<PAGE> 1
[ZURICH LOGO]
'98 ZURICH YIELDWISE MONEY FUND
SEMI-ANNUAL REPORT TO SHAREHOLDERS FOR THE PERIOD ENDED JANUARY 31, 1998
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table of contents
<TABLE>
<CAPTION>
SUBJECT PAGE
<S> <C>
FUND OBJECTIVE 1
- ------------------------------------------------------------------------
PERFORMANCE SUMMARY 2
- ------------------------------------------------------------------------
VARIABLES AFFECTING PERFORMANCE 3
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PERFORMANCE UPDATE 4
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TERMS TO KNOW 7
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PORTFOLIO COMPOSITION 8
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PORTFOLIO OF INVESTMENTS 9
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FINANCIAL STATEMENTS 15
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FINANCIAL HIGHLIGHTS 19
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SPECIAL SHAREHOLDERS' MEETING 20
- ------------------------------------------------------------------------
</TABLE>
<PAGE> 3
fund objective
Zurich YieldWise Money Fund is an open-end, diversified, management investment
company which seeks maximum current income to the extent consistent with
stability of principal by investing in high-quality, short-term money market
instruments. The Fund is designed for investors who are willing to make high
minimum investments and to pay for certain individual transactions in order to
pursue higher yields through lower costs.
An investment in money market funds is neither insured nor guaranteed by the
U.S. Government and there can be no assurance that a fund will be able to
maintain a stable $1.00 share value.
--
1
<PAGE> 4
performance summary
<TABLE>
<CAPTION>
YIELD COMPARISON Fund Yield vs. First Tier
Zurich YieldWise Money Money Market Funds
Fund* is compared to ----------------------------
its IBC Financial Data Weekly 7-Day Average Yield
category -- The First
Tier Money Market Fund First
Average which consists Tier
of all non- Money
institutional taxable Fund Market
money market funds Yield Funds
investing in only ----- -----
first tier (highest <S> <C> <C>
rating) securities 8/5/97 5.77 4.95
tracked by IBC 8/26/97 5.75 4.93
Financial Data. 9/30/97 5.73 4.95
Returns are historical 10/28/97 5.71 4.93
and do not guarantee 11/25/97 5.77 4.96
future results. Fund 12/30/97 5.98 5.07
yields fluctuate. 1/27/98 5.78 4.99
</TABLE>
7-day yield is the Lipper Ranking
annualized net ------------------------------
investment income per Top Fund #1 of Since
share for the period 309 Funds Inception
shown. Gains or losses (April 17,
are not included. 1997)
LIPPER RANKING
Lipper Analytical
Services, Inc.
rankings are based
upon changes in net
asset value with all
dividends reinvested
for the period
indicated as of
1/31/98. Rankings are
historical and do not
reflect future
performance. The
Lipper category used
for comparison is the
Lipper Money Market
Instrument Fund
category.
* Performance reflects 100% fee waiver and expense absorption during this period
which improved results. The manager is waiving management fees of .42% and
absorbing expenses of .07%. Otherwise, the 7-day average yield would have been
5.29% on 1/27/98.
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2
<PAGE> 5
variables affecting
performance
The investment manager invests in high-quality, short-term securities that are
consistent with the fund's specific objective.
Our primary goal is to provide competitive yields while maintaining
preservation of principal and a high degree of liquidity. The specific
securities portfolio managers select have a major impact on reaching our goal.
However, they must continuously analyze other variables which affect share
price stability and fund performance. Traditionally, there are three important
variables which are factored into the decision-making process:
MONETARY POLICY
Monetary Policy is managed by the Federal Reserve Board (the "Fed") and has
a direct impact on short-term interest rates. If the Fed determines that
inflation is climbing, it will enact a policy to decrease or "tighten" the
money supply. With less money available, money lenders can command higher
interest rates on the money market securities they sell. On the other hand, if
the Fed determines the economy is heading toward a recession, it will increase
or "ease" the money supply. With more money for borrowers to access, the
interest rates for money market securities decline.
INTEREST RATES
Interest Rates will affect money fund yields because as investments mature,
the cash received will be reinvested at current money market rates which could
be either higher or lower. Reinvesting at higher interest rates generally
means higher yields for money funds and reinvesting at lower rates generally
means lower yields.
AVERAGE LENGTH OF MATURITY
Average Length of Maturity affects the timing of reinvesting cash from
maturing investments. If interest rates are expected to rise, decreasing the
portfolio's average length of maturity would enable the Fund to purchase
higher-yielding money market securities sooner. Conversely, if rates were
expected to decrease, the Fund would invest in money market securities with a
longer length of maturity in order to maintain higher yields longer.
(ALSO SEE "TERMS TO KNOW" SECTION)
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3
<PAGE> 6
performance update
AN INTERVIEW WITH PORTFOLIO MANAGER FRANK RACHWALSKI
[RACHWALSKI PHOTO]
Although the U.S. economy rolled along at a very
healthy pace during the report period (8/1/97 to
1/31/98), the crisis in Asia caused considerable
turmoil for American investors. The Federal Reserve
Board went into a holding pattern and most
investors wondered what to expect next. Portfolio
manager Frank Rachwalski discusses the market and
Zurich YieldWise Money Fund's performance during
that time.
---------------------------------------------------
<TABLE>
<S><C>
FRANK RACHWALSKI IS A MANAGING DIRECTOR OF SCUDDER KEMPER INVESTMENTS AND
PORTFOLIO MANAGER OF ZURICH YIELDWISE MONEY FUND. MR. RACHWALSKI HOLDS A B.B.A.
AND AN M.B.A. DEGREE FROM LOYOLA UNIVERSITY.
Q
FRANK, DURING THE FIRST SIX MONTHS OF OUR FISCAL YEAR, THE DOMESTIC
ECONOMY SEEMED QUITE STRONG. HOW DID THE UNEXPECTED TURN OF EVENTS IN
ASIA IMPACT OUR ECONOMY?
-------------------------------------------------------------------------
A
You're right about the domestic economy. During the last 6 months it had
shown exceedingly good strength and momentum. In fact, we had excellent
GDP (Gross Domestic Product) numbers with 4th quarter, 1997, exceeding
everybody's growth expectations. There was also a high level of job creation
with a low level of unemployment which signaled the possibility of wage and
inflation increases. In other words, if we just looked at the domestic economy,
the Federal Reserve Board ("the Fed") would have increased rates. However, in
October when the currencies in Thailand, Malaysia and Indonesia came under
speculative attack, followed by the stock market "crash" in those countries, we
started to see a slowdown in U.S. exports while U.S. imports started selling at
much lower prices. In all, this caused a slight drag on the U.S. economy and the
Fed was on hold to see what developments emerged before changing monetary
policy.
- --------------------------------------------------------------------------------
The views expressed in this report reflect those of the portfolio manager only
through the end of the period of the report, as stated
on the cover. The manager's views are subject to change at any time, based on
market and other conditions.
</TABLE>
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4
<PAGE> 7
<TABLE>
<S><C>
Q
WE SAW A LOT OF VOLATILITY IN THE U.S. STOCK MARKET SINCE THE ASIAN
CRISIS FIRST SURFACED. HOW WAS ZURICH YIELDWISE MONEY FUND AFFECTED?
-------------------------------------------------------------------------
A
YieldWise's yield remained quite stable during this period as the Fund
continued to perform extremely well. Any exposure we might have had to
the Asian crisis would have been through holdings in banks that had
outstanding loans in the affected countries. However, our portfolios had
absolutely no investments in institutions that were seriously affected nor did
we have any direct holdings in these countries.
Q
WHAT HAD YOUR STRATEGY BEEN FOR MANAGING THE FUND DURING THIS 6-MONTH
PERIOD?
------------------------------------------------------------------------
A
We'd been keeping the average maturity of our investments on the shorter
side. When the Asian crisis hit, central banks in southeast Asia
liquidated their U.S. Treasury holdings in order to generate more
currency reserves. At the same time, many investors were flocking to U.S.
Treasuries since it is the safest investment you can have. This simultaneous
movement to sell and buy U.S. Treasuries provided an offset to the impact either
movement alone would have had on short-term interest rates. We also saw the
yield curve flatten, which meant that longer-maturity interest rates fell
relative to short-term interest rates. So, there was no incentive for us to
extend the Fund's maturity at that time.
Q
WHAT DO YOU ANTICIPATE HAPPENING WITH INTEREST RATES DURING THE NEXT 6
MONTHS?
------------------------------------------------------------------------
A
Although the Asian situation is still developing, it looks like it isn't
going to be as bad as we initially thought. Also, we see no reason why
the U.S. economy will not continue on a path of very decent growth.
</TABLE>
Continued
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5
<PAGE> 8
<TABLE>
<S><C>
Consumer expectations are high, job creation is strong and housing numbers are
favorable. The big issue is, will there be any drag on the economy coming from
Asia. And, right now it's being counter-balanced by other countries' stronger
growth.
Q
BASED ON THIS OUTLOOK, HOW WILL YOU MANAGE ZURICH YIELDWISE MONEY FUND
FOR THE NEXT SIX MONTHS?
------------------------------------------------------------------------
A
Well, I still don't think there is an incentive to extend maturity at
this point. As I mentioned, the Fed isn't positioned to increase rates
and the yield curve has flattened so there is no reward for longer
maturities. We will continue to closely monitor economic developments,
especially as affected by the Asian situation. We intend to stay in a somewhat
neutral maturity range which will allow us to take advantage of yield
differences that occur because of fluctuations in the market. And, as always, we
will continue to look for value.
</TABLE>
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6
<PAGE> 9
terms to know
YIELD Yield is the amount of net investment income (income
minus expenses including management fees) your
investment has produced over a specific period,
expressed as a percentage of your investment. Capital
gains and losses, infrequent in a money market fund,
are not included.
MATURITY Maturity is the time remaining before an issuer is
scheduled to repay the principal amount on a debt
security. Money market instruments are debt
securities.
YIELD CURVE Yields tend to vary directly with a security's length
of time to maturity. The longer the maturity, the
higher the risk that interest rates could change,
which is why investors are typically rewarded with a
higher yield. For example, the yield on a 1-month
Treasury bill is typically lower than the yield on a
1-year Treasury note. When the relationship between
yield and maturity is plotted on a graph it is called
the YIELD CURVE. If yields for long-term investments
drop, the YIELD CURVE will "flatten" since there will
be less of a difference in yield between shorter-term
and longer-term investments. When this happens, it
also means longer-term securities are relatively less
attractive. When long-term yields increase and the
curve steepens, longer-term securities become
relatively more desirable.
*The yield curve
shown is
hypothetical and
does not
represent the
past or future
performance of
any security
held by the
Zurich YieldWise
Money Fund. Graph
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7
<PAGE> 10
portfolio composition
<TABLE>
<CAPTION>
ZURICH YIELDWISE MONEY FUND On 1/31/98*
<S> <C> <C>
PIE CHART
Commercial Paper 87%
----------------------------------------------
Certificates of Deposit 13
----------------------------------------------
100%
WEIGHTED AVERAGE MATURITY
Zurich YieldWise Money Fund 27 days
----------------------------------------------
First Tier Money Fund
Average+ 58 days
</TABLE>
* Portfolio composition and holdings are subject to change.
+ The portfolio is compared to its IBC Financial Data category: The First Tier
Money Fund Average which consists of all non-institutional taxable money
market funds investing in only first tier (highest rating) securities and
tracked by IBC Financial Data.
--
8
<PAGE> 11
Zurich YieldWise Money Fund
portfolio of investments
January 31, 1998 (value in thousands) (unaudited)
<TABLE>
<CAPTION>
CORPORATE OBLIGATIONS
BANKING -- 3.8% RATE MATURITY VALUE
<S> <C> <C> <C>
Banque National De Paris 5.78% - 5.83% 2/17/98 - 3/9/98 $ 10,160
--------------------------------------------------------------------------
Nordbanken N.A., Inc. 5.83% 3/16/98 9,933
--------------------------------------------------------------------------
(a)Wells Fargo & Co. 5.76% 3/18/98 15,996
--------------------------------------------------------------------------
36,089
BUSINESS LOANS -- 25.0%
Ace Overseas Corp. 5.56% - 5.88% 3/2/98 - 3/10/98 25,368
--------------------------------------------------------------------------
Banner Receivables Corp. 5.72% - 6.57% 2/17/98 - 4/6/98 18,877
--------------------------------------------------------------------------
Broadway Capital Corp. 5.73% - 6.37% 3/19/98 -4/28/98 14,085
--------------------------------------------------------------------------
Centric Capital Corp. 5.59% 3/5/98 8,957
--------------------------------------------------------------------------
Clipper Receivables Corp. 5.60% 2/9/98 11,987
--------------------------------------------------------------------------
First Brands Commercial,
Inc. 5.56% 3/23/98 9,925
--------------------------------------------------------------------------
Gotham Capital Corp. 6.40% 3/20/98 4,960
--------------------------------------------------------------------------
Jet Funding Corp. 5.89% 4/20/98 4,938
--------------------------------------------------------------------------
Madison Funding Corp. 5.56% - 5.57% 2/10/98 - 2/17/98 10,980
--------------------------------------------------------------------------
Preferred Receivables
Funding Corp. 5.52% - 5.56% 2/18/98 - 3/18/98 21,219
--------------------------------------------------------------------------
Ranger Funding Corp. 5.51% 2/6/98 13,292
--------------------------------------------------------------------------
Sheffield Receivables
Corp. 5.86% - 5.88% 2/2/98 - 2/5/98 9,998
--------------------------------------------------------------------------
Thunder Bay Funding, Inc. 5.57% - 5.94% 2/13/98 - 3/12/98 20,928
--------------------------------------------------------------------------
Variable Funding Capital
Corp. 5.55% - 5.87% 2/5/98 - 4/3/98 35,088
--------------------------------------------------------------------------
WCP Funding, Inc. 5.51% - 5.87% 2/13/98 - 2/25/98 19,947
--------------------------------------------------------------------------
Working Capital
Management Co., L.P. 6.09% 2/17/98 4,988
--------------------------------------------------------------------------
235,537
</TABLE>
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9
<PAGE> 12
ZURICH YIELDWISE MONEY FUND PORTFOLIO OF INVESTMENTS, CONTINUED
(value in thousands)
<TABLE>
<CAPTION>
CAPITAL AND EQUIPMENT
LENDING -- 12.7% RATE MATURITY VALUE
<S> <C> <C> <C>
(a)American Honda
Finance Corp. 5.61% - 5.69% 4/9/98 - 4/23/98 $ 8,000
- -------------------------------------------------------------------------------------
(a)Caterpillar Financial
Services Corp. 5.56% 5/18/98 10,000
- -------------------------------------------------------------------------------------
Eiger Capital Corp. 5.53% 3/2/98 - 3/4/98 29,870
- -------------------------------------------------------------------------------------
Enterprise Capital Funding Corp. 5.53% 3/2/98 9,957
- -------------------------------------------------------------------------------------
(a)Ford Motor Credit Co. 5.71% - 6.28% 2/2/98 - 2/26/98 10,007
- -------------------------------------------------------------------------------------
Golden Manager's Acceptance
Corp. 5.53% - 5.54% 2/4/98 - 3/9/98 24,892
- -------------------------------------------------------------------------------------
(a)IBM Credit Corp. 5.75% 2/27/98 9,998
- -------------------------------------------------------------------------------------
Sanwa Business Credit Corp.
5.78% - 6.09% 4/13/98 - 4/27/98 14,805
(a)5.82% 2/9/98 1,501
- ------------------------------------------------------------------------------------
119,030
CAPTIVE BUSINESS LENDING -- 7.6%
British Gas Capital, Inc. 5.56% - 5.82% 2/4/98 - 2/20/98 19,981
- -------------------------------------------------------------------------------------
CSW Credit, Inc. 5.52% 2/19/98 9,974
- -------------------------------------------------------------------------------------
(a)FINOVA Capital Corp. 5.65% 2/13/98 1,500
- -------------------------------------------------------------------------------------
Girsa Funding Corp. 5.72% 2/2/98 24,500
- -------------------------------------------------------------------------------------
Oakland-Alameda County Coliseum,
California 5.87% 2/19/98 10,000
- -------------------------------------------------------------------------------------
(a)Prudential Funding Corp. 5.74% 2/10/98 5,001
- ------------------------------------------------------------------------------------
70,956
CONSUMER LENDING -- 13.4%
Barton Capital Corp. 5.48% - 5.89% 2/6/98 - 2/26/98 29,940
- -------------------------------------------------------------------------------------
</TABLE>
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10
<PAGE> 13
<TABLE>
<CAPTION>
RATE MATURITY VALUE
<S> <C> <C> <C>
Beneficial Corp. 5.56% 3/24/98 $ 11,908
- -------------------------------------------------------------------------------------
CHELA/USA, Inc. 5.86% 2/17/98 19,915
- -------------------------------------------------------------------------------------
Countrywide Home Loans 5.56% 2/3/98 19,997
- -------------------------------------------------------------------------------------
(b)GMAC Mortgage Corporation of
Pennsylvania 5.90% 2/2/98 5,000
- -------------------------------------------------------------------------------------
(a)Household Finance Corp. 5.63% 2/27/98 1,000
- -------------------------------------------------------------------------------------
Sears Roebuck Acceptance Corp. 5.52% - 5.54% 2/19/98 - 3/10/98 16,924
- -------------------------------------------------------------------------------------
Transamerica Finance Corp. 5.54% 2/20/98 - 3/12/98 20,893
- ------------------------------------------------------------------------------------
125,577
CONSUMER PRODUCTS AND SERVICES -- 3.7%
Joseph E. Seagram & Sons, Inc. 5.56% 2/27/98 9,962
- -------------------------------------------------------------------------------------
Tribune Co. 5.80% - 5.82% 2/13/98 - 2/20/98 24,970
- ------------------------------------------------------------------------------------
34,932
DIVERSIFIED FINANCE -- 5.0%
APEX Funding Corp. 5.74% 4/30/98 4,932
- -------------------------------------------------------------------------------------
(a)CIT Group Holdings, Inc. 5.58% 2/2/98 9,994
- -------------------------------------------------------------------------------------
Dynamic Funding Corp. 6.08% 2/4/98 4,998
- -------------------------------------------------------------------------------------
Heller Financial, Inc.
(a) 5.74% 2/20/98 500
6.18% 2/27/98 4,979
- -------------------------------------------------------------------------------------
Old Line Funding Corp. 5.51% - 5.57% 2/2/98 - 3/16/98 21,916
- ------------------------------------------------------------------------------------
47,319
FINANCIAL SERVICES -- 8.2%
(a)Bear Stearns Cos., Inc. 5.59% - 5.70% 2/6/98 - 2/18/98 8,000
- -------------------------------------------------------------------------------------
(a)CS First Boston, Inc. 5.67% 2/2/98 5,000
- -------------------------------------------------------------------------------------
</TABLE>
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11
<PAGE> 14
ZURICH YIELDWISE MONEY FUND PORTFOLIO OF INVESTMENTS, CONTINUED
(value in thousands)
<TABLE>
<CAPTION>
RATE MATURITY VALUE
<S> <C> <C> <C>
(a)Goldman Sachs Group,
L.P. 5.53% 2/10/98 $ 8,000
--------------------------------------------------------------------------
(a)Merrill Lynch & Co.,
Inc. 5.57% - 6.13% 2/4/98 - 3/19/98 15,000
--------------------------------------------------------------------------
(a)Morgan Stanley, Dean
Witter, Discover & Co. 6.01% - 6.34% 3/9/98 - 3/10/98 11,005
--------------------------------------------------------------------------
Salomon, Inc 5.86% 2/13/98 4,991
--------------------------------------------------------------------------
Swedish Export Credit
Corp. 5.53% 2/3/98 24,996
--------------------------------------------------------------------------
76,992
<CAPTION>
UTILITIES -- 8.7%
<S> <C> <C> <C>
AES Hawaii, Inc. 5.51% 2/5/98 29,986
--------------------------------------------------------------------------
Brazos River Authority,
Texas 5.85% 4/7/98 5,000
--------------------------------------------------------------------------
GTE Corp. 5.59% - 6.25% 2/20/98 - 3/26/98 24,852
--------------------------------------------------------------------------
MCI Communications Corp. 5.86% 2/18/98 6,982
--------------------------------------------------------------------------
New Hampshire Industrial
Development Authority 5.87% 2/20/98 15,000
--------------------------------------------------------------------------
81,820
--------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS -- 88.1%
(AVERAGE MATURITY: 28 DAYS) 828,252
</TABLE>
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12
<PAGE> 15
<TABLE>
<CAPTION>
BANK OBLIGATIONS
CERTIFICATES OF DEPOSIT AND BANK NOTES --
U.S. BANKS -- 10.4% RATE MATURITY VALUE
<S> <C> <C> <C>
(a)Amex Centurian Bank 5.68% 2/5/98 $ 5,000
--------------------------------------------------------------------------
(a)AmSouth Bank of Alabama 5.51% 2/23/98 5,998
--------------------------------------------------------------------------
(a)Bank One 5.61% 2/3/98 7,997
--------------------------------------------------------------------------
(a)Bankers Trust Co. 5.69% 2/2/98 500
--------------------------------------------------------------------------
(a)Comerica Bank 5.77% 3/23/98 4,998
--------------------------------------------------------------------------
(a)CoreStates Bank, N.A. 5.57% - 5.69% 2/4/98 - 2/20/98 7,000
--------------------------------------------------------------------------
(a)First National Bank of
Boston 5.64% 2/2/98 7,499
--------------------------------------------------------------------------
(a)First USA Bank 6.02% - 6.21% 3/18/98 - 3/30/98 10,030
--------------------------------------------------------------------------
(a)Key Bank, N.A. 5.58% 2/2/98 6,998
--------------------------------------------------------------------------
MBNA America Bank, N.A. 5.87% 2/23/98 10,000
--------------------------------------------------------------------------
(a)Mellon Bank Corp. 5.68% 2/9/98 7,999
--------------------------------------------------------------------------
(a)Old Kent Bank 5.56% - 5.68% 2/2/98 - 4/13/98 10,497
--------------------------------------------------------------------------
(a)PNC Bank, N.A. 5.58% 2/2/98 12,992
--------------------------------------------------------------------------
97,508
CERTIFICATES OF DEPOSIT --
FOREIGN BANKS -- 2.1%
(a)Banque National De
Paris 5.60% 2/2/98 15,000
--------------------------------------------------------------------------
(a)Barclays Bank, PLC 5.65% 2/2/98 4,999
--------------------------------------------------------------------------
19,999
--------------------------------------------------------------------------
TOTAL BANK OBLIGATIONS -- 12.5%
(AVERAGE MATURITY: 19 DAYS) 117,507
--------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.6%
(AVERAGE MATURITY: 27 DAYS) 945,759
--------------------------------------------------------------------------
(5,267)
LIABILITIES, LESS OTHER ASSETS -- (.6)%
--------------------------------------------------------------------------
NET ASSETS -- 100% $940,492
</TABLE>
SEE ACCOMPANYING NOTES TO PORTFOLIO OF INVESTMENTS.
--
13
<PAGE> 16
notes to
portfolio of investments
Interest rates represent annualized yield to date of maturity, except for
variable rate securities described in Note (a). For each security, cost (for
financial reporting and federal income tax purposes) and carrying value are the
same. Likewise, carrying value approximates principal amount.
(a) Variable rate securities. The rates shown are the current rates at January
31, 1998. The dates shown represent the demand date or the next interest
rate change date.
(b) Illiquid security. At January 31, 1998, the value of illiquid securities was
$5,000,000, which represented .50% of net assets.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
--
14
<PAGE> 17
financial statements
STATEMENT OF ASSETS AND LIABILITIES
January 31, 1998 (in thousands) (unaudited)
<TABLE>
<CAPTION>
ASSETS
<S> <C> <C>
Investments, at amortized cost $945,759
--------------------------------------------------------------------
Interest receivable 1,995
--------------------------------------------------------------------
TOTAL ASSETS 947,754
LIABILITIES AND NET ASSETS
Cash overdraft 5,954
--------------------------------------------------------------------
Dividends payable 1,308
--------------------------------------------------------------------
TOTAL LIABILITIES 7,262
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $940,492
THE PRICING OF SHARES
Shares outstanding 940,492
--------------------------------------------------------------------
Net asset value and redemption price per
share $1.00
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
--
15
<PAGE> 18
ZURICH YIELDWISE MONEY FUND FINANCIAL STATEMENTS, CONTINUED
STATEMENT OF OPERATIONS
For the six months ended January 31, 1998 (in thousands) (unaudited)
<TABLE>
<CAPTION>
NET INVESTMENT INCOME
<S> <C>
Interest income $16,266
------------------------------------------------------------------------
Expenses:
Management fee 1,173
------------------------------------------------------------------------
Custodian and transfer agent fees and related expenses 77
------------------------------------------------------------------------
Reports to shareholders 36
------------------------------------------------------------------------
Registration costs 84
------------------------------------------------------------------------
Professional fees 11
------------------------------------------------------------------------
Total expenses before expense waiver and absorption 1,381
------------------------------------------------------------------------
Less expenses waived and absorbed by the investment
manager (1,381)
------------------------------------------------------------------------
Total expenses absorbed by the Fund --
------------------------------------------------------------------------
Net investment income $16,266
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
(IN THOUSANDS) SIX MONTHS APRIL 17,
ENDED 1997(A)
JANUARY 31, TO
1998 JULY 31,
OPERATIONS, DIVIDENDS AND CAPITAL SHARE ACTIVITY (UNAUDITED) 1997
<S> <C> <C>
Net investment income $ 16,266 1,395
------------------------------------------------------------------------
Dividends to shareholders from net investment
income (16,266) (1,395)
------------------------------------------------------------------------
Capital share transactions
(dollar amounts and number of shares are the
same):
Shares sold 1,030,880 267,580
------------------------------------------------------------------------
Shares issued in reinvestment of
dividends 14,277 1,184
------------------------------------------------------------------------
1,045,157 268,764
------------------------------------------------------------------------
Shares redeemed (349,729) (23,800)
----------------------------------------------------------------------------
NET INCREASE FROM CAPITAL SHARE TRANSACTIONS
AND TOTAL INCREASE IN NET ASSETS 695,428 244,964
NET ASSETS
Beginning of period 245,064 100
----------------------------------------------------------------------------
END OF PERIOD $940,492 $245,064
</TABLE>
(a) Commencement of operations
--
16
<PAGE> 19
notes to
financial statements
1. DESCRIPTION OF THE FUND Zurich YieldWise Money Fund (the Fund) is an
open-end, diversified, management investment company organized as a business
trust under the laws of Massachusetts. The Fund invests in short-term
high-quality obligations of major banks and corporations.
2. SIGNIFICANT ACCOUNTING POLICIES INVESTMENT VALUATION. Investments are
stated at amortized cost, which approximates market value. In the event that a
deviation of 1/2 of 1% or more exists between a Fund's $1.00 per share net
asset value, calculated at amortized cost, and the net asset value calculated
by reference to market-based values, or if there is any other deviation that
the Board of Trustees believes would result in a material dilution to
shareholders or purchasers, the Board of Trustees will promptly consider what
action should be initiated.
INVESTMENT TRANSACTIONS AND INTEREST INCOME. Investment transactions are
accounted for on the trade date (date the order to buy or sell is executed).
Interest income is recorded on the accrual basis and includes amortization of
premium and discount on investments.
FUND SHARE VALUATION AND DIVIDENDS TO SHAREHOLDERS. Fund shares are sold and
redeemed on a continuous basis at net asset value. On each day the New York
Stock Exchange is open for trading, the Fund determines its net asset value
per share (NAV) by dividing the total value of the Fund's investments and
other assets, less liabilities, by the number of Fund shares outstanding. The
NAV is determined at 11:00 a.m., 1:00 p.m. and 3:00 p.m. Chicago time. The
Fund declares a daily dividend, equal to its net investment income for that
day, payable monthly. Net investment income consists of all interest income
plus (minus) all realized gains (losses) on portfolio securities, minus all
expenses of the Fund.
FEDERAL INCOME TAXES. The Fund has complied with the special provisions of the
Internal Revenue Code available to investment companies for the six months
ended January 31, 1998.
--
17
<PAGE> 20
3. TRANSACTIONS WITH AFFILIATES INVESTMENT MANAGER COMBINATION. Effective
December 31, 1997, Zurich Insurance Company, the parent of Zurich Kemper
Investments, Inc. (ZKI), acquired a majority interest in Scudder, Stevens &
Clark, Inc. (Scudder), another major investment manager. As a result of this
transaction, the operations of ZKI were combined with Scudder to form a new
global investment organization named Scudder Kemper Investments, Inc. (Scudder
Kemper). The transaction resulted in the termination of the Fund's investment
management agreement with ZKI, however, a new investment management agreement
between the Fund and Scudder Kemper was approved by the Fund's Board of
Trustees and by the Fund's Shareholders. The new management agreement, was
effective December 31, 1997, is the same in all material respects as the
previous management agreement, except that Scudder Kemper is the new
investment adviser to the Fund. In addition, the names of the Fund's principal
underwriter and shareholder service agent were changed to Kemper Distributors,
Inc. (KDI) and Kemper Service Company (KSvC), respectively.
MANAGEMENT AGREEMENT. The Fund has a management agreement with Scudder Kemper
and pays a management fee at an annual rate of .50% of the first $215 million
of average daily net assets declining to .25% of average daily net assets in
excess of $800 million. During the six months ended January 31, 1998, the Fund
paid no management fees due to an expense waiver by Scudder Kemper.
SHAREHOLDER SERVICES AGREEMENT. Pursuant to a services agreement with the
Fund's transfer agent, KSvC is the shareholder service agent of the Fund.
OFFICERS AND TRUSTEES. Certain officers or trustees of the Fund are also
officers or directors of Scudder Kemper. During the six months ended January
31, 1998, the Fund made no payments to its officers or trustees.
EXPENSE ABSORPTION. Scudder Kemper has agreed to temporarily waive its
management fee and reimburse or pay 100% of the Fund's other operating
expenses through March 1, 1998. In addition, Scudder Kemper has agreed to
waive its management fee and absorb other operating expenses to the extent
necessary to limit total operating expenses to .45% until January 1, 1999.
--
18
<PAGE> 21
financial highlights
<TABLE>
<CAPTION>
SIX MONTHS
ENDED APRIL 17,
JANUARY 31, 1997(A)
1998 TO JULY
PER SHARE OPERATING PERFORMANCE (UNAUDITED) 31, 1997
<S> <C> <C>
Net asset value, beginning of period $1.00 1.00
--------------------------------------------------------------------
Net investment income and dividends declared .03 .02
--------------------------------------------------------------------
Net asset value, end of period $1.00 1.00
--------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 2.93% 1.69
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED)
Expenses after expense waiver -- --
--------------------------------------------------------------------
Net investment income 5.82% 5.66
OTHER RATIOS TO AVERAGE NET ASSETS (ANNUALIZED)
Expenses .49% .60
--------------------------------------------------------------------
Net investment income 5.33% 5.06
SUPPLEMENTAL DATA
Net assets at end of period (IN THOUSANDS) $940,492 245,064
</TABLE>
(a) Commencement of operations
Note: Scudder Kemper has agreed to temporarily waive all operating expenses of
the Fund. The Other Ratios to Average Net Assets are computed without this
expense waiver.
--
19
<PAGE> 22
special shareholders'
meeting
A special shareholders' meeting was held on December 3, 1997 and adjourned as
necessary. Zurich YieldWise Money Fund shareholders were asked to vote on four
separate issues: election of the nine members to the Board of Trustees,
ratification of Ernst & Young LLP as independent auditors, approval of a new
investment management agreement and approval of changes in the Fund's
fundamental investment policies. The following are the results for each issue:
1) ELECTION OF TRUSTEES
<TABLE>
<CAPTION>
FOR WITHHELD
----------- ---------
<S> <C> <C>
DAVID W. BELIN 254,954,299 7,603,680
LEWIS A. BURNHAM 254,363,647 8,194,332
DONALD L. DUNAWAY 255,315,128 7,242,851
ROBERT B. HOFFMAN 255,365,128 7,192,851
DONALD R. JONES 255,365,128 7,192,851
SHIRLEY D. PETERSON 254,687,397 7,870,582
DANIEL PIERCE 254,058,757 8,499,222
WILLIAM P. SOMMERS 255,163,710 7,394,269
EDMOND D. VILLANI 254,915,977 7,642,002
</TABLE>
2) RATIFICATION OF THE SELECTION OF ERNST & YOUNG LLP AS INDEPENDENT AUDITORS
FOR THE FUND
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
----------- --------- ---------
<S> <C> <C>
253,827,001 3,049,630 5,681,347
</TABLE>
3) APPROVAL OF A NEW INVESTMENT MANAGEMENT AGREEMENT WITH SCUDDER KEMPER
INVESTMENTS, INC.
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
----------- --------- ----------
<S> <C> <C>
241,206,809 8,920,349 12,430,821
</TABLE>
4) APPROVAL OF CHANGES IN THE FUND'S FUNDAMENTAL INVESTMENT POLICIES TO PERMIT A
MASTER/FEEDER FUND STRUCTURE.
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
----------- ---------- ----------
<S> <C> <C>
220,791,044 35,319,077 13,518,963
</TABLE>
--
20
<PAGE> 23
[INSIDE BACK COVER]
<PAGE> 24
trustees and officers
Trustees Officers
DANIEL PIERCE MARK S. CASADY LINDA J. WONDRACK
Chairman and Trustee President Vice President
DAVID W. BELIN PHILIP J. COLLORA JOHN R. HEBBLE
Trustee Vice President, Assistant Treasurer
Secretary and Treasurer
LEWIS A. BURNHAM MAUREEN E. KANE
Trustee JERARD K. HARTMAN Assistant Secretary
Vice President
DONALD L. DUNAWAY CAROLINE PEARSON
Trustee THOMAS W. LITTAUER Assistant Secretary
Vice President
ROBERT B. HOFFMAN ELIZABETH C. WERTH
Trustee ANN M. MCCREARY Assistant Secretary
Vice President
DONALD R. JONES
Trustee ROBERT C. PECK, JR.
Vice President
SHIRLEY D. PETERSON
Director KATHRYN L. QUIRK
Vice President
WILLIAM P. SOMMERS
Trustee FRANK J. RACHWALSKI, JR.
Vice President
EDMOND D. VILLANI
Trustee
Legal Counsel Vedder, Price, Kaufman & Kammholz
222 North LaSalle Street
Chicago, IL 60601
Shareholder Service Kemper Service Company
Agent P.O. Box 419066
Kansas City, MO 64141-6066
Custodian and Investors Fiduciary Trust Company
Transfer Agent 801 Pennsylvania
Kansas City, MO 64105
This report must be preceded or
accompanied by a Zurich YieldWise Money Fund prospectus.
[RECYCLE LOGO]
Printed in the U.S.A. on recycled paper.
ZYMF-3 (3/98) 1045050 [ZURICH LOGO]
This report must be preceded or
accompanied by a Zurich YieldWise Money Fund prospectus.
[RECYCLED LOGO]
Printed in the U.S.A on recycled paper.
ZYMF-2 (9/97) 1036950 [ZURICH LOGO]
