-----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, RNmwWpPLzIETn1F7Qu2C3QoPXyh715EDB731tQALS8mJ0Ad+N1tagBdtsJks+LvY fyjsOOvEN/Y8tiWiAizrtQ== 0000950137-98-002336.txt : 19980604 0000950137-98-002336.hdr.sgml : 19980604 ACCESSION NUMBER: 0000950137-98-002336 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980603 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: 98641661 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 ANNUAL REPORT DATED 3/31/98 1 - -------------------------------------------------------------------------------- DEAR SHAREHOLDERS: INVESTORS MUNICIPAL CASH FUND - -------------------------------------------------------------------------------- We are pleased to provide you with the Investors Municipal Cash Fund annual report for the year ended March 31, 1998. 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. During the past year 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 Strong economic indicators prove that the U.S. economy's growth is still surprisingly robust. Inflation has disappeared from the economy for the second time in three months in March and is down for the first quarter of 1998; consumer spending is high, unemployment is low and GDP growth continues to remain strong with an outlook of at least a 3.5% growth rate this quarter. Inflation is expected to accelerate later this year, but still be relatively moderate. 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 May 18, 1998 Frank Rachwalski is a Managing Director of Scudder 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 yield for the year ended March 31, 1998, of 2.86% and a tax-equivalent yield of 5.06%. Investors Pennsylvania Municipal Cash Fund had a net annualized yield for the period May 21, 1997 to March 31, 1998 of 2.78% and a tax-equivalent yield of 4.55%. Investors Florida Municipal Cash Fund had a net annualized yield for the period May 22, 1997 to March 31, 1998 of 2.77% and a tax-equivalent yield of 4.40%. Investors New Jersey Municipal Cash Fund had a net annualized yield for the period May 23, 1997 to March 31, 1998 of 2.56% and a tax-equivalent yield of 4.35%. NOTES Investors Michigan Municipal Cash Fund commenced operations on April 6, 1998. An investment in a fund is neither insured nor guaranteed by the U.S. Government, and there can be no assurance that a fund will be able to maintain a stable net asset value of $1.00 per share. Each fund's net yield for the year ended March 31, 1998, 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, 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 March 31, 1998 (Value in thousands) - --------------------------------------------------------------------------------
Value (A)VARIABLE RATE DEMAND SECURITIES New York State Energy Research and Development Authority: Brooklyn Union Gas Project 3.60% $ 4,480 Electric & Gas Corp. Project 3.65% 1,500 Niagara Mohawk Power Corp. Project 3.83% 19,750 Housing Finance Agency: East 84th Street 3.60% 2,000 Hospital for Special Surgery 3.30% 960 Normandie Court I 3.50% 1,500 Trackside Homes Phase III 3.60% 195 250 West 50th Street 3.60% 1,500 Job Development Authority 3.94% 2,855 Local Government Assistance Corp. 3.45% 2,500 Medical Care Facilities Finance Agency: Lenox Hill Hospital Project 3.60% 600 Pooled Equipment Loan Program 3.60% 300 - ----------------------------------------------------------- Babylon Industrial Development Agency: J. D'Addario & Co., Inc. Project 3.60% 2,100 OFS Equity of Babylon, Inc. Project 3.70% 2,000 - -----------------------------------------------------------
Value Franklin County Industrial Development Agency 3.95% $ 300 - ----------------------------------------------------------- New York City General Obligation 3.77% 12,800 Health and Hospitals Corp. 3.50% 2,000 Housing Development Corp.: Columbus Gardens Project 3.45% 3,800 100 Jane Street 3.65% 3,700 West 43rd Street 3.65% 700 Municipal Water Finance Authority 4.00% 4,700 Trust for Cultural Resources 3.35% 1,500 - ----------------------------------------------------------- St. Lawrence County Industrial Development Agency 3.70% 500 - ----------------------------------------------------------- TOTAL VARIABLE RATE DEMAND SECURITIES--69.4% (average maturity: 4 days) 72,240 - -----------------------------------------------------------
3 Investors Municipal Cash Fund 3 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Value OTHER SECURITIES New York State Dormitory Authority: Columbia University 3.50%, 6/22/98 $ 1,845 Memorial Sloan-Kettering Cancer Center 3.05% - 3.60%, 4/3/98 - 5/11/98 3,800 Second Short-Term Revenue Notes 3.75% - 4.00%, 5/14/98 - 6/26/98 3,237 Environmental Facilities Corp. 3.00%, 4/3/98 2,000 General Obligation 3.65%, 6/25/98 5,000 Power Authority 3.30% - 3.65%, 5/1/98 4,850 - ----------------------------------------------------------- New York City Municipal Water Finance Authority 3.45%, 5/8/98 3,500 - ----------------------------------------------------------- Buffalo Revenue Anticipation Notes 3.82%, 8/5/98 3,006 - -----------------------------------------------------------
Value Monroe County General Obligation 3.25% - 3.35%, 5/11/98 $ 3,000 - ----------------------------------------------------------- Nassau County Bond Anticipation Notes 3.60%, 8/17/98 3,005 Revenue Anticipation Notes 3.85%, 4/10/98 2,000 - ----------------------------------------------------------- TOTAL OTHER SECURITIES--33.8% (average maturity: 60 days) 35,243 - ----------------------------------------------------------- TOTAL INVESTMENTS--103.2% (average maturity: 22 days) 107,483 - ----------------------------------------------------------- LIABILITIES, LESS OTHER ASSETS--(3.2%) (3,285) - ----------------------------------------------------------- NET ASSETS--100% $104,198 - -----------------------------------------------------------
See accompanying Notes to Portfolios of Investments. 4 Investors Municipal Cash Fund 4 - -------------------------------------------------------------------------------- INVESTORS PENNSYLVANIA MUNICIPAL CASH FUND Investments at March 31, 1998 (Value in thousands) - --------------------------------------------------------------------------------
Value (A)VARIABLE RATE DEMAND SECURITIES PENNSYLVANIA OBLIGATIONS - ----------------------------------------------------------- Pennsylvania State Higher Education Assistance Agency 3.80% $ 100 Higher Education Facilities Authority 3.70% 100 - ----------------------------------------------------------- Allegheny County Industrial Development Authority 3.70% 100 - ----------------------------------------------------------- Chester County Industrial Development Authority 3.90% 100 - ----------------------------------------------------------- Dauphin County General Authority 3.75% 100 - ----------------------------------------------------------- Delaware County Industrial Development Authority 3.80% 100 - ----------------------------------------------------------- Emmaus General Authority 3.70% 100 - ----------------------------------------------------------- Erie County Hospital Authority 3.80% 100 - ----------------------------------------------------------- Gettysburg Industrial Development Authority 3.75% 100 - ----------------------------------------------------------- Indiana County Industrial Development Authority 3.65% 100 - ----------------------------------------------------------- Lehigh County Industrial Development Authority 3.40% 100 Lehigh Valley Hospital 3.70% 100 - -----------------------------------------------------------
Value Northumberland County Foster Wheeler Mount Carmel Project 3.80% $ 95 - ----------------------------------------------------------- Philadelphia Authority for Industrial Development Fox Chase Cancer Center Project 3.75% 100 Harbor View Towers Project 4.15% 100 - ----------------------------------------------------------- Quakertown Hospital Authority 3.75% 100 - ----------------------------------------------------------- Schuylkill County Industrial Development Authority 3.70% 100 - ----------------------------------------------------------- Washington County Higher Education Pooled Equipment Leasing Program 3.75% 100 - ----------------------------------------------------------- OTHER OBLIGATIONS - ----------------------------------------------------------- Florida Hillsborough County Industrial Development Authority 3.80% 100 - ----------------------------------------------------------- Puerto Rico Government Development Bank 3.38% 100 - ----------------------------------------------------------- TOTAL VARIABLE RATE DEMAND SECURITIES--62.4% (average maturity: 6 days) 1,995 - -----------------------------------------------------------
5 Investors Municipal Cash Fund 5 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Value OTHER SECURITIES Allegheny County Industrial Development Authority 3.35%, 6/12/98 $ 200 - ----------------------------------------------------------- Beaver County Industrial Development Authority 3.60%, 7/20/98 100 - ----------------------------------------------------------- Carbon County Industrial Development Authority 3.25%, 4/3/98 100 - ----------------------------------------------------------- Delaware County Industrial Development Authority 3.50%, 4/28/98 100 - ----------------------------------------------------------- Montgomery County Industrial Development Authority 3.30%, 5/12/98 100 - -----------------------------------------------------------
Value Philadelphia Gas Works Revenue 3.40%, 4/15/98 $ 500 - ----------------------------------------------------------- Venango Industrial Development Authority 3.55%, 6/25/98 100 - ----------------------------------------------------------- TOTAL OTHER SECURITIES--37.6% (average maturity: 41 days) 1,200 - ----------------------------------------------------------- TOTAL INVESTMENTS AND NET ASSETS--100% (average maturity: 19 days) $3,195 - -----------------------------------------------------------
See accompanying Notes to Portfolios of Investments. 6 Investors Municipal Cash Fund 6 - -------------------------------------------------------------------------------- INVESTORS FLORIDA MUNICIPAL CASH FUND Investments at March 31, 1998 (Value in thousands) - --------------------------------------------------------------------------------
Value (A)VARIABLE RATE DEMAND SECURITIES FLORIDA OBLIGATIONS - ----------------------------------------------------------- Dade County Aviation Facilities 3.65% $ 360 Capital Asset Acquisition 4.35% 400 Industrial Development Authority Dolphins Stadium Project 3.70% 300 Stephen Greene Project 3.75% 385 - ----------------------------------------------------------- Hillsborough County Industrial Development Authority 3.80% 500 - ----------------------------------------------------------- Jacksonville Industrial Development Authority 3.70% 300 Trailer Marine Transport Corp. Project 3.45% 300 - ----------------------------------------------------------- Lake Wales Medical Centers Revenue 3.70% 300 - ----------------------------------------------------------- Orlando Republic Drive Interchange Project 3.65% 200 - ----------------------------------------------------------- Pinellas County Health Revenue 3.65% 300 - ----------------------------------------------------------- St. Lucie County Pollution Control Revenue 3.85% 300 - ----------------------------------------------------------- OTHER OBLIGATIONS - ----------------------------------------------------------- California Los Angeles International Airport 3.75% 200 - ----------------------------------------------------------- District of Columbia General Obligation 3.85% 200 - -----------------------------------------------------------
Value Montana Forsyth Pollution Control Revenue 3.70% $ 200 - ----------------------------------------------------------- New York Babylon Industrial Development Authority 3.70% 100 New York City General Obligation 3.80% 225 - ----------------------------------------------------------- Oregon Port of Morrow Portland General Electric Co. Boardman Project 4.10% 300 - ----------------------------------------------------------- Texas Brazos River Authority Pollution Control Revenue 4.05% 100 - ----------------------------------------------------------- TOTAL VARIABLE RATE DEMAND SECURITIES--65.3% (average maturity: 4 days) 4,970 - ----------------------------------------------------------- OTHER SECURITIES Hillsborough County Aviation Authority 3.50%, 7/17/98 500 - ----------------------------------------------------------- Jacksonville Electric Authority 3.35%, 6/12/98 200 - ----------------------------------------------------------- Orange County Commercial Paper Notes 3.00% - 3.15%, 4/2/98 300 West Orange Memorial Hospital Tax District 3.35%, 4/27/98 200 - ----------------------------------------------------------- Orlando Capital Improvement Revenue 3.60%, 6/11/98 200 - -----------------------------------------------------------
7 Investors Municipal Cash Fund 7 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Value Pinellas County Educational Facilities Authority 3.00%, 4/6/98 $ 100 - ----------------------------------------------------------- Sarasota County Public Hospital District 3.20%, 4/3/98 200 - ----------------------------------------------------------- Sunshine State Governmental Financing Commission 3.15% - 3.55%, 4/13/98 - 6/23/98 800 - ----------------------------------------------------------- Puerto Rico Government Development Bank 3.25%, 4/8/98 100 - ----------------------------------------------------------- TOTAL OTHER SECURITIES--34.2% (average maturity: 58 days) 2,600 - ----------------------------------------------------------- TOTAL INVESTMENTS--99.5% (average maturity: 23 days) 7,570 - ----------------------------------------------------------- CASH AND OTHER ASSETS, LESS LIABILITIES--.5% 41 - ----------------------------------------------------------- NET ASSETS--100% $7,611 - -----------------------------------------------------------
See accompanying Notes to Portfolios of Investments. 8 Investors Municipal Cash Fund 8 - -------------------------------------------------------------------------------- INVESTORS NEW JERSEY MUNICIPAL CASH FUND Investments at March 31, 1998 (Value in thousands) - --------------------------------------------------------------------------------
Value (A)VARIABLE RATE DEMAND SECURITIES NEW JERSEY OBLIGATIONS - ----------------------------------------------------------- New Jersey State Economic Development Authority: 400 International Drive Partners 3.55% $ 200 El Dorado Terminals Co. 3.70% 100 Epitaxx Inc. Project 4.28% 200 Hoffmann - La Roche Inc. Project 3.45% 200 National Utility Investors Corp. Project 3.60% 200 Natural Gas Co. Project 3.30% 200 Pollution Control Revenue 3.38% 200 TRU Urban Renewal Corp. Project 3.80% 200 Thermal Energy Facilities Revenue 3.40% 100 Sports and Exposition 3.45% 200 Turnpike Authority 3.15% 200 - ----------------------------------------------------------- Union County Pollution Control Revenue 3.40% 200 - ----------------------------------------------------------- OTHER OBLIGATIONS - ----------------------------------------------------------- Alabama Phenix City Industrial Development Board 3.80% 200 - ----------------------------------------------------------- District of Columbia General Obligation 3.75% 200 - ----------------------------------------------------------- Florida Hillsborough County Industrial Development Authority 3.80% 200 - -----------------------------------------------------------
Value Oregon Port of Morrow Portland General Electric Co. Boardman Project 4.10% $ 200 - ----------------------------------------------------------- TOTAL VARIABLE RATE DEMAND SECURITIES--64.3% (average maturity: 3 days) 3,000 - ----------------------------------------------------------- OTHER SECURITIES New Jersey State Economic Development Authority 3.10%, 4/3/98 500 Education Facilities Authority 3.15%, 4/7/98 300 Port Authority 3.40%, 7/17/98 200 Tax and Revenue Anticipation Notes 3.60%, 5/13/98 100 - ----------------------------------------------------------- Salem County Pollution Control Revenue 3.05% - 3.25% , 5/4/98 200 - ----------------------------------------------------------- Puerto Rico Government Development Bank 3.25%, 4/8/98 100 - ----------------------------------------------------------- TOTAL OTHER SECURITIES--30.0% (average maturity: 27 days) 1,400 - ----------------------------------------------------------- TOTAL INVESTMENTS--94.3% (average maturity: 11 days) 4,400 - ----------------------------------------------------------- CASH AND OTHER ASSETS, LESS LIABILITIES--5.7% 265 - ----------------------------------------------------------- NET ASSETS--100% $4,665 - -----------------------------------------------------------
NOTES TO PORTFOLIOS 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 March 31, 1998. See accompanying Notes to Financial Statements. 9 Investors Municipal Cash Fund 9 - -------------------------------------------------------------------------------- REPORT OF INDEPENDENT AUDITORS - -------------------------------------------------------------------------------- THE BOARD OF TRUSTEES AND SHAREHOLDERS INVESTORS MUNICIPAL CASH FUND We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Tax-Exempt New York Money Market Fund, Investors Pennsylvania Municipal Cash Fund, Investors Florida Municipal Cash Fund and Investors New Jersey Municipal Cash Fund, comprising Investors Municipal Cash Fund, as of March 31, 1998, the related statements of operations and changes in net assets for the periods indicated therein and the financial highlights for each of the fiscal periods since 1994. These financial statements and financial highlights are the responsibility of the Fund's 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 generally accepted auditing standards. 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, 1998, by correspondence with the custodian and brokers. 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 Funds comprising Investors Municipal Cash Fund at March 31, 1998, the results of their operations, the changes in their net assets and the financial highlights for the periods indicated therein in conformity with generally accepted accounting principles. ERNST & YOUNG LLP Chicago, Illinois May 18, 1998 10 Investors Municipal Cash Fund 10 - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES March 31, 1998 (in thousands) - --------------------------------------------------------------------------------
ASSETS NEW YORK PENNSYLVANIA FLORIDA NEW JERSEY - ------------------------------------------------------------------------------------------------------------------------- Investments, at amortized cost $107,483 3,195 7,570 4,400 - ------------------------------------------------------------------------------------------------------------------------- Cash -- -- 27 276 - ------------------------------------------------------------------------------------------------------------------------- Receivable for: Interest 330 9 28 13 - ------------------------------------------------------------------------------------------------------------------------- Fund shares sold 8 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Total assets 107,821 3,204 7,625 4,689 - ------------------------------------------------------------------------------------------------------------------------- LIABILITIES AND NET ASSETS - ------------------------------------------------------------------------------------------------------------------------- Cash overdraft 3,332 6 -- -- - ------------------------------------------------------------------------------------------------------------------------- Payable for: Dividends 7 -- 1 -- - ------------------------------------------------------------------------------------------------------------------------- Fund shares redeemed 166 1 -- 19 - ------------------------------------------------------------------------------------------------------------------------- Management fee 3 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Distribution services fee 43 1 3 2 - ------------------------------------------------------------------------------------------------------------------------- Trustees' fees and other 72 1 10 3 - ------------------------------------------------------------------------------------------------------------------------- Total liabilities 3,623 9 14 24 - ------------------------------------------------------------------------------------------------------------------------- Net assets applicable to shares outstanding $104,198 3,195 7,611 4,665 - ------------------------------------------------------------------------------------------------------------------------- THE PRICING OF SHARES - ------------------------------------------------------------------------------------------------------------------------- Shares outstanding 104,198 3,195 7,611 4,665 - ------------------------------------------------------------------------------------------------------------------------- Net asset value and redemption price per share $1.00 1.00 1.00 1.00 - -------------------------------------------------------------------------------------------------------------------------
See accompanying Notes to Financial Statements. 11 Investors Municipal Cash Fund 11 - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS Year ended March 31, 1998 (in thousands) - --------------------------------------------------------------------------------
NEW YORK PENNSYLVANIA(A) FLORIDA(B) NEW JERSEY(C) --------------------------------------------------------------- INTEREST INCOME $2,983 88 155 123 - ------------------------------------------------------------------------------------------------------------------------- EXPENSES: Management fee 181 5 9 8 - ------------------------------------------------------------------------------------------------------------------------- Distribution services fee 411 12 21 18 - ------------------------------------------------------------------------------------------------------------------------- Custodian and transfer agent fees and related expenses 136 2 4 4 - ------------------------------------------------------------------------------------------------------------------------- Reports to shareholders 32 -- 1 1 - ------------------------------------------------------------------------------------------------------------------------- Registration costs 14 6 6 8 - ------------------------------------------------------------------------------------------------------------------------- Professional fees 21 1 1 1 - ------------------------------------------------------------------------------------------------------------------------- Trustees' fees 9 -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Total expenses before expense waiver 804 26 42 40 - ------------------------------------------------------------------------------------------------------------------------- Less expenses waived by the investment manager (149) (5) (4) (8) - ------------------------------------------------------------------------------------------------------------------------- Total expenses absorbed by the Fund 655 21 38 32 - ------------------------------------------------------------------------------------------------------------------------- Net investment income $2,328 67 117 91 - -------------------------------------------------------------------------------------------------------------------------
(a) For the period from May 21, 1997 (commencement of operations) to March 31, 1998 (b) For the period from May 22, 1997 (commencement of operations) to March 31, 1998 (c) For the period from May 23, 1997 (commencement of operations) to March 31, 1998 12 Investors Municipal Cash Fund 12 - -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS (in thousands) - --------------------------------------------------------------------------------
NEW YORK ----------------------- YEAR ENDED MARCH 31, 1998 1997 ----------------------- OPERATIONS, DIVIDENDS AND CAPITAL SHARE ACTIVITY Net investment income $ 2,328 1,077 - ------------------------------------------------------------------------------------- Dividends to shareholders from net investment income (2,328) (1,077) - ------------------------------------------------------------------------------------- Capital share transactions (dollar amounts and number of shares are the same): Shares sold 389,412 239,603 - ------------------------------------------------------------------------------------- Shares issued in reinvestment of dividends 2,361 1,034 - ------------------------------------------------------------------------------------- 391,773 240,637 Shares redeemed (348,150) (198,589) - ------------------------------------------------------------------------------------- Net increase from capital share transactions and total increase in net assets 43,623 42,048 - ------------------------------------------------------------------------------------- NET ASSETS: Beginning of year 60,575 18,527 - ------------------------------------------------------------------------------------- End of year $104,198 60,575 - -------------------------------------------------------------------------------------
See accompanying Notes to Financial Statements. 13 Investors Municipal Cash Fund 13 - -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS (in thousands) - --------------------------------------------------------------------------------
NEW PENNSYLVANIA FLORIDA JERSEY ------------------------------------ MAY 21, MAY 22, MAY 23, 1997 TO 1997 TO 1997 TO MARCH 31, MARCH 31, MARCH 31, 1998 1998 1998 ------------------------------------ OPERATIONS, DIVIDENDS AND CAPITAL SHARE ACTIVITY Net investment income $ 67 117 91 - -------------------------------------------------------------------------------------------------- Dividends to shareholders from net investment income (67) (117) (91) - -------------------------------------------------------------------------------------------------- Capital share transactions (dollar amounts and number of shares are the same): Shares sold 14,257 41,975 29,234 - -------------------------------------------------------------------------------------------------- Shares issued in reinvestment of dividends 66 111 89 - -------------------------------------------------------------------------------------------------- 14,323 42,086 29,323 Shares redeemed (11,228) (34,575) (24,758) - -------------------------------------------------------------------------------------------------- Net increase from capital share transactions and total increase in net assets 3,095 7,511 4,565 - -------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 100 100 100 - -------------------------------------------------------------------------------------------------- End of period $ 3,195 7,611 4,665 - --------------------------------------------------------------------------------------------------
14 Investors Municipal Cash Fund 14 - -------------------------------------------------------------------------------- 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 and therefore no federal income tax provision is required. 3. TRANSACTIONS WITH AFFILIATES INVESTMENT MANAGER COMBINATION Effective December 31, 1997, Zurich Insurance Company, the parent of Zurich Kemper Investments, Inc. (ZKI), acquired a majority interest in Scudder, Stevens & Clark, Inc. (Scudder), another major investment manager. As a result of this transaction, the operations of ZKI were combined with Scudder to form a new global investment organization named Scudder Kemper Investments, Inc. (Scudder Kemper). The transaction resulted in the termination of the Funds' investment management agreement with ZKI, however, a new investment management agreement between the Funds and Scudder Kemper was approved by the Funds' Board of Trustees and by the Funds' shareholders. The new management agreement, which was effective December 31, 1997, is the same in all material respects as the previous management agreement, except that Scudder Kemper is the new investment adviser to the Funds. In addition, the names of the Funds' principal underwriter and shareholder service agent were changed to Kemper Distributors, Inc. (KDI) and Kemper Service Company (KSvC), respectively. 15 Investors Municipal Cash Fund 15 - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- MANAGEMENT AGREEMENT The Funds have a management agreement with Scudder Kemper and pay 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 year ended March 31, 1998, the Funds incurred management fees of $37,000 after an expense waiver by Scudder Kemper. DISTRIBUTION AGREEMENT The Funds have an administration, shareholder services and distribution agreement with Kemper Distributors, Inc. For its services as primary distributor, the Funds pay KDI an annual fee of .50% of average daily net assets of each Fund. For the year ended March 31, 1998, the Funds incurred distribution fees of $462,000. KDI has related service agreements with various firms to provide cash management and other services for Fund shareholders. Under these agreements, KDI 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 year ended March 31, 1998, KDI paid fees of $445,000 to various firms pursuant to the related service agreements. SHAREHOLDER SERVICES AGREEMENT Pursuant to a services agreement with the Trust's transfer agent, KSvC is the shareholder service agent of the Trust. Under the agreement, KSvC received shareholder services fees of $94,000 for the year ended March 31, 1998. OFFICERS AND TRUSTEES Certain officers or trustees of the Trust are also officers or directors of Scudder Kemper. During the year ended March 31, 1998, the Trust made no payments to its officers and incurred trustees' fees of $9,000 to independent trustees. EXPENSE ABSORPTION Scudder Kemper has agreed to temporarily waive a portion of 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 year ended March 31, 1998, Scudder Kemper waived $166,000 of expenses. 16 Investors Municipal Cash Fund 16 - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
YEAR ENDED MARCH 31, NEW YORK 1998 1997 1996 1995 1994 - -------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: Net asset value, beginning of year $ 1.00 1.00 1.00 1.00 1.00 - -------------------------------------------------------------------------------------------------------------- Net investment income .03 .03 .03 .02 .02 - -------------------------------------------------------------------------------------------------------------- Less dividends declared .03 .03 .03 .02 .02 - -------------------------------------------------------------------------------------------------------------- Net asset value, end of year $ 1.00 1.00 1.00 1.00 1.00 - -------------------------------------------------------------------------------------------------------------- TOTAL RETURN 2.90% 3.03 3.03 2.40 1.63 - -------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS AFTER EXPENSE WAIVER OR ABSORPTION: Expenses .80% .44 .80 .80 .80 - -------------------------------------------------------------------------------------------------------------- Net investment income 2.83% 2.96 2.95 2.44 1.61 - -------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS BEFORE EXPENSE WAIVER OR ABSORPTION: Expenses .98% .96 1.14 1.15 1.25 - -------------------------------------------------------------------------------------------------------------- Net investment income 2.65% 2.44 2.61 2.09 1.16 - -------------------------------------------------------------------------------------------------------------- SUPPLEMENTAL DATA: Net assets at end of year (in thousands) $104,198 60,575 18,527 14,090 10,762 - --------------------------------------------------------------------------------------------------------------
PENNSYLVANIA FLORIDA NEW JERSEY --------------- --------------- --------------- MAY 21, 1997 TO MAY 22, 1997 TO MAY 23, 1997 TO MARCH 31, MARCH 31, MARCH 31, 1998 1998 1998 - ----------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: Net asset value, beginning of period $ 1.00 1.00 1.00 - ----------------------------------------------------------------------------------------------------------------- Net investment income .02 .02 .02 - ----------------------------------------------------------------------------------------------------------------- Less dividends declared .02 .02 .02 - ----------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 1.00 1.00 1.00 - ----------------------------------------------------------------------------------------------------------------- TOTAL RETURN (NOT ANNUALIZED) 2.42% 2.41 2.22 - ----------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS AFTER EXPENSE WAIVER (ANNUALIZED): Expenses .90% .90 .90 - ----------------------------------------------------------------------------------------------------------------- Net investment income 2.76% 2.74 2.55 - ----------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS BEFORE EXPENSE WAIVER (ANNUALIZED): Expenses 1.11% .99 1.12 - ----------------------------------------------------------------------------------------------------------------- Net investment income 2.55% 2.65 2.33 - ----------------------------------------------------------------------------------------------------------------- SUPPLEMENTAL DATA: Net assets at end of period (in thousands) $3,195 7,611 4,665 - -----------------------------------------------------------------------------------------------------------------
Note: Scudder Kemper has agreed to temporarily waive a portion of its management fee and absorb certain expenses of the Funds. FEDERAL TAX STATUS OF 1998 DIVIDENDS All of the dividends paid by the Funds constitute tax-exempt interest which is not taxable for federal income tax purposes; however, a portion of the dividends paid may be includable in the alternative minimum tax calculation. 17 Investors Municipal Cash Fund 17 - -------------------------------------------------------------------------------- SPECIAL SHAREHOLDERS' MEETING On December 3, 1997, a special shareholders' meeting was held and adjourned as necessary. Investors Municipal Cash Fund shareholders were asked to vote on five separate issues: election of nine members to the Board of Trustees, ratification of Ernst & Young LLP as independent auditors, approval of new investment management agreement with Scudder Kemper Investments, Inc., approval of new rule 12b-1 distribution plan with Zurich Kemper Distributors, Inc. and approval of changes in investment policies. The results are as follows: ITEM 1: ELECTION OF THE BOARD OF TRUSTEES.
AFFIRMATIVE WITHHELD - ----------------------------------------------------- INVESTORS MUNICIPAL CASH FUND DAVID W. BELIN 60,761,958 1,487,736 LEWIS A. BURNHAM 60,760,435 1,489,259 DONALD L. DUNAWAY 60,761,958 1,487,736 ROBERT B. HOFFMAN 60,760,435 1,489,259 DONALD R. JONES 60,760,435 1,489,259 SHIRLEY D. PETERSON 60,760,435 1,489,259 DANIEL PIERCE 60,760,435 1,489,259 WILLIAM P. SOMMERS 60,761,958 1,487,736 EDMOND D. VILLANI 60,760,435 1,489,259
ITEM 2: SELECTION OF ERNST & YOUNG LLP AS INDEPENDENT AUDITORS. AFFIRMATIVE AGAINST ABSTAIN - ------------------------------- 60,948,496 366,783 934,415 ITEM 3: NEW INVESTMENT MANAGEMENT AGREEMENT. AFFIRMATIVE AGAINST ABSTAIN - ----------------------------------- INVESTORS FLORIDA MUNICIPAL CASH FUND 2,591,576 9,475 0 INVESTORS NEW JERSEY MUNICIPAL CASH FUND 3,106,760 60,275 2,237 INVESTORS PENNSYLVANIA MUNICIPAL CASH FUND 2,666,957 1,792 16,590 TAX-EXEMPT NEW YORK MONEY MARKET FUND 50,996,883 1,585,936 1,211,213 ITEM 4: NEW RULE 12B-1 DISTRIBUTION PLAN. AFFIRMATIVE AGAINST ABSTAIN - ----------------------------------- INVESTORS FLORIDA MUNICIPAL CASH FUND 2,561,838 9,475 29,738 INVESTORS NEW JERSEY MUNICIPAL CASH FUND 3,085,957 70,415 12,900 INVESTORS PENNSYLVANIA MUNICIPAL CASH FUND 2,666,957 1,792 16,590 TAX-EXEMPT NEW YORK MONEY MARKET FUND 49,399,496 2,618,995 1,775,541 ITEM 5: APPROVE CHANGES IN INVESTMENT POLICIES. AFFIRMATIVE AGAINST ABSTAIN - ---------------------------------------------- INVESTORS FLORIDA MUNICIPAL CASH FUND 2,561,838 9,475 29,738 INVESTORS NEW JERSEY MUNICIPAL CASH FUND 1,959,248 92,121 12,900 INVESTORS PENNSYLVANIA MUNICIPAL CASH FUND 2,183,048 1,792 16,590 TAX-EXEMPT NEW YORK MONEY MARKET FUND 22,493,789 2,749,142 2,220,488 18 INVESTORS MUNICIPAL CASH FUND ANNUAL REPORT MARCH 31, 1998 PRINCIPAL UNDERWRITER: KEMPER DISTRIBUTORS, INC. 222 S. Riverside Plaza, Chicago, IL 60606 This report is not to be distributed unless preceded or accompanied by an Investors Municipal Cash Fund prospectus. IMCF-2 1047170 4/98 (LOGO)printed on recycled paper -----END PRIVACY-ENHANCED MESSAGE-----