<PAGE> 1
INVESTORS CASH TRUST
SEMIANNUAL REPORT TO SHAREHOLDERS
SEPTEMBER 30, 1996
<PAGE> 2
DEAR SHAREHOLDERS:
We are pleased to provide you with the Investors Cash Trust semiannual report
for the six-month period ended September 30, 1996.
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
Currently, overall economic activity is reported to be generally favorable and
expanding moderately. We anticipate no material changes in the pace of growth
or inflationary pressures for the foreseeable future.
Nevertheless, the economy should continue to show above trend growth, and the
Federal Reserve should become increasingly concerned about the prospects for
inflation and eventually raise interest rates.
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 11, 1996
Frank Rachwalski is Senior Vice President of Zurich Kemper Investments, 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.
(1)
<PAGE> 3
PORTFOLIO RESULTS
For the six months ended September 30, 1996, the Fund's two Portfolios had the
following net annualized yields:
The Government Securities Portfolio had a net annualized yield of 5.16%.
The Treasury Portfolio had a net annualized yield of 5.03%.
NOTES
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.
Each Portfolio's net annualized yield for the six months ended September 30,
1996, is the annualized sum of the daily dividend rates for the period. Yields
are historical and do not represent future yields, which will fluctuate.
The views expressed in this report reflect those of the portfolio manager only
through the end of the period of the report as stated above. The manager's
views are subject to change at any time, based on market and other conditions.
(2)
<PAGE> 4
Investors Cash Trust
----------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
September 30, 1996
(Value in thousands)
============================================================================
GOVERNMENT SECURITIES PORTFOLIO
<TABLE>
<S> <C>
U.S. TREASURY NOTES - .2% Value
5.74%, 4/30/97
(average maturity: 211 days) $ 502
----------------------------------------------------------------------------
SHORT-TERM NOTES
----------------------------------------------------------------------------
Federal Home Loan Bank
(a) 5.63%, 11/2/96 3,101
5.70% - 6.05%, 10/1/96-9/18/97 28,600
----------------------------------------------------------------------------
Federal Home Loan Mortgage Corporation
5.32% - 5.35%, 10/10/96-9/24/97 15,979
----------------------------------------------------------------------------
Federal National Mortgage Association
(a) 5.52%, 10/1/96 7,033
5.85%, 10/7/96 3,000
----------------------------------------------------------------------------
TOTAL SHORT-TERM NOTES - 23.9%
(average maturity: 13 days) 57,713
----------------------------------------------------------------------------
(b) REPURCHASE AGREEMENTS
(Dated 7/96 - 9/96, collateralized by Federal Home Loan Mortgage
Corporation, Federal National Mortgage Association, Government
National Mortgage Association and U.S. Treasury securities)
----------------------------------------------------------------------------
Bear, Stearns & Co. Inc.
5.40% - 5.43%, 10/2/96 - 10/23/96 11,000
----------------------------------------------------------------------------
CS First Boston Inc.
5.28% - 5.30%, 10/3/96 - 10/7/96 10,500
----------------------------------------------------------------------------
Chase Securities, Inc.
5.36%, 10/16/96 10,000
----------------------------------------------------------------------------
Donaldson, Lufkin & Jenrette Securities Corporation
5.35% - 5.38%, 10/3/96 - 10/15/96 20,500
----------------------------------------------------------------------------
Dresdner Security (USA) Inc.
5.23% - 5.32%, 10/7/96 - 10/16/96 11,000
----------------------------------------------------------------------------
</TABLE>
(3)
<PAGE> 5
Investors Cash Trust
- ----------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
September 30, 1996
(Value in thousands)
============================================================================
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES PORTFOLIO
Value
<S> <C>
Goldman, Sachs & Co.
5.24%, 10/7/96 $ 7,000
- ----------------------------------------------------------------------------
Lehman Government Securities Inc.
5.27% - 5.43%, 10/2/96 - 10/23/96 11,000
- ----------------------------------------------------------------------------
Merrill Lynch Government Securities, Inc.
(held at The Chase Manhattan Bank, N.A.)
5.36%, 10/16/96 7,000
- ----------------------------------------------------------------------------
J. P. Morgan Securities Inc.
5.22%, 10/2/96 10,000
- ----------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated
5.28% - 5.36%, 10/4/96 - 10/30/96 30,200
- ----------------------------------------------------------------------------
Nikko Securities Co. International, Inc.
5.38%, 10/9/96 20,000
- ----------------------------------------------------------------------------
Nomura Securities International, Inc.
5.41% - 5.52%, 10/23/96 - 11/4/96 32,000
- ----------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS - 74.7%
(average maturity: 12 days) 180,200
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS - 98.8%
(average maturity: 13 days) 238,415
- ----------------------------------------------------------------------------
CASH AND OTHER ASSETS, LESS LIABILITIES - 1.2% 2,957
- ----------------------------------------------------------------------------
NET ASSETS - 100% $241,372
============================================================================
</TABLE>
See accompanying Notes to Portfolios of Investments.
(4)
<PAGE> 6
<TABLE>
<CAPTION>
Investors Cash Trust
- ---------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
September 30, 1996
(Value in thousands)
===================================================================================================
TREASURY PORTFOLIO
Value
<S> <C>
U.S. TREASURY NOTES - 17.5%
5.33% - 5.75%, 4/30/97 - 5/1/97
(average maturity: 212 days) $15,045
- ---------------------------------------------------------------------------------------------------
(b) REPURCHASE AGREEMENTS
(Dated 8/96 - 9/96, collateralized by U.S. Treasury securities)
- ---------------------------------------------------------------------------------------------------
CS First Boston Inc.
5.20% - 5.30%, 10/7/96 - 11/6/96 4,000
- ---------------------------------------------------------------------------------------------------
Chase Securities, Inc.
5.25%, 10/1/96 4,200
- ---------------------------------------------------------------------------------------------------
Donaldson, Lufkin & Jenrette Securities Corporation
5.25%, 11/6/96 4,200
- ---------------------------------------------------------------------------------------------------
Dresdner Security (USA) Inc.
5.23% - 5.33%, 10/7/96 - 10/16/96 12,500
- ---------------------------------------------------------------------------------------------------
Goldman, Sachs & Co.
5.25% - 5.36%, 10/7/96 - 11/13/96 13,000
- ---------------------------------------------------------------------------------------------------
Lehman Government Securities Inc.
5.29%, 10/16/96 4,000
- ---------------------------------------------------------------------------------------------------
Merrill Lynch Government Securities, Inc.
(held at The Chase Manhattan Bank, N.A.)
5.15% - 5.20%, 10/2/96 - 10/7/96 11,000
- ---------------------------------------------------------------------------------------------------
J. P. Morgan Securities Inc.
5.20%, 10/7/96 4,000
- ---------------------------------------------------------------------------------------------------
Morgan Stanley & Co. Incorporated
5.23%, 10/2/96 4,000
- ---------------------------------------------------------------------------------------------------
Nikko Securities Co. International, Inc.
5.25%, 10/3/96 4,200
- ---------------------------------------------------------------------------------------------------
Nomura Securities International, Inc.
5.23%, 10/7/96 4,000
- ---------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS - 80.6%
(average maturity: 10 days) 69,100
- ---------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 98.1%
(average maturity: 43 days) 84,145
- ---------------------------------------------------------------------------------------------------
CASH AND OTHER ASSETS, LESS LIABILITIES - 1.9% 1,650
- ---------------------------------------------------------------------------------------------------
NET ASSETS - 100% $85,795
===================================================================================================
</TABLE>
See accompanying Notes to Portfolios of Investments.
(5)
<PAGE> 7
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, 1996. The dates shown represent the demand date or next
interest 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.
(6)
<PAGE> 8
Investors Cash Trust
- --------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1996
(in thousands)
<TABLE>
<CAPTION>
==========================================================================
Government
Securities Treasury
Assets Portfolio Portfolio
- --------------------------------------------------------------------------
<S> <C> <C>
Investments, at amortized cost:
Short-term securities $ 58,215 15,045
- --------------------------------------------------------------------------
Repurchase agreements 180,200 69,100
- --------------------------------------------------------------------------
Cash 3,272 1,874
- --------------------------------------------------------------------------
Interest receivable 606 126
- --------------------------------------------------------------------------
Total assets 242,293 86,145
- --------------------------------------------------------------------------
LIABILITIES AND NET ASSETS
- --------------------------------------------------------------------------
Payable for:
Dividends 863 322
- --------------------------------------------------------------------------
Management fee 18 3
- --------------------------------------------------------------------------
Administrative services fee 19 7
- --------------------------------------------------------------------------
Other 21 18
- --------------------------------------------------------------------------
Total liabilities 921 350
- --------------------------------------------------------------------------
Net assets applicable to shares
outstanding $241,372 85,795
==========================================================================
THE PRICING OF SHARES
- --------------------------------------------------------------------------
Shares outstanding 241,372 85,795
- --------------------------------------------------------------------------
Net asset value and
redemption price per share $1.00 1.00
==========================================================================
</TABLE>
See accompanying Notes to Financial Statements.
(7)
<PAGE> 9
Investors Cash Trust
- -------------------------------------------------------------------
STATEMENT OF OPERATIONS
Six months ended September 30, 1996
(in thousands)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
GOVERNMENT
SECURITIES TREASURY
PORTFOLIO PORTFOLIO
---------- ---------
<S> <C> <C>
Interest income $6,172 2,428
- -------------------------------------------------------------------
Expenses:
Management fee 173 70
- -------------------------------------------------------------------
Administrative services fee 114 46
- -------------------------------------------------------------------
Custodian and transfer agent
fees and related expenses 16 6
- -------------------------------------------------------------------
Registration costs 30 29
- -------------------------------------------------------------------
Professional fees 13 6
- -------------------------------------------------------------------
Reports to shareholders 5 3
- -------------------------------------------------------------------
Trustees' fees and other 8 6
- -------------------------------------------------------------------
Total expenses before
expense waiver 359 166
- -------------------------------------------------------------------
Less expenses waived by
the investment manager (74) (51)
- -------------------------------------------------------------------
Total expenses absorbed
by the Portfolio 285 115
- -------------------------------------------------------------------
Net investment income $5,887 2,313
- -------------------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
(8)
<PAGE> 10
<TABLE>
<CAPTION>
Investors Cash Trust
- ------------------------------------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
(in thousands)
- ------------------------------------------------------------------------------------------------------------
GOVERNMENT SECURITIES TREASURY
PORTFOLIO PORTFOLIO
----------------------------------------------------
Six Six
months Year months Year
ended ended ended ended
September 30, March 31, September 30, March 31,
1996 1996 1996 1996
----------------------------------------------------
<S> <C> <C> <C> <C>
Operations:
Net investment income $ 5,887 11,804 2,313 4,409
- ------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net
investment income (5,887) (11,804) (2,313) (4,409)
- ------------------------------------------------------------------------------------------------------------
Capital share transactions (dollar amounts and number
of shares are the same):
Shares sold 227,705 400,548 39,158 206,789
- ------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of dividends 5,763 11,349 2,422 4,279
- ------------------------------------------------------------------------------------------------------------
233,468 411,897 41,580 211,068
Shares redeemed (223,040) (356,977) (57,361) (174,881)
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) from capital share transactions
and total increase (decrease) in net assets 10,428 54,920 (15,781) 36,187
- ------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 230,944 176,024 101,576 65,389
- ------------------------------------------------------------------------------------------------------------
End of period $241,372 230,944 85,795 101,576
============================================================================================================
</TABLE>
See accompanying Notes to Financial Statements.
(9)
<PAGE> 11
Investors Cash Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. DESCRIPTION OF THE FUND
Investors Cash Trust is an open-end management investment company organized as
a business trust under the laws of Massachusetts. 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.
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 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 during the six months ended September
30, 1996.
3. TRANSACTIONS WITH AFFILIATES
MANAGEMENT AGREEMENT
The Fund has a management agreement with Zurich Kemper Investments, Inc. (ZKI)
and pays a management fee at an annual rate of .15 of average daily net
assets. During the six months ended September 30, 1996, the Fund incurred
mamagement fees of $243,000.
ADMINISTRATIVE SERVICES AGREEMENT
The Fund also has an administrative services agreement with Kemper Distributors,
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, 1996, the Fund incurred administrative services fees of $160,000.
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, 1996, KDI paid fees of $80,000 to
various firms pursuant to services agreements.
SHAREHOLDER SERVICES AGREEMENT
Pursuant to a services agreement with the Fund's transfer agent, Kemper Service
Company (KSvC) is the shareholder service agent of the Fund. Under the
agreement, KSvC received shareholder services fees of $5,000 for the six months
ended September 30, 1996.
10
<PAGE> 12
Investors Cash Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
================================================================================
OFFICERS AND TRUSTEES
Certain officers or trustees of the Fund are also officers or directors of ZKI.
During the six months ended September 30, 1996, the Fund made no payments to
its officers and incurred trustees' of $9000 to independent trustees.
EXPENSE WAIVER
ZKI has agreed to temporarily waive its management fee and absorb 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, ZKI
waived $125,000 of expenses during the six months ended September 30, 1996.
11
<PAGE> 13
<TABLE>
<CAPTION>
Investors Cash Trust
- -----------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
===============================================================================================
GOVERNMENT SECURITIES PORTFOLIO Six months
ended Year ended March 31,
Sept. 30, 1996 1996 1995 1994 1993
- -----------------------------------------------------------------------------------------------
<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 .06 .05 .03 .03
- -----------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00 1.00 1.00
- -----------------------------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 2.61% 5.74 4.74 3.00 3.12
- -----------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED)
Expenses after expense absorption .25% .25 .25 .25 .38
- -----------------------------------------------------------------------------------------------
Net investment income 5.15% 5.57 4.72 2.96 3.13
- -----------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS (ANNUALIZED)
Expenses .31% .32 .33 .43 .56
- -----------------------------------------------------------------------------------------------
Net investment income 5.09% 5.50 4.64 2.78 2.95
- -----------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $241,372 230,944 176,024 129,611 129,025
===============================================================================================
TREASURY PORTFOLIO Six months
ended Year ended March 31,
Sept. 30, 1996 1996 1995 1994 1993
- -----------------------------------------------------------------------------------------------
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 .05 .03 .03
- -----------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00 1.00 1.00
- -----------------------------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 2.55% 5.66 4.69 2.96 3.09
- -----------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED)
Expenses after expense absorption .25% .25 .25 .23 .37
- -----------------------------------------------------------------------------------------------
Net investment income 5.03% 5.48 4.76 2.92 2.97
- -----------------------------------------------------------------------------------------------
OTHER RATIOS TO AVERAGE NET ASSETS (ANNUALIZED)
Expenses .36% .37 .39 .61 .78
- -----------------------------------------------------------------------------------------------
Net investment income 4.92% 5.36 4.62 2.54 2.56
- -----------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $ 85,795 101,576 65,389 28,683 20,275
===============================================================================================
</TABLE>
NOTE:
ZKI has agreed to temporarily waive its management fee and absorb certain
operating expenses. The Other Ratios to Average Net Assets are computed
without this expense waiver or absorption.
(12)
<PAGE> 14
Investment Manager
Zurich Kemper Investments, Inc.
Principal Underwriter
Kemper Distributors, Inc.
222 South Riverside Plaza
Chicago, IL 60606
This report is not to be distributed unless preceded or accompanied by a
prospectus.
1023530 10/96
