<PAGE> 1
1
Investors Cash Trust
- --------------------------------------------------------------------------------
DEAR SHAREHOLDERS:
- --------------------------------------------------------------------------------
We are pleased to provide you with the Investors Cash Trust annual
report for the year ended March 31, 1998.
Your fund's management greatly appreciates your decision to invest in Investors
Cash Trust. During the past year, 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
Strong economic indicators prove that the U.S. economy's growth is still
surprisingly robust. Inflation has disappeared from the economy for the second
time in three months in March and is down for the first quarter of 1998;
consumer spending is high, unemployment is low and GDP growth continues to
remain strong with an outlook of at least a 3.5% growth rate this quarter.
Inflation is expected to accelerate later this year, but still be relatively
moderate.
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 Rachwalski
Frank Rachwalski
Vice President and Portfolio Manager
May 18, 1998
Frank Rachwalski is a Managing Director of Scudder 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 year ended March 31, 1998, the fund's two Portfolios had the following
net yields:
The Government Securities Portfolio had a net yield of 5.36%.
The Treasury Portfolio had a net yield of 5.22%.
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 yield for the year ended March 31, 1998, 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 March 31, 1998
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
SHORT-TERM NOTES
(Issued or guaranteed by U.S. government
agencies or instrumentalities)
- -----------------------------------------------------------
(a)Federal Farm Credit Banks
5.61%, 4/1/98 $ 5,000
- -----------------------------------------------------------
Federal Home Loan Bank
5.41% - 5.51%, 4/7/98 - 6/26/98 33,991
(a) 5.54% - 5.60%, 4/7/98 - 5/2/98 13,096
- -----------------------------------------------------------
Federal Home Loan Mortgage Corp.
5.41% - 5.54%, 4/3/98 - 6/8/98 66,163
(a) 5.90%, 4/1/98 3,152
- -----------------------------------------------------------
Federal National Mortgage Association
(a) 5.28% - 5.60%, 4/1/98 - 4/7/98 23,045
5.42% - 5.57%, 4/10/98 - 6/26/98 43,651
- -----------------------------------------------------------
TOTAL SHORT-TERM NOTES--60.2%
(average maturity: 30 days) 188,098
- -----------------------------------------------------------
(b)REPURCHASE AGREEMENTS
(Dated 1/98 - 3/98, collateralized by Federal Home
Loan Mortgage Corporation, Federal National
Mortgage Association and U.S. Treasury securities)
- -----------------------------------------------------------
Bear, Stearns & Co., Inc.
5.56% - 5.57%, 4/29/98 - 5/6/98 14,000
- -----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
CS First Boston, Inc.
5.50%, 4/3/98 $ 10,000
- -----------------------------------------------------------
Goldman, Sachs & Co.
5.45% - 5.51%, 4/1/98 - 6/3/98 26,500
- -----------------------------------------------------------
Merrill Lynch Government Securities, Inc.
(held at The Chase Manhattan Bank)
5.45% - 6.00%, 4/1/98 - 6/24/98 40,500
- -----------------------------------------------------------
Morgan Stanley, Dean Witter, Discover & Co.
5.52% - 5.59%, 4/6/98 - 4/20/98 12,000
- -----------------------------------------------------------
Nomura Securities International, Inc.
5.50% - 5.57%, 4/1/98 - 6/3/98 20,000
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS--39.4%
(average maturity: 20 days) 123,000
- -----------------------------------------------------------
TOTAL INVESTMENTS--99.6%
(average maturity: 26 days) 311,098
- -----------------------------------------------------------
CASH AND OTHER ASSETS, LESS LIABILITIES--.4% 1,096
- -----------------------------------------------------------
NET ASSETS--100% $312,194
- -----------------------------------------------------------
</TABLE>
<PAGE> 3
Investors Cash Trust 3
- --------------------------------------------------------------------------------
TREASURY PORTFOLIO
Investments at March 31, 1998
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
U.S. TREASURY BILLS--37.8%
- -----------------------------------------------------------
5.29% - 5.40%, 4/16/98 - 4/23/98
(average maturity: 18 days) $28,129
- -----------------------------------------------------------
(b)REPURCHASE AGREEMENTS
(Dated 1/98 - 3/98, collateralized by U.S. Treasury
securities)
- -----------------------------------------------------------
CS First Boston, Inc.
5.48%, 5/6/98 3,300
- -----------------------------------------------------------
Dresdner Security (USA), Inc.
5.40%, 4/6/98 3,000
- -----------------------------------------------------------
Goldman, Sachs & Co.
5.37% - 5.41%, 4/8/98 - 4/27/98 7,200
- -----------------------------------------------------------
Lehman Government Securities, Inc.
5.40%, 5/13/98 3,400
- -----------------------------------------------------------
Merrill Lynch Government Securities, Inc.
(held at The Chase Manhattan Bank)
5.35% - 5.80%, 4/1/98 - 5/27/98 10,300
- -----------------------------------------------------------
J. P. Morgan Securities, Inc.
5.40% - 5.43%, 4/14/98 - 6/10/98 6,000
- -----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Morgan Stanley, Dean Witter, Discover & Co.
5.40%, 4/13/98 - 5/18/98 $ 3,500
- -----------------------------------------------------------
Nomura Securities International, Inc.
5.42% - 5.44%, 4/8/98 3,200
- -----------------------------------------------------------
(c)UBS Securities, Inc.
5.40%, 4/8/98 - 5/27/98 6,800
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS--62.9%
(average maturity: 25 days) 46,700
- -----------------------------------------------------------
TOTAL INVESTMENTS--100.7%
(average maturity: 22 days) 74,829
- -----------------------------------------------------------
LIABILITIES, LESS OTHER ASSETS--(.7%) (539)
- -----------------------------------------------------------
NET ASSETS--100% $74,290
- -----------------------------------------------------------
</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,
1998. 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.
(c) Illiquid securities which represented 9.2% of the Treasury Portfolio's net
assets at March 31, 1998.
See accompanying Notes to Financial Statements.
<PAGE> 4
Investors Cash Trust 4
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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 portfolio of investments, of the Government Securities and Treasury
Portfolios, comprising Investors Cash Trust, as of March 31, 1998, 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 years since 1994. 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, 1998, 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, 1998, 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 years since 1994, in conformity with generally accepted
accounting principles.
ERNST & YOUNG LLP
Chicago, Illinois
May 18, 1998
<PAGE> 5
Investors Cash Trust 5
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STATEMENT OF ASSETS AND LIABILITIES
March 31, 1998
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES TREASURY
ASSETS PORTFOLIO PORTFOLIO
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------
Investments, at amortized cost:
Short-term securities $188,098 28,129
- ------------------------------------------------------------------------------------------------------
Repurchase agreements 123,000 46,700
- ------------------------------------------------------------------------------------------------------
Cash 1,363 --
- ------------------------------------------------------------------------------------------------------
Interest receivable 1,041 260
- ------------------------------------------------------------------------------------------------------
Total assets 313,502 75,089
- ------------------------------------------------------------------------------------------------------
LIABILITIES AND NET ASSETS
- ------------------------------------------------------------------------------------------------------
Cash overdraft -- 468
- ------------------------------------------------------------------------------------------------------
Payable for:
Dividends 1,259 315
- ------------------------------------------------------------------------------------------------------
Fund shares redeemed 3 --
- ------------------------------------------------------------------------------------------------------
Administrative services fee 2 5
- ------------------------------------------------------------------------------------------------------
Trustees' fees and other 44 11
- ------------------------------------------------------------------------------------------------------
Total liabilities 1,308 799
- ------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $312,194 74,290
- ------------------------------------------------------------------------------------------------------
THE PRICING OF SHARES
- ------------------------------------------------------------------------------------------------------
Shares outstanding 312,194 74,290
- ------------------------------------------------------------------------------------------------------
Net asset value and redemption price per share $1.00 1.00
- ------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE> 6
Investors Cash Trust 6
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
Year ended March 31, 1998
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES TREASURY
PORTFOLIO PORTFOLIO
--------------------- ---------
<S> <C> <C>
INTEREST INCOME $12,811 3,298
- ----------------------------------------------------------------------------------------------------------
EXPENSES:
Management fee 342 91
- ----------------------------------------------------------------------------------------------------------
Administrative services fee 228 60
- ----------------------------------------------------------------------------------------------------------
Custodian and transfer agent fees and related expenses 54 10
- ----------------------------------------------------------------------------------------------------------
Reports to shareholders 8 6
- ----------------------------------------------------------------------------------------------------------
Registration costs 190 42
- ----------------------------------------------------------------------------------------------------------
Professional fees 25 9
- ----------------------------------------------------------------------------------------------------------
Trustees' fees and other 17 14
- ----------------------------------------------------------------------------------------------------------
Total expenses before expense waiver 864 232
- ----------------------------------------------------------------------------------------------------------
Less expenses waived by the investment manager (294) (81)
- ----------------------------------------------------------------------------------------------------------
Total expenses absorbed by the Fund 570 151
- ----------------------------------------------------------------------------------------------------------
Net investment income $12,241 3,147
- ----------------------------------------------------------------------------------------------------------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
Years ended March 31, 1998 and 1997
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES TREASURY
PORTFOLIO PORTFOLIO
---------------------- -------------------
1998 1997 1998 1997
---------------------- -------------------
<S> <C> <C> <C> <C>
OPERATIONS, DIVIDENDS AND
CAPITAL SHARE ACTIVITY
Net investment income $ 12,241 11,025 3,147 4,095
- ----------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (12,241) (11,025) (3,147) (4,095)
- ----------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (DOLLAR AMOUNTS AND NUMBER OF
SHARES ARE THE SAME):
Shares sold 811,717 581,656 141,213 129,964
- ----------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of dividends 10,466 10,426 3,091 4,148
- ----------------------------------------------------------------------------------------------------------
822,183 592,082 144,304 134,112
Shares redeemed (678,922) (654,093) (133,361) (172,341)
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) from capital share transactions and
total increase (decrease) in net assets 143,261 (62,011) 10,943 (38,229)
- ----------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of year 168,933 230,944 63,347 101,576
- ----------------------------------------------------------------------------------------------------------
End of year $ 312,194 168,933 74,290 63,347
- ----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 7
Investors Cash Trust 7
- --------------------------------------------------------------------------------
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 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
INVESTMENT MANAGER COMBINATION
Effective December 31, 1997, Zurich Insurance Company, the parent of Zurich
Kemper Investments, Inc. (ZKI), acquired a majority interest in Scudder, Stevens
& Clark, Inc. (Scudder), another major investment manager. As a result of this
transaction, the operations of ZKI were combined with Scudder to form a new
global investment organization named Scudder Kemper Investments, Inc. (Scudder
Kemper). The transaction resulted in the termination of the Fund's investment
management agreement with ZKI, however, a new investment management agreement
between the Fund and Scudder Kemper was approved by the Fund's Board of Trustees
and by the Fund's shareholders. The new management agreement, which was
effective December 31, 1997, is the same in all material respects as the
previous management agreement, except that Scudder Kemper is the new investment
adviser to the Fund. In addition, the names of the Fund's principal underwriter
and shareholder service agent were changed to Kemper Distributors, Inc. (KDI)
and Kemper Service Company (KSvC), respectively.
MANAGEMENT AGREEMENT
The Fund has a management agreement with Scudder Kemper and pays a management
fee at an
<PAGE> 8
Investors Cash Trust 8
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
annual rate of .15% of average daily net assets. During the year ended March 31,
1998, the Fund incurred management fees of $136,000 after an expense waiver by
Scudder Kemper.
ADMINISTRATIVE SERVICES AGREEMENT
The Fund has an administrative services agreement with KDI. 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, 1998, the Fund incurred administrative
services fees of $288,000. 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 year ended March 31, 1998, KDI paid fees of $145,000 to
various firms pursuant to service agreements.
SHAREHOLDER SERVICES AGREEMENT
Pursuant to a services agreement with the Fund's transfer agent, KSvC is the
shareholder service agent of the Fund. Under the agreement, KSvC received
shareholder services fees of $26,000 for the year ended March 31, 1998.
OFFICERS AND TRUSTEES
Certain officers or trustees of the Fund are also officers or directors of
Scudder Kemper. During the year ended March 31, 1998, the Fund made no payments
to its officers and incurred trustees' fees of $23,000 to independent trustees.
EXPENSE WAIVER
Scudder Kemper has agreed to temporarily waive a portion of 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, Scudder Kemper waived $375,000 of expenses during the year ended
March 31, 1998.
<PAGE> 9
Investors Cash Trust 9
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
------------------------------------------------
GOVERNMENT SECURITIES PORTFOLIO 1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------------------------------------
<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 .05 .05 .06 .05 .03
- --------------------------------------------------------------------------------------------------------------
Less dividends declared .05 .05 .06 .05 .03
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 1.00 1.00 1.00 1.00 1.00
- --------------------------------------------------------------------------------------------------------------
TOTAL RETURN 5.50% 5.30 5.74 4.74 3.00
- --------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS AFTER EXPENSE ABSORPTION:
Expenses .25% .25 .25 .25 .25
- --------------------------------------------------------------------------------------------------------------
Net investment income 5.37% 5.17 5.57 4.72 2.96
- --------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS BEFORE EXPENSE ABSORPTION:
Expenses .38% .32 .32 .33 .43
- --------------------------------------------------------------------------------------------------------------
Net investment income 5.24% 5.10 5.50 4.64 2.78
- --------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of year (in thousands) $312,194 168,933 230,944 176,024 129,611
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
-----------------------------------------------
TREASURY PORTFOLIO 1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------
<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 .05 .05 .05 .05 .03
- -------------------------------------------------------------------------------------------------------------
Less dividends declared .05 .05 .05 .05 .03
- -------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 1.00 1.00 1.00 1.00 1.00
- -------------------------------------------------------------------------------------------------------------
TOTAL RETURN 5.34% 5.15 5.66 4.69 2.96
- -------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS AFTER EXPENSE ABSORPTION:
Expenses .25% .25 .25 .25 .23
- -------------------------------------------------------------------------------------------------------------
Net investment income 5.21% 5.03 5.48 4.76 2.92
- -------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS BEFORE EXPENSE ABSORPTION:
Expenses .38% .37 .37 .39 .61
- -------------------------------------------------------------------------------------------------------------
Net investment income 5.08% 4.91 5.36 4.62 2.54
- -------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of year (in thousands) $74,290 63,347 101,576 65,389 28,683
- -------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE:Scudder Kemper has agreed to temporarily waive a portion of its management
fee and absorb certain operating expenses of the Portfolios.
<PAGE> 10
Investors Cash Trust 10
- --------------------------------------------------------------------------------
SPECIAL SHAREHOLDERS' MEETING
On December 3, 1997, a special shareholders' meeting was held and adjourned as
necessary. Investors Cash Trust shareholders were asked to vote on four separate
issues: election of nine members to the Board of Trustees, ratification of Ernst
& Young LLP as independent auditors, approval of new investment management
agreement with Scudder Kemper Investments, Inc. and approval of changes in
investment policies. The results are as follows:
ITEM 1: ELECTION OF THE BOARD OF TRUSTEES.
<TABLE>
<CAPTION>
AFFIRMATIVE WITHHOLD
- ---------------------------------------------------
<S> <C> <C>
DAVID W. BELIN 177,335,242 0
LEWIS A. BURNHAM 177,335,242 0
DONALD L. DUNAWAY 177,335,242 0
ROBERT B. HOFFMAN 177,335,242 0
DONALD R. JONES 177,335,242 0
SHIRLEY D. PETERSON 177,335,242 0
DANIEL PIERCE 177,335,242 0
WILLIAM P. SOMMERS 177,335,242 0
EDMOND D. VILLANI 177,335,242 0
</TABLE>
ITEM 2: SELECTION OF ERNST & YOUNG LLP AS INDEPENDENT AUDITORS.
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN
- ---------------------------------
<S> <C> <C>
170,929,637 0 6,405,605
</TABLE>
ITEM 3: NEW INVESTMENT MANAGEMENT AGREEMENT.
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN
- ---------------------------------
<S> <C> <C>
GOVERNMENT SECURITIES PORTFOLIO
142,199,057 241,456 367,146
TREASURY PORTFOLIO
28,506,229 0 6,021,355
</TABLE>
ITEM 4: APPROVE CHANGES IN INVESTMENT POLICIES.
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN
- ---------------------------------
<S> <C> <C>
GOVERNMENT SECURITIES PORTFOLIO
135,166,575 297,750 7,343,334
TREASURY PORTFOLIO
28,506,229 0 6,021,355
</TABLE>
<PAGE> 11
INVESTORS
CASH TRUST
ANNUAL REPORT
March 31, 1998
PRINCIPAL UNDERWRITER:
KEMPER DISTRIBUTORS, INC.
222 South Riverside Plaza, Chicago, IL 60606
This report is not to be distributed unless preceded
or accompanied by an Investors Cash Trust prospectus.
ICT-2 1047150 4/98 (LOGO)printed on recycled paper
