N-CSR 1 cmftmf.htm ANNUAL REPORT Scudder Investments 

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549

                                   FORM N-CSR

Investment Company Act file number 811-04760

                              SCUDDER ADVISOR FUNDS
                       ----------------------------------
               (Exact Name of Registrant as Specified in Charter)

                   One South Street, Baltimore, Maryland 21202
                   -------------------------------------------
               (Address of Principal Executive Offices) (Zip Code)

        Registrant's Telephone Number, including Area Code: (617) 295-2663
                                                            --------------

                               Salvatore Schiavone
                             Two International Place
                           Boston, Massachusetts 02110
                     ---------------------------------------
                     (Name and Address of Agent for Service)

Date of fiscal year end:        12/31

Date of reporting period:       12/31/03



ITEM 1.  REPORT TO STOCKHOLDERS


Cash Management Fund Investment

Treasury Money Fund Investment

Annual Report
to Shareholders

December 31, 2003


Contents


<Click Here> Portfolio Management Review

Funds

<Click Here> Financial Statements

<Click Here> Financial Highlights

<Click Here> Notes to Financial Statements

<Click Here> Report of Independent Auditors

<Click Here> Tax Information

<Click Here> Trustees and Officers

Portfolios

<Click Here> Investment Portfolios

<Click Here> Financial Statements

<Click Here> Financial Highlights

<Click Here> Notes to Financial Statements

<Click Here> Report of Independent Auditors

<Click Here> Account Management Resources


This report must be preceded or accompanied by a prospectus. To obtain a prospectus for any of our funds, refer to the Account Management Resources information provided in the back of this booklet. We advise you to consider the fund's objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the fund. Please read the prospectus carefully before you invest.

An investment in this fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. Please read this fund's prospectus for specific details regarding its risk profile.

Deutsche Asset Management is the marketing name in the US for the asset management activities of Deutsche Bank AG, Deutsche Investment Management Americas Inc., Deutsche Asset Management Inc., Deutsche Asset Management Investment Services Ltd., Deutsche Bank Trust Company Americas and Scudder Trust Company.

Fund shares are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Fund shares involve investment risk, including possible loss of principal.


Portfolio Management Review


Investment Funds: A Team Approach to Investing

Deutsche Asset Management, Inc. ("DeAM, Inc." or the "Advisor"), which is part of Deutsche Asset Management, is the investment advisor for Scudder Cash Management Portfolio and Scudder Treasury Money Portfolio, in which the funds invest all of their assets, respectively. DeAM, Inc. provides a full range of investment advisory services to institutional and retail clients. DeAM, Inc. is also responsible for selecting brokers and dealers and for negotiating brokerage commissions and dealer charges.

Deutsche Asset Management is a global asset management organization that offers a wide range of investing expertise and resources. This well-resourced global investment platform brings together a wide variety of experience and investment insight across industries, regions, asset classes and investing styles.

DeAM, Inc. is an indirect, wholly owned subsidiary of Deutsche Bank AG. Deutsche Bank AG is a major global banking institution that is engaged in a wide range of financial services, including investment management, mutual funds, retail, private and commercial banking, investment banking and insurance.

A group of investment professionals is responsible for the day-to-day management of the portfolios.

In the following interview, Lead Portfolio Managers Geoffrey Gibbs and Darlene M. Rasel discuss the market environment and their team's approach to managing the Scudder Cash Management Portfolio and the Scudder Treasury Money Portfolio, respectively, during the 12-month period ended December 31, 2003.

Q: How did the funds perform over the annual period?

A: Over the 12 months ended December 31, 2003, Cash Management Fund Investment's seven-day annualized yield declined from 0.77% to 0.51%. Treasury Money Fund Investment's seven-day annualized yield declined from 0.67% to 0.30%. In both cases, such yield changes primarily reflect the ripple effect of the Federal Reserve Board's 50-basis-point (i.e., one-half of a percentage point) interest rate cut on November 6, 2002 and its 25-basis-point (i.e., one-quarter of a percentage point) interest rate cut on June 25, 2003. For the 12-month period ended December 31, 2003, Cash Management Fund returned 0.51%, compared with the 0.49% average total return of the iMoneyNet First Tier Retail Money Funds Average. Treasury Money Fund returned 0.41% for the annual period, compared to the 0.42% average total return of the iMoneyNet U.S. Treasury and Repo Retail Money Funds Average.1

1 Money Fund Report Averages, a service of iMoneyNet, Inc., are averages for categories of similar money market funds.

Performance is historical and does not guaranteed future results. Current performance may be lower or higher than the performance data quoted. Performance includes reinvestment of all distributions. Returns during part or all of the periods shown reflect a fee and/or expense waiver. Without this waiver, returns would have been lower and any rankings/ratings might have been less favorable. The yield quotation more closely reflects the current earnings of the fund than the total return quotation. Please call the Service Center at 1-800-730-1313 for the product's most recent month-end performance.

Q: What were the major factors affecting money market activity during the year?

A: Federal Reserve Board policy and the US economy continued to have a major effect on the backdrop to money market activity.

As 2003 began, investors demonstrated enthusiasm for President Bush's new economic growth initiative. However, as concerns about the war with Iraq heightened and company managements reported a subdued outlook for first-quarter corporate earnings, volatility remained high in the financial markets. One result was a flight into short-term US Treasuries.

Economic and political conditions improved during the second quarter. Corporate earnings generally exceeded expectations. The government's tax cut was widely perceived to offer stimulus to the economy. The conclusion of active military operations in Iraq provided a welcome sigh of relief. On May 6, the Federal Reserve Board kept the targeted federal funds rate2 unchanged at 1.25% but indicated it would maintain its accommodative monetary policy, as it believed the probability of deflation exceeded that of inflation over the next few quarters. Thus, money market yields continued to fall.

2 The federal funds rate is the interest rate banks charge each other for overnight loans and is a closely watched indicator of US Federal Reserve Board monetary policy.

By the June 25 meeting of the Federal Reserve Board, the financial markets were anticipating a minimum of a 25-basis-point interest rate cut, with a likely probability of 50 basis points. The Federal Reserve Board's decision to lower the federal funds rate by only a quarter of a point to 1.00% was greeted with open disappointment. The broad fixed-income markets sold off dramatically, and money market yields rose significantly by July, especially at the longer end of the money market yield curve.

After peaking in late August to early September, money market yields declined somewhat by the end of September. However, as economic news continued to improve during the fourth quarter, the money market yield curve steepened again. Such positive economic news included rebounding industrial production, continued strength in the housing market, a slowly improving labor market and an uptick in capital spending. The Federal Reserve Board meeting in December proved uneventful, leading the market to speculate that the Federal Reserve Board would likely wait to see above-trend economic growth before actually reversing course. At the end of the year, most investors believed that there would be no official increase in interest rates until well into 2004.

Q: In light of recent market conditions, what has been Cash Management Fund Investment's strategy?

A: We were able to produce competitive yields in the fund for the annual period. Given the uncertainty in the financial markets and in the US economy, we maintained an aggressive average weighted maturity, generally in the 50- to 55-day range, for most of the annual period. As the period began, we maintained a "barbell strategy," whereby we purchased short-dated paper for liquidity and longer-term paper to add duration and to take advantage of the higher yields available at the long end of the money market yield curve. When the yield curve flattened in March, we temporarily adjusted the strategy by focusing purchases at the intermediate portion of the money market yield curve.

During the second quarter, the fund benefited from the fact that we were not of the opinion that the Federal Reserve Board's next interest rate cut would be 50 basis points. In the run-up to the Federal Reserve Board's June meeting, we held off buying securities with longer-term maturities. While this led to a temporary reduction in the weighted average maturity of the fund to below 50 days, the decision proved correct. After the Federal Reserve Board's action, rates moved higher, and we took advantage of the higher yields and steeper yield curve by adding duration through the purchase once again of longer-dated securities.

Short-term interest rates remained historically low through the second half of the year. However, we generally maintained the weighted average maturity of the fund toward the longer end of its permitted range to take advantage of the higher yields available as the economy continued to show signs of strength and the money market yield curve grew steeper in response. Toward the end of the fiscal year, we began employing a "laddered" portfolio structure. A laddered portfolio is one whereby maturities are staggered so that bonds in the portfolio come due periodically. This move was made in an effort both to reduce the volatility and risks associated with interest rate movements and to diversify the fund's holdings.

Another successful strategy for the fund was adding callable federal agency securities throughout the period. These securities offered an attractive yield pickup over securities with no call feature and, since they are guaranteed by the US government, enhanced the fund's average credit quality as well. Toward the end of the year, we began looking at a variety of instruments, including agencies, corporate debt and Treasuries. Callable securities3 are most attractive when interest rates are holding steady because there is no incentive for the issuer to call them in and the issuer cannot save money by reissuing at lower rates. In addition, callable securities typically offer a yield premium over noncallable issues. Given that interest rates began to trend upward, we purchased fewer callable securities. Still, our preference for high-credit quality issuers in the portfolio did not change throughout the period.

3 Callable securities are redeemable by the issuer at a premium price before the scheduled maturity date. Money market instruments and bonds are usually called when interest rates fall so significantly that the issuer can save money by floating new debt securities at lower rates.

Q: What was your strategy in Treasury Money Fund Investment?

During the first quarter, we maintained larger positions in longer-dated US Treasury bills. Then, during the second quarter, the fund benefited from the fact that we were not of the opinion that the Federal Reserve Board's next interest rate cut would be 50 basis points. In the run-up to the Federal Reserve Board's June meeting, we held off buying securities with longer-term maturities, focusing instead on purchases of overnight repurchase agreements. While this led to a temporary reduction in the weighted average maturity of the fund, the decision proved correct. After the Federal Reserve Board's action, rates moved higher, and we took advantage of the higher yields and steeper yield curve by adding duration through the purchase once again of longer-dated securities.

During the third quarter, there was an increase in the supply of short-term Treasury securities as the US government increased issuance to help pay for the growing national debt. As a result, short-term Treasury yields rose, moving closer to the federal funds rate of 1.00%. We were able to take advantage of these higher yields available by extending the weighted average maturity of the fund. Toward the end of the year, we pursued a "barbell strategy," whereby we bought very short-term repurchase agreements as well as longer-term Treasury securities. For most of the annual period, we kept the fund's weighted average maturity in the 30- to 65-day range.

Q: Do you anticipate any change in your management strategies?

A: We intend to maintain our conservative investment strategies in both funds. We will seek to provide high current income consistent with liquidity and capital preservation.

The views expressed in this report reflect those of the portfolio managers only through the end of the period of the report as stated on the cover. The managers' views are subject to change at any time based on market and other conditions and should not be construed as a recommendation.


Financial Statements


Statements of Assets and Liabilities as of December 31, 2003

Assets

Cash Management Fund Investment

Treasury Money Fund Investment

Investment in Portfolioa
 $ 135,783,283 $ 215,158,947
Other assets
 16,917 15,310
Total assets
 135,800,200 215,174,257
Liabilities
Dividends payable
 53,262 15,318
Payable for Fund shares redeemed
 7,500 479
Accrued administrator service fee
 68,167 56,940
Other accrued expenses and payables
 23,343 26,040
Total liabilities
 152,272 98,777
Net assets, at value

$ 135,647,928

$ 215,075,480

Net Assets
Net assets consist of:
Undistributed net investment income
 16,986 13,415
Paid-in capital
 135,630,942 215,062,065
Net assets, at value

$ 135,647,928

$ 215,075,480

Net Asset Value

Net assets applicable to shares outstanding
 $ 135,647,928 $ 215,075,480
Shares outstanding ($.001 par value per share, unlimited number of shares authorized)
 135,670,759 215,062,544
Net Asset Value, offering and redemption price per share

$ 1.00

$ 1.00


a Investment in the Scudder Cash Management Portfolio and Scudder Treasury Money Portfolio, respectively.

The accompanying notes are an integral part of the financial statements.



Statements of Operations for the year ended December 31, 2003

Investment Income

Cash Management Fund Investment

Treasury Money Fund Investment

Net investment income allocated from the Scudder Cash Management Portfolio and Scudder Treasury Money Portfolio, respectively:
Interest
 $ 1,905,849 $ 2,335,301
Dividends
 36,588 58,816
Expenses
 (282,064)a (417,025)b
Net investment income allocated from the Scudder Cash Management Portfolio and Scudder Treasury Money Portfolio, respectively
 1,660,373 1,977,092
Expenses:
Administrator service fee
 860,967 1,144,124
Auditing
 19,890 21,511
Legal
10,577 14,104
Trustees' fees and expenses
 4,871 4,005
Reports to shareholders
 - 9,312
Registration fees
 10,478 34,120
Other
 1,220 3,080
Total expenses, before expense reductions
 908,003 1,230,256
Expense reductions
 (16,050) (87,100)
Total expenses, after expense reductions
 891,953 1,143,156
Net investment income

768,420

833,936

Net realized gain (loss) from investments
 4,372 1,940
Net increase (decrease) in net assets resulting from operations

$ 772,792

$ 835,876


a For the year ended December 31, 2003, the Advisor to the Scudder Cash Management Portfolio waived fees, of which $42,625 was allocated to the Cash Management Fund Investment on a pro-rated basis.
b For the year ended December 31, 2003, the Advisor to the Scudder Treasury Money Portfolio waived fees, of which $28,620 was allocated to the Treasury Money Fund Investment on a pro-rated basis.

The accompanying notes are an integral part of the financial statements.



Statement of Changes in Net Assets - Cash Management Fund Investment

Increase (Decrease) in Net Assets

Years Ended December 31,

2003

2002

Operations:
Net investment income
$ 768,420 $ 2,505,635
Net realized gain (loss) on investment transactions
 4,372 4,529
Net increase (decrease) in net assets resulting from operations
 772,792 2,510,164
Distributions to shareholders from:
Net investment income
 (798,461) (2,491,658)
Fund share transactions:
Proceeds from shares sold
 1,777,659,537 2,444,032,150
Reinvestment of distributions
 129,841 591,917
Cost of shares redeemed
 (1,799,824,193) (2,475,796,888)
Net increase (decrease) in net assets from Fund share transactions
 (22,034,815) (31,172,821)
Increase (decrease) in net assets
(22,060,484) (31,154,315)
Net assets at beginning of period
 157,708,412 188,862,727
Net assets at end of period (including undistributed net investment income of $16,986 and $43,963, respectively)

$ 135,647,928

$ 157,708,412

Other Information
Shares outstanding at beginning of period
 157,705,574 188,878,394
Shares sold
 1,777,659,537 2,444,032,151
Shares issued to shareholders in reinvestment of distributions
 129,841 591,917
Shares redeemed
 (1,799,824,193) (2,475,796,888)
Net increase (decrease) in Fund shares
 (22,034,815) (31,172,820)
Shares outstanding at end of period
 135,670,759 157,705,574

The accompanying notes are an integral part of the financial statements.



Statement of Changes in Net Assets - Treasury Money Fund Investment

Increase (Decrease) in Net Assets

Years Ended December 31,

2003

2002

Operations:
Net investment income
 $ 833,936 $ 2,578,292
Net realized gain (loss) on investment transactions
 1,940 27,684
Net increase (decrease) in net assets resulting from operations
 835,876 2,605,976
Distributions to shareholders from:
Net investment income
 (844,051) (2,598,587)
Net realized gains
 - (50,841)
Fund share transactions:
Proceeds from shares sold
 2,726,617,256 3,347,200,798
Reinvestment of distributions
 607,926 1,762,386
Cost of shares redeemed
 (2,725,680,380) (3,420,383,513)
Net increase (decrease) in net assets from Fund share transactions
 1,544,802 (71,420,329)
Increase (decrease) in net assets
1,536,627 (71,463,781)
Net assets at beginning of period
 213,538,853 285,002,634
Net assets at end of period (including undistributed net investment income of $13,415 and $21,590, respectively)

$ 215,075,480

$ 213,538,853

Other Information
Shares outstanding at beginning of period
 213,517,266 284,937,592
Shares sold
 2,726,617,252 3,347,200,798
Shares issued in reinvestment of distributions
 607,926 1,762,386
Shares redeemed
 (2,725,679,900) (3,420,383,510)
Net increase (decrease) in Fund shares
 1,545,278 (71,420,326)
Shares outstanding at end of period
 215,062,544 213,517,266


The accompanying notes are an integral part of the financial statements.


Financial Highlights


Cash Management Fund Investment

Years Ended December 31,

2003

2002

2001

2000

1999

Selected Per Share Data
Net asset value, beginning of period

$ 1.00

$ 1.00

$ 1.00

$ 1.00

$ 1.00

Income from investment operations:
Net investment income
.005 .011 .04 .06 .04
Net realized and unrealized gain (loss) on investment transactionsa
- - - - -

Total from investment operations

.005 .011 .04 .06 .04
Less distributions from:
Net investment income
(.005) (.011) (.04) (.06) (.04)
Net asset value, end of period

$ 1.00

$ 1.00

$ 1.00

$ 1.00

$ 1.00

Total Return (%)b
 .51 1.14 3.63 5.87 4.58
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)
 136 158 189 244 154
Ratio of expenses before expense reductions, including expenses allocated from Scudder Cash Management Portfolio (%)
 .79 .78 .78 .79 .78
Ratio of expenses after expense reductions, including expenses allocated from Scudder Cash Management Portfolio (%)
 .75 .75 .75 .75 .75
Ratio of net investment income (%)
 .49 1.10 3.60 5.75 4.42
a Amount is less than $.0005 per share.
b Total returns would have been lower had certain expenses not been reduced.



Treasury Money Fund Investment

Years Ended December 31,

2003

2002

2001

2000

1999

Selected Per Share Data
Net asset value, beginning of period

$ 1.00

$ 1.00

$ 1.00

$ 1.00

$ 1.00

Income from investment operations:
Net investment income
.004 .010 .03 .05 .04
Net realized and unrealized gain (loss) on investment transactionsa
- - - - -

Total from investment operations

.004 .010 .03 .05 .04
Less distributions from:
Net investment income
(.004) (.010) (.03) (.05) (.04)
Net realized gain on investment transactions
-a -a - - -
Net asset value, end of period

$ 1.00

$ 1.00

$ 1.00

$ 1.00

$ 1.00

Total Return (%)b
 .41 1.04 3.33 5.60 4.32
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)
 215 214 285 336 561
Ratio of expenses before expense reductions, including expenses allocated from Scudder Treasury Money Portfolio (%)
 .81 .78 .79 .78 .77
Ratio of expenses after expense reductions, including expenses allocated from Scudder Treasury Money Portfolio (%)
 .75 .75 .75 .75 .75
Ratio of net investment income (%)
 .40 1.03 3.25 5.43 4.25
a Amount is less than $.0005.
b Total return would have been lower had certain expenses not been reduced.


Notes to Financial Statements


Note 1-Organization and Significant Accounting Policies

A. Organization

Scudder Advisor Funds (formerly BT Investment Funds) (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "1940 Act") as an open-end, diversified, management investment company organized as a Massachusetts business trust. Cash Management Fund Investment and Treasury Money Fund Investment (each a "Fund" and collectively, the "Funds") are two of several funds the Trust offers to investors.

The Funds seek to achieve their investment objectives by investing substantially all of their assets in the Scudder Cash Management Portfolio and the Scudder Treasury Money Portfolio, respectively (each a "Portfolio" and collectively, the "Portfolios"), each an open-end management investment company registered under the 1940 Act. Details concerning each Portfolio's investment objectives and policies and the risk factors associated with each Portfolio's investments are described in their respective Prospectuses and Statements of Additional Information.

On December 31, 2003 the Cash Management Fund Investment owned approximately 1% of the Scudder Cash Management Portfolio and the Treasury Money Fund Investment owned approximately 26% of the Scudder Treasury Money Portfolio. The financial statements of the Portfolios, including the Investment Portfolios, are contained elsewhere in this report and should be read in conjunction with the Funds' financial statements.

Each Fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Fund in the preparation of its financial statements.

B. Security Valuation

Each Fund determines the valuation of its investment in its Portfolio by multiplying its proportionate ownership of the Portfolio by the total value of the Portfolio's net assets.

Each Portfolio's policies for determining the value of its net assets are discussed in each Portfolio's Financial Statements, which accompany this report.

C. Federal Income Taxes

Each Fund's policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable income to its shareholders. Accordingly, each Fund paid no federal income taxes and no federal income tax provision was required.

D. Distribution of Income

Net investment income of each Fund is declared as a daily dividend and is distributed to shareholders monthly.

Permanent book and tax differences relating to shareholder distributions will result in reclassifications to paid in capital. Temporary book and tax differences will reverse in a subsequent period. There were no significant book to tax differences for the Funds.

At December 31, 2003, the Funds' components of distributable earnings (accumulated losses) on a tax basis were as follows:


Cash Management Fund Investment

Treasury Money Fund Investment

Undistributed ordinary income*
 $ 16,999 $ 13,415

In addition, the tax character of distributions paid to shareholders by the Funds is summarized as follows:


Years Ended December 31,


2003

2002

Cash Management Fund Investment
Distributions from ordinary income*
$ 798,461 $ 2,491,658
Treasury Money Fund Investment
Distributions from ordinary income*
$ 844,051 $ 2,649,428

* For tax purposes short-term capital gains distributions are considered ordinary income distributions.

E. Other

Each Fund receives a daily allocation of each respective Portfolio's net investment income and net realized gains and losses in proportion to its investment in the respective Portfolio. Expenses directly attributed to a fund are charged to that Fund, while expenses that are attributed to the Trust are allocated among the Funds in the Trust based on their respective net assets.

Note 2-Fees and Transactions with Affiliates

Deutsche Asset Management, Inc. ("DeAM, Inc." or the "Advisor") is the Advisor for each Portfolio and Investment Company Capital Corp. ("ICCC" or the "Administrator") is the Administrator for each Fund, both an indirect, wholly owned subsidiary of Deutsche Bank AG. Each Fund pays the Administrator an annual fee ("Administrator Service Fee") based on its average daily net assets which is calculated daily and paid monthly at the annual rate of 0.55%.

For the year ended December 31, 2003, the Administrator contractually agreed to waive its fees and/or reimburse expenses of each Fund to the extent necessary to maintain the annualized expenses of the Cash Management Fund Investment and Treasury Money Fund Investment each at 0.75% of their average daily net assets including expenses of the Scudder Cash Management Portfolio and the Scudder Treasury Money Portfolio, respectively.

Accordingly, for the year ended December 31, 2003, each Fund did not impose a portion of its Administrator Service Fee as follows:


Amount Aggregated

Amount Waived

Effective Rate

Cash Management Fund Investment
 $ 860,967 $ 16,050

.54%

Treasury Money Fund Investment
 $ 1,144,124 $ 87,100

.51%


Trustees' Fees and Expenses. As compensation for his or her services, each Independent Trustee receives an aggregate annual fee, plus a fee for each meeting attended (plus reimbursement for reasonable out-of-pocket expenses incurred in connection with his or her attendance at board and committee meetings) from each Fund in the Fund Complex for which he or she serves. In addition, the Chairman of the Fund Complex's Audit Committee receives an annual fee for his services. Payment of such fees and expenses is allocated among all such Funds described above in direct proportion to their relative net assets.

Note 3-Concentration of Ownership

From time to time each Fund may have a concentration of several shareholders holding a significant percentage of shares outstanding. Investment activities of these shareholders could have a material impact on each Fund.

At December 31, 2003, there was one shareholder who held approximately 89% of the outstanding shares of the Cash Management Fund Investment and there were three shareholders who held approximately 52% of the outstanding shares of the Treasury Money Fund Investment.


Report of Independent Auditors


To the Trustees of Scudder Advisor Funds (formerly BT Investment Funds) and Shareholders of Cash Management Fund Investment and Treasury Money Fund Investment:

In our opinion, the accompanying statements of assets and liabilities 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 Cash Management Fund Investment and Treasury Money Fund Investment (hereafter referred to as the "Funds") at December 31, 2003, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated therein, 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 audits 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 provide a reasonable basis for our opinion.

Boston, Massachusetts
February 27, 2004

PricewaterhouseCoopers LLP



Tax Information


Please contact a tax advisor if you have questions about federal or state income tax laws, or on how to prepare your tax returns. If you have specific questions about your account, please call 1-800-621-1048.


Trustees and Officers


The following individuals hold the same position with the Funds and the Scudder Cash Management Portfolio and the Scudder Treasury Money Portfolio.

Independent Trustees

Name, Date of Birth, Position with the Fund and Length of Time Served1,2
Business Experience and Directorships
During the Past 5 Years
Number of Funds in the Fund Complex Overseen
Richard R. Burt
2/3/47
Trustee since 2002
 Chairman, Diligence LLC (international information-collection and risk-management firm) (September 2002 to present); Chairman, IEP Advisors, Inc. (July 1998 to present); Chairman of the Board, Weirton Steel Corporation3 (April 1996 to present); Member of the Board, Hollinger International, Inc.3 (publishing) (September 1995 to present), HCL Technologies Limited (information technology) (April 1999 to present), UBS Mutual Funds (formerly known as Brinson and Mitchell Hutchins families of funds) (registered investment companies) (September 1995 to present); and Member, Textron Inc.3 International Advisory Council (July 1996 to present). Formerly, Partner, McKinsey & Company (consulting) (1991-1994) 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); Member of the Board, Homestake Mining3 (mining and exploration) (1998-February 2001), Archer Daniels Midland Company3 (agribusiness operations) (October 1996-June 2001) and Anchor Gaming (gaming software and equipment) (March 1999-December 2001).

68

S. Leland Dill
3/28/30
Trustee since 1986 for the Funds and since 1990 for the Scudder Cash Management Portfolio and the Scudder Treasury Money Portfolio
 Trustee, Phoenix Zweig Series Trust (since September 1989), Phoenix Euclid Market Neutral Funds (since May 1998) (registered investment companies); Retired (since 1986). Formerly, Partner, KPMG Peat Marwick (June 1956-June 1986); Director, Vintners International Company Inc. (wine vintner) (June 1989-May 1992); Coutts (USA) International (January 1992-March 2000), Coutts Trust Holdings Ltd., Coutts Group (private bank) (March 1991-March 1999); General Partner, Pemco (investment company) (June 1979-June 1986).

66

Martin J. Gruber
7/15/37
Trustee since 1999
 Nomura Professor of Finance, Leonard N. Stern School of Business, New York University (since September 1964); Trustee, CREF (pension fund) (since January 2000); Director, Japan Equity Fund, Inc. (since January 1992), Thai Capital Fund, Inc. (since January 2000) and Singapore Fund, Inc. (since January 2000) (registered investment companies). Formerly, Trustee, TIAA (pension fund) (January 1996-January 2000).

66

Joseph R. Hardiman
5/27/37
Trustee since 2002
 Private Equity Investor (January 1997 to present); Director, Corvis Corporation3 (optical networking equipment) (July 2000 to present), Brown Investment Advisory & Trust Company (investment advisor) (February 2001 to present), The Nevis Fund (registered investment company) (July 1999 to present), and ISI Family of Funds (registered investment companies) (March 1998 to present). Formerly, Director, Circon Corp.3 (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); Chief Operating Officer of Alex. Brown & Sons Incorporated (now Deutsche Bank Securities Inc.) (1985-1987); General Partner, Alex. Brown & Sons Incorporated (now Deutsche Bank Securities Inc.) (1976-1985).

66

Richard J. Herring
2/18/46
Trustee since 1999
 Jacob Safra Professor of International Banking and Professor, Finance Department, The Wharton School, University of Pennsylvania (since July 1972); Director, Lauder Institute of International Management Studies (since July 2000); Co-Director, Wharton Financial Institutions Center (since July 2000). Formerly, Vice Dean and Director, Wharton Undergraduate Division (July 1995-June 2000).

66

Graham E. Jones
1/31/33
Trustee since 2002
 Senior Vice President, BGK Realty, Inc. (commercial real estate) (since 1995); Trustee, 8 open-end mutual funds managed by Weiss, Peck & Greer (since 1985) and Trustee of 18 open-end mutual funds managed by Sun Capital Advisers, Inc. (since 1998).

66

Rebecca W. Rimel
4/10/51
Trustee since 2002
 President and Chief Executive Officer, The Pew Charitable Trusts (charitable foundation) (1994 to present); Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983 to present).

66

Philip Saunders, Jr.
10/11/35
Trustee since 1986 for the Funds and since 1990 for the Scudder Cash Management Portfolio and the Scudder Treasury Money Portfolio
 Principal, Philip Saunders Associates (economic and financial consulting) (since November 1988). Formerly, Director, Financial Industry Consulting, Wolf & Company (consulting) (1987-1988); President, John Hancock Home Mortgage Corporation (1984-1986); Senior Vice President of Treasury and Financial Services, John Hancock Mutual Life Insurance Company, Inc. (1982-1986).

66

William N. Searcy
9/03/46
Trustee since 2002
 Private investor (since October 2003); Trustee of 18 open-end mutual funds managed by Sun Capital Advisers, Inc. (since October 1998). Formerly, Pension & Savings Trust Officer, Sprint Corporation3 (telecommunications) (November 1989 to October 2003).

66

Robert H. Wadsworth
1/29/40
Trustee since 2002
 President, Robert H. Wadsworth Associates, Inc. (consulting firm) (May 1983 to present). Formerly, President and Trustee, Trust for Investment Managers (registered investment company) (April 1999-June 2002); President, Investment Company Administration, L.L.C. (January 1992*-July 2001); President, Treasurer and Director, First Fund Distributors, Inc. (June 1990-January 2002); Vice President, Professionally Managed Portfolios (May 1991-January 2002) and Advisors Series Trust (October 1996-January 2002) (registered investment companies).
* Inception date of the corporation which was the predecessor to the L.L.C.

69


Interested Trustee

Name, Date of Birth, Position with the Fund and Length of Time Served1,2
Business Experience and Directorships
During the Past 5 Years
Number of Funds in the Fund Complex Overseen
Richard T. Hale4
7/17/45
Chairman since 2002 and
Trustee since 1999
 Managing Director, Deutsche Investment Management Americas Inc. (2003-present); Managing Director, Deutsche Bank Securities Inc. (formerly Deutsche Banc Alex. Brown Inc.) and Deutsche Asset Management (1999 to present); Director and President, Investment Company Capital Corp. (registered investment advisor) (1996 to present); Director, Deutsche Global Funds, Ltd. (2000 to present), CABEI Fund (2000 to present), North American Income Fund (2000 to present) (registered investment companies); Director, Scudder Global Opportunities Fund (since 2003); Director/Officer Deutsche/Scudder Mutual Funds (various dates); President, Montgomery Street Income Securities, Inc. (2002 to present) (registered investment companies); Vice President, Deutsche Asset Management, Inc. (2000 to present). Formerly, Director, ISI Family of Funds (registered investment companies; 4 funds overseen) (1992-1999).

201


Officers

Name, Date of Birth,
Position with the Fund and Length of Time Served1,2
Business Experience and Directorships
During the Past 5 Years
Richard T. Hale4
7/17/45
Chief Executive Officer since 2003
 See information presented under Interested Trustee.
Brenda Lyons5
2/21/63
President since 2003
 Managing Director, Deutsche Asset Management.
Kenneth Murphy5
10/13/63
Vice President and Anti-Money Laundering Compliance Officer since 2002
 Vice President, Deutsche Asset Management (September 2000-present). Formerly, Director, John Hancock Signature Services (1992-2000).
Bruce A. Rosenblum
9/14/60
Vice President since 2003
Assistant Secretary since 2002
 Director, Deutsche Asset Management.
Charles A. Rizzo5
8/5/57
Treasurer and Chief Financial Officer since 2002
 Director, Deutsche Asset Management (April 2000 to present); Formerly, Vice President and Department Head, BT Alex. Brown Incorporated (now Deutsche Bank Securities Inc.) (1998-1999); Senior Manager, Coopers & Lybrand L.L.P. (now PricewaterhouseCoopers LLP) (1993-1998).
Salvatore Schiavone5
11/03/65
Assistant Treasurer since 2003
 Director, Deutsche Asset Management.
Lucinda H. Stebbins5
11/19/45
Assistant Treasurer since 2003
 Director, Deutsche Asset Management.
Kathleen Sullivan D'Eramo5
1/25/57
Assistant Treasurer since 2003
 Director, Deutsche Asset Management.
John Millette5
8/23/62
Secretary since 2003
 Director, Deutsche Asset Management.
Daniel O. Hirsch
3/27/54
Assistant Secretary since 2003
 Managing Director, Deutsche Asset Management (2002-present) and Director, Deutsche Global Funds Ltd. (2002-present). Formerly, Director, Deutsche Asset Management (1999-2002); Principal, BT Alex. Brown Incorporated (now Deutsche Bank Securities Inc.) (1998-1999); Assistant General Counsel, United States Securities and Exchange Commission (1993-1998).
Caroline Pearson5
4/01/62
Assistant Secretary since 2002
 Managing Director, Deutsche Asset Management.

1 Unless otherwise indicated, the mailing address of each Trustee and Officer with respect to fund operations is One South Street, Baltimore, MD 21202.
2 Length of time served represents the date that each Trustee or Officer first began serving in that position with Scudder Advisor Funds of which these funds are each a series and Scudder Cash Management Portfolio and Scudder Treasury Money Portfolio.
3 A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934.
4 Mr. Hale is a Trustee who is an "interested person" within the meaning of Section 2(a)(19) of the 1940 Act. Mr. Hale is Vice President of Deutsche Asset Management, Inc. and a Managing Director of Deutsche Asset Management, the US asset management unit of Deutsche Bank AG and its affiliates.
5 Address: Two International Place, Boston, Massachusetts.

The funds' Statement of Additional Information includes additional information about the funds' Trustees. To receive your free copy of the Statement of Additional Information, call toll-free: 1-800-621-1048.


Investment Portfolio as of December 31, 2003


Scudder Cash Management Portfolio

Principal Amount ($)

Value ($)



Certificates of Deposit and Bank Notes 15.9%

Abbey National Treasury Services PLC, 1.25%, 1/5/2004
75,000,000
 75,000,000
Alliance & Leicester PLC, 1.115%, 4/2/2004
55,000,000
 55,000,000
BNP Paribas, 1.39%, 8/5/2004
32,000,000
 32,025,743
Canadian Imperial Bank of Commerce, 1.25%, 3/10/2004
50,000,000
 49,999,290
Credit Agricole Indosuez SA, 1.1%, 7/6/2004
50,000,000
 50,000,000
Credit Lyonnais SA, 1.16%, 4/23/2004
50,000,000
 50,000,000
Danske Bank AS, 1.11%, 7/19/2004
50,000,000
 49,997,254
DEPFA Bank Europe PLC, 1.11%, 1/20/2004
125,000,000
 125,000,000
Fifth Third Bank, 0.75%, 1/2/2004
183,438,654
 183,438,654
First Tennessee Bank NA, 1.08%, 1/12/2004
30,000,000
 29,999,908
HBOS Treasury Services, PLC:


1.15%, 4/27/2004

20,000,000
 20,000,000

1.16%, 3/23/2004

100,000,000
 100,000,000
HSBC Bank USA, 1.11%, 7/19/2004
50,000,000
 49,997,254
Landesbank Baden Wurttemberg, 1.33%, 8/10/2004
55,000,000
 55,026,673
Landesbank Hessen-Thuringen Girozentrale:


1.22%, 2/17/2004

20,000,000
 20,001,902

1.27%, 9/13/2004

100,000,000
 99,983,588

1.31%, 8/6/2004

30,000,000
 30,012,346
Natexis Banque Populaires:


1.15%, 4/20/2004

35,000,000
 35,000,000

1.2%, 5/10/2004

100,000,000
 100,000,000
National Australia Bank, 1.245%, 8/31/2004
125,000,000
 125,000,000
Norddeutsche Landesbank Girozentrale, 1.1%, 7/14/2004
50,000,000
 49,997,322
Northern Rock PLC:


1.1%, 1/13/2004

50,000,000
 50,000,083

1.115%, 2/20/2004

25,000,000
 25,000,000
Societe Generale, 1.13%, 7/7/2004
70,000,000
 70,000,000
Toronto Dominion Bank:


1.05%, 1/22/2004

75,000,000
 75,000,000

1.325%, 3/22/2004

47,000,000
 46,999,478
Unicredito Italiano SpA:


1.095%, 1/14/2004

30,000,000
 30,000,000

1.12%, 1/20/2004

130,000,000
 130,000,000
Westdeutsche Landesbank AG:


1.06%, 1/5/2004

60,000,000
 60,000,000

1.41%, 9/3/2004

120,000,000
 120,008,077
Total Certificates of Deposit and Bank Notes (Cost $1,992,487,572)

1,992,487,572


US Government Sponsored Agencies 5.2%

Federal Home Loan Bank, 1.25%, 7/2/2004
35,000,000
 35,000,000
Federal Home Loan Mortgage Corp.:


1.11%*, 10/7/2005

100,000,000
 100,000,000

1.125%*, 11/7/2005

50,000,000
 50,000,000

1.405%, 11/15/2004

100,000,000
 100,000,000

3.25%, 1/15/2004

50,000,000
 50,043,257
Federal National Mortgage Association:


0.96%*, 1/29/2004

30,000,000
 30,000,000

1.45%, 9/14/2004

50,000,000
 50,000,000

1.48%**, 11/12/2004

25,000,000
 24,675,222

1.52%, 1/19/2005

50,000,000
 49,995,115

1.64%, 1/4/2005

90,000,000
 90,000,000

1.65%, 12/30/2004

75,000,000
 74,985,855
Total US Government Sponsored Agencies (Cost $654,699,449)

654,699,449


Floating Rate Notes* 36.8%

Abbey National Treasury Services PLC, 1.12%, 12/8/2004
130,000,000
 129,963,193
American Honda Finance Corp.:


1.1%, 7/9/2004

50,000,000
 50,000,000

144A, 1.12%, 10/22/2004

50,000,000
 50,000,000

1.14%, 3/8/2004

90,000,000
 90,000,000

144A, 1.32%, 5/10/2004

25,000,000
 25,016,414

144A, 1.32%, 8/23/2004

10,000,000
 10,013,289

1.53%, 11/15/2004

35,000,000
 35,122,128
Bank of America, 1.07%, 12/9/2004
260,000,000
 260,000,000
Bank of Scotland PLC, 144A, 1.14%, 5/28/2004
45,000,000
 45,024,011
Bayerische Landesbank Girozentrale, 1.18%, 3/8/2004
40,000,000
 40,004,523
Bayerische Landesbank New York, 1.101%, 8/25/2004
40,000,000
 39,999,918
Bear Stearns, 1.15%, 1/5/2004
400,000,000
 400,000,000
Beta Finance, Inc.:


144A, 1.104%, 5/17/2004

50,000,000
 49,999,067

1.115%, 2/6/2004

35,000,000
 34,999,827

144A, 1.118%, 9/15/2004

65,000,000
 64,995,357

144A, 1.125%, 10/12/2004

50,000,000
 49,996,138
Blue Heron Funding Ltd., 144A, 1.176%, 5/19/2004
24,000,000
 24,000,000
Canadian Imperial Bank of Commerce:


1.07%, 3/18/2004

25,000,000
 25,003,312

1.089%, 5/28/2004

220,000,000
 219,987,821

1.111%, 8/25/2004

200,000,000
 200,019,197

1.12%, 6/21/2004

45,000,000
 45,001,476

1.12%, 11/8/2004

50,000,000
 49,998,193

1.136%, 11/8/2004

55,000,000
 55,002,949
CC (USA), Inc., 144A, 1.096%, 7/26/2004
50,000,000
 49,998,590
CIT Group Holdings, Inc.:


1.261%, 7/26/2004

25,000,000
 25,022,972

1.4%, 3/9/2004

10,000,000
 10,004,878
Dorada Finance, Inc., 1.104%, 10/20/2004
20,000,000
 19,998,505
Eksportfinas AS, 1.11%, 6/11/2004
150,000,000
 149,993,748
General Electric Capital Corp.:


1.141%, 1/28/2004

40,000,000
 40,001,170

144A, 1.19%, 3/25/2004

15,000,000
 15,006,573

1.25%, 5/14/2004

19,000,000
 19,013,283

1.27%, 4/22/2004

15,000,000
 15,006,795

1.32%, 9/15/2004

119,050,000
 119,216,027

1.361%, 10/25/2004

60,000,000
 60,123,964
Goldman Sachs Group, Inc.:


1.12%, 4/6/2004

40,000,000
 40,000,000

1.12%, 9/3/2004

105,000,000
 105,000,000

1.17%, 1/23/2004

345,000,000
 345,000,000
HBOS Treasury Services, 144A, 1.176%, 8/23/2004
45,000,000
 45,023,368
IBM Corp., 1.296%, 9/10/2004
30,000,000
 30,035,492
J.P. Morgan Chase & Co., 1.305%, 2/5/2004
45,000,000
 45,007,622
Landesbank Baden Wurttemberg:


1.163%, 3/15/2004

10,000,000
 10,001,022

1.109%, 9/10/2004

40,000,000
 39,994,459
Marshall & Ilsley Corp., 1.11%, 11/2/2004
10,000,000
 9,999,119
Merrill Lynch & Co.:


1.401%, 6/28/2004

50,000,000
 50,069,258

1.47%, 1/13/2005

55,000,000
 55,205,846
Morgan Stanley:


1.04%, 2/26/2004

60,000,000
 60,000,000

1.04%, 7/23/2004

20,000,000
 20,000,000

1.04%, 8/27/2004

105,000,000
 105,000,000

1.45%, 12/13/2004

41,500,000
 41,626,834
Natexis Banque Populaires:


1.09%, 12/13/2004

40,000,000
 39,990,424

1.106%, 10/20/2004

60,000,000
 59,990,283
National City Bank of Cleveland:


1.15%, 7/19/2004

43,000,000
 43,009,495

1.251%, 4/26/2004

10,000,000
 10,004,487
Nationwide Building Society, 144A, 1.14%, 7/23/2004
20,000,000
 20,000,000
Norddeutsche Landesbank Girozentrale, 1.08%, 7/26/2004
95,000,000
 94,991,962
Nordea Bank Finland PLC, 1.092%, 12/20/2004
30,000,000
 29,994,333
Sheffield Receivables Corp., 1.106%, 2/25/2004
50,000,000
 50,000,000
Societe Generale:


1.06%, 11/30/2004

30,000,000
 29,992,395

1.103%, 12/6/2004

90,000,000
 89,976,654

1.105%, 12/10/2004

150,000,000
 149,950,176

1.11%, 10/1/2004

100,000,000
 99,977,316
Spintab AB, 1.161%, 1/23/2004
50,000,000
 50,001,091
Swedbank:


1.09%, 9/27/2004

25,000,000
 24,997,241

1.129%, 10/12/2004

125,000,000
 124,985,189
Westdeutsche Landesbank AG:


1.09%, 6/1/2004

150,000,000
 149,987,466

1.091%, 5/28/2004

30,000,000
 29,998,729
Total Floating Rate Notes (Cost $4,617,343,579)

4,617,343,579


Commercial Paper 32.4%

Aegon Funding Corp., 1.1%**, 1/22/2004
28,000,000
 27,982,033
Apreco, LLC:


1.1%**, 1/14/2004

80,000,000
 79,968,078

1.1%**, 1/22/2004

25,000,000
 24,983,958
Beta Finance, Inc., 1.11%**, 1/26/2004
25,000,000
 24,980,729
Caisse Nationale, 1.09%**, 3/9/2004
50,000,000
 49,897,056
CC (USA), Inc.:


1.15%**, 3/4/2004

34,000,000
 33,931,575

1.37%, 8/11/2004

40,000,000
 40,023,337
CIT Group Holdings, Inc.:


1.11%**, 1/16/2004

35,000,000
 34,983,813

1.11%**, 3/4/2004

20,000,000
 19,961,150

1.15%**, 1/20/2004

20,000,000
 19,987,861

1.16%**, 2/23/2004

40,000,000
 39,931,689

1.16%**, 3/1/2004

50,000,000
 49,903,750

1.18%**, 3/22/2004

25,000,000
 24,933,625
Compass Securitization LLC, 1.08%**, 1/15/2004
80,000,000
 79,966,186
CRC Funding, LLC:


1.1%**, 1/27/2004

40,000,000
 39,968,222

1.1%**, 1/29/2004

50,000,000
 49,957,222
Diageo Capital PLC, 1.09%**, 2/3/2004
25,000,000
 24,975,021
Dorada Finance, Inc.:


1.05%**, 1/15/2004

25,000,000
 24,989,792

1.09%**, 1/14/2004

125,000,000
 124,950,799

1.11%**, 1/8/2004

43,000,000
 42,990,719
GE Financial Assurance Holdings:


1.09%**, 1/15/2004

50,000,000
 49,978,806

1.1%**, 1/23/2004

43,000,000
 42,971,094
General Electric Capital International Funding, Inc., 1.09%**, 1/15/2004
50,000,000
 49,978,806
GIRO Funding US Corp., 1.09%**, 1/15/2004
12,000,000
 11,994,913
Goldman Sachs Group, Inc., 1.43%, 9/3/2004
105,000,000
 105,000,000
Grampian Funding LLC::


1.1%**, 3/12/2004

123,000,000
 122,733,158

1.18%**, 5/11/2004

120,000,000
 119,484,733
Greyhawk Funding LLC:


1.09%**, 2/13/2004

110,000,000
 109,856,786

1.1%**, 2/5/2004

100,000,000
 99,893,056

1.11%**, 2/9/2004

24,000,000
 23,971,140

1.11%**, 2/17/2004

50,000,000
 49,927,542

1.12%**, 1/21/2004

50,000,000
 49,968,889
HBOS Treasury Services, 1.05%**, 1/5/2004
40,000,000
 39,995,333
HSH Nordbank AG, 1.09%**, 2/5/2004
50,000,000
 49,947,014
International Lease Finance Corp., 1.06%**, 1/7/2004
60,000,000
 59,989,400
Irish Life & Permanent, 1.12%**, 1/28/2004
10,000,000
 9,991,600
Jupiter Securitization Corp.:


1.09%**, 1/26/2004

30,000,000
 29,977,292

1.09%**, 1/29/2004

30,000,000
 29,974,567

1.11%**, 1/6/2004

20,000,000
 19,996,917

1.12%**, 1/5/2004

40,960,000
 40,954,903
K2 (USA) LLC:


1.05%**, 1/12/2004

33,000,000
 32,989,413

1.13%**, 3/29/2004

31,000,000
 30,914,371

1.16%**, 2/27/2004

42,000,000
 41,922,860

1.17%**, 5/25/2004

40,000,000
 39,811,500
KBC Financial Products International Ltd., 1.09%**, 1/14/2004
95,000,000
 94,962,607
Kitty Hawk Funding Corp.:


1.1%**, 1/22/2004

48,024,000
 47,993,185

1.115%**, 3/22/2004

50,000,000
 49,874,563
Lake Constance Funding:


1.1%**, 1/14/2004

30,000,000
 29,988,083

1.1%**, 1/22/2004

29,300,000
 29,281,199

1.13%**, 3/4/2004

30,300,000
 30,240,082

1.13%**, 4/6/2004

45,500,000
 45,362,893

1.19%**, 6/4/2004

26,000,000
 25,866,786
Liberty Street Funding Co., 1.12%**, 3/12/2004
70,000,000
 69,845,378
Northern Rock PLC, 1.1%**, 2/9/2004
50,000,000
 49,940,417
Old Line Funding Corp., 1.08%**, 1/15/2004
60,000,000
 59,974,800
Perry Global Funding LLC:


1.09%**, 1/23/2004

50,000,000
 49,966,694

1.11%**, 3/12/2004

44,843,000
 44,744,831

1.13%**, 3/9/2004

24,000,000
 23,948,773
Private Export Funding, 1.065%**, 1/20/2004
25,000,000
 24,985,948
RWE AG, 1.575%**, 1/29/2004
25,000,000
 24,969,375
Scaldis Capital LLC:


1.1%**, 1/7/2004

50,000,000
 49,990,833

1.1%**, 1/15/2004

196,000,000
 195,916,156

1.1%**, 3/10/2004

40,000,000
 39,915,667

1.1%**, 3/11/2004

21,000,000
 20,955,083

1.11%**, 1/21/2004

70,000,000
 69,956,833

1.12%**, 4/12/2004

50,000,000
 49,841,333

1.15%**, 2/20/2004

14,474,000
 14,450,882

1.15%**, 3/2/2004

20,120,000
 20,080,794

1.16%**, 2/27/2004

35,208,000
 35,143,335

1.167%**, 4/21/2004

22,353,000
 22,272,839

1.167%**, 4/23/2004

27,906,000
 27,803,797
Sheffield Receivables Corp.:


1.09%**, 1/15/2004

35,000,000
 34,985,164

1.1%**, 1/6/2004

60,000,000
 59,990,833

1.1%**, 1/9/2004

60,000,000
 59,985,333

1.1%**, 1/20/2004

55,666,000
 55,633,683

1.1%**, 1/21/2004

116,170,000
 116,099,007

1.1%**, 1/23/2004

23,550,000
 23,534,169
Tango Finance Corp., 1.13%**, 3/25/2004
25,000,000
 24,934,083
Tesco PLC, 1.08%**, 2/4/2004
28,147,000
 28,118,290
Three Rivers Funding Corp., 1.12%**, 1/20/2004
95,242,000
 95,185,701
Transamerica Finance Corp., 1.13%**, 1/15/2004
63,250,000
 63,222,205
Westpac Capital Corp., 1.195%**, 6/3/2004
50,000,000
 49,744,403
Windmill Funding Corp.:


1.09%**, 1/20/2004

25,000,000
 24,985,618

1.12%**, 1/28/2004

40,000,000
 39,966,400
Total Commercial Paper (Cost $4,046,148,763)

4,046,148,763


Short-Term Notes 0.5%

Grand Metropolitan Investment Corp., 1.136%**, 1/6/2004
27,080,000
 27,075,753
Wells Fargo, 6.625%, 7/15/2004
37,003,000
 38,082,062
Total Short-Term Notes (Cost $65,157,815)

65,157,815


Funding Agreements 4.4%

Allstate Life Insurance, 1.253%, 7/1/2004
125,000,000
 125,000,000
General Electric Capital Assurance Co.:


1.258%, 3/1/2004

20,000,000
 20,000,000

1.258%, 9/1/2004

60,000,000
 60,000,000
General Electric Capital Corp., 1.25%, 1/25/2005
75,000,000
 75,000,000
New York Life Insurance, 1.24%, 9/21/2004
60,000,000
 60,000,000
Security Life Denver:


1.17%, 1/2/2004

25,000,000
 25,000,000

1.25%, 7/19/2004

60,000,000
 60,000,000

1.26%, 1/29/2004

50,000,000
 50,000,000
Travelers Insurance Co.:


1.23%, 4/2/2004

30,000,000
 30,000,000

1.239%, 1/27/2004

50,000,000
 50,000,000
Total Funding Agreements (Cost $555,000,000)

555,000,000


Money Market Funds 0.3%

AIM Liquid Assets Portfolio, 0.99%*** (Cost $37,542,850)
37,542,850

37,542,850


Repurchase Agreements 4.5%

JP Morgan Securities, Inc., 1.03%, dated 12/31/2003, to be repurchased at $257,859,124 on 1/2/2004 (b)
257,844,370
 257,844,370
Morgan Stanley & Co., 1.04%, dated 12/31/2003, to be repurchased at $250,014,444 on 1/2/2004 (c)
250,000,000
 250,000,000
Goldman Sachs & Co., 0.99%, dated 12/31/2003, to be repurchased at $61,030,986 on 1/2/2004 (d)
61,027,629
 61,027,629
Total Repurchase Agreements (Cost $568,871,999)

568,871,999

Total Investment Portfolio - 100.0% (Cost $12,537,252,027) (a)

12,537,252,027


* Floating rate notes are securities whose yields vary with a designated market index or market rate, such as the coupon-equivalent of the US Treasury bill rate. These securities are shown at their current rate as of December 31, 2003.
** Annualized yield at the time of purchase; not a coupon rate.
*** Rate shown is annualized seven-day yield at period end.
(a) Cost for federal income tax purposes was $12,537,252,027.
(b) Collateralized by:

Principal Amount ($)

Security

Rate (%)

Maturity Date

Collateral Value ($)


14,206,886
Federal National Mortgage Association Strip
 0.00
 7/1/2033
 3,550,514
1,625,420
Federal National Mortgage Association Strip
 0.00
 4/1/2023
 292,462
2,255,644
Federal National Mortgage Association Strip
 0.00
 5/1/2023
 413,015
8,839,303
Federal National Mortgage Association Strip
 0.00
 2/1/2024
 7,771,462
321,446
Federal National Mortgage Association Strip
 0.00
 11/1/2030
 51,726
3,647,775
Federal National Mortgage Association Strip
 0.00
 6/1/2031
 626,710
1,420,142
Federal National Mortgage Association Strip
 0.00
 11/1/2031
 248,766
915,127
Federal National Mortgage Association Strip
 0.00
 1/1/2032
 169,045
6,549,256
Federal National Mortgage Association Strip
 0.00
 2/1/2032
 1,177,740
20,151,558
Federal National Mortgage Association Strip
 0.00
 2/1/2032
 17,477,748
360,206
Federal National Mortgage Association Strip
 0.00
 4/1/2032
 65,442
8,849,443
Federal National Mortgage Association Strip
 0.00
 1/1/2033
 2,089,681
3,859,323
Federal National Mortgage Association Strip
 0.00
 3/1/2033
 838,924
4,169,724
Federal National Mortgage Association Strip
 0.00
 4/1/2033
 1,025,289
19,692,757
Federal National Mortgage Association Strip
 0.00
 7/1/2033
 5,142,212
13,306,087
Federal National Mortgage Association Strip
 0.00
 9/1/2033
 3,690,323
9,378,054
Federal National Mortgage Association Strip
 0.00
 9/1/2018
 1,574,866
33,054,219
Federal National Mortgage Association Strip
 0.00
 10/1/2033
 6,759,092
48,610,841
Federal National Mortgage Association Strip
 0.00
 12/1/2033
 9,177,727
6,518,714
Federal National Mortgage Association Strip
 0.00
 12/1/2033
 5,444,430
9,186,605
Federal National Mortgage Association Strip
 0.00
 12/1/2033
 2,269,395
119,242,039
Federal National Mortgage Association Strip
 0.00
 12/1/2033
 91,003,378
150,000,000
Federal National Mortgage Association Strip
 0.00
 1/1/2034
 104,720,250
Total Collateral Value

265,580,197


(c) Collateralized by:

Principal Amount ($)

Security

Rate (%)

Maturity Date

Collateral Value ($)


1,180,000
US Treasury Bill
 0.000
 1/1/2004
 1,179,770
2,100,000
US Treasury Bill
 0.000
 1/15/2004
 2,099,160
2,220,000
US Treasury Bill
 0.000
 1/22/2004
 2,218,894
2,000,000
US Treasury Bill
 0.000
 1/29/2004
 1,998,650
2,950,000
US Treasury Bill
 0.000
 2/5/2004
 2,947,546
900,000
US Treasury Bill
 0.000
 2/12/2004
 899,109
7,250,000
US Treasury Bill
 0.000
 3/25/2004
 7,234,935
1,000,000
US Treasury Bill
 0.000
 4/8/2004
 997,528
4,400,000
US Treasury Bill
 0.000
 5/13/2004
 4,385,150
17,160,000
US Treasury Bill
 0.000
 5/27/2004
 17,096,783
65,100,000
US Treasury Bill
 0.000
 6/10/2004
 64,822,934
2,600,000
US Treasury Bill
 0.000
 6/24/2004
 2,587,601
6,500,000
US Treasury Bond
 13.750
 8/15/2004
 7,010,861
25,896,000
US Treasury Bond
 7.250
 5/15/2016
 32,268,850
1,050,000
US Treasury Bond
 7.500
 11/15/2016
 1,335,141
2,150,000
US Treasury Bond
 8.125
 8/15/2019
 2,901,829
7,000,000
US Treasury Bond
 7.250
 8/15/2022
 8,828,750
21,410,000
US Treasury Bond
 6.250
 8/15/2023
 24,387,339
1,300,000
US Treasury Bond
 6.375
 8/15/2027
 1,508,610
19,500,000
US Treasury Bond
 5.500
 8/15/2028
 20,304,375
7,300,000
US Treasury Bond
 6.125
 8/15/2029
 8,269,535
8,600,000
US Treasury Note
 3.625
 3/31/2004
 8,657,783
1,390,000
US Treasury Note
 3.375
 4/30/2004
 1,401,077
6,500,000
US Treasury Note
 2.875
 6/30/2004
 6,559,924
7,000,000
US Treasury Note
 1.625
 1/31/2005
 7,026,250
1,985,000
US Treasury Note
 3.000
 2/15/2008
 1,992,134
1,250,000
US Treasury Note
 2.625
 5/15/2008
 1,229,883
9,800,000
US Treasury Note
 4.250
 8/15/2013
 9,800,000
7,000,000
US Treasury Note
 3.125
 9/15/2008
 6,989,066
Total Collateral Value

258,939,465


(d) Collateralized by:

Principal Amount ($)

Security

Rate (%)

Maturity Date

Collateral Value ($)


25,538,823
Federal Home Loan Mortgage Corp.
 6.50
 11/1/2031
 26,741,957
5,247,778
Federal Home Loan Mortgage Corp.
 7.00
 4/1/2032
 5,603,525
13,350,234
Federal Home Loan Mortgage Corp.
 7.00
 7/1/2032
 14,121,744
1,090,966
Federal Home Loan Mortgage Corp.
 4.00
 9/1/2018
 1,065,536
8,805,191
Federal Home Loan Mortgage Corp.
 4.50
 11/1/2018
 8,804,662
5,345,258
Federal Home Loan Mortgage Corp.
 6.50
 11/1/2033
 5,598,035
Total Collateral Value

61,935,459


144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

The accompanying notes are an integral part of the financial statements.


Investment Portfolio as of December 31, 2003


Scudder Treasury Money Portfolio

Principal Amount ($)

Value ($)


US Government Backed 35.2%

US Treasury Bills:
0.91%*, 1/15/2004
35,000,000
 34,988,435
0.99%*, 3/11/2004
40,000,000
 39,922,611
0.99%*, 3/18/2004
25,000,000
 24,947,063
1.01%*, 2/5/2004
43,000,000
 42,957,567
1.01%*, 4/29/2004
15,000,000
 14,949,673
US Treasury Notes:
2.13%, 8/31/2004
72,500,000
 72,921,173
3.0%, 1/31/2004
75,000,000
 75,121,990
Total US Government Backed (Cost $305,808,512)

305,808,512


Money Market Funds 8.0%

AIM Treasury Portfolio, 0.92%**
35,000,000
 35,000,000
Dreyfus Treasury Cash Management, 0.72%**
35,000,000
 35,000,000
Total Money Market Funds (Cost $70,000,000)

70,000,000


Time Deposits 3.9%

State Street Euro Dollar Time Deposit, 0.89%, 1/2/2004 (Cost $34,303,000)
34,303,000

34,303,000


Repurchase Agreements 52.9%

Credit Suisse First Boston Corp., 0.9%, dated 12/31/2003, to be repurchased at $10,005,000 on 1/2/2004 (b)
100,000,000
 100,000,000
Goldman Sachs & Co., 0.87%, dated 12/31/2003, to be repurchased at $100,004,833 on 1/2/2004 (c)
100,000,000
 100,000,000
Merrill Lynch Government Securities, 1.04%, dated 12/15/2003, to be repurchased at $30,055,467 on 2/17/2004 (d)
30,000,000
 30,000,000
UBS AG, 0.95%, dated 12/31/2003, to be repurchased at $100,005,278 on 1/2/2004 (e)
100,000,000
 100,000,000
UBS AG, 1.04%, dated 12/08/2003, to be repurchased at $30,078,867 on 3/8/2004 (f)
30,000,000
 30,000,000
Westdeutsche Landesbank Girozentrale, 0.93%, dated 12/31/2003, to be repurchased at $100,005,167 on 1/2/2004 (g)
100,000,000
 100,000,000
Total Repurchase Agreements (Cost $460,000,000)

460,000,000

Total Investment Portfolio - 100.0% (Cost $870,111,512) (a)

870,111,512


* Annualized yield at the time of purchase; not a coupon rate.
** Rate shown is the annualized seven-day yield at period end.
(a) The cost for federal income tax purposes was $870,111,512.
(b) Collateralized by $198,020,000 of US Treasury STRIPS, maturing on 2/15/2017, with a value of $102,000,102.
(c) Collateralized by $184,127,933 of GNMA securities, 6.0%, maturing on various dates from 7/15/2029 until 12/20/2033, with a value of $102,000,000.
(d) Collateralized by $146,849,166 of GNMA securities, 5.0%-15.0%, maturing on various dates from 4/15/2004 until 10/15/2033, with a value of $30,604,919.
(e) Collateralized by $177,224,803 of GNMA securities, 4.5%-9.5%, maturing on various dates from 6/15/2020 until 11/15/2033, with a value of $102,003,929.
(f) Collateralized by $43,415,000 of GNMA securities, 4.0%-6.0%, maturing on various dates from 8/20/2032 until 8/15/2033, with a value of $30,604,731.
(g) Collateralized by $501,962,332 of GNMA securities, 4.0%-7.5%, maturing on various dates from 11/20/2023 until 8/20/2032, with a value of $100,000,926 and $1,570,000 of US Treasury Bonds, 7.125%, maturing on 2/15/2023, with a value of $2,000,034.

The accompanying notes are an integral part of the financial statements.


Financial Statements


Statement of Assets and Liabilities as of December 31, 2003

Assets

Scudder Cash Management Portfolio

Scudder Treasury Money Portfolio

Investments:
Investments in securities, at amortized cost
$ 11,968,380,028 $ 410,111,512
Repurchase agreements, at amortized cost
568,871,999 460,000,000
Total investments in securities, at amortized cost
 12,537,252,027 870,111,512
Cash
 - 126
Interest receivable
 14,051,206 1,510,313
Other assets
 986 -
Total assets
 12,551,304,219 871,621,951
Liabilities
Payable for shares of beneficial interest withdrawn
 - 34,988,435
Accrued advisory fee
 1,124,196 65,584
Accrued administrator service fee
 554,422 31,260
Other accrued expenses and payables
 86,754 46,177
Total liabilities
 1,765,372 35,131,456
Net assets, at value

$ 12,549,538,847

$ 836,490,495


The accompanying notes are an integral part of the financial statements.



Statement of Operations for the year ended of December 31, 2003

Investment Income

Scudder Cash Management Portfolio

Scudder Treasury Money Portfolio

Interest
 $ 143,086,697 $ 9,396,400
Dividends
 3,658,834 236,654
Total Income
 146,745,531 9,633,054
Expenses:
Advisory fee
 18,100,274 1,253,192
Administrator service fee
 5,998,410 417,685
Auditing
 39,441 40,722
Legal
14,653 16,725
Trustees' fees and expenses
 333,492 25,996
Other
 369,338 30,199
Total expenses, before expense reductions
 24,855,608 1,784,519
Expense reductions
 (3,255,628) (113,596)
Total expenses, after expense reductions
 21,599,980 1,670,923
Net investment income

125,145,551

7,962,131

Net realized gain (loss) from investment transactions
 393,261 10,790
Net increase (decrease) in net assets resulting from operations

$ 125,538,812

$ 7,972,921


The accompanying notes are an integral part of the financial statements.



Statement of Changes in Net Assets - Scudder Cash Management Portfolio

Increase (Decrease) in Net Assets

Years Ended December 31,

2003

2002

Operations:
Net investment income
$ 125,145,551 $ 182,233,459
Net realized gain (loss) on investment transactions
 393,261 204,166
Net increase (decrease) in net assets resulting from operations
 125,538,812 182,437,625
Capital transaction in shares of beneficial interest:
Proceeds from capital invested
 77,070,191,562 54,331,491,476
Value of capital withdrawn
 (75,882,811,826) (54,140,926,979)
Net increase (decrease) in net assets from capital transactions in shares of beneficial interest
 1,187,379,736 190,564,497
Increase (decrease) in net assets
1,312,918,548 373,002,122
Net assets at beginning of period
 11,236,620,299 10,863,618,177
Net assets at end of period

$ 12,549,538,847

$ 11,236,620,299


Statement of Changes in Net Assets - Scudder Treasury Money Portfolio

Increase (Decrease) in Net Assets

Years Ended December 31,

2003

2002

Operations:
Net investment income
$ 7,962,131 $ 11,973,811
Net realized gain (loss) on investment transactions
 10,790 84,719
Net increase (decrease) in net assets resulting from operations
 7,972,921 12,058,530
Capital transaction in shares of beneficial interest:
Proceeds from capital invested
 4,114,135,295 106,601,261
Value of capital withdrawn
 (4,080,714,147) (134,822,852)
Net increase (decrease) in net assets from capital transactions in shares of beneficial interest
 33,421,148 (28,221,591)
Increase (decrease) in net assets
41,394,069 (16,163,061)
Net assets at beginning of period
 795,096,426 811,259,487
Net assets at end of period

$ 836,490,495

$ 795,096,426



The accompanying notes are an integral part of the financial statements.


Financial Highlights


Scudder Cash Management Portfolio

Years Ended December 31,

2003

2002

2001

2000

1999

Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)
 12,550 11,237 10,864 8,806 6,101
Ratio of expenses before expense reductions (%)
 .21 .20 .20 .20 .20
Ratio of expenses after expense reductions (%)
 .18 .18 .18 .18 .18
Ratio of net investment income (%)
 1.04 1.71 4.04 6.28 5.04
Total investment return (%)a,b
 1.06 1.72 - - -

Scudder Treasury Money Portfolio

Years Ended December 31,

2003

2002

2001

2000

1999

Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions)
 836 795 811 1,431 2,529
Ratio of expenses before expense reductions (%)
 .21 .21 .21 .21 .20
Ratio of expenses after expense reductions (%)
 .20 .20 .20 .20 .20
Ratio of net investment income (%)
 .95 1.56 3.94 5.95 4.76
Total Investment Return (%)a,c
 .96 1.60 - - -

a Total investment return would have been lower had certain expenses not been reduced.
b Total investment return for the Scudder Cash Management Portfolio was derived from the performance of Cash Reserves Fund Institutional.
c Total investment return for the Scudder Treasury Money Portfolio was derived from the performance of Treasury Money Fund Institutional.

Notes to Financial Statements


Note 1-Organization and Significant Accounting Policies

A. Organization

The Scudder Cash Management Portfolio (formerly Cash Management Portfolio) and the Scudder Treasury Money Portfolio (formerly Treasury Money Portfolio) (each a "Portfolio," and collectively, the "Portfolios") are registered under the Investment Company Act of 1940 (the "1940 Act"), as amended, as diversified, open-end management investment companies organized as New York business trusts.

Each Portfolio's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Portfolios in the preparation of their financial statements.

B. Security Valuation

Each Portfolio's securities are valued utilizing the amortized cost method permitted in accordance with Rule 2a-7 under the 1940 Act and certain conditions therein. Under this method, which does not take into account unrealized capital gains or losses on securities, an instrument is initially valued at its cost and thereafter assumes a constant accretion/amortization to maturity of any discount or premium.

Investments in open-end investment companies are valued at their net asset value each business day.

C. Repurchase Agreements

Each Portfolio may enter into repurchase agreements with certain banks and broker/dealers whereby the Portfolio, through its custodian or sub-custodian bank, receives delivery of the underlying securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the value is equal to at least the principal amount of the repurchase price 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 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 Portfolio has the right to sell the securities and recover any resulting loss from the financial institution. If the financial institution enters into bankruptcy, the Portfolio's claims on the collateral may be subject to legal proceedings.

D. Federal Income Taxes

Each Portfolio is considered a partnership under the Internal Revenue Code. Therefore, no federal income tax provisions are necessary.

E. Other

Investment transactions are accounted for on the trade date. Interest income is recorded on the accrual basis. Distributions of income and capital gains from investment companies are recorded on the ex-dividend date. Realized gains and losses from investment transactions are recorded on an identified cost basis. All discounts and premiums are accreted/amortized for both tax and financial reporting purposes.

Each Portfolio makes a daily allocation of its net investment income and realized gains and losses from securities transactions to its investors in proportion to their investment in the Portfolio.

Note 2-Fees and Transactions with Affiliates

Deutsche Asset Management, Inc., ("DeAM, Inc." or the "Advisor"), an indirect, wholly owned subsidiary of Deutsche Bank AG, is the Advisor for each of the Portfolios. Under the Advisory Agreement, each Portfolio pays the Advisor an annual fee based on its average daily net assets which is calculated daily and paid monthly at the annual rate of 0.15%.

Investment Company Capital Corp. ("ICCC" or the "Administrator"), also an indirect, wholly owned subsidiary of Deutsche Bank AG, is each Portfolio's Administrator. Each Portfolio pays the Administrator an annual fee ("Administrator Service Fee") based on its average daily net assets which is calculated daily and paid monthly at the annual rate of 0.05%.

For the year ended December 31, 2003, the Advisor and Administrator maintained the annualized expenses of the Scudder Cash Management Portfolio and Scudder Treasury Money Portfolio at not more than 0.18% and 0.20%, respectively, of each Portfolio's average daily net assets. The amount of the waiver and whether the Advisor and Administrator waive their fees may vary at any time without notice to the shareholders.

Accordingly, for the year ended December 31, 2003, each Portfolio did not impose a portion of its Advisory fee as follows:


Total Aggregated

Amount
Waived

Effective Rate

Scudder Cash Management Portfolio
 $ 18,100,274 $ 3,255,628

0.12%

Scudder Treasury Money Portfolio
 $ 1,253,192 $ 113,596

0.14%


Effective April 11, 2003, State Street Bank and Trust Company ("State Street") is each Portfolio's custodian. Prior to April 11, 2003, Deutsche Bank Trust Company Americas, an affiliate of the Advisor and Administrator, served as custodian for each Portfolio.

Trustees' Fees and Expenses. As compensation for his or her services, each Independent Trustee receives an aggregate annual fee, plus a fee for each meeting attended (plus reimbursement for reasonable out-of-pocket expenses incurred in connection with his or her attendance at board and committee meetings) from each Fund in the Fund Complex for which he or she serves. In addition, the Chairman of the Fund Complex's Audit Committee receives an annual fee for his services. Payment of such fees and expenses is allocated among all such Funds described above in direct proportion to their relative net assets.

Note 3-Line of Credit

Prior to April 11, 2003, each Portfolio and several other affiliated funds (the "Participants") shared in a $200 million revolving credit facility with a syndicate of banks for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants were charged an annual commitment fee which was allocated, pro rata based upon net assets, among each of the Participants. Interest was calculated at the Federal Funds Rate plus 0.625 percent.

Effective April 11, 2003, each Portfolio entered into a new revolving credit facility administered by J.P. Morgan Chase Bank that provides $1.25 billion of credit coverage. The new revolving credit facility covers the funds and portfolios advised or administered by DeAM, Inc. or its affiliates. Interest is calculated at the Federal Funds Rate plus 0.5 percent. Each Portfolio may borrow up to a maximum of 5 percent of its net assets under the agreement.


Report of Independent Auditors


To the Trustees and Holders of Beneficial Interest of Scudder Cash Management Portfolio (formerly Cash Management Portfolio) and Scudder Treasury Money Portfolio (formerly Treasury Money Portfolio):

In our opinion, the accompanying statements of assets and liabilities, including the investment portfolios, 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 Scudder Cash Management Portfolio and Scudder Treasury Money Portfolio (hereafter referred to as the "Portfolios") at December 31, 2003, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated therein, 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 Portfolios' 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 audits 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 December 31, 2003 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

Boston, Massachusetts
February 27, 2004

PricewaterhouseCoopers LLP



Account Management Resources


Automated Information Lines

Institutional Investor Services (800) 730-1313

Personalized account information, information on other Scudder funds and services via touchtone telephone and the ability to exchange or redeem shares.

For More Information
or To Obtain a Prospectus

(800) 730-1313, option 1

To speak with a fund service representative.

Written Correspondence

Deutsche Asset Management

PO Box 219210
Kansas City, MO
64121-9210

Proxy Voting

A description of the fund's policies and procedures for voting proxies for portfolio securities can be found on our Web site - scudder.com (type "proxy voting" in the search field) - or on the SEC's Web site - www.sec.gov. To obtain a written copy without charge, call us toll free at (800) 621-1048.

Principal Underwriter

If you have questions, comments or complaints, contact:

Scudder Distributors, Inc.

222 South Riverside Plaza
Chicago, IL 60606
(800) 621-1148

Cash Management Fund Investment

Treasury Money Fund Investment

Nasdaq Symbol

BCSXX
 BTTXX

CUSIP Number

81111R 106
 81111R 403

Fund Number

834
 835


Notes



Notes


cmftmf_backcover0 


ITEM 2.         CODE OF ETHICS.

As of the end of the period, December 31, 2003, Scudder Advisor Funds has
adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to
its President and Treasurer and its Chief Financial Officer. A copy of the code
of ethics is filed as an exhibit to this Form N-CSR.

ITEM 3.         AUDIT COMMITTEE FINANCIAL EXPERT.

The Fund's Board of Directors/Trustees has determined that the Fund has at least
one "audit committee financial expert" serving on its audit committee: Mr. S.
Leland Dill. This audit committee member is "independent," meaning that he is
not an "interested person" of the Fund (as that term is defined in Section
2(a)(19) of the Investment Company Act of 1940) and he does not accept any
consulting, advisory, or other compensatory fee from the Fund (except in the
capacity as a Board or committee member).

An "audit committee financial expert" is not an "expert" for any purpose,
including for purposes of Section 11 of the Securities Act of 1933, as a result
of being designated as an "audit committee financial expert." Further, the
designation of a person as an "audit committee financial expert" does not mean
that the person has any greater duties, obligations, or liability than those
imposed on the person without the "audit committee financial expert"
designation. Similarly, the designation of a person as an "audit committee
financial expert" does not affect the duties, obligations, or liability of any
other member of the audit committee or board of directors.

ITEM 4.         PRINCIPAL ACCOUNTANT FEES AND SERVICES.


                         CASH MANAGEMENT FUND INVESTMENT
                      FORM N-CSR DISCLOSURE RE: AUDIT FEES

The following table shows the amount of fees that PricewaterhouseCoopers, LLP
("PWC"), the Fund's auditor, billed to the Fund during the Fund's last two
fiscal years. For engagements with PWC entered into on or after May 6, 2003, the
Audit Committee approved in advance all audit services and non-audit services
that PWC provided to the Fund.

The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).

               Services that the Fund's Auditor Billed to the Fund

--------------------------------------------------------------------------------
Fiscal Year        Audit                                              All Other
   Ended       Fees Billed       Audit-Related          Tax Fees     Fees Billed
December 31        to Fund      Fees Billed to Fund   Billed toFund    to Fund
--------------------------------------------------------------------------------
2003           $13,300                $1,237             $3,100          $0
--------------------------------------------------------------------------------
2002            $9,000                  $0               $2,900          $0
--------------------------------------------------------------------------------

The above "Tax Fees" were billed for professional services rendered for tax
compliance.

           Services that the Fund's Auditor Billed to the Adviser and
                        Affiliated Fund Service Providers

The following table shows the amount of fees billed by PWC to Deutsche
Investment Management Americas, Inc. ("DeIM" or the "Adviser"), and any entity
controlling, controlled by or under common control with DeIM ("Control
Affiliate") that provides ongoing services to the Fund ("Affiliated Fund Service
Provider"), for engagements directly related to the Fund's operations and
financial reporting, during the Fund's last two fiscal years.


--------------------------------------------------------------------------------
                  Audit-Related          Tax Fees                 All
                  Fees Billed to        Billed to          Other Fees Billed
 Fiscal Year     Adviser and            Adviser and         to Adviser and
   Ended         Affiliated Fund       Affiliated Fund      Affiliated Fund
 December 31     Service Provider      Service Providers    Service Providers
--------------------------------------------------------------------------------
2003              $538,457                 $0                    $0
--------------------------------------------------------------------------------
2002              $399,300               $69,500              $92,400
--------------------------------------------------------------------------------

The "Audit-Related Fees" were billed for services in connection with the
assessment of internal controls, agreed-upon procedures and additional related
procedures.







                               Non-Audit Services

The following table shows the amount of fees that PWC billed during the Fund's
last two fiscal years for non-audit services. For engagements entered into on or
after May 6, 2003, the Audit Committee pre-approved all non-audit services that
PWC provided to the Adviser and any Affiliated Fund Service Provider that
related directly to the Fund's operations and financial reporting. The Audit
Committee requested and received information from PWC about any non-audit
services that PWC rendered during the Fund's last fiscal year to the Adviser and
any Affiliated Fund Service Provider. The Committee considered this information
in evaluating PWC's independence.


--------------------------------------------------------------------------------
                         Total Non-Audit Fees
                        billed to Adviser and
                           Affiliated Fund
                          Service Providers     Total Non-Audit Fees
                Total    (engagements related   billed to Adviser
              Non-Audit    directly to the     and Affiliated Fund
                Fees       operations and       Service Providers
Fiscal Year    Billed     financial reporting     (all other          Total of
   Ended       to Fund      of the Fund)           engagements)        (A), (B)
December 31      (A)            (B)                   (C)               and (C)
--------------------------------------------------------------------------------
2003          $3,100              $0                 $3,967,000     $3,970,100
--------------------------------------------------------------------------------
2002          $2,900           $161,900              $17,092,950    $17,257,750
--------------------------------------------------------------------------------


All other engagement fees were billed for services in connection with risk
management, tax services and process improvement/integration initiatives for
DeIM and other related entities that provide support for the operations of the
fund.



                        SCUDDER CASH MANAGEMENT PORTFOLIO
                      FORM N-CSR DISCLOSURE RE: AUDIT FEES

The following  table shows the amount of fees that  PricewaterhouseCoopers,  LLP
("PWC"),  the Fund's  auditor,  billed to the Fund  during  the Fund's  last two
fiscal years. For engagements with PWC entered into on or after May 6, 2003, the
Audit  Committee  approved in advance all audit services and non-audit  services
that PWC provided to the Fund.

The Audit Committee has delegated certain  pre-approval  responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).

               Services that the Fund's Auditor Billed to the Fund

--------------------------------------------------------------------------------
Fiscal Year     Audit Fees       Audit-Related       Tax Fees       All Other
   Ended          Billed         Fees Billed         Billed        Fees Billed
December 31      to Fund             to Fund         to Fund        to Fund
--------------------------------------------------------------------------------
2003            $36,500           $1,237           $3,700           $0
--------------------------------------------------------------------------------
2002            $20,000             $0             $3,600           $0
--------------------------------------------------------------------------------

The above "Tax Fees" were  billed for  professional  services  rendered  for tax
compliance.

           Services that the Fund's Auditor Billed to the Adviser and
                        Affiliated Fund Service Providers

The  following  table  shows  the  amount  of  fees  billed  by PWC to  Deutsche
Investment Management Americas,  Inc. ("DeIM" or the "Adviser"),  and any entity
controlling,   controlled  by  or  under  common  control  with  DeIM  ("Control
Affiliate") that provides ongoing services to the Fund ("Affiliated Fund Service
Provider"),  for  engagements  directly  related  to the Fund's  operations  and
financial reporting, during the Fund's last two fiscal years.


--------------------------------------------------------------------------------
                Audit-Related                                      All
                 Fees Billed to       Tax Fees Billed to     Other Fees Billed
Fiscal Year      Adviser and            Adviser and         to Adviser and
   Ended        Affiliated Fund        Affiliated Fund      Affiliated Fund
December 31    Service Providers      Service Providers    Service Providers
--------------------------------------------------------------------------------
2003                $538,457                 $0                    $0
--------------------------------------------------------------------------------
2002                $399,300               $69,500              $92,400
--------------------------------------------------------------------------------

The  "Audit-Related  Fees"  were  billed for  services  in  connection  with the
assessment of internal controls,  agreed-upon  procedures and additional related
procedures.







                               Non-Audit Services

The  following  table shows the amount of fees that PWC billed during the Fund's
last two fiscal years for non-audit services. For engagements entered into on or
after May 6, 2003, the Audit Committee  pre-approved all non-audit services that
PWC  provided to the Adviser  and any  Affiliated  Fund  Service  Provider  that
related  directly to the Fund's  operations and financial  reporting.  The Audit
Committee  requested  and  received  information  from PWC about  any  non-audit
services that PWC rendered during the Fund's last fiscal year to the Adviser and
any Affiliated Fund Service Provider.  The Committee considered this information
in evaluating PWC's independence.


--------------------------------------------------------------------------------
                         Total Non-Audit Fees
                        billed to Adviser and    Total Non-Audit
                          Affiliated Fund        Fees billed
                         Service Providers       to Adviser
               Total     (engagements related    and Affiliated
              Non-Audit    directly to the       Fund Service
               Fees        operations and        Providers
               Billed     financial reporting    (all other        Total of
Fiscal Year   to Fund        of the Fund)        engagements)      (A), (B)
    Ended
 December 31     (A)            (B)                (C)               and (C)
--------------------------------------------------------------------------------
2003          $3,700             $0             $3,967,000        $3,970,700
--------------------------------------------------------------------------------
2002          $3,600          $161,900          $17,092,950       $17,258,450
--------------------------------------------------------------------------------


All other  engagement  fees were  billed for  services in  connection  with risk
management,  tax services and process  improvement/integration  initiatives  for
DeIM and other related  entities that provide  support for the operations of the
fund.




                        TREASURY MONEY FUND - INVESTMENT
                      FORM N-CSR DISCLOSURE RE: AUDIT FEES

The following table shows the amount of fees that PricewaterhouseCoopers, LLP
("PWC"), the Fund's auditor, billed to the Fund during the Fund's last two
fiscal years. For engagements with PWC entered into on or after May 6, 2003, the
Audit Committee approved in advance all audit services and non-audit services
that PWC provided to the Fund.

The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).

               Services that the Fund's Auditor Billed to the Fund

--------------------------------------------------------------------------------
Fiscal Year        Audit                                              All Other
   Ended       Fees Billed       Audit-Related          Tax Fees     Fees Billed
December 31        to Fund      Fees Billed to Fund   Billed toFund    to Fund
--------------------------------------------------------------------------------
2003           $13,300                $1,237                $3,100      $0
--------------------------------------------------------------------------------
2002            $9,000                  $0                  $2,900      $0
--------------------------------------------------------------------------------

The above "Tax Fees" were billed for professional services rendered for
compliance.

           Services that the Fund's Auditor Billed to the Adviser and
                        Affiliated Fund Service Providers

The following table shows the amount of fees billed by PWC to Deutsche
Investment Management Americas, Inc. ("DeIM" or the "Adviser"), and any entity
controlling, controlled by or under common control with DeIM ("Control
Affiliate") that provides ongoing services to the Fund ("Affiliated Fund Service
Provider"), for engagements directly related to the Fund's operations and
financial reporting, during the Fund's last two fiscal years.


--------------------------------------------------------------------------------
                  Audit-Related          Tax Fees                 All
                  Fees Billed to        Billed to          Other Fees Billed
 Fiscal Year     Adviser and            Adviser and         to Adviser and
   Ended         Affiliated Fund       Affiliated Fund      Affiliated Fund
 December 31     Service Provider      Service Providers    Service Providers
--------------------------------------------------------------------------------
2003             $538,457                 $0                    $0
--------------------------------------------------------------------------------
2002             $399,300               $69,500              $92,400
--------------------------------------------------------------------------------

The "Audit-Related Fees" were billed for services in connection with the
assessment of internal controls, agreed-upon procedures and additional related
procedures.







                               Non-Audit Services

The following table shows the amount of fees that PWC billed during the Fund's
last two fiscal years for non-audit services. For engagements entered into on or
after May 6, 2003, the Audit Committee pre-approved all non-audit services that
PWC provided to the Adviser and any Affiliated Fund Service Provider that
related directly to the Fund's operations and financial reporting. The Audit
Committee requested and received information from PWC about any non-audit
services that PWC rendered during the Fund's last fiscal year to the Adviser and
any Affiliated Fund Service Provider. The Committee considered this information
in evaluating PWC's independence.


--------------------------------------------------------------------------------
                         Total Non-Audit Fees
                        billed to Adviser and
                           Affiliated Fund
                          Service Providers     Total Non-Audit Fees
                Total    (engagements related   billed to Adviser
              Non-Audit    directly to the     and Affiliated Fund
                Fees       operations and       Service Providers
Fiscal Year    Billed     financial reporting     (all other          Total of
   Ended       to Fund      of the Fund)           engagements)        (A), (B)
December 31      (A)            (B)                   (C)               and (C)
--------------------------------------------------------------------------------
2003           $3,100           $0                 $3,967,000        $3,970,100
--------------------------------------------------------------------------------
2002           $2,900        $161,900              $17,092,950       $17,257,750
--------------------------------------------------------------------------------


All other engagement fees were billed for services in connection with risk
management, tax services and process improvement/integration initiatives for
DeIM and other related entities that provide support for the operations of the
fund.




                            TREASURY MONEY PORTFOLIO
                      FORM N-CSR DISCLOSURE RE: AUDIT FEES

The following table shows the amount of fees that PricewaterhouseCoopers, LLP
("PWC"), the Fund's auditor, billed to the Fund during the Fund's last two
fiscal years. For engagements with PWC entered into on or after May 6, 2003, the
Audit Committee approved in advance all audit services and non-audit services
that PWC provided to the Fund.

The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).

               Services that the Fund's Auditor Billed to the Fund

--------------------------------------------------------------------------------
Fiscal Year        Audit                                              All Other
   Ended       Fees Billed       Audit-Related          Tax Fees     Fees Billed
December 31        to Fund      Fees Billed to Fund   Billed toFund    to Fund
--------------------------------------------------------------------------------
2003           $36,500                $1,237                $3,700     $0
--------------------------------------------------------------------------------
2002           $20,000                  $0                  $3,600     $0
--------------------------------------------------------------------------------

The above "Tax Fees" were billed for professional services rendered for tax
compliance.

           Services that the Fund's Auditor Billed to the Adviser and
                        Affiliated Fund Service Providers

The following table shows the amount of fees billed by PWC to Deutsche
Investment Management Americas, Inc. ("DeIM" or the "Adviser"), and any entity
controlling, controlled by or under common control with DeIM ("Control
Affiliate") that provides ongoing services to the Fund ("Affiliated Fund Service
Provider"), for engagements directly related to the Fund's operations and
financial reporting, during the Fund's last two fiscal years.


--------------------------------------------------------------------------------
                  Audit-Related          Tax Fees                 All
                  Fees Billed to        Billed to          Other Fees Billed
 Fiscal Year     Adviser and            Adviser and         to Adviser and
   Ended         Affiliated Fund       Affiliated Fund      Affiliated Fund
 December 31     Service Provider      Service Providers    Service Providers
--------------------------------------------------------------------------------
2003              $538,457                 $0                    $0
--------------------------------------------------------------------------------
2002              $399,300               $69,500              $92,400
--------------------------------------------------------------------------------

The "Audit-Related Fees" were billed for services in connection with the
assessment of internal controls, agreed-upon procedures and additional related
procedures.







                               Non-Audit Services

The following table shows the amount of fees that PWC billed during the Fund's
last two fiscal years for non-audit services. For engagements entered into on or
after May 6, 2003, the Audit Committee pre-approved all non-audit services that
PWC provided to the Adviser and any Affiliated Fund Service Provider that
related directly to the Fund's operations and financial reporting. The Audit
Committee requested and received information from PWC about any non-audit
services that PWC rendered during the Fund's last fiscal year to the Adviser and
any Affiliated Fund Service Provider. The Committee considered this information
in evaluating PWC's independence.


--------------------------------------------------------------------------------
                         Total Non-Audit Fees
                        billed to Adviser and
                           Affiliated Fund
                          Service Providers     Total Non-Audit Fees
                Total    (engagements related   billed to Adviser
              Non-Audit    directly to the     and Affiliated Fund
                Fees       operations and       Service Providers
Fiscal Year    Billed     financial reporting     (all other          Total of
   Ended       to Fund      of the Fund)           engagements)        (A), (B)
December 31      (A)            (B)                   (C)               and (C)
--------------------------------------------------------------------------------
2003           $3,700           $0                 $3,967,000       $3,970,700
--------------------------------------------------------------------------------
2002           $3,600        $161,900              $17,092,950      $17,258,450
--------------------------------------------------------------------------------


All other engagement fees were billed for services in connection with risk
management, tax services and process improvement/integration initiatives for
DeIM and other related entities that provide support for the operations of the
fund.

ITEM 5.         [RESERVED]

ITEM 6.         [RESERVED]

ITEM 7.         DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
                CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

ITEM 8.         [RESERVED]

ITEM 9.         CONTROLS AND PROCEDURES.

(a) The Chief Executive and Financial Officers concluded that the Registrant's
Disclosure Controls and Procedures are effective based on the evaluation of the
Disclosure Controls and Procedures as of a date within 90 days of the filing
date of this report.

(b) During the filing period of the report, management identified issues
relating to the overall fund expense payment and accrual process. Management
discussed these matters with the Registrant's Audit Committee and auditors,
instituted additional procedures to enhance its internal controls and will
continue to develop additional controls and redesign work flow to strengthen the
overall control environment associated with the processing and recording of fund
expenses.

ITEM 10.        EXHIBITS.

(a)(1)   Code of Ethics  pursuant to Item 2 of Form N-CSR is filed and  attached
         hereto as EX-99.CODE ETH.

(a)(2)   Certification  pursuant to Rule 30a-2(a) under the  Investment  Company
         Act of 1940 (17 CFR  270.30a-2(a))  is filed  and  attached  hereto  as
         Exhibit 99.CERT.

(b)      Certification  pursuant to Rule 30a-2(b) under the  Investment  Company
         Act of 1940 (17 CFR  270.30a-2(b))  is furnished and attached hereto as
         Exhibit 99.906CERT.




Form N-CSR Item F

                                   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.

Registrant:                         Deutsche Cash Management Fund Investment


By:                                 /s/Richard T. Hale
                                    ---------------------------
                                    Richard T. Hale
                                    Chief Executive Officer

Date:                               February 27, 2004
                                    ---------------------------


Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

Registrant:                          Deutsche Cash Management Fund Investment


By:                                 /s/Richard T. Hale
                                    ---------------------------
                                    Richard T. Hale
                                    Chief Executive Officer

Date:                               February 27, 2004
                                    ---------------------------



By:                                 /s/Charles A. Rizzo
                                    ---------------------------
                                    Charles A. Rizzo
                                    Chief Financial Officer

Date:                               February 27, 2004
                                    ---------------------------



Form N-CSR Item F

                                   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.

Registrant:                         Deutsche Treasury Money Fund Investment


By:                                 /s/Richard T. Hale
                                    ---------------------------
                                    Richard T. Hale
                                    Chief Executive Officer

Date:                               February 27, 2004
                                    ---------------------------


Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

Registrant:                          Deutsche Treasury Money Fund Investment

By:                                 /s/Richard T. Hale
                                    ---------------------------
                                    Richard T. Hale
                                    Chief Executive Officer

Date:                               February 27, 2004
                                    ---------------------------



By:                                 /s/Charles A. Rizzo
                                    ---------------------------
                                    Charles A. Rizzo
                                    Chief Financial Officer

Date:                               February 27, 2004
                                    ---------------------------