<PAGE>
| Dresdner RCM
| Capital Funds
June 30, 1998 | Semi-Annual Report
-------------------------
[LOGO] Dresdner RCM Global Funds
-------------------------
<PAGE>
August 21, 1998
DEAR SHAREHOLDERS:
Enclosed is the Dresdner RCM Capital Funds (the "Funds") Semi-Annual
Shareholder Report for the six months ended June 30, 1998. Inside, you'll
find an overview of the economic and market conditions that influenced stock
prices during that time. Following this overview are reports from managers of
the individual Funds that describe the types of investments that Dresdner RCM
Global Investors LLC ("Dresdner RCM"), the Funds' investment manager, made in
this environment. Included in each report is a summary of Fund performance
and a list of Fund holdings at the end of the reporting period.
In the first half of 1998, U.S. stocks continued to break new highs,
buoyed by strong demand from investors at home and abroad. Stocks in Europe
also advanced, as earnings expectations improved. Stocks in Japan and the
emerging markets moved lower during this time. Although the economies of Asia
seemed to stabilize in the first months of the year, it was soon apparent
that the problems there, which contributed to a recession in Japan, were
deeper than investors first realized. As stocks in Asia's emerging markets
responded negatively to these conditions, investors fled stocks in other
emerging markets as well.
Throughout this time, Dresdner RCM maintained its consistent,
disciplined "bottom-up" investment strategy. This helped identify attractive
values in markets that had become increasingly overpriced--as well as
opportunities in markets with weaker valuations.
In choosing stocks for the individual Funds, we draw on the research of
more than 175 investment professionals, using teams of analysts--many of whom
have had professional industry experience in the sectors they follow. We also
investigate company fundamentals through Grassroots Research, our proprietary
research organization. From a network of more than 37,000 industry contacts
in 50 countries, this organization gathers information on local market and
industry conditions. To this research, our staff economists add assessments
of regional and global trends.
We use a host of unique research tools to give each investment idea a
thorough reality check. This process provides portfolio managers with a
continuous flow of industry and company information and helps them compare
their ideas with those of other managers. Through a proprietary popularity
measurement system, we also monitor the opinions of sell-side professionals.
The companies we select have solid potential for sustained earnings
growth due to unique market niches, proprietary products and services, and
outstanding research and development capabilities. We make sure that the
interests of company managers are aligned with those of their shareholders,
and that the companies demonstrate well-capitalized balance sheets and sound
accounting principles. From the firms that meet these criteria, we choose
those whose stocks have attractive risk-adjusted valuations versus others in
their sector.
We believe this approach has served the Funds well in the first half of
1998. Thank you for your continued support.
Sincerely,
/s/ DeWitt Bowman
DeWitt Bowman
Chairman of the Board
<PAGE>
Economic and Market Overview
World stock prices advanced further in the first half of 1998. During
this time, strong gains in the United States and Europe far outpaced declines
in Asia and other emerging markets. Prices remained volatile, however, as
stock investors interpreted conflicting signals for economic growth and
inflation.
In the U.S., anticipated growth in corporate earnings and positive
economic fundamentals helped stock prices reach new highs. Despite concerns
that economic problems in Asia would trim U.S. exports, stock prices
continued to climb. During the first half of 1998, the Standard & Poor's 500
Index earned a total return of 17.71% for the six months ended June 30, 1998.
Meanwhile, ongoing price restraints and lower costs for Asian imports helped
inflation fall--which kept interest rates and bond yields low. Subsequent to
the close of the second quarter, earnings announcements signaled a collapse
in growth as exports to Asia began to decline.
Stocks in Europe advanced on further improvements in earnings
expectations. Most European companies remained insulated from Asia's troubles
due to strong inter-regional trade. Stocks also benefited from a positive
balance of supply and demand, which resulted from a rising tide of corporate
share buyback programs and the spread of stock ownership through private
pension plans and equity mutual funds.
ASIAN ECONOMIC CRISIS DEEPENS
In the fourth quarter of 1997, the U.S. gross domestic product
(GDP)--which measures the production of goods and services--rose at an
annualized rate of 3.0%. With continued price restraints and gains in
productivity, inflation had fallen to 1.7%. In the first quarter of 1998,
with lower import prices and a flood of cash from overseas, GDP growth
improved to 5.4%. Despite upward pressure on wages from tight employment,
inflation fell to 1.4%, its lowest level since 1986.
After correcting in the first weeks of the year, on concerns that Asia's
economic woes would trim corporate profits, U.S. stock prices moved sharply
higher in February and March. In addition to positive economic fundamentals,
which included the strongest level of consumer confidence in decades, signs
that Asian economies were stabilizing with support from the International
Monetary Fund (IMF) helped increase stock demand. At the same time, corporate
consolidations and stock buyback programs continued to reduce stock supplies.
It soon became clear, however, that Asia's problems were getting worse
and included the onset of a recession in Japan. Meanwhile, the prospect of
lower earnings growth in the U.S., a federal budget surplus that will likely
shrink Treasury bond supplies, and strong demand for Treasuries by foreign
investors caused bond yields to continue to fall. Stock prices corrected
briefly, but managed a modest gain for the second quarter--helped by positive
economic fundamentals and a benign inflationary backdrop.
The worsening of Asia's problems produced greater distinctions between
the earnings outlooks for U.S. companies that sell to or compete with Asian
firms and companies that import from Asia or have no Asian ties. Companies in
the first group, largely industrial and basic materials firms, saw sharp
drops in earnings expectations. Companies in the second group, typically
service and consumer firms, saw little impact on earnings or are benefiting
from reduced import costs.
This "two-tiered" response to Asia's woes further narrowed the universe
of stocks with strong price gains. Over the past six months, the market
became even more focused on stocks with visible earnings streams and strong
liquidity. As in 1997, this sentiment generally favored stocks of larger
firms. Strong demand from foreign investors for familiar names further
supported this trend. Large multinational firms benefited from strong
European sales, which offset weakening Asian demand.
In an environment of strong market liquidity and low inflation, the
Funds have remained fully invested. By concentrating on companies with solid
fundamentals and strong potential for earnings growth--through a "bottom-up"
investment approach--the Funds made the most of recent market opportunities.
This investment strategy led us to overweight health care, which benefited
from the introduction of new products and strong pricing flexibility. We also
maintained an overweight in the financial sector, which has benefited from
low interest rates, as well as technology stocks, which have advanced on the
long-term growth prospects for their sector.
QUALITY GROWTH STOCKS SHOULD OUTPERFORM
We believe the problems in Asia are likely to worsen further before they
improve, as analysts are still trimming their economic and earnings forecasts.
For this reason, we expect to remain underweighted in Japan and the emerging
markets of Asia.
Page 1
<PAGE>
We currently expect to remain overweighted in Europe, because of
companies' improving earnings through restructuring and domestic growth.
Given our continued concern over Asia, we remain underweighted in the
cyclicals and commodities sectors.
On a global basis, our position in U.S. cyclical companies should also
remain underweighted. We believe U.S. GDP growth will slow in the second half
of 1998 to a rate of 2.0% to 2.5%. Although a tight labor market may keep
pressure on wages, the inability of most companies to raise prices, combined
with slower growth, should help keep inflation low. This should prevent the
Federal Reserve from raising interest rates, but corporate profit margins may
continue to shrink.
The market should continue to reward companies that deliver solid
earnings growth, given the scarcity of such companies. With emphasis on
quality companies with strong earnings potential, the Dresdner RCM Capital
Funds should perform well in this climate.
Page 2
<PAGE>
Dresdner RCM Growth Equity Fund
Management's Performance Review
Mid-cap stocks performed strongly in the first half of 1998, benefiting
from the same positive economic fundamentals that stocks as a whole enjoyed.
With the market looking for reliable earnings and strong liquidity, mid-cap
stocks outperformed small-cap issues, but underperformed large-cap shares. As
in other sectors, growth stocks outperformed value stocks.
With strong returns from stocks in the telecommunications, technology
services, and consumer sectors, the Dresdner RCM Growth Equity Fund (the
"Fund") performed exceptionally well against its market benchmark, as well as
against funds with similar investment objectives. For the six months ended
June 30, 1998, the Fund earned a total return of 15.09%. Over the same time,
the Russell Midcap Index earned a return of 9.13%, and mid-cap funds tracked
by Lipper Analytical Services earned an average return of 10.66%.
POSITIVE CONTRIBUTIONS FROM TELECOMMUNICATIONS,
TECHNOLOGY SERVICES AND CONSUMER SHARES
A large portion of this outperformance was due to the Fund's ongoing
commitment to quality growth issues. Although the market temporarily sought
value investments at times of stock price weakness, the prospect of a slowing
economy and the continuation of low interest rates generally favored growth
stocks.
In the first quarter the Fund benefited from the early recognition of
consolidation trends in the telecommunications sector, which led to an
overweighting in competitive local exchange carriers and second-tier
long-distance companies. In the second quarter, an overweighting in Internet
service companies (e.g., America Online, Amazon.com, and Yahoo) contributed
positively to performance.
Stock selection in the technology-services area further improved
returns--with strong gains from Citrix Systems, Visio, Network Associates and
PeopleSoft. Individual medical device shares also performed well, including
Sofamor/Danek Group (the Fund's largest position) and Boston Scientific.
In the consumer area, retail growth stocks (e.g., Nordstrom, Lowes, and
CKE Restaurants) made positive contributions. In addition to healthy consumer
spending, mid-cap retail issues gained from the market's desire for domestic
exposure in the face of the Asian crisis. Other contributions came from
takeovers of Fund holdings such as Camco International, Dekalb Genetics and
360DEG. Communications.
These gains offset disappointing performances from the health care
services area--including PhyCor and Concentra Managed Care--due to
uncertainty regarding federal health care cost reimbursement policies and
other regulatory issues. Finally, several consumer durable stocks, such as
Lear Corp. and Tower Automotive, lost ground due to the labor strike at
General Motors.
DEFENSIVE MEASURES
At the start of the year, we realigned the Fund's portfolio to reduce
its exposure to the economic crisis in Asia. In doing so, we gave greater
emphasis to telecommunications and health care firms in an attempt to
leverage consistent growth securities which were relatively insulated to
problems overseas. During the spring, the Fund was somewhat more defensive on
concerns about the deepening of Asia's crisis and the possibility of higher
interest rates at home. We used the opportunity of an uncertain market to
upgrade the quality of our portfolio, including the purchase of certain
technology service companies. We increased investments in the retail sector,
as well as shares of consumer nondurable firms--including Suiza Foods,
Clorox, Revlon, Avon, and Coca-Cola Enterprises.
With relative valuations and commodity prices at 10-year lows, we
increased our exposure to the energy sector. Among the new positions we added
were Burlington Resources, Stolt Comex Seaway, and Coflexip.
MID-CAP VALUATIONS ATTRACTING INVESTORS
Since the summer of 1997, year-over-year quarterly earnings comparisons
for major mid-cap stocks have been stronger than those for stocks in the S&P
500 Index. The attractive valuations in the mid-cap area have been somewhat
ignored, however, in the market's "flight to liquidity." This may be partly
due to the fact that foreign investors often seek U.S. stocks of the most
broadly recognized firms. Although the market will probably continue to
prefer stocks of larger firms while liquidity demands remain, the attractive
valuations in the mid-cap sector are now below the trough valuations levels
experienced in the first quarter of 1998. These relative valuations bode well
for a potential closing of the valuation gap with large cap securities as we
look forward.
Page 3
<PAGE>
[EDGAR REPRESENTATION OF GRAPHIC]
<TABLE>
<CAPTION>
FUND RUSSELL MIDCAP INDEX
<S> <C> <C>
12/31/79 $10,719 $11,158
1/31/80 $11,210 $11,777
2/28/80 $10,792 $11,516
3/31/80 $9,599 $9,996
4/30/80 $10,028 $10,641
5/31/80 $10,856 $11,467
6/30/80 $11,315 $12,024
7/31/80 $12,980 $13,034
8/31/80 $13,656 $13,375
9/30/80 $14,396 $13,821
10/31/80 $14,878 $13,966
11/30/80 $15,935 $15,074
12/31/80 $15,665 $14,784
1/31/81 $15,304 $14,439
2/28/81 $15,725 $14,694
3/31/81 $17,588 $15,843
4/30/81 $18,134 $15,918
5/31/81 $19,279 $16,306
6/30/81 $18,560 $16,008
7/31/81 $18,247 $15,809
8/31/81 $17,371 $14,908
9/30/81 $16,587 $13,951
10/31/81 $18,157 $14,914
11/30/81 $18,503 $15,518
12/31/81 $18,211 $15,139
1/31/82 $17,929 $14,583
2/28/82 $17,527 $13,964
3/31/82 $17,476 $13,825
4/30/82 $18,682 $14,486
5/31/82 $18,511 $13,970
6/30/82 $18,441 $13,595
7/31/82 $18,512 $13,274
8/31/82 $20,047 $14,871
9/30/82 $20,666 $15,293
10/31/82 $23,233 $17,338
11/30/82 $25,235 $18,395
12/31/82 $25,710 $18,660
1/31/83 $27,172 $19,319
2/28/83 $28,967 $19,987
3/31/83 $30,108 $20,691
4/30/83 $32,700 $21,984
5/31/83 $34,645 $22,903
6/30/83 $36,064 $23,737
7/31/83 $34,391 $22,991
8/31/83 $33,610 $22,846
9/30/83 $34,935 $23,486
10/31/83 $33,413 $22,575
11/30/83 $34,930 $23,541
12/31/83 $34,348 $23,105
1/31/84 $32,764 $22,449
2/29/84 $31,089 $21,235
3/31/84 $31,709 $21,587
4/30/84 $31,839 $21,350
5/31/84 $30,674 $20,146
6/30/84 $32,051 $20,774
7/31/84 $31,196 $20,166
8/31/84 $34,191 $22,684
9/30/84 $33,648 $22,791
10/31/84 $33,611 $22,880
11/30/84 $32,993 $22,784
12/31/84 $33,496 $23,435
1/31/85 $37,254 $25,659
2/28/85 $38,042 $26,119
3/31/85 $37,399 $25,970
4/30/85 $36,747 $25,894
5/31/85 $39,165 $27,365
6/30/85 $39,965 $28,030
7/31/85 $40,928 $27,994
8/31/85 $40,385 $27,876
9/30/85 $38,429 $26,510
10/31/85 $40,118 $27,883
11/30/85 $42,578 $29,810
12/31/85 $44,235 $30,937
1/31/86 $45,046 $31,633
2/28/86 $48,307 $34,205
3/31/86 $49,783 $36,003
4/30/86 $50,541 $35,845
5/31/86 $52,554 $37,701
6/30/86 $51,571 $38,216
7/31/86 $47,374 $35,687
8/31/86 $49,140 $38,219
9/30/86 $45,601 $35,511
10/31/86 $48,335 $37,364
11/30/86 $48,946 $37,640
12/31/86 $48,361 $36,569
1/31/87 $54,951 $41,072
2/28/87 $59,189 $43,530
3/31/87 $60,968 $43,942
4/30/87 $60,390 $42,842
5/31/87 $62,092 $42,989
6/30/87 $64,592 $44,737
7/31/87 $67,740 $46,653
8/31/87 $70,486 $48,302
9/30/87 $68,483 $47,379
10/31/87 $49,455 $35,710
11/30/87 $47,006 $33,727
12/31/87 $53,665 $36,652
1/31/88 $53,930 $38,355
2/29/88 $58,780 $41,072
3/31/88 $60,415 $41,126
4/30/88 $61,386 $41,380
5/31/88 $60,234 $41,283
6/30/88 $64,720 $44,110
7/31/88 $63,335 $43,225
8/31/88 $61,789 $42,264
9/30/88 $64,192 $43,702
10/31/88 $63,486 $43,889
11/30/88 $62,127 $42,836
12/31/88 $64,859 $43,910
1/31/89 $68,192 $46,537
2/28/89 $67,612 $46,427
3/31/89 $68,994 $47,190
4/30/89 $73,125 $49,465
5/31/89 $77,254 $51,695
6/30/89 $74,440 $51,503
7/31/89 $79,915 $55,093
8/31/89 $83,387 $56,935
9/30/89 $83,428 $56,413
10/31/89 $79,787 $53,752
11/30/89 $80,873 $54,489
12/31/89 $82,292 $55,446
1/31/90 $75,120 $50,999
2/28/90 $77,825 $52,033
3/31/90 $80,029 $53,300
4/30/90 $78,163 $51,011
5/31/90 $86,194 $55,632
6/30/90 $87,034 $55,271
7/31/90 $84,425 $53,628
8/31/90 $75,868 $47,860
9/30/90 $71,033 $44,312
10/31/90 $69,568 $42,913
11/30/90 $75,112 $47,046
12/31/90 $78,902 $49,072
1/31/91 $85,003 $52,398
2/28/91 $92,631 $56,764
3/31/91 $97,028 $59,119
4/30/91 $96,459 $59,474
5/31/91 $101,948 $62,298
6/30/91 $96,909 $59,427
7/31/91 $102,335 $62,340
8/31/91 $105,602 $64,204
9/30/91 $105,329 $63,830
10/31/91 $108,557 $65,138
11/30/91 $104,724 $62,445
12/31/91 $116,960 $69,442
1/31/92 $119,326 $70,748
2/28/92 $120,948 $72,373
3/31/92 $115,847 $70,524
4/30/92 $113,545 $71,075
5/31/92 $114,312 $71,534
6/30/92 $108,991 $70,374
7/31/92 $112,618 $73,316
8/31/92 $110,272 $71,628
9/30/92 $113,146 $73,113
10/31/92 $117,301 $74,902
11/30/92 $122,190 $78,677
12/31/92 $125,186 $80,789
1/31/93 $125,594 $82,405
2/28/93 $121,886 $82,496
3/31/93 $124,822 $85,179
4/30/93 $121,150 $82,922
5/31/93 $126,171 $85,555
6/30/93 $126,630 $86,522
7/31/93 $125,543 $86,939
8/31/93 $131,747 $90,806
9/30/93 $134,398 $91,153
10/31/93 $135,795 $91,229
11/30/93 $131,931 $89,113
12/31/93 $138,604 $92,341
1/31/94 $143,687 $94,889
2/28/94 $142,568 $93,598
3/31/94 $134,622 $89,611
4/30/94 $135,889 $90,226
5/31/94 $134,603 $90,349
6/30/94 $130,975 $87,673
7/31/94 $132,730 $90,682
8/31/94 $141,423 $94,981
9/30/94 $140,120 $92,660
10/31/94 $142,420 $93,369
11/30/94 $137,052 $89,250
12/31/94 $139,650 $90,409
1/31/95 $140,145 $92,266
2/28/95 $146,023 $97,042
3/31/95 $151,805 $99,819
4/30/95 $152,385 $101,324
5/31/95 $155,053 $104,654
6/30/95 $162,810 $108,171
7/31/95 $174,821 $113,423
8/31/95 $177,454 $115,160
9/30/95 $183,158 $117,762
10/31/95 $179,789 $115,128
11/30/95 $185,416 $120,853
12/31/95 $187,880 $121,558
1/31/96 $190,835 $124,137
2/28/96 $200,326 $127,052
3/31/96 $203,882 $128,890
4/30/96 $212,394 $132,542
5/31/96 $215,917 $134,544
6/30/96 $206,821 $132,526
7/31/96 $188,917 $124,324
8/31/96 $198,795 $130,243
9/30/96 $211,760 $136,676
10/31/96 $211,966 $137,772
11/30/96 $222,461 $146,165
12/31/96 $223,710 $144,673
1/31/97 $229,653 $150,085
2/28/97 $218,817 $149,858
3/31/97 $204,835 $143,388
4/30/97 $209,029 $147,059
5/31/97 $236,993 $157,788
6/30/97 $243,285 $162,951
7/31/97 $260,762 $176,549
8/31/97 $257,966 $174,642
9/30/97 $275,443 $184,614
10/31/97 $259,015 $177,433
11/30/97 $257,966 $181,656
12/31/97 $262,848 $186,669
1/31/98 $259,895 $183,160
2/28/98 $287,741 $197,483
3/31/98 $303,773 $206,843
4/30/98 $309,680 $207,360
5/31/98 $291,960 $200,953
6/30/98 $302,508 $203,746
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
The chart above shows the performance of the Dresdner RCM Growth Equity Fund
since the Fund's inception versus the Russell Midcap Index.(a) The chart
represents a cumulative return of 2,925.08%(b) for the Fund. The average
annual total return from the Fund's inception was 20.05%.(b)(c) The chart
assumes a hypothetical $10,000 initial investment in the Fund and reflects
all Fund expenses.
AVERAGE ANNUAL TOTAL RETURNS(b)
JUNE 30, 1998
<TABLE>
<CAPTION>
LIFE OF
1 YEAR 5 YEAR 10 YEAR FUND(c)
<S> <C> <C> <C>
24.34% 19.03% 16.67% 20.05%
</TABLE>
The data above represents past performance of the Fund and may not be
indicative of future performance. The investment return and principal value
of an investment in the Fund will fluctuate, so that shares, when redeemed,
may be worth more or less than their original cost.
(a) The Russell Midcap Index is composed of the smallest 800 companies in the
Russell 1000 Index. The Russell 1000 Index is made up of the 1,000 largest
companies in the Russell 3000 Index, which is composed of the 3,000 largest
U.S. companies by market capitalization and represents approximately 98% of
the investable U.S. equity market.
(b) Returns assume reinvestment of all dividends and capital gains
distributions at net asset value.
(c) The Fund began operations on November 6, 1979.
Page 4
<PAGE>
Dresdner RCM Growth Equity Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
<S> <C> <C> <C> <C>
CONSUMER DURABLES SECTOR 1.5%
AUTOMOTIVE RELATED 1.3%
20,000 US Lear Corp. * $ 1,026,250
298,000 US Tower Automotive Inc. * 12,776,750
-------------
13,803,000
-------------
CONSUMER DURABLES 0.2%
56,300 US Steelcase Inc. 1,463,800
CONSUMER NON-DURABLES SECTOR 17.9%
BEVERAGE/TOBACCO 1.4%
378,700 US Coca-Cola Enterprises Inc. 14,863,975
FOOD/FOOD PROCESSING 2.1%
84,000 US Dekalb Genetics Corp. Class B 7,948,500
232,000 US Suiza Foods Corp. * 13,847,500
-------------
21,796,000
-------------
HOUSEHOLD/RELATED NON-DURABLES 2.1%
127,000 US Avon Products Inc. 9,842,500
42,000 US Clorox Co. 4,005,750
153,000 US Revlon Inc. Class A * 7,860,375
-------------
21,708,625
-------------
LEISURE TIME PRODUCTS/SERVICES 3.9%
277,000 US CKE Restaurants Inc. 11,426,250
540,000 US Host Marriott Corp. * 9,618,750
204,400 US Promus Hotel Corp. * 7,920,500
49,000 LI Royal Caribbean Cruises Ltd. 3,895,500
296,900 US Speedway Motorsports Inc. * 7,589,506
-------------
40,450,506
-------------
RETAIL TRADE 8.4%
165,000 US Dollar Tree Stores Inc. * 6,703,125
872,000 US Family Dollar Stores Inc. 16,132,000
340,300 CA Hudsons Bay Co. 7,798,560
390,000 US Lowe's Companies Inc. 15,819,375
65,000 US Fred Meyer Inc. * 2,762,500
386,000 US Nordstrom Inc. 14,909,250
732,000 US Office Depot Inc. * 23,103,750
-------------
87,228,560
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 5
<PAGE>
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
<S> <C> <C> <C> <C>
CYCLICAL/CAPITAL GOODS SECTOR 7.1%
AEROSPACE/DEFENSE 0.3%
51,600 US Sundstrand Corp. $2,954,100
CHEMICALS/TEXTILES 1.1%
246,000 US Praxair Inc. 11,515,875
ELECTRICAL EQUIPMENT 1.7%
110,000 US W. W. Grainger Inc. 5,479,375
148,000 US Honeywell Inc. 12,367,250
-------------
17,846,625
-------------
INDUSTRIAL EQUIPMENT 1.3%
316,700 US Kennametal Inc. 13,222,225
TRANSPORTATION SERVICES 2.7%
207,700 US Air Express International Corp. 5,555,975
562,600 US Swift Transportation Co. Inc. * 11,146,513
577,000 US Werner Enterprises Inc. 10,999,063
-------------
27,701,551
-------------
ENERGY SECTOR 5.1%
ENERGY 5.1%
525,000 US Burlington Resources Inc. 22,607,813
25,000 US Camco International Inc. 1,946,875
205,000 FR Coflexip S.A. (ADR) 12,530,625
565,000 UK Stolt Comex Seaway S.A. * 10,946,875
282,500 UK Stolt Comex Seaway S.A. (ADR) * 4,943,750
-------------
52,975,938
-------------
HEALTH CARE SECTOR 16.9%
DRUGS AND HOSPITAL SUPPLIES 7.6%
498,200 US Alza Corp. * 21,547,150
182,000 US Bausch & Lomb Inc. 9,122,750
233,000 US Boston Scientific Corp. * 16,688,625
11,300 US Centocor Inc. * 409,625
189,000 US DePuy Inc. 5,339,250
82,400 FI Orion Yhtyma OY Series B 2,538,164
271,000 US Sofamor/Danek Group Inc. * 23,458,438
-------------
79,104,002
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 6
<PAGE>
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
<S> <C> <C> <C> <C>
HEALTH CARE SERVICES 9.3%
126,600 US AmeriSource Health Corp. * $8,316,038
217,050 US Bergen Brunswig Corp. 10,065,694
46,000 US Cardinal Health Inc. 4,312,500
230,662 US Concentra Managed Care Inc. * 5,997,212
378,000 US HBO & Co. 13,324,500
629,000 US Healthsouth Corp. * 16,786,438
342,000 US Health Care & Retirement Corp. * 13,487,625
301,500 US Orthodontic Centers of America Inc. * 6,312,656
194,000 US PhyCor Inc. * 3,213,125
362,000 US Tenet Healthcare Corp. * 11,312,500
59,000 US Universal Health Services Inc. ClassB * 3,444,125
-------------
96,572,413
-------------
INTEREST-SENSITIVE SECTOR 10.9%
BANKING 7.6%
61,000 US CCB Financial Corp. 6,481,250
378,400 US City National Corp. 13,977,150
242,000 US Compass Bancshares Inc. 10,920,250
333,000 US First Security Corp. 7,128,281
42,200 US National Commerce Bancorporation 1,767,125
527,500 US North Fork Bancorporation Inc. 12,890,781
260,000 US Southtrust Corp. 11,310,000
64,000 US Star Banc Corp. 4,088,000
324,900 US WestAmerica Bancorporation 10,437,413
-------------
79,000,250
-------------
GENERAL FINANCE 2.3%
229,000 US AMRESCO Inc. * 6,669,625
385,000 US Charter One Financial Inc. 12,969,688
144,000 US TCF Financial Corp. 4,248,000
-------------
23,887,313
-------------
INSURANCE 1.0%
131,300 US Life Re Corp. 10,766,600
TECHNOLOGY SECTOR 24.1%
COMPUTERS/OFFICE EQUIPMENT 0.9%
231,500 US Network Appliance Inc. * 9,014,031
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 7
<PAGE>
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
<S> <C> <C> <C> <C>
ELECTRONICS/NEW TECHNOLOGY 4.6%
313,400 US Advanced Fibre Communication * $12,555,588
103,000 US Altera Corp. * 3,044,938
131,502 US Analog Devices Inc. * 3,230,018
114,000 US Maxim Integrated Products Inc. * 3,612,375
461,000 CA Newbridge Networks Corp. * 11,035,188
122,000 US Sanmina Corp. * 5,291,750
148,500 US Uniphase Corp. * 9,323,016
-------------
48,092,873
-------------
TECHNOLOGY SERVICES 18.6%
77,800 US Amazon.com Inc. * 7,760,550
79,800 US America Online Inc. 8,458,800
171,500 US Aspen Technologies Inc. * 8,660,750
229,500 IE CBT Group PLC (ADR) * 12,278,250
77,500 US CMG Information Services Inc. * 5,483,125
163,300 US Cambridge Technology Partners (Mass.) Inc. * 8,920,263
75,000 US Ceridian Corp. * 4,406,250
326,000 US Citrix Systems Inc. * 22,290,250
209,000 US E *Trade Group Inc. * 4,793,938
78,000 US Electronics Arts Inc. * 4,212,000
89,000 US HNC Software Inc. * 3,632,313
72,000 US I2 Technologies Inc. * 2,529,000
156,000 US National Data Corp. 6,825,000
347,300 US Network Associates Inc. * 16,626,988
280,800 US PeopleSoft Inc. * 13,197,600
366,800 IE Saville Systems PLC (ADR) * 18,385,850
122,000 US Sterling Commerce Inc. * 5,917,000
225,350 US VERITAS Software Co. * 9,323,856
347,000 US Visio Corp. * 16,569,250
236,000 US Wind River Systems Inc. * 8,466,500
27,350 US Yahoo Inc. * 4,307,625
-------------
193,045,158
-------------
TELEMEDIA/SERVICES 15.0%
BUSINESS SERVICES 2.6%
309,300 US American Disposal Services Inc. * 14,498,438
512,800 US Sybron International Corp. Wisconsin * 12,948,200
-------------
27,446,638
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 8
<PAGE>
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
<S> <C> <C> <C> <C>
COMMUNICATIONS SERVICES 10.1%
48,100 US 360DEG. Communications Co. * $2,080,000
110,000 US Global TeleSystems Group Inc. * 5,362,500
346,000 US ICG Communications Inc. * 12,650,625
218,000 US Intermedia Communications of Florida Inc. * 9,142,375
461,000 BE Loral Space & Communications * 13,023,250
184,000 US McLeod Inc. * 7,153,000
589,400 US Nextel Communications Inc. * 14,661,317
400,000 US Smartalk Teleservices Inc. * 5,825,000
305,500 US Snyder Communications Inc. * 13,442,000
571,600 US Tel-Save Holdings Inc. * 8,431,100
652,000 US Western Wireless Corp. Class A * 12,999,250
-------------
104,770,417
-------------
MEDIA 2.3%
193,000 US Gartner Group Inc. Class A * 6,755,000
80,000 US General Motors Corp. Class H 3,770,000
402,000 US Sylvan Learning Systems Inc. * 13,165,500
-------------
23,690,500
-------------
TOTAL EQUITY INVESTMENTS (COST $903,244,826) 98.6% 1,022,920,975
-------------
SHORT-TERM INVESTMENTS
MONEY MARKET FUNDS 2.8%
16,967,438 US SSgA U.S. Government Money Market Fund 16,967,438
12,132,606 US SSgA Money Market Fund 12,132,606
--------------
29,100,044
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $29,100,044) 2.8% 29,100,044
TOTAL INVESTMENTS (COST $932,344,870) ** 101.4% 1,052,021,019
OTHER ASSETS LESS LIABILITIES (1.4%) (14,348,403)
--------------
NET ASSETS 100.0% $1,037,672,616
--------------
--------------
</TABLE>
* Non-income producing security
Tax information:
** For Federal income tax purposes, cost is $939,025,116 and unrealized
appreciation (depreciation) of equity securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $140,041,681
Unrealized depreciation (27,045,778)
------------
Net unrealized appreciation $112,995,903
------------
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 9
<PAGE>
Dresdner RCM Growth Equity Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
The Fund's investments in securities at June 30, 1998, categorized by country:
<TABLE>
<CAPTION>
% OF NET ASSETS
-----------------------------------
COUNTRY SHORT-TERM
COUNTRY CODE EQUITIES AND OTHER TOTAL
<S> <C> <C> <C> <C>
Bermuda BE 1.3% 1.3%
Canada CA 1.8% 1.8%
Finland FI 0.2% 0.2%
France FR 1.2% 1.2%
Ireland IE 3.0% 3.0%
Liberia LI 0.4% 0.4%
United Kingdom UK 1.5% 1.5%
United States US 89.2% 1.4% 90.6%
-----------------------------------
Total 98.6% 1.4% 100.0%
-----------------------------------
-----------------------------------
</TABLE>
Page 10
<PAGE>
Dresdner RCM Small Cap Fund
Management's Performance Review
Although large-cap stocks continued to dominate in the last six months,
many small-cap stocks performed quite well. Within the small-cap sector, the
market favored high-quality stocks with strong prospects for growth. By
emphasizing individual issues that met these criteria, we helped the Dresdner
RCM Small Cap Fund (the "Fund") make the most of this climate and outperform
both its market benchmark and other funds with similar investment objectives.
For the six months ended June 30, 1998, the Fund earned a total return
of 9.26%. That compares to a return of 4.93% for the Russell 2000 Index and
an average return of 6.48% for small-cap funds tracked by Lipper Analytical
Services.
STRONG INDIVIDUAL CONTRIBUTIONS
During the reporting period, the Fund's industry weightings contributed
slightly to returns. More important to performance was its selection of
individual growth issues. Within the hospital supplies group, the Fund
benefited from a sizable position in VISX, whose price doubled during the
period. Lason Holdings and Eastern Environmental Services in the business
services group and MICROS Systems and Engineering Animation in the
technology-services group also made positive contributions.
The strong returns from stocks like these far outweighed disappointing
performances from issues such as Hadco and Artesyn Technologies in the
electronics/ new technology group, Carbiner International in the business
services group, and Smartalk in the communication services group.
PORTFOLIO STRATEGIES
In looking for stocks with strong growth potential, we remained
committed to technology issues. After trimming technology holdings in the
fall of 1997, we rebuilt investments there in the final months of the year.
This left the Fund slightly overweighted in technology shares at the start of
1998. As the problems in Asia deepened in the months that followed, putting
technology stocks under great pressure, we reduced the Fund's commitment
there again. After prices had stabilized at more attractive levels, we then
added to the sector. This left the Fund overweighted in technology stocks at
the end of the period. As in other sectors, we looked for shares that offer
strong potential for growth and good value.
During the period, we trimmed investments in health care slightly. We
became concerned that the sector's performance might lag, as the market
fretted over a review of federal reimbursement policies for health care
costs. Throughout the period, we maintained a large weighting in business
services firms and technology services companies.
SMALL-CAP STOCKS POISED TO RALLY
With continued relative earnings growth, and valuations at all-time lows
versus large-cap shares, small-cap stocks are quite attractive today. To draw
the market from larger firms, however, the small-cap sector may need a longer
period of earnings improvement. The market may also need reassurance that
Asia's economic problems will not be a sustained threat to U.S. trade and
growth.
Once the market recognizes opportunities in the small-cap sector, growth
stocks should outperform. In the meantime, we will continue to emphasize
quality companies with strong earnings potential.
Page 11
<PAGE>
DRESDNER RCM SMALL CAP FUND
PERFORMANCE SUMMARY
[EDGAR REPRESENTATION OF GRAPHIC]
<TABLE>
<CAPTION>
FUND RUSSELL 2000 INDEX
<S> <C> <C>
1/1/92 $10,000 $10,000
1/31/92 $10,786 $10,811
2/28/92 $11,118 $11,127
3/31/92 $10,850 $10,751
4/30/92 $10,613 $10,373
5/31/92 $10,703 $10,511
6/30/92 $10,165 $10,017
7/31/92 $10,530 $10,366
8/31/92 $10,336 $10,072
9/30/92 $10,603 $10,304
10/31/92 $11,002 $10,630
11/30/92 $11,807 $11,444
12/31/92 $12,214 $11,842
1/31/93 $12,212 $12,242
2/28/93 $11,792 $11,960
3/31/93 $12,082 $12,348
4/30/93 $11,636 $12,008
5/31/93 $12,102 $12,539
6/30/93 $12,134 $12,617
7/31/93 $12,126 $12,791
8/31/93 $12,580 $13,344
9/30/93 $13,037 $13,720
10/31/93 $13,186 $14,074
11/30/93 $12,728 $13,615
12/31/93 $13,337 $14,080
1/31/94 $13,592 $14,522
2/28/94 $13,431 $14,469
3/31/94 $12,712 $13,707
4/30/94 $12,637 $13,788
5/31/94 $12,411 $13,633
6/30/94 $11,990 $13,173
6/31/94 $12,173 $13,390
8/31/94 $13,095 $14,136
9/30/94 $13,073 $14,088
10/31/94 $13,240 $14,031
11/30/94 $12,765 $13,464
12/31/94 $13,049 $13,824
1/31/95 $12,958 $13,649
2/28/95 $13,392 $14,217
3/31/95 $13,900 $14,461
4/30/95 $14,064 $14,782
5/31/95 $14,030 $15,037
6/30/95 $14,728 $15,817
7/31/95 $15,706 $16,728
8/31/95 $16,245 $17,074
9/30/95 $16,900 $17,380
10/31/95 $16,330 $16,602
11/31/95 $16,882 $17,300
12/31/95 $17,496 $17,756
1/31/96 $17,973 $17,737
2/28/96 $18,914 $18,290
3/31/96 $19,374 $18,662
4//30/96 $20,684 $19,660
5/31/96 $21,660 $20,435
6/30/96 $20,993 $19,596
7/31/96 $18,958 $17,884
8/30/96 $20,592 $18,923
9/29/96 $22,457 $19,662
10/31/96 $22,226 $19,359
11/30/96 $22,488 $20,157
12/31/96 $23,514 $20,685
1/30/97 $23,754 $21,098
2/28/97 $22,335 $20,587
3/31/97 $20,877 $19,615
4/30/97 $20,357 $19,670
5/31/97 $23,953 $21,858
6/30/97 $25,312 $22,795
7/31/97 $26,750 $23,856
8/31/97 $27,350 $24,403
9/30/97 $29,867 $26,189
10/31/97 $28,508 $25,039
11/30/97 $28,329 $24,877
12/31/97 $28,098 $25,312
1/30/98 $27,929 $24,912
2/28/98 $30,435 $26,753
3/31/98 $31,520 $27,855
4/30/98 $31,496 $28,009
5/31/98 $29,688 $26,499
6/30/98 $30,700 $26,555
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
The chart above shows the performance of the Dresdner RCM Small Cap Fund since
the Fund's inception versus the Russell 2000 Index.(a) The chart represents a
cumulative return of 207.00%(b) for the Fund. The average annual total return
from the Fund's inception was 18.84%.(b)(c) The chart assumes a hypothetical
$10,000 initial investment in the Fund and reflects all Fund expenses.
AVERAGE ANNUAL TOTAL RETURNS(b)
JUNE 30, 1998
<TABLE>
<CAPTION>
LIFE OF
1 YEAR 5 YEAR FUND(c)
<S> <C> <C>
21.29% 20.40% 18.84%
</TABLE>
The data above represents past performance of the Fund and may not be
indicative of future performance. The investment return and principal value
of an investment in the Fund will fluctuate, so that shares, when redeemed,
may be worth more or less than their original cost.
(a) The Russell 2000 Index is composed of the 2,000 smallest securities in the
Russell 3000 Index, which is composed of the 3,000 largest U.S. companies
by market capitalization and represents approximately 98% of the investable
U.S. equity market.
(b) Returns assume reinvestment of all dividends and capital gains
distributions at net asset value.
(c) The Fund began operations on January 3, 1992.
Page 12
<PAGE>
Dresdner RCM Small Cap Fund
Investments in Securities and Net Assets
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
<S> <C> <C> <C> <C>
CONSUMER DURABLES SECTOR 6.2%
AUTOMOTIVE RELATED 3.8%
224,000 US Dura Automotive Systems Inc. * $7,196,000
403,700 US Keystone Automotive Industries Inc. * 9,335,563
178,000 US Tower Automotive Inc. * 7,631,750
-------------
24,163,313
-------------
CONSUMER DURABLES 2.4%
419,000 US Windmere Durable Holdings Inc. * 15,005,438
CONSUMER NON-DURABLES SECTOR 14.6%
FOOD/FOOD PROCESSING 1.7%
714,000 US Omega Protein Corp. * 10,977,750
HOUSEHOLD/RELATED NON-DURABLES 4.5%
234,000 US Carson Inc. * 1,842,750
398,000 US Ocular Sciences Inc. * 12,935,000
129,400 US Rayovac Corp. * 2,935,763
281,000 US Scotts Co. * 10,467,250
-------------
28,180,763
-------------
LEISURE TIME PRODUCTS/SERVICES 2.8%
234,800 US Ambassadors International Inc. * 7,117,375
430,000 US Dave & Buster's Inc. * 10,696,250
-------------
17,813,625
-------------
RETAIL TRADE 5.6%
362,000 US CSK Auto Corp. * 9,140,500
391,400 US French Fragrances Inc. * 6,115,625
425,000 US Regis Corp. 12,564,063
196,400 IS Tefron Ltd. * 4,320,800
40,000 US United Stationers Inc. * 2,590,000
16,100 US Zale Corp. * 512,181
-------------
35,243,169
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 13
<PAGE>
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
<S> <C> <C> <C> <C>
CYCLICAL/CAPITAL GOODS SECTOR 12.4%
BUILDING/CONSTRUCTION 4.4%
543,500 US Comfort Systems USA Inc. * $12,704,313
239,000 US Integrated Electrical Services * 4,809,875
55,000 US NCI Building Systems Inc. * 3,176,250
200,000 US Service Experts Inc. * 6,900,000
-------------
27,590,438
-------------
RAW/BASIC MATERIALS 1.8%
100,000 US Commercial Metals Co. 3,075,000
254,200 US Metals USA Inc. * 4,384,950
203,100 US Oregon Steel Mills Inc. 3,782,738
-------------
11,242,688
-------------
` INDUSTRIAL EQUIPMENT 1.4%
371,500 US Tokheim Corp. * 7,615,750
173,000 US Transportation Components Inc. * 1,621,875
-------------
9,237,625
-------------
TRANSPORTATION SERVICES 4.8%
120,000 US Air Express International Corp. 3,210,000
290,000 US Covenant Transport Inc. Class A * 5,655,000
100,000 US Hub Group Inc. * 2,112,500
189,600 US Knight Transportation Inc. * 3,626,100
344,000 US Mark VII Inc. * 6,192,000
292,000 US Swift Transportation Co. Inc. * 5,785,250
297,500 BE Virgin Express Holdings PLC (ADR) * 3,848,906
-------------
30,429,756
-------------
ENERGY SECTOR 3.0%
ENERGY 3.0%
295,000 US Forcenergy Gas Exploration Inc. * 5,254,688
110,000 US Hanover Compressor Co. * 2,976,875
292,000 US Houston Exploration Co. * 6,697,750
170,000 US Newfield Exploration Co. * 4,228,750
-------------
19,158,063
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 14
<PAGE>
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
<S> <C> <C> <C> <C>
HEALTH CARE SECTOR 11.3%
DRUGS AND HOSPITAL SUPPLIES 5.4%
39,000 US Algos Pharmaceutical Corp. * $1,053,000
55,000 US Anesta Corp. * 794,063
150,000 US Bone Care International Inc. * 1,312,500
355,000 US CIMA Labs Inc. * 1,187,031
24,000 US Coulter Pharmaceuticals Inc. * 729,000
23,000 US GelTex Pharmaceuticals Inc. * 428,375
744,300 US Gensia Sicor Inc. * 2,977,200
383,600 US Heska Corp. * 4,243,575
25,000 US Icos Corp. * 478,125
39,000 US Inhale Therapeutic Systems * 965,250
28,000 US Ligand Pharmaceuticals Inc. Class B * 360,500
137,800 US NaPro BioTherapeutics Inc. * 172,250
127,000 US Novoste Corp. * 2,801,938
10,000 US PathoGensis Corp. * 290,000
38,900 US Penederm Inc. * (a) 778,000
29,000 US Progenics Pharmaceuticals Inc. * 431,375
283,400 US SangStat Medical Corp. * 8,891,675
16,000 US Sepracor Inc. * 664,000
19,000 UK Shire Pharmaceuticals Group PLC (ADR) * 406,125
16,000 US SUGEN Inc. * 260,000
42,000 US Triangle Pharmaceuticals Inc. * 624,750
13,000 US Vertex Pharmaceuticals Inc. * 292,500
65,000 US VISX Inc. * 3,867,500
-------------
- 34,008,732
-------------
HEALTH CARE SERVICES 5.9%
315,000 US American Retirement Corp. * 5,591,250
24,200 US Assisted Living Concepts Inc. * 417,450
391,100 US Centennial HealthCare Corp. * 7,088,688
68,200 US Curative Health Services Inc. * 1,943,700
162,600 US Horizon Health Corp. * 2,845,500
167,900 US Kendle International Inc. * 5,078,975
323,200 US Orthodontic Centers of America Inc. * 6,767,000
96,000 US ParExel International Corp. * 3,492,000
129,500 US Rural/Metro Corp. * 1,683,500
120,000 US Veterinary Centers of America Inc. * 2,257,500
-------------
37,165,563
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 15
<PAGE>
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
<S> <C> <C> <C> <C>
INTEREST-SENSITIVE SECTOR 7.7%
BANKING 3.6%
150,000 US Community First Bankshares Inc. $3,928,125
215,000 US Silicon Valley Bancshares * 7,652,656
55,600 US Southwest Bancorporation of Texas * 1,045,975
100,000 US Texas Regional Bancshares Inc. Class A 3,275,000
210,000 US WestAmerica Bancorporation 6,746,250
-------------
22,648,006
-------------
GENERAL FINANCE 4.1%
325,200 US American Capital Strategies Ltd. 7,438,950
28,400 US HealthCare Financial Partners Inc. * 1,741,275
234,000 US Sirrom Capital Corp. 6,084,000
571,200 US UniCapital Corp. * 10,924,200
-------------
26,188,425
-------------
TECHNOLOGY SECTOR 23.1%
COMPUTERS/OFFICE EQUIPMENT 3.7%
110,000 US Black Box Corp. * 3,650,625
436,800 US CHS Electronics Inc. * 7,807,800
353,800 US MICROS Systems Inc. * 11,708,569
-------------
23,166,994
-------------
ELECTRONICS/NEW TECHNOLOGY 6.5%
469,800 US Artesyn Technologies Inc. * 7,516,800
329,900 US Burr-Brown Corp. * 6,927,900
100,000 US Credence Systems Corp. * 1,900,000
275,000 US EFTC Corp. * 3,575,000
463,500 US Hadco Corp. * 10,805,344
85,000 US Radisys Corp. * 1,827,500
128,800 US SDL Inc. * 3,075,100
299,900 US Semtech Corp. * 5,304,481
-------------
40,932,125
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 16
<PAGE>
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
<S> <C> <C> <C> <C>
TECHNOLOGY SERVICES 12.9%
157,900 US Aspen Technologies Inc. * $7,973,950
200,300 US BroadVision Inc. * 4,782,163
77,000 US Engineering Animation Inc. * 4,697,000
297,000 US HNC Software Inc. * 12,121,313
97,000 US INSpire Insurance Solutions Inc. * 3,225,250
528,000 US International Telecommunication Systems Inc. * 15,312,000
377,650 US Metzler Group Inc. * 13,831,431
11,900 US New Era of Networks Inc. * 362,950
407,000 US Technology Solutions Co. * 12,896,813
47,000 US Visio Corp. * 2,244,250
18,300 US Whittman-Hart Inc. * 885,263
84,500 US Wind River Systems Inc. * 3,031,438
-------------
81,363,821
-------------
TELEMEDIA/SERVICES SECTOR 19.6%
BUSINESS SERVICES 18.1%
145,000 US American Disposal Services Inc. * 6,796,875
93,000 US Boron, Lepore & Associates Inc. * 3,534,000
365,000 US Caribiner International Inc. * 6,387,500
367,700 US Eastern Environmental Services Inc. * 12,501,800
365,300 US F. Y. I. Inc. * 10,411,050
259,000 US Healthcare Recoveries Inc. * 5,115,250
186,900 US Industrial Distribution Group Inc. * 2,896,950
211,900 US Iron Mountain Inc. * 9,482,525
130,000 US Lamalie Associates Inc. * 2,388,750
156,000 US Lason Holdings Inc. * 8,502,000
345,700 US NCO Group Inc. * 7,605,400
609,000 US Personnel Group of America, Inc. * 12,180,000
290,820 US Renaissance Worldwide Inc. * 6,325,335
225,511 US Romac International Inc. * 6,849,890
196,700 US Vestcom International Inc. * 1,819,475
450,900 US Wilmar Industries Inc. * 11,497,950
-------------
114,294,750
-------------
COMMUNICATIONS SERVICES 1.1%
460,000 US Smartalk Teleservices Inc. * 6,698,750
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 17
<PAGE>
<TABLE>
<CAPTION>
% OF MARKET
SHARES COUNTRY EQUITY INVESTMENTS NET ASSETS VALUE
<S> <C> <C> <C> <C>
MEDIA 0.4%
14,200 US SFX Entertainment Inc. Class A * $651,425
55,500 US Sylvan Learning Systems Inc. * 1,817,625
-------------
2,469,050
-------------
TOTAL EQUITY INVESTMENTS (COST $560,233,850) 98.0% 617,978,844
-------------
SHORT-TERM INVESTMENTS
MONEY MARKET FUNDS 2.1%
3,268,901 US SSgA U.S. Government Money Market Fund 3,268,902
10,039,655 US SSgA Money Market Fund 10,039,655
-------------
13,308,557
-------------
TOTAL SHORT-TERM INVESTMENTS (COST $13,308,557) 2.1% 13,308,557
-------------
TOTAL INVESTMENTS (COST $573,542,407) ** 100.1% 631,287,401
OTHER ASSSETS LESS LIABILITIES (0.1%) (381,780)
-------------
NET ASSETS 100.0% $630,905,621
-------------
-------------
</TABLE>
* Non-income producing security.
(a) Shares purchased through a private placement. The Investment Manager is
required to deliver the issuer's current Prospectus and financial reports
upon resale of such shares.
Tax Information:
** For Federal income tax purposes, cost is $576,678,609 and unrealized
appreciation (depreciation) of equity securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 98,806,522
Unrealized depreciation (44,197,431)
------------
Net unrealized appreciation $ 54,609,091
------------
------------
</TABLE>
The Fund's investments in securities at June 30, 1998, categorized by country:
<TABLE>
<CAPTION>
% OF NET ASSETS
---------------------------------------
COUNTRY SHORT-TERM
COUNTRY CODE EQUITIES AND OTHER TOTAL
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Belgium BE 0.6% 0.6%
Israel IS 0.7% 0.7%
United Kingdom UK 0.1% 0.1%
United States US 96.6% 2.0% 98.6%
---------------------------------------
Total 98.0% 2.0% 100.0%
---------------------------------------
---------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 18
<PAGE>
Dresdner RCM Capital Funds, Inc.
Statements of Assets and Liabilities
For the Six Months Ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
DRESDNER RCM
---------------------------------
GROWTH EQUITY SMALL CAP
FUND FUND
--------------- ------------
<S> <C> <C>
ASSETS:
Investments at cost $ 932,344,870 $573,542,407
--------------- ------------
--------------- ------------
Foreign currency at cost $ 20,069 $ --
--------------- ------------
--------------- ------------
Investments at value (Note 1) $1,052,021,019 $631,287,401
Foreign currency at value (Note 1) 20,133 --
Receivables:
Investments sold 12,077,707 9,385,374
Dividends and dividend reclaims 544,186 24,995
Interest 110,795 42,867
--------------- ------------
Total Assets 1,064,773,840 640,740,637
--------------- ------------
LIABILITIES:
Payables:
Investments purchased 13,646,124 5,869,210
Fund shares repurchased 12,798,707 3,441,051
Management fees (Note 5) 631,403 510,677
Custodian fees 24,990 14,078
--------------- ------------
Total Liabilities 27,101,224 9,835,016
--------------- ------------
NET ASSETS $1,037,672,616 $630,905,621
--------------- ------------
--------------- ------------
NET ASSETS CONSIST OF:
Paid-in capital (Note 3) $ 746,028,870 $458,579,519
Accumulated net investment loss (746,396) (2,213,362)
Accumulated net realized gain on investments and
foreign currency transactions 172,714,175 116,794,470
Net unrealized depreciation on foreign currency transactions (182) --
Net unrealized appreciation on investments 119,676,149 57,744,994
--------------- ------------
NET ASSETS $1,037,672,616 $630,905,621
--------------- ------------
--------------- ------------
SHARES OUTSTANDING 144,740,520 49,521,772
--------------- ------------
--------------- ------------
NET ASSET VALUE PER SHARE $ 7.17 $ 12.74
--------------- ------------
--------------- ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 19
<PAGE>
Dresdner RCM Capital Funds, Inc.
Statements of Operations
For the Six Months Ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
DRESDNER RCM
------------------------------
GROWTH EQUITY SMALL CAP
FUND FUND
------------- ------------
<S> <C> <C>
INVESTMENT INCOME:
Income:
Dividends $ 2,503,850 $ 663,926
Interest 677,291 533,135
Foreign tax withheld (23,539) --
------------- ------------
Total income 3,157,602 1,197,061
------------- ------------
Expenses:
Investment management fees (Note 5) 3,848,837 3,376,258
Custodian fees 54,361 33,365
Miscellaneous expenses 800 800
------------- ------------
Total expenses 3,903,998 3,410,423
------------- ------------
Net investment loss (746,396) (2,213,362)
------------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investments 128,828,793 95,782,981
Net realized loss on foreign currency transactions (24,718) --
------------- ------------
Net realized gain 128,804,075 95,782,981
------------- ------------
Net change in unrealized appreciation on foreign currency transactions
4,406 --
Net change in unrealized appreciation (depreciation) on investments
14,141,043 (32,332,842)
------------- ------------
Net unrealized appreciation (depreciation) 14,145,449 (32,332,842)
------------- ------------
Net realized and unrealized gain during the period 142,949,524 63,450,139
------------- ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 142,203,128 $ 61,236,777
------------- ------------
------------- ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 20
<PAGE>
Dresdner RCM Capital Funds, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
DRESDNER RCM
--------------------------------------------------------------------
GROWTH EQUITY FUND SMALL CAP FUND
-------------------------------- --------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997
--------------- -------------- ------------- ---------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment loss $ (746,396) $ (1,597,025) $ (2,213,362) $ (3,872,163)
Net realized gain on investments
and foreign currency transactions 128,804,075 193,067,561 95,782,981 131,224,372
Net change in unrealized
appreciation (depreciation) on
investments and foreign currency
transactions 14,145,449 (40,746,692) (32,332,842) (23,964,601)
--------------- -------------- ------------- ---------------
Net increase in net assets
resulting from operations 142,203,128 150,723,844 61,236,777 103,387,608
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
(Note 1) -- -- -- --
Net realized gain on investments
(Note 1) -- (161,794,250) -- (107,769,024)
NET INCREASE (DECREASE) FROM CAPITAL
SHARE TRANSACTIONS (NOTE 3) (65,355,550) 75,575,294 (91,741,792) 97,190,936
--------------- -------------- ------------- ---------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS 76,847,578 64,504,888 (30,505,015) 92,809,520
NET ASSETS:
Beginning of period 960,825,038 896,320,150 661,410,636 568,601,116
--------------- -------------- ------------- ---------------
End of period $1,037,672,616 $960,825,038 $630,905,621 $ 661,410,636
--------------- -------------- ------------- ---------------
--------------- -------------- ------------- ---------------
End of period net assets include
accumulated net investment
income (loss) of: $ (746,396) $ -- $ (2,213,362) $ --
--------------- -------------- ------------- ---------------
--------------- -------------- ------------- ---------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 21
<PAGE>
Dresdner RCM Capital Funds, Inc.
Dresdner RCM Growth Equity Fund
Financial Highlights
For a share outstanding during the six months ended June 30, 1998
(unaudited) or throughout each fiscal year ended December 31.
<TABLE>
<CAPTION>
1998 1997 1996(1) 1995 1994 1993
------- ------- ------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE: (2)
Net asset value, beginning of period $ 6.23 $ 6.40 $ 9.13 $ 7.89 $ 10.42 $10.97
------- ------- ------- ------ ------- ------
Net investment income (loss) -- (0.01) (0.01) 0.02 0.03 0.04
Net realized and unrealized gain on
investments 0.94 1.08 1.59 2.66 0.01 1.08
------- ------- ------- ------ ------- ------
Net increase in net asset value resulting
from investment operations 0.94 1.07 1.58 2.68 0.04 1.12
------- ------- ------- ------ ------- ------
Distributions:
Net investment income -- -- -- (0.02) (0.03) (0.04)
Net realized gain on investments -- (1.24) (4.31) (1.42) (2.54) (1.63)
------- ------- ------- ------ ------- ------
Total distributions -- (1.24) (4.31) (1.44) (2.57) (1.67)
------- ------- ------- ------ ------- ------
NET ASSET VALUE, END OF PERIOD $ 7.17 $ 6.23 $ 6.40 $ 9.13 $ 7.89 $10.42
------- ------- ------- ------ ------- ------
------- ------- ------- ------ ------- ------
TOTAL RETURN (3) 15.09% 17.50% 19.07% 34.53% 0.76% 10.72%
------- ------- ------- ------ ------- ------
------- ------- ------- ------ ------- ------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in millions) $ 1,038 $ 961 $ 896 $1,325 $ 1,365 $2,049
------- ------- ------- ------ ------- ------
------- ------- ------- ------ ------- ------
Ratio of expenses to average net assets 0.76%(5) 0.76% 0.84% 0.76% 0.83% 0.80%
------- ------- ------- ------ ------- ------
------- ------- ------- ------ ------- ------
Ratio of net investment income to average
net assets (0.15)%(5) (0.17)% (0.12)% 0.22% 0.22% 0.30%
------- ------- ------- ------ ------- ------
------- ------- ------- ------ ------- ------
Portfolio turnover 80.31% 155.10% 115.89% 96.50% 111.06% 67.00%
------- ------- ------- ------ ------- ------
------- ------- ------- ------ ------- ------
Average commission rate paid per share (4) $0.0578 $0.0564 $0.0571 -- -- --
------- ------- ------- ------ ------- ------
------- ------- ------- ------ ------- ------
</TABLE>
_________________________
(1) Stock split 25:1 at the close of business on June 17, 1996. All prior
period per share amounts were restated to reflect the stock split.
(2) Calculated using the average share method.
(3) Total return measures the change in value of an investment over the
period indicated.
(4) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged. This amount may vary from period
to period and fund to fund depending on the mix of trades executed in
various markets where trading practices and commission rate structures
may differ.
(5) Annualized.
The accompanying notes are an integral part of the financial statements.
Page 22
<PAGE>
Dresdner RCM Capital Funds, Inc.
Dresdner RCM Small Cap Fund
Financial Highlights
For a share outstanding during the six months ended June 30, 1998 (unaudited) or
throughout each fiscal year ended December 31.
<TABLE>
<CAPTION>
1998 1997 1996(1) 1995 1994 1993
------- ------- ------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE: (2)
Net asset value, beginning of period $ 11.66 $ 11.77 $ 11.35 $ 9.42 $ 10.41 $10.15
------- ------- ------- ------ ------- ------
Net investment loss (0.04) (0.08) (0.08) (0.04) (0.04) 0.00
Net realized and unrealized gain (loss) on
investments 1.12 2.29 3.82 3.21 (0.20) 0.91
------- ------- ------- ------ ------- ------
Net increase (decrease) in net asset value
resulting from investment operations 1.08 2.21 3.74 3.17 (0.24) 0.91
------- ------- ------- ------ ------- ------
Distributions:
Net investment income -- -- -- -- -- --
Net realized gain on investments -- (2.32) (3.32) (1.24) (0.75) (0.65)
------- ------- ------- ------ ------- ------
Total distributions -- (2.32) (3.32) (1.24) (0.75) (0.65)
------- ------- ------- ------ ------- ------
NET ASSET VALUE, END OF PERIOD $ 12.74 $ 11.66 $ 11.77 $11.35 $ 9.42 $10.41
------- ------- ------- ------ ------- ------
------- ------- ------- ------ ------- ------
TOTAL RETURN (3) 9.26% 19.49% 34.39% 34.08% (2.16)% 9.20%
------- ------- ------- ------ ------- ------
------- ------- ------- ------ ------- ------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in millions) $ 631 $ 661 $ 569 $ 410 $ 416 $ 660
------- ------- ------- ------ ------- ------
------- ------- ------- ------ ------- ------
Ratio of expenses to average net assets 1.01%(5) 1.02% 1.00% 1.00% 1.11% 0.90%
------- ------- ------- ------ ------- ------
------- ------- ------- ------ ------- ------
Ratio of net investment income to average
net assets (0.66)%(5) (0.68)% (0.58)% (0.20)% (0.33)% 0.00%
------- ------- ------- ------ ------- ------
------- ------- ------- ------ ------- ------
Portfolio turnover 65.99% 117.64% 117.00% 83.90% 117.71% 80.00%
------- ------- ------- ------ ------- ------
------- ------- ------- ------ ------- ------
Average commission rate paid per share (4) $0.0515 $0.0510 $0.0538 -- -- --
------- ------- ------- ------ ------- ------
------- ------- ------- ------ ------- ------
</TABLE>
_________________________
(1) Stock split 12:1 at the close of business on June 17, 1996. All prior
period per share amounts were restated to reflect the stock split.
(2) Calculated using the average share method.
(3) Total return measures the change in value of an investment over the period
indicated.
(4) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged. This amount may vary from period
to period and fund to fund depending on the mix of trades executed in
various markets where trading practices and commission rate structures may
differ.
(5) Annualized
The accompanying notes are an integral part of the financial statements.
Page 23
<PAGE>
Dresdner RCM Capital Funds, Inc.
Notes to Financial Statements
June 30, 1998
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
Dresdner RCM Capital Funds, Inc. ("Capital Company"), previously RCM
Capital Funds, Inc. is organized as a Maryland corporation and is registered
under the Investment Company Act of 1940, as amended, as an open-end
management investment company. The Capital Company consists of three series:
Dresdner RCM Growth Equity Fund ("Growth Fund") and Dresdner RCM Small Cap
Fund ("Small Cap Fund") are diversified, no-load series of the Capital
Company. These two series are collectively referred to as the "Funds."
Dresdner RCM International Equity Fund ("International Fund") is a
non-diversified, no load series of the Capital Company. International Fund
financial information is included in the semi-annual report of Dresdner RCM
Global Funds.
The following is a summary of significant accounting policies
consistently followed by the Funds in the preparation of their financial
statements. The policies are in conformity with generally accepted accounting
principles which require management to make estimates and assumptions that
affect the reported amount of assets and liabilities. Actual results may
differ from these estimates.
A. SECURITIES VALUATIONS:
Investment securities are stated at fair market value. Equity securities
traded on stock exchanges are valued at the last sale price on the exchange
or in the principal over-the-counter market in which such securities are
traded as of the close of business on the day the securities are being
valued. If there has been no sale on such day, then the security will be
valued at the closing bid price on such day. If no bid price is quoted on
such day, then the security will be valued by such method as a duly
constituted committee of the Board of Directors of the Capital Company shall
determine in good faith to reflect its fair market value. Readily marketable
securities traded only in the over-the-counter market that are not listed on
NASDAQ or similar foreign reporting service will be valued at the mean bid
price, or using such other comparable sources as the Board of Directors of
the Capital Company in good faith deems appropriate to reflect their fair
market value. Other portfolio securities held by the Funds will be valued at
current market value, if current market quotations are readily available for
such securities. To the extent that market quotations are not readily
available, such securities will be valued by whatever means a duly
constituted committee of the Board of Directors of the Capital Company in
good faith deems appropriate to reflect their fair market value. Short-term
investments with a maturity of 60 days or less are valued at amortized cost,
which approximates market value.
B. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME:
Security transactions are recorded as of the date of purchase or sale.
Realized gains and losses on security transactions are determined on the
identified cost basis for both financial statement and federal income tax
purposes. Interest income, foreign taxes and expenses are accrued daily.
Dividends are recorded on the ex-dividend date.
C. FOREIGN CURRENCY TRANSACTIONS:
The records of the Funds are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars at current exchange rates. Purchases and sales of foreign
securities and income and withholding taxes are translated on the respective
dates of such transactions. Net realized currency gains and losses include
foreign currency gains and losses between trade date and settlement date and
foreign currency transactions. The Funds do not isolate that portion of
foreign currency exchange fluctuation on investments from unrealized
appreciation and depreciation which arises from changes in market prices.
Such fluctuations are included with the net unrealized appreciation or
depreciation on investments.
Page 24
<PAGE>
Dresdner RCM Capital Funds, Inc.
Notes to Financial Statements
June 30, 1998
(Unaudited)
D. FEDERAL INCOME TAXES:
It is the policy of the Funds to comply with the requirements for
qualification as a "regulated investment company" under the Internal Revenue
Code of 1986, as amended (the "Code"). It is also the intention of the Funds
to make distributions sufficient to avoid imposition of any excise tax under
Section 4982 of the Code. Therefore, no provision has been made for Federal
or excise taxes on income and capital gains.
E. DISTRIBUTIONS:
Distributions to shareholders are recorded by the Funds on the
ex-dividend date. Income and capital gain distributions are determined in
accordance with Federal income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily due
to differing treatments for losses as a result of wash sales, foreign
currency transactions and/or passive foreign investment companies.
2. INVESTMENT IN FOREIGN SECURITY AND CURRENCY
Investing in foreign equity securities and currency transactions
involves significant risks, some of which are not typically associated with
investments of domestic origin. The Funds' investments in foreign and
emerging markets will subject them to the risk of foreign currency
exchange rate fluctuations, perceived credit risk and adverse economic and
political developments.
3. CAPITAL SHARES
At June 30, 1998, there were 1,000,000,000 shares of the Capital
Company's common stock authorized, at $0.0001 par value. Of this amount,
300,000,000 were classified as shares of the Growth Fund; 100,000,000 were
classified as shares of the Small Cap Fund, 100,000,000 were classified as
shares of the International Fund; and 500,000,000 shares remain unclassified.
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
GROWTH FUND SIX MONTHS ENDED
JUNE 30, 1998 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1997
------------------------------ -------------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 5,566,681 $ 39,101,931 8,822,435 $ 58,202,047
Shares issued in connection with
reinvestment of distributions - - 26,780,241 160,413,64
Shares repurchased (14,981,568) (104,457,481) (21,422,817) (143,040,397)
----------- ------------ ----------- -------------
Net increase (decrease) (9,414,887) ($65,355,550) 14,179,859 $ 75,575,294
----------- ------------ ----------- -------------
----------- ------------ ----------- -------------
</TABLE>
Page 25
<PAGE>
Dresdner RCM Capital Funds, Inc.
Notes to Financial Statements
June 30, 1998
(Unaudited)
3. CAPITAL SHARES (CONTINUED)
<TABLE>
<CAPTION>
SMALL CAP FUND SIX MONTHS ENDED
JUNE 30, 1998 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1997
------------------------------ -------------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 3,691,527 $44,996,201 7,791,481 $ 96,712,138
Shares issued in connection with
reinvestment of distributions - - 9,386,666 105,599,978
Shares repurchased (10,884,933) (136,737,993) (8,781,376) (105,121,180)
----------- ------------ ----------- -------------
Net increase (decrease) (7,193,406) ($91,741,792) 8,396,771 $ 97,190,936
----------- ------------ ----------- -------------
----------- ------------ ----------- -------------
</TABLE>
At June 30, 1998, seven shareholders in the Growth Fund and five
shareholders in the Small Cap Fund each held more than 5% of the outstanding
shares of the respective Funds. These shareholders, in aggregate, held
approximately 63% of the Growth Fund and 49% of the Small Cap Fund.
4. PURCHASES AND SALES OF SECURITIES
The following summarizes purchases and sales of investment securities,
other than short-term investments, by each Fund, for 6 months ended June 30,
1998. There were no purchases or sales of U.S. Government obligations during the
period.
PURCHASES AND SALES OF SECURITIES
<TABLE>
<CAPTION>
PURCHASES
------------
<S> <C>
Growth Fund $802,960,808
Small Cap Fund $433,731,335
SALES
------------
Growth Fund $854,103,979
Small Cap Fund $495,015,319
</TABLE>
5. TRANSACTIONS WITH RELATED PARTIES
Dresdner RCM Global Investors LLC (previously RCM Capital Management,
L.L.C.) ("Dresdner RCM") manages the Funds' investments and provides various
administrative services, subject to the authority of the Board of Directors.
The Growth Fund and Small Cap Fund pay investment management fees monthly at
an annualized rate of 0.75% and 1.00%, respectively, of the Funds' average
daily net assets. For the six months ended June 30, 1998, investment
management fees were $3,848,837 for the Growth Fund and $3,376,258 for the
Small Cap Fund.
The Funds are each responsible for the payment of certain of their
operating expenses, including brokerage and commission expenses; taxes levied
on the Funds; interest charges on borrowings (if any); charges and expenses
of their custodian; and payment of investment management fees due to the
Investment Manager. The Investment Manager is responsible for other expenses
incurred by the Growth Fund and the Small Cap Fund.
At June 30, 1998, the Dresdner RCM Profit Sharing Plan, participation in
which is limited to employees of Dresdner RCM, owned 372,133 shares of the
Growth Fund and 405,303 shares of the Small Cap Fund.
Page 26
<PAGE>
Dresdner RCM Capital Funds, Inc.
Notes to Financial Statements
June 30, 1998
(Unaudited)
6. DIRECTORS' FEES
As of June 30,1998, each director receives from the Capital Company an
annual retainer of $1,000 (the retainer is evenly prorated among each series
of the Capital Company), plus $500 for each meeting of the Board attended and
$250 for each committee meeting attended. These fees are paid by the
Investment Manager as outlined in Note 5 above.
Each Director who is not an interested person of the Capital Company may
elect to defer receipt of all or a portion of his or her fees for service as
a director in accordance with the terms of a Deferred Compensation Plan for
Non-Interested Directors ("Directors' Plan"). Under the Directors' Plan, an
eligible Director may elect to have his or her deferred fees deemed invested
either in 90-day U.S. Treasury bills or shares of the common stock of the
Capital Company or of the Equity Company, or a combination of these options,
and the amount of deferred fees payable to such director under the Directors'
Plan will be determined by reference to the return on such deemed
investments. Generally, the deferred fees (reflecting any earnings, gains or
losses thereon) become payable upon the director's retirement or disability.
Page 27
<PAGE>
INVESTMENT MANAGER
Dresdner RCM Global Investors LLC
Four Embarcadero Center
San Francisco, California 94111
TRANSFER AND REDEMPTION AGENT
State Street Bank and Trust Company
1776 Heritage Drive
North Quincy, Massachusetts 02171
DISTRIBUTOR
Funds Distributor, Inc.
60 State Street, Suite 1300
Boston, Massachusetts 02109
CUSTODIAN
State Street Bank and Trust Company
1776 Heritage Drive
North Quincy, Massachusetts 02171
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
555 South Flower Street
Los Angeles, California 90071
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
One Post Office Square
Boston, Massachusetts 02109
Page 28
<PAGE>
This brochure is not authorized for distribution to prospective investors
unless preceded or accompanied by a Dresdner RCM Global Funds prospectus,
which contains complete information about the Funds, including expenses.
Investors should read the prospectus carefully before they invest or send
money, as it explains certain risks associated with investing in these Funds,
including investments in international and emerging markets. These risks
include social, economic and political instability, market illiquidity, and
currency volatility. There are also special risks associated with investing
in stocks of small companies, which tend to be more volatile and less liquid
than stocks of large companies. There are additional risks associated with
investing in Funds that lack industry diversification. Portfolio holdings are
subject to change and should not be considered recommendation to purchase.
Distributor: Dresdner RCM Distributors, a division of Funds Distributor Inc.
