SCUDDER [logo]
December 31, 1997
Dear Scudder Investor,
On the reverse side, you'll find a prospectus supplement announcing that Scudder
International Bond Fund's investment adviser has agreed to maintain the Fund's
total fees and expenses at no more than 1.50% of the Fund's average daily net
assets on an annual basis. Please keep this supplement with your prospectus.
If you have any questions about this information, or about the Fund in general,
please call us at 1-800-225-2470. We will be happy to help you.
Sincerely,
/s/Mark S. Casady
Mark S. Casady
President, Scudder Investor Services, Inc.
This letter is for explanatory purposes only and is not part of the prospectus
supplement on the reverse side.
<PAGE>
Scudder International Bond Fund
Supplement to Prospectus dated November 1, 1997
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How to compare a Scudder pure no-load(TM) fund
This information is designed to help you understand the various costs and
expenses of investing in Scudder International Bond Fund (the "Fund"). By
reviewing this table and those in other mutual funds' prospectuses, you can
compare the Fund's fees and expenses with those of other funds. With Scudder's
pure no-load(TM) funds, you pay no commissions to purchase or redeem shares, or
to exchange from one fund to another. As a result, all of your investment goes
to work for you.
<TABLE>
<S> <C>
<CAPTION>
1) Shareholder transaction expenses: Expenses charged directly to your
individual account in the Fund for various transactions.
Sales commissions to purchase shares (sales load) NONE
Commissions to reinvest dividends NONE
Redemption fees NONE*
Fees to exchange shares NONE
2) Annual Fund operating expenses: Estimated expenses paid by the Fund before
it distributes its net investment income, expressed as a percentage of the
Fund's average daily net assets for the fiscal year ended June 30, 1998.
Investment management fee (after waiver) 0.80%**
12b-1 fees NONE
Other expenses (after reimbursements) 0.75%**
-----
Total Fund operating expenses (after waiver and/or 1.55%**
reimbursements) =====
</TABLE>
Example
Based on the level of total Fund operating expenses listed above, the total
expenses relating to a $1,000 investment, assuming a 5% annual return and
redemption at the end of each period, are listed below. Investors do not pay
these expenses directly; they are paid by the Fund before it distributes its
net investment income to shareholders. (As noted above, the Fund has no
redemption fees of any kind.)
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$16 $49 $84 $185
See "Fund organization--Investment adviser" for further information about the
investment management fee. This example assumes reinvestment of all dividends
and distributions and that the percentage amounts listed under "Annual Fund
operating expenses" 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.
* You may redeem by writing or calling the Fund. If you wish to receive your
redemption proceeds via wire, there is a $5 wire service fee. For
additional information, please refer to "Transaction information--Redeeming
shares."
** For the period January 1, 1998 to October 31, 1998, the Adviser and certain
of its subsidiaries have agreed to waive and/or reimburse all or portions
of their fees payable by the Fund to the extent necessary so that the total
annualized expenses of the Fund do not exceed 1.50% of average daily net
assets. If the Adviser and its subsidiaries had not agreed to waive all or
portions of their fees, annualized Fund expenses would have been:
investment management fee 0.85%, other expenses 0.51% and total operating
expenses 1.36% for the fiscal year ended June 30, 1997. For the fiscal year
ended June 30, 1998, it is estimated that if the Adviser and its
subsidiaries had not agreed to waive all or portions of their fees,
annualized Fund expenses would be: investment management fee 0.85%, other
expenses 0.75% and total operating expenses 1.60%.
December 31, 1997 CODE
