N-30D 1 0001.txt SEMIANNUAL REPORT - INVESTORS MUNICIPAL CASH FUND 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. 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 Portfolio of Investments at September 30, 2000 (Unaudited)
Principal Amount Value --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- Tax-Exempt New York Money Market Fund --------------------------------------------------------------------------------------------------------------------- Variable Rate Demand Securities* -- 59.4% --------------------------------------------------------------------------------------------------------------------- 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
The accompanying notes are an integral part of the financial statements. 2
Principal Amount Value --------------------------------------------------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 3
Principal Amount Value --------------------------------------------------------------------------------------------------------------------- Other Securities -- 40.6% --------------------------------------------------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------------------------------------------------
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 Portfolio of Investments at September 30, 2000 (Unaudited)
Principal Amount Value --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- Investors Pennsylvania Municipal Cash Fund --------------------------------------------------------------------------------------------------------------------- Variable Rate Demand Securities* -- 81.2% --------------------------------------------------------------------------------------------------------------------- Pennsylvania Obligations --------------------------------------------------------------------------------------------------------------------- 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
The accompanying notes are an integral part of the financial statements. 5
Principal Amount Value --------------------------------------------------------------------------------------------------------------------- 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
The accompanying notes are an integral part of the financial statements. 6
Principal Amount Value --------------------------------------------------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------------------------------------------------
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 Portfolio of Investments at September 30, 2000 (Unaudited)
Principal Amount Value --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- Investors Florida Municipal Cash Fund --------------------------------------------------------------------------------------------------------------------- Variable Rate Demand Securities* -- 73.5% --------------------------------------------------------------------------------------------------------------------- Florida Obligations --------------------------------------------------------------------------------------------------------------------- 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
The accompanying notes are an integral part of the financial statements. 8
Principal Amount Value --------------------------------------------------------------------------------------------------------------------- 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
The accompanying notes are an integral part of the financial statements. 9
Principal Amount Value --------------------------------------------------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------------------------------------------------
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 Portfolio of Investments at September 30, 2000 (Unaudited)
Principal Amount Value --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- Investors New Jersey Municipal Cash Fund --------------------------------------------------------------------------------------------------------------------- Variable Rate Demand Securities* -- 82.2% --------------------------------------------------------------------------------------------------------------------- New Jersey Obligations --------------------------------------------------------------------------------------------------------------------- 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
The accompanying notes are an integral part of the financial statements. 11
Principal Amount Value --------------------------------------------------------------------------------------------------------------------- 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
The accompanying notes are an integral part of the financial statements. 12
Principal Amount Value --------------------------------------------------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------------------------------------------------
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 Portfolio of Investments at September 30, 2000 (Unaudited) 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 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 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 ------------------------------------------------------------------------------------------------------------------------
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 Financial Statements ------------------------------------------------------------------------------- Statement of Assets and Liabilities ------------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 17 -------------------------------------------------------------------------------- Statement of Operations ------------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 18 -------------------------------------------------------------------------------- Statements of Changes in Net Assets -------------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 19 -------------------------------------------------------------------------------- Statements of Changes in Net Assets -------------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 20 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 -------------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- Investors Pennsylvania Municipal Cash Fund -------------------------------------------------------------------------------- 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* ---------------------------------------------------------------------------------------------------------------------
(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 -------------------------------------------------------------------------------- Investors Florida Municipal Cash Fund -------------------------------------------------------------------------------- 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* ---------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- Investors New Jersey Municipal Cash Fund -------------------------------------------------------------------------------- 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* ---------------------------------------------------------------------------------------------------------------------
(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 -------------------------------------------------------------------------------- Investors Michigan Municipal Cash Fund -------------------------------------------------------------------------------- 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* ---------------------------------------------------------------------------------------------------------------------
(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 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 of average daily net assets in excess of $3 billion. For the six months ended September 30, 2000, the Funds incurred the following management fees: Fund Management fee Effective imposed ($) 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 ---------------------------------------------------------------------------------------------------------------------
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: Fund Distribution Distribution fee waived Unpaid at fee by Scudder September 30, imposed ($) Kemper ($) 2000 ($) --------------------------------------------------------------------------------------------------------------------- Tax-Exempt New York Money Market Fund 448,511 177,501 89,517 --------------------------------------------------------------------------------------------------------------------- Investors Pennsylvania Municipal Cash Fund 57,094 -- 14,321 --------------------------------------------------------------------------------------------------------------------- Investors Florida Municipal Cash Fund 94,335 4,954 -- --------------------------------------------------------------------------------------------------------------------- Investors New Jersey Municipal Cash Fund 115,303 24,851 59,951 --------------------------------------------------------------------------------------------------------------------- Investors Michigan Municipal Cash Fund 39,464 -- 7,537 ---------------------------------------------------------------------------------------------------------------------
KDI has related service agreements with various firms to provide cash management and other services for Fund shareholders. KDI pays these firms based on the average daily net assets of those accounts they maintain and service at an annual rate of 0.50% for each Fund, except the Investors Michigan Municipal Cash Fund, for which it pays firms at an annual rate of 0.35%. Shareholder Services Agreement. Pursuant to a services agreement with the Trust's transfer agent, Kemper Service Company ("KSvC") is the 25 shareholder service agent of the Trust. For the six months ended September 30, 2000, KSvC received shareholder services fees as follows: Fund Shareholder Services fee waived Unpaid at Fee by Scudder September 30, imposed ($) 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 ---------------------------------------------------------------------------------------------------------------------
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 $19,194 to independent trustees. 3. Expense Off-Set Arrangements Each Fund has entered into an arrangement with its custodian and transfer agent whereby credits realized as a result of uninvested cash balances were used to reduce a portion of each Fund's expenses. For the six months ended September 30, 2000, each Fund's custodian and transfer agent fees were reduced as follows: Fund Custodian Transfer fee agent fee reduction ($) 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 ---------------------------------------------------------------------------------------------------------------------
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 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