-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ssx4oUfSHKV+kO6mDpRFNjcsTVQJdnsAZM2Ht0PGCM5Rq3rutL56iRrslU5g/Kpi BJjQzJZr1F9PGN6RIiayvA== 0000950137-97-003971.txt : 19971208 0000950137-97-003971.hdr.sgml : 19971208 ACCESSION NUMBER: 0000950137-97-003971 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971205 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: INVESTORS MUNICIPAL CASH FUND CENTRAL INDEX KEY: 0000863420 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-06108 FILM NUMBER: 97732792 BUSINESS ADDRESS: STREET 1: 222 SOUTH RIVERSIDE CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3127811121 MAIL ADDRESS: STREET 1: 222 SOUTH RIVERSIDE CITY: CHICAGO STATE: IL ZIP: 60606 FORMER COMPANY: FORMER CONFORMED NAME: TAX EXEMPT NEW YORK MONEY MARKET FUND DATE OF NAME CHANGE: 19920703 N-30D 1 SEMI-ANNUAL REPORT DATED 9/30/97 1 - -------------------------------------------------------------------------------- DEAR SHAREHOLDERS: INVESTORS MUNICIPAL CASH FUND - -------------------------------------------------------------------------------- We are pleased to provide you with the Investors Municipal Cash Fund semiannual report for the period ended September 30, 1997. The Investors Municipal Cash Fund series includes Tax-Exempt New York Money Market Fund, Investors Pennsylvania Municipal Cash Fund, Investors Florida Municipal Cash Fund and Investors New Jersey Municipal Cash Fund. Your fund's management greatly appreciates your decision to invest in Investors Municipal Cash Fund. The fund registered solid performance and achieved its objective of providing maximum current income exempt from Federal, and where applicable, state income taxes, while maintaining stability of principal. ECONOMIC REVIEW AND OUTLOOK The economy has been growing at a much faster rate than expected. Available data continues to suggest that spending remains strong and economic growth will exceed a 3% level throughout the fourth quarter. Despite this robust pace, there have been few inflationary pressures. Accordingly, the Fed has left interest rates untouched since March of this year. Looking forward, we anticipate that rates will resume an upward bias given the continuing momentum of the economy. Under these conditions, Investors Municipal Cash Fund should offer the opportunity for attractive yields and should continue to be an excellent place to invest your money. Your fund's management thanks you for the confidence you have shown through your investment and continues its dedication to performance. We look forward to serving your investment needs for years to come. Sincerely, Frank J. Rachwalski Frank J. Rachwalski Vice President and Portfolio Manager October 14, 1997 Frank Rachwalski is Senior Vice President of Zurich Kemper Investments, Inc. and Vice President and Portfolio Manager of Investors Municipal Cash Fund. Mr. Rachwalski holds B.B.A. and M.B.A. degrees from Loyola University. PORTFOLIO RESULTS Tax-Exempt New York Money Market Fund had a net annualized yield for the six months ended September 30, 1997 of 2.95% and a tax-equivalent yield of 5.22%. Investors Pennsylvania Municipal Cash Fund had a net annualized yield for the period May 21, 1997 to September 30, 1997 of 2.83% and a tax-equivalent yield of 4.63%. Investors Florida Municipal Cash Fund had a net annualized yield for the period May 22, 1997 to September 30, 1997 of 2.84% and a tax-equivalent yield of 4.52%. Investors New Jersey Municipal Cash Fund had a net annualized yield for the period May 23, 1997 to September 30, 1997 of 2.59% and a tax-equivalent yield of 4.40%. NOTES An investment in the funds is neither insured nor guaranteed by the U.S. Government, and there can be no assurance that the funds will be able to maintain a stable net asset value of $1.00 per share. Each fund's net annualized yield for the period ended September 30, 1997, is the annualized sum of the daily dividend rates for the period. Yields are historical and may not represent future yields, which will fluctuate. For Tax-Exempt New York Money Market Fund, the tax-equivalent yield is based upon the fund's yield and a 43.5% combined Federal and State of New York and New York City marginal income tax rate. For Investors Pennsylvania Municipal Cash Fund, the tax-equivalent yield is based upon the fund's yield and a 38.9% combined Federal and State of Pennsylvania marginal income tax rate. Investors Florida Municipal Cash Fund's tax-equivalent yield is based upon the fund's yield and a 37.1% Federal income tax rate. For Investors New Jersey Municipal Cash Fund, the tax-equivalent yield is based upon the fund's yield and a 41.1% combined Federal and State of New Jersey marginal income tax rate. Income may be subject to local taxes and for some investors, the alternative minimum tax for all funds. The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated above. The manager's views are subject to change at any time, based on market and other conditions. 2 Investors Municipal Cash Fund 2 - -------------------------------------------------------------------------------- TAX-EXEMPT NEW YORK MONEY MARKET FUND Investments at September 30, 1997 (Value in thousands) - --------------------------------------------------------------------------------
Value (A)VARIABLE RATE DEMAND SECURITIES New York State Energy Research and Development Authority: Brooklyn Union Gas Project 3.95% $ 2,500 Niagara Mohawk Power Corp. Project 3.88% 14,650 Housing Finance Agency: East 84th Street 3.95% 2,000 Hospital for Special Surgery 3.70% 1,000 Liberty View Apartments 3.75% 300 Mount Sinai School of Medicine 3.55% 100 Normandie Court I 4.00% 1,500 Trackside Homes Phase III 4.05% 200 250 West 50th Street 4.00% 1,500 Job Development Authority 3.72% 3,195 Local Government Assistance Corp. 3.95% 2,500 Medical Care Facilities Finance Agency: Lenox Hill Hospital Project 4.00% 700 Pooled Equipment Loan Program 3.70% 300 - ----------------------------------------------------------- Babylon Industrial Development Agency 4.05% 1,200 - ----------------------------------------------------------- Dutchess County Industrial Development Agency 4.10% 100 - ----------------------------------------------------------- Franklin County Industrial Development Agency 4.15% 300 - ----------------------------------------------------------- Metropolitan Transportation Authority 4.05% 3,500 - -----------------------------------------------------------
Value New York City General Obligation 4.10% $18,800 Health and Hospitals Corp. 4.00% 2,000 Housing Development Corp.: Columbus Gardens Project 4.05% 1,800 East 96th Street Project 4.20% 2,300 James Tower 4.00% 100 100 Jane Street 4.10% 700 Queenswood Apartments 4.20% 1,500 Tribeca Towers 3.90% 400 West 43rd Street 4.10% 700 Trust for Cultural Resources 3.80% 1,500 - ----------------------------------------------------------- St. Lawrence County Industrial Development Agency 4.05% 500 - ----------------------------------------------------------- Schenectady County Industrial Development Agency 3.85% 100 - ----------------------------------------------------------- TOTAL VARIABLE RATE DEMAND SECURITIES--76.1% (average maturity: 3 days) 65,945 - -----------------------------------------------------------
3 Investors Municipal Cash Fund 3 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Value OTHER SECURITIES New York State Dormitory Authority: Memorial Sloan-Kettering Cancer Center 3.50% - 3.70%, 11/12/97 - 12/16/97 $ 2,800 Second Short-Term Revenue Notes 3.85% - 3.90%, 10/15/97 - 12/12/97 1,572 Environmental Facilities Corp. 3.60% - 3.80%, 11/12/97 - 11/14/97 3,000 General Obligation 3.60% - 3.75%, 10/7/97 - 10/23/97 4,500 Power Authority 3.70% - 3.85%, 11/7/97 - 11/10/97 1,750 - ----------------------------------------------------------- New York City Municipal Water Finance Authority 3.70% - 3.85%, 11/6/97 - 12/18/97 3,800 - ----------------------------------------------------------- Nassau County Tax Anticipation Notes 3.85%, 4/10/98 2,004 - -----------------------------------------------------------
Value Puerto Rico Government Development Bank 3.60%, 11/12/97 $ 2,000 - ----------------------------------------------------------- TOTAL OTHER SECURITIES--24.7% (average maturity: 58 days) 21,426 - ----------------------------------------------------------- TOTAL INVESTMENTS--100.8% (average maturity: 17 days) 87,371 - ----------------------------------------------------------- LIABILITIES, LESS OTHER ASSETS--(.8%) (659) - ----------------------------------------------------------- NET ASSETS--100% $86,712 - ---------------------------------------------------------
See accompanying Notes to Portfolio of Investments. 4 Investors Municipal Cash Fund 4 - -------------------------------------------------------------------------------- INVESTORS PENNSYLVANIA MUNICIPAL CASH FUND Investments at September 30, 1997 (Value in thousands) - --------------------------------------------------------------------------------
Value (A)VARIABLE RATE DEMAND SECURITIES Pennsylvania State Higher Education Assistance Agency 4.10% $ 100 - ----------------------------------------------------------- Allegheny County Higher Education Facilities Authority 4.00% 100 - ----------------------------------------------------------- Chester County Industrial Development Authority 4.25% 100 - ----------------------------------------------------------- Delaware County Industrial Development Authority 3.90% 100 - ----------------------------------------------------------- Emmaus General Authority 4.15% 100 - ----------------------------------------------------------- Erie County Hospital Authority 4.10% 100 - ----------------------------------------------------------- Gettysburg Industrial Development Authority 4.10% 100 - ----------------------------------------------------------- Indiana County Industrial Development Authority 4.15% 100 - ----------------------------------------------------------- Langhorne Saint Mary Hospital Authority 3.80% 100 - ----------------------------------------------------------- Lehigh County Industrial Development Authority 3.60% 100 - ----------------------------------------------------------- Northumberland County Foster Wheeler Mount Carmel Project 4.15% 100 - ----------------------------------------------------------- Philadelphia Authority for Industrial Development 4.25% 100 Redevelopment Authority 4.10% 100 - -----------------------------------------------------------
Value Quakertown Hospital Authority 3.90% $ 100 - ----------------------------------------------------------- Schuylkill County Industrial Development Authority 4.15% 100 - ----------------------------------------------------------- TOTAL VARIABLE RATE DEMAND SECURITIES--56.7% (average maturity: 5 days) 1,500 - ----------------------------------------------------------- OTHER SECURITIES Allegheny County Industrial Development Authority 3.70%, 10/17/97 200 - ----------------------------------------------------------- Beaver County Industrial Development Authority 3.80%, 10/16/97 100 - ----------------------------------------------------------- Carbon County Industrial Development Authority 3.80%, 12/9/97 100 - ----------------------------------------------------------- Delaware County Industrial Development Authority 3.60%, 10/16/97 100 - ----------------------------------------------------------- Montgomery County Industrial Development Authority 3.70%, 11/18/97 100 - ----------------------------------------------------------- Philadelphia Gas Works Revenue 3.80%, 12/17/97 400 General Obligation 3.85%, 10/15/97 100 - -----------------------------------------------------------
5 Investors Municipal Cash Fund 5 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Value Venango Industrial Development Authority 3.85%, 10/22/97 $ 100 - ----------------------------------------------------------- TOTAL OTHER SECURITIES--45.3% (average maturity: 44 days) 1,200 - ----------------------------------------------------------- TOTAL INVESTMENTS--102.0% (average maturity: 22 days) 2,700 - ----------------------------------------------------------- LIABILITIES, LESS OTHER ASSETS--(2.0%) (52) - ----------------------------------------------------------- NET ASSETS--100% $2,648 - ---------------------------------------------------------
See accompanying Notes to Portfolio of Investments. 6 Investors Municipal Cash Fund 6 - -------------------------------------------------------------------------------- INVESTORS FLORIDA MUNICIPAL CASH FUND Investments at September 30, 1997 (Value in thousands) - --------------------------------------------------------------------------------
Value (A)VARIABLE RATE DEMAND SECURITIES Florida State Housing Finance Agency: Oaks at Mill Creek Project 4.15% $ 100 Monterey Meadows Apartments Project 4.15% 100 - ----------------------------------------------------------- Alachua County Health Facilities Authority 4.10% 100 - ----------------------------------------------------------- Dade County Aviation Facilities 4.30% 100 Industrial Development Authority 4.10% 100 - ----------------------------------------------------------- Hillsborough County Industrial Development Authority 4.05% 100 Seaboard Tampa Terminals 4.05% 100 - ----------------------------------------------------------- Jacksonville Hospital Revenue 4.10% 100 Industrial Development Authority 4.05% 100 Trailer Marine Transport Corp. Project 3.65% 100 - ----------------------------------------------------------- Orange County Adventist Health System 4.05% 100 - ----------------------------------------------------------- Orlando Republic Drive Interchange Project 4.00% 100 - ----------------------------------------------------------- Pinellas County Health Revenue 3.80% 100 - -----------------------------------------------------------
Value Puerto Rico Government Development Bank 3.70% $ 100 - ----------------------------------------------------------- TOTAL VARIABLE RATE DEMAND SECURITIES--47.9% (average maturity: 5 days) 1,400 - ----------------------------------------------------------- OTHER SECURITIES Hillsborough County Aviation Authority 3.90%, 12/8/97 100 - ----------------------------------------------------------- Jacksonville Electric Authority 3.70%, 10/22/97 100 - ----------------------------------------------------------- Orange County Commercial Paper Notes 3.75%, 10/22/97 100 - ----------------------------------------------------------- Orlando Capital Improvement Revenue 3.75%, 10/9/97 - 10/23/97 600 - ----------------------------------------------------------- Pinellas County Educational Facilities Authority 3.65%, 10/20/97 100 - ----------------------------------------------------------- Sarasota County Public Hospital District 3.80%, 11/13/97 100 - ----------------------------------------------------------- Sunshine State Governmental Financing Commission 3.75%, 10/14/97 100 - -----------------------------------------------------------
7 Investors Municipal Cash Fund 7 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Value West Orange Memorial Hospital Tax District 3.75%, 10/7/97 $ 100 - ----------------------------------------------------------- Puerto Rico Government Development Bank 3.45%, 10/6/97 100 InterAmerican University of Puerto Rico Project 3.75%, 10/9/97 100 - ----------------------------------------------------------- TOTAL OTHER SECURITIES--51.4%, (average maturity: 21 days) 1,500 - ----------------------------------------------------------- TOTAL INVESTMENTS--99.3% (average maturity: 14 days) 2,900 - ----------------------------------------------------------- CASH AND OTHER ASSETS, LESS LIABILITIES--.7% 19 - ----------------------------------------------------------- NET ASSETS--100% $2,919 - ---------------------------------------------------------
See accompanying Notes to Portfolio of Investments. 8 Investors Municipal Cash Fund 8 - -------------------------------------------------------------------------------- INVESTORS NEW JERSEY MUNICIPAL CASH FUND Investments at September 30, 1997 (Value in thousands) - --------------------------------------------------------------------------------
Value (A)VARIABLE RATE DEMAND SECURITIES New Jersey State Economic Development Authority: 400 International Drive Partners 3.60% $ 100 El Dorado Terminals Co. 3.75% 100 Hoffmann - La Roche, Inc. Project 3.70% 100 National Utility Investors Corp. Project 3.60% 100 New Jersey - American Water Co., Inc. Project 3.90% 100 Pollution Control Revenue 3.70% 100 TRU Urban Renewal Corp. Project 3.65% 200 United Water New Jersey, Inc. Project 3.68% 200 Sports and Exposition 3.85% 100 Turnpike Authority 3.55% 100 - ----------------------------------------------------------- New Jersey Union County Pollution Control Revenue 3.30% 100 - ----------------------------------------------------------- Alabama Phenix City Industrial Development Board 3.95% 100 - ----------------------------------------------------------- District of Columbia General Obligation 4.00% 100 - ----------------------------------------------------------- Illinois Chicago O'Hare International Airport 4.20% 100 - -----------------------------------------------------------
Value Montana Forsyth Pollution Control Revenue 4.15% $ 100 - ----------------------------------------------------------- Puerto Rico Government Development Bank 3.70% 100 - ----------------------------------------------------------- TOTAL VARIABLE RATE DEMAND SECURITIES--69.9% (average maturity: 5 days) 1,800 - ----------------------------------------------------------- OTHER SECURITIES New Jersey State Economic Development Authority 3.75%, 11/13/97 500 Port Authority 3.70%, 12/9/97 120 - ----------------------------------------------------------- Puerto Rico Government Development Bank 3.45%, 10/6/97 100 InterAmerican University of Puerto Rico Project 3.75%, 10/9/97 100 - ----------------------------------------------------------- TOTAL OTHER SECURITIES--31.9% (average maturity: 38 days) 820 - ----------------------------------------------------------- TOTAL INVESTMENTS--101.8% (average maturity: 14 days) 2,620 - ----------------------------------------------------------- LIABILITIES, LESS OTHER ASSETS--(1.8%) (46) - ----------------------------------------------------------- NET ASSETS--100% $2,574 - ---------------------------------------------------------
NOTES TO PORTFOLIO OF INVESTMENTS Interest rates represent annualized yield to date of maturity, except for variable rate demand securities described in Note (a). For each security, cost (for financial reporting and federal income tax purposes) and carrying value are the same. Likewise, carrying value approximates principal amount. (a) Variable rate demand securities are payable within five business days and are backed by credit support agreements from banks or insurance institutions. The rates shown are the current rates at September 30, 1997. See accompanying Notes to Financial Statements. 9 Investors Municipal Cash Fund 9 - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES September 30, 1997 (in thousands) - --------------------------------------------------------------------------------
ASSETS NEW YORK PENNSYLVANIA FLORIDA NEW JERSEY - ------------------------------------------------------------------------------------------------------------------------ Investments, at amortized cost $87,371 2,700 2,900 2,620 - ------------------------------------------------------------------------------------------------------------------------- Cash -- -- 10 -- - ------------------------------------------------------------------------------------------------------------------------- Interest receivable 311 9 12 11 - ------------------------------------------------------------------------------------------------------------------------- Total assets 87,682 2,709 2,922 2,631 - ------------------------------------------------------------------------------------------------------------------------- LIABILITIES AND NET ASSETS - ------------------------------------------------------------------------------------------------------------------------- Cash overdraft 892 58 -- 54 - ------------------------------------------------------------------------------------------------------------------------- Payable for: Dividends 7 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Management fee 3 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Distribution services fee 34 1 1 1 - ------------------------------------------------------------------------------------------------------------------------- Trustees' fees and other 34 2 2 2 - ------------------------------------------------------------------------------------------------------------------------- Total liabilities 970 61 3 57 - ------------------------------------------------------------------------------------------------------------------------- Net assets applicable to shares outstanding $86,712 2,648 2,919 2,574 - ------------------------------------------------------------------------------------------------------------------------- THE PRICING OF SHARES - ------------------------------------------------------------------------------------------------------------------------- Shares outstanding 86,712 2,648 2,919 2,574 - ------------------------------------------------------------------------------------------------------------------------- Net asset value and redemption price per share $1.00 1.00 1.00 1.00 - -------------------------------------------------------------------------------------------------------------------------
10 Investors Municipal Cash Fund 10 - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS Six months ended September 30, 1997 (in thousands) - --------------------------------------------------------------------------------
NEW YORK PENNSYLVANIA(A) FLORIDA(B) NEW JERSEY(C) --------------------------------------------------------------- INTEREST INCOME $1,268 33 34 34 - ------------------------------------------------------------------------------------------------------------------------- EXPENSES: Management fee 75 2 2 2 - ------------------------------------------------------------------------------------------------------------------------- Distribution services fee 169 5 4 5 - ------------------------------------------------------------------------------------------------------------------------- Custodian and transfer agent fees and related expenses 38 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Reports to shareholders 4 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Registration costs 14 1 2 2 - ------------------------------------------------------------------------------------------------------------------------- Professional fees 12 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Trustees' fees and other 21 2 2 2 - ------------------------------------------------------------------------------------------------------------------------- Total expenses before expense waiver 333 10 10 11 - ------------------------------------------------------------------------------------------------------------------------- Less expenses waived by the investment manager (61) (2) (2) (2) - ------------------------------------------------------------------------------------------------------------------------- Total expenses absorbed by the Fund 272 8 8 9 - ------------------------------------------------------------------------------------------------------------------------- Net investment income $ 996 25 26 25 - -------------------------------------------------------------------------------------------------------------------------
(a) For the period from May 21, 1997 (commencement of operations) to September 30, 1997 (b) For the period from May 22, 1997 (commencement of operations) to September 30, 1997 (c) For the period from May 23, 1997 (commencement of operations) to September 30, 1997 STATEMENT OF CHANGES IN NET ASSETS (in thousands) - --------------------------------------------------------------------------------
--------NEW-YORK--------- SIX MONTHS YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, 1997 1997 ------------------------- OPERATIONS, DIVIDENDS AND CAPITAL SHARE ACTIVITY Net investment income $ 996 1,077 - --------------------------------------------------------------------------------------- Dividends to shareholders from net investment income (996) (1,077) - --------------------------------------------------------------------------------------- Capital share transactions (dollar amounts and number of shares are the same): Shares sold 158,615 239,603 - --------------------------------------------------------------------------------------- Shares issued in reinvestment of dividends 1,031 1,034 - --------------------------------------------------------------------------------------- 159,646 240,637 Shares redeemed (133,509) (198,589) - --------------------------------------------------------------------------------------- Net increase from capital share transactions and total increase in net assets 26,137 42,048 - --------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 60,575 18,527 - --------------------------------------------------------------------------------------- End of period $ 86,712 60,575 - ---------------------------------------------------------------------------------------
11 Investors Municipal Cash Fund 11 - -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS (in thousands) - --------------------------------------------------------------------------------
PENNSYLVANIA-------FLORIDA-------NEW-JERSEY-- MAY 21 TO MAY 22 TO MAY 23 TO SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 1997 1997 1997 --------------------------------------------- OPERATIONS, DIVIDENDS AND CAPITAL SHARE ACTIVITY Net investment income $ 25 26 25 - ----------------------------------------------------------------------------------------------------------- Dividends to shareholders from net investment income (25) (26) (25) - ----------------------------------------------------------------------------------------------------------- Capital share transactions (dollar amounts and number of shares are the same): Shares sold 6,073 4,151 8,366 - ----------------------------------------------------------------------------------------------------------- Shares issued in reinvestment of dividends 25 26 24 - ----------------------------------------------------------------------------------------------------------- 6,098 4,177 8,390 Shares redeemed (3,550) (1,358) (5,916) - ----------------------------------------------------------------------------------------------------------- Net increase from capital share transactions and total increase in net assets 2,548 2,819 2,474 - ----------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 100 100 100 - ----------------------------------------------------------------------------------------------------------- End of period $ 2,648 2,919 2,574 - -----------------------------------------------------------------------------------------------------------
See accompanying Notes to Financial Statements. 12 Investors Municipal Cash Fund 12 - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- 1. DESCRIPTION OF THE FUND Investors Municipal Cash Fund (the Trust) is an open-end management investment company organized as a business trust under the laws of Massachusetts currently offering four series of shares. The Tax-Exempt New York Money Market Fund, Investors Pennsylvania Municipal Cash Fund, Investors Florida Municipal Cash Fund and Investors New Jersey Municipal Cash Fund (the Funds) invest in short-term high quality municipal securities. 2. SIGNIFICANT ACCOUNTING POLICIES INVESTMENT VALUATION Investments are stated at amortized cost, which approximates market value. In the event that a deviation of 1/2 of 1% or more exists between a Fund's $1.00 per share net asset value, calculated at amortized cost, and the net asset value calculated by reference to market-based values, or if there is any other deviation that the Board of Trustees believes would result in a material dilution to shareholders or purchasers, the Board of Trustees will promptly consider what action should be initiated. INVESTMENT TRANSACTIONS AND INTEREST INCOME Investment transactions are accounted for on the trade date (date the order to buy or sell is executed). Interest income is recorded on the accrual basis and includes amortization of premium on investments. EXPENSES Expenses arising in connection with a Fund are allocated to that Fund. Other Trust expenses are allocated among the Funds in proportion to their relative net assets. FUND SHARE VALUATION AND DIVIDENDS TO SHAREHOLDERS Fund shares are sold and redeemed on a continuous basis at net asset value. On each day that the New York Stock Exchange is open for trading, each Fund determines its net asset value per share at 11:00 a.m. and 3:00 p.m. Chicago time by dividing the total value of the Fund's investments and other assets, less liabilities, by the number of Fund shares outstanding. Each Fund declares a daily dividend, equal to its net investment income for that day, payable monthly. Net investment income consists of all interest income, plus (minus) all realized gains (losses) on portfolio securities, minus all expenses of the Fund. FEDERAL INCOME TAXES Each Fund has complied with the special provisions of the Internal Revenue Code available to investment companies during the period ended September 30, 1997. 3. TRANSACTIONS WITH AFFILIATES MANAGEMENT AGREEMENT The Trust has a management agreement with Zurich Kemper Investments, Inc. (ZKI) and pays a management fee at an annual rate of .22% of the first $500 million of average daily net assets declining to .15% of average daily net assets in excess of $3 billion. During the period ended September 30, 1997, the Trust incurred management fees of $81,000. DISTRIBUTION AGREEMENT The Trust has an administration, shareholder services and distribution agreement with Zurich Kemper Distributors, Inc. (ZKDI). For its services as primary distributor, the Trust pays ZKDI an annual fee of .50% of average daily net assets of each Fund. For the period ended September 30, 1997, the Trust incurred distribution fees of $183,000. ZKDI has related service agreements with various firms to provide cash management and other services for Fund shareholders. Under these agreements, ZKDI pays such firms based on the average daily net assets of those accounts they maintain and service at an annual rate of .50% for each Fund. During the period ended September 30, 1997, ZKDI paid fees 13 Investors Municipal Cash Fund 13 - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- of $173,000 to various firms pursuant to the related service agreements. SHAREHOLDER SERVICES AGREEMENT Pursuant to a services agreement with the Trust's transfer agent, Zurich Kemper Service Company (ZKSvC) is the shareholder service agent of the Trust. Under the agreement, ZKSvC received shareholder services fees of $34,000 for the period ended September 30, 1997. OFFICERS AND TRUSTEES Certain officers or trustees of the Trust are also officers or directors of ZKI. During the period ended September 30, 1997, the Trust made no payments to its officers and incurred trustees' fees of $4,000 to independent trustees. EXPENSE ABSORPTION ZKI has agreed to temporarily waive its management fee and absorb operating expenses to the extent that such expenses exceed .80% of the average daily net assets of the New York Fund and .90% of the average daily net assets of each of the Pennsylvania, Florida and New Jersey Funds. For the period ended September 30, 1997, ZKI absorbed $67,000 of expenses. 14 Investors Municipal Cash Fund 14 - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
SIX MONTHS ENDED SEPTEMBER 30, YEAR ENDED MARCH 31, NEW YORK 1997 1997 1996 1995 1994 - ------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: Net asset value, beginning of period $ 1.00 1.00 1.00 1.00 1.00 - ------------------------------------------------------------------------------------------------------------------- Net investment income and dividends declared .01 .03 .03 .02 .02 - ------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 1.00 1.00 1.00 1.00 1.00 - ------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (NOT ANNUALIZED) 1.49% 3.03 3.03 2.40 1.63 - ------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS AFTER EXPENSE ABSORPTION (ANNUALIZED): Expenses .80% .44 .80 .80 .80 - ------------------------------------------------------------------------------------------------------------------- Net investment income 2.93% 2.96 2.95 2.44 1.61 - ------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS BEFORE EXPENSE ABSORPTION (ANNUALIZED): Expenses .98% .96 1.14 1.15 1.25 - ------------------------------------------------------------------------------------------------------------------- Net investment income 2.75% 2.44 2.61 2.09 1.16 - ------------------------------------------------------------------------------------------------------------------- SUPPLEMENTAL DATA: Net assets at end of period (in thousands) $86,712 60,575 18,527 14,090 10,762 - -------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA FLORIDA NEW JERSEY ------------- ------------- ------------- MAY 21 TO MAY 22 TO MAY 23 TO SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 1997 1997 1997 - ----------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: Net asset value, beginning of period $ 1.00 1.00 1.00 - ----------------------------------------------------------------------------------------------------------- Net investment income and dividends declared .01 .01 .01 - ----------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 1.00 1.00 1.00 - ----------------------------------------------------------------------------------------------------------- TOTAL RETURN (NOT ANNUALIZED) .96% .95 .87 - ----------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS AFTER EXPENSE ABSORPTION (ANNUALIZED): Expenses .89% .89 .90 - ----------------------------------------------------------------------------------------------------------- Net investment income 2.31% 2.82 2.57 - ----------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS BEFORE EXPENSE ABSORPTION (ANNUALIZED): Expenses 1.11% 1.11 1.12 - ----------------------------------------------------------------------------------------------------------- Net investment income 2.59% 2.60 2.35 - ----------------------------------------------------------------------------------------------------------- SUPPLEMENTAL DATA: Net assets at end of period (in thousands) $2,648 2,919 2,574 - -----------------------------------------------------------------------------------------------------------
Note: ZKI has agreed to temporarily waive its management fee and absorb certain expenses of the Funds. 15 Investors Municipal Cash Fund Semiannual Report September 30, 1997 INVESTMENT MANAGER: ZURICH KEMPER INVESTMENTS, INC. PRINCIPAL UNDERWRITER: ZURICH KEMPER DISTRIBUTORS, INC. 222 S. Riverside Plaza, Chicago, IL 60606 www.kemper.com This report is not to be distributed unless preceded or accompanied by a prospectus. IMCF-3 1039190 10/97 (LOGO)printed on recycled paper -----END PRIVACY-ENHANCED MESSAGE-----