<PAGE> 1
[ZURICH LOGO]
Zurich Money Funds '99
Semiannual Report To Shareholders For The Period Ended January 31, 1999
<PAGE> 2
table of contents
<TABLE>
<CAPTION>
SUBJECT PAGE
<S> <C> <C>
FUND OBJECTIVES 1
- ------------------------------------------------------------------------
PERFORMANCE SUMMARY 2
- ------------------------------------------------------------------------
VARIABLES AFFECTING PERFORMANCE 5
- ------------------------------------------------------------------------
PERFORMANCE UPDATE 6
- ------------------------------------------------------------------------
TERMS TO KNOW 9
- ------------------------------------------------------------------------
PORTFOLIO COMPOSITION 10
- ------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS 11
- ------------------------------------------------------------------------
FINANCIAL STATEMENTS 28
- ------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 34
- ------------------------------------------------------------------------
</TABLE>
<PAGE> 3
fund objectives
Zurich Money Funds (the "Trust") is an open-end, diversified, management
investment company offering a choice of three investment funds. Each fund
invests in high quality short-term money market instruments consistent with its
specific objective as outlined below. Like all money market funds, an investment
in these funds is not insured or guaranteed by the FDIC or any other government
agency. Although money funds seek to preserve your investment at $1.00 per
share, it is possible to lose money.
ZURICH MONEY MARKET FUND
This fund seeks maximum current income to the extent consistent with stability
of principal by investing primarily in commercial paper, securities of the U.S.
Government, its agencies, and bank certificates of deposit.
ZURICH GOVERNMENT MONEY FUND
This fund seeks maximum current income to the extent consistent with stability
of principal by investing exclusively in obligations issued or guaranteed by the
U.S. Government, its agencies or instrumentalities.
ZURICH TAX-FREE MONEY FUND
This fund seeks maximum current income that is exempt from federal income taxes
to the extent consistent with stability of principal from a portfolio of
short-term, high quality tax-exempt municipal securities.
--
1
<PAGE> 4
PERFORMANCE SUMMARY
- --------------------------------------------------------------------------------
ZURICH MONEY MARKET FUND
- --------------------------------------------------------------------------------
YIELD COMPARISON
Zurich Money Market Fund is compared to its IBC Financial Data category -- The
First Tier Money Fund Average which consists of all non-institutional taxable
money market funds investing in only first tier (highest rating) securities
tracked by IBC Financial Data. Returns are historical and do not guarantee
future results. Fund yields fluctuate.
7-day yield is the annualized net investment income per share for the period
shown. Gains or losses are not included.
[PERFORMANCE GRAPHS]
Fund Yield vs. Government Money Fund Average
<TABLE>
<CAPTION>
Weekly 7-Day Average Yield
FUND YIELD FIRST TIER MONEY MARKET FUNDS
---------- -----------------------------
<S> <C> <C>
8/4/98 5.29 5.04
5.32 5.03
5.32 5.04
5.32 5.03
5.30 5.04
5.29 5.02
5.31 5.04
5.30 5.01
5.26 4.99
5.22 4.95
5.20 4.87
5.10 4.82
5.11 4.74
5.06 4.77
5.06 4.72
5.06 4.73
5.04 4.64
4.98 4.67
4.99 4.63
4.99 4.65
4.98 4.64
5.00 4.62
5.02 4.66
4.96 4.57
4.88 4.54
1/26/99 4.86 4.46
</TABLE>
LIPPER RANKING
Lipper, Inc. rankings are based upon changes in net asset value with all
dividends reinvested for the periods indicated as of 1/31/99. Rankings are
historical and do not guarantee future performance. The Lipper category used for
comparison is the Lipper Money Market Instrument Fund category.
[PERFORMANCE GRAPHS]
<TABLE>
<CAPTION>
LIPPER RANKING
<S> <C> <C>
Top Fund #1 of 35 funds 20 years
Top 9% #12 of 128 funds 10 years
Top 11% #22 of 201 funds 5 years
Top 12% #36 of 311 funds 1 year
</TABLE>
10-YEAR PERFORMANCE
This chart shows the value of a hypothetical $10,000 investment in Zurich Money
Market Fund over the past 10 years with all dividends reinvested. The returns
shown are historical and do not guarantee future performance.
[PERFORMANCE GRAPHS]
10-Year Performance
<TABLE>
<CAPTION>
Performance of a $10,000 Hypothetical Investment
10-YEAR PERFORMANCE
-------------------
<S> <C>
2/1/89 10000.00
10917.00
11807.00
12484.00
12908.00
13278.00
13836.00
14620.00
15381.00
16210.00
1/31/99 17051.00
</TABLE>
2
<PAGE> 5
ZURICH MONEY FUNDS PERFORMANCE SUMMARY, CONTINUED
- --------------------------------------------------------------------------------
ZURICH GOVERNMENT MONEY FUND
- --------------------------------------------------------------------------------
YIELD COMPARISON
Zurich Government Money Fund is compared to its IBC Financial Data category --
The Government Money Fund Average which consists of all non-institutional
government money market funds tracked by IBC Financial Data. Returns are
historical and do not guarantee future results. Fund yields fluctuate.
7-day yield is the annualized net investment income per share for the period
shown. Gains or losses are not included.
[PERFORMANCE GRAPHS]
Fund Yield vs. First Tier Money Fund Average
<TABLE>
<CAPTION>
Weekly 7-Day Average Yield
FUND YIELD GOVERNMENT MONEY MARKET FUNDS
---------- -----------------------------
<S> <C> <C>
8/4/98 5.31 4.99
5.27 4.94
5.29 4.96
5.29 4.93
5.28 4.97
5.24 4.94
5.26 4.98
5.23 4.89
5.19 4.84
5.03 4.75
4.93 4.63
4.81 4.55
4.74 4.41
4.79 4.59
4.85 4.46
4.77 4.52
4.78 4.31
4.80 4.42
4.78 4.33
4.76 4.41
4.78 4.37
4.82 4.36
4.78 4.38
4.73 4.29
4.69 4.33
1/26/99 4.64 4.25
</TABLE>
LIPPER RANKING
Lipper, Inc. rankings are based upon changes in net asset value with all
dividends reinvested for the periods indicated as of 1/31/99. Rankings are
historical and do not guarantee future performance. The Lipper category used for
comparison is the Lipper Government Money Market Fund category.
[PERFORMANCE GRAPHS]
<TABLE>
<CAPTION>
LIPPER RANKING
<S> <C> <C>
Top 6% #3 of 48 funds 10 years
Top 7% #6 of 85 funds 5 years
Top 12% #14 of 114 funds 1 year
</TABLE>
10-YEAR PERFORMANCE
This chart shows the value of a hypothetical $10,000 investment in Zurich
Government Money Fund over the past 10 years, with all dividends reinvested. The
returns shown are historical and do not guarantee future performance.
[PERFORMANCE GRAPHS]
10-Year Performance
<TABLE>
<CAPTION>
Performance of a $10,000 Hypothetical Investment
10-YEAR PERFORMANCE
-------------------
<S> <C>
2/1/89 10000.00
10911.00
11785.00
12446.00
12876.00
13250.00
13806.00
14591.00
15349.00
16171.00
1/31/99 16996.00
</TABLE>
3
<PAGE> 6
ZURICH MONEY FUNDS PERFORMANCE SUMMARY, CONTINUED
ZURICH TAX-FREE MONEY FUND
YIELD COMPARISON
Zurich Tax-Free Money Fund is compared to its IBC Financial Data category -- The
Tax-Free Money Fund Average which consists of all non-institutional tax-free
money market funds tracked by IBC Financial Data. Returns are historical and do
not guarantee future results. Fund yields fluctuate. Income from Zurich Tax-Free
Money Fund may be subject to state and local taxes and the alternative minimum
tax.
7-day yield is the annualized net investment income per share for the period
shown. Gains or losses are not included.
PERFORMANCE GRAPHS
<TABLE>
<CAPTION>
FUND YIELD TAX-FREE MONEY MARKET FUNDS
---------- ---------------------------
<S> <C> <C>
8/3/98 3.42 3.11
3.26 2.83
3.29 2.97
3.28 2.95
3.29 2.96
3.18 2.77
3.23 2.91
3.51 3.21
3.67 3.36
3.46 3.14
3.25 2.93
3.22 2.91
3.05 2.82
3.09 2.82
2.93 2.71
2.99 2.81
3.05 2.89
2.96 2.82
2.66 2.53
2.89 2.71
3.07 2.89
3.27 3.10
3.47 3.31
2.80 2.67
2.76 2.59
1/25/99 2.72 2.53
</TABLE>
LIPPER RANKING
Lipper, Inc. rankings are based upon changes in net asset value with all
dividends reinvested for the periods indicated as of 1/31/99. Rankings are
historical and do not guarantee future performance. The Lipper category used for
comparison is the Lipper Tax-Exempt Money Market Fund category.
PERFORMANCE GRAPHS
10-YEAR PERFORMANCE
This chart shows the value of a hypothetical $10,000 investment in Zurich
Tax-Free Money Fund over the past 10 years, with all dividends reinvested. The
returns shown are historical and do not guarantee future performance.
PERFORMANCE GRAPHS
<TABLE>
<CAPTION>
10-YEAR PERFORMANCE
-------------------
<S> <C>
2/1/89 10000.00
10628.00
11238.00
11721.00
12043.00
12313.00
12660.00
13132.00
13568.00
14039.00
1/31/99 14497.00
</TABLE>
--
4
<PAGE> 7
variables affecting
performance
The investment manager invests in high-quality, short-term securities that are
consistent with each fund's specific objectives.
Our primary goal is to provide competitive yields while maintaining preservation
of principal and a high degree of liquidity. The specific securities portfolio
managers select have a major impact on reaching our goal. However, they must
continuously analyze other variables which affect share price stability and fund
performance. Traditionally, there are three important variables which are
factored into the decision-making process:
MONETARY POLICY
Monetary Policy is managed by the Federal Reserve Board (the "Fed") and has a
direct impact on short-term interest rates. If the Fed determines that inflation
is climbing, it will enact a policy to decrease or "tighten" the money supply.
With less money available, money lenders can command higher interest rates on
the money market securities they sell. On the other hand, if the Fed determines
the economy is heading toward a recession, it will increase or "ease" the money
supply. With more money for borrowers to access, the interest rates for money
market securities decline.
INTEREST RATES
Interest Rates will affect money fund yields because as investments mature, the
cash received will be reinvested at current money market rates which could be
either higher or lower. Reinvesting at higher interest rates generally means
higher yields for money funds and reinvesting at lower rates generally means
lower yields.
AVERAGE LENGTH OF MATURITY
Average Length of Maturity affects the timing of reinvesting cash from maturing
investments. If interest rates are expected to rise, decreasing the portfolio's
average length of maturity would enable the Fund to purchase higher-yielding
money market securities sooner. Conversely, if rates were expected to decrease,
the Fund would invest in money market securities with a longer length of
maturity in order to maintain higher yields longer.
(ALSO SEE "TERMS TO KNOW" SECTION)
--
5
<PAGE> 8
performance update
AN INTERVIEW WITH PORTFOLIO MANAGER FRANK RACHWALSKI
[RACHWALSKI PHOTO]
With three consecutive cuts in interest rates
during the last six months, the Federal Reserve
Board (the "Fed") had a big impact on money market
funds. Since yields will always move, with some
lag-time in the same direction as the Federal Funds
Rate, the six months covered in this report
(8/1/98 -- 1/31/99) proved to be challenging for
money market fund managers. Lead portfolio manager
Frank Rachwalski discusses market events and Zurich
Money Funds' performance during this time period.
---------------------------------------------------
FRANK RACHWALSKI IS A MANAGING DIRECTOR OF SCUDDER KEMPER INVESTMENTS, INC. AND
LEAD PORTFOLIO MANAGER OF ZURICH MONEY FUNDS. MR. RACHWALSKI HOLDS A B.B.A. AND
AN M.B.A. DEGREE FROM LOYOLA UNIVERSITY.
Q FRANK, PRIOR TO THE INTEREST RATE CUTS STARTING IN SEPTEMBER 1998, THE
FED HAD LEFT INTEREST RATES UNCHANGED FOR OVER A YEAR. WITH A STABLE
U.S. ECONOMY AND LOW EXPECTATION OF INFLATION, WHAT PROMPTED THE FED TO
CHANGE COURSE IN THEIR POLICY?
-------------------------------------------------------------------------
A Several factors entered into the decision. The economic problems in Asia
that surfaced toward the end of 1997 continued with political leadership
in these countries unable to correct the situation. In addition,
economic problems in Russia and Latin America appeared. Eventually, the
financial turmoil overseas started to take its toll on the U.S. economy with the
stock market plunge in late August as investors fled to safer investments. In
fact, with foreign and domestic investors pouring money into U.S. Treasury
securities, the 30-Year Treasury bond was trading below the Fed Funds Rate for
the first time since 1989. The Fed needed to take action at this point to both
- --------------------------------------------------------------------------------
The views expressed in this report reflect those of the portfolio manager only
through the end of the period of the report, as stated
on the cover. The manager's views are subject to change at any time, based on
market and other conditions.
- ---
6
<PAGE> 9
stabilize financial markets and provide some protection from slower economic
growth by lowering interest rates.
Q DID THIS MOVE WORK?
------------------------------------------------------------------------
A Yes, it did. You saw a quick recovery in the stock market and investor
concerns dissipated, which in turn brought the spread between long-term
rates for U.S. Treasuries and the Fed Funds Rate more in line.
Q HOW DID ALL THIS TURMOIL, INCLUDING THE THREE CONSECUTIVE CUTS IN
INTEREST RATES AFFECT THE ZURICH MONEY FUNDS?
------------------------------------------------------------------------
A Invariably, the rate cuts caught up with the Funds. There is no way
around it because money market funds invest in shorter maturities, so
when the rates on short-term securities drop, the Funds' yields will
follow.
Q WHAT WAS YOUR INVESTMENT STRATEGY FOR THE FUNDS DURING THIS TIME, AND
HOW DO YOU FEEL THEY PERFORMED GIVEN THIS MARKET CLIMATE?
-------------------------------------------------------------------------
A At the beginning of this period, we wanted to extend maturities because
we felt the Fed was going to lower interest rates, but with long-term
issues unattractively priced, there wasn't any reward in extending.
However, when rates started getting more in balance toward the end of the year,
we selectively looked to extend and when the market offered value for longer
maturities, we took advantage of the opportunity. In all, I feel the Funds
performed as they should in a period of volatility and lowered interest rates.
Continued
---
7
<PAGE> 10
Q WHAT DO YOU SEE HAPPENING IN THE MARKETPLACE DURING THE NEXT SIX MONTHS
AND WHAT IS YOUR STRATEGY FOR THE FUTURE?
------------------------------------------------------------------------
A We see continued moderate growth without any increases in inflation. An
extended period of Fed neutrality -- where they leave interest rates
alone -- is anticipated. Based on this prediction, we're going to keep
the maturities of our investments in the neutral range -- between 25-30 days.
Our main goal is to search for value to ensure the consistent performance we
feel we have always provided our shareholders.
- ---
8
<PAGE> 11
terms to know
7-DAY AVERAGE Every money market fund calculates its yield according
YIELD to a standardized method prescribed by the Securities
and Exchange Commission. Each day's yield is an average
taken over a 7-day period. This average helps to
minimize the effect of daily fluctuation in fund income,
and therefore yield.
MATURITY Maturity is the time remaining before an issuer is
scheduled to repay the principal amount on a debt
security. Money market instruments are debt securities.
FEDERAL FUNDS Commercial banks are required to keep these funds on
("FED FUNDS") deposit at the Federal Reserve Bank in their district.
In order to meet these reserve requirements,
occasionally commercial banks need to borrow funds.
These funds are borrowed from banks that have an excess
of the required amount on hand in what is called the
"Fed Funds Market". The interest rate on these loans is
called the "Fed Funds Rate" and is the key money market
rate which influences all other short-term rates.
U.S. TREASURIES These debt securities are issued by the U.S. Treasury
and include Treasury bills, Treasury bonds and Treasury
notes. They are considered to be the safest of all
securities. Their safety rests in the power of the U.S.
government to obtain tax revenues in order to repay its
obligations, and in its historical record of always
having done so.
--
9
<PAGE> 12
portfolio composition
<TABLE>
<CAPTION>
ZURICH MONEY MARKET FUND On 1/31/99*
<S> <C> <C> <C>
Commercial paper 74%
------------------------------------------------
Domestic CD's 13
------------------------------------------------
Repurchase agreements 6
ZURICH MONEY MARKET ------------------------------------------------
FUND PIE CHART Foreign CD's 5
------------------------------------------------
U.S. Government agency notes 2
------------------------------------------------
100%
WEIGHTED AVERAGE MATURITY+
Zurich Money Market Fund 29 days
------------------------------------------------
First Tier Money Fund Average 61 days
ZURICH GOVERNMENT MONEY FUND On 1/31/99*
Federal agencies 72%
------------------------------------------------
Repurchase agreements 28
ZURICH GOVERNMENT MONEY ------------------------------------------------
FUND PIE CHART 100%
WEIGHTED AVERAGE MATURITY+
Zurich Government Money Fund 41 days
------------------------------------------------
Government Money Fund Average 50 days
ZURICH TAX-FREE MONEY FUND On 1/31/99*
Variable rate demand notes 62%
------------------------------------------------
Tax-exempt commercial paper 35
------------------------------------------------
General market obligations 2
ZURICH TAX-FREE MONEY ------------------------------------------------
FUND PIE CHART Tender securities 1
------------------------------------------------
100%
WEIGHTED AVERAGE MATURITY+
Zurich Tax-Free Money Fund 19 days
------------------------------------------------
Tax-Free Money Fund Average 41 days
</TABLE>
* Portfolio composition and holdings are subject to change.
+ The Funds are compared to their respective IBC Financial Data category: The
First Tier Money Fund Average consists of all non-institutional taxable money
market funds investing in only first tier (highest rating) securities and
tracked by IBC Financial Data; Government Money Fund Average includes all
non-institutional government money market funds tracked by IBC Financial Data;
Tax-Free Money Fund Average consists of all non-institutional tax-free money
market funds tracked by IBC Financial Data.
Weighted average maturity for Zurich Money Market Fund and Zurich Government
Money Fund data is as of 1/26/99, Zurich Tax-Free Money Fund is as of 1/25/99.
--
10
<PAGE> 13
Zurich Money Market Fund
portfolio of investments
January 31, 1999 (unaudited)
(value in thousands)
<TABLE>
<CAPTION>
CORPORATE OBLIGATIONS
BANKING -- 8.7% RATE MATURITY VALUE
<S> <C> <C> <C> <C>
ABN-Amro North America
Finance, Inc. 4.92% 3/30/99 $ 24,808
--------------------------------------------------------------------------
Banque National de Paris 4.92% - 5.18% 3/25/99 - 3/31/99 49,684
--------------------------------------------------------------------------
Bayerische Hypothenken-Und
Vereinsbank A.G. 4.91% 4/6/99 49,569
--------------------------------------------------------------------------
Commonwealth Bank of
Australia 4.91% 4/7/99 24,781
--------------------------------------------------------------------------
Deutsche Bank Financial,
Inc. 4.88% 3/9/99 49,758
--------------------------------------------------------------------------
Merita N.A., Inc. 5.32% 2/10/99 49,934
--------------------------------------------------------------------------
Nordebanken N.A., Inc. 5.33% 2/17/99 49,883
--------------------------------------------------------------------------
Societe Generale 4.93% 4/6/99 49,567
--------------------------------------------------------------------------
UBS Finance, Inc. 4.86% 3/8/99 24,883
--------------------------------------------------------------------------
Wells Fargo & Co. 5.18% 3/12/99 49,723
------------------------------------------------------------------------------
422,590
<CAPTION>
BUSINESS LOANS -- 16.7%
<S> <C> <C> <C> <C>
Asset Portfolio Funding
Corp. 4.87% 3/18/99 49,697
--------------------------------------------------------------------------
Asset Securitization
Cooperative Corp. 4.88% - 5.43% 2/19/99 - 3/3/99 49,832
--------------------------------------------------------------------------
BP Capital, PLC 4.81% 2/1/99 25,000
--------------------------------------------------------------------------
Ciesco L.P. 5.34% 2/9/99 49,942
--------------------------------------------------------------------------
Corporate Asset Funding 5.43% 2/11/99 - 2/18/99 34,938
--------------------------------------------------------------------------
Enterprise Capital Funding
Corp. 4.91% 2/26/99 24,915
--------------------------------------------------------------------------
Fairway Finance Corp. 5.38% 2/25/99 39,859
--------------------------------------------------------------------------
Falcon Asset
Securitization Corp. 5.27% - 5.42% 2/4/99 - 2/8/99 49,963
--------------------------------------------------------------------------
International
Securitization Corp. 4.88% - 4.89% 3/15/99 - 3/25/99 39,753
--------------------------------------------------------------------------
Lexington Parker Capital
Co. 5.51% 2/18/99 49,872
--------------------------------------------------------------------------
Madison Funding Corp. 5.63% 2/10/99 24,965
--------------------------------------------------------------------------
</TABLE>
--
11
<PAGE> 14
ZURICH MONEY MARKET FUND PORTFOLIO OF INVESTMENTS, CONTINUED
(value in thousands)
<TABLE>
<CAPTION>
RATE MATURITY VALUE
<S> <C> <C> <C> <C>
Mont Blanc Capital Corp. 4.89% 3/22/99 $ 24,835
--------------------------------------------------------------------------
Monte Rosa Capital Corp. 4.88% - 4.89% 3/15/99 - 3/26/99 49,680
--------------------------------------------------------------------------
Old Line Funding Corp. 4.93% 2/24/99 49,843
--------------------------------------------------------------------------
Preferred Receivables
Funding Corp. 4.91% - 5.35% 2/9/99 - 3/1/99 44,921
--------------------------------------------------------------------------
Quincy Capital Corp. 5.47% 2/5/99 19,988
--------------------------------------------------------------------------
Receivables Capital Corp. 4.88% - 5.33% 2/1/99 - 3/19/99 54,845
--------------------------------------------------------------------------
Sheffield Receivables
Corp. 4.89% 4/12/99 24,765
--------------------------------------------------------------------------
Special Purpose Accounts
Receivables Cooperative 4.91% 3/24/99 49,655
--------------------------------------------------------------------------
Wood Street Funding Corp. 4.91% - 5.48% 2/12/99 - 3/16/99 49,813
------------------------------------------------------------------------------
807,081
CAPITAL AND EQUIPMENT
LENDING -- 9.2%
Ace Overseas Corp. 4.96% 4/8/99 - 4/14/99 49,530
--------------------------------------------------------------------------
(a)American Honda Finance
Corp. 4.92% - 5.01% 2/8/99 - 2/26/99 60,493
--------------------------------------------------------------------------
(a)Caterpillar Financial
Services Corp. 5.33% 2/16/99 25,000
--------------------------------------------------------------------------
Centric Capital Corp. 4.92% - 5.33% 2/2/99 - 3/29/99 59,844
--------------------------------------------------------------------------
Chrysler Financial Corp. 5.32% 2/23/99 49,840
--------------------------------------------------------------------------
(a)John Deere Capital
Corp. 5.19% - 5.25% 2/9/99 - 3/10/99 94,994
--------------------------------------------------------------------------
Moat Funding, LLC 4.95% - 5.27% 3/22/99 - 4/5/99 49,609
--------------------------------------------------------------------------
National Rural Utilities
CFC 5.12% 3/30/99 9,920
--------------------------------------------------------------------------
(a)Sigma Finance, Inc. 4.88% 2/1/99 45,000
------------------------------------------------------------------------------
444,230
<CAPTION>
CAPTIVE BUSINESS LENDING -- 4.7%
<S> <C> <C> <C> <C>
British Gas Capital, Inc. 5.25% 2/19/99 24,935
--------------------------------------------------------------------------
CSW Credit, Inc. 5.34% - 5.35% 2/11/99 - 2/16/99 49,908
--------------------------------------------------------------------------
</TABLE>
--
12
<PAGE> 15
<TABLE>
<CAPTION>
RATE MATURITY VALUE
<S> <C> <C> <C> <C>
California,
Oakland-Alameda County
Coliseum 4.90% 3/9/99 $ 25,000
--------------------------------------------------------------------------
(a)FINOVA Capital Corp. 5.29% 3/11/99 55,000
--------------------------------------------------------------------------
Petrobras International
Finance Co. 5.25% 2/16/99 19,957
--------------------------------------------------------------------------
(a)Prudential Funding
Corp. 4.83% 3/5/99 49,787
------------------------------------------------------------------------------
224,587
CONSUMER LENDING -- 7.6%
(a)Countrywide Home Loans 4.94% - 5.22% 2/26/99 - 4/27/99 55,000
--------------------------------------------------------------------------
(a)(b)GMAC Mortgage
Corporation
of Pennsylvania 5.22% 2/1/99 60,000
--------------------------------------------------------------------------
(a)Household Finance Corp. 4.94% 2/26/99 39,998
--------------------------------------------------------------------------
J.C. Penney Funding Corp. 4.96% 3/10/99 49,747
--------------------------------------------------------------------------
New Center Asset Trust 4.92% 3/11/99 49,742
--------------------------------------------------------------------------
Sears Roebuck Acceptance
Corp. 5.33% 2/12/99 49,920
--------------------------------------------------------------------------
Transamerica Finance Corp. 4.87% 3/10/99 24,876
(a)5.22% 4/22/99 40,000
------------------------------------------------------------------------------
369,283
<CAPTION>
CONSUMER PRODUCTS AND SERVICES -- 1.0%
<S> <C> <C> <C> <C>
Coca-Cola Enterprises,
Inc. 4.89% - 5.30% 2/2/99 - 3/30/99 49,804
------------------------------------------------------------------------------
<CAPTION>
DIVERSIFIED FINANCE -- 15.5%
<S> <C> <C> <C> <C>
Alpine Securitization
Corp. 4.92% 2/16/99 49,898
--------------------------------------------------------------------------
Amsterdam Funding Corp. 4.93% 3/4/99 - 4/14/99 49,651
--------------------------------------------------------------------------
Associates Corp. of
North America 4.88% 3/4/99 49,791
--------------------------------------------------------------------------
Barton Capital Corp. 4.86% - 5.46% 2/24/99 - 3/9/99 59,762
--------------------------------------------------------------------------
(a)CIT Group Holdings,
Inc. 4.84% - 5.04% 2/1/99 - 4/14/99 54,976
--------------------------------------------------------------------------
</TABLE>
--
13
<PAGE> 16
ZURICH MONEY MARKET FUND PORTFOLIO OF INVESTMENTS, CONTINUED
(value in thousands)
<TABLE>
<CAPTION>
RATE MATURITY VALUE
<S> <C> <C> <C> <C>
CXC, Inc. 4.88% - 5.38% 2/19/99 -3/23/99 $ 49,766
--------------------------------------------------------------------------
Clipper Receivables Corp. 5.37% 2/5/99 49,971
--------------------------------------------------------------------------
Eureka Securitization,
Inc. 4.88% 3/23/99 24,832
--------------------------------------------------------------------------
Export Development Corp. 4.80% 2/4/99 24,990
--------------------------------------------------------------------------
(a)General Electric
Capital Corp. 5.19% 3/9/99 25,000
--------------------------------------------------------------------------
Heller Financial, Inc. 5.50% - 5.58% 2/26/99 - 3/17/99 49,740
--------------------------------------------------------------------------
Norwest Financial Corp. 5.33% 3/1/99 49,796
--------------------------------------------------------------------------
Paccar Financial Corp. 5.14% 3/25/99 24,817
--------------------------------------------------------------------------
Thunder Bay Funding, Inc. 4.88% 4/1/99 24,802
--------------------------------------------------------------------------
Twin Towers, Inc. 4.94% - 5.37% 2/22/99 - 3/10/99 39,828
--------------------------------------------------------------------------
Variable Funding Capital
Corp. 4.87% 3/19/99 24,845
--------------------------------------------------------------------------
Windmill Funding Corp. 4.88% - 4.91% 3/11/99 - 4/1/99 74,521
--------------------------------------------------------------------------
Xerox Credit Corp. 4.82% 2/1/99 25,000
------------------------------------------------------------------------------
751,986
FINANCIAL SERVICES -- 5.7%
(a)Bear Stearns Cos., Inc. 4.93% - 5.69% 2/8/99 - 2/18/99 53,000
--------------------------------------------------------------------------
(a)CS First Boston, Inc. 4.86% 2/1/99 54,997
--------------------------------------------------------------------------
(a)Goldman Sachs Group,
L.P. 5.05% 2/8/99 50,000
--------------------------------------------------------------------------
(a)Lehman Brothers
Holdings, Inc. 5.01% 2/22/99 58,000
--------------------------------------------------------------------------
(a)Merrill Lynch & Co.,
Inc. 4.94% 2/22/99 35,000
--------------------------------------------------------------------------
Salomon Smith Barney
Holdings, Inc. 5.37% 2/17/99 24,941
------------------------------------------------------------------------------
275,938
<CAPTION>
HEALTH CARE -- .4%
<S> <C> <C> <C> <C>
Baxter International, Inc. 4.87% 2/3/99 19,995
------------------------------------------------------------------------------
</TABLE>
--
14
<PAGE> 17
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MANUFACTURING/
INDUSTRIAL -- .8% RATE MATURITY VALUE
Monsanto Co. 5.19% 2/1/99 $ 15,000
--------------------------------------------------------------------------
(a)Xerox Capital Europe,
PLC 5.14% 2/22/99 24,995
------------------------------------------------------------------------------
39,995
UTILITIES -- 4.0%
Ameritech Corp. 4.82% 2/3/99 24,993
--------------------------------------------------------------------------
California
Oakland-Alameda County
Coliseum 5.40% 2/3/99 25,000
Pollution Control
Financing Auth. 4.90% 4/9/99 25,000
--------------------------------------------------------------------------
Frontier Corp. 4.96% 4/5/99 24,786
--------------------------------------------------------------------------
GTE Corp. 5.40% 2/11/99 24,963
--------------------------------------------------------------------------
New Hampshire, Industrial
Development Authority 5.38% 2/12/99 25,000
--------------------------------------------------------------------------
Texas, Brazos River
Authority 5.20% - 5.30% 2/26/99 - 3/12/99 45,000
------------------------------------------------------------------------------
194,742
------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS -- 74.3%
(AVERAGE MATURITY: 32 DAYS) 3,600,231
BANK OBLIGATIONS
CERTIFICATES OF DEPOSIT --
U.S. BANKS -- 13.0%
(a)Amex Centurian Bank 4.94% - 4.95% 2/16/99 - 2/18/99 30,000
--------------------------------------------------------------------------
(a)Bankers Trust Co. 4.83% - 4.86% 2/1/99 49,994
--------------------------------------------------------------------------
(a)FCC National Bank 4.80% 2/1/99 54,987
--------------------------------------------------------------------------
(a)First National Bank of
Boston 4.89% - 5.06% 2/1/99 - 4/7/99 55,000
--------------------------------------------------------------------------
</TABLE>
--
15
<PAGE> 18
ZURICH MONEY MARKET FUND PORTFOLIO OF INVESTMENTS, CONTINUED
(value in thousands)
<TABLE>
<CAPTION>
RATE MATURITY VALUE
<S> <C> <C> <C> <C>
(a)First Union National
Bank 5.42% 2/16/99 $ 50,000
--------------------------------------------------------------------------
Fleet National Bank, N.A. 4.92% 4/15/99 50,000
--------------------------------------------------------------------------
(a)J.P. Morgan & Co., Inc. 4.94% 2/8/99 54,986
--------------------------------------------------------------------------
(a)Key Bank, N.A. 4.89% 2/26/99 54,982
--------------------------------------------------------------------------
MBNA America Bank, N.A. 5.25% 3/26/99 50,000
--------------------------------------------------------------------------
(a)Nationsbank, N.A. 4.83% - 5.04% 2/1/99 - 4/1/99 39,991
--------------------------------------------------------------------------
(a)Northern Trust Corp. 4.93% 2/8/99 54,980
--------------------------------------------------------------------------
(a)PNC Bank, N.A. 5.13% 2/3/99 15,000
--------------------------------------------------------------------------
(a)U.S. Bank, N. A. 4.93% 2/17/99 49,991
--------------------------------------------------------------------------
(a)Wachovia Bank, N.A. 4.84% 2/19/99 19,999
------------------------------------------------------------------------------
629,910
CERTIFICATES OF DEPOSIT --
FOREIGN BANKS -- 5.1%
Bank of Nova Scotia 5.31% 2/3/99 50,000
--------------------------------------------------------------------------
Canadian Imperial Bank of
Commerce 5.15% 3/25/99 59,980
--------------------------------------------------------------------------
(a)National Bank of Canada 5.00% 2/5/99 15,000
--------------------------------------------------------------------------
(a)Royal Bank of Canada 4.80% 2/1/99 19,994
--------------------------------------------------------------------------
(a)Svenska Handelsbanken 5.34% 2/18/99 34,997
--------------------------------------------------------------------------
Toronto-Dominion Bank (a)4.88% 2/16/99 14,994
5.13% 3/8/99 50,000
------------------------------------------------------------------------------
244,965
------------------------------------------------------------------------------
TOTAL BANK OBLIGATIONS -- 18.1%
(AVERAGE MATURITY: 28 DAYS) 874,875
</TABLE>
--
16
<PAGE> 19
<TABLE>
<CAPTION>
CERTIFICATES OF DEPOSIT --
FOREIGN BANKS -- 5.1%
<S> <C> <C> <C> <C>
(c) REPURCHASE
AGREEMENTS RATE MATURITY VALUE
(DATED 1/99, COLLATERALIZED BY FEDERAL HOME LOAN MORTGAGE
CORPORATION, FEDERAL NATIONAL MORTGAGE ASSOCIATION AND
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION SECURITIES)
CS First Boston, Inc.
(held at The Chase
Manhattan Bank) 4.80% 3/2/99 - 3/5/99 $ 125,000
------------------------------------------------------------------------------
Salomon Brothers, Inc.
(held at The Bank of New
York) 4.80% 3/2/99 - 3/17/99 175,000
------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS -- 6.2%
(AVERAGE MATURITY: 38 DAYS) 300,000
U.S. GOVERNMENT AGENCY NOTES
(a)Federal National
Mortgage Association 4.44% 2/2/99 54,933
--------------------------------------------------------------------------
(a)Student Loan Marketing
Association 4.61% 2/2/99 19,951
------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY NOTES -- 1.5%
(AVERAGE MATURITY: 4 DAYS) 74,884
------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.1%
(AVERAGE MATURITY: 31 DAYS) 4,849,990
------------------------------------------------------------------------------
LIABILITIES, LESS OTHER ASSETS -- (.1)% (5,959)
------------------------------------------------------------------------------
NET ASSETS -- 100% $4,844,031
</TABLE>
SEE ACCOMPANYING NOTES TO PORTFOLIOS OF INVESTMENTS.
--
17
<PAGE> 20
Zurich Government Money Fund
portfolio of investments
January 31, 1999 (unaudited)
(value in thousands)
<TABLE>
<CAPTION>
SHORT-TERM NOTES RATE MATURITY VALUE
<S> <C> <C> <C> <C>
(ISSUED OR GUARANTEED BY U.S. GOVERNMENT AGENCIES OR
INSTRUMENTALITIES)
(a)Agency for
International Development
Government of Israel 4.94%, 7/1/99 $ 1,791
------------------------------------------------------------------------
(a)Export-Import Bank of
the United States
Cathay Pacific Airway,
Ltd. 5.18% 4/15/99 1,193
KA Leasing, Ltd. 5.19% 2/15/99 6,912
Kuwait Investment
Authority 5.03% 2/15/99 7,613
------------------------------------------------------------------------
(a)Federal Home Loan Bank 5.03% 10/29/99 15,000
------------------------------------------------------------------------
Federal Home Loan Mortgage
Corp. 5.00% - 5.15% 2/5/99 - 3/29/99 149,051
------------------------------------------------------------------------
Federal National Mortgage
Association (a)4.44% - 5.06% 2/2/99 - 3/6/99 57,941
4.82% - 5.14% 2/16/99 - 3/25/99 135,378
------------------------------------------------------------------------
(a)Overseas Private
Investment Corp.
International Paper Co. 4.91% 4/15/99 3,600
Omolon 4.81% 2/2/99 18,501
------------------------------------------------------------------------
(a)Student Loan Marketing
Association 4.66% 2/2/99 115,779
------------------------------------------------------------------------
TOTAL SHORT-TERM NOTES -- 72.3%
(AVERAGE MATURITY: 29 DAYS) 512,759
</TABLE>
--
18
<PAGE> 21
<TABLE>
<CAPTION>
(c) REPURCHASE AGREEMENTS RATE MATURITY VALUE
<S> <C> <C> <C> <C>
DATED 1/99, COLLATERALIZED BY FEDERAL HOME LOAN MORTGAGE
CORPORATION, FEDERAL NATIONAL MORTGAGE ASSOCIATION AND
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION SECURITIES)
Bear Stearns Cos., Inc.
(held at The Bank of New
York) 4.85% - 5.18% 2/10/99 - 4/7/99 $103,000
------------------------------------------------------------------------
Chase Securities, Inc.
(held at The Chase
Manhattan Bank) 4.85% - 4.86% 2/17/99 - 3/2/99 22,000
------------------------------------------------------------------------
Goldman, Sachs Group, L.P.
(held at The Bank of New
York) 4.80% 2/24/99 35,000
------------------------------------------------------------------------
Morgan Stanley, Dean
Witter & Co.
(held at The Bank of New
York) 4.90% 2/2/99 5,000
------------------------------------------------------------------------
Salomon Smith Barney
Holdings, Inc.
(held at The Bank of New
York) 4.80% - 4.92% 2/3/99 - 3/8/99 29,000
------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS -- 27.4%
(AVERAGE MATURITY: 35 DAYS) 194,000
------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.7%
(AVERAGE MATURITY: 31 DAYS)
706,759
------------------------------------------------------------------------
CASH AND OTHER ASSETS, LESS LIABILITIES -- .3% 1,850
------------------------------------------------------------------------
NET ASSETS -- 100% $708,609
</TABLE>
SEE ACCOMPANYING NOTES TO PORTFOLIOS OF INVESTMENTS.
--
19
<PAGE> 22
Zurich Tax-Free Money Fund
portfolio of investments
January 31, 1999 (unaudited)
(value in thousands)
<TABLE>
<CAPTION>
(A) VARIABLE RATE DEMAND SECURITIES
ARIZONA RATE VALUE
<S> <C> <C> <C>
Apache County,
Industrial Development Authority 2.75%
$10,000
--------------------------------------------------------------------------
Maricopa County,
Pollution Control Revenue 2.75%
9,000
CALIFORNIA
Statewide Communities
Development Authority,
Multi-Family Revenue 3.90%
5,000
--------------------------------------------------------------------------
Los Angeles
Harbor Improvement Corp. 3.10%
11,200
Regional Airports Improvement
Corp. 3.25%
4,000
DISTRICT OF COLUMBIA
American Public Health Association 2.75%
6,000
--------------------------------------------------------------------------
General Obligation 3.30% - 3.40%
26,800
FLORIDA
Broward County,
Industrial Development Revenue 3.00%
5,900
--------------------------------------------------------------------------
Dade County,
Water and Sewer Systems Revenue 2.65%
9,500
--------------------------------------------------------------------------
Orange County,
Health Facilities Authority 2.75%
7,700
--------------------------------------------------------------------------
Sarasota County,
Health Facilities Authority 2.75%
4,500
GEORGIA
Cartersville,
Industrial Development Revenue 3.20%
3,600
--------------------------------------------------------------------------
De Kalb County,
Development Authority Pollution
Control Revenue 2.80%
5,000
--------------------------------------------------------------------------
Fulton County
Development Authority 2.75%
7,145
Morehouse College 2.75%
6,420
--------------------------------------------------------------------------
</TABLE>
--
20
<PAGE> 23
<TABLE>
<CAPTION>
RATE VALUE
<S> <C> <C> <C>
Gainesville-Riverside,
Redevelopment Authority Revenue 2.75%
$ 8,000
ILLINOIS
Development Finance Authority 2.91%
40,470
--------------------------------------------------------------------------
Health Facilities Authority 2.90%
8,285
--------------------------------------------------------------------------
Student Assistance Commission 2.80%
6,500
--------------------------------------------------------------------------
Chicago
Industrial Development Revenue 2.90%
3,700
O'Hare International Airport
Revenue 3.20%
5,600
--------------------------------------------------------------------------
Cicero,
Industrial Development Revenue 2.90%
3,130
--------------------------------------------------------------------------
Hillside,
Economic Development Authority 2.90%
6,000
--------------------------------------------------------------------------
McHenry,
Industrial Project Revenue 2.90%
5,500
--------------------------------------------------------------------------
Mundelein,
Industrial Development Revenue 2.90%
6,500
--------------------------------------------------------------------------
Springfield,
Industrial Development Revenue 2.90%
6,500
--------------------------------------------------------------------------
Woodridge,
Industrial Development Revenue 2.90%
5,100
--------------------------------------------------------------------------
Woodstock,
Industrial Development Revenue 2.90%
5,500
<CAPTION>
INDIANA
<S> <C> <C> <C>
Health Facility Financing Authority 2.70%
12,150
--------------------------------------------------------------------------
Ossian,
Economic Development Revenue 2.80%
4,700
--------------------------------------------------------------------------
Rockport,
Pollution Control Revenue 2.80%
10,000
</TABLE>
--
21
<PAGE> 24
ZURICH TAX-FREE MONEY FUND PORTFOLIO OF INVESTMENTS, CONTINUED
(value in thousands)
<TABLE>
<CAPTION>
KANSAS RATE VALUE
<S> <C> <C> <C>
Kansas City,
Pollution Control Revenue 2.80%
$ 4,350
KENTUCKY
Lexington-Fayette
Urban County Government Industrial
Building Revenue 3.40%
4,200
--------------------------------------------------------------------------
Mason County,
Pollution Control Revenue 2.80%
14,000
--------------------------------------------------------------------------
Mayfield,
Multi-City Lease Revenue 2.85%
11,200
LOUISIANA
Caddo Parish,
Industrial Development Board 2.85%
8,500
NEVADA
Department of Commerce 3.15%
4,650
NEW MEXICO
Belen,
Industrial Development Revenue 2.90%
4,765
--------------------------------------------------------------------------
Farmington,
Pollution Control Revenue 2.75%
6,300
NORTH CAROLINA
Medical Care Commission,
Retirement Community Revenue 2.75%
5,000
--------------------------------------------------------------------------
Wake County,
Pollution Control Financing
Authority Revenue 2.70%
10,500
</TABLE>
--
22
<PAGE> 25
<TABLE>
<CAPTION>
OHIO RATE VALUE
<S> <C> <C> <C>
Portage County,
Industrial Development Revenue 2.90%
$ 4,900
PENNSYLVANIA
Higher Education Facilities
Authority 2.80%
19,000
--------------------------------------------------------------------------
Allentown,
Area Hospital Authority 2.85%
7,100
--------------------------------------------------------------------------
Philadelphia
Authority for Industrial
Development 2.98%
12,170
Industrial Development Authority 3.25%
6,600
--------------------------------------------------------------------------
Schuylkill County,
Industrial Development Authority 2.70%
11,600
TENNESSEE
Clarksville,
Public Building Authority 2.70%
8,760
--------------------------------------------------------------------------
Maury County,
Industrial Development Board 2.75%
2,500
TEXAS
Brazos River Authority 3.30%
11,600
--------------------------------------------------------------------------
Harris County,
Health Facilities Development Corp. 3.05%
18,400
--------------------------------------------------------------------------
North Central,
Health Facility Development Corp. 3.25%
8,000
--------------------------------------------------------------------------
Trinity River Authority 2.80%
9,200
VIRGINIA
Loudoun County,
Industrial Development Authority 2.90%
6,170
WASHINGTON
Port of Vancouver 2.80%
8,850
</TABLE>
--
23
<PAGE> 26
ZURICH TAX-FREE MONEY FUND PORTFOLIO OF INVESTMENTS, CONTINUED
(value in thousands)
<TABLE>
<CAPTION>
WISCONSIN RATE VALUE
<S> <C> <C> <C>
Health and Education,
Facilities Authority Revenue 2.72%
$22,480
---------------------------------------------------------------------------
Eau Claire,
Solid Waste Disposal Revenue 2.95%
10,000
---------------------------------------------------------------------------
Manitowoc,
Industrial Development Revenue 2.90%
4,270
---------------------------------------------------------------------------
TOTAL VARIABLE RATE DEMAND SECURITIES -- 62.4%
(AVERAGE MATURITY: 6 DAYS)
504,465
</TABLE>
<TABLE>
<CAPTION>
OTHER SECURITIES
ALASKA RATE MATURITY VALUE
<S> <C> <C> <C> <C>
Valdez,
Marine Terminal Revenue 3.10% 2/17/99 - 3/11/99 12,100
<CAPTION>
ARIZONA
<S> <C> <C> <C> <C>
Salt River Project,
Agricultural Improvement and
Power District 3.07% - 3.10% 2/17/99 - 2/18/99 5,615
COLORADO
Platte River
Power Authority 3.05% 3/10/99 6,000
FLORIDA
Jacksonville,
Electric Authority 3.10% 2/22/99 - 3/11/99 14,050
--------------------------------------------------------------------------
Orlando,
Capital Improvement Revenue 3.10% 2/22/99 6,500
--------------------------------------------------------------------------
Sunshine State,
Governmental Financing
Commission 3.10% - 3.15% 2/16/99 - 3/9/99 14,600
GEORGIA
Municipal Electric Authority 3.10% 2/12/99 - 3/8/99 13,650
</TABLE>
--
24
<PAGE> 27
<TABLE>
<CAPTION>
ILLINOIS RATE MATURITY VALUE
<S> <C> <C> <C> <C>
Educational Facilities
Authority 3.10% 2/9/99 - 3/11/99 $ 17,660
---------------------------------------------------------------------------
Health Facilities Authority 3.05% 5/13/99 7,300
INDIANA
Jasper County,
Pollution Control Revenue 3.10% 2/16/99 - 3/11/99 31,450
---------------------------------------------------------------------------
Sullivan,
Pollution Control Revenue 3.10% 2/19/99 - 3/5/99 13,165
KANSAS
Burlington,
Pollution Control Revenue 3.05% 2/15/99 5,965
KENTUCKY
Danville,
Multi-City Lease Revenue 3.05% 2/1/99 10,000
---------------------------------------------------------------------------
Pendleton County,
Multi-County Lease Revenue 2.95% - 3.10% 2/19/99 - 3/9/99 20,555
LOUISIANA
Industrial District of
West Baton Rouge,
Pollution Control Revenue 3.15% 3/9/99 3,500
MARYLAND
Anne Arundel County,
Port Facilities Revenue 3.00% - 3.10% 2/10/99 - 3/18/99 23,120
</TABLE>
--
25
<PAGE> 28
ZURICH TAX-FREE MONEY FUND PORTFOLIO OF INVESTMENTS, CONTINUED
<TABLE>
<CAPTION>
<S> <C> <C> <C>
(value in thousands)
MISSISSIPPI RATE MATURITY VALUE
Claiborne County,
Pollution Control Revenue 3.00% 3/18/99 $ 2,000
NEW YORK
Nassau County,
General Obligation 3.05% - 3.10% 3/30/99 - 12/22/99 18,536
---------------------------------------------------------------------------
New York City,
Municipal Water Finance
Authority 2.90% 2/16/99 6,000
SOUTH CAROLINA
Public Service Authority 3.05% - 3.15% 2/16/99 - 3/10/99 12,000
TEXAS
Municipal Power Agency 3.05% - 3.10% 2/11/99 - 3/11/99 24,500
---------------------------------------------------------------------------
Water Systems Notes 3.10% 2/17/99 7,100
---------------------------------------------------------------------------
Texas A&M University 3.00% 3/8/99 4,800
---------------------------------------------------------------------------
Houston,
Water and Sewer System 3.15% 3/11/99 6,000
VIRGINIA
Chesterfield County,
Industrial Development
Authority 3.05% - 3.10% 2/10/99 - 2/11/99 13,350
---------------------------------------------------------------------------
TOTAL OTHER SECURITIES -- 37.0%
(AVERAGE MATURITY: 36 DAYS) 299,516
---------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.4%
(AVERAGE MATURITY: 18 DAYS) 803,981
---------------------------------------------------------------------------
CASH AND OTHER ASSETS, LESS LIABILITIES -- .6% 5,161
---------------------------------------------------------------------------
NET ASSETS -- 100% $ 809,142
</TABLE>
SEE ACCOMPANYING NOTES TO PORTFOLIOS OF INVESTMENTS.
--
26
<PAGE> 29
notes to
portfolios of investments
Interest rates represent annualized yield to date of maturity, except for
variable rate securities described in Note (a). For each security, cost (for
financial reporting and federal income tax purposes) and carrying value are the
same. Likewise, carrying value approximates principal amount.
(a) Variable rate securities. The rates shown are the current rates at January
31, 1999. The dates shown represent the demand date or the next interest
rate change date. Securities in the Zurich Tax-Free Money Fund shown without
a date are payable within five business days and are backed by credit
support agreements from banks or insurance institutions.
(b) Illiquid securities. At January 31, 1999, the value of illiquid securities
was $60,000,000 in the Zurich Money Market Fund, which represented 1.2% of
net assets.
(c) Repurchase agreements are fully collateralized by U.S. Government securities
or U.S. Government Agency securities. All collateral is held at the Funds'
custodian bank, Investors Fiduciary Trust Company, or at subcustodian banks,
as indicated. The collateral is monitored daily by the Funds so that its
market value exceeds the carrying value of the repurchase agreement.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
--
27
<PAGE> 30
financial statements
STATEMENT OF ASSETS AND LIABILITIES
January 31, 1999 (unaudited)
(in thousands)
<TABLE>
<CAPTION>
ASSETS MONEY MARKET GOVERNMENT TAX-FREE
<S> <C> <C> <C> <C>
Investments, at amortized
cost:
Short-term securities $4,549,990 512,759 803,981
--------------------------------------------------------------------
Repurchase agreements 300,000 194,000 --
--------------------------------------------------------------------
Cash -- 506 2,913
--------------------------------------------------------------------
Interest receivable 11,300 2,503 3,196
------------------------------------------------------------------------
TOTAL ASSETS 4,861,290 709,768 810,090
LIABILITIES AND NET ASSETS
Cash overdraft 8,693 -- --
--------------------------------------------------------------------
Payable for:
Dividends 4,464 707 464
--------------------------------------------------------------------
Management fee 1,239 258 230
--------------------------------------------------------------------
Custodian and transfer agent
fees and related expenses 1,680 121 172
--------------------------------------------------------------------
Trustees' fees and other 1,183 73 82
------------------------------------------------------------------------
TOTAL LIABILITIES 17,259 1,159 948
------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
SHARES OUTSTANDING $4,844,031 708,609 809,142
THE PRICING OF SHARES
Shares outstanding 4,844,031 708,609 809,142
--------------------------------------------------------------------
Net asset value and redemption
price per share $1.00 1.00 1.00
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
--
28
<PAGE> 31
STATEMENT OF OPERATIONS
Six months ended January 31, 1999 (unaudited)
(in thousands)
<TABLE>
<CAPTION>
NET INVESTMENT INCOME MONEY MARKET GOVERNMENT TAX-FREE
<S> <C> <C> <C> <C>
Interest income $132,039 18,627 14,053
--------------------------------------------------------------------
Expenses:
Management fee 6,458 972 1,097
--------------------------------------------------------------------
Custodian and transfer agent
fees and related expenses 4,148 451 287
--------------------------------------------------------------------
Reports to shareholders 294 45 9
--------------------------------------------------------------------
Registration costs 20 9 9
--------------------------------------------------------------------
Professional fees 62 2 12
--------------------------------------------------------------------
Trustees' fees and other 605 14 24
--------------------------------------------------------------------
Total expenses 11,587 1,493 1,438
--------------------------------------------------------------------
Net investment income $120,452 17,134 12,615
</TABLE>
--
29
<PAGE> 32
ZURICH MONEY FUNDS FINANCIAL STATEMENTS, CONTINUED
Six months ended January 31, 1999 (unaudited) and year ended July 31, 1998
(in thousands)
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
OPERATIONS, DIVIDENDS AND CAPITAL SHARE ACTIVITY
<S> <C>
Net investment income
----------------------------------------------------------------
Dividends to shareholders from net investment income
----------------------------------------------------------------
Capital share transactions
(dollar amounts and number of shares are the same):
Shares sold
----------------------------------------------------------------
Shares issued in reinvestment of dividends
----------------------------------------------------------------
----------------------------------------------------------------
Shares redeemed
----------------------------------------------------------------
NET INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS AND
TOTAL INCREASE (DECREASE) IN NET ASSETS
NET ASSETS
Beginning of period
----------------------------------------------------------------
END OF PERIOD
</TABLE>
--
30
<PAGE> 33
<TABLE>
<CAPTION>
MONEY MARKET GOVERNMENT TAX-FREE
1999 1998 1999 1998 1999 1998
<S> <C> <C> <C> <C> <C> <C> <C>
$ 120,452 235,535 17,134 35,113 12,615 27,214
- ----------------------------------------------------------------------------
(120,452) (235,535) (17,134) (35,113) (12,615) (27,214)
- ----------------------------------------------------------------------------
4,359,644 7,670,002 341,389 646,450 447,298 851,664
- ----------------------------------------------------------------------------
116,250 227,005 16,574 33,991 12,321 26,435
- ----------------------------------------------------------------------------
4,475,894 7,897,007 357,963 680,441 459,619 878,099
- ----------------------------------------------------------------------------
(4,170,490) (7,720,315) (336,225) (664,709) (466,371) (833,520)
- --------------------------------------------------------------------------------
305,404 176,692 21,738 15,732 (6,752) 44,579
4,538,627 4,361,935 686,871 671,139 815,894 771,315
- -----------------------------------------------------------------
$ 4,844,031 4,538,627 708,609 686,871 809,142 815,894
</TABLE>
--
31
<PAGE> 34
notes to
financial statements
1. DESCRIPTION OF THE FUNDS
Zurich Money Funds (the "Trust") is an open-end management investment company
organized as a business trust under the laws of Massachusetts currently offering
three investment funds ("Funds"). Zurich Money Market Fund invests primarily in
short-term high quality obligations of major banks and corporations. Zurich
Government Money Fund invests exclusively in obligations issued or guaranteed by
the U.S. Government, its agencies or instrumentalities and repurchase agreements
thereon. Zurich Tax-Free Money Fund invests in short-term high quality municipal
securities.
2. SIGNIFICANT ACCOUNTING POLICIES
INVESTMENT VALUATION. Investments are stated at amortized cost, which
approximates market value. In the event that a deviation of 1/2 of 1% or more
exists between a fund's $1.00 per share net asset value, calculated at amortized
cost, and the net asset value calculated by reference to market-based values, or
if there is any other deviation that the Board of Trustees believes would result
in a material dilution to shareholders or purchasers, the Board of Trustees will
promptly consider what action should be initiated.
INVESTMENT TRANSACTIONS AND INTEREST INCOME. Investment transactions are
accounted for on the trade date. Interest income is recorded on the accrual
basis and includes amortization of premium and discount on investments.
EXPENSES. Expenses arising in connection with a fund are allocated to that fund.
Other trust expenses are allocated among the Funds in proportion to their
relative net assets.
FUND SHARE VALUATION AND DIVIDENDS TO SHAREHOLDERS. Fund shares are sold and
redeemed on a continuous basis at net asset value. On each day that the New York
Stock Exchange is open for trading, each fund determines its net asset value per
share (NAV) by dividing the total value of the Fund's investments and other
assets, less liabilities, by the number of fund shares outstanding. The NAV is
determined at 11:00 a.m., 1:00 p.m. and 3:00 p.m. Central time for Zurich Money
Market Fund and Zurich Government Money Fund and at 11:00 a.m. and 3:00 p.m.
Central time for Zurich Tax-Free Money Fund. Each fund declares a daily
dividend, equal to its net investment income for that day, payable monthly. Net
investment income consists of all interest income plus (minus) all realized
gains (losses) on portfolio securities, minus all expenses of the Fund.
--
32
<PAGE> 35
FEDERAL INCOME TAXES. Each fund's policy is to comply with the requirements of
the Internal Revenue Code, as amended, which are applicable to regulated
investment companies, and to distribute all of its taxable income to its
shareholders. Accordingly, each fund paid no federal income taxes and no federal
income tax provision was required.
3. TRANSACTIONS WITH AFFILIATES
MANAGEMENT AGREEMENT. The Funds have a management agreement with Scudder Kemper
Investments, Inc. (Scudder Kemper) and pay a monthly investment management fee
of 1/12 of the annual rate of .50% of the first $215 million of combined average
daily net assets declining to .25% of combined average daily net assets in
excess of $800 million. During the six months ended January 31, 1999, the Funds
incurred management fees of $8,527,000.
ZURICH/B.A.T MERGER. On September 7, 1998, Zurich Insurance Company (Zurich),
majority owner of Scudder Kemper, entered into an agreement with B.A.T
Industries p.l.c. (B.A.T) pursuant to which the financial services businesses of
B.A.T were combined with Zurich's businesses to form a new global insurance and
financial services company known as Zurich Financial Services. Upon consummation
of the transaction, the Trust's agreement with Scudder Kemper was deemed to have
been assigned and, therefore, terminated. The Board of Trustees of the Trust has
approved a new investment management agreement with Scudder Kemper, which is
substantially identical to the former investment management agreement, except
for the dates of execution and termination. Shareholders approved the new
investment management agreement through a proxy solicitation that concluded in
mid-December.
SHAREHOLDER SERVICES AGREEMENT. Pursuant to a services agreement with the Funds'
transfer agent, Kemper Service Company (KSvC) is the shareholder service agent
of the Trust. Under the agreement, KSvC received shareholder services fees of
$3,183,000 for the six months ended January 31, 1999.
OFFICERS AND TRUSTEES. Certain officers or trustees of the Trust are also
officers or directors of Scudder Kemper. During the six months ended January 31,
1999, the Trust made no payments to its officers and incurred trustees' fees of
$49,000 to independent trustees.
--
33
<PAGE> 36
financial highlights
ZURICH MONEY MARKET FUND
<TABLE>
<CAPTION>
PER SHARE OPERATING PERFORMANCE
<S> <C> <C> <C> <C> <C> <C>
SIX
MONTHS
ENDED
JANUARY
31, YEAR ENDED JULY 31,
1999 -------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $1.00 1.00 1.00 1.00 1.00
-----------------------------------------------------------------------------------
Net investment income .03 .05 .05 .05 .05
-----------------------------------------------------------------------------------
Less dividends
declared .03 .05 .05 .05 .05
-----------------------------------------------------------------------------------
Net asset value, end
of period $1.00 1.00 1.00 1.00 1.00
----------------------------------------------------------------------
TOTAL RETURN
(NOT ANNUALIZED) 2.58% 5.38 5.27 5.34 5.34
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED)
Expenses .48% .48 .45 .50 .52
-----------------------------------------------------------------------------------
Net investment income 4.98% 5.24 5.14 5.20 5.19
SUPPLEMENTAL DATA
Net assets at end of
period (in thousands) $4,844,031 4,538,627 4,361,935 4,225,775 4,025,098
</TABLE>
Note: Zurich Money Market Fund's total return for the year ended July 31, 1995
includes the effect of a capital contribution from the investment manager.
Without the capital contribution, the total return would have been 4.62%.
--
34
<PAGE> 37
ZURICH GOVERNMENT MONEY FUND
<TABLE>
<CAPTION>
PER SHARE OPERATING PERFORMANCE
SIX
MONTHS
ENDED
JANUARY
31, YEAR ENDED JULY 31,
1999 -----------------------------------------
(UNAUDITED) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $1.00 1.00 1.00 1.00 1.00
---------------------------------------------------------------------------
Net investment income .02 .05 .05 .05 .05
---------------------------------------------------------------------------
Less dividends
declared .02 .05 .05 .05 .05
---------------------------------------------------------------------------
Net asset value, end
of period $1.00 1.00 1.00 1.00 1.00
----------------------------------------------------------------
TOTAL RETURN
(NOT ANNUALIZED) 2.46% 5.33 5.26 5.34 5.36
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED)
Expenses .42% .43 .44 .46 .46
---------------------------------------------------------------------------
Net investment income 4.82% 5.20 5.13 5.20 5.21
SUPPLEMENTAL DATA
Net assets at end of
period (in thousands) $708,609 686,871 671,139 672,041 603,601
</TABLE>
--
35
<PAGE> 38
FINANCIAL HIGHLIGHTS, CONTINUED
ZURICH TAX-FREE MONEY FUND
<TABLE>
<CAPTION>
PER SHARE OPERATING PERFORMANCE
SIX
MONTHS
ENDED
JANUARY
31, YEAR ENDED JULY 31,
1999 -----------------------------------------
(UNAUDITED) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $1.00 1.00 1.00 1.00 1.00
---------------------------------------------------------------------------
Net investment income .02 .03 .03 .03 .03
---------------------------------------------------------------------------
Less dividends
declared .02 .03 .03 .03 .03
---------------------------------------------------------------------------
Net asset value, end
of period $1.00 1.00 1.00 1.00 1.00
----------------------------------------------------------------
TOTAL RETURN
(NOT ANNUALIZED) 1.56% 3.46 3.39 3.44 3.53
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED)
Expenses .35% .36 .37 .39 .40
---------------------------------------------------------------------------
Net investment income 3.07% 3.39 3.33 3.38 3.46
SUPPLEMENTAL DATA
Net assets at end of
period (in thousands) $809,142 815,894 771,315 729,018 760,143
</TABLE>
--
36
<PAGE> 39
special shareholders'
meeting
ZURICH MONEY FUNDS
On December 17, 1998, a special shareholders' meeting was held. Zurich Money
Funds shareholders were asked to vote on two separate issues: approval of the
new Investment Agreement between the Funds and Scudder Kemper Investments, Inc.
and to modify or eliminate certain policies and to eliminate the shareholder
approval requirements as to certain other matters. The following are the
results.
1) APPROVAL OF THE NEW INVESTMENT AGREEMENT BETWEEN THE FUND AND SCUDDER KEMPER
INVESTMENTS, INC. THIS ITEM WAS APPROVED.
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
<S> <C> <C> <C> <C>
Money Market Fund 2,377,728,230 107,106,927 122,880,116
Government Money Fund 345,495,462 19,622,938 20,275,119
Tax-Free Money Fund 422,401,185 24,946,986 17,478,867
</TABLE>
2) TO MODIFY OR ELIMINATE CERTAIN POLICIES AND TO ELIMINATE THE SHAREHOLDER
APPROVAL REQUIREMENT AS TO CERTAIN OTHER MATTERS. THIS ITEM WAS APPROVED.
INVESTMENT OBJECTIVES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,134,319,128 227,033,368 224,980,088 21,382,691
Government Money Fund 306,578,273 40,224,085 37,360,370 1,230,790
Tax-Free Money Fund 374,041,849 45,704,097 40,773,756 4,307,336
</TABLE>
INVESTMENT POLICIES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,133,181,310 227,775,489 225,375,784 21,382,691
Government Money Fund 306,576,374 40,217,338 37,369,016 1,230,790
Tax-Free Money Fund 374,307,798 45,213,838 40,998,066 4,307,336
</TABLE>
DIVERSIFICATION
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,138,733,930 222,204,091 225,394,562 21,382,691
Government Money Fund 306,598,340 40,197,202 37,367,186 1,230,790
Tax-Free Money Fund 375,680,348 43,841,288 40,998,066 4,307,336
</TABLE>
--
37
<PAGE> 40
ZURICH MONEY FUNDS ANNUAL SHAREHOLDERS' MEETING SUMMARY, CONTINUED
BORROWING
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,128,000,868 232,939,852 225,391,863 21,382,691
Government Money Fund 305,957,548 40,837,994 37,367,186 1,230,790
Tax-Free Money Fund 372,819,272 46,702,364 40,998,066 4,307,336
</TABLE>
SENIOR SECURITIES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,143,091,076 217,854,379 225,387,128 21,382,691
Government Money Fund 307,605,153 39,190,389 37,367,186 1,230,790
Tax-Free Money Fund 376,154,719 43,366,917 40,998,066 4,307,336
</TABLE>
CONCENTRATION
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,140,013,202 220,927,518 225,391,863 21,382,691
Government Money Fund 307,528,038 39,267,504 37,367,186 1,230,790
Tax-Free Money Fund 375,446,252 44,075,384 40,998,066 4,307,336
</TABLE>
UNDERWRITING OF SECURITIES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,142,267,935 218,672,785 225,391,863 21,382,691
Government Money Fund 307,649,385 39,146,158 37,367,186 1,230,790
Tax-Free Money Fund 376,297,784 43,223,852 40,998,066 4,307,336
</TABLE>
INVESTMENT IN REAL ESTATE
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,137,155,274 223,785,446 225,391,863 21,382,691
Government Money Fund 306,936,318 39,859,225 37,367,186 1,230,790
Tax-Free Money Fund 375,215,463 44,306,172 40,998,066 4,307,336
</TABLE>
PURCHASE OF COMMODITIES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,132,702,853 228,029,478 225,600,252 21,382,691
Government Money Fund 306,757,018 40,036,694 37,369,016 1,230,790
Tax-Free Money Fund 374,547,891 44,973,745 40,998,066 4,307,336
</TABLE>
--
38
<PAGE> 41
LENDING
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,135,358,592 225,587,233 225,386,758 21,382,691
Government Money Fund 307,109,442 39,686,100 37,367,186 1,230,790
Tax-Free Money Fund 373,333,383 46,188,253 40,998,066 4,307,336
</TABLE>
MARGIN PURCHASES AND SHORT SALES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,116,233,469 244,673,148 225,425,967 21,382,691
Government Money Fund 304,976,171 41,819,371 37,367,186 1,230,790
Tax-Free Money Fund 370,340,845 49,180,791 40,998,066 4,307,336
</TABLE>
PURCHASES OF SECURITIES OF RELATED ISSUERS
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,132,292,077 228,568,958 225,471,549 21,382,691
Government Money Fund 306,721,063 40,074,480 37,367,186 1,230,790
Tax-Free Money Fund 372,359,935 47,161,701 40,998,066 4,307,336
</TABLE>
RESTRICTED AND ILLIQUID SECURITIES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,116,455,894 244,198,195 225,678,495 21,382,691
Government Money Fund 305,032,428 41,763,115 37,367,186 1,230,790
Tax-Free Money Fund 368,951,440 50,570,196 40,998,066 4,307,336
</TABLE>
PURCHASES OF SECURITIES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,133,736,874 227,142,971 225,452,739 21,382,691
Government Money Fund 306,816,564 39,978,978 37,367,186 1,230,790
Tax-Free Money Fund 373,013,652 46,507,983 40,998,066 4,307,336
</TABLE>
PURCHASES OF OPTIONS AND WARRANTS
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,125,694,626 235,166,408 225,471,549 21,382,691
Government Money Fund 305,789,475 41,006,068 37,367,186 1,230,790
Tax-Free Money Fund 371,414,677 48,106,959 40,998,066 4,307,336
</TABLE>
--
39
<PAGE> 42
ZURICH MONEY FUNDS ANNUAL SHAREHOLDERS' MEETING SUMMARY, CONTINUED
INVESTMENT FOR THE PURPOSE OF EXERCISING CONTROL OR MANAGEMENT
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,126,340,318 234,540,969 225,451,296 21,382,691
Government Money Fund 306,011,909 40,783,633 37,367,186 1,230,790
Tax-Free Money Fund 371,724,618 47,797,017 40,998,066 4,307,336
</TABLE>
INVESTMENT IN MINERAL EXPLORATION
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,114,021,420 246,679,704 225,631,460 21,382,691
Government Money Fund 305,256,223 41,539,319 37,367,186 1,230,790
Tax-Free Money Fund 369,392,373 50,129,263 40,998,066 4,307,336
</TABLE>
INVESTMENT IN ISSUERS WITH SHORT HISTORIES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,112,731,234 247,988,700 225,612,650 21,382,691
Government Money Fund 304,527,137 42,268,405 37,367,186 1,230,790
Tax-Free Money Fund 368,649,251 50,872,385 40,998,066 4,307,336
</TABLE>
INVESTMENT IN OTHER INVESTMENT COMPANIES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,130,419,600 230,300,333 225,612,650 21,382,691
Government Money Fund 306,481,240 40,298,232 37,383,256 1,230,790
Tax-Free Money Fund 373,344,441 46,177,195 40,998,066 4,307,336
</TABLE>
INVESTMENT OTHER THAN IN ACCORDANCE WITH OBJECTIVE AND POLICIES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
<S> <C> <C> <C> <C> <C>
Money Market Fund 2,107,926,782 252,793,152 225,612,650 21,382,691
Government Money Fund 304,430,693 42,364,850 37,367,186 1,230,790
Tax-Free Money Fund 369,717,319 49,804,316 40,998,066 4,307,336
</TABLE>
--
40
<PAGE> 43
<PAGE> 44
TRUSTEES AND OFFICERS
TRUSTEES OFFICERS
DANIEL PIERCE MARK S. CASADY MAUREEN E. KANE
Chairman and Trustee President Assistant Secretary
LEWIS A. BURNHAM PHILIP J. COLLORA CAROLINE PEARSON
Trustee Vice President and Assistant Secretary
Secretary
DONALD L. DUNAWAY ANN M. MCCREARY ELIZABETH C. WERTH
Trustee Vice President Assistant Secretary
ROBERT B. HOFFMAN ROBERT C. PECK JR. BRENDA LYONS
Trustee Vice President Assistant Treasurer
DONALD R. JONES KATHRYN L. QUIRK
Trustee Vice President
THOMAS W. LITTAUER FRANK J. RACHWALSKI, JR.
Trustee and Vice President
Vice President
SHIRLEY D. PETERSON LINDA J. WONDRACK
Director Vice President
WILLIAM P. SOMMERS JOHN R. HEBBLE
Trustee Treasurer
- -------------------------------------------------------------------------------
LEGAL COUNSEL VEDDER, PRICE, KAUFMAN & KAMMHOLZ
222 North LaSalle Street
Chicago, IL 60601
- -------------------------------------------------------------------------------
SHAREHOLDER SERVICE KEMPER SERVICE COMPANY
AGENT P.O. Box 419066
Kansas City, MO 64141-6066
- -------------------------------------------------------------------------------
CUSTODIAN AND INVESTORS FIDUCIARY TRUST COMPANY
TRANSFER AGENT 801 Pennsylvania
Kansas City, MO 64105
Printed in the U.S.A. on recycled paper
This report must be preceded or
accompanied by a Zurich Money Funds prospectus
[ZURICH LOGO]
1069530
Telephone: 1-888-ZURICH-1 (987-4241)
ZMF-3(3/99)
