INSTITUTIONAL GOVERNMENT PORTFOLIO
INSTITUTIONAL CASH PORTFOLIO
INSTITUTIONAL TAX-FREE PORTFOLIO
SEMIANNUAL REPORT
JUNE 30, 1997
<PAGE>
<TABLE>
<CAPTION>
Board of Directors
<S> <C>
DAVID S. LEE(1) Chairman of the Board; Managing Director, Scudder,
Stevens
& Clark, Inc.
EDGAR R. FIEDLER(1) (2) (3) Senior Fellow and Economic Counsellor, The Conference
Board, Inc.
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
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
STEPHEN L. AKERS Vice President
K. SUE COTE Vice President
CAROL L. FRANKLIN 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 Secretary
PAMELA A. McGRATH Vice President and Treasurer
</TABLE>
2
<PAGE>
Dear Shareholder:
Operated exclusively for institutions and their clients, Scudder Institutional
Fund, Inc., which includes Institutional Government Portfolio, Institutional
Cash Portfolio, and Institutional Tax-Free Portfolio, provided competitive
investment results in the first half of 1997. These three money market
portfolios seek to provide high levels of current income while preserving
capital and maintaining liquidity.
All three portfolios seek to maintain a net asset value of $1.00, and have done
so since their inception. (There is no guarantee, of course, that each portfolio
will maintain stable net asset values.) The Institutional Tax-Free Portfolio
seeks to provide income exempt from Federal income tax.
Total net assets for Institutional Government Portfolio, Institutional Cash
Portfolio, and Institutional Tax-Free Portfolio were $451 million on June 30,
1997, compared with $425 million at the start of the year. A table showing
dividend payments and other financial information for the six months ended June
30, 1997, as well as the last five years ended December 31, 1996 for each
portfolio is on page 16. In addition, please see the following pages for
financial statements for the six months ended June 30, 1997, as well as a list
of each portfolio's investments.
If you have any questions concerning the Scudder Institutional Fund, Inc.,
please call toll free (800) 854-8525.
/s/David S. Lee
David S. Lee
Chairman
3
<PAGE>
Scudder Institutional Fund, Inc.
Statement of Net Assets (Unaudited)
June 30, 1997
GOVERNMENT PORTFOLIO
<TABLE>
<CAPTION>
Maturity Principal Value
Date Amount (Note 2a)
------------- ------------- -------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS -- 10.9%
Repurchase Agreement with State Street Bank dated 6/30/97
at 5.6% (proceeds at maturity $4,990,776) collateralized
by a $4,170,000 U.S. Treasury Bond, 8.5%, 2/15/20,
(Cost $4,990,000) (note 3) ................................. 7/1/97 $ 4,990,000 $ 4,990,000
-------------
U.S. Government Agency Obligations -- 89.2%
Federal Home Loan Bank Discount Note .......................... 8/8/97 2,000,000 1,988,853
Federal Home Loan Bank Discount Note .......................... 10/9/97 2,000,000 1,970,500
Federal Home Loan Bank Discount Note .......................... 10/27/97 1,500,000 1,474,138
Federal Home Loan Bank Discount Note .......................... 12/1/97 745,000 727,649
Federal Home Loan Bank Discount Note .......................... 12/3/97 2,000,000 1,952,553
Federal Home Loan Bank Discount Note........................... 3/16/98 2,000,000 1,922,170
Federal Home Loan Bank Discount Note .......................... 9/24/97 1,500,000 1,480,946
Federal Home Loan Mortgage Corp. Discount Note ................ 8/12/97 1,000,000 993,653
Federal Home Loan Mortgage Corp. Discount Note................. 9/10/97 1,000,000 989,192
Federal National Mortgage Association Discount Note ........... 7/9/97 1,500,000 1,498,257
Federal National Mortgage Association Discount Note ........... 7/10/97 2,000,000 1,997,385
Federal National Mortgage Association Discount Note ........... 7/29/97 1,000,000 995,800
Federal National Mortgage Association Discount Note............ 9/10/97 1,000,000 989,232
Federal National Mortgage Association Discount Note ........... 11/7/97 1,000,000 980,471
Federal National Mortgage Association Discount Note ........... 12/22/97 1,000,000 974,625
Student Loan Marketing Association, 5.42% ..................... 7/1/97* 8,000,000 8,005,210
Student Loan Marketing Association, 5.24% ..................... 7/1/97* 11,700,000 11,700,000
-------------
Total U.S. Government Agency Obligations (cost $40,640,634) .................................... 40,640,634
-------------
Total Investments -- 100.1% (cost $45,630,634)**................................................. 45,630,634
-------------
Other Assets and Liabilities -- (0.1%)
Cash ............................................................................................ 211
Interest receivable and other assets ............................................................ 195,723
Dividend payable ................................................................................ (173,015)
Management fee payable (note 4) ................................................................. (5,133)
Accrued expenses (note 4) ....................................................................... (69,989)
-------------
................................................................................................ (52,203)
-------------
Net Assets -- 100.0%
Applicable to 45,578,431 shares of $.001 par value Capital Stock outstanding;
5,000,000,000 shares authorized (note 5) ..................................................... $45,578,431
=============
</TABLE>
See notes to financial statements.
4
<PAGE>
Scudder Institutional Fund, Inc.
Statement of Net Assets (Unaudited)
June 30, 1997
GOVERNMENT PORTFOLIO (continued)
<TABLE>
<S> <C>
Net Asset Value Per Share ........................................................................ $1.00
=====
</TABLE>
* Date of next interest rate change.
** Cost for federal income tax purposes.
See notes to financial statements.
5
<PAGE>
Scudder Institutional Fund, Inc.
Statement of Net Assets (Unaudited)
June 30, 1997
CASH PORTFOLIO
<TABLE>
<CAPTION>
Maturity Principal Value
Date Amount (Note 2a)
------------- ------------- -------------
<S> <C> <C> <C>
Certificates of Deposit -- 34.1%
ABN-AMRO Bank NV YCD 5.56% ................................ 7/21/97 $ 6,000,000 $ 6,000,100
Bank of America NT & SA 5.87% ............................. 1/5/98 15,000,000 15,000,000
Dai Ichi Kangyo Bank YCD 5.82% ............................ 8/29/97 15,000,000 15,001,054
Deutche Bank YCD 5.67% .................................... 9/8/97 15,000,000 15,000,000
Nationsbank, NA South BN 5.55% ............................ 7/24/97 15,000,000 15,000,000
Pittsburgh NAT BK BN 5.59% ................................ 7/1/97* 10,000,000 10,000,000
Societe Generale YCD 5.75% ................................ 1/5/98 10,000,000 9,994,086
Sumitomo Bank BA .......................................... 7/14/97 6,600,000 6,586,939
Bank of Tokyo Mitsubishi 5.67% ............................ 7/31/97 12,000,000 12,000,194
------------
Total Certificates of Deposit (cost $104,582,373) .............................................. 104,582,373
------------
Commercial Paper -- 37.9%
Ford Motor Credit ......................................... 10/30/97 9,000,000 8,838,465
Lasalle National Bank 5.81% ............................... 12/2/97 10,000,000 10,000,831
FCAR Owner Trust 1 CP ..................................... 7/10/97 10,000,000 9,986,100
Prudential Funding CP ..................................... 7/14/97 15,000,000 14,970,100
Ciesco, LP ................................................ 7/15/97 12,000,000 11,973,867
Centric Funding Corp. CP .................................. 8/4/97 15,000,000 14,920,667
Ameritech Corp. CP ........................................ 8/6/97 10,000,000 9,944,150
GE Capital Corp ........................................... 8/21/97 7,000,000 6,946,946
Assoc. Corp. of North America CP .......................... 8/28/97 12,000,000 11,892,507
Pitney Bowes CR Corp ...................................... 9/17/97 12,000,000 11,853,100
Beneficial Corp ........................................... 9/25/97 5,000,000 4,936,694
------------
Total Commercial Paper (cost $116,263,427) ..................................................... 116,263,427
------------
Corporate Bonds -- 20.8%
American Express Centurian 5.6575% ........................ 7/24/97* 10,000,000 10,000,000
Bank One Columbus BK NT 5.69% ............................. 7/1/97* 10,000,000 9,995,437
Bankers Trust Co F/R MTN 5.71% ............................ 7/1/97* 15,000,000 15,000,000
Kellogg Corp. 5.90% ....................................... 7/15/97 5,000,000 5,000,061
Student Loan Marketing Association 5.42% .................. 7/1/97* 10,000,000 10,006,512
Student Loan Marketing Association 5.24% .................. 7/1/97* 14,000,000 14,000,000
Total Corporate Bonds (cost $64,002,011) ....................................................... 64,002,011
------------
</TABLE>
See notes to financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
Maturity Principal Value
Date Amount (Note 2a)
------------- ------------- -------------
<S> <C> <C> <C>
Repurchase Agreements -- 2.9%
State Street Bank dated 6/30/97 at 5.6% (proceeds at
maturity $8,838,375) collateralized by $8,840,000
U.S. Treasury Bond, 6%, 8/31/97 (cost $8,837,000)
(note 3) ............................................... 7/1/97 8,837,000 8,837,000
------------
U.S. Government Agency Obligations -- 4.9%
FNMA FLTR 5.29% ........................................... 9/14/97* 15,000,000 15,000,000
------------
Total Investments -- 100.6% (cost $308,684,411)** ................................................ 308,684,811
------------
Other Assets and Liabilities -- (0.6%)
Cash ............................................................................................ 558
Interest receivable and other assets ............................................................ 1,556,952
Dividend payable ................................................................................ (1,464,067)
Payable for Fund shares redeemed ................................................................ (1,729,997)
Management fee payable (note 4) ................................................................. (41,236)
Accrued expenses (note 4) ....................................................................... (115,016)
------------
(1,792,806)
------------
Net Assets -- 100.0%
Applicable to 306,892,005 shares of $.001 par value Capital Stock outstanding;
5,000,000,000 shares authorized (note 5) ..................................................... $ 306,892,005
=============
Net Asset Value Per Share ....................................................................... $1.00
=====
</TABLE>
* Date of next interest rate change.
** Cost for federal income tax purposes.
See notes to financial statements.
7
<PAGE>
Scudder Institutional Fund, Inc.
Statement of Net Assets (Unaudited)
June 30, 1997
TAX-FREE PORTFOLIO
<TABLE>
<CAPTION>
Credit Principal Value
Rating* Short-Term Municipal Securities -- 97.3% Amount (Note 2a)
- ------- --------------- --------------
<S> <C> <C> <C>
Alaska
A1+ Alaska Housing Finance Corp., General Mortgage Revenue, Series 1991-A,
Weekly Demand Note, 4.2%, 6/1/26 ............................................ $ 3,000,000 $ 3,000,000
MIG1 Valdez Alaska Marine Terminal, Arco Transportation Alaska Inc. Project,
Series 1994 A, TECP, 3.8%, 9/9/97 ........................................... 3,000,000 3,000,000
--------------
Total Alaska ........................................................... 6,000,000
--------------
Arizona
A1+ Apache County, AZ, Industrial Development Revenue Tuscan Electric Co.,
Springerville Project, Series 1985 A, Weekly Demand Note, 4.15%,
12/1/20 ..................................................................... 500,000 500,000
A1+ Pima County, AZ, Industrial Development Authority, Tucson Electric Power
Co., Series 1992 A, Weekly Demand Note, 4.2%, 7/1/22 ........................ 1,900,000 1,900,000
A1+ Scottsdale Arizona Industrial Development Authority Hospital Revenue,
Scottsdale Hospital, Weekly Demand Note, 4.15%, 9/1/22 ...................... 3,000,000 3,000,000
--------------
Total Arizona .......................................................... 5,400,000
--------------
California
SS&C City of Riverside, CA Countrywood Apartments, Multi-Family Revenue,
Series 1985 D, Weekly Demand Bonds, 4.25%, 5/1/05 ........................... 1,500,000 1,500,000
A1+ Huntington Beach, CA, Multi-Family Housing Revenue, River Meadows
Apartments, Series B, Weekly Demand Bonds, 4%, 10/1/05 ...................... 1,000,000 1,000,000
SP1+ Los Angeles County, CA, Tax and Revenue Anticipation Notes, Series 1997
A, 4.5%, 6/30/98 ............................................................ 1,000,000 1,006,240
--------------
Total California ....................................................... 3,506,240
--------------
Colorado
A1+ Clear Creek County, CO, Colorado Counties Financing Program, Series 1988,
Weekly Demand Note, 4.2%, 6/1/98 ............................................ 60,000 60,000
--------------
Connecticut
A1+ Hartford Redevelopment Agency, VRDN, 3.95%, 6/1/20 ............................. 2,000,000 2,000,000
--------------
District of Columbia
A1+ District of Columbia, General Fund Recovery Series B-3, Variable Rate
Demand Note, 4.1%, 6/1/03 ................................................... 3,300,000 3,300,000
--------------
Florida
A1+ City of Gainesville, Florida Utilities System, Series C, TECP, 3.7%,
8/14/97 ..................................................................... 1,000,000 1,000,000
MIG1 Jacksonville Florida Pollution Control Revenue, Florida Power and Light,
Series 1994, TECP, 3.7%, 9/16/97 ............................................ 1,000,000 1,000,000
MIG1 Jacksonville Florida Pollution Control Revenue, Florida Power and Light,
Series 1994, TECP, 3.7%, 8/11/97 ............................................ 1,000,000 1,000,000
A1 Sarasota County, Florida Public Hospital District Sarasota Memorial Hospital
Series 1993 A, TECP, 3.75%, 8/8/97 .......................................... 2,500,000 2,500,000
MIG1 University of Northern Florida Capital Improvement revenue, VRDN, 4.15%,
11/1/24 ..................................................................... 2,000,000 2,000,000
</TABLE>
See notes to financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
Credit Principal Value
Rating* Amount (Note 2a)
- ------- --------------- --------------
<S> <C> <C> <C>
A1+ Volusia County, FL , Health Facility Authority, VRDN, 4.25%, 9/1/20 ............ 600,000 600,000
--------------
Total Florida .......................................................... 8,100,000
--------------
Georgia
A1+ Burke County, GA, Pollution Control Revenue, Ogelthorpe Power, Vogtle
Project, Series 1994-A, Weekly Demand Note, FGIC Insured, 4.15%,
1/1/19 ...................................................................... 1,000,000 1,000,000
A1+ DeKalb Private Hospital Authority, Egleston Children's Hospital at Emory
University, 1994 Series B, Weekly Demand Note, 4.2%, 3/1/24 ................. 1,400,000 1,400,000
--------------
Total Georgia .......................................................... 2,400,000
--------------
Idaho
MIG1 Idaho Health Facilities Authority Revenue, St. Lukes Regional Medical
Center Project, Series 1995, Daily Demand Note, 4.1%, 5/1/22 ................ 2,500,000 2,500,000
MIG1 Idaho Tax Anticipation Notes, Series 1997, 4.625%, 6/30/98 ..................... 1,000,000 1,007,150
--------------
Total Idaho ............................................................ 3,507,150
--------------
Illinois
A1+ Illinois Health Facilities Authority Rush Presbyterian St. Lukes Hospital,
Series 1989 A, TECP, 3.65%, 9/12/97 ......................................... 1,200,000 1,200,000
MIG1 Illinois Educational Facilities Authority, University Pooled Finance Program,
Weekly Demand Note, FGIC Insured, 4.15%, 12/1/05 ............................ 1,810,000 1,810,000
--------------
Total Illinois ......................................................... 3,010,000
--------------
Indiana
A1+ City Of Sullivan, Indiana, National Rural Utilities Cooperative Finance Corp.,
Hoosier Energy Rural Energy, TECP, 3.65%, 9/9/97 ............................ 1,000,000 997,271
--------------
Iowa
SP1+ Iowa Schools Cash Anticipation Program, Series 1997 A, 4.5%, 6/26/98 ........... 2,000,000 2,013,292
--------------
Kentucky
MIG1 Mayfield, KY, Multi-City Lease Revenue Kentucky League of Cities Funding
Trust, Weekly Demand Note, Series 1996, 4.3%, 7/1/26 ........................ 1,000,000 1,000,000
--------------
Louisiana
MIG1 Louisiana Public Facilities Authority Hospital Revenue Willis Knighton
Medical Center, Weekly Demand Note, AMBAC Insured, 4.15%,
9/1/25 ...................................................................... 3,000,000 3,000,000
--------------
Massachusetts
SP1 Massachusetts Bay Transportation Authority, MA, Series B, 4.75%, 9/5/97 ........ 1,000,000 1,001,391
--------------
Missouri
SP1+ Missouri HEFA School District Advance Funding Notes, Series 1996 C,
Kansas City School District, 4.5%, 9/8/97 ................................... 1,000,000 1,001,093
--------------
New York
MIG1 Nassau County, NY, General Obligation Notes, Series 1996, 4.25%,
8/15/97 ..................................................................... 2,000,000 2,001,673
</TABLE>
See notes to financial statements.
9
<PAGE>
Scudder Institutional Fund, Inc.
Statement of Net Assets (Unaudited)
June 30, 1997
TAX-FREE PORTFOLIO (continued)
<TABLE>
<CAPTION>
Credit Principal Value
Rating* Amount (Note 2a)
- ------- --------------- --------------
<S> <C> <C> <C>
MIG1 New York City, NY, General Obligation, Daily Demand Note, 3.9%,
8/1/23 ...................................................................... 3,000,000 3,000,000
--------------
Total New York ......................................................... 5,001,673
--------------
North Carolina
A1+ North Carolina Municipal Power Agency # 1, Catawba Project, Series
1996 A, TECP, 3.6%, 10/24/97 ................................................ 2,000,000 2,000,000
--------------
North Dakota
MIG1 Grand Forks, ND, Hospital Facilities Revenue, Daily Demand Note, 4.15%,
12/1/16 ..................................................................... 500,000 500,000
--------------
Ohio
MIG1 Franklin County, OH, Health System, St. Anthony's Medical Center, Daily
Demand Note, 4%, 7/1/15 ..................................................... 400,000 400,000
A1+ Ohio State University Revenue, General Receipts Bonds, Weekly Variable
Rate Demand Bond, Series 1986 B, 4.15%, 12/1/06 ............................. 1,500,000 1,500,000
--------------
Total Ohio ............................................................. 1,900,000
--------------
Oregon
MIG1 Oregon General Obligation Series 1973-G, VRDN, 4.05%, 12/1/18 ................... 1,900,000 1,900,000
Pennsylvania
A1+ Delaware County, PA, Airport Facilities Revenue, United Parcel Service,
Daily Demand Note, 4%, 12/1/15 .............................................. 500,000 500,000
SS&C Elk County Pennsylvania Industrial Development Authority, Series 1989,
Weekly Demand Note, 4.41%, 3/1/04 ........................................... 1,000,000 1,000,000
A1+ Emmaus, PA, General Authority Local Government, Revenue Bond Pool
Program, Weekly Demand Note, 4.2%, 3/1/24 ................................... 1,000,000 1,000,000
A1+ Emmaus, PA, General Authority, Local Government Revenue Bond Pool
Program, Series 1989 G, Weekly Demand Note, 4.2%, 3/1/24 ..................... 1,500,000 1,500,000
SS&C Philadelphia, PA, School District Tax and Revenue Anticipation Notes, Series
1993, AMBIA Insured, 4.5%, 7/1/98 ........................................... 1,000,000 1,005,824
--------------
Total Pennsylvania ..................................................... 5,005,824
--------------
South Carolina
A1 South Carolina Public Service Authority, Series 1997, TECP, 3.65%,
9/9/97 ...................................................................... 2,000,000 2,000,000
MIG1 South Carolina Jobs-Economic Development Authority, Franciscan Sisters of
the Poor, St. Francis Hospital, VRDN, 4.1%, 7/1/22 .......................... 700,000 700,000
A1 South Carolina Public Service Authority, Series 1997, TECP, 3.45%,
7/22/97 ..................................................................... 1,000,000 1,000,000
--------------
Total South Carolina ................................................... 3,700,000
--------------
Tennessee
MIG1 Franklin, TN, Industrial Development Revenue, Franklin Oaks Apartments,
Weekly Demand Note, Series 1985, 4.15%, 12/15/21 ............................ 2,000,000 2,000,000
--------------
Texas
A1+ Austin, Texas Utility Systems Revenue, TECP, 3.5%, 7/22/97 ..................... 3,000,000 3,000,000
</TABLE>
See notes to financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
Credit Principal Value
Rating* Amount (Note 2a)
- ------- --------------- --------------
<S> <C> <C> <C>
P1 Grapevine, TX, Industrial Development Authority Corp., 4.1%,
12/1/24 ..................................................................... 300,000 300,000
A1 North Central, TX Health Facilities Development Corp., Presbyterian
Medical Center, 1995 Series D, Daily Demand Note (c), 4.1%, 12/1/15 ......... 600,000 600,000
P1 San Antonio, TX Electric and Gas, Series 1988A, TECP, 3.4%, 7/10/97 ............ 1,500,000 1,500,000
A1+ San Antonio, TX Water System Revenue, Series 1995, TECP, 3.65%,
9/19/97 ..................................................................... 1,500,000 1,500,000
SS&C San Antonio, TX, Industrial Development Authority, River Center
Associates Project, Weekly Demand Note, 4.25%, 12/1/12 ...................... 1,900,000 1,900,000
MIG1 State of Texas Tax and Revenue Anticipation Notes, Series 1996, 4.75%,
8/29/97 ..................................................................... 1,000,000 1,001,279
SP1+ Texas Tax and Revenue Anticipation Notes, Series 1996, 4.75%, 8/29/97 .......... 3,000,000 3,003,840
--------------
Total Texas ............................................................ 12,805,119
--------------
Vermont
SS&C Vermont Industrial Development Authority Mount Snow, Limited Series 1904
VRDN, 4.41%, 4/1/99 ......................................................... 435,000 435,000
MIG1 Vermont Student Assistance Corporation VRDN, 3.8%, 1/1/04 ...................... 2,700,000 2,700,000
--------------
Total Vermont .......................................................... 3,135,000
--------------
Washington
A1+ State of Washington Various Purpose General Obligation Series 96B, Weekly
Demand Note, 4.1%, 6/1/20 ................................................... 2,400,000 2,400,000
MIG1 Washington Health Care Facilities Authority, Fred Hutchinson Cancer
Research Center Series-B VRDN, 4.1%, 1/1/18 ................................. 2,000,000 2,000,000
SS&C Washington Motor Vehicle Fuel Tax, Series 1996, 5%, 7/1/98 ..................... 1,000,000 1,011,440
A1 Washington Public Power Supply System Projects #1 and #3 Refunding
Revenue Series 1993-1A1 VRDN, 4.1%, 7/1/18 .................................. 1,475,000 1,475,000
MIG1 Washington State Public Power Supply System, Nuclear Project #1, 1993
Series 1A-1, Weekly Demand Note, 4%, 7/1/17 ................................. 4,700,000 4,700,000
--------------
Total Washington ....................................................... 11,586,440
--------------
Wisconsin
A1+ Wausau, WI, Pollution Control Revenue, Minnesota Mining and
Manufacturing, Series 1982, Floating Rate Demand Notes, 4.5%,
8/1/17 ...................................................................... 500,000 500,000
--------------
Total Investment (Cost $96,330,493)** .......................................... 96,330,493
--------------
Other Assets and Liabilities -- 2.7%
Cash ........................................................................................... 4,248,570
Interest receivable and other assets ........................................................... 663,861
Receivable for investments sold ................................................................ 100,000
Payable for investments purchased .............................................................. (2,013,390)
Dividend payable ............................................................................... (270,890)
Management fee payable (note 4) ................................................................ (11,477)
Accrued expenses (note 4) ...................................................................... (87,440)
--------------
2,629,234
--------------
</TABLE>
11
<PAGE>
Scudder Institutional Fund, Inc.
Statement of Net Assets (Unaudited)
June 30, 1997
TAX-FREE PORTFOLIO (continued)
<TABLE>
<S> <C>
Net Assets -- 100.0%
Applicable to 98,959,727 shares of $.001 par value Capital Stock outstanding;
2,000,000,000 shares authorized (note 5) ...................................................................... $ 98,959,727
==============
Net Asset Value Per Share ......................................................................................... $1.00
=====
</TABLE>
** Cost for federal income tax purposes.
- --------------------------------------------------------------------------------
* Credit ratings (unaudited) shown are either by Moody's Investors Service,
Inc., Standard & Poor's Corporation or Scudder:
Moody's Standard & Poor's
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.
Abbreviations used in the statement:
TECP Tax Exempt Commercial Paper VRDN Variable Rate Demand Note
TAN Tax Anticipation Note TRAN Tax Revenue Anticipation Note
SS&C These securities are not rated by RAN Revenue Anticipation Note
either Moody's or Standard & Poor's.
Scudder has determined that these
securities are of comparable quality
to rated acceptable notes on a cash
flow basis and are of appropriate
credit for the standards required by
the Fund's investment objective.
See notes to financial statements.
12
<PAGE>
Scudder Institutional Fund, Inc.
Statement of Operations (Unaudited)
For the six months ended June 30, 1997
<TABLE>
<CAPTION>
Government Cash Tax-Free
Portfolio Portfolio Portfolio
------------ ------------- ------------
<S> <C> <C> <C>
Investment Income:
Interest Income ......................................... $ 1,227,083 $ 8,819,690 $ 1,736,332
------------ ------------- ------------
Expenses:
Management fees ......................................... 34,125 239,952 72,078
Shareholder services .................................... 13,645 16,556 16,378
Directors' fees and expenses ............................ 5,342 6,867 5,424
Custodian and accounting fees ........................... 19,857 39,600 20,141
Auditing ................................................ 1,585 16,323 7,246
Professional services ................................... 2,545 13,489 4,448
Reports to shareholders ................................. 385 3,421 1,449
Interest expense ........................................ -- -- 14,625
Registration fees ....................................... 2,253 2,870 1,265
Miscellaneous ........................................... 8,549 6,104 2,746
------------ ------------- ------------
Net expenses ......................................... 88,286 345,182 145,800
------------ ------------- ------------
Net investment income and increase in net
assets from operations ............................... $ 1,138,797 $ 8,474,508 $ 1,590,532
============ ============= ============
</TABLE>
See notes to financial statements.
13
<PAGE>
Scudder Institutional Fund, Inc.
Statements of Changes in Net Assets
For the six months ended June 30, 1997
<TABLE>
<CAPTION>
Government Portfolio
------------------------------
Six Months
Ended Year
6/30/97 Ended
(Unaudited) 12/31/96
--------------- --------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations:
Net investment income and increase in net assets
from operations ........................................ $ 1,138,797 $ 3,255,254
Dividends ................................................. (1,138,797) (3,255,254)
--------------- --------------
-- --
--------------- --------------
Capital Stock Transactions:
Proceeds from sales of shares ............................. 42,814,908 264,453,259
Net asset value of shares issued in reinvestment of
dividends .............................................. 81 974,278
--------------- --------------
42,814,989 265,427,537
Cost of shares redeemed ................................... (44,266,153) (298,316,303)
--------------- --------------
Increase (decrease) in net assets from capital stock
transactions ........................................... (1,451,164) (32,888,766)
--------------- --------------
Total increase (decrease) in net assets ...................... (1,451,164) (32,888,766)
Net Assets:
Beginning of period ....................................... 47,029,595 79,918,361
--------------- --------------
End of period ............................................. $ 45,578,431 $ 47,029,595
=============== ==============
See notes to financial statements.
</TABLE>
14
<PAGE>
Cash Portfolio Tax-Free Portfolio
------------------------------- -------------------------------
Six Months Six Months
Ended Year Ended Year
6/30/97 Ended 6/30/97 Ended
(Unaudited) 12/31/96 (Unaudited) 12/31/96
-------------- -------------- -------------- --------------
$ 8,474,508 $ 14,910,812 $ 1,590,532 $ 3,241,536
-------------- -------------- -------------- --------------
(8,474,508) (14,910,812) (1590,532) (3,241,536)
-- -- -- --
-------------- -------------- -------------- --------------
366,040,616 752,470,938 95,351,235 323,081,752
2,161,825 4,463,405 66,043 390,286
-------------- -------------- -------------- --------------
368,202,441 756,934,343 95,417,278 323,472,038
(333,480,270) (734,192,638) (100,481,664) (298,497,238)
-------------- -------------- -------------- --------------
34,722,171 22,741,705 (5,064,386) 24,974,800
-------------- -------------- -------------- --------------
34,722,171 22,741,705 (5,064,386) 24,974,800
272,169,834 249,428,129 104,024,113 79,049,313
-------------- -------------- -------------- --------------
$ 306,892,005 $ 272,169,834 $ 98,959,727 $ 104,024,113
============== ============== ============== ==============
See notes to financial statements.
15
<PAGE>
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.
<TABLE>
<CAPTION>
Ratio of Ratio of Net
Operating Investment
Net Assets Net Assets Expenses Income Net Assets
Value, at Net Value at to average to average End of
Begining Investment Dividends End Total Daily Daily Period
Period of Period Income Paid of Period Return Net Assets Net Assets (million)
- ------------------------------ --------- --------- --------- ----------- --------- ------------ ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Government Portfolio
Six months ended 6/30/97(c). $ 1.00 $ .025 $ (.025) $ 1.00 2.51%** 0.39%* 5.01%* $ 46
Year ended 12/31/96 ........ 1.00 .051 (.051) 1.00 5.17 0.32 5.06 47
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
Cash Portfolio
Six months ended 6/30/97(c). 1.00 .026 (.026) 1.00 2.65** 0.22* 5.30* 307
Year ended 12/31/96 ........ 1.00 .052 (.052) 1.00 5.33 0.21 5.21 272
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
Tax-Free Portfolio
Six months ended 6/30/97(c). 1.00 .016 (.016) 1.00 1.66** 0.30* 3.31* 99
Year ended 12/31/96 ........ 1.00 .032 (.032) 1.00 3.29 0.28 3.25 104
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
</TABLE>
(a) The annualized operating expense ratio including expenses, reimbursed
management fee, and other expenses not imposed would have been 0.29% for
the year ended December 31, 1994 for the Tax-Free Portfolio.
(b) Total returns are higher, for the period indicated, due to the maintenance
of the Portfolio's expenses.
(c) Unaudited.
* Annualized
** Not Annualized
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 three active money market
investment portfolios: the Government Portfolio, Cash Portfolio and Tax-Free
Portfolio (collectively the "Portfolios"). The Portfolios ceased operations on
August 21, 1997.
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.
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.
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%.
On June 26, 1997, the Adviser entered into an agreement with The Zurich
Insurance Company ("Zurich"), an international insurance and financial services
organization, pursuant to which Zurich will acquire a majority interest in
Scudder, and Scudder will form a new global investment organization by combining
with Zurich's subsidiary, Zurich Kemper Investments, Inc. and change its name to
Scudder Kemper Investments, Inc. Subject to the receipt of the required
regulatory and shareholder approvals, the transaction is expected to close in
the fourth quarter of 1997.
17
<PAGE>
Scudder Institutional Fund, Inc.
Notes to Financial Statements (continued)
Scudder Service Corporation ("SSC"), a subsidiary of Scudder, is the
Portfolio's shareholders service, transfer and dividend disbursing agent. For
the six months ended June 30, 1997, the amount charged to each of the Portfolios
by SSC was $15,714, of which $2,619, remains unpaid.
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 six
months ended June 30, 1997, the amount charged to the Portfolios by SFAC was
$15,000, for the Government Portfolio, $22,587 for the Cash Portfolio, and
$15,000 for the Tax-Free Portfolio, of which $2,500, $3,578, and $2,500,
respectively, remain unpaid at June 30, 1997.
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
$199,074 an applicable portion of which is included in accrued expenses of each
of the Portfolios.
5. Capital Stock
At June 30, 1997, 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 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 $45,532,853 for the Government Portfolio, $306,585,113
for the Cash Portfolio and $98,860,768 for the Tax-Free Portfolio. At June 30,
1997, one holder of record of the Government Portfolio held approximately 98%
of the outstanding shares; one holder of the Cash Portfolio held approximately
72% of the outstanding shares; and one holder of the Tax-Free Portfolio held
approximately 84% of the outstanding shares.
18
<PAGE>
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19
<PAGE>
Institutional Government 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
Dechert Price & Rhoads
Boston, Massachusetts 02109
-----------------
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 CASH PORTFOLIO
INSTITUTIONAL TAX-FREE PORTFOLIO
SEMIANNUAL REPORT
JUNE 30, 1997
