<PAGE> 1
1
Investors Cash Trust
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DEAR SHAREHOLDERS:
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We are pleased to provide you with the Investors Cash Trust semiannual
report for the six month period ended September 30, 1997.
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 economy has been growing at a much faster rate than expected. Available data
continues to suggest that spending remains strong and economic growth will
exceed a 3% level throughout the fourth quarter. Despite this robust pace, there
have been few inflationary pressures. Accordingly, the Fed has left interest
rates untouched since March of this year. Looking forward, we anticipate that
rates will resume an upward bias given the continuing momentum of the economy.
Under these conditions, 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 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,
Frank J. Rachwalski
Frank J. Rachwalski
Vice President and Portfolio Manager
October 14, 1997
Frank Rachwalski is Senior Vice President of Zurich Kemper Investments, Inc. and
Vice President and Portfolio Manager of Investors Cash Trust. Mr. Rachwalski
holds B.B.A. and M.B.A. degrees from Loyola University.
PORTFOLIO RESULTS
For the six month period ended September 30, 1997, the fund's two Portfolios had
the following net annualized yields:
The Government Securities Portfolio had a net annualized yield of 5.35%.
The Treasury Portfolio had a net annualized yield of 5.18%.
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 month period ended September
30, 1997, is the 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.
<PAGE> 2
Investors Cash Trust 2
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GOVERNMENT SECURITIES PORTFOLIO
Investments at September 30, 1997
(Value in thousands)
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<TABLE>
<CAPTION>
Value
<S> <C>
SHORT-TERM NOTES
(Issued or guaranteed by U.S. government
agencies or instrumentalities)
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Federal Farm Credit Banks
5.47% - 5.51%, 10/7/97 - 12/17/97 $ 6,158
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Federal Home Loan Bank
6.00%, 10/1/97 16,000
(a) 5.68%, 11/2/97 3,100
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Federal Home Loan Mortgage Corp.
(a) 5.90%, 10/1/97 3,157
5.44% - 6.05%, 10/1/97 - 12/5/97 33,542
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(a)Federal National Mortgage Association
5.29% - 5.60%, 10/1/97 - 10/7/97 21,553
5.45% - 5.52%, 10/15/97 - 11/12/97 9,910
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TOTAL SHORT-TERM NOTES--42.5%
(average maturity: 9 days) 93,420
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(b)REPURCHASE AGREEMENTS
(Dated 10/97, collateralized by Federal Home Loan
Mortgage Corporation, Federal National Mortgage
Association and U.S. Treasury securities)
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Bear, Stearns & Co. Inc.
5.64% - 5.66%, 10/1/97 - 10/8/97 8,000
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CS First Boston Inc.
5.40% - 5.50%, 10/1/97 - 10/7/97 14,000
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Chase Chemical Securities, Inc.
5.52% - 5.60%, 10/15/97 - 11/26/97 9,000
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</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Dresdner Security (USA) Inc.
5.42% - 5.44%, 10/1/97 - 10/15/97 $ 8,500
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Goldman, Sachs & Co.
5.45% - 5.50%, 10/20/97 - 11/26/97 17,500
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Lehman Government Securities Inc.
5.45% - 5.52%, 10/1/97 - 11/26/97 19,800
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Merrill Lynch Government Securities, Inc.
(held at The Chase Manhattan Bank)
5.50% - 5.55%, 10/1/97 - 12/1/97 20,500
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J. P. Morgan Securities Inc.
5.44% - 5.47%, 10/1/97 - 10/15/97 10,500
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Morgan Stanley & Co. Inc.
5.52% - 5.61%, 10/14/97 - 12/9/97 10,200
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UBS Securities, Inc.
5.41%, 10/14/97 10,000
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TOTAL REPURCHASE AGREEMENTS--58.3%
(average maturity: 23 days) 128,000
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TOTAL INVESTMENTS--100.8%
(average maturity: 17 days) 221,420
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LIABILITIES, LESS OTHER ASSETS--(.8%) (1,717)
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NET ASSETS--100% $219,703
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</TABLE>
<PAGE> 3
Investors Cash Trust 3
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TREASURY PORTFOLIO
Investments at September 30, 1997
(Value in thousands)
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<TABLE>
<CAPTION>
Value
<S> <C>
U.S. TREASURY BILLS--35.1%
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3.98%, 10/9/97
(average maturity: 8 days) $20,182
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(b)REPURCHASE AGREEMENTS
(Dated 10/97, collateralized by U.S. Treasury securities)
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Bear, Stearns & Co. Inc.
5.50%, 10/1/97 2,500
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CS First Boston Inc.
5.31%, 10/8/97 2,600
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Chase Chemical Securities, Inc.
5.35% - 5.38%, 10/15/97 - 10/20/97 2,500
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Dresdner Security (USA) Inc.
5.42%, 10/1/97 2,500
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Goldman, Sachs & Co.
5.40% - 6.00%, 10/1/97 - 11/5/97 5,100
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Lehman Government Securities Inc.
5.42% - 6.00%, 10/1/97 - 11/5/97 5,100
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Merrill Lynch Government Securities, Inc.
5.40% - 5.80%, 10/1/97 - 11/24/97 5,000
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</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
J. P. Morgan Securities Inc.
5.44% - 5.95%, 10/1/97 $ 5,100
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Morgan Stanley & Co. Inc.
5.42% - 5.44%, 11/10/97 - 11/12/97 2,500
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Nomura Securities International, Inc.
5.44%, 11/5/97 2,500
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UBS Securities, Inc.
5.44%, 11/10/97 2,600
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TOTAL REPURCHASE AGREEMENTS--66.2%
(average maturity: 17 days) 38,000
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TOTAL INVESTMENTS--101.3%
(average maturity: 14 days) 58,182
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LIABILITIES, LESS OTHER ASSETS--(1.3%) (735)
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NET ASSETS--100% $57,447
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</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 September
30, 1997. 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.
<PAGE> 4
Investors Cash Trust 4
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STATEMENT OF ASSETS AND LIABILITIES
September 30, 1997
(in thousands)
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<TABLE>
<CAPTION>
GOVERNMENT SECURITIES TREASURY
ASSETS PORTFOLIO PORTFOLIO
<S> <C> <C>
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Investments, at amortized cost:
Short-term securities $ 93,420 20,182
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Repurchase agreements 128,000 38,000
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Interest receivable 741 93
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Total assets 222,161 58,275
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LIABILITIES AND NET ASSETS
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Cash overdraft 1,575 599
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Payable for:
Dividends 832 220
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Management fee 4 2
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Administrative services fee 18 5
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Trustees' fees and other 29 2
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Total liabilities 2,458 828
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Net assets applicable to shares outstanding $219,703 57,447
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THE PRICING OF SHARES
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Shares outstanding 219,703 57,447
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Net asset value and redemption price per share $1.00 1.00
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</TABLE>
See accompanying Notes to Financial Statements.
<PAGE> 5
Investors Cash Trust 5
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STATEMENT OF OPERATIONS
Six months ended September 30, 1997
(in thousands)
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<TABLE>
<CAPTION>
GOVERNMENT SECURITIES TREASURY
PORTFOLIO PORTFOLIO
--------------------- ---------
<S> <C> <C>
INTEREST INCOME $5,428 1,636
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EXPENSES:
Management fee 145 46
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Administrative services fee 96 30
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Custodian and transfer agent fees and related expenses 21 4
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Reports to shareholders 4 3
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Registration costs 78 17
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Professional fees 19 7
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Trustees' fees and other 7 7
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Total expenses before expense waiver 370 114
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Less expenses waived by the investment manager (128) (39)
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Total expenses absorbed by the Fund 242 75
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Net investment income $5,186 1,561
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</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(in thousands)
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<TABLE>
<CAPTION>
GOVERNMENT SECURITIES TREASURY
PORTFOLIO PORTFOLIO
------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
1997 1997 1997 1997
------------------------- -------------------------
<S> <C> <C> <C> <C>
OPERATIONS, DIVIDENDS AND
CAPITAL SHARE ACTIVITY
Net investment income $ 5,186 11,025 1,561 4,095
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Dividends to shareholders from net investment income (5,186) (11,025) (1,561) (4,095)
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CAPITAL SHARE TRANSACTIONS (DOLLAR AMOUNTS AND NUMBER OF
SHARES
ARE THE SAME):
Shares sold 307,832 581,656 53,591 129,964
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Shares issued in reinvestment of dividends 4,709 10,426 1,601 4,148
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312,541 592,082 55,192 134,112
Shares redeemed (261,771) (654,093) (61,092) (172,341)
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Net increase (decrease) from capital share transactions and
total increase (decrease) in net assets 50,770 (62,011) (5,900) (38,229)
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NET ASSETS:
Beginning of period 168,933 230,944 63,347 101,576
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End of period $ 219,703 168,933 57,447 63,347
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</TABLE>
<PAGE> 6
Investors Cash Trust 6
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NOTES TO FINANCIAL STATEMENTS
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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 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 during the six months ended September 30,
1997.
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, 1997, the Fund incurred management
fees of $90,000 after an expense waiver by ZKI.
ADMINISTRATIVE SERVICES AGREEMENT
The Fund has an administrative services agreement with Zurich Kemper
Distributors, Inc. (ZKDI). For its services as primary administrator, the Fund
pays ZKDI an annual fee of .10% of average daily net assets. For the six months
ended September 30, 1997, the Fund incurred administrative services fees of
$126,000. ZKDI has related service agreements with various firms to provide cash
management and other services for Fund shareholders. ZKDI pays these firms at an
annual rate ranging between .05% and .10% of average daily net assets. During
the six months ended September 30, 1997, ZKDI paid fees of $63,000 to various
firms pursuant to service agreements.
SHAREHOLDER SERVICES AGREEMENT
Pursuant to a services agreement with the Fund's transfer agent, Zurich Kemper
Service Company
<PAGE> 7
Investors Cash Trust 7
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NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
(ZKSvC) is the shareholder service agent of the Fund. Under the agreement, ZKSvC
received shareholder services fees of $11,000 for the six months ended September
30, 1997.
OFFICERS AND TRUSTEES
Certain officers or trustees of the Fund are also officers or directors of ZKI.
During the six months ended September 30, 1997, the Fund made no payments to its
officers and incurred trustees' fees of $11,000 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 $167,000 of expenses during the six months ended September 30, 1997.
<PAGE> 8
Investors Cash Trust 8
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FINANCIAL HIGHLIGHTS
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<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, -------------------------------------
GOVERNMENT SECURITIES PORTFOLIO 1997 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------------
<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 .06 .05 .03
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00 1.00 1.00
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 2.71% 5.30 5.74 4.74 3.00
- -------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS AFTER EXPENSE
ABSORPTION(ANNUALIZED):
Expenses .25% .25 .25 .25 .25
- -------------------------------------------------------------------------------------------------------------------
Net investment income 5.35% 5.17 5.57 4.72 2.96
- -------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS BEFORE EXPENSE
ABSORPTION(ANNUALIZED):
Expenses .38% .32 .32 .33 .43
- -------------------------------------------------------------------------------------------------------------------
Net investment income 5.22% 5.10 5.50 4.64 2.78
- -------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $219,703 168,933 230,944 176,024 129,611
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, -------------------------------------
TREASURY PORTFOLIO 1997 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------------
<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 .05 .05 .03
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00 1.00 1.00
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 2.63% 5.15 5.66 4.69 2.96
- -------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS AFTER EXPENSE
ABSORPTION(ANNUALIZED):
Expenses .25% .25 .25 .25 .23
- -------------------------------------------------------------------------------------------------------------------
Net investment income 5.18% 5.03 5.48 4.76 2.92
- -------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS BEFORE EXPENSE
ABSORPTION(ANNUALIZED):
Expenses .38% .37 .37 .39 .61
- -------------------------------------------------------------------------------------------------------------------
Net investment income 5.05% 4.91 5.36 4.62 2.54
- -------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $ 57,447 63,347 101,576 65,389 28,683
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE:ZKI has agreed to temporarily waive its management fee and absorb certain
operating expenses of the Portfolios.
<PAGE> 9
Investors
Cash Trust
Semiannual Report
September 30, 1997
INVESTMENT MANAGER:
ZURICH KEMPER INVESTMENTS, INC.
PRINCIPAL UNDERWRITER:
ZURICH KEMPER DISTRIBUTORS, INC.
222 South Riverside Plaza, Chicago, IL 60606
www.kemper.com
This report is not to be distributed unless preceded
or accompanied by a prospectus.
ICT-3 1039170 10/97 (LOGO)printed on recycled paper
