Institutional Government Portfolio
Institutional Federal Portfolio
Institutional Cash Portfolio
Institutional Tax-Free Portfolio
- --------------------------------------------------------------------------------
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 Fund provided competitive investment results to its shareholders in the
first half of 1995. The Fund, operated exclusively for institutions and their
clients, includes four money market portfolios: Institutional Government
Portfolio, Institutional Federal Portfolio, Institutional Cash Portfolio and
Institutional Tax-Free Portfolio.
Each Portfolio seeks to provide as high a level of current income as is
consistent with preservation of capital and liquidity. The Institutional Federal
Portfolio seeks to maximize income that cannot be subjected to state and local
income taxes by reason of Federal law, and the Institutional Tax-Free Portfolio
seeks to provide income exempt from Federal income tax. The Portfolios differ
from each other in the types of money market instruments in which each invests.
Aggregate net assets of the Portfolios were $443 million at June 30, 1995,
compared to $568 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 Portfolio is on page 16.
Net asset value per share of each Portfolio was maintained at $1.00.
Unaudited financial statements for the six months ended June 30, 1995 and a
list of each Portfolio's investments as of that date are set forth on the
following pages.
If you have questions concerning your Fund or any of its Portfolios, 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>
SCUDDER INSTITUTIONAL FUND, INC.
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1995
<TABLE>
GOVERNMENT PORTFOLIO
<CAPTION>
ANNUALIZED MATURITY PRINCIPAL VALUE
YIELD DATE AMOUNT (NOTE 2A)
---------- -------- --------- -----------
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS -- 10.7%
Bear, Stearns & Co., Inc. dated 6/26/95 (proceeds at maturity
$6,007,058) collateralized by $6,100,000 Federal
National Mortgage Association, 8%, 12/1/09
(cost $6,000,000) (note 3)................................... 6.05% 7/3/95 $ 6,000,000 $ 6,000,000
-----------
U.S. AGENCY OBLIGATIONS -- 90.1%
Federal Home Loan Bank Discount Note............................ 5.91 7/6/95 6,000,000 5,995,075
Federal Home Loan Bank Discount Note............................ 5.90 7/7/95 4,000,000 3,996,067
Federal Home Loan Bank Discount Note............................ 5.91 7/12/95 2,000,000 1,996,388
Federal Home Loan Bank Discount Note............................ 5.84 7/25/95 3,000,000 2,988,320
Federal Home Loan Mortgage Corp. Discount Note.................. 5.89 7/5/95 7,000,000 6,995,420
Federal National Mortgage Assn. Discount Note................... 6.02 8/31/95 4,000,000 3,959,198
Student Loan Marketing Assn. Variable Rate Note................. 5.68 7/4/95* 11,700,000 11,700,000
Student Loan Marketing Assn. Variable Rate Note................. 5.86 7/4/95* 8,000,000 8,032,030
Student Loan Marketing Assn. Variable Rate Note................. 6.08 7/1/96 5,000,000 5,000,000
-----------
TOTAL U.S. AGENCY OBLIGATIONS (cost $50,662,498)................................................... 50,662,498
-----------
TOTAL INVESTMENTS -- 100.8% (cost $56,662,498)**................................................... 56,662,498
-----------
OTHER ASSETS AND LIABILITIES -- (0.8%)
Interest receivable and other assets............................................................... 356,202
Due to custodian bank.............................................................................. (365,146)
Dividend payable................................................................................... (264,276)
Management fee payable (note 4).................................................................... (7,074)
Accrued expenses (note 4).......................................................................... (147,811)
-----------
(428,105)
-----------
NET ASSETS -- 100.0%
Applicable to 56,234,393 shares of $.001 par value Capital Stock outstanding;
5,000,000,000 shares authorized (note 5)........................................................ $56,234,393
===========
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.
4
<PAGE>
SCUDDER INSTITUTIONAL FUND, INC.
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1995
<TABLE>
FEDERAL PORTFOLIO
<CAPTION>
ANNUALIZED MATURITY PRINCIPAL VALUE
YIELD DATE AMOUNT (NOTE 2A)
---------- -------- --------- -----------
<S> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 100.9%
U.S. Treasury Bill.......................................... 5.63% 7/6/95 $ 965,000 $ 964,245
U.S. Treasury Bill.......................................... 5.63 7/13/95 1,801,000 1,797,619
U.S. Treasury Bill.......................................... 5.57 7/27/95 3,002,000 2,989,924
U.S. Treasury Bill.......................................... 5.46 8/3/95 560,000 557,197
U.S. Treasury Bill.......................................... 5.46 8/17/95 5,070,000 5,033,864
U.S. Treasury Bill.......................................... 5.35 8/31/95 3,530,000 3,497,990
-----------
TOTAL U.S. TREASURY OBLIGATIONS (cost $14,840,839)**.............................................. 14,840,839
-----------
OTHER ASSETS AND LIABILITIES -- (0.9%)
Cash.............................................................................................. 13,115
Other assets...................................................................................... 5,193
Dividend payable.................................................................................. (57,478)
Management fee payable (note 4)................................................................... (8,589)
Accrued expenses (note 4)......................................................................... (78,516)
-----------
(126,275)
-----------
NET ASSETS -- 100.0%
Applicable to 14,714,564 shares of $.001 par value Capital Stock outstanding;
5,000,000,000 shares authorized (note 5)....................................................... $14,714,564
===========
NET ASSET VALUE PER SHARE......................................................................... $1.00
=====
<FN>
** Cost for federal income tax purposes.
</FN>
</TABLE>
See notes to financial statements.
5
<PAGE>
SCUDDER INSTITUTIONAL FUND, INC.
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1995
<TABLE>
CASH PORTFOLIO
<CAPTION>
ANNUALIZED MATURITY PRINCIPAL VALUE
YIELD DATE AMOUNT (NOTE 2a)
---------- --------- ---------- ------------
<S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSIT -- 23.4%
ABN-AMRO North American Finance Inc. ..................... 6.24% 7/6/95 $6,000,000 $ 6,000,001
Bank of Nova Scotia (Yankee).............................. 6.09 7/10/95 7,000,000 7,000,009
Banque National de Paris (Yankee)......................... 6.27 8/17/95 7,000,000 7,000,420
Commerzbank A.G. (Yankee)................................. 6.49 9/11/95 7,000,000 7,006,699
Credit Suisse Zurich (Yankee)............................. 5.83 10/4/95 7,000,000 7,000,544
Fifth Third Bancorp....................................... 6.16 11/10/95 7,000,000 7,000,249
National Bank of Detroit.................................. 6.29 10/16/95 7,000,000 6,999,271
National Westminster Bank PLC............................. 6.31 10/24/95 7,000,000 7,000,341
Rabobank Nederland N.V. (Yankee).......................... 6.46 9/14/95 7,000,000 7,004,714
Societe Generale (Yankee)................................. 5.98 9/12/95 7,000,000 7,000,000
------------
TOTAL CERTIFICATES OF DEPOSIT (cost $69,012,248).................................................. 69,012,248
------------
COMMERCIAL PAPER -- 47.1%
Abbey National North America.............................. 6.00 7/31/95 7,000,000 6,965,000
American Express Credit Corp. ............................ 5.85 11/8/95 7,000,000 6,852,125
American General Finance Corp. ........................... 5.92 8/29/95 7,000,000 6,932,084
Ameritech Capital Funding Corp. .......................... 6.02 8/7/95 7,000,000 6,956,689
Associates Corp. of North America......................... 5.95 7/19/95 7,000,000 6,979,175
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
Ciesco L.P. ............................................. 5.95 7/28/95 7,000,000 6,968,763
CoreStates Capital Corp. ................................. 5.90 10/10/95 7,000,000 6,884,130
Corporate Asset Funding Corp. ............................ 5.95 7/13/95 7,000,000 6,986,117
Credit Agricole U.S.A. .................................. 5.81 8/9/95 7,000,000 6,955,941
Deutsche Bank Financial Inc. ............................. 5.85 7/6/95 7,000,000 6,994,312
Dresdner U.S. Finance Inc. ............................... 6.00 7/5/95 7,000,000 6,995,333
Ford Credit Receivables Funding Inc. ..................... 5.93 8/30/95 7,000,000 6,930,817
Nestle Capital Corp. ..................................... 5.88 11/6/95 7,000,000 6,853,653
New Center Asset Trust.................................... 5.97 10/2/95 7,000,000 6,892,043
Pitney Bowes Credit Corp. ................................ 5.80 9/25/95 7,000,000 6,903,011
Prudential Funding Corp. ................................. 5.96 7/12/95 7,000,000 6,987,252
Rincon Securities Inc. (LOC Trust Co. of Georgia)......... 5.97 8/18/95 7,000,000 6,944,280
Wal-Mart Stores Inc. ..................................... 5.95 7/7/95 7,000,000 6,993,058
------------
TOTAL COMMERCIAL PAPER (cost $138,730,280)........................................................ 138,730,280
------------
</TABLE>
See notes to financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
ANNUALIZED MATURITY PRINCIPAL VALUE
YIELD DATE AMOUNT (NOTE 2A)
---------- -------- ----------- ------------
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS -- 10.2%
Donaldson, Lufkin & Jenrette Securities Corp.
dated 6/30/95 (proceeds at maturity $30,154,245)
collateralized by $28,871,000 U.S. Treasury
Note, 6.875%, 8/31/99 (cost $30,139,000) (note 3)........ 6.07% 7/3/95 $30,139,000 $ 30,139,000
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 18.3%
Federal Farm Credit Bank Discount Note...................... 5.85 8/2/95 10,000,000 9,948,000
Federal Home Loan Mortgage Corp. Discount Note.............. 5.67 10/2/95 5,000,000 4,926,763
Federal National Mortgage Assn. Variable Rate Note.......... 5.96 9/14/95* 15,000,000 15,000,000
Student Loan Marketing Assn. Variable Rate Note............. 5.68 7/4/95* 14,000,000 14,000,000
Student Loan Marketing Assn. Variable Rate Note............. 5.86 7/4/95* 10,000,000 10,040,037
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (cost $53,914,800)................................................ 53,914,800
------------
VARIABLE COUPON RENEWABLE NOTES -- 1.1%
Adesa Funding Corp. (LOC Banc One) (cost $3,192,000)........ 6.07 7/6/95* 3,192,000 3,192,000
------------
TOTAL INVESTMENTS -- 100.1% (cost $294,988,328)**.......................................................... 294,988,328
------------
OTHER ASSETS AND LIABILITIES -- (0.1%)
Cash....................................................................................................... 134,271
Interest receivable and other assets....................................................................... 1,127,547
Dividend payable........................................................................................... (1,504,715)
Management fee payable (note 4)............................................................................ (39,628)
Accrued expenses (note 4).................................................................................. (182,889)
------------
(465,414)
------------
NET ASSETS -- 100.0%
Applicable to 294,522,914 shares of $.001 par value Capital Stock outstanding;
5,000,000,000 shares authorized (note 5)............................................................... $294,522,914
============
NET ASSET VALUE PER SHARE.................................................................................. $1.00
=====
<FN>
* Date of next interest rate change.
** Cost for federal income tax purposes.
ABBREVIATIONS USED IN THE STATEMENT:
LOC Letter of Credit
</FN>
</TABLE>
See notes to financial statements.
7
<PAGE>
SCUDDER INSTITUTIONAL FUND, INC.
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1995
<TABLE>
TAX-FREE PORTFOLIO
<CAPTION>
CREDIT PRINCIPAL VALUE
RATING* SHORT-TERM MUNICIPAL SECURITIES -- 103.7% AMOUNT (NOTE 2a)
- ------- ---------- ----------
<S> <C> <C> <C>
ALASKA -- 3.9%
A-1+ Alaska Housing Finance Corp. General Mortgage Revenue Series 1991-A
VRDN, 4.55%, 6/1/26.................................................... $3,000,000 $3,000,000
----------
ARIZONA -- 4.6%
A-1+ Apache County Industrial Development Revenue Tuscan Electric Co.
Springerville Project Series 1985-A VRDN, 3.8%, 12/1/20................ 500,000 500,000
VMIG-1 Pima County Industrial Development Authority Tucson Electric Power Co.
Series 1982-A VRDN, 3.85%, 7/1/22...................................... 100,000 100,000
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..................................................... 3,600,000
----------
ARKANSAS -- 0.1%
VMIG-1 Jonesboro Industrial Revenue Bond Farr Co. Project VRDN, 4.25%, 12/1/01... 70,000 70,000
----------
CALIFORNIA -- 11.6%
A-1 Lancaster Willows Project Green Meadows Apartments Series 1995-A
VRDN, 4.625%, 2/1/05................................................... 1,000,000 1,000,000
MIG-1 Los Angeles County TRAN, 4.5%, 7/1/96..................................... 1,500,000 1,510,050
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
A-1+ Orange County Water District TECP, 4.35%, 7/24/95......................... 2,000,000 2,000,000
A-1+ Orange County Water District TECP, 4.2%, 8/21/95.......................... 1,000,000 1,000,000
A-1 Riverside Multi-Family Housing Revenue Countrywood Apartments Series
1985-D VRDN, 4.625%, 5/1/05............................................ 1,500,000 1,500,000
----------
TOTAL CALIFORNIA.................................................. 9,016,484
----------
COLORADO -- 0.6%
A-1+ Clear Creek County Colorado Counties Financing Program Series 1988
VRDN, 4.25%, 6/1/98.................................................... 475,000 475,000
----------
DISTRICT OF COLUMBIA -- 4.4%
A-1+ District of Columbia General Obligation Refunding Bonds Series A-3
VRDN, 4.4%, 10/1/07.................................................... 400,000 400,000
SP-1 District of Columbia TRAN, 6.25%, 9/30/95................................. 3,000,000 3,009,743
----------
TOTAL DISTRICT OF COLUMBIA........................................ 3,409,743
----------
FLORIDA -- 1.5%
A-1+ Dade County Water and Sewer System Revenue Bond Series 1994
VRDN, FGIC Insured, 4.2%, 10/5/22...................................... 1,200,000 1,200,000
----------
</TABLE>
See notes to financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
CREDIT PRINCIPAL VALUE
RATING* AMOUNT (NOTE 2a)
- ------- ---------- ----------
<S> <C> <C> <C>
GEORGIA -- 8.0%
A-1+ DeKalb Private Hospital Authority Egleston Children's Hospital at Emory
University Series 1994-B VRDN, 4.05%, 3/1/24................................ $1,400,000 $1,400,000
SS&C Savannah Downtown Development Authority VRDN, 4.5%, 5/1/15..................... 4,800,000 4,800,000
----------
TOTAL GEORGIA.......................................................... 6,200,000
----------
ILLINOIS -- 1.4%
A-1+ Illinois Health Facilities Authority Rush-Presbyterian/St. Luke's Medical
Center TECP, 4.1%, 7/20/95.................................................. 1,100,000 1,100,000
----------
IOWA -- 1.9%
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
----------
LOUISIANA -- 2.6%
A-1+ Louisiana Public Facilities Authority Sisters of Charity Series 1985 TECP,
4.15%, 8/15/95.............................................................. 2,000,000 2,000,000
----------
MASSACHUSETTS -- 4.5%
SP-1 Commonwealth of Massachusetts Bay Transportation Authority Note
Series 1994-A OP, 5%, 9/8/95................................................ 2,500,000 2,503,993
SS&C Commonwealth of Massachusetts General Obligation Consolidated Loan
Series 1994-C, 5.5%, 11/1/95................................................ 1,000,000 1,002,588
----------
TOTAL MASSACHUSETTS.................................................... 3,506,581
----------
MICHIGAN -- 2.4%
VMIG-1 University of Michigan Hospital Revenue Series A VRDN, 4.2%, 12/1/19........... 1,900,000 1,900,000
----------
MISSISSIPPI -- 0.6%
P-1 Jackson County Chrevron USA Project VRDN, 4.2%, 6/1/23......................... 500,000 500,000
----------
MISSOURI -- 3.0%
A-1+ Missouri Health and Education Facilities Authority Washington University
Series 1989-B VRDN, 4.6%, 3/1/17............................................ 300,000 300,000
A-1+ Missouri State Environmental Improvement and Energy Resource Authority
Union Electric Company Series 1984-A OP, 4%, 6/1/96......................... 2,000,000 2,000,000
----------
TOTAL MISSOURI......................................................... 2,300,000
----------
NEVADA -- 3.9%
A-1+ Clark County Airport System McCarran International Airport Series A
VRDN MBIA Insured, 4.2%, 7/1/12............................................. 3,000,000 3,000,000
----------
NEW MEXICO -- 1.3%
A-1+ Albuquerque Gross Receipts/Lodgers Tax Series 1991-A VRDN, 4.15%,
7/1/22...................................................................... 1,000,000 1,000,000
----------
</TABLE>
See notes to financial statements.
9
<PAGE>
SCUDDER INSTITUTIONAL FUND, INC.
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1995
<TABLE>
TAX-FREE PORTFOLIO (CONTINUED)
<CAPTION>
CREDIT PRINCIPAL VALUE
RATING* AMOUNT (NOTE 2a)
- ------- ---------- ----------
<S> <C> <C> <C>
OREGON -- 5.1%
A-1 Oregon General Obligation Series 1973-G VRDN, 4.15%, 12/1/18.................... $1,900,000 $1,900,000
VMIG-1 Oregon General Obligation Veterans Welfare Series 1973-E VRDN,
4.25%, 12/1/16............................................................... 2,100,000 2,100,000
----------
TOTAL OREGON............................................................ 4,000,000
----------
PENNSYLVANIA -- 6.4%
SS&C Elk County Pennsylvania Industrial Development Authority Stackpole
Corporation Series 1989 VRDN, 4.48%, 3/1/04.................................. 1,000,000 1,000,000
A-1+ Emmaus General Authority Local Government Revenue Bond
Pool Program Series 1989-G VRDN, 4.2%, 3/1/24................................ 4,000,000 4,000,000
----------
TOTAL PENNSYLVANIA...................................................... 5,000,000
----------
TENNESSEE -- 5.1%
VMIG-1 Franklin Industrial Development Revenue Franklin Oaks Apartments
VRDN, 4%, 12/1/07............................................................ 4,000,000 4,000,000
----------
TEXAS -- 8.2%
VMIG-1 Angelina & Neches River Authority of Texas Solid Waste Disposal Series
1984-D VRDN, 4.65%, 5/1/14................................................... 1,300,000 1,300,000
A-1 North Central Health Development Corp. Methodist Hospital of Dallas
VRDN MBIA Insured, 4.5%, 10/1/15............................................. 1,000,000 1,000,000
MIG-1 North Central Texas Health Facilities Authority Methodist Hospitals Series
1991-A TECP MBIA Insured, 4.15%, 8/17/95..................................... 1,100,000 1,100,000
SP-1+ State of Texas Series 1994 TRAN, 5%, 8/31/95.................................... 3,000,000 3,001,538
----------
TOTAL TEXAS............................................................. 6,401,538
----------
UTAH -- 4.7%
AAA Intermountain Power Agency Series 1985-I, 8.6%, 7/1/98.......................... 1,135,000 1,152,025
VMIG-1 Utah Housing Finance Agency Single-Family Mortgage Series 1993-C
VRDN, 4.2%, 1/1/27........................................................... 2,500,000 2,500,000
----------
TOTAL UTAH.............................................................. 3,652,025
----------
VERMONT -- 4.8%
SS&C Vermont Industrial Development Authority Mount Snow Project
VRDN, 4.48%, 4/1/99.......................................................... 810,000 810,000
VMIG-1 Vermont Student Assistance Corporation VRDN, 4%, 1/1/04......................... 2,900,000 2,900,000
----------
TOTAL VERMONT........................................................... 3,710,000
----------
VIRGINIA -- 1.3%
A-1 Louisa Industrial Development Authority Virginia Electric Power Co. Series
1984 TECP, 3.15%, 8/7/95..................................................... 1,000,000 1,000,000
----------
</TABLE>
See notes to financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
CREDIT PRINCIPAL VALUE
RATING* AMOUNT (NOTE 2a)
- ------- ---------- -----------
<S> <C> <C> <C>
WASHINGTON -- 3.1%
A-1 Washington Public Power Supply System Nuclear Project #1 Series
1993-1A-1 VRDN, 4.2%, 7/1/17........................................... $2,400,000 $ 2,400,000
-----------
WISCONSIN -- 0.6%
AAA Wausau Pollution Control Revenue Minnesota Mining and Manufacturing
Series 1982 VRDN, 4.59%, 8/1/17........................................ 500,000 500,000
-----------
WYOMING -- 8.1%
VMIG-1 Sweetwater County Pollution Control Revenue Pacific Corp. Project Series
1994 VRDN Insured, 4.5%, 11/1/24....................................... 1,100,000 1,100,000
A-1+ Sweetwater County Pollution Control Revenue Pacific Corp. Project Series
1984 VRDN, 4.6%, 12/1/14............................................... 5,200,000 5,200,000
-----------
TOTAL WYOMING..................................................... 6,300,000
-----------
TOTAL INVESTMENT PORTFOLIO -- 103.7% (Cost $80,754,255)**................. 80,754,255
-----------
OTHER ASSETS AND LIABILITIES -- (3.7%)
Interest receivable and other assets.............................................................. 807,057
Receivable for Investments sold................................................................... 100,000
Due to custodian bank............................................................................. (903,727)
Payable for Investments purchased................................................................. (2,516,270)
Dividend payable.................................................................................. (263,935)
Management fee payable (note 4)................................................................... (10,855)
Accrued expenses (note 4)......................................................................... (76,454)
-----------
(2,864,184)
-----------
NET ASSETS -- 100.0%
Applicable to 77,890,071 shares of $.001 par value Capital Stock outstanding;
2,000,000,000 shares authorized (note 5)....................................................... $77,890,071
===========
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:
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>
See notes to financial statements.
11
<PAGE>
SCUDDER INSTITUTIONAL FUND, INC.
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1995
TAX-FREE PORTFOLIO (CONTINUED)
<TABLE>
ABBREVIATIONS USED IN THE STATEMENT:
<S> <C> <C> <C>
TECP Tax Exempt Commercial Paper VRDN Variable Rate Demand Note
MP, OP Security with a "mandatory or optional put" SS&C These securities are not rated by either Moody's or
feature; date shown represents the earliest Standard & Poor's. Scudder has determined that these
date the security may be redeemed or the securities are of comparable quality to rated acceptable
interest rate will be reset if the security notes on a cash flow basis and are of appropriate credit
is not redeemed for the standards required by the Fund's
investment objective.
TOB Tender Option Bond is a security with a TRAN Tax Revenue Anticipation Note
periodic "put feature"
</TABLE>
See notes to financial statements.
12
<PAGE>
<TABLE>
SCUDDER INSTITUTIONAL FUND, INC.
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1995
<CAPTION>
GOVERNMENT FEDERAL CASH TAX-FREE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- --------- ----------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest Income............................... $2,036,349 $319,623 $10,502,993 $2,081,070
---------- -------- ----------- ----------
EXPENSES (note 2c):
Management fee (note 4)....................... 51,411 8,589 258,480 78,037
Shareholder services (note 4)................. 6,105 1,033 18,806 8,207
Directors' fees and expenses (note 4)......... 8,326 6,517 12,635 9,093
Custodian and Accounting fees (note 4)........ 37,436 8,410 47,237 46,310
Professional services......................... 29,981 6,810 84,805 33,161
Reports to shareholders....................... 1,881 270 10,173 4,289
Registration fees............................. 2,804 2,356 2,817 6,219
Miscellaneous................................. 13,861 6,506 18,232 6,086
---------- -------- ----------- ----------
Net expenses............................... 151,805 40,491 453,185 191,402
---------- -------- ----------- ----------
NET INVESTMENT INCOME AND INCREASE IN NET
ASSETS FROM OPERATIONS..................... $1,884,544 $279,132 $10,049,808 $1,889,668
========== ======== =========== ==========
</TABLE>
See notes to financial statements.
13
<PAGE>
<TABLE>
SCUDDER INSTITUTIONAL FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
<CAPTION>
GOVERNMENT PORTFOLIO
-------------------------------
SIX MONTHS YEAR
ENDED ENDED
6/30/95 12/31/94
-------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income and increase in net assets
from operations............................................... $ 1,884,544 $ 7,073,834
Dividends (notes 2b and 2d)...................................... (1,884,544) (7,073,834)
------------- -------------
-- --
------------- -------------
CAPITAL STOCK TRANSACTIONS (note 5):
Proceeds from sale of shares..................................... 235,556,875 803,305,494
Net asset value of shares issued in reinvestment of dividends.... 533,100 1,137,637
------------- -------------
236,089,975 804,443,131
Cost of shares redeemed.......................................... (297,719,702) (882,511,092)
------------- -------------
Increase (decrease) in net assets from Capital Stock
transactions.................................................. (61,629,727) (78,067,961)
------------- -------------
Total increase (decrease) in net assets............................. (61,629,727) (78,067,961)
NET ASSETS:
Beginning of period.............................................. 117,864,120 195,932,081
------------- -------------
End of period.................................................... $ 56,234,393 $ 117,864,120
============= =============
</TABLE>
See notes to financial statements.
14
<PAGE>
<TABLE>
<CAPTION>
FEDERAL PORTFOLIO CASH PORTFOLIO TAX-FREE PORTFOLIO
---------------------------- ------------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
6/30/95 12/31/94 6/30/95 12/31/94 6/30/95 12/31/94
------------ ------------ ------------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
$ 279,132 $ 362,379 $ 10,049,808 $ 15,242,973 $ 1,889,688 $ 3,879,840
(279,132) (362,379) (10,049,808) (15,242,973) (1,889,668) (3,879,840)
------------ ------------ ------------- --------------- ------------- -------------
-- -- -- -- -- --
------------ ------------ ------------- --------------- ------------- -------------
29,995,684 49,187,822 550,402,229 1,756,715,344 327,345,424 908,058,572
256,019 344,539 3,613,215 2,606,116 626,888 1,407,961
------------ ------------ ------------- --------------- ------------- -------------
30,251,703 49,532,361 554,015,444 1,759,321,460 327,972,312 909,466,533
(26,592,108) (46,094,573) (530,497,330) (1,956,022,378) (417,939,637) (866,656,883)
------------ ------------ ------------- --------------- ------------- -------------
3,659,595 3,437,788 23,518,114 (196,700,918) (89,967,325) 42,809,650
------------ ------------ ------------- --------------- ------------- -------------
3,659,595 3,437,788 23,518,114 (196,700,918) (89,967,325) 42,809,650
11,054,969 7,617,181 271,004,800 467,705,718 167,857,396 125,047,746
------------ ------------ ------------- --------------- ------------- -------------
$ 14,714,564 $ 11,054,969 $ 294,522,914 $ 271,004,800 $ 77,890,071 $ 167,857,396
============ ============ ============= =============== ============= =============
</TABLE>
See notes to financial statements.
15
<PAGE>
<TABLE>
SCUDDER INSTITUTIONAL FUND, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
THE FOLLOWING TABLE INCLUDES SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR AND OTHER
PERFORMANCE INFORMATION DERIVED FROM THE FINANCIAL STATEMENTS.
<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 NET ASSETS (MILLIONS)
- ---------------------------------- --------- ---------- --------- --------- ------ ---------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
GOVERNMENT PORTFOLIO
Six months ended 6/30/95....... $1.00 $.027 $(.027) $1.00 2.76%** 0.44%* 5.50%* $ 56
Year ended 12/31/94............ 1.00 .040 (.040) 1.00 4.09 0.28 3.89 118
Year ended 12/31/93............ 1.00 .030 (.030) 1.00 3.01 0.26 2.97 196
Year ended 12/31/92............ 1.00 .037 (.037) 1.00 3.74 0.24 3.69 247
Year ended 12/31/91............ 1.00 .057 (.057) 1.00 5.94 0.26 5.86 192
Year ended 12/31/90............ 1.00 .079 (.079) 1.00 8.19 0.31 7.89 174
FEDERAL PORTFOLIO (A) (B) (C)
Six months ended 6/30/95....... 1.00 .024 (.024) 1.00 2.44** 0.71* 4.87* 15
Year ended 12/31/94............ 1.00 .034 (.034) 1.00 3.42 0.54 3.39 11
Year ended 12/31/93............ 1.00 .027 (.027) 1.00 2.74 0.23 2.73 8
Year ended 12/31/92............ 1.00 .032 (.032) 1.00 3.23 0.32 3.13 9
Year ended 12/31/91............ 1.00 .054 (.054) 1.00 5.55 0.30 5.51 11
Year ended 12/31/90............ 1.00 .078 (.078) 1.00 8.04 0.33 7.79 25
CASH PORTFOLIO
Six months ended 6/30/95....... 1.00 .029 (.029) 1.00 2.93** 0.26* 5.83* 295
Year ended 12/31/94............ 1.00 .041 (.041) 1.00 4.13 0.24 3.94 271
Year ended 12/31/93............ 1.00 .031 (.031) 1.00 3.16 0.22 3.12 468
Year ended 12/31/92............ 1.00 .038 (.038) 1.00 3.88 0.25 3.66 662
Year ended 12/31/91............ 1.00 .059 (.059) 1.00 6.12 0.25 5.89 308
Year ended 12/31/90............ 1.00 .080 (.080) 1.00 8.27 0.32 8.02 152
TAX-FREE PORTFOLIO
Six months ended 6/30/95....... 1.00 .018 (.018) 1.00 1.83** 0.37* 3.64* 78
Year ended 12/31/94 (a) (c).... 1.00 .027 (.027) 1.00 2.74 0.27 2.73 168
Year ended 12/31/93............ 1.00 .023 (.023) 1.00 2.32 0.29 2.30 125
Year ended 12/31/92............ 1.00 .029 (.029) 1.00 2.92 0.31 2.82 96
Year ended 12/31/91............ 1.00 .045 (.045) 1.00 4.65 0.36 4.55 75
Year ended 12/31/90............ 1.00 .058 (.058) 1.00 5.96 0.32 5.79 88
<FN>
(a) The annualized operating expense ratio including expenses reimbursed, management fee and other expenses not
imposed would have been: 0.94% for the six months ended June 30, 1995, 0.77%, 0.83%, 0.69%, 0.67% and 0.48%
for the years ended December 31, 1994, 1993, 1992, 1991 and 1990, respectively for the Federal Portfolio, and
0.29% for the year ended December 31, 1994 for the Tax-Free Portfolio.
(b) Name changed from Treasury Portfolio effective May 1, 1990.
(c) Total returns are higher, for the periods indicated, due to the maintenance of the Fund's expenses.
* Annualized
** Not annualized
</FN>
</TABLE>
16
<PAGE>
SCUDDER INSTITUTIONAL FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION
Scudder Institutional Fund, Inc. (the "Fund") is an open-end
diversified management investment company which currently has four active money
market investment portfolios: the Government Portfolio, Federal Portfolio, Cash
Portfolio and Tax-Free Portfolio (collectively the "Portfolios").
2. SIGNIFICANT ACCOUNTING POLICIES
Significant accounting policies followed by the Fund are:
(a) Security Valuation-Each of the Portfolios 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 Fund's policy is to qualify each Portfolio
as a regulated investment company under the Internal Revenue Code and to
distribute all of its 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 Portfolio are allocated primarily on the basis of relative net assets.
(d) Dividends-Dividends from net investment income are declared each
business day to shareholders of record that day and paid on the first business
day of the following month.
(e) 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 date.
The Cash Portfolio 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 Fund'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 Fund in respect of a
repurchase agreement is authorized only when proper delivery of the underlying
securities is made to the Fund's custodian. The Fund's investment manager
values such underlying securities each business day using quotations obtained
from a reputable, independent source. If the Fund'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 Fund'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 Fund may
be delayed or limited.
17
<PAGE>
SCUDDER INSTITUTIONAL FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment advisory agreements between Scudder, Stevens & Clark,
Inc. ("Scudder"), the Fund's investment manager, and the Fund on behalf of
each Portfolio provide for a management fee payable each month, based upon
the average daily value of each Portfolio's net assets, at annual rates of
0.15%.
Under certain state regulations, if the total expenses of any of the
Portfolios, exclusive of taxes, interest, and extraordinary expenses exceed
certain limitations, the Fund's investment adviser is required to reimburse
the Portfolio for such excess up to the amount of management fees. Effective
January 20, 1995, the adviser has agreed not to impose all or a portion of
its management fee until December 31, 1995, and during such period to maintain
the annualized expenses of the Federal Portfolio at not more than 0.70% of
average daily net assets. 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 Fund's shareholders service, transfer and dividend disbursing
agent. For the six months ended June 30, 1995, the amount charged to the Fund
by SSC aggregated $5,197 for the Government Portfolio, $836 for the Federal
Portfolio, $17,272 for the Cash Portfolio, and $6,911 for the Tax-Free
Portfolio, of which $791, $126, $2,981, and $1,066 respectively remain unpaid
at June 30, 1995.
Scudder Fund Accounting Corporation ("SFAC"), a wholly-owned subsidiary
of Scudder, is responsibile for determining the daily net asset value per share
and maintaining the portfolio and general accounting records for the
Portfolios. For the six months ended June 30, 1995, the amount charged to the
Portfolios by SFAC aggregated $15,000 for the Government Portfolio, $1,645 for
the Federal Portfolio, $23,718 for the Cash Portfolio, and $16,846 for the
Tax-Free Portfolio, of which $2,500, $285, $3,803, and $2,769, respectively,
remain unpaid at June 30, 1995. For the six months ended June 30, 1995 for the
Federal Portfolio, SFAC did not impose fees amounting to $13,355.
The Fund 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 all active Portfolios comprising the Fund
aggregates $410,329, an applicable portion of which is included in accrued
expenses of each of the Portfolios.
5. CAPITAL STOCK
At June 30, 1995, the Fund had 25,000,000,000 shares of $.001 par value
Capital Stock authorized, of which 5,000,000,000 shares each have been
designated for the Government Portfolio, Federal Portfolio and Cash Portfolio,
and 2,000,000,000 shares have been designated for the Tax-Free Portfolio. Net
paid in capital in excess of par value was $56,178,159 for the Government
Portfolio, $14,699,849 for the Federal Portfolio, $294,228,391 for the Cash
Portfolio and $77,812,181 for the Tax-Free Portfolio. At June 30, 1995, one
holder of record of the Government Portfolio held approximately 51% of the
outstanding shares and one holder of the Tax-Free Portfolio held approximately
51% of the outstanding shares.
18
<PAGE>
Shareholder Meeting Results
An Annual Meeting of Shareholders of Scudder Institutional Fund, Inc. (the
"Company"), consisting of Institutional Government Portfolio, Institutional
Federal Portfolio, Institutional Cash Portfolio and Institutional Tax-Free
Portfolio, 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>
<CAPTION>
Director: Number of Votes:
Broker
For Against Withheld Abstain Non-Votes*
--- ------- -------- ------- ----------
<S> <C> <C> <C> <C> <C>
David S. Lee 285,079,174.830 0 0 0 0
Edgar R. Fiedler 285,079,174.830 0 0 0 0
Peter B. Freeman 285,079,174.830 0 0 0 0
Robert W. Lear 285,079,174.830 0 0 0 0
Daniel Pierce 285,079,174.830 0 0 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.
Number of Votes:
Broker
For Against Abstain Non-Votes*
--- ------- ------- ----------
285,079,174.830 0 0 0
- -----------------------------
* 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.
19
<PAGE>
<TABLE>
<S> <C>
Institutional Government Portfolio
Institutional Federal Portfolio
Institutional Cash Portfolio
Institutional Tax-Free Portfolio
345 Park Avenue, New York, New York 10154
(800) 854-8525
Investment Manager INSTITUTIONAL GOVERNMENT PORTFOLIO
Scudder, Stevens & Clark, Inc.
345 Park Avenue INSTITUTIONAL FEDERAL PORTFOLIO
New York, New York 10154
INSTITUTIONAL CASH PORTFOLIO
Distributor
Scudder Investor Services, Inc. INSTITUTIONAL TAX-FREE PORTFOLIO
Two International Place
Boston, Massachusetts 02110
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 Portfolios are neither insured nor MID-YEAR REPORT
guaranteed by the U.S. Government. Each JUNE 30, 1995
Portfolio intends to maintain a net
asset value per share of $1.00 but there
is no assurance that it will be able to
do so.
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.
</TABLE>
