Scudder
Emerging Markets
Income Fund
Fund Profile
January 1, 1996
Scudder wants you to make informed investment decisions. This Fund Profile
contains key information about Scudder Emerging Markets Income Fund. More
details appear in the Fund's accompanying prospectus. Please read it carefully
before you invest. If you have any questions, please call 1-800-225-2470.
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Scudder Emerging Markets Income Fund
1. What Are The Fund's Objectives?
Scudder Emerging Markets Income Fund seeks high current
income. Its secondary objective is long-term capital
appreciation.
2. What Does The Fund Invest In?
The Fund invests primarily (at least 65% of assets) in
high-yield/high risk debt securities issued by governments
and corporations in emerging markets. These securities
generally are rated below investment-grade.
- The Fund may focus its investments in countries in Latin
America.
- The Fund's assets are invested primarily in U.S.
dollar-denominated income-bearing securities issued by
governments or related entities and corporations.
- The weighted average maturity of the Fund's portfolio
will be actively managed and will vary from period to
period.
3. What Are The Risks Of Investing In The Fund?
Emerging market securities can be more volatile and less
liquid than securities in more developed markets. Foreign
securities often have less publicly available information
and are subject to different regulations than domestic
securities. Political events, changes in the perceived
creditworthiness of issuers, fluctuating national interest
rates, foreign taxes and movements in foreign currencies
will affect the value of the Fund's holdings, which
determine the Fund's share price. Consequently, the Fund's
share price and yield are likely to vary from day to day.
You incur principal risk when you invest because your
shares, when sold, may be worth more or less than what you
paid for them.
Because it is non-diversified, the Fund may invest in a
small number of issuers, which will subject it to greater
market and credit risk than a diversified fund.
Furthermore, the Fund's holdings in securities rated below
investment-grade (i.e., junk bonds) carry a greater risk
of default and more price volatility than securities rated
investment-grade or above.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking high
current income and:
- plan to hold your investment for several years,
- can tolerate fluctuations in share price, and
- have or plan to have other investments for the benefit
of diversification.
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5. What Are The Fund's Expenses And Fees?
There are two kinds of expenses that a shareholder may
incur, directly or indirectly, by investing in a mutual
fund. These types of expenses, as they relate to Scudder
Emerging Markets Income Fund, are:
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<S> <C>
Shareholder transaction expenses -- Annual Fund operating expenses
fees charged directly to your account (after expense maintenance) --
for various transactions. fees paid by the Fund before it
distributes its net investment income,
expressed as a percentage of the Fund's
Sales Commission None average daily net assets. Figures below
Commissions to Reinvest None are for the fiscal year ended October 31,
Dividends 1994, during which Scudder maintained the
Redemption Fee None total annualized expenses of the Fund at
Exchange Fee None not more than 1.50% of average daily net
assets. Had Scudder not done so, expenses
would have amounted to 2.14%, including
1.00% for management fees. Scudder will
continue this expense maintenance until
February 29, 1996.
Investment management fee 0.36%
12b-1 fees None
Other expenses 1.14%
----
Total Fund operating expenses 1.50%
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Example: Assuming a 5% annual return and One Year $15
redemption at the end of each period, the Three Years $47
total expenses relating to a $1,000 Five Years $82
investment would be: Ten Years $179
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This example assumes reinvestment of all dividends and
distributions and that the total Fund operating expenses
listed above 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. Please note that there is a $5 service fee if
you request redemption proceeds via wire.
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6. How Has The Fund Performed Historically?
This chart shows how the Fund has performed since it
commenced operations on December 31, 1993, assuming
reinvestment of all distributions. Performance is
historical and may not be indicative of future results.
Total return and principal value will fluctuate. The
Fund's 30-day net annualized SEC yield on December 31,
1995 was 12.04%.
Total return for the years
ended December 31:
1994 1995
---- ----
-8.06% 19.48%
One Year Life of Fund
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The Fund's Average Annual Total Return
for the period ended December 31, 1995 19.48% 4.98%
7. Who Manages The Fund?
The Fund's investment adviser is Scudder, Stevens & Clark,
Inc., a leading provider of U.S. and international
investment management for clients throughout the world.
8. How Can I Invest?
To make it easy for you to open an account, you may invest
by mail, phone, fax, or in person. The minimum initial
investment is only $1,000. Thereafter, additional
investments may be made for as little as $100. You may
also exchange shares free of charge within the Scudder
Family of Funds.
9. How Can I Redeem Shares?
You may redeem shares at the current share price on any
business day by telephone, fax, or mail.
10. When Are Distributions Made?
The Fund typically makes dividend distributions in April,
July, October, and December. Capital gain distributions,
if any, will be made in December. You may elect to receive
distributions in cash or have them reinvested in
additional shares of the Fund.
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11. What Services Does Scudder Provide?
As a shareholder, you'll enjoy:
- professional service from representatives who can answer your questions
and execute your transactions
- automated toll-free touchtone access to account information, share
prices and yields, and to perform transactions
- Scudder's quarterly shareholder newsletter, At the Helm
- regular, informative reports about the performance of your Fund
