497 1 pro_saistkr-266.htm MONEY FUND STICKER

SUPPLEMENT TO THE CURRENTLY EFFECTIVE PROSPECTUSES, SUMMARY PROSPECTUSES AND STATEMENTS OF ADDITIONAL INFORMATION OF EACH OF THE LISTED FUNDS

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Cash Account Trust

Tax-Exempt Portfolio

Daily Assets Fund

Deutsche Money Market Prime Series

Deutsche Variable NAV Money Fund

 

 

In July of 2014, the Securities and Exchange Commission (“SEC”) adopted money market fund reforms that impact the operation of registered money market funds, including the funds. The funds are required to comply with money market fund reforms by the specified compliance dates, with the latest being October 14, 2016 (the “Compliance Date).

 

Under the money market fund reforms, registered money market funds that qualify as “retail money market funds” and “government money market funds” will be permitted to continue to utilize the “amortized cost” method of valuation to seek to transact at a stable net asset value per share (“NAV”) on or after the Compliance Date. A “retail money market fund” is defined under the money market fund reforms as a fund that has policies and procedures reasonably designed to limit all beneficial owners of the fund to natural persons.

 

Registered money market funds that do not qualify as retail money market funds or government money market funds (collectively, “institutional money market funds”) would be required to price and transact in their shares at a floating NAV reflecting current market values for their portfolio securities on or before the Compliance Date. The Deutsche Variable NAV Money Fund currently processes and transacts in its shares at a floating NAV calculated at 4 p.m. each day that the fund is open for business.

 

Retail money market funds and institutional money market funds must also implement policies and procedures reasonably designed to ensure the funds will be able to impose liquidity fees on redemptions and/or redemption gates suspending redemptions under certain limited circumstances and subject to the actions of the fund’s Board by the Compliance Date.

 

On or prior to the Compliance Date, each fund and all its share classes will qualify as either a retail money market fund or institutional money market fund as follows:

 

Fund Type Stable NAV Permitted Implementation of Liquidity Fees and/or Redemption Gates
Deutsche Money Market Prime Series Retail Money Market Fund Yes Yes
Cash Account Trust: Tax-Exempt Portfolio Retail Money Market Fund Yes Yes
Daily Assets Fund Institutional Money Market Fund No Yes
Deutsche Variable NAV Money Fund Institutional Money Market Fund No Yes

 

Deutsche Retail Money Market Funds

 

On or about September 16, 2016, Deutsche Money Market Prime Series and Tax-Exempt Portfolio of Cash Account Trust (the “Deutsche Retail MMFs”) will implement policies and procedures that are reasonably designed to limit beneficial ownership of each fund’s shares to natural persons. On such date, only accounts beneficially owned by natural persons will be permitted to retain their shares in each Deutsche Retail MMF.

Each Deutsche Retail MMF will continue to operate with its existing investment objective and investment strategies

and will continue to seek to maintain a $1.00 stable NAV. (Although each fund will seek to maintain a $1.00 NAV,

 

June 15, 2016

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there is no guarantee that it will be able to do so and if the NAV falls below $1.00, you would lose money.) In addition, each Deutsche Retail MMF will be required to be able to implement liquidity fees and/or redemption gates by the Compliance Date.

 

Natural persons may invest, or continue to invest, in a Deutsche Retail MMF directly or through certain tax-advantaged savings accounts, trusts and other retirement accounts, which may include participant directed defined contribution plans, individual retirement accounts, simplified employee pension arrangements, simple retirement accounts, custodial accounts, deferred compensation plans, medical savings accounts, college savings plans, health savings account plans, or certain other accounts where the ultimate decision maker is an institution (e.g., an investment adviser managing discretionary investment accounts for natural persons or a plan sponsor of a retirement account).

 

In order to separate eligible investors within the funds, the Board of each Deutsche Retail MMF, on the recommendation of Deutsche Investment Management Americas Inc. (“DIMA”), approved the closing of each Deutsche Retail MMF to new investors that are not natural persons effective on or about July 1, 2016.

 

On or about September 15, 2016, financial intermediaries will be required to take steps to remove any shareholders on behalf of whom they hold shares in a Deutsche Retail MMF that are not eligible to be invested in the fund. Financial intermediaries will also be required to provide the funds a written statement or other representation that they have in place, and operate in compliance with, policies and procedures that are reasonably designed to limit beneficial ownership of the funds to natural persons. Financial intermediaries will not be permitted to submit purchase orders if they have not provided such a written statement or representation.

 

In order to ensure that the Deutsche Retail MMFs are beneficially owned by natural persons, each fund may redeem investors that do not satisfy the eligibility requirements of the Deutsche Retail MMFs. Each Deutsche Retail MMF will provide advanced written notice of its intent to make any such involuntary redemptions. Effective on or about September 15, 2016, the Deutsche Retail MMFs may involuntarily redeem shares in accounts if Deutsche Retail MMF does not believe that the account is beneficially owned by a natural person.

 

In addition, the share class of Tax Exempt Portfolio noted below will change its name effective on or about July 1, 2016 as follows:

 

Current Share Class Name

New Share Class Name

(Effective on or About July 1, 2016)

 

Deutsche Tax-Exempt Cash Institutional Shares Deutsche Tax-Exempt Cash Premier Shares

 

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A summary of the key dates and events for the Deutsche Retail MMFs is set forth below:

 

·Effective on or about July 1, 2016:

 

oThe Deutsche Retail MMFs will not open any new account of which the beneficial owner is not a natural person.
oThe “Deutsche Tax-Exempt Cash Institutional Shares” class of Tax-Exempt Portfolio will change its name to “Deutsche Tax-Exempt Cash Premier Shares.”

 

·Effective on or about September 15, 2016:

 

oThe Deutsche Retail MMFs may involuntarily redeem shares in accounts if the Deutsche Retail MMF does not believe that the account is beneficially owned by a natural person.
oFinancial intermediaries will be required to take steps to remove any shareholders on behalf of whom they hold shares in a Deutsche Retail MMF that are not eligible to be invested in the fund.
oFinancial intermediaries will be required to have provided the Deutsche Retail MMFs with a written statement or other representation that they have in place, and operate in compliance with, policies and procedures that are reasonably designed to limit beneficial ownership of the funds to natural persons.
oFinancial intermediaries will not be permitted to submit purchase orders if they have not provided such a written statement or representation.

 

·Effective on or about September 16, 2016:

 

oThe Deutsche Retail MMFs will implement policies and procedures that are reasonably designed to limit beneficial ownership of each fund’s shares to natural persons.

 

·Effective on or about October 14, 2016:

 

oThe Deutsche Retail MMFs will implement policies and procedures reasonably designed to ensure the funds will be able to impose liquidity fees on redemptions and/or redemption gates suspending redemptions under certain limited circumstances and subject to the actions of the fund’s Board.

 

Deutsche Institutional Money Market Funds

 

Under the money market fund reforms, all investors, including natural persons, that meet the eligibility requirements may purchase shares of Daily Assets Fund and Deutsche Variable NAV Money Fund (the “Deutsche Institutional MMFs”), but the funds will be required to price and transact in their shares at a floating NAV to four decimal places in the case of a fund with a $1.00 target share price (e.g., $1.0000) or an equivalent or more precise level of accuracy for funds with a different share price (e.g., a fund that has a target share price of $10.00 could price its share at $10.000) reflecting current market values for their portfolio securities on or before the Compliance Date. Currently, the Deutsche Variable NAV Money Fund transacts in its shares at a floating NAV calculated at 4 p.m. each business day. DIMA currently expects that the Daily Assets Fund will transition to a floating NAV on or about October 10, 2016. As a result, Daily Assets Fund will begin to value its portfolio securities using market based factors and will no longer use the “amortized cost” method of valuation effective on or about October 10, 2016.

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In order to provide shareholders with liquidity multiple times per day, DIMA recommended, and the Board of each fund approved, that the NAV for each class of the Deutsche Institutional MMFs be calculated, effective on or about October 10, 2016, as of the following times each day that the fund is open for business:

 

Fund Current NAV Calculation Time New NAV Calculation Times (Effective on or about October 10, 2016)
Deutsche Variable NAV Money Fund 4:00 p.m.

9:00 a.m.;

12:00 p.m.;

3:00 p.m.; and

5:00 p.m.

Daily Assets Fund 5:00 p.m.

9:00 a.m.;

12:00 p.m.;

3:00 p.m.; and

5:00 p.m.

 

Until such date, the Daily Assets Fund will continue to seek to maintain a stable $1.00 NAV using the amortized cost method to value its portfolio securities. (Although the fund will seek to maintain a $1.00 NAV, there is no guarantee that it will be able to do so and if the NAV falls below $1.00, you would lose money.) Additionally, Deutsche Variable NAV Money Fund will continue to process and transact in its shares at a floating NAV calculated once each business day reflecting current market values for its portfolio securities.

 

Processing of Trade Orders

 

All purchase, redemption and exchange orders must be received in good order and will generally be priced at the NAV next calculated after it is received in good order.

 

If a wire transfer purchase order is received in good order for before 9:00 a.m., 12:00 p.m. or 3:00 p.m. Eastern time, it will normally receive the dividend for that day. Purchase orders processed at 5:00 p.m. Eastern time will not receive the dividend for that day. Redemption orders processed at 9:00 a.m., 12:00 p.m. or 3:00 p.m. will not be entitled to that day’s dividend. However, redemption orders processed at 5:00 p.m. will be entitled to the same day dividend.

 

A summary of the key dates and events for the Deutsche Institutional MMFs is set forth below:

 

·Effective on or about October 10, 2016:

 

oDaily Assets Fund will transition it share price from a stable NAV of $1.00 to a floating NAV.
oDaily Assets Fund will begin to use market based factors and will no longer use the “amortized cost” method of valuation to value its portfolio securities.
oEach Deutsche Institutional MMF will calculate its NAV multiple times each day that the fund is open for business (typically, 9:00 a.m., 12:00 p.m., 3:00 p.m., and 5:00 p.m.).

 

·Effective on or about October 14, 2016:

 

oThe Deutsche Institutional MMFs will implement policies and procedures reasonably designed to ensure the funds will be able to impose liquidity fees on redemptions and/or redemption gates suspending redemptions under certain limited circumstances and subject to the actions of the fund’s Board.

 

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Liquidity Fees and Redemption Gates

 

Effective on or about October 14, 2016, if a Deutsche Retail MMF’s or Deutsche Institutional MMF’s weekly liquid assets fall below 30%, the Board of the fund may, in its discretion, impose a liquidity fee of up to 2% of the value of the shares redeemed and/or put on a gate to temporarily suspend redemptions. In addition, if a Deutsche Retail MMF’s or Deutsche Institutional MMF’s weekly liquid assets fall below 10%, the fund must impose a liquidity fee of 1% of the value of the shares redeemed, unless the Board of the fund determines that not doing so is in the best interest of the Fund. Weekly liquid assets include (i) cash, (ii) direct obligations of the U.S. Government, (iii) Government securities that are issued by a person controlled or supervised by and acting as an instrumentality of the U.S. Government pursuant to authority granted by Congress that are issued at a discount to the principal amount to be repaid at maturity without provision for the payment of interest and have a remaining maturity date of 60 days or less, (iv) securities that will mature or are subject to a demand feature that is exercisable and payable within five business days, or (v) amounts receivable and due unconditionally within five business days on pending sales of portfolio securities.

 

A liquidity fee or redemption gate must automatically terminate at the beginning of the next business day once a fund’s weekly liquid assets reach at least 30% of its total assets. Additionally, redemption gates may only be put in place for up to 10 business days in any 90-day period. In addition, the Board may, in its discretion, terminate a liquidity fee or redemption gate at any time if it believes such action to be in the best interest of the fund.

 

To the extent a fund implements a liquidity fee, it is currently expected that the liquidity fee would generally apply to all redemptions at the first net asset value calculation on the next business day following notification to financial intermediaries and shareholders. However, the Board, in its discretion, may elect to impose a liquidity fee on an intra-day basis. A liquidity fee will be charged on all redemption orders submitted after the effective time of the imposition of the fee by the Board. A liquidity fee would reduce the amount you receive upon redemption of your shares.

 

In the event that a fund imposes a redemption gate, the fund or any financial intermediary will not accept a redemption request until the fund provides notice that the redemption gate has been removed. It is also currently expected that a redemption gate would be implemented concurrently with the notification to financial intermediaries and shareholders. Redemption requests that are received when a redemption gate is imposed will be cancelled without further notice. If you wish to redeem once the redemption gate has been lifted, you will need to submit a new redemption request.

 

When a liquidity fee or redemption gate is in place, a fund may elect to continue to permit the purchase of fund shares.

 

The imposition and termination of liquidity fees or redemption gates is required to be reported to the SEC on Form N-CR. In addition, a fund will communicate the decision to impose a liquidity fee or redemption gate to shareholders via the Deutsche Funds’ websites (dbadvisorsliquidity.com/US or deutschefunds.com) and through a supplement to the affected funds’ prospectuses.

 

 

Please Retain This Supplement for Future Reference

 

 

 

 

 

 

 

 

 

 

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