This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
Scudder Medium Term Tax Free Fund
Annual Report
December 31, 1994
* A fund that seeks to provide a high level of tax-free income and
limited principal fluctuation by investing in high-grade municipal
securities of intermediate maturity.
* A pure no-load(tm) fund with no commissions to buy, sell, or exchange
shares.
SCUDDER MEDIUM TERM TAX FREE FUND
CONTENTS
2 Highlights
3 Letter from the Fund's President
4 Performance Update
5 Portfolio Summary
6 Portfolio Management Discussion
10 Investment Portfolio
21 Financial Statements
24 Financial Highlights
25 Notes to Financial Statements
28 Report of Independent Accountants
29 Tax Information
29 Officers and Trustees
30 Investment Products and Services
31 How to Contact Scudder
HIGHLIGHTS
* Reflecting steadily rising interest rates, the federally tax-free
30-day net annualized yield of Scudder Medium Term Tax Free Fund
increased to 5.29% on December 31, 1994, from 4.46% on December 31,
1993.
(BAR CHART TITLE)
The Fund's 30-Day Yield and Taxable Equivalent Yields on December 31, 1994
(Chart Data)
<TABLE>
<S> <C>
Tax-Free Yield 5.29%
Taxable-Equivalent Yield at 36% Tax Bracket 8.27%
Taxable-Equivalent Yield at 39.6% Tax Bracket 8.76%
</TABLE>
* For investors in the top federal tax brackets of 39.6% and 36%, the
Fund's 5.29% tax-free yield as of December 31, 1994, was equivalent to
an 8.76% and 8.27% taxable yield, respectively.
* Following 10 consecutive years of positive performance, the Fund's
total return for 1994 was -3.50%, during a year of negative returns
for most fixed-income investments.
* Worthy of mention, over the one-, two-, three-, four-, and five-year
periods through December 31, 1994, the Fund outpaced its peer group
average, according to Lipper Analytical Services.
LETTER FROM THE FUND'S PRESIDENT
Dear Shareholders,
In 1994, United States bonds posted their worst returns in over sixty
years. Bond investors faced a number of obstacles during the year. Chief
among them was a nagging fear of inflation due to a strong economy and a
weak dollar, which spurred the Federal Reserve to hike short-term rates
repeatedly and caused rates to rise significantly on longer-term
investments as well. Other market hurdles included political and economic
uncertainties in many regions of the world, including municipal bankruptcy
in Orange County, California, and Mexico's peso devaluation crisis.
After such a year, it's fair to ask where municipal bond funds go from
here. While we will probably not see the double-digit returns of the early
1990s for some time, we believe this year will bring greater stability to
the bond market as well as the opportunity to earn solid income returns.
Fortunately, despite strong economic growth, inflation has remained
relatively quiescent. Continued low inflation should favor bondholders by
taking much of the pressure off of the Fed to raise interest rates in the
future.
But current global economic trends will also bring occasional episodes
of difficult adjustment for the financial markets. At times like these, it
is essential to have a sound investment plan in place that can weather
market storms. For many investors, such a plan includes current income free
from state and/or federal taxes, in addition to the traditional benefits of
mutual funds--diversification, liquidity, dividend reinvestment, and
professional anagement.
If you have questions about your Scudder Fund, please call Scudder
Investor Relations at 1-800-225-2470. Page 31 provides more information on
how to contact Scudder. Thank you for choosing Scudder Medium Term Tax Free
Fund to help meet your investing needs.
Sincerely,
/s/David S. Lee
David S. Lee
President,
Scudder Medium Term Tax Free Fund
<PAGE>
PORTFOLIO MANAGEMENT DISCUSSION
Dear Shareholders,
During a difficult period for bond investors, Scudder Medium Term Tax
Free Fund posted a -3.50% total return for its fiscal year ended December
31, 1994. By comparison, the total return of the unmanaged Lehman Brothers
Municipal Bond Index (comprised of long-term, investment-grade bonds) was
- - - - - -5.17%. The Fund's total return includes price change and reinvested income
distributions. Consistent with the weakness in the overall municipal
market, the Fund's share price fell to $10.39 at year end, from $11.36 on
December 31, 1993. Offsetting this decline somewhat, the Fund distributed
per share $0.53 in income and $0.05 in capital gain distributions to
shareholders. Reflecting the year's rise in interest rates, Scudder Medium
Term Tax Free Fund provided a 30-day net annualized yield of 5.29% as of
December 31, 1994, versus 4.46% at the close of 1993. For investors in the
36% federal income tax bracket, the Fund's yield was equivalent to an 8.27%
taxable yield.
Though Scudder Medium Term Tax Free Fund's recent performance is well
below returns you have enjoyed in the past, the Fund outpaced the average
performance of similar funds for the one-, two-, three-, four-, and
five-year periods ended December 31, 1994, as compiled by Lipper Analytical
Services. Please turn to the Performance Update on page 4 for more
information on the Fund's long-term progress, including comparisons to the
Lehman Brothers Municipal Bond Index.
(Chart Title)
Scudder Medium Term Tax Free Fund's Average Annual Return Versus That of
All Intermediate-Maturity Municipal Bond Funds (Returns for periods ended
December 31, 1994)
<TABLE>
<S> <C> <C> <C>
Period Scudder Medium Term Lipper Number of Funds
Tax Free Fund Average Tracked
1 year -3.50% -3.53% 82
2 years 3.47 3.28 49
3 years 5.26 4.72 34
4 years 6.94 6.07 31
5 years 6.81 6.17 29
10 years 6.95 7.53 9
Source: Lipper Analytical Services, Inc. Lipper is an independent analyst
of investment performance. Performance is historical and is not indicative
of future results.
</TABLE>
Mixed Market Influences
For municipal bond investors, the market environment in 1994 was
overlaid with a mix of favorable and unfavorable developments. The
favorable news came in two forms: higher income from tax-free investments
and a shrinking supply of bonds. While the 1993 municipal market featured
declining interest rates and a heavy supply of bonds due to a record number
of refinancings, last year's market saw a significant reduction in
refinancing activity due to rising rates. New-issue volume dropped from
$292 billion in 1993 to $163 billion in 1994 _ a 44% decrease. The low
relative supply of new issues helped support municipal bond prices in an
otherwise challenging year. We expect 1995's supply to be even lower than
last year's, some $135 billion, which should also help bolster prices.
On the unfavorable list of developments was the Orange County,
California, financial crisis, which occurred after the county's investment
fund sustained significant losses. In short, the Orange County investment
fund managers borrowed heavily in recent years to purchase bonds on the
belief that long-term interest rates would continue to decline _ even
during 1994, when rates were on the rise. We are pleased to report that the
Orange County crisis had no negative impact on the Fund other than
temporarily pushing down the prices of all California municipal bonds in
general.
(BAR CHART TITLE) Supply of New Municipal Issues (in billions)
<TABLE>
<S> <C>
1993 $292
1994 $163
1995 $135*
*Estimated
</TABLE>
Another challenge for the municipal market in 1994 was the impact of a
recent tax law provision that caused municipal bond funds to owe income
taxes on certain bonds purchased at prices below par (or face value).
Municipal bonds priced at par or at a discount to par have since become
less attractive to tax-wary investors. On the other hand, bonds priced at a
premium are now more attractive to many investors than they were
previously. We are currently working to keep the provision's impact on
Scudder's tax-free portfolios to a minimum.
Portfolio Strategy Review
In conjunction with the Fund's primary goals of maximizing the Fund's
yield while maintaining as much price stability as possible, we continue to
purchase high-grade intermediate-term municipal bonds. During the course of
1994, however, we shortened Scudder Medium Term Tax Free Fund's average
maturity from 7.4 years to 6.9 years to help reduce the Fund's sensitivity
to rising interest rates. Moreover, we plan to de-emphasize bonds with
maturities in the three- to seven-year range during the coming months. If
interest rates do rise further in 1995, these bonds will be impacted most
strongly. Instead, we will focus on bonds within the Fund's maturity
parameters that are both shorter and longer than this three- to seven-year
range and offer attractive yields along with the potential for some price
appreciation.
During the year we maintained the Fund's emphasis on noncallable
bonds, which provide a dependable income stream since their issuers cannot
redeem them before their maturity dates. On December 31, 1994,
approximately 82% of the bonds in the Fund's portfolio were noncallable. In
the current environment of rising rates, we continue to rely on
call-protected bonds for their more stable characteristics, and because at
present we believe they represent good value.
Diversification among our holdings remains an important strategy for
Scudder Medium Term Tax Free Fund, because it allows us to spread the
portfolio's risk over a large number of geographic areas, bond sectors, and
maturities. The Fund held securities issued in 40 states, as well as the
District of Columbia and the Virgin Islands, as of December 31, 1994. In
addition, Fund assets were distributed among general obligation bonds,
electric utility revenue bonds, hospital/healthcare bonds, and several
other sectors. And portfolio quality remains high, with approximately 72%
of Fund assets rated AAA, AA, or the equivalent. In fact, the Fund does not
purchase any bonds rated below investment grade. Securities are rated by
Standard & Poor's, Moody's Investors Service, Fitch Investors Service, or
assigned an equivalent rating by Scudder. The Portfolio Summary on page 5
provides more information about the Fund's holdings, including quality,
maturity, and sector representation.
Outlook for 1995
We believe a combination of continued economic growth and restrained
inflation will characterize 1995. Even so, the Federal Reserve will be
watching carefully for economic statistics that carry additional
inflationary warning signs. At this writing, the Fed seems prepared to hike
short-term interest rates one or two more times in 1995 as needed.
Additional Fed actions increase the likelihood that economic growth will be
subdued as early as 1996 _ a scenario that historically has boded well for
municipal bonds.
In this environment, we will continue to search for value and purchase
select noncallable bonds as opportunities present themselves. We will also
maintain a moderate cash position until we are confident that interest
rates have stabilized. At that point we will consider lengthening our
average maturity to take advantage of higher available yields as well as
any potential price appreciation that may result from a decline in rates.
As always, we remain committed to seeking high relative tax-free income and
share-price stability with an emphasis on quality investments.
Sincerely,
Your Portfolio Management Team
/s/Donald C. Carleton /s/M. Ashton Patton
Donald C. Carleton M. Ashton Patton
Scudder Medium Term Tax Free Fund:
A Team Approach to Investing
Scudder Medium Term Tax Free 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 closely 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 our offices across
the United States and abroad. We believe our team approach benefits Fund
investors by bringing together many disciplines and leveraging Scudder's
extensive resources.
Lead Portfolio Manager Donald C. Carleton has had responsibility for
Scudder Medium Term Tax Free Fund's day-to-day operations since he joined
Scudder in 1983. Don, who has worked in the investment industry for more
than 25 years, also serves as Lead Portfolio Manager for Scudder Managed
Municipal Bonds and as a Portfolio Manager of Scudder California and New
York Tax Free Funds and Scudder Tax Free Money Fund. M. Ashton Patton,
Portfolio Manager, became a member of the team in 1989. Ashton, who has
worked with municipal investments since joining Scudder in 1986, focuses on
the Fund's security selection.
<PAGE>
<TABLE>
SCUDDER MEDIUM TERM TAX FREE FUND
INVESTMENT PORTFOLIO as of December 31, 1994
- - - - - ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
-----------------------
Principal Credit Market
Amount ($) Rating (e) Value ($)
- - - - - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1.3% SHORT-TERM MUNICIPAL INVESTMENTS
-----------------------------------------------------------------------------------------------------------
CALIFORNIA Southern California Public Power Authority, Power
Project, Revenue Refunding, Palo Verde, Daily
Demand Note, 3.50%, 7/1/12 (b)* . . . . . . . . . . . 6,000,000 AAA 6,000,000
TEXAS North Central Texas Health Facilities Development Corp.
Methodist Hospital of Dallas, Daily Demand
Note, 5.85%, 10/1/15 (b)* . . . . . . . . . . . . . . 2,300,000 A1 2,300,000
WASHINGTON Washington Health Care Facilities Authority, Sisters of
Providence, Series 1985 E, Variable Rate Demand
Note, 6%, 10/1/05 * . . . . . . . . . . . . . . . . . 500,000 A1+ 500,000
--------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(Cost $8,800,000) . . . . . . . . . . . . . . . . . . 8,800,000
--------------
98.7% LONG-TERM MUNICIPAL INVESTMENTS
--------------------------------------------------------------------------------------------------------
ALABAMA University of South Alabama, Hospital and Auxiliary
Revenue, 4.875%, 5/15/04 (b) . . . . . . . . . . . . 6,680,000 AAA 5,956,510
ALASKA North Slope Borough, AK, General Obligation:
Refunding, Series G, 7.5%, 6/30/97 (b) . . . . . . . 2,350,000 AAA 2,457,160
Series A, Zero Coupon, 6/30/02 (b) . . . . . . . . . 5,000,000 AAA 3,168,050
Series A, Zero Coupon, 6/30/03 (b) . . . . . . . . . 7,000,000 AAA 4,139,100
Series I, Refunding, 6.55%, 6/30/95 (b) . . . . . . . 2,000,000 AAA 2,018,540
Series I, Zero Coupon, 6/30/96 (b) . . . . . . . . . 2,800,000 AAA 2,581,124
Series I, 6.6%, 6/30/96 (b) . . . . . . . . . . . . . 4,000,000 AAA 4,069,280
Zero coupon, 6/30/04, Capital Guaranty Insured . . . 19,500,000 AAA 10,700,235
ARIZONA Arizona Health Facilities Authority, Phoenix Baptist
Hospital and Medical Center, 6.1%, 9/1/03 (b) . . . . 2,000,000 AAA 2,018,540
Maricopa County, AZ, School District #28,
Kyrene Elementary, Series B, Zero Coupon:
7/1/02 (b) . . . . . . . . . . . . . . . . . . . . . 3,350,000 AAA 2,133,079
1/1/03 (b) . . . . . . . . . . . . . . . . . . . . . 5,750,000 AAA 3,525,268
7/1/03 (b) . . . . . . . . . . . . . . . . . . . . . 6,000,000 AAA 3,567,720
Maricopa County, AZ, Unified School District #41:
Capital Appreciation Bond, Zero Coupon:
7/1/03 (b) . . . . . . . . . . . . . . . . . . . . . 7,000,000 AAA 4,189,920
1/1/04 (b) . . . . . . . . . . . . . . . . . . . . . 6,000,000 AAA 3,457,260
Zero Coupon:
7/1/04 (b) . . . . . . . . . . . . . . . . . . . . . 7,000,000 AAA 3,911,810
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- - - - - --------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
------------
Principal Credit Market
Amount ($) Rating (e) Value ($)
- - - - - --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
7/1/06 (b) . . . . . . . . . . . . . . . . . . . 5,605,000 AAA 2,719,098
Maricopa County, AZ, Unified School District #97,
Deer Valley, Zero Coupon:
7/1/02 (b) . . . . . . . . . . . . . . . . . . . . 9,120,000 AAA 5,840,995
7/1/05 (b) . . . . . . . . . . . . . . . . . . . . 4,060,000 AAA 2,112,418
ARKANSAS Arkansas Development Finance Authority,
Single-Family Mortgage Revenue, Series 1985 A,
8.3%, 2/1/95 . . . . . . . . . . . . . . . . . . . 470,000 AA 470,000
CALIFORNIA California General Obligation:
5.5%, 4/1/07 (b) . . . . . . . . . . . . . . . . . 3,000,000 AAA 2,787,210
8%, 5/1/03 (b) . . . . . . . . . . . . . . . . . . 8,000,000 AAA 9,058,640
California Housing Finance Agency, Multi-Unit Rental
Housing Revenue, Series A, 7.25%, 8/1/98 . . . . . 2,270,000 A 2,357,872
California State Public Works Lease Board Revenue:
Del Norte Prison, Series C, 4.75%, 12/1/05 . . . . . 4,750,000 A+ 4,040,540
Department of Corrections, Del Norte/Imperial,
Series C, 4.7%, 12/1/03 (b) . . . . . . . . . . . 2,000,000 AAA 1,781,580
California Statewide Communities Development
Authority, Certificate of Participation,
Children's Hospital:
4.8%, 6/1/04 (b) . . . . . . . . . . . . . . . . . 2,790,000 AAA 2,488,652
4.9%, 6/1/05 (b) . . . . . . . . . . . . . . . . . 2,835,000 AAA 2,521,052
Los Angeles County, CA, Transportation Sales Tax,
Series A, 6.9%, 7/1/21 Prerefunded 7/1/01 (c) . . 3,000,000 AAA 3,224,700
COLORADO Colorado Health Facilities Authority, Hospital
Revenue: Rocky Mountain Adventist Healthcare
Project, 6%, 2/1/98 . . . . . . . . . . . . . . . . 3,500,000 BBB 3,406,025
Rose Medical Center Project, 8.5%, 11/1/96 (b) . . 260,000 AAA 274,555
Denver, CO, City and County Airport Revenue:
8.375%, 8/1/96 . . . . . . . . . . . . . . . . . . 1,455,000 BBB 1,458,667
9.75%, 12/1/95 . . . . . . . . . . . . . . . . . . 3,080,000 BBB 3,091,211
10.5%, 12/1/00 . . . . . . . . . . . . . . . . . . 21,040,000 BBB 21,127,526
Larimer, Weld and Boulder Counties, CO,
Thompson School District, General Obligation,
No. R2-J, Zero Coupon, 12/15/95 (b) . . . . . . . . 1,000,000 AAA 953,550
CONNECTICUT Bristol, CT, Resource Recovery, Ogden Martin System,
6.125%, 7/1/03 (f) . . . . . . . . . . . . . . . . 10,635,000 A 10,270,220
Connecticut Development Authority, Airport Facility,
Series A, Windsor Locks Hotel, 5.8%, 10/1/97 . . . 7,610,000 AA 7,585,724
DISTRICT OF COLUMBIA District of Columbia, Certificate of Participation,
Series 1993:
6%, 1/1/97 . . . . . . . . . . . . . . . . . . . . 3,548,000 BBB 3,512,520
6.875%, 9/13/00 . . . . . . . . . . . . . . . . . 2,500,000 BBB 2,461,625
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER MEDIUM TERM TAX FREE FUND
- - - - - ----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
-----------
Principal Credit Market
Amount ($) Rating (e) Value ($)
- - - - - ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
District of Columbia, General Obligation:
5.625%, 6/1/02 (b) . . . . . . . . . . . . . 8,360,000 AAA 8,033,960
5.8%, 6/1/04 . . . . . . . . . . . . . . . . 6,950,000 AAA 6,648,509
8%, 6/1/05, Prerefunded 6/1/96 (c) . . . . . 4,000,000 AAA 4,220,040
Refunding, Series 1993 A, 4.85%, 6/1/04 (b). . 2,000,000 AAA 1,729,380
Refunding, Series B, 5.3%, 6/1/05 (b) . . . . 8,000,000 AAA 7,158,160
Series 1993 A-1, 5.875%, 6/1/05 (b) . . . . . 3,650,000 AAA 3,481,699
Series 1993 A, 4.95%, 6/1/05 (b) . . . . . . 3,940,000 AAA 3,383,436
Series B, 9.4%, 6/1/97, Prerefunded
6/1/95 (c) . . . . . . . . . . . . . . . . . 3,000,000 AAA 3,118,020
Series B, Zero Coupon, 6/1/01 (b) . . . . . . 7,100,000 AAA 4,831,408
Series C, 8.9%, 6/1/96 . . . . . . . . . . . 5,505,000 AAA 5,701,363
Series D, 4.7%, 12/1/99 (b) . . . . . . . . . 8,035,000 AAA 7,466,042
FLORIDA Sunrise, FL, Utility System Revenue, Series A1,
7.375%, 10/1/06 (b) . . . . . . . . . . . . . 2,400,000 AAA 2,498,232
Port Everglades Authority, FL, Port Authority
Improvement Bonds, Series A, Zero Coupon,
9/1/01(b) . . . . . . . . . . . . . . . . . . 4,305,000 AAA 2,940,530
GEORGIA Municipal Electric Authority of Georgia,
Power Revenue:
Series A, 5.1%, 1/1/05(b) . . . . . . . . . 3,750,000 AAA 3,425,025
Series U, 6.6%, 1/1/01 . . . . . . . . . . . 1,000,000 AA 1,043,130
HAWAII Hawaii Airport System Refunding, Series 1993,
5.95%, 7/1/03 (b) . . . . . . . . . . . . . . 3,750,000 AAA 3,772,313
ILLINOIS Alton, IL, Health Facilities Revenue,
6.7%, 2/15/00 . . . . . . . . . . . . . . . . 2,000,000 AAA 2,067,860
Chicago, IL, General Obligation:
6.2%, 1/1/04 (b) . . . . . . . . . . . . . . 1,110,000 AAA 1,130,668
School Finance Authority:
Series A, 4.9%, 6/1/05 (b) . . . . . . . . . 6,000,000 AAA 5,256,420
Series 1994 A, 4.5%, 6/1/02 (b) . . . . . . 4,000,000 AAA 3,521,920
Illinois Development Finance Authority,
Refunding Revenue, Commonwealth Edison,
5.3%, 1/15/04 . . . . . . . . . . . . . . . 5,000,000 BBB 4,471,450
Illinois Educational Facilities Authority
Revenue, Loyola University, Revenue
Refunding 1991 Series A, Zero Coupon,
7/1/02 (b) . . . . . . . . . . . . . . . . . 2,130,000 AAA 1,356,256
Illinois Health Facilities Authority,
Elmhurst Memorial Hospital, Series A:
4.85%, 1/1/02 (b) . . . . . . . . . . . . . 1,185,000 AAA 1,087,676
5.1%, 1/1/04 (b) . . . . . . . . . . . . . . 1,315,000 AAA 1,200,240
Evangelical Hospitals, Series B, 6.1%,
4/15/01 (b) . . . . . . . . . . . . . . . . 1,240,000 AAA 1,255,326
Franciscan Sisters Health Care Corporation,
1992 Series C, 5.5%, 9/1/02 (b) . . . . . . 2,045,000 AAA 1,972,975
Sherman Hospital Project, Revenue Refunding,
6.5%, 8/1/01 (b) . . . . . . . . . . . . . . 1,025,000 AAA 1,058,641
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- - - - - ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
--------------------------
Principal Credit Market
Amount ($) Rating (e) Value ($)
- - - - - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sisters Services, Series C:
6.1%, 6/1/00 (b). . . . . . . . . . . . . . . . . . 1,500,000 AAA 1,526,130
6.2%, 6/1/01 (b). . . . . . . . . . . . . . . . . . 1,900,000 AAA 1,939,102
6%, 6/1/99 (b) . . . . . . . . . . . . . . . . . . 2,500,000 AAA 2,535,575
5.875%, 6/1/98 (b) . . . . . . . . . . . . . . . . 2,400,000 AAA 2,423,832
Kane, Cook, and Du Page Counties, IL, School
District, General Obligation, 6.75%, 1/1/03 (b) . . 1,000,000 AAA 1,051,630
Kendall, Kane and Will Counties, IL, School
District, Zero Coupon, 3/1/03 (b) . . . . . . . . . 1,345,000 AAA 816,240
Macon and Decatur County, IL, Public Building
Commission, Certificate of Participation, General
Obligation, 6.3%, 1/1/00 (b) . . . . . . . . . . . 1,320,000 AAA 1,351,733
McHenry County, IL, Conservation District,
Zero Coupon, 2/1/99 (b) . . . . . . . . . . . . . . 1,515,000 AAA 1,198,592
Metropolitan Pier and Exposition Authority of Illinois,
McCormick Place Expansion Project, Coupon
Receipts, Zero Coupon, 6/15/04 (b) . . . . . . . . 10,500,000 AAA 5,840,730
Rosemont, IL, Tax Increment, Secondary:
Series B, Zero Coupon, 12/1/02 (b) . . . . . . . . 2,785,000 AAA 1,729,401
Series C, Zero Coupon, 12/1/02 (b) . . . . . . . . 3,345,000 AAA 2,077,145
INDIANA Madison County, IN, Hospital Authority, Holy Cross
Health System, 6.7%, 12/1/02 (b). . . . . . . 1,385,000 AAA 1,452,394
Porter County, IN, Hospital Authority, Porter Memorial
Hospital, Series 1993, 5.2%, 6/1/05 (b) . . . . . . 1,500,000 AAA 1,364,565
IOWA Cedar Rapids, IA, Hospital Revenue, St. Luke's
Methodist Hospital, 5.85%, 8/15/04 (b) . . . . . 1,315,000 AAA 1,283,756
Iowa Certificate of Participation, 1992 Series A,
6.25%, 7/1/02 . . . . . . . . . . . . . . . . . . . 5,000,000 AAA 5,077,600
Iowa Lease Purchase Agreement, 7.65%, 6/15/95 621,918 AA 629,692
KANSAS Kansas City, KS, Utility System Revenue, Zero Coupon,
3/1/03 (b) . . . . . . . . . . . . . . . . . . . . 7,000,000 AAA 4,342,345
KENTUCKY Kentucky Turnpike Authority, Toll Road Revenue,
13.375%, 7/1/10, Prerefunded 8/15/95 (c) . . . . . 955,000 AAA 1,013,962
Economic Development, Revenue Refunding,
Series 1986 A, 7.7%, 1/1/00 . . . . . . . . . . . 700,000 A 736,757
LOUISIANA Louisiana State General Obligation, Series A, 7%,
5/1/02 (b) . . . . . . . . . . . . . . . . . . . . 3,000,000 AAA 3,203,010
St. Tammany Parish, LA, Sales Tax Revenue,
District #3, Series A, 11%, 12/1/96 (b) . . . . . . 1,065,000 AAA 1,170,680
MARYLAND Northeast Maryland Waste Disposal Authority,
Southwest Resource Recovery System Revenue,
Series 1993:
6.75%, 1/1/98 (b) . . . . . . . . . . . . . . . . 4,715,000 AAA 4,869,369
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER MEDIUM TERM TAX FREE FUND
- - - - - ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
---------
Principal Credit Market
Amount ($) Rating (e) Value ($)
- - - - - ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6.85%, 1/1/99 (b) . . . . . . . . . . . . . . . . . 1,500,000 AAA 1,564,725
MASSACHUSETTS Boston, MA, General Obligation, 4.9%, 7/1/07 (b) . . . 3,950,000 AAA 3,376,855
Brockton, MA, General Obligation, 7.75%, 12/15/95 . . . 1,675,000 A 1,729,438
Lawrence, MA, General Obligation, State Qualified
Bond, 5%, 9/15/02 . . . . . . . . . . . . . . . . . . 1,030,000 A 945,015
Massachusetts Bay Transportation Authority,
Series A, 5.3%, 3/1/05 . . . . . . . . . . . . . . . 2,500,000 A 2,284,300
Massachusetts General Obligation:
Refunding, Series A, 6.375%, 8/1/02 . . . . . . . . . 2,150,000 A 2,212,888
Series A, 6.4%, 8/1/03 . . . . . . . . . . . . . . . 1,000,000 A 1,028,480
Series C, 6.9%, 12/1/96 (b) . . . . . . . . . . . . . 1,000,000 AAA 1,028,920
Massachusetts Housing Finance Agency, 1992
Series C, FNMA Collateralized:
6.25%, 5/15/02 . . . . . . . . . . . . . . . . . . . 2,000,000 AAA 2,025,700
6.25%, 11/15/02 . . . . . . . . . . . . . . . . . . 3,420,000 AAA 3,466,307
Massachusetts Industrial Finance Authority:
Resource Recovery, North Andover Solid Waste,
Series A, 6.15%, 7/1/02 . . . . . . . . . . . . . . 3,250,000 BBB 3,194,620
Sturdy Memorial Hospital, 7.9%, 6/1/09 . . . . . . . 2,000,000 BBB 2,033,840
Massachusetts Municipal Wholesale Electric Co.,
Power Supply System Revenue, Series A,
6.625%, 7/1/03 . . . . . . . . . . . . . . . . . . . 3,165,000 BBB 3,229,819
Massachusetts Water Resource Authority, Series A,
7.25%, 4/1/01 . . . . . . . . . . . . . . . . . . . . 1,000,000 A 1,065,290
New England Education Loan Marketing Corp.,
Massachusetts Student Loan Revenue Refunding:
Issue A, 5.8%, 3/1/02 . . . . . . . . . . . . . . . 13,825,000 AAA 13,476,195
Issue E, 5%, 7/1/99 . . . . . . . . . . . . . . . . 8,000,000 A 7,570,880
New England Education Loan Marketing Corp.,
Massachusetts Student Loan Revenue Refunding,
Series C, 4.75%, 7/1/98 . . . . . . . . . . . . . . . 3,500,000 A 3,321,150
MICHIGAN Michigan Municipal Bond Authority Revenue, Local
Government Loan Program, School Improvement,
Zero Coupon:
AD Valorem, 5/15/01 (b) . . . . . . . . . . . . . . 3,065,000 AAA 2,110,743
AD Valorem, Series D, 5/15/02 (b) . . . . . . . . . 2,170,000 AAA 1,400,388
Series D, 12/1/03 (b) . . . . . . . . . . . . . . . 4,870,000 AAA 2,842,570
Michigan State Hospital, Sisters of Mercy:
4.5%, 8/15/01 (b) . . . . . . . . . . . . . . . . . . 2,755,000 AAA 2,455,256
1993 Series P, 4.6%, 8/15/02 (b) . . . . . . . . . . 2,025,000 AAA 1,791,963
MISSISSIPPI Mississippi Higher Education Assistance Corp., Student
Loan Revenue, 1992 Series A, 6.2%, 1/1/02 . . . . . . 1,200,000 A 1,174,068
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- - - - - -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
---------
Principal Credit Market
Amount ($) Rating (e) Value ($)
- - - - - -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MISSOURI Jackson County, MO, Industrial Development
Authority, St. Joseph Health Center, Series 1993,
4.8%, 7/1/03 (b) . . . . . . . . . . . . . . . . . . 3,615,000 AAA 3,249,054
NEBRASKA Omaha, NE, Public Power District, Electric Revenue,
4.5%, 2/1/04 . . . . . . . . . . . . . . . . . . . . 9,500,000 AA 8,199,545
NEVADA Nevada Housing Division, Single Family Mortgage,
5.95%, 4/1/05 . . . . . . . . . . . . . . . . . . . . 4,000,000 AA 3,804,320
Nye County, NV, School District, 8.875%, 5/1/96 (b) . . 500,000 AAA 522,325
NEW HAMPSHIRE New Hampshire Higher Education and Health
Facilities Authority, Hospital Revenue, Frisbie
Memorial Hospital, Series 1993, 5.25%, 10/1/99 . . . 3,215,000 BBB 3,076,659
NEW JERSEY New Jersey Economic Development Authority, Bad
Driver's Program, 7%, 7/1/04 (b) . . . . . . . . . . 2,500,000 AAA 2,682,775
NEW YORK Metropolitan Transportation Authority of New York,
Commuter Facilities Revenue:
6.75%, 7/1/00 . . . . . . . . . . . . . . . . . . . 1,200,000 BBB 1,242,768
6.9%, 7/1/01 . . . . . . . . . . . . . . . . . . . . 1,280,000 BBB 1,334,963
Metropolitan Transportation Authority of New York,
Transit Facilities Revenue:
6.75%, 7/1/00 . . . . . . . . . . . . . . . . . . . 2,270,000 BBB 2,350,903
6.9%, 7/1/01 . . . . . . . . . . . . . . . . . . . . 2,415,000 BBB 2,518,700
Series M, 5.3%, 7/1/06 (b) . . . . . . . . . . . . . 4,750,000 AAA 4,380,070
Series M, 5.5%, 7/1/08 (b) . . . . . . . . . . . . . 5,000,000 AAA 4,563,500
New York City Municipal Water Finance Authority,
Zero Coupon:
6/15/96 . . . . . . . . . . . . . . . . . . . . . . 1,000,000 A 958,170
12/15/95 . . . . . . . . . . . . . . . . . . . . . . 1,000,000 A 984,180
New York City General Obligation:
Series A, 7%, 8/1/04 . . . . . . . . . . . . . . . . 5,150,000 A 5,268,502
Series A, 7.2%, 8/15/95 . . . . . . . . . . . . . . . 4,320,000 A 4,357,282
Series 1992 B, 6.4%, 10/1/02 . . . . . . . . . . . . 4,905,000 A 4,880,720
Series B, 6.6%, 10/1/03 . . . . . . . . . . . . . . . 10,200,000 A 10,212,036
Series B, 7%, 2/1/96 . . . . . . . . . . . . . . . . 2,000,000 A 2,023,860
Series C, 6.3%, 8/1/03 (b) . . . . . . . . . . . . . 50,000 AAA 51,295
Series D, 5.5%, 8/15/04 . . . . . . . . . . . . . . . 2,800,000 A 2,521,932
Series D, 5.5% 8/15/04 (b) . . . . . . . . . . . . . 2,650,000 AAA 2,529,770
Series D, ETM, 7.75%, 8/1/95 ** . . . . . . . . . . . 145,000 AAA 147,464
Series D, 7.75%, 8/1/95 . . . . . . . . . . . . . . . 855,000 A 864,456
Series D, 7.875%, 8/1/97 . . . . . . . . . . . . . . 2,025,000 A 2,114,951
Series E, 5.4%, 8/1/04 . . . . . . . . . . . . . . . 3,000,000 A 2,836,620
Series 1994 H, 5.8%, 8/1/04 . . . . . . . . . . . . . 5,000,000 A 4,651,750
Series 1992 H, 6.9%, 2/1/01 . . . . . . . . . . . . . 6,000,000 A 6,157,860
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER MEDIUM TERM TAX FREE FUND
- - - - - -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
---------
Principal Credit Market
Amount ($) Rating (e) Value ($)
- - - - - -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Series A, ETM, 7.2%, 3/15/95 ** . . . . . . . . . . . . 1,000,000 A 1,005,890
Series C, ETM, 7.4%, 8/1/96 ** . . . . . . . . . . . . 1,560,000 AAA 1,611,652
Series D, ETM, 7.875%, 8/1/97 ** . . . . . . . . . . . 530,000 AAA 561,461
New York Dormitory Authority:
City University, Series A, 5.5%, 7/1/03 . . . . . . . . 9,250,000 BBB 8,664,568
College & University Pooled Capital Program,
7.8%, 12/1/05 (b) . . . . . . . . . . . . . . . . . . 1,390,000 AAA 1,499,143
State University, 6.8%, 5/15/00 (b) . . . . . . . . . . 3,915,000 AAA 4,113,373
New York State Medical Care Facilities,
Finance Agency Revenue, Mount Sinai Hospital,
Series 1983, 5.95%, 8/21/99 . . . . . . . . . . . . . . 10,265,000 AAA 10,136,072
New York State Thruway Authority, Zero
Coupon, 1/1/02 . . . . . . . . . . . . . . . . . . . . 3,155,000 BBB 1,962,726
New York State Urban Development Corporation,
Correctional Facilities Revenue Bond,
Revenue Refunding, Series 1993 A:
5.3%, 1/1/05 . . . . . . . . . . . . . . . . . . . . . 7,000,000 BBB 6,247,010
5.4%, 1/1/06 . . . . . . . . . . . . . . . . . . . . . 3,500,000 BBB 3,119,725
5.3%, 1/1/05 . . . . . . . . . . . . . . . . . . . . . 1,105,000 BBB 986,135
NORTH CAROLINA Charlotte, NC, Equipment Lease Agreement,
6.75%, 9/1/95 . . . . . . . . . . . . . . . . . . . . . 1,200,000 AA 1,213,872
North Carolina, General Obligation, 4.5%, 6/1/03 . . . . 8,000,000 AAA 7,142,320
NORTH DAKOTA Bismarck, ND, Hospital Revenue, St. Alexius
Medical Center, Series 1991, Zero Coupon,
5/1/00 (b) . . . . . . . . . . . . . . . . . . . . . . 2,850,000 AAA 2,086,827
Grand Forks, ND, Health Facilities, United Hospital
Obligation Group, Series A, 6%, 12/1/02 (b) . . . . . . 1,160,000 AAA 1,169,361
OHIO Hamilton County, OH, Health System Revenue,
Franciscan Sisters of the Poor Health System,
Providence Hospital, Series 1992, 6.375%, 7/1/03 . . . 4,495,000 BBB 4,196,172
PENNSYLVANIA Allegheny County, PA, Hospital Development Authority,
6.5%, 7/1/00 (b) . . . . . . . . . . . . . . . . . . . 1,000,000 AAA 1,034,460
Armstrong County, PA, Hospital Authority, St. Frances
Medical Center, Series A, 6.2%, 6/1/03 (b) . . . . . . . 3,090,000 AAA 3,136,288
Erie County, PA, School District,
Zero Coupon, ETM, 6/1/99 ** . . . . . . . . . . . . . . 2,085,000 A 1,619,670
Montgomery County, PA, Redevelopment Authority,
Multi-Family Housing Revenue Refunding,
KBF Associates, LP Pro, 6%, 7/1/04 . . . . . . . . . . 2,685,000 BBB 2,607,538
Pennsylvania Certificate of Participation, Lease
Revenue, 4.9%, 7/1/02 (b) . . . . . . . . . . . . . . . 4,380,000 AAA 4,010,547
Philadelphia, PA, Gas Works Revenue, Fourteenth
Series, 5.5%:
7/1/03 . . . . . . . . . . . . . . . . . . . . . . . . 4,645,000 AAA 4,429,704
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- - - - - --------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
---------
Principal Credit Market
Amount ($) Rating (e) Value ($)
- - - - - --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
7/1/04 . . . . . . . . . . . . . . . . . . . . . . . 4,250,000 AAA 4,009,663
Philadelphia, PA, General Obligation, Revenue
Refunding, Series A, 11.5%, 8/1/99 (b) . . . . . . . 1,000,000 AAA 1,223,280
Schuykill County, PA, Redevelopment Authority,
Lease Rental, Series A, 6.55%, 6/1/00 (b) . . . . . . 1,105,000 AAA 1,145,056
Somerset County, PA, General Authority,
Commonwealth Lease Revenue,
6.45%, 10/15/00 (b) . . . . . . . . . . . . . . . . 2,000,000 AAA 2,078,840
RHODE ISLAND Rhode Island Public Building Authority, State Public
Projects Revenue, Series A, 5%, 2/1/04 (b) . . . . . . 2,245,000 AAA 2,040,974
SOUTH CAROLINA South Carolina Jobs Economic Development Authority
Revenue, Franciscan Sisters of the Poor Health
System Inc., St. Francis Hospital, 6.375%, 7/1/03 . . 3,420,000 BBB 3,159,670
Sumter County, SC, Hospital Facility Revenue
Refunding, Tuomey Medical Center,
6.375%, 11/15/99 (b) . . . . . . . . . . . . . . . . 1,000,000 AAA 1,027,000
SOUTH DAKOTA South Dakota Student Loan Assistance Corp.
Revenue, Series A, 7%, 8/1/98 . . . . . . . . . . . . 1,000,000 A 1,029,790
TENNESSEE Knox County, TN, Health, Education and Housing
Facilities Board, Fort Sanders Alliance, 4.8%,
1/1/05 (b) . . . . . . . . . . . . . . . . . . . . . . 6,825,000 AAA 6,050,636
TEXAS Austin, TX, Utility District, Water, Sewer & Electric
Revenue, 11%, 11/15/02, Prerefunded 5/1/97 (c) . . . . 4,180,000 AAA 4,710,985
Austin, TX, Utility System Revenue:
Prior Lien, ETM, 9.25%, 11/15/95 ** . . . . . . . . . . 155,000 A 160,670
9.25%, 11/15/95 . . . . . . . . . . . . . . . . . . . . 895,000 A 924,168
Carrollton, TX, Farmers Branch Independent School
District, ETM, 9.4%, 6/1/96 ** . . . . . . . . . . . . 100,000 AAA 105,615
Dallas County , TX, Hospital District, 9.75%, 4/10/96 . 750,000 A 787,478
Dallas, TX, Civic Center, Senior Lien, 8.6%, 1/1/06 . . 1,115,000 A 1,152,687
Dallas-Fort Worth, TX, International Airport Revenue, .
Series A:
7.7%, 11/1/00 (b) . . . . . . . . . . . . . . . . . 780,000 AAA 850,754
7.75%, 11/1/01 (b) . . . . . . . . . . . . . . . . . 540,000 AAA 595,447
Harris County, TX, Toll Road Authority Revenue:
Senior Lien, 8.1%, 8/15/00 (b) . . . . . . . . . . . . 1,275,000 AAA 1,392,581
Sub Lien, Series A, Zero Coupon, 8/15/01 (b). . . . . . 3,235,000 AAA 2,195,465
Harris County, TX, Unlimited Tax, General Obligation,
8.8%, 10/1/95 . . . . . . . . . . . . . . . . . . . . 100,000 AAA 102,824
Harris County, TX, General Obligation, Flood Control
District, Zero Coupon, 10/1/00 (b) . . . . . . . . . 3,000,000 AAA 2,153,430
Lubbock, TX, Health Facilities Development Corp.,
Methodist Hospital, Series B, 5.3%, 12/1/04 (b) . . . 3,555,000 AAA 3,305,439
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER MEDIUM TERM TAX FREE FUND
- - - - - ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
-------------------
Principal Credit Market
Amount ($) Rating (e) Value ($)
- - - - - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Harris County, TX, Port of Houston Authority,
8.8%, 10/1/96 . . . . . . . . . . . . . . . . . . . 150,000 AA 154,136
San Antonio, TX, Electric & Gas, Refunding Revenue,
Series A, Zero Coupon, 2/1/02 (b) . . . . . . . . . 4,600,000 AAA 3,034,528
State of Texas, Tax and Revenue Anticipation Notes,
5%, 8/31/95 . . . . . . . . . . . . . . . . . . . . . 2,000,000 MIG1 2,003,520
Texas Municipal Power Agency, Zero Coupon,
9/1/04 (b) . . . . . . . . . . . . . . . . . . . . . 6,870,000 AAA 3,800,209
Travis County, TX, Housing Finance Corp., Series A,
8.625%, 9/1/95 (b) . . . . . . . . . . . . . . . . . 200,000 AAA 205,562
UTAH Intermountain Power Agency, UT, Power
Supply Revenue:
Series B, Zero Coupon, 7/1/01 (b) . . . . . . . . . 10,495,000 AAA 7,173,647
Series B, Zero Coupon, 7/1/02 (b) . . . . . . . . . 2,500,000 AAA 1,601,150
Series H, 9%, 7/1/19, Crossover Refunded
7/1/95 (d) . . . . . . . . . . . . . . . . . . . . 2,200,000 AA 2,273,986
Series I, 9%, 7/1/19, Crossover Refunded
7/1/95 (d) . . . . . . . . . . . . . . . . . . . . 2,500,000 AA 2,584,075
Salt Lake County, UT, Water Conservation District,
Series A, Zero Coupon, 10/1/03 (b) . . . . . . . . . 3,200,000 AAA 1,886,688
Utah Associated Municipal Power System,
Hunter Project, Refunding Revenue, Zero Coupon:
7/1/01 (b) . . . . . . . . . . . . . . . . . . . . . 5,895,000 AAA 4,009,131
7/1/03 (b) . . . . . . . . . . . . . . . . . . . . . 5,900,000 AAA 3,508,258
VIRGIN ISLANDS Virgin Islands, General Obligation, Public Finance
Authority Revenue, Matching Fund Loan, Series A:
6.7%, 10/1/99 . . . . . . . . . . . . . . . . . . . 1,690,000 NR 1,727,603
6.8%, 10/1/00 . . . . . . . . . . . . . . . . . . . 1,035,000 NR 1,059,519
VIRGINIA Southeastern, VA, Public Service Authority, Refunding,
Series A, 4.8%, 7/1/05 (b) . . . . . . . . . . . . . 9,500,000 AAA 8,337,390
WASHINGTON King County, WA, Water District #107,
ETM, 8.7%, 3/1/96 ** . . . . . . . . . . . . . . . . 120,000 AAA 124,692
Seattle, WA, Municipal Light and Power Revenue,
9.7%, 9/1/07, Prerefunded 9/1/95 (c) . . . . . . . . 1,380,000 AAA 1,453,237
Washington Health Care Facilities Authority:
Empire Health Services, Series 1993,
4.35%, 11/1/96 (b) . . . . . . . . . . . . . . . . . 1,760,000 AAA 1,722,336
Franciscan Health System, St. Joseph's/Tacoma,
5.2%, 1/1/04 (b) . . . . . . . . . . . . . . . . . . 2,160,000 AAA 1,984,716
Washington Public Power Power Supply System,
Nuclear Project #1, Refunding Revenue:
Series A, 5.25%, 7/1/03 (b) . . . . . . . . . . . . 10,000,000 AAA 9,310,800
Series A, 7%, 7/1/96 . . . . . . . . . . . . . . . . 1,000,000 AA 1,018,870
Series B, 5%, 7/1/01 . . . . . . . . . . . . . . . . 2,000,000 AA 1,851,980
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- - - - - ---------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
---------
Principal Credit Market
Amount ($) Rating (e) Value ($)
- - - - - ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Series B, 5.15%, 7/1/02 . . . . . . . . . . . 5,275,000 AA 4,872,254
Series B, 5.25%, 7/1/03 . . . . . . . . . . . 5,555,000 AA 5,100,101
Series D, 15%, 7/17/17,
Prerefunded 7/1/96 (c) . . . . . . . . . . . 2,595,000 AAA 3,034,100
Washington Public Power Supply System,
Nuclear Project #2, Refunding Revenue:
Series A, 6.3%, 7/1/01 . . . . . . . . . . . . 6,000,000 AA 6,063,600
Series A, 4.9%, 7/1/05 . . . . . . . . . . . . 4,000,000 AA 3,409,280
Series B, 5.15%, 7/1/02 . . . . . . . . . . . 6,085,000 AA 5,620,410
Washington Public Power Supply System,
Nuclear Project #3, Refunding Revenue:
Series B, Zero Coupon, 7/1/04 (b) . . . . . . 8,000,000 AAA 4,409,280
Series B, 7.15%, 7/1/01 . . . . . . . . . . . 1,310,000 AA 1,377,884
Series B, 5%, 7/1/01 . . . . . . . . . . . . . 6,210,000 AA 5,750,398
Series B, 5.15%, 7/1/02 . . . . . . . . . . . 3,165,000 AA 2,923,352
Series B, 5.25%, 7/1/03 . . . . . . . . . . . 6,100,000 AA 5,600,471
Series C, 5%, 7/1/05 (g) . . . . . . . . . . . 13,000,000 AA 11,219,910
Snohomish County, WA, Public Utility District #1,
Series 1991 B, 6.4%, 1/1/00 . . . . . . . . . . 2,000,000 A 2,055,800
WISCONSIN Wisconsin Health & Educational Facilities Authority:
Children's Hospital of Wisconsin Inc.,
Series 1993, 5.375%, 8/15/04 (b) . . . . . . . 3,000,000 AAA 2,795,640
Wheaton Franciscan Services:
5.8%, 8/15/04 (b) . . . . . . . . . . . . . . 2,425,000 AAA 2,355,281
6%, 8/15/02 (b) . . . . . . . . . . . . . . . 1,000,000 AAA 1,007,200
Columbia Hospital Inc., 6.125%, 11/15/01 (b) . . 1,000,000 AAA 1,013,600
WYOMING Wyoming Community Development Authority,
Single Family Mortgage Revenue, FHA Insured,
Zero Coupon, 6/1/96 . . . . . . . . . . . . . . 2,150,000 AA 1,937,118
-----------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(Cost $714,681,012) . . . . . . . . . . . . . . 690,847,413
-----------
===============================================================================================================
TOTAL INVESTMENT PORTFOLIO -- 100.0%
(Cost $723,481,012) (a) . . . . . . . . . . . 699,647,413
===========
<FN>
(a) The cost for federal income tax purposes was $723,481,012. At December 31, 1994, net
unrealized depreciation for all securities was $23,833,599. This consisted of
aggregate gross unrealized appreciation for all securities in which there was an excess
of market value over tax cost of $5,499,984 and aggregate gross unrealized
depreciation for all investment securities in which there was an excess of tax cost
over market value of $29,333,583.
(b) Bond is insured by one of these companies: AMBAC, FGIC, or MBIA.
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
SCUDDER MEDIUM TERM TAX FREE FUND
- - - - - -----------------------------------------------------------------------
- - - - - -----------------------------------------------------------------------
(c) Prerefunded: Bonds which are prerefunded are
collateralized by U.S. Treasury securi- ties which
are held in escrow and are used to pay principal
and interest on tax-exempt issue and to retire the
bonds in full at the earliest refunding date.
(d) Crossover refunded: Bonds which are crossover
refunded are secured by an escrow of securities
which is used to pay principal on the tax exempt
issue and retire the bonds in full at the earliest
refunding date, except in the case of default by
the issuer or inadequacy in the escrow account.
(e) All of the securities held have been determined to
be of appropriate credit quality as required by
the Fund's investment objectives. Credit ratings
are either Standard & Poor's Corporation, Moody's
Investors Service, Inc. or Fitch Investors
Service, Inc. Unrated securities (NR) have been
determined to be of comparable quality to rated
eligible securities.
(f) When-issued or forward delivery securities (See
Note A in Notes to Financial Statements).
(g) At December 31, 1994, this security, in whole, has
been segregated to cover when-issued or forward
delivery securities.
* Floating rate and monthly, weekly, or daily demand
notes are securities whose yields vary with a
designated market index or market rate, such as
the coupon-equivalent of the Treasury bill rate.
Variable rate demand notes are securities whose
yields are periodically reset at levels that are
generally comparable to tax-exempt commercial
paper. These securities are payable on demand
within seven calendar days and normally
incorporate an irrevocable letter of credit or
line of credit from a major bank. These notes are
carried, for purposes of calculating average
weighted maturity, at the longer of the period
remaining until the next rate change or to the
extent of the demand period.
** ETM: Bonds bearing the description ETM (escrowed
to maturity) are collateralized by U.S. Treasury
securities which are held in escrow by a
trustee and used to pay principal and interest on
bonds so designated.
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
- - - - - --------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- - - - - --------------------------------------------------------------------------------------------
DECEMBER 31, 1994
- - - - - --------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments, at market (identified cost $723,481,012)
(Note A) . . . . . . . . . . . . . . . . . . . . . . $ 699,647,413
Cash . . . . . . . . . . . . . . . . . . . . . . . . . 3,287,219
Receivables:
Investments sold . . . . . . . . . . . . . . . . . . 5,693,914
Interest . . . . . . . . . . . . . . . . . . . . . . 11,694,670
Fund shares sold . . . . . . . . . . . . . . . . . . 1,142,665
-------------
Total assets . . . . . . . . . . . . . . . . . . 721,465,881
LIABILITIES
Payables:
Investments purchased . . . . . . . . . . . . . . . $ 3,229,846
When-issued and forward delivery securities (Note A) 10,555,238
Dividends . . . . . . . . . . . . . . . . . . . . . 1,327,105
Fund shares redeemed . . . . . . . . . . . . . . . . 4,456,684
Accrued management fee (Note C) . . . . . . . . . . 309,717
Accrued expenses (Note C) . . . . . . . . . . . . . 150,278
------------
Total liabilities . . . . . . . . . . . . . . . . 20,028,868
-------------
Net assets, at market value . . . . . . . . . . . . . . $ 701,437,013
=============
NET ASSETS
Net assets consist of:
Net unrealized depreciation on investments . . . . . $ (23,833,599)
Accumulated net realized loss . . . . . . . . . . . (85,031)
Shares of beneficial interest . . . . . . . . . . . 674,861
Additional paid-in capital . . . . . . . . . . . . . 724,680,782
-------------
Net assets, at market value . . . . . . . . . . . . . . $ 701,437,013
=============
NET ASSET VALUE, offering and redemption price per
share ($701,437,013 -:- 67,486,134 outstanding
shares of beneficial interest, $.01 par value,
unlimited number of shares authorized) . . . . . . $10.39
======
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER MEDIUM TERM TAX FREE FUND
- - - - - --------------------------------------------------------------------------------
<CAPTION>
STATEMENT OF OPERATIONS
- - - - - --------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 1994
- - - - - --------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest . . . . . . . . . . . . . . . . . . $ 49,170,281
Expenses:
Management fee (Note C) . . . . . . . . . . . $4,150,246
Services to shareholders (Note C) . . . . . . 744,148
Trustees' fees (Note C) . . . . . . . . . . . 36,460
Custodian fees . . . . . . . . . . . . . . . 234,977
Reports to shareholders . . . . . . . . . . . 158,229
Legal . . . . . . . . . . . . . . . . . . . . 25,015
Auditing . . . . . . . . . . . . . . . . . . 47,713
State registration . . . . . . . . . . . . . 46,902
Other . . . . . . . . . . . . . . . . . . . . 82,617 5,526,307
---------- ------------
Net investment income . . . . . . . . . . . . 43,643,974
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT TRANSACTIONS
Net realized gain on investments . . . . . . 1,334,624
Net unrealized depreciation on investments
during the period . . . . . . . . . . . . (81,623,664)
------------
Net loss on investments . . . . . . . . . . . (80,289,040)
------------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS . . . . . . . . . . . . . . . . $(36,645,066)
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
- - - - - ---------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- - - - - ---------------------------------------------------------------------------------------
<CAPTION>
YEARS ENDED DECEMBER 31,
-----------------------------------
INCREASE (DECREASE) IN NET ASSETS 1994 1993
- - - - - ---------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income . . . . . . . . . . . . . $ 43,643,974 $ 47,547,165
Net realized gain from investments . . . . . . 1,334,624 7,169,142
Net unrealized appreciation (depreciation)
on investments during the period . . . . . . (81,623,664) 35,118,275
-------------- --------------
Net increase (decrease) in net assets
resulting from operations . . . . . . . . . (36,645,066) 89,834,582
Distributions to shareholders: -------------- --------------
From net investment income ($.53 and $.60 per
share, respectively) . . . . . . . . . . . . (43,643,974) (47,547,165)
From net realized gains from investment -------------- --------------
transactions ($.05 and $.06 per share,
respectively) . . . . . . . . . . . . . . . (3,856,845) (5,211,174)
-------------- --------------
Fund share transactions:
Proceeds from shares sold . . . . . . . . . . . 242,143,475 642,445,394
Net asset value of shares issued to
shareholders in reinvestment of
distributions . . . . . . . . . . . . . . . 30,767,915 32,691,411
Cost of shares redeemed . . . . . . . . . . . . (504,752,983) (355,778,251)
-------------- --------------
Net increase (decrease) in net assets from
Fund share transactions . . . . . . . . . . (231,841,593) 319,358,554
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS . . . . . . . (315,987,478) 356,434,797
Net assets at beginning of period . . . . . . . 1,017,424,491 660,989,694
-------------- --------------
NET ASSETS AT END OF PERIOD . . . . . . . . . . $ 701,437,013 $1,017,424,491
============== ==============
OTHER INFORMATION
INCREASE (DECREASE) IN FUND SHARES
Shares outstanding at beginning of period . . . 89,545,863 60,842,736
-------------- -------------
Shares sold . . . . . . . . . . . . . . . . . . 22,098,846 57,535,746
Shares issued to shareholders in reinvestment
of distributions . . . . . . . . . . . . . . 2,858,978 2,916,150
Shares redeemed . . . . . . . . . . . . . . . . (47,017,553) (31,748,769)
-------------- -------------
Net increase (decrease) in Fund shares. . . . . (22,059,729) 28,703,127
-------------- -------------
Shares outstanding at end of period . . . . . . 67,486,134 89,545,863
============== =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER MEDIUM TERM TAX FREE FUND
FINANCIAL HIGHLIGHTS
THE FOLLOWING TABLE INCLUDES SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT
EACH PERIOD AND OTHER PERFORMANCE INFORMATION DERIVED FROM THE FINANCIAL STATEMENTS.
<CAPTION>
Years Ended December 31,
----------------------------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period. . . . $11.36 $10.86 $10.62 $10.11 $10.04 $10.02 $10.07 $10.34 $10.03 $ 9.67
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income from investment
operations:
Net investment income (a) .53 .60 .65 .67 .54 .56 .54 .54 .62 .68
Net realized and
unrealized gain
(loss) on investments. . (.92) .56 .27 .52 .07 .02 (.05) (.22) .41 .36
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment
operations . . . . . . . (.39) 1.16 .92 1.19 .61 .58 .49 .32 1.03 1.04
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Less distributions from:
From net investment
income . . . . . . . . . (.53) (.60) (.65) (.67) (.54) (.56) (.54) (.54) (.62) (.68)
From net realized
gains on investments . . (.05) (.06) (.03) (.01) -- -- -- (.05) (.10) --
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total distributions. . . . (.58) (.66) (.68) (.68) (.54) (.56) (.54) (.59) (.72) (.68)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period. . . . . . $10.39 $11.36 $10.86 $10.62 $10.11 $10.04 $10.02 $10.07 $10.34 $10.03
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (%) (B). . . . (3.50) 10.94 8.93 12.13 6.29 6.00 4.92 3.23 10.54 11.02
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end of
period ($ millions). . . . 701 1,017 661 268 27 54 99 125 104 59
Ratio of operating expenses
net, to average daily net
assets (%) (a) . . . . . . .63 .14 -- -- .97 .91 .79 .80 .82 .85
Ratio of net investment
income to average
net assets (%) . . . . . . 4.94 5.35 6.07 6.44 5.37 5.62 5.05 5.37 6.00 6.76
Portfolio turnover rate (%) 33.8 37.3 22.4 14.0 116.9 15.7 31.2 32.6 44.3 132.2
(a) Portion of expenses
reimbursed by the
Adviser. . . . . . . . $ -- $ .005 $ .014 $ .020 $ .001 $ -- $ -- $ -- $ -- $ --
Management fee and
other fees not
imposed. . . . . . . . $ .01 $ .063 $ .064 $ .062 $ .002 $ -- $ -- $ -- $ -- $ .001
Annualized ratio of operating expenses, including expenses reimbursed, management fee and other expenses not imposed, to average
daily net assets aggregated 0.71%, 0.75%, 0.80%, 0.88% and 1.00% for the years ended December 31, 1994, 1993, 1992, 1991 and
1990, respectively.
(b) Total returns may have been higher due to maintenance of the Fund's expenses.
On November 1, 1990, the Fund adopted its present name and objective. Prior to that date, the Fund was known as the 1990
Portfolio of the Scudder Tax Free Target Fund and its objective was to provide high tax-free income and current liquidity.
Financial information for each of the six years in the period ended December 31, 1990 should not be considered representative
of the present Fund.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- - - - - ------------------------------------------------------------------------------
A. SIGNIFICANT ACCOUNTING POLICIES
- - - - - ------------------------------------------------------------------------------
Scudder Medium Term Tax Free Fund (the "Fund") is a diversified series of
Scudder Tax Free Trust, a Massachusetts business trust (the "Trust"), which is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company. The policies described below are followed
consistently by the Fund in the preparation of its financial statements in
conformity with generally accepted accounting principles.
SECURITY VALUATION. Portfolio debt securities with remaining maturities greater
than sixty days are valued by pricing agents approved by the Officers of the
Fund, which prices reflect broker/dealer-supplied valuations and electronic
data processing techniques. If the pricing agents are unable to provide such
quotations, the most recent bid quotation supplied by a bona fide market maker
shall be used. All other debt securities are valued at their fair value as
determined in good faith by the Valuation Committee of the Trustees. Short-term
investments having a maturity of sixty days or less are valued at amortized
cost.
WHEN-ISSUED AND FORWARD DELIVERY SECURITIES. The Fund may purchase securities
on a when-issued or forward delivery basis, for payment and delivery at a later
date. The price of such securities, which may be expressed in yield terms, is
fixed at the time the commitment to purchase is made, but delivery and payment
take place at a later time. At the time the Fund makes the commitment to
purchase a security on a when-issued or forward delivery basis, it will record
the transaction and reflect the value of the security in determining its net
asset value. During the period between purchase and settlement, no payment is
made by the Fund to the issuer and 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.
AMORTIZATION AND ACCRETION. All premiums and original issue discounts are
amortized/accreted for both tax and financial reporting purposes.
FEDERAL INCOME TAXES. The Fund's policy is to comply with the requirements of
the Internal Revenue Code which are applicable to regulated investment
companies and to distribute all of its taxable and tax-exempt income to its
shareholders. The Fund accordingly paid no federal income taxes and no
provision for federal income taxes was required.
<PAGE>
SCUDDER MEDIUM TERM TAX FREE FUND
- - - - - ------------------------------------------------------------------------------
DISTRIBUTION OF INCOME AND GAINS. All of the net investment income of the Fund
is declared as a dividend to shareholders of record as of the close of business
each day and is paid to shareholders monthly. During any particular year, net
realized gains from investment transactions, in excess of available capital
loss carryforwards, would be taxable to the Fund if not distributed and,
therefore, will be distributed to shareholders. An additional distribution may
be made to the extent necessary to avoid the payment of a four percent federal
excise tax.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax
regulations which may differ from generally accepted accounting principles.
These differences relate primarily to investments in futures and certain
securities sold at a loss. As a result, net investment income and net realized
gain (loss) on investment transactions for a reporting period may differ
significantly from distributions during such period. Accordingly, the Fund may
periodically make reclassifications among certain of its capital accounts
without impacting the net asset value of the Fund.
The Fund uses the specific identification method for determining realized gain
or loss on investments for both financial and federal income tax reporting
purposes.
OTHER. Investment transactions are accounted for on a trade date basis.
Interest income is accrued pro rata to the earlier of call or maturity.
B. PURCHASES AND SALES OF SECURITIES
- - - - - ------------------------------------------------------------------------------
For the year ended December 31, 1994 purchases and sales of investments
(excluding short-term) aggregated $289,648,447 and $518,018,713, respectively.
C. RELATED PARTIES
- - - - - ------------------------------------------------------------------------------
Under the Management Agreement (the "Management Agreement") with Scudder,
Stevens & Clark, Inc. (the "Adviser"), the Adviser directs the investments of
the Fund in accordance with its investment objective, policies, and
restrictions. The Adviser determines the securities, instruments, and other
contracts relating to investments to be purchased, sold or entered into by the
Fund. In addition to portfolio management services, the Adviser provides
certain administrative services in accordance with the Management Agreement.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- - - - - -------------------------------------------------------------------------------
The management fee payable under the Management Agreement is equal to an annual
rate of 0.60% of the first $500,000,000 of the Fund's average daily net assets
and 0.50% of such assets in excess of $500,000,000 computed and accrued daily
and payable monthly. The Management Agreement provides that if the Fund's
expenses, exclusive of taxes, interest, and extraordinary expenses, exceed
specified limits, such excess, up to the amount of the management fee, will be
paid by the Adviser. In addition, for the period January 1, 1994 to April 30,
1994 the Adviser voluntarily agreed to maintain the total annualized expenses
of the Fund at 0.50% of average daily net assets of the Fund. Effective May 1,
1994, the Adviser agreed to maintain the annualized expenses at 0.70% until
April 30, 1995. For the year ended December 31, 1994, the management fee
aggregated $4,920,420 of which $770,174 was not imposed and $309,717 is unpaid
at December 31, 1994.
Scudder Service Corporation ("SSC"), a wholly-owned subsidiary of the Adviser,
is the transfer, dividend paying and shareholder service agent for the Fund.
For the year ended December 31, 1994 the amount charged to the Fund by SSC
amounted to $554,165 of which $40,709 is unpaid at December 31, 1994.
The Fund pays each Trustee not affiliated with the Adviser $4,000 annually,
plus specified amounts for attended board and committee meetings. For the year
ended December 31, 1994, Trustees' fees aggregated $36,460.
<PAGE>
SCUDDER MEDIUM TERM TAX FREE FUND
REPORT OF INDEPENDENT ACCOUNTANTS
- - - - - -----------------------------------------------------------------------
TO THE TRUSTEES OF SCUDDER TAX FREE TRUST AND THE SHAREHOLDERS OF SCUDDER
MEDIUM TERM TAX FREE FUND:
We have audited the accompanying statement of assets and liabilities of Scudder
Medium Term Tax Free Fund, including the investment portfolio, as of December
31, 1994, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the ten years in the
period then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1994, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Scudder Medium Term Tax Free Fund as of December 31, 1994, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each
of the ten years in the period then ended in conformity with generally accepted
accounting principles.
Boston, Massachusetts COOPERS & LYBRAND L.L.P.
February 10, 1995
<PAGE>
TAX INFORMATION
- - - - - ------------------------------------------------------------------------------
By now shareholders for whom year-end tax reporting is required by the IRS
should have received their Form 1099-DIV and tax information letter from the
Fund.
Of the dividends paid from net investment income for the fiscal year ended
December 31, 1994, $43,643,974 were exempt interest dividends which are tax
exempt for regular federal income tax purposes, and are not an item of tax
preference for purposes of the federal alternative minimum tax, if applicable.
Pursuant to section 852 of the Internal Revenue Code, the Fund designates
$1,734,414 as capital gain dividends for the year ended December 31, 1994.
Please consult a tax adviser if you have questions about federal or state
income tax laws, or on how to prepare your tax returns. If you have specific
questions about your Scudder Fund account, please call a Scudder Service
Representative at 1-800-225-5163.
<PAGE>
OFFICERS AND TRUSTEES
David S. Lee*
President and Trustee
Dawn-Marie Driscoll
Trustee; Attorney and Corporate Director
Peter B. Freeman
Trustee; Corporate Director and Trustee
Wesley W. Marple, Jr.
Trustee; Professor of Business Administration, Northeastern
University College of Business Administration
Juris Padegs*
Trustee
Jean C. Tempel
Trustee; Director and Executive Vice President, Safeguard
Scientifics, Inc.
Donald C. Carleton*
Vice President
Jerard K. Hartman*
Vice President
Thomas W. Joseph*
Vice President
Thomas F. McDonough*
Vice President and Secretary
Pamela A. McGrath*
Vice President and Treasurer
Edward J. O'Connell*
Vice President and Assistant Treasurer
Coleen Downs Dinneen*
Assistant Secretary
* Scudder, Stevens & Clark, Inc.
INVESTMENT PRODUCTS AND SERVICES
The Scudder Family of Funds
Money market
Scudder Cash Investment Trust
Scudder U.S. Treasury Money Fund
Tax free money market+
Scudder Tax Free Money Fund
Scudder California Tax Free Money Fund*
Scudder New York Tax Free Money Fund*
Tax free+
Scudder California Tax Free Fund*
Scudder High Yield Tax Free Fund
Scudder Limited Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder Massachusetts Limited Term Tax Free Fund*
Scudder Massachusetts Tax Free Fund*
Scudder Medium Term Tax Free Fund
Scudder New York Tax Free Fund*
Scudder Ohio Tax Free Fund*
Scudder Pennsylvania Tax Free Fund*
Growth and Income
Scudder Balanced Fund
Scudder Growth and Income Fund
Income
Scudder Emerging Markets Income Fund
Scudder GNMA Fund
Scudder Income Fund
Scudder International Bond Fund
Scudder Short Term Bond Fund
Scudder Short Term Global Income Fund
Scudder Zero Coupon 2000 Fund
Growth
Scudder Capital Growth Fund
Scudder Development Fund
Scudder Global Fund
Scudder Global Small Company Fund
Scudder Gold Fund
Scudder Greater Europe Growth Fund
Scudder International Fund
Scudder Latin America Fund
Scudder Pacific Opportunities Fund
Scudder Quality Growth Fund
Scudder Value Fund
The Japan Fund
Retirement Plans and Tax-Advantaged Investments
IRAs
Keogh Plans
Scudder Horizon Plan+++* (a variable annuity)
401(k) Plans
403(b) Plans
SEP-IRAs
Profit Sharing and Money Purchase Pension Plans
Closed-end Funds#
The Argentina Fund, Inc.
The Brazil Fund, Inc.
The First Iberian Fund, Inc.
The Korea Fund, Inc.
The Latin America Dollar Income Fund, Inc.
Montgomery Street Income Securities, Inc.
Scudder New Asia Fund, Inc.
Scudder New Europe Fund, Inc.
Scudder World Income Opportunities Fund, Inc.
Institutional Cash Management
Scudder Institutional Fund, Inc.
Scudder Fund, Inc.
Scudder Treasurers Trust(tm)++
For complete information on any of the above Scudder funds, including
management fees and expenses, call or write for a free prospectus.
Read it carefully before you invest or send money. +A portion of the
income from the tax-free funds may be subject to federal, state and
local taxes. *Not available in all states. +++A no-load variable
annuity contract provided by Charter National Life Insurance Company
and its affiliate, offered by Scudder's insurance agencies,
1-800-225-2470. #These funds, advised by Scudder, Stevens & Clark,
Inc., are traded on various stock exchanges. ++For information on
Scudder Treasurers Trust(tm), an institutional cash management service
that utilizes certain portfolios of Scudder Fund, Inc. ($100,000
minimum), call: 1-800-541-7703.
HOW TO CONTACT SCUDDER
Account Service and Information
For existing account service and transactions
SCUDDER INVESTOR RELATIONS
1-800-225-5163
For account updates, prices, yields, exchanges and redemptions
SCUDDER AUTOMATED INFORMATION LINE (SAIL)
1-800-343-2890
Investment Information
To receive information about the Scudder funds, for additional
applications and prospectuses, or for investment questions
SCUDDER INVESTOR RELATIONS
1-800-225-2470
For establishing 401(k) and 403(b) plans
SCUDDER DEFINED CONTRIBUTION SERVICES
1-800-323-6105
Please address all correspondence to
THE SCUDDER FUNDS
P.O. BOX 2291
BOSTON, MASSACHUSETTS
02107-2291
Or stop by a Scudder Funds Center
Many shareholders enjoy the personal, one-on-one service of the
Scudder Funds Centers. Check for a Funds Center near you_they can
be found in the following cities:
Boca Raton
Boston
Chicago
Cincinnati
Los Angeles
New York
Portland, OR
San Diego
San Francisco
Scottsdale
For information on Scudder Treasurers Trust(tm), an institutional cash
management service for corporations, non-profit organizations and
trusts which utilizes certain portfolios of Scudder Fund, Inc.*
($100,000 minimum), call: 1-800-541-7703.
For information on Scudder Institutional Funds,* funds designed to
meet the broad investment management and service needs of banks and
other institutions, call:
1-800-854-8525.
Scudder Investor Relations and Scudder Funds Centers are services
provided through Scudder Investor Services, Inc., Distributor.
* 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.
Celebrating 75 Years of Serving Investors
Established in 1919 by Theodore Scudder, Sidney Stevens, and F.
Haven Clark, Scudder, Stevens & Clark was the first independent
investment counsel firm in the United States. Since its birth,
Scudder's pioneering spirit and commitment to professional long-term
investment management have helped shape the investment industry. In
1928, we introduced the nation's first no-load mutual fund. Today we
offer 36 pure no load(tm) funds, including the first international
mutual fund offered to U.S. investors.
Over the years, Scudder's global investment perspective and
dedication to research and fundamental investment disciplines have
helped Scudder become one of the largest and most respected investment
managers in the world. Though times have changed since our beginnings,
we remain committed to our longstanding principles: managing money
with integrity and distinction, keeping the interests of our clients
first; providing access to investments and markets that may not be
easily available to individuals; and making investing as simple and
convenient as possible through friendly, comprehensive service.
