[Image] Scudder International Bond Fund Profile [Image]
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The fund profile, a supplement to the full prospectus, is designed as
an easy-to-read summary of fund risks, fees, and objectives. You can
click on any question to link to the Fund's prospectus and get more
information on that topic. Or, if you wish, you can proceed directly
to the Fund's prospectus. Once you have read the prospectus and
considered your investment goals, you can proceed to a Scudder Funds
application.
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Fund Profile
July 1, 1997
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1. What Are The Fund's Objectives?
Scudder International Bond Fund seeks to provide income primarily by
investing in a managed portfolio of high-grade international bonds. As
a secondary objective, the Fund seeks protection and possible
enhancement of principal value by actively managing currency, bond
market and maturity exposure and by security selection.
2. What Does The Fund Invest In?
The Fund invests primarily in high-grade international bonds. These
high-grade debt securities will be rated in one of the three highest
rating categories of Moody's Investors Service, Inc. (Aaa, Aa or A) or
Standard & Poor's (AAA, AA, or A) or, if not rated, considered to be
of equivalent quality in local currency terms by the Fund's investment
adviser, Scudder, Stevens & Clark, Inc. The Fund will normally invest
at least 65% of its total assets in bonds denominated in foreign
currencies which may include the European Currency Unit (ECU). In
addition, the Fund may purchase debt securities rated BBB, BB or B by
S&P or Baa, Ba or B by Moody's, and unrated securities considered to
be of equivalent quality by the adviser, but only to the extent that
up to 15% of total assets may be invested in securities rated below
BBB by S&P or Baa by Moody's (i.e., "junk bonds").
The Fund's investments may include debt securities issued or
guaranteed by a foreign national government, its agencies,
instrumentalities or political subdivisions; debt securities issued or
guaranteed by supranational organizations; corporate debt securities;
bank or bank holding company debt securities; other debt securities,
including those convertible into common stock. Portfolio investments
will be selected on the basis of, among other things, yields, credit
quality, and the fundamental outlooks for currency and interest rate
trends in different parts of the globe, taking into account the
ability to hedge a degree of currency or local bond price risk. The
Fund attempts to actively manage currency risk through a disciplined
currency management program.
The Fund intends to select its investments from a number of market
sectors. It intends to have investments in securities of issuers from
a minimum of three different countries; however, the Fund may invest
substantially all of its assets in securities of issuers located in
one country.
3. What Are The Risks Of Investing In The Fund?
Investment in foreign securities involves economic and political
considerations and possibly legal restrictions not typically found in
U.S. markets, which may affect the value of the Fund's investments.
Also, investment in foreign securities involves more limited
information, higher brokerage costs, different accounting standards,
thinner trading markets, the likely impact of foreign taxes on the
income and gains from securities, fluctuation of interest rates, and
less government supervision of securities exchanges. The Fund's
investments are generally denominated in foreign currencies,
therefore, the Fund may incur currency conversion costs and the
strength or weakness of the U.S. dollar against these currencies may
result in fluctuations of share price, which is 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 smaller number
of issuers, which will subject it to greater market and credit risk
than a diversified Fund. Furthermore, the Fund's holdings in unrated
securities and securities rated below investment-grade (i.e., "junk
bonds") carry a greater risk of default and more price volatility than
securities rated investment-grade.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking income and
potential capital appreciation through a managed portfolio of foreign
debt securities and:
o plan to hold your investment for several years,
o can tolerate fluctuations in share price during the interim, and
o have or plan to have other investments for the benefit of
diversification.
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 International Bond Fund are:
Shareholder transaction expenses --
Expenses 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 --
Expenses 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 June 30, 1996.
Investment management fee 0.85%
12b-1 fees None
Other expenses 0.41%
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Total Fund operating expenses 1.26%
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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
$13 $ 40 $69 $152
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.
6. How Has The Fund Performed Historically?
This chart shows how the Fund has performed since it commenced
operations on July 6, 1988, 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 June 30, 1997 was 4.47%.
THE ORIGINAL DOCUMENT CONTAINS A BAR CHART HERE.
The Fund's Average Annual Total Return
for the period ended June 30, 1997
One Year 0.94%
Five Years 3.26%
Life of Fund 8.47%
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. The Fund is managed by a team of
investment professionals, who each play an important role in the
Fund's management process.
Lead Portfolio Manager Gary Johnson assumed responsibility for the
Fund's day-to-day management and investment strategies in February
1997. Mr. Johnson, who has 16 years of investment industry experience,
joined Scudder in 1987. Portfolio Manager Adam M. Greshin specializes
in global and international bond investments. Mr. Greshin was involved
in the original design of Scudder International Bond Fund and has been
a portfolio manager of the Fund since its inception in 1988.
Christopher B. Steward, Portfolio Manager, joined Scudder in 1992 and
the Fund's team in 1996. Mr. Steward, who has nine years of investment
industry experience, helps set the Fund's investment strategy and
contributes special expertise in European investments.
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 $2,500,
except that shareholders may open an account with at least $1,000 if
an automatic investment plan of $100/month is established. Scudder
retirement plans and certain other accounts have similar or lower
minimum share balance requirements. A shareholder who maintains an
account balance of less than $2,500 without establishing an automatic
investment plan, will be assessed an annual fee of $10.00, payable to
the Fund. Retirement accounts and certain other accounts will not be
assessed the $10.00 charge. You may also exchange Fund shares free of
charge within the Scudder Family of Funds.
9. How Can I Redeem Shares?
You may redeem shares at the current share price on any business day
by telephone, fax, or mail.
10. When Are Distributions Made?
Dividends are declared daily and distributed monthly. Capital gains
distributions, if any, will be made in November or December. You may
elect to receive distributions in cash or have them reinvested in
additional shares of the Fund.
Generally, dividends from net investment income are taxable to
shareholders as ordinary income. Long-term capital gains
distributions, if any, are taxable as long-term capital gains
regardless of the length of time shareholders have owned their shares.
Short-term capital gains and any other taxable income distributions
are taxable as ordinary income.
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, Scudder Perspectives
o regular, informative reports about the performance of your Fund
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[Image]Scudder wants you to make informed investment decisions. This
Fund Profile contains key information about the Fund. If you would
like more information before you invest, please consult the Fund's
accompanying prospectus. For details about the Fund's holdings or
recent investment strategies, please review the Fund's most recent
annual or semiannual report. The reports are free and may be ordered
by calling 1-800-225-2470.
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