SEMIANNUAL REPORT
--------------------------------------------------------------------------------
Investors
Municipal
Cash Fund
September 30, 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 New Jersey Municipal Cash Fund
o Investors Michigan Municipal Cash Fund
o Investors Florida Municipal Cash Fund
To provide you with an update of holdings and financial highlights, on the
following pages you'll find the Fund's semiannual report for the six-months
ended September 30, 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
October 1, 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
As of September 30, 2000
---------------------------------------------------------------------------
7-Day Equivalent
Current Taxable
Yield Yield
---------------------------------------------------------------------------
Tax-Exempt New York Money Market Fund 3.71% 6.57%
---------------------------------------------------------------------------
Investors Pennsylvania Municipal Cash Fund 3.85% 6.30%
---------------------------------------------------------------------------
Investors New Jersey Municipal Cash Fund 3.88% 6.59%
---------------------------------------------------------------------------
Investors Michigan Municipal Cash Fund 4.15% 6.91%
---------------------------------------------------------------------------
Investors Florida Municipal Cash Fund 3.99% 6.34%
---------------------------------------------------------------------------
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 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 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 Funds 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
<PAGE>
Portfolio of Investments at September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Tax-Exempt New York Money Market Fund
---------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Securities* -- 59.4%
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
New York Dormitory Authority,
Cornell University, 5.25-5.50% $ 8,600,000 $ 8,600,000
---------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority,
Glen Eddy, Inc., 5.25% 7,500,000 7,500,000
---------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority,
Memorial Sloan, 5.50% 1,000,000 1,000,000
---------------------------------------------------------------------------------------------------------------------
New York Energy Research and Development Authority,
Electric & Gas, 5.40% 3,740,000 3,740,000
---------------------------------------------------------------------------------------------------------------------
New York Housing Finance Agency,
Contract Obligation, 5.45% 7,700,000 7,700,000
---------------------------------------------------------------------------------------------------------------------
New York Housing Finance Agency,
East 84th Street, 5.30% 5,000,000 5,000,000
---------------------------------------------------------------------------------------------------------------------
New York Housing Finance Agency,
Hospital for Special Surgery, 4.45% 2,785,000 2,785,000
---------------------------------------------------------------------------------------------------------------------
New York Housing Finance Agency,
Normandie Court I Project, 5.45% 3,500,000 3,500,000
---------------------------------------------------------------------------------------------------------------------
New York Housing Finance Agency,
Related East 39 Street, 5.55% 7,000,000 7,000,000
---------------------------------------------------------------------------------------------------------------------
New York Housing Finance Agency,
6th Avenue, 5.55% 5,000,000 5,000,000
---------------------------------------------------------------------------------------------------------------------
New York Job Development Authority, 5.55% 1,000,000 1,000,000
---------------------------------------------------------------------------------------------------------------------
New York Medical Care Facilities Finance Agency, 5.20% 1,300,000 1,300,000
---------------------------------------------------------------------------------------------------------------------
Albany
Industrial Development Agency,
Davies Office Refurbishing, 5.55% 1,650,000 1,650,000
---------------------------------------------------------------------------------------------------------------------
Babylon
Industrial Development Agency,
J. D'Addario Realty Co. Project, 5.50% 1,700,000 1,700,000
---------------------------------------------------------------------------------------------------------------------
Babylon
Industrial Development Agency,
OFS Equity Babylon Project, 5.50% 2,000,000 2,000,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Hempstead
Industrial Development Agency,
Nassau Energy, 5.55% $ 1,000,000 $ 1,000,000
---------------------------------------------------------------------------------------------------------------------
Monroe
Industrial Development Agency,
Office Building, 5.45% 1,674,000 1,674,000
---------------------------------------------------------------------------------------------------------------------
New York City
General Obligation, 5.55%-5.60% 16,200,000 16,200,000
---------------------------------------------------------------------------------------------------------------------
New York City
Health and Hospitals Corporation, 5.20%-5.25% 10,040,000 10,040,000
---------------------------------------------------------------------------------------------------------------------
New York City
Trust for Cultural Resources,
American Museum of National History, 5.25% 1,000,000 1,000,000
---------------------------------------------------------------------------------------------------------------------
New York City
Trust for Cultural Resources,
Asia Society, 5.30% 3,500,000 3,500,000
---------------------------------------------------------------------------------------------------------------------
New York City
Trust for Cultural Resources,
Carnegie Hall, 4.30% 2,850,000 2,850,000
---------------------------------------------------------------------------------------------------------------------
New York City
Water Finance Authority,
Water & Sewer System, 5.50% 5,000,000 5,000,000
---------------------------------------------------------------------------------------------------------------------
Niagara County
Industrial Development Agency,
Solid Waste Disposal, 5.50% 8,000,000 8,000,000
---------------------------------------------------------------------------------------------------------------------
Onondaga
Industrial Development Agency,
Southern Container Corp., 5.55% 1,200,000 1,200,000
---------------------------------------------------------------------------------------------------------------------
Schenectady
Industrial Development Agency,
Scotia Industrial Park Project, 5.35% 1,570,000 1,570,000
---------------------------------------------------------------------------------------------------------------------
St. Lawrence County
Industrial Development Agency,
Reynolds Metals Company Project, 5.30% 500,000 500,000
---------------------------------------------------------------------------------------------------------------------
Total Variable Rate Demand Securities (Cost $112,009,000) 112,009,000
---------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
Other Securities -- 40.6%
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Long Island
Power Authority, 4.10%-4.25%, 10/11/2000-11/10/2000 $ 26,700,000 $ 26,700,000
---------------------------------------------------------------------------------------------------------------------
New York
Dormitory Authority, Columbia University,
4.10%, 10/6/2000-10/13/2000 8,000,000 8,000,000
---------------------------------------------------------------------------------------------------------------------
New York
General Obligation, 4.15%-4.25%, 10/10/2000-11/10/2000 5,000,000 5,000,000
---------------------------------------------------------------------------------------------------------------------
New York
Metropolitan Transportation Authority,
4.15%, 10/12/2000 5,000,000 5,000,000
---------------------------------------------------------------------------------------------------------------------
New York
Power Authority, 4.15%-4.25%, 10/11/2000-11/13/2000 18,000,000 18,000,000
---------------------------------------------------------------------------------------------------------------------
New York City
General Obligation, 4.25%-4.30%, 11/8/2000-11/15/2000 8,900,000 8,900,000
---------------------------------------------------------------------------------------------------------------------
New York City
Municipal Water Finance Authority, 4.10%, 11/9/2000 5,000,000 5,000,000
---------------------------------------------------------------------------------------------------------------------
Total Other Securities (Cost $76,600,000) 76,600,000
---------------------------------------------------------------------------------------------------------------------
Total Investment Portfolio -- 100% (Cost $188,609,000) (a) $ 188,609,000
---------------------------------------------------------------------------------------------------------------------
</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 $188,609,000.
* 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 September 30, 2000 and are payable within five business
days.
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
Portfolio of Investments at September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Investors Pennsylvania Municipal Cash Fund
---------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Securities* -- 81.2%
---------------------------------------------------------------------------------------------------------------------
Pennsylvania Obligations
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Pennsylvania State Higher Education
Educational Facilities Authority Revenue, Series B, 5.50% $ 1,225,000 $ 1,225,000
---------------------------------------------------------------------------------------------------------------------
Pennsylvania State Higher Education
Educational Facilities Authority Revenue, Series C, 5.60% 400,000 400,000
---------------------------------------------------------------------------------------------------------------------
Allegheny County
Industrial Development Authority, 5.40% 1,100,000 1,100,000
---------------------------------------------------------------------------------------------------------------------
Allentown
Hospital Authority Revenue, 5.50% 100,000 100,000
---------------------------------------------------------------------------------------------------------------------
Cambria County
Industrial Development Authority, 5.50% 1,525,000 1,525,000
---------------------------------------------------------------------------------------------------------------------
Dallastown Area School District
General Obligation, 5.60% 965,000 965,000
---------------------------------------------------------------------------------------------------------------------
Dauphin County
General Authority Revenue, 5.60% 1,200,000 1,200,000
---------------------------------------------------------------------------------------------------------------------
Delaware County
Industrial Development Authority, 5.60% 100,000 100,000
---------------------------------------------------------------------------------------------------------------------
Delaware Valley
Regional Financing Authority, 5.45% 700,000 700,000
---------------------------------------------------------------------------------------------------------------------
East Hempfield County
Industrial Development Authority, 5.60% 1,000,000 1,000,000
---------------------------------------------------------------------------------------------------------------------
Emmaus
General Authority Revenue, Series A, 5.62% 700,000 700,000
---------------------------------------------------------------------------------------------------------------------
Emmaus
General Authority Revenue, Series B, 5.65% 900,000 900,000
---------------------------------------------------------------------------------------------------------------------
Erie County
Hospital Authority Revenue, 5.50% 100,000 100,000
---------------------------------------------------------------------------------------------------------------------
Gettysburg
Industrial Development Authority, 5.40% 700,000 700,000
---------------------------------------------------------------------------------------------------------------------
Gettysburg
Industrial Development Authority, 5.55% 100,000 100,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Indiana County
Industrial Development Authority, 5.65% $ 900,000 $ 900,000
---------------------------------------------------------------------------------------------------------------------
Lancaster County
General Obligation, 5.60% 300,000 300,000
---------------------------------------------------------------------------------------------------------------------
Lancaster County
Hospital Authority Revenue, 5.62% 900,000 900,000
---------------------------------------------------------------------------------------------------------------------
Lebanon County
Health Center Revenue, 5.62% 600,000 600,000
---------------------------------------------------------------------------------------------------------------------
Lehigh County
Industrial Development Authority, 4.35% 280,000 280,000
---------------------------------------------------------------------------------------------------------------------
Northumberland County
Industrial Development Authority, 5.60% 885,000 885,000
---------------------------------------------------------------------------------------------------------------------
Quakertown
Hospital Authority Revenue, 5.55% 900,000 900,000
---------------------------------------------------------------------------------------------------------------------
Schuylkill County
Industrial Development Authority, 5.45% 600,000 600,000
---------------------------------------------------------------------------------------------------------------------
State Public School
Building Authority Revenue, Series D, 5.60% 595,000 595,000
---------------------------------------------------------------------------------------------------------------------
Venango
Industrial Development Authority, Pollution Control Revenue, 5.10% 285,000 285,000
---------------------------------------------------------------------------------------------------------------------
Washington County
Authority Lease Revenue, Higher Education Lease Revenue, 5.50% 910,000 910,000
---------------------------------------------------------------------------------------------------------------------
Other Obligations
---------------------------------------------------------------------------------------------------------------------
Texas
Grapevine
Industrial Development Authority, 5.50% 1,000,000 1,000,000
---------------------------------------------------------------------------------------------------------------------
Washington
Health Care Facilities Authority Revenue, 5.50% 500,000 500,000
---------------------------------------------------------------------------------------------------------------------
Total Variable Rate Demand Securities (Cost $19,470,000) 19,470,000
---------------------------------------------------------------------------------------------------------------------
Other Securities -- 18.8%
---------------------------------------------------------------------------------------------------------------------
Pennsylvania State
General Obligation, 4.05%, 11/9/2000 300,000 300,000
---------------------------------------------------------------------------------------------------------------------
Pennsylvania State
General Obligation, 4.25%, 11/9/2000 1,000,000 1,000,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Beaver County Duquesne
Industrial Development Authority, 4.20%, 11/10/2000 $ 1,000,000 $ 1,000,000
---------------------------------------------------------------------------------------------------------------------
Delaware County
Industrial Development Authority, 4.25%, 10/13/2000 200,000 200,000
---------------------------------------------------------------------------------------------------------------------
Montgomery County
Industrial Development Authority, 4.20%, 11/9/2000 1,000,000 1,000,000
---------------------------------------------------------------------------------------------------------------------
Montgomery County
Industrial Development Authority, 4.20%, 11/13/2000 500,000 500,000
---------------------------------------------------------------------------------------------------------------------
Montgomery County
Industrial Development Authority, 4.25%, 11/13/2000 500,000 500,000
---------------------------------------------------------------------------------------------------------------------
Total Other Securities (Cost $4,500,000) 4,500,000
---------------------------------------------------------------------------------------------------------------------
Total Investment Portfolio -- 100% (Cost $23,970,000) (a) $ 23,970,000
---------------------------------------------------------------------------------------------------------------------
</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 $23,970,000.
* 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 September 30, 2000 and are payable within five business
days.
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
Portfolio of Investments at September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Investors Florida Municipal Cash Fund
---------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Securities* -- 73.5%
---------------------------------------------------------------------------------------------------------------------
Florida Obligations
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alachua County
Health Facilities Authority, 4.40% $ 330,000 $ 330,000
---------------------------------------------------------------------------------------------------------------------
Alachua County
Health Facilities Authority, 4.50% 250,000 250,000
---------------------------------------------------------------------------------------------------------------------
Alachua County
Health Facilities Authority, 5.55% 1,400,000 1,400,000
---------------------------------------------------------------------------------------------------------------------
Broward County
Industrial Development Authority, 5.85% 170,000 170,000
---------------------------------------------------------------------------------------------------------------------
Capital Projects Financing Authority, 5.50% 1,600,000 1,600,000
---------------------------------------------------------------------------------------------------------------------
Citrus Park
Community Development Authority, 5.45% 1,185,000 1,185,000
---------------------------------------------------------------------------------------------------------------------
Collier County
Cleveland Clinic 99, 5.45% 1,600,000 1,600,000
---------------------------------------------------------------------------------------------------------------------
Dade County
Aviation Facilities Authority, 5.45% 975,000 975,000
---------------------------------------------------------------------------------------------------------------------
Dade County
Dolphins Stadium Project, 5.55% 1,030,000 1,030,000
---------------------------------------------------------------------------------------------------------------------
Dade County
Spectrum Programs, Inc. Project, 5.75% 745,000 745,000
---------------------------------------------------------------------------------------------------------------------
Escambia County
Health Facilities Authority, 4.50% 250,000 250,000
---------------------------------------------------------------------------------------------------------------------
Gulf Breeze Revenue, 5.50% 1,770,000 1,770,000
---------------------------------------------------------------------------------------------------------------------
Hillsborough County
Industrial Development Authority, 5.65% 1,500,000 1,500,000
---------------------------------------------------------------------------------------------------------------------
Hillsborough County
Industrial Development Authority, 5.70% 400,000 400,000
---------------------------------------------------------------------------------------------------------------------
Hillsborough County
Industrial Development Authority, 5.75% 1,800,000 1,800,000
---------------------------------------------------------------------------------------------------------------------
Jacksonville
Health Facilities Authority, 5.75% 500,000 500,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Jacksonville
Industrial Development Authority, 5.50% $ 3,000,000 $ 3,000,000
---------------------------------------------------------------------------------------------------------------------
Orange County
Health Facilities Authority Revenue, 5.55% 1,480,000 1,480,000
---------------------------------------------------------------------------------------------------------------------
Orange County
Housing Finance Authority Revenue, 5.70% 1,750,000 1,750,000
---------------------------------------------------------------------------------------------------------------------
Orange County
Health Facilities Authority Revenue, 5.75% 300,000 300,000
---------------------------------------------------------------------------------------------------------------------
Putnam County
Development Authority Pollution Control Revenue, 5.25% 825,000 825,000
---------------------------------------------------------------------------------------------------------------------
Putnam County
Development Authority Pollution Control Revenue, 5.25% 2,445,000 2,445,000
---------------------------------------------------------------------------------------------------------------------
St. Lucie County
Pollution Control Revenue, Florida Power and Light, 5.50% 2,050,000 2,050,000
---------------------------------------------------------------------------------------------------------------------
Sunshine State Government Finance Authority, 5.50% 1,500,000 1,500,000
---------------------------------------------------------------------------------------------------------------------
Other Obligations
---------------------------------------------------------------------------------------------------------------------
Pennsylvania
General Purpose Authority Revenue, Series A, 5.45% 500,000 500,000
---------------------------------------------------------------------------------------------------------------------
Washington State
Health Care Facilities Authority Revenue, 5.50% 1,500,000 1,500,000
---------------------------------------------------------------------------------------------------------------------
Total Variable Rate Demand Securities (Cost $30,855,000) 30,855,000
---------------------------------------------------------------------------------------------------------------------
Other Securities -- 26.5%
---------------------------------------------------------------------------------------------------------------------
Dade County Aviation Facilities Authority, 4.40%, 12/12/2000 3,000,000 3,000,000
---------------------------------------------------------------------------------------------------------------------
Florida Municipal Power Agency, 4.25%, 10/11/2000 1,000,000 1,000,000
---------------------------------------------------------------------------------------------------------------------
Florida Municipal Power Agency, 4.25%, 10/26/2000 884,000 884,000
---------------------------------------------------------------------------------------------------------------------
Gainesville Utilities Systems Revenue, 4.25%, 10/12/2000 1,000,000 1,000,000
---------------------------------------------------------------------------------------------------------------------
Gainesville Utilities Systems Revenue, 4.30%, 11/8/2000 430,000 430,000
---------------------------------------------------------------------------------------------------------------------
Jacksonville Electric Revenue, 4.40%, 12/11/2000 726,000 726,000
---------------------------------------------------------------------------------------------------------------------
Orange County Health Facilities Authority, 4.88%, 10/18/2000 1,000,000 1,000,000
---------------------------------------------------------------------------------------------------------------------
Orlando Capital Improvement Revenue, 4.25%, 11/10/2000 1,400,000 1,400,000
---------------------------------------------------------------------------------------------------------------------
Pinellas County Education Facilities Authority, 4.88%, 10/23/2000 1,500,000 1,500,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Sarasota County Hospital Revenue, 4.30%, 10/18/2000 $ 200,000 $ 200,000
---------------------------------------------------------------------------------------------------------------------
Total Other Securities (Cost $11,140,000) 11,140,000
---------------------------------------------------------------------------------------------------------------------
Total Investment Portfolio -- 100% (Cost $41,995,000) (a) $ 41,995,000
---------------------------------------------------------------------------------------------------------------------
</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 $41,995,000.
* 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 September 30, 2000 and are payable within five business
days.
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
Portfolio of Investments at September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Investors New Jersey Municipal Cash Fund
---------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Securities* -- 82.2%
---------------------------------------------------------------------------------------------------------------------
New Jersey Obligations
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
New Jersey Economic Development Authority,
AIRIS Newark Project, 5.40% $ 2,200,000 $ 2,200,000
---------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
Blair Academy, School Revenue, 5.25% 1,000,000 1,000,000
---------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
Dow Chemical Company, El Dorado Terminals Revenue, 5.45% 3,700,000 3,700,000
---------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
Foreign Trade Zone Project, 5.60% 2,000,000 2,000,000
---------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
400 International Drive Partners, 5.30% 3,800,000 3,800,000
---------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
General Motors Project, 5.40% 1,105,000 1,105,000
---------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
National Utility Investors Corp. Project, 5.50% 300,000 300,000
---------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
Natural Gas Co. Project, 5.15% 1,200,000 1,200,000
---------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
Public Service Electric and Gas Co., 5.05% 2,900,000 2,900,000
---------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
Stolthaven Project, Series A, 5.45% 1,500,000 1,500,000
---------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
Thermal Energy Facilities Revenue, 5.45% 2,100,000 2,100,000
---------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority,
Water Facilities Revenue, 5.50% 2,000,000 2,000,000
---------------------------------------------------------------------------------------------------------------------
New Jersey Healthcare Facilities Financing Authority,
Hospital Capital Asset Financing, 5.20% 3,100,000 3,100,000
---------------------------------------------------------------------------------------------------------------------
New Jersey Healthcare Facilities Financing Authority,
Pascack Community Services, 5.20% 300,000 300,000
---------------------------------------------------------------------------------------------------------------------
New Jersey Sports and Exposition Authority, 5.40% 4,600,000 4,600,000
---------------------------------------------------------------------------------------------------------------------
New Jersey Turnpike Authority Revenue, Series D, 5.30% 5,700,000 5,700,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Essex County
Improvement Authority Revenue, 5.00% $ 3,800,000 $ 3,800,000
---------------------------------------------------------------------------------------------------------------------
Somerset County
Pollution Control Revenue, 5.50% 1,200,000 1,200,000
---------------------------------------------------------------------------------------------------------------------
Union County
Pollution Control Revenue, 4.50%-4.65% 3,800,000 3,800,000
---------------------------------------------------------------------------------------------------------------------
Other Obligations
---------------------------------------------------------------------------------------------------------------------
Alabama
Phenix County, Industrial Development Board,
Environmental Improvement Revenue, 5.55% 2,500,000 2,500,000
---------------------------------------------------------------------------------------------------------------------
California
Los Angeles Regional Airport Improvement Corp., Lease Revenue, 5.50% 1,890,000 1,890,000
---------------------------------------------------------------------------------------------------------------------
Delaware
Delaware River & Bay Authority Revenue, 5.50% 1,000,000 1,000,000
---------------------------------------------------------------------------------------------------------------------
New York
Job Development Authority, 5.50% 1,400,000 1,400,000
---------------------------------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey,
Versatile Structure Special Obligation Revenue, 5.45% 3,400,000 3,400,000
---------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth
Highway and Transportation Authority Revenue, 4.50% 1,000,000 1,000,000
---------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth
Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority, 2.60% 3,800,000 3,800,000
---------------------------------------------------------------------------------------------------------------------
Washington
Health Care Facilities Authority Revenue, 5.50% 900,000 900,000
---------------------------------------------------------------------------------------------------------------------
Total Variable Rate Demand Securities (Cost $62,195,000) 62,195,000
---------------------------------------------------------------------------------------------------------------------
Other Securities -- 17.8%
---------------------------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority, 3.85%, 10/12/2000-10/17/2000 1,900,000 1,900,000
---------------------------------------------------------------------------------------------------------------------
New Jersey Educational Facilities, Princeton, 3.80%-3.85%, 10/11/2000-11/10/2000 2,000,000 2,000,000
---------------------------------------------------------------------------------------------------------------------
New Jersey Port Authority, 4.10%-4.15%, 11/8/2000-11/10/2000 4,350,000 4,350,000
---------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth
Government Development Bank, 3.85%, 2/20/2001 3,200,000 3,200,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Salem County Pollution Control Revenue, 4.10%, 11/10/2000 $ 2,000,000 $ 2,000,000
---------------------------------------------------------------------------------------------------------------------
Total Other Securities (Cost $13,450,000) 13,450,000
---------------------------------------------------------------------------------------------------------------------
Total Investment Portfolio -- 100% (Cost $75,645,000) (a) $ 75,645,000
---------------------------------------------------------------------------------------------------------------------
</TABLE>
Interest rates represent yield to date of maturity, except for variable
rate securities described below.
(a) Cost for federal income tax purposes was $75,645,000.
* 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 September 30, 2000 and are payable within five business
days.
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
Portfolio of Investments at September 30, 2000 (Unaudited)
<TABLE>
<S> <C> <C>
Principal
Amount Value
-----------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Investors Michigan Municipal Cash Fund
------------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Securities*-- 85.2%
------------------------------------------------------------------------------------------------------------------------
Michigan Obligations
------------------------------------------------------------------------------------------------------------------------
Michigan Higher Education Authority,
Student Loan, 5.50% $ 800,000 $ 800,000
------------------------------------------------------------------------------------------------------------------------
Michigan Hospital Financing Authority,
Covenant Retirement, Series A, 5.45% 430,000 430,000
------------------------------------------------------------------------------------------------------------------------
Michigan Hospital Financing Authority,
Equipment Loan Program, Series A, 5.50% 1,200,000 1,200,000
------------------------------------------------------------------------------------------------------------------------
Michigan Hospital Financing Authority,
Mt. Clemens General Hospital, 5.60% 800,000 800,000
------------------------------------------------------------------------------------------------------------------------
Michigan Housing Development Authority,
Laurel Valley, 5.50% 500,000 500,000
------------------------------------------------------------------------------------------------------------------------
Michigan Housing Development Authority,
Multi-Family Revenue, River Place Apartments, 5.65% 1,400,000 1,400,000
------------------------------------------------------------------------------------------------------------------------
Michigan Job Development Authority,
Gordon Food Service, Inc. Project, 5.60% 1,100,000 1,100,000
------------------------------------------------------------------------------------------------------------------------
Michigan Strategic Fund,
Continental Aluminum Project, 5.75% 400,000 400,000
------------------------------------------------------------------------------------------------------------------------
Michigan Strategic Fund,
Creative Foam Corp. Project, 5.75% 400,000 400,000
------------------------------------------------------------------------------------------------------------------------
Michigan Strategic Fund,
General Motors Corp. Project, Series A, 5.50% 1,200,000 1,200,000
------------------------------------------------------------------------------------------------------------------------
Michigan Strategic Fund,
Hope Network, Inc. Project, Series A, 5.55% 400,000 400,000
------------------------------------------------------------------------------------------------------------------------
Michigan Strategic Fund,
Obligation Revenue, 5.55% 1,200,000 1,200,000
------------------------------------------------------------------------------------------------------------------------
Michigan State University,
General Revenue, Series A, 5.55% 1,000,000 1,000,000
------------------------------------------------------------------------------------------------------------------------
Michigan State University,
Higher Education Authority, 5.50% 100,000 100,000
------------------------------------------------------------------------------------------------------------------------
University of Michigan,
Hospital Revenue, Series A, 5.55% 1,000,000 1,000,000
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
Principal
Amount Value
------------------------------------------------------------------------------------------------------------------------
University of Michigan,
Hospital Revenue, Series A, 5.55% $ 1,250,000 $ 1,250,000
------------------------------------------------------------------------------------------------------------------------
Bruce Township
Health Care Systems Revenue, Series B, 5.40% 700,000 700,000
------------------------------------------------------------------------------------------------------------------------
Detroit
Sewage Disposal Revenue, Series A, 5.50% 1,100,000 1,100,000
------------------------------------------------------------------------------------------------------------------------
Farmington Hills
Economic Development Authority, 5.50% 340,000 340,000
------------------------------------------------------------------------------------------------------------------------
Garden City
Hospital Revenue, Series A, 5.50% 700,000 700,000
------------------------------------------------------------------------------------------------------------------------
Genesee County
Economic Development Authority, 5.75% 400,000 400,000
------------------------------------------------------------------------------------------------------------------------
Grand Rapids
Water Supply Revenue, 5.50% 1,100,000 1,100,000
------------------------------------------------------------------------------------------------------------------------
Green Lake Township
Economic Development Corp., 5.50% 1,000,000 1,000,000
------------------------------------------------------------------------------------------------------------------------
Oakland County
------------------------------------------------------------------------------------------------------------------------
Sterling Heights
Economic Development Corp., 5.75% 700,000 700,000
------------------------------------------------------------------------------------------------------------------------
Wayne County
Airport Revenue, Series B, 5.50% 1,100,000 1,100,000
------------------------------------------------------------------------------------------------------------------------
Other Obligations
------------------------------------------------------------------------------------------------------------------------
Alabama
Industrial Development Board Environmental
Improvement Revenue, Series A, 5.55% 250,000 250,000
------------------------------------------------------------------------------------------------------------------------
Georgia
Pollution Control Revenue, Georgia Power, 5.60% 400,000 400,000
------------------------------------------------------------------------------------------------------------------------
Indiana
Pollution Control Revenue, Series C, 5.55% 500,000 500,000
------------------------------------------------------------------------------------------------------------------------
Washington
Health Care Facilities Authority Revenue, Series C, 5.50% 800,000 800,000
------------------------------------------------------------------------------------------------------------------------
Total Variable Rate Demand Securities (Cost $22,470,000) 22,470,000
------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
Principal
Amount Value
------------------------------------------------------------------------------------------------------------------------
Other Securities -- 14.8%
------------------------------------------------------------------------------------------------------------------------
Michigan
Strategic Fund, 4.30%, 11/13/2000 1,000,000 1,000,000
------------------------------------------------------------------------------------------------------------------------
Michigan
Strategic Fund, 4.25%, 12/11/2000 $ 1,500,000 $ 1,500,000
------------------------------------------------------------------------------------------------------------------------
Cornell Mead
Economic Development Corp., 4.25%, 10/11/2000 400,000 400,000
------------------------------------------------------------------------------------------------------------------------
Delta Mead
Economic Development Corp., 4.25%, 10/12/2000 1,000,000 1,000,000
------------------------------------------------------------------------------------------------------------------------
Total Other Securities (Cost $3,900,000) 3,900,000
------------------------------------------------------------------------------------------------------------------------
Total Investment Portfolio -- 100.0% (Cost $26,370,000) (a) $ 26,370,000
------------------------------------------------------------------------------------------------------------------------
</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 $26,370,000.
* 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 September 30, 2000 and are payable within five business
days.
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
Financial Statements
-------------------------------------------------------------------------------
Statement of Assets and Liabilities
-------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
as of September 30, 2000 (Unaudited) New York Pennsylvania Florida New Jersey Michigan
---------------------------------------------------------------------------------------------------------------------
Assets
---------------------------------------------------------------------------------------------------------------------
Investments in securities, at amortized
cost $ 188,609,000 23,970,000 41,995,000 75,645,000 26,370,000
---------------------------------------------------------------------------------------------------------------------
Cash -- 83,170 567,644 1,796,199 --
---------------------------------------------------------------------------------------------------------------------
Receivable for investments sold 300,000 -- 185,258 500,000 25,095
---------------------------------------------------------------------------------------------------------------------
Interest receivable 730,666 88,274 136,719 300,642 124,082
---------------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 1,664,027 311,314 1,031,258 1,260,357 957,520
---------------------------------------------------------------------------------------------------------------------
Other assets -- 7,829 -- -- 10,558
---------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------
Total assets 191,303,693 24,460,587 43,915,879 79,502,198 27,487,255
---------------------------------------------------------------------------------------------------------------------
Liabilities
---------------------------------------------------------------------------------------------------------------------
Due to custodian bank 1,201,239 -- -- -- 564,670
---------------------------------------------------------------------------------------------------------------------
Dividends payable 42,072 6,840 9,939 16,626 3,292
---------------------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed 2,632,158 283,391 1,227,809 2,966,889 257,356
---------------------------------------------------------------------------------------------------------------------
Accrued management fee 48,942 -- 28,577 17,745 --
---------------------------------------------------------------------------------------------------------------------
Other accrued expenses and payables 101,786 -- 35,129 88,282 --
---------------------------------------------------------------------------------------------------------------------
Total liabilities 4,026,197 290,231 1,301,454 3,089,542 825,318
---------------------------------------------------------------------------------------------------------------------
Net assets, at value $ 187,277,496 24,170,356 42,614,425 76,412,656 26,661,937
---------------------------------------------------------------------------------------------------------------------
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) 187,277,496 24,170,356 42,614,425 76,412,656 26,661,937
---------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
--------------------------------------------------------------------------------
Statement of Operations
-------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
Six months ended September 30, 2000
(Unaudited) New York Pennsylvania Florida New Jersey Michigan
---------------------------------------------------------------------------------------------------------------------
Investment Income
---------------------------------------------------------------------------------------------------------------------
Income:
---------------------------------------------------------------------------------------------------------------------
Interest $ 5,184,023 494,263 856,902 1,132,128 545,575
---------------------------------------------------------------------------------------------------------------------
Expenses:
---------------------------------------------------------------------------------------------------------------------
Management fee 275,444 25,121 43,687 61,667 27,862
---------------------------------------------------------------------------------------------------------------------
Services to shareholders 236,557 50,595 83,043 150,225 21,518
---------------------------------------------------------------------------------------------------------------------
Distribution services fees 626,012 57,094 99,289 140,154 39,464
---------------------------------------------------------------------------------------------------------------------
Custodian fees 5,323 849 4,817 4,765 1,565
---------------------------------------------------------------------------------------------------------------------
Auditing 75,101 2,325 13,299 15,112 4,519
---------------------------------------------------------------------------------------------------------------------
Legal 1,500 163 1,980 9,993 871
---------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 5,991 4,150 1,480 6,073 2,601
---------------------------------------------------------------------------------------------------------------------
Reports to shareholders 40,220 3,550 11,381 10,818 2,185
---------------------------------------------------------------------------------------------------------------------
Registration fees 185,531 3,218 10,431 25,111 2,434
---------------------------------------------------------------------------------------------------------------------
Other 4,083 223 1,394 9,570 7,694
---------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------
Total expenses, before expense reductions 1,455,762 147,288 270,801 433,488 110,713
---------------------------------------------------------------------------------------------------------------------
Expense reductions (415,645) (42,403) (88,242) (175,203) (15,728)
---------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------
Total expenses, after expense reductions 1,040,117 104,885 182,559 258,285 94,985
---------------------------------------------------------------------------------------------------------------------
Net investment income 4,143,906 389,378 674,343 873,843 450,590
---------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investment transactions
---------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from investments -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $ 4,143,906 389,378 674,343 873,843 450,590
---------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
New York Pennsylvania Florida
--------------------------------------------------------------------------------------------
Six Months Year Ended Six Months Year Ended Six Months Year Ended
Ended Ended
Ended September September 30, September 30,
30, 2000 March 31, 2000 March 31, 2000 March 31,
(Unaudited) 2000 (Unaudited) 2000 (Unaudited) 2000
---------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
---------------------------------------------------------------------------------------------------------------------
Operations:
---------------------------------------------------------------------------------------------------------------------
Net investment income $ 4,143,906 5,248,867 389,378 302,524 674,343 715,742
---------------------------------------------------------------------------------------------------------------------
Net realized gain (loss)
on investment
transactions -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from operations 4,143,906 5,248,867 389,378 302,524 674,343 715,742
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Distributions to
shareholders from net
investment income (4,143,906) (5,248,867) (388,378) (302,524) (674,343) (715,742)
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Fund share transactions at net asset value of $1.00 per share:
---------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold 572,013,732 1,282,361,905 87,200,814 133,031,398 165,645,565 271,865,669
---------------------------------------------------------------------------------------------------------------------
Reinvestment of
distributions 4,089,060 5,200,565 379,628 297,118 660,548 696,446
---------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed (631,180,765) (1,229,703,912) (84,523,715) (118,217,571) (161,135,544) (255,572,142)
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets from Fund
share transactions (55,077,973) 57,858,558 3,056,727 15,110,945 5,170,569 16,989,973
---------------------------------------------------------------------------------------------------------------------
Capital contribution
from Scudder Kemper (see
Note 5) -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Increase (decrease) in
net assets (55,077,973) 57,858,558 3,056,727 15,110,945 5,170,569 16,989,973
---------------------------------------------------------------------------------------------------------------------
Net assets at beginning
of period 242,355,716 184,497,158 21,113,629 6,002,684 37,443,856 20,453,883
---------------------------------------------------------------------------------------------------------------------
Net assets at end of
period $ 187,277,496 242,355,716 24,170,356 21,113,629 42,614,425 37,443,856
---------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C>
New Jersey Michigan
-------------------------------------------------------------
Six Months Six Months
Ended Ended
September 30, Year Ended September 30, Year Ended
2000 March 31, 2000 March 31,
(Unaudited) 2000 (Unaudited) 2000
---------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
---------------------------------------------------------------------------------------------------------------------
Operations:
---------------------------------------------------------------------------------------------------------------------
Net investment income $ 873,843 680,456 450,590 713,652
---------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investment transactions -- -- -- (203,000)
---------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 873,843 680,456 450,590 510,652
---------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------
Distributions to shareholders from net investment income (873,843) (680,456) (450,590) (713,652)
---------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------
Fund share transactions at net asset value of $1.00 per share:
---------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold 220,277,091 287,875,213 76,016,579 128,656,343
---------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 855,478 643,104 448,728 655,873
---------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed (191,894,047) (256,673,986) (73,016,696) (141,723,917)
---------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------
Net increase (decrease) in net assets from Fund share
transactions 29,238,522 31,844,331 3,448,611 (12,411,701)
---------------------------------------------------------------------------------------------------------------------
Capital contribution from Scudder Kemper (see Note 5) -- -- -- 203,000
---------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------
Increase (decrease) in net assets 29,238,522 31,844,331 3,448,611 (12,411,701)
---------------------------------------------------------------------------------------------------------------------
Net assets at beginning of period 47,174,134 15,329,803 23,213,326 35,625,027
---------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 76,412,656 47,174,134 26,661,937 23,213,326
---------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial 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.
--------------------------------------------------------------------------------
Tax-Exempt New York Money Market Fund
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Year ended March 31, 2000(c) 2000 1999 1998 1997 1996
---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 1.00 1.00 1.00 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Net investment income .02 .03 .02 .03 .03 .03
---------------------------------------------------------------------------------------------------------------------
Less distributions from net investment
income (.02) (.03) (.02) (.03) (.03) (.03)
---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00 1.00 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Total Return (%) (b) 1.67** 2.59 2.50 2.90 3.03 3.03
---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 187,277 242,356 184,497 104,198 60,575 18,527
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) 1.16* .97 .98 .98 .96 1.14
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) .83* .80 .80 .80 .44 .80
---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (%) 3.31* 2.58 2.41 2.83 2.96 2.95
---------------------------------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
Investors Pennsylvania Municipal Cash Fund
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C>
Year ended March 31, 2000(c) 2000 1999 1998(a)
---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Net investment income .02 .03 .02 .02
---------------------------------------------------------------------------------------------------------------------
Less distributions from net investment income (.02) (.03) (.02) (.02)
---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Total Return (%) (b) 1.72** 2.58 2.50 2.42**
---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 24,170 21,114 6,003 3,195
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) 1.29* 1.39 1.12 1.11*
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) .92* .90 .90 .90*
---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (%) 3.40* 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.
(c) For the six months ended September 30, 2000 (Unaudited).
* Annualized
** Not annualized
21
<PAGE>
--------------------------------------------------------------------------------
Investors Florida Municipal Cash Fund
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C>
Year ended March 31, 2000(d) 2000 1999 1998(a)
---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 1.00 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Net investment income .02 .02 .02 .02
---------------------------------------------------------------------------------------------------------------------
Less distributions from net investment income (.02) (.02) (.02) (.02)
---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Total Return (%) (c) 1.72** 2.57 2.50 2.41**
---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 42,614 37,444 20,454 7,611
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) 1.37* 1.13 1.09 .99*
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) .92* .90 .85 .90*
---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (%) 3.39* 2.58 2.36 2.74*
---------------------------------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
Investors New Jersey Municipal Cash Fund
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C>
Year ended March 31, 2000(d) 2000 1999 1998(b)
---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 1.00 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Net investment income .02 .02 .02 .02
---------------------------------------------------------------------------------------------------------------------
Less distributions from net investment income (.02) (.02) (.02) (.02)
---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 1.00 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Total Return (%) (c) 1.58** 2.38 2.26 2.22**
---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 76,413 47,174 15,330 4,665
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) 1.55* 1.13 1.12 1.12*
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) .92* .90 .90 .90*
---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (%) 3.11* 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.
(d) For the six months ended September 30, 2000 (Unaudited).
* Annualized
** Not annualized
22
<PAGE>
--------------------------------------------------------------------------------
Investors Michigan Municipal Cash Fund
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Year ended March 31, 2000(d) 2000 1999(a)
---------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Net investment income .02 .03 .02
---------------------------------------------------------------------------------------------------------------------
Less distributions from net investment income (.02) (.03) (.02)
---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 1.00
---------------------------------------------------------------------------------------------------------------------
Total Return (%) (b) 1.80** 2.77(c) 2.41**
---------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 26,662 23,213 35,625
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) .87* .91 .87*
---------------------------------------------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) .75* .75 .75*
---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (%) 3.56* 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.
(d) For the six months ended September 30, 2000 (Unaudited).
* 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 -- 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 accounting
principles generally accepted in the United States 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 0.22% of the first $500 million of average
daily net assets declining to 0.15%
24
<PAGE>
of average daily net assets in excess of $3 billion. For the six months ended
September 30, 2000, the Funds incurred the following management fees:
<TABLE>
<S> <C> <C>
Fund Management
fee Effective
imposed ($) rate (%)
---------------------------------------------------------------------------------------------------------------------
Tax-Exempt New York Money Market Fund 275,444 .22
---------------------------------------------------------------------------------------------------------------------
Investors Pennsylvania Municipal Cash Fund 25,121 .22
---------------------------------------------------------------------------------------------------------------------
Investors Florida Municipal Cash Fund 43,687 .22
---------------------------------------------------------------------------------------------------------------------
Investors New Jersey Municipal Cash Fund 61,667 .22
---------------------------------------------------------------------------------------------------------------------
Investors Michigan Municipal Cash Fund 27,862 .22
---------------------------------------------------------------------------------------------------------------------
</TABLE>
Distribution Agreement. Pursuant to a distribution services agreement, Kemper
Distributors, Inc. ("KDI") serves as distributor, administrator and principal
underwriter to each Fund. For distribution services, the Funds pays KDI an
annual fee of 0.33% of average daily net assets of each Fund. KDI has related
administration services agreements with various firms to provide cash management
and other services for each Fund's shareholders. Under these agreements, KDI
pays such firms at an annual rate ranging from 0.15% to 0.33% of the average
daily net assets of those accounts that they maintain and service. For the six
months ended September 30, 2000, the Funds incurred fees as follows:
<TABLE>
<S> <C> <C> <C>
Fund Distribution
Distribution fee waived Unpaid at
fee by Scudder September 30,
imposed ($) Kemper ($) 2000 ($)
---------------------------------------------------------------------------------------------------------------------
Tax-Exempt New York Money Market Fund 448,511 177,501 89,517
---------------------------------------------------------------------------------------------------------------------
Investors Pennsylvania Municipal Cash Fund 57,094 -- 14,321
---------------------------------------------------------------------------------------------------------------------
Investors Florida Municipal Cash Fund 94,335 4,954 --
---------------------------------------------------------------------------------------------------------------------
Investors New Jersey Municipal Cash Fund 115,303 24,851 59,951
---------------------------------------------------------------------------------------------------------------------
Investors Michigan Municipal Cash Fund 39,464 -- 7,537
---------------------------------------------------------------------------------------------------------------------
</TABLE>
KDI has related service agreements with various firms to provide cash management
and other services for Fund shareholders. KDI pays these firms based on the
average daily net assets of those accounts they maintain and service at an
annual rate of 0.50% for each Fund, except the Investors Michigan Municipal Cash
Fund, for which it pays firms at an annual rate of 0.35%.
Shareholder Services Agreement. Pursuant to a services agreement with the
Trust's transfer agent, Kemper Service Company ("KSvC") is the
25
<PAGE>
shareholder service agent of the Trust. For the six months ended September 30,
2000, KSvC received shareholder services fees as follows:
<TABLE>
<S> <C> <C> <C>
Fund Shareholder
Services
fee waived Unpaid at
Fee by Scudder September 30,
imposed ($) Kemper ($) 2000 ($)
---------------------------------------------------------------------------------------------------------------------
Tax-Exempt New York Money Market Fund -- 235,464 --
---------------------------------------------------------------------------------------------------------------------
Investors Pennsylvania Municipal Cash Fund 8,272 42,230 --
---------------------------------------------------------------------------------------------------------------------
Investors Florida Municipal Cash Fund -- 82,881 --
---------------------------------------------------------------------------------------------------------------------
Investors New Jersey Municipal Cash Fund -- 150,011 --
---------------------------------------------------------------------------------------------------------------------
Investors Michigan Municipal Cash Fund 6,217 15,198 10,569
---------------------------------------------------------------------------------------------------------------------
</TABLE>
Officers and Trustees. Certain officers or trustees of the Trust are also
officers or directors of Scudder Kemper. For the six months ended September 30,
2000, the Trust made no payments to its officers and incurred trustees' fees of
$19,194 to independent trustees.
3. Expense Off-Set Arrangements
Each Fund has entered into an arrangement with its custodian and transfer agent
whereby credits realized as a result of uninvested cash balances were used to
reduce a portion of each Fund's expenses. For the six months ended September 30,
2000, each Fund's custodian and transfer agent fees were reduced as follows:
<TABLE>
<S> <C> <C>
Fund Custodian Transfer
fee agent fee
reduction ($) reduction ($)
---------------------------------------------------------------------------------------------------------------------
Tax-Exempt New York Money Market Fund 1,587 1,093
---------------------------------------------------------------------------------------------------------------------
Investors Pennsylvania Municipal Cash Fund 79 93
---------------------------------------------------------------------------------------------------------------------
Investors Florida Municipal Cash Fund 244 162
---------------------------------------------------------------------------------------------------------------------
Investors New Jersey Municipal Cash Fund 128 214
---------------------------------------------------------------------------------------------------------------------
Investors Michigan Municipal Cash Fund 132 103
---------------------------------------------------------------------------------------------------------------------
</TABLE>
4. Line of Credit
Each Fund and several Kemper Funds (the "Participants") share in a $750 million
revolving credit facility with Chase Manhattan Bank 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 based on net assets, among
each of the Participants. Interest is calculated based on the market rates at
the time of the borrowing. Each Fund may borrow up to a maximum of 33 percent of
its net assets under the agreement.
26
<PAGE>
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
