Scudder U.S. Treasury Money Fund
Semiannual Report
December 31, 1996
Pure No-Load(TM) Funds
A 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.
<PAGE>
Table of Contents
2 In Brief
3 Letter from the Fund's President
4 Portfolio Management Discussion
6 Investment Portfolio
7 Financial Statements
10 Financial Highlights
11 Notes to Financial Statements
13 Officers and Trustees
14 Investment Products and Services
15 How to Contact Scudder
In Brief
o Scudder U.S. Treasury Money Fund provided a 4.34% 7-day net annualized
yield as of December 31, 1996.
o After the Federal Reserve declined to raise interest rates in September, we
increased the Fund's average maturity to capture higher yields.
o The Fund's total return for the six-month period was 2.28%, compared with
the 2.35% average return of the 97 U.S. Treasury money funds tracked by
Lipper Analytical Services.
2 - SCUDDER U.S. TREASURY MONEY FUND
<PAGE>
Letter From the Fund's President
Dear Shareholders,
We hope you enjoy our newly redesigned shareholder report. The new format
is designed to enhance the attractiveness and readability of the reports. Let us
know what you think.
This semiannual report for Scudder U.S. Treasury Money Fund covers a period
of strength for both the U.S. economy and financial markets. The economy has
been experiencing an expansion of record length, and while a mild recession
would not be a surprise this year, there are few reasons to question the
economy's long-term strength. While the markets will always surge and dip in
response to short-term indicators, we believe many long-term structural factors
such as deregulation, globalization, and technology are setting the stage for an
extended period of global economic growth without harmful levels of inflation.
Money market funds generally provided attractive returns during the
semiannual period for those investors seeking a stable share price and an
interest-paying alternative to cash. For the six months covered by this report,
Scudder U.S. Treasury Money Fund's total return was 2.28%, compared with the
2.35% average return of the 97 U.S. Treasury money funds tracked by Lipper
Analytical Services. Money funds consistently attracted assets, ending the year
at approximately $910 billion in total assets, according to IBC's Money Fund
Report.
I'd like to take this opportunity to introduce you to the new Lead
Portfolio Manager of Scudder U.S. Treasury Money Fund, David Wines. David joins
the management team with eight years of investment experience. Robert Neff, who
joined Scudder in 1972, has retired. We thank him for his many years of
outstanding service and wish him the best.
Finally, Scudder recently launched an innovative new product called Scudder
Pathway Series. Pathway Series is a collection of four distinct mutual fund
portfolios -- Conservative, Growth, Balanced, and International -- that offers
flexibility, diversification, and simplicity. Each portfolio invests in a select
mix of Scudder Funds designed to help achieve a specific investment objective.
For more information on this and other Scudder Fund products and services,
please turn to page 14. Should you have any questions about your Fund or
investments, please contact a Scudder Investor Relations representative at
1-800-225-2470, or access our Web site at http://funds.scudder.com.
Sincerely,
/s/David S. Lee
David S. Lee
President,
Scudder U.S. Treasury Money Fund
3 - SCUDDER U.S. TREASURY MONEY FUND
<PAGE>
Portfolio Management Discussion
Dear Shareholders,
The second half of 1996 provided money market investors with respectable
yields, although a much anticipated increase in short-term interest rates failed
to materialize. Scudder U.S. Treasury Money Fund provided a 4.34% 7-day net
annualized yield as of December 31, 1996, translating into 4.44% for the same
period with the reinvestment of dividends. The Fund's total return for the
semiannual period was 2.28%, compared with the 2.35% average return of the 97
U.S. Treasury money funds tracked by Lipper Analytical Services.
The Market Mood
1996 was a noteworthy year for U.S. stocks, with enthusiasm for bonds dimmed
considerably as a result. While stock market investing proved rewarding, with
the S&P 500 Index increasing almost 23% for the year, the ride was nothing less
than turbulent. During the six months covered by this report, stock returns were
on occasion hit hard by inflation fears arising from surprisingly strong
economic indicators. Bond returns for the year were generally mediocre, as
long-term rates ended the year higher, although fixed-income prices ratcheted
down somewhat over the last six months of 1996.
Money funds provided a haven for those uncomfortable with the market's
short-term gyrations, as well as for those who desired a convenient resting
place for their savings. During the six-month period, $82 billion flowed into
money funds overall, with industry-wide money fund assets reaching $910 billion
by the end of December.
Money managers spent much of the year with their eyes on the Federal Reserve,
anticipating a potential interest rate hike. As a result, many money funds
defensively shortened their average maturities. Once the Federal Reserve
declined to raise rates in September, sentiment shifted and money fund managers
began extending maturities to capture higher yields.
Locating Opportunities
Scudder U.S. Treasury Money Fund's average maturity hovered in the 40-45 day
range in September in anticipation of the Federal Reserve Board meeting. After
the meeting, we increased the Fund's average maturity. While the defensive
position prepared us for a rate increase, the tradeoff was the lost opportunity
to capture the superior yields offered by longer-maturity instruments. As of
December 31, the Fund's average maturity stood at 52 days.
At the close of the period, 97% of the Fund was invested in U.S. Treasury
obligations. These securities are backed by the U.S. government, providing the
Fund with a measure of safety beyond that offered by conventional money funds,
which already are considered among the most conservative of investments.
Moreover, the income generated by Treasury securities is exempt from both state
and local income taxes.
The small remainder of the Fund's assets was invested in repurchase agreements,
a form of short-term loan that typically provides liquidity and a yield
advantage over money market instruments with comparable maturities.
4 - SCUDDER U.S. TREASURY MONEY FUND
<PAGE>
The Coming Months
Absent any unforeseen shocks, 1997 should provide investors with moderate
economic growth, stable to higher stock prices, and stable to moderately lower
interest rates. While always a possibility, we don't expect the Federal Reserve
to lower interest rates any time soon.
In this environment, we plan to favor money market securities at the longer end
of the maturity spectrum in order to garner attractive yields. Our focus will
remain on quality as we select investments to maintain Scudder U.S. Treasury
Money Fund's stable share price and competitive yield. We believe Scudder U.S.
Treasury Money Fund remains an appropriate place for your short-term investment
needs.
Please call a Scudder representative at 1-800-225-2470 should you have any
questions about your Fund. Thank you for choosing Scudder U.S. Treasury Money
Fund.
Sincerely,
Your Portfolio Management Team
/s/David B. Wines /s/Stephen L. Akers
David B. Wines Stephen L. Akers
/s/Debra A. Hanson /s/K. Sue Cote
Debra A. Hanson K. Sue Cote
5 - SCUDDER U.S. TREASURY MONEY FUND
<PAGE>
Investment Portfolio as of December 31, 1996 (Unaudited)
Principal Value ($)
Amount ($) (Note A)
- --------------------------------------------------------------------------------
Repurchase Agreements 3.0%
- --------------------------------------------------------------------------------
Repurchase Agreement with Donaldson, Lufkin
& Jenrette dated 12/31/96 at 6.7%, to be
repurchased at $7,666,853 on 1/2/97,
collateralized by a $7,559,000 U.S. Treasury
Note, 7.375%, 11/15/97 ............................ 7,664,000 7,664,000
Repurchase Agreement with State Street Bank
and Trust Company dated 12/31/96 at 6.0%, to
be repurchased at $5,266,755 on 1/2/97,
collateralized by a $4,965,000 U.S.
Treasury Bond, 7.125%, 2/15/23 .................... 5,265,000 5,265,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $12,929,000) 12,929,000
- --------------------------------------------------------------------------------
U. S. Treasury Obligations 97.0%
- --------------------------------------------------------------------------------
U.S. Treasury Bill, 4.17%*, 1/2/97 ................. 15,000,000 14,996,528
U.S. Treasury Bill, 4.65%*, 1/9/97 ................. 90,000,000 89,895,607
U.S. Treasury Bill, 4.58%*, 1/16/97 ................ 45,000,000 44,908,535
U.S. Treasury Bill, 4.66%*, 1/23/97 ................ 50,000,000 49,851,707
U.S. Treasury Bill, 4.61%*, 1/30/97 ................ 20,000,000 19,923,476
U.S. Treasury Bill, 4.88%*, 2/6/97 ................. 60,000,000 59,700,300
U.S. Treasury Bill, 4.63%*, 2/13/97 ................ 30,000,000 29,831,212
U.S. Treasury Bill, 4.86%*, 3/6/97 ................. 10,000,000 9,913,000
U.S. Treasury Bill, 4.88%*, 3/13/97 ................ 15,000,000 14,855,100
U.S. Treasury Bill, 4.91%*, 4/17/97 ................ 25,000,000 24,640,500
U.S. Treasury Bill, 5.05%*, 4/24/97 ................ 20,000,000 19,685,200
U.S. Treasury Bill, 5.12%*, 5/22/97 ................ 10,000,000 9,802,100
U.S. Treasury Bill, 5.13%*, 5/29/97 ................ 10,000,000 9,792,200
U.S. Treasury Bill, 5.22%*, 7/24/97 ................ 5,000,000 4,855,650
U.S. Treasury Bill, 5.39%*, 10/16/97 ............... 19,000,000 18,212,260
- --------------------------------------------------------------------------------
Total U.S. Treasury Obligations (Cost $420,846,227) 420,863,375
- --------------------------------------------------------------------------------
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Total Investment Portfolio -- 100.0% (Cost $433,775,227)(a) 433,792,375
- --------------------------------------------------------------------------------
(a) The cost for federal income tax purposes was $433,775,227. At December 31,
1996, net unrealized appreciation for all securities based on tax cost was
$17,148. This consisted of aggregate gross unrealized appreciation for all
securities in which there was an excess of market value over tax cost of
$46,388 and aggregate gross unrealized depreciation for all securities in
which there was an excess of tax cost over market value of $29,240.
* Yield to maturity, not a coupon rate.
The accompanying notes are an integral part of the financial statements.
6 - SCUDDER U.S. TREASURY MONEY FUND
<PAGE>
Financial Statements
Statement of Assets and Liabilities
as of December 31, 1996 (Unaudited)
Assets
- --------------------------------------------------------------------------------
Investments, at value (identified
cost $433,775,227) (Note A) ........................ $433,792,375
Cash ................................................. 700,662
Receivable on Fund shares sold ....................... 6,996,047
Interest receivable .................................. 2,304
Other assets ......................................... 2,792
------------
Total assets ......................................... 441,494,180
Liabilities
- --------------------------------------------------------------------------------
Payable for Fund shares redeemed ..................... $ 5,597,721
Dividends payable .................................... 176,431
Accrued management fee (Note B) ...................... 39,428
Other accrued expenses (Note B) ...................... 217,046
------------
Total liabilities .................................... 6,030,626
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Net assets, at value $435,463,554
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Net Assets
- --------------------------------------------------------------------------------
Net assets consist of:
Net unrealized appreciation on investments ........... 17,148
Paid-in capital ...................................... 435,446,406
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Net assets, at value $435,463,554
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Net Asset Value
- --------------------------------------------------------------------------------
Net Asset Value, offering and redemption price
per share ($435,463,554 / 435,446,406 outstanding
shares of beneficial interest, $.01 par value, ------------
unlimited number of shares authorized) ............. $ 1.00
------------
The accompanying notes are an integral part of the financial statements.
7 - SCUDDER U.S. TREASURY MONEY FUND
<PAGE>
Statement of Operations
six months ended December 31, 1996 (Unaudited)
Investment Income
- --------------------------------------------------------------------------------
Interest ............................................ $ 10,658,849
------------
Expenses:
Management fee (Note B) ............................. $ 1,030,485
Services to shareholders (Note B) ................... 700,401
Custodian and accounting fees (Note B) .............. 53,578
Trustees' fees and expenses (Note B) ................ 13,212
Reports to shareholders ............................. 39,290
Registration fees ................................... 46,675
Auditing ............................................ 17,629
Legal ............................................... 10,931
Other ............................................... 9,762
------------
Total expenses before reductions .................... 1,921,963
Expense reductions (Note B) ......................... (571,908)
------------
Expenses, net ....................................... 1,350,055
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Net investment income 9,308,794
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Realized and unrealized gain (loss) on investment transactions
- --------------------------------------------------------------------------------
Net unrealized appreciation on investments
during the period ................................. 28,463
------------
Net gain on investments ............................. 28,463
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Net increase in net assets resulting from operations $ 9,337,257
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The accompanying notes are an integral part of the financial statements.
8 - SCUDDER U.S. TREASURY MONEY FUND
<PAGE>
Statements of Changes in Net Assets
Six Months
Ended
December
31, 1996 Year Ended
Increase (Decrease) in Net Assets (Unaudited) June 30, 1996
- --------------------------------------------------------------------------------
Operations:
Net investment income ................. $ 9,308,794 $ 18,888,366
Net realized gain from investment
transactions ........................ -- 2,458
Net unrealized appreciation
(depreciation) on investments during
the period .......................... 28,463 (136,004)
------------- -------------
Net increase in net assets resulting
from operations ..................... 9,337,257 18,754,820
Distributions to shareholders:
From net investment income ............ (9,308,794) (18,888,366)
------------- -------------
From net realized gains from investment
transactions ........................ (2,458) --
------------- -------------
Fund share transactions at net asset
value of $1.00 per share:
Shares sold ........................... 372,660,144 641,265,052
Shares issued to shareholders in
reinvestment distributions .......... 8,364,251 17,575,662
Shares redeemed ....................... (341,788,690) (645,982,556)
------------- -------------
Net increase in net assets from Fund
share transactions .................. 39,235,705 12,858,158
------------- -------------
Increase in net assets ................ 39,261,710 12,724,612
Net assets at beginning of period ..... 396,201,844 383,477,232
------------- -------------
Net assets at end of period ........... $ 435,463,554 $ 396,201,844
------------- -------------
The accompanying notes are an integral part of the financial statements.
9 - SCUDDER U.S. TREASURY MONEY FUND
<PAGE>
Financial Highlights
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
<TABLE>
<CAPTION>
Six Months
Ended
December
31, 1996 Years Ended June 30,
(Unaudited) 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
- -----------------------------------------------------------------------------------------------------------------------------------
<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 ........ .023 .048 .046 .027 .027 .044 .065 .075 .074 .055 .050
Less distributions from
net investment income
and net realized gains
on investment
transactions (a) .......... (.023) (.048) (.046) (.027) (.027) (.044) (.065) (.075) (.074) (.055) (.050)
---------------------------------------------------------------------------------------------------
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 $1.000
---------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return (%) ............. 2.28** 4.91 4.70 2.74 2.74 4.48 6.71 7.74 7.66 5.69 5.13
Ratios and Supplemental Data
Net assets, end of period
($ millions) .............. 435 396 383 383 305 299 272 198 167 154 143
Ratio of operating expenses,
net to average daily
net assets (%) ............ .65* .65 .65 .65 .65 .65 .82 .98 1.01 1.04 .92
Ratio of operating
expenses before expense
reductions, to average
daily net assets (%) ...... .93* .92 .90 .90 .85 .85 .91 -- -- -- --
Ratio of net investment
income to average net
assets (%) ................ 4.48* 4.80 4.61 2.75 2.69 4.31 6.37 7.46 7.41 5.54 4.95
</TABLE>
(a) Net realized capital gains were less than 6/10 of 1(cent) per share.
* Annualized
** Not annualized
10 - SCUDDER U.S. TREASURY MONEY FUND
<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 Fund's financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management estimates.
The policies described below are followed consistently by the Fund in the
preparation of its financial statements.
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, 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.
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.
11 - SCUDDER U.S. TREASURY MONEY FUND
<PAGE>
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 Management 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 October 31, 1997, 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, 1996, the
Adviser did not impose a portion of its fees amounting to $571,908, and the
portion imposed amounted to $458,577, of which $39,428 is unpaid at December 31,
1996.
Scudder Service Corporation ("SSC"), a subsidiary of the Adviser, is the
transfer, dividend paying and shareholder service agent for the Fund. For the
six months ended December 31, 1996, the amount charged to the Fund by SSC
aggregated $349,947, of which $59,369 is unpaid at December 31, 1996.
Scudder Trust Company ("STC"), a subsidiary of the Adviser, provides
recordkeeping and other services in connection with certain retirement and
employee benefit plans invested in the Fund. For the six months ended December
31, 1996, the amount charged to the Fund by STC aggregated $240,161, of which
$43,278 is unpaid at December 31, 1996.
Scudder Fund Accounting Corporation ("SFAC"), a subsidiary of the Adviser, is
responsible 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, 1996, the amount charged to the Fund by SFAC aggregated
$24,733, of which $4,191 is unpaid at December 31, 1996.
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, 1996, Trustees' fees and expenses aggregated $13,212.
12 - SCUDDER U.S. TREASURY MONEY FUND
<PAGE>
Officers and Trustees
David S. Lee*
President and Trustee
E. Michael Brown*
Trustee
Dawn-Marie Driscoll
Trustee; Attorney and Corporate Director
George M. Lovejoy, Jr.
Trustee; President and Director, Fifty Associates
Jean C. Tempel
Trustee; General Partner,
TL Ventures
Stephen L. Akers*
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
Edward J. O'Connell*
Vice President and Assistant Treasurer
David Wines*
Vice President
*Scudder, Stevens & Clark, Inc.
13 - SCUDDER U.S. TREASURY MONEY FUND
<PAGE>
Investment Products and Services
The Scudder Family of Funds+++
- --------------------------------------------------------------------------------
Money Market
- ------------
Scudder U.S. Treasury Money Fund
Scudder Cash Investment Trust
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 Limited Term Tax Free Fund
Scudder Medium Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder High Yield Tax Free Fund
Scudder California Tax Free Fund*
Scudder Massachusetts Limited Term Tax Free Fund*
Scudder Massachusetts Tax Free Fund*
Scudder New York Tax Free Fund*
Scudder Ohio Tax Free Fund*
Scudder Pennsylvania Tax Free Fund*
U. S. Income
- ------------
Scudder Short Term Bond Fund
Scudder Zero Coupon 2000 Fund
Scudder GNMA Fund
Scudder Income Fund
Scudder High Yield Bond Fund
Global Income
- -------------
Scudder Global Bond Fund
Scudder International Bond Fund
Scudder Emerging Markets Income Fund
U.S. Growth and Income
- ----------------------
Scudder Balanced Fund
Scudder Growth and Income Fund
U.S. Growth
- -----------
Value
Scudder Large Company Value Fund
Scudder Value Fund
Scudder Small Company Value Fund
Scudder Micro Cap Fund
Growth
Scudder Classic Growth Fund
Scudder Quality Growth Fund
Scudder Development Fund
Scudder 21st Century Growth Fund
Global Growth
- -------------
Worldwide
Scudder Global Fund
Scudder International Fund
Scudder Global Discovery Fund
Scudder Emerging Markets Growth Fund
Scudder Gold Fund
Regional
Scudder Greater Europe Growth Fund
Scudder Pacific Opportunities Fund
Scudder Latin America Fund
The Japan Fund
Asset Allocation
- ----------------
Scudder Pathway Conservative Portfolio
Scudder Pathway Balanced Portfolio
Scudder Pathway Growth Portfolio
Scudder Pathway International Portfolio
Retirement Programs
- -------------------
IRA
SEP IRA
SIMPLE IRA
Keogh Plan
401(k), 403(b) Plans
Scudder Horizon Plan *++++++(a variable annuity)
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.
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. +++Funds within categories are listed from expected
least to most risk. +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.
14 - SCUDDER U.S. TREASURY MONEY FUND
<PAGE>
How to Contact Scudder
Account Service and Information
- --------------------------------------------------------------------------------
For existing account services and transactions
Scudder Investor Relations -- 1-800-225-5163
For 24 hour account information, fund information, exchanges, and an
overview of all the services available to you
Scudder Electronic Account Services -- http://funds.scudder.com
For information about your Scudder accounts, exchanges and redemptions
Scudder Automated Information Line (SAIL) -- 1-800-343-2890
Investment Information
- --------------------------------------------------------------------------------
For information about the Scudder funds, including additional applications
and prospectuses, or for answers to investment questions
Scudder Investor Relations -- 1-800-225-247
[email protected]
Scudder's World Wide Web Site -- http://funds.scudder.com
For establishing 401(k) and 403(b) plans
Scudder Defined Contribution Services -- 1-800-323-6105
Scudder Brokerage Services
- --------------------------------------------------------------------------------
To receive information about this discount brokerage service and to obtain
an application
Scudder Brokerage Services* -- 1-800-700-0820
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 Chicago San Francisco
Boston New York
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.
* Scudder Brokerage Services, Inc., 42 Longwater Drive, Norwell, MA 02061 --
Member NASD/SIPC.
** 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.
15 - SCUDDER U.S. TREASURY MONEY FUND
<PAGE>
Celebrating Over 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 over 40 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 us 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 long-standing
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.
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
