INSTITUTIONAL GOVERNMENT PORTFOLIO
INSTITUTIONAL FEDERAL PORTFOLIO
INSTITUTIONAL CASH PORTFOLIO
INSTITUTIONAL TAX-FREE PORTFOLIO
ANNUAL REPORT
DECEMBER 31, 1995
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
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
K. SUE COTE Vice President
JERARD K. HARTMAN Vice President
KATHRYN L. QUIRK Vice 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
</TABLE>
2
<PAGE>
Dear Shareholder:
Operated exclusively for institutions and their clients, Scudder
Institutional Fund, Inc., comprised of Institutional Government Portfolio,
Institutional Federal Portfolio, Institutional Cash Portfolio, and Institutional
Tax-Free Portfolio provided competitive investment results in 1995. These four
money market Portfolios seek to provide high levels of current income while
preserving capital and maintaining liquidity.
All four Portfolios seek to maintain a net asset value of $1.00, and have
done so since their inception (although this cannot be guaranteed). The
Institutional Federal Portfolio seeks to maximize income exempt from state and
local income taxes, while the Institutional Tax-Free Portfolio seeks to provide
income exempt from Federal income tax.
Aggregate net assets were $425 million on December 31, 1995, compared to
$568 million at the start of the year. A table showing dividend payments and
other financial information for the twelve months ended December 31, 1995 is on
page 16. This table also shows dividend payments and financial information for
each Portfolio for the five years ended December 31. In addition, please see the
following pages for audited financial statements for the year ended December 31,
1995, as well as a list of each Portfolio's investments.
If you have any questions concerning Scudder Institutional Fund, Inc.,
please call toll free (800) 854-8525 from any continental state.
/S/David S. Lee
David S. Lee
Chairman
3
<PAGE>
<PAGE>
<TABLE>
SCUDDER INSTITUTIONAL FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
<CAPTION>
GOVERNMENT PORTFOLIO
MATURITY PRINCIPAL VALUE
DATE AMOUNT (NOTE 2A)
-------- --------- ---------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - 8.2%
Donaldson, Lufkin, & Jenrette Securities Corp. dated
12/29/95 at 5.85% (proceeds at maturity $6,542,250)
collateralized by $6,351,000 U.S. Treasury Note,
6.75%, 2/28/97 (cost $6,538,000) (note 3) ................... 1/2/96 $ 6,538,000 $ 6,538,000
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 92.0%
Federal Farm Credit Bank Discount Note ........................ 1/3/96 8,000,000 7,997,514
Federal Farm Credit Bank Discount Note ........................ 1/5/96 5,000,000 4,996,900
Federal Farm Credit Bank Discount Note ........................ 2/6/96 4,000,000 3,977,800
Federal Home Loan Bank Discount Note .......................... 1/9/96 2,000,000 1,997,533
Federal Home Loan Bank Discount Note .......................... 3/1/96 4,000,000 3,964,533
Federal Home Loan Mortgage Corp. Discount Note ................ 1/9/96 2,000,000 1,997,516
Federal Home Loan Mortgage Corp. Discount Note ................ 1/9/96 3,434,000 3,429,757
Federal Home Loan Mortgage Corp. Discount Note ................ 1/16/96 2,600,000 2,593,890
Federal Home Loan Mortgage Corp. Discount Note ................ 2/20/96 2,000,000 1,984,500
Federal Home Loan Mortgage Corp. Discount Note ................ 6/17/96 4,000,000 3,902,000
Federal National Mortgage Assn. Discount Note ................. 1/8/96 4,000,000 3,995,590
Federal National Mortgage Assn. Discount Note ................. 1/16/96 3,000,000 2,993,013
Federal National Mortgage Assn. Discount Note ................. 1/18/96 3,000,000 2,992,053
Federal National Mortgage Assn. Discount Note ................. 1/19/96 2,000,000 1,994,520
Student Loan Marketing Assn. Variable Rate Note, 6.08% ........ 7/1/96* 5,000,000 5,000,000
Student Loan Marketing Assn. Variable Rate Note, 5.22% ........ 1/2/96* 11,700,000 11,700,000
Student Loan Marketing Assn. Variable Rate Note, 5.40% ........ 1/2/96* 8,000,000 8,025,279
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $73,542,398) ........................ 73,542,398
-----------
TOTAL INVESTMENTS - 100.2% (COST $80,080,398)** ..................................... 80,080,398
-----------
OTHER ASSETS AND LIABILITIES - (0.2%)
Interest receivable and other assets ................................................ 361,328
Dividend payable .................................................................... (353,701)
Management fee payable (note 4) ..................................................... (9,957)
Accrued expenses (note 4) ........................................................... (159,707)
-----------
(162,037)
-----------
</TABLE>
See notes to financial statements.
4
<PAGE>
<TABLE>
<S> <C>
NET ASSETS - 100.0%
Applicable to 79,918,361 shares of $.001 par value Capital Stock outstanding;
5,000,000,000 shares authorized (note 5) .................................... $79,918,361
===========
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>
<TABLE>
SCUDDER INSTITUTIONAL FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
<CAPTION>
FEDERAL PORTFOLIO
MATURITY PRINCIPAL VALUE
DATE AMOUNT (NOTE 2A)
-------- --------- ---------
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS - 99.2%
U.S. Treasury Bill ........................................ 1/4/96 $ 580,000 $ 579,746
U.S. Treasury Bill ........................................ 1/25/96 890,000 886,826
U.S. Treasury Bill ........................................ 2/8/96 3,000,000 2,983,074
U.S. Treasury Bill ........................................ 2/15/96 850,000 844,294
U.S. Treasury Bill ........................................ 3/7/96 1,200,000 1,188,351
U.S. Treasury Bill ........................................ 3/14/96 550,000 544,039
U.S. Treasury Bill ........................................ 3/28/96 3,900,000 3,854,289
U.S. Treasury Bill ........................................ 4/4/96 2,500,000 2,465,599
U.S. Treasury Bill ........................................ 5/2/96 3,000,000 2,949,777
-----------
TOTAL U.S. TREASURY OBLIGATIONS (COST $16,295,995)** ........................................ 16,295,995
-----------
OTHER ASSETS AND LIABILITIES - 0.8%
Cash ........................................................................................ 334,491
Other assets ................................................................................ 5,194
Dividend payable ............................................................................ (100,244)
Management fee payable (note 4) ............................................................. (23,561)
Accrued expenses (note 4) ................................................................... (91,592)
-----------
124,288
-----------
NET ASSETS - 100.0%
Applicable to 16,420,283 shares of $.001 par value Capital Stock outstanding;
5,000,000,000 shares authorized (note 5) .................................................. $16,420,283
===========
NET ASSET VALUE PER SHARE ................................................................... $ 1.00
===========
<FN>
** Cost for federal income tax purposes.
</FN>
</TABLE>
See notes to financial statements.
6
<PAGE>
<TABLE>
SCUDDER INSTITUTIONAL FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
<CAPTION>
CASH PORTFOLIO
MATURITY PRINCIPAL VALUE
DATE AMOUNT (NOTE 2A)
-------- --------- ---------
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT - 14.4%
Bayerische Vereinsbank, 5.78% ..................... 4/1/96 7,000,000 7,000,000
Canadian Imperial National Bank (Yankee), 5.8% .... 1/30/96 8,000,000 8,000,000
Credit Suisse Zurich (Yankee), 5.75% .............. 1/19/96 7,000,000 7,000,069
Lloyds Bank (Yankee), 5.76% ....................... 4/10/96 7,000,000 7,000,189
Swiss Bank Corp, 5.67% ........................... 3/25/96 7,000,000 6,998,599
-----------
TOTAL CERTIFICATES OF DEPOSIT (COST $35,998,857) ......................... 35,998,857
-----------
COMMERCIAL PAPER - 61.4%
Abbey National North America ...................... 1/31/96 7,000,000 6,966,632
American General Finance Corp. .................... 1/8/96 7,000,000 6,992,242
AT&T Corp. ........................................ 4/9/96 7,000,000 6,892,393
Associates Corp. of North America ................. 1/10/96 7,000,000 6,990,025
Barclays U.S. Funding Corp. ....................... 1/8/96 4,000,000 3,995,574
Ciesco L.P. Discount Note ......................... 1/18/96 7,000,000 6,981,191
Credit Agricole U.S.A. ............................ 2/14/96 7,000,000 6,952,089
Deere Cap Corp. ................................... 1/29/96 7,000,000 6,968,967
Deutsche Bank Financial Inc. ...................... 4/10/96 7,000,000 6,891,111
Ford Credit Receivables Funding Inc. .............. 1/17/96 7,400,000 7,381,286
General Electric Co. .............................. 1/11/96 8,000,000 7,987,289
H.J. Heinz Co. .................................... 1/10/96 8,000,000 7,988,600
Eli Lilly & Co. ................................... 3/5/96 6,000,000 5,940,053
New Center Asset Trust ............................ 1/16/96 10,000,000 9,976,083
Norwest Corp. ..................................... 1/26/96 7,000,000 6,972,292
Pitney Bowes Credit Corp. ......................... 1/23/96 7,000,000 6,975,745
Pitney Bowes Credit Corp. ......................... 2/1/96 5,000,000 4,975,674
PREFCO ............................................ 1/24/96 8,000,000 7,970,764
Prudential Funding Corp. .......................... 1/9/96 7,000,000 6,991,056
Rincon Securities Inc. (LOC Trust Co. of Georgia) . 1/12/96 7,000,000 6,987,830
Transamerica Financial ............................ 1/12/96 7,000,000 6,987,680
Warner Lambert Co.. ............................... 5/6/96 6,500,000 6,376,013
-----------
TOTAL COMMERCIAL PAPER (COST $153,140,589) ............................... 153,140,589
-----------
</TABLE>
See notes to financial statements.
7
<PAGE>
<TABLE>
SCUDDER INSTITUTIONAL FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
CASH PORTFOLIO (CONTINUED)
<CAPTION>
MATURITY PRINCIPAL VALUE
DATE AMOUNT (NOTE 2A)
-------- --------- ---------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - 7.7%
Donaldson, Lufkin & Jenrette Securities Corp.
dated 12/29/95 at 5.85% (proceeds at maturity
$19,179,459) collateralized by $19,586,000
U.S. Treasury Bill, 4/11/96
(cost $19,167,000) (note 3) ............................. 1/2/96 $19,167,000 $ 19,167,000
------------
U.S. Government Agency Obligations - 15.7%
Federal National Mortgage Assn.
Variable Rate Note, 5.68% ............................... 3/14/96* 15,000,000 15,000,000
Student Loan Marketing Assn. Variable Rate Note, 5.22% .... 1/2/96* 14,000,000 14,000,000
Student Loan Marketing Assn. Variable Rate Note, 5.40% .... 1/2/96* 10,000,000 10,031,599
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (cost $39,031,599) ............................... 39,031,599
------------
VARIABLE COUPON RENEWABLE NOTES - 1.1%
Adesa Funding Corp. (LOC Banc One), 5.83%
(cost $2,847,000) ....................................... 1/4/96* 2,847,000 2,847,000
------------
TOTAL INVESTMENTS - 100.3% (COST $250,185,045)** .......................................... 250,185,045
------------
OTHER ASSETS AND LIABILITIES - (0.3%)
Interest receivable and other assets ...................................................... 782,005
Dividend payable .......................................................................... (1,292,461)
Management fee payable (note 4) ........................................................... (34,136)
Accrued expenses (note 4) ................................................................. (212,324)
------------
(756,916)
------------
NET ASSETS - 100.0%
Applicable to 249,428,129 shares of $.001 par value Capital Stock outstanding;
5,000,000,000 shares authorized (note 5) ................................................ $249,428,129
============
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.
8
<PAGE>
<TABLE>
SCUDDER INSTITUTIONAL FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
<CAPTION>
TAX-FREE PORTFOLIO
CREDIT PRINCIPAL VALUE
RATING* SHORT-TERM MUNICIPAL SECURITIES - 103.5% AMOUNT (NOTE 2A)
- ------- --------- ---------
<S> <C> <C> <C>
ALASKA - 3.8%
A-1+ Alaska Housing Finance Corp. General Mortgage Revenue Series 1991-A
VRDN, 5.3%, 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, 5%, 12/1/20 .................. 500,000 500,000
VMIG-1 Pima County Industrial Development Authority Tucson Electric Power Co.
Series 1982-A VRDN, 5.1%, 7/1/22 ....................................... 100,000 100,000
A-1+ Salt River Project Electric System Revenue Refunding Series 1992-A TOB,
5%, 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, 5.6%, 12/1/01 .. 70,000 70,000
----------
CALIFORNIA - 7.6%
SP-1+ California Community College Finance Authority Series B
TRAN, 5%, 8/30/96 ...................................................... 1,500,000 1,504,744
A-1 Lancaster Willows Project Green Meadows Apartments Series 1995-A
VRDN, 5.375%, 2/1/05 ................................................... 1,000,000 1,000,000
SP-1+ Los Angeles County Local Educational Agencies Pool TRAN, 4.75%, 7/5/96 ... 1,000,000 1,003,170
A-1 Riverside Multi-Family Housing Revenue Countrywood Apartments Series
1985-D VRDN, 5.375%, 5/1/05 ............................................ 1,500,000 1,500,000
SP-1+ South Coast Local Education Agencies TRAN, 5%. 8/14/96 ................... 1,000,000 1,002,953
----------
TOTAL CALIFORNIA ..................................................... 6,010,867
----------
COLORADO - 1.8%
A-1+ Clear Creek County Colorado Counties Financing Program Series 1988
VRDN, 5.15%, 6/1/98 .................................................... 400,000 400,000
A-1 Colorado Housing Finance Authority Central Park Coventry Village
& Greenwood Point Series 1985 VRDN, 5.15%, 5/1/97 ...................... 1,000,000 1,000,000
----------
TOTAL COLORADO ....................................................... 1,400,000
----------
CONNECTICUT - 2.5%
A-1+ Hartford Redevelopment Agency Underwood Towers Project Series 1990
FSA Insured VRDN, 5.35%, 6/1/20 ........................................ 2,000,000 2,000,000
----------
FLORIDA - 1.5%
A-1+ Dade County Water and Sewer System Revenue Bond Series 1994
VRDN FGIC Insured, 4.9%, 10/5/22 ....................................... 1,200,000 1,200,000
----------
GEORGIA - 9.2%
A-1+ DeKalb Private Hospital Authority Egleston Children's Hospital at Emory
University Series 1994-B VRDN, 5.05%, 3/1/24 ........................... 1,400,000 1,400,000
P-1 Hapeville Industrial Development Bond Hapeville Hotel VRDN, 6%, 11/1/15 .. 1,100,000 1,100,000
MIG-1 Savannah Downtown Development Authority Series 1985 VRDN, 5.38%,
5/1/15 ................................................................. 4,800,000 4,800,000
----------
TOTAL GEORGIA ........................................................ 7,300,000
----------
</TABLE>
See notes to financial statements.
9
<PAGE>
<TABLE>
SCUDDER INSTITUTIONAL FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
TAX-FREE PORTFOLIO (CONTINUED)
<CAPTION>
CREDIT PRINCIPAL VALUE
RATING* AMOUNT (NOTE 2A)
- ------- --------- ---------
<S> <C> <C> <C>
ILLINOIS - 3.8%
SP-1+ Illinois General Obligation Revenue Anticipation Certificates Series 1995,
4.5%, 5/10/96 ............................................................... $2,000,000 $2,004,697
MIG-1 State of Illinois Revenue Anticipation Certificates Series 1995, 4.5%,
6/10/96 ..................................................................... 1,000,000 1,005,150
----------
TOTAL ILLINOIS ............................................................ 3,009,847
----------
INDIANA - 8.1%
A-1+ Purdue University Student Fee Revenue Bonds Series H VRDN, 5%, 7/1/17 ......... 2,200,000 2,200,000
MIG-1 Purdue University Student Fee Revenue Bonds Series 1995L VRDN,
5%, 7/1/20 ............................................................... 2,200,000 2,200,000
A-1+ Sullivan PCR Hoosier Energy Rural Electric Project TECP, 3.75%, 1/25/96 2,000,000 2,000,000
----------
TOTAL INDIANA ............................................................. 6,400,000
----------
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 1,506,353
----------
LOUISIANA - 3.8%
A-1+ Louisiana Public Facilities Authority Sisters of Charity Series 1993 TECP,
3.8%, 1/11/96 ............................................................... 3,000,000 3,000,000
----------
MARYLAND - 1.6%
MIG-1 Ann Arundel County Baltimore Electric & Gas Company TECP, 3.6%,
3/8/96 ...................................................................... 1,300,000 1,300,000
----------
MAINE - 1.3%
SP-1+ State of Maine TAN, 4.5%, 6/28/96 ............................................. 1,000,000 1,003,538
----------
MISSOURI - 2.5%
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
----------
NEBRASKA - 1.6%
A-1+ Omaha Public Power District TECP, 3.85%, 2/7/96 ............................... 1,300,000 1,300,000
----------
NEW MEXICO - 1.3%
MIG-1 Albuquerque Gross Receipts/Lodgers Tax Series 1991-A VRDN, 5.15%,
7/1/22 ...................................................................... 1,000,000 1,000,000
----------
NEW YORK - 3.3%
MIG-1 New York City RAN, 4.5%, 4/11/96 .............................................. 2,600,000 2,608,147
----------
OREGON - 4.4%
A-1 Oregon General Obligation Series 1973-G VRDN, 5.25%, 12/1/18 .................. 1,900,000 1,900,000
VMIG-1 Oregon General Obligation Veterans Welfare Series 1973-E VRDN,
5.15%, 12/1/16 .............................................................. 1,600,000 1,600,000
----------
TOTAL OREGON .............................................................. 3,500,000
----------
PENNSYLVANIA - 5.7%
SS&C Elk County Pennsylvania Industrial Development Authority Stackpole
Corporation Series 1989 VRDN, 4.01%, 3/1/04 ................................. 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>
A-1+ Emmaus General Authority Local Government Revenue Bond
Pool Program Series 1989-G VRDN, 5.05%, 3/1/24 .............................. $ 800,000 $ 800,000
A-1+ Emmaus General Authority Local Government Revenue Bond
Pool Program Series 1989-G5 VRDN, 5.15%, 3/1/24 ............................. 1,200,000 1,200,000
A-1 Emmaus General Authority Local Government Revenue Bond
Pool Program Series 1989-G6 VRDN, 5.1%, 3/1/24 .............................. 1,500,000 1,500,000
-----------
TOTAL PENNSYLVANIA ........................................................ 4,500,000
-----------
TENNESSEE - 5.1%
VMIG-1 Franklin Industrial Development Revenue Franklin Oaks Apartments
VRDN, 4.85%, 12/1/07 ........................................................ 4,000,000 4,000,000
-----------
TEXAS - 14.2%
MIG-1+ Gulf Coast Waste Disposal Authority Texas Exxon Project TECP, 3.5%,
3/13/96 ..................................................................... 2,000,000 2,000,000
A-1+ Austin Utility Systems Revenue TECP, 3.85%, 2/8/96 ............................ 1,000,000 1,000,000
A-1+ San Antonio Electric & Gas City Public Services Series 1995 A TECP,
3.8%, 2/14/96 ............................................................... 3,000,000 3,000,000
MIG-1 Lone Star Airport Improvement Authority Series A2 VRDN, 6%, 12/1/14 ........... 1,200,000 1,200,000
SP-1+ State of Texas TRAN, 4.75%, 8/30/96 ........................................... 4,000,000 4,019,724
-----------
TOTAL TEXAS ............................................................... 11,219,724
-----------
UTAH - 1.3%
A-1+ Salt Lake City Pooled Hospital Financings TECP, 3.85%, 2/13/96 ................ 1,000,000 1,000,000
-----------
VERMONT - 4.6%
SS&C Vermont Industrial Development Authority Mount Snow Limited Series 1904
VRDN, 4.1%, 4/1/99 .......................................................... 810,000 810,000
VMIG-1 Vermont Student Assistance Corporations VRDN, 3.75%, 1/1/04 ................... 2,800,000 2,800,000
-----------
TOTAL VERMONT ............................................................. 3,610,000
-----------
VIRGINIA - 1.3%
MIG-1 Louisa Pollution Control Revenue Virginia Electric Power Co. Series
1987 TECP, 3.6%, 3/8/96 ..................................................... 1,000,000 1,000,000
-----------
WASHINGTON - 4.9%
MIG-1 Washington Public Power Supply System Projects -1 and -3 Refunding
Revenue Series 1993-3A1 VRDN, 5.1%, 7/1/18 .................................. 1,475,000 1,475,000
A-1 Washington Public Power Supply System Nuclear Project -1 Series
1993-1A-1 VRDN, 4.95%, 7/1/17 ............................................... 2,400,000 2,400,000
-----------
TOTAL WASHINGTON .......................................................... 3,875,000
-----------
WISCONSIN - 0.6%
A-1+ Wausau Pollution Control Revenue Minnesota Mining and Manufacturing
Series 1982 VRDN, 5.31%, 8/1/17 ............................................. 500,000 500,000
-----------
WYOMING - 1.1%
A-1+ Lincoln County Pollution Control Revenue Pacificorp Project Series 1994
AMBAC Insured, 6.1%, 11/1/24 ................................................ 900,000 900,000
-----------
TOTAL INVESTMENTS - 103.5% (COST $81,813,476)** ............................... 81,813,476
-----------
</TABLE>
See notes to financial statements.
11
<PAGE>
<TABLE>
SCUDDER INSTITUTIONAL FUND, INC.
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
TAX-FREE PORTFOLIO (CONTINUED)
<CAPTION>
VALUE
(NOTE 2A)
---------
<S> <C>
OTHER ASSETS AND LIABILITIES - (3.5%)
Interest receivable and other assets ..................................................... $ 686,577
Receivable for Investments sold .......................................................... 900,000
Due to custodian bank .................................................................... (2,944,681)
Payable for Investments purchased ........................................................ (1,022,900)
Dividend payable ......................................................................... (275,770)
Management fee payable (note 4) .......................................................... (11,096)
Accrued expenses (note 4) ................................................................ (96,293)
-----------
(2,764,163)
-----------
NET ASSETS - 100.0%
Applicable to 79,049,313 shares of $.001 par value Capital Stock outstanding;
2,000,000,000 shares authorized (note 5) ............................................... $79,049,313
===========
NET ASSET VALUE PER SHARE ................................................................ $ 1.00
===========
<FN>
** Cost for federal income tax purposes.
- --------------------------------------------------------------------------------------------------------------
</FN>
</TABLE>
<TABLE>
* CREDIT RATINGS (UNAUDITED) 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.
MIG-1/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>
<TABLE>
ABBREVIATIONS USED IN THE STATEMENT:
<S> <C> <C> <C>
TECP Tax Exempt Commercial Paper VRDN Variable Rate Demand Note
OP Security with a "optional put" feature; date shown SS&C These securities are not rated by either Moody's
represents the earliest date the security may be redeemed or Standard & Poor's. Scudder has determined that
or the interest rate will be reset if the security is not these securities are of comparable quality to
redeemed rated acceptable notes on a cash flow basis and are
of appropriate credit for the standards required
by the Fund's investment objective.
TOB Tender Option Bond is a security with a periodic TRAN Tax Revenue Anticipation Note
"put feature"
RAN Revenue Anticipation Note TAN Tax Anticipation Note
</TABLE>
See notes to financial statements.
12
<PAGE>
<TABLE>
SCUDDER INSTITUTIONAL FUND, INC.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<CAPTION>
GOVERNMENT FEDERAL CASH TAX-FREE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest Income .......................... $4,067,528 $861,963 $19,021,209 $3,775,939
---------- -------- ----------- ----------
EXPENSES (NOTE 2C):
Management fee (note 4) .................. 104,332 23,561 476,472 143,025
Shareholder services (note 4) ............ 15,640 7,670 34,413 17,678
Directors' fees and expenses (note 4) .... 13,770 10,864 20,650 15,601
Custodian and accounting fees (note 4) ... 63,341 36,086 98,449 77,858
Professional services .................... 51,599 14,580 132,668 61,249
Reports to shareholders .................. 1,791 459 8,992 3,423
Registration fees ........................ 3,005 4,156 3,818 6,120
Miscellaneous ............................ 17,120 9,870 27,728 10,745
---------- -------- ----------- ----------
Total expenses before reductions ......... 270,598 107,246 803,190 335,699
Expense reductions (note 4) .............. -- (25,768) -- --
---------- -------- ----------- ----------
Net expenses ........................... 270,598 81,478 803,190 335,699
---------- -------- ----------- ----------
NET INVESTMENT INCOME AND INCREASE IN NET
ASSETS FROM OPERATIONS ................. $3,796,930 $780,485 $18,218,019 $3,440,240
========== ======== =========== ==========
</TABLE>
See notes to financial statements.
13
<PAGE>
<TABLE>
SCUDDER INSTITUTIONAL FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<CAPTION>
GOVERNMENT PORTFOLIO
------------------------
1995 1994
-------- --------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income and increase in net assets
from operations .............................................. $ 3,796,930 $ 7,073,834
Dividends (notes 2b and 2d) .................................... (3,796,930) (7,073,834)
------------- -------------
-- --
------------- -------------
CAPITAL STOCK TRANSACTIONS (NOTE 5):
Proceeds from sales of shares .................................. 432,240,116 803,305,494
Net asset value of shares issued in reinvestment of dividends .. 1,131,510 1,137,637
------------- -------------
433,371,626 804,443,131
Cost of shares redeemed ........................................ (471,317,385) (882,511,092)
------------- -------------
Increase (decrease) in net assets from Capital Stock
transactions ................................................. (37,945,759) (78,067,961)
------------- -------------
Total increase (decrease) in net assets .......................... (37,945,759) (78,067,961)
NET ASSETS:
Beginning of period ............................................ 117,864,120 195,932,081
------------- -------------
End of period .................................................. $ 79,918,361 $ 117,864,120
============= =============
</TABLE>
See notes to financial statements.
14
<PAGE>
<TABLE>
<CAPTION>
Federal Portfolio Cash Portfolio Tax-Free Portfolio
- --------------------------- ------------------------------- -----------------------------
1995 1994 1995 1994 1995 1994
- ------------ ------------- -------------- --------------- ------------- ------------
<C> <C> <C> <C> <C> <C>
$ 780,485 $ 362,379 $ 18,218,019 $ 15,242,973 $ 3,440,240 $ 3,879,840
(780,485) (362,379) (18,218,019) (15,242,973) (3,440,240) (3,879,840)
- ------------ ------------ ------------- --------------- ------------- -------------
-- -- -- -- -- --
- ------------ ------------ ------------- --------------- ------------- -------------
81,622,544 49,187,822 924,578,235 1,756,715,344 522,266,284 908,058,572
690,840 344,539 6,908,170 2,606,116 907,361 1,407,961
- ------------ ------------ ------------- --------------- ------------- -------------
82,313,384 49,532,361 931,486,405 1,759,321,460 523,173,645 909,466,533
(76,948,070) (46,094,573) (953,063,076) (1,956,022,378) (611,981,728) (866,656,883)
- ------------ ------------ ------------- --------------- ------------- -------------
5,365,314 3,437,788 (21,576,671) (196,700,918) (88,808,083) 42,809,650
- ------------ ------------ ------------- --------------- ------------- -------------
5,365,314 3,437,788 (21,576,671) (196,700,918) (88,808,083) 42,809,650
11,054,969 7,617,181 271,004,800 467,705,718 167,857,396 125,047,746
- ------------ ------------ ------------- --------------- ------------- -------------
$ 16,420,283 $ 11,054,969 $ 249,428,129 $ 271,004,800 $ 79,049,313 $ 167,857,396
============ ============ ============= =============== ============= =============
</TABLE>
See notes to financial statements.
15
<PAGE>
<TABLE>
SCUDDER INSTITUTIONAL FUND, INC.
FINANCIAL HIGHLIGHTS
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> <C>
GOVERNMENT PORTFOLIO
Year ended 12/31/95 ........... $1.00 $.055 $(.055) $1.00 5.60% 0.39% 5.46% $ 80
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
FEDERAL PORTFOLIO (a) (b)
Year ended 12/31/95 ........... 1.00 .049 (.049) 1.00 5.06 0.52 4.97 16
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
CASH PORTFOLIO
Year ended 12/31/95 ........... 1.00 .057 (.057) 1.00 5.88 0.25 5.73 249
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
TAX-FREE PORTFOLIO
Year ended 12/31/95 ........... 1.00 .036 (.036) 1.00 3.69 0.35 3.61 79
Year ended 12/31/94 (a) (b) ... 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
<FN>
(a) The annualized operating expense ratio including expenses reimbursed, management fee and other expenses not imposed would
have been: 0.68%, 0.77%, 0.83%, 0.69%, and 0.67% and for the years ended December 31, 1995, 1994, 1993, 1992, and 1991,
respectively for the Federal Portfolio, and 0.29% for the year ended December 31, 1994 for the Tax-Free Portfolio. (b)
(b) Total returns are higher, for the periods indicated, due to the maintenance of the Fund's expenses.
</FN>
</TABLE>
16
<PAGE>
SCUDDER INSTITUTIONAL FUND, INC.
NOTES TO FINANCIAL STATEMENTS
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 rate of amortization to maturity
of any premium or discount. This method results in a value approximating market.
(b) Federal Income Taxes--The Fund intends to qualify each Portfolio as
a regulated investment company under subchapter M of 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 date. 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, the investment manager 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 agreed not to impose a portion of its management
fee until October 31, 1996 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 year ended December 31, 1995, no such reimbursement was
required.
Scudder Service Corporation ("SSC"), a subsidiary of Scudder, is the
Fund's shareholders service, transfer and dividend disbursing agent. For the
year ended December 31, 1995, the amount charged to the Fund by SSC aggregated
$13,570 for the Government Portfolio, $7,354 for the Federal Portfolio, $32,409
for the Cash Portfolio, and $15,963 for the Tax-Free Portfolio, of which $2,037,
remains unpaid at December 31, 1995 for each of the funds.
Scudder Fund Accounting Corporation ("SFAC"), a subsidiary of Scudder,
is responsible for determining the daily net asset value per share and
maintaining the portfolio and general accounting records for the Portfolios.
For the year ended December 31, 1995, the amount charged to the Portfolios by
SFAC aggregated $30,000 for the Government Portfolio, $4,232 for the Federal
Portfolio, $45,686 for the Cash Portfolio, and $31,636 for the Tax-Free
Portfolio, of which $2,500, $574, $3,730, and $2,500, respectively, remain
unpaid at December 31, 1995. For the year ended December 31, 1995 for the
Federal Portfolio, SFAC did not impose fees amounting to $25,768.
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 $425,834, an applicable portion of which is included in accrued
expenses of each of the Portfolios.
5. CAPITAL STOCK
At December 31, 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 $79,838,443 for the Government
Portfolio, $16,403,863 for the Federal Portfolio, $249,178,701 for the Cash
Portfolio and $78,970,264 for the Tax-Free Portfolio. At December 31, 1995, one
holder of record of the Government Portfolio held approximately 49% of the
outstanding shares; two holders of the Federal Portfolio held approximately 31%
and 29% each of the outstanding shares; two holders of the Cash Portfolio held
approximately 43% and 25% each of the outstanding shares; and two holders of
the Tax-Free Portfolio held approximately 44% and 32% each of the outstanding
shares.
18
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
SCUDDER INSTITUTIONAL FUND, INC.
In our opinion, the accompanying statements of net assets and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
the Institutional Government Portfolio, Institutional Federal Portfolio,
Institutional Cash Portfolio, and Institutional Tax-Free Portfolio (each a
separate portfolio of Scudder Institutional Fund, Inc., hereafter referred to
as the "Fund") at December 31, 1995, the results of each of their operations
for the year then ended, the changes in each of their net assets for each of
the two years in the period then ended and the financial highlights for each of
the five years in the period then ended, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 1995 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York
February 12, 1996
- --------------------------------------------------------------------------------
FEDERAL TAX STATUS OF 1995 DIVIDENDS
The total amount of dividends declared in 1995 by each of the Federal
Portfolio, Government Portfolio and Cash Portfolio of Scudder Institutional
Fund, Inc. is taxable as ordinary dividend income for Federal income tax
purposes. None of this amount qualifies for the dividends received deduction
available to corporations.
All of the dividends from the Tax-Free Portfolio declared in 1995 are
exempt from Federal income tax. However, in accordance with the Internal Revenue
Code, you are required to report them on your 1995 Federal income tax return.
Although dividend income from the Tax-Free Portfolio is exempt from
Federal taxation, it may not be exempt from state or local taxation. You should
consult your tax advisor as to the state and local tax status of the dividends
you received.
- --------------------------------------------------------------------------------
19
<PAGE>
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
Scudder, Stevens & Clark, Inc.
345 Park Avenue
New York, New York 10154
Distributor
Scudder Investor Services, Inc.
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 guaranteed by the U.S. Government.
Each 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.
INSTITUTIONAL GOVERNMENT PORTFOLIO
INSTITUTIONAL FEDERAL PORTFOLIO
INSTITUTIONAL CASH PORTFOLIO
INSTITUTIONAL TAX-FREE PORTFOLIO
ANNUAL REPORT
DECEMBER 31, 1995
