This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
Scudder Global Fund
Semiannual Report
December 31, 1994
* For investors seeking long-term growth of capital from a
professionally managed portfolio consisting primarily of U.S. and
foreign common stocks.
* A pure no-load(tm) fund with no commissions to buy, sell, or exchange
shares.
CONTENTS
2 Highlights
3 Letter from the Fund's Chairman
4 Performance Update
5 Portfolio Summary
6 Portfolio Management Discussion
11 Investment Portfolio
21 Financial Statements
24 Financial Highlights
25 Notes to Financial Statements
30 Report of Independent Accountants
31 Tax Information
33 Officers and Directors
34 Investment Products and Services
35 How to Contact Scudder
HIGHLIGHTS
* Scudder Global Fund provided a -0.72% total return for the six months
ended December 31, 1994, against a backdrop of rising interest rates
and continued volatility in global financial markets.
* The unmanaged Morgan Stanley Capital International (MSCI) World Index
outperformed the Fund with a 1.4% total return during the period, due
largely to its relatively heavy weighting in Japanese stocks. Over
longer periods, however, the Fund has outperformed the Index by a
considerable margin, as shown in the chart below.
(BAR CHART TITLE) Average Annual Total Returns for
Periods Ended December 31, 1994
(CHART DATA)
<TABLE>
<C> <C> <C>
Scudder Global Fund 9.50 6.85
MSCI World Index 7.55 3.67
</TABLE>
* During the period, we maintained our exposure to economically
sensitive, capital goods oriented companies, as well as those
benefiting from a worldwide increase in demand for raw materials and
energy.
LETTER FROM THE FUND'S CHAIRMAN
Dear Shareholders,
The world's financial markets were shaken repeatedly in 1994 by a
variety of events. Rising interest rates, losses for investors in highly
leveraged derivatives, and unsettling global developments -- including
U.S./Chinese trade tensions and the Mexican currency crisis -- combined to
create a challenging environment for global stock and bond investors.
Masking the market volatility, however, many broad indexes ended the year
little changed from a year ago.
The year's financial storms left a chastened investor base in their
wake. Fixed-income markets around the world had a disastrous year, as the
Federal Reserve boosted short-term interest rates. Equity markets, with the
major exception of Japan early in the year, also suffered across the board.
The irony of this situation is that the underlying fundamentals of the
world economy improved during the year, as global companies continued to
adapt to a changing and increasingly competitive environment. To be sure,
there are problems that need to be resolved. Most of these relate to
government policies and actions more than to any deterioration in corporate
fundamentals. Nevertheless, as explained in the portfolio management
discussion that follows, the long-term fundamentals remain positive.
In the coming year, we expect a combination of factors, including
central bank tightening efforts, to keep the world economy and inflation on
a moderate course. Meanwhile, corporate profits continue to grow and
business investment is at an all-time high, which should translate into
expanded economic capacity down the road. Against this backdrop, our
research analysts around the globe are finding it less difficult these days
to locate good values in many equity markets. Although there will be
additional episodes of difficult adjustment as 1995 unfolds, it is on these
values that we think investors should be focused.
If you have questions about your Fund or your investments, please
contact a Scudder Investor Relations representative at 1-800-225-2470. Page
35 provides more information on how to contact Scudder. Thank you for
choosing Scudder Global Fund to help meet your investment needs.
Sincerely,
/s/Edmond D. Villani
Edmond D. Villani
Chairman
<PAGE>
Scudder Global Fund
Performance Update as of December 31, 1994
- -----------------------------------------------------------------
Growth of a $10,000 Investment
- -----------------------------------------------------------------
Scudder Global Fund
- ----------------------------------------
Total Return
Period Growth -------------
Ended of Average
12/31/94 $10,000 Cumulative Annual
- --------- ------- ---------- -------
1 Year $ 9,580 -4.20% -4.20%
5 Year $14,388 43.88% 7.55%
Life of
Fund* $25,148 151.48% 11.54%
MSCI World Index
- --------------------------------------
Total Return
Period Growth -------------
Ended of Average
12/31/94 $10,000 Cumulative Annual
- --------- ------- ---------- -------
1 Year $10,508 5.08% 5.08%
5 Year $11,974 19.74% 3.67%
Life of
Fund* $21,788 117.88% 9.69%
*The Fund commenced operations on July 23, 1986.
Index comparisons begin July 31, 1986.
A chart in the form of a line graph appears here,
illustrating the Growth of a $10,000 Investment.
The data points from the graph are as follows:
Yearly periods ended December 31
Scudder Global Fund
Year Amount
- ----------------------
7/31/86 10000
86 10358
87 10672
88 12720
89 17479
90 16360
91 19152
92 20023
93 26250
94 25148
MSCI World Index
Year Amount
- ----------------------
7/31/86 10000
86 10896
87 12657
88 15604
89 18196
90 15099
91 17860
92 16927
93 20736
94 21788
Morgan Stanley Capital International (MSCI) World Index is a
capitalization-weighted measure of global stock markets including
the U.S., Canada, Europe, Australia, and the Far East. Index returns
assume dividends reinvested net of withholding tax and, unlike
Fund returns, do not reflect any fees or expenses.
- -----------------------------------------------------------------
Returns and Per Share Information
- -------------------------------------------------------------------
A chart in the form of a bar graph appears here,
illustrating the Fund Total Return (%) and Index Total
Return (%) with the exact data points listed in the table
below.
Yearly periods ended December 31
- ----------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1987 1988 1989 1990 1991 1992 1993 1994
---------------------------------------------------------------
Net Asset Value... $12.56 $14.74 $19.48 $17.06 $18.96 $19.32 $24.80 $23.33
Income Distributions $ .06 $ .14 $ .20 $ .37 $ .31 $ .16 $ .24 $ .11
Capital Gains
Distributions..... $ .25 $ .08 $ .55 $ .83 $ .66 $ .34 $ .26 $ .34
Fund Total
Return (%)........ 3.03 19.19 37.41 -6.40 17.07 4.54 31.10 -4.20
Index Total
Return (%)........ 16.16 23.29 16.61 -17.02 18.28 -5.23 22.50 5.08
</TABLE>
All performance is historical, assumes reinvestment of all dividends and
capital gains, and is not indicative of future results.
Investment return and principal value will fluctuate, so an investor's
shares, when redeemed, may be worth more or less than when purchased.
Investment returns in some periods were higher due to maintenance of the
Fund's expenses. See Financial Highlights on page 24.
Portfolio Summary as of December 31, 1994
- ---------------------------------------------------------------------------
Geographical (Excludes Cash Equivalents & Debt)
- ---------------------------------------------------------------------------
Europe 35%
U.S. & Canada 28% Current export-based growth in Europe
Pacific Basin 18% should get a boost from continued
Japan 12% financial reform in Germany.
Latin America 3%
Other 4%
----
100%
====
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- --------------------------------------------------------------------------
Sectors (Excludes Cash Equivalents & Debt)
- --------------------------------------------------------------------------
Financial 20%
Manufacturing 14%
Metals & Minerals 10% Strong demand worldwide for raw
Consumer Staples 7% materials has led to increased
Utilities 7% investment in metals and mining
Energy 6% companies.
Technology 6%
Communications 6%
Construction 6%
Other 18%
----
100%
====
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- --------------------------------------------------------------------------
Ten Largest Equity Holdings
- --------------------------------------------------------------------------
1. Canon Inc.
Leading producer of visual image and information equipment
in Japan
2. Internationale-Nederlanden Groep CVA
Banking and insurance holding company in the Netherlands
3. RTZ Corp. PLC
British mining and finance company
4. Canadian Pacific Ltd.
Transportation and resource conglomerate
5. WMX Technologies Inc.
Solid and chemical waste management services in the U.S.
6. Brown, Boveri & Cie. AG (Bearer)
Manufacturer of electrical equipment in Switzerland
7. Hitachi Ltd.
General electronics manufacturer in Japan
8. Enron Corp.
Major U.S. natural gas pipeline system
9. United Healthcare Corp.
Owner/manager of health maintenance organizations and provider
of other specialty health services in the U.S.
10. Kyocera Corp.
Leading ceramic IC package manufacturer in Japan
The Fund's largest holdings mirror a capital-goods-oriented investment
strategy.
For more complete details about the Fund's Investment Portfolio,
see page 11.
A monthly Investment Portfolio Summary is available upon request.
<PAGE>
SCUDDER GLOBAL FUND
PORTFOLIO MANAGEMENT DISCUSSION
Dear Shareholders,
For the six months ended December 31, 1994, Scudder Global Fund
returned -0.72%, adjusted for $0.11 per share in income dividends and $0.34
in capital gain distributions. In the face of a challenging global
investment environment, the Fund's share price declined modestly to $23.33
at year end versus $23.93 on June 30, 1994. The unmanaged Morgan Stanley
Capital International (MSCI) World Index outperformed the Fund during the
six-month period with a 1.40% total return, due largely to its heavier
exposure to Japanese stocks relative to the Fund. For the year, the Fund
returned -4.20%, versus 5.08% for the Index. During longer-term periods,
the Fund has outperformed the Index by a substantial margin, returning
9.50% and 7.55% on average during the past three and five years, compared
with returns of 6.85% and 3.67% for the Index. For more information on the
Fund's performance, please turn to the Performance Update on page 4.
Global Financial Market Challenges Amidst Global Economic Expansion
1994 was not a good year for financial investments. Until last year,
the intense competition for world savings from the real economy had been
satisfied by the use of leverage and the availability of dollar credit.
When U.S. monetary generosity stopped in February with what turned out to
be the first of many interest-rate increases, financial markets went into
an uproar, despite the fact that the change had been well signaled. What
the markets had not appreciated was the extent to which long-term
investments, especially bonds, had been bought with short-term credit, not
only by the banking system but also by hedge funds.
Against this background, it is not surprising that the adjustment in
global bond markets was savage. In the equity markets, the unpleasantness
was also global -- in fact, the total return of the MSCI World Index would
have been negative for the year if not for its significant weighting in
Japan, which produced a U.S. dollar return of 20.7%.
Although market action was generally negative, the global economy was
having a good year. Expectations of growth and inflation were encouraging
as we went into the year and were revised favorably as time passed. The
pleasant surprise was that the German economy did far better than expected -
- - German exporters benefited from rising world demand for capital goods and
the strong yen, which put Japanese competitors at a disadvantage. The
emerging economies in general continued to do well. In Japan, we were
disappointed that our expectations for some financial ease, a lower yen,
and relief from the deflationary cycle were not met. Japan's stock market
remains an instrument of government policy and continues to confuse our
western logic. Japanese policy makers march to the beat of their own drum,
which is not a global rhythm.
Portfolio Strategy
Entering 1994, we thought that the portfolio was suitably prepared for
some reversals in the markets. But our confidence about our defensive
strategies proved to be misplaced as the year progressed. The government
bonds we purchased declined by more than the unmanaged S&P 500 Index during
the year, and we eliminated these positions during the semiannual period.
As a corollary, the Fund's performance was also hurt by its large exposure
to financial stocks throughout the year. Bank stocks declined due to fears
of bankruptcies among hedge funds, and insurance companies declined as they
took losses in their bond portfolios. Also, early in the year, the Fund was
significantly underweighted in Japan and the yen relative to the benchmark
index, which hampered its 1994 performance.
On the positive side, our offensive strategies did much to compensate.
Positions in non-ferrous mineral stocks had been built up on a timely
basis, and some of our oil investments also performed well. Although only
11% of the total portfolio, our Japanese investments had been increased in
the first half of the year prior to that market's rally and therefore
participated in the ensuing price appreciation. In the emerging markets,
our principal investment in Korea was very successful.
As we have stated before, we are not "country switchers." Our
investment ideas generally are not based within specific national borders.
Instead, we invest in themes that rely on an appreciation of the global
economy and markets. The themes that are emphasized in the portfolio are as
follows:
Capital Investment Led Growth
If the world is to grow, we believe it will be through the enlargement
of world economic markets and the productivity of new investment, rather
than the past trends of consumer-led, credit-financed demand. Accordingly,
we have purchased stocks we believe will benefit from increased spending on
capital goods. Recent investments include Mannesmann, a German producer of
steel tubing and machinery; and FLS, a Danish manufacturer and shipper of
cement plant equipment.
Synchronized Growth
We are making investments based on the global nature of the current
economic expansion. In 1995, we expect that all parts of the world will be
growing, albeit at different rates. The slackness in Japan, for example,
will be offset by the rapidity of growth in emerging economies. Economic
growth on this scale has greatly increased demand for natural resources and
energy-related materials. The Fund's holdings in these two areas accounted
for 16% of the portfolio on December 31, up from 14% in June.
The Yen End Game
We are also basing investments on our belief that the yen will weaken -
- - although we are not certain when or with what speed. Experience has
taught Japanese investors to fear currency losses. Japan therefore has kept
its export trade surplus at home, where it has been earning ever-declining
returns. This cannot continue indefinitely. The portfolio's limited
investments in Japan have been structured accordingly.
Reinsurance
Currently, we also favor reinsurance companies. Reinsurance is a
global commodity that is in short supply. The companies that can provide
the needed capacity should have pricing leverage and above-average
profitability. Recent additions to the portfolio include General Re Corp.
and PartnerRe Holdings.
Life Insurance
Our positive outlook for insurance companies reflects the fact that an
aging population in the West must save for retirement. At the same time,
there is a loss of faith in governments to make good on their future
obligations, such as social security in the United States. Portfolio
holdings include AEGON Insurance Group in the Netherlands and St. James
Place Capital in the United Kingdom.
Emerging Markets
If the citizens of the developed world are saving, this is where we
believe the savings will be invested. The Fund's principal emerging-market
position during the period was in South Korea, where we had invested 5.20%
of the portfolio.
Thoroughly Modern Companies
We also have sought to invest in thoroughly modern companies
benefiting from a high degree of specialization and such cost-saving
methods as outsourcing. Examples include Enron, a U.S.-based oil and gas
producer; and Reuters Holdings, an international news agency in the United
Kingdom.
Financial Reform
In Italy, due to the inability of the political system to deliver, we
believe the government's debt load is unsustainable, and we are reducing
exposure there. Where Italy has failed, however, we think that Germany will
succeed. Huge wealth is hidden within the German ownership structure, and
financial reform could help release it. The privatization of Deutsche
Telekom in 1996 could be the catalyst for more widespread interest in the
German market. At year end, the Fund's holdings in Germany accounted for
5.90% of the portfolio.
Just Pure Value
Finally, we emphasize companies that hold unappreciated value. Recent
purchases have focused on companies with substantial assets, which merely
require more aggressive management to realize higher shareholder value --
Fosters Brewing Corp. in Australia and Volvo in Sweden, for example.
Outlook
It is conventional wisdom when describing the long-term outlook for
global economic growth to acknowledge the opportunities arising out of
technology and the freeing of citizens of formerly communist states. We are
no different. However, taking a three- to five-year view, we believe it is
the availability of savings to finance this growth that is a key to capital
markets.
Before the analysis can be set out, it is important to distinguish
between the need for liquidity in the short term and long-term capital with
which to finance long-term projects. Currently, the rising cost of short-
term funds is hurting the marginal players in the financial markets. But
economic activity continues to speed along even though liquidity is tight
and will remain so for a while. Real (inflation adjusted) long-term
interest rates are well above real growth rates around the world, which
implies that some debts may not be rolled over somewhere down the line. Our
immediate outlook for the investment markets is cautious. On the other
hand, the markets handled 1994's events -- including the bond market and
Mexican peso shocks -- and we doubt that there will be a major unraveling
of prices.
Separate from the issue of liquidity in the short term is the huge
global demand for savings for long-term investment purposes. The ways in
which this demand will be resolved are many-faceted. First, we believe the
world will use its existing savings more efficiently in the future. The
Japanese, for example, will probably renew their appetite for overseas
investments. Second, the indebted governments of the world will have to
rethink their profligacy, even though this will involve the potentially
disruptive challenge of modifying voters' expectations. Third, the world
will require a new source of savings, which we believe will come from the
world's baby boomers as their consumerism gives way to thoughts of
retirement.
The implications of these savings trends are extremely important to
the Fund's investment policy and portfolio composition. They imply among
other things that the U.S. trade deficit should shrink, the dollar should
strengthen, and that world growth should be investment led, productivity
driven, and non-inflationary. The Fund's portfolio is structured
accordingly, with U.S. Treasuries acting as reserves to take advantage of
opportunities as they arise, and equities skewed towards capital goods
rather than consumer stocks. Moreover, although the United States has a low
weight relative to the benchmark index, the portfolio is dollar sensitive.
Thank you for your continued interest in Scudder Global Fund.
Sincerely,
Your Portfolio Management Team
/s/William E. Holzer /s/Nicholas Bratt
William E. Holzer Nicholas Bratt
/s/Alice Ho
Alice Ho
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO as of December 31, 1994
- ----------------------------------------------------------------------------------------------------
<CAPTION>
% of Principal Market
Portfolio Amount ($) Value ($)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
0.0% REPURCHASE AGREEMENTS
----------------------------------------------------------------------------
268,000 Repurchase Agreement with State Street
Bank and Trust Company dated 12/30/94
at 5.5%, to be repurchased at $268,164
on 1/3/95, collateralized by a
$280,000 U.S. Treasury Note, 6%,
6/30/96 (Cost $268,000) . . . . . . . . . . . . 268,000
-----------
9.6% BONDS
----------------------------------------------------------------------------
107,000,000 U.S. Treasury Bond, 8%, 11/15/21
(Cost $107,585,156) . . . . . . . . . . . . . . 107,418,370
-----------
1.9% CONVERTIBLE BONDS
----------------------------------------------------------------------------
CANADA 0.5% 6,657,000 Teck Corp., 3.75%, 7/15/06 . . . . . . . . . . . 6,157,725
-----------
KOREA 0.5% 625,000 Cheil Food and Chemical Co., Ltd., 3%,
12/31/06 . . . . . . . . . . . . . . . . . . . . 818,750
2,700,000 Ssangyong Cement Industrial Co., Ltd., 3%,
12/31/05 . . . . . . . . . . . . . . . . . . . 3,618,000
650,000 Ssangyong Oil Refining Co., Ltd., 3.75%,
12/31/08 . . . . . . . . . . . . . . . . . . . 690,625
-----------
5,127,375
-----------
MALAYSIA 0.4% 5,475,000 Telekom Malaysia Bhd., 4%, 10/3/04 . . . . . . . 4,845,375
-----------
MEXICO 0.5% 8,200,000 Empresa ICA Sociedad Controladora S.A.,
5%, 3/15/04 . . . . . . . . . . . . . . . . . . 5,166,000
-----------
TOTAL CONVERTIBLE BONDS (Cost $23,346,934) . . . . 21,296,475
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER GLOBAL FUND
- ---------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1.6% PREFERRED STOCKS
----------------------------------------------------------------------------
GERMANY 20,250 SAP AG (Computer software) . . . . . . . . . . . 11,470,527
30,000 Spar Handels AG (Food and beverage wholesaler
and retailer) . . . . . . . . . . . . . . . . . 6,290,258
----------
TOTAL PREFERRED STOCKS (Cost $9,435,783) . . . . . 17,760,785
----------
86.9% COMMON STOCKS
----------------------------------------------------------------------------
ARGENTINA 0.4% 253,143 Electricidad Argentina SA (ADR)
(Electric utility) (c) . . . . . . . . . . . . . 4,430,003
----------
AUSTRALIA 4.9% 658,068 Australian Gas & Light Co. (Electric and
gas utility) . . . . . . . . . . . . . . . . . . 2,220,392
897,129 Broken Hill Property (Petroleum, minerals
and steel) . . . . . . . . . . . . . . . . . . 13,638,938
547,000 CRA Ltd. (Mining, manufacturing
and development) . . . . . . . . . . . . . . . 7,552,259
1,148,000 Central Pacific Minerals (Shale oil and
mineral development) . . . . . . . . . . . . . 854,835
6,964,000 Fosters Brewing Group, Ltd. (Leading brewery) . . 6,103,890
4,113,496 M.I.M. Holdings Ltd. (Nonferrous metals
and coal) . . . . . . . . . . . . . . . . . . . 6,859,921
623,250 Western Mining Corp. Ltd. (Mineral
exploration and production) . . . . . . . . . . 3,606,373
3,711,000 Woodside Petroleum Ltd. (Major oil and
gas producer) . . . . . . . . . . . . . . . . . 13,643,911
----------
54,480,519
----------
BERMUDA 2.0% 378,150 Mid Ocean Limited* (Property and casualty
insurance company) . . . . . . . . . . . . . . . 10,304,588
570,200 PartnerRe Holdings Ltd. (Property and
casualty insurance company) . . . . . . . . . . 11,831,650
----------
22,136,238
----------
BRAZIL 0.7% 18,861,230 Centrais Eletricas Brasileiras S/A (pfd.)
(Electric utility) . . . . . . . . . . . . . . . 6,547,016
10,591,625 Companhia Siderurgica Belgo-Mineira
(Steel wires and wire products) . . . . . . . . 1,630,496
----------
8,177,512
----------
CANADA 2.7% 416,389 Alcan Aluminum Ltd. (Manufacturer of
aluminum and finished products) . . . . . . . . 10,571,051
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
355,600 Cambior, Inc. (Medium-sized gold producer
bringing into production a major mine
in Guyana) . . . . . . . . . . . . . . . . . . . . 4,087,910
162,800 Cambior, Inc. Warrants* (expire 6/30/95) . . . . . . . 290,158
1,044,086 Canadian Pacific Ltd. (Transportation and
resource conglomerate) . . . . . . . . . . . . . . 15,550,054
----------
30,499,173
----------
CHINA 1.2% 526 A-S China Plumbing Products Ltd. "B"(c)(d) . . . . . 5,260,000
551,500 Huaneng Power International, Inc. Series N
(ADR) (Developer and operator of
large coal-fired power plants) . . . . . . . . . . 8,134,625
----------
13,394,625
----------
DENMARK 1.0% 138,500 FLS Industries "B" (Machinery for cement
and allied industries; manufacturer and
shipper of cement) . . . . . . . . . . . . . . . . . 11,174,635
----------
GERMANY 4.3% 38,200 Bayerische Vereinsbank AG (Universal bank) . . . . . 11,016,273
23,000 Hoechst AG (Chemical producer) . . . . . . . . . . . . 5,000,594
38,812 Mannesmann AG (Producer of steel tubing and
machinery, industrial plant constructor, and
cellular franchise communications) . . . . . . . . 10,566,771
2,446 Muenchener Rueckversicherungs AG
(Insurance company) . . . . . . . . . . . . . . . . 3,858,328
2,699 Muenchener Rueckversicherungs AG
(Registered) . . . . . . . . . . . . . . . . . . . 5,049,690
18,040 Siemens AG(Manufacturer of electrical and
electronic equipment) . . . . . . . . . . . . . . . 7,553,445
14,600 VEBA AG (Provider of electrical
energy services) . . . . . . . . . . . . . . . . . 5,086,399
----------
48,131,500
----------
HONG KONG 2.5% 1,750,000 Cheung Kong Holdings Ltd. (Real estate
company) . . . . . . . . . . . . . . . . . . . . . . 7,124,815
834,600 China Light & Power Co., Ltd. (Electric utility) . . . 3,570,520
1,150,000 Hong Kong Telecommunications, Ltd.
(Telecommunication services) . . . . . . . . . . . 2,184,944
497,000 Hutchison Whampoa, Ltd. (Container
terminal and real estate company) . . . . . . . . . 2,029,871
972,949 Jardine Matheson Holding Co., Ltd.
(Conglomerate: real estate, merchandising,
engineering) . . . . . . . . . . . . . . . . . . . 6,947,802
2,225,000 Mandarin Oriental (Luxury hotel chain) . . . . . . . . 2,602,576
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER GLOBAL FUND
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
390,258 New World Development Co., Ltd.
(Property investment and development,
construction and engineering, hotels
and restaurants, telecommunications) . . . . . . . . 1,044,112
608,000 Television Broadcasts, Ltd. (Television
broadcasting) . . . . . . . . . . . . . . . . . . . 2,459,648
-----------
27,964,288
-----------
HUNGARY 0.3% 3,619 First Hungary Fund Units (Investment
company) (c) . . . . . . . . . . . . . . . . . . . . 3,485,097
-----------
ITALY 2.0% 6,086,000 Istituto Nazionale delle Assicurazione
(Insurance company) . . . . . . . . . . . . . . . . 8,084,648
363,000 La Rinascente SpA di Risparmio (Department
store chain) . . . . . . . . . . . . . . . . . . . 1,024,835
1,979,000 Societa Finanziaria Telefonica Torino SpA
(Telephone utility and telecommunication
equipment manufacturer) . . . . . . . . . . . . . . 5,831,171
2,881,020 Telecom Italia SpA (Telecommunication services). . . . 7,494,466
-----------
22,435,120
-----------
JAPAN 11.2% 1,018,000 Canon Inc. (Leading producer of visual
image and information equipment) . . . . . . . . . . 17,243,856
1,490,000 Hitachi Ltd. (General electronics
manufacturer) . . . . . . . . . . . . . . . . . . . 14,770,068
271,000 Iino Kaiun Kaisha, Ltd. (Operator of tankers
and specialized carriers) . . . . . . . . . . . . . 1,887,791
230,000 Ito-Yokado Co., Ltd. (Leading supermarket
retailer) . . . . . . . . . . . . . . . . . . . . . 12,287,258
191,000 Kyocera Corp. (Leading IC ceramic
packaging manufacturer) . . . . . . . . . . . . . 14,147,436
775,000 Matsushita Electrical Industrial Co., Ltd.
(Manufacturer of consumer electronic products) . . . 12,739,297
794,000 NSK Ltd. (Leading manufacturer of bearings
and other machinery parts) . . . . . . . . . . . . 6,287,059
40,000 Nichiei Co., Ltd. (Finance company for small
and medium-sized firms) . . . . . . . . . . . . . . 2,565,901
35,000 Nintendo Co., Ltd. (Game equipment
manufacturer) . . . . . . . . . . . . . . . . . . . 1,890,849
987,000 Nisshin Steel Co., Ltd. (Blast furnace
steelmaker) . . . . . . . . . . . . . . . . . . . . 4,966,161
185,000 Secom Co., Ltd. (Electronic security
system operator) . . . . . . . . . . . . . . . . . 11,496,439
213,000 Sony Corp. (Consumer electronic
products manufacturer) . . . . . . . . . . . . . . 12,062,240
1,823,000 Toshiba Corp. (General electronics manufacturer) . . . 13,210,670
-----------
125,555,025
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
KOREA 4.7% 10,000 Baikyang (Underwear manufacturer) (c) . . . . . . . 1,662,270
89,754 Cheil Food and Chemical Co., Ltd.
(Leading sugar refiner and integrated
food processor) . . . . . . . . . . . . . . . . . 5,953,245
330,780 Daewoo Heavy Industries Ltd. (Leading
manufacturer of heavy industrial equipment) . . . 5,159,916
3,594 Daewoo Heavy Industries Ltd. (New) . . . . . . . . 56,519
100,000 Hanil Bank (Major commercial bank) . . . . . . . . 1,306,278
21,464 Hanil Bank (New) . . . . . . . . . . . . . . . . . 269,491
69,000 units Korea Asia Fund Units (Investment company) (b) . . 1,535,250
25,000 Korea Electric Power Co. (Electric utility) . . . 862,397
140 units Korea Equity Trust (Investment company) (b) . . . 1,627,500
78,207 Korea Express Co., Ltd. (General
freight transport company) . . . . . . . . . . . 3,769,012
20,338 Korea Express Co., Ltd. (New) . . . . . . . . . . 956,931
40,000 Korea Long Term Credit Bank (Major
commercial bank) . . . . . . . . . . . . . . . . 1,242,866
7,516 Korea Long Term Credit Bank (New) . . . . . . . . 227,815
80,000 Korea Zinc Co. (Zinc mining and manufacturing) . . 2,303,107
4,220 Lotte Confectionery Co. Ltd. (Major
producer of snacks) (c) . . . . . . . . . . . . 625,641
96,570 Oriental Brewery Co., Ltd.
(Leading brewery) . . . . . . . . . . . . . . . 2,437,214
25,000 Pang-Rim Spinning Co., Ltd. (Leading
manufacturer of cotton-polyester spun fabrics). . 1,807,229
12,489 Samsung Electromechanics Co., Ltd.
(Major electronics parts company) . . . . . . . 625,638
5,448 Samsung Electromechanics Co., Ltd. (New)(c) . . . 272,918
1,444 Samsung Electromechanics Co., Ltd. (New) . . . . . 70,506
61,547 Samsung Electronics Co., Ltd. (Major
electronics company) . . . . . . . . . . . . . 3,000,416
11,083 Samsung Electronics Co., Ltd. (GDR) . . . . . . . 680,219
162,133 Samsung Electronics Co., Ltd.
(GDS)(non-voting) . . . . . . . . . . . . . . . 7,295,985
1,145 Samsung Electronics Co., Ltd. (New)(c) . . . . . . 167,031
13,053 Samsung Electronics Co., Ltd.
(Sponsored GDR) . . . . . . . . . . . . . . . . 783,180
84,120 Samsung Heavy Industries Co., Ltd.
(Machinery manufacturer) . . . . . . . . . . . 3,499,221
10,437 Samsung Heavy Industries Co., Ltd. (New) . . . . . 423,569
43 units Seoul International Trust
(Investment company) (b) . . . . . . . . . . . 2,300,500
37,206 Ssangyong Cement Industrial Co., Ltd.
(Major cement producer) . . . . . . . . . . . . 1,425,011
----------
52,346,875
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER GLOBAL FUND
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
MALAYSIA 0.3% 467,000 Telekom Malaysia Bhd.*
(Telecommunication services) . . . . . . . . . . . 3,163,893
----------
MEXICO 0.7% 804,000 Grupo Carso, S.A. de CV "A" (Diversified
industrial group) . . . . . . . . . . . . . . . . 5,869,200
540,000 Grupo Financiero Banamex-Accival S.A. "C"
(Commercial bank) . . . . . . . . . . . . . . . . 1,587,600
23,650 Grupo Financiero Banamex-Accival S.A. "L"
(Commercial bank) . . . . . . . . . . . . . . . . 68,112
20,100 Grupo Financiero Serfin (ADR) (Bank) . . . . . . . . 150,750
----------
7,675,662
----------
NETHERLANDS 2.4% 170,569 AEGON Insurance Group NV
(Insurance company) . . . . . . . . . . . . . . . 10,910,503
351,786 Internationale-Nederlanden Groep CVA
(Banking and insurance holding company) . . . . . 16,623,179
----------
27,533,682
----------
NETHERLANDS
ANTILLES 0.4% 89,000 Schlumberger Ltd. (Oil field services
and electronics) . . . . . . . . . . . . . . . . . 4,483,375
----------
NEW ZEALAND 0.8% 2,600,000 Telecom Corp. of New Zealand
(Telecommunication services) . . . . . . . . . . . 8,488,246
----------
NORWAY 0.1% 200,000 Smedvig Tankships Ltd. (Owner and
operator of tankers) . . . . . . . . . . . . . . . 1,537,548
----------
PANAMA 0.5% 165,900 Banco Latinoamericano de
Exportaciones, SA (ADR) (Bank) . . . . . . . . . . 5,184,375
----------
SOUTH AFRICA 1.2% 468,500 Impala Platinum Holdings (ADR) (Leading
platinum producer) . . . . . . . . . . . . . . . . 11,496,756
75,000 Rustenburg Platinum Holdings, Ltd. (ADR)
(Leading platinum producer) . . . . . . . . . . . 2,062,500
----------
13,559,256
----------
SPAIN 0.3% 163,000 Compania Telefonica Nacional de Espana SA
(Telecommunication services) . . . . . . . . . . . 1,925,586
35,000 Compania Telefonica Nacional de Espana
SA (ADR) . . . . . . . . . . . . . . . . . . . . 1,229,375
----------
3,154,961
----------
SWEDEN 3.7% 502,000 Astra AB "A" (Free) (Pharmaceutical company) . . . . 12,965,176
78,800 Atlas Copco AB "A" (Manufacturer of air and
gas compressors) . . . . . . . . . . . . . . . . 1,006,986
751,300 S.K.F. AB "B" (Free) (Manufacturer of
roller bearings) . . . . . . . . . . . . . . . . 12,380,066
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
417,300 Skandia Foersaekrings AB "B" (Free)
(Financial conglomerate) . . . . . . . . . . . . 7,213,150
425,400 Volvo AB "B" (Free) (Automobile manufacturer) . . . 8,011,226
----------
41,576,604
----------
SWITZERLAND 6.9% 17,915 Brown, Boveri & Cie. AG (Bearer)
(Manufacturer of electrical equipment) . . . . . . 15,428,140
4,000 Ciba-Geigy AG (Bearer) (Pharmaceutical
company) . . . . . . . . . . . . . . . . . . . . 2,393,286
13,735 Ciba-Geigy AG (Registered) . . . . . . . . . . . . . 8,196,955
9,621 Nestle SA (Registered) (Food manufacturer) . . . . . 9,167,681
17,015 Sandoz Ltd. AG (Registered)
(Pharmaceutical company) . . . . . . . . . . . . 8,867,254
2,675 Schindler Holdings AG (PC) (Leading
elevator and escalator manufacturer) . . . . . . . 3,127,433
16,155 Schweizerische Rueckversicherungs-
Gesellschaft (Registered) (Life, accident
and health insurance company) . . . . . . . . . . 9,739,952
14,218 Swiss Bank Corp. (PC) (Bearer)
(Switzerland's second largest universal bank) . . 3,932,964
7,895 Union Bank of Switzerland (Bearer)
Switzerland's largest universal bank). . . . . . . 6,551,712
1,180 Zurich Insurance Group (Bearer)
(Insurance company) . . . . . . . . . . . . . . . 1,122,598
8,970 Zurich Insurance Group (Registered) . . . . . . . . 8,567,918
----------
77,095,893
----------
TAIWAN 0.6% 144,000 China Steel Corp. (ADR)* (Integrated steel mills) . . 3,276,000
21,271 President Enterprises Corp. GDS (Food and
beverage conglomerate) . . . . . . . . . . . . . 430,742
161,663 President Enterprises Corp. (GDR)* . . . . . . . . . 3,273,672
----------
6,980,414
----------
THAILAND 0.7% 132,800 Siam Cement Co., Ltd. (Construction
materials and industrial conglomerate) . . . . . . 7,998,847
28,350 Thai President Foods (Food processor) (c) . . . . . 295,194
----------
8,294,041
----------
UNITED KINGDOM 8.7% 2,762,400 British Gas PLC (Integrated gas utility) . . . . . . 13,527,197
1,847,000 Enterprise Oil PLC (Oil and gas exploration
and production) . . . . . . . . . . . . . . . . . 11,321,573
677,600 Great Universal Stores PLC (Catalog
home shopping, retailing, finance and
property investment) . . . . . . . . . . . . . . 5,766,970
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER GLOBAL FUND
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
6,067,285 Lasmo PLC (Oil exploration and
production) . . . . . . . . . . . . . . . . . . . 14,048,550
140,900 London & Overseas Freighters (ADR)
(Operator of a fleet of oil tankers) . . . . . . . 2,007,825
1,356,000 PowerGen PLC (Electric utility) . . . . . . . . . 11,371,032
1,118,570 RTZ Corp. PLC (Mining and finance company) . . . . . 14,490,018
35,000 RTZ Corp. PLC (ADR) . . . . . . . . . . . . . . . . 1,841,875
1,680,000 Reuters Holdings PLC (International
news agency) . . . . . . . . . . . . . . . . . . . 12,300,721
3,069,900 St. James's Place Capital PLC (Money
management and insurance) . . . . . . . . . . . . 5,187,084
1,063,000 Waste Management International PLC
(Waste collection and disposal services) . . . . 5,953,765
----------
97,816,610
----------
UNITED STATES 21.6% 84,800 AMBAC Inc. (Insurer of municipal bonds) . . . . . . 3,158,800
121,000 AMR Corp.*(Leading airline) . . . . . . . . . . . . 6,443,250
227,500 AirTouch Communications, Inc.*
(Wireless telecommunication services). . . . . . . 6,625,938
236,100 American President Companies, Ltd.
(Major containership operator) . . . . . . . . . 5,961,525
284,200 Boeing Co. (Manufacturer of jet airplanes
and missiles) . . . . . . . . . . . . . . . . . . 13,286,350
117,000 CMS Energy Corp. (Holding company,
electric and gas utility in Michigan) . . . . . . 2,676,375
68,200 Chemical Banking Corp. (Commercial bank) . . . . . . 2,446,675
261,468 Comerica Inc. (Bank holding company) . . . . . . . . 6,373,283
256,000 Comsat Corp. (Provider of communication and
information services worldwide by fixed and
mobile technology) . . . . . . . . . . . . . . . 4,768,000
141,600 Consolidated Freightways Inc.* (Trucking,
air freight) . . . . . . . . . . . . . . . . . . 3,168,300
479,000 Destec Energy Inc. (Non-utility producer of
cogeneration and coal gasification power) . . . . 5,089,375
228,300 EXEL, Ltd. (Provider of liability insurance) . . . . 9,017,850
481,100 Enron Corp. (Major natural gas
pipeline system) . . . . . . . . . . . . . . . . 14,673,550
136,700 Fluor Corp. (Engineering and
construction company) . . . . . . . . . . . . . . 5,895,188
144,600 General Mills, Inc. (Packaged foods, restaurants). . 8,242,200
99,635 General Re Corp. (Property and casualty
reinsurance) . . . . . . . . . . . . . . . . . . 12,329,831
150,000 Giant Group Ltd.* (Cement manufacturer). . . . . . . 1,012,500
92,100 Harnischfeger Industries, Inc.
(Manufacturer of specialized machinery,
equipment and systems) . . . . . . . . . . . . . 2,590,313
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
498,000 Homestake Mining Co. (Major international
gold producer) . . . . . . . . . . . . . . . . 8,528,250
73,049 J.P. Morgan & Co., Inc. (Commercial banking
and financial services) . . . . . . . . . . . . 4,090,744
739,100 LaFarge Corp. (Leading cement producer) . . . . . 13,119,025
202,650 MBIA Inc. (Insurer of municipal bonds) . . . . . 11,373,731
334,900 MCI Communications Corp. (Long-distance
telecommunications network) . . . . . . . . . . 6,153,788
109,000 Minnesota Mining & Manufacturing Co.
(Manufacturer of adhesive tapes and
abrasives, decorative products,
specialty chemicals) . . . . . . . . . . . . . 5,817,875
227,500 Pacific Telesis Group (Telephone operating
company in California and Nevada) . . . . . . . 6,483,750
107,500 Policy Management Systems Corp. (Insurance
company software and services) . . . . . . . . 4,515,000
259,400 Public Service Co. of New Mexico* (Large
electric utility serving the southwest) . . . . 3,372,200
194,700 Southdown Inc. (Cement and concrete producer) . . 2,823,150
54,000 Thermo Electron Corp.* (Engineered
industrial products and environmental
instruments) . . . . . . . . . . . . . . . . . 2,423,250
250,000 Unicom Corp. (Electric utility in northern
Illinois). . . . . . . . . . . . . . . . . . . . 6,000,000
319,700 United Healthcare Corp. (Owner/manager
of health maintenance organizations and
provider of other speciality health services) 14,426,463
202,700 United Technologies Corp. (Aerospace, climate
control systems and elevators) . . . . . . . . 12,744,763
591,200 WMX Technologies Inc. (Solid and
chemical waste management services) . . . . . . 15,519,000
105,000 Xerox Corp. (Leading manufacturer
of copiers and duplicators) . . . . . . . . . . 10,395,000
-----------
241,545,292
-----------
VENEZUELA 0.1% 195,000 Venezolana de Prerreducidos Caroni C.A.
(GDS) (Manufacturer of steel pellets). . . . . . 1,218,750
-----------
TOTAL COMMON STOCKS (Cost $851,557,807). . . . . . 973,519,212
-----------
- ----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT PORTFOLIO -- 100.0%
(Cost $992,193,680) (a) . . . . . . . . . . . 1,120,262,842
=============
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
SCUDDER GLOBAL FUND
* Nonincome producing security.
(a) The cost for federal income tax purposes was $994,354,645. At December
31, 1994, net unrealized appreciation for all securities based on tax
cost was $125,908,197. This consisted of aggregate gross unrealized
appreciation for all securities in which there was an excess of market
value over tax cost of $164,534,477 and aggregate gross unrealized
depreciation for all securities in which there was an excess of tax cost
over market value of $38,626,280.
<TABLE>
<S> <C>
(b) 500 shares = 1 IDR unit (International Depository Receipt) for Korea Asia Fund
1,000 shares = 1 IDR unit for Korea Equity Trust
1,000 shares = 1 unit for Seoul International Trust
</TABLE>
(c) Securities valued in good faith by the valuation committee of the Board
of Directors. The cost of these securities at December 31, 1994
aggregated $15,153,184. See Note A of the Notes to Financial Statements.
(d) Market value and cost reflect full payment. A remaining payment of
approximately $1,754,000 is payable by August 12, 1995.
See page 5 for sector breakdown.
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 $992,193,680)
(Note A) . . . . . . . . . . . . . . . . . . . . . . . . $1,120,262,842
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . 718,522
Receivable on forward foreign currency
exchange contracts to sell (Notes A and D) . . . . . . . 80,104,467
Forward foreign currency exchange contracts to buy,
at market (contract cost $4,682,466) (Notes A and D) . . 4,673,686
Other receivables:
Investments sold . . . . . . . . . . . . . . . . . . . . 12,914,821
Dividends and interest . . . . . . . . . . . . . . . . . 3,354,778
Fund shares sold . . . . . . . . . . . . . . . . . . . . 685,274
Other assets . . . . . . . . . . . . . . . . . . . . . . . 6,739
--------------
Total assets . . . . . . . . . . . . . . . . . . . . 1,222,721,129
LIABILITIES
Payables:
Investments purchased . . . . . . . . . . . . . . . . . $15,556,261
Fund shares redeemed . . . . . . . . . . . . . . . . . . 2,933,435
Accrued management fee (Note C) . . . . . . . . . . . . 901,541
Forward foreign currency exchange contracts to
buy (Notes A and D) . . . . . . . . . . . . . . . . . 4,682,466
Forward foreign exchange contracts to sell, at
market (contract cost $80,104,467)
Notes A and D) . . . . . . . . . . . . . . . . . . . 82,217,816
Other accrued expenses (Note C) . . . . . . . . . . . . 697,565
----------
Total liabilities . . . . . . . . . . . . . . . . . . 106,989,084
-------------
Net assets, at market value . . . . . . . . . . . . . . . . 1,115,732,045
=============
NET ASSETS
Net assets consist of:
Undistributed net investment income . . . . . . . . . . $ 4,379,912
Unrealized appreciation (depreciation) on:
Investments . . . . . . . . . . . . . . . . . . . . . 128,069,162
Foreign currency related transactions . . . . . . . . (2,009,678)
Accumulated net realized loss . . . . . . . . . . . . . (13,238,524)
Capital stock . . . . . . . . . . . . . . . . . . . . . 478,340
Additional paid-in capital . . . . . . . . . . . . . . . 998,052,833
-------------
Net assets, at market value . . . . . . . . . . . . . . . . $1,115,732,045
==============
NET ASSET VALUE, offering and redemption price per
share ($1,115,732,045 -:-47,833,987 shares of
capital stock outstanding, $.01 par value,
100,000,000 shares authorized) . . . . . . . . . . . . . $23.33
=====
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER GLOBAL FUND
- -------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1994
- -------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends (net of withholding taxes of $608,338) . . . . $ 7,246,769
Interest . . . . . . . . . . . . . . . . . . . . . . . . 4,185,515
-------------
11,432,284
Expenses:
Management fee (Note C) . . . . . . . . . . . . . . . . . $ 5,602,419
Services to shareholders (Note C) . . . . . . . . . . . . 1,274,405
Directors' fees (Note C) . . . . . . . . . . . . . . . . 18,931
Custodian fees . . . . . . . . . . . . . . . . . . . . . 488,659
Reports to shareholders . . . . . . . . . . . . . . . . . 245,303
Auditing . . . . . . . . . . . . . . . . . . . . . . . . 43,700
Legal . . . . . . . . . . . . . . . . . . . . . . . . . . 186,079
Federal and state registration . . . . . . . . . . . . . 53,070
Other . . . . . . . . . . . . . . . . . . . . . . . . . . 28,707 7,941,273
------------ -------------
Net investment income . . . . . . . . . . . . . . . . . . 3,491,011
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT TRANSACTIONS
Net realized loss from:
Investments . . . . . . . . . . . . . . . . . . . . . (12,666,190)
Foreign currency related transactions . . . . . . . . (163,989) (12,830,179)
------------
Net unrealized appreciation (depreciation) during
the period on:
Investments . . . . . . . . . . . . . . . . . . . . . (1,155,644)
Foreign currency related transactions . . . . . . . . 561,328 (594,316)
------------ -------------
Net loss on investment transactions . . . . . . . . . . . (13,424,495)
-------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS . . $ (9,933,484)
=============
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
- ----------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
DECEMBER 31, JUNE 30,
INCREASE (DECREASE) IN NET ASSETS 1994 1994
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income . . . . . . . . . . . . . . . $ 3,491,011 $ 8,994,599
Net realized gain (loss) from investment
transactions . . . . . . . . . . . . . . . . . . (12,830,179) 15,689,031
Net unrealized appreciation (depreciation) on
investment transactions during the period . . . (594,316) 55,680,309
-------------- --------------
Net increase (decrease) in net assets
resulting from operations . . . . . . . . . . . (9,933,484) 80,363,939
-------------- --------------
Distributions to shareholders:
From net investment income ($.11 and $.24 per
share, respectively) . . . . . . . . . . . . . . (5,208,927) (8,281,802)
-------------- -------------
From net realized gains from investment
transactions ($.34 and $.26 per
share, respectively) . . . . . . . . . . . . . . (16,100,320) (8,616,585)
-------------- -------------
Fund share transactions:
Proceeds from shares sold . . . . . . . . . . . . . 167,030,197 690,156,086
Net asset value of shares issued to
shareholders in reinvestment of distributions . 20,010,200 15,676,758
Cost of shares redeemed . . . . . . . . . . . . . . (135,599,622) (250,398,396)
-------------- -------------
Net increase in net assets from Fund share
transactions . . . . . . . . . . . . . . . . . . 51,440,775 455,434,448
-------------- -------------
INCREASE IN NET ASSETS . . . . . . . . . . . . . . 20,198,044 518,900,000
Net assets at beginning of period . . . . . . . . . 1,095,534,001 576,634,001
-------------- -------------
NET ASSETS AT END OF PERIOD
(including undistributed net
investment income of $4,379,912 and
$6,097,828, respectively) . . . . . . . . . . . 1,115,732,045 1,095,534,001
============== =============
OTHER INFORMATION
INCREASE (DECREASE) IN FUND SHARES
Shares outstanding at beginning of period . . . . . 45,787,687 26,658,760
-------------- -------------
Shares sold . . . . . . . . . . . . . . . . . . . . 6,861,547 28,794,350
Shares issued to shareholders in
reinvestment of distributions . . . . . . . . . 810,995 670,735
Shares redeemed . . . . . . . . . . . . . . . . . . (5,626,242) (10,336,158)
-------------- -------------
Net increase in Fund shares . . . . . . . . . . . . 2,046,300 19,128,927
-------------- -------------
Shares outstanding at end of period . . . . . . . . 47,833,987 45,787,687
============== =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
SCUDDER GLOBAL 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.
For the Period
<CAPTION> July 23, 1986
SIX MONTHS (commencement)
ENDED YEARS ENDED JUNE 30, of operations
DECEMBER 31, -------------------------------------------------------- to June 30,
1994 1994(d) 1993 1992 1991 1990 1989 1988 1987
----------- -------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period . . . . . . . $23.93 $21.63 $19.56 $18.06 $20.36 $17.64 $14.47 $15.42 $12.00
------ ------ ------ ------ ------ ------ ------ ------ ------
Income from investment
operations:
Net investment income . . . . . . .07 .23 .15 .19 .40 .19 .19 .18 .05
Net realized and unrealized
gain (loss) on investment
transactions . . . . . . . . . . (.22) 2.57 2.42 2.28 (1.50) 3.28 3.20 (.82) 3.37
------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations . (.15) 2.80 2.57 2.47 (1.10) 3.47 3.39 (.64) 3.42
------ ------ ------ ------ ------ ------ ------ ------ ------
Less distributions:
From net investment income . . . . (.11) (.24) (.16) (.31) (.37) (.20) (.14) (.06) --
From net realized gains on
investment transactions. . . . . (.34) (.26) (.34) (.66) (.83) (.55) (.08) (.25) --
------ ------ ------ ------ ------ ------ ------ ------ ------
Total distributions . . . . . . . . (.45) (.50) (.50) (.97) (1.20) (.75) (.22) (.31) --
------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period . . $23.33 $23.93 $21.63 $19.56 $18.06 20.36 $17.64 $14.47 $15.42
======= ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (%) . . . . . . . . . (.72)** 12.99 13.45 14.09 (5.20) 20.00 23.90 (4.45) 28.50**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
($ millions) . . . . . . . . . . 1,116 1,096 577 371 268 257 91 81 102
Ratio of operating expenses,
to average daily net
assets (%) . . . . . . . . . . . 1.37* 1.45 1.48 1.59 1.70 1.81 1.98 1.71(b) 1.84*(a)
Ratio of net investment income to
average daily net assets (%) . . .60* .97 .90 1.09 2.21 1.77 1.22 1.23 .63*
Portfolio turnover rate (%) . . . . 30.3* 59.7 64.9 44.6 85.0(c) 38.3 30.7 53.8 32.2*
<FN>
(a) The Adviser did not impose all of its management fee during the period July 23, 1986 (commencement of operations) to
December 31, 1986, amounting to $.01 per share.
(b) The Adviser absorbed a portion of the Fund's expenses exclusive of management fees, amounting to $.03 per share.
(c) The portfolio turnover rate on equity securities and debt securities was 62.7% and 174.4%, respectively, based on average
monthly equity holdings and average monthly debt holdings.
(d) Per share amounts have been calculated using weighted average shares outstanding.
* Annualized
** Not annualized
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
A. SIGNIFICANT ACCOUNTING POLICIES
- -------------------------------------------------------------------------------
Scudder Global Fund (the "Fund") is a diversified series of Scudder Global
Fund, Inc., a Maryland corporation (the "Corporation") 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 securities which are traded on U.S. or foreign
stock exchanges are valued at the most recent sale price reported on the
exchange on which the security is traded most extensively. If no sale occurred,
the security is then valued at the calculated mean between the most recent bid
and asked quotations. If there are no such bid and asked quotations, the most
recent bid quotation is used. Securities quoted on the National Association of
Securities Dealers Automatic Quotation ("NASDAQ") System, for which there have
been sales, are valued at the most recent sale price reported on such system.
If there are no such sales, the value is the high or "inside" bid quotation.
Securities which are not quoted on the NASDAQ System but are traded in another
over-the-counter market are valued at the most recent sale price on such
market. If no sale occurred, the security is then valued at the calculated mean
between the most recent bid and asked quotations. If there are no such bid and
asked quotations, the most recent bid quotation shall be used.
Portfolio debt securities with remaining maturities greater than sixty days are
valued by pricing agents approved by the officers of the Fund, which quotations
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.
Short-term investments having a maturity of sixty days or less are valued at
amortized cost.
All other securities are valued at their fair value as determined in good faith
by the Valuation Committee of the Board of Directors. Securities valued in good
faith by the Valuation Committee of the Board of Directors at fair value
amounted to $16,198,154 (1.5% of net assets) and have been noted in the
investment portfolio as of December 31 , 1994.
<PAGE>
SCUDDER GLOBAL FUND
- ---------------------------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with banks
and broker/dealers whereby the Fund, through its custodian, receives delivery
of the underlying securities, the amount of which at the time of purchase and
each subsequent business day is required to be maintained at such a level that
the market value, depending on the maturity of the repurchase agreement, is
equal to at least 100.5% of the resale price.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Fund are maintained
in U.S. dollars. Foreign currency transactions are translated into U.S. dollars
on the following basis:
(i) market value of investment securities, other assets and
liabilities at the daily rates of exchange, and
(ii) purchases and sales of investment securities, dividend and
interest income and certain expenses at the rates of exchange prevailing on the
respective dates of such transactions.
The Fund does not isolate that portion of gains and losses on investments which
is due to changes in foreign exchange rates from that which is due to changes
in market prices of the investments. Such fluctuations are included with the
net realized and unrealized gains and losses from investments.
Net realized and unrealized gain (loss) from foreign currency related
transactions includes gains and losses between trade and settlement dates on
securities transactions, gains and losses arising from the sales of foreign
currency, and gains and losses between the ex and payment dates on dividends,
interest, and foreign withholding taxes.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS. In connection with portfolio
purchases and sales of securities denominated in a foreign currency, the Fund
may enter into forward foreign currency exchange contracts ("contracts").
Additionally, the Fund may enter into contracts to hedge certain other foreign
currency denominated assets. Contracts are recorded at market value. Certain
risks may arise upon entering into these contracts from the potential inability
of counterparties to meet the terms of their contracts. Realized and
unrealized gains and losses arising from such transactions are included in net
realized and unrealized gain from foreign currency related transactions.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 income to its shareholders.
Accordingly, the Fund paid no federal income taxes and no federal income tax
provision was required.
DISTRIBUTION OF INCOME AND GAINS. Distributions of net investment income are
made annually. 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 annually. 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 primarily relate to investments in forward contracts, passive
foreign investment companies, and certain securities sold at a loss. 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.
The Fund uses the identified cost method for determining realized gain or loss
on investments for both financial and federal income tax reporting purposes.
OTHER. Investment security transactions are accounted for on a trade-date
basis. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded on an accrual basis. Original
issue discounts are accreted for both tax and financial reporting purposes.
B. PURCHASES AND SALES OF SECURITIES
- -------------------------------------------------------------------------------
Purchases and sales of investment securities (excluding short-term investments)
for the six months ended December 31, 1994 aggregated $301,992,651 and
$159,908,007, respectively.
<PAGE>
SCUDDER GLOBAL FUND
- ----------------------------------------------------------------------------
C. RELATED PARTIES
- ----------------------------------------------------------------------------
Under the Investment 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 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 Management Agreement.
The management fee payable under the Management Agreement is equal to an annual
rate of 1% of the first $500,000,000 of average daily net assets and 0.95% of
such assets in excess of $500,000,000 computed and accrued daily and payable
monthly. The Management Agreement also 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. For the six months ended December 31, 1994, the fee pursuant to
the Management Agreement amounted to $5,602,419, which was equivalent to an
annualized effective rate of .96% of the Fund's average daily net assets.
Scudder Service Corporation ("SSC"), a wholly-owned subsidiary of the Adviser,
is transfer, dividend-paying and shareholder service agent for the Fund.
Included in services to shareholders is $1,086,170 charged to the Fund by SSC
during the six months ended December 31, 1994, of which $185,926 is unpaid at
December 31, 1994.
The Fund pays each Director not affiliated with the Adviser $4,000 annually,
plus specified amounts for attended board and committee meetings. For the six
months ended December 31, 1994, Directors' fees aggregated $18,931.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
<TABLE>
D. COMMITMENTS
- --------------------------------------------------------------------------------
As of December 31, 1994, the Fund had entered into the following forward
foreign currency exchange contracts resulting in net unrealized depreciation of
($2,122,129).
<CAPTION>
NET UNREALIZED
APPRECIATION
(DEPRECIATION)
CONTRACTS TO DELIVER IN EXCHANGE FOR SETTLEMENT DATE (U.S.$)
- ------------------------------ -------------------------- ----------------- ---------------
<S> <C> <C> <C> <C> <C>
Japanese Yen 3,933,449,800 U.S. Dollars 39,893,000 4/25/96 (2,218,806)
Japanese Yen 1,219,389,480 U.S. Dollars 13,194,000 7/1/96 20,361
Japanese Yen 1,456,602,912 U.S. Dollars 15,846,420 4/25/96 251,921
Japanese Yen 98,645,250 U.S. Dollars 1,087,000 10/25/96 4,235
Italian Lira 16,594,022,964 U.S. Dollars 10,084,047 1/31/95 (171,060)
U.S. Dollars 256,946 Japanese Yen 25,774,208 1/4/95 1,569
U.S. Dollars 185,777 Japanese Yen 18,635,252 1/3/95 1,135
U.S. Dollars 2,486,931 British Pounds 1,581,615 1/12/95 (10,122)
U.S. Dollars 455,021 Japanese Yen 45,388,427 1/5/95 225
U.S. Dollars 113,454 British Pounds 72,727 1/13/95 436
U.S. Dollars 872,587 Japanese Yen 86,822,394 1/5/95 (1,758)
U.S. Dollars 108,167 British Pounds 69,028 1/16/95 (69)
U.S. Dollars 203,583 Japanese Yen 20,277,863 1/6/95 (196)
-----------
(2,122,129)
===========
</TABLE>
E. CONTINGENCIES
- --------------------------------------------------------------------------------
In November 1993 a shareholder of the Fund filed a class action lawsuit against
the Fund and other mutual funds that held shares of Policy Management Systems
Corporation. The lawsuit, as amended in May 1994, alleges that the Fund, the
Fund's investment adviser, the Fund's underwriter, and other mutual funds
violated their fiduciary duty to shareholders by purchasing or continuing to
hold shares of Policy Management after it was reported that Policy Management
may have misstated earnings over the past three years. The lawsuit also alleges
that the Fund and other defendants violated their fiduciary duty by failing to
disclose to shareholders that they would purchase or continue to hold shares of
companies such as Policy Management. The Fund's management believes the lawsuit
is without merit and intends to defend the suit vigorously. Management is of
the opinion that the outcome of the suit will not have a material adverse
effect on the Fund's net asset value.
<PAGE>
SCUDDER GLOBAL FUND
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------
TO THE DIRECTORS OF SCUDDER GLOBAL FUND, INC. AND TO THE SHAREHOLDERS OF
SCUDDER GLOBAL FUND:
We have audited the accompanying statement of assets and liabilities of Scudder
Global Fund including the investment portfolio, as of December 31, 1994, and
the related statement of operations for the six-month period then ended, the
statements of changes in net assets for the six-month period then ended, and
for the year ended June 30, 1994, and the financial highlights for the
six-month period ended December 31, 1994, for each of the seven years in the
period ended June 30, 1994 and for the period July 23, 1986 (commencement of
operations) to June 30, 1987. 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 Global Fund as of December 31, 1994, the results of its operations for
the six-month period then ended, the changes in its net assets for the
six-month period then ended and for the year ended June 30, 1994, and the
financial highlights for the six-month period ended December 31, 1994, for each
of the seven years in the period ended June 30, 1994 and for the period July
23, 1986 (commencement of operations) to June 30, 1987 in conformity with
generally accepted accounting principles.
Boston, Massachusetts COOPERS & LYBRAND L.L.P.
February 3, 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.
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 Investor
Relations Representative at 1-800-225-5163.
<PAGE>
OFFICERS AND DIRECTORS
Edmond D. Villani*
Chairman of the Board and Director
William E. Holzer*
President
Paul Bancroft III
Director; Venture Capitalist and Consultant
Nicholas Bratt*
Director
Thomas J. Devine
Director; Consultant
William H. Gleysteen, Jr.
Director; President, The Japan Society, Inc.
William H. Luers
Director; President, Metropolitan Museum of Art
Daniel Pierce*
Director and Vice President
Robert G. Stone, Jr.
Director; Chairman of the Board and Director, Kirby Corporation
Robert W. Lear
Honorary Director; Executive-in-Residence, Visiting Professor,
Columbia University Graduate School of Business
Jerard K. Hartman*
Vice President
Thomas W. Joseph*
Vice President
Douglas M. Loudon*
Vice President
Gerald J. Moran*
Vice President
Cornelia M. Small*
Vice President
Lawrence Teitelbaum*
Vice President
David S. Lee*
Vice President and Assistant Treasurer
Thomas F. McDonough*
Vice President and Secretary
Pamela A. McGrath*
Vice President and Treasurer
Edward J. O'Connell*
Vice President and Assistant Treasurer
Juris Padegs*
Vice President and Assistant Secretary
Kathryn L. Quirk*
Vice President and Assistant Secretary
Coleen Downs Dinneen*
Assistant Secretary
*Scudder, Stevens & Clark, Inc.
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.
