This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
Scudder
Global
Fund
Annual Report
June 30, 1995
o For investors seeking long-term growth of capital from a professionally
managed portfolio consisting primarily of U.S. and foreign common stocks.
o A pure no-load(TM) fund with no commissions to buy, sell, or exchange shares.
<PAGE>
SCUDDER GLOBAL FUND
- --------------------------------------------------------------------------------
CONTENTS
2 In Brief
3 Letter from the Fund's Chairman
4 Performance Update
5 Portfolio Summary
6 Portfolio Management Discussion
10 Investment Portfolio
19 Financial Statements
22 Financial Highlights
23 Notes to Financial Statements
28 Report of Independent Accountants
29 Tax Information
29 Officers and Directors
30 Investment Products and Services
31 How to Contact Scudder
IN BRIEF
o Scudder Global Fund provided a 9.11% total return for the 12 months ended
June 30, 1995, reflecting a significantly improved investment environment
in the final six months of the period.
o The Fund surpassed the 7.55% average return of the 108 global equity funds
tracked by Lipper Analytical Services, Inc. during the period but failed to
keep pace with the unmanaged Morgan Stanley Capital International (MSCI)
World Index. The 10.67% return of the Index reflects a greater exposure to
the strong United States stock market, without which the Index would have
returned 2.27%. Over longer periods, however, the Fund has generally
outperformed the Index.
(BAR CHART TITLE)
Average Annual Total Returns for Periods
Ended June 30, 1995
------------------------------------------------------------------
Scudder Global Fund MSCI World Index
------------------------------------------------------------------
(BAR CHART DATA)
Five years 8.63% 7.14%
------------------------------------------------------------------
Life of Fund* 12.04% 10.21%
------------------------------------------------------------------
* The Fund commenced operations on July 23, 1986. For the purpose of
comparison, Index returns are from July 31. Past performance is no
guarantee of future results.
o The Fund maintained exposure to a number of investment themes during the
year, while decreasing its emphasis on stocks likely to benefit from
synchronized world growth. A new theme, "Hidden German Wealth," was added
during the year to take advantage of the enormous wealth-creating potential
of German privatization.
2
<PAGE>
LETTER FROM THE FUND'S CHAIRMAN
- --------------------------------------------------------------------------------
Dear Shareholders,
After a difficult 1994, stock prices improved dramatically in the first
half of this year as concerns about inflationary economic growth all but
disappeared. Economic growth in the United States and Europe has shown signs of
weakening in recent months, allowing investors to focus on the strong corporate
earnings increases that have characterized the past few years.
By and large, the U.S. stock market has reacted most favorably to this
confluence of circumstances, with a 20.21% rise in the unmanaged S&P 500 Index
for the first half of 1995. While growth in capital markets is always welcome,
rapid increases in asset prices often warn of excess -- and a 20% increase for
such a short period is not reflective of an economy late in its expansionary
cycle. Indeed, the recent surge in mergers and acquisitions suggests that U.S.
corporations may have exhausted the benefits of downsizing for this cycle and
are looking to other means of generating profits. At a minimum, we think it will
be difficult for the stock market to repeat in the next six months its
performance in the first half of the year, and caution investors not to be
surprised by any near-term corrections.
Fortunately, the Scudder Global Fund has roughly two thirds of its
holdings invested outside the United States, where such forces as privatization,
massive infrastructure development, and demographic changes are creating
unprecedented opportunities for financial reward. The world's capital markets
are being driven by disinflationary growth, manifested daily in technological
innovation, deregulation, and monetary restraint. While we believe this backdrop
is healthy for equity markets in general, Scudder Global Fund seeks to identify
those companies that will provide superior investment results based on their
participation in the dynamic of the world economy.
If you have any questions about your Fund or your investments, please
contact a Scudder Investor Relations representative at 1-800-225-2470. Page 31
provides more information on how to contact Scudder. Thank you for your
continued interest in the Scudder Global Fund.
Sincerely,
/s/Edmond D. Villani
Edmond D. Villani
Chairman,
Scudder Global Fund
3
<PAGE>
Scudder Global Fund
Performance Update as of June 30, 1995
- -----------------------------------------------------------------
Growth of a $10,000 Investment
- -----------------------------------------------------------------
Scudder Global Fund
- ----------------------------------------
Total Return
Period Growth -------------
Ended of Average
6/30/95 $10,000 Cumulative Annual
- --------- ------- ---------- -------
1 Year $10,911 9.11% 9.11%
5 Year $15,129 51.29% 8.63%
Life of
Fund* $27,638 176.38% 12.04%
MSCI World Index
- --------------------------------------
Total Return
Period Growth -------------
Ended of Average
6/30/95 $10,000 Cumulative Annual
- --------- ------- ---------- -------
1 Year $11,067 10.67% 10.67%
5 Year $14,119 41.19% 7.14%
Life of
Fund* $23,781 137.81% 10.21%
*The Fund commenced operations on July 23, 1986.
Index comparisons begin July 31, 1986.
A chart in the form of a line graph appears here,
illustrating the Growth of a $10,000 Investment.
The data points from the graph are as follows:
Yearly periods ended June 30
Scudder Global Fund
Year Amount
- ----------------------
7/31/86 10000
87 12850
88 12286
89 15223
90 18268
91 17318
92 19758
93 22417
94 25329
27638
MSCI World Index
Year Amount
- ----------------------
7/31/86 10000
87 14131
88 13983
89 15728
90 16843
91 16019
92 16696
93 19492
94 21488
95 23781
Morgan Stanley Capital International (MSCI) World Index is an
unmanaged capitalization-weighted measure of global stock markets
including the U.S., Canada, Europe, Australia, and the Far East.
Index returns assume dividends reinvested net of withholding tax
and, unlike Fund returns, do not reflect any fees or expenses.
- -------------------------------------------------------------------
Returns and Per Share Information
- -------------------------------------------------------------------
A chart in the form of a bar graph appears here,
illustrating the Fund Total Return (%) and Index Total
Return (%) with the exact data points listed in the table
below.
Yearly periods ended June 30
- ----------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1987* 1988 1989 1990 1991 1992 1993 1994 1995
-----------------------------------------------------------------------
Net Asset Value... $15.42 $14.47 $17.64 $20.36 $18.06 $19.56 $21.63 $23.93 $25.64
Income Distributions $ -- $ .06 $ .14 $ .20 $ .37 $ .31 $ .16 $ .24 $ .11
Capital Gains
Distributions..... $ -- $ .25 $ .08 $ .55 $ .83 $ .66 $ .34 $ .26 $ .34
Fund Total
Return (%)........ 28.50 -4.45 23.90 20.00 -5.20 14.09 13.45 12.99 9.11
Index Total
Return (%)........ 41.31 -1.05 12.48 7.09 -4.90 4.22 16.75 10.23 10.67
</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 Adviser had not maintained the Fund's expenses, the average annual
total return for the one year, five year and life of Fund periods would
have been lower.
4
<PAGE>
Portfolio Summary as of June 30, 1995
- ---------------------------------------------------------------------------
Geographical (Excludes Cash Equivalents & Debt)
- ---------------------------------------------------------------------------
Europe 40%
U.S. & Canada 28% Investments in Germany, where the private
Pacific Basin 16% sector is increasingly the vehicle for
Japan 9% wealth creation and distribution, now
Latin America 3% account for 11.92% of the Fund's equity
Other 4% holdings.
----
100%
====
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- --------------------------------------------------------------------------
Sectors (Excludes Cash Equivalents & Debt)
- --------------------------------------------------------------------------
Financial 20%
Manufacturing 14%
Metals & Minerals 12% Our belief that world economic growth
Utilities 10% will be capital-goods related rather
Energy 8% than consumer driven is reflected in
Technology 7% the Fund's top sectors.
Health 6%
Consumer Staples 5%
Construction 4%
Other 14%
----
100%
====
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- --------------------------------------------------------------------------
Ten Largest Equity Holdings
- --------------------------------------------------------------------------
1. SAP AG
German computer software manufacturer
2. Brown, Boveri & Cie. AG
Manufacturer of electrical equipment in Switzerland
3. Sandoz Ltd. AG
Pharmaceutical company in Switzerland
4. Internationale-Nederlanden Groep CVA
Banking and insurance holding company in the Netherlands
5. VEBA AG
Electric utility, distributor of oil and chemicals in Germany
6. Samsung Electronics Co., Ltd.
Major electronics manufacturer in Korea
7. Muenchener Rueckversicherungs AG
Insurance company in Germany
8. Enron Corp.
Major U.S. natural gas pipeline system
9. Lasmo PLC
Oil production and exploration in the United Kingdom
10. Canadian Pacific Ltd.
Transportation and natural resource conglomerate
SAP AG, the Fund's largest holding, returned over 200% for the
12 months ended June 30, based on price appreciation and a strong
deutschemark.
For more complete details about the Fund's Investment Portfolio,
see page 10.
A monthly Investment Portfolio Summary and quarterly Portfolio Holdings
are available upon request.
5
<PAGE>
SCUDDER GLOBAL FUND
PORTFOLIO MANAGEMENT DISCUSSION
- --------------------------------------------------------------------------------
Dear Shareholders,
Scudder Global Fund returned 9.11% for the 12 months ended June 30, 1995,
based on a $1.71 increase in net asset value and distributions of income and
capital gains totaling $0.45 per share. While the Fund's return has been
competitive with global portfolios in general, outpacing the 7.55% average
return of its peers, it has lagged the U.S. market, which has shown superior
appreciation in recent months. Currency trends are critical to the explanation.
A Weak Dollar Bears Fruit
When changes in relative currency values persist for a long period of time,
they become the mechanism by which income is allocated between consumers and
producers. An expensive currency tilts the economy towards consumers, who buy
foreign goods more cheaply; a cheap one towards producers, who become more
competitive overseas. Until several years ago the dollar was chronically
overvalued, particularly versus the yen and the deutschemark. Americans
consumed, while other countries produced. The overvaluation reached a crescendo
in the middle of the 1980s and initiated many years of American cost-cutting to
meet the challenge of foreign and particularly Japanese competition. As the
relative valuations of the dollar and other currencies reversed, American
products suddenly became extremely competitive in world markets. As the
devaluation reached a climax early this year, American companies enjoyed a
veritable profits explosion. Even though the falling dollar raised the price of
foreign equities, it undermined the competitiveness of Japanese, German, and
other "hard currency" producers. This latter effect is more real and lasting
than the temporary effect of currency translation, in our opinion, and the
global markets have recognized it as such.
At the same time the openness of the U.S. economy has allowed for the
cheapest sources of imports and the widest possible use of information
technology with the result that inflation has been restrained, despite the
falling dollar. Japan and Germany are more regulated. This may preserve the
stability of relationships between individuals and groups within society but can
only delay access to the benefits of global markets and technology.
Emerging economies are subcontractors to the first world. When productive
capacity or investment opportunities in the developed economies wane, then
producers and investors seek opportunity in such places. When the global
economic cycle subsides, these are the first places to suffer. So violent is the
6
<PAGE>
roller coaster effect on national income that they usually feel the need to
regulate their economies heavily. One way in which they do this is to fix the
value of their currencies to the dollar. In recent months the combination of
healthy world growth and a low dollar has allowed many of them to show strong
recoveries.
The amount of goods that 100 yen would buy outside Japan has been
considerably higher than the amount it could buy inside Japan, and the disparity
has been rising. We have been anticipating for a long while that yen would flow
out of Japan and its value decline. The yen has been so far from reasonable
value, in our view, that we have been unwilling to invest heavily in companies
dependent on a high yen or a low dollar. To date, this has penalized the
portfolio. For example, it explains why the great exporting companies of Japan,
such as Hitachi and MEI, have not shown better performance. It also explains why
the portfolio does not own more U.S. technology stocks. We believe the earnings
of these stocks have been inflated by the competitive edge of a low currency,
though their success is obviously due to far more than that.
The Portfolio
By design the portfolio strategies are diverse, based as they are on
independent investment themes. They do not rely on a single view of the world or
our expectations for changes in currency values. Rather, individual stock
selections are made on the basis of each company's participation in the forces
we believe are changing the global economic landscape. Xerox is a good example.
The company was slow to understand the Japanese challenge. It responded by
cutting facilities and employees and deepening its investment in technology,
which has taken many years to flow through to profits. Just as it began to, the
yen rise inflated its principal competitors' costs -- but that has been a bonus.
IBM, another portfolio holding, has similar influences at work.
The biggest change in the Fund's country allocation in recent times has
been the increase in German companies. At the moment, we think that any firming
of the dollar relative to the yen will lead to a lower deutschemark. That should
boost the profits outlook. While not the basis of investment, the possibility of
a lower deutschemark has encouraged us to add to the theme "Hidden German
Wealth." There are various pressures on the German economy--an aging population,
7
<PAGE>
low global diversification in the corporate sector, economically and politically
unstable neighbors to the east, and a competitiveness problem related to the
weak currencies of Western Europe. The resources required to address these
challenges are far more likely to be found in the private sector, in our
estimation. More and more German companies are contemplating U.S. stock market
listings. Meanwhile, the Dresdner Bank's acquisition of a U.K. merchant bank
underscores that capital markets expertise is being bought outside Germany. The
importance of the German stock market as a mechanism for raising capital is
rapidly coming into question. The privatization of the huge Deutsche Telekom
will focus the mind of Germany's establishment on the whole question. For the
portfolio, we have invested primarily in companies such as VEBA, RWE, Viag, BV
Bank, and Munich RE, which have ownership of either a large number of
independent subsidiaries or valuable stakes in other companies. If the German
stock market is used as a mechanism for the more efficient allocation of
resources, the portfolio should benefit greatly.
The lesson of Switzerland's great global companies has surely not been lost
on the German industrialists. With a small capital market but large global
companies, Swiss business realized early that it needed access to the world
stock market. It has responded by reforming its accounting and communications
with investors. Far from being a bastion of secrecy, Swiss companies are eager
to tell us their story. It is partially for this reason that we have been more
heavily invested in Swiss global companies than German companies until recently.
Sandoz, Nestle, and Swiss Reinsurance are examples of portfolio holdings.
The emerging markets theme accounts for around 12% of the portfolio,
including the stocks that were bought because of the introduction of foreign
capital to hitherto capital-starved economies. That there are profitable
opportunities in such countries as China, Brazil, South Africa, and South Korea
is beyond question. However, equally true is that the political systems of such
countries may suffer considerable stress from time to time as the volatility of
their economies buffets individuals' expectations, which have been heightened in
recent times by the global media. The challenge is to understand the places that
can establish self-perpetuating growth. The Fund does not rely on the liquidity
of these stock markets to realize investment returns but rather intrinsic
growth. We have invested in South Korea on this basis.
8
<PAGE>
Elsewhere our approach is opportunistic, as evidenced by the portfolio's
investments in the Brazilian power generation industry, which we believe will
likely benefit from a number of restructurings and privatizations.
The other themes in the portfolio reviewed in the mid-year report to
shareholders are Capital Investment Led Growth, Gold/Platinum, Life Insurance,
Strategically Safe Oil, Thoroughly Modern Companies, and the Shortage of
Reinsurance Capacity. Since that time, the principal changes in the portfolio in
terms of individual issues have been the addition of Royal Dutch Petroleum and
Biogen. In addition, profits were taken in Argentine Par bonds following Carlos
Menem's re-election. Elsewhere, there was a small, across-the-board reduction in
the Fund's Japanese holdings.
Outlook
The economists tell us that growth and inflation prospects are favorable.
This has been recognized in the U.S. stock market so far this year. Foreign
stock markets are low relative to the United States and may have to wait for the
dollar to rise, thereby enhancing the competitiveness of their companies in
world markets. The level of the yen to the dollar is critical to the future
direction of capital markets, and its recent -- though admittedly small -- rise
bodes well for overseas investments. With roughly two thirds of assets domiciled
outside the United States, we believe the Fund is positioned to provide
competitive investment returns for shareholders.
Sincerely,
Your Portfolio Management Team
/s/William E. Holzer /s/Nicholas Bratt
William E. Holzer Nicholas Bratt
/s/Alice Ho
Alice Ho
(SIDEBAR)
Scudder Global Fund:
A Team Approach to Investing
Scudder Global 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. We believe our team
approach benefits Fund investors by bringing together many disciplines and
leveraging Scudder's extensive resources.
Lead Portfolio Manager William E. Holzer has had day-to-day responsibility
for Scudder Global Fund's worldwide strategy and investment themes since its
inception in 1986. Willy, who has over 20 years' experience in global investing,
joined Scudder in 1980. Nicholas Bratt, Portfolio Manager, directs Scudder's
overall global equity investment strategies. Nick joined Scudder in 1976 and the
team in 1993. Alice Ho, Portfolio Manager, joined the team in 1994 and is also
responsible for implementing the Fund's strategy. Alice, who joined Scudder in
1986 as a member of the institutional and private investment counsel areas, has
worked as a portfolio manager since 1989.
9
<PAGE>
<TABLE>
SCUDDER GLOBAL FUND
INVESTMENT PORTFOLIO as of June 30, 1995
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Principal Market
Portfolio Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
--------------------------------------------------------------------------------
2.5% REPURCHASE AGREEMENTS
--------------------------------------------------------------------------------
29,000,000 Repurchase Agreement with Donaldson,
Lufkin & Jenrette, dated 6/30/95 at 6.07%,
to be repurchased at $29,014,669 on 7/3/95,
collateralized by a $29,789,000 U.S. Treasury
Bill, 10/19/95 (Cost $29,000,000).............. 29,000,000
----------
--------------------------------------------------------------------------------
4.2% BONDS
--------------------------------------------------------------------------------
50,000,000 U.S. Treasury Note, 5.625%, 6/30/97
(Cost $49,839,844)............................. 49,839,850
----------
--------------------------------------------------------------------------------
1.7% CONVERTIBLE BONDS
--------------------------------------------------------------------------------
CANADA 0.6% 6,657,000 Teck Corp., 3.75%, 7/15/06 (Major mining
complex)....................................... 6,773,498
----------
KOREA 0.4% 625,000 Cheil Food and Chemical Co., Ltd., 3%, 12/31/06
(Leading sugar refiner and major integrated
food processor)................................ 725,000
2,700,000 Ssangyong Cement Industrial Co., Ltd., 3%,
12/31/05 (Major cement producer)............... 3,145,500
650,000 Ssangyong Oil Refining Co., Ltd., 3.75%, 12/31/08
(Major oil refiner)............................ 692,250
----------
4,562,750
----------
MALAYSIA 0.4% 4,780,000 Telekom Malaysia Bhd., 4%, 10/3/04
(Telecommunication services)................... 4,588,800
----------
MEXICO 0.3% 8,200,000 Empresa ICA Sociedad Controladora S.A., 5%,
3/15/04 (Construction company)................. 4,387,000
----------
TOTAL CONVERTIBLE BONDS (Cost $22,689,173)....... 20,312,048
----------
--------------------------------------------------------------------------------
3.9% PREFERRED STOCKS
--------------------------------------------------------------------------------
Shares
--------------------------------------------------------------------------------
GERMANY 47,700 Rheinisch-Westfaelisches Elektrizitaetswerk AG
(Electric utility)............................. 13,121,510
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
20,250 SAP AG (Computer software manufacturer)............. 25,516,596
30,000 Spar Handels AG (Food and beverage wholesaler and
retailer)......................................... 7,809,958
----------
TOTAL PREFERRED STOCKS (Cost $22,089,562)........... 46,448,064
----------
--------------------------------------------------------------------------------
87.7% COMMON STOCKS
--------------------------------------------------------------------------------
ARGENTINA 0.6% 253,143 Electricidad Argentina SA (ADR) (Electric
utility) (c)...................................... 4,430,002
134,100 YPF SA "D" (ADR) (Petroleum company)................ 2,531,138
----------
6,961,140
----------
AUSTRALIA 4.3% 1,056,000 Ampol Exploration Ltd. (Oil and gas exploration
company).......................................... 2,388,053
677,909 Australian Gas & Light Co. (Public utility)......... 2,150,103
1,001,960 Broken Hill Proprietary Co. Ltd. (Petroleum,
minerals and steel)............................... 12,341,023
547,000 CRA Ltd. (Mining, manufacturing and development).... 7,445,299
1,148,000 Central Pacific Minerals (Shale oil and mineral
development)...................................... 816,385
6,964,000 Fosters Brewing Group, Ltd. (Leading brewery)....... 6,190,442
4,113,496 M.I.M. Holdings Ltd. (Nonferrous metals and coal)... 5,119,199
3,711,000 Woodside Petroleum Ltd. (Major oil and gas producer) 14,567,430
----------
51,017,934
----------
AUSTRIA 0.3% 61,900 Flughafen Wien AG (Operator of terminals and
facilities at Vienna International Airport)....... 3,292,012
----------
BERMUDA 2.3% 378,150 Mid Ocean Limited (Property and casualty insurance
company).......................................... 11,958,994
570,200 PartnerRe Holdings Ltd. (Property and casualty
insurance company)................................ 14,896,475
----------
26,855,469
----------
BRAZIL 1.5% 30,401,230 Centrais Eletricas Brasileiras S/A "B" (pfd.)
(Electric utility)................................ 8,091,582
126,000,000 Companhia Energetica de Minas Gerais (pfd.)
(Electric power utility).......................... 2,463,878
70,200,000 Companhia Energetica de Sao Paulo (pfd.)
(Electric utility)................................ 2,775,970
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
<TABLE>
SCUDDER GLOBAL FUND
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
10,591,625 Companhia Siderurgica Belgo-Mineira (Manufacturer of
steel wires and wire products).................... 1,340,429
8,447,000 Light Servicos de Eletricidade SA (voting)
(Electricity distributor in the state of Rio de
Janeiro).......................................... 2,661,195
----------
17,333,054
----------
CANADA 4.8% 228,000 Alcan Aluminium Ltd. (CN) (Manufacturer of
aluminum and finished products)................... 6,888,218
188,856 Alcan Aluminum Ltd. ................................ 5,712,894
218,000 Barrick Gold Corp. (CN) (Gold exploration and
production in North and South America)............ 5,514,869
222,200 Barrick Gold Corp. ................................. 5,610,550
314,900 Cambior, Inc. (Medium-sized gold producer with a
major mine in Guyana)............................. 3,897,135
856,944 Canadian Pacific Ltd. (Ord.) (Transportation and
natural resource conglomerate).................... 14,738,334
100,000 Canadian Pacific Ltd. .............................. 1,737,500
240,300 Placer Dome Inc. (CN) (Gold, silver and copper
mining company)................................... 6,275,807
236,000 Placer Dome Inc. ................................... 6,165,500
----------
56,540,807
----------
CHINA 1.3% 526 American Standard China (c)......................... 5,260,000
551,500 Huaneng Power International, Inc. Series N (ADR)
(Developer and operator of large coal-fired power
plants)........................................... 10,133,813
----------
15,393,813
----------
DENMARK 1.2% 138,500 FLS Industries "B" (Machinery for cement and allied
industries; manufacturer and shipper of cement)... 13,720,489
----------
GERMANY 7.2% 44,100 Bayerische Vereinsbank AG (Universal bank).......... 13,378,132
23,000 Hoechst AG (Chemical producer)...................... 4,969,736
38,812 Mannesmann AG (Bearer) (Diversified construction and
technology company)............................... 11,858,170
2,446 Muenchener Rueckversicherungs AG (Insurance company) 4,634,284
5,619 Muenchener Rueckversicherungs AG (Registered)....... 12,311,943
18,040 Siemens AG (Bearer) (Manufacturer of electrical and
electronic equipment)............................. 8,955,751
44,500 VEBA AG (Electric utility, distributor of oil and
chemicals)........................................ 17,489,786
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
29,330 Viag AG (Provider of electrical power and natural
gas services, aluminum products, chemicals,
ceramics and glass)............................... 11,576,320
----------
85,174,122
----------
HONG KONG 2.3% 1,750,000 Cheung Kong Holdings Ltd. (Real estate company)..... 8,684,639
834,600 China Light & Power Co., Ltd. (Electric utility).... 4,292,833
1,150,000 Hong Kong Telecommunications, Ltd.
(Telecommunication services)...................... 2,273,902
1,607,000 Hutchison Whampoa, Ltd. (Container terminal and real
estate company)................................... 7,788,066
2,225,000 Mandarin Oriental (Luxury hotel chain).............. 2,225,000
258 New World Development Co., Ltd. (Property
investment and development, construction and
engineering, hotels and restaurants,
telecommunications)............................... 859
608,000 Television Broadcasts, Ltd. (Television
broadcasting)..................................... 2,137,248
----------
27,402,547
----------
HUNGARY 0.3% 3,619 First Hungary Fund (Investment company) (c)......... 3,485,097
----------
JAPAN 8.4% 704,000 Canon Inc. (Leading producer of visual image and
information equipment)............................ 11,462,687
1,140,000 Hitachi Ltd. (General electronics manufacturer)..... 11,365,701
1,001,000 Iino Kaiun Kaisha, Ltd. (Operator of tankers and
specialized carriers)............................. 5,515,509
191,000 Kyocera Corp. (Leading ceramic package manufacturer) 15,729,809
659,000 Matsushita Electrical Industrial Co., Ltd.
(Consumer electronic products manufacturer)....... 10,263,465
794,000 NSK Ltd. (Leading manufacturer of bearings and other
machinery parts).................................. 4,581,039
90,000 Nichiei Co., Ltd. (Finance company for small and
medium-sized firms)............................... 5,553,655
35,000 Nintendo Co., Ltd. (Game equipment manufacturer).... 2,011,091
1,047,000 Nisshin Steel Co., Ltd. (Blast furnace steelmaker).. 3,841,862
157,000 Secom Co., Ltd. (Electronic security system operator) 9,873,282
144,000 Sony Corp. (Consumer electronic products
manufacturer)...................................... 6,914,990
1,690,000 Sumitomo Metal Mining Co., Ltd. (Leading gold,
nickel and copper mining company).................. 12,482,331
----------
99,595,421
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
<TABLE>
SCUDDER GLOBAL FUND
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Korea 4.8% 10,000 Baikyang (Underwear manufacturer)................... 1,688,432
91,549 Cheil Food and Chemical Co., Ltd. (Korea's largest
sugar refiner and major integrated food processor) 5,736,153
334,374 Daewoo Heavy Industries Ltd. (Leading manufacturer
of heavy industrial equipment).................... 3,969,616
53,251 Daewoo Securities Co., Ltd. (Brokerage and financial
services)......................................... 1,503,194
121,464 Hanil Bank (Major commercial bank).................. 1,374,701
69,000 units Korea Asia Fund (IDR) (Investment company) (b)...... 1,380,000
25,000 Korea Electric Power Co. (Electric utility)......... 936,552
140 units Korea Equity Trust IDR (Investment company) (b)..... 1,610,000
78,207 Korea Express Co., Ltd. (General freight transport
company).......................................... 3,012,326
20,338 Korea Express Co., Ltd. (New (d))................... 697,517
49,799 Korea Long Term Credit Bank (Major commercial bank). 1,425,456
2,000 Korea Mobile Telecom (Mobile telecommunication
company)* (c)..................................... 1,882,891
80,000 Korea Zinc Co. (Zinc mining and manufacturing)...... 1,899,486
14,220 Lotte Confectionery Co., Ltd. (Major producer of
snack food)....................................... 1,913,257
101,398 Oriental Brewery Co., Ltd. (Korea's largest brewer). 2,340,674
25,000 Pang-Rim Spinning Co., Ltd. (Leading manufacturer of
cotton-polyester spun fabrics).................... 1,559,821
13,933 Samsung Electromechanics Co., Ltd. (Major
electronics parts company)........................ 665,314
5,448 Samsung Electromechanics Co., Ltd. (New (d))........ 248,649
1,153 Samsung Electronics Co., Ltd. (Major electronics
manufacturer) (c)................................. 196,684
228 Samsung Electronics Co., Ltd. (New (d)) (c)......... 38,415
28,625 Samsung Electronics Co., Ltd. (GDS) (Voting)........ 2,061,000
5,664 Samsung Electronics Co., Ltd. (GDS) (Voting)
(New (d)) (c)..................................... 407,321
223,680 Samsung Electronics Co., Ltd. (GDS) (Non-voting).... 12,078,720
44,266 Samsung Electronics Co., Ltd. (GDS) (Non-voting)
(New (d)) (c)..................................... 2,386,292
94,557 Samsung Heavy Industries Co., Ltd. (Machinery
manufacturer)..................................... 2,644,253
12,349 Samsung Heavy Industries Co., Ltd. (New (d))........ 309,499
43 units Seoul International Trust (Investment company) (b).. 2,042,500
37,206 Ssangyong Cement Industrial Co., Ltd. (Major cement
company).......................................... 1,001,190
----------
57,009,913
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NETHERLANDS 3.7% 426,422 AEGON Insurance Group NV (Insurance company)........ 14,750,706
324,786 Internationale-Nederlanden Groep CVA (Banking and
insurance holding company)........................ 17,963,317
92,600 Royal Dutch Petroleum Co. (New York shares)
(International energy company).................... 11,285,625
----------
43,999,648
----------
NEW ZEALAND 0.8% 2,600,000 Telecom Corp. of New Zealand (Telecommunication
services)......................................... 9,734,247
----------
NORWAY 0.1% 200,000 Smedvig Tankships Ltd. (Owner and operator of
tankers).......................................... 1,379,534
----------
PANAMA 0.5% 165,900 Banco Latinoamericano de Exportaciones, SA
(ADR) (Bank)...................................... 5,495,438
----------
SINGAPORE 0.9% 993,111 Jardine Matheson Holdings, Ltd. (Conglomerate: real
estate, merchandising, engineering)............... 7,299,366
1,008,000 Jardine Strategic Holdings Ltd. (Conglomerate: auto
distribution, food retailing, property investment
and development).................................. 3,245,760
----------
10,545,126
----------
SOUTH AFRICA 1.1% 468,500 Impala Platinum Holdings (ADR) (Leading platinum
producer)......................................... 11,829,625
75,000 Rustenburg Platinum Holdings, Ltd. (ADR) (Leading
platinum producer)................................ 1,556,250
----------
13,385,875
----------
SWEDEN 3.9% 502,000 Astra AB "A" (Free) (Pharmaceutical company)........ 15,484,460
78,800 Atlas Copco AB (Free) (Manufacturer of air and gas
compressors)...................................... 1,104,339
676,300 S.K.F. AB "B" (Free) (Manufacturer of roller
bearings)......................................... 13,659,435
417,300 Skandia Foersaekrings AB (Free) (Financial
conglomerate)..................................... 8,084,320
425,400 Volvo AB "B" (Free) (Automobile manufacturer)....... 8,095,120
----------
46,427,674
----------
SWITZERLAND 8.5% 17,915 Brown, Boveri & Cie. AG (Bearer) (Manufacturer of
electrical equipment)............................. 18,545,098
4,000 Ciba-Geigy AG (Bearer) (Pharmaceutical company)..... 2,928,354
13,735 Ciba-Geigy AG (Registered).......................... 10,067,165
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
<TABLE>
SCUDDER GLOBAL FUND
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
9,621 Nestle SA (Registered) (Food manufacturer).......... 10,017,871
26,715 Sandoz Ltd. AG (Registered) (Pharmaceutical
company).......................................... 18,420,938
2,675 Schindler Holdings AG (PC) (Leading elevator and
escalator manufacturer)........................... 2,590,208
37,468 Swiss Bank Corp. (Bearer) (Switzerland's second
largest universal bank)........................... 13,275,679
16,075 Swiss Reinsurance (Registered) (Life, accident and
health insurance company)......................... 12,382,566
1,180 Zurich Insurance Group (Bearer) (Insurance company). 1,482,814
8,970 Zurich Insurance Group (Registered)................. 11,271,898
-----------
100,982,591
-----------
UNITED KINGDOM 8.3% 2,830,400 British Gas PLC (Integrated gas utility)............ 13,031,183
1,847,000 Enterprise Oil PLC (Oil and gas exploration and
production)....................................... 11,631,870
677,600 Great Universal Stores PLC "A" (Catalog home
shopping, retailing, finance and property
investment)....................................... 6,330,948
6,067,285 Lasmo PLC (Oil production and exploration).......... 16,548,018
140,900 London & Overseas Freighters (ADR) (Operator of a
fleet of oil tankers)............................. 1,690,800
1,356,000 PowerGen PLC (Electric utility)..................... 10,405,057
1,128,609 RTZ Corp. PLC (Mining and finance company).......... 14,708,891
1,680,000 Reuters Holdings PLC (International news agency).... 13,986,641
3,069,900 St. James's Place Capital PLC (Money management and
insurance)........................................ 5,321,551
1,063,000 Waste Management International PLC* (Waste
collection and disposal services)................. 4,900,146
-----------
98,555,105
-----------
UNITED STATES 20.5% 84,800 AMBAC Inc. (Insurer of municipal bonds)............. 3,402,600
227,500 AirTouch Communications, Inc.* (Wireless
telecommunication services)....................... 6,483,750
236,100 American President Companies, Ltd. (Major
containership operator)........................... 5,607,375
147,000 Biogen Inc.* (Biotechnology research and
development)...................................... 6,541,500
255,700 Boeing Co. (Manufacturer of jet airplanes and
missiles)......................................... 16,013,212
117,000 CMS Energy Corp. (Holding company, electric and gas
utility in Michigan).............................. 2,881,125
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
230,000 Comsat Corp. (Provider of communication and
information services worldwide by fixed and mobile
technology)....................................... 4,513,750
141,600 Consolidated Freightways Inc. (Trucking, air
freight).......................................... 3,132,900
479,000 Destec Energy Inc. (Non-utility producer of
cogeneration and coal gasification power)......... 6,167,125
228,300 EXEL, Ltd. (Provider of liability insurance)........ 11,871,600
481,100 Enron Corp. (Major natural gas pipeline system)..... 16,898,637
136,700 Fluor Corp. (Engineering and construction company).. 7,108,400
99,635 General Re Corp. (Property and casualty reinsurance) 13,338,636
92,100 Harnischfeger Industries, Inc. (Manufacturer of
specialized machinery, equipment and systems)..... 3,188,962
627,000 Homestake Mining Co. (Major international gold
producer)......................................... 10,345,500
145,660 International Business Machines Corp. (Principal
manufacturer and servicer of business and
computing machines)............................... 13,983,360
74,850 J.P. Morgan & Co., Inc. (Commercial banking and
financial services)............................... 5,248,856
739,100 LaFarge Corp. (Leading cement producer)............. 13,858,125
202,650 MBIA Inc. (Insurer of municipal bonds).............. 13,476,225
334,900 MCI Communications Corp. (Long-distance
telecommunications network)....................... 7,367,800
107,500 Policy Management Systems Corp.* (Insurance company
software and services)............................ 4,945,000
259,400 Public Service Co. of New Mexico (Large electric
utility serving the southwest).................... 3,696,450
194,700 Southdown Inc. (Cement and concrete producer)....... 3,723,638
81,000 Thermo Electron Corp.* (Engineered industrial
products and environmental instruments)........... 3,260,250
250,000 Unicom Corp. (Electric utility in northern Illinois) 6,656,250
319,700 United Healthcare Corp. (Owner/manager of health
maintenance organizations and provider of other
speciality health services)....................... 13,227,588
202,700 United Technologies Corp. (Manufacturer of
aerospace, climate control systems and elevators). 15,835,938
266,100 WMX Technologies Inc. (Solid and chemical waste
management services).............................. 7,550,588
97,650 Xerox Corp. (Leading manufacturer of copiers and
duplicators)...................................... 11,449,463
-----------
241,774,603
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
<TABLE>
SCUDDER GLOBAL FUND
- ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
VENEZUELA 0.1% 195,000 Venezolana de Prerreducidos Caroni C.A. (GDS)
(Manufacturer of steel pellets)................... 1,194,375
-------------
TOTAL COMMON STOCKS (Cost $859,867,142)............. 1,037,256,034
-------------
- ---------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT PORTFOLIO - 100.0%
(Cost $983,485,721) (a)........................... 1,182,855,996
=============
<FN>
* Non-income producing security.
(a) The cost for federal income tax purposes was $985,871,156. At June 30, 1995, net unrealized appreciation for all
securities based on tax cost was $196,984,840. This consisted of aggregate gross unrealized appreciation for all
securities in which there was an excess of market value over tax cost of $231,864,561 and aggregate gross
unrealized depreciation for all securities in which there was an excess of tax cost over market value of
$34,879,721.
(b) 500 shares = 1 IDR unit (International Depository Receipt) for Korea Asia Fund
1,000 shares = 1 IDR unit for Korea Equity Trust
1,000 shares = 1 unit for Seoul International Trust
(c) Securities valued in good faith by the Valuation Committee of the Board of Directors. The cost of these securities
at June 30, 1995 aggregated $16,525,397. See Note A of the Notes to Financial Statements.
(d) New shares issued during 1995, eligible for a pro rata share of 1995 dividends.
See page 5 for sector breakdown.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------------------------------------
JUNE 30, 1995
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments, at market (identified cost $983,485,721)
(Note A)....................................................... $ 1,182,855,996
Cash................................................................ 31,528,427
Receivables:
Investments sold............................................... 5,461,827
Dividends and interest......................................... 2,818,314
Foreign taxes recoverable...................................... 898,526
Fund shares sold............................................... 541,117
---------------
Total assets............................................... 1,224,104,207
LIABILITIES
Payables:
Investments purchased.......................................... $ 49,878,057
Fund shares redeemed........................................... 2,379,036
Accrued management fee (Note C)................................ 946,730
Other accrued expenses (Note C)................................ 708,876
Payable on closed forward foreign currency exchange contracts
(Note A).................................................... 2,007,982
---------------
Total liabilities 55,920,681
---------------
Net assets, at market value $ 1,168,183,526
===============
NET ASSETS
Net assets consist of:
Undistributed net investment income............................ $ 8,984,372
Net unrealized appreciation on:
Investments................................................ 199,370,275
Foreign currency related transactions...................... 49,686
Accumulated net realized gain.................................. 15,087,941
Capital stock.................................................. 455,594
Additional paid-in capital..................................... 944,235,658
---------------
Net assets, at market value......................................... $ 1,168,183,526
===============
NET ASSET VALUE, offering and redemption price per share
($1,168,183,526 -:- 45,559,445 shares of capital stock
outstanding, $.01 par value, 100,000,000 shares authorized).... $25.64
======
</TABLE>
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
<TABLE>
SCUDDER GLOBAL FUND
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30, 1995
- --------------------------------------------------------------------------------------------------------------
<C> <C>
INVESTMENT INCOME
Income:
Dividends (net of withholding taxes of $1,706,060).................. $ 18,844,996
Interest............................................................ 8,411,924
---------------
27,256,920
Expenses:
Management fee (Note C)............................................. $ 11,015,077
Services to shareholders (Note C)................................... 2,494,640
Custodian and accounting fees (Note C).............................. 1,162,404
Directors' fees (Note C)............................................ 45,725
Reports to shareholders............................................. 517,034
Legal............................................................... 174,089
Auditing............................................................ 90,047
Federal and state registration...................................... 58,763
Other 55,490 15,613,269
--------------- ---------------
Net investment income............................................... 11,643,651
---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT TRANSACTIONS..
Net realized gain (loss) from:
Investments..................................................... 14,523,166
Foreign currency related transactions........................... (2,575,142) 11,948,024
---------------
Net unrealized appreciation during the period on:
Investments..................................................... 70,145,469
Foreign currency related transactions........................... 2,620,692 72,766,161
--------------- ---------------
Net gain on investment transactions................................. 84,714,185
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................ $ 96,357,836
===============
</TABLE>
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
YEARS ENDED JUNE 30,
INCREASE (DECREASE) IN NET ASSETS 1995 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income............................................... $ 11,643,651 $ 8,994,599
Net realized gain from investment transactions...................... 11,948,024 15,689,031
Net unrealized appreciation on investment transactions during the
period......................................................... 72,766,161 55,680,309
--------------- ---------------
Net increase in net assets resulting from operations................ 96,357,836 80,363,939
--------------- ---------------
Distributions to shareholders from:
Net investment income ($.11 and $.24 per share, respectively)....... (5,208,927) (8,281,802)
--------------- ---------------
Net realized gains from investment transactions ($.34 and $.26 per
share, respectively)........................................... (16,100,320) (8,616,585)
--------------- ---------------
Fund share transactions:
Proceeds from shares sold........................................... 294,309,148 690,156,086
Net asset value of shares issued to shareholders in reinvestment of
distributions.................................................. 20,010,200 15,676,758
Cost of shares redeemed............................................. (316,718,412) (250,398,396)
--------------- ---------------
Net increase (decrease) in net assets from Fund share transactions.. (2,399,064) 455,434,448
--------------- ---------------
INCREASE IN NET ASSETS.............................................. 72,649,525 518,900,000
Net assets at beginning of period................................... 1,095,534,001 576,634,001
--------------- ---------------
Net assets at end of period (including undistributed net investment
income of $8,984,372 and $6,097,828, respectively)............. $ 1,168,183,526 $ 1,095,534,001
=============== ===============
OTHER INFORMATION
INCREASE (DECREASE) IN FUND SHARES
Shares outstanding at beginning of period........................... 45,787,687 26,658,760
--------------- ---------------
Shares sold......................................................... 12,199,342 28,794,350
Shares issued to shareholders in reinvestment of distributions...... 810,995 670,735
Shares redeemed..................................................... (13,238,579) (10,336,158)
--------------- ---------------
Net increase (decrease) in Fund shares.............................. (228,242) 19,128,927
--------------- ---------------
Shares outstanding at end of period................................. 45,559,445 45,787,687
=============== ===============
</TABLE>
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
<TABLE>
SCUDDER GLOBAL FUND
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------------------------------------------------------
THE FOLLOWING TABLE INCLUDES SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD AND OTHER PERFORMANCE INFORMATION
DERIVED FROM THE FINANCIAL STATEMENTS.
<CAPTION>
FOR THE PERIOD
JULY 23, 1986
(COMMENCEMENT
YEARS ENDED JUNE 30, OF OPERATIONS)
------------------------------------------------------------------------- TO JUNE 30,
1995 1994(d) 1993 1992 1991 1990 1989 1988 1987
------------------------------------------------------------------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period............. $23.93 $21.63 $19.56 $18.06 $20.36 $17.64 $14.47 $15.42 $12.00
------ ------ ------ ------ ------ ------ ------ ------ ------
Income from investment
operations:
Net investment income........... .25 .23 .15 .19 .40 .19 .19 .18 .05
Net realized and unrealized
gain (loss) on investment
transactions.................. 1.91 2.57 2.42 2.28 (1.50) 3.28 3.20 (.82) 3.37
------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations 2.16 2.80 2.57 2.47 (1.10) 3.47 3.39 (.64) 3.42
------ ------ ------ ------ ------ ------ ------ ------ ------
Less distributions from:
Net investment income........... (.11) (.24) (.16) (.31) (.37) (.20) (.14) (.06) -
Net realized gains on
investment transactions....... (.34) (.26) (.34) (.66) (.83) (.55) (.08) (.25) -
------ ------ ------ ------ ------ ------ ------ ------ ------
Total distributions.............. (.45) (.50) (.50) (.97) (1.20) (.75) (.22) (.31) -
------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period... $25.64 $23.93 $21.63 $19.56 $18.06 $20.36 $17.64 $14.47 $15.42
====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (%)................. 9.11 12.99 13.45 14.09 (5.20) 20.00 23.90 (4.45) 28.50**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
($ millions)................... 1,168 1,096 577 371 268 257 91 81 102
Ratio of operating expenses,
to average daily net
assets (%)..................... 1.38 1.45 1.48 1.59 1.70 1.81 1.98 1.71(b) 1.84*(a)
Ratio of net investment income to
average daily net assets (%)... 1.03 .97 .90 1.09 2.21 1.77 1.22 1.23 .63*
Portfolio turnover rate (%)...... 44.4 59.7 64.9 44.6 85.0(c) 38.3 30.7 53.8 32.2*
<FN>
(a) The Adviser did not impose all of its management fee during the period July 23, 1986 (commencement of operations) to
December 31, 1986, amounting to $.01 per share.
(b) The Adviser absorbed a portion of the Fund's expenses exclusive of management fees, amounting to $.03 per share.
(c) The portfolio turnover rate on equity securities and debt securities was 62.7% and 174.4%, respectively, based on average
monthly equity holdings and average monthly debt holdings.
(d) Per share amounts have been calculated using weighted average shares outstanding.
* Annualized
** Not annualized
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
A. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
Scudder Global Fund (the "Fund") is a diversified series of Scudder Global
Fund, Inc., a Maryland corporation (the "Corporation") registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The policies described below are followed consistently by
the Fund in the preparation of its financial statements in conformity with
generally accepted accounting principles.
SECURITY VALUATION. Portfolio securities which are traded on U.S. or foreign
stock exchanges are valued at the most recent sale price reported on the
exchange on which the security is traded most extensively. If no sale occurred,
the security is then valued at the calculated mean between the most recent bid
and asked quotations. If there are no such bid and asked quotations, the most
recent bid quotation is used. Securities quoted on the National Association of
Securities Dealers Automatic Quotation ("NASDAQ") System, for which there have
been sales, are valued at the most recent sale price reported on such system.
If there are no such sales, the value is the high or "inside" bid quotation.
Securities which are not quoted on the NASDAQ System but are traded in another
over-the-counter market are valued at the most recent sale price on such
market. If no sale occurred, the security is then valued at the calculated
mean between the most recent bid and asked quotations. If there are no such bid
and asked quotations, the most recent bid quotation shall be used.
Portfolio debt securities with remaining maturities greater than sixty days are
valued by pricing agents approved by the officers of the Fund, which quotations
reflect broker/dealer-supplied valuations and electronic data processing
techniques. If the pricing agents are unable to provide such quotations, the
most recent bid quotation supplied by a bona fide market maker shall be used.
Short-term investments having a maturity of sixty days or less are valued at
amortized cost.
All other securities are valued at their fair value as determined in good faith
by the Valuation Committee of the Board of Directors. Securities valued in good
faith by the Valuation Committee of the Board of Directors at fair value
amounted to $18,086,702 (1.5% of net assets) and have been noted in the
investment portfolio as of June 30, 1995.
23
<PAGE>
SCUDDER GLOBAL FUND
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
certain banks and broker/dealers whereby the Fund, through its custodian,
receives delivery of the underlying securities, the amount of which at the time
of purchase and each subsequent business day is required to be maintained at
such a level that the market value, depending on the maturity of the repurchase
agreement, is equal to at least 100.5% of the resale price.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Fund are maintained
in U.S. dollars. Foreign currency transactions are translated into U.S. dollars
on the following basis:
(i) market value of investment securities, other assets and
liabilities at the daily rates of exchange, and
(ii) purchases and sales of investment securities, dividend and
interest income and certain expenses at the rates of exchange
prevailing on the respective dates of such transactions.
The Fund does not isolate that portion of gains and losses on investments which
is due to changes in foreign exchange rates from that which is due to changes
in market prices of the investments. Such fluctuations are included with the
net realized and unrealized gains and losses from investments.
Net realized and unrealized gain (loss) from foreign currency related
transactions includes gains and losses between trade and settlement dates on
securities transactions, gains and losses arising from the sales of foreign
currency, and gains and losses between the ex and payment dates on dividends,
interest, and foreign withholding taxes.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS. A forward foreign currency
exchange contract (forward contract) is a commitment to purchase or sell a
foreign currency at the settlement date at a negotiated rate. During the
period, the Fund utilized forward contracts as a hedge in connection with
portfolio purchases and sales of securities denominated in foreign currencies
and as a hedge against changes in exchange rates relating to foreign currency
denominated assets.
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Forward contracts are valued at the prevailing forward exchange rate of the
underlying currencies and unrealized gain/loss is recorded daily. Forward
contracts having the same settlement date and broker are offset and any gain
(loss) is realized on the date of offset; otherwise, gain (loss) is realized on
settlement date. Realized and unrealized gains and losses which represent the
difference between the value of the forward contract to buy and the forward
contract to sell are included in net realized and unrealized gain (loss) from
foreign currency related transactions.
Certain risks may arise upon entering into forward contracts from the potential
inability of counterparties to meet the terms of their contracts. Additionally,
when utilizing forward contracts to hedge, the Fund gives up the opportunity to
profit from favorable exchange rate movements during the term of the contract.
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. The
Fund paid no federal income taxes and no federal income tax provision was
required.
DISTRIBUTION OF INCOME AND GAINS. Distributions of net investment income are
made annually. During any particular year net realized gains from investment
transactions, in excess of available capital loss carryforwards, would be
taxable to the Fund if not distributed and, therefore, will be distributed to
shareholders annually. An additional distribution may be made to the extent
necessary to avoid the payment of a four percent federal excise tax.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax
regulations which may differ from generally accepted accounting principles.
These differences primarily relate to investments in forward contracts, passive
foreign investment companies, and certain securities sold at a loss. As a
result, net investment income (loss) and net realized gain (loss) on investment
transactions for a reporting period may differ significantly from distributions
during such period. Accordingly, the Fund may periodically make
reclassifications among certain of its capital accounts without impacting the
net asset value of the Fund.
25
<PAGE>
SCUDDER GLOBAL FUND
- --------------------------------------------------------------------------------
The Fund uses the identified cost method for determining realized gain or loss
on investments for both financial and federal income tax reporting purposes.
OTHER. Investment security transactions are accounted for on a trade date
basis. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Original
issue discounts are accreted for both tax and financial reporting purposes.
B. PURCHASES AND SALES OF SECURITIES
- --------------------------------------------------------------------------------
Purchases and sales of investment securities (excluding short-term investments)
for the year ended June 30, 1995 aggregated $554,255,437 and $476,625,439,
respectively.
C. RELATED PARTIES
- --------------------------------------------------------------------------------
Under the Investment Management Agreement (the "Management Agreement") with
Scudder, Stevens & Clark, Inc. (the "Adviser"), the Adviser directs the
investments of the Fund in accordance with its investment objectives, policies,
and restrictions. The Adviser determines the securities, instruments, and other
contracts relating to investments to be purchased, sold or entered into by the
Fund. In addition to portfolio management services, the Adviser provides certain
administrative services in accordance with the Management Agreement. The
management fee payable under the Management Agreement is equal to an annual rate
of 1% of the first $500,000,000 of average daily net assets and 0.95% of such
assets in excess of $500,000,000 computed and accrued daily and payable monthly.
The Management Agreement also provides that if the Fund's expenses, exclusive of
taxes, interest, and extraordinary expenses, exceed specified limits, such
excess, up to the amount of the management fee, will be paid by the Adviser. For
the year ended June 30, 1995, the fee pursuant to the Management Agreement
amounted to $11,015,077, which was equivalent to an annualized effective rate of
.97% 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.
Included in services to shareholders is $2,144,775 charged to the Fund by SSC
during the year ended June 30, 1995, of which $175,679 is unpaid at June 30,
1995.
26
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Effective March 14, 1995, Scudder Fund Accounting Corporation ("SFAC"), a
wholly-owned subsidiary of the Adviser, assumed responsibility for determining
the daily net asset value per share and maintaining the portfolio and general
accounting records of the Fund. For the year ended June 30, 1995, the amount
charged to the Fund by SFAC aggregated $151,979, of which $42,505 is unpaid at
June 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 year
ended June 30, 1995, Directors' fees aggregated $45,725.
27
<PAGE>
SCUDDER GLOBAL FUND
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
TO THE DIRECTORS OF SCUDDER GLOBAL FUND, INC. AND TO THE SHAREHOLDERS OF
SCUDDER GLOBAL FUND:
We have audited the accompanying statement of assets and liabilities of Scudder
Global Fund including the investment portfolio, as of June 30, 1995, and the
related statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended, and
the financial highlights, for each of the eight years in the period then ended
and for the period July 23, 1986 (commencement of operations) to June 30, 1987.
These financial statements and financial highlights are the responsibility
of the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of June 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 Global Fund as of June 30, 1995, the results of its operations for
the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the eight
years in the period then ended, and for the period July 23, 1986 (commencement
of operations) to June 30, 1987 in conformity with generally accepted
accounting principles.
Boston, Massachusetts COOPERS & LYBRAND L.L.P.
August 11, 1995
28
<PAGE>
TAX INFORMATION
- --------------------------------------------------------------------------------
The Fund paid distributions of $.29 per share from net long-term capital
gains during its fiscal year ended June 30, 1995.
Pursuant to Section 852 of the Internal Revenue Code, the Fund designates
$15,519,523 as a long-term capital gain dividend for the fiscal year ended
June 30, 1995.
For its fiscal year ended June 30, 1995, the total amount of income
received by the Fund from sources within foreign countries and possessions
of the United States was $.174 per share (representing a total of
$7,927,334). The total amount of taxes paid by the Fund to such countries
was $.037 per share (representing a total of $1,706,060).
Please consult a tax adviser if you have questions about federal or state
income tax laws, or on how to prepare your tax returns. If you have
specific questions about your Scudder Fund account, please call a Scudder
Investor Relations Representative at 1-800-225-5163.
- --------------------------------------------------------------------------------
OFFICERS AND DIRECTORS
- --------------------------------------------------------------------------------
Edmond D. Villani*
Chairman of the Board and Director
William E. Holzer*
President
Paul Bancroft III
Director; Venture Capitalist and Consultant
Nicholas Bratt*
Director
Thomas J. Devine
Director; Consultant
William H. Gleysteen, Jr.
Director; President, The Japan Society, Inc.
William H. Luers
Director; President, Metropolitan Museum of Art
Daniel Pierce*
Director and Vice President
Robert G. Stone, Jr.
Director; Chairman of the Board and Director, Kirby Corporation
Robert W. Lear
Honorary Director; Executive-in-Residence, Visiting Professor,
Columbia University Graduate School of Business
Jerard K. Hartman*
Vice President
Thomas W. Joseph*
Vice President
Douglas M. Loudon*
Vice President
Gerald J. Moran*
Vice President
Cornelia M. Small*
Vice President
David S. Lee*
Vice President and Assistant Treasurer
Thomas F. McDonough*
Vice President and Secretary
Pamela A. McGrath*
Vice President and Treasurer
Edward J. O'Connell*
Vice President and Assistant Treasurer
Juris Padegs*
Vice President and Assistant Secretary
Kathryn L. Quirk*
Vice President and Assistant Secretary
Coleen Downs Dinneen*
Assistant Secretary
*Scudder, Stevens & Clark, Inc.
29
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT PRODUCTS AND SERVICES
- --------------------------------------------------------------------------------
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)++
-----------------------------------------------------------------------------------------------------------------
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.
30
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
HOW TO CONTACT SCUDDER
- --------------------------------------------------------------------------------
<C> <C>
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 Institutional Funds,* funds
cash management service for designed to meet the broad
corporations, non-profit investment management and
organizations and trusts that uses service needs of banks and
certain portfolios of Scudder Fund, other institutions, call
Inc.* ($100,000 minimum), call 1-800-854-8525.
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.
31
</TABLE>
<PAGE>
Celebrating Over 75 Years of Serving Investors
- --------------------------------------------------------------------------------
Established in 1919 by Theodore Scudder, Sidney Stevens, and F. Haven
Clark, Scudder, Stevens & Clark was the first independent investment counsel
firm in the United States. Since its birth, Scudder's pioneering spirit and
commitment to professional long-term investment management have helped shape the
investment industry. In 1928, we introduced the nation's first no-load mutual
fund. Today we offer 36 pure no load(TM) funds, including the first
international mutual fund offered to U.S. investors.
Over the years, Scudder's global investment perspective and dedication to
research and fundamental investment disciplines have helped 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.
