ANNUAL REPORT
- --------------------------------------------------------------------------------
Investors
Municipal
Cash Fund
March 31, 2000
o Tax-Exempt New York Money Market Fund
o Investors Pennsylvania Municipal Cash Fund
o Investors Florida Municipal Cash Fund
o Investors New Jersey Municipal Cash Fund
o 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.
<PAGE>
Dear Shareholder:
We appreciate your decision to invest in the Investors Municipal Cash Fund. The
Fund series includes:
o Tax-Exempt New York Money Market Fund
o Investors Pennsylvania Municipal Cash Fund
o Investors Florida Municipal Cash Fund
o Investors New Jersey Municipal Cash Fund
o 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 annual report for the year ended March
31, 2000.
Thank you again for your investment in the Investors Municipal Cash Fund. We
look forward to serving your investment needs for years to come.
/s/Frank Rachwalski
Frank Rachwalski
Vice President and Lead Portfolio Manager
May 3, 2000
Frank Rachwalski is a Managing Director of Scudder Kemper Investments, Inc. and
is Vice President and Lead Portfolio Manager of all Scudder Kemper Money Funds.
Mr. Rachwalski holds B.B.A. and M.B.A. degrees from Loyola University.
Fund Results
For the twelve month period ended March 31, 2000
- --------------------------------------------------------------------------------
Equivalent 7-Day
Taxable Average
Net Yield Yield Yield
- --------------------------------------------------------------------------------
Tax-Exempt New York
Money Market Fund 2.58% 4.57% 2.90%
- --------------------------------------------------------------------------------
Investors Pennsylvania
Municipal Cash Fund 2.61% 4.27% 2.95%
- --------------------------------------------------------------------------------
Investors Florida
Municipal Cash Fund 2.58% 4.10% 2.91%
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Investors New Jersey
Municipal Cash Fund 2.42% 4.11% 2.73%
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Investors Michigan
Municipal Cash Fund 2.65% 4.41% 3.08%
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Notes
The Fund's net yield is the 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. The New York Fund 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 43.5%. The Pennsylvania, New Jersey, and
Michigan Funds' equivalent taxable yields are based upon the Funds' yields and a
combined Federal and State marginal income tax rate of 38.9%, 41.1%, and 39.9%
respectively. The Florida Fund equivalent taxable yield is based upon the Fund's
yield and a 37.1% Federal income tax rate. Income may be subject to local taxes
and for some investors, the alternative minimum tax.
Like all money market funds, an investment in the Fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although the Fund seeks 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.
1
<TABLE>
<CAPTION>
Portfolio of Investments at March 31, 2000
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
Tax-Exempt New York Money Market Fund
- ------------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Securities* -- 55.8%
- ------------------------------------------------------------------------------------------------------------------------
New York Obligations
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
New York Dormitory Authority,
Cornell University, 3.90% $ 8,100,000 $ 8,100,000
- ------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority,
Memorial Sloan, 3.90% 3,000,000 3,000,000
- ------------------------------------------------------------------------------------------------------------------------
New York Energy Research and Development Authority,
Long Island Corp., 3.80% 4,000,000 4,000,000
- ------------------------------------------------------------------------------------------------------------------------
New York Energy Research and Development Authority,
Niagara Mohawk Power Corp. Project, 3.90% 4,600,000 4,600,000
- ------------------------------------------------------------------------------------------------------------------------
New York Energy Research and Development Authority,
Niagara Mohawk Power Corp. Project, 4.15% 4,090,000 4,090,000
- ------------------------------------------------------------------------------------------------------------------------
New York Energy Research and Development Authority,
Orange & Rockland Project, 3.55% 3,200,000 3,200,000
- ------------------------------------------------------------------------------------------------------------------------
New York Housing Finance Agency,
Service Contract Obligation, 3.75% 7,400,000 7,400,000
- ------------------------------------------------------------------------------------------------------------------------
New York Housing Finance Agency,
East 84th Street, 3.75% 7,500,000 7,500,000
- ------------------------------------------------------------------------------------------------------------------------
New York Housing Finance Agency,
Hospital for Special Surgery, 3.60% 900,000 900,000
- ------------------------------------------------------------------------------------------------------------------------
New York Housing Finance Agency,
Normandie Court I Project, 3.70% 11,500,000 11,500,000
- ------------------------------------------------------------------------------------------------------------------------
New York Housing Finance Agency,
East 39 Street, 3.80% 10,000,000 10,000,000
- ------------------------------------------------------------------------------------------------------------------------
New York Housing Finance Agency,
Sixth Avenue, 3.80% 9,000,000 9,000,000
- ------------------------------------------------------------------------------------------------------------------------
New York Local Government Assistance Corp., 3.60% 2,200,000 2,200,000
- ------------------------------------------------------------------------------------------------------------------------
New York Medical Care Facilities Finance Agency, 3.60% 1,600,000 1,600,000
- ------------------------------------------------------------------------------------------------------------------------
Babylon
Industrial Development Agency,
J. D'Addario Realty Co. Project, 3.85% 1,900,000 1,900,000
The accompanying notes are an integral part of the finanical statements.
2
<PAGE>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------------------
Babylon
Industrial Development Agency,
OFS Equity Babylon Project, 4.00% $ 1,500,000 $ 1,500,000
- ------------------------------------------------------------------------------------------------------------------------
Babylon
Industrial Development Agency,
Ogden Martin Systems Project, 3.55% 7,000,000 7,000,000
- ------------------------------------------------------------------------------------------------------------------------
Long Island
Power Authority Electric System, 4.00% 3,210,000 3,210,000
- ------------------------------------------------------------------------------------------------------------------------
New York City
General Obligation, 3.65%-4.10% 13,005,000 13,005,000
- ------------------------------------------------------------------------------------------------------------------------
New York City
Health and Hospitals Corporation, 3.65%-3.70% 10,040,000 10,040,000
- ------------------------------------------------------------------------------------------------------------------------
New York City
Housing Development Corporation,
Columbus Gardens, 3.60% 3,800,000 3,800,000
- ------------------------------------------------------------------------------------------------------------------------
New York City
Trust for Cultural Resources
Carnegie Hall, 3.65% 1,650,000 1,650,000
- ------------------------------------------------------------------------------------------------------------------------
New York City
Water Finance Authority,
Water & Sewer System, 4.10% 6,200,000 6,200,000
- ------------------------------------------------------------------------------------------------------------------------
Niagara County
Industrial Development Agency
Solid Waste Disposable, 3.90% 9,500,000 9,500,000
- ------------------------------------------------------------------------------------------------------------------------
St. Lawrence County
Industrial Development Agency,
Reynolds Metals Company Project, 3.70% 500,000 500,000
- ------------------------------------------------------------------------------------------------------------------------
Total Variable Rate Demand Securities (Cost $135,395,000) 135,395,000
- ------------------------------------------------------------------------------------------------------------------------
Other Securities -- 44.2%
- ------------------------------------------------------------------------------------------------------------------------
New York
Dormitory Authority, Columbia University,
3.45%-3.70%, 4/7/2000-4/13/2000 9,000,000 9,000,000
- ------------------------------------------------------------------------------------------------------------------------
New York
General Obligation, 3.85%, 5/11/2000 2,500,000 2,500,000
The accompanying notes are an integral part of the finanical statements.
3
<PAGE>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------------------
New York
Metropolitan Transportation Authority,
3.55%-3.75%, 4/13/2000-5/10/2000 $ 11,000,000 $ 11,000,000
- ------------------------------------------------------------------------------------------------------------------------
New York
Power Authority, 3.75%-3.90%, 5/8/2000-5/12/2000 21,300,000 21,300,000
- ------------------------------------------------------------------------------------------------------------------------
New York
Water Finance Authority, 3.65%, 5/4/2000 3,300,000 3,300,000
- ------------------------------------------------------------------------------------------------------------------------
Buffalo
Revenue Anticipation Notes, 4.65%, 7/25/2000 2,005,229 2,005,229
- ------------------------------------------------------------------------------------------------------------------------
Long Island
Power Authority, 3.55%-4.05%, 4/10/2000-6/12/2000 24,500,000 24,500,000
- ------------------------------------------------------------------------------------------------------------------------
Nassau County
Tax Anticipation Notes, 4.75%-4.85%, 4/28/2000-8/31/2000 3,605,995 3,605,995
- ------------------------------------------------------------------------------------------------------------------------
New York City
General Obligation, 3.90%, 5/12/2000 1,000,000 1,000,000
- ------------------------------------------------------------------------------------------------------------------------
New York City
Municipal Water Finance Authority, 3.55%-3.80%,
4/11/2000-4/27/2000 29,200,000 29,200,000
- ------------------------------------------------------------------------------------------------------------------------
Total Other Securities (Cost $107,411,224) 107,411,224
- ------------------------------------------------------------------------------------------------------------------------
Total Investment Portfolio-- 100% (Cost $242,806,224) (a) $ 242,806,224
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
Interest rates represent annualized yield to date of maturity, except for
variable rate securities described below.
(a) Cost for federal income tax purposes was $242,806,224.
* Variable rate demand securities are securities whose yields vary with a
designated market index or market rate such as the coupon equivalent of the
Treasury bill rate. These securities are shown at their current rate as of
March 31, 2000 and are payable within five business days. Portfolio of
Investments at March 31, 2000
The accompanying notes are an integral part of the finanical statements.
4
<PAGE>
<TABLE>
<CAPTION>
Portfolio of Investments at March 31, 2000
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
Investors Pennsylvania Municipal Cash Fund
- ------------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Securities* -- 79.9%
- ------------------------------------------------------------------------------------------------------------------------
Pennsylvania Obligations
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Pennsylvania State Higher Education
Educational Facilities Authority Revenue, Series B, 3.90% $ 415,000 $ 415,000
- ------------------------------------------------------------------------------------------------------------------------
Pennsylvania State Higher Education
Educational Facilities Authority Revenue, Series C, 3.95% 600,000 600,000
- ------------------------------------------------------------------------------------------------------------------------
Pennsylvania State Higher Education
Educational Facilities Authority Revenue, Series D, 3.95% 1,500,000 1,500,000
- ------------------------------------------------------------------------------------------------------------------------
Pennsylvania State Higher Education Assistance Agency
Student Loan Revenue, Series B, 4.00% 100,000 100,000
- ------------------------------------------------------------------------------------------------------------------------
Pennsylvania State Higher Education Assistance Agency
Student Loan Revenue, Series A, 4.00% 500,000 500,000
- ------------------------------------------------------------------------------------------------------------------------
Allegheny County
Industrial Development Authority, 3.90% 100,000 100,000
- ------------------------------------------------------------------------------------------------------------------------
Allentown
Hospital Authority Revenue, 4.00% 100,000 100,000
- ------------------------------------------------------------------------------------------------------------------------
Bucks County
Industrial Development Authority, 3.85% 300,000 300,000
- ------------------------------------------------------------------------------------------------------------------------
Cambria County
Industrial Development Authority, 3.95% 600,000 600,000
- ------------------------------------------------------------------------------------------------------------------------
Chester County
Industrial Development Authority, 4.15% 100,000 100,000
- ------------------------------------------------------------------------------------------------------------------------
Dallastown Area School District
General Obligation, 3.94% 295,000 295,000
- ------------------------------------------------------------------------------------------------------------------------
Dauphin County
General Authority Revenue, 3.94% 700,000 700,000
- ------------------------------------------------------------------------------------------------------------------------
Delaware County
Industrial Development Authority, 4.00% 650,000 650,000
- ------------------------------------------------------------------------------------------------------------------------
Delaware Valley
Regional Financing Authority, 3.85% 700,000 700,000
- ------------------------------------------------------------------------------------------------------------------------
Emmaus
General Authority Revenue, Series B, 3.90% 200,000 200,000
- ------------------------------------------------------------------------------------------------------------------------
Emmaus
General Authority Revenue, Series A, 4.00% 700,000 700,000
The accompanying notes are an integral part of the finanical statements.
5
<PAGE>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------------------
Erie County
Hospital Authority Revenue, 4.10% $ 100,000 $ 100,000
- ------------------------------------------------------------------------------------------------------------------------
Gettysburg
Industrial Development Authority, 3.95% 100,000 100,000
- ------------------------------------------------------------------------------------------------------------------------
Gettysburg
Industrial Development Authority, 3.90% 700,000 700,000
- ------------------------------------------------------------------------------------------------------------------------
Indiana County
Industrial Development Authority, 3.95% 100,000 100,000
- ------------------------------------------------------------------------------------------------------------------------
Lancaster County
General Obligation, 3.94% 300,000 300,000
- ------------------------------------------------------------------------------------------------------------------------
Lancaster County
Hospital Authority Revenue, 3.96% 300,000 300,000
- ------------------------------------------------------------------------------------------------------------------------
Lebanon County
Health Center Revenue, 3.96% 400,000 400,000
- ------------------------------------------------------------------------------------------------------------------------
Lehigh County
General Purpose Authority Revenue, Series A, 4.00% 500,000 500,000
- ------------------------------------------------------------------------------------------------------------------------
Lehigh County
Industrial Development Authority, 4.10% 280,000 280,000
- ------------------------------------------------------------------------------------------------------------------------
Northumberland County
Industrial Development Authority, 4.00% 470,000 470,000
- ------------------------------------------------------------------------------------------------------------------------
Philadelphia
Authority for Individual Development Revenue, 3.95% 800,000 800,000
- ------------------------------------------------------------------------------------------------------------------------
Philadelphia, Hospital and Higher Education Facilities Authority
Hospital Revenue, 3.95% 300,000 300,000
- ------------------------------------------------------------------------------------------------------------------------
Quakertown
Hospital Authority Revenue, 4.00% 100,000 100,000
- ------------------------------------------------------------------------------------------------------------------------
Schuylkill County
Industrial Development Authority, 3.85% 700,000 700,000
- ------------------------------------------------------------------------------------------------------------------------
State Public School
Building Authority Revenue, Series D, 3.94% 600,000 600,000
- ------------------------------------------------------------------------------------------------------------------------
University of Pittsburgh
Higher Education Revenue, Series A, 3.60% 400,000 400,000
- ------------------------------------------------------------------------------------------------------------------------
Venango
Industrial Development Authority, 4.10% 285,000 285,000
- ------------------------------------------------------------------------------------------------------------------------
Washington County
Authority Lease Revenue, 3.95% 400,000 400,000
The accompanying notes are an integral part of the finanical statements.
6
<PAGE>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------------------
York County
Industrial Development Authority, 3.90% $ 100,000 $ 100,000
- ------------------------------------------------------------------------------------------------------------------------
Other Obligations
- ------------------------------------------------------------------------------------------------------------------------
Indiana
Jasper County
Pollution Control Revenue, 4.00% 300,000 300,000
- ------------------------------------------------------------------------------------------------------------------------
Texas
Harris County
Health Facility Development Corporation Revenue, Series B, 4.10% 1,100,000 1,100,000
- ------------------------------------------------------------------------------------------------------------------------
North Central Texas
Health Facilities Development Corporation Revenue, 4.10% 800,000 800,000
- ------------------------------------------------------------------------------------------------------------------------
Total Variable Rate Demand Securities (Cost $16,695,000) 16,695,000
- ------------------------------------------------------------------------------------------------------------------------
Other Securities -- 20.1%
- ------------------------------------------------------------------------------------------------------------------------
Pennsylvania State
General Obligation, 3.85%, 5/8/2000 800,000 800,000
- ------------------------------------------------------------------------------------------------------------------------
Beaver County Duequesne
Industrial Development Authority, 3.75%, 4/3/2000 500,000 500,000
- ------------------------------------------------------------------------------------------------------------------------
Carbon County
Industrial Development Authority, 3.80%, 4/14/2000 300,000 300,000
- ------------------------------------------------------------------------------------------------------------------------
Carbon County
Industrial Development Authority, 3.80%, 4/14/2000 500,000 500,000
- ------------------------------------------------------------------------------------------------------------------------
Delaware County
Industrial Development Authority, 3.65%, 4/11/2000 500,000 500,000
- ------------------------------------------------------------------------------------------------------------------------
Montgomery County
Industrial Development Authority, 3.65%, 5/9/2000 500,000 500,000
- ------------------------------------------------------------------------------------------------------------------------
Montgomery County
Industrial Development Authority, 4.00%, 6/9/2000 1,000,000 1,000,000
- ------------------------------------------------------------------------------------------------------------------------
Philadelphia
Tax and Revenue Anticipation Notes, Series A, 4.25%, 6/30/2000 100,000 100,179
- ------------------------------------------------------------------------------------------------------------------------
Total Other Securities (Cost $4,200,179) 4,200,179
- ------------------------------------------------------------------------------------------------------------------------
Total Investment Portfolio -- 100% (Cost $20,895,179) (a) $ 20,895,179
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
Interest rates represent annualized yield to date of maturity, except for
variable rate securities described below.
(a) Cost for federal income tax purposes was $20,895,179.
* Variable rate demand securities are securities whose yields vary with a
designated market index or market rate such as the coupon equivalent of the
Treasury bill rate. These securities are shown at their current rate as of
March 31, 2000 and are payable within five business days. Portfolio of
Investments at March 31, 2000
The accompanying notes are an integral part of the finanical statements.
7
<PAGE>
<TABLE>
<CAPTION>
Portfolio of Investments at March 31, 2000
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
Investors Florida Municipal Cash Fund
- ------------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Securities* -- 75.8%
- ------------------------------------------------------------------------------------------------------------------------
Florida Obligations
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alachua County
Health Facilities Authority, 4.10% $ 330,000 $ 330,000
- ------------------------------------------------------------------------------------------------------------------------
Alachua County
Health Facilities Authority, 3.85% 700,000 700,000
- ------------------------------------------------------------------------------------------------------------------------
Alachua County
Health Facilities Authority, 4.20% 250,000 250,000
- ------------------------------------------------------------------------------------------------------------------------
Broward County
Industrial Development Authority, 4.15% 195,000 195,000
- ------------------------------------------------------------------------------------------------------------------------
Capital Projects Financing Authority, 3.90% 1,600,000 1,600,000
- ------------------------------------------------------------------------------------------------------------------------
Citrus Park
Community Development Authority, 3.85% 900,000 900,000
- ------------------------------------------------------------------------------------------------------------------------
Collier County Clinic 99, 4.00% 1,400,000 1,400,000
- ------------------------------------------------------------------------------------------------------------------------
Dade County
Aviation Facilities Authority, 3.85% 330,000 330,000
- ------------------------------------------------------------------------------------------------------------------------
Dade County
Dolphins Stadium Project, 3.85% 1,050,000 1,050,000
- ------------------------------------------------------------------------------------------------------------------------
Dade County
Spectrum Programs, Inc. Project, 4.05% 775,000 775,000
- ------------------------------------------------------------------------------------------------------------------------
Dade County
Water and Sewer System Revenue, 3.80% 900,000 900,000
- ------------------------------------------------------------------------------------------------------------------------
Escambia County
Health Facilities Authority, 4.20% 250,000 250,000
- ------------------------------------------------------------------------------------------------------------------------
Gulf Breeze Revenue, 3.90% 1,795,000 1,795,000
- ------------------------------------------------------------------------------------------------------------------------
Hillsborough County
Industrial Development Authority, 4.10% 400,000 400,000
- ------------------------------------------------------------------------------------------------------------------------
Hillsborough County
Industrial Development Authority, 4.05% 1,500,000 1,500,000
- ------------------------------------------------------------------------------------------------------------------------
Jacksonville
Health Facilities Authority, 4.05% 500,000 500,000
- ------------------------------------------------------------------------------------------------------------------------
Jacksonville
Industrial Development Authority, 3.95% 3,000,000 3,000,000
The accompanying notes are an integral part of the finanical statements.
8
<PAGE>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------------------
Orange County
Health Facilities Authority Revenue, 3.90% $ 1,480,000 $ 1,480,000
- ------------------------------------------------------------------------------------------------------------------------
Orange County
Health Facilities Authority Revenue, 4.05% 300,000 300,000
- ------------------------------------------------------------------------------------------------------------------------
Orange County
Housing Finance Authority Revenue, 3.85% 1,250,000 1,250,000
- ------------------------------------------------------------------------------------------------------------------------
Orlando
Republic Drive Interchange Project, 3.80% 700,000 700,000
- ------------------------------------------------------------------------------------------------------------------------
Putnam County
Development Authority Pollution Control Revenue, 3.95% 825,000 825,000
- ------------------------------------------------------------------------------------------------------------------------
Putnam County
Development Authority Pollution Control Revenue, 3.95% 2,445,000 2,445,000
- ------------------------------------------------------------------------------------------------------------------------
Sunshine State Government Finance Authority, 3.90% 1,500,000 1,500,000
- ------------------------------------------------------------------------------------------------------------------------
Other Obligations
- ------------------------------------------------------------------------------------------------------------------------
Michigan
University of Michigan Hospital Revenue, 4.00% 700,000 700,000
- ------------------------------------------------------------------------------------------------------------------------
New York
New York State Energy and Development Authority, 4.15% 1,010,000 1,010,000
- ------------------------------------------------------------------------------------------------------------------------
Texas
Sabine River Authority Pollution Control Revenue, 4.15% 700,000 700,000
- ------------------------------------------------------------------------------------------------------------------------
Washington DC
General Obligation, 4.10% 1,000,000 1,000,000
- ------------------------------------------------------------------------------------------------------------------------
Washington DC
General Obligation, 4.00% 500,000 500,000
- ------------------------------------------------------------------------------------------------------------------------
Total Variable Rate Demand Securities (Cost $28,285,000) 28,285,000
- ------------------------------------------------------------------------------------------------------------------------
Other Securities -- 24.2%
- ------------------------------------------------------------------------------------------------------------------------
Dade County School District Revenue, 7.00%, 8/1/2000 1,400,000 1,414,233
- ------------------------------------------------------------------------------------------------------------------------
Florida Municipal Power Agency, 3.95%, 5/10/2000 200,000 200,000
- ------------------------------------------------------------------------------------------------------------------------
Florida Municipal Power Agency, 3.70%, 5/10/2000 1,300,000 1,300,000
- ------------------------------------------------------------------------------------------------------------------------
Jacksonville Electric Revenue, 3.45%, 4/12/2000 1,000,000 1,000,000
- ------------------------------------------------------------------------------------------------------------------------
Orange County Health Facilities Authority, 4.10%, 5/11/2000 500,000 500,000
- ------------------------------------------------------------------------------------------------------------------------
Orange County Health Facilities Authority, 4.10%, 5/15/2000 500,000 500,000
- ------------------------------------------------------------------------------------------------------------------------
Orlando Capital Improvement Revenue, 3.80%, 4/10/2000 1,500,000 1,500,000
- ------------------------------------------------------------------------------------------------------------------------
Orlando Capital Improvement Revenue, 3.85%, 4/12/2000 400,000 400,000
The accompanying notes are an integral part of the finanical statements.
9
<PAGE>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------------------
Orlando Capital Improvement Revenue, 3.90%, 4/12/2000 $ 1,000,000 $ 1,000,000
- ------------------------------------------------------------------------------------------------------------------------
Pinellas County Education Facilities Authority, 4.10%, 5/9/2000 1,000,000 1,000,000
- ------------------------------------------------------------------------------------------------------------------------
Sarasota County Hospital Revenue, 3.80%, 5/11/2000 200,000 200,000
- ------------------------------------------------------------------------------------------------------------------------
Total Other Securities (Cost $9,014,233) 9,014,233
- ------------------------------------------------------------------------------------------------------------------------
Total Investments -- 100% (Cost: $37,299,233) (a) $ 37,299,233
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
Interest rates represent annualized yield to date of maturity, except for
variable rate securities described below.
(a) Cost for federal income tax purposes was $37,299,233.
* Variable rate demand securities are securities whose yields vary with a
designated market index or market rate such as the coupon equivalent of the
Treasury bill rate. These securities are shown at their current rate as of
March 31, 2000, and are payable within five business days. Portfolio of
Investments at March 31, 2000
The accompanying notes are an integral part of the finanical statements.
10
<PAGE>
<TABLE>
<CAPTION>
Portfolio of Investments at March 31, 2000
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
Investors New Jersey Municipal Cash Fund
- ------------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Securities* -- 74.9%
- ------------------------------------------------------------------------------------------------------------------------
New Jersey Obligations
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
New Jersey Economic Development Authority,
AIRIS Newark Project, 3.90% $ 2,200,000 $ 2,200,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
Blair Academy, School Revenue, 3.75% 1,000,000 1,000,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
Dow Chemical Company, El Dorado Terminals Revenue, 3.95% 1,500,000 1,500,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
Foreign Trade Zone Project, 3.90% 2,000,000 2,000,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
400 International Drive Partners, 3.10% 1,500,000 1,500,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
General Motors Project, 3.45% 1,105,000 1,105,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
National Utility Investors Corp. Project, 3.85% 1,200,000 1,200,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
Natural Gas Co. Project, 3.60% 200,000 200,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
Public Service Electric and Gas Co., 3.30% 1,800,000 1,800,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
Stolthaven Project, 3.95% 1,500,000 1,500,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
Thermal Energy Facilities Revenue, 3.60% 2,100,000 2,100,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
Water Facilities Authority Revenue, 4.10% 700,000 700,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey Healthcare Facilities Financing Authority,
Hospital Capital Asset Financing, 3.70% 600,000 600,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey Healthcare Facilities Financing Authority,
Pascack Community Services, 3.70% 300,000 300,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey Sports and Exposition Authority, 3.80% 2,145,000 2,145,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey Turnpike Authority, 3.40% 2,100,000 2,100,000
The accompanying notes are an integral part of the finanical statements.
11
<PAGE>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------------------
Essex County
Improvement Authority Revenue, 3.45% $ 1,500,000 $ 1,500,000
- ------------------------------------------------------------------------------------------------------------------------
Somerset County
Pollution Control Revenue, 3.65% 1,200,000 1,200,000
- ------------------------------------------------------------------------------------------------------------------------
Union County
Pollution Control Revenue, 3.00%-3.40% 1,800,000 1,800,000
- ------------------------------------------------------------------------------------------------------------------------
Other Obligations
- ------------------------------------------------------------------------------------------------------------------------
Alabama
Phoenix, Industrial Development Board,
Environmental Improvement Revenue, 4.10% 3,000,000 3,000,000
- ------------------------------------------------------------------------------------------------------------------------
Indiana
Jasper County, Northern Indiana Public Service,
Industrial Pollution Control Revenue, 4.00% 2,000,000 2,000,000
- ------------------------------------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey,
Versatile Structure Special Obligation Revenue, 3.85% 1,400,000 1,400,000
- ------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth
Government Development Bank, 3.15% 300,000 300,000
- ------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth
Highway and Transportation Authority, 3.25% 1,000,000 1,000,000
- ------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth
Industrial, Tourist, Educational, Medical and Environmental Control Facilities 300,000 300,000
Financing Authority, 3.45%
- ------------------------------------------------------------------------------------------------------------------------
Texas
Sabine River Authority, Utilities Electric Co.,
Pollution Control Revenue, 4.15% 700,000 700,000
- ------------------------------------------------------------------------------------------------------------------------
Total Variable Rate Demand Securities (Cost $35,150,000) 35,150,000
- ------------------------------------------------------------------------------------------------------------------------
Other Securities -- 25.1%
- ------------------------------------------------------------------------------------------------------------------------
New Jersey
Economic Development Authority, 3.50%, 4/10/2000 900,000 900,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey
Educational Facilities, Princeton, 3.55%, 5/10/2000-5/12/2000 2,000,000 2,000,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey
Port Authority, 3.55%-3.95%, 4/10/2000-6/12/2000 2,600,000 2,600,000
- ------------------------------------------------------------------------------------------------------------------------
New Jersey
Transportation 2000A, 3.65%-3.80%, 4/11/2000-4/13/2000 2,500,000 2,500,000
The accompanying notes are an integral part of the finanical statements.
12
<PAGE>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth
Government Development Bank, 3.65%, 4/10/2000 $ 800,000 $ 800,000
- ------------------------------------------------------------------------------------------------------------------------
Salem County
Pollution Control Revenue, 3.40%, 4/11/2000 2,000,000 2,000,000
- ------------------------------------------------------------------------------------------------------------------------
Union County
Import Authority Correctional Facility, 5.40%, 6/15/2000 1,000,000 1,003,595
- ------------------------------------------------------------------------------------------------------------------------
Total Other Securities (Cost $11,803,595) 11,803,595
- ------------------------------------------------------------------------------------------------------------------------
Total Investment Portfolio -- 100% (Cost $46,953,595) (a) $ 46,953,595
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
Interest rates represent yield to date of maturity, except for variable
rate securities described below.
(a) Cost for federal income tax purposes was $46,953,595.
* Variable rate demand securities are securities whose yield vary with a
designated market index or market rate such as the coupon equivalent of the
Treasury bill rate. These securities are shown at their current rate as of
March 31, 2000, and are payable within five business days. Portfolio of
Investments at March 31, 2000
The accompanying notes are an integral part of the finanical statements.
13
<PAGE>
<TABLE>
<CAPTION>
Portfolio of Investments at March 31, 2000
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
Investors Michigan Municipal Cash Fund
- ------------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Securities* -- 78.4%
- ------------------------------------------------------------------------------------------------------------------------
Michigan Obligations
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Michigan State University,
Higher Education Authority, 3.85% $ 500,000 $ 500,000
- ------------------------------------------------------------------------------------------------------------------------
Michigan Higher Education Authority,
Student Loan, 3.90% 800,000 800,000
- ------------------------------------------------------------------------------------------------------------------------
Michigan Hospital Financing Authority,
Covenant Retirement, 3.95% 430,000 430,000
- ------------------------------------------------------------------------------------------------------------------------
Michigan Hospital Financing Authority,
Hospital Equipment, 3.85% 400,000 400,000
- ------------------------------------------------------------------------------------------------------------------------
Michigan Hospital Financing Authority,
Hospital Equipment, 3.85% 400,000 400,000
- ------------------------------------------------------------------------------------------------------------------------
Michigan Hospital Financing Authority,
Mt Clemens General Hospital, 3.90% 800,000 800,000
- ------------------------------------------------------------------------------------------------------------------------
Michigan Housing Development Authority, 3.90% 800,000 800,000
- ------------------------------------------------------------------------------------------------------------------------
Michigan Job Development Authority,
Gordon Food Service, Inc. Project, 3.90% 800,000 800,000
- ------------------------------------------------------------------------------------------------------------------------
Michigan Job Development Authority,
Kenwood Residence, 3.65% 1,000,000 1,000,000
- ------------------------------------------------------------------------------------------------------------------------
Michigan Strategic Fund,
Continental Aluminum Project, 4.05% 400,000 400,000
- ------------------------------------------------------------------------------------------------------------------------
Michigan Strategic Fund,
Creative Foam Corp. Project, 4.10% 400,000 400,000
- ------------------------------------------------------------------------------------------------------------------------
Michigan Strategic Fund,
General Motors Corp. Project, 4.00% 900,000 900,000
- ------------------------------------------------------------------------------------------------------------------------
Michigan Strategic Fund,
Hope Network, Inc. Project, 4.00% 400,000 400,000
- ------------------------------------------------------------------------------------------------------------------------
Michigan Strategic Fund,
Obligation Revenue, 4.05% 900,000 900,000
- ------------------------------------------------------------------------------------------------------------------------
University of Michigan Hospitals, 4.00% 1,000,000 1,000,000
- ------------------------------------------------------------------------------------------------------------------------
Bruce Township
Hospital Financing Authority, 3.90% 500,000 500,000
The accompanying notes are an integral part of the finanical statements.
14
<PAGE>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------------------
Cornell Township
Economic Development Corp., 3.95% $ 800,000 $ 800,000
- ------------------------------------------------------------------------------------------------------------------------
Delta County
Economic Development Corp., 3.95% 100,000 100,000
- ------------------------------------------------------------------------------------------------------------------------
Delta County
Economic Development Corp., 4.00% 1,100,000 1,100,000
- ------------------------------------------------------------------------------------------------------------------------
Detroit
Sewage Revenue, 3.90% 800,000 800,000
- ------------------------------------------------------------------------------------------------------------------------
Farmington Hills
Economic Development Authority, 4.25% 365,000 365,000
- ------------------------------------------------------------------------------------------------------------------------
Genesee County
Economic Development Authority, 4.10% 400,000 400,000
- ------------------------------------------------------------------------------------------------------------------------
Grand Rapids
Water Supply Revenue, 3.85% 800,000 800,000
- ------------------------------------------------------------------------------------------------------------------------
Oakland County
Economic Development Corp., 4.05% 200,000 200,000
- ------------------------------------------------------------------------------------------------------------------------
Sterling Heights
Economic Development Corp., 4.10% 700,000 700,000
- ------------------------------------------------------------------------------------------------------------------------
Wayne County
Airport Revenue, 3.90% 1,100,000 1,100,000
- ------------------------------------------------------------------------------------------------------------------------
Other Obligations
- ------------------------------------------------------------------------------------------------------------------------
Louisiana
Offshore Terminal Authority,
Deepwater Revenue, 4.00% 400,000 400,000
- ------------------------------------------------------------------------------------------------------------------------
Texas
Brazos River Authority,
Pollution Control Project, 4.15% 1,000,000 1,000,000
- ------------------------------------------------------------------------------------------------------------------------
Total Variable Rate Demand Securities (Cost $18,195,000) 18,195,000
- ------------------------------------------------------------------------------------------------------------------------
Other Securities -- 21.6%
- ------------------------------------------------------------------------------------------------------------------------
Michigan
Municipal Bond Authority, 4.25%, 8/25/2000 500,000 500,436
- ------------------------------------------------------------------------------------------------------------------------
Michigan
Strategic Fund
3.65%-3.95%, 4/10/2000-5/11/2000 2,000,000 2,000,000
The accompanying notes are an integral part of the finanical statements.
15
<PAGE>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------------------
University of Michigan Regents,
3.70%-3.75%, 4/10/2000-4/11/2000 $ 2,100,000 $ 2,100,000
- ------------------------------------------------------------------------------------------------------------------------
Cornell Township
Economic Development Corp., 3.45%, 4/5/2000 400,000 400,000
- ------------------------------------------------------------------------------------------------------------------------
Total Other Securities (Cost $5,000,436) 5,000,436
- ------------------------------------------------------------------------------------------------------------------------
Total Investment Portfolio -- 100.0% (Cost $23,195,436) (a) $ 23,195,436
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
Interest rates represent annualized yield to date of maturity, except for
variable rate securities described below.
(a) Cost for federal income tax purposes was $23,195,436.
* Variable rate demand securities are securities whose yields vary with a
designated market index or market rate such as the coupon equivalent of the
Treasury bill rate. These securities are shown at their current rate as of
March 31, 2000 and are payable within five business days. Financial
Statements
The accompanying notes are an integral part of the finanical statements.
16
<PAGE>
Financial Statements
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Statement of Assets and Liabilities
- ---------------------------------------------------------------------------------------------------------------------
as of March 31, 2000 New York Pennsylvania Florida New Jersey Michigan
- ---------------------------------------------------------------------------------------------------------------------
Assets
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investments in securities, at amortized
cost $ 242,806,224 20,895,179 37,299,233 46,953,595 23,195,436
- ---------------------------------------------------------------------------------------------------------------------
Cash 3,433,695 370,925 519,661 -- 441,687
- ---------------------------------------------------------------------------------------------------------------------
Receivable for investments sold 200,000 -- 25,000 -- --
- ---------------------------------------------------------------------------------------------------------------------
Interest receivable 907,255 67,738 159,226 181,007 111,397
- ---------------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 3,742,679 759,941 1,375,019 1,718,652 280,102
- ---------------------------------------------------------------------------------------------------------------------
Other assets 530,269 44,630 -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Total assets 251,620,122 22,138,413 39,378,139 48,853,254 24,028,622
- ---------------------------------------------------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------------------------------------------------
Due to custodian bank -- -- -- 61,270 --
- ---------------------------------------------------------------------------------------------------------------------
Payable for investments purchased -- -- 602,073 -- --
- ---------------------------------------------------------------------------------------------------------------------
Dividends payable 19,465 1,683 3,080 3,655 2,017
- ---------------------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed 9,071,756 985,052 1,277,056 1,556,785 811,459
- ---------------------------------------------------------------------------------------------------------------------
Accrued management fee 50,717 -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Other accrued expenses and payables 122,468 38,049 52,074 57,410 1,820
- ---------------------------------------------------------------------------------------------------------------------
Total liabilities 9,264,406 1,024,784 1,934,283 1,679,120 815,296
- ---------------------------------------------------------------------------------------------------------------------
Net assets, at value $ 242,355,716 21,113,629 37,443,856 47,174,134 23,213,326
- ---------------------------------------------------------------------------------------------------------------------
Net Asset Value
- ---------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption
price per share $ 1.00 1.00 1.00 1.00 1.00
----------------------------------------------------------------------------
(outstanding shares of beneficial
interest, $.01 par value, unlimited
number of shares authorized) 242,355,716 21,113,629 37,443,856 47,174,134 23,213,326
- ---------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the finanical statements.
17
<PAGE>
- ---------------------------------------------------------------------------------------------------------------------
Statement of Operations
- ---------------------------------------------------------------------------------------------------------------------
Year ended March 31, 2000 New York Pennsylvania Florida New Jersey Michigan
- ---------------------------------------------------------------------------------------------------------------------
Investment Income
- ---------------------------------------------------------------------------------------------------------------------
Interest $ 6,877,410 407,310 966,193 934,122 915,870
- ---------------------------------------------------------------------------------------------------------------------
Expenses:
- ---------------------------------------------------------------------------------------------------------------------
Management fee 447,684 25,492 60,942 61,901 59,306
- ---------------------------------------------------------------------------------------------------------------------
Services to shareholders 314,958 47,280 68,394 65,778 57,082
- ---------------------------------------------------------------------------------------------------------------------
Custodian fees 17,935 2,833 2,232 4,002 2,003
- ---------------------------------------------------------------------------------------------------------------------
Distribution services fees 1,017,463 57,937 138,504 139,685 94,179
- ---------------------------------------------------------------------------------------------------------------------
Auditing 45,417 3,206 6,400 6,476 6,200
- ---------------------------------------------------------------------------------------------------------------------
Legal 17,025 2,586 6,405 7,344 6,000
- ---------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 11,441 2,509 4,672 4,300 3,500
- ---------------------------------------------------------------------------------------------------------------------
Reports to shareholders 17,769 2,000 4,700 4,800 4,563
- ---------------------------------------------------------------------------------------------------------------------
Registration fees 27,594 14,031 18,203 20,000 10,000
- ---------------------------------------------------------------------------------------------------------------------
Other 50,741 2,927 2,173 2,985 3,292
- ---------------------------------------------------------------------------------------------------------------------
Total expenses, before expense reductions 1,968,027 160,801 312,625 317,271 246,125
- ---------------------------------------------------------------------------------------------------------------------
Expense reductions (339,484) (56,015) (62,174) (63,605) (43,907)
- ---------------------------------------------------------------------------------------------------------------------
Total expenses, after expense reductions 1,628,543 104,786 250,451 253,666 202,218
- ---------------------------------------------------------------------------------------------------------------------
Net investment income 5,248,867 302,524 715,742 680,456 713,652
- ---------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investment transactions
- ---------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from investments -- -- -- -- (203,000)
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $ 5,248,867 302,524 715,742 680,456 510,652
- ---------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the finanical statements.
18
<PAGE>
Statements of Changes in Net Assets
New York Pennsylvania Florida
----------------------------------------------------------------------------------------------
Year Ended March 31, Year Ended March 31, Year Ended March 31,
2000 1999 2000 1999 2000 1999
- ---------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
- ---------------------------------------------------------------------------------------------------------------------
Operations:
- ---------------------------------------------------------------------------------------------------------------------
Net investment income $ 5,248,867 3,253,164 302,524 97,444 715,742 215,000
- ---------------------------------------------------------------------------------------------------------------------
Net realized gain (loss)
from investments -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations 5,248,867 3,253,164 302,524 97,444 715,742 215,000
- ---------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders from net
investment income (5,248,867) (3,253,164) (302,524) (97,444) (715,742) (215,000)
- ---------------------------------------------------------------------------------------------------------------------
Fund share transactions
at net asset value of
$1.00 per share:
- ---------------------------------------------------------------------------------------------------------------------
Proceeds from shares
sold 1,282,361,905 822,159,295 133,031,398 33,396,661 271,865,669 83,792,024
- ---------------------------------------------------------------------------------------------------------------------
Reinvestment of
distributions 5,200,565 3,177,027 297,118 89,874 696,446 197,011
- ---------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed (1,229,703,912) (745,036,837) (118,217,571) (30,678,600) (255,572,142) (71,146,396)
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets from Fund
share transactions 57,858,558 80,299,485 15,110,945 2,807,935 16,989,973 12,842,639
- ---------------------------------------------------------------------------------------------------------------------
Capital contribution
from Scudder Kemper (see
Note 5) -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in
net assets 57,858,558 80,299,485 15,110,945 2,807,935 16,989,973 12,842,639
- ---------------------------------------------------------------------------------------------------------------------
Net assets at beginning
of period 184,497,158 104,197,673 6,002,684 3,194,749 20,453,883 7,611,244
- ---------------------------------------------------------------------------------------------------------------------
Net assets at end of
period $ 242,355,716 184,497,158 21,113,629 6,002,684 37,443,856 20,453,883
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the finanical statements.
19
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets
- ---------------------------------------------------------------------------------------------------------------------
New Jersey Michigan
-------------------------------------------------------------
April 6, 1998
(commencement
of operations)
Year Ended March 31, Year Ended to March 31,
2000 1999 March 31, 2000 1999
- ---------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
- ---------------------------------------------------------------------------------------------------------------------
Operations:
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income $ 680,456 $ 187,879 $ 713,652 $ 853,767
- ---------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from investments -- -- (203,000) --
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from 680,456 187,879 510,652 853,767
operations
- ---------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income (680,456) (187,879) (713,652) (853,767)
- ---------------------------------------------------------------------------------------------------------------------
Fund share transactions at net asset value of $1.00 per share:
- ---------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold 287,875,213 71,536,512 128,656,343 83,344,755
- ---------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 643,104 168,276 655,873 849,976
- ---------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed (256,673,986) (61,040,224) (141,723,917) (48,669,705)
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share 31,844,331 10,664,564 (12,411,701) 35,525,026
transactions
- ---------------------------------------------------------------------------------------------------------------------
Capital contribution from Scudder Kemper (see Note 5) -- -- 203,000 --
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 31,844,331 10,664,564 (12,411,701) 35,525,026
- ---------------------------------------------------------------------------------------------------------------------
Net assets at beginning of period 15,329,803 4,665,239 35,625,027 100,000
- ---------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 47,174,134 $ 15,329,803 $ 23,213,326 $ 35,625,026
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the finanical statements.
20
<PAGE>
Financial Highlights
The following tables include selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements and market price data.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Tax-Exempt New York Money Market Fund
- ---------------------------------------------------------------------------------------------------------------------
Year ended March 31, 2000 1999 1998 1997 1996
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 1.00 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Net investment income .03 .02 .03 .03 .03
- ---------------------------------------------------------------------------------------------------------------------
Less distributions from net investment (.03) (.02) (.03) (.03) (.03)
income
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) (b) 2.59 2.50 2.90 3.03 3.03
- ---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 242,356 184,497 104,198 60,575 18,527
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) .97 .98 .98 .96 1.14
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) .80 .80 .80 .44 .80
- ---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (%) 2.58 2.41 2.83 2.96 2.95
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Investors Pennsylvania Municipal Cash Fund
Year ended March 31, 2000 1999 1998(a)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Net investment income .03 .02 .02
- ---------------------------------------------------------------------------------------------------------------------
Less distributions from net investment income (.03) (.02) (.02)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) (b) 2.58 2.50 2.42**
- ---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 21,114 6,003 3,195
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) 1.39 1.12 1.11*
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) .90 .90 .90*
- ---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (%) 2.61 2.40 2.76*
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period May 21, 1997 (commencement of operations) to March 31, 1998.
(b) Total returns would have been lower had certain expenses not been reduced.
* Annualized
** Not annualized
21
<PAGE>
The following tables include selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements and market price data.
<TABLE>
<CAPTION>
Investors Florida Municipal Cash Fund
Year ended March 31, 2000 1999 1998(a)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Net investment income .02 .02 .02
- ---------------------------------------------------------------------------------------------------------------------
Less distributions from net investment income (.02) (.02) (.02)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) (c) 2.57 2.50 2.41**
- ---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 37,444 20,454 7,611
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) 1.13 1.09 .99*
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) .90 .85 .90*
- ---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (%) 2.58 2.36 2.74*
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Investors New Jersey Municipal Cash Fund
Year ended March 31, 2000 1999 1998(b)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Net investment income .02 .02 .02
- ---------------------------------------------------------------------------------------------------------------------
Less distributions from net investment income (.02) (.02) (.02)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) (c) 2.38 2.26 2.22**
- ---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 47,174 15,330 4,665
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) 1.13 1.12 1.12*
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) .90 .90 .90*
- ---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (%) 2.42 2.13 2.55*
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period May 22, 1997 (commencement of operations) to March 31, 1998.
(b) For the period May 23, 1997 (commencement of operations) to March 31, 1998.
(c) Total returns would have been lower had certain expenses not been reduced.
* Annualized
** Not annualized
22
<PAGE>
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements and market price data.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Investors Michigan Municipal Cash Fund
- ---------------------------------------------------------------------------------------------------------------------
Year ended March 31, 2000 1999(a)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Net investment income .03 .02
- ---------------------------------------------------------------------------------------------------------------------
Less distributions from net investment income (.03) (.02)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) (b) 2.77(c) 2.41**
- ---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 23,213 35,625
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) .91 .87*
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) .75 .75*
- ---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (%) 2.65 2.62*
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period April 6, 1998 (commencement of operations) to March 31,
1999.
(b) Total returns would have been lower had certain expenses not been reduced.
(c) Total return for the year ended March 31, 2000 includes the effect of a
voluntary capital contribution from Scudder Kemper (See note 5). Without
this capital contribution, total return would have been lower.
* Annualized
** Not annualized
23
<PAGE>
Notes to Financial Statements
1. Significant Accounting Policies
Investors Municipal Cash Fund (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end, diversified
management investment company organized as a Massachusetts business trust. The
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").
The Funds' 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.
Security Valuation. The Funds value all portfolio securities utilizing the
amortized 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 Funds 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 discounts and premiums are accreted/amortized for
both tax and financial reporting purposes.
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.
2. Transactions with Affiliates
Management Agreement. Each Fund has a management agreement with Scudder Kemper
Investments, Inc. ("Scudder Kemper") and pays a monthly investment management
fee of 1/12 of the annual rate of .22% of the first $500 million of average
daily net assets declining to .15% of average
24
<PAGE>
daily net assets in excess of $3 billion. For the year ended March 31, 2000, the
Funds incurred the following management fees:
Fund Management
Management fee waived
fee by Scudder Effective
imposed ($) Kemper ($) rate (%)
- ------------------------------------------------------------------------------
Tax-Exempt New York
Money Market
Fund 110,734 336,950 .05
- ------------------------------------------------------------------------------
Investors
Pennsylvania
Municipal Cash Fund -- 25,492 --
- ------------------------------------------------------------------------------
Investors Florida
Municipal Cash Fund -- 60,942 --
- ------------------------------------------------------------------------------
Investors New Jersey
Municipal Cash Fund -- 61,901 --
- ------------------------------------------------------------------------------
Investors Michigan
Municipal Cash Fund 15,450 43,856 .06
- ------------------------------------------------------------------------------
Distribution Services Agreement. Each Fund has an administration, shareholder
services and distribution agreement with Kemper Distributors, Inc. ("KDI"). For
its services as primary distributor, each Fund pays KDI an annual fee of .50% of
average daily net assets, except for the Investors Michigan Municipal Cash Fund,
which pays an annual fee of .35% of average daily net assets. For the year ended
March 31, 2000, the Funds incurred fees as follows:
Fund Distribution Distribution Unpaid at
fee imposed fee waived March 31,
($) by KDI ($) 2000 ($)
- -------------------------------------------------------------------------------
Tax-Exempt New York
Money Market Fund 1,017,463 -- 112,319
- -------------------------------------------------------------------------------
Investors Pennsylvania
Municipal Cash Fund 28,307 29,630 12,135
- -------------------------------------------------------------------------------
Investors Florida
Municipal Cash Fund 137,902 602 25,979
- -------------------------------------------------------------------------------
Investors New Jersey
Municipal Cash Fund 139,685 -- 46,032
- -------------------------------------------------------------------------------
Investors Michigan
Municipal Cash Fund 94,179 -- --
- -------------------------------------------------------------------------------
KDI has related service agreements with various firms to provide cash management
and other services for Fund shareholders. KDI pays these 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 the Investors Michigan Municipal Cash
Fund, for which it pays firms at an annual rate of .35%.
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. For the year
25
<PAGE>
ended March 31, 2000, KSvC received shareholder services fees as follows:
Fund Unpaid at
Fee March 31,
imposed ($) 2000 ($)
- --------------------------------------------------------------------------------
Tax-Exempt New York
Money Market Fund 289,681 --
- --------------------------------------------------------------------------------
Investors Pennsylvania
Municipal Cash Fund 31,790 3,960
- --------------------------------------------------------------------------------
Investors Florida
Municipal Cash Fund 55,637 2,500
- --------------------------------------------------------------------------------
Investors New Jersey
Municipal Cash Fund 53,501 10,000
- --------------------------------------------------------------------------------
Investors Michigan
Municipal Cash Fund 47,344 --
- --------------------------------------------------------------------------------
Officers and Trustees. Certain officers or trustees of the Trust are also
officers or directors of Scudder Kemper. For the year ended March 31, 2000, the
Trust made no payments to its officers and incurred trustees' fees of $26,422 to
independent trustees.
3. Expense Off-Set Arrangements
Each Fund has entered into an arrangement with its custodian and transfer agent
whereby credits realized as a result of uninvested cash balances were used to
reduce a portion of each Fund's expenses. For the year ended March 31, 2000,
each Fund's custodian and transfer agent fees were reduced as follows:
Fund Custodian Transfer
fee agent fee
reduction ($) reduction ($)
- -------------------------------------------------------------------------------
Tax-Exempt New York
Money Market Fund 1,904 630
- -------------------------------------------------------------------------------
Investors Pennsylvania
Municipal Cash Fund 848 45
- -------------------------------------------------------------------------------
Investors Florida
Municipal Cash Fund 524 106
- -------------------------------------------------------------------------------
Investors New Jersey
Municipal Cash Fund 1,602 102
- -------------------------------------------------------------------------------
Investors Michigan
Municipal Cash Fund 3 48
- -------------------------------------------------------------------------------
4. Line of Credit
Each Fund 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
dispositions 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.
26
<PAGE>
Each Fund may borrow up to a maximum of 33 percent of its net assets under the
agreement.
5. 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.
27
<PAGE>
Report of Independent Auditors
The Board of Trustees and Shareholders
Investors Municipal Cash Fund
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of 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 comprising Investors Municipal Cash Fund, as of March 31, 2000, the
related statements of operations and changes in net assets and the financial
highlights for each of the fiscal periods indicated therein. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of March 31, 2000, by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the portfolios comprising Investors Municipal Cash Fund at March 31, 2000,
the results of their operations, the changes in their net assets and the
financial highlights for each of the fiscal periods indicated therein in
conformity with accounting principles generally accepted in the United States.
Chicago, Illinois /s/Ernst & Young LLP
May 12, 2000
28
<PAGE>
Tax Information
Of the dividends paid by each Fund for the taxable year ended March 31, 2000,
100% are designated as exempt interest dividends for federal income tax
purposes.
Please consult a tax adviser if you have questions about federal or state income
tax laws, or on how to prepare your tax returns. If you specific questions about
your account, please call 1-800-621-1048.
29
<PAGE>
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<PAGE>
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