<PAGE> 1
INVESTORS CASH TRUST
SEMI-ANNUAL REPORT TO SHAREHOLDERS
SEPTEMBER 30, 1995
<PAGE> 2
DEAR SHAREHOLDERS:
We are pleased to provide you with the Investors Cash Trust semi-annual report
for the six-month period ended September 30, 1995.
Your fund's management greatly appreciates your decision to invest in Investors
Cash Trust. During the past six months, each of the fund's Portfolios --
Government Securities and Treasury, registered solid performance and achieved
its objective of providing maximum current income from high quality money
market securities while maintaining stability of principal.
ECONOMIC REVIEW AND OUTLOOK
The momentum of the 1994 economic expansion has continued on into 1995, as
evidenced by growth in personal income, consumer spending, construction
spending and hiring during the six-month period ended September 30, 1995.
It was over a year ago that the Federal Reserve Board initiated a series of
rate hikes intended to slow economic growth and keep inflation in check. While
other markets reacted negatively to the rising rate environment, it had a
positive effect on the short-term money markets. Investors Cash Trust took
advantage of rising interest rates by investing in high quality, short-term
money market instruments.
Looking ahead, we anticipate the economy will grow at a moderate pace with some
signs of acceleration. Inflation should not become a problem, and we anticipate
an extended period of interest rate stability. While investments in other
markets may remain volatile, money market funds such as Investors Cash Trust
should offer the opportunity for attractive yields and should continue to be an
excellent place to invest your money.
Your fund's management thanks you for the vote of confidence you have shown
through your investment and continues its dedication to performance. We look
forward to serving your investment needs for years to come.
Sincerely,
/s/ Frank Rachwalski
Frank Rachwalski
Vice President and Portfolio Manager
October 12, 1995
Frank Rachwalski is Senior Vice President of Kemper Financial Services, Inc.
and Vice President and Portfolio Manager of Investors Cash Trust. Mr.
Rachwalski holds a B.B.A. and a M.B.A. degree from Loyola University.
PORTFOLIO RESULTS
For the six months ended September 30, 1995, the Fund's two Portfolios had the
following net annualized yields:
Investors Cash Trust Government Securities Portfolio had a net annualized yield
of 5.74%.
Investors Cash Trust Treasury Portfolio had a net annualized yield 5.66%.
An investment in Investors Cash Trust is neither insured nor guaranteed by the
U.S. Government, and there can be no assurance that a Portfolio will be able to
maintain a stable net asset value of $1.00 per share.
STATISTICAL NOTE
Each Portfolio's net annualized yield for the six months ended September 30,
1995, is the annualized sum of the daily dividend rates for the period. Yields
are historical and may not represent future yields, which will fluctuate.
<PAGE> 3
Investors Cash Trust
- ------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
September 30, 1995
(Value in thousands)
- ------------------------------------------------------------------------------
GOVERNMENT SECURITIES PORTFOLIO
<TABLE>
<CAPTION>
Value
<S> <C>
U.S. TREASURY NOTES - 1.5%
5.75%, 5/15/96
(average maturity: 227 days) $ 3,028
---------------------------------------------------------------------------
SHORT-TERM NOTES
---------------------------------------------------------------------------
Federal Farm Credit Banks
5.81%, 8/1/96 3,798
---------------------------------------------------------------------------
Federal Home Loan Bank
(a) 5.82%, 11/2/95 3,101
5.74% - 5.99%, 5/15/96 9,406
---------------------------------------------------------------------------
Federal Home Loan Mortgage Corporation
5.62% - 5.65%, 10/13/95-11/30/95 41,827
(a) 5.70%, 11/15/95 3,000
---------------------------------------------------------------------------
Federal National Mortgage Association
(a) 6.12% - 6.35%, 10/1/95 7,000
5.60% - 5.79%, 10/11/95 - 6/21/96 38,670
---------------------------------------------------------------------------
TOTAL SHORT-TERM NOTES - 51.6%
(average maturity: 70 days) 106,802
---------------------------------------------------------------------------
(b) REPURCHASE AGREEMENTS
(Dated 9/95, collateralized by Federal Home Loan
Mortgage Corporation and Federal National
Mortgage Association Securities)
---------------------------------------------------------------------------
Bear, Stearns & Co., Inc.
5.85%, 10/4/95 20,000
---------------------------------------------------------------------------
CS First Boston, Inc.
5.80%, 10/3/95 30,000
---------------------------------------------------------------------------
Lehman Government Securities, Inc.
5.85%, 10/4/95 10,000
---------------------------------------------------------------------------
Merrill Lynch Government Securities, Inc.
(held at Chemical Bank)
6.30%, 10/2/95 4,000
---------------------------------------------------------------------------
Nikko Securities International, Inc.
6.05%, 10/6/95 10,000
---------------------------------------------------------------------------
Nomura Securities International, Inc.
5.85%, 10/5/95 17,000
---------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS - 44.0%
(average maturity: 3 days) 91,000
---------------------------------------------------------------------------
</TABLE>
(2)
<PAGE> 4
Investors Cash Trust
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
September 30, 1995
(Value in thousands)
- -------------------------------------------------------------------------------
GOVERNMENT SECURITIES PORTFOLIO
<TABLE>
<CAPTION>
Value
<S> <C>
TOTAL INVESTMENTS - 97.1%
(average maturity: 42 days) $200,830
- -------------------------------------------------------------------------------
CASH AND OTHER ASSETS,
LESS LIABILITIES - 2.9% 5,927
- -------------------------------------------------------------------------------
NET ASSETS - 100% $206,757
===============================================================================
See accompanying Notes to Portfolios of Investments.
</TABLE>
(3)
<PAGE> 5
Investors Cash Trust
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
September 30, 1995
(Value in thousands)
- -------------------------------------------------------------------------------
TREASURY PORTFOLIO
<TABLE>
<CAPTION>
Value
<S> <C>
U.S. TREASURY NOTES - 16.3%
5.60% - 5.75%, 5/15/96
(average maturity: 227 days) $ 11,935
---------------------------------------------------------------------------
(b) REPURCHASE AGREEMENTS
(Dated 9/95, collateralized by U.S. Treasury Securities)
---------------------------------------------------------------------------
Bear, Stearns & Co., Inc.
5.70%, 10/3/95 3,500
---------------------------------------------------------------------------
Chase Manhattan Corporation
5.80%, 10/4/95 3,500
---------------------------------------------------------------------------
Donaldson, Lufkin & Jenrette Securities Corporation
5.77%, 10/2/95 3,500
---------------------------------------------------------------------------
First National Bank of Chicago
6.15%, 10/2/95 1,300
---------------------------------------------------------------------------
Goldman, Sachs & Co.
5.70%, 10/3/95 3,500
---------------------------------------------------------------------------
J.P. Morgan Securities Inc.
5.74%, 10/3/95 11,000
---------------------------------------------------------------------------
Lehman Government Securities Inc.
5.80%, 10/5/95 3,500
---------------------------------------------------------------------------
Merrill Lynch Government Securities Inc.
(held at Chemical Bank)
5.75%, 10/3/95 11,000
---------------------------------------------------------------------------
Nikko Securities International Inc.
5.80%, 10/4/95 3,500
---------------------------------------------------------------------------
Nomura Securities International, Inc.
5.71%, 10/3/95 11,000
---------------------------------------------------------------------------
UBS Securities Inc.
6.00%, 10/6/95 3,500
---------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS - 80.5%
(average maturity: 2 days) 58,800
---------------------------------------------------------------------------
TOTAL INVESTMENTS - 96.8%
(average maturity: 40 days) 70,735
---------------------------------------------------------------------------
CASH AND OTHER ASSETS,
LESS LIABILITIES - 3.2% 2,348
---------------------------------------------------------------------------
NET ASSETS - 100% $ 73,083
===========================================================================
</TABLE>
See accompanying Notes to Portfolios of Investments.
(4)
<PAGE> 6
Investors Cash Trust
NOTES TO PORTFOLIOS OF INVESTMENTS
Interest rates represent annualized yield to date of maturity, except for
variable rate securities described in Note (a). For each security, cost (for
financial reporting and federal income tax purposes) and carrying value are the
same. Likewise, carrying value approximates principal amount.
(a) Variable rate securities. The rates shown are the current rates at
September 30, 1995. The date shown represents the demand date or next
rate change date.
(b) Repurchase agreements are fully collateralized by U.S. Government
securities. All collateral is held at the Fund's custodian bank,
Investors Fiduciary Trust Company, or at subcustodian banks, as indicated.
The collateral is monitored daily by the Fund so that its market value
exceeds the carrying value of the repurchase agreement.
See accompanying Notes to Financial Statements.
(5)
<PAGE> 7
Investors Cash Trust
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995
(in thousands)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT
SECURITIES TREASURY
ASSETS PORTFOLIO PORTFOLIO
- --------------------------------------------------------------
<S> <C> <C>
Investments, at amortized cost:
Short-term securities $109,830 11,935
- --------------------------------------------------------------
Repurchase agreements 91,000 58,800
- --------------------------------------------------------------
Cash 6,252 2,438
- --------------------------------------------------------------
Interest receivable 580 249
- --------------------------------------------------------------
Total assets 207,662 73,422
- --------------------------------------------------------------
Liabilities and Net Assets
- --------------------------------------------------------------
Payable for:
Dividends 850 313
- --------------------------------------------------------------
Management fee 11 1
- --------------------------------------------------------------
Administrative services 18 6
- --------------------------------------------------------------
Other 26 19
- --------------------------------------------------------------
Total liabilities 905 339
- --------------------------------------------------------------
Net assets applicable to shares
outstanding $206,757 73,083
==============================================================
THE PRICING OF SHARES
- --------------------------------------------------------------
Shares outstanding, no par value 206,757 73,083
- --------------------------------------------------------------
Net asset value and
redemption price per share $1.00 1.00
==============================================================
</TABLE>
See accompanying Notes to Financial Statements.
(6)
<PAGE> 8
Investors Cash Trust
- -------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
Six months ended September 30, 1995
(in thousands)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT
SECURITIES TREASURY
PORTFOLIO PORTFOLIO
--------- ---------
<S> <C> <C>
Interest income $6,102 2,145
- ------------------------------------------------------------------------------
Expenses:
Management fee 153 55
- ------------------------------------------------------------------------------
Administrative service fee 102 36
- ------------------------------------------------------------------------------
Custodian and transfer agent
fees and related expenses 9 4
- ------------------------------------------------------------------------------
Registration costs 26 18
- ------------------------------------------------------------------------------
Professional fees 12 4
- ------------------------------------------------------------------------------
Reports to shareholders 4 1
- ------------------------------------------------------------------------------
Trustees' fees and other 16 8
- ------------------------------------------------------------------------------
322 126
- ------------------------------------------------------------------------------
Less expenses waived by
the investment manager (68) (35)
- ------------------------------------------------------------------------------
Total expenses waived
by the Portfolio 254 91
- ------------------------------------------------------------------------------
Net investment income $5,848 2,054
==============================================================================
</TABLE>
See accompanying Notes to Financial Statements.
(7)
<PAGE> 9
Investors Cash Trust
- ------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
(in thousands)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES TREASURY
PORTFOLIO PORTFOLIO
--------------------- -------------------------
SIX SIX
MONTHS YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
1995 1995 1995 1995
------------- --------- ------------- ---------
<S> <C> <C> <C> <C>
Operations:
Net investment income $ 5,848 6,514 2,054 1,810
- ---------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net
investment income (5,848) (6,514) (2,054) (1,810)
- ---------------------------------------------------------------------------------------------------------------------
Capital share transactions (dollar amounts and number
of shares are the same):
Shares sold 170,544 142,655 86,524 139,626
- ---------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of dividends 5,631 5,997 2,054 1,560
- ---------------------------------------------------------------------------------------------------------------------
176,175 148,652 88,578 141,186
Less shares redeemed 145,442 102,239 80,884 104,480
- ---------------------------------------------------------------------------------------------------------------------
Net increase from capital share transactions
and total increase in net assets 30,733 46,413 7,694 36,706
- ---------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 176,024 129,611 65,389 28,683
- ---------------------------------------------------------------------------------------------------------------------
End of period $206,757 176,024 73,083 65,389
=====================================================================================================================
</TABLE>
See accompanying Notes to Financial Statements.
8
<PAGE> 10
Investors Cash Trust
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF THE FUND
The Fund currently offers two series of shares (Portfolios) -- the Government
Securities Portfolio and the Treasury Portfolio. The Fund is an open-end
management investment company organized as a business trust under the laws of
Massachusetts.
2. SIGNIFICANT ACCOUNTING POLICIES
INVESTMENT VALUATION
Investments are stated at amortized cost, which approximates market value. In
the event that a deviation of 1/2 of 1% or more exists between a Portfolio's
$1.00 per share net asset value, calculated at amortized cost, and the net
asset value calculated by reference to market-based values, or if there is any
other deviation that the Board of Trustees believes would result in material
dilution to shareholders or purchasers, the Board of Trustees will promptly
consider what action should be initiated.
INVESTMENT TRANSACTIONS AND INTEREST INCOME
Investment transactions are accounted for on the trade date (date the order
to buy or sell is executed). Interest income is recorded on the accrual basis
and includes amortization of premium and discount on investments.
EXPENSES
Expenses arising in connection with a Portfolio are allocated to that
Portfolio. Other Fund expenses are allocated between the Portfolios in
proportion to their relative net assets.
FUND SHARE VALUATION AND DIVIDENDS TO SHAREHOLDERS
Fund shares are sold and redeemed on a continuous basis at net asset value. On
each day that the New York Stock Exchange is open for trading, each Portfolio
determines its net asset value per share at 11:00 a.m., 1:00 p.m. and 3:00 p.m.
Chicago time by dividing the total value of the Portfolio's investments and
other assets, less liabilities, by the number of Portfolio shares outstanding.
Each Portfolio declares a daily dividend, equal to its net investment income
for that day, payable monthly. Net investment income consists of all interest
income plus (minus) all realized gains (losses) on portfolio securites, minus
all expenses of the Portfolio.
FEDERAL INCOME TAXES
Each Portfolio has complied with the special provisions of the Internal Revenue
Code available to investment companies during the six months ended September
30, 1995.
3. TRANSACTIONS WITH AFFILIATES
MANAGEMENT AGREEMENT
The Fund has a management agreement with Kemper Financial Services, Inc. (KFS)
and pays a management fee at an annual rate of .15 of 1% of average daily net
assets. During the six months ended September 30, 1995, the Fund incurred
management fees of $208,000.
ADMINISTRATIVE SERVICES AGREEMENT
The Fund also has an administrative services agreement with Kemper
Distribution, Inc. (KDI). For its services as primary administrator, the Fund
pays KDI an annual fee of .10% of average daily net assets. For the six months
ended September 30, 1995, the Fund incurred administrative services fees of
$138,000. KDI has related service agreements with various firms to provide
cash management and other services for Fund shareholders. KDI pays these firms
at an annual rate ranging between .05% and .10% of average daily net assets.
During the six months ended September 30, 1995, KDI paid fees of $69,000 to
various firms pursuant to service agreements, including $47,000 paid to
affiliated dealers.
SHAREHOLDER SERVICES AGREEMENT
Pursuant to a service agreement with the Fund's transfer agent, Kemper Service
Company (KSvC) is the shareholder service agent of the Fund. During the six
months ended September 30, 1995, the transfer agent remitted shareholder
services fees to KSvC of $2,000.
(9)
<PAGE> 11
Investors Cash Trust
OFFICERS AND TRUSTEES
Certain officers or trustees of the Fund are also officers or directors of KFS.
During the six months ended September 30, 1995, the Fund made no payments to
its officers and incurred trustees' fees of $5,000 to independent trustees.
EXPENSE WAIVER
KFS has agreed to temporarily waive its management fee and reimburse or pay
operating expenses of each Portfolio to the extent that they exceed .25% of
average daily net assets of such Portfolio on an annual basis. Under this
agreement, KFS waived $103,000 of expenses during the six months ended
September 30, 1995.
(10)
<PAGE> 12
Investors Cash Trust
- ------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES PORTFOLIO SIX MONTHS
ENDED YEAR ENDED MARCH 31,
SEPT. 30, 1995 1995 1994 1993 1992
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 1.00 1.00 1.00 1.00 1.00
- ----------------------------------------------------------------------------------------------------------
Net investment income and dividends declared .03 .05 .03 .03 .05
- ----------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00 1.00 1.00
- ----------------------------------------------------------------------------------------------------------
TOTAL RETURN (%): 2.91 4.74 3.00 3.12 5.11
- ----------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (%):
Expenses after expense absorption .25 .25 .25 .38 .40
- ----------------------------------------------------------------------------------------------------------
Net investment income 5.70 4.72 2.96 3.13 4.74
- ----------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS (%):
Expenses .31 .33 .43 .56 .51
- ----------------------------------------------------------------------------------------------------------
Net investment income 5.64 4.64 2.78 2.95 4.63
- ----------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $206,757 176,024 129,611 129,025 104,959
==========================================================================================================
<CAPTION>
TREASURY PORTFOLIO SIX MONTHS DEC. 17, 1991
ENDED YEAR ENDED MARCH 31, TO
SEPT. 30, 1995 1995 1994 1993 MARCH 31, 1992
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 1.00 1.00 1.00 1.00 1.00
- -----------------------------------------------------------------------------------------------------------
Net investment income and dividends declared .03 .05 .03 .03 .01
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00 1.00 1.00
- -----------------------------------------------------------------------------------------------------------
TOTAL RETURN (%): 2.87 4.69 2.96 3.09 1.10
- -----------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (%):
Expenses after expense absorption .25 .25 .23 .37 .40
- -----------------------------------------------------------------------------------------------------------
Net investment income 5.63 4.76 2.92 2.97 3.76
- -----------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS (%):
Expenses .35 .39 .61 .78 .70
- -----------------------------------------------------------------------------------------------------------
Net investment income 5.53 4.62 2.54 2.56 3.46
- -----------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $ 73,083 65,389 28,683 20,275 4,723
===========================================================================================================
</TABLE>
NOTE:
KFS has agreed to temporarily waive its management fee and reimburse or pay
certain operating expenses. The Other Ratios to Average Net Assets are computed
without this expense waiver or reimbursement. Ratios have been determined on an
annualized basis. Total return is not annualized.
(11)
<PAGE> 13
SPECIAL SHAREHOLDERS MEETING
On September 19, 1995 the results of the proxy solicitation were announced at a
joint special shareholders meeting. Investors Cash Trust shareholders were
asked to vote on three separate issues: election of nine Trustees to the Board
of Trustees, ratification of Ernst & Young LLP as independent auditors and
approval of a new investment management agreement with Kemper Financial
Services, Inc., or its successor on the same terms as the current agreement.
We are pleased to report that all nominees were elected and all other items
were approved. Following are the results for each issue:
1)Election of Trustees
<TABLE>
<CAPTION>
For Withheld
<S> <C> <C>
David W. Belin 220,198,162 0
Lewis A. Burnham 220,198,162 0
Donald L. Dunaway 220,198,162 0
Robert B. Hoffman 220,198,162 0
Donald R. Jones 220,198,162 0
David B. Mathis 220,198,162 0
Shirley D. Peterson 220,198,162 0
William P. Sommers 220,198,162 0
Stephen B. Timbers 220,198,162 0
</TABLE>
2)Ratification of the selection of Ernst & Young LLP as independent auditors
for the fund
<TABLE>
<CAPTION>
For Against Abstain
<S> <C> <C>
211,095,463 96,656 7,996,043
</TABLE>
3)Approval of new investment management agreement
<TABLE>
<CAPTION>
Government Securities Portfolio
For Against Abstain
<S> <C> <C>
167,007,862 53,975 0
</TABLE>
Treasury Portfolio
<TABLE>
<CAPTION>
For Against Abstain
<S> <C> <C>
52,120,863 0 5,460
</TABLE>
(12)
<PAGE> 14
INVESTMENT MANAGER
Kemper Financial Services, Inc.
PRINCIPAL UNDERWRITER
Kemper Distributors, Inc.
120 South LaSalle Street
Chicago, IL 60603
This report is not to be distributed unless preceded or accompanied by a
prospectus.
1005510 11/95
