Dresdner RCM Global Funds Inc – ‘N-30D’ for 6/30/97

As of:  Thursday, 8/28/97   ·   For:  6/30/97   ·   Accession #:  912057-97-29264   ·   File #:  811-09100

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Annual or Semi-Annual Report Mailed to Shareholders   —   Rule 30d-1
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-30D       Annual or Semi-Annual Report Mailed to                17     68K 
                          Shareholders                                           

Document Table of Contents

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RCM GLOBAL SMALL CAP FUND                                                       
SEMI-ANNUAL REPORT                                                              
JUNE 30, 1997                                                                   

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     RCM GLOBAL SMALL CAP FUND
     MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE

The value of an investment in the RCM Global Small Cap Fund (the "Fund")        
appreciated 17.50% for the six-month period ended June 30, 1997.  This          
performance far surpassed the Fund's benchmark, the Salomon Brothers Extended   
Market Index, which returned 6.89% for the same period. The Fund registered     
especially strong performance in the second quarter of 1997, supported by the   
strong recovery in its U.S. holdings and continued performance in its           
international holdings.                                                         

A common characteristic of the world stock markets during the first half 1997   
was the persistent leadership of very large capitalization issues. The          
respective small cap universes in the Fund's two largest markets, the U.S. and  
the U.K., both underperformed their large capitalization benchmarks. In the U.S.
the Russell 2000 benchmark (+10.2%) lagged the S&P 500 (+20.6%) by 1,040 basis  
points. In the U.K., the Small Cap index (+1.6%) underperformed the FTSE 100    
(+11.8%) by 1,020 basis points.  The same phenomenon of small cap               
underperformance during the first half of this year took place in France and, to
a lesser degree, in Japan. In the major markets, only the German and Dutch small
caps outperformed with exceptional absolute performance of 37.4% and 129.0%,    
respectively.                                                                   

The Fund's country weightings varied little for the period. Our most significant
country weighting shift was in the U.S.  Early in the year, RCM Capital         
Management, L.L.C. ("RCM"), the Fund's investment manager, was anticipating the 
traditional seasonal factors favoring "secondary cap" stocks, based on evidence 
of improved relative strength in small cap stocks in the final months of 1996.  
Importantly, RCM believed that the valuations of small cap universes had become 
attractive versus their own historical ranges and relative to large caps. Based 
on these considerations, RCM chose to overweight the U.S. with a 60% allocation 
against an approximate 50% benchmark weighting. The Fund's other significant    
regional exposures at the beginning of the year were Europe at 23%, Latin       
America at under 7%, Canada at over 6% and Asia at under 4%. By the end of the  
first quarter, however, the underperformance of the U.S. markets and continued  
deterioration of the environment for U.S. small caps led to a minor shift toward
a 50% U.S. weighting in the Fund.                                               

This approximation of the benchmark U.S. weighting worked well for the Fund up  
through May, at which point the Fund's investments performed well as the small  
cap rally began. U.S. small caps -- especially higher growth and higher P/E     
multiple sectors -- underperformed when the market corrected in March on fears  
of rising interest rates, but the worst relative performance of the first half  
of the year occurred in April.  By the end of April 1997, the spread between    
12-month S&P returns and Russell 2000 performance had reached its highest level 
ever, at  -25%. As the U.S. market recovered, the Fund's portfolio was well-    

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positioned to benefit, as extremely compressed multiples of quality growth      
issues expanded and technology stocks re-emerged as market leaders.             

Despite the challenges presented by the majority of our markets, the Fund       
benefited from the many opportunities discovered in selected, quality small cap 
stocks during the first six months of 1997. U.S. holdings in telecommunications,
technology, and business services made a positive contribution to the Fund's    
relative performance in the first half. The Fund's major U.S. holding was       
International Telecommunication Data  Systems, which registered a total return  
in excess of 100% in the second quarter.                                        

Outside the U.S., stock selection was again a key factor in the Fund's          
performance. Over the first half, Sixt AG, the German car rental and leasing    
company, had appreciated by over 200%. The Fund's exposure in the leisure time  
products and services group also added to relative performance, owing largely to
substantial positions in lodging stocks, such as Four Seasons Hotels in Canada  
(+43% total return in the first half of 1997), Sol Melia in Spain (+24%), and   
CapStar Hotel Co. in the U.S.(+62%).                                            

In Latin America, the Fund had strong performance in several holdings. Vina     
Concha Y Toro, the Chilean wine producer, returned 21% over our brief           
holding period, while the Mexican home builder, Consorcio ARA, returned over    
59% over our holding period. In Canada, the Fund's holding in Leitch            
Technology performed well with a return of 27% in the first half of 1997.       

Going into the second half of 1997, the world equity market environment         
appears to reflect a continued favorable  economic outlook: low inflation,      
continued healthy -- but not overheated -- GDP growth and no immediate reason   
to anticipate significant interest-rate hikes by the world's major central      
banks. Only in the United Kingdom does RCM believe that rates have bottomed.    
There have also been currency-related rate hikes in parts of Asia and Eastern   
Europe, but the Fund has very limited exposure to these regions. RCM has been   
encouraged by the improved relative performance of secondary capitalization     
stocks at the end of the first half of the year and believes that this trend    
supports its primary task of discovering attractively valued growth stocks      
around the world. The Fund retains significant overweightings in growth         
industries such as technology, health care and telecommunications, with a       
cash position at the lower end of a "normal" range.                             

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RCM GLOBAL SMALL CAP FUND                                                       
PERFORMANCE SUMMARY                                                             
--------------------------------------------------------------------------------

[GRAPH]                                                                       

     RCM Global Small Cap      Salomon EMI's Index
     --------------------      -------------------
Dec-96                     10,000                   10,000                      
Jan-97                     10,290                   10,021                      
Feb-97                     10,010                   10,005                      
Mar-97                      9,410                    9,665                      
Apr-97                      9,340                    9,620                      
May-97                     10,730                   10,370                      
Jun-97                     11,750                   10,689                      

PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.                       

The chart above shows the performance of the RCM Global Small Cap Fund since the
Fund's inception  versus the Salomon Brothers Extended Market Index.(a)  The    
chart represents a cumulative return(b)(c) of 17.50% for the Fund. The chart    
assumes a hypothetical $10,000 initial investment in the Fund and reflects all  
Fund expenses.                                                                  

TOTAL RETURNS(b)                                                                
JUNE 30, 1997                                                                   
LIFE OF                                                   
YTD        FUND(c)                                                              
------------------                                                              
17.50%    17.50%                                                                

The data above represent past performance of the Fund and may not be indicative 
of future performance.  The investment return and principal value of an         
investment in the Fund will fluctuate, so that shares, when redeemed, may be    
worth more or less than their original cost.                                    

---------------                                                                 
(a)  The Salomon Brothers Extended Market Index ("EMI") is a component of the   
     Salomon Brothers Broad Market Index ("BMI") which includes listed shares of
  5,409 companies with a total available market capitalization of at least
     the local equivalent of US$100 million on the last business day of May each
     year.  The BMI consists of two components: the Primary Market Index ("PMI")
is the large-capitalization stock component and the EMI is the small- 
capitalization stock component.  The PMI universe is defined as those 
     stocks falling within the top 80% of the cumulative available capital level
in each country. The EMI includes the bottom 20% of the cumulative    
available capital level in each country.                              
(b)  Returns assume reinvestment of all dividends and capital gains             
distributions at net asset value.                                     
(c)  The Fund commenced operations on December 31, 1996.                        

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     RCM GLOBAL SMALL CAP FUND
      INVESTMENTS IN SECURITIES AND NET ASSETS
     JUNE 30, 1997
     (UNAUDITED)

                                                        [Enlarge/Download Table]


                                                                               % OF                  
  SHARES      COUNTRY        EQUITY INVESTMENTS                              NET ASSETS  MARKET VALUE
----------    -------        -------------------------------                 ----------  ------------
                                                                                                     
CONSUMER DURABLES SECTOR                                                          3.6%               

                             AUTOMOTIVE RELATED                                   1.4%               

    1,500      US            Tower Automotive Inc. *                                     $     64,500

                             OTHER CONSUMER DURABLES                              2.2%               

    1,500      NL            Koninklijke Ahrend Groep N.V.                                    101,438

CONSUMER NON-DURABLES SECTOR                                                     20.8%               

                             FOOD AND FOOD PROCESSING                             5.5%               

    2,340      JP            Hokuto Corp.                                                      82,819
      440      FR            Lambert Dodard Chancereul S.A.                                    80,716
   53,000      ID            PT Daya Guna Samudera, Foreign *                                  95,363
                                                                                              -------
                                                                                              258,898
                                                                                              -------

                             GENERAL RETAIL                                       4.2%               

  134,000      HK            Glorious Sun Enterprises *                                        63,564
    3,000      US            Samsonite Corp. *                                                132,375
                                                                                              -------
                                                                                              195,939
                                                                                              -------

                             HOUSEHOLD/RELATED NON-DURABLES                       6.0%               

   10,000      US            Carson Inc. *                                                    107,500
    3,500      US            Scotts Co. *                                                     101,500
    5,000      CH            Tag Heuer International S.A. (Sponsored ADR) *                    75,313
                                                                                              -------
                                                                                              284,313
                                                                                              -------

                             LEISURE TIME PRODUCTS/SERVICES                       5.1%               

    2,500      US            CapStar Hotel Co. *                                               80,000
    1,600      CA            Four Seasons Hotels Inc.                                          47,400
      265      FR            Grand Optical-Photoservice                                        40,263
    1,800      ES            Sol Melia S.A. *                                                  74,046
                                                                                              -------
                                                                                              241,709
                                                                                              -------

CYCLICAL/CAPITAL GOODS SECTOR                                                     9.1%               

                             AEROSPACE AND DEFENSE                                1.0%               

    2,000      GB            Doncasters PLC *                                                  46,250


 The accompanying notes are an integral part of the financial statements

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                                                                % OF                  
  SHARES     COUNTRY  EQUITY INVESTMENTS                      NET ASSETS  MARKET VALUE
----------   -------  -------------------------------         ----------  ------------
                                                                                      
                      BUILDING AND CONSTRUCTION                    2.4%               

   17,000      MX     Consorcio ARA S.A. *                                $     59,733
   10,000      IE     Green Property PLC                                        52,425
                                                                               -------
                                                                               112,158
                                                                               -------

                      CHEMICALS AND TEXTILES                       0.7%               

      320      AT     Wolford AG                                                31,058

                      INDUSTRIAL EQUIPMENT                         3.3%               

    4,200      GB     Powerscreen International PLC                             45,925
    2,500      US     Rofin-Sinar Technologies *                                47,813
    3,100      NO     Tomra Systems A/S                                         63,518
                                                                               -------
                                                                               157,256
                                                                               -------

                      TRANSPORTATION SERVICES                      1.7%               

      500      DE     Sixt AG                                                   47,775
      313      DE     Sixt AG Bonus Rights *                                    30,438
                                                                               -------
                                                                                78,213
                                                                               -------

ENERGY SECTOR                                                      5.0%               

                      ENERGY                                       5.0%               

    2,000      CA     Ballard Power Systems Inc. *                              67,775
    2,000      GB     British-Borneo Petroleum Syndicate PLC                    47,100
    3,000      US     Houston Exploration Co. *                                 46,687
    3,000      NO     Smedvig ASA                                               74,992
                                                                               -------
                                                                               236,554
                                                                               -------

HEALTH CARE SECTOR                                                14.9%               

                      DRUGS & HOSPITAL SUPPLIES                    6.8%               

    2,000      US     Closure Medical Corp. *                                   38,500
    1,000      HU     Gedeon Richter Ltd. 144A (GDR) (a)                        92,000
    2,200      CL     Laboratorio Chile S.A. (ADR)                              62,975
    2,200      US     OxiGENE Inc.                                              71,983
    1,200      US     Sofamor/Danek Group Inc. *                                54,900
                                                                               -------
                                                                               320,358
                                                                               -------

 The accompanying notes are an integral part of the financial statements

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                                                                             % OF                  
  SHARES     COUNTRY       EQUITY INVESTMENTS                              NET ASSETS  MARKET VALUE
----------   -------       -------------------------------                 ----------  ------------
                                                                                                   
                           HEALTH CARE SERVICES                                 8.1%               

    5,000      US          Advanced Health Corp. *                                     $     91,875
    2,000      US          Curative Technologies Inc. *                                      57,500
    7,000      US          Harborside Healthcare Corp. *                                     99,750
    3,000      US          OccuSystems Inc.                                                  87,000
    2,500      US          Transition Systems Inc. *                                         45,469
                                                                                            -------
                                                                                            381,594
                                                                                            -------

INTEREST-SENSITIVE SECTOR                                                       3.8%               

                           BANKING                                              3.8%               

    1,800      US          Community First Bankshares Inc.                                   69,075
   19,600      HK          Dah Sing Financial Holdings Ltd.                                 108,534
                                                                                            -------
                                                                                            177,609
                                                                                            -------

TECHNOLOGY SECTOR                                                              22.5%               

                           ELECTRONICS AND NEW TECHNOLOGY                       7.5%               

    2,000      TW          ASE Test Ltd. *                                                   84,500
    4,000      US          Computer Products Inc. *                                         100,000
    2,200      CA          Leitch Technology Corp. *                                         51,908
    2,000      US          Uniphase Corp. *                                                 116,500
                                                                                            -------
                                                                                            352,908
                                                                                            -------

                           TECHNOLOGY SERVICES                                 15.0%               

      150      FR          Group Axime *                                                     17,757
    5,800      FR          Business Objects S.A. (Sponsored ADR) *                           56,550
    2,600      GB          Dr. Solomons Group PLC (Sponsored ADR) *                          65,975
    1,500      SE          Enator AB *                                                       26,771
    2,000      US          Engineering Animation Inc. *                                      67,500
    6,000      US          International Telecommunication Systems Inc. *                   147,000
    4,000      JP          Nippon Systems Development                                        95,429
    7,000      CA          Open Text Corp.                                                   65,625
    2,400      US          Renaissance Solutions Inc. *                                      88,800
    1,500      US          VERITAS Software Co. *                                            75,375
                                                                                            -------
                                                                                            706,782
                                                                                            -------

TELEMEDIA/SERVICES SECTOR                                                      18.3%               

                           BUSINESS SERVICES                                   10.5%               

    1,500      US          Caribiner International Inc. *                                    48,937
    6,000      GB          Delphi Group PLC                                                  73,895
    3,000      US          F. Y. I. Inc. *                                                   72,000
    3,000      US          Healthcare Recoveries Inc. *                                      58,125

 The accompanying notes are an integral part of the financial statements

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                                                                                   % OF                   
  SHARES     COUNTRY         EQUITY INVESTMENTS                                  NET ASSETS  MARKET VALUE 
----------   -------         -------------------------------                     ----------  ------------ 
                                                                                                          
                             BUSINESS SERVICES                                                            
                             (CONTINUED)                                                                  

    4,600      CA            Philip Services Corp. *                                         $     73,025 
    2,000      US            Romac International *                                                 65,500 
    1,200      US            The Registry Inc. *                                                   55,200 
    2,000      US            Wilmar Industries Inc. *                                              48,750 
                                                                                                  ------- 
                                                                                                  495,432 
                                                                                                  ------- 

                             COMMUNICATION SERVICES                                   5.0%                

    2,500      US            LHS Group Inc. *                                                     109,531 
    3,000      US            Precision Response Corp.                                              49,500 
    5,000      US            Smartalk Teleservices Inc. *                                          77,500 
                                                                                                  ------- 
                                                                                                  236,531 
                                                                                                  ------- 

                             MEDIA SERVICES                                           2.8%                

    5,000      BM            Central European Media Entertainment Ltd. Class A *                  130,000 
                                                                                                  ------- 

TOTAL EQUITY INVESTMENTS                                                                                  
(COST $3,994,888)                                                                    98.0%      4,609,500 
                                                                                                --------- 

SHORT-TERM INVESTMENTS                                                                                    

                             MONEY MARKET FUNDS                                       3.5%                

  165,119      US            SSgA U.S. Government Money Market Fund                               165,119 
                                                                                                  ------- 

TOTAL SHORT-TERM INVESTMENTS                                                          3.5%                
(COST $165,119)                                                                                   165,119 
                                                                                                  ------- 

TOTAL INVESTMENTS  (COST $4,160,007)                                                101.5%      4,774,619 

                             OTHER ASSETS LESS LIABILITIES                           (1.5%)       (72,785)
                                                                                                  ------- 

                             NET ASSETS                                             100.0%   $  4,701,834 
                                                                                                --------- 
                                                                                                --------- 


*    Non-income producing security.                                           
(a)   Security is purchased pursuant to Rule 144A of the Securities Act of 1933 
and may be resold only to qualified institutional buyers.           

      The accompanying notes are an integral part of the financial statements.

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     RCM GLOBAL SMALL CAP FUND
      INVESTMENTS IN SECURITIES AND NET ASSETS
     JUNE 30, 1997
     (UNAUDITED)

The Fund's investments in securities at June 30, 1997, categorized by country:  

               % of Net Assets
                 -----------------------------------------------------
   Country                    Short-Term
Country             Code      Equities        and Other           Total 
-------           -------     --------        ----------          ----- 
Austria             AT          0.6%                               0.6% 
Bermuda             BM          2.7%                               2.7% 
Canada              CA          6.5%                               6.5% 
Chile               CL          1.3%                               1.3% 
France              FR          4.1%                               4.1% 
Germany             DE          1.7%                               1.7% 
Hong Kong           HK          3.7%                               3.7% 
Hungary             HU          2.0%                               2.0% 
Indonesia           ID          2.0%              2.0%             4.0% 
Ireland             IE          1.1%                               1.1% 
Japan               JP          3.8%                               3.8% 
Mexico              MX          1.3%                               1.3% 
Netherlands         NL          2.2%                               2.2% 
Norway              NO          2.9%                               2.9% 
Spain               ES          1.6%                               1.6% 
Sweden              SE          0.6%                               0.6% 
Switzerland         CH          1.6%                               1.6% 
Taiwan              TW          1.8%                               1.8% 
United Kingdom      GB          5.9%                               5.9% 
United States       US         54.1%              (3.5%)          50.6% 
                             ------              ------         ------
 Total                       101.5%              (1.5%)         100.0%
                             ------              ------         ------
                             ------              ------         ------

      The accompanying notes are an integral part of the financial statements.

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     RCM GLOBAL SMALL CAP FUND
     STATEMENT OF ASSETS AND LIABILITIES
     JUNE 30, 1997
     (UNAUDITED)

                                                                [Download Table]


                                                                                 
ASSETS:                                                                          
    Investments in securities, at value (cost $4,160,007) (Note 1)   $  4,774,619
    Foreign currency, at value (cost $92,415) (Note 1)                     92,383
    Receivable for investments sold                                        78,997
    Deferred organizational costs (Note 5)                                  9,000
    Dividends receivable                                                    1,735
                                                                     ------------
         Total Assets                                                   4,956,734
                                                                     ------------

LIABILITIES:                                                                     
    Payable for investments purchased                                     211,438
    Payable for professional fees                                          14,878
    Payable for organizational costs (Note 5)                               8,032
    Payable for Directors' fees (Note 7)                                    7,439
    Payable for management fees (Note 6)                                    5,019
    Payable for miscellaneous expenses                                      8,094
                                                                     ------------
         Total Liabilities                                                254,900
                                                                     ------------
NET ASSETS                                                           $  4,701,834
                                                                     ------------
                                                                     ------------

NET ASSETS CONSIST OF:                                                           
    Paid-in capital (Note 3)                                         $  4,000,100
    Net investment loss                                                  (35,153)
    Accumulated net realized gain on investments and foreign                     
         currency transactions                                            122,156
    Net unrealized appreciation on investments and translation of                
         other assets and liabilities in foreign currencies               614,731
                                                                     ------------
NET ASSETS                                                           $  4,701,834
                                                                    -------------
                                                                    -------------

NET ASSET VALUE PER SHARE                                                        
     ($4,701,834 DIVIDED BY 400,010 shares outstanding)              $      11.75
                                                                     ------------
                                                                     ------------


      The accompanying notes are an integral part of the financial statements.

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     RCM GLOBAL SMALL CAP FUND
     STATEMENT OF OPERATIONS
      FOR THE SIX MONTHS ENDED JUNE 30, 1997
     (UNAUDITED)

                                                        [Enlarge/Download Table]


                                                                                      
INVESTMENT INCOME:                                                                    
    Income:                                                                           
         Dividends (net of foreign withholding tax of $1,031)                $  15,110

    Expenses:                                                                         
         Investment management fees (Note 6)                                    25,132
         Directors' fees (Note 7)                                               12,439
         Transfer agent fees                                                    10,152
         Legal fees                                                              7,439
         Audit fees                                                              7,439
         Custodian fees                                                          4,673
         Registration and filing fees                                            4,169
         Amortization of organizational costs (Note 5)                           1,000
         Miscellaneous expenses                                                  4,164
                                                                             ---------
              Total expenses before reimbursements                              76,607
         Expenses reimbursed by investment manager (Note 6)                   (26,344)
                                                                             ---------
              Total net expenses                                                50,263
                                                                             ---------

                Net investment loss                                           (35,153)
                                                                             ---------

NET REALIZED AND UNREALIZED GAIN (LOSS):                                              
    Net realized gain from investments                                         136,236
    Net realized loss from foreign currency transactions                      (14,080)
                                                                             ---------
              Net realized gain                                                122,156
                                                                             ---------

    Net change in unrealized appreciation on investments and                          
         translation of other assets and liabilities in foreign currencies     614,731
                                                                             ---------

              Net realized and unrealized gain during the period               736,887
                                                                             ---------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS                        $  701,734
                                                                            ----------
                                                                            ----------


      The accompanying notes are an integral part of the financisl statements.

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     RCM GLOBAL SMALL CAP FUND
     STATEMENTS OF CHANGES IN NET ASSETS

                                                        [Enlarge/Download Table]


                                                                        December 31, 1996
                                                      Six months ended   (commencement   
                                                        June 30, 1997   of operations) to
                                                         (Unaudited)    December 31, 1996
                                                      ----------------  -----------------
                                                                                         
OPERATIONS:                                                                              
    Net investment loss                                 $  (35,153)        $     -       
    Net realized gain on investments and foreign                                         
         currency transactions                             122,156               -       
    Net change in unrealized appreciation on                                             
         investments and translation of other assets                                     
         and liabilities in foreign currencies             614,731               -       
                                                        ----------         ----------    

    Net increase in net assets resulting from                                            
         operations                                        701,734               -       

NET INCREASE FROM CAPITAL SHARES TRANSACTIONS                                            
    (Note 3)                                                   100          4,000,000    
                                                        ----------         ----------    

TOTAL INCREASE IN NET ASSETS                               701,834          4,000,000    

NET ASSETS:                                                                              
         Beginning of period                             4,000,000               -       
                                                        ----------         ----------    
         End of period *                                $4,701,834         $4,000,000    
                                                        ----------         ----------    
                                                        ----------         ----------    

--------------------                                                                     
*   Includes accumulated net investment loss of:        $  (35,153)        $      -      
                                                        ----------         ----------    
                                                        ----------         ----------    


      The accompanying notes are an integral part of the financial statements.

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     RCM GLOBAL SMALL CAP FUND
      FINANCIAL HIGHLIGHTS

Selected data for each share of capital stock outstanding are as follows:       

                                                        [Enlarge/Download Table]


                                                                         December 31, 1996 
                                                   Six months ended       (commencement    
                                                     June 30, 1997       of operations) to 
                                                      (Unaudited)        December 31, 1996 

                                                                                           
PER SHARE OPERATING PERFORMANCE:                                                           
    Net asset value, beginning of period                   $  10.00           $  10.00     
                                                          ---------           ---------    
    Net investment loss (a)                                   (0.09) (b)            -      
    Net realized and unrealized gain                                                       
         on investments (a)                                    1.84                 -      
                                                          ---------           ---------    
    Net increase in net asset value                                                        
         resulting from investment operations (a)              1.75                 -      
                                                          ---------           ---------    

NET ASSET VALUE, END OF PERIOD                            $   11.75           $  10.00     
                                                          ---------           ---------    
                                                          ---------           ---------    

TOTAL RETURN (c)                                             17.50%               0.00%    
                                                          ---------           ---------    
                                                          ---------           ---------    

RATIOS AND SUPPLEMENTAL DATA:                                                              
Average commission rate paid per share (d)                $  0.0260           $  0.0465    
                                                          ---------           ---------    
                                                          ---------           ---------    

Net assets, end of period (in 000's)                      $   4,702           $   4,000    
                                                          ---------           ---------    
                                                          ---------           ---------    

Ratio of expenses to average net assets                       2.50% (b)(e)        0.00% (g)
                                                          ---------           ---------    
                                                          ---------           ---------    
Ratio of net investment loss to average                                                    
    net assets                                              (1.75%) (b)(e)        0.00% (g)
                                                          ---------          ----------    
                                                          ---------          ----------    

Portfolio turnover                                           73.57% (f)           0.00% (g)
                                                          ---------          ----------    
                                                          ---------          ----------    


--------------------                                                            
(a) Calculated using the average share method.                                  
(b) Includes reimbursement by the Fund's investment manager of certain ordinary 
 operating expenses equal to $0.07 per share (calculated using the average
share method).  Without such reimbursement, the ratio of expenses to    
average net assets would have been 3.81% and the ratio of net investment
loss to average net assets would have been (3.06%) (see Note 6).        
(c) Total return measures the change in value of an investment in the Fund over 
the period indicated.                                                   
(d) For fiscal years beginning on or after September 1, 1995, a fund is         
required to disclose its average commission rate per share for security 
  trades on which commissions are charged.  This amount may vary from period
to period and fund to fund depending on the mix of trades executed in   
various markets where trading practices and commission structures may   
differ.                                                                 
(e) Annualized.                                                                 
(f) Not annualized.                                                             
(g) Not annualized.  Fund was in operation for one day.                         

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     RCM GLOBAL SMALL CAP FUND
     NOTES TO FINANCIAL STATEMENTS
     JUNE 30, 1997
     (UNAUDITED)

1.  SIGNIFICANT ACCOUNTING POLICIES                                             

RCM Global Small Cap Fund (the "Fund") is a diversified series of RCM   
   Equity Funds, Inc. (the "Company").  The Company is organized as a Maryland
  corporation and is registered under the Investment Company Act of 1940, as
  amended, as an open-end management investment company.  The Fund commenced
operations on December 31, 1996.                                        

  The following is a summary of significant accounting policies consistently
 followed by the Fund in the preparation of its financial statements.  The
policies are in conformity with generally accepted accounting principles
  which require management to make estimates and assumptions that affect the
  reported amount of assets and liabilities.  Actual results may differ from
these estimates.                                                        

A.  SECURITIES VALUATIONS:                                              

 Investment securities are stated at fair market value.  Equity securities
   traded on stock exchanges are valued at the last sale price on the exchange
or in the principal over-the-counter market in which such securities are
traded as of the close of business on the day the securities are being  
 valued.  If there has been no sale on such day, then the security will be
  valued at the closing bid price on such day.  If no bid price is quoted on
 such day, then the security will be valued by such method as the Board of
Directors of the Company in good faith deems appropriate to reflect its 
fair market value.  Readily marketable securities traded only in the    
  over-the-counter market that are not listed on the National Association of
Securities Dealers, Inc. Automated Quotation System or similar foreign  
   reporting service will be valued at the mean bid price, or using such other
comparable sources as the Board of Directors of the Company deems       
   appropriate to reflect their fair market value.  Other portfolio securities
  held by the Fund will be valued at current market value, if current market
 quotations are readily available for such securities.  To the extent that
   market quotations are not readily available, such securities will be valued
   by whatever means the Board of Directors of the Company in good faith deems
appropriate to reflect their fair market value.  Short-term investments 
with a maturity of 60 days or less are valued at amortized cost, which  
approximates market value.                                              

B.  SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME:                

Security transactions are recorded as of the date of purchase or sale.  
Realized gains and losses on security transactions are determined on the
 identified cost basis for both financial statement and federal income tax
 purposes.  Interest income, foreign taxes and expenses are accrued daily.
Dividends are recorded on the ex-dividend date.                         

C.  FOREIGN CURRENCY TRANSACTIONS:                                      

The records of the Fund are maintained in U.S. dollars.  Foreign        
currencies, investments, and other assets and liabilities are translated
into U.S. dollars at current exchange rates.  Purchases and sales of    
 foreign securities and income and withholding taxes are translated on the
respective dates of such transactions.  Net realized currency gains and 
losses include foreign currency gains and losses between trade date and 
settlement date and foreign currency transactions.  The Fund does not   
isolate that portion of foreign currency exchange fluctuation on        
   investments from unrealized appreciation and depreciation which arises from
changes in market prices.  Such fluctuations are included with the net  
unrealized appreciation or  depreciation on investments.                

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     RCM GLOBAL SMALL CAP FUND
     NOTES TO FINANCIAL STATEMENTS
     JUNE 30, 1997
     (UNAUDITED)

1.  SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)                                 

D.  FEDERAL INCOME TAXES:                                               

It is the policy of the Fund to comply with the requirements for        
qualification as a "regulated investment company" under the Internal    
   Revenue Code of 1986, as amended (the "Code").  It is also the intention of
   the Fund to make distributions sufficient to avoid imposition of any excise
  tax under Section 4982 of the Code.  Therefore, no provision has been made
for Federal or excise taxes on income and capital gains.                

E.  DISTRIBUTIONS:                                                      

 Distributions to shareholders are recorded by the Fund on the ex-dividend
 date.  Income and capital gain distributions are determined in accordance
with Federal income tax regulations, which may differ from generally    
accepted accounting principles.  These differences are primarily due to 
 differing treatments of income and gains on various investment securities
held by the Fund and timing differences.                                

2.  INVESTMENT IN FOREIGN SECURITIES                                            

 Investing in foreign equity securities and currency transactions involves
significant risks, some of which are not typically associated with      
  investments of domestic origin.  The Fund's investments in foreign markets
will subject the Fund to the risk of foreign currency exchange rate     
fluctuations, perceived credit risk, and adverse economic and political 
developments.                                                           

3.  CAPITAL SHARES                                                              

  At June 30, 1997, there were 1,000,000,000 shares of the Company's capital
stock authorized at $0.0001 par value.  Of this amount, 50,000,000 were 
 classified as shares of the Fund; 50,000,000 were classified as shares of
RCM Global Technology Fund; 50,000,000 were classified as shares of RCM 
  Global Health Care Fund; 50,000,000 were classified as shares of RCM Large
Cap Growth Fund; 50,000,000 were classified as shares of Dresdner RCM   
 Emerging Markets Fund; and 750,000,000 shares remain unclassified.  There
were 400,000 shares sold for a total of $4,000,000 on December 31, 1996 
  (commencement of operations) and 10 shares sold for a total of $100 during
the six months ended June 30, 1997.  At June 30, 1997, 400,000 shares of
   the total 400,010 outstanding shares of the Fund were beneficially owned by
clients of Dresdner Bank AG/Investment Management/Institutional Asset   
Management Division.                                                    

4.  PURCHASES AND SALES OF SECURITIES                                           

 For the six months ended June 30, 1997, purchases and sales of investment
securities by the Fund, other than U.S. government obligations and      
  short-term securities, aggregated $4,227,118 and $2,806,205, respectively.
During the same period, short-term sales/maturities of U.S. government  
obligations aggregated $3,998,761, and there were no purchases of U.S.  
 government obligations by the Fund.  At June 30, 1997, the aggregate cost
of investments was the same for book and federal income tax purposes.   

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     RCM GLOBAL SMALL CAP FUND
     NOTES TO FINANCIAL STATEMENTS
     JUNE 30, 1997
     (UNAUDITED)

5.  DEFERRED ORGANIZATIONAL COSTS                                               

 Costs incurred by the Fund in connection with its organization aggregated
 $10,000.  These costs are being amortized on a straight-line basis over a
five-year period beginning at the commencement of the Fund's operations.

6.  TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES                            

 RCM Capital Management, L.L.C. ("RCM") manages the Fund's investments and
 provides various administrative services, subject to the authority of the
Board of Directors.  The Fund pays investment management fees monthly to
  RCM at an annualized rate of 1.25% of the Fund's average daily net assets.
For the six months ended June 30, 1997, the Fund recorded investment    
management fees of $25,132.                                             

RCM has voluntarily agreed, until at least December 31, 1997, to pay the
Fund on a quarterly basis the amount, if any, by which the ordinary     
  operating expenses of the Company attributable to the Fund for the quarter
  (except interest, taxes, and extraordinary expenses) exceed the annualized
   rate of 2.50% of the value of the average daily net assets of the Fund.  In
  subsequent years, the Fund will reimburse RCM for any such payments to the
  extent that the Fund's operating expenses are otherwise below this expense
cap.  RCM recorded reimbursement of Fund operating expenses totaling    
$26,344 for the six months ended June 30, 1997.                         

 Funds Distributor, Inc. (the "Distributor") acts as distributor of shares
   of the Fund.  The Distributor retains a portion of any initial sales charge
upon the purchase of shares of the Fund.  The Company has adopted a     
   distribution plan pursuant to Rule 12b-1 under the 1940 Act with respect to
the Fund.  Under the distribution plan, which is a "reimbursement plan,"
the Fund pays the Distributor an annual fee of up to 0.30% of the Fund's
average daily net assets as reimbursement for certain expenses actually 
incurred by the Distributor in connection with distribution of shares of
 the Fund. For the six months ended June 30, 1997, the Fund did not record
any 12b-1 fees.                                                         

7.  DIRECTORS' FEES                                                             

  Each Director who is not an interested person of the Company receives from
 the Company an annual retainer of $1,000 (the retainer is evenly prorated
  among each series of the Company), plus $500 for each meeting of the Board
attended and $250 for each committee meeting attended.                  

     Page 15

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INVESTMENT MANAGER                                                              

RCM Capital Management, L.L.C.                                                  
Four Embarcadero Center                                                         
San Francisco, California  94111                                                

TRANSFER AND REDEMPTION AGENT                                                   

State Street Bank and Trust Company                                             
1776 Heritage Drive                                                             
North Quincy, Massachusetts  02171                                              

DISTRIBUTOR                                                                     

Funds Distributor, Inc.                                                         
60 State Street, Suite 1300                                                     
Boston, Massachusetts  02109                                                    

CUSTODIAN                                                                       

State Street Bank and Trust Company                                             
1776 Heritage Drive                                                             
North Quincy, Massachusetts  02171                                              

LEGAL COUNSEL                                                                   

Paul, Hastings, Janofsky & Walker LLP                                           
555 South Flower Street                                                         
Los Angeles, California 90071                                                   

INDEPENDENT ACCOUNTANTS                                                         

Coopers & Lybrand L.L.P.                                                        
One Post Office Square                                                          
Boston, Massachusetts  02109                                                    

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘N-30D’ Filing		Date		First		Last			Other Filings
		12/31/97		16					24F-2NT,  485BPOS,  497,  N-30D,  NSAR-B
Filed on:		8/28/97							N-30D
For Period End:		6/30/97		1		16			485BPOS,  N-30D,  NSAR-A,  NSAR-A/A
		12/31/96		4		15			24F-2NT,  N-30D,  NSAR-B
		9/1/95		13
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