This prospectus sets forth concisely the information about Scudder
Small Company Value Fund, a series of Scudder Securities Trust, an
open-end management investment company, that a prospective investor
should know before investing. Please retain it for future reference.
If you require more detailed information, a Statement of Additional
Information dated October 6, 1995, as amended from time to time, may
be obtained without charge by writing Scudder Investor Services, Inc.,
Two International Place, Boston, MA 02110-4103 or calling
1-800-225-2470. The Statement, which is incorporated by reference into
this prospectus, has been filed with the Securities and Exchange
Commission.
The Securities and Exchange Commission maintains a Web site
(http://www.sec.gov) that contains the Statement of Additional
Information, material incorporated by reference, and other information
regarding the Fund.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Scudder Small Company Value Fund
----------------------------------------------------------------------
Prospectus
October 6, 1995
As Revised
June 17, 1996
----------------------------------------------------------------------
A pure no-load(tm) (no sales charges) mutual fund which invests for
long-term growth of capital by seeking out undervalued stocks of small
U.S. companies.
Expense information
How to compare a Scudder pure no-load(tm) fund
This information is designed to help you understand the various
costs and expenses of investing in Scudder Small Company Value Fund
(the "Fund"). By reviewing this table and those in other mutual
funds' prospectuses, you can compare the Fund's fees and expenses
with those of other funds. With Scudder's pure no-load(tm) funds,
you pay no commissions to purchase or redeem shares, or to exchange
from one fund to another. As a result, all of your investment goes
to work for you.
1) Shareholder transaction expenses: Expenses charged directly to
your individual account in the Fund for various transactions.
Sales commissions to purchase shares (sales NONE
load)
Commissions to reinvest dividends NONE
Deferred sales charge NONE
Redemption fees payable to the Fund 1.00% *
Exchange fees payable to the Fund 1.00% *
2) Annual Fund operating expenses: Estimated expenses paid by the
Fund before it distributes its net investment income, expressed as a
percentage of the Fund's average daily net assets for the fiscal
year.
Investment management fee (after waiver) 0.10% **
12b-1 fees NONE
Other expenses 1.40%
------
Total Fund operating expenses 1.50% **
====
Example
Based on the estimated level of total Fund operating expenses listed
above, the total expenses relating to a $1,000 investment, assuming
a 5% annual return and redemption at the end of each period, are
listed below. Investors do not pay these expenses directly; they are
paid by the Fund before it distributes its net investment income to
shareholders.
1 Year 3 Years
$15 $ 47
See "Fund organization -- Investment adviser" for further
information about the investment management fee. This example
assumes reinvestment of all dividends and distributions and that the
percentage amounts listed under "Annual Fund operating expenses"
remain the same each year. This example should not be considered a
representation of past or future expenses or return. Actual Fund
expenses and return vary from year to year and may be higher or
lower than those shown.
* There is a 1% fee retained by the Fund which is imposed only on
redemptions or exchanges of shares held less than one year. You may
redeem by writing or calling the Fund. If you wish to receive your
redemption proceeds via wire, there is a $5 wire service fee. For
additional information, please refer to "Transaction information --
Exchanging and redeeming shares."
** Until December 31, 1996, the Adviser has agreed to waive a
portion of its investment management fee to the extent necessary so
that the total annualized expenses of the Fund do not exceed 1.50%
of average daily net assets. If the Adviser had not agreed to waive
a portion of its fee, it is estimated that annualized Fund expenses
would be: investment management fee 0.75%, other expenses 1.40% and
total operating expenses 2.15% for the initial fiscal period. To the
extent that expenses fall below the current expense limitation, the
Adviser reserves the right to recoup, during the fiscal year
incurred, amounts waived during the period, but only to the extent
that the Fund's expenses do not exceed 1.50%.
Financial Highlights
The following table includes selected data for a share outstanding
throughout the period and other performance information derived from
the financial statements.
If you would like more detailed information concerning the Fund's
performance, a complete portfolio listing and financial statements are
available in the Fund's Semiannual Report dated February 29, 1996 and
may be obtained without charge by writing or calling Scudder Investor
Services, Inc.
<TABLE>
<CAPTION>
<S> <C>
FOR THE PERIOD
OCTOBER 6, 1995
(COMMENCEMENT
OF OPERATIONS) TO
FEBRUARY 29, 1996
(UNAUDITED)
-----------------
Net asset value, beginning of period........................................... $12.00
------
Income from investment operations:
Net investment income (a).............................................. .05
Net realized and unrealized gain on investment transactions............ .68
------
Total from investment operations............................................... .73
------
Less distributions from net investment income.................................. (.05)
------
Net asset value, end of period................................................. $12.68
======
TOTAL RETURN (%)............................................................... 6.09 (b)**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period ($ millions)......................................... 25
Ratio of operating expenses, net to average daily net assets (%) (a)........... 1.50*
Ratio of net investment income to average daily net assets (%)................. 1.23*
Portfolio turnover rate (%).................................................... 4.76*
(a) Reflects a per share amount of expenses, exclusive of management fees,
reimbursed by the adviser............................................. $.04
Reflects a per share amount of management fee and
other fees not imposed................................................ $.11
Operating expense ratio including expenses
reimbursed, management fee and other expenses
not imposed (%)....................................................... 4.83*
(b) Total return does not reflect the effect of the applicable redemption fees.
* Annualized
** Not annualized
</TABLE>
A message from Scudder's chairman
Scudder, Stevens & Clark, Inc., investment adviser to the Scudder Family of
Funds, was founded in 1919. We offered America's first no-load mutual fund
in 1928. Today, we manage in excess of $90 billion for many private
accounts and over 50 mutual fund portfolios. We manage the mutual funds in
a special program for the American Association of Retired Persons, as well
as the fund options available through Scudder Horizon Plan, a
tax-advantaged variable annuity. We also advise The Japan Fund and nine
closed-end funds that invest in countries around the world.
The Scudder Family of Funds is designed to make investing easy and less
costly. It includes money market, tax free, income and growth funds as well
as IRAs, 401(k)s, Keoghs and other retirement plans.
Services available to all shareholders include toll-free access to the
professional service representatives of Scudder Investor Relations, easy
exchange among funds, shareholder reports, informative newsletters and the
walk-in convenience of Scudder Funds Centers.
All Scudder mutual funds are pure no-load(tm). This means you pay no
commissions to purchase or redeem your shares or to exchange from one fund
to another. There are no "12b-1" fees either, which many other funds now
charge to support their marketing efforts. All of your investment goes to
work for you. We look forward to welcoming you as a shareholder.
Scudder Small Company Value Fund
Investment objective
o long-term growth of capital
Investment characteristics
o a diversified, actively managed portfolio of domestic small
capitalization stocks
o a systematic, proprietary investment approach to uncovering
potentially undervalued small U.S. companies
o potential for above-average long-term growth with above-average
stock market risk
Contents
Investment objective and policies
Why invest in the Fund?
U.S. investment experience
What are the Fund's special risks?
Additional information about policies and investments
Distribution and performance information
Fund organization
Purchases
Exchanges and redemptions
Transaction information
Shareholder benefits
Trustees and Officers
Investment products and services
How to contact Scudder
Investment objective and policies
Scudder Small Company Value Fund (the "Fund"), a diversified series of
Scudder Securities Trust, invests for long-term growth of capital by
seeking out undervalued stocks of small U.S. companies. The Fund's
investment adviser, Scudder, Stevens & Clark, Inc. (the "Adviser"),
uses a systematic, proprietary investment approach to identify small,
domestic companies that, in the opinion of the Adviser, are selling at
prices that do not reflect adequately their long-term business
potential. These companies are often out of favor or not closely
followed by investors and, as a result, may offer substantial
appreciation potential over time.
The Fund is expected to provide little, if any, current income and is
designed for the aggressive portion of an investor's portfolio.
Although the Fund typically holds a large number of securities
identified through a quantitative, value-driven investment strategy,
it does entail above-average investment risk in comparison to the
overall U.S. stock market. Shares of the Fund should be purchased with
a long-term horizon in mind. To encourage long-term investment, a 1%
redemption and exchange fee, described more fully below, is payable to
the Fund for the benefit of remaining shareholders on shares held less
than one year.
Except as otherwise indicated, the Fund's investment objective and
policies are not fundamental and may be changed without a vote of
shareholders. Shareholders will receive written notice of any changes
in the Fund's objective. If there is a change in investment objective,
shareholders should consider whether the Fund remains an appropriate
investment in light of their then current financial position and
needs. There can be no assurance that the Fund's objective will be
met.
Investments
In pursuit of long-term growth of capital, the Fund invests, under
normal circumstances, at least 80% of its assets in the common stock
of small U.S. companies. The Fund will invest in securities of
companies that are similar in size to those in the Russell 2000(R)
Index of small stocks. The median market capitalization (i.e., current
stock price times shares outstanding) of the portfolio will be below
$500 million. The Fund may continue to hold securities of companies
that have grown in market capitalization above the maximum of the
Russell 2000 Index, but will generally not add to these holdings.
The Fund takes a diversified approach to investing in small
capitalization issues. It will not be unusual for the Fund to
participate in more than one hundred small companies, representing a
variety of U.S. industries.
While the Fund invests predominantly in common stocks, it can purchase
other types of equity securities including preferred stocks (either
convertible or nonconvertible), rights and warrants. Securities may be
listed on national exchanges or, more commonly, traded
over-the-counter. The Fund may invest up to 20% of its assets in U.S.
Treasury, agency and instrumentality obligations, may enter into
repurchase agreements and may engage in strategic transactions, using
such derivatives contracts as index options and futures, to increase
stock market participation, enhance liquidity and manage transaction
costs. In addition, for temporary or emergency purposes, such as
providing for redemptions or distributions, the Fund may borrow from
banks and other financial institutions in an amount not exceeding the
value of one-third of the Fund's total assets. The Fund will not
borrow for investment purposes.
For temporary defensive purposes, the Fund may invest without limit in
cash and cash equivalents when the Adviser deems such a position
advisable in light of economic or market conditions. More information
about these investment techniques is provided under "Additional
information about policies and investments."
Value investment approach
The Fund is actively managed using a disciplined, value-oriented
investment management approach. The Adviser uses a proprietary,
computerized model to identify for investment small public U.S.
companies selling at prices that, in the opinion of the Adviser, do
not reflect adequately their long-term business potential. Companies
represented in the portfolio of the Fund typically have the following
characteristics:
o Attractive valuations relative to the Russell 2000 Index -- a
widely used benchmark of small stock performance -- based on
measures such as price to earnings, price to book value and price
to cash flow ratios.
o Favorable trends in earnings growth rates and stock price
momentum.
The Fund's holdings are often out of favor or simply overlooked by
investors. Accordingly, their prices can rise either as a result of
improved business fundamentals, particularly when earnings grow faster
than general expectations, or as more investors come to recognize the
full extent of a company's underlying potential.
While the Fund involves above-average equity risk, the Fund's
value-oriented, systematic approach to investing is designed to
mitigate volatility of the Fund's share price relative to the small
capitalization sector of the U.S. stock market. This risk is further
managed by purchasing a large number of stocks, and employing
specialized portfolio management and trading techniques.
Why invest in the Fund?
Scudder Small Company Value Fund combines the long-term growth
potential of small company stocks with the defensive nature of value
investing. The Fund focuses on U.S. small capitalization issues that
may be out of favor or not closely followed by investors, yet which,
in the opinion of the Adviser, will reward investors with substantial
returns over time. U.S. small capitalization stocks have outperformed
large capitalization stocks over time, albeit with greater volatility
in returns. Since the Fund involves both above-average performance
opportunity and risk, it may be suitable for those individuals who are
investing for a long-term goal, such as accumulating assets for
retirement, funding a child's college education or building wealth for
future generations.
While the Fund may invest in a broad range of industries, it is not,
by itself, a complete investment program. Nonetheless, it can help
improve the diversification of an investment portfolio already holding
other types of stock and fixed-income securities. Historically, the
prices of value stocks, and in particular small company value stocks,
have not always moved in tandem with the prices of either large
company stocks or higher-risk small company "growth" issues. Thus,
Fund shares can add balance to a personal investment portfolio.
The Fund offers low-cost, convenient access to a sector of the U.S.
stock market in which investors might otherwise find difficult to
participate. On their own, individual investors might find it a
challenge to analyze data on small companies, receive complete,
up-to-date financial information, and buy and sell securities at
favorable prices. The Fund's portfolio management team assumes the
burden of these varied responsibilities for investors.
In addition, the Fund offers all the benefits of the Scudder Family of
Funds. Scudder, Stevens & Clark, Inc. manages a diverse family of pure
no-load(tm) funds and provides a wide range of services to help
investors meet their investment needs. Please refer to "Investment
products and services" for additional information.
U.S. investment experience
The Adviser has been managing U.S. stock portfolios since its founding
over 75 years ago. As of July 31, 1995, Scudder managed in excess of
$20 billion in U.S. equity securities, including over $5 billion in
domestically-oriented growth mutual funds. The Adviser manages Scudder
Development Fund, one of America's first small company mutual funds.
What are the Fund's special risks?
While historically small company stocks have outperformed the stocks
of large companies, the former have customarily involved more risk as
well. Small companies may have limited product lines, markets or
financial resources; may lack management depth or experience; and may
be more vulnerable to adverse general market or economic developments
than large companies. The prices of small company securities are often
more volatile than prices associated with large company issues, and
can display abrupt or erratic movements at times, due to limited
trading volumes and less publicly available information.
Also, because small companies normally have fewer shares outstanding
and these shares trade less frequently than large companies, it may be
more difficult for the Fund to buy and sell significant amounts of
such shares without an unfavorable impact on prevailing market prices.
Some of the companies in which the Fund may invest may distribute,
sell or produce products which have recently been brought to market
and may be dependent on key personnel.
The securities of small companies are often traded over-the-counter
and may not be traded in the volumes typical on a national securities
exchange. Consequently, in order to sell this type of holding, the
Fund may need to discount the securities from recent prices or dispose
of the securities over a long period of time.
Additional information about policies and investments
Investment restrictions
The Fund has adopted certain fundamental policies which may not be
changed without a vote of shareholders and which are designed to
reduce the Fund's investment risk.
The Fund may not borrow money except as a temporary measure for
extraordinary or emergency purposes and may not make loans except
through the lending of portfolio securities, the purchase of debt
securities or through repurchase agreements.
The Fund may not invest more than 25% of its total assets in
securities of companies in the same industry.
In addition, as a matter of nonfundamental policy, the Fund may not
invest more than 15% of its net assets, in the aggregate, in
securities which are not readily marketable, restricted securities and
repurchase agreements maturing in more than seven days. The Fund may
not invest more than 10% of its total assets in restricted securities,
and may not invest more than 5% of its net assets in warrants.
A complete description of these and other policies and restrictions is
contained under "Investment Restrictions" in the Fund's Statement of
Additional Information.
Common stocks
Under normal circumstances, the Fund invests at least 80% of its
assets in common stocks. Common stock is issued by companies to raise
cash for business purposes and represent a proportionate interest in
the issuing companies. Therefore, the Fund participates in the success
or failure of any company in which it holds stock. The market values
of equity securities can fluctuate significantly, reflecting the
business performance of the issuing company, investor perception and
general economic or financial market movements. Smaller companies are
especially sensitive to these factors and may even become valueless.
Despite the risk of price volatility, however, common stocks also
offer the greatest potential for gain on investment, compared to other
classes of financial assets such as bonds or cash equivalents.
Convertible securities
The convertible securities in which the Fund may invest consist of
bonds, notes, debentures and preferred stocks which may be converted
or exchanged at a stated or determinable exchange ratio into
underlying shares of common stock.
Prior to their conversion, convertible securities may have
characteristics similar to nonconvertible securities of the same type.
Repurchase agreements
As a means of earning income for periods as short as overnight, the
Fund may enter into repurchase agreements with selected banks and
broker/dealers. Under a repurchase agreement, the Fund acquires
securities, subject to the seller's agreement to repurchase at a
specified time and price.
The Fund may enter into repurchase commitments with any party deemed
creditworthy by the Adviser if the transaction is entered into for
investment purposes and the counterparty's creditworthiness is at
least equal to that of issuers of securities which the Fund may
purchase.
Strategic Transactions and derivatives
The Fund may, but is not required to, utilize various other investment
strategies as described below to hedge various market risks or to seek
gain. These strategies may be executed through the use of derivative
contracts. Such strategies are generally accepted as a part of modern
portfolio management and are regularly utilized by many mutual funds
and other institutional investors. Techniques and instruments may
change over time as new instruments and strategies are developed or
regulatory changes occur.
In the course of pursuing these investment strategies, the Fund may
purchase and sell exchange-listed and over-the-counter put and call
options on securities, equity and other financial instruments, and
purchase and sell financial futures contracts and options thereon
(collectively, all the above are called "Strategic Transactions").
Strategic Transactions may be used without limit to attempt to protect
against possible changes in the market value of securities held in or
to be purchased for the Fund's portfolio resulting from securities
market fluctuations, to protect the Fund's unrealized gains in the
value of its portfolio securities, to facilitate the sale of such
securities for investment purposes, or to establish a position in the
derivatives markets as a temporary substitute for purchasing or
selling particular securities. Some Strategic Transactions may also be
used to enhance potential gain although no more than 5% of the Fund's
assets will be committed to Strategic Transactions entered into for
non-hedging purposes. Any or all of these investment techniques may be
used at any time and in any combination, and there is no particular
strategy that dictates the use of one technique rather than another,
as use of any Strategic Transaction is a function of numerous
variables including market conditions. The ability of the Fund to
utilize these Strategic Transactions successfully will depend on the
Adviser's ability to predict pertinent market movements, which cannot
be assured. The Fund will comply with applicable regulatory
requirements when implementing these strategies, techniques and
instruments. Strategic Transactions involving financial futures and
options thereon will be purchased, sold or entered into only for bona
fide hedging, risk management or portfolio management purposes and not
for speculative purposes. Please refer to "Risk factors -- Strategic
Transactions and derivatives" for more information.
Risk factors
The Fund's risks are determined by the nature of the securities held
and the portfolio management strategies used by the Adviser. The
following are descriptions of certain risks related to the investments
and techniques that the Fund may use from time to time.
Repurchase agreements. If the seller under a repurchase agreement
becomes insolvent, the Fund's right to dispose of the securities may
be restricted, or the value of the securities may decline before the
Fund is able to dispose of them. In the event of the commencement of
bankruptcy or insolvency proceedings with respect to the seller of the
securities before repurchase of the securities under a repurchase
agreement, the Fund may encounter delay and incur costs, including a
decline in the value of the securities, before being able to sell the
securities. Some repurchase commitment transactions may not provide
the Fund with collateral marked-to-market during the term of the
commitment.
Convertible securities. While convertible securities generally offer
lower yields than nonconvertible debt securities of similar quality,
their prices may reflect changes in the value of the underlying common
stock. Convertible securities entail less credit risk than the
issuer's common stock.
Illiquid investments. The absence of a trading market can make it
difficult to ascertain a market value for illiquid investments.
Disposing of illiquid investments may involve time-consuming
negotiation and legal expenses, and it may be difficult or impossible
for the Fund to sell them promptly at an acceptable price.
Borrowing. Although the principal of the Fund's borrowing will be
fixed, the Fund's assets may change in value during the time a
borrowing is outstanding, increasing exposure to capital risk.
Strategic Transactions and derivatives. Strategic Transactions,
including derivative contracts, have risks associated with them
including possible default by the other party to the transaction,
illiquidity and, to the extent the Adviser's view as to certain market
movements is incorrect, the risk that the use of such Strategic
Transactions could result in losses greater than if they had not been
used. Use of put and call options may result in losses to the Fund,
force the sale or purchase of portfolio securities at inopportune
times or for prices higher than (in the case of put options) or lower
than (in the case of call options) current market values, limit the
amount of appreciation the Fund can realize on its investments or
cause the Fund to hold a security it might otherwise sell. The use of
options and futures transactions entails certain other risks. In
particular, the variable degree of correlation between price movements
of futures contracts and price movements in the related portfolio
position of the Fund creates the possibility that losses on the
hedging instrument may be greater than gains in the value of the
Fund's position. In addition, futures and options markets may not be
liquid in all circumstances and certain over-the-counter options may
have no markets. As a result, in certain markets, the Fund might not
be able to close out a transaction without incurring substantial
losses, if at all. Although the use of futures contracts and options
transactions for hedging should tend to minimize the risk of loss due
to a decline in the value of the hedged position, at the same time
they tend to limit any potential gain which might result from an
increase in value of such position. Finally, the daily variation
margin requirements for futures contracts would create a greater
ongoing potential financial risk than would purchases of options,
where the exposure is limited to the cost of the initial premium.
Losses resulting from the use of Strategic Transactions would reduce
net asset value, and possibly income, and such losses can be greater
than if the Strategic Transactions had not been utilized. The
Strategic Transactions that the Fund may use and some of their risks
are described more fully in the Fund's Statement of Additional
Information.
Distribution and performance information
Dividends and capital gains distributions
The Fund intends to distribute any dividends from net investment
income and any net realized capital gains after utilization of capital
loss carryforwards, if any, in November or December, although an
additional distribution may be made if necessary. Any dividends or
capital gains distributions declared in October, November or December
with a record date in such a month and paid the following January will
be treated by shareholders for federal income tax purposes as if
received on December 31 of the calendar year declared. According to
preference, shareholders may receive distributions in cash or have
them reinvested in additional shares of the Fund. If an investment is
in the form of a retirement plan, all dividends and capital gains
distributions must be reinvested into the shareholder's account.
Generally, dividends from net investment income are taxable to
shareholders as ordinary income. Long-term capital gains
distributions, if any, are taxable as long-term capital gains
regardless of the length of time shareholders have owned their shares.
Short-term capital gains and any other taxable income distributions
are taxable as ordinary income. A portion of such dividends from net
investment income may qualify for the dividends-received deduction for
corporations.
The Fund sends detailed tax information to shareholders about the
amount and type of its distributions by January 31 of the following
year.
Under normal investment conditions, it is anticipated that the Fund's
portfolio turnover rate will not exceed 75% for the initial fiscal
year. However, economic and market conditions may necessitate more
active trading, resulting in a higher portfolio turnover rate. A
higher rate involves greater brokerage expenses to the Fund and may
result in the realization of net capital gains, which would be taxable
to shareholders when distributed.
Performance information
From time to time, quotations of the Fund's performance may be
included in advertisements, sales literature or shareholder reports.
All performance figures are historical, show the performance of a
hypothetical investment and are not intended to indicate future
performance. "Total return" is the change in value of an investment in
the Fund for a specified period. The "average annual total return" of
the Fund is the average annual compound rate of return of an
investment in the Fund assuming the investment has been held for one
year and the life of the Fund as of a stated ending date. "Cumulative
total return" represents the cumulative change in value of an
investment in the Fund for various periods. All types of total return
calculations assume that all dividends and capital gains distributions
during the period were reinvested in shares of the Fund. "Capital
change" measures return from capital, including reinvestment of any
capital gains distributions but does not include the reinvestment of
dividends. Performance will vary based upon, among other things,
changes in market conditions and the level of the Fund's expenses.
Fund organization
Scudder Small Company Value Fund is a diversified series of Scudder
Securities Trust (the "Trust"), formerly Scudder Development Fund, an
open-end, management investment company registered under the
Investment Company Act of 1940 (the "1940 Act"). The Trust was
organized as a Massachusetts business trust in October 1985 and on
December 31, 1985 assumed the business of its predecessor. Its
predecessor was organized as a Delaware corporation in February 1970.
The Fund's activities are supervised by the Trust's Board of Trustees.
Shareholders have one vote for each share held on matters on which
they are entitled to vote. The Trust is not required to and has no
current intention of holding annual shareholder meetings, although
special meetings may be called for purposes such as electing or
removing Trustees, changing fundamental investment policies or
approving an investment management agreement. Shareholders will be
assisted in communicating with other shareholders in connection with
removing a Trustee as if Section 16(c) of the 1940 Act were
applicable.
Investment adviser
The Fund retains the investment management firm of Scudder, Stevens &
Clark, Inc., a Delaware corporation, to manage its daily investment
and business affairs subject to the policies established by the Board
of Trustees. The Trustees have overall responsibility for the
management of the Fund under Massachusetts law.
The Fund pays the Adviser an annual fee of 0.75% of the Fund's average
daily net assets. The fee is payable monthly, provided that the Fund
will make such interim payments as may be requested by the Adviser not
to exceed 75% of the amount of the fee then accrued on the books of
the Fund and unpaid. The fee is higher than the average management
fee, but not necessarily higher than that charged by funds with a
similar investment objective.
The Adviser has agreed to maintain the annualized expenses of the Fund
at no more than 1.50% of the average daily net assets of the Fund
until December 31, 1996.
Under the Investment Management Agreement with the Adviser, the Fund
is responsible for all of its expenses, including fees and expenses
incurred in connection with membership in investment company
organizations; brokers' commissions; legal, auditing and accounting
expenses; taxes and governmental fees; the fees and expenses of the
transfer agent; the expenses of and the fees for registering or
qualifying securities for sale; the fees and expenses of Trustees,
officers and employees of the Trust who are not affiliated with the
Adviser; the cost of printing and distributing reports and notices to
shareholders; and the fees and disbursements of custodians.
All of the Fund's expenses are paid out of gross investment income.
Shareholders pay no direct charges or fees for investment or
administrative services.
Scudder, Stevens & Clark, Inc. is located at Two International Place,
Boston, Massachusetts.
Transfer agent
Scudder Service Corporation, P.O. Box 2291, Boston, Massachusetts
02107-2291, a wholly-owned subsidiary of the Adviser, is the transfer,
shareholder servicing and dividend-paying agent for the Fund.
Underwriter
Scudder Investor Services, Inc., a wholly-owned subsidiary of the
Adviser, is the Fund's principal underwriter. Scudder Investor
Services, Inc. confirms, as agent, all purchases of shares of the
Fund. Scudder Investor Relations is a telephone information service
provided by Scudder Investor Services, Inc.
Custodian
State Street Bank and Trust Company is the Fund's custodian.
Fund accounting agent
Scudder Fund Accounting Corporation, a wholly-owned subsidiary of the
Adviser, is responsible for determining the daily net asset value per
share and maintaining the general accounting records of the Fund.
Purchases
------------ -----------------------------------------
Opening an Minimum initial investment: $1,000; IRAs
account $500
Group retirement plans (401(k), 403(b),
etc.) have similar or lower minimums.
See appropriate plan literature.
Make checks * By Mail Send your completed and
payable to signed application and
"The check
Scudder
Funds." by regular or by
mail to: express,
registered,
or certified
mail to:
The Scudder
Scudder Shareholder
Funds Services
P.O. Box Center
2291 42 Longwater
Boston, MA Drive
Norwell, MA
02107-2291 02061-1612
* By Wire Please see Transaction
information -- Purchasing
shares -- By wire
following these tables for
details, including the ABA
wire transfer number. Then
call 1-800-225-5163 for
instructions.
* In Person Visit one of our Funds
Centers to complete your
application with the help
of a Scudder
representative. Funds
Center locations are
listed under Shareholder
benefits.
------------ -----------------------------------------
Purchasing Minimum additional investment: $100;
additional IRAs $50
shares
Group retirement plans (401(k), 403(b),
etc.) have similar or lower minimums.
See appropriate plan literature.
Make checks * By Mail Send a check with a
payable to Scudder investment slip,
"The or with a letter of
Scudder instruction including your
Funds." account number and the
complete Fund name, to the
appropriate address listed
above.
* By Wire Please see Transaction
information -- Purchasing
shares -- By wire
following these tables for
details, including the ABA
wire transfer number.
* In Person Visit one of our Funds
Centers to make an
additional investment in
your Scudder fund account.
Funds Center locations are
listed under Shareholder
benefits.
* By You may purchase
Telephone additional shares in an
amount of $10,000 or more.
Please call 1-800-225-5163
for more details.
* By You may arrange to make
Automatic investments on a regular
Investment basis through automatic
Plan ($50 deductions from your bank
minimum) checking account. Please
call 1-800-225-5163 for
more information and an
enrollment form.
Exchanges and redemptions
------------ ---------------------------------------------------------
Exchanging Minimum investments: $1,000 to establish a new account;
shares $100 to exchange among existing accounts
* By To speak with a service representative,
Telephone call 1-800-225-5163 from 8 a.m. to 8 p.m.
eastern time or to access SAIL(tm),
Scudder's Automated Information Line, call
1-800-343-2890 (24 hours a day).
There is a * By Mail Print or type your instructions and
1% fee or Fax include:
payable to
the Fund - the name of the Fund and the account
for number you are exchanging from;
exchanges - your name(s) and address as they appear
of shares on your account;
held less - the dollar amount or number of shares
than one you wish to exchange;
year. - the name of the Fund you are exchanging
into; and
- your signature(s) as it appears on your
account and a daytime telephone number.
Send your instructions
by regular or by or by fax to:
mail to: express,
registered,
or certified
mail to:
The Scudder Scudder 1-800-821-6234
Funds Shareholder
P.O. Box Services
2291 Center
Boston, MA 42 Longwater
02107-2291 Drive
Norwell, MA
02061-1612
------------ ------------ -------------------------------------------
Redeeming * By To speak with a service representative,
shares Telephone call 1-800-225-5163 from 8 a.m. to 8 p.m.
eastern time or to access SAIL(tm),
Scudder's Automated Information Line, call
1-800-343-2890 (24 hours a day). You may
have redemption proceeds sent to your
predesignated bank account, or redemption
proceeds of up to $50,000 sent to your
address of record.
There is a * By Mail Send your instructions for redemption to
1% fee or Fax the appropriate address or fax number
payable to above and include:
the Fund
for - the name of the Fund and account number
redemption you are redeeming from;
of shares - your name(s) and address as they appear
held less on your account;
than one - the dollar amount or number of shares
year. you wish to redeem; and
- your signature(s) as it appears on your
account and a daytime telephone number.
A signature guarantee is required for
redemptions over $50,000. See Transaction
information -- Redeeming shares following
these tables.
* By You may arrange to receive automatic cash
Automatic payments periodically if the value of your
Withdrawal account is $10,000 or more. Call
Plan 1-800-225-5163 for more information and an
enrollment form.
Transaction information
Purchasing shares
Purchases are executed at the next calculated net asset value per
share after the Fund's transfer agent in Boston receives the purchase
request in good order. Purchases are made in full and fractional
shares. (See "Share price.")
By check. If you purchase shares with a check that does not clear,
your purchase will be canceled and you will be subject to any losses
or fees incurred in the transaction. Checks must be drawn on or
payable through a U.S. bank. If you purchase shares by check and
redeem them within seven business days of purchase, the Fund may hold
redemption proceeds until the purchase check has cleared. If you
purchase shares by federal funds wire, you may avoid this delay.
Redemption or exchange requests by telephone prior to the expiration
of the seven-day period will not be accepted.
By wire. To open a new account by wire, first call Scudder at
1-800-225-5163 to obtain an account number. A representative will
instruct you to send a completed, signed application to the transfer
agent in Boston. Accounts cannot be opened without a completed, signed
application and a Scudder fund account number. Contact your bank to
arrange a wire transfer to:
The Scudder Funds
State Street Bank and Trust Company
Boston, MA 02101
ABA Number 011000028
DDA Account 9903-5552
Your wire instructions must also include:
-- the name of the fund in which the money is to be invested,
-- the account number of the fund, and
-- the name(s) of the account holder(s).
The account will be established once the application and money order
are received in good order.
You may also make additional investments of $100 or more to your
existing account by wire.
By telephone order. Existing shareholders may purchase shares at a
certain day's price by calling 1-800-225-5163 before the close of
regular trading on the New York Stock Exchange (the "Exchange"),
normally 4 p.m. eastern time, on that day. Orders must be for $10,000
or more and cannot be for an amount greater than four times the value
of your account at the time the order is placed. A confirmation with
complete purchase information is sent shortly after your order is
received. You must include with your payment the order number given at
the time the order is placed. If payment by check or wire is not
received within three business days, the order is subject to
cancellation and the shareholder will be responsible for any loss to
the Fund resulting from this cancellation. Telephone orders are not
available for shares held in Scudder IRA accounts and most other
Scudder retirement plan accounts.
Exchanging and redeeming shares
Upon the redemption or exchange of shares held less than one year, a
fee of 1% of the current net asset value of the shares will be
assessed and retained by the Fund for the benefit of the remaining
shareholders. The fee is waived for all shares purchased through
certain retirement plans, including 401(k) plans, 403(b) plans, 457
plans, Keogh accounts, and Profit Sharing and Money Purchase Pension
Plans. However, if such shares are purchased through a broker,
financial institution or recordkeeper maintaining an omnibus account
for the shares, such waiver may not apply. (Before purchasing shares,
please check with your account representative concerning the
availability of the fee waiver.) In addition, this waiver does not
apply to IRA and SEP-IRA accounts. This fee is intended to encourage
long-term investment in the Fund, to avoid transaction and other
expenses caused by early redemptions, and to facilitate portfolio
management. The fee is not a deferred sales charge, is not a
commission paid to the Adviser or its subsidiaries, and does not
benefit the Adviser in any way. The Fund reserves the right to modify
the terms of or terminate this fee at any time. The fee applies to
redemptions from the Fund and exchanges to other Scudder funds, but
not to dividend or capital gains distributions which have been
automatically reinvested in the Fund. The fee is applied to the shares
being redeemed or exchanged in the order in which they were purchased.
See "Exchanges and Redemptions" in the Fund's Statement of Additional
Information for a more detailed description of the redemption fee.
Exchanges. Your new account will have the same registration and
address as your existing account.
The exchange requirements for corporations, other organizations,
trusts, fiduciaries, agents, institutional investors and retirement
plans may be different from those for regular accounts.
Please call 1-800-225-5163 for more information, including information
about the transfer of special account features.
You can also make exchanges among your Scudder fund accounts on SAIL,
the Scudder Automated Information Line, by calling 1-800-343-2890.
Redemptions by telephone. This is the quickest and easiest way to sell
Fund shares. If you elected telephone redemption to your bank on your
application, you can call to request that federal funds be sent to
your authorized bank account. If you did not elect telephone
redemption to your bank on your application, call 1-800-225-5163 for
more information.
Redemption proceeds will be wired to your bank unless otherwise
requested. If your bank cannot receive federal reserve wires,
redemption proceeds will be mailed to your bank. There will be a $5
charge for all wire redemptions.
You can also make redemptions from your Scudder fund account on SAIL
by calling 1-800-343-2890.
If you open an account by wire, you cannot redeem shares by telephone
until the Fund's transfer agent has received your completed and signed
application. Telephone redemption is not available for shares held in
Scudder IRA accounts and most other Scudder retirement plan accounts.
In the event that you are unable to reach the Fund by telephone, you
should write to the Fund; see "How to contact Scudder" for the
address.
Signature guarantees. For your protection and to prevent fraudulent
redemptions, on written redemption requests in excess of $50,000 we
require an original signature and an original signature guarantee for
each person in whose name the account is registered. (The Fund
reserves the right, however, to require a signature guarantee for all
redemptions.) You can obtain a signature guarantee from most banks,
credit unions or savings associations, or from broker/dealers,
municipal securities broker/dealers, government securities
broker/dealers, national securities exchanges, registered securities
associations or clearing agencies deemed eligible by the Securities
and Exchange Commission. Signature guarantees by notaries public are
not acceptable. Redemption requirements for corporations, other
organizations, trusts, fiduciaries, agents, institutional investors
and retirement plans may be different from those for regular accounts.
For more information, please call 1-800-225-5163.
Telephone transactions
Shareholders automatically receive the ability to exchange by
telephone and the right to redeem by telephone up to $50,000 to their
address of record. Shareholders also may, by telephone, request that
redemption proceeds be sent to a predesignated bank account. The Fund
uses procedures designed to give reasonable assurance that telephone
instructions are genuine, including recording telephone calls, testing
a caller's identity and sending written confirmation of telephone
transactions. If the Fund does not follow such procedures, it may be
liable for losses due to unauthorized or fraudulent telephone
instructions. The Fund will not be liable for acting upon instructions
communicated by telephone that it reasonably believes to be genuine.
Share price
Purchases and redemptions, including exchanges, are made at net asset
value. There is a 1% fee payable to the Fund for exchanges or
redemptions of shares held less than one year. Scudder Fund Accounting
Corporation determines net asset value per share as of the close of
regular trading on the Exchange, normally 4 p.m. eastern time, on each
day the Exchange is open for trading. Net asset value per share is
calculated by dividing the value of total Fund assets, less all
liabilities, by the total number of shares outstanding.
Processing time
All purchase and redemption requests received in good order by the
Fund's transfer agent in Boston by the close of regular trading on the
Exchange are executed at the net asset value per share calculated at
the close of regular trading that day.
Purchase and redemption requests received after the close of regular
trading on the Exchange will be executed the following business day.
If you wish to make a purchase of $500,000 or more, you should notify
Scudder Investor Relations by calling 1-800-225-5163.
The Fund will normally send your redemption proceeds within one
business day following the redemption request, but may take up to
seven business days (or longer in the case of shares recently
purchased by check).
Short-term trading
Purchases and sales should be made for long-term investment purposes
only. The Fund and Scudder Investor Services, Inc. each reserves the
right to restrict purchases of Fund shares (including exchanges) when
a pattern of frequent purchases and sales made in response to
short-term fluctuations in the Fund's share price appears evident.
Tax information
A redemption of shares, including an exchange into another Scudder
fund, is a sale of shares and may result in a gain or loss for income
tax purposes.
Tax identification number
Be sure to complete the Tax Identification Number section of the
Fund's application when you open an account. Federal tax law requires
the Fund to withhold 31% of taxable dividends, capital gains
distributions and redemption and exchange proceeds from accounts
(other than those of certain exempt payees) without a certified Social
Security or tax identification number and certain other certified
information or upon notification from the IRS or a broker that
withholding is required. The Fund reserves the right to reject new
account applications without a certified Social Security or tax
identification number. The Fund also reserves the right, following 30
days' notice, to redeem all shares in accounts without a certified
Social Security or tax identification number. A shareholder may avoid
involuntary redemption by providing the Fund with a tax identification
number during the 30-day notice period. Redemptions for failure to
provide a tax identification number are not subject to the 1%
redemption fee.
Minimum balances
Shareholders should maintain a share balance worth at least $1,000,
which amount may be changed by the Board of Trustees. Scudder
retirement plans have similar or lower minimum share balance
requirements. The Fund reserves the right, following 60 days' written
notice to shareholders, to redeem all shares in sub-minimum accounts,
including accounts of new investors, where a reduction in value has
occurred due to a redemption or exchange out of the account.
Reductions in value that result solely from market activity will not
trigger an involuntary redemption. The Fund will mail the proceeds of
the redeemed account to the shareholder. The shareholder may restore
the share balance to $1,000 or more during the 60-day notice period
and must maintain it at no lower than that minimum to avoid
involuntary redemption.
Third party transactions
If purchases and redemptions of Fund shares are arranged and
settlement is made at an investor's election through a member of the
National Association of Securities Dealers, Inc., other than Scudder
Investor Services, Inc., that member may, at its discretion, charge a
fee for that service.
Redemption-in-kind
The Fund reserves the right, if conditions exist which make cash
payments undesirable, to honor any request for redemption or
repurchase order by making payment in whole or in part in readily
marketable securities chosen by the Fund and valued as they are for
purposes of computing the Fund's net asset value (a
redemption-in-kind). If payment is made in securities, a shareholder
may incur transaction expenses in converting these securities to cash.
The Trust has elected, however, to be governed by Rule 18f-1 under the
1940 Act, as a result of which the Fund is obligated to redeem shares,
with respect to any one shareholder during any 90-day period, solely
in cash up to the lesser of $250,000 or 1% of the net asset value of
the Fund at the beginning of the period.
Shareholder benefits
Experienced professional management
Scudder, Stevens & Clark, Inc., one of the nation's most experienced
investment management firms, actively manages your Scudder fund
investment. Professional management is an important advantage for
investors who do not have the time or expertise to invest directly in
individual securities.
A team approach to investing
Scudder Small Company Value Fund is managed by a team of Scudder
investment professionals, who each play an important role in the
Fund's management process. Team members work together to develop
investment strategies and select securities for the Fund's portfolio.
Scudder believes its team approach benefits Fund investors by bringing
together many disciplines and leveraging Scudder's extensive
resources.
Philip S. Fortuna, Lead Portfolio Manager, joined Scudder in 1986 as
manager of institutional equity accounts. He became director of
quantitative research in 1987 and served as director of investment
operations from 1993 to 1994. James M. Eysenbach, Portfolio Manager,
joined Scudder in 1991 as a senior quantitative analyst and is
currently director of quantitative research for Scudder. Mr. Eysenbach
has more than eight years investment industry experience, including
three years as a portfolio manager.
SAIL(tm) -- Scudder Automated Information Line
For personalized account information including fund prices, yields and
account balances, to perform transactions in existing Scudder fund
accounts, or to obtain information on any Scudder fund, shareholders
can call Scudder's Automated Information Line (SAIL) at
1-800-343-2890, 24 hours a day. During periods of extreme economic or
market changes, or other conditions, it may be difficult for you to
effect telephone transactions in your account. In such an event you
should write to the Fund; please see "How to contact Scudder" for the
address.
Investment flexibility
Scudder offers toll-free telephone exchange between funds at current
net asset value. You can move your investments among money market,
income, growth, tax-free and growth and income funds with a simple
toll-free call or, if you prefer, by sending your instructions through
the mail or by fax. Telephone and fax redemptions and exchanges are
subject to termination and their terms are subject to change at any
time by the Fund or the transfer agent. In some cases, the transfer
agent or Scudder Investor Services, Inc. may impose additional
conditions on telephone transactions.
Dividend reinvestment plan
You may have dividends and distributions automatically reinvested in
additional Fund shares. Please call 1-800-225-5163 to request this
feature.
Shareholder statements
You receive a detailed account statement every time you purchase or
redeem shares. All of your statements should be retained to help you
keep track of account activity and the cost of shares for tax
purposes.
Shareholder reports
In addition to account statements, you receive periodic shareholder
reports highlighting relevant information, including investment
results and a review of portfolio changes.
To reduce the volume of mail you receive, only one copy of most Fund
reports, such as the Fund's Annual Report, may be mailed to your
household (same surname, same address). Please call 1-800-225-5163 if
you wish to receive additional shareholder reports.
Newsletters
Four times a year, Scudder sends you At the Helm, an informative
newsletter covering economic and investment developments, service
enhancements and other topics of interest to Scudder fund investors.
Scudder Funds Centers
As a convenience to shareholders who like to conduct business in
person, Scudder Investor Services, Inc. maintains Funds Centers in
Boca Raton, Boston, Chicago, Cincinnati, Los Angeles, New York,
Portland (OR), San Diego, San Francisco and Scottsdale.
T.D.D. service for the hearing impaired
Scudder's full range of investor information and shareholder services
is available to hearing impaired investors through a toll-free T.D.D.
(Telephone Device for the Deaf) service. If you have access to a
T.D.D., call 1-800-543-7916 for investment information or specific
account questions and transactions.
Scudder tax-advantaged retirement plans
Scudder offers a variety of tax-advantaged retirement plans for
individuals, businesses and non-profit organizations. These flexible
plans are designed for use with the Scudder Family of Funds (except
Scudder tax-free funds, which are inappropriate for such plans).
Scudder Funds offer a broad range of investment objectives and can be
used to seek almost any investment goal. Using Scudder's retirement
plans can help shareholders save on current taxes while building their
retirement savings.
o Scudder No-Fee IRAs. These retirement plans allow a maximum
annual contribution of $2,000 per person for anyone with earned
income. Many people can deduct all or part of their contributions
from their taxable income, and all investment earnings accrue on
a tax deferred basis. The Scudder No-Fee IRA charges no annual
custodial fee.
o 401(k) Plans. 401(k) plans allow employers and employees to make
tax-deductible retirement contributions. Scudder offers a full
service program that includes recordkeeping, prototype plan,
employee communications and trustee services, as well as
investment options.
o Profit Sharing and Money Purchase Pension Plans. These plans
allow corporations, partnerships and people who are self-employed
to make annual, tax-deductible contributions of up to $30,000 for
each person covered by the plans. Plans may be adopted
individually or paired to maximize contributions. These are
sometimes known as Keogh plans.
o 403(b) Plans. Retirement plans for tax-exempt organizations and
school systems to which employers and employees may both
contribute.
o SEP-IRAs. Easily administered retirement plans for small
businesses and self-employed individuals. The maximum annual
contribution to SEP-IRA accounts is adjusted each year for
inflation.
o Scudder Horizon Plan. A no-load variable annuity that lets you
build assets by deferring taxes on your investment earnings. You
can start with $2,500 or more.
Scudder Trust Company (an affiliate of the Adviser) is Trustee or
Custodian for some of these plans and is paid an annual fee for some
of the above retirement plans. For information about establishing a
Scudder No-Fee IRA, SEP-IRA, Profit Sharing Plan, Money Purchase
Pension Plan or a Scudder Horizon Plan, please call 1-800-225-2470.
For information about 401(k)s or 403(b)s please call 1-800-323-6105.
To effect transactions in existing IRA, SEP-IRA, Profit Sharing or
Pension Plan accounts, call 1-800-225-5163.
The variable annuity contract is provided by Charter National Life
Insurance Company (in New York State, Intramerica Life Insurance
Company [S 1802]). The contract is offered by Scudder Insurance
Agency, Inc. (in New York State, Nevada and Montana, Scudder Insurance
Agency of New York, Inc.). CNL, Inc. is the Principal Underwriter.
Scudder Horizon Plan is not available in all states.
Trustees and Officers
Daniel Pierce*
President and Trustee
Paul Bancroft III
Trustee; Venture Capitalist and Consultant
Thomas J. Devine
Trustee; Consultant
Douglas M. Loudon*
Vice President and Trustee
Wilson Nolen
Trustee; Consultant
Juris Padegs*
Trustee
Gordon Shillinglaw
Trustee; Professor Emeritus of Accounting, Columbia University
Graduate School of Business
Robert G. Stone, Jr.
Trustee; Chairman of the Board and Director, Kirby Corporation
Edmond D. Villani*
Trustee
Robert W. Lear
Honorary Trustee; Executive-in-Residence, Visiting Professor, Columbia
University Graduate School of Business
Edmund R. Swanberg*
Honorary Trustee
Peter Chin*
Vice President
Jerard K. Hartman*
Vice President
Thomas W. Joseph*
Vice President
David S. Lee*
Vice President
Roy C. McKay*
Vice President
Thomas F. McDonough*
Vice President and Secretary
Pamela A. McGrath*
Vice President and Treasurer
Edward J. O'Connell*
Vice President and Assistant Treasurer
Kathryn L. Quirk*
Vice President and Assistant Secretary
Richard W. Desmond*
Assistant Secretary
Coleen Downs Dinneen*
Assistant Secretary
*Scudder, Stevens & Clark, Inc.
Investment products and services
The Scudder Family of Funds
Money market
Scudder Cash Investment Trust
Scudder U.S. Treasury Money Fund
Tax free money market+
Scudder Tax Free Money Fund
Scudder California Tax Free Money Fund*
Scudder New York Tax Free Money Fund*
Tax free+
Scudder California Tax Free Fund*
Scudder High Yield Tax Free Fund
Scudder Limited Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder Massachusetts Limited Term Tax Free Fund*
Scudder Massachusetts Tax Free Fund*
Scudder Medium Term Tax Free Fund
Scudder New York Tax Free Fund*
Scudder Ohio Tax Free Fund*
Scudder Pennsylvania Tax Free Fund*
Income
Scudder Emerging Markets Income Fund
Scudder GNMA Fund
Scudder Income Fund
Scudder International Bond Fund
Scudder Short Term Bond Fund
Scudder Short Term Global Income Fund
Scudder Zero Coupon 2000 Fund
Growth and Income
Scudder Balanced Fund
Scudder Growth and Income Fund
Growth
Scudder Capital Growth Fund
Scudder Development Fund
Scudder Global Fund
Scudder Global Small Company Fund
Scudder Gold Fund
Scudder Greater Europe Growth Fund
Scudder International Fund
Scudder Latin America Fund
Scudder Pacific Opportunities Fund
Scudder Quality Growth Fund
Scudder Small Company Value Fund
Scudder Value Fund
The Japan Fund
----------------------------------------------------------------------
Retirement Plans and Tax-Advantaged Investments
IRAs
Keogh Plans
Scudder Horizon Plan*+++ (a variable annuity)
401(k) Plans
403(b) Plans
SEP-IRAs
Profit Sharing and Money Purchase Pension Plans
----------------------------------------------------------------------
Closed-end Funds#
The Argentina Fund, Inc.
The Brazil Fund, Inc.
The First Iberian Fund, Inc.
The Korea Fund, Inc.
The Latin America Dollar Income Fund, Inc.
Montgomery Street Income Securities, Inc.
Scudder New Asia Fund, Inc.
Scudder New Europe Fund, Inc.
Scudder World Income Opportunities Fund, Inc.
----------------------------------------------------------------------
Institutional Cash Management
Scudder Institutional Fund, Inc.
Scudder Fund, Inc.
Scudder Treasurers Trust(tm)++
----------------------------------------------------------------------
For complete information on any of the above Scudder funds, including
management fees and expenses, call or write for a free prospectus.
Read it carefully before you invest or send money. +A portion of the
income from the tax-free funds may be subject to federal, state and
local taxes. *Not available in all states. +++A no-load variable
annuity contract provided by Charter National Life Insurance Company
and its affiliate, offered by Scudder's insurance agencies,
1-800-225-2470. #These funds, advised by Scudder, Stevens & Clark,
Inc., are traded on various stock exchanges. ++For information on
Scudder Treasurers Trust(tm), an institutional cash management service
that utilizes certain portfolios of Scudder Fund, Inc. ($100,000
minimum), call: 1-800-541-7703.
How to contact Scudder
Account Service and Information:
For existing account service and transactions
Scudder Investor Relations
1-800-225-5163
For personalized information about your Scudder accounts;
exchanges and redemptions; or information on any Scudder fund
Scudder Automated Information Line (SAIL)
1-800-343-2890
Please address all correspondence to:
The Scudder Funds
P.O. Box 2291
Boston, Massachusetts
02107-2291
Investment Information:
To receive information about the Scudder funds, for additional
applications and prospectuses, or for investment questions
Scudder Investor Relations
1-800-225-2470
For establishing 401(k) and 403(b) plans
Scudder Defined Contribution Services
1-800-323-6105
Or Stop by a Scudder Funds Center :
Many shareholders enjoy the personal, one-on-one service of the
Scudder Funds Centers. Check for a Funds Center near you -- they
can be found in the following cities:
Boca Raton
Boston
Chicago
Cincinnati
Los Angeles
New York
Portland, OR
San Diego
San Francisco
Scottsdale
For information on Scudder Treasurers Trust(tm), an institutional cash
management service for corporations, non-profit organizations and
trusts which utilizes certain portfolios of Scudder Fund, Inc.*
($100,000 minimum), call: 1-800-541-7703.
For information on Scudder Institutional Funds*, funds designed to
meet the broad investment management and service needs of banks and
other institutions, call: 1-800-854-8525.
Scudder Investor Relations and Scudder Funds Centers are services
provided through Scudder Investor Services, Inc., Distributor.
* Contact Scudder Investor Services, Inc., Distributor, to receive a
prospectus with more complete information, including management fees
and expenses. Please read it carefully before you invest or send
money.
----------------------------------------------------------------------
