SCUDDER
INVESTMENTS(SM)
[LOGO]
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BOND/TAX FREE
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Scudder California Tax
Free Money Fund
Fund #087
Annual Report
March 31, 2000
Scudder California Tax Free Money Fund seeks income that is exempt from
California personal and regular federal income taxes and is consistent with
maintaining a stable $1.00 share price.
No-load funds with no commissions to buy, sell, or exchange shares.
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Contents
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3 Portfolio Management Discussion
4 Investment Portfolio
7 Financial Statements
10 Financial Highlights
11 Notes to Financial Statements
14 Report of Independent Accountants
15 Tax Information
16 Officers and Trustees
17 Investment Products and Services
19 Scudder Solutions
2
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Portfolio Management Discussion
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March 31, 2000
Scudder California Tax Free Money Fund posted a 2.48% total
return for the year ended March 31, 2000. The fund's 7-day
effective yield as of March 31 was 2.50%. For investors in
the highest combined state and federal income tax bracket,
the fund's yield was equivalent to a 4.56% compounded
yield. The fund's average maturity was 13 days as of March
31, 2000, compared with 27 days twelve months earlier. The
fund continues to invest in variable rate demand notes,
tax-free commercial paper, and tax-free notes. The fund
also continues to emphasize high quality issuers and
guarantors.
3
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Investment Portfolio as of March 31, 2000
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Principal
Amount ($) Value ($)
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Municipal Investments 100.0%
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California
California State, General Obligation, Tax Exempt
Commercial Paper:
3.2%, 4/13/2000 ..................................... 1,000,000 1,000,000
3.35%, 4/13/2000 .................................... 1,000,000 1,000,000
California School Cash Reserve Program Authority,
Series 1999A, 4%, 7/3/2000 (b) ...................... 500,000 501,109
California Health Facilities Finance Authority, Catholic
Healthcare West, Series 1988C, Weekly Demand
Bond, 3.15%, 7/1/2020 (b)* .......................... 2,000,000 2,000,000
California Pollution Control Finance Authority:
Pacific Gas & Electric Company:
Series 1996E, Daily Demand Note, 3.65%,
11/1/2026* ...................................... 500,000 500,000
Series 1997D, AMT, Weekly Demand Note, 3.35%,
1/1/2010* ....................................... 1,500,000 1,500,000
Solid Waste Disposal:
Western Waste Industries, Series 1994A,
AMT, Weekly Demand Note, 3.55%, 10/1/2006* ...... 1,200,000 1,200,000
CR&R Inc. Project, Series 1995A,
AMT, Weekly Demand Note, 3.35%, 10/1/2010* ...... 1,355,000 1,355,000
Eastern Municipal Water District, CA, Water & Sewer
Revenues, Series 1993B, Weekly Demand Note,
3.15%, 7/1/2020 (b)* ................................ 2,100,000 2,100,000
Fontana, CA Unified School District, Series 1999, Tax
and Revenue Anticipation Note, 3.5%, 7/7/2000 ....... 2,000,000 2,001,642
Irvine, CA, Improvement Bond, Assessment District 89-10,
Series 1990, Daily Demand Bond, 3.4%, 9/2/2015* ..... 1,000,000 1,000,000
Irvine, CA, Ranch Water District, Daily Demand Bond,
3.4%, 4/1/2033* ..................................... 500,000 500,000
Kern County, CA, Certificate of Participation, Public
Facilities Project:
Series 1986A, Weekly Demand Bond,
3.15%, 8/1/2006* ................................ 1,000,000 1,000,000
Series 1986D, Weekly Demand Bond,
3.15%, 8/1/2006* ................................ 1,400,000 1,400,000
Los Angeles County Metropolitan Transportation
Authority, Sales Tax Revenue, Series 1996,
Weekly Demand Bond, 3.36%, 7/1/2017 (b)* ............ 1,500,000 1,500,000
The accompanying notes are an integral part of the financial statements.
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<TABLE>
<CAPTION>
Principal
Amount ($) Value ($)
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<S> <C> <C>
Los Angeles County, CA, Certificate of Participation:
Willowbrook Project, Series 1985, Weekly Demand
Note, 3.15%, 11/1/2015* ............................ 2,400,000 2,400,000
County Museum of Arts, Series 1985A, Weekly
Demand Note, 3.1%, 11/1/2005* ...................... 1,100,000 1,100,000
Los Angeles County, CA, Capital Asset Lease,
Revenue Tax Exempt Commercial Paper, 2.55%,
4/11/2000 ............................................ 3,200,000 3,200,000
Los Angeles, CA, Multi-Family Housing Revenue,
Series K, Weekly Demand Bond, 3.15%, 7/1/2010* ....... 3,000,000 3,000,000
Sacramento, CA, Utility District I, Tax Exempt
Commercial Paper:
3.1%, 4/7/2000 ..................................... 1,000,000 1,000,000
2.6%, 4/10/2000 .................................... 1,000,000 1,000,000
San Bernadino County, CA, Certificates of Participation,
County Center Refinancing, Series 1996, Weekly
Demand Note, 3.2%, 7/1/2015* ......................... 1,000,000 1,000,000
Santa Clara County, CA, Multi-Family Housing Authority,
Fox Chase I Project, Series 1985E, Weekly Demand Note,
3.15%, 11/1/2007 (b)* ................................ 1,000,000 1,000,000
Southern California Metropolitan Water Authority,
Tax Exempt Commercial Paper:
2.7%, 4/7/2000 ..................................... 1,000,000 1,000,000
2.55%, 4/11/2000 ................................... 1,000,000 1,000,000
University of California Regents, Tax Exempt
Commercial Paper, 3.2%, 4/12/2000 .................... 2,000,000 2,000,000
Vallejo, CA, Industrial Development Authority
Revenue, Series 1993A, Weekly Demand
Bond, AMT, 3.35%, 12/1/2023* ......................... 1,500,000 1,500,000
Ventura County, CA, Finance Authority, Tax Exempt
Commercial Paper, 3.3%, 4/6/2000 ..................... 1,000,000 1,000,000
Puerto Rico
Puerto Rico Commonwealth, Highway & Transportation
Authority, Transportation Revenue, Series A, Weekly
Demand Bond, 3.25%, 7/1/2028 (b)* .................... 2,000,000 2,000,000
Puerto Rico Government Bank, Tax Exempt
Commercial Paper:
3.65%, 4/10/2000 ................................... 700,000 700,000
3.4%, 4/26/2000 .................................... 800,000 800,000
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Total Municipal Investments (Cost $42,257,751 ) 42,257,751
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Total Investment Portfolio -- 100.0% (Cost $42,257,751) (a) 42,257,751
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</TABLE>
(a) The cost for federal income tax purposes was $42,257,751.
(b) Bond is insured by one of these companies: AMBAC, Capital Guaranty, FGIC,
FSA or MBIA/BIG.
The accompanying notes are an integral part of the financial statements.
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* 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.
AMT: Subject to alternative minimum tax
The accompanying notes are an integral part of the financial statements.
6
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Financial Statements
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Statement of Assets and Liabilities as of March 31, 2000
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Assets
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Investments in securities, at value
(cost $42,257,751) .......................................... $ 42,257,751
Cash ........................................................... 11,917
Interest receivable ............................................ 199,480
Receivable for Fund shares sold ................................ 42,357
Other assets ................................................... 930
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Total assets ................................................... 42,512,435
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Liabilities
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Dividends payable .............................................. 19,160
Payable for Fund shares redeemed ............................... 1,195,825
Accrued management fee ......................................... 39,781
Other accrued expenses and payables ............................ 33,647
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Total liabilities .............................................. 1,288,413
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Net assets, at value $ 41,224,022
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Net Assets
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Net assets consist of:
Accumulated net realized gain (loss) ........................... (82,479)
Paid-in capital ................................................ 41,306,501
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Net assets, at value $ 41,224,022
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Net Asset Value
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NetAsset Value, offering and redemption price per share
($41,224,022 / 41,235,794 outstanding shares of
beneficial interest, $.01 par value, unlimited number ---------------
of shares authorized) ....................................... $ 1.00
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The accompanying notes are an integral part of the financial statements.
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Statement of Operations for the year ended March 31, 2000
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Investment Income
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Interest ...................................................... $ 2,143,433
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Expenses:
Management fee ................................................ 351,312
Services to shareholders ...................................... 79,155
Custodian and accounting fees ................................. 39,065
Auditing ...................................................... 20,001
Legal ......................................................... 2,548
Trustees' fees and expenses ................................... 15,551
Reports to shareholders ....................................... 7,660
Registration fees ............................................. 14,914
Interest expense .............................................. 1,889
Other ......................................................... 4,917
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Total expenses, before expense reductions ..................... 537,012
Expense reductions ............................................ (115,445)
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Total expenses, after expense reductions ...................... 421,567
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Net investment income 1,721,866
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Realized and unrealized gain (loss) on investment transactions
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Net realized gain (loss) from investments ..................... (801)
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Net increase (decrease) in net assets resulting from operations $ 1,721,065
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The accompanying notes are an integral part of the financial statements.
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<TABLE>
<CAPTION>
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Statements of Changes in Net Assets
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Years Ended March 31,
Increase (Decrease) in Net Assets 2000 1999
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Operations:
<S> <C> <C>
Net investment income ........................................ $ 1,721,866 $ 1,717,867
Net realized gain (loss) from investment
transactions .............................................. (801) (806)
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Net increase (decrease) in net assets resulting
from operations ........................................... 1,721,065 1,717,061
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Distributions to shareholders from net
investment income: ........................................ (1,721,866) (1,717,867)
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Fund share transactions at net asset value of $1.00 per share:
Proceeds from shares sold .................................... 73,202,014 63,965,964
Reinvestment of distributions ................................ 1,473,033 1,496,686
Cost of shares redeemed ...................................... (104,804,397) (64,654,272)
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Net increase (decrease) in net assets from Fund
share transactions ........................................ (30,129,350) 808,378
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Increase (decrease) in net assets ............................ (30,130,151) 807,572
Net assets at beginning of period ............................ 71,354,173 70,546,601
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Net assets at end of period .................................. $ 41,224,022 $ 71,354,173
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</TABLE>
The accompanying notes are an integral part of the financial statements.
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<TABLE>
<CAPTION>
Financial Highlights
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The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
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Years Ended March 31, 2000 1999 1998 1997 1996
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<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.000 $1.000 $1.000 $1.000 $1.000
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Net investment income .025 .025 .029 .028 .032
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Less distributions from:
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Net investment income (.025) (.025) (.029) (.028) (.032)
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Net asset value, end of period $1.000 $1.000 $1.000 $1.000 $1.000
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Total Return (%) (a) 2.48 2.52 2.98 2.87 3.28
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Ratios to Average Net Assets and Supplemental Data
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Net assets, end of period ($ millions) 41 71 71 69 67
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Ratio of expenses before expense
reductions (%) .77 .79 .78 .79 .81
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Ratio of expenses after expense
reductions (%) .60 .60 .60 .60 .60
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Ratio of net investment income (%) 2.46 2.48 2.92 2.83 3.23
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</TABLE>
(a) Total returns would have been lower had certain expenses not been reduced.
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Notes to Financial Statements
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A. Description of the Fund
Scudder California Tax Free Money Fund (the "Fund"), a non-diversified series of
Scudder California Tax Free Trust (the "Trust") which is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company organized as a Massachusetts business trust.
B. Cessation of Operations
On February 7, 2000, the Board of Trustees approved the cessation of operations
of the Fund effective on or about May 5, 2000 (the "Closing Date"). Accordingly,
the Board has voted to redeem involuntarily the shares of any Fund shareholder
outstanding at that time. This may be a taxable event for shareholders with the
exception of those participating in a qualified defined contribution plan,
defined benefit plan or other qualified retirement vehicle. In conjunction with
approving the cessation of operations of the Fund, the Board approved closing
the Fund to new investors effective as of the close of business on February 7,
2000.
C. Significant Accounting Policies
The Fund's
financial statements are prepared in accordance with generally accepted
accounting principles which require the use of management estimates. The
policies described below are followed consistently by the Fund in the
preparation of its financial statements.
Security Valuation. The Fund values all portfolio securities utilizing the
amortized cost method permitted in accordance with Rule 2a-7 under the 1940 Act
and pursuant to which the Fund must adhere to certain conditions. Under this
method, which does not take into account unrealized gains or losses on
securities, an instrument is initially valued at its cost and thereafter assumes
a constant accretion/amortization to maturity of any discount/premium.
All other securities are valued at their fair value as determined in good faith
by the Valuation Committee of the Board of Trustees.
Federal Income Taxes. The Fund's policy is to comply with the requirements of
the Internal Revenue Code, as amended, which are applicable to regulated
investment companies and to distribute all of its taxable and tax-exempt income
to its shareholders. Accordingly, the Fund paid no federal income taxes and no
federal income tax provision was required.
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At March 31, 2000, the Fund had a net tax basis capital loss carryforward of
approximately $82,500, which may be applied against any realized net taxable
capital gains of each succeeding year until fully utilized, or until March 31,
2002 ($7,500), March 31, 2003 ($55,200), March 31, 2004 ($17,800), March 31,
2005 ($400) March 31, 2007 ($800) and March 31, 2008 ($800), the respective
expiration dates, or until liquidation of the Fund, whichever occurs first.
Distribution of Income and Gains. All of the net investment income of the Fund
is declared as a daily dividend and is distributed to shareholders monthly. 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 at least annually.
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. As a result, net
investment income (loss) 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. Investment Transactions and Investment Income.
Investment transactions are accounted for on the trade date. Interest income is
recorded on the accrual basis. Realized gains and losses from investment
transactions are recorded on an identified cost basis.
D. Related Parties
Under the Investment Management Agreement (the "Agreement") with Scudder Kemper
Investments, Inc. (the "Adviser"), the Adviser directs the investments of the
Fund in accordance with its investment objectives, policies and restrictions.
The Adviser determines the securities, instruments, and other contracts relating
to investments to be purchased, sold or entered into by the Fund. In addition to
portfolio management services, the Adviser provides certain administrative
services in accordance with the Agreement. The management fee payable under the
Agreement is equal to an annual rate of 0.50% of the Fund's average daily net
assets computed and accrued daily and payable monthly. The Adviser has agreed
not to impose all or a portion of its management fee until May 5, 2000 and
during such period to maintain the
12
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annualized expenses of the Fund at not more than 0.60% of average daily net
assets. For the year ended March 31, 2000, the Adviser did not impose a portion
of its fee amounting to $112,081 and the portion imposed amounted to $239,231,
which was equivalent to an annual effective rate of 0.34% of the Fund's average
daily net assets.
Scudder Service Corporation ("SSC"), a subsidiary of the Adviser, is the
transfer, dividend-paying and shareholder service agent for the Fund. For the
year ended March 31, 2000, the amount charged to the Fund by SSC aggregated
$52,140, of which $11,666 is unpaid at March 31, 2000.
Scudder Fund Accounting Corporation ("SFAC"), a subsidiary of the Adviser, is
responsible for determining the daily net asset value per share and maintaining
the portfolio and general accounting records for the Fund. For the year ended
March 31, 2000, the amount charged to the Fund by SFAC aggregated $30,000, of
which $5,000 is unpaid at March 31, 2000.
The Fund pays each of its Trustees not affiliated with the Adviser an annual
retainer allocated, plus specified amounts for attended board and committee
meetings. For the year ended March 31, 2000, Trustees' fees and expenses
aggregated $15,551.
E. Expense Off-Set Arrangements
The Fund has entered into arrangements with its custodian and transfer agent
whereby credits realized as a result of uninvested cash balances were used to
reduce a portion of the Fund's expenses. For the year ended March 31, 2000, the
Fund's custodian and transfer agent fees were reduced by $1,418 and $1,946,
respectively, under these arrangements.
F. Line of Credit
The Fund and several Scudder Funds (the "Participants") share in a $1 billion
revolving credit facility for temporary or emergency purposes, including the
meeting of redemption requests that otherwise might require the untimely
disposition of securities. The Participants are charged an annual commitment fee
which is allocated pro rata among each of the Participants. Interest is
calculated based on the market rates at the time of the borrowing. The Fund may
borrow up to a maximum of 33 percent of its net assets under the agreement.
13
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Report of Independent Accountants
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To the Trustees of Scudder California Tax Free Trust and
the Shareholders of Scudder California Tax Free Money Fund:
In our opinion, the accompanying statement of assets and
liabilities, including the investment portfolio, and the
related statements of operations and of changes in net
assets and the financial highlights present fairly, in all
material respects, the financial position of Scudder
California Tax Free Money Fund (the "Fund") at March 31,
2000, the results of its operations, the changes in its net
assets, and the financial highlights for each of the
periods indicated therein, in conformity with accounting
principles generally accepted in the United States. These
financial statements and financial highlights (hereafter
referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements
based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards
generally accepted in the United States, which require that
we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting
principles used and significant estimates made by
management, and evaluating the overall financial statement
presentation. We believe that our audits, which included
confirmation of securities at March 31, 2000 by
correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
As described in Note B, on February 7, 2000, the Trustees
voted to liquidate the Fund on or about May 5, 2000.
Boston, Massachusetts PricewaterhouseCoopers LLP
May 3, 2000
14
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Tax Information
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Of the dividends paid by Scudder California Tax Free Money
Fund from net investment income for the taxable year ended
March 31, 2000, 100% are designated as exempt interest
dividends for federal income tax purposes.
In addition, of the dividends paid by Scudder California Tax
Free Money Fund from April 1, 2000 through the liquidation
date, 100% are designated as exempt interest dividends for
federal income tax purposes.
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
account, please call 1-800-SCUDDER.
15
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Officers and Trustees
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Linda C. Coughlin** Eleanor R. Brennan*
o President and Trustee o Vice President
Henry P. Becton, Jr. Ann M. McCreary*
o Trustee; President and General o Vice President
Manager, WGBH Educational
Foundation Frank J. Rachwalski, Jr.*
o Vice President
Dawn-Marie Driscoll
o Trustee; President, Driscoll John Millette*
Associates; Executive Fellow, o Vice President and Secretary
Center for Business Ethics, Bentley
College John R. Hebble*
o Treasurer
Peter B. Freeman
o Trustee; Corporate Director and Caroline Pearson*
Trustee o Assistant Secretary
George M. Lovejoy, Jr. * Scudder Kemper Investments, Inc.
o Trustee; President and Director,
Fifty Associates
Wesley W. Marple, Jr.
o Trustee; Professor of Business
Administration, Northeastern
University, College of Business
Administration
Kathryn L. Quirk*
o Trustee, Vice President and
Assistant Secretary
Jean C. Tempel
o Trustee; Venture Partner, Internet
Capital Group
16
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Investment Products and Services
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1-800-SCUDDER www.scudder.com
<TABLE>
<CAPTION>
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The Scudder Family of Funds+++
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<S> <C>
Money Market U.S. Growth and Income
Scudder U.S. Treasury Money Fund Scudder Balanced Fund
Scudder Cash Investment Trust Scudder Dividend & Growth Fund
Scudder Money Market Series -- Scudder Growth and Income Fund***
Prime Reserve Shares* Scudder Select 500 Fund
Premium Shares* Scudder S&P 500 Index Fund
Managed Shares* Scudder Real Estate Investment Fund
Scudder Government Money Market
Series -- Managed Shares* U.S. Growth
Value
Tax Free Money Market+ Scudder Large Company Value Fund
Scudder Tax Free Money Fund Scudder Value Fund***
Scudder Tax Free Money Market Scudder Small Company Value Fund
Series -- Managed Shares* Scudder Micro Cap Fund
Scudder California Tax Free Money Fund** Growth
Scudder New York Tax Free Money Fund** Scudder Classic Growth Fund***
Scudder Large Company Growth Fund***
Tax Free+ Scudder Select 1000 Growth Fund
Scudder Limited Term Tax Free Fund Scudder Development Fund
Scudder Medium Term Tax Free Fund Scudder 21st Century Growth Fund
Scudder Managed Municipal Bonds
Scudder High Yield Tax Free Fund Global Equity
Scudder California Tax Free Fund** Worldwide
Scudder Massachusetts Limited Term Scudder Global Fund
Tax Free Fund** Scudder International Value Fund
Scudder Massachusetts Tax Free Fund** Scudder International Growth and
Scudder New York Tax Free Fund** Income Fund
Scudder Ohio Tax Free Fund** Scudder International Fund++
Scudder International Growth Fund
U.S. Income Scudder Global Discovery Fund***
Scudder Short Term Bond Fund Scudder Emerging Markets Growth Fund
Scudder GNMA Fund Scudder Gold Fund
Scudder Income Fund Regional
Scudder Corporate Bond Fund Scudder Greater Europe Growth Fund
Scudder High Yield Bond Fund Scudder Pacific Opportunities Fund
Scudder Latin America Fund
Global Income The Japan Fund, Inc.
Scudder Global Bond Fund
Scudder International Bond Fund Industry Sector Funds
Scudder Emerging Markets Income Fund Choice Series
Scudder Financial Services Fund
Asset Allocation Scudder Health Care Fund
Scudder Pathway Conservative Portfolio Scudder Technology Fund
Scudder Pathway Balanced Portfolio
Scudder Pathway Growth Portfolio Preferred Series
Scudder Tax Managed Growth Fund
Scudder Tax Managed Small Company Fund
</TABLE>
17
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1-800-SCUDDER www.scudder.com
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Retirement Programs and Education Accounts
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Retirement Programs Education Accounts
Traditional IRA Education IRA
Roth IRA UGMA/UTMA
SEP-IRA IRA for Minors
Inherited IRA
Keogh Plan
401(k), 403(b) Plans
Variable Annuities
Scudder Horizon Plan**+++ +++
Scudder Horizon Advantage**+++ +++ +++
<TABLE>
<CAPTION>
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Closed-End Funds#
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<S> <C>
The Argentina Fund, Inc. Montgomery Street Income Securities, Inc.
The Brazil Fund, Inc. Scudder Global High Income Fund, Inc.
The Korea Fund, Inc. Scudder New Asia Fund, Inc.
</TABLE>
For complete information on any of the above Scudder funds, including management
fees and expenses, call or write for a free prospectus. Read it carefully before
you invest or send money.
+++ Funds within categories are listed in order from expected least
risk to most risk. Certain Scudder funds or classes thereof may
not be available for purchase or exchange.
+ A portion of the income from the tax-free funds may be subject to
federal, state, and local taxes.
* A class of shares of the fund.
** Not available in all states.
*** Only the Scudder Shares of the fund are part of the Scudder Family
of Funds.
++ Only the International Shares of the fund are part of the Scudder
Family of Funds.
+++ +++ 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.
+++ +++ +++ A no-load variable annuity contract issued by Glenbrook Life and
Annuity Company and underwritten by Allstate Financial Services,
Inc., sold by Scudder's insurance agencies, 1-800-225-2470.
# These funds, advised by Scudder Kemper Investments, Inc., are
traded on the New York Stock Exchange and, in some cases, on
various other stock exchanges.
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Scudder Solutions
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1-800-SCUDDER www.scudder.com
Convenient Automatic Investment Plan
ways to invest,
quickly and A convenient investment program in which money is
reliably electronically debited from your bank account monthly to
regularly purchase fund shares and "dollar cost average" --
buy more shares when the fund's price is lower and fewer
when it's higher, which can reduce your average purchase
price over time.*
Automatic Dividend Transfer
The most timely, reliable, and convenient way to purchase
shares -- use distributions from one Scudder fund to
purchase shares in another, automatically (accounts with
identical registrations or the same social security or tax
identification number).
QuickBuy
Lets you purchase Scudder fund shares electronically,
avoiding potential mailing delays; money for each of your
transactions is electronically debited from a previously
designated bank account.
Payroll Deduction and Direct Deposit
Have all or part of your paycheck -- even government checks
-- invested in up to four Scudder funds at one time.
* Dollar cost averaging involves continuous investment in
securities regardless of price fluctuations and does not
assure a profit or protect against loss in declining
markets. Investors should consider their ability to
continue such a plan through periods of low price
levels.
Around-the- Scudder Automated Information Line: SAIL(TM) --
clock electronic 1-800-343-2890
account
service and Personalized account information, the ability to exchange
information, or redeem shares, and information on other Scudder funds
including some and services via touchtone telephone.
transactions
Scudder's Web Site -- www.scudder.com
Personal Investment Organizer: Offering account information
and transactions, interactive worksheets, prospectuses and
applications for all Scudder funds, plus your current asset
allocation, whenever your need them. Scudder's site also
provides news about Scudder funds, retirement planning
information, and more.
19
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1-800-SCUDDER www.scudder.com
Retirees and Automatic Withdrawal Plan
those who depend
on investment You designate the bank account, determine the schedule (as
proceeds for frequently as once a month) and amount of the redemptions,
living expenses and Scudder does the rest.
can enjoy these
convenient, Distributions Direct
timely, and
reliable Automatically deposits your fund distributions into the
automated bank account you designate within three business days after
withdrawal each distribution is paid.
programs
QuickSell
Provides speedy access to your money by electronically
crediting your redemption proceeds to the bank account you
previously designated.
For more Call a Scudder representative at
information about 1-800-SCUDDER
these services
Or visit our Web site at
www.scudder.com
Please address The Scudder Funds
all written PO Box 2291
correspondence Boston, Massachusetts
to 02107-2291
20
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About the Fund's Adviser
Scudder Kemper Investments, Inc. is one of the largest and most experienced
investment management organizations worldwide, managing more than $290 billion
in assets globally for mutual fund investors, retirement and pension plans,
institutional and corporate clients, insurance companies, and private family and
individual accounts.
Scudder Kemper Investments has a rich heritage of innovation, integrity, and
client-focused service. In 1997, Scudder, Stevens & Clark, Inc., founded over 80
years ago as one of the nation's first investment counsel organizations, joined
the Zurich Financial Services Group. As a result, Zurich's subsidiary, Zurich
Kemper Investments, Inc., with 50 years of mutual fund and investment management
experience, was combined with Scudder. Headquartered in New York, Scudder Kemper
Investments offers a full range of investment counsel and asset management
capabilities, based on a combination of proprietary research and disciplined,
long-term investment strategies. With its global investment resources and
perspective, the firm seeks opportunities in markets throughout the world to
meet the needs of investors.
Scudder Kemper Investments, Inc., the global asset management firm, is a member
of the Zurich Financial Services Group. The Zurich Financial Services Group is
an internationally recognized leader in financial services, including
property/casualty and life insurance, reinsurance, and asset management.
Shares of the funds are not insured or guaranteed by the U.S. Government.
Scudder California Tax Free Money Fund 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.
This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
SCUDDER
INVESTMENTS(SM)
[LOGO]
PO Box 2291
Boston, MA 02107-2291
1-800-SCUDDER
www.scudder.com
A member of the [LOGO] Zurich Services Group