MANAGED GOVERNMENT SECURITIES FUND
MANAGED FEDERAL SECURITIES FUND
MANAGED CASH FUND
MANAGED TAX-FREE FUND
- -------------------------------------------------------------------------------
MID-YEAR REPORT
JUNE 30, 1995
- -------------------------------------------------------------------------------
<PAGE>
Board of Directors
DAVID S. LEE(1) Chairman of the Board; Managing Director,
Scudder, Stevens & Clark, Inc.
EDGAR R. FIEDLER(1) (2) (3) Vice President and Economic Counsellor,
The Conference Board; formerly Assistant
Secretary of the Treasury for Economic Policy
PETER B. FREEMAN(2) (3) Corporate Director and Trustee
ROBERT W. LEAR(2) (3) Executive-in-Residence and Visiting
Professor, Columbia University Graduate
School of Business; Director or Trustee,
Various Organizations
DANIEL PIERCE(1) President; Chairman of the Board, Scudder,
Stevens & Clark, Inc.
(1) Member of Executive Committee
(2) Member of Nominating Committee
(3) Member of Audit Committee
- -------------------------------------------------------------------------------
Officers
DAVID S. LEE Chairman of the Board
DANIEL PIERCE President
THOMAS W. JOSEPH Vice President and Assistant Secretary
THOMAS F. McDONOUGH Vice President and Assistant Secretary
PAMELA A. McGRATH Vice President and Treasurer
IRENE McC. PELLICONI Secretary
2
<PAGE>
August 23, 1995
Dear Shareholder:
The Company provided competitive investment results to its shareholders in
the first half of 1995. The Company, operated for institutions and their
clients, includes four money market funds: Managed Government Securities Fund,
Managed Federal Securities Fund, Managed Cash Fund and Managed Tax-Free Fund.
Each Fund seeks to provide as high a level of current income as is
consistent with preservation of capital and liquidity. The Managed Federal
Securities Fund seeks to maximize income that cannot be subjected to state and
local income taxes by reason of Federal law and the Managed Tax-Free Fund seeks
to provide income exempt from Federal income tax. The Funds differ from each
other in the types of money market instruments in which each invests.
Aggregate net assets of the Funds were $595 million at June 30, 1995,
compared to $573 million at the start of the year. A table showing dividend
payments and other financial information for the six months ended June 30, 1995,
as well as the five years ended December 31, for each Fund, except for the
Managed Federal Securities Fund which commenced operations on July 17, 1991, is
on page 18.
Net asset value per share of each Fund was maintained at $1.00.
Unaudited financial statements for the six months ended June 30, 1995 and a
list of each Fund's investments as of that date are set forth on the following
pages.
If you have any questions concerning your Company or any of its Funds,
please call toll free (800) 854-8525 from any continental state. We will be glad
to hear from you at any time.
/s/David S. Lee
David S. Lee
Chairman
3
<PAGE>
<PAGE>
MANAGED GOVERNMENT SECURITIES FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
ANNUALIZED MATURITY PRINCIPAL VALUE
YIELD DATE AMOUNT (NOTE 2A)
---------- -------- --------- -----------
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS -- 20.8%
Bear Stearns & Co., dated 6/29/95 (proceeds at
maturity $5,005,863) collateralized by $5,875,000
FNMA, 5.5%, 2/1/09 and $50,000 FNMA,
7.5%, 1/1/10 (note 3).................................. 6.11% 7/6/95 $5,000,000 $ 5,000,000
Donaldson, Lufkin & Jenrette Securities Corp., dated
6/30/95 (proceeds at maturity $8,641,369)
collateralized by $5,855,000 U.S. Treasury Bond,
12.75%, 11/15/10 (note 3).............................. 6.15 7/3/95 8,637,000 8,637,000
-----------
TOTAL REPURCHASE AGREEMENTS (cost $13,637,000)....................................................... 13,637,000
-----------
U.S. AGENCY OBLIGATIONS -- 79.8%
Federal National Mortgage Assn. Variable Rate Note............. 5.96 9/14/95* 5,000,000 5,000,000
Private Export Funding Corp.................................... 5.85 7/14/95 5,000,000 4,989,438
Federal Farm Credit Bank Discount Note......................... 5.84 7/12/95 4,000,000 3,992,862
Federal Home Loan Bank Discount Note........................... 5.84 7/25/95 4,000,000 3,984,427
Federal National Mortgage Assn. Discount Note.................. 5.88 7/12/95 2,000,000 1,996,407
Federal Home Loan Mortgage Corp. Discount Note................. 5.89 7/5/95 7,000,000 6,995,420
Federal Home Loan Mortgage Corp. Discount Note................. 5.91 7/12/95 3,000,000 2,994,582
Federal Home Loan Mortgage Corp. Discount Note................. 5.85 8/7/95 4,000,000 3,975,950
Federal Home Loan Mortgage Corp. Discount Note................. 5.86 8/9/95 4,000,000 3,974,607
Federal Home Loan Mortgage Corp. Discount Note................. 5.91 9/5/95 2,000,000 1,978,312
Federal National Mortgage Assn. Discount Note.................. 5.86 8/2/95 3,000,000 2,984,373
Federal National Mortgage Assn. Discount Note.................. 6.02 8/31/95 5,000,000 4,948,997
Federal National Mortgage Assn. Discount Note.................. 5.94 10/19/95 2,650,000 2,601,902
Federal National Mortgage Assn. Discount Note.................. 5.80 10/25/95 1,950,000 1,913,557
------------
TOTAL U.S. AGENCY OBLIGATIONS (cost $52,330,834)..................................................... 52,330,834
-----------
TOTAL INVESTMENTS -- 100.6% (cost $65,967,834)**..................................................... 65,967,834
------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
VALUE
(NOTE 2A)
-----------
<S> <C>
OTHER ASSETS AND LIABILITIES -- (0.6%)
CASH......................................................................................... $ 453
Interest receivable and other assets......................................................... 62,433
Dividend payable............................................................................. (295,670)
Payable for Capital Stock redeemed........................................................... (1,365)
Management fee payable (note 4).............................................................. (6,701)
Accrued expenses (note 4).................................................................... (157,300)
-----------
(398,150)
-----------
NET ASSETS -- 100.0%
Applicable to 65,569,684 shares of $.001 par value Capital Stock outstanding;
3,000,000,000 shares authorized (note 7)............................................. $65,569,684
===========
NET ASSET VALUE PER SHARE.................................................................... $ 1.00
===========
<FN>
* Date of next interest rate change.
** Cost for federal income tax purposes.
</FN>
</TABLE>
See notes to financial statements.
5
<PAGE>
MANAGED FEDERAL SECURITIES FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
ANNUALIZED MATURITY PRINCIPAL VALUE
YIELD DATE AMOUNT (NOTE 2A)
---------- -------- ---------- -----------
<S> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 100.7%
U.S. Treasury Bill................................................... 5.57% 7/27/95 $ 156,000 $ 155,373
U.S. Treasury Bill................................................... 5.46 8/17/95 1,324,000 1,314,561
U.S. Treasury Bill................................................... 5.31 8/31/95 9,960,000 9,870,385
-----------
TOTAL U.S. TREASURY OBLIGATIONS (cost $11,340,319)**......................................................... 11,340,319
-----------
OTHER ASSETS AND LIABILITIES -- (0.7%)
Other assets................................................................................................. 2,471
Bank overdraft............................................................................................... (197)
Dividend payable............................................................................................. (44,586)
Accrued expenses (note 4).................................................................................... (38,053)
-----------
(80,365)
-----------
NET ASSETS -- 100.0%
Applicable to 11,259,954 shares of $.001 par value Capital Stock
outstanding; 1,000,000,000 shares authorized (note 7)................................................ $11,259,954
===========
NET ASSET VALUE PER SHARE.................................................................................... $ 1.00
===========
<FN>
** Cost for federal income tax purposes.
</FN>
</TABLE>
See notes to financial statements.
6
<PAGE>
MANAGED CASH FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
ANNUALIZED MATURITY PRINCIPAL VALUE
YIELD DATE AMOUNT (NOTE 2A)
---------- -------- ----------- -----------
<S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSIT -- 13.0%
Banque Paribas (Yankee)........................................ 6.25% 8/1/95 $ 7,000,000 $ 7,000,165
Canadian Imperial Bank of Commerce............................. 5.93 8/7/95 7,000,000 7,000,000
Commerzbank U.S. Finance Company (Yankee)...................... 6.49 9/11/95 8,000,000 8,007,656
Dresdner (Yankee).............................................. 6.26 10/2/95 7,000,000 7,000,000
National Bank of Detroit....................................... 6.29 10/16/95 8,000,000 7,999,166
National Westminster Bank PLC (Yankee)......................... 6.31 10/24/95 7,000,000 7,000,433
Societe Generale (Yankee)...................................... 5.98 9/12/95 7,000,000 7,000,000
-----------
TOTAL CERTIFICATES OF DEPOSIT (cost $51,007,420)......................................................... 51,007,420
-----------
COMMERCIAL PAPER -- 57.2%
ABN--AMRO North American Finance Inc........................... 5.75 11/22/95 7,000,000 6,839,000
AT&T Corp...................................................... 6.02 9/5/95 7,000,000 6,922,743
Abbey National North America................................... 5.73 10/3/95 7,000,000 6,895,350
American General Finance Corp.................................. 5.94 7/10/95 7,000,000 6,989,605
Associates Corp. of North America.............................. 5.85 7/19/95 7,000,000 6,979,525
BNP U.S. Finance Corp.......................................... 6.25 7/3/95 12,000,000 11,995,833
Banc One Corp.................................................. 5.93 8/23/95 6,000,000 5,947,618
Barclays U.S. Funding Corp..................................... 5.94 7/14/95 7,000,000 6,984,985
BellSouth Telecommunications Inc............................... 6.02 9/22/95 7,000,000 6,902,844
Campbell Soup Co............................................... 5.88 11/6/95 7,000,000 6,853,653
Chevron Oil Finance Co......................................... 5.85 8/18/95 7,000,000 6,945,400
Ciesco L.P..................................................... 5.95 7/28/95 7,000,000 6,968,763
CoreStates Capital Corp........................................ 6.03 8/11/95 5,000,000 4,965,663
Credit Argicole U.S.A.......................................... 5.81 8/9/95 7,000,000 6,955,941
Dean Witter, Discover & Co..................................... 6.05 7/3/95 7,000,000 6,997,647
Deutsche Bank Financial Inc.................................... 5.88 7/6/95 7,000,000 6,994,283
Ford Credit Receivables Funding Inc............................ 5.89 8/25/95 7,000,000 6,937,010
General Electric Capital Corp.................................. 5.87 9/15/95 7,000,000 6,913,254
Household Finance Corp......................................... 5.85 7/12/95 7,000,000 6,987,488
J.P. Morgan & Co. Inc.......................................... 5.88 8/4/95 7,000,000 6,961,127
Nestle Capital Corp............................................ 5.88 11/6/95 7,000,000 6,853,653
Norwest Corp................................................... 6.00 8/14/95 7,000,000 6,948,667
Oesterreische Kontrollbank A.G................................. 5.78 9/29/95 7,000,000 6,898,850
PREFCO......................................................... 6.00 8/8/95 7,000,000 6,955,667
Pitney Bowes Credit Corp....................................... 5.91 7/31/95 7,000,000 6,965,525
Prudential Funding Corp........................................ 6.03 9/18/95 7,000,000 6,907,373
Retailer Funding Corp.......................................... 5.97 7/26/95 7,000,000 6,970,979
Rincon Securities Inc. (LOC Trust Co. of Georgia).............. 5.97 8/18/95 7,000,000 6,944,280
Santander Finance Inc. (Delaware )............................. 5.60 12/22/95 7,000,000 6,810,533
</TABLE>
7
<PAGE>
Managed Cash Fund (continued)
<TABLE>
<CAPTION>
ANNUALIZED MATURITY PRINCIPAL VALUE
YIELD DATE AMOUNT (NOTE 2A)
---------- -------- ----------- ------------
<S> <C> <C> <C> <C>
Transamerica Finance Corp............................................. 6.03% 9/15/95 $ 7,000,000 $ 6,910,890
U.S. West Capital Funding, Inc........................................ 6.01 7/21/95 7,000,000 6,976,628
United Parcel Services of America Inc................................. 5.85 9/1/95 7,000,000 6,929,475
------------
TOTAL COMMERCIAL PAPER (cost $224,010,252).................................................................... 224,010,252
------------
REPURCHASE AGREEMENT -- 13.9%
Bear Stearns & Co., Inc. dated
6/26/95 (proceeds at maturity $18,021,175)
collateralized by $9,699,000 FNMA, 7.5%, 8/1/08;
$3,760,000 FHLMC, 7.5%, 6/1/09, and $4,541,000
FHLMC, 7%, 4/1/08............................................. 6.13 7/3/95 18,000,000 18,000,000
Donaldson, Lufkin & Jenrette Securities Corp.,
dated 6/30/95 (proceeds at maturity $36,437,422)
collateralized by $35,873,000 U.S. Treasury Note,
6.25%, 8/31/96................................................ 6.15 7/3/95 36,419,000 36,419,000
------------
TOTAL REPURCHASE AGREEMENT (cost $54,419,000) (note 3)........................................................ 54,419,000
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 10.8%
Federal Home Loan Mortgage Corp. Discount Note........................ 5.67 10/02/95 5,000,000 4,926,763
Student Loan Marketing Association Variable Rate Note................. 5.68 7/4/95* 15,000,000 15,000,000
Student Loan Marketing Association Variable Rate Note................. 5.70 7/4/95* 22,400,000 22,392,888
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (cost $42,319,651)................................................... 42,319,651
------------
SHORT TERM NOTES -- 7.6%
Adesa Funding Corp. (LOC Banc One).................................... 6.07 7/6/95* 3,192,000 3,192,000
Fifth Third Bank...................................................... 6.08 10/27/95 7,000,000 7,000,000
Harris Trust and Savings Bank......................................... 6.06 8/25/95 7,000,000 7,000,093
MMR Funding I......................................................... 6.07 7/6/95* 5,500,000 5,500,000
Wachovia Bank......................................................... 6.03 8/28/95 7,000,000 7,000,000
------------
TOTAL SHORT TERM NOTES (cost $29,692,093)..................................................................... 29,692,093
------------
TOTAL INVESTMENTS -- 102.5% (cost $401,448,416)**............................................................. 401,448,416
------------
OTHER ASSETS AND LIABILITIES -- (2.5%)
Cash.......................................................................................................... 2,717
Receivable for Capital Stock sold............................................................................. 373,795
Interest receivable and other assets.......................................................................... 1,199,750
Dividend payable.............................................................................................. (1,767,628)
Payable for investments purchased............................................................................. (6,895,350)
Payable for Capital Stock redeemed............................................................................ (2,639,892)
Management fee payable (note 4)............................................................................... (71,647)
Accrued expenses (note 4)..................................................................................... (284,419)
------------
(10,082,674)
------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
VALUE
(NOTE 2A)
------------
<S> <C>
NET ASSETS -- 100.0%
Applicable to 391,527,822 shares of $.001 par value Capital Stock outstanding;
3,000,000,000 shares authorized (note 7)............................................ $391,365,742
============
NET ASSET VALUE PER SHARE................................................................... $ 1.00
============
<FN>
* Date of next interest rate change.
** Cost for federal income tax purposes.
</FN>
</TABLE>
ABBREVIATIONS USED IN THE STATEMENT:
LOC Letter of Credit
See notes to financial statements.
9
<PAGE>
MANAGED TAX-FREE FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1995
<TABLE>
<CAPTION>
CREDIT PRINCIPAL VALUE
RATING* SHORT-TERM MUNICIPAL SECURITIES--101.8% AMOUNT (NOTE 2A)
- ------- ---------- -----------
<S> <C> <C> <C>
ARIZONA -- 6.9%
VMIG-1 Pima County Industrial Development Authority Series 1985 SFE
Technologies Project VRDN, 4.5%, 12/1/05.................................... $2,700,000 $ 2,700,000
A-1+ Salt River Agricultural Improvement Distric TECP, 4.15%, 7/20/95............... 3,006,000 3,006,000
A-1+ Salt River Project Electric System Revenue Refunding Series 1992-A
TOB, 4.35%, 1/1/09.......................................................... 3,000,000 3,000,000
-----------
TOTAL ARIZONA............................................................ 8,706,000
-----------
ARKANSAS -- 0.1%
VMIG-1 Jonesboro Industrial Revenue Bond Farr Co. Project VRDN, 4.25%, 12/1/01........ 170,000 170,000
-----------
CALIFORNIA -- 19.4%
A-1 Corona Multi-Family Housing Revenue Series 1985-B VRDN,
4.625%, 1/1/05.............................................................. 2,000,000 2,000,000
MIG-1 Fresno Unified School District TRAN, 4.75%, 7/19/95............................ 1,950,000 1,950,562
A-1 Huntington Beach Multi-Family Housing Revenue River Meadows
Apartments Series B VRDN, 4.875%, 10/1/05................................... 6,800,000 6,800,000
SS&C Lancaster Household Bank Project Antelope Pines Estate Series 1984-A
VRDN, 4.625%, 11/1/04....................................................... 3,000,000 3,000,000
MIG-1 Los Angeles County TRAN, 4.5%, 7/1/96.......................................... 2,000,000 2,013,400
SP-1+ Los Angeles County Unified School District TRAN, 4.5%, 7/10/95................. 1,000,000 1,000,214
SP-1+ Los Angeles County Local Educational Agencies Pool TRAN 4.75%, 7/5/96.......... 1,000,000 1,006,220
SS&C San Macros Multi-Family Housing Revenue Household Bank Project
Series 1985 VRDN, 4.625%, 6/1/05............................................ 6,900,000 6,900,000
-----------
TOTAL CALIFORNIA......................................................... 24,670,396
-----------
COLORADO -- 4.8%
VMIG-1 Colorado Student Loan Obligation Bond Authority Series 1990-C VRDN,
4.3%, 3/1/00................................................................ 4,450,000 4,450,000
A-1 Regional Transportation District Special Passenger Fair Revenue Bond
VRDN, 4.3%, 6/1/99.......................................................... 1,700,000 1,700,000
-----------
TOTAL COLORADO........................................................... 6,150,000
-----------
CONNECTICUT -- 1.5%
AAA Hartford Redevelopment Agency Underwood Towers Project Series 1990
VRDN FSA Insured, 4.1%, 6/1/20.............................................. 2,000,000 2,000,000
-----------
DISTRICT OF COLUMBIA -- 0.6%
A-1+ District of Columbia GO Refunding Bonds Series A-4 VRDN, 4.4%, 10/1/07......... 400,000 400,000
A-1+ District of Columbia GO Refunding Bonds Series A-5 VRDN, 4.4%, 10/1/07......... 300,000 300,000
-----------
TOTAL DISTRICT OF COLUMBIA............................................... 700,000
-----------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
CREDIT PRINCIPAL VALUE
RATING* AMOUNT (NOTE 2A)
- ------- --------- ---------
<S> <C> <C> <C>
FLORIDA -- 7.8%
VMIG-1 Broward County Housing Finance Authority Welleby Apartments
Project VRDN, 4.05%, 12/1/06....................................................... $1,000,000 $ 1,000,000
A-1+ Dade County Water and Sewer System Revenue Series 1994 VRDN FGIC
Insured, 4.2%, 10/5/22............................................................. 2,800,000 2,800,000
A-1 Jacksonville Pollution Control Revenue Power and Light TECP,
4.15%, 8/29/95..................................................................... 2,100,000 2,100,000
A-1+ Orange County Waste Water System Series 1990-A TECP MBIA Insured,
4.2%, 7/12/95...................................................................... 2,000,000 2,000,000
A-1+ Orlando Waste Water Systems Series 1990-A TECP, 4.15%, 8/24/95....................... 2,000,000 2,000,000
------------
TOTAL FLORIDA................................................................... 9,900,000
------------
GEORGIA -- 2.9%
A-1 Savannah Downtown Development Authority VRDN, 4.5%, 5/1/15........................... 1,000,000 1,000,000
AAA Turner County Industrial Development Revenue Coats & Clark Inc.
Series 1984 VRDN MBIA Insured, 3.9%, 10/1/98....................................... 2,700,000 2,700,000
------------
TOTAL GEORGIA................................................................... 3,700,000
------------
ILLINOIS -- 7.4%
VMIG-1 Illinois Educational Facilities Authority University Pooled Finance Program
VRDN FGIC Insured, 4.45%, 12/1/05.................................................. 4,710,000 4,710,000
A-1+ Illinois Health Facilities Authority Rush-Presbyterian/St. Luke's
Medical Center TECP, 4.15%, 7/21/95................................................ 2,100,000 2,100,000
SS&C Pekin Industrial Development Revenue Refunding Bond BOC Group
Series 1992 VRDN, 4.15%, 9/1/12.................................................... 2,600,000 2,600,000
------------
TOTAL ILLINOIS.................................................................. 9,410,000
------------
IOWA -- 2.8%
SP-1+ Iowa School Corporation Warrant Certificates Series 1994-A Capital
Guaranty Insured, 4.25%, 7/17/95................................................... 2,000,000 2,000,549
SP-1+ Iowa School Corporation Warrant Certificates Cash Anticipation Program
Capital Guaranty Insured VRDN, 4.75%, 6/28/96...................................... 1,500,000 1,512,884
------------
TOTAL IOWA...................................................................... 3,513,433
------------
LOUISIANA -- 0.7%
P-1 West Baton Rouge Parish Industrial District #3 Dow Chemical Company
Project Series B VRDN, 4.25%, 12/1/16.............................................. 900,000 900,000
------------
MARYLAND -- 1.3%
A-1 Ann Arundel County Port Facilities Revenue Baltimore Gas and
Electric TECP, 4.2%, 9/12/95....................................................... 1,600,000 1,600,000
------------
MASSACHUSETTS -- 0.8%
SS&C Commonwealth of Massachusetts GO Consolidated Loan
Series 1994-C, 5.5%, 11/1/95....................................................... 1,000,000 1,002,588
------------
</TABLE>
11
<PAGE>
MANAGED TAX-FREE FUND (CONTINUED)
<TABLE>
<CAPTION>
CREDIT PRINCIPAL VALUE
RATING* AMOUNT (NOTE 2A)
- ------- --------- ---------
<S> <C> <C> <C>
MISSOURI -- 4.3%
A-1+ Missouri Health and Education Facilities Authority Washington
University Series 1989-B VRDN, 4.6%, 3/1/17........................................ $1,400,000 $ 1,400,000
P-1 Missouri Environmental Improvement Authority Union Electric OP,
4%, 6/1/14......................................................................... 2,000,000 2,000,000
A-1+ Missouri Health and Educational Facilities Health Facilities Revenue
St Lukes Episcopal-Presbyterian Hospital VRDN FGIC Insured,
4.5%, 12/1/16...................................................................... 1,000,000 1,000,000
P-1 St. Louis Industrial Development Authority Kirkwood Project Series
1985 VRDN, 4.5%, 12/1/15........................................................... 1,000,000 1,000,000
------------
TOTAL MISSOURI.................................................................. 5,400,000
------------
MONTANA -- 1.3%
A-1+ Forsyth Portland General Electric Company Series C VRDN, 4.05%, 6/1/13............... 1,600,000 1,600,000
------------
NEW HAMPSHIRE -- 1.6%
A-1+ New Hampshire Business Finance Authority Connecticut Light & Power
VRDN, 4.15%, 12/1/22............................................................... 2,000,000 2,000,000
------------
NEW MEXICO -- 1.0%
A-1 Belen Industrial Revenue Refunding Bond United Desiccants Project
VRDN, 4.15%, 4/1/00................................................................ 1,300,000 1,300,000
------------
OHIO -- 1.2%
VMIG-1 Cuyahoga County Health & Education University Hospital of Cleveland
VRDN, 4.2%, 1/1/16................................................................. 1,500,000 1,500,000
------------
OREGON -- 1.2%
VMIG-1 Oregon General Obligation Veterans Welfare Series 1973-E VRDN,
4.25%, 12/1/16..................................................................... 1,500,000 1,500,000
------------
PENNSYLVANIA -- 9.4%
VMIG-1 De Valley Regional Finance Authority Series 1985-A VRDN, 4.35%, 12/1/20.............. 1,600,000 1,600,000
SS&C Elk County Industrial Development Authority Stackpole Corporation
Series 1989 VRDN, 4.48%, 3/1/04.................................................... 750,000 750,000
A-1+ Emmaus General Authority Local Government Revenue Bond Pool Program,
Series 1989-G VRDN, 4.2%, 3/1/24................................................... 6,500,000 6,500,000
SP-1+ Commonwealth of Pennsylvania System of Higher Education Temple
University Series 1995, 5%, 5/22/96................................................ 3,000,000 3,017,925
------------
TOTAL PENNSYLVANIA.............................................................. 11,867,925
------------
TEXAS -- 14.0%
A-1+ Austin Utility Systems Revenue TECP, 4.2%, 10/5/95................................... 4,000,000 4,000,000
SS&C Montgomery County Industrial Development Authority Medical
Manufacturing Partners Project Series 1987, 4.25%, 8/1/17.......................... 3,740,000 3,740,000
A-1 North Central Texas Health Facilities Authority Methodist Hospitals
Series 1991-B TECP, 4.15%, 8/18/95................................................. 1,200,000 1,200,000
A-1 North Central Texas Health Development Corp. Methodist Hospital of Dallas
VRDN MBIA Insured, 4.5%, 10/1/15................................................... 1,300,000 1,300,000
A-1+ Port Development Corp. Marine Terminal Refunding Revenue Stolt
Terminals Series 1989 VRDN, 4.15%, 1/15/14......................................... 1,550,000 1,550,000
SP-1+ State of Texas Series 1994 TRAN, 5%, 8/31/95......................................... 6,000,000 6,009,120
------------
TOTAL TEXAS...................................................................... 17,799,120
------------
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
CREDIT PRINCIPAL VALUE
RATING* AMOUNT (NOTE 2A)
- ------- --------- ---------
<S> <C> <C> <C>
UTAH -- 4.3%
AAA Intermountain Power Agency Series 1985-G, 8.75%, 7/1/98,
Prerefunded 7/1/95................................................................. $1,000,000 $ 1,020,000
A-1 Salt Lake City Pooled Hospital Financing Program TECP, 4.15%, 7/27/95................ 1,000,000 1,000,000
VMIG-1 Utah Housing Finance Agency Single-Family Mortgage Bond Series 1993-D
VRDN, 4.2%, 7/1/16................................................................. 3,400,000 3,400,000
------------
TOTAL UTAH...................................................................... 5,420,000
------------
VERMONT -- 5.4%
SS&C Vermont Industrial Development Authority Vermont Marble Co. VRDN,
4.48%, 12/1/04..................................................................... 4,170,000 4,170,000
VMIG-1 Vermont Student Assistance Corporation VRDN, 4%, 1/1/04.............................. 2,700,000 2,700,000
------------
TOTAL VERMONT................................................................... 6,870,000
------------
VIRGINIA -- 1.1%
SP-1+ York County Virginia Electric Power Company TECP, 3.15%, 8/7/95...................... 1,400,000 1,400,000
------------
TOTAL INVESTMENT PORTFOLIO -- 101.8% (Cost $129,079,462)**........................... $129,079,462
------------
OTHER ASSETS AND LIABILITIES -- (1.8)%
Cash........................................................................................... $ 130,352
Interest receivable and other assets........................................................... 1,172,514
Dividend payable............................................................................... (334,209)
Payable for Investments purchased.............................................................. (3,019,620)
Payable for Capital Stock redeemed............................................................. (2,600)
Management fee payable (note 4)................................................................ (44,247)
Accrued expenses (note 4)...................................................................... (161,089)
------------
(2,258,899)
------------
NET ASSETS -- 100.0%
Applicable to 126,820,563 shares of $.001 par value Capital Stock outstanding;
1,000,000,000 shares authorized (note 7)..................................................... $126,820,563
============
NET ASSET VALUE PER SHARE...................................................................... $1.00
=====
<FN>
** Cost for federal income tax purposes.
</FN>
</TABLE>
<TABLE>
- ----------------------------------------------------------------------------------------------------------------------------------
* CREDIT RATINGS SHOWN ARE EITHER BY MOODY'S INVESTORS SERVICE, INC., STANDARD & POOR'S
CORPORATION OR SCUDDER:
<CAPTION>
MOODY'S STANDARD & POOR'S
<S> <C> <C>
P-1 A-1/A-1+ Commercial paper of the highest quality.
Aaa AAA Judged to be the best quality and carry the smallest amount of investment risk.
Aa AA Judged to be of high quality by all standards. Moody's applies numerical modifiers 1, 2, and 3 in
each rating classification. The modifier 1 indicates that the security ranks in the higher end of its
rating category, and the modifier 3 indicates that the security ranks in the lower end of its rating
category. Standard & Poor's assigns a corresponding + or - to indicate the issue's ranking in its
associated category.
MIG-1 SP-1/SP-1+ Short-term tax-exempt instrument of the best quality with strong protection.
VMIG-1 Short-term tax-exempt variable rate demand instrument of the best quality with strong protection.
</TABLE>
13
<PAGE>
MANAGED TAX-FREE FUND (CONTINUED)
ABBREVIATIONS USED IN THE STATEMENT:
<TABLE>
<S> <C> <C> <C>
TECP Tax Exempt Commercial Paper VRDN Variable Rate Demand Note
GO General Obligation SS&C These securities are not rated by either Moody's or
Standard & Poor's. Scudder has determined that these
MP, OP Security with a "mandatory or optional put" securities are of comparable quality to rated acceptable
feature; date shown represents the earliest date the notes on a cash flow basis and are of appropriate credit
security may be redeemed or the interest rate will be for the standards required by the Fund's investment
reset if the security is not redeemed objective.
RAN Revenue Anticipation Note TOB Tender Option Bond is a security with a periodic
"put feature"
BAN Bond Anticipation Note TRAN Tax Revenue Anticipation Note
TAN Tax Anticipation Note
</TABLE>
See notes to financial statements.
14
<PAGE>
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1995
<TABLE>
<CAPTION>
MANAGED MANAGED
GOVERNMENT FEDERAL MANAGED MANAGED
SECURITIES SECURITIES CASH TAX-FREE
FUND FUND FUND FUND
---------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest Income ......................................... $2,054,501 $322,897 $11,783,206 $2,736,554
---------- -------- ----------- ----------
EXPENSES (note 2c):
Management fee (note 4) ................................. 24,718 -- 493,943 269,282
Shareholder services (notes 4 and 5) .................... 78,716 13,782 349,459 149,745
Directors' fees and expenses (note 4) ................... 8,043 5,461 13,794 13,020
Custodian and Accounting fees (note 4) .................. 25,844 3,427 51,146 40,779
Professional services ................................... 26,055 7,025 95,849 40,574
Reports to shareholders ................................. 2,877 498 16,148 5,630
Amortization of organization expenses (Note 2e) ......... -- 1,180 -- --
Registration fees ....................................... 11,920 8,945 21,564 12,591
Miscellaneous ........................................... 9,373 3,434 15,947 6,499
---------- -------- ----------- ----------
Total expenses ..................................... 187,546 43,752 1,057,850 538,120
---------- -------- ----------- ----------
NET INVESTMENT INCOME AND INCREASE IN NET
ASSETS FROM OPERATIONS ................................ $1,866,955 $279,145 $10,725,356 $2,198,434
========== ======== =========== ==========
</TABLE>
See notes to financial statements.
15
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
<TABLE>
<CAPTION>
MANAGED GOVERNMENT MANAGED FEDERAL
SECURITIES FUND SECURITIES FUND
----------------------------- --------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
6/30/95 12/31/94 6/30/95 12/31/94
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income and increase
in net assets from operations................. $ 1,866,955 $ 2,722,387 $ 279,145 $ 415,899
Dividends (notes 2b and 2d)..................... (1,866,955) (2,722,387) (279,145) (415,899)
----------- ----------- ----------- -----------
- - - -
----------- ----------- ----------- -----------
CAPITAL STOCK TRANSACTIONS (NOTE 7):
Proceeds from sale of shares.................... 105,021,398 269,803,425 8,817,118 23,109,819
Net asset value of shares issued in
reinvestment of dividends..................... 1,304,134 2,043,089 240,264 332,762
----------- ----------- ----------- -----------
106,325,532 271,846,514 9,057,382 23,442,581
Cost of shares redeemed......................... (109,312,825) (295,383,364) (10,602,655) (23,414,968)
----------- ----------- ----------- -----------
Increase (decrease) in net assets
from Capital Stock transactions............... (2,987,293) (23,536,850) (1,545,273) 27,613
----------- ----------- ----------- -----------
Total increase (decrease) in net assets........... (2,987,293) (23,536,850) (1,545,273) 27,613
----------- ----------- ----------- -----------
NET ASSETS:
Beginning of period............................... 68,556,977 92,093,827 12,805,227 12,777,614
----------- ----------- ----------- -----------
End of period..................................... $65,569,684 $68,556,977 $11,259,954 $12,805,227
=========== =========== =========== ===========
</TABLE>
See notes to financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
MANAGED CASH FUND MANAGED TAX-FREE FUND
- ---------------------------------- ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
6/30/95 12/31/94 6/30/95 12/31/94
- --------------- --------------- ------------- -------------
<S> <C> <C> <C>
$ 10,725,356 $ 13,496,739 $ 2,198,434 $ 2,812,451
(10,725,356) (13,496,739) (2,198,434) (2,812,451)
- --------------- --------------- ------------- -------------
-- -- -- --
- --------------- --------------- ------------- -------------
1,037,786,954 1,838,028,319 343,039,194 586,552,129
5,881,165 6,568,961 1,107,978 1,385,261
- --------------- --------------- ------------- -------------
1,043,668,119 1,844,597,280 344,147,172 587,937,390
(1,019,409,307) (1,801,334,141) (341,923,341) (570,047,516)
- --------------- --------------- ------------- -------------
24,258,812 43,263,139 2,223,831 17,889,874
- --------------- --------------- ------------- -------------
24,258,812 43,263,139 2,223,831 17,889,874
367,106,930 323,843,791 124,596,732 106,706,858
- --------------- --------------- ------------- -------------
$ 391,365,742 $ 367,106,930 $ 126,820,563 $ 124,596,732
=============== =============== ============= =============
</TABLE>
17
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING TABLE INCLUDES SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT
EACH PERIOD AND OTHER PERFORMANCE INFORMATION DERIVED FROM THE FINANCIAL
STATEMENTS.
<TABLE>
<CAPTION>
RATIO OF RATIO OF NET
NET ASSET NET ASSET OPERATING INVESTMENT NET ASSETS
VALUE, AT NET VALUE, AT EXPENSES INCOME END OF
BEGINNING INVESTMENT DIVIDENDS END TOTAL TO AVERAGE TO AVERAGE PERIOD
PERIOD OF PERIOD INCOME PAID OF PERIOD RETURN NET ASSETS(a) NET ASSETS (MILLIONS)
- ----------------------------- --------- ---------- ---------- --------- --------- ------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MANAGED GOVERNMENT
SECURITIES FUND
Six months ended 6/30/95... $ 1.00 $ .027 $ (.027) $ 1.00 2.75%(c)* 0.55%(b) 5.48%(b) $ 66
Year ended 12/31/94........ 1.00 .037 (.037) 1.00 3.75* 0.55 3.61 69
Year ended 12/31/93........ 1.00 .026 (.026) 1.00 2.68* 0.55 2.65 92
Year ended 12/31/92........ 1.00 .035 (.035) 1.00 3.51* 0.55 3.39 151
Year ended 12/31/91........ 1.00 .056 (.056) 1.00 5.65* 0.55 5.54 87
Year ended 12/31/90........ 1.00 .075 (.075) 1.00 7.73* 0.73 7.48 82
MANAGED FEDERAL
SECURITIES FUND
Six months ended 6/30/95... 1.00 .024 (.024) 1.00 2.38(c)* 0.74(b) 4.73(b) 11
Year ended 12/31/94........ 1.00 .032 (.032) 1.00 3.24* 0.69 3.19 13
Year ended 12/31/93........ 1.00 .024 (.024) 1.00 2.45* 0.52 2.43 13
Year ended 12/31/92........ 1.00 .030 (.030) 1.00 3.02* 0.53 3.00 12
7/17/91(d) to 12/31/91..... 1.00 .021 (.021) 1.00 4.80(b)* 0.52(b) 4.67(b) 14
MANAGED CASH FUND
Six months ended 6/30/95... 1.00 .028 (.028) 1.00 2.80(c)* 0.55(b) 5.58(b) 391
Year ended 12/31/94........ 1.00 .038 (.038) 1.00 3.86* 0.55 3.84 367
Year ended 12/31/93........ 1.00 .028 (.028) 1.00 2.81* 0.55 2.78 324
Year ended 12/31/92........ 1.00 .037 (.037) 1.00 3.74* 0.55 3.76 305
Year ended 12/31/91........ 1.00 .059 (.059) 1.00 6.07* 0.55 5.93 347
Year ended 12/31/90........ 1.00 .076 (.076) 1.00 7.92* 0.67 7.64 385
MANAGED TAX-FREE FUND
Six months ended 6/30/95... 1.00 .016 (.016) 1.00 1.63(c) 0.80(b) 3.27(b) 127
Year ended 12/31/94........ 1.00 .023 (.023) 1.00 2.29 0.77 2.26 125
Year ended 12/31/93........ 1.00 .018 (.018) 1.00 1.85 0.78 1.83 107
Year ended 12/31/92........ 1.00 .025 (.025) 1.00 2.56 0.77 2.54 91
Year ended 12/31/91........ 1.00 .042 (.042) 1.00 4.20 0.75 4.14 107
Year ended 12/31/90........ 1.00 .053 (.053) 1.00 5.47 0.77 5.33 135
<FN>
(a) The annualized operating expense ratio including expenses reimbursed, management fee and other expenses not imposed
would have been, for the Managed Government Securities Fund, Managed Federal Securities Fund and Managed Cash Fund,
0.88%, 1.37% and 0.69%, for the six months ended June 30, 1995, respectively; 0.84%, 1.22% and 0.68%, for the Year
ended December 31, 1994, respectively; 0.77%, 1.14% and 0.66%, for the year ended December 31, 1993, respectively;
0.76%, 1.07% and 0.64%, for the year ended December 31, 1992, respectively; 0.80%, 0.92% and 0.64%, for the year
ended December 31, 1991, respectively; for the Managed Government Securities Fund and Managed Cash Fund, 0.80% and
0.70%, for the year ended December 31, 1990.
(b) Annualized
(c) Not annualized
(d) Date commenced operations.
* Total returns are higher, for the periods indicated, due to the maintenance of the Fund's expenses.
</FN>
</TABLE>
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION
Scudder Fund, Inc. (the "Company") is an open-end diversified management
investment company which currently includes four active money market investment
portfolios: Managed Government Securities Fund, Managed Federal Securities
Fund, Managed Cash Fund, and Managed Tax-Free Fund (collectively, the "Funds").
2. SIGNIFICANT ACCOUNTING POLICIES
Significant accounting policies followed by the Company are:
(a) Security Valuation - Each of the Funds values its investments using
the amortized cost method, which involves initially valuing an investment at
its cost and thereafter assuming a constant amortization to maturity of any
premium or discount. This method results in a value approximating market.
(b) Federal Income Taxes - The Company's policy is to qualify each Fund
as a regulated investment company under the Internal Revenue Code and to
distribute all taxable and tax-exempt income, including any realized net capital
gains, to shareholders. Therefore, no Federal income tax provision is required.
(c) Allocation of Expenses - Expenses not directly chargeable to a
specific Fund are allocated primarily on the basis of relative net assets of the
Company.
(d) Dividends - Dividends from net investment income are declared each
business day to shareholders of record that day for payment on the first
business day of the following month.
(e) Organization Costs - Costs incurred by the Fund in connection with
its organization and initial registration of shares have been deferred and
are being amortized on a straight-line basis over a five-year period.
(f) Other - Investment transactions are recorded on trade dates.
Interest income, including the accretion or amortization of discount or premium,
is recorded on the accrual basis. Discounts or premiums on securities purchased
are accreted or amortized, respectively, on a straight line basis over the life
of the respective securities. Distributions to shareholders are recorded on the
ex-dividend dates.
The Managed Cash Fund must have at least 25% of its investment portfolio
invested in bankers' acceptances, certificates of deposits, commercial paper,
fixed time deposits or other obligations of domestic and foreign banks.
3. REPURCHASE AGREEMENTS
It is the Company's policy to obtain possession, through its custodian,
of the securities underlying each repurchase agreement to which it is a party,
either through physical delivery or book entry transfer in the Federal Reserve
System or Participants Trust Company. Payment by the Company in respect of
a repurchase agreement is authorized only when proper delivery of the underlying
securities is made to the Company's custodian. The Company's investment manager
values such underlying securities each business day using quotations obtained
from a reputable, independent source. If the Company's investment manager
determines that the value of such underlying securities (including accrued
interest thereon) does not at least equal the value of each repurchase agreement
(including accrued interest thereon) to which such securities are subject, it
will ask for additional securities to be delivered to the Company's custodian.
In connection with each repurchase agreement transaction, if the seller defaults
and the value of the collateral declines or if the seller enters an insolvency
proceeding, realization of the collateral by the Company may be delayed or
limited.
4. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Company retains Scudder, Stevens & Clark, Inc. ("Scudder") as
investment manager for the Funds, pursuant to investment advisory agreements
between Scudder and the Company on behalf of each such Fund, for a management
fee payable each month, based upon the average daily value of each Fund's net
assets, at annual rates of 0.40% on the first $1.5 billion and 0.35% on any
amount in excess thereof. Scudder has agreed not to impose a portion of its
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
management fee, to the extent necessary so that expenses of each of the Managed
Government Securities Fund, Managed Federal Securities Fund, and the Managed
Cash Fund do not exceed 0.55%, 0.75%, and 0.55%, respectively, of the average
daily net assets of each Fund.
For the six months ended June 30, 1995, Scudder did not impose fees
amounting to $111,675, $23,518 and $275,081 on the Managed Government Securities
Fund, the Managed Federal Securities Fund and the Managed Cash Fund,
respectively.
Under certain state regulations, if the total expenses of any of the
Funds, exclusive of taxes, interest, and extraordinary expenses exceed certain
limitations, the Company's investment adviser is required to reimburse the
Fund for such excess up to the amount of management fees. During the six months
ended June 30, 1995, no such reimbursement was required.
Scudder Service Corporation ("SSC"), a wholly-owned subsidiary of
Scudder, is the Company's shareholder service, transfer and dividend disbursing
agent. For the six months ended June 30, 1995, the amount charged to the Company
by SSC aggregated $10,654 for the Managed Government Securities Fund, $1,192 for
the Managed Federal Securities Fund, $53,416 for the Managed Cash Fund, and
$14,522 for the Managed Tax-Free Fund, of which $1,776, $584, $8,924, and $2,477
respectively, remain unpaid at June 30, 1995.
Scudder Fund Accounting Corporation ("SFAC"), a wholly-owned subsidiary
of Scudder, is responsible for determining the daily net asset value per share
and maintaining the portfolio and general accounting records for the Funds.
For the six months ended June 30, 1995, the amount charged to the Funds by
SFAC aggregated $15,000 for the Managed Government Securities Fund, $1,336
for the Managed Federal Securities Fund, $24,863 for the Managed Cash Fund,
and $18,669 for the Managed Tax-Free Fund, of which $2,500, $603, $4,137, and
$2,995, respectively, remain unpaid at June 30, 1995. For the six months ended
June 30, 1995 for the Managed Federal Securities Fund, SFAC did not impose
fees amounting to $13,664.
The Company has a compensation arrangement under which payment of
directors' fees may be deferred. Interest is accrued (based on the rate of
return earned on the 90 day Treasury Bill as determined at the beginning of each
calendar quarter) on the deferred balances and is included in "Directors' fees
and expenses." The accumulated balance of deferred directors' fees and interest
thereon relating to the Funds constituting the Company aggregated $428,588, an
applicable portion of which is included in accrued expenses of each such Fund.
5. SHAREHOLDER SERVICES
Each of the Funds has special arrangements with certain banks,
institutions and other persons under which they receive compensation from the
Funds and Scudder for performing shareholder servicing functions for their
customers who own shares in the Funds from time to time. For the six months
ended June 30, 1995, payments by the Funds pursuant to these arrangements
aggregated $65,398 for the Managed Government Securities Fund, $12,924 for the
Managed Federal Securities Fund, $282,668 for the Managed Cash Fund and $133,081
for the Managed Tax-Free Fund.
6. SHAREHOLDER SERVICE, ADMINISTRATION AND DISTRIBUTION PLAN
The Company has a Shareholder Service, Administration and Distribution
Plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940
under which participating organizations which enter into agreements with the
Company and Scudder may receive a fee of up to 0.25% on an annual basis from
each of the Company and Scudder. Such fee is calculated on the average daily
net assets of the Company for which such participating organizations are
responsible. No payments have been made by the Company for shareholder service,
administration and distribution assistance under this plan other than as
indicated in Note 5 above.
20
<PAGE>
7. CAPITAL STOCK
At June 30, 1995, the Company had 10,000,000,000 shares of $.001 par
value Capital Stock authorized, of which 3,000,000,000 shares each have been
designated for the Managed Government Securities Fund and Managed Cash Fund
and 1,000,000,000 shares each have been designated for the Managed Federal
Securities Fund and Managed Tax-Free Fund. Net paid in capital in excess of
par value was $65,504,114, for the Managed Government Securities Fund,
$11,248,694 for the Managed Federal Securities Fund, $390,974,214 for the
Managed Cash Fund and $126,693,742 for the Managed Tax-Free Fund. At June 30,
1995, one holder of record of the Managed Federal Securities Fund held
approximately 58% of the outstanding shares.
21
Shareholder Meeting Results
An Annual Meeting of Shareholders of Scudder Fund, Inc. (the "Company"),
consisting of Managed Government Securities Fund, Managed Federal Securities
Fund, Managed Cash Fund, Managed Tax-Free Fund and Managed Intermediate
Government Fund, was held on Friday, February 3, 1995, at the offices of
Scudder, Stevens & Clark, Inc., New York, New York. The two matters voted upon
by Shareholders and the resulting votes for each matter are presented below.
1. The election of five Directors to hold office until their respective
successors shall have been duly elected and qualified.
<TABLE>
Director: Number of Votes:
<S> <C> <C> <C> <C> <C>
Broker
For Against Withheld Abstain Non-Votes*
--- ------- --------- ------- ----------
David S. Lee 241,650,469.435 0 1,931.183 0 0
Edgar R. Fiedler 241,650,469.435 0 1,931.183 0 0
Peter B. Freeman 241,650,469.435 0 1,931.183 0 0
Robert W. Lear 241,650,469.435 0 1,931.183 0 0
Daniel Pierce 241,650,469.435 0 1,931.183 0 0
</TABLE>
2. Ratification or rejection of the action taken by the Board of Directors in
selecting Price Waterhouse LLP as independent accountants for the fiscal
year ending December 31, 1995.
<TABLE>
Number of Votes:
<S> <C> <C> <C>
Broker
For Against Abstain Non-Votes*
--- ------- ------- ----------
241,583,509.939 1,154.099 67,736.580 0
</TABLE>
- -----------------------------
* Broker non-votes are proxies received by the Company from brokers or
nominees when the broker or nominee neither has received instructions from
the beneficial owner or other persons entitled to vote nor has
discretionary power to vote on a particular matter.
22
<PAGE>
(This page intentionally left blank.)
23
<PAGE>
Managed Government Securities Fund
Managed Federal Securities Fund
Managed Cash Fund
Managed Tax-Free Fund
345 Park Avenue, New York, New York 10154
(800) 854-8525
Investment Manager Managed Government
Scudder, Stevens & Clark, Inc. Securities Fund
345 Park Avenue
New York, New York 10154 Managed Federal
Securities Fund
Distributor
Scudder Investor Services, Inc. Managed Cash Fund
Two International Place
Boston, Massachusetts 02110 Managed Tax-Free Fund
Custodian
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
Fund Accounting Agent
Scudder Fund Accounting Corporation
Two International Place
Boston, Massachusetts 02110
Transfer Agent and
Dividend Disbursing Agent
Scudder Service Corporation
P.O. Box 9242
Boston, Massachusetts 02205
Legal Counsel
Sullivan & Cromwell
New York, New York
- ---------------------------------------------
The Funds are neither insured nor guaranteed
by the U.S. Government. Each Fund intends to
maintain a net asset value per share of $1.00
but there is no assurance that it will be Mid-Year Report
able to do so. June 30, 1995
This report is for the information of the
shareholders. Its use in connection with any
offering of the Company's shares is
authorized only in case of a concurrent or
prior delivery of the Company's current
prospectus.
