[Image] Scudder Global 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
November 1, 1997
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1. What Are The Fund's Objectives?
The Fund seeks to provide total return, with an emphasis on current
income by investing primarily in high-grade bonds denominated in
foreign currencies and the U.S. dollar. As a secondary objective the
Fund will seek capital appreciation.
2. What Does The Fund Invest In?
The Fund invests principally in a managed portfolio of high-grade
intermediate- (maturities generally three to eight years) and
long-term bonds (maturities generally greater than eight years)
denominated in the U.S. dollar and foreign currencies, including bonds
denominated in the European Currency Unit (ECU). 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 market risk. The
Fund attempts to actively manage currency risk through a disciplined
currency management program. The Fund intends to select investments
from a number of country and market sectors and will have investments
in debt securities of issuers from a minimum of three different
countries.
At least 65% of the Fund's total assets will consist of high-grade
debt securities, which are those rated in the three highest rating
categories of Moody's Investors Service, Inc. (Aaa, Aa, or A) or
Standard & Poor's (AAA, AA, or A), or their equivalents in local
currency terms as determined by the Fund's investment adviser,
Scudder, Stevens & Clark, Inc. The Fund may also invest up to 15% of
its net assets in debt securities rated BBB by S&P or Baa by Moody's
and lower (i.e., "junk bonds"), or, if unrated, their equivalent as
determined by the adviser. The Fund will not invest in any securities
rated B or lower.
3. What Are The Risks Of Investing In The Fund?
The share price of the Fund will fluctuate in response to various
economic factors, including interest rates. In addition, in any of the
markets in which the Fund invests, longer maturity bonds tend to
fluctuate more in price as interest rates change than do shorter-term
instruments. Investing in global bonds may involve a higher degree of
risk than investing only in U.S. bonds. Investments in foreign
securities involve special considerations due to more limited
information, higher transaction costs, different accounting standards,
thinner trading markets and the likely impact of foreign taxes on the
yield from debt securities. Since the Fund's investments are primarily
denominated in foreign currencies, the Fund will incur currency
conversion costs and the strength or weakness of the U.S. dollar
against these currencies may result in fluctuations in the Fund's
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.
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. In
addition, 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.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking total return
from a globally oriented bond portfolio which combines current income
and capital appreciation and:
o plan to hold your investment for several years,
o can tolerate fluctuations in share price and yield,
o have or plan to have other investments for the benefit of
diversification, and
o understand the risks associated with global investing.
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 Global Bond Fund are:
Shareholder transaction expenses --
Expenses charged directly to your account for various transactions.
Please note that there is a $5 service fee if you request redemption
proceeds via wire.
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 October 31,
1996, during which Scudder maintained the total annualized expenses
of the Fund at 1.00% of average daily net assets. Had Scudder not
done so, total operating expenses would have amounted to 1.28%,
including 0.75% for management fees. Scudder will continue this
expense maintenance until February 28, 1998.
Investment management fee 0.47%
12b-1 fees None
Other expenses 0.53%
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Total Fund operating expenses 1.00%
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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
$10 $32 $55 $122
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.
6. How Has The Fund Performed Historically?
This chart shows how the Fund has performed since it commenced
operations on March 1, 1991, assuming reinvestment of all
distributions. Performance is historical and is no guarantee of future
results. Total return and principal value will fluctuate. The Fund's
30-day net annualized SEC yield on September 30, 1997 was 5.54%.
THE ORIGINAL DOCUMENT CONTAINS A BAR CHART HERE.
BAR CHART TITLE: Total returns for years ended December 31:
BAR CHART DATA: 1992 5.49%
1993 6.74
1994 -1.13
1995 7.74
1996 3.11
The Fund's Average Annual Total Return
for the period ended September 30, 1997
One Year 2.37%
Five Year 3.16%
Life of Fund 4.63%
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.
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 Scudder
investment professionals who each play an important role in the Fund's
management process.
Lead Portfolio Manager Gary P. Johnson assumed responsibility for the
Fund's day-to-day management and investment strategies in 1997. Mr.
Johnson, who has 16 years of investment industry experience, joined
Scudder in 1987 and is Director of Scudder's Fixed Income and
Derivative's Research. Portfolio Manager Adam Greshin, who specializes
in global and international bond investments, joined the Fund's team
in 1995. Mr. Greshin joined Scudder in 1986 as an international bond
analyst.
Christopher B. Steward, Portfolio Manager, joined the Fund's team in
1996 and contributes to the Fund's research and security selection.
Prior to joining Scudder in 1992, Mr. Steward spent five years as an
investment analyst.
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 a
nonfiduciary 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 December. You may elect to
receive distributions in cash or have them reinvested in additional
shares of the Fund.
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.
Shareholders may be able to claim a credit or deduction on their
income tax returns for their pro rata portions of qualified taxes paid
by the Fund to foreign countries.
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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