This combined prospectus sets forth concisely the information a prospective
investor should know before investing in the following open-end funds:
Scudder Global Fund and Scudder Global Small Company Fund, each a series of
Scudder Global Fund, Inc.; Scudder Greater Europe Growth Fund, Scudder
International Fund, Scudder Latin America Fund and Scudder Pacific
Opportunities Fund, each a series of Scudder International Fund, Inc.
Please retain it for future reference.
If you require more detailed information, Statements of Additional
Information dated March 1, 1995 for Scudder Global Small Company Fund,
Scudder Latin America Fund and Scudder Pacific Opportunities Fund; August
1, 1994 for Scudder International Fund; October 10, 1994 for Scudder
Greater Europe Growth Fund; and November 1, 1994 for Scudder Global 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 14.
Scudder Global Fund
- -------------------------
November 1, 1994
Scudder Global Small
Company Fund
- -------------------------
March 1, 1995
Scudder Greater Europe
Growth Fund
- -------------------------
October 10, 1994
As Revised March 1, 1995
Scudder International Fund
- -------------------------
August 1, 1994
As Revised November 1, 1994
Scudder Latin America
Fund
Scudder Pacific Opportunities Fund
- -------------------------
March 1, 1995
Six pure no-load(tm) (no sales charges) mutual funds offering a broad range
of worldwide equity opportunities in developed, newly industrialized and
developing countries.
Expense information
Scudder Global Fund
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 Global 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 load) NONE
Commissions to reinvest dividends NONE
Redemption fees NONE*
Fees to exchange shares NONE
2) Annual Fund operating expenses: 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 ended June 30,
1994.
Investment management fee 0.98%**
12b-1 fees NONE
Other expenses 0.47%
-----
Total Fund operating expenses 1.45%**
======
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 the Fund before it
distributes its net investment income to shareholders. (As noted above, the
Fund has no redemption fees of any kind.)
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$15 $46 $79 $174
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.
* 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--Redeeming shares."
** 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.
Expense information
Scudder Global Small Company Fund
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 Global Small Company 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 load) NONE
Commissions to reinvest dividends NONE
Redemption fees NONE*
Fees to exchange shares NONE
2) Annual Fund operating expenses: 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 ended October
31, 1994.
Investment management fee 1.10%
12b-1 fees NONE
Other expenses 0.66%
-----
Total Fund operating expenses 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 the Fund before it
distributes its net investment income to shareholders. (As noted above, the
Fund has no redemption fees of any kind.)
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$18 $55 $95 $207
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.
* 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--Redeeming Shares."
** 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.
Expense information
Scudder Greater Europe Growth Fund
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 Greater Europe Growth 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 load) NONE
Commissions to reinvest dividends NONE
Redemption fees NONE*
Fees to exchange shares NONE
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 0.00%**
12b-1 fees NONE
Other expenses 1.50%**
------
Total Fund operating expenses (after expense 1.50%**
maintenance) ======
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. (As noted
above, the Fund has no redemption fees of any kind.)
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.
* 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
--Redeeming shares."
** The Adviser has agreed to maintain the annualized expenses of the Fund
at not more than 1.50% of average daily net assets until February 29,
1996. If the Adviser had not agreed to maintain the Fund's expenses,
it is estimated that the total annualized expenses of the Fund would
amount to 2.80% (of which 1.00% would consist of investment management
fees) for the initial fiscal year.
Expense information
Scudder International Fund
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 International 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 load) NONE
Commissions to reinvest dividends NONE
Redemption fees NONE*
Fees to exchange shares NONE
2) Annual Fund operating expenses: 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 ended March
31, 1994.
Investment management fee 0.85%**
12b-1 fees NONE
Other expenses 0.36%
-----
Total Fund operating expenses 1.21%**
======
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 the Fund before it
distributes its net investment income to shareholders. (As noted above, the
Fund has no redemption fees of any kind.)
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$12 $38 $66 $146
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.
* 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
--Redeeming shares."
** 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.
Expense information
Scudder Latin America Fund
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 Latin America 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 load) NONE
Commissions to reinvest dividends NONE
Deferred sales charge NONE
Redemption fees payable to the Fund 2.00%*
Exchange fees payable to the Fund 2.00%*
2) Annual Fund operating expenses: (after state imposed expense
limitation) paid by the Fund before it distributed its net investment
income, expressed as a percentage of the Fund's average daily net
assets for the fiscal year ended October 31, 1994.
Investment management fee 1.21%**
12b-1 fees NONE
Other expenses 0.80%
-----
Total Fund operating expenses 2.01%**
======
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 the Fund before it
distributes its net investment income to shareholders.
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$20 $63 $108 $234
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 2% fee retained by the Fund which is imposed only on
redemptions or exchanges of shares held less than one year. 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."
** For the fiscal year ended October 31, 1994, the Adviser did not impose
a portion of its management fee. Without the state imposed expense
limitation, the total annualized expenses of the Fund would have been
2.05% (of which 1.25% would have consisted of investment management
fees) for the fiscal year.
Expense information
Scudder Pacific Opportunities Fund
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 Pacific Opportunities 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 load) NONE
Commissions to reinvest dividends NONE
Redemption fees NONE*
Fees to exchange shares NONE
2) Annual Fund operating expenses: Expenses paid by the Fund before it
distributed its net investment income, expressed as a percentage of
the Fund's average daily net assets for the fiscal year ended October
31, 1994.
Investment management fee 1.10%
12b-1 fees NONE
Other expenses 0.71%
-----
Total Fund operating expenses 1.81%
=====
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 the Fund before it
distributes its net investment income to shareholders. (As noted above, the
Fund has no redemption fees of any kind.)
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$18 $57 $98 $213
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.
* 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--Redeeming shares."
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
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
</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
</TABLE>
Financial Highlights
Scudder Greater Europe Growth Fund
The following table includes selected data for a share outstanding
throughout the 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
OCTOBER 10, 1994
(COMMENCEMENT OF
OPERATIONS) TO
OCTOBER 31, 1994
----------------
<S> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . $12.00
------
Income from investment operations:
Net investment income (a) . . . . . . . . . . . . . . . . . . . . . . . .01
Net realized and unrealized gain on investments transactions . . . . . .17
------
Total from investment operations . . . . . . . . . . . . . . . . . . . . . .18
------
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . $12.18
======
TOTAL RETURN (%) (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.50*
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period ($ millions) . . . . . . . . . . . . . . . . . 8
Ratio of operating expenses, net to average daily net assets (%) (a) . . 1.50**
Ratio of net investment income to average daily net assets (%) . . . . . 2.40**
Portfolio turnover rate (%) . . . . . . . . . . . . . . . . . . . . . . . --
<FN>
(a) Reflects a per share amount of expenses, exclusive of management
fees, reimbursed by the Adviser of . . . . . . . . . . . . . . . . . $ .01
Reflects a per share amount of management fee and other fees
not imposed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .02
Operating expense ratio including expenses reimbursed, management
fee and other expenses not imposed (%) . . . . . . . . . . . . . . . 11.46**
(b) Total return is higher due to maintenance of the Fund's expenses.
* Not annualized
** Annualized
</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.
</TABLE>
Financial Highlights
Scudder Latin America 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
December 8, 1992
Year (commencement
Ended of operations) to
October 31, 1994 October 31, 1993
---------------- -----------------
<S> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . $18.41 $12.00
------ ------
Income from investment operations:
Net investment income (loss) (a) . . . . . . . . . . . . . . . . (.03) .03
Net realized and unrealized gain on investment transactions . . 6.18 6.38
------ ------
Total from investment operations . . . . . . . . . . . . . . . . 6.15 6.41
------ ------
Less distributions:
In excess of net investment income . . . . . . . . . . . . . . . (.06) --
From net realized gains on investment transactions . . . . . . . (.06) --
------ ------
Total distributions . . . . . . . . . . . . . . . . . . . . . . . (.12) --
------ ------
Net asset value, end of period . . . . . . . . . . . . . . . . . $24.44 $18.41
====== ======
TOTAL RETURN (%) (b) . . . . . . . . . . . . . . . . . . . . . . 33.43 53.42(c)**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period ($ millions) . . . . . . . . . . . . . 809 261
Ratio of operating expenses, net to average daily net
assets (%) (a) . . . . . . . . . . . . . . . . . . . . . . . . 2.01 2.00*
Ratio of net investment income (loss) to average daily
net assets (%) . . . . . . . . . . . . . . . . . . . . . . . . (.20) .44*
Portfolio turnover rate (%). . . . . . . . . . . . . . . . . . . . 22.4 4.6*
<FN>
(a) Reflects a per share amount of management fee not imposed by
the Adviser of . . . . . . . . . . . . . . . . . . . . . . . $.01 $.04
Operating expense ratio including management fee not
imposed (%) . . . . . . . . . . . . . . . . . . . . . . . . 2.05 2.69*
(b) Total returns are higher due to maintenance of the Fund's expenses.
(c) Total return does not reflect the effect of the applicable redemption fees.
* Annualized
** Not annualized
</TABLE>
Financial Highlights
Scudder Pacific Opportunities 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
YEAR DECEMBER 8, 1992
ENDED (COMMENCEMENT
OCTOBER 31, OF OPERATIONS) TO
1994 OCTOBER 31, 1993
----------- -----------------
<S> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . $16.21 $12.00
------ ------
Income from investment operations:
Net investment income (a) . . . . . . . . . . . . . . . . . . . . . . .04 .04
Net realized and unrealized gain on investment transactions . . . . . 1.41 4.17
------ ------
Total from investment operations . . . . . . . . . . . . . . . . . . . 1.45 4.21
------ ------
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . (.08) --
Net realized gains on investment transactions . . . . . . . . . . . . (.01) --
------ ------
Total distributions . . . . . . . . . . . . . . . . . . . . . . . . . . (.09) --
------ ------
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $17.57 $16.21
====== ======
TOTAL RETURN (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.97 35.08**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period ($ millions) . . . . . . . . . . . . . . . . 499 270
Ratio of operating expenses, net to average daily net assets (%) (a) . 1.81 1.75*
Ratio of net investment income to average daily net assets (%) . . . . .28 1.41*
Portfolio turnover rate (%) . . . . . . . . . . . . . . . . . . . . . . 38.5 9.9*
<FN>
(a) Reflects a per share amount of management fee and other fees
not imposed by the Adviser of . . . . . . . . . . . . . . . . . -- .03
Operating expense ratio including expenses reimbursed, management
fee and other expenses not imposed (%) . . . . . . . . . . . . . -- 2.90*
* 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.
/s/Daniel Pierce
The Funds
Six pure no-load(tm) (no sales charges) mutual funds offering a broad range
of worldwide equity opportunities in developed, newly industrialized and
developing countries:
* Scudder Global Fund
* Scudder Global Small Company Fund
* Scudder Greater Europe Growth Fund
* Scudder International Fund
* Scudder Latin America Fund
* Scudder Pacific Opportunities Fund
Contents
Introduction 15
Scudder Global Fund 15
Scudder Global Small Company Fund 17
Scudder Greater Europe Growth Fund 19
Scudder International Fund 21
Scudder Latin America Fund 22
Purchases 24
Exchanges and redemptions 25
Scudder Pacific Opportunities Fund 26
Special risk considerations 28
Additional information about policies and investments 29
Distribution and performance information 36
Fund organization 37
Transaction information 39
Shareholder benefits 42
Directors and Officers 46
Investment products and services 47
How to contact Scudder Back cover
Introduction
Scudder Global Fund, Scudder Global Small Company Fund, Scudder Greater
Europe Growth Fund, Scudder International Fund, Scudder Latin America Fund
and Scudder Pacific Opportunities Fund (collectively, the "Funds"), are
mutual funds advised by Scudder, Stevens & Clark, Inc. (the "Adviser"). The
six 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 investment needs.
Each 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.
Except as otherwise indicated, each 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 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 current financial position and needs. There
can be no assurance that each Fund's objective 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 issued 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. In addition, the Fund may engage in
strategic transactions.
Why invest in the Fund?
The management of the Fund believes that there is substantial opportunity
for long-term capital growth from a professionally managed portfolio of
securities selected from the U.S. and foreign equity markets. This global
investment framework takes advantage of the investment opportunities
created by the global economy. The world has become highly integrated in
economic, industrial and financial terms. Companies increasingly operate
globally as they purchase raw materials, produce and sell their products
and raise capital. As a result, international trends such as movements in
currency and trading relationships are becoming more important to many
industries than purely domestic influences. To understand a company's
business, it is frequently more important to understand how it is linked to
the world economy than whether or not it is, for example, a U.S., French or
Swiss company. Just as a company takes a global perspective in deciding
where to operate, so too may an investor benefit from looking globally in
deciding which industries are growing, which producers are efficient and
which companies' shares are undervalued. The Fund affords the investor
access to opportunities wherever they arise, without being constrained by
the location of a company's headquarters or the trading market for its
shares.
The Fund is designed for investors seeking worldwide equity opportunities
in developed, newly industrialized and developing countries (some of these
developing countries are located in Latin America and Africa). Like
consumers who seek to buy a good product wherever it is made, the Fund
seeks to find investment opportunities regardless of location. Because the
Fund's portfolio invests globally, it provides the potential to augment
returns available from the U.S. stock market. In addition, since U.S. and
foreign markets do not always move in step with each other, a global
portfolio will be more diversified than one invested solely in U.S.
securities.
Investing directly in foreign securities is usually impractical for most
investors because it presents complications and extra costs. Investors
often find it difficult to arrange purchases and sales, to obtain current
information, to hold securities in safekeeping and to convert the value of
their investments from foreign currencies into dollars. The Fund manages
these problems for the investor. With a single investment, the investor has
a diversified worldwide investment portfolio which is managed actively by
experienced professionals. The Adviser has had many years of experience
investing in foreign markets and dealing with trading, custody and currency
transactions around the world. The Adviser has the benefit of information
it receives from worldwide sources and believes the Fund affords investors
an efficient and cost-effective method of investing worldwide.
Scudder Global Small Company Fund
Investment objective 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 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 "Additional information about policies and investments--Risk factors").
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.
Why invest in the Fund?
Scudder Global Small Company Fund offers convenient, low-cost access to a
diversified, global portfolio of equity securities issued by smaller
companies. The Fund's experienced, professional management can help
investors take advantage of a rapidly changing world economy.
Unlike small company funds which limit themselves to U.S. investments, the
Fund seeks investment opportunities wherever they arise. The Fund enjoys
the flexibility to invest in all established markets, as well as in newly
free or newly industrialized economies around the world. Because the Fund
operates globally, it may, under certain market conditions, augment the
returns available from a comparable investment in the U.S. market alone.
The Fund focuses specifically on small companies believed to have favorable
long-term growth prospects. Small companies can be attractive because they
are frequently sources of new technologies and services, often compete with
larger companies on the basis of lower labor costs and often grow faster
than larger firms. Their smaller size often allows them to respond rapidly
to changing business conditions. Also, small companies may not be closely
followed by securities analysts, so they may reward the investor with the
patience and knowledge to carefully seek them out and understand them. This
can mean significant long-term opportunity as these companies achieve
greater recognition over time.
While the Fund is broadly diversified, it is not a complete investment
program. However, adding shares of the Fund to a portfolio can increase
diversification, which should moderate overall portfolio risk.
The Fund is appropriate for investors who can accept the greater risks of
global, small company investing for the potentially greater rewards.
Investing directly in foreign securities is usually impractical for
individual investors. Investors frequently find it difficult to arrange
purchases and sales, obtain current information about companies abroad,
hold securities in safekeeping, and convert their profits from foreign
currencies to U.S. dollars. The Fund makes it easy for investors to take
advantage of small company opportunities on a global basis and benefit from
the Adviser's experience managing international mutual funds.
Scudder Greater Europe Growth Fund
Investment objective and policies
Scudder Greater Europe Growth Fund seeks long-term growth of capital
through investments primarily in the equity securities of European
companies. Although the focus is on long-term growth, the Fund may provide
current income principally through holdings in dividend-paying securities.
Greater Europe includes both the industrialized nations of Western Europe
and the less wealthy or developed countries in Southern and Eastern Europe.
Within this diverse area, the Fund seeks to benefit from accelerating
economic growth transformation and deregulation taking hold. These
developments involve, among other things, increased privatizations and
corporate restructurings, the reopening of equity markets and economies in
Eastern Europe, further broadening of the European Community, and the
implementation of economic policies to promote non-inflationary growth. The
Fund invests in companies it believes are well placed to benefit from these
and other structural and cyclical changes now underway in this region of
the world.
Investments
The Fund will invest, under normal market conditions, at least 80% of its
assets in the equity securities of European companies. The Fund defines a
European company as follows:
* A company organized under the laws of a European country or for which
the principal securities trading market is in Europe; or
* A company, wherever organized, where at least 50% of the company's
non-current assets, capitalization, gross revenue or profit in its most
recent fiscal year represents (directly or indirectly through subsidiaries)
assets or activities located in Europe.
The Fund expects the majority of its equity assets to be in the more
established and liquid markets of Western and Southern Europe. These more
established Western and Southern European countries include: Austria,
Belgium, Denmark, Finland, France, Germany, Iceland, Ireland, Italy,
Luxembourg, the Netherlands, Norway, Spain, Sweden, Switzerland, and the
United Kingdom. To enhance return potential, however, the Fund may pursue
investment opportunities in the less wealthy nations of Southern Europe,
currently Greece, Portugal and Turkey, and the former communist countries
of Eastern Europe, including countries once part of the Soviet Union. The
Fund may invest in other countries of Europe when their markets become
sufficiently developed, in the opinion of the Fund's Adviser.
The Fund intends to allocate its investments among at least three countries
at all times and does not expect to concentrate investments in any
particular industry. The Fund's equity investments are common stock,
preferred stock (convertible or non-convertible), depositary receipts
(sponsored or unsponsored) and warrants. These may be restricted
securities. Equity securities may also be purchased through rights.
Securities may be listed on securities exchanges, traded over-the-counter
or have no organized market. In addition, the Fund may engage in strategic
transactions.
The Fund may invest, under normal market conditions, up to 20% of its total
assets in European debt securities. Capital appreciation in debt securities
may arise from a favorable change in relative interest rate levels or in
the creditworthiness of issuers. Within this 20% limit, the Fund may hold
debt securities which are unrated, rated, or the equivalent of those rated
below investment grade (commonly referred to as "junk bonds"); that is,
rated below Baa by Moody's or below BBB by S&P.
The Fund may invest in when-issued securities and may enter into repurchase
agreements. The Fund may also invest in closed-end investment companies
that invest primarily in Europe.
In addition, to provide for redemptions or distributions, the Fund may
borrow from banks and other entities in an amount not exceeding the value
of one-third of the Fund's total assets. The Fund does not expect to borrow
for investment purposes.
When, in the opinion of the Adviser, market conditions warrant, the Fund
may hold foreign or U.S. debt instruments as well as cash or cash
equivalents, including foreign and domestic money market instruments,
short-term government and corporate obligations, and repurchase agreements
without limit for temporary defensive purposes and up to 20% to maintain
liquidity. See "Additional information about policies and investments--Risk
factors."
Investment strategy
The Adviser will conduct regional, country, industry and company analysis
in search of investments likely to benefit from economic, political,
industrial and other changes occurring across Europe. In investigating
these four areas, the Adviser relies heavily on fundamental analysis
supplemented by field research.
Regional and country analysis involves evaluating such factors as projected
levels of economic growth, changes in interest rates and inflation, trade
patterns, fluctuations in currencies and political developments within and
among nations. Along with this macroeconomic analysis, the Adviser weighs
the prospects for individual industries and companies. The focus will be on
looking for companies with strong management teams, solid finances, leading
products, franchises or technologies, and market strategies well positioned
to benefit from growth and developments in the region.
Why invest in the Fund?
The goal of the Fund is to provide investors with long-term growth of
capital by participating in investments, primarily in the form of equity
securities, located throughout Greater Europe, which encompasses both the
industrialized nations of Western Europe and the less wealthy or developed
markets in Southern and Eastern Europe. Greater Europe is a region of more
than 3.8 million square miles, 800 million consumers, and has a total
wealth unsurpassed by any other continent. While this region is diverse in
culture, politics and industrial development, it is taking steps to promote
greater economic integration and cooperation.
In selecting investments for the Fund, the Adviser seeks out well-managed
companies, both large multinationals and smaller local firms, standing to
benefit from structural and cyclical changes now underway in Europe.
Economic growth transformation and renewal are taking place in different
areas and different ways including: a trend toward privatizations and
corporate restructurings; deregulation and modernization of securities
markets; reduction in trade barriers and currency restrictions; global
expansion by major European companies of both exports and production; steps
toward the broadening of the European Community; economic reform and
modernization of the former communist countries of Eastern Europe; expected
further growth of an already large middle class and a general increase in
consumer confidence; and anticipated labor market restructurings. The
Adviser believes that active management, based on disciplined fundamental
research, will yield promising investment opportunities for long-term
capital appreciation.
The Fund seeks to provide appreciation over time with average international
equity fund risk. It is designed as a long-term investment and not for
short-term trading purposes, and should not be considered a complete
investment program. While the Fund entails stock market and other risks,
movements in its share price may have a low correlation with movements in
the U.S. markets, so adding shares of the Fund to an investor's portfolio
may increase the investor's portfolio diversification, and thus may
moderate overall portfolio risk.
The Fund's investments are generally denominated in foreign currencies. The
strength or weakness of the U.S. dollar against these currencies is
responsible for part of the Fund's investment performance. If the dollar
falls in value relative to the German deutschemark, for example, the dollar
value of a German stock held in the portfolio will rise even though the
price of the stock remains unchanged. Conversely, if the dollar rises in
value relative to the deutschemark, the dollar value of the German stock
will fall.
Investing directly in foreign securities is usually impractical for
individual investors. Investors frequently find it difficult and expensive
to arrange purchases and sales, obtain current market, industry or
corporate information, hold securities for safekeeping and convert profits
from foreign currencies to U.S. dollars. The Fund manages these tasks for
the investor. The Adviser has had long experience in dealing in foreign
markets and believes the Fund affords a convenient and cost-effective
method of investing in the European markets.
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. In addition, the Fund may engage in strategic
transactions.
Investments
The Fund generally invests in equity securities of established companies,
listed on foreign exchanges, which the Fund's 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.
Why invest in the Fund?
The Fund is designed for investors seeking investment opportunity and
diversification through an actively managed portfolio of foreign
securities.
One reason that some investors may wish to invest overseas is that certain
foreign economies may grow more rapidly than the U.S. economy and may offer
opportunities for achieving superior investment returns. Another reason is
that foreign stock and bond markets do not always move in step with each
other or with the U.S. markets. A portfolio invested in a number of markets
worldwide will be better diversified than one which is subject to the
movements of a single market.
Another benefit of the Fund is that it eliminates the complications and
extra costs associated with direct investment in individual foreign
securities.
Individuals investing directly in foreign stocks may find it difficult to
make purchases and sales, to obtain current information, to hold securities
in safekeeping, and to convert the value of their investments from foreign
currencies into U.S. dollars. The Fund manages these tasks for the
investor. With a single investment, the investor has a diversified
international investment portfolio, which is actively managed by
experienced professionals. The Adviser has had long experience in dealing
in foreign markets and with brokers and custodian banks around the world.
The Adviser also has the benefit of an established information network and
believes the Fund affords a convenient and cost-effective method of
investing internationally.
The Fund's investments are generally denominated in foreign currencies. The
strength or weakness of the U.S. dollar against these currencies is
responsible for part of the Fund's investment performance. If the dollar
falls in value relative to the Japanese yen, for example, the dollar value
of a Japanese stock held in the portfolio will rise even though the price
of the stock remains unchanged. Conversely, if the dollar rises in value
relative to the yen, the dollar value of the Japanese stock will fall.
Scudder Latin America Fund
Scudder Latin America Fund seeks to provide long-term capital appreciation
through investment primarily in the securities of Latin American issuers.
The Fund seeks to benefit from economic and political trends emerging
throughout Latin America. These trends are supported by governmental
initiatives designed to promote freer trade and market-oriented economies.
The Fund's Adviser believes that efforts by Latin American countries to,
among other things, reduce government spending and deficits, control
inflation, lower trade barriers, stabilize currency exchange rates,
increase foreign and domestic investment and privatize state-owned
companies, will set the stage for attractive investment returns over time.
The Fund involves above-average investment risk. It is designed as a
long-term investment and not for short-term trading purposes, and should
not be considered a complete investment program. A 2% 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.
Investments
At least 65% of the Fund's total assets will be invested in the securities
of Latin American issuers, and 50% of the Fund's total assets will be
invested in Latin American equity securities. To meet its objective to
provide long-term capital appreciation, the Fund normally invests at least
65% of its total assets in equity securities. For purposes of this
prospectus, Latin America is defined as Mexico, Central America, South
America and the Spanish-speaking islands of the Caribbean. The Fund defines
securities of Latin American issuers as follows:
* Securities of companies organized under the laws of a Latin American
country or for which the principal securities trading market is in Latin
America;
* Securities issued or guaranteed by the government of a country in
Latin America, its agencies or instrumentalities, political subdivisions or
the central bank of such country;
* Securities of companies, wherever organized, when at least 50% of an
issuer's non-current assets, capitalization, gross revenue or profit in any
one of the two most recent fiscal years represents (directly or indirectly
through subsidiaries) assets or activities located in Latin America; or
* Securities of Latin American issuers, as defined above, in the form of
depositary shares.
Although the Fund may participate in markets throughout Latin America,
under present conditions the Fund expects to focus its investments in
Argentina, Brazil, Chile, Mexico and Venezuela. In the opinion of the
Adviser, these five countries offer the most developed capital markets in
Latin America. The Fund may invest in other countries in Latin America when
the Adviser deems it appropriate. The Fund intends to allocate investments
among at least three countries at all times and does not expect to
concentrate investments in any particular industry.
The Fund's equity investments are common stock, preferred stock (either
convertible or non-convertible), depositary receipts and warrants. These
may be restricted securities and may also be purchased through rights.
Securities may be listed on securities exchanges, traded over-the-counter,
or have no organized market.
The Fund may invest in debt securities when management anticipates that the
potential for capital appreciation is likely to equal or exceed that of
equity securities. Capital appreciation in debt securities may arise from a
favorable change in relative foreign exchange rates, in relative interest
rate levels, or in the creditworthiness of issuers. Receipt of income from
such debt securities is incidental to the Fund's objective of long-term
capital appreciation. Most debt securities in which the Fund invests are
not rated. When debt securities are rated, it is expected that such ratings
will generally be below investment grade; that is, rated below Baa by
Moody's or below BBB by S&P. For more information about the debt securities
in which the Fund may invest, including risks, please see "Additional
information about policies and investments--Risk factors."
The Fund may invest up to 35% of its total assets in the equity securities
of U.S. and other non-Latin American issuers. In evaluating non-Latin
American investments, the Adviser seeks investments where an issuer's Latin
American business activities and the impact of developments in Latin
America may have a positive effect on the issuer's business results.
In selecting companies for investment, the Fund typically evaluates
industry trends, a company's financial strength, its competitive position
in domestic and export markets, technology, recent developments and
profitability, together with overall growth prospects. Other considerations
generally include quality and depth of management, government regulation,
and availability and cost of labor and raw materials. Investment decisions
are made without regard to arbitrary criteria as to minimum asset size,
debt-equity ratios or dividend history of portfolio companies.
The allocation between equity and debt, and among countries in Latin
America, varies based on a number of factors, including?: expected rates of
economic and corporate profit growth; past performance and current and
comparative valuations in Latin American capital markets; the level and
anticipated direction of interest rates; changes or anticipated changes in
Latin American government policy; and the condition of the balance of
payments and changes in the terms of trade. The Fund, in seeking
undervalued markets or individual securities, also considers the effects of
past economic crises or ongoing financial and political uncertainties.
(Continued on page 26)
Purchases
Opening an account
Minimum initial investment: $1,000; IRAs $500
Group retirement plans (401(k), 403(b), etc.) have similar or lower
minimums. See appropriate plan literature.
Make checks payable to "The Scudder Funds."
* By Mail
Send your completed and signed application and check
by regular mail to: or by express, registered,
or certified mail to:
The Scudder Funds The Scudder Funds
P.O. Box 2291 1099 Hingham Street
Boston, MA Rockland, MA
02107-2291 02370-1052
* 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 additional shares
Minimum additional investment: $100; IRAs $50
Group retirement plans (401(k), 403(b), etc.) have similar or lower
minimums. See appropriate plan literature.
Make checks payable to "The Scudder Funds."
* By Mail
Send a check with a Scudder investment slip, or with a letter of
instruction including your 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 Telephone
You may purchase additional shares in an amount of $10,000 or more.
Please call 1-800-225-5163 for more details.
* By Automatic Investment Plan ($50 minimum)
You may arrange to make investments on a regular basis through
automatic deductions from your bank checking account. Please call
1-800-225-5163 for more information and an enrollment form.
Exchanges and redemptions
Exchanging shares
Minimum investments: $1,000 to establish a new account; $100 to exchange
among existing accounts
* By Telephone
To speak with a service 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).
There is a 2% fee payable to the Scudder Latin America Fund for exchanges
of shares held less than one year.
* By Mail or Fax
Print or type your instructions and include:
- the name of the Fund and the account number you are exchanging
from;
- your name(s) and address as they appear on your account;
- the dollar amount or number of shares you wish to exchange;
- 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 mail to: or by express, or by fax to:
registered, or
certified mail to:
The Scudder Funds The Scudder Funds 1-800-821-6234
P.O. Box 2291 1099 Hingham Street
Boston, MA Rockland, MA
02107-2291 02370-1052
Redeeming shares
* By Telephone
To speak with a service 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). 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 2% fee payable to the Scudder Latin America Fund for redemption
of shares held less than one year.
* By Mail or Fax
Send your instructions for redemption to the appropriate address or
fax number above and include:
- the name of the Fund and account number you are redeeming from;
- your name(s) and address as they appear on your account;
- the dollar amount or number of shares 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 Automatic Withdrawal Plan
You may arrange to receive automatic cash payments periodically if the
value of your account is $10,000 or more. Call 1-800-225-5163 for more
information and an enrollment form.
Scudder Latin America Fund (cont'd)
(Continued from page 23)
To provide for redemptions, or in anticipation of investment in Latin
American securities, the Fund may hold cash or cash equivalents (in U.S.
dollars or foreign currencies) and other short-term securities, including
money market securities denominated in U.S. dollars or foreign currencies.
In addition, to provide for redemptions or distributions, the Fund may
borrow from banks in an amount not exceeding the value of one-third of the
Fund's total assets. The Fund does not expect to borrow for investment
purposes. The Fund may assume a defensive position when, due to political
or other factors, the Adviser determines that opportunities for capital
appreciation in Latin American markets would be significantly limited over
an extended period or that investing in those markets poses undue risk to
investors. The Fund may, for temporary defensive purposes, invest up to
100% of its assets in cash and money market instruments or invest all or a
portion of its assets in securities of U.S. or other non-Latin American
issuers. The Fund may also invest in closed-end investment companies
investing primarily in Latin America. In addition, the Fund may engage in
strategic transactions.
Why invest in the Fund?
The Fund seeks to take advantage of evolving economic and political trends
in Latin America. These trends are largely a result of efforts by Latin
American governments to institute democratic and market-oriented economic
reforms.
Although the pace and success in accomplishing these objectives vary
significantly throughout Latin America, there has been a general trend in
recent years towards reducing government's role in economic affairs and
creating a business environment conducive to investment and growth. To take
better advantage of Latin America's abundant natural resources and other
strengths, many countries in the region have established policies to
control inflation, reduce government deficits and external debt, stabilize
currency exchange rates, reduce taxes and interest rates, and modernize and
open securities markets. Governments have also privatized state-owned
enterprises, including telephone companies, utilities, banks, petrochemical
concerns and railroads, and are beginning to invest heavily in
infrastructure, which is necessary for a strong economy. In some Latin
American countries these initiatives have already led to more stable
economic conditions, stronger economic growth, reduction of capital
outflows, and increased interest by foreign investors in Latin America, all
of which have helped boost capital market returns in recent years.
Investors should be aware that participation in the Fund involves special
considerations and risks not typically associated with a mutual fund
investing principally in the securities of U.S. issuers. However, for
investors who can accept the risks of Latin American investing and have a
long-term investment horizon, the Fund offers the potential for substantial
capital appreciation over time. See "Additional information about policies
and investments--Risk factors."
Scudder Pacific Opportunities Fund
Investment objective and policies
Scudder Pacific Opportunities Fund seeks long-term growth of capital
through investment primarily in the equity securities of Pacific Basin
companies, excluding Japan. The Fund's investment program focuses on the
smaller, emerging markets in this region of the world. The Fund is
appropriate for no-load investors seeking to benefit from economic growth
in the Pacific Basin, but who do not want direct exposure to the Japanese
market. An investment in the Fund entails above-average investment risk.
Investments
The Fund invests, under normal market conditions, at least 65% of its
assets in the equity securities of Pacific Basin companies. Pacific Basin
countries include Australia, the Peoples Republic of China, India,
Indonesia, Malaysia, New Zealand, the Philippines, Sri Lanka, Pakistan and
Thailand, as well as Hong Kong, Singapore, South Korea and Taiwan--the
so-called "four tigers." The Fund may invest in other countries in the
Pacific Basin when their markets become sufficiently developed. The Fund
will not, however, invest in Japanese securities. The Fund intends to
allocate investments among at least three countries at all times and does
not expect to concentrate investments in any particular industry.
The Fund defines securities of Pacific Basin companies as follows:
* Securities of companies organized under the laws of a Pacific Basin
country or for which the principal securities trading market is in the
Pacific Basin; or
* Securities of companies, wherever organized, when at least 50% of a
company's non-current assets, capitalization, gross revenue or profit in
any one of the two most recent fiscal years represents (directly or
indirectly through subsidiaries) assets or activities located in the
Pacific Basin.
The Fund's equity investments are common stock, preferred stock (either
convertible or non-convertible), depositary receipts and warrants. These
may be restricted securities. Equity securities may also be purchased
through rights. Securities may be listed on securities exchanges, traded
over-the-counter or have no organized market.
The Fund may invest up to 35% of its total assets in foreign and domestic
debt securities if the Fund's Adviser determines that the capital
appreciation of debt securities is likely to equal or exceed the capital
appreciation of equity securities. The Fund may purchase bonds rated Aaa,
Aa or A by Moody's, or AAA, AA or A by S&P or, if unrated, of equivalent
quality as determined by the Adviser. Should the rating of a security in
the Fund's portfolio be downgraded, the Adviser will determine whether it
is in the best interest of the Fund to retain or dispose of such security.
Under normal market conditions, the Fund may invest up to 35% of its assets
in equity securities of U.S. and other non-Pacific Basin issuers (excluding
Japan). In evaluating non-Pacific Basin investments, the Adviser seeks
investments where an issuer's Pacific Basin business activities and the
impact of developments in the Pacific Basin may have a positive effect on
the issuer's business results. The Fund may also purchase shares of
closed-end investment companies that invest primarily in the Pacific Basin.
In addition, the Fund may engage in strategic transactions. For temporary
defensive purposes and to maintain liquidity, the Fund may hold without
limit debt instruments as well as cash and cash equivalents, including
foreign and domestic money market instruments, short-term government and
corporate obligations, and repurchase agreements.
Investment strategy
The Adviser seeks to identify companies with favorable potential for
appreciation through growing earnings or market recognition over time.
While these companies may be among the largest in their local markets, they
may be small by the standards of U.S. market capitalization.
The Adviser evaluates investments for the Fund from both a macroeconomic
and a microeconomic perspective, using extensive field research.
Macroeconomic research includes a study of the economic fundamentals of
each country and an examination of regional themes such as growing trade,
increases in direct foreign investment and deregulation of capital markets.
Understanding regional themes allows the Adviser to identify the industries
and sectors most likely to benefit from the political, social and economic
changes taking place across the Pacific Basin. Microeconomic analysis
identifies individual companies with exceptional business prospects, which
may be due to market dominance, unique franchises, high growth potential,
or innovative services, products or technologies. More information about
investment techniques is provided under "Additional information about
policies and investments."
Why invest in the Fund?
The Fund is designed for investors wishing to participate in the investment
opportunities afforded by the smaller, emerging markets in the Pacific
Basin. The Adviser believes that the economies of the Pacific Basin will
continue to have among the world's fastest rates of economic growth over
the next decade. These economies are generally characterized by large,
hard-working labor pools, a well-educated and growing middle class and high
savings rates. They are benefiting from rapid growth of intra-regional
trade, one of the most important economic developments in this part of the
world in recent years, and a high level of infrastructure development. Many
companies in the Pacific Basin are experiencing rising productivity and
profit growth due to increased focus on higher value added, more profitable
product lines and enhanced capital investment in technology. In addition,
governments are opening capital markets to foreign investors region-wide.
This combination of factors is attracting foreign capital to the region and
fueling growth that is presently more rapid than that of Japan, the U.S.
and other more developed countries. As a result, the stock markets in many
of these countries have, in recent years, outperformed our own.
The Fund involves above-average risk. It is designed as a long-term
investment and not for short-term trading purposes, and should not be
considered a complete investment program. However, movements in the Fund's
share price may have a low correlation with movements in the U.S. markets,
so adding shares of the Fund to an investor's portfolio may increase the
investor's portfolio diversification, and moderate overall portfolio risk.
Investing directly in foreign securities is usually impractical for
individual investors. Investors frequently find it difficult to arrange
purchases and sales, obtain current market, industry or corporate
information, hold securities for safekeeping and convert profits from
foreign currencies to U.S. dollars. The Fund manages these tasks for the
investor. The Adviser has had long experience in dealing in foreign markets
and believes the Fund affords a convenient and cost-effective method of
investing in the more dynamic, developing countries in the Pacific Basin
region. See "Additional information about policies and investments--Risk
factors."
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 a Fund), war, expropriation, political and social instability, and
diplomatic developments. In addition, 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.
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. Since the Funds normally will be invested in both U.S. and
foreign securities markets, changes in a Fund's 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.
As with any long-term investment, the value of shares when sold may be
higher or lower than when purchased. Because of the Funds' investment
policies and the investment considerations discussed above, investment in
shares of a Fund should not be considered a complete investment program.
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. Each Fund may not make loans except
through the lending of portfolio securities, the purchase of debt
securities or through repurchase agreements.
Each 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, 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 total
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.
Convertible securities
Each of the Funds, with the exception of Scudder International 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 each Fund, with the exception of Scudder Latin America 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. The convertible securities in which the
Scudder Latin America Fund may invest include fixed-income or zero coupon
debt securities 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 both nonconvertible debt securities and equity securities.
When-issued securities
Scudder Greater Europe Growth Fund, Scudder Latin America Fund and Scudder
Pacific Opportunities Fund may purchase equity and debt 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 Greater Europe Growth Fund and Scudder Latin America
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.
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.
Loan participations and assignments
Scudder Latin America Fund may invest in fixed and floating rate loans
arranged through private negotiations between an issuer of emerging market
debt instruments and one or more financial institutions ("lenders").
Generally, the Fund's investments in loans are expected to take the form of
loan participations and assignments of portions of loans from third
parties.
When investing in a participation, the Fund will typically have the right
to receive payments only from the lender to the extent the lender receives
payments from the borrower, and not from the borrower itself. Likewise, the
Fund typically will be able to enforce its rights only through the lender,
and not directly against the borrower. As a result, the Fund will assume
the credit risk of both the borrower and the lender that is selling the
participation.
When the Fund purchases assignments from lenders, it will acquire direct
rights against the borrower, but these rights and the Fund's obligations
may differ from, and be more limited than, those held by the assigning
lender.
Loan participations and assignments may be illiquid. Please refer to "Risk
factors--Illiquid investments" for more information.
Strategic Transactions and derivatives
Each of the Funds may, but are 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 each Fund's 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 each 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 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 (investment-grade) or
below, or in unrated securities. Scudder Global Small Company Fund may
invest no more than 5% of its net assets in debt securities rated below
investment-grade. Scudder Greater Europe Growth Fund may invest up to 20%
of its total assets in debt securities which are unrated, rated or the
equivalent of those rated below investment grade. All three Funds may
invest in securities which are rated as low as C by Moody's or D by S&P at
the time of purchase.
Scudder Latin America Fund may invest in debt securities which are unrated,
rated or the equivalent of those rated below investment-grade and will
invest no more than 10% of its net assets in securities rated B or lower by
Moody's or S&P, and may also invest in securities rated C by Moody's or D
by S&P.
Scudder International Fund may invest no more than 5% of its total assets
in debt securities which are rated below investment-grade and may invest in
securities which are rated C by Moody's or D by S&P or, if unrated, are of
equivalent quality.
Securities rated below Baa by Moody's and below BBB by S&P 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. Moody's considers
bonds it rates Baa to have speculative elements as well as investment-grade
characteristics. Securities rated C by Moody's or D by S&P may be in
default with respect to payment of principal and interest. The market price
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 a
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 a 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. 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. Each of the Scudder Greater Europe
Growth Fund, Scudder Latin America Fund and Scudder Pacific Opportunities
Fund is classified as a non-diversified investment company under the
Investment Company Act of 1940 (the "1940 Act"), which means that each Fund
is not limited by the 1940 Act in the proportion of its assets that it may
invest in the obligations of a single issuer. The investment of a large
percentage of a Fund's assets in the securities of a small number of
issuers may cause a Fund's share price to fluctuate more than that of a
diversified company.
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. Also, if a seller defaults, the value of such securities may
decline before the Fund is able to dispose of them.
Foreign securities. Investments in foreign securities involve special
considerations due to more limited information, higher brokerage costs,
different accounting standards, thinner trading markets and the likely
impact of foreign taxes on the income and gains from securities. They may
also entail certain other risks, such as the possibility of one or more of
the following: imposition of dividend or interest withholding or
confiscatory taxes; currency blockages or transfer restrictions;
expropriation, nationalization, military coups or other adverse political
or economic developments; less government supervision and regulation of
securities exchanges, brokers and listed companies; and the difficulty of
enforcing obligations in other countries. 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. Certain markets may require payment for securities before
delivery. A Fund's ability and decisions to purchase and sell portfolio
securities may be affected by laws or regulations relating to the
convertibility of currencies and repatriation of assets. Some countries
restrict the extent to which foreigners may invest in their securities
markets.
Currency movements. 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. Should the U.S. dollar
appreciate against foreign currencies, then the value of a Fund's
securities holdings would depreciate, all other things being equal. If the
reverse is true, then a Fund's holdings would appreciate in value.
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 a Fund to sell them promptly at an
acceptable price.
Borrowing. Although the principal of a Fund's borrowing will be fixed, a
Fund's assets may change in value during the time a borrowing is
outstanding, increasing exposure to capital risk.
Investing in small companies. There is typically less publicly available
information concerning foreign and smaller companies than for domestic and
larger, more established companies. Some small companies have limited
product lines, distribution channels and financial and managerial
resources. Also, because smaller companies normally have fewer shares
outstanding than larger companies and trade less frequently, it may be more
difficult for a Fund to buy and sell significant amounts of such shares
without an unfavorable impact on prevailing market prices. Some of the
companies in which a Fund may invest may distribute, sell or produce
products which have recently been brought to market and may be dependent on
key personnel with varying degrees of experience.
Investing in Latin America. The Adviser believes that investment
opportunities may result from recent trends in Latin America encouraging
greater market orientation and less governmental intervention in economic
affairs. Investors, however, should be aware that the Latin American
economies have experienced considerable difficulties in the past decade.
Although there have been significant improvements in recent years, the
Latin American economies continue to experience challenging problems,
including high inflation rates and high interest rates relative to the U.S.
The emergence of the Latin American economies and securities markets will
require continued economic and fiscal discipline which has been lacking at
times in the past, as well as stable political and social conditions.
Recovery may also be influenced by international economic conditions,
particularly those in the U.S., and by world prices for oil and other
commodities. There is no assurance that recent economic initiatives will be
successful.
Certain risks associated with international investments and investing in
smaller, developing capital markets are heightened for investments in Latin
American countries. For example, some of the currencies of Latin American
countries have experienced steady devaluations relative to the U.S. dollar,
and major adjustments have been made in certain of these currencies
periodically. In addition, although there is a trend toward less government
involvement in commerce, governments of many Latin American countries have
exercised and continue to exercise substantial influence over many aspects
of the private sector. In certain cases, the government still owns or
controls many companies, including some of the largest in the country.
Accordingly, government actions in the future could have a significant
effect on economic conditions in Latin American countries, which could
affect private sector companies and a Fund, as well as the value of
securities in the Fund's portfolio.
Most Latin American countries have experienced substantial, and in some
periods, extremely high, rates of inflation for many years. Inflation and
rapid fluctuations in inflation rates have had and may continue to have
negative effects on the economies and securities markets of certain Latin
American countries.
Certain Latin American countries are among the largest debtors to
commercial banks and foreign governments. Some of these countries have in
the past defaulted on their sovereign debt. Holders of sovereign debt may
be requested to participate in the rescheduling of such debt and to extend
further loans to governmental entities. There is no bankruptcy proceeding
by which sovereign debt on which governmental entities have defaulted may
be collected in whole or in part.
The limited size of many Latin American securities markets and limited
trading volume in issuers compared to the volume of trading in U.S.
securities could cause prices to be erratic for reasons apart from factors
that affect the quality of securities.
The portion of a Fund's assets invested directly in Chile may be less than
the portions invested in other countries in Latin America because, at
present, capital invested in Chile normally cannot be repatriated for as
long as five years. As such, direct investments in Chile will be limited by
each Fund's nonfundamental policy of not investing more than 10% of net
assets in securities which are not readily marketable.
If a Fund invests in securities denominated in currencies of Latin American
countries, then changes in the value of these currencies against the U.S.
dollar will result in corresponding changes in the U.S. dollar value of the
Fund's assets denominated in those currencies.
Some Latin American countries also may have managed currencies, which are
not free floating against the U.S. dollar. In addition, there is risk that
certain Latin American countries may restrict the free conversion of their
currencies into other currencies. Further, it generally will not be
possible to reduce a Fund's Latin American currency risk through hedging.
Any devaluations in the currencies in which the Fund's portfolio securities
are denominated may have a detrimental impact on the Fund's net asset
value.
Investing in the Pacific Basin. Investments in Pacific Basin countries are
susceptible to political and economic factors affecting issuers in the
region. Similarly, some Pacific Basin economies are directly affected by
Japanese capital investment in the region and by Japanese consumer demands.
This in turn may affect a Fund's investments in the region, even though it
may not be invested directly in Japan. Many of the countries of the Pacific
Basin are developing both economically and politically. Pacific Basin
countries may have relatively unstable governments, economies based on only
a few commodities or industries, and securities markets trading
infrequently or in low volumes.
Some Pacific Basin countries restrict the extent to which foreigners may
invest in their securities markets. Securities of issuers located in some
Pacific Basin countries tend to have volatile prices and may offer
significant potential for loss as well as gain. Further, certain companies
in the Pacific Basin may not have firmly established product markets, may
lack depth of management, or may be more vulnerable to political or
economic developments such as nationalization of their own industries.
Investing in Europe. A Fund's performance is susceptible to political,
social and economic factors affecting issuers in European countries. Such
factors may include, but are not limited to: growth of GDP or GNP, rate of
inflation, capital reinvestment, resource self-sufficiency and balance of
payments position, as well as interest and monetary exchange rates among
European countries.
Eastern European countries and certain Southern European countries are
considered to be emerging markets. Securities traded in certain emerging
European markets may be subject to additional risks due to political and
economic reforms including efforts to decentralize the economic
decision-making process and move toward a market-oriented economy.
Additionally, the inexperience of financial intermediaries, lack of modern
technology and the possibility of permanent or temporary termination of
trading of securities may affect a Fund's performance. To the extent that a
Fund purchases equity securities of smaller companies, such securities may
experience greater volatility and have limited liquidity.
Former communist regimes of a number of Eastern European countries had
expropriated a large amount of property, the claims on which have not been
entirely settled. There can be no assurance that a Fund's investments in
Eastern Europe would not also be expropriated, nationalized or otherwise
confiscated. Finally, any change in the leadership or policies of Eastern
European countries, or the countries that exercise a significant influence
over those countries, may halt the expansion of or reverse the
liberalization of foreign investment policies now occurring and adversely
affect existing investment opportunity.
Although the governments of certain Eastern European countries currently
are implementing or considering reforms directed at political and economic
liberalization, there can be no assurance that these reforms will continue
or achieve their goals.
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 a Fund
may use and some of their risks are described more fully in each Fund's
respective Statement of Additional Information.
Distribution and performance information
Dividends and capital gains distributions
Scudder Global Fund and Scudder International Fund intend to distribute
dividends from their ordinary income and any net realized capital gains
after utilization of capital loss carryforwards, if any, in November or
December to prevent the application of a federal excise tax, although an
additional distribution may be made if necessary.
Scudder Greater Europe Growth Fund intends to distribute any dividends from
its ordinary income and any net realized capital gains after utilization of
capital loss carryforwards, if any, in December. An additional distribution
may be made if necessary.
Scudder Global Small Company Fund, Scudder Latin America Fund and Scudder
Pacific Opportunities Fund intend to distribute any dividends from their
net investment income and any net realized capital gains after utilization
of capital loss carryforwards, if any, in December. 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 during 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. Distributions from
the Scudder Latin America Fund are not subject to the 2% redemption fee,
whether paid in cash or reinvested. 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.
Shareholders may be able to claim a credit or deduction on their income tax
returns for their pro rata portions of qualified taxes paid by a Fund to
foreign countries.
Each Fund sends detailed tax information about the amount and type of its
distributions to its shareholders by January 31 of the following year.
It is anticipated that the Scudder Greater Europe Growth Fund's portfolio
turnover rate will not exceed 100% 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 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 and ten years as
of a stated ending date. (If a Fund has not been in operation for at least
ten years, the life of the Fund will be used where applicable.) "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.
Performance for any of the six 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 of Scudder Global Fund, Inc. (the "Global Corporation"), an
open-end, management investment company registered under the 1940 Act. The
Global Corporation was organized as a Maryland corporation in May 1986.
Scudder Greater Europe Growth Fund, Scudder Latin America Fund and Scudder
Pacific Opportunities Fund are non-diversified series and Scudder
International Fund is a diversified series of Scudder International Fund,
Inc. (the "International Corporation"), an open-end, management investment
company registered under the 1940 Act. The International Corporation is a
Maryland corporation whose predecessor was organized in 1953.
The activities of the Funds are supervised by their respective Boards 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 each of the six 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.
The management fees for Scudder Global Fund and Scudder International Fund
are 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.
The management fees are 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 that 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.
For the fiscal year ended June 30, 1994, the Adviser received an investment
management fee of 0.98% of the average daily net assets of Scudder Global
Fund.
Scudder Global Small Company Fund pays the Adviser an annual fee of 1.10%
of the Fund's average daily net assets. For the period November 1, 1993
through February 28, 1994, the Adviser maintained the annualized expenses
of the 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.
Scudder Greater Europe Growth Fund pays the Adviser an annual fee of 1.00%
of the Fund's average daily net assets. 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 February 29, 1996.
For the fiscal year ended March 31, 1994, the Adviser received an
investment management fee of 0.85% of Scudder International Fund's average
daily net assets on an annual basis. The Adviser receives an investment
management fee for its 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.
Scudder Latin America Fund pays the Adviser an annual fee of 1.25% of the
Fund's average daily net assets. For the fiscal year ended October 31,
1994, the Adviser did not impose a portion of its management fee for the
Fund, maintaining the annualized expenses for the Fund at 2.01% and,
accordingly, received an investment management fee of 1.21% of the Fund's
daily net assets.
Scudder Pacific Opportunities Fund pays the Adviser an annual fee of 1.10%
of the Fund's average daily net assets.
Under each Fund's respective Investment Management Agreement with the
Adviser, a 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
shares of the Fund for sale; the fees and expenses of Directors, officers
and employees of each Corporation 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 a 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 345 Park Avenue, New York, New
York.
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.
Custodian
Brown Brothers Harriman & Co. is the custodian for each of the Funds, with
the exception of Scudder Global Fund, whose custodian is State Street Bank
and Trust Company.
Transaction information
Purchasing shares
Purchases are executed at the next calculated net asset value per share
after the Funds' 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, which may take up to seven business days. 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 exchange. 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.
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 seven business days, the order will be
canceled and the shareholder will be responsible for any loss to a Fund
resulting from this cancellation. Telephone orders are not available for
shares held in Scudder IRA accounts and most other Scudder retirement plan
accounts.
Redeeming shares
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, the
Scudder Automated Information Line, by calling 1-800-343-2890.
If you open an account by wire, you cannot redeem shares by telephone until
the Funds' 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 a Fund by telephone, you should
write to a Fund; see "How to contact Scudder" for the address.
Exchanging and redeeming shares from Scudder Latin America Fund
Upon the redemption or exchange of shares held less than a year in Scudder
Latin America Fund, a fee of 2% of the lower of the cost or the current net
asset value of the shares will be assessed and retained by the Fund for the
benefit of the remaining shareholders. 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 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 Scudder Latin America Fund's Statement of
Additional Information for a more detailed description of the redemption
fee.
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 Funds reserve 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. 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.
Share price
Purchases and redemptions, including exchanges, are made at net asset
value. There is a 2% fee payable to Scudder Latin America Fund for
exchanges or redemptions of shares held less than one year. Each Fund's
custodian determines net asset value per share, with the exception of
Scudder Greater Europe Growth Fund whose net asset value per share is
determined by Scudder Fund Accounting Corporation, a wholly-owned
subsidiary of the Adviser. Net asset value is determined 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.
Trading in securities on foreign securities exchanges is normally completed
before the close of regular trading on the Exchange. Trading on these
foreign exchanges may not take place on all days on which there is regular
trading on the Exchange, or may take place on days on which there is no
regular trading on the Exchange. If events materially affecting the value
of a Fund's portfolio securities occur between the time when these foreign
exchanges close and the time when the Fund's net asset value is calculated,
such securities will be valued at fair value as determined by each
Corporation's Board of Directors.
Processing time
All purchase and redemption requests received in good order by the Funds'
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.
Each Fund will normally send your redemption proceeds within one business
day following the redemption request, but may take up to seven 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 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
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
application when you open an account. Federal tax law requires a 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. Each Fund reserves the
right to reject new account applications without a certified Social
Security or tax identification number. Each 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 a 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 Scudder Latin America
Fund 2% redemption fee.
Minimum balances
Shareholders should maintain a share balance worth at least $1,000, which
amount may be changed by a Fund's Board of Directors. Scudder retirement
plans have similar or lower minimum share balance requirements. Each 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. Each 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
Each 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 a 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 Corporation has elected, however, to be governed by Rule
18f-1 under the 1940 Act, as a result of which a 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 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 managed by a team of Scudder investment professionals who each
play an important role in a 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 Global Small Company Fund. Lead Portfolio Manager Gerald J. Moran
has set the Scudder Global Small Company 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 J. 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.
Scudder Greater Europe Growth Fund. Carol L. Franklin, Lead Portfolio
Manager, sets Fund investment strategy and oversees its daily operation.
Ms. Franklin joined Scudder in 1981 and has eight years of European
research and investment management experience. Nicholas Bratt, Portfolio
Manager, helps set the Fund's general investment strategies. Mr. Bratt has
over 20 years of experience in worldwide investing and has been with
Scudder since 1976. Joan Gregory, Portfolio Manager, 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.
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 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 Latin America Fund. Lead Portfolio Manager Edmund B. Games, Jr. has
set the Fund's investment strategy and overseen its daily operation since
the Fund was introduced in 1992. Mr. Games joined Scudder's equity research
area in 1960 and has focused on Latin American stocks since 1988. Joyce E.
Cornell, Portfolio Manager, has focused on stock selection since 1993. Ms.
Cornell, who has eight years of investment experience as a research
analyst, joined Scudder in 1991. William F. Truscott,
Portfolio Manager, contributes expertise on the Fund's Latin American
investments, a role he has filled since the Fund commenced operations. Mr.
Truscott joined Scudder in 1992 and has 11 years of experience in the
financial industry, including seven years specifically focused on Latin
American investments.
Scudder Pacific Opportunities Fund. Lead Portfolio Manager Elizabeth J.
Allan assumed responsibility for the Fund's day-to-day management and
investment strategies in February 1994. Ms. Allan joined Scudder in 1987 as
a member of the portfolio management team of a Scudder closed-end mutual
fund concentrating its investments in Asia. Nicholas Bratt, Portfolio
Manager, has been a member of the Fund's team since 1992 and has over 20
years of experience in global investing. Joyce E. Cornell, Portfolio
Manager since 1993, has focused on stock selection, a role she has played
since the Fund's introduction in 1992. Ms. Cornell, who has eight years of
investment experience as a research analyst, joined Scudder in 1991 in this
capacity. Eileen O. Gerspach, Portfolio Manager, helps set the Fund's
general investment strategies. Ms. Gerspach, who joined the team in March
1995, has worked in the investment industry since 1984 and has eight years
of experience as a portfolio manager.
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.
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 a 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.
* 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.
* 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.
* 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.
* 403(b) Plans. Retirement plans for tax-exempt organizations and school
systems to which employers and employees may both contribute.
* 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.
* 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(tm)). 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.
Directors and Officers
Edmond D. Villani*
Chairman of the Board and Director
Nicholas Bratt*
President (3); Director
William E. Holzer*
President (4); Vice President (1)
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 (1); Consultant
Juris Padegs*
Director (1); Vice President and Assistant Secretary
Daniel Pierce*
Director; Vice President (2)
Gordon Shillinglaw
Director (1); Professor Emeritus of Accounting, Columbia University
Graduate School of Business
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 Franklin*
Vice President (3)
Edmund B. Games, Jr.*
Vice President (1)
Jerard K. Hartman*
Vice President
Thomas W. Joseph*
Vice President
Douglas M. Loudon*
Vice President (2)
Gerald J. Moran*
Vice President (2)
Cornelia M. Small*
Vice President (2)
Lawrence Teitelbaum*
Vice President (2)
William F. Truscott*
Vice President (1)
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 (1)
Coleen Downs Dinneen*
Assistant Secretary
(1) Scudder Greater Europe Growth Fund, Scudder International Fund,
Scudder Latin America Fund, Scudder Pacific Opportunities Fund
(2) Scudder Global Fund, Scudder Global Small Company Fund
(3) All funds except Scudder Global Fund
(4) Scudder Global Fund
All funds unless otherwise indicated
* Scudder, Stevens & Clark, Inc.
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*
Growth and Income
Scudder Balanced Fund
Scudder Growth and Income 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
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
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 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.
