This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
Scudder Short Term Global Income Fund
Semiannual Report
April 30, 1995
* A fund designed to provide high current income by investing primarily in
short-term, high-grade fixed-income securities denominated in foreign
currencies and the U.S. dollar.
* A pure no-load(tm) fund with no commissions to buy, sell, or exchange
shares.
<PAGE>
CONTENTS
2 In Brief
3 Letter from the Fund's Chairman
4 Performance Update
5 Portfolio Summary
6 Portfolio Management Discussion
9 Investment Portfolio
14 Financial Statements
17 Financial Highlights
18 Notes to Financial Statements
25 Report of Independent Accountants
29 Officers and Directors
30 Investment Products and Services
31 How to Contact Scudder
IN BRIEF
* Scudder Short Term Global Income Fund returned 0.05% for the six-month
period ended April 30, 1995, exceeding the average return of its peer group
-- short world multimarket funds -- as tracked by Lipper Analytical
Services, Inc.
* A focus on European and dollar-bloc bonds, the period's leading performers,
helped cushion the Fund's setbacks from Mexican-related investments.
* Your Fund's 30-day net annualized SEC yield was 7.10% on April 30, down
from 8.13% six months ago, reflecting an overall decline in global interest
rates and the Fund's shift to lower-yielding issues of European markets.
* Though many interest rates have declined somewhat in recent months,
short-term yields remain relatively high in many bond markets outside the
United States, enabling your Fund to earn an attractive stream of current
income.
(BAR CHART TITLE)
Two-Year Yields in Various Global Markets
(BAR CHART DATA)
10/31/94 4/30/95
Canada 7.62% 7.69%
Italy 10.9 12.24
Spain 10.33 10.87
Sweden 10.03 10.12
United Kingdom 7.8 7.91
United States 6.84 6.58
2
<PAGE>
LETTER FROM THE FUND'S CHAIRMAN
Dear Shareholders,
Since writing to you in Scudder Short Term Global Income Fund's annual
report (October 31, 1994), the global bond markets have improved. The six-month
fiscal period ended April 30, 1995, began just as one of the worst 12 months for
bonds was drawing to a close. Interest rates had risen throughout 1994, creating
losses for bond investors. The Mexican peso's dramatic devaluation in December
kept upward pressure on rates as 1995 began. Since then, evidence of slowing
economies and low relative inflation around the world have buoyed prices and
pushed yields lower.
Your Fund emerged from this eventful semiannual period much where it began,
with a total return of 0.05%. Although small, the Fund's performance was
noticeably better than that of similar short world multimarket funds tracked by
Lipper Analytical Services, which returned -1.28% on average.
Your Fund continues to provide opportunities for U.S. investors to earn
more attractive levels of income than they would by investing in short-term U.S.
bonds alone. As always, the Fund's investment strategy strives for a careful
balance of competitive yield and share price stability.
In closing, I am pleased to announce that Adam Greshin has joined the
portfolio team, which includes Lead Portfolio Manager Margaret Craddock and
Portfolio Manager Gary Johnson. Mr. Greshin, who brings many years of global
bond management experience to Scudder Short Term Global Income Fund, replaces
Larry Teitelbaum, who has left Scudder.
If you have questions about your Fund, please call a Scudder Investor
Relations representative at 1-800-225-2470. Thank you for choosing Scudder Short
Term Global Income Fund to help meet your investment needs.
Sincerely,
/s/Edmond D. Villani
Edmond D. Villani
Chairman,
Scudder Short Term Global Income Fund
3
<PAGE>
Scudder Short Term Global Income Fund
Performance Update as of April 30, 1995
- ------------------------------------------------------------------
Growth of a $10,000 Investment
- ------------------------------------------------------------------
Scudder Short Term Global Income Fund
- ----------------------------------------
Total Return
Period Growth -------------
Ended of Average
4/30/95 $10,000 Cumulative Annual
- --------- ------- ---------- -------
1 Year $10,093 .93% .93%
Life of
Fund* $12,295 22.95% 5.08%
Salomon Brothers Currency-Hedged
World Government Bond Index (1-3 years)
- --------------------------------------
Total Return
Period Growth -------------
Ended of Average
4/30/95 $10,000 Cumulative Annual
- --------- ------- ---------- -------
1 Year $10,572 5.72% 5.72%
Life of
Fund* $12,748 27.48% 6.13%
*The Fund commenced operations on
March 1, 1991. Index comparisons
begin March 31, 1991.
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 April 30
Scudder Short Term Global Income Fund
Year Amount
- ----------------------
3/31/91 10000
91 10072
92 11087
93 11859
94 12169
95 12282
Salomon Brothers Currency-Hedged World
Government Bond Index (1-3 years)
Year Amount
- ----------------------
3/31/91 10000
91 10075
92 10896
93 11702
94 12058
95 12748
The unmanaged Salomon Brothers Currency-Hedged World
Government Bond Index (1-3 years) consists of worldwide
fixed-rate government bonds with one to three years to
maturity. Index returns assume reinvestment of dividends
and, unlike Fund returns, do not reflect and 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 April 30
- ----------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
1991* 1992 1993 1994 1995
----------------------------------------
Net Asset Value... $11.93 $11.95 $11.72 $11.12 $10.39
Income Dividends.. $ .17 $ 1.14 $ 1.01 $ .91 $ .84
Capital Gains
Dividends......... $ -- $ -- $ .02 $ -- $ --
Fund Total
Return (%)........ .83 10.08 6.97 2.61 .93
Index Total
Return (%)........ .75 8.15 7.40 3.04 5.72
</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. If the Advisor
had not temporarily capped expenses, the average annual total return for the
Fund for the one year and life of Fund periods would have been lower.
4
<PAGE>
Portfolio Summary as of April 30, 1995
- ---------------------------------------------------------------------------
Market Exposure
- ---------------------------------------------------------------------------
Debt
Holdings
--------
Australia 1.5%
Belgium -6.1%
Canada 3.6%
Chile 0.6% The Fund emphasized bonds from
Czech 0.4% countries offering attractive yields
Denmark 3.8% and price stability, such as Germany,
ECU -0.3% the Netherlands, and the United States;
France -3.0% and limited its exposure to less stable
Germany -5.6% European markets such as Italy, Spain,
Ireland 3.2% and Sweden.
Italy -3.0%
Netherlands 10.5%
Poland 1.0%
Spain 1.6%
Sweden -0.1%
Switzerland -3.8%
U.K. 1.3%
U.S. 94.4%
------
100.0%
======
(a) Currency exposure after taking into account the effects
of foreign currency options, futures, and forward contracts.
For more complete details about the Fund's Investment Portfolio,
see page 10.
A monthly Investment Portfolio Summary is available upon request.
5
<PAGE>
PORTFOLIO MANAGEMENT DISCUSSION
Dear Shareholders,
Global bond market conditions changed significantly during the six months
ended April 30, 1995. For the period, the Fund generated a total return of
0.05%, reflecting a $0.39 per share drop in price to $10.39 on April 30, which
was offset largely by the reinvestment of monthly dividend distributions
totaling $0.40 per share. From a competitive standpoint, your Fund performed
decidedly better than the 44 short world multimarket funds tracked by Lipper
Analytical Services, which returned -1.28% on average. However, the Fund's
return lagged the 4.40% return of the Salomon Brothers Currency-Hedged World
Government Bond Index (1-3 years) for the same period.
The Fund's 30-day net annualized SEC yield declined to 7.10% on April 30,
1995, from 8.13% six months earlier. The Fund's shift away from high-yielding
Italian and emerging bond markets, along with the general decline in interest
rates over the final months of the semiannual period, contributed to the lower
yield.
Global Bond Markets Show Marked Improvement After peaking in November, U.S.
interest rates were among the first to fall as economic growth here slowed to a
healthier pace and inflation remained low. Outside the United States, slow
growth combined with low inflation later helped push down bond yields throughout
Europe, as well as in dollar-bloc countries like Canada and Australia, and in
Asia. By the period's end, even emerging bond markets had staged impressive
rallies, after suffering earlier in 1995 as a result of the Mexican peso
devaluation.
In the weeks after the devaluation, as the Mexican peso's value fell 45%
against the U.S. dollar, repercussions radiated as far as Indonesia.
High-yielding European markets with lofty debt levels and uncertain political
landscapes -- such as Italy, Sweden, and Spain -- suffered. Sound fiscal and
monetary regimens in Germany, the Netherlands, and Denmark enabled those bond
markets to pull ahead.
In the currency markets, the deutschemark strengthened dramatically
relative to the U.S. dollar, in part reflecting investor confidence in Germany.
The Japanese yen climbed sharply relative to the dollar as Japanese investors
continued to keep their money at home, thus contributing to the yen's scarcity
in capital markets. Not surprisingly, the dollar strengthened against Latin
American currencies as well as the Italian lira, Spanish peseta, and Canadian
dollar. In recent weeks, however, global currency fluctuations have subsided
markedly.
6
<PAGE>
Portfolio Composition Changed Significantly
By the end of the period, the Fund's portfolio mix looked very different
than it did at the start. In general, we focused on bonds from stable markets
and moved away from issues that we believed had become higher risks. At the same
time, we refrained in large part from taking on foreign currency exposure.
At the start of the semiannual period, the portfolio featured U.S. bonds
and those of dollar-bloc nations such as Australia and New Zealand -- holdings
we sought to help reduce the impact of currency fluctuations. European bonds
with attractive price and yield characteristics also constituted a large portion
of the portfolio, especially Danish, Italian, and European Currency Unit (ECU)
bonds. We favored Danish bonds because Denmark's fiscal and labor policies make
it one of the best-managed European economies. Italian bonds provided the high
yields typically demanded of heavily-indebted governments. ECU-denominated bonds
offered a combination of relative price stability and the opportunity to
participate in the positive market fundamentals of the issuing countries. The
ECU's value is based on an underlying basket of European currencies, although
its movements tend to track that of the mark, which accounts for 30% of the ECU.
The Fund also held select investments in Latin America and other emerging bond
markets, including Thailand, Indonesia, and South Africa, where yields are among
the highest available anywhere.
When the Mexican peso was devalued in late December, we immediately began
to sell the Fund's emerging-market holdings. In anticipation of forced sales by
investors trying to cover mounting losses in Latin America, we first disposed of
the Fund's Asian bonds, thus protecting the Fund from the subsequent decline in
Asian markets. However, we took losses in eliminating our 7% position in Mexico,
as we sold during a turbulent period. By early February, we had reduced our
position in emerging markets to approximately 5% of the portfolio.
We also sold the Fund's Italian holdings early in 1995. Attractive yields
no longer were a compelling enough reason to stay in many of the high-debt
markets, as investors harshly scrutinized weaker economies in light of Mexico's
problems. We scaled back investments in other secondary European countries --
Spain and Sweden, specifically -- and we directed the proceeds into more stable
European bond markets, primarily the Netherlands and Germany. We favored
7
<PAGE>
European bonds at the longer end of the short-term maturity spectrum to lock in
attractive yields and the potential for price appreciation, based on indications
of slowing economic growth in Europe and the likelihood of some declines in
interest rates. Increased holdings of these bonds lengthened the average
portfolio maturity to 2.7 years at the end of the period from 2.1 years on
October 31.
In the dollar-bloc markets, we reestablished positions in Canadian bonds,
which provided attractive real (inflation-adjusted) yields. We were also
encouraged by the concrete steps the country has taken to remedy the fiscal
problems that motivated us to eliminate Canadian holdings last fall. Among the
holdings that remained essentially in place were a broad selection of bonds from
Denmark, France, and the ECU marketplace, which continued to offer attractive
yields. Australian bonds also have retained a steady presence. Australian bond
yields are higher than those available in the United States, and the relatively
late stage of Australia's economic expansion could herald lower short-term
interest rates and improving bond prices.
Throughout the period, the majority of the portfolio was hedged back to
U.S. dollars, which limited the impact of foreign currency fluctuations. Early
in 1995, this hedging strategy protected the Fund. When major currencies like
the mark, yen, and Dutch guilder appreciated against the U.S. dollar this
spring, however, the Fund's dollar-based currency strategy resulted in losses
for the portfolio. As a result of these currency-related losses, it is likely
that a portion of the Fund's income dividends in fiscal year 1995 will be
treated as nontaxable distributions. Recently, we have increased the Fund's
currency exposure to select foreign markets, though the majority of the
portfolio remains hedged to U.S. dollars.
Outlook
Various reports on consumer spending, housing, and auto sales are pointing
to slowing U.S. economic activity, indicating that little room is left for U.S.
interest rates to rise. Rates could rise if job growth remains steady and
consumer demand increases over the next six months (declining interest rates in
recent months have made it easier to borrow money), although the evidence
remains to be seen. Meanwhile, economies in Europe and much of Asia are slowing
and inflation rates remain low, creating a favorable environment for bonds.
8
<PAGE>
Overall, our approach remains cautious as we focus on bond markets with
manageable debt levels, low inflation rates, and stable currencies. We continue
to steer clear of emerging countries despite their recent rally, yet we'll watch
these markets in the coming months for opportunities. The Fund's exposure to
foreign currencies is expected to remain minimal, given our expectation of
modest U.S. dollar strengthening in the near term. As always, we will continue
to monitor fundamental relationships among the world's major currencies to
determine the Fund's currency strategy in the months ahead.
Sincerely,
Your Portfolio Management Team
/s/Margaret R. Craddock /s/Gary P. Johnson
Margaret R. Craddock Gary P. Johnson
/s/Adam M. Greshin
Adam M. Greshin
9
<PAGE>
<TABLE>
SCUDDER SHORT TERM GLOBAL INCOME FUND INVESTMENT PORTFOLIO as of April 30, 1995
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Principal Market
Portfolio Amount Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
----------------------------------------------------------------------------------------------------
77.6% FOREIGN DENOMINATED DEBT OBLIGATIONS
----------------------------------------------------------------------------------------------------
AUSTRALIAN DOLLARS 8.5% AUD 45,890,000 Commonwealth of Australia, 12.5%, 3/15/97................. 35,405,502
-----------
BRITISH POUNDS 3.2% GPB 8,180,000 United Kingdom Treasury Bond, 8.75%, 9/1/97............... 13,388,014
-----------
CANADIAN DOLLARS 7.3% CAD 18,000,000 Government of Canada, 6.25%, 2/1/98....................... 12,742,327
24,900,000 Government of Canada, 6.5%, 9/1/98........................ 17,614,603
-----------
30,356,930
-----------
CHILEAN PESOS 0.6% CLP 979,362,264 Citibank Time Deposit, 14.45%,5/3/95...................... 2,519,260
-----------
CZECH KORUNA 0.4% CSK 40,000,000 Czech Republic, 14.6%, 3/18/97............................ 1,643,645
-----------
DANISH KRONER 7.2% DKK 20,000,000 Kingdom of Denmark,5.25%, 8/10/96......................... 3,595,799
80,000,000 Kingdom of Denmark, 6%, 2/10/96........................... 14,581,414
64,000,000 Kingdom of Denmark, 9%, 11/15/96.......................... 12,041,009
-----------
30,218,222
-----------
DEUTSCHEMARKS 12.6% DEM 14,000,000 Federal Republic of Germany,
6%, 2/20/98.............................................. 10,142,399
29,000,000 Federal Republic of Germany, 6.625%, 1/20/98.............. 21,314,222
28,000,000 Federal Republic of Germany, 7.25%, 10/20/97.............. 20,867,649
-----------
52,324,270
-----------
DUTCH GUILDERS 12.5% NLG 60,500,000 Government of the Netherlands, 6.25%, 7/15/98............. 39,094,712
19,500,000 Government of the Netherlands, 7.5%, 6/15/99.............. 13,081,079
-----------
52,175,791
-----------
EUROPEAN CURRENCY
UNITS 11.6% ECU 1,000,000 Nacional Financiera SNC, 10.25%, 3/11/97.................. 1,189,866
4,000,000 Republic of Turkey, 11.5%, 5/26/95........................ 5,272,298
17,000,000 United Kingdom Treasury Bond, 5.25%, 1/21/97.............. 21,807,723
14,900,000 United Kingdom Treasury Bond, 8%, 1/27/98................. 19,954,970
-----------
48,224,857
-----------
FRENCH FRANCS 2.0% FRF 40,000,000 Government of France, 8.5%, 3/12/97....................... 8,321,823
-----------
IRISH PUNTS 3.2% IEP 8,165,000 Republic of Ireland Treasury Bond, 8.75%, 7/27/97......... 13,424,250
-----------
POLISH ZLOTYS 1.0% PLZ 9,589,779 Morgan Guaranty Trust Co. Time Deposit, 26.6%, 6/21/95.... 4,053,332
-----------
SPANISH PESETAS 4.5% ESP 2,400,000,000 Kingdom of Spain, 10.25%,11/30/98......................... 18,706,360
-----------
SWEDISH KRONOR 3.0% SEK 90,000,000 Kingdom of Sweden, 11%, 1/21/99........................... 12,507,390
-----------
TOTAL FOREIGN DENOMINATED DEBT
OBLIGATIONS (Cost $307,869,684).......................... 323,269,646
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements
10
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Principal Market
Portfolio Amount Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
----------------------------------------------------------------------------------------------------
22.3% U.S. DOLLAR DENOMINATED DEBT OBLIGATIONS
----------------------------------------------------------------------------------------------------
U.S. DOLLARS USD 16,202,000 Associates Corp. of North America,
Commercial Paper, 5.873%, 5/1/95............................ 16,202,000
140,152 Federal Home Loan Mortgage Corp.,
REMIC, Series 1543 PN, Interest only, 2/15/08............... 382,884
2,380,875 Federal Home Loan Mortgage Corp.,
Series 1223 C, 7.25%, 7/15/20............................... 2,367,483
3,874,829 General Electric Capital Mortgage Services,
Inc., 1991-5 Series A (PT), 8.5%, 9/25/06*.................. 3,940,217
17,300,000 Home Savings of America Subordinated Note,
10.5%, 6/12/97.............................................. 17,829,813
4,500,000 RJR Nabisco Inc., Medium-Term Note,
6.8%, 9/1/01................................................ 4,438,125
5,269,398 Suma Huaico SA Promissory Note, 5/31/95....................... 5,207,278
3,500,000 Time Warner Inc., Senior Note, 7.45%, 2/1/98.................. 3,465,000
5,000,000 U.S. Treasury Note, 5.625%, 8/31/97........................... 4,889,063
19,000,000 U.S. Treasury Note, 6%, 6/30/96*.............................. 18,910,938
6,025,407 United Companies Financial Corp., Home
Loan Trust, Series 1993 B1, 6.075% 7/25/14.................. 5,682,712
10,000,000 United Savings Association of Texas,
9.05%, 5/15/98.............................................. 9,800,000
-----------
TOTAL U.S. DOLLAR DENOMINATED DEBT
OBLIGATIONS (Cost $95,112,712).............................. 93,115,513
-----------
TOTAL INVESTMENTS (Cost $402,982,396)......................... 416,385,159
-----------
----------------------------------------------------------------------------------------------------
0.1% PURCHASED OPTIONS
----------------------------------------------------------------------------------------------------
AUD 17,751,870 Put on Australian Dollars, strike price
AUD .7097, expiration 7/6/95................................ 82,049
CAD 30,190,146 Put on Canadian Dollars, strike price
CAD 1.4335, expiration date 6/22/95......................... 2,083
DEM 19,400,000 Put on Deutschemarks, strike price
DEM 1.465, expiration date 9/5/95........................... 111,744
DEM 27,100,000 Put on Deutschemarks, strike price
DEM 1.5468, expiration date 8/11/95......................... 43,360
DEM 43,200,000 Put on Deutschemarks, strike price
DEM 1.56, expiration date 8/8/95............................ 50,026
FRF 58,700,000 Put on French Francs, strike price
FRF 5.29, expiration date 5/2/95............................ 159
</TABLE>
The accompanying notes are an integral part of the financial statements
11
<PAGE>
<TABLE>
SCUDDER SHORT TERM GLOBAL INCOME FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Number of Market
Contracts Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
2,500 Put on December 1995 Eurodeutschemarks
Futures, strike price 93.5, expiration
date 12/18/95............................................... 198,077
-----------
TOTAL PURCHASED OPTIONS (Cost $2,157,862)..................... 487,498
-----------
===================================================================================================================================
TOTAL INVESTMENT PORTFOLIO - 100.0%
(Cost $405,140,258) (a)..................................... 416,872,657
===========
<FN>
(a) The cost for federal income tax purposes was $405,140,258. At April 30,
1995, net unrealized appreciation for all securities based on tax cost was
$11,732,399. This consisted of aggregate gross unrealized appreciation for
all securities in which there was an excess of market value over tax cost
of $16,431,044 and aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over market value of
$4,698,645.
FUTURES
* At April 30, 1995, $1,937,415 par value of General Electric Capital
Mortgage Services, Inc., 8.5%, 9/25/06 with a market value of $1,970,109
and $1,500,000 par value of U.S. Treasury Note, 6%, 6/30/96 with a market
value of $1,492,969 were pledged to cover initial margin requirements on
open futures contracts.
</FN>
</TABLE>
At April 30, 1995, open foreign futures contracts sold short were as follows
(Note A):
<TABLE>
<CAPTION>
Number of Aggregate Market
Index Expiration Contracts Face Value ($) (1) Value ($) (1)
- ----- ---------- --------- ------------------ -------------
<S> <C> <C> <C> <C>
Australian Notes.... Jun 1995 152 27,007,417 27,055,506
Eurodeutschemarks... Jun 1995 100 17,005,159 17,207,171
Euro ECU............ Jun 1995 60 18,456,104 18,588,729
Eurodeutschemarks... Sep 1995 100 16,998,846 17,176,509
Euro ECU............ Sep 1995 60 18,346,388 18,568,865
Eurodeutschemarks... Dec 1995 100 16,937,069 17,122,398
Euro ECU............ Dec 1995 60 18,407,967 18,529,137
Eurodeutschemarks... Mar 1996 100 16,914,974 17,077,306
Euro ECU............ Mar 1996 60 18,342,416 18,491,396
--- ----------- -----------
792 168,416,340 169,817,017
=== =========== ===========
Total unrealized depreciation on open futures contracts...................... (1,400,677)
===========
<FN>
(1) For purposes of these tables, values of foreign denominated futures
contracts have been translated into U.S. dollars using the period ended
foreign exchange rates.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements
12
<PAGE>
INVESTMENT PORTFOLIO
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
WRITTEN OPTIONS
- --------------------------------------------------------------------------------
At April 30, 1995 outstanding written options were as follows (Note A):
<TABLE>
<CAPTION>
Principal
Amount Expiration Strike Market
Call Options (000's) Date Price Value($)
- ------------ ----------- ---------- --------- --------
<S> <C> <C> <C> <C>
CAD........... 12,500 5/31/95 CAD1.360 58,125
CAD........... 11,841 6/9/95 CAD1.373 121,491
CAD........... 17,264 6/22/95 CAD1.385 264,229
GBP........... 8,300 6/29/95 GBP1.5985 287,180
ESP........... 2,310,000 6/30/95 ESP125.8 570,570
ITL........... 45,500,000 6/30/95 ITL1,694 682,500
AUD........... 8,752 7/6/95 AUD.7336 67,704
<CAPTION>
Number of
Contracts
----------
<S> <C> <C> <C> <C>
Eurodollar
Futures..... 180 12/18/95 93.25 180,000
Eurodollar
Futures..... 180 3/18/96 93.5 166,500
Eurodollar
Futures..... 180 6/18/96 93.5 189,000
Eurodollar
Futures..... 180 9/18/96 93.25 259,200
----------
</TABLE>
Total outstanding written options (Premiums received $2,528,848) 2,846,499
==========
<TABLE>
<CAPTION>
CURRENCY ABBREVIATIONS
- ---------------------------
<S> <C>
AUD Australian Dollar
ECU European Currency Unit
BEF Belgian Franc
FRF French Franc
GBP British Pound
DEM German Deutschemark
CAD Canadian Dollar
IEP Irish Punt
CLP Chilean Peso
ITL Italian Lira
CSK Czech Koruna
ESP Spanish Peseta
DKK Danish Krone
SEK Swedish Krona
NLG Dutch Guilder
USD United States Dollar
PLZ Polish Zloty
</TABLE>
The accompanying notes are an integral part of the financial statements
13
<PAGE>
<TABLE>
SCUDDER SHORT TERM GLOBAL INCOME FUND FINANCIAL STATEMENTS
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- -----------------------------------------------------------------------------------------------
<CAPTION>
APRIL 30, 1995
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments, at market (identified cost
$402,982,396) (Note A).................................... $416,385,159
Purchased options, at market (identified cost
$2,157,862) (Note A)...................................... 487,498
Cash.............................................................. 261,073
Forward foreign currency exchange contracts to
buy, at market (contract cost $90,875,835)
(Notes A and E)........................................... 91,450,830
Receivable on forward foreign currency exchange
contracts to sell (Notes A and E)......................... 322,392,393
Receivable on investments sold.................................... 39,343,977
Interest receivable............................................... 11,061,978
Receivable on fund shares sold.................................... 124,844
Deferred organization expenses (Note A)........................... 9,724
Other assets...................................................... 35,015
------------
Total assets.............................................. 881,552,491
LIABILITIES
Investments purchased..................................... $ 39,199,665
Dividends payable......................................... 2,560,616
Fund shares redeemed...................................... 315,775
Variation margin on open foreign futures
contracts (Note A)................................ 123,661
Accrued management fee (Note C)........................... 298,235
Other accrued expenses and payables (Note C).............. 391,474
Written options, at market (premiums received
$2,528,848) (Note A).............................. 2,846,499
Payable for forward foreign currency exchange
contracts to buy (Notes A and E).................. 90,875,835
Payable for forward foreign currency exchange
contracts to sell (contract cost $322,392,393)
(Notes A and E)................................... 332,336,670
------------
Total liabilities......................................... 468,948,430
------------
Net assets, at market value....................................... $412,604,061
============
NET ASSETS
Net assets consist of:
Net unrealized appreciation (depreciation) on:
Investments............................................... $ 13,402,763
Options................................................... (1,988,015)
Futures contracts......................................... (1,400,677)
Foreign currency related transactions..................... (8,972,215)
Accumulated net realized loss..................................... (35,789,837)
Capital stock..................................................... 397,282
Additional paid-in capital........................................ 446,954,760
------------
Net assets, at market value....................................... $412,604,061
============
NET ASSET VALUE, offering and redemption price per
share ($412,604,061 divided by 39,728,225 shares of
capital stock outstanding, $.01 par value,
300,000,000 shares authorized)............................ $ 10.39
============
</TABLE>
The accompanying notes are an integral part of the financial statements
14
<PAGE>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED APRIL 30, 1995
- ------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest (net of foreign taxes withheld of $353,474)... $ 20,630,453
Expenses:
Management fee (Note C)................................ $1,307,907
Services to shareholders (Note C)...................... 516,566
Directors' fees and expenses (Note C).................. 16,884
Custodian fees......................................... 308,281
Reports to shareholders................................ 70,300
Auditing............................................... 50,400
Legal.................................................. 24,212
State registration fees................................ 29,166
Amortization of organization expenses (Note A)......... 5,805
Interest (Note D)...................................... 17,788
Other.................................................. 14,482 2,361,791
--------------------------
Net investment income.................................. 18,268,662
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT TRANSACTIONS
Net realized gain (loss) from:
Investments.................................... (8,156,657)
Options........................................ (973,984)
Futures contracts.............................. 484,187
Foreign currency related transactions.......... (22,083,663) (30,730,117)
------------
Net unrealized appreciation (depreciation) during the
period on:
Investments.................................... 11,008,057
Options........................................ 644,053
Futures contracts.............................. (1,049,328)
Foreign currency related transactions.......... 1,439,810 12,042,592
--------------------------
Net loss on investment transactions.................... (18,687,525)
------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS... $ (418,863)
============
</TABLE>
The accompanying notes are an integral part of the financial statements
15
<PAGE>
SCUDDER SHORT TERM GLOBAL INCOME FUND
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, OCTOBER 31,
INCREASE (DECREASE) IN NET ASSETS 1995 1994
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income................................ $ 18,268,662 $ 59,953,874
Net realized loss from investment transactions....... (30,730,117) (52,947,602)
Net unrealized appreciation (depreciation)
on investment transactions during the
period........................................... 12,042,592 (12,317,902)
Net decrease in net assets resulting from ------------- --------------
operations....................................... (418,863) (5,311,630)
Distributions to shareholders from: ------------- --------------
Net investment income ($.40 and $.02
per share, respectively)......................... (18,256,553) (1,254,033)
Tax return of capital ($.85 per share)............... -- (58,437,746)
Fund share transactions: ------------- --------------
Proceeds from shares sold............................ 31,254,079 212,114,019
Net asset value of shares issued to
shareholders in reinvestment of
distributions.................................... 13,100,793 45,034,626
Cost of shares redeemed.............................. (173,004,613) (673,153,473)
------------- --------------
Net decrease in net assets from Fund
share transactions............................... (128,649,741) (416,004,828)
------------- --------------
DECREASE IN NET ASSETS............................... (147,325,157) (481,008,237)
Net assets at beginning of period.................... 559,929,218 1,040,937,455
------------- --------------
NET ASSETS AT END OF PERIOD.......................... $ 412,604,061 $ 559,929,218
============= ==============
OTHER INFORMATION
INCREASE (DECREASE) IN FUND SHARES
Shares outstanding at beginning of period............ 51,959,978 89,107,607
------------- --------------
Shares sold.......................................... 2,959,084 18,796,142
Shares issued to shareholders in reinvestment
of distributions................................. 1,240,777 4,010,556
Shares redeemed...................................... (16,431,614) (59,954,327)
------------- --------------
Net decrease in Fund shares.......................... (12,231,753) (37,147,629)
------------- --------------
Shares outstanding at end of period.................. 39,728,225 51,959,978
============= ==============
</TABLE>
The accompanying notes are an integral part of the financial statements
16
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
THE FOLLOWING TABLE INCLUDES SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT
EACH PERIOD AND OTHER PERFORMANCE INFORMATION DERIVED FROM THE FINANCIAL
STATEMENTS.
<TABLE>
<CAPTION>
FOR THE PERIOD
MARCH 1, 1991
SIX MONTHS (COMMENCEMENT
ENDED YEARS ENDED OCOTBER 31, OF OPERATIONS)
APRIL 30, ---------------------------- TO OCTOBER 31,
1995 1994 1993 1992 1991
---------- ---------------------------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period..................... $10.78 $11.68 $11.84 $12.01 $12.00
Income from investment operations: ------ ------ ------ ------ ------
Net investment income (a).............................. .40 .87 .95 1.08 .76
Net realized and unrealized gain (loss) on
investment transactions............................... (.39) (.90) (.14) (.17) .01
------ ------ ------ ------ ------
Total from investment operations......................... .01 (.03) .81 .91 .77
------ ------ ------ ------ ------
Less distributions from:
Net investment income.................................. (.40) (.02) (.95) (1.08) (.76)
Net realized gains on investments...................... -- -- (.02) -- --
Tax return of capital.................................. -- (.85) -- -- --
------ ------ ------ ------ ------
Total distributions...................................... (.40) (.87) (.97) (1.08) (.76)
------ ------ ------ ------ ------
Net asset value, end of period........................... $10.39 $10.78 $11.68 $11.84 $12.01
====== ====== ====== ====== ======
TOTAL RETURN (%)......................................... .05** (.25) 7.14 7.83 6.65**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period ($ millions)................... 413 560 1,041 1,369 205
Ratio of operating expenses, net to average daily
net assets (%) (a)..................................... 1.00* 1.00 1.00 1.00 1.00*
Ratio of net investment income to average daily
net assets (%)......................................... 7.73* 7.76 8.10 8.94 9.97*
Portfolio turnover rate (%).............................. 234.3* 272.4 259.8 274.2 26.1*
(a) Reflects a per share amount of management fee not
imposed by the Adviser........................... $ .01 $ .02 $ .01 $ .03 $ .06
Operating expense ratio including management fee
and other expenses not imposed (%)............... 1.20* 1.15 1.11 1.23 1.89*
</TABLE>
* Annualized
** Not annualized
17
<PAGE>
SCUDDER SHORT TERM GLOBAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
A. SIGNIFICANT ACCOUNTING POLICIES
- -------------------------------------------------------------------------------
Scudder Short Term Global Income Fund (the "Fund") is a non-diversified series
of Scudder Global Fund, Inc., a Maryland 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 debt securities with remaining maturities greater
than sixty days are valued by pricing agents approved by the officers of the
Fund, which prices reflect broker/dealer-supplied valuations and electronic data
processing techniques. If the pricing agents are unable to provide such
quotations, the most recent bid quotation supplied by a bona fide market maker
shall be used. All other debt securities are valued at their fair value as
determined in good faith by the Valuation Committee of the Board of Directors.
Short-term investments having a maturity of sixty days or less are valued at
amortized cost.
OPTIONS. The Fund may write (sell) exchange-listed and over-the-counter call
and put options on securities, currencies and other financial instruments. When
the Fund writes a call, it gives the purchaser of the call option the right to
buy the underlying security or currency at the price specified in the option
(the "exercise price") at any time during the option period, generally ranging
up to nine months for American style options and for European style options at
the expiration date. When the Fund writes a put option, it gives the purchaser
of the put option the right to sell the underlying security or currency to the
Fund at the exercise price at any time during the option period, generally
ranging up to nine months for American style options and for European style
options at the expiration date. If the option expires unexercised, the Fund will
realize income, in the form of a capital gain, to the extent of the amount
received for the option (the "premium"). If the option is exercised, a decision
over which the Fund has no control, the Fund must sell the underlying security
or currency to the option holder or purchase the underlying security or currency
from the option holder at the exercise price. Certain options, including options
on indices will require cash settlement by the Fund if the option is exercised.
By writing a call option, the Fund foregoes, in exchange for the premium less
the commission ("net premium"), the opportunity to profit during the option
period from an increase in the market value of the underlying security or
currency above the
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
exercise price. By writing a put option, the Fund, in exchange for the net
premium received, accepts the risk of a decline in the market value of the
underlying security or currency below the exercise price. The liability
representing the Fund's obligation under an exchange traded written call or put
option is valued at the last sale price or, in the absence of a sale, the mean
between the closing bid and asked price or at the most recent asked price if no
bid and asked price are available. Over-the-counter written options are valued
using dealer supplied valuations.
In addition, the Fund may purchase, singly and in combination, call and put
options on securities, currencies and securities indices. Exchange traded
purchased options are valued at the last sales price or, in the absence of a
sale, the mean between the closing bid and asked prices or at the most recent
bid price if no bid and asked prices are available. Over-the-counter purchased
options are valued using dealer supplied valuations.
OPTIONS ON FUTURES CONTRACTS. The Fund may purchase and write (sell) call and
put options on futures contracts which are traded for bona fide hedging
purposes. Options on futures contracts will be valued in accordance with the
security and options valuation policies described above.
FUTURES CONTRACTS. The Fund may enter into interest rate, securities index and
currency futures contracts for bona fide hedging purposes. Upon entering into
a futures contract, the Fund is required to deposit with a broker an amount
("initial margin") equal to a certain percentage of the purchase price
indicated in the futures contract. Subsequent payments ("variation margin")
are made or received by the Fund each day for U.S. futures contracts
(periodically for foreign futures), dependent on the daily fluctuations in the
value of the underlying security, and are recorded for financial reporting
purposes as unrealized gains or losses by the Fund. When entering into a
closing transaction, the Fund will realize, for book purposes, a gain or loss
equal to the difference between the value of the futures contract to sell and
the futures contract to buy. Futures contracts are valued at the most recent
settlement price. Certain risks may arise upon entering into futures contracts
from the contingency of imperfect market conditions.
INDEXED SECURITIES. Indexed securities held by the Fund are investments whose
value is indexed to another financial instrument, index, currency, or commodity
(the "reference instrument"). For principal indexed securities, the principal
amount payable at maturity may be more or less than the amounts shown depending
on fluctuations in the value of the reference instrument. For coupon
19
<PAGE>
SCUDDER SHORT TERM GLOBAL INCOME FUND
- -------------------------------------------------------------------------------
indexed securities, the principal amount payable at maturity is fixed. However,
the coupon is indexed to the reference instrument. The price sensitivity of
these securities may be greater than that of non-indexed securities with
similar maturities.
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, interest income and
certain expenses at the daily 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 accrual and payment dates on 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 (loss) from foreign currency related transactions.
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.
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
At October 31, 1994, the Fund had a net tax basis capital loss carryforward of
approximately $4,462,620, which may be applied against any realized net taxable
capital gains of each succeeding year until fully utilized or until October 31,
2002, whichever occurs first.
DISTRIBUTION OF INCOME AND GAINS. Distribution of net investment income is
declared as a dividend to shareholders of record as of the close of business
each day and is distributed to shareholders monthly. During any particular year
net realized gains and certain unrealized gains (which for federal income tax
reporting purposes may be considered realized) from investment transactions, in
excess of available capital loss carryforwards, would be taxable to the Fund if
not distributed and, therefore, will be distributed to shareholders. An
additional distribution may be made to the extent necessary to avoid the payment
of a four percent federal excise tax.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax regulations
which may differ from generally accepted accounting principles. These
differences relate primarily to investments in options, futures, forward foreign
currency contracts and foreign currency denominated investments. 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.
For the fiscal year ending October 31,1995, it is likely that a portion of the
Fund's income dividends will be treated as nontaxable return of capital
distributions under U.S. tax rules. The final tax status of 1995 distributions
will be provided to shareholders in January 1996 on Form 1099-DIV.
The Fund uses the identified cost method for determining realized gain or loss
on investments for both financial and federal income tax reporting purposes.
ORGANIZATION COSTS. Costs incurred by the Fund in connection with its
organization and initial registration of shares have been deferred and are being
amortized on a straight-line basis over a five-year period.
OTHER. Investment security transactions are accounted for on a trade date basis.
Distributions of net realized gains to shareholders are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. All
discounts are accreted for both tax and financial reporting purposes.
21
<PAGE>
SCUDDER SHORT TERM GLOBAL INCOME FUND
- --------------------------------------------------------------------------------
B. PURCHASES AND SALES OF SECURITIES
- --------------------------------------------------------------------------------
During the six months ended April 30, 1995, purchases and
sales (including maturities) of investment securities
(excluding short-term investments) aggregated $445,935,691
and $519,294,040, respectively.
The aggregate face value of futures contracts opened and
closed during the six months ended April 30, 1995 was
$332,789,433 and $715,796,375, respectively.
Transactions in written options for the six months ended
April 30, 1995 are summarized as follows:
OPTIONS ON CURRENCIES (000 OMITTED)
-----------------------------------
<TABLE>
<CAPTION>
NUMBER OF
CONTRACTS PREMIUMS AUD CAD ESP GBP PREMIUMS
--------- -------- --- --- --- --- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Beginning
of Period 920 $ 402,334 39,193 -- -- -- $ 436,337
Written... 2,175 1,964,142 138,208 78,214 6,960,000 33,200 3,148,697
Closed.... (2,375) (1,533,201) (91,652) (36,609) (2,310,000) (24,900) (1,733,703)
Exercised -- -- (39,802) -- (2,340,000) -- (551,951)
Expired... -- -- (37,195) -- -- -- (269,542)
End of ------- ----------- ------- ------- ---------- ------- -----------
Period 720 $ 833,275 8,752 41,605 2,310,000 8,300 $ 1,029,838
======= =========== ======= ======= ========== ======= ===========
</TABLE>
OPTIONS ON CURRENCIES (000 OMITTED)
-----------------------------------
<TABLE>
<CAPTION>
ITL JPY NZD ESP/DEM ITL/DEM SEK/DEM PREMIUMS
--- --- --- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Beginning
of Period -- 934,928 35,500 2,540,000 43,000,000 160,000 $ 1,333,701
Written... 318,500,000 -- -- 1,500,000 118,000,000 545,000 3,846,588
Closed.... (273,000,000) (934,928) (35,500) (1,500,000) (32,000,000) (190,000) (3,123,008)
Exercised -- -- -- -- -- (351,000) (438,751)
Expired... -- -- -- (2,540,000) (129,000,000) (164,000) (952,795)
------------ -------- ------- ---------- ------------ -------- -----------
End of
Period... 45,500,000 -- -- -- -- -- $ 665,735
============ ======== ======= ========== ============ ======== ===========
</TABLE>
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
C. RELATED PARTIES
- --------------------------------------------------------------------------------
Under the Investment Management Agreement (the "Agreement") with Scudder,
Stevens & Clark, Inc. (the "Adviser"), the Fund has agreed to pay to the Adviser
a fee equal to an annual rate of 0.75% of the first $1,000,000,000 of average
daily net assets and 0.70% of such assets in excess of $1,000,000,000 computed
and accrued daily and payable monthly. As manager of the assets of the Fund, 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 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. The
Adviser has agreed not to impose all or a portion of its management fee until
February 29, 1996, and during such period to maintain the annualized expenses of
the Fund at not more than 1.00% of average daily net assets. For the six months
ended April 30, 1995, the Adviser did not impose a portion of its management fee
aggregating $478,162 and the amount imposed aggregated $1,307,907, which was
equivalent to an annual effective rate of 0.55% of the Fund's average daily net
assets.
Scudder Service Corporation ("SSC"), a wholly-owned subsidiary of the Adviser,
is the transfer, dividend paying and shareholder service agent for the Fund. For
the six months ended April 30, 1995, the amount charged by SSC aggregated
$396,893, of which $60,648 is unpaid at April 30, 1995.
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 April 30, 1995, Directors' fees and expenses aggregated $16,884.
D. SHORT-TERM DEBT
- --------------------------------------------------------------------------------
During the six months ended April 30, 1995, the Fund periodically borrowed
amounts from a bank at the existing prime rates. The arrangement with the bank
allows the Fund to borrow a maximum amount based on net asset value. There were
no month-end borrowings outstanding during the six months ended April 30, 1995.
23
<PAGE>
SCUDDER SHORT TERM GLOBAL INCOME FUND
- -------------------------------------------------------------------------------
During the six months ended April 30, 1995, the weighted average outstanding
daily balance of bank loans (based on the number of days the loans were
outstanding) was $4,617,471 with a weighted average interest rate of 8.24%.
Interest expense for the six months ended April 30, 1995 was $17,788 (less than
$.01 per share).
E. COMMITMENTS
- --------------------------------------------------------------------------------
As of April 30, 1995, the Fund had entered into the following forward foreign
currency exchange contracts resulting in net unrealized depreciation of
$9,369,282.
<TABLE>
<CAPTION>
NET UNREALIZED
APPRECIATION
(DEPRECIATION)
CONTRACTS TO DELIVER IN EXCHANGE FOR SETTLEMENT DATE (U.S.$)
- -------------------- --------------- --------------- --------------
<S> <C> <C> <C>
USD 47,691 AUD 65,419 5/2/95 (108)
USD 87,464 DEM 120,000 5/2/95 (887)
USD 173,971 ESP 21,262,685 5/2/95 (1,285)
USD 74,226 ECU 55,804 5/2/95 (327)
AUD 7,487 USD 5,460 5/2/95 15
DEM 22,500 USD 16,157 5/2/95 (76)
USD 19,335,924 NLG 30,086,698 5/4/95 46,001
DEM 26,871,700 USD 19,339,811 5/4/95 (47,441)
ECU 37,077,979 USD 48,780,966 5/17/95 to 7/24/95 (199,592)
BEF 720,097,000 USD 23,228,935 5/22/95 (1,933,533)
DKK 123,863,080 USD 20,852,370 5/22/95 (1,858,548)
SEK 93,288,600 USD 12,649,130 5/22/95 (139,766)
USD 8,361,873 DKK 45,556,320 5/22/95 460
NLG 40,498,521 USD 25,770,615 6/28/95 (333,885)
USD 17,488,244 NLG 27,421,567 6/28/95 198,525
FRF 41,343,712 USD 21,127,781 7/6/95 to 7/25/95 528,489
AUD 31,067,740 USD 22,718,594 7/12/95 181,242
CHF 18,068,105 USD 15,711,396 9/13/95 (216,059)
DEM 162,397,524 USD 112,191,178 9/14/95 to 1/29/96 (5,925,123)
USD 45,306,442 DEM 19,400,000 9/14/95 to 1/29/96 332,616
----------
(9,369,282)
==========
</TABLE>
24
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
TO THE BOARD OF DIRECTORS OF SCUDDER GLOBAL FUND, INC. AND TO THE SHAREHOLDERS
OF SCUDDER SHORT TERM GLOBAL INCOME FUND:
We have audited the accompanying statement of assets and liabilities of Scudder
Short Term Global Income Fund including the investment portfolio, as of April
30, 1995, 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 October 31, 1994, and the financial highlights for
the six month period ended April 30, 1995, for each of the three years in the
period ended October 31, 1994 and for the period March 1, 1991 (commencement of
operations) to October 31, 1991. 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 April
30, 1995, 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 Short Term Global Income Fund as of April 30, 1995, 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 October 31, 1994,
and the financial highlights for the six month period ended April 30,1995, for
each of the three years in the period ended October 31, 1994 and for the period
March 1, 1991 (commencement of operations) to October 31, 1991 in conformity
with generally accepted accounting principles.
Boston, Massachusetts COOPERS & LYBRAND L.L.P.
June 21, 1995
25
<PAGE>
INVESTMENT PRODUCTS AND SERVICES
<TABLE>
<CAPTION>
The Scudder Family of Funds
<C> <C>
Money Market Income
Scudder Cash Investment Trust Scudder Emerging Markets Income Fund
Scudder U.S. Treasury Money Fund Scudder GNMA Fund
Tax Free Money Market+ Scudder Income Fund
Scudder Tax Free Money Fund Scudder International Bond Fund
Scudder California Tax Free Money Fund* Scudder Short Term Bond Fund
Scudder New York Tax Free Money Fund* Scudder Short Term Global Income Fund
Tax Free+ Scudder Zero Coupon 2000 Fund
Scudder California Tax Free Fund* Growth
Scudder High Yield Tax Free Fund Scudder Capital Growth Fund
Scudder Limited Term Tax Free Fund Scudder Development Fund
Scudder Managed Municipal Bonds Scudder Global Fund
Scudder Massachusetts Limited Term Tax Free Fund* Scudder Global Small Company Fund
Scudder Massachusetts Tax Free Fund* Scudder Gold Fund
Scudder Medium Term Tax Free Fund Scudder Greater Europe Growth Fund
Scudder New York Tax Free Fund* Scudder International Fund
Scudder Ohio Tax Free Fund* Scudder Latin America Fund
Scudder Pennsylvania Tax Free Fund* Scudder Pacific Opportunities Fund
Growth and Income Scudder Quality Growth Fund
Scudder Balanced Fund Scudder Value Fund
Scudder Growth and Income Fund The Japan Fund
Retirement Plans and Tax-Advantaged Investments
IRAs 403(b) Plans
Keogh Plans SEP-IRAs
Scudder Horizon Plan+++* (a variable annuity) Profit Sharing and Money Purchase
401(k) Plans Pension Plans
Closed-End Funds#
The Argentina Fund, Inc. The Latin America Dollar Income Fund, Inc.
The Brazil Fund, Inc. Montgomery Street Income Securities, Inc.
The First Iberian Fund, Inc. Scudder New Asia Fund, Inc.
The Korea 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)++
</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. +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.
26
<PAGE>
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 New York
Boston Portland, OR
Chicago San Diego
Cincinnati San Francisco
Los Angeles Scottsdale
For information on Scudder For information on Scudder
Treasurers Trust, (tm) an Institutional Funds,* funds
institutional cash designed to meet the broad
management service for investment management and
corporations, non-profit service needs of banks and
organizations and trusts that other institutions, call
uses certain portfolios of 1-800-854-8525.
Scudder Fund, Inc.* ($100,000
minimum), call 1-800-541-7703.
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.
27
<PAGE>
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 loadO 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 us 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 long-standing
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.
