<PAGE> 1
- --------------------------------------------------------------------------------
DEAR SHAREHOLDERS:
INVESTORS MUNICIPAL CASH FUND
- --------------------------------------------------------------------------------
We are pleased to provide you with the Investors Municipal Cash Fund
semiannual report for the six-month period ended September 30, 1998.
Your fund's management greatly appreciates your decision to invest in Investors
Municipal Cash Fund. During the period, the fund registered solid performance
and achieved its objective of providing maximum current income consistent with
stability of principal.
ECONOMIC REVIEW AND OUTLOOK
The log jam for Federal Funds set at 5.50% since March 1997 was broken on
September 29th when the Fed lowered its trading target by 25 basis points. The
predominant reasons were the much-publicized, adverse economic developments,
which are reflected in our volatile stock market, the associated stresses placed
on the credit worthiness of many of our financial institutions and the
likelihood of a slowing pace of economic growth in the months ahead.
Our investment strategy still favors lengthening of the maturities in the
portfolios. The reason is our expectation that the Fed will err on the side of
ease until signs of financial stress abate and prospects for economic growth
brighten.
Money market funds such as Investors Municipal Cash Fund offer the opportunity
for attractive yields and should continue to be an excellent place to invest
your money.
Your fund's management thanks you for the vote of confidence you have shown
through your investment and continues its dedication to performance. We look
forward to serving your investment needs for years to come.
Sincerely,
Frank J. Rachwalski
Frank Rachwalski
Vice President and Portfolio Manager
October 22, 1998
Frank Rachwalski is a Managing Director of Scudder Kemper Investments, Inc. and
Vice President and Lead 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, 1998 of 2.74% and a tax-equivalent yield of 4.85%.
Investors Pennsylvania Municipal Cash Fund had a net annualized yield for the
six months ended September 30, 1998 of 2.75% and a tax-equivalent yield of
4.50%.
Investors Florida Municipal Cash Fund had a net annualized yield for the six
months ended September 30, 1998 of 2.71% and a tax-equivalent yield of 4.31%.
Investors New Jersey Municipal Cash Fund had a net annualized yield for the six
months ended September 30, 1998 of 2.49% and a tax-equivalent yield of 4.23%.
Investors Michigan Municipal Cash Fund had a net annualized yield for the period
April 6, 1998 to September 30, 1998 of 2.87% and a tax-equivalent yield of
4.78%.
NOTES
Like all money funds, an investment in the funds is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the funds seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the funds.
Each fund's net annualized yield for the period ended September 30, 1998, 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. For Investors
Michigan Municipal Cash Fund, the tax-equivalent yield is based upon the fund's
yield and a 39.9% combined Federal and State of Michigan 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, 1998 (unaudited)
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
(A)VARIABLE RATE DEMAND SECURITIES
<S> <C>
New York State
Energy Research and Development Authority:
Brooklyn Union Gas Project
3.40% $ 4,480
Electric & Gas Corp. Project
4.05% 1,900
Niagara Mohawk Power Corp. Project
4.12% 10,900
Housing Finance Agency:
East 84th Street
3.45% 2,000
Hospital for Special Surgery
3.85% 960
Normandie Court I
3.30% 3,000
Trackside Homes Phase III
3.40% 195
250 West 50th Street
3.45% 1,500
Job Development Authority
3.32% 2,855
Local Government Assistance Corp.
3.25% 3,500
Medical Care Facilities Finance Agency:
Lenox Hill Hospital Project
3.30% 600
Pooled Equipment Loan Program
3.70% 300
- -----------------------------------------------------------
Babylon
Industrial Development Agency:
J. D'Addario Realty Co., Inc. Project
3.70% 2,000
Ogden Martin Systems Project
3.30% 4,000
- -----------------------------------------------------------
Franklin County
Industrial Development Agency
4.45% 5,300
- -----------------------------------------------------------
<CAPTION>
Value
<S> <C>
Long Island
Power Authority
4.10% $ 1,000
- -----------------------------------------------------------
New York City
General Obligation
4.09% 9,400
Health and Hospitals Corp.
3.33% 5,900
Housing Development Corp. :
Columbus Gardens Project
3.30% 3,800
Industrial Development Agency
3.85% 3,290
100 Jane Street
3.85% 3,400
West 43rd Street
3.35% 700
Municipal Water Finance Authority
4.15% 8,100
Trust for Cultural Resources
3.40% 1,500
- -----------------------------------------------------------
Niagara County
Industrial Development Agency
3.50% 4,000
- -----------------------------------------------------------
St. Lawrence County
Industrial Development Agency
3.40% 500
- -----------------------------------------------------------
Puerto Rico
Government Development Bank
3.13% 1,000
- -----------------------------------------------------------
TOTAL VARIABLE RATE DEMAND
SECURITIES--69.5%
(average maturity: 5 days) 86,080
- -----------------------------------------------------------
</TABLE>
<PAGE> 3
Investors Municipal Cash Fund 3
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
OTHER SECURITIES
<S> <C>
New York State
Bond Anticipation Notes
3.50% - 3.55%, 11/9/98 - 11/13/98 $ 6,500
Dormitory Authority:
Columbia University
3.50% - 3.55%, 10/14/98 - 11/12/98 4,845
Memorial Sloan-Kettering Cancer Center
3.35% - 3.50%, 10/15/98 - 11/13/98 4,300
General Obligation
3.55% - 3.60%, 11/9/98 - 11/10/98 8,000
Power Authority
3.45% - 3.55%, 10/7/98 - 10/15/98 6,000
- -----------------------------------------------------------
New York City
Municipal Water Finance Authority
3.60%, 11/9/98 1,400
- -----------------------------------------------------------
Long Island
Power Authority
3.35% - 3.55%, 10/20/98 - 10/22/98 5,000
- -----------------------------------------------------------
<CAPTION>
Value
<S> <C>
Nassau County
Revenue Anticipation Notes
3.60%, 4/13/99 $ 1,002
- -----------------------------------------------------------
TOTAL OTHER SECURITIES--29.9%
(average maturity: 21 days) 37,047
- -----------------------------------------------------------
TOTAL INVESTMENTS--99.4%
(average maturity: 14 days) 123,127
- -----------------------------------------------------------
CASH AND OTHER ASSETS,
LESS LIABILITIES--.6% 767
- -----------------------------------------------------------
NET ASSETS--100% $123,894
- -----------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 4
Investors Municipal Cash Fund 4
- -------------------------------------------------------------------------------
INVESTORS PENNSYLVANIA MUNICIPAL CASH FUND
Investments at September 30, 1998 (unaudited)
(Value in thousands)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
(A)VARIABLE RATE DEMAND SECURITIES
<S> <C>
Pennsylvania Obligations
- -----------------------------------------------------------
Pennsylvania State
Higher Education Assistance Agency
3.80% $ 100
Higher Education Facilities Authority
3.65% 100
- -----------------------------------------------------------
Allegheny County
Hospital Development Authority
4.05% 100
Industrial Development Authority
4.05% 100
- -----------------------------------------------------------
Chester County
Industrial Development Authority
3.85% 100
- -----------------------------------------------------------
Columbia County
Industrial Development Authority
4.80% 100
- -----------------------------------------------------------
Dallastown
Area School District
4.10% 100
- -----------------------------------------------------------
Dauphin County
General Authority
4.10% 100
- -----------------------------------------------------------
Delaware Valley
Regional Finance Authority
3.50% 100
- -----------------------------------------------------------
Emmaus
General Authority
3.60% 100
- -----------------------------------------------------------
Erie County
Hospital Authority
4.05% 100
- -----------------------------------------------------------
Gettysburg
Industrial Development Authority
3.65% 100
- -----------------------------------------------------------
Indiana County
Industrial Development Authority
3.65% 100
- -----------------------------------------------------------
<CAPTION>
Value
<S> <C>
Lehigh County
Industrial Development Authority
3.50% $ 100
- -----------------------------------------------------------
Northumberland County
Foster Wheeler Mount Carmel Project
4.05% 90
- -----------------------------------------------------------
Philadelphia
Authority for Industrial Development
4.90% 100
- -----------------------------------------------------------
Quakertown
Hospital Authority
3.75% 100
- -----------------------------------------------------------
Schuylkill County
Industrial Development Authority
3.55% 100
- -----------------------------------------------------------
Washington County
Higher Education Pooled Equipment Leasing Program
3.65% 100
- -----------------------------------------------------------
York County
Industrial Development Authority
3.90% 100
- -----------------------------------------------------------
Other Obligations
- -----------------------------------------------------------
Florida
St. Lucie County
Pollution Control Revenue
3.80% 200
- -----------------------------------------------------------
New York
Long Island
Power Authority
4.10% 200
New York City
General Obligation
4.25% 200
- -----------------------------------------------------------
Texas
Brazos River Authority
Pollution Control Revenue
4.25% 200
Sabine River Authority
Pollution Control Revenue
4.20% 200
- -----------------------------------------------------------
</TABLE>
<PAGE> 5
Investors Municipal Cash Fund 5
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
Puerto Rico
Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority
3.20% $ 100
- -----------------------------------------------------------
TOTAL VARIABLE RATE DEMAND
SECURITIES--95.4%
(average maturity: 5 days) 3,090
- -----------------------------------------------------------
OTHER SECURITIES
- -----------------------------------------------------------
Pennsylvania State
General Obligation
3.50%, 10/14/98 100
- -----------------------------------------------------------
Allegheny County
Industrial Development Authority
3.30%, 11/10/98 200
- -----------------------------------------------------------
Carbon County
Industrial Development Authority
3.60%, 11/13/98 600
- -----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Montgomery County
Industrial Development Authority
3.60%, 10/14/98 $ 100
- -----------------------------------------------------------
Venango
Industrial Development Authority
3.65%, 10/13/98 100
- -----------------------------------------------------------
TOTAL OTHER SECURITIES--34.0%
(average maturity: 35 days) 1,100
- -----------------------------------------------------------
TOTAL INVESTMENTS--129.4%
(average maturity: 13 days) 4,190
- -----------------------------------------------------------
LIABILITIES, LESS OTHER ASSETS--(29.4)% (954)
- -----------------------------------------------------------
NET ASSETS--100% $3,236
- -----------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 6
Investors Municipal Cash Fund 6
- --------------------------------------------------------------------------------
INVESTORS FLORIDA MUNICIPAL CASH FUND
Investments at September 30, 1998 (unaudited)
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
(A)VARIABLE RATE DEMAND SECURITIES
<S> <C>
FLORIDA OBLIGATIONS
- -----------------------------------------------------------
Florida State
Capital Projects Finance Authority
3.60% $ 200
- -----------------------------------------------------------
Alachua County
Industrial Development Authority
3.35% 200
- -----------------------------------------------------------
Broward County
Industrial Development Authority
4.35% 200
- -----------------------------------------------------------
Dade County
Aviation Facilities
3.50% 200
Industrial Development Authority
Dolphins Stadium Project
3.50% 200
Stephen Greene Project
3.65% 285
- -----------------------------------------------------------
Hillsborough County
Industrial Development Authority
3.60% 200
Pollution Control Revenue
3.90% 200
- -----------------------------------------------------------
Jacksonville
Industrial Development Authority
3.65% 200
- -----------------------------------------------------------
Lake Wales
Medical Centers Revenue
4.00% 200
- -----------------------------------------------------------
Orlando
Republic Drive Interchange Project
3.50% 200
- -----------------------------------------------------------
St. Lucie County
Pollution Control Revenue
3.80% 200
- -----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
OTHER OBLIGATIONS
- -----------------------------------------------------------
New York
New York City
General Obligation
4.25% $ 100
- -----------------------------------------------------------
Puerto Rico
Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority
3.20% 200
- -----------------------------------------------------------
TOTAL VARIABLE RATE DEMAND
SECURITIES--51.8%
(average maturity: 6 days) 2,785
- -----------------------------------------------------------
OTHER SECURITIES
Hillsborough County
Aviation Authority
3.60%, 10/21/98 500
- -----------------------------------------------------------
Jacksonville
Electric Authority
3.40% - 3.50%, 11/12/98 400
- -----------------------------------------------------------
Orlando
Capital Improvement Revenue
3.40% - 3.55%, 10/21/98 - 11/9/98 200
- -----------------------------------------------------------
Palm Beach County
Health Facilities Authority
3.40%, 10/8/98 200
- -----------------------------------------------------------
Sarasota County
Public Hospital District
3.55%, 11/13/98 200
- -----------------------------------------------------------
Sunshine State Governmental Financing Commission
3.60%, 10/13/98 700
- -----------------------------------------------------------
</TABLE>
<PAGE> 7
Investors Municipal Cash Fund 7
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
West Orange
Memorial Hospital Tax District
3.60%, 10/22/98 $ 200
- -----------------------------------------------------------
TOTAL OTHER SECURITIES--44.6%
(average maturity: 24 days) 2,400
- -----------------------------------------------------------
TOTAL INVESTMENTS--96.4%
(average maturity: 14 days) 5,185
- -----------------------------------------------------------
CASH AND OTHER ASSETS, LESS LIABILITIES--3.6% 193
- -----------------------------------------------------------
NET ASSETS--100% $5,378
- -----------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 8
Investors Municipal Cash Fund 8
- --------------------------------------------------------------------------------
INVESTORS NEW JERSEY MUNICIPAL CASH FUND
Investments at September 30, 1998 (unaudited)
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
(A)VARIABLE RATE DEMAND SECURITIES
<S> <C>
NEW JERSEY OBLIGATIONS
- -----------------------------------------------------------
New Jersey State
Economic Development Authority:
El Dorado Terminals Co.
3.90% $ 100
Epitaxx Inc. Project
4.63% 200
Foreign Trade Zone Project
4.10% 500
Four H Properties, Inc. Project
4.05% 200
400 International Drive Partners
4.10% 400
General Motors Project
3.10% 310
Hoffmann - La Roche Inc., Project
4.20% 200
National Utility Investors Corp. Project
3.90% 200
Natural Gas Co. Project
3.10% 200
Public Service Electric and Gas Co.
3.38% 200
Stolthaven Project
4.10% 600
Thermal Energy Facilities Revenue
3.30% 100
United Water, Inc. Project
4.00% 200
Healthcare Facilities Financing Authority
3.85% 300
Sports and Exposition
3.75% 200
Turnpike Authority
3.15% 300
- -----------------------------------------------------------
Essex County
Improvement Authority
3.10% 200
- -----------------------------------------------------------
Somerset County
Pollution Control Revenue
3.35% 200
- -----------------------------------------------------------
Union County
Pollution Control Revenue
3.87% 300
- -----------------------------------------------------------
OTHER OBLIGATIONS
- -----------------------------------------------------------
Florida
Hillsborough County
Industrial Development Authority
4.25% 100
- -----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Montana
Forsyth
Pollution Control Revenue
4.20% $ 100
- -----------------------------------------------------------
Texas
Sabine River Authority
Pollution Control Revenue
4.20% 200
- -----------------------------------------------------------
Puerto Rico
Government Development Bank
3.13% 100
Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing
Authority
3.20% 300
- -----------------------------------------------------------
TOTAL VARIABLE RATE DEMAND
SECURITIES--80.5%
(average maturity: 4 days) 5,710
- -----------------------------------------------------------
OTHER SECURITIES
New Jersey State
Building Authority Revenue
3.46%, 6/15/99 202
Economic Development Authority
3.40%, 11/13/98 300
Education Facilities Authority
3.15%, 12/17/98 300
Port Authority
3.40%, 11/10/98 - 11/12/98 315
- -----------------------------------------------------------
Salem County
Pollution Control Revenue
3.35%, 10/15/98 200
- -----------------------------------------------------------
TOTAL OTHER SECURITIES--18.5%
(average maturity: 80 days) 1,317
- -----------------------------------------------------------
TOTAL INVESTMENTS--99.0%
(average maturity: 18 days) 7,027
- -----------------------------------------------------------
CASH AND OTHER ASSETS, LESS LIABILITIES--1.0% 68
- -----------------------------------------------------------
NET ASSETS--100% $7,095
- -----------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 9
Investors Municipal Cash Fund 9
- --------------------------------------------------------------------------------
INVESTORS MICHIGAN MUNICIPAL CASH FUND
Investments at September 30, 1998 (unaudited)
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
(A)VARIABLE RATE DEMAND SECURITIES
<S> <C>
- -----------------------------------------------------------
Michigan State
Hospital Finance Authority
3.55% $ 1,200
Job Development Authority
Gordon Food Service, Inc., Project
4.00% 1,500
Kentwood Residence
3.40% 1,600
Strategic Fund
Alpha Technology Corp.
4.65% 1,500
Consumers Power Co. Project
4.10% 1,400
Continental Aluminum Project
4.15% 1,300
Creative Foam Corp. Project
3.95% 1,200
Detroit Edison Co.
4.20% 900
General Motors Corp. Project
3.65% 1,600
Hope Network, Inc. Project
4.05% 1,000
Thorn Apple Valley, Inc. Project
4.10% 2,000
Michigan State University General Revenue
3.70% 1,600
University of Michigan Hospitals
4.00% 500
- -----------------------------------------------------------
Bruce Township
Hospital Financial Authority
3.80% 1,600
- -----------------------------------------------------------
County of Wayne
Airport Revenue
3.55% 1,300
- -----------------------------------------------------------
Delta County
Economic Development Corp.
4.10% 1,900
- -----------------------------------------------------------
Farmington Hills
Economic Development Corp.
Brookfield Building Association
4.00% 1,400
Carrefour Corp.
4.13% 1,000
- -----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Genesee County
Economic Development Corp.
3.95% $ 1,000
- -----------------------------------------------------------
Grand Rapids
Water Supply Revenue
3.50% 2,600
- -----------------------------------------------------------
Puerto Rico
Government Development Bank
3.13% 1,300
Highway and Transportation Authority
3.10% 1,300
- -----------------------------------------------------------
TOTAL VARIABLE RATE DEMAND
SECURITIES--86.8%
(average maturity: 6 days) 30,700
- -----------------------------------------------------------
OTHER SECURITIES
Michigan State
Strategic Fund
3.55%, 11/13/98 - 11/17/98 3,100
University Regents
3.45%, 11/12/98 1,600
- -----------------------------------------------------------
TOTAL OTHER SECURITIES--13.3%
(average maturity: 45 days) 4,700
- -----------------------------------------------------------
TOTAL INVESTMENTS--100.1%
(average maturity: 11 days) 35,400
- -----------------------------------------------------------
LIABILITIES, LESS OTHER ASSETS--(.1)% (37)
- -----------------------------------------------------------
NET ASSETS--100% $35,363
- -----------------------------------------------------------
</TABLE>
NOTES TO PORTFOLIOS 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, 1998.
See accompanying Notes to Financial Statements.
<PAGE> 10
Investors Municipal Cash Fund 10
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1998 (unaudited)
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSETS NEW YORK PENNSYLVANIA FLORIDA NEW JERSEY MICHIGAN
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
Investments, at amortized cost $123,127 4,190 5,185 7,027 35,400
- -------------------------------------------------------------------------------------------------------------------------
Cash 504 -- 176 49 --
- -------------------------------------------------------------------------------------------------------------------------
Interest receivable 387 16 20 23 139
- -------------------------------------------------------------------------------------------------------------------------
Reimbursement from Adviser -- 4 -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Total assets 124,018 4,210 5,381 7,099 35,539
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
Cash overdraft -- 974 -- -- 104
- -------------------------------------------------------------------------------------------------------------------------
Payable for:
Dividends 10 -- -- 3 3
- -------------------------------------------------------------------------------------------------------------------------
Management fee 4 -- -- -- 5
- -------------------------------------------------------------------------------------------------------------------------
Distribution services fee 51 -- 2 1 54
- -------------------------------------------------------------------------------------------------------------------------
Trustees' fees and other 59 -- 1 -- 10
- -------------------------------------------------------------------------------------------------------------------------
Total liabilities 124 974 3 4 176
- -------------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $123,894 3,236 5,378 7,095 35,363
- -------------------------------------------------------------------------------------------------------------------------
THE PRICING OF SHARES
- -------------------------------------------------------------------------------------------------------------------------
Shares outstanding 123,894 3,236 5,378 7,095 35,363
- -------------------------------------------------------------------------------------------------------------------------
Net asset value and redemption price per share $1.00 1.00 1.00 1.00 1.00
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE> 11
Investors Municipal Cash Fund 11
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
Six months ended September 30, 1998 (unaudited)
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK PENNSYLVANIA FLORIDA NEW JERSEY MICHIGAN(A)
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INTEREST INCOME $1,992 60 110 105 560
- -------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fee 123 4 7 7 34
- -------------------------------------------------------------------------------------------------------------------------
Distribution services fee 284 8 15 16 54
- -------------------------------------------------------------------------------------------------------------------------
Custodian and transfer agent fees and related
expenses 63 2 6 5 11
- -------------------------------------------------------------------------------------------------------------------------
Reports to shareholders 18 -- 1 1 3
- -------------------------------------------------------------------------------------------------------------------------
Registration costs 23 6 5 6 8
- -------------------------------------------------------------------------------------------------------------------------
Professional fees 9 3 4 3 12
- -------------------------------------------------------------------------------------------------------------------------
Trustees' fees and other 32 1 1 -- 13
- -------------------------------------------------------------------------------------------------------------------------
Total expenses before expense waiver 552 24 39 38 135
- -------------------------------------------------------------------------------------------------------------------------
Less expenses waived by the investment
manager (101) (9) (12) (10) (19)
- -------------------------------------------------------------------------------------------------------------------------
Total expenses absorbed by the Fund 451 15 27 28 116
- -------------------------------------------------------------------------------------------------------------------------
Net investment income $1,541 45 83 77 444
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period from April 6, 1998 (commencement of operations) to September
30, 1998
<PAGE> 12
Investors Municipal Cash Fund 12
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK
-----------------------------
SIX MONTHS
ENDED YEAR
SEPTEMBER 30, ENDED
1998 MARCH 31,
(UNAUDITED) 1998
-----------------------------
<S> <C> <C>
OPERATIONS, DIVIDENDS AND
CAPITAL SHARE ACTIVITY
Net investment income $ 1,541 2,328
- -------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (1,541) (2,328)
- -------------------------------------------------------------------------------------------
Capital share transactions (dollar amounts and number of
shares are the same):
Shares sold 355,110 389,412
- -------------------------------------------------------------------------------------------
Shares issued in reinvestment of dividends 1,484 2,361
- -------------------------------------------------------------------------------------------
356,594 391,773
Shares redeemed (336,898) (348,150)
- -------------------------------------------------------------------------------------------
Net increase from capital share transactions and total
increase in net assets 19,696 43,623
- -------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 104,198 60,575
- -------------------------------------------------------------------------------------------
End of period $ 123,894 104,198
- -------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE> 13
Investors Municipal Cash Fund 13
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
(in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA FLORIDA NEW JERSEY MICHIGAN
-------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED MAY 21, ENDED MAY 22, ENDED MAY 23, APRIL 6 TO
SEPTEMBER 30, 1997 TO SEPTEMBER 30, 1997 TO SEPTEMBER 30, 1997 TO SEPTEMBER 30,
1998 MARCH 31, 1998 MARCH 31, 1998 MARCH 31, 1998
(UNAUDITED) 1998 (UNAUDITED) 1998 (UNAUDITED) 1998 (UNAUDITED)
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS, DIVIDENDS AND
CAPITAL SHARE ACTIVITY
Net investment income $ 45 67 83 117 77 91 444
- ----------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders
from net investment
income (45) (67) (83) (117) (77) (91) (444)
- ----------------------------------------------------------------------------------------------------------------------------
Capital share
transactions (dollar
amounts and number of
shares are the same):
Shares sold 9,688 14,257 24,913 41,975 30,375 29,234 54,431
- ----------------------------------------------------------------------------------------------------------------------------
Shares issued in
reinvestment of dividends 41 66 72 111 59 89 440
- ----------------------------------------------------------------------------------------------------------------------------
9,729 14,323 24,985 42,086 30,434 29,323 54,871
Shares redeemed (9,688) (11,228) (27,218) (34,575) (28,004) (24,758) (19,608)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
from capital share
transactions and total
increase (decrease) in
net assets 41 3,095 (2,233) 7,511 2,430 4,565 35,263
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 3,195 100 7,611 100 4,665 100 100
- ----------------------------------------------------------------------------------------------------------------------------
End of period $ 3,236 3,195 5,378 7,611 7,095 4,665 35,363
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 14
Investors Municipal Cash Fund 14
- --------------------------------------------------------------------------------
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 five series of shares. The Tax-Exempt New York Money Market Fund,
Investors Pennsylvania Municipal Cash Fund, Investors Florida Municipal Cash
Fund, Investors New Jersey Municipal Cash Fund and Investors Michigan 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'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 income to its shareholders. Accordingly, each Fund paid no
federal income taxes and no federal income tax provision was required.
3. TRANSACTIONS WITH AFFILIATES
MANAGEMENT AGREEMENT
The Funds have a management agreement with Scudder Kemper Investments, Inc.
(Scudder Kemper) and pay a monthly investment management fee of 1/12 of the
annual rate of .22% of the first $500 million of combined average daily net
assets declining to .15% of combined average daily net assets in excess of $3
billion. During the period ended September 30, 1998, the Funds incurred
management fees of $37,000, after an expense waiver by Scudder Kemper.
ZURICH/B.A.T MERGER
On September 7, 1998, Zurich Insurance Company (Zurich), majority owner of
Scudder Kemper, entered into an agreement with B.A.T Industries p.l.c. (B.A.T)
pursuant to which the financial services businesses of B.A.T were combined with
Zurich's businesses to form a new global insurance and financial services
company known as Zurich
<PAGE> 15
Investors Municipal Cash Fund 15
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Financial Services. Upon consummation of the transaction, the Funds' investment
management agreement with Scudder Kemper was deemed to have been assigned and,
therefore, terminated. The Board of Trustees of the Funds has approved a new
investment management agreement with Scudder Kemper, which is substantially
identical to the former investment management agreement, except for the dates of
execution and termination. The Board of Trustees of the Funds will seek
shareholder approval of the new investment management agreement through a proxy
solicitation that is currently scheduled to conclude in mid-December.
DISTRIBUTION AGREEMENT
The Funds have an administration, shareholder services and distribution
agreement with Kemper Distributors, Inc. (KDI). For its services as primary
distributor, the Funds pay KDI an annual fee of .50% of average daily net assets
of each Fund, except for the Michigan Fund, which pays .35% of its average daily
net assets. For the period ended September 30, 1998, the Funds incurred
distribution fees of $364,000, after an expense waiver by Scudder Kemper. KDI
has related service agreements with various firms to provide cash management and
other services for Fund shareholders. Under these agreements, KDI 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, except for the Michigan Fund,
for which it pays firms at an annual rate of .35%. During the period ended
September 30, 1998, KDI paid fees of $362,000 to various firms pursuant to the
related service agreements.
SHAREHOLDER SERVICES AGREEMENT
Pursuant to a services agreement with the Trust's transfer agent, Kemper Service
Company (KSvC) is the shareholder service agent of the Trust. Under the
agreement, KSvC received shareholder services fees of $77,000 for the period
ended September 30, 1998.
OFFICERS AND TRUSTEES
Certain officers or trustees of the Trust are also officers or directors of
Scudder Kemper. During the period ended September 30, 1998, the Trust made no
payments to its officers and incurred trustees' fees of $6,000 to independent
trustees.
EXPENSE ABSORPTION
Scudder Kemper has agreed to temporarily waive a portion of its management fee
and absorb operating expenses to the extent that such expenses exceed .75% of
the average daily net assets of the Michigan Fund, .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, 1998, Scudder Kemper waived and absorbed $151,000 of expenses.
<PAGE> 16
Investors Municipal Cash Fund 16
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
SEPTEMBER 30, YEAR ENDED MARCH 31,
NEW YORK 1998 1998 1997 1996 1995
- -------------------------------------------------------------------------------------------------------------------
<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 .01 .03 .03 .03 .02
- -------------------------------------------------------------------------------------------------------------------
Less dividends declared .01 .03 .03 .03 .02
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00 1.00 1.00
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 1.38% 2.90 3.03 3.03 2.40
- -------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS AFTER EXPENSE WAIVER
(ANNUALIZED):
Expenses .80% .80 .44 .80 .80
- -------------------------------------------------------------------------------------------------------------------
Net investment income 2.74% 2.83 2.96 2.95 2.44
- -------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS BEFORE EXPENSE WAIVER
(ANNUALIZED):
Expenses .98% .98 .96 1.14 1.15
- -------------------------------------------------------------------------------------------------------------------
Net investment income 2.56% 2.65 2.44 2.61 2.09
- -------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $123,894 104,198 60,575 18,527 14,090
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PENNSYLVANIA FLORIDA NEW JERSEY
---------------------------- ---------------------------- ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED MAY 21, 1997 ENDED MAY 22, 1997 ENDED MAY 23, 1997
SEPTEMBER 30, TO MARCH 31, SEPTEMBER 30, TO MARCH 31, SEPTEMBER 30, TO MARCH 31,
1998 1998 1998 1998 1998 1998
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <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 1.00
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income .01 .02 .01 .02 .01 .02
- ------------------------------------------------------------------------------------------------------------------------------
Less dividends declared .01 .02 .01 .02 .01 .02
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 1.39% 2.42 1.36 2.41 1.26 2.22
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS AFTER
EXPENSE WAIVER (ANNUALIZED):
Expenses .90% .90 .90 .90 .90 .90
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income 2.74% 2.76 2.71 2.74 2.45 2.55
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
BEFORE EXPENSE WAIVER
(ANNUALIZED):
Expenses 1.42% 1.11 1.29 .99 1.22 1.12
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income 2.22% 2.55 2.32 2.65 2.13 2.33
- ------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period (in
thousands) $3,236 3,195 5,378 7,611 7,095 4,665
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
MICHIGAN
--------------
APRIL 6 TO
SEPTEMBER 30,
1998
- -----------------------------------------------
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of
period 1.00
- -----------------------------------------------
Net investment income .01
- -----------------------------------------------
Less dividends declared .01
- -----------------------------------------------
Net asset value, end of period 1.00
- -----------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 1.20
- -----------------------------------------------
RATIOS TO AVERAGE NET ASSETS AFTER
EXPENSE WAIVER (ANNUALIZED):
Expenses .75
- -----------------------------------------------
Net investment income 2.88
- -----------------------------------------------
RATIOS TO AVERAGE NET ASSETS
BEFORE EXPENSE WAIVER
(ANNUALIZED):
Expenses .87
- -----------------------------------------------
Net investment income 2.76
- -----------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period (in
thousands) 35,363
- -----------------------------------------------
</TABLE>
Note: Scudder Kemper has agreed to temporarily waive a portion of its management
fee and absorb certain expenses of the Funds. Data for the period ended
September 30, 1998 is unaudited.
<PAGE> 17
Investors
Municipal
Cash Fund
Semiannual
Report
September 30, 1998
PRINCIPAL UNDERWRITER:
KEMPER DISTRIBUTORS, INC.
222 S. Riverside Plaza,
Chicago, IL 60606
This report is not to be distributed unless preceded or
accompanied by an Investors Municipal Cash Fund
prospectus.
IMCF-3 1059020 10/98 (LOGO)printed on recycled paper
