<PAGE> PAGE 1
000 B000000 07/31/94
000 C000000 0000310030
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 CASH EQUIVALENT FUND
001 B000000 811-2899
001 C000000 3127811121
002 A000000 120 SOUTH LASALLE STREET
002 B000000 CHICAGO
002 C000000 IL
002 D010000 60603
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 3
007 C010100 1
007 C020100 MONEY MARKET PORTFOLIO
007 C030100 N
007 C010200 2
007 C020200 GOVERNMENT SECURITIES PORTFOLIO
007 C030200 N
007 C010300 3
007 C020300 TAX EXEMPT PORTFOLIO
007 C030300 N
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A00AA01 KEMPER FINANCIAL SERVICES, INC.
008 B00AA01 A
008 C00AA01 801-6634
008 D01AA01 CHICAGO
008 D02AA01 IL
008 D03AA01 60603
010 A00AA01 KEMPER FINANCIAL SERVICES, INC.
010 B00AA01 801-6634
010 C01AA01 CHICAGO
010 C02AA01 IL
010 C03AA01 60603
011 A00AA01 KEMPER FINANCIAL SERVICES, INC.
011 B00AA01 8-15830
<PAGE> PAGE 2
011 C01AA01 CHICAGO
011 C02AA01 IL
011 C03AA01 60603
012 A00AA01 KEMPER SERVICE COMPANY
012 B00AA01 84-1713
012 C01AA01 KANSAS CITY
012 C02AA01 MO
012 C03AA01 64105
013 A00AA01 ERNST & YOUNG LLP
013 B01AA01 CHICAGO
013 B02AA01 IL
013 B03AA01 60606
014 A00AA01 KEMPER FINANCIAL SERVICES, INC.
014 B00AA01 8-15830
014 A00AA02 KEMPER SECURITIES, INC.
014 B00AA02 8-37180
015 A00AA01 INVESTORS FIDUCIARY TRUST COMPANY
015 B00AA01 C
015 C01AA01 KANSAS CITY
015 C02AA01 MO
015 C03AA01 64105
015 E01AA01 X
015 A00AA02 UNITED MISSOURI BANK, N.A.
015 B00AA02 S
015 C01AA02 KANSAS CITY
015 C02AA02 MO
015 C03AA02 64106
015 E01AA02 X
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 42
019 C00AA00 KEMPERFNDS
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 BEAR, STEARNS & CO. INC.
022 B000001 13-3299429
022 C000001 15093790
022 D000001 15207441
022 A000002 KIDDER, PEABODY & CO. INCORPORATED
022 B000002 13-5650440
022 C000002 16730000
022 D000002 15000
<PAGE> PAGE 3
022 A000003 PRUDENTIAL SECURITIES INCORPORATED
022 B000003 22-2347336
022 C000003 15094005
022 D000003 283125
022 A000004 GOLDMAN, SACHS & CO.
022 B000004 13-5108880
022 C000004 11838471
022 D000004 1461676
022 A000005 LEHMAN BROTHERS
022 B000005 13-2518466
022 C000005 6169391
022 D000005 2496677
022 A000006 NOMURA SECURITIES INTERNATIONAL, INC.
022 B000006 13-2642206
022 C000006 7507422
022 D000006 24994
022 A000007 THE NIKKO SECURITIES CO. INTERNATIONAL, INC.
022 B000007 94-1302123
022 C000007 5491816
022 D000007 557000
022 A000008 MERRILL LYNCH, PIERCE, FENNER & SMITH INCORP
022 B000008 13-5674085
022 C000008 4683976
022 D000008 1010845
022 A000009 SALOMON BROTHERS INC.
022 B000009 13-3082694
022 C000009 4664344
022 D000009 0
022 A000010 THE FIRST BOSTON CORPORATION
022 B000010 13-5659485
022 C000010 2394645
022 D000010 605140
023 C000000 96984603
023 D000000 22922096
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
029 00AA00 N
030 A00AA00 0
030 B00AA00 0.00
030 C00AA00 0.00
031 A00AA00 0
031 B00AA00 0
032 00AA00 0
<PAGE> PAGE 4
033 00AA00 0
034 00AA00 N
035 00AA00 0
036 B00AA00 0
037 00AA00 N
038 00AA00 0
039 00AA00 N
040 00AA00 Y
041 00AA00 Y
045 00AA00 Y
046 00AA00 N
047 00AA00 Y
048 00AA00 0.000
048 A01AA00 500000
048 A02AA00 0.220
048 B01AA00 500000
048 B02AA00 0.200
048 C01AA00 1000000
048 C02AA00 0.175
048 D01AA00 1000000
048 D02AA00 0.160
048 E01AA00 0
048 E02AA00 0.000
048 F01AA00 0
048 F02AA00 0.000
048 G01AA00 0
048 G02AA00 0.000
048 H01AA00 0
048 H02AA00 0.000
048 I01AA00 0
048 I02AA00 0.000
048 J01AA00 0
048 J02AA00 0.000
048 K01AA00 3000000
048 K02AA00 0.150
049 00AA00 N
050 00AA00 N
051 00AA00 N
052 00AA00 N
053 A00AA00 N
054 A00AA00 Y
054 B00AA00 Y
054 C00AA00 Y
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 N
054 H00AA00 Y
054 I00AA00 N
054 J00AA00 Y
054 K00AA00 N
<PAGE> PAGE 5
054 L00AA00 N
054 M00AA00 Y
054 N00AA00 N
054 O00AA00 N
058 A00AA00 N
059 00AA00 Y
060 A00AA00 Y
060 B00AA00 Y
061 00AA00 1000
066 A00AA00 N
067 00AA00 N
068 A00AA00 N
068 B00AA00 N
069 00AA00 N
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 N
077 Q020000 N
077 Q030000 N
078 000000 N
080 A00AA00 ICI MUTUAL INSURANCE COMPANY
080 C00AA00 60000
081 A00AA00 Y
081 B00AA00 62
082 A00AA00 N
082 B00AA00 0
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
<PAGE> PAGE 6
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
024 000100 Y
025 A000101 BEAR STEARNS COMPANIES INC.
025 B000101 13-3299429
025 C000101 D
025 D000101 89998
025 A000102 CS FIRST BOSTON, INC.
025 B000102 13-5659485
025 C000102 D
025 D000102 100000
025 A000103 GOLDMAN, SACHS & CO.
025 B000103 13-5108880
025 C000103 D
025 D000103 100000
025 A000104 LEHMAN BROTHERS HOLDINGS INC.
025 B000104 13-3216325
025 C000104 D
025 D000104 90000
025 A000105 MERRILL LYNCH & CO., INC.
025 B000105 13-2973073
025 C000105 D
025 D000105 74994
025 A000106 NOMURA HOLDING AMERICA INC.
025 B000106 13-3518229
025 C000106 D
025 D000106 24878
025 A000107 SALOMON INC
025 B000107 13-3082694
025 C000107 D
025 D000107 104954
025 D000108 0
028 A010100 997170
028 A020100 6766
028 A030100 0
028 A040100 1054417
028 B010100 1079130
028 B020100 6754
028 B030100 0
028 B040100 1104154
028 C010100 1096377
028 C020100 8284
028 C030100 0
028 C040100 955972
028 D010100 782439
028 D020100 9200
<PAGE> PAGE 7
028 D030100 0
028 D040100 862318
028 E010100 777465
028 E020100 9681
028 E030100 0
028 E040100 880898
028 F010100 741180
028 F020100 10014
028 F030100 0
028 F040100 746471
028 G010100 5473761
028 G020100 50699
028 G030100 0
028 G040100 5604230
028 H000100 0
042 A000100 0
042 B000100 0
042 C000100 0
042 D000100 0
042 E000100 0
042 F000100 0
042 G000100 0
042 H000100 100
043 000100 13430
044 000100 14199
055 A000100 N
055 B000100 N
056 000100 Y
057 000100 N
062 A000100 Y
062 B000100 0.0
062 C000100 0.0
062 D000100 18.1
062 E000100 0.0
062 F000100 11.0
062 G000100 1.5
062 H000100 0.0
062 I000100 69.2
062 J000100 0.0
062 K000100 0.0
062 L000100 0.0
062 M000100 0.0
062 N000100 0.0
062 O000100 0.0
062 P000100 0.0
062 Q000100 0.0
062 R000100 0.0
063 A000100 35
063 B000100 0.0
064 A000100 Y
064 B000100 N
<PAGE> PAGE 8
070 A010100 Y
070 A020100 Y
070 B010100 N
070 B020100 N
070 C010100 N
070 C020100 N
070 D010100 N
070 D020100 N
070 E010100 N
070 E020100 N
070 F010100 N
070 F020100 N
070 G010100 N
070 G020100 N
070 H010100 N
070 H020100 N
070 I010100 N
070 I020100 N
070 J010100 Y
070 J020100 Y
070 K010100 N
070 K020100 N
070 L010100 Y
070 L020100 Y
070 M010100 N
070 M020100 N
070 N010100 N
070 N020100 N
070 O010100 Y
070 O020100 N
070 P010100 N
070 P020100 N
070 Q010100 N
070 Q020100 N
070 R010100 N
070 R020100 N
071 A000100 0
071 B000100 0
071 C000100 0
071 D000100 0
072 A000100 12
072 B000100 129360
072 C000100 0
072 D000100 0
072 E000100 0
072 F000100 5895
072 G000100 13430
072 H000100 0
072 I000100 0
072 J000100 10972
072 K000100 0
<PAGE> PAGE 9
072 L000100 260
072 M000100 31
072 N000100 78
072 O000100 0
072 P000100 0
072 Q000100 0
072 R000100 47
072 S000100 28
072 T000100 0
072 U000100 0
072 V000100 0
072 W000100 498
072 X000100 31239
072 Y000100 0
072 Z000100 98121
072AA000100 0
072BB000100 0
072CC010100 0
072CC020100 0
072DD010100 98121
072DD020100 0
072EE000100 0
073 A010100 0.0278
073 A020100 0.0000
073 B000100 0.0000
073 C000100 0.0000
074 A000100 5919
074 B000100 612450
074 C000100 2769568
074 D000100 0
074 E000100 0
074 F000100 0
074 G000100 0
074 H000100 0
074 I000100 0
074 J000100 0
074 K000100 0
074 L000100 10430
074 M000100 0
074 N000100 3398367
074 O000100 0
074 P000100 2603
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 8519
074 S000100 0
074 T000100 3387245
074 U010100 3387245
074 U020100 0
<PAGE> PAGE 10
074 V010100 1.00
074 V020100 0.00
074 W000100 0.9997
074 X000100 506376
074 Y000100 0
075 A000100 3534161
075 B000100 0
076 000100 0.00
024 000200 N
025 D000201 0
025 D000202 0
025 D000203 0
025 D000204 0
025 D000205 0
025 D000206 0
025 D000207 0
025 D000208 0
028 A010200 470303
028 A020200 3369
028 A030200 0
028 A040200 466629
028 B010200 552750
028 B020200 3453
028 B030200 0
028 B040200 579795
028 C010200 495949
028 C020200 3984
028 C030200 0
028 C040200 486413
028 D010200 403199
028 D020200 4247
028 D030200 0
028 D040200 470197
028 E010200 465544
028 E020200 4505
028 E030200 0
028 E040200 551259
028 F010200 374911
028 F020200 4472
028 F030200 0
028 F040200 398097
028 G010200 2762656
028 G020200 24030
028 G030200 0
028 G040200 2952390
028 H000200 0
042 A000200 0
042 B000200 0
042 C000200 0
042 D000200 0
042 E000200 0
<PAGE> PAGE 11
042 F000200 0
042 G000200 0
042 H000200 100
043 000200 8053
044 000200 8594
055 A000200 Y
055 B000200 N
056 000200 Y
057 000200 N
062 A000200 Y
062 B000200 1.8
062 C000200 29.7
062 D000200 68.5
062 E000200 0.0
062 F000200 0.0
062 G000200 0.0
062 H000200 0.0
062 I000200 0.0
062 J000200 0.0
062 K000200 0.0
062 L000200 0.0
062 M000200 0.0
062 N000200 0.0
062 O000200 0.0
062 P000200 0.0
062 Q000200 0.0
062 R000200 0.0
063 A000200 28
063 B000200 0.0
064 A000200 Y
064 B000200 N
070 A010200 Y
070 A020200 Y
070 B010200 N
070 B020200 N
070 C010200 N
070 C020200 N
070 D010200 N
070 D020200 N
070 E010200 N
070 E020200 N
070 F010200 N
070 F020200 N
070 G010200 N
070 G020200 N
070 H010200 N
070 H020200 N
070 I010200 N
070 I020200 N
070 J010200 Y
070 J020200 Y
<PAGE> PAGE 12
070 K010200 N
070 K020200 N
070 L010200 N
070 L020200 N
070 M010200 N
070 M020200 N
070 N010200 N
070 N020200 N
070 O010200 Y
070 O020200 N
070 P010200 N
070 P020200 N
070 Q010200 N
070 Q020200 N
070 R010200 N
070 R020200 N
071 A000200 0
071 B000200 0
071 C000200 0
071 D000200 0
072 A000200 12
072 B000200 74702
072 C000200 0
072 D000200 0
072 E000200 0
072 F000200 3535
072 G000200 8053
072 H000200 0
072 I000200 0
072 J000200 4932
072 K000200 0
072 L000200 155
072 M000200 23
072 N000200 70
072 O000200 0
072 P000200 0
072 Q000200 0
072 R000200 37
072 S000200 21
072 T000200 0
072 U000200 0
072 V000200 0
072 W000200 264
072 X000200 17090
072 Y000200 0
072 Z000200 57612
072AA000200 0
072BB000200 0
072CC010200 0
072CC020200 0
072DD010200 57612
<PAGE> PAGE 13
072DD020200 0
072EE000200 0
073 A010200 0.0279
073 A020200 0.0000
073 B000200 0.0000
073 C000200 0.0000
074 A000200 1784
074 B000200 1053962
074 C000200 483912
074 D000200 0
074 E000200 0
074 F000200 0
074 G000200 0
074 H000200 0
074 I000200 0
074 J000200 0
074 K000200 0
074 L000200 4596
074 M000200 0
074 N000200 1544254
074 O000200 0
074 P000200 1072
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 5171
074 S000200 0
074 T000200 1538011
074 U010200 1538011
074 U020200 0
074 V010200 1.00
074 V020200 0.00
074 W000200 0.9996
074 X000200 170741
074 Y000200 0
075 A000200 2119128
075 B000200 0
076 000200 0.00
024 000300 N
025 D000301 0
025 D000302 0
025 D000303 0
025 D000304 0
025 D000305 0
025 D000306 0
025 D000307 0
025 D000308 0
028 A010300 287663
028 A020300 1901
028 A030300 0
<PAGE> PAGE 14
028 A040300 293583
028 B010300 317105
028 B020300 1952
028 B030300 0
028 B040300 338944
028 C010300 294372
028 C020300 2040
028 C030300 0
028 C040300 355601
028 D010300 247365
028 D020300 2260
028 D030300 0
028 D040300 261121
028 E010300 265902
028 E020300 2168
028 E030300 0
028 E040300 317530
028 F010300 376438
028 F020300 2009
028 F030300 0
028 F040300 389228
028 G010300 1788845
028 G020300 12330
028 G030300 0
028 G040300 1956007
028 H000300 0
042 A000300 0
042 B000300 0
042 C000300 0
042 D000300 0
042 E000300 0
042 F000300 0
042 G000300 0
042 H000300 100
043 000300 4354
044 000300 4422
055 A000300 Y
055 B000300 N
056 000300 Y
057 000300 N
062 A000300 Y
062 B000300 0.0
062 C000300 0.0
062 D000300 0.0
062 E000300 101.1
062 F000300 0.0
062 G000300 0.0
062 H000300 0.0
062 I000300 0.0
062 J000300 0.0
062 K000300 0.0
<PAGE> PAGE 15
062 L000300 0.0
062 M000300 0.0
062 N000300 0.0
062 O000300 0.0
062 P000300 0.0
062 Q000300 0.0
062 R000300 0.0
063 A000300 42
063 B000300 0.0
064 A000300 Y
064 B000300 N
070 A010300 Y
070 A020300 N
070 B010300 N
070 B020300 N
070 C010300 N
070 C020300 N
070 D010300 N
070 D020300 N
070 E010300 N
070 E020300 N
070 F010300 N
070 F020300 N
070 G010300 N
070 G020300 N
070 H010300 N
070 H020300 N
070 I010300 N
070 I020300 N
070 J010300 Y
070 J020300 Y
070 K010300 N
070 K020300 N
070 L010300 Y
070 L020300 N
070 M010300 N
070 M020300 N
070 N010300 N
070 N020300 N
070 O010300 Y
070 O020300 N
070 P010300 N
070 P020300 N
070 Q010300 N
070 Q020300 N
070 R010300 N
070 R020300 N
071 A000300 0
071 B000300 0
071 C000300 0
071 D000300 0
<PAGE> PAGE 16
072 A000300 12
072 B000300 35591
072 C000300 0
072 D000300 0
072 E000300 0
072 F000300 2659
072 G000300 4354
072 H000300 0
072 I000300 0
072 J000300 1525
072 K000300 0
072 L000300 94
072 M000300 13
072 N000300 57
072 O000300 0
072 P000300 0
072 Q000300 0
072 R000300 17
072 S000300 12
072 T000300 0
072 U000300 0
072 V000300 0
072 W000300 188
072 X000300 8919
072 Y000300 0
072 Z000300 26672
072AA000300 0
072BB000300 0
072CC010300 0
072CC020300 0
072DD010300 26672
072DD020300 0
072EE000300 0
073 A010300 0.0203
073 A020300 0.0000
073 B000300 0.0000
073 C000300 0.0000
074 A000300 0
074 B000300 0
074 C000300 1149766
074 D000300 0
074 E000300 0
074 F000300 0
074 G000300 0
074 H000300 0
074 I000300 0
074 J000300 0
074 K000300 0
074 L000300 5474
074 M000300 0
074 N000300 1155240
<PAGE> PAGE 17
074 O000300 15106
074 P000300 673
074 Q000300 0
074 R010300 0
074 R020300 0
074 R030300 0
074 R040300 2560
074 S000300 0
074 T000300 1136901
074 U010300 1136901
074 U020300 0
074 V010300 1.00
074 V020300 0.00
074 W000300 0.9998
074 X000300 54405
074 Y000300 0
075 A000300 1319261
075 B000300 0
076 000300 0.00
SIGNATURE PHILIP COLLORA
TITLE VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> MONEY MARKET PORTFOLIO
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUL-31-1994
<PERIOD-END> JUL-31-1994
<INVESTMENTS-AT-COST> 3,382,018
<INVESTMENTS-AT-VALUE> 3,382,018
<RECEIVABLES> 10,430
<ASSETS-OTHER> 5,919
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,398,367
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 11,122
<TOTAL-LIABILITIES> 11,122
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,387,245
<SHARES-COMMON-STOCK> 3,387,245
<SHARES-COMMON-PRIOR> 3,616,636
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 3,387,245
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 129,360
<OTHER-INCOME> 0
<EXPENSES-NET> 31,239
<NET-INVESTMENT-INCOME> 98,121
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 98,121
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11,689,169
<NUMBER-OF-SHARES-REDEEMED> 12,013,575
<SHARES-REINVESTED> 95,015
<NET-CHANGE-IN-ASSETS> (229,391)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5,895
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 31,239
<AVERAGE-NET-ASSETS> 3,534,161
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .028
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .028
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .009
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> GOVERNMENT SECURITIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUL-31-1994
<PERIOD-END> JUL-31-1994
<INVESTMENTS-AT-COST> 1537874
<INVESTMENTS-AT-VALUE> 1537874
<RECEIVABLES> 4596
<ASSETS-OTHER> 1784
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1544254
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6243
<TOTAL-LIABILITIES> 6243
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1538011
<SHARES-COMMON-STOCK> 1538011
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 1538011
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 74702
<OTHER-INCOME> 0
<EXPENSES-NET> 17090
<NET-INVESTMENT-INCOME> 57612
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 57612
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7760200
<NUMBER-OF-SHARES-REDEEMED> 9102306
<SHARES-REINVESTED> 54760
<NET-CHANGE-IN-ASSETS> (1287346)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3535
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 17090
<AVERAGE-NET-ASSETS> 2119128
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .028
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .028
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .008
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> TAX-EXEMPT PORTFOLIO
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUL-31-1994
<PERIOD-END> JUL-31-1994
<INVESTMENTS-AT-COST> 1149766
<INVESTMENTS-AT-VALUE> 1149766
<RECEIVABLES> 5474
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1155240
<PAYABLE-FOR-SECURITIES> 15106
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3233
<TOTAL-LIABILITIES> 18339
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1136901
<SHARES-COMMON-STOCK> 1136901
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 1136901
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 35591
<OTHER-INCOME> 0
<EXPENSES-NET> 8919
<NET-INVESTMENT-INCOME> 26672
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 26672
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4197655
<NUMBER-OF-SHARES-REDEEMED> 4504169
<SHARES-REINVESTED> 26108
<NET-CHANGE-IN-ASSETS> (280406)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2659
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 8919
<AVERAGE-NET-ASSETS> 1319261
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .020
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .020
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .007
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
SUPPLEMENTARY REPORT OF INDEPENDENT AUDITORS
Board of Trustees
Cash Equivalent Fund
In planning and performing our audit of the financial statements of
the Money Market Portfolio, the Government Securities Portfolio and
the Tax-Exempt Portfolio, comprising the Cash Equivalent Fund for the
year ended July 31, 1994, we considered its internal control
structure, including procedures for safeguarding securities, in order
to determine our auditing procedures for the purpose of expressing our
opinion on the financial statements and to comply with the
requirements of Form N-SAR, not to provide assurance on the internal
control structure.
The management of Cash Equivalent Fund is responsible for establishing
and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgements by management are required to
assess the expected benefits and related costs of internal control
structure policies and procedures. Two of the objectives of an
internal control structure are to provide management with reasonable,
but not absolute, assurance that assets are safeguarded against loss
from unauthorized use or disposition and that transactions are
executed in accordance with management's authorization and recorded
properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure,
errors or irregularities may occur and not be detected. Also,
projection of any evaluation of the structure to future periods is
subject to the risk that it may become inadequate because of changes
in conditions or that the effectiveness of the design and operation
may deteriorate.
Our consideration of the internal control structure would not
necessarily disclose all matters in the internal control structure
that might be material weaknesses under standards established by the
American Institute of Certified public Accountants. A material
weakness is a condition in which the design or operation of the
specific internal control structure elements does not reduce to a
relatively low level the risk that errors or irregularities in amounts
that would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions.
However, we noted no matters involving the internal control structure,
including procedures for safeguarding securities, that we consider to
be material weaknesses as defined above as of July 31, 1994.
This report is intended solely for the information and use of
management and the Securities and Exchange Commission.
ERNST & YOUNG LLP
Chicago, Illinois
August 22, 1994
