[Image] Scudder Global Discovery Fund Profile
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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
April 1, 1997
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1. What Is The Fund's Objective?
Scudder Global Discovery Fund seeks to provide above-average capital
appreciation over the long term by investing primarily in the equity
securities of small companies located throughout the world.
2. What Does The Fund Invest In?
The Fund normally invests at least 65% of its total assets in the
equity securities of small, rapidly growing companies that offer the
potential for above-average returns relative to larger companies, yet
are frequently overlooked and thus undervalued by the market. The Fund
invests primarily in companies whose individual equity market
capitalization would place them in the same size range as companies in
approximately the lowest 20% of world market capitalization as
represented by the Salomon Brothers Broad Market Index. Equity
securities in which the Fund may invest consist of common stocks,
preferred stocks (either convertible or non-convertible), rights and
warrants. For capital appreciation purposes, the Fund may purchase
notes, bonds, debentures, government securities and zero coupon bonds
(any of which may be convertible or non-convertible). The Fund has the
flexibility to invest in any region of the world, and intends to
allocate investments among at least three countries at all times, one
of which may be the United States.
The Fund's investment adviser, Scudder, Stevens & Clark, Inc. invests
the Fund's assets in companies it believes offer above-average
earnings, cash flow or asset growth potential, and which may receive
greater market recognition over time. When evaluating an individual
company, the adviser takes into consideration numerous factors,
including the depth and quality of management; a company's product
line, business strategy and competitive position; research and
development efforts; financial strength, including degree of leverage;
cost structure; revenue and earnings growth potential; price-earning
ratios and other stock valuation measures.
Up to 35% of total assets my be invested in equity securities of
larger companies around the world and in debt securities.
3. What Are The Risks Of Investing In The Fund?
The Fund involves above-average stock market risk. Global investing
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. 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 and less
government supervision of securities exchanges. These considerations
are usually more of a concern in developing countries in which the
Fund may invest. Some of the Fund's investments are 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.
In addition, small companies may have limited product lines, markets
or financial resources; may lack management depth or experience; and
may be more vulnerable to adverse general market or economic
developments than large companies. The prices of small company
securities are often more volatile than prices associated with large
company issues, and can display abrupt or erratic movements at times,
due to limited trading volumes and less publicly available
information.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking above-average
long-term capital appreciation and:
o are willing to accept above-average stock market risk,
o can tolerate fluctuations in share price,
o understand the risks associated with global investing, 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 Global Discovery 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 October 31,
1996. For the fiscal year ended October 31, 1996, Scudder did not
charge a portion of its fee, with the result that the total
annualized expenses of the Fund did not exceed 1.60%. If Scudder had
charged that portion of its fee, Fund expenses would have been:
investment management fee 1.10%, other expenses 0.51% and total
operating expenses 1.61%.
Investment management fee 1.09%
12b-1 fees None
Other expenses 0.51%
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Total Fund operating expenses 1.60%
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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
$16 $50 $87 $190
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 September 10, 1991, assuming reinvestment of all
distributions. Performance is historical and may not be indicative of
future results. Total return and principal value will fluctuate.
THE ORIGINAL DOCUMENT CONTAINS A BAR CHART HERE
BAR CHART TITLE: Total Returns for years ended December 31:
BAR CHART DATA:
1992 -0.07%
1993 38.18
1994 -7.68
1995 17.84
1996 21.47
The Fund's Average Annual One Year Five Years Life of Fund
Total Return for the period ------------------------------------
ended March 31, 1997 8.68% 11.61% 11.21%
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 Gerald J. Moran has set the Fund's investment
strategy and overseen its daily operation since the Fund was
introduced in 1991. Mr. Moran joined Scudder's equity research and
management area in 1968 as an analyst and has focused on small company
stocks since 1982 and has been a portfolio manager since 1985.
Elizabeth Allan, Portfolio Manager, who joined the team in 1994,
concentrates on the Fund's Pacific Basin investments. Ms. Allan, who
has been a portfolio manager at Scudder since 1991, joined the firm in
1987 as a member of the portfolio management team of a Scudder
closed-end mutual fund concentrating its investments in Asia.
Joan Gregory, Portfolio Manager, joined the team in 1994 and focuses
on stock selection, a role she has played since she joined Scudder in
1992. Ms. Gregory has been involved with investment in global and
international stocks as an assistant portfolio manager since 1989.
Sewall Hodges, Portfolio Manager, joined Scudder in 1995 and the team
in 1996. Mr. Hodges, who has eleven years of experience in global
analysis and portfolio management, focuses on the Fund's stock
selection and research.
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
($1,000 for IRAs), except that shareholders may open a regular account
with a minimum of $1,000 if an investment program of at least
$100/month is established. A shareholder with a non-fiduciary account
who maintains an account balance of less than $2,500 without
establishing an investment program, may be assessed an annual fee of
$10.00, payable to the Fund. 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?
The Fund typically makes dividend and capital gains distributions, if
any, in 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 distributions are
taxable as ordinary income. A portion of dividends from ordinary
income may qualify for the dividends-received deduction for
corporations.
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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