This combined prospectus sets forth concisely the information a prospective
retirement plan investor should know before investing in the following
funds: Scudder Global Fund, Scudder International Bond Fund, Scudder
International Fund and Scudder Global Small Company Fund. Please retain it
for future reference.
If you require more detailed information, Statements of Additional
Information dated November 1, 1994 for Scudder Global Fund and Scudder
International Bond Fund, August 1, 1994 for Scudder International Fund and
March 1, 1995 for Scudder Global Small Company Fund, 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 Statements, which are incorporated by reference into
this prospectus, have been filed with the Securities and Exchange
Commission.
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.
Contents--see page 7.
Scudder Global Fund
November 1, 1994
Scudder International Bond Fund
November 1, 1994
Scudder International Fund
August 1, 1994 As Revised November 1, 1994
Scudder Global Small Company Fund
March 1, 1995
Retirement Plan Prospectus
Four pure no-load(tm) mutual funds offering a broad range of investment
objectives that can be used in your Retirement Plan.
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 funds. By reviewing this table and those
in other mutual funds' prospectuses, you can compare each 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 a Fund for various transactions.
Scudder
Global
Scudder Scudder Scudder Small
Global International International Company
Fund Bond Fund Fund Fund
------- ---------- ----------- ------
Sales commissions to purchase NONE NONE NONE NONE
shares (sales load)
Sales commissions to purchase NONE NONE NONE NONE
shares (sales load)
Commissions to reinvest NONE NONE NONE NONE
dividends
Distribution fees* NONE NONE NONE NONE
Fees to exchange shares NONE NONE NONE NONE
2) Annual Fund operating expenses: Expenses paid by a Fund before it
distributes its net investment income, expressed as a percentage of
the Fund's average daily net assets for the fiscal year ended June 30,
1994 for Scudder Global Fund and Scudder International Bond Fund,
March 31, 1994 for Scudder International Fund and October 31, 1994 for
Scudder Global Small Company Fund.
Investment management fee 0.98%** 0.84%+ 0.85%++ 1.10%
12b-1 fees NONE NONE NONE NONE
Other expenses 0.47% 0.44% 0.36% 0.66%
------- ------ ------ ------
Total Fund operating expenses 1.45%** 1.28%+ 1.21%++ 1.76%+++
======= ====== ======== ========
Example
Based on the 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 each Fund before it
distributes its net investment income to shareholders. (As noted above, the
Funds have no redemption fees of any kind.)
One year $15 $13 $12 $18
Three years 46 41 38 55
Five years 79 70 66 95
Ten years 174 155 146 207
See "Fund organization--Investment adviser" for further information about
the investment management fees. 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.
* Please refer to "Transaction information--Tax information."
** These fees have been restated to reflect the fees which would have
been payable for the fiscal year ended June 30, 1994 under the
Investment Management Agreement dated September 7, 1993.
+ These fees have been restated to reflect the fees which would have
been payable for the fiscal year ended June 30, 1994 under the
Investment Management Agreement dated September 8, 1994. If the
Adviser had not agreed to maintain the Fund's total annualized
expenses at not more than 1.25% of average daily net assets from July
1, 1993 to January 1, 1994, the total annualized expenses would have
been 1.29% (of which 0.85% would have consisted of investment
management fees) for the year ended June 30, 1994.
++ These fees do not reflect the fees which would have been payable for
the fiscal year ended March 31, 1994 under the Investment Management
Agreement dated September 8, 1994. Had this Investment Management
Agreement been in place, the total annualized expenses of the Fund
would have been 1.20% (of which 0.84% would have consisted of
investment management fees) for the fiscal year.
+++ From the period November 1, 1993 through February 28, 1994, the
Adviser maintained expenses of the Fund at 1.50% of average daily net
assets. Had this expense maintenance not been in place, the total
expenses of the Fund would have been 1.76% (of which 1.10% would have
consisted of investment management fees) for the fiscal year ended
October 31, 1994.
Financial highlights
Scudder Global Fund
The following table includes selected data for a share outstanding
throughout each period and other performance information derived from the
audited financial statements.
If you would like more detailed information concerning the Fund's
performance, a complete portfolio listing and audited financial statements
are available in the Fund's Annual Report dated June 30, 1994 and may be
obtained without charge by writing or calling Scudder Investor Services,
Inc.
<TABLE>
<CAPTION>
For the
Period July
23, 1986
(commencement
of
Years Ended June 30, operations)
--------- --------- --------- --------- --------- --------- --------- to June 30,
1994 (d) 1993 1992 1991 1990 1989 1988 1987
--------- --------- --------- --------- --------- --------- --------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, $21.63 $19.56 $18.06 $20.36 $17.64 $14.47 $15.42 $12.00
beginning of ------ ------ ------ ------ ------ ------ ------ ------
period
Income from
investment
operations:
Net investment .23 .15 .19 .40 .19 .19 .18 .05
income
Net realized and 2.57 2.42 2.28 (1.50) 3.28 3.20 (.82) 3.37
unrealized gain ------ ------ ------ ------ ------ ------ ------ ------
(loss) on
investment
transactions
Total from 2.80 2.57 2.47 (1.10) 3.47 3.39 (.64) 3.42
investment ------ ------ ------ ------ ------ ------ ------ ------
operations
Less distributions
from:
Net investment (.24) (.16) (.31) (.37) (.20) (.14) (.06) _
income
Net realized gains (.26) (.34) (.66) (.83) (.55) (.08) (.25) _
on investment ------ ------ ------ ------ ------ ------ ------ ------
transactions
Total (.50) (.50) (.97) (1.20) (.75) (.22) (.31) _
distributions ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, $23.93 $21.63 $19.56 $18.06 $20.36 $17.64 $14.47 $15.42
end of period ====== ====== ====== ====== ====== ====== ====== ======
Total Return (%) 12.99 13.45 14.09 (5.20) 20.00 23.90 (4.45) 28.50**
Ratios and
Supplemental Data
Net assets, end of 1,096 577 371 268 257 91 81 102
period ($
millions)
Ratio of operating 1.45 1.48 1.59 1.70 1.81 1.98 1.71(b) 1.84*(a)
expenses, net to
average daily net
assets (%)
Ratio of net .97 .90 1.09 2.21 1.77 1.22 1.23 .63*
investment income
to average daily
net assets (%)
Portfolio turnover 59.7 64.9 44.6 85.0(c) 38.3 30.7 53.8 32.2*
rate (%)
<FN>
(a)The Adviser did not impose all of its management fee during the period July
23, 1986 (commencement of operations) to December 31, 1986, amounting to
$.01 per share.
(b)The Adviser absorbed a portion of the Fund's expenses exclusive of management
fees, amounting to $.03 per share.
(c)The portfolio turnover rate on equity securities and debt securities was
62.7% and 174.4%, respectively, based on average monthly equity holdings
and average monthly debt holdings.
(d)Per share amounts have been calculated using weighted average shares
outstanding.
* Annualized
** Not Annualized
</FN>
</TABLE>
Financial highlights
Scudder International Bond Fund
The following table includes selected data for a share outstanding
throughout each period and other performance information derived from the
audited financial statements.
If you would like more detailed information concerning the Fund's
performance, a complete portfolio listing and audited financial statements
are available in the Fund's Annual Report dated June 30, 1994 and may be
obtained without charge by writing or calling Scudder Investor Services,
Inc.
<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 6, 1988
(COMMENCEMENT
YEARS ENDED JUNE 30, OF OPERATIONS) TO
------------------------------------------------ JUNE 30,
1994(b) 1993 1992 1991 1990 1989
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . $13.57 $13.68 $12.35 $12.08 $11.27 $12.00
------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income (a) . . . . . . .92 1.03 1.08 1.21 1.10 1.00
Net realized and unrealized gain (loss)
on investment transactions (c) . . . (1.22) .52 2.15 .56 .80 (.73)
------ ------ ------ ------ ------ ------
Total from investment operations . . . (.30) 1.55 3.23 1.77 1.90 .27
------ ------ ------ ------ ------ ------
Less distributions:
From net investment income . . . . . (.91) (1.04) (1.09) (1.21) (1.09) (1.00)
From net realized gains on investment
transactions . . . . . . . . . . . . -- (.62) (.81) (.29) -- --
In excess of net realized gains on
investment transactions . . . . . . (.39) -- -- -- -- --
------ ------ ------ ------ ------ ------
Total distributions . . . . . . . . . . (1.30) (1.66) (1.90) (1.50) (1.09) (1.00)
------ ------ ------ ------ ------ ------
Net asset value, end of period . . . . $11.97 $13.57 $13.68 $12.35 $12.08 $11.27
====== ====== ====== ====== ====== ======
TOTAL RETURN (%) . . . . . . . . . . . (2.83) 12.24 28.25 14.88 17.59 2.16**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period ($ millions). 1,231 1,017 542 144 73 13
Ratio of operating expenses, net to
average net assets (%) (a) . . . . . 1.27 1.25 1.25 1.25 1.25 1.00*
Ratio of net investment income to average
net assets (%) . . . . . . . . . . . 6.86 7.69 8.31 9.48 9.57 8.58*
Portfolio turnover rate (%) . . . . . . 232.9 249.7 147.9 260.1 215.6 103.8*
(a) Reflects a per share amount of
expenses, exclusive of management
fees, reimbursed by the Adviser of. -- -- -- -- -- $.39
Reflects a per share amount of
management fee not imposed by the
Adviser of . . . . . . . . . . . . -- $.02 $.04 $.06 $.10 $.10
Operating expense ratio including
expenses reimbursed, management
fee and other expenses not
imposed (%) . . . . . . . . . . . 1.29 1.37 1.57 1.75 2.51 5.59*
<FN>
(b) Per share amounts have been calculated using weighted average shares outstanding.
(c) Includes exchange gain (loss) of $.01, $.01 and ($.02) for the periods ended June 30, 1991, 1990
and 1989, previously included in net investment income.
* Annualized
** Not annualized
</FN>
</TABLE>
Financial highlights
Scudder International Fund
The following table includes selected data for a share outstanding
throughout each period (a) and other performance information derived from
the audited financial statements.
If you would like more detailed information concerning the Fund's
performance, a complete portfolio listing and audited financial statements
are available in the Fund's Annual Report dated March 31, 1994 and may be
obtained without charge by writing or calling Scudder Investor Services,
Inc.
<TABLE>
<CAPTION>
YEARS ENDED MARCH 31,
-----------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period . . . . . . . . . . $35.69 $34.36 $34.69 $37.00 $34.79 $33.43 $44.05 $36.93 $23.03 $24.29
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income (c) . . . . . . . .31 .38 .44 .80 .49 .40 .45 .47(b) .74 .51
Net realized and unrealized
gain (loss) on investment
transactions . . . . . . . . . . . . . 7.74 2.64 (.37) (.39) 5.30 4.15 (.86) 13.07 13.70 (1.09)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations . . . . 8.05 3.02 .07 .41 5.79 4.55 (.41) 13.54 14.44 (.58)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Less distributions:
From net investment income . . . . . . (.63) (.83) -- (.74) (.43) (.13) (.82) (.49) (.41) (.10)
In excess of net investment income . . . (.06) -- -- -- -- -- -- -- -- --
From net realized gains on
investment transactions . . . . . . . (.09) (.86) (.40) (1.98) (3.15) (3.06) (9.39) (5.93) (.13) (.58)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total distributions . . . . . . . . . . . (.78) (1.69) (.40) (2.72) (3.58) (3.19) (10.21) (6.42) (.54) (.68)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period . . . . . $42.96 $35.69 $34.36 $34.69 $37.00 $34.79 $33.43 $44.05 $36.93 $23.03
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (%) . . . . . . . . . . . . 22.69 9.12 .18 1.46 17.08 14.34 (.47) 40.18 64.17 (2.40)
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
($ millions) . . . . . . . . . . . . . 2,198 1,180 933 929 783 550 559 791 597 223
Ratio of operating expenses to
average net assets (%) (c) . . . . . . 1.21 1.26 1.30 1.24 1.18 1.22 1.21 1.09(b) .99 1.04
Ratio of net investment income to
average net assets (%) . . . . . . . . .75 1.13 1.25 2.22 1.33 1.20 1.16 1.19 2.60 2.34
Portfolio turnover rate (%) . . . . . . . 39.9 29.2 50.4 70.1 49.4 48.3 54.8 66.5 36.0 19.5
<FN>
(a) Based on monthly average shares outstanding during the period.
(b) The Adviser did not impose a portion of its management fee amounting to $.004 per share.
(c) Interest expense for the years ended March 31, 1992, 1991, 1990, 1989, 1988 and 1987 amounted to $.003, $.001, $.001,
$.001, $.015, and $.005 per share, and the related ratio of interest expense to average net assets was .008%, .003%,
.002%, .004%, .04%, and .01%, respectively.
</FN>
</TABLE>
Financial highlights
Scudder Global Small Company Fund
The following table includes selected data for a share outstanding
throughout each period and other performance information derived from the
audited financial statements.
If you would like more detailed information concerning the Fund's
performance, a complete portfolio listing and audited financial statements
are available in the Fund's Annual Report dated October 31, 1994 and may be
obtained without charge by writing or calling Scudder Investor Services,
Inc.
<TABLE>
<CAPTION>
FOR THE PERIOD
SEPTEMBER 10, 1991
(COMMENCEMENT
YEARS ENDED OCTOBER 31, OF OPERATIONS)
---------------------------- TO OCTOBER 31,
1994 1993 1992 1991
---------------------------- ---------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . $16.14 $12.05 $11.92 $12.00
------ ------ ------ ------
Income from investment operations:
Net investment income (loss) (a) . . . . . . . . . . (.02) .04 .07 .01
Net realized and unrealized gain (loss) on investment
transactions . . . . . . . . . . . . . . . . . . . . .48 4.24 .08 (.09)
------ ------ ------ ------
Total from investment operations . . . . . . . . . . . .46 4.28 .15 (.08)
------ ------ ------ ------
Less distributions:
From net investment income . . . . . . . . . . . . . -- (.07) (.02) --
In excess of net investment income . . . . . . . . . (.18) -- -- --
From net realized gains on investment transactions . (.15) (.12) -- --
------ ------ ------ ------
Total distributions . . . . . . . . . . . . . . . . . . (.33) (.19) (.02) --
------ ------ ------ ------
Net asset value, end of period . . . . . . . . . . . . $16.27 $16.14 $12.05 $11.92
====== ====== ====== ======
TOTAL RETURN (%) . . . . . . . . . . . . . . . . . . . 2.80 36.04 1.26 (.67)*
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period ($ millions) . . . . . . . . 256 198 55 9
Ratio of operating expenses net, to average daily
net assets (%) (a) . . . . . . . . . . . . . . . . . 1.70 1.50 1.50 1.50**
Ratio of net investment income (loss) to average daily
net assets (%) . . . . . . . . . . . . . . . . . . . (.28) .53 .78 2.47**
Portfolio turnover rate (%) . . . . . . . . . . . . . . 45.8 54.6 23.4 --
<FN>
(a) Reflects a per share amount of expenses, exclusive of
management fees, reimbursed by the Adviser of . . $ -- $ -- $ -- $ .06
Reflects a per share amount of management fee not
imposed by the Adviser of . . . . . . . . . . . . $ .01 $ .04 $ .09 $ .01
Operating expense ratio including expenses
reimbursed, management fee and other expenses
not imposed (%) . . . . . . . . . . . . . . . . . 1.76 2.01 2.53 15.34**
* Not annualized
** Annualized
</FN>
</TABLE>
A message from Scudder's chairman
We're pleased that you are considering Scudder for your retirement plan.
There are many important reasons to invest in your future: to provide a
measure of freedom and security after you've stopped working, to maintain
your lifestyle, and to reduce dependence on Social Security and other
retirement benefits.
When you invest through an IRA, you reap the additional benefit of
tax-deferred earnings growth. Some IRA investors may also deduct all or
part of their yearly contributions from current taxes. And in keeping with
Scudder's pure no-load(tm) philosophy, Scudder IRAs offer you the added
advantage of charging no annual custodial fee.
This prospectus includes four Scudder international and global funds that
may be appropriate for investors with different retirement planning needs:
* Scudder Global Fund--seeks long-term growth of capital from global
investment markets.
* Scudder International Bond Fund--seeks income primarily by investing in
high-grade bonds denominated in foreign currencies, as well as
protection and possible enhancement of principal value by actively
managing currency, bond market and maturity exposure and by security
selection.
* Scudder International Fund--seeks long-term growth of capital primarily
from foreign equity securities.
* Scudder Global Small Company Fund--seeks above-average capital
appreciation over the long term by investing primarily in the equity
securities of small companies located throughout the world.
Scudder's family of 36 pure no-load(tm) mutual funds is designed to provide
investors with a complete investment program. If you have any questions
about our funds or retirement planning with Scudder, we encourage you to
call Scudder Investor Relations at 1-800-225-2470. We look forward to
welcoming you as a retirement plan investor.
/s/Daniel Pierce
Fund objectives
Scudder Global Fund
* For investors seeking long-term growth of capital from a
professionally managed portfolio consisting primarily of U.S. and
foreign common stocks issued by medium and large-sized companies.
Scudder International Bond Fund
* For investors seeking income primarily by investing in high-grade
bonds denominated in foreign currencies.
Scudder International Fund
* For investors seeking investment opportunity and diversification
through an actively managed portfolio of foreign securities.
Scudder Global Small Company Fund
* For investors seeking above-average capital appreciation over the long
term by investing primarily in the equity securities of small
companies located throughout the world.
Contents
Introduction 8
Scudder Global Fund 8
Scudder International Bond Fund 9
Scudder International Fund 10
Scudder Global Small Company Fund 11
Special risk considerations 12
Additional information about policies and investments 13
Contributions, exchanges and distributions 14
Fund distribution and performance information 18
Fund organization 18
Transaction information 19
Shareholder benefits 22
Directors and Officers 24
Investment products and services 25
How to contact Scudder 26
Introduction
Scudder Global Fund, Scudder International Bond Fund, Scudder International
Fund and Scudder Global Small Company Fund (collectively, the "Funds"), are
mutual funds advised by Scudder, Stevens & Clark, Inc. (the "Adviser"). The
four Funds' prospectuses are presented together so you can understand their
important differences and decide which Fund or combination of Funds is most
suitable for your long-term retirement needs.
Each of these Funds may be appropriate for IRAs, 401(k)s and other
retirement plans. With an IRA, you can put aside up to $2,000 of earned
income each year until the year you turn age 70 1/2. Whether you have many
years until you retire or just a few, IRAs offer an immediate advantage:
tax-deferred earnings that compound free of current income taxes, nurturing
the growth of your retirement savings.
Investors will also benefit from the cost-savings and professional
management of a no-load mutual fund. Each Fund offers all the benefits of
the Scudder Family of Funds. Scudder, Stevens & Clark, Inc. has been
researching and managing investments since 1919 and offered America's first
no-load fund. It manages over $90 billion in assets, including 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.
Except as otherwise indicated, each Fund's investment objectives and
policies are not fundamental and may be changed without a vote of
shareholders. Shareholders will receive written notice of any changes in a
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 Funds' objectives will be met.
Scudder Global Fund
Investment objective and policies
Scudder Global Fund seeks long-term growth of capital through a diversified
portfolio of marketable securities, primarily equity securities, including
common stocks, preferred stocks and debt securities convertible into common
stocks. The Fund invests on a worldwide basis in equity securities of
companies which are incorporated in the U.S. or in foreign countries. It
also may invest in the debt securities of U.S. and foreign issuers. Income
is an incidental consideration.
Investments
The Fund invests in companies that the Adviser believes will benefit from
global economic trends, promising technologies or products and specific
country opportunities resulting from changing geopolitical, currency or
economic relationships. It is expected that investments will be spread
broadly around the world. The Fund will be invested usually in securities
of issuers located in at least three countries, one of which may be the
U.S. The Fund may be invested 100% in non-U.S. issues, and for temporary
defensive purposes may be invested 100% in U.S. issues, although under
normal circumstances it is expected that both foreign and U.S. investments
will be represented in the Fund's portfolio. It is expected that
investments will include companies of varying size as measured by assets,
sales or capitalization.
The Fund generally invests in equity securities of established companies
listed on U.S. or foreign securities exchanges but also may invest in
securities traded over-the-counter. It also may invest in debt securities
convertible into common stock, and convertible and nonconvertible preferred
stock, and fixed-income securities of governments, government agencies,
supranational agencies and companies when the Adviser believes the
potential for appreciation will equal or exceed that available from
investments in equity securities. These debt and fixed-income securities
will be predominantly investment-grade securities, that is, those rated
Aaa, Aa, A or Baa by Moody's Investors Service, Inc. ("Moody's") or AAA,
AA, A or BBB by Standard & Poor's ("S&P") or those of equivalent quality as
determined by the Adviser. The Fund may not invest more than 5% of its
total assets in debt securities rated Baa or below by Moody's, or BBB or
below by S&P or deemed by the Adviser to be of comparable quality (see
"Additional information about policies and investments--Risk factors").
The Fund may invest in zero coupon securities which pay no cash income and
are sold at substantial discounts from their value at maturity. When held
to maturity, their entire income, which consists of accretion of discount,
comes from the difference between the issue price and their value at
maturity. Fixed-income securities also may be held for temporary defensive
purposes when the Adviser believes market conditions so warrant and for
temporary investment. Similarly, the Fund may invest in cash equivalents
(including foreign money market instruments, such as bankers' acceptances,
certificates of deposit, commercial paper, short-term government and
corporate obligations and repurchase agreements) for temporary defensive
purposes and for liquidity. The Fund may invest in closed-end investment
companies holding foreign securities. The Fund may engage in strategic
transactions.
Scudder International Bond Fund
Investment objective and policies
Scudder International Bond Fund offers investors a convenient way to invest
in a managed portfolio of debt securities denominated in foreign
currencies. (In this prospectus, such securities are called "international"
securities.) The Fund's objective is to provide income primarily by
investing in a managed portfolio of high-grade international bonds. As a
secondary objective, the Fund seeks protection and possible enhancement of
principal value by actively managing currency, bond market and maturity
exposure and by security selection.
Investments
To achieve its objectives, the Fund will primarily invest in a managed
portfolio of high-grade international bonds that are denominated in foreign
currencies, including bonds denominated in the European Currency Unit
(ECU). Portfolio investments will be selected on the basis of, among other
things, yields, credit quality and the fundamental outlooks for currency
and interest rate trends in different parts of the globe, taking into
account the ability to hedge a degree of currency or local bond price risk.
The Fund will normally invest at least 65% of its total assets in bonds
denominated in foreign currencies.
The high-grade debt securities in which the Fund primarily invests will be
rated in one of the three highest rating categories of one of the major
U.S. rating services or, if not rated, considered to be of equivalent
quality in local currency terms by the Adviser. These securities are rated
AAA, AA or A by S&P or Aaa, Aa or A by Moody's.
The Fund may also purchase debt securities rated BBB, BB or B by S&P or
Baa, Ba or B by Moody's and unrated securities considered to be of
equivalent quality in local currency terms by the Adviser. The Fund will do
so to avail itself of the higher yields available with these securities,
but only to the extent that up to 15% of the Fund's total assets may be
invested in securities rated below BBB by S&P or Baa by Moody's. Securities
rated below investment-grade (i.e., below BBB by S&P or Baa by Moody's)
entail greater risks than investment-grade debt securities (see "Risk
factors").
During the year ended June 30, 1994, the average monthly dollar-weighted
market value of the bonds in the Fund's portfolio were as follows: 35.2%
rated Aaa, 45.1% Aa, 11.0% A, 2.1% Baa, 4.0% Ba and 2.6% B. The bonds are
rated by Moody's or S&P, or of equivalent quality as determined by the
Adviser.
The Fund's investments may include:
* Debt securities issued or guaranteed by a foreign national government,
its agencies, instrumentalities or political subdivisions
* Debt securities issued or guaranteed by supranational organizations
(e.g., European Investment Bank, Inter-American Development Bank or
the World Bank)
* Corporate debt securities
* Bank or bank holding company debt securities
* Other debt securities, including those convertible into common stock
The Fund may invest in zero coupon securities which pay no cash income and
are sold at substantial discounts from their value at maturity. When held
to maturity, their entire income, which consists of accretion of discount,
comes from the difference between the issue price and their value at
maturity.
The Fund may purchase securities which are not publicly offered. If such
securities are purchased, they may be subject to restrictions applicable to
restricted securities. Please see "Additional information about policies
and investments--Investment restrictions."
The Fund intends to select its investments from a number of country and
market sectors. It may substantially invest in issuers in one or more
countries and intends to have investments in securities of issuers from a
minimum of three different countries; however, the Fund may invest
substantially all of its assets in securities of issuers located in one
country. Under normal circumstances, the Fund will invest no more than 35%
of the value of its total assets in U.S. debt securities. The Fund may
engage in strategic transactions.
For temporary defensive or emergency purposes, however, the Fund may invest
without limit in U.S. debt securities, including short-term money market
securities. It is impossible to predict for how long such alternative
strategies will be utilized.
Special risk considerations
Total return from investment in the Fund will consist of income after
expenses, bond price gains (or losses) in terms of the local currency and
currency gains (or losses). For tax purposes, realized gains and losses on
currency are regarded as ordinary income and loss and could, under certain
circumstances, have an impact on distributions.
Since the Fund's investments are primarily denominated in foreign
currencies, exchange rates are likely to have a significant impact on total
Fund performance. For example, a fall in the U.S. dollar's value relative
to the Japanese yen will increase the U.S. dollar value of a Japanese bond
held in the portfolio, even though the price of that bond in yen terms
remains unchanged. Conversely, if the U.S. dollar rises in value relative
to the yen, the U.S. dollar value of a Japanese bond will fall. Investors
should be aware that exchange rate movements can be significant and endure
for long periods of time.
The Adviser attempts to control exchange rate and interest rate risks
through active portfolio management. The Adviser's techniques include
management of currency, bond market and maturity exposure and security
selection which will vary based on available yields and the Adviser's
outlook for the interest rate cycle in various countries and changes in
foreign currency exchange rates. In any of the markets in which the Fund
invests, longer maturity bonds tend to fluctuate more in price as interest
rates change than shorter-term instruments--again providing both opportunity
and risk.
Investors should be aware that investing in international bonds may involve
a higher degree of risk than investing in U.S. bonds.
Scudder International Fund
Investment objective and policies
Scudder International Fund seeks long-term growth of capital primarily
through a diversified portfolio of marketable foreign equity securities.
These securities are selected primarily to permit the Fund to participate
in non-United States companies and economies with prospects for growth. The
Fund invests in companies, wherever organized, which do business primarily
outside the United States. The Fund intends to diversify investments among
several countries and to have represented in the portfolio, in substantial
proportions, business activities in not less than three different
countries. The Fund does not intend to concentrate investments in any
particular industry.
Investments
The Fund generally invests in equity securities of established companies,
listed on foreign exchanges, which the Adviser believes have favorable
characteristics.
When the Adviser believes that it is appropriate to do so in order to
achieve the Fund's investment objective of long-term capital growth, the
Fund may invest up to 20% of its total assets in debt securities. Such debt
securities include debt securities of foreign governments, supranational
organizations and private issuers, including bonds denominated in the
European Currency Unit (ECU). Portfolio debt investments will be selected
on the basis of, among other things, yield, credit quality, and the
fundamental outlooks for currency and interest rate trends in different
parts of the globe, taking into account the ability to hedge a degree of
currency or local bond price risk. The Fund may purchase "investment-grade"
bonds, which are those rated Aaa, Aa, A or Baa by Moody's or AAA, AA, A or
BBB by S&P or, if unrated, judged by the Adviser to be of equivalent
quality. The Fund may also invest up to 5% of its total assets in debt
securities which are rated below investment-grade (see "Additional
information about policies and investments--Risk factors").
When the Adviser determines that exceptional conditions exist abroad, the
Fund may, for temporary defensive purposes, invest all or a portion of its
assets in Canadian or U.S. Government obligations or currencies, or
securities of companies incorporated in and having their principal
activities in Canada or the U.S.
Scudder Global Small Company Fund
Investment objectives and policies
Scudder Global Small Company Fund seeks above-average capital appreciation
over the long-term by investing primarily in the equity securities of small
companies located throughout the world. The Fund is designed for investors
looking for above-average appreciation potential (when compared with the
overall domestic stock market as reflected by Standard & Poor's 500
Composite Price Index) and the benefits of investing globally, but are
willing to accept above-average stock market risk, the impact of currency
fluctuation and little or no current income.
Investments in small companies
In pursuit of its objective, the Fund generally invests in small, rapidly
growing companies which offer the potential for above-average returns
relative to larger companies, yet are frequently overlooked and thus
undervalued by the market. The Fund has the flexibility to invest in any
region of the world. It can invest in companies based in emerging markets,
typically in the Far East, Latin America and Eastern Europe, as well as in
firms operating in developed economies, such as those of the United States,
Japan and Western Europe.
The Adviser invests the Fund's assets in companies it believes offer
above-average earnings, cash flow or asset growth potential. It also
invests in companies which may receive greater market recognition over
time. The Adviser believes that these factors offer significant opportunity
for long-term capital appreciation. The Adviser evaluates investments for
the Fund from both a macroeconomic and microeconomic perspective, using
fundamental analysis, including field research. The Adviser analyzes the
growth potential and relative value of possible investments. When
evaluating an individual company, the Adviser takes into consideration
numerous factors, including the depth and quality of management; a
company's product line, business strategy and competitive position;
research and development efforts; financial strength, including degree of
leverage; cost structure; revenue and earnings growth potential;
price-earnings ratios and other stock valuation measures. Secondarily, the
Adviser weighs the attractiveness of the country and region in which a
company is located.
While the Fund's Adviser believes that smaller, lesser-known companies can
offer greater growth potential than larger, more established firms, the
former also involve greater risk and price volatility. To help reduce risk,
the Fund expects, under usual market conditions, to diversify its portfolio
widely by company, industry and country. Under normal circumstances, the
Fund invests at least 65% of its total assets in the equity securities of
small issuers. The Fund intends to allocate investments among at least
three countries at all times, including the United States.
The Fund selects its portfolio investments primarily from companies whose
individual equity market capitalizations would place them (at the time of
purchase) in the same size range as companies in approximately the lowest
20% of market capitalization of companies that have equity securities
listed on a U.S. national securities exchange or traded in the NASDAQ
system. Based on this policy and recent U.S. share prices, the companies
held by the Fund typically will have individual equity market
capitalizations of between approximately $50 million and $1.4 billion
(although the Fund will be free to invest in smaller capitalization issues
that satisfy the Fund's size standard). Furthermore, at least 50% of the
assets represented by such companies will be in approximately the lowest
10% of market capitalization of U.S. equity securities as described above.
At current prices this lowest 10% equates to no more than $550 million in
market capitalization.
Because the Fund applies a U.S. size standard on a global basis, a small
company investment outside the U.S. might rank above the lowest 20% by
market capitalization in local markets and, in fact, might in some
countries rank among the largest companies in terms of capitalization.
The equity securities in which the Fund may invest consist of common
stocks, preferred stocks (either convertible or nonconvertible), rights and
warrants. These securities may be listed on the U.S. or foreign securities
exchanges or traded over-the-counter. For capital appreciation purposes,
the Fund may purchase notes, bonds, debentures, government securities and
zero coupon bonds (any of which may be convertible or nonconvertible). The
Fund may invest in foreign securities and American Depositary Receipts
which may be sponsored or unsponsored. The Fund may also invest in
closed-end investment companies holding foreign securities, and engage in
strategic transactions. For temporary defensive purposes, the Fund may,
during periods in which conditions in securities markets warrant, invest
without limit in cash and cash equivalents. The Fund will limit investments
in securities of issuers located in Eastern Europe to 5% of its total
assets. More information about investment techniques is provided under
"Additional information about policies and investments."
Special risk considerations
Global and international investing involves economic and political
considerations not typically found in U.S. markets. These considerations
include changes in exchange rates and exchange rate controls (which may
include suspension of the ability to transfer currency from a given
country), costs incurred in conversions between currencies, nonnegotiable
brokerage commissions, less publicly available information, different
accounting standards, lower trading volume and greater market volatility,
the difficulty of enforcing obligations in other countries, less securities
regulation, different tax provisions (including withholding on dividends
paid to the Fund), war, expropriation, political and social instability,
and diplomatic developments.
Further, the settlement period of securities transactions in foreign
markets may be longer than in domestic markets. These considerations
generally are more of a concern in developing countries. For example, the
possibility of revolution and the dependence on foreign economic assistance
may be greater in these countries than in developed countries. The Adviser
seeks to mitigate the risks associated with these considerations through
diversification and active professional management.
Each Fund is designed for long-term investors who can accept international
investment risk. Changes to the Funds' share price may have a low
correlation with movements in the U.S. markets. A Fund's share price will
reflect the movements of both the different stock and bond markets in which
it is invested and the currencies in which the investments are denominated;
the strength or weakness of the U.S. dollar against foreign currencies may
account for part of a Fund's investment performance. As with any long-term
investment, the value of shares when sold may be higher or lower than when
purchased. Because of the Funds' global investment policies and the
investment considerations discussed above, investment in shares of a Fund
should not be considered a complete investment program.
Purchases of foreign securities are usually made in foreign currencies and,
as a result, a Fund may incur currency conversion costs and may be affected
favorably or unfavorably by changes in the value of foreign currencies
against the U.S. dollar. Further, it may be more difficult for a Fund's
agents to keep currently informed about corporate actions which may affect
the prices of portfolio securities. Communications between the U.S. and
foreign countries may be less reliable than within the U.S., thus
increasing the risk of delayed settlements of portfolio transactions or
loss of certificates for portfolio securities. A Fund's ability and
decisions to purchase and sell portfolio securities may be affected by laws
or regulations relating to the convertibility and repatriation of assets.
Please see "Additional information about policies and investments--Risk
factors."
Additional information about policies and investments
Investment restrictions
Each Fund has adopted certain fundamental policies which may not be changed
without a vote of shareholders and which are designed to reduce the Funds'
investment risk.
Each Fund may not borrow money except as a temporary measure for
extraordinary or emergency purposes and, in the case of Scudder
International Bond Fund, except in connection with reverse repurchase
agreements. Each Fund may not make loans except through the lending of
portfolio securities, the purchase of debt securities or through repurchase
agreements.
In addition, as a matter of nonfundamental policy, each Fund may not invest
more than 10% of its net assets in securities which are not readily
marketable, in restricted securities or in repurchase agreements maturing
in more than seven days. Each Fund may not invest more than 5% of its
assets in restricted securities.
A complete description of these and other policies and restrictions is
contained under "Investment Restrictions" in each Fund's Statement of
Additional Information.
Scudder Global Small Company Fund may invest up to 35% of its total assets
in equity securities of companies which do not meet its small company
criteria and in debt securities if the Adviser determines that the capital
appreciation of debt securities is likely to exceed the capital
appreciation of equity securities. The Fund may purchase investment-grade
bonds, those rated Aaa, Aa, A or Baa by Moody's or AAA, AA, A or BBB by S&P
or, if unrated, of equivalent quality as determined by the Adviser. The
Fund may also invest up to 5% of its net assets in debt securities rated
below investment-grade (see "Risk factors").
Convertible securities
Scudder Global Fund and Scudder Global Small Company Fund may invest in
convertible securities which may offer higher income than the common stocks
into which they are convertible. 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.
When-issued securities
Scudder International Bond Fund may purchase securities on a when-issued or
forward delivery basis, for payment and delivery at a later date. The price
and yield are generally fixed on the date of commitment to purchase. During
the period between purchase and settlement, no interest accrues to the
Fund. At the time of settlement, the market value of the security may be
more or less than the purchase price.
Repurchase agreements
As a means of earning income for periods as short as overnight, each Fund
may enter into repurchase agreements with selected banks and
broker/dealers. Under a repurchase agreement, a Fund acquires securities,
subject to the seller's agreement to repurchase them at a specified time
and price.
Scudder International Bond Fund may also enter into repurchase commitments
for investment purposes for periods of 30 days or more. Such commitments
involve investment risk similar to that of debt securities in which the
Fund invests.
(Continued on page 15)
Contributions, exchanges and distributions
Opening an IRA
Make checks payable to "Scudder Trust Company."
Minimum initial investment: $500
A $2,000 contribution gives you the maximum advantage.
* By Mail
Send your completed and signed IRA Application, indicating "New
IRA" and send a check in the enclosed business reply envelope
by regular mail to:
Scudder Investor Services, Inc.
P.O. Box 2291
Boston, MA
02107-2291
or
by express, registered, or certified mail to:
Scudder Investor Services, Inc.
1099 Hingham Street
Rockland, MA
02370-1052
* 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 How to contact Scudder.
IRA Transfers
If you've reached age 70 1/2, you must take your required minimum
distribution for the year before you complete the transfer.
Send your completed IRA Application and Transfer Request to one
of the addresses above. We'll take care of everything for you.
IRA Rollovers
Make checks payable to "Scudder Trust Company."
If you've reached age 70 1/2, you must take your required minimum
distribution for the year before you complete the rollover.
Send your completed and signed IRA Application, indicating
"IRA-to-IRA Rollover" and send a check in the enclosed business
reply envelope for your rollover amount to one of the addresses
above.
Direct IRA Rollovers
If you've reached age 70 1/2, you must take your required minimum
distribution for the year before you complete the rollover.
Send your completed and signed IRA Application, indicating
"Rollover from Employer Sponsored Plan" and send a check in the
enclosed business reply envelope for your rollover amount to one
of the addresses above.
If a check is not received with your application, an IRA account will
be established in your name, and you will be sent confirmation and
instructions for sending the proceeds from your plan.
Exchanging Shares
Minimum investments: $500 to establish a new account; $50 to exchange
among existing IRA accounts
* By Telephone
To speak with a Scudder Investor Relations representative, 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).
Distributions
Call 1-800-225-5163 for information and to request the appropriate
distribution form. The form will allow you to elect your distributions
in a lump sum or in installment payments. Please see "Transaction
information--Tax information."
(Continued from page 13)
Special situation securities
From time to time, Scudder Global Small Company Fund may invest in equity
or debt securities issued by companies that are determined by the Adviser
to possess "special situation" characteristics. In general, a special
situation company is a company whose securities are expected to increase in
value solely by reason of a development particularly or uniquely applicable
to the company. Developments that may create special situations include,
among others, a liquidation, reorganization, recapitalization or merger,
material litigation, technological breakthrough and new management or
management policies. The principal risk associated with investments in
special situation companies is that the anticipated development thought to
create the special situation may not occur and the investments therefore
may not appreciate in value or may decline in value.
Dollar roll transactions
Scudder International Bond Fund may enter into dollar roll transactions
with selected banks and broker/dealers. Dollar roll transactions are
treated as reverse repurchase agreements for purposes of the Fund's
borrowing restrictions and consist of the sale by the Fund of mortgage-
backed securities, together with a commitment to purchase similar, but not
identical, securities at a future date at the same price. In addition, the
Fund is paid a fee as consideration for entering into the commitment to
purchase. Dollar rolls may be renewed after cash settlement and initially
may involve only a firm commitment agreement by the Fund to buy the
securities.
Indexed securities
Scudder International Bond Fund may invest in indexed securities, the value
of which is linked to currencies, interest rates, commodities, indices or
other financial indicators ("reference instruments"). The interest rate or
(unlike most fixed-income securities) the principal amount payable at
maturity of an indexed security may be increased or decreased, depending on
changes in the value of the reference instrument.
Short-term investments
To protect against adverse movements of interest rates and for liquidity,
Scudder International Bond Fund may purchase short-term obligations
denominated in U.S. and foreign currencies such as, but not limited to,
bank deposits, bankers' acceptances, certificates of deposit, commercial
paper, short-term government, government agency, supranational agency and
corporate obligations, and repurchase agreements.
Strategic Transactions and derivatives
Each of the Funds may, but is not required to, utilize various other
investment strategies as described below to hedge various market risks
(such as interest rates, currency exchange rates, and broad or specific
equity or fixed-income market movements), to manage the effective maturity
or duration of fixed-income securities in each Fund's portfolio or to
enhance potential 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, each Fund may
purchase and sell exchange-listed and over-the-counter put and call options
on securities, equity and fixed-income indices and other financial
instruments, purchase and sell financial futures contracts and options
thereon, enter into various interest rate transactions such as swaps, caps,
floors or collars, and enter into various currency transactions such as
currency forward contracts, currency futures contracts, currency swaps or
options on currencies or currency futures (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 each Fund's portfolio resulting from securities markets or
currency exchange rate fluctuations, to protect the Funds' unrealized gains
in the value of their portfolio securities, to facilitate the sale of such
securities for investment purposes, to manage the effective maturity or
duration of fixed-income securities in the Funds' portfolio, 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 Funds' 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 Funds to utilize
these Strategic Transactions successfully will depend on the Adviser's
ability to predict pertinent market movements, which cannot be assured.
Each 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
Each 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 a Fund may use from time to time.
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.
Debt securities. Scudder Global Fund may invest no more than 5% of its
total assets in debt securities rated BBB or Baa or below or in unrated
securities. Scudder International Fund and Scudder Global Small Company
Fund may invest no more than 5% of their total assets in debt securities
rated below investment-grade. Scudder Global Fund, Scudder International
Fund and Scudder Global Small Company Fund may invest in securities which
are rated as low as C by Moody's or D by S&P at the time of purchase.
Securities rated D may be in default with respect to payment of principal
and interest.
Scudder International Bond Fund will invest no more than 15% of its total
net assets in debt securities rated below BBB or Baa, but no lower than B
by S&P and Moody's. Securities rated below BBB/Baa are commonly referred to
as "junk bonds" and involve greater price volatility and higher degrees of
speculation with respect to the payment of principal and interest than
higher quality fixed-income securities. The market prices of such
lower-rated debt securities may decline significantly in periods of general
economic difficulty. In addition, the trading market for these securities
is generally less liquid than for higher rated securities and the Fund may
have difficulty disposing of these securities at the time it wishes to do
so. The lack of a liquid secondary market for certain securities may also
make it more difficult for the Fund to obtain accurate market quotations
for purposes of valuing its portfolio and calculating its net asset value.
The lower the quality of such debt securities, the greater their risks
render them like equity securities. Such securities may be in default with
respect to payment of principal or interest. Also, longer maturity bonds
tend to fluctuate more in price as interest rates change than do short-term
bonds, providing both opportunity and risk.
Non-diversified investment company. As a non-diversified investment
company, Scudder International Bond Fund may invest a greater proportion of
its assets in the securities of a smaller number of issuers and therefore
may be subject to greater market and credit risk than a more broadly
diversified portfolio.
Zero coupon securities. Zero coupon securities are subject to greater
market value fluctuations from changing interest rates than debt
obligations of comparable maturities which make current cash distributions
of interest.
Repurchase agreements. If the seller under a repurchase agreement becomes
insolvent, a Fund's right to dispose of the securities may be restricted.
In the event of the commencement of bankruptcy or insolvency proceedings of
the seller of the securities before repurchase of the securities under a
repurchase agreement, a Fund may encounter delay and incur costs, including
a decline in the value of securities, before being able to sell the
securities.
Indexed securities. Indexed securities may be positively or negatively
indexed, so that appreciation of the reference instrument may produce an
increase or a decrease in the interest rate or value of maturity of the
security. In addition, the change in the interest rate or value at maturity
of the security may be some multiple of the change in the value of the
reference instrument. Thus, in addition to the credit risk of the
security's issuer, each Fund will bear the market risk of the reference
instrument.
Dollar roll transactions. If the broker/dealer to whom a Fund sells the
securities underlying a dollar roll transaction becomes insolvent, the
Fund's right to purchase or repurchase the securities may be restricted;
the value of the securities may change adversely over the term of the
dollar roll; the securities that the Fund is required to repurchase may be
worth less than securities that the Fund originally held, and the return
earned by the Fund with the proceeds of a dollar roll may not exceed
transaction costs.
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 a 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 a Fund can realize on its
investments or cause a Fund to hold a security it might otherwise sell. The
use of currency transactions can result in a Fund incurring losses as a
result of a number of factors including the imposition of exchange
controls, suspension of settlements or the inability to deliver or receive
a specified currency. 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 a Fund creates the possibility that losses on
the hedging instrument may be greater than gains in the value of a 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, a 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
Funds may use and some of their risks are described more fully in each
Fund's respective Statement of Additional Information.
Fund distribution and performance information
Dividends and capital gains distributions
Each Fund intends to distribute net realized capital gains after
utilization of capital gain/loss carryforwards, if any, and in the case of
Scudder Global Fund, Scudder International Fund and Scudder Global Small
Company Fund, distribute any dividends from its net investment income, in
November or December to prevent application of a federal excise tax,
although an additional distribution may be made if necessary. Scudder
International Bond Fund's dividends from ordinary income are declared daily
and distributed monthly. All distributions from shares held in an IRA will
automatically be reinvested in additional shares of the Fund.
Performance information
From time to time, quotations of a 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 a Fund for a
specified period. The "average annual total return" of a Fund is the
average annual compound rate of return of an investment in a Fund assuming
that the investment has been held for one year, five years, ten years and
life of Fund as of a stated ending date. "Cumulative total return"
represents the cumulative change in value of an investment in a Fund for
various periods. These calculations assume that all dividends and capital
gains distributions during the period were reinvested in shares of a Fund.
"Capital change" measures return from capital, including reinvestment of
any capital gains distributions but does not include the reinvestment of
dividends. The "yield" of Scudder International Bond Fund refers to income
generated by an investment in the Fund over a specified 30-day (one month)
period. Yield is expressed as an annualized percentage.
Performance for any of the Funds will vary based upon, among other things,
changes in market conditions and the level of a Fund's expenses.
Fund organization
Scudder Global Fund and Scudder Global Small Company Fund are diversified
series and Scudder International Bond Fund is a non-diversified series of
Scudder Global Fund, Inc. (the "Corporation"), an open-end, management
investment company registered under the Investment Company Act of 1940 (the
"1940 Act"). The Corporation was organized as a Maryland corporation in May
1986.
Scudder International Fund is a diversified series of Scudder International
Fund, Inc., an open-end, management investment company registered under the
1940 Act as a Maryland corporation whose predecessor was organized in 1953.
Each Fund's activities are supervised by each Corporation's Board of
Directors. Shareholders have one vote for each share held on matters on
which they are entitled to vote. The Funds are not required to and have no
current intention of holding annual shareholder meetings, although special
meetings may be called for purposes such as electing or removing Directors,
changing fundamental investment policies or approving an investment
management contract. Shareholders will be assisted in communicating with
other shareholders in connection with removing a Director as if Section
16(c) of the 1940 Act were applicable.
The prospectuses of the Funds are combined in this prospectus. Each Fund
offers only its own shares, yet it is possible that a Fund might become
liable for a misstatement regarding another Fund. The Directors of each
Corporation have considered this and approved the use of a combined
prospectus.
Investment adviser
Each Fund retains the investment management firm of Scudder, Stevens &
Clark, Inc., a Delaware corporation, to manage the daily investment and
business affairs subject to the policies established by each Corporation's
Board of Directors. The Directors have overall responsibility for the
management of the Funds under Maryland law.
Each Fund pays the Adviser an investment management fee. In each case, the
fee is graduated so that increases in a Fund's net assets may result in a
lower average fee rate and decreases in a Fund's net assets may result in a
higher average fee rate.
For the fiscal year ended June 30, 1994, the Adviser received an investment
management fee of 0.98% of the Scudder Global Fund average daily net assets
on an annual basis.
For Scudder International Bond Fund, the Adviser receives an investment
management fee for its services equal, on an annual basis, to 0.85% of the
first $1 billion of average daily net assets and 0.80% of such assets in
excess of $1 billion.
For the period July 1, 1993 to January 1, 1994, the Adviser had maintained
the total annualized expenses of Scudder International Bond Fund at 1.25%
and, accordingly, received an investment management fee of 0.85% of the
Fund's average daily net assets on an annual basis.
For Scudder International Fund, the Adviser receives an investment
management fee for these services equal, on an annual basis, to 0.90% of
the first $500 million of average daily net assets, 0.85% of the next $500
million of such assets, 0.80% of the next $1 billion of such assets and
0.75% of such assets in excess of $2 billion.
For the fiscal year ended March 31, 1994, the Adviser received an
investment management fee of 0.85% of the Scudder International Fund's
average daily net assets on an annual basis.
For Scudder Global Small Company Fund, the Adviser receives an investment
management fee equal to 1.10% of average daily net assets on an annual
basis.
For the period November 1, 1993 through February 28, 1994, the Adviser
maintained the annualized expenses of Scudder Global Small Company Fund at
1.50% and, accordingly, for the fiscal year ended October 31, 1994,
received an investment management fee of 1.03% of the Fund's average daily
net assets.
Each Fund's management fee is payable monthly, provided that each 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 a Fund and
unpaid.
The Funds' management fees are higher than those charged to most other
funds. However, management of the Funds involves analyzing companies,
markets and economies throughout the world and the management fees are not
necessarily higher than the fees charged to funds with similar investment
objectives and policies.
Because Scudder International Bond Fund's annual portfolio turnover rate
may continue to be over 100%, the Fund may have higher transaction costs
and shareholders may incur taxes on any realized capital gains.
All of the Funds' 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
345 Park Avenue, New York, New York.
Scudder Trust Company, a wholly-owned subsidiary of the Adviser, is the
custodian of the retirement plans and is paid an annual fee for some of
these plans.
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 Funds.
Underwriter
Scudder Investor Services, Inc., a wholly-owned subsidiary of the Adviser,
is the Funds' principal underwriter. Scudder Investor Services, Inc.
confirms, as agent, all purchases of shares of the Funds. Scudder Investor
Relations is a telephone information service provided by Scudder Investor
Services, Inc.
Transaction information
Making contributions
Contributions are executed at the next calculated net asset value per share
after the Funds' transfer agent in Boston receives the contribution request
in good order. Contributions are made in full and fractional shares. (See
"Share price.")
By check. If you make a contribution with a check that does not clear, your
contribution 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 make a contribution by check and request a distribution
within seven business days of the contribution, a Fund may hold
distribution proceeds until the contribution check has cleared, which may
take up to seven business days.
Exchange requests by telephone prior to the expiration of the seven-day
period will not be accepted.
By exchange. Your new account will have the same registration and address
as your existing account.
You can also make exchanges among your Scudder fund accounts on SAIL, the
Scudder Automated Information Line, by calling 1-800-343-2890.
Distributions
Distributions may be requested at any time and must be made in writing.
However, shareholders who have reached the age of 70 1/2 are required to
begin to receive distributions by April 1, following the year in which they
reached age 70 1/2. Written requests for distributions should be made in
advance of the required distribution date to ensure that the distribution
will be made before that time. Shareholders should specify whether they
would like the distribution in a lump sum or in installment payments. Each
Fund will make the distribution as soon as possible after receiving the
written request. Shareholders are also required to take minimum
distributions for each year following the year they turned 70 1/2 and these
distributions must be made by December 31 of each year. Call 1-800-225-5163
to request an IRA Distribution form.
Share price
Contributions, distributions and exchanges are made at net asset value. The
net asset value per share is determined as of the close of regular trading
on the New York Stock Exchange (the "Exchange"), normally 4 p.m. eastern
time, on each day the Exchange is open for trading. State Street Bank and
Trust Company determines the net asset value for Scudder Global Fund, and
is the Fund's custodian. Brown Brothers Harriman & Co. determines net asset
value for Scudder International Bond Fund, Scudder International Fund and
Scudder Global Small Company Fund, and is the Funds' custodian. 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.
Telephone transactions
Shareholders automatically receive the ability to exchange by telephone.
Each 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 a Fund does not follow such procedures, it may be liable
for losses due to unauthorized or fraudulent telephone instructions. Each
Fund will not be liable for acting upon instructions communicated by
telephone that it reasonably believes to be genuine.
Signature guarantees. For your protection and to prevent fraudulent
distributions, on written distribution requests we require an original
signature and an original signature guarantee for each person in whose name
the account is registered. (Each Fund reserves the right, however, to
require a signature guarantee for all distributions.) 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. For more information, please call 1-800-225-5163.
Processing time
All contribution and distribution requests must be received in good order
by the Funds' transfer agent in Boston. Requests received by the close of
regular trading on the Exchange are executed at the net asset value per
share calculated at the close of trading that day. Contribution and
distribution requests received after the close of regular trading on the
Exchange will be executed the following business day. Contributions
received before the close of regular trading on the Exchange will begin
earning income the next business day. Shares liquidated to pay a
distribution will earn income on the day on which the distribution request
is executed.
The Funds will normally send distribution proceeds within one business day
following the distribution request, but may take up to seven days (or
longer in the case of shares recently contributed by check).
Short-term trading
Contributions should be made for long-term investment purposes only. The
Funds and Scudder Investor Services, Inc. each reserve 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
a Fund's share price appears evident.
Tax information
Shareholders are eligible to make a regular IRA contribution for any tax
year in which they have "earned income." However, shareholders cannot make
a regular contribution for the calendar year in which they reach age 70 1/2
or for any later year.
Regular contributions for any tax year must be made during that tax year or
by April 15 of the next year. Rollover contributions or transfers to an IRA
may be made at any time even if a shareholder has reached the age of 70
1/2, but the minimum required distribution for the year must be taken
before a transfer or rollover.
Shareholders are allowed to transfer or roll over all or a part of an IRA
investment to another IRA without any tax liability. Shareholders may
transfer assets directly from one IRA trustee or custodian to another at
any time. Shareholders may also take proceeds from an IRA and roll them
over, within 60 days, into another IRA; however, only one rollover may be
made from a particular IRA during any 12-month period. If shareholders take
a distribution from an IRA and do not roll over all of the money received
within the 60-day rollover period, they will be subject to federal income
tax, and state and local taxes, if applicable, on any portion they keep. In
most cases, if shareholders are younger than 59 1/2, they will also be
subject to a 10% federal penalty on the amount not rolled over. In
addition, if they are to receive a distribution of all or any part of their
interest in an employer-maintained retirement plan, then they may roll over
all or a portion of the distribution into an IRA either directly from the
employer-maintained plan or within 60 days of the day received, unless the
distribution is a required minimum distribution or part of a series of
substantially equal payments made over a period of 10 years or more, or the
shareholders' life expectancy or the joint life expectancy of the
shareholders and their beneficiaries. Please note that distributions paid
directly from an employer plan will be subject to a 20% withholding
requirement unless they are required minimum distributions or payments made
over a period longer than 10 years of the life expectancy or the joint life
expectancy of the shareholders and their beneficiaries. Distributions
directly rolled over to an IRA are not subject to the 20% withholding. An
exchange from one Scudder fund to another in the same IRA does not result
in immediate taxable income to the IRA owner, however.
Social Security number
Be sure to complete the Social Security Number section of the IRA
application when you open an account. Each Fund reserves the right to
reject new account applications without a Social Security number. Each Fund
also reserves the right, following 30 days' notice, to distribute all
shares in accounts without a Social Security number. A shareholder may
avoid involuntary distribution by providing the Fund with a Social Security
number during the 30-day notice period.
Minimum balances
Shareholders should maintain an IRA share balance worth at least $500,
which amount may be changed by each Fund's Board of Directors. Each Fund
reserves the right, following 60 days' written notice to shareholders, to
distribute all shares in sub-minimum accounts, including accounts of new
investors, where a reduction in value has occurred due to a distribution or
exchange out of the account. This distribution may be subject to tax and
penalties. Reductions in value that result solely from market activity will
not trigger an involuntary distribution. Each Fund will mail the proceeds
of the distributed account to the shareholder. The shareholder may restore
the share balance to $500 or more during the 60-day notice period and must
maintain it at no lower than that minimum to avoid involuntary
distribution.
Third party transactions
If contributions and distributions 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
Each Fund reserves the right, if conditions exist which make cash payments
undesirable, to honor any request for distribution by making payment in
whole or in part in readily marketable securities chosen by each Fund and
valued as they are for purposes of computing each 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. Each
Fund has elected, however, to be governed by Rule 18f-1 under the 1940 Act
as a result of which the Fund is obligated to distribute 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 each 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
Each Fund is run 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 each
Fund's portfolio. They are supported by Scudder's large staff of
economists, research analysts, traders and other investment specialists who
work in Scudder's offices across the United States and abroad. Scudder
believes its team approach benefits Fund investors by bringing together
many disciplines and leveraging Scudder's extensive resources.
Scudder Global Fund. Lead Portfolio Manager William E. Holzer has had
day-to-day responsibility for Scudder Global Fund's worldwide strategy and
investment themes since its inception in 1986. Mr. Holzer, who has 20
years' experience in global investing, joined Scudder in 1980. Nicholas
Bratt, Portfolio Manager, directs Scudder's overall global equity
investment strategies. Mr. Bratt joined Scudder in 1976 and the team in
1993. Alice Ho, Portfolio Manager, joined the team in 1994 and is also
responsible for implementing the Fund's strategy. Ms. Ho, who joined
Scudder in 1986 as a member of the institutional and private investment
counsel areas, has worked as a portfolio manager since 1989.
Scudder International Bond Fund. Lead Portfolio Manager Lawrence Teitelbaum
assumed responsibility for the Fund's day-to-day management when he joined
Scudder in 1993, bringing more than 10 years of experience managing foreign
and domestic fixed-income assets. Adam M. Greshin, Portfolio Manager,
joined Scudder in 1986. Mr. Greshin has responsibility for researching,
analyzing and selecting international bonds for the Fund.
Scudder International Fund. Lead Portfolio Manager Carol L. Franklin joined
Scudder International Fund's portfolio management team in 1986 and has been
responsible for setting the Fund's investment strategy and overseeing
security selection for the Fund's portfolio since 1992. Ms. Franklin, who
has 17 years of experience in finance and investing, joined Scudder in
1981. Nicholas Bratt, Portfolio Manager, directs Scudder's overall global
equity investment strategies. Mr. Bratt joined Scudder and the team in
1976. Irene T. Cheng, Portfolio Manager, joined Scudder and the team in
1993. Ms. Cheng has been a portfolio manager since 1993 and has 10 years of
experience in finance and investing. Francisco S. Rodrigo III, Portfolio
Manager, joined Scudder and the team in 1994. Mr. Rodrigo has been involved
with investment in global and international stocks and bonds as a portfolio
manager and analyst since 1989. Joan Gregory, Portfolio Manager, focuses on
stock selection, a role she has played since she joined Scudder in 1992.
Ms. Gregory, who joined the team in 1994, has been involved with investment
in global and international stocks as an assistant portfolio manager since
1989.
Scudder Global Small Company Fund. Lead Portfolio Manager Gerald J. Moran
has set the Fund's investment strategy and overseen its daily operation
since the Fund was introduced in 1991. Mr. Moran joined Scudder's equity
research and management area in 1968 as an analyst and has focused on small
company stocks since 1982 and has been a portfolio manager since 1985.
Elizabeth Allan, Portfolio Manager, who joined the team in 1994,
concentrates on the Fund's Pacific Basin investments. Ms. Allan, who has
been a portfolio manager at Scudder since 1991, joined the firm in 1987 as
a member of the portfolio management team of a Scudder closed-end mutual
fund concentrating its investments in Asia. Carol L. Franklin, Portfolio
Manager, contributes expertise on the Fund's European investments, a role
she has filled since the Fund commenced operations. Ms. Franklin has worked
on international equity investing as a portfolio manager at Scudder since
1981. Joan Gregory, Portfolio Manager, joined the team in 1994 and focuses
on stock selection, a role she has played since she joined Scudder in 1992.
Ms. Gregory has been involved with investment in global and international
stocks as an assistant portfolio manager since 1989.
SAIL(tm)--Scudder Automated Information Line
For touchtone access to account information, prices and yields, or to
perform transactions in existing Scudder fund accounts, shareholders can
call Scudder's Automated Information Line (SAIL) at 1-800-343-2890.
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.
Shareholder statements
All of your Scudder IRA fund investments are reported on one convenient
quarterly statement. All of your statements should be retained to help you
keep track of account activity.
Shareholder reports
In addition to consolidated 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.
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.
Directors and Officers
Edmond D. Villani*
Chairman of the Board and Director
Nicholas Bratt*
President (2,3,4) and Director
William E. Holzer*
President (1); Vice President (3)
Paul Bancroft III
Director; Venture Capitalist and Consultant
Thomas J. Devine
Director; Consultant
William H. Gleysteen, Jr.
Director; President, The Japan Society, Inc.
William H. Luers
Director; President, The Metropolitan Museum of Art
Wilson Nolen
Director; Consultant (3)
Juris Padegs*
Director (3); Vice President and Assistant Secretary
Daniel Pierce*
Director; Vice President (1,2,4)
Gordon Shillinglaw
Director; Professor Emeritus of Accounting, Columbia University
Graduate School of Business (3)
Robert G. Stone, Jr.
Director; Chairman of the Board and Director, Kirby Corporation
Robert W. Lear
Honorary Director; Executive-in-Residence, Visiting Professor,
Columbia University Graduate School of Business
Carol L. Franklin*
Vice President (3,4)
Edmund B. Games, Jr.*
Vice President (3)
Jerard K. Hartman*
Vice President
Thomas W. Joseph*
Vice President
Douglas M. Loudon*
Vice President (1,2,4)
Gerald J. Moran*
Vice President (1,2,4)
Cornelia M. Small*
Vice President (1,2,4)
Lawrence Teitelbaum*
Vice President (1,2,4)
William F. Truscott*
Vice President (3)
Thomas F. McDonough*
Vice President and Secretary
Pamela A. McGrath*
Vice President and Treasurer
David S. Lee*
Vice President and Assistant Treasurer
Edward J. O'Connell*
Vice President and Assistant Treasurer
Kathryn L. Quirk*
Vice President and Assistant Secretary
Richard W. Desmond*
Assistant Secretary (3)
Coleen Downs Dinneen*
Assistant Secretary
(1) Scudder Global Fund
(2) Scudder International Bond Fund
(3) Scudder International Fund
(4) Scudder Global Small Company Fund
All funds unless otherwise indicated.
* 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
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 Value Fund
The Japan Fund
In addition to these taxable funds, Scudder offers a choice of tax free
funds which are best for non-IRAs.
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. *Not available in all states.
+++A no-load variable annuity contract provided by Charter National Life
Insurance Company and its affiliate, offered by Scudder's insurance
agencies, 1-800-225-2470. #These funds, advised by Scudder, Stevens &
Clark, Inc., are traded on various stock exchanges. ++For information on
Scudder Treasurers Trust(tm), an institutional cash management service that
utilizes certain portfolios of Scudder Fund, Inc. ($100,000 minimum), call:
1-800-541-7703.
How to contact Scudder
Account Service and Information:
For existing account service and transactions
Scudder Investor Relations
1-800-225-5163
For account updates, prices, yields, exchanges and redemptions
Scudder Automated Information Line (SAIL)
1-800-343-2890
Investment Information:
To receive information about the Scudder funds, for additional
applications and prospectuses, or for investment questions
Scudder Investor Relations
1-800-225-2470
For establishing 401(k) and 403(b) plans
Scudder Defined Contribution Services
1-800-323-6105
Please address all correspondence to:
The Scudder Funds
P.O. Box 2291
Boston, Massachusetts
02107-2291
Or Stop by a Scudder Funds Center:
Many shareholders enjoy the personal, one-on-one service of the
Scudder Funds Centers. Check for a Funds Center near you--they can be
found in the following cities:
Boca Raton
Boston
Chicago
Cincinnati
Los Angeles
New York
Portland, OR
San Diego
San Francisco
Scottsdale
For information on Scudder Treasurers Trust(tm), an institutional cash
management service for corporations, non-profit organizations and trusts
which utilizes certain portfolios of Scudder Fund, Inc.* ($100,000
minimum), call: 1-800-541-7703.
For information on Scudder Institutional Funds*, funds designed to meet the
broad investment management and service needs of banks and other
institutions, call: 1-800-854-8525.
Scudder Investor Relations and Scudder Funds Centers are services provided
through Scudder Investor Services, Inc., Distributor.
* Contact Scudder Investor Services, Inc., Distributor, to receive a
prospectus with more complete information, including management fees
and expenses. Please read it carefully before you invest or send
money.
