest rates. - -------------------------------------------------------------------------------- 5 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- LETTER TO SHAREHOLDERS At the end of the semi-annual period, 60.54% of the Series was invested in municipal variable rate demand notes, 15.44% in municipal commercial paper and 24.02% in municipal fixed rate notes and bonds. LOOKING AHEAD We are cautiously optimistic about the outlook for the US economy. A great deal of monetary and fiscal stimulus is already in the pipeline, and there are emerging signs of recovery in consumer confidence, initial jobless claims, housing starts and durable goods (example: transportation). The Federal Reserve Board has signaled an end to its very aggressive monetary stimulus, and we believe we are likely at the start of the recovery stage in the US economy. In light of this, we intend to maintain a neutral stance in the Prime Series and Treasury Series. We intend to add high-quality floating-rate securities to the Prime Series while we monitor the future direction of interest rates. We also plan to continue to seek high-quality issuers in an effort to avoid potential downgrades as the economy remains sluggish. While we anticipate higher short-term interest rates as the year progresses, we also believe that Federal Reserve Board Chairman Greenspan will likely be forced to keep interest rates low for a relatively long period of time to prevent any chance of a double-dip recession. When the economic recovery accelerates, we anticipate some further steepening in the US Treasury yield curve. We thus intend to carefully monitor economic events to determine when it may be appropriate to change the duration of the Treasury Series. In the Tax-Free Series, we intend to maintain a shorter-than-benchmark weighted average maturity position. We will also continue to adjust the weighted average maturity in anticipation of seasonal factors. We will also continue to focus on the highest quality investments while still seeking competitive yields. In each of our Series, we will continue to concentrate the portfolios in very high quality credits and maintain our conservative investment strategies and standards for the foreseeable future. We continue to believe in the conservative approach that we apply to investing on behalf of the Series and will continue to seek competitive yields for our shareholders. As always, we appreciate your continued support. Sincerely, /S/SIGNATURE /S/SIGNATURE Darlene M. Rasel Portfolio Manager of the PRIME and TREASURY SERIES Steven Boyd Portfolio Manager of the TAX-FREE SERIES March 31, 2002 - -------------------------------------------------------------------------------- 6 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR PRIME SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- COMMERCIAL PAPER2--36.59% ASSET-BACKED--17.02% Asset Securitization Cooperative Corp. 1.84%, 5/10/02 .................................. A-1+ P-1 $50,000 $ 49,900,333 Bavaria TRR Corp. 1.95%, 4/12/02 .................................. A-1 P-1 30,000 29,982,125 Compass Securitization LLC 1.83%, 4/10/02 .................................. A-1+ P-1 35,690 35,673,724 Mont Blanc Capital Corp. 1.80%, 4/15/02 .................................. A-1+ P-1 30,000 29,979,000 1.87%, 5/13/02 .................................. A-1+ P-1 35,000 34,923,642 1.87%, 5/15/02 .................................. A-1+ P-1 70,000 69,840,011 Pennine Funding LLC 1.82%, 4/15/02 .................................. A-1+ P-1 39,185 39,157,266 1.75%, 4/23/02 .................................. A-1+ P-1 15,000 14,983,958 1.82%, 4/25/02 .................................. A-1+ P-1 45,000 44,945,400 1.83%, 5/21/02 .................................. A-1+ P-1 25,000 24,936,458 Perry Global Funding LLC, Series A 1.84%, 5/22/02 .................................. A-1+ P-1 31,996 31,912,597 Quincy Capital Corp. 1.82%, 4/17/02 .................................. A-1+ P-1 32,127 32,101,013 Receivables Capital Corp. 1.87%, 5/9/02 ................................... A-1+ P-1 40,327 40,234,345 Scaldis Capital LLC 1.82%, 4/15/02 .................................. A-1+ P-1 79,104 79,049,373 1.83%, 5/10/02 .................................. A-1+ P-1 44,659 44,570,463 1.89%, 5/24/02 .................................. A-1+ P-1 25,000 24,930,437 1.68%, 7/12/02 .................................. A-1+ P-1 35,000 34,833,400 2.30%, 9/20/02 .................................. A-1+ P-1 20,233 20,010,662 Sheffield Receivables Corp. 1.83%, 4/12/02 .................................. A-1+ P-1 50,000 49,972,042 1.84%, 4/22/02 .................................. A-1+ P-1 73,040 72,961,817 1.86%, 5/6/02 ................................... A-1+ P-1 30,270 30,215,262 1.92%, 6/17/02 .................................. A-1+ P-1 25,000 24,897,333 1.90%, 7/1/02 ................................... A-1+ P-1 13,000 12,937,564 ------------ 872,948,225 ------------ AUTOMOBILES & TRUCKS--2.24% Toyota Motor Credit Corp. 1.85%, 5/7/02 ................................... A-1+ P-1 45,000 44,916,750 1.85%, 5/10/02 .................................. A-1+ P-1 40,000 39,919,833 Volkswagen of America, Inc. 1.81%, 4/25/02 .................................. A-1 P-1 30,000 29,963,800 ------------ 114,800,383 ------------
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 7 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR PRIME SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- BANKS--4.18% Depfa Bank Europe PLC 1.84%, 5/6/02 ................................... A-1 P-1 $25,000 $ 24,955,278 Fortis Funding LLC 2.13%, 4/22/02 .................................. A-1+ P-1 20,000 19,975,150 HSBC USA, Inc. 1.80%, 4/15/02 .................................. A-1 P-1 45,000 44,968,500 JP MorganChase Bank 1.79%, 4/29/02 .................................. A-1+ P-1 50,000 49,930,389 1.93%, 7/30/02 .................................. A-1+ P-1 25,000 24,839,167 Swedish National Housing Finance Corp. 1.90%, 6/3/02 ................................... A-1+ P-1 25,000 24,916,875 1.95%, 6/4/02 ................................... A-1+ P-1 25,000 24,913,333 ------------ 214,498,692 ------------ BEVERAGES-SOFT DRINKS--0.58% Coca Cola Enterprises, Inc. 1.80%, 4/4/02 ................................... A-1 P-1 30,000 29,995,500 ------------ FINANCE-DIVERSIFIED--4.29% American General Finance Corp. 1.80%, 4/10/02 .................................. A-1 P-1 25,000 24,988,750 GE Capital International Funding, Inc. 1.80%, 4/8/02 ................................... A-1+ P-1 20,000 19,993,000 1.92%, 8/22/02 .................................. A-1+ P-1 10,000 9,923,733 1.93%, 8/28/02 .................................. A-1+ P-1 38,000 37,696,454 General Electric Capital Corp. 1.84%, 5/10/02 .................................. A-1+ P-1 25,000 24,950,167 2.08%, 5/20/02 .................................. A-1+ P-1 25,000 24,929,222 1.94%, 9/4/02 ................................... A-1+ P-1 18,000 17,848,680 International Lease Finance Corp. 1.81%, 4/15/02 .................................. A-1+ P-1 60,000 59,957,767 ------------ 220,287,773 ------------ FINANCIAL SERVICES--1.95% Morgan Stanley Dean Witter & Co. 1.82%, 4/12/02 .................................. A-1+ P-1 25,000 24,986,097 Salomon Smith Barney Holdings, Inc. 1.82%, 4/24/02 .................................. A-1 P-1 75,000 74,912,792 ------------ 99,898,889 ------------ FOODS--1.95% Nestle Capital Corp. 1.75%, 4/9/02 ................................... A-1+ P-1 50,000 49,980,555 1.83%, 6/3/02 ................................... A-1+ P-1 50,000 49,839,875 ------------ 99,820,430 ------------ INSURANCE--1.95% Irish Life & Permanent PLC 1.88%, 5/20/02 .................................. A-1 P-1 40,000 39,897,645 Prudential Funding LLC 1.80%, 4/5/02 ................................... A-1 P-1 35,000 34,993,000 1.81%, 4/22/02 .................................. A-1 P-1 25,000 24,973,604 ------------ 99,864,249 ------------
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 8 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR PRIME SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- TELEPHONE--2.43% SBC Communications, Inc. 2.08%, 4/9/02 ................................... A-1+ P-1 $ 40,000 $ 39,981,511 Verizon Global Funding Corp. 2.16%, 10/17/02 ................................. A-1 P-1 20,000 19,756,778 Verizon Network Funding Corp. 2.28%, 4/15/02 .................................. A-1+ P-1 30,000 29,973,400 2.21%, 4/25/02 .................................. A-1+ P-1 15,000 14,977,900 1.85%, 5/30/02 .................................. A-1+ P-1 20,000 19,939,361 ------------- 124,628,950 ------------- TOTAL COMMERCIAL PAPER (Amortized Cost $1,876,743,091) .............................................................. 1,876,743,091 ------------- FLOATING RATE NOTES--18.04% Abbey National PLC 1.819%, 3/31/03 ................................. A-1+ P-1 25,000 24,984,997 American Express Centurian Bank 1.87%, 5/14/02 .................................. A-1 P-1 50,000 50,000,000 American Honda Finance Corp. 1.92%, 6/25/02 .................................. A-1 P-1 10,000 10,000,000 1.901%, 8/27/02 ................................. A-1 P-1 15,000 15,000,000 Asset Securitization Cooperative Corp. 1.87%, 4/23/02 .................................. A-1+ P-1 30,000 30,000,000 1.879%, 5/28/02 ................................. A-1+ P-1 25,000 25,000,000 Associates Corp. of North America 2.03%, 5/17/02 .................................. A-1+ P-1 25,000 25,005,496 Bayerische Landesbank Girozentrale 1.80%, 3/25/03 .................................. A-1+ P-1 25,000 24,985,288 1.80%, 3/26/03 .................................. A-1+ P-1 25,000 24,985,247 Canadian Imperial Bank of Commerce 1.799%, 10/2/02 ................................. A-1+ P-1 50,000 49,986,137 Citigroup Inc. 1.87%, 7/12/02 .................................. A-1+ P-1 60,000 60,000,000 Credit Agricole Indosuez S.A. 1.815%, 3/25/03 ................................. A-1+ P-1 25,000 24,990,192 Credit Suisse First Boston 1.855%, 5/7/02 .................................. A-1+ P-1 20,000 20,000,000 General Electric Capital Corp. 1.92%, 11/21/02 ................................. A-1+ P-1 20,000 20,006,206 J.P. Morgan Chase & Co. 2.00%, 7/8/02 ................................... A-1+ P-1 20,000 20,008,237 Merck & Co., Inc. 1.86%, 10/25/02 ................................. A-1+ P-1 10,000 10,000,000 Merrill Lynch & Co., Inc. 1.84%, 4/3/02 ................................... A-1+ P-1 175,000 175,000,000 Paccar Financial Corp. 1.91%, 4/26/02 .................................. A-1+ P-1 40,000 40,004,191 Salomon Smith Barney Holdings, Inc. 2.027%, 4/15/02 ................................. A-1 P-1 5,675 5,675,671
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 9 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR PRIME SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- Toyota Motor Credit Corp. 1.84%, 4/2/02 ................................... A-1+ P-1 $ 55,000 $ 55,000,000 1.85%, 5/15/02 .................................. A-1+ P-1 50,000 50,000,000 1.959%, 12/23/02 ................................ A-1+ P-1 50,000 50,000,000 Unilever N.V. 1.92%, 10/24/02 ................................. A-1 P-1 10,000 10,010,451 US Bank N.A. 2.025%, 6/14/02 ................................. A-1 P-1 20,000 20,006,194 Verizon Global Funding 1.93%, 11/4/02 .................................. A-1 P-1 15,000 15,008,870 1.88%, 2/19/03 .................................. A-1 P-1 45,000 44,988,016 Westdeutsche Landesbank Girozentrale 1.82%, 3/24/03 .................................. A-1+ P-1 25,000 24,987,699 ------------ TOTAL FLOATING RATE-NOTES (Amortized Cost $925,632,892) ................................................................. 925,632,892 ------------ AGENCY DISCOUNT NOTES--0.57% Federal Farm Credit Bank 5.25%, 5/1/02 ................................... -- -- 20,000 20,016,075 2.81%, 4/4/03 ................................... -- -- 9,438 9,435,051 ------------ TOTAL AGENCY DISCOUNT NOTES (Amortized Cost $29,451,126) .................................................................. 29,451,126 ------------ CERTIFICATES OF DEPOSIT-YANKEE--8.48% Abbey National PLC 1.95%, 8/5/02 ................................... A-1+ P-1 25,000 25,000,000 2.40%, 11/19/02 ................................. A-1+ P-1 25,000 25,000,000 2.59%, 3/31/03 .................................. A-1+ P-1 10,000 10,003,936 Canadian Imperial Bank of Commerce 1.69%, 7/16/02 .................................. A-1+ P-1 35,000 35,000,000 1.85%, 7/31/02 .................................. A-1+ P-1 75,000 75,000,000 Credit Argricole Indosuez S.A. 1.95%, 8/30/02 .................................. A-1+ P-1 30,000 30,000,000 Dexia Bank Belgium 4.26%, 5/22/02 .................................. A-1+ P-1 20,000 20,000,136 Natexis Banque Populaires 1.86%, 5/7/02 ................................... A-1 P-1 25,000 25,000,000 Norddeutsche Landesbank Girozentrale 2.17%, 11/18/02 ................................. A-1+ P-1 15,000 14,977,454 Rabobank Nederland N.V. 2.76%, 3/24/03 .................................. A-1+ P-1 20,000 19,953,812 Royal Bank of Scotland PLC 4.28%, 4/23/02 .................................. A-1 P-1 25,000 24,999,854 UBS AG 4.10%, 5/20/02 .................................. A-1+ P-1 50,000 50,029,544 1.94%, 8/5/02 ................................... A-1 P-1 35,000 35,000,000 Westdeutsche Landesbank Girozentrale 2.28%, 1/23/03 .................................. A-1+ P-1 25,000 25,000,000 2.27%, 1/27/03 .................................. A-1+ P-1 20,000 19,983,672 ------------ TOTAL CERTIFICATES OF DEPOSIT-YANKEE (Amortized Cost $434,948,408) ................................................................. 434,948,408 ------------
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 10 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR PRIME SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT-EURODOLLAR--7.99% Bank of Scotland 3.63%, 5/10/02 .................................. A-1+ P-1 $ 40,000 $ 40,000,000 BNP Paribas 1.89%, 7/8/02 ................................... A-1+ P-1 75,000 75,000,000 Credit Agricole Indosuez S.A. 4.03%, 6/13/02 .................................. A-1+ P-1 25,000 25,000,465 2.17%, 9/30/02 .................................. A-1+ P-1 35,000 34,998,252 Halifax PLC 2.27%, 4/18/02 .................................. A-1+ P-1 45,000 45,002,493 1.82%, 4/22/02 .................................. A-1+ P-1 25,000 25,000,000 ING Bank N.V. 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 30,008,166 Nordea Bank Finland PLC 1.91%, 8/1/02 ................................... A-1 P-1 20,000 20,000,496 Nordea North America, Inc. 1.76%, 7/22/02 .................................. A-1 P-1 35,000 35,001,079 Unicredito Italiano SPA 1.88%, 5/7/02 ................................... A-1 P-1 50,000 50,000,494 ------------ TOTAL CERTIFICATES OF DEPOSIT-EURODOLLAR (Amortized Cost $410,011,445) ................................................................. 410,011,445 ------------ EURO TIME DEPOSITS-CAYMAN--4.78% Allied Irish Banks PLC 2.188%, 5/28/02 ................................. A-1 P-1 25,000 25,000,000 Landesbank Baden Wurttemberg 2.31%, 4/17/02 .................................. A-1+ P-1 50,000 50,000,000 1.94%, 6/17/02 .................................. A-1+ P-1 70,000 70,000,000 Norddeutsche Landesbank Girozentrale 1.83%, 5/2/02 ................................... A-1+ P-1 50,000 50,000,000 2.33%, 9/30/02 .................................. A-1+ P-1 50,000 50,000,000 ------------ TOTAL EURO TIME DEPOSITS-CAYMAN (Amortized Cost $245,000,000) ................................................................. 245,000,000 ------------ MEDIUM-TERM NOTES--0.19% International Lease Finance Corp. 7.20%, 4/17/02 .................................. A-1+ P-1 10,000 10,011,158 ------------ TOTAL MEDIUM-TERM NOTES (Amortized Cost $10,011,157) .................................................................. 10,011,158 ------------ FEDERAL HOME LOAN MORTGAGE COMPANY--0.52% Federal Home Loan Mortgage Company 6.625%, 8/15/02 ................................. -- -- 15,000 15,260,286 2.45%, 1/16/03 .................................. -- -- 11,270 11,270,000 ------------ TOTAL FEDERAL HOME LOANMORTGAGE COMPANY (Amortized Cost $26,530,286) .................................................................. 26,530,286 ------------
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 11 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR PRIME SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- FEDERAL HOME LOAN MORTGAGE BANK--2.63% Federal Home Loan Bank 7.25%, 5/15/02 .................................. -- -- $ 20,000 $ 20,078,462 3.75%, 7/23/02 .................................. -- -- 10,000 9,996,210 6.75%, 8/15/02 .................................. -- -- 15,000 15,268,919 6.25%, 11/15/02 ................................. -- -- 12,000 12,281,286 5.125%, 1/13/03 ................................. -- -- 20,760 21,268,568 2.35%, 2/21/03 .................................. -- -- 20,000 19,988,836 2.50%, 2/21/03 .................................. -- -- 25,000 24,997,767 2.40%, 3/20/03 .................................. -- -- 10,820 10,815,590 ------------ TOTAL FEDERAL HOME LOAN MORTGAGE BANK (Amortized Cost $134,695,638) ................................................................. 134,695,638 ------------ FEDERAL NATIONAL MORTGAGE ASSOCIATION--1.26% Federal National Mortgage Association 1.75%, 5/8/02 ................................... -- -- 50,000 49,910,069 2.25%, 2/7/03 ................................... -- -- 15,000 15,000,000 ------------ TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (Amortized Cost $64,910,069) .................................................................. 64,910,069 ------------ MONEY MARKET FUNDS--5.88% Dreyfus Cash Management 1.83%, 4/1/02 ................................... -- -- 15,000 15,000,000 Federated Prime Cash Obligation Fund 1.83%, 4/1/02 ................................... -- -- 75,000 75,000,000 AIM Liquid Assets Portfolio 1.87%, 4/1/02 ................................... -- -- 211,718 211,718,000 ------------ TOTAL MONEY MARKET FUNDS (Amortized Cost $301,718,000) ................................................................. 301,718,000 ------------ US TREASURY OBLIGATIONS--0.73% US Treasury Bill 1.715%, 5/9/02 .................................. -- -- 25,000 24,954,743 US Treasury Note 5.75%, 10/31/02 ................................. -- -- 12,000 12,264,391 ------------ TOTAL US TREASURY OBLIGATIONS (Amortized Cost $37,219,134) .................................................................. 37,219,134 ------------ FUNDING AGREEMENTS--0.88% General Electric Capital Assurance Co. 1.991%, 9/3/02 .................................. A-1+ P-1 45,000 45,000,000 ------------ TOTAL FUNDING AGREEMENT (Amortized Cost $45,000,000) .................................................................. 45,000,000 ------------
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 12 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
PAR PRIME SERIES (000) MARKET VALUE - ---------------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--11.46% Tri Party Repurchase Agreement with J.P. Morgan Securities, Inc., dated 3/28/02, 1.92%, principal and interest in the amount of $200,031,562, due 4/1/02, (collateralized by Fannie Maes with a par value of $217,137,121, coupon rates from 6.00% to 7.50%, due from 8/1/16 thru 3/1/32, with a market value of $206,004,133) ...................................... $200,000 $200,000,000 Tri Party Repurchase Agreement with UBS Warburg, dated 3/28/02, 1.90%, principal and interest in the amount of $387,804,693, due 4/1/02, (collateralized by Fannie Maes and Resolution Funding Corp. Interest holdings with a par value of $549,713,000, coupon rates from 0.00% to 9.375%, due from 4/15/02 thru 10/15/29, with a market value of $395,500,552) 387,744 387,744,141 -------------- TOTAL REPURCHASE AGREEMENTS (Amortized Cost $587,744,141) ............................................... 587,744,141 -------------- TOTAL INVESTMENTS (Amortized Cost $5,129,615,387)3 ............................................ 100.00% $5,129,615,387 LIABILITIES IN EXCESS OF OTHER ASSETS .......................................... 0.00 (182,012) ------ -------------- NET ASSETS ..................................................................... 100.00% $5,129,433,375 ====== ==============
- -------------------------------------------------------------------------------- 1 Unaudited. 2 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. 3 Also aggregate cost for federal tax purposes. 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. - -------------------------------------------------------------------------------- 13 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
MATURITY PAR TREASURY SERIES DATE (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- US TREASURY BILLS(1)--98.43% 1.695% ................................................. 4/4/02 $54,275 $ 54,267,334 1.73% .................................................. 4/4/02 7,039 7,037,985 1.735% ................................................. 4/4/02 9,337 9,335,650 1.74% .................................................. 4/4/02 50,449 50,441,685 1.755% ................................................. 4/4/02 8,162 8,160,806 1.655% ................................................. 4/11/02 18,000 17,991,725 1.775% ................................................. 4/11/02 32,470 32,453,991 1.65% .................................................. 4/18/02 47,970 47,932,623 1.74% .................................................. 4/18/02 8,854 8,846,725 1.74% .................................................. 4/18/02 15,659 15,646,134 1.655% ................................................. 4/25/02 50,000 49,944,833 1.675% ................................................. 4/25/02 40,000 39,955,333 1.685% ................................................. 4/25/02 2,389 2,386,316 1.71% .................................................. 5/2/02 46,990 46,920,807 1.725% ................................................. 5/2/02 2,942 2,937,630 1.82% .................................................. 5/2/02 46,960 46,886,403 1.715% ................................................. 5/9/02 10,000 9,981,897 1.715% ................................................. 5/9/02 50,000 49,899,722 1.72% .................................................. 5/9/02 50,000 49,909,222 1.725% ................................................. 5/9/02 10,111 10,092,590 1.705% ................................................. 5/16/02 48,650 48,546,315 1.775% ................................................. 5/16/02 4,370 4,360,304 1.68% .................................................. 5/30/02 28,000 27,922,907 1.725% ................................................. 5/30/02 50,000 49,858,646 1.80% .................................................. 6/13/02 47,000 46,828,450 1.81% .................................................. 6/20/02 25,000 24,899,445 1.83% .................................................. 6/20/02 45,000 44,817,000 1.73% .................................................. 7/5/02 20,000 19,908,694 1.77% .................................................. 7/11/02 47,145 46,910,886 1.815% ................................................. 7/18/02 46,000 45,749,530 1.85% .................................................. 8/29/02 10,000 9,923,750 ------------ TOTAL US TREASURY BILLS (Amortized Cost $930,755,338) ................................................................. 930,755,338 ------------ US TREASURY NOTES--1.62% 5.75% .................................................. 10/31/02 15,000 15,312,012 ------------ TOTAL US TREASURY NOTES (Amortized Cost $15,312,012) .................................................................. 15,312,012 ------------ TOTAL INVESTMENTS (Amortized Cost $946,067,350)(2) ............................................. 100.05% $946,067,350 LIABILITIES IN EXCESS OF OTHER ASSETS ........................................... (0.05) (497,088) ------ ------------ NET ASSETS ...................................................................... 100.00% $945,570,262 ====== ============
- -------------------------------------------------------------------------------- 1 US Treasury Bills are traded on a discount basis. The interest rate shown represents the yield at the date of purchase. 2 Also aggregate cost for federal tax purposes. See Notes to Financial Statements. - -------------------------------------------------------------------------------- 14 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR TAX-FREE SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- ALABAMA--1.99% Alabama, Housing Finance Authority, Multi-family Housing, Refunding RB, Heatherbrooke Project C, (Guaranteed by FNMA), Variable Rate Weekly Demand Note(2) 1.45%, 6/15/26 .................................. A-1+ VMG-1 $ 9,900 $ 9,900,000 Alabama, Housing Finance Authority, Multi-family Housing, Refunding RB, Rime Village Hoover Project, (Guaranteed by FNMA), Variable Rate Weekly Demand Note(2) 1.45%, 6/15/26 .................................. A-1+ VMG-1 7,500 7,500,000 Jefferson County, Alabama, Sewer Revenue, Series A, RB, (FGIC Insured), Variable Rate Weekly Demand Note(2) 1.50%, 2/1/42 ................................... A-1+ VMG-1 6,000 6,000,000 ------------ 23,400,000 ------------ ARIZONA--2.65% Arizona State, Excise Tax Revenue, Maricopa County, Regal Area--B, RB, (AMBAC Insured) 6.00%, 7/1/02 ................................... AAA Aaa 2,000 2,016,119 Mesa, Arizona, Industrial Development Authority Revenue, Discovery Health System, Series B, (MBIA Insured), Variable Rate Weekly Demand Note(2) 1.51%, 1/1/29 ................................... A-1+ VMG-1 22,115 22,115,000 Phoenix, Arizona 1.65%, 5/17/02 .................................. A-1+ P-1 7,000 7,000,000 ------------ 31,131,119 ------------ COLORADO--2.00% Colorado, Housing & Finance Authority, Multi-family Housing, Refunding RB, Hunters Project E, (Guaranteed by FNMA), Variable Rate Weekly Demand Note(2) 1.45%, 10/15/16 ................................. A-1+ N-R 1,900 1,900,000 Colorado, Housing & Finance Authority, Multi-family Housing, Refunding RB, Loretto Project F, (Guaranteed by FNMA), Variable Rate Weekly Demand Note(2) 1.45%, 10/15/16 ................................. A-1+ VMG-1 8,800 8,800,000 Colorado, Housing & Finance Authority, Multi-family Housing, Refunding RB, St. Moritz Project H, (Guaranteed by FNMA), Variable Rate Weekly Demand Note(2) 1.45%, 10/15/16 ................................. A-1+ VMG-1 4,800 4,800,000 Colorado, Regional Transportation District 1.20%, 5/7/02 ................................... A-1+ P-1 8,000 8,000,000 ------------ 23,500,000 ------------ DISTRICT OF COLUMBIA--0.85% District of Columbia, GO, Series D, (FGIC Insured), Variable Rate Weekly Demand Note(2) 1.45%, 6/1/29 ................................... A-1+ VMG-1 10,000 10,000,000 ------------
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 15 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR TAX-FREE SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- FLORIDA--3.96% Florida State, Department Environmental Protection, Preservation Revenue, Florida Forever, RB, Series A, (MBIA Insured), 5.00%, 7/1/02 ................................... AAA Aaa $ 1,670 $ 1,679,592 Florida State, Municipal Power Agency Revenue, Stanton II Project, (AMBAC Insured), Variable Rate Weekly Demand Note(2) 1.44%, 10/1/27 .................................. A-1 VMG-1 8,350 8,350,000 Jacksonville, Florida, Capital Project, Series 2, (AMBAC Insured), Variable Rate Weekly Demand Note(2) 1.55%, 10/1/22 .................................. A-1+ VMG-1 15,000 15,000,000 Pinellas County, Florida, Health Facilities Authority, Refunding RB, Pooled Hospital Loan Program, (AMBAC Insured), (SPA: Suntrust Bank), Variable Rate Daily Demand Note(2) 1.45%, 12/1/15 .................................. A-1+ VMG-1 4,100 4,100,000 Sunshine State, Governmental Financing, RB, Community Florida Financing Revenue, (AMBAC Insured), (SPA: Dexia Credit Local), Variable Rate Weekly Demand Note(2) 1.50%, 7/1/16 ................................... A-1+ VMG-1 16,000 16,000,000 Tampa, Florida, Health Care Facilities Authority, RB, Lifelink Foundation Inc. Project J, (LOC: SunTrust Bank), Variable Rate Weekly Demand Note(2) 1.50%, 8/1/22 ................................... A-1+ VMG-1 1,400 1,400,000 ------------ 46,529,592 ------------ GEORGIA--15.34% Atlanta, GA, Water & Wastewater Revenue, Series B, Refunding RB, (FSA Insured), Variable Rate Weekly Demand Note(2) 1.55%, 11/1/38 .................................. A-1+ VMG-1 21,500 21,500,000 Atlanta, GA, Water & Wastewater Revenue, Series C, RB, (FSA Insured), Variable Rate Weekly Demand Note(2) 1.35%, 11/1/41 .................................. A-1+ VMG-1 2,200 2,200,000 Burke County, GA 1.25%, 4/5/02 ................................... A-1+ VMG-1 13,725 13,725,000 1.20%, 4/8/02 ................................... A-1+ VMG-1 2,000 2,000,000 1.20%, 4/17/02 .................................. A-1+ VMG-1 2,000 2,000,000 1.25%, 5/7/02 ................................... A-1+ P-1 6,400 6,400,000 Burke County, Georgia, Development Authority, Pollution Control Revenue, RB, Oglethorpe Power Corp., Series A, (AMBAC Insured), (SPA: Morgan Guaranty Trust), Variable Rate Daily Demand Note(2) 1.50%, 1/1/20 ................................... A-1+ Aa 5,000 5,000,000 Cobb County, Georgia, Housing Authority, RB, Post Mill Project, (Guaranteed by FNMA), Variable Rate Weekly Demand Note(2) 1.45%, 6/1/25 ................................... A-1+ VMG-1 9,380 9,380,000
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 16 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR TAX-FREE SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- Columbus County, Georgia, Housing Authority Revenue, RB, Columbus State University Foundation, Inc., (LOC: SunTrust Bank), Variable Rate Weekly Demand Note(2) 1.50%, 11/1/17 .................................. A-1+ VMG-1 $ 3,100 $ 3,100,000 De Kalb County, Georgia, Housing Authority, Multi-family Housing, RB, Post Ashford Project, (Guaranteed by FNMA), Variable Rate Weekly Demand Note(2) 1.45%, 6/1/25 ................................... A-1+ VMG-1 8,895 8,895,000 De Kalb County, Georgia, Housing Authority, Multi-family Housing, Refunding RB, Camden Brook Project, (Guaranteed by FNMA), Variable Rate Weekly Demand Note(2) 1.50%, 6/15/25 .................................. A-1+ VMG-1 5,700 5,700,000 De Kalb County, Georgia, Housing Authority, Multi-family Housing, Refunding RB, Clairmont Crest Project, (Guaranteed by FNMA), Variable Rate Weekly Demand Note(2) 1.50%, 6/15/25 .................................. A-1+ VMG-1 4,500 4,500,000 FultonCounty, Georgia, Hospital Authority, RB, Piedmont Hospital Project, (LOC: SunTrust Bank), Variable Rate Weekly Demand Note(2) 1.45%, 4/1/24 ................................... A-1+ VMG-1 2,900 2,900,000 Georgia State 1.25%, 4/11/02 .................................. A-1+ VMG-1 7,000 7,000,000 Georgia State, GO, Series A 6.25%, 4/1/02 ................................... AAA Aaa 7,000 7,000,000 Georgia State, Series D, GO 6.50%, 8/1/02 ................................... AAA Aaa 3,000 3,051,282 Macon-Bibb County, Georgia, Hospital Authority Revenue, RB, Medical Center of Central Georgia, (LOC: SunTrust Bank), Variable Rate Weekly Demand Note(2) 1.50%, 8/1/18 ................................... A-1+ Aaa 2,700 2,700,000 Macon-Bibb County, Georgia, RB, Hospital Authority Revenue, RB, Medical Center of Central Georgia, (LOC: SunTrust Bank), Variable Rate Weekly Demand Note(2) 1.50%, 12/1/18 .................................. A-1+ VMG-1 5,000 5,000,000 Metropolitan Atlanta Rapid Transportation Authority, Georgia, RB, Sales Tax Revenue, (LOC: Bayerische Landesbank 50%, Westdeutsche Landesbank 50%), Variable Rate Weekly Demand Note(2) 1.40%, 7/1/25 ................................... A-1+ VMG-1 3,000 3,000,000 Monroe County, Georgia, Pollution Control Revenue Authority, RB, Oglethorpe Power, (AMBAC Insured), Series B, Variable Rate Daily Demand Note(2) 1.50%, 1/1/20 ................................... A-1+ NA 1,700 1,700,000 Municipal Electric Authority, Georgia 1.25%, 4/3/02 ................................... A-1+ P-1 3,762 3,762,000 1.20%, 4/4/02 ................................... A-1+ P-1 13,600 13,600,000 Municipal Electric Authority, Georgia, RB, Sub Series B, (LOC: Landesbank-Hessen-Thuringen), Variable Rate Weekly Demand Note(2) 1.50%, 6/1/20 ................................... A-1+ VMG-1 13,400 13,400,000
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 17 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR TAX-FREE SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- Municipal Electric Authority, Georgia, RB, Project One B, (LOC: ABN AMRO Bank N.V.), (SPA: Shindei Bank Ltd.), Variable Rate Weekly Demand Note(2) 1.50%, 1/1/16 A-1+ VMG-1 $ 8,000 $ 8,000,000 Municipal Electric Authority, Georgia, Refunding RB, Project One, Series B, (AMBAC Insured) 5.25%, 1/1/03 ................................... AAA Aaa 2,000 2,048,246 Roswell Housing Authority, Multi-family Housing, RB, Post Canyon Project, (Guaranteed by FNMA), Variable Rate Weekly Demand Note(2) 1.45%, 6/1/25 ................................... A-1+ VMG-1 8,500 8,500,000 Smyrna, Georgia, Housing Authority, Multi-family Housing, RB, F&M Villages Project, (Guaranteed by FNMA), Variable Rate Weekly Demand Note(2) 1.45%, 6/6/25 ................................... A-1+ VMG-1 14,200 14,200,000 ------------ 180,261,528 ------------ IDAHO--1.02% Idaho State, TAN, GO 3.75%, 6/28/02 .................................. A-1+ VMG-1 12,000 12,032,411 ------------ ILLINOIS--12.78% Chicago, Illinois, GO (LOC: Landesbank Hessen) 1.90%, 1/3/03 ................................... SP-1+ MIG-1 5,000 5,000,000 Du Page Water Community, Illinois, RB, Water Revenue, 5.00%, 5/1/02 ................................... AA Aa-1 2,000 2,002,820 Illinois Development Financial Authority, RB, Jewish Federation Projects, (AMBAC Insured), Variable Rate Weekly Demand Note 1.50%, 9/1/23 ................................... A-1+ VMG-1 8,640 8,640,000 Illinois Health Facilities Authority 1.30%, 5/2/02 ................................... A-1+ P-1 10,000 10,000,000 1.40%, 8/28/02 .................................. A-1+ VMG-1 10,000 10,000,000 Illinois Health Facilities Revenue, Northwestern Memorial Hospital, Refunding RB, (SPA: Westdeutsche Landesbank), Variable Rate Weekly Demand Note(2) 1.50%, 8/15/09 .................................. A-1+ VMG-1 1,000 1,000,000 Illinois State Sales Tax Revenue, RB, Series K 4.00%, 6/15/02 .................................. AAA Aa-2 1,945 1,951,815 Illinois, Development Finance Authority, RB, Chicago Symphony Orchestra, (LOC: Northern Trust Co.), Variable Rate Weekly Demand Note(2) 1.40%, 12/1/28 .................................. A-1+ VMG-1 11,300 11,300,000 Illinois, Development Finance Authority, RB, Chicago Symphony Project Orchestra, (LOC: Bank One N.A.), Variable Rate Weekly Demand Note(2) 1.40%, 12/1/33 .................................. A-1 NA 7,000 7,000,000 Illinois, Development Finance Authority, RB, Evanston Northwestern, Series A, (SPA: Bank One N.A.), Variable Rate Weekly Demand Note(2) 1.50%, 5/15/31 .................................. A-1 VMG-1 17,000 17,000,000
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 18 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR TAX-FREE SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- Illinois, Development Finance Authority, RB, Fenwick High School Project, (LOC: Northern Trust Co.), Variable Rate Weekly Demand Note(2) 1.50%, 3/1/32 ................................... A-1+ NA $12,200 $ 12,200,000 Illinois, Health Facilities Authority, RB, Gottlieb Health Resources, Inc., (LOC: Harris Trust and Savings Bank), Variable Rate Weekly Demand Note(2) 1.50%, 11/15/24 ................................. A-1+ VMG-1 6,100 6,100,000 1.50%, 11/15/25 ................................. A-1+ VMG-1 21,840 21,840,000 Illinois, Health Facilities Authority, RB, The Carle Foundation, Series B, (AMBAC Insured), Variable Rate Weekly Demand Note(2) 1.45%, 7/1/28 ................................... A-1+ P-1 5,700 5,700,000 Illinois, Housing Development Authority, RB, Multi-Family Revenue, Lakeshore Plaza, Series A, (MBIA Insured), Variable Rate Weekly Demand Note(2) 1.45%, 7/1/27 ................................... A-1+ VMG-1 9,000 9,000,000 Regional Transportation Authority, Illinois, RB, (MBIA Insured) 5.75%, 7/1/02 ................................... AAA Aaa 3,630 3,666,901 Schaumburg, Illinois, GO, Series A, (SPA: Northern Trust Co.), Variable Rate Weekly Demand Note(2) 1.45%, 12/1/13 .................................. A-1+ VMG-1 4,600 4,600,000 Schaumburg, Illinois, Multi-family Housing, Refunding RB, Variable Rate Weekly Demand Note(2) 1.55%, 12/15/29 ................................. A-1+ VMG-1 13,185 13,185,000 ------------ 150,186,536 ------------ INDIANA--0.27% Indiana Municipal Power Agency, Power Supplies System Revenue, Refunding RB, Series A, (LOC: Toronto Dominion Bank), Variable Rate Weekly Demand Note(2) 1.40%, 1/1/18 ................................... A-1+ VMG-1 1,200 1,200,000 Purdue University, Indiana, RB, Student Fee Bonds, Series G 5.75%, 7/1/02 ................................... AA Aa-2 2,000 2,014,899 ------------ 3,214,899 ------------ IOWA--1.45% Iowa State, TRAN, GO 3.00%, 6/27/02 .................................. SP-1+ MIG-1 10,000 10,027,208 Iowa Finance Authority, Hospital Facilities Revenue, RB, Iowa Health System, Series B, (AMBAC Insured), (SPA: Harris Trust & Savings Bank), Variable Rate Weekly Demand Note(2) 1.50%, 7/1/15 ................................... A-1+ VMG-1 2,400 2,400,000 Iowa Finance Authority, Hospital Facilities Revenue, RB, Iowa Health System, Series B, (AMBAC Insured), Variable Rate Weekly Demand Note(2) 1.50%, 7/1/20 ................................... A-1+ VMG-1 4,625 4,625,000 ------------ 17,052,208 ------------
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 19 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR TAX-FREE SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- KANSAS--0.80% Kansas State, Department of Transportation, Highway Revenue, RB, Series B-2 1.46%, 9/1/20 ................................... A-1+ VMG-1 $ 1,900 $ 1,900,000 Kansas, State Department Transportation Highway Revenue, Series C-2 1.50%, 9/1/20 ................................... A-1+ VMG-1 7,500 7,500,000 ------------ 9,400,000 ------------ KENTUCKY--0.78% Breckenridge County, Kentucky, Lease Program Revenue, Kentucky Association Counties Leasing, RB, (LOC: US Bank NA), Variable Rate Weekly Demand Note(2) 1.50%, 2/1/32 ................................... N-R P-1 7,200 7,200,000 Kentucky State, Property & Community Revenues, RB, Project #64 5.00%, 5/1/02 ................................... AA- Aa-3 2,000 2,003,710 ------------ 9,203,710 ------------ MAINE--0.30% Maine State, GO 4.00%, 6/15/02 .................................. AA Aa-2 1,615 1,619,292 4.00%, 6/15/02 .................................. AA Aa-2 1,925 1,930,115 ------------ 3,549,407 ------------ MARYLAND--1.92% Anne Arundel County, Maryland, GO 4.75%, 5/15/02 .................................. AA+ Aa-2 3,420 3,426,760 Community Development Administration Multi-family Development, Refunding RB, Avalon Ridge Apartments Project, (Guaranteed by FNMA), Variable Rate Weekly Demand Note(2) 1.55%, 6/15/26 .................................. A-1+ VMG-1 16,315 16,315,000 Frederick County, Maryland, BAN, Variable Rate Weekly Demand Note, (SPA: Westdeutsche Landesbank)(2) 1.50%, 10/1/07 .................................. A-1+ VMG-1 600 600,000 Howard County, Maryland, Multi-family Revenue, Refunding RB, Avalon Meadows Project, (Guaranteed FNMA), Variable Rate Weekly Demand Note(2) 1.55%, 6/15/26 .................................. A-1+ N-R 1,000 1,000,000 Montgomery County, Maryland, GO 6.30%, 4/1/02 ................................... AAA Aaa 1,250 1,250,000 ------------ 22,591,760 ------------
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 20 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR TAX-FREE SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- MICHIGAN--2.04% Detroit, Michigan Sewer Disposal Revenue, RB, Series A, (Guaranteed by FGIC) 5.00%, 7/1/02 ................................... AAA Aaa $ 7,400 $ 7,441,574 Detroit, Michigan, Sewer Disposal Revenue, Refunding RB, Series A, (MBIA Insured), Variable Rate Weekly Demand Note(2) 1.60%, 7/1/23 ................................... A-1+ VMG-1 4,700 4,700,000 Detroit, Michigan, Water Supply Systems, RB, (Guaranteed by FGIC), Variable Rate Weekly Demand Note(2) 1.50%, 7/1/13 ................................... A-1+ VMG-1 2,000 2,000,000 Detroit, Michigan, Water Supply Systems, Refunding RB, Second Lien, Series C, (Guaranteed by FGIC), (SPA: FGIC), Variable Rate Weekly Demand Note(2) 1.50%, 7/1/29 ................................... A-1+ VMG-1 3,100 3,100,000 Michigan State University, General Revenue, RB, Series A, (SPA: Dexia Credit Local), Variable Rate Weekly Demand Note(2) 1.40%, 8/15/30 .................................. A-1+ P-1 3,670 3,670,000 Oakland, University of Michigan, General Revenue, RB, (Guaranteed by FGIC), (LOC: FGIC) 1.50%, 3/1/31 ................................... A-1+ VMG-1 3,000 3,000,000 ------------ 23,911,574 ------------ MISSISSIPPI--0.09% Mississippi State, Gaming Counties, GO, Highway Improvements, Series A 5.00%, 7/1/02 ................................... AA Aa-3 1,000 1,005,643 ------------ MISSOURI--2.94% Bi-State Development Agency, Missouri, St. Clair County, (MBIA Insured), (SPA: Nationsbank), Variable Rate Weekly Demand Note(2) 1.65%, 7/1/28 ................................... A-1+ NA 10,500 10,500,000 Missouri State, Health & Educational Facilities Authority, RB, Barnes Hospital Project, (LOC: Morgan Guaranty Trust), Variable Rate Weekly Demand Note(2) 1.45%, 12/1/15 .................................. A-1+ VMG-1 12,600 12,600,000 Missouri State, Board Public Buildings, RB, Series A 5.50%, 5/1/02 ................................... AA Aa-1 3,770 3,777,428 Missouri State, Health & Educational Facilities Authority, Refunding RB, Washington University Project, (SPA: Morgan Guaranty Trust), Variable Rate Weekly Demand Note,2 (a) 1.45%, 9/1/09 ................................... A-1+ VMG-1 7,600 7,600,000 ------------ 34,477,428 ------------
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 21 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR TAX-FREE SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- NEVADA--4.98% Clark County, Nevada, Airport Revenue, RB, Sub Lien, Series C, (Guaranteed by FGIC), (SPA: Landesbank Baden), Variable Rate Weekly Demand Note(2) 1.35%, 7/1/29 ................................... A-1+ VMG-1 $25,460 $ 25,460,000 Clark County, Nevada, Series B 1.25%, 5/14/02 .................................. A-1+ P-1 2,300 2,300,000 Las Vegas Valley, Nevada 1.25%, 4/5/02 ................................... A-1+ P-1 10,000 10,000,000 1.25%, 4/8/02 ................................... A-1+ P-1 11,400 11,400,000 1.20%, 4/23/02 .................................. A-1+ P-1 6,300 6,300,000 1.30%, 6/10/02 .................................. A-1+ P-1 2,000 2,000,000 Nevada State, GO, Project number 52, Series A 7.00%, 5/15/02 .................................. AA Aa-2 1,000 1,005,029 ------------ 58,465,029 ------------ NEW HAMPSHIRE--1.28% New Hampshire, Health and Educational Facilities Authority Revenue, Colby Sawyer College, RB, (LOC: Allied Irish Bank Plc), Variable Rate Weekly Demand Note(2) 1.40%, 8/1/31 ................................... A-1+ N-R 15,000 15,000,000 ------------ NEW JERSEY--1.03% New Jersey State, RB, Series A 4.50%, 6/15/02 .................................. AA Aa-2 12,080 12,129,534 ------------ NEW MEXICO--0.56% Mew Mexico State Highway Commission Revenue, RB, (FSA: Morgan Guaranty Trust) 3.25%, 6/15/02 .................................. AAA Aaa 2,000 2,006,398 New Mexico State, Highway Community Tax, RB, Sub Lien, Series A 4.50%, 6/15/02 .................................. AA+ Aa-2 4,610 4,625,715 ------------ 6,632,113 ------------ NEW YORK--6.45% New York City, New York, RAN, GO, Series A 3.00%, 4/12/02 .................................. SP-1+ MIG-1 23,000 23,011,981 New York State Energy Research and Development Authority, Pollution Control Revenue, RB, Series A, (LOC: Toronto Dominion Bank), Variable Rate Weekly Demand Note(2) 1.35%, 7/1/15 ................................... A-1+ VMG-1 4,400 4,400,000 New York Transitional Finance Authority Revenue, BAN, Series 3 2.75%, 11/13/02 ................................. SP-1+ MIG-1 20,000 20,111,163 New York Transitional Finance Authority Revenue, Series 4 2.50%, 2/26/03 .................................. SP-1+ VMG-1 28,000 28,232,464 ------------ 75,755,608 ------------
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 22 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR TAX-FREE SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- NORTH CAROLINA--6.23% Charlotte-Mecklenberg Hospital Authority, North Carolina, Health Care System Revenue, RB, Series D, Variable Rate Weekly Demand Note(2) 1.40%, 1/15/26 .................................. A-1+ VMG-1 $20,100 $ 20,100,000 Mecklenburg County, North Carolina, GO, Series B, Variable Rate Weekly Demand Note(2) 1.55%, 4/1/18 ................................... A-1+ VMG-1 2,000 2,000,000 Mecklenburg County, North Carolina, GO, Series B, Variable Rate Weekly Demand Note(2) 1.55%, 4/1/19 ................................... A-1+ VMG-1 7,000 7,000,000 Mecklenburg County, North Carolina, GO, Series C 4.00%, 4/1/02 ................................... AAA Aaa 4,635 4,635,000 Mecklenburg County, North Carolina, Public Improvement, GO, Series C, Variable Rate Weekly Demand Note(2) 1.40%, 2/1/12 ................................... A-1+ VMG-1 3,500 3,500,000 North Carolina Medical Care Commission Hospital Revenue, RB, Moses H. Cone Memorial Hospital Project, (SPA: Wachovia Bank N.A.), Variable Rate Weekly Demand Note(2) 1.60%, 9/1/05 ................................... A-1+ VMG-1 9,200 9,200,000 North Carolina Medical Care Commission Hospital Revenue, RB, North Carolina Baptist Hospital Project, Series B, (SPA: Wachovia Bank of N.C.), Variable Rate Weekly Demand Note(2) 1.44%, 6/1/22 ................................... A-1+ VMG-1 14,000 14,000,000 North Carolina Medical Care Community Hospital Revenue, RB, Moses H. Cone Memorial Hospital Project, (SPA: Wachovia Bank & Trust), Variable Rate Weekly Demand Note(2) 1.60%, 10/1/23 .................................. A-1+ NA 8,800 8,800,000 North Carolina Medical Care Community Hospital Revenue, RB, Moses H. Cone Memorial Hospital Project, (SPA: Wachovia Bank), Variable Rate Weekly Demand Note(2) 1.60%, 9/1/02 ................................... A-1+ NA 1,875 1,875,000 North Carolina, Duke University 1.40%, 4/4/02 ................................... A-1+ P-1 2,056 2,056,000 ------------ 73,166,000 ------------ OHIO--1.30% Ohio State, GO, Higher Education Capital, Series B 5.25%, 5/1/02 ................................... AA+ Aa-1 1,150 1,152,365 Ohio State, GO, Higher Education, Series B 4.00%, 11/1/02 .................................. AA+ Aa-1 3,000 3,044,156 Ohio State, GO, Highway Capital Improvements, Series C 4.50%, 5/1/02 ................................... AAA Aaa 3,775 3,781,416 Ohio State, GO, Highway Capital Improvements, Series D 4.00%, 5/1/02 ................................... AAA Aa-1 3,420 3,422,691 Ohio State, Public Facilities, RB, Higher Education Capital, Series II-C 4.00%, 6/1/02 ................................... AAA Aaa 1,000 1,002,127 Ohio State, Water Development Authority Pollution Control, RB, (MBIA Insured) 6.00%, 6/1/02 ................................... AAA Aaa 2,875 2,890,912 ------------ 15,293,667 ------------
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 23 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR TAX-FREE SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- OKLAHOMA--0.37% Oklahoma State Industrial Authority, Integris Baptist, RB, Series B, (MBIA Insured), Variable Rate Weekly Demand Note(2) 1.50%, 8/15/29 .................................. A-1+ VMG-1 $ 4,300 $ 4,300,000 ------------ PENNSYLVANIA--1.77% Harrisburg, Pennsylvania Authority Revenue, RB, (LOC: Hypovereinsbank), Variable Rate Weekly Demand Note(2) 1.53%, 3/1/34 ................................... A-1 NA 10,000 10,000,000 Pennsylvania State Turnpike, Refunding RB, Series U, (SPA: Dexia Credit Local), Variable Rate Weekly Demand Note(2) 1.40%, 12/1/19 .................................. A-1+ VMG-1 9,000 9,000,000 Pennsylvania State, GO 5.00%, 6/15/02 .................................. AA Aa-2 1,800 1,808,565 ------------ 20,808,565 ------------ RHODE ISLAND--0.30% Rhode Island State, GO, (MBIA Insured) 4.25%, 8/1/02 ................................... AAA Aaa 3,460 3,477,319 ------------ SOUTH CAROLINA--1.96% Greenville County, South Carolina, School District, BAN, Series B, (SCSDE Insured) 3.75%, 4/24/02 .................................. N-R MIG-1 13,000 13,008,935 Rock Hill, South Carolina, Utility System Revenue, RB, Series B, (AMBAC Insured), (SPA: Wachovia Bank), Variable Rate Weekly Demand Note(2) 1.35%, 1/1/23 ................................... A-1+ VMG-1 6,265 6,265,000 South Carolina State, GO, Series A 4.50%, 5/1/02 ................................... AAA Aaa 3,750 3,754,518 ------------ 23,028,453 ------------ TENNESSEE--3.94% Knoxville, Tennessee, BAN 3.50%, 6/1/02 ................................... SP-1+ MIG-1 8,000 8,014,059 Knoxville, Tennessee, GO 5.00%, 6/1/02 ................................... SP-1+ NA 8,000 8,039,318 Memphis, Tennessee 1.20%, 4/29/02 .................................. A-1+ P-1 10,000 10,000,000 1.25%, 4/29/02 .................................. A-1+ P-1 6,000 6,000,000 1.25%, 4/29/02 .................................. A-1+ P-1 6,000 6,000,000 Memphis, Tennessee, GO, Series A, (SPA: Westdeutsche Landesbank), Variable Rate Weekly Demand Note(2) 1.55%, 8/1/04 ................................... A-1+ VMG-1 1,600 1,600,000 1.55%, 8/1/07 ................................... A-1+ VMG-1 2,800 2,800,000 Nashville & Davidson County, Tennessee, GO 4.50%, 5/15/02 .................................. AA Aa-2 3,840 3,846,552 ------------ 46,299,929 ------------
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 24 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR TAX-FREE SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- TEXAS--11.33% Angelina & Neches River Authority, Texas, Industrial Development Corporation, RB, Solid Waste Revenue, (LOC: Bank of America TX), Variable Rate Daily Demand Note(2) 1.50%, 5/1/14 ................................... A-1+ VMG-1 $ 600 $ 600,000 Brownsville, Texas, Utility System Revenue, Refunding RB, Series A, (MBIA Insured), Variable Rate Weekly Demand Note(2) 1.45%, 9/1/25 ................................... A-1+ VMG-1 7,500 7,500,000 Brownsville, Texas, Utility System Revenue, Refunding RB, Series B, (MBIA Insured), Variable Rate Weekly Demand Note(2) 1.60%, 9/1/25 ................................... A-1+ VMG-1 34,500 34,500,000 Harris County, Texas, GO, Toll Road, Series G, Variable Rate Weekly Demand Note(2) 1.40%, 8/1/20 ................................... A-1+ VMG-1 1,000 1,000,000 Tarrant County, Texas, GO 4.00%, 7/15/02 .................................. AAA Aaa 2,195 2,202,797 Texas State 1.20%, 4/9/02 ................................... A-1+ P-1 10,000 10,000,000 Texas State Public Finance Authority 1.65%, 5/1/02 ................................... A-1+ P-1 15,000 15,000,000 Texas State, TRAN 3.75%, 8/29/02 .................................. SP-1+ MIG-1 10,000 10,080,700 Texas State, Turnpike Authority, Dallas Northway Revenue, Refunding RB, (FGIC Insured) 6.00%, 1/1/03 ................................... AAA Aaa 4,000 4,123,327 Texas Transportation 3.75%, 8/29/02 .................................. SP-1+ MIG-1 10,000 10,051,727 University of Texas 1.20%, 4/4/02 ................................... A-1+ P-1 12,000 12,000,000 1.25%, 5/20/02 .................................. A-1+ P-1 15,000 15,000,000 University of Texas, RB, Series A , Variable Rate Weekly Demand Note(2) 1.45%, 8/15/13 .................................. A-1+ VMG-1 11,000 11,000,000 ------------ 133,058,551 ------------ UTAH--1.23% Utah State, GO, Series C, Variable Rate Weekly Demand Note(2) 1.50%, 7/1/16 ................................... A-1+ VMG-1 14,400 14,400,000 ------------ VIRGINIA--1.06% Fairfax County, Virginia, GO, Series A 4.50%, 6/1/02 ................................... AAA Aaa 1,000 1,002,941 Virginia State, Public School Authority, RB, Series I 3.50%, 4/15/02 .................................. AA+ Aa-1 11,460 11,463,441 ------------ 12,466,382 ------------
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 25 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR TAX-FREE SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- WASHINGTON--1.52% King County, Washington, Sewer Revenue, RB, Series A, (LOC: Landesbank Hessen), Variable Rate Weekly Demand Note(2) 1.40%, 1/1/32 ................................... A-1+ VMG-1 $10,000 $ 10,000,000 King County, Washington, Sewer Revenue, RB, Series B, (LOC: Landesbank Hessen), Variable Rate Weekly Demand Note(2) 1.50%, 1/1/32 ................................... A-1+ VMG-1 7,800 7,800,000 ------------ 17,800,000 ------------ WISCONSIN--3.28% Oak Creek, Wisconsin, Pollution Control Revenue, RB, Wisconsin Electric Power Co. Project, Variable Rate Weekly Demand Note(2) 1.70%, 8/1/16 ................................... A-1 VMG-1 18,200 18,200,000 Pleasant Prairie, Wisconsin, Environmental Improvements Revenue, Refunding RB, Wisconsin Electric Power Co. Project, Variable Rate Weekly Demand Note(2) 1.70%, 3/1/06 ................................... A-1 P-1 100 100,000 Pleasant Prairie, Wisconsin, Pollution Control Revenue, Refunding RB, Wisconsin Electric Power Co. Project, Series A, Variable Rate Weekly Demand Note(2) 1.70%, 9/1/30 ................................... A-1 VMG-1 3,610 3,610,000 Pleasant Prairie, Wisconsin, Pollution Control Revenue, Refunding RB, Wisconsin Electric Power Co. Project, Series B, Variable Rate Weekly Demand Note(2) 1.70%, 9/1/30 ................................... A-1 VMG-1 11,150 11,150,000 Wisconsin State, GO 6.00%, 5/1/02 ................................... AA Aa-2 2,000 2,004,981 Wisconsin State, Series A, GO 5.90%, 5/1/02 ................................... AA Aa-2 2,000 2,004,821 5.00%, 7/1/02 ................................... AA- Aa-3 1,500 1,508,313 ------------ 38,578,115 ------------
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 26 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS March 31, 2002
RATING(1) ------------------ PAR TAX-FREE SERIES S&P MOODY'S (000) MARKET VALUE - ----------------------------------------------------------------------------------------------------------------- WYOMING--0.32% Lincoln County, Wyoming, Pollution Control Revenue, Exxon Project, RB, Series A 1.41%, 11/1/14 .................................. A-1+ P-1 $ 2,500 $ 2,500,000 Sublette County, Wyoming, Pollution Control Revenue, Exxon Project, RB, Variable Rate Weekly Demand Note(2) 1.45%, 11/1/14 .................................. A-1+ VMG-1 1,200 1,200,000 -------------- 3,700,000 -------------- TOTAL INVESTMENTS (Amortized Cost $1,175,807,080)(3) ........................................... 100.09% $1,175,807,080 LIABILITIES IN EXCESS OF OTHER ASSETS ........................................... (0.09) (1,057,322) ------ -------------- NET ASSETS ...................................................................... 100.00% $1,174,749,758 ====== ==============
- -------------------------------------------------------------------------------- 1 Unaudited. 2 Demand security; payable upon demand by the Fund with usually no more than seven (7) calendar days' notice. Interest rates are redetermined periodically. Rates shown are those in effect on March 31, 2002. 3 Also aggregate cost for federal tax purposes. INVESTMENT ABBREVIATIONS: BAN --Bond Anticipation Note FNMA --Federal National Mortgage Association GO --General Obligation LOC --Letter of Credit RAN --Revenue Anticipation Note RB --Revenue Bond SCSDE --South Carolina School District Education SPA --Standby Bond Purchase Agreement TAN --Tax Anticipation Note TRAN --Tax Revenue Anticipation Note INSURANCE ABBREVIATIONS: AMBAC --AMBAC Indemnity Corp. FGIC --Financial Guaranty Insurance Company FSA --Financial Security Assurance MBIA --Municipal Bond Investors Assurance S&P MUNICIPAL BOND RATINGS: AAA --Of the highest quality. AA --The second strongest capacity for payment of debt service. Those issues determined to possess very strong safety characteristics are denoted with a plus (+) sign. SP-1 --Notes that have a strong capacity to pay principle and interest. Those issues determined to possess overwhelming safety characteristics are assigned a plus (+) designation. 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. MOODY'S MUNICIPAL BOND RATINGS: Aaa --Judged to be of the best quality. Aa -- Judged to be of higher quality by all standards. Issues are sometimes rated with a 1, 2 or 3, which denotes a high, medium or low ranking within the rating. MIG-1 --Notes of the best quality. VMIG-1 --Variable rate demand obligations of the best quality. P-1 --Commercial paper bearing this designation is of the best quality. A detailed description of the above ratings can be found in the Fund's Statement of Additional Information. See Notes to Financial Statements. - -------------------------------------------------------------------------------- 27 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2002 PRIME TREASURY TAX-FREE SERIES SERIES SERIES - ----------------------------------------------------------------------------------------------------------------- ASSETS Investments, at amortized cost ...................... $5,129,615,387 $946,067,350 $1,175,807,080 Cash ................................................ -- 3,462 160,411 Receivable for securities sold ...................... -- -- 4,753,663 Receivable for capital shares sold .................. 4,906 -- -- Interest receivable ................................. 15,204,860 362,155 5,358,233 Prepaid expenses and other .......................... 1,208,433 241,238 332,684 -------------- ------------ -------------- Total assets ........................................... 5,146,033,586 946,674,205 1,186,412,071 -------------- ------------ -------------- LIABILITIES Payable for securities purchased .................... 9,435,051 -- 10,296,453 Payable for capital shares redeemed ................. 429,373 -- -- Income dividend payable ............................. 2,312,688 407,347 432,433 Accounting fees payable ............................. 15,508 11,717 12,106 Advisory fees payable ............................... 1,134,916 190,654 281,224 Distribution fees payable ........................... 963,706 -- -- Custody fees payable ................................ 67,346 11,182 17,480 Transfer agent fees payable ......................... 663,678 67,738 46,251 Accrued expenses and other .......................... 1,577,945 415,305 576,366 -------------- ------------ -------------- Total liabilities ...................................... 16,600,211 1,103,943 11,662,313 -------------- ------------ -------------- NET ASSETS ............................................. $5,129,433,375 $945,570,262 $1,174,749,758 ============== ============ ============== COMPOSITION OF NET ASSETS Paid-in capital ..................................... $5,129,029,989 $945,293,430 $1,174,867,541 Undistributed (distributions in excess of) net investment income ............................. 158,140 85,252 (55,229) Accumulated net realized gain (loss) from investment transactions ........................... 245,246 191,580 (62,554) -------------- ------------ -------------- NET ASSETS ............................................. $5,129,433,375 $945,570,262 $1,174,749,758 ============== ============ ==============
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 28 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2002 PRIME TREASURY TAX-FREE SERIES SERIES SERIES - ---------------------------------------------------------------------------------------------------------------- COMPUTATION OF NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE Deutsche Bank Alex. Brown Cash Reserve Prime Shares, Treasury Shares and Tax-Free Shares Net assets .......................................... $4,320,764,048 $745,637,781 $1,006,612,574 ============== ============ ============== Shares outstanding .................................. 4,320,415,351 745,404,650 1,006,726,623 ============== ============ ============== Net asset value per share ........................... $ 1.00 $ 1.00 $ 1.00 ============== ============ ============== Deutsche Bank Alex. Brown Cash Reserve Prime Institutional Shares, Treasury Institutional Shares and Tax-Free Institutional Shares Net assets .......................................... $ 750,110,039 $199,932,481 $ 168,137,184 ============== ============ ============== Shares outstanding .................................. 750,063,357 199,892,970 168,145,802 ============== ============ ============== Net asset value per share ........................... $ 1.00 $ 1.00 $ 1.00 ============== ============ ============== Cash Reserve Prime Class A Shares Net assets .......................................... $ 11,524,175 $ -- $ -- ============== ============ ============== Shares outstanding .................................. 11,522,981 -- -- ============== ============ ============== Net asset value per share ........................... $ 1.00 $ -- $ -- ============== ============ ============== Cash Reserve Prime Class B Shares Net assets .......................................... $ 10,761,040 $ -- $ -- ============== ============ ============== Shares outstanding .................................. 10,760,311 -- -- ============== ============ ============== Net asset value per share ........................... $ 1.00 $ -- $ -- ============== ============ ============== Cash Reserve Prime Class C Shares Net assets .......................................... $ 679,304 $ -- $ -- ============== ============ ============== Shares outstanding .................................. 679,343 -- -- ============== ============ ============== Net asset value per share ........................... $ 1.00 $ -- $ -- ============== ============ ============== Quality Cash Reserve Prime Shares Net assets .......................................... $ 35,594,769 $ -- $ -- ============== ============ ============== Shares outstanding .................................. 35,585,928 -- -- ============== ============ ============== Net asset value per share ........................... $ 1.00 $ -- $ -- ============== ============ ==============
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 29 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2002 PRIME TREASURY TAX-FREE SERIES SERIES SERIES - ---------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest ............................................. $185,466,404 $30,017,408 $35,454,653 Dividend ............................................. 16,152,608 -- -- ------------ ----------- ----------- Total income ............................................ 201,619,012 30,017,408 35,454,653 ------------ ----------- ----------- EXPENSES Investment advisory fees ............................. 14,871,017 2,292,981 3,887,587 Distribution fees: Deutsche Bank Alex. Brown Cash Reserve Prime Shares, Treasury Shares and Tax-Free Shares, respectively ............... 12,224,901 2,112,030 3,290,322 Cash Reserve Prime Class A Shares .................. 29,144 -- -- Cash Reserve Prime Class B Shares .................. 89,867 -- -- Cash Reserve Prime Class C Shares .................. 8,821 -- -- Quality Cash Reserve Prime Shares .................. 229,233 -- -- Shareholder service fees: Deutsche Bank Alex. Brown Cash Reserve Prime Shares, Treasury Shares and Tax-Free Shares, respectively ............................... 3,148,858 548,128 842,452 Cash Reserve Prime Class B Shares .................. 29,956 -- -- Cash Reserve Prime Class C Shares .................. 2,941 -- -- Transfer agent fees .................................. 4,209,655 416,526 323,242 Accounting fees ...................................... 188,906 138,379 144,794 Registration fees .................................... 468,967 81,968 188,318 Printing and shareholder reports ..................... 375,043 81,059 57,023 Professional fees .................................... 92,194 43,117 48,817 Custody fees ......................................... 318,718 77,185 74,365 Directors' fees ...................................... 249,381 42,944 128,155 Miscellaneous ........................................ 287,790 45,787 84,452 ------------ ----------- ----------- Total expenses ..................................... 36,825,392 5,880,104 9,069,527 Less: fees waivers and/or expense reimbursements ..................................... -- (492,531) -- ------------ ----------- ----------- Net expenses ....................................... 36,825,392 5,387,573 9,069,527 ------------ ----------- ----------- NET INVESTMENT INCOME ................................... 164,793,620 24,629,835 26,385,126 NET REALIZED GAIN FROM INVESTMENT TRANSACTIONS .............................. 245,752 191,580 78,365 ------------ ----------- ----------- NET INCREASE IN NET ASSETS FROM OPERATIONS ...................................... $165,039,372 $24,821,415 $26,463,491 ============ =========== ===========
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 30 [THIS PAGE INTENTIONALLY LEFT BLANK] Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED MARCH 31, 2002 2001 2002 2001 - ------------------------------------------------------------------------------------------------------------------------------------ PRIME SERIES TREASURY SERIES ------------ --------------- INCREASE (DECREASE) IN NET ASSETS FROM: OPERATIONS Net investment income ..................................$ 164,793,620 $ 364,872,769 $ 24,629,835 $ 46,478,432 Net realized gain from investment transactions ......... 245,752 73,226 191,580 149,889 ---------------- ---------------- ------------- --------------- Net increase in net assets from operations ............. 165,039,372 364,945,995 24,821,415 46,628,321 ---------------- ---------------- ------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS Net Investment Income: Deutsche Bank Alex. Brown Cash Reserve Prime Shares, Treasury Shares and Tax-Free Shares, respectively ...................................... (135,065,270) (317,575,763) (20,988,688) (40,218,693) Deutsche Bank Alex. Brown Cash Reserve Prime Institutional Shares, Treasury Institutional Shares and Tax-Free Institutional Shares, respectively ...................................... (28,192,942) (43,000,080) (3,826,931) (6,400,227) Cash Reserve Prime Class A Shares ...................... (327,361) (844,641) -- -- Cash Reserve Prime Class B Shares ...................... (241,512) (280,056) -- -- Cash Reserve Prime Class C Shares ...................... (25,475) (41,081) -- -- Quality Cash Reserve Prime Shares ...................... (975,379) (3,131,157) -- -- ---------------- ---------------- ------------- --------------- Total distributions ...................................... (164,827,939) (364,872,778) (24,815,619) (46,618,920) ---------------- ---------------- ------------- --------------- CAPITAL SHARE TRANSACTIONS (at net asset value of $1.00 per share) Net proceeds from sales of shares ...................... 32,128,229,715 49,691,006,111 3,554,539,347 4,063,726,029 Net dividend reinvestments ............................. 159,795,311 340,652,084 22,636,818 42,935,226 Net cost of shares redeemed ............................ (33,641,388,146) (50,054,007,599) (3,635,639,799) (3,991,753,413) ---------------- ---------------- ------------- --------------- Net increase (decrease) in net assets from capital share transactions ........................... (1,353,363,120) (22,349,404) (58,463,634) 114,907,842 ---------------- ---------------- ------------- --------------- TOTAL INCREASE (DECREASE) IN NET ASSETS ................... (1,353,151,687) (22,276,187) (58,457,838) 114,917,243 NET ASSETS Beginning of year ...................................... 6,482,585,062 6,504,861,249 1,004,028,100 889,110,857 ---------------- ---------------- ------------- --------------- End of year ............................................$ 5,129,433,375 $ 6,482,585,062 $ 945,570,262 $ 1,004,028,100 ================ ================ ============= ===============
FOR THE YEARS ENDED MARCH 31, 2002 2001 - ------------------------------------------------------------------------------------------------------- TAX-FREE SERIES --------------- INCREASE (DECREASE) IN NET ASSETS FROM: OPERATIONS Net investment income ...................................... $ 26,385,126 $ 55,506,010 Net realized gain from investment transactions ............. 78,365 15,703 --------------- --------------- Net increase in net assets from operations ................. 26,463,491 55,521,713 --------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS Net Investment Income: Deutsche Bank Alex. Brown Cash Reserve Prime Shares, Treasury Shares and Tax-Free Shares, respectively .......................................... (23,152,902) (50,707,371) Deutsche Bank Alex. Brown Cash Reserve Prime Institutional Shares, Treasury Institutional Shares and Tax-Free Institutional Shares, respectively .......................................... (3,232,224) (4,682,173) Cash Reserve Prime Class A Shares .......................... -- -- Cash Reserve Prime Class B Shares .......................... -- -- Cash Reserve Prime Class C Shares .......................... -- -- Quality Cash Reserve Prime Shares .......................... -- -- --------------- --------------- Total distributions .......................................... (26,385,126) (55,389,544) --------------- --------------- CAPITAL SHARE TRANSACTIONS (at net asset value of $1.00 per share) Net proceeds from sales of shares .......................... 6,283,456,774 8,812,206,085 Net dividend reinvestments ................................. 24,232,750 50,329,986 Net cost of shares redeemed ................................ (7,008,913,820) (8,768,588,709) --------------- --------------- Net increase (decrease) in net assets from capital share transactions ............................... (701,224,296) 93,947,362 --------------- --------------- TOTAL INCREASE (DECREASE) IN NET ASSETS ....................... (701,145,931) 94,079,531 NET ASSETS Beginning of year .......................................... 1,875,895,689 1,781,816,158 --------------- --------------- End of year ................................................ $ 1,174,749,758 $ 1,875,895,689 =============== ===============
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 32 & 33 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
PRIME SHARES FOR THE YEARS ENDED MARCH 31, FOR THE YEARS ENDED MARCH 31, 2002 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE, BEGINNING OF YEAR ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ---------- ---------- ---------- ---------- ---------- INCOME FROM INVESTMENT OPERATIONS Net investment income ......................... 0.0270 0.0578 0.0480 0.0473 0.0494 DISTRIBUTIONS TO SHAREHOLDERS Net investment income ......................... (0.0270) (0.0578) (0.0480) (0.0473) (0.0494) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF YEAR ..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========== ========== ========== ========== ========== TOTAL INVESTMENT RETURN .......................... 2.74% 5.94% 4.90% 4.84% 5.05% SUPPLEMENTAL DATA AND RATIOS: Net assets, end of year (000s omitted) ........ $4,320,764 $5,735,781 $5,772,616 $3,727,990 $3,164,538 Ratios to average net assets: Net investment income ....................... 2.76% 5.77% 4.86% 4.71% 4.94% Expenses .................................... 0.67% 0.66% 0.66% 0.63% 0.67%
See Notes to Financial Statements. - ----------------------------------------------------------------------------- 34 & 35 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
PRIME INSTITUTIONAL SHARES FOR THE YEAR ENDED MARCH 31, FOR THE YEAR ENDED MARCH 31, 2002 2001 2000 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE, BEGINNING OF YEAR ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS Net investment income .......................... 0.0302 0.0610 0.0511 0.0499 0.0519 DISTRIBUTIONS TO SHAREHOLDERS Net investment income .......................... (0.0302) (0.0610) (0.0511) (0.0499) (0.0519) -------- -------- -------- -------- -------- NET ASSET VALUE, END OF YEAR ...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN ........................... 3.06% 6.28% 5.24% 5.11% 5.31% SUPPLEMENTAL DATA AND RATIOS: Net assets, end of year (000s omitted) ......... $750,110 $671,539 $637,767 $388,447 $317,972 Ratios to average net assets: Net investment income ........................ 3.01% 6.01% 5.18% 4.98% 5.22% Expenses ..................................... 0.36% 0.34% 0.34% 0.36% 0.42%
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 36 & 37 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
TREASURY SHARES FOR THE YEAR ENDED MARCH 31, FOR THE YEARS ENDED MARCH 31, 2002 2001 2000 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE, BEGINNING OF YEAR ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS Net investment income .......................... 0.0250 0.0539 0.0431 0.0427 0.0464 DISTRIBUTIONS TO SHAREHOLDERS Net investment income .......................... (0.0250) (0.0539) (0.0431) (0.0427) (0.0464) -------- -------- -------- -------- -------- NET ASSET VALUE, END OF YEAR ...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN ........................... 2.53% 5.53% 4.40% 4.35% 4.74% SUPPLEMENTAL DATA AND RATIOS: Net assets, end of year (000s omitted) ......... $745,638 $866,508 $790,443 $816,700 $798,427 Ratios to average net assets: Net investment income ........................ 2.47% 5.36% 4.31% 4.26% 4.65% Expenses after waivers and/or reimbursements . 0.59% 0.56% 0.61% 0.58% 0.59% Expenses before waivers and/or reimbursements 0.64% 0.61% 0.66% 0.58% 0.59%
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 38 & 39 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
TREASURY INSTITUTIONAL SHARES FOR THE YEAR ENDED MARCH 31, FOR THE YEARS ENDED MARCH 31, 2002 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE, BEGINNING OF YEAR ................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- ------- -------- ------- INCOME FROM INVESTMENT OPERATIONS Net investment income ............................. 0.0281 0.0571 0.0462 0.0453 0.0489 DISTRIBUTIONS TO SHAREHOLDERS Net investment income ............................. (0.0281) (0.0571) (0.0462) (0.0453) (0.0489) -------- -------- ------- -------- ------- NET ASSET VALUE, END OF YEAR ......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======= ======== ======= TOTAL INVESTMENT RETURN .............................. 2.85% 5.86% 4.72% 4.63% 5.00% SUPPLEMENTAL DATA AND RATIOS: Net assets, end of year (000s omitted) ............ $199,932 $137,520 $98,668 $122,563 $98,780 Ratios to average net assets: Net investment income ........................... 2.71% 5.66% 4.62% 4.54% 4.91% Expenses after waivers and/or reimbursements .... 0.28% 0.26% 0.29% 0.33% 0.34% Expenses before waivers and/or reimbursements ... 0.33% 0.31% 0.34% 0.33% 0.34%
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 40 & 41 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
TAX-FREE SHARES FOR THE YEAR ENDED MARCH 31, FOR THE YEARS ENDED MARCH 31, 2002 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE, BEGINNING OF YEAR .......................$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ---------- ---------- ---------- ---------- -------- INCOME FROM INVESTMENT OPERATIONS Net investment income ................................. 0.0168 0.0333 0.0276 0.0277 0.0306 DISTRIBUTIONS TO SHAREHOLDERS Net investment income ................................. (0.0168) (0.0333) (0.0276) (0.0277) (0.0306) ---------- ---------- ---------- ---------- -------- NET ASSET VALUE, END OF YEAR .............................$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========== ========== ========== ========== ======== TOTAL INVESTMENT RETURN .................................. 1.69% 3.38% 2.80% 2.81% 3.10% SUPPLEMENTAL DATA AND RATIOS: Net assets, end of year (000s omitted) ................$1,006,613 $1,701,940 $1,664,370 $1,047,391 $841,185 Ratios to average net assets: Net investment income ............................... 1.76% 3.31% 2.78% 2.74% 3.05% Expenses ............................................ 0.65% 0.64% 0.65% 0.58% 0.60%
See Notes to Financial Statements. - -------------------------------------------------------------------------------- 42 & 43 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
FOR THE PERIOD TAX-FREE INSTITUTIONAL SHARES FOR THE JUNE 2, 1997(1) FOR THE YEAR ENDED MARCH 31, YEARS ENDED MARCH 31, THROUGH MARCH 31, 2002 2001 2000 1999 1998 - -------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE, BEGINNING OF YEAR .......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- ------- ------- INCOME FROM INVESTMENT OPERATIONS Net investment income .................................... 0.0200 0.0363 0.0306 0.0303 0.0273 DISTRIBUTIONS TO SHAREHOLDERS Net investment income .................................... (0.0200) (0.0363) (0.0306) (0.0303) (0.0273) -------- -------- -------- ------- ------- NET ASSET VALUE, END OF YEAR ................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======= ======= TOTAL INVESTMENT RETURN ..................................... 2.01% 3.69% 3.10% 3.07% 2.76% SUPPLEMENTAL DATA AND RATIOS: Net assets, end of year (000s omitted) ................... $168,137 $173,956 $117,446 $84,600 $76,683 Ratios to average net assets: Net investment income .................................. 1.98% 3.62% 3.09% 3.03% 3.29%(2) Expenses ............................................... 0.33% 0.34% 0.35% 0.33% 0.35%(2)
- -------------------------------------------------------------------------------- 1 Commencemnt of operations. 2 Annualized. See Notes to Financial Statements. - -------------------------------------------------------------------------------- 44 & 45 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS NOTE 1--ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES A. ORGANIZATION Deutsche Bank Alex. Brown Cash Reserve Fund, Inc. (the 'Fund') is registered under the Investment Company Act of 1940 (the 'Act'), as amended, as a diversified, open-end management investment company. The Fund is organized as a corporation under the laws of the state of Maryland. The Prime Series, the Treasury Series and the Tax-Free Series are the three series the Fund offers to investors. The Prime Series offers six classes of shares to investors: Deutsche Bank Alex. Brown Cash Reserve Prime Shares ('Prime Shares'), Cash Reserve Prime Class A Shares ('Class A Shares'), Cash Reserve Prime Class B Shares ('Class B Shares'), Cash Reserve Prime Class C Shares ('Class C Shares'), Quality Cash Reserve Prime Shares ('Quality Cash Shares') and Deutsche Bank Alex. Brown Cash Reserve Prime Institutional Shares ('Prime Institutional Shares'). The Treasury Series offers two classes of shares to investors: Deutsche Bank Alex. Brown Cash Reserve Treasury Shares ('Treasury Shares') and Deutsche Bank Alex. Brown Cash Reserve Treasury Institutional Shares ('Treasury Institutional Shares'). The Tax-Free Series offers two classes of shares to investors: Deutsche Bank Alex. Brown Cash Reserve Tax-Free Shares ('Tax-Free Shares') and Deutsche Bank Alex. Brown Cash Reserve Tax-Free Institutional Shares ('Tax-Free Institutional Shares'). All shares have equal rights with respect to voting except that shareholders vote separately on matters affecting their rights as holders of a particular series or class. The investment objective of each Series is as follows: Prime Series and Treasury Series--to seek as high a level of current income as is consistent with preservation of capital and liquidity; Tax-Free Series--to seek as high a level of current income exempt from federal income tax as is consistent with preservation of capital and liquidity. Details concerning the Series' investment objectives and policies and the risk factors associated with the Series' investments are described in the Series' Prospectus and Statement of Additional Information. B. VALUATION OF SECURITIES The Fund values its investments at amortized cost. C. SECURITIES TRANSACTIONS AND INVESTMENT INCOME Securities transactions are recorded on trade date. Realized gains and losses are determined by comparing the proceeds of a sale or the cost of a purchase with a specific offsetting transaction. Interest income, including amortization of premiums and accretion of discounts, is accrued daily. Estimated expenses are also accrued daily. Distribution or service fees specifically attributable to a class are allocated to that class. All other expenses, income, gains and losses are allocated among the classes based upon their relative net assets. D. DISTRIBUTIONS The Fund distributes all of its net investment income in the form of dividends, which are declared and recorded daily. Accumulated daily dividends are distributed to shareholders monthly. E. FEDERAL INCOME TAXES It is the Fund's policy to continue to qualify as a regulated investment company under the Internal Revenue Code and to distribute substantially all of its taxable income to shareholders. Therefore, no federal income taxes have been accrued. F. REPURCHASE AGREEMENTS The Prime Series and Treasury Series (the 'Series') may make short term investments in repurchase agreements that are fully collateralized by US government securities. Under the terms of a repurchase agreement, a financial institution sells fixed income securities to the Series and agrees to buy them back on a specified day in return for the principal amount of the original sale plus accrued interest. The custodial bank holds the collateral in a separate account until the agreement matures. If the value of the securities falls below the principal amount - -------------------------------------------------------------------------------- 46 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS of the repurchase agreement plus accrued interest, the financial institution deposits additional collateral by the following business day. If the financial institution either fails to deposit the required additional collateral or fails to repurchase the securities as agreed, the Series has the right to sell the securities and recover any resulting loss from the financial institution. If the financial institution enters into bankruptcy, the Series' claims on the collateral may be subject to legal proceedings. G. ESTIMATES In preparing its financial statements in conformity with accounting principles generally accepted in the United States, management makes estimates and assumptions. Actual results may be different. NOTE 2--FEES AND TRANSACTIONS WITH AFFILIATES Investment Company Capital Corp. ('ICCC'), an indirect, wholly owned subsidiary of Deutsche Bank AG, is the Advisor for each series. The Fund pays the Advisor an annual fee based on its average daily net assets which is calculated daily and paid monthly at the following annual rates: 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 in excess of $3.5 billion. The Prime Series pays the Advisor an additional advisory fee that is calculated daily and paid monthly at the annual rate of 0.02% of its average daily net assets. The Tax-Free Series pays the Advisor an additional advisory fee that is calculated daily and paid monthly at the annual rate of 0.03% of its average daily net assets. The Advisor has contractually agreed to a fee waiver equal to 0.05% of its average net assets on the Treasury Series. The waiver is contractual and will continue until July 31, 2002 and may be extended. ICCC is the Fund's accounting and transfer agent. Each Series pays the accounting agent an annual fee based on its average daily net assets which is calculated daily and paid monthly. Each Series pays the transfer agent a per account fee that is accrued daily and paid monthly. Deutsche Bank Trust Company Americas (formerly, Bankers Trust Company), an affiliate of ICCC, is the Fund's custodian. The Fund pays the custodian an annual fee. Certain officers and directors of the Fund are also officers or directors of ICCC or affiliated with Deutsche Bank AG. These persons are not paid by the Funds for serving in these capacities. NOTE 3--OTHER FEES ICC Distributors, Inc. is the Fund's Distributor. Each Series pays the Distributor an annual fee, pursuant to Rule 12b-1, based on its average daily net assets, which is calculated daily and paid monthly at the following annual rates: 0.25% of the Prime Shares, Cash Reserve Prime Class A Shares, Treasury Shares and Tax-Free Shares average daily net assets, 0.60% of the Quality Cash Shares average daily net assets and 0.75% of the Cash Reserve Prime Class B Shares and Cash Reserve Prime Class C Shares average daily net assets. The Prime Series also pays the Distributor a shareholder servicing fee based on the average daily net assets of the Cash Reserve Prime Class B Shares and Cash Reserve Prime Class C Shares which is calculated daily and paid monthly at the annual rate of 0.25%. The Fund does not pay fees on the Prime Institutional Shares, Treasury Institutional Shares and Tax-Free Institutional Shares. The Prime Shares, Treasury Shares and Tax-Free Shares pay the Distributor a shareholder servicing fee, which is calculated daily and paid monthly at an annual rate of 0.07%. Prior to July 5, 2001, the fee was 0.05%. The Distributor uses this fee to compensate third parties that provide shareholder services to their clients who own shares. - -------------------------------------------------------------------------------- 47 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS NOTE 4--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 were as follows (at net asset value of $1.00 per share): For the For the Year Ended Year Ended March 31, 2002 March 31, 2001 -------------- -------------- Prime Series: Sold: Prime Shares ............. 21,051,181,674 34,781,774,664 Cash Reserve Prime Class A Shares ......... 68,264,960 369,574,242 Cash Reserve Prime Class B Shares ......... 9,355,858 21,570,678 Cash Reserve Prime Class C Shares ......... 2,927,624 3,611,704 Prime Institutional Shares 10,881,071,233 14,248,970,131 Quality Cash Shares ...... 115,428,366 265,504,692 --------------- --------------- 32,128,229,715 49,691,006,111 Reinvested: Prime Shares ............. 132,472,386 300,567,137 Cash Reserve Prime Class A Shares ......... 254,852 538,430 Cash Reserve Prime Class B Shares ......... 217,077 238,869 Cash Reserve Prime Class C Shares ......... 20,583 29,796 Prime Institutional Shares 25,874,526 36,273,237 Quality Cash Shares ...... 955,887 3,004,615 --------------- --------------- 159,795,311 340,652,084 Redeemed: Prime Shares ............. (22,598,854,964) (35,119,236,863) Cash Reserve Prime Class A Shares ......... (68,877,650) (374,445,652) Cash Reserve Prime Class B Shares ......... (10,787,574) (12,814,093) Cash Reserve Prime Class C Shares ......... (3,860,866) (2,828,014) Prime Institutional Shares (10,828,399,912) (14,251,483,991) Quality Cash Shares ...... (130,607,180) (293,198,986) --------------- --------------- (33,641,388,146) (50,054,007,599) --------------- --------------- Net decrease ............. (1,353,363,120) (22,349,404) =============== =============== For the For the Year Ended Year Ended March 31, 2002 March 31, 2001 -------------- -------------- Treasury Series: Sold: Treasury Shares .......... 3,121,248,003 3,677,787,028 Treasury Institutional Shares .................. 433,291,344 385,939,001 --------------- --------------- 3,554,539,347 4,063,726,029 Reinvested: Treasury Shares .......... 20,418,516 38,058,744 Treasury Institutional Shares .................. 2,218,302 4,876,482 --------------- --------------- 22,636,818 42,935,226 Redeemed: Treasury Shares .......... (3,262,540,090) (3,639,786,293) Treasury Institutional Shares .................. (373,099,709) (351,967,120) --------------- --------------- (3,635,639,799) (3,991,753,413) --------------- --------------- Net increase (decrease) .. (58,463,634) 114,907,842 --------------- --------------- --------------- --------------- For the For the Year Ended Year Ended March 31, 2002 March 31, 2001 -------------- --------------- Tax-Free Series: Sold: Tax-Free Shares .......... 5,679,020,822 8,121,541,625 Tax-Free Institutional Shares .................. 604,435,952 690,664,460 --------------- --------------- 6,283,456,774 8,812,206,085 Reinvested: Tax-Free Shares .......... 22,456,909 47,981,098 Tax-Free Institutional Shares .................. 1,775,841 2,348,888 --------------- --------------- 24,232,750 50,329,986 Redeemed: Tax-Free Shares .......... (6,396,875,049) (8,132,076,139) Tax-Free Institutional Shares .................. (612,038,771) (636,512,570) --------------- --------------- (7,008,913,820) (8,768,588,709) --------------- --------------- Net increase (decrease) .. (701,224,296) 93,947,362 =============== =============== - -------------------------------------------------------------------------------- 48 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS NOTE 5--FEDERAL INCOME TAXES At March 31, 2002, capital contributions, accumulated undistributed net investment income, and accumulated net realized gain (loss) from investments have been adjusted for current period permanent book/tax differences which arose principally from distribution reclassifications. These reclassifications resulted in the following increases/(decreases) in the components of net assets: Undistributed Undistributed Net Realized Paid-in Net Investment Income Gain/(Loss) Capital --------------------- ------------- ------- Cash Reserve-- Prime Series $ 73,733 $ (73,732) $ (1) Cash Reserve-- Treasury Series $149,889 $(149,889) -- Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from Generally Accepted Accounting Principles. Distributions during the year ended March 31, 2002 were characterized as follows for tax purposes: Cash Reserve--Prime Series Ordinary income $164,827,939 Cash Reserve--Treasury Series Ordinary income $ 24,815,619 Cash Reserve--Tax Free Series Tax exempt income $ 26,384,883 Ordinary income $ 243 At March 31, 2002, the components of distributable earnings on a tax basis were as follows: Cash Reserve--Prime Series Undistributed ordinary income $ 1,137,198 Cash Reserve--Treasury Series Undistributed ordinary income $ 412,045 Cash Reserve--Tax Free Series Undistributed tax exempt income $ 95,408 Undistributed ordinary income $ 13 Capital loss carryovers $ (62,554) At March 31, 2002, the Cash Reserve--Tax Free Series had capital loss carryovers available as a reduction against future net realized capital gains that consisted of $62,554, of which $42,197 expires in 2008 and $20,357 expires in 2009. At March 31, 2002, the Cash Reserve--Prime Series deferred post-October losses of $31,960 to the next fiscal year ending March 31, 2003. NOTE 6--SUBSEQUENT EVENTS On April 5, 2002, the Fund changed its name to Deutsche Bank Alex. Brown Cash Reserve Fund, Inc. As a result, certain classes of the Fund have changed their names. This change will result in modifications to the presentation of the Fund's periodic reports on behalf of certain classes of the Fund. - -------------------------------------------------------------------------------- 49 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Directors of Deutsche Bank Alex. Brown Cash Reserve Fund, Inc. and Shareholders of the Prime, Treasury and Tax-Free Series: In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Prime, Treasury and Tax-Free Series (the three portfolios constituting the Deutsche Bank Alex. Brown Cash Reserve Fund, Inc., hereafter referred to as the 'Funds') at March 31, 2002, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the fiscal periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as 'financial statements') are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at March 31, 2002 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Baltimore, Maryland May 3, 2002 - -------------------------------------------------------------------------------- TAX INFORMATION (Unaudited) For theYear Ended March 31, 2002 PRIME SERIES Of ordinary dividends made during the fiscal year ended March 31, 2002, 1.27% has been derived from investments in US Treasury and other direct US Government Obligations. All or a part of the distributions from this income may be exempt from taxation at the state level. Consult your tax advisor for state specific information. TREASURY SERIES One hundred percent of the ordinary dividends made by the Treasury Series of Deutsche Bank Alex. Brown Cash Reserve Fund, Inc. for the year ended March 31, 2002 were derived from interest on investments in direct obligations of the US Treasury. TAX-FREE SERIES One hundred percent of the dividends paid by the Tax-Free Series of Deutsche Bank Alex. Brown Cash Reserve Fund, Inc., for the year ended March 31, 2002 qualified as exempt-interest dividends for federal income tax purposes. All or a part of the distributions from this income may be exempt from taxation at the state level. Consult your tax advisor for state specific information. - -------------------------------------------------------------------------------- 50 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- FUND DIRECTORS AND OFFICERS
NUMBER OF FUNDS IN THE FUND NAME, BIRTH DATE AND BUSINESS EXPERIENCE AND COMPLEX OVERSEEN POSITION WITH THE FUND(1) DIRECTORSHIPS DURING THE PAST 5 YEARS BY DIRECTOR(2) - ---------------------------------------------------------------------------------------------------------------- INDEPENDENT DIRECTORS - ---------------------------------------------------------------------------------------------------------------- Richard R. Burt Chairman, IEP Advisors, Inc. (July 1998 to present); 25 February 3, 1947 Chairman of the Board, Weirton Steel Corporation (April Director since 1999. 1996 to present); Member of the Board, Hollinger International, Inc. (publishing) (1995 to present), and HCL Technologies Limited (information technology) (April 1999 to present), Director, UBS Mutual Funds (formerly known as Brinson and Mitchell Hutchins families of funds) (registered investment companies) (1995 to present); and Member, Textron Inc. International Advisory Council (July 1996 to present). Formerly, Partner, McKinsey & Company (consulting) (1991-1994); Member of the Board, Homestake Mining (mining and exploration) (1998-February 2001), Arch Daniels Midland Company (agribusiness operations) (October 1996-June 2001) and Anchor Gaming (gaming software and equipment) (March 1999-December 2001); and US Chief Negotiator in Strategic Arms Reduction Talks (START) with former Soviet Union and US Ambassador to the Federal Republic of Germany (1985-1991). - ---------------------------------------------------------------------------------------------------------------- Joseph R. Hardiman Private Equity Investor (1997 to present); Director, 23 May 27, 1937 Soundview Technology Group Inc. (investment banking) Director since 1998. (July 1998 to present), Corvis Corporation, (optical networks) (July 2000 to present), The Nevis Fund (registered investment company) (July 1999 to present), Brown Investment Advisory & Trust Company (February 2001 to present) and ISI Family of Funds (registered investment companies) (March 1998 to present). Formerly, Director, Circon Corp. (medical instruments) (November 1998-January 1999); President and Chief Executive Officer, The National Association of Securities Dealers, Inc. and The NASDAQ Stock Market, Inc., (1987-1997); Director, Flag Investors Emerging Growth Fund, Inc. (now known as Emerging Growth Fund, Inc.) and Flag Investors Short-Intermediate Income Fund, Inc. (now known as Short-Intermediate Income Fund, Inc.) (registered investment companies) (resigned 2000);Chief Operating Officer of Alex. Brown & Sons Incorporated (now Deutsche Bank Securities Inc.) (1985-1987) and General Partner, Alex. Brown & Sons Incorporated (now Deutsche Bank Securities Inc.), (1976-1985). - ----------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 51 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- FUND DIRECTORS AND OFFICERS
NUMBER OF FUNDS IN THE FUND NAME, BIRTH DATE AND BUSINESS EXPERIENCE AND COMPLEX OVERSEEN POSITION WITH THE FUND(1) DIRECTORSHIPS DURING THE PAST 5 YEARS BY DIRECTOR(2) - ---------------------------------------------------------------------------------------------------------------- INDEPENDENT DIRECTORS - ---------------------------------------------------------------------------------------------------------------- Louis E. Levy Director, Household International (banking and finance) 25 November 16, 1932 (1992 to present) and ISI Family of Funds (registered Director since 1994. investment companies) (1994 to present). Formerly, Chairman of the Quality Control Inquiry Committee, American Institute of Certified Public Accountants (1992-1998); Trustee, Merrill Lynch Funds for Institutions (1991-1993); Adjunct Professor, Columbia University-Graduate School of Business (1991-1992); Director, Kimberly-Clark Corporation (personal consumer products) (retired 2000) and Partner, KPMG Peat Marwick (retired 1990). - ---------------------------------------------------------------------------------------------------------------- Eugene J. McDonald Executive Vice President, Investment Counsel, Duke 25 July 14, 1932 University (September 2000 to present); Advisory Board Director since 1995. Member, A.M. Pappas & Associates (life sciences industry) (2000 to present) and Ashford Capital Management (2000 to present); Committee Member, North Carolina Treasurer's Office Investment Advisory Committee (2001 to present); Director, Victory Funds (registered investment companies) (April 1993 to present); Lead Director, National Commerce Bank Corporation (NCBC) (banking) (July 2000 to present); Principal and Chief Investment Officer, Quellos Private Capital Markets, LLC (investments) (September 2001 to present); Director, RedHat, Inc. (software) (July 2000 to present) and Incara Pharmaceuticals (June 2001 to present). Formerly, Chairman, Winston Hedged Equity Group (July 2000-August 2001); Executive Vice Chairman and Director, Central Carolina Bank & Trust (banking) (January 1998-July 2000); Director, AMBAC Treasurers Trust (registered investment company) (July 1996-August 1997), DP Mann Holdings (insurance) (December 1996-December 1998), ISI Family of Funds (registered investment companies) (1992-1999); President, Duke Management Company (investments) (July 1990-September 2000) and Executive Vice President, Duke University (education, research and health care) (July 1984-September 2000). - ---------------------------------------------------------------------------------------------------------------- Rebecca W. Rimel President and Chief Executive Officer, The Pew 25 April 10, 1951 Charitable Trusts (charitable foundation) (1994 to Director since 1995. present) and Director and Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1994 to present). Formerly, Executive Director, The Pew Charitable Trusts (1988-1994) and Director, ISI Family of Funds (registered investment companies) (1997-1999). - ----------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 52 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- FUND DIRECTORS AND OFFICERS
NUMBER OF FUNDS IN THE FUND NAME, BIRTH DATE AND BUSINESS EXPERIENCE AND COMPLEX OVERSEEN POSITION WITH THE FUND(1) DIRECTORSHIPS DURING THE PAST 5 YEARS BY DIRECTOR(2) - ---------------------------------------------------------------------------------------------------------------- INDEPENDENT DIRECTORS - ---------------------------------------------------------------------------------------------------------------- Carl W. Vogt of Counsel Fulbright & Jaworski, L.L.P (law) (2002 to 25 April 20, 1936 present); Director, Yellow Corporation (trucking) (1996 Director since 1995. to present), American Science & Engineering (x-ray detection equipment) (1997 to present) and ISI Family of Funds (registered investment companies) (1999 to present). Formerly, Chairman and Member, National Transportation Safety Board (1992-1994); Director, National Railroad Passenger Corporation (Amtrak) (1991-1992); Member, Aviation System Capacity Advisory Committee (Federal Aviation Administration); President (interim) of Williams College (1999-2000); President, certain funds in the Deutsche Asset Management Family of Funds (formerly, Flag Investors Family of Funds) (registered investment companies) (1999-2000); and Senior Partner, Fulbright & Jaworski L.L.P. (law), retired December 31, 2001. - ---------------------------------------------------------------------------------------------------------------- Robert H. Wadsworth President, Robert H. Wadsworth Associates, Inc. 25 January 29, 1940 (consulting firm) (1982 to present), President and Director since 1999. Trustee, Trust for Investment Managers (registered investment company) (1999 to present); Director, The Germany Fund Inc. (1986 to present), The New Germany Fund, Inc. (1992 to present) and Central European Equity Fund, Inc. (1986 to present). Formerly President, Investment Company Administration, L.L.C. (1992*-July 2001); President, Treasurer and Director, First Fund Distributors, Inc. (1990-January 2002); Vice President, Professionally Managed Portfolios (1999-2002) and Advisors Series Trust (1997-2002)(registered investment companies); President, Guinness Flight Investment Funds, Inc. (registered investment companies) (1994-1998). * This is the inception date of the corporation, which was the predecessor to the LLC. - ---------------------------------------------------------------------------------------------------------------- INTERESTED DIRECTORS - ---------------------------------------------------------------------------------------------------------------- Richard T. Hale(3) Managing Director, Deutsche Bank Securities Inc. 52 July 17, 1945 (formerly Deutsche Bank Alex. Brown Inc.) (June 1999 to Director since 1989. present) and Deutsche Asset Management Americas (June 1999 to present); Director and President, Investment Company Capital Corp. (registered investment advisor) (April 1996 to present) and Deutsche Asset Management Mutual Funds (1989 to present); Director, Deutsche Global Funds, Ltd. (January 2000 to present), CABEI Fund (June 2000 to present) and North American Income Fund (September 2000 to present); Vice President, Deutsche Asset Management, Inc. (September 2000 to present). Chartered Financial Analyst. Formerly, Director, ISI Family of Funds (registered investment companies) (1992-1999). - ----------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 53 Deutsche Bank Alex. Brown Cash Reserve Fund - -------------------------------------------------------------------------------- FUND TRUSTEES ANDOFFICERS
NUMBER OF FUNDS IN THE FUND NAME, BIRTH DATE AND BUSINESS EXPERIENCE AND COMPLEX OVERSEEN POSITION WITH THE FUND(1) DIRECTORSHIPS DURING THE PAST 5 YEARS BY DIRECTOR(2) - ---------------------------------------------------------------------------------------------------------------- INTERESTED DIRECTORS - ---------------------------------------------------------------------------------------------------------------- Truman T. Semans(3) Vice Chairman, Brown Investment Advisory & Trust 25 October 27, 1926 Company (1993 to present); Director and Chairman, Director since 1995. Virginia Hot Springs, Inc. (property management) (1991 to present) and Director of Upstate (biotechnology) (1994 to present). Formerly, Managing Director and Vice Chairman, Alex. Brown & Sons Incorporated (Deutsche Bank Securities Inc.) (1974-1998); Director, Investment Company Capital Corp. (registered investment advisor) (1996-2000) and Director, ISI Family of Funds (registered investment companies) (1997-1999). - ---------------------------------------------------------------------------------------------------------------- NAME, BIRTH DATE AND POSITION WITH THE TRUST AND BUSINESS EXPERIENCE AND THE PORTFOLIO TRUST DIRECTORSHIPS DURING THE PAST 5 YEARS - ---------------------------------------------------------------------------------------------------------------- OFFICERS - ---------------------------------------------------------------------------------------------------------------- Richard T. Hale See information provided under Interested Directors. President since 2000. - ---------------------------------------------------------------------------------------------------------------- Amy Olmert Director, Deutsche Asset Management and Certified Public Secretary since 1997. Accountant. Formerly, Vice President, BT Alex. Brown Incorporated May 14, 1963 (Deutsche Bank Securities Inc.) (1997-1999) and Senior Manager and other positions, Coopers & Lybrand L.L.P. (PricewaterhouseCoopers LLP) (1988-1997). - ---------------------------------------------------------------------------------------------------------------- Daniel O. Hirsch Managing Director, Deutsche Asset Management (2002 to present), Assistant Secretary and Director, Deutsche Global Funds, Ltd. (2002 to present). since 1999. Formerly, Director, Deutsche Asset Management (1999-2002) March 27, 1954 Principal, BT Alex. Brown Incorporated (Deutsche Bank Securities Inc.) (1998-1999) and Assistant General Counsel, United States Securities and Exchange Commission (1993-1998). - ---------------------------------------------------------------------------------------------------------------- Charles A. Rizzo Director, Deutsche Asset Management (April 2000 to present); Treasurer since 1999. Certified Public Accountant and Certified Management Accountant. August 5, 1957 Formerly, Vice President and Department Head, BT Alex. Brown Incorporated (Deutsche Bank Securities Inc.) (1998-1999) and Senior Manager, Coopers & Lybrand L.L.P. (PricewaterhouseCoopers LLP) (1993-1998). - ----------------------------------------------------------------------------------------------------------------
1 The mailing address of each Director and Officer with respect to Fund operations is One South Street, Baltimore, MD 21202. 2 As of March 31, 2002 the total number of Deutsche Asset Management funds (the 'Fund Complex') was 71. 3 Messrs. Semans and Hale are directors/trustees who are 'Interested Persons' within the meaning of Section 2(a)(19) of the 1940 Act. Mr. Hale is the President and a Director of the Fund's Advisor and a Managing Director of Deutsche Asset Management, the US asset management unit of Deutsche Bank and its affiliates. Mr. Semans is Vice Chairman of Brown Investment Advisory & Trust Company, an affiliate of Brown Advisory Incorporated, the sub-advisor to two Funds in the Fund Complex. The Fund's Statement of Additional Information includes additional information about the Fund's Directors. To receive your free copy of the Statement of Additional Information, call toll-free: 1-800-730-1313. - -------------------------------------------------------------------------------- 54 Deutsche Bank Alex. Brown Cash PRSRTSTD Reserve Fund U.S. Postage P.O. Box 1346 PAID Baltimore, MD 21203 Lancaster, PA Permit No. 1793 Printed (05/02) -----END PRIVACY-ENHANCED MESSAGE-----