Scudder
Emerging Markets
Income Fund
Fund Profile
April 1, 1996
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Scudder Emerging Markets Income Fund
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1. What Are The Fund's Objectives?
Scudder Emerging Markets Income Fund seeks high current
income. Its secondary objective is long-term capital
appreciation.
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2. What Does The Fund Invest In?
The Fund invests primarily (at least 65% of assets) in
high yield/high risk debt securities issued by governments
and corporations in emerging markets. These securities
generally are rated below investment-grade.
o The Fund may focus its investments in countries in Latin
America.
o The Fund's assets are invested primarily in U.S.
dollar-denominated income-bearing securities issued by
governments or related entities and corporations.
o The weighted average maturity of the Fund's portfolio
will be actively managed and will vary from period to
period.
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3. What Are The Risks Of Investing In The Fund?
Emerging market securities can be more volatile and less
liquid than securities in more developed markets. Foreign
securities often have less publicly available information
and are subject to different regulations than domestic
securities. Political events, changes in the perceived
creditworthiness of issuers, fluctuating national interest
rates, foreign taxes and movements in foreign currencies
will affect the value of the Fund's holdings, which
determine the Fund's share price. Consequently, the Fund's
share price and yield are likely to vary from day to day.
You incur principal risk when you invest because your
shares, when sold, may be worth more or less than what you
paid for them.
Because it is non-diversified, the Fund may invest in a
small number of issuers, which will subject it to greater
market and credit risk than a diversified fund.
Furthermore, the Fund's holdings in securities rated below
investment-grade (i.e., junk bonds) carry a greater risk
of default and more price volatility than securities rated
investment-grade or above.
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4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking high
current income and:
o plan to hold your investment for several years,
o can tolerate fluctuations in share price, and
o have or plan to have other investments for the benefit
of diversification.
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5. What Are The Fund's Expenses And Fees?
There are two kinds of expenses that a shareholder may
incur, directly or indirectly, by investing in a mutual
fund. These types of expenses, as they relate to Scudder
Emerging Markets Income Fund, are:
Shareholder transaction expenses --
fees charged directly to your account for various
transactions.
Sales Commission None
Commissions to Reinvest Dividends None
Redemption Fee None
Exchange Fee None
Annual Fund operating expenses --
fees paid by the Fund before it distributes its net
investment income, expressed as a percentage of the
Fund's average daily net assets. Figures below are
for the fiscal year ended October 31, 1995. Until
February 29, 1996 Scudder waived a portion of its
investment management fee to the extent necessary so
that the total annualized expenses of the Fund did
not exceed 1.50% of average daily net assets.
Investment management fee 1.00%
12b-1 fees None
Other expenses 0.68%
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Total Fund operating expenses 1.68%
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Example:
Assuming a 5% annual return and redemption at the end
of each period, the total expenses relating to a
$1,000 investment would be:
1 Year 3 Years 5 Years 10 Years
-------- ------- -------- --------
$17 $53 $91 $199
This example assumes reinvestment of all dividends and
distributions and that the total Fund operating expenses
listed above remain the same each year. This example
should not be considered a representation of past or
future expenses or return. Actual Fund expenses and return
vary from year to year and may be higher or lower than
those shown. Please note that there is a $5 service fee if
you request redemption proceeds via wire.
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6. How Has The Fund Performed Historically?
This chart shows how the Fund has performed since it
commenced operations on December 31, 1993, assuming
reinvestment of all distributions. Performance is
historical and may not be indicative of future results.
Total return and principal value will fluctuate. The
Fund's 30-day net annualized SEC yield on March 31, 1996
was 10.53%.
Total return for the years
ended December 31
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1994 -8.06%
1995 19.48%
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The Fund's Average Annual Total Return
for the period ended March 31, 1996
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One Year 41.14%
Life of Fund 7.03%
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7. Who Manages The Fund?
The Fund's investment adviser is Scudder, Stevens & Clark,
Inc., a leading provider of U.S. and international
investment management for clients throughout the world.
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8. How Can I Invest?
To make it easy for you to open an account, you may invest
by mail, phone, fax, or in person. The minimum initial
investment is only $1,000. Thereafter, additional
investments may be made for as little as $100. You may
also exchange shares free of charge within the Scudder
Family of Funds.
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9. How Can I Redeem Shares?
You may redeem shares at the current share price on any
business day by telephone, fax, or mail.
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10. When Are Distributions Made?
The Fund typically makes dividend distributions in March,
June, September, and December. Capital gain distributions,
if any, will be made in December. You may elect to receive
distributions in cash or have them reinvested in
additional shares of the Fund.
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11. What Services Does Scudder Provide?
As a shareholder, you'll enjoy:
o professional service from representatives who can
answer your questions and execute your transactions
o automated toll-free touchtone access to account
information, share prices and yields, and to perform
transactions
o Scudder's quarterly shareholder newsletter,
Perspectives
o regular, informative reports about the performance of
your Fund
Scudder wants you to make informed investment decisions. This Fund Profile
contains key information about Scudder Emerging Markets Income Fund. More
details appear in the Fund's accompanying prospectus. Please read it carefully
before you invest. If you have any questions, please call 1-800-225-2470.
