<PAGE> 1
[ZURICH LOGO]
Zurich Yieldwise Funds
2000
Semiannual Report to Shareholders for the Period Ended January 31, 2000
<PAGE> 2
table of contents
<TABLE>
<CAPTION>
SUBJECT PAGE
<S> <C>
FUND OBJECTIVES 1
- ------------------------------------------------------------------------
PERFORMANCE SUMMARY 2
- ------------------------------------------------------------------------
VARIABLES AFFECTING PERFORMANCE 5
- ------------------------------------------------------------------------
PERFORMANCE REVIEW 6
- ------------------------------------------------------------------------
TERMS TO KNOW 8
- ------------------------------------------------------------------------
PORTFOLIO COMPOSITION 9
- ------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS 10
- ------------------------------------------------------------------------
FINANCIAL STATEMENTS 25
- ------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 30
- ------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 33
- ------------------------------------------------------------------------
</TABLE>
<PAGE> 3
1
fund objectives
Zurich YieldWise Funds is an open-end, diversified, management investment
company offering a choice of three investment funds. Each 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.
Like all money market funds, an investment in these funds is not insured or
guaranteed by the FDIC or any other government agency. Although money funds seek
to preserve your investment at $1.00 per share, it is possible to lose money.
ZURICH YIELDWISE MONEY FUND
This fund seeks to provide maximum current income to the extent consistent with
stability of principal by investing primarily in high quality short-term
securities.
ZURICH YIELDWISE GOVERNMENT MONEY FUND
This fund seeks maximum current income to the extent consistent with stability
of principal by investing primarily in obligations issued or guaranteed by the
U.S. Government, its agencies or instrumentalities.
ZURICH YIELDWISE MUNICIPAL MONEY FUND
This fund seeks maximum current income that is exempt from regular federal
income taxes to the extent consistent with stability of principal by investing
primarily in a portfolio of short-term, high quality tax-exempt municipal
securities.
<PAGE> 4
2
performance summary
ZURICH YIELDWISE MONEY FUND
YIELD COMPARISON
Zurich YieldWise Money Fund is compared to the First Tier Money Fund Average
which consists of all non-institutional taxable money market funds investing in
only first tier (highest rating) securities tracked by IBC Financial Data.
Returns are historical and do not guarantee future results. Fund yields
fluctuate.*
7-day yield is the annualized net investment income per share for the period
shown. Gains or losses are not included.
[PERFORMANCE GRAPHS]
<TABLE>
<CAPTION>
FUND YIELD VS. FIRST TIER MONEY FUND AVERAGE
FUND YIELD FIRST TIER MONEY FUND AVERAGE
--------------------------- -----------------------------
<S> <C> <C>
8/6/99 4.74 4.41
4.81 4.41
4.92 4.46
4.95 4.48
5.04 4.54
5.04 4.58
5.11 4.60
5.19 4.63
5.21 4.65
5.18 4.67
5.32 4.70
5.30 4.73
5.30 4.76
5.30 4.80
5.47 4.80
5.50 4.86
5.55 4.91
5.59 4.97
5.68 5.00
5.85 5.06
5.80 5.12
5.86 5.16
5.80 5.05
5.80 5.16
5.73 5.14
1/28/00 5.69 5.11
</TABLE>
COMPETITIVE RANKING
The ranking is based upon changes in net asset value with all dividends
reinvested for the year ended 1/31/00. The Lipper category used for comparison
is the Lipper Money Market Instrument Fund category. The ranking is historical
and does not guarantee future performance.
LIPPER RANKING
- --------------
<TABLE>
<CAPTION>
<S> <C> <C>
TOP 2% #7 OF 347 funds 1 Year
</TABLE>
*Performance reflects a partial fee waiver during this period which improved
results. Otherwise, the 7-day average yield would have been 5.55% on 1/28/00.
<PAGE> 5
3
ZURICH YIELDWISE GOVERNMENT MONEY FUND
YIELD COMPARISON
Zurich YieldWise Government Money Fund is compared to the Government Money Fund
Average which consists of all non-institutional government money market funds
tracked by IBC Financial Data. Returns are historical, do not guarantee future
results, and will fluctuate.*
7-day yield is the annualized net investment income per share for the period
shown. Gains or losses are not included.
[PERFORMANCE GRAPHS]
<TABLE>
<CAPTION>
FUND YIELD VS. GOVERNMENT MONEY FUND AVERAGE
FUND YIELD GOVERNMENT MONEY FUND AVERAGE
--------------------------------- -----------------------------
<S> <C> <C>
8/6/99 4.99 4.31
4.91 4.29
4.84 4.33
4.89 4.32
5.24 4.45
5.21 4.48
5.21 4.49
5.31 4.47
5.26 4.48
5.25 4.52
5.29 4.50
5.23 4.52
5.32 4.51
5.36 4.57
5.40 4.57
5.27 4.63
5.41 4.71
5.56 4.80
5.21 4.77
5.70 4.80
5.60 4.81
5.76 4.82
5.81 4.49
5.73 4.83
5.68 4.85
1/28/00 5.81 4.84
</TABLE>
COMPETITIVE RANKING
The ranking is based upon changes in net asset value with all dividends
reinvested for the year ended 1/31/00. The Lipper category used for comparison
is the Lipper Government Money Market Instrument Fund category. The ranking is
historical and does not guarantee future performance.
LIPPER RANKING
- --------------
<TABLE>
<CAPTION>
<S> <C> <C>
TOP FUND #1 OF 126 funds 1 Year
</TABLE>
*Performance reflects a partial fee waiver and expense absorption during this
period which improved results. Otherwise, the 7-day average yield would have
been 5.23% on 1/28/00.
<PAGE> 6
ZURICH YIELDWISE FUNDS PERFORMANCE SUMMARY, CONTINUED
4
ZURICH YIELDWISE MUNICIPAL MONEY FUND
YIELD COMPARISON
Zurich YieldWise Municipal Money Fund is compared to the Tax-Free Money Fund
Average which consists of all non-institutional tax-free money market funds
tracked by IBC Financial Data. Returns are historical, do not guarantee future
results, and will fluctuate.*
7-day yield is the annualized net investment income per share for the period
shown. Gains or losses are not included.
[PERFORMANCE GRAPHS]
<TABLE>
<CAPTION>
FUND YIELD VS. TAX-FREE MONEY FUND AVERAGE
FUND YIELD TAX-FREE MONEY FUND AVERAGE
-------------------------------- ---------------------------
<S> <C> <C>
8/6/99 3.25 2.50
3.13 2.41
3.25 2.53
3.30 2.54
3.35 2.58
3.29 2.53
3.28 2.54
3.49 2.72
3.72 2.95
3.64 2.93
3.57 2.66
3.44 2.69
3.42 2.72
3.49 2.79
3.63 2.75
3.80 2.90
3.82 3.02
3.88 3.08
3.54 2.90
3.92 2.74
3.79 3.01
4.11 3.48
4.21 3.88
3.70 2.79
3.57 2.55
1/28/00 3.56 2.62
</TABLE>
COMPETITIVE RANKING
The ranking is based upon changes in net asset value with all dividends
reinvested for the year ended 1/31/00. The Lipper category used for comparison
is the Lipper Tax-Free Money Market Instrument Fund category. The ranking is
historical and does not guarantee future performance.
LIPPER RANKING
- --------------
<TABLE>
<CAPTION>
<S> <C> <C>
TOP FUND #1 OF 136 funds 1 Year
</TABLE>
*Performance reflects a 100% fee waiver and expense absorption during this
period which improved results. Otherwise, the 7-day average yield would have
been 2.86% on 1/28/00.
<PAGE> 7
5
variables affecting
performance
The investment manager invests in high-quality, short-term securities that are
consistent with each 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)
<PAGE> 8
6
performance review
AN INTERVIEW WITH PORTFOLIO MANAGER FRANK RACHWALSKI
[RACHWALSKI PHOTO]
FRANK RACHWALSKI IS A MANAGING DIRECTOR OF SCUDDER
KEMPER INVESTMENTS, INC. AND LEAD PORTFOLIO MANAGER
OF ZURICH YIELDWISE FUNDS. MR. RACHWALSKI HOLDS A
B.B.A. AND AN M.B.A. DEGREE FROM LOYOLA UNIVERSITY.
THE FOLLOWING IS MR. RACHWALSKI'S REVIEW OF THE
ECONOMIC CONDITIONS AND FUND RESULTS DURING THE
REPORT PERIOD AND WHAT MAY HAPPEN IN THE MONTHS
AHEAD.
- --------------------------------------------------------------------------------
Over the past six months, we saw very strong U.S. economic conditions with
growth above 5%. In addition, the economies in both Europe and Asia appeared to
be on the recovery platform, which meant reasonable growth in exports, keeping
the U.S. economy strong. The unemployment rate in the U.S. continued to decline
and consumer confidence continued to rise. This prompted the Federal Reserve
Board ("the Fed") to raise interest rates .25% on three separate occasions last
year to help stabilize the financial markets and economic conditions.
- --------------------------------------------------------------------------------
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.
<PAGE> 9
7
As a result, we took a defensive position with the Funds by keeping average
maturity relatively short, to take advantage of additional rate increases as
they occurred. Because of the uncertainties associated with the calendar change
to a new millennium, including mass concern whether or not systems would
function normally, we felt that we should be less aggressive. Therefore, we
positioned the Funds in order to provide liquidity for investors when and if
they needed it.
As 1999 came to a close, it became clear the Fund would have sufficient
liquidity to meet demand. Also the market was reacting appropriately without a
lot of safety concerns, especially given that the Fed provided whatever
liquidity the market needed to function routinely in the final months of 1999.
Therefore, the Funds took advantage of income incentives being offered for
extending maturities into the new year, which were very attractive in both
taxable and tax-exempt issues.
Considering this information, we plan to continue with our slightly defensive
positioning and will manage each of the Funds so that we continue to offer you
attractive yield potential with a high degree of stability, making the funds an
excellent place for you to invest.
<PAGE> 10
8
terms to know
7-DAY AVERAGE
YIELD Every money market fund calculates its yield according
to a standardized method prescribed by the Securities
and Exchange Commission. Each day's yield is an average
taken over a 7-day period. This average helps to
minimize the effect of daily fluctuation in fund income,
and therefore yield.
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.
FEDERAL FUNDS
("FED FUNDS") Commercial banks are required to keep these funds on
deposit at the Federal Reserve Bank in their district.
In order to meet these reserve requirements,
occasionally commercial banks need to borrow funds.
These funds are borrowed from banks that have an excess
of the required amount on hand in what is called the
"Fed Funds Market". The interest rate on these loans is
called the "Fed Funds Rate" and is the key money market
rate which influences all other short-term rates.
<PAGE> 11
9
portfolio composition
<TABLE>
<CAPTION>
ZURICH YIELDWISE MONEY FUND On 1/31/00*
[ZURICH YIELDWISE MONEY FUND PIE CHART]
<S> <C> <C>
56%
- Commercial paper
------------------------------------------------
10%
- Certificates of Deposit
------------------------------------------------
32%
- Short-term and medium-term
notes
------------------------------------------------
2%
- Repurchase agreements
------------------------------------------------
100%
Total
WEIGHTED AVERAGE MATURITY+
25 days
Zurich YieldWise Money Fund
------------------------------------------------
48 days
First Tier Money Fund Average
<CAPTION>
ZURICH YIELDWISE GOVERNMENT MONEY FUND On 1/31/00*
[ZURICH YIELDWISE GOVERNMENT MONEY FUND PIE CHART]
<S> <C> <C>
33%
- Repurchase agreements
------------------------------------------------
67%
- Federal agencies
------------------------------------------------
100%
Total
WEIGHTED AVERAGE MATURITY+
24 days
Zurich YieldWise Government
Money Fund
------------------------------------------------
47 days
Government Money Fund Average
<CAPTION>
ZURICH YIELDWISE MUNICIPAL MONEY FUND On 1/31/00*
[ZURICH YIELDWISE MUNICIPAL MONEY FUND PIE CHART]
<S> <C> <C>
59%
- Tax-exempt commercial paper
------------------------------------------------
41%
- Variable rate demand notes
------------------------------------------------
100%
Total
WEIGHTED AVERAGE MATURITY+
30 days
Zurich YieldWise Municipal Money
Fund
------------------------------------------------
42 days
Tax-Free Money Fund Average
</TABLE>
* Portfolio composition and holdings are subject to change.
+ The funds are compared to their respective IBC Financial Data category: The
First Tier Money Fund Average consists of all non-institutional taxable money
market funds investing in only first tier (highest rating) securities;
Government Money Fund Average includes all non-institutional government money
market funds; Tax-Exempt Money Fund Average consists of all non-institutional
tax-free money market funds. Weighted average maturity is as of 1/25/00.
<PAGE> 12
10
Zurich YieldWise Money Fund
portfolio of investments
January 31, 2000 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT -- 2.6% AMOUNT VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Lehman Brothers Holdings Inc., 5.78%,
02/01/2000 to be repurchased at
$25,003,948
(COST: $25,000,000) (b) $25,000,000 $ 25,000,000
--------------------------------------------------------------------------
COMMERCIAL PAPER -- 56.2%
--------------------------------------------------------------------------
Ace Overseas Corp., 6.00%, 03/10/2000 10,000,000 9,938,461
--------------------------------------------------------------------------
Amsterdam Funding Corp., 5.70%, 02/07/2000 15,000,000 14,985,825
--------------------------------------------------------------------------
Amsterdam Funding Corp., 5.73%, 02/15/2000 10,000,000 9,977,833
--------------------------------------------------------------------------
Atlantis One Funding Corp., 5.81%, 15,985,000 15,857,342
03/22/2000
--------------------------------------------------------------------------
BankBoston, N.A., 5.92%, 03/06/2000 10,000,000 10,000,000
--------------------------------------------------------------------------
Bank of Novia Scotia, 5.83%, 02/03/2000 10,000,000 10,000,000
--------------------------------------------------------------------------
Barton Capital Corp., 5.97%, 02/10/2000 10,000,000 9,985,275
--------------------------------------------------------------------------
Barton Capital Corp., 6.04%, 02/23/2000 10,000,000 9,963,578
--------------------------------------------------------------------------
Beta Finance, Inc., 5.98%, 03/20/2000 10,000,000 9,922,667
--------------------------------------------------------------------------
British Gas Capital, Inc., 5.96%, 10,000,000 9,922,933
03/20/2000
--------------------------------------------------------------------------
California Pollution Control Financing
Authority, 5.53%, 02/04/2000 10,000,000 10,000,000
--------------------------------------------------------------------------
China Merchants, 6.16%, 02/25/2000 10,000,000 9,959,800
--------------------------------------------------------------------------
Dresdner US Finance Inc., 5.80%, 25,000,000 24,800,521
03/22/2000
--------------------------------------------------------------------------
Falcon Asset Securitization Corp., 6.08%, 10,000,000 9,998,328
02/02/2000
--------------------------------------------------------------------------
Falcon Asset Securitization Corp., 5.70%, 10,000,000 9,974,800
02/17/2000
--------------------------------------------------------------------------
Federal National Mortgage Association,
5.08%, 02/23/2000 10,000,000 9,999,765
--------------------------------------------------------------------------
Forrestal Funding, 5.82%, 03/16/2000 8,669,000 8,607,864
--------------------------------------------------------------------------
Four Winds Funding Corp., 5.97%, 5,000,000 5,000,000
02/01/2000
--------------------------------------------------------------------------
Four Winds Funding Corp., 5.68%, 15,000,000 14,985,875
02/07/2000
--------------------------------------------------------------------------
Four Winds Funding Corp., 5.76%, 15,000,000 14,961,800
02/17/2000
--------------------------------------------------------------------------
Galaxy Funding Corp., 6.05%, 02/24/2000 5,000,000 4,980,993
--------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 13
11
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
Giro Funding Corp., 6.16%, 02/01/2000 $10,000,000 $ 10,000,000
--------------------------------------------------------------------------
Girsa Funding Corp., 6.13%, 04/24/2000 10,000,000 9,862,819
--------------------------------------------------------------------------
GMAC Mortgage Corp. of Pennsylvania,
5.91%, 02/01/2000 10,000,000 10,000,000
--------------------------------------------------------------------------
Goldman Sachs Group, L.P., 6.21%, 10,000,000 10,000,000
02/03/2000
--------------------------------------------------------------------------
International Securitization Corp., 5.75%,
02/23/2000 10,000,000 9,965,044
--------------------------------------------------------------------------
Intrepid Funding Master Trust, 6.00%, 10,000,000 9,954,578
02/29/2000
--------------------------------------------------------------------------
Kitty Hawk Funding Corp., 6.08%, 10,000,000 9,986,644
02/09/2000
--------------------------------------------------------------------------
Kitty Hawk Funding Corp., 6.06%, 5,000,000 4,977,594
02/28/2000
--------------------------------------------------------------------------
Moat Funding, LLC, 6.07%, 02/14/2000 15,000,000 14,967,663
--------------------------------------------------------------------------
Mont Blanc Capital Corp., 5.73%, 7,000,000 6,974,508
02/24/2000
--------------------------------------------------------------------------
Mont Blanc Capital Corp., 5.80%, 17,000,000 16,880,528
03/16/2000
--------------------------------------------------------------------------
Monte Rosa Capital Corp., 5.98%, 5,000,000 4,997,563
02/04/2000
--------------------------------------------------------------------------
Oakland-Alameda County Coliseum Authority,
5.55%, 02/04/2000 10,000,000 10,000,000
--------------------------------------------------------------------------
Old Line Funding Corp., 6.13%, 02/10/2000 5,000,000 4,992,500
--------------------------------------------------------------------------
Park Avenue Receivables, 5.98%, 02/16/2000 5,000,000 4,987,813
--------------------------------------------------------------------------
Park Avenue Receivables, 5.72%, 02/22/2000 8,550,000 8,521,621
--------------------------------------------------------------------------
Park Avenue Receivables, 5.79%, 03/06/2000 15,000,000 14,918,542
--------------------------------------------------------------------------
Preferred Receivables Funding Corp.,
5.83%, 03/20/2000 25,000,000 24,807,333
--------------------------------------------------------------------------
Quincy Capital Corp., 6.13%, 02/10/2000 10,000,000 9,984,975
--------------------------------------------------------------------------
Receivables Capital Corp., 5.99%, 5,000,000 4,992,613
02/10/2000
--------------------------------------------------------------------------
Royal Bank of Scotland, 6.04%, 02/17/2000 10,000,000 9,973,733
--------------------------------------------------------------------------
Salomon Smith Barney Holdings, 6.02%, 10,000,000 9,990,083
02/07/2000
--------------------------------------------------------------------------
Sears Roebuck Acceptance Corp., 6.23%, 13,400,000 13,352,318
02/22/2000
--------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 14
ZURICH YIELDWISE MONEY FUND PORTFOLIO OF INVESTMENTS, CONTINUED
12
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
Sheffield Receivables Corp., 5.85%, $25,000,000 $ 24,798,611
03/22/2000
--------------------------------------------------------------------------
Superior Funding Corp., 6.13%, 02/10/2000 10,000,000 9,984,875
--------------------------------------------------------------------------
Superior Funding Corp., 5.83%, 03/16/2000 20,000,000 19,858,711
--------------------------------------------------------------------------
Texas, Brazos River Authority, 6.09%, 10,000,000 10,000,000
02/08/2000
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(COST: $533,554,329) 533,554,329
CERTIFICATES OF DEPOSIT -- 9.7%
Allfirst Bank, 6.18%*, 03/07/2000 10,000,000 9,997,658
--------------------------------------------------------------------------
Barclays Bank, PLC, 5.64%*, 02/01/2000 7,500,000 7,498,753
--------------------------------------------------------------------------
Commerzbank AG, 5.71%*, 02/12/2000 10,000,000 9,998,602
--------------------------------------------------------------------------
Credit Suisse First Boston, 5.72%*, 15,000,000 15,000,000
02/01/2000
--------------------------------------------------------------------------
Deutsche Bank, AG, 5.64%*, 02/01/2000 10,000,000 9,998,781
--------------------------------------------------------------------------
Dresdner Bank, 5.78%*, 02/26/2000 15,000,000 14,997,221
--------------------------------------------------------------------------
National Bank of Canada, 6.09%*, 10,000,000 9,996,059
02/22/2000
--------------------------------------------------------------------------
Skandinaviska Enskilda Banken, 6.02%*, 10,000,000 9,998,591
02/22/2000
--------------------------------------------------------------------------
Skandinaviska Enskilda Banken, 5.84%*, 5,000,000 4,998,871
02/29/2000
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT
(COST: $92,484,536) 92,484,536
SHORT-TERM AND MEDIUM-TERM NOTES -- 31.5%
American Express Centurion Bank, 5.77%*,
02/21/2000 10,000,000 10,000,000
--------------------------------------------------------------------------
BankOne Corp. 6.24%*, 02/04/2000 5,000,000 4,999,754
--------------------------------------------------------------------------
BankOne Corp. 6.03%*, 04/05/2000 5,000,000 4,998,350
--------------------------------------------------------------------------
Caterpillar Financial Services Corp.,
6.07%*, 02/16/2000 10,000,000 9,998,900
--------------------------------------------------------------------------
Comerica Bank, 5.65%*, 02/01/2000 10,000,000 9,999,441
--------------------------------------------------------------------------
CoreState Bank, N.A., 5.70%*, 02/01/2000 15,000,000 14,999,972
--------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 15
13
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
FINOVA Capital Corp., 6.17%*, 03/13/2000 $25,000,000 $ 25,000,000
--------------------------------------------------------------------------
First Bank, N.A., 5.85%*, 02/19/2000 10,000,000 10,001,677
--------------------------------------------------------------------------
Fleet National Bank, 6.33%*, 02/15/2000 10,000,000 10,003,599
--------------------------------------------------------------------------
Ford Motor Credit Co., 6.04%*, 02/18/2000 5,000,000 4,997,797
--------------------------------------------------------------------------
Ford Motor Credit Co., 6.17%*, 03/30/2000 5,000,000 4,996,744
--------------------------------------------------------------------------
GTE Corp., 6.13%*, 3/10/2000 20,000,000 19,985,605
--------------------------------------------------------------------------
Heller Financial, Inc., 6.22%*, 03/07/2000 10,000,000 10,003,208
--------------------------------------------------------------------------
Heller Financial, Inc., 6.25%*, 04/07/2000 25,000,000 25,007,509
--------------------------------------------------------------------------
Household Finance Corp., 5.86%*, 10,000,000 10,000,727
02/10/2000
--------------------------------------------------------------------------
J.P. Morgan & Co., Inc., 5.81%*, 10,000,000 10,000,000
02/03/2000
--------------------------------------------------------------------------
John Deere Capital Corp., 5.65%*, 10,000,000 9,999,408
02/01/2000
--------------------------------------------------------------------------
Key Bank, N.A., 5.78%*, 02/08/2000 10,000,000 9,995,393
--------------------------------------------------------------------------
MBNA America Bank, N.A., 6.27%*, 10,000,000 9,995,702
03/10/2000
--------------------------------------------------------------------------
Mellon Bank, N.A., 6.10%*, 02/29/2000 10,000,000 9,998,270
--------------------------------------------------------------------------
National City Bank of Kentucky, 6.11%*,
04/07/2000 10,000,000 10,004,515
--------------------------------------------------------------------------
National Rural Utilities Cooperative 5,000,000 4,999,750
Finance Corp., 5.83%*, 02/02/2000
--------------------------------------------------------------------------
National Rural Utilities Cooperative 5,000,000 4,999,805
Finance Corp., 6.14%*, 03/25/2000
--------------------------------------------------------------------------
Norwest Financial Inc., 5.81%*, 02/07/2000 5,000,000 4,998,234
--------------------------------------------------------------------------
PNC Bank Corp., 5.80%*, 02/28/2000 10,000,000 10,000,303
--------------------------------------------------------------------------
Sanwa Business Credit Co., 6.16%*, 7,000,000 7,000,000
03/13/2000
--------------------------------------------------------------------------
SMM Trust Series 1999-A, 6.15%*, 12,000,000 12,000,000
04/15/2000
--------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 16
ZURICH YIELDWISE MONEY FUND PORTFOLIO OF INVESTMENTS, CONTINUED
14
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
Transamerica Finance Corp., 6.13%*, $10,000,000 $ 10,000,000
03/01/2000
--------------------------------------------------------------------------
Wells Fargo & Co., 6.06%*, 03/29/2000 5,000,000 4,999,264
--------------------------------------------------------------------------
Xerox Credit Corp., 6.04%*, 02/08/2000 5,000,000 4,998,436
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TOTAL SHORT-TERM AND MEDIUM-TERM NOTES
(COST: $298,982,363) 298,982,363
--------------------------------------------------------------------------
TOTAL INVESTMENT PORTFOLIO -- 100%
(COST: $950,021,228) (a) $950,021,228
</TABLE>
Interest rates represent annualized yield to date of maturity, except for
floating rate securities described below.
(a) Cost for federal income tax purposes is $950,021,228.
(b) Repurchase agreements are fully collateralized by U.S. Treasury or
Government agency securities.
* Floating rate notes are securities whose yields vary with a designated market
index or market rate, such as the coupon-equivalent of the Treasury bill
rate. These securities are shown at their current rate as of January 31,
2000. The dates shown represent the demand date or next interest rate change
date.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 17
15
Zurich YieldWise Government Money Fund
portfolio of investments
January 31, 2000 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENTS--33.1% AMOUNT VALUE
<S> <C> <C>
Chase Securities, Inc., 5.65%, 02/03/2000, to be
repurchased at $15,030,185 $15,000,000 $ 15,000,000
----------------------------------------------------------------------------------
Chase Securities, Inc., 5.70%, 02/09/2000, to be
repurchased at $15,049,192 15,000,000 15,000,000
----------------------------------------------------------------------------------
Goldman Sachs, Inc., 5.62%, 02/07/2000, to be
repurchased at $20,043,112 20,000,000 20,000,000
----------------------------------------------------------------------------------
Lehman Brothers, Inc., 5.78%, 02/01/2000, to be
repurchased at $23,003,642 23,000,000 23,000,000
----------------------------------------------------------------------------------
Merrill Lynch, Inc., 5.58%, 02/03/2000, to be
repurchased at $5,010,701 5,000,000 5,000,000
----------------------------------------------------------------------------------
----------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(COST $78,000,000) (b) 78,000,000
<CAPTION>
SHORT-TERM AND MEDIUM-TERM NOTES--66.9%
<S> <C> <C>
Federal Farm Credit Bank, 5.60%*, 02/01/2000 1,500,000 1,499,995
----------------------------------------------------------------------------------
Federal Home Loan Bank, 5.55%*, 03/17/2000 4,000,000 3,999,759
----------------------------------------------------------------------------------
Federal Home Loan Bank, 5.55%*, 02/01/2000 4,500,000 4,499,612
----------------------------------------------------------------------------------
Federal Home Loan Bank, 5.66%*, 02/28/2000 10,000,000 9,997,568
----------------------------------------------------------------------------------
Federal Home Loan Bank, 5.05%, 03/01/2000 2,000,000 2,000,000
----------------------------------------------------------------------------------
Federal Home Loan Bank, 5.05%, 03/03/2000 1,000,000 1,000,000
----------------------------------------------------------------------------------
Federal Home Loan Bank, 5.69%, 03/29/2000 20,000,000 19,824,567
----------------------------------------------------------------------------------
Federal Home Loan Bank, 5.12%, 05/17/2000 7,000,000 7,000,000
----------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., 5.60%*, 4,000,000 3,999,064
02/18/2000
----------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., 5.68%, 3,000,000 2,983,667
03/07/2000
----------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., 5.65%, 6,000,000 5,949,583
03/27/2000
----------------------------------------------------------------------------------
Federal National Mortgage Association, 5.08%, 500,000 499,988
02/23/2000
----------------------------------------------------------------------------------
Federal National Mortgage Association, 5.62%*, 10,000,000 9,997,404
02/01/2000
----------------------------------------------------------------------------------
Federal National Mortgage Association, 5.56%, 12,000,000 11,985,600
02/09/2000
----------------------------------------------------------------------------------
Federal National Mortgage Association, 5.65%*, 25,000,000 24,983,880
02/22/2000
----------------------------------------------------------------------------------
Federal National Mortgage Association, 5.93%*, 3,000,000 2,999,807
03/06/2000
----------------------------------------------------------------------------------
Federal National Mortgage Association, 5.76%, 10,000,000 9,871,119
04/24/2000
----------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 18
ZURICH YIELDWISE GOVERNMENT MONEY FUND PORTFOLIO OF INVESTMENTS, CONTINUED
16
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
Student Loan Marketing Association, 5.46%*, $ 3,000,000 $ 2,999,743
02/01/2000
----------------------------------------------------------------------------------
Student Loan Marketing Association, 6.20%*, 6,500,000 6,499,744
02/01/2000
----------------------------------------------------------------------------------
Student Loan Marketing Association, 6.30%*, 25,000,000 24,995,956
02/01/2000
----------------------------------------------------------------------------------
----------------------------------------------------------------------------------
TOTAL SHORT-TERM AND MEDIUM-TERM NOTES
(COST $157,587,056) 157,587,056
----------------------------------------------------------------------------------
TOTAL INVESTMENT PORTFOLIO -- 100%
(COST $235,587,056) (a) $ 235,587,056
</TABLE>
Interest rates represent annualized yield to date of maturity, except for
floating rate securities described below.
(a) Cost for federal income tax purposes was $235,587,056.
(b) Repurchase agreements are fully collateralized by U.S. Treasury or
Government agency securities.
* Floating rate notes are securities whose yields vary with a designated
market index or market rate, such as the coupon-equivalent of the Treasury
bill rate. These securities are shown at their current rate as of January
31, 2000. The dates shown represent the demand date or next interest rate
change date.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 19
17
Zurich YieldWise Municipal Money Fund
portfolio of investments
January 31, 2000 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
VARIABLE RATE DEMAND SECURITIES*--40.8% AMOUNT VALUE
<S> <C> <C>
ALABAMA
Phoenix County
Industrial Development Board, 3.70% $3,600,000 $3,600,000
ARKANSAS
Pocahontas Industrial Development Revenue,
3.60% 2,500,000 2,500,000
COLORADO
Health Facilities Authority
Frasier Meadows Manor Project, 3.33% 1,490,000 1,490,000
DISTRICT OF COLUMBIA
General Fund Recovery,
General Obligation, 3.65% 2,000,000 2,000,000
FLORIDA
Indian River County
Hospital Revenue, 3.30% 3,000,000 3,000,000
------------------------------------------------------------------------
Sarasota County
Health Facilities Authority, 3.35% 1,900,000 1,900,000
------------------------------------------------------------------------
University of North Florida
1994 Series, 3.25% 2,000,000 2,000,000
1997 Series, 3.25% 4,000,000 4,000,000
GEORGIA
Fayette County
Educational Facilities Authority, 3.30% 1,000,000 1,000,000
------------------------------------------------------------------------
Fulton County
United Way Project, 3.30% 1,000,000 1,000,000
ILLINOIS
Carol Stream
MAAC Machinery Co. Project, 3.60% 800,000 800,000
------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 20
ZURICH YIELDWISE MUNICIPAL MONEY FUND PORTFOLIO OF INVESTMENTS, CONTINUED
18
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
Development Financial Authority
Adventist Health Systems, 3.33% $ 685,000 $ 685,000
------------------------------------------------------------------------
Student Assistance Commission
Student Loan Revenue - Series A, 3.25% 1,900,000 1,900,000
Student Loan Revenue - Series 1997, 3.25% 800,000 800,000
KENTUCKY
Lexington
YMCA Central Kentucky Project, 3.40% 2,000,000 2,000,000
------------------------------------------------------------------------
Mason County
Pollution Control Revenue, 3.25% 600,000 600,000
------------------------------------------------------------------------
Mayfield
Multi-City Lease Revenue Bonds, 3.30% 775,000 775,000
MICHIGAN
Farmington Hills
Brookfield Building Association Project,
3.70% 900,000 900,000
------------------------------------------------------------------------
Genesee County
Atlas Technologies, Inc. Project, 3.50% 400,000 400,000
------------------------------------------------------------------------
Hospital Finance Authority
Hospital Equipment Loan Project, 3.32% 1,150,000 1,150,000
------------------------------------------------------------------------
Oakland County
Economic Development Authority, 3.45% 800,000 800,000
------------------------------------------------------------------------
Job Development Authority, Kentwood
Residence, 3.35% 1,100,000 1,100,000
------------------------------------------------------------------------
Strategic Fund
Continental Aluminum Project, 3.45% 900,000 900,000
------------------------------------------------------------------------
Creative Foam Corp. Project, 3.50% 800,000 800,000
------------------------------------------------------------------------
Hope Network Project, 3.35% 600,000 600,000
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 21
19
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
NEW JERSEY
Salem County
Pollution Control Revenue, 3.75% $2,000,000 $2,000,000
NORTH DAKOTA
Mercer County
Pollution Control Revenue, 3.25% 1,055,000 1,055,000
PENNSYLVANIA
Delaware Valley
Regional Finance Authority, 3.20% 2,500,000 2,500,000
------------------------------------------------------------------------
Higher Education Assistance Agency
Student Loan Revenue - Series A, 3.35% 700,000 700,000
Student Loan Revenue - Series B, 3.35% 300,000 300,000
------------------------------------------------------------------------
Lancaster County
Hospital Finance Authority, 3.30% 2,000,000 2,000,000
TENNESSEE
Maury County
Industrial Development Board -
Saturn Corp. Project, 3.45% 1,650,000 1,650,000
TEXAS
Harris County
Health Facilities Authority, 3.70% 1,000,000 1,000,000
------------------------------------------------------------------------
Panhandle Plains
Higher Education Authority,
Student Loan Revenue, 3.25% 2,200,000 2,200,000
------------------------------------------------------------------------
Sabine River Authority
Pollution Control Revenue, 3.70% 5,500,000 5,500,000
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 22
ZURICH YIELDWISE MUNICIPAL MONEY FUND PORTFOLIO OF INVESTMENTS, CONTINUED
20
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
VERMONT
Economic Authority
Industrial Development Revenue, 3.60% $5,000,000 $5,000,000
------------------------------------------------------------------------
Student Assistance Corp.
Student Loan Revenue, 3.75% 7,680,000 7,680,000
WISCONSIN
Eau Claire
Pope & Talbot, Inc. Project, 3.50% 600,000 600,000
------------------------------------------------------------------------
Wausau
Minnesota Mining & Manufacturing Project,
3.46% 600,000 600,000
WEST VIRGINIA
Preston County
Allegheny Wood Products, Inc. Project, 3.50% 450,000 450,000
----------------------------------------------------------------------------
TOTAL VARIABLE RATE DEMAND SECURITIES
(COST $69,935,000) 69,935,000
OTHER SECURITIES -- 59.2%
ALABAMA
Special Care Facilities Financing Authority
of Birmingham, 3.80%, 02/16/00 1,000,000 1,000,000
ALASKA
City of Valdez
Atlantic Richfield Co. Project, 3.75%,
04/11/00 1,000,000 1,000,000
ARIZONA
Salt River Agricultural Improvement and Power
District, 3.85%, 02/14/00 3,200,000 3,200,000
-------------------------------------------------------------------------
Salt River Agricultural Improvement and Power
District, 3.80%, 04/10/00 1,000,000 1,000,000
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 23
21
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
COLORADO
Platte River
Power Authority, 3.50%, 03/13/00 $2,000,000 $2,000,000
FLORIDA
Orange County
Health Facilities Authority, 3.65%,
02/10/2000 1,000,000 1,000,000
-------------------------------------------------------------------------
Orlando
Capital Improvements Authority - 94A, 3.80%,
04/10/2000 1,000,000 1,000,000
-------------------------------------------------------------------------
Capital Improvements Authority - 94A, 3.85%,
04/12/2000 3,600,000 3,600,000
-------------------------------------------------------------------------
Pinellas
Educational Facilities Authority, 3.70%,
02/15/2000 1,300,000 1,300,000
-------------------------------------------------------------------------
Sunshine State Governmental Financing
Commission, 3.90%, 02/17/2000 2,000,000 2,000,000
-------------------------------------------------------------------------
Sunshine State Governmental Financing
Commission, 3.50%, 03/01/2000 1,000,000 1,000,000
GEORGIA
Monroe County
Georgia Power Company, 3.70%, 02/18/2000 2,000,000 2,000,000
-------------------------------------------------------------------------
Municipal Electric Authority, 3.85%,
02/08/2000 3,000,000 3,000,000
ILLINOIS
Health Facilities Authority, 3.75%,
04/11/2000 2,000,000 2,000,000
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 24
ZURICH YIELDWISE MUNICIPAL MONEY FUND PORTFOLIO OF INVESTMENTS, CONTINUED
22
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
INDIANA
Health Facilities Authority, 3.80%, $3,000,000 $3,000,000
02/09/2000
-------------------------------------------------------------------------
Jasper County
Pollution Control Revenue - Series B, 4.00%,
02/08/2000 2,000,000 2,000,000
Pollution Control Revenue - Series C, 4.00%,
02/07/2000 1,500,000 1,500,000
Pollution Control Revenue - Series C, 4.00%,
02/15/2000 2,000,000 2,000,000
KENTUCKY
Danville
Multi-County Lease Revenue,
3.85%, 02/08/2000 3,000,000 3,000,000
Multi-County Lease Revenue, 3.85%, 02/10/2000 3,000,000 3,000,000
Multi-County Lease Revenue, 4.00%, 02/10/2000 210,000 210,000
-------------------------------------------------------------------------
Pendleton City Lease
Multi-County Lease Revenue, 3.65%, 02/11/2000 1,500,000 1,500,000
Multi-County Lease Revenue, 3.65%, 02/16/2000 1,000,000 1,000,000
Multi-County Lease Revenue,
3.45%, 03/08/2000 2,000,000 2,000,000
LOUISIANA
Parish of West Baton Rouge
Pollution Control Revenue, 3.90%, 02/16/2000 3,000,000 3,000,000
-------------------------------------------------------------------------
Public Finance Authority 99B, 3.85%, 4,000,000 4,000,000
03/09/2000
-------------------------------------------------------------------------
Public Finance Authority 99B, 3.60%,
04/10/2000 4,000,000 4,000,000
MISSISSIPPI
Claiborne County, Pollution Control Revenue,
3.85%, 04/10/2000 700,000 700,000
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 25
23
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
NEVADA
Las Vegas Valley
Water District, 3.85%, 03/08/2000 $2,000,000 $2,000,000
NEW YORK
Nassau County
Tax Anticipation Note - Series A, 4.85%,
04/28/2000 1,500,000 1,503,338
Tax Anticipation Note - Series C, 4.75%,
12/21/2000 500,000 502,909
OHIO
Air Quality Development, 3.80%, 04/10/2000 3,000,000 3,000,000
PENNSYLVANIA
Philadelphia
Tax and Revenue Anticipation Notes, 4.25%,
06/30/2000 500,000 501,488
SOUTH CAROLINA
Public Service Authority, 3.85%, 02/11/2000 3,000,000 3,000,000
Public Service Authority, 3.85%, 02/16/2000 2,000,000 2,000,000
TEXAS
Calhoun County Navigation Industrial
Development Authority, 3.80%, 02/09/2000 3,000,000 3,000,000
-------------------------------------------------------------------------
Calhoun County Navigation Industrial
Development Authority, 3.70%, 02/17/2000 2,000,000 2,000,000
-------------------------------------------------------------------------
Houston
General Obligation, 3.80%, 03/13/2000 4,000,000 4,000,000
Water and Sewer Revenue, 3.75%, 02/24/2000 3,100,000 3,100,000
Water and Sewer Revenue, 3.85%, 03/06/2000 2,000,000 2,000,000
Municipal Power Agency, 3.60%, 02/09/2000 1,000,000 1,000,000
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 26
ZURICH YIELDWISE MUNICIPAL MONEY FUND PORTFOLIO OF INVESTMENTS, CONTINUED
24
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
Municipal Power Agency, 3.90%, 03/09/2000 $4,000,000 $1,000,000
Municipal Power Agency, 3.90%, 03/23/2000 1,000,000 1,000,000
-------------------------------------------------------------------------
San Antonio
Electric and Gas Revenue, 3.65%, 04/11/2000 2,000,000 2,000,000
-------------------------------------------------------------------------
Tax and Revenue Anticipation Notes, 4.50%,
8/31/2000 4,300,000 4,318,707
UTAH
Intermountain Power Agency, 3.85%, 03/09/2000 3,300,000 3,300,000
VIRGINIA
Virginia Electric and Power Company - Series
1985, 3.75%, 02/10/2000 3,100,000 3,100,000
-------------------------------------------------------------------------
Virginia Electric and Power Company - Series
1987, 3.75%, 04/11/2000 1,000,000 1,000,000
-------------------------------------------------------------------------
Virginia Electric and Power Company, 4.00%,
02/24/2000 2,000,000 2,000,000
-----------------------------------------------------------------------------
TOTAL OTHER SECURITIES
(COST $101,336,442) 101,336,442
-----------------------------------------------------------------------------
TOTAL INVESTMENTS PORTFOLIO -- 100%
(COST $171,271,442)(A) $171,271,442
</TABLE>
Interest rates represent annualized yields to date of maturity, except for
variable rate securities described below.
(a) Cost for federal income tax purposes was $171,271,442.
* Variable rate demand securities are securities whose yields vary with a
designated market index or market rate such as the coupon equivalent of the
Treasury bill rate. These securities are shown at their current rate as of
January 31, 2000, and are payable within five business days.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 27
25
financial statements
STATEMENT OF ASSETS AND LIABILITIES
January 31, 2000 (unaudited)
<TABLE>
<CAPTION>
ASSETS MONEY GOVERNMENT MUNICIPAL
<S> <C> <C> <C>
Investments in securities,
at amortized cost $950,021,228 157,587,056 171,271,442
------------------------------------------------------------------------
Repurchase agreements -- 78,000,000 --
------------------------------------------------------------------------
Cash 9,654,003 2,484,563 --
------------------------------------------------------------------------
Receivable for investments -- -- 200,000
sold
------------------------------------------------------------------------
Interest receivable 3,732,441 857,052 1,054,940
------------------------------------------------------------------------
Receivable for Fund shares 4,220,191 3,110,844 764,480
sold
------------------------------------------------------------------------
Due from adviser -- 99,398 143,854
------------------------------------------------------------------------
Other assets -- -- --
------------------------------------------------------------------------
------------------------------------------------------------------------
TOTAL ASSETS 967,627,863 242,138,913 173,434,716
LIABILITIES
Due to custodian bank -- -- 292,521
------------------------------------------------------------------------
Dividends payable 877,685 220,325 92,659
------------------------------------------------------------------------
Payable for Fund shares 19,049,828 1,596,856 4,114,357
redeemed
------------------------------------------------------------------------
Accrued management fee 481,344 -- --
------------------------------------------------------------------------
Other accrued expenses and 270,310 69,438 28,766
payables
------------------------------------------------------------------------
------------------------------------------------------------------------
TOTAL LIABILITIES 20,679,167 1,886,619 4,528,303
------------------------------------------------------------------------
NET ASSETS AT VALUE $946,948,696 240,252,294 168,906,413
NET ASSET VALUE
Shares outstanding 946,948,696 240,252,294 168,906,413
------------------------------------------------------------------------
Net asset value, offering and
redemption price per share
(Net asset value / outstanding
shares of beneficial interest,
$0.00 par value, unlimited
number of shares authorized) $1.00 1.00 1.00
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 28
ZURICH YIELDWISE FUNDS FINANCIAL STATEMENTS, CONTINUED
26
STATEMENT OF OPERATIONS
Six months ended January 31, 2000 (unaudited)
<TABLE>
<CAPTION>
INVESTMENT INCOME MONEY GOVERNMENT MUNICIPAL
<S> <C> <C> <C>
Interest $26,781,074 6,543,244 2,705,097
-------------------------------------------------------------------
Expenses:
Management fee 1,650,523 581,728 370,587
-------------------------------------------------------------------
Services to shareholders 262,323 42,743 96,730
-------------------------------------------------------------------
Custodian and accounting
fees 11,534 26,896 5,451
-------------------------------------------------------------------
Auditing 25,000 5,399 3,276
-------------------------------------------------------------------
Legal 2,750 5,701 1,500
-------------------------------------------------------------------
Trustees' fees and expenses 19,688 5,698 3,462
-------------------------------------------------------------------
Reports to shareholders 26,598 8,010 2,500
-------------------------------------------------------------------
Registration fees 60,624 101,152 29,444
-------------------------------------------------------------------
Other 185,498 34,063 6,245
-------------------------------------------------------------------
Total expenses, before
expense reductions 2,244,538 811,390 519,195
-------------------------------------------------------------------
Expense reductions (653,588) (692,022) (519,195)
-------------------------------------------------------------------
Total expenses, after
expense reductions 1,590,950 119,368 --
-------------------------------------------------------------------
NET INVESTMENT INCOME 25,190,124 6,423,876 2,705,097
-------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $25,190,124 6,423,876 2,705,097
-------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 29
27
(This page intentionally left blank)
<PAGE> 30
ZURICH YIELDWISE FUNDS FINANCIAL STATEMENTS, CONTINUED
28
STATEMENTS OF CHANGES IN NET ASSETS MONEY
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
JANUARY 31, ENDED
2000 JULY 31,
INCREASE (DECREASE) IN NET ASSETS (UNAUDITED) 1999
<S> <C> <C>
OPERATIONS:
Net investment income $ 25,190,124 51,509,952
-----------------------------------------------------------------------
Distributions to shareholders from net
investment income (25,190,124) (51,509,952)
-----------------------------------------------------------------------
FUND SHARE TRANSACTIONS:
Proceeds from shares sold 727,830,490 1,265,864,367
-----------------------------------------------------------------------
Reinvestment of distributions 24,137,900 49,605,674
-----------------------------------------------------------------------
Cost of shares redeemed (719,407,062) (1,472,810,799)
-----------------------------------------------------------------------
NET INCREASE (DECREASE) FROM FUND SHARE
TRANSACTIONS AND TOTAL INCREASE
(DECREASE) IN NET ASSETS 32,561,328 (157,340,758)
NET ASSETS
Beginning of period 914,387,368 1,071,728,126
-----------------------------------------------------------------------
END OF PERIOD $ 946,948,696 914,387,368
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 31
29
<TABLE>
<CAPTION>
GOVERNMENT MUNICIPAL
<S> <C> <C> <C>
SIX MONTHS SIX MONTHS
ENDED DECEMBER 1, ENDED DECEMBER 1,
JANUARY 31, 1998 (a) TO JANUARY 31, 1998 (a) TO
2000 JULY 31, 2000 JULY 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
6,423,876 3,803,698 2,705,097 685,537
- -------------------------------------------------------------
(6,423,876) (3,803,698) (2,705,097) (685,537)
- -------------------------------------------------------------
197,525,151 343,648,626 260,844,184 105,204,719
- -------------------------------------------------------------
6,142,838 3,475,455 2,361,398 619,244
- -------------------------------------------------------------
(174,586,463) (135,953,313) (175,033,321) (25,089,811)
- -------------------------------------------------------------
29,081,526 211,170,768 88,172,261 80,734,152
211,170,768 -- 80,734,152 --
- -------------------------------------------------------------
240,252,294 211,170,768 168,906,413 80,734,152
</TABLE>
(a) Commencement of operations.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
<PAGE> 32
30
financial highlights
The following tables include selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
ZURICH YIELDWISE MONEY FUND
<TABLE>
<CAPTION>
APRIL 17,
SIX MONTHS 1997
ENDED YEAR ENDED (a)
JANUARY 31, JULY 31, TO
2000 --------------------- JULY 31,
(UNAUDITED) 1999 1998 1997
<S> <C> <C> <C> <C>
Net asset value,
beginning of period $1.00 1.00 1.00 1.00
--------------------------------------------------------------------------
Net investment income 0.03 0.05 0.06 0.02
--------------------------------------------------------------------------
Less distributions from
net investment income (0.03) (0.05) (0.06) (0.02)
--------------------------------------------------------------------------
Net asset value, end of
period $1.00 1.00 1.00 1.00
-------------------------------------------------------------------------
TOTAL RETURN (%)(b) 2.76** 5.03 5.81 1.69**
<CAPTION>
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
<S> <C> <C> <C> <C>
Net assets, end of
period ($ thousands) 946,949 914,387 1,071,728 245,064
--------------------------------------------------------------------------
Ratio of expenses before
expense reductions (%) 0.48* 0.45 0.44 0.60*
--------------------------------------------------------------------------
Ratio of expenses after
expense reductions (%) 0.34* 0.34 0.07 --
--------------------------------------------------------------------------
Ratio of net investment
income (%) 5.40* 4.92 5.63 5.66*
</TABLE>
(a) Commencement of operations.
(b) Total returns would have been lower had certain expenses not been reduced.
* Annualized.
** Not annualized.
<PAGE> 33
31
ZURICH YIELDWISE GOVERNMENT FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED DECEMBER 1,
JANUARY 31, 1998 (a) TO
2000 JULY 31,
(UNAUDITED) 1999
<S> <C> <C>
Net asset value, beginning of period $1.00 1.00
---------------------------------------------------------------------
Net investment income 0.03 0.03
---------------------------------------------------------------------
Less distributions from net investment
income (0.03) (0.03)
---------------------------------------------------------------------
Net asset value, end of period $1.00 1.00
---------------------------------------------------------------------
TOTAL RETURN (%) (b) 2.75%** 3.30**
<CAPTION>
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
<S> <C> <C>
Net assets, end of period ($ thousands) 240,252 211,171
--------------------------------------------------------------------
Ratio of expenses before expense
reductions (%) 0.68* 0.61*
--------------------------------------------------------------------
Ratio of expenses after expense
reductions (%) 0.10* 0.05*
--------------------------------------------------------------------
Ratio of net investment income (%) 5.40* 4.92*
</TABLE>
(a) Commencement of operations.
(b) Total returns would have been lower had certain expenses not been reduced.
* Annualized.
** Not annualized.
<PAGE> 34
FINANCIAL HIGHLIGHTS, CONTINUED
32
ZURICH YIELDWISE MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED DECEMBER 1,
JANUARY 31, 1998 (a) TO
2000 JULY 31,
(UNAUDITED) 1999
<S> <C> <C>
Net asset value, beginning of period $1.00 1.00
---------------------------------------------------------------------
Net investment income 0.02 0.02
---------------------------------------------------------------------
Less distributions from net investment
income (0.02) (0.02)
---------------------------------------------------------------------
Net asset value, end of period $1.00 1.00
---------------------------------------------------------------------
TOTAL RETURN (%) (b) 1.83%** 2.09**
<CAPTION>
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
<S> <C> <C>
Net assets, end of period ($ thousands) 168,906 80,734
---------------------------------------------------------------------
Ratio of expenses before expense
reductions (%) 0.70* 0.88*
---------------------------------------------------------------------
Ratio of expenses after expense
reductions (%) -- --
---------------------------------------------------------------------
Ratio of net investment income (%) 3.66* 3.25*
</TABLE>
(a) Commencement of operations.
(b) Total returns would have been lower had certain expenses not been reduced.
* Annualized.
** Not annualized.
<PAGE> 35
33
notes to
financial statements
1. SIGNIFICANT ACCOUNTING POLICIES
Zurich YieldWise Funds (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end diversified management
investment company organized as a Massachusetts business trust. The Trust
currently offers three investment funds ("Funds"). Zurich YieldWise Money Fund
invests primarily in short-term high quality obligations of major banks and
corporations. Zurich YieldWise Government Money Fund invests exclusively in
obligations issued or guaranteed by the U.S. Government or its agencies and
repurchase agreements thereon. Zurich YieldWise Municipal Money Fund invests in
short-term high quality municipal securities.
The Funds' financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management estimates.
The policies described below are followed consistently by the Funds in the
preparation of its financial statements.
SECURITY VALUATION. The Funds value all portfolio securities utilizing the
amortized cost method permitted in accordance with Rule 2a-7 under the 1940 Act
and pursuant to which the Funds must adhere to certain conditions. Under this
method, which does not take into account unrealized gains or losses on
securities, an instrument is initially valued at its cost and thereafter assumes
a constant accretion/amortization to maturity of any discount/premium.
REPURCHASE AGREEMENTS. The Funds may enter into repurchase agreements with
certain banks and broker/dealers whereby the Funds, through their custodian or
sub-custodian bank, receive delivery of the underlying securities, the amount of
which at the time of purchase and each subsequent business day is required to be
maintained at such a level that the market value is equal to at least the
principal amount of the repurchase price plus accrued interest.
FEDERAL INCOME TAXES. Each Fund's policy is to comply with the requirements of
the Internal Revenue Code, as amended, which are applicable to regulated
investment companies and to distribute all of its taxable and tax-exempt income
to its shareholders. Accordingly, the Funds paid no federal income taxes and no
federal income tax provision was required.
<PAGE> 36
34
DISTRIBUTION OF INCOME AND GAINS. All of the net investment income of the Funds
are declared as a daily dividend and is distributed to shareholders monthly. Net
investment income includes all realized gains (losses) on portfolio securities.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME. Investment transactions are
accounted for on the trade date. Interest income is recorded on the accrual
basis. All discounts and premiums are accreted/amortized for both tax and
financial reporting purposes.
EXPENSES. Expenses arising in connection with a specific Fund are allocated to
that Fund. Other Trust expenses are allocated between the Funds in proportion to
their relative net assets.
2. TRANSACTIONS WITH AFFILIATES
MANAGEMENT AGREEMENT. Each Fund has a management agreement with Scudder Kemper
Investments, Inc. ("Scudder Kemper") and pays a monthly investment management
fee of 1/12 of the 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 $800
million. During the six months ended January 31, 2000, the Funds incurred the
following management fees:
<TABLE>
<CAPTION>
MANAGEMENT FEE FEES WAIVED BY EFFECTIVE
FUND IMPOSED ($) SCUDDER KEMPER ($) RATE (%)
- ---- -------------- ------------------ ---------
<S> <C> <C> <C>
Zurich YieldWise Money Fund 1,000,390 650,133 .21
Zurich YieldWise Government
Money Fund -- 581,728 --
Zurich YieldWise Municipal
Money Fund -- 370,587 --
</TABLE>
SHAREHOLDER SERVICES AGREEMENT. Pursuant to a services agreement with the Funds'
transfer agent, Kemper Service Company ("KSvC") is the shareholder service agent
of the Trust. For the six months ended January 31, 2000, KSvC received
shareholder services fees for the Zurich YieldWise Money Fund, the Zurich
YieldWise Government Money Fund and the Zurich YieldWise Municipal Money Fund of
$277,047, $42,743, and $61,584, respectively, of which $59,206, $5,956, and
$42,712, respectively, is unpaid at January 31, 2000.
<PAGE> 37
35
OFFICERS AND TRUSTEES. Certain officers or trustees of the Trust are also
officers or directors of Scudder Kemper. During the six months ended January 31,
2000, the Trust made no payments to its officers and incurred trustees' fees of
$28,848 to independent trustees.
EXPENSE ABSORPTION. Scudder Kemper has agreed to temporarily waive its
management fee and reimburse or pay operating expenses of each fund as follows:
for Zurich YieldWise Money Fund, to the extent necessary to maintain the Fund's
total operating expenses at no more than .45% until January 1, 2000, thereafter,
to the extent necessary to maintain the Fund's total operating expenses at no
more than .38% until November 30, 2000; for Zurich YieldWise Government Money
Fund, to the extent necessary to maintain the Fund's total operating expenses at
no more than .10% through at least June 1, 1999, thereafter, to the extent
necessary to maintain the Fund's total operating expenses at no more than .34%
until June 1, 2000 and .37% until November 30, 2000; for Zurich YieldWise
Municipal Money Fund, 100% of expenses were waived and absorbed until June 1,
1999, thereafter, to the extent necessary to maintain the Fund's total operating
expenses at no more than .30% until 11/30/2000. For the six months ended January
31, 2000, Scudder Kemper waived and absorbed expenses of $1,845,700.
3. EXPENSE OFF-SET ARRANGEMENTS
Each Fund has entered into an arrangement with its custodian and transfer agent
whereby credits realized as a result of uninvested cash balances were used to
reduce a portion of the Fund's expenses. During the six months ended January 31,
2000, Zurich YieldWise Money Fund's, Zurich YieldWise Government Money Fund's
and Zurich YieldWise Municipal Money Fund's custodian and transfer agent fees
were reduced by $1,075 and $1,342, $3,112 and $2,380, and $9,554 and $1,642,
respectively.
4. LINE OF CREDIT
The Funds and several Kemper funds (the "Participants") share in a $750 million
revolving credit facility for temporary or emergency purposes, including the
meeting of redemption requests that otherwise might require the untimely
disposition of securities. The Participants are charged an annual commitment fee
which is allocated pro rata among each of the Participants. Interest is
calculated based on the market rates at the time of the borrowing. Each Fund may
borrow up to a maximum of 33 percent of its net assets under the agreement.
<PAGE> 38
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<PAGE> 39
[SCREEN]
<PAGE> 40
TRUSTEES AND OFFICERS
TRUSTEES OFFICERS
JOHN W. BALLANTINE MARK S. CASADY JOHN R. HEBBLE
Trustee President Treasurer
LEWIS A. BURNHAM PHILIP. J. COLLORA MAUREEN E. KANE
Trustee Vice President and Assistant Secretary
Secretary
LINDA C. COUGHLIN ANN M. McCREARY CAROLINE PEARSON
Trustee Vice President Assistant Secretary
DONALD L. DUNAWAY ROBERT C. PECK, JR. BRENDA LYONS
Trustee Vice President Assistant Treasurer
ROBERT B. HOFFMAN KATHRYN L. QUIRK
Trustee Vice President
DONALD R. JONES FRANK J. RACHWALSKI, JR.
Trustee Vice President
THOMAS W. LITTAUER LINDA J. WONDRACK
Trustee and Vice President
Vice President
SHIRLEY D. PETERSON
Trustee
WILLIAM P. SOMMERS
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
TRANSFER AGENT INVESTORS FIDUCIARY TRUST COMPANY
801 Pennsylvania
Kansas City, MO 64105
CUSTODIAN STATE STREET BANK AND TRUST COMPANY
225 Franklin Street
Boston, MA 02109
INDEPENDENT ERNST & YOUNG LLP
AUDITORS 233 South Wacker Drive
Chicago, IL 60606
This report must be preceded or
accompanied by a Zurich YieldWise Funds prospectus, Kemper Distributors Inc.
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ZYF-3 (3/31/00) 1108810 Telephone: 1-888-ZURICH-1-(987-4241)
