<PAGE>
<TABLE>
<C> <S>
Dresdner RCM
Equity Funds
December 31, 1997 Annual Report
</TABLE>
----------------------------------------------------------------------
Dresdner RCM Global Funds
----------------------------------------------------------------------
<PAGE>
Dresdner RCM Global Technology Fund
Management's Performance Review
The Dresdner RCM Global Technology Fund (the "Fund") earned a total
return of 16.37% for the six months ended December 31, 1997. That compares with
a return of 0.85% for the Lipper Science and Technology Fund Index -- an equally
weighted index of the 10 largest science and technology mutual funds in the U.S.
Over the same period the Standard & Poor's 500 Stock Index returned 10.58%.
As we suggested in our last report, the rally in equities broadened
during the second half of 1997 to include midcap stocks -- the bulk of Fund
holdings. Our belief that there were "reasonable valuations for most technology
stocks, and attractive valuations for many mid-and small cap stocks" proved
true.
In the middle of the third quarter, however, the foundation for the
rapid growth that Asia had experienced for years began to crumble. Many
countries in the region had believed they could finance projects with short-term
loans in dollars and pay them back with gains in local currency. Projects --
like construction of the world's tallest buildings in Malaysia -- became
ludicrous. Eventually, the assumptions proved horribly wrong; currencies in the
region began a rapid decline, and commerce in several countries slowed
dramatically. Fortunately, we had several experts in our international group
that alerted us to the seriousness of the situation. We were able to sell most
shares of component companies and multinational firms that we thought would be
particularly affected. This helped us minimize the Fund's losses in the fourth
quarter and outperform other funds in its class for the second half of 1997. The
Fund also benefited from strong gains by many of the midcap holdings in firms
with little or no exposure to Asia -- such as America Online, Ceridian, and
PeopleSoft.
During the period we increased some of the Fund's defensive holdings in
service companies with predictable revenue streams, including Computer Sciences
and Sunguard Data. We also added to services companies in Europe, purchasing
shares in Sema Group in the U.K. We continue to favor this group because of the
shortage of information technology professionals, whose project code and
industry experience make them more efficient than many internal resources.
As we enter 1998, our outlook for the technology group remains cautious,
since the full effect of Asia's weakness has not yet filtered through the
industry and its suppliers. We continue to believe, however, that technology is
a major driving force of global economies with compelling investment
opportunities. We are again accumulating shares of many companies the Fund owned
earlier in the year, since the prices of these quality stocks have declined 30%
to 50%. With valuations now at record lows in most groups, we do not see any
excess valuations -- except in the Internet area. Even in that sector, companies
are growing so fast that they will soon grow into their valuations.
Although their shares may fall further in coming months, the companies
the Fund is buying are cutting costs and refocusing on growth opportunities
outside of Asia. Because demand for the products of these companies is solid in
the U.S. and Europe, and could benefit from the start of an Asian recovery in
1999, we believe growth for such firms could accelerate in 1999 and 2000.
Page 1
<PAGE>
Dresdner RCM Global Technology Fund
Performance Summary
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Fund Lipper Science and 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
</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 61.29%(c)(d) for the Fund. The average annual
return from the Fund's inception was 26.84%(c)(d). The chart assumes a
hypothetical $10,000 initial investment in the Fund and reflects all Fund
expenses.
Average Annual Total Returns(c)
December 31, 1997
<TABLE>
<CAPTION>
Life of
1 Year Fund(d)
<S> <C>
27.08% 26.84%
</TABLE>
The data above represent 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 Index is a capitalization-weighted index of 500
stocks designed to measure performance of the broad domestic economy through
changes in the aggregate market value of 500 stocks representing all 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 2
<PAGE>
Dresdner RCM Global Technology Fund
Investments in Securities and Net Assets
December 31, 1997
<TABLE>
<CAPTION>
% of Market
Shares Country Equity Investments Net Assets Value
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
BIOTECH AND BIOPHARMACEUTICAL 1.9%
3,830 US Algos Pharmaceutical Corp. * $ 114,900
1,800 US Hyseq Inc. * 17,325
-----------
132,225
-----------
BUSINESS SERVICES 1.5%
4,700 US Healthcare Recoveries Inc. * 104,575
BUSINESS SOFTWARE 27.0%
1,480 IE CBT Group PLC (Sponsored ADR) * 121,545
1,370 US Citrix Systems Inc. * 104,120
2,130 US Computer Associates International Inc. 112,624
4,080 US I2 Technologies Inc. * 215,220
3,720 US Industri Matematik International Corp. * 109,740
8,200 US INTERLINQ Software Corp. * 38,950
2,200 US Manugistics Group Inc. * 98,175
690 US Microsoft Corp. * 89,183
3,300 US Network Associates Inc. * 174,488
5,220 US PeopleSoft Inc. * 203,580
1,670 US Siebel Systems Inc. * 69,827
2,770 US Vantive Corp. * 69,943
4,285 US Veritas Software Co. * 218,535
3,400 US Visio Corp. * 130,475
3,000 US Wind River Systems Inc. * 119,063
-----------
1,875,468
-----------
COMMERCIAL/SPECIALTY 0.6%
830 US Sundstrand Corp. 41,811
COMPONENTS 5.8%
3,166 US Analog Devices Inc. * 87,659
1,470 TW ASE Test Ltd. * 96,101
850 US Intel Corp. 59,713
4,400 US Maxim Integrated Products Inc. * 151,800
200 US Texas Instruments Inc. 9,000
-----------
404,273
-----------
COMPUTERS 0.4%
555 US Compaq Computer Corp. 31,323
CONSUMER SOFTWARE 0.8%
1,470 US Electronics Arts Inc. * 55,584
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 3
<PAGE>
Dresdner RCM Global Technology Fund
Investments in Securities and Net Assets
December 31, 1997
<TABLE>
<CAPTION>
% of Market
Shares Country Equity Investments Net Assets Value
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
DATA PROCESSING AND SERVICES 12.2%
1,600 US America Online Inc. * $ 142,700
2,550 US Cambridge Technology Partners Inc. * 106,144
3,000 US Ceridian Corp. * 137,438
800 US Computer Sciences Corp. * 66,800
4,900 GB ECsoft Group PLC (Sponsored ADR) * 88,200
4,000 NO Merkantildata ASA * 137,815
2,900 US National Data Corp. 104,763
1,000 US SunGard Data Systems Inc. * 31,000
300 FI TT Tieto OY 33,771
-----------
848,631
-----------
ELECTRONICS/NEW TECHNOLOGY 0.3%
400 JP Advantest Corp. * 22,766
ETHICAL PHARMACEUTICALS 2.7%
4,590 US SangStat Medical Corp. * 185,895
INFORMATION SERVICES 1.3%
3,700 GB SEMA Group PLC * 90,102
INTERNATIONAL TELECOMMUNICATIONS 2.7%
4,500 IE Saville Systems PLC (Sponsored ADR) * 186,750
INTERNET ENABLING SERVICES 0.7%
680 US Yahoo Inc. * 47,090
LOCAL AREA COMMUNICATIONS 5.0%
3,315 US Cisco Systems Inc. * 184,811
4,560 US Network Appliance Inc. * 161,880
-----------
346,691
-----------
LONG DISTANCE TELEPHONE 0.6%
1,510 US WorldCom Inc. 45,678
MEDICAL PRODUCTS AND TECHNOLOGY 1.8%
1,900 US Sofamor/Danek Group Inc. * 123,619
PERIPHERAL EQUIPMENT 2.1%
5,400 US E M C Corp. * 148,163
SPECIALTY COST CONTAINMENT 0.5%
700 US HBO & Co. 33,600
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 4
<PAGE>
Dresdner RCM Global Technology Fund
Investments in Securities and Net Assets
December 31, 1997
<TABLE>
<CAPTION>
% of Market
Shares Country Equity Investments Net Assets Value
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
TECHNICAL SOFTWARE 2.6%
9,400 US Peerless Systems Corp. * $ 121,025
1,600 US Synopsys Inc. * 57,200
-----------
178,225
-----------
WIDE AREA COMMUNICATIONS 10.1%
3,500 US Advanced Fibre Communication * 101,938
1,100 SE Ericsson LM Telephone Co. (Sponsored ADR) 41,044
630 US Lucent Technologies Inc. 50,321
3,500 CA Newbridge Networks Corp. * 122,060
1,695 FI Nokia Corp. (Sponsored ADR A) 118,650
3,000 US PairGain Technologies Inc. * 58,125
5,020 US Uniphase Corp. * 207,700
-----------
699,838
-----------
TOTAL EQUITY INVESTMENTS (COST $4,321,365) 80.6% 5,602,307
-----------
OPTIONS
27 US S&P 500 Index Put
March 1998 strike price 950 70,200
-----------
TOTAL OPTIONS (COST $135,756) 1.0% 70,200
-----------
TOTAL EQUITY INVESTMENTS AND OPTIONS (COST $4,457,121) 81.6% 5,672,507
-----------
SHORT-TERM INVESTMENTS
COMMERCIAL PAPER 12.9%
300,000 US Ford Motor Credit Corp., 5.95% maturing 01/05/98 299,802
600,000 US Ford Motor Credit Corp., 6.15% maturing 01/07/98 599,385
-----------
899,187
-----------
MONEY MARKET FUNDS 5.8%
199,594 US SSgA Money Market Fund 199,594
199,591 US SSgA U.S. Government Money Market Fund 199,591
-----------
399,185
-----------
TOTAL SHORT-TERM INVESTMENTS (COST $1,298,372) 18.7% 1,298,372
-----------
TOTAL INVESTMENTS (COST $5,755,493) ** 100.3% 6,970,879
OTHER ASSETS LESS LIABILITIES (0.3%) (20,545)
-----------
NET ASSETS 100.0% $ 6,950,334
-----------
-----------
</TABLE>
- --------------------------------
* Non-income producing security.
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
December 31, 1997
Tax Information:
** For Federal income tax purposes, cost is $5,792,092 and unrealized
appreciation (depreciation) of equity securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 1,409,653
Unrealized depreciation (230,866)
-------------
Net unrealized
appreciation $ 1,178,787
-------------
-------------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's investments in securities and net assets at December 31, 1997,
categorized by country:
<TABLE>
<CAPTION>
% of Net Assets
-----------------------------------------
Country Short-Term
Country Code Equities and Other Total
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
Canada CA 1.8% 1.8%
Finland FI 2.2% 2.2%
Ireland IE 4.4% 4.4%
Japan JP 0.3% 0.3%
Norway NO 2.0% 2.0%
Sweden SE 0.6% 0.6%
Taiwan TW 1.4% 1.4%
United Kingdom GB 2.6% 2.6%
United States US 66.3% 18.4% 84.7%
--- --- ----------
Total 81.6% 18.4% 100.0%
--- --- ----------
--- --- ----------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
The Fund's outstanding written options at December 31, 1997:
<S> <C> <C> <C> <C>
Number of
Contracts Expiration Date Strike Price Market Value
- ----------------------------------------------------------------------------------------------------
27 S&P 500 Index Put March 1998 875 $32,738
(Premium received $70,117)
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 6
<PAGE>
Dresdner RCM Global Small Cap Fund
Management's Discussion of Fund Performance
The value of an investment in the Dresdner RCM Global Small Cap Fund
(the "Fund") earned a total return of 6.79% over the six months ended December
31, 1997 and earned a total return of 25.48% for all of 1997 -- ranking it #1
among the 32 Global Small Cap Funds tracked by Lipper Analytical Services. This
performance far surpassed the Salomon less than $1.0 billion World benchmark
performance of 1.64% for the year. The Fund performed exceptionally well in the
third quarter of 1997, but declined in the fourth quarter as the Asian currency
crisis put downward pressure on stock prices around the world.
We are pleased the Fund performed so strongly despite last year's
challenges to the small cap marketplace. We are confident that our style and
approach to building our portfolio from the bottom up, with a strong focus on
growth companies, will continue to serve the portfolio well in the future.
During the second half of 1997, the world stock market looked for safe
havens in country, in currency and in the orientation toward very large
capitalization issues. Also, during the same time period, the respective small
cap universes in our two largest markets, the United States and the United
Kingdom both struggled in performance versus their large cap benchmarks. In the
U.S., the Russell 2000 benchmark returned 11.0% and surpassed the S&P 500's
return of 10.6% by only 40 basis points. In the U.K., the Hoare Govett Small Cap
Index returned 1.8% and underperformed the FTSE 100's return of 11.5% by 970
basis points. For the full year, the small cap indices of the world's largest
markets all underperformed their respective large cap indices. The MSCI large
cap indices for the U.S., U.K., Germany and France had total returns of 33.5%,
21.6%, 24.6%, and 12.0% respectively. The respective Salomon less than $1
billion indices for the same countries had total returns of only 22.8%, 8.7%,
8.7% and 9.7%, respectively.
Currently, our country weightings remain relatively balanced between the
U.S. and the rest of the world. Compared to six months ago, our U.S. exposure
remained fairly stable at approximately 51% at the end of the year -- still
below that of the Salomon benchmark weighting of 57.9%. Our other significant
regional exposures shifted over the past six months accordingly: Europe, from
approximately 24.3% to 34.2%; well above the year-end benchmark level of under
24%; and our Asian exposure declined from 13.3% to 1.5% of the portfolio, and
now stands well below our year-end benchmark weighting of over 13%.
Despite the challenges offered by the majority of our markets, we
benefited from the many opportunities discovered in selected, quality small cap
stocks during 1997. U.S. holdings such as International Telecommunication Data
Systems increased 119% since purchase, and SmarTalk Teleservices Inc. increased
107% since purchase, helping the U.S. portion of the portfolio to outperform the
Russell 2000.
Outside the U.S., stock selection was again a key factor in our
performance. In Germany, we had gains in excess of 250% in two holdings: Sixt,
the auto rental and lease company, and LHS Group, a software company,
specializing in customer billing and wireless telecommunications. Our industry
focus on software companies was a strong contributor to our returns for the
year. Since their purchases, Saville Systems in Ireland, offering billing
systems to the telecommunications industry, gained 44.7%; Nippon Systems
Development in Japan, specializing in software development for financial
institutions, returned 41.5%; and Dr. Salomon, the U.K.-based anti-virus
software company, returned 42.5%. Additionally, since their purchase, Gedeon
Richter, the Hungarian pharmaceutical company, returned 47.3%; and Tomra, the
Norwegian reverse vending machine manufacturer, returned over 46%. In Canada,
several holdings performed extremely well, with Leitch Technology up 61% over
the year, Open Text up 53%, and Ballard Power up 178% since its purchase in
1997.
Looking forward to 1998, the managers feel that small-cap growth stocks
are particularly well-positioned relative to the larger cap universe in most
markets around the world. Here are the reasons: First of all, relative earnings
growth decidedly favors small cap stocks. This is usually a very good indicator
of outperformance, as investors are willing to overlook the lower liquidity
level of small caps in order to capture superior profit growth. Second,
valuations are near historical lows relative to the large cap universe. In the
past, such valuation disparities have laid the groundwork for small cap stocks
to beat the broader market averages sharply. Finally, investor sentiment
Page 7
<PAGE>
Dresdner RCM Global Small Cap Fund
Management's Discussion of Fund Performance
toward small cap stocks has become overwhelmingly negative. In the past, such
sentiment has triggered a strong period of outperformance.
Overall, the world equity market environment continues to reflect a
favorable economic outlook: low inflation, healthy -- but not overheated -- GDP
growth; and no immediate reason to anticipate significant interest rate hikes by
the world's central banks. The turmoil in Asia, while creating difficulties for
the region, actually helps keep inflation low and interest rates relatively
stable. We fully anticipate that the Fund will deliver attractive return
opportunities over the coming year.
Page 8
<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
</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 Index.(a) The chart
represents a cumulative return of 25.48%(b)(c) for the Fund. The chart assumes a
hypothetical $10,000 initial investment in the Fund and reflects all Fund
expenses.
Total Returns(b)
December 31, 1997
<TABLE>
<CAPTION>
Life of
1 Year Fund(c)
<S> <C>
25.48% 25.48%
</TABLE>
The data above represent 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 9
<PAGE>
Dresdner RCM Global Small Cap Fund
Investments in Securities and Net Assets
December 31, 1997
<TABLE>
<CAPTION>
% of Market
Shares Country Equity Investments Net Assets Value
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
CONSUMER DURABLES SECTOR 5.3%
AUTOMOTIVE RELATED 1.4%
1,500 US Tower Automotive Inc. * $ 63,093
OTHER CONSUMER DURABLES 3.9%
1,600 NL Ahrend NV 50,275
5,400 GB Hozelock Group 28,299
1,950 FR Moulinex * 48,200
1,000 NL Samas Groep NV 46,566
-----------
173,340
-----------
CONSUMER NON-DURABLES SECTOR 12.7%
BEVERAGE AND TOBACCO 0.9%
475 FI Hartwall OY AB 39,253
FOOD AND FOOD PROCESSING 0.0%
40 JP Hokuto Corp. 892
GENERAL RETAIL 2.0%
67,000 BM Glorious Sun Enterprises 17,294
18 DE Hugo Boss 22,224
2,200 US Tefron Ltd * 50,600
-----------
90,118
-----------
HOUSEHOLD/RELATED NON-DURABLES 4.8%
7,000 US Carson Inc. * 46,813
3,000 US Ocular Sciences Inc * 78,750
1,500 US Rayovac Corp. * 28,875
2,000 US Scotts Company Class A * 60,500
-----------
214,938
-----------
LEISURE TIME PRODUCTS/SERVICES 5.0%
1,500 US Capstar Hotel Co. * 51,469
2,500 US Dave & Buster's Inc * 56,250
1,060 FR Grandoptical Photoservice 43,627
1,800 ES Sol Melia S.A. 72,040
-----------
223,386
-----------
CYCLICAL/CAPITAL GOODS SECTOR 12.9%
AEROSPACE AND DEFENSE 0.7%
1,500 GB Doncasters PLC * 31,688
BUILDING AND CONSTRUCTION 2.8%
3,500 US Comfort Systems USA Inc * 69,125
10,048 IE Green Property PLC 57,039
-----------
126,164
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 10
<PAGE>
Dresdner RCM Global Small Cap Fund
Investments in Securities and Net Assets
December 31, 1997
<TABLE>
<CAPTION>
% of Market
Shares Country Equity Investments Net Assets Value
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
INDUSTRIAL EQUIPMENT 5.4%
2,500 DE Agiv AG * $ 47,273
6,000 SE Munters AB * 51,800
4,247 GB Powerscreen Intl PLC 42,694
2,500 US Rofin-Sinar Technologies * 30,313
3,100 NO Tomra Systems ASA 69,382
-----------
241,462
-----------
TRANSPORTATION SERVICES 4.0%
492 DE Sixt AG 39,402
1,500 US Swift Transportation Co Inc. * 48,563
4,300 BG Virgin Express Holdings * 89,225
-----------
177,190
-----------
ENERGY SECTOR 6.0%
ENERGY 6.0%
1,100 CA Ballard Power Systems Inc. * 83,786
7,332 GB British-Borneo Petroleum 51,393
30,000 NO Ocean Rig ASA * 31,741
3,500 NO Seateam Technology ASA * 64,092
1,700 NO Smedvig ASA - A Shares 35,973
-----------
266,985
-----------
HEALTH CARE SECTOR 8.2%
DRUGS & HOSPITAL SUPPLIES 2.5%
640 HU Gedeon Richter Ltd 144A (GDR) (a) 73,760
2,200 SE Oxigene Inc. * 39,373
-----------
113,133
-----------
HEALTH CARE SERVICES 5.7%
2,000 US Atria Communities Inc. * 34,250
2,000 US Curative Health Services * 60,750
5,000 US Harborside Healthcare Corp. * 98,750
3,500 US Orthodontic Centers of America * 58,188
-----------
251,938
-----------
INTEREST-SENSITIVE SECTOR 1.5%
BANKING 1.0%
800 US Community First Bankshares Inc. 42,600
GENERAL FINANCE 0.5%
95,000 HK Aeon Credit Service 21,089
</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
December 31, 1997
<TABLE>
<CAPTION>
% of Market
Shares Country Equity Investments Net Assets Value
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
TECHNOLOGY SECTOR 21.9%
COMPUTERS AND OFFICE EQUIPMENT 1.2%
2,000 US CHS Electronics Inc. * $ 34,250
1,550 SE Maldata AB B Shs 19,438
-----------
53,688
-----------
ELECTRONICS AND NEW TECHNOLOGY 7.0%
500 TW ASE Test Ltd. * 32,688
1,500 US Computer Products Inc. * 33,937
3,000 US General Scanning * 51,750
1,200 US Hadco Corp. * 54,300
2,200 CA Leitch Technology LTV * 66,107
2,000 US Radisys Corp. * 74,500
-----------
313,282
-----------
TECHNOLOGY SERVICES 13.7%
1,400 US Citrix Systems Inc. * 106,400
1,600 GB Dr. Solomon's Group PLC (ADR) * 51,600
700 US Engineering Animation * 32,200
2,000 SE Industri-Matematik International * 59,000
4,000 US Intl Telecomm Data Systems * 128,000
1,000 JP Nippon Systems Development 20,612
2,000 CA Open Text Corp. * 26,750
2,200 IE Saville Systems Ireland-SP (ADR) * 91,300
1,800 US Veritas Software Co. * 91,800
-----------
607,662
-----------
TELEMEDIA/SERVICES SECTOR 25.3%
BUSINESS SERVICES 15.0%
125 FR Altran Technologies 38,232
3,000 US Cornell Corrections Inc. * 62,250
6,000 GB Delphi Group PLC 66,145
900 DE DIS Deutscher Industrie Svc AG * 37,541
1,800 US Healthcare Recoveries Inc. * 40,050
5,000 US Lason Inc. * 133,125
4,600 GB Select Appointments 42,385
3,500 US The Registry Inc. * 160,563
2,200 NL Vedior 39,611
2,000 US Wilmar Industries * 47,750
-----------
667,652
-----------
COMMUNICATION SERVICES 7.5%
3,400 US LCC International Inc. * 49,300
800 US LHS Group Inc. * 47,800
3,000 US SmarTalk Teleservices Inc. * 68,250
3,000 US Snyder Communications * 109,500
</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
December 31, 1997
<TABLE>
<CAPTION>
% of Market
Shares Country Equity Investments Net Assets Value
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
COMMUNICATION SERVICES (Continued)
3,000 US Tel-Save Holdings Company * $ 59,625
-----------
334,475
-----------
MEDIA SERVICES 2.8%
5,000 BM Central European Media Entertainment Ltd. Class A * 126,250
-----------
TOTAL EQUITY INVESTMENTS (COST $3,754,137) 93.8% 4,180,278
-----------
SHORT-TERM INVESTMENTS
MONEY MARKET FUNDS
220,026 US SSgA Money Market Fund 220,026
36,368 US SSgA U.S. Government Money Market Fund 36,368
-----------
TOTAL SHORT-TERM INVESTMENTS (COST $256,394) 5.8% 256,394
-----------
TOTAL INVESTMENTS (COST $4,010,531) ** 99.6% 4,436,672
OTHER ASSETS LESS LIABILITIES 0.4% 18,910
-----------
NET ASSETS 100.0% $ 4,455,582
-----------
-----------
</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 $4,011,324 and unrealized
appreciation (depreciation) of equity securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 737,661
Unrealized depreciation (312,313)
-------------
Net unrealized
appreciation $ 425,348
-------------
-------------
</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
December 31, 1997
The Fund's investments in securities at December 31, 1997, categorized by
country:
<TABLE>
<CAPTION>
% of Net Assets
--------------------------------------------
Country Short-Term
Country Code Equities and Other Total
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
Belgium BG 2.0% 2.0%
Bermuda BM 3.2% 3.2%
Canada CA 4.0% 4.0%
Finland FI 0.9% 0.9%
France FR 2.9% 2.9%
Germany DE 3.3% 3.3%
Hong Kong HK 0.5% 0.5%
Hungary HU 1.7% 1.7%
Ireland IE 3.3% 3.3%
Japan JP 0.5% 0.5%
Netherlands NL 3.1% 3.1%
Norway NO 4.5% 4.5%
Spain ES 1.6% 1.6%
Sweden SE 3.8% 3.8%
Taiwan TW 0.7% 0.7%
United Kingdom GB 7.1% 7.1%
United States US 50.8% 6.1% 56.9%
--
--- ----------
Total 93.9% 6.1% 100.0%
--
--
--- ----------
--- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 14
<PAGE>
Dresdner RCM Global Health Care Fund
Management's Performance Review
In the 12 months ended December 31, 1997, the Dresdner RCM Global Health
Care Fund (the "Fund") earned a total return of 30.00%. That compares with
returns of 19.19% for the Russell Midcap Health Care Index, and 33.36% for the
Standard & Poor's 500 Stock Index. Strong returns from large cap pharmaceutical
and medical-device stocks accounted for most of the Fund's results.
The large pharmaceutical stocks outperformed due to strong financial
results, the introduction of exciting new products, and the increased visibility
of research and development pipelines. The sector also benefited from a
continued flow of cash into mutual funds investing in large cap growth stocks
with predictable earnings and, more recently, the prospect of further
consolidation in the pharmaceutical industry.
Although valuations for pharmaceutical stocks have returned to historic
highs, the sector's outlook is generally positive. New product development
pipelines are robust for most companies, and the industry is seeing strong
volume growth. In addition, managed care has embraced pharmaceuticals as
cost-effective therapy for patients, and the elderly continue to enroll in HMOs
to benefit from their generous drug benefits. Both trends bode well for
continued volume growth. Meanwhile, pharmaceutical stocks should remain safe
havens for investors digesting the ramifications of Asia's currency problems and
a potential slowdown in global growth.
As stocks of larger medical-device companies advanced, our knowledge and
expertise in medical products helped us select shares that further enhanced Fund
performance. We expect returns for the sector to be more modest in 1998, as
valuations have become rich. Also, the prospects for international growth have
diminished -- due to the strength of the dollar, reimbursement constraints, and
health care reform abroad.
Early-stage biotechnology companies also made positive contributions to
Fund performance. During the year, we increased the Fund's commitment to this
group, believing investors had ignored opportunities in many small companies.
The Fund also benefited from a focus on firms that have products in late-stage
development, or are about to achieve major development milestones. We believe
the long-term outlook for biotechnology remains bright as more products enter
the clinical stage and progress toward full development. Now that prices in the
sector have fallen from their highs, valuations are again becoming attractive.
Our cautious stance on health care services stocks proved justified in
1997, as the sector underperformed broader indices. During the year, health care
services firms faced many hurdles -- including government investigations of
fraud and abuse, continued cost pressures, and Medicare reimbursement
reductions. The 1997 budget bill contained substantial changes in Medicare
reimbursement that will impact company earnings for many years. While these
changes have yet to be fully understood by the market, we believe this area may
hold promising investment opportunities. As a result, we have selectively
increased the Fund's exposure to companies where Medicare reimbursement is
minimal or the reimbursement outlook is benign.
The Fund's manager remains optimistic about the prospects for health
care stocks in 1998. In fact, the rapid pace of innovation and the increasing
emphasis on high-quality, cost-effective medicine is creating a dynamic health
care marketplace that should provide rich investment opportunities for years to
come. New technologies and techniques continue to accelerate the discovery of
novel drug compounds -- which are beginning to fill the development pipelines of
pharmaceutical and biotechnology firms. We believe that, as valuations rise in
the drug sector, valuations of health care stocks should benefit overall. In the
health care services sector, changes in Medicare reimbursement should present
some very compelling opportunities in coming years. As before, we will continue
to favor firms with lower reimbursement risks.
Page 15
<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
</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 30.00%(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)
December 31, 1997
<TABLE>
<CAPTION>
Life of
1 Year Fund(d)
<S> <C>
30.00% 30.00%
</TABLE>
The data above represent 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 16
<PAGE>
Dresdner RCM Global Health Care Fund
Investments in Securities and Net Assets
December 31, 1997
<TABLE>
<CAPTION>
% of Market
Shares Country Equity Investments Net Assets Value
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
DRUGS AND HOSPITAL SERVICES 61.0%
3,400 US Algos Pharmaceutical Corp. * $ 102,000
3,800 US Alza Corp. * 120,887
5,200 US Anesta Corp. * 85,150
1,900 US Arrow International Inc. 70,300
1,200 US Boston Scientific Corp. * 55,050
4,600 US Centocor Inc. * 152,950
13,300 US CIMA Labs Inc. * 56,525
2,500 US Coulter Pharmaceuticals * 50,625
9,300 US Gensia Sicor Inc. * 54,056
3,100 GB Glaxo Wellcome PLC (Sponsored ADR) 148,413
3,400 US Eli Lilly & Co. 236,725
3,000 US NaPro BioTherapeutics Inc. * 7,500
1,500 US Novoste Corp. * 33,750
6,820 FI Orion-Yhtymae 180,348
4,500 US Penederm Inc. * 45,000
3,100 US Pfizer Inc. 231,144
7,300 US Physio-Control International Corp. * 113,606
4,000 US Respironics Inc. * 89,500
2,400 US Sangstat Medical Corp. * 97,200
2,200 US Sepracor Inc. * 88,137
5,000 GB Smithkline Beecham PLC (ADR) 257,187
3,600 US Sofamor/Danek Group Inc. * 234,225
2,600 US VISX Inc. * 57,525
1,200 US Warner Lambert Co. 148,800
1,250 GB Zeneca PLC (ADR) 135,000
-----------
2,851,603
-----------
HEALTH CARE SERVICES 33.2%
2,100 US Amerisource Health Corp. * 122,325
5,575 US Bergen Brunswig Corp. 234,847
1,000 US Cardinal Health Inc. 75,125
2,000 US Concentra Managed Care Inc. * 67,500
2,500 US CurativeHealth Services * 75,938
2,000 US Healthsouth Corp. * 55,500
10,100 US Phycor Inc. * 272,700
7,000 US Renex Corp. * 36,750
8,100 US Tenet Healthcare Corp. * 268,313
4,200 US Universal Health Services Inc. * 211,575
5,300 US Vencor Inc. * 129,519
-----------
1,550,092
-----------
INSURANCE SERVICES 1.1%
1,600 US Penn Treaty American Corp. * 50,800
-----------
TOTAL EQUITY INVESTMENTS (COST $3,864,439) 95.3% 4,452,495
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 17
<PAGE>
Dresdner RCM Global Health Care Fund
Investments in Securities and Net Assets
December 31, 1997
<TABLE>
<CAPTION>
% of Market
Shares Country Equity Investments Net Assets Value
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
SHORT-TERM INVESTMENTS
MONEY MARKET FUNDS
60 US SSgA Money Market Fund $ 60
158,929 US SSgA U.S. Government Money Market Fund 158,929
-----------
TOTAL SHORT-TERM INVESTMENTS (COST $158,989) 3.4% 158,989
-----------
TOTAL INVESTMENTS (COST $4,023,428) ** 98.7% 4,611,484
OTHER ASSETS LESS LIABILITIES 1.3% 59,452
-----------
NET ASSETS 100.0% $ 4,670,936
-----------
-----------
</TABLE>
- --------------------------------
* Non-income producing security.
Tax Information:
** For Federal income tax purposes, cost is $4,041,202 and unrealized
appreciation (depreciation) of equity securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 789,831
Unrealized depreciation (219,549)
-------------
Net unrealized
appreciation $ 570,282
-------------
-------------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's investments in securities at December 31, 1997, categorized by
country:
<TABLE>
<CAPTION>
% of Net Assets
------------------------------------------
Country Short-Term and
Country Code Equities Other Total
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
Finland FI 3.8% 3.8%
United Kingdom GB 11.6% 11.6%
United States US 79.9% 4.7% 84.6%
--
--- ----------
Total 95.3% 4.7% 100.0%
--
--
--- ----------
--- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 18
<PAGE>
Dresdner RCM Large Cap Growth Fund
Management's Performance Review
The Dresdner RCM Large Cap Growth Fund (the "Fund") earned a total
return of 31.99% over the 12 months ended December 31, 1997. The Fund finished
137 basis points behind its primary benchmark, the Standard & Poor's 500 Stock
Index, which returned 33.36%.
As we mentioned in our last letter, we'd been looking for an "event,"
such as a shortfall in 1998 earnings, that might trip up the long-lived bull
market. We certainly did not foresee a full-blown currency crisis in Asia, which
may mean disappointing earnings for many U.S. companies. Through the turn of the
year, at least, the U.S. market seems to have taken these developments in stride
- -- encouraged by lower levels of interest rates. In fact, the market defied
history in 1997 by recording an unprecedented third straight year of returns
above 20%.
Once again, large cap stocks outperformed both midcap and small cap
shares. Although value stocks overtook growth stocks late in the year, which
hurt the Fund's performance, industry weightings and stock selection helped it
far outpace its peers.
The Fund's performance in 1997 was helped substantially by its large
weighting in drug and hospital supply stocks versus the S&P 500 -- which added
190 basis points to the year's return. Several large pharmaceuticals
representing positions over 4% ended 1997 with huge price increases -- including
Pfizer (+79%), Eli Lilly (+90%), and Smithkline Beecham PLC (+51%). The Fund's
manager continues to believe this area offers excellent growth prospects. The
group currently represents approximately 25% of Fund assets, versus about 11% of
the S&P 500. Other portfolio decisions that helped the Fund's performance
included underweightings in energy, chemicals, raw materials, and utilities
shares -- which together added 204 basis points to the Fund's return. Within
these groups, the Fund had individual successes such as Schlumberger, which
returned 61% and was a large position throughout the year.
Our decision to overweight the Fund in the electronics/new technology
and business services groups cost it 134 basis points, and its underweighting of
the banking and computer groups cost it 83 basis points. In retrospect, we were
too optimistic about the growth rates of networking companies such as 3Com,
Ascend, Newbridge Networks, and U.S. Robotics. When the Asian currency crisis
slowed the growth of these firms, their stocks faltered badly. Certain
investments in the technology group were quite successful -- such as Compaq
Computer, which gained 89%. We expect better results from this group by the end
of 1998.
The prospect of slower growth has begun to dampen the earnings outlooks
for many companies. We remain confident, however, that the earnings and price
performances of the Fund's holdings will outpace those for stocks in the S&P
500.
Page 19
<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
</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 Stock
Index.(a) The chart represents a cumulative return of 31.99%(b)(c) for the Fund.
The chart assumes a hypothetical $10,000 initial investment in the Fund and
reflects all Fund expenses.
Total Returns(b)
December 31, 1997
<TABLE>
<CAPTION>
Life of
1 Year Fund(c)
<S> <C>
31.99% 31.99%
</TABLE>
The data above represent 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 designed to measure performance of the broad domestic economy
through changes in the aggregate market value of 500 stocks representing all
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 20
<PAGE>
Dresdner RCM Large Cap Growth Fund
Investments in Securities and Net Assets
December 31, 1997
<TABLE>
<CAPTION>
% of Market
Shares Country Equity Investments Net Assets Value
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
CONSUMER NON-DURABLES SECTOR 18.1%
BEVERAGE AND TOBACCO 3.7%
1,400 US Coca-Cola Co. $ 93,275
700 US PepsiCo Inc. 25,506
1,500 US Philip Morris Co. Inc. 67,969
-----------
186,750
-----------
FOOD AND FOOD PROCESSING 0.6%
300 US Pioneer Hi Bred International Inc. 32,175
GENERAL RETAIL 3.8%
800 US Bed Bath & Beyond Inc. * 30,800
1,200 US Consolidated Stores Corp. * 52,725
500 US CVS Corp. 32,031
500 US Home Depot 29,437
1,100 US Liz Claiborne Inc. 45,994
-----------
190,987
-----------
HOUSEHOLD/RELATED NON-DURABLES 6.9%
1,500 US Colgate-Palmolive Co. 110,250
1,200 US Gillette Co. 120,525
1,200 US Procter & Gamble Co. 95,775
600 US Revlon Inc. * 21,187
-----------
347,737
-----------
LEISURE TIME PRODUCTS/SERVICES 3.1%
5,300 US Host Marriott Corp. * 104,013
1,200 US Promus Hotel Corp. * 50,400
-----------
154,413
-----------
CYCLICAL/CAPITAL GOODS SECTOR 6.5%
AEROSPACE AND DEFENSE 0.8%
800 US Sundstrand Corp. 40,300
ELECTRICAL EQUIPMENT 2.8%
1,900 US General Electric Co. 139,413
INDUSTRIAL EQUIPMENT 2.9%
3,200 US Tyco International Ltd. 144,200
ENERGY SECTOR 3.8%
ENERGY 3.8%
600 GB British Petroleum Co. PLC (ADR) 47,812
500 US Camco International Inc. 31,844
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 21
<PAGE>
Dresdner RCM Large Cap Growth Fund
Investments in Securities and Net Assets
December 31, 1997
<TABLE>
<CAPTION>
% of Market
Shares Country Equity Investments Net Assets Value
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
ENERGY (Continued)
600 US Chevron Corp. $ 46,200
800 NL Schlumberger Ltd. 64,400
-----------
190,256
-----------
HEALTH CARE SECTOR 30.0%
DRUGS & HOSPITAL SERVICES 25.2%
1,000 US Alza Corp. * 31,812
1,700 US Centocor Inc. * 56,525
2,100 US Guidant Corp. 130,725
4,000 US Eli Lilly & Co. 278,500
1,800 US Medtronic Inc. 94,163
3,200 US Pfizer Inc. 238,600
1,000 US Sangstat Medical Corp. * 40,500
4,400 GB Smithkline Beecham PLC (ADR) 226,325
900 US Sofamor/Danek Group Inc. * 58,556
900 US Warner-Lambert Co. 111,600
-----------
1,267,306
-----------
HEALTH CARE SERVICES 4.8%
1,400 US Bergen Brunswig Corp. 58,975
600 US Cardinal Health Inc. 45,075
1,200 US HBO & Co. 57,600
1,100 US Phycor Inc. * 29,700
1,500 US Tenet Healthcare Corp. * 49,688
-----------
241,038
-----------
INTEREST-SENSITIVE SECTOR 11.4%
BANKING 2.3%
900 US Bank New York Inc. 52,032
300 US Citicorp 37,931
250 US U.S. Bancorp 27,984
-----------
117,947
-----------
GENERAL FINANCE 6.9%
2,400 US AMRESCO Inc. * 71,100
2,300 US Federal Home Loan Mortgage Corp. 96,456
1,600 US Golden State Bancorp * 59,800
350 US Household Int'l Inc. 44,647
1,200 US Washington Mutual Savings Bank 76,575
-----------
348,578
-----------
INSURANCE 2.2%
1,000 US American International Group Inc. 108,750
</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
December 31, 1997
<TABLE>
<CAPTION>
% of Market
Shares Country Equity Investments Net Assets Value
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
TECHNOLOGY SECTOR 16.6%
COMPUTERS AND OFFICE EQUIPMENT 3.3%
500 US Compaq Computer Corp. $ 28,219
300 US Dell Computer Corp. * 25,200
1,600 US E M C Corp. * 43,900
400 US International Business Machine Corp. 41,825
600 US Sun Microsystems Inc. * 23,925
-----------
163,069
-----------
ELECTRONICS AND NEW TECHNOLOGY 6.6%
1,800 US Cisco Systems Inc. * 100,350
700 SE Ericsson LM Telephone Co. (ADR) 26,119
700 US Intel Corp. 49,175
350 US Lucent Technologies 27,956
1,600 CA Newbridge Networks Corp. * 55,800
1,000 FI Nokia Corp. (Sponsored ADR A) 70,000
-----------
329,400
-----------
TECHNOLOGY SERVICES 6.7%
700 US America Online Inc. * 62,431
1,250 US Computer Associates International Inc. 66,094
350 US Computer Sciences Corp. * 29,225
1,000 US Electronics Arts Inc. * 37,813
800 US Microsoft Corp. * 103,400
1,000 US PeopleSoft Inc. * 39,000
-----------
337,963
-----------
TELEMEDIA/SERVICES SECTOR 9.7%
COMMUNICATION SERVICES 9.1%
500 US Intermedia Communications Inc. * 30,375
700 US MCI Communications Corp. 29,969
2,200 US Nextel Communications Inc. * 57,200
1,400 US SBC Communications Inc. 102,550
900 US Teleport Communications Group * 49,387
6,200 US WorldCom Inc. 187,550
-----------
457,031
-----------
MEDIA SERVICES 0.6%
1,100 CBS Corp. 32,381
-----------
TOTAL EQUITY INVESTMENTS (COST $3,938,853) 96.1% 4,829,694
-----------
</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
December 31, 1997
<TABLE>
<CAPTION>
% of Market
Shares Country Equity Investments Net Assets Value
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
SHORT-TERM INVESTMENTS
MONEY MARKET FUNDS 4.2%
211,847 US SSgA U.S. Government Money Market Fund $ 211,847
-----------
TOTAL SHORT-TERM INVESTMENTS (COST $211,847) 4.2% 211,847
-----------
TOTAL INVESTMENTS (COST $4,150,700) ** 100.3% 5,041,541
OTHER ASSETS LESS LIABILITIES (0.3%) (16,307)
-----------
NET ASSETS 100.0% $ 5,025,234
-----------
-----------
</TABLE>
- --------------------------------
* Non-income producing security.
Tax Information:
** For Federal income tax purposes, cost is $4,134,028 and unrealized
appreciation (depreciation) of equity securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 950,950
Unrealized depreciation (43,437)
-------------
Net unrealized
appreciation $ 907,513
-------------
-------------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's investments in securities at December 31, 1997, categorized by
country:
<TABLE>
<CAPTION>
% of Net Assets
--------------------------------------------
Country Short-Term
Country Code Equities and Other Total
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Canada CA 1.1% 1.1%
Finland FI 1.4% 1.4%
Netherlands NL 1.3% 1.3%
Sweden SE 0.5% 0.5%
United Kingdom GB 5.5% 5.5%
United States US 86.3% 3.9% 90.2%
--
--- ----------
Total 96.1% 3.9% 100.0%
--
--
--- ----------
--- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 24
<PAGE>
Dresdner RCM Biotechnology Fund
Investments in Securities and Net Assets
December 31, 1997
<TABLE>
<CAPTION>
Principal/ % of Market
Shares Country Short-Term Investments Net Assets Value
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
U.S. GOVERNMENT AGENCY 90.9%
2,730,000 US Federal National Mortgage Association 5.58% maturing
1/6/98 $ 2,727,884
-----------
MONEY MARKET FUNDS 9.0%
135,000 US SSgA U.S. Money Market Fund 135,000
135,000 US SSgA U.S. Government Money Market Fund 135,000
-----------
TOTAL SHORT-TERM INVESTMENTS (COST $2,997,884) 99.9% 2,997,884
-----------
TOTAL INVESTMENTS (COST $2,997,884) ** 99.9% 2,997,884
OTHER ASSETS LESS LIABILITIES 0.1% 2,352
-----------
NET ASSETS 100.0% $ 3,000,236
-----------
-----------
</TABLE>
- --------------------------------
** At December 31, 1997, the aggregate cost of investments for book and
federal income tax was the same.
The accompanying notes are an integral part of the financial statements.
Page 25
<PAGE>
Dresdner RCM Emerging Market Fund
Investments in Securities and Net Assets
December 31, 1997
<TABLE>
<CAPTION>
% of Market
Shares Country Equity Investments Net Assets Value
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
CONSUMER NONDURABLES SECTOR 13.86%
BEVERAGE/TOBACCO 9.87%
1,000 MX Coca Cola Femsa (ADR) $ 58,000
3,000 CH Compania Cervecerias Unidas SA (ADR) 88,125
11,300 MX Fomento Economico Mexicano S.A. de C.V - B 90,406
2,400 SA South African Breweries Inc. 59,180
-----------
295,711
-----------
RETAIL TRADE 3.99%
24,000 MX CIFRA S.A.de C.V. - Series V 59,241
69,000 SA Metro Cash & Carry Ltd. 60,259
-----------
119,500
-----------
CYCLICALS/CAPITAL GOODS SECTOR 6.32%
BUILDING/CONSTRUCTION 3.22%
22,000 HK Cheung Kong Infrastructure 62,464
600 MX Consorcio ARA S.A.* 2,917
13,000 MX Consorcio Hogar S.A. - Series B * 30,960
-----------
96,341
-----------
ELECTRICAL EQUIPMENT 1.97%
20,000 HK VTech Holdings Ltd. 58,979
RAW/BASIC MATERIALS 1.13%
5,000 MX Alfa S.A. 33,925
ENERGY SECTOR 6.94%
ENERGY 6.94%
2,500 RU Gazprom (ADR 144A) 60,313
600 RU Lukoil Holding (Sponsored ADR) 55,350
2,700 AR YPF Sociedad Anonima (Sponsored ADR) 92,304
-----------
207,967
-----------
HEALTH CARE SECTOR 7.12%
DRUGS & HOSPITAL SUPPLIES 7.12%
800 HU Gedeon Richter Ltd. (GDR 144A) 93,700
3,300 CR Pliva D.D. (GDR) 58,080
1,300 IS Teva Pharmaceutical Industries Ltd. (Sponsored ADR) 61,506
-----------
213,286
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 26
<PAGE>
Dresdner RCM Emerging Market Fund
Investments in Securities and Net Assets
December 31, 1997
<TABLE>
<CAPTION>
% of Market
Shares Country Equity Investments Net Assets Value
- ------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
INTEREST SENSITIVE SECTOR 20.01%
BANKING 7.01%
20,000 MX Grupo Financiero Banamex Accival, S.A. de C.V. - B * $ 59,911
4,400 PT Banco Comercial Portugues 90,082
1,800 CR Zagrebacka Banka D.D. (GDR) * 60,075
-----------
210,068
-----------
INSURANCE 6.13%
3,600 SA Liberty Life Assoc. of Africa Ltd. 92,469
5,000 PT Companhia de Seguros Mundial Confianca S.A.* 91,107
-----------
183,576
-----------
UTILITIES 6.87%
120,000 BR Cia Saneamento Basico de Sao Paolo 28,493
2,400 PT Electricidade De Portugal SP* 93,000
3,000 KR Korea Electric Power Corp. (Sponsored ADR) 30,188
130,000 BR Light-Servicos de Electricidad S.A. 54,162
-----------
205,843
-----------
TELEMEDIA/ SERVICES SECTOR 8.50%
COMMUNICATIONS SERVICES 8.50%
1,500 VE Cia Anonima Telefonos de Venezuela (ADR) 62,438
800 BR Telecomunicacoes Brasileiras S.A. (Sponsored ADR) 93,150
140,000 BR Telecomunicacoes de Sao Paulo S.A. Pref. 37,255
1,100 MX Telefonos de Mexico S.A. de C.V. (ADR L) 61,669
-----------
254,512
-----------
TECHNOLOGY SECTOR 5.58%
ELECTRONICS/NEW TECHNOLOGY 5.58%
700 TW ASE Test Ltd. * 45,763
4,800 TW Siliconware Precision Industries Co. (Sponsored GDR)
* 61,536
3,300 TW Taiwan Semiconductor Manufacturing Co. Ltd.
(Sponsored ADR) * 60,019
-----------
167,318
-----------
TOTAL EQUITY INVESTMENTS (COST $2,050,936) ** 68.33% 2,047,026
OTHER ASSETS LESS LIABILITIES 31.67% 948,728
-----------
NET ASSETS 100.00% $ 2,995,754
-----------
-----------
</TABLE>
- --------------------------------
* Non-income producing security.
** At December 31, 1997, the aggregate cost of investments for book and
federal income tax purposes was the same.
The accompanying notes are an integral part of the financial statements.
Page 27
<PAGE>
Dresdner RCM Emerging Market Fund
Investments in Securities and Net Assets
December 31, 1997
The Fund's investments in securities at December 31, 1997 categorized by
country:
<TABLE>
<CAPTION>
% of Net Assets
------------------------------------------
Country Short-Term
Country Code Equities and Other Total
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
Argentina AR 3.1% 0.0% 3.1%
Brazil BR 7.1% 0.0% 7.1%
Chile CH 2.9% 0.0% 2.9%
Croatia CR 3.9% 0.0% 3.9%
Hong Kong HK 4.1% 0.0% 4.1%
Hungary HU 3.1% 0.0% 3.1%
Israel IS 2.1% 0.0% 2.1%
Korea KR 1.0% 0.0% 1.0%
Mexico MX 13.2% 0.0% 13.2%
Portugal PT 9.1% 0.0% 9.1%
Russia RU 3.9% 0.0% 3.9%
South Africa SA 7.1% 0.0% 7.1%
Taiwan TW 5.6% 0.0% 5.6%
Venezuela VE 2.1% 0.0% 2.1%
United States US 0.0% 31.7% 31.7%
--- --- ----------
Total 68.3% 31.7% 100.0%
--- --- ----------
--- --- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 28
<PAGE>
Dresdner RCM Equity Funds, Inc.
Statements of Assets and Liabilities
December 31, 1997
<TABLE>
<CAPTION>
Dresdner RCM
----------------------------------------------------------------------------
Global Global Global Bio- Emerging
Technology Small Cap Health Care Large Cap technology Markets
Fund Fund Fund Growth Fund Fund Fund
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments at cost $4,457,121 $ 3,754,137 $3,864,439 $ 3,938,853 $ -- $ 2,050,936
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Foreign currency at cost $ 338 $ 14,245 $ 50,374 $ -- $ -- $ --
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Short-term investments at cost $1,298,372 $ 256,394 $ 158,989 $ 211,847 $2,997,884 $ --
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Investments at value (Note 1) $5,672,507 4,180,278 4,452,495 4,829,694 -- 2,047,026
Foreign currency at value (Note 1) 337 13,431 49,960 -- -- --
Cash -- -- 423 -- 2,539 3,000,000
Short-term investments at value (Note 1) 1,298,372 256,394 158,989 211,847 2,997,884 --
Receivables:
Investments sold -- 373,561 65,219 14,460 -- 6,587
Fund shares sold 68,100 -- -- -- -- --
Dividends and dividend reclaims 1,168 1,302 1,125 3,391 20 --
Interest 1,060 732 149 1,061 40 333
Investment Manager (Note 1) -- 978 2,540 9,404 -- --
Organizational costs (Note 6) 45,000 8,000 8,000 8,000 10,000 20,000
----------- ----------- ----------- ----------- ----------- -----------
Total Assets 7,086,544 4,834,676 4,738,900 5,077,857 3,010,483 5,073,946
----------- ----------- ----------- ----------- ----------- -----------
Liabilities:
Payables:
Investments purchased -- 324,959 15,528 -- -- 2,057,946
Options (premium received $70,117) (Note 1) 32,738 -- -- -- -- --
Management fees (Note 7) 32,767 -- -- -- 165 164
Registration and filing fees 16,483 971 645 919 -- --
Audit fees 16,428 16,168 16,167 16,167 -- --
Directors' fees and expenses (Note 9) 12,250 7,065 7,067 7,067 -- --
Legal fees 9,425 11,843 11,843 11,843 -- --
Accounting fees 3,750 3,750 3,750 3,750 -- --
Custodian fees 2,457 1,729 546 490 -- --
Transfer agent fees 1,714 3,012 3,080 3,047 -- --
Insurance expense 1,561 668 668 668 -- --
Printing expense 1,486 -- -- -- -- --
Organizational costs (Note 6) -- 7,532 7,532 7,532 10,000 20,000
Miscellaneous expenses 5,151 1,397 1,138 1,140 82 82
----------- ----------- ----------- ----------- ----------- -----------
Total Liabilities 136,210 379,094 67,964 52,623 10,247 2,078,192
----------- ----------- ----------- ----------- ----------- -----------
Net Assets $6,950,334 $ 4,455,582 $4,670,936 $ 5,025,234 $3,000,236 $ 2,995,754
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Net assets consist of:
Paid-in capital (Note 4) $5,789,230 $ 4,022,219 $4,011,085 $ 4,015,813 $3,000,000 $ 3,000,000
Accumulated net investment income (loss) -- -- -- 3,472 236 87
Accumulated net realized gain (loss) on
investment and foreign currency transactions (91,660) 8,059 72,209 115,108 -- (372)
Net unrealized depreciation on foreign
currency transactions -- (837) (414) -- -- (51)
Net unrealized appreciation (depreciation) on
investments and options 1,252,764 426,141 588,056 890,841 -- (3,910)
----------- ----------- ----------- ----------- ----------- -----------
Net Assets $6,950,334 $ 4,455,582 $4,670,936 $ 5,025,234 $3,000,236 $ 2,995,754
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Shares outstanding 507,618 401,694 400,837 401,160 300,000 300,000
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Net asset value per share $ 13.69 $ 11.09 $ 11.65 $ 12.53 $ 10.00 $ 9.99
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 29
<PAGE>
Dresdner RCM Equity Funds, Inc.
Statements of Operations
For the Year Ended December 31, 1997
<TABLE>
<CAPTION>
Dresdner RCM
------------------------------------------------------------------------------
Global Global Global Large Cap Bio- Emerging
Technology Small Cap Health Care Growth technology Markets
Fund Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Income:
Dividends $ 20,421 $ 24,017 $ 33,290 $ 43,124 $ 20 $ --
Interest 17,397 5,384 11,179 7,261 463 333
Foreign tax withheld (1,226) (2,049) (657) (791) -- --
----------- ----------- ----------- ----------- ----- -----------
Total income 36,592 27,352 43,812 49,594 483 333
----------- ----------- ----------- ----------- ----- -----------
Expenses:
Investment management fees
(Note 7) 61,204 45,183 46,238 33,041 165 164
Transfer agent expense 22,473 19,122 19,538 19,502 -- --
Audit fees 17,496 16,501 16,500 16,501 -- --
Directors' fees and expenses
(Note 9) 17,250 18,695 18,697 18,697 -- --
Amortization of organizational
costs (Note 6) 15,000 2,000 2,000 2,000 -- --
Registration and filing fees 9,011 6,880 6,896 6,897 -- --
Custodian fees 4,208 9,431 3,877 5,780 -- --
Legal fees -- 15,000 15,000 15,000 -- --
Miscellaneous expense 3,612 6,913 6,655 6,653 82 82
----------- ----------- ----------- ----------- ----- -----------
Total expenses before
reimbursements 150,254 139,725 135,401 124,071 247 246
Expenses reimbursed by
investment manager (Note 7) (43,147) (60,657) (65,965) (79,231) -- --
----------- ----------- ----------- ----------- ----- -----------
Total net expenses 107,107 79,068 69,436 44,840 247 246
----------- ----------- ----------- ----------- ----- -----------
Net investment income
(loss) (70,515) (51,716) (25,624) 4,754 236 87
----------- ----------- ----------- ----------- ----- -----------
Net Realized and Unrealized Gain
(Loss):
Net realized gain (loss) on
investments 808,369 712,365 630,581 376,249 -- (372)
Net realized loss on foreign
currency transactions (16,217) (82,464) (3,757) (1,707) -- --
----------- ----------- ----------- ----------- ----- -----------
Net realized gain (loss) 792,152 629,901 626,824 374,542 -- (372)
----------- ----------- ----------- ----------- ----- -----------
Net change in unrealized
appreciation (depreciation) on
foreign currency transactions 6 (837) (414) -- -- (51)
Net change in unrealized
appreciation (depreciation) on
investments 517,543 426,141 588,056 890,841 -- (3,910)
----------- ----------- ----------- ----------- ----- -----------
Net unrealized appreciation
(depreciation) 517,549 425,304 587,642 890,841 -- (3,961)
----------- ----------- ----------- ----------- ----- -----------
Net realized and unrealized
gain (loss) during the
year 1,309,701 1,055,205 1,214,466 1,265,383 -- (4,333)
----------- ----------- ----------- ----------- ----- -----------
Net Increase (Decrease) in Net
Assets Resulting from Operations $1,239,186 $ 1,003,489 $1,188,842 $ 1,270,137 $ 236 $ (4,246)
----------- ----------- ----------- ----------- ----- -----------
----------- ----------- ----------- ----------- ----- -----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 30
<PAGE>
<TABLE>
<CAPTION>
Dresdner RCM Equity Funds, Inc.
Statements of Changes in Net Assets
Dresdner RCM
--------------------------------------------------------------------------------------------
Global Technology Global Health Care
Fund Global Small Cap Fund Fund Large Cap Growth Fund
-------------------- ---------------------- ---------------------- ----------------------
Dec. 31, Dec. 31, Dec. 31,
Year Year Year 1996* Year 1996* Year 1996*
ended ended ended to ended to ended to
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1997 1996 1997 1996 1997 1996
--------- --------- --------- ----------- --------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) $ (70,515) $ (41,219) $ (51,716) $ -- $ (25,624) $ -- $ 4,754 $ --
Net realized gain (loss) on
investments and foreign
currency transactions 792,152 203,942 629,901 -- 626,824 -- 374,542 --
Net change in unrealized
appreciation (depreciation) on
investments and foreign
currency transactions 517,549 731,362 425,304 -- 587,642 -- 890,841 --
--------- --------- --------- ----------- --------- ----------- --------- -----------
Net increase (decrease) in net
assets resulting from
operations 1,239,186 894,085 1,003,489 -- 1,188,842 -- 1,270,137 --
Distributions to Shareholders
from:
Net investment income (Note 1
and 2) -- -- -- -- -- -- (4,011) --
Net realized gain on investments
(Notes 1 and 2) (947,092) (36,142) (570,126) -- (528,991) -- (256,705) --
Net increase from capital share
transactions (Note 4) 1,541,401 3,305,192 22,219 4,000,000 11,085 4,000,000 15,813 4,000,000
--------- --------- --------- ----------- --------- ----------- --------- -----------
Total increase in net assets 1,833,495 4,163,135 455,582 4,000,000 670,936 4,000,000 1,025,234 4,000,000
Net Assets:
Beginning of year 5,116,839 953,704 4,000,000 -- 4,000,000 -- 4,000,000 --
--------- --------- --------- ----------- --------- ----------- --------- -----------
End of year $6,950,334 $5,116,839 $4,455,582 $4,000,000 $4,670,936 $4,000,000 $5,025,234 $4,000,000
--------- --------- --------- ----------- --------- ----------- --------- -----------
--------- --------- --------- ----------- --------- ----------- --------- -----------
End of period net assets include
accumulated net investment
income (loss) of: -- -- -- -- -- -- 3,472 --
--------- --------- --------- ----------- --------- ----------- --------- -----------
--------- --------- --------- ----------- --------- ----------- --------- -----------
<CAPTION>
Dresdner RCM Equity Funds, Inc.
Statements of Changes in Net Asset
Emerging
Biotechnology Markets
Fund Fund
----------- -----------
Dec. 30, Dec. 30,
1997* 1997*
to to
Dec. 31, Dec. 31,
1997 1997
----------- -----------
<S> <C> <C>
Operations:
Net investment income (loss) $ 236 $ 87
Net realized gain (loss) on
investments and foreign
currency transactions -- (372)
Net change in unrealized
appreciation (depreciation) on
investments and foreign
currency transactions -- (3,961)
----------- -----------
Net increase (decrease) in net
assets resulting from
operations 236 (4,246)
Distributions to Shareholders
from:
Net investment income (Note 1
and 2) -- --
Net realized gain on investments
(Notes 1 and 2) -- --
Net increase from capital share
transactions (Note 4) 3,000,000 3,000,000
----------- -----------
Total increase in net assets 3,000,236 2,995,754
Net Assets:
Beginning of year -- --
----------- -----------
End of year $3,000,236 $2,995,754
----------- -----------
----------- -----------
End of period net assets include
accumulated net investment
income (loss) of: 236 87
----------- -----------
----------- -----------
</TABLE>
- ------------------------------------
* Commencement of investment operations.
The accompanying notes are an integral part of the financial statements.
Page 31
<PAGE>
<TABLE>
<CAPTION>
Dresdner RCM Equity Funds, Inc.
Financial Highlights
For a share outstanding throughout each fiscal year or period ended
December 31
Dresdner RCM
-----------------------------------------------
Global Small
Global Technology Fund Cap Fund
------------------------- ----------------
1997 1996 1995(2) 1997 1996(3)
------- ------- ----- ------- -------
<S> <C> <C> <C> <C> <C>
Per Share Operating
Performance: (1)
Net asset value,
beginning of
period $ 12.60 $ 10.04 $10.00 $ 10.00 $ 10.00
------- ------- ----- ------- -------
Net investment
income (loss) (0.16) (0.15) -- (0.13) --
Net realized and
unrealized gain
(loss) on
investments 3.46 2.80 0.04 2.64 --
------- ------- ----- ------- -------
Net increase
(decrease) in net
asset value
resulting from
investment
operations 3.30 2.65 0.04 2.51 --
------- ------- ----- ------- -------
Distributions:
Net investment
income -- -- -- -- --
Net realized
gain on
investments (2.21) (0.09) -- (1.42) --
------- ------- ----- ------- -------
Total
distributions (2.21) (0.09) -- (1.42) --
------- ------- ----- ------- -------
Net asset value, end
of period $ 13.69 $ 12.60 $10.04 $ 11.09 $ 10.00
------- ------- ----- ------- -------
------- ------- ----- ------- -------
Total Return (5) 27.08% 26.41% 0.40% 25.48% 0.00%
------- ------- ----- ------- -------
------- ------- ----- ------- -------
Ratios and
supplemental data:
Net assets, end of
period (in 000's) $ 6,950 $ 5,117 $ 954 $ 4,456 $ 4,000
Ratio of expenses to
average net assets:
With reimbursement
(Note 7) 1.75% 1.73% 0.00%(7) 1.75% 0.00%(7)
------- ------- ----- ------- -------
------- ------- ----- ------- -------
Without
reimbursement 2.45% 7.75% -- 3.09% --
------- ------- ----- ------- -------
------- ------- ----- ------- -------
Ratio of net
investment income
(loss) to average
net assets:
With reimbursement
(Note 7) (1.15)% (1.34)% (0.02)%(7) (1.14)% 0.00%(7)
------- ------- ----- ------- -------
------- ------- ----- ------- -------
Without
reimbursement (1.86)% (7.36)% -- (2.49)% --
------- ------- ----- ------- -------
------- ------- ----- ------- -------
Portfolio turnover
rate 189.41% 155.58% 0.00% 153.49% 0.00%
------- ------- ----- ------- -------
------- ------- ----- ------- -------
Average commission
per share (6) $0.0678 $0.0599 $ -- $0.0202 $0.0465
------- ------- ----- ------- -------
------- ------- ----- ------- -------
<CAPTION>
Dresdner RCM Equit
Financial Highlights
For a share outstand
December 31
Biotech- Emerging
Global Health Large Cap nology Markets
Care Fund Growth Fund Fund Fund
---------------- ------------------ -------- --------
1997 1996(3) 1997 1996(3) 1997(4) 1997(4)
------- ------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating
Performance: (1)
Net asset value,
beginning of
period $ 10.00 $ 10.00 $ 10.00 $ 10.00 $10.00 $ 10.00
------- ------- ------- ------- -------- --------
Net investment
income (loss) (0.06) -- 0.01 -- -- --
Net realized and
unrealized gain
(loss) on
investments 3.03 -- 3.17 -- -- (0.01)
------- ------- ------- ------- -------- --------
Net increase
(decrease) in net
asset value
resulting from
investment
operations 2.97 -- 3.18 -- -- (0.01)
------- ------- ------- ------- -------- --------
Distributions:
Net investment
income -- -- (0.01) -- -- --
Net realized
gain on
investments (1.32) -- (0.64) -- -- --
------- ------- ------- ------- -------- --------
Total
distributions (1.32) -- (0.65) -- -- --
------- ------- ------- ------- -------- --------
Net asset value, end
of period $ 11.65 $ 10.00 $ 12.53 $ 10.00 $10.00 $ 9.99
------- ------- ------- ------- -------- --------
------- ------- ------- ------- -------- --------
Total Return (5) 30.00% 0.00% 31.99% 0.00% 0.00% 0.00%
------- ------- ------- ------- -------- --------
------- ------- ------- ------- -------- --------
Ratios and
supplemental data:
Net assets, end of
period (in 000's) $ 4,671 $ 4,000 $ 5,025 $ 4,000 $3,000 $ 2,996
Ratio of expenses to
average net assets:
With reimbursement
(Note 7) 1.50% 0.00%(7) 0.95% 0.00%(7) 0.01%(7) 0.01%(7)
------- ------- ------- ------- -------- --------
------- ------- ------- ------- -------- --------
Without
reimbursement 2.93% -- 2.63% -- -- --
------- ------- ------- ------- -------- --------
------- ------- ------- ------- -------- --------
Ratio of net
investment income
(loss) to average
net assets:
With reimbursement
(Note 7) (0.55)% 0.00%(7) 0.10% 0.00%(7) 0.01%(7) 0.00%(7)
------- ------- ------- ------- -------- --------
------- ------- ------- ------- -------- --------
Without
reimbursement (1.98)% -- (1.58)% -- -- --
------- ------- ------- ------- -------- --------
------- ------- ------- ------- -------- --------
Portfolio turnover
rate 157.65% 0.00% 119.87% 0.00% 0.00% 0.00%
------- ------- ------- ------- -------- --------
------- ------- ------- ------- -------- --------
Average commission
per share (6) $0.0528 $0.0324 $0.0469 $0.0326 $ -- $ 0.0079
------- ------- ------- ------- -------- --------
------- ------- ------- ------- -------- --------
</TABLE>
- ------------------------------------
(1) Calculated using the average share method.
(2) Period from December 27, 1995 (commencement of operation) to December 31,
1995.
(3) Period from December 31, 1996 (commencement of operation) to December 31,
1996.
(4) Period from December 30, 1997 (commencement of operation) to December 31,
1997.
(5) Total return measures the change in value of an investment over the period
indicated.
(6) 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.
(7) Not annualized. Fund was in operation for less than five days.
The accompanying notes are an integral part of the financial statements.
Page 32
<PAGE>
Dresdner RCM Equity Funds, Inc.
Notes to Financial Statements
December 31, 1997
1. SIGNIFICANT ACCOUNTING POLICIES
Dresdner RCM Equity Funds, Inc. (previously RCM Equity Funds, Inc.) (the
"Company") is organized as a Maryland corporation and is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company. The Company consists of six series: Dresdner RCM Global Technology Fund
("Global Technology Fund"), Dresdner RCM Global Health Care Fund ("Global Health
Care Fund"), Dresdner RCM Biotechnology Fund ("Biotechnology Fund") are
non-diversified, no-load series of the 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 are diversified, no-load
series of the Company. The Biotechnology Fund and Emerging Markets Funds
commenced operations on December 30, 1997. These six 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 Company 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 Company 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 Company 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, except certain dividends from
foreign securities where the ex-dividend date may have passed, are recorded as
soon as the Funds are informed of the ex-dividend date. Non-cash dividends
included in dividend income, if any, are recorded at the fair market value of
the security received.
Page 33
<PAGE>
Dresdner RCM Equity Funds, Inc.
Notes to Financial Statements
December 31, 1997
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. FOREIGN CURRENCY TRANSACTIONS:
The books and records of the Funds are maintained in U.S. dollars. The
value of investments, assets and liabilities denominated in currencies other
than U.S. dollars are translated into U.S. dollars based upon current foreign
exchange rates. Purchases and sales of foreign investments and income and
expenses are converted into U.S. dollars based on currency exchange rates
prevailing on the respective dates of such transactions. Net realized and
unrealized gain (loss) on foreign currency transactions represent: (1) foreign
exchange gains and losses from the sale and holdings of foreign currencies; (2)
gains and losses between trade date and settlement date on investment securities
transactions and forward foreign currency contracts; and (3) gains and losses
from the difference between amounts of interest and dividends recorded and the
amounts actually received.
In addition, the Funds do not isolate that portion of the results of
operations resulting from changes in exchange rates from the fluctuations
resulting from changes in market prices of securities held. Such fluctuations
are included with the net realized and unrealized gain or loss on investments.
D. 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 exercises 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.
E. 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.
Page 34
<PAGE>
Dresdner RCM Equity Funds, Inc.
Notes to Financial Statements
December 31, 1997
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. 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. DISTRIBUTIONS
On December 17, 1997, distributions were paid from investment operations
for the Global Technology Fund, Global Small Cap Fund, Global Health Care Fund
and Large Cap Growth Fund as indicated below. The dividends were recorded on
December 17, 1997, to shareholders of record on the beginning of the day on
December 17, 1997.
<TABLE>
<CAPTION>
Investment Short-term Long-term Total
Fund Income Capital Gain Capital Gain Distributions
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
Global Technology Fund
Per Share -- $ 2.00 $ 0.21 $ 2.21
Amount -- $ 857,097 $ 89,995 $ 947,092
Global Small Cap Fund
Per Share -- $ 1.42 -- $ 1.42
Amount -- $ 570,126 -- $ 570,126
Global Health Care Fund
Per Share -- $ 1.32 -- $ 1.32
Amount -- $ 528,991 -- $ 528,991
Large Cap Growth Fund
Per Share $ 0.01 $ 0.64 -- $ 0.65
Amount $ 4,011 $ 256,705 -- $ 260,716
</TABLE>
3. 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.
4. CAPITAL SHARES
At December 31, 1997, there were 1,000,000,000 shares of the Company's
common stock authorized, at $0.0001 par value. Of this amount, 50,000,000 were
classified as shares of the Global Technology Fund; 50,000,000 were classified
as shares of the Global Small Cap Fund; 50,000,000 were classified as shares of
the Global Health Care Fund; 50,000,000 were classified as shares of the Large
Cap Growth Fund; 50,000,000 were classified as shares of the Biotechnology Fund;
50,000,000 were classified as shares of the Emerging Markets Fund; and
700,000,000 shares remain unclassified.
Page 35
<PAGE>
Dresdner RCM Equity Funds, Inc.
Notes to Financial Statements
December 31, 1997
4. CAPITAL SHARES (Continued)
Transactions in capital shares were as follows:
Capital Share Transactions
<TABLE>
<CAPTION>
Year ended Year ended
Global Technology Fund December 31, 1997 December 31, 1996
---------------------- ----------------------
Shares Amount Shares Amount
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Shares sold 149,385 $ 2,140,139 314,233 $ 3,338,002
Shares issued in connection with reinvestment of
distributions 72,162 940,273 2,926 36,110
Shares repurchased (120,169) (1,539,011) (5,899) (68,920)
--------- ----------- --------- -----------
Net increase 101,378 $ 1,541,401 311,260 $ 3,305,192
--------- ----------- --------- -----------
--------- ----------- --------- -----------
<CAPTION>
December 31, 1996
Year ended to
Global Small Cap Fund December 31, 1997 December 31, 1996
---------------------- ----------------------
Shares Amount Shares Amount
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Shares sold 1,498 $ 20,100 400,000 $ 4,000,000
Shares issued in connection with reinvestment of
distributions 196 2,119 -- --
Shares repurchased -- -- -- --
--------- ----------- --------- -----------
Net increase 1,694 $ 22,219 400,000 $ 4,000,000
--------- ----------- --------- -----------
--------- ----------- --------- -----------
<CAPTION>
December 31, 1996
Year ended to
Global Health Care Fund December 31, 1997 December 31, 1996
---------------------- ----------------------
Shares Amount Shares Amount
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Shares sold 751 $ 10,100 400,000 $ 4,000,000
Shares issued in connection with reinvestment of
distributions 86 985 -- --
Shares repurchased -- -- -- --
--------- ----------- --------- -----------
Net increase 837 $ 11,085 400,000 $ 4,000,000
--------- ----------- --------- -----------
--------- ----------- --------- -----------
<CAPTION>
December 31, 1996
Year ended to
Large Cap Growth Fund December 31, 1997 December 31, 1996
---------------------- ----------------------
Shares Amount Shares Amount
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Shares sold 1,101 $ 15,100 400,000 $ 4,000,000
Shares issued in connection with reinvestment of
distributions 59 713 -- --
Shares repurchased -- -- -- --
--------- ----------- --------- -----------
Net increase 1,160 $ 15,813 400,000 $ 4,000,000
--------- ----------- --------- -----------
--------- ----------- --------- -----------
</TABLE>
Page 36
<PAGE>
Dresdner RCM Equity Funds, Inc.
Notes to Financial Statements
December 31, 1997
4. CAPITAL SHARES (Continued)
Capital transactions for the Global Small Cap Fund, Global Health Care
Fund and Large Cap Growth Fund for 1996 represent only one day of operations;
all three funds commenced operations on December 31, 1996. There were 300,000
shares sold for a total of $3,000,000 on December 30, 1997 (commencement of
operations) for each of the Biotechnology Fund and Emerging Markets Fund.
5. PURCHASES AND SALES OF SECURITIES
The following summarizes purchases and sales of investment securities
and short-term U.S. government securities by each Fund, for the year/period
ended December 31, 1997:
Purchases and Sales of Securities
<TABLE>
<CAPTION>
Purchases
------------------------------
U.S. Government Other Issues
---------------- ------------
<S> <C> <C>
Global Technology Fund -- $10,653,686
Global Small Cap Fund -- $7,226,908
Global Health Care Fund $2,795,919 $8,909,396
Large Cap Growth Fund -- $7,739,692
Biotechnology Fund $2,727,884 $ --
Emerging Markets Fund -- $2,057,896
</TABLE>
<TABLE>
<CAPTION>
Sales
------------------------------
U.S. Government Other Issues
---------------- ------------
<S> <C> <C>
Global Technology Fund -- $11,267,759
Global Small Cap Fund $3,998,761 $6,552,915
Global Health Care Fund $6,799,487 $6,501,745
Large Cap Growth Fund $3,999,077 $5,210,370
Biotechnology Fund -- $ --
Emerging Markets Fund -- $ 6,587
</TABLE>
6. DEFERRED ORGANIZATIONAL COSTS
Costs incurred by the Funds in connection with its organization
aggregated $75,000 for the Global Technology Fund, $20,000 for the Emerging
Markets Fund, and $10,000 for each of 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.
7. TRANSACTIONS WITH RELATED PARTIES
Dresdner RCM Global Investors LLC (previously RCM Capital Management,
L.L.C.) ("Dresdner RCM"), a wholly owned subsidiary of Dresdner Bank AG, manages
the Funds' investments and provides various administrative services, subject to
the authority of the Board of Directors. The Funds pay investment management
fees monthly at an annualized rate of 1.00% for the Global Technology Fund,
1.00% for the Global Small Cap Fund and 1.00% for the Global Health Care Fund,
0.70% for the Large Cap Growth Fund, 1.00% for the Biotechnology Fund, and 1.00%
for the Emerging Markets Fund based on each Fund's respective average daily net
assets. For the year ended December 31, 1997, investment management fees
recorded were: $61,204 for the Global Technology Fund, $45,183 for the Global
Small
Page 37
<PAGE>
Dresdner RCM Equity Funds, Inc.
Notes to Financial Statements
December 31, 1997
7. TRANSACTIONS WITH RELATED PARTIES (Continued)
Cap Fund, $46,238 for the Global Health Care Fund, and $33,041 for the Large Cap
Growth Fund. For the two-day period ended December 31, 1997, investment
management fees recorded were $165 for the Biotechnology Fund and $164 for the
Emerging Markets Fund.
Dresdner RCM has voluntarily agreed, until at least December 31, 1997,
to pay the Funds on a quarterly basis the amount, if any, by which the ordinary
operating expenses of the Company 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, and 1.50% for each of the Global Health Care
Fund, Biotechnology Fund and Emerging Markets Fund, based on each Fund's
respective 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 year ended
December 31, 1997, Dresdner RCM reimbursed operating expenses totaling $43,147
for the Global Technology Fund, $60,657 for the Global Small Cap Fund, $65,965
for the Global Health Care Fund, and $79,231 for the Large Cap Growth Fund.
On December 31, 1997, the Dresdner RCM Profit Sharing Plan,
participation in which is limited to employees of Dresdner RCM, and certain
Dresdner RCM employees individually owned 185,154 shares and 146,357 shares,
respectively, of the total 507,618 outstanding shares of the Technology Fund. On
December 31, 1997, clients of Dresdner Bank AG/Investment
Management/Institutional Asset Management Division owned 400,000 shares of the
total 401,694 outstanding shares of the Global Small Cap Fund, 400,000 shares of
the total 400,837 outstanding shares of the Global Health Care Fund, 400,000
shares of the total 401,160 outstanding shares of the Large Cap Growth Fund, and
all the outstanding shares of each of the Biotechnology Fund and Emerging
Markets Fund.
8. DISTRIBUTOR
Funds Distributor, Inc. (the "Distributor") acts as distributor of
shares of the Funds. The 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 year/ period ended December 31,
1997, the Funds did not incur any 12b-1 fees.
9. DIRECTORS' FEES
Each Director who is not an interested person of the Company receives
from the Company an annual retainer of $1,000 (the retainer is prorated evenly
among each series of the Company), plus $500 for each Board meeting attended for
each series and $250 for each audit committee meeting attended for each series.
Page 38
<PAGE>
Report of Independent Accountants
To the Board of Directors and Shareholders of Dresdner RCM Equity Funds, Inc.:
We have audited the accompanying statements of assets and liabilities of
Dresdner RCM Global Technology Fund, Dresdner RCM Global Small Cap Fund,
Dresdner RCM Global Health Care Fund, Dresdner RCM Large Cap Growth Fund,
Dresdner RCM Biotechnology Fund and Dresdner RCM Emerging Markets Fund, six
series of Dresdner RCM Equity Funds, Inc. (previously RCM Equity Funds, Inc.)
(the "Funds"), including the statements of investments in securities and net
assets, as of December 31, 1997, and the related statements of operations for
the periods then ended and the related statements of changes in net assets and
financial highlights for each of the periods indicated therein. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1997 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
positions of the aforementioned series of Dresdner RCM Equity Funds, Inc., as of
December 31, 1997, the results of their operations, changes in their net assets
and their financial highlights for each of the periods indicated therein, in
conformity with generally accepted accounting principles.
Coopers & Lybrand L.L.P.
Boston, Massachusetts
February 20, 1998
Page 39
<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
Coopers & Lybrand L.L.P.
One Post Office Square
Boston, Massachusetts 02109
Page 40
