Scudder
U.S. Treasury
Money Fund
Annual Report
June 30, 1997
Pure No-Load(TM) Funds
A money market fund investing in short-term U.S. government securities. For
investors seeking current income plus safety, liquidity and stability of
capital.
A pure no-load(TM) fund with no commissions to buy, sell, or exchange shares.
SCUDDER
(logo)
<PAGE>
Table of Contents
2 In Brief
3 Letter from the Fund's President
4 Portfolio Management Discussion
7 Investment Portfolio
8 Financial Statements
11 Financial Highlights
12 Notes to Financial Statements
14 Report of Independent Accountants
16 Officers and Trustees
17 Investment Products and Services
18 Scudder Solutions
In Brief
o Your Fund's investments in ultra short-term, high-quality securities
contributed to a total return of 4.58% for the year. The Fund's 30-day net
annualized yield at the end of June was 4.52%.
o The Fund recently adopted more flexible guidelines that allow it to average
out to 90 days in maturity and take advantage of the slightly higher yields on
longer-maturity investments in the money-market universe.
o As rates edged higher on evidence of stronger economic growth late last year,
we began to extend the Fund's average maturity. At the end of June, the Fund's
average maturity stood at 53 days.
2 - Scudder U.S. Treasury Money Fund
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Letter From the Fund's President
Dear Shareholders,
Throughout Scudder U.S. Treasury Money Fund's most recent fiscal year ended
June 30, 1997, inflation remained dormant, yet investors responded to strong
economic growth as if higher prices were just around the corner. At the end of
March, the Federal Reserve Board engineered a small increase in short-term
interest rates, taking aim at inflation before many economists were aware it was
underway. The anticipation of this event in the financial markets affected all
types of fixed-income investments. However, those most sensitive to changes in
the level of interest rates -- longer-maturity bonds -- were the hardest hit.
In contrast, your Fund's focus on the shortest-maturity and highest-quality
securities permitted the Fund's share price to remain impervious to market
volatility, in keeping with its objective of maintaining a stable $1.00 share
price. As the Fund's portfolio managers explain in the following letter, steps
were also taken during the period to boost the Fund's yield.
We would like to take this opportunity to introduce a newcomer to Scudder's
mutual fund lineup: Scudder International Growth and Income Fund. The Fund
employs a yield-oriented approach to international investing and seeks to
provide long-term growth of capital plus current income. Investors who desire
international exposure but who wish to take a relatively conservative approach
may appreciate the Fund's emphasis on the dividend paying stocks of
well-established companies outside the United States. For a complete listing of
Scudder's mutual fund offerings, see page 17.
Despite near-term uncertainty, we believe the global economic landscape
provides an excellent long-term backdrop for fixed-income investors. In the
report that follows, your Fund's managers discuss the events of the past year as
well as their outlook for fiscal year 1998. Thank you for choosing Scudder U.S.
Treasury Money Fund to help meet your investment needs. Please do not hesitate
to call Investor Relations at 1-800-225-2470 with any questions, or visit 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,
Over the course of your Fund's most recent fiscal year ended June 30, 1997,
investors continued to grapple with an interesting paradox: growth without
inflation. As the economy began its sixth year of uninterrupted growth,
economists and other market pundits strained to see rising prices behind each
new release of positive economic data. But inflation was nowhere in sight. The
economy heated up in earnest in late 1996 and went on to deliver 5.9% GDP growth
in the first quarter of 1997. Unemployment dropped to its lowest level since
1973, and investors widely anticipated March's increase in the federal funds
rate. After much interim volatility, fixed-income investments rallied in the
remaining weeks through June 30, as data began to suggest that growth in the
second quarter would be slower.
Your Fund's investments in ultra short-term, high-quality securities helped it
successfully navigate the changing tides of investor sentiment that proved
detrimental to longer-maturity bonds during the period. Scudder U.S. Treasury
Money Fund maintained its $1.00 share price throughout the period and, as
interest rates edged higher, was able to provide a higher level of income,
contributing to a total return of 4.58% for the fiscal year. The Fund's 30-day
net annualized yield at the end of June was 4.52%.
Fund Loosens Investment
Restrictions, Seeks
Higher Yield
During the fiscal year, Scudder elected to discontinue having the Fund rated by
independent agencies such as Standard & Poor's. In the past, the Fund sought and
achieved the highest rating (AAA) in part by restricting the average maturity of
the portfolio.
By eliminating these stringent agency guidelines, the Fund has greater
flexibility to pursue a higher level of income. For example, in order to achieve
a AAA rating by Standard & Poor's, the Fund had to limit the average maturity of
its holdings to 60 days. The Fund can now average out to 90 days in maturity and
take advantage of the slightly higher yields on longer-maturity investments in
the money-market universe. However, we intend to take a conservative approach
when adding interest-rate risk to the Fund, in accordance with the strict
mandate we have established with our credit research group.
Another way we sought to increase the Fund's yield during the year was by taking
advantage of technical aberrations in the Treasury market. It is the nature of
financial instruments to be priced inefficiently. The most notable price
discrepancies are found in equities, which accounts for their greater return
potential over time. But even a market as highly liquid as the U.S. Treasury
market can experience temporary inefficiencies in pricing from time to time.
Throughout the period, we diligently monitored the trading patterns of
4 - Scudder U.S. Treasury Money Fund
<PAGE>
short-term Treasuries and took advantage of opportunities to gain incremental
yield.
Maturity Management
Adds Value
Few tools are as important to the management of a money-market portfolio as its
average maturity. From the July start of the fiscal year through the end of
October 1996, the Fund's average maturity remained below 50 days. During this
time, we anticipated interest rates would rise and sought to avoid any potential
market volatility, confident that higher reinvestment rates were on the horizon.
As rates edged higher on evidence of stronger economic growth late last year, we
began to extend the Fund's average maturity. It wasn't until after the Federal
Reserve raised short-term rates in March, however, that the average maturity was
extended beyond 50 days. At the end of June, the Fund's average maturity stood
at 53 days.
A Cautionary Outlook
By the end of June, longer-maturity bonds had recovered from their late-March
selloff, and a host of crucial economic reports have suggested inflation is less
of a threat than many predicted. The six-year-old expansion may very well wind
down, paving the way for lower interest rates and a sustained bond market rally.
Importantly, profit expectations may be overly optimistic, given that many
companies are unable to raise prices. Also, at 5.5% the current federal funds
rate does not constitute "easy money" in our view.
But the timing of an economic downturn is difficult to predict. For now, growth
is strong and reported profits continue to exceed expectations. Although the Fed
5 - Scudder U.S. Treasury Money Fund
<PAGE>
left interest rates unchanged at its May 20 and July 2 meetings, it may find
sufficient reason to raise rates later this year. Given this uncertain outlook
for investors in longer-dated fixed-income instruments, we believe Scudder U.S.
Treasury Money Fund will likely have another chance to demonstrate the value of
owning a short-term investment vehicle as part of a well-diversified portfolio.
However, with our newly broadened average maturity guidelines, we also intend to
take advantage of any future rate increases to increase the Fund's yield.
Sincerely,
Your Portfolio Management Team
/s/David B. Wines /s/Debra A. Hanson
David B. Wines Debra A. Hanson
/s/K. Sue Cote
K. Sue Cote
Scudder U.S. Treasury
Money Fund:
A Team Approach to Investing
Scudder U.S. Treasury Money Fund is managed by a team of 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's portfolio. They are supported by Scudder's
large staff of economists, research analysts, traders, and other investment
specialists who work in Scudder's offices across the United States and abroad.
We believe our team approach benefits Fund investors by bringing together many
disciplines and leveraging Scudder's extensive resources.
Lead Portfolio Manager David B. Wines assumed responsibility for the Fund's
day-to-day management in 1996. David focuses on overall investment strategy
and has eight years of investment industry experience. Debra A. Hanson,
Portfolio Manager, assists with the development and execution of investment
strategy and has been with Scudder since 1983. K. Sue Cote, Portfolio Manager,
joined Scudder in 1983 and has 13 years' experience working with short-term
fixed-income investments.
6 - Scudder U.S. Treasury Money Fund
<PAGE>
Investment Portfolio as of June 30, 1997
Principal Value ($)
Amount ($) (Note A)
- --------------------------------------------------------------------------------
Repurchase Agreements 5.7%
- --------------------------------------------------------------------------------
Repurchase Agreement with Donaldson, Lufkin &
Jenrette dated 6/30/97 at 5.9%, to be repurchased
at $17,544,874 on 7/1/97, collateralized by a
$11,799,000 U.S. Treasury Bond, 13.875%, 5/15/11 ... 17,542,000 17,542,000
Repurchase Agreement with State Street Bank and
Trust Company dated 6/30/97 at 5.6%, to be
repurchased at $4,945,769 on 7/1/97,
collateralized by a $5,010,000 U.S. Treasury Note,
6%, 5/31/98 ........................................ 4,945,000 4,945,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $22,487,000) 22,487,000
- --------------------------------------------------------------------------------
U. S. Treasury Obligations 94.3%
- --------------------------------------------------------------------------------
U.S. Treasury Bill, 4.75%, 7/3/97* .................. 20,000,000 19,992,083
U.S. Treasury Bill, 4.37%, 7/10/97* ................. 35,000,000 34,957,559
U.S. Treasury Bill, 4.71%, 7/17/97* ................. 30,000,000 29,933,431
U.S. Treasury Bill, 4.72%, 7/24/97* ................. 40,000,000 39,874,469
U.S. Treasury Note, 5.875%, 7/31/97 ................. 50,000,000 50,035,821
U.S. Treasury Bill, 4.70%, 8/7/97* .................. 30,000,000 29,851,800
U.S. Treasury Bill, 4.93%, 8/14/97* ................. 25,000,000 24,847,006
U.S. Treasury Bill, 4.96%, 8/21/97* ................. 20,000,000 19,857,677
U.S. Treasury Note, 5.625%, 8/31/97 ................. 10,000,000 10,000,000
U.S. Treasury Bill, 5.09%, 9/18/97* ................. 10,000,000 9,888,100
U.S. Treasury Note, 5.50%, 9/30/97 .................. 20,000,000 20,003,200
U.S. Treasury Note, 5.75%, 9/30/97 .................. 15,000,000 15,011,700
U.S. Treasury Bill, 5.16%, 10/16/97* ................ 19,000,000 18,710,250
U.S. Treasury Note, 5.625%, 10/31/97 ................ 30,000,000 30,009,300
U.S. Treasury Note, 6.00%, 12/31/97 ................. 20,000,000 20,050,000
- --------------------------------------------------------------------------------
Total U.S.Treasury Obligations (Cost $372,995,560) 373,022,396
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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Total Investment Portfolio -- 100.0% (Cost $395,482,560) (a) 395,509,396
- --------------------------------------------------------------------------------
(a)The cost for federal income tax purposes was $395,482,560. At June 30, 1997,
net unrealized appreciation for all securities based on tax cost was
$26,836. This consisted of aggregate gross unrealized appreciation for all
securities in which there was an excess of market value over tax cost of
$41,411 and aggregate gross unrealized depreciation for all securities in
which there was an excess of tax cost over market value of $14,575.
* Bond equivalent yield to maturity; not a coupon rate. (Unaudited)
The accompanying notes are an integral part of the financial statements.
7 - Scudder U.S. Treasury Money Fund
<PAGE>
Financial Statements
Statement of Assets and Liabilities
as of June 30, 1997
Assets
-------------------------------------------------------------------------------
Investments, at value (identified cost $395,482,560) $ 395,509,396
Cash ................................................ 312
Receivable on Fund shares sold ...................... 4,076,806
Interest receivable ................................. 2,197,838
Other assets ........................................ 9,888
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Total assets ........................................ 401,794,240
Liabilities
-------------------------------------------------------------------------------
Payable for Fund shares redeemed .................... 2,841,657
Dividends payable ................................... 106,914
Accrued management fee .............................. 54,413
Other payables and accrued expenses ................. 194,202
-------------
Total liabilities ................................... 3,197,186
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Net assets, at value $ 398,597,054
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Net Assets
- --------------------------------------------------------------------------------
Net assets consist of:
Net unrealized appreciation on investments........... 26,836
Paid-in capital ..................................... 398,570,218
---------------------------------------------------------------------
Net assets, at value $ 398,597,054
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Net Asset Value
- --------------------------------------------------------------------------------
Net Asset Value, offering and redemption
price per share ($398,597,054 /
398,570,345 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.
8 - Scudder U.S. Treasury Money Fund
<PAGE>
Statement of Operations
year ended June 30, 1997
Investment Income
- --------------------------------------------------------------------------------
Interest .......................................... $ 21,523,201
--------------
Expenses:
Management fee .................................... 2,095,848
Services to shareholders .......................... 1,464,550
Custodian and accounting fees ..................... 110,878
Trustees' fees and expenses ....................... 31,125
Reports to shareholders ........................... 95,212
Registration fees ................................. 52,798
Auditing .......................................... 33,302
Legal ............................................. 18,988
Other ............................................. 23,069
--------------
Total expenses before reductions .................. 3,925,770
Expense reductions ................................ (1,202,181)
--------------
Expenses, net ..................................... 2,723,589
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Net investment income 18,799,612
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Realized and unrealized gain (loss) on investment transactions
- --------------------------------------------------------------------------------
Net unrealized appreciation on
investments during the period ..................... 38,151
---------------------------------------------------------------------
Net gain on investments 38,151
---------------------------------------------------------------------
---------------------------------------------------------------------
Net increase in net assets resulting
from operations ................................... $ 18,837,763
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The accompanying notes are an integral part of the financial statements.
9 - Scudder U.S. Treasury Money Fund
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Statements of Changes in Net Assets
Years Ended June 30,
Increase (Decrease) in Net Assets 1997 1996
------------------------------------------------------------------------------
Operations:
Net investment income .............. $18,799,612 $18,888,366
Net realized gain from investment
transactions ....................... -- 2,458
Net unrealized appreciation
(depreciation) on investments
during the period .................. 38,151 (136,004)
----------- -----------
Net increase in net assets
resulting from operations .......... 18,837,763 18,754,820
Distributions to shareholders:
From net investment income ......... (18,799,612) (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 ........................ 846,157,354 641,265,052
Shares issued to shareholders in
reinvestment distributions ......... 16,784,285 17,575,662
Shares redeemed .................... (860,582,122) (645,982,556)
----------- -----------
Net increase in net assets from
Fund share transactions ............ 2,359,517 12,858,158
----------- -----------
Increase in net assets ............. 2,395,210 12,724,612
Net assets at beginning of period .. 396,201,844 383,477,232
------------ ------------
Net assets at end of period ........ $398,597,054 $396,201,844
------------ ------------
The accompanying notes are an integral part of the financial statements.
10 - 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>
Years Ended June 30,
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- -------------------------------------------------------------------------------------------------------
<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 .... .045 .048 .046 .027 .027 .044 .065 .075 .074 .055
Less distributions from net
investment income and net
realized gains on
investment transactions (a) (.045) (.048) (.046) (.027) (.027) (.044) (.065) (.075) (.074) (.055)
Net asset value, end of ----------------------------------------------------------------------
period ................. $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
------------------------------------------------------------------------------------------------------
Total Return (%) ......... 4.58 4.91 4.70 2.74 2.74 4.48 6.71 7.74 7.66 5.69
Ratios and Supplemental Data
Net assets, end of period
($ millions) ........... 399 396 383 383 305 299 272 198 167 154
Ratio of operating expenses,
net to daily net average
assets (%) ............. .65 .65 .65 .65 .65 .65 .82 .98 1.01 1.04
Ratio of operating expenses
before expense reductions,
to average daily
net assets (%) ........ .94 .92 .90 .90 .85 .85 .91 .98 1.01 1.04
Ratio of net investment
income to average net
assets (%) ............. 4.49 4.80 4.61 2.75 2.69 4.31 6.37 7.46 7.41 5.54
</TABLE>
(a) Net realized capital gains were less than 6/10 of 1 cents per share.
11 - Scudder U.S. Treasury Money Fund
<PAGE>
Notes to Financial Statements
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 market. 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 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 repurchase 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.
12 - 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 year ended June 30, 1997, the Adviser did
not impose a portion of its fees amounting to $1,202,181, and the portion
imposed amounted to $893,667, of which $54,413 is unpaid at June 30, 1997.
Scudder Service Corporation ("SSC"), a subsidiary of the Adviser, is the
transfer, dividend paying and shareholder service agent for the Fund. For the
year ended June 30, 1997, the amount charged to the Fund by SSC aggregated
$710,792, of which $59,184 is unpaid at June 30, 1997.
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 year ended June 30, 1997,
the amount charged to the Fund by STC aggregated $525,821, of which $48,656 is
unpaid at June 30, 1997.
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 year ended
June 30, 1997, the amount charged to the Fund by SFAC aggregated $50,134, of
which $4,150 is unpaid at June 30, 1997.
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
June 30, 1997, Trustees' fees and expenses aggregated $31,125.
13 - Scudder U.S. Treasury Money Fund
<PAGE>
Report of Independent Accountants
To the Trustees and Shareholders of Scudder U.S. Treasury Money Fund:
We have audited the accompanying statement of assets and liabilities of Scudder
U.S. Treasury Money Fund, including the investment portfolio, as of June 30,
1997, 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 June
30, 1997, by correspondence with the custodian. 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 U.S. Treasury Money Fund as of June 30, 1997, 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.
August 5, 1997
14 - Scudder U.S. Treasury Money Fund
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This Page
intentionally
left blank.
15 - 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
Peter B. Freeman
Trustee; Corporate Director and
Trustee
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
David B. Wines*
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
*Scudder, Stevens & Clark, Inc.
16 - 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
Scudder Money Market Series --
Premium Shares*
Managed Shares*
Scudder Government Money Market Series --
Managed Shares*
Tax Free Money Market+
- ----------------------
Scudder Tax Free Money Fund
Scudder Tax Free Money Market Series--
Managed Shares*
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
Asset Allocation
- ----------------
Scudder Pathway Conservative Portfolio
Scudder Pathway Balanced Portfolio
Scudder Pathway Growth Portfolio
Scudder Pathway International Portfolio
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 Large Company Growth Fund
Scudder Development Fund
Scudder 21st Century Growth Fund
Global Growth
- -------------
Worldwide
Scudder Global Fund
Scudder International Growth and Income 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, Inc.
Retirement Programs
- -------------------
IRA
SEP 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 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 Spain and Portugal 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 in order from
expected least risk to most risk. +A portion of the income from the tax-free
funds may be subject to federal, state, and local taxes. *A class of shares of
the Fund. **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.
17 - Scudder U.S. Treasury Money Fund
<PAGE>
Scudder Solutions
<TABLE>
<CAPTION>
Convenient ways to invest, quickly and reliably:
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<S> <C> <C>
Automatic Investment Plan QuickBuy
A convenient investment program in which you designate Lets you purchase Scudder fund shares
the purchase details and the bank account, and money is electronically, avoiding potential mailing delays;
electronically debited from that account monthly to designate a bank account and the transaction
regularly purchase fund shares and "dollar cost average" details, and money for each of your transactions is
-- buy more shares when the fund's price is lower and electronically debited from that account.
fewer when it's higher, which can reduce your average
purchase price over time.
Automatic Dividend Transfer Payroll Deduction and Direct Deposit
The most timely, reliable, and convenient way to Have all or part of your paycheck -- even government
purchase shares -- use distributions from one Scudder checks -- invested in up to four Scudder funds at
fund to purchase shares in another, automatically one time.
(accounts with identical registrations or the same
social security or tax identification number).
Dollar cost averaging involves continuous investment in securities regardless of price
fluctuations and does not assure a profit or protect against loss in declining markets.
Investors should consider their ability to continue such a plan through periods of low price
levels.
Around-the-clock electronic account service and information, including some transactions:
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Scudder Automated Information Line: SAIL(TM) -- Scudder's Web Site -- http://funds.scudder.com
1-800-343-2890
Scudder Electronic Account Services: Offering
Personalized account information, the ability to account information and transactions, interactive
exchange or redeem shares, and information on other worksheets, prospectuses and applications for all
Scudder funds and services via touchtone telephone. Scudder funds, plus your current asset allocation,
whenever you need them. Scudder's Site also
provides news about Scudder funds, retirement
planning information, and more.
Retirees and those who depend on investment proceeds for living expenses can enjoy these convenient,
timely, and reliable automated withdrawal programs:
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Automatic Withdrawal Plan QuickSell
You designate the bank account, determine the schedule Provides speedy access to your money by
(as frequently as once a month) and amount of the electronically crediting your redemption proceeds
redemptions, and Scudder does the rest. to the bank account you designate.
DistributionsDirect
Automatically deposits your fund distributions into the
bank account you designate within three business days
after each distribution is paid.
For more information about these services, call a Scudder representative at 1-800-225-5163
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18 - Scudder U.S. Treasury Money Fund
<PAGE>
Mutual Funds and More -- Brokerage and Guidance Services:
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Scudder Brokerage Services Scudder Portfolio Builder
Offers you access to a world of investments, A free service designed to help suggest ways investors like
including stocks, corporate bonds, Treasuries, plus you can diversify your portfolio among domestic and global,
over 6,000 mutual funds from at least 150 mutual as well as equity, fixed-income, and money market funds,
fund companies. And Scudder Fund Folio(SM) provides using Scudder funds.
investors with access to a marketplace of more than
500 no-load funds from well-known companies--with no Personal Counsel from Scudder(SM)
transaction fees or commissions. Scudder
shareholders can take advantage of a Scudder Developed for investors who prefer the benefits of no-load
Brokerage account already reserved for them, with Scudder funds but want ongoing professional assistance in
no minimum investment. For information about managing a portfolio. Personal Counsel(SM) is a highly
Scudder Brokerage Services, call 1-800-700-0820. customized, fee-based asset management service for
individuals investing $100,000 or more.
Fund Folio funds held less than six months will be charged a fee for redemptions. You can buy
shares directly from the fund itself or its principal underwriter or distributor without
paying this fee. Scudder Brokerage Services, Inc., 42 Longwater Drive, Norwell, MA 02061.
Member SIPC.
Personal Counsel From Scudder(SM) and Personal Counsel(SM) are service marks of and represent a
program offered by Scudder Investor Services, Inc., Adviser.
For more information about these services, call a Scudder representative at 1-800-225-5163
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Additional Information on How to Contact Scudder:
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For existing account services and transactions Please address all written correspondence to
Scudder Investor Relations -- 1-800-225-5163 The Scudder Funds
P.O. Box 2291
For establishing 401(k) and 403(b) plans Boston, Massachusetts
Scudder Defined Contribution Services -- 02107-2291
1-800-323-6105
Or Stop by a Scudder Investor Center
For information about The Scudder Funds, including Many shareholders enjoy the personal, one-on-one service of
additional applications and prospectuses, or for the Scudder Investor Centers. Check for an Investor Center near
answers to investment questions you -- they can be found in the following cities:
Scudder Investor Relations -- 1-800-225-2470 Boca Raton Chicago San Francisco
[email protected] Boston New York
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New From Scudder: Scudder International Growth and Income Fund
Scudder International Growth and Income Fund takes a yield-oriented approach to investing in international equities. The
Fund seeks to provide long-term growth of capital plus current income. Investors who desire international exposure but
who wish to take a more conservative approach may appreciate the Fund's emphasis on the dividend paying stocks of
well-established companies outside the United States.
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The share price of Scudder International Growth and Income Fund will fluctuate. International investing involves special
risks including currency fluctuation and political instability. Contact Scudder Investor Services, Inc., Distributor,
for a prospectus which contains more complete information, including management fees and other expenses. Please read it
carefully before you invest or send money.
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19 - 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.
This information must be preceded or accompanied by a
current prospectus.
Portfolio changes should not be considered recommendations
for action by individual investors.
SCUDDER
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