-----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, BLuZkH/liC5ONpueLXtsdxdq57godWu0pjx0D9qRHAWNwbVnxjDVoS638WWrz5AB oTXs0kN1CPsM54a8i6L4bA== 0001193125-03-043180.txt : 20030828 0001193125-03-043180.hdr.sgml : 20030828 20030828132821 ACCESSION NUMBER: 0001193125-03-043180 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030630 FILED AS OF DATE: 20030828 EFFECTIVENESS DATE: 20030828 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CDC NVEST TAX EXEMPT MONEY MARKET TRUST CENTRAL INDEX KEY: 0000714528 IRS NUMBER: 046485680 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-03658 FILM NUMBER: 03870434 BUSINESS ADDRESS: STREET 1: 501 BOYLSTON ST CITY: BOSTON STATE: MA ZIP: 02117 BUSINESS PHONE: 8002831155 MAIL ADDRESS: STREET 1: 399 BOYLSTON STREET CITY: BOSTON STATE: MA ZIP: 02116 FORMER COMPANY: FORMER CONFORMED NAME: NVEST TAX EXEMPT MONEY MARKET TRUST DATE OF NAME CHANGE: 20000202 FORMER COMPANY: FORMER CONFORMED NAME: NEW ENGLAND TAX EXEMPT MONEY MARKET TRUST DATE OF NAME CHANGE: 19920821 FORMER COMPANY: FORMER CONFORMED NAME: NEL TAX EXEMPT MONEY MARKET TRUST DATE OF NAME CHANGE: 19860901 N-CSR 1 dncsr.txt CDC NVEST TAX EXEMPT MONEY MARKET TRUST UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number: 811-3658 CDC Nvest Tax Exempt Money Market Trust - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 399 Boylston Street, Boston, Massachusetts 02116 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) John E. Pelletier, Esq. CDC IXIS Asset Management Distributors, L.P. 399 Boylston Street Boston, Massachusetts 02116 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (617) 449-2801 Date of fiscal year end: June 30, 2003 Date of reporting period: June 30, 2003 Item 1. Reports to Stockholders. The Registrant's annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows: [LOGO OF CDC NVEST FUNDS(SM)] CDC IXIS Asset Management Distributors [GRAPHIC APPEARS HERE] Money Market Funds Annual Report June 30, 2003 CDC Nvest Cash Management Trust - Money Market Series Reich & Tang Asset Management CDC Nvest Tax Exempt Money Market Trust Reich & Tang Asset Management TABLE OF CONTENTS Management Discussion and Performance.................... Page 2 Schedule of Investments.............Page 4 Financial Statements................Page 6 Report of Independent Auditors...........................Page 14 Trustees' Information..............Page 15 CDC NVEST MONEY MARKET FUNDS Annualized Seven-Day Yields -- June 30, 2003 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Class A, B & C CDC Nvest Cash Management Trust -- Money Market Series 0.27% - -------------------------------------------------------------------------------- Class A & B CDC Nvest Tax Exempt Money Market Trust 0.10%* - -------------------------------------------------------------------------------- Yields will fluctuate with changes in market conditions. The seven-day money market yield reflects the funds' current earnings more closely than total return. * The advisor waived certain fund expenses. If these expenses had not been waived, the fund's seven-day yield would have been 0.04%. Average Annual Total Returns -- June 30, 2003 CDC NVEST CASH MANAGEMENT TRUST -- MONEY MARKET SERIES - -------------------------------------------------------------------------------- Class A (Inception 7/10/78) 1 Year 5 Years 10 Years Net Asset Value/1/ 0.76% 3.49% 3.96% - -------------------------------------------------------------------------------- Class B (Inception 9/13/93) 1 Year 5 Years Since Inception Net Asset Value/1/ 0.76% 3.49% 3.99% - -------------------------------------------------------------------------------- Class C (Inception 3/1/98) 1 Year 5 Years Since Inception Net Asset Value/1/ 0.76% 3.49% 3.59% - -------------------------------------------------------------------------------- CDC NVEST TAX EXEMPT MONEY MARKET TRUST - -------------------------------------------------------------------------------- Class A (Inception 4/21/83) 1 Year/2/ 5 Years/2/ 10 Years/2/ Net Asset Value/1/ 0.28% 2.05% 2.53% - -------------------------------------------------------------------------------- Class B (Inception 9/13/93) 1 Year/2/ 5 Years/2/ Since Inception/2/ Net Asset Value/1/ 0.28% 2.05% 2.57% - -------------------------------------------------------------------------------- /1/ These returns include reinvestment of distributions, represent past performance and do not predict future results. /2/ The advisor waived certain fees during the period indicated, and the fund's average annual returns would have been lower if these fees had not been waived. These two funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although both funds seek to maintain a constant share price of $1.00, it is possible to lose money by investing in them.
CDC NVEST CASH MANAGEMENT TRUST - MONEY MARKET SERIES CDC NVEST TAX EXEMPT MONEY MARKET TRUST - ---------------------------------------------------------------------------------------------------------------------- Objective: Objective: Seeks maximum current income consistent with Seeks current income exempt from federal income taxes preservation of capital and liquidity. consistent with preservation of capital and liquidity. - ---------------------------------------------------------------------------------------------------------------------- Strategy: Strategy: Invests primarily in high-quality, short-term, Focuses on high-quality, short-term, U.S. municipal money U.S. and dollar-denominated foreign money market market investments that pay interest exempt from federal investments. income tax. - ---------------------------------------------------------------------------------------------------------------------- Manager: Manager: Molly J. Flewharty, Molly J. Flewharty, Reich & Tang Asset Management Reich & Tang Asset Management
1 CDC NVEST MONEY MARKET FUNDS CDC NVEST CASH MANAGEMENT TRUST MANAGEMENT DISCUSSION - -------------------------------------------------------------------------------- Short-term interest rates generally remained at historic lows throughout CDC Nvest Cash Management Trust's fiscal year, which ended June 30, 2003. Although this resulted in low yields, money market funds continue to offer a combination of relative stability and easy access to cash that have made them a basic tool for many investors. Throughout the 12-month period, the fund maintained a constant price of $1.00 per share and provided a total return of 0.76%, based on the net asset value of Class A shares and $0.0076 per share in reinvested dividends. The fund's seven-day SEC yield as of the end of June was 0.27%. Two cuts in 12 months leave interest rates at 45-year lows At the beginning of the fund's fiscal year in July of 2002, the economy was sluggish and investors were alert to the possibility that the Federal Reserve Board might cut short-term interest rates in an effort to stimulate the economy. We extended the fund's average maturity early in the period to lock in yields for as long as possible. However, the Fed took no action until early November, when it lowered the Federal Funds Rate - the rate banks charge each other for overnight borrowing - by 0.50% to 1.25%. Short-term interest rates remained at that level throughout most of the period, but the economy failed to respond. In May, the economy seemed to be recovering from the reversal that occurred during the war in Iraq, but the Fed became increasingly concerned about the prospect of deflation. Deflation refers to a downward spiral in the price of goods and services brought about by decreasing demand, which can lead to increased unemployment and a stalled economy. Late in June, the Fed reduced interest rates again, this time by 0.25% to 1.00%. Managed maturities, commercial paper help maximize income We positioned the fund to generate as much income as possible given the low level of money market interest rates, keeping maturities on the longer side to lock in yields to the extent possible. During the past 12 months, the fund's average maturity ranged from 48 days in the fall of 2002 to 71 days in the spring of 2003, ending June at 64 days. Maturities shift every day as we buy and sell securities or as they mature. Throughout the period, commercial paper comprised the bulk of the portfolio because that's where value and yields were most attractive. During the first half of the fund's fiscal year, we also invested a portion of assets in U.S. government agency securities, seeking higher yields without sacrificing relative safety. However, when concerns arose about accounting procedures at Freddie Mac (a major player in the home-mortgage market), we again focused on quality, investing almost exclusively in commercial paper and bank notes. Fed expected to "wait and see" With the Fed's most recent rate cut in June, it seems unlikely that short-term interest rates will go much below current levels. In fact, most financial experts agree that the Fed is unlikely to lower the Federal Funds Rate below 0.75%. Although economists generally expect the combined stimulus of rate cuts and tax policies to have positive effects on the economy in the second half of 2003, unemployment numbers recently touched new highs for this cycle and current economic data show little progress. We believe the Fed will hold off for the time being, closely monitoring the health of the economy, and we expect to pursue the strategies we have used in the past 12 months, emphasizing high quality and keeping average maturities on the longer side. We will also strive to move quickly to take advantage of investment opportunities as they arise. 2 CDC NVEST MONEY MARKET FUNDS CDC NVEST TAX EXEMPT MONEY MARKET TRUST MANAGEMENT DISCUSSION - -------------------------------------------------------------------------------- The income available from money market investments slowed to a trickle during the 12 months ended June 30, 2003. However, CDC Nvest Tax Exempt Money Market Trust maintained a constant price of $1.00 per share throughout the period. The fund also provided a total return of 0.28%, based on the net asset value of Class A shares and $0.0028 per share in reinvested dividends. Its seven-day SEC yield as of the end of June was 0.10%, after the expense waiver. The fund's seven-day yield is equivalent to a taxable yield of 0.15%, based on the highest 2003 federal tax bracket of 35%. Interest rates steady at low levels Although short-term interest rates generally remained stable during the past 12 months, all eyes were on the Federal Reserve Board, waiting to see whether concerns about the economy and deflation would drive them to cut rates further. Deflation refers to a downward spiral in prices for goods and services brought about by decreasing demand, which can lead to increased unemployment and a stalled economy. However, the Fed remained on the sidelines until November of 2002, when it slashed the Federal Funds Rate - the rate banks charge each other for overnight borrowing - by 0.50% to 1.25%. Just days before the end of the fund's fiscal year, the Fed again lowered rates, this time by 0.25% to 1.00%, the lowest level in 45 years. Throughout the period, we adjusted the fund's average maturity to take advantage of rate fluctuations in the fixed-income market generally, as well as to capitalize on seasonal factors that are unique to the tax-exempt markets. During the past 12 months, the fund's average maturity ranged from 40 days in November of 2002 to 74 days in January of 2003. Maturities change daily as we buy and sell securities or as they mature. % OF NET ASSETS AS OF LARGEST STATES 6/30/03 12/31/02 - --------------------------------------------- Texas 22.9% 18.6% - --------------------------------------------- Florida 9.0 9.0 - --------------------------------------------- Hawaii 7.2 6.7 - --------------------------------------------- Wyoming 7.0 3.1 - --------------------------------------------- Illinois 6.6 6.2 - --------------------------------------------- Tennessee 6.6 10.4 Seasonal factors influenced supply / demand During any given year there are two periods of increased activity in the municipal bond markets: July and January. Because the fiscal year-end for most municipalities is June 30, the supply of newly issued, one-year, fixed-rate securities typically is high in late June. This means we are usually most active in the market at the start of the fund's fiscal year in July because the large increase in supply generally produces attractive yields. At the beginning of the fund's fiscal year last July, the supply of new issues was substantial, but the credit quality of many of the notes concerned us. Reflecting the stresses on the nation's economy, many states were in poor fiscal health and watching their budget deficits grow. Consequently, we focused on states and municipalities that were effectively managing their budget problems. Typically, each December shareholders of tax-exempt money market funds redeem shares to meet year-end tax payments or for other expenses. Since money market funds are the largest purchasers of variable-rate securities, demand for these securities drops off in December, sending prices lower and yields up. However, redemptions were down in December of 2002, resulting in only minor rate increases. During the second half of the fund's fiscal year, we were concerned that the sluggish economy might prompt the Fed to lower interest rates again, so we extended maturities to lock in yields, and then shortened again, in preparation for the next influx of new notes. The fund's average maturity at June 30, 2003 was 45 days. Interest rates expected to be flat or falling With its latest cut, the Fed signaled that interest rates would remain low for now, but the question remains whether that quarter-point rate cut will be enough. We believe the Fed will maintain a hands-off policy for the time being, closely monitoring the health of the economy. As specialists in money market investing, we will put our experience and buying power to work to benefit shareholders as opportunities present themselves. These two funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although both funds seek to maintain a constant share price of $1.00, it is possible to lose money by investing in them. The portfolio manager's commentary reflects the conditions and actions taken during the reporting period, which are subject to change. A shift in opinion may result in strategic and other portfolio changes. Some of CDC Nvest Tax Exempt Money Market Trust's income may be subject to federal and state taxes. Capital gains are fully taxable. Investors may be subject to the Alternative Minimum Tax (AMT). See the fund's prospectus for details. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE 3 CASH MANAGEMENT TRUST - MONEY MARKET SERIES Investments as of June 30, 2003 INVESTMENTS -- 99.8% OF TOTAL NET ASSETS
PRINCIPAL AMOUNT DESCRIPTION VALUE (a) - ----------------------------------------------------------------------------------------------------------------------- COMMERCIAL PAPER -- 71.9% AIRLINE -- 1.6% $ 7,585,000 New York City, NY, Industrial Development Agency, 1.000%, 7/01/2008 (c) ............ $ 7,585,000 -------------- ASSET-BACKED -- 16.3% 10,000,000 Market Street Funding Corp., 144A, 1.320%, 7/01/2003 ............................... 10,000,000 10,000,000 Greyhawk Funding LLC, 144A, 1.230%, 7/11/2003 ...................................... 9,996,583 10,000,000 Greyhawk Funding LLC, 144A, 0.950%, 7/15/2003 ...................................... 9,996,306 5,000,000 Fountain Square Commercial Funding Corp., 144A, 1.260%, 7/17/2003 .................. 4,997,200 5,000,000 Market Street Funding Corp., 144A, 1.180%, 7/25/2003 ............................... 4,996,067 10,000,000 Fountain Square Commercial Funding Corp., 144A, 1.220%, 8/04/2003 .................. 9,988,478 5,000,000 Govco, Inc., 144A, 1.210%, 8/08/2003 ............................................... 4,993,614 20,000,000 Special Purpose Accounts Receivable Cooperative Corp., 144A, 1.230%, 8/08/2003 ..... 19,974,033 -------------- 74,942,281 -------------- BANKING -- 13.9% 5,000,000 Societe Generale North America, 1.245%, 7/07/2003 .................................. 4,998,963 4,000,000 Alliance & Leicester PLC, 1.305%, 7/09/2003 ........................................ 3,998,840 10,000,000 Banco Bilbao Vizcaya Argentaria Puerto Rico, 1.250%, 7/17/2003 ..................... 9,994,444 10,000,000 Yorkshire Building Society, 1.220%, 7/21/2003 ...................................... 9,993,222 10,000,000 Alliance & Leicester PLC, 1.250%, 7/21/2003 ........................................ 9,993,055 5,000,000 Alliance & Leicester PLC, 1.270%, 7/21/2003 ........................................ 4,996,472 5,000,000 HBOS Treasury Services PLC, 1.230%, 7/31/2003 ...................................... 4,994,875 15,000,000 Banco Rio de la Plata SA, 0.970%, 3/18/2004 ........................................ 14,894,513 -------------- 63,864,384 -------------- BUILDING -- 7.5% 1,225,000 Shayeson-Huff Properties LLC, 1.250%, 11/01/2016 (c) ............................... 1,225,000 2,875,000 Cardiology Building Associates LLC, 1.150%, 10/01/2021 (c) ......................... 2,875,000 2,700,000 J&M LLC, 1.313%, 10/01/2026 (c) .................................................... 2,700,000 17,450,000 MOB Management Two LLC, 1.350%, 12/01/2026 (c) ..................................... 17,450,000 5,200,000 VWS McAdory Market LLC, 1.150%, 7/01/2027 (c) ...................................... 5,200,000 2,015,000 Daniel Land Co., 1.313%, 10/01/2027 (c) ............................................ 2,015,000 3,130,000 MOB Management One LLC, 1.350%, 12/01/2031 (c) ..................................... 3,130,000 -------------- 34,595,000 -------------- EDUCATION -- 6.3% 15,000,000 Board of Trustees of the Leland Stanford Junior University, 1.220%, 7/07/2003 ...... 14,996,950 5,000,000 Board of Trustees of the Leland Stanford Junior University, 1.030%, 9/10/2003 ...... 4,989,843 9,000,000 Yale University, 1.020%, 9/26/2003 ................................................. 8,977,815 -------------- 28,964,608 -------------- ELECTRIC UTILITIES -- 2.2% 10,000,000 AES Shady Point, Inc., 1.220%, 9/02/2003 ........................................... 9,978,650 -------------- FINANCIAL SERVICES -- 7.2% 5,000,000 UBS Finance (Delaware) LLC, 1.310%, 7/01/2003 ...................................... 5,000,000 10,000,000 Private Export Funding Corp., 1.220%, 7/22/2003 .................................... 9,992,883 5,000,000 CSN Overseas, 1.270%, 10/16/2003 ................................................... 4,981,126 5,000,000 Private Export Funding Corp., 1.120%, 11/13/2003 ................................... 4,979,000 2,425,000 SSK Co. LLC, 1.250%, 11/01/2021 (c) ................................................ 2,425,000 2,035,000 Jobs Co. (The) LLC, 1.313%, 2/01/2022 (c) .......................................... 2,035,000 3,430,000 Alpine Capital Investments LLC, 1.280%, 9/15/2027 (c) .............................. 3,430,000 -------------- 32,843,009 -------------- GOVERNMENT -- 2.2% 10,000,000 Mississippi, 1.640%, 12/01/2003 .................................................... 10,000,177 -------------- HEALTH CARE PROVIDERS -- 2.4% 11,000,000 Dean Health Systems, Inc., 1.150%, 7/15/2003 ....................................... 10,995,081 -------------- HOSPITAL -- 0.7% 3,130,000 Birmingham, AL, Special Care Facilities Financing Authority, 1.313%, 9/01/2018 (c) ..................................................................... 3,130,000 -------------- MULTI-FAMILY -- 4.2% 2,500,000 New York City, NY, Housing Development Corp., 1.020%, 1/15/2034 (c) ................ 2,500,000 2,100,000 Florida Housing Finance Corp., (Stuart Pointe Partners), 1.050%, 4/01/2034 (c) ..... 2,100,000 10,000,000 New York Housing Finance Agency, 1.020%, 11/01/2034 (c) ............................ 10,000,000 4,544,838 Los Angeles, CA, Community Redevelopment Agency, 1.100%, 12/15/2034 (c) ............ 4,544,838 -------------- 19,144,838 -------------- PUBLIC POWER/UTILITY -- 4.1% 19,000,000 New Jersey Economic Development Authority, 1.000%, 9/01/2021 (c) ................... 19,000,000 -------------- SINGLE-FAMILY -- 1.1% 5,000,000 Connecticut Housing Finance Authority, 1.050%, 5/15/2033 (c) ....................... 5,000,000 -------------- U.S. GOVERNMENT AGENCIES -- 2.2% 5,000,000 Student Loan Marketing Association, Medium Term Note, 2.600%, 7/02/2003 ............ 5,002,900 5,000,000 Federal Home Loan Mortgage Corp. Discount Notes, 1.170%, 3/25/2004 ................. 4,956,450 -------------- 9,959,350 -------------- Total Commercial Paper (Cost $330,002,378) ......................................... 330,002,378 -------------- BANK NOTE -- 2.2% 10,000,000 Bank of America NA, 1.230%, 7/10/2003 .............................................. 10,000,000 -------------- Total Bank Note (Cost 10,000,000) .................................................. 10,000,000 -------------- MEDIUM TERM NOTE -- 4.4% 15,000,000 Caterpillar Financial Services Corp., 1.370%, 7/09/2003 (c) ........................ 15,000,000 5,000,000 General Electric Capital Corp., Medium Term Note, 1.170%, 10/17/2003 (c) ........... 5,000,000 -------------- Total Medium Term Note (Cost $20,000,000) .......................................... 20,000,000 -------------- CERTIFICATES OF DEPOSIT -- 17.4% 10,000,000 Svenska Handelsbanken AB/NY, 1.200%, 8/22/2003 ..................................... 10,000,236 20,000,000 Toronto-Dominion Bank (The)/NY, 1.510%, 11/12/2003 ................................. 20,000,000 10,000,000 Credit Agricole Indosuez/NY, 1.050%, 1/16/2004 ..................................... 9,999,864 10,000,000 Rabobank Nederland NV/NY, 1.043%, 1/22/2004 (c) .................................... 10,000,000 10,000,000 Harris Trust & Savings Bank, 1.320%, 3/01/2004 ..................................... 9,999,667 10,000,000 Abbey National Treasury Services PLC, 1.040%, 3/08/2004 (c) ........................ 9,999,318 5,000,000 UBS AG (Stamford, CT), 1.095%, 3/15/2004 ........................................... 4,999,562 5,000,000 Credit Agricole Indosuez/NY, 1.310%, 4/15/2004 (c) ................................. 5,000,000 -------------- Total Certificates of Deposit (Cost $79,998,647) ................................... 79,998,647 -------------- TIME DEPOSITS -- 3.9% 17,900,000 BNP Paribas SA, 1.375%, 7/01/2003 .................................................. 17,900,000 -------------- Total Time Deposits (Cost $17,900,000) ............................................. 17,900,000 -------------- SHORT TERM INVESTMENT -- 0.0% 44,848 Repurchase Agreement with Investors Bank & Trust Co. dated 6/30/2003 at 0.75% to be repurchased at $44,849 on 7/01/2003, collateralized by $45,409 Government National Mortgage Association Bond, 5.375%, due 4/20/2024 valued at $47,090 ....................................................... 44,848 -------------- Total Short Term Investment (Cost $44,848) ......................................... 44,848 -------------- Total Investments -- 99.8% (Identified Cost $457,945,873) (b) .................... 457,945,873 Other assets less liabilities .................................................... 1,011,385 -------------- Total Net Assets -- 100.0% ....................................................... $ 458,957,258 ==============
(a) See Note 2a of Notes to Financial Statements. (b) The aggregate cost for federal income tax purposes was $457,945,873. At June 30, 2003, the components of distributable earnings, on a tax basis consisted of $198,033 of undistributed ordinary income and $0 of long-term gains. (c) Floating rate notes are instruments whose interest rates vary with changes in a designated base rate (such as the prime interest rate) on a specified date (such as coupon date or interest payment date). These instruments are payable on demand and are secured by letters of credit or other credit support agreements from major banks. Maturity dates shown represent the ultimate maturity of the note. 144A Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $74,942,281 or 16.3% of net assets. For the year ended June 30, 2003, the Fund has elected to defer $435 of capital losses attributable to post-October losses. See accompanying notes to financial statements. 4 TAX EXEMPT MONEY MARKET TRUST Investments as of June 30, 2003 Investments -- 99.5% of Total Net Assets
PRINCIPAL AMOUNT DESCRIPTION VALUE (a) - ----------------------------------------------------------------------------------------------------------------------- ALASKA -- 5.5% $ 665,000 Alaska Industrial Development & Export Authority, 1.300%, 7/01/2003 (c) ............ $ 665,000 160,000 Alaska Industrial Development & Export Authority, 1.300%, 7/01/2005 (c) ............ 160,000 75,000 Alaska Industrial Development & Export Authority, 1.300%, 7/01/2005 (c) ............ 75,000 240,000 Alaska Industrial Development & Export Authority, 1.300%, 7/01/2006 (c) ............ 240,000 100,000 Alaska Industrial Development & Export Authority, 1.300%, 7/01/2007 (c) ............ 100,000 190,000 Alaska Industrial Development & Export Authority, 1.300%, 7/01/2007 (c) ............ 190,000 380,000 Alaska Industrial Development & Export Authority, 1.300%, 7/01/2012 (c) ............ 380,000 -------------- 1,810,000 -------------- FLORIDA -- 9.0% 1,000,000 Sunshine State Governmental Financing Commission, 1.000%, 7/16/2003 ................ 1,000,000 500,000 Sunshine State Governmental Financing Commission, 0.900%, 9/10/2003 ................ 500,000 500,000 Gainesville, FL, Utility Systems, 0.950%, 9/10/2003 ................................ 500,000 1,000,000 Palm Beach County, FL, Industrial Development, 1.250%, 11/01/2011 (c) .............. 1,000,000 -------------- 3,000,000 -------------- HAWAII -- 7.2% 500,000 Honolulu, HI, City & County, 0.950%, 8/07/2003 ..................................... 500,000 1,875,000 Honolulu, HI, City & County, 1.300%, 12/01/2013 (c) ................................ 1,875,000 -------------- 2,375,000 -------------- ILLINOIS -- 6.6% 2,200,000 McCook, IL, 1.050%, 12/01/2021 (c) ................................................. 2,200,000 -------------- INDIANA -- 1.5% 500,000 Indiana Bond Bank, 2.000%, 1/27/2004 ............................................... 502,885 -------------- IOWA -- 3.0% 1,000,000 West Des Moines, IA, Commerical Development, 0.970%, 12/01/2014 (c) ................ 1,000,000 -------------- MARYLAND -- 4.5% 1,500,000 Baltimore County, MD, Metropolitan District, 1.100%, 7/11/2003 ..................... 1,500,000 -------------- MASSACHUSETTS -- 4.5% 500,000 Commonwealth of Massachusetts, 0.900%, 8/11/2003 ................................... 500,000 500,000 Massachusetts Health & Educational Facilities Authority, (Capital Asset Program), 0.900%, 7/01/2010 (c) .................................... 500,000 500,000 Massachusetts, (Central Artery), 0.950%, 12/01/2030 (c) ............................ 500,000 -------------- 1,500,000 -------------- MINNESOTA -- 1.5% 500,000 Rochester, MN, Health Care Facilities, 0.900%, 9/10/2003 ........................... 500,000 -------------- PENNSYLVANIA -- 6.0% 2,000,000 Quakertown, PA, Hospital Authority, 0.950%, 7/01/2005 (c) .......................... 2,000,000 -------------- SOUTH CAROLINA -- 1.5% 500,000 Berkeley County, SC, Pollution Control, (Amoco Chemical Co.), 0.950%, 7/01/2012 (c) ............................................................. 500,000 -------------- TENNESSEE -- 6.6% 2,200,000 Blount County, TN, Industrial Development Board, 1.200%, 8/01/2008 (c) ............. 2,200,000 -------------- TEXAS -- 22.9% 1,500,000 San Antonio, TX, Water System, 1.000%, 7/09/2003 ................................... 1,500,000 500,000 Austin, TX, 0.900%, 8/14/2003 ...................................................... 500,000 1,500,000 Texas State, 2.750%, 8/29/2003 ..................................................... 1,503,227 2,100,000 Montgomery County, TX, Industrial Development Authority, 1.300%, 8/01/2017 (c) ..... 2,100,000 1,000,000 San Antonio, TX, Airport System, 1.150%, 4/01/2020 (c) ............................. 1,000,000 1,000,000 Houston, TX, Independent School District, 1.050%, 6/15/2033 ........................ 999,690 -------------- 7,602,917 -------------- UNITED STATES -- 3.2% 1,045,000 Puttable Floating Option Tax-Exempt Receipts, 0.950%, 1/01/2032 (c) ................ 1,044,960 -------------- UTAH -- 4.5% 500,000 Intermountain Power Agency, 1.000%, 7/01/2015 (c) .................................. 500,000 1,000,000 Intermountain Power Agency, 0.950%, 7/01/2018 (c) .................................. 1,000,000 -------------- 1,500,000 -------------- WASHINGTON -- 3.0% 315,000 Moses Lake, WA, 1.500%, 8/01/2003 .................................................. 315,000 300,000 Pierce County, WA, Fire Protection, District No. 16, 1.100%, 12/01/2003 ............ 300,000 370,000 Franklin County, WA, 3.500%, 12/01/2003 ............................................ 373,065 -------------- 988,065 -------------- WISCONSIN -- 1.5% 500,000 West Allis West Milwaukee, WI, School District, 1.800%, 9/22/2003 .................. 500,055 -------------- WYOMING -- 7.0% 1,000,000 Sweetwater County, WY, Pollution Control, 1.050%, 7/16/2003 ........................ 1,000,000 1,330,000 Sublette County, WY, Pollution Control (Exxon Mobil Corp.), 0.900%, 11/01/2014 (c).. 1,330,000 -------------- 2,330,000 -------------- Total Investments -- 99.5% (Identified Cost $33,053,882) (b) ....................... 33,053,882 Other assets less liabilities ...................................................... 157,521 -------------- Total Net Assets -- 100.0% ......................................................... $ 33,211,403 ==============
(a) See Note 2a of Notes to Financial Statements. (b) The aggregate cost for federal income tax purposes was $33,053,882. At June 30, 2003 the fund had a capital loss carryover of approximately $7,652, which expires on June 30, 2008. This may be available to offset future realized capital gains, if any, to the extent provided by regulations. At June 30, 2003, the components of distributable earnings, on a tax basis consisted of $66,404 of undistributed ordinary income and $0 of long-term gains. (c) Floating rate notes are instruments whose interest rates vary with changes in a designated base rate (such as the prime interest rate) on a specified date (such as coupon date or interest payment date). These instruments are payable on demand and are secured by letters of credit or other credit support agreements from major banks. Maturity dates shown represent the ultimate maturity of the note. See accompanying notes to financial statements. 5 STATEMENTS OF ASSETS & LIABILITIES June 30, 2003
CASH MANAGEMENT TRUST TAX EXEMPT MONEY MARKET MONEY MARKET SERIES TRUST --------------------- --------------- ASSETS Investments, at value (Identified cost $457,945,873 and $33,053,882, respectively) ..................... $ 457,945,873 $ 33,053,882 Cash ................................................ -- 73,511 Receivable for: Shares sold ......................................... 3,157,226 251,333 Interest ............................................ 674,494 97,612 --------------------- --------------- 461,777,593 33,476,338 --------------------- --------------- LIABILITIES Payable for: Shares redeemed ..................................... 2,257,568 156,084 Dividends payable ................................... 1,970 194 Accrued expenses: Management fees ..................................... 155,279 9,899 Deferred Trustees' fees ............................. 133,903 45,527 Transfer agent ...................................... 166,793 12,134 Accounting and administrative fees .................. 30,443 2,146 Other expenses ...................................... 74,379 38,951 --------------------- --------------- 2,820,335 264,935 --------------------- --------------- NET ASSETS ............................................ $ 458,957,258 $ 33,211,403 ===================== =============== Net assets consist of: Paid in capital ..................................... $ 458,890,312 $ 33,198,328 Undistributed (overdistributed) net investment income ............................................. 67,382 20,727 Accumulated net realized gain (loss) on investments.. (436) (7,652) --------------------- --------------- NET ASSETS ............................................ $ 458,957,258 $ 33,211,403 ===================== =============== COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: CLASS A SHARES: Net assets .......................................... $ 418,814,444 $ 32,800,019 ===================== =============== Shares of beneficial interest ....................... 418,749,219 32,786,586 ===================== =============== Net asset value and redemption price per share ...... $ 1.00 $ 1.00 ===================== =============== CLASS B SHARES: Net assets .......................................... $ 36,212,580 $ 411,384 ===================== =============== Shares of beneficial interest ....................... 36,211,640 411,269 ===================== =============== Net asset value and redemption price per share ...... $ 1.00 $ 1.00 ===================== =============== CLASS C SHARES: Net assets .......................................... $ 3,930,234 $ -- ===================== =============== Shares of beneficial interest ....................... 3,929,667 -- ===================== =============== Net asset value and redemption price per share ...... $ 1.00 $ -- ===================== ===============
See accompanying notes to financial statements. 6 STATEMENTS OF OPERATIONS For the Year Ended June 30, 2003
CASH MANAGEMENT TRUST - TAX EXEMPT MONEY MARKET MONEY MARKET SERIES TRUST ----------------------- ------------------ INVESTMENT INCOME Interest ................................................................ $ 8,440,666 $ 525,367 ----------------------- ------------------ Expenses Management fees ....................................................... 2,039,902 144,315 Trustees' fees and expenses ........................................... 54,553 10,543 Accounting and administrative ......................................... 371,431 25,898 Custodian fees ........................................................ 73,120 38,877 Transfer agent ........................................................ 1,754,984 130,943 Audit and tax services ................................................ 25,938 25,405 Legal fees ............................................................ 43,127 4,220 Shareholder reporting ................................................. 29,546 6,098 Registration fees ..................................................... 78,102 32,869 Miscellaneous ......................................................... 33,301 4,083 ----------------------- ------------------ Total expenses before reductions ........................................ 4,504,004 423,251 Less reimbursement/waiver ............................................. -- (3,439) Less reductions ....................................................... -- (621) ----------------------- ------------------ Net expenses ............................................................ 4,504,004 419,191 ----------------------- ------------------ Net investment income ..................................................... 3,936,662 106,176 ----------------------- ------------------ REALIZED GAIN (LOSS) ON INVESTMENTS Realized gain (loss) on investments - net ............................... 1,073 -- ----------------------- ------------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ........... $ 3,937,735 $ 106,176 ======================= ==================
See accompanying notes to financial statements. 7 STATEMENTS OF CHANGES IN NET ASSETS
CASH MANAGEMENT TRUST - TAX EXEMPT MONEY MARKET SERIES MONEY MARKET TRUST -------------------------------- -------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED JUNE 30, JUNE 30, JUNE 30, JUNE 30, 2003 2002 2003 2002 -------------- -------------- -------------- -------------- FROM OPERATIONS Net investment income ............................. $ 3,936,662 $ 9,667,827 $ 106,176 $ 363,895 Net realized gain (loss) on investments and foreign currency transactions .................... 1,073 19,248 -- -- -------------- -------------- -------------- -------------- Increase in net assets resulting from operations .. 3,937,735 9,687,075 106,176 363,895 -------------- -------------- -------------- -------------- FROM DISTRIBUTIONS TO SHAREHOLDERS Net investment income (a) Class A ......................................... (3,638,617) (9,133,092) (100,895) (361,484) Class B ......................................... (283,294) (482,242) (899) (2,411) Class C ......................................... (34,420) (57,910) -- -- -------------- -------------- -------------- -------------- (3,956,331) (9,673,244) (101,794) (363,895) -------------- -------------- -------------- -------------- FROM CAPITAL SHARE TRANSACTIONS Proceeds from sale of shares (b) .................. 626,533,663 773,190,735 28,748,326 35,818,308 Net asset value of shares issued in connection with the reinvestment of dividends from net investment income and distributions from net realized gains ................................... 3,848,644 9,444,340 99,510 355,426 Cost of shares redeemed ........................... (703,454,020) (795,752,837) (34,137,875) (45,134,739) -------------- -------------- -------------- -------------- Decrease in net assets derived from capital share transactions ....................................... (73,071,713) (13,117,762) (5,290,039) (8,961,005) -------------- -------------- -------------- -------------- Total decrease in net assets ...................... (73,090,309) (13,103,931) (5,285,657) (8,961,005) NET ASSETS Beginning of period ............................... 532,047,567 545,151,498 38,497,060 47,458,065 -------------- -------------- -------------- -------------- End of period ..................................... $ 458,957,258 $ 532,047,567 $ 33,211,403 $ 38,497,060 ============== ============== ============== ============== UNDISTRIBUTED NET INVESTMENT INCOME ................. $ 67,382 $ 66,294 $ 20,727 $ 16,345 ============== ============== ============== ==============
(a) Amounts distributed include a net realized short-term gain of $8,450 for the Cash Management Trust Money Market Series for the year ended June 30, 2002. (b) Shares of the series are sold and redeemed at Net Asset Value ($1.00). See accompanying notes to financial statements. 8 FINANCIAL HIGHLIGHTS For a share outstanding throughout each period.
INCOME FROM INVESTMENT OPERATIONS: NET ASSET ---------------------------------------- VALUE, NET REALIZED BEGINNING NET AND UNREALIZED TOTAL FROM OF INVESTMENT GAIN (LOSS) ON INVESTMENT THE PERIOD INCOME INVESTMENTS OPERATIONS ---------- ---------- -------------- ---------- CASH MANAGEMENT TRUST- MONEY MARKET SERIES CLASS A,B,C 6/30/2003 $ 1.00 $ 0.0076 $ -- $ 0.0076 6/30/2002 1.00 0.0175 -- 0.0175 6/30/2001 1.00 0.0524 -- 0.0524 6/30/2000 1.00 0.0498 -- 0.0498 6/30/1999 1.00 0.0445 -- 0.0445 TAX EXEMPT MONEY MARKET TRUST CLASS A,B 6/30/2003 $ 1.00 $ 0.0028 $ -- $ 0.0028 6/30/2002 1.00 0.0085 -- 0.0085 6/30/2001 1.00 0.0317 -- 0.0317 6/30/2000 1.00 0.0309 -- 0.0309 6/30/1999 1.00 0.0276 -- 0.0276 LESS DISTRIBUTIONS: ------------------------------------------------ DIVIDENDS DISTRIBUTIONS NET ASSET FROM FROM NET VALUE, TOTAL NET INVESTMENT REALIZED TOTAL END OF RETURN INCOME CAPITAL GAINS DISTRIBUTIONS THE PERIOD (%) -------------- ------------- ------------- ---------- ------ CASH MANAGEMENT TRUST- MONEY MARKET SERIES CLASS A,B,C 6/30/2003 $ (0.0076) $ -- $ (0.0076) $ 1.00 0.8 6/30/2002 (0.0175)(a) -- (0.0175) 1.00 1.8 6/30/2001 (0.0524)(a) -- (0.0524) 1.00 5.4 6/30/2000 (0.0498)(a) -- (0.0498) 1.00 5.1 6/30/1999 (0.0445)(a) -- (0.0445) 1.00 4.6 TAX EXEMPT MONEY MARKET TRUST CLASS A,B 6/30/2003 $ (0.0028) $ -- $ (0.0028) $ 1.00 0.3(b) 6/30/2002 (0.0085) -- (0.0085) 1.00 0.9 6/30/2001 (0.0317) -- (0.0317) 1.00 3.2(b) 6/30/2000 (0.0309)(a) -- (0.0309) 1.00 3.1(b) 6/30/1999 (0.0276) -- (0.0276) 1.00 2.8(b)
9
RATIOS TO AVERAGE NET ASSETS: ----------------------------- NET ASSETS, EXPENSES AFTER NET END OF EXPENSE INVESTMENT THE PERIOD EXPENSES REDUCTIONS INCOME (000'S) (%) (%) (%) -------------- ------------ -------------- ---------- CASH MANAGEMENT TRUST- MONEY MARKET SERIES CLASS A,B,C 6/30/2003 $ 458,957 0.88 0.88 0.77 6/30/2002 532,048 0.91 0.91 1.75 6/30/2001 545,151 0.84 0.84 5.27 6/30/2000 603,916 0.84 0.84 4.96 6/30/1999 664,609 0.84 0.84 4.46 TAX EXEMPT MONEY MARKET TRUST CLASS A,B 6/30/2003 $ 33,211 1.16(c) 1.16(c)(e) 0.29 6/30/2002 38,497 1.16 1.16(d) 0.86 6/30/2001 47,458 0.86(c) 0.86(c) 3.20 6/30/2000 71,964 0.65(c) 0.65(c) 3.10 6/30/1999 84,879 0.65(c) 0.65(c) 2.76
The subadviser to the Trusts prior to June 1, 2001, was Back Bay Advisors, L.P. Effective June 1, 2001, Reich & Tang Asset Management, LLC became the subadviser to the Trusts. (a) Including net realized gain (loss) on investments. (b) Had certain expenses not been reduced during the period, total returns would have been lower. (c) After giving effect to an expense limitation and fee waiver. (d) Tax Exempt Money Market Trust had Custodian fee credits totalling $304 during the year ended June 30, 2002. (e) Tax Exempt Money Market Trust had Custodian fee credits totalling $621 during the year ended June 30, 2003. See accompanying notes to financial statements. 10 NOTES TO FINANCIAL STATEMENTS For the Year Ended June 30, 2003 1. Organization. CDC Nvest Cash Management Trust - Money Market Series and CDC Nvest Tax Exempt Money Market Trust (the "Trusts" and each a "Trust") are organized as Massachusetts business trusts. Each Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. Each Declaration of Trust permits the Trustees to issue an unlimited number of shares of the Trust. CDC Nvest Cash Management Trust - Money Market Series (the "CMT Money Market Series") offers Class A, Class B and Class C shares. The Trust seeks maximum current income consistent with preservation of capital and liquidity. CDC Nvest Tax Exempt Money Market Trust (the "Tax Exempt Money Market Trust") offers Class A and Class B shares. The Trust seeks current income exempt from federal income taxes consistent with the preservation of principal. Shares of the Trusts are sold without a front end sales charge. Shares acquired by exchange of shares of another CDC Nvest stock or bond fund may be subject to a contingent deferred sales charge. 2. Significant Accounting Policies. The following is a summary of significant accounting policies consistently followed by each Trust in the preparation of its financial statements. The Trusts' financial statements are prepared in accordance with accounting principles generally accepted in the United States of America that require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. a. Security Valuation. The Trusts employ the amortized cost method of security valuation as set forth in Rule 2a-7 under the Investment Company Act of 1940 which, in the opinion of the Trustees of each Trust, represents the fair value of the particular security. The amortized cost of a security is determined by valuing it at original cost and thereafter assumes a constant accretion/amortization to maturity of any discount/premium. b. Repurchase Agreements. The Trusts, through their custodian, receive delivery of the underlying securities collateralizing repurchase agreements. It is the Trusts' policy that the market value of the collateral be at least equal to 100% of the repurchase price including interest. The subadviser is responsible for determining that the value of the collateral is at all times at least equal to the repurchase price. Repurchase agreements could involve certain risks in the event of default or insolvency of the counterparty, including possible delays or restrictions upon the Trust's ability to dispose of the underlying security. c. Security Transactions and Related Investment Income. Security transactions are accounted for on trade date and interest income is recorded on an accrual basis. In determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis. d. Federal Income Taxes. Each Trust intends to meet the requirements of the Internal Revenue Code applicable to regulated investment companies, and to distribute to its shareholders substantially all of its taxable and tax exempt income. Accordingly, no provision for federal income tax has been made. Distributions from net investment income and short-term capital gains are treated as ordinary income for tax purposes. e. Dividends and Distributions to Shareholders. Dividends and distributions are declared daily to shareholders of record at the time and are paid monthly. Long-term gain distributions, if any, will be made annually. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to deferred Trustee fees. f. Other. Each Trust invests primarily in a portfolio of money market instruments maturing in 397 days or less whose ratings are within the two highest rating categories of a nationally recognized rating agency or, if not rated, are believed to be of comparable quality. The ability of the issuers of the securities held by the Trusts to meet their obligations may be affected by foreign, economic, political and legal developments in the case of foreign banks, foreign branches, or subsidiaries of U.S. banks, or domestic economic developments in a specific industry, state or region. 3. Investment Transactions. For the year ended June 30, 2003, purchases and sales or maturities of short-term obligations (including securities purchased subject to repurchase agreements) were as follows: Trust Purchases Sales - ----------------------------- ---------------- ---------------- CMT Money Market Series $ 8,396,281,205 $ 8,485,298,979 Tax Exempt Money Market Trust 72,052,811 77,267,229 11 NOTES TO FINANCIAL STATEMENTS (continued) For the Year Ended June 30, 2003 4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES. a. Management Fees. CDC IXIS Asset Management Advisers, L.P. ("CDC IXIS Advisers") is the investment adviser to each of the Trusts. Under the terms of the management agreements, each Trust pays a management fee at the following annual rates, calculated daily and payable monthly, based on each Trust's average daily net assets:
Percentage of Average Daily Net Assets -------------------------------------------------------------------------------------------- First Next Next Next Next Over Trust $100 million $400 million $500 million $500 million $500 million $2 billion - ----------------------------- ------------ ------------ ------------ ------------ ------------ ------------ CMT Money Market Series 0.400% 0.400% 0.375% 0.325% 0.275% 0.225% Tax Exempt Money Market Trust 0.400% 0.300% 0.300% 0.300% 0.300% 0.300%
For the year ended June 30, 2003, the management fees for each Trust were as follows:
Percentage of Average Gross Waiver of Net Daily Net Assets Management Management Management --------------------- Fund Fee Fee Fee Gross Net - ----------------------------- ------------ ------------ ------------ ---------- ------- CMT Money Market Series $ 2,039,902 $ -- $ 2,039,902 0.400% 0.400% Tax Exempt Money Market Trust 144,315 3,439 140,876 0.400% 0.400%
CDC IXIS Advisers has agreed to voluntarily waive its management fee (and, to the extent necessary bear other expenses of each Fund) in order to preserve the net asset value of each Fund at $1.00 per share. The expense limitations are voluntary and temporary and may be revised or terminated at any time without notice. CDC IXIS Advisers has entered into separate subadvisory agreements for each Trust with Reich & Tang Asset Management, LLC ("Reich & Tang"). Payments to CDC IXIS Advisers are reduced by payments to the subadviser. CDC IXIS Advisers and Reich & Tang are wholly owned subsidiaries of CDC IXIS Asset Management North America, L.P. Certain officers and directors of CDC IXIS Advisers are also officers or Trustees of the Trusts. b. Accounting and Administrative Expense. CDC IXIS Asset Management Services, Inc. ("CIS"), a wholly owned subsidiary of CDC IXIS Asset Management North America, L.P., performs certain accounting and administrative services for the Trusts and has subcontracted with Investors Bank & Trust Company to serve as subadministrator. Pursuant to an agreement among the Trusts, CDC Nvest Funds Trust I, CDC Nvest Funds Trust II, CDC Nvest Funds Trust III, CDC Nvest Companies Trust I and CIS, each Trust pays CIS its pro rata portion of a group fee for these services representing the higher amount based on the following calculations: (1) Percentage of Eligible Average Daily Net Assets First Next Over $5 billion $5 billion $10 billion ---------- ---------- ----------- 0.0600% 0.0500% 0.0450% or (2) Each Trust's pro rata portion, based on eligible assets, of the annual aggregate minimum fee of $3.4 million. For the year ended June 30, 2003, amounts paid to CIS for accounting and administrative expense were as follows: Accounting and Percentage of Average Trust Administrative Daily Net Assets - ----------------------------- -------------- --------------------- CMT Money Market Series $ 371,431 0.073% Tax Exempt Money Market Trust 25,898 0.072% Prior to January 1, 2003, the annual aggregate fee to average daily net assets was 0.0350% on the first $5 billion in average daily net assets, 0.0325% on the next $5 billion in average daily net assets, and 0.0300% on average daily net assets over $10 billion. The annual aggregate minimum fee was $2.5 million. 12 NOTES TO FINANCIAL STATEMENTS (continued) For the Year Ended June 30, 2003 c. Transfer Agent Fees. CIS is the transfer and shareholder servicing agent for each Trust and has subcontracted with Boston Financial Data Services ("BFDS") to serve as sub-transfer agent. Each Trust pays CIS service fees for servicing shareholder accounts. Classes A, B and C pay service fees monthly representing the higher amount based on the following calculations: (1) Annual aggregate fee determined by applying an annual fee rate (see schedule below) to the eligible average daily net assets. Eligible assets are the average daily net assets of all non-networked accounts in money market funds offered within the CDC Nvest Family of Funds for which there are exchange privileges among the Funds. First Next Over $650 million $5 billion $5.65 billion ------------ ---------- ------------- 0.239% 0.200% 0.195% Each Class of shares is subject to an annual class minimum of $18,000. or (2) An allocated portion, based on eligible assets, of the annual aggregate minimum fee of $1.4 million. In addition, pursuant to other servicing agreements, the classes pay service fees to other firms that provide similar services for their own shareholder accounts. CIS, BFDS and other firms are also reimbursed by the Trusts for out-of-pocket expenses. For the year ended June 30, 2003, amounts paid to CIS as compensation for its services as transfer agent were as follows: Transfer Agent Trust Fee - ----------------------------- ------------ CMT Money Market Series $ 1,330,485 Tax Exempt Money Market Trust 109,870 Effective July 1, 2003, the annual aggregate minimum fee changed to $1.1 million. d. Trustees Fees and Expenses. Effective June 10, 2003, the Board of Trustees approved the unification of the CDC Nvest Funds Board with the Loomis Sayles Funds I and Loomis Sayles Funds II Boards of Trustees. The result is a combined Board of Trustees comprised of CDC Nvest Funds Trustees and Loomis Sayles Trustees that will jointly govern CDC Nvest Funds Trust I, II, III, CDC Nvest Companies Trust I, CDC Nvest Cash Management Trust - Money Market Series, CDC Nvest Tax Exempt Money Market Trust and AEW Real Estate Income Fund (the "CDC Nvest Funds") and Loomis Sayles Funds I and Loomis Sayles Funds II (the "Loomis Sayles Funds"). The Trusts do not pay any compensation directly to their officers or Trustees who are directors, officers or employees of CDC IXIS Advisers, CDC IXIS Asset Management Distributors, L.P., CDC IXIS Asset Management North America L.P., CIS or their affiliates. Each other Trustee receives a retainer fee at the annual rate of $45,000 and meeting attendance fees of $4,500 for each meeting of the Board of Trustees attended. Each committee member receives an additional retainer fee at the annual rate of $7,000 while each committee chairman receives a retainer fee (beyond the $7,000 fee) at the annual rate of $5,000. The retainer fees assume four Board or Committee meetings per year; Trustees are compensated per meeting in excess of four per year, at the rate of $4,500 and $1,750, respectively. These fees are allocated to the various CDC Nvest Funds and Loomis Sayles Funds based on a formula that takes into account, among other factors, the relative net assets of each Trust. A deferred compensation plan (the "Plan") is available to the Trustees on a voluntary basis. Each participating Trustee will receive an amount equal to the value that such deferred compensation would have been had it been invested in the Trusts or certain other CDC Nvest Funds on the normal payment date. Deferred amounts remain in the Trusts until distributed in accordance with the Plan. e. Publishing Services. CIS performs certain desktop publishing services for the Funds. Fees for theses services are presented in the statements of operations as shareholder reporting. For the year ended June 30, 2003, amounts paid to CIS as compensation for these services were as follows: Publishing Trust Services Fee - ----------------------------- ------------ CMT Money Market Series $ 3,789 Tax Exempt Money Market Trust 3,502 5. Concentration of Credit. At June 30, 2003, the Tax Exempt Money Market Trust had the following concentrations by revenue source in excess of 10% of the Trust's total net assets: Manufacturing (12.5%). The Trust also had more than 10% of its total net assets invested in tax-exempt obligations of Texas (22.9%). 13 REPORT OF INDEPENDENT AUDITORS To the Trustees and Shareholders of CDC Nvest Cash Management Trust - Money Market Series and CDC Nvest Tax Exempt Money Market Trust 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 CDC Nvest Cash Management Trust - Money Market Series and CDC Nvest Tax Exempt Money Market Trust (the "Trusts") at June 30, 2003, and the results of each of their operations, the changes in each of their net assets and the financial highlights for the periods indicated, 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 Trusts' 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 June 30, 2003 by correspondence with the custodian, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Boston, Massachusetts August 8, 2003 14 TRUSTEES' INFORMATION The Funds are governed by a Board of Trustees, which is responsible for generally overseeing the conduct of Fund business and for protecting the interests of shareholders. The trustees meet periodically throughout the year to oversee the Funds' activities, review contractual arrangements with companies that provide services to the Funds and review the Funds' performance.
POSITION(s) HELD WITH NUMBER OF PORTFOLIOS IN FUNDS, LENGTH OF TIME PRINCIPAL OCCUPATION(s) FUND COMPLEX OVERSEEN AND NAME, AGE AND ADDRESS SERVED AND TERM OF OFFICE/1/ DURING PAST 5 YEARS OTHER DIRECTORSHIPS HELD - --------------------------- ----------------------------- ------------------------------ ------------------------------ INDEPENDENT TRUSTEES Graham T. Allison, Jr. (63) Trustee (2); Douglas Dillon Professor and 44; 399 Boylston Street 19 years Director for the Belfer Center Director, Taubman Centers, Boston, MA 02116 of Science and International Inc.; Board Member, USEC Affairs, John F. Kennedy Inc. School of Government, Harvard University Edward A. Benjamin (65) Trustee (1) Director, Coal, Energy 44; 399 Boylston Street Less than 1 year Investments & Management, Director, Precision Optics Boston, MA 02116 LLC; formerly, Partner, Corporation (optics Ropes & Gray (law firm) manufacturer) until 1999 Daniel M. Cain (58) Trustee, President and CEO, Cain 44; 452 Fifth Avenue Chairman (1); Brothers & Company, Trustee for Universal Health New York, NY 10018 7 years Incorporated (investment Realty Income Trust banking) Director, PASC Paul G. Chenault (69) Trustee (2) Retired; Trustee, First 44; 5852 Pebble Beach Way Less than 1 year Variable Life (variable life Director, Mailco Office San Luis Obispo, CA 93401 insurance) Products, Inc. Kenneth J. Cowan (71) Trustee Retired 44; 399 Boylston Street Chairman (2); None Boston, MA 02116 28 years Richard Darman (60) Trustee (2); Partner, The Carlyle Group 44; 399 Boylston Street 7 years (investments); Chairman of Director and Chairman, AES Boston, MA 02116 the Board of Directors of Corporation AES Corporation (international power company); formerly, Professor, John F. Kennedy School of Government, Harvard University Sandra O. Moose (61) Trustee (1); Senior Vice President and 44; One Exchange Place 21 years Director, The Boston Director, Verizon Boston, MA 02109 Consulting Group, Inc. Communications (management consulting) Director, Rohm and Haas Company John A. Shane (70) Trustee (2); President, Palmer Service 44; 200 Unicorn Park Drive 21 years Corporation (venture capital Director, Gensym Woburn, MA 01801 organization) Corporation; Director, Overland Data, Inc. Director, Abt Associates
15 TRUSTEES' INFORMATION
POSITION(s) HELD WITH NUMBER OF PORTFOLIOS IN FUNDS, LENGTH OF TIME PRINCIPAL OCCUPATION(s) FUND COMPLEX OVERSEEN NAME, AGE AND ADDRESS SERVED AND TERM OF OFFICE/1/ DURING PAST 5 YEARS AND OTHER DIRECTORSHIPS HELD - --------------------------- ----------------------------- ------------------------------ ------------------------------ INDEPENDENT TRUSTEES (continued) Pendleton P. White (72) Trustee (2); Retired 44; 6 Breckenridge Lane 22 years None Savannah, GA 31411 INTERESTED TRUSTEES Robert J. Blanding/2/ (56) Trustee President, Chairman, 44; 555 California Street Less than 1 year Director, and Chief None San Francisco, CA 94104 Executive Officer, Loomis Sayles, Chief Executive Officer - Loomis Sayles Funds II; President and CEO - Loomis Sayles Funds I John T. Hailer/3/ (42) President and Chief President and Chief 44; 399 Boylston Street Executive Officer, Executive Officer, CDC IXIS None Boston, MA 02116 Trustee; Asset Management 3 years Distributors, L.P.; President - Loomis Sayles Funds II, formerly, Senior Vice President, Fidelity Investments Peter S. Voss/4/ (56) Chairman of the Board, Director, President and Chief 44; 399 Boylston Street Trustee; Executive Officer, CDC IXIS Trustee of Harris Associates Boston, MA 02116 11 years Asset Management North Investment Trust/5/ America, L.P. OFFICERS Nicholas H. Palmerino (38) Treasurer; Senior Vice President, CDC 44; 399 Boylston Street Not Applicable IXIS Asset Management None Boston, MA 02116 Services, Inc.; Senior Vice President, CDC IXIS Asset Management Advisers, L.P.; formerly, Vice President, Loomis, Sayles & Company, L.P.
16 TRUSTEES' INFORMATION
POSITION(s) HELD WITH NUMBER OF PORTFOLIOS IN FUNDS, LENGTH OF TIME PRINCIPAL OCCUPATION(s) FUND COMPLEX OVERSEEN NAME, AGE AND ADDRESS SERVED AND TERM OF OFFICE/1/ DURING PAST 5 YEARS AND OTHER DIRECTORSHIPS HELD - --------------------------- ----------------------------- ------------------------------ ------------------------------ OFFICERS (continued) John E. Pelletier (39) Secretary and Clerk; Senior Vice President, 44; 399 Boylston Street Not Applicable General Counsel, Secretary None Boston, MA 02116 and Clerk, CDC IXIS Distribution Corporation; Senior Vice President, General Counsel, Secretary and Clerk, CDC IXIS Asset Management Distributors, L.P.; Senior Vice President, General Counsel, Secretary and Clerk, CDC IXIS Asset Management Advisers, L.P.; Executive Vice President, General Counsel, Secretary, Clerk, and Director, CDC IXIS Asset Management Services, Inc.
(1) Member of Audit Committee. (2) Member of Contract Review Committee and Governance Committee. /1/ All Trustees serve until retirement, resignation or removal from the Board. The current retirement age is 72. Mr. White is expected to retire by December 31, 2003. /2/ Mr. Blanding is deemed an "interested person" of CDC Nvest Funds because he holds the following positions with affiliated persons of the Trusts: President, Chairman, Director and Chief Executive Officer of Loomis, Sayles & Company, L.P. ("Loomis Sayles"). /3/ Mr. Hailer is an "interested person" of CDC Nvest Funds because he holds the following positions with affiliated persons of the Trusts: Director and Executive Vice President of CDC IXIS Asset Management Distribution Corporation ("CDC IXIS Distribution Corporation"); and President and Chief Executive Officer of CDC IXIS Asset Management Advisers, L.P. ("CDC IXIS Advisers"). /4/ Mr. Voss is an "interested person" of CDC Nvest Funds because he holds the following positions with affiliated persons of the Trusts: Director of CDC IXIS Asset Management Services, Inc. ("CIS"); Director of CDC IXIS Distribution Corporation; Director and Chairman of CDC IXIS Asset Management Associates Inc.; Director of AEW Capital Management, Inc; Director of Harris Associates, Inc; Director of Loomis, Sayles & Company, Inc.; Director of Reich & Tang Asset Management Inc.; Director of Westpeak Investment Advisors, Inc.; Director of Vaughan, Nelson, Scarborough & McCullough, Inc.; Director, Hansberger Group, Inc.; Member, Board of Managers, Harris Alternatives L.L.C.; and Director and Member of the Executive Board of CDC IXIS Asset Management /5/ As of January 30, 2003, Harris Associates Investment Trust had seven series that were overseen by its Board of Trustees. 17 Notes 18 Notes 19 Item 2. Code of Ethics. Not applicable. Item 3. Audit Committee Financial Expert. Not applicable. Item 4. Principal Accountant Fees and Services. Not applicable. Item 5. Audit Committee of Listed Registrants. Not applicable. Item 6. [Reserved.] Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. [Reserved.] Item 9. Controls and Procedures. The Trust's principal executive officer and principal financial officer have concluded that the Trust's disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Trust in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, based upon such officers' evaluation of these controls and procedures as of a date within 90 days of the filing date of the report. There were no significant changes or corrective actions with regard to significant deficiencies or material weaknesses in the Trust's internal controls or in other factors that could significantly affect the Trust's internal controls subsequent to the date of their evaluation. Item 10. Exhibits. (a) Code of Ethics - Not applicable. (b) Certifications of Principal Executive Officer and Principal Financial Officer. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CDC Nvest Tax Exempt Money Market Trust By: /s/ John T. Hailer ---------------------------- Name: John T. Hailer Title: President Date: August 28, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ John T. Hailer ---------------------------- Name: John T. Hailer Title: Chief Executive Officer Date: August 28, 2003 By: /s/ Nicholas Palmerino ---------------------------- Name: Nicholas Palmerino Title: Treasurer Date: August 28, 2003 EXHIBIT INDEX (b)(1) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2 under the Investment Company Act of 1940. (b)(2) Certification of principal executive officer and principal financial officer as required by Section 906 of the Sarbanes-Oxley Act of 2002. EX-99.CERT 3 dex99cert.txt CERTIFICATIONS Exhibit (b)(1) CDC Nvest Tax Exempt Money Market Trust Exhibit to SEC Form N-CSR Section 302 Certifications I, John T. Hailer, certify that: 1. I have reviewed this report on Form N-CSR of CDC Nvest Tax Exempt Money Market Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all materials respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows), of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a. Designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made know to us by others within those entities, particularly during the period in which this report is being prepared; b. Evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing of this report (the "Evaluation Date"); and c. Presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a. All significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to the significant deficiencies and material weaknesses. Date: August 28, 2003 /s/ John T. Hailer --------------------------- John T. Hailer President & Chief Executive Officer CDC Nvest Tax Exempt Money Market Trust Exhibit to SEC Form N-CSR Section 302 Certifications I, Nicholas H. Palmerino, certify that: 1. I have reviewed this report on Form N-CSR of CDC Nvest Tax Exempt Money Market Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all materials respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows), of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a. Designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made know to us by others within those entities, particularly during the period in which this report is being prepared; b. Evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing of this report (the "Evaluation Date"); and c. Presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a. All significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to the significant deficiencies and material weaknesses. Date: August 28, 2003 /s/ Nicholas H. Palmerino --------------------------- Nicholas H. Palmerino Treasurer EX-99.906CT 4 dex99906ct.txt CERTIFICATIONS Exhibit (b)(2) CDC Nvest Tax Exempt Money Market Trust Section 906 Certification In connection with the report on Form N-CSR for the period ended June 30, 2003 for the Registrant (the "Report"), the undersigned each hereby certifies to the best of his knowledge, pursuant to section 906 of the Sarbanes-Oxely Act of 2002, that: 1. the Report complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934, as applicable; and 2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
By: By: President & Chief Executive Officer Treasurer CDC Nvest Tax Exempt Money Market Trust CDC Nvest Tax Exempt Money Market Trust - --------------------------------------- --------------------------------------- /s/ John T. Hailer /s/ Nicholas H. Palmerino - --------------------------------------- --------------------------------------- John T. Hailer Nicholas H. Palmerino Date: August 28, 2003 Date: August 28, 2003
A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the CDC Nvest Tax Exempt Money Market Trust, and will be retained by the CDC Nvest Tax Exempt Money Market Trust and furnished to the Securities and Exchange Commission (the "Commission") or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----