Scudder New Europe Fund, Inc.
Semiannual Report
April 30, 1996
A closed-end investment company seeking
long-term capital appreciation through
investment primarily in equity
securities of companies traded on
smaller or emerging European markets and
companies that are viewed as likely to
benefit from changes and developments
throughout Europe.
<PAGE>
Scudder New Europe Fund, Inc.
Investment objectives and policies
* long-term capital appreciation through investment primarily in equity
securities of companies traded on smaller or emerging European markets and
companies that are viewed as likely to benefit from changes and developments
throughout Europe
Investment characteristics
* emphasis on "Specialized Investments," including equity securities of (i)
privately-held European companies, (ii) European companies that have recently
made initial public offerings of their shares, (iii) government-owned or
controlled European companies that are being privatized, (iv) smaller
publicly-held European companies, and (v) companies and joint ventures based
in Eastern Europe
* closed-end investment company
* a convenient vehicle for participation in opportunities available in smaller
and emerging European markets and that result from the dynamic changes
affecting Europe
Contents
================================================================================
In Brief 3
Letter to Shareholders 3
Investment Summary 7
Portfolio Summary 8
Investment Portfolio 9
Financial Statements 15
Financial Highlights 18
Notes to Financial Statements 19
Report of Independent Accountants 22
Other Information 23
Directors and Officers Back cover
General Information
================================================================================
Executive offices
Scudder New Europe Fund, Inc.
345 Park Avenue
New York, NY 10154
For Fund information: 1-800-349-4281
Transfer agent, registrar and dividend reinvestment plan agent
The First National Bank of Boston
P.O. Box 8200
Boston, MA 02266-8200
Telephone: 1-800-426-5523
Custodian
Brown Brothers Harriman & Co.
Independent Accountants
Coopers & Lybrand L.L.P.
New York Stock Exchange Symbol--NEF
This report is sent to the shareholders of Scudder New Europe Fund, Inc. for
their information. It is not a prospectus, circular, or representation intended
for use in the purchase or sale of shares of the Fund or of any securities
mentioned in the report.
2
<PAGE>
Scudder New Europe Fund, Inc.
In Brief
================================================================================
* The net asset value of Scudder New Europe Fund increased 14.73% over the six
months ended April 30, 1996, from $13.24 to $15.19. The Fund's share price
also increased over the period, by 19.51% from $10.25 to $12.25, and now
reflects a 19% discount to net asset value. For the trailing 12 months, the
Fund's net asset value and share price increased 25.95% and 27.27%,
respectively.
* Fund performance over the period benefited from some significant positions in
smaller companies with whom we have taken a patient approach, new offerings
such as Italian luxury goods manufacturers Gucci and Bulgari, and increased
participation in the emerging European markets, particularly Poland.
* In Continental Europe, sluggish economic growth, falling interest rates, and
a benign inflation environment are providing a positive backdrop to equity
investing. The momentum for cost-cutting and streamlining is in place and
managements, particularly in Germany, are focusing more on shareholder value.
New equity offerings and emerging markets continue to expand the range of
opportunities.
Letter to Shareholders
================================================================================
Dear Shareholders:
We are pleased to report that the net asset value of Scudder New Europe Fund
increased 14.73% over the six months ended April 30, 1996, from $13.24 to
$15.19. This performance compares favorably with the 8.54% return of the
unmanaged MSCI Europe Index, as well as the 12.06% average return of the two
other closed-end European region funds extant. The Fund's share price also
increased over the period, by 19.51% from $10.25 to $12.25, and reflects a 19%
discount to net asset value. For the trailing 12 months, the Fund's net asset
value increased 25.95%, again exceeding the MSCI Europe Index return and average
return for its peers, which were 15.95% and 21.83%, respectively. The Fund's
share price increased 27.27% over the 12-month period. The Fund's full
investment performance history is provided on page 7 under "Investment Summary."
Favorable Business Outlook and New Opportunities Help Performance
Most European markets had positive returns for the six months ended April 30.
Falling interest rates, corporate restructuring, and sector consolidation were
dominant themes driving equity performance throughout the region.
In Germany, stocks were encouraged both by a weaker deutschemark expected to
boost the export sector and the major restructuring being carried out by German
corporations. France rallied as the political situation stabilized, and was
further buoyed by strong earnings and the efforts of several major French
corporations to focus on shareholder value and streamline their businesses. The
U.K. market started on a positive note driven by sector consolidation, new peaks
on Wall Street, and falling interest rates. But sentiment turned negative as the
period progressed, sparked by the financial implications of Mad Cow disease and
the possibility of a less favorable business environment under a new government.
The Spanish market was one of the region's best performers during the period,
underpinned by falling interest rates and a change in political leadership.
An advantage of the Fund's closed-end structure is the increased ability to
hold smaller, less liquid equity issues. Fund performance over the period
3
<PAGE>
benefited in particular from some significant positions in smaller companies
with whom we have taken a patient approach. These include German life insurer
MLP and Dutch computer and software distributor Getronics, both of whom
displayed appreciation that recognizes the long-term strength of their
underlying businesses. The evolution of Europe's equity environment is reflected
in the contribution to performance of Italian luxury goods manufacturers Gucci
and Bulgari, both of whom recently turned to the equity markets for the first
time to support their growth. Performance was also driven by increased
participation in the emerging European markets, particularly Poland, where
holdings were up strongly over the period.
Outlook for Slow Growth
In Continental Europe, sluggish economic growth, falling interest rates and a
benign inflation environment are providing a positive backdrop to equity
investing. Economic activity has been dampened as governments struggle to
restrain fiscal spending ahead of the Maastricht deadline in 1997. The major
European economies, including Germany, no longer qualify for European Monetary
Union (EMU); and with unemployment continuing to soar, the pressures are
mounting to postpone or relax the criteria for EMU. The political commitment to
EMU is significant, however, and the process will remain at the heart of the
European agenda.
As the pressures of global competition build, the momentum for cost-cutting
and streamlining is in place. Managements, particularly in Germany, are focusing
more on shareholder value, and companies such as Daimler Benz have announced
share options for the first time. The anticipated $11 billion privatization of
Deutsche Telekom in 1996, one of the largest in European stock market history,
should help create an equity culture in a country where there has been little
interest in stocks. Even French managements, lagging in this regard and under
pressure from international investors, are beginning to unwind corporate
structures resulting from long standing and misguided diversification
strategies.
Privatizations, mergers and acquisitions, and corporate restructuring will
continue to be positive influences on European markets. The merger of Sandoz and
portfolio holding Ciba Geigy illustrates this trend. Both stocks rose over 40%
as the market recognized the strength and earning power of the combined entity,
Novartis, which will rank as number one globally in agrochemicals and number
three in pharmaceuticals.
Portfolio Strategy and Key Holdings
Over the period, the Fund initiated a number of new positions and also
significantly increased some earlier commitments. Saes Getters, a small Italian
multinational, falls into the latter category. The company is a market leader
and niche player in the production of getters -- ring-shaped metal containers
that create the vacuum in cathode tubes through a chemical and physical
reaction. Activities are grouped into three divisions: barium evaporable getters
(52% of sales) used in cathode ray tubes for television and computer screens,
non-evaporable getters (24% of sales) for street lighting and stainless steel
thermoses, and gas purification systems (24% of sales) used in semiconductor
manufacturing. The company has an 85% world market share in getter technologies
and boasts an impressive client list of multinational corporate giants.
Management has done an excellent job of insulating itself from competition by
focusing on niches that are too small or specialized to be of interest to larger
players. The company has a proven track record of high-quality research and
4
<PAGE>
careful management of intellectual property. Demand for TV and computer screens
is expected to rise significantly in emerging markets while strong growth is
expected in the gas purification division where the company has a technological
edge. Saes Getters is also working on developing several new products which
offer the potential of major upside in earnings. The stock boasts a return on
equity of over 22%, reflecting a high level of corporate efficiency.
New holding NBrown is one of the leading mail order catalog retailers in the
U.K., with 25% of the direct home shopping market. The company operates in a
niche segment of the business and was one of the first to recognize a gap in the
market for the larger, middle-aged woman. It is estimated that 25% of women over
the age of 55 are size 18 or larger, and 60% of total clothing expenditure in
the U.K. is incurred by women over 35. A focus on direct mail order rather than
agency sales -- where goods are sold by a third party -- enables NBrown to have
direct contact with the client and has resulted in an extensive data base of
buying characteristics. More recently, NBrown has been targeting the younger
customer and using cash flow from established catalogues to fund new titles.
NBrown is the most efficient mail order retailer in the business with a strong
technological edge over its competitors.
Saipem, an Italian oil services contractor for both onshore and offshore
construction and drilling, was also added to the portfolio over the period. The
company can offer "turnkey" services, an increasingly important feature from a
competitive standpoint. Onshore activities include pipelines, refineries,
petrochemical and power plants. The company also has a subsidiary focused on
subsea engineering. With 60% of sales derived from offshore activities, Saipem
is number one in the North Sea and shares the top ranking with J. Ray McDermott
International on a global scale. Industry conditions are improving and worldwide
oil and gas exploration and production expenditures, key drivers in the oil
field services cycle, are increasing. Offshore drilling has been on the upswing
since 1995 and there is a shortage of equipment, particularly in the North Sea.
The rigs in which Saipem specializes are in great demand, commanding premium
rates. The company has built up a $2.2 billion order backlog representing 18
months of activity. Saipem's earnings are expected to increase at an annual rate
of 21% over the next three years driven by growth in the offshore business and
recovery in land-based construction. Twenty percent of Saipem's shares are
likely to be placed on the market in 1997, enhancing stock liquidity.
Changes in Europe Hold Promise
European markets remain attractively valued overall relative to the United
States. Slow growth in the major economies has added to the momentum for rate
cuts by central banks, which should in turn promote a pickup in economic
activity as well as progress on the fiscal front. In addition, inflation in the
region is expected to remain benign. The ongoing process of economic integration
and industry restructuring should lead to even more profitable companies, while
new equity offerings and emerging markets are creating an ever-expanding sphere
of opportunity. Scudder New Europe Fund remains appropriate for long-term
investors seeking to benefit from the many exciting developments in the region.
A Team Approach to Investing
Scudder New Europe Fund, Inc. is managed by a team of Scudder investment
professionals who each play an important role in the portfolio's management
process. Team members work together to develop investment strategies and select
5
<PAGE>
securities for the 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.
Carol Franklin, Lead Portfolio Manager, sets Fund investment strategy and
oversees its daily operation. Carol has worked on international equity investing
as a portfolio manager at Scudder since 1981. Nicholas Bratt, Portfolio Manager,
helps set the Fund's general investment strategies. Nick has over 20 years of
experience in worldwide investing and has been at Scudder since 1976. Joan
Gregory, Portfolio Manager, focuses on stock selection, a role she has played
since she joined Scudder in 1992. Joan has been involved with investment in
global and international stocks as an assistant portfolio manager since 1989.
We are pleased that you are an investor in Scudder New Europe Fund, Inc. We
would be happy to receive any questions or comments. You can reach us at
1-800-349-4281.
Respectfully,
/s/Nicholas Bratt /s/Daniel Pierce
Nicholas Bratt Daniel Pierce
President Chairman of the Board
6
<PAGE>
SCUDDER NEW EUROPE FUND, INC.
INVESTMENT SUMMARY AS OF APRIL 30, 1996
- -----------------------------------------------------------------
HISTORICAL
INFORMATION TOTAL RETURN (%)
LIFE OF FUND ---------------------------------------------------------------
MARKET VALUE NET ASSET VALUE (a) INDEX (b)
------------------- -------------------- -------------------
AVERAGE AVERAGE AVERAGE
CUMULATIVE ANNUAL CUMULATIVE ANNUAL CUMULATIVE ANNUAL
------------------- -------------------- -------------------
CURRENT QUARTER 8.89 -- 11.53 -- 3.78 --
FISCAL YEAR TO
DATE 20.03 -- 15.22 -- 8.54 --
ONE YEAR 27.82 27.82 26.50 26.50 15.95 15.95
THREE YEARS 38.63 11.50 54.10 15.50 54.31 15.54
FIVE YEARS 52.52 8.81 58.98 9.72 74.51 11.77
LIFE OF FUND* 13.05 2.00 51.71 6.95 -- --
- -----------------------------------------------------------------
PER SHARE INFORMATION AND RETURNS (A)
YEARLY PERIODS ENDED APRIL 30
A chart in the form of a bar graph appears here,
illustrating the Fund Total Return (%) with the exact
data points listed in the table below.
1990* 1991 1992 1993 1994 1995 1996
--------------------------------------------------------
NET ASSET VALUE... $11.60 $10.26 $ 9.96 $ 9.90 $11.75 $12.06 $15.19
INCOME DIVIDENDS.. $ -- $ .47 $ .15 $ .08 $ -- $ -- $ .05
CAPITAL GAINS
AND OTHER
DISTRIBUTIONS..... $ -- $ .20 $ .15 $ .18 $ -- $ -- $ --
TOTAL RETURN (%).. 0.43 -4.98 0.55 2.60 18.69 2.64 26.50
(a) Total investment return reflects changes in net asset value per share
during each period and assume that dividends and capital gains
distributions, if any, were reinvested. These percentages are not an
indication of the performance of a shareholder's investment in the
Fund based on market price.
(b) MSCI Europe Index
* The Fund commenced operations on February 16, 1990.
PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE OF THE
FUND.
7
<PAGE>
SCUDDER NEW EUROPE FUND, INC.
PORTFOLIO SUMMARY AS OF APRIL 30, 1996
- ---------------------------------------------------------------------------
GEOGRAPHICAL
Geographical breakdown of the Fund's equity securities
Italy 15%
France 14%
Germany 14%
United Kingdom 12%
Netherlands 9%
Spain 7%
Sweden 6%
Other 23%
----
100%
====
A graph in the form of a pie chart appears here,
illustrating the exact data points in the
above table.
- ---------------------------------------------------------------------------
SECTORS
Sector breakdown of the Fund's equity securities
Financial 12%
Manufacturing 10%
Service Industries 10%
Consumer Staples 9%
Consumer Discretionary 9%
Durables 9%
Health 9%
Energy 8%
Technology 7%
Other 17%
----
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. GETRONICS N.V.
Dutch computer and software distributor
2. MARSCHOLLEK LAUTENSCHLAEGER UND PARTNER AG
Leading German independent life insurance company
3. ASTRA AB
Swedish pharmaceutical company
4. JERONIMO MARTINS
Portuguese food producer and retailer
5. MANNESMANN AG
German diversified construction and technology company
6. ADIDAS AG
Manufacturer of sport shoes, clothing and equipment in Germany
7. BULGARI SPA
Manufacturer and retailer of fine jewelry, luxury watches
and perfumes in Italy
8. BIS SA
Operator of temporary employment agencies in France and Switzerland
9. TELECOM ITALIA MOBILE SPA
Cellular telecommunication services in Italy
10. PRIMAGAZ
Liquified petroleum gas distributor in France
8
<PAGE>
SCUDDER NEW EUROPE FUND, INC.
INVESTMENT PORTFOLIO as of April 30, 1996
<TABLE>
<CAPTION>
Principal Market
Amount ($) Value ($)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT 6.1%
UNITED STATES 14,686,000 Repurchase Agreement with Donaldson, Lufkin &
Jenrette dated 4/30/96 at 5.32%to be repurchased
at $14,688,170 on 5/1/96, collateralized by a $13,880,000
U.S. Treasury Note, 8%, 8/15/99 (Cost $14,686,000) ........... 14,686,000
-----------
- ----------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS 6.9%
Shares
------
FRANCE 0.4% 5,000 Essilor International (Manufacturer of various types
of lenses, eyeglasses, contact lenses and optical
measuring instruments) ....................................... 960,292
-----------
GERMANY 6.2% 13,000 Draegerwerk AG (Producer of instruments for medical and
aeronautical technology) ..................................... 2,122,726
8,400 Marschollek Lautenschlaeger und Partner AG
(Leading independent life insurance company) ................. 8,476,536
30,000 SAP AG (Computer software manufacturer) ........................ 3,983,541
1,900 Spar Handels AG (Food and beverage wholesaler
and retailer) ................................................ 382,221
-----------
14,965,024
-----------
ITALY 0.3% 190,000 Cia. Assicuratrice Unipol SpA (Life and casualty insurance
company) ..................................................... 877,390
-----------
Total Preferred Stocks (Cost $6,268,927) ....................... 16,802,706
-----------
- ----------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS 87.0%
AUSTRIA 1.4% 15,000 VA Technologie AG (Engineering and construction company) ....... 1,992,851
16,000 VAE Eisenbahnsysteme AG (Manufacturer of electronic
control systems for use in rail transportation technology) ... 1,497,354
-----------
3,490,205
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
SCUDDER NEW EUROPE FUND, INC.
INVESTMENT PORTFOLIO (continued)
<TABLE>
<CAPTION>
Market
Shares Value ($)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CZECH REPUBLIC 1.2% 99,600 Central European Media Enterprises Ltd. "A"* (Owner
and operator of national and regional private commercial
television stations in central Europe and Germany) ........... 2,851,050
-----------
DENMARK 0.9% 47,000 Unidanmark A/S "A" (Bank holding company) ...................... 2,094,020
-----------
FINLAND 1.1% 620,000 Diamond Cruise Ltd.* (Cruise ship operator) (b) ................ 256,103
70,000 Nokia AB Oy "A" (Leading manufacturer of cellular
telephones) .................................................. 2,499,690
-----------
2,755,793
-----------
FRANCE 13.0% 10,200 Altran Technologies, SA (Engineering and consulting services
for aerospace, telecommunications and electronics fields) ... 2,754,037
39,000 BIS SA (Operator of temporary employment agencies in France
and Switzerland) ............................................. 4,329,729
20,600 Christian Dior (Leading fashion house) ........................ 2,745,179
17,043 Credit Local de France (Bank) .................................. 1,345,231
7,000 Essilor International (Manufacturer of various types of lenses,
eyeglasses, contact lenses and optical measuring instruments) 1,770,884
15,000 Group Axime* (Developer of financial databases,
communication networks and trading computer systems
for financial applications) .................................. 1,848,055
57,000 Michelin "B" (Leading tire manufacturer) ....................... 2,823,376
37,207 Primagaz (Liquified petroleum gas distributor) ................. 3,986,747
3,382 Primagaz Warrants* ............................................. 66,066
2,700 Salomon S.A. (Manufacturer of sports equipment) ................ 1,879,968
25,600 Sligos SA (Electrical payment and computing engineering
services company) ............................................ 2,460,824
37,559 Total SA "B" (International oil and gas exploration,
development and production) .................................. 2,547,616
49,726 Valeo SA (Automobile and truck components manufacturer) ........ 2,758,334
-----------
31,316,046
-----------
GERMANY 7.0% 59,130 Adidas AG* (Manufacturer of sport shoes, clothing and
equipment) ................................................... 4,499,295
15,000 Fresenius AG (Developer, manufacturer and distributor of
pharmaceuticals) ............................................. 2,390,516
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
Market
Shares Value ($)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
13,500 Mannesmann AG (Bearer) (Diversified construction
and technology company) ...................................... 4,611,541
4,300 Siemens AG (Bearer) (Manufacturer of electrical and
electronic equipment) ........................................ 2,354,391
60,000 VEBA AG (Electric utility, distributor of oil and chemicals) ... 2,982,267
-----------
16,838,010
-----------
HUNGARY 0.4% 9,000 EGIS (EDR) (Pharmaceutical company) ............................ 389,250
13,600 Pick Szeged* (GDS) (Sausage maker) ............................. 673,200
-----------
1,062,450
-----------
IRELAND 0.6% 1,300,000 Waterford Wedgewood PLC (Manufacturer of fine crystal
and china) (c) ............................................... 1,456,884
-----------
ITALY 13.5% 140,000 Avir Finanziaria SpA (Manufacturer and marketer of
drinking glasses, bottles and other glass containers
for the food industry) ....................................... 1,011,832
140,000 Banca Popolare di Bergamo-Credito Varesino SCaRL
(Private cooperative and retail bank) ........................ 2,283,339
350,000 Bulgari SpA* (Manufacturer and retailer of fine jewelry,
luxury watches and perfumes) ................................. 4,365,206
54,600 De Rigo SpA* (ADR) (Manufacturer and distributor of sunglasses
and prescription eyeglass frames) ............................ 1,678,950
200,000 Gewiss SpA (Manufacturer of electrical components) ............. 2,890,950
45,600 Gucci Group* (New York Shares) (Designer and producer of
personal luxury accessories and apparel) ..................... 2,479,500
2,000,000 Istituto Nazionale delle Assicurazione (Insurance company) ..... 3,070,035
435,000 La Rinascente SpA di Risparmio (Department store chain) ........ 1,332,683
50,000 Luxottica Group SpA (ADR) (Manufacturer and marketer of
eyeglasses) .................................................. 4,025,000
78,500 Saes Getters SpA (Manufacturer of getters, refined chemicals
used in cathode ray tubes and other monitors) ................ 1,983,211
55,000 Saes Getters SpA di Risparmio .................................. 1,090,502
600,000 Saipem SpA (International contractor in oil and gas exploration
and drilling, construction of refineries and pipelines) ...... 2,187,400
1,890,000 Telecom Italia Mobile SpA* (Cellular telecommunication
services) .................................................... 4,170,451
-----------
32,569,059
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
SCUDDER NEW EUROPE FUND, INC.
INVESTMENT PORTFOLIO (continued)
<TABLE>
<CAPTION>
Market
Shares Value ($)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NETHERLANDS 8.1% 134,837 Getronics N.V. (Computer and software distributor) ............. 9,364,227
19,625 Heineken Holdings N.V. "A" (Brewery) ........................... 3,676,466
40,000 IHC Caland N.V. (Dredging and offshore services) ............... 1,571,053
56,000 Koninklijke PTT Nederland (Telecommunication services) ......... 2,101,430
25,565 Wolters Kluwer CVA (Publisher) ................................. 2,794,470
-----------
19,507,646
-----------
NORWAY 0.9% 150,555 Saga Petroleum AS "A" (Oil and gas exploration and production) . 2,200,376
-----------
POLAND 5.2% 63,000 Bank Rozwoju Eksportu SA (Export bank) ......................... 1,503,665
13,900 Bank Slaski SA (Bank) .......................................... 1,039,692
64,000 Bygdoska Fabryka Kabli SA* (Manufacturer of cables, wires,
and insulating materials) .................................... 1,780,118
77,000 Debica SA "A" (Tire manufacturer) .............................. 1,823,341
54,000 Gorazdze Cement SA* (Cement producer) .......................... 1,735,388
22,000 Krosno S.A. (Manufacturer of wide range of glassware) .......... 392,783
202,000 Polifarb Cieszyn SA (Producer of synthetic resins, dyes,
varnishes and other chemicals) ............................... 1,062,958
240,000 Polifarb Wroclaw SA (Chemical producer) ........................ 1,082,503
97,000 Stomil Olsztyn SA* (Tire manufacturer) ......................... 1,421,913
9,400 Zaklady Piwowarskie w Zywcu S.A. (Brewery) ..................... 777,298
-----------
12,619,659
-----------
PORTUGAL 4.7% 81,633 Conduril SA (Construction Company) (b) ......................... 843,080
72,500 Jeronimo Martins (Food producer and retailer) .................. 5,828,286
110,300 Portugal Telecom SA (Telecommunication services) ............... 2,399,232
49,999 Publico Comunicacao Social SA* (Newspaper publisher) (b) ....... 637,498
162,500 Semapa SA* (Cement producer) ................................... 1,750,765
-----------
11,458,861
-----------
SPAIN 7.0% 22,990 Acerinox, S.A. (Stainless steel producer) ...................... 2,598,008
160,000 Autopistas del Mare Nostrum SA (Builder and operator of toll
motorways) ................................................... 1,923,772
47,000 Banco Pastor SA (Registered) (Bank) ............................ 2,692,574
30,000 Compania Telefonica Nacional de Espana S.A.
(Telecommunication services) ................................. 533,988
54,000 Compania Telefonica Nacional de Espana S.A. (ADR) .............. 2,841,750
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
Market
Shares Value ($)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
55,000 Cortefiel, S.A. (Operator of retail clothing stores, clothing
manufacturer) ................................................ 1,188,605
67,000 Repsol SA (Integrated oil company) ............................. 2,456,228
110,000 Uralita, SA (Processor of concrete pipes and cement for the
construction industry) ....................................... 1,080,550
16,500 Zardoya-Otis SA (Manufacturer and installer of elevator
equipment) ................................................... 1,633,792
-----------
16,949,267
-----------
SWEDEN 5.5% 171,200 Astra AB "A" (Free) (Pharmaceutical company) ................... 7,612,536
35,000 Autoliv AB (Free) (Manufacturer of safety airbags for
automobiles) ................................................. 1,909,889
180,400 L.M. Ericsson Telephone Co. "B" (ADR) (Leading
manufacturer of cellular telephone equipment) ................ 3,675,650
-----------
13,198,075
-----------
SWITZERLAND 5.0% 500 Baloise Holding Ltd. (Registered) (Provider of private,
commercial and corporate insurance, life insurance,
international reinsurance) ................................... 1,072,089
2,741 Brown, Boveri & Cie. AG (Bearer) (Manufacturer of electrical
equipment) ................................................... 3,299,168
1,800 Ciba-Geigy AG (Bearer) (Pharmaceutical company) ................ 2,075,308
271 Ciba-Geigy AG (Registered) ..................................... 314,193
4,900 Phoenix Mecano AG (Bearer) (Manufacturer of housings
and components for computers) ................................ 2,700,539
5,500 Societe Generale d'Affichage (Billboard operator) .............. 2,500,201
-----------
11,961,498
-----------
TURKEY 0.5% 1,062,000 Migros Turkey (Retailer) ....................................... 1,213,231
-----------
UNITED KINGDOM 11.0%
243,000 Brake Brothers PLC (Specialist supplier of frozen foods
to the catering industry) .................................... 2,617,302
396,000 Cobham PLC (Manufacturer of aerospace components) .............. 3,538,475
725 Creditanstalt Central Europe Fund (Investment company) (b) ..... 1,163,629
560,000 Hardy Oil & Gas PLC (Oil and gas exploration and
development) ................................................. 2,169,201
110,000 M.A.I.D. PLC* (Provider of access service to on-line business
information) ................................................. 400,445
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
SCUDDER NEW EUROPE FUND, INC.
INVESTMENT PORTFOLIO (continued)
<TABLE>
<CAPTION>
Market
Shares Value ($)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
400,000 N Brown Group PLC (Home shopping catalogue retailer) ........... 2,078,943
105,000 PowerGen PLC (ADR) (Electric utility) .......................... 2,677,500
195,000 Provident Financial PLC (Personal finance group) ............... 2,816,050
475,000 Serco Group PLC (Facilities management company) ................ 3,751,348
201,408 Spirax-Sarco Engineering PLC (Manufacturer of products
for control and management of steam and other
industrial fluids) ........................................... 2,208,710
400,000 TLG PLC (Manufacturer and supplier of lighting
equipment and systems) ....................................... 947,228
70,000 Tibbett and Britten Group PLC (Transportation services for
manufacturing and retail industries) ......................... 637,071
225,000 Watmoughs Holdings PLC (Printer of high quality newspaper
supplements, tabloids, catalogues and brochures) ............. 1,492,642
-----------
26,498,544
-----------
Total Common Stocks (Cost $141,087,955) ........................ 210,040,674
-----------
- ----------------------------------------------------------------------------------------------------------------------------
Total Investment Portfolio - 100.0% (Cost $162,042,882) (a) .... 241,529,380
===========
</TABLE>
(a) The cost for federal income tax purposes was $162,052,773. At April 30,
1996, net unrealized appreciation for all securities based on tax cost was
$79,476,607. This consisted of aggregate gross unrealized appreciation for
all securities in which there was an excess of market value over tax cost
of $83,722,943 and aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over market value of
$4,246,336.
(b) Securities valued in good faith by the Valuation Committee of the Board of
Directors. The cost of these securities at April 30, 1996 aggregated
$5,149,971. See Note A of the Notes to Financial Statements.
(c) Security trades in units; however, equivalent shares are represented in the
investment portfolio.
* Non-income producing security.
Sector breakdown of the Fund's equity securities is noted on page 8.
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
SCUDDER NEW EUROPE FUND, INC.
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1996
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments, at market (identified cost $162,042,882) (Note A) ...... $ 241,529,380
Cash ................................................................ 109
Receivables:
Investments sold .................................................. 3,937,604
Dividends and interest ............................................ 362,572
Foreign taxes recoverable ......................................... 456,834
-------------
Total assets .................................................... 246,286,499
LIABILITIES
Payables:
Investments purchased ............................................. $ 2,122,712
Accrued management fee (Note C) ................................... 234,928
Other accrued expenses (Note C) ................................... 162,563
-------------
Total liabilities ............................................... 2,520,203
-------------
Net assets, at market value ......................................... $ 243,766,296
=============
NET ASSETS
Net assets consist of:
Accumulated net investment loss ................................... $ (257,033)
Accumulated net realized loss ..................................... (15,221,222)
Unrealized appreciation (depreciation) on:
Investments ..................................................... 79,486,498
Foreign currency related transactions ........................... (16,453)
Common stock ...................................................... 160,475
Additional paid-in capital ........................................ 179,614,031
-------------
Net assets, at market value ......................................... $ 243,766,296
=============
NET ASSET VALUE per share ($243,766,296/16,047,487 shares of
common stock issued and outstanding, $.01 par value,
100,000,000 shares authorized) .................................... $ 15.19
=============
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
SCUDDER NEW EUROPE FUND, INC.
FINANCIAL STATEMENTS (continued)
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Six Months Ended April 30, 1996
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Investment income
Income:
Dividends (net of foreign taxes withheld of $155,196) .. $ 1,035,212
Interest ............................................... 477,268
------------
1,512,480
Expenses:
Management fee (Note C) ................................ $ 1,308,855
Custodian and accounting fees (Note C) ................. 208,501
Directors' fees and expenses (Note C) .................. 64,687
Reports to shareholders ................................ 55,953
Auditing ............................................... 37,907
Services to shareholders ............................... 19,220
Legal .................................................. 4,876
Other .................................................. 23,777 1,723,776
------------ ------------
Net investment loss ...................................... (211,296)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT
TRANSACTIONS NET REALIZED GAIN (LOSS) FROM:
Investments ............................................ 26,843
Foreign currency related transactions .................. (7,783) 19,060
------------
Net unrealized appreciation (depreciation) during
the period on:
Investments ............................................ 32,268,191
Foreign currency related transactions .................. (49,564) 32,218,627
------------ ------------
Net gain on investment transactions ...................... 32,237,687
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ....... $ 32,026,391
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------------
Six Months
Ended Year Ended
April 30, October 31,
Increase (Decrease in Net Assets 1996 1995
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income (loss) ....................................... $ (211,296) $ 751,285
Net realized gain from investment transactions ..................... 19,060 10,408,502
Net unrealized appreciation on investment transactions
during the period ................................................ 32,218,627 15,126,754
------------- -------------
Net increase in net assets resulting from operations ................. 32,026,391 26,286,541
------------- -------------
Distributions to shareholders from net investment income
($.05 per share) ................................................. (802,249) --
------------- -------------
Net asset value of shares issued to shareholders in reinvestment
of distributions ................................................... 29,112 --
------------- -------------
Increase in net assets ............................................... 31,253,254 26,286,541
Net assets at beginning of period .................................... 212,513,042 186,226,501
------------- -------------
Net assets at end of period (including accumulated net
investment loss of $257,033 and undistributed net
investment income of $756,512, respectively) ....................... $ 243,766,296 $ 212,513,042
============= =============
Other Information
Fund Shares
Shares outstanding at beginning of period ............................ 16,044,970 16,044,970
Shares issued to shareholders in reinvestment of distributions ....... 2,517 --
------------- -------------
Shares outstanding at end of period .................................. 16,047,487 16,044,970
============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
SCUDDER NEW EUROPE FUND, INC.
FINANCIAL HIGHLIGHTS
The following table includes selected data for a share outstanding throughout
each period (a) and other performance information derived from the financial
statements and market price data.
<TABLE>
<CAPTION>
Six Months
Ended Years Ended October 31,
April 30, ---------------------------------------------------------
1996 1995 1994 1993 1992 1991
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ...................... $ 13.24 $ 11.61 $ 10.72 $ 9.12 $ 10.12 $ 11.01
--------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income (loss) ............................ (.01) .05 .02 .03 .07 .19
Net realized and unrealized gain (loss)
on investment transactions............................. 2.01 1.58 0.87 1.83 (.77) (.41)
--------- --------- --------- --------- --------- ---------
Total from investment operations .......................... 2.00 1.63 0.89 1.86 (.70) (.22)
--------- --------- --------- --------- --------- ---------
Less distributions from:
Net investment income.................................... (.05) -- -- (.08) (.15) (.47)
Net realized gains on investment ........................ -- -- -- (.18) (.13) (.20)
transactions
Additional paid-in capital .............................. -- -- -- -- (.02) --
--------- --------- --------- --------- --------- ---------
Total distributions ....................................... (.05) -- -- (.26) (.30) (.67)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ............................ $ 15.19 $ 13.24 $ 11.61 $ 10.72 $ 9.12 $ 10.12
========= ========= ========= ========= ========= =========
Market value, end of period ............................... $ 12.25 $ 10.25 $ 9.75 $ 10.25 $ 8.25 $ 9.00
========= ========= ========= ========= ========= =========
Total Return
Per share market value (%) ................................ 20.03** 5.13 (4.88) 28.25 (5.05) 7.43
Per share net asset value (%) (b) ......................... 15.22** 14.04 8.30 21.33 (6.65) (1.26)
Ratios and Supplemental Data
Net assets, end of period ($ millions) .................... 244 213 186 172 146 162
Ratio of operating expenses to average
net assets (%)........................................... 1.55* 1.62 1.67 1.72 1.76 1.85
Ratio of net investment income (loss) to .................. (.19)* .39 .20 .33 .78 1.74
average net assets (%)
Portfolio turnover rate (%) ............................... 39.7* 32.4 43.2 32.7 25.7 31.7
Average commission rate paid (c) .......................... $ .0389 $ -- $ -- $ -- $ -- $ --
</TABLE>
(a) Based on monthly average of shares outstanding during the period.
(b) Total investment returns reflect changes in net asset value per share
during each period and assume that dividends and capital gains
distributions, if any, were reinvested. These percentages are not an
indication of the performance of a shareholder's investment in the Fund
based on market price.
(c) Average commission rate paid per share of portfolio securities is
calculated for fiscal years beginning on or after September 1, 1995.
* Annualized
** Not annualized
18
<PAGE>
SCUDDER NEW EUROPE FUND, INC.
NOTES TO FINANCIAL STATEMENTS
A. Significant Accounting Policies
- --------------------------------------------------------------------------------
Scudder New Europe Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940, as amended, as a non-diversified, closed-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.
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 quotations
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 fair value
amounted to $2,900,310 (1.19% of net assets) and have been noted in the
investment portfolio as of April 30, 1996. 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.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
certain banks and domestic or foreign 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 daily rates of exchange prevailing
on the respective dates of such transactions.
19
<PAGE>
SCUDDER NEW EUROPE FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund does not isolate that portion of gains and losses on investments which
is due to changes in the 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 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.
Accordingly, the Fund paid no federal income taxes, and no federal income tax
provision was required.
At October 31, 1995, the Fund had a net tax basis capital loss carryforward of
approximately $15,240,000 which may be applied against any realized net taxable
capital gains of each succeeding year until fully utilized or until October 31,
2001, the expiration date.
Distribution of Income and Gains. Distribution of net investment income is 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 annually. An additional distribution may be made to the extent
necessary to avoid the payment of a four percent federal excise tax.
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 primarily relate to investments in forward contracts, passive
foreign investment companies, and foreign denominated investments. 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.
The Fund uses the identified cost method for determining realized gain or loss
on investments for both financial and federal income tax reporting purposes.
20
<PAGE>
Other. Investment security 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.
B. PURCHASES AND SALES OF SECURITIES
- --------------------------------------------------------------------------------
During the six months ended April 30, 1996, purchases and sales of investment
securities (excluding short-term investments) aggregated $40,728,975 and
$40,941,341, respectively.
C. RELATED PARTIES
- --------------------------------------------------------------------------------
Under the Fund's Investment Advisory, Management and Administration Agreement
(the "Management Agreement") with Scudder, Stevens & Clark, Inc. (the
"Manager"), the Manager directs the investments of the Fund in accordance with
the Fund's investment objectives, policies, and restrictions and under the
direction and control of the Fund's Board of Directors. In addition to portfolio
management services, the Manager provides certain administrative services in
accordance with the Management Agreement. The Fund pays to the Manager a monthly
fee at an annualized rate of 1.25% of the Fund's average weekly net assets up to
and including $75 million, 1.15% of such net assets on the next $125 million,
and 1.10% of such net assets in excess of $200 million, computed and accrued
daily and payable monthly. For the six months ended April 30, 1996, the fee
pursuant to such Management Agreement amounted to $1,308,855 which was
equivalent to an annual effective rate of 1.18% of the Fund's average weekly net
assets.
Effective November 29, 1995, Scudder Fund Accounting Corporation ("SFAC"), a
subsidiary of the Manager, assumed responsibility 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 April 30, 1996, the amount charged
to the Fund by SFAC aggregated $65,104, of which $12,942 is unpaid at April 30,
1996.
The Fund pays each Director not affiliated with the Manager $6,000 annually,
plus specified amounts for attended board and committee meetings. For the six
months ended April 30, 1996, Directors' fees and expenses aggregated $64,687, of
which $22,319 was unpaid at April 30, 1996.
21
<PAGE>
SCUDDER NEW EUROPE FUND, INC.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of Scudder New Europe Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of Scudder
New Europe Fund, Inc., including the investment portfolio as of April 30, 1996
and the related statement of operations for the six months then ended, the
statements of changes in net assets for the six months then ended and for the
year ended October 31, 1995, and the financial highlights for the six months
ended April 30, 1996 and for each of the five years in the period ended October
31, 1995. 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 owned as of April
30, 1996 by correspondence with the custodian 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 financial position of
Scudder New Europe Fund, Inc. as of April 30, 1996, the results of its
operations for the six months then ended, the changes in its net assets for the
six months then ended and for the year ended October 31, 1995, and the financial
highlights for the six months ended April 30, 1996 and for each of the five
years in the period ended October 31, 1995 in conformity with generally accepted
accounting principles.
Boston, Massachusetts COOPERS & LYBRAND L.L.P.
June 6, 1996
<PAGE>
22
Other Information
================================================================================
Investment Manager
The investment manager of Scudder New Europe Fund, Inc. is Scudder, Stevens &
Clark, Inc., one of the most experienced investment management and investment
counsel firms in the United States. Established in 1919, the firm provides
investment counsel for individuals, investment companies and institutions.
Scudder has offices throughout the United States and subsidiaries in London and
Tokyo.
Scudder has been a leader in international investment management for over 40
years. It manages Scudder International Fund, which was initially incorporated
in Canada in 1953 as the first foreign investment company registered with the
United States Securities and Exchange Commission. Scudder's investment company
clients include nine other open-end investment companies which invest primarily
in foreign securities.
In addition to the Fund, Scudder also manages the assets of seven other
closed-end investment companies which invest in foreign securities. The
Argentina Fund, Inc., The Brazil Fund, Inc., The Korea Fund, Inc., The Latin
America Dollar Income Fund, Inc., Scudder World Income Opportunities Fund, Inc.,
Scudder New Asia Fund, Inc., and The First Iberian Fund, Inc.
Dividend Reinvestment and Cash Purchase Plan
We are pleased to advise you of an optional plan for the automatic
reinvestment of your dividends and capital gains distributions in shares of the
Fund. We recommend that you consider enrolling in the Dividend Reinvestment and
Cash Purchase Plan (the "Plan") to build your investment. You may obtain more
detailed information by requesting a copy of the Plan from the Plan Agent. All
correspondence (including notifications) should be directed to: Scudder New
Europe Fund, Inc. Dividend Reinvestment and Cash Purchase Plan, c/o The First
National Bank of Boston, P.O. Box 8209, Boston, MA 02266-8209, 1-800-426-5523.
Net Asset Value
The Fund's NAV is published every Monday in The Wall Street Journal under the
heading "Closed End Funds." The Fund's NAV is also published in The New York
Times and Barron's.
As a service to overseas shareholders, the Fund's NAV is listed daily in The
Financial Times ("FT"). The NAV of the Fund, and other Scudder managed
closed-end funds, can be found in the "FT Managed Funds Service" section under
the heading "other off-shore funds" below the Scudder, Stevens & Clark banner.
23
<PAGE>
Directors and Officers
================================================================================
DANIEL PIERCE*
Chairman of the Board and Director
NICHOLAS BRATT*
President and Director
PAUL BANCROFT III
Director
MARY JOHNSTON EVANS
Director
RICHARD M. HUNT
Director
WILLIAM H. LUERS
Director
DR. WILSON NOLEN
Director
JURIS PADEGS*
Vice President and Director
LADISLAS O. RICE
Director
PAUL J. ELMLINGER*
Vice President and Assistant Secretary
CAROL L. FRANKLIN*
Vice President
JERARD K. HARTMAN*
Vice President
WILLIAM E. HOLZER*
Vice President
DAVID S. LEE*
Vice President
EDWARD J. O'CONNELL*
Vice President and Assistant Treasurer
KATHRYN L. QUIRK*
Vice President and Assistant Secretary
THOMAS F. McDONOUGH*
Secretary
PAMELA A. McGRATH*
Treasurer
COLEEN DOWNS DINNEEN*
Assistant Secretary
*Scudder, Stevens & Clark, Inc.
