<PAGE> 1
- --------------------------------------------------------------------------------
DEAR SHAREHOLDERS:
INVESTORS MUNICIPAL CASH FUND
- --------------------------------------------------------------------------------
We are pleased to provide you with the Investors Municipal Cash Fund semiannual
report for the period ended September 30, 1997. The Investors Municipal Cash
Fund series includes Tax-Exempt New York Money Market Fund, Investors
Pennsylvania Municipal Cash Fund, Investors Florida Municipal Cash Fund and
Investors New Jersey Municipal Cash Fund.
Your fund's management greatly appreciates your decision to invest in Investors
Municipal Cash Fund. The fund registered solid performance and achieved its
objective of providing maximum current income exempt from Federal, and where
applicable, state income taxes, 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 Municipal Cash Fund 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 Municipal Cash Fund. Mr.
Rachwalski holds B.B.A. and M.B.A. degrees from Loyola University.
PORTFOLIO RESULTS
Tax-Exempt New York Money Market Fund had a net annualized yield for the six
months ended September 30, 1997 of 2.95% and a tax-equivalent yield of 5.22%.
Investors Pennsylvania Municipal Cash Fund had a net annualized yield for the
period May 21, 1997 to September 30, 1997 of 2.83% and a tax-equivalent yield of
4.63%.
Investors Florida Municipal Cash Fund had a net annualized yield for the period
May 22, 1997 to September 30, 1997 of 2.84% and a tax-equivalent yield of 4.52%.
Investors New Jersey Municipal Cash Fund had a net annualized yield for the
period May 23, 1997 to September 30, 1997 of 2.59% and a tax-equivalent yield of
4.40%.
NOTES
An investment in the funds is neither insured nor guaranteed by the U.S.
Government, and there can be no assurance that the funds will be able to
maintain a stable net asset value of $1.00 per share.
Each fund's net annualized yield for the period ended September 30, 1997, is the
annualized sum of the daily dividend rates for the period. Yields are historical
and may not represent future yields, which will fluctuate.
For Tax-Exempt New York Money Market Fund, the tax-equivalent yield is based
upon the fund's yield and a 43.5% combined Federal and State of New York and New
York City marginal income tax rate. For Investors Pennsylvania Municipal Cash
Fund, the tax-equivalent yield is based upon the fund's yield and a 38.9%
combined Federal and State of Pennsylvania marginal income tax rate. Investors
Florida Municipal Cash Fund's tax-equivalent yield is based upon the fund's
yield and a 37.1% Federal income tax rate. For Investors New Jersey Municipal
Cash Fund, the tax-equivalent yield is based upon the fund's yield and a 41.1%
combined Federal and State of New Jersey marginal income tax rate. Income may be
subject to local taxes and for some investors, the alternative minimum tax for
all funds.
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 Municipal Cash Fund 2
- --------------------------------------------------------------------------------
TAX-EXEMPT NEW YORK MONEY MARKET FUND
Investments at September 30, 1997
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
(A)VARIABLE RATE DEMAND SECURITIES
New York State
Energy Research and Development Authority:
Brooklyn Union Gas Project
3.95% $ 2,500
Niagara Mohawk Power Corp. Project
3.88% 14,650
Housing Finance Agency:
East 84th Street
3.95% 2,000
Hospital for Special Surgery
3.70% 1,000
Liberty View Apartments
3.75% 300
Mount Sinai School of Medicine
3.55% 100
Normandie Court I
4.00% 1,500
Trackside Homes Phase III
4.05% 200
250 West 50th Street
4.00% 1,500
Job Development Authority
3.72% 3,195
Local Government Assistance Corp.
3.95% 2,500
Medical Care Facilities Finance Agency:
Lenox Hill Hospital Project
4.00% 700
Pooled Equipment Loan Program
3.70% 300
- -----------------------------------------------------------
Babylon
Industrial Development Agency
4.05% 1,200
- -----------------------------------------------------------
Dutchess County
Industrial Development Agency
4.10% 100
- -----------------------------------------------------------
Franklin County
Industrial Development Agency
4.15% 300
- -----------------------------------------------------------
Metropolitan Transportation Authority
4.05% 3,500
- -----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
New York City
General Obligation
4.10% $18,800
Health and Hospitals Corp.
4.00% 2,000
Housing Development Corp.:
Columbus Gardens Project
4.05% 1,800
East 96th Street Project
4.20% 2,300
James Tower
4.00% 100
100 Jane Street
4.10% 700
Queenswood Apartments
4.20% 1,500
Tribeca Towers
3.90% 400
West 43rd Street
4.10% 700
Trust for Cultural Resources
3.80% 1,500
- -----------------------------------------------------------
St. Lawrence County
Industrial Development Agency
4.05% 500
- -----------------------------------------------------------
Schenectady County
Industrial Development Agency
3.85% 100
- -----------------------------------------------------------
TOTAL VARIABLE RATE DEMAND
SECURITIES--76.1%
(average maturity: 3 days) 65,945
- -----------------------------------------------------------
</TABLE>
<PAGE> 3
Investors Municipal Cash Fund 3
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
OTHER SECURITIES
New York State
Dormitory Authority:
Memorial Sloan-Kettering Cancer Center
3.50% - 3.70%, 11/12/97 - 12/16/97 $ 2,800
Second Short-Term Revenue Notes
3.85% - 3.90%, 10/15/97 - 12/12/97 1,572
Environmental Facilities Corp.
3.60% - 3.80%, 11/12/97 - 11/14/97 3,000
General Obligation
3.60% - 3.75%, 10/7/97 - 10/23/97 4,500
Power Authority
3.70% - 3.85%, 11/7/97 - 11/10/97 1,750
- -----------------------------------------------------------
New York City
Municipal Water Finance Authority
3.70% - 3.85%, 11/6/97 - 12/18/97 3,800
- -----------------------------------------------------------
Nassau County
Tax Anticipation Notes
3.85%, 4/10/98 2,004
- -----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Puerto Rico
Government Development Bank
3.60%, 11/12/97 $ 2,000
- -----------------------------------------------------------
TOTAL OTHER SECURITIES--24.7%
(average maturity: 58 days) 21,426
- -----------------------------------------------------------
TOTAL INVESTMENTS--100.8%
(average maturity: 17 days) 87,371
- -----------------------------------------------------------
LIABILITIES, LESS OTHER ASSETS--(.8%) (659)
- -----------------------------------------------------------
NET ASSETS--100% $86,712
- ---------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolio of Investments.
<PAGE> 4
Investors Municipal Cash Fund 4
- --------------------------------------------------------------------------------
INVESTORS PENNSYLVANIA MUNICIPAL CASH FUND
Investments at September 30, 1997
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
(A)VARIABLE RATE DEMAND SECURITIES
Pennsylvania State
Higher Education Assistance Agency
4.10% $ 100
- -----------------------------------------------------------
Allegheny County
Higher Education Facilities Authority
4.00% 100
- -----------------------------------------------------------
Chester County
Industrial Development Authority
4.25% 100
- -----------------------------------------------------------
Delaware County
Industrial Development Authority
3.90% 100
- -----------------------------------------------------------
Emmaus
General Authority
4.15% 100
- -----------------------------------------------------------
Erie County
Hospital Authority
4.10% 100
- -----------------------------------------------------------
Gettysburg
Industrial Development Authority
4.10% 100
- -----------------------------------------------------------
Indiana County
Industrial Development Authority
4.15% 100
- -----------------------------------------------------------
Langhorne
Saint Mary Hospital Authority
3.80% 100
- -----------------------------------------------------------
Lehigh County
Industrial Development Authority
3.60% 100
- -----------------------------------------------------------
Northumberland County
Foster Wheeler Mount Carmel Project
4.15% 100
- -----------------------------------------------------------
Philadelphia
Authority for Industrial Development
4.25% 100
Redevelopment Authority
4.10% 100
- -----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Quakertown
Hospital Authority
3.90% $ 100
- -----------------------------------------------------------
Schuylkill County
Industrial Development Authority
4.15% 100
- -----------------------------------------------------------
TOTAL VARIABLE RATE DEMAND
SECURITIES--56.7%
(average maturity: 5 days) 1,500
- -----------------------------------------------------------
OTHER SECURITIES
Allegheny County
Industrial Development Authority
3.70%, 10/17/97 200
- -----------------------------------------------------------
Beaver County
Industrial Development Authority
3.80%, 10/16/97 100
- -----------------------------------------------------------
Carbon County
Industrial Development Authority
3.80%, 12/9/97 100
- -----------------------------------------------------------
Delaware County
Industrial Development Authority
3.60%, 10/16/97 100
- -----------------------------------------------------------
Montgomery County
Industrial Development Authority
3.70%, 11/18/97 100
- -----------------------------------------------------------
Philadelphia
Gas Works Revenue
3.80%, 12/17/97 400
General Obligation
3.85%, 10/15/97 100
- -----------------------------------------------------------
</TABLE>
<PAGE> 5
Investors Municipal Cash Fund 5
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
Venango
Industrial Development Authority
3.85%, 10/22/97 $ 100
- -----------------------------------------------------------
TOTAL OTHER SECURITIES--45.3%
(average maturity: 44 days) 1,200
- -----------------------------------------------------------
TOTAL INVESTMENTS--102.0%
(average maturity: 22 days) 2,700
- -----------------------------------------------------------
LIABILITIES, LESS OTHER ASSETS--(2.0%) (52)
- -----------------------------------------------------------
NET ASSETS--100% $2,648
- ---------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolio of Investments.
<PAGE> 6
Investors Municipal Cash Fund 6
- --------------------------------------------------------------------------------
INVESTORS FLORIDA MUNICIPAL CASH FUND
Investments at September 30, 1997
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
(A)VARIABLE RATE DEMAND SECURITIES
Florida State
Housing Finance Agency:
Oaks at Mill Creek Project
4.15% $ 100
Monterey Meadows Apartments Project
4.15% 100
- -----------------------------------------------------------
Alachua County
Health Facilities Authority
4.10% 100
- -----------------------------------------------------------
Dade County
Aviation Facilities
4.30% 100
Industrial Development Authority
4.10% 100
- -----------------------------------------------------------
Hillsborough County
Industrial Development Authority
4.05% 100
Seaboard Tampa Terminals
4.05% 100
- -----------------------------------------------------------
Jacksonville
Hospital Revenue
4.10% 100
Industrial Development Authority
4.05% 100
Trailer Marine Transport Corp. Project
3.65% 100
- -----------------------------------------------------------
Orange County
Adventist Health System
4.05% 100
- -----------------------------------------------------------
Orlando
Republic Drive Interchange Project
4.00% 100
- -----------------------------------------------------------
Pinellas County
Health Revenue
3.80% 100
- -----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Puerto Rico
Government Development Bank
3.70% $ 100
- -----------------------------------------------------------
TOTAL VARIABLE RATE DEMAND
SECURITIES--47.9%
(average maturity: 5 days) 1,400
- -----------------------------------------------------------
OTHER SECURITIES
Hillsborough County
Aviation Authority
3.90%, 12/8/97 100
- -----------------------------------------------------------
Jacksonville
Electric Authority
3.70%, 10/22/97 100
- -----------------------------------------------------------
Orange County
Commercial Paper Notes
3.75%, 10/22/97 100
- -----------------------------------------------------------
Orlando
Capital Improvement Revenue
3.75%, 10/9/97 - 10/23/97 600
- -----------------------------------------------------------
Pinellas County
Educational Facilities Authority
3.65%, 10/20/97 100
- -----------------------------------------------------------
Sarasota County
Public Hospital District
3.80%, 11/13/97 100
- -----------------------------------------------------------
Sunshine State Governmental Financing Commission
3.75%, 10/14/97 100
- -----------------------------------------------------------
</TABLE>
<PAGE> 7
Investors Municipal Cash Fund 7
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
West Orange
Memorial Hospital Tax District
3.75%, 10/7/97 $ 100
- -----------------------------------------------------------
Puerto Rico
Government Development Bank
3.45%, 10/6/97 100
InterAmerican University of Puerto Rico Project
3.75%, 10/9/97 100
- -----------------------------------------------------------
TOTAL OTHER SECURITIES--51.4%,
(average maturity: 21 days) 1,500
- -----------------------------------------------------------
TOTAL INVESTMENTS--99.3%
(average maturity: 14 days) 2,900
- -----------------------------------------------------------
CASH AND OTHER ASSETS, LESS LIABILITIES--.7% 19
- -----------------------------------------------------------
NET ASSETS--100% $2,919
- ---------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolio of Investments.
<PAGE> 8
Investors Municipal Cash Fund 8
- --------------------------------------------------------------------------------
INVESTORS NEW JERSEY MUNICIPAL CASH FUND
Investments at September 30, 1997
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
(A)VARIABLE RATE DEMAND SECURITIES
New Jersey State
Economic Development Authority:
400 International Drive Partners
3.60% $ 100
El Dorado Terminals Co.
3.75% 100
Hoffmann - La Roche, Inc. Project
3.70% 100
National Utility Investors Corp. Project
3.60% 100
New Jersey - American Water Co., Inc. Project
3.90% 100
Pollution Control Revenue
3.70% 100
TRU Urban Renewal Corp. Project
3.65% 200
United Water New Jersey, Inc. Project
3.68% 200
Sports and Exposition
3.85% 100
Turnpike Authority
3.55% 100
- -----------------------------------------------------------
New Jersey
Union County
Pollution Control Revenue
3.30% 100
- -----------------------------------------------------------
Alabama
Phenix City
Industrial Development Board
3.95% 100
- -----------------------------------------------------------
District of Columbia
General Obligation
4.00% 100
- -----------------------------------------------------------
Illinois
Chicago
O'Hare International Airport
4.20% 100
- -----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Montana
Forsyth
Pollution Control Revenue
4.15% $ 100
- -----------------------------------------------------------
Puerto Rico
Government Development Bank
3.70% 100
- -----------------------------------------------------------
TOTAL VARIABLE RATE DEMAND
SECURITIES--69.9%
(average maturity: 5 days) 1,800
- -----------------------------------------------------------
OTHER SECURITIES
New Jersey State
Economic Development Authority
3.75%, 11/13/97 500
Port Authority
3.70%, 12/9/97 120
- -----------------------------------------------------------
Puerto Rico
Government Development Bank
3.45%, 10/6/97 100
InterAmerican University of Puerto Rico Project
3.75%, 10/9/97 100
- -----------------------------------------------------------
TOTAL OTHER SECURITIES--31.9%
(average maturity: 38 days) 820
- -----------------------------------------------------------
TOTAL INVESTMENTS--101.8%
(average maturity: 14 days) 2,620
- -----------------------------------------------------------
LIABILITIES, LESS OTHER ASSETS--(1.8%) (46)
- -----------------------------------------------------------
NET ASSETS--100% $2,574
- ---------------------------------------------------------
</TABLE>
NOTES TO PORTFOLIO OF INVESTMENTS
Interest rates represent annualized yield to date of maturity, except for
variable rate demand 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 demand securities are payable within five business days and
are backed by credit support agreements from banks or insurance
institutions. The rates shown are the current rates at September 30, 1997.
See accompanying Notes to Financial Statements.
<PAGE> 9
Investors Municipal Cash Fund 9
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1997
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSETS NEW YORK PENNSYLVANIA FLORIDA NEW JERSEY
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Investments, at amortized cost $87,371 2,700 2,900 2,620
- -------------------------------------------------------------------------------------------------------------------------
Cash -- -- 10 --
- -------------------------------------------------------------------------------------------------------------------------
Interest receivable 311 9 12 11
- -------------------------------------------------------------------------------------------------------------------------
Total assets 87,682 2,709 2,922 2,631
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
Cash overdraft 892 58 -- 54
- -------------------------------------------------------------------------------------------------------------------------
Payable for:
Dividends 7 -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Management fee 3 -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Distribution services fee 34 1 1 1
- -------------------------------------------------------------------------------------------------------------------------
Trustees' fees and other 34 2 2 2
- -------------------------------------------------------------------------------------------------------------------------
Total liabilities 970 61 3 57
- -------------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $86,712 2,648 2,919 2,574
- -------------------------------------------------------------------------------------------------------------------------
THE PRICING OF SHARES
- -------------------------------------------------------------------------------------------------------------------------
Shares outstanding 86,712 2,648 2,919 2,574
- -------------------------------------------------------------------------------------------------------------------------
Net asset value and redemption price per share $1.00 1.00 1.00 1.00
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 10
Investors Municipal Cash Fund 10
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
Six months ended September 30, 1997
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK PENNSYLVANIA(A) FLORIDA(B) NEW JERSEY(C)
---------------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME $1,268 33 34 34
- -------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fee 75 2 2 2
- -------------------------------------------------------------------------------------------------------------------------
Distribution services fee 169 5 4 5
- -------------------------------------------------------------------------------------------------------------------------
Custodian and transfer agent fees and related
expenses 38 -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Reports to shareholders 4 -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Registration costs 14 1 2 2
- -------------------------------------------------------------------------------------------------------------------------
Professional fees 12 -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Trustees' fees and other 21 2 2 2
- -------------------------------------------------------------------------------------------------------------------------
Total expenses before expense waiver 333 10 10 11
- -------------------------------------------------------------------------------------------------------------------------
Less expenses waived by the investment manager (61) (2) (2) (2)
- -------------------------------------------------------------------------------------------------------------------------
Total expenses absorbed by the Fund 272 8 8 9
- -------------------------------------------------------------------------------------------------------------------------
Net investment income $ 996 25 26 25
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period from May 21, 1997 (commencement of operations) to September
30, 1997
(b) For the period from May 22, 1997 (commencement of operations) to September
30, 1997
(c) For the period from May 23, 1997 (commencement of operations) to September
30, 1997
STATEMENT OF CHANGES IN NET ASSETS
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
--------NEW-YORK---------
SIX MONTHS YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
1997 1997
-------------------------
<S> <C> <C>
OPERATIONS, DIVIDENDS AND
CAPITAL SHARE ACTIVITY
Net investment income $ 996 1,077
- ---------------------------------------------------------------------------------------
Dividends to shareholders from
net investment income (996) (1,077)
- ---------------------------------------------------------------------------------------
Capital share transactions (dollar amounts and number of
shares are the same):
Shares sold 158,615 239,603
- ---------------------------------------------------------------------------------------
Shares issued in reinvestment of dividends 1,031 1,034
- ---------------------------------------------------------------------------------------
159,646 240,637
Shares redeemed (133,509) (198,589)
- ---------------------------------------------------------------------------------------
Net increase from capital share transactions and total
increase in net assets 26,137 42,048
- ---------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 60,575 18,527
- ---------------------------------------------------------------------------------------
End of period $ 86,712 60,575
- ---------------------------------------------------------------------------------------
</TABLE>
<PAGE> 11
Investors Municipal Cash Fund 11
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PENNSYLVANIA-------FLORIDA-------NEW-JERSEY--
MAY 21 TO MAY 22 TO MAY 23 TO
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1997 1997 1997
---------------------------------------------
<S> <C> <C> <C>
OPERATIONS, DIVIDENDS AND
CAPITAL SHARE ACTIVITY
Net investment income $ 25 26 25
- -----------------------------------------------------------------------------------------------------------
Dividends to shareholders from
net investment income (25) (26) (25)
- -----------------------------------------------------------------------------------------------------------
Capital share transactions (dollar amounts and number of
shares are the same):
Shares sold 6,073 4,151 8,366
- -----------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of dividends 25 26 24
- -----------------------------------------------------------------------------------------------------------
6,098 4,177 8,390
Shares redeemed (3,550) (1,358) (5,916)
- -----------------------------------------------------------------------------------------------------------
Net increase from capital share transactions and total
increase in net assets 2,548 2,819 2,474
- -----------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 100 100 100
- -----------------------------------------------------------------------------------------------------------
End of period $ 2,648 2,919 2,574
- -----------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE> 12
Investors Municipal Cash Fund 12
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. DESCRIPTION OF THE FUND
Investors Municipal Cash Fund (the Trust) is an open-end management investment
company organized as a business trust under the laws of Massachusetts currently
offering four series of shares. The Tax-Exempt New York Money Market Fund,
Investors Pennsylvania Municipal Cash Fund, Investors Florida Municipal Cash
Fund and Investors New Jersey Municipal Cash Fund (the Funds) invest in
short-term high quality municipal securities.
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 Fund'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 on investments.
EXPENSES
Expenses arising in connection with a Fund are allocated to that Fund. Other
Trust expenses are allocated among the Funds 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 Fund
determines its net asset value per share at 11:00 a.m. and 3:00 p.m. Chicago
time by dividing the total value of the Fund's investments and other assets,
less liabilities, by the number of Fund shares outstanding. Each Fund 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 Fund.
FEDERAL INCOME TAXES
Each Fund has complied with the special provisions of the Internal Revenue Code
available to investment companies during the period ended September 30, 1997.
3. TRANSACTIONS WITH AFFILIATES
MANAGEMENT AGREEMENT
The Trust has a management agreement with Zurich Kemper Investments, Inc. (ZKI)
and pays a management fee at an annual rate of .22% of the first $500 million of
average daily net assets declining to .15% of average daily net assets in excess
of $3 billion. During the period ended September 30, 1997, the Trust incurred
management fees of $81,000.
DISTRIBUTION AGREEMENT
The Trust has an administration, shareholder services and distribution agreement
with Zurich Kemper Distributors, Inc. (ZKDI). For its services as primary
distributor, the Trust pays ZKDI an annual fee of .50% of average daily net
assets of each Fund. For the period ended September 30, 1997, the Trust incurred
distribution fees of $183,000. ZKDI has related service agreements with various
firms to provide cash management and other services for Fund shareholders. Under
these agreements, ZKDI pays such firms based on the average daily net assets of
those accounts they maintain and service at an annual rate of .50% for each
Fund. During the period ended September 30, 1997, ZKDI paid fees
<PAGE> 13
Investors Municipal Cash Fund 13
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
of $173,000 to various firms pursuant to the related service agreements.
SHAREHOLDER SERVICES AGREEMENT
Pursuant to a services agreement with the Trust's transfer agent, Zurich Kemper
Service Company (ZKSvC) is the shareholder service agent of the Trust. Under the
agreement, ZKSvC received shareholder services fees of $34,000 for the period
ended September 30, 1997.
OFFICERS AND TRUSTEES
Certain officers or trustees of the Trust are also officers or directors of ZKI.
During the period ended September 30, 1997, the Trust made no payments to its
officers and incurred trustees' fees of $4,000 to independent trustees.
EXPENSE ABSORPTION
ZKI has agreed to temporarily waive its management fee and absorb operating
expenses to the extent that such expenses exceed .80% of the average daily net
assets of the New York Fund and .90% of the average daily net assets of each of
the Pennsylvania, Florida and New Jersey Funds. For the period ended September
30, 1997, ZKI absorbed $67,000 of expenses.
<PAGE> 14
Investors Municipal Cash Fund 14
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
SEPTEMBER 30, YEAR ENDED MARCH 31,
NEW YORK 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 .01 .03 .03 .02 .02
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00 1.00 1.00
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 1.49% 3.03 3.03 2.40 1.63
- -------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS AFTER EXPENSE ABSORPTION
(ANNUALIZED):
Expenses .80% .44 .80 .80 .80
- -------------------------------------------------------------------------------------------------------------------
Net investment income 2.93% 2.96 2.95 2.44 1.61
- -------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS BEFORE EXPENSE ABSORPTION
(ANNUALIZED):
Expenses .98% .96 1.14 1.15 1.25
- -------------------------------------------------------------------------------------------------------------------
Net investment income 2.75% 2.44 2.61 2.09 1.16
- -------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $86,712 60,575 18,527 14,090 10,762
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PENNSYLVANIA FLORIDA NEW JERSEY
------------- ------------- -------------
MAY 21 TO MAY 22 TO MAY 23 TO
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1997 1997 1997
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 1.00 1.00 1.00
- -----------------------------------------------------------------------------------------------------------
Net investment income and dividends declared .01 .01 .01
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00
- -----------------------------------------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) .96% .95 .87
- -----------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS AFTER EXPENSE ABSORPTION
(ANNUALIZED):
Expenses .89% .89 .90
- -----------------------------------------------------------------------------------------------------------
Net investment income 2.31% 2.82 2.57
- -----------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS BEFORE EXPENSE ABSORPTION
(ANNUALIZED):
Expenses 1.11% 1.11 1.12
- -----------------------------------------------------------------------------------------------------------
Net investment income 2.59% 2.60 2.35
- -----------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $2,648 2,919 2,574
- -----------------------------------------------------------------------------------------------------------
</TABLE>
Note: ZKI has agreed to temporarily waive its management fee and absorb certain
expenses of the Funds.
<PAGE> 15
Investors
Municipal
Cash Fund
Semiannual
Report
September 30, 1997
INVESTMENT MANAGER:
ZURICH KEMPER INVESTMENTS, INC.
PRINCIPAL UNDERWRITER:
ZURICH KEMPER DISTRIBUTORS, INC.
222 S. Riverside Plaza, Chicago, IL 60606
www.kemper.com
This report is not to be distributed unless preceded or
accompanied by a prospectus.
IMCF-3 1039190 10/97 (LOGO)printed on recycled paper
