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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 7
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<PAGE> PAGE 12
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<PAGE> PAGE 16
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<PAGE> PAGE 17
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SIGNATURE THOMAS F. MCDONOUGH
TITLE VICE PRESIDENT
1177 Avenue of the Americas Telephone 212 596 7000
New York, NY 10036 Facsimile 212 596 8910
Price Waterhouse LLP
February 12, 1996
To the Board of Directors of
Scudder Fund, Inc.
In planning and performing our audit of the financial statements of Managed
Government Securities Fund, Managed Federal Securities Fund, Managed Cash Fund
and Managed Tax-Free Fund (each a separate portfolio of Scudder Fund, Inc.,
hereafter referred to as the "Fund"), for the year ended December 31, 1995, we
considered its internal control structure, including procedures for safeguarding
securities, in order to determine our auditing procedures for the purposes of
expressing our opinion on the financial statements and to comply with the
requirements of Form N-SAR, and not to provide assurance on the internal control
structure.
The management of the Fund is responsible for establishing and maintaining an
internal control structure. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and related
costs of internal control structure policies and procedures. Two of the
objectives of an internal control structure are to provide management with
reasonable, but not absolute, assurance that assets are appropriately
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and may not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it may
become inadequate because of changes in conditions or that the effectiveness of
the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
December 31, 1995.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/s/PRICE WATERHOUSE LLP
PRICE WATERHOUSE LLP
1177 Avenue of the Americas Telephone 212 596 7000
New York, NY 10036 Facsimile 212 596 8910
Price Waterhouse LLP
February 12, 1996
To the Board of Directors of
Scudder Fund, Inc. - Managed Intermediate Government Fund
In planning and performing our audit of the financial statements of Managed
Intermediate Government Fund (the "Fund") for the year ended December 31, 1995,
we considered its internal control structure, including procedures for
safeguarding securities, in order to determine our auditing procedures for the
purposes of expressing our opinion on the financial statements and to comply
with the requirements of Form N-SAR, and not to provide assurance on the
internal control structure.
The management of the Fund is responsible for establishing and maintaining an
internal control structure. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and related
costs of internal control structure policies and procedures. Two of the
objectives of an internal control structure are to provide management with
reasonable, but not absolute, assurance that assets are appropriately
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and may not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it may
become inadequate because of changes in conditions or that the effectiveness of
the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
December 31, 1995.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/s/PRICE WATERHOUSE LLP
PRICE WATERHOUSE LLP
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the Managed
Tax-Free Fund Annual Report for the fiscal year ended December 31, 1995 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> MANAGED TAX-FREE FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 138,400,870
<INVESTMENTS-AT-VALUE> 138,400,870
<RECEIVABLES> 2,649,570
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 141,050,440
<PAYABLE-FOR-SECURITIES> 1,022,900
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,635,491
<TOTAL-LIABILITIES> 2,658,391
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 138,392,049
<SHARES-COMMON-STOCK> 138,392,049
<SHARES-COMMON-PRIOR> 124,596,732
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 138,392,049
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 5,361,006
<OTHER-INCOME> 0
<EXPENSES-NET> 1,047,782
<NET-INVESTMENT-INCOME> 4,313,224
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 4,313,224
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (4,313,224)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 561,389,929
<NUMBER-OF-SHARES-REDEEMED> 549,766,530
<SHARES-REINVESTED> 2,171,918
<NET-CHANGE-IN-ASSETS> 13,795,317
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 530,696
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,047,782
<AVERAGE-NET-ASSETS> 132,631,478
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .032
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (.032)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.79
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the Managed
Government Securities Fund Annual Report for the fiscal year ended December 31,
1995 and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 2
<NAME> MANAGED GOVERNMENT SECURITIES FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 50,390,925
<INVESTMENTS-AT-VALUE> 50,390,925
<RECEIVABLES> 62,546
<ASSETS-OTHER> 1,128
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 50,454,599
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 478,875
<TOTAL-LIABILITIES> 478,875
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 49,975,724
<SHARES-COMMON-STOCK> 49,975,724
<SHARES-COMMON-PRIOR> 68,556,977
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 49,975,724
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,058,977
<OTHER-INCOME> 0
<EXPENSES-NET> 377,623
<NET-INVESTMENT-INCOME> 3,681,354
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 3,681,354
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3,681,354)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 229,035,361
<NUMBER-OF-SHARES-REDEEMED> 250,578,326
<SHARES-REINVESTED> 2,961,712
<NET-CHANGE-IN-ASSETS> (18,581,253)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 274,626
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 589,357
<AVERAGE-NET-ASSETS> 68,656,281
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .054
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (.054)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.55
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the Managed
Cash Fund Annual Report for the fiscal year ended December 31, 1995 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> MANAGED CASH FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 374,281,342
<INVESTMENTS-AT-VALUE> 374,281,342
<RECEIVABLES> 1,641,963
<ASSETS-OTHER> 170,646
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 376,093,951
<PAYABLE-FOR-SECURITIES> 2,089,026
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,485,830
<TOTAL-LIABILITIES> 4,574,856
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 371,519,095
<SHARES-COMMON-STOCK> 371,681,175
<SHARES-COMMON-PRIOR> 367,106,930
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 371,519,095
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 22,772,894
<OTHER-INCOME> 0
<EXPENSES-NET> 2,090,001
<NET-INVESTMENT-INCOME> 20,682,893
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 20,682,893
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (20,682,893)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,168,020,988
<NUMBER-OF-SHARES-REDEEMED> 2,174,994,810
<SHARES-REINVESTED> 11,385,987
<NET-CHANGE-IN-ASSETS> 4,412,165
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,519,391
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,564,281
<AVERAGE-NET-ASSETS> 379,847,998
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .054
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (.054)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.55
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the Managed
Federal Securities Fund Annual Report for the fiscal year ended December 31,
1995 and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 5
<NAME> MANAGED FEDERAL SECURITIES FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 8,691,431
<INVESTMENTS-AT-VALUE> 8,691,431
<RECEIVABLES> 4,895
<ASSETS-OTHER> 15,926
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,712,252
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 80,329
<TOTAL-LIABILITIES> 80,329
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,631,923
<SHARES-COMMON-STOCK> 8,631,923
<SHARES-COMMON-PRIOR> 12,805,227
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 8,631,923
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 587,795
<OTHER-INCOME> 0
<EXPENSES-NET> 80,563
<NET-INVESTMENT-INCOME> 507,232
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 507,232
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (507,232)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 15,962,430
<NUMBER-OF-SHARES-REDEEMED> 20,579,055
<SHARES-REINVESTED> 443,321
<NET-CHANGE-IN-ASSETS> (4,173,304)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 43,217
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 154,853
<AVERAGE-NET-ASSETS> 10,804,367
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .047
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (.047)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the
Managed Intermediate Government Fund Annual Report for the fiscal year
ended December 31, 1995 and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 8
<NAME> MANAGED INTERMEDIATE GOVERNMENT FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 11,609,594
<INVESTMENTS-AT-VALUE> 11,739,838
<RECEIVABLES> 143,955
<ASSETS-OTHER> 103,295
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 11,987,088
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 103,856
<TOTAL-LIABILITIES> 103,856
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 13,394,344
<SHARES-COMMON-STOCK> 1,247,637
<SHARES-COMMON-PRIOR> 2,416,466
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,641,356)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 130,244
<NET-ASSETS> 11,833,232
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 754,614
<OTHER-INCOME> 0
<EXPENSES-NET> 103,018
<NET-INVESTMENT-INCOME> 651,596
<REALIZED-GAINS-CURRENT> 141,607
<APPREC-INCREASE-CURRENT> 338,273
<NET-CHANGE-FROM-OPS> 1,131,476
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (651,596)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 232,670
<NUMBER-OF-SHARES-REDEEMED> 1,458,944
<SHARES-REINVESTED> 57,445
<NET-CHANGE-IN-ASSETS> (10,295,531)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,782,963)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 83,422
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 203,428
<AVERAGE-NET-ASSETS> 12,834,063
<PER-SHARE-NAV-BEGIN> 9.18
<PER-SHARE-NII> .48
<PER-SHARE-GAIN-APPREC> .34
<PER-SHARE-DIVIDEND> (.48)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.52
<EXPENSE-RATIO> 0.80
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
