This combined prospectus sets forth concisely the information a prospective
investor should know before investing in the following open-end funds: Scudder
Global Fund, a series of Scudder Global Fund, Inc.; Scudder Growth and Income
Fund, a series of Scudder Investment Trust; Scudder Short Term Bond Fund, a
series of Scudder Funds Trust; and Scudder Cash Investment Trust. Please retain
it for future reference.
Shares of Scudder Cash Investment Trust are not insured or guaranteed by the
U.S. Government. Scudder Cash Investment Trust 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.
If you require more detailed information, Statements of Additional Information
dated May 1, 1996 for Scudder Growth and Income Fund and Scudder Short Term Bond
Fund and November 1, 1995 for Scudder Global Fund and Scudder Cash Investment
Trust, as amended from time to time, may be obtained without charge by writing
Scudder Investor Services, Inc., Two International Place, Boston, MA 02110-4103
or calling 1-800-225-2470. The Statements, which are incorporated by reference
into this prospectus, have been filed with the Securities and Exchange
Commission.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
Contents--see page 8.
Scudder Global Fund
- -------------------
November 1, 1995
Scudder Growth and
Income Fund
- ------------------
May 1, 1996
Scudder Short Term
Bond Fund
- ------------------
May 1, 1996
Scudder Cash
Investment Trust
- ----------------
November 1, 1995
Four pure no-load(TM) (no sales charges) mutual funds offering a broad range of
investment objectives.
<PAGE>
Expense information
How to compare a Scudder pure no-load(TM) fund This information is designed to
help you understand the various costs and expenses of investing in Scudder
funds. By reviewing this table and those in other mutual funds' prospectuses,
you can compare each Fund's fees and expenses with those of other funds. With
Scudder's pure no-load(TM) funds, you pay no commissions to purchase or redeem
shares, or to exchange from one fund to another. As a result, all of your
investment goes to work for you.
1) Shareholder transaction expenses: Expenses charged directly to your
individual account in a Fund for various transactions.
Scudder Scudder
Growth and Short Term
Income Fund Bond Fund
----------- ---------
Sales commissions to purchase shares
(sales load) NONE NONE
Commissions to reinvest dividends NONE NONE
Redemption fees NONE* NONE*
Fees to exchange shares NONE NONE
2) Annual Fund operating expenses: Expenses paid by a Fund before it distributes
its net investment income, expressed as a percentage of each Fund's average
daily net assets for the fiscal year ended December 31, 1995 for Scudder Growth
and Income Fund and Scudder Short Term Bond Fund.
Investment management fee 0.51%*+++ 0.49%
12b-1 fees NONE NONE
Other expenses 0.28% 0.26%
---- ----
Total Fund operating expenses 0.79%*+++ 0.75%
==== ====
Example
Based on the level of total Fund operating expenses listed above, the total
expenses relating to a $1,000 investment, assuming a 5% annual return and
redemption at the end of each period, are listed below. Investors do not pay
these expenses directly; they are paid by each Fund before it distributes its
net investment income to shareholders. (As noted above, the Funds have no
redemption fees of any kind.)
One year $ 8 $ 8
Three years 25 24
Five years 44 42
Ten years 98 93
See "Fund organization--Investment adviser" for further information about the
investment management fee. This example assumes reinvestment of all dividends
and distributions and that the percentage amounts listed under "Annual Fund
operating expenses" remain the same each year. This example should not be
considered a representation of past or future expenses or return. Actual Fund
expenses and return vary from year to year and may be higher or lower than those
shown.
* You may redeem by writing or calling the Funds or by "Write-A-Check" for
Scudder Short Term Bond Fund. If you wish to receive your redemption
proceeds via wire, there is a $5 wire service fee. For additional
information, please refer to "Transaction information--Redeeming shares."
+++ These fees reflect the fees which would have been payable for the fiscal
year ended December 31, 1995 under the Investment Management Agreement
dated August 8, 1995.
2
<PAGE>
Expense information
How to compare a Scudder pure no-load(TM) fund This information is designed to
help you understand the various costs and expenses of investing in Scudder
funds. By reviewing this table and those in other mutual funds' prospectuses,
you can compare each Fund's fees and expenses with those of other funds. With
Scudder's pure no-load(TM) funds, you pay no commissions to purchase or redeem
shares, or to exchange from one fund to another. As a result, all of your
investment goes to work for you.
1) Shareholder transaction expenses: Expenses charged directly to your
individual account in a Fund for various transactions.
Scudder
Scudder Cash Investment
Global Fund Trust
----------- ---------
Sales commissions to purchase shares
(sales load) NONE NONE
Commissions to reinvest dividends NONE NONE
Redemption fees NONE* NONE*
Fees to exchange shares NONE NONE
2) Annual Fund operating expenses: Expenses paid by a Fund before it distributes
its net investment income, expressed as a percentage of each Fund's average
daily net assets for the fiscal year ended June 30, 1995 for Scudder Global Fund
and Scudder Cash Investment Trust.
Investment management fee 0.97% 0.41%
12b-1 fees NONE NONE
Other expenses 0.41% 0.37%
----- -----
Total Fund operating expenses 1.38% 0.78%
===== =====
Example
Based on the level of total Fund operating expenses listed above, the total
expenses relating to a $1,000 investment, assuming a 5% annual return and
redemption at the end of each period, are listed below. Investors do not pay
these expenses directly; they are paid by each Fund before it distributes its
net investment income to shareholders. (As noted above, the Funds have no
redemption fees of any kind.)
One year $ 14 $ 8
Three years 44 25
Five years 76 43
Ten years 166 97
See "Fund organization--Investment adviser" for further information about the
investment management fee. This example assumes reinvestment of all dividends
and distributions and that the percentage amounts listed under "Annual Fund
operating expenses" remain the same each year. This example should not be
considered a representation of past or future expenses or return. Actual Fund
expenses and return vary from year to year and may be higher or lower than those
shown.
* You may redeem by writing or calling the Funds or by "Write-A-Check" for
Scudder Cash Investment Trust. If you wish to receive your redemption proceeds
via wire, there is a $5 wire service fee. For additional information, please
refer to "Transaction information--Redeeming shares."
3
<PAGE>
Financial highlights
Scudder Global Fund
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the audited financial
statements.
If you would like more detailed information concerning the Fund's performance, a
complete portfolio listing and audited financial statements are available in the
Fund's Annual Report dated June 30, 1995 and may be obtained without charge by
writing or calling Scudder Investor Services, Inc.
<TABLE>
<CAPTION>
YEARS ENDED JUNE 30,
------------------------------------------
1995 1994(d) 1993 1992
------------------------------------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period ... $23.93 $21.63 $19.56 $18.06
------ ------ ------ ------
Income from investment
operations:
Net investment income . .25 .23 .15 .19
Net realized and
unrealized gain
(loss) on investment
transactions ........ 1.91 2.57 2.42 2.28
------ ------ ------ ------
Total from investment
operations ............ 2.16 2.80 2.57 2.47
------ ------ ------ ------
Less distributions from:
Net investment income . (.11) (.24) (.16) (.31)
Net realized gains
on investment
transactions ........ (.34) (.26) (.34) (.66)
------ ------ ------ ------
Total distributions ..... (.45) (.50) (.50) (.97)
------ ------ ------ ------
Net asset value, end of
period .............. $25.64 $23.93 $21.63 $19.56
====== ====== ====== ======
TOTAL RETURN (%) ........ 9.11 12.99 13.45 14.09
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end of period
($ millions) .......... 1,168 1,096 577 371
Ratio of operating
expenses, to average
daily net assets (%) .. 1.38 1.45 1.48 1.59
Ratio of net investment
income to average
daily net assets (%) .. 1.03 .97 .90 1.09
Portfolio turnover
rate (%) .............. 44.4 59.7 64.9 44.6
</TABLE>
<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 23, 1986
(COMMENCEMENT
OF OPERATIONS)
YEARS ENDED JUNE 30, TO JUNE 30,
------------------------------------------ ---------------
1991 1990 1989 1988 1987
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ... $20.36 $17.64 $14.47 $15.42 $12.00
------ ------ ------ ------ ------
Income from investment
operations:
Net investment income . .40 .19 .19 .18 .05
Net realized and
unrealized gain
(loss) on investment
transactions ........ (1.50) 3.28 3.20 (.82) 3.37
------ ------ ------ ------ ------
Total from investment
operations ............ (1.10) 3.47 3.39 (.64) 3.42
------ ------ ------ ------ ------
Less distributions from:
Net investment income . (.37) (.20) (.14) (.06) --
Net realized gains
on investment
transactions ........ (.83) (.55) (.08) (.25) --
------ ------ ------ ------ ------
Total distributions ..... (1.20) (.75) (.22) (.31) --
------ ------ ------ ------ ------
Net asset value, end of
period .............. $18.06 $20.36 $17.64 $14.47 $15.42
====== ====== ====== ====== ======
TOTAL RETURN (%) ........ (5.20) 20.00 23.90 (4.45) 28.50**
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end of period
($ millions) .......... 268 257 91 81 102
Ratio of operating
expenses, to average
daily net assets (%) .. 1.70 1.81 1.98 1.71(b) 1.84*(a)
Ratio of net investment
income to average
daily net assets (%) .. 2.21 1.77 1.22 1.23 .63*
Portfolio turnover
rate (%) .............. 85.0(c) 38.3 30.7 53.8 32.2*
</TABLE>
(a) The Adviser did not impose all of its management fee during the period July
23, 1986 (commencement of operations) to December 31, 1986, amounting to
$.01 per share.
(b) The Adviser absorbed a portion of the Fund's expenses exclusive of
management fees, amounting to $.03 per share.
(c) The portfolio turnover rate on equity securities and debt securities was
62.7% and 174.4%, respectively, based on average monthly equity holdings
and average monthly debt holdings.
(d) Per share amounts have been calculated using weighted average shares
outstanding.
* Annualized
** Not annualized
4
<PAGE>
Financial highlights
Scudder Growth and Income Fund
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the audited financial
statements.
If you would like more detailed information concerning the Fund's performance, a
complete portfolio listing and audited financial statements are available in the
Fund's Annual Report dated December 31, 1995 and may be obtained without charge
by writing or calling Scudder Investor Services, Inc.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------
1995 1994 1993(b) 1992 1991 1990 1989 1988 1987 1986
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period .............................. $16.26 $17.24 $16.20 $15.76 $12.77 $14.14 $13.18 $12.31 $15.02 $15.35
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income from investment
operations:
Net investment income .................. .55 .49 .49 .57 .57 .65 .67 .60 .68 .67
Net realized and
unrealized gain (loss) on
investment transactions .............. 4.46 (.05) 2.01 .90 2.97 (1.01) 2.75 .86 (.07) 1.96
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment
operations ............................. 5.01 .44 2.50 1.47 3.54 (.36) 3.42 1.46 .61 2.63
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Less distributions from:
Net investment income .................. (.56) (.51) (.45) (.53) (.55) (.67) (.69) (.59) (.68) (.68)
Net realized gains on
investment transactions .............. (.48) (.91) (1.01) (.50) -- (.34) (1.77) -- (2.64) (2.28)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total distributions ...................... (1.04) (1.42) (1.46) (1.03) (.55) (1.01) (2.46) (.59) (3.32) (2.96)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period ......... $20.23 $16.26 $17.24 $16.20 $15.76 $12.77 $14.14 $13.18 $12.31 $15.02
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (%).......................... 31.18 2.60 15.59 9.57 28.16 (2.33) 26.36 12.01 3.50 18.27
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end of period
($ millions) ........................... 3,061 1,992 1,624 1,166 723 491 490 402 392 385
Ratio of operating expenses to
average net assets (%) (a) ............. .80 .86 .86 .94 .97 .95 .87 .92 .89 .83
Ratio of net investment income
to average net assets (%) .............. 3.10 2.98 2.93 3.60 4.03 5.03 4.47 4.63 4.24 4.19
Portfolio turnover rate (%) .............. 26.9 42.3 35.5 27.5 44.7 64.7 76.6 47.6 59.5 45.3
<FN>
(a) The Adviser did not impose a portion of its management fee amounting
to $.02 per share for the year ended December 31, 1992.
If all expenses, including the management fee not imposed,
had been incurred by the Fund, the annualized ratio of expenses to
average net assets for such year would have been 1.08%
and the total return would have been lower. This ratio includes costs
associated with the acquisition of certain assets of
Niagara Share Corporation on July 27, 1992, exclusive of these charges the
ratio would have been .92%.
(b) Effective January 1, 1993, the Fund discontinued using equalization accounting.
</FN>
</TABLE>
5
<PAGE>
Financial Highlights
Scudder Short Term Bond Fund
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the audited financial
statements. If you would like more detailed information concerning the Fund's
performance, a complete portfolio listing and audited financial statements are
available in the Fund's Annual Report dated December 31, 1995 and may be
obtained without charge by writing or calling Scudder Investor Services, Inc.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
-----------------------------------------------------------------------------------
1995 1994 1993(c) 1992 1991 1990 1989 1988 1987 1986
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period................................. $10.91 $12.01 $11.93 $12.25 $11.72 $11.71 $11.19 $11.23 $11.92 $11.35
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income from investment
operations:
Net investment income (a).............. .71 .81 .87 .97 1.08 1.09 .83 .73 .74 .81
Net realized and unrealized
gains (losses)....................... .44 (1.15) .08 (.33) .53 .01 .61 (.04) (.58) .78
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment
transactions......................... 1.15 (.34) .95 .64 1.61 1.10 1.44 .69 .16 1.59
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Less distributions:
From net investment income........... (.43) (.64) (.80) (.96) (1.08) (1.09) (.83) (.73) (.74) (.81)
From net realized gains.............. -- -- (.03) -- -- -- (.09) -- (.11) (.21)
In excess of gains................... -- -- (.04) -- -- -- -- -- -- --
From tax return of capital........... (.28) (.12) -- -- -- -- -- -- -- --
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total distributions...................... (.71) (.76) (.87) (.96) (1.08) (1.09) (.92) (.73) (.85) (1.02)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period........... $11.35 $10.91 $12.01 $11.93 $12.25 $11.72 $11.71 $11.19 $11.23 $11.92
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (%)......................... 10.74 (2.87) 8.18 5.43 14.38 9.88 13.20 6.10 1.40 14.70
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
($ millions)......................... 1,823 2,136 3,190 2,862 2,247 340 72 10 10 8
Ratio of operating expenses net, to
average daily net assets (%)......... .75 .73 .68 .75 .44 .16 .36 1.50 1.45 1.45
Ratio of net investment income net,
to average daily net assets (%)...... 6.37 6.93 7.21 8.01 8.96 9.36 7.97 6.48 6.34 6.89
Portfolio turnover rate (%).............. 101.1 65.3 66.1 83.7(b) 41.0 52.9 40.0 23.5 28.7 15.6
(a) Portion of expenses
reimbursed by
the Adviser........................ $ -- $ -- $ -- $ -- $ -- $ .02 $ .10 $ .04 $ .04 $ --
Management fee not imposed
by the Adviser ...................... $ -- $ -- $ -- $ -- $ .06 $ .07 $ .05 $ -- $ -- $ .01
Ratio of operating expenses, including expenses reimbursed, management fee and other expenses not imposed, to average daily
net assets aggregated .78%, 1% and 1.19% for the years ended December 31, 1992, 1991 and 1990, respectively.
(b) The high turnover rate reflects an increase in principal prepayments on mortgage securities in the Fund.
(c) Per share amounts have been calculated using weighted average shares outstanding.
On July 3, 1989, the Fund adopted its present name and objective. Prior to that date, the Fund was known as the General 1994
Portfolio of Scudder Target Fund and its objectives were current income, capital preservation, and possible capital
appreciation. Financial information prior to July 3, 1989 should not be considered representative of the present Fund.
</TABLE>
6
<PAGE>
Financial Highlights
Scudder Cash Investment Trust
The following table includes selected data for a share outstanding throughout
each year and other performance information derived from the audited financial
statements.
If you would like more detailed information concerning the Fund's performance, a
complete portfolio listing and audited financial statements are available in the
Fund's Annual Report dated June 30, 1995 and may be obtained without charge by
writing or calling Scudder Investor Services, Inc.
<TABLE>
<CAPTION>
YEARS ENDED JUNE 30,
------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------------------------------------------------------------------------------
<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....... .048 .027 .027 .047 .069 .080 .082 .064 .056 .071
Distributions from
net investment income
and net realized
capital gains............. (.048) (.027) (.027) (.047) (.069) (.080) (.082) (.064) (.056) (.071)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period............. $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (%)............ 4.90 2.77 2.75 4.76 7.13 8.23 8.49 6.59 5.71 7.25
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end
of year ($ millions)...... 1,520 1,430 1,119 1,361 1,736 1,644 1,563 1,370 1,144 1,104
Ratio of operating
expenses to average
daily net assets (%)...... .78 .82 .78 .70 .66 .67 .66 .68 .68 .65
Ratio of net investment
income to average
daily net assets (%)...... 4.84 2.78 2.72 4.58 6.91 7.93 8.21 6.44 5.55 7.01
</TABLE>
7
<PAGE>
A message from Scudder's chairman
Scudder, Stevens & Clark, Inc., investment adviser to the Scudder Family of
Funds, was founded in 1919. We offered America's first no-load mutual fund in
1928. Today, we manage in excess of $100 billion for many private accounts and
over 50 mutual fund portfolios. We manage the mutual funds in a special program
for the American Association of Retired Persons, as well as the fund options
available through Scudder Horizon Plan, a tax-advantaged variable annuity. We
also advise The Japan Fund and nine closed-end funds that invest in countries
around the world.
The Scudder Family of Funds is designed to make investing easy and less costly.
It includes money market, tax free, income and growth funds as well as IRAs,
401(k)s, Keoghs and other retirement plans.
Services available to all shareholders include toll-free access to the
professional service representatives of Scudder Investor Relations, easy
exchange among funds, shareholder reports, informative newsletters and the
walk-in convenience of Scudder Funds Centers.
All Scudder mutual funds are pure no-load(TM). This means you pay no commissions
to purchase or redeem your shares or to exchange from one fund to another. There
are no "12b-1" fees either, which many other funds now charge to support their
marketing efforts. All of your investment goes to work for you. We look forward
to welcoming you as a shareholder.
/s/Daniel Pierce
Fund objectives
o Scudder Global Fund
seeks long-term growth of capital from global investment markets
o Scudder Growth and Income Fund
seeks long-term growth of capital, current income and growth of income
o Scudder Short Term Bond Fund
seeks a high level of income consistent with a high degree of principal
stability
o Scudder Cash Investment Trust
seeks stability of capital and, consistent therewith, to maintain the
liquidity of capital and to provide current income from money market
securities
Contents
Introduction 9
Scudder Global Fund 9
Scudder Growth and Income Fund 11
Scudder Short Term Bond Fund 11
Scudder Cash Investment Trust 13
Special risk considerations 14
Additional information about policies
and investments 15
Purchases 20
Exchanges and redemptions 21
Distribution and performance
information 22
Fund organization 24
Transaction information 25
Shareholder benefits 30
Directors and Officers 34
Trustees and Officers 35
Investment products and services 36
How to contact Scudder 37
8
<PAGE>
Introduction
Scudder Global Fund, Scudder Growth and Income Fund, Scudder Short Term Bond
Fund and Scudder Cash Investment Trust (collectively, the "Funds") are mutual
funds advised by Scudder, Stevens & Clark, Inc. (the "Adviser"). The four Funds'
prospectuses are presented together so you can understand their important
differences and decide which Fund or combination of Funds is most suitable for
your investment needs.
Each Fund offers all the benefits of the Scudder Family of Funds. Scudder,
Stevens & Clark, Inc. manages a diverse family of pure no-load(TM) funds and
provides a wide range of services to help investors meet their investment needs.
Please refer to "Investment products and services" for additional information.
Except as otherwise indicated, each Fund's investment objectives and policies
are not fundamental and may be changed without a vote of shareholders.
Shareholders will receive written notice of any changes in a Fund's objectives.
If there is a change in investment objectives, shareholders should consider
whether that Fund remains an appropriate investment in light of their current
financial position and needs. There can be no assurance that each Fund's
objectives will be met.
Scudder Global Fund
Investment objective and policies
Scudder Global Fund seeks long-term growth of capital through a diversified
portfolio of marketable securities, primarily equity securities, including
common stocks, preferred stocks and debt securities convertible into common
stocks. The Fund invests on a worldwide basis in equity securities of companies
which are incorporated in the U.S. or in foreign countries. It also may invest
in the debt securities of U.S. and foreign issuers. Income is an incidental
consideration.
Investments
The Fund invests in companies that the Adviser believes will benefit from global
economic trends, promising technologies or products and specific country
opportunities resulting from changing geopolitical, currency or economic
relationships. It is expected that investments will be spread broadly around the
world. The Fund will be invested usually in securities of issuers located in at
least three countries, one of which may be the U.S. The Fund may be invested
100% in non-U.S. issues, and for temporary defensive purposes may be invested
100% in U.S. issues, although under normal circumstances it is expected that
both foreign and U.S. investments will be represented in the Fund's portfolio.
It is expected that investments will include companies of varying size as
measured by assets, sales or capitalization.
The Fund generally invests in equity securities of established companies listed
on U.S. or foreign securities exchanges, but also may invest in securities
traded over-the-counter. It also may invest in debt securities convertible into
common stock, and convertible and non-convertible preferred stock, and
fixed-income securities of governments, government agencies, supranational
agencies and companies when the Adviser believes the potential for appreciation
will equal or exceed that available from investments in equity securities. These
debt and fixed-income securities will be predominantly investment-grade
securities, that is, those rated Aaa, Aa, A or Baa by Moody's Investors Service,
Inc. ("Moody's") or AAA, AA, A or BBB by Standard & Poor's ("S&P") or those of
equivalent quality as determined by the Adviser. The Fund may not invest more
than 5% of its total assets in debt securities rated Baa or below by Moody's, or
BBB or below by S&P or deemed by the Adviser to be of comparable quality. (See
"Additional information about policies and investments --Risk factors.")
9
<PAGE>
Scudder Global Fund (cont'd)
The Fund may invest in zero coupon securities which pay no cash income and are
issued at substantial discounts from their value at maturity. When held to
maturity, their entire income, which consists of accretion of discount, comes
from the difference between the issue price and their value at maturity.
Fixed-income securities also may be held for temporary defensive purposes when
the Adviser believes market conditions so warrant and for temporary investment.
Similarly, the Fund may invest in cash equivalents (including foreign money
market instruments, such as bankers' acceptances, certificates of deposit,
commercial paper, short-term government and corporate obligations and repurchase
agreements) for temporary defensive purposes and for liquidity. The Fund may
invest in closed-end investment companies holding foreign securities. In
addition, the Fund may engage in strategic transactions.
Why invest in the Fund?
The management of the Fund believes that there is substantial opportunity for
long-term capital growth from a professionally managed portfolio of securities
selected from the U.S. and foreign equity markets. This global investment
framework seeks to take advantage of the investment opportunities created by the
global economy. The world has become highly integrated in economic, industrial
and financial terms. Companies increasingly operate globally as they purchase
raw materials, produce and sell their products and raise capital. As a result,
international trends such as movements in currency and trading relationships are
becoming more important to many industries than purely domestic influences. To
understand a company's business, it is frequently more important to understand
how it is linked to the world economy than whether or not it is, for example, a
U.S., French or Swiss company. Just as a company takes a global perspective in
deciding where to operate, so too may an investor benefit from looking globally
in deciding which industries are growing, which producers are efficient and
which companies' shares are undervalued. The Fund affords the investor access to
opportunities wherever they arise, without being constrained by the location of
a company's headquarters or the trading market for its shares.
The Fund is designed for investors seeking worldwide equity opportunities in
developed, newly industrialized and developing countries (some of these
developing countries are located in Latin America and Africa). Like consumers
who seek to buy a good product wherever it is made, the Fund seeks to find
investment opportunities regardless of location. Because the Fund's portfolio
invests globally, it provides the potential to augment returns available from
the U.S. stock market. In addition, since U.S. and foreign markets do not always
move in step with each other, a global portfolio will be more diversified than
one invested solely in U.S. securities.
Investing directly in foreign securities is usually impractical for most
investors because it presents complications and extra costs. Investors often
find it difficult to arrange purchases and sales, to obtain current information,
to hold securities in safekeeping and to convert the value of their investments
from foreign currencies into dollars. The Fund manages these problems for the
investor. With a single investment, the investor has a diversified worldwide
investment portfolio which is managed actively by experienced professionals. The
Adviser has had many years of experience investing in foreign markets and
dealing with trading, custody and currency transactions around the world. The
Adviser has the benefit of information it receives from worldwide sources and
believes the Fund affords investors an efficient and cost-effective method of
investing worldwide.
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Scudder Growth and Income Fund
Investment objective and policies
Scudder Growth and Income Fund seeks long-term growth of capital, current income
and growth of income. The Fund invests primarily in common stocks, preferred
stocks and securities convertible into common stocks of companies which offer
the prospect for growth of earnings while paying current dividends. Over time,
continued growth of earnings tends to lead to higher dividends and enhancement
of capital value. The Fund allocates its investments among different industries
and companies, and adjusts its portfolio securities for investment
considerations and not for trading purposes.
Investments
The Fund attempts to achieve its investment objective by investing primarily in
dividend-paying common stocks, preferred stocks and securities convertible into
common stocks. The Fund may also purchase such securities which do not pay
current dividends but which offer prospects for growth of capital and future
income. Convertible securities (which may be current coupon or zero coupon
securities) are bonds, notes, debentures, preferred stocks and other securities
which may be converted or exchanged at a stated or determinable exchange ratio
into underlying shares of common stock. The Fund may also invest in
nonconvertible preferred stocks consistent with the Fund's objective. From time
to time, for temporary defensive purposes, when the Adviser feels such a
position is advisable in light of economic or market conditions, the Fund may
invest a portion of its assets in cash and cash equivalents. The Fund may invest
in foreign securities and in repurchase agreements. It may also loan securities
and may engage in strategic transactions. More information about investment
techniques is provided under "Additional information about policies and
investments."
The Fund's share price fluctuates with changes in interest rates and market
conditions. These fluctuations may cause the value of shares to be higher or
lower than when purchased.
Why invest in the Fund?
The Fund seeks to provide participation in the long-term growth of the economy
through the potential investment returns offered by common stocks and securities
convertible into common stocks. It maintains a diversified portfolio consisting
primarily of common stocks, preferred stocks and convertible securities of
companies with long-standing records of earnings growth. These companies, many
of which are mainstays of the domestic U.S. economy, offer prospects for future
growth of earnings and profits, and therefore may offer investors attractive
long-term investment opportunities. This strategy, with an emphasis on income,
may be more appropriate for the conservative portions of your equity portfolio.
Scudder Short Term Bond Fund
Investment objective and policies
Scudder Short Term Bond Fund is designed for investors seeking a higher and more
stable level of income than normally provided by money market investments and
more price stability than investments in intermediate- and long-term bonds.
The Fund's objective is to provide a high level of income consistent with a high
degree of principal stability by investing primarily in high quality, short-term
bonds. The dollar-weighted average effective maturity of the Fund's portfolio
may not exceed three years. Within this limitation, the Fund may purchase
individual securities with remaining stated maturities greater than three years.
Investments
The Fund invests at least 65% of its net assets in a managed portfolio of bonds
consisting of U.S. Government securities, including bonds, notes and bills
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Scudder Short Term Bond Fund (cont'd)
issued by the U.S. Treasury, and securities issued by agencies and
instrumentalities of the U.S. Government; corporate debt securities, such as
bonds, notes and debentures; mortgage-backed securities and other asset-backed
securities.
Other eligible investments for the Fund are money market instruments which are
comprised of commercial paper, bank obligations (i.e., certificates of deposit
and bankers' acceptances) and repurchase agreements; privately placed
obligations (including restricted securities); and foreign securities, including
non-U.S. dollar-denominated securities and U.S. dollar-denominated debt
securities issued by foreign issuers and foreign branches of U.S. banks.
In addition, the Fund may purchase indexed securities, securities on a
when-issued or forward delivery basis and may engage in dollar roll transactions
and strategic transactions. See "Additional information about policies and
investments" for more information.
To meet its objective, the Adviser actively manages the Fund's portfolio.
Investment decisions are based on general economic and financial trends, such as
domestic and international economic developments, the outlook for the securities
markets, the level of interest rates and inflation, the supply and demand of
debt securities and other factors. The composition of the Fund's portfolio is
also determined by individual security analysis. The Adviser's team of
experienced credit analysts actively monitors the credit quality of the
investments of the Fund.
The net asset value of the Fund is expected to fluctuate with changes in
interest rates and bond market conditions, although this fluctuation should be
more moderate than that of a fund with a longer average maturity. The Adviser,
however, will attempt to reduce principal fluctuation through, among other
things, diversification, credit analysis and security selection and adjustment
of the Fund's average portfolio maturity. The Fund's share price tends to rise
as interest rates decline and decline as interest rates rise. In periods of
rising interest rates and falling bond prices, the Adviser may shorten the
Fund's average maturity to minimize the effect of declining bond values on the
Fund's net asset value. Conversely, during times of falling rates and rising
prices, a longer average maturity of up to three years may be sought. When the
Adviser believes economic or other conditions warrant, for temporary defensive
purposes the Fund may invest more than 35% of its assets in money market
instruments.
The Fund's securities generally offer less current yield than securities of
lower quality (rated below BBB/Baa) or longer maturity, but lower-quality
securities generally have less liquidity, and both tend to have greater credit
and market risk and, consequently, more price volatility.
It is against the Fund's policy to make changes in the portfolio for short-term
trading purposes. However, the Fund may take advantage of opportunities provided
by temporary dislocations in the market to maintain principal stability or
enhance income.
High quality securities
The Fund emphasizes high quality investments. At least 65% of the Fund's net
assets will be invested in (1) obligations of the U.S. Government, its agencies
or instrumentalities, and (2) debt securities rated, at the time of purchase, in
one of the two highest ratings categories of S&P (AAA or AA) or Moody's (Aaa or
Aa) or, if not rated, judged to be of comparable quality by the Adviser. In
addition, the Fund will not invest in any debt security rated at the time of
purchase lower than BBB by S&P or Baa by Moody's, or of equivalent quality as
determined by the Adviser. Should the rating of a portfolio security be
downgraded, the Adviser will determine whether it is in the best interest of the
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Fund to retain or dispose of the security.
The U.S. Government securities in which the Fund may invest include (1)
securities issued and backed by the full faith and credit of the U.S.
Government, such as U.S. Treasury bills, notes and bonds; (2) securities,
including mortgage-backed securities, issued by an agency or instrumentality of
the U.S. Government, including those backed by the full faith and credit of the
U.S. Government, such as securities of the Export-Import Bank of the United
States, the General Services Administration and the Government National Mortgage
Association, and those issued by agencies and instrumentalities, such as Federal
Home Loan Banks and the Federal Home Loan Mortgage Corporation which, while
neither direct obligations of nor guaranteed by the U.S. Government, are backed
by the credit of the issuer itself and may be supported as well by the issuer's
right to borrow from the U.S. Treasury; and (3) securities of the U.S.
Government, its agencies or instrumentalities on a when-issued or forward
delivery basis. In addition, the Fund may invest in repurchase agreements with
respect to U.S. Government securities.
Why invest in the Fund?
Scudder Short Term Bond Fund is designed for individuals, institutions and
corporations seeking a high level of income compared to money market funds,
consistent with a high degree of principal stability for their investments
compared to that of longer-term fixed-income investments. Investors may choose
this Fund as a complement to money market funds. Money market funds are managed
for total price stability but generally tend to offer somewhat lower yields than
this Fund. Further, the Fund may appeal to investors favoring a more stable
investment and willing to accept somewhat lower yields than they might normally
expect from a longer-term bond fund.
Some investors may view the Fund as an alternative to a bank certificate of
deposit ("CD"). While an investment in the Fund is not federally insured and
there is no guarantee of price stability, an investment in the Fund--unlike a
CD--is not locked away for any period, may be redeemed at any time without
incurring early withdrawal penalties and may provide a higher yield. The Fund
may also be appropriate for IRAs, 401(k)s and other retirement plans where
income is compounded on a tax-deferred basis.
Scudder Cash Investment Trust
Investment objectives and policies
The investment objectives of Scudder Cash Investment Trust are to maintain the
stability of capital and, consistent therewith, to maintain the liquidity of
capital and to provide current income. The Fund seeks to maintain a constant net
asset value of $1.00 per share and declares dividends daily.
Investments
The Fund purchases U.S. dollar-denominated securities with remaining maturities
of 397 calendar days or less, except in the case of U.S. Government securities
which may have remaining maturities of 762 calendar days or less. The
dollar-weighted average maturity of the Fund's portfolio will vary with money
market conditions, but is always 90 days or less. All securities in the Fund's
portfolio must meet credit quality standards pursuant to procedures established
by the Trustees. Generally, the Fund may purchase only securities which are
rated, or issued by a company with comparable securities rated, within the two
highest quality rating categories of one or more of the following rating
agencies: Moody's, S&P and Fitch. If a security is unrated, the Fund may
purchase the security if, in the opinion of the Adviser, the credit quality of
the security is deemed equivalent to the rated securities mentioned above.
The Fund may invest in short-term securities consisting of: obligations issued
or guaranteed by the U.S. Government, its agencies or instrumentalities;
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Scudder Cash Investment Trust (cont'd)
obligations of supranational organizations such as the International Bank for
Reconstruction and Development (the World Bank); obligations of domestic banks
and foreign branches of domestic banks, including bankers' acceptances,
certificates of deposit, deposit notes and time deposits; and obligations of
savings and loan institutions.
The Fund may also invest in: instruments whose credit has been enhanced by banks
(letters of credit), insurance companies (surety bonds) or other corporate
entities (corporate guarantees); corporate obligations, including commercial
paper, notes, bonds, loans and loan participations; securities with variable or
floating interest rates; asset-backed securities, including certificates,
participations and notes; and municipal securities, including notes, bonds and
participation interests, either taxable or tax free.
In addition, the Fund may invest in repurchase agreements and securities with
put features.
Each of the above referenced eligible investments and investment practices have
certain risks associated with them. For a more complete description, please
refer to the Fund's Statement of Additional Information.
Why invest in the Fund?
The Fund can be appropriate for investors who are concerned about stability of
principal. If investors are just starting out and want their assets to grow in a
stable investment, if they want to keep their nest egg safe and handy, or if
they are simply looking to "park" their investment capital for a short time, a
money market fund may be a good choice.
One appealing characteristic of a money market fund is that it seeks to maintain
a stable share price. Thus, not only should investors have the value of their
initial investment maintained, they ordinarily will have earnings on that
investment, plus earnings on those earnings, if dividends are reinvested.
In general, the level of income from a money market fund is affected by the
quality of the Fund's investments. The Fund invests in a broad range of money
market securities which are of high quality.
Another important feature of the Fund is daily liquidity. Investors can gain
access to their cash by toll-free telephone redemption or with our convenient
check writing option. Shareholders may write checks of at least $100.
Special risk considerations
Global investing involves economic and political considerations not typically
found in U.S. markets. These considerations include changes in exchange rates
and exchange rate controls (which may include suspension of the ability to
transfer currency from a given country), costs incurred in conversions between
currencies, non-negotiable brokerage commissions, less publicly available
information, different accounting standards, lower trading volume and greater
market volatility, the difficulty of enforcing obligations in other countries,
less securities regulation, different tax provisions (including withholding on
dividends paid to a Fund), war, expropriation, political and social instability,
and diplomatic developments.
Further, the settlement period of securities transactions in foreign markets may
be longer than in domestic markets. These considerations generally are more of a
concern in developing countries. For example, the possibility of revolution and
the dependence on foreign economic assistance may be greater in these countries
than in developed countries. The Adviser seeks to mitigate the risks associated
with these considerations through diversification and active professional
management.
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Purchases of foreign securities are usually made in foreign currencies and, as a
result, a Fund may incur currency conversion costs and may be affected favorably
or unfavorably by changes in the value of foreign currencies against the U.S.
dollar. Further, it may be more difficult for a Fund's agents to keep currently
informed about corporate actions which may affect the prices of portfolio
securities. Communications between the U.S. and foreign countries may be less
reliable than within the U.S., thus increasing the risk of delayed settlements
of portfolio transactions or loss of certificates for portfolio securities. A
Fund's ability and decisions to purchase and sell portfolio securities may be
affected by laws or regulations relating to the convertibility and repatriation
of assets. Some countries restrict the extent to which foreigners may invest in
their securities markets.
Scudder Global Fund is designed for long-term investors who can accept
international investment risk. Since the Fund normally will be invested in both
U.S. and foreign securities markets, changes in the Fund's share price may have
a low correlation with movements in the U.S. markets. The Fund's share price
will reflect the movements of both the different stock and bond markets in which
it is invested and the currencies in which the investments are denominated; the
strength or weakness of the U.S. dollar against foreign currencies may account
for part of the Fund's investment performance. As with any long-term investment,
the value of shares when sold may be higher or lower than when purchased.
Because of the Fund's global investment policies and the investment
considerations discussed above, investment in shares of the Fund should not be
considered a complete investment program.
While both Scudder Short Term Bond Fund and Scudder Growth and Income Fund each
generally emphasize investments in U.S. Government securities and companies
domiciled in the U.S., each may invest in foreign securities that meet the same
criteria as each Fund's domestic holdings when the anticipated performance of
foreign securities is believed by the Adviser to offer more potential than
domestic alternatives in keeping with the investment objective of each Fund.
Foreign securities may be denominated either in U.S. dollars or foreign
currencies. Scudder Global Fund, Scudder Growth and Income Fund and Scudder
Short Term Bond Fund may each enter into forward foreign currency exchange
contracts in connection with the purchase and sale of securities denominated in
a foreign currency.
Additional information about policies and investments
Investment restrictions
Each Fund has adopted certain fundamental policies which may not be changed
without a vote of shareholders and which are designed to reduce the Funds'
investment risk.
Each Fund may not borrow money except as a temporary measure for extraordinary
or emergency purposes and, in the case of Scudder Short Term Bond Fund, except
in connection with reverse repurchase agreements. Each Fund may not make loans
except through the lending of portfolio securities, the purchase of debt
securities or through repurchase agreements.
In addition, as a matter of nonfundamental policy, Scudder Global Fund, Scudder
Growth and Income Fund and Scudder Short Term Bond Fund each may not invest more
than 10% of its total assets, in the aggregate, in securities which are not
readily marketable, restricted securities and repurchase agreements maturing in
more than seven days.
Scudder Cash Investment Trust, as a matter of nonfundamental policy, may not
invest more than 10% of its net assets, in the aggregate, in securities which
are not readily marketable, restricted securities and repurchase agreements
maturing in more than seven days. The Fund may not invest more than 5% of its
total assets in restricted securities.
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Additional information about policies and investments (cont'd)
Scudder Cash Investment Trust, with certain limited exceptions, may not invest
more than 5% of its total assets in the securities of a single issuer, or
subject to puts from any one issuer, except U.S. Government securities, and may
not invest more than 10% of its total assets in securities subject to
unconditional puts by a single issuer.
A complete description of these and other policies and restrictions is contained
under "Investment Restrictions" in each Fund's Statement of Additional
Information.
The high quality securities in which Scudder Cash Investment Trust invests are
divided into "first tier" and "second tier" securities. First tier securities
are those securities generally rated in the highest category by at least two
rating agencies (or one, if only one rating agency has rated the security).
Securities which are generally rated in the two highest categories by at least
two rating agencies (or one, if only one rating agency has rated the security)
and which do not qualify as first tier securities are second tier securities.
The Adviser may determine, pursuant to procedures approved by the Trustees, that
an unrated security is equivalent to a first tier or second tier security. The
Fund will not invest more than 5% of its total assets in second tier securities
or more than 1% of its total assets in second tier securities of a single
issuer.
Securities lending
Scudder Growth and Income Fund may lend portfolio securities to registered
broker/dealers as a means of increasing its income. These loans may not exceed
33 1/3% of the Fund's total assets taken at market value. Loans of portfolio
securities will be secured continuously by collateral consisting of U.S.
Government securities or fixed-income obligations that are maintained at all
times in an amount at least equal to the current market value of the loaned
securities. The Fund will earn any interest or dividends paid on the loaned
securities and may share with the borrower some of the income received on the
collateral for the loan or will be paid a premium for the loan.
Convertible securities
Each of the Funds, with the exception of Scudder Cash Investment Trust, may
invest in convertible securities which may offer higher income than the common
stocks into which they are convertible. The convertible securities in which the
Funds may invest include fixed-income or zero coupon debt securities which may
be converted or exchanged at a stated or determinable exchange ratio into
underlying shares of common stock. Prior to their conversion, convertible
securities may have characteristics similar to both nonconvertible debt
securities and equity securities.
Portfolio turnover rate
Scudder Short Term Bond Fund's active management of mortgage holdings in 1995
resulted in a higher portfolio turnover rate. A higher rate involves greater
transaction costs to the Fund and may result in the realization of net capital
gains, which would be taxable to shareholders when distributed.
When-issued securities
Scudder Short Term Bond Fund may purchase securities on a when-issued or forward
delivery basis, for payment and delivery at a later date. The price and yield
are generally fixed on the date of commitment to purchase. During the period
between purchase and settlement, no interest accrues to the Fund. At the time of
settlement, the market value of the security may be more or less than the
purchase price.
Repurchase agreements
As a means of earning income for periods as short as overnight, each Fund may
enter into repurchase agreements with selected banks and broker/dealers. Under a
repurchase agreement, a Fund acquires securities, subject to the seller's
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agreement to repurchase them at a specified time and price.
Scudder Short Term Bond Fund may enter into repurchase commitments with any
party deemed creditworthy by the Adviser, including foreign banks and
broker/dealers, if the transaction is entered into for investment purposes and
the counterparty's creditworthiness is at least equal to that of issuers of
securities which the Fund may purchase.
Mortgage and other asset-backed securities
Scudder Short Term Bond Fund may invest in mortgage-backed securities, which are
securities representing interests in pools of mortgage loans. These securities
provide shareholders with payments consisting of both interest and principal as
the mortgages in the underlying mortgage pools are paid off.
The timely payment of principal and interest on mortgage-backed securities
issued or guaranteed by the Government National Mortgage Association ("GNMA") is
backed by GNMA and the full faith and credit of the U.S. Government. These
guarantees, however, do not apply to the market value or yield of
mortgage-backed securities or to the value of Fund shares. Also, GNMA and other
mortgage-backed securities may be purchased at a premium over the maturity value
of the underlying mortgages. This premium is not guaranteed and will be lost if
prepayment occurs. In addition, the Fund may invest in mortgage-backed
securities issued by other issuers, such as the Federal National Mortgage
Association (FNMA), which are not guaranteed by the U.S. Government. Moreover,
the Fund may invest in debt securities which are secured with collateral
consisting of mortgage-backed securities and in other types of mortgage-related
securities.
The Fund may also invest in securities representing interests in pools of
certain other consumer loans, such as automobile loans or credit card
receivables. In some cases, principal and interest payments are partially
guaranteed by a letter of credit from a financial institution.
Dollar roll transactions
Scudder Short Term Bond Fund may enter into dollar roll transactions with
selected banks and broker/dealers. Dollar roll transactions are treated as
reverse repurchase agreements for purposes of the Fund's borrowing restrictions
and consist of the sale by the Fund of mortgage- backed securities, together
with a commitment to purchase similar, but not identical, securities at a future
date at the same price. In addition, the Fund receives compensation as
consideration for entering into the commitment to repurchase. The compensation
is paid in the form of a fee. Dollar rolls may be renewed after cash settlement
and initially may involve only a firm commitment agreement by the Fund to buy
the security.
Indexed securities
Scudder Short Term Bond Fund may invest in indexed securities, the value of
which is linked to currencies, interest rates, commodities, indices or other
financial indicators ("reference instruments"). The interest rate or (unlike
most fixed-income securities) the principal amount payable at maturity of an
indexed security may be increased or decreased, depending on changes in the
value of the reference instrument.
Strategic Transactions and derivatives
Each of the Funds, with the exception of Scudder Cash Investment Trust, may, but
is not required to, utilize various other investment strategies as described
below to hedge various market risks (such as interest rates, currency exchange
rates, and broad or specific equity or fixed-income market movements), to manage
the effective maturity or duration of the fixed-income securities in the Funds'
portfolios or to enhance potential gain. These strategies may be executed
through the use of derivative contracts. Such strategies are generally accepted
as a part of modern portfolio management and are regularly utilized by many
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Additional information about policies and investments (cont'd)
mutual funds and other institutional investors. Techniques and instruments may
change over time as new instruments and strategies are developed or regulatory
changes occur.
In the course of pursuing these investment strategies, the Funds may purchase
and sell exchange-listed and over-the-counter put and call options on
securities, equity and fixed-income indices and other financial instruments,
purchase and sell financial futures contracts and options thereon, enter into
various interest rate transactions such as swaps, caps, floors or collars and
enter into various currency transactions such as currency forward contracts,
currency futures contracts, currency swaps or options on currencies or currency
futures (collectively, all the above are called "Strategic Transactions").
Strategic Transactions may be used without limit to attempt to protect against
possible changes in the market value of securities held in or to be purchased
for the Funds' portfolios resulting from securities markets or currency exchange
rate fluctuations, to protect the Funds' unrealized gains in the value of its
portfolio securities, to facilitate the sale of such securities for investment
purposes, to manage the effective maturity or duration of fixed-income
securities in the Funds' portfolios, or to establish a position in the
derivatives markets as a temporary substitute for purchasing or selling
particular securities. Some Strategic Transactions may also be used to enhance
potential gain although no more than 5% of the Funds' assets will be committed
to Strategic Transactions entered into for non-hedging purposes. Any or all of
these investment techniques may be used at any time and in any combination, and
there is no particular strategy that dictates the use of one technique rather
than another, as use of any Strategic Transaction is a function of numerous
variables including market conditions. The ability of the Funds to utilize these
Strategic Transactions successfully will depend on the Adviser's ability to
predict pertinent market movements, which cannot be assured. The Funds will
comply with applicable regulatory requirements when implementing these
strategies, techniques and instruments. Strategic Transactions involving
financial futures and options thereon will be purchased, sold or entered into
only for bona fide hedging, risk management or portfolio management purposes and
not for speculative purposes. Please refer to "Risk factors--Strategic
Transactions and derivatives" for more information.
Risk factors
Each Fund's risks are determined by the nature of the securities held and the
portfolio management strategies used by the Adviser. The following are
descriptions of certain risks related to the investments and techniques that a
Fund may use from time to time.
Convertible securities. While convertible securities generally offer lower
yields than nonconvertible debt securities of similar quality, their prices may
reflect changes in the value of the underlying common stock. Convertible
securities entail less credit risk than the issuer's common stock.
Debt securities. Securities rated BBB by S&P or Baa by Moody's are neither
highly protected nor poorly secured. These securities normally pay higher yields
but involve potentially greater price variability than higher-quality
securities. These securities are regarded as having adequate capacity to repay
principal and pay interest, although adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to do so. Moody's
considers bonds it rates Baa to have speculative elements as well as
investment-grade characteristics.
Scudder Global Fund may invest no more than 5% of its total assets in debt
securities which are rated BBB or Baa or below or in unrated securities.
Securities rated below BBB/Baa are commonly referred to as "junk bonds."
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The lower the quality of such debt securities, the greater their risks render
them like equity securities. The Fund may invest in securities which are rated
as low as C by Moody's or D by S&P at the time of purchase. Such securities may
be in default with respect to payment of principal or interest.
Securities lending. From time to time, the Fund may lend its portfolio
securities to registered broker/dealers as described above. The risks of lending
portfolio securities, as with other extensions of secured credit, consist of
possible delays in receiving additional collateral or in the recovery of the
securities or possible loss of rights in the collateral should the borrower fail
financially. Loans will be made to registered broker/dealers deemed by the
Adviser to be of good standing and will not be made unless, in the judgment of
the Adviser, the consideration to be earned from such loans will justify the
risk.
Zero coupon securities. Zero coupon securities are subject to greater market
value fluctuations from changing interest rates than debt obligations of
comparable maturities that make current cash distributions of interest.
Repurchase agreements. If the seller under a repurchase agreement becomes
insolvent, the Fund's right to dispose of the securities may be restricted, or
the value of the securities may decline before the Fund is able to dispose of
them. In the event of the commencement of bankruptcy or insolvency proceedings
with respect to the sellers of the securities before repurchase under a
repurchase agreement, the Fund may encounter delay and incur costs including a
decline in the value of the securities, before being able to sell the
securities.
Some repurchase commitment transactions may not provide the Fund with collateral
marked-to-market during the term of the commitment.
Mortgage-backed securities. Unscheduled or early payments on the underlying
mortgages may shorten the securities' effective maturities and lessen their
growth potential. The Fund may agree to purchase or sell these securities with
payment and delivery taking place at a future date. A decline in interest rates
may lead to a faster rate of repayment of the underlying mortgages and expose
the Fund to a lower rate of return upon reinvestment. To the extent that such
mortgage-backed securities are held by the Fund, the prepayment right of
mortgagors may limit the increase in net asset value of the Fund because the
value of the mortgage-backed securities held by the Fund may not appreciate as
rapidly as the price of non-callable debt securities.
Other asset-backed securities. In addition to prepayment risk, securities
representing pools of certain consumer loans present certain risks that are not
presented by mortgage-backed securities. These securities may not have the
benefit of any security interest in the underlying assets. Also, there is the
possibility that recoveries on repossessed collateral may not, in some cases, be
available to support payments on these securities.
Dollar roll transactions. If the broker/dealer to whom the Fund sells the
securities underlying a dollar roll transaction becomes insolvent, the Fund's
right to purchase or repurchase the securities may be restricted; the value of
the securities may change adversely over the term of the dollar roll; the
securities that the Fund is required to repurchase may be worth less than the
securities that the Fund originally held, and the return earned by the Fund with
the proceeds of a dollar roll may not exceed transaction costs.
Indexed securities. Indexed securities may be positively or negatively indexed,
so that appreciation of the reference instrument may produce an increase or a
decrease in the interest rate or value at maturity of the security. In addition,
the change in the interest rate or value at maturity of the security may be some
multiple of the change in the value of the reference instrument. Thus, in
addition to the credit risk of the security's issuer, the Fund will bear the
(Continued on page 22)
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Purchases
<TABLE>
<S> <C>
Opening Minimum initial investment: $1,000; IRAs $500
an account Group retirement plans (401(k), 403(b), etc.) have similar or lower minimums.
See appropriate plan literature.
Make checks o By Mail Send your completed and signed application and check
payable to "The
Scudder Funds."
by regular mail to: or by express, registered,
or certified mail to:
The Scudder Funds Scudder Shareholder Service
P.O. Box 2291 Center
Boston, MA 42 Longwater Drive
02107-2291 Norwell, MA
02061-1612
o By Wire Please see Transaction information--Purchasing shares--By
wire for details, including the ABA wire transfer number.
Then call 1-800-225-5163 for instructions.
o In Person Visit one of our Funds Centers to complete your application with the help
of a Scudder representative. Funds Center locations are listed under
Shareholder benefits.
-----------------------------------------------------------------------------------------------------------------------
Purchasing Minimum additional investment: $100; IRAs $50
additional shares Group retirement plans (401(k), 403(b), etc.) have similar or lower minimums.
See appropriate plan literature.
Make checks o By Mail Send a check with a Scudder investment slip, or with a letter of
payable to "The instruction including your account number and the
Scudder Funds." complete Fund name, to the appropriate address listed above.
o By Wire Please see Transaction information--Purchasing shares--By
wire for details, including the ABA wire transfer number.
o In Person Visit one of our Funds Centers to make an additional
investment in your Scudder fund account. Funds Center locations are
listed under Shareholder benefits.
o By Telephone Please see Transaction information--Purchasing shares--By
AutoBuy or By telephone order for more details.
o By Automatic You may arrange to make investments on a
Investment Plan regular basis through automatic deductions
($50 minimum) from your bank checking account. Please call
1-800-225-5163 for more information and an enrollment form.
</TABLE>
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Exchanges and redemptions
<TABLE>
<S> <C>
Exchanging Minimum investments: $1,000 to establish a new account;
shares $100 to exchange among existing accounts
o By Telephone To speak with a service representative, call 1-800-225-5163 from
8 a.m. to 8 p.m. eastern time or to access SAIL(TM), Scudder's Automated
Information Line, call 1-800-343-2890 (24 hours a day).
o By Mail Print or type your instructions and include:
or Fax - the name of the Fund and the account number you are exchanging from;
- your name(s) and address as they appear on your account;
- the dollar amount or number of shares you wish to exchange;
- the name of the Fund you are exchanging into;
- your signature(s) as it appears on your account; and
- a daytime telephone number.
Send your instructions
by regular mail to: or by express, registered, or by fax to:
or certified mail to:
The Scudder Funds Scudder Shareholder 1-800-821-6234
P.O. Box 2291 Service Center
Boston, MA 02107-2291 42 Longwater Drive
Norwell, MA
02061-1612
-----------------------------------------------------------------------------------------------------------------------
Redeeming shares o By Telephone To speak with a service representative,
call 1-800-225-5163 from 8 a.m. to 8 p.m.
eastern time or to access SAIL(TM),
Scudder's Automated Information Line, call
1-800-343-2890 (24 hours a day). You may
have redemption proceeds sent to your
predesignated bank account, or redemption
proceeds of up to $50,000 sent to your
address of record.
o By "Write- You may redeem shares of Scudder Cash Investment Trust and Scudder
A-Check" Short term Bond Fund by writing checks against your account balance
as often as you like for at least $100, but not more than $5,000,000.
o By Mail Send your instructions for redemption to the appropriate address or fax number
or Fax above and include:
- the name of the Fund and account number you are redeeming from;
- your name(s) and address as they appear on your account;
- the dollar amount or number of shares you wish to redeem;
- your signature(s) as it appears on your account; and
- a daytime telephone number.
A signature guarantee is required for
redemptions over $50,000. See Transaction
information--Redeeming shares.
o By Automatic You may arrange to receive automatic cash payments periodically.
Withdrawal Call 1-800-225-5163 for more information and an enrollment form.
Plan
</TABLE>
21
<PAGE>
Additional information about policies and investments (cont'd)
(Continued from page 19)
market risk of the reference instrument.
Illiquid investments. The absence of a trading market can make it difficult to
ascertain a market value for illiquid investments. Disposing of illiquid
investments may involve time-consuming negotiation and legal expenses, and it
may be difficult or impossible for a Fund to sell them promptly at an acceptable
price.
Strategic Transactions and derivatives. Strategic Transactions, including
derivative contracts, have risks associated with them including possible default
by the other party to the transaction, illiquidity and, to the extent the
Adviser's view as to certain market movements is incorrect, the risk that the
use of such Strategic Transactions could result in losses greater than if they
had not been used. Use of put and call options may result in losses to a Fund,
force the sale or purchase of portfolio securities at inopportune times or for
prices higher than (in the case of put options) or lower than (in the case of
call options) current market values, limit the amount of appreciation a Fund can
realize on its investments or cause a Fund to hold a security it might otherwise
sell.
The use of currency transactions can result in a Fund incurring losses as a
result of a number of factors including the imposition of exchange controls,
suspension of settlements or the inability to deliver or receive a specified
currency. The use of options and futures transactions entails certain other
risks. In particular, the variable degree of correlation between price movements
of futures contracts and price movements in the related portfolio position of a
Fund creates the possibility that losses on the hedging instrument may be
greater than gains in the value of a Fund's position.
In addition, futures and options markets may not be liquid in all circumstances
and certain over-the-counter options may have no markets. As a result, in
certain markets, a Fund might not be able to close out a transaction without
incurring substantial losses, if at all. Although the use of futures contracts
and options transactions for hedging should tend to minimize the risk of loss
due to a decline in the value of the hedged position, at the same time they tend
to limit any potential gain which might result from an increase in value of such
position.
Finally, the daily variation margin requirements for futures contracts would
create a greater ongoing potential financial risk than would purchases of
options, where the exposure is limited to the cost of the initial premium.
Losses resulting from the use of Strategic Transactions would reduce net asset
value, and possibly income, and such losses can be greater than if the Strategic
Transactions had not been utilized. The Strategic Transactions that Scudder
Global Fund, Scudder Growth and Income Fund and Scudder Short Term Bond Fund may
use and some of their risks are described more fully in each Fund's Statement of
Additional Information.
Distribution and performance information
Dividends and capital gains distributions
Scudder Global Fund intends to distribute any dividends from net investment
income, if any, in November or December. Scudder Growth and Income Fund intends
to distribute dividends from its net investment income quarterly in April, July,
October and December. Scudder Short Term Bond Fund's dividends from net
investment income and Scudder Cash Investment Trust's dividends from net
investment income are declared daily and distributed monthly to shareholders.
Scudder Cash Investment Trust may take into account capital gains and losses
(other than long-term capital gains) in its daily dividend declaration. The Fund
may make additional distributions for tax purposes, if necessary.
22
<PAGE>
Each Fund intends to distribute any net realized capital gains after utilization
of capital loss carryforwards, if any, in November or December to prevent
application of a federal excise tax. An additional distribution may be made
within three months of each Fund's fiscal year end, if necessary.
Any dividends or capital gains distributions declared in October, November or
December with a record date in such a month and paid during the following
January will be treated by shareholders for federal income tax purposes as if
received on December 31 of the calendar year declared.
According to preference, shareholders may receive distributions in cash or have
them reinvested in additional shares of the Fund. If an investment is in the
form of a retirement plan, all dividends and capital gains distributions must be
reinvested into the shareholder's account.
Generally, dividends from net investment income are taxable to shareholders as
ordinary income. Long-term capital gains distributions, if any, are taxable as
long-term capital gains regardless of the length of time shareholders have owned
their shares. Short-term capital gains and any other taxable income
distributions are taxable as ordinary income. A portion of dividends from net
investment income distributed by Scudder Global Fund and Scudder Growth and
Income Fund may qualify for the dividends-received deduction for corporations.
Shareholders of Scudder Global Fund may be able to claim a credit or deduction
on their income tax returns for their pro rata portions of qualified taxes paid
by the Fund to foreign countries.
The Fund sends detailed tax information about the amount and type of its
distributions to its shareholders by January 31 of the following year.
Performance information
From time to time, quotations of a Fund's performance may be included in
advertisements, sales literature or shareholder reports. All performance figures
are historical, show the performance of a hypothetical investment and are not
intended to indicate future performance. "Total return" is the change in value
of an investment in a Fund for a specified period. The "average annual total
return" of a Fund is the average annual compound rate of return of an investment
in a Fund assuming that the investment has been held for one year, five years
and ten years as of a stated ending date. (If a Fund has not been in operation
for at least ten years, the life of the Fund will be used where applicable.)
"Cumulative total return" represents the cumulative change in value of an
investment in a Fund for various periods. All types of total return calculations
assume that all dividends and capital gains distributions during the period were
reinvested in shares of a Fund.
Performance for any of the four Funds will vary based upon, among other things,
changes in market conditions and the level of the Funds' expenses.
The "capital change" for Scudder Global Fund and Scudder Growth and Income Fund
measures return from capital, including reinvestment of any capital gains
distributions but does not include the reinvestment of dividends.
The "SEC yield" of Scudder Short Term Bond Fund is an annualized expression of
the net income generated by the Fund over a specified 30-day (one month) period,
as a percentage of the Fund's share price on the last day of that period. This
yield is calculated according to methods required by the Securities and Exchange
Commission (the "SEC"), and therefore may not equate to the level of income paid
to shareholders. The "yield" of Scudder Cash Investment Trust refers to the
income generated by an investment in the Fund over a specified seven-day period.
The "effective yield" of Scudder Cash Investment Trust is expressed similarly
but, when annualized, the income earned by an investment in the Fund is assumed
to be reinvested and will reflect the effects of compounding.
23
<PAGE>
Fund organization
Each Fund is a diversified, open-end management investment company registered
under the Investment Company Act of 1940 (the "1940 Act"). Scudder Global Fund's
activities are supervised by its Board of Directors. Scudder Growth and Income
Fund, Scudder Short Term Bond Fund and Scudder Cash Investment Trust's
activities are supervised by their respective Boards of Trustees. Shareholders
have one vote for each share held on matters on which they are entitled to vote.
The Funds are not required to and have no current intention of holding annual
shareholder meetings, although special meetings may be called for purposes such
as electing or removing Directors or Trustees, changing fundamental investment
policies or approving an investment management or advisory contract.
Shareholders will be assisted in communicating with other shareholders in
connection with removing a Director or a Trustee as if Section 16(c) of the 1940
Act were applicable.
The prospectuses of the Funds are combined in this prospectus. Each Fund offers
only its own shares, yet it is possible that a Fund might become liable for a
misstatement regarding another Fund. The Directors and Trustees of each Fund
have considered this and approved the use of a combined prospectus.
Scudder Global Fund
Scudder Global Fund is a series of Scudder Global Fund, Inc., a Maryland
corporation which was organized in May 1986.
Scudder Growth and Income Fund
Scudder Growth and Income Fund is a series of Scudder Investment Trust. The
Trust, formerly known as Scudder Growth and Income Fund, was organized as a
Massachusetts business trust in September 1984 and on December 31, 1984 assumed
the business of its predecessor, which was organized as a Massachusetts
corporation in May 1929.
Scudder Short Term Bond Fund
Scudder Short Term Bond Fund is a series of Scudder Funds Trust. The Trust was
organized as a Massachusetts business trust in July 1981 and changed its name
from Scudder Target Fund to its current name effective July 3, 1989. The Fund's
name and investment objective also were changed to the current ones effective
July 3, 1989.
Scudder Cash Investment Trust
Scudder Cash Investment Trust was organized as a Massachusetts business trust in
December 1975.
Investment adviser
Each Fund retains the investment management firm of Scudder, Stevens & Clark,
Inc., a Delaware corporation, to manage the daily investment and business
affairs subject to the policies established by the respective Board of Directors
or Boards of Trustees. The Directors have overall responsibility for the
management of Scudder Global Fund under Maryland law. The Trustees have overall
responsibility for the management of Scudder Growth and Income Fund, Scudder
Short Term Bond Fund and Scudder Cash Investment Trust under Massachusetts law.
Each Fund pays the Adviser an investment management or an advisory fee which are
graduated so that increases in a Fund's net assets may result in a lower average
fee rate and decreases in a Fund's net assets may result in a higher average fee
rate.
Each Fund's fee is payable monthly, provided that a Fund will make such interim
payments as may be requested by the Adviser not to exceed 75% of the amount of
the fee then accrued on the books of the Fund and unpaid.
For Scudder Global Fund, the Adviser receives an investment management fee for
these services equal, on an annual basis, to 1.00% of the first $500 million of
average daily net assets, 0.95% of such assets in excess of $500 million and
0.90% of such assets in excess of $1 billion. Prior to September 6, 1995, the
Adviser received on an annual basis, an investment management fee for its
24
<PAGE>
services equal to 1.00% of the first $500 million of average daily net assets
and 0.95% of such assets in excess of $500 million.
For Scudder Growth and Income Fund, the Adviser receives an investment
management fee for these services equal, on an annual basis, to 0.60% of the
first $500 million of average daily net assets, 0.55% of such assets in excess
of $500 million, 0.50% of such assets in excess of $1 billion, 0.475% of such
assets in excess of $1.5 billion and 0.45% of such assets in excess of $2
billion. From August 9, 1994 to August 7, 1995 the management fee for the
portion of the Fund's assets over $2 billion was 0.475%. During this time all
other management fees were at their current rate.
For the fiscal year ended December 31, 1995, the Adviser received an investment
management fee of 0.52% of Scudder Growth and Income Fund's average daily net
assets and 0.49% of Scudder Short Term Bond Fund's average daily net assets.
For the fiscal year ended June 30, 1995, the Adviser received an investment
advisory fee of 0.97% of Scudder Global Fund's average daily net assets and
0.41% of Scudder Cash Investment Trust's average daily net assets.
All of a Fund's expenses are paid out of gross investment income. Shareholders
pay no direct charges or fees for investment or administrative services.
Scudder, Stevens & Clark, Inc. manages Scudder Global Fund and Scudder Short
Term Bond Fund from its location at 345 Park Avenue, New York, New York.
Scudder, Stevens & Clark, Inc. manages Scudder Growth and Income Fund and
Scudder Cash Investment Trust from its location at Two International Place,
Boston, Massachusetts.
Transfer agent
Scudder Service Corporation, P.O. Box 2291, Boston, Massachusetts 02107-2291, a
subsidiary of the Adviser, is the transfer, shareholder servicing and
dividend-paying agent for the Funds.
Underwriter
Scudder Investor Services, Inc., a subsidiary of the Adviser, is the Funds'
principal underwriter. Scudder Investor Services, Inc. confirms, as agent, all
purchases of shares of the Funds. Scudder Investor Relations is a telephone
information service provided by Scudder Investor Services, Inc.
Custodian
State Street Bank and Trust Company is the custodian for each of the Funds.
Fund accounting agent
Scudder Fund Accounting Corporation, a subsidiary of the Adviser, is responsible
for determining the daily net asset value per share and maintaining the general
accounting records of the Funds.
Transaction information
Purchasing shares
Purchases are executed at the next calculated net asset value per share after
the Funds' transfer agent receives the purchase request in good order. Purchases
are made in full and fractional shares. (See "Share price.")
By check. If you purchase shares with a check that does not clear, your purchase
will be canceled and you will be subject to any losses or fees incurred in the
transaction. Checks must be drawn on or payable through a U.S. bank. If you
purchase shares by check and redeem them within seven business days of purchase,
each Fund may hold redemption proceeds until the purchase check has cleared. If
you purchase shares by federal funds wire, you may avoid this delay. Redemption
requests by telephone, or by "Write-A-Check" for Scudder Short Term Bond Fund
and Scudder Cash Investment Trust, prior to the expiration of the seven-day
period will not be accepted.
25
<PAGE>
Transaction information (cont'd)
By wire. To open a new account by wire, first call Scudder at 1-800-225-5163 to
obtain an account number. A representative will instruct you to send a
completed, signed application to the transfer agent. Accounts cannot be opened
without a completed, signed application and a Scudder fund account number.
Contact your bank to arrange a wire transfer to:
The Scudder Funds
State Street Bank and Trust Company
Boston, MA 02101
ABA Number 011000028
DDA Account 9903-5552
Your wire instructions must also include:
- -- the name of the fund in which the money is to be invested,
- -- the account number of the fund, and
- -- the name(s) of the account holder(s).
The account will be established once the application and money order are
received in good order.
You may also make additional investments of $100 or more to your existing
account by wire.
By exchange. Your new account will have the same registration and address as
your existing account.
The exchange requirements for corporations, other organizations, trusts,
fiduciaries, agents, institutional investors and retirement plans may be
different from those for regular accounts.
Please call 1-800-225-5163 for more information, including information about the
transfer of special account features.
You can also make exchanges among your Scudder fund accounts on SAIL, the
Scudder Automated Information Line, by calling 1-800-343-2890.
By telephone order. Existing shareholders of Scudder Global Fund and Scudder
Growth and Income Fund may purchase shares at a certain day's price by calling
1-800-225-5163 before the close of regular trading on the New York Stock
Exchange (the "Exchange"), normally 4 p.m. eastern time, on that day. Orders
must be for $10,000 or more and cannot be for an amount greater than four times
the value of your account at the time the order is placed. A confirmation with
complete purchase information is sent shortly after your order is received. You
must include with your payment the order number given at the time the order is
placed. If payment by check or wire is not received within three business days,
the order is subject to cancellation and the shareholder will be responsible for
any loss to a Fund resulting from this cancellation. Telephone orders are not
available for shares held in Scudder IRA accounts and most other Scudder
retirement plan accounts.
For Scudder Short Term Bond Fund, certain financial institutions may call
Scudder before the close of regular trading on the Exchange, normally 4 p.m.
eastern time, and purchase shares at that day's price. Such purchased shares
will begin to earn dividends on the day on which the payment is received by the
Fund. If payment by check or wire is not received from the financial institution
within three business days, the order is subject to cancellation and the
financial institution will be responsible for any loss to the Fund resulting
from this cancellation. Please call 1-800-854-8525 for more information.
By "AutoBuy." If you elected "AutoBuy" for your account, you can call toll-free
to purchase shares. The money will be automatically transferred from your
predesignated bank checking account. Your bank must be a member of the Automated
Clearing House for you to use this service. If you did not elect "AutoBuy," call
1-800-225-5163 for more information.
26
<PAGE>
To purchase additional shares, call 1-800-225-5163. Purchases must be for at
least $250 but not more than $250,000. Proceeds in the amount of your purchase
will be transferred from your bank checking account in two or three business
days following your call. For requests received by the close of regular trading
on the Exchange, shares will be purchased at the net asset value per share
calculated at the close of trading on the day of your call. Shares will begin to
earn dividends on the day the purchase payment from your bank is received by the
Fund. "AutoBuy" requests received after the close of regular trading on the
Exchange will begin their processing and be purchased at the net asset value
calculated the following business day.
If you purchase shares by "AutoBuy" and redeem them within seven days of the
purchase, the Fund may hold the redemption proceeds for a period of up to seven
business days. If you purchase shares and there are insufficient funds in your
bank account, the purchase will be canceled and you will be subject to any
losses or fees incurred in the transaction. "AutoBuy" transactions are not
available for Scudder IRA accounts and most other retirement plan accounts.
Redeeming shares
Each Fund allows you to redeem shares (i.e., sell them back to the Fund) without
redemption fees.
By telephone. This is the quickest and easiest way to sell Fund shares. If you
elected telephone redemption to your bank on your application, you can call to
request that federal funds be sent to your authorized bank account. If you did
not elect telephone redemption to your bank on your application, call
1-800-225-5163 for more information.
Redemption proceeds will be wired to your bank unless otherwise requested. If
your bank cannot receive federal reserve wires, redemption proceeds will be
mailed to your bank. There will be a $5 charge for all wire redemptions.
You can also make redemptions from your Scudder fund account on SAIL by calling
1-800-343-2890.
If you open an account by wire, you cannot redeem shares by telephone until the
Funds' transfer agent has received your completed and signed application.
Telephone redemption is not available for shares held in Scudder IRA accounts
and most other Scudder retirement plan accounts.
In the event that you are unable to reach the Fund by telephone, you should
write to a Fund; see "How to contact Scudder" for the address.
By "Write-A-Check." You may redeem shares in Scudder Cash Investment Trust and
Scudder Short Term Bond Fund by writing checks against your account balance for
at least $100. Your Fund investments will continue to earn dividends until your
check is presented to a Fund for payment.
Checks will be returned by the Funds' transfer agent if there are insufficient
shares to meet the withdrawal amount. You should not attempt to close an account
by check because the exact balance at the time the check clears will not be
known when the check is written.
By "AutoSell." If you elected "AutoSell" for your account, you can call
toll-free to redeem shares. The money will be automatically transferred to your
predesignated bank checking account. Your bank must be a member of the Automated
Clearing House for you to use this service. If you did not elect "AutoSell,"
call 1-800-225-5163 for more information.
To redeem shares, call 1-800-225-5163. Redemptions must be for at least $250.
Proceeds in the amount of your redemption will be transferred to your bank
checking account in two or three business days following your call. For requests
received by the close of regular trading on the Exchange, shares will be
redeemed at the net asset value per share calculated at the close of trading on
the day of your call. "AutoSell" requests received after the close of regular
trading on the Exchange will begin their processing and be redeemed at the net
27
<PAGE>
Transaction information (cont'd)
asset value calculated the following business day.
"AutoSell" transactions are not available for Scudder IRA accounts and most
other retirement plan accounts.
Signature guarantees. For your protection and to prevent fraudulent redemptions,
on written redemption requests in excess of $50,000 we require an original
signature and an original signature guarantee for each person in whose name the
account is registered. (The Funds reserve the right, however, to require a
signature guarantee for all redemptions.) You can obtain a signature guarantee
from most banks, credit unions or savings associations, or from broker/dealers,
municipal securities broker/dealers, government securities broker/dealers,
national securities exchanges, registered securities associations or clearing
agencies deemed eligible by the Securities and Exchange Commission. Signature
guarantees by notaries public are not acceptable. Redemption requirements for
corporations, other organizations, trusts, fiduciaries, agents, institutional
investors and retirement plans may be different from those for regular accounts.
For more information, please call 1-800-225-5163.
Telephone transactions
Shareholders automatically receive the ability to exchange by telephone and the
right to redeem by telephone up to $50,000 to their address of record.
Shareholders also may, by telephone, request that redemption proceeds be sent to
a predesignated bank account. Each Fund uses procedures designed to give
reasonable assurance that telephone instructions are genuine, including
recording telephone calls, testing a caller's identity and sending written
confirmation of telephone transactions. If a Fund does not follow such
procedures, it may be liable for losses due to unauthorized or fraudulent
telephone instructions. Each Fund will not be liable for acting upon
instructions communicated by telephone that it reasonably believes to be
genuine.
Share price
Purchases and redemptions, including exchanges, are made at net asset value. For
Scudder Growth and Income Fund, Scudder Global Fund and Scudder Short Term Bond
Fund, Scudder Fund Accounting Corporation determines net asset value per share
as of the close of regular trading on the Exchange, normally 4 p.m. eastern
time, on each day the Exchange is open for trading.
In addition, for Scudder Cash Investment Trust, Scudder Fund Accounting
Corporation determines net asset value per share as of noon, and as of the close
of regular trading on the Exchange on each day the Exchange is open for trading.
Net asset value per share is calculated by dividing the value of total Fund
assets, less all liabilities, by the total number of shares outstanding. In
calculating the net asset value per share, each Fund uses the current market
value of the securities. However, for securities with 60 days or less to
maturity, Scudder Cash Investment Trust uses the amortized cost value.
Trading in securities on foreign securities exchanges is normally completed
before the close of regular trading on the Exchange. Trading on these foreign
exchanges may not take place on all days on which there is regular trading on
the Exchange, or may take place on days on which there is no regular trading on
the Exchange. If events materially affecting the value of a Fund's portfolio
securities occur between the time when these foreign exchanges close and the
time when a Fund's net asset value is calculated, such securities will be valued
at fair value as determined by each Trust's Board of Trustees or the
Corporation's Board of Directors.
28
<PAGE>
Processing time
All purchase and redemption requests must be received in good order by the
Fund's transfer agent.
For Scudder Global Fund and Scudder Growth and Income Fund, all purchase and
redemption requests received by the close of regular trading on the Exchange are
executed at the net asset value per share calculated at the close of regular
trading that day. Purchase and redemption requests received after the close of
regular trading on the Exchange will be executed the following business day.
For Scudder Short Term Bond Fund, purchase and redemption requests received by
the close of regular trading on the Exchange are executed at the net asset value
per share calculated at the close of trading that day. Purchase and redemption
requests received after the close of regular trading on the Exchange will be
executed the following business day. Purchases made by federal funds wire before
noon eastern time will begin earning income that day; all other purchases
received before the close of regular trading on the Exchange will begin earning
income the next business day. Redeemed shares will earn income on the day on
which the redemption request is executed.
For Scudder Cash Investment Trust, purchases made by wire and received by the
Fund's transfer agent before noon on any business day are executed at noon on
that day and begin earning income the same day. Those made by wire between noon
and the close of regular trading on the Exchange on any business day are
executed at the close of trading the same day and begin earning income the next
business day. Purchases made by check are executed on the day the check is
received in good order by the Fund's transfer agent and begin earning income on
the next business day. Redemption requests received in good order by the Fund's
transfer agent between noon and the close of regular trading on the Exchange are
executed at the net asset value calculated at the close of regular trading on
that day and will earn a dividend on the redeemed shares that day. If a
redemption request is received by noon, proceeds will normally be wired that
day, if requested by the shareholder, but no dividend will be earned on the
redeemed shares on that day.
Purchase and redemption requests received after the close of regular trading on
the Exchange will be executed the following business day.
If you wish to make a purchase of $500,000 or more, you should notify Scudder
Investor Relations by calling 1-800-225-5163.
Each Fund will normally send your redemption proceeds within one business day
following the redemption request, but may take up to seven business days (or
longer in the case of shares recently purchased by check).
Short-term trading
Purchases and sales of Scudder Global Fund and Scudder Growth and Income Fund
should be made for long-term investment purposes only. The Funds and Scudder
Investor Services, Inc. each reserve the right to restrict purchases of Fund
shares (including exchanges) when a pattern of frequent purchases and sales made
in response to short-term fluctuations in a Fund's share price appears evident.
Tax information
A redemption of shares, including an exchange into another Scudder fund, is a
sale of shares and may result in a gain or loss for income tax purposes.
Tax identification number
Be sure to complete the Tax Identification Number section of the application
when you open an account. Federal tax law requires a Fund to withhold 31% of
taxable dividends, capital gains distributions and redemption and exchange
proceeds from accounts (other than those of certain exempt payees) without a
certified Social Security or tax identification number and certain other
certified information or upon notification from the IRS or a broker that
withholding is required. Each Fund reserves the right to reject new account
29
<PAGE>
Transaction information (cont'd)
applications without a certified Social Security or tax identification number.
Each Fund also reserves the right, following 30 days' notice, to redeem all
shares in accounts without a certified Social Security or tax identification
number. A shareholder may avoid involuntary redemption by providing a Fund with
a tax identification number during the 30-day notice period.
Minimum balances
Shareholders should maintain a share balance worth at least $1,000, which amount
may be changed by each Fund's Board of Directors or Board of Trustees. Scudder
retirement plans have similar or lower minimum share balance requirements. Each
Fund reserves the right, following 60 days' written notice to shareholders, to
redeem all shares in sub-minimum accounts, including accounts of new investors,
where a reduction in value has occurred due to a redemption or exchange out of
the account. Reductions in value that result solely from market activity will
not trigger an involuntary redemption. Each Fund will mail the proceeds of the
redeemed account to the shareholder. The shareholder may restore the share
balance to $1,000 or more during the 60-day notice period and must maintain it
at no lower than that minimum to avoid involuntary redemption.
Third party transactions
If purchases and redemptions of Fund shares are arranged and settlement is made
at an investor's election through a member of the National Association of
Securities Dealers, Inc., other than Scudder Investor Services, Inc., that
member may, at its discretion, charge a fee for that service.
Redemption-in-kind
Scudder Global Fund and Scudder Growth and Income Fund each reserve the right,
if conditions exist which make cash payments undesirable, to honor any request
for distribution by making payment in whole or in part in readily marketable
securities chosen by each Fund and valued as they are for purposes of computing
each Fund's net asset value (a redemption-in-kind). If payment is made in
securities, a shareholder may incur transaction expenses in converting these
securities to cash. Each Fund has elected, however, to be governed by Rule 18f-1
under the 1940 Act as a result of which the Fund is obligated to redeem shares,
with respect to any one shareholder during any 90-day period, solely in cash up
to the lesser of $250,000 or 1% of the net asset value of each Fund at the
beginning of the period.
Shareholder benefits
Experienced professional management
Scudder, Stevens & Clark, Inc., one of the nation's most experienced investment
management firms, actively manages your Scudder fund investment. Professional
management is an important advantage for investors who do not have the time or
expertise to invest directly in individual securities.
A team approach to investing
Each Fund is managed by a team of Scudder investment professionals who each play
an important role in a Fund's management process. Team members work together to
develop investment strategies and select securities for each 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. Scudder believes its team approach benefits Fund
investors by bringing together many disciplines and leveraging Scudder's
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extensive resources.
Scudder Global Fund. Lead Portfolio Manager William E. Holzer has had day-to-day
responsibility for Scudder Global Fund's worldwide strategy and investment
themes since its inception in 1986. Mr. Holzer, who has over 20 years'
experience in global investing, joined Scudder in 1980. Nicholas Bratt,
Portfolio Manager, directs Scudder's overall global equity investment
strategies. Mr. Bratt joined Scudder in 1976 and the team in 1993. Alice Ho,
Portfolio Manager, joined the team in 1994 and is also responsible for
implementing the Fund's strategy. Ms. Ho, who joined Scudder in 1986 as a member
of the institutional and private investment counsel areas, has worked as a
portfolio manager since 1989.
Scudder Growth and Income Fund. Lead Portfolio Manager Robert T. Hoffman has had
responsibility for setting the Fund's stock investing strategy and overseeing
the Fund's day-to-day operations since 1991. Mr. Hoffman, who joined Scudder in
1990 as a portfolio manager, has 12 years of experience in the investment
industry, including several years of pension fund management experience.
Kathleen T. Millard, Portfolio Manager, has been involved in the investment
industry since 1983 and has worked as a portfolio manager since 1986. Ms.
Millard, who joined the team and Scudder in 1991, focuses on strategy and stock
selection. Benjamin W. Thorndike, Portfolio Manager, is the Fund's chief analyst
and strategist for convertible securities. Mr. Thorndike, who has 17 years of
investment experience, joined Scudder in 1983 as a portfolio manager and the
Fund in 1986. Lori Ensinger, Portfolio Manager, joined the Fund in 1996 and
focuses on stock selection and investment strategy. Ms. Ensinger has worked in
the investment industry since 1983 and at Scudder since 1993. G. Todd Silva,
Portfolio Manager, has focused on stock selection and investment strategy since
joining the Fund in 1996. Mr. Silva, who joined Scudder in 1993, has over six
years of investment experience.
Scudder Short Term Bond Fund. Since the Fund was introduced in 1989, Lead
Portfolio Manager Thomas M. Poor has had responsibility for its day-to-day
operation. Mr. Poor, who joined Scudder in 1970, sets the Fund's general
investment strategies. Christopher L. Gootkind, Portfolio Manager, also has been
a member of the Fund's team since its inception. Mr. Gootkind, who has worked as
a portfolio manager at Scudder since 1986, has responsibility for the Fund's
investments in financial institutions and asset-backed securities. Scott E.
Dolan, Portfolio Manager, joined the team in 1994 and is responsible for
implementing the Fund's strategy. Mr. Dolan, who joined Scudder in 1989, has
four years of experience in compliance analysis and account administration and
has worked as a portfolio manager since 1993.
Scudder Cash Investment Trust. Stephen L. Akers assumed responsibility for the
Fund's day-to-day management in 1995. Mr. Akers joined the Fund's team in 1994
and has managed several fixed-income portfolios since joining Scudder in 1984.
Robert T. Neff, Portfolio Manager, joined Scudder in 1972 and has more than 20
years experience managing short-term fixed-income assets. 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 12 years experience working with short-term
fixed-income investments.
SAIL(TM)--Scudder Automated Information Line
For personalized account information including fund prices, yields and account
balances, to perform transactions in existing Scudder fund accounts, or to
obtain information on any Scudder fund, shareholders can call Scudder's
Automated Information Line (SAIL) at 1-800-343-2890, 24 hours a day. During
periods of extreme economic or market changes, or other conditions, it may be
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<PAGE>
Shareholder benefits (cont'd)
difficult for you to effect telephone transactions in your account. In such an
event you should write to the Fund; please see "How to contact Scudder" for the
address.
Investment flexibility
Scudder offers toll-free telephone exchange between funds at current net asset
value. You can move your investments among money market, income, growth,
tax-free and growth and income funds with a simple toll-free call or, if you
prefer, by sending your instructions through the mail or by fax. Telephone and
fax redemptions and exchanges are subject to termination and their terms are
subject to change at any time by the Fund or the transfer agent. In some cases,
the transfer agent or Scudder Investor Services, Inc. may impose additional
conditions on telephone transactions.
Dividend reinvestment plan
You may have dividends and distributions automatically reinvested in additional
Fund shares. Please call 1-800-225-5163 to request this feature.
Shareholder statements
You receive a detailed account statement every time you purchase or redeem
shares. All of your statements should be retained to help you keep track of
account activity and the cost of shares for tax purposes.
Shareholder reports
In addition to account statements, you receive periodic shareholder reports
highlighting relevant information, including investment results and a review of
portfolio changes.
To reduce the volume of mail you receive, only one copy of most Fund reports,
such as the Fund's Annual Report, may be mailed to your household (same surname,
same address). Please call 1-800-225-5163 if you wish to receive additional
shareholder reports.
Newsletters
Four times a year, Scudder sends you Perspectives, an informative newsletter
covering economic and investment developments, service enhancements and other
topics of interest to Scudder fund investors.
Scudder Funds Centers
As a convenience to shareholders who like to conduct business in person, Scudder
Investor Services, Inc. maintains Funds Centers in Boca Raton, Boston, Chicago,
Cincinnati, Los Angeles, New York, Portland (OR), San Diego, San Francisco and
Scottsdale.
T.D.D. service for the hearing impaired
Scudder's full range of investor information and shareholder services is
available to hearing impaired investors through a toll-free T.D.D. (Telephone
Device for the Deaf) service. If you have access to a T.D.D., call
1-800-543-7916 for investment information or specific account questions and
transactions.
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<PAGE>
Scudder tax-advantaged retirement plans
Scudder offers a variety of tax-advantaged retirement plans for individuals,
businesses and non-profit organizations. These flexible plans are designed for
use with the Scudder Family of Funds (except Scudder tax-free funds, which are
inappropriate for such plans). Scudder Funds offer a broad range of investment
objectives and can be used to seek almost any investment goal. Using Scudder's
retirement plans can help shareholders save on current taxes while building
their retirement savings.
o Scudder No-Fee IRAs. These retirement plans allow a maximum annual
contribution of $2,000 per person for anyone with earned income. Many
people can deduct all or part of their contributions from their
taxable income, and all investment earnings accrue on a tax deferred
basis. The Scudder No-Fee IRA charges no annual custodial fee.
o 401(k) Plans. 401(k) plans allow employers and employees to make
tax-deductible retirement contributions. Scudder offers a full service
program that includes recordkeeping, prototype plan, employee
communications and trustee services, as well as investment options.
o Profit Sharing and Money Purchase Pension Plans. These plans allow
corporations, partnerships and people who are self-employed to make
annual, tax-deductible contributions of up to $30,000 for each person
covered by the plans. Plans may be adopted individually or paired to
maximize contributions. These are sometimes known as Keogh plans.
o 403(b) Plans. Retirement plans for tax-exempt organizations and school
systems to which employers and employees may both contribute.
o SEP-IRAs. Easily administered retirement plans for small businesses
and self-employed individuals. The maximum annual contribution to
SEP-IRA accounts is adjusted each year for inflation.
o Scudder Horizon Plan. A no-load variable annuity that lets you build
assets by deferring taxes on your investment earnings. You can start
with $2,500 or more.
Scudder Trust Company (an affiliate of the Adviser) is Trustee or Custodian for
some of these plans and is paid an annual fee for some of the above retirement
plans. For information about establishing a Scudder No-Fee IRA, SEP-IRA, Profit
Sharing Plan, Money Purchase Pension Plan or a Scudder Horizon Plan, please call
1-800-225-2470. For information about 401(k)s or 403(b)s please call
1-800-323-6105. To effect transactions in existing IRA, SEP-IRA, Profit Sharing
or Pension Plan accounts, call 1-800-225-5163.
The variable annuity contract is provided by Charter National Life Insurance
Company (in New York State, Intramerica Life Insurance Company [S 1802]). The
contract is offered by Scudder Insurance Agency, Inc. (in New York State, Nevada
and Montana, Scudder Insurance Agency of New York, Inc.). CNL, Inc. is the
Principal Underwriter. Scudder Horizon Plan is not available in all states.
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<PAGE>
Directors and Officers
Scudder Global Fund
Edmond D. Villani*
Chairman of the Board and Director
William E. Holzer*
President
Paul Bancroft III
Director; Venture Capitalist and Consultant
Sheryle J. Bolton
Director; Consultant
Nicholas Bratt*
Director
Thomas J. Devine
Director; Consultant
William H. Gleysteen, Jr.
Director; President, The Japan Society, Inc.
William H. Luers
Director; President, The Metropolitan Museum of Art
Daniel Pierce*
Director and Vice President
Robert G. Stone, Jr.
Honorary Director; Chairman of the Board and Director, Kirby Corporation
Robert W. Lear
Honorary Director; Executive-in-Residence, Visiting Professor,
Columbia University Graduate School of Business
Adam M. Greshin*
Vice President
Jerard K. Hartman*
Vice President
Thomas W. Joseph*
Vice President
Douglas M. Loudon*
Vice President
Gerald J. Moran*
Vice President
Isabel Saltzman*
Vice President
Cornelia M. Small*
Vice President
Thomas F. McDonough*
Vice President and Secretary
Pamela A. McGrath*
Vice President and Treasurer
David S. Lee*
Vice President and Assistant Treasurer
Edward J. O'Connell*
Vice President and Assistant Treasurer
Juris Padegs*
Vice President and Assistant Secretary
Kathryn L. Quirk*
Vice President and Assistant Secretary
Coleen Downs Dinneen*
Assistant Secretary
*Scudder, Stevens & Clark, Inc.
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<PAGE>
Trustees and Officers
Scudder Growth and Income Fund, Scudder Short Term Bond Fund and Scudder Cash
Investment Trust
Daniel Pierce*
President and Trustee (1,2)
David S. Lee*
President and Trustee (3);
Vice President (1,2)
Henry P. Becton, Jr.
Trustee (1,3); President and General Manager, WGBH
Educational Foundation
Lynn S. Birdsong*
Trustee (2)
Sheryle J. Bolton
Trustee (2); Consultant
Thomas J. Devine
Trustee (2); Consultant
Dawn-Marie Driscoll
Trustee (3); Attorney and Corporate Director
Cuyler W. Findlay*
Vice President and Trustee (3)
Peter B. Freeman
Trustee (2,3); Corporate Director and Trustee
Dudley H. Ladd*
Vice President (3) and Trustee (1,3)
George M. Lovejoy, Jr.
Trustee (1,3); President and Director,
Fifty Associates
Wesley W. Marple, Jr.
Trustee (1); Professor of Business Administration,
Northeastern University
Dr. Wilson Nolen
Trustee (2); Consultant
Juris Padegs*
Trustee (1,2)
Jean C. Tempel
Trustee (1); General Partner, TL Ventures
Stephen L. Akers*
Vice President (3)
Bruce F. Beaty*
Vice President (1)
Jerard K. Hartman*
Vice President
Robert T. Hoffman*
Vice President (1)
Thomas W. Joseph*
Vice President
Douglas M. Loudon*
Vice President (1)
Valerie F. Malter*
Vice President (1)
Robert T. Neff*
Vice President (3)
Thomas M. Poor*
Vice President (2)
Thomas F. McDonough*
Vice President, Secretary;
Assistant Treasurer (1,2)
Pamela A. McGrath*
Vice President and Treasurer
Edward J. O'Connell*
Vice President and Assistant Treasurer
Kathryn L. Quirk*
Vice President and Assistant Secretary (2)
Coleen Downs Dinneen*
Assistant Secretary
* Scudder, Stevens & Clark, Inc.
(1) Scudder Growth and Income Fund
(2) Scudder Short Term Bond Fund
(3) Scudder Cash Investment Trust
All Funds unless otherwise indicated.
35
<PAGE>
<TABLE>
<CAPTION>
Investment products and services
<S> <C>
The Scudder Family of Funds Income
Money market Scudder Emerging Markets Income Fund
Scudder Cash Investment Trust Scudder Global Bond Fund
Scudder U.S. Treasury Money Fund Scudder GNMA Fund
Tax free money market+ Scudder Income Fund
Scudder Tax Free Money Fund Scudder International Bond Fund
Scudder California Tax Free Money Fund* Scudder Short Term Bond Fund
Scudder New York Tax Free Money Fund* Scudder Zero Coupon 2000 Fund
Tax free+ Growth
Scudder California Tax Free Fund* Scudder Capital Growth Fund
Scudder High Yield Tax Free Fund Scudder Development Fund
Scudder Limited Term Tax Free Fund Scudder Global Discovery Fund
Scudder Managed Municipal Bonds Scudder Global Fund
Scudder Massachusetts Limited Term Tax Free Fund* Scudder Gold Fund
Scudder Massachusetts Tax Free Fund* Scudder Greater Europe Growth Fund
Scudder Medium Term Tax Free Fund Scudder International Fund
Scudder New York Tax Free Fund* Scudder Latin America Fund
Scudder Ohio Tax Free Fund* Scudder Pacific Opportunities Fund
Scudder Pennsylvania Tax Free Fund* Scudder Quality Growth Fund
Growth and Income Scudder Small Company Value Fund
Scudder Balanced Fund Scudder Value Fund
Scudder Growth and Income Fund The Japan Fund
------------------------------------------------------------------------------------------------------------------------
Retirement Plans and Tax-Advantaged Investments
IRAs 403(b) Plans
Keogh Plans SEP-IRAs
Scudder Horizon Plan*+++ (a variable annuity) Profit Sharing and
401(k) Plans Money Purchase Pension Plans
------------------------------------------------------------------------------------------------------------------------
Closed-end Funds#
The Argentina Fund, Inc. Scudder New Europe Fund, Inc.
The Brazil Fund, Inc. Scudder World Income Opportunities Fund, Inc.
The First Iberian Fund, Inc.
The Korea Fund, Inc. Institutional Cash Management
The Latin America Dollar Income Fund, Inc. Scudder Institutional Fund, Inc.
Montgomery Street Income Securities, Inc. Scudder Fund, Inc.
Scudder New Asia 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.
</TABLE>
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<PAGE>
How to contact Scudder
<TABLE>
<CAPTION>
<S> <C>
Account Service and Information: Please address all correspondence to:
For existing account service Scudder Investor Relations The Scudder Funds
and transactions 1-800-225-5163 P.O. Box 2291
Boston, Massachusetts
02107-2291
For personalized information Scudder Automated
about your Scudder accounts; Information Line
exchanges and redemptions; (SAIL)
or information on any 1-800-343-2890
Scudder fund
Investment Information: Or Stop by a Scudder Funds Center:
To receive information about Scudder Investor Relations Many shareholders enjoy the personal, one-on-one
the Scudder funds, for 1-800-225-2470 service of the Scudder Funds Centers. Check for a
additional applications and Funds Center near you--they can be found in the
prospectuses, or for following cities:
investment questions
For establishing 401(k) and Scudder Defined Boca Raton New York
403(b) plans Contribution Services Boston Portland, OR
1-800-323-6105 Chicago San Diego
Cincinnati San Francisco
Los Angeles Scottsdale
For information on Scudder Treasurers Trust(TM), an For information on Scudder Institutional Funds*,
institutional cash management service for funds designed to meet the broad investment management and
corporations, non-profit organizations and trusts service needs of banks and other institutions, call:
which utilizes certain portfolios of Scudder 1-800-854-8525.
Fund, Inc.* ($100,000 minimum), call: 1-800-541-7703.
</TABLE>
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.
37
