Shares of Scudder U.S. Treasury Money Fund are not insured or guaranteed by
the U.S. government. The 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 U.S. Treasury Money Fund
Semiannual Report
December 31, 1994
* A fixed-price money market fund investing in short-term U.S.
government securities. For investors seeking current income plus
liquidity and stability of capital.
* A pure no-load(tm) fund with no commissions to buy, sell, or exchange
shares.
SCUDDER U.S. TREASURY 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
9 Financial Statements
12 Financial Highlights
13 Notes to Financial Statements
16 Tax Information
17 Officers and Trustees
18 Investment Products and Services
19 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 global 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 price 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 U.S. Treasury Money Fund
provided a 7-day effective yield of 5.01%, compared to 2.63% 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. 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 will most
likely 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 19
provides more information on how to contact Scudder. Thank you for choosing
Scudder U.S. Treasury Money Fund to help meet your investment needs.
Sincerely,
/s/David S. Lee
David S. Lee
President,
Scudder U.S. Treasury Money Fund
<PAGE>
SCUDDER U.S. TREASURY MONEY FUND
PORTFOLIO MANAGEMENT DISCUSSION
Dear Shareholders,
The second half of 1994 remained friendly to money market investors.
Interest rates continued to climb - albeit less dramatically than during
the year's first half, and shareholders again saw Scudder U.S. Treasury
Money Fund's income distributions rise. In addition, the portfolio
maintained a constant share price of $1.00, consistent with our goal of
price stability.
On December 31, 1994, the Fund's 7-day yield was 4.89%. Factoring in
the effect of compounding, the 7-day effective yield was 5.01%, up from
3.43% six months ago and 2.63% a year ago. The Fund's total return, which
reflects reinvested distributions of $.02 per share, was 2.06% for the six-
month period ended December 31, 1994. Of course, past performance is no
guarantee of future results, and the Fund's yield may fluctuate.
Investment Environment Continued to Favor Money Market Investments
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 U.S.
Treasury 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
ensure price stability and higher yields. 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. To help
achieve this goal, the Fund invests primarily in U.S. Treasury money market
securities, which are guaranteed by the U.S. government. Limiting its
investments to these securities affords the Fund an added layer of credit
protection even above that of high-quality money market funds investing in
other types of money market instruments, such as commercial paper. As an
added benefit, income from U.S. Treasury securities can be exempt from
state and local taxes, though not from federal taxes.
(LINE CHART TITLE) Short-Term Interest Rates Climb
(December 1993 through December 1994)
(CHART DATA)
<TABLE>
<CAPTION>
Federal Funds 3-Month Treasury Bill
------------- ---------------------
<C> <C>
2.96 3.08
3.34 3.52
4.25 4.18
4.73 4.64
5.45 5.64
</TABLE>
(CALLOUT NEXT TO CHART) - Reflecting the continued rise in short-term
interest rates, your Fund's yield rose to 5.01% from 3.43% in the last half
of 1994.
Portfolio Strategy Takes Advantage of Rising Interest Rates
We continued to emphasize shorter average maturities during the six
months ended December 31, anticipating that upward pressure on interest
rates would persist. At the end of the year, the average maturity of the
portfolio stood at 46 days, near its 35-day average six months ago, but in
sharp contrast to its 73-day average a year ago. By holding shorter-
maturity money market securities as rates rise, your Fund can quickly
deploy proceeds from maturing investments to higher-yielding instruments.
In addition to U.S. Treasury bills and notes, your Fund also invested
in repurchase agreements. Repurchase agreements are short-term loans
typically collateralized by U.S. Government securities and tend to provide
a yield advantage over Treasuries with comparable maturities. In keeping
with our high quality standards, the Fund invested in only those repurchase
agreements that are collateralized by U.S. Treasury securities. Holdings of
repurchase agreements helped vary the Fund's mix of investments and
provided additional liquidity because they carried overnight maturities. In
all, the Fund's holdings - AAA-rated by Standard & Poor's, an independent
rating service - are among the highest quality investments available.
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 will prompt us to begin lengthening
maturities to maintain a high relative yield.
Thank you for your continued interest in Scudder U.S. Treasury Money
Fund.
Sincerely,
Your Portfolio Management Team
/s/Robert T. Neff /s/Jeanette A. Kelly
Robert T. Neff Jeanette A. Kelly
/s/Robert E. Pruyne /s/Stephen L. Akers
Robert E. Pruyne Stephen L. Akers
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO as of December 31, 1994 (Unaudited)
- - - - --------------------------------------------------------------------------------------------------
<CAPTION>
% of Principal Value ($)
Portfolio Amount ($) (Note A)
- - - - --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
----------------------------------------------------------------------------------
36.5% REPURCHASE AGREEMENTS
----------------------------------------------------------------------------------
50,000,000 Repurchase Agreement with Donaldson
Lufkin & Jenrette Securities Corp.,
dated 12/30/94 at 5.875%, to be
repurchased at $50,032,639 on 1/3/95,
collateralized by a $49,678,000
U.S. Treasury Note, 4.25%, 1/31/95 . . . . . . . . . 50,000,000
40,000,000 Repurchase Agreement with First National
Bank of Chicago, dated 12/30/94
at 6.1%, to be repurchased at $40,027,111
on 1/3/95, collateralized by a $39,065,000
U.S. Treasury Note, 8.875%, 11/15/98 . . . . . . . . 40,000,000
50,000,000 Repurchase Agreement with Harris-Nesbitt
Thomson Securities Inc., dated 12/27/94
at 5.75%, to be repurchased at $50,055,903
on 1/3/95, collateralized by a $45,000,000
U.S. Treasury Bond, 8.875%, 2/15/19 . . . . . . . . 50,000,000
4,128,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 12/30/94
at 5.5%, to be repurchased at $4,130,523
on 1/3/95, collateralized by a $4,175,000
U.S. Treasury Note, 6%, 6/30/96 . . . . . . . . . . 4,128,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $144,128,000) . . . . . . . . . . . . . . . . 144,128,000
-----------
----------------------------------------------------------------------------------
63.5% U.S. TREASURY OBLIGATIONS
----------------------------------------------------------------------------------
40,000,000 U.S. Treasury Bill 4.89%, 1/5/95 . . . . . . . . . . . 39,972,832
35,000,000 U.S. Treasury Bill 4.922%, 1/19/95 . . . . . . . . . . 34,909,079
20,000,000 U.S. Treasury Bill 4.97%, 1/26/95 . . . . . . . . . . 19,930,972
30,000,000 U.S. Treasury Bill 4.727%, 2/23/95 . . . . . . . . . . 29,787,275
40,000,000 U.S. Treasury Bill 5.134%, 3/2/95 . . . . . . . . . . 39,652,000
20,000,000 U.S. Treasury Bill 5.513%, 4/6/95 . . . . . . . . . . 19,706,000
50,000,000 U.S. Treasury Bill 5.93%, 5/18/95 . . . . . . . . . . 48,863,500
5,000,000 U.S. Treasury Note 4.25%, 1/31/95 . . . . . . . . . . 4,994,054
5,000,000 U.S. Treasury Note 4.125%, 6/30/95 . . . . . . . . . . 4,941,400
5,000,000 U.S. Treasury Note 4.25%, 7/31/95 . . . . . . . . . . 4,928,100
3,000,000 U.S. Treasury Note 3.875%, 10/31/95 . . . . . . . . . 2,921,250
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $250,817,778) . . . . . . . . . . . . . . . . 250,606,462
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER U.S. TREASURY MONEY FUND
- - - - --------------------------------------------------------------------------------
------------------------------------------------------------------------------
<S> <C>
TOTAL INVESTMENT PORTFOLIO -- 100.0%
(Cost $394,945,778) (a) . . . . . . . 394,734,462
===========
<FN>
(a) The cost for federal income tax purposes was $394,945,778. At December 31,
1994, net unrealized depreciation for all securities based on tax cost
was $211,316. This consisted of aggregate gross unrealized appreciation
for all securities in which there was an excess of market value over tax
cost of $62,809 and aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over market value of
$274,125.
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
- - - - -----------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1994 (UNAUDITED)
- - - - -----------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments, at value (including repurchase agreements
of $144,128,000) (identified cost $394,945,778)
(Note A). . . . . . . . . . . . . . . . . . . . . . . . $394,734,462
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,048,680
Receivables:
Interest . . . . . . . . . . . . . . . . . . . . . . . . 372,525
Fund shares sold . . . . . . . . . . . . . . . . . . . . 8,520,949
Other assets . . . . . . . . . . . . . . . . . . . . . . . 2,792
------------
Total assets . . . . . . . . . . . . . . . . . . . . 404,679,408
LIABILITIES
Payables:
Fund shares redeemed . . . . . . . . . . . . . . . . . . $2,888,429
Dividends . . . . . . . . . . . . . . . . . . . . . . . 152,410
Accrued management fee (Note B) . . . . . . . . . . . . 87,198
Other accrued expenses (Note B) . . . . . . . . . . . . 131,597
----------
Total liabilities . . . . . . . . . . . . . . . . . . 3,259,634
------------
Net assets, at value . . . . . . . . . . . . . . . . . . . $401,419,774
============
NET ASSETS
Net assets consist of:
Unrealized depreciation on investments . . . . . . . . . $ (211,316)
Shares of beneficial interest . . . . . . . . . . . . . 4,016,311
Additional paid-in capital . . . . . . . . . . . . . . . 397,614,779
------------
Net assets, at value . . . . . . . . . . . . . . . . . . . $401,419,774
============
NET ASSET VALUE, offering and redemption price per share
($401,419,774 -:- 401,631,090 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 U.S. TREASURY MONEY FUND
- - - - ----------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- - - - ----------------------------------------------------------------------------------
SIX MONTHS ENDED DECEMBER 31, 1994 (UNAUDITED)
- - - - ----------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest . . . . . . . . . . . . . . . . . . . . . . . . $8,992,424
Expenses:
Management fee (Note B) . . . . . . . . . . . . . . . . . $471,978
Services to shareholders (Note B) . . . . . . . . . . . . 539,378
Trustees' fees (Note B) . . . . . . . . . . . . . . . . . 12,232
Custodian and accounting fees (Note B) . . . . . . . . . 49,848
Reports to shareholders . . . . . . . . . . . . . . . . . 70,108
Legal . . . . . . . . . . . . . . . . . . . . . . . . . . 10,420
Auditing . . . . . . . . . . . . . . . . . . . . . . . . 16,251
State registration . . . . . . . . . . . . . . . . . . . 31,592
Other . . . . . . . . . . . . . . . . . . . . . . . . . . 40,337 1,242,144
----------------------
Net investment income . . . . . . . . . . . . . . . . . . 7,750,280
----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net realized gain from investment transactions. . . . . . 9,999
Net unrealized appreciation on investments
during the period . . . . . . . . . . . . . . . . . . 84,694
----------
Net gain on investments . . . . . . . . . . . . . . . . . 94,693
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS. . . $7,844,973
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
- - - - -------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- - - - -------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS
ENDED
DECEMBER 31, YEAR ENDED
1994 JUNE 30,
INCREASE (DECREASE) IN NET ASSETS (UNAUDITED) 1994
- - - - -------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income . . . . . . . . . . . . . $ 7,750,280 $ 8,820,765
Net realized gain from investment
transactions . . . . . . . . . . . . . . . . 9,999 7,413
Net unrealized appreciation (depreciation)
on investments during the period . . . . . . 84,694 (310,895)
------------- -------------
Net increase in net assets resulting from
operations . . . . . . . . . . . . . . . . . 7,844,973 8,517,283
------------- -------------
Distributions to shareholders:
From net investment income ($.020 and $.027
per share, respectively) . . . . . . . . . . (7,750,280) (8,820,765)
------------- -------------
From net realized gains from investment
transactions . . . . . . . . . . . . . . . . (9,999) (7,413)
------------- -------------
Fund share transactions at net asset value of
$1.00 per share:
Shares sold . . . . . . . . . . . . . . . . . . 335,032,910 733,931,354
Shares issued to shareholders in
reinvestment of distributions . . . . . . . 6,950,990 7,906,663
Shares redeemed . . . . . . . . . . . . . . . . (323,315,185) (664,132,582)
------------- -------------
Net increase in net assets from
Fund share transactions . . . . . . . . . . 18,668,715 77,705,435
------------- -------------
INCREASE IN NET ASSETS . . . . . . . . . . . . 18,753,409 77,394,540
Net assets at beginning of period . . . . . . . 382,666,365 305,271,825
------------- -------------
NET ASSETS AT END OF PERIOD . . . . . . . . . . $ 401,419,774 $ 382,666,365
============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER U.S. TREASURY 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>
Six Months
Ended
December 31, Years Ended June 30,
1994 -----------------------------------------------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
----------- ------------------------------------------------------------------------------------
<S> <C> <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 $1.000
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net investment
income . . . . . . . . .020 .027 .027 .044 .065 .075 .074 .055 .050 .064 .085
Less distributions
from net investment
income and net
realized gains on
investment
transactions (b) . . . (.020) (.027) (.027) (.044) (.065) (.075) (.074) (.055) (.050) (.064) (.085)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
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 $1.000
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (%) . . . . 2.06** 2.74 2.74 4.48 6.71 7.74 7.66 5.69 5.13 6.63 8.81
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end
of period
($ millions) . . . . . . 401 383 305 299 272 198 167 154 143 156 141
Ratio of operating
expenses, to
average daily net
assets (%) (a) . . . . . .65* .65 .65 .65 .82 .98 1.01 1.04 .92 .91 .86
Ratio of net
investment
income to
average daily
net assets (%) . . . . . 4.06* 2.75 2.69 4.31 6.37 7.46 7.41 5.54 4.95 6.39 8.46
(a) Operating
expense ratio,
including
management fee
not imposed by
the adviser (%). . . . . .90* .90 .85 .85 .91 -- -- -- -- -- --
<FN>
(b) Net realized capital gains were less than 6/10 of 1c. per share.
* Annualized
** Not annualized
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- - - - --------------------------------------------------------------------------------
A. SIGNIFICANT ACCOUNTING POLICIES
- - - - --------------------------------------------------------------------------------
Scudder U.S. Treasury 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. Portfolio securities which have remaining maturities of
sixty days or less are valued by the amortized cost method permitted in
accordance with Rule 2a-7 under the Investment Company Act of 1940. Portfolio
securities for which market quotations are readily available and which have
remaining maturities of sixty-one days or more from the date of valuation are
valued at the calculated mean between the over-the-counter bid and asked
prices, using quotations supplied by independent registered broker/dealers. On
the sixtieth day prior to maturity and thereafter until maturity, securities
originally purchased with more than sixty days remaining to maturity are valued
at amortized cost calculated daily, based upon the market valuation of the
securities on the sixty-first day prior to maturity. Other securities are
appraised at fair value as determined in good faith by or on behalf of the
Trustees of the Fund. Repurchase agreements are valued at identified cost
which, when combined with accrued interest receivable, approximates market.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
certain banks and broker/dealers whereby the Fund, through its custodian,
receives delivery of the underlying securities, the amount of which at the time
of purchase and each subsequent business day is required to be maintained at
such a level that the market value, depending on the maturity of the repurchase
agreement and the underlying collateral, is equal to at least 100.5% of the
resale price.
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 taxable income to its shareholders. The
Fund accordingly paid no federal income taxes and no provision for federal
income taxes was required.
<PAGE>
SCUDDER U.S. TREASURY MONEY FUND
- - - - --------------------------------------------------------------------------------
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
on 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.
The Fund uses the identified cost method for determining realized gain or loss
on investments for both financial and federal income tax reporting purposes.
OTHER. Investment security transactions are accounted for on a trade-date basis
(which in most instances, 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 "Management Agreement") with
Scudder, Stevens & Clark, Inc. (the "Adviser"), the Fund agrees to pay the
Adviser a fee equal to an annual rate of 0.50% of its average daily net assets
computed and accrued daily and payable monthly. As manager of the assets of the
Fund, 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 Management Agreement. The Agreement also 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. The Adviser has agreed not to impose all or a
portion of its management fee until April 30, 1995, and during such period to
maintain the annualized expenses of the Fund at not more than 0.65% of average
daily net assets. Accordingly, for the six months ended December 31, 1994, the
Adviser did not impose a portion of its fees amounting to $476,586, and the
portion imposed amounted to $471,978, of which $87,198 is unpaid at December
31, 1994.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- - - - --------------------------------------------------------------------------------
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 six months ended December 31, 1994, the amount charged to the Fund by
SSC aggregated $468,426, of which $82,271 is unpaid at December 31, 1994.
Effective August 1, 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 six months ended December 31, 1994, the
amount charged to the Fund by SFAC aggregated $20,559, of which $4,316 is
unpaid at December 31, 1994.
The Fund pays each Trustee not affiliated with the Adviser $4,000 annually plus
specified amounts for attended board and committee meetings. For the six months
ended December 31, 1994, Trustees' fees aggregated $12,232.
<PAGE>
SCUDDER U.S. TREASURY MONEY FUND
TAX INFORMATION
- - - - --------------------------------------------------------------------------------
By now shareholders to whom year-end tax reporting is required by the IRS
should have received their Form 1099-DIV and tax information letter from the
Fund. For corporate shareholders no amount of the income dividends paid by the
Fund qualified for the dividends received deduction.
In many states the amount of net investment income dividends you received which
are derived from direct obligations of the U.S. Government is exempt from your
state income taxes. Of the Fund's 1994 dividends from net investment income,
66.8% was derived from direct obligations of the U.S. Government.
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>
OFFICERS AND TRUSTEES
David S. Lee*
President and Trustee
Dawn-Marie Driscoll
Trustee; Attorney and Corporate Director
George M. Lovejoy, Jr.
Trustee; Chairman Emeritus of Meredith & Grew, Inc.
Jean C. Tempel
Trustee; Director and Executive Vice President, Safeguard
Scientifics, Inc.
Stephen L. Akers*
Vice President
Cuyler W. Findlay*
Vice President
Jerard K. Hartman*
Vice President
Thomas W. Joseph*
Vice President
Dudley H. Ladd*
Vice President
Thomas F. McDonough*
Vice President and Secretary
Pamela A. McGrath*
Vice President and Treasurer
Robert T. Neff*
Vice President
Edward J. O'Connell*
Vice President and Assistant Treasurer
Robert E. Pruyne*
Vice President
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.
