<PAGE> PAGE 1
000 A000000 10/31/98
000 C000000 1023392
000 D000000 N
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000 J000000 A
001 A000000 NATIONAL INVESTORS CASH MANAGEMENT FUND, INC.
001 B000000 811-7871
001 C000000 2129087537
002 A000000 100 WALL STREET
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10005
003 000000 Y
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005 000000 N
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007 C020100 KENNEDY CABOT MONEY MARKET PORTFOLIO
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007 C020200 KENNEDY CABOT U.S. GOVERNMENT PORTFOLIO
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007 C010800 8
007 C010900 9
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008 A00AA01 WATERHOUSE ASSET MANAGEMENT, INC.
008 B00AA01 A
008 C00AA01 801-50261
008 D01AA01 NEW YORK
008 D02AA01 NY
008 D03AA01 10005
010 A00AA01 WATERHOUSE SECURITIES, INC.
010 B00AA01 84-23395
010 C01AA01 NEW YORK
010 C02AA01 NY
010 C03AA01 10005
010 A00AA02 FUNDS DISTRIBUTOR, INC.
010 B00AA02 8-20518
<PAGE> PAGE 2
010 C01AA02 BOSTON
010 C02AA02 MA
010 C03AA02 02109
011 A00AA01 FUNDS DISTRIBUTOR, INC.
011 B00AA01 8-20518
011 C01AA01 BOSTON
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012 A00AA01 WATERHOUSE SECURITIES, INC.
012 B00AA01 84-23395
012 C01AA01 NEW YORK
012 C02AA01 NY
012 C03AA01 10005
013 A00AA01 ERNST & YOUNG LLP
013 B01AA01 NEW YORK
013 B02AA01 NY
013 B03AA01 10019
015 A00AA01 THE BANK OF NEW YORK
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<PAGE> PAGE 7
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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SIGNATURE CHRISTOPHER J. KELLEY
TITLE V.P. AND SECRETARY
<PAGE>
This report is signed on behalf of National Investors Cash Management Fund, Inc.
City of Boston Commonwealth of Massachusetts December 29, 1998
National Investors Cash Management Fund, Inc.:
By: /s/ Christopher J. Kelley
----------------------------
Christopher J. Kelley
Vice President and Secretary
Witness: /s/ Karen Jacoppo-Wood
--------------------------------------
Karen Jacoppo-Wood
Vice President and Assistant Secretary
<PAGE>
Exhibit 77Q1(a)
NATIONAL INVESTORS CASH MANAGEMENT FUND, INC.
ARTICLES OF AMENDMENT
TO THE ARTICLES OF INCORPORATION
National Investors Cash Management Fund, Inc., a Maryland corporation
having its principal Maryland office c/o The Corporation Trust Incorporated, 300
East Lombard Street, Baltimore, Maryland 21202 (hereinafter called the
"Corporation"), hereby certifies to the State Department of Assessments and
Taxation of Maryland that:
FIRST: Article V(1) of the Corporation's charter is hereby amended in its
entirety to read as follows:
The total number of shares which the Corporation has authority to
issue is one hundred billion (100,000,000,000) shares of common stock
(par value $0.0001 per share), amounting in aggregate par value to ten
million dollars ($10,000,000.00). All of such shares of common stock
are classified into three separate series to be known as "Kennedy
Cabot Money Market Portfolio," "Kennedy Cabot U.S. Government
Portfolio" and "Kennedy Cabot Municipal Portfolio." Each such series
shall be divided as follows: the Kennedy Cabot Money Market Portfolio
shall consist of sixty billion (60,000,000,000) shares; the Kennedy
Cabot U.S. Government Portfolio shall consist of twenty billion
(20,000,000,000) shares; and the Municipal Portfolio shall consist of
twenty billion (20,000,000,000) shares. All of the shares of each such
series are classified as a single class.
SECOND: The foregoing amendments have been effected in the manner and by
the vote required by the Corporation's charter and the laws of the State of
Maryland. The amendments were approved by a majority of the Board of Directors
of the Corporation, and at the time of approval by the Board of Directors there
were no shares of stock of the Corporation entitled to vote on the matter either
outstanding or subscribed for.
THIRD: Except as amended hereby, the Corporation's charter shall remain in
full force and effect.
FOURTH: The authorized capital stock of the Corporation has not been
increased by these Articles of Amendment.
1
<PAGE>
The Vice President and Secretary acknowledges these Articles of Amendment
to be the corporate act of the Corporation and states that to the best of his
knowledge, information and belief, the matters set forth in these Articles of
Amendment with respect to the authorization and approval of the amendment of the
Corporation's charter are true in all material respects, and that this statement
is made under the penalties of perjury.
IN WITNESS WHEREOF, NATIONAL INVESTORS CASH MANAGEMENT FUND, INC. has
caused these Articles of Amendment to be signed in its name and on its behalf by
its Vice President and Secretary, a duly authorized officer of the Corporation,
and attested by its Assistant Secretary, effective the 12th day of March, 1998.
NATIONAL INVESTORS CASH MANAGEMENT FUND, INC.
/s/ Christopher J. Kelley
----------------------------
Christopher J. Kelley
Vice President and Secretary
ATTEST:
/s/ Karen Jacoppo-Wood
- ----------------------
Karen Jacoppo-Wood
Assistant Secretary
2
<PAGE>
Exhibit 77Q1(e)
INVESTMENT MANAGEMENT AGREEMENT
AGREEMENT made this 26th day of February, 1998, by and between NATIONAL
INVESTORS CASH MANAGEMENT FUND, INC., a Maryland corporation, whose address is
100 Wall Street, New York, New York 10005 (the "Company") and WATERHOUSE ASSET
MANAGEMENT, INC., a Delaware corporation, whose address is 100 Wall Street, New
York 10005 (the "Investment Manager").
W I T N E S S E T H:
WHEREAS, the Company is an open-end, diversified management investment
company, registered under the Investment Company Act of 1940, as amended (the
"1940 Act"), with distinct series of shares each having its own investment
objectives, policies and restrictions, including the Company's Kennedy Cabot
Money Market Portfolio, Kennedy Cabot U.S. Government Portfolio and Kennedy
Cabot Municipal Portfolio (each, a "Portfolio"), and including such other
Portfolios as may hereafter be offered by the Company, all as more fully
described in the Company's Registration Statement on Form N-1A under the 1940
Act and the Securities Act of 1933, as amended (the "Registration Statement"),
as filed with the Securities and Exchange Commission (the "Commission") relating
to the Company and shares of the Company's capital stock, and all amendments
thereto;
WHEREAS, the Investment Manager is registered as an investment adviser
under the Investment Advisers Act of 1940, as amended; and
WHEREAS, the Company and the Investment Manager desire to enter into an
agreement to provide for comprehensive management and investment advisory
services to each Portfolio upon the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, it is hereby agreed by and between the parties hereto as
follows:
1. Duties of Investment Manager. (a) The Company hereby employs the
Investment Manager to act as the investment adviser for each of the Portfolios
and to manage the investment and reinvestment of the assets of each Portfolio in
accordance with the investment objectives, policies and restrictions of each
such Portfolio as the same are set forth in the Registration Statement, and in
accordance with the requirements of the 1940 Act and all other applicable state
and federal laws, rules and regulations, subject to the supervision of the Board
of Directors of the Company for the period and upon the terms herein set forth.
The investment of funds shall also be subject to all applicable restrictions of
the Articles of Incorporation and By-laws of the Company as may from time to
time be in force. Without limiting the generality of the foregoing, the
Investment Manager shall:
(i) obtain and evaluate pertinent information about significant
developments and economic, statistical and financial data, domestic, foreign or
otherwise, whether affecting the
1
<PAGE>
economy generally or a Portfolio specifically, and whether concerning the
individual issuers whose securities are included in a Portfolio or the
activities in which such issuers engage, or with respect to securities which the
Investment Manager considers desirable for inclusion in a Portfolio;
(ii) determine which issuers and securities shall be represented in a
Portfolio and regularly report thereon to the Company's Board of Directors;
(iii) formulate and implement continuing programs for the purchases and
sales of securities of such issuers and lists of approved investments for each
Portfolio and regularly report thereon to the Company's Board of Directors;
(iv) make decisions with respect to and take, on behalf of each Portfolio,
all actions which appear necessary to carry into effect such purchase and sale
programs and supervisory functions aforesaid, including the placing of orders
for the purchase and sale of securities for such Portfolio.
(b) The Investment Manager accepts such employment and agrees during such
period to render such services and to assume the obligations herein set forth
for the compensation herein provided. The Investment Manager shall give each
Portfolio the benefit of its best judgment, efforts and facilities in rendering
its services as an investment manager. The Investment Manager shall for all
purposes herein provided be deemed to be an independent contractor and, unless
otherwise expressly provided or authorized, shall have no authority to act for
or represent the Company in any way or otherwise be deemed an agent of the
Company. It is understood and agreed that the Investment Manager, by separate
agreements with the Company, may also serve the Company in other capacities. It
is further agreed that the Investment Manager and its officers and directors are
not prohibited from engaging in any other business activity or from rendering
services to any other person, or from serving as partners, officers or directors
of any other firm or corporation, including other investment companies, so long
as its or their services hereunder are not impaired thereby. It is further
agreed that personnel of the Investment Manager may invest in securities for
their own account pursuant to a code of ethics that sets forth all employees'
fiduciary responsibilities regarding the Company, establishes procedures for
personal investing and restricts certain transactions.
(c) The Investment Manager shall keep any books and records relevant to the
provision of its investment advisory services to each Portfolio and shall
specifically maintain all books and records with respect to each Portfolio's
securities and portfolio transactions and shall render to the Company's Board of
Directors such periodic and special reports as the Board may reasonably request.
The Investment Manager agrees that all records which it maintains for the
Company are the property of the Company and it will surrender promptly to the
Company any such records upon the Company's request, provided however that the
Investment Manager may retain a copy of such records. The Investment Manager
further agrees to preserve for the periods prescribed by Rule 31a-2 under the
1940 Act any such records kept by the Investment Manager in connection with
investment advisory services provided pursuant hereto.
2
<PAGE>
(d) The Company has delivered to the Investment Manager copies of each of
the following documents and will deliver to it all future amendments and
supplements thereto, if any:
(i) The Registration Statement; and
(ii) The Prospectus(es) of the Company (such Prospectus(es) and the related
Statement(s) of Additional Information of the Company, as currently in
effect and as amended or supplemented from time to time, being herein
collectively called the "Prospectus").
(e) The Company shall at all times keep the Investment Manager fully
informed with regard to the securities owned by each Portfolio, its funds
available or to become available for investment, and generally as to the
condition of its affairs. The Company shall furnish the Investment Manager with
a copy of all financial statements and each report prepared by certified public
accountants with respect to it, and with such other information with regard to
its affairs as the Investment Manager may from time to time reasonably request.
(f) Any investment program undertaken by the Investment Manager pursuant to
this Agreement, as well as any other activities undertaken by the Investment
Manager on behalf of any Portfolio pursuant thereto, shall at all times be
subject to any directives of the Board of Directors.
2. Expenses. The Investment Manager shall pay all of its expenses arising
from the performance of its obligations under Section 1 of this Agreement and
shall pay any salaries, fees and expenses of Company directors or officers who
are employees, officers or directors of the Investment Manager.
The Investment Manager shall not be required to pay any other expenses of
the Company or the Portfolios, including (a) the fees and expenses of directors
who are not "interested persons" of the Company, as defined by the 1940 Act, and
travel and related expenses of the directors for attendance at meetings; (b) the
fees and expenses of the custodian and transfer agent of the Company or any
pricing service, including but not limited to fees and expenses relating to
Company accounting, pricing of portfolio shares, and computation of net asset
value; (c) the fees and expenses of calculating yield and/or performance of the
Portfolios; (d) the charges and expenses of legal counsel and independent
accountants; (e) taxes and corporate fees payable to governmental agencies; (f)
the costs of share certificates and of membership dues of any trade association
of which the Company is a member; (g) reimbursement of each Portfolio's share of
the organization expenses of the Company; (h) the fees and expenses involved in
registering and maintaining registration of the Company and the Portfolios'
shares with the Commission, blue sky service providers, registering the Company
as a broker or dealer, including the preparation and printing of the
registration statements and prospectuses for such purposes; (I) allocable
communications expenses with respect to investor services, expenses of
shareholders' and Board of Directors' meetings and preparing, printing and
mailing proxies, prospectuses and reports to
3
<PAGE>
shareholders; (j) costs of acquiring and disposing of portfolio securities,
including but not limited to brokers' commissions, dealers' mark-ups and any
issue or transfer taxes chargeable in connection with the Portfolios'
transactions; (k) the cost of stock certificates representing shares of the
Portfolios, if any; (l) insurance expenses, including, but not limited to, the
cost of a fidelity bond, directors and officers insurance and errors and
omissions insurance; and (m) litigation and indemnification expenses, expenses
incurred in connection with mergers, and other extraordinary expenses not
incurred in the ordinary course of the Portfolios' business.
3. Compensation. For the services described in Section 1 hereof, the
Company, on behalf of each Portfolio, will pay to the Investment Manager
promptly after the end of each calendar month, an investment management fee
computed at the annual rate applicable to such Portfolio set forth on Schedule A
hereto. The fee as computed in accordance with Schedule A shall be based upon
the net assets of each Portfolio as to which this Agreement is then effective.
The value of the net assets for each Portfolio shall be calculated in accordance
with the provisions of the Company's Prospectus. For purposes of this Agreement,
on each day when net asset value is not calculated, the net assets of any
Portfolio shall be deemed to be the net assets of such Portfolio as of the close
of business on the last day on which net asset value was determined. Except as
hereinafter set forth, compensation under this Agreement shall be calculated and
accrued daily and the amounts of the daily accruals shall be paid monthly in
arrears (i.e., the applicable annual fee rate divided by 365 as applied to each
prior day's net assets in order to calculate the daily accrual). If this
Agreement becomes effective subsequent to the first day of a month or shall
terminate before the last day of a month, compensation for that part of the
month this Agreement is in effect shall be prorated in a manner consistent with
the calculation of the fees as set forth above.
4. Brokerage. In managing the assets of each Portfolio, the Investment
Manager shall purchase securities from or through and sell securities to or
through such persons, brokers or dealers as the Investment Manager shall deem
appropriate in conformity with applicable law and with the terms of the
Registration Statement, and as the Company's Board of Directors may direct from
time to time. Without limiting the generality of the foregoing, the Investment
Manager will implement the Company's policy of seeking the best execution of
orders, which includes best net prices, in effecting purchases and sales of
portfolio securities for the account of each Portfolio.
On occasions when the Investment Manager deems the purchase or sale of
securities to be in the best interest of one or more Portfolios as well as other
clients of the Investment Manager, the Investment Manager, to the extent
permitted by applicable laws and regulations, may, but shall be under no
obligation to, aggregate the securities to be so sold or purchased in order to
obtain the most favorable price or lower brokerage commissions and efficient
execution. In such event, allocation of the securities so purchased or sold, as
well as the expenses incurred in the transaction, will be made by the Investment
Manager in accordance with its policy for aggregation of orders, as in effect
from time to time, which has been approved by the Company's Board of Directors.
4
<PAGE>
5. Interested Persons. No director, officer or employee of the Company
shall receive from the Company any salary or other compensation as such
director, officer or employee while he or she is at the same time a director,
officer or employee of the Investment Manager or any affiliated person (as
defined in the 1940 Act) thereof. The Investment Manager shall authorize and
permit any of its directors, officers and employees who may be elected as
directors or officers of the Company to serve in the capacities in which they
are elected, subject to their individual consent and to any limitations imposed
by law. All services to be furnished by the Investment Manager under this
Agreement may be furnished through the medium of any such directors, officers or
employees of the Investment Manager.
6. Limitation of Liability. Subject to Section 36 of the 1940 Act, the
Investment Manager shall not be liable for any error of judgment or mistake of
law or for any loss suffered by any Portfolio in connection with the matters to
which this Agreement relates, except a loss resulting from willful misfeasance,
bad faith or gross negligence on the part of the Investment Manager in the
performance of its obligations and duties or by reason of its reckless disregard
of its obligations and duties under this Agreement.
7. Term of Agreement. This Agreement shall become effective upon its
execution by an authorized officer of the respective parties hereto. This
Agreement shall continue in effect with respect to each Portfolio for an initial
two-year term, and thereafter from year to year so long as such continuation is
specifically approved at least annually in conformity with the requirements of
the 1940 Act with regard to investment advisory contracts; provided, however,
that this Agreement may be terminated at any time without the payment of any
penalty, on behalf of any or all of the Portfolios, by the Company, by the Board
or, with respect to any Portfolio, by "vote of a majority of the outstanding
voting securities" (as defined in the 1940 Act) of that Portfolio, or by the
Investment Manager on not less than 60 days' written notice to the other party.
This Agreement shall terminate automatically in the event of its "assignment"
(as defined in the 1940 Act).
Termination of this Agreement shall not affect the right of the Investment
Manager to receive payments on any unpaid balance of the compensation described
in Section 3 hereof earned prior to such termination.
8. Amendments; Partial Invalidity. This Agreement may be amended by mutual
consent, but the consent of the Company must be obtained in conformity with the
requirements of the 1940 Act. If any provision of this Agreement shall be held
or made invalid by a court decision, statute, rule or otherwise, the remainder
shall not be thereby affected.
9. Notices. All notices or other communications hereunder to either party
shall be in writing and shall be deemed to be received on the earlier of the
date actually received or on the fourth day after postmark if such notice is
mailed first class postage prepaid. Notice shall be addressed: (a) if to the
Company, to: President, National Investors Cash Management Fund, Inc., 60 State
Street, Suite 1300, Boston, Massachusetts 02109; or (b) if to the Investment
5
<PAGE>
Manager, to: President, Waterhouse Asset Management, Inc., 100 Wall Street, New
York, New York 10005, or at such other address as either party may designate by
written notice to the other. Notice shall also be deemed sufficient if given by
telex, telecopier, telegram or similar means of same day delivery (with a
confirming copy by mail as provided herein).
10. Separate Portfolios. This Agreement shall be construed to be made by
the Company as a separate agreement with respect to each Portfolio, and under no
circumstances shall the rights, obligations or remedies with respect to a
particular Portfolio be deemed to constitute a right, obligation or remedy
applicable to any other Portfolio.
11. Entire Agreement; Governing Law. This Agreement contains the entire
agreement between the parties hereto and supersedes all prior agreements,
understandings and arrangements with respect to the subject matter hereof. This
Agreement shall be construed in accordance with applicable federal law and the
laws of the State of New York. Anything herein to the contrary notwithstanding,
this Agreement shall not be construed to require, or to impose any duty upon,
either of the parties to do anything in violation of any applicable laws or
regulations.
IN WITNESS WHEREOF, the Company and the Investment Manager have caused this
Agreement to be executed as of the day and year first above written.
NATIONAL INVESTORS CASH MANAGEMENT FUND, INC.
By: /s/ Richard W. Ingram
---------------------
WITNESS:
/s/ Karen Jacoppo-Wood
- ----------------------
WATERHOUSE ASSET MANAGEMENT, INC.
By: /s/ David Hartman
---------------------
WITNESS:
/s/ Michele R. Teichner
- -----------------------
6
<PAGE>
SCHEDULE A
Fees
For the services provided by the Investment Manager under the foregoing
agreement to each of the following Portfolios, the Investment Manager will
receive the following fees:
In the case of each of the Kennedy Cabot Money Market Portfolio, the Kennedy
Cabot U.S. Government Portfolio and the Kennedy Cabot Municipal Portfolio an
annual investment management fee, payable monthly, on a graduated basis equal to
.35 of 1% of the first $1 billion of average daily net assets of each Portfolio,
.34 of 1% of the next $1 billion, and .33 of 1% of average daily net assets of
each Portfolio over $2 billion.
7
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the National
Investors Cash Management Fund, Inc. Semiannual Report for the period ended
October 31, 1998 and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> KENNEDY CABOT MONEY MARKET PORTFOLIO
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 5-MOS
<FISCAL-YEAR-END> APR-30-1999
<PERIOD-START> MAY-20-1998
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 99,955
<INVESTMENTS-AT-VALUE> 99,955
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 517
<TOTAL-ASSETS> 100,472
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 30
<TOTAL-LIABILITIES> 30
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 100,442
<SHARES-COMMON-STOCK> 100,442
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 100,442
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,163
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 2,163
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 2,163
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,163
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 48,317
<NUMBER-OF-SHARES-REDEEMED> 8
<SHARES-REINVESTED> 2,133
<NET-CHANGE-IN-ASSETS> 50,442
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 140
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 13,425
<AVERAGE-NET-ASSETS> 86,798
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.025
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0.025
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the National
Investors Cash Management Fund, Inc. Semiannual Report for the period ended
October 31, 1998 and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<SERIES>
<NUMBER> 2
<NAME> KENNEDY CABOT U.S. GOVERNMENT PORTFOLIO
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 5-MOS
<FISCAL-YEAR-END> APR-30-1999
<PERIOD-START> MAY-20-1998
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 996
<TOTAL-ASSETS> 996
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 996
<SHARES-COMMON-STOCK> 996
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 996
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 158
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 158
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 158
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 158
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 24,162
<SHARES-REINVESTED> 158
<NET-CHANGE-IN-ASSETS> (24,004)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 12
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 8,861
<AVERAGE-NET-ASSETS> 7,115
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.006
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0.006
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the National
Investors Cash Management Fund, Inc. Semiannual Report for the period ended
October 31, 1998 and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> KENNEDY CABOT MUNICIPAL PORTFOLIO
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 5-MOS
<FISCAL-YEAR-END> APR-30-1999
<PERIOD-START> MAY-20-1998
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 996
<TOTAL-ASSETS> 996
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 996
<SHARES-COMMON-STOCK> 996
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 996
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 158
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 158
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 158
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 158
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 24,162
<SHARES-REINVESTED> 158
<NET-CHANGE-IN-ASSETS> (24,004)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 8,856
<AVERAGE-NET-ASSETS> 7,115
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.006
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0.006
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
