Scudder International Bond Fund
Supplement to Prospectus
dated November 1, 1994
The following text replaces the section entitled "Shareholder benefits--A
team approach to investing."
Scudder International Bond Fund is managed by a team of Scudder investment
professionals who each play an important role in the Fund's management
process. Team members work together to develop investment strategies and
select securities for the Fund's portfolio. They are supported by Scudder's
large staff of economists, research analysts, traders and other investment
specialists who work in Scudder's offices across the United States and
abroad. Scudder believes its team approach benefits Fund investors by
bringing together many disciplines and leveraging Scudder's extensive
resources.
Lead Portfolio Manager Adam M. Greshin assumed responsibility for the
Fund's day-to-day management and investment strategies in March 1995. Mr.
Greshin, who specializes in global and international bond investments, was
involved in the original design of Scudder International Bond Fund and has
been a portfolio manager of the Fund since its inception in 1988. Portfolio
Manager Margaret D. Hadzima is Chairman of Scudder's Global Bond Strategy
Committee and Director of Global Bond Research. Ms. Hadzima, who joined
Scudder in 1973 and the team in 1995, will play an active role in setting
the Fund's overall bond strategy. Margaret R. Craddock, Portfolio Manager,
has seven years of experience in global fixed-income research and
investing. Ms. Craddock, who joined Scudder in 1991 and the team in 1995,
will be involved in both managing the Fund and setting investment
strategies.
March 27, 1995
<PAGE>
March 27, 1995
Dear Scudder Investor,
The prospectus supplement on the reverse side is to inform you that
Lawrence Teitelbaum, formerly the Lead Portfolio Manager of Scudder
International Bond Fund, has left Scudder, Stevens & Clark, Inc. We thank
Mr. Teitelbaum for his contributions to the Fund and wish him well.
We welcome Adam M. Greshin as the new Lead Portfolio Manager of
Scudder International Bond Fund as well as Margaret D. Hadzima and Margaret
R. Craddock as Portfolio Managers. Mr. Greshin has been a member of the
Scudder International Bond Fund portfolio management team since the Fund's
inception in July 1988. Ms. Hadzima has been a member of Scudder's Global
Bond Group since joining Scudder in 1973. Ms. Craddock, also a member of
the Global Bond Group, joined Scudder in 1991. We are confident that Mr.
Greshin, Ms. Hadzima and Ms. Craddock will continue to build successfully
on the momentum that has been set in place.
In addition, for tax planning purposes, we are taking this opportunity
to inform you that we expect a substantial portion of the Fund's
distributions from January 1995 through June 1995 to be treated as a
nontaxable return of capital distribution. According to IRS rules, any
currency losses sustained on Fund positions will be treated as offsets to
income and cause distributions paid to be designated as nontaxable. We will
provide you with additional information about the nontaxable distributions
when we send your Form 1099-DIV in late January 1996. (Note: this does not
pertain to retirement accounts.)
If you have any questions, please call us at 1-800-225-2470, between 8
a.m. and 6 p.m. eastern time, Monday through Friday. We will be happy to
assist you.
Sincerely,
/s/David S. Lee
David S. Lee
President, Scudder Investor Services, Inc.
This letter is for explanatory purposes and is not part of the prospectus
supplement on the reverse side.
(over please)
<PAGE>
This prospectus sets forth concisely the information about Scudder
International Bond Fund, a series of Scudder Global Fund, Inc., an open-end
management investment company, that a prospective investor should know
before investing. Please retain it for future reference.
If you require more detailed information, a combined Statement of
Additional Information dated November 1, 1994, as amended from time to
time, may be obtained without charge by writing Scudder Investor Services,
Inc., Two International Place, Boston, MA 02110-4103 or calling
1-800-225-2470. The Statement, which is incorporated by reference into this
prospectus, has been filed with the Securities and Exchange Commission.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
Contents--see page 4.
Scudder International Bond Fund
Prospectus
November 1, 1994
A pure no-load(tm) (no sales charges) mutual fund series which seeks income
primarily by investing in high-grade bonds denominated in foreign
currencies. As a secondary objective, the Fund seeks protection and
possible enhancement of principal value by actively managing currency, bond
market and maturity exposure and by security selection.
Expense information
How to compare a Scudder pure no-load(tm) fund
This information is designed to help you understand the various costs and
expenses of investing in Scudder International Bond Fund (the "Fund"). By
reviewing this table and those in other mutual funds' prospectuses, you can
compare the Fund's fees and expenses with those of other funds. With
Scudder's pure no-load(tm) funds, you pay no commissions to purchase or
redeem shares, or to exchange from one fund to another. As a result, all of
your investment goes to work for you.
1) Shareholder transaction expenses: Expenses charged directly to your
individual account in the Fund for various transactions.
Sales commissions to purchase shares (sales load) NONE
Commissions to reinvest dividends NONE
Redemption fees NONE*
Fees to exchange shares NONE
2) Annual Fund operating expenses: Expenses paid by the Fund before it
distributes its net investment income, expressed as a percentage of
the Fund's average daily net assets for the fiscal year ended June 30,
1994.
Investment management fee 0.84%**
12b-1 fees NONE
Other expenses 0.44%
------
Total Fund operating expenses 1.28%**
======
Example
Based on the level of total Fund operating expenses listed above, the total
expenses relating to a $1,000 investment, assuming a 5% annual return and
redemption at the end of each period, are listed below. Investors do not
pay these expenses directly; they are paid by the Fund before it
distributes its net investment income to shareholders. (As noted above, the
Fund has no redemption fees of any kind.)
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$13 $41 $70 $155
See "Fund organization--Investment adviser" for further information about
the investment management fee. This example assumes reinvestment of all
dividends and distributions and that the percentage amounts listed under
"Annual Fund operating expenses" remain the same each year. This example
should not be considered a representation of past or future expenses or
return. Actual Fund expenses and return vary from year to year and may be
higher or lower than those shown.
* You may redeem by writing or calling the Fund. If you wish to receive
your redemption proceeds via wire, there is a $5 wire service fee. For
additional information, please refer to "Transaction
information--Redeeming shares."
** These fees have been restated to reflect the fees which would have
been payable for the fiscal year ended June 30, 1994 under the
Investment Management Agreement dated September 8, 1994. If the
Adviser had not agreed to maintain the Fund's total annualized
expenses at not more than 1.25% of average daily net assets from July
1, 1993 to January 1, 1994, the total annualized expenses would have
been 1.29% (of which 0.85% would have consisted of investment
management fees) for the year ended June 30, 1994.
Financial highlights
The following table includes selected data for a share outstanding
throughout each period and other performance information derived from the
audited financial statements.
If you would like more detailed information concerning the Fund's
performance, a complete portfolio listing and audited financial statements
are available in the Fund's Annual Report dated June 30, 1994 and may be
obtained without charge by writing or calling Scudder Investor Services,
Inc.
<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 6, 1988
(COMMENCEMENT
YEARS ENDED JUNE 30, OF OPERATIONS) TO
------------------------------------------------ JUNE 30,
1994(b) 1993 1992 1991 1990 1989
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . $13.57 $13.68 $12.35 $12.08 $11.27 $12.00
------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income (a) . . . . . . .92 1.03 1.08 1.21 1.10 1.00
Net realized and unrealized gain (loss)
on investment transactions (c) . . . (1.22) .52 2.15 .56 .80 (.73)
------ ------ ------ ------ ------ ------
Total from investment operations . . . (.30) 1.55 3.23 1.77 1.90 .27
------ ------ ------ ------ ------ ------
Less distributions:
From net investment income . . . . . (.91) (1.04) (1.09) (1.21) (1.09) (1.00)
From net realized gains on investment
transactions . . . . . . . . . . . . -- (.62) (.81) (.29) -- --
In excess of net realized gains on
investment transactions . . . . . . (.39) -- -- -- -- --
------ ------ ------ ------ ------ ------
Total distributions . . . . . . . . . . (1.30) (1.66) (1.90) (1.50) (1.09) (1.00)
------ ------ ------ ------ ------ ------
Net asset value, end of period . . . . $11.97 $13.57 $13.68 $12.35 $12.08 $11.27
====== ====== ====== ====== ====== ======
TOTAL RETURN (%) . . . . . . . . . . . (2.83) 12.24 28.25 14.88 17.59 2.16**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period ($ millions). 1,231 1,017 542 144 73 13
Ratio of operating expenses, net to
average net assets (%) (a) . . . . . 1.27 1.25 1.25 1.25 1.25 1.00*
Ratio of net investment income to average
net assets (%) . . . . . . . . . . . 6.86 7.69 8.31 9.48 9.57 8.58*
Portfolio turnover rate (%) . . . . . . 232.9 249.7 147.9 260.1 215.6 103.8*
(a) Reflects a per share amount of
expenses, exclusive of management
fees, reimbursed by the Adviser of. -- -- -- -- -- $.39
Reflects a per share amount of
management fee not imposed by the
Adviser of . . . . . . . . . . . . -- $.02 $.04 $.06 $.10 $.10
Operating expense ratio including
expenses reimbursed, management
fee and other expenses not
imposed (%) . . . . . . . . . . . 1.29 1.37 1.57 1.75 2.51 5.59*
<FN>
(b) Per share amounts have been calculated using weighted average shares outstanding.
(c) Includes exchange gain (loss) of $.01, $.01 and ($.02) for the periods ended June 30, 1991, 1990
and 1989, previously included in net investment income.
* Annualized
** Not annualized
</TABLE>
A message from Scudder's chairman
Scudder, Stevens & Clark, Inc., investment adviser to the Scudder Family of
Funds, was founded in 1919. We offered America's first no-load mutual fund
in 1928. Today, we manage in excess of $90 billion for many private
accounts and over 50 mutual fund portfolios. We manage the mutual funds in
a special program for the American Association of Retired Persons, as well
as the fund options available through Scudder Horizon Plan, a
tax-advantaged variable annuity. We also advise The Japan Fund and nine
closed-end funds that invest in countries around the world.
The Scudder Family of Funds is designed to make investing easy and less
costly. It includes money market, tax free, income and growth funds as well
as IRAs, 401(k)s, Keoghs and other retirement plans.
Services available to all shareholders include toll-free access to
professional service representatives at Scudder Service Corporation and the
Scudder Investor Information department, easy exchange among funds,
shareholder reports, informative newsletters and the walk-in convenience of
Scudder Funds Centers.
All Scudder mutual funds are pure no-load(tm). This means you pay no
commissions to purchase or redeem your shares or to exchange from one fund
to another. There are no "12b-1" fees either, which many other funds now
charge to support their marketing efforts. All of your investment goes to
work for you. We look forward to welcoming you as a shareholder.
/s/Daniel Pierce
Scudder International Bond Fund
Investment objectives
* income primarily by investing in high-grade bonds denominated in
foreign currencies
* protection and possible enhancement of principal value by actively
managing currency, bond market and maturity exposure and by security
selection
Investment characteristics
* easy access to worldwide interest rate and currency cycles through a
portfolio of debt securities denominated in foreign currencies
* convenient vehicle for investors seeking income from non-U.S.
dollar-denominated bonds
Contents
Investment objectives and policies 5
International bond investing 5
Why invest in the Fund? 6
International investment experience 6
Special risk considerations 6
Investments 7
Additional information about policies and 8
investments
Purchases 12
Exchanges and redemptions 13
Distribution and performance information 14
Fund organization 15
Transaction information 15
Shareholder benefits 18
Directors and Officers 21
Investment products and services 22
How to contact Scudder 23
Investment objectives and policies
Scudder International Bond Fund (the "Fund"), a series of Scudder Global
Fund, Inc., is a pure no-load(tm), non-diversified mutual fund which offers
investors a convenient way to invest in a managed portfolio of debt
securities denominated in foreign currencies. (In this prospectus, such
securities are called "international" securities.) The Fund's objective is
to provide income primarily by investing in a managed portfolio of
high-grade international bonds. As a secondary objective, the Fund seeks
protection and possible enhancement of principal value by actively managing
currency, bond market and maturity exposure and by security selection.
Except as otherwise indicated, the Fund's investment objectives and
policies are not fundamental and may be changed without a vote of
shareholders. Shareholders will receive written notice of any changes in
the Fund's objectives. If there is a change in investment objectives,
shareholders should consider whether the Fund remains an appropriate
investment in light of their then current financial position and needs.
There can be no assurance that the Fund's objectives will be met.
International bond investing
Opening of foreign markets
In recent years, opportunities for investment in international bond markets
have become more significant. Foreign currency denominated bond markets
have grown faster than the U.S. dollar-denominated bond market in terms of
U.S. dollar market value and now represent more than half of the value of
the world's developed bond markets. Participants in the markets have grown
in number thereby providing better liquidity. Finally, a number of
international bond markets have reduced barriers to entry to foreign
investors by deregulation and by reducing their withholding taxes.
Globalization of capital flows
Simultaneous with the opening of foreign markets, barriers to international
capital flows have been reduced or eliminated, freeing investment funds to
seek the highest expected returns. Thus, market conditions in one economy
influence market conditions elsewhere, through the channel of global
capital flows. The Fund provides a convenient vehicle to participate in
international bond markets, some of which may outperform U.S.
dollar-denominated bond markets in U.S. dollar terms during certain periods
of time.
International participation
Although the Fund is non-diversified under the Investment Company Act of
1940 (the "1940 Act"), investing in the Fund can provide international
diversity to an investor's existing portfolio of U.S. dollar-denominated
bonds ("U.S. bonds"), thereby reducing volatility or risk over time.
Historically, returns of international bond markets have often diverged
from returns generated by U.S. bond markets. These divergences stem not
only from fluctuating exchange rates, but also from foreign interest rates
not always moving in the same direction or having the same magnitude as
interest rates in the U.S. Investment in the Fund may provide the
international bond portion of an investor's diversification program.
Investment opportunity
International bonds may provide, at times, higher investment returns than
U.S. bonds. For example, international bonds may provide higher current
income than U.S. bonds and/or the local price of international bonds can
appreciate more than U.S. bonds. Fluctuations in foreign currencies
relative to the U.S. dollar can potentially benefit investment returns. Of
course, in each case, at any time the opposite may also be true.
Why invest in the Fund?
The Fund provides an easy, efficient and relatively low cost way of
investing in international bonds. Direct investment in international
securities is usually impractical for most individual and smaller
institutional investors. Investors often find it difficult to purchase and
sell international bonds, to obtain current information about foreign
entities, to hold securities in safekeeping and to convert the value of
their investment from foreign currencies into U.S. dollars. The Fund
manages these concerns for the investor. With a single investment in the
Fund, a shareholder can benefit from the income and potential capital
protection and appreciation associated with a professionally managed
portfolio of high-grade international bonds. The Fund's investment adviser,
Scudder, Stevens & Clark, Inc. (the "Adviser"), has had extensive
experience investing in international markets and dealing with trading,
custody and currency transactions around the world.
In addition, the Fund offers all the benefits of the Scudder Family of
Funds. Scudder, Stevens & Clark, Inc. manages a diverse family of pure
no-load(tm) funds and provides a wide range of services to help investors
meet their investment needs. Please refer to "Investment products and
services" for additional information.
International investment experience
The Adviser has been a leader in international investment management for
over 40 years. Its investment company clients include Scudder International
Fund, which invests primarily in foreign securities and was initially
incorporated in Canada in 1953 as the first foreign investment company
registered with the United States Securities and Exchange Commission,
Scudder Global Fund, Scudder Global Small Company Fund and Scudder Short
Term Global Income Fund, which invest worldwide, Scudder Greater Europe
Growth Fund, which invests primarily in the equity securities of European
companies, The Japan Fund, Inc., which invests primarily in securities of
Japanese companies, Scudder Latin America Fund, which invests in Latin
American issuers, and Scudder Pacific Opportunities Fund, which invests in
issuers located in the Pacific Basin, with the exception of Japan. The
Adviser also manages the assets of eight closed-end investment companies
investing in foreign securities: The Argentina Fund, Inc., The Brazil Fund,
Inc., The First Iberian Fund, Inc., The Korea Fund, Inc., The Latin America
Dollar Income Fund, Inc., Scudder New Asia Fund, Inc., Scudder New Europe
Fund, Inc., and Scudder World Income Opportunities Fund, Inc. Assets of
international investment company clients of the Adviser exceeded $9 billion
as of September 30, 1994.
Special risk considerations
The Fund is intended for long-term investors who can accept the risks
associated with investing in international bonds. Total return from
investment in the Fund will consist of income after expenses, bond price
gains (or losses) in terms of the local currency and currency gains (or
losses). For tax purposes, realized gains and losses on currency are
regarded as ordinary income and loss and could, under certain
circumstances, have an impact on distributions. The value of the Fund's
portfolio will fluctuate in response to various economic factors, the most
important of which are fluctuations in foreign currency exchange rates and
interest rates.
Since the Fund's investments are primarily denominated in foreign
currencies, exchange rates are likely to have a significant impact on total
Fund performance. For example, a fall in the U.S. dollar's value relative
to the Japanese yen will increase the U.S. dollar value of a Japanese bond
held in the portfolio, even though the price of that bond in yen terms
remains unchanged. Conversely, if the U.S. dollar rises in value relative
to the yen, the U.S. dollar value of a Japanese bond will fall. Investors
should be aware that exchange rate movements can be significant and endure
for long periods of time.
The Adviser attempts to control exchange rate and interest rate risks
through active portfolio management. The Adviser's techniques include
management of currency, bond market and maturity exposure and security
selection which will vary based on available yields and the Adviser's
outlook for the interest rate cycle in various countries and changes in
foreign currency exchange rates. In any of the markets in which the Fund
invests, longer maturity bonds tend to fluctuate more in price as interest
rates change than shorter-term instruments--again providing both opportunity
and risk.
Because of the Fund's long-term investment objectives, investors should not
rely on an investment in the Fund for their short-term financial needs and
should not view the Fund as a vehicle for playing short-term swings in the
international bond and foreign exchange markets. Shares of the Fund alone
should not be regarded as a complete investment program. Also, investors
should be aware that investing in international bonds may involve a higher
degree of risk than investing in U.S. bonds.
Investments in foreign securities involve special considerations due to
more limited information, higher brokerage costs, different accounting
standards, thinner trading markets and the likely impact of foreign taxes
on the yield from debt securities. They may also entail certain risks, such
as the possibility of one or more of the following: imposition of dividend
or interest withholding or confiscatory taxes, currency blockages or
transfer restrictions, expropriation, nationalization or other adverse
political or economic developments, less government supervision and
regulation of securities exchanges, brokers and listed companies, and the
difficulty of enforcing obligations in other countries. Purchases of
foreign securities are usually made in foreign currencies and, as a result,
the Fund may incur currency conversion costs and may be affected favorably
or unfavorably by changes in the value of foreign currencies against the
U.S. dollar. Further, it may be more difficult for the Fund's agents to
keep currently informed about corporate actions which may affect the prices
of portfolio securities. Communications between the U.S. and foreign
countries may be less reliable than within the U.S., thus increasing the
risk of delayed settlements of portfolio transactions or loss of
certificates for portfolio securities. The Fund's ability and decisions to
purchase and sell portfolio securities may be affected by laws or
regulations relating to the convertibility and repatriation of assets.
Please see "Additional information about policies and investments--
Risk factors."
Investments
To achieve its objectives, the Fund will primarily invest in a managed
portfolio of high-grade international bonds that are denominated in foreign
currencies, including bonds denominated in the European Currency Unit
(ECU). Portfolio investments will be selected on the basis of, among other
things, yields, credit quality, and the fundamental outlooks for currency
and interest rate trends in different parts of the globe, taking into
account the ability to hedge a degree of currency or local bond price risk.
The Fund will normally invest at least 65% of its total assets in bonds
denominated in foreign currencies.
The high-grade debt securities in which the Fund primarily invests will be
rated in one of the three highest rating categories of one of the major
U.S. rating services or, if not rated, considered to be of equivalent
quality in local currency terms by the Adviser. These securities are rated
AAA, AA or A by Standard & Poor's ("S&P") or Aaa, Aa, or A by Moody's
Investors Service, Inc. ("Moody's").
The Fund may also purchase debt securities rated BBB, BB or B by S&P or
Baa, Ba or B by Moody's and unrated securities considered to be of
equivalent quality by the Adviser. The Fund will do so to avail itself of
the higher yields available with these securities, but only to the extent
that up to 15% of the Fund's total assets may be invested in securities
rated below BBB by S&P or below Baa by Moody's. Securities rated below
investment-grade (i.e., below BBB by S&P or below Baa by Moody's) entail
greater risks than investment-grade debt securities (see "Risk factors").
During the year ended June 30, 1994, the average monthly dollar-weighted
market value of the bonds in the Fund's portfolio were as follows: 35.2%
rated Aaa, 45.1% Aa, 11.0% A, 2.1% Baa, 4.0% Ba and 2.6% B. The Bonds are
rated by Moody's or S&P, or of equivalent quality as determined by the
Adviser.
The Fund's investments may include:
* Debt securities issued or guaranteed by a foreign national government,
its agencies, instrumentalities or political subdivisions
* Debt securities issued or guaranteed by supranational organizations
(e.g., European Investment Bank, Inter-American Development Bank or
the World Bank)
* Corporate debt securities
* Bank or bank holding company debt securities
* Other debt securities, including those convertible into common stock
The Fund may invest in zero coupon securities which pay no cash income and
are issued at substantial discounts from their value at maturity. When held
to maturity, their entire income, which consists of accretion of discount,
comes from the difference between the issue price and their value at
maturity.
The Fund may purchase securities which are not publicly offered. If such
securities are purchased, they may be subject to restrictions applicable to
restricted securities. Please see "Additional information about policies
and investments--Investment restrictions."
The Fund intends to select its investments from a number of country and
market sectors. It may substantially invest in the issuers of one or more
countries and intends to have investments in securities of issuers from a
minimum of three different countries; however, the Fund may invest
substantially all of its assets in securities of issuers located in one
country. Under normal circumstances, the Fund will invest no more than 35%
of the value of its total assets in U.S. debt securities.
For temporary defensive or emergency purposes, however, the Fund may invest
without limit in U.S. debt securities, including short-term money market
securities. It is impossible to predict for how long such alternative
strategies will be utilized. In addition, the Fund may engage in strategic
transactions.
Additional information about policies and investments
Investment restrictions
The Fund has adopted certain fundamental policies which may not be changed
without a vote of shareholders and which are designed to reduce the fund's
investment risk.
The Fund may not borrow money except as a temporary measure for
extraordinary or emergency purposes or except in connection with reverse
repurchase agreements, and may not make loans except through the lending of
portfolio securities, the purchase of debt securities or through repurchase
agreements.
In addition, as a matter of nonfundamental policy, the Fund may not invest
more than 10% of its net assets, in the aggregate, in securities which are
not readily marketable, in restricted securities and repurchase agreements
maturing in more than seven days. The Fund may not invest more than 5% of
its total assets in restricted securities. A complete description of these
and other policies and restrictions is contained under "Investment
Restrictions" in the Fund's combined Statement of Additional Information.
Short-term investments
To protect against adverse movements of interest rates and for liquidity,
the Fund may also purchase short-term obligations denominated in U.S. and
foreign currencies such as, but not limited to, bank deposits, bankers'
acceptances, certificates of deposit, commercial paper, short-term
government, government agency, supranational agency and corporate
obligations, and repurchase agreements.
Indexed securities
The Fund may invest in indexed securities, the value of which is linked to
currencies, interest rates, commodities, indices or other financial
indicators ("reference instruments"). The interest rate or (unlike most
fixed-income securities) the principal amount payable at maturity of an
indexed security may be increased or decreased, depending on changes in the
value of the reference instrument. Indexed securities may be positively or
negatively indexed, so that appreciation of the reference instrument may
produce an increase or a decrease in the interest rate or value at maturity
of the security. In addition, the change in the interest rate or value at
maturity of the security may be some multiple of the change in the value of
the reference instrument. Thus, in addition to the credit risk of the
security's issuer, the Fund will bear the market risk of the reference
instrument.
Repurchase agreements
As a means of earning income for periods as short as overnight, the Fund
may enter into repurchase agreements with selected banks and
broker/dealers. Under a repurchase agreement, the Fund acquires securities,
subject to the seller's agreement to repurchase them at a specified time
and price. The Fund may also enter into repurchase commitments for
investment purposes for periods of 30 days or more. Such commitments
involve investment risk similar to that of debt securities in which the
Fund invests.
Dollar roll transactions
The Fund may enter into dollar roll transactions with selected banks and
broker/dealers. Dollar roll transactions are treated as reverse repurchase
agreements for purposes of the Fund's borrowing restrictions and consist of
the sale by the Fund of mortgage-backed securities together with a
commitment to purchase similar, but not identical, securities at a future
date, at the same price. In addition, the Fund is paid a fee as
consideration for entering into the commitment to purchase. Dollar rolls
may be renewed after cash settlement and initially may involve only a firm
commitment agreement by the Fund to buy securities.
When-issued securities
The Fund may purchase securities on a when-issued or forward delivery
basis, for payment and delivery at a later date. The price and yield are
generally fixed on the date of commitment to purchase. During the period
between purchase and settlement, no interest accrues to the Fund. At the
time of settlement, the market value of the security may be more or less
than the purchase price.
Strategic Transactions and derivatives
The Fund may, but is not required to, utilize various other investment
strategies as described below to hedge various market risks (such as
interest rates, currency exchange rates, and broad or specific equity or
fixed-income market movements), to manage the effective maturity or
duration of fixed-income securities in the Fund's portfolio or to enhance
potential gain. These strategies may include the use of derivative
contracts. Such strategies are generally accepted as modern portfolio
management and are regularly utilized by many mutual funds and other
institutional investors. Techniques and instruments may change over time as
new instruments and strategies are developed or regulatory changes occur.
In the course of pursuing these investment strategies, the Fund may
purchase and sell exchange-listed and over-the-counter put and call options
on securities, equity and fixed-income indices and other financial
instruments, purchase and sell financial futures contracts and options
thereon, enter into various interest rate transactions such as swaps, caps,
floors or collars, and enter into various currency transactions such as
currency forward contracts, currency futures contracts, currency swaps or
options on currencies or currency futures (collectively, all the above are
called "Strategic Transactions").
Strategic Transactions may be used without limit to attempt to protect
against possible changes in the market value of securities held in or to be
purchased for the Fund's portfolio resulting from securities markets or
currency exchange rate fluctuations, to protect the Fund's unrealized gains
in the value of its portfolio securities, to facilitate the sale of such
securities for investment purposes, to manage the effective maturity or
duration of fixed-income securities in the Fund's portfolio, or to
establish a position in the derivatives markets as a temporary substitute
for purchasing or selling particular securities. Some Strategic
Transactions may also be used to enhance potential gain although no more
than 5% of the Fund's assets will be committed to Strategic Transactions
entered into for non-hedging purposes. Any or all of these investment
techniques may be used at any time and in any combination, and there is no
particular strategy that dictates the use of one technique rather than
another, as use of any Strategic Transaction is a function of numerous
variables including market conditions. The ability of the Fund to utilize
these Strategic Transactions successfully will depend on the Adviser's
ability to predict pertinent market movements, which cannot be assured. The
Fund will comply with applicable regulatory requirements when implementing
these strategies, techniques and instruments. Strategic Transactions
involving financial futures and options thereon will be purchased, sold or
entered into only for bona fide hedging, risk management or portfolio
management purposes and not for speculative purposes. Please refer to "Risk
factors--Strategic Transactions and derivatives" for more information.
Risk factors
The Fund's risks are determined by the nature of the securities held and
the portfolio management strategies used by the Adviser. The following are
descriptions of certain risks related to the investments and techniques
that the Fund may use from time to time.
Bonds. The Fund will invest no more than 15% of its total assets in debt
securities rated below BBB or Baa, but no lower than B by S&P or Moody's.
Securities rated below investment-grade are commonly referred to as "junk
bonds" and involve greater price volatility and higher degrees of
speculation with respect to the payment of principal and interest than
higher quality fixed-income securities. The market prices of such
lower-rated debt securities may decline significantly in periods of general
economic difficulty. In addition, the trading market for these securities
is generally less liquid than for higher rated securities and the Fund may
have difficulty disposing of these securities at the time it wishes to do
so. The lack of a liquid secondary market for certain securities may also
make it more difficult for the Fund to obtain accurate market quotations
for purposes of valuing its portfolio and calculating its net asset value.
Non-diversified investment company. As a non-diversified investment
company, the Fund may invest a greater proportion of its assets in the
securities of a smaller number of issuers and therefore may be subject to
greater market and credit risk than a more broadly diversified portfolio.
Repurchase agreements. If the seller under a repurchase agreement becomes
insolvent, the Fund's right to dispose of the securities may be restricted.
In the event of the commencement of bankruptcy or insolvency proceedings of
the sellers of the securities before repurchase of the securities under a
repurchase agreement, the Fund may encounter delay and incur costs before
being able to sell the securities. Also, the value of such securities may
decline before the Fund is able to dispose of them.
Dollar roll transactions. If the broker/dealer to whom the Fund sells the
security becomes insolvent, the Fund's right to purchase or repurchase the
security may be restricted; the value of the security may change adversely
over the term of the dollar roll; the security which the Fund is required
to repurchase may be worth less than a security which the Fund originally
held, and the return earned by the Fund with the proceeds of a dollar roll
may not exceed transaction costs.
Zero coupon securities. Zero coupon securities are subject to greater
market value fluctuations from changing interest rates than debt
obligations of comparable maturities which make current cash distributions
of interest.
Strategic Transactions and derivatives. Strategic Transactions, including
derivative contracts, have risks associated with them including possible
default by the other party to the transaction, illiquidity and, to the
extent the Adviser's view as to certain market movements is incorrect, the
risk that the use of such Strategic Transactions could result in losses
greater than if they had not been used. Use of put and call options may
result in losses to the Fund, force the sale or purchase of portfolio
securities at inopportune times or for prices higher than (in the case of
put options) or lower than (in the case of call options) current market
values, limit the amount of appreciation the Fund can realize on its
investments or cause the Fund to hold a security it might otherwise sell.
The use of currency transactions can result in the Fund incurring losses as
a result of a number of factors including the imposition of exchange
controls, suspension of settlements or the inability to deliver or receive
a specified currency. The use of options and futures transactions entails
certain other risks. In particular, the variable degree of correlation
between price movements of futures contracts and price movements in the
related portfolio position of the Fund creates the possibility that losses
on the hedging instrument may be greater than gains in the value of the
Fund's position. In addition, futures and options markets may not be liquid
in all circumstances and certain over-the-counter options may have no
markets. As a result, in certain markets, the Fund might not be able to
close out a transaction without incurring substantial losses, if at all.
Although the use of futures contracts and options transactions for hedging
should tend to minimize the risk of loss due to a decline in the value of
the hedged position, at the same time they tend to limit any potential gain
which might result from an increase in value of such position. Finally, the
daily variation margin requirements for futures contracts would create a
greater ongoing potential financial risk than would purchases of options,
where the exposure is limited to the cost of the initial premium. Losses
resulting from the use of Strategic Transactions would reduce net asset
value, and possibly income, and such losses can be greater than if the
Strategic Transactions had not been utilized. The Strategic Transactions
that the Fund may use and some of their risks are described more fully in
the Fund's combined Statement of Additional Information.
Purchases
Opening an account
Minimum initial investment: $1,000; IRAs $500
Group retirement plans (401(k), 403(b), etc.) have similar or lower
minimums. See appropriate plan literature.
Make checks payable to "The Scudder Funds."
* By Mail
Send your completed and signed application and check
by regular mail to: or by express,
registered,
or certified mail to:
The Scudder Funds The Scudder Funds
P.O. Box 2291 1099 Hingham Street
Boston, MA Rockland, MA
02107-2291 02370-1052
* By Wire
Please see Transaction information--Purchasing shares--By wire following
these tables for details, including the ABA wire transfer number. Then
call 1-800-225-5163 for instructions.
* In Person
Visit one of our Funds Centers to complete your application with the
help of a Scudder representative. Funds Center locations are listed
under Shareholder benefits.
Purchasing additional shares
Minimum additional investment: $100; IRAs $50
Group retirement plans (401(k), 403(b), etc.) have similar or lower
minimums. See appropriate plan literature.
Make checks payable to "The Scudder Funds."
* By Mail
Send a check with a Scudder investment slip, or with a letter of
instruction including your account number and the complete Fund name,
to the appropriate address listed above.
* By Wire
Please see Transaction information--Purchasing shares--By wire following
these tables for details, including the ABA wire transfer number.
* In Person
Visit one of our Funds Centers to make an additional investment in
your Scudder fund account. Funds Center locations are listed under
Shareholder benefits.
* By Automatic Investment Plan ($50 minimum)
You may arrange to make investments on a regular basis through
automatic deductions from your bank checking account. Please call
1-800-225-5163 for more information and an enrollment form.
Exchanges and redemptions
Exchanging shares
Minimum investments: $1,000 to establish a new account; $100 to exchange
among existing accounts
* By Telephone
To speak with a service representative, call 1-800-225-5163 from 8
a.m. to 6 p.m. eastern time or to access SAIL(tm), Scudder's Automated
Information Line, call 1-800-343-2890 (24 hours a day).
* By Mail or Fax
Print or type your instructions and include:
- the name of the Fund and the account number you are exchanging
from;
- your name(s) and address as they appear on your account;
- the dollar amount or number of shares you wish to exchange;
- the name of the Fund you are exchanging into; and
- your signature(s) as it appears on your account and a daytime
phone number.
Send your instructions
by regular mail to: or by express, or by fax to:
registered,or
certified mail to:
The Scudder Funds The Scudder Funds 1-800-821-6234
P.O. Box 2291 1099 Hingham Street
Boston, MA Rockland, MA
02107-2291 02370-1052
Redeeming shares
* By Telephone
To speak with a service representative, call 1-800-225-5163 from
8 a.m. to 6 p.m. eastern time or to access SAIL(tm), Scudder's
Automated Information Line, call 1-800-343-2890 (24 hours a day). You
may have redemption proceeds sent to your predesignated bank account,
or redemption proceeds of up to $50,000 sent to your address of
record.
* By Mail or Fax
Send your instructions for redemption to the appropriate address or
fax number above and include:
- the name of the Fund and account number you are redeeming from;
- your name(s) and address as they appear on your account;
- the dollar amount or number of shares you wish to redeem; and
- your signature(s) as it appears on your account and a daytime
phone number.
A signature guarantee is required for redemptions over $50,000. See
Transaction information--Redeeming shares following these tables.
* By Automatic Withdrawal Plan
You may arrange to receive automatic cash payments periodically if the
value of your account is $10,000 or more. Call 1-800-225-5163 for more
information and an enrollment form.
Distribution and performance information
Dividends and capital gains distributions
The Fund's dividends from ordinary income are declared daily and
distributed monthly. The Fund intends to distribute net realized capital
gains after utilization of capital loss carryforwards, if any, in November
or December, to prevent application of a federal excise tax, although an
additional distribution may be made within three months of the Fund's
fiscal year end, if necessary.
Any dividends or capital gains distributions declared in October, November
or December with a record date in such a month and paid during the
following January will be treated by shareholders for federal income tax
purposes as if received on December 31 of the calendar year declared.
According to preference, shareholders may receive distributions in cash or
have them reinvested in additional shares of the Fund. If an investment is
in the form of a retirement plan, all dividends and capital gains
distributions must be reinvested into an account.
Generally, dividends from net investment income are taxable to investors as
ordinary income. Certain realized gains or losses on the sale or retirement
of international bonds held by the Fund, to the extent attributable to
fluctuations in currency exchange rates, as well as certain other gains or
losses attributable to exchange rate fluctuations, must be treated as
ordinary income or loss. Such income or loss may increase or decrease (or
possibly eliminate) the Fund's income available for distribution to
shareholders. If, under the rules governing the tax treatment of foreign
currency gains and losses, the Fund's income available for distribution is
decreased or eliminated, all or a portion of the dividends declared by the
Fund may be treated for federal income tax purposes as a return of capital
or, in some circumstances, as capital gain. Generally, a shareholder's tax
basis in their Fund shares will be reduced to the extent that an amount
distributed to the shareholder is treated as a return of capital. The Fund
may reduce its daily dividend to lessen the effect of these rules. If the
Fund's income is increased under the foreign currency taxation rules, the
Fund intends to declare additional distributions of such income in December
and, if necessary, within three months after the Fund's fiscal year end of
June 30.
Long-term capital gains distributions, if any, are taxable as long-term
capital gains regardless of the length of time shareholders have owned
their shares. Short-term capital gains and any other taxable income
distributions are taxable as ordinary income.
The Fund sends detailed tax information about the amount and type of its
distributions to its shareholders by January 31 of the following year.
Performance information
From time to time quotations of the Fund's performance may be included in
advertisements, sales literature or shareholder reports. All performance
figures are historical, show the performance of a hypothetical investment
and are not intended to indicate future performance. The "yield" of the
Fund refers to income generated by an investment in the Fund over a
specified 30-day (one month) period. Yield is expressed as an annualized
percentage. "Total return" is the change in value of an investment in the
Fund for a specified period. The "average annual total return" of the Fund
is the average annual compound rate of return of an investment in the Fund
assuming that the investment has been held for one year and the life of the
Fund. "Cumulative total return" represents the cumulative change in value
of an investment in the Fund for various periods. Total return calculations
assume that all dividends and capital gains distributions during the period
were reinvested. "Capital change" measures return from capital, including
reinvestment of any capital gains distributions but does not include the
reinvestment of dividends. Performance will vary based upon, among other
things, changes in market conditions and the level of the Fund's expenses.
Fund organization
The Fund is a non-diversified series of Scudder Global Fund, Inc. (the
"Corporation"), an open-end, management investment company registered under
the 1940 Act. The Corporation was organized as a Maryland corporation in
May 1986.
The Fund's activities are supervised by the Corporation's Board of
Directors. Shareholders have one vote for each share held on matters on
which they are entitled to vote. The Fund is not required to and has no
current intention of holding annual shareholder meetings, although special
meetings may be called for purposes such as electing or removing Directors,
changing fundamental investment policies or approving an investment
management contract. Shareholders will be assisted in communicating with
other shareholders in connection with removing a Director as if Section
16(c) of the 1940 Act were applicable.
Investment adviser
The Fund retains the investment management firm of Scudder, Stevens &
Clark, Inc., a Delaware corporation, to manage the Fund's daily investment
and business affairs subject to the policies established by the Board of
Directors. The Directors have overall responsibility for the management of
the Fund under Maryland law.
The Adviser receives an investment management fee for its services equal,
on an annual basis, to 0.85% of the first $1 billion of average daily net
assets and 0.80% of such assets in excess of $1 billion. The fee is
graduated so that increases in the Fund's net assets may result in a lower
fee rate and decreases in the Fund's net assets may result in a higher fee
rate.
The fee is payable monthly, provided that the Fund will make such interim
payments as may be requested by the Adviser not to exceed 75% of the amount
of the fee then accrued on the books of the Fund and unpaid. This fee is
higher than that charged many funds which invest primarily in U.S.
securities, though it is not necessarily higher than the fees charged to
funds with similar investment objectives. However, management of the Fund
involves market, credit and currency relationships in a number of economies
throughout the world.
Because the Fund's annual portfolio turnover rate may continue to be over
100%, the Fund may have higher transaction costs and shareholders may incur
taxes on any realized capital gains.
All the Fund's expenses are paid out of gross investment income.
Shareholders pay no direct charges or fees for investment services.
Scudder, Stevens & Clark, Inc., is located at 345 Park Avenue, New York,
New York.
Transfer agent
Scudder Service Corporation, P.O. Box 2291, Boston, Massachusetts
02107-2291, a wholly-owned subsidiary of the Adviser is the transfer,
shareholder servicing and dividend-paying agent for the Fund.
Underwriter
Scudder Investor Services, Inc., a wholly-owned subsidiary of the Adviser,
is the Fund's principal underwriter. Scudder Investor Services, Inc.
confirms, as agent, all purchases of shares of the Fund. Scudder Investor
Information is a telephone information service provided by Scudder Investor
Services, Inc.
Transaction information
Purchasing shares
Purchases are executed at the next calculated net asset value per share
after the Fund's transfer agent in Boston receives the purchase request in
good order. Purchases are made in full and fractional shares. (See "Share
price.")
By check. If you purchase shares with a check that does not clear, your
purchase will be cancelled and you will be subject to any losses or fees
incurred in the transaction. Checks must be drawn on or payable through a
U.S. bank. If you purchase shares by check and redeem them within seven
business days of purchase, the Fund may hold redemption proceeds until the
purchase check has cleared, which may take up to seven business days. If
you purchase shares by federal funds wire, you may avoid this delay.
Redemption or exchange requests by telephone prior to the expiration of the
seven-day period will not be accepted.
By wire. To open a new account by wire, first call Scudder at
1-800-225-5163 to obtain an account number. A representative will instruct
you to send a completed, signed application to the transfer agent in
Boston. Accounts cannot be opened without a completed, signed application
and a Scudder fund account number. Contact your bank to arrange a wire
transfer to:
The Scudder Funds
State Street Bank and Trust Company
Boston, MA 02101
ABA Number 011000028
DDA Account 9903-5552
Your wire instructions must also include:
-- the name of the fund in which the money is to be invested,
-- the account number of the fund, and
-- the name(s) of the account holder(s).
The account will be established once the application and money order are
received in good order.
You may also make additional investments of $100 or more to your existing
account by wire.
By exchange. Your new account will have the same registration and address
as your existing account.
The exchange requirements for corporations, other organizations, trusts,
fiduciaries, agents, institutional investors and retirement plans may be
different from those for regular accounts. Please call 1-800-225-5163 for
more information, including information about the transfer of special
account features.
You can also make exchanges among your Scudder fund accounts on SAIL, the
Scudder Automated Information Line, by calling 1-800-343-2890.
Redeeming shares
The Fund allows you to redeem shares (i.e., sell them back to the Fund)
without redemption fees.
By telephone. This is the quickest and easiest way to sell Fund shares. If
you elected telephone redemption to your bank on your application, you can
call to request that federal funds be sent to your authorized bank account.
If you did not elect telephone redemption to your bank on your application,
call 1-800-225-5163 for more information.
Redemption proceeds will be wired to your bank unless otherwise requested.
If your bank cannot receive federal reserve wires, redemption proceeds will
be mailed to your bank. There will be a $5 charge for all wire redemptions.
You can also make redemptions from your Scudder fund account on SAIL, the
Scudder Automated Information Line, by calling 1-800-343-2890.
If you open an account by wire, you cannot redeem shares by telephone until
the Fund's transfer agent has received your completed and signed
application. Telephone redemption is not available for shares held in
Scudder IRA accounts and most other Scudder retirement plan accounts.
In the event that you are unable to reach the Fund by telephone, you should
write to the Fund; see "How to contact Scudder" for the address.
Signature guarantees. For your protection and to prevent fraudulent
redemptions, on written redemption requests in excess of $50,000 we require
an original signature and an original signature guarantee for each person
in whose name the account is registered. (The Fund reserves the right,
however, to require a signature guarantee for all redemptions.) You can
obtain a signature guarantee from most banks, credit unions or savings
associations, or from broker/dealers, municipal securities broker/dealers,
government securities broker/dealers, national securities exchanges,
registered securities associations or clearing agencies deemed eligible by
the Securities and Exchange Commission. Signature guarantees by notaries
public are not acceptable. Redemption requirements for corporations, other
organizations, trusts, fiduciaries, agents, institutional investors and
retirement plans may be different from those for regular accounts. For more
information, please call 1-800-225-5163.
Telephone transactions
Shareholders automatically receive the ability to exchange by telephone and
the right to redeem by telephone up to $50,000 to their address of record.
Shareholders also may, by telephone, request that redemption proceeds be
sent to a predesignated bank account. The Fund uses procedures designed to
give reasonable assurance that telephone instructions are genuine,
including recording telephone calls, testing a caller's identity and
sending written confirmation of telephone transactions. If the Fund does
not follow such procedures, it may be liable for losses due to unauthorized
or fraudulent telephone instructions. The Fund will not be liable for
acting upon instructions communicated by telephone that it reasonably
believes to be genuine.
Share price
Purchases and redemptions, including exchanges, are made at net asset
value. The Fund's custodian, Brown Brothers Harriman & Co., determines net
asset value per share as of the close of regular trading on the Exchange,
normally 4 p.m. eastern time, on each day the Exchange is open for trading.
Net asset value per share is calculated by dividing the value of total Fund
assets, less all liabilities, by the total number of shares outstanding.
Processing time
All purchase and redemption requests received in good order by the Fund's
transfer agent in Boston by the close of regular trading on the Exchange
are executed at the net asset value per share calculated at the close of
regular trading that day.
Purchase and redemption requests received after the close of regular
trading on the Exchange will be executed the following business day.
If you wish to make a purchase of $500,000 or more, you should notify
Scudder Service Corporation by calling 1-800-225-5163.
The Fund will normally send your redemption proceeds within one business
day following the redemption request, but may take up to seven days (or
longer in the case of shares recently purchased by check).
Short-term trading
Purchases and sales should be made for long-term investment purposes only.
The Fund and Scudder Investor Services, Inc. each reserves the right to
restrict purchases of Fund shares (including exchanges) when a pattern of
frequent purchases and sales made in response to short-term fluctuations in
the Fund's share price appears evident.
Tax information
A redemption of shares, including an exchange into another Scudder fund, is
a sale of shares and may result in a gain or loss for income tax purposes.
Tax identification number
Be sure to complete the Tax Identification Number section of the Fund's
application when you open an account. Federal tax law requires the Fund to
withhold 31% of taxable dividends, capital gains distributions and
redemption and exchange proceeds from accounts (other than those of certain
exempt payees) without a certified Social Security or tax identification
number and certain other certified information or upon notification from
the IRS or a broker that withholding is required. The Fund reserves the
right to reject new account applications without a certified Social
Security or tax identification number. The Fund also reserves the right,
following 30 days' notice, to redeem all shares in accounts without a
certified Social Security or tax identification number. A shareholder may
avoid involuntary redemption by providing the Fund with a tax
identification number during the 30-day notice period.
Minimum balances
Shareholders should maintain a share balance worth at least $1,000, which
amount may be changed by the Board of Directors. Scudder retirement plans
have similar or lower minimum share balance requirements. The Fund reserves
the right, following 60 days' written notice to shareholders, to redeem all
shares in sub-minimum accounts, including accounts of new investors, where
a reduction in value has occurred due to a redemption or exchange out of
the account. Reductions in value that result solely from market activity
will not trigger an involuntary redemption. The Fund will mail the proceeds
of the redeemed account to the shareholder. The shareholder may restore the
share balance to $1,000 or more during the 60-day notice period and must
maintain it at no lower than that minimum to avoid involuntary redemption.
Third party transactions
If purchases and redemptions of Fund shares are arranged and settlement is
made at an investor's election through a member of the National Association
of Securities Dealers, Inc., other than Scudder Investor Services, Inc.,
that member may, at its discretion, charge a fee for that service.
Redemption-in-kind
The Fund reserves the right, if conditions exist which make cash payments
undesirable, to honor any request for redemption or repurchase order by
making payment in whole or in part in readily marketable securities chosen
by the Fund and valued as they are for purposes of computing the Fund's net
asset value (a redemption-in-kind). If payment is made in securities, a
shareholder may incur transaction expenses in converting these securities
to cash. The Corporation has elected, however, to be governed by Rule 18f-1
under the 1940 Act, as a result of which the Fund is obligated to redeem
shares, with respect to any one shareholder during any 90-day period,
solely in cash up to the lesser of $250,000 or 1% of the net asset value of
the Fund at the beginning of the period.
Shareholder benefits
Experienced professional management
Scudder, Stevens & Clark, Inc., one of the nation's most experienced
investment management firms, actively manages your Scudder fund investment.
Professional management is an important advantage for investors who do not
have the time or expertise to invest directly in individual securities.
A team approach to investing
Scudder International Bond Fund is managed by a team of Scudder investment
professionals, who each play an important role in the Fund's management
process. Team members work together to develop investment strategies and
select securities for the Fund's portfolio. They are supported by Scudder's
large staff of economists, research analysts, traders, and other investment
specialists who work in Scudder's offices across the United States and
abroad. Scudder believes its team approach benefits Fund investors by
bringing together many disciplines and leveraging Scudder's extensive
resources.
Lead Portfolio Manager Lawrence Teitelbaum assumed responsibility for the
Fund's day-to-day management when he joined Scudder in 1993, bringing more
than 10 years of experience managing foreign and domestic fixed-income
assets. Adam M. Greshin, Portfolio Manager, joined Scudder in 1986. He has
responsibility for researching, analyzing, and selecting international
bonds for the Fund.
SAIL(tm)--Scudder Automated Information Line
For touchtone access to account information, prices and yields, or to
perform transactions in existing Scudder fund accounts, shareholders can
call Scudder's Automated Information Line (SAIL) at 1-800-343-2890. During
periods of extreme economic or market changes, or other conditions, it may
be difficult for you to effect telephone transactions in your account. In
such an event you should write to the Fund; please see "How to contact
Scudder" for the address.
Investment flexibility
Scudder offers toll-free telephone exchange between funds at current net
asset value. You can move your investments among money market, income, tax
free and growth funds with a simple toll-free call or, if you prefer, by
sending your instructions through the mail or by fax. Telephone and fax
redemptions and exchanges are subject to termination and their terms are
subject to change at any time by the Fund or the transfer agent. In some
cases, the transfer agent or Scudder Investor Services, Inc. may impose
additional conditions on telephone transactions.
Dividend reinvestment plan
You may have dividends and distributions automatically reinvested in
additional Fund shares. Please call 1-800-225-5163 to request this feature.
Shareholder statements
You receive a detailed account statement every time you purchase or redeem
shares. All of your statements should be retained to help you keep track of
account activity and the cost of shares for tax purposes.
Shareholder reports
In addition to account statements, you receive periodic shareholder reports
highlighting relevant information, including investment results and a
review of portfolio changes.
To reduce the volume of mail you receive, only one copy of most Fund
reports, such as the Fund's Annual Report, may be mailed to your household
(same surname, same address). Please call 1-800-225-5163 if you wish to
receive additional shareholder reports.
Newsletters
Four times a year, Scudder sends you At the Helm, an informative newsletter
covering economic and investment developments, service enhancements and
other topics of interest to Scudder fund investors.
Scudder Funds Centers
As a convenience to shareholders who like to conduct business in person,
Scudder Investor Services, Inc. maintains Funds Centers in Boca Raton,
Boston, Chicago, Cincinnati, Los Angeles, New York, Portland (OR), San
Diego, San Francisco and Scottsdale.
T.D.D. service for the hearing impaired
Scudder's full range of investor information and shareholder services is
available to hearing impaired investors through a toll-free T.D.D.
(Telephone Device for the Deaf) service. If you have access to a T.D.D.,
call 1-800-543-7916 for investment information or specific account
questions and transactions.
Scudder tax-advantaged retirement plans
Scudder offers a variety of tax-advantaged retirement plans for
individuals, businesses and non-profit organizations. These flexible plans
are designed for use with the Scudder Family of Funds (except Scudder
tax-free funds, which are inappropriate for such plans). Scudder Funds
offer a broad range of investment objectives and can be used to seek almost
any investment goal. Using Scudder's retirement plans can help shareholders
save on current taxes while building their retirement savings.
* Scudder No-Fee IRAs. These retirement plans allow a maximum annual
contribution of $2,000 per person for anyone with earned income. Many
people can deduct all or part of their contributions from their
taxable income, and all investment earnings accrue on a tax deferred
basis. The Scudder No-Fee IRA charges no annual custodial fee.
* 401(k) Plans. 401(k) plans allow employers and employees to make
tax-deductible retirement contributions. Scudder offers a full service
program that includes recordkeeping, prototype plan, employee
communications and trustee services, as well as investment options.
* Profit Sharing and Money Purchase Pension Plans. These plans allow
corporations, partnerships and people who are self-employed to make
annual, tax-deductible contributions of up to $30,000 for each person
covered by the plans. Plans may be adopted individually or paired to
maximize contributions. These are sometimes known as Keogh plans.
* 403(b) Plans. Retirement plans for tax-exempt organizations and school
systems to which employers and employees may both contribute.
* SEP-IRAs. Easily administered retirement plans for small businesses
and self-employed individuals. The maximum annual contribution to
SEP-IRA accounts is adjusted each year for inflation.
* Scudder Horizon Plan. A no-load variable annuity that lets you build
assets by deferring taxes on your investment earnings. You can start
with $2,500 or more.
Scudder Trust Company (an affiliate of the Adviser) is Trustee or Custodian
for some of these plans and is paid an annual fee for some of the above
retirement plans. For information about establishing a Scudder No-Fee IRA
or a Scudder Horizon Plan, please call 1-800-225-2470. For information
about 401(k)s, 403(b)s, Profit Sharing Plans, Money Purchase Pension Plans
or SEP-IRAs, please call 1-800-323-6105. To effect transactions in existing
IRA, SEP-IRA, Profit Sharing or Pension Plan accounts, call 1-800-225-5163.
The variable annuity contract is provided by Charter National Life
Insurance Company (in New York State, Intramerica Life Insurance Company
(S 1802)). The contract is offered by Scudder Insurance Agency, Inc. (in
New York State, Nevada and Montana, Scudder Insurance Agency of New York,
Inc.). CNL, Inc. is the Principal Underwriter. Scudder Horizon Plan is not
available in all states.
Directors and Officers
Edmond D. Villani*
Chairman of the Board and Director
Nicholas Bratt*
President and Director
Paul Bancroft III
Director; Venture Capitalist and Consultant
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
Thomas F. McDonough*
Vice President and Secretary
Pamela A. McGrath*
Vice President and Treasurer
David S. Lee*
Vice President and Assistant 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 Service
Corporation
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
Information
1-800-225-2470
For establishing Keogh, 401(k) and 403(b) plans
Scudder Group
Retirement 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 Information 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.
