Shares of Scudder Tax Free Money Fund are not insured or guaranteed by the
U.S. Government. Scudder Tax Free Money Fund seeks to maintain a constant
net asset value of $1.00 per share, but there can be no assurance that the
stable net asset value will be maintained.
This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
Scudder Tax Free Money Fund
Annual Report
December 31, 1994
* A fixed-price money market fund offering opportunities for tax-free
income and stability of principal from high-quality, short-term
tax-exempt securities.
* A pure no-load(tm) fund with no commissions to buy, sell, or exchange
shares.
SCUDDER TAX FREE MONEY FUND
TABLE OF CONTENTS
3 Letter from the Fund's President
4 Portfolio Management Discussion
Your Fund's portfolio management team reviews the period's
investing strategies, financial markets, and economic conditions
7 Investment Portfolio
Itemized list of your Fund's portfolio holdings
13 Financial Statements
16 Financial Highlights
17 Notes to Financial Statements
20 Report of Independent Accountants
21 Tax Information
21 Officers and Trustees
22 Investment Products and Services
23 How to Contact Scudder
LETTER FROM THE FUND'S PRESIDENT
Dear Shareholders,
The world's financial markets were shaken repeatedly in 1994 by a
variety of events. Rising interest rates, losses for investors in highly
leveraged derivatives, municipal bankruptcy in California's Orange County,
and unsettling global developments combined to create a challenging
environment for global stock and bond investors. Not surprisingly, money
funds experienced substantial inflows this past year, as investors sought
to take shelter from the heightened market volatility of longer-term
financial instruments and capture higher yields.
The rise in interest rates in the past year has meant higher income
from fixed-income investments at a time when inflation has remained
relatively stable. As of December 31, Scudder Tax Free Money Fund provided
a federally tax-free 7-day effective yield of 4.22%, compared with 2.25% at
the start of the year. In the coming year, we expect a combination of
factors, including the Federal Reserve's tightening efforts, to keep global
economic activity and inflation on a moderate course in the U.S. and
abroad. Nevertheless, we expect some upward pressure to remain on interest
rates in 1995. Finite savings around the world has meant that capital to
invest in financial markets and growing economies increasingly is in short
supply. As a result, countries most likely will continue to compete for
much-needed global capital through higher rates of interest.
Additional rate increases may spark episodes of difficult adjustment
for financial markets and result in higher yields for money funds.
Regardless of the level of interest rates, however, money funds deserve a
place in most investment programs, either as the conservative foundation
for your overall portfolio or as a ready reserve to meet your needs for
cash.
If you have questions about your Fund or your investments, contact a
Scudder Investor Relations representative at 1-800-225-2470. Page 23
provides more information on how to contact Scudder. Thank you for choosing
Scudder Tax Free Money Fund to help meet your investment needs.
Sincerely,
/s/David S. Lee
David S. Lee
President,
Scudder Tax Free Money Fund
<PAGE>
SCUDDER TAX FREE MONEY FUND
PORTFOLIO MANAGEMENT DISCUSSION
Dear Shareholders,
The past 12 months have been generally friendly to money market
investors. Interest rates climbed dramatically, as the Federal Reserve
sought to slow the pace of economic growth through higher rates. And
shareholders saw the Scudder Tax Free Money Fund's income distributions
rise as a result. Meanwhile, the Fund maintained a constant share price of
$1.00, consistent with our goal of price stability.
On December 31, 1994, your Fund's 7-day net annualized yield was
4.14%. Factoring in the effect of compounding, the 7-day effective yield
was 4.22%, nearly double its 2.25% yield a year ago. For shareholders in
the 36% and 39.6% federal income tax brackets, the Fund's tax-free compound
yield translates into a taxable yield of 6.59% and 6.99%, respectively. The
Fund's total return, which reflects reinvested distributions of $0.022 per
share, was 2.26% for the 12 months ended December 31, 1994. Of course, past
performance is no guarantee of future results, and the Fund's yield will
fluctuate.
Rising Interest Rates Took Center Stage
Interest rates rose steadily throughout the year, increasing borrowing
costs for mortgages and credit cards and depressing bond prices, which move
in the opposite direction of interest rates. Though persistently higher
rates during 1994 resulted in a poor environment for bonds, Scudder Tax
Free Money Fund benefited from rising rates, since its yield rose while its
share price remained stable.
Money market fund inflows increased in 1994 as investors sought to
capture higher yields and price stability. Although money funds have a
stated goal of providing a constant $1.00 share price, shares of the funds
are not insured or guaranteed by the U.S. government and there can be no
assurance that the stable net asset value will be maintained. As always, we
strive to provide a stable share price so that shareholders can count on
money market funds to return their investment dollars in full whenever they
need them.
Favorable Supply/Demand Dynamics Boosted Performance
For much of the year, municipal bond prices were relatively strong
compared with other income investments, thanks in part to limited supply
and reasonably strong demand. The scanty supply of municipal securities in
1994 stands in stark contrast to the record high levels of the previous
year, which had been fueled by refinancing activity as interest rates fell.
Once rates began to rise and borrowing costs increased for new debt,
refinancing slowed. Moreover, many municipalities had already taken
advantage of the opportunity to refinance existing debt when rates were
low. Limited municipal supply in 1994 was even more pronounced due to
rising demand. Investors were drawn to municipals due in part to the higher
taxes that took effect in 1993, but also because of falling prices on other
types of investments. We believe municipal issuance in 1995 will continue
to be low, while demand remains steady at current levels.
Strategy Emphasizes Flexibility for Higher Yields and Stability
Through the course of the past year, the average maturity of the
Fund's holdings grew gradually shorter. At the start of the year, the Fund
focused on investments both at the longer and shorter ends of the money
market maturity spectrum. Longer-term money market holdings enabled the
Fund to capture higher yields relative to shorter-term holdings. And, in
the event that rates started to rise, shorter-term money market securities
provided the flexibility to quickly deploy proceeds from maturing
investments into higher-yielding instruments. As 1994 progressed, we leaned
more heavily toward shorter maturities, anticipating that upward pressure
on interest rates would persist. As of December 31, the average maturity of
the portfolio stood at 48 days, in contrast to its 65-day average a year
ago.
Throughout the year, the bulk of the portfolio has been devoted to
very liquid issues known as variable-rate demand notes. As the name
suggests, these securities feature fluctuating interest payments, which
reflect current interest-rate levels. As an added feature, investors can
recoup the full face value of an issue at all times. And because the rates
on these securities continually adjust to prevailing market rates, their
prices tend to be very steady.
As the year drew to a close, Orange County, California's bankruptcy
filing took the municipal security market by surprise. The County's
investment pool suffered heavy losses due to a high level of leveraging --
that is, buying large amounts of bonds and other securities with borrowed
money. Scudder Tax Free Money Fund, we are pleased to report, owned neither
direct nor indirect investments in the Orange County investment pool.
Looking ahead, we believe the Federal Reserve may push short-term
interest rates up a bit further if economic growth remains strong. As a
result, we intend to maintain our current strategy of favoring shorter-term
money market securities. While it is impossible to predict accurately when
interest rates will peak -- early in 1995 or later -- any evidence suggesting
that rates could be ready to decline may prompt us to lengthen maturities
to achieve a high relative yield.
Thank you for your continued interest in Scudder Tax Free Money Fund.
Sincerely,
Your Portfolio Management Team
/s/K. Sue Cote /s/Donald C. Carleton
K. Sue Cote Donald C. Carleton
Scudder Tax Free Money Fund: A Team Approach to Investing
Scudder Tax Free Money Fund is managed by a team of Scudder investment
professionals who each play an important role in the Fund's management
process. Team members work together to develop investment strategies and
select securities for the Fund. They are supported by Scudder's large staff
of economists, research analysts, traders, and other investment specialists
who work in our offices across the United States and abroad. Scudder
believes its team approach benefits Fund investors by bringing together
many disciplines and leveraging Scudder's extensive resources.
Lead Portfolio Manager K. Sue Cote assumed responsibility for the
Fund's investment strategy and operations in 1986 and has over 10 years of
experience in short-term tax-free investing. Sue, who joined Scudder in
1983, also is Lead Portfolio Manager of AARP High Quality Tax Free Money
Fund and a Portfolio Manager of Scudder California Tax Free and Scudder New
York Tax Free Money Funds. Donald C. Carleton, Portfolio Manager, has
worked on the Fund since 1986 and has 25 years of experience in tax-free
investing. Don also serves as Lead Portfolio Manager of Scudder Managed
Municipal Bonds, Scudder Medium Term Tax Free Fund, and AARP Insured Tax
Free General Bond Fund. He also is a Portfolio Manager of AARP High Quality
Tax Free Money Fund and Scudder California and New York Tax Free Funds.
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO as of December 31, 1994
- - - - - -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
---------
Principal Credit Value ($)
Amount ($) Rating (b) (Note A)
- - - - - -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
100.0% MUNICIPAL INVESTMENTS
ARIZONA Maricopa County, AZ, Industrial Development Authority,
Royal Oaks Sun City Project, Weekly Demand Note,
6.25%, 9/1/02* . . . . . . . . . . . . . . . . . . . . 300,000 MIG1 300,000
Pima County, AZ, Industrial Development Authority,
Tucson Electric Power Co., 1982 Series A,
Weekly Demand Note, 5.625%, 7/1/22* . . . . . . . . . 3,000,000 MIG1 3,000,000
Pinal County, AZ, Pollution Control Revenue,
Magma Copper, Series 1984, Daily Demand Note,
6.05%, 12/1/09* . . . . . . . . . . . . . . . . . . . 400,000 A1+ 400,000
Salt River Project, Agricultural Improvement and
Power District, AZ, Tax Exempt Commercial Paper,
4.35%, 1/10/95 . . . . . . . . . . . . . . . . . . . . 3,600,000 A1+ 3,600,000
CALIFORNIA California Revenue Anticipation Note, Series A,
5%, 6/28/95 . . . . . . . . . . . . . . . . . . . . . . 1,500,000 SP1+ 1,506,179
Lancaster, CA, Willows Project, Green Meadows,
1985 Series A, Weekly Demand Note,
6.125%, 2/1/05* . . . . . . . . . . . . . . . . . . . 8,650,000 A1 8,650,000
Los Angeles County, CA, Tax and Revenue
Anticipation Note:
4.5%, 6/30/95 . . . . . . . . . . . . . . . . . . . . 5,140,000 SP1+ 5,155,861
Unified School District, 4.5%, 7/10/95 . . . . . . . 2,000,000 SP1+ 2,009,038
Riverside, CA, Multi-Family Housing Revenue:
Countrywood Apartments, 1985 Series D,
Weekly Demand Note, 6.125%, 5/1/05* . . . . . . . . . 1,000,000 A1 1,000,000
Polk Apts, Weekly Demand Note, 6.125%, 12/1/05* . . . . . 2,000,000 A1 2,000,000
COLORADO Colorado State Certificate of Participation,
4.2%, 5/1/95 (c) . . . . . . . . . . . . . . . . . . . 2,250,000 AAA 2,252,145
Colorado Student Loan Obligation Bond Authority,
Weekly Demand Note, 1990 Series C,
5.05%, 9/1/99* . . . . . . . . . . . . . . . . . . . . 1,500,000 MIG1 1,500,000
Colorado Tax and Revenue Anticipation Note,
4.5%, 6/27/95 . . . . . . . . . . . . . . . . . . . . 2,725,000 MIG1 2,731,959
CONNECTICUT Connecticut General Obligation, Tender Option Bond,
Weekly Coupon Reset, 5.65%, 1/5/95 . . . . . . . . . . 2,000,000 MIG1 2,000,000
FLORIDA Broward County, FL, Housing Finance Authority,
Weekly Demand Note, Welleby Apartments Project,
5.7%, 12/1/06* . . . . . . . . . . . . . . . . . . . . 1,000,000 MIG1 1,000,000
Dade County, FL, Water and Sewer System Revenue
Bond, Series 1994, Weekly Demand Note,
4.95%, 10/5/22 (c)* . . . . . . . . . . . . . . . . . 2,000,000 A1+ 2,000,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER TAX FREE MONEY FUND
- - - - - -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
---------
Principal Credit Value ($)
Amount ($) Rating (b) (Note A)
- - - - - -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Florida Local Government Finance Authority,
Weekly Demand Note, 5.5%, 9/1/16* . . . . . . . . . . . 3,000,000 MIG1 3,000,000
Putnam County, FL, Pollution Control Revenue,
Seminole Electric Cooperative Finance Corp., 1984
Series H-2, Weekly Demand Note, 5.55%, 3/15/14* . . . 2,650,000 A1+ 2,650,000
GEORGIA Burke County, GA, Pollution Control Revenue,
Ogelthorpe Power, Weekly Demand Note,
4.95%, 1/1/19 (c)* . . . . . . . . . . . . . . . . . . 5,000,000 A1+ 5,000,000
DeKalb Private Hospital Authority, Egleston Children's
Hospital at Emory University, 1994 Series B, Weekly
Demand Note, 5.4%, 3/1/24* . . . . . . . . . . . . . . 5,000,000 A1+ 5,000,000
Dekalb County, GA, Wood Brook Project,1985
Series J, Weekly Demand Note, 5.7%, 8/1/07* . . . . . 2,000,000 MIG1 2,000,000
IDAHO Idaho Tax Anticipation Note, 4.5%, 6/29/95 . . . . . . . 2,000,000 SP1+ 2,006,422
ILLINOIS Illinois Development Finance Authority, Molex Inc.
Project, Series 1985, Weekly Demand Note,
5.7%, 7/1/05* . . . . . . . . . . . . . . . . . . . . . 1,000,000 NR 1,000,000
Illinois Educational Facilities Authority, University
Pooled Finance Program, Weekly Demand Note,
5.6%, 12/1/05 (c)* . . . . . . . . . . . . . . . . . . 4,810,000 A1 4,810,000
Illinois Health Facilities Authority:
Rush Presbyterian, Tax Exempt Commercial Paper:
4.35%, 1/10/95 . . . . . . . . . . . . . . . . . . . 1,000,000 MIG1 1,000,000
3.6%, 1/18/95 . . . . . . . . . . . . . . . . . . . . 2,000,000 A1+ 2,000,000
La Grange Memorial Health System, Series 1990,
Daily Demand Note, 6%, 12/1/16* . . . . . . . . . 1,000,000 MIG1 1,000,000
Skokie, IL, Fashion Square, Series 1984, Weekly
Demand Note, 6%, 12/1/14* . . . . . . . . . . . . . . 2,000,000 AA 2,000,000
INDIANA Indiana Bond Bank, Advanced Funding, 1994
Series A-2, 3.03%, 1/17/95 . . . . . . . . . . . . . . 2,000,000 SP1+ 2,000,238
IOWA Iowa School Corporation, 1994 Series A,
General Obligation, 4.25%, 7/17/95 . . . . . . . . . . 1,000,000 SP1+ 1,003,379
KENTUCKY Kentucky Development Finance Authority, Healthcare
System, Appalachian Regional Health Care,
Series 1991, Weekly Demand Note, 5.5%, 9/1/06* . . . . 1,300,000 MIG1 1,300,000
MAINE State of Maine, Series 1994, Tax Anticipation Notes,
4.5%, 6/30/95 . . . . . . . . . . . . . . . . . . . . . 5,000,000 SP1+ 5,017,260
MASSACHUSETTS Massachusetts Bay Transportation Authority,
1984 Series A, Optional Put, 3.75%, 3/1/14 . . . . . . 2,000,000 A1+ 2,000,000
Massachusetts General Obligation, 5.5%, 11/1/95 . . . . 2,000,000 NR 2,012,791
MICHIGAN Michigan Strategic Fund, Dow Chemical Project,
Tax Exempt Commercial Paper, 3.6%, 1/13/95 . . . . . . 1,500,000 P1 1,500,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- - - - - -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
---------
Principal Credit Value ($)
Amount ($) Rating (b) (Note A)
- - - - - -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MINNESOTA Cottage Grove, MN, Minnesota Mining and
Manufacturing, Series 1982, Weekly Demand Note,
5.5%, 8/1/12* . . . . . . . . . . . . . . . . . . . . . 1,100,000 A1+ 1,100,000
MISSISSIPPI Jackson County, MI, Chevron USA Project, Pollution
Control Revenue Bonds, Daily Demand Notes,
6.15%, 12/1/16* . . . . . . . . . . . . . . . . . . . . 3,255,000 P1 3,255,000
MISSOURI Missouri Health and Educational Facilities Authority,
Sisters of Mercy, Weekly Demand Note,
5.2%, 6/1/19* . . . . . . . . . . . . . . . . . . . . . 3,000,000 MIG1 3,000,000
Missouri State Environmental, Impact and Revenue
Resource Authority, Optional Put, 3.76%, 6/1/14 . . . . 5,000,000 A1+ 5,000,000
St. Charles County, MO, Industrial Development
Authority, Multi-Family Housing, Sun River
Apartments, Weekly Demand Note, 5.7%, 12/1/07* . . . . 3,000,000 MIG1 3,000,000
NEVADA Clark County, NV, Airport Improvement Revenue,
Weekly Demand Note, 4.95%, 7/1/12 (c)* . . . . . . . . 2,000,000 A1+ 2,000,000
NEW JERSEY New Jersey Turnpike Authority, Series D, Weekly
Demand Note, 4.65%, 1/1/18 (c)* . . . . . . . . . . . . 4,000,000 A1+ 4,000,000
Salem County, NJ, Industrial Pollution Control
Authority, E.I. du Pont de Nemours and Co.,
Floating Rate Demand Note, 3.75%, 3/1/12* . . . . . . 11,400,000 P1 11,400,000
NEW MEXICO Farmington, NM, Pollution Control Revenue,
Arizona Public Service, Four Corners Project, 1994
Series A, Daily Demand Note, 5.75%, 5/1/24* . . . . . . 1,400,000 A1+ 1,400,000
NEW YORK New York City Revenue Anticipation Notes, 1994
Series B, 4.75%, 6/30/95 . . . . . . . . . . . . . . . 2,000,000 SP1 2,006,158
New York City, NY, General Obligation, Series 1994 A,
4.5%, 4/12/95 . . . . . . . . . . . . . . . . . . . . 1,600,000 MIG1 1,603,292
NORTH CAROLINA North Carolina Eastern Municipal Power Agency,
Tax Exempt Commercial Paper, 1988 Series B,
3.85%, 2/24/95 . . . . . . . . . . . . . . . . . . . . 2,400,000 A1+ 2,400,000
North Carolina Medical Care Commission, Hospital
Revenue, Pooled Financing Project, 1986 Series A-2,
Weekly Demand Note, 5.55%, 7/1/26 (c)* . . . . . . . . 1,500,000 MIG1 1,500,000
NORTH DAKOTA Mercer County, ND, Pollution Control Revenue,
Cooperative Finance Corp., United Power, Weekly
Demand Note, 5.55%, 8/15/14* . . . . . . . . . . . . . 3,150,000 A1 3,150,000
OHIO Hamilton County, OH, Health Systems Revenue,
Franciscan Sisters of the Poor Health Systems,
Series A, Daily Demand Note, 6.05%, 3/1/17* . . . . . . 400,000 MIG1 400,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER TAX FREE MONEY FUND
- - - - - -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
---------
Principal Credit Value ($)
Amount ($) Rating (b) (Note A)
- - - - - -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
North Olmstead, OH, General Obligation,
Tax Anticipation Note:
4.2%, 6/22/95 . . . . . . . . . . . . . . . . . . . . 2,000,000 NR 2,002,714
4.55%, 7/20/95 . . . . . . . . . . . . . . . . . . . 2,000,000 NR 2,003,724
OREGON Klameth Falls, OR, Hydroelectric Facilities Authority,
Salt Caves Project, 1986 Series D, Mandatory Put,
3.75%, 5/1/95 . . . . . . . . . . . . . . . . . . . . . 1,500,000 SP1+ 1,500,000
PENNSYLVANIA Allegheny County, PA, Industrial Development Authority,
Lenmar Realty Project, Weekly Demand Note,
5.55%, 1/1/98* . . . . . . . . . . . . . . . . . . . . 1,110,000 MIG1 1,110,000
Bucks County, PA, Oxford Falls Plaza, Series 1984,
Weekly Demand Note, 5.75%, 10/1/14* . . . . . . . . . 9,000,000 MIG1 9,000,000
City of Philadelphia, PA, Tax and Revenue
Anticipation Notes, 4.75%, 6/15/95 . . . . . . . . . . 2,000,000 SP1 2,007,408
Elk County, PA, Stackpole Corporation, Series 1989,
Weekly Demand Note, 4.25%, 3/1/04* . . . . . . . . . . 1,000,000 NR 1,000,000
Emmaus, PA, General Authority, Local Government
Revenue Bond Pool Program,
Weekly Demand Note:
Series D-5, 5.65%, 3/1/24* . . . . . . . . . . . . 1,800,000 A1 1,800,000
Series D-6, 5.7%, 3/1/24* . . . . . . . . . . . . 800,000 A1 800,000
Series E, 5.65%, 3/1/24* . . . . . . . . . . . . 3,200,000 A1+ 3,200,000
Series G-3, 5.65%, 3/1/24* . . . . . . . . . . . . 9,950,000 A1+ 9,950,000
Series G-4, 5.7%, 3/1/24* . . . . . . . . . . . . 1,650,000 A1 1,650,000
Series H-2, 5.7%, 3/1/24* . . . . . . . . . . . . 1,200,000 A1 1,200,000
Series H-3, 5.7%, 3/1/24* . . . . . . . . . . . . 1,800,000 A1 1,800,000
Pennsylvania Tax Anticipation Notes, 4.75%, 6/30/95 . . 2,500,000 SP1+ 2,509,587
Philadelphia, PA School District, Tax and Revenue
Anticipation Notes, 4.75%, 6/30/95 . . . . . . . . . . 3,000,000 SP1+ 3,008,993
TENNESSEE Clarksville, TN, Series 1990, Weekly Demand Note,
4.9%, 7/1/13 (c)* . . . . . . . . . . . . . . . . . . . 2,000,000 MIG1 2,000,000
Franklin Industrial Development Revenue, Franklin
Oaks Apartments, Weekly Demand Note,
6%, 12/1/07* . . . . . . . . . . . . . . . . . . . . . 3,500,000 MIG1 3,500,000
Tennessee General Obligation, Bond Anticipation Note,
Weekly Demand Note, 1993 Series B, 5.5%, 5/1/96* . . . 700,000 A1+ 700,000
Tennessee State Local Development, Bond
Anticipation Note, 4.5%, 6/1/95 . . . . . . . . . . . 7,000,000 SP1+ 7,020,614
TEXAS Camp County, TX, Industrial Development, Pollution
Control Revenue, Texas Oil & Gas Corp., Floating
Rate Demand Bond, 5.7%, 12/1/13* . . . . . . . . . . . 2,000,000 A1 2,000,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- - - - - -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
---------
Principal Credit Value ($)
Amount ($) Rating (b) (Note A)
- - - - - -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Harris County, TX, Health Facilities Development Corp.,
St. Luke's Episcopal Hospital, Daily Demand Note:
1985 Series B, 5.85%, 2/15/16* . . . . . . . . . . . . 2,000,000 A1+ 2,000,000
1985 Series C, 5.85%, 2/15/16* . . . . . . . . . . . . 6,700,000 A1+ 6,700,000
1985 Series D, 5.85%, 2/15/16* . . . . . . . . . . . . 2,850,000 A1+ 2,850,000
North Central Texas Health Facilities
Development Corp., Presbyterian Medical Center,
Daily Demand Note:
Series C, 5.95%, 12/1/15 (c)* . . . . . . . . . . . . . 2,200,000 A1+ 2,200,000
Series D, 5.95%, 12/1/15 (c)* . . . . . . . . . . . . . 4,900,000 A1+ 4,900,000
San Antonio, TX, Industrial Development Authority,
River Center Associates Project, Weekly Demand
Note, 5.5%, 12/1/12* . . . . . . . . . . . . . . . . . . 4,800,000 AA 4,800,000
State of Texas, Tax and Revenue Anticipation Notes,
5%, 8/31/95 . . . . . . . . . . . . . . . . . . . . . . 4,300,000 SP1+ 4,315,199
UTAH Intermountain Power Agency, UT, Refunding Revenue
Series I, Prerefunded Bond, 8.7%, 7/1/99 . . . . . . . . 1,715,000 AAA 1,775,080
Salt Lake City, UT, Pooled Hospital Financing
Program, Tax Exempt Commercial Paper:
3.85%, 1/3/95 . . . . . . . . . . . . . . . . . . . . . 2,000,000 A1+ 2,000,000
4.35%, 1/10/95 . . . . . . . . . . . . . . . . . . . . 3,600,000 A1+ 3,600,000
Utah State Housing, Single Family Mortgage, Weekly
Demand Note, 5.7%, 7/1/16* . . . . . . . . . . . . . . . 2,000,000 SP1+ 2,000,000
VIRGINIA Louisa County, VA, Pollution Control Revenue,
Virginia Electric Power Company, Tax Exempt
Commercial Paper, 3.8%, 3/10/95 . . . . . . . . . . . . . 1,000,000 MIG1 1,000,000
WASHINGTON Washington General Obligation, Various Purpose,
Series B-2, Tender Option Bond, Weekly Coupon
Reset, 5.75%, 1/4/95 . . . . . . . . . . . . . . . . . . 5,000,000 A1+ 5,000,000
Washington Health Care Facilities Authority,
Daily Demand Note:
Fred Hutchinson Cancer Research Center:
Series A, 6%, 1/1/18* . . . . . . . . . . . . . . . . 2,315,000 MIG1 2,315,000
Series B, 6%, 1/1/18* . . . . . . . . . . . . . . . . 2,200,000 MIG1 2,200,000
Sisters of Providence:
1985 Series C, 6%, 10/1/05* . . . . . . . . . . . . . 1,000,000 A1+ 1,000,000
1985 Series E, 6%, 10/1/05* . . . . . . . . . . . . . 1,500,000 A1+ 1,500,000
Washington State Public Power Supply Authority,
Weekly Demand Note, 5.5%, 7/1/17* . . . . . . . . . . . 5,000,000 A1 5,000,000
WISCONSIN Wausau, WI, Pollution Control Revenue,
Minnesota Mining and Manufacturing,
Floating Rate Demand Note:
Series 1982, 5.5%, 8/1/17* . . . . . . . . . . . . . . 2,300,000 A1+ 2,300,000
Series 1983, 5.5%, 12/1/01* . . . . . . . . . . . . . . 800,000 AAA 800,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER TAX FREE MONEY FUND
- - - - - -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
---------
Principal Credit Value ($)
Amount ($) Rating (b) (Note A)
- - - - - -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Wisconsin Health Facilities Authority, Franciscan
Memorial Hospital, Weekly Demand Note,
5.4%, 1/1/16* . . . . . . . . . . . . . . . . . . . . . 900,000 A1+ 900,000
-----------
TOTAL INVESTMENT PORTFOLIO -- 100.0%
(Cost $249,538,041) (a) . . . . . . . . . . . . . . . . 249,538,041
===========
</TABLE>
(a) The cost for federal income tax purposes was
$249,869,104. At December 31, 1994, net unrealized
depreciation for all securities was $331,063. This
consisted of aggregate gross unrealized depreciation
for all securities in which there was an excess of tax
cost over market value of $331,063.
(b) All of the securities held have been determined to be
of appropriate credit quality as required by the
Fund's investment objectives. Credit ratings shown are
assigned by either Standard & Poor's Ratings Group,
Moody's Investors Service, Inc. or Fitch Investors
Service, Inc. Unrated securities (NR) have been
determined to be of comparable quality to rated
eligible securities.
(c) Bond is insured by one of these companies: AMBAC,
FGIC and MBIA.
* Floating rate and monthly, weekly, or daily demand
notes are securities whose yields vary with a
designated market index or market rate, such as the
coupon-equivalent of the Treasury Bill rate. Variable
rate demand notes are securities whose yields are
periodically reset at levels that are generally
comparable to tax-exempt commercial paper. These
securities are payable on demand within seven calendar
days and normally incorporate an irrevocable letter of
credit or line of credit from a major bank. These
notes are carried, for purposes of calculating average
weighted maturity, at the longer of the period
remaining until the next rate change or to the extent
of the demand period.
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
- - - - - ----------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1994
- - - - - ----------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments, at value (amortized cost $249,538,041)
(Note A). . . . . . . . . . . . . . . . . . . . . . . . . . . $249,538,041
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,168,624
Receivables:
Fund shares sold. . . . . . . . . . . . . . . . . . . . . . . 4,053,132
Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . 2,199,478
Investments sold. . . . . . . . . . . . . . . . . . . . . . . 2,060,000
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . 6,533
------------
Total assets. . . . . . . . . . . . . . . . . . . . . . . . 266,025,808
LIABILITIES
Payables:
Fund shares redeemed . . . . . . . . . . . . . . . . . . . . $9,020,791
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . 68,544
Accrued management fee (Note B) . . . . . . . . . . . . . . . 108,047
Other accrued expenses (Note B) . . . . . . . . . . . . . . . 54,278
----------
Total liabilities . . . . . . . . . . . . . . . . . . . . . 9,251,660
------------
Net assets, at value . . . . . . . . . . . . . . . . . . . . . $256,774,148
NET ASSETS ============
Net assets consist of:
Accumulated net realized loss . . . . . . . . . . . . . . . . $ (146,017)
Shares of beneficial interest . . . . . . . . . . . . . . . . 2,566,024
Additional paid-in capital . . . . . . . . . . . . . . . . . 254,354,141
------------
Net assets, at value . . . . . . . . . . . . . . . . . . . . . $256,774,148
NET ASSET VALUE, offering and redemption price per share ============
($256,774,148 -:-256,602,378 outstanding shares of
beneficial interest, $.01 par value, unlimited number
of shares authorized) . . . . . . . . . . . . . . . . . . . $1.00
=====
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER TAX FREE MONEY FUND
- - - - - ----------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1994
- - - - - ----------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,348,733
Expenses:
Management fee (Note B) . . . . . . . . . . . . . . . . . . . . $1,222,791
Services to shareholders (Note B) . . . . . . . . . . . . . . . 350,571
Trustees' fees (Note B) . . . . . . . . . . . . . . . . . . . . 36,168
Custodian and Accounting fees (Note B) . . . . . . . . . . . . 94,936
Reports to shareholders . . . . . . . . . . . . . . . . . . . . 40,985
Legal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,822
Auditing . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,926
State registration . . . . . . . . . . . . . . . . . . . . . . 56,386
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,042 1,871,627
---------------------------
Net Investment Income . . . . . . . . . . . . . . . . . . . . . 5,477,106
----------
NET REALIZED LOSS ON INVESTMENT TRANSACTIONS
Net realized loss from investments . . . . . . . . . . . . . . (13,237)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . $5,463,869
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
- - - - - ----------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- - - - - ----------------------------------------------------------------------------------------------
<CAPTION>
YEARS ENDED DECEMBER 31,
-----------------------------
INCREASE (DECREASE) IN NET ASSETS 1994 1993
- - - - - ----------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income . . . . . . . . . . . . . . . . . . . . . $ 5,477,106 $ 4,435,227
Net realized loss from investment
transactions. . . . . . . . . . . . . . . . . . . . . . . . . (13,237) (28,852)
------------ ------------
Net increase in net assets resulting from
operations . . . . . . . . . . . . . . . . . . . . . . . . . 5,463,869 4,406,375
------------ ------------
Distributions to shareholders from net
investment income ($.022 and $.018 per
share, respectively). . . . . . . . . . . . . . . . . . . . . (5,477,106) (4,435,227)
------------ ------------
Fund share transactions at net asset value of
$1.00 per share:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . 664,337,035 574,052,666
Shares issued to shareholders in
reinvestment of distributions . . . . . . . . . . . . . . . . 4,888,153 3,926,092
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . (634,890,811) (622,587,583)
------------ ------------
Net increase (decrease) in net assets from
Fund share transactions . . . . . . . . . . . . . . . . . . . 34,334,377 (44,608,825)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS . . . . . . . . . . . . . . . 34,321,140 (44,637,677)
Net assets at beginning of period . . . . . . . . . . . . . . . 222,453,008 267,090,685
------------ ------------
NET ASSETS AT END OF PERIOD . . . . . . . . . . . . . . . . . . $256,774,148 $222,453,008
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER TAX FREE MONEY FUND
FINANCIAL HIGHLIGHTS
- - - - - -------------------------------------------------------------------------------------------------------------------
THE FOLLOWING TABLE INCLUDES SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT
EACH PERIOD AND OTHER PERFORMANCE INFORMATION DERIVED FROM THE FINANCIAL
STATEMENTS.
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period . . . . . . . $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net investment
income . . . . . . . .022 .018 .025 .041 .053 .057 .046 .040 .041 .045
Less distributions
from net investment
income . . . . . . . (.022) (.018) (.025) (.041) (.053) (.057) (.046) (.040) (.041) (.045)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period . . . . $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (%) . . . 2.26 1.86 2.54 4.20 5.44 5.83 4.73 4.03 4.19 4.62
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end of
period ($ millions). . 257 222 267 279 303 279 358 390 383 265
Ratio of operating
expenses to
average daily net
assets (%) . . . . . .77 .75 .73 .70 .72 .70 .67 .66 .63 .63
Ratio of net
investment income
to average daily
net assets (%) . . . 2.24 1.84 2.53 4.12 5.30 5.67 4.61 4.03 4.01 4.54
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- - - - - -------------------------------------------------------------------------------
A. SIGNIFICANT ACCOUNTING POLICIES
- - - - - -------------------------------------------------------------------------------
Scudder Tax Free Money Fund (the "Fund") is organized as a Massachusetts
business trust and is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment company. The policies
described below are followed consistently by the Fund in the preparation of its
financial statements in conformity with generally accepted accounting
principles.
SECURITY VALUATION. The Fund values all portfolio securities utilizing the
amortized cost method permitted in accordance with Rule 2a-7 under the
Investment Company Act of 1940, as amended, and pursuant to which the Fund must
adhere to certain conditions. Under this method, which does not take into
account unrealized securities gains or losses, an instrument is initially
valued at its cost and thereafter assumes a constant accretion/amortization to
maturity of any discount/premium.
FEDERAL INCOME TAXES. The Fund's policy is to comply with the requirements of
the Internal Revenue Code which are applicable to regulated investment
companies and to distribute all of its income to its shareholders. The Fund
accordingly paid no federal income taxes and no provision for federal income
taxes was required.
As of December 31, 1994, the Fund had a net tax basis capital loss carryforward
of approximately $170,413, which may be applied against any realized net taxable
gains of each succeeding year until fully utilized or until December 31, 1995
($76,706), December 31, 1996 ($20,404), December 31, 2000 ($6,818), December 31,
2001 ($28,852), and December 31, 2002 ($37,633), the respective expiration
dates, whichever occurs first.
DISTRIBUTION OF INCOME AND GAINS. All of the net investment income of the Fund
is declared as a dividend to shareholders of record as of twelve o'clock noon
each business day and is paid to shareholders monthly. During any particular
year, net realized gains from investment transactions, in excess of available
capital loss carryforwards, would be taxable to the Fund if not distributed
and, therefore, will be distributed to shareholders. An additional distribution
may be made to the extent necessary to avoid the payment of a four percent
federal excise tax.
<PAGE>
SCUDDER TAX FREE MONEY FUND
- - - - - -------------------------------------------------------------------------------
The Fund uses the specific identification method for determining realized gain
or loss on investments for both financial and federal income tax reporting
purposes.
OTHER. Investment transactions are accounted for on a trade date basis (which
in most cases is the same as the settlement date). Interest income is accrued
pro rata to maturity. All premiums and discounts are amortized/accreted for
both tax and financial reporting purposes.
B. RELATED PARTIES
- - - - - -------------------------------------------------------------------------------
Under the Investment Management Agreement (the "Agreement") with Scudder,
Stevens & Clark, Inc. (the "Adviser"), the Adviser directs the investments of
the Fund in accordance with its investment objectives, policies, and
restrictions. The Adviser determines the securities, instruments, and other
contracts relating to investments to be purchased, sold or entered into by the
Fund. In addition to portfolio management services, the Adviser provides
certain administrative services in accordance with the Agreement. The
management fee payable under the Agreement is equal to an annual rate of 0.50%
on the first $500,000,000 of average daily net assets, and 0.48% of such net
assets in excess of $500,000,000, computed and accrued daily and payable
monthly. The Agreement provides that if the Fund's expenses, exclusive of
taxes, interest, and extraordinary expenses, exceed specified limits, such
excess, up to the amount of the management fee, will be paid by the Adviser.
For the year ended December 31, 1994, the management fee pursuant to the
Agreement aggregated $1,222,791, which was equivalent to an annual effective
rate of 0.50% of the Fund's average daily net assets.
Scudder Service Corporation ("SSC"), a wholly-owned subsidiary of the Adviser,
is the transfer, dividend paying and shareholder service agent for the Fund.
For the year ended December 31, 1994, the amount charged to the Fund by SSC
aggregated $268,759, of which $22,023 is unpaid at December 31, 1994.
Effective September 27, 1994, Scudder Fund Accounting Corporation ("SFAC"), a
wholly-owned subsidiary of the Adviser, assumed responsibility for determining
the daily net asset value per share and maintaining the portfolio and general
accounting records of the Fund. For the period September 27, 1994 to December
31, 1994, the amount charged to the Fund by SFAC aggregated $13,449, of which
$4,117 is unpaid at December 31, 1994.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- - - - - -------------------------------------------------------------------------------
The Fund pays each Trustee not affiliated with the Adviser $4,000 annually plus
specified amounts for attended board and committee meetings. For the year ended
December 31, 1994, Trustees' fees and expenses aggregated $36,168.
<PAGE>
SCUDDER TAX FREE MONEY FUND
REPORT OF INDEPENDENT ACCOUNTANTS
- - - - - -------------------------------------------------------------------------------
TO THE TRUSTEES AND SHAREHOLDERS OF THE SCUDDER TAX FREE MONEY FUND:
We have audited the accompanying statement of assets and liabilities of Scudder
Tax Free Money Fund, including the investment portfolio, as of December 31,
1994, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the ten years in the
period then ended. 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 securities owned as of
December 31, 1994 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
Scudder Tax Free Money Fund as of December 31, 1994, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each of
the ten years in the period then ended, in conformity with generally accepted
accounting principles.
Boston, Massachusetts COOPERS & LYBRAND L.L.P.
February 3, 1995
<PAGE>
TAX INFORMATION
- - - - - -------------------------------------------------------------------------------
By now shareholders should have received their year-end statement and tax
information letter from the Fund.
Of the dividends paid by the Scudder Tax Free Money Fund from net investment
income for the taxable year ended December 31, 1994, 100% were exempt interest
dividends which are tax exempt for purposes of regular federal income tax, and
for purposes of the federal alternative minimum tax.
Please consult a tax adviser if you have questions about federal or state
income tax laws, or on how to prepare your tax returns. If you have specific
questions about your Scudder Fund account, please call a Scudder Service
Representative at 1-800-225-5163.
<PAGE>
TAX INFORMATION
By now shareholders should have received their year-end statement and tax
information letter from the Fund.
Of the dividends paid by the Scudder Tax Free Money Fund from net
investment income for the taxable year ended December 31, 1994, 100% were
exempt interest dividends which are tax exempt for purposes of regular
federal income tax, and for purposes of the federal alternative minimum
tax.
Please consult a tax adviser if you have questions about federal or state
income tax laws, or on how to prepare your tax returns. If you have
specific questions about your Scudder Fund account, please call a Scudder
Service Representative at 1-800-225-5163.
OFFICERS AND TRUSTEES
David S. Lee*
President and Trustee
Dawn-Marie Driscoll
Trustee; Attorney and Corporate Director
Peter B. Freeman
Trustee; Corporate Director and Trustee
George M. Lovejoy, Jr.
Trustee; Chairman Emeritus, Meredith & Grew, Incorporated
Juris Padegs*
Vice President and Trustee
Jean C. Tempel
Trustee; Director and Executive Vice President, Safeguard Scientifics,
Inc.
Donald C. Carleton*
Vice President
Jerard K. Hartman*
Vice President
Thomas W. Joseph*
Vice President
Thomas F. McDonough*
Vice President and Secretary
Pamela A. McGrath*
Vice President and Treasurer
Edward J. O'Connell*
Vice President and Assistant Treasurer
Coleen Downs Dinneen*
Assistant Secretary
* Scudder, Stevens & Clark, Inc.
INVESTMENT PRODUCTS AND SERVICES
The Scudder Family of Funds
Money market
Scudder Cash Investment Trust
Scudder U.S. Treasury Money Fund
Tax free money market+
Scudder Tax Free Money Fund
Scudder California Tax Free Money Fund*
Scudder New York Tax Free Money Fund*
Tax free+
Scudder California Tax Free Fund*
Scudder High Yield Tax Free Fund
Scudder Limited Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder Massachusetts Limited Term Tax Free Fund*
Scudder Massachusetts Tax Free Fund*
Scudder Medium Term Tax Free Fund
Scudder New York Tax Free Fund*
Scudder Ohio Tax Free Fund*
Scudder Pennsylvania Tax Free Fund*
Growth and Income
Scudder Balanced Fund
Scudder Growth and Income Fund
Income
Scudder Emerging Markets Income Fund
Scudder GNMA Fund
Scudder Income Fund
Scudder International Bond Fund
Scudder Short Term Bond Fund
Scudder Short Term Global Income Fund
Scudder Zero Coupon 2000 Fund
Growth
Scudder Capital Growth Fund
Scudder Development Fund
Scudder Global Fund
Scudder Global Small Company Fund
Scudder Gold Fund
Scudder Greater Europe Growth Fund
Scudder International Fund
Scudder Latin America Fund
Scudder Pacific Opportunities Fund
Scudder Quality Growth Fund
Scudder Value Fund
The Japan Fund
Retirement Plans and Tax-Advantaged Investments
IRAs
Keogh Plans
Scudder Horizon Plan+++* (a variable annuity)
401(k) Plans
403(b) Plans
SEP-IRAs
Profit Sharing and Money Purchase Pension Plans
Closed-end Funds#
The Argentina Fund, Inc.
The Brazil Fund, Inc.
The First Iberian Fund, Inc.
The Korea Fund, Inc.
The Latin America Dollar Income Fund, Inc.
Montgomery Street Income Securities, Inc.
Scudder New Asia Fund, Inc.
Scudder New Europe Fund, Inc.
Scudder World Income Opportunities Fund, Inc.
Institutional Cash Management
Scudder Institutional Fund, Inc.
Scudder Fund, Inc.
Scudder Treasurers Trust(tm)++
For complete information on any of the above Scudder funds, including
management fees and expenses, call or write for a free prospectus. Read it
carefully before you invest or send money. +A portion of the income from
the tax-free funds may be subject to federal, state and local taxes. *Not
available in all states. +++A no-load variable annuity contract provided by
Charter National Life Insurance Company and its affiliate, offered by
Scudder's insurance agencies, 1-800-225-2470. #These funds, advised by
Scudder, Stevens & Clark, Inc., are traded on various stock exchanges.
++For information on Scudder Treasurers Trust(tm), an institutional cash
management service that utilizes certain portfolios of Scudder Fund, Inc.
($100,000 minimum), call: 1-800-541-7703.
HOW TO CONTACT SCUDDER
Account Service and Information
For existing account service and transactions
SCUDDER INVESTOR RELATIONS
1-800-225-5163
For account updates, prices, yields, exchanges and redemptions
SCUDDER AUTOMATED INFORMATION LINE (SAIL)
1-800-343-2890
Investment Information
To receive information about the Scudder funds, for additional
applications and prospectuses, or for investment questions
SCUDDER INVESTOR RELATIONS
1-800-225-2470
For establishing 401(k) and 403(b) plans
SCUDDER DEFINED CONTRIBUTION SERVICES
1-800-323-6105
Please address all correspondence to
THE SCUDDER FUNDS
P.O. BOX 2291
BOSTON, MASSACHUSETTS
02107-2291
Or stop by a Scudder Funds Center
Many shareholders enjoy the personal, one-on-one service of the
Scudder Funds Centers. Check for a Funds Center near you--they can be
found in the following cities:
Boca Raton
Boston
Chicago
Cincinnati
Los Angeles
New York
Portland, OR
San Diego
San Francisco
Scottsdale
For information on Scudder Treasurers Trust(tm), an institutional cash
management service for corporations, non-profit organizations and
trusts which utilizes certain portfolios of Scudder Fund, Inc.*
($100,000 minimum), call: 1-800-541-7703.
For information on Scudder Institutional Funds,* funds designed to
meet the broad investment management and service needs of banks and
other institutions, call: 1-800-854-8525.
Scudder Investor Relations and Scudder Funds Centers are services
provided through Scudder Investor Services, Inc., Distributor.
* Contact Scudder Investor Services, Inc., Distributor, to receive a
prospectus with more complete information, including management fees
and expenses. Please read it carefully before you invest or send
money.
Celebrating 75 Years of Serving Investors
Established in 1919 by Theodore Scudder, Sidney Stevens, and F. Haven
Clark, Scudder, Stevens & Clark was the first independent investment
counsel firm in the United States. Since its birth, Scudder's pioneering
spirit and commitment to professional long-term investment management have
helped shape the investment industry. In 1928, we introduced the nation's
first no-load mutual fund. Today we offer 36 pure no load(tm) funds,
including the first international mutual fund offered to U.S. investors.
Over the years, Scudder's global investment perspective and dedication
to research and fundamental investment disciplines have helped Scudder
become one of the largest and most respected investment managers in the
world. Though times have changed since our beginnings, we remain committed
to our longstanding principles: managing money with integrity and
distinction, keeping the interests of our clients first; providing access
to investments and markets that may not be easily available to individuals;
and making investing as simple and convenient as possible through friendly,
comprehensive service.
