Scudder International Fund
- -------------------------------------
August 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
Retirement Plan Prospectus
Four pure no-load(TM) mutual funds offering a broad range of investment
objectives that can be used for your Retirement Plan.
This combined prospectus sets forth concisely the information a prospective
retirement plan investor should know before investing in the following funds:
Scudder International Fund, Scudder Growth and Income Fund, Scudder Short Term
Bond Fund 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 August 1, 1995 for Scudder International Fund, May 1, 1996 for Scudder
Growth and Income Fund and Scudder Short Term Bond Fund and November 1, 1995 for
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 7.
<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.
<TABLE>
<CAPTION>
1) Shareholder transaction expenses: Expenses charged directly to your individual account in a Fund for various
transactions.
Scudder Scudder Scudder Scudder Cash
International Growth and Short Term Investment
Fund Income Fund Bond Fund Trust
---- ----------- --------- -----
<S> <C> <C> <C> <C>
Sales commissions to purchase shares (sales load) NONE NONE NONE NONE
Commissions to reinvest dividends NONE NONE NONE NONE
Distribution fees* NONE NONE NONE NONE
Fees to exchange shares NONE NONE NONE NONE
2) Annual Fund operating expenses: Expenses paid by a Fund before it
distributes its net investment income, expressed as a percentage of the
Fund's average daily net assets for the fiscal year ended March 31, 1995 for
Scudder International Fund, December 31, 1995 for Scudder Growth and Income
Fund and Scudder Short Term Bond Fund, and June 30, 1995 for Scudder Cash
Investment Trust.
Investment management fee 0.83% 0.51%** 0.49% 0.41%
12b-1 fees NONE NONE NONE NONE
Other expenses 0.36% 0.28% 0.26% 0.37%
----- ----- ----- -----
Total Fund operating expenses 1.19% 0.79%** 0.75% 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 Fund has no
redemption fees of any kind.)
One year $ 12 $ 8 $ 8 $ 8
Three years 38 25 24 25
Five years 65 44 42 43
Ten years 144 98 93 97
</TABLE>
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.
* Please refer to "Transaction information--Tax information."
** 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>
Financial highlights
Scudder International Fund
The following table includes selected data for a share outstanding throughout
each period (a) 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 March 31, 1995 and may be obtained without charge by
writing or calling Scudder Investor Services, Inc.
<TABLE>
<CAPTION>
YEARS ENDED MARCH 31,
--------------------------------------------------------------------------------------------
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........ $42.96 $35.69 $34.36 $34.69 $37.00 $34.79 $33.43 $44.05 $36.93 $23.03
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income from investment
operations:
Net investment
income................... .21 .31 .38 .44 .80 .49 .40 .45 .47 .74
Net realized and
unrealized gain (loss)
on investment
transactions............. (1.03) 7.74 2.64 (.37) (.39) 5.30 4.15 (.86) 13.07 13.70
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment
operations................. (.82) 8.05 3.02 .07 .41 5.79 4.55 (.41) 13.54 14.44
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Less distributions:
From net investment
income................... -- (.63) (.83) -- (.74) (.43) (.13) (.82) (.49) (.41)
In excess of net
investment income........ -- (.06) -- -- -- -- -- -- -- --
From net realized gains
on investment
transactions............. (2.42) (.09) (.86) (.40) (1.98) (3.15) (3.06) (9.39) (5.93) (.13)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total distributions.......... (2.42) (.78) (1.69) (.40) (2.72) (3.58) (3.19) (10.21) (6.42) (.54)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period.............. $39.72 $42.96 $35.69 $34.36 $34.69 $37.00 $34.79 $33.43 $44.05 $36.93
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (%)............. (2.02) 22.69 9.12 .18 1.46 17.08 14.34 (.47) 40.18 64.17
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end of period
($ millions)............... 2,192 2,198 1,180 933 929 783 550 559 791 597
Ratio of operating
expenses to average
net assets (%)............. 1.19 1.21 1.26 1.30 1.24 1.18 1.22 1.21 1.09 .99
Ratio of net investment
income to average
net assets (%)............. .48 .75 1.13 1.25 2.22 1.33 1.20 1.16 1.19 2.60
Portfolio turnover rate (%).. 46.3 39.9 29.2 50.4 70.1 49.4 48.3 54.8 66.5 36.0
<FN>
(a) Based on monthly average shares outstanding during the period.
</FN>
</TABLE>
3
<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
------------------------------------------------------------------------------
<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>
4
<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
<FN>
(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.
</FN>
</TABLE>
5
<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>
6
<PAGE>
A message from Scudder's chairman
We're pleased that you are considering Scudder for your retirement plan. There
are many important reasons to invest in your future: to provide a measure of
freedom and security after you've stopped working, to maintain your lifestyle,
and to complement Social Security and other retirement benefits.
When you invest through an IRA, you reap the additional benefit of tax-deferred
earnings growth. Some IRA investors may also deduct all or part of their yearly
contributions from current taxes. And in keeping with Scudder's pure no-load(TM)
philosophy, Scudder IRAs offer you the added advantage of charging no annual
custodial fee.
This prospectus includes four Scudder funds that may be appropriate for
investors with different retirement planning needs:
o Scudder International Fund
o Scudder Growth and Income Fund
o Scudder Short Term Bond Fund
o Scudder Cash Investment Trust
Scudder's family of 37 pure no-load(TM) mutual funds is designed to provide
investors with a complete investment program. If you have any questions about
our funds or retirement planning with Scudder, we encourage you to call Scudder
Investor Relations at 1-800-225-2470. We look forward to welcoming you as a
retirement plan investor at Scudder.
/s/Daniel Pierce
Fund objectives
o Scudder International Fund
seeks long-term growth of capital primarily from foreign equity securities
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 while maintaining the liquidity of capital and
providing current income from money market securities
Contents
Introduction 8
Scudder International Fund 8
Scudder Growth and Income Fund 9
Scudder Short Term Bond Fund 9
Scudder Cash Investment Trust 10
Special risk considerations 11
Additional information about policies and investments 12
Fund distribution and performance information 16
Fund organization 17
Transaction information 19
Contributions, exchanges and distributions 20
Shareholder benefits 22
Directors and Officers 25
Trustees and Officers 26
Investment products and services 27
How to contact Scudder Back cover
7
<PAGE>
Introduction
Scudder International Fund, Scudder Growth and Income Fund, Scudder Short Term
Bond Fund and Scudder Cash Investment Trust 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 retirement needs.
Each of these Funds may be appropriate for IRAs, 401(k)s and other retirement
plans. With an IRA, you can put aside up to $2,000 of earned income each year
until the year you turn age 70 1/2. Whether you have many years until you retire
or just a few, IRAs offer an immediate advantage: tax-deferred earnings that
compound free of current income taxes, nurturing the growth of your retirement
savings.
Investors will also benefit from the cost-savings and professional management of
a no-load mutual fund. Each Fund offers all the benefits of the Scudder Family
of Funds. Scudder, Stevens & Clark, Inc. has been researching and managing
investments since 1919 and offered America's first no-load fund in 1928. It
manages over $100 billion in assets, including 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 the Fund remains an appropriate investment in light of their then
current financial position and needs. There can be no assurance that the Funds'
objectives will be met.
Scudder International Fund
Investment objective and policies
Scudder International Fund seeks long-term growth of capital primarily through a
diversified portfolio of marketable foreign equity securities. These securities
are selected primarily to permit the Fund to participate in non-United States
companies and economies with prospects for growth. The Fund invests in
companies, wherever organized, which do business primarily outside the United
States. The Fund intends to diversify investments among several countries and to
have represented in the portfolio, in substantial proportions, business
activities in not less than three different countries. The Fund does not intend
to concentrate investments in any particular industry.
Investments
The Fund generally invests in equity securities of established companies, listed
on foreign exchanges, which the Adviser believes have favorable characteristics.
When the Adviser believes that it is appropriate to do so in order to achieve
the Fund's investment objective of long-term capital growth, the Fund may invest
up to 20% of its total assets in debt securities. Such debt securities include
debt securities of foreign governments, supranational organizations and private
issuers, including bonds denominated in the European Currency Unit (ECU).
Portfolio debt investments will be selected on the basis of, among other things,
yield, credit quality, and the fundamental outlooks for currency and interest
rate trends in different parts of the globe, taking into account the ability to
hedge a degree of currency or local bond price risk. The Fund may purchase
"investment-grade" bonds, which are 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, if unrated, judged by the Adviser to be of equivalent quality. The
Fund may also invest up to 5% of its total assets in debt securities which are
rated below investment-grade (see "Additional information about policies and
investments--Risk factors").
When the Adviser determines that exceptional conditions exist abroad, the Fund
may, for temporary defensive purposes, invest all or a portion of its assets in
8
<PAGE>
Canadian or U.S. Government obligations or currencies, or securities of
companies incorporated in and having their principal activities in Canada or the
U.S.
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.
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
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.
9
<PAGE>
Scudder Short Term Bond Fund (cont'd)
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
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.
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
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asset value of $1.00 per share.
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 Investors Service, Inc. ("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;
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.
Special risk considerations
Global and international 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, nonnegotiable 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 the 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.
Purchases of foreign securities are usually made in foreign currencies and, as a
result, the 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 the 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
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Special risk considerations (cont'd)
risk of delayed settlements of portfolio transactions or loss of certificates
for portfolio securities. The 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 International Fund is designed for long-term investors who can accept
international investment risk. 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 international 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 International Fund, Scudder Growth and Income Fund and
Scudder Short Term Bond Fund may 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 matters of nonfundamental policy, 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 and Scudder International Fund, as a matter of
nonfundamental policy, each 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. Each may
not invest more than 5% of its total assets in restricted securities.
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.
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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
Scudder Growth and Income Fund and Scudder Short Term Bond Fund 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
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
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Additional information about policies and investments (cont'd)
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
Scudder International Fund, Scudder Growth and Income Fund and Scudder Short
Term Bond Fund may, but are 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 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
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.
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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.
Securities lending. From time to time, a 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.
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 International Fund may invest no more
than 5% of its total assets in debt securities which are rated below
investment-grade; that is, rated below Baa by Moody's or BBB by S&P (commonly
referred to as "junk bonds"). The lower the ratings of such debt securities, the
greater their risks render them like equity securities. The Fund may invest in
securities which are rated D by S&P or, if unrated, are of equivalent quality.
Securities rated D may be in default with respect to payment of principal or
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 seller of the securities before repurchase of the securities
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
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Additional information about policies and investments (cont'd)
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.
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 the Fund to sell them promptly at an
acceptable price.
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
market risk of the reference instrument.
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
International 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.
Fund distribution and performance information
Dividends and capital gains distributions
Scudder International Fund intends to distribute dividends from its 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. Each of Scudder Short Term Bond Fund's and
Scudder Cash Investment Trust's dividends from net investment income are
declared daily and distributed monthly. Scudder Cash Investment Trust may take
into account capital gains and losses (other than long-term capital gains) in
its daily dividend declaration.
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Each Fund intends to distribute 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 the Funds' fiscal year ends, if necessary. All
distributions from shares held in an IRA will automatically be reinvested in
additional shares of the Fund.
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.
"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 International 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.
Fund organization
Each Fund is a diversified, open-end management investment company registered
under the Investment Company Act of 1940 (the "1940 Act"). Scudder International
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 Board 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 International Fund
Scudder International Fund is a series of Scudder International Fund, Inc., a
Maryland corporation whose predecessor was organized in 1953.
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
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Fund organization (cont'd)
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 International 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. For each
Fund, the fee is graduated so that increases in the Fund's net assets may result
in a lower average fee rate and decreases in the Fund's net assets may result in
a higher average fee rate.
For Scudder International Fund, the Adviser receives an investment management
fee for these services equal, on an annual basis, to 0.90% of the first $500
million of average daily net assets, 0.85% of the next $500 million of such
assets, 0.80% of the next $1 billion of such assets and 0.75% of such assets in
excess of $2 billion.
Prior to September 8, 1994 the Adviser received an investment management fee
equal, on an annual basis, to 1.00% of the first $200 million of average daily
net assets; 0.90% of the next $200 million of such assets; 0.85% of the next
$400 million of such assets and 0.80% of such assets in excess of $800 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 March 31, 1995, the Adviser received an investment
management fee of 0.83% of Scudder International Fund's average daily net
assets.
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 0.41% of Scudder Cash Investment Trust's average daily net
assets.
Each Fund's fee is payable monthly, provided that each 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.
All of the Funds' 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 International 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.
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Scudder Trust Company, a subsidiary of the Adviser, is the custodian of the
retirement plans and is paid an annual fee for some of these plans.
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
Brown Brothers Harriman & Co., is custodian for the Scudder International Fund.
State Street Bank and Trust Company is the custodian for Scudder Growth and
Income Fund, Scudder Short Term Bond Fund and Scudder Cash Investment Trust.
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 for the Funds.
Transaction information
Making contributions
Contributions are executed at the next calculated net asset value per share
after the Funds' transfer agent receives the contribution request in good order.
Contributions are made in full and fractional shares. (See "Share price.")
By check. If you make a contribution with a check that does not clear, your
contribution 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 make a contribution by check and request a distribution within
seven business days of the contribution, each Fund may hold distribution
proceeds until the contribution check has cleared.
By exchange. Your new account will have the same registration and address as
your existing account.
You can also make exchanges among your Scudder fund accounts on SAIL, the
Scudder Automated Information Line, by calling 1-800-343-2890.
Distributions
Distributions may be requested at any time and must be made in writing. However,
shareholders who have reached the age of 70 1/2 are required to begin to receive
distributions by April 1, following the year in which they reached age 70 1/2.
Written requests for distributions should be made in advance of the required
distribution date to ensure that the distribution will be made before that time.
Shareholders should specify whether they would like the distribution in a lump
sum or in installment payments. Each Fund will make the distribution as soon as
possible after receiving the written request. Shareholders are also required to
take minimum distributions for each year following the year they turned 70 1/2
and these distributions must be made by December 31 of each year. Call
1-800-225-5163 to request an IRA Distribution form.
Share price
Contributions, distributions and exchanges are made at net asset value. For
Scudder International Fund, Scudder Growth and Income 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 New York Stock Exchange (the
"Exchange"), normally 4 p.m. eastern time, on each day the Exchange is open for
trading. For Scudder Cash Investment Trust, Scudder Fund Accounting Corporation
determines net asset value per share as of noon, and as of the close of 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.
Telephone transactions
Shareholders automatically receive the ability to exchange by telephone. Each
Fund uses procedures designed to give reasonable assurance that telephone
instructions are genuine, including recording telephone calls, testing a
(Continued on page 21)
19
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<TABLE>
<CAPTION>
Contributions, exchanges and distributions
<S> <C> <C> <C>
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Opening Minimum initial investment: $500
an IRA A $2,000 contribution gives you the maximum advantage.
Make checks payable o By Mail Send your completed and signed IRA Application, indicating "New IRA"
to "Scudder Trust and send a check in the enclosed business reply envelope
Company."
by regular mail to: or by express, registered,
or certified mail to:
Scudder Investor Services, Inc. Scudder Shareholder
P.O. Box 2291 Service Center
Boston, MA 42 Longwater Drive
02107-2291 Norwell, MA
02061-1612
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 How to contact Scudder.
- ---------------------------------------------------------------------------------------------------------------------
IRA If you've reached age 70 1/2, you must take your required minimum distribution for the year before you
Transfers complete the transfer.
Send your completed IRA Application and Transfer Request to one of the
addresses above. We'll take care of everything for you.
- ---------------------------------------------------------------------------------------------------------------------
IRA If you've reached age 70 1/2, you must take your required minimum distribution for the year before you
Rollovers complete the rollover.
Make checks payable Send your completed and signed IRA Application,
indicating "IRA-to-IRA to "Scudder Trust Rollover" and send a check in the
enclosed business reply envelope for Company." your rollover amount to one
of the addresses above.
- ---------------------------------------------------------------------------------------------------------------------
Direct If you've reached age 70 1/2, you must take your required minimum distribution for the year before you
IRA Rollovers complete the rollover.
Send your completed and signed IRA Application, indicating "Rollover from
Employer Sponsored Plan" and send a check in the enclosed business reply
envelope for your rollover amount to one of the addresses above.
If a check is not received with your application, an IRA account will be established in your
name, and you will be sent confirmation and instructions for sending the proceeds from your plan.
- ---------------------------------------------------------------------------------------------------------------------
Exchanging Shares Minimum investments: $500 to establish a new account;
$50 to exchange among existing IRA 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).
- ---------------------------------------------------------------------------------------------------------------------
Distributions Call 1-800-225-5163 for information and to request the appropriate
distribution form. The form will allow you to elect your distributions
in a lump sum or in installment payments. Please see "Transaction
information--Tax information."
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
Transaction information (cont'd)
(Continued from page 19)
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.
Signature guarantees. For your protection and to prevent fraudulent
distributions, on written distribution requests we require an original signature
and an original signature guarantee for each person in whose name the account is
registered. (Each Fund reserves the right, however, to require a signature
guarantee for all distributions.) 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 SEC. Signature guarantees by notaries public are not
acceptable. For more information, please call 1-800-225-5163.
Processing time
All contribution and distribution requests must be received in good order by the
Funds' transfer agent. Those 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. Contribution and distribution requests received after
the close of regular trading on the Exchange will be executed the following
business day. Contributions received before the close of regular trading on the
Exchange will begin earning income the next business day. Shares liquidated to
pay a distribution will earn income on the day on which the distribution request
is executed.
The Funds will normally send distribution proceeds within one business day
following the distribution request, but may take up to seven business days (or
longer in the case of shares recently contributed by check).
Short-term trading
Contributions should be made for long-term investment purposes only. Both the
Funds and Scudder Investor Services, Inc. each reserves 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
Shareholders are eligible to make a regular IRA contribution for any tax year in
which they have "earned income." However, shareholders cannot make a regular
contribution for the calendar year in which they reach age 70 1/2 or for any
later year.
Regular contributions for any tax year must be made during that tax year or by
April 15 of the next year. Rollover contributions or transfers to an IRA may be
made at any time even if a shareholder has reached the age of 70 1/2, but the
minimum required distribution for the year must be taken before a transfer or
rollover.
Shareholders are allowed to transfer or roll over all or a part of an IRA
investment to another IRA without any tax liability. Shareholders may transfer
assets directly from one IRA trustee or custodian to another at any time.
Shareholders may also take proceeds from an IRA and roll them over, within 60
days, into another IRA; however, only one rollover may be made from a particular
IRA during any 12-month period. If shareholders take a distribution from an IRA
and do not roll over all of the money received within the 60-day rollover
period, they will be subject to federal income tax, and state and local taxes,
if applicable, on any portion they keep. In most cases, if shareholders are
younger than 59 1/2, they will also be subject to a 10% federal penalty on the
amount not rolled over. In addition, if they are to receive a distribution of
all or any part of their interest in an employer-maintained retirement plan,
then they may roll over all or a portion of the distribution into an IRA either
directly from the employer-maintained plan or within 60 days of the day
received, unless the distribution is a required minimum distribution or part of
a series of substantially equal payments made over a period of 10 years or more,
or the shareholders' life expectancy or the joint life
21
<PAGE>
Transaction information (cont'd)
expectancy of the shareholders and their beneficiaries. Please note that
distributions paid directly from an employer plan will be subject to a 20%
withholding requirement unless they are required minimum distributions or
payments made over a period longer than 10 years of the life expectancy or the
joint life expectancy of the shareholders and their beneficiaries. Distributions
directly rolled over to an IRA are not subject to 20% withholding. An exchange
from one Scudder fund to another in the same IRA does not result in immediate
taxable income to the IRA owner. Please refer to the IRA Plan Document for
complete information.
Social Security number
Be sure to complete the Social Security Number section of the IRA application
when you open an account. Each Fund reserves the right to reject new account
applications without a Social Security number. Each Fund also reserves the
right, following 30 days' notice, to distribute all shares in accounts without a
Social Security number. A shareholder may avoid involuntary distribution by
providing the Fund with a Social Security number during the 30-day notice
period.
Minimum balances
Shareholders should maintain an IRA share balance worth at least $500, which
amount may be changed by each Fund's Board of Directors or Board of Trustees.
Each Fund reserves the right, following 60 days' written notice to shareholders,
to distribute all shares in sub-minimum accounts, including accounts of new
investors, where a reduction in value has occurred due to a distribution or
exchange out of the account. This distribution may be subject to tax and
penalties.
Reductions in value that result solely from market activity will not trigger an
involuntary distribution. Each Fund will mail the proceeds of the distributed
account to the shareholder. The shareholder may restore the share balance to
$500 or more during the 60-day notice period and must maintain it at no lower
than that minimum to avoid involuntary distribution.
Third party transactions
If contributions and distributions 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 International Fund and Scudder Growth and Income Fund 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 the Fund's management process. Team members work together
to develop investment strategies and select securities for the Fund's portfolio.
They are supported by Scudder's large staff of economists, research analysts,
traders and other investment specialists who work in Scudder's offices across
the United States and abroad. Scudder believes its team approach benefits Fund
investors by bringing together many disciplines and leveraging Scudder's
extensive resources.
22
<PAGE>
Scudder International Fund. Lead Portfolio Manager Carol L. Franklin joined
Scudder International Fund's portfolio management team in 1986 and has been
responsible for setting the Fund's investment strategy and overseeing security
selection for the Fund's portfolio since 1992. Ms. Franklin, who has 18 years of
experience in finance and investing, joined Scudder in 1981. Nicholas Bratt,
Portfolio Manager, directs Scudder's overall global equity investment
strategies. Mr. Bratt joined Scudder and the team in 1976. Irene T. Cheng,
Portfolio Manager, joined Scudder and the team in 1993. Ms. Cheng has 11 years
of experience in finance and investing. Francisco S. Rodrigo III, Portfolio
Manager, joined Scudder and the team in 1994. Mr. Rodrigo has been involved with
investment in global and international stocks and bonds as a portfolio manager
and analyst since 1989. Joan R. Gregory, Portfolio Manager, focuses on stock
selection, a role she has played since she joined Scudder in 1992. Ms. Gregory,
who joined the team in 1994, has been involved with investment in global and
international stocks as an assistant 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. Lead Portfolio Manager 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
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.
23
<PAGE>
Shareholder benefits (cont'd)
Shareholder statements
All of your Scudder IRA fund investments are reported on one convenient
quarterly statement. All of your statements should be retained to help you keep
track of account activity.
Shareholder reports
In addition to consolidated 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.
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.
24
<PAGE>
Directors and Officers
Scudder International Fund
Edmond D. Villani*
Chairman of the Board and Director
Nicholas Bratt*
President and Director
Paul Bancroft III
Director; Venture Capitalist and Consultant
Thomas J. Devine
Director; Consultant
Keith R. Fox
Director
William H. Gleysteen, Jr.
Director; President, The Japan Society, Inc.
William H. Luers
Director; President, The Metropolitan Museum of Art
Dr. Wilson Nolen
Director; Consultant
Juris Padegs*
Director, Vice President and Assistant Secretary
Daniel Pierce*
Director
Dr. Gordon Shillinglaw
Director; Professor Emeritus of Accounting, Columbia University Graduate
School of Business
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
Elizabeth J. Allan*
Vice President
Carol L. Franklin*
Vice President
Edmund B. Games, Jr.*
Vice President
Jerard K. Hartman*
Vice President
William E. Holzer*
Vice President
Thomas W. Joseph*
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
Kathryn L. Quirk*
Vice President and Assistant Secretary
Richard W. Desmond*
Assistant Secretary
Coleen Downs Dinneen*
Assistant Secretary
*?Scudder, Stevens & Clark, Inc.
25
<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.
26
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<TABLE>
<CAPTION>
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Investment products and services
The Scudder Family of Funds
Money market Growth
Scudder Cash Investment Trust Scudder Capital Growth Fund
Scudder U.S. Treasury Money Fund Scudder Development Fund
Income Scudder Global Discovery Fund
Scudder Emerging Markets Income Fund Scudder Global Fund
Scudder Global Bond Fund Scudder Gold Fund
Scudder GNMA Fund Scudder Greater Europe Growth Fund
Scudder Income Fund Scudder International Fund
Scudder International Bond Fund Scudder Latin America Fund
Scudder Short Term Bond Fund Scudder Pacific Opportunities Fund
Scudder Zero Coupon 2000 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
In addition to these taxable funds, Scudder offers a choice of tax free funds which are best for non-IRAs.
- -----------------------------------------------------------------------------------------------------------------------
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# Institutional Cash Management
The Argentina Fund, Inc. Scudder Institutional Fund, Inc.
The Brazil Fund, Inc. Scudder Fund, Inc.
The First Iberian Fund, Inc. Scudder Treasurers Trust(TM)++
The Korea Fund, Inc.
The Latin America Dollar Income Fund, Inc.
Montgomery Street Income Securities, Inc.
Scudder New Asia Fund, Inc.
Scudder New Europe Fund, Inc.
Scudder World Income Opportunities Fund, Inc.
- -----------------------------------------------------------------------------------------------------------------------
For complete information on any of the above Scudder funds, including management fees and expenses, call or write for a
free prospectus. Read it carefully before you invest or send money. *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>
27
<PAGE>
<TABLE>
<CAPTION>
How to contact Scudder
<S> <C>
Account Service and Information: Please address all correspondence to:
For existing account service Scudder Investor Relations The Scudder Funds
and transactions P.O. Box 2291
1-800-225-5163 Boston, Massachusetts
02107-2291
For personalized Scudder Automated
information about your Information Line
Scudder accounts; (SAIL)
exchanges and redemptions; 1-800-343-2890
or information on any
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 service of the Scudder Funds Centers. Check for a
additional applications and 1-800-225-2470 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
corporations, non-profit organizations and trusts management and service needs of banks and
which utilizes certain portfolios of Scudder Fund, Inc.* other institutions, call: 1-800-854-8525.
($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.
