<PAGE>
1996
-----------------
SEMIANNUAL REPORT
-----------------
April 30, 1996
(Unaudited)
Waterhouse
Investors Cash
Management
Fund, Inc.
...............................
Three portfolios to choose from
Money Market
U.S. Government
Municipal
WATERHOUSE SECURITIES, INC.
---------------------------
Member New York Stock Exchange o SIPC
National Headquarters
100 Wall Street o New York, New York 10005
CUSTOMER SERVICE
(800) 934-4410
[LOGO]
Investor Services
WSI #0344 Rev. 6/96
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TABLE OF CONTENTS
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Letter to Shareholders ....................3
Statements of Assets and Liabilities ......4
Statements of Operations ..................5
Statements of Changes in Net Assets .......6
Money Market Portfolio
Financial Highlights ...................7
U. S. Government Portfolio
Financial Highlights ...................8
Municipal Portfolio
Financial Highlights ...................9
Notes to Financial Statements ............10
Money Market Portfolio
Schedule of Investments ...............14
U. S. Government Portfolio
Schedule of Investments ...............17
Municipal Portfolio
Schedule of Investments ...............19
Notes to
Schedules of Investments ..............25
Board of Directors and
Executive Officers ....................26
Service Providers ........................27
<PAGE>
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DEAR SHAREHOLDER:
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I am pleased to provide you with the Waterhouse Investors Cash Management Fund
semiannual report for the period ended April 30, 1996.
Your decision to invest in the Fund is greatly appreciated. Since its inception
in December 1995, each of the Fund's Portfolios - Money Market, U.S. Government
and Municipal - recorded solid performances and achieved their objectives of
providing maximum current income from high quality money market securities while
maintaining a conservative portfolio to insure safety of principal.
Fund assets during the period increased to a total of $1.8 billion.
PORTFOLIO RESULTS*
For the period April 30, 1996, the Fund's three Portfolios had the following
annualized yields.
o The Money Market Portfolio had a net annualized yield of 4.92%.
o The U.S. Government Portfolio had a net annualized yield of 4.93%.
o The Municipal Portfolio had a net annualized yield of 3.19% and a tax
equivalent yield of 4.98%.
Modest economic growth and a low rate of inflation combined to keep interest
rates comparatively low throughout most of the first four months of 1996.
Recently, however, there have been signs that the growth of the economy is
possibly accelerating. Expectations of increased growth brings concerns of
renewed inflation as expressed recently by several Governors of the Federal
Reserve Board. Any decision by the Federal Reserve to raise interest rates in
order to contain inflation would obviously be positive for the short term money
markets.
We believe the Waterhouse Investors Cash Management Fund is well positioned to
take advantage of rising short-term interest rates.
In conjunction with the Waterhouse Investors Money Management Account - the
asset management account rated #1 by Kiplinger's Personal Finance Magazine - you
receive the added value and convenience of free checking & ATM access. If you
have not already set-up such an account and wish to do so, please call Customer
Service at 1-800-934-4410.
Thank you for investing in the Fund and for your confidence in Waterhouse. We
look forward to continuing to meet your expanding investment needs in the years
to come.
Sincerely,
/s/ Lawrence M. Waterhouse, Jr.
Lawrence M. Waterhouse, Jr.
Chairman and Chief Executive Officer
Waterhouse Investor Services, Inc.
* An investment in the Fund is not FDIC-insured and is not an obligation of, or
insured by, any bank, the U.S. Government or the Federal Reserve Board and there
can be no assurance that a Portfolio will be able to maintain a stable net asset
value of $1 per share. Taxable equivalent yield at 36% marginable federal income
tax rate.
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1996 Semiannual Report - April 30, 1996 (Unaudited) 3
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WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Money Market U.S. Government Municipal
Portfolio Portfolio Portfolio
<S> <C> <C> <C>
ASSETS
Investments in securities, at value (including
repurchase agreements of $89,130,000,
$26,363,000 and $0, respectively) (NOTE 2) $ 1,208,367,013 $ 307,012,111 $ 214,104,223
Cash 816 531 54,626
Interest receivable 2,928,339 616,420 1,561,846
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TOTAL ASSETS 1,211,296,168 307,629,062 215,720,695
LIABILITIES
Dividends payable to shareholders 2,241,026 577,501 268,589
Payable for securities purchased 5,065,172 - -
Payable to Investment Manager
and its affiliates (NOTE 3) 663,741 127,479 83,439
Accrued expenses and other liabilities 286,180 72,884 58,137
TOTAL LIABILITIES 8,256,119 777,864 410,165
NET ASSETS $ 1,203,040,049 $ 306,851,198 $ 215,310,530
=================================================================================================================
Net assets consist of:
Paid-in capital $ 1,203,039,863 $ 306,851,000 $ 215,310,378
Accumulated net realized gain from
security transactions 186 198 152
Net assets, at value $ 1,203,040,049 $ 306,851,198 $ 215,310,530
Shares outstanding ($.0001 par value common
stock, 60 billion, 20 billion and
20 billion shares authorized, respectively) 1,203,039,863 306,851,000 215,310,378
Net asset value, redemption price and
offering price per share (NOTE 2) $ 1.00 $ 1.00 $ 1.00
</TABLE>
Please see accompanying notes to financial statements.
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4
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WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
STATEMENTS OF OPERATIONS
For the Period Ended April 30, 1996* (Unaudited)
<TABLE>
<CAPTION>
Money Market U.S. Government Municipal
Portfolio Portfolio Portfolio
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income $ 17,917,525 $ 4,444,814 $ 2,061,060
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TOTAL INCOME 17,917,525 4,444,814 2,061,060
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EXPENSES
Investment management fees 1,157,590 292,767 152,651
Administration fees 331,939 83,648 61,060
Transfer agent fees 663,098 167,295 123,070
Shareholder servicing fees 663,879 142,203 66,867
Other expenses 286,180 72,884 58,137
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TOTAL EXPENSES 3,102,686 758,797 461,785
Fees waived / expenses reimbursed by the
Investment Manager and its affiliates (NOTE 3) (751,648) (245,456) (160,948)
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NET EXPENSES 2,351,038 513,341 300,837
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NET INVESTMENT INCOME 15,566,487 3,931,473 1,760,223
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NET REALIZED GAIN FROM SECURITY
TRANSACTIONS 186 198 152
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NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 15,566,673 $ 3,931,671 $ 1,760,375
==================================================================================================================
</TABLE>
*The Fund commenced operations on December 20, 1995.
Please see accompanying notes to financial statements.
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1996 Semiannual Report - April 30, 1996 (Unaudited) 5
<PAGE>
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WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
For the Period Ended April 30, 1996* (Unaudited)
<TABLE>
<CAPTION>
Money Market U.S. Government Municipal
Portfolio Portfolio Portfolio
<S> <C> <C> <C>
OPERATIONS
Net investment income $ 15,566,487 $ 3,931,473 $ 1,760,223
Net realized gain from security transactions 186 198 152
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Net increase in net assets from operations 15,566,673 3,931,671 1,760,375
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DISTRIBUTIONS TO SHAREHOLDERS FROM
NET INVESTMENT INCOME (15,566,487) (3,931,473) (1,760,223)
CAPITAL SHARE TRANSACTIONS
($1.00 PER SHARE)
Proceeds from shares sold 2,312,402,381 590,082,682 409,639,603
Shares issued in reinvestment of
dividends 13,325,461 3,353,972 1,491,634
Payments for shares redeemed (1,122,747,979) (286,605,654) (195,840,859)
- -------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
capital share transactions 1,202,979,863 306,831,000 215,290,378
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TOTAL INCREASE IN NET ASSETS 1,202,980,049 306,831,198 215,290,530
NET ASSETS
Beginning of period 60,000 20,000 20,000
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End of period $ 1,203,040,049 $ 306,851,198 $ 215,310,530
===================================================================================================================
</TABLE>
*The Fund commenced operations on December 20, 1995.
Please see accompanying notes to financial statements.
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6
<PAGE>
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WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS (Unaudited)
For the Period Ended April 30, 1996*
Contained below is per share operating performance data for a share of common
stock outstanding, total investment return, ratios to average net assets and
other supplemental data for the period indicated. This information has been
derived from the Portfolio's financial statements.
PER SHARE DATA
Net asset value, beginning of period $ 1.000
----------------------------------------------------------------
INVESTMENT OPERATIONS
Net investment income 0.018
----------------------------------------------------------------
DISTRIBUTIONS
Distributions from net investment income (0.018)
----------------------------------------------------------------
Net asset value, end of period $ 1.000
================================================================
Total investment return 4.92% (A)
================================================================
Net assets, end of period $ 1,203,040,049
================================================================
RATIOS / SUPPLEMENTAL DATA
Ratio of expenses to average net assets 0.71% (A)
Ratio of net investment income to
average net assets 4.69% (A)
Decrease reflected in above expense ratio due
to waivers / reimbursements by the
Investment Manager and its affiliates (NOTE 3) 0.23% (A)
*The Fund commenced operations on December 20, 1995.
(A) Annualized.
Please see accompanying notes to financial statements.
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1996 Semiannual Report - April 30, 1996 (Unaudited) 7
<PAGE>
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WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
U.S. GOVERNMENT PORTFOLIO
FINANCIAL HIGHLIGHTS (Unaudited)
For the Period Ended April 30, 1996*
Contained below is per share operating performance data for a share of common
stock outstanding, total investment return, ratios to average net assets and
other supplemental data for the period indicated. This information has been
derived from the Portfolio's financial statements.
PER SHARE DATA
Net asset value, beginning of period $ 1.000
----------------------------------------------------------------
INVESTMENT OPERATIONS
Net investment income 0.018
----------------------------------------------------------------
DISTRIBUTIONS
Distributions from net investment income (0.018)
----------------------------------------------------------------
Net asset value, end of period $ 1.000
================================================================
Total investment return 4.93% (A)
================================================================
Net assets, end of period $ 306,851,198
================================================================
RATIOS / SUPPLEMENTAL DATA
Ratio of expenses to average net assets 0.61% (A)
Ratio of net investment income to
average net assets 4.70% (A)
Decrease reflected in above expense ratio due
to waivers / reimbursements by the
Investment Manager and its affiliates (NOTE 3) 0.30% (A)
*The Fund commenced operations on December 20, 1995.
(A) Annualized.
Please see accompanying notes to financial statements.
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8
<PAGE>
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WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
MUNICIPAL PORTFOLIO
FINANCIAL HIGHLIGHTS (Unaudited)
For the Period Ended April 30, 1996*
Contained below is per share operating performance data for a share of common
stock outstanding, total investment return, ratios to average net assets and
other supplemental data for the period indicated. This information has been
derived from the Portfolio's financial statements.
PER SHARE DATA
Net asset value, beginning of period $ 1.000
----------------------------------------------------------------
INVESTMENT OPERATIONS
Net investment income 0.012
----------------------------------------------------------------
DISTRIBUTIONS
Distributions from net investment income (0.012)
----------------------------------------------------------------
Net asset value, end of period $ 1.000
================================================================
Total investment return 3.19% (A)
================================================================
Net assets, end of period $ 215,310,530
================================================================
RATIOS / SUPPLEMENTAL DATA
Ratio of expenses to average net assets 0.49% (A)
Ratio of net investment income to
average net assets 2.88% (A)
Decrease reflected in above expense ratio due
to waivers / reimbursements by the
Investment Manager and its affiliates (NOTE 3) 0.26% (A)
*The Fund commenced operations on December 20, 1995.
(A) Annualized.
Please see accompanying notes to financial statements.
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1996 Semiannual Report - April 30, 1996 (Unaudited) 9
<PAGE>
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WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS
April 30, 1996 (Unaudited)
NOTE 1 - ORGANIZATION
Waterhouse Investors Cash Management Fund, Inc. (the "Fund") was organized as a
Maryland corporation on August 16, 1995. The Fund is registered as an open-end,
diversified management investment company with the Securities and Exchange
Commission under the Investment Company Act of 1940, as amended (the "Act") and
the Securities Act of 1933. The Fund had no operations until December 20, 1995
(when operations commenced for all Portfolios) other than matters relating to
its organization and the sale and issuance of 60,000 shares of the Money Market
Portfolio and 20,000 shares each of the U.S. Government Portfolio and the
Municipal Portfolio ("Initial Shares").
Waterhouse Securities, Inc. absorbed all organizational expenses other than
securities registration fees. These fees have been deferred and will be
amortized from the date operations commenced, December 20, 1995, over a period
which it is expected that a benefit will be realized, not to exceed five years.
If any of the Initial Shares are redeemed during the amortization period by any
holder thereof, the redemption proceeds will be reduced by any unamortized
organizational costs of that Portfolio in the same proportion as the number of
Initial Shares being redeemed bears to the number of Initial Shares outstanding
of that Portfolio at the time of redemption.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the Fund's significant accounting policies:
Computation of Net Asset Value - It is the Fund's policy to maintain a
continuous net asset value of $1.00 per share for each Portfolio. The
Fund has adopted certain investment portfolio valuation, dividend and
distribution policies to enable it to do so. There is no assurance,
however, that each Portfolio will be able to maintain a stable net asset
value of $1.00 per share.
Securities Valuation - The Fund's securities are valued on the amortized
cost basis, which approximates market value. This involves initially
valuing a security at its original cost and thereafter assuming a
constant amortization to maturity of any discount or premium. This method
of valuation is expected to enable each Portfolio to maintain a constant
net asset value of $1.00 per share.
Repurchase Agreements - The Fund may enter into repurchase agreements
with financial institutions, deemed to be creditworthy by the Fund's
Investment Manager, subject to the seller's agreement to repurchase and
the Fund's agreement to resell such securities at a mutually agreed upon
price. Securities purchased subject to repurchase agreements are
deposited with the Fund's custodian and, pursuant to the terms of the
repurchase agreement, must have an aggregate market value greater than or
equal to the repurchase price plus accrued interest at all times. If the
value of the underlying securities falls below the value of the
repurchase price plus accrued interest, the Fund will require the seller
to deposit additional collateral by the next business day. If the request
for additional collateral is not met, or the seller defaults on its
repurchase obligation, the Fund maintains the right to sell the
underlying securities at market value and may claim any resulting loss
against the seller.
- --------------------------------------------------------------------------------
10
<PAGE>
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Investment Income - Interest income is accrued as earned. Discounts and
premiums on securities purchased are amortized in accordance with income
tax regulations which approximate generally accepted accounting
principles.
Distributions To Shareholders - Dividends arising from net investment
income are declared daily and paid monthly. With respect to each
Portfolio, net realized short-term capital gains, if any, may be
distributed during the year and net realized long-term capital gains, if
any, are distributed at least once each year. Income distributions and
capital gain distributions are determined in accordance with income tax
regulations.
Securities Transactions - Securities transactions are accounted for on
the trade date. Securities sold are valued on a specific identification
basis.
Expenses - Expenses directly attributable to each Portfolio are charged
to that Portfolio's operations. Expenses which are applicable to all
Portfolios are allocated on a pro rata basis.
Federal Income Taxes - It is each Portfolio's policy to comply with the
special provisions of the Internal Revenue Code available to regulated
investment companies. As provided therein, in any fiscal year in which a
Portfolio so qualifies, and distributes at least 90% of its taxable net
income, the Portfolio (but not the shareholders) will be relieved of
federal income tax on the income distributed. Accordingly, no provision
for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Portfolio's intention to declare as
dividends in each calendar year at least 98% of its net investment income
(earned during the calendar year) and 98% of its net realized capital
gains (earned during the twelve months ended October 31) plus
undistributed amounts from prior years.
NOTE 3 - INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH
AFFILIATES OF THE INVESTMENT MANAGER
Under the terms of an Investment Management Agreement with Waterhouse Asset
Management, Inc. (the "Investment Manager"), for the investment management
services furnished to each Portfolio, such Portfolio pays the Investment Manager
an annual investment management fee, on a graduated basis, equal to .35 of 1% of
the first $1 billion of average daily net assets of each such Portfolio, .34 of
1% of the next $1 billion, and .33 of 1% of average daily net assets of each
such Portfolio over $2 billion. The Investment Manager has agreed to waive a
portion of its fee payable by the Municipal Portfolio through October 31, 1997,
so that the actual fee payable annually by such Portfolio during such period
will be equal to .25 of 1% of its average daily net assets.
The Investment Manager has agreed to reimburse each Portfolio to the extent that
the aggregate expenses of such Portfolio (exclusive of interest, taxes,
brokerage and extraordinary expenses, all to the extent permitted by applicable
state law and regulation) exceed the limits prescribed by any state in which the
Portfolio's shares are qualified for sale. The Fund believes that the most
restrictive expense ratio limitation imposed by any state is 2 1/2% of the first
$30 million, 2% of the next $70 million and 1 1/2% of average net assets in
excess of $100 million of a Portfolio for any fiscal year. Expense
reimbursements, if any, will be accrued daily and paid monthly.
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1996 Semiannual Report - April 30, 1996 (Unaudited) 11
<PAGE>
- --------------------------------------------------------------------------------
For the period ended April 30, 1996, the Investment Manager voluntarily waived
$1,191, $852 and $1,643 of its investment management fee for the Money Market
Portfolio, the U.S. Government Portfolio and the Municipal Portfolio,
respectively.
The Investment Manager has also been retained under an Administration Agreement
to perform certain administrative services for the Fund. For the administrative
services rendered to the Fund, each Portfolio pays the Investment Manager a
monthly fee at an annual rate of .10 of 1% of each Portfolio's average net
assets. For the period ended April 30, 1996, the Investment Manager voluntarily
waived or reimbursed expenses of $340, $1,206 and $14,097 of its administration
fee for the Money Market Portfolio, the U.S. Government Portfolio and the
Municipal Portfolio, respectively.
Waterhouse Securities, Inc. ("Waterhouse Securities"), an affiliate of the
Investment Manager has been retained under a Shareholder Services Agreement to
perform shareholder servicing necessary for the operation of the Fund. The
shareholder service plan adopted by the Fund provides that each Portfolio pays
Waterhouse Securities a monthly fee at an annual rate of up to .25 of 1% of
average daily net assets. The Fund's Board has determined to limit the annual
fee payable through October 31, 1997, under the Shareholder Servicing Plan so as
not to exceed .20 of 1% of average daily net assets in the case of the Money
Market Portfolio, .17 of 1% of average daily net assets in the case of the U.S.
Government Portfolio and .11 of 1% of average daily net assets in the case of
the Municipal Portfolio. For the period ended April 30, 1996, Waterhouse
Securities voluntarily waived $598,879, $139,996 and $65,799 of its shareholder
servicing fee for the Money Market Portfolio, the U.S. Government Portfolio and
the Municipal Portfolio, respectively.
The Fund has entered into a Transfer Agency and Dividend Disbursing Agency
Agreement with Waterhouse National Bank (the "Bank"), an affiliate of the
Investment Manager, to perform transfer and dividend disbursing agency-related
services. For such services each Portfolio pays the Bank a monthly fee at an
annual rate of .20 of 1% of average daily net assets. For the period ended April
30, 1996, the Bank voluntarily waived $151,238, $103,402 and $79,409 of its
transfer agent fee for the Money Market Portfolio, the U.S. Government Portfolio
and the Municipal Portfolio, respectively.
Each Director who is not an "affiliated person" as defined in the Act receives
from the Fund $3,000 per quarter and $2,000 for each meeting attended.
NOTE 4 - OTHER
On April 10, 1996, Waterhouse Investor Services, Inc. ("Waterhouse") and The
Toronto-Dominion Bank (the "TD Bank") announced that they had signed a merger
agreement, providing for TD Bank to acquire Waterhouse through a merger of
Waterhouse into a newly formed subsidiary of TD Bank (the "Merger").
Consummation of the Merger is subject to satisfaction of a number of conditions,
including approval of the Merger by Waterhouse's stockholders and receipt of
certain regulatory approvals. Due to such requirements, it is currently
anticipated that consummation of the Merger will occur within four to six
months, from the date of the announcement.
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12
<PAGE>
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It is anticipated that management and employees of the Investment Manager and
its affiliates will remain unchanged following the Merger. Because of the
indirect change of control of the Investment Manager, consummation of the Merger
will result in the termination of the Investment Management Agreement between
the Investment Manager and the Fund. It is anticipated that a new Investment
Management Agreement containing substantially identical terms to the current
agreement will be submitted for approval to the Fund's Board of Directors and
shareholders prior to consummation of the Merger.
Certain other agreements between the Fund and the Investment Manager or its
affiliates, including the Administration Agreement, may also be deemed to
terminate upon consummation of the Merger. It is anticipated that new
agreements, substantially identical to the current agreements, will be submitted
for approval to the Fund's Board of Directors prior to consummation of the
Merger.
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1996 Semiannual Report - April 30, 1996 (Unaudited) 13
<PAGE>
WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE OBLIGATIONS:
ASSET-BACKED COMMERCIAL PAPER -- 12.2%
$ 30,000,000 Corporate Receivables Corp., due 5/13/96 (Note A) 5.36 $29,946,700
10,000,000 Corporate Receivables Corp., due 5/21/96 (Note A) 5.31 9,970,611
20,000,000 CXC, Inc., due 5/7/96 5.40 19,982,100
17,300,000 CXC, Inc., due 5/10/96 5.39 17,276,861
10,000,000 Eureka Securitization, due 5/17/96 (Note A) 5.37 9,976,356
15,000,000 Eureka Securitization, due 5/23/96 (Note A) 5.34 14,951,233
15,000,000 Eureka Securitization, due 6/21/96 (Note A) 5.35 14,887,800
30,000,000 McKenna Triangle National Corp., due 6/7/96 (Note A) 5.38 29,835,658
-----------
146,827,319
-----------
BROKER/DEALER COMMERCIAL PAPER -- 4.1%
15,000,000 Merrill Lynch & Co., Inc., due 5/16/96 5.35 14,966,688
25,000,000 Morgan Stanley Group, Inc., due 5/7/96 5.33 24,977,875
10,000,000 Morgan Stanley Group, Inc., due 11/14/96 5.48 9,710,520
-----------
49,655,083
-----------
CORPORATE NOTES AND BONDS -- 7.2%
6,000,000 Bankers Trust New York Corp., 7.25%, due 11/1/96 5.31 6,056,268
30,000,000 CIT Group Holdings, Inc., Variable Rate Notes, 5.38%, due
5/19/97 (Note B) 5.43 29,985,240
10,000,000 Ford Motor Credit Corp., Variable Rate Notes, 5.40%, due
2/18/97 (Note B) 5.22 10,011,823
5,000,000 Ford Motor Credit Corp.,Variable Rate Notes, 5.43%, due
5/5/97 (Note B) 5.40 5,001,440
20,000,000 Goldman Sachs Group, L.P., Variable Rate Note, 5.44%,
due 11/27/96 (Notes B,C) 5.44 20,000,000
5,750,000 Household Finance Corp., 10.125%, due 6/15/96 5.51 5,781,151
10,000,000 Morgan Stanley Group, Inc., Variable Rate Notes, 5.73%,
due 3/10/97 (Note B) 5.48 10,020,834
-----------
86,856,756
-----------
FINANCE AND INSURANCE COMPANY COMMERCIAL PAPER -- 12.7%
20,000,000 Bell South Capital Funding Corp., due 5/7/96 5.06 19,983,333
25,000,000 General Electric Capital Corp., due 5/3/96 5.36 24,992,667
30,000,000 Household Finance Corp., due 5/14/96 5.37 29,942,800
25,000,000 Swedish Export Credit Corp., due 5/15/96 5.35 24,948,861
15,500,000 Transamerica Finance Corp., due 5/10/96 5.35 15,479,346
5,000,000 Transamerica Finance Corp., due 6/17/96 5.29 4,965,925
18,500,000 USAA Capital Corp., due 5/14/96 5.12 18,466,263
14,200,000 Xerox Credit Corp., due 5/13/96 5.33 14,174,866
-----------
152,954,061
-----------
INDUSTRIAL AND OTHER COMMERCIAL PAPER -- 8.5%
10,000,000 Eli Lilly & Co., due 7/24/96 5.32 9,878,200
10,000,000 Eli Lilly & Co., due 7/31/96 5.32 9,868,050
11,975,000 Hanson Finance (UK) PLC, due 5/3/96 5.41 11,971,421
15,000,000 Hanson Finance (UK) PLC, due 5/20/96 5.40 14,957,408
13,000,000 Hanson Finance (UK) PLC, due 7/25/96 5.48 12,834,250
19,750,000 Metro Crest Hosp. Auth. (Letter of Credit - Bank of New York),
due 6/13/96 (Note D) 5.40 19,624,309
23,281,000 Southern California Gas Co., due 8/20/96 5.11 22,923,520
-----------
102,057,158
-----------
TOTAL CORPORATE OBLIGATIONS -- 44.7% 538,350,377
-----------
</TABLE>
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14
<PAGE>
WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BANK OBLIGATIONS:
BANKERS' ACCEPTANCE -- 2.0%
24,400,000 Republic Bank of New York, due 6/03/96 5.05 24,288,614
-----------
BANK NOTES -- 4.7%
16,000,000 Comerica Bank, Variable Rate Notes, 5.43%, due 5/19/97 (Note B) 5.39 16,006,020
40,000,000 First Bank, FSB, Variable Rate Notes, 5.47%, due 9/18/96 (Note B) 5.47 40,000,000
-----------
56,006,020
-----------
BANK HOLDING COMPANY COMMERCIAL PAPER -- 8.2%
15,000,000 BankAmerica Corp., due 5/24/96 5.30 14,949,400
25,000,000 BankAmerica Corp., due 6/14/96 5.29 24,840,500
20,000,000 Bankers Trust New York Corp., due 8/28/96 5.08 19,672,750
40,000,000 JP Morgan & Co., Inc., due 9/3/96 5.10 39,309,723
-----------
98,772,373
-----------
CERTIFICATES OF DEPOSIT -- 10.4%
40,000,000 Deutsche Bank (Eurodollar), 5.34%, due 5/17/96 5.34 40,000,000
25,000,000 Rabobank Nederland (Yankee), 5.31%, due 7/18/96 5.29 25,001,055
40,000,000 Societe Generale (Eurodollar), 5.37%, due 6/07/96 5.35 40,000,816
20,000,000 Toronto Dominion (Eurodollar), 5.10%, due 5/20/96 5.10 20,000,000
-----------
125,001,871
-----------
YANKEE BANK COMMERCIAL PAPER -- 10.3%
25,000,000 Abbey National North America, due 6/17/96 5.06 24,837,785
15,000,000 Abbey National North America, due 6/20/96 5.08 14,895,833
15,000,000 ABN AMRO N.A., due 6/10/96 5.07 14,917,000
20,000,000 ABN AMRO N.A., due 8/22/96 5.10 19,687,994
15,000,000 National Australia Funding Delaware, Inc., due 5/9/96 5.35 14,982,233
20,000,000 Svenska Handelsbanken NY, due 5/10/96 5.15 19,974,550
15,000,000 Svenska Handelsbanken NY, due 8/9/96 5.03 14,795,417
-----------
124,090,812
-----------
TOTAL BANK OBLIGATIONS -- 35.6% 428,159,690
U.S. GOVERNMENT AND AGENCIES OBLIGATIONS:
U.S. TREASURY BILLS -- 1.6%
20,000,000 U.S. Treasury Bills, due 2/6/97 5.08 19,243,642
-----------
FEDERAL FARM CREDIT BANK -- .8%
10,000,000 Discount Notes, due 1/27/97 4.95 9,643,936
-----------
FEDERAL HOME LOAN BANK -- 3.3%
40,000,000 Notes, 5.29%, due 3/5/97 5.30 39,996,597
-----------
FEDERAL NATIONAL MORTGAGE ASSOC. -- 2.9%
35,000,000 Variable Rate Notes, 5.24%, due 4/11/97 (Note B) 5.29 34,985,668
-----------
</TABLE>
- --------------------------------------------------------------------------------
1996 Semiannual Report - April 30, 1996 (Unaudited) 15
<PAGE>
WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
STUDENT LOAN MARKETING ASSOC. -- 4.1%
6,000,000 Variable Rate Notes, 5.48%, due 1/21/98 (Note B) 5.43 6,005,343
20,000,000 Variable Rate Notes, 5.32%, due 11/10/98 (Note B) 5.46 19,933,828
23,000,000 Variable Rate Notes, 5.33%, due 2/22/99 (Note B) 5.47 22,917,932
--------------
48,857,103
--------------
TOTAL U.S. GOVERNMENT AND AGENCIES OBLIGATIONS -- 12.7% 152,726,946
REPURCHASE AGREEMENTS -- 7.4%
89,130,000 Smith Barney Securities, Inc.,
dated 4/30/96, due 5/1/96 in the amount of $89,143,246, fully collateralized
by $138,763,940 U.S. Government Securities, value $90,412,258 5.35 89,130,000
--------------
TOTAL INVESTMENTS -- 100.4% 1,208,367,013
OTHER ASSETS AND LIABILITIES, NET -- (.4%) (5,326,964)
--------------
NET ASSETS -- 100.0% $1,203,040,049
==============
</TABLE>
Please see accompanying notes to the schedules
of investments and financial statements.
- --------------------------------------------------------------------------------
16
<PAGE>
WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
U.S. GOVERNMENT PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. TREASURY BILLS -- 1.6%
$ 5,000,000 U.S. Treasury Bills, due 2/6/97 5.08 $4,810,910
----------
FEDERAL FARM CREDIT BANK -- 19.1%
12,000,000 Discount Notes, due 5/2/96 5.26 11,998,257
10,025,000 Discount Notes, due 5/6/96 5.19 10,017,829
6,190,000 Discount Notes, due 5/9/96 5.19 6,182,916
10,000,000 Discount Notes, due 5/22/96 5.26 9,969,550
6,000,000 Discount Notes, due 6/14/96 5.26 5,961,940
4,500,000 Discount Notes, due 1/27/97 4.95 4,339,771
10,000,000 Variable Rate Notes, 5.33%, due 4/1/97 (Note B) 5.36 9,996,070
----------
58,466,333
----------
FEDERAL HOME LOAN BANK -- 27.7%
25,000,000 Discount Notes, due 5/14/96 5.23 24,953,597
10,000,000 Discount Notes, due 5/20/96 5.20 9,972,661
10,315,000 Discount Notes, due 6/4/96 4.94 10,267,557
10,000,000 Discount Notes, due 6/10/96 4.94 9,946,000
10,000,000 Discount Notes, due 8/5/96 5.23 9,863,200
10,000,000 Discount Notes, due 8/15/96 5.25 9,848,950
10,000,000 Notes, 5.29%, due 3/5/97 5.30 9,999,149
----------
84,851,114
----------
FEDERAL HOME LOAN MORTGAGE CORP. -- 10.4%
9,750,000 Discount Notes, due 5/6/96 5.04 9,743,257
7,432,000 Discount Notes, due 5/13/96 5.04 7,419,663
10,000,000 Discount Notes, due 6/17/96 5.25 9,932,372
5,000,000 Discount Notes, due 6/18/96 5.25 4,965,467
----------
32,060,759
----------
FEDERAL NATIONAL MORTGAGE ASSOC. -- 18.7%
10,000,000 Discount Notes, due 5/14/96 5.04 9,982,017
7,500,000 Discount Notes, due 5/17/96 5.06 7,483,333
5,000,000 Discount Notes, due 6/7/96 4.99 4,974,768
10,000,000 Discount Notes, due 7/10/96 4.91 9,906,472
15,000,000 Variable Rate Notes, 5.24%, due 4/11/97 (Note B) 5.29 14,993,858
10,000,000 Variable Rate Notes, 5.30%, due 5/2/97 (Note B) 5.37 9,993,186
----------
57,333,634
----------
STUDENT LOAN MARKETING ASSOC. -- 12.4%
2,750,000 Variable Rate Notes, 5.48%, due 1/21/98 (Note B) 5.43 2,752,212
25,500,000 Variable Rate Notes, 5.32%, due 11/10/98 (Note B) 5.46 25,415,631
10,000,000 Variable Rate Notes, 5.33%, due 2/22/99 (Note B) 5.47 9,964,318
----------
38,132,161
----------
</TABLE>
- --------------------------------------------------------------------------------
1996 Semiannual Report - April 30, 1996 (Unaudited) 17
<PAGE>
WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
U.S. GOVERNMENT PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TENNESSEE VALLEY AUTHORITY -- 1.6%
5,000,000 Discount Notes, due 5/9/96 5.26 4,994,200
------------
REPURCHASE AGREEMENTS -- 8.6%
26,363,000 Smith Barney Securities, Inc.,
dated 4/30/96, due 5/1/96 in the amount of $26,366,918, fully
collateralized by $99,927,686 U.S. Government Securities,
value $26,843,872 5.35 26,363,000
------------
TOTAL INVESTMENTS -- 100.1% 307,012,111
OTHER ASSETS AND LIABILITIES, NET -- (.1%) (160,913)
------------
NET ASSETS -- 100.0% $306,851,198
============
</TABLE>
Please see accompanying notes to the schedules
of investments and financial statements.
- --------------------------------------------------------------------------------
18
<PAGE>
WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS:
ALASKA -- 2.9%
$ 6,300,000 Valdez Marine Term., Ser. 1994A (ARCO Transp.),
3.45%, due 6/17/96 3.45 $6,300,000
----------
ARKANSAS -- 3.0%
6,400,000 Pulaski Co. VRDN (Chenel Park Apt. Proj.), 4.35% (Notes B,D) 4.35 6,400,000
----------
CALIFORNIA -- .4%
300,000 California Alternative Energy Source Fin. Auth.
VRDN, Ser. 1986, 3.70% (Notes B,D) 3.70 300,000
465,000 No. California Power Agency Public Power Rev., 6.40%, due
8/15/96 (Note D) 3.80 468,401
100,000 San Dimas, Redev. Agency VRDN, Ser. 1983 (Comm. Dev.),
3.35% (Notes B,D) 3.35 100,000
----------
868,401
----------
COLORADO -- 3.5%
300,000 Adams Co. IDR VRDN (City View Park Part.), Ser. 85, 4.15%
(Notes B,D) 4.15 300,000
7,200,000 Pueblo Co. IDR VRDN (Kaiser Aero Space Select Proj.), 4.30%
(Notes B,D) 4.30 7,200,000
----------
7,500,000
----------
CONNECTICUT -- .9%
2,000,000 Mashantucket (Western Pequot Tribe), Ser. 96, 3.35%, due
7/25/96 (Note D) 3.35 2,000,000
----------
DISTRICT OF COLUMBIA -- .1%
300,000 Dist. of Columbia, General Fund Recovery VRDN, Ser. B,
4.30% (Notes B,D) 4.30 300,000
----------
FLORIDA -- 5.4%
100,000 Clearwater Water & Sewer Rev., Ser. A, Prerefunded @ 102,
7.10%, due 12/1/96 (Note E) 3.85 103,808
250,000 Dade Co. Educ. Fac. Auth. Rev. (Florida Int'l. Univ.
Proj.), 3.50%, due 10/1/96 (Note D) 3.42 250,077
100,000 Florida Board of Educ. GO, Ser. A, Prerefunded @ 102,
7.50%, due 6/1/96 (Note E) 3.95 102,281
100,000 Florida HFA, Prerefunded @ 100, 5.50%, due 11/1/96
(Note E) 3.75 100,852
160,000 Florida HFA MFH VRDN, Ser. EEE (Carlton Arms II Proj.),
4.30% (Notes B,D) 4.30 160,000
100,000 Florida HFA VRDN, Ser. 1984 (Lakes of Northdale),
3.50% (Notes B,D) 3.50 100,000
1,700,000 Jacksonville Elec. Auth. Rev., 3.30%, due 5/17/96 (Note D) 3.30 1,700,000
4,000,000 Orange Co. Hlth. Facs. Auth. VRDN (Adventist Health
Sys./Sunbelt Oblig.), 4.10% (Notes B,D) 4.10 4,000,000
40,000 Orlando & Orange Co. Expressway Auth. Rev.,
Prerefunded @ 102, 7.50%, due 7/1/96 (Note E) 4.00 41,023
5,000,000 Sunshine State Gov't. Fin. Comm. Rev.
(Gov't Fin. Program), 3.50%, due 6/21/96 3.50 5,000,000
----------
11,558,041
----------
GEORGIA -- .9%
2,000,000 Fulco Hosp. Auth. Rev. (St. Joseph's Hosp. Proj.),
3.45%, due 5/31/96 (Note D) 3.45 2,000,000
----------
</TABLE>
- --------------------------------------------------------------------------------
1996 Semiannual Report - April 30, 1996 (Unaudited) 19
<PAGE>
WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
HAWAII -- 0%
100,000 Hawaii Dept. of Budget VRDN, Ser. 1988 (Wilcox Memorial
Hosp. Proj.), 4.90% (Notes B,D) 4.90 100,000
----------
ILLINOIS -- 14.6%
1,000,000 Arcola IDR VRDN (Herff Jones, Inc. Proj.), 4.30% (Notes B,D) 4.30 1,000,000
2,900,000 Chicago VRDN, Ser. A2 (Muni. Sec. Trust Receipts), 4.20%
(Notes B,D) 4.20 2,900,000
6,000,000 Chicago O'Hare Int'l Airport VRDN, Ser. A (Northwest
Airlines, Inc.), 4.45% (Notes B,D) 4.45 6,000,000
50,000 Cook Co. GO, 6.75%, due 11/1/96 (Note D) 3.65 50,757
100,000 Cook Co. GO, 3.80%, due 11/15/96 (Note D) 3.65 100,076
500,000 Illinois GO, 4.50%, due 8/1/96 3.60 501,089
2,900,000 Illinois Dev. Fin. Auth. VRDN, Ser. 85 (CPL/Downer's Grove
Partnership Ltd. Proj.), 4.10% (Notes B,D) 4.10 2,900,000
100,000 Illinois Dev. Fin. Auth. VRDN (Tempco Elec.), 4.25% (Notes B,D) 4.25 100,000
800,000 Illinois Hlth. Fac. Auth., Ser. A (Servant Corp. Proj.), 4.70%,
due 8/15/96 (Note D) 3.80 801,988
3,500,000 Illinois Hlth. Fac. Auth. Rev. (Rush Presbyterian-St. Luke's
Med. Ctr.), 3.45%, due 6/7/96 (Note D) 3.45 3,500,000
4,000,000 Illinois Hlth. Fac. Auth. Rev. (Rush Presbyterian-St. Luke's
Med. Ctr.), 3.40%, due 8/15/96 (Note D) 3.40 4,000,000
7,000,000 Illinois Stud. Assist. Comm. Stud. Loan VRDN, Ser. A, 4.30%
(Notes B,D) 4.30 7,000,000
2,600,000 Oak Lawn IDR VRDN (Lavergne Partners Proj.), 4.30% (Notes B,D) 4.30 2,600,000
----------
31,453,910
----------
INDIANA -- 5.2%
10,000 Auburn VRDN, Ser. 88 (RJ Tower Corp. Proj.), 4.45% (Notes B,D) 4.45 10,000
2,235,000 Indiana Hlth. Fac. Fin. VRDN (Comm. Hlth. & Rehab.), 4.70%
(Notes B,D) 4.70 2,235,000
2,000,000 Mt. Vernon Poll. Control & Solid Waste Rev., Ser. 89A (General
Electric Co. Proj.), 3.20%, due 6/14/96 3.20 2,000,000
7,000,000 Sullivan (Hoosier Energy Rural Elec. Coop.), 3.45%, due 6/20/96
(Note D) 3.45 7,000,000
----------
11,245,000
----------
IOWA -- 0%
100,000 Dubuque IDR VRDN (Swiss Farms Proj.), 4.55% (Notes B,D) 4.55 100,000
----------
KENTUCKY -- 4.0%
200,000 Boone Co. VRDN, Ser. 85A (Cincinnati Gas & Elec.), 3.50%
(Notes B,D) 3.50 200,000
6,900,000 Daviess Co. - Kimberly Clark VRDN, Ser. 93A (Scott Paper),
4.30% (Notes B,D) 4.30 6,900,000
1,500,000 Daviess Co. - Kimberly Clark VRDN, Ser. 94B (Scott Paper),
4.30% (Notes B,D) 4.30 1,500,000
100,000 Warsaw IDR VRDN (SDI Operating Partners), 4.30% (Notes B,D) 4.30 100,000
----------
8,700,000
----------
LOUISIANA -- .3%
195,000 East Baton Rouge Parish New Public Hsg. Auth. Rev., 4.88%,
due 8/1/96 (Note D) 3.60 195,603
75,000 Louisiana GO, Ser. B, Prerefunded @ 102, 8.00%, due 5/1/97
(Note E) 4.10 79,274
250,000 Louisiana Recovery Dist. Sales Tax Rev., 7.38%, due 7/1/96
(Note D) 3.55 251,576
100,000 New Orleans Exhib. Hall Auth. Hotel Occupancy Tax Rev., 5.13%,
due 7/15/96 (Note D) 3.60 100,304
----------
626,757
----------
</TABLE>
- --------------------------------------------------------------------------------
20
<PAGE>
WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MAINE -- .1%
300,000 Maine Tax Anticipation Notes, 4.50%, due 6/28/96 3.50 300,429
----------
MARYLAND -- 3.0%
6,000,000 Maryland CDA Hsg. & Comm. Dev. Rev., 2nd Ser. 96, 3.55%,
due 10/1/96 3.55 6,000,000
350,000 Montgomery Co. Pub. Improvement GO, Ser. B, 6.80%, due 10/1/96 3.50 354,736
----------
6,354,736
----------
MASSACHUSETTS -- 2.3%
5,000,000 Massachusetts Bay Transp. Auth. Rev., Ser. C, 3.40%, due
5/30/96 (Note D) 3.40 5,000,000
----------
MICHIGAN -- 4.2%
7,000,000 Greater Detroit Res. Rec. Auth. Rev., Ser. A, 4.50%, due
12/13/96 3.75 7,031,274
2,000,000 Michigan Bldg. Auth. Rev., 3.50%, due 5/7/96 (Note D) 3.50 2,000,000
----------
9,031,274
----------
MISSOURI -- .1%
110,000 Missouri GO, Prerefunded @ 102, 7.05%, due 8/1/96 (Note E) 3.50 113,147
----------
MONTANA -- 6.3%
6,000,000 Montana Board of Investments VRDN (Payroll Tax Workers' Comp.),
4.05% (Note B) 4.05 6,000,000
7,500,000 Montana Tax & Revenue Anticipation Notes, 4.50%, due 6/30/96 3.25 7,514,801
----------
13,514,801
----------
NEBRASKA -- .1%
250,000 Lincoln Waterworks Rev., 4.60%, due 8/15/96 4.60 250,511
----------
NEVADA -- 4.5%
300,000 Nevada Director IDR VRDN, Ser. 91A (Pilot Co. Proj.), 4.40%
(Notes B,D) 4.40 300,000
3,500,000 Nevada Hsg. SFM Rev., 3.55%, due 10/1/96 (Note D) 3.55 3,500,000
2,050,000 Washoe Co. Ser. 90 (Sierra Pacific Power Co. Proj.), 3.35%,
due 5/22/96 (Note D) 3.35 2,050,000
2,800,000 Washoe Co. Ser. 90 (Sierra Pacific Power Co. Proj.), 3.50%,
due 6/19/96 (Note D) 3.50 2,800,000
1,000,000 Washoe Co. Ser. 92 (Sierra Pacific Power Co. Proj.), 3.35%,
due 8/8/96 (Note D) 3.35 1,000,000
----------
9,650,000
----------
NEW HAMPSHIRE -- 0%
100,000 New Hampshire Bus. Fin. Auth. PCR VRDN, Ser. 92D (Public
Service of NH), 4.25% (Notes B,D) 4.25 100,000
----------
NEW JERSEY -- 2.1%
250,000 Burlington Co. General Improvement GO, 8.40%, due 10/1/96 3.70 254,795
50,000 Middlesex Co. Utils. Auth. Sewer Rev., Prerefunded @ 102,
7.50%, due 8/15/96 (Note E) 3.75 51,525
4,300,000 Wildwood GO Bond Anticipation Notes, 4.20%, due 9/20/96 3.65 4,308,957
----------
4,615,277
----------
</TABLE>
- --------------------------------------------------------------------------------
1996 Semiannual Report - April 30, 1996 (Unaudited) 21
<PAGE>
WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK -- .9%
50,000 Metropolitan Transp. Auth. Rev., Ser. G, Prerefunded @ 102,
8.00%, due 7/1/96 (Note E) 3.70 51,347
100,000 New York City Rev., Ser. B, Prerefunded @ 102, 7.38%,
due 8/15/96 (Note E) 3.90 102,955
100,000 New York City Rev., Ser. D, Prerefunded @ 102, 8.13%,
due 8/1/96 (Note E) 3.75 103,052
85,000 New York City Rev., Ser. D, Prerefunded @ 102, 8.50%,
due 8/1/96 (Note E) 3.75 87,673
175,000 New York City Rev., Ser. D, Prerefunded @ 102, 8.50%,
due 8/1/96 (Note E) 3.75 180,503
150,000 New York Dorm. Auth. Rev. (NY Univ.), Prerefunded @ 102, 6.63%,
due 7/1/96 (Note E) 3.50 153,754
1,000,000 New York HFA Rev., Ser. A, 5.60%, due 5/1/96 (Note D) 3.50 1,000,000
100,000 New York Med. Care Fac. Hosp. & Nursing Home Rev., 4.50%,
due 8/15/96 (Note D) 3.85 100,177
165,000 Wallkill GO, Ser. B, 6.63%, due 9/15/96 (Note D) 3.50 166,885
----------
1,946,346
----------
NORTH CAROLINA -- .3%
700,000 North Carolina Muni. Power Agency Rev. (Catawba Proj.), 3.45%,
due 6/18/96 (Note D) 3.45 700,000
----------
OHIO -- 3.5%
100,000 Ohio GO, 5.10%, due 8/1/96 3.50 100,391
100,000 Ohio GO, Prerefunded @ 102, 6.85%, due 9/1/96 (Note E) 3.85 102,952
305,000 Ohio Air Quality, Ser. A (Ohio Edison Proj.), 4.25%,
due 8/1/96 (Note D) 4.25 305,163
2,000,000 Toledo-Lucas Co. Port Auth. Rev. (CSX Transp. Inc.), 3.30%,
due 6/4/96 (Note D) 3.30 2,000,000
5,000,000 Twinsburg Local School Dist. GO Bond Anticipation Notes,
4.50%, due 6/6/96 3.80 5,003,406
----------
7,511,912
----------
OREGON -- .7%
355,000 Columbia River Rev. (Peoples Gas & Elec.), Prerefunded @ 100,
6.70%, due 5/1/96 (Note E) 3.40 355,000
225,000 Columbia River Rev. (Peoples Gas & Elec.), Prerefunded @ 100,
6.95%, due 5/1/96 (Note E) 3.40 225,000
850,000 Columbia River Rev. (Peoples Gas & Elec.), Prerefunded @ 100,
7.10%, due 5/1/96 (Note E) 3.55 850,000
----------
1,430,000
----------
PENNSYLVANIA -- 6.4%
2,700,000 Carbon Co. IDA, Ser. 90B (Panther Creek Proj.), 3.35%,
due 5/23/96 (Note D) 3.35 2,700,000
1,545,000 Carbon Co. IDA, Ser. 91C (Panther Creek Proj.), 3.35%,
due 5/23/96 (Note D) 3.35 1,545,000
6,600,000 Pennsylvania Tax Anticipation Notes, 4.50%, due 6/28/96 3.25 6,612,558
200,000 Venango IDA , Ser. 82A VRDN (Pennzoil Proj.), 4.80% (Notes B,D) 4.80 200,000
2,750,000 Venango IDA, Ser. 90A (Scrubgrass Proj.), 3.35%, due 5/21/96
(Note D) 3.35 2,750,000
----------
13,807,558
----------
</TABLE>
- --------------------------------------------------------------------------------
22
<PAGE>
WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SOUTH CAROLINA -- 2.6%
5,500,000 South Carolina Public Service Auth. Rev., 3.20%, due 5/29/96
(Note D) 3.20 5,500,000
----------
SOUTH DAKOTA -- 0%
100,000 South Dakota Bldg. Auth. Rev., 5.85%, due 9/1/96 (Note D) 3.60 100,739
----------
TENNESSEE -- 2.4%
1,700,000 Memphis Rev. (Shelby Co., Airport Auth.), 3.50%, due 6/18/96
(Note D) 3.50 1,700,000
3,500,000 Metro Gov't of Nashville & Davidson Ctys., Ser. 92
(Tennessee Hlth. & Educ. Board), 3.25%, due 5/16/96 (Note D) 3.25 3,500,000
----------
5,200,000
----------
TEXAS -- 10.8%
3,100,000 Austin, Ser. A (Travis & Williamson Ctys.), 3.20%, due 6/14/96
(Note D) 3.20 3,100,000
5,670,000 Brazos River Auth., Ser. 94A (Texas Util.), 3.45%, due 5/15/96
(Note D) 3.45 5,670,000
100,000 Houston, Water & Sewer Rev., Ser. A, Prerefunded @ 102, 7.00%,
due 12/1/96 (Note E) 3.75 103,810
1,600,000 San Antonio Water Sys., Ser. 95, 3.25%, due 6/13/96 (Note D) 3.25 1,600,000
660,000 Texas Dept. of Hsg. & Comm. Affairs SFM Rev. Ref., Ser. A,
3.65%, due 5/30/96 (Note D) 3.65 659,426
500,000 Texas Public Fin. Auth. Rev., Ser. A, 4.70%, due 10/1/96 3.50 502,453
6,070,000 Texas Tax and Rev. Anticipation Notes, Ser. A, 4.75%, due 8/30/96 3.25 6,098,440
2,100,000 Tyler Hlth. Fac. Dev. Corp., Ser. 93C (East Texas Med. Ctr.
Regional Healthcare), 3.45%, due 6/11/96 (Note D) 3.45 2,100,000
3,409,000 Univ. of Texas Board of Regents, Ser. A, 3.20%, due 6/13/96 3.20 3,409,000
----------
23,243,129
----------
UTAH -- 2.2%
1,470,000 Intermountain Power Agency, Ser. C, Prerefunded @ 100, 6.00%,
due 5/28/96 (Note E) 3.65 1,472,424
1,265,000 Intermountain Power Agency, Ser. H, Prerefunded @ 100, 6.00%,
due 5/28/96 (Note E) 3.65 1,267,153
1,880,000 Intermountain Power Agency, Ser. I, Prerefunded @ 100, 6.00%,
due 5/28/96 (Note E) 3.65 1,883,095
75,000 Intermountain Power Agency, Ser. 85C, Prerefunded @ 100, 6.00%,
due 5/28/96 (Note E) 3.65 75,120
----------
4,697,792
----------
VERMONT -- 2.6%
5,500,000 Vermont GO Bond Anticipation Notes, Ser. G, 3.30%, due 6/12/96
(Note D) 3.30 5,500,000
----------
VIRGINIA -- .3%
350,000 Fairfax Co. GO, Ser. B, Prerefunded @ 100.50, 6.40%, due 11/1/96
(Note E) 3.60 356,489
100,000 Virginia Beach GO, 6.60%, due 5/1/96 3.50 100,000
100,000 Virginia Pub. Facs. GO, Ser. A, 4.50%, due 6/1/96 3.95 100,073
----------
556,562
----------
</TABLE>
- --------------------------------------------------------------------------------
1996 Semiannual Report - April 30, 1996 (Unaudited) 23
<PAGE>
WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
- --------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO o SCHEDULE OF INVESTMENTS
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL ANNUALIZED
AMOUNT YIELD (%) VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WASHINGTON -- .1%
125,000 Washington Motor Vehicle Fuel Tax Rev., Prerefunded @ 100,
10.00%, due 9/1/96 (Note E) 3.90 127,483
------------
WEST VIRGINIA -- 2.2%
150,000 West Virginia Hsg. Dev. Rev., 5.75%, due 7/1/96 (Note D) 4.00 150,418
4,500,000 West Virginia Pub. Energy Rev. (Morgantown Assoc. Proj.), 3.60%,
due 6/10/96 (Note D) 3.60 4,500,000
------------
4,650,418
------------
WISCONSIN -- .1%
250,000 Wisconsin, GO, Ser. A, 6.50%, due 5/1/96 3.45 250,000
------------
WYOMING -- .4%
800,000 Sweetwater Co. Rev., Ser. 88A (Pacificorp Proj.), 3.30%,
due 6/4/96 (Note D) 3.30 800,000
------------
TOTAL MUNICIPAL OBLIGATIONS -- 99.4% 214,104,223
OTHER ASSETS AND LIABILITIES, NET -- .6% 1,206,307
------------
NET ASSETS -- 100.0% $215,310,530
============
</TABLE>
Please see accompanying notes to the schedules
of investments and financial statements.
- --------------------------------------------------------------------------------
24
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
NOTES TO
SCHEDULES OF INVESTMENTS
April 30, 1996 (Unaudited)
(A) Rule 144A securities are exempt from registration and are
restricted as to resale to qualified institutional buyers
under the Securities Act of 1933. Total value of these
securities in the Money Market Portfolio is $109,568,258,
which represents 9.11% of net assets.
(B) Variable rate securities. The rates shown are the current
rates on April 30, 1996. Securities in the Municipal
Portfolio shown without a maturity date are payable within
5 business days.
(C) These securities are deemed illiquid as to resale. Total
value of these securities in the Money Market Portfolio is
$20,000,000, which represents 1.66% of net assets.
(D) Securities backed by credit support agreements from banks
or insurance institutions.
(E) Bonds which are prerefunded are collateralized by U.S.
Government Securities which are held in escrow and are
used to pay principal and interest on the municipal issue
and to retire the bonds in full at the earliest refunding
date.
-----------------------------------------
DESCRIPTION OF ABBREVIATIONS
CDA Commercial Development Authority
GO General Obligation
HFA Housing Finance Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue Bond
MFH Multi-Family Housing
PCR Pollution Control Revenue Bond
SFM Single Family Mortgage
VRDN Variable Rate Demand Note
-----------------------------------------
- --------------------------------------------------------------------------------
1996 Semiannual Report - April 30, 1996 (Unaudited) 25
<PAGE>
- --------------------------------------------------------------------------------
WATERHOUSE INVESTORS CASH MANAGEMENT FUND, INC.
BOARD OF DIRECTORS AND EXECUTIVE OFFICERS
DIRECTORS
George F. Staudter
Chairman
Richard W. Dalrymple
Director
Anthony J. Pace
Director
Theodore Rosen
Director
Lawrence J. Toal
Director
EXECUTIVE OFFICERS
John E. Pelletier*
President
Eric B. Fischman*
Vice President and Secretary
Richard W. Ingram*
Vice President, Treasurer
and Chief Financial Officer
WATERHOUSE ASSET MANAGEMENT, INC.
BOARD OF DIRECTORS AND EXECUTIVE OFFICERS
DIRECTORS
Kenneth C. Ebbitt
Chairman and
Chief Executive Officer
Dennis C. Borecki
President and
Chief Operating Officer
Richard H. Neiman
Executive Vice President
General Counsel and Secretary
Waterhouse Investor Services, Inc.
Frank J. Petrilli
President and
Chief Operating Officer
Waterhouse Investor Services, Inc.
Lawrence M. Waterhouse, Jr.
Chairman and
Chief Executive Officer
Waterhouse Investor Services, Inc.
SENIOR OFFICERS
Kenneth I. Coco
Executive Vice President
Administration
Waterhouse Investor Services, Inc.
David A. Hartman
Senior Vice President
Chief Investment Officer
Christine Waterhouse
Senior Vice President
Mutual Fund Operations
*Affiliated person of the Distributor
------------------------------------------------------------------------
This Report has been prepared for shareholders and may be distributed to
others only if preceded or accompanied by a current prospectus.
------------------------------------------------------------------------
- --------------------------------------------------------------------------------
26
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENT MANAGER AND ADMINISTRATOR
Waterhouse Asset Management, Inc.
50 Main Street
White Plains, NY 10606
SHAREHOLDER SERVICING
Waterhouse Securities, Inc.
100 Wall Street
New York, NY 10005
Customer Service Department (800) 934-4410
TRANSFER AGENT
Waterhouse National Bank
One North Lexington Avenue
White Plains, NY 10601
CUSTODIAN
Bank of New York
90 Washington Street
New York, NY 10286
DISTRIBUTOR
Funds Distributor, Inc.
One Exchange Place
Boston, MA 02109
AUDITORS
Ernst & Young, LLP
787 Seventh Avenue
New York, NY 10019
LEGAL COUNSEL
Shereff, Friedman, Hoffman and Goodman LLP
919 Third Avenue
New York, NY 10022
- --------------------------------------------------------------------------------
1996 Semiannual Report - April 30, 1996 (Unaudited) 27
