<PAGE> 1
Investors Municipal Cash Fund
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DEAR SHAREHOLDER:
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We appreciate your decision to invest in Investors Municipal Cash
Fund. The Fund series includes:
- Tax-Exempt New York Money Market Fund
- Investors Pennsylvania Municipal Cash Fund
- Investors Florida Municipal Cash Fund
- Investors New Jersey Municipal Cash Fund
- Investors Michigan Municipal Cash Fund
To provide you with an update of holdings and financial highlights, on the
following pages you'll find the Fund's semiannual report for the six-month
period ended September 30, 1999.
Briefly, for the past six months each Fund registered solid performance and
achieved its objective of providing maximum current income that is exempt from
Federal and, where applicable, state income taxes, 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
each Investors Municipal Cash Fund's average maturity, although we will look for
attractive opportunities to extend maturities, and enhance performance.
Rest assured that the Funds' management is dedicated to achieving each Fund's
objective. Given the conditions stated above and our strategy, Investors
Municipal Cash Fund 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 Municipal Cash Fund. 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 Municipal Cash Fund.
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
Annualized Equivalent
Net Yield Taxable Yield
---------- -------------
<S> <C> <C>
Tax-Exempt New York Money
Market Fund 2.35% 4.28%
Investors Pennsylvania
Municipal Cash Fund 2.37% 3.88%
Investors Florida Municipal
Cash Fund 2.35% 3.74%
Investors New Jersey Municipal
Cash Fund 2.17% 3.69%
Investors Michigan Municipal
Cash Fund 2.55% 4.24%
</TABLE>
NOTES
Each fund's 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.
The equivalent taxable yield allows you to compare the fund with the performance
of taxable money market funds. For Tax-Exempt New York Money Market Fund, the
equivalent taxable yield is based upon the fund's yield and a combined Federal
and State of New York and New York City marginal income tax rate of 45.06%. For
Investors Pennsylvania Municipal Cash Fund, the equivalent taxable yield is
based upon the fund's yield and a combined Federal and State of Pennsylvania
marginal income tax rate of 38.9%. The Investors Florida Municipal Cash Fund,
the equivalent taxable yield is based upon the fund's yield and a 37.1% Federal
income tax rate. For Investors New Jersey Municipal Cash Fund, the equivalent
taxable yield is based upon the fund's yield and a combined Federal and State of
New Jersey marginal income tax rate of 41.1%. For Investors Michigan Municipal
Cash Fund, the equivalent taxable yield is based upon the fund's yield and a
combined Federal and State of Michigan marginal income tax rate of 39.9%. Income
may be subject to local taxes and for some investors, the alternative minimum
tax.
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 Municipal Cash Fund 2
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TAX-EXEMPT NEW YORK MONEY MARKET FUND
Investments at September 30, 1999 (unaudited)
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
(A)VARIABLE RATE DEMAND SECURITIES
<S> <C>
New York State
Dormitory Authority
3.90% $ 4,000
Energy Research and Development Authority:
Brooklyn Union Gas Project
3.70% 7,525
Electric & Gas Corp. Project
3.70% 500
Niagara Mohawk Power Corp. Project
3.90% 1,050
Housing Finance Agency:
Hospital for Special Surgery
3.75% 960
Normandie Court I
3.70% 4,500
Sixth Avenue
3.60% 9,000
East 84th Street
3.70% 7,500
Job Development Authority
3.25%-3.90% 7,035
Local Government Assistance Corp.
3.65% 2,400
Medical Care Facilities Finance Agency
3.60% 1,600
- --------------------------------------------------------------------------------
Babylon
Industrial Development Agency:
J. D'Addario Realty Co., Inc. Project
3.80% 1,900
Ogden Martin Systems Project
3.60% 6,000
- --------------------------------------------------------------------------------
Long Island
Power Authority
3.65% 2,000
New York City
General Obligation
3.65%-3.95% 8,300
Health and Hospitals Corp.
3.65%-3.70% 17,680
Housing Development Corp.:
Columbus Gardens Project
3.60% 3,800
Jennings Street
3.80% 2,000
Trust for Cultural Resources
3.75% 1,700
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Niagara County
Industrial Development Agency
3.85% $ 9,500
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St. Lawrence County
Industrial Development Agency
3.65% 500
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TOTAL VARIABLE RATE DEMAND
SECURITIES--52.4%
(average maturity: 6 days) 99,450
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OTHER SECURITIES
New York State
Dormitory Authority
Columbia University
3.30%-3.55%, 10/19/99-11/12/99 9,000
General Obligation
3.20%-3.55%, 10/14/99-2/9/00 19,500
Metropolitan Transportation Authority
3.20%-3.55%, 10/12/99-2/16/00 14,000
Power Authority
3.35%-3.55%, 10/8/99-11/9/99 22,000
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</TABLE>
<PAGE> 3
Investors Municipal Cash Fund 3
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<TABLE>
<CAPTION>
Value
<S> <C>
Long Island
Power Authority
3.45%-3.60%, 11/10/99-11/17/99 $ 7,000
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New York City
General Obligation
3.30%, 10/13/99 1,000
Municipal Water Finance Authority
3.35%-3.75%, 10/1/99-12/23/99 15,700
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Nassau County
Tax Anticipation Notes
3.50%, 12/22/99 2,002
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
TOTAL OTHER SECURITIES--47.6%
(average maturity: 41 days) $ 90,202
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TOTAL INVESTMENTS--100%
(average maturity: 23 days) $189,652
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</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 4
Investors Municipal Cash Fund 4
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INVESTORS PENNSYLVANIA MUNICIPAL CASH FUND
Investments at September 30, 1999 (unaudited)
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
(A)VARIABLE RATE DEMAND SECURITIES
<S> <C>
PENNSYLVANIA OBLIGATIONS
- --------------------------------------------------------------------------------
Pennsylvania State
Higher Education Assistance Agency
3.90% $ 800
Higher Education Facilities Authority
3.85% 415
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Allegheny County
Industrial Development Authority
Environmental Improvements Revenue
3.80% 100
Eye & Ear Properties Corp.
3.85% 100
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Allentown
Hospital Authority Revenue
3.85% 100
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Bucks County
Industrial Development Authority
3.90% 200
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Cambria County
Industrial Development Authority
3.80% 300
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Chester County
Industrial Development Authority
4.00% 100
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Dallastown
School District Revenue
3.85% 100
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Dauphin County
General Authority Revenue
3.85% 100
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Delaware Valley
Regional Financing Authority
3.70% 400
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Emmaus
General Authority Revenue
3.80% 200
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Erie County
Hospital Authority
3.85% 100
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Gettysburg
Industrial Development Authority
3.85% 100
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Gettysburg
Area Industrial Development
3.80% $ 400
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Indiana County
Industrial Development Authority
3.75% 100
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Lancaster County
Hospital Authority Revenue
3.87% 300
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Lehigh County
General Purpose Authority
3.75% 400
Industrial Development Authority
3.40% 160
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Northumberland County
Industrial Development Authority
3.90% 140
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Philadelphia
Hospital and Higher Education Facilities Authority
3.90% 300
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Pittsburgh
University of Pittsburgh
3.65% 400
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Quakertown
Hospital Authority
3.90% 100
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Schuylkill County
Industrial Development Authority
3.70% 400
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Venango
Industrial Development Authority
3.90% 285
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Washington County
Higher Education Pooled Equipment Leasing Program
3.85% 400
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</TABLE>
<PAGE> 5
5
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Investors Municipal Cash Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
York County
Industrial Development Authority
3.75% $ 100
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OTHER OBLIGATIONS
- --------------------------------------------------------------------------------
Puerto Rico
Government Development Bank
3.10% 100
Highway and Transportation Authority
3.45% 100
Higher Education Facilities Authority
3.70% 100
- --------------------------------------------------------------------------------
TOTAL VARIABLE RATE DEMAND
SECURITIES--73.4%
(average maturity: 4 days) 6,900
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OTHER SECURITIES
- --------------------------------------------------------------------------------
Pennsylvania State
General Obligation, 1997A
3.35%, 10/20/99 400
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Allegheny County
Industrial Development Authority
3.60%, 11/09/99 600
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Carbon County
Industrial Development Authority
3.45%-3.65%, 10/14/99-11/12/99 $ 800
- --------------------------------------------------------------------------------
Delaware County
Industrial Development Authority
3.60%, 11/10/99 300
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Montgomery County
Industrial Development Authority
3.20%-3.35%, 10/08/99-10/20/99 300
- --------------------------------------------------------------------------------
Philadelphia
Tax and Revenue Anticipation Notes, Series A
4.25%, 6/30/2000 101
- --------------------------------------------------------------------------------
TOTAL OTHER SECURITIES--26.6%
(average maturity: 38 days) 2,501
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100%
(average maturity: 15 days) $9,401
- --------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 6
Investors Municipal Cash Fund 6
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INVESTORS FLORIDA MUNICIPAL CASH FUND
Investments at September 30, 1999 (unaudited)
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
(A) VARIABLE RATE DEMAND SECURITIES
<S> <C>
FLORIDA OBLIGATIONS
- --------------------------------------------------------------------------------
Florida State
Capital Projects Financing Authority
3.75% $ 200
Gulf Breeze
3.85% 620
Municipal Power Agency
3.75% 300
- --------------------------------------------------------------------------------
Alachua County
City Health Facilities Authority
3.30%-3.77% 1,350
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Broward County
Industrial Development Authority
3.95% 195
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Citrus Park
Community Development Authority
3.75% 300
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Collier County
Health Facilities Authority
3.80% 900
- --------------------------------------------------------------------------------
Dade County
Aviation Facilities
3.75% 330
Industrial Development Authority:
Dolphins Stadium Project
3.75% 1,050
Spectrum Programs, Inc. Project
3.85% 775
Water and Sewer System Revenue
3.65% 900
- --------------------------------------------------------------------------------
Escambia County
Health Facilities Authority
3.35% 250
- --------------------------------------------------------------------------------
Hillsborough County
Industrial Development Authority
Development Revenue
3.95% 800
Tampa Electric Co. Project
3.75% 2,900
- --------------------------------------------------------------------------------
Jacksonville
Health Facilities Authority
3.85% 500
Industrial Development Authority
3.75% 1,100
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Lake Wales
Medical Centers Revenue
4.05% $ 400
- --------------------------------------------------------------------------------
Orange County
Health Facilities Authority:
Adventist Health System
3.85% 500
Presbyterian Retirement Project
3.85% 300
- --------------------------------------------------------------------------------
Orlando
Republic Drive Interchange Project
3.75% 700
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Pinellas County
Health Facilities Authority
3.08% 1,100
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Putnam County
Development Authority Revenue
3.85% 480
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St. Lucie County
Pollution Control Revenue
3.80% 1,100
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OTHER OBLIGATIONS
- --------------------------------------------------------------------------------
Michigan
Strategic Fund
3.95% 300
- --------------------------------------------------------------------------------
New York
Job Development Authority
3.90% 100
- --------------------------------------------------------------------------------
Puerto Rico
Highway and Transportation Authority
3.45% 300
- --------------------------------------------------------------------------------
<CAPTION>
TOTAL VARIABLE RATE DEMAND
<S> <C>
SECURITIES--70.8%
(average maturity: 3 days) 17,750
- --------------------------------------------------------------------------------
</TABLE>
<PAGE> 7
7
- --------------------------------------------------------------------------------
Investors Municipal Cash Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
OTHER SECURITIES
Florida State
Municipal Power Agency
3.40%, 10/20/99 $ 700
- --------------------------------------------------------------------------------
Hillsborough County
Aviation Authority
3.65%, 11/12/99 1,000
- --------------------------------------------------------------------------------
Jacksonville
Electric Authority
3.60%-3.65%, 10/25/99-11/12/99 2,100
- --------------------------------------------------------------------------------
Orlando
Capital Improvement Revenue
3.45%-3.50%, 10/15/99-11/12/99 1,100
- --------------------------------------------------------------------------------
Palm Beach County
Health Facilities Authority
3.40%, 10/13/99 200
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Pinellas County
Educational Facilities
3.35%, 10/7/99 $ 1,000
- --------------------------------------------------------------------------------
Sarasota County
Public Hospital District
3.35%, 10/14/99 200
- --------------------------------------------------------------------------------
Sunshine State Governmental Financing Commission
3.40%-3.60%, 10/14/99-11/10/99 1,015
- --------------------------------------------------------------------------------
TOTAL OTHER SECURITIES--29.2%
(average maturity: 28 days) 7,315
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100%
(average maturity: 11 days) $25,065
- --------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 8
Investors Municipal Cash Fund 8
- --------------------------------------------------------------------------------
INVESTORS MICHIGAN MUNICIPAL CASH FUND
Investments at September 30, 1999 (unaudited)
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
(A) VARIABLE RATE DEMAND SECURITIES
<S> <C>
Michigan State
Higher Education Authority
3.75% $ 400
Hospital Financing Authority
3.85% 400
Housing Development Authority
3.80% 400
Job Development Authority
Gordon Food Service, Inc. Project
3.75% 400
Kenwood Residence
3.50% 400
Strategic Fund
Consumers Power Co. Project
3.85% 300
Continental Aluminum Project
3.85% 400
Creative Foam Corp. Project
4.00% 400
Detroit Edison Co.
3.95% 400
General Motors Corp. Project
3.85% 400
Hope Network, Inc. Project
3.85% 400
University of Michigan Hospitals
3.80% 300
- --------------------------------------------------------------------------------
Cornell Township
Economic Development Corp.
3.75% 100
- --------------------------------------------------------------------------------
County of Wayne
Airport Revenue
3.75% 400
- --------------------------------------------------------------------------------
Delta County
Economic Development Corp.
3.80%-3.90% 800
- --------------------------------------------------------------------------------
Detroit
Sewage Revenue
3.85% 400
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Farmington Hills
Economic Development Authority
4.05% $ 365
- --------------------------------------------------------------------------------
Genesee County
Economic Development Authority
4.00% 400
- --------------------------------------------------------------------------------
Grand Rapids
Water Supply Revenue
3.80% 400
- --------------------------------------------------------------------------------
Oakland County
Economic Development Corp.
3.85% 200
- --------------------------------------------------------------------------------
TOTAL VARIABLE RATE DEMAND
SECURITIES--76.2%
(average maturity: 6 days) 7,665
- --------------------------------------------------------------------------------
OTHER SECURITIES
Michigan State
Strategic Fund Limited Obligation
3.40%-3.65%, 10/19/99-02/10/2000 1,000
University of Michigan Regents
3.40%, 10/14/99-10/18/99 1,000
- --------------------------------------------------------------------------------
Cornell Township
Economic Development Corp.
3.55%, 11/13/99 400
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TOTAL OTHER SECURITIES--23.8%
(average maturity: 44 days) 2,400
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.0%
(average maturity: 15 days) $10,065
- --------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
<PAGE> 9
Investors Municipal Cash Fund 9
- --------------------------------------------------------------------------------
INVESTORS NEW JERSEY MUNICIPAL CASH FUND
Investments at September 30, 1999 (unaudited)
(Value in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
(A)VARIABLE RATE DEMAND SECURITIES
<S> <C>
NEW JERSEY OBLIGATIONS
- --------------------------------------------------------------------------------
New Jersey State
Economic Development Authority:
AIRIS Newark Project
3.80% $ 600
El Dorado Terminals Co.
3.85% 100
Four H Properties, Inc. Project
4.00% 600
400 International Drive Partners
3.80% 2,600
General Motors Project
3.19% 905
Hoffmann - La Roche Inc., Project
3.95% 200
National Utility Investors Corp. Project
3.70% 700
Natural Gas Co. Project
3.55% - 3.80% 1,000
Public Service Electric and Gas Co.
3.40% 1,300
Stolthaven Project
3.85% 1,300
Thermal Energy Facilities Revenue
3.75% 100
Healthcare Facilities Financing Authority:
Hospital Capital Asset Financing
3.60% 600
Pascack Community Services
3.70% 300
Sports and Exposition Authority
3.75% 1,145
Turnpike Authority
3.65% 700
- --------------------------------------------------------------------------------
Somerset County
Pollution Control Revenue
3.40% 1,200
- --------------------------------------------------------------------------------
Union County
Pollution Control Revenue
3.30% - 3.70% 1,000
- --------------------------------------------------------------------------------
OTHER OBLIGATIONS
- --------------------------------------------------------------------------------
Alaska
Valdez
Exxon Pipeline Co. Project
3.75% 200
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
California
Los Angeles
Regional Airport Improvement Corp.
3.85% $ 200
- --------------------------------------------------------------------------------
District of Columbia
General Obligation
4.00% 700
- --------------------------------------------------------------------------------
Florida
Collier County
Cleveland Clinic Health System
3.80% 200
Hillsborough County
Industrial Development Authority
3.95% 100
- --------------------------------------------------------------------------------
New York
Niagara
Mohawk Power Corp.
4.20% 200
- --------------------------------------------------------------------------------
Ohio
Air Quality Development Authority
3.75% 400
Solid Waste Revenue
4.00% 300
- --------------------------------------------------------------------------------
Texas
Harris County
Health Facilities Development Corp.
3.80% 500
- --------------------------------------------------------------------------------
Puerto Rico
Highway and Transportation Authority
3.45% 300
Higher Educational Financing Authority
3.70% 300
- --------------------------------------------------------------------------------
TOTAL VARIABLE RATE DEMAND
SECURITIES--67.3%
(average maturity: 4 days) 17,750
- --------------------------------------------------------------------------------
</TABLE>
<PAGE> 10
Investors Municipal Cash Fund 10
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C>
OTHER SECURITIES
New Jersey State
Economic Development Authority
3.15% - 3.25%, 10/13/99 $ 900
General Obligation
5.10%, 2/15/00 754
Transportation Trust Fund
5.00%, 12/15/99 502
Transportation Trust Fund
3.45%, 11/12/99 1,000
- --------------------------------------------------------------------------------
Salem County
Pollution Control Revenue
3.25% - 3.50%, 10/13/99 - 11/8/99 3,200
- --------------------------------------------------------------------------------
Union County
Import Authority Correctional Facility
3.60%, 6/15/00 1,013
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
<S> <C>
Puerto Rico
Government Development Bank
3.00% - 3.40%, 10/7/99 - 2/16/00 $ 1,271
- --------------------------------------------------------------------------------
TOTAL OTHER SECURITIES--32.7%
(average maturity: 70 days) 8,640
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100%
(average maturity: 25 days) $26,390
- --------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Portfolios of Investments.
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, 1999.
See accompanying Notes to Financial Statements.
<PAGE> 11
INVESTORS MUNICIPAL CASH FUND
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
NEW YORK PENNSYLVANIA FLORIDA NEW JERSEY MICHIGAN
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
ASSETS
- -------------------------------------------------------------------------------------------------------------------------
Investments, at amortized cost $189,652 9,401 25,065 26,390 10,065
- -------------------------------------------------------------------------------------------------------------------------
Cash 741 -- 18 -- 71
- -------------------------------------------------------------------------------------------------------------------------
Interest receivable 546 31 87 97 38
- -------------------------------------------------------------------------------------------------------------------------
Receivable for investments sold 300 -- 55 200 70
- -------------------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 2,580 173 465 729 139
- -------------------------------------------------------------------------------------------------------------------------
Reimbursement from Adviser -- 7 -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Other assets -- 12 -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Total assets 193,819 9,624 25,690 27,416 10,383
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
Cash overdraft -- 99 -- 21 --
- -------------------------------------------------------------------------------------------------------------------------
Payable for:
Dividends -- 1 2 2 1
- -------------------------------------------------------------------------------------------------------------------------
Fund shares redeemed 2,516 114 461 721 126
- -------------------------------------------------------------------------------------------------------------------------
Securities purchased -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Management fee 7 -- 7 4 --
- -------------------------------------------------------------------------------------------------------------------------
Distribution services fee 82 -- 10 16 77
- -------------------------------------------------------------------------------------------------------------------------
Custodian and transfer fee and related
expense 33 3 6 6 --
- -------------------------------------------------------------------------------------------------------------------------
Trustees' fees and other 66 3 -- 3 22
- -------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,704 220 486 773 226
- -------------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $191,115 9,404 25,204 26,643 10,157
- -------------------------------------------------------------------------------------------------------------------------
THE PRICING OF SHARES
- -------------------------------------------------------------------------------------------------------------------------
Shares outstanding 191,115 9,404 25,204 26,643 10,157
- -------------------------------------------------------------------------------------------------------------------------
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.
11
<PAGE> 12
INVESTORS MUNICIPAL CASH FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1999 (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
NEW YORK PENNSYLVANIA FLORIDA NEW JERSEY MICHIGAN
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INTEREST INCOME $2,979 142 370 335 644
- -------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fee 208 10 25 24 43
- -------------------------------------------------------------------------------------------------------------------------
Distribution services fee 440 22 57 55 68
- -------------------------------------------------------------------------------------------------------------------------
Custodian and transfer agent fees and related
expenses 154 21 25 24 34
- -------------------------------------------------------------------------------------------------------------------------
Reports to shareholders 18 5 1 2 5
- -------------------------------------------------------------------------------------------------------------------------
Registration costs 2 8 8 8 2
- -------------------------------------------------------------------------------------------------------------------------
Auditing 27 2 4 3 7
- -------------------------------------------------------------------------------------------------------------------------
Legal 8 2 2 2 7
- -------------------------------------------------------------------------------------------------------------------------
Trustees' fees and other 33 8 2 2 4
- -------------------------------------------------------------------------------------------------------------------------
Total expenses before expense waiver 890 78 124 120 170
- -------------------------------------------------------------------------------------------------------------------------
Less expenses waived by the investment manager (138) (39) (21) (22) (23)
- -------------------------------------------------------------------------------------------------------------------------
Total expenses absorbed by the fund 752 39 103 98 147
- -------------------------------------------------------------------------------------------------------------------------
Net investment income 2,227 103 267 237 497
- -------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) ON INVESTMENT
TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------------
Net realized loss from investments -- -- -- -- (203)
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $2,227 103 267 237 294
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 13
INVESTORS MUNICIPAL CASH FUND
STATEMENT OF CHANGES IN NET ASSETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
NEW YORK PENNSYLVANIA
------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
SEPTEMBER 30, ENDED SEPTEMBER 30, ENDED
1999 MARCH 31, 1999 MARCH 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
- --------------------------------------------------------------------------------------------------------------------------
OPERATIONS, DIVIDENDS AND
CAPITAL SHARE ACTIVITY
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income $ 2,227 3,253 $ 103 97
- --------------------------------------------------------------------------------------------------------------------------
Net realized loss from investments -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 2,227 3,253 103 97
- --------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (2,227) (3,253) (103) (97)
- --------------------------------------------------------------------------------------------------------------------------
Capital share transactions (dollar amounts and number of
shares are the same):
Shares sold 453,920 822,159 39,792 33,397
- --------------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of dividends 1,868 3,177 81 90
- --------------------------------------------------------------------------------------------------------------------------
455,788 825,336 39,873 33,487
Shares redeemed (449,170) (745,037) (36,472) (30,679)
- --------------------------------------------------------------------------------------------------------------------------
Net increase from capital share transactions 6,618 80,299 3,401 2,808
- --------------------------------------------------------------------------------------------------------------------------
Capital contribution from Scudder Kemper (See Note 3) -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 6,618 80,299 3,401 2,808
- --------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 184,497 104,198 6,003 3,195
- --------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $ 191,115 184,497 $ 9,404 6,003
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
13
<PAGE> 14
INVESTORS MUNICIPAL CASH FUND
STATEMENT OF CHANGES IN NET ASSETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FLORIDA NEW JERSEY MICHIGAN
---------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED APRIL 6,
SEPTEMBER 30, ENDED SEPTEMBER 30, ENDED SEPTEMBER 30, 1998 TO
1999 MARCH 31, 1999 MARCH 31, 1999 MARCH 31,
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
- ---------------------------------------------------------------------------------------------------------------------------
OPERATIONS, DIVIDENDS AND
CAPITAL SHARE ACTIVITY
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income $ 267 215 237 188 497 854
- ---------------------------------------------------------------------------------------------------------------------------
Net realized loss from investments -- -- -- -- (203) --
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 267 215 237 188 294 854
- ---------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net
investment income (267) (215) (237) (188) (497) (854)
- ---------------------------------------------------------------------------------------------------------------------------
Capital share transactions (dollar
amounts and number of shares are the
same):
Shares sold 91,172 83,792 95,875 71,537 52,096 83,345
- ---------------------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment of
dividends 258 197 232 168 440 850
- ---------------------------------------------------------------------------------------------------------------------------
91,430 83,989 96,107 71,705 52,536 84,195
Shares redeemed (86,680) (71,146) (84,794) (61,040) (78,004) (48,670)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase from capital share
transactions 4,750 12,843 11,313 10,665 (25,468) 35,525
- ---------------------------------------------------------------------------------------------------------------------------
Capital contribution from Scudder
Kemper (See Note 3) -- -- -- -- 203 --
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 4,750 12,843 11,313 10,665 (25,468) 35,525
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 20,454 7,611 15,330 4,665 35,625 100
- ---------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $ 25,204 20,454 26,643 15,330 10,157 35,625
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE> 15
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF
THE FUND Investors Municipal Cash Fund (the "trust") is
registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), as an open end management
investment company organized as a Massachusetts
business trust.
The trust currently offers 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.
Each 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 funds in the preparation of their
financial statements.
2. SIGNIFICANT
ACCOUNTING
POLICIES SECURITY VALUATION. Each fund values all portfolio
securities utilizing the Mortized cost method permitted
in accordance with Rule 2a-7 under the 1940 Act and
pursuant to which the funds 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.
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 tax-exempt
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 each 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.
Realized gains and losses from investment transactions
are recorded on an identified cost basis.
All premiums are amortized for both tax and financial
reporting.
EXPENSES. Expenses arising in connection with a
specific fund are allocated to that fund. Other trust
expenses are allocated between the funds in proportion
to their relative net assets.
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, 1999, the funds incurred management fees
of $97,000, after an expense waiver by Scudder Kemper.
DISTRIBUTION AGREEMENT The funds have an
administration, shareholder services and distribution
agreement with Kemper
15
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS
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, 1999, the
funds incurred distribution fees of $620,000, 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%. KDI may pay certain
firms additional amounts.
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 $206,000 for the period
ended September 30, 1999.
OFFICERS AND TRUSTEES. Certain officers or trustees of
the trust are also officers or directors of Scudder
Kemper. During the period ended September 30, 1999, the
trust made no payments to its officers and incurred
trustees' fees of $11,000 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, 1999,
Scudder Kemper waived and absorbed $243,000 of
expenses.
CAPITAL CONTRIBUTION On April 15, 1999 Scudder Kemper
purchased Michigan Strategic Fund, Thorn Apple Valley,
Inc. Project, from the Investors Michigan Municipal
Cash Fund for $203,000 in excess of the security's
value. The fund recorded a realized loss on the sale
and a capital contribution of an equal amount from
Scudder Kemper. Scudder Kemper received no shares of
the fund or other consideration in exchange for such
contribution.
4. LINE OF CREDIT The funds and several Kemper funds (the "Participants")
share in a $750 million revolving credit facility for
temporary or emergency purposes, including the meeting
of redemption requests that otherwise might require the
untimely disposition of securities. The Participants
are charged an annual commitment fee which is allocated
pro rata among each of the participants. Interest is
calculated based on the market rates at the time of the
borrowing. The funds may borrow up to a maximum of 33
percent of their net assets under the agreement.
16
<PAGE> 17
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
SEPTEMBER 30, YEAR ENDED MARCH 31,
NEW YORK 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 .01 .02 .03 .03 .03 .02
- --------------------------------------------------------------------------------------------------------------------------
Less dividends declared .01 .02 .03 .03 .03 .02
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 1.00 1.00 1.00 1.00 1.00 1.00
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (NOT ANNUALIZED) 1.19% 2.50 2.90 3.03 3.03 2.40
- --------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS AFTER EXPENSE WAIVER
(ANNUALIZED):
- --------------------------------------------------------------------------------------------------------------------------
Expenses .80% .80 .80 .44 .80 .80
- --------------------------------------------------------------------------------------------------------------------------
Net investment income 2.35% 2.41 2.83 2.96 2.95 2.44
- --------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS BEFORE EXPENSE WAIVER
(ANNUALIZED):
- --------------------------------------------------------------------------------------------------------------------------
Expenses .94% .98 .98 .96 1.14 1.15
- --------------------------------------------------------------------------------------------------------------------------
Net investment income 2.21% 2.23 2.65 2.44 2.61 2.09
- --------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of year (in thousands) $191,115 184,497 104,198 60,575 18,527 14,090
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PENNSYLVANIA FLORIDA NEW JERSEY
------------------------------------- ------------------------------------- -------------
SIX MONTHS YEAR MAY 21, SIX MONTHS YEAR MAY 22, SIX MONTHS
ENDED ENDED 1997 TO ENDED ENDED 1997 TO ENDED
SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31, MARCH 31, SEPTEMBER 30,
1999 1999 1998 1999 1999 1998 1999
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <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 1.00
- --------------------------------------------------------------------------------------------------------------------------
Net investment income .02 .02 .02 .01 .02 .02 .01
- --------------------------------------------------------------------------------------------------------------------------
Less dividends declared .02 .02 .02 .01 .02 .02 .01
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period $ 1.00 1.00 1.00 1.00 1.00 1.00 1.00
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (NOT
ANNUALIZED) 1.20% 2.50 2.42 1.19 2.50 2.41 1.09
- --------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET
ASSETS AFTER EXPENSE WAIVER
(ANNUALIZED):
Expenses .90% .90 .90 .90 .85 .90 .90
- --------------------------------------------------------------------------------------------------------------------------
Net investment income 2.37% 2.40 2.76 2.35 2.36 2.74 2.17
- --------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET
ASSETS BEFORE EXPENSE
WAIVER (ANNUALIZED):
- --------------------------------------------------------------------------------------------------------------------------
Expenses 1.07% 1.12 1.11 1.12 1.09 .99 1.10
- --------------------------------------------------------------------------------------------------------------------------
Net investment income 2.20% 2.18 2.55 2.13 2.12 2.65 1.97
- --------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period
(in thousands) $9,404 6,003 3,195 25,204 20,454 7,611 26,643
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
NEW JERSEY MICHIGAN
--------------------- -------------------------
YEAR MAY 23, SIX MONTHS APRIL 6,
ENDED 1997 TO ENDED 1998 TO
MARCH 31, MARCH 31, SEPTEMBER 30, MARCH 31,
1999 1998 1999 1999
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
PER SHARE OPERATING
PERFORMANCE:
- ------------------------------------------------------------------------------
Net asset value, beginning
of period 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------
Net investment income .02 .02 .01 .02
- ------------------------------------------------------------------------------
Less dividends declared .02 .02 .01 .02
- ------------------------------------------------------------------------------
Net asset value, end of
period 1.00 1.00 1.00 1.00
- ------------------------------------------------------------------------------
TOTAL RETURN (NOT
ANNUALIZED) 2.26 2.22 1.29(a) 2.41
- ------------------------------------------------------------------------------
RATIOS TO AVERAGE NET
ASSETS AFTER EXPENSE WAIVER
(ANNUALIZED):
- ------------------------------------------------------------------------------
Expenses .90 .90 .75 .75
- ------------------------------------------------------------------------------
Net investment income 2.13 2.55 2.55 2.62
- ------------------------------------------------------------------------------
RATIOS TO AVERAGE NET
ASSETS BEFORE EXPENSE
WAIVER (ANNUALIZED):
- ------------------------------------------------------------------------------
Expenses 1.12 1.12 .87 .87
- ------------------------------------------------------------------------------
Net investment income 1.91 2.33 2.43 2.50
- ------------------------------------------------------------------------------
SUPPLEMENTAL DATA:
Net assets at end of period
(in thousands) 15,330 4,665 10,157 35,625
- --------------------------------------------------------------------------------
</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, 1999 is unaudited
(a) Total return for the period ended September 30, 1999 includes the effect of
the voluntary capital contribution from Scudder Kemper (see Note 3). Without
this capital contribution, the total return would have been lower.
17
<PAGE> 18
Investors
Municipal
Cash Fund
Semi-Annual
Report
September 30, 1999
- Tax-Exempt New York
Money Market Fund
- Investors Pennsylvania
Municipal Cash Fund
- Investors Florida
Municipal Cash Fund
- Investors New Jersey
Municipal Cash Fund
- Investors Michigan
Municipal Cash Fund
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 510341 11/99 (LOGO)printed on recycled paper
1097620
