<PAGE> 1
1
Investors Cash Trust
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DEAR SHAREHOLDER:
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We appreciate your decision to invest in Investors Cash Trust. To
provide you with an update of holdings and financial highlights, on
the following pages you'll find the Investors Cash Trust semiannual
report for the six-month period ended September 30, 1999.
Briefly, for the past six months, the Fund's Government Securities Portfolio and
Treasury Portfolio registered solid performance and achieved their objective of
providing maximum current income from high quality money market securities while
maintaining stability of principal.
ECONOMIC REVIEW AND OUTLOOK
Over the past six months the U.S. economy continued to grow, as inflation and
low unemployment figures boosted consumer confidence. The Federal Reserve Board
of Governors (the Fed) continued to take measures to tighten monetary
conditions. This was due to continuing concerns the economy was growing at too
rapid of a pace and inflation would start emerging because of tight labor
markets. Meanwhile, a number of foreign economies continued to rebound,
especially Japan and Europe. These factors translated into increased worldwide
growth and capital demand, and helped build the expectation that the Gross
Domestic Product should remain strong with at least 4% growth. As a result, the
Fed seems content on managing interest rates for the remainder of this year and
seems interested in maintaining orderly, functioning financial markets. We
anticipate a relatively good pace of economic growth continuing into the new
year.
Considering this information, we plan to take a relatively defensive approach to
Investors Cash Trust portfolios' average maturity, although we will look for
attractive opportunities to extend maturities, and enhance performance.
Rest assured that the Fund's management is dedicated to achieving the
Portfolios' objective. Given the conditions stated above and our strategy,
Investors Cash Trust offers a high degree of stability, and should continue to
be an excellent place for you to invest your money.
Thank you again for your investment in Investors Cash Trust. We look forward to
serving your investment needs for years to come.
Frank J. Rachwalski
Frank J. Rachwalski
Fund Vice President and Lead Portfolio Manager
November 15, 1999
Frank Rachwalski is a Managing Director of Scudder Kemper Investments, Inc. and
is Vice President and Lead Portfolio Manager of Investors Cash Trust. Mr.
Rachwalski holds B.B.A and M.B.A degrees from Loyola University.
FUND RESULTS
For the six-month period ended September 30, 1999
<TABLE>
<CAPTION>
Annualized
Net Yield
<S> <C>
Government Securities Portfolio 4.78 %
Treasury Portfolio 4.60 %
</TABLE>
NOTES
The portfolios' net yield is the annualized sum of the daily dividend rates for
the period. Yields are historical, may fluctuate, and do not guarantee future
performance.
Like all money market funds, an investment in these funds is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although the funds seek to preserve your investment at $1.00 per share
it is possible to lose money.
The views expressed in this report reflect those of the portfolio manager only
through the end of the period 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, 1999 (unaudited)
(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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(a)Federal Farm Credit Banks
5.35%, 10/1/99 $ 3,500
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Federal Home Loan Bank
5.05% - 5.12%, 3/1/00 - 5/17/2000 19,000
(a) 5.30% - 5.35%, 10/1/99 50,489
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Federal Home Loan Mortgage Corp.
5.20% - 5.22%, 10/1/99 - 10/4/99 34,128
(a) 5.19%, 10/18/99 19,990
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Federal National Mortgage Association
5.05%, 2/23/00 1,500
(a) 5.33%, 12/6/99 1,999
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Overseas Private Investment Corp
(a) 5.13%, 10/4/99 18,000
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TOTAL SHORT-TERM NOTES--55.9%
(average maturity: 33 days) 148,606
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</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
(b)REPURCHASE AGREEMENTS
(Dated 9/99 collateralized by Federal Home Loan
Mortgage Association and U.S. Treasury securities)
-----------------------------------------------------------
Bear, Stearns Cos., Inc.
(held at the Bank of New York)
5.3%, 10/27/99 $ 20,000
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Donaldson, Lufkin & Jenrette
(held at the Bank of New York)
5.4%, 10/1/99 25,000
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Goldman Sachs Cos., Inc.
(held at the Bank of New York)
5.24%, 10/4/99 25,000
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Merrill Lynch Government Securities, Inc.
(held at The Chase Manhattan Bank)
5.4%, 10/27/99 20,000
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Salomon Smith Barney Holdings
(held at The Chase Manhattan Bank)
5.28%, 10/18/99 27,000
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TOTAL REPURCHASE AGREEMENTS--44.1%
(average maturity: 14 days) 117,000
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TOTAL INVESTMENTS--100%
(average maturity: 25 days) $265,606
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</TABLE>
See accompanying Notes to Financial Statements.
<PAGE> 3
Investors Cash Trust 3
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TREASURY PORTFOLIO
Investments at September 30, 1999 (unaudited)
(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)
-----------------------------------------------------------
(a)Overseas Private Investment Corp.
5.13%, 10/4/99 $13,000
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U.S. Treasury Bills
4.77% - 5.14%, 10/15/99 - 2/15/00 8,008
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TOTAL SHORT-TERM NOTES--52.1%
(average maturity: 20 days) 21,008
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(b)REPURCHASE AGREEMENTS
(dated 9/99, collateralized by U.S. Treasury securities)
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Bear, Sterns Cos., Inc.
(held at the Bank of New York)
5.15%, 10/7/99 4,000
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</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Lehman Government Securities, Inc.
(held at The Chase Manhattan Bank)
5.32%, 10/1/99 $ 3,000
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Merrill Lynch Government Securities, Inc.
(held at The Chase Manhattan Bank)
5.15%, 10/4/99 4,000
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Salomon Smith Barney Holdings, Inc.
(held at The Chase Manhattan Bank)
5.32%, 10/1/99 4,000
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State Street Bank and Trust Company
5.26%, 10/1/99 4,340
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TOTAL REPURCHASE AGREEMENTS--47.9%
(average maturity: 8 days) 19,340
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TOTAL INVESTMENTS--100%
(average maturity: 14 days) $40,348
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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 approximate principal amount.
(a) Variable rate securities. The rates are the current rates at September 30,
1999. The dates shown represent the demand date or next interest rate change
date.
(b) Repurchase agreements are fully collateralized by U.S. Government or U.S.
Government agency securities. All collateral is held at the fund's custodian
bank, State Street Bank and Trust Company, or at subcustodian banks, as
indicated. The collateral is monitored daily by the funds so that its market
value exceeds the carrying value of the repurchase agreements.
See accompanying Notes to Financial Statements.
<PAGE> 4
Investors Cash Trust 4
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STATEMENT OF ASSETS AND LIABILITIES
September 30, 1999 (unaudited)
(in thousands)
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<TABLE>
<CAPTION>
GOVERNMENT SECURITIES TREASURY
ASSETS PORTFOLIO PORTFOLIO
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<S> <C> <C>
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Investments, at amortized cost:
Short-term securities $148,606 21,008
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Repurchase agreements 117,000 19,340
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Cash -- 2
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Receivable for:
Fund shares sold 2,485 --
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Interest 1,515 544
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Other assets 7 4
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Total assets 269,613 40,898
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LIABILITIES AND NET ASSETS
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Cash overdraft 2,556 --
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Payable for:
Dividends 1,068 158
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Management fee 14 1
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Other accrued expenses 210 24
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Total liabilities 3,848 183
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Net assets applicable to shares outstanding $265,765 40,715
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THE PRICING OF SHARES
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Shares outstanding 265,765 40,715
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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 31, 1999 (unaudited)
(in thousands)
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES TREASURY
PORTFOLIO PORTFOLIO
--------------------- ---------
<S> <C> <C>
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INTEREST INCOME $11,134 1,194
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EXPENSES:
Management fee 335 37
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Administrative services fee 224 25
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Custodian and transfer agent fees and related expenses 46 5
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Reports to shareholders 9 2
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Registration costs 47 13
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Audit 20 3
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Trustees' fees 11 4
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Legal 3 2
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Other 41 2
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Total expenses before expense waiver 736 93
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Less expenses waived by the investment manager (201) (32)
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Total expenses absorbed by the fund 535 61
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Net investment income $10,599 1,133
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</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(in thousands)
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<TABLE>
<CAPTION>
GOVERNMENT SECURITIES PORTFOLIO TREASURY PORTFOLIO
------------------------------------ ------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
SEPTEMBER 30, 1999 YEAR ENDED SEPTEMBER 30, 1999 YEAR ENDED
(UNAUDITED) MARCH 31, 1999 (UNAUDITED) MARCH 31, 1999
------------------ -------------- ------------------ --------------
<S> <C> <C> <C> <C>
OPERATIONS, DIVIDENDS AND
CAPITAL SHARE ACTIVITY
Net investment income $ 10,599 18,028 1,133 2,909
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Dividends to shareholders from net investment
income (10,599) (18,028) (1,133) (2,909)
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CAPITAL SHARE TRANSACTIONS (DOLLAR AMOUNTS AND
NUMBER OF SHARES ARE THE SAME):
Shares sold 670,080 1,521,330 15,176 88,458
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Shares issued in reinvestment of dividends 8,494 14,749 1,186 2,965
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678,574 1,536,079 16,362 91,423
Shares redeemed (902,936) (1,358,146) (34,049) (107,311)
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Net increase (decrease) from capital share
transactions and total increase (decrease) in
net assets (224,362) 177,933 (17,687) (15,888)
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NET ASSETS:
Beginning of year 490,127 312,194 58,402 74,290
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End of year $ 265,765 490,127 40,715 58,402
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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 (the "fund") is registered under
the Investment Company Act of 1940, as amended (the
"1940 Act"), as an open-end, diversified management
investment company organized as a Massachusetts
business trust. The fund currently offers two series of
shares (portfolios)--the Government Securities
Portfolio and the Treasury Portfolio.
The fund's financial statements are prepared in
accordance with generally accepted accounting
principles which require the use of management
estimates. The policies described below are followed
consistently by the fund in preparation of its
financial statements.
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2. SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION
The fund values all portfolio securities utilizing the
amortized cost method permitted in accordance with Rule
2a-7 under the 1940 Act and pursuant to which the fund
must adhere to certain conditions. Under this method,
which does not take into account unrealized gains or
losses on securities, an instrument is initially valued
at its cost and thereafter assumes a constant
accretion/amortization to maturity of any
discount/premium.
REPURCHASE AGREEMENTS. Each portfolio may enter into
repurchase agreements with certain banks and
broker/dealers whereby the fund, through its custodian
or sub-custodian bank, receives delivery of the
underlying securities, the amount of which at the time
of purchase and each subsequent business day is
required to be maintained at such a level that the
market value is equal to at least the principal amount
of the repurchase price plus accrued interest.
FEDERAL INCOME TAXES. The fund's policy is to comply
with the requirements of the Internal Revenue Code, as
amended, which are applicable to regulated investment
companies and to distribute all of its taxable income
to its shareholders. Accordingly, the fund paid no
federal income taxes and no federal income tax
provision was required.
DISTRIBUTION OF INCOME AND GAINS. All of the net
investment income of the fund is declared as a daily
dividend and is distributed to shareholders monthly.
Net investment income includes all realized gains
(losses) on portfolio securities.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME.
Investment transactions are accounted for on the trade
date. Interest income is recorded on the accrual basis.
All discounts and premiums are accreted/amortized for
both tax and financial reporting purposes.
EXPENSES. Expenses arising in connection with a
portfolio are allocated to that portfolio. Other fund
expenses are allocated among the portfolios in
proportion to their relative net assets.
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3. TRANSACTIONS WITH AFFILIATES
MANAGEMENT AGREEMENT. The fund has a management
agreement with Scudder Kemper Investments, Inc. (Scudder
Kemper) and pays a monthly investment management fee of
1/12 of the annual rate of .15% of average daily net
assets. During the six months ended September 30, 1999,
the fund incurred management fees of $139,000 after an
expense waiver by Scudder Kemper.
<PAGE> 7
Investors Cash Trust
7
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NOTES TO FINANCIAL STATEMENTS
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ADMINISTRATIVE SERVICES AGREEMENT. The fund 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, 1999, the fund incurred administrative
services fees of $249,000 of which $50,000 is unpaid at
September 30, 1999. 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.
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 $31,000 for the six months
ended September 30, 1999 of which $7,000 is unpaid at
September 30, 1999.
OFFICERS AND TRUSTEES. Certain officers or trustees of
the fund are also officers or directors of Scudder
Kemper. During the six months ended September 30, 1999,
the fund made no payments to its officers and incurred
trustees' fees of $15,000 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
arrangement, Scudder Kemper waived $233,000 of expenses
during the six months ended September 30, 1999.
<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 1999 1999 1998 1997 1996 1995
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <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 1.00
- -------------------------------------------------------------------------------------------------------------------------
Net investment income .02 .05 .05 .05 .06 .05
- -------------------------------------------------------------------------------------------------------------------------
Less dividends declared .02 .05 .05 .05 .06 .05
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 1.00 1.00 1.00 1.00 1.00 1.00
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 2.42% 5.20 5.50 5.30 5.74 4.74
- -------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS AFTER EXPENSE ABSORPTION
(ANNUALIZED):
Expenses .25% .25 .25 .25 .25 .25
- -------------------------------------------------------------------------------------------------------------------------
Net investment income 4.78% 5.05 5.37 5.17 5.57 4.72
- -------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS BEFORE EXPENSE ABSORPTION
(ANNUALIZED):
Expenses .33% .33 .38 .32 .32 .33
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Net investment income 4.70% 4.97 5.24 5.10 5.50 4.64
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SUPPLEMENTAL DATA:
Net assets at end of year (in thousands) $265,765 490,127 312,194 168,933 230,944 176,024
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</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, -----------------------------------------------
TREASURY PORTFOLIO 1999 1999 1998 1997 1996 1995
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <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 1.00
- -------------------------------------------------------------------------------------------------------------------------
Net investment income .02 .05 .05 .05 .05 .05
- -------------------------------------------------------------------------------------------------------------------------
Less dividends declared .02 .05 .05 .05 .05 .05
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 1.00 1.00 1.00 1.00 1.00 1.00
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 2.33% 5.03 5.34 5.15 5.66 4.69
- -------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS AFTER EXPENSE ABSORPTION
(ANNUALIZED):
Expenses .25% .25 .25 .25 .25 .25
- -------------------------------------------------------------------------------------------------------------------------
Net investment income 4.60% 4.92 5.21 5.03 5.48 4.76
- -------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS BEFORE EXPENSE ABSORPTION
(ANNUALIZED):
Expenses .38% .37 .38 .37 .37 .39
- -------------------------------------------------------------------------------------------------------------------------
Net investment income 4.47% 4.80 5.08 4.91 5.36 4.62
- -------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of year (in thousands) $ 40,715 58,402 74,290 63,347 101,576 65,389
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE: Scudder Kemper has agreed to temporarily waive a portion of its management
fee and absorb certain operating expenses of the portfolios.
Data for the six month period ended September 30, 1999 is unaudited.
TAX INFORMATION
All of the dividends from the Government Securities and Treasury Portfolios are
taxable as ordinary income. These dividends, whether received in cash or
reinvested in shares, must be included in your federal income tax return and
must be reported by the portfolio to the Internal Revenue Service in accordance
with U.S. Treasury Department Regulations.
Please consult a tax adviser if you have questions about federal or state income
tax laws, or on how to prepare your tax returns.
<PAGE> 9
INVESTORS
CASH TRUST
SEMI-ANNUAL REPORT
September 30, 1999
- Government Securities Portfolio
- Treasury Portfolio
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-3 510338 11/99 (recycle LOGO) printed on recycled paper
