This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
Scudder Gold Fund
Semiannual Report
December 31, 1994
* A convenient and cost-effective way to broaden a portfolio of stocks,
bonds, and money market investments. Offers potential for maximum
return from a portfolio of gold and gold-related investments in
exchange for above-average risk.
* A pure no-load(tm) fund with no commissions to buy, sell, or exchange
shares.
2 Highlights
3 Letter from the Fund's President
4 Performance Update
5 Portfolio Summary
6 Portfolio Management Discussion
9 Investment Portfolio
14 Consolidated Financial Statements
17 Consolidated Financial Highlights
18 Notes to Consolidated Financial Statements
23 Report of Independent Accountants
24 Tax Information
25 Officers and Directors
26 Investment Products and Services
27 How to Contact Scudder
* The Fund provided a total return of -2.19% for the six months ended
December 31, 1994, as gold prices fluctuated in a narrow range and
inflation remained relatively quiescent around the globe.
Total Returns for Gold and Gold Funds
(Periods ended December 31, 1994)
<TABLE>
<CAPTION>
6 months 12 months
-------- ---------
<S> <C> <C>
Gold Bullion, London p.m. fix -1.48 -2.42
Platinum, free market price 3.35 5.84
Toronto Stock Exchange Gold Index 0.48 -10.41
Lipper Average for Gold-Oriented Funds -1.29 -12.24
Scudder Gold Fund -2.19 -7.46
Past performance does not guarantee future results.
</TABLE>
* During the six-month period, Scudder Gold Fund continued to reduce its
bullion holdings, from roughly 16% to 7% of portfolio assets, and
added stocks of higher-cost gold producers for their appreciation
potential.
Dear Shareholders,
The world's financial markets were shaken repeatedly in 1994 by a
variety of events. Rising global interest rates, losses for investors in
highly leveraged derivatives, and a series of unsettling political and
economic events created significant challenges for investors. Even gold and
gold stocks -- traditionally viewed as a haven in times of uncertainty or
rising inflation -- failed to move forward appreciably as market sentiment
remained negative throughout much of the year.
As 1995 unfolds, we expect a combination of factors, including the
U.S. Federal Reserve's tightening efforts, to keep the economy and
inflation on a moderate course, not only in the United States but globally
as well. The pressure to maintain high interest rates should continue,
however, due in part to the global shortage of available investment
capital, which has caused many countries to maintain relatively high rates.
Meanwhile, corporate profits around the world continue to grow, and
business investment is at an all-time high, which should translate into
expanded economic capacity down the road. We believe these developments
will ultimately be viewed as positive by the financial markets.
Even so, the current trend of global expansion will include occasional
episodes of difficult adjustment. In times such as these, it's more
important than ever to have a sound investment plan that can weather market
storms. Experience has shown us that maintaining a diversified portfolio
and a regular program of investing can add to overall portfolio performance
in the long term. Such periodic investments can, in fact, help make share
price volatility work for you, since this strategy allows you to buy more
shares when prices are down, assuming prices of your investments eventually
turn back up.
If you have questions about your Fund or your investments, contact a
Scudder Investor Relations representative at 1-800-225-2470. Page 27
provides more information on how to contact Scudder. Thank you for choosing
Scudder Gold Fund to help meet your investment needs.
Sincerely,
/s/Daniel Pierce
Daniel Pierce
President,
Scudder Gold Fund
<PAGE>
Scudder Gold Fund
Performance Update as of December 31, 1994
- -----------------------------------------------------------------
Growth of a $10,000 Investment
- -----------------------------------------------------------------
Scudder Gold Fund
- ----------------------------------------
Total Return
Period Growth -------------
Ended of Average
12/31/94 $10,000 Cumulative Annual
- --------- ------- ---------- -------
1 Year $ 9,254 -7.46% -7.46%
5 Year $10,411 4.11% .81%
Life of
Fund* $10,600 6.00% .93%
S&P 500 Index
- --------------------------------------
Total Return
Period Growth -------------
Ended of Average
12/31/94 $10,000 Cumulative Annual
- --------- ------- ---------- -------
1 Year $10,132 1.32% 1.32%
5 Year $15,174 51.74% 8.69%
Life of
Fund* $20,598 105.98% 12.26%
* The Fund commenced operations on September 2, 1988.
Index comparisons begin September 30, 1988.
A chart in the form of a line graph appears here,
illustrating the Growth of a $10,000 Investment.
The data points from the graph are as follows:
Yearly periods ended December 31
Scudder Gold Fund
Year Amount
- ----------------------
9/30/88 10000
88 9659
89 10690
90 8908
91 8291
92 7541
93 12026
94 11129
S&P 500 Index
Year Amount
- ----------------------
9/30/88 10000
88 10309
89 13575
90 13154
91 17161
92 18469
93 20330
94 20598
S&P 500 Index is an unmanaged capitalization-weighted measure
of 500 widely held common stocks listed on the New York Stock
Exchange, American Stock Exchange, and Over-The-Counter market.
Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees or expenses.
- -----------------------------------------------------------------
Returns and Per Share Information
- -------------------------------------------------------------------
A chart in the form of a bar graph appears here,
illustrating the Fund Total Return (%) and Index Total
Return (%) with the exact data points listed in the table
below.
Yearly periods ended December 31
- ----------------------------------
<TABLE>
<S>
<C> <C> <C> <C> <C> <C> <C>
1988* 1989 1990 1991 1992 1993 1994
---------------------------------------------------------
Net Asset Value..... $11.04 $12.12 $10.10 $ 9.40 $ 8.55 $13.36 $11.71
Income Dividends.... $ -- $ .01 $ -- $ -- $ -- $ .24 $ .25
Capital Gains &
Other Distributions. $ -- $ .09 $ -- $ -- $ -- $ -- $ .47
Fund Total
Return (%).......... -8.00 10.67 -16.67 -6.93 -9.04 59.47 -7.46
Index Total
Return (%).......... 3.08 31.63 -3.11 30.40 7.61 10.06 1.32
</TABLE>
All performance is historical, assumes reinvestment of all dividends and
capital gains, and is not indicative of future results.
Investment return and principal value will fluctuate, so an investor's
shares, when redeemed, may be worth more or less than when purchased.
If the Adviser had not temporarily capped expenses, the average annual
total return for the 5 year and life of fund would have been lower.
Portfolio Summary as of December 31, 1994
- ---------------------------------------------------------------------------
Diversification
- ---------------------------------------------------------------------------
As a percentage of net assets
Equity Securities 90% The Fund continued to reduce its
Precious Metals 7% direct exposure to gold bullion,
Cash Equivalents, net 3% focusing instead on high-cost gold
---- producers with appreciation potential
100% in a positive gold price environment.
====
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- --------------------------------------------------------------------------
Quality Distribution
- --------------------------------------------------------------------------
Tier breakdown of the Fund's common stocks
Tier I Premier gold producing
companies 25%
Tier II Major established gold
producers 34% We are maintaining our emphasis on
Tier III Junior gold producers quality, with 59% of portfolio
with medium cost holdings in Tier I and Tier II
production 18% companies.
Tier IV Companies with some
gold production on
stream or in startup 8%
Tier V Primarily exploration
companies with or
without mineral
reserves 15%
----
100%
====
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- --------------------------------------------------------------------------
Ten Largest Equity Holdings
- --------------------------------------------------------------------------
1. Pioneer Group Inc.
Fund management company owning major gold producer in Ghana
2. Stillwater Mining Co.
Exploration and development of mines in Montana producing
platinum, palladium and associated metals
3. Placer Dome Inc.
International gold, silver, and copper mining
4. Newmont Mining Corp.
International gold exploration and mining company
5. Hemlo Gold Mines, Inc.
Large Canadian gold producer
6. Santa Fe Pacific Gold Corp.
Major domestic gold mining company
7. Ashanti Goldfields Co., Ltd.
Operator of world class gold mine in Ghana
8. Cambior, Inc.
Medium-sized gold producer bringing into production a major mine in
Guyana
9. American Barrick Resources Corp.
World's largest gold producer outside South Africa
10. Homestake Mining Co.
Major international gold producer
During the period we added Stillwater Mining Company, a Tier III firm we
believe will eventually move up to Tier I status.
For more complete details about the Fund's Investment Portfolio, see page 9.
A monthly investment portfolio summary is available upon request.
<PAGE>
PORTFOLIO MANAGEMENT DISCUSSION
Dear Shareholders,
The market for gold bullion and gold stocks took a wait-and-see stance
during the second half of 1994, and the performance of Scudder Gold Fund
reflected this sentiment. The Fund posted a -2.19% total return during the
six months ended December 31, 1994. This return stemmed from a decline in
net asset value from $12.64 on June 30 to $11.71 on December 31, combined
with $0.248 in income and $0.465 in capital gain distributions per share.
The Fund's six-month total return contrasts with a -1.29% return for the
average gold-oriented fund tracked by Lipper Analytical Services, Inc. The
past year was difficult for all gold funds. The Fund's total return for the
12 months ended December 31, 1994, was -7.46%, while the total return of
the same Lipper average was -12.24%. Lipper is an independent analyst of
mutual fund performance.
The performance of bullion, gold stocks, and Scudder Gold Fund over
the six-month period mirrors, in our opinion, a temporary lack of
conviction in the marketplace concerning the direction of the price of
gold. In contrast to what we reported last June, when gold prices were
fluctuating widely, bullion prices during this period fluctuated in a more
narrow range. The price of gold ranged from $383 to $397, a high reached on
September 30. Investors also seemed to be waiting to see whether current
prices would inhibit gold fabrication in general and jewelry fabrication in
particular.
Demand for Gold Continues to Outpace Supply
We believe the long-term price of gold has been trending upward since
early 1993, based on supply and demand factors, though there have often
been interruptions of this trend. Before 1991, world gold supply had
exceeded demand every year for the previous decade. In 1991, that trend
reversed, and demand has outstripped supply every year since. World supply
is defined by mine production, including sales by former communist
countries plus gold recovered from scrap (approximately 20% of world
supply).
In 1992 demand outpaced supply by approximately 500 metric tons.
Demand was strong in 1993 as well -- an estimated 166 metric tons greater
than supply. During the second half of 1994, jewelry demand surged by 14%,
while total fabrication demand climbed 9%. On the basis of these and other
early indicators, 1994's supply/demand relationship should be almost the
same as in 1993. With a global economic expansion underway and demand for
jewelry still accounting for 85% of world gold consumption, we believe
prospects for growth in demand during 1995 remain moderately strong.
On the supply side, annual mine production from 1991 through 1994 has
increased only 2.2% a year on average, after rising approximately 7% per
year from 1984 through 1990. We continue to project only a modest increase
in aggregate world mine capacity in 1995 -- in the 2%-2.5% range. The
largest percentage gains should come from less-developed countries with
great geological potential and governments competing for investment
capital. After this year, we expect global gold mine capacity to increase
4% a year or better as higher capital spending in this industry begins to
bear fruit.
Steady supply and moderately increasing demand should continue to
nudge the price of gold gently upward as it did the past two years. In 1993
and 1994, the average price for bullion was $360 and $384, respectively.
For 1995, we expect an average price of more than $400 an ounce and a
broader price swing than we saw in 1994, implying somewhat greater price
volatility.
Current Portfolio Strategy
Scudder Gold Fund has continued to reduce its direct exposure to
bullion, drawing down its percentage of portfolio assets from approximately
16% on June 30, 1994, to about 7% at the end of the year. We have focused
instead on the stocks of higher-cost gold producers, since in our view they
have greater potential for appreciation in a positive gold-price
environment and currently offer attractive value. During the six-month
period, we purchased Stillwater Mining Company, now the Fund's
second-largest holding. Stillwater is the only major primary producer of
platinum and palladium outside of South Africa. We believe Stillwater, with
approximately 10 million ounces of gold-equivalent reserves, represents an
extraordinary opportunity. What's more, we purchased the stock at book
value, rather than the typical price of two, three, or even four times book
value. We consider Stillwater Mining to be a Tier III firm that will soon
move up to Tier II and eventually Tier I status. (Generally, the top two
tiers represent more established, higher-quality companies; while the lower
tiers represent less-seasoned, higher-risk ventures. The "Quality
Distribution" chart on page 5 provides further explanation of our "Tier"
rating system.) We are maintaining our emphasis on quality, with 59% of the
portfolio's equity holdings in Tier I and Tier II companies, and 23% in
Tier IV and Tier V.
Historically, we have invested in the four biggest-producing gold
mining districts in the world: the Hemlo District of Ontario, Carlin in
Nevada, Papua in New Guinea, and the Witwatersrand of South Africa. But the
major gold-producing regions of the future will be located in other parts
of the world, and we have mapped out investments there as well. The four
biggest emerging areas are the Guyana Shield (which stretches from south of
the Orinoco River in Venezuela into northern Brazil), West Africa, the Alto
Plano of Peru and Bolivia, and the Indonesian archipelago extending to the
Philippines. An example of our investment in these emerging areas is
Ashanti Goldfields, the Fund's seventh largest holding as of December 31.
Ashanti has been producing gold for nearly a century in Ghana, West Africa
(currently at a rate of one million ounces per year).
In light of our outlook for flat world supply and growing fabrication
demand, we believe Scudder Gold Fund is well positioned for what we think
will be a more favorable pricing environment in 1995. As such, the Fund
remains an appropriate investment for those looking for diversification, a
hedge against inflation, and participation in the world's gold and precious
metals markets.
Sincerely,
Your Portfolio Management Team
/s/Douglas D. Donald /s/William J. Wallace
Douglas D. Donald William J. Wallace
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO as of December 31, 1994
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
% of Principal Market
Portfolio Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
6.7% REPURCHASE AGREEMENTS
--------------------------------------------------------------------------------------
6,000,000 Repurchase Agreement with Donaldson,
Lufkin and Jenrette dated 12/30/94 at
5.875%, to be repurchased on 1/3/95 at
$6,003,917, collateralized by a $5,962,000
U.S. Treasury Note, 4.25%, 1/31/95 . . . . . . . 6,000,000
----------
2,628,000 Repurchase Agreement with State Street Bank
and Trust Company dated 12/30/94 at 5.5%,
to be repurchased on 1/3/95 at $2,629,606,
collateralized by a $2,660,000 U.S. Treasury
Note, 6%, 6/30/96 . . . . . . . . . . . . . . . 2,628,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $8,628,000) . . . . . . . . . . . . . . 8,628,000
----------
2.1% CONVERTIBLE BONDS
---------------------------------------------------------------------------------------
CANADA 0.5% 500,000 Dayton Mining Corp., 7%, 1/31/99 . . . . . . . . . 660,000
UNITED STATES ----------
1.6% 2,500,000 Horsham Corp., 3.25%, 12/10/18 . . . . . . . . . . 1,993,750
----------
TOTAL CONVERTIBLE BONDS (Cost $2,910,000) . . . . 2,653,750
----------
0.8% CONVERTIBLE PREFERRED STOCKS
---------------------------------------------------------------------------------------
Shares
---------------------------------------------------------------------------------------
20,000 Amax Gold Inc. Series B (Cost $1,000,000) . . . . 970,000
----------
87.2% COMMON STOCKS
---------------------------------------------------------------------------------------
AUSTRALIA 10.1% 600,000 Acacia Resources Ltd. (Gold and mineral
exploration company with operations
throughout Australia) . . . . . . . . . . . . . 1,093,676
1,000,000 Climax Mining Ltd. (Gold exploration company
in Australia and the Fiji Islands) . . . . . . 775,656
500,000 Delta Gold NL* (Emerging junior exploration
company with important platinum property
in Zimbabwe) . . . . . . . . . . . . . . . . . 1,093,676
2,500,000 Gold Mines of Kalgoorlie (Major gold producer) . . 1,939,140
400,000 Newcrest Mining, Ltd. (Senior gold producer
and exploration company) . . . . . . . . . . . 1,784,010
550,000 Orion Resources* (Junior exploration company) . . 618,586
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
SCUDDER GOLD FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Market
Portfolio Shares Value ($)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
749,376 Poseidon Gold Ltd. (Growing Tier III gold
producer) . . . . . . . . . . . . . . . . . . . 1,569,398
700,000 Ranger Minerals NL (Gold producer and explorer
in Ghana) . . . . . . . . . . . . . . . . . . . 1,900,359
1,600,000 Ross Mining NL (Junior exploration company) . . . 1,191,408
625,000 Zapopan NL "A"* (Small emerging
gold producer) . . . . . . . . . . . . . . . . 1,018,049
-----------
12,983,958
-----------
CANADA 48.2% 200,000 Agnico Eagle Mines, Ltd. (Silver and
gold mining) . . . . . . . . . . . . . . . . . . 2,103,109
157,400 American Barrick Resources Corp. (Rapidly
growing senior North American gold producer) . . 3,502,150
280,000 Bema Gold Corp.* (Partner in development of
large Chilean gold deposit) . . . . . . . . . . 499,043
5,000 Bema Gold Corp. Special Warrants*(c) . . . . . . 500,000
140,000 Bema Gold Corp. Warrants* (expire 4/25/95)(c) . . 2,695
536,600 Bolivar Goldfields Ltd.* (Gold exploration
company in Venezuela) . . . . . . . . . . . . . 902,823
50,000 Bolivar Goldfields Ltd. Warrants*
(expire 5/4/95)(c) . . . . . . . . . . . . . . . 713
300,000 Bre-X Minerals Ltd.* (Gold exploration
company in Indonesia) . . . . . . . . . . . . . 609,545
250,000 Bre-X Minerals Ltd.*(c) . . . . . . . . . . . . . 255,225
300,000 Cambior Inc. (Medium-sized gold producer
with a major mine in Guyana) . . . . . . . . . 3,448,743
62,500 Cambior Inc. Warrants* (expire 6/30/95). . . . . . 111,394
470,600 Canarc Resources Corp.* (Exploration and
development company) . . . . . . . . . . . . . 1,174,248
250,000 Carson Gold Corp. (Gold exploration and
development company operating
in Venezuela) . . . . . . . . . . . . . . . . . 302,990
312,500 Carson Gold Corp. Warrants* (expire 12/22/95)(c) . 24,507
250,000 Crown Butte Resources Ltd.* (Small exploration
company holding an important gold deposit
in Montana) . . . . . . . . . . . . . . . . . . 632,715
25,000 Crown Butte Resources Ltd. Warrants*
(expire 3/31/95)(c) . . . . . . . . . . . . . . 2,852
200,000 Crystallex International Corp.* (Junior company
developing gold property in Venezuela) . . . . 499,043
267,000 Crystallex International Corp. Units*(c)(d) . . . 779,480
300,000 Da Capo Resources Ltd. (Mineral exploration
and development company in Bolivia) . . . . . . 834,114
125,000 Da Capo Resources Ltd. Warrants*
(expire 10/31/95)(c) . . . . . . . . . . . . . 134,029
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
INVESTMENT PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Market
Portfolio Shares Value ($)
<S> <C> <C>
250,000 Dayton Mining Corp.* (Junior company
developing Chilean gold deposits) . . . . . . 721,830
173,000 Dundee Bancorp. Inc.* (Junior mine finance
and holding company) . . . . . . . . . . . . 1,187,098
150,000 Echo Bay Mines, Ltd. (ADR)(Major North
American gold producer) . . . . . . . . . . . 1,593,750
100,000 Echo Bay Mines, Ltd. . . . . . . . . . . . . . 1,078,289
823,800 Ecuadorian Minerals Corp. (Exploration
company in Ecuador) . . . . . . . . . . . . . 910,318
185,000 Ecuadorian Minerals Corp. Warrants*
(expire 4/15/95)(c) . . . . . . . . . . . . . 2,374
650,000 El Callao Mining Corp. (Gold exploration and
development company with interests
in Venezuela) . . . . . . . . . . . . . . . . 625,585
125,000 Euro Nevada Mining Ltd. (Large North
American royalty owner) . . . . . . . . . . . 2,628,887
217,100 Golden Knight Resources, Inc. (Junior gold
producer, with recently opened mine
in Quebec) . . . . . . . . . . . . . . . . . 1,276,890
252,900 Golden Star Resources Ltd.* (Junior company,
with permits in North and South America, and
West Africa) . . . . . . . . . . . . . . . . 2,163,565
550,000 Granges Inc.* (Emerging junior gold
producer and exploration company) . . . . . . 960,658
400,000 Hemlo Gold Mines, Inc. (Large gold producer,
with single mine in Ontario; active
exploration company) . . . . . . . . . . . . 4,099,281
250,000 International Gold Resources Corp.*
(Exploration company in Ghana) . . . . . . . 784,210
50,000 International Gold Resources Corp.
Warrants* (expire 3/28/95)(c) . . . . . . . . 16,255
425,000 Kinross Gold Corp.* (Gold mining company,
with interests in Zimbabwe) . . . . . . . . . 2,196,680
550,000 Minera Rayrock Inc. "A"* (Company
developing a low cost property in Chile) . . 1,019,473
100,000 Minera Rayrock Inc. "B"* . . . . . . . . . . . 178,943
500,000 Mutual Resources Ltd. (Holder of gold prospects
in West Africa) . . . . . . . . . . . . . . 716,483
400,000 Namibian Minerals Corp.* (Diamond exploration
and development company, offshore Namibia) . 370,717
125,000 Namibian Minerals Corp. Warrants*
(expire 12/6/95)(c) . . . . . . . . . . . . . 4,456
300,000 Orvana Minerals Corp.* (International
exploration and development company). . . . . 1,015,909
20,000 Pan African Resources Corp. Units (Gold
exploration in West Africa)(c)(d) . . . . . 6,416
400,000 Pangea Goldfields Inc.* (Gold exploration
company operating in Tanzania) . . . . . . . 926,794
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
SCUDDER GOLD FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Market
Portfolio Shares Value ($)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
200,000 Pangea Goldfields Inc. Warrants*
(expire 3/22/95)(c) . . . . . . . . . . . . . . . 39,923
100,000 Pegasus Gold, Inc. (Junior gold producer, with
principal operations in western United States) . . 1,137,500
225,000 Placer Dome Inc. (International gold, silver and
copper mining) . . . . . . . . . . . . . . . . . 4,893,750
150,000 Prime Resources Group, Inc.* (Junior
gold producer in British Columbia) . . . . . . . 1,082,745
250,000 Rayrock Yellowknife Resources, Inc.* (Junior
diversified mineral producer with operations
in Nevada, Canada, and Latin America). . . . . . . 2,963,067
300,000 Redfern Resources Ltd.* (Exploration
company in British Columbia) . . . . . . . . . . 534,689
500,000 Repadre Capital Corp.* (Junior gold
royalty company) . . . . . . . . . . . . . . . . 1,069,378
350,000 Solitario Resources Corp.* (Precious and
base metals exploration company primarily in
Argentina and Peru) . . . . . . . . . . . . . . . 257,007
200,000 Southernera Resources Ltd.* (Diamond
exploration company) . . . . . . . . . . . . . . 196,765
500,000 TVX Gold, Inc.* (International gold and
silver mining) . . . . . . . . . . . . . . . . . 3,386,363
150,000 Teck Corp. "B" (Major mining complex, with
base metal interests as well as gold). . . . . . . 2,713,546
225,000 Texas Star Resources Corp.* (Diamond
exploration in Arkansas and
northern Canada)(c) . . . . . . . . . . . . . . . 160,407
350,000 Texas Star Resources Corp. . . . . . . . . . . . . 117,280
400,000 Triton Mining Corp. (Exploration and
development of mineral properties in
Central and South America) . . . . . . . . . . . 969,569
270,000 Viceroy Resource Corp.* (Gold producer
in California) . . . . . . . . . . . . . . . . . 1,539,904
-----------
61,866,172
-----------
SOUTH AFRICA 1.2% 189,700 Potgietersrust Platinum Holdings, Ltd.
(Leading platinum producer) . . . . . . . . . . . 1,512,930
-----------
UNITED STATES 27.7% 175,000 Ashanti Goldfields Co. Ltd.* (Operator of world
class gold mine in Ghana) . . . . . . . . . . . . 3,784,375
25,000 Battle Mountain Gold Co. "B" (Gold and
silver mining and processing) . . . . . . . . . . 1,525,000
324,000 Crown Resources Corp.* (Gold, silver and
mineral exploration company) . . . . . . . . . . 1,336,500
200,000 FMC Gold Co. (Medium-sized producer of
gold and silver in Nevada) . . . . . . . . . . . 675,000
217,500 FirstMiss Gold Inc.* (Gold mining in Nevada). . . . 1,875,938
22,100 Freeport McMoRan Copper & Gold, Inc.
(U.S. company mining in Indonesia) . . . . . . . . 729,300
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
INVESTMENT PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
200,000 Hecla Mining Co.* (Domestic gold and
silver producer) . . . . . . . . . . . . . . 2,025,000
200,000 Homestake Mining Co. (Major international
gold producer) . . . . . . . . . . . . . . . 3,425,000
125,000 Newmont Mining Corp. (International gold
exploration and mining company) . . . . . . . 4,500,000
759,000 Piedmont Mining Co.* (Gold and mining
development company in the Carolinas). . . . . 735,281
276,000 Pioneer Group Inc. (Fund management
company owning major gold producer in
Ghana) . . . . . . . . . . . . . . . . . . . 6,072,000
300,001 Santa Fe Pacific Gold Corp. (Major domestic
gold mining company) . . . . . . . . . . . . 3,862,513
370,454 Stillwater Mining Co. (Exploration and
development of mines in Montana producing
platinum, palladium and associated metals) . . 5,047,436
-----------
35,593,343
-----------
TOTAL COMMON STOCKS (Cost $107,161,859). . . . . 111,956,403
-----------
</TABLE>
<TABLE>
- ---------------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Net Assets Value ($)
-------------------------------------
<S> <C> <C>
INVESTMENT PORTFOLIO (Cost $119,699,859) (a) . . 96.8 124,208,153
SCUDDER PRECIOUS METALS, INC. (NOTE A):
GOLD* (Cost $7,048,926) (b) . . . . . . . . . 5.4 6,934,431
PLATINUM* (Cost $1,289,757) (b) . . . . . . . 1.1 1,430,124
OTHER ASSETS AND LIABILITIES, NET . . . . . . . (3.3) (4,184,097)
----- ------------
NET ASSETS . . . . . . 100.0 128,388,611
===== ============
<FN>
(a) The cost for federal income tax purposes was $123,136,312. At
December 31, 1994, net unrealized appreciation for all
investment securities based on tax cost was $1,071,841.
This consisted of aggregate gross unrealized appreciation
for all investments in which there was an excess of market value
over tax cost of $14,771,964 and aggregate gross unrealized
depreciation for all investment securities in which there was
an excess of tax cost over market value of $13,700,123.
(b) The cost of Gold for federal income tax purposes was $7,048,926.
At December 31, 1994, gross and net unrealized depreciation was
$114,495 based on tax cost. The cost of Platinum for federal
income tax purposes was $1,289,757. At December 31, 1994, gross
and net unrealized appreciation was $140,367 based on tax cost.
(c) Securities valued in good faith by the Valuation Committee of
the Board of Directors. The cost for these securities at
December 31, 1994, aggregated $1,170,609. See Note A of the Notes
to Consolidated Financial Statements.
(d) 1 Unit = 1 common share and 1 warrant.
* Non-income producing security or commodity.
See page 5 for the breakdown of the Fund's common stocks.
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
SCUDDER GOLD FUND
CONSOLIDATED FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1994
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments, at market (identified cost $119,699,859) (Note A) . . . . . . . . $ 124,208,153
Gold, at market, 18,129.231 oz. (identified cost $7,048,926) (Note A) . . . . . 6,934,431
Platinum, at market, 3,433.672 oz. (identified cost $1,289,757) (Note A) . . . 1,430,124
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 527
Forward foreign currency exchange contracts to buy, at market
(contract cost $463,560) (Notes A and D) . . . . . . . . . . . . . . . . . . 462,312
Receivables:
Investments sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,148,575
Fund shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,363,259
Dividends and interest . . . . . . . . . . . . . . . . . . . . . . . . . . . 152,942
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,731
-------------
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135,703,054
LIABILITIES
Payables:
Investments purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,349,915
Fund shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,286,383
Forward foreign currency exchange contracts to buy
(Notes A and D) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463,560
Accrued management fee (Note C) . . . . . . . . . . . . . . . . . . . . . . 100,817
Other accrued expenses (Note C) . . . . . . . . . . . . . . . . . . . . . . 113,768
-----------
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,314,443
-------------
Net assets, at market value . . . . . . . . . . . . . . . . . . . . . . . . . . $ 128,388,611
=============
NET ASSETS
Net assets consist of:
Accumulated distributions in excess of net investment income . . . . . . . . $(4,708,510)
Unrealized appreciation (depreciation) on:
Investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . 4,508,294
Gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (114,495)
Platinum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140,367
Foreign currency related transactions . . . . . . . . . . . . . . . . . . (1,777)
Accumulated distributions in excess of net realized gains . . . . . . . . . (868,238)
Capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109,632
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . 129,323,338
-------------
Net assets, at market value . . . . . . . . . . . . . . . . . . . . . . . . . . $ 128,388,611
=============
NET ASSET VALUE, offering and redemption price per share
($128,388,611 -:- 10,963,180 shares of capital stock outstanding,
$.01 par value, 100,000,000 shares of capital stock authorized) . . . . . . $11.71
======
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
CONSOLIDATED FINANCIAL STATEMENTS
<TABLE>
- -----------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF OPERATIONS
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
SIX MONTHS ENDED DECEMBER 31, 1994
Investment Income
Dividends (net of withholding taxes of $36,869) . . . . . . . . . . $ 413,671
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244,571
-----------
658,242
Expenses:
Management fee (Note C) . . . . . . . . . . . . . . . . . . . . . . $ 682,009
Services to shareholders (Note C) . . . . . . . . . . . . . . . . . 208,348
Directors' fees (Note C) . . . . . . . . . . . . . . . . . . . . . 10,176
Custodian fees . . . . . . . . . . . . . . . . . . . . . . . . . . 91,451
Auditing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,325
Reports to shareholders . . . . . . . . . . . . . . . . . . . . . . 36,605
Legal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,992
State registration . . . . . . . . . . . . . . . . . . . . . . . . 52,317
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,548 1,153,771
--------------------------
Net investment loss . . . . . . . . . . . . . . . . . . . . . . . . (495,529)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT
TRANSACTIONS
Net realized gain (loss) from:
Investment securities . . . . . . . . . . . . . . . . . . . . . 725,083
Gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (293,625)
Foreign currency related transactions . . . . . . . . . . . . . (8,338) 423,120
----------
Net unrealized appreciation (depreciation) during the period on:
Investment securities . . . . . . . . . . . . . . . . . . . . . (3,663,805)
Gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (240,076)
Platinum . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,797
Foreign currency related transactions . . . . . . . . . . . . . (1,841) (3,849,925)
--------------------------
Net loss on investment transactions . . . . . . . . . . . . . . . . (3,426,805)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . $(3,922,334)
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
SCUDDER GOLD FUND
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED JUNE 30,
INCREASE (DECREASE) IN NET ASSETS DECEMBER 31, 1994 1994
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment loss . . . . . . . . . . . . . . . . . . . . . . . $ (495,529) $ (928,172)
Net realized gain from investment transactions . . . . . . . . . 423,120 7,521,103
Net unrealized depreciation on investment transactions
during the period . . . . . . . . . . . . . . . . . . . . . . (3,849,925) (5,250,988)
------------- -------------
Net increase (decrease) in net assets resulting
from operations . . . . . . . . . . . . . . . . . . . . . . . (3,922,334) 1,341,943
------------- -------------
Distributions to shareholders:
In excess of net investment income ($.25 and $.24 per
share, respectively) . . . . . . . . . . . . . . . . . . . . . (2,869,449) (1,866,119)
------------- -------------
From net realized gains from investment
transactions ($.47 per share) . . . . . . . . . . . . . . . . (5,244,182) --
------------- -------------
Fund share transactions:
Proceeds from shares sold . . . . . . . . . . . . . . . . . . . . 84,347,235 247,469,583
Net asset value of shares issued to shareholders
in reinvestment of distributions . . . . . . . . . . . . . . . 7,610,893 1,714,331
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . (81,389,934) (208,913,342)
------------- -------------
Net increase in net assets from Fund share transactions . . . . . 10,568,194 40,270,572
------------- -------------
INCREASE (DECREASE) IN NET ASSETS . . . . . . . . . . . . . . . . (1,467,771) 39,746,396
Net assets at beginning of period . . . . . . . . . . . . . . . . 129,856,382 90,109,986
------------- -------------
NET ASSETS AT END OF PERIOD (including accumulated
distributions in excess of net investment income of
$4,708,510 and $1,343,532, respectively) . . . . . . . . . . . $ 128,388,611 $ 129,856,382
============= =============
OTHER INFORMATION
INCREASE (DECREASE) IN FUND SHARES
Shares outstanding at beginning of period . . . . . . . . . . . . 10,277,443 7,427,151
------------- -------------
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,635,188 19,073,576
Shares issued to shareholders in reinvestment of distributions . 588,953 145,609
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . (6,538,404) (16,368,893)
Net increase in Fund shares . . . . . . . . . . . . . . . . . . . 685,737 2,850,292
------------- -------------
Shares outstanding at end of period . . . . . . . . . . . . . . . 10,963,180 10,277,443
============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
CONSOLIDATED FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
THE FOLLOWING TABLE INCLUDES SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD AND OTHER
PERFORMANCE INFORMATION DERIVED FROM THE FINANCIAL STATEMENTS.
FOR THE PERIOD
SEPTEMBER 2, 1988
SIX MONTHS (COMMENCEMENT
ENDED YEARS ENDED JUNE 30, OF OPERATIONS)
DECEMBER 31, -------------------------------------------------- TO JUNE 30,
1994(b) 1994(b) 1993(b) 1992(b) 1991 1990 1989
------------ -------------------------------------------------- -----------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period . . . . . . . . . . . . . . . $12.64 $12.13 $ 9.19 $ 9.87 $10.21 $10.58 $12.00
------ ------ ------ ------ ------ ------ ------
Income from investment
operations:
Net investment income
(loss) (a) . . . . . . . . . . . . . . (.05) (.10) (.08) (.12) (.04) .07 (.06)
Net realized and unrealized
gain (loss) on investment
transactions . . . . . . . . . . . . . (.16) .85 3.02 (.56) (.30) (.34) (1.36)
------ ------ ------ ------ ------ ------ ------
Total from investment
operations . . . . . . . . . . . . . . (.21) .75 2.94 (.68) (.34) (.27) (1.42)
------ ------ ------ ------ ------ ------ ------
Less distributions:
From net investment income . . . . . . -- -- -- -- -- (.01) --
In excess of net investment
income . . . . . . . . . . . . . . . . (.25) (.24) -- -- -- -- --
From net realized gains on
investment transactions . . . . . . . (.47) -- -- -- -- (.03) --
From additional paid-in capital . . . . -- -- -- -- -- (.06) --
------ ------ ------ ------ ------ ------ ------
Total distributions . . . . . . . . . . (.72) (.24) -- -- -- (.10) --
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period . . . . $11.71 $12.64 $12.13 $ 9.19 $ 9.87 $10.21 $10.58
====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (%) . . . . . . . . . . . . (2.19)** 6.35 31.99 (6.89) (3.33) (2.71) (11.83)**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
($ millions) . . . . . . . . . . . . . 128 130 90 31 33 17 9
Ratio of operating expenses,
net to average daily net
assets (%) (a) . . . . . . . . . . . . 1.68* 1.69 2.17 2.54 2.54 2.60 3.00*
Ratio of net investment income
(loss) to average daily net
assets (%) . . . . . . . . . . . . . . (.72)* (.81) (.81) (1.34) (.59) .34 (1.06)*
Portfolio turnover rate (%) . . . . . . 29.8* 50.8 59.2 57.5 71.4 80.6 34.5*
(a) Reflects a per share amount
of expenses reimbursed by
the Adviser of . . . . . . . . . . . $ -- $ -- $ -- $ -- $ .02 $ .20 $ .18
Operating expense ratio
including expenses
reimbursed, management
fee and other expenses
not imposed (%) . . . . . . . . . . -- -- -- 2.57 2.82 3.74 6.59*
(b) Based on monthly average shares outstanding during the period.
<FN>
* Annualized
** Not annualized
</TABLE>
<PAGE>
SCUDDER GOLD FUND
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
A. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
Scudder Gold Fund (the "Fund") is a non-diversified series of Scudder Mutual
Funds, Inc. (the "Corporation"). The Corporation is a Maryland corporation,
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company. The policies described below are followed
consistently by the Fund in the preparation of its financial statements in
conformity with generally accepted accounting principles.
PRINCIPLES OF CONSOLIDATION. The consolidated financial statements of the Fund
include the accounts of the Fund and Scudder Precious Metals, Inc., a
wholly-owned subsidiary of the Corporation, whose principal assets are precious
metals. All intercompany accounts and transactions have been eliminated.
SECURITY VALUATION. Portfolio securities which are traded on U.S. or foreign
stock exchanges are valued at the most recent sale price reported on the
exchange on which the security is traded most extensively. If no sale occurred,
the security is then valued at the calculated mean between the most recent bid
and asked quotations. If there are no such bid and asked quotations, the most
recent bid quotation is used. Securities quoted on the National Association of
Securities Dealers Automatic Quotation ("NASDAQ") System, for which there have
been sales, are valued at the most recent sale price reported on such system.
If there are no such sales, the value is the high or "inside" bid quotation.
Securities which are not quoted on the NASDAQ System but are traded in another
over-the-counter market are valued at the most recent sale price on such
market. If no sale occurred, the security is then valued at the calculated mean
between the most recent bid and asked quotations. If there are no such bid and
asked quotations, the most recent bid quotation shall be used.
Portfolio debt securities with remaining maturities greater than sixty days are
valued by pricing agents approved by the Officers of the Fund, which prices
reflect broker/dealer-supplied valuations and electronic data processing
techniques. If the pricing agents are unable to provide such quotations, the
most recent bid quotation supplied by a bona fide market maker shall be used.
Short-term investments having a maturity of sixty days or less are valued at
amortized cost. All other securities are valued at their fair value as
determined in good faith by the Valuation Committee of the Board of Directors.
Securities valued in good faith by the Valuation Committee of the Board of
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Directors at fair value amounted to $1,929,332 (1.5% of net assets) and have
been noted in the investment portfolio as of December 31, 1994.
PRECIOUS METALS VALUATION. Gold bullion will be valued on quotations obtained
from U.S. dealers and on the London afternoon gold price. Precious metals other
than gold will be valued on current prices provided by market makers.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
certain banks and broker/dealers whereby the Fund, through its custodian,
receives delivery of the underlying securities, the amount of which at the time
of purchase and each subsequent business day is required to be maintained at
such a level that the market value, depending on the maturity of the repurchase
agreement and the underlying collateral, is equal to at least 100.5% of the
resale price.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Fund are maintained
in U.S. dollars. Foreign currency transactions are translated into U.S. dollars
on the following basis:
(i) market value of investment securities, other assets and
liabilities at the daily rates of exchange, and
(ii) purchases and sales of investment securities, dividend and
interest income and certain expenses at the rates of exchange
prevailing on the respective dates of such transactions.
The Fund does not isolate that portion of gains and losses on investments which
is due to changes in foreign exchange rates from that which is due to changes
in market prices of the investments. Such fluctuations are included with the
net realized and unrealized gains and losses from investments.
Net realized and unrealized gain (loss) from foreign currency related
transactions includes gains and losses between trade and settlement dates on
securities transactions, gains and losses arising from the sales of foreign
currency, and gains and losses between the ex and payment dates on dividends,
interest, and foreign withholding taxes.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS. In connection with portfolio
purchases and sales of securities denominated in a foreign currency, the Fund
may enter into forward foreign currency exchange contracts ("contracts").
<PAGE>
SCUDDER GOLD FUND
- --------------------------------------------------------------------------------
Additionally, the Fund may enter into contracts to hedge certain other
foreign currency denominated assets. Contracts are recorded at market value.
Certain risks may arise upon entering into these contracts from the potential
inability of counterparties to meet the terms of their contracts. Realized and
unrealized gains and losses arising from such transactions are included in net
realized and unrealized gain (loss) from foreign currency related transactions.
FEDERAL INCOME TAXES. The Fund's policy is to comply with the requirements of
the Internal Revenue Code which are applicable to regulated investment
companies, and to distribute all of its taxable income to its shareholders. The
Fund paid no federal income taxes and no federal income tax provision was
required.
DISTRIBUTION OF INCOME AND GAINS. Distributions of net investment income are
made annually. During any particular year net realized gains from investment
transactions, in excess of available capital loss carryforwards, would be
taxable to the Fund if not distributed and, therefore, will be distributed to
shareholders. An additional distribution may be made to the extent necessary to
avoid the payment of a four percent federal excise tax. The Fund uses the
identified cost method for determining realized gain or loss on investments for
both financial and federal income tax reporting purposes.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax
regulations which may differ from generally accepted accounting principles.
These differences relate primarily to investments in passive foreign investment
companies. As a result, net investment income (loss) and net realized gain
(loss) on investment transactions for a reporting period may differ
significantly from distributions during such period. Accordingly, the Fund may
periodically make reclassifications among certain of its capital accounts
without impacting the net asset value of the Fund.
OTHER. Investment security and precious metals transactions are accounted for
on a trade date basis. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income is recorded on the accrual
basis. All original issue discounts are accreted for both tax and financial
reporting purposes.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
B. PURCHASES AND SALES
- --------------------------------------------------------------------------------
For the six months ended December 31, 1994, purchases and sales of investment
securities (excluding short-term investments) aggregated $33,577,874 and
$18,656,930, respectively. During the six months ended December 31, 1994,
purchases and sales of gold aggregated $5,431,517 and $17,915,100,
respectively.
C. RELATED PARTIES
- --------------------------------------------------------------------------------
Under the Fund's Investment Advisory Agreement (the "Agreement") with Scudder,
Stevens & Clark, Inc. (the "Adviser"), the Fund agrees to pay to the Adviser a
fee equal to an annual rate of 1% of the Fund's average net assets, computed
and accrued daily and payable monthly. For the six months ended December 31,
1994, the fee pursuant to the Agreement amounted to $682,009. However, the
Adviser has agreed to absorb a portion of expenses in order to maintain the
annualized expenses of the Fund at not more than 3% of the average net assets
until October 31, 1995. The Adviser did not absorb any expenses for the six
months ended December 31, 1994. The Agreement also provides that if the Fund's
expenses, exclusive of taxes, interest and extraordinary expenses, exceed the
lowest applicable state expense limitation, such excess up to the amount of the
management fee will be paid by the Adviser.
Scudder Service Corporation ("SSC"), a wholly-owned subsidiary of the Adviser,
is the transfer, dividend paying and shareholder service agent. For the six
months ended December 31, 1994, the amount charged to the Fund by SSC
aggregated $156,558, of which $26,104 is unpaid at December 31, 1994.
The Fund pays each Director not affiliated with the Adviser $4,000 annually,
plus specified amounts for attended board and committee meetings. For the six
months ended December 31, 1994, Directors' fees aggregated $10,176.
<PAGE>
SCUDDER GOLD FUND
- --------------------------------------------------------------------------------
D. COMMITMENTS
- --------------------------------------------------------------------------------
As of December 31, 1994, the Fund had entered into the
following forward foreign currency exchange contracts
resulting in net unrealized depreciation of $1,248.
<TABLE>
<CAPTION>
NET UNREALIZED
APPRECIATION
(DEPRECIATION)
CONTRACTS TO DELIVER IN EXCHANGE FOR SETTLEMENT DATE (U.S.$)
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S.$ 79,474 CAD 111,375 1/3/95 260
U.S.$ 384,086 CAD 538,258 1/6/95 (1,508)
------
(1,248)
======
</TABLE>
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
TO THE BOARD OF DIRECTORS OF SCUDDER MUTUAL FUNDS, INC. AND THE SHAREHOLDERS OF
SCUDDER GOLD FUND:
We have audited the accompanying consolidated statement of assets and
liabilities of Scudder Gold Fund, including the investment portfolio, as of
December 31, 1994, and the related consolidated statement of operations for the
six-month period then ended, the consolidated statements of changes in net
assets for the six-month period then ended, and for the year ended June 30,
1994, and the consolidated financial highlights for the six-month period ended
December 31, 1994, for each of the five years in the period ended June 30,
1994, and for the period September 2, 1988 (commencement of operations) to June
30, 1989. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities and precious
metals owned as of December 31, 1994, by correspondence with the custodians and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the consolidated financial
position of Scudder Gold Fund as of December 31, 1994, the consolidated results
of its operations for the six-month period then ended, the consolidated changes
in its net assets for the six-month period then ended and for the year ended
June 30, 1994, and the consolidated financial highlights for the six-month
period ended December 31, 1994, for each of the five years in the period ended
June 30, 1994, and for the period September 2, 1988 (commencement of
operations) to June 30, 1989 in conformity with generally accepted accounting
principles.
Boston, Massachusetts COOPERS & LYBRAND L.L.P.
February 3, 1995
<PAGE>
SCUDDER GOLD FUND
TAX INFORMATION
- --------------------------------------------------------------------------------
By now shareholders to which year-end tax reporting is required by the IRS
should have received their Form 1099-DIV and tax information letter from the
Fund.
Please consult a tax adviser if you have any questions about federal or state
income tax laws, or on how to prepare your tax returns. If you have specific
questions about your Scudder Fund account, please call a Scudder Investor
Relations Representative at 1-800-225-5163.
<PAGE>
OFFICERS AND DIRECTORS
Daniel Pierce*
President and Director
Thomas J. Devine
Director; Consultant
Gordon Shillinglaw
Director; Professor Emeritus of Accounting, Columbia University
Graduate School of Business
Robert G. Stone, Jr.
Director; Chairman of the Board, Kirby Corporation
Douglas M. Loudon*
Vice President and Director
Jerard K. Hartman*
Vice President
Thomas W. Joseph*
Vice President
David S. Lee*
Vice President
Thomas F. McDonough*
Vice President and Secretary
Pamela A. McGrath*
Vice President and Treasurer
Edward J. O'Connell*
Vice President and Assistant Treasurer
Juris Padegs*
Vice President and Assistant Secretary
Kathryn L. Quirk*
Vice President and Assistant Secretary
Coleen Downs Dinneen*
Assistant Secretary
* Scudder, Stevens & Clark, Inc.
INVESTMENT PRODUCTS AND SERVICES
The Scudder Family of Funds
Money market
Scudder Cash Investment Trust
Scudder U.S. Treasury Money Fund
Tax free money market+
Scudder Tax Free Money Fund
Scudder California Tax Free Money Fund*
Scudder New York Tax Free Money Fund*
Tax free+
Scudder California Tax Free Fund*
Scudder High Yield Tax Free Fund
Scudder Limited Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder Massachusetts Limited Term Tax Free Fund*
Scudder Massachusetts Tax Free Fund*
Scudder Medium Term Tax Free Fund
Scudder New York Tax Free Fund*
Scudder Ohio Tax Free Fund*
Scudder Pennsylvania Tax Free Fund*
Growth and Income
Scudder Balanced Fund
Scudder Growth and Income Fund
Income
Scudder Emerging Markets Income Fund
Scudder GNMA Fund
Scudder Income Fund
Scudder International Bond Fund
Scudder Short Term Bond Fund
Scudder Short Term Global Income Fund
Scudder Zero Coupon 2000 Fund
Growth
Scudder Capital Growth Fund
Scudder Development Fund
Scudder Global Fund
Scudder Global Small Company Fund
Scudder Gold Fund
Scudder Greater Europe Growth Fund
Scudder International Fund
Scudder Latin America Fund
Scudder Pacific Opportunities Fund
Scudder Quality Growth Fund
Scudder Value Fund
The Japan Fund
Retirement Plans and Tax-Advantaged Investments
IRAs
Keogh Plans
Scudder Horizon Plan+++* (a variable annuity)
401(k) Plans
403(b) Plans
SEP-IRAs
Profit Sharing and Money Purchase Pension Plans
Closed-end Funds#
The Argentina Fund, Inc.
The Brazil Fund, Inc.
The First Iberian Fund, Inc.
The Korea Fund, Inc.
The Latin America Dollar Income Fund, Inc.
Montgomery Street Income Securities, Inc.
Scudder New Asia Fund, Inc.
Scudder New Europe Fund, Inc.
Scudder World Income Opportunities Fund, Inc.
Institutional Cash Management
Scudder Institutional Fund, Inc.
Scudder Fund, Inc.
Scudder Treasurers Trust(tm)++
For complete information on any of the above Scudder funds, including
management fees and expenses, call or write for a free prospectus. Read it
carefully before you invest or send money. +A portion of the income from
the tax-free funds may be subject to federal, state and local taxes. *Not
available in all states. +++A no-load variable annuity contract provided by
Charter National Life Insurance Company and its affiliate, offered by
Scudder's insurance agencies, 1-800-225-2470. #These funds, advised by
Scudder, Stevens & Clark, Inc., are traded on various stock exchanges.
++For information on Scudder Treasurers Trust(tm), an institutional cash
management service that utilizes certain portfolios of Scudder Fund, Inc.
($100,000 minimum), call: 1-800-541-7703.
HOW TO CONTACT SCUDDER
Account Service and Information
For existing account service and transactions
SCUDDER INVESTOR RELATIONS
1-800-225-5163
For account updates, prices, yields, exchanges and redemptions
SCUDDER AUTOMATED INFORMATION LINE (SAIL)
1-800-343-2890
Investment Information
To receive information about the Scudder funds, for additional
applications and prospectuses, or for investment questions
SCUDDER INVESTOR RELATIONS
1-800-225-2470
For establishing 401(k) and 403(b) plans
SCUDDER DEFINED CONTRIBUTION SERVICES
1-800-323-6105
Please address all correspondence to
THE SCUDDER FUNDS
P.O. BOX 2291
BOSTON, MASSACHUSETTS
02107-2291
Or stop by a Scudder Funds Center
Many shareholders enjoy the personal, one-on-one service of the
Scudder Funds Centers. Check for a Funds Center near you--they can be
found in the following cities:
Boca Raton
Boston
Chicago
Cincinnati
Los Angeles
New York
Portland, OR
San Diego
San Francisco
Scottsdale
For information on Scudder Treasurers Trust(tm), an institutional cash
management service for corporations, non-profit organizations and trusts
which utilizes certain portfolios of Scudder Fund, Inc.* ($100,000
minimum), call: 1-800-541-7703.
For information on Scudder Institutional Funds,* funds designed to meet the
broad investment management and service needs of banks and other
institutions, call: 1-800-854-8525.
Scudder Investor Relations and Scudder Funds Centers are services
provided through Scudder Investor Services, Inc., Distributor.
* Contact Scudder Investor Services, Inc., Distributor, to receive a
prospectus with more complete information, including management fees
and expenses. Please read it carefully before you invest or send
money.
Celebrating 75 Years of Serving Investors
Established in 1919 by Theodore Scudder, Sidney Stevens, and F. Haven
Clark, Scudder, Stevens & Clark was the first independent investment
counsel firm in the United States. Since its birth, Scudder's pioneering
spirit and commitment to professional long-term investment management have
helped shape the investment industry. In 1928, we introduced the nation's
first no-load mutual fund. Today we offer 36 pure no load(tm) funds,
including the first international mutual fund offered to U.S. investors.
Over the years, Scudder's global investment perspective and dedication
to research and fundamental investment disciplines have helped Scudder
become one of the largest and most respected investment managers in the
world. Though times have changed since our beginnings, we remain committed
to our longstanding principles: managing money with integrity and
distinction, keeping the interests of our clients first; providing access
to investments and markets that may not be easily available to individuals;
and making investing as simple and convenient as possible through friendly,
comprehensive service.
