<PAGE>
| Dresdner RCM
| Global Funds
June 30, 1998 | Semi-Annual Report
-------------------------
[LOGO] Dresdner RCM Global Funds
-------------------------
<PAGE>
August 21, 1998
DEAR SHAREHOLDERS:
Enclosed is the Dresdner RCM Global Funds (the "Funds") Semi-Annual
Shareholder Report for the six months ended June 30, 1998. Inside, you'll find
an overview of the economic and market conditions that influenced stock prices
during that time. Following this overview are reports from managers of the
individual Funds that describe the types of investments that Dresdner RCM Global
Investors LLC ("Dresdner RCM"), the Funds' investment manager, made in this
environment. Included in each report is a summary of Fund performance and a list
of Fund holdings at the end of the reporting period.
In the first half of 1998, U.S. stocks continued to break new highs,
buoyed by strong demand from investors at home and abroad. Stocks in Europe also
advanced, as earnings expectations improved. Stocks in Japan and the emerging
markets moved lower during this time. Although the economies of Asia seemed to
stabilize in the first months of the year, it was soon apparent that the
problems there, which contributed to a recession in Japan, were deeper than
investors first realized. As stocks in Asia's emerging markets responded
negatively to these conditions, investors fled stocks in other emerging markets
as well.
Throughout this time, Dresdner RCM maintained its consistent,
disciplined "bottom-up" investment strategy. This helped identify attractive
values in markets that had become increasingly overpriced--as well as
opportunities in markets with weaker valuations.
In choosing stocks for the individual Funds, we draw on the research of
more than 175 investment professionals, using teams of analysts--many of whom
have had professional industry experience in the sectors they follow. We also
investigate company fundamentals through Grassroots Research, our proprietary
research organization. From a network of more than 37,000 industry contacts in
50 countries, this organization gathers information on local market and industry
conditions. To this research, our staff economists add assessments of regional
and global trends.
We use a host of unique research tools to give each investment idea a
thorough reality check. This process provides portfolio managers with a
continuous flow of industry and company information and helps them compare their
ideas with those of other managers. Through a proprietary popularity measurement
system, we also monitor the opinions of sell-side professionals.
The companies we select have solid potential for sustained earnings
growth--due to unique market niches, proprietary products and services, and
outstanding research and development capabilities. We make sure that the
interests of company managers are aligned with those of their shareholders, and
that the companies demonstrate well-capitalized balance sheets and sound
accounting principles. From the firms that meet these criteria, we choose those
whose stocks have attractive risk-adjusted valuations versus others in their
sector.
We believe this approach has served the Funds well in the first half of
1998. If you have any questions about the material in this report, or want more
information on a specific Fund, please call us at 800-726-7240.
Sincerely,
[SIGNATURE]
DeWitt Bowman
Chairman of the Funds
<PAGE>
Economic and Market Overview
World stock prices advanced further in the first half of 1998. During
this time, strong gains in the United States and Europe far outpaced declines in
Asia and other emerging markets. Prices remained volatile, however, as stock
investors interpreted conflicting signals for economic growth and inflation.
In the U.S., anticipated growth in corporate earnings and positive
economic fundamentals helped stock prices reach new highs. Despite concerns that
economic problems in Asia would trim U.S. exports, stock prices continued to
climb. During the first half of 1998, the Standard & Poor's 500 Index earned a
total return of 17.71% for the six months ended June 30, 1998. Meanwhile,
ongoing price restraints and lower costs for Asian imports helped inflation fall
- -- which kept interest rates and bond yields low. Subsequent to the close of the
second quarter, however, earnings announcements signaled a collapse in growth as
exports to Asia began to decline.
Stocks in Europe advanced on further improvements in earnings
expectations. Most European companies remained insulated from Asia's troubles
due to strong inter-regional trade. Stocks also benefited from a positive
balance of supply and demand, which resulted from a rising tide of corporate
share buyback programs and the spread of stock ownership through private pension
plans and equity mutual funds.
ASIAN ECONOMIC CRISIS DEEPENS
In the fourth quarter of 1997, the U.S. gross domestic product (GDP) --
which measures the production of goods and services -- rose at an annualized
rate of 3.0%. With continued price restraints and gains in productivity,
inflation had fallen to 1.7%. In the first quarter of 1998, with lower import
prices and a flood of cash from overseas, GDP growth improved to 5.4%. Despite
upward pressure on wages from tight employment, inflation fell to 1.4%, its
lowest level since 1986.
After correcting in the first weeks of the year, on concerns that Asia's
economic woes would trim corporate profits, U.S. stock prices moved sharply
higher in February and March. In addition to positive economic fundamentals,
which included the strongest level of consumer confidence in decades, signs that
Asian economies were stabilizing with support from the International Monetary
Fund (IMF) helped increase stock demand. At the same time, corporate
consolidations and stock buyback programs continued to reduce stock supplies.
It soon became clear, however, that Asia's problems were getting worse
and included the onset of a recession in Japan. Meanwhile, the prospect of lower
earnings growth in the U.S., a federal budget surplus that will likely shrink
Treasury bond supplies, and strong demand for Treasuries by foreign investors
caused bond yields to continue to fall. Stock prices corrected briefly, but
managed a modest gain for the second quarter -- helped by positive economic
fundamentals and a benign inflationary backdrop.
The worsening of Asia's problems produced greater distinctions between
the earnings outlooks for U.S. companies that sell to or compete with Asian
firms and companies that import from Asia or have no Asian ties. Companies in
the first group, largely industrial and basic materials firms, saw sharp drops
in earnings expectations. Companies in the second group, typically service and
consumer firms, saw little impact on earnings or are benefiting from reduced
import costs.
This "two-tiered" response to Asia's woes further narrowed the universe
of stocks with strong price gains. Over the past six months, the market became
even more focused on stocks with visible earnings streams and strong liquidity.
As in 1997, this sentiment generally favored stocks of larger firms. Strong
demand from foreign investors for familiar names further supported this trend.
Large multinational firms benefited from strong European sales, which offset
weakening Asian demand.
In an environment of strong market liquidity and low inflation, most of
Dresdner RCM Funds remained fully invested. By concentrating on companies with
solid fundamentals and strong potential for earnings growth -- through a
"bottom-up" investment approach -- we helped the Funds make the most of recent
market opportunities. This investment strategy led us to overweight health care,
which benefited from the introduction of new products and strong pricing
flexibility. We also maintained an overweight in the financial sector, which has
benefited from low interest rates, as well as technology stocks, which have
advanced on the long-term growth prospects for their sector.
Page 1
<PAGE>
Economic and Market Overview
QUALITY GROWTH STOCKS SHOULD OUTPERFORM
We believe the problems in Asia are likely to worsen further before they
improve, as analysts are still trimming their economic and earnings forecasts.
For this reason, we expect to remain underweighted in Japan and the emerging
markets of Asia. Our Japanese position is focused on companies that benefit from
weakening Yen export-related growth.
We currently expect to remain overweighted in Europe, because of
companies' improving earnings through restructuring and domestic growth. Given
our continued concern over Asia, we remain underweighted in the cyclicals and
commodities sectors.
On a global basis, our position in U.S. cyclical companies should also
remain underweighted. We believe U.S. GDP growth will slow in the second half of
1998 to a rate of 2.0% to 2.5%. Although a tight labor market may keep pressure
on wages, the inability of most companies to raise prices, combined with slower
growth, should help keep inflation low. This should prevent the Federal Reserve
from raising interest rates, but corporate profit margins may continue to
shrink.
The market should continue to reward companies that deliver solid
earnings growth given the scarcity of such companies. With emphasis on quality
companies with strong earnings potential, the Dresdner RCM Funds should perform
well in this climate.
Page 2
<PAGE>
Dresdner RCM Global Technology Fund
Management's Performance Review
Technology stocks remained volatile in the first six months of 1998.
Continuing a sharp correction that began in October 1997, the sector hit bottom
in January of 1998 -- on concerns about the developing economic crisis in Asia.
Then, as intervention by the International Monetary Fund helped Asian currencies
stabilize, technology stocks rebounded strongly. Although the group lost some of
the ground it gained at the end of the reporting period, technology stocks
enjoyed strong returns that outpaced other equity sectors for the period as a
whole.
Good stock selection helped the Dresdner RCM Global Technology Fund (the
"Fund") outperform other funds with similar investment objectives. For the six
months ended June 30, 1998, the Fund earned a total return of 30.61%. That
compares to an average return of 17.46% for science and technology stock funds
tracked by Lipper Analytical Services.
CYCLICAL SHARES LEAD THE WAY
Within the technology sector, "cyclical" issues with strong ties to the
economy were most vulnerable to the problems in Asia. When technology stocks
faltered in the fall of 1997, we quickly trimmed cyclical shares in the
portfolio and increased our emphasis on software companies with strong growth
potential. Although this diminished Fund performance somewhat as cyclical
technology stocks rebounded early in 1998, we benefited from good performances
by high-growth stocks such as Citrix Systems, Uniphase, CBT Group, Network
Associates, Peerless Systems, and Visio Corp. As it became clear that a rebound
was underway, we restored the Fund's cyclical exposure. This allowed us to
maximize returns as the rally continued into May.
Fund returns also benefited from strong performances by Internet stocks
and from a 14% position in the technology stocks of Europe. Even though European
tech stocks are generally more expensive than those in the U.S., they have
outperformed dramatically. This is partly because there are fewer names for the
market to buy and partly because the technology stocks of Europe have fewer ties
with Asia. In addition, Europe is working aggressively to resolve potential year
2000 computer and monetary union problems -- which has meant strong earnings for
computer-service companies. Meanwhile, computer-service outsourcing is still
developing. During the period, the Fund enjoyed strong returns from
Merkantildata, a computer-service firm in Norway; SEMA, information-services
firm in Great Britain; and Nokia Corp., a telecommunications firm in Finland.
KEEPING AN EYE ON ASIA
The fortunes of technology stocks will likely remain tied to those of
Asia. This is particularly true of technology stocks in more cyclical
businesses. Given the uncertainty about the depth of Asia's problems, we may
wait to invest more heavily in cyclical issues. Eventually, however, investors
should be drawn to the more reasonable prices that cyclical shares offer. We
will thus continue to monitor development in this sector closely, so that we
might make the most of a further rebound there.
Page 3
<PAGE>
Dresdner RCM Global Technology Fund
Performance Summary
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FUND LIPPER SCIENCE & TECHNOLOGY FUND INDEX S&P 500 STOCK INDEX
<S> <C> <C> <C>
12/27/95 $10,000 $10,000 $10,000
12/31/95 $10,040 $9,952 $10,023
1/31/96 $10,370 $9,897 $10,364
2/29/96 $10,660 $10,314 $10,460
3/31/96 $10,620 $9,857 $10,561
4/30/96 $11,580 $10,840 $10,717
5/31/96 $11,930 $11,098 $10,993
6/30/96 $11,380 $10,332 $11,035
7/31/96 $10,270 $9,565 $10,547
8/31/96 $10,770 $10,055 $10,770
9/30/96 $11,870 $10,987 $11,376
10/31/96 $11,700 $10,822 $11,690
11/30/96 $12,770 $11,837 $12,573
12/31/96 $12,692 $11,626 $12,324
1/31/97 $13,689 $12,542 $13,095
2/28/97 $12,359 $11,408 $13,197
3/31/97 $11,564 $10,549 $12,654
4/30/97 $11,715 $11,007 $13,410
5/31/97 $13,447 $12,317 $14,226
6/30/97 $13,860 $12,432 $14,864
7/31/97 $15,694 $14,157 $16,047
8/31/97 $15,764 $14,245 $15,148
9/30/97 $17,094 $14,849 $15,978
10/31/97 $15,986 $13,279 $15,445
11/30/97 $15,754 $13,166 $16,160
12/31/97 $16,129 $12,537 $16,438
1/31/98 $15,976 $12,759 $16,620
2/28/98 $17,837 $14,277 $17,819
3/31/98 $18,838 $14,394 $18,731
4/30/98 $20,452 $15,012 $18,920
5/31/98 $19,227 $13,911 $18,595
6/30/98 $21,065 $14,727 $19,350
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
The chart above shows the performance of the Dresdner RCM Global
Technology Fund since the Fund's inception versus the Standard & Poor's 500
Stock Index(a) and the Lipper Science & Technology Fund Index.(b) The chart
represents a cumulative return of 110.65%(c)(d) for the Fund. The average annual
return from the Fund's inception was 34.55%.(c)(d) The chart assumes a
hypothetical $10,000 initial investment in the Fund and reflects all Fund
expenses.
AVERAGE ANNUAL TOTAL RETURNS(C)
JUNE 30, 1998
<TABLE>
<CAPTION>
LIFE OF
1 YEAR FUND(D)
<S> <C>
51.98% 34.55%
</TABLE>
The data above represents past performance of the Fund and may not be
indicative of future performance. The investment return and principal value of
an investment in the Fund will fluctuate, so that shares, when redeemed, may be
worth more or less than their original cost.
- --------------------------------
(a) The Standard & Poor's 500 Stock Index is a capitalization-weighted index
of 500 stocks that attempts to measure performance of the broad domestic
economy through changes in the aggregate market value of 500 stocks
representing major industries.
(b) The Lipper Science & Technology Fund Index is an equally weighted index of
the 10 largest U.S. science and technology mutual funds.
(c) Returns assume reinvestment of all dividends and capital gains
distributions at net asset value.
(d) The Fund commenced operations on December 27, 1995.
Page 4
<PAGE>
Dresdner RCM Global Technology Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS MARKET VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
BUSINESS SERVICES 0.8%
4,700 US Healthcare Recoveries Inc. * $ 92,825
COMMUNICATION SERVICES 1.2%
1,100 US WinStar Communications Inc. * 47,231
1,510 US WorldCom Inc. * 73,141
------------
120,372
------------
COMPUTERS/OFFICE EQUIPMENT 6.5%
2,000 US Dell Computer Corp. * 185,625
5,400 US E M C Corp. * 241,988
5,760 US Network Appliance Inc. * 224,280
------------
651,893
------------
DRUGS AND HOSPITAL SUPPLIES 5.3%
1,850 US American Home Products Corp. 95,738
1,300 US Amgen Inc. * 84,988
4,000 US Hyseq Inc. * 43,250
4,590 US SangStat Medical Corp. * 144,011
1,900 US Sofamor/Danek Group Inc. * 164,469
------------
532,456
------------
ELECTRONICS/NEW TECHNOLOGY 19.7%
4,850 US Advanced Fibre Communication * 194,303
500 JP Advantest Corp. 26,876
1,600 FR Alcatel Alsthom Compagnie Generale d'Electricitie
(ADR) 65,100
4,400 US Altera Corp. * 130,075
1,766 US Analog Devices Inc. * 43,377
3,315 US Cisco Systems Inc. * 305,187
1,200 SE Ericsson LM Telephone Co. (ADR) 34,350
4,000 US Fore Systems * 106,000
850 US Intel Corp. 63,006
3,470 US Maxim Integrated Products Inc. * 109,956
2,690 FI Nokia Corp. (ADR A) 195,698
15,000 CA Positron Fiber Systems Corp. Class A * 101,250
7,000 US Power Integrations Inc. * 63,875
3,200 US Texas Instruments Inc. 186,600
5,770 US Uniphase Corp. * 362,248
------------
1,987,901
------------
HEALTH CARE SERVICES 0.5%
1,400 US HBO & Co. 49,350
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 5
<PAGE>
Dresdner RCM Global Technology Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS MARKET VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
TECHNOLOGY SERVICES 52.3%
2,280 US Amazon.com Inc. * $ 227,430
2,560 US America Online Inc. 271,360
800 FR Atos S.A. * 191,861
6,200 US BroadVision Inc. * 148,025
2,550 US Cambridge Technology Partners (Mass.) Inc. * 139,294
2,960 IE CBT Group PLC (ADR) * 158,360
3,000 US Cendant Corp. * 62,625
2,200 US Ceridian Corp. * 129,250
4,255 US Citrix Systems Inc. * 290,936
4,800 US CMG Information Services Inc. * 339,600
2,130 US Computer Associates International Inc. 118,348
7,000 US E*Trade Group Inc. * 160,563
4,900 GB ECsoft Group PLC (ADR) * 158,638
1,470 US Electronics Arts Inc. * 79,380
1,200 US Excite Inc. * 112,200
2,700 US HNC Software Inc. * 110,194
1,360 US I2 Technologies Inc. * 47,770
8,200 US INTERLINQ Software Corp. * 58,425
6,150 US Manugistics Group Inc. * 152,213
20,000 NO Merkantildata ASA 252,816
1,380 US Microsoft Corp. * 149,558
2,900 US National Data Corp. 126,875
4,950 US Network Associates Inc. * 236,980
12,600 US Peerless Systems Corp. * 261,450
5,220 US PeopleSoft Inc. * 245,340
4,000 NO Provida ASA * 76,627
5,600 IE Saville Systems PLC (ADR) * 280,700
1,200 FI TT Tieto OY B 45,603
4,177 US VERITAS Software Co. * 172,823
4,200 US Visio Corp. * 200,550
4,100 US Wind River Systems Inc. * 147,085
800 US Yahoo Inc. * 126,000
------------
5,278,879
------------
TOTAL EQUITY INVESTMENTS (COST $5,636,435) 86.3% 8,713,676
------------
OPTIONS 1.1%
13 US Newbridge Networks Corp. Call
January 2000 strike price $20 107,250
------------
TOTAL OPTIONS (COST $132,390) 1.1% 107,250
------------
TOTAL EQUITY INVESTMENTS AND OPTIONS (COST $5,768,825) 87.4% 8,820,926
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 6
<PAGE>
Dresdner RCM Global Technology Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS MARKET VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
SHORT-TERM INVESTMENTS
COMMERCIAL PAPER 7.9%
400,000 US Ford Motor Credit Co. 5.55% maturing 7/13/98 $ 399,260
400,000 US General Electric Capital Corp. 5.57% maturing 7/6/98 399,691
------------
798,951
------------
MONEY MARKET FUNDS 3.2%
163,785 US SSgA U.S. Government Money Market Fund 163,785
163,784 US SSgA Money Market Fund 163,784
------------
327,569
------------
TOTAL SHORT-TERM INVESTMENTS (COST $1,126,520) 11.1% 1,126,520
------------
TOTAL INVESTMENTS (COST $6,895,345)** 98.5% 9,947,446
OTHER ASSETS LESS LIABILITIES 1.5% 149,055
------------
NET ASSETS 100.0% $ 10,096,501
------------
------------
</TABLE>
- --------------------------------
* Non-income producing security.
The accompanying notes are an integral part of the financial statements.
Page 7
<PAGE>
Dresdner RCM Global Technology Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
Tax Information:
** For Federal income tax purposes, cost is $6,931,944 and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 3,209,756
Unrealized depreciation (194,254)
-------------
Net unrealized
appreciation $ 3,015,502
-------------
-------------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's investments in securities at June 30, 1998, categorized by country:
<TABLE>
<CAPTION>
% OF NET ASSETS
------------------------------------------
COUNTRY SHORT-TERM
COUNTRY CODE EQUITIES AND OTHER TOTAL
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Canada CA 1.0% 1.0%
Finland FI 2.4% 2.4%
France FR 2.5% 1.7% 4.3%
Ireland IE 4.3% 4.3%
Japan JP 0.3% 0.3%
Norway NO 3.3% 3.3%
Sweden SE 0.3% 0.3%
United Kingdom GB 1.6% 1.6%
United States US 71.7% 10.9% 82.5%
--- --- ----------
87.4% 12.6% 100.0%
--- --- ----------
--- --- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 8
<PAGE>
Dresdner RCM Global Small Cap Fund
Management's Performance Review
Many small-cap stocks continued to struggle in the first half of 1998.
As it became clear that Asia's economic problems were more severe than first
thought, and the market became more nervous about earnings, stocks of smaller
firms with short earnings records remained out of favor. Certain individual
issues performed quite well, however, particularly in Europe. By focusing on
well-managed companies, whose share prices were reasonable versus potential
earnings growth, we helped the Dresdner RCM Global Small Cap Fund (the "Fund")
earn exceptional returns for the reporting period that outpaced all other global
small-cap funds tracked by Lipper Analytical Services.
For the six months ended June 30, 1998, the Fund had a total return of
25.79%. That compares to a return of 9.38% for the Salomon Brothers Extended
Market Index and an average return of 10.57% for global small-cap funds tracked
by Lipper.
STOCK SELECTION MADE LARGEST CONTRIBUTION
During the period, we remained committed to choosing stocks based on
company fundamentals. As a result, we significantly underweighted stocks from
Japan and other parts of Asia compared with the weighting of Asia in the Morgan
Stanley World Small Cap Index (the "Index"), a representative index for the
Fund. At the end of June, Asian stocks represented less than 2% of Fund assets,
versus about 18% of stocks in the Index.
About half of the Fund was invested in small-cap stocks from the U.S.,
which account for 42% of the Index. The Fund was also heavily invested in
small-cap stocks from Europe, which performed relatively well during the period.
Within Europe, small-cap stocks from Ireland, Spain, Germany, and Sweden made
especially strong contributions to Fund returns -- far offsetting disappointing
performances by stocks in Canada.
Country selection accounted for only one third of the Fund's
outperformance, however. The remaining two thirds came from a strong selection
of individual issues. Stock selection was particularly helpful in Germany, where
the small-cap stocks are benefiting from development of the Neuermarkt stock
exchange. The Fund also benefited from its selection of business-services and
telecommunications stocks, which enjoyed healthy gains in recent months. Among
the portfolio's best performers were Norway-based Tomra Systems (a global
distributor of vending machines that recycle glass and plastic) and U.S.-based
International Telecom Data Systems (which provides information management and
billing for wireless telecommunications firms).
Trades during the period reduced investments in U.S. stocks from 51% of
the portfolio to 43% and further trimmed stocks in Asia. This let us increase
investments in European stocks from 34% to 49%. We believe that Europe now
offers the favorable climate for small-cap shares that the sector enjoyed in the
U.S. a few years ago. Economic growth in Europe is still accelerating, and
interest rates are coming down, while U.S. growth seems to be peaking and
interest rates there could rise. In addition, year-over-year earnings growth in
Europe is near 15%, versus a U.S. rate of about 5%. Meanwhile, demand for stocks
is growing sharply in Europe -- boosted by nascent share buyback programs, and
the spread of equity mutual funds and privately funded pension plans. Europe's
unification should help to sustain these trends.
CONTINUED FOCUS ON EUROPE, U.S.
We expect to maintain a bias toward Europe and the U.S. in months to
come. As always, we will continue to look for strong, competitive companies with
quality management -- whose stock prices are attractive versus those of
competitors in other parts of the world.
Page 9
<PAGE>
Dresdner RCM Global Small Cap Fund
Performance Summary
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FUND SALOMON EMI
<S> <C> <C>
12/31/96 $10,000 $10,000
1/31/97 $10,290 $10,021
2/28/97 $10,010 $10,005
3/31/97 $9,410 $9,665
4/30/97 $9,320 $9,620
5/31/97 $10,730 $10,370
6/30/97 $11,750 $10,689
7/31/97 $12,280 $10,978
8/31/97 $12,320 $10,846
9/30/97 $13,260 $11,313
10/31/97 $12,440 $10,838
11/30/97 $12,410 $10,645
12/31/97 $12,548 $10,647
1/31/98 $12,446 $10,711
2/28/98 $13,827 $11,501
3/31/98 $15,071 $11,980
4/30/98 $15,705 $12,039
5/31/98 $15,388 $11,799
6/30/98 $15,784 $11,645
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
The chart above shows the performance of the Dresdner RCM Global Small
Cap Fund since the Fund's inception versus the Salomon EMI's Index.(a) The chart
represents a cumulative return of 57.84%(b)(c) for the Fund. The average annual
total return from the Fund's inception was 35.57%.(b)(c) The chart assumes a
hypothetical $10,000 initial investment in the Fund and reflects all Fund
expenses.
AVERAGE ANNUAL TOTAL RETURNS(B)
JUNE 30, 1998
<TABLE>
<CAPTION>
1 YEAR LIFE OF FUND(C)
<S> <C>
34.33% 35.57%
</TABLE>
The data above represents past performance of the Fund and may not be
indicative of future performance. The investment return and principal value of
an investment in the Fund will fluctuate, so that shares, when redeemed, may be
worth more or less than their original cost.
- --------------------------------
(a) The Salomon Brothers Extended Market Index ("EMI") is a component of the
Salomon Brothers Broad Market Index ("BMI") which includes listed shares of
5,409 companies with a total available market capitalization of at least the
local equivalent of US$100 million on the last business day of May each
year. The BMI consists of two components: the Primary Market Index ("PMI")
is the large capitalization stock component and the EMI is the small
capitalization stock component. The PMI universe is defined as those stocks
falling within the top 80% of the cumulative available capital level in each
country. The EMI includes the bottom 20% of the cumulative available capital
level in each country.
(b) Returns assume reinvestment of all dividends and capital gains
distributions at net asset value.
(c) The Fund commenced operations on December 31, 1996.
Page 10
<PAGE>
Dresdner RCM Global Small Cap Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
CONSUMER DURABLES SECTOR 3.1%
AUTOMOTIVE RELATED 1.5%
11,000 IT Manuli Rubber Industries $ 59,408
700 US Tower Automotive Inc. * 30,013
-----------
89,421
-----------
OTHER CONSUMER DURABLES 1.6%
3,000 GB Hozelock Group PLC 16,268
1,600 NL Koninklijke Ahold N.V. 52,226
1,800 US Sonic Automatic Inc. * 29,588
-----------
98,082
-----------
CONSUMER NON-DURABLES SECTOR 27.8%
BEVERAGE AND TOBACCO 4.5%
2,900 ES Baron de Ley S.A. * 96,420
2,375 FI Hartwall Oy ABP 76,187
18,000 GB Vaux Group PLC 95,054
-----------
267,661
-----------
FOOD AND FOOD PROCESSING 0.9%
40 JP Hokuto Corp. 1,124
3,500 US Omega Protein Corp. * 53,813
-----------
54,937
-----------
GENERAL RETAIL 7.9%
2,100 ES Adolfo Dominguez S.A. * 71,331
1,800 US CSK Auto Corp. * 45,450
3,000 US French Fragrances Inc. * 46,875
33 DE Hugo Boss AG 69,472
2,000 US Regis Corp. 59,125
400 CH Selecta Group - Registered Shares 85,442
4,400 IS Tefron Ltd. * 96,800
-----------
474,495
-----------
HOUSEHOLD/RELATED NON-DURABLES 3.9%
7,000 US Carson Inc. * 55,125
2,200 US Ocular Sciences Inc. * 71,500
1,200 US Rayovac Corp. * 27,225
2,200 US Scotts Co. * 81,950
-----------
235,800
-----------
LEISURE TIME PRODUCTS/SERVICES 10.6%
3,300 FR Compagnie des Alpes 97,318
6,900 ES Corp Financiera Reunida S.A. * 104,341
2,200 US Dave & Buster's Inc. * 54,725
7,000 IE Jurys Hotel Group PLC 59,565
1,000 FR Leon de Bruxelles S.A. 102,547
1,220 ES Sol Melia S.A. 58,175
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 11
<PAGE>
Dresdner RCM Global Small Cap Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
LEISURE TIME PRODUCTS/SERVICES (CONTINUED)
3,600 ES TelePizza S.A. * $ 38,213
4,000 SE Ticket Travel Group 53,166
5,000 HK Zindart Ltd. (ADR) * 67,813
-----------
635,863
-----------
CYCLICAL/CAPITAL GOODS SECTOR 12.5%
BUILDING AND CONSTRUCTION 5.0%
3,000 US Comfort Systems USA Inc. * 70,125
11,000 MX Consorcio ARA S.A. * 34,949
330 FR Eiffage 28,546
4,900 IE Green Property PLC 35,564
50,000 IT Gruppo Ceramiche Ricchetti 88,605
2,200 US Integrated Electrical Services * 44,275
-----------
302,064
-----------
INDUSTRIAL EQUIPMENT 5.0%
400 DE Aixtron AG 67,146
500 DE Jenoptik AG * 15,512
6,000 SE Munters AB 65,455
600 DE Pfeiffer Vacuum Technology (Special ADR G) * 42,714
2,900 US Sauer Inc. 40,781
2,200 NO Tomra Systems A/S 65,941
-----------
297,549
-----------
RAW/BASIC MATERIALS 0.4%
1,500 US Metals USA Inc. * 25,875
TRANSPORTATION SERVICES 2.1%
700 DE Sixt AG Non-Voting Pfd. * 87,450
3,000 BG Virgin Express Holdings PLC (ADR) * 38,813
-----------
126,263
-----------
ENERGY SECTOR 3.8%
ENERGY 3.8%
7,332 GB British-Borneo Petroleum Syndicate PLC 36,639
1,665 CA Ballard Power Systems Inc. * 54,064
2,000 US Hanover Compressor Co. * 54,125
30,000 NO Ocean Rig ASA * 22,284
3,500 NO Seateam Technology ASA * 62,031
-----------
229,143
-----------
HEALTH CARE SECTOR 5.9%
DRUGS & HOSPITAL SUPPLIES 2.1%
3,400 GB Shire Pharmaceuticals Group PLC (ADR) * 72,675
3,000 FR Transgene S.A. (ADR) * 52,125
-----------
124,800
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 12
<PAGE>
Dresdner RCM Global Small Cap Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
HEALTH CARE SERVICES 3.8%
800 US Curative Health Services Inc. * $ 22,800
1,900 US Horizon Health Corp. * 33,250
1,000 US Kendle International Inc. * 30,250
2,500 US Orthodontic Centers of America Inc. * 52,344
2,500 US ParExel International Corp. * 90,938
-----------
229,582
-----------
INTEREST SENSITIVE SECTOR 5.4%
BANKING 0.9%
1,000 ES Banco Pastor S.A. 56,503
GENERAL FINANCE 4.5%
2,500 US American Capital Strategies Ltd. 57,188
3,000 US Correctional Properties Trust * 60,750
1,800 US First Sierra Financial Inc. * 54,900
1,100 US Sirrom Capital Corp. 28,600
3,500 US UniCapital Corp. * 66,938
-----------
268,376
-----------
TECHNOLOGY SECTOR 17.4%
COMPUTERS AND OFFICE EQUIPMENT 1.0%
3,000 SE Maldata AB Series B 62,069
ELECTRONICS AND NEW TECHNOLOGY 0.2%
600 US SDL Inc. * 14,325
TECHNOLOGY SERVICES 16.2%
1,400 US Aspen Technologies Inc. * 70,700
2,000 US BroadVision Inc. * 47,750
1,400 US Citrix Systems Inc. * 95,725
1,000 US Engineering Animation Inc. * 61,000
1,200 US HNC Software Inc. * 48,975
1,600 US INSpire Insurance Solutions Inc. * 53,200
3,000 US International Telecommunication Systems Inc. * 87,000
315 FR Jet Multimedia 71,065
6,000 NO Merkantildata ASA 75,845
1,600 US Metzler Group Inc. * 58,600
100 US New Era of Networks Inc. * 3,050
1,000 JP Nippon System Development 23,778
4,700 CA Open Text Corp. * 70,500
1,740 IE Saville Systems PLC (ADR) * 87,218
1,050 US VERITAS Software Co. * 43,444
1,300 US Visio Corp. * 62,075
200 US Whittman-Hart Inc. * 9,675
-----------
969,600
-----------
TELEMEDIA/SERVICES SECTOR 19.8%
BUSINESS SERVICES 13.4%
340 FR Altran Technologies S.A. 77,211
1,200 US American Disposal Services Inc. * 56,250
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 13
<PAGE>
Dresdner RCM Global Small Cap Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
BUSINESS SERVICES (CONTINUED)
800 US Caribiner International Inc. * $ 14,000
6,000 GB Delphi Group PLC 59,565
900 DE DIS Deutscher Industrie Service AG 74,791
1,800 US Eastern Environmental Services Inc. * 61,200
2,000 US F. Y. I. Inc. * 57,000
2,000 US Healthcare Recoveries Inc. * 39,500
1,200 US Lason Holdings Inc. * 65,400
3,000 US NCO Group Inc. * 66,000
1,000 US Romac International Inc. * 30,375
4,600 GB Select Appointment (Holdings) PLC 65,622
1,800 NL Unique International N.V. 61,055
3,000 US Wilmar Industries Inc. * 76,500
-----------
804,469
-----------
COMMUNICATION SERVICES 6.4%
5,000 GB Freepages Group PLC * 61,250
1,400 US Global TeleSystems Group Inc. * 68,250
280 DE MobilCom AG 68,251
2,850 IS NICE Systems Ltd. (ADR) * 106,874
1,800 US Snyder Communications Inc. * 79,200
-----------
383,825
-----------
TOTAL EQUITY INVESTMENTS (COST $4,868,598) 96.0% 5,750,702
-----------
SHORT-TERM INVESTMENTS
MONEY MARKET FUNDS 5.0%
136,604 US SSgA U.S. Government Money Market Fund 136,604
161,969 US SSgA Money Market Fund 161,969
-----------
TOTAL SHORT-TERM INVESTMENTS (COST $298,573) 5.0% 298,573
-----------
TOTAL INVESTMENTS (COST $5,167,171) ** 101.0% 6,049,275
OTHER ASSETS LESS LIABILITIES (1.0%) (57,722)
-----------
NET ASSETS 100.0% $ 5,991,553
-----------
-----------
</TABLE>
- --------------------------------
* Non-income producing security.
Tax Information:
** For Federal income tax purposes, cost is $5,167,964 and unrealized
appreciation (depreciation) of equity securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 1,114,106
Unrealized depreciation (232,795)
-------------
Net unrealized
appreciation $ 881,311
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 14
<PAGE>
Dresdner RCM Global Small Cap Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
The Fund's investments in securities at June 30,1998, categorized by country:
<TABLE>
<CAPTION>
% OF NET ASSETS
--------------------------------------------
COUNTRY SHORT-TERM
COUNTRY CODE EQUITIES AND OTHER TOTAL
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Belgium BG 0.6% 0.6%
Canada CA 2.1% 2.1%
Finland FI 1.3% 1.3%
France FR 7.2% 7.2%
Germany DE 7.1% 7.1%
Hong Kong HK 1.1% 1.1%
Ireland IE 3.0% 3.0%
Israel IS 3.4% 3.4%
Italy IT 2.5% 2.5%
Japan JP 0.4% 0.4%
Mexico MX 0.6% 0.6%
Netherlands NL 1.9% 1.9%
Norway NO 3.8% 0.5% 4.3%
Spain ES 7.1% 7.1%
Sweden SE 3.0% 3.0%
Switzerland CH 1.4% 1.4%
United Kingdom GB 6.8% 6.8%
United States US 42.7% 3.5% 46.2%
--- -- ----------
Total 96.0% 4.0% 100.0%
--- -- ----------
--- -- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 15
<PAGE>
Dresdner RCM Global Health Care Fund
Management's Performance Review
With strong returns from stocks of drug and medical-device firms, the
health care sector outperformed stocks as a whole in the first half of 1998. The
technology these firms employ has advanced at a rapid rate, which should
continue for some time. Meanwhile, drug and medical-device companies are better
able to raise prices than are firms in other industries.
The Dresdner RCM Global Health Care Fund (the "Fund") enjoyed strong
performances from its investments in these groups, which helped deliver a
six-month return that was quite strong by historical market norms. However,
because the Fund was somewhat overweighted in health care service and
biotechnology companies, which underperformed for the reporting period, the Fund
lagged its market benchmark.
For the six months ended June 30, 1998, the Fund earned a total return
of 9.96%. That compares to a return of 23.99% for the Russell Midcap Health Care
Index (the "Index"). Over the same time, health care and biotechnology stock
funds tracked by Lipper Analytical Services earned an average return of 9.72%.
INCREASE IN DRUG AND BIOTECH SHARES
Although just 34% of Fund assets were invested in health care service
firms, versus 50% for the Index, we concentrated on hospitals and physician
practice-management firms. These groups were hurt by uncertainty about the
future of government health care reimbursement practices, which are currently
under review. By contrast, the Index is focused on health management
organizations in the service group, which outperformed for the period. Among
individual service group investments that helped Fund performance were drug
distributors, such as Cardinal Health.
Although we believe that biotechnology firms offer strong potential for
growth over time, they performed poorly in the last six months. This may be
partly because few investment analysts are taking the time to understand
industry fundamentals in a climate of economic and earnings uncertainty. As
prices in the sector weakened, we took the opportunity to add to names that we
think are particularly attractive. For the most part, we focused on later-stage
firms that have products ready for sale and prospects for exceptional earnings
growth.
Within the drug sector, the Fund's stock selection contributed
positively to returns. Among the best performers were Alza Corp. and Warner
Lambert. During the period, we increased the Fund's allocation for drug stocks
from 33% of the portfolio to 41% -- focusing on issues that we believe are
undervalued.
A BULLISH OUTLOOK
We remain bullish on health care stocks -- particularly drug shares,
which should continue to benefit from proven earnings growth and a deep pipeline
of new products. We also continue to believe that long-term prospects for
biotechnology stocks are bright, but expect further volatility in the near term.
In the months ahead, we will look for new opportunities in these areas.
Page 16
<PAGE>
Dresdner RCM Global Health Care Fund
Performance Summary
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FUND RUSSELL MIDCAP HEALTH CARE INDEX S&P 500 STOCK INDEX
<S> <C> <C> <C>
12/31/96 $10,000 $10,000 $10,000
1/31/97 $10,700 $10,353 $10,625
2/28/97 $10,650 $10,552 $10,708
3/31/97 $9,910 $9,637 $10,268
4/30/97 $10,050 $9,786 $10,881
5/31/97 $11,140 $10,712 $11,544
6/30/97 $11,660 $11,201 $12,061
7/31/97 $11,990 $11,904 $13,021
8/31/97 $11,790 $11,739 $12,292
9/30/97 $13,110 $12,373 $12,965
10/31/97 $12,910 $11,644 $12,532
11/30/97 $13,110 $11,886 $13,113
12/31/97 $13,000 $11,920 $13,338
1/31/98 $13,189 $11,938 $13,486
2/28/98 $14,060 $13,012 $14,458
3/31/98 $14,584 $13,725 $15,199
4/30/98 $14,897 $14,478 $15,352
5/31/98 $14,261 $14,231 $15,088
6/30/98 $14,295 $14,779 $15,701
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
The chart above shows the performance of the Dresdner RCM Global Health
Care Fund since the Fund's inception versus the Standard & Poor's 500 Stock
Index(a) and the Russell Midcap Health Care Index.(b) The chart represents a
cumulative return of 42.95%(c)(d) for the Fund. The average annual total return
from the Fund's inception was 26.90%.(c)(d) The chart assumes a hypothetical
$10,000 initial investment in the Fund and reflects all Fund expenses.
AVERAGE ANNUAL TOTAL RETURNS(C)
JUNE 30, 1998
<TABLE>
<CAPTION>
LIFE OF
1 YEAR FUND(D)
<S> <C>
22.59% 26.90%
</TABLE>
The data above represents past performance of the Fund and may not be
indicative of future performance. The investment return and principal value of
an investment in the Fund will fluctuate, so that shares, when redeemed, may be
worth more or less than their original cost.
- --------------------------------
(a) The Standard & Poor's 500 Stock Index is a capitalization-weighted index
of 500 stocks that attempts to measure performance of the broad domestic
economy through changes in the aggregate market value of 500 stocks
representing major industries.
(b) The Russell Midcap Health Care Index is composed of all medium and
medium/small health care companies in the Russell 1000 Index. The Russell
1000 Index measures the performance of the 1,000 largest companies in the
Russell 3000 Index, which represents approximately 90% of the total market
capitalization of the Russell 3000 Index.
(c) Returns assume reinvestment of all dividends and capital gains
distributions at net asset value.
(d) The Fund commenced operations on December 31, 1996.
Page 17
<PAGE>
Dresdner RCM Global Health Care Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
DRUGS AND HOSPITAL SERVICES 70.5%
2,200 US Algos Pharmaceutical Corp. * $ 59,400
6,200 US Alza Corp. * 268,150
6,000 US American Home Products Corp. 310,500
4,000 US Amgen Inc. * 261,500
3,500 US Anesta Corp. * 50,531
1,900 US Arrow International Inc. 52,131
2,200 US Bausch & Lomb Inc. 110,275
1,800 US Boston Scientific Corp. * 128,925
1,200 US Bristol Myers Squibb Co. 137,925
13,300 US CIMA Labs Inc. * 44,472
2,500 US Coulter Pharmaceuticals Inc. * 75,938
4,300 US DePuy Inc. 121,475
900 IR Elan PLC (ADR) * 57,881
2,300 US Eli Lilly & Co. 151,944
9,300 US Gensia Sicor Inc. * 37,200
1,700 GB Glaxo Wellcome PLC (ADR) 101,681
2,000 US Inhale Therapeutic Systems * 49,500
2,200 US Johnson & Johnson 162,250
3,200 US Monsanto Co. 178,800
14,700 US NaPro BioTherapeutics Inc. * 18,375
2,200 US Novoste Corp. * 48,538
6,020 FI Orion Yhtyma OY Series B 185,434
2,000 US Penederm Inc. * 40,000
1,700 US Perclose Inc. * 48,025
2,900 US SangStat Medical Corp. * 90,988
1,400 US Sepracor Inc. * 58,100
2,500 GB Shire Pharmaceuticals Group PLC (ADR) * 53,438
2,000 GB Smithkline Beecham PLC (ADR) 121,000
2,600 US Sofamor/Danek Group Inc. * 225,063
1,400 US Triangle Pharmaceuticals Inc. * 20,825
3,000 US Warner Lambert Co. 208,125
3,750 GB Zeneca Group PLC (ADR) 164,531
-----------
3,642,920
-----------
HEALTH CARE SERVICES 27.3%
6,000 US American Dental Partners * 84,000
2,000 US AmeriSource Health Corp. * 131,375
2,575 US Bergen Brunswig Corp. 119,416
8,000 US Centennial HealthCare Corp. * 145,000
1,800 US Columbia / HCA Healthcare Corp. 52,425
3,000 US Concentra Managed Care Inc. * 78,000
1,800 US Curative Health Services Inc. * 51,300
5,600 US Health Care & Retirement Corp. * 220,850
2,500 US ParExel International Corp. * 90,938
3,500 US PhyCor Inc. * 57,969
3,200 US Professional Detailing Inc. * 79,600
7,100 US Promedco Management Co. * 72,775
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 18
<PAGE>
Dresdner RCM Global Health Care Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
HEALTH CARE SERVICES (CONTINUED)
2,200 US Rural/Metro Corp. * $ 28,600
5,000 US Tenet Healthcare Corp. * 156,250
700 US Universal Health Services Inc. Class B * 40,863
-----------
1,409,361
-----------
ELECTRONICS/NEW TECHNOLOGY 1.2%
1,000 US Perkin Elmer Corp. 62,185
-----------
TOTAL EQUITY INVESTMENTS (COST $4,666,149) 99.0% 5,114,466
-----------
SHORT-TERM INVESTMENTS
MONEY MARKET FUNDS 1.0%
25,972 US SSgA Money Market Fund 25,972
25,988 US SSgA U.S. Government Money Market Fund 25,988
-----------
TOTAL SHORT-TERM INVESTMENTS (COST $51,960) 1.0% 51,960
-----------
TOTAL INVESTMENTS (COST $4,718,109) ** 100.0% 5,166,426
OTHER ASSETS LESS LIABILITIES 0.0% 793
-----------
NET ASSETS 100.0% $ 5,167,219
-----------
-----------
</TABLE>
- --------------------------------
* Non-income producing security.
Tax Information:
** For Federal income tax purposes, cost is $4,735,883 and unrealized
appreciation (depreciation) of equity securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 738,512
Unrealized depreciation (307,969)
-------------
Net unrealized
appreciation $ 430,543
-------------
-------------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's investments in securities at June 30, 1998, categorized by country:
<TABLE>
<CAPTION>
% OF NET ASSETS
------------------------------------------
COUNTRY SHORT-TERM AND
COUNTRY CODE EQUITIES OTHER TOTAL
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Finland FI 3.6% 3.6%
Ireland IR 1.1% 1.1%
United Kingdom GB 8.5% 8.5%
United States US 85.8% 1.0% 86.8%
--- -- ----------
Total 99.0% 1.0% 100.0%
--- -- ----------
--- -- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 19
<PAGE>
Dresdner RCM Large Cap Growth Fund
Management's Performance Review
Large-cap stocks continued to outperform small and mid-cap stocks in
recent months. As further deterioration in Asian economies caused foreign equity
investors to seek refuge in U.S. markets, those investors favored large
companies with familiar names, good liquidity, and reliable earnings growth.
Within the large-cap sector, companies with few or no Asian exposure tended to
outperform -- along with companies enjoying lower costs for imports from Asia.
By emphasizing stocks of drug companies and technology firms with these
characteristics, we helped the Dresdner RCM Large Cap Growth Fund (the "Fund")
earn exceptional returns and outperform its benchmark.
For the six months ended June 30, 1998, the Fund earned a total return
of 22.67%. That compares to a return of 17.71% for the Standard & Poor's 500
Index (the "Index") and an average return of 15.11% for growth funds tracked by
Lipper Analytical Services.
EARNINGS GROWTH REMAINS KEY
Pharmaceutical stocks benefited from the market's preference for
earnings that could expand even if economic growth slows. Technology stocks also
benefited from their long-term earnings potential. At the end of June, drug and
other health care stocks represented about 28% of Fund assets, versus about 13%
of stocks in the Index. Technology stocks accounted for about 21% of the Fund's
portfolio, versus 15% of the Index.
The Fund further benefited from an underweighting in basic materials
stocks, which were hurt by ties with Asia and by the prospect of slower U.S.
growth, as well as from an underweighting in energy stocks, which were hurt by
falling oil prices. At the end of the period, the Fund had a 1% weighting in
energy, versus 7% for the Index, and a 0% weighting in cyclicals and basic
materials, versus 5% for the Index.
Stock selection also made strong positive contributions to Fund returns.
When the Asian crisis first surfaced in 1997, prices fell sharply for technology
stocks as a whole. Realizing that some technology companies would either be
unaffected or actually benefit from the crisis, we made substantial purchases of
those shares. The prices for many of these stocks rebounded strongly in the
first half of 1998 -- adding significantly to Fund returns.
The Fund enjoyed strong returns from America Online, WorldCom, Cisco
Systems, and especially from Dell Computer, whose price doubled during the first
half. Other stocks making positive contributions included Pfizer, Nokia Corp.,
and Tyco International. Returns from these shares far outweighed disappointing
performances from stocks such as Eli Lilly and Host Marriott.
During the period, we also added to positions in retail stocks such as
Nordstrom, which have benefited from strong consumer spending, lower import
costs, and a focus on domestic sales. Within this sector, we emphasized stocks
such as Home Depot, Lowes, and Dayton Hudson that could benefit as low interest
rates spurred home sales and improvements.
TWO-TIERED MARKET SHOULD CONTINUE
We believe large-cap shares could again perform well in coming months as
money continues to flow into U.S. stocks from abroad and domestic retirement
plans. Even though large-cap stocks remain very expensive versus shares of
smaller firms, the market is likely to continue paying premium prices for good
liquidity, familiar names, and strong earnings streams.
Page 20
<PAGE>
Dresdner RCM Large Cap Growth Fund
Performance Summary
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FUND S&P 500 STOCK INDEX
<S> <C> <C>
12/31/96 $10,000 $10,000
1/31/97 $10,640 $10,625
2/28/97 $10,570 $10,708
3/31/97 $9,920 $10,268
4/30/97 $10,490 $10,881
5/31/97 $11,300 $11,544
6/30/97 $11,880 $12,061
7/31/97 $13,020 $13,021
8/31/97 $12,210 $12,292
9/30/97 $13,230 $12,965
10/31/97 $12,930 $12,532
11/30/97 $13,140 $13,113
12/31/97 $13,199 $13,338
1/31/98 $13,599 $13,486
2/28/98 $14,647 $14,458
3/31/98 $15,337 $15,199
4/30/98 $15,737 $15,352
5/31/98 $15,263 $15,088
6/30/98 $16,190 $15,701
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
The chart above shows the performance of the Dresdner RCM Large Cap
Growth Fund since the Fund's inception versus the Standard & Poor's 500
Index.(a) The chart represents a cumulative return of 61.90%(b)(c) for the Fund.
The average annual total return from the Fund's inception was 37.88%.(b)(c) The
chart assumes a hypothetical $10,000 initial investment in the Fund and reflects
all Fund expenses.
AVERAGE ANNUAL TOTAL RETURNS(B)
JUNE 30, 1998
<TABLE>
<CAPTION>
LIFE OF
1 YEAR FUND(C)
<S> <C>
36.28% 37.88%
</TABLE>
The data above represents past performance of the Fund and may not be
indicative of future performance. The investment return and principal value of
an investment in the Fund will fluctuate, so that shares, when redeemed, may be
worth more or less than their original cost.
- --------------------------------
(a) The Standard & Poor's 500 Stock Index is a capitalization-weighted index
of 500 stocks that attempts to measure performance of the broad domestic
economy through changes in the aggregate market value of 500 stocks
representing major industries.
(b) Returns assume reinvestment of all dividends and capital gains
distributions at net asset value.
(c) The Fund commenced operations on December 31, 1996.
Page 21
<PAGE>
Dresdner RCM Large Cap Growth Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
CONSUMER NON-DURABLES SECTOR 19.0%
BEVERAGE AND TOBACCO 5.8%
1,600 US Coca Cola Co. $ 136,800
2,300 US Coca Cola Enterprises Inc. 90,275
2,200 US Pepsico Inc. 90,612
1,000 US Philip Morris Co. Inc. 39,375
-----------
357,062
-----------
GENERAL RETAIL 4.8%
900 US Dayton Hudson Corp. 43,650
800 US Home Depot Inc. 66,450
900 US Liz Claiborne Inc. 47,025
1,000 US Lowe's Companies Inc. 40,562
1,000 US Nordstrom Inc. 38,625
2,000 US Office Depot Inc. * 63,125
-----------
299,437
-----------
HOUSEHOLD/RELATED NON-DURABLES 5.8%
1,200 US Colgate Palmolive Co. 105,600
2,000 US Gillette Co. 113,375
1,200 US Procter & Gamble Co. 109,275
600 US Revlon Inc. Class A * 30,825
-----------
359,075
-----------
LEISURE TIME PRODUCT/SERVICES 2.6%
5,300 US Host Marriott Corp. 94,406
1,000 US McDonalds Corp. 69,000
-----------
163,406
-----------
CAPITAL GOODS SECTOR 6.7%
ELECTRICAL EQUIPMENT 2.6%
1,800 US General Electric Co. 163,800
INDUSTRIAL EQUIPMENT 4.1%
4,000 US Tyco International Ltd. 252,000
ENERGY SECTOR 1.1%
ENERGY 1.1%
700 US Burlington Resources Inc. 30,144
500 US Camco International Inc. 38,938
-----------
69,082
-----------
HEALTH CARE SECTOR 28.5%
DRUGS & HOSPITAL SERVICES 25.4%
1,600 US Alza Corp. 69,200
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 22
<PAGE>
Dresdner RCM Large Cap Growth Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
DRUGS & HOSPITAL SERVICES (CONTINUED)
2,200 US Amgen Inc. * $ 143,825
600 US Bausch & Lomb Inc. 30,075
500 US Boston Scientific Corp. 35,813
800 US Centocor Inc. 29,000
3,500 US Eli Lilly & Co. 231,219
900 US Johnson & Johnson 66,375
1,500 US Medtronic Inc. 95,625
2,100 US Monsanto Co. 117,338
2,800 US Pfizer Inc. 304,325
1,400 US SangStat Medical Corp. 43,925
1,100 GB Smithkline Beecham PLC (ADR) 66,550
900 US Sofamor/Danek Group Inc. * 77,906
3,300 US Warner Lambert Co. 228,937
700 GB Zeneca Group PLC (ADR) 30,713
-----------
1,570,826
-----------
HEALTH CARE SERVICES 3.1%
600 US Bergen Brunswig Corp. 27,825
500 US Cardinal Health Inc. 46,875
2,400 US HBO & Co. 84,600
1,000 US Tenet Healthcare Corp. * 31,250
-----------
190,550
-----------
INTEREST-SENSITIVE SECTOR 12.7%
BANKING 3.2%
1,200 US Bank of New York Inc. 72,825
1,350 US Southtrust Corp. 58,725
1,500 US U.S. Bancorp 64,594
-----------
196,144
-----------
GENERAL FINANCE 7.1%
2,400 US AMRESCO Inc. 69,900
500 US Associates First Capital Corp. Class A 38,437
2,400 US Federal Home Loan Mortgage Corp. 112,950
900 US Household International Inc. 44,775
2,000 US Travelers Group Inc. 121,250
1,200 US Washington Mutual Inc. 52,125
-----------
439,437
-----------
INSURANCE 2.4%
1,000 US American International Group Inc. 146,000
TECHNOLOGY SECTOR 21.1%
COMPUTERS AND OFFICE EQUIPMENT 3.6%
1,000 US Dell Computer Corp. 92,813
1,600 US E M C Corp. 71,700
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 23
<PAGE>
Dresdner RCM Large Cap Growth Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
COMPUTERS AND OFFICE EQUIPMENT (CONTINUED)
500 US Hewlett Packard Co. $ 29,937
300 US Xerox Corp. 30,488
-----------
224,938
-----------
ELECTRONICS AND NEW TECHNOLOGY 8.3%
400 US Altera Corp. 11,825
1,800 US Cisco Systems Inc. 165,712
1,100 SE Ericsson LM Telephone Co. (ADR) 31,488
1,000 US Intel Corp. 74,125
1,200 US Lucent Technologies Inc. 99,825
1,100 CA Newbridge Networks Corp. * 26,331
1,400 FI Nokia Corp. (ADR A) 101,850
-----------
511,156
-----------
TECHNOLOGY SERVICES 9.2%
1,700 US America Online Inc. 180,200
2,700 US Cendant Corp. 56,363
1,300 US Computer Associates International Inc. 72,231
1,800 US Microsoft Corp. * 195,075
1,400 US PeopleSoft Inc. * 65,800
-----------
569,669
-----------
TELEMEDIA/SERVICES SECTOR 8.9%
COMMUNICATION SERVICES 7.1%
800 US Intermedia Communications of Florida Inc. 33,550
2,700 US Nextel Communications Inc. * 67,162
800 US SBC Communications Inc. 32,000
500 US Sprint Corp. 35,250
5,600 US WorldCom Inc. * 271,250
-----------
439,212
-----------
MEDIA 1.8%
900 US CBS Corp. 28,575
1,800 US General Motors Corp. Class H 84,825
-----------
113,400
-----------
TOTAL EQUITY INVESTMENTS (COST $4,487,726) 98.0% 6,065,194
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 24
<PAGE>
Dresdner RCM Large Cap Growth Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
SHORT-TERM INVESTMENTS
MONEY MARKET FUNDS 2.0%
11,211 US SSgA U.S. Government Money Market Fund $ 11,211
111,470 US SSgA Money Market Fund 111,470
-----------
TOTAL SHORT-TERM INVESTMENTS (COST $122,681) 2.0% 122,681
-----------
TOTAL INVESTMENTS (COST $4,610,407) ** 100.0% 6,187,875
OTHER ASSETS AND LIABILITIES 0.0% (497)
-----------
NET ASSETS 100.0% $ 6,187,378
-----------
-----------
</TABLE>
- --------------------------------
* Non-income producing security.
Tax Information:
** For Federal income tax purposes, cost is $4,611,632 and unrealized
appreciation (depreciation) of equity securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 1,666,458
Unrealized depreciation (90,215)
-------------
Net unrealized
appreciation $ 1,576,243
-------------
-------------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's investments in securities at June 30, 1998, categorized by country:
<TABLE>
<CAPTION>
% OF NET ASSETS
--------------------------------------------
COUNTRY SHORT-TERM
COUNTRY CODE EQUITIES AND OTHER TOTAL
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Canada CA 0.4% 0.4%
Finland FI 1.6% 1.6%
Sweden SE 0.5% 0.5%
United Kingdom GB 1.6% 1.6%
United States US 93.9% 2.0% 95.9%
--- -- ----------
Total 98.0% 2.0% 100.0%
--- -- ----------
--- -- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 25
<PAGE>
Dresdner RCM Biotechnology Fund
Management's Performance Review
For most of the past two years, the stock market has largely ignored the
biotechnology sector -- where earnings projections are often difficult to
analyze. This was also the case in the first half of 1998, when fears that
slower economic growth would trim corporate earnings led investors to favor
stocks with reliable earnings streams. At the end of 1997, however, just before
the reporting period began, biotechnology stocks enjoyed a brief rally. This
left prices somewhat higher as we launched the Dresdner RCM Biotechnology Fund
(the "Fund"). Because prices then weakened, initial returns for the Fund were
disappointing.
For the six months ended June 30, 1998, the Fund earned a total return
of 0.40%. During the same time, biotechnology stocks in the Russell 2000 Index
returned -1.56% and health care and biotechnology stock funds tracked by Lipper
Analytical Services returned an average return of 9.72%.
MEDICAL STOCKS ENHANCE RETURNS
We used several strategies to make the most of this market climate.
Recognizing the vulnerability of biotechnology stocks to further weakness, we
allocated 35% of the portfolio to stocks of pharmaceutical and medical-device
firms that we believed to be reasonably priced. These groups outperformed,
giving the Fund's strong returns from firms such as Boston Scientific,
Sofamor/Danek Group, and MiniMed.
In the biotech sector, we used two investment themes. The first involved
firms with significant earnings potential from specific products. These included
companies such as SangStat, which produces a generic version of a drug used to
prevent rejection in organ transplants. The second theme favored companies with
certain "platform technologies" that can support a range of products. These
included companies such as Inhale, which creates nasally delivered forms of
drugs that are normally injected.
The Fund enjoyed strong performances from several holdings of larger
biotech firms such as Amgen and Genentech. Although performances from smaller
firms were generally disappointing, we believe these firms have the potential
for strong growth in two to three years.
FOCUS ON QUALITY
Returns for biotech shares could pick up in the fall of 1998, as medical
conferences raise interest in new technologies. Over time, we believe the market
should recognize the value in quality biotech firms and the stocks of such firms
should outperform as they have in the past.
Page 26
<PAGE>
Dresdner RCM Biotechnology Fund
Performance Summary
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FUND NASDAQ BIOTECH INDEX RUSSELL 2000 INDEX AMEX BIOTECH INDEX
<S> <C> <C> <C> <C>
12/97 $10,000 $10,175 $10,071 $10,042
1/98 $10,260 $10,140 $9,912 $9,734
2/98 $10,490 $10,572 $10,644 $9,936
3/98 $10,590 $11,363 $11,083 $10,791
4/98 $10,470 $11,107 $11,144 $10,830
5/98 $10,350 $10,719 $10,543 $9,971
6/98 $10,040 $10,649 $10,565 $9,079
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
The chart above shows the performance of the Dresdner RCM Biotechnology
Fund since the Fund's inception versus the American Stock Exchange Biotechnology
Index,(a) the NASDAQ Biotechnology Index,(b) and the Russell 2000 Index.(c) The
chart represents a cumulative return of 0.40%(d)(e) for the Fund. The chart
assumes a hypothetical $10,000 initial investment in the Fund and reflects all
Fund expenses.
TOTAL RETURNS(D)
JUNE 30, 1998
<TABLE>
<CAPTION>
LIFE OF
YTD FUND(E)
<S> <C>
0.40% 0.40%
</TABLE>
The data above represents past performance of the Fund and may not be
indicative of future performance. The investment return and principal value of
an investment in the Fund will fluctuate, so that shares, when redeemed, may be
worth more or less than their original cost.
- --------------------------------
(a) The American Stock Exchange Biotechnology Index is an equal-dollar
weighted index that attempts to measure the performance of a cross section
of companies in the biotechnology industry that are primarily involved in
the use of biological processes to develop products or provide services.
This index was developed with a base level of 200 stocks as of October 18,
1991.
(b) The NASDAQ Biotechnology Index is a capitalization-weighted index that
attempts to measure the performance of all NASDAQ stocks in the
biotechnology sector. This index was developed with a base value of 200
stocks as of November 1, 1993.
(c) The Russell 2000 Index is composed of the 2,000 smallest securities in the
Russell 3000 Index, which is composed of the 3,000 largest U.S. companies
based on market capitalization and represents approximately 98% of the
investable U.S. equity market.
(d) Returns assume reinvestment of all dividends and capital gains
distributions at net asset value.
(e) The Fund began operations on December 30, 1997.
Page 27
<PAGE>
Dresdner RCM Biotechnology Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
DRUGS AND HOSPITAL SUPPLIES 98.5%
6,000 US Algos Pharmaceutical Corp. * $ 162,000
6,000 US Alkermes Inc. * 107,250
3,000 US Alza Corp. * 129,750
1,200 US American Home Products Corp. 62,100
2,500 US Amgen Inc. * 163,438
7,500 US Anesta Corp. * 108,281
2,000 US Bausch & Lomb Inc. 100,250
6,000 US Biosite Diagnostics Inc. * 66,000
1,700 US Boston Scientific Corp. * 121,763
4,000 US Cerus Corp. * 56,000
3,000 US Chiron Corp. * 47,063
3,500 US DePuy Inc. 98,875
2,000 US Genentech Inc. * 135,750
4,500 US Gilead Sciences Inc. * 144,280
1,500 US Hyseq Inc. * 16,218
6,000 US Icos Corp. * 114,750
6,000 US Inhale Therapeutic Systems * 148,500
1,400 US Johnson & Johnson 103,250
5,000 US Ligand Pharmaceuticals Inc. Class B * 64,375
1,400 US Minimed Inc. * 73,325
1,200 US Monsanto Co. 67,050
6,000 US NaPro BioTherapeutics Inc. * 7,500
5,500 US Novoste Corp. * 121,344
7,400 US Penederm Inc. * 148,000
3,500 US Perclose Inc. * 98,875
8,000 US Progenics Pharmaceuticals Inc. * 119,000
4,100 US SangStat Medical Corp. * 128,638
3,000 GB Shire Pharmaceuticals Group PLC (ADR) * 64,125
4,000 US SUGEN Inc. * 65,000
8,000 US Triangle Pharmaceuticals Inc. * 119,000
2,000 US Vertex Pharmaceuticals Inc. * 45,000
-----------
3,006,750
-----------
ELECTRONICS/NEW TECHNOLOGY 1.8%
900 US Perkin Elmer Corp. 55,969
-----------
TOTAL EQUITY INVESTMENTS (COST $3,090,168) 100.3% 3,062,719
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 28
<PAGE>
Dresdner RCM Biotechnology Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
SHORT-TERM INVESTMENTS
MONEY MARKET FUNDS 3.1%
16,057 US SSgA U.S. Government Money Market Fund $ 16,057
77,990 US SSgA Money Market Fund 77,990
-----------
TOTAL SHORT-TERM INVESTMENTS (COST $94,047) 3.1% 94,047
-----------
TOTAL INVESTMENTS (COST $3,184,215) ** 103.4% 3,156,766
OTHER ASSETS LESS LIABILITIES (3.4%) (104,403)
-----------
NET ASSETS 100.0% $ 3,052,363
-----------
-----------
</TABLE>
- --------------------------------
* Non-income producing security.
Tax Information:
** At June 30, 1998, the aggregate cost of investments for book and Federal
income tax purposes was approximately the same.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's investments in securities at June 30, 1998, categorized by country:
<TABLE>
<CAPTION>
% OF NET ASSETS
-----------------------------------------
COUNTRY SHORT-TERM AND
COUNTRY CODE EQUITIES OTHER TOTAL
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
United Kingdom GB 2.1% 2.1%
United States US 98.2% (0.3%) 97.9%
------ --- ----------
Total 100.3% (0.3%) 100.0%
------ --- ----------
------ --- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 29
<PAGE>
Dresdner RCM Emerging Markets Fund
Management's Performance Review
The economic turmoil that surfaced in Asia's emerging markets during
1997 continued to deepen in the first half of 1998. Although stock prices in the
region recovered briefly in February and March, as the International Monetary
Fund helped keep countries solvent, the market soon saw there was little or no
earnings growth to support the rally. This, plus economic problems in Russia,
made the market increasingly nervous about the contagion effect on China,
Venezula, and Brazil.
Through careful stock selection and country weightings, we helped to
minimize the effects of market declines on the Dresdner RCM Emerging Markets
Fund (the "Fund"). For the six months ended June 30, 1998, the Fund earned a
total return of -8.21%. That compares to a return of -18.86% for the Morgan
Stanley Capital International Emerging Markets Index (the "Index") and an
average return of -15.60% for emerging markets funds tracked by Lipper
Analytical.
IN AND OUT OF ASIA
As 1998 began, we bought stocks in Malaysia, Korea, and the Philippines
that we thought represented good value. Given our emphasis on fundamental
research and established target prices, we reduced positions in the region as
stock prices rallied in the first quarter. By the end of the reporting period,
stocks in Asia represented about 4% of Fund assets, compared to 11% when the
period started. This left the Fund significantly underweighted in Asia versus
the Index, which had a 28% representation in Asia when the period closed.
During the period, we maintained overweighted positions in Poland and
Hungary, whose fortunes are tied to the strongly performing markets of Western
Europe, and kept an overweighted position in Mexico. We were underweighted in
the poorly performing markets of Russia, Thailand, Pakistan, and Indonesia.
The Fund further benefited from good stock selection, as well as a
strong cash position that developed as we sold positions in Asia. During the
period, the Fund's cash reserves rose from less than 10% to 35%. We remained
well-positioned in emerging Europe, as we focused on companies that benefit from
increased trade with western Europe. In Mexico, we emphasize firms that can
benefit from strong consumer demand. Whereas a large part of the Index
represents financial, real estate, and "cyclical" firms tied to economic growth,
we've underweighted cyclical, commodity, and financial industries. In the
current investment climate, we will continue looking for companies with visible
earnings growth that can gain market share even in difficult times.
Page 30
<PAGE>
Dresdner RCM Emerging Markets Fund
Performance Summary
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FUND MSCI EMERGING FREE IFC EMERGING MARKETS
<S> <C> <C> <C>
12/97 $9,990 $10,024 $10,015
1/98 $9,720 $9,238 $9,358
2/98 $10,530 $10,203 $10,314
3/98 $10,950 $10,645 $10,718
4/98 $11,120 $10,529 $10,747
5/98 $9,920 $9,087 $9,406
6/98 $9,170 $8,134 $8,444
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
The chart above shows the performance of the Dresdner RCM Emerging
Markets Fund since the Fund's inception versus the MSCI Emerging Markets Free
Index(a) and the IFC Index of Investable Emerging Markets.(b) The chart
represents a cumulative return of -8.30%(c)(d) for the Fund. The chart assumes a
hypothetical $10,000 initial investment in the Fund and reflects all Fund
expenses.
TOTAL RETURNS(C)
JUNE 30, 1998
<TABLE>
<CAPTION>
LIFE OF
YTD FUND(D)
<S> <C>
-8.21% -8.30%
</TABLE>
The data above represents past performance of the Fund and may not be
indicative of future performance. The investment return and principal value of
an investment in the Fund will fluctuate, so that shares, when redeemed, may be
worth more or less than their original cost.
- --------------------------------
(a) The MSCI Emerging Markets Free Index is a market capitalization-weighted
index composed of 981 companies in 26 emerging market countries. The average
market capitalization size of the listed companies is US$800 million.
(b) The IFC Index of Investable Emerging Markets represents the IFC Investable
regional total return composite. The term "investable" indicates that the
stocks and the weights in the IFCI index represent the amount that the
foreign institutional investors might buy by the virtue of the foreign
institutional restrictions (either at the national level or by the
individual company's corporate statute) plus factoring in minimum market
capitalization and liquidity screens.
(c) Returns assume reinvestment of all dividends and capital gains
distributions at net asset value.
(d) The Fund began operations on December 30, 1997.
Page 31
<PAGE>
Dresdner RCM Emerging Markets Fund
Investment in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
CONSUMER NON-DURABLES SECTOR 12.5%
BEVERAGE/TOBACCO 8.0%
3,700 MX Coca Cola FEMSA S.A. de C.V. (ADR) $ 64,288
3,000 CL Compania Cervecerias Unidas S.A. (ADR) 63,375
1,320 MX Fomento Economico Mexicano UBD 41,351
900 MX Panamerican Beverages Inc. 28,294
1,100 SA South African Breweries Inc. 22,784
-----------
220,092
-----------
FOOD/FOOD PROCESSING 2.0%
27,000 MX Grupo Industrial Bimbo Ser A 54,685
HOUSEHOLD/RELATED NON-DURABLES 0.9%
7,000 MX Kimberly-Clark de Mexico-A 24,733
RETAIL TRADE 1.6%
2,000 IS Tefron Ltd. * 44,000
CYCLICALS/CAPITAL GOODS SECTOR 9.4%
BUILDING/CONSTRUCTION 1.6%
6,900 MX Consorcio ARA S.A. * 21,922
600 HU Zalakeramia Rt. 21,309
-----------
43,231
-----------
CHEMICALS/TEXTILES 1.0%
850 CL Sociedad Quimica y Minera de Chile S.A. (ADR) 28,475
ELECTRICAL EQUIPMENT 2.7%
6,000 PO Elektrim S.A. 73,129
INDUSTRIAL EQUIPMENT 1.1%
1,300 HU Mezogazdasagi Gepgyarto RT * 30,899
RAW/BASIC MATERIALS 3.0%
2,200 BR Aracruz Celulose S.A. (ADR) 25,163
2,900 BR Companhia Vale do Rio Doce Pfd. 57,669
-----------
82,832
-----------
ENERGY 1.9%
ENERGY 1.9%
284,000 BR Petroleo Brasiliers S.A. (Petrobras) 52,793
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 32
<PAGE>
Dresdner RCM Emerging Markets Fund
Investment in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
HEALTH CARE SECTOR 1.9%
DRUGS & HOSPITAL SUPPLIES 1.9%
3,300 CR Pliva D.D. (GDR) $ 53,625
INTEREST SENSITIVE SECTOR 18.3%
BANKING 8.6%
2,792 PT Banco Comercial Portugues S.A. 79,276
950 PO Bank Przemyslowo-Handlowy S.A. 68,110
160 GR Ergo Bank S.A. 13,674
7,000 KR Kookmin Bank 26,001
2,550 CR Zagrebacka Banka (GDR) 50,936
-----------
237,997
-----------
GENERAL FINANCE 2.2%
1,850 PT BPI - SGPS S.A. 59,700
INSURANCE 3.9%
2,151 SA Liberty Life Assn. of Africa Ltd. (South Africa) 42,217
2,500 PT Mundial Confianca 66,452
-----------
108,669
-----------
UTILITIES 3.6%
2,175 PT Electricidade De Portugal SP (ADR) 100,186
TECHNOLOGY SECTOR 4.1%
COMPUTERS/OFFICE EQUIPMENT 1.0%
1,500 PL Computerland Poland S.A. 26,886
ELECTRONICS/NEW TECHNOLOGY 3.1%
950 TW ASE Test Ltd. * 29,450
83 KR Samsung Electronics Co. 2,569
6,844 TW Siliconware Precision Industries (GDR) 54,752
-----------
86,771
-----------
TELEMEDIA/SERVICES SECTOR 14.9%
COMMUNICATIONS SERVICES 12.4%
700 IS NICE Systems Ltd. (ADR) * 26,250
450 PT Portugal Telecom 23,850
535 BR Telebras (ADR) 58,415
2,000 AR Telecom Argentina S.A. (ADR) 59,625
440,000 BR Telecomunicacoes de Sao Paulo (Telesp) Pfd. 103,476
1,400 MX Telefonos De Mexico (ADR L) 67,288
-----------
338,904
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 33
<PAGE>
Dresdner RCM Emerging Markets Fund
Investment in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
MEDIA 2.5%
1,840 MX Grupo Televisa (ADR) $ 69,230
-----------
TOTAL EQUITY INVESTMENTS (COST $1,918,024) 63.0% 1,736,837
-----------
FIXED INCOME INVESTMENTS
U.S. GOVERNMENT SECURITIES 22.9%
630,000 US United States Treasury Notes 5.50% maturing 5/31/00 629,803
-----------
TOTAL FIXED INCOME INVESTMENTS (COST $629,803) 22.9% 629,803
-----------
TOTAL INVESTMENTS (COST $2,547,828) ** 2,366,640
OTHER ASSETS LESS LIABILITIES 14.1% 390,156
-----------
NET ASSETS 100.0% $ 2,756,796
-----------
-----------
</TABLE>
- --------------------------------
* Non-income producing security.
Tax information:
** At June 30, 1998, the aggregate cost of investments for book and Federal
income tax purposes was approximately the same.
The Fund's investments in securities at June 30, 1998, categorized by country:
<TABLE>
<CAPTION>
% OF NET ASSETS
------------------------------------------
COUNTRY SHORT-TERM
COUNTRY CODE EQUITIES AND OTHER TOTAL
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
Argentina AR 2.2% 2.2%
Brazil BR 10.8% 0.4% 11.2%
Chile CL 3.3% 3.3%
Croatia CR 3.8% 3.8%
Greece GR 0.5% 0.5%
Hong Kong HK 0.0% 0.1% 0.1%
Hungary HU 1.9% 1.9%
Israel IS 2.6% 2.6%
Korea KR 1.0% 1.0%
Mexico MX 13.6% 0.1% 13.6%
Polond PO 6.1% 0.1% 6.2%
Portugal PT 11.9% 0.1% 12.0%
South Africa SA 2.4% 2.4%
Taiwan TW 3.1% 3.1%
United States US 0.0% 36.2% 36.2%
--- --- ----------
Total 63.0% 37.0% 100.0%
--- --- ----------
--- --- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 34
<PAGE>
Dresdner RCM International Growth Equity Fund A
Management's Performance Review
In the first half of 1998, global equity prices became increasingly
sensitive to the economic problems of Asia. Prices advanced strongly in the
first quarter, as the International Monetary Fund stepped in and Asian economies
seemed to stabilize. Asian stocks gave up most of these gains in the second
quarter, however, as a recession in Japan exacerbated economic troubles in the
region. With concern that reduced trade with Asia would slow growth in other
parts of the world, stocks in the U.S. and Europe largely treaded water in the
second quarter of 1998.
By overweighting investments in Europe, and underweighting positions in
Japan and Southeast Asia, we helped the Dresdner RCM International Growth Equity
Fund A (the "Fund") perform well against its market benchmarks. The Fund also
benefited from strong stock selection in many countries.
For the six months ended June 30, 1998, the Fund earned a total return
of 15.18%. That compares to a return of 16.08% for the Morgan Stanley Europe,
Australia, Far East (EAFE) Index and 11.98% for the Morgan Stanley All Country
World Free Ex-US Index, the Fund's secondary benchmark. Over the same period,
international stock funds tracked by Lipper Analytical Services returned an
average of 15.50%.
FURTHER CUTS IN JAPAN, EASTERN EUROPE
When the reporting period began, Japanese stocks represented about 13%
of Fund assets, versus 25% of the EAFE Index. With continued sales of Japanese
shares and lagging returns in that sector, Japanese stocks represented 7% of
Fund holdings at the end of the period, versus 21% of the Index.
The Fund's performance also benefited from strong stock selection in
Europe -- particularly in the Netherlands, France, and Portugal. Among the best
performers were stocks in the technology sector. Stock selection also proved
positive in Canada and Brazil. Individual stock performances were less helpful
in Japan, especially among shares of financial firms.
We further enhanced returns by continuing to minimize investments in
Southeast Asia and by keeping a low exposure in Eastern Europe, which proved
beneficial as the Russian economy weakened. By the end of the period, the Fund's
primary exposure to emerging markets was in Latin America.
During the period, we increased positions in Europe -- adding stocks of
consumer non-durable firms and insurance companies. We also reallocated the
Fund's weighting in Canada, with purchases in the retail sector. In Japan, we
traded financial stocks for shares of companies exporting goods to other
countries that benefit from a weaker yen.
OUTLOOK
We remain positive on European and U.S. financial markets based on the
continuation of neutral central bank policies and higher liquidity in most
developed markets. While we remain concerned over the impact of the slowdown in
Asia, we do believe that investors have begun to incorporate some of the effect
into earnings expectations. Liquidity conditions in the U.S. and Europe continue
to be ample enough to provide an underpinning to equities at current valuation
levels.
We believe that European stocks with a domestic focus should perform
well in the third quarter of 1998. With strong consumer-led recoveries, the
economies of Europe should experience enough growth to offset any downturn in
exports to Asia. Meanwhile, earnings in the region should remain strong, with
many upward revisions.
Page 35
<PAGE>
Dresdner RCM International Growth Equity Fund A
Performance Summary
PERFORMANCE FROM COMMENCEMENT OF OPERATIONS PERFORMANCE FROM FIRST
PUBLIC OFFERING
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FUND EAFE ACWI
<S> <C> <C> <C>
12/28/94 $50,000 $50,000 $50,000
$47,772 $48,090 $48,146
$47,881 $47,965 $47,881
3/31/95 $50,264 $50,972 $50,586
$52,453 $52,904 $52,559
$52,815 $52,285 $52,328
6/30/95 $54,230 $51,381 $51,605
$57,845 $54,590 $54,537
$57,095 $52,520 $52,644
9/30/95 $58,320 $53,560 $53,544
$57,440 $52,140 $52,115
$57,605 $53,605 $53,340
12/31/95 $58,995 $55,770 $55,446
$60,630 $56,010 $56,206
$61,355 $56,215 $56,206
3/31/96 $63,240 $57,420 $57,251
$65,480 $59,105 $58,986
$66,315 $58,030 $58,101
6/30/96 $66,766 $58,370 $58,398
$64,611 $56,677 $56,459
$65,541 $56,813 $56,792
9/30/96 $67,021 $58,336 $58,200
$66,510 $57,753 $57,618
$69,318 $60,063 $59,843
12/31/96 $70,391 $59,306 $59,148
$71,775 $57,242 $58,060
$72,383 $58,192 $59,123
3/31/97 $72,051 $58,419 $58,998
$73,269 $58,740 $59,494
$78,028 $62,576 $63,171
6/30/97 $82,510 $66,043 $66,658
$87,546 $67,126 $68,004
$81,459 $62,125 $62,653
9/30/97 $88,100 $65,617 $66,042
$82,289 $60,591 $60,422
$82,068 $59,985 $59,667
12/31/97 $83,015 $60,524 $60,353
$85,316 $63,308 $62,158
$89,619 $67,385 $55,303
3/31/98 $93,012 $69,474 $68,598
$94,769 $70,037 $69,091
$95,314 $69,715 $67,841
6/30/98 $95,615 $70,285 $67,583
Fund EAFE ACWI
5/22/95 $50,000 $50,000 $50,000
$52,900 $49,800 $52,775
$51,160 $49,920 $51,110
6/30/95 $52,535 $49,054 $50,405
$56,035 $52,122 $53,268
$55,310 $50,146 $51,419
9/30/95 $56,495 $51,138 $52,299
$55,645 $49,777 $50,902
$55,805 $51,175 $52,098
12/31/95 $57,150 $53,250 $54,156
$58,735 $53,481 $54,898
$59,435 $53,675 $54,898
3/31/96 $61,270 $54,829 $55,919
$63,430 $56,436 $57,614
$64,240 $55,411 $56,749
6/30/96 $64,677 $55,737 $57,039
$62,105 $54,120 $55,145
$63,490 $54,250 $55,471
9/30/96 $64,924 $55,704 $56,846
$64,429 $55,147 $56,278
$67,149 $57,353 $58,450
12/31/96 $68,189 $59,303 $57,772
$69,529 $57,239 $56,709
$70,119 $58,189 $57,747
3/31/97 $69,797 $58,416 $57,626
$70,976 $58,738 $58,110
$75,587 $62,573 $61,701
6/30/97 $79,929 $66,040 $65,107
$84,807 $67,123 $66,422
$78,910 $62,122 $61,195
9/30/97 $85,343 $65,613 $64,505
$79,714 $60,587 $59,016
$79,500 $59,982 $58,278
12/31/97 $80,415 $60,521 $58,948
$82,647 $63,305 $60,711
$86,814 $67,382 $64,760
3/31/98 $90,102 $69,471 $67,001
$91,804 $70,033 $67,483
$92,332 $69,711 $66,262
6/30/98 $92,625 $70,255 $66,010
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
The charts above show the performance of the Dresdner RCM International
Growth Equity Fund A versus the Morgan Stanley Capital International Europe,
Australia, Far East Index (MSCI-EAFE)(a) and the Morgan Stanley Capital
International All Country World Free Ex-US Index (MSCI-ACWI).(b) The charts
represent cumulative returns of 91.23%(c) and 85.25%(c) for the Fund from
December 28, 1994 to June 30, 1998(d) and from May 22, 1995 to June 30, 1998,(e)
respectively. The charts assume a hypothetical $50,000 initial investment in the
Fund and reflect all Fund expenses.
AVERAGE ANNUAL TOTAL RETURNS(C)
JUNE 30, 1998
<TABLE>
<CAPTION>
LIFE OF FUND
ANNUALIZED SINCE
1 YEAR 12/28/94(D) 5/22/95(E)
<S> <C> <C>
15.89% 20.30% 21.95%
</TABLE>
The data above represents past performance of the Fund and may not be
indicative of future performance. The investment return and principal value of
an investment in the Fund will fluctuate, so that shares, when redeemed, may be
worth more or less than their original cost.
- --------------------------------
(a) The MSCI-EAFE Index is an arithmetic, market value-weighted average of the
performance of over 900 securities listed on the stock exchanges of
countries in Europe, Australia, and the Far East. The index is calculated on
a total return basis, which includes reinvestment of gross dividends before
deduction of withholding taxes.
(b) The MSCI-ACWI Index is a market capitalization-weighted index composed of
companies representative of the market structure of 47 developed and
emerging market countries excluding the United States. Stock selection
excludes securities which are not purchasable by foreigners. The index is
calculated on a total return basis, which includes reinvestment of gross
dividends before deduction of withholding taxes.
(c) Returns assume reinvestment of all dividends and capital gains
distributions at net asset value.
(d) The Fund commenced operations on December 28, 1994.
(e) The Fund's shares were first offered to the public on May 22, 1995.
Page 36
<PAGE>
Dresdner RCM International Growth Equity Fund A
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
CONSUMER DURABLES SECTOR 4.4%
AUTOMOTIVE RELATED 2.2%
1,450 DE Volkswagen AG $ 1,400,168
46,000 SE Volvo AB 1,369,915
-------------
2,770,083
-------------
CONSUMER DURABLES 2.2%
90,000 SE Electrolux AB 1,546,092
15,300 JP Sony Corp. 1,317,397
-------------
2,863,489
-------------
CONSUMER NON-DURABLES SECTOR 15.3%
BEVERAGE/TOBACCO 1.8%
51,000 MX Coca Cola FEMSA S.A. de C.V. (ADR) 886,125
5,600 CL Compania Cervecerias Unidas S.A. (ADR) 118,300
38,600 MX Fomento Economico Mexicano UBD 1,219,937
-------------
2,224,362
-------------
FOOD/FOOD PROCESSING 2.3%
20 JP Hokuto Corp. 562
580 CH Nestle S.A. 1,241,209
34,000 NL Koninklijke Numico N.V. 1,064,682
19,000 NL Nutreco Holding N.V. 665,021
-------------
2,971,474
-------------
HOUSEHOLD/RELATED NONDURABLES 1.7%
25,500 NL Benckiser N.V. * 1,568,192
162,500 MX Kimberly Clark de Mexico S.A. de C.V. 574,155
-------------
2,142,347
-------------
LEISURE TIME PRODUCTS/SERVICES 3.2%
8,000 FR Accor S.A. 2,238,825
13,400 JP Nintendo Co. Ltd. 1,240,696
13,000 ES Sol Melia S.A. 619,897
-------------
4,099,418
-------------
RETAIL TRADE 6.3%
11,300 DE Adidas AG 1,968,855
37,380 NL Koninklijke Ahold N.V. 1,199,925
38,000 ES Centros Comerciales Continente S.A. 868,770
58,000 CA Hudsons Bay Co. 1,329,170
69,000 GB Kingfisher PLC 1,110,970
28,300 CA Loblaw Cos. Ltd. 671,637
1,500 FR Promodes S.A. 831,124
-------------
7,980,451
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 37
<PAGE>
Dresdner RCM International Growth Equity Fund A
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
CYCLICAL/CAPITAL GOODS SECTOR 5.1%
BUILDING/CONSTRUCTION 1.4%
23,030 NL Hunter Douglas N.V. $ 1,251,002
267,100 GB Wimpey (George) PLC 514,733
-------------
1,765,735
-------------
ELECTRICAL EQUIPMENT 1.4%
22,000 NL Philips Electronics N.V. 1,849,356
INDUSTRIAL EQUIPMENT 1.7%
14,000 DE Mannesmann AG 1,438,754
19,000 NO Tomra Systems A/S 569,490
4,400 DE Winkler & Dunnebier AG * 197,448
-------------
2,205,692
-------------
TRANSPORTATION SERVICES 0.6%
29,000 GB Railtrack Group PLC 710,797
ENERGY SECTOR 2.7%
ENERGY 2.7%
117,000 GB British-Borneo Petroleum Syndicate PLC 584,667
95,100 IT ENI SpA 623,282
26,000 NO Petroleum Geo-Services A/S * 809,796
203,000 GB Shell Transportation & Trading Co. PLC 1,429,337
-------------
3,447,082
-------------
HEALTH CARE SECTOR 14.2%
DRUGS AND HOSPITAL SUPPLIES 14.2%
5,200 HU Gedeon Richter Ltd. (GDR 144A) (a) * 410,800
83,487 GB Glaxo Wellcome PLC 2,505,971
26,000 GB Glaxo Wellcome PLC (ADR) 1,555,125
1,590 CH Novartis AG 2,645,786
23,000 FI Orion Yhtyma OY Series B 708,468
30,000 FR Rhone-Poulenc S.A. Class A 1,692,020
205 CH Roche Holdings Ltd. 2,013,087
55,000 GB Smithkline Beecham PLC 671,279
36,000 GB Smithkline Beecham PLC (ADR) 2,178,000
12,300 FR Synthelabo 2,075,081
32,200 GB Zeneca Group PLC 1,381,824
4,800 GB Zeneca Group PLC (ADR) 210,600
-------------
18,048,041
-------------
HEALTH CARE SERVICES 0.0%
800 JP Nichii Gakken Co. 26,573
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 38
<PAGE>
Dresdner RCM International Growth Equity Fund A
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
INTEREST SENSITIVE SECTOR 26.3%
BANKING 16.9%
31,000 ES Banco Bilbao Viscaya S.A. $ 1,593,638
22,500 ES Banco Central Hispanoamericano S.A. 708,407
85,041 PT Banco Comercial Portugues S.A. 2,414,681
66,001 IE Bank of Ireland 1,352,300
46,300 CA Bank of Nova Scotia, Halifax 1,146,054
175,000 GB Bank of Scotland 1,959,235
57,000 GB Barclays PLC 1,643,405
18,000 DE Bayerische Vereinsbank AG 1,525,733
7,300 FR Credit Commercial de France S.A. 614,569
503,000 IT Credito Italiano SpA 2,633,071
25,000 DE Deutsche Bank AG 2,113,534
298 GB HSBC Holdings PLC 7,288
141,400 SE Nordbanken Holding AB 1,037,236
7,450 CH UBS AG 2,770,152
-------------
21,519,303
-------------
GENERAL FINANCE 2.5%
69,800 AY AMP Ltd. * 816,923
15,000 DE Deutsche Pfandbrief und Hypothekenbank AG 1,199,977
23,000 CA Newcourt Credit Group Inc. 1,130,026
-------------
3,146,926
-------------
INSURANCE 6.4%
20,400 FR AXA-UAP S.A. 2,294,399
7,400 DE Allianz AG Holding 2,465,937
217 DE Allianz AG Holding 71,711
525,000 IT INA - Instituto Nazionala delle Assianzioni 1,491,519
3,600 DE Munchener Ruckversicherungs-Gesellschaft 1,787,002
-------------
8,110,568
-------------
UTILITIES 0.5%
14,000 PT Electricidade De Portugal SP (ADR) 644,875
TECHNOLOGY SECTOR 17.1%
COMPUTERS/OFFICE EQUIPMENT 0.5%
700 JP Canon Sales Co. Inc. 9,513
60,000 HP RICOH Co. Ltd. 631,624
-------------
641,137
-------------
ELECTRONICS/NEW TECHNOLOGY 6.1%
23,000 TW ASE Test Ltd. * 713,000
8,800 JP Advantest Corp. 473,019
93,000 JP NEC Corp. 866,441
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 39
<PAGE>
Dresdner RCM International Growth Equity Fund A
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
ELECTRONICS/NEW TECHNOLOGY (CONTINUED)
21,600 FI Nokia Corp. Series A $ 1,588,558
9,000 FI Nokia Corp. (ADR A) 654,750
17,700 CA Northern Telecom Ltd. 1,004,475
15,000 JP Rohm Co. Ltd. 1,540,152
26,000 JP Shinko Electric Industries 946,068
-------------
7,786,463
-------------
TECHNOLOGY SERVICES 10.5%
12,000 NL ASM Lithography Holdings N.V. * 355,123
8,000 FR Atos S.A. * 1,918,615
11,000 FR Cap Gemini 1,728,407
12,100 IE CBT Group PLC (ADR) * 647,350
54,212 NL Getronics N.V. 2,811,574
24 JP NTT Data Corp. 866,376
4,900 DE SAP AG 2,972,520
176,000 GB SEMA Group PLC 2,070,274
-------------
13,370,239
-------------
TELEMEDIA/SERVICES SECTOR 12.7%
BUSINESS SERVICES 4.3%
5,900 CH Adecco S.A. 2,660,580
29,500 CH Adecco S.A. Rights Exp. 7/1/1998 * 295
71,723 GB Granada Group PLC 1,318,761
24,000 NL Randstad Holding N.V. 1,445,270
-------------
5,424,906
-------------
COMMUNICATIONS SERVICES 6.4%
13,571 FR Alcatel Alsthom Compagnie Generale d'Electricitie 2,763,120
42,000 JP Matsushita Communications Industrial Co. 1,107,612
65,050 JP Nippon Denwa Shisetsu 217,950
3,777,000 BR Telecomunicacoes de Sao Paulo (Telesp) Pfd. 888,239
19,000 ES Telefonica de Espana 879,940
227,000 IT Telecom Italia SpA 1,671,005
48,000 GB Vodafone Group PLC 609,069
-------------
8,136,935
-------------
MEDIA 2.0%
194,000 IT Mediaset SpA * 1,238,176
198,000 GB WPP Group 1,297,500
-------------
2,535,676
-------------
TOTAL EQUITY INVESTMENTS (COST $99,630,724) 97.8% 124,421,928
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 40
<PAGE>
Dresdner RCM International Growth Equity Fund A
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
SHORT-TERM INVESTMENTS
MONEY MARKET FUNDS 1.5%
963,605 SSgA U.S. Government Money Market Fund $ 963,605
963,739 SSgA Money Market Fund 963,739
-------------
1,927,344
-------------
TOTAL SHORT-TERM INVESTMENTS (COST $1,927,344) 1.5% 1,927,344
-------------
TOTAL INVESTMENTS (COST $101,558,068) ** 99.3% 126,349,272
OTHER ASSETS LESS LIABILITIES 0.7% 865,989
-------------
NET ASSETS 100.0% $ 127,215,261
-------------
-------------
</TABLE>
- --------------------------------
* Non-income producing security.
(a) Security is purchased pursuant to Rule 144A of the Securities Act of 1933
and may be resold only to qualified institutional buyers.
Tax Information:
** For Federal income tax purposes, cost is $102,284,759 and appreciation
(depreciation) of equity securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 27,429,863
Unrealized depreciation (3,365,350)
-------------
Net unrealized
appreciation $ 24,064,513
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 41
<PAGE>
Dresdner RCM International Growth Equity Fund A
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
The Fund's investments in securities at June 30, 1998, categorized by country:
<TABLE>
<CAPTION>
% OF NET ASSETS
--------------------------------------------
COUNTRY SHORT-TERM
COUNTRY CODE EQUITIES AND OTHER TOTAL
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Australia AU 0.6% 0.6%
Brazil BR 0.7% 0.7%
Canada CA 4.2% 4.2%
Chile CL 0.1% 0.1%
Finland FI 2.3% 2.3%
France FR 12.7% 0.3% 13.0%
Germany DE 13.5% 13.5%
Hungary HU 0.3% 0.3%
Ireland IE 1.6% 1.6%
Italy IT 6.0% 6.0%
Japan JP 7.2% 0.1% 7.3%
Mexico MX 2.1% 2.1%
Netherlands NL 9.6% 9.6%
Norway NO 1.1% 1.1%
Portugal PT 2.4% 2.4%
Spain ES 3.7% 3.7%
Sweden SE 3.1% 3.1%
Switzerland CH 8.9% 8.9%
Taiwan TW 0.6% 0.6%
United Kingdom GB 17.1% 0.2% 17.3%
United States US 0.0% 1.6% 1.6%
--- -- ----------
Total 97.8% 2.2% 100.0%
--- -- ----------
--- -- ----------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
JUNE 30, 1998
<TABLE>
<CAPTION>
DELIVERY CONTRACT UNREALIZED
FACE VALUE DATE PRICE APPRECIATION
----------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Sale:
Japanese Yen 823,722,900 10/5/98 130.1300 $ 288,281
781,140,000 10/5/98 130.1900 $ 270,612
Buy:
Japanese Yen 151,570,440 10/5/98 133.6600 $ (22,284)
302,943,060 10/5/98 141.4300 $ 79,981
94,074,750 10/5/98 135.7500 $ (2,995)
-------------
Total open forward foreign currency
contracts (Note 1) $ 613,595
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 42
<PAGE>
Dresdner RCM Global Funds
Statements of Assets and Liabilities
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
DRESDNER RCM
--------------------------------------------------------------------------------------------
GLOBAL GLOBAL GLOBAL LARGE CAP BIO- EMERGING
TECHNOLOGY SMALL HEALTH CARE GROWTH TECHNOLOGY MARKETS INTERNATIONAL
FUND CAP FUND FUND FUND FUND FUND FUND
------------ ----------- ----------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments at cost $ 5,768,825 $ 4,868,598 $4,666,149 $ 4,487,726 $3,090,168 $ 2,547,828 $ 101,558,068
------------ ----------- ----------- ----------- ----------- ----------- -------------
------------ ----------- ----------- ----------- ----------- ----------- -------------
Foreign currency at cost $ 172,933 $ 34,343 $ -- $ -- $ -- $ 21,681 $ 899,897
------------ ----------- ----------- ----------- ----------- ----------- -------------
------------ ----------- ----------- ----------- ----------- ----------- -------------
Short-term investments at cost $ 1,126,520 $ 298,573 $ 51,960 $ 122,681 $ 94,047 $ -- $ --
------------ ----------- ----------- ----------- ----------- ----------- -------------
------------ ----------- ----------- ----------- ----------- ----------- -------------
Investments at value (Note 1) $ 8,820,926 $ 5,750,702 $5,114,466 $ 6,065,194 $3,062,719 $ 2,366,640 $ 126,349,272
Foreign currency at value (Note
1) 172,940 34,173 -- -- -- 21,582 904,038
Cash -- -- -- -- -- 942,439 --
Short-term investments at value
(Note 1) 1,126,520 298,573 51,960 122,681 94,047 -- --
Receivables:
Investments sold 141,120 95,827 109,347 9,165 76,291 33,425 17,200,860
Fund shares sold 57,627 20,000 5,000 -- 500 -- 2,000
Open forward foreign currency
contracts (Note 1) -- -- -- -- -- -- 613,595
Dividends and dividend reclaims 9,464 9,229 1,784 3,120 523 8,232 222,422
Interest 1,049 624 192 800 148 6,858 27,367
Investment Manager (Note 6) -- 10,804 11,438 15,875 18,380 54,117 16,095
Prepaid expenses -- 4,564 4,936 4,594 7,537 6,211 3,812
Organizational costs (Note 5) 37,511 7,009 7,008 7,008 9,001 18,015 --
------------ ----------- ----------- ----------- ----------- ----------- -------------
Total Assets 10,367,157 6,231,505 5,306,131 6,228,437 3,269,146 3,457,519 145,339,461
------------ ----------- ----------- ----------- ----------- ----------- -------------
LIABILITIES:
Payables:
Investments purchased 220,299 193,550 94,885 -- 180,459 658,381 17,951,930
Fund shares repurchased 12,721 54 -- -- -- -- --
Management fees (Note 6) -- -- -- -- -- -- 77,587
Audit fees 9,806 9,296 9,545 9,545 8,628 8,828 17,387
Directors' fees and expenses
(Note 8) 5,606 5,268 5,270 5,270 5,526 5,526 18,255
Legal fees 3,814 5,067 5,067 4,767 4,998 4,998 8,994
Transfer agent fees 3,342 3,445 3,442 3,490 3,173 3,177 2,484
Accounting fees 2,759 2,500 2,500 2,500 -- 5,002 8,674
Printing expense 2,126 2,106 2,116 2,106 2,118 2,160 4,722
Custodian fees 1,085 2,925 442 683 352 10,002 26,354
12b-1 fees (Note 7) -- 6,409 6,274 4,209 3,884 -- --
Organizational costs (Note 5) -- 7,532 7,532 7,532 5,100 -- --
Miscellaneous expenses 9,098 1,800 1,839 957 2,545 2,649 7,813
------------ ----------- ----------- ----------- ----------- ----------- -------------
Total Liabilities 270,656 239,952 138,912 41,059 216,783 700,723 18,124,200
------------ ----------- ----------- ----------- ----------- ----------- -------------
NET ASSETS $ 10,096,501 $ 5,991,553 $5,167,219 $ 6,187,378 $3,052,363 $ 2,756,796 $ 127,215,261
------------ ----------- ----------- ----------- ----------- ----------- -------------
------------ ----------- ----------- ----------- ----------- ----------- -------------
NET ASSETS CONSIST OF:
Paid-in capital (Note 3) $ 6,678,295 $ 4,400,245 $4,045,943 $ 4,033,313 $3,041,587 $ 3,006,105 $ 101,501,498
Accumulated net investment income
(loss) (36,316) (21,011) (15,915) 2,342 (13,020) 28,716 64,263
Accumulated net realized gain
(loss) on investment and foreign
currency transactions 401,058 730,659 688,874 574,255 51,245 (96,588) 231,975
Net unrealized appreciation
(depreciation) on foreign
currency transactions 1,362 (444) -- -- -- (249) 626,321
Net unrealized appreciation
(depreciation) on investments 3,052,102 882,104 448,317 1,577,468 (27,449) (181,188) 24,791,204
------------ ----------- ----------- ----------- ----------- ----------- -------------
NET ASSETS $ 10,096,501 $ 5,991,553 $5,167,219 $ 6,187,378 $3,052,363 $ 2,756,796 $ 127,215,261
------------ ----------- ----------- ----------- ----------- ----------- -------------
------------ ----------- ----------- ----------- ----------- ----------- -------------
SHARES OUSTANDING 564,628 429,491 403,503 402,485 303,991 300,546 8,063,844
------------ ----------- ----------- ----------- ----------- ----------- -------------
------------ ----------- ----------- ----------- ----------- ----------- -------------
NET ASSET VALUE PER SHARE $ 17.88 $ 13.95 $ 12.81 $ 15.37 $ 10.04 $ 9.17 $ 15.78
------------ ----------- ----------- ----------- ----------- ----------- -------------
------------ ----------- ----------- ----------- ----------- ----------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 43
<PAGE>
Dresdner RCM Global Funds
Statements of Operations
For the Six Months Ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
DRESDNER RCM
-------------------------------------------------------------------------------------------
GLOBAL GLOBAL GLOBAL LARGE CAP EMERGING
TECHNOLOGY SMALL HEALTH CARE GROWTH BIOTECHNOLOGY MARKETS INTERNATIONAL
FUND CAP FUND FUND FUND FUND FUND FUND
----------- ----------- ----------- ----------- -------------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Dividends $ 22,163 $ 23,792 $ 22,308 $ 21,914 $ 5,111 $ 39,817 $1,276,933
Interest 15,550 2,897 622 3,744 4,940 15,898 77,151
Foreign tax withheld (1,604) (2,738) (1,211) (144) -- (4,123) (162,830)
----------- ----------- ----------- ----------- -------------- --------- ------------
Total income 36,109 23,951 21,719 25,514 10,051 51,592 1,191,254
----------- ----------- ----------- ----------- -------------- --------- ------------
Expenses:
Investment management fees
(Note 6) 41,619 25,706 25,089 19,630 15,540 15,309 439,543
Transfer agent expense 12,064 9,898 9,798 9,898 11,922 12,022 8,597
Registration & filing 11,874 11,874 11,874 11,874 11,874 20,082 11,940
Printing expense 8,951 7,718 7,551 7,751 2,118 14,818 6,451
Accounting expense 6,500 7,500 7,500 7,500 1,875 10,002 24,674
Audit fees 5,628 5,628 5,628 5,628 10,128 10,828 8,674
Directors' fees and expenses
(Note 8) 7,526 5,526 5,526 5,526 5,526 5,526 23,832
Amortization of
organizational costs (Note
5) 7,439 991 991 991 991 1,985 --
Legal fees 4,998 498 498 198 4,998 4,998 1,336
Custodian fees 3,567 8,016 2,208 2,232 1,056 26,916 72,934
Insurance expense 3,090 3,990 3,990 3,990 774 774 7,793
12b-1 fees (Note 7) -- 6,409 6,274 4,209 3,884 -- --
Miscellaneous expenses -- 403 700 503 1,797 1,795 800
----------- ----------- ----------- ----------- -------------- --------- ------------
Total expenses before
reimbursements 113,256 94,157 87,627 79,930 72,483 125,055 606,574
Expenses reimbursed by
investment manager (Note 6) (40,831) (49,195) (49,993) (53,286) (49,176) (102,092) (20,570)
----------- ----------- ----------- ----------- -------------- --------- ------------
Total net expenses 72,425 44,962 37,634 26,644 23,307 22,963 586,004
----------- ----------- ----------- ----------- -------------- --------- ------------
Net investment income
(loss) (36,316) (21,011) (15,915) (1,130) (13,256) 28,629 605,250
----------- ----------- ----------- ----------- -------------- --------- ------------
NET REALIZED AND UNREALIZED GAIN
(LOSS):
Net realized gain (loss) on
investments 500,009 752,231 619,241 459,147 51,245 (88,029) (2,067,053)
Net realized loss on foreign
currency transactions (7,291) (29,631) (2,576) -- -- (8,187) (345,865)
----------- ----------- ----------- ----------- -------------- --------- ------------
Net realized gain (loss) 492,718 722,600 616,665 459,147 51,245 (96,216) (2,412,918)
----------- ----------- ----------- ----------- -------------- --------- ------------
Net change in unrealized
appreciation (depreciation)
on foreign currency
transactions 1,362 393 414 -- -- (198) (297,458)
Net change in unrealized
appreciation (depreciation)
on investments 1,799,338 455,963 (139,739) 686,627 (27,449) (177,278) 18,236,672
----------- ----------- ----------- ----------- -------------- --------- ------------
Net unrealized appreciation
(depreciation) 1,800,700 456,356 (139,325) 686,627 (27,449) (177,476) 17,939,214
----------- ----------- ----------- ----------- -------------- --------- ------------
Net realized and unrealized
gain (loss) during the period 2,293,418 1,178,956 477,340 1,145,774 23,796 (273,692) 15,526,296
----------- ----------- ----------- ----------- -------------- --------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $2,257,102 $ 1,157,945 $ 461,425 $ 1,144,644 $ 10,540 $(245,063) $16,131,546
----------- ----------- ----------- ----------- -------------- --------- ------------
----------- ----------- ----------- ----------- -------------- --------- ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 44
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
Page 45
<PAGE>
<TABLE>
<CAPTION>
Dresdner RCM Global Funds
Statements of Changes in Net Assets
DRESDNER RCM
-----------------------------------------------------------------
GLOBAL TECHNOLOGY GLOBAL SMALL CAP GLOBAL HEALTH CARE
FUND FUND FUND
--------------------- -------------------- --------------------
(UNAUDITED) (UNAUDITED)
(UNAUDITED) SIX SIX
SIX MONTHS YEAR MONTHS YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, DEC. 31, JUNE 30, DEC. 31, JUNE 30, DEC. 31,
1998 1997 1998 1997 1998 1997
---------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ (36,316) $ (70,515) $ (21,011) $ (51,716) $ (15,915) $ (25,624)
Net realized gain (loss) on
investments and foreign currency
transactions 492,718 792,152 722,600 629,901 616,665 626,824
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions 1,800,700 517,549 456,356 425,304 (139,325) 587,642
---------- --------- --------- --------- --------- ---------
Net increase (decrease) in net assets
resulting from operations 2,257,102 1,239,186 1,157,945 1,003,489 461,425 1,188,842
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Note 1) -- -- -- -- -- --
Net realized gain on investments
(Note 1) -- (947,092) -- (570,126) -- (528,991)
NET INCREASE FROM CAPITAL SHARE
TRANSACTIONS (NOTE 3) 889,065 1,541,401 378,026 22,219 34,858 11,085
---------- --------- --------- --------- --------- ---------
TOTAL INCREASE IN NET ASSETS 3,146,167 1,833,495 1,535,971 455,582 496,283 670,936
NET ASSETS:
Beginning of period 6,950,334 5,116,839 4,455,582 4,000,000 4,670,936 4,000,000
---------- --------- --------- --------- --------- ---------
End of period $10,096,501 $6,950,334 $5,991,553 $4,455,582 $5,167,219 $4,670,936
---------- --------- --------- --------- --------- ---------
---------- --------- --------- --------- --------- ---------
End of period net assets include
accumulated net investment income
(loss) of: $ (36,316) -- $ (21,011) -- $ (15,915) --
---------- --------- --------- --------- --------- ---------
---------- --------- --------- --------- --------- ---------
</TABLE>
- ------------------------------------
* Commencement of investment operations.
Page 46
<PAGE>
<TABLE>
<CAPTION>
Dresdner RCM Global Funds
Statements of Changes in Net Assets
DRESDNER RCM
- ---------------------------------------------------------------------------------------------
LARGE CAP GROWTH
FUND BIOTECHNOLOGY FUND EMERGING MARKETS FUND INTERNATIONAL FUND
- -------------------- ---------------------- ---------------------- -----------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
SIX SIX DEC. 30, SIX DEC. 30, (UNAUDITED)
MONTHS YEAR MONTHS 1997* MONTHS 1997* SIX MONTHS
ENDED ENDED ENDED TO ENDED TO ENDED YEAR ENDED
JUNE 30, DEC. 31, JUNE 30, DEC. 31, JUNE 30, DEC. 31, JUNE 30, DEC. 31,
1998 1997 1998 1997 1998 1997 1998 1997
- --------- --------- --------- ----------- --------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (1,130) $ 4,754 $ (13,256) $ 236 $ 28,629 $ 87 $ 605,250 $ 335,703
459,147 374,542 51,245 -- (96,216) (372) (2,412,918) 10,197,416
686,627 890,841 (27,449) -- (177,476) (3,961) 17,939,214 (43,121)
- --------- --------- --------- ----------- --------- ----------- ----------- ----------
1,144,644 1,270,137 10,540 236 (245,063) (4,246) 16,131,546 10,489,998
-- (4,011) -- -- -- -- -- (910,716)
-- (256,705) -- -- -- -- -- (7,545,935)
17,500 15,813 41,587 3,000,000 6,105 3,000,000 12,640,786 43,804,633
- --------- --------- --------- ----------- --------- ----------- ----------- ----------
1,162,144 1,025,234 52,127 3,000,236 (238,958) 2,995,754 28,772,332 45,837,980
5,025,234 4,000,000 3,000,236 -- 2,995,754 -- 98,442,929 52,604,949
- --------- --------- --------- ----------- --------- ----------- ----------- ----------
$6,187,378 $5,025,234 $3,052,363 $3,000,236 $2,756,796 $2,995,754 $127,215,261 $98,442,929
- --------- --------- --------- ----------- --------- ----------- ----------- ----------
- --------- --------- --------- ----------- --------- ----------- ----------- ----------
$ 2,342 -- $ (13,020) $ 236 $ 28,716 $ 87 $ 64,263 $ (540,987)
- --------- --------- --------- ----------- --------- ----------- ----------- ----------
- --------- --------- --------- ----------- --------- ----------- ----------- ----------
</TABLE>
Page 47
<PAGE>
<TABLE>
<CAPTION>
Dresdner RCM Global Funds
Financial Highlights
For a share outstanding throughout each fiscal year or period ended
DRESDNER RCM
-----------------------------------------------------
GLOBAL TECHNOLOGY FUND
-----------------------------------------------------
(UNAUDITED)
SIX MONTHS
ENDED
JUNE 30, 1998 1997 1996 1995(2)
--------------- --------- --------- -----------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
(1)
Net asset value, beginning of
period $ 13.69 $ 12.60 $ 10.04 $ 10.00
--------------- --------- --------- -----------
Net investment income (loss) (0.07) (0.16) (0.15) --
Net realized and unrealized gain
(loss) on investments 4.26 3.46 2.80 0.04
--------------- --------- --------- -----------
Net increase (decrease) in net
asset value resulting from
investment operations 4.19 3.30 2.65 0.04
--------------- --------- --------- -----------
Distributions:
Net investment income -- -- -- --
Net realized gain on
investments -- (2.21) (0.09) --
--------------- --------- --------- -----------
Total distributions -- (2.21) (0.09) --
--------------- --------- --------- -----------
NET ASSET VALUE, END OF PERIOD $ 17.88 $ 13.69 $ 12.60 $ 10.04
--------------- --------- --------- -----------
--------------- --------- --------- -----------
TOTAL RETURN (6) 30.61% 27.08% 26.41% %0.40
--------------- --------- --------- -----------
--------------- --------- --------- -----------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in
000's) $10,097 $ 6,950 $ 5,117 $ 954
--------------- --------- --------- -----------
--------------- --------- --------- -----------
Ratio of expenses to average net
assets:
With reimbursement (Note 6) 1.75%(10) 1.75% 1.73% %0.00(9)
--------------- --------- --------- -----------
--------------- --------- --------- -----------
Without reimbursement 2.74%(10) 2.45% 7.75% --
--------------- --------- --------- -----------
--------------- --------- --------- -----------
Ratio of net investment income to
average net assets:
With reimbursement (Note 6) (0.88)%(10) (1.15)% (1.34)% (0.02)%(9)
--------------- --------- --------- -----------
--------------- --------- --------- -----------
Without reimbursement (1.86)%(10) (1.86)% (7.36)% --
--------------- --------- --------- -----------
--------------- --------- --------- -----------
Portfolio turnover 65.80% 189.41% 155.58% %0.00
--------------- --------- --------- -----------
--------------- --------- --------- -----------
Average commission rate paid per
share (7) $0.0755 $ 0.0678 $ 0.0599 $ --
--------------- --------- --------- -----------
--------------- --------- --------- -----------
<CAPTION>
Dresdner RCM Global Funds
Financial Highlights
For a share outstanding throughout
GLOBAL SMALL CAP FUND GLOBAL HEALTH CARE FUND
----------------------------------------- -----------------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED ENDED
JUNE 30, 1998 1997 1996(3) JUNE 30, 1998 1997 1996(3)
--------------- --------- ----------- --------------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
(1)
Net asset value, beginning of
period $ 11.09 $ 10.00 $ 10.00 $ 11.65 $ 10.00 $ 10.00
--------------- --------- ----------- --------------- --------- -----------
Net investment income (loss) (0.05) (0.13) -- (0.04) (0.06) --
Net realized and unrealized gain
(loss) on investments 2.91 2.64 -- 1.20 3.03 --
--------------- --------- ----------- --------------- --------- -----------
Net increase (decrease) in net
asset value resulting from
investment operations 2.86 2.51 -- 1.16 2.97 --
--------------- --------- ----------- --------------- --------- -----------
Distributions:
Net investment income -- -- -- -- -- --
Net realized gain on
investments -- (1.42) -- -- (1.32) --
--------------- --------- ----------- --------------- --------- -----------
Total distributions -- (1.42) -- -- (1.32) --
--------------- --------- ----------- --------------- --------- -----------
NET ASSET VALUE, END OF PERIOD $ 13.95 $ 11.09 $ 10.00 $ 12.81 $ 11.65 $ 10.00
--------------- --------- ----------- --------------- --------- -----------
--------------- --------- ----------- --------------- --------- -----------
TOTAL RETURN (6) 25.79% 25.48% 0.00% 9.96% 30.00% 0.00%
--------------- --------- ----------- --------------- --------- -----------
--------------- --------- ----------- --------------- --------- -----------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in
000's) $ 5,992 $ 4,456 $ 4,000 $ 5,167 $ 4,671 $ 4,000
--------------- --------- ----------- --------------- --------- -----------
--------------- --------- ----------- --------------- --------- -----------
Ratio of expenses to average net
assets:
With reimbursement (Note 6) 1.75%(10) 1.75% 0.00%(9) 1.50%(10) 1.50% 0.00%(9)
--------------- --------- ----------- --------------- --------- -----------
--------------- --------- ----------- --------------- --------- -----------
Without reimbursement 3.66%(10) 3.09% -- 3.49%(10) 2.93% --
--------------- --------- ----------- --------------- --------- -----------
--------------- --------- ----------- --------------- --------- -----------
Ratio of net investment income to
average net assets:
With reimbursement (Note 6) (0.82)%(10) (1.14)% 0.00%(9) (0.63)%(10) (0.55)% 0.00%(9)
--------------- --------- ----------- --------------- --------- -----------
--------------- --------- ----------- --------------- --------- -----------
Without reimbursement (2.73)%(10) (2.49)% -- (2.63)%(10) 1.98% --
--------------- --------- ----------- --------------- --------- -----------
--------------- --------- ----------- --------------- --------- -----------
Portfolio turnover 88.00% 153.49% 0.00% 71.69% 157.65% 0.00%
--------------- --------- ----------- --------------- --------- -----------
--------------- --------- ----------- --------------- --------- -----------
Average commission rate paid per
share (7) $0.0169 $ 0.0202 $ 0.0465 $0.0508 $ 0.0528 $ 0.0324
--------------- --------- ----------- --------------- --------- -----------
--------------- --------- ----------- --------------- --------- -----------
</TABLE>
- -----------------------------------------
(1) Calculated using the average share method.
(2) Commencement of operation was December 27, 1995.
(3) Commencement of operation was December 31, 1996.
(4) Commencement of operation was December 30, 1997.
(5) Commencement of operation was December 28, 1994.
(6) Total return measures the change in value of an investment over the period
indicated.
(7) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for security trades
on which commissions are charged.
This amount may vary from period to period and fund to fund depending on the
mix of trades executed in various markets where trading practices and commission
rate structures may differ.
(8) Stock split 10:1 at the close of business on June 17, 1996. All prior
period per share amounts were restated to reflect the stock split.
(9) Not annualized. Fund was in operations for less than five days.
(10) Annualized.
The accompanying notes are an integral part of the financial statements.
Page 48
<PAGE>
<TABLE>
<CAPTION>
Dresdner RCM Global Funds
Financial Highlights
For a share outstanding throughout each fiscal year or period ended
DRESDNER RCM
----------------------------------------------------------------------------
LARGE CAP GROWTH FUND BIOTECHNOLOGY FUND
--------------------------------------------- ----------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED ENDED
JUNE 30, 1998 1997 1996(3) JUNE 30, 1998 1997(4)
------------------ --------- ----------- --------------- ----------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE: (1)
Net asset value, beginning
of period $ 12.53 $ 10.00 $ 10.00 $ 10.00 $ 10.00
-------- --------- ----------- --------------- ----------
Net investment income (loss) -- 0.01 -- (0.04) --
Net realized and unrealized
gain (loss) on investments 2.84 3.17 -- 0.08 --
-------- --------- ----------- --------------- ----------
Net increase (decrease) in
net asset value resulting
from investment operations 2.84 3.18 -- 0.04 --
-------- --------- ----------- --------------- ----------
Distributions:
Net investment income -- (0.01) -- -- --
Net realized gain on
investments -- (0.64) -- -- --
-------- --------- ----------- --------------- ----------
Total distributions -- (0.65) -- -- --
-------- --------- ----------- --------------- ----------
NET ASSET VALUE, END OF PERIOD $ 15.37 $ 12.53 $ 10.00 $ 10.04 $ 10.00
-------- --------- ----------- --------------- ----------
-------- --------- ----------- --------------- ----------
TOTAL RETURN (6) 22.67% 31.99% 0.00% 0.40% 0.00%
-------- --------- ----------- --------------- ----------
-------- --------- ----------- --------------- ----------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in
000's) $ 6,187 $ 5,025 $ 4,000 $ 3,052 $ 3,000
Ratio of expenses to average
net assets:
With reimbursement (Note 6) 0.95%(10) 0.95% 0.00%(9) 1.50%(10) 0.01%(9)
-------- --------- ----------- --------------- ----------
-------- --------- ----------- --------------- ----------
Without reimbursement 2.85%(10) 2.63% -- 4.66%(10) --
-------- --------- ----------- --------------- ----------
-------- --------- ----------- --------------- ----------
Ratio of net investment income
to average net assets:
With reimbursement (Note 6) (0.04)%(10) 0.10% 0.00%(9) (0.85)%(10) 0.01%(9)
-------- --------- ----------- --------------- ----------
-------- --------- ----------- --------------- ----------
Without reimbursement (1.94)%(10) (1.58)% -- (4.02)%(10) --
-------- --------- ----------- --------------- ----------
-------- --------- ----------- --------------- ----------
Portfolio turnover 48.15% 119.87% 0.00% 57.27% 0.00%
-------- --------- ----------- --------------- ----------
-------- --------- ----------- --------------- ----------
Average commission rate paid
per share (7) $ 0.0547 $ 0.0469 $ 0.0326 $0.0472 $ --
-------- --------- ----------- --------------- ----------
-------- --------- ----------- --------------- ----------
<CAPTION>
Dresdner RCM Global Funds
Financial Highlights
For a share outstanding throug
EMERGING MARKETS FUND INTERNATIONAL FUND
----------------------------- --------------------------------------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED ENDED
JUNE 30, 1998 1997(4) JUNE 30, 1998 1997 1996(8) 1995 1994(5)
--------------- ----------- --------------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE: (1)
Net asset value, beginning
of period $ 9.99 $ 10.00 $ 13.70 $ 12.72 $ 11.56 $ 10.00 $ 10.00
--------------- ----------- --------------- -------- -------- -------- -----------
Net investment income (loss) 0.10 -- 0.08 0.06 0.04 0.12 0.00
Net realized and unrealized
gain (loss) on investments (0.92) (0.01) 2.00 2.22 2.16 1.68 (0.00)
--------------- ----------- --------------- -------- -------- -------- -----------
Net increase (decrease) in
net asset value resulting
from investment operations (0.82) (0.01) 2.08 2.28 2.20 1.80 0.00
--------------- ----------- --------------- -------- -------- -------- -----------
Distributions:
Net investment income -- -- 0.00 (0.14) (0.16) (0.11) (0.00)
Net realized gain on
investments -- -- 0.00 (1.16) (0.88) (0.13) (0.00)
--------------- ----------- --------------- -------- -------- -------- -----------
Total distributions -- -- 0.00 (1.30) (1.04) (0.24) (0.00)
--------------- ----------- --------------- -------- -------- -------- -----------
NET ASSET VALUE, END OF PERIOD $ 9.17 $ 9.99 $ 15.78 $ 13.70 $ 12.72 $ 11.56 $ 10.00
--------------- ----------- --------------- -------- -------- -------- -----------
--------------- ----------- --------------- -------- -------- -------- -----------
TOTAL RETURN (6) (8.21)% 0.00% 15.18% 17.93% 19.31% 17.98% 0.01%
--------------- ----------- --------------- -------- -------- -------- -----------
--------------- ----------- --------------- -------- -------- -------- -----------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in
000's) $ 2,757 $ 2,996 $127,215 $ 98,443 $ 52,605 $ 34,347 $ 25,004
Ratio of expenses to average
net assets:
With reimbursement (Note 6) 1.50%(10) 0.01%(9) 1.00%(10) 1.00% 0.99% 0.75% 0.00%(9)
--------------- ----------- --------------- -------- -------- -------- -----------
--------------- ----------- --------------- -------- -------- -------- -----------
Without reimbursement 8.16%(10) -- 1.04%(10) 1.06% 1.25% 1.11% --
--------------- ----------- --------------- -------- -------- -------- -----------
--------------- ----------- --------------- -------- -------- -------- -----------
Ratio of net investment income
to average net assets:
With reimbursement (Note 6) 1.87%(10) 0.00%(9) 1.03%(10) 0.41% 0.32% 1.19% 0.01%(9)
--------------- ----------- --------------- -------- -------- -------- -----------
--------------- ----------- --------------- -------- -------- -------- -----------
Without reimbursement (4.80)%(10) -- 1.00%(10) 0.35% 0.06% 0.83% --
--------------- ----------- --------------- -------- -------- -------- -----------
--------------- ----------- --------------- -------- -------- -------- -----------
Portfolio turnover 114.8% 0.00% 34.84% 122.43% 119.10% 87.40% 0.00%
--------------- ----------- --------------- -------- -------- -------- -----------
--------------- ----------- --------------- -------- -------- -------- -----------
Average commission rate paid
per share (7) $0.0022 $ 0.0079 $ 0.0132 $ 0.0235 $ 0.0179 $ -- $ --
--------------- ----------- --------------- -------- -------- -------- -----------
--------------- ----------- --------------- -------- -------- -------- -----------
</TABLE>
- -----------------------------------------
(1) Calculated using the average share method.
(2) Commencement of operation was December 27, 1995.
(3) Commencement of operation was December 31, 1996.
(4) Commencement of operation was December 30, 1997.
(5) Commencement of operation was December 28, 1994.
(6) Total return measures the change in value of an investment over the period
indicated.
(7) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for security trades
on which commissions are charged.
This amount may vary from period to period and fund to fund depending on the
mix of trades executed in various markets where trading practices and commission
rate structures may differ.
(8) Stock split 10:1 at the close of business on June 17, 1996. All prior
period per share amounts were restated to reflect the stock split.
(9) Not annualized. Fund was in operations for less than five days.
(10) Annualized.
The accompanying notes are an integral part of the financial statements.
Page 49
<PAGE>
Dresdner RCM Global Funds
Notes to Financial Statements
June 30, 1998
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
Dresdner RCM Equity Funds, Inc. ("Equity Company"), previously RCM
Equity Funds, Inc., and Dresdner RCM Capital Funds, Inc. ("Capital Company"),
previously RCM Capital Funds, Inc. are organized as Maryland corporations and
are registered under the Investment Company Act of 1940, as amended, as open-end
management investment companies. These two corporations are collectively
referred to as the "Companies." The Equity Company consists of six series.
Dresdner RCM Global Technology Fund ("Global Technology Fund"), Dresdner RCM
Global Health Care Fund ("Global Health Care Fund"), and Dresdner RCM
Biotechnology Fund ("Biotechnology Fund") are non-diversified, no-load series of
the Equity Company. Dresdner RCM Global Small Cap Fund ("Global Small Cap
Fund"), Dresdner RCM Large Cap Growth Fund ("Large Cap Growth Fund"), and
Dresdner RCM Emerging Markets Fund ("Emerging Markets Fund") are diversified,
no-load series of the Equity Company. The Dresdner RCM International Growth
Equity Fund A ("International Fund") is a non-diversified, no-load series of the
Capital Company. These seven series are collectively referred to as the "Funds."
The following is a summary of significant accounting policies
consistently followed by the Funds in the preparation of their financial
statements. The policies are in conformity with generally accepted accounting
principles which require management to make estimates and assumptions that
affect the reported amount of assets and liabilities. Actual results may differ
from these estimates.
A. SECURITIES VALUATIONS:
Investment securities are stated at fair market value. Equity securities
traded on stock exchanges are valued at the last sale price on the exchange or
in the principal over-the-counter market in which such securities are traded as
of the close of business on the day the securities are being valued. If there
has been no sale on such day, then the security will be valued at the closing
bid price on such day. If no bid price is quoted on such day, then the security
will be valued by such method as a duly constituted committee of the Board of
Directors of the Companies shall determine in good faith to reflect its fair
market value. Readily marketable securities traded only in the over-the-counter
market that are not listed on NASDAQ or similar foreign reporting service will
be valued at the mean bid price, or using such other comparable sources as the
Board of Directors of the Companies in good faith deems appropriate to reflect
their fair market value. Other portfolio securities held by the Funds will be
valued at current market value, if current market quotations are readily
available for such securities. To the extent that market quotations are not
readily available, such securities will be valued by whatever means a duly
constituted committee of the Board of Directors of the Companies in good faith
deems appropriate to reflect their fair market value. Short-term investments
with a maturity of 60 days or less are valued at amortized cost, which
approximates market value.
B. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME:
Security transactions are recorded as of the date of purchase or sale.
Realized gains and losses on security transactions are determined on the
identified cost basis for both financial statement and federal income tax
purposes. Interest income, foreign taxes, and expenses are accrued daily.
Dividends are recorded on the ex-dividend date.
Page 50
<PAGE>
Dresdner RCM Global Funds
Notes to Financial Statements
June 30, 1998
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. FOREIGN CURRENCY TRANSACTIONS:
The records of the Funds are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars at current exchange rates. Purchases and sales of foreign
securities and income and withholding taxes are translated on the respective
dates of such transactions. Net realized currency gains and losses include
foreign currency gains and losses between trade date and settlement date and
foreign currency transactions. The Funds do not isolate that portion of foreign
currency exchange fluctuation on investments from unrealized appreciation and
depreciation which arises from changes in market prices. Such fluctuations are
included with the net unrealized appreciation or depreciation on investments.
D. FORWARD FOREIGN CURRENCY CONTRACTS:
A forward foreign currency contract ("Forward") is an agreement between
two parties to buy and sell a currency at a set price on a future date. The
International Fund may enter into Forwards in order to hedge foreign currency
risk associated with its portfolio securities or for other risk management or
investment purposes. The market value of the Forward fluctuates with changes in
currency exchange rates. The Forward is marked-to-market daily and the change in
market value is recorded by the International Fund as an unrealized appreciation
or depreciation. When the Forward is closed, the International Fund records a
realized gain or loss equal to the difference between the value at the time the
Forward was opened and the value at the time it was closed. The International
Fund could be exposed to risk of loss if the counterparty is unable to meet the
terms of the contract or if the value of the currency changes unfavorably.
E. OPTION ACCOUNTING PRINCIPLES:
The Funds may purchase or write put and call options on stocks and stock
indices as a hedge against changes in market conditions that may result in
changes in the value of the Funds' portfolio securities. When a Fund writes a
call or put option, an amount equal to the premium received is included in the
Fund's "Statement of Assets and Liabilities" as an asset and an equivalent
liability. The amount of the liability is subsequently marked-to-market to
reflect the current market value of the option. The current market value of an
option listed on a traded exchange is valued at its last sale price. If there
has been no sale on such day, then the security will be valued at the closing
bid price on such day. If an option expires on its stipulated expiration date or
if the Fund enters into a closing purchase transaction, a gain or loss is
realized without regard to any unrealized gain or loss on the underlying
security, and the liability related to such option is extinguished. If a written
call option is exercised, a gain or loss is realized from the sale of the
underlying security and the proceeds of the sale are increased by the premium
originally received. If a written put option is exercised, the cost of the
underlying security purchased would be decreased by the premium originally
received.
The premium paid by a Fund for the purchase of a call or put option is
included in the Fund's "Statement of Assets and Liabilities" as an investment
and subsequently "marked-to-market" to reflect the current market value of the
option. If an option which the Fund has purchased expires on the stipulated
expiration date, the Fund realizes a loss in the amount of the cost of the
option. If the Fund enters into a closing sale transaction, the Fund realizes a
gain or loss, depending on whether proceeds from the closing sale transaction
are greater or less than the cost of the option. If the Fund exercises a call
option, the cost of the securities acquired by exercising the call is increased
by the premium paid to buy the call. If the Fund exercise a put option, it
realizes a gain or loss from the sale of the underlying security, and the
proceeds from such sale are decreased by the premium originally paid.
Page 51
<PAGE>
Dresdner RCM Global Funds
Notes to Financial Statements
June 30, 1998
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
F. FEDERAL INCOME TAXES:
It is the policy of the Funds to comply with the requirements for
qualification as a "regulated investment company" under the Internal Revenue
Code of 1986, as amended (the "Code"). It is also the intention of the Funds to
make distributions sufficient to avoid imposition of any excise tax under
Section 4982 of the Code. Therefore, no provision has been made for Federal or
excise taxes on income and capital gains.
G. DISTRIBUTIONS:
Distributions to shareholders are recorded by the Funds on the
ex-dividend date. Income and capital gain distributions are determined in
accordance with Federal income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to differing
treatments for losses as a result of wash sales, foreign currency transactions
and/or passive foreign investment companies.
2. INVESTMENT IN FOREIGN SECURITY AND CURRENCY
Investing in foreign equity securities and currency transactions
involves significant risks, some of which are not typically associated with
investments of domestic origin. The Funds' investments in foreign and/or
emerging markets will subject the Funds to the risk of foreign currency exchange
rate fluctuations, perceived credit risk and adverse economic and political
developments.
3. CAPITAL SHARES
At June 30, 1998, the Equity Company and Capital Company each authorized
1,000,000,000 shares of common stock at $0.0001 par value. There were 50,000,000
classified as shares of the Global Technology Fund; 50,000,000 classified as
shares of the Global Small Cap Fund; 50,000,000 classified as shares of the
Global Health Care Fund; 50,000,000 classified as shares of the Large Cap Growth
Fund; 50,000,000 classified as shares of the Biotechnology Fund; 50,000,000
classified as shares of the Emerging Markets Fund; and 700,000,000 shares remain
unclassified in the Equity Company. There were 100,000,000 classified as shares
of the International Fund and 500,000,000 shares remain unclassified in the
Capital Company.
Transactions in capital shares were as follows:
Page 52
<PAGE>
Dresdner RCM Global Funds
Notes to Financial Statements
June 30, 1998
(Unaudited)
3. CAPITAL SHARES (CONTINUED)
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1998 YEAR ENDED
GLOBAL TECHNOLOGY FUND (UNAUDITED) DECEMBER 31, 1997
----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
--------- ------------ --------- ------------
<S> <C> <C> <C> <C>
Shares sold 67,692 $ 1,050,192 149,385 $ 2,140,139
Shares issued in connection with reinvestment of
distributions -- -- 72,162 940,273
Shares repurchased (10,682) (161,127) (120,169) (1,539,011)
--------- ------------ --------- ------------
Net increase 57,010 $ 889,065 101,378 $ 1,541,401
--------- ------------ --------- ------------
--------- ------------ --------- ------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1998 YEAR ENDED
GLOBAL SMALL CAP FUND (UNAUDITED) DECEMBER 31, 1997
----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
--------- ------------ --------- ------------
<S> <C> <C> <C> <C>
Shares sold 30,086 $ 407,665 1,498 $ 20,100
Shares issued in connection with reinvestment of
distributions -- -- 196 2,119
Shares repurchased (2,289) (29,638) -- --
--------- ------------ --------- ------------
Net increase 27,797 $ 378,027 1,694 $ 22,219
--------- ------------ --------- ------------
--------- ------------ --------- ------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1998 YEAR ENDED
GLOBAL HEALTH CARE FUND (UNAUDITED) DECEMBER 31, 1997
----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
--------- ------------ --------- ------------
<S> <C> <C> <C> <C>
Shares sold 3,082 $ 39,449 751 $ 10,100
Shares issued in connection with reinvestment of
distributions -- -- 86 985
Shares repurchased (416) (4,590) -- --
--------- ------------ --------- ------------
Net increase 2,666 $ 34,859 837 $ 11,085
--------- ------------ --------- ------------
--------- ------------ --------- ------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1998 YEAR ENDED
LARGE CAP GROWTH FUND (UNAUDITED) DECEMBER 31, 1997
----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
--------- ------------ --------- ------------
<S> <C> <C> <C> <C>
Shares sold 1,324 $ 17,500 1,101 $ 15,100
Shares issued in connection with reinvestment of
distributions -- -- 59 713
Shares repurchased -- -- -- --
--------- ------------ --------- ------------
Net increase 1,324 $ 17,500 1,160 $ 15,813
--------- ------------ --------- ------------
--------- ------------ --------- ------------
</TABLE>
Page 53
<PAGE>
Dresdner RCM Global Funds
Notes to Financial Statements
June 30, 1998
(Unaudited)
3. CAPITAL SHARES (CONTINUED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1998 YEAR ENDED
BIOTECHNOLOGY FUND (UNAUDITED) DECEMBER 31, 1997
----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
--------- ------------ --------- ------------
<S> <C> <C> <C> <C>
Shares sold 3,991 $ 41,588 300,000 $ 3,000,000
Shares issued in connection with reinvestment of
distributions -- -- -- --
Shares repurchased -- -- -- --
--------- ------------ --------- ------------
Net increase 3,991 $ 41,588 300,000 $ 3,000,000
--------- ------------ --------- ------------
--------- ------------ --------- ------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1998 YEAR ENDED
EMERGING MARKETS FUND (UNAUDITED) DECEMBER 31, 1997
----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
--------- ------------ --------- ------------
<S> <C> <C> <C> <C>
Shares sold 546 $ 6,105 300,000 $ 3,000,000
Shares issued in connection with reinvestment of
distributions -- -- -- --
Shares repurchased -- -- -- --
--------- ------------ --------- ------------
Net increase 546 $ 6,105 300,000 $ 3,000,000
--------- ------------ --------- ------------
--------- ------------ --------- ------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1998 YEAR ENDED
INTERNATIONAL FUND (UNAUDITED) DECEMBER 31, 1997
----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
--------- ------------ --------- ------------
<S> <C> <C> <C> <C>
Shares sold 1,023,295 $ 14,760,100 2,586,189 $ 37,727,115
Shares issued in connection with reinvestment of
distributions -- -- 609,312 8,341,482
Shares repurchased (143,386) (2,119,314) (148,471) (2,263,964)
--------- ------------ --------- ------------
Net increase 879,909 $ 12,640,786 3,047,030 $ 43,804,633
--------- ------------ --------- ------------
--------- ------------ --------- ------------
</TABLE>
Page 54
<PAGE>
Dresdner RCM Global Funds
Notes to Financial Statements
June 30, 1998
(Unaudited)
4. PURCHASES AND SALES OF SECURITIES
The following summarizes purchases and sales, other than short-term
investments, by each Fund for the six months ended June 30, 1998:
PURCHASES AND SALES OF SECURITIES
<TABLE>
<CAPTION>
PURCHASES
------------------------------
U.S. GOVERNMENT OTHER ISSUES
---------------- ------------
<S> <C> <C>
Global Technology Fund -- $6,399,730
Global Small Cap Fund -- $4,822,562
Global Health Care Fund -- $3,769,683
Large Cap Growth Fund -- $2,726,230
Biotechnology Fund -- $4,320,132
Emerging Markets Fund -- $3,455,490
International Fund -- $60,230,250
</TABLE>
<TABLE>
<CAPTION>
SALES
------------------------------
U.S. GOVERNMENT OTHER ISSUES
---------------- ------------
<S> <C> <C>
Global Technology Fund -- $5,435,814
Global Small Cap Fund -- $4,437,297
Global Health Care Fund -- $3,585,699
Large Cap Growth Fund -- $2,636,504
Biotechnology Fund -- $1,281,209
Emerging Markets Fund -- $2,870,570
International Fund -- $39,132,863
</TABLE>
5. DEFERRED ORGANIZATIONAL COSTS
Costs incurred by the Funds in connection with its organization
aggregated $75,000 for the Global Technology Fund, $20,000 for Emerging Markets
Fund, and $10,000 each for the Global Small Cap Fund, Global Health Care Fund,
Large Cap Growth Fund, and Biotechnology Fund. These costs are being amortized
on a straight-line basis over a five-year period beginning at the commencement
of each Fund's operations. The International Fund did not have any
organizational costs.
6. TRANSACTIONS WITH RELATED PARTIES
Dresdner RCM Global Investors LLC ("Dresdner RCM"), previously RCM
Capital Management, L.L.C., manages the Funds' investments and provides various
administrative services, subject to the authority of the Board of Directors. The
Global Technology Fund and the Emerging Markets Fund each pay a monthly
investment manager fee to Dresdner RCM based on its average daily net assets, at
the annualized rate of 1.00%. The International Fund pays a monthly fee to
Dresdner RCM based on its average net assets, at the annualized rate of 0.75%.
Page 55
<PAGE>
Dresdner RCM Global Funds
Notes to Financial Statements
June 30, 1998
(Unaudited)
6. TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
The Global Health Care Fund, Global Small Cap Fund, and Biotechnology
Fund each pay a monthly fee to Dresdner RCM based on their average daily net
assets, at the following annualized rate:
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS FEE
- ------------------------------------------------------------------------------------------
<S> <C>
The first $500 million 1.00%
Above $500 million and below $1 billion 0.95%
Above $1 billion 0.90%
</TABLE>
The Large Cap Growth Fund also pays a monthly fee to Dresdner RCM based
on its average daily net assets, at the following annualized rate:
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS FEE
- ------------------------------------------------------------------------------------------
<S> <C>
The first $500 million 0.70%
Above $500 million and below $1 billion 0.65%
Above $1 billion 0.60%
</TABLE>
For the six months ended June 30, 1998, investment management fees
recorded were: $41,619 for the Global Technology Fund, $25,706 for the Global
Small Cap Fund, $25,089 for the Global Health Care Fund, and $19,630 for the
Large Cap Growth Fund, $15,540 for the Biotechnology Fund, $15,309 for the
Emerging Markets Fund, and $439,543 for the International Fund.
Dresdner RCM has voluntarily agreed, until at least December 31, 1998,
to pay the Funds on a quarterly basis the amount, if any, by which the ordinary
operating expenses of the Companies attributable to the Funds for the quarter
(except interest, taxes, and extraordinary expenses) exceed the annualized rate
of 1.75% for each of the Global Technology Fund and Global Small Cap Fund, 0.95%
for the Large Cap Growth Fund, 1.50% for each of the Global Health Care Fund,
Biotechnology Fund and Emerging Markets Fund, and 1.00% for the International
Fund, based on each Fund's average daily net assets. In subsequent years, the
Funds will reimburse Dresdner RCM for any such payments to the extent that the
Funds' operating expenses are otherwise below these expense caps. For the six
months ended June 30, 1998, Dresdner RCM reimbursed operating expenses totaling
$40,831 for the Global Technology Fund, $49,195 for the Global Small Cap Fund,
$49,993 for the Global Health Care Fund, $53,286 for the Large Cap Growth Fund,
$49,176 for the Biotechnology Fund, $102,092 for the Emerging Markets Fund, and
$20,570 for the International Fund.
On June 30, 1998, the Dresdner RCM Profit Sharing Plan, participation in
which is limited to employees of Dresdner RCM, owned 186,619 shares and 362,203
shares of the total 564,628 outstanding shares of the Global Technology Fund and
8,063,844 outstanding shares of the International Fund, respectively. Also on
June 30, 1998, certain Dresdner RCM employees individually owned 142,318 shares
of the Global Technology Fund. On June 30, 1998, clients of Dresdner Bank
AB/Investment Management/ Institutional Asset Management Division owned 400,000
shares of the total 429,491 outstanding shares of the Global Small Cap Fund,
400,000 shares of the total 403,503 outstanding shares of the Global Health Care
Fund, 400,000 shares of the total 402,485 outstanding shares of the Large Cap
Growth Fund, 300,000 shares of the total 303,991 outstanding shares of the
Biotechnology Fund, and 300,000 shares of the total 300,546 outstanding shares
of the Emerging Markets Fund. At June 30, 1998, four shareholders in the
International Fund each held more than 5% of the outstanding shares of the
International Fund. These shareholders, in aggregate, held approximately 70% of
the International Fund.
Page 56
<PAGE>
Dresdner RCM Global Funds
Notes to Financial Statements
June 30, 1998
(Unaudited)
7. DISTRIBUTOR
Funds Distributor, Inc. (the "Distributor") acts as distributor of
shares of the Funds. The Equity Company has adopted a distribution plan pursuant
to Rule 12b-1 under the 1940 Act with respect to the Global Small Cap Fund,
Global Health Care Fund, Large Cap Growth Fund, and Biotechnology Fund. Under
the distribution plan, which is a "reimbursement plan," the Global Small Cap
Fund, Global Health Care Fund, and Biotechnology Fund each pay the Distributor
an annual fee of up to 0.25% of each respective Fund's average daily net assets
and the Large Cap Growth Fund pays the Distributor an annual fee of up to 0.15%
of the Large Cap Growth Fund's average daily net assets, as reimbursement for
certain expenses actually incurred by the Distributor in connection with
distribution of shares of the Funds. For the period ended June 30, 1998, 12b-1
fees incurred were $6,409 for the Global Small Cap Fund, $6,274 for the Global
Health Care Fund, $4,209 for the Large Cap Growth Fund, and $3,884 for the
Biotechnology Fund.
8. DIRECTORS' FEES
Each Director who is not an interested person of the Equity Company
receives from the Equity Company an annual retainer of $1,000 (the retainer is
evenly prorated among each series of the Equity Company), plus $500 for each
Board meeting attended for each series, and $250 for each committee meeting
attended for each series.
Each Director who is not an interested person of the Capital Company
receives from the Capital Company an annual retainer of $9,000 (the retainer is
evenly prorated among each series of the Capital Company), plus $1,500 for each
Board meeting attended for each series, and $500 for each committee meeting
attended for each series.
Each Director who is not an interested person of the Companies may elect
to defer receipt of all or a portion of his or her fees for service as a
director in accordance with the terms of a Deferred Compensation Plan for
Non-Interested Directors ("Directors' Plan"). Under the Directors' Plan, an
eligible Director may elect to have his or her deferred fees deemed invested
either in 90-day U.S. Treasury bills or shares of the common stock of the
Capital Company or of the Equity Company, or a combination of these options, and
the amount of deferred fees payable to such director under the Directors' Plan
will be determined by reference to the return on such deemed investments.
Generally, the deferred fees (reflecting any earnings, gains or losses thereon)
become payable upon the director's retirement or disability.
Page 57
<PAGE>
INVESTMENT MANAGER
Dresdner RCM Global Investors LLC
Four Embarcadero Center
San Francisco, California 94111
TRANSFER AND REDEMPTION AGENT
State Street Bank and Trust Company
1776 Heritage Drive
North Quincy, Massachusetts 02171
DISTRIBUTOR
Funds Distributor, Inc.
60 State Street, Suite 1300
Boston, Massachusetts 02109
CUSTODIAN
State Street Bank and Trust Company
1776 Heritage Drive
North Quincy, Massachusetts 02171
(Dresdner RCM Emerging Markets Fund Only)
Brown Brothers Harriman & Company
40 Water Street
Boston, Massachusetts 02109
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
555 South Flower Street
Los Angeles, California 90071
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
One Post Office Square
Boston, Massachusetts 02109
Page 58
<PAGE>
This brochure is not authorized for distribution to prospective
investors unless preceded or accompanied by a Dresdner RCM Global Funds
prospectus, which contains complete information about the Funds, including
expenses. Investors should read the prospectus carefully before they invest
or send money, as it explains certain risks associated with investing in
these Funds, including investments in international and emerging markets.
These risks include social, economic and political instability, market
illiquidity, and currency volatility. There are also special risks associated
with investing in stocks of small companies, which tend to be more volatile
and less liquid than stocks of large companies. There are additional risks
associated with investing in Funds that lack industry diversification.
Portfolio holdings are subject to change and should not be considered
recommendation to purchase.
Distributor: Dresdner RCM Distributors, a division of Funds Distributor Inc.
