<PAGE>
<TABLE>
<C> <S>
Dresdner RCM
Capital Funds
DECEMBER 31, 1999 Annual Report
</TABLE>
[Dresdner Logo]
<PAGE>
February 22, 2000
Dear Shareholder:
We are pleased to present the Dresdner RCM Capital Funds' Annual
Shareholder Report for the 12 months ended December 31, 1999. Inside, you will
find discussions of each mutual fund by Dresdner RCM Capital Fund portfolio
managers. They review relevant market conditions, the factors affecting their
performance and the investment strategies they employed in 1999, as well as
their outlook for 2000. Each report also includes performance summaries, lists
of holdings and portfolio weightings as of December 31, 1999.
To be sure, 1999 was an excellent year for equities in the major markets
of the world. In the U.S., the S&P 500 Index and the NASDAQ set records, as the
economy continued to enjoy the longest period of uninterrupted prosperity in
U.S. history. In Japan, the stock market began to snap back from a decade-long
slump, as cultural changes favoring shareholder value began to take place. Even
in Europe, where the euro steadily weakened throughout the year, investors began
to enjoy greater returns in the second half of the year as economic growth
improved.
On the contrary, at the beginning of 1999, small cap markets performed
poorly as investors, worried about the global economy, sought the safety and
liquidity of large cap stocks. As the year progressed, however, and economies
around the world revived, the relatively higher growth prospects offered by
small and mid-sized companies started to look more attractive to investors. By
the second half of 1999, small caps actually outperformed large caps. For the
full year, the Russell 2000 Index matched the S&P 500 Index, the first time it
has done so since 1994.
The driving force behind the Dresdner RCM Capital Funds' success was a
willingness to boldly embrace technology and telecommunications stocks as the
Internet and wireless communications generated tremendous investment
opportunities. Although these sectors remain overweighted in the Funds'
portfolios, as compared to their benchmark stock indices, Dresdner RCM Global
Investors LLC, the Funds' investment manager continues to use a bottom-up
analysis of company fundamentals, combined with a careful assessment of
projected earnings growth, to select firms that offer the best potential for
achieving their business goals.
In identifying possible investments, Dresdner RCM in conjunction with
its worldwide affiliates, draws on the expertise of nearly 200 investment
professionals, primarily securities analysts and portfolio managers. In addition
to having traditional finance credentials, many also have advanced degrees or
direct industry experience in the fields that they cover such as engineering or
medicine. The Funds also draw from Grassroots-SM- Research, a unique in-house
adjunct to traditional research efforts, which uncovers and confirms marketplace
demand for key products and services.
Thank you for your continued confidence in the Dresdner RCM Capital
Funds. We believe that our strong commitment to value and performance, built on
a rigorous company-by-company selection approach, has served our shareholders
well and will continue to do so. If you would like more information on a
specific Fund, or you have any questions about the material in this report,
please call us at 1-800-227-5183 or visit us at www.DRCMFunds.com.
Sincerely,
[SIGNATURE]
DeWitt F. Bowman
Chairman
Dresdner RCM Capital Funds, Inc.
<PAGE>
Dresdner RCM MidCap Fund
Management's Performance Review
A focus on the electronics, technology services and communications
industries, as well as superior stock selection within these industries, allowed
the Dresdner RCM MidCap Fund to outperform its benchmark indexes. For the year
ended December 31, 1999, the Dresdner RCM MidCap Fund posted a total return of
60.18%, outperforming the Russell Midcap Growth Index, which produced a total
return of 51.29% and the Russell Midcap Index, which returned 18.23%.
Effective December 16, 1999 the name of the Dresdner RCM Growth Equity
Fund has been changed to the Dresdner RCM MidCap Fund. This name change is
designed to reflect more accurately the Fund's investment objective and the
types of stocks in which the Fund primarily invests. The Fund's performance
benchmarks, the S&P Midcap 400 Index and the Russell Midcap Index, have been
replaced with the Russell Midcap Growth Index. The Russell Midcap Growth Index
reflects more accurately the Investment Manager's investment style, and
therefore should provide shareholders in the Fund with a more meaningful index
against which to compare the Fund's performance. Finally, the Fund's market
capitalization restriction is now measured against the Russell Midcap Growth
Index -- the Fund invests in small- to medium-sized companies with total market
capitalizations not exceeding those of the largest company included in the
Russell Midcap Growth Index -- rather than the S&P Midcap 400 Index. Because the
Fund will be using the Russell Midcap Growth Index as its primary benchmark,
this change should ensure that the Fund is able to invest in the types of stocks
against which its performance will be compared.
MARKET REVIEW
Style was the most important determinant of performance in 1999 as
growth substantially outperformed value across all capitalization ranges,
particularly in the first, third and fourth quarters. Investors briefly shifted
their focus to value last spring as the strength of the underlying economy led
to outperformance by economically sensitive sectors. However, the shift was
short-lived as the Federal Reserve Board's move to raise interest rates was seen
as the precursor of slower growth. In such an environment, investors sought out
companies, typically in technology and telecommunications, believed to be immune
to slowdowns in the business environment.
In contrast to growth vs. value, the shift from large-cap to mid-cap
(and to a lesser extent, small-cap) stocks that began in the second quarter
continued throughout the year. It was no longer a disadvantage to have a smaller
market capitalization, especially if the holding was in technology or telecom.
Other sectors such as biotechnology and energy produced strong performance, but
the non-tech winners were few and far between.
FACTORS AFFECTING PERFORMANCE
The Fund's heavy overweight in the technology and telecommunications
sectors, comprising 69% of the portfolio, was the most significant reason that
it outperformed the Russell Midcap Index, which only allocates 40% to those two
groups. The global research capability of Dresdner RCM Global Investors LLC
("Dresdner RCM,") the Fund's investment manager, allowed the Fund to capitalize
on emerging trends such as the degree of wireless penetration in Europe and its
likely expansion in the U.S. As a result, the Fund continued to be overweighted
in telecommunications, particularly wireless technology with such holdings as
VoiceStream Wireless Corp. and bandwidth capacity with JDS Uniphase.
The Fund's strategy was to invest in beneficiaries of the Internet,
rather than investing directly in Internet portals or destination sites. For
example, Entercom, a company that owns radio stations, has profited from
consolidation in the radio industry brought on by deregulation as well as a
surge in advertising spending from the Internet portals.
Furthermore, diminished concerns about Y2K led to significant returns
for software manufacturers such as Check Point Software Technologies and I2
Technologies whose products help companies "web-ify" their business processes.
Circuit City Stores, a consumer electronics specialty retailer,
represented another investment theme linked to the Internet as well as advances
in digital technology. One concern, competing DVD and DIVX video technology,
weighed heavily on Circuit City's stock early in 1999 as investors recalled the
VHS/Beta videocassette wars of the early 1980s. However, surveys performed by
Dresdner RCM's Grassroots-SM- Research
Page 2
<PAGE>
Dresdner RCM MidCap Fund
Management's Performance Review
division found that consumers didn't differentiate between the two digital
technologies, and that overall demand would remain strong. Dresdner RCM's
fundamental research capabilities, combined with Grassroots-SM- Research inputs,
led the Fund's managers to build a strong position in the stock, which was
rewarded over the course of the year.
Many retailers unrelated to technology performed poorly during the year,
as did interest-sensitive groups such as financial services and construction.
For example, the Fund's investment in Martin Marietta Materials, which produces
building materials such as granite, limestone and sandstone for commercial and
residential structures and highways, was adversely affected by rising interest
rates and unexpected sluggishness in its core business.
The Fund's extremely small weighting in interest-sensitive stocks (2% of
the portfolio) compared to the Russell Midcap Index (23%) was very beneficial to
performance. A 7% weighting in energy companies helped the Fund's results
compared to the benchmark (4%) as rising oil prices generated demand for oil
drilling services. However, a very small weighting in the booming biotechnology
field represented a missed opportunity for the portfolio. The Fund has recently
increased its weighting in this area, leveraging the human genomics theme.
OUTLOOK
Now that international economies have begun growing, the U.S. will no
longer have to be counted upon to be the sole engine of global growth.
Throughout the world, core growth sectors, within all market capitalizations,
will likely continue to be found in technology and telecommunications. The
Internet will continue as a theme, with investments in telecom equipment and
services rather than the destination site and portal companies. With the Y2K
fear gone, technology spending will likely surge to meet the challenges of a
Web-based economy.
Outside of technology and telecom, Dresdner RCM believes that the
exploration and production energy companies are going to benefit from a new
capital spending cycle and the improving supply and demand characteristics for
the oil and natural gas markets. Biotechnology companies that focus on niche
products or gene therapy hold exciting promise. Other areas of growth will be
located through Dresdner RCM's intensive bottom-up research-driven investment
process.
Page 3
<PAGE>
Dresdner RCM MidCap Fund
Total Return Index Comparison(b)
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
RCM MIDCAP FUND
<S> <C> <C> <C>
Fund Russell Midcap Index (a)
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
2/29/92 $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
2/29/96 $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 $309,680.18 $207,360
5/31/98 $291,960 $200,953
6/30/98 $302,508 $203,746
7/31/98 $285,210 $194,028
8/31/98 $224,033 $162,983
9/30/98 $233,315 $173,528
10/31/98 $256,520 $185,363
11/30/98 $273,396 $194,149
12/31/98 $302,435 $205,546
1/31/99 $309,133 $205,196
2/28/99 $293,161 $198,363
3/31/99 $314,801 $204,572
4/30/99 $331,803 $219,690
5/31/99 $328,711 $219,053
6/30/99 $352,451 $226,785
7/31/99 $346,744 $220,549
8/31/99 $341,591 $214,836
9/30/99 $340,561 $207,274
10/31/99 $372,505 $217,099
11/30/99 $409,601 $223,351
12/31/99 $484,429 $242,941
</TABLE>
PERFORMANCE(b)
December 31, 1999
<TABLE>
<CAPTION>
CUMULATIVE
SINCE SINCE
MIDCAP FUND 1 YEAR 5 YEARS 10 YEARS INCEPTION INCEPTION
<S> <C> <C> <C> <C> <C>
Average Annual Total
Return(c) 60.18% 28.24% 19.40% 21.22% 4,744.29%
Russell MidCap Index
Average Annual Total
Return(a) 18.23% 21.86% 15.92% 17.14% 2,329.41%
</TABLE>
The data above represents past performance of the Fund and may not
indicate 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 MidCap Fund
Portfolio of Investments
December 31, 1999
<TABLE>
<CAPTION>
% OF MARKET VALUE
SHARES COUNTRY NET ASSETS (NOTE 1)
<C> <C> <S> <C> <C>
- ----------------------------------------------------------------------------------------------
EQUITY INVESTMENTS
CONSUMER DURABLES SECTOR 0.1%
CONSUMER DURABLES 0.1%
35,000 US Sealed Air Corp. * $ 1,813,438
CONSUMER NON-DURABLES SECTOR 8.6%
BEVERAGE/TOBACCO 0.6%
180,000 US Coca Cola Enterprises Inc. 3,622,500
76,000 US Coors (Adolph) Co. (Class B) 3,990,000
--------------
7,612,500
--------------
HOUSEHOLD/RELATED NON-DURABLES 0.6%
85,000 US Dial Corp. 2,066,562
130,000 US Estee Lauder Cos. Inc. (Class A) 6,556,875
--------------
8,623,437
--------------
LEISURE TIME PRODUCTS/SERVICES 0.7%
187,500 US Royal Caribbean Cruises Ltd. 9,246,094
RETAIL TRADE 6.7%
604,000 US Abercrombie & Fitch Co. (Class A) * 16,119,250
137,000 US Bed Bath & Beyond Inc. * 4,760,750
22,900 US CDW Computer Centers Inc. * 1,800,513
659,000 US Circuit City Stores Inc. 29,696,187
265,000 US Family Dollar Stores Inc. 4,322,813
19,900 NL Gucci Group 2,278,550
185,000 US Jones Apparel Group Inc. * 5,018,125
305,000 US Nordstrom Inc. 7,987,187
705,000 US Staples Inc. * 14,628,750
82,000 US Tandy Corp. 4,033,375
--------------
90,645,500
--------------
CYCLICAL/CAPITAL GOODS SECTOR 4.9%
AEROSPACE/DEFENSE 1.3%
86,000 US General Dynamics Corp. 4,536,500
318,500 US L-3 Communications Holdings Inc. * 13,257,562
--------------
17,794,062
--------------
BUILDING/CONSTRUCTION 0.2%
64,500 US Martin Marietta Materials Inc. 2,644,500
CHEMICALS/TEXTILES 1.4%
194,500 US Praxair Inc. 9,785,781
223,000 US Rohm & Haas Co. 9,073,313
--------------
18,859,094
--------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 5
<PAGE>
Dresdner RCM MidCap Fund
Portfolio of Investments
December 31, 1999
<TABLE>
<CAPTION>
% OF MARKET VALUE
SHARES COUNTRY NET ASSETS (NOTE 1)
<C> <C> <S> <C> <C>
- ----------------------------------------------------------------------------------------------
EQUITY INVESTMENTS (CONTINUED)
ELECTRICAL EQUIPMENT 0.4%
101,500 US Rockwell International Corp. $ 4,859,313
RAW/BASIC MATERIALS 0.4%
117,500 CA Alcan Aluminum Ltd. 4,839,531
TRANSPORTATION SERVICES 1.2%
385,000 US Expeditors International of Washington
Inc. 16,867,813
ENERGY SECTOR 7.2%
ENERGY 7.2%
825,500 US BJ Services Co. * 34,516,218
331,100 FR Coflexip S.A. (ADR) 12,581,800
344,500 US Smith International Inc. * 17,117,344
854,500 US Weatherford International Inc. 34,126,594
--------------
98,341,956
--------------
HEALTH CARE SECTOR 6.5%
DRUGS AND HOSPITAL SUPPLIES 6.5%
120,900 US Biomet Inc. 4,836,000
204,000 US Forest Laboratories Inc. * 12,533,250
288,500 US Guidant Corp. * 13,559,500
245,800 US PE Biosystems Group 29,572,812
29,000 US Sepracor Inc. * 2,876,438
270,000 US Stryker Corp. 18,798,750
118,700 US Waters Corp. * 6,291,100
--------------
88,467,850
--------------
INTEREST-SENSITIVE SECTOR 1.8%
BANKING 0.7%
223,200 US National Commerce BanCorp 5,063,850
82,100 US Zions Bancorp 4,859,294
--------------
9,923,144
--------------
GENERAL FINANCE 1.0%
183,300 US CIT Group Inc. (Class A) 3,872,213
341,700 US Federated Investors Inc. (Class B) * 6,855,356
82,900 US Franklin Resources Inc. 2,657,981
--------------
13,385,550
--------------
INSURANCE 0.1%
44,700 US InsWeb Corp. * 1,142,644
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 6
<PAGE>
Dresdner RCM MidCap Fund
Portfolio of Investments
December 31, 1999
<TABLE>
<CAPTION>
% OF MARKET VALUE
SHARES COUNTRY NET ASSETS (NOTE 1)
<C> <C> <S> <C> <C>
- ----------------------------------------------------------------------------------------------
EQUITY INVESTMENTS
TECHNOLOGY SECTOR 47.9%
COMPUTERS/OFFICE EQUIPMENT 2.2%
351,700 US Network Appliance Inc.* $ 29,213,081
ELECTRONICS/NEW TECHNOLOGY 27.9%
52,500 US Altera Corp. * 2,602,031
133,002 US Analog Devices Inc. * 12,369,186
258,000 NL ASM Lithography Holding N.V. (ADR) * 29,347,500
855,800 US Atmel Corp. * 25,299,588
435,000 US CIENA Corp. * 25,012,500
247,900 DE Epcos AG (ADR) * 18,515,031
54,000 US Finisar Corp. * 4,853,250
493,000 US Flextronics International Ltd. 22,678,000
361,700 US Jabil Circuit Inc. * 26,404,100
234,800 US JDS Uniphase Corp. * 37,876,175
10,200 US Juniper Networks Inc. * 3,468,000
227,700 US KLA-Tencor Corp. * 25,360,088
547,460 US Maxim Integrated Products Inc. * 25,833,269
211,100 US Microchip Technology Inc. * 14,447,156
439,000 US Molex Inc. (Class A) 19,864,750
42,600 US Optical Coating Laboratory Inc. 12,609,600
114,000 US Sanmina Corp. * 11,385,750
527,500 US Vitesse Semiconductor Corp. * 27,660,781
740,400 US Xilinx Inc. * 33,665,062
--------------
379,251,817
--------------
TECHNOLOGY SERVICES 17.8%
254,500 US Amdocs Ltd. * 8,780,250
323,600 US BEA Systems Inc. * 22,631,775
234,700 US BMC Software Inc. * 18,761,331
88,500 IS Check Point Software Technologies Ltd. * 17,589,375
407,500 US Concord EFS Inc. * 10,493,125
27,800 US DoubleClick Inc. * 7,035,138
72,000 US Electronic Arts Inc. * 6,048,000
140,000 US Exodus Communications Inc. * 12,433,750
46,600 US FreeMarkets Inc. * 15,905,162
111,600 UK Freeserve PLC (ADR) * 10,267,200
60,000 US I2 Technologies Inc. * 11,700,000
163,200 US Intuit * 9,781,800
50,200 US Network Solutions Inc. * 10,921,638
50,400 US RealNetworks Inc. * 6,063,750
163,000 US Siebel Systems Inc. * 13,692,000
170,000 US USWeb Corp. * 7,554,375
296,250 US VERITAS Software Corp. * 42,400,781
608,300 US Webvan Group Inc. * 10,036,950
--------------
242,096,400
--------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 7
<PAGE>
Dresdner RCM MidCap Fund
Portfolio of Investments
December 31, 1999
<TABLE>
<CAPTION>
% OF MARKET VALUE
SHARES COUNTRY NET ASSETS (NOTE 1)
<C> <C> <S> <C> <C>
- ----------------------------------------------------------------------------------------------
EQUITY INVESTMENTS
TELEMEDIA/SERVICES SECTOR 20.8%
BUSINESS SERVICES 3.2%
147,000 US BISYS Group Inc. * $ 9,591,750
664,400 US Fiserv Inc. * 25,454,825
133,000 US G & K Services Inc. (Class A) 4,305,875
183,000 US Sybron International Corp. Wisconsin * 4,517,812
--------------
43,870,262
--------------
COMMUNICATION SERVICES 13.8%
358,500 US Broadwing Inc. 13,219,688
280,000 US CenturyTel Inc. 13,265,000
558,000 US Global TeleSystems Group Inc. * 19,320,750
300,000 US ICG Communications Inc. * 5,625,000
387,700 US Infonet Services Corp. (Class B) * 10,177,125
539,500 US McLeodUSA Inc. (Class A) * 31,763,062
339,500 US NEXTLINK Communications Inc. (Class A) * 28,199,719
316,000 US VoiceStream Wireless Corp. * 44,970,750
317,700 US Western Wireless Corp. (Class A) 21,206,475
--------------
187,747,569
--------------
MEDIA 3.8%
304,100 US Entercom Communications Corp. * 20,070,600
432,500 US Young & Rubicam Inc. 30,599,375
--------------
50,669,975
--------------
TOTAL EQUITY INVESTMENTS (COST $917,845,344) 97.8% 1,327,915,530
--------------
SHORT-TERM INVESTMENTS
MONEY MARKET FUNDS 2.1%
14,159,240 US SSgA Money Market Fund 14,159,240
13,489,132 US SSgA U.S. Government Money Market Fund 13,489,132
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $27,648,372) 2.1% 27,648,372
--------------
TOTAL INVESTMENTS (COST $945,493,716) ** 99.9% 1,355,563,902
OTHER ASSETS LESS LIABILITIES 0.1% 1,925,325
--------------
NET ASSETS 100.0% $1,357,489,227
==============
</TABLE>
- --------------------------------
* Non-income producing security
ADR American Depository Receipt
The accompanying notes are an integral part of the financial statements.
Page 8
<PAGE>
Dresdner RCM MidCap Fund
Portfolio of Investments
December 31, 1999
Tax Information:
** For Federal income tax purposes, cost is $953,392,168 and gross aggregate
unrealized appreciation (depreciation) for all securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $429,594,206
Unrealized depreciation (27,422,472)
-----------
Net unrealized appreciation $402,171,734
===========
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's investments in securities at December 31, 1999 categorized by
country:
<TABLE>
<CAPTION>
% OF NET ASSETS
-------------------------------
COUNTRY SHORT-TERM
COUNTRY CODE EQUITIES AND OTHER TOTAL
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
Canada CA 0.4% 0.4%
France FR 0.9% 0.9%
Germany DE 1.3% 1.3%
Israel IS 1.3% 1.3%
Netherlands NL 2.3% 2.3%
United Kingdom UK 0.8% 0.8%
United States US 90.8% 2.2% 93.0%
------ ------ -----
Total 97.8% 2.2% 100.0%
====== ====== =====
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 9
<PAGE>
Dresdner RCM Small Cap Fund
Management's Performance Review
After a difficult first half, small cap stocks -- and the Dresdner RCM
Small Cap Fund -- came on strong later in 1999. Although the Dresdner RCM Small
Cap Fund lagged the Russell 2000 Index for the full year, with the Fund
returning 12.40% and the Index returning 21.26%, the Fund outperformed the Index
27.06% to 18.45% in the fourth quarter.
MARKET REVIEW
At the beginning of 1999, small cap markets performed poorly as
investors, worried about the global economy, sought the safety and liquidity of
large cap stocks. As the year progressed, however, and economies around the
world revived, the relatively higher growth prospects offered by small caps
started to look more attractive to investors. By the second half of 1999, small
caps actually outperformed large caps. For the full year, the Russell 2000 Index
matched the S&P 500 Index, the first time it has done so since 1994.
FACTORS AFFECTING PERFORMANCE
During the first four months of 1999, the small cap market was narrowly
focused on business-to-consumer Internet companies whose lack of profitability
did not fit the Fund's investment discipline. As a result, the Fund avoided the
dot.com companies to a large degree, as they didn't possess historical or
foreseeable earnings. Since 1970, Dresdner RCM has been committed to the
principle of investing in quality companies with solid earnings, reasonable
valuations and excellent management. However, the Internet has created a huge
population of new companies, causing the Fund's portfolio management team to
revisit its profitability criteria. Although current profitability is not an
absolute requirement, the Fund continues to seek companies that Dresdner RCM
believes will be profitable over the long term.
These expanded investment criteria allowed the Fund to participate in a
wider array of investments. At the same time, the Fund's relative performance
also began to improve when investors shifted their attention to companies with
more tangible business models, such as those engaged in business-to-business
internet commerce as well as building Internet infrastructure. Examples in the
portfolio include CheckFree Holdings, which enables financial institutions to
provide online banking and Actuate Software, which helps companies provide data
and specialized reports for customers in a user-friendly manner.
To be sure, the portfolio continues to hold mature companies that offer
steady earnings growth. In late 1999, the semiconductor area was particularly
strong. The Fund captured the cyclical uptrend in this sector with its
investment in Cypress Semiconductor. Other stocks that did well, such as
Entercom, an owner of radio stations, benefited from the boom in internet
advertising.
A good example of investor appetite for anything related to the Internet
is the Fund's experience with MICROS Systems, a stock that has been held in the
portfolio for several years. MICROS System designs, manufactures, and markets
information systems to hotels, restaurants, casinos, cruise ships and theme
parks. The company dominates its market niche and generates strong financial
results. Revenues and earnings grew 20% and 27% respectively in fiscal year
1999. Dresdner RCM's Grassroots-SM- Research surveys confirmed that customers
were very satisfied with the company's products and that demand stayed strong
during downturns in the hospitality business. As a result, the Fund added to its
position in MICROS Systems towards the beginning of the year, and the stock
performed reasonably well. However, when a side venture came to light, in which
the company developed an online service for corporate clients to book travel and
hotel stays, the stock doubled even though the activity had virtually no impact
on the company's revenues. Dresdner RCM began selling the stock in September,
based on the firm's sell criteria.
The Fund's more difficult areas included health care services such as
assisted-living, dialysis and contract research, where government intervention
is affecting their prospects. In addition, the Fund was underweighted in
emerging health care technologies such as biotechnology and gene therapy, and
thus was not able to participate fully in their growth.
Page 10
<PAGE>
Dresdner RCM Small Cap Fund
Management's Performance Review
OUTLOOK
For the Internet to deliver on its great promise, it must be easier and
more attractive to use for business as well as consumers. Technology companies
that can deliver a positive internet experience are likely to perform very well.
Other areas of interest for the Fund include energy services, as the major oil
companies increase spending on exploration and production. In retailing,
consumer electronics is becoming an attractive area as the conversion from
analog to digital audio, video and photographic products drive revenues and
profits. Finally, the Fund is increasingly investing in emerging health care
technologies.
Dresdner RCM's management team is gratified that investors are no longer
penalizing companies based solely on market capitalization. In this period of
global calm, small cap stocks have every opportunity to outperform the S&P 500.
Page 11
<PAGE>
Dresdner RCM Small Cap Fund
Total Return Index Comparison(b)
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
RCM SMALL CAP FUND
<S> <C> <C>
Fund Russell 2000 Index (a)
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
7/31/94 $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
11/30/95 $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
8/31/96 $20,592 $18,923
9/30/96 $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
1/31/97 $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
1/31/98 $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
7/31/98 $28,339 $24,404
8/31/98 $20,989 $19,664
9/30/98 $22,531 $21,204
10/31/98 $24,290 $22,069
11/30/98 $26,483 $23,226
12/31/98 $28,411 $24,663
1/31/99 $27,925 $24,991
2/28/99 $24,283 $22,967
3/31/99 $24,010 $23,325
4/30/99 $24,738 $25,415
5/31/99 $25,861 $25,786
6/30/99 $27,197 $26,952
7/31/99 $27,318 $26,214
8/31/99 $25,770 $25,244
9/30/99 $25,133 $25,249
10/31/99 $24,010 $25,352
11/30/99 $28,229 $26,866
12/31/99 $31,934 $29,912
</TABLE>
PERFORMANCE(b)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
CUMULATIVE
SINCE SINCE
SMALL CAP FUND 1 YEAR 3 YEARS 5 YEARS INCEPTION INCEPTION
<S> <C> <C> <C> <C> <C>
Average Annual Total
Return(c) 12.40% 10.74% 19.60% 15.62% 219.34%
Russell 2000 Index
Average Annual Total
Return(a) 21.26% 13.08% 16.69% 14.68% 199.12%
</TABLE>
The data above represents past performance of the Fund and may not
indicate 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
Portfolio of Investments
December 31, 1999
<TABLE>
<CAPTION>
% OF MARKET VALUE
SHARES COUNTRY NET ASSETS (NOTE 1)
<C> <C> <S> <C> <C>
- --------------------------------------------------------------------------------------------
EQUITY INVESTMENTS
CONSUMER DURABLES SECTOR 0.4%
AUTOMOTIVE RELATED 0.4%
86,900 US Dura Automotive Systems Inc. * $ 1,515,319
40,100 US Keystone Automotive Industries Inc. * 235,587
------------
1,750,906
------------
CONSUMER NON-DURABLES SECTOR 10.9%
HOUSEHOLD/RELATED NON-DURABLES 0.8%
487,125 US French Fragrances Inc. * 3,135,867
LEISURE TIME PRODUCTS/SERVICES 2.9%
143,300 US Churchill Downs Inc. 3,233,206
96,000 US Micros Systems Inc. * 7,104,000
59,000 US P.F. Chang's China Bistro Inc. * 1,467,625
------------
11,804,831
------------
RETAIL TRADE 7.2%
366,200 US CSK Auto Corp. * 6,408,500
255,300 US InterTAN Inc. * 6,669,712
25,700 US Pacific Sunwear of California Inc. * 819,188
142,300 US Pantry Inc. * 2,009,988
79,500 US REX Stores Corp. * 2,782,500
551,000 US Trans World Entertainment Corp. * 5,785,500
184,800 US Ultimate Electronics Inc. * 4,573,800
------------
29,049,188
------------
CYCLICAL/CAPITAL GOODS SECTOR 4.6%
AEROSPACE/DEFENSE 1.4%
135,900 US L-3 Communications Holdings Inc. * 5,656,838
BUILDING/CONSTRUCTION 2.5%
270,900 US Integrated Electrical Services * 2,725,931
185,000 US Tetra Tech Inc. * 2,844,375
267,400 US Wilmar Industries Inc. * 4,646,075
------------
10,216,381
------------
RAW/BASIC MATERIALS 0.7%
164,100 US Metals USA Inc. * 1,394,850
155,200 US Oregon Steel Mills Inc. 1,231,900
------------
2,626,750
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 13
<PAGE>
Dresdner RCM Small Cap Fund
Portfolio of Investments
December 31, 1999
<TABLE>
<CAPTION>
% OF MARKET VALUE
SHARES COUNTRY NET ASSETS (NOTE 1)
<C> <C> <S> <C> <C>
- --------------------------------------------------------------------------------------------
EQUITY INVESTMENTS (CONTINUED)
ENERGY SECTOR 7.0%
ENERGY 7.0%
163,100 US Cal Dive International Inc. * $ 5,402,688
19,400 FR Coflexip S.A. (ADR) 737,200
209,700 NL Core Laboratories N.V. * 4,207,106
453,000 US National-Oilwell Inc. * 7,106,437
41,900 US Patterson Energy Inc. * 544,700
578,900 US Superior Energy Services Inc. * 3,907,575
415,300 US Tuboscope Inc. * 6,592,888
------------
28,498,594
------------
HEALTH CARE SECTOR 8.2%
DRUGS AND HOSPITAL SUPPLIES 5.2%
112,600 US Bone Care International Inc. * 1,421,575
109,400 US CIMA Labs Inc. * 1,429,038
55,900 US INAMED Corp. * 2,452,612
132,500 US Inhale Therapeutic Systems Inc. * 5,639,531
67,600 US Invitrogen Corp. * 4,056,000
68,000 US Maxygen Inc. * 4,828,000
65,700 US Titan Pharmaceuticals Inc. * 1,248,300
------------
21,075,056
------------
HEALTH CARE SERVICES 3.0%
44,100 US Centennial Healthcare Corp. * 132,300
138,000 US IMPATH Inc. * 3,510,375
156,600 US MedicaLogic Inc. * 3,288,600
32,800 US Renal Care Group Inc. * 766,700
355,000 US Veterinary Centers of America Inc. * 4,570,625
------------
12,268,600
------------
INTEREST-SENSITIVE SECTOR 4.8%
BANKING 0.3%
26,000 US Silicon Valley Bancshares * 1,287,000
GENERAL FINANCE 2.8%
166,100 US Affiliated Managers Group Inc. * 6,716,669
125,000 US eSPEED Inc. (Class A) * 4,445,312
------------
11,161,981
------------
INSURANCE 1.7%
268,000 US InsWeb Corp. * 6,850,750
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 14
<PAGE>
Dresdner RCM Small Cap Fund
Portfolio of Investments
December 31, 1999
<TABLE>
<CAPTION>
% OF MARKET VALUE
SHARES COUNTRY NET ASSETS (NOTE 1)
<C> <C> <S> <C> <C>
- --------------------------------------------------------------------------------------------
EQUITY INVESTMENTS
TECHNOLOGY SECTOR 39.8%
COMPUTERS/OFFICE EQUIPMENT 4.5%
91,900 US Black Box Corp. * $ 6,157,300
74,000 US Insight Enterprises Inc. * 3,006,250
224,100 US Pinnacle Systems Inc. * 9,118,069
------------
18,281,619
------------
ELECTRONICS/NEW TECHNOLOGY 21.1%
353,000 US Actel Corp. * 8,472,000
172,400 US Advanced Energy Industries Inc. * 8,490,700
261,300 US Artesyn Technologies Inc. * 5,487,300
17,100 IS AudioCodes Ltd. * 1,573,200
263,100 US Burr-Brown Corp. * 9,504,487
85,100 US Carrier Access Corp. * 5,728,294
56,600 US Crossroads Systems Inc. * 4,782,700
105,800 US Cymer Inc. * 4,866,800
568,900 US Cypress Semiconductor Corp. * 18,418,137
270,200 US Digital Microwave Corp. * 6,332,812
93,300 US GlobeSpan Inc. * 6,076,163
113,900 US Hadco Corp. * 5,808,900
------------
85,541,493
------------
TECHNOLOGY SERVICES 14.2%
51,500 US Active Software Inc. * 4,738,000
131,900 US Actuate Corp. * 5,655,212
50,300 US Allaire Corp. * 7,359,519
208,900 US BindView Development Corp. * 10,379,719
130,500 US Exchange Applications Inc. * 7,291,687
23,200 US Expedia Inc. (Class A) * 812,000
39,700 US InterVu Inc. * 4,168,500
64,200 US Mission Critical Software Inc. * 4,494,000
15,200 US NetIQ Corp. * 791,350
10,200 US Pegasus Systems Inc. * 615,188
54,900 US Primus Knowledge Solutions Inc. * 2,487,656
150,000 US TSI International Software Ltd. * 8,493,750
------------
57,286,581
------------
TELEMEDIA/SERVICES SECTOR 23.6%
BUSINESS SERVICES 10.5%
4,900 US BISYS Group Inc. * 319,725
39,300 US CheckFree Holdings Corp. * 4,106,850
198,100 US Choicepoint Inc. * 8,196,387
45,000 US G & K Services Inc. (Class A) 1,456,875
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 15
<PAGE>
Dresdner RCM Small Cap Fund
Portfolio of Investments
December 31, 1999
<TABLE>
<CAPTION>
% OF MARKET VALUE
SHARES COUNTRY NET ASSETS (NOTE 1)
<C> <C> <S> <C> <C>
- --------------------------------------------------------------------------------------------
EQUITY INVESTMENTS (CONTINUED)
BUSINESS SERVICES (CONTINUED)
258,600 US Modis Professional Services Inc. * $ 3,685,050
637,100 US Personal Group of America Inc. * 6,450,638
865,500 US Romac International Inc. * 11,630,156
246,200 US School Specialty Inc. * 3,723,775
245,400 US Wackenhut Corrections Corp. * 2,868,113
------------
42,437,569
------------
COMMUNICATION SERVICES 9.4%
291,300 US Allied Riser Communications Corp. * 6,026,269
95,500 US High Speed Access Corp. * 1,683,188
288,000 US ICG Communications Inc. * 5,400,000
138,800 US Intermedia Communications of Florida
Inc. * 5,387,175
79,700 US Network Access Solutions Corp. * 2,630,100
223,000 US SoftNet Systems Inc. * 5,602,875
157,600 US Sykes Enterprises Inc. * 6,914,700
105,700 US Z-Tel Technologies Inc. * 4,267,637
------------
37,911,944
------------
MEDIA 3.7%
120,900 US Entercom Communications Corp. * 7,979,400
95,700 US SFX Entertainment Inc. (Class A) * 3,463,144
253,800 US Tickets.com Inc. * 3,632,512
------------
15,075,056
------------
TOTAL EQUITY INVESTMENTS (COST $318,880,047) 99.3% 401,917,004
------------
SHORT-TERM INVESTMENTS
MONEY MARKET FUNDS 0.2%
613,748 US SSgA Money Market Fund 613,748
166,198 US SSgA U.S. Government Money Market Fund 166,198
------------
TOTAL SHORT-TERM INVESTMENTS (COST $779,946) 0.2% 779,946
------------
TOTAL INVESTMENTS (COST $319,659,993)** 99.5% 402,696,950
OTHER ASSETS LESS LIABILITIES 0.5% 1,996,384
------------
NET ASSETS 100.0% $404,693,334
============
</TABLE>
- --------------------------------
* Non-income producing security
ADR American Depository Receipt
The accompanying notes are an integral part of the financial statements.
Page 16
<PAGE>
Dresdner RCM Small Cap Fund
Portfolio of Investments
December 31, 1999
Tax Information:
** For Federal income tax purposes, cost is $323,018,391 and gross aggregate
unrealized appreciation (depreciation) for all securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $111,311,705
Unrealized depreciation (31,633,146)
------------
Net unrealized appreciation $ 79,678,559
============
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's investments in securities at December 31, 1999 categorized by
country:
<TABLE>
<CAPTION>
% OF NET ASSETS
-------------------------------
COUNTRY SHORT-TERM
COUNTRY CODE EQUITIES AND OTHER TOTAL
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------
France FR 0.2% 0.2%
Israel IS 0.4% 0.4%
Netherlands NL 1.0% 1.0%
United States US 97.7% 0.7% 98.4%
------ ------ -----
Total 99.3% 0.7% 100.0%
====== ====== =====
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 17
<PAGE>
Dresdner RCM Capital Funds, Inc.
Statements of Assets and Liabilities
December 31, 1999
(All numbers in thousands except net asset values)
<TABLE>
<CAPTION>
MIDCAP SMALL CAP
FUND FUND
---------- ---------
<S> <C> <C>
ASSETS:
Investments at cost $ 945,494 $319,660
========== ========
Investments at value (Note 1) $1,355,564 $402,697
Cash 3,250 563
Collateral for securities on loan (Note 4) 79,569 24,539
Receivables:
Investments sold 8 1,708
Fund shares sold 1,098 63
Dividends 206 96
Interest 198 84
---------- --------
Total Assets 1,439,893 429,750
---------- --------
LIABILITIES:
Payables:
Investments purchased 916 119
Collateral for securities on loan (Note 4) 79,569 24,539
Fund shares repurchased 1,076 44
Management fees (Note 2) 793 329
Other 50 26
---------- --------
Total Liabilities 82,404 25,057
---------- --------
NET ASSETS $1,357,489 $404,693
========== ========
NET ASSETS CONSIST OF:
Paid-in capital (Note 3) $ 896,401 $362,566
Accumulated net realized gain (loss) on investments
and foreign currency transactions 51,018 (40,910)
Net unrealized appreciation on investments 410,070 83,037
---------- --------
NET ASSETS $1,357,489 $404,693
========== ========
SHARES OUTSTANDING 169,277 39,559
========== ========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
SHARE $ 8.02 $ 10.23
========== ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 18
<PAGE>
Dresdner RCM Capital Funds, Inc.
Statements of Operations
For the Year Ended December 31, 1999
(All numbers in thousands)
<TABLE>
<CAPTION>
MIDCAP SMALL CAP
FUND FUND
-------- ---------
<S> <C> <C>
INVESTMENT INCOME: (NOTE 1)
Income:
Dividends $ 4,170 $ 760
Interest 1,221 559
Foreign tax withheld (33) --
-------- --------
Total investment income 5,358 1,319
-------- --------
Expenses:
Investment management fees (Note 2) 7,410 4,309
Custodian fees 150 80
Miscellaneous expenses 1 2
-------- --------
Total expenses 7,561 4,391
-------- --------
Net investment loss (2,203) (3,072)
-------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments 234,002 (32,599)
Net change in unrealized appreciation on investments 277,202 58,242
-------- --------
Net realized and unrealized gain 511,204 25,643
-------- --------
NET INCREASE IN NET ASSETS FROM OPERATIONS $509,001 $ 22,571
======== ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 19
<PAGE>
Dresdner RCM Capital Funds, Inc.
Statements of Changes in Net Assets
(All numbers in thousands)
<TABLE>
<CAPTION>
MIDCAP FUND SMALL CAP FUND
-------------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment loss $ (2,203) $ (137) $ (3,072) $ (3,563)
Net realized gain (loss) on investments and foreign
currency transactions 234,002 115,271 (32,599) 87,204
Net change in unrealized appreciation (depreciation)
on investments 277,202 27,337 58,242 (65,283)
---------- ---------- --------- ---------
Net increase in net assets from operations 509,001 142,471 22,571 18,358
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments (180,650) (158,525) -- (102,478)
In excess of realized gain on investments -- -- (10,485) --
---------- ---------- --------- ---------
Total distributions to shareholders (180,650) (158,525) (10,485) (102,478)
NET INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS 53,875 30,492 (165,358) (19,326)
---------- ---------- --------- ---------
TOTAL INCREASE (DECREASE) IN NET ASSETS 382,226 14,438 (153,272) (103,446)
NET ASSETS:
Beginning of year 975,263 960,825 557,965 661,411
---------- ---------- --------- ---------
End of year $1,357,489 $ 975,263 $ 404,693 $ 557,965
========== ========== ========= =========
FUND SHARE TRANSACTIONS:
DOLLAR AMOUNTS
Sold $ 155,687 $ 127,964 $ 48,161 $ 111,487
Issued to shareholders in reinvestment of
distributions 180,435 156,239 10,459 100,547
Repurchased (282,247) (253,711) (223,978) (231,360)
---------- ---------- --------- ---------
Net increase (decrease) $ 53,875 $ 30,492 $(165,358) $ (19,326)
========== ========== ========= =========
SHARE AMOUNTS
Sold 23,371 21,102 5,583 10,548
Issued to shareholders in reinvestment of
distributions 24,616 29,535 1,108 11,705
Repurchased (44,732) (38,770) (26,739) (19,362)
---------- ---------- --------- ---------
Net increase (decrease) 3,255 11,867 (20,048) 2,891
========== ========== ========= =========
PURCHASES AND SALES OF INVESTMENT SECURITIES (EXCLUDING
SHORT-TERM SECURITIES):
Purchases of securities $1,910,060 $1,517,508 $ 486,026 $ 738,646
Proceeds from sales of securities 1,997,527 1,686,061 619,777 866,195
</TABLE>
The accompanying notes are an integral part of the financial statements.
Page 20
<PAGE>
Dresdner RCM Capital Funds, Inc.
Financial Highlights
For a share outstanding throughout each fiscal year:
<TABLE>
<CAPTION>
DRESDNER RCM MIDCAP FUND
-------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------
1999(2) 1998(2) 1997(2) 1996(1)(2) 1995
------- -------- -------- ---------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year $ 5.87 $ 6.23 $ 6.40 $ 9.13 $ 7.89
------ ------ ------ ------ ------
Income from investment operations:
Net investment income (loss) (0.01) -- (0.01) (0.01) 0.02
Net realized and unrealized gain on
investments 3.42 0.81 1.08 1.59 2.66
------ ------ ------ ------ ------
Total from investment operations 3.41 0.81 1.07 1.58 2.68
Less distributions:
From net investment income -- -- -- -- (0.02)
From net realized gain on investments (1.26) (1.17) (1.24) (4.31) (1.42)
------ ------ ------ ------ ------
Total distributions (1.26) (1.17) (1.24) (4.31) (1.44)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR $ 8.02 $ 5.87 $ 6.23 $ 6.40 $ 9.13
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL RETURN (3) 60.18% 15.06% 17.50% 19.07% 34.53%
------ ------ ------ ------ ------
------ ------ ------ ------ ------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of year (in millions) $1,357 $ 975 $ 961 $ 896 $1,325
------ ------ ------ ------ ------
------ ------ ------ ------ ------
Ratio of expenses to average net assets 0.77% 0.76% 0.76% 0.84% 0.76%
------ ------ ------ ------ ------
------ ------ ------ ------ ------
Ratio of net investment income (loss) to average
net assets (0.22)% (0.01)% (0.17)% (0.12)% 0.22%
------ ------ ------ ------ ------
------ ------ ------ ------ ------
Portfolio turnover 198.17% 168.24% 155.10% 115.89% 96.46%
------ ------ ------ ------ ------
------ ------ ------ ------ ------
</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.
<TABLE>
<CAPTION>
DRESDNER RCM SMALL CAP FUND
-------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------
1999(2) 1998(2) 1997(2) 1996(1)(2) 1995
------- -------- -------- ---------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year $ 9.36 $11.66 $11.77 $11.35 $ 9.42
------ ------ ------ ------ ------
Income from investment operations:
Net investment loss (0.06) (0.07) (0.08) (0.08) (0.04)
Net realized and unrealized gain on
investments 1.20 --(3) 2.29 3.82 3.21
------ ------ ------ ------ ------
Total from investment operations 1.14 (0.07) 2.21 3.74 3.17
Less distributions:
From net realized gain on investments -- (2.23) (2.32) (3.32) (1.24)
In excess of realized gain on investments (0.27) -- -- -- --
------ ------ ------ ------ ------
Total distributions (0.27) (2.23) (2.32) (3.32) (1.24)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR $10.23 $ 9.36 $11.66 $11.77 $11.35
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL RETURN (4) 12.40% 1.11% 19.49% 34.39% 34.08%
------ ------ ------ ------ ------
------ ------ ------ ------ ------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of year (in millions) $ 405 $ 558 $ 661 $ 569 $ 410
------ ------ ------ ------ ------
------ ------ ------ ------ ------
Ratio of expenses to average net assets 1.02% 1.01% 1.02% 1.00% 1.01%
------ ------ ------ ------ ------
------ ------ ------ ------ ------
Ratio of net investment loss to average net assets (0.71)% (0.61)% (0.68)% (0.58)% (0.22)%
------ ------ ------ ------ ------
------ ------ ------ ------ ------
Portfolio turnover 116.42% 131.85% 117.64% 117.00% 83.91%
------ ------ ------ ------ ------
------ ------ ------ ------ ------
</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) The amount shown for a share outstanding does not correspond with the
aggregate net gain on investments for the period due to timing of sales and
repurchases of Fund shares in relation to fluctating market values of the
investments of the Fund.
(4) Total return measures the change in value of an investment over the period
indicated.
The accompanying notes are an integral part of the financial statements.
Page 21
<PAGE>
Dresdner RCM Capital Funds, Inc.
Notes to Financial Statements
December 31, 1999
1. SIGNIFICANT ACCOUNTING POLICIES
The Dresdner RCM Capital Funds, Inc. ("Capital Company") is organized as
a Maryland corporation and is registered as an open-end management investment
company under the Investment Company Act of 1940 (the "1940 Act"), as amended.
The Capital Company consists of three series. The Dresdner RCM MidCap Fund
("MidCap Fund"), formerly known as the Dresdner RCM Growth Equity Fund, and the
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." The Dresdner RCM International Growth Equity Fund ("International
Fund") is a non-diversified, no load series of the Capital Company. The
International Fund's financial statements and financial highlights are included
in the annual report of the 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 amounts in the financial statements. Actual results may
differ from these estimates.
A. PORTFOLIO VALUATION:
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 is valued at the closing bid
price on such day. If no bid price is quoted on such day, then the security is
valued by such method as the Board of Directors or a duly constituted committee
of the Board of Directors of the Capital Company determines 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 are 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 are 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 are valued by
whatever means the Board of Directors or 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, RELATED INVESTMENT INCOME AND EXPENSES:
Security transactions are recorded as of the date of purchase or sale.
Dividend income is recorded on the ex-dividend date and interest income is
recorded on the accrual basis and includes accretion of discount and
amortization of premium. Realized gains and losses on security transactions are
determined on the identified cost basis for both financial statement and federal
income tax purposes. Each Fund bears expenses incurred specifically on its
behalf as well as a portion of any general expenses.
C. FOREIGN CURRENCY TRANSACTIONS AND FOREIGN INVESTMENTS:
The books and records of each of the Funds are maintained in U.S.
dollars. The value of securities, currencies, and other assets and liabilities
denominated in currencies other than U.S. dollars are translated into U.S.
dollars based upon foreign exchange rates prevailing at the end of the period.
Purchases and sales of investments are translated at the contracted currency
exchange rates established at the time of the trade. Income and expenses are
translated at the prevailing exchange rates on the respective dates of such
transactions.
Page 22
<PAGE>
Dresdner RCM Capital Funds, Inc.
Notes to Financial Statements
December 31, 1999
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Net realized currency gains and losses include foreign currency gains
and losses between trade date and settlement date and foreign currency
translations. 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.
Investing in securities of foreign companies and foreign governments
involves special risks and considerations not typically associated with
investing in U.S. companies and securities of the U.S. Government. These risks
include revaluation of currencies and the risk of appropriation. Moreover, the
markets for securities of many foreign companies and foreign governments may be
less liquid and the prices of such securities may be more volatile than those of
comparable U.S. companies and the U.S. Government.
D. FEDERAL INCOME TAXES:
Each Fund is a separate entity for federal income tax purposes. Each
Fund intends 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 each Fund 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 income or excise taxes on income and
capital gains. As of December 31, 1999, the Small Cap Fund had a capital loss
carryover of $29,437,870, which will expire on December 31, 2007.
E. DISTRIBUTIONS:
Income dividends and capital gain distributions (if any) are declared
and distributed to shareholders annually. Distributions to shareholders are
recorded by the Funds on the ex-dividend date. Income dividends and capital gain
distributions are determined in accordance with Federal income tax regulations
which may differ from generally accepted accounting principles, and only
distributions in excess of tax basis earnings and profits are reported in the
financial statements as a return of capital. Differences in the recognition or
classification of income between the financial statements and tax earnings and
profits which result in temporary over-distributions for financial statement
purposes are classified as distributions in excess of net investment income or
net realized gain on investments. 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. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Dresdner RCM Global Investors LLC ("Dresdner RCM") serves as the Funds'
investment manager, subject to the authority of the Board of Directors. The
MidCap Fund and Small Cap Fund pay investment management fees monthly at
annualized rates of 0.75% and 1.00%, respectively, of each Fund's average daily
net assets.
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 the
custodian; and payment of investment management fees due to Dresdner RCM.
Dresdner RCM is responsible for all other expenses incurred by the MidCap Fund
and the Small Cap Fund.
On December 31, 1999, the Dresdner RCM Profit Sharing Plan,
participation in which is limited to employees of Dresdner RCM, owned 603,695
shares of the MidCap Fund and 279,639 shares of the Small Cap Fund.
Page 23
<PAGE>
Dresdner RCM Capital Funds, Inc.
Notes to Financial Statements
December 31, 1999
2. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
At December 31, 1999, 6 shareholders in the MidCap Fund and
4 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 60.74% of the Mid Cap Fund and 48.54% of the Small Cap Fund.
3. CAPITAL SHARES
At December 31, 1999, 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 MidCap Fund and 100,000,000 were
classified as shares of the Small Cap Fund.
4. SECURITIES LENDING
Effective October 31, 1999, the MidCap Fund and the Small Cap Fund
entered into a Securities Lending Agreement with Morgan Stanley & Co.
Incorporated ("Morgan"). The Funds receive cash collateral equal to at least
102% of the current market value of the loaned securities. The Funds invest the
cash collateral in repurchase agreements through State Street Bank & Trust
Company pursuant to guidelines approved by the Capital Company's Board of
Directors. Income earned on the collateral is paid to Morgan monthly. The Funds
receive a fee, payable monthly, negotiated by the Funds and Morgan, based on the
number and duration of the lending transactions. For the year ended
December 31, 1999, net securities lending income was $304,166 and $112,500 for
the MidCap Fund and the Small Cap Fund, respectively, and is included in
interest income.
At December 31, 1999, securities with a market value of $78,008,644 and
$24,057,906 were on loan to brokers for the MidCap Fund and the Small Cap Fund,
respectively. The loans were collateralized by repurchase agreements of
$79,568,814 and $24,539,063 for the MidCap Fund and the Small Cap Fund,
respectively. As with other extensions of credit, the Fund may bear the risk of
delay in the recovery of the loaned securities or in the foreclosure on
collateral.
5. DIRECTORS' FEES
Each Director who is not an interested person of the Capital Company (as
defined in the 1940 Act) receives an annual retainer of $9,000, plus $1,500 for
each Board meeting attended for each series, and $500 for each committee meeting
attended for each series.
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 Dresdner RCM Global Funds, Inc., 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 24
<PAGE>
Report of Independent Accountants
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF THE DRESDNER RCM MIDCAP FUND AND
THE DRESDNER RCM SMALL CAP FUND:
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of the Dresdner RCM
MidCap Fund, formerly the Dresdner RCM Growth Equity Fund, and the Dresdner RCM
Small Cap Fund (two of the Funds constituting the Dresdner RCM Capital Funds,
Inc.), (hereafter referred to as the "Funds") at December 31, 1999, the results
of their operations, the changes in their net assets and the financial
highlights for each of the periods indicated therein, in conformity with
accounting principles generally accepted in the United States. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Funds' management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with auditing
standards generally accepted in the United States which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1999 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 18, 2000
Page 25
<PAGE>
TAX INFORMATION (UNAUDITED)
On December 20, 1999 distributions were paid from investment operations
for the Funds. The dividends were recorded on December 16, 1999, to shareholders
of record on December 15, 1999.
<TABLE>
<CAPTION>
ORDINARY LONG-TERM TOTAL
FUND INCOME CAPITAL GAIN DISTRIBUTIONS
- ----------------------------------- ------------ ------------ -------------
<S> <C> <C> <C>
MidCap Fund
Per Share $ 1.19 $ 0.07 $ 1.26
Amount $169,726,726 $10,923,093 $180,649,819
Small Cap Fund
Per Share $ 0.27 $ 0.00 $ 0.27
Amount $ 10,484,886 $ 0 $ 10,484,886
</TABLE>
Page 26
<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
225 Franklin Street
Boston, Massachusetts 02110
DISTRIBUTOR
Funds Distributor, Inc.
60 State Street, Suite 1300
Boston, Massachusetts 02109
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
555 South Flower Street
Los Angeles, California 90071
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
160 Federal Street
Boston, Massachusetts 02110
Page 27
<PAGE>
This report is not authorized for distribution to prospective
investors unless preceded or accompanied by a Dresdner RCM Capital
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
as a recommendation to purchase.
Grassroots-SM- Research is a division of Dresdner RCM Global
Investors LLC ("Dresdner RCM"). The information and opinions expressed
represent the judgement of Dresdner RCM. Dresdner RCM and its
affiliates, officers, employees or clients may effect or have effected
transactions for their own account(s) in the securities mentioned here
or in any related investments. Accordingly, information may be
available to Dresdner RCM that is not reflected at this time. The
information and opinions have been compiled or arrived at from sources
believed to be reliable and in good faith, but no representation or
warranty, express or implied, is made as to their accuracy,
completeness or correctness. Dresdner RCM accepts no liability
whatsoever for any direct or consequential loss or damage arising from
your use of this information. Research data used by Grassroots-SM- to
generate Grassroots-SM- Research recommendations, is received from
reporters who work as independent contractors for broker-dealers who
supply research to Dresdner RCM in connection with broker services.
DISTRIBUTOR: DRESDNER RCM DISTRIBUTORS, A DIVISION OF FUNDS
DISTRIBUTOR INC.
