N-30D 1 ar-imc.txt ANNUAL REPORT - INVESTORS MUNICIPAL CASH FUND A N N U A L R E P O R T -------------------------------------------------------------------------------- Investors Municipal Cash Fund March 31, 2001 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 Scudder 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 Investors Municipal Cash Fund. To provide you with an update of holdings and financial highlights, on the following pages you'll find the fund's annual report for the year ended March 31, 2001. The fund series includes: o Tax-Exempt New York Money Market Fund o Investors Pennsylvania Municipal Cash Fund o Investors Florida Municipal Cash Fund o Investors New Jersey Municipal Cash Fund o Investors Michigan Municipal Cash Fund Briefly, for the past year ended March 31, 2001 the fund's portfolios registered favorable performance and achieved their stated objectives of providing maximum current income while maintaining stability of principal. Economic Review and Outlook With growing evidence of a worldwide economic slowdown and the poor performance of the United States equity markets, it is difficult not to be on the recession bandwagon. However, if traditional measures are used, history will probably only record a growth slowdown. In terms of financial developments, the Federal Reserve (Fed) eased rates in March by 50 basis points for the third time this year, and retained a bias for lower rates. Meanwhile, despite overall impressions of economic weakness, labor markets and housing have performed decently while consumer sentiment has improved. In this context the yield curve suggests, at most, 50 to 75 basis points of additional ease for this cycle. Market sentiment, including ours, assumes a more favorable economic climate during the latter stages of the year. As in recent months we have been attempting to walk a fine line between lengthening versus relinquishing the higher returns for shorter maturities. At times the yield curve has Portfolio Performance As of March 31, 2001 -------------------------------------------------------------------------------- 7-Day Equivalent Current Taxable Yield Yield -------------------------------------------------------------------------------- Tax-Exempt New York Money Market Fund 2.40% 4.44% -------------------------------------------------------------------------------- Investors Pennsylvania Municipal Cash Fund 2.46% 4.27% -------------------------------------------------------------------------------- Investors Florida Municipal Cash Fund 2.56% 4.23% -------------------------------------------------------------------------------- Investors New Jersey Municipal Cash Fund 2.25% 4.17% -------------------------------------------------------------------------------- Investors Michigan Municipal Cash Fund 2.75% 4.90% -------------------------------------------------------------------------------- made this easy because of its excessive hope of lower rates. At present, the short-term market offers reasonable value for longer maturities, based on our expectations, and we are selectively lengthening. Spring is now officially here, but the end of the economic slowdown remains elusive. The performance of our equity market remains a major concern because of its potential negative impact on both consumer and business spending and confidence. However, we remain optimistic because of the Fed's aggressive rate cutting actions coupled with prospects for more, and the consumer's apparent steadfastness. Congress may help in this regard as there is more talk of front-loading tax cuts. However, until economic prospects measurably brighten, we favor lengthening as interest rates are set to decline. Thank you again for your investment. We look forward to serving your investment needs for years to come. /s/ Frank Rachwalski Frank Rachwalski Vice President and Lead Portfolio Manager April 5, 2001 Frank Rachwalski is a Managing Director of Zurich Scudder Investments, Inc., and is Vice President and Lead Portfolio Manager of all Zurich Scudder Money Funds. Mr. Rachwalski holds B.B.A. and M.B.A. degrees from Loyola University. Notes Yields are historical, may fluctuate, and do not guarantee future performance. The Portfolio's net yields are the sum of the daily dividend rates for the period. 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 48.45%. 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 42.4%, 45.97% and 43.6% respectively. The Florida Fund equivalent taxable yield is based upon the fund's yield and 38.6% Federal income tax rate. Income may be subject to local taxes and for some investors, the alternative minimum tax. Like all money market funds, an investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve your investment at $1.00 per share, it is possible to lose money. The views expressed in this report reflect those of the portfolio manager only through the end of the period stated above. The manager's views are subject to change at any time, based on market and other conditions. 1 Portfolio of Investments at March 31, 2001
Principal Amount Value --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- Tax-Exempt New York Money Market Fund --------------------------------------------------------------------------------------------------------------------- Variable Rate Demand Securities*-- 63.2% --------------------------------------------------------------------------------------------------------------------- New York Obligations --------------------------------------------------------------------------------------------------------------------- New York Dormitory Authority, Cornell University, 3.25%-3.85% $ 8,100,000 $ 8,100,000 --------------------------------------------------------------------------------------------------------------------- New York Dormitory Authority, Glen Eddy Inc., 3.31% 7,500,000 7,500,000 --------------------------------------------------------------------------------------------------------------------- New York Dormitory Authority, Memorial Sloan, 3.70% 7,590,000 7,590,000 --------------------------------------------------------------------------------------------------------------------- New York Energy Research and Development Authority, Electric & Gas, 3.80% 8,385,000 8,385,000 --------------------------------------------------------------------------------------------------------------------- New York Energy Research and Development Authority, Niagara Mohawk Power Corp. Project, 3.60%-3.85% 10,400,000 10,400,000 --------------------------------------------------------------------------------------------------------------------- New York Energy Research and Development Authority, Orange and Rockland Project, 3.15% 1,200,000 1,200,000 --------------------------------------------------------------------------------------------------------------------- New York Housing Finance Agency, East 84th Street, 3.40% 5,000,000 5,000,000 --------------------------------------------------------------------------------------------------------------------- New York Housing Finance Agency, Hospital for Special Surgery, 3.25% 2,620,000 2,620,000 --------------------------------------------------------------------------------------------------------------------- New York Housing Finance Agency, Normandie Court I Project, 3.15% 4,500,000 4,500,000 --------------------------------------------------------------------------------------------------------------------- New York Housing Finance Agency, Related East 39 Street, 3.35% 7,000,000 7,000,000 --------------------------------------------------------------------------------------------------------------------- Albany Industrial Development Agency, Davies Office Refurbishing, 3.35% 1,595,000 1,595,000 --------------------------------------------------------------------------------------------------------------------- Babylon Industrial Development Agency, J. D'Addario Realty Co. Project, 3.35% 1,700,000 1,700,000 --------------------------------------------------------------------------------------------------------------------- Babylon Industrial Development Agency, OFS Equity Babylon Project, 3.85% 3,900,000 3,900,000 The accompanying notes are an integral part of the financial statements. 2 Principal Amount Value --------------------------------------------------------------------------------------------------------------------- Hempstead Industrial Development Agency, Nassau Energy, 3.35% $ 1,000,000 $ 1,000,000 --------------------------------------------------------------------------------------------------------------------- New York City General Obligation, 3.30%-3.70% 15,800,000 15,800,000 --------------------------------------------------------------------------------------------------------------------- New York City Water Finance Authority, Water & Sewer System, 3.75% 5,600,000 5,600,000 --------------------------------------------------------------------------------------------------------------------- Niagara County Industrial Development Agency, Solid Waste Disposal, 3.40% 7,000,000 7,000,000 --------------------------------------------------------------------------------------------------------------------- Onondaga Industrial Development Agency, Southern Container Corp., 3.35% 1,200,000 1,200,000 --------------------------------------------------------------------------------------------------------------------- Rochester General Obligation, 4.75% 5,000,000 5,012,227 --------------------------------------------------------------------------------------------------------------------- Schenectady Industrial Development Agency, Scotia Industrial Park Project, 3.25% 1,570,000 1,570,000 --------------------------------------------------------------------------------------------------------------------- Schoharie County Industrial Development Agency, Bassett Hospital Project, 3.60% 2,400,000 2,400,000 --------------------------------------------------------------------------------------------------------------------- St. Lawrence County Industrial Development Agency, Reynolds Metals Company Project, 3.30% 1,000,000 1,000,000 --------------------------------------------------------------------------------------------------------------------- Total Variable Rate Demand Securities (Cost $110,072,227) 110,072,227 --------------------------------------------------------------------------------------------------------------------- Other Securities-- 36.8% --------------------------------------------------------------------------------------------------------------------- Long Island Power Authority, 2.90%-3.30%, 5/8/2001-5/14/2001 15,900,000 15,900,000 --------------------------------------------------------------------------------------------------------------------- New York Dormitory Authority, Columbia University, 3.00%-3.30%, 6/13/2001-6/14/2001 8,000,000 8,000,000 --------------------------------------------------------------------------------------------------------------------- New York General Obligation, 2.85%-3.30%, 4/4/2001-5/4/2001 7,500,000 7,500,000 The accompanying notes are an integral part of the financial statements. 3 Principal Amount Value --------------------------------------------------------------------------------------------------------------------- New York Metropolitan Transportation Authority, 3.30%-3.35%, 4/9/2001-4/11/2001 $ 15,000,000 $ 15,000,000 --------------------------------------------------------------------------------------------------------------------- New York Port Authority, 3.05%, 6/8/2001 2,400,000 2,400,000 --------------------------------------------------------------------------------------------------------------------- New York Power Authority, 2.95%, 5/7/2001 4,400,000 4,400,000 --------------------------------------------------------------------------------------------------------------------- New York City Municipal Water Finance Authority, 3.10%-3.35%, 4/5/2001-4/6/2001 11,000,000 11,000,000 --------------------------------------------------------------------------------------------------------------------- Total Other Securities (Cost $64,200,000) 64,200,000 --------------------------------------------------------------------------------------------------------------------- Total Investment Portfolio-- 100% (Cost $174,272,227) (a) $ 174,272,227 ---------------------------------------------------------------------------------------------------------------------
* Variable rate demand notes are securities whose interest rates are reset periodically at market levels. These securities are payable on demand within seven calendar days and normally incorporate an irrevocable letter of credit or line of credit from a major bank. These notes are carried, for purposes of calculating average weighted maturity, at the longer of the period remaining until the next rate change or to the extent of the demand period. These securities are shown at their current rate as of March 31, 2001. Interest rates represent annualized yield to date of maturity, except for variable rate securities described below. (a)Cost for federal income tax purposes was $174,272,227. The accompanying notes are an integral part of the financial statements. 4
Portfolio of Investments at March 31, 2001 Principal Amount Value --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- Investors Pennsylvania Municipal Cash Fund --------------------------------------------------------------------------------------------------------------------- Variable Rate Demand Securities*-- 86.8% --------------------------------------------------------------------------------------------------------------------- Pennsylvania Obligations --------------------------------------------------------------------------------------------------------------------- Pennsylvania State Higher Education Educational Facilities Authority Revenue, Series B, 3.45% $ 1,225,000 $ 1,225,000 --------------------------------------------------------------------------------------------------------------------- Allegheny County Industrial Development Authority, 3.60% 1,100,000 1,100,000 --------------------------------------------------------------------------------------------------------------------- Allentown Hospital Authority Revenue, 3.60% 100,000 100,000 --------------------------------------------------------------------------------------------------------------------- Cambria County Industrial Development Authority, 3.55% 1,025,000 1,025,000 --------------------------------------------------------------------------------------------------------------------- Dallastown Area School District General Obligation, 3.53% 925,000 925,000 --------------------------------------------------------------------------------------------------------------------- Dauphin County General Authority Revenue, 3.53% 880,000 880,000 --------------------------------------------------------------------------------------------------------------------- Delaware County Industrial Development Authority, 3.90% 200,000 200,000 --------------------------------------------------------------------------------------------------------------------- Delaware Valley Regional Financing Authority, 3.45% 700,000 700,000 --------------------------------------------------------------------------------------------------------------------- East Hempfield County Industrial Development Authority, 3.53% 2,000,000 2,000,000 --------------------------------------------------------------------------------------------------------------------- Emmaus General Authority Revenue, Series A, 3.53% 700,000 700,000 --------------------------------------------------------------------------------------------------------------------- Emmaus General Authority Revenue, Series B, 3.50% 900,000 900,000 --------------------------------------------------------------------------------------------------------------------- Erie County Hospital Authority Revenue, 3.60% 100,000 100,000 --------------------------------------------------------------------------------------------------------------------- Gettysburg Industrial Development Authority, Series A, 3.45% 700,000 700,000 --------------------------------------------------------------------------------------------------------------------- Gettysburg Industrial Development Authority, Series B, 3.50% 100,000 100,000 --------------------------------------------------------------------------------------------------------------------- Indiana County Industrial Development Authority, 3.45% 900,000 900,000 --------------------------------------------------------------------------------------------------------------------- Lancaster County General Obligation, 3.53% 300,000 300,000 The accompanying notes are an integral part of the financial statements. 5 Principal Amount Value --------------------------------------------------------------------------------------------------------------------- Lancaster County Hospital Authority Revenue, 3.60% $ 1,800,000 $ 1,800,000 --------------------------------------------------------------------------------------------------------------------- Lebanon County Health Center Revenue, 3.55% 585,000 585,000 --------------------------------------------------------------------------------------------------------------------- Lehigh County Industrial Development Authority, 3.50% 280,000 280,000 --------------------------------------------------------------------------------------------------------------------- Northumberland County Industrial Development Authority, 3.55% 1,240,000 1,240,000 --------------------------------------------------------------------------------------------------------------------- Philadelphia Hospital Authority Revenue, 3.90% 700,000 700,000 --------------------------------------------------------------------------------------------------------------------- Quakertown Hospital Authority Revenue, 3.55% 900,000 900,000 --------------------------------------------------------------------------------------------------------------------- Schuylkill County Industrial Development Authority, 3.45% 500,000 500,000 --------------------------------------------------------------------------------------------------------------------- State Public School Building Authority Revenue, Series D, 3.53% 585,000 585,000 --------------------------------------------------------------------------------------------------------------------- Telford Industrial Development Authority, 3.75% 1,000,000 1,000,000 --------------------------------------------------------------------------------------------------------------------- Venango Industrial Development Authority, 3.95% 285,000 285,000 --------------------------------------------------------------------------------------------------------------------- Washington County Authority Lease Revenue, 3.50% 1,320,000 1,320,000 --------------------------------------------------------------------------------------------------------------------- Total Variable Rate Demand Securities (Cost $21,050,000) 21,050,000 --------------------------------------------------------------------------------------------------------------------- Other Securities -- 13.2% --------------------------------------------------------------------------------------------------------------------- Beaver County Duquesne Industrial Development Authority, 3.35%, 4/3/2001 1,000,000 1,000,000 --------------------------------------------------------------------------------------------------------------------- Delaware County Industrial Development Authority, 3.15%, 6/11/2001 200,000 200,000 --------------------------------------------------------------------------------------------------------------------- Montgomery County Industrial Development Authority, 3.15%, 8/13/2001 2,000,000 2,000,000 --------------------------------------------------------------------------------------------------------------------- Total Other Securities (Cost $3,200,000) 3,200,000 --------------------------------------------------------------------------------------------------------------------- Total Investment Portfolio -- 100% (Cost $24,250,000) (a) $ 24,250,000 ---------------------------------------------------------------------------------------------------------------------
* Variable rate demand notes are securities whose interest rates are reset periodically at market levels. These securities are payable on demand within seven calendar days and normally incorporate an irrevocable letter of credit or line of credit from a major bank. These notes are carried, for purposes of calculating average weighted maturity, at the longer of the period remaining until the next rate change or to the extent of the demand period. These securities are shown at their current rate as of March 31, 2001. Interest rates represent annualized yield to date of maturity, except for variable rate securities described below. (a) Cost for federal income tax purposes was $24,250,000. The accompanying notes are an integral part of the financial statements. 6 Portfolio of Investments at March 31, 2001
Principal Amount Value --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- Investors Florida Municipal Cash Fund --------------------------------------------------------------------------------------------------------------------- Variable Rate Demand Securities*-- 66.9% --------------------------------------------------------------------------------------------------------------------- Florida Obligations --------------------------------------------------------------------------------------------------------------------- Alachua County Health Facilities Authority, 3.45% $ 2,400,000 $ 2,400,000 --------------------------------------------------------------------------------------------------------------------- Alachua County Industrial Development Authority, Series A, 3.55% 280,000 280,000 --------------------------------------------------------------------------------------------------------------------- Alachua County Industrial Development Authority, Series B, 3.65% 250,000 250,000 --------------------------------------------------------------------------------------------------------------------- Broward County Industrial Development Authority, 3.75% 170,000 170,000 --------------------------------------------------------------------------------------------------------------------- Capital Projects Financing Authority, 3.50% 1,600,000 1,600,000 --------------------------------------------------------------------------------------------------------------------- Citrus Park Community Development Authority, 3.45% 1,110,000 1,110,000 --------------------------------------------------------------------------------------------------------------------- Dade County Aviation Facilities Authority, 3.45% 975,000 975,000 --------------------------------------------------------------------------------------------------------------------- Dade County Dolphins Stadium Project, 3.50% 1,030,000 1,030,000 --------------------------------------------------------------------------------------------------------------------- Dade County Spectrum Programs, Inc. Project, 3.60% 745,000 745,000 --------------------------------------------------------------------------------------------------------------------- Florida Housing Finance Agency Hampton Lakes, 3.55% 2,000,000 2,000,000 --------------------------------------------------------------------------------------------------------------------- Gulf Breeze Revenue, 3.50% 1,740,000 1,740,000 --------------------------------------------------------------------------------------------------------------------- Hillsborough County Industrial Development Authority, 3.60% 3,400,000 3,400,000 --------------------------------------------------------------------------------------------------------------------- Hillsborough County Industrial Development Authority Pollution Control Revenue, 3.70%-3.85% 800,000 800,000 --------------------------------------------------------------------------------------------------------------------- Indian River County Hospital Revenue, 3.55% 3,000,000 3,000,000 --------------------------------------------------------------------------------------------------------------------- Jacksonville Health Facilities Authority, 3.60% 500,000 500,000 --------------------------------------------------------------------------------------------------------------------- Jacksonville Industrial Development Authority, 3.50% 3,000,000 3,000,000 The accompanying notes are an integral part of the financial statements. 7 Principal Amount Value --------------------------------------------------------------------------------------------------------------------- Orange County Health Facilities Authority Revenue, 3.55%-3.60% $ 3,725,000 $ 3,725,000 --------------------------------------------------------------------------------------------------------------------- Orange County Housing Finance Authority Revenue, 3.50% 1,750,000 1,750,000 --------------------------------------------------------------------------------------------------------------------- Putnam County Development Authority Pollution Control Revenue, 3.50% 5,070,000 5,070,000 --------------------------------------------------------------------------------------------------------------------- Sunshine State Government Finance Authority, 3.45% 2,500,000 2,500,000 --------------------------------------------------------------------------------------------------------------------- Other Obligations --------------------------------------------------------------------------------------------------------------------- Alaska Valdez Alaska Marine Revenue, 3.70% 500,000 500,000 --------------------------------------------------------------------------------------------------------------------- Pennsylvania Philadelphia, Hospital and Higher Education Facilities Authority Hospital Revenue, 3.90% 400,000 400,000 --------------------------------------------------------------------------------------------------------------------- Total Variable Rate Demand Securities (Cost $36,945,000) 36,945,000 --------------------------------------------------------------------------------------------------------------------- Other Securities -- 33.1% --------------------------------------------------------------------------------------------------------------------- Dade County Aviation Facilities Authority, 3.25%-4.20%, 4/9/2001-7/16/2001 5,136,000 5,136,000 --------------------------------------------------------------------------------------------------------------------- Florida Municipal Power Agency, 3.00%, 5/14/2001 1,000,000 1,000,000 --------------------------------------------------------------------------------------------------------------------- Gainesville Utilities Systems Revenue, 3.35%-3.40%, 4/5/2001-4/11/2001 2,600,000 2,600,000 --------------------------------------------------------------------------------------------------------------------- Jacksonville Electric Revenue, 3.20%-4.20%, 4/10/2001-9/11/2001 3,526,000 3,526,000 --------------------------------------------------------------------------------------------------------------------- Kissimmee Utilities Authority, 3.10%, 5/21/2001 1,500,000 1,500,000 --------------------------------------------------------------------------------------------------------------------- Orange County School District Revenue, 5.00%, 9/17/2001 1,000,000 1,003,261 --------------------------------------------------------------------------------------------------------------------- Orlando Capital Improvement Revenue, 4.40%, 4/11/2001 1,400,000 1,400,000 --------------------------------------------------------------------------------------------------------------------- Pinellas County Education Facilities Authority, 3.45%, 4/25/2001 1,400,000 1,400,000 --------------------------------------------------------------------------------------------------------------------- Sarasota County Hospital Revenue, 3.40%, 4/12/2001 700,000 700,000 --------------------------------------------------------------------------------------------------------------------- Total Other Securities (Cost $18,265,261) 18,265,261 --------------------------------------------------------------------------------------------------------------------- Total Investment Portfolio -- 100% (Cost $55,210,261) (a) $ 55,210,261 ---------------------------------------------------------------------------------------------------------------------
* Variable rate demand notes are securities whose interest rates are reset periodically at market levels. These securities are payable on demand within seven calendar days and normally incorporate an irrevocable letter of credit or line of credit from a major bank. These notes are carried, for purposes of calculating average weighted maturity, at the longer of the period remaining until the next rate change or to the extent of the demand period. These securities are shown at their current rate as of March 31, 2001. Interest rates represent annualized yield to date of maturity, except for variable rate securities described below. (a) Cost for federal income tax purposes was $55,210,261. The accompanying notes are an integral part of the financial statements. 8 Portfolio of Investments at March 31, 2001
Principal Amount Value --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- Investors New Jersey Municipal Cash Fund --------------------------------------------------------------------------------------------------------------------- Variable Rate Demand Securities*-- 65.8% --------------------------------------------------------------------------------------------------------------------- New Jersey Obligations --------------------------------------------------------------------------------------------------------------------- New Jersey Economic Development Authority, AIRIS Newark Project, 3.50% $ 2,200,000 $ 2,200,000 --------------------------------------------------------------------------------------------------------------------- New Jersey Economic Development Authority, Blair Academy, School Revenue, 3.30% 1,000,000 1,000,000 --------------------------------------------------------------------------------------------------------------------- New Jersey Economic Development Authority, Dow Chemical Company, El Dorado Terminals Revenue, Series A, 3.60% 3,300,000 3,300,000 --------------------------------------------------------------------------------------------------------------------- New Jersey Economic Development Authority, Foreign Trade Zone Project, 3.60% 1,500,000 1,500,000 --------------------------------------------------------------------------------------------------------------------- New Jersey Economic Development Authority, 400 International Drive Partners, 3.55% 3,500,000 3,500,000 --------------------------------------------------------------------------------------------------------------------- New Jersey Economic Development Authority, Natural Gas Co. Project, 3.10% 1,200,000 1,200,000 --------------------------------------------------------------------------------------------------------------------- New Jersey Economic Development Authority, Public Service Electric and Gas Co., 3.10% 2,100,000 2,100,000 --------------------------------------------------------------------------------------------------------------------- New Jersey Economic Development Authority, Stolthaven Project, Series A, 3.60% 1,700,000 1,700,000 --------------------------------------------------------------------------------------------------------------------- New Jersey Economic Development Authority, Thermal Energy Facilities Revenue, 3.30% 2,100,000 2,100,000 --------------------------------------------------------------------------------------------------------------------- New Jersey Economic Development Authority, Water Facilities Revenue, Series A, 3.60% 900,000 900,000 --------------------------------------------------------------------------------------------------------------------- New Jersey Healthcare Facilities Financing Authority, Hospital Capital Asset Financing, Series B, 3.35% 1,500,000 1,500,000 --------------------------------------------------------------------------------------------------------------------- New Jersey Healthcare Facilities Financing Authority, Hospital Capital Asset Financing, Series D, 3.35% 1,600,000 1,600,000 --------------------------------------------------------------------------------------------------------------------- New Jersey Healthcare Facilities Financing Authority, Pascack Community Services, 3.15% 300,000 300,000 --------------------------------------------------------------------------------------------------------------------- New Jersey Sports and Exposition Authority, Series C, 3.50% 4,600,000 4,600,000 --------------------------------------------------------------------------------------------------------------------- New Jersey Turnpike Authority Revenue, Series D, 3.15% 4,600,000 4,600,000 --------------------------------------------------------------------------------------------------------------------- Essex County Improvement Authority Revenue, 2.90% 3,500,000 3,500,000 The accompanying notes are an integral part of the financial statements. 9 Principal Amount Value --------------------------------------------------------------------------------------------------------------------- Union County Pollution Control Revenue, 3.00% $ 900,000 $ 900,000 --------------------------------------------------------------------------------------------------------------------- Other Obligations --------------------------------------------------------------------------------------------------------------------- Delaware River & Bay Authority Revenue, Series B, 3.15% 1,000,000 1,000,000 --------------------------------------------------------------------------------------------------------------------- Michigan University of Michigan Hospital Revenue, 3.75% 300,000 300,000 --------------------------------------------------------------------------------------------------------------------- Montana Forsyth Pollution Control Revenue, 3.75% 650,000 650,000 --------------------------------------------------------------------------------------------------------------------- North Carolina Raleigh-Durham Airport Authority Special Facilities Revenue, 3.75% 900,000 900,000 --------------------------------------------------------------------------------------------------------------------- Ohio Air Quality Development Authority Revenue, 3.75% 1,000,000 1,000,000 --------------------------------------------------------------------------------------------------------------------- Pennsylvania Lehigh County General Purpose Authority Revenue, 3.85% 400,000 400,000 --------------------------------------------------------------------------------------------------------------------- Port Authority of New York and New Jersey, Versatile Structure Special Obligation Revenue, 3.70% 400,000 400,000 --------------------------------------------------------------------------------------------------------------------- Puerto Rico Commonwealth Highway and Transportation Authority, 3.40% 1,000,000 1,000,000 --------------------------------------------------------------------------------------------------------------------- Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, 3.35% 3,500,000 3,500,000 --------------------------------------------------------------------------------------------------------------------- Texas Grapevine Industrial Development Corp. Revenue, 3.75% 2,000,000 2,000,000 --------------------------------------------------------------------------------------------------------------------- Harris County Health Facilities Development Corp., 3.90% 2,730,000 2,730,000 --------------------------------------------------------------------------------------------------------------------- Total Variable Rate Demand Securities (Cost $50,380,000) 50,380,000 --------------------------------------------------------------------------------------------------------------------- Other Securities-- 34.2% --------------------------------------------------------------------------------------------------------------------- New Jersey Economic Development Authority, 3.15%, 6/8/2001 3,400,000 3,400,000 --------------------------------------------------------------------------------------------------------------------- New Jersey Educational Facilities, Princeton, 2.80%, 5/7/2001 2,500,000 2,500,000 --------------------------------------------------------------------------------------------------------------------- New Jersey Port Authority, 3.05%-3.25%, 6/8/2001-6/13/2001 5,325,000 5,325,000 --------------------------------------------------------------------------------------------------------------------- New Jersey Transit Authority, 3.15%-3.20%, 4/2/2001-4/9/2001 6,500,000 6,500,000 --------------------------------------------------------------------------------------------------------------------- Puerto Rico Commonwealth Government Development Bank, 3.00%-3.10%, 6/14/2001-9/17/2001 6,500,000 6,500,000 The accompanying notes are an integral part of the financial statements. 10 Principal Amount Value --------------------------------------------------------------------------------------------------------------------- Salem County Pollution Control Revenue, 3.00%, 6/12/2001 $ 2,000,000 $ 2,000,000 --------------------------------------------------------------------------------------------------------------------- Total Other Securities (Cost $26,225,000) 26,225,000 --------------------------------------------------------------------------------------------------------------------- Total Investment Portfolio-- 100% (Cost $76,605,000) (a) $ 76,605,000 ---------------------------------------------------------------------------------------------------------------------
* Variable rate demand notes are securities whose interest rates are reset periodically at market levels. These securities are payable on demand within seven calendar days and normally incorporate an irrevocable letter of credit or line of credit from a major bank. These notes are carried, for purposes of calculating average weighted maturity, at the longer of the period remaining until the next rate change or to the extent of the demand period. These securities are shown at their current rate as of March 31, 2001. Interest rates represent yield to date of maturity, except for variable rate securities described below. (a) Cost for federal income tax purposes was $76,605,000. The accompanying notes are an integral part of the financial statements. 11 Portfolio of Investments at March 31, 2001
Principal Amount Value --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- Investors Michigan Municipal Cash Fund --------------------------------------------------------------------------------------------------------------------- Variable Rate Demand Securities*-- 79.7% --------------------------------------------------------------------------------------------------------------------- Michigan Obligations --------------------------------------------------------------------------------------------------------------------- Michigan State Higher Education Authority, Student Loan, 3.50% $ 1,000,000 $ 1,000,000 --------------------------------------------------------------------------------------------------------------------- Michigan State Hospital Financing Authority, Covenant Retirement, 3.50% 430,000 430,000 --------------------------------------------------------------------------------------------------------------------- Michigan State Hospital Financing Authority, Equipment Loan Program, Series A, 3.40% 1,100,000 1,100,000 --------------------------------------------------------------------------------------------------------------------- Michigan State Hospital Financing Authority, Mt. Clemens General Hospital, 3.55% 800,000 800,000 --------------------------------------------------------------------------------------------------------------------- Michigan State Housing Development Authority, Laurel Valley, 3.60% 700,000 700,000 --------------------------------------------------------------------------------------------------------------------- Michigan State Housing Development Authority, Multi-Family Revenue, River Place Apartments, 3.55% 1,380,000 1,380,000 --------------------------------------------------------------------------------------------------------------------- Michigan State Job Development Authority, Gordon Food Service Project, 3.60% 1,100,000 1,100,000 --------------------------------------------------------------------------------------------------------------------- Michigan State Strategic Fund, Continental Aluminum Project, 3.65% 400,000 400,000 --------------------------------------------------------------------------------------------------------------------- Michigan State Strategic Fund, Creative Foam Corp. Project, 3.80% 400,000 400,000 --------------------------------------------------------------------------------------------------------------------- Michigan State Strategic Fund, General Motors Corp. Project, 3.65% 1,200,000 1,200,000 --------------------------------------------------------------------------------------------------------------------- Michigan State Strategic Fund, Hope Network, Inc. Project, Series A, 3.60% 1,020,000 1,020,000 --------------------------------------------------------------------------------------------------------------------- Michigan State Strategic Fund, Obligation Revenue, 3.70% 800,000 800,000 --------------------------------------------------------------------------------------------------------------------- Michigan State Strategic Fund, Ritz-Kraft Corp. Project, 3.50% 200,000 200,000 --------------------------------------------------------------------------------------------------------------------- Michigan State University Higher Education Authority, Series A-2, 3.45% 100,000 100,000 --------------------------------------------------------------------------------------------------------------------- Michigan State University, General Revenue, Series A, 3.40% 1,000,000 1,000,000 The accompanying notes are an integral part of the financial statements. 12 Principal Amount Value --------------------------------------------------------------------------------------------------------------------- University of Michigan, Hospital Revenue, 3.75% $ 800,000 $ 800,000 --------------------------------------------------------------------------------------------------------------------- Bruce Township Health Care Systems Revenue, 3.45% 1,100,000 1,100,000 --------------------------------------------------------------------------------------------------------------------- Delta Mead Economic Development Corp., 3.95% 1,500,000 1,500,000 --------------------------------------------------------------------------------------------------------------------- Detroit Sewage Revenue, Series A, 3.50% 1,100,000 1,100,000 --------------------------------------------------------------------------------------------------------------------- Farmington Hills Economic Development Authority, 3.70% 340,000 340,000 --------------------------------------------------------------------------------------------------------------------- Fremont Hospital Revenue, 3.5% 450,000 450,000 --------------------------------------------------------------------------------------------------------------------- Garden City Hospital Revenue, Series A, 3.55% 700,000 700,000 --------------------------------------------------------------------------------------------------------------------- Genesee County Economic Development Authority, 3.8% 300,000 300,000 --------------------------------------------------------------------------------------------------------------------- Grand Rapids Water Supply Revenue, 3.40% 1,100,000 1,100,000 --------------------------------------------------------------------------------------------------------------------- Green Lake Township Economic Development Corp., 3.5% 1,200,000 1,200,000 --------------------------------------------------------------------------------------------------------------------- Jackson County Economic Development Corp., 3.55% 500,000 500,000 --------------------------------------------------------------------------------------------------------------------- Oakland County Economic Development Corp., 3.65% 200,000 200,000 --------------------------------------------------------------------------------------------------------------------- Sterling Heights Economic Development Corp., 3.80% 700,000 700,000 --------------------------------------------------------------------------------------------------------------------- Wayne County Airport Revenue, 3.50% 1,060,000 1,060,000 --------------------------------------------------------------------------------------------------------------------- Other Obligations --------------------------------------------------------------------------------------------------------------------- Montana Forsyth County Pollution Control Revenue, 3.75% 500,000 500,000 --------------------------------------------------------------------------------------------------------------------- Total Variable Rate Demand Securities (Cost $23,180,000) 23,180,000 --------------------------------------------------------------------------------------------------------------------- The accompanying notes are an integral part of the financial statements. 13 Principal Amount Value --------------------------------------------------------------------------------------------------------------------- Other Securities-- 20.3% --------------------------------------------------------------------------------------------------------------------- Cornell Mead Economic Development Corp., 3.10%, 5/8/2001 $ 400,000 $ 400,000 --------------------------------------------------------------------------------------------------------------------- Delta Mead Economic Development Corp., 3.25%, 7/24/2001 1,000,000 1,000,000 --------------------------------------------------------------------------------------------------------------------- Michigan State Strategic Fund, 4.20%, 4/11/2001 1,500,000 1,500,000 --------------------------------------------------------------------------------------------------------------------- Michigan State Strategic Fund, 4.35%, 4/12/2001 1,000,000 1,000,000 --------------------------------------------------------------------------------------------------------------------- University of Michigan Board of Regents, 3.45%, 4/2/2001 2,000,000 2,000,000 --------------------------------------------------------------------------------------------------------------------- Total Other Securities (Cost $5,900,000) 5,900,000 --------------------------------------------------------------------------------------------------------------------- Total Investment Portfolio-- 100% (Cost $29,080,000) (a) $ 29,080,000 ---------------------------------------------------------------------------------------------------------------------
* Variable rate demand notes are securities whose interest rates are reset periodically at market levels. These securities are payable on demand within seven calendar days and normally incorporate an irrevocable letter of credit or line of credit from a major bank. These notes are carried, for purposes of calculating average weighted maturity, at the longer of the period remaining until the next rate change or to the extent of the demand period. These securities are shown at their current rate as of March 31, 2001. Interest rates represent annualized yield to date of maturity, except for variable rate securities described below. (a) Cost for federal income tax purposes was $29,080,000. The accompanying notes are an integral part of the financial statements. 14 Financial Statements -------------------------------------------------------------------------------- Statements of Assets and Liabilities --------------------------------------------------------------------------------
as of March 31, 2001 New York Pennsylvania Florida New Jersey Michigan --------------------------------------------------------------------------------------------------------------------- Assets --------------------------------------------------------------------------------------------------------------------- Investments in securities, at amortized cost $ 174,272,227 24,250,000 55,210,261 76,605,000 29,080,000 --------------------------------------------------------------------------------------------------------------------- Cash 789,386 152,262 -- 394,513 148,629 --------------------------------------------------------------------------------------------------------------------- Receivable for investments sold -- 15,000 2,000,053 -- -- --------------------------------------------------------------------------------------------------------------------- Interest receivable 572,559 61,841 208,053 209,038 131,032 --------------------------------------------------------------------------------------------------------------------- Receivable for Fund shares sold 1,278,879 264,908 1,518,786 1,030,319 323,417 --------------------------------------------------------------------------------------------------------------------- Due from Advisor -- 34,578 -- -- 32,495 --------------------------------------------------------------------------------------------------------------------- Total assets 176,913,051 24,778,589 58,937,153 78,238,870 29,715,573 --------------------------------------------------------------------------------------------------------------------- Liabilities --------------------------------------------------------------------------------------------------------------------- Due to custodian bank -- -- 106,439 -- -- --------------------------------------------------------------------------------------------------------------------- Notes payable -- -- 250,000 -- -- --------------------------------------------------------------------------------------------------------------------- Dividends payable 23,673 2,022 8,286 9,816 4,471 --------------------------------------------------------------------------------------------------------------------- Payable for Fund shares redeemed 1,279,873 235,934 1,513,217 1,053,564 335,989 --------------------------------------------------------------------------------------------------------------------- Accrued management fee 36,079 -- 10,776 21,511 -- --------------------------------------------------------------------------------------------------------------------- Accrued reorganization costs 65,922 14,742 21,929 20,606 20,035 --------------------------------------------------------------------------------------------------------------------- Accrued trustees' fees and expenses 11,817 4,767 5,543 5,926 5,275 --------------------------------------------------------------------------------------------------------------------- Other accrued expenses and payables 14,620 -- 38,805 81,450 -- --------------------------------------------------------------------------------------------------------------------- Total liabilities 1,431,984 257,465 1,954,995 1,192,873 365,770 --------------------------------------------------------------------------------------------------------------------- Net assets, at value $ 175,481,067 24,521,124 56,982,158 77,045,997 29,349,803 --------------------------------------------------------------------------------------------------------------------- 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) $ 175,481,067 24,521,124 56,982,158 77,045,997 29,349,803 ---------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 15 -------------------------------------------------------------------------------- Statements of Operations --------------------------------------------------------------------------------
Year ended March 31, 2001 New York Pennsylvania Florida New Jersey Michigan --------------------------------------------------------------------------------------------------------------------- Investment Income --------------------------------------------------------------------------------------------------------------------- Income: --------------------------------------------------------------------------------------------------------------------- Interest $ 8,500,131 961,478 1,829,870 2,446,455 1,097,108 --------------------------------------------------------------------------------------------------------------------- Expenses: --------------------------------------------------------------------------------------------------------------------- Management fee 469,185 52,440 100,021 143,386 59,295 --------------------------------------------------------------------------------------------------------------------- Services to shareholders 495,891 93,873 157,336 186,622 84,314 --------------------------------------------------------------------------------------------------------------------- Custodian fees 6,410 5,057 9,486 4,912 8,454 --------------------------------------------------------------------------------------------------------------------- Distribution services fees 1,066,333 119,183 227,320 325,880 94,332 --------------------------------------------------------------------------------------------------------------------- Auditing 66,122 4,642 13,461 13,905 5,362 --------------------------------------------------------------------------------------------------------------------- Legal 12,404 2,459 1,534 4,231 3,179 --------------------------------------------------------------------------------------------------------------------- Trustees' fees and expenses 21,227 9,072 6,164 6,976 9,737 --------------------------------------------------------------------------------------------------------------------- Reports to shareholders 112,184 12,144 11,973 16,412 7,535 --------------------------------------------------------------------------------------------------------------------- Registration fees 193,154 8,406 23,132 10,737 10,172 --------------------------------------------------------------------------------------------------------------------- Reorganization costs 65,922 14,742 21,929 20,606 20,035 --------------------------------------------------------------------------------------------------------------------- Other 10,614 3,578 2,892 8,640 10,689 --------------------------------------------------------------------------------------------------------------------- Total expenses, before expense reductions 2,519,446 325,596 575,248 742,307 313,104 --------------------------------------------------------------------------------------------------------------------- Expense reductions (658,068) (96,273) (139,229) (121,247) (101,841) --------------------------------------------------------------------------------------------------------------------- Total expenses, after expense reductions 1,861,378 229,323 436,019 621,060 211,263 --------------------------------------------------------------------------------------------------------------------- Net investment income 6,638,753 732,155 1,393,851 1,825,395 885,845 --------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 6,638,753 732,155 1,393,851 1,825,395 885,845 ---------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 16 -------------------------------------------------------------------------------- Statements of Changes in Net Assets --------------------------------------------------------------------------------
New York Pennsylvania Florida -------------------------------------------------------------------------------------------- Years Ended March 31, Years Ended March 31, Years Ended March 31, 2001 2000 2001 2000 2001 2000 --------------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets --------------------------------------------------------------------------------------------------------------------- Operations: --------------------------------------------------------------------------------------------------------------------- Net investment income $ 6,638,753 5,248,867 732,155 302,524 1,393,851 715,742 --------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on investment transactions -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 6,638,753 5,248,867 732,155 302,524 1,393,851 715,742 --------------------------------------------------------------------------------------------------------------------- Distributions to shareholders from net investment income (6,638,753) (5,248,867) (732,155) (302,524) (1,393,851) (715,742) --------------------------------------------------------------------------------------------------------------------- Fund share transactions at net asset value of $1.00 per share: --------------------------------------------------------------------------------------------------------------------- Proceeds from shares sold 988,030,728 1,282,361,905 167,819,809 133,031,398 352,336,517 271,865,669 --------------------------------------------------------------------------------------------------------------------- Reinvestment of distributions 6,574,793 5,200,565 721,258 297,118 1,376,597 696,446 --------------------------------------------------------------------------------------------------------------------- Cost of shares redeemed (1,061,480,170) (1,229,703,912) (165,133,572) (118,217,571) (334,174,812) (255,572,142) --------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from Fund share transactions (66,874,649) 57,858,558 3,407,495 15,110,945 19,538,302 16,989,973 --------------------------------------------------------------------------------------------------------------------- Capital contribution from Advisor (see Note 5) -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets (66,874,649) 57,858,558 3,407,495 15,110,945 19,538,302 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 $ 175,481,067 242,355,716 24,521,124 21,113,629 56,982,158 37,443,856 ---------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 17 -------------------------------------------------------------------------------- Statements of Changes in Net Assets --------------------------------------------------------------------------------
New Jersey Michigan ------------------------------------------------------------- Years Ended March 31, Years Ended March 31, 2001 2000 2001 2000 --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets --------------------------------------------------------------------------------------------------------------------- Operations: --------------------------------------------------------------------------------------------------------------------- Net investment income $ 1,825,395 680,456 885,845 713,652 --------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on investment transactions -- -- -- (203,000) --------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 1,825,395 680,456 885,845 510,652 --------------------------------------------------------------------------------------------------------------------- Distributions to shareholders from net investment income (1,825,395) (680,456) (885,845) (713,652) --------------------------------------------------------------------------------------------------------------------- Fund share transactions at net asset value of $1.00 per share: --------------------------------------------------------------------------------------------------------------------- Proceeds from shares sold 428,562,178 287,875,213 150,677,498 128,656,343 --------------------------------------------------------------------------------------------------------------------- Reinvestment of distributions 1,807,277 643,104 879,961 655,873 --------------------------------------------------------------------------------------------------------------------- Cost of shares redeemed (400,497,592) (256,673,986) (145,420,982) (141,723,917) --------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from Fund share transactions 29,871,863 31,844,331 6,136,477 (12,411,701) --------------------------------------------------------------------------------------------------------------------- Capital contribution from Advisor (see Note 5) -- -- -- 203,000 --------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets 29,871,863 31,844,331 6,136,477 (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 $ 77,045,997 47,174,134 29,349,803 23,213,326 ---------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 18 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, 2001 2000 1999 1998 1997 --------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 1.00 1.00 1.00 1.00 1.00 --------------------------------------------------------------------------------------------------------------------- Net investment income .03 .03 .02 .03 .03 --------------------------------------------------------------------------------------------------------------------- Less distributions from net investment income (.03) (.03) (.02) (.03) (.03) --------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 1.00 1.00 1.00 1.00 1.00 --------------------------------------------------------------------------------------------------------------------- Total Return (%) (b) 3.11 2.59 2.50 2.90 3.03 --------------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets and Supplemental Data --------------------------------------------------------------------------------------------------------------------- Net assets, end of period ($ thousands) 175,481 242,356 184,497 104,198 60,575 --------------------------------------------------------------------------------------------------------------------- Ratio of expenses before expense reductions (%) 1.18(c) .97 .98 .98 .96 --------------------------------------------------------------------------------------------------------------------- Ratio of expenses after expense reductions (%) .87(c) .80 .80 .80 .44 --------------------------------------------------------------------------------------------------------------------- Ratio of net investment income (%) 3.10 2.58 2.41 2.83 2.96 ---------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- Investors Pennsylvania Municipal Cash Fund --------------------------------------------------------------------------------
Year ended March 31, 2001 2000 1999 1998(a) --------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 1.00 1.00 1.00 1.00 --------------------------------------------------------------------------------------------------------------------- Net investment income .03 .03 .02 .02 --------------------------------------------------------------------------------------------------------------------- Less distributions from net investment income (.03) (.03) (.02) (.02) --------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 1.00 1.00 1.00 1.00 --------------------------------------------------------------------------------------------------------------------- Total Return (%) (b) 3.15 2.58 2.50 2.42** --------------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets and Supplemental Data --------------------------------------------------------------------------------------------------------------------- Net assets, end of period ($ thousands) 24,521 21,114 6,003 3,195 --------------------------------------------------------------------------------------------------------------------- Ratio of expenses before expense reductions (%) 1.36(d) 1.39 1.12 1.11* --------------------------------------------------------------------------------------------------------------------- Ratio of expenses after expense reductions (%) .96(d) .90 .90 .90* --------------------------------------------------------------------------------------------------------------------- Ratio of net investment income (%) 3.07 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) The ratios of operating expenses excluding costs incurred with the reorganization before and after expense reductions were 1.14% and .86%, respectively (see Notes to Financial Statements). (d) The ratios of operating expenses excluding costs incurred with the reorganization before and after expense reductions were 1.28% and .93%, respectively (see Notes to Financial Statements). * Annualized ** Not annualized 19 -------------------------------------------------------------------------------- Investors Florida Municipal Cash Fund --------------------------------------------------------------------------------
Year ended March 31, 2001 2000 1999 1998(a) --------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 1.00 1.00 1.00 1.00 --------------------------------------------------------------------------------------------------------------------- Net investment income .03 .02 .02 .02 --------------------------------------------------------------------------------------------------------------------- Less distributions from net investment income (.03) (.02) (.02) (.02) --------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 1.00 1.00 1.00 1.00 --------------------------------------------------------------------------------------------------------------------- Total Return (%) (c) 3.19 2.57 2.50 2.41** --------------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets and Supplemental Data --------------------------------------------------------------------------------------------------------------------- Net assets, end of period ($ thousands) 56,982 37,444 20,454 7,611 --------------------------------------------------------------------------------------------------------------------- Ratio of expenses before expense reductions (%) 1.26(d) 1.13 1.09 .99* --------------------------------------------------------------------------------------------------------------------- Ratio of expenses after expense reductions (%) .96(d) .90 .85 .90* --------------------------------------------------------------------------------------------------------------------- Ratio of net investment income (%) 3.06 2.58 2.36 2.74* --------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- Investors New Jersey Municipal Cash Fund --------------------------------------------------------------------------------------------------------------------- Year ended March 31, 2001 2000 1999 1998(b) --------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 1.00 1.00 1.00 1.00 --------------------------------------------------------------------------------------------------------------------- Net investment income .03 .02 .02 .02 --------------------------------------------------------------------------------------------------------------------- Less distributions from net investment income (.03) (.02) (.02) (.02) --------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 1.00 1.00 1.00 1.00 --------------------------------------------------------------------------------------------------------------------- Total Return (%) (c) 2.89 2.38 2.26 2.22** --------------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets and Supplemental Data --------------------------------------------------------------------------------------------------------------------- Net assets, end of period ($ thousands) 77,046 47,174 15,330 4,665 --------------------------------------------------------------------------------------------------------------------- Ratio of expenses before expense reductions (%) 1.14(e) 1.13 1.12 1.12* --------------------------------------------------------------------------------------------------------------------- Ratio of expenses after expense reductions (%) .95(e) .90 .90 .90* --------------------------------------------------------------------------------------------------------------------- Ratio of net investment income (%) 2.80 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) The ratios of operating expenses excluding costs incurred with the reorganization before and after expense reductions were 1.20% and .94%, respectively (see Notes to Financial Statements). (e) The ratios of operating expenses excluding costs incurred with the reorganization before and after expense reductions were 1.10% and .94%, respectively (see Notes to Financial Statements). * Annualized ** Not annualized 20 -------------------------------------------------------------------------------- Investors Michigan Municipal Cash Fund --------------------------------------------------------------------------------
Year ended March 31, 2001 2000 1999(a) --------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 1.00 1.00 1.00 --------------------------------------------------------------------------------------------------------------------- Net investment income .03 .03 .02 --------------------------------------------------------------------------------------------------------------------- Less distributions from net investment income (.03) (.03) (.02) --------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 1.00 1.00 1.00 --------------------------------------------------------------------------------------------------------------------- Total Return (%) (b) 3.36 2.77(c) 2.41** --------------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets and Supplemental Data --------------------------------------------------------------------------------------------------------------------- Net assets, end of period ($ thousands) 29,350 23,213 35,625 --------------------------------------------------------------------------------------------------------------------- Ratio of expenses before expense reductions (%) 1.16(d) .91 .87* --------------------------------------------------------------------------------------------------------------------- Ratio of expenses after expense reductions (%) .78(d) .75 .75* --------------------------------------------------------------------------------------------------------------------- Ratio of net investment income (%) 3.28 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 (see Note 5). Without this capital contribution, total return would have been lower. (d) The ratios of operating expenses excluding costs incurred with the reorganization before and after expense reductions were 1.07% and .75%, respectively (see Notes to Financial Statements). * Annualized ** Not annualized 21 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 Zurich Scudder Investments, Inc., formerly Scudder Kemper Investments, Inc., ("ZSI or the "Advisor"), 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% of average daily net assets in excess of $3 22 billion. For the year ended March 31, 2001, the Funds incurred the following management fees:
Management fee waived Management by Advisor Effective Fund fee paid ($) ($) rate (%) --------------------------------------------------------------------------------------- Tax-Exempt New York Money Market Fund 224,965 244,220 .11 --------------------------------------------------------------------------------------- Investors Pennsylvania Municipal Cash Fund 41,075 11,365 .17 --------------------------------------------------------------------------------------- Investors Florida Municipal Cash Fund 95,712 4,309 .21 --------------------------------------------------------------------------------------- Investors New Jersey Municipal Cash Fund 143,386 -- .22 --------------------------------------------------------------------------------------- Investors Michigan Municipal Cash Fund 39,099 20,196 .14 ---------------------------------------------------------------------------------------
ZSI agreed to temporarily waive and reimburse certain operating expenses of the Funds. In addition, the Advisor and certain of its subsidiaries have agreed to maintain the annualized expenses of the Funds as follows: For the period August 1, 2000 through March 31, 2001 Expense Fund limit* ---------------------------------------------------------------- Tax-Exempt New York Money Market Fund .90% ---------------------------------------------------------------- Investors Pennsylvania Municipal Cash Fund .95% ---------------------------------------------------------------- Investors Florida Municipal Cash Fund .95% ---------------------------------------------------------------- Investors New Jersey Municipal Cash Fund .95% ---------------------------------------------------------------- Investors Michigan Municipal Cash Fund .75% ---------------------------------------------------------------- For the period April 1, 2000 through July 31, 2000 Expense Fund limit* ---------------------------------------------------------------- Tax-Exempt New York Money Market Fund .80% ---------------------------------------------------------------- Investors Pennsylvania Municipal Cash Fund .90% ---------------------------------------------------------------- Investors Florida Municipal Cash Fund .90% ---------------------------------------------------------------- Investors New Jersey Municipal Cash Fund .90% ---------------------------------------------------------------- Investors Michigan Municipal Cash Fund .75% ---------------------------------------------------------------- * Certain expenses such as reorganization, taxes, brokerage and interest expense are excluded from the expense limitation. Distribution Services Agreement. Each Fund has an administration, shareholder services and distribution agreement with Scudder Distributors, Inc. ("SDI"), formerly Kemper Distributors, Inc. For its services as primary distributor, each Fund pays SDI an annual fee of .50% of average daily net assets, except for the Investors Michigan Municipal Cash Fund, which pays an annual fee of .35% of 23 average daily net assets. For the year ended March 31, 2001, the Funds incurred fees as follows: Unpaid at Distribution March 31, Fund fee paid ($) 2001 ($) -------------------------------------------------------------------------------- Tax-Exempt New York Money Market Fund 1,066,333 -- -------------------------------------------------------------------------------- Investors Pennsylvania Municipal Cash Fund 119,183 -- -------------------------------------------------------------------------------- Investors Florida Municipal Cash Fund 227,320 24,490 -------------------------------------------------------------------------------- Investors New Jersey Municipal Cash Fund 325,880 33,189 -------------------------------------------------------------------------------- Investors Michigan Municipal Cash Fund 94,332 -- -------------------------------------------------------------------------------- SDI has related service agreements with various firms to provide cash management and other services for Fund shareholders. SDI may pay these firms in such amounts as SDI may determine from time to time. Shareholder Services Agreement. Pursuant to a services agreement with the Trust's transfer agent, Scudder Investments Service Company ("SISC"), formerly Kemper Service Company, is the shareholder service agent of the Trust. For the year ended March 31, 2001, SISC received shareholder services fees as follows: Shareholder Shareholder services Unpaid at services fee waived March 31, Fund fee paid ($) by SISC ($) 2001 ($) -------------------------------------------------------------------------------- Tax-Exempt New York Money Market Fund -- 358,096 -- -------------------------------------------------------------------------------- Investors Pennsylvania Municipal Cash Fund -- 71,566 -- -------------------------------------------------------------------------------- Investors Florida Municipal Cash Fund -- 115,640 -- -------------------------------------------------------------------------------- Investors New Jersey Municipal Cash Fund 21,784 102,790 19,007 -------------------------------------------------------------------------------- Investors Michigan Municipal Cash Fund -- 64,491 -- -------------------------------------------------------------------------------- Officers and Trustees. Certain officers or Trustees of the Trust are also officers or directors of Advisor. For the year ended March 31, 2001, the Trust made no payments to its officers and incurred Trustees' fees of $23,068 to independent Trustees. In addition, a one-time fee was accrued for payment to those Trustees not affiliated with the Advisor who did not stand for re-election, under the reorganization discussed in Note 6. Inasmuch as the Advisor will also benefit from administrative 24 efficiencies of a consolidated Board, the Advisor has agreed to bear such costs as follows: Trustee fee One-time reimbursed Trustee by Fund fee ($) Advisor ($) ---------------------------------------------------------------------------- Tax-Exempt New York Money Market Fund 10,428 5,214 ---------------------------------------------------------------------------- Investors Pennsylvania Municipal Cash Fund 4,284 2,142 ---------------------------------------------------------------------------- Investors Florida Municipal Cash Fund 5,210 2,605 ---------------------------------------------------------------------------- Investors New Jersey Municipal Cash Fund 5,554 2,777 ---------------------------------------------------------------------------- Investors Michigan Municipal Cash Fund 4,632 2,316 ---------------------------------------------------------------------------- 3. Expense Off-Set Arrangements Each Fund has entered into an arrangement with its custodian and transfer agent whereby credits realized as a result of uninvested cash balances were used to reduce a portion of each Fund's expenses. For the year ended March 31, 2001, each Fund's custodian and transfer agent fees were reduced as follows: Custodian Transfer fee agent fee Fund reduction ($) reduction ($) ----------------------------------------------------------------------------- Tax-Exempt New York Money Market Fund 4,668 1,922 ----------------------------------------------------------------------------- Investors Pennsylvania Municipal Cash Fund 1,159 213 ----------------------------------------------------------------------------- Investors Florida Municipal Cash Fund 1,646 410 ----------------------------------------------------------------------------- Investors New Jersey Municipal Cash Fund 1,376 567 ----------------------------------------------------------------------------- Investors Michigan Municipal Cash Fund 1,243 238 ----------------------------------------------------------------------------- 4. Line of Credit Each Fund and several affiliated Funds (the "Participants") share in a $750 million revolving credit facility with J.P. Morgan Chase & Co. for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated, pro rata 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. During the year ended March 31, 2001, Investors Florida Municipal Cash Fund's weighted average outstanding daily balance of bank loans (based on the average number of days the loans were outstanding) was approximately $262,500, with a weighted average interest rate of 6.375%. Interest expense for the year ended March 31, 2001 was $350. 5. Capital Contribution On April 15, 1999, the Advisor purchased Michigan Strategic Fund, Thorn Apple Valley, Inc. Project, from the Investors Michigan Municipal Cash Fund for $203,000 in excess of the security's value. The Fund recorded a realized loss on the sale and a capital contribution of an equal amount from the Advisor. The Advisor received no shares of the Fund or other consideration in exchange for such contribution. 6. Reorganization ZSI has initiated a program to reorganize and combine its two fund families, Scudder and Kemper, in response to changing industry conditions and investor needs. The program proposes to streamline 25 the management and operations of most of the funds ZSI advises principally through the liquidation of several small funds, mergers of certain funds with similar investment objectives, the consolidation of certain Board of Directors/Trustees and the adoption of an administrative fee covering the provision of most of the services currently paid for by the affected funds. Costs incurred in connection with this restructuring initiative are being borne jointly by ZSI and certain of the affected funds. Those costs, including printing, shareholder meeting expenses and professional fees, are presented as reorganization expenses in the Statement of Operations of the Fund. ZSI has agreed to reimburse reorganization fees as follows: Reorganization fee reimbursed by Fund Advisor ($) -------------------------------------------------------------------------------- Tax-Exempt New York Money Market Fund 43,948 -------------------------------------------------------------------------------- Investors Pennsylvania Municipal Cash Fund 9,828 -------------------------------------------------------------------------------- Investors Florida Municipal Cash Fund 14,619 -------------------------------------------------------------------------------- Investors New Jersey Municipal Cash Fund 13,737 -------------------------------------------------------------------------------- Investors Michigan Municipal Cash Fund 13,357 -------------------------------------------------------------------------------- 26 Report of Independent Auditors The Board of Trustees and Shareholders Investors Municipal Cash Fund We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Investors Municipal Cash Fund (comprising the Tax-Exempt New York Money Market Fund, Investors Pennsylvania Municipal Cash Fund, Investors Florida Municipal Cash Fund, Investors New Jersey Municipal Cash Fund and Investors Michigan Municipal Cash Fund) (the "Funds"), as of March 31, 2001, the related statements of operations and changes in net assets and the financial highlights for each of the fiscal periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of March 31, 2001, by correspondence with the custodian or other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the portfolios comprising Investors Municipal Cash Fund at March 31, 2001, the results of their operations, the changes in their net assets and the financial highlights for each of the fiscal periods indicated therein in conformity with accounting principles generally accepted in the United States. Chicago, Illinois /s/ Ernst & Young LLP May 4, 2001 27 Tax Information (Unaudited) Of the dividends paid by each Fund for the taxable year ended March 31, 2001, 100% are designated as exempt interest dividends for federal income tax purposes. Please consult a tax advisor if you have questions about federal or state income tax laws, or on how to prepare your tax returns. If you specific questions about your account, please call 1-800-621-1048. 28 This page intentionally left blank. This page intentionally left blank. This page intentionally left blank.