Scudder
Global
Fund
Semiannual Report
December 31, 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.
This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
<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
11 Investment Portfolio
20 Financial Statements
23 Financial Highlights
24 Notes to Financial
Statements
29 Report of Independent Accountants
30 Tax Information
33 Officers and Directors
34 Investment Products
and Services
35 How to Contact
Scudder
IN BRIEF
o Scudder Global Fund provided a 9.66% total return for the six months ended
December 31, 1995, reflecting continued stock market strength in Europe and
the United States.
o The Fund surpassed the average global fund tracked by Lipper Analytical
Services during the period but failed to keep pace with the unmanaged
Morgan Stanley Capital International (MSCI) World Index. The Index's 10.61%
return for the six-month period in large part reflects a greater exposure
to the vibrant U.S. stock market. On a one-year basis, the Fund was about
in line with the Index. On a five-year basis, your Fund continued to
outperform both the Index and the average global fund.
Investment Returns
(for periods ended December 31, 1995)
Six Months One Year Five Years*
Scudder Global Fund 9.66% 20.53% 13.13%
Average Global Fund 7.15% 16.05% 12.28%
MSCI World Index 10.61% 20.72% 11.73%
* Average annualized returns.
o A number of strategic themes continued to dominate portfolio construction.
Despite the disparate returns from markets around the world, we continue to
believe that our focus on well-run global companies will provide superior
returns.
2
<PAGE>
SCUDDER GLOBAL FUND
LETTER FROM THE FUND'S CHAIRMAN
Dear Shareholders,
Nineteen ninety-five was a good year for equity investors. In Europe, low
inflation, strong corporate earnings, and a weaker U.S. dollar combined to
produce returns in excess of 20% in U.S. dollar terms, while back at home the
S&P 500 Index returned nearly twice that. We are pleased to report Scudder
Global Fund's 20.53% total return for the year and its 9.66% return for the six
months ended December 31, the period covered by this report.
The world's key central bankers have chosen to combat sluggish economic
growth with lower interest rates, and as a result the global capital markets are
now awash with financial liquidity. Near term, this liquidity may be sufficient
to support financial asset prices. Before the year comes to a close, however, we
believe there is a good chance the current global economic expansion will prove
too mature--the monetary stimulus too little and too late--to sustain. In the
United States, recent corporate earnings disappointments and stagnant job growth
may force a nation of highly indebted consumers to spend less, triggering a
brief recession. A slowdown in U.S. imports would have a negative impact on
Europe and Japan, where economic growth is equally feeble.
Scudder Global Fund employs a unique approach to portfolio management that
emphasizes investment themes over the business cycles of individual markets.
This approach is designed to identify companies that will provide above-average
stock returns regardless of the economic environments in their home markets. We
measure the Fund's success in this endeavor by its 12.46% average annualized
return since inception in 1986, a period encompassing widely diverse economic
conditions and market prices.
If you have any questions about Scudder Global Fund or your investments,
please contact a Scudder Investor Relations representative at 1-800-225-2470.
Page 35 contains 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 December 31, 1995
- -----------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- -----------------------------------------------------------------
SCUDDER GLOBAL FUND
- ----------------------------------------
Total Return
Period Growth --------------
Ended of Average
12/31/95 $10,000 Cumulative Annual
- -------- ------- ---------- ------
1 Year $12,053 20.53% 20.53%
5 Year $18,527 85.27% 13.13%
Life of
Fund* $30,309 203.09% 12.46%
MSCI WORLD INDEX
- --------------------------------------
Total Return
Period Growth --------------
Ended of Average
12/31/95 $10,000 Cumulative Annual
- -------- ------- ---------- ------
1 Year $12,072 20.72% 20.72%
5 Year $17,420 74.20% 11.73%
Life of
Fund* $26,303 163.03% 10.81%
*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 DECEMBER 31
Scudder Global Fund
Year Amount
- ----------------------
7/31/86* $10,000
86 $10,358
87 $10,672
88 $12,720
89 $17,479
90 $16,630
91 $19,152
92 $20,023
93 $26,250
94 $25,148
95 $30,309
MSCI World Index
Year Amount
- ----------------------
7/31/86* $10,000
86 $10,896
87 $12,657
88 $15,604
89 $18,196
90 $15,100
91 $17,860
92 $16,927
93 $20,736
94 $21,788
95 $26,303
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
witholding 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 DECEMBER 31
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1987 1988 1989 1990 1991 1992 1993 1994 1995
------------------------------------------------------------------------
NET ASSET VALUE... $12.56 $14.74 $19.48 $17.06 $18.96 $19.32 $24.80 $23.33 $27.01
INCOME
DISTRIBUTIONS..... $ .06 $ .14 $ .20 $ .37 $ .31 $ .16 $ .24 $ .11 $ .25
CAPITAL GAINS
DISTRIBUTIONS..... $ .25 $ .08 $ .55 $ .83 $ .66 $ .34 $ .26 $ .34 $ .84
FUND TOTAL
RETURN (%)........ 3.03 19.19 37.41 -6.40 17.07 4.54 31.10 -4.20 20.53
INDEX TOTAL
RETURN (%)........ 16.16 23.29 16.61 -17.02 18.28 -5.23 22.50 5.08 20.72
</TABLE>
All performance is historical, assumes reinvestment of all dividends and
capital gains, and is not indicative of future results.
Investment return and principal value will fluctuate, so an investor's
shares, when redeemed, may be worth more or less than when purchased.
If the 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 December 31, 1995
- ---------------------------------------------------------------------------
GEOGRAPHICAL (Excludes Cash Equivlalents & Debt)
- ---------------------------------------------------------------------------
Europe 41%
U.S. & Canada 26% In Europe, many corporations are
Pacific Basin 16% facing the challenge of global
Japan 10% competition, and the portfolio has
Latin America 3% been structured to benefit.
Other 4%
----
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 17% Our less-favorable outlook for
Metals and Minerals 10% oil stocks has prompted a
Health 8% reduction in the portfolio's
Technology 8% energy weighting.
Utilities 7%
Consumer Staples 6%
Energy 5%
Service Industries 5%
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. SANDOZ LTD. AG
Pharmaceutical company in Switzerland
3. INTERNATIONALE-NEDERLANDEN GROEP CVA
Banking and insurance holding company in the Netherlands
4. BROWN, BOVERI & CIE. AG
Manufacturer of electrical equipment in Switzerland
5. SAMSUNG ELECTRONICS CO., LTD.
Major electronics manufacturer in Korea
6. ASTRA AB
Pharmaceutical company in Sweden
7. CIBA-GEIGY AG
Pharmaceutical company in Switzerland
8. WOODSIDE PETROLEUM LTD.
Major oil and gas producer in Australia
9. VEBA AG
Electrical utility, distributor or oil and chemicals in Germany
10. AEGON INSURANCE GROUP NV
Insurance company in the Netherlands
The portfolio's significant position in Sandoz Ltd. reflects our belief
that, given the world's aging population, pharmaceutical products and
health providers will continue to thrive.
For more complete details about the Fund's Investment Portfolio,
see page 11.
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 provided a 9.66% total return for the six-month period
ended December 31, 1995, compared with 10.61% for the unmanaged Morgan Stanley
Capital International World Index. The 12-month returns for the Fund and the
Index were 20.53% and 20.72%, respectively. The average return of the funds
comprising the Lipper global fund universe was 7.15% for the six-month period
and 16.05% for the year.
Global Market Backdrop
The world stock market had its second-best year since 1988. This was
attributable to the United States, which rose 37.5%. While such European markets
as Switzerland and Sweden matched this level of return, Europe as a whole
demonstrated a more mundane 21.6% return. Japan returned a meager 0.7%. The
emerging markets category return was heavily negative at -9.2%. Despite the
initial impression given by these statistics, we do not think they disprove our
assumption of "one global economy, one global stock market." The favorable
conditions in the world economy were to the benefit of the globally oriented
participants. Markets dominated by global companies--Sweden, for example--took
their cue from the United States and performed well despite their home
economies. National markets dominated by local industries and companies did
relatively badly.
The fall in Japanese interest rates and the depressed economy there gave
Japanese institutions strong incentive to seek investment income in the U.S.
bond market. Declining U.S. interest rates and the buoyant state of the
corporate sector gave U.S. investors the incentive to shed their short-term
deposits in favor of common stocks. Such a favorable alignment of conditions did
not exist elsewhere.
In Japan, the government is under pressure from corruption charges and the
near or effective bankruptcy of some major financial institutions. At the same
time, the Japanese are concerned about job security. The ability of the
government to manage the economy is in question because many attempts to
stimulate the economy have failed. These uncertainties are reflected in an
ongoing realignment of the political structure. The Japanese economy is highly
liquid, reflecting a low level of confidence in the future.
6
<PAGE>
In Europe, the year began far better than it ended. The initial expectation
was that the economy would manage to ride on the coattails of growth in the rest
of the world. By the close of the year, it became apparent that policies
dominated by currency considerations and a fear of inflation were likely to kill
growth and aggravate budget problems in many countries.
Portfolio Review
The portfolio is very broadly diversified among 26 countries and spread
across a number of economic sectors. Rather than weight the portfolio according
to countries or economic sectors, we develop global themes and search for the
appropriate stock values to represent them. Important portfolio themes are
summarized in the following eight sections.
"The Installed Base and Standard Setters" This theme targets companies with new
technologies that secure large market shares and set the standards to which
other players must conform. Examples in the portfolio include SAP, a
German-based software applications developer.
"In Pursuit of Virtuality" Corporations are changing their structure in order to
concentrate resources on their highest value-added activities. To succeed, these
companies will also need to control the entities to whom they outsource.
Portfolio holding Xerox currently demonstrates the successful application of
this strategy.
"The Last of the Light Side Restructurings" In our analysis, we have chosen to
group the capitalist world into two types: the "Light Side" and the "Dark Side."
Light Side markets, exemplified by the United States, are substantially
deregulated, typically have higher rates of inflation, tend to run balance of
trade and fiscal deficits, and have great entrepreneurial spirit and tradition.
Corporations in these countries are taking advantage of buoyant capital markets
to reshape themselves by selling their loss-making activities. Canadian Pacific
and Australian-based Fosters Brewing Co. are current holdings in the portfolio
based on this theme.
"The Life Insurers" Individuals have lost faith in governments who promised to
provide their pension benefits. They have higher confidence in private pensions.
AEGON, ING, and Skandia are current portfolio holdings based on this theme.
"Aging Population: Healthcare" Given the world's demographics, we believe
pharmaceutical products and health providers will continue to thrive. Examples
in the portfolio are Biogen, Sandoz, and Ciba-Geigy.
7
<PAGE>
"The First of the Dark Side Restructurings" Not meant as criticism but
merely as a distinction from "Light Side" in our analysis, "Dark Side" economies
are those that typically run balance of payment and fiscal surpluses, maintain
more control over inflation, and employ a higher degree of government
regulation. In these markets, we have observed that German companies are
beginning to follow their Swiss counterparts by restructuring and joining the
global capital markets. German companies are now cutting jobs, making overseas
investments, and becoming more shareholder friendly. Examples in the portfolio
are Hoechst and VEBA.
"Emergers and Subcontractors" Developed economies stand to benefit from the
emergence of new economies. Some will succeed but others will fail. A few will
achieve self-sustaining growth and others will merely become subcontractors to
the developed world and thus will be subject to the economies they serve. Based
on this theme, the portfolio has invested about 6% in South Korea and 1% in
Brazil.
"The Reinsurers" Reinsurance is a global commodity that has been in short
supply. Leading participants in the reinsurance sector have pricing leverage and
have demonstrated above-average profitability. The market recognizes the
sector's improved profitability, yet valuations remain reasonable.
"Strategically Safe Oil" One major shift we have made since last year has
been to downgrade the importance of this investment theme. Oil stocks now
account for about 4% of the portfolio compared with the 8% target previously
set. Our decision was made in light of declining costs of finding and developing
reserves, easing tensions in the Middle East, and our view that synchronized
growth in the world looks increasingly unlikely.
Global Trends
The global economy and capital markets in aggregate are functioning well.
Growth, albeit moderate, is being achieved without inflation. New technologies
are pulling the world along and old industries are restructuring. Buy backs and
privatizations are an integral part of the process. While the United States
leads the way, others are slow to follow.
Resistance to deregulation exists on the "dark side" of the world,
particularly in Japan and continental Europe. As a result, consumers do not get
what they want and entrepreneurs are not permitted to provide it. These
economies cannot therefore create the jobs
8
<PAGE>
required nor achieve the level of activity necessary to sustain their
governments' budgets. In their weakened state, they are addicted to U.S. demand
and appear willing to supply their hard-won savings in order to sustain it.
We suspect that Europeans will ease monetary policy in the coming
weeks. Hopefully, lower interest rates will reverse the serious decline in
economic activity we are currently witnessing. Lower rates could also lead to a
fall in the DM Bloc currencies against the dollar and provide support for the
stock market. But monetary policy is not a solution to Europe's long-range
problems. U.K.-style privatization and deregulation policy is the only available
answer to Europe's budget problems, which are really a growth problem. Any
progress on this front will be hugely beneficial to the corporate sector,
although European governments have been resistant in the past. To date, the
auguries are not encouraging. If there is progress, it will most likely be the
consequence of the global corporations' action and pressure.
In the Japanese economy, too, deregulation would provide the
service-related jobs and economic growth required to offset the elimination of
manufacturing jobs, which are now going to lower-cost Asian markets. Also as in
Europe, Japan's budget in the longer run is under siege from the costs of an
aging population. Change is occurring within the Japanese political system, but
it is slow to emerge. The replacement of Prime Minister Muryama with Hashimoto
is mildly encouraging. In the interim, the Bank of Japan is providing easy
money, much of which is finding its way into U.S. bonds and supporting our
financial markets.
To global investors, the Japanese stock market presents a major
challenge. In the short run, improving liquidity should help support stock
prices. But stock valuation levels are very high. If the reformers gain
ascendency, stock prices are likely to move lower as the economy makes its
transition. If the traditionalists hold sway then it is business as usual and
stock prices should hold.
In the United States, investors have converted short-term assets into
long-term savings in the stock market, primarily via mutual funds. This shift
has resulted in dramatically higher share prices, and the attendant wealth
effect has encouraged individuals to borrow. Consumer debt has continued to
grow, but declining rates have allowed individuals to avoid feeling the
financial impact since refinancing has mitigated monthly payments. This
situation
9
<PAGE>
is vulnerable to any shock to either the stock market or the real
economy.
Moderate rates of economic growth in the world are placing little pressure
on resources. Monetary policy, therefore, should remain friendly towards capital
markets. If there is a threat, it is growth itself, which may draw money out of
financial investments. This applies to Japan in particular, where a revival of
growth might encourage capital to stay home, causing U.S. bond yields to rise
and having a major impact on stock and bond markets worldwide. A greater threat
to the general level of world stock markets, however, is the absence of growth,
which would expose the financial vulnerability of the U.S. consumer. At this
time, monetary conditions and currencies are set to ease in major foreign
markets, which bodes well for foreign stock prices relative to those in North
America.
Sincerely,
Your Portfolio Management Team
/s/William E. Holzer /s/Nicholas Bratt
William E. Holzer Nicholas Bratt
/s/Alice Ho
Alice Ho
10
<PAGE>
INVESTMENT PORTFOLIO as of December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Principal Market
Portfolio Amount ($) Value ($)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1.2% REPURCHASE AGREEMENTS
15,832,000 Repurchase Agreement with Donaldson,
Lufkin & Jenrette dated 12/29/95 at 5.85%, to
be repurchased at $15,842,291 on 1/2/96,
collateralized by a $15,789,000 U.S.
Treasury Bill, 3/31/96 (Cost $15,832,000).......... 15,832,000
----------
4.0% BONDS
50,000,000 U.S. Treasury Note, 5.625%, 6/30/97
(Cost $49,839,844)................................ 50,312,500
----------
1.2% CONVERTIBLE BONDS
CANADA 0.5% 6,657,000 Teck Corp., 3.750%, 7/15/06 (Major mining
complex).......................................... 6,623,715
----------
KOREA 0.4% 625,000 Cheil Food and Chemical Co., Ltd., 3%,
12/31/06 (Leading sugar refiner and major
integrated food processor)........................ 806,250
2,700,000 Ssangyong Cement Industrial Co., Ltd., 3%,
12/31/05 (Major cement producer).................. 3,253,500
650,000 Ssangyong Oil Refining Co., Ltd., 3.75%,
12/31/08 (Major oil refiner)...................... 690,625
----------
4,750,375
----------
MEXICO 0.3% 8,200,000 Empresa ICA Sociedad Controladora S.A.,
5%, 3/15/04 (Construction company)................ 4,305,000
----------
TOTAL CONVERTIBLE BONDS (Cost $17,948,166)......... 15,679,090
----------
3.7% PREFERRED STOCKS
<CAPTION>
Shares
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
GERMANY 47,700 Rheinisch-Westfaelisches Elektrizitaetswerk
AG (Electric utility)............................. 13,319,368
182,200 SAP AG (Computer software manufacturer)............ 27,600,279
30,000 Spar Handels AG (Food and beverage
wholesaler and retailer).......................... 6,450,262
----------
TOTAL PREFERRED STOCKS (Cost $21,747,614).......... 47,369,909
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
SCUDDER GLOBAL FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
89.9% COMMON STOCKS
ARGENTINA 0.6% 253,143 Electricidad Argentina S.A."A" (ADR)
(Electric utility) (c)............................... 4,430,003
134,100 YPF S.A. "D" (ADR) (Petroleum company)............... 2,899,913
----------
7,329,916
----------
AUSTRALIA 5.2% 1,056,000 Ampol Exploration Ltd.* (Oil and gas
exploration company)................................ 2,307,524
700,187 Australian Gas & Light Co. (Public utility).......... 2,628,091
1,016,565 Broken Hill Proprietary Co. Ltd. (Petroleum,
minerals and steel)................................. 14,355,680
547,000 CRA Ltd. (Mining, manufacturing and
development)........................................ 8,025,452
41,025 CRA Ltd. (New)....................................... 591,542
1,530,000 Coca Cola Amatil Ltd. (Soft drink bottler and
distributor)........................................ 12,201,864
4,178,400 Foster's Brewing Group, Ltd. (Leading brewery)....... 6,863,368
3,711,000 Woodside Petroleum Ltd. (Major oil and
gas producer)....................................... 18,976,426
----------
65,949,947
----------
AUSTRIA 0.3% 61,900 Flughafen Wien AG (Operator of terminals
and facilities at Vienna International Airport)(c).. 4,176,415
----------
BERMUDA 2.3% 378,150 Mid Ocean Limited (Property and casualty
insurance company).................................. 14,038,819
570,200 PartnerRe Holdings Ltd. (Property and casualty
insurance company).................................. 15,680,500
----------
29,719,319
----------
BRAZIL 1.3% 30,401,230 Centrais Eletricas Brasileiras S/A "B" (pfd.)
(Electric utility).................................. 8,226,270
126,000,000 Companhia Energetica de Minas Gerais (pfd.)
(Electric power utility)............................ 2,787,180
70,200,000 Companhia Energetica de Sao Paulo (pfd.)*
(Electric utility).................................. 2,043,272
10,591,625 Companhia Siderurgica Belgo-Mineira
(Manufacturer of steel wires and wire
products)........................................... 864,049
8,447,000 Light Servicos de Electric SA (voting)
(Electricity distributor in the state of Rio
de Janeiro)......................................... 2,702,831
----------
16,623,602
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
INVESTMENT PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CANADA 4.0% 196,271 Alcan Aluminium Ltd. (CN) (Manufacturer of
aluminum and finished products)..................... 6,091,913
222,200 Barrick Gold Corp. (CN) (Gold exploration and
production in North and South America).............. 5,860,525
218,000 Barrick Gold Corp.................................... 5,748,398
314,900 Cambior, Inc. (Medium-sized gold producer
with a major mine in Guyana)........................ 3,430,974
100,000 Canadian Pacific Ltd. (Transportation and
resource conglomerate).............................. 1,812,500
863,048 Canadian Pacific Ltd. (Ord.)......................... 15,724,832
240,300 Placer Dome Inc. (CN) (Gold, silver and copper
mining company)..................................... 5,808,387
236,000 Placer Dome Inc...................................... 5,693,500
-----------
50,171,029
-----------
CHINA 1.0% 526 American Standard China (Plumbing
products) (c)........................................ 5,260,000
551,500 Huaneng Power International, Inc. Series N
(ADR)* (Developer and operator of large
coal-fired power plants)............................ 7,927,813
-----------
13,187,813
-----------
DENMARK 0.8% 138,500 FLS Industries "B" (Machinery for cement
and allied industries; manufacturer and
shipper of cement).................................. 10,732,564
-----------
GERMANY 9.6% 441,000 Bayerische Vereinsbank Girozentrale
(Commercial bank)................................... 13,114,555
24,830 Daimler-Benz AG (Automobile and truck
manufacturer)....................................... 12,514,667
56,339 Hoechst AG (Chemical producer)....................... 15,299,037
38,812 Mannesmann AG (Bearer) (Diversified
construction and technology company)................ 12,373,780
2,446 Muenchener Rueckversicherungs AG
(Insurance company)................................. 4,448,049
5,619 Muenchener Rueckversicherungs AG
(Registered)........................................ 12,238,241
179,000 Schering AG (Pharmaceutical and chemical
producer)........................................... 11,874,604
18,040 Siemens AG (Bearer) (Manufacturer of
electrical and electronic equipment)................ 9,885,794
445,000 VEBA AG (Electric utility, distributor of oil and
chemicals) ......................................... 18,918,325
29,330 Viag AG (Provider of electrical power and
natural gas services, aluminum products,
chemicals, ceramics and glass)...................... 11,772,949
-----------
122,440,001
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
SCUDDER GLOBAL FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HONG KONG 0.9% 100 China Light & Power Co., Ltd. (Electric utility) 460
1,607,000 Hutchison Whampoa, Ltd. (Container terminal
and real estate company)............................ 9,767,734
258 New World Development Co., Ltd. (Property
investment and development, construction and
engineering, hotels and restaurants,
telecommunications)................................. 1,121
608,000 Television Broadcasts, Ltd. (Television
broadcasting)....................................... 2,166,233
-----------
11,935,548
-----------
HUNGARY 0.3% 3,619 First Hungary Fund (Investment company) (c).......... 3,226,881
-----------
INDONESIA 0.3% 411,500 HM Sampoerna (Foreign registered)
(Tobacco company)................................... 4,283,271
-----------
JAPAN 9.7% 500,000 Bridgestone Corp. (Leading automobile tire
manufacturer)....................................... 7,938,045
704,000 Canon Inc. (Leading producer of visual image
and information equipment).......................... 12,744,240
1,278,000 Hitachi Ltd. (General electronics manufacturer)...... 12,866,602
73,000 Hitachi Metals, Ltd. (Major producer of
high-quality specialty steels)...................... 911,617
1,001,000 Iino Kaiun Kaisha, Ltd. (Operator of tankers
and specialized carriers)........................... 5,697,851
191,000 Kyocera Corp. (Leading ceramic package
manufacturer)....................................... 14,181,704
788,000 Matsushita Electrical Industrial Co., Ltd.
(Consumer electronic products manufacturer)......... 12,815,489
794,000 NSK Ltd. (Leading manufacturer of bearings
and other machinery parts).......................... 5,764,763
90,000 Nichiei Co., Ltd. (Finance company for small
and medium-sized firms)............................. 6,708,616
1,047,000 Nisshin Steel Co., Ltd. (Blast furnace
steelmaker)......................................... 4,226,515
30,100 SMC Corp. (Leading maker of pneumatic
equipment).......................................... 2,176,641
157,000 Secom Co., Ltd. (Electronic security system
operator)........................................... 10,912,488
144,000 Sony Corp. (Consumer electronic products
manufacturer)....................................... 8,628,848
913,000 Sumitomo Metal Industries, Ltd. (Leading
integrated crude steel producer).................... 2,766,399
1,690,000 Sumitomo Metal Mining Co., Ltd.* (Leading
gold, nickel and copper mining company)............. 15,182,188
-----------
123,522,006
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
INVESTMENT PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
KOREA 5.5% 10,000 Baik Yang Co. (Leading maker of
under garments)................................... 1,289,075
9 Cheil Food and Chemical Co., Ltd. (Korea's
largest sugar refiner and major integrated
food processor)................................... 617
334,374 Daewoo Heavy Industries Ltd. (Leading
manufacturer of heavy industrial equipment)....... 3,642,230
113,251 Daewoo Securities Co., Ltd. (Brokerage and
financial services)............................... 2,948,979
121,464 Hanil Bank (Major commercial bank)................. 1,296,451
69 units Korea Asia Fund (IDR) (Investment
company) (b)...................................... 1,569,750
25,000 Korea Electric Power Co. (Electric utility)........ 992,588
353,000 Korea Electric Power Co. (ADR)..................... 9,354,500
140 units Korea Equity Trust (IDR) (Investment
company) (b)...................................... 1,540,000
78,207 Korea Express Co., Ltd. (General freight
transport company)................................ 2,742,160
20,338 Korea Express Co., Ltd. (New)...................... 707,865
49,799 Korea Long Term Credit Bank (Major
commercial bank).................................. 1,405,863
3,850 Korea Mobile Telecom (Mobile
telecommunication company) (c).................... 4,340,090
80,000 Korea Zinc Co. (Zinc mining and manufacturing)..... 1,959,394
25,990 Lotte Confectionery Co., Ltd. (Major producer
of snack food).................................... 3,015,276
101,398 Oriental Brewery Co., Ltd.* (Korea's largest
brewer)........................................... 2,287,419
25,000 Pang-Rim Spinning Co., Ltd. (Leading
manufacturer of cotton-polyester spun fabrics).... 1,662,907
7,030 Pohang Iron & Steel Co., Ltd. (Korea's largest
steel producer) (c).............................. 509,993
13,933 Samsung Electromechanics Co., Ltd (Major
electronics parts company)........................ 700,467
5,448 Samsung Electromechanics Co., Ltd. (New) (d)....... 270,381
1,153 Samsung Electronics Co., Ltd. (Major
electronics manufacturer) (c)..................... 211,664
230,390 Samsung Electronics Co., Ltd. (GDS)
(Non-voting)...................................... 13,823,400
45,335 Samsung Electronics Co., Ltd. (GDS)
(Non-voting) (New) (d)............................ 2,674,765
29,483 Samsung Electronics Co., Ltd. (GDS) (Voting)....... 2,830,368
9,588 Samsung Electronics Co., Ltd. (GDS) (Voting)
(New) (d)......................................... 891,684
14 Samsung Electronics Co., Ltd. (New) (c)............ 2,561
94,557 Samsung Heavy Industries Co., Ltd.
(Machinery manufacturer).......................... 2,425,632
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
SCUDDER GLOBAL FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
12,349 Samsung Heavy Industries Co., Ltd. (New) (d)........ 312,008
40,000 Samsung Securities (Securities company)............. 1,345,794
43 units Seoul International Trust (Investment
company) (b)....................................... 1,999,500
37,206 Ssangyong Cement Industrial Co., Ltd. (Major
cement company).................................... 1,040,761
----------
69,794,142
----------
NETHERLANDS 4.3% 426,422 AEGON Insurance Group NV (Insurance
company)........................................... 18,897,673
331,696 Internationale-Nederlanden Groep CVA
(Banking and insurance holding company)............ 22,194,502
92,600 Royal Dutch Petroleum Co. (New York shares)
(International energy company)..................... 13,068,175
----------
54,160,350
----------
NEW ZEALAND 0.9% 2,600,000 Telecom Corp. of New Zealand
(Telecommunication services)....................... 11,218,348
----------
PANAMA 0.6% 165,900 Banco Latinoamericano de Exportaciones,
SA (ADR) (Bank).................................... 7,714,350
----------
SINGAPORE 0.8% 1,004,296 Jardine Matheson Holdings, Ltd.
(Conglomerate: real estate, merchandising,
engineering)....................................... 6,879,428
1,008,000 Jardine Strategic Holdings Ltd.
(Conglomerate: auto distribution, food
retailing, property investment and
development)....................................... 3,084,480
----------
9,963,908
----------
SOUTH AFRICA 1.3% 468,500 Impala Platinum Holdings (ADR) (Leading
platinum producer)................................. 8,901,500
962,755 Malbak Ltd. (GDR) (Registered)* (Diversified
holding company involved in food, packaging
and paper, healthcare, consumer products
and investments)................................... 6,618,941
76,528 Rustenburg Platinum Holdings, Ltd. (ADR)
(Leading platinum producer)........................ 1,300,976
----------
16,821,417
----------
SWEDEN 4.0% 502,000 Astra AB "A" (Free) (Pharmaceutical company)........ 20,043,694
676,300 S.K.F. AB "B" (Free)* (Manufacturer of roller
bearings).......................................... 12,941,103
417,300 Skandia Foersaekrings AB (Free) (Financial
conglomerate)...................................... 11,286,025
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
INVESTMENT PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
298,900 Volvo AB "B" (Free) (Automobile manufacturer)..... 6,124,815
-----------
50,395,637
-----------
SWITZERLAND 9.3% 17,915 Brown, Boveri & Cie. AG (Bearer)
(Manufacturer of electrical equipment)........... 20,826,877
8,250 Ciba-Geigy AG (Bearer) (Pharmaceutical
company)......................................... 7,228,994
13,735 Ciba-Geigy AG (Registered)........................ 12,094,760
9,621 Nestle SA (Registered) (Food manufacturer)........ 10,650,584
26,715 Sandoz Ltd. AG (Registered) (Pharmaceutical
company)......................................... 24,474,940
2,675 Schindler Holdings AG (PC) (Leading elevator
and escalator manufacturer)...................... 2,773,283
26,018 Swiss Bank Corp. (Bearer) (Switzerland's
second largest universal bank)................... 10,631,569
11,750 Swiss Reinsurance (Registered) (Life, accident
and health insurance company).................... 13,680,215
50,750 Zurich Insurance Group (Registered)
(Insurance company).............................. 15,189,997
-----------
117,551,219
-----------
TAIWAN 0.5% 2,025,000 Taiwan Semiconductor Manufacturing Co.
(Manufacturer of integrated circuits and
other semiconductor devices)..................... 6,345,054
-----------
UNITED KINGDOM 5.9% 1,388,000 Grand Metropolitan PLC (Food and drink
producer and retailer)........................... 9,995,867
677,600 Great Universal Stores PLC "A" (Catalog
home shopping, retailing, finance and
property investment)............................. 7,206,562
1,202,269 Lasmo PLC (Oil production and exploration)........ 3,250,365
140,900 London & Overseas Freighters (ADR)
(Operator of a fleet of oil tankers)............. 1,620,350
1,400,134 PowerGen PLC (Electric utility)................... 11,573,441
1,128,609 RTZ Corp. PLC (Mining and finance company)........ 16,413,478
1,680,000 Reuters Holdings PLC (International news
agency).......................................... 15,387,723
3,069,900 St. James's Place Capital PLC (Money
management and insurance)........................ 4,936,804
817,400 Waste Management International PLC*
(Waste collection and disposal services)......... 4,318,121
-----------
74,702,711
-----------
UNITED STATES 20.4% 227,500 AirTouch Communications, Inc.* (Wireless
telecommunication services)...................... 6,426,875
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
SCUDDER GLOBAL FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
236,100 American President Companies, Ltd. (Major
containership operator).............................. 5,430,300
219,900 Biogen Inc.* (Biotechnology research and
development)......................................... 13,523,850
92,400 Boeing Co. (Manufacturer of jet airplanes)............ 7,241,850
108,000 Comsat Corp. (Provider of communication
and information services worldwide by
fixed and mobile technology)......................... 2,011,500
479,000 Destec Energy Inc.* (Non-utility producer of
cogeneration and coal gasification power)............ 6,586,250
228,300 EXEL, Ltd. (Provider of liability insurance).......... 13,926,300
356,300 Enron Corp. (Major natural gas pipeline system)....... 13,583,938
95,700 First Data Corp. (Credit-card processing
services)............................................ 6,399,938
136,700 Fluor Corp. (Engineering and construction
company)............................................. 9,022,200
99,635 General Re Corp. (Property and casualty
reinsurance)......................................... 15,443,425
627,000 Homestake Mining Co. (Major international
gold producer)....................................... 9,796,875
187,760 International Business Machines Corp.
(Principal manufacturer and servicer of
business and computing machines)..................... 17,226,980
76,322 J.P. Morgan & Co., Inc. (Commercial banking
and financial services).............................. 6,124,841
739,100 LaFarge Corp. (Leading cement producer)............... 13,858,125
400,000 Louisiana-Pacific Corp. (Producer of lumber,
plywood and pulp).................................... 9,700,000
202,650 MBIA Inc. (Insurer of municipal bonds)................ 15,198,750
396,700 Pharmacia & Upjohn, Inc.* (Leading
pharmaceutical producer)............................. 15,372,125
107,500 Policy Management Systems Corp.* (Insurance
company software and services)....................... 5,119,688
259,400 Public Service Co. of New Mexico* (Large
electric utility serving the southwest).............. 4,571,925
81,000 Thermo Electron Corp.* (Engineered industrial
products and environmental instruments).............. 4,212,000
312,000 Times Mirror Co. "A" (Newspaper publisher)............ 10,569,000
250,000 Unicom Corp. (Electric utility in northern Illinois).. 8,187,500
181,700 United Technologies Corp. (Manufacturer
of aerospace, climate control systems, and
elevators)........................................... 17,238,788
266,100 WMX Technologies Inc. (Solid and chemical
waste management services)........................... 7,949,738
97,650 Xerox Corp. (Leading manufacturer of copiers
and duplicators)..................................... 13,378,050
-----------
258,100,811
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
INVESTMENT PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
VENEZUELA 0.1%
191,100 Venezolana de Prerreducidos Caroni C.A.
(GDS) (Manufacturer of steel pellets)........... 836,063
-------------
TOTAL COMMON STOCKS (Cost $878,226,087).......... 1,140,902,322
-------------
- ------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT PORTFOLIO - 100.0%
(Cost $983,593,711) (a)......................... 1,270,095,821
=============
</TABLE>
* Non-income producing security.
(a) The cost for federal income tax purposes was $984,973,236. At December 31,
1995, net unrealized appreciation for all securities based on tax cost was
$285,122,585. This consisted of aggregate gross unrealized appreciation for
all securities in which there was an excess of market value over tax cost of
$310,782,473 and aggregate gross unrealized depreciation for all securities
in which there was an excess of tax cost over market value of $25,659,888.
(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 December 31, 1995 aggregated
$20,462,389. 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.
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
SCUDDER GLOBAL FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
DECEMBER 31, 1995
- ------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments, at market (identified cost $983,593,711)
(Note A) ....................................... $1,270,095,821
Cash ................................................... 4,929
Receivables:
Investments sold ............................... 16,409,469
Dividends and interest ......................... 2,564,574
Foreign taxes recoverable ...................... 422,798
Fund shares sold ............................... 1,243,501
--------------
Total assets ........................... 1,290,741,092
LIABILITIES
Payables:
Investments purchased .......................... $14,066,857
Fund shares redeemed ........................... 1,325,577
Accrued management fee (Note C) ................ 1,011,298
Other accrued expenses (Note C) ................ 708,945
Payable on closed forward foreign currency
exchange contracts (Note A) ............ 2,007,982
-----------
Total liabilities ...................... 19,120,659
--------------
Net assets, at market value ............................ $1,271,620,433
==============
NET ASSETS
Net assets consist of:
Accumulated distributions in excess of
net investment income .................. $ (428,194)
Net unrealized appreciation (depreciation) on:
Investments ............................ 286,502,110
Foreign currency related transactions .. (19,035)
Accumulated distributions in excess of
net realized gains ..................... (124,389)
Capital stock .................................. 470,871
Additional paid-in capital ..................... 985,219,070
--------------
Net assets, at market value ............................ $1,271,620,433
==============
NET ASSET VALUE, offering and redemption price per
share ($1,271,620,433 divided by 47,087,134
shares of capital stock outstanding, $.01 par
value, 100,000,000 shares authorized) .......... $27.01
==============
</TABLE>
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
FINANCIAL STATEMENTS
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Six Months Ended December 31, 1995
- --------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends (net of withholding taxes of $581,823)......... $ 7,628,171
Interest................................................. 2,731,729
------------
10,359,900
Expenses:
Management fee (Note C).................................. $5,954,591
Services to shareholders (Note C)........................ 1,247,890
Custodian and accounting fees (Note C)................... 810,956
Directors' fees (Note C)................................. 24,246
Reports to shareholders.................................. 246,939
Legal ................................................... 14,672
Auditing................................................. 48,358
Federal and state registration........................... 23,179
Other.................................................... 63,557 8,434,388
-----------------------------
Net investment income.................................... 1,925,512
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT TRANSACTIONS
Net realized gain (loss) from:
Investments...................................... 23,468,464
Foreign currency related transactions............ (117,664) 23,350,800
-----------------------------
Net unrealized appreciation (depreciation) during
the period on:
Investments...................................... 87,131,835
Foreign currency related transactions............ (68,721) 87,063,114
-----------------------------
Net gain on investment transactions...................... 110,413,914
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..... $112,339,426
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
SCUDDER GLOBAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
DECEMBER 31, YEAR ENDED
1995 JUNE 30,
INCREASE (DECREASE) IN NET ASSETS (UNAUDITED) 1995
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income .................................. $ 1,925,512 $ 11,643,651
Net realized gain from investment
transactions ................................... 23,350,800 11,948,024
Net unrealized appreciation on investment
transactions during the period ................. 87,063,114 72,766,161
--------------- ---------------
Net increase in net assets resulting
from operations ................................ 112,339,426 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 .............................. 119,799,423 294,309,148
Net asset value of shares issued to
shareholders in reinvestment of distributions .. 46,815,558 20,010,200
Cost of shares redeemed ................................ (125,616,292) (316,718,412)
--------------- ---------------
Net increase (decrease) in net assets from
Fund share transactions ........................ 40,998,689 (2,399,064)
--------------- ---------------
INCREASE IN NET ASSETS ................................. 103,436,907 72,649,525
Net assets at beginning of period ...................... 1,168,183,526 1,095,534,001
--------------- ---------------
NET ASSETS AT END OF PERIOD
(including accumulated distributions
in excess of net investment income
and undistributed net investment income
of $(428,194) and $8,984,372, respectively) .... $ 1,271,620,433 $ 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 ............................................ 4,454,170 12,199,342
Shares issued to shareholders in
reinvestment of distributions .................. 1,745,054 810,995
Shares redeemed ........................................ (4,671,535) (13,238,579)
--------------- ---------------
Net increase (decrease) in Fund shares ................. 1,527,689 (228,242)
--------------- ---------------
Shares outstanding at end of period .................... 47,087,134 45,559,445
=============== ===============
</TABLE>
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
FINANCIAL HIGHLIGHTS
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
DECEMBER 31, YEARS ENDED JUNE 30,
------------ ------------------------------------------
1995 1995 1994(d) 1993 1992
------------ ------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ... $25.64 $23.93 $21.63 $19.56 $18.06
------ ------ ------ ------ ------
Income from investment
operations:
Net investment income . .04 .25 .23 .15 .19
Net realized and
unrealized gain
(loss) on investment
transactions ........ 2.42 1.91 2.57 2.42 2.28
------ ------ ------ ------ ------
Total from investment
operations ............ 2.46 2.16 2.80 2.57 2.47
------ ------ ------ ------ ------
Less distributions from:
Net investment income . (.25) (.11) (.24) (.16) (.31)
Net realized gains
on investment
transactions ........ (.84) (.34) (.26) (.34) (.66)
------ ------ ------ ------ ------
Total distributions ..... (1.09) (.45) (.50) (.50) (.97)
------ ------ ------ ------ ------
Net asset value, end of
period .............. $27.01 $25.64 $23.93 $21.63 $19.56
====== ====== ====== ====== ======
TOTAL RETURN (%) ........ 9.66** 9.11 12.99 13.45 14.09
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end of period
($ millions) .......... 1,272 1,168 1,096 577 371
Ratio of operating
expenses, to average
daily net assets (%) .. 1.36* 1.38 1.45 1.48 1.59
Ratio of net investment
income to average
daily net assets (%) .. .31* 1.03 .97 .90 1.09
Portfolio turnover
rate (%) .............. 26.5* 44.4 59.7 64.9 44.6
</TABLE>
<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 23, 1986
(COMMENCEMENT
OF OPERATIONS)
YEARS ENDED JUNE 30, TO JUNE 30,
------------------------------------------
1991 1990 1989 1988 1987
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ... $20.36 $17.64 $14.47 $15.42 $12.00
------ ------ ------ ------ ------
Income from investment
operations:
Net investment income . .40 .19 .19 .18 .05
Net realized and
unrealized gain
(loss) on investment
transactions ........ (1.50) 3.28 3.20 (.82) 3.37
------ ------ ------ ------ ------
Total from investment
operations ............ (1.10) 3.47 3.39 (.64) 3.42
------ ------ ------ ------ ------
Less distributions from:
Net investment income . (.37) (.20) (.14) (.06) --
Net realized gains
on investment
transactions ........ (.83) (.55) (.08) (.25) --
------ ------ ------ ------ ------
Total distributions ..... (1.20) (.75) (.22) (.31) --
------ ------ ------ ------ ------
Net asset value, end of
period .............. $18.06 $20.36 $17.64 $14.47 $15.42
====== ====== ====== ====== ======
TOTAL RETURN (%) ........ (5.20) 20.00 23.90 (4.45) 28.50**
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end of period
($ millions) .......... 268 257 91 81 102
Ratio of operating
expenses, to average
daily net assets (%) .. 1.70 1.81 1.98 1.71(b) 1.84*(a)
Ratio of net investment
income to average
daily net assets (%) .. 2.21 1.77 1.22 1.23 .63*
Portfolio turnover
rate (%) .............. 85.0(c) 38.3 30.7 53.8 32.2*
</TABLE>
(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
23
<PAGE>
SCUDDER GLOBAL FUND
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 $22,157,607 (1.7% of net assets) and have been noted in the
investment portfolio as of December 31, 1995.
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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.
25
<PAGE>
SCUDDER GLOBAL FUND
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.
26
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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 six months ended December 31, 1995 aggregated $159,519,169 and
$169,750,638, 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 six months ended
December 31, 1995, the fee pursuant to the Management Agreement amounted to
$5,954,591, which was equivalent to an annualized effective rate of .96% of the
Fund's average daily net assets.
27
<PAGE>
SCUDDER GLOBAL FUND
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 $1,062,421 charged to the Fund by SSC during the
six months ended December 31, 1995, of which $238,344 is unpaid at December 31,
1995.
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 six months
ended December 31, 1995, the amount charged to the Fund by SFAC aggregated
$255,331, of which $43,393 is unpaid at December 31, 1995.
The Fund pays each Director not affiliated with the Adviser $4,000 annually,
plus specified amounts for attended board and committee meetings. For the six
months ended December 31, 1995, Directors' fees aggregated $24,246.
28
<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 December 31, 1995, and the
related statement of operations for the six-month period then ended, the
statements of changes in net assets for the six-month period then ended, and for
the year ended June 30, 1995, and the financial highlights for the six-month
period ended December 31, 1995, for each of the eight years in the period ended
June 30, 1995 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
December 31, 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 December 31, 1995, the results of its operations for
the six-month period then ended, the changes in its net assets for the six-month
period then ended and for the year ended June 30, 1995, and the financial
highlights for the six-month period ended December 31, 1995, for each of the
eight years in the period ended June 30, 1995 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.
February 2, 1996
29
<PAGE>
SCUDDER GLOBAL FUND
TAX INFORMATION
By now shareholders for whom year-end tax reporting is required by the IRS
should have received their Form 1099-DIV and tax information letter from the
Fund.
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.
30
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31
<PAGE>
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32
<PAGE>
OFFICERS AND DIRECTORS
Edmond D. Villani*
Chairman of the Board and Director
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; President, The Japan Society, Inc.
William H. Luers
Director; President, The Metropolitan Museum of Art
Daniel Pierce*
Director and Vice President
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
Douglas M. Loudon*
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.
33
<PAGE>
INVESTMENT PRODUCTS AND SERVICES
<TABLE>
<CAPTION>
<S> <C> <C>
The Scudder Family of Funds
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
Money Market Income
Scudder Cash Investment Trust Scudder Emerging Markets Income Fund
Scudder U.S. Treasury Money Fund Scudder Global Bond Fund
Tax Free Money Market+ Scudder GNMA Fund
Scudder Tax Free Money Fund Scudder Income Fund
Scudder California Tax Free Money Fund* Scudder International Bond Fund
Scudder New York Tax Free Money Fund* Scudder Short Term Bond 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 Small Company Value Fund
Scudder Growth and Income Fund Scudder Value 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#
-----------------------------------------------------------------------------------------------------------------
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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 Treasurers Trust(TM)++
Scudder Fund, Inc.
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
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.
</TABLE>
34
<PAGE>
HOW TO CONTACT SCUDDER
<TABLE>
<CAPTION>
<S> <C> <C>
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
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
-------------------------------------------------------------------------------------------------------------
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For information on Scudder For information on Scudder Institutional Funds*,
Treasurers Trust(TM), an funds designed to meet the broad investment
institutional cash management management and service needs of banks and other
service for corporations, institutions, call: 1-800-854-8525.
non-profit organizations and
trusts that uses certain
portfolios of Scudder Fund, Inc.*
($100,000 minimum), call:
1-800-541-7703.
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Scudder Investor Relations and Scudder Funds Centers are services provided through Scudder
Investor Services, Inc., Distributor.
* Contact Scudder Investor Services, Inc., Distributor, to receive a prospectus with more complete information,
including management fees and expenses. Please read it carefully before you invest or send money.
</TABLE>
35
<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 37 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.
