Scudder
Global
Fund
Annual Report
June 30, 1996
Pure No-Load(TM) Funds
For investors seeking long-term growth of capital from a professionally managed
portfolio consisting primarily of U.S. and foreign common stocks.
A pure no-load(TM) fund with no commissions to buy, sell, or exchange shares.
<PAGE>
Table of Contents
2 In Brief
3 Letter from the Fund's Chairman
4 Performance Update
5 Portfolio Summary
6 Portfolio Management Discussion
9 Investment Portfolio
16 Financial Statements
19 Financial Highlights
20 Notes to Financial Statements
23 Report of Independent Accountants
24 Tax Information
25 Officers and Directors
26 Investment Products and Services
27 How to Contact Scudder
In Brief
Scudder Global Fund provided a 16.65% total return for the fiscal year ended
June 30, 1996, compared with 18.44% for the unmanaged Morgan Stanley Capital
International World Index.
We now feel that the restructuring of industries under the umbrella of high
stock prices has become excessively fashionable and is less fertile ground for
exploration of stock ideas.
We are exploring a different approach to emerging market investments. Instead of
focusing on the countries as the important variable, we are looking at their
companies in terms of their ability to be among the world's low-cost producers.
2 - SCUDDER GLOBAL FUND
<PAGE>
Letter From the Fund's Chairman
Dear Shareholders,
We hope you enjoy our newly redesigned shareholder report. The new format,
which is being implemented on a test basis with select Scudder funds, is
designed to enhance the attractiveness and readability of the reports. Let us
know what you think.
In this era of electronic information we have also taken a look at our
short-form quarterly reports, which you generally receive two or more weeks
after the end of your fund's first and third fiscal quarters. Going forward, in
lieu of these printed reports, portfolio information will be made available on a
more timely basis -- each month, in most cases -- through Scudder's Web site
(http://funds.scudder.com) and SAIL, Scudder's automated information line
(1-800-343-2890). Of course, you may also call a Scudder Investor Relations
representative for performance and portfolio information, Monday through Friday,
8 a.m. through 8 p.m., eastern time.
Turning to Scudder Global Fund, we are pleased to report on the fiscal year
ended June 30, 1996. The Fund provided a total return of 16.65% for the 12-month
period, a time during which the U.S. outpaced most other markets despite
conflicting signals about economic growth and corporate profits. The Fund's
portfolio management team views the marketplace as a single global entity and
seeks stocks of those companies best positioned to benefit in the global
economy. We believe Scudder Global Fund will continue its tradition of rewarding
investors over time through the intelligent application of its unique investment
approach, which relies on the identification of global themes rather than the
pursuit of specific markets.
Please do not hesitate to call an Investor Relations representative at
1-800-225-2470 if you have any questions regarding Scudder Global Fund. Page 27
contains more information on how to contact us.
Sincerely,
/s/Daniel Pierce
Daniel Pierce
Chairman,
Scudder Global Fund
3 - SCUDDER GLOBAL FUND
<PAGE>
PERFORMANCE UPDATE as of June 30, 1996
- ----------------------------------------------------------------
FUND INDEX COMPARISONS
- ----------------------------------------------------------------
Total Return
Period Growth --------------
Ended of Average
6/30/96 $10,000 Cumulative Annual
- --------------------------------------
SCUDDER GLOBAL FUND
- --------------------------------------
1 Year $11,665 16.65% 16.65%
5 Year $18,616 86.16% 13.23%
Life of
Fund* $32,239 222.39% 12.49%
- --------------------------------------
MSCI World Index
- --------------------------------------
1 Year $11,844 18.44% 18.44%
5 Year $17,583 75.83% 11.94%
Life of
Fund* $28,166 181.66% 11.01%
*The Fund commenced operations on July 23, 1986.
Index comparisons begin July 31, 1986.
- -----------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- -----------------------------------------------------------------
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 $10,000
'87 $12,850
'88 $12,286
'89 $15,223
'90 $18,268
'91 $17,318
'92 $19,758
'93 $22,417
'94 $25,329
'95 $27,638
'96 $32,239
MSCI WORLD INDEX
Year Amount
- ----------------------
7/3186 $10,000
'87 $14,131
'88 $13,983
'89 $15,728
'90 $16,843
'91 $16,019
'92 $16,695
'93 $19,492
'94 $21,488
'95 $23,781
'96 $28,166
The 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 an, 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> <C>
1987* 1988 1989 1990 1991 1992 1993 1994 1995 1996
-------------------------------------------------------------------------------
NET ASSET VALUE... $15.42 $14.47 $17.64 $20.36 $18.06 $19.56 $21.63 $23.93 $25.64 $28.73
INCOME
DISTRIBUTIONS.. $ - $ .06 $ .14 $ .20 $ .37 $ .31 $ .16 $ .24 $ .11 $ .25
CAPITAL GAINS
DISTRIBUTIONS..... $ - $ .25 $ .08 $ .55 $ .83 $ .66 $ .34 $ .26 $ .34 $ .84
FUND TOT
RETURN (%)........ 28.50 -4.45 23.90 20.00 -5.20 14.09 13.45 12.99 9.11 16.65
INDEX TOTAL
RETURN (%)........ 41.31 -1.05 12.48 7.09 -4.90 4.22 16.75 10.23 10.67 18.44
</TABLE>
All performance is historical, assumes reinvestment of all dividends and
capital gains, and is not indicative of future results.
Investment return and principal value will fluctuate, so an investor's
shares, when redeemed, may be worth more or less than when purchased. If the
Advisor had not 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 - SCUDDER GLOBAL FUND
<PAGE>
PORTFOLIO SUMMARY as of June 30, 1996
- ---------------------------------------------------------------------------
GEOGRAPHICAL (Excludes Cash Equivalents & Debt)
- ---------------------------------------------------------------------------
Europe 44%
U.S.& Canada 26%
Pacific Basin 13%
Japan 10%
Latin America 3%
Other 4%
- --------------------------------------
100%
- --------------------------------------
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
In emerging markets, the Fund's focus is turning to companies
with the ability to be among the world's low-cost producers rather
than those in specific countries.
- --------------------------------------------------------------------------
SECTORS (Excludes Cash Equivalents & Debt)
- --------------------------------------------------------------------------
Manufacturing 22%
Financial 16%
Metals & Minerals 11%
Technology 7%
Utilities 7%
Health 6%
Consumer Staples 6%
Durables 5%
Service Industries 5%
Other 15%
- ------------------------------------------
100%
- ------------------------------------------
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
Our emphasis on metals and minerals reflects our belief that prices
for gold and platinum are at an historic low in yen terms.
- --------------------------------------------------------------------------
10 LARGEST EQUITY HOLDINGS
(17% OF PORTFOLIO)
- --------------------------------------------------------------------------
1. SAP AG
German computer software manufacturer
2. CIBA-GEIGY AG
Pharmaceutical company in Switzerland
3. HOECHST AG
German chemical producer
4. RTZ CORP., PLC
Mining and finance company in Switzerland
5. SANDOZ LTD. AG
Pharmacuetical company in Switzerland
6. VEBA AG
Electric utility, distributor of oil and chemicals in Germany
7. BROWN, BOVERI & CIE. AG
Manufacturer of electrical equipment in Switzerland
8. WOODSIDE PETROLEUM LTD.
Major oil and gas producer in Australia
9. INTERNATIONALE-NEDERLANDED GROEP CVA
Banking and insurance holding company in the Netherlands
10. ASTRA AB
Pharmaceutical company in Sweden
Hoechst is an example of our focus on German companies that are restructuring
and joining the global capital markets.
- -----------------------------------------------------------------------------
For more complete details about the Fund's investment portfolio,
see page 9. A monthly Investment Portfolio Summary and quarterly Portfolio
Holdings are available upon request.
5 - SCUDDER GLOBAL FUND
<PAGE>
Portfolio Management Discussion
Dear Shareholders,
Scudder Global Fund provided a 16.65% total return for the fiscal year ended
June 30, 1996, compared with 18.44% for the unmanaged Morgan Stanley Capital
International (MSCI) World Index. For the calendar-year to date, the comparable
returns were 6.37% and 7.08%, respectively, and returns for the quarter were
1.56% and 2.90%.
The MSCI World Index finished the period at an all time high. It has risen
almost continuously since the end of 1994 with the U.S. market leading the way.
U.S. mutual fund buyers have led demand for stocks, stimulated by low returns on
cash and a desire to build wealth for retirement. Corporations have also been
buying their own stock. This favorable environment has also been enhanced by
lenders' willingness to finance consumption and Japanese investors' willingness
to buy the U.S. government's debt. U.S. investors' appetite for common stocks
has spilled over into foreign markets, especially Japan and "emerging markets."
But European and Japanese investors are not nearly so optimistic about the
future, and have acted as a damper on their stock markets. Our research suggests
that they dwell more on the problems of their own economies and view the U.S. as
enjoying little more than a stock market mania. In Europe, the political agenda
is dominated by the Franco-German desire to implement a common currency and the
rising specter of pension burdens. Both imply tight fiscal budgets, which are
evident on a continuing basis. The corporate sector has little choice but to
look for opportunities abroad and press ahead with cost cutting at home. In
Japan, there is little evidence to suggest that the government has devised any
strategy but to rely on the passage of time to heal their broken economic
system. Policy continues to be largely ineffective and the confidence of the
man-on-the-street is the essential element in the evolution of that economy and
its financial markets.
IN PRINTED DOCUMENT, BAR CHART INSERTED HERE
BAR CHART TITLE: U.S. Leads World Economy, Markets
CHART PERIOD: (Cumulative total returns for regional stock markets,
1/1/94 to 6/30/96)
CHART DATA:
North
America Japan Europe
------- ----- ------
48.67% 22.91% 29.57%
The United States is leading the world economy, and geography seems
unlikely to be a very useful diversification mechanism in the near future.
Focusing on Solid Picks
Given High Overall Prices
The day-to-day management of Scudder Global Fund has been predicated on the
assumption that stocks are expensive. The corollary is that increasingly we look
for the solid rather than the exciting. We look to the longer term rather than
the medium term and put cash to work on a gradual basis. This is not a veiled
prediction of an imminent crash, but merely the expectation that, given today's
prices, returns will be less generous than in the past and we should be
increasingly price-sensitive.
6 - SCUDDER GLOBAL FUND
<PAGE>
Core Portfolio Themes
Remain Intact
Our portfolio themes are unchanged, although we are continually adjusting the
lens through which we focus on potential portfolio holdings. For example, we now
feel that the restructuring of industries under the umbrella of high stock
prices has become excessively fashionable and is less fertile ground for
exploration of stock ideas. Its natural consequence: industrial concentration
and reduced competition are new areas of interest. Another area of increased
interest to us is the industrial gases industry, which has the appeal of a
stable price structure, growth potential from both new technology and emerging
markets, and reasonable valuations. Lastly, we are exploring a different
approach to emerging market investments. Instead of focusing on the countries as
the important variable, we are looking at their companies in terms of their
ability to be among the world's low-cost producers. Until these ideas are
formalized, our themes remain the following:
The Last of the Light Side Restructurings -- Corporations in the United States,
United Kingdom, Canada, and Australia are taking advantage of buoyant capital
markets to sell their loss-making activities. Portfolio holdings include
Canadian Pacific and Foster's Brewing.
The First of the Dark Side Restructurings -- German companies and most recently
their French counterparts are restructuring and joining the global capital
markets. Examples are Daimler-Benz and Hoechst.
The Life Insurers -- Individuals have lost faith in the governments that
promised to provide their pension benefits. They have higher confidence in
private pensions. AEGON, I nternational-Nederlanden Groep, and Skandia are
current portfolio holdings.
Aging population: Healthcare -- Pharmaceutical products and health providers
worldwide will continue to thrive. Examples: Astra, Ciba-Geigy, and Sandoz.
The Installed Base and Standard Setters -- Companies with new technologies which
secure large market shares and set the standards so other players must conform
to their strategies. Portfolio examples are Reuters and First Data.
Yen End Game -- Earnings of blue-chip exporters in Japan have been and will
continue to benefit from a weaker yen.
Gold/Platinum -- Prices in yen terms are at historic lows. Demand for gold and
platinum as jewelry and/or store of value are very likely underestimated,
particularly in the Far East.
Emerging Markets -- It is in the First World's interest for some new economies
to emerge. Some will succeed but others will fail. Few will achieve
self-sustaining growth and others will merely become subcontractors and
represent cyclical opportunities only. The portfolio has invested about 4.2% in
Korea as a consequence of this theme.
The Reinsurers -- The improved profitability of the sector is recognized but is
being sustained at higher levels and valuations are reasonable.
Global Stock Market
Versus Global Economy:
Who Is Leading Whom?
The 2 1/2 by 2 1/2 world (2.5% GNP growth, 2.5% inflation) of which many
economists talk seems ideal for investors. Certainly anything else would cause
consternation. However, these are averages which obscure a tumultuous period of
change in the way the world creates wealth and in the regions and industries in
which wealth is created and destroyed.
7 - SCUDDER GLOBAL FUND
<PAGE>
The essential point is that in a deregulated environment, global capital markets
have convincingly replaced national governments in the process of resource
allocation. It is the efficiency generated from the reallocation process that is
the heart of global economic growth. It is in turn this economic growth which
facilitates one country running trade deficits or budget deficits and others
being in a position to finance them. It also lubricates an economy, like that of
the United States, which has an almost record low unemployment rate even as
major corporations are laying off employees. An important caveat: Should for any
reason all important parts of the world not share in the benefits, then they
will not be interested in the free flow of resources, and the spell will be
broken.
A final word on the role of the global stock market. The circulation of capital
is dependent on the smooth workings of the global stock market. So important has
the market become relative to other sources of capital that any major decline
will have a strong impact on growth. We believe that the market is leading the
economy, not the reverse. For these reasons, our focus remains specific
opportunities rather than general levels of economic growth.
Sincerely,
Your Portfolio Management Team
/s/William E. Holzer /s/Nicholas Bratt
William E. Holzer Nicholas Bratt
/s/Alice Ho
Alice Ho
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.
8 - SCUDDER GLOBAL FUND
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO AS OF JUNE 30, 1996
<CAPTION>
PRINCIPAL MARKET
AMOUNT($) VALUE($)
- -----------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 0.6%
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Repurchase Agreement with Donaldson, Lufkin & Jenrette
dated 6/28/96 at 5.45%, to be repurchased at $7,612,456
on 7/1/96, collateralized by a $5,104,000 U.S. Treasury
Bond, 13.875%, 5/15/11 (Cost $7,609,000) ..................... 7,609,000 7,609,000
----------
BONDS 3.7%
- -----------------------------------------------------------------------------------------------
U.S. Treasury Note, 5.625%, 6/30/97 (Cost $49,839,844) .......... 50,000,000 49,922,000
----------
CONVERTIBLE BONDS 1.2%
- -----------------------------------------------------------------------------------------------
CANADA 0.5%
Teck Corp., 3.75%, 7/15/06 (Major mining complex) ............... 6,657,000 6,790,140
KOREA 0.3% ---------
Cheil Food and Chemical Co., Ltd., 3%, 12/31/06, put date
12/31/96 (Leading sugar refiner and major integrated
food processor) .............................................. 625,000 753,125
Ssangyong Cement Industrial Co., Ltd., 3%, 12/31/05, put
date 11/14/96 (Major cement producer) ........................ 2,700,000 3,307,500
Ssangyong Oil Refining Co., Ltd., 3.75%, 12/31/08, put
date 7/20/01 (Major oil refiner) ............................. 650,000 666,250
----------
4,726,875
----------
MEXICO 0.4%
Empresa ICA Sociedad Controladora S.A., 5%,
3/15/04 (Construction company) ............................... 8,200,000 5,227,500
- -----------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS (Cost $18,501,666) ...................... 16,744,515
- -----------------------------------------------------------------------------------------------
SHARES
- -----------------------------------------------------------------------------------------------
PREFERRED STOCKS 3.9%
- -----------------------------------------------------------------------------------------------
GERMANY
RWE AG (Producer and marketer of petroleum and
chemical products) ........................................... 589,435 18,137,654
SAP AG (Computer software manufacturer) ......................... 182,200 27,038,293
Spar Handels AG (Food and beverage wholesaler
and retailer) ................................................ 30,000 8,363,469
- -----------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS (Cost $25,123,759) ....................... 53,539,416
- -----------------------------------------------------------------------------------------------
COMMON STOCKS 90.6%
- -----------------------------------------------------------------------------------------------
ARGENTINA 0.5%
Electricidad Argentina S.A. "A" (ADR)
(Electric utility) (c) ....................................... 253,143 3,544,002
Perez Companc S.A. "B" (ADR)
(Industrial conglomerate)* ................................... 44,200 582,887
YPF S.A. "D" (ADR) (Petroleum company) .......................... 134,100 3,017,250
----------
7,144,139
----------
AUSTRALIA 3.8%
Broken Hill Proprietary Co. Ltd. (Petroleum,
minerals and steel) .......................................... 876,470 12,101,763
Coca Cola Amatil Ltd. (Soft drink bottler
and distributor) ............................................. 1,083,002 12,025,724
Foster's Brewing Group, Ltd. (Leading brewery) .................. 4,178,400 7,191,077
</TABLE>
The accompanying notes are an integral part of the financial statements.
- -------------------------------------------------------------------------------
Pure No-Load[Trademark] Funds Pure No-Load[Trademark] Funds Pure No-Load
- -------------------------------------------------------------------------------
9 - SCUDDER GLOBAL FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE($)
- -------------------------------------------------------------------------------------------
<S> <C> <C>
Woodside Petroleum Ltd. (Major oil and gas producer) ....... 3,339,900 20,052,413
----------
51,370,977
----------
AUSTRIA 0.3%
Flughafen Wien AG (Operator of terminals and facilities
at Vienna International Airport) ........................ 61,900 4,236,344
----------
BERMUDA 2.0%
Mid Ocean Limited* (Property and casualty
insurance company) ...................................... 378,150 15,504,150
PartnerRe Holdings Ltd. (Property and casualty
insurance company) ...................................... 399,100 11,923,113
----------
27,427,263
----------
BRAZIL 2.0%
Aracruz Celulose S.A. (ADR) (Producer of
eucalyptus kraft pulp) .................................. 1,210,800 11,502,600
Centrais Eletricas Brasileiras S/A "B" (pfd.)
(Electric utility) ...................................... 30,401,230 8,689,093
Companhia Energetica de Minas Gerais (pfd.)
(Electric power utility) ................................ 126,000,000 3,350,296
Companhia Energetica de Sao Paulo (pfd.)
(Electric utility) ...................................... 70,200,000 2,446,846
Companhia Siderurgica Belgo-Mineira (Manufacturer
of steel wires and wire products) ....................... 10,591,625 710,847
Light Participacoes SA (Electric utility) (c) .............. 8,447,000 286,011
----------
26,985,693
----------
CANADA 3.9%
Alcan Aluminium Ltd. (Manufacturer of aluminum
and finished products) .................................. 197,026 5,996,287
Barrick Gold Corp. (CN) (Gold exploration and
production in North and South America) .................. 222,200 6,027,175
Barrick Gold Corp. ......................................... 218,000 5,916,059
Cambior, Inc. (Medium-sized gold producer with
a major mine in Guyana) ................................. 314,900 4,163,300
Canadian Pacific Ltd. (Ord.) (Transportation and
natural resource conglomerate) .......................... 869,766 19,048,528
Placer Dome Inc. (CN) (Gold, silver and copper
mining company) ......................................... 240,300 5,746,783
Placer Dome Inc. ........................................... 236,000 5,634,500
----------
52,532,632
----------
CHINA 1.1%
American Standard China "B" (Plumbing products) (c) ........ 526 5,260,000
Huaneng Power International, Inc. Series N (ADR)
(Developer and operator of large coal-fired power
plants) ................................................. 551,500 9,858,062
----------
15,118,062
----------
DENMARK 1.0%
FLS Industries "B" (Machinery for cement and allied
industries; manufacturer and shipper of cement) ......... 138,500 13,948,110
----------
FRANCE 0.7%
Alcatel Alsthom (Manufacturer of transportation,
telecommunication and energy equipment) ................ 35,525 3,100,690
Compagnie Financiere de Paribas
(Finance and investment company) ........................ 119,294 7,049,692
----------
10,150,382
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
- -------------------------------------------------------------------------------
Pure No-Load[Trademark] Funds Pure No-Load[Trademark] Funds Pure No-Load
- -------------------------------------------------------------------------------
10 - SCUDDER GLOBAL FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE($)
- ---------------------------------------------------------------------------------------
<S> <C> <C>
GERMANY 11.5%
Bayer AG (Leading chemical producer) .................... 394,790 13,952,240
Bayerische Vereinsbank Girozentrale
(Commercial bank) .................................... 441,000 12,381,287
Daimler-Benz AG (Automobile and truck manufacturer)* .... 24,830 13,297,413
Daimler-Benz AG Rights (expiration 7/5/96)* ............. 24,830 3,428
Hoechst AG (Chemical producer) .......................... 781,250 26,505,687
Mannesmann AG (Bearer) (Diversified construction
and technology company) .............................. 47,812 16,535,678
Muenchener Rueckversicherungs AG
(Insurance company) .................................. 2,446 4,084,976
Muenchener Rueckversicherungs AG (Registered) ........... 5,619 11,600,802
Schering AG (Pharmaceutical and chemical producer) ...... 179,000 13,028,667
Siemens AG (Leading electrical engineering and
electronics company) ................................. 180,400 9,643,316
VEBA AG (Electric utility, distributor of
oil and chemicals) ................................... 445,000 23,661,746
VIAG AG (Provider of electrical power and natural
gas services, aluminum products, chemicals,
ceramics and glass) .................................. 22,000 8,780,327
VIAG AG (New) (d) ....................................... 6,284 2,425,346
-----------
155,900,913
-----------
GHANA 0.4%
Ashanti Goldfields Co., Ltd. (ADS)
(Leading gold producer) .............................. 307,400 6,071,150
-----------
HONG KONG 1.4%
Hutchison Whampoa, Ltd. (Container terminal and
real estate company) ................................. 1,446,000 9,097,336
Jardine Matheson Holdings, Ltd. (Conglomerate: real
estate, merchandising and engineering) ............... 1,004,296 7,381,576
Television Broadcasts, Ltd. .............................
(Television broadcasting) ............................ 608,000 2,281,743
-----------
18,760,655
-----------
HUNGARY 0.3%
First Hungary Fund (Investment company) (c) ............. 3,619 3,226,881
-----------
INDONESIA 0.9%
Asia Pulp & Paper Co., Ltd. (ADR)
(Producer of pulp and paper)* ........................ 186,200 2,280,950
HM Sampoerna (Foreign registered) (Tobacco company) ..... 411,500 4,685,177
Indah Kiat Pulp & Paper (Producer of pulp and paper) .... 400,000 390,977
Indah Kiat Pulp & Paper (Foreign registered) ............ 3,530,375 3,450,742
Indah Kiat Pulp & Paper Warrants (expiration 4/13/01)* .. 348,525 175,947
Pabrik Kertas Tjiwi Kimia (Foreign registered)
(Operator of a pulp and paper factory) ............... 781,000 796,939
-----------
11,780,732
-----------
JAPAN 10.0%
Bridgestone Corp. (Leading automobile
tire manufacturer) ................................... 824,000 15,746,903
Canon Inc. (Leading producer of visual image
and information equipment) ........................... 704,000 14,676,725
Hitachi Ltd. (General electronics manufacturer) ......... 1,278,000 11,919,353
</TABLE>
The accompanying notes are an integral part of the financial statements.
- -------------------------------------------------------------------------------
Pure No-Load[Trademark] Funds Pure No-Load[Trademark] Funds Pure No-Load
- -------------------------------------------------------------------------------
11 - SCUDDER GLOBAL FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE($)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Hitachi Metals, Ltd. (Major producer of
high-quality specialty steels) ........................... 148,000 1,705,116
Iino Kaiun Kaisha, Ltd. (Operator of tankers
and specialized carriers) ................................ 1,001,000 5,427,632
Kyocera Corp. (Leading ceramic package manufacturer) ........ 191,000 13,534,952
Matsushita Electric Industrial Co., Ltd.
(Leading manufacturer of consumer electronic products) .. 788,000 14,698,670
NSK Ltd. (Leading manufacturer of bearings and
other machinery parts) ................................... 794,000 6,018,617
Nichiei Co., Ltd. (Finance company for small-
and medium-sized firms) .................................. 165,000 11,013,578
SMC Corp. (Leading maker of pneumatic equipment) ............ 43,000 3,334,156
Sony Corp. (Consumer electronic products manufacturer) ...... 144,000 9,493,348
Sumitomo Metal Industries, Ltd. (Leading integrated
crude steel producer) .................................... 4,124,000 12,670,086
Sumitomo Metal Mining Co., Ltd. (Leading gold, nickel
and copper mining company) ............................... 1,690,000 14,664,746
-----------
134,903,882
-----------
KOREA 3.9%
Baik Yang Co. (Leading maker of under garments) ............. 10,000 1,232,742
Cheil Food and Chemical Co., Ltd. (Korea's largest
sugar refiner and major integrated food processor) ....... 9 588
Daewoo Heavy Industries Ltd. (Leading manufacturer of
heavy industrial equipment) .............................. 334,374 2,835,914
Daewoo Securities Co., Ltd. (Brokerage and
financial services)* ..................................... 115,516 2,691,386
Hanil Bank (Major commercial bank) .......................... 121,464 1,211,346
Korea Asia Fund (IDR) (Investment company) (b) .............. 138 units 1,656,000
Korea Electric Power Co.* (Electric utility) ................ 25,000 862,919
Korea Electric Power Co. (ADR) .............................. 353,000 8,560,250
Korea Equity Trust (IDR) (Investment company) (b) ........... 140 units 1,435,000
Korea Express Co., Ltd. (General freight
transport company) ....................................... 98,545 3,583,675
Korea Long Term Credit Bank* (Major commercial bank) ........ 49,799 1,289,175
Korea Mobile Telecom (Mobile telecommunication
company) (c) ............................................. 3,850 4,738,462
Korea Zinc Co. (Zinc mining and manufacturing) .............. 80,000 1,834,320
Lotte Confectionery Co., Ltd.
(Major producer of snack food) ........................... 26,390 2,927,885
Pang-Rim Spinning Co., Ltd. (Leading manufacturer of
cotton-polyester spun fabrics) ........................... 25,000 1,232,742
Pohang Iron & Steel Co., Ltd.
(Leading steel producer) (c) ............................. 7,030 577,852
Samsung Electromechanics Co., Ltd.
(Major electronics parts company) ........................ 19,761 708,882
Samsung Electromechanics Co., Ltd. (New) (d)* ............... 4,945 162,151
Samsung Electronics Co., Ltd.
(Major electronics manufacturer) ......................... 48 4,030
Samsung Electronics Co., Ltd. (GDS) (1/2 voting) ............ 8,850 453,563
Samsung Electronics Co., Ltd. (GDS) (Voting)(New) (d) ....... 6,934 311,163
Samsung Electronics Co., Ltd. (New)* ........................ 14 1,113
Samsung Electronics Co., Ltd. (GDS)(Non-voting) ............. 267,946 6,497,691
Samsung Electronics Co., Ltd. (GDS)
(Non-voting)(New) (d) .................................... 80,752 1,736,168
</TABLE>
The accompanying notes are an integral part of the financial statements.
- -------------------------------------------------------------------------------
Pure No-Load[Trademark] Funds Pure No-Load[Trademark] Funds Pure No-Load
- -------------------------------------------------------------------------------
12 - SCUDDER GLOBAL FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE($)
- -------------------------------------------------------------------------------
<S> <C> <C>
Samsung Heavy Industries Co., Ltd.
(Machinery manufacturer) ........................ 106,906 1,660,522
Samsung Heavy Industries Co., Ltd. (New) (d) ...... 10,369 146,996
Samsung Securities (Securities company) ........... 40,000 1,232,742
Samsung Securities Rights (expiration
7/23/96) (c)* ................................... 6,400 59,172
Seoul International Trust (Investment
company) (b) .................................... 43 units 1,784,500
Ssangyong Cement Industrial Co., Ltd.
(Major cement company) .......................... 37,206 889,788
----------
52,318,737
----------
NETHERLANDS 2.8%
AEGON Insurance Group NV (Insurance company) ...... 404,492 18,641,496
Internationale-Nederlanden Groep CVA
(Banking and insurance holding company) ......... 653,815 19,512,860
----------
38,154,356
----------
NEW ZEALAND 0.8%
Telecom Corp. of New Zealand
(Telecommunication services) .................... 2,600,000 10,947,459
----------
SINGAPORE 0.3%
Jardine Strategic Holdings Ltd. (Conglomerate:
auto distribution, food retailing, property
investment and development) ..................... 1,008,000 3,225,600
----------
SOUTH AFRICA 1.3%
Impala Platinum Holdings (ADR)
(Leading platinum producer) ..................... 468,500 6,793,250
Malbak Ltd. (GDR) (Diversified holding company
involved in food, packaging and paper,
healthcare, consumer products and investments) .. 962,755 4,693,431
Rustenburg Platinum Holdings, Ltd. (ADR)
(Leading platinum producer)* .................... 77,419 1,219,349
Sasol Limited (Producer of coal and crude oil) .... 451,096 4,840,979
----------
17,547,009
----------
SWEDEN 4.2%
Astra AB "A" (Free) (Pharmaceutical company) ...... 438,050 19,388,014
S.K.F. AB "B" (Free)*
(Manufacturer of roller bearings) ............... 676,300 16,090,219
Skandia Foersaekrings AB (Free)
(Financial conglomerate) ........................ 511,300 13,554,857
Swedish Match AB (Leading producer of matches) .... 298,900 930,112
Volvo AB "B" (Free) (Automobile manufacturer) ..... 298,900 6,817,810
----------
56,781,012
----------
SWITZERLAND 8.4%
Brown, Boveri & Cie. AG (Bearer)
(Manufacturer of electrical equipment) .......... 17,915 22,183,274
Ciba-Geigy AG (Bearer) (Pharmaceutical company) ... 8,250 10,017,598
Ciba-Geigy AG (Registered) ........................ 13,735 16,754,689
Nestle SA (Registered) (Food manufacturer) ........ 9,621 10,997,407
Sandoz Ltd. AG (Registered)
(Pharmaceutical company) ........................ 21,640 24,770,500
Schindler Holdings AG (PC) (Leading elevator
and escalator manufacturer) ..................... 2,675 2,845,858
</TABLE>
The accompanying notes are an integral part of the financial statements.
- -------------------------------------------------------------------------------
Pure No-Load[Trademark] Funds Pure No-Load[Trademark] Funds Pure No-Load
- -------------------------------------------------------------------------------
13 - SCUDDER GLOBAL FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE($)
- -------------------------------------------------------------------------------------
<S> <C> <C>
Swiss Bank Corp. Warrants (Registered)
(expiration 6/30/00)* .............................. 6,345 20,809
Swiss Reinsurance (Registered) (Life, accident
and health insurance company) ...................... 11,750 12,077,551
Zurich Insurance Group (Registered)
(Insurance company) ................................ 50,750 13,842,939
-----------
113,510,625
-----------
TAIWAN 0.2%
Taiwan Semiconductor Manufacturing Co.
(Manufacturer of integrated circuits
and other semiconductor devices)* .................. 1,620,000 3,384,811
-----------
UNITED KINGDOM 8.7%
BOC Group PLC (Producer of industrial gases)* ........ 652,900 9,363,862
Carlton Communications PLC (Television post
production products and services) .................. 1,772,000 14,254,925
Grand Metropolitan PLC (Food and drink
producer and retailer) ............................. 1,417,720 9,401,341
Great Universal Stores PLC "A" (Catalog home shopping,
retailing, finance and property investment) ........ 677,600 6,876,864
London & Overseas Freighters (ADR)
(Operator of a fleet of oil tankers) ............... 140,900 1,796,475
Lonrho PLC (Widely diversified industrial
holding company) ................................... 900,000 2,585,745
PowerGen PLC (Electric utility) ...................... 1,400,134 10,197,974
RTZ Corp., PLC (Mining and finance company) .......... 1,764,714 26,117,926
Reuters Holdings PLC (International news agency) ..... 1,123,500 13,591,957
Shell Transport & Trading PLC
(Part owner of Royal Dutch Shell Co.) .............. 987,100 14,455,872
St. James's Place Capital PLC
(Money management and insurance) ................... 3,069,900 5,792,579
Waste Management International PLC*
(Waste collection and disposal services) ........... 599,100 3,349,448
-----------
117,784,968
-----------
UNITED STATES 20.2%
APL Ltd. (Ocean, rail and truck container
distribution and transportation) ................... 212,500 5,551,563
American Telephone & Telegraph Co.
(Telecommunication services and business systems) .. 185,400 11,494,800
Biogen Inc.* (Biotechnology research and development) 150,410 8,253,749
Boeing Co. (Manufacturer of jet airplanes) ........... 92,400 8,050,350
Charles Schwab Corp. (Discount brokerage services) ... 286,500 7,019,250
Destec Energy Inc. (Non-utility producer of
cogeneration and coal gasification power) .......... 479,000 6,107,250
EXEL, Ltd. (Provider of liability insurance) ......... 228,300 16,095,150
Enron Corp. (Major natural gas pipeline system) ...... 356,300 14,563,762
First Data Corp. (Credit-card processing services) ... 95,700 7,620,112
General Re Corp. (Property and casualty reinsurance) . 80,635 12,276,679
Homestake Mining Co.
(Major international gold producer) ................ 627,000 10,737,375
International Business Machines Corp. (Principal
manufacturer and servicer of business and computing
machines) .......................................... 151,420 14,990,580
J.P. Morgan & Co., Inc. (Commercial banking
and financial services) ............................ 76,322 6,458,749
</TABLE>
The accompanying notes are an integral part of the financial statements.
- -------------------------------------------------------------------------------
Pure No-Load[Trademark] Funds Pure No-Load[Trademark] Funds Pure No-Load
- -------------------------------------------------------------------------------
14 - SCUDDER GLOBAL FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE($)
- ----------------------------------------------------------------------------------------
<S> <C> <C>
LaFarge Corp. (Leading cement producer) .............. 739,100 14,966,775
Louisiana-Pacific Corp. (Producer of lumber,
plywood and pulp) .................................. 400,000 8,850,000
MBIA Inc. (Insurer of municipal bonds) ............... 202,650 15,781,369
National Semiconductor Corp.* (Manufacturer of
integrated circuits and transistors) ............... 346,100 5,364,550
Newmont Mining Corp. (International gold
exploration and mining company) .................... 256,400 12,659,750
Parker-Hannifin Group (Fluid control components) ..... 325,200 13,780,350
Policy Management Systems Corp. (Insurance
company software and services) ..................... 107,500 5,375,000
Public Service Co. of New Mexico* (Large electric
utility serving the southwest) ..................... 259,400 5,317,700
Thermo Electron Corp.* (Engineered industrial products
and environmental instruments) ..................... 121,500 5,057,438
Unicom Corp. (Electric utility in northern Illinois) . 250,000 6,968,750
United Technologies Corp. (Manufacturer of aerospace
equipment, climate control systems, and elevators) . 163,500 18,802,500
WMX Technologies Inc. (Solid and chemical waste
management services) ............................... 409,100 13,398,025
Xerox Corp. (Leading manufacturer of copiers
and duplicators) ................................... 329,850 17,646,975
-------------
273,188,551
-------------
VENEZUELA 0.0%
Venezolana de Prerreducidos Caroni C.A. (GDS)
(Manufacturer of steel pellets) .................... 62,160 334,110
- ----------------------------------------------------------------------------------------
TOTAL COMMON STOCKS (Cost $948,215,737) .............. 1,226,735,053
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $1,049,290,006) (a) 1,354,549,984
- ----------------------------------------------------------------------------------------
<FN>
* Non-income producing security.
(a) The cost for federal income tax purposes was $1,051,717,031. At June 30,
1996, net unrealized appreciation for all securities based on tax cost was
$302,832,953. This consisted of aggregate gross unrealized appreciation for
all securities in which there was an excess of market value over tax cost
of $333,339,027 and aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over market value of
$30,506,074.
(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, 1996, aggregated
$17,673,610. See Note A of the Notes to Financial Statements.
(d) New shares issued during 1996, eligible for a pro rata share of 1996
dividends.
See page 5 for sector breakdown.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
- -------------------------------------------------------------------------------
Pure No-Load[Trademark] Funds Pure No-Load[Trademark] Funds Pure No-Load
- -------------------------------------------------------------------------------
15 - SCUDDER GLOBAL FUND
<PAGE>
FINANCIAL STATEMENTS
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
AS OF JUNE 30, 1996
<S> <C>
ASSETS
- --------------------------------------------------------------------------------------------------
Investments, at market (identified cost $1,049,290,006) (Note A) .... $1,354,549,984
Cash ................................................................ 3,102
Foreign currency, at market (identified cost $4,021,113) ............ 4,051,037
Receivable on investments sold ...................................... 14,153,510
Receivable on Fund shares sold ...................................... 2,061,829
Dividends and interest receivable ................................... 4,070,399
Foreign taxes recoverable ........................................... 645,507
Net receivable on closed forward currency exchange contracts
(Note A) .......................................................... 17,604
Other assets ........................................................ 1,242
---------
Total assets ........................................................ 1,379,554,214
LIABILITIES
- --------------------------------------------------------------------------------------------------
Payable for investments purchased ................................... $ 9,039,855
Payable for Fund shares redeemed .................................... 1,081,228
Accrued management fee (Note C) ..................................... 1,087,620
Other accrued expenses (Note C) ..................................... 630,825
--------------
Total liabilities ................................................... 11,839,528
----------------------------------------------------------------------------------------
NET ASSETS, AT MARKET VALUE ......................................... $1,367,714,686
----------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------
Net assets consist of:
Undistributed net investment income ................................. $ 9,106,858
Net unrealized appreciation on:
Investments .................................................... 305,259,978
Foreign currency related transactions .......................... 8,908
Accumulated net realized gain ....................................... 53,123,352
Capital stock ....................................................... 476,065
Additional paid-in capital .......................................... 999,739,525
----------------------------------------------------------------------------------------
NET ASSETS, AT MARKET VALUE ......................................... $1,367,714,686
----------------------------------------------------------------------------------------
NET ASSET VALUE
- --------------------------------------------------------------------------------------------------
NET ASSET VALUE, offering and redemption price per share
($1,367,714,686 /47,606,518 shares of capital stock
--------------
outstanding, $.01 par value, 100,000,000 shares authorized) ...... $ 28.73
--------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
- -------------------------------------------------------------------------------
Pure No-Load[Trademark] Funds Pure No-Load[Trademark] Funds Pure No-Load
- -------------------------------------------------------------------------------
16 - SCUDDER GLOBAL FUND
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1996
<S> <C>
INVESTMENT INCOME
- -------------------------------------------------------------------------------------------------
Income:
Dividends (net of withholding taxes of $2,292,595) ............. $ 22,428,205
Interest ....................................................... 5,585,859
-------------
28,014,064
Expenses:
Management fee (Note C) ........................................ 12,360,809
Services to shareholders (Note C) .............................. 2,657,807
Custodian and accounting fees (Note C) ......................... 1,389,179
Directors' fees (Note C) ....................................... 51,183
Reports to shareholders ........................................ 516,350
Legal .......................................................... 18,948
Auditing ....................................................... 104,862
Federal and state registration ................................. 35,921
Other .......................................................... 129,963
-------------
17,265,022
----------------------------------------------------------------------------------
NET INVESTMENT INCOME 10,749,042
----------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT TRANSACTIONS
- -------------------------------------------------------------------------------------------------
Net realized gain (loss) from:
Investments .................................................... 77,612,311
Foreign currency related transactions .......................... (308,203)
-------------
77,304,108
Net unrealized appreciation (depreciation) during the period on:
Investments .................................................... 106,267,277
Foreign currency related transactions .......................... (40,778)
-------------
106,226,499
-------------
Net gain on investment transactions ............................ 183,530,607
----------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ........... $ 194,279,649
----------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
- -------------------------------------------------------------------------------
Pure No-Load[Trademark] Funds Pure No-Load[Trademark] Funds Pure No-Load
- -------------------------------------------------------------------------------
17 - SCUDDER GLOBAL FUND
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
YEARS ENDED JUNE 30
INCREASE (DECREASE) IN NET ASSETS 1996 1995
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income ................................ $ 10,749,042 $ 11,643,651
Net realized gain from investment transactions ....... 77,304,108 11,948,024
Net unrealized appreciation on investment transactions
during the period ................................ 106,226,499 72,766,161
-------------- --------------
Net increase in net assets resulting from operations . 194,279,649 96,357,836
-------------- --------------
Distributions to shareholders from:
Net investment income ($.25 and $.11 per
share, respectively) ............................. (11,338,078) (5,208,927)
Net realized gains from investment transactions
($.84 and $.34 per share, respectively) .......... (38,563,130) (16,100,320)
-------------- --------------
Fund share transactions:
Proceeds from shares sold ............................ 276,103,348 294,309,148
Net asset value of shares issued to shareholders in
reinvestment of distributions .................... 46,815,558 20,010,200
Cost of shares redeemed .............................. (267,766,187) (316,718,412)
-------------- --------------
Net increase (decrease) in net assets from
Fund share transactions .......................... 55,152,719 (2,399,064)
-------------- --------------
Increase in net assets ............................... 199,531,160 72,649,525
Net assets at beginning of period .................... 1,168,183,526 1,095,534,001
Net assets at end of period (including undistributed
net investment income of $9,106,858 and -------------- --------------
$9,361,946, respectively) ........................ $1,367,714,686 $1,168,183,526
-------------- --------------
OTHER INFORMATION
- ---------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN FUND SHARES
Shares outstanding at beginning of period ............ 45,559,445 45,787,687
-------------- --------------
Shares sold .......................................... 10,053,643 12,199,342
Shares issued to shareholders in reinvestment
of distributions .................................. 1,745,054 810,995
Shares redeemed ...................................... (9,751,624) (13,238,579)
-------------- --------------
Net increase (decrease) in Fund shares ............... 2,047,073 (228,242)
-------------- --------------
Shares outstanding at end of period .................. 47,606,518 45,559,445
-------------- --------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
- -------------------------------------------------------------------------------
Pure No-Load[Trademark] Funds Pure No-Load[Trademark] Funds Pure No-Load
- -------------------------------------------------------------------------------
18 - SCUDDER GLOBAL FUND
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
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
YEARS ENDED JUNE 30, (COMMENCEMENT OF
OPERATIONS)
TO JUNE 30,
1996 1995 1994(e) 1993 1992 1991 1990 1989 1988 1987
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
-------------------------------------------------------------------------------------------
beginning of period ..... $25.64 $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 ..... .24 .25 .23 .15 .19 .40 .19 .19 .18 .05
Net realized and
unrealized gain (loss)
on investment
transactions ............ 3.94 1.91 2.57 2.42 2.28 (1.50) 3.28 3.20 (.82) 3.37
Total from investment -------------------------------------------------------------------------------------------
operations .............. 4.18 2.16 2.80 2.57 2.47 (1.10) 3.47 3.39 (.64) 3.42
-------------------------------------------------------------------------------------------
Less distributions from:
Net investment income ..... (.25) (.11) (.24) (.16) (.31) (.37) (.20) (.14) (.06) -
Net realized gains
from investment
transactions ............ (.84) (.34) (.26) (.34) (.66) (.83) (.55) (.08) (.25) -
-------------------------------------------------------------------------------------------
Total distributions ....... (1.09) (.45) (.50) (.50) (.97) (1.20) (.75) (.22) (.31) -
-------------------------------------------------------------------------------------------
Net asset value, end of -------------------------------------------------------------------------------------------
period ............ $28.73 $25.64 $23.93 $21.63 $19.56 $18.06 $20.36 $17.64 $14.47 $15.42
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) .......... 16.65 9.11 12.99 13.45 14.09 (5.20) 20.00 23.90 (4.45) 28.50**
RATIOS AND SUPPLEMENTAL
DATA
Net assets, end of
period ($ millions) ..... 1,368 1,168 1,096 577 371 268 257 91 81 102
Ratio of operating
expenses, to average
daily net assets (%) ... 1.34 1.38 1.45 1.48 1.59 1.70 1.81 1.98 1.71(c) 1.84*(a)
Ratio of net investment
income to average
daily net assets (%) .... .84 1.03 .97 .90 1.09 2.21 1.77 1.22 1.23 .63*
Portfolio turnover
rate (%) ................ 29.1 44.4 59.7 64.9 44.6 85.0(d) 38.3 30.7 53.8 32.2*
Average commission rate
paid (b) ................ $.0272 $ - $ - $ - $ - $ - $ - $ - $ - $ -
<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) Average commission rate paid per share of common and preferred stocks is
calculated for fiscal years ending on or after June 30, 1996.
(c) The Adviser absorbed a portion of the Fund's expenses exclusive of
management fees, amounting to $.03 per share.
(d) 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.
(e) Per share amounts have been calculated using weighted average shares
outstanding.
* Annualized
** Not annualized.
</FN>
</TABLE>
- -------------------------------------------------------------------------------
Pure No-Load[Trademark] Funds Pure No-Load[Trademark] Funds Pure No-Load
- -------------------------------------------------------------------------------
19 - SCUDDER GLOBAL FUND
<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 Fund's financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management estimates.
The policies described below are followed consistently by the Fund in the
preparation of its financial statements.
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 $17,692,380 (1.3% of net assets) and have been noted in the
investment portfolio as of June 30, 1996. Their values have been estimated by
the Board of Directors in the absence of readily ascertainable market values.
However, because of the inherent uncertainty of valuation, those estimated
values may differ significantly from the values that would have been used had a
ready market for the securities existed, and the difference could be material.
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.
- -------------------------------------------------------------------------------
Pure No-Load[Trademark] Funds Pure No-Load[Trademark] Funds Pure No-Load
- -------------------------------------------------------------------------------
20 - SCUDDER GLOBAL FUND
<PAGE>
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.
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.
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.
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Pure No-Load[Trademark] Funds Pure No-Load[Trademark] Funds Pure No-Load
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21 - SCUDDER GLOBAL FUND
<PAGE>
B. PURCHASES AND SALES OF SECURITIES
Purchases and sales of investment securities (excluding short-term investments)
for the year ended June 30, 1996 aggregated $374,224,593 and $365,251,612,
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. For the
period July 1, 1995 to September 5, 1995, the management fee payable under the
Management Agreement was 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. Effective September 6, 1995, 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, .95% of the next
$500,000,000 of such assets and 0.90% of such assets in excess of $1,000,000,000
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,
1996, the fee pursuant to the Management Agreement amounted to $12,360,809,
which was equivalent to an annualized effective rate of .96% of the Fund's
average daily net assets.
Scudder Service Corporation ("SSC"), a subsidiary of the Adviser, is the
transfer, dividend-paying and shareholder service agent for the Fund. Included
in services to shareholders is $1,754,520 charged to the Fund by SSC during the
year ended June 30, 1996, of which $141,291 is unpaid at June 30, 1996.
Scudder Trust Company ("STC"), a subsidiary of the Adviser, provides
recordkeeping and other services in connection with certain retirement and
employee benefit plans invested in the Fund. For the year ended June 30, 1996,
the amount charged to the Fund by STC aggregated $438,410, of which $82,157 is
unpaid at June 30, 1996.
Scudder Fund Accounting Corporation ("SFAC"), a subsidiary of the Adviser, is
responsible 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, 1996, the amount charged to the Fund by SFAC aggregated $524,974, of
which $91,449 is unpaid at June 30, 1996.
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, 1996, Directors' fees aggregated $51,183.
D. LINES OF CREDIT
The Fund and several affiliated Funds ("The Participants") share in a $500
million revolving credit facility for temporary or emergency purposes, including
the meeting of redemption requests that otherwise might require the untimely
disposition of securities. The Participants are charged an annual commitment fee
which is allocated among each of the Participants. Interest is calculated based
on the market rates at the time of the borrowing. The Fund may borrow up to a
maximum of 33 percent of its net assets under the agreement. In addition, the
Fund also maintains an uncommitted line of credit.
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Pure No-Load[Trademark] Funds Pure No-Load[Trademark] Funds Pure No-Load
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22 - SCUDDER GLOBAL FUND
<PAGE>
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, 1996, 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 nine 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, 1996, 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, 1996, 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 nine 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 14, 1996
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Pure No-Load[Trademark] Funds Pure No-Load[Trademark] Funds Pure No-Load
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23 - SCUDDER GLOBAL FUND
<PAGE>
Tax Information
The Fund paid distributions of $.74 per share from net long-term capital gains
during its fiscal year ended June 30, 1996.
Pursuant to Section 852 of the Internal Revenue Code, the Fund designates
$49,311,240 as a long-term capital gain dividend for the fiscal year ended June
30, 1996.
For its fiscal year ended June 30, 1996, the total amount of income received by
the Fund from sources within foreign countries and possessions of the United
States was $.182 per share (representing a total of $8,653,144). The total
amount of taxes paid by the Fund to such countries was $.048 per share
(representing a total of $2,292,595).
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.
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Pure No-Load[Trademark] Funds Pure No-Load[Trademark] Funds Pure No-Load
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24 - SCUDDER GLOBAL FUND
<PAGE>
Officers and Directors
Daniel Pierce*
Chairman of the Board, Director and Vice President
William E. Holzer*
President
Paul Bancroft III
Director; Venture Capitalist and Consultant
Sheryle J. Bolton
Director; Consultant
Nicholas Bratt*
Director
Thomas J. Devine
Director; Consultant
William H. Gleysteen, Jr.
Director; Consultant
Dudley H. Ladd*
Director
William H. Luers
Director; President, The Metropolitan Museum of Art
Robert G. Stone, Jr.
Honorary 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
Adam M. Greshin*
Vice President
Jerard K. Hartman*
Vice President
Thomas W. Joseph*
Vice President
Gerald J. Moran*
Vice President
Isabel Saltzman*
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.
25 - SCUDDER GLOBAL FUND
<PAGE>
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 Global Bond Fund
Scudder GNMA Fund
Scudder High Yield Bond Fund
Scudder Income Fund
Scudder International Bond Fund
Scudder Short Term Bond Fund
Scudder Zero Coupon 2000 Fund
Growth
Scudder Capital Growth Fund
Scudder Development Fund
Scudder Emerging Markets Growth Fund
Scudder Global Discovery Fund
Scudder Global Fund
Scudder Gold Fund
Scudder Greater Europe Growth Fund
Scudder International Fund
Scudder Latin America Fund
Scudder Micro Cap Fund
Scudder Pacific Opportunities Fund
Scudder Quality Growth Fund
Scudder Small Company Value 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.
26 - SCUDDER GLOBAL FUND
<PAGE>
How to Contact Scudder
Account Service and Information
For existing account service and transactions
Scudder Investor Relations
1-800-225-5163
For personalized information about your Scudder accounts;
exchanges and redemptions; or information on any Scudder fund
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
Visit the Scudder World Wide Web Site at:
http://funds.scudder.com
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 Treasurers Trust(TM), an
institutional cash management service for corporations,
non-profit organizations and trusts which utilizes certain
portfolios of Scudder Fund, Inc.* ($100,000 minimum), call:
1-800-541-7703.
For information on Scudder Institutional Funds*, funds designed
to meet the broad investment management and service needs of
banks and other institutions, call:
1-800-854-8525.
Scudder Investor Relations and Scudder Funds Centers are services provided
through Scudder Investor Services, Inc., Distributor.
* Contact Scudder Investor Services, Inc., Distributor, to receive a prospectus
with more complete information, including management fees and expenses. Please
read it carefully before you invest or send money.
27 - SCUDDER GLOBAL FUND
<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 40 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.
This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
