INVESTORS CASH TRUST
N-30D, 1995-05-25
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<PAGE>   1



                             INVESTORS CASH TRUST


                        ANNUAL REPORT TO SHAREHOLDERS


                                MARCH 31, 1995




        This report is not to be distributed unless preceded or accompanied by a
        prospectus.
<PAGE>   2


DEAR SHAREHOLDERS:

We are pleased to submit to you the Investors Cash Trust annual report for the
year ended March 31, 1995.  Each of the Fund's Portfolios, Government
Securities and Treasury, registered excellent performance during this period.
Please take a moment to review the Portfolio Results which appear at the end of
this letter.

In your Fund's semi-annual report dated September 30, 1994, we indicated that
an upward trend in short-term rates was anticipated.  The economy has
strengthened, and the Federal Reserve has validated our outlook by tightening
monetary conditions.  As a result, we feel short-term interest rates are at
attractive levels and may trend higher.

In this context, the role of Investors Cash Trust as an integral component of
your investment plan will take on additional importance.  Your Fund has
continued to meet its investment objective by owning high quality investments
that provide stability of principal, especially during periods of market
uncertainty, and competitive money market dividends.

We look forward to meeting the challenges which the economy and the financial
markets may present in the months ahead.  As always, we are dedicated to
providing our shareholders with excellent investment results.

Thank you for your investment in Investors Cash Trust.  We look forward to
serving your investment needs in the years to come.

Sincerely,


Frank J. Rachwalski
Frank J. Rachwalski
Vice President and Portfolio Manager
April 5, 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 year ended March 31, 1995, the Fund's two Portfolios had the following
net annualized yields:

The Government Securities Portfolio had a net annualized yield of 4.64%

The Treasury Portfolio had a net annualized yield of 4.59%

An investment in the Fund 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 year ended March 31, 1995 is the
annualized sum of the daily dividend rates for the period.  Yields are
historical and do not represent future yields, which will fluctuate.
<PAGE>   3
  Investors Cash Trust

  PORTFOLIO OF INVESTMENTS
  March 31, 1995
  (Value in thousands)

<TABLE>
<CAPTION>
  GOVERNMENT SECURITIES PORTFOLIO
                                                                  Value
<S>                                                            <C>
    Short-Term Notes
    ---------------------------------------------------------------------
    Federal Farm Credit Banks
      6.33%, 6/01/95                                             $  4,999
    ---------------------------------------------------------------------
    Federal Home Loan Mortgage Corporation
      5.95%-6.10%, 4/07/95-6/19/95                                 53,653
(a)   6.14%, 5/15/95                                                2,998
    ---------------------------------------------------------------------
    Federal National Mortgage Association
(a)   6.37%-6.60%, 4/01/95                                          6,999
      5.92%, 4/05/95-4/13/95                                       25,252
    ---------------------------------------------------------------------
    Total Short-Term Notes-53.3%
    (average maturity: 28 days)                                    93,901
    ---------------------------------------------------------------------

    Repurchase Agreements
    Bear Stearns Companies Inc.
    ---------------------------------------------------------------------
      Dated 3/28/95, collateralized by Federal Home
      Loan Mortgage Corporation and Federal
      National Mortgage Association Securities
        6.15%, 4/04/95                                             14,997
    ---------------------------------------------------------------------
    Merrill Lynch Government Securities Inc.
    ---------------------------------------------------------------------
      Dated 3/30/95, collateralized by Federal National
      Mortgage Association Securities
        6.10%, 4/06/95                                             18,000
    ---------------------------------------------------------------------
    Morgan Stanley & Co. Incorporated
    ---------------------------------------------------------------------
      Dated 3/27/95, collateralized by Federal Home
      Loan Mortgage Corporation
        6.04%, 4/03/95                                             24,000
    ---------------------------------------------------------------------
    Nomura Securities International Inc.
    ---------------------------------------------------------------------
      Dated 3/29/95, collateralized by Federal National
      Mortgage Association Securities
        6.18%, 4/05/95                                             25,000
    ---------------------------------------------------------------------

    Total Repurchase Agreements-46.6%
    (average maturity: 4 days)                                     81,997
    ---------------------------------------------------------------------

    Total Investments-99.9%
    (average maturity: 17 days)                                   175,898
    ---------------------------------------------------------------------
    Cash and Other Assets,
    Less Liabilities-.1%                                              126
    ---------------------------------------------------------------------
    Net Assets-100%                                              $176,024
    =====================================================================
</TABLE>

  See accompanying Notes to Portfolios of Investments.



                                      (2)

<PAGE>   4
Investors Cash Trust

PORTFOLIO OF INVESTMENTS
March 31, 1995
(Value in thousands)

TREASURY PORTFOLIO

<TABLE>
<CAPTION>
                                                                          VALUE

<S>                                                                    <C>
U.S. TREASURY BILLS-56.4%
(average maturity: 21 days)
   5.93%-6.03%, 4/20/95-5/25/95                                       $ 36,885
------------------------------------------------------------------------------

REPURCHASE AGREEMENTS
------------------------------------------------------------------------------
First National Bank of Chicago
------------------------------------------------------------------------------
   Dated 3/23/95, collateralized by U.S. Treasury Bonds
      5.95%, 4/25/95                                                     6,700
------------------------------------------------------------------------------
Goldman, Sachs & Co.
------------------------------------------------------------------------------
   Dated 3/29/95, collateralized by U.S. Treasury Notes
      6.05%, 4/05/95                                                     8,500
------------------------------------------------------------------------------
J.P. Morgan Securities Inc.
------------------------------------------------------------------------------
   Dated 3/31/95, collateralized by U.S. Treasury Notes
      6.15%, 4/03/95                                                     9,900
------------------------------------------------------------------------------
Lehman Government Securities, Inc.
------------------------------------------------------------------------------
   Dated 3/31/95, collateralized by U.S. Treasury Notes
      6.20%, 4/03/95                                                     9,900
------------------------------------------------------------------------------
Merrill Lynch Government Securities Inc.
------------------------------------------------------------------------------
   Dated 3/29/95, collateralized by U.S. Treasury Notes
      6.05%, 4/05/95                                                     9,000
------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated
------------------------------------------------------------------------------
   Dated 3/28/95, collateralized by U.S. Treasury Bonds
      6.00%, 4/04/95                                                     9,700 
------------------------------------------------------------------------------
Nikko Securities International
------------------------------------------------------------------------------
   Dated 3/31/95, collateralized by U.S. Treasury Notes
      6.15%, 4/03/95                                                     9,900
------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS-97.3%
(average maturity: 5 days)                                              63,600
------------------------------------------------------------------------------
TOTAL INVESTMENTS-153.7%
(average maturity: 11 days)                                            100,485
------------------------------------------------------------------------------
LIABILITIES (INCLUDING PAYABLE FOR
SECURITIES PURCHASED),
LESS CASH AND OTHER ASSETS-(53.7%)                                     (35,096)
------------------------------------------------------------------------------
NET ASSETS-100%                                                       $ 65,389
==============================================================================
</TABLE>

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
    March 31, 1995. The date shown represents the demand date or next interest
    rate change date.

See accompanying Notes to Financial Statements.

                                     (3)

<PAGE>   5
Investors Cash Trust

REPORT OF INDEPENDENT AUDITORS


THE BOARD OF TRUSTEES AND SHAREHOLDERS
INVESTORS CASH TRUST


We have audited the accompanying statement of assets and liabilities, including
the portfolios of investments, of the Government Securities and the Treasury
Portfolios, comprising Investors Cash Trust, as of March 31, 1995, and the
related statements of operations for the year then ended and changes in net
assets for each of the two years in the period then ended, and the financial
highlights for each of the fiscal periods since 1991 in the Government
Securities Portfolio and 1992 in the Treasury Portfolio. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
March 31, 1995, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.


In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the Portfolios comprising Investors Cash Trust at March 31, 1995, the
results of their operations for the year then ended, the changes in their net
assets for each of the two years in the period then ended, and the financial
highlights for each of the fiscal periods referred to above, in conformity with
generally accepted accounting principles.


                                                             ERNST & YOUNG LLP


Chicago, Illinois
April 28, 1995


                                     (4)

<PAGE>   6
Investors Cash Trust


STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995
(in thousands)

<TABLE>
<CAPTION>

                                        Government              
                                        Securities              Treasury
Assets                                  Portfolio               Portfolio
-------------------------------------------------------------------------
<S>                                     <C>                     <C>

Investments, at amortized cost:
  Short-term securities                 $ 93,901                 36,885
-------------------------------------------------------------------------
  Repurchase agreements                   81,997                 63,600
-------------------------------------------------------------------------
Cash                                         739                    111
-------------------------------------------------------------------------
Interest receivable                          264                     30
-------------------------------------------------------------------------
    Total assets                         176,901                100,626
-------------------------------------------------------------------------

Liabilities and Net Assets
-------------------------------------------------------------------------
Payable for:
  Securities purchased                        --                 34,903
-------------------------------------------------------------------------
  Dividends                                  827                    314
-------------------------------------------------------------------------
  Management fee                               7                     --
-------------------------------------------------------------------------
  Administrative fee                          14                      4
-------------------------------------------------------------------------
  Other                                       29                     16
-------------------------------------------------------------------------
    Total liabilities                        877                 35,237
-------------------------------------------------------------------------
Net assets applicable to shares
outstanding                             $176,024                 65,389
=========================================================================

The Pricing of Shares
-------------------------------------------------------------------------
Shares outstanding, no par value
(unlimited shares authorized)            176,024                 65,389
-------------------------------------------------------------------------
Net asset value and
redemption price per share                 $1.00                   1.00
=========================================================================

</TABLE>


See accompanying Notes to Financial Statements.



                                     (5)





<PAGE>   7
Investors Cash Trust

STATEMENT OF OPERATIONS
Year ended March 31, 1995
(in thousands)

<TABLE>
<CAPTION>

                                   Government 
                                   Securities     Treasury 
                                    Portfolio     Portfolio 
                                   ----------     ---------
<S>                                  <C>            <C>
Interest income                       $6,859         1,905
-----------------------------------------------------------
Expenses:
  Management fee                         207            57
-----------------------------------------------------------
  Administrative fee                     138            38
-----------------------------------------------------------
  Custodian and transfer agent
  fees and related expenses               15             6
-----------------------------------------------------------
  Registration costs                      34            23
-----------------------------------------------------------
  Professional fees                       34             9
-----------------------------------------------------------
  Reports to shareholders                  8             2
-----------------------------------------------------------
  Trustees' fees and other                26            13
-----------------------------------------------------------
                                         462           148
-----------------------------------------------------------
  Less expenses absorbed by
  the investment manager                (117)          (53)
-----------------------------------------------------------
    Total expenses absorbed by
    the Portfolio                        345            95
-----------------------------------------------------------
Net investment income                 $6,514         1,810
===========================================================

</TABLE>

See accompanying Notes to Financial Statements.


                                     (6)

<PAGE>   8
Investors Cash Trust

STATEMENT OF CHANGES IN NET ASSETS
Years ended March 31, 1995 and 1994
(in thousands)

<TABLE>
<CAPTION>
                                                    Government Securities        Treasury
                                                         Portfolio               Portfolio
                                                    --------------------------------------------
                                                      1995        1994        1995        1994
                                                    --------------------------------------------
<S>                                                 <C>          <C>         <C>         <C>
Operations:
     Net investment income                          $  6,514       4,072       1,810         779
------------------------------------------------------------------------------------------------
Dividends to shareholders from 
net investment income                                 (6,514)     (4,072)     (1,810)       (779)
------------------------------------------------------------------------------------------------
Capital share transactions (dollar 
amounts and number of shares are the same):
     Shares sold                                     142,655     130,898     139,626     115,545
------------------------------------------------------------------------------------------------
     Shares issued in reinvestment of dividends        5,997       3,945       1,560         728
------------------------------------------------------------------------------------------------
                                                     148,652     134,843     141,186     116,273

     Less shares redeemed                            102,239     134,257     104,480     107,865
------------------------------------------------------------------------------------------------
Net increase from capital share transactions 
and total increase in net assets                      46,413         586      36,706       8,408
------------------------------------------------------------------------------------------------
Net assets:
Beginning of year                                    129,611     129,025      28,683      20,275
------------------------------------------------------------------------------------------------
End of year                                         $176,024     129,611      65,389      28,683
================================================================================================
</TABLE>

See accompanying Notes to Financial Statements.

                                     (7)

<PAGE>   9
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.

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 a 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.

REPURCHASE AGREEMENTS

Repurchase agreements are fully collateralized by U.S. Treasury or Government
agency securities. All collateral is held at the Fund's custodian bank and is
monitored daily by the Fund so that its market value exceeds the carrying value
of the repurchase agreement.

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 securities, 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 and therefore no federal income tax
provision is required.

3.  TRANSACTIONS WITH AFFILIATES

MANAGEMENT AGREEMENT

The Fund has a management agreement with Kemper Financial Services, Inc. (KFS).
For management services and facilities furnished, the Fund pays a management
fee at an annual rate of .15% of average daily net assets. During the year
ended March 31, 1995, the Fund incurred management fees of $264,000.

ADMINISTRATIVE AGREEMENT

The Fund also has an administrative services agreement with Kemper
Distributors, Inc. (KDI). (Before February 1, 1995, KFS was the administrator.)
For its services as primary administrator, the Fund pays KDI an annual fee of
.10% of average daily net assets. For the year ended March 31, 1995, the Fund
incurred administrative fees of $176,000. KDI has related service agreements
with various firms to provide cash management and other services for Fund
shareholders. KDI pays these firms at annual rate ranging between .05% and .10%
of average daily net assets. During the year ended March 31, 1995, KDI (and KFS
as predecessor to KDI) paid fees of $88,000 to various firms pursuant to
service agreements, including $68,000 paid to affiliated dealers.


                                     (8)

<PAGE>   10
Investors Cash Trust

CUSTODIAN AND TRANSFER AGENT AGREEMENTS
The Fund has a custodian and a transfer agent agreement with Investors
Fiduciary Trust Company (IFTC), which was 50% owned by KFS until January 31,
1995 when KFS completed the sale of IFTC to a third party. During the year
ended March 31, 1995, the Fund incurred custodian and transfer agent fees of
$17,000 (excluding related expenses). Pursuant to a services agreement with
IFTC, Kemper Service Company (KSvC), an affiliate of KFS, is the Shareholder
Service Agent of the Fund. During the year ended March 31, 1995, IFTC remitted
shareholder service fees of $2,000 to KSvC.

OFFICERS AND TRUSTEES
Certain officers or trustees of the Fund are also officers or directors of KFS.
During the six months ended March 31, 1995, the Fund made no payments to its
officers and incurred trustees' fees of $11,000 to independent trustees.

EXPENSE ABSORPTION
KFS agreed to temporarily absorb certain of each Portfolio's operating expenses
to the extent that they exceed .25% of average daily net assets of such
Portfolio on an annual basis. Under this arrangement, KFS absorbed $170,000 of
expenses during the year ended March 31, 1995.


                                     (9)
<PAGE>   11
Investors Cash Trust


FINANCIAL HIGHLIGHTS



GOVERNMENT SECURITIES PORTFOLIO


<TABLE>
<CAPTION>
                                                                                                                    Sept. 27, 1990
                                                                       Year ended March 31,                               to
                                                        1995            1994            1993            1992        March 31, 1991
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                   <C>              <C>             <C>            <C>              <C>

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year                 $   1.00             1.00            1.00             1.00            1.00
----------------------------------------------------------------------------------------------------------------------------------
Net investment income and dividends declared            .05              .03             .03              .05             .03
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year                       $   1.00             1.00            1.00             1.00            1.00
----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)                                       4.74             3.00            3.12             5.11            3.62
----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (%):
Expenses after expense absorption                       .25              .25             .38              .40             .40
----------------------------------------------------------------------------------------------------------------------------------
Net investment income                                  4.72             2.96            3.13             4.74            6.68
----------------------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS (%):
Expenses                                                .33              .43             .56              .51            1.12
----------------------------------------------------------------------------------------------------------------------------------
Net investment income                                  4.64             2.78            2.95             4.63            5.96
----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of year (in thousands)           $176,024          129,611         129,025          104,959          50,031
==================================================================================================================================


</TABLE>


TREASURY PORTFOLIO


<TABLE>   
<CAPTION> 
                                                                                                         Dec. 17, 1991    
                                                              Year ended March 31,                             to
                                                    1995              1994              1993             March 31, 1992
-----------------------------------------------------------------------------------------------------------------------
<S>                                               <C>               <C>                <C>                  <C>     
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year               $  1.00              1.00              1.00                  1.00
-----------------------------------------------------------------------------------------------------------------------
Net investment income and dividends declared         .05               .03               .03                   .01
-----------------------------------------------------------------------------------------------------------------------
Net asset value, end of year                     $  1.00              1.00              1.00                  1.00
-----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%):                                   4.69              2.96              3.09                  1.10
-----------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS(%):
Expenses after expense absorption                    .25               .23               .37                   .40
-----------------------------------------------------------------------------------------------------------------------
Net investment income                               4.76              2.92              2.97                  3.76
-----------------------------------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS (%):
Expenses                                             .39               .61               .78                   .70
-----------------------------------------------------------------------------------------------------------------------
Net investment income                               4.62              2.54              2.56                  3.46
-----------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of year (in thousands)         $65,389            28,683            20,275                 4,723
=======================================================================================================================


</TABLE>

NOTE:

KFS has agreed to temporarily absorb certain operating expenses. The Other
Ratios to Average Net Assets are computed without this expense absorption.
Ratios have been determined on an annualized basis. Total return is not
annualized.


                                     (10)

<PAGE>   12
                              INVESTMENT MANAGER
                          Kemper Financial Services

                            PRINCIPAL UNDERWRITER
                          Kemper Distributors, Inc.
                           120 South LaSalle Street
                              Chicago, IL 60603
                                      




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