Scudder
Gold
Fund
Annual Report
June 30, 1995
o 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.
o A pure no-load(TM) fund with no commissions to buy, sell, or exchange
shares. This information must be preceded or accompanied by a current
prospectus. Portfolio changes should not be considered recommendations for
action by individual investors.
This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
<PAGE>
SCUDDER GOLD FUND
CONTENTS
2 In Brief
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
IN BRIEF
o After a lackluster 1994, the stock prices of gold producers rose during the
first half of 1995, and Scudder Gold Fund provided a total return of 7.50%
for its fiscal year ended June 30, 1995.
(BAR CHART TITLE)
Total Returns for Gold and Gold Funds
(Periods ended June 30, 1995)
(BAR CHART DATA)
-------------------------------------------------------
6 months 12 months
-------------------------------------------------------
Gold Bullion, 1.20% -0.30%
London p.m. fix
------------------------------------------------------
Platinum, free 6.0% 9.54%
market price
-------------------------------------------------------
Toronto Stock 11.32% 11.86%
Exchange Gold Index
-------------------------------------------------------
Johannesburg -28.50% -30.42%
(South Africa)
Stock Exchange
Gold Index
-------------------------------------------------------
Lipper Average 1.75% -0.15%
for Gold-Oriented
Funds
-------------------------------------------------------
Scudder Gold Fund 9.91% 7.50%
-------------------------------------------------------
Past performance does not guarantee future results.
o The price of gold continued to fluctuate in a narrow range, although on a
gradually upward trend.
o During its fiscal year ended June 30, Scudder Gold Fund kept bullion
holdings at a minimum and shifted emphasis to medium- and lower-cost
producers, given the relatively stable path of gold prices.
2
<PAGE>
LETTER FROM THE FUND'S PRESIDENT
Dear Shareholders,
The first six months of 1995 have witnessed impressive performance by both
the U.S. stock and bond markets, while gold has lagged on a relative basis. Some
investors may be asking themselves whether gold is still a worthwhile
investment. Putting aside for a moment the distinctions between gold, gold
stocks, and Scudder Gold Fund, we believe the answer is an emphatic "yes."
Of course, one of gold's historic attractions has always been its rarity.
It is interesting to note that all of the gold ever mined could fit into the
Washington monument. And gold is expensive, requiring the movement of tons of
earth to produce a single ounce. But more important to investors is gold's value
as a portfolio diversifier. Gold often moves independently of other financial
markets, including currencies. Additionally, gold is often viewed as a hedge
against inflation. Over time, gold-based securities have tended to increase in
value during periods of economic and political uncertainty, and as inflationary
concerns have risen.
Paralleling gold's value--and sometimes exceeding its returns--are gold
stocks and the gold mutual funds that own them. Scudder Gold Fund provides a
convenient vehicle to participate in the long-term success of gold mining
companies around the world. The Fund often tracks these firms over a long period
of time. For example, Lead Portfolio Manager Douglas D. Donald has followed
FirstMiss Gold of Nevada, recently one of the Fund's leading performers, for
over 30 years.
At Scudder, we seek to use our expertise to find special "stories,"
companies that are not widely owned and which may promise exciting mineral finds
in the future. As gold's price tracks slowly and steadily upward--as it has
during the past year--we hope you share our excitement in the possibilities of
the long-term explorations and discoveries of gold producers worldwide. If you
have questions about Scudder Gold Fund, please call a Scudder Investor Relations
representative at 1-800-225-2470. Thank you for investing with us.
Sincerely,
/s/Daniel Pierce
Daniel Pierce
President,
Scudder Gold Fund
3
<PAGE>
Scudder Gold Fund
Performance Update as of June 30, 1995
- -----------------------------------------------------------------
Growth of a $10,000 Investment
- -----------------------------------------------------------------
Scudder Gold Fund
- ----------------------------------------
Total Return
Period Growth -------------
Ended of Average
6/30/95 $10,000 Cumulative Annual
- --------- ------- ---------- -------
1 Year $10,750 7.50% 7.50%
5 Year $13,583 35.83% 6.32%
Life of
Fund* $11,650 16.50% 2.26%
S&P 500 Index
- --------------------------------------
Total Return
Period Growth -------------
Ended of Average
6/30/95 $10,000 Cumulative Annual
- --------- ------- ---------- -------
1 Year $12,607 26.07% 26.07%
5 Year $17,693 76.93% 12.08%
Life of
Fund* $24,762 147.62% 14.39%
* 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 June 30
Scudder Gold Fund
Year Amount
- ----------------------
9/30/88 10000
89 9256
90 9005
91 8705
92 8106
93 10699
94 11378
95 12231
S&P 500 Index
Year Amount
- ----------------------
9/30/88 10000
89 12014
90 13995
91 15030
92 17046
93 19369
94 19641
95 24762
The Standard & Poor's (S&P) 500 Index is a 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 June 30
- ----------------------------------
<TABLE>
<S>
<C> <C> <C> <C> <C> <C> <C>
1989* 1990 1991 1992 1993 1994 1995
---------------------------------------------------------
Net Asset Value..... $10.58 $10.21 $ 9.87 $ 9.19 $12.13 $12.64 $12.86
Income Dividends.... $ -- $ .01 -- $ -- $ -- $ .24 $ .25
Capital Gains &
Other Distributions. $ -- $ .09 $ -- $ -- $ -- $ -- $ .47
Fund Total
Return (%).......... -11.83 -2.71 -3.33 -6.89 31.99 6.35 7.50
Index Total
Return (%).......... 20.11 16.45 7.37 13.39 13.61 1.40 26.07
</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 that 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 five year and life of fund periods would have been lower.
4
<PAGE>
Portfolio Summary as of June 30, 1995
- ---------------------------------------------------------------------------
Diversification
- ---------------------------------------------------------------------------
As a percentage of net assets
Equity Securities 93% The Fund is now focusing on moderate-
Precious Metals 5% to lower-cost producers, and keeping
Cash Equivalents, net 2% bullion holdings to a minimum.
----
100%
====
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 26%
Tier II Major established gold
producers 33% Several Tier V companies, such as
Tier III Junior gold producers Bre-X -- a Canadian company exploring
with medium cost in Indonesia -- have rewarded the Fund
production 15% with substantial growth.
Tier IV Companies with some
gold production on
stream or in startup 8%
Tier V Primarily exploration
companies with or
without mineral
reserves 18%
----
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. Stillwater Mining Co.
Exploration and development of mines in Montana producing
platinum, palladium and associated metals
2. Pioneer Group Inc.
Fund management company owning major gold producer in Ghana
3. Hemlo Gold Mines, Inc.
Large gold producer, with single mine in Ontario; active exploration
company
4. Ashanti Goldfields Co., Ltd. (ADS)
World class gold producer in Ghana
5. Placer Dome Inc.
International gold, silver, and copper mining
6. Santa Fe Pacific Gold Corp.
Major domestic gold mining company
7. Newmont Mining Corp.
International gold exploration and mining company
8. Euro Nevada Mining, Ltd.
Large North American royalty owner
9. Cambior, Inc.
Medium-sized gold producer bringing into production a major mine
in Guyana
10. Rayrock Yellowknife Resources, Inc.
Junior diversified mineral producer with operations in Nevada,
Canada and Latin America
Three of our top ten holdings, Stillwater Mining, Pioneer Group, and
Ashanti Goldfields, were significant contributors to the Fund's positive
performance.
For more complete details about the Fund's Investment Portfolio, see page 9.
A monthly Investment Portfolio Summary and quarterly Portfolio Holdings
are available upon request.
5
<PAGE>
PORTFOLIO MANAGEMENT DISCUSSION
SCUDDER GOLD FUND
PORTFOLIO MANAGEMENT DISCUSSION
Dear Shareholders,
The prices of many gold stocks appreciated during Scudder Gold Fund's most
recent fiscal year ended June 30, 1995. After taking a wait-and-see stance
during the last half of 1994, gold bullion and gold stocks began to move up
during the first half of this year. Reflecting this improved environment,
Scudder Gold Fund posted a 7.50% total return for the 12 months ended June 30.
An increase in the Fund's net asset value from $12.64 on June 30, 1994, to
$12.86 on June 30, 1995, plus $0.248 per share in income and $0.465 in capital
gain distributions combined to produce the positive return. Though it failed to
keep pace with broad stock market averages, the Fund performed well relative to
its peers, as shown in the chart below.
Scudder Gold Fund's Average Annual Return
Versus the Averages of Similar Funds*
(Returns for periods ended June 30, 1995)
Period Scudder Gold Fund Lipper Average Number of Funds tracked
------------------------------------------------------------------------------
1 year 7.50% (0.15)% 37
------------------------------------------------------------------------------
2 years 6.92 (0.25) 31
------------------------------------------------------------------------------
3 years 14.70 11.31 30
------------------------------------------------------------------------------
4 years 8.87 6.26 29
------------------------------------------------------------------------------
5 years 6.32 3.92 26
------------------------------------------------------------------------------
Life of Fund 2.26 3.47 25
Performance statistics compiled by Lipper Analytical Services, Inc.
* Past performance is no guarantee of future results.
Demand Steady As Supply Trails
Gold's narrow-ranged price movement during the past 12 months contrasts
with a year ago, when bullion prices were fluctuating widely. As mentioned in
earlier reports, we believe this narrower range reflects investor uncertainty
concerning the direction of gold prices. Gold bullion ranged in price from $375
to $397 per ounce during the year. Though close to $400 an ounce at times, gold
failed to break this psychological barrier. This is because each time the price
of gold approached $400, gold producers began to "sell forward" heavily.
(Selling forward occurs when producers sell on the marketplace gold that will
not be mined for between six months and four years.) Despite this difficulty,
the base price of bullion generally moved higher during the Fund's fiscal year.
Helping nudge prices higher has been a steady if undramatic consumer demand for
gold. In 1994, jewelry demand grew by 1.3%, while total fabrication demand was
about the same as in 1993. We believe that gold will break the $400 barrier in
the near future.
6
<PAGE>
While demand has been steady, world mine production declined marginally in
1994 for the first time in 17 years. Mine production in South Africa (35% of
world production) declined because of productivity problems. We estimate that
South Africa's production will drop an additional 5% to 10% in 1995. Other
factors have trimmed overall gold supply: Bank sales, also known as "net
official sales," dropped precipitously from 488 tons in 1993 to 86 tons in 1994.
Forward sales declined, and old gold scrap, a very important source of supply,
did not come close to compensating for these declines. We expect that 1995's
world production figure will show a further decline.
Steady demand for gold, along with a decrease in supply, should continue to
nudge gold's price upward, as has been the case since 1993. In 1993 and 1994,
the average price for bullion was $360 and $384 an ounce, respectively. For
1995, we expect an average price of $390 an ounce.
Portfolio Review
During the course of the year, we shifted our emphasis from high-cost
gold producers to moderate- and low-cost producers. In an environment of large
price "spikes," high-cost producers often benefit through large percentage gains
in profits. But if the current environment of stable gold prices persists,
moderate- to low-cost producers will benefit from profit margins that are, of
course, wider than those of high-cost producers. We have also continued to
de-emphasize gold bullion, which now makes up approximately 3% of the Fund's
portfolio.
The Fund drew its recent gains primarily from five key positions, three
of which are among the Fund's top ten holdings (see page 5 for more
information): Stillwater Mining, FirstMiss Gold, Ashanti Goldfields, Bre-X, and
Pioneer Group. In particular, Bre-X, a Canadian company exploring in Indonesia,
illustrates the tremendous gains a Tier V (primarily exploration companies with
or without mineral reserves) stock can make in a short time. As of June 30, the
value of our Bre-X position was five times what it was when we purchased this
stock less than a year ago.
7
<PAGE>
Another reason for the Fund's strong performance was our strategy for
dealing with Tier IV and V companies that suffer sharp price declines. When
these declines occur, we review the fundamental health of these companies, and
if they remain fundamentally sound, we increase our position. Over time, we have
found this strategy often reduces the average cost of the position, and
sometimes results in significant gains. Three holdings where we have
successfully pursued this strategy are Southernera, Crown Resources, and
Crystallex.
Additionally, we began to take a positive interest in South African
mines during the first half of this year as prices of the country's gold stocks
declined. The Johannesburg (South Africa) Stock Exchange Gold Index declined 28%
in the first half of 1995. This compares with the Toronto Stock Exchange Gold
Index's gain of almost 12% during the same period. We have added to the Fund's
portfolio two of the largest and richest mining companies in the world--South
Africa's Free State Consolidated Gold Mining and Driefontein Consolidated. South
African gold mining firms are currently pursuing major improvements in
efficiency and cost structure as the country moves further away from apartheid.
We anticipate, for example, that South African mines will eventually move to a
7-day work week to increase productivity while they make improvements in social
conditions for miners. As we monitor the progress of South Africa's mining
companies we stand ready to add to the Fund's position as conditions warrant.
In light of our outlook for steady demand for gold and somewhat
diminished supply, we believe Scudder Gold Fund is well-positioned to benefit
from what we believe will be a slow but steady increase in the price of gold
during the remainder of this year. The Fund remains an appropriate investment
for those seeking 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
Scudder Gold Fund:
A Team Approach to Investing
Scudder Gold Fund is managed by a team of Scudder investment professionals
who each play an important role in the Fund's management process. Team members
work together to develop investment strategies and select securities for the
Fund's portfolio. They are supported by Scudder's large staff of economists,
research analysts, traders, and other investment specialists who work in
Scudder's offices across the United States and abroad. We believe our team
approach benefits Fund investors by bringing together many disciplines and
leveraging Scudder's extensive resources.
Lead Portfolio Manager Douglas D. Donald has been responsible for Scudder
Gold Fund's day-to-day management since its inception in 1988. Doug, who joined
Scudder in 1964, has more than 40 years of experience with investments in
precious metals and mining. William J. Wallace, Portfolio Manager, has been a
member of Scudder Gold Fund's team since 1991 and also serves as a Portfolio
Manager for Scudder Value Fund. Bill, who has 15 years of investment experience,
contributes expertise in quantitative analysis.
8
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO as of June 30, 1995
- -----------------------------------------------------------------------------------------------------
<CAPTION>
% of Principal Market
Portfolio Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------
1.1% REPURCHASE AGREEMENTS
----------------------------------------------------------------------------
1,364,000 Repurchase Agreement with State Street Bank
and Trust Company dated 6/30/95 at 6%,
to be repurchased on 7/3/95 at $1,364,682,
collateralized by a $1,360,000 U.S. Treasury
Note, 6.875%, 10/31/96 (Cost $1,364,000)........... 1,364,000
-----------
----------------------------------------------------------------------------
3.4% CONVERTIBLE BONDS
----------------------------------------------------------------------------
AUSTRALIA 0.7% 800,000 Golden Shamrock Mines Ltd., 7.5%, 5/9/00 (e)........ 864,000
-----------
CANADA 0.6% 500,000 Dayton Mining Corp., 7%, 1/31/99.................... 760,000
-----------
UNITED STATES 2.1% 500,000 Bema Gold Corp., 7.5%, 2/28/00...................... 540,000
2,500,000 Horsham Corp., 3.25%, 12/10/18...................... 2,200,000
-----------
2,740,000
-----------
TOTAL CONVERTIBLE BONDS (Cost $4,210,000) 4,364,000
-----------
----------------------------------------------------------------------------
89.5% COMMON STOCKS
----------------------------------------------------------------------------
Shares
----------------------------------------------------------------------------
AUSTRALIA 10.5% 600,000 Acacia Resources Ltd.* (Gold and mineral
exploration company with operations
throughout Australia).............................. 1,058,171
1,000,000 Climax Mining Ltd.* (Gold exploration
company in Australia and the Philippines
Islands)........................................... 796,473
500,000 Delta Gold NL* (Emerging junior exploration
company with important platinum property
in Zimbabwe)....................................... 931,589
2,500,000 Gold Mines of Kalgoorlie (Major gold producer)...... 2,240,080
400,000 Newcrest Mining, Ltd. (Senior gold
producer and exploration company).................. 1,692,505
550,000 Orion Resources* (Junior exploration company)....... 508,463
1,133,976 Poseidon Gold Ltd. (Growing Tier III
gold producer)..................................... 2,290,209
700,000 Ranger Minerals NL* (Gold producer and
exploration company in Ghana)...................... 1,642,725
1,600,000 Ross Mining NL (Junior exploration company)......... 1,240,222
625,000 Zapopan NL "A"* (Small emerging gold producer)...... 888,920
-----------
13,289,357
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
<TABLE>
SCUDDER GOLD FUND
- -----------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CANADA 49.0% 200,000 Agnico-Eagle Mines, Ltd. (Silver and
gold mining)....................................... 2,675,354
400,000 Arequipa Resources (Exploration company
in Peru)........................................... 416,409
107,399 Barrick Gold Corp. (Gold exploration and
production in North and South America)............. 2,711,825
241,500 Bema Gold Corp.* (Partner in development
of large Chilean gold deposit)..................... 492,265
536,600 Bolivar Goldfields Ltd.* (Gold exploration
company in Venezuela).............................. 703,149
100,000 Bre-X Minerals Ltd.* (Gold exploration
company in Indonesia).............................. 545,991
250,000 Bre-X Minerals Ltd. Warrants*
(expire 5/21/96) (c)............................... 953,664
275,000 Cambior, Inc. (Medium-sized gold producer
with a major mine in Guyana)....................... 3,403,341
670,600 Canarc Resources Corp.* (Exploration and
development company)............................... 1,025,196
415,700 Carson Gold Corp.* (Gold exploration
and development company operating
in Venezuela)...................................... 544,724
312,500 Carson Gold Corp. Warrants*
(expire 12/23/95) (c).............................. 11,375
400,000 Chase Resource Corp. (Acquisition,
exploration and development of resource
mineral properties)................................ 585,302
250,000 Crown Butte Resources Ltd.* (Small exploration
company holding an important gold deposit
in Montana)........................................ 641,539
200,000 Crystallex International Corp.* (Junior
company developing gold property
in Venezuela)...................................... 433,881
267,000 Crystallex International Corp. Units*
(expire 9/29/96) (c) (d)........................... 629,845
300,000 Da Capo Resources Ltd.* (Mineral
exploration and development
company in Bolivia)................................ 622,429
125,000 Da Capo Resources Ltd. Warrants*
(expire 10/31/95) (c).............................. 16,198
250,000 Dayton Mining Corp.* (Junior company
developing Chilean gold deposits).................. 855,385
223,000 Dundee Bancorp Inc.* (Junior mine finance
and holding company)............................... 1,968,387
1,023,800 Ecuadorian Minerals Corp.* (Exploration
company in Ecuador)................................ 931,642
100,000 Ecuadorian Minerals Corp. Warrants*
(expire 3/24/96 ) (c).............................. 21,840
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- -----------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
874,000 El Callao Mining Corp.* (Gold exploration
and development company with interests
in Venezuela)...................................... 604,448
112,700 Euro Nevada Mining Ltd. (Large North
American royalty owner)............................ 3,445,856
267,100 Golden Knight Resources, Inc. (Junior gold
producer, in Quebec)............................... 1,701,398
300,000 Golden Star Resources Ltd.* (Junior company,
with permits in North and South America
and West Africa)................................... 2,156,663
700,000 Granges, Inc.* (Emerging junior gold
producer and exploration company).................. 1,177,156
360,000 Guyanor Resources S.A. "B" (Company
holding interests in mineral properties in
French Guiana)..................................... 812,434
450,000 Hemlo Gold Mines, Inc. (Large gold
producer, with single mine in Ontario;
active exploration company)........................ 4,832,017
300,000 International Gold Resources Corp.*
(Exploration company in Ghana)..................... 1,048,302
375,000 Kinross Gold Corp.* (Gold mining company,
with interests in Zimbabwe)........................ 2,798,202
550,000 Minera Rayrock Inc. "A"* (Company developing
a low cost property in Chile)...................... 660,649
100,000 Minera Rayrock Inc. "B"*............................ 123,758
750,000 Mutual Resources Ltd.* (Holder of gold
prospects in West Africa).......................... 649,729
400,000 Namibian Minerals Corp.* (Diamond
exploration and development company,
offshore Namibia).................................. 647,909
125,000 Namibian Minerals Corp. Warrants*
(expire 12/6/95) (c)............................... 8,645
300,000 Orvana Minerals Corp.* (International
exploration and development company)............... 1,091,981
40,000 Pan African Resources Corp.*
(Gold exploration in West Africa) (c).............. 20,384
400,000 Pangea Goldfields Inc.* (Gold exploration
company operating in Tanzania)..................... 669,748
200,000 Pangea Goldfields Inc. Warrants*
(expire 9/22/95) (c)............................... 2,912
170,000 Placer Dome Inc. (International gold, silver
and copper mining)................................. 4,441,250
150,000 Prime Resources Group, Inc.* (Junior gold
producer in British Columbia)...................... 1,037,382
300,000 Rayrock Yellowknife Resources, Inc.* (Junior
diversified mineral producer with operations
in Nevada, Canada and Latin America)............... 3,275,944
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
<TABLE>
SCUDDER GOLD FUND
- -----------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
300,000 Redfern Resources Ltd.* (Exploration company
in British Columbia)............................... 384,377
672,700 Repadre Capital Corp.* (Junior gold
royalty company)................................... 1,885,411
518,300 Solitario Resources Corp.* (Precious and
base metals exploration company primarily
in Argentina and Peru)............................. 611,252
7,053 Solitario Resources Corp. Warrants*
(expire 3/3/96) (c)................................ 1,848
240,000 Southernera Resources Ltd.* (Diamond
exploration company)............................... 803,698
125,000 Southwestern Gold Corp. (Multiple gold and
gold/copper exploration properties in Peru)........ 978,233
400,000 TVX Gold, Inc.* (International gold
and silver mining)................................. 2,875,551
350,000 Texas Star Resources Corp.* (Diamond
exploration in Arkansas and northern Canada)....... 132,494
225,000 Texas Star Resources Corp. *(c)..................... 163,797
400,000 Triton Mining Corp.* (Exploration and
development of mineral properties in Central
and South America)................................. 1,339,497
270,000 Viceroy Resources Corp.* (Gold producer
in California)..................................... 1,375,896
-----------
61,948,562
-----------
SOUTH AFRICA 3.1% 100,000 Driefontein Consolidated Ltd. (ADR)
(Gold mining and exploration)...................... 1,384,375
100,000 Free State Consolidated Gold Mining Ltd.
(ADR)(Gold mining company)......................... 1,237,500
192,355 Potgietersrust Platinum Holdings, Ltd. (Leading
platinum producer)................................. 1,296,032
-----------
3,917,907
-----------
UNITED STATES 26.9% 200,000 Ashanti Goldfields Co., Ltd. (ADS) (World
class gold producer in Ghana)...................... 4,525,000
324,000 Crown Resources Corp.* (Gold, silver and
mineral exploration company)....................... 1,498,500
200,000 FMC Gold Co. (Medium-sized producer of
gold and silver in Nevada)......................... 800,000
161,200 FirstMiss Gold Inc.* (Gold mining in Nevada)........ 3,224,000
150,000 Homestake Mining Co. (Major international
gold producer)..................................... 2,475,000
100,000 Newmont Mining Corp. (International gold
exploration and mining company).................... 4,187,500
759,000 Piedmont Mining Co.* (Gold and mining
development company in the Carolinas).............. 332,063
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO
- -----------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Portfolio Shares Value ($)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
214,000 Pioneer Group Inc. (Fund management
company owning major gold producer
in Ghana).......................................... 5,751,250
350,001 Santa Fe Pacific Gold Corp. (Major domestic
gold mining company)............................... 4,243,762
250,000 Stillwater Mining Co. (Exploration and
development of mines in Montana producing
platinum, palladium and associated metals) (e)..... 6,953,120
-----------
33,990,195
-----------
TOTAL COMMON STOCKS (Cost $99,924,407).............. 113,146,021
-----------
</TABLE>
<TABLE>
- -----------------------------------------------------------------------------------------------------
<CAPTION>
% of Market
Net Assets Value ($)
---------------------------------
<S> <C> <C>
Investment Portfolio (Cost $105,498,407) (a)... 94.0 118,874,021
SCUDDER PRECIOUS METALS, INC. (NOTE A):
GOLD* (Cost $4,326,959) (b)................... 3.4 4,293,189
PLATINUM* (Cost $1,289,757) (b)............... 1.2 1,517,339
OTHER ASSETS AND LIABILITIES, NET.............. 1.4 1,726,141
----- -----------
NET ASSETS..................................... 100.0 126,410,690
===== ===========
<FN>
* Non-income producing security or commodity.
(a) The cost for federal income tax purposes was $111,641,463. At June 30, 1995, net unrealized
appreciation for all investment securities based on tax cost was $7,232,558. This consisted of
aggregate gross unrealized appreciation for all investments in which there was an excess of
market value over tax cost of $20,508,379 and aggregate gross unrealized depreciation for all
investment securities in which there was an excess of tax cost over market value of $13,275,821.
(b) The cost of Gold for federal income tax purposes was $4,326,959. At June 30, 1995, gross and net
unrealized depreciation was $33,770 based on tax cost. The cost of Platinum for federal income
tax purposes was $1,289,757. At June 30, 1995, gross and net unrealized appreciation was $227,582
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 June 30, 1995, aggregated $943,303. See Note A of the Notes to
Consolidated Financial Statements.
(d) 1 Unit = 1 common share and 1 warrant.
(e) Restricted Securities -- securities which have not been registered with the Securities and
Exchange Commission under the Securities Act of 1933. Information concerning such restricted
securities at June 30, 1995 is as follows:
</FN>
</TABLE>
<TABLE>
<CAPTION>
Principal Amount($)
Security /Shares Acquisition Date Cost ($)
-------- ------------------- ---------------- ---------
<S> <C> <C> <C>
Golden Shamrock Mines Ltd.
7.5%, 5/9/00 $800,000 4/13/95 800,000
Stillwater Mining Co. 170,454 9/12/94 1,000,000
</TABLE>
See page 5 for the breakdown of the Fund's common stocks.
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
<TABLE>
SCUDDER GOLD FUND
CONSOLIDATED FINANCIAL STATEMENTS
- -----------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
- -----------------------------------------------------------------------------------------------------------
JUNE 30, 1995
- -----------------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C>
Investments, at market (identified cost $105,498,407) (Note A).............. $118,874,021
Gold, at market, 11,092.078 oz. (identified cost $4,326,959) (Note A)....... 4,293,189
Platinum, at market, 3,433.672 oz. (identified cost $1,289,757) (Note A).... 1,517,339
Cash........................................................................ 182
Foreign currency, at market (identified cost $50,481) (Note A).............. 50,331
Receivables:
Investments sold......................................................... 5,912,042
Dividends and interest................................................... 106,042
Fund shares sold......................................................... 49,971
Other assets................................................................ 2,649
------------
Total assets........................................................... 130,805,766
LIABILITIES
Payables:
Investments purchased.................................................... $3,859,771
Fund shares redeemed..................................................... 313,286
Accrued management fee (Note C).......................................... 106,446
Other accrued expenses (Note C).......................................... 115,573
----------
Total liabilities...................................................... 4,395,076
------------
Net assets, at market value................................................. $126,410,690
============
NET ASSETS
Net assets consist of:
Accumulated distributions in excess of net investment income............. $ (3,028,694)
Net unrealized appreciation (depreciation) on:
Investment securities.................................................. 13,375,614
Gold................................................................... (33,770)
Platinum............................................................... 227,582
Foreign currency related transactions.................................. 315
Accumulated net realized gains.......................................... 399,296
Capital stock............................................................ 98,266
Additional paid-in capital............................................... 115,372,081
------------
Net assets, at market value $126,410,690
============
NET ASSET VALUE, offering and redemption price per share
($126,410,690 divided by 9,826,603 shares of capital stock outstanding,
$.01 par value, 100,000,000 shares of capital stock authorized).......... $12.86
======
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
<TABLE>
CONSOLIDATED FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF OPERATIONS
- -----------------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30, 1995
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends (net of withholding taxes of $71,228)...................... $ 750,279
Interest............................................................. 477,498
----------
1,227,777
Expenses:
Management fee (Note C).............................................. $1,281,161
Services to shareholders (Note C).................................... 386,675
Custodian and accounting fees (Note C)............................... 171,188
Directors' fees (Note C)............................................. 26,023
Auditing............................................................. 61,965
Reports to shareholders.............................................. 80,891
Legal................................................................ 10,867
State registration................................................... 58,727
Other................................................................ 40,686 2,118,183
--------------------------
Net investment loss.................................................. (890,406)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT TRANSACTIONS
Net realized gain (loss) from:
Investment securities............................................ 3,713,872
Gold............................................................. (426,487)
Foreign currency related transactions............................ (12,260) 3,275,125
Net unrealized appreciation (depreciation) during the period on: ----------
Investment securities 5,203,515
Gold (159,351)
Platinum 143,012
Foreign currency related transactions 251 5,187,427
--------------------------
Net gain on investment transactions 8,462,552
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $7,572,146
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
<TABLE>
SCUDDER GOLD FUND
- ------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------
<CAPTION>
YEARS ENDED JUNE 30,
-------------------------------
INCREASE (DECREASE) IN NET ASSETS 1995 1994
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment loss ........................................ $ (890,406) $ (928,172)
Net realized gain from investment transactions ............. 3,275,125 7,521,103
Net unrealized appreciation (depreciation) on investment
transactions during the period ........................... 5,187,427 (5,250,988)
------------ ------------
Net increase in net assets resulting from operations ....... 7,572,146 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) ............................ (5,245,021) --
------------ ------------
Fund share transactions:
Proceeds from shares sold .................................. 143,035,136 247,469,583
Net asset value of shares issued to shareholders
in reinvestment of distributions ......................... 7,611,778 1,714,331
Cost of shares redeemed .................................... (153,550,282) (208,913,342)
------------ ------------
Net increase (decrease) in net assets from Fund
share transactions ....................................... (2,903,368) 40,270,572
------------ ------------
INCREASE (DECREASE) IN NET ASSETS (3,445,692) 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
$3,028,694 and $1,343,532, respectively) ................. $126,410,690 $129,856,382
============ ============
OTHER INFORMATION
INCREASE (DECREASE) IN FUND SHARES
Shares outstanding at beginning of period .................. 10,277,443 7,427,151
------------ ------------
Shares sold ................................................ 11,733,937 19,073,576
Shares issued to shareholders in reinvestment of
distributions ............................................ 589,031 145,609
Shares redeemed ............................................ (12,773,808) (16,368,893)
------------ ------------
Net increase (decrease) in Fund shares ..................... (450,840) 2,850,292
------------ ------------
Shares outstanding at end of period ........................ 9,826,603 10,277,443
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
<TABLE>
CONSOLIDATED FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------------------------------------------
The following table includes selected data for a share outstanding throughout each period and other performance
information derived from the financial statements.
<CAPTION>
FOR THE PERIOD
SEPTEMBER 2, 1988
(COMMENCEMENT
YEARS ENDED JUNE 30, OF OPERATIONS)
------------------------------------------------------- TO JUNE 30,
1995(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)...................... (.08) (.10) (.08) (.12) (.04) .07 (.06)
Net realized and unrealized
gain (loss) on investment
transactions.................... 1.02 .85 3.02 (.56) (.30) (.34) (1.36)
------ ------ ------ ------ ------ ------ ------
Total from investment
operations........................ .94 .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.... $12.86 $12.64 $12.13 $ 9.19 $ 9.87 $10.21 $10.58
====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (%).................... 7.50 6.35 31.99 (6.89) (3.33) (2.71) (11.83)**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
($ millions)...................... 126 130 90 31 33 17 9
Ratio of operating expenses,
net to average daily net
assets (%) (a).................... 1.65 1.69 2.17 2.54 2.54 2.60 3.00*
Ratio of net investment income
(loss) to average daily net
assets (%)........................ (.69) (.81) (.81) (1.34) (.59) .34 (1.06)*
Portfolio turnover rate (%)......... 42.0 50.8 59.2 57.5 71.4 80.6 34.5*
<FN>
(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.
* Annualized
** Not annualized
</FN>
</TABLE>
17
<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
Directors at
18
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
fair value amounted to $1,830,508 (1.4% of net assets) and have been noted in
the investment portfolio as of June 30, 1995.
RESTRICTED SECURITIES. The Fund may not purchase restricted securities (for
these purposes, restricted security means a security which cannot be sold to the
public without registration under the Securities Act of 1933 or the availability
of an exemption from registration, or which is subject to other legal or
contractual delays in or restrictions on resale), if, as a result thereof, more
than 5% of the value of the Fund's total assets would be invested in restricted
securities. The aggregate fair value of restricted securities at June 30, 1995
amounted to $5,604,752 which represents 4.4% of net assets.
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.
19
<PAGE>
SCUDDER GOLD FUND
- --------------------------------------------------------------------------------
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. A forward foreign currency exchange
contract (forward contract) is a commitment to purchase or sell a foreign
currency at the settlement date at a negotiated rate. During the period, the
Fund utilized forward contracts as a hedge in connection with portfolio
purchases and sales of securities denominated in foreign currencies.
Forward contracts are valued at the prevailing forward exchange rate of the
underlying currencies and unrealized gain/loss is recorded daily. Forward
contracts having the same settlement date and broker are offset and any gain
(loss) is realized on the date of offset; otherwise, gain (loss) is realized on
settlement date. Realized and unrealized gains and losses which represent the
difference between the value of the forward contract to buy and the forward
contract to sell are included in net realized and unrealized gain (loss) from
foreign currency related transactions.
Certain risks may arise upon entering into forward contracts from the potential
inability of counterparties to meet the terms of their contracts. Additionally,
when utilizing forward contracts to hedge, the Fund gives up the opportunity to
profit from favorable exchange rate movements during the term of the contract.
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
20
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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.
B. PURCHASES AND SALES
- --------------------------------------------------------------------------------
For the year ended June 30, 1995, purchases and sales of investment securities
(excluding short-term investments) aggregated $55,800,864 and $50,758,923,
respectively. During the year ended June 30, 1995, purchases and sales of gold
aggregated $16,597,689 and $31,670,376, 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 year ended June 30, 1995, the fee
pursuant to the Agreement amounted to $1,281,161. 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 year ended June 30,
1995. 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.
21
<PAGE>
SCUDDER GOLD FUND
- --------------------------------------------------------------------------------
Scudder Service Corporation ("SSC"), a wholly-owned subsidiary of the Adviser,
is the transfer, dividend paying and shareholder service agent. For the year
ended June 30, 1995, the amount charged to the Fund by SSC aggregated $301,455,
of which $23,220 is unpaid at June 30, 1995.
Effective March 28, 1995, Scudder Fund Accounting Corporation ("SFAC"), a
wholly-owned subsidiary of the Adviser, assumed responsibility for determining
the daily net asset value per share and maintaining the portfolio and general
accounting records of the Fund. For the period ended June 30, 1995, the amount
charged to the Fund by SFAC aggregated $13,007, of which $4,016 is unpaid at
June 30, 1995.
The Fund pays each Director not affiliated with the Adviser $4,000 annually,
plus specified amounts for attended board and committee meetings. For the year
ended June 30, 1995, Directors' fees aggregated $26,023.
22
<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 June
30, 1995, and the related consolidated statement of operations for the year then
ended, the consolidated statements of changes in net assets for each of the two
years in the period then ended, and the consolidated financial highlights for
each of the six years in the period then ended, 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 June 30, 1995, 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 June 30, 1995, the consolidated results of
its operations for the year then ended, the consolidated changes in its net
assets for each of the two years in the period then ended, and the consolidated
financial highlights for each of the six years in the period then ended, 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.
August 15, 1995
23
<PAGE>
SCUDDER GOLD FUND
TAX INFORMATION
- --------------------------------------------------------------------------------
The Fund paid distributions of $.30 per share from long-term capital gains
during its year ended June 30, 1995. Pursuant to section 852 of the Internal
Revenue Code, the Fund designates $2,253,306 as capital gain dividends for its
fiscal year ended June 30, 1995.
Please consult a tax adviser if you have 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 Investors Relations
Representative at 1-800-225-5163.
24
<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.
25
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT PRODUCTS AND SERVICES
The Scudder Family of Funds
-----------------------------------------------------------------------------------------------------------------
<C> <C>
Money Market Income
Scudder Cash Investment Trust Scudder Emerging Markets Income Fund
Scudder U.S. Treasury Money Fund Scudder GNMA Fund
Tax Free Money Market+ Scudder Income Fund
Scudder Tax Free Money Fund Scudder International Bond Fund
Scudder California Tax Free Money Fund* Scudder Short Term Bond Fund
Scudder New York Tax Free Money Fund* Scudder Short Term Global Income Fund
Tax Free+ Scudder Zero Coupon 2000 Fund
Scudder California Tax Free Fund* Growth
Scudder High Yield Tax Free Fund Scudder Capital Growth Fund
Scudder Limited Term Tax Free Fund Scudder Development Fund
Scudder Managed Municipal Bonds Scudder Global Fund
Scudder Massachusetts Limited Term Tax Free Fund* Scudder Global Small Company Fund
Scudder Massachusetts Tax Free Fund* Scudder Gold Fund
Scudder Medium Term Tax Free Fund Scudder Greater Europe Growth Fund
Scudder New York Tax Free Fund* Scudder International Fund
Scudder Ohio Tax Free Fund* Scudder Latin America Fund
Scudder Pennsylvania Tax Free Fund* Scudder Pacific Opportunities Fund
Growth and Income Scudder Quality Growth Fund
Scudder Balanced Fund Scudder Value Fund
Scudder Growth and Income Fund The Japan Fund
Retirement Plans and Tax-Advantaged Investments
-----------------------------------------------------------------------------------------------------------------
IRAs 403(b) Plans
Keogh Plans SEP-IRAs
Scudder Horizon Plan+++* (a variable annuity) Profit Sharing and Money Purchase
401(k) Plans Pension Plans
Closed-End Funds#
-----------------------------------------------------------------------------------------------------------------
The Argentina Fund, Inc. The Latin America Dollar Income Fund, Inc.
The Brazil Fund, Inc. Montgomery Street Income Securities, Inc.
The First Iberian Fund, Inc. Scudder New Asia Fund, Inc.
The Korea 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.
26
<PAGE>
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 New York
Boston Portland, OR
Chicago San Diego
Cincinnati San Francisco
Los Angeles Scottsdale
-------------------------------------------------------------------------------------------------------------
For information on Scudder For information on Scudder
Treasurers Trust,(TM) an institutional Institutional Funds,* funds
cash management service for designed to meet the broad
corporations, non-profit investment management and
organizations and trusts that uses service needs of banks and
certain portfolios of Scudder Fund, other institutions, call
Inc.* ($100,000 minimum), call 1-800-854-8525.
1-800-541-7703.
-------------------------------------------------------------------------------------------------------------
Scudder Investor Relations and Scudder Funds Centers are services provided
through Scudder Investor Services, Inc., Distributor.
<FN>
* 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.
</FN>
</TABLE>
27
<PAGE>
Celebrating Over 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 us 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 long-standing
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.
