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<PAGE> PAGE 2
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<PAGE> PAGE 3
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SIGNATURE THOMAS F. MCDONOUGH
TITLE SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the Scudder
Gold Fund Semiannual Report for the period ended December 31, 1996 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> SCUDDER GOLD FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 161,707,147
<INVESTMENTS-AT-VALUE> 183,232,116
<RECEIVABLES> 2,489,851
<ASSETS-OTHER> 5,020
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 185,726,987
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,550,780
<TOTAL-LIABILITIES> 1,550,780
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 183,540,738
<SHARES-COMMON-STOCK> 14,526,391
<SHARES-COMMON-PRIOR> 11,273,441
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (29,038,002)
<ACCUMULATED-NET-GAINS> 8,148,502
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 21,524,969
<NET-ASSETS> 184,176,207
<DIVIDEND-INCOME> 404,311
<INTEREST-INCOME> 261,714
<OTHER-INCOME> 0
<EXPENSES-NET> 1,569,103
<NET-INVESTMENT-INCOME> (903,078)
<REALIZED-GAINS-CURRENT> 9,950,527
<APPREC-INCREASE-CURRENT> (13,097,762)
<NET-CHANGE-FROM-OPS> (4,050,313)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (32,213,271)
<DISTRIBUTIONS-OF-GAINS> (3,509,513)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 12,654,574
<NUMBER-OF-SHARES-REDEEMED> (11,803,327)
<SHARES-REINVESTED> 2,401,703
<NET-CHANGE-IN-ASSETS> 11,295,763
<ACCUMULATED-NII-PRIOR> 4,078,347
<ACCUMULATED-GAINS-PRIOR> 1,707,488
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 992,768
<INTEREST-EXPENSE> 8599
<GROSS-EXPENSE> 1,569,103
<AVERAGE-NET-ASSETS> 198,195,367
<PER-SHARE-NAV-BEGIN> 15.34
<PER-SHARE-NII> (.07)
<PER-SHARE-GAIN-APPREC> .06
<PER-SHARE-DIVIDEND> (2.39)
<PER-SHARE-DISTRIBUTIONS> (.26)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.68
<EXPENSE-RATIO> 1.57
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Scudder
Gold Fund
Semiannual Report
December 31, 1996
Pure No-Load(TM) Funds
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.
<PAGE>
Table of Contents
2 In Brief
3 Letter from the Fund's President
4 Performance Update
5 Portfolio Summary
6 Portfolio Management Discussion
9 Investment Portfolio
15 Financial Statements
18 Financial Highlights
19 Notes to Financial Statements
22 Report of Independent Accountants
23 Shareholder Meeting Results
26 Investment Products and Services
27 How to Contact Scudder
In Brief
o Scudder Gold Fund's average annual total returns placed it in the top 15% of
similar gold-oriented funds for one-, three-, and five-year periods ended
December 31, 1996, as tracked by Lipper Analytical Services, Inc.
o In a difficult environment for gold bullion and gold stocks, Scudder Gold Fund
posted a -0.64% total return for the six-month period ended December 31, 1996,
outpacing the -6.63% average total return of similar funds. The Fund's one-year
total return was 32.11%, compared with the Lipper average of 7.56%.
THE ORIGINAL D0CUMENT CONTAINS A BAR CHART HERE.
BAR CHART TITLE: Total Returns for Gold and Gold Funds
Periods ended December 31, 1996
CHART DATA:
Six Twelve
Months Months
Gold bullion, London p.m. fix -3.34% -4.59%
Platinum, free market price -6.23 -9.38
Toronto Stock Exchange Gold Index 2.22 8.54
Johannesburg (South Africa) Stock Exchange Gold Index -12.52 12.11
Lipper Average for Gold-Oriented Funds -6.63 7.56
Scudder Gold Fund -0.64 32.11
2-SCUDDER GOLD FUND
<PAGE>
Letter From the Fund's President
Dear Shareholders,
We hope you enjoy our newly redesigned shareholder report. The new format,
which is being gradually introduced for all Scudder funds, is designed to
enhance the attractiveness and readability of the reports. Let us know what you
think.
I'd like to take this opportunity to introduce you to the new Lead
Portfolio Manager of Scudder Gold Fund, Clay Hoes. Clay joins the Fund's
management team with 17 years of experience in development geology, precious
metals project finance, metals and mining analysis, and portfolio management.
Doug Donald, who joined Scudder in 1964 and has been responsible for Scudder
Gold Fund's day-to-day management since its inception in 1988, has retired. We
thank him for his many outstanding years of service, and wish him the best.
As part of Scudder's ongoing efforts to meet the needs of investors, we
recently launched an innovative new product called Scudder Pathway Series. A
"fund of funds," Pathway Series is a collection of four distinct portfolios --
Conservative, Growth, Balanced, and International -- that offers flexibility,
diversification, and simplicity. Each portfolio invests in a diverse mix of
Scudder funds, and each is geared toward people with different investment goals
and risk tolerances -- a team of Scudder's investment professionals makes
allocation decisions accordingly.
We'd like to remind you that new legislation passed last summer
significantly raised IRA contribution limits for many married couples. Beginning
with the 1997 tax year, married couples with one income may contribute up to
$4,000 jointly per year -- an increase of $1,750 from the previous limit. This
change may enhance your ability to use an IRA to defer taxes and let your
retirement assets grow over time. For more information on Scudder products and
services, please turn to page 26. If you have questions about Scudder Gold Fund,
please contact a Scudder Investor Information representative at 1-800-225-2470,
or visit Scudder's Web site at funds.scudder.com.
Sincerely,
/s/Daniel Pierce
Daniel Pierce
President,
Scudder Gold Fund
3-SCUDDER GOLD FUND
<PAGE>
PERFORMANCE UPDATE as of December 31, 1996
- ----------------------------------------------------------------
FUND INDEX COMPARISONS
- ----------------------------------------------------------------
Total Return
Period Growth --------------
Ended of Average
12/31/96 $10,000 Cumulative Annual
- --------------------------------------
SCUDDER GOLD FUND
- --------------------------------------
1 Year $13,211 32.11% 32.11%
5 Year $20,070 100.70% 14.95%
Life of
Fund* $15,849 58.49% 5.68%
- --------------------------------------
S&P 500 INDEX
- --------------------------------------
1 Year $12,296 22.96% 22.96%
5 Year $20,305 103.05% 15.20%
Life of
Fund* $34,846 248.46% 16.33%
*The Fund commenced operations on September 2, 1988.
Index comparisons begin September 30, 1988.
- -----------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- -----------------------------------------------------------------
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
- ----------------------
9/88 $10,000
'88 $ 9,659
'89 $10,690
'90 $ 8,908
'91 $ 8,291
'92 $ 7,541
'93 $12,026
'94 $11,129
'95 $12,595
'96 $16,640
S&P 500 INDEX
Year Amount
- ----------------------
9/88 $10,000
'88 $10,309
'89 $13,575
'90 $13,154
'91 $17,161
'92 $18,469
'93 $20,330
'94 $20,599
'95 $28,339
'96 $34,846
The Standard & Poor's 500 Index is an unmanaged capitalization-weighted
measure of 500 widley 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> <C> <C>
1988* 1989 1990 1991 1992 1993 1994 1995 1996
----------------------------------------------------------------------
NET ASSET VALUE... $11.04 $12.12 $10.10 $ 9.40 $ 8.55 $13.36 $11.71 $11.53 $12.68
INCOME
DISTRIBUTIONS.. $ - $ .01 $ - $ - $ - $ .24 $ .25 $ 1.08 $ 2.39
CAPITAL GAINS
DISTRIBUTIONS..... $ - $ .09 $ - $ - $ - $ - $ .47 $ .63 $ .26
FUND TOTAL
RETURN (%)........ -8.00 10.67 -16.67 -6.93 -9.04 59.47 -7.46 13.17 32.11
INDEX TOTAL
RETURN (%)........ 3.08 31.63 -3.11 30.40 7.61 10.06 1.32 37.58 22.96
</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
Advisor had not temporarily capped expenses, the average annual total return
for the five year and life of Fund periods would have been lower.
4-SCUDDER GOLD FUND
<PAGE>
PORTFOLIO SUMMARY as of December 31, 1996
- ---------------------------------------------------------------------------
DIVERSIFICATION
- ---------------------------------------------------------------------------
Equity Holdings 90%
Precious Metals 9%
Cash Equivalents, net 1%
- --------------------------------------
100%
- --------------------------------------
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
Our comparatively high level of liquidity during the period
helped the Fund outperform gold-oriented investments that
had greater stock market exposure.
- --------------------------------------------------------------------------
QUALITY DISTRIBUTION
- --------------------------------------------------------------------------
Tier breakdown of the Fund's common stocks
Tier I
Premier gold producing companies 24%
Tier II
Major established gold producers 27%
Tier III
Junior gold producers with
medium cost production 12%
Tier IV
Companies with some gold production
on stream or in startup 8%
Tier V
Primarily exploration companies
with or without mineral reserves 29%
- ------------------------------------------
100%
- ------------------------------------------
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
Our longer-term strategy of focusing on lower-cost gold
producers of all five quality tires also aided Fund performance.
- --------------------------------------------------------------------------
10 LARGEST EQUITY HOLDINGS
(34% OF PORTFOLIO)
- --------------------------------------------------------------------------
1. SANTA FE PACIFIC GOLD CORP.
Major domestic gold mining company
2. ASHANTI GOLDFIELDS CO., LTD
Leading gold producer in Ghana
3. EURO-NEVADA MINING, LTD.
Explorer and miner for North American gold
4. HOMESTAKE MINING CO.
Major international gold producer
5. PLACER DOME INC.
International gold, silver & copper mining
6. STILLWATER MINING CO.
Explorer for platinum, palladium and other metals
7. CORRIENTE RESOURCES, INC.
Mining company
8. MORMANDY MINING LTD.
Mining and oil enterprises in Australia
9. BATTLE MOUNTAIN CANADA
Gold and silver mining
10. NEWMONT MINING CORP.
International gold exploration and mining company
Corriente Resources, a Tier V stock and the Fund's seventh-largest
holding, has posted strong returns since its intitial purchase in October 1995.
- -----------------------------------------------------------------------------
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-SCUDDER GOLD FUND
<PAGE>
Portfolio Management Discussion
Dear Shareholders,
During a six-month period in which both the performance of gold and gold stocks
proved disappointing, Scudder Gold Fund posted a total return of -0.64%,
outpacing the -6.63% average performance of similar funds as tracked by Lipper.
Significantly higher was the Fund's one-year total return of 32.11%, which
compares very favorably with the Lipper average of 7.56%. During the period, a
decline in the Fund's net asset value from $15.34 to $12.68 was nearly offset by
income distributions of $2.39, a short-term capital gain of $0.03 per share, and
a long-term capital gain of $0.23 per share.
Over the longer-term, Scudder Gold Fund posted average annual total returns in
the top 15% of similar gold-oriented funds over one-, three-, and five-year
periods as shown in the chart below.
- ---------------------------------------------------------
Investment Returns for periods ended
December 31, 1996
- ---------------------------------------------------------
Number
Period Scudder Lipper Percentile of Funds
Gold Fund Average Rank Tracked
- ---------------------------------------------------------
6 months -0.64% -6.63% Top 7% 45
1 year 32.11% 7.56% Top 15% 41
3 years* 11.43% -1.84% Top 7% 29
5 years* 14.95% 7.79% Top 15% 26
* Average annual total returns
Performance statistics compiled by Lipper Analytical Services, Inc.
Past performance does not guarantee future results.
A Difficult Environment
Gold bullion, which had ridden significant upward price spikes in early 1996,
approached the $390 mark in August following a senior gold producer's decision
to buy back a large forward sale. (In "sell-ing forward," gold producers sell on
the open market gold that will not be mined for between six months and four
years, similar to "selling short" in the stock market; as with short sales, a
forward sale can be canceled through a "buyback" transaction. Gold producers use
the forward markets to lock in profits for mining projects.) Gold then retreated
to a low of $366 per ounce on December 3. We perceive three main factors in
gold's recent retreat. The first was the increased momentum toward a unified
European currency. In order to join the European Monetary Union, countries will
need to post an agreed-upon debt-to-gross domestic product ratio. To help meet a
1999 deadline to improve their balance sheets, we believe that from time to
time, several European nations have sold significant amounts of gold bullion
into the market. Such sales have had a dampening effect on gold's price. The
other factors holding gold back were a combination of short sales by large
institutional investors and the lack of speculative demand for gold, caused by
low gold price volatility since the peak in August.
Other influences on the price of gold were less prominent than usual during the
most recent six-month period: First, jewelry fabrication demand, which hit
near-record levels in 1995, was off slightly in 1996. Second, forward sales were
evenly matched with buybacks of these hedges by major gold producers and did not
exert their usual dampening effect on gold's price. Third, the supply of gold
6-SCUDDER GOLD FUND
<PAGE>
was not a factor in 1996, as world gold supply remained flat compared with the
previous year.
A Continuation of
Our Strategy
For the six months ended December 31, gold stock prices generally retreated.
Tier V companies -- primarily exploration companies with or without mineral
reserves -- were especially hard hit by price declines. (See page 5 for the
Fund's quality distribution and definitions of Tiers I through V.) Our
short-term strategy during this period was to sharply increase the amount of
gold bullion in the Fund's portfolio. At the end of 1995, the Fund held 21,975
ounces of gold bullion; we closed 1996 with 45,701 ounces (9.2% of the Fund's
net assets). Our comparatively high level of liquidity helped the Fund
outperform gold-oriented investments that had greater stock market exposure
during the period.
Our longer-term strategy of focusing on lower-cost gold producers of all five
quality tiers also aided Fund performance during the period, as high-cost
producers are generally hardest hit during downturns. The Fund continues to
benefit from holding Tier V companies that have made significant mineral
discoveries. Recent top performers include Corriente of Bolivia (total return
based on stock price since purchase in October 1995, +451%) and Guyanor of
French Guyana (+348% since February 1995). An example of a successful
longer-term Tier V holding is Bre-X, originally purchased at $0.17 per share and
valued at $15.84 per share on December 31.
Several regions of the world where intensive gold exploration is occurring
continue to hold our interest:
We are monitoring mineral developments in Russia and the Commonwealth of
Independent States (CIS) closely. These include Kazakhstan, one of the richest
CIS republics in terms of natural resources. There, a number of projects funded
by outside investors should be proceeding from the funding to the production
stage within 18 months. When profits from foreign gold exploration companies
actually begin to be repatriated out of Russia and the CIS, it will be a strong
positive signal for investors.
We have reported to you in the past on Venezuela's progress. The good news is
that Placer Dome -- satisfied with the government's progress on its mining code
- -- has made a formal commitment to develop its Las Cristinas property. While
smaller developers will now follow Placer's lead in spending and development,
impatient investors are taking a "wait and see" stance toward Venezuelan gold
stocks.
Lastly, we are encouraged by progress in African countries such as Ghana, Mali,
Tanzania, and Niger, though it takes longer to move from discovery to
development to pouring gold in many of these countries.
7-SCUDDER GOLD FUND
<PAGE>
Additional Divergence
Between Gold and Gold
Stocks?
We repeat our maxim of six months ago -- that the markets for gold and gold
stocks do not necessarily move in tandem -- because it is meaningful when
looking to the future of both asset classes. We cannot, of course, predict the
future performance of either, but we do see the potential for diverging
performance. Because there will probably be additional gold sales by European
nations, we are less optimistic than in the recent past that the price of gold
will move up substantially in the near future. But we continue to be excited by
the prospects of Tier V companies that are making discoveries around the world
and concluding deals with larger, better-capitalized firms to mine their
discoveries. Though gold stocks (because gold has traditionally been viewed as a
"safe haven") could derive some benefit from downturns in other securities
markets, we believe that the key to Scudder Gold Fund's success will continue to
be careful stock selection. We will employ our expertise to attempt to pick
companies for Scudder Gold Fund's portfolio that display good management and
exploration prowess in favorable locations of the world. We believe the Fund
remains an appropriate investment for those seeking portfolio diversification, a
hedge against inflation, and participation in the world's gold and precious
metals markets.
Sincerely,
Your Portfolio Management Team
/s/Clay L. Hoes /s/William J. Wallace
Clay L. Hoes William J. Wallace
8-SCUDDER GOLD FUND
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT PORTFOLIO AS OF DECEMBER 31, 1996
PRINCIPAL MARKET
AMOUNT ($) VALUE ($)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENTS 0.4%
- -----------------------------------------------------------------------------------------------------------------------------
Repurchase Agreement with Donaldson, Lufkin & Jenrette dated 12/31/96 at 6.7%, to be
repurchased at $741,276 on 1/2/97, collateralized by a $725,000 U.S. Treasury ------------
Note, 8.125%, 2/15/98 (Cost $741,000)......................................................... 741,000 741,000
------------
CONVERTIBLE BONDS 1.4%
- -----------------------------------------------------------------------------------------------------------------------------
CHILE 0.8%
Bema Gold Corp., 7.5%, 2/28/00.................................................................. 500,000 1,435,000
CANADA 0.6% ------------
Kinross Gold, 5.5%, 12/05/06.................................................................... CAD 1,500,000 1,084,219
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS (COST $1,601,119) 2,519,219
- -----------------------------------------------------------------------------------------------------------------------------
Shares
- -----------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS 88.0%
- -----------------------------------------------------------------------------------------------------------------------------
AUSTRALIA 9.1%
Acacia Resources, Ltd.* (Gold and mineral exploration company with operations
throughout Australia)......................................................................... 800,000 1,557,906
Delta Gold NL* (Gold and mineral exploration company with important platinum property in
Zimbabwe)..................................................................................... 1,000,000 1,875,846
Great Central Mines, Ltd.* (Junior gold producer and exploration company)....................... 1,000,000 2,845,563
Newcrest Mining, Ltd. (Senior gold producer and global exploration company)..................... 926,461 3,681,988
Normandy Mining "New" (Newly merged Senior gold producer of Posgold Ltd. Gold Mines of
Kalgoorlie Ltd. and Normandy Ltd. with interests in Argentina)................................ 3,555,342 4,917,177
Ross Mining NL (Exploration company)............................................................ 1,627,826 1,591,470
Ross Mining "New"* (k).......................................................................... 228,571 219,832
------------
16,689,782
------------
BOLIVIA 2.7%
Corriente Resources, Inc.* (Exploration and development company)................................ 369,900 4,375,117
Corriente Resources, Inc., Purchase Warrants* (expire 3/8/97) (c) (j)........................... 100,000 595,773
------------
4,970,890
------------
BRAZIL 1.1%
Ourominas Minerals Inc.* (Exploration company operating solely in Brazil)....................... 700,000 1,839,886
Ourominas Minerals Inc., Purchase Warrants* (expire 8/14/97) (c) (j)............................ 250,000 239,112
------------
2,078,998
------------
CANADA 9.1%
Agnico-Eagle Mines, Ltd.* (Silver and gold mining).............................................. 185,000 2,600,117
Euro-Nevada Mining, Ltd.* (Large North American gold royalty company)........................... 200,000 5,972,329
Kinross Gold Corp.* (Gold mining company, with interest in Zimbabwe)............................ 300,000 2,124,630
Golden Knight Resources, Inc.* (Junior gold producer, with interest in Ghana)................... 586,787 2,827,579
The accompanying notes are an integral part of the financial statements.
</TABLE>
9-SCUDDER GOLD FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE ($)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Redfern Resources Ltd.* (Exploration company in British Columbia)............................... 300,000 383,310
Repadre Capital Corp.* (Junior gold royalty company)............................................ 502,700 2,936,224
------------
16,844,189
------------
CHILE 1.9%
Bema Gold Corp.* (Partner in development of large Chilean gold deposit)......................... 141,500 836,820
Dayton Mining Corp.* (Junior company developing Chilean gold deposits).......................... 300,500 1,996,532
Minera Rayrock Inc. "A"* (Company developing a low cost property in Chile)...................... 550,000 168,656
Minera Rayrock Inc. "B"*........................................................................ 100,000 34,315
South American Gold and Copper, Special Warrants* (expire 4/29/98) (Gold and copper
exploration company in Chile and Peru) (c) (f)................................................ 400,000 546,125
------------
3,582,448
------------
CHINA 0.2%
Zen Resources Ltd. Units* (expire 11/30/98) (Exploration company in China) (c) (e).............. 110,000 428,869
ECUADOR 0.2% ------------
Ecuadorian Minerals Corp.* (Exploration company in Ecuador)..................................... 723,800 528,456
FRENCH GUIANA 1.3% ------------
Guyanor Resources S.A. "B" *(Company holding interests in mineral properties in French Guiana).. 250,000 1,688,387
International Roraima Gold , Special Warrants* (expire 10/22/97) (c) (g)........................ 750,000 662,578
------------
2,350,965
------------
GHANA 7.8%
Ashanti Goldfields Co., Ltd. (GDR) (Leading gold producer)...................................... 576,980 7,140,127
Ashanti Goldfields (Preference shares)* (c)..................................................... 154,702 411,507
Pioneer Group Inc. (Fund management company owning major gold producer in Ghana)................ 175,000 4,156,250
Ranger Minerals NL* (Gold producer and exploration company in Ghana)............................ 850,000 2,601,147
------------
14,309,031
------------
INDONESIA 2.3%
Bre-X Minerals Ltd.* (Gold exploration company in Indonesia).................................... 100,000 1,584,346
Bro-X Minerals Ltd.* (Gold exploration company in Indonesia).................................... 8,500 14,894
Golden Bear Minerals, Inc. Units* (expire 3/22/97) (Gold exploration company) (c) (d)........... 500,000 456,321
Golden Bear Minerals, Inc., Special Warrants* (expire 2/1/98) (c) (h)........................... 300,000 260,651
Scorpion Minerals, Inc.* (Holder of interests in gold, copper and base metal mining properties
in Indonesia)................................................................................. 200,000 817,727
South Pacific Resources* (Gold exploration company operating in Indonesia)...................... 525,000 1,207,425
------------
4,341,364
------------
KAZAKHSTAN 0.9%
Steppe Gold Resources Ltd.* (Exploration company in Kazakhstan)................................. 910,000 644,471
Steppe Gold Resources Ltd., Purchase Warrants "A"* (expire 6/10/98) (c) (i)..................... 140,000 17,377
The accompanying notes are an integral part of the financial statements.
</TABLE>
10-SCUDDER GOLD FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE ($)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Steppe Gold Resources Ltd., Purchase Warrants "B"* (expire 6/10/98) (c) (j)..................... 385,000 19,677
Kazakhstan Minerals Corp.* (Joint venturing in Kazakhstan)...................................... 150,000 1,035,000
------------
1,716,525
------------
MEXICO 0.0%
Northern Crown Mines, Special Warrants* (expire 12/31/97) (Junior gold and silver exploration
company in Mexico) (c) (g).................................................................... 100,000 81,773
NAMIBIA 0.7% ------------
Namibian Minerals Corp.* (Diamond exploration and development company, offshore Namibia)........ 300,000 1,204,687
NICARAGUA 0.9% ------------
Triton Mining Corp.* (Exploration and development of mineral properties in Central and
South America)................................................................................ 462,500 1,477,339
NIGER 0.9% ------------
Etruscan Enterprise Company* (Junior exploration company)....................................... 400,000 1,460,227
Etruscan Enterprise Company, Purchase Warrants* (expire 9/30/97) (c) (i)........................ 400,000 268,682
------------
1,728,909
------------
PERU 1.0%
Southwestern Gold Corp.* (Multiple gold and gold/copper exploration properties in Peru)......... 150,000 1,834,410
PHILIPPINES 1.2% ------------
Chase Resource Corp.* (Acquisition, exploration and development of resource mineral properties). 400,000 706,750
Climax Mining Ltd.* (Gold exploration company in Australia and the Philippines Islands)......... 1,000,000 922,026
TVI Pacific, Inc. *(Gold exploration and mining in the Philippines)............................. 620,000 574,891
------------
2,203,667
------------
SARAWAK 0.6%
Menzies Gold NL* (Junior exploration company in Sarawak)........................................ 2,500,000 1,132,662
SOUTH AFRICA 2.7% ------------
Potgietersrust Platinum Holdings, Ltd.* (Leading platinum producer)............................. 501,000 2,462,969
Vaal Reefs Exploration & Mining Co., Ltd. (ADR) (Mining and exploration for gold, uranium
oxide and sulfuric acid in South Africa)...................................................... 400,000 2,475,000
------------
4,937,969
------------
SPAIN 1.0%
Rio Narcea, Special Warrants* (expire 11/24/97) (Junior exploration company in Northern
Spain) (c) (f)................................................................................ 700,000 1,829,920
TANZANIA 1.0% ------------
Pangea Goldfields Inc.* (Junior exploration company operating in Tanzania)...................... 400,000 1,869,091
UNITED STATES 13.9% ------------
Crown Butte Resources Ltd.* (Small exploration company holding an important gold deposit
in Montana)................................................................................... 250,000 410,689
The accompanying notes are an integral part of the financial statements.
</TABLE>
11-SCUDDER GOLD FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE ($)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Emperor Gold Corp. Units* (expire 11/14/97) (Junior mining company in California) (c) (e)....... 200,000 385,500
Emperor Gold Corp.*............................................................................. 38,200 83,671
Getchell Gold Corp.* (Expanding gold mining project in Nevada).................................. 100,000 3,837,500
Piedmont Mining Co.* (Gold and mining development company in the Carolinas)..................... 1,024,000 384,000
Piedmont Mining Co. (Restricted)(l)............................................................. 700,000 262,500
Santa Fe Pacific Gold Corp. (Major domestic gold mining company)................................ 500,001 7,687,515
Star Resources Corp.* (Diamond exploration company in Arkansas and Russia)...................... 1,000,000 240,937
Stillwater Mining Co.* (Exploration and development of mines in Montana producing platinum,
palladium and associated metals).............................................................. 134,546 2,438,646
Stillwater Mining Co.*.......................................................................... 165,454 2,998,854
Viceroy Resources Corp.* (Gold producer in California).......................................... 550,000 2,449,531
Vista Gold Corp.* (Merged junior exploration and development company of DaCapo Resources
Ltd. and Granges Inc.)........................................................................ 2,800,000 3,781,988
Vista Gold Corp., Purchase Warrants* (expire 10/31/97)(c)(j).................................... 200,000 26,284
X-Cal Resources Units* (expire 9/30/97) (Junior exploration company in Nevada) (c) (e).......... 1,000,000 558,537
------------
25,546,152
------------
VENEZUELA 3.1%
Bolivar Goldfields Ltd.* (Gold exploration company in Venezuela)................................ 1,147,600 921,666
Bolivar Goldfields Ltd., Purchase Warrants* (expire 9/25/97) (c) (i)............................ 150,000 17,523
Crystallex International Corp.* (Junior company developing gold property in Venezuela).......... 774,000 1,412,770
Crystallex International Corp. Units* (expire 3/11/98) (c) (e).................................. 200,000 374,548
El Callao Mining Corp.* (Gold exploration and development company with interests
in Venezuela)................................................................................. 1,124,000 1,075,049
Jordex Resources, Inc.* (Operator of two mines producing zinc, lead and silver)................. 700,000 935,276
Tombstone Exploration Co., Ltd.* (Junior exploration company in Venezuela and Honduras)......... 600,000 941,846
Tombstone Exploration Co., Ltd., Purchase Warrants* (expire 5/17/98) (c) (j).................... 300,000 85,423
------------
5,764,101
------------
WEST AFRICA 2.4%
Birim Goldfields* (Junior exploration company in Ghana)......................................... 200,000 219,034
Birim Goldfields, Special Warrants* (expire 5/5/98) (c) (g)..................................... 150,000 152,229
Nevsun Resources Ltd.* (Holder of interests in gold prospects) (Junior exploration company in
Ghana and Mali)............................................................................... 225,000 1,281,349
Nevsun Resources Ltd., Special Warrants* (expire 1/24/98) (c) (f)............................... 70,000 338,846
Oliver Gold Corp.* (Exploration and development company with interests in gold and
gold-copper prospects in British Columbia).................................................... 200,000 607,454
Pan African Resources Corp.* (Gold exploration in West Africa).................................. 300,040 153,344
The accompanying notes are an integral part of the financial statements.
</TABLE>
12-SCUDDER GOLD FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE ($)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Panorama Res, Special Warrants* (expire 11/26/97) (Junior exploration company in Congo
and Kenya) (c) (f)............................................................................ 1,250,000 358,875
Samax Gold Inc.* (Gold exploration in Ghana and Tanzania)....................................... 325,000 1,245,756
------------
4,356,887
------------
INTERNATIONAL 22.0%
Barrick Gold Corp.* (GOLD exploration and development in North and South America)............... 57,399 1,650,221
Battle Mountain Canada* (Exploration and production development company in North and
South America, Australia and Indonesia)....................................................... 663,780 4,604,030
Cambior, Inc.* (Medium-sized gold producer with a major mine in Guyana)......................... 275,000 4,055,781
Canarc Resources Corp.* (Exploration and development company in Canada, South American
and Indonesia)................................................................................ 775,600 1,121,227
Crown Resources Corp.* (Gold, silver and mineral exploration company)........................... 304,000 1,881,000
Golden Star Resources Ltd.* (Junior company, with permits in North and South America and
West Africa).................................................................................. 125,000 1,647,319
Homestake Mining Co. (Major international gold producer)........................................ 400,000 5,700,000
Meridian Gold Inc.* (Exploration and development company)....................................... 127,600 526,350
Meridian Gold Inc.*............................................................................. 398,000 944,402
Newmont Mining Corp. (International gold exploration and mining company)........................ 100,000 4,475,000
Orvana Minerals Corp.* (International exploration and development company)...................... 390,000 2,064,396
Placer Dome Inc. (Canada) (International gold, silver and copper mining)........................ 50,000 1,096,996
Placer Dome Inc.*............................................................................... 210,000 4,567,500
Rayrock Yellowknife Resources, Inc.* (Junior diversified mineral producer with operations in
Nevada, Canada and Latin America)............................................................. 300,000 1,478,480
Solitario Resources Corp.* (Precious and base metals exploration company primarily in Argentina
and Peru)..................................................................................... 725,353 1,435,189
TVX Gold, Inc.* (International gold and silver mining).......................................... 400,000 3,124,886
------------
40,372,777
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $140,730,397) 162,181,861
- -----------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
</TABLE>
13-SCUDDER GOLD FUND
<PAGE>
<TABLE>
<CAPTION>
% 0F MARKET
NET ASSETS VALUE ($)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Total Investment Portfolio (Cost $143,072,516)(a)............................................... 89.8 165,442,080
Scudder Precious Metals, Inc. (Note A):
Gold* (Cost $17,734,874)(b)................................................................... 9.2 16,888,969
Platinum* (Cost $899,757)(b).................................................................. 0.5 901,067
Other Assets and Liabilities, Net............................................................... 0.5 944,091
------- ------------
Net Assets...................................................................................... 100.0 184,176,207
======= ============
* Non-income producing security or commodity.
(a) The cost for federal income tax purposes was $157,856,244. At December 31, 1996, net unrealized
appreciation for all investment securities based on tax cost was $7,585,836. This consisted of
aggregate gross unrealized appreciation for all investments in which there was an excess of market
value over tax cost of $32,131,433 and aggregate gross unrealized depreciation for all investment
securities in which there was an excess of tax cost over market value of $24,545,597.
(b) The cost of Gold for federal income tax purposes was $17,734,874. At December 31, 1996, gross and
net unrealized depreciation based on tax cost was $845,905. The cost of Platinum for federal income
tax purposes was $899,757. At December 31, 1996, gross and net unrealized appreciation based on tax
cost was $1,310.
(c) Securities valued in good faith by the Valuation Committee of the Board of Directors at fair value
amounted to $8,116,130 (4.41% of net assets). Their values have been estimated by the Board of Directors
in the absence of readily ascertainable market values. However, because of the inherent uncertainty of
valuation, those estimated values may differ significantly from the values that would have been used had
a ready market for the securities existed, and the difference could be material. The cost of these securities
at December 31, 1996 aggregated $6,954,194. These securities may also have certain restrictions as to resale.
(d) 1 Unit = 1 common share and 1/2 purchase warrant.
(e) 1 Unit = 1 common share and 1 purchase warrant.
(f) 1 Special Warrant = 1 common share.
(g) 1 Special Warrant = 1 common share and 1/2 purchase warrant.
(h) 1 Special Warrant = 1 common share and 1 purchase warrant.
(i) 1 Purchase Warrant = 1 common share.
(j) Two half Purchase Warrants = 1 common share.
(k) New shares issued during 1996, eligible for a pro rata share of 1996 dividends.
(l) Restricted Securities - securities which have not been registered with the Securities and Exchange Commission
under the Securities Act of 1933. Information concerning such restricted securities at December 31, 1996 is as
follows:
Security Shares Acquisition Date Cost ($)
-------------------- --------- ------------------ ----------
Piedmont Mining Co. 700,000 12/20/96 280,000
Currency Abbreviations
- --------------------------
CAD Canadian Dollars
See page 5 for the breakdown of the Fund's common stocks.
The accompanying notes are an integral part of the financial statements.
</TABLE>
14-SCUDDER GOLD FUND
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 1996
ASSETS
- -----------------------------------------------------------------------------------------------------------------------
<S> <C>
Investments, at market (identified cost $143,072,516) (Note A)...................... $ 165,442,080
Gold, at market, 45,701.444 oz. (identified cost $17,734,874) (Note A).............. 16,888,969
Platinum, at market 2,433.672 oz. (identified cost $899,757) (Note A)............... 901,067
Cash................................................................................ 2,371
Receivable for investments sold..................................................... 1,017,000
Receivable for Fund shares sold..................................................... 1,454,257
Dividends and interest receivable................................................... 18,594
Other assets........................................................................ 2,649
---------------
Total assets........................................................................ 185,726,987
LIABILITIES
- -----------------------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed.................................................... 1,241,586
Accrued management fee (Note C)..................................................... 154,852
Other accrued expenses (Note C)..................................................... 154,342
---------------
Total liabilities................................................................... 1,550,780
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS, AT MARKET VALUE $ 184,176,207
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------
Net assets consist of:
Accumulated distributions in excess of net investment income...................... (29,038,002)
Net unrealized appreciation (depreciation) on:
Investment securities............................................................. 22,369,564
Gold.............................................................................. (845,905)
Platinum.......................................................................... 1,310
Accumulated net realized gains...................................................... 8,148,502
Paid-in capital..................................................................... 183,540,738
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS, AT MARKET VALUE $ 184,176,207
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
- -----------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share ($184,176,207/
14,526,391 shares of capital stock outstanding, $.01 par value 100,000,000 shares ---------------
of capital stock authorized)...................................................... $ 12.68
---------------
The accompanying notes are an integral part of the financial statements.
</TABLE>
15-SCUDDER GOLD FUND
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1996
INVESTMENT INCOME
- -----------------------------------------------------------------------------------------------------------------------
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $27,560)................................ $ 404,311
Interest (net of foreign taxes withheld of $11,278)................................. 261,714
---------------
666,025
Expenses:
Management fee (Note C)............................................................. 992,768
Services to shareholders (Note C)................................................... 285,001
Custodian and accounting fees (Note C).............................................. 104,475
Directors' fees and expenses (Note C)............................................... 9,928
Auditing............................................................................ 37,057
Reports to shareholders............................................................. 47,429
Federal and state registration...................................................... 56,104
Legal............................................................................... 12,559
Interest............................................................................ 8,599
Other............................................................................... 15,183
---------------
1,569,103
- -----------------------------------------------------------------------------------------------------------------------
NET INVESTMENT LOSS (903,078)
- -----------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT TRANSACTIONS
- -----------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from:
Investment securities............................................................... 11,497,343
Gold................................................................................ (1,531,485)
Foreign currency related transactions............................................... (15,331)
---------------
9,950,527
---------------
Net unrealized appreciation (depreciation) during the period on:
Investment securities............................................................... (12,902,293)
Gold................................................................................ (149,176)
Platinum............................................................................ (46,483)
Foreign currency related transactions............................................... 190
---------------
(13,097,762)
- -----------------------------------------------------------------------------------------------------------------------
NET LOSS ON INVESTMENT TRANSACTIONS (3,147,235)
- -----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (4,050,313)
- -----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
</TABLE>
16-SCUDDER GOLD FUND
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS
ENDED YEAR ENDED
DECEMBER 31, 1996 JUNE 30,
INCREASE (DECREASE) IN NET ASSETS 1996 1996
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment loss................................................................. $ (903,078) $ (942,295)
Net realized gain from investment transactions...................................... 9,950,527 24,235,298
Net unrealized appreciation (depreciation) on investment transactions
during the period................................................................. (13,097,762) 21,052,990
--------------- ---------------
Net increase (decrease) in net assets resulting from operations..................... (4,050,313) 44,345,993
--------------- ---------------
Distributions to shareholders:
In excess of net investment income.................................................. (32,213,271) (10,004,029)
--------------- ---------------
From net realized gains from investment transactions................................ (3,509,513) (5,863,581)
--------------- ---------------
Fund share transactions:
Proceeds from shares sold........................................................... 187,774,597 245,536,569
Net asset value of shares issued to shareholders in reinvestment of
distributions..................................................................... 32,732,697 14,863,510
Cost of shares redeemed............................................................. (169,438,434) (242,408,708)
--------------- ---------------
Net increase in net assets from Fund share transactions............................. 51,068,860 17,991,371
--------------- ---------------
Increase (decrease) in net assets................................................... 11,295,763 46,469,754
Net assets at beginning of period................................................... 172,880,444 126,410,690
Net assets at end of period (including accumulated distributions in
excess of net investment income of $29,038,002 and undistributed
--------------- ---------------
net investment income of $4,078,347, respectively)................................ $ 184,176,207 $ 172,880,444
--------------- ---------------
OTHER INFORMATION
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Fund shares
Shares outstanding at beginning of period........................................... 11,273,441 9,826,603
--------------- ---------------
Shares sold......................................................................... 12,654,574 16,651,785
Shares issued to shareholders in reinvestment of distributions...................... 2,401,703 1,267,675
Shares redeemed..................................................................... (11,803,327) (16,472,622)
--------------- ---------------
Net increase in Fund shares......................................................... 3,252,950 1,446,838
--------------- ---------------
Shares outstanding at end of period................................................. 14,526,391 11,273,441
--------------- ---------------
The accompanying notes are an integral part of the financial statements.
</TABLE>
17-SCUDDER GOLD FUND
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
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 OF OPERATIONS)
DECEMBER 31, YEARS ENDED JUNE 30, TO JUNE 30,
1996(a) 1996(a) 1995(a) 1994(a) 1993(a) 1992(a) 1991 1990 1989
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of -----------------------------------------------------------------------------------
period............................. $15.34 $12.86 $12.64 $12.13 $9.19 $9.87 $10.21 $10.58 $12.00
Income from investment operations: -----------------------------------------------------------------------------------
Net investment loss.................. (.07) (.09) (.08) (.10) (.08) (.12) (.04) .07 (.06)
Net realized and unrealized
gain (loss) on investment
transactions....................... .06 4.28 1.02 .85 3.02 (.56) (.30) (.34) (1.36)
Total from investment -----------------------------------------------------------------------------------
operations......................... (.01) 4.19 .94 .75 2.94 (.68) (.34) (.27) (1.42)
Less distributions: -----------------------------------------------------------------------------------
From net investment income........... -- -- -- -- -- -- -- (.01) --
In excess of net investment
income............................. (2.39) (1.08) (.25) (.24) -- -- -- -- --
From net realized gains on
investment transactions............ (.26) (.63) (.47) -- -- -- -- (.03) --
From paid-in capital................. -- -- -- -- -- -- -- (.06) --
-----------------------------------------------------------------------------------
Total distributions.................. (2.65) (1.71) (.72) (.24) -- -- -- (.10) --
-----------------------------------------------------------------------------------
Net asset value, end of period....... $12.68 $15.34 $12.86 $12.64 $12.13 $9.19 $9.87 $10.21 $10.58
- ------------------------------------------------------------------------------------------------------------------------
Total Return (%)..................... (.64)** 36.91 7.50 6.35 31.99 (6.89) (3.33) (2.71) (11.83)**
Ratios and Supplemental Data
Net assets, end of period
($ millions)....................... 184 173 126 130 90 31 33 17 9
Ratio of operating expenses
to average net assets (%).......... 1.57* 1.50 1.65 1.69 2.17 2.54 2.54 2.60 3.00*
Ratio of operating expenses
before expense reductions,
to average daily net
assets (%)......................... 1.57* 1.50 1.65 1.69 2.17 2.57 2.82 3.74 6.59*
Ratio of net investment income
(loss) to average net assets (%)... (.90)* (.61) (.69) (.81) (.81) (1.34) (.59) .34 (1.06)*
Portfolio turnover rate (%).......... 32.9* 29.7 42.0 50.8 59.2 57.5 71.4 80.6 34.5*
Average commission rate paid (b)..... $.0246 $.0309 $ -- $ -- $ -- $ -- $ -- $ -- $ --
(a) Based on monthly average shares outstanding during the period.
(b) Average commission rate paid per share of common and preferred stocks is calculated for
fiscal years ending on or after June 30, 1996.
* Annualized
** Not annualized
The accompanying notes are an integral part of the financial statements.
</TABLE>
18-SCUDDER GOLD FUND
<PAGE>
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 Fund's
financial statements are prepared in accordance with generally accepted
accounting principles which require the use of management estimates. The
policies described below are followed consistently by the Fund in the
preparation of its financial statements.
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.
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 10% of the value of the
Fund's total assets would be invested in restricted securities. The
aggregate fair value of restricted securities at December 31, 1996
amounted to $262,500 which represents 0.1% 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.
19-SCUDDER GOLD FUND
<PAGE>
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
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.
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.
B. PURCHASES AND SALES
For the six months ended December 31, 1996, purchases and sales of
investment securities (excluding short-term investments) aggregated
$43,996,180 and $26,236,940, respectively. During the six months ended
December 31, 1996, purchases and sales of gold aggregated $32,177,735
and $36,142,400.
20-SCUDDER GOLD FUND
<PAGE>
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, 1996, the fee pursuant to the Agreement
amounted to $992,768 of which $154,852 is unpaid at December 31, 1996.
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 subsidiary of the Adviser, is the
transfer, dividend paying and shareholder service agent. For the six
months ended December 31, 1996, the amount charged to the Fund by SSC
aggregated $210,888, of which $42,528 is unpaid at December 31, 1996.
Scudder Trust Company ("STC"), a subsidiary of the Adviser, provides
recordkeeping and other services in connection with certain retirement
and employee benefit plans invested in the Fund. For the six months
ended December 31, 1996, the amount charged to the Fund by STC
aggregated $7,782, of which $1,692 is unpaid at December 31, 1996
Scudder Fund Accounting Corporation ("SFAC"), a subsidiary of the
Adviser, is responsible for determining the daily net asset value per
share and maintaining the portfolio and general accounting records of
the Fund. For the six months ended December 31, 1996, the amount charged
to the Fund by SFAC aggregated $30,036, of which $5,226 is unpaid at
December 31, 1996.
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, 1996, Directors' fees
and expenses aggregated $9,928.
D. LINES OF CREDIT
The Fund and several affiliated Funds ("the Participants") share in a
$500 million revolving credit facility for temporary or emergency
purposes, including the meeting of redemption requests that otherwise
might require the untimely disposition of securities. The Participants
are charged an annual commitment fee which is allocated among each of
the Participants. Interest is calculated based on the market rates at
the time of the borrowing. The Fund may borrow up to a maximum of 33
percent of its net assets under the agreement. In addition, the Fund
also maintains an uncommitted line of credit.
21-SCUDDER GOLD FUND
<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, 1996, 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, 1996, and the consolidated financial
highlights for the six-month period ended December 31, 1996, for each of
the seven years in the period ended June 30, 1996, 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,
1996, by correspondence with the custodians. 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,
1996, 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, 1996, and
the consolidated financial highlights for the six-month period ended
December 31, 1996, for each of the seven years in the period ended June
30, 1996, 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 13, 1997
22-Scudder Gold Fund
<PAGE>
Shareholder Meeting Results
A special meeting of shareholders of Scudder Gold Fund was held on Wednesday,
September 4, 1996, at the offices of Scudder, Stevens & Clark, Inc., 345 Park
Avenue, New York, New York. The five matters voted upon by the shareholders and
the resulting votes for each matter are presented below.
1. The election of five Directors to hold office until their respective
successors shall have been duly elected and qualified.
Number of Votes:
----------------
Trustee For Witheld Broker Non-Votes*
------- --- ------- ----------------
Daniel Pierce 7,218,388 181,253 0
Thomas J. Devine 7,179,639 220,002 0
Keith R. Fox 7,188,954 210,687 0
Dr. Gordon Shillinglaw 7,173,477 226,164 0
Dudley Ladd 7,189,687 209,953 0
2. Approval or disapproval of a new Investment Management Advisory Agreement
between the Fund and Scudder, Stevens & Clark, Inc.
Number Of Votes:
----------------
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
6,838,310 234,368 326,962 0
3. Approval or disapproval of Articles of Amendment and Restatement to the
Fund's Articles of Incorporation, as amended.
Number of Votes:
----------------
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
5,685,595 365,169 325,521 1,023,355
4. Ratification or rejection of the action taken by the Board of Directors in
selecting Coopers & Lybrand L.L.P as independent accountants for the fiscal
year ending June 30, 1997.
Number of Votes:
----------------
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
7,125,093 81,763 192,784 0
23-SCUDDER GOLD FUND
<PAGE>
5. Approval or disapproval of the elimination, amendment and/or
reclassification of certain fundamental investment restrictions.
A. Reclassification of and Amendment to the Fund's investment restriction with
respect to margin transactions.
Number of Votes:
----------------
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
5,772,491 572,606 31,188 1,023,355
B. Amendment to the Fund's investment restriction with respect to making loans
by purchasing securities.
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
5,765,857 580,388 30,041 1,023,355
C. Amendment to the Fund's investment restriction relating to underwriting
securities.
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
5,768,524 571,864 35,897 1,023,355
D. Amendments to the Fund's investment restriction with respect to investments
in real estate.
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
5,725,606 616,895 33,785 1,023,355
E. Amendments to the Fund's investment restriction with respect to
concentration of its assets.
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
5,775,954 565,629 34,703 1,023,355
F. Elimination of the Fund's investment restriction which prohibits investing
for the purpose of controlling another company.
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
5,785,518 559,673 31,095 1,023,355
24-SCUDDER GOLD FUND
<PAGE>
G. Reclassification of and amendments to the Fund's investment restriction
with respect to investments in issuers that have been in operation for less
than three years.
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
5,757,303 589,075 29,907 1,023,355
H. Reclassification of and amendments to the Fund's investment restriction
with respect to investments in securities of issuers in which management of
the Fund or Scudder owns securities.
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
5,762,401 579,512 34,373 1,023,355
I. Amendments to the Fund's investment restriction with respect to borrowing.
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
5,765,264 580,988 30,033 1,023,355
J. Elimination of the Fund's investment restriction prohibiting the issuance
of any securities.
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
5,757,740 583,977 34,568 1,023,355
K. Amendment to the Fund's investment restriction regarding the issuance of
senior securities.
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
5,754,299 586,338 35,649 1,023,355
* Broker non-votes are proxies received by the Fund from brokers or nominees
when the broker or nominee neither has received instructions from the
beneficial owner or other persons entitled to vote nor has discretionary
power to vote on a particular matter.
25-SCUDDER GOLD FUND
<PAGE>
Investment Products and Services
The Scudder Family of Funds+++
- --------------------------------------------------------------------------------
Money Market
- ------------
Scudder U.S. Treasury Money Fund
Scudder Cash Investment Trust
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 Limited Term Tax Free Fund
Scudder Medium Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder High Yield Tax Free Fund
Scudder California Tax Free Fund*
Scudder Massachusetts Limited Term
Tax Free Fund*
Scudder Massachusetts Tax Free Fund*
Scudder New York Tax Free Fund*
Scudder Ohio Tax Free Fund*
Scudder Pennsylvania Tax Free Fund*
U. S. Income
- ------------
Scudder Short Term Bond Fund
Scudder Zero Coupon 2000 Fund
Scudder GNMA Fund
Scudder Income Fund
Scudder High Yield Bond Fund
Global Income
- -------------
Scudder Global Bond Fund
Scudder International Bond Fund
Scudder Emerging Markets Income Fund
U.S. Growth and Income
- ----------------------
Scudder Balanced Fund
Scudder Growth and Income Fund
U.S. Growth
- -----------
Value
Scudder Large Company Value Fund
Scudder Value Fund
Scudder Small Company Value Fund
Scudder Micro Cap Fund
Growth
Scudder Classic Growth Fund
Scudder Quality Growth Fund
Scudder Development Fund
Scudder 21st Century Growth Fund
Global Growth
- -------------
Worldwide
Scudder Global Fund
Scudder International Fund
Scudder Global Discovery Fund
Scudder Emerging Markets Growth Fund
Scudder Gold Fund
Regional
Scudder Greater Europe Growth Fund
Scudder Pacific Opportunities Fund
Scudder Latin America Fund
The Japan Fund
Asset Allocation
- ----------------
Scudder Pathway Conservative Portfolio
Scudder Pathway Balanced Portfolio
Scudder Pathway Growth Portfolio
Scudder Pathway International Portfolio
Retirement Programs
- -------------------
IRA
SEP IRA
SIMPLE IRA
Keogh Plan
401(k), 403(b) Plans
Scudder Horizon Plan *+++ +++
(a variable annuity)
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.
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. +++Funds within categories are listed from expected
least to most risk. +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.
26-SCUDDER GOLD FUND
<PAGE>
How to Contact Scudder
Account Service and Information
- --------------------------------------------------------------------------------
For existing account services and transactions
Scudder Investor Relations -- 1-800-225-5163
For 24 hour account information, fund information, exchanges, and an
overview of all the services available to you
Scudder Electronic Account Services -- http://funds.scudder.com
For information about your Scudder accounts, exchanges and redemptions
Scudder Automated Information Line (SAIL) -- 1-800-343-2890
Investment Information
- --------------------------------------------------------------------------------
For information about the Scudder funds, including additional applications
and prospectuses, or for answers to investment questions
Scudder Investor Relations -- 1-800-225-2470
[email protected]
Scudder's World Wide Web Site -- http://funds.scudder.com
For establishing 401(k) and 403(b) plans
Scudder Defined Contribution Services -- 1-800-323-6105
Scudder Brokerage Services
- --------------------------------------------------------------------------------
To receive information about this discount brokerage service and to obtain
an application
Scudder Brokerage Services* -- 1-800-700-0820
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 Chicago San Francisco
Boston New York
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.
* Scudder Brokerage Services, Inc., 42 Longwater Drive, Norwell, MA 02061 --
Member NASD/SIPC.
** 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.
27-SCUDDER GOLD FUND
<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 over 40 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.
This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
SCUDDER
