This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
68-6-115
MIS68S
Scudder
International
Fund
Semiannual Report
September 30, 1995
* A fund offering opportunities for long-term growth of capital primarily
from foreign equity securities.
* A pure no-load(TM) fund with no commissions to buy, sell, or exchange
shares.
<PAGE>
SCUDDER INTERNATIONAL FUND
- --------------------------------------------------------------------------------
CONTENTS
2 In Brief
3 Letter from the Fund's Chairman
4 Performance Update
5 Portfolio Summary
6 Portfolio Management Discussion
10 Investment Portfolio
19 Financial Statements
22 Financial Highlights
23 Notes to Financial Statements
29 Report of Independent Accountants
30 Investment Products and Services
31 How to Contact Scudder
IN BRIEF
* Scudder International Fund generated a strong 14.10% total return for the
first half of its fiscal year, based on solid returns from many of its
European and other holdings.
* The Fund's return outpaced both the unmanaged MSCI EAFE & Canada Index and
the average return of the 269 international funds tracked by Lipper
Analytical Services.
BAR CHART TITLE: Total Returns for the Six Months Ended September 30, 1995
CHART DATA:
Scudder MSCI EAFE Lipper average
International & Canada for international
Fund Index funds
---- ----- -----
14.10% 5.08% 9.18%
* The Fund remained overweighted in Europe during the period, given the
region's moderate economic growth, low inflation, and attractive
valuations.
* The Fund's portfolio managers have invested cautiously in Japan, where the
banking industry crisis and a sluggish economy are still concerns. With the
yen likely to decline against the dollar in the months ahead, 50% of the
portfolio's Japanese stock holdings have been hedged back to U.S. dollars.
2
<PAGE>
LETTER FROM THE FUND'S CHAIRMAN
- --------------------------------------------------------------------------------
Dear Shareholders,
In recent months, major international stock markets enjoyed the
benefits of low inflation, moderate economic growth, and monetary easing.
Several European bourses rallied strongly, while the Japanese market returned
more than 20% in the third quarter alone. Volatility in the world's currency
markets tempered returns somewhat for U.S. investors, but generally the markets
have trended upward in dollar terms. We are particularly pleased with the return
of Scudder International Fund for the semiannual period ended September 30,
1995. The Fund's 14.10% gain in net asset value per share is clearly
above-average when measured against its benchmark index and the average return
of its peer group.
Although strong, international markets have failed to keep pace with
the U.S. stock market, which returned 18.23% for the six-month period and 29.73%
for the year-to-date. The fact that the U.S. market has outperformed
international markets on the whole suggests that foreign markets are
attractively valued by comparison. We expect relative valuations to change in
the coming months as the U.S. stock market peaks under pressure from slowing
earnings growth and as several factors combine to heighten demand for non-U.S.
investments. For example, in Germany and Japan, strong local currencies have
kept substantial savings at home -- capital that should flow into other European
and Asian markets as the yen and deutchemark decline to more reasonable levels.
Furthermore, we believe economic cycles in many foreign markets are more
favorable for equity investment than in the United States. Given the opportunity
for significant capital appreciation overseas, we are confident that Scudder
International Fund is well-positioned to provide attractive returns for its
shareholders.
We would also like to take this opportunity to announce that on October
6, 1995, we introduced Scudder Small Company Value Fund, a pure no-load(TM)
mutual fund designed to seek long-term growth of capital through a disciplined,
value-oriented approach to small-stock investing. For more information about
Scudder Small Company Value Fund and other investment products and services,
please see page 30.
Sincerely,
/s/Edmond D. Villani
Edmond D. Villani
Chairman,
Scudder International Fund
3
<PAGE>
Scudder International Fund
Performance Update as of September 30, 1995
- -----------------------------------------------------------------
Growth of a $10,000 Investment
- -----------------------------------------------------------------
Scudder International Fund
- ----------------------------------------
Total Return
Period Growth --------------
Ended of Average
9/30/95 $10,000 Cumulative Annual
- -------- ------- ---------- ------
1 Year $10,707 7.07% 7.07%
5 Year $16,884 68.84% 11.04%
10 Year $40,525 305.25% 15.02%
MSCI EAFE & Canada Index
- --------------------------------------
Total Return
Period Growth --------------
Ended of Average
9/30/95 $10,000 Cumulative Annual
- -------- ------- ---------- ------
1 Year $10,587 5.87% 5.87%
5 Year $16,462 64.62% 10.48%
10 Year $38,878 288.78% 14.53%
A chart in the form of a line graph appears here,
illustrating the Growth of a $10,000 Investment.
The data points from the graph are as follows:
Yearly periods ended September 30
Scudder International Fund
Year Amount
- ----------------------
85 $10,000
86 $16,478
87 $23,720
88 $19,415
89 $26,498
90 $24,002
91 $27,818
92 $27,700
93 $34,203
94 $37,849
95 $40,525
MSCI EAFE & Canada Index
Year Amount
- ----------------------
85 $10,000
86 $18,458
87 $26,751
88 $26,429
89 $32,374
90 $23,616
91 $28,686
92 $26,602
93 $33,395
94 $36,720
95 $38,878
The Morgan Stanley Capital International (MSCI) Europe, Australia,
the Far East (EAFE) & Canada Index is an unmanaged capitalization-
weighted measure of stock markets in Europe, Australia, the Far East
and Canada. Index returns assume dividends reinvested net of
withholding tax and, unlike Fund returns, do not reflect any fees
or expenses.
- -----------------------------------------------------------------
Returns and Per Share Information
- -----------------------------------------------------------------
A chart in the form of a bar graph appears here,
illustrating the Fund Total Return (%) and Index Total
Return (%) with the exact data points listed in the table
below.
Yearly periods ended September 30
- ---------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
--------------------------------------------------------------------------------
Net Asset Value... $40.32 $46.59 $31.96 $39.20 $32.65 $35.30 $34.25 $40.93 $43.73 $45.32
Income Dividends.. $ .49 $ .46 $ .49 $ -- $ .62 $ .55 $ .51 $ .35 $ .34 $ --
Capital Gains
Distributions..... $ 1.68 $ 8.82 $ 5.37 $ 3.65 $ 2.61 $ 1.77 $ .40 $ -- $ 1.18 $ 1.33
Fund Total
Return (%)........ 64.78 43.95 -18.15 36.48 -9.42 15.90 -.45 23.48 10.66 7.07
Index Total
Return (%)........ 84.58 44.93 -1.20 -22.49 -27.05 21.47 -7.27 25.54 9.96 5.87
</TABLE>
All performance is historical, assumes reinvestment of all dividends and
capital gains, and is not indicative of future results.
Investment return and principal value will fluctuate, so an investor's
shares, when redeemed, may be worth more or less than when purchased.
4
<PAGE>
Portfolio Summary as of September 30, 1995
- ---------------------------------------------------------------------------
Geographical (Excludes 3% Cash Equivalents)
- ---------------------------------------------------------------------------
Europe 56% The Funds large weighting in
Japan 24% Europe reflects the region's low
Pacific Basin 13% inflation, moderating economic
Latin America 4% growth, monetary easing, and
Canada 3% attractive stock valuations.
----
100%
====
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- --------------------------------------------------------------------------
Sectors (Excludes 3% Cash Equivalents)
- --------------------------------------------------------------------------
Manufacturing 23%
Financial 13%
Metals & Minerals 10% In Europe's environment of
Energy 9% slowing economic growth,
Technology 7% financial, pharmaceutical, and
Consumer Staples 6% select consumer stocks have
Service Industries 6% provided excellent returns.
Health 5%
Durables 5%
Other 16%
----
100%
====
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- --------------------------------------------------------------------------
Ten Largest Equity Holdings
- --------------------------------------------------------------------------
1. SAP AG
German computer software manufacturer
2. HITACHI LTD.
Japanese general electronics manufacturer
3. NOKIA AB OY
Leading manufacturer of cellular telephones in Finland
4. CANON INC.
Leading producer of visual image and information equipment in Japan
5. FUJITSU LTD.
Leading manufacturer of computers in Japan
6. L.M. ERICSSON TELEPHONE CO.
Leading manufacturer of cellular telephone equipment in Sweden
7. MATSUSHITA ELECTRICAL INDUSTRIAL CO., LTD.
Japanese consumer electronic products manufacturer
8. BROWN, BOVERI & CIE. AG
Manufacturer of electrical equipment in Switerland
9. PHILIPS ELECTRONICS N.V.
Leading manufacturer of electrical equipment in the Netherlands
10. VEBA AG
Electric utility, distributor of oil and chemicals in Germany
Many of the Fund's largest holdings produced double-digit gains during the
six-month period.
For more complete details about the Fund's Investment Portfolio,
see page 10.
A monthly Investment Portfolio Summary and quarterly Portfolio Holdings
are available upon request.
5
<PAGE>
SCUDDER INTERNATIONAL FUND
PORTFOLIO MANAGEMENT DISCUSSION
- --------------------------------------------------------------------------------
Dear Shareholders,
Scudder International Fund returned a strong 14.10% during the six
months ended September 30, 1995, including an increase in net asset value per
share of $5.60, from $39.72 to $45.32. The Fund's return surpassed that of its
benchmark index and the average return of its peers. The unmanaged Morgan
Stanley Capital International (MSCI) Europe, Australia, the Far East (EAFE) &
Canada Index returned 5.08% for the six months, while the 269 international
funds tracked by Lipper returned 9.18% on average.
International stock markets have been characterized by conflicting
trends in recent months. Several European bourses reached all time highs,
propelled by low inflation, monetary easing, and concerted intervention by major
central banks to support the U.S. dollar. The Japanese market responded
positively when the value of the dollar climbed over 100 yen, offering the
prospect of relief to an economy hindered by its overvalued currency. A cut in
Japan's official discount rate to a record low, together with the perception
that Japanese financial policy was finally taking a positive turn, provided
further support. However, markets faltered toward the end of the period when the
U.S. currency fell back after only a short rally. The dollar decline was
prompted by several factors including a disappointing Japanese fiscal package,
fears that a dispute between Germany and other EU members could threaten the
creation of monetary union in Europe, and stronger-than-expected U.S. economic
data. We continue to believe that the dollar will strengthen against the yen in
the coming months, although we do not rule out further temporary setbacks.
Despite volatility in the latter part of the period, several markets
had excellent returns. The Nordic bourses continued to steam ahead, with Sweden
and Finland rising 28.7% and 51.3%, respectively. Strong performance from
Ericsson and Nokia, global players in cellular telecommunications (and large
holdings in the portfolio) helped lead these indices. The U.K. market rallied
13.6%, driven by a more favorable interest rate environment and takeover bid
activity largely in the utility sector. (News that PowerGen -- a portfolio
holding -- and Midlands Electric were in bid talks led to a speculative surge in
the market.) Meanwhile, the French stock market fell when the French budget
raised doubts about the government's commitment to fiscal austerity. Also,
controversy surrounding France's nuclear testing in the Pacific negatively
affected investor confidence. In Asia, the Japanese market returned 11.7% for
the period, and Hong Kong returned 13.1% thanks to a favorable economic backdrop
6
<PAGE>
PORTFOLIO MANAGEMENT DISCUSSION
- --------------------------------------------------------------------------------
and a stronger dollar. Elsewhere, Brazil led emerging South American markets
with a 40.1% surge, inspired by lower inflation, falling interest rates, and
confidence in the economy.
Portfolio Strategy: Heavy Weighting in Europe,
Focus on Stock Selection
The Fund remains overweighted in Europe for a number of reasons. Growth
is moderate overall, inflation is low, and the interest rate environment is
constructive for equities. Also, from a valuation standpoint, European markets
are among the cheapest in the developed world, with such valuations generally
underpinned by strong earnings momentum.
Portfolio performance continues to be enhanced by positions in Europe's
emerging global competitors. SAP, the fast-growing German manufacturer of
computer software, was up 102% during the period; while Nordic companies Nokia
and Ericsson gained 81% and 59%, respectively. The portfolio is also positioned
in telecommunications stocks with a domestic focus. Telecom Italia Mobile is the
primary supplier of cellular phone service in Italy. Italy has the
fastest-growing market for cellular phones in Europe, and recent stock price
appreciation reflects the strong earnings momentum anticipated over the next few
years. We also continue to emphasize companies that are rationalizing and
downsizing their operations. Germany's Siemens is one of the world's largest
manufacturers of electrical and electronic equipment. Management has instituted
a major restructuring in recent years, and the company is expected to emerge as
a more focused and flexible entity. In a macroeconomic environment where growth
appears to be slowing, stocks with a more defensive tilt, such as
pharmaceuticals, have had excellent returns. Zeneca (up 32%) is a British
bioscience group with one of the premier pipelines in the industry. In the wake
of drug industry reform, companies with innovative portfolios like Zeneca's
stand to benefit most. Stock performance over the quarter was further enhanced
by bid rumors for the company.
7
<PAGE>
SCUDDER INTERNATIONAL FUND
- --------------------------------------------------------------------------------
BAR CHART TITLE: Geographic Distribution of Portfolio Holdings
CHART DATA:
Japan 22.7% 22.0%
United Kingdom 10.0% 10.6%
France 7.1% 6.4%
Germany 5.9% 5.5%
Netherlands 5.6% 5.0%
Sweden 5.2% 3.4%
Switzerland 5.1% 5.6%
Hong Kong 4.0% 3.5%
CHART FOOTNOTE:
Represents investments in common stock as a percentage of the total portfolio.
In Japan, we remain cautious. Policy makers have failed to implement
the important structural changes necessary to resolve the banking crises and
jump-start the economy. Though underweight in Japan versus the Fund's benchmark
index, we are positioned in globally competitive technology companies with
positive earnings momentum, where a weaker yen should aid profits. Portfolio
holdings such as Fujitsu (up 45%), Hitachi (up 20%), and Kyocera (up 26% during
the period) are beneficiaries of strong global demand for semiconductors and
computers and have stock valuations in line with their international peers.
Despite the recent whipsaw in currency values, we anticipate the yen will
decline to more reasonable levels versus the dollar. As a result, we have hedged
50% of the portfolio's Japanese equity exposure.
8
<PAGE>
PORTFOLIO MANAGEMENT DISCUSSION
- --------------------------------------------------------------------------------
We maintain a selective approach toward emerging markets. In Southeast
Asia, rapid economic growth and the ability to produce cheaply continues to
attract investors. Stock selection remains focused on industrial conglomerates,
the banking sector, and consumer-related companies. In Latin America, our most
important weighting is in Brazil (3.1% of portfolio holdings on September 30),
led by Companhia Vale do Rio Doce, a mining and industrial company. While
progress on constitutional reforms and privatizations is moving slowly, the Real
plan is working, inflation continues to trend lower, and the popularity of
President Cardoso lends support to the government in passing much-needed
reforms.
Looking Ahead
In recent months, economic statistics coming from around the world have
confirmed our expectations for very modest global inflation against a backdrop
of subdued economic growth. We therefore anticipate a benign environment for
interest rates, with most central banks steering a cautious path between
stimulating growth and containing inflation. In fact, during the most recent
quarter, rates continued to come down in many developed countries.
There are additional reasons for optimism. Despite recent strong
returns, international equities have reached a very extended low relative to
U.S. equity returns, suggesting opportunities for price appreciation. Moreover,
as savings begin to flow out of Japan and Germany, and as the U.S. stock market
peaks, we believe strong investor demand will propel stock prices overseas.
While a rise in the dollar may temper gains somewhat on international
investments for U.S. investors, profits of large foreign firms should rebound
strongly on U.S. dollar strength. For the long-term investor, we believe the
Fund is well positioned for capital appreciation.
Sincerely,
Your Portfolio Management Team
/s/Carol L. Franklin /s/ Nicholas Bratt
Carol L. Franklin Nicholas Bratt
/s/Irene T. Cheng /s/Joan R. Gregory
Irene T. Cheng Joan R. Gregory
/s/Francisco S. Rodrigo III
Francisco S. Rodrigo III
<PAGE>
SCUDDER INTERNATIONAL FUND
INVESTMENT PORTFOLIO AS OF SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
% of Principal Market
Portfolio Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <S> <C>
1.4% REPURCHASE AGREEMENTS
32,279,000 Repurchase Agreement with Salomon
Brothers dated 9/29/95 at 6.07% to be
repurchased at $32,295,328 on 10/2/95,
collateralized by a $27,771,000
U.S. Treasury Note, 8%, 11/15/21
(Cost $32,279,000) . . . . . . . . . . . . . . . 32,279,000
-------------
0.8% COMMERCIAL PAPER
10,000,000 General Electric Capital Services Inc.,
5.73%, 10/2/95 . . . . . . . . . . . . . . . . . 10,000,000
9,250,000 Rincon Securities Inc., 5.75%, 10/16/95. . . . . . 9,227,839
-------------
TOTAL COMMERCIAL PAPER (Cost $19,227,839). . . . . 19,227,839
-------------
1.2% SHORT-TERM NOTES
30,000,000 Federal National Mortgage Association
Discount Note, 6.3%, 10/2/95
(Cost $29,994,750) . . . . . . . . . . . . . . . 29,994,750
-------------
0.7% CONVERTIBLE BONDS
KOREA 0.5% 5,000,000 Ssangyong Cement Industrial Co., Ltd., 3%,
12/31/05 . . . . . . . . . . . . . . . . . . . . 6,125,000
4,000,000 Tong Yang Nylon, 3.25%, 12/31/05 . . . . . . . . . 4,920,000
-------------
11,045,000
-------------
PHILIPPINES 0.2% 7,000,000 International Container Terminal Services,
Inc., 5%, 9/15/01. . . . . . . . . . . . . . . . 5,915,000
-------------
TOTAL CONVERTIBLE BONDS (Cost $15,795,064) . . . . 16,960,000
-------------
4.6% PREFERRED STOCKS
Shares
GERMANY 4.1% 70,000 RWE AG (Producer and marketer of
petroleum and chemical products) . . . . . . . . 18,972,008
490,000 SAP AG (Computer software manufacturer). . . . . . 79,792,162
-------------
98,764,170
-------------
ITALY 0.5% 4,800,000 Fiat SpA (Multi-industry, automobiles) . . . . . . 11,164,522
-------------
TOTAL PREFERRED STOCKS (Cost $40,600,616). . . . . 109,928,692
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- -----
10
<PAGE>
INVESTMENT PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <S> <C>
90.2% COMMON STOCKS
ARGENTINA 0.6% 785,000 YPF SA "D" (ADR) (Petroleum company) . . . . . . . 14,130,000
-------------
AUSTRALIA 1.3% 6,184,644 Ampol Exploration Ltd. (Oil and gas
exploration company) . . . . . . . . . . . . . . 13,367,767
61,676 Coca Cola Amatil Ltd. (Soft drink bottler
and distributor) . . . . . . . . . . . . . . . . 463,786
5,391,300 Poseidon Gold Ltd. (Growing gold producer) . . . . 10,063,952
1,480,100 Woodside Petroleum Ltd. (Major oil and gas
producer). . . . . . . . . . . . . . . . . . . . 7,114,204
-------------
31,009,709
-------------
BRAZIL 3.1% 43,226,227 Centrais Eletricas Brasileiras S/A "B" (pfd.)
(Electric utility) . . . . . . . . . . . . . . . 13,334,569
241,379 Companhia Cervejaria Brahma (pfd.) (Leading
beer producer and distributor) . . . . . . . . . 98,395
132,060,000 Companhia Vale do Rio Doce (pfd.) (Diverse
mining and industrial complex) . . . . . . . . . 22,309,071
108,000,000 Petroleo Brasileiro S/A (pfd.) (Petroleum
company) . . . . . . . . . . . . . . . . . . . . 11,445,360
300,000,000 Telecomunicacoes Brasileiras S.A. (pfd.)
(Telecommunication services) . . . . . . . . . . 14,306,700
10,499,200,000 Usinas Siderurgicas de Minas Gerais S/A
(pfd.) (Non-coated flat products and
electrolytic galvanized products). . . . . . . . 11,677,406
-------------
73,171,501
-------------
CANADA 2.7% 755,000 Barrick Gold Corp. (Gold exploration and
production in North and South America) . . . . . 19,521,746
225,000 Canadian Pacific Ltd. (Transportation and
resource conglomerate) . . . . . . . . . . . . . 3,600,000
701,941 Canadian Pacific Ltd. (Ord.) . . . . . . . . . . . 11,229,385
1,246,000 Hemlo Gold Mines, Inc. (Large gold producer,
with single mine in Ontario; active exploration
company) . . . . . . . . . . . . . . . . . . . . 12,747,870
500,000 Imperial Oil Ltd. (Producer and refiner of natural
gas and petroleum products in Canada). . . . . . 18,601,882
-------------
65,700,883
-------------
FINLAND 3.3% 308,000 Metsa-Serla Oy "B" (Tissue paper producer) . . . . 12,244,946
600,000 Nokia AB Oy "A" (Leading manufacturer of
cellular telephones) . . . . . . . . . . . . . . 42,094,924
1,393,000 Outokumpu Oy "A" (Metals and minerals) . . . . . . 24,758,363
-------------
79,098,233
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
----
11
<PAGE>
SCUDDER INTERNATIONAL FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <S> <C>
FRANCE 7.1% 175,000 AXA (Insurance group providing insurance,
finance and real estate services worldwide). . . 9,231,668
44,200 Carrefour (Hypermarket and food retailing) . . . . 25,947,187
90,495 Castorama-Dubois Investissements (Retailer,
wholesaler and distributor). . . . . . . . . . . 14,742,431
185,000 Compagnie Bancaire SA (Bank) . . . . . . . . . . . 17,244,871
164,533 Compagnie de Saint-Gobain (Glass
manufacturer). . . . . . . . . . . . . . . . . . 20,052,773
88,000 LVMH Moet-Hennessy Louis Vuitton (Producer
of wine, spirits and luxury products). . . . . . 16,606,134
241,608 Societe Nationale Elf Aquitaine
(Petroleum company). . . . . . . . . . . . . . . 16,308,417
353,976 Total SA "B" (International oil and gas
exploration, development and production) . . . . 21,426,945
113,000 Union des Assurances Federales SA
(Insurance group). . . . . . . . . . . . . . . . 11,591,509
392,465 Valeo SA (Automobile and truck components
manufacturer). . . . . . . . . . . . . . . . . . 18,479,258
-------------
171,631,193
-------------
GERMANY 5.9% 80,000 Bayer AG (Leading chemical producer) . . . . . . . 20,377,887
411,910 Deutsche Bank AG (Bank). . . . . . . . . . . . . . 19,609,683
71,162 Mannesmann AG (Bearer) (Diversified
construction and technology company) . . . . . . 23,355,478
243,000 Schering AG (Pharmaceutical and chemical
producer). . . . . . . . . . . . . . . . . . . . 17,923,163
24,000 Siemens AG (Bearer) (Manufacturer of
electrical and electronic equipment) . . . . . . 12,114,206
741,500 VEBA AG (Electric utility, distributor of oil and
chemicals) . . . . . . . . . . . . . . . . . . . 29,426,498
51,000 Viag AG (Provider of electrical power and
natural gas services, aluminum products,
chemicals, ceramics and glass) . . . . . . . . . 19,629,111
-------------
142,436,026
-------------
HONG KONG 4.0% 10,000,000 First Pacific Co., Ltd. (International
management and investment company) . . . . . . . 10,670,357
1,718,844 HSBC Holdings Ltd. (Bank). . . . . . . . . . . . . 23,898,461
10,278,674 Hong Kong & China Gas Co., Ltd. (Gas utility). . . 16,551,275
4,838,584 Hutchison Whampoa, Ltd. (Container terminal
and real estate company) . . . . . . . . . . . . 26,221,487
4,969,000 Television Broadcasts, Ltd. (Television
broadcasting). . . . . . . . . . . . . . . . . . 19,794,508
-------------
97,136,088
-------------
HUNGARY 0.1% 3,619 First Hungary Fund (Investment company) (d). . . . 3,485,097
-------------
INDIA 0.4% 2,110,000 The India Fund (Investment company)* . . . . . . . 10,667,829
-------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- ----
12
<PAGE>
INVESTMENT PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <S> <C>
INDONESIA 1.2% 1,200,000 HM Sampoerna (Foreign registered)
(Tobacco company). . . . . . . . . . . . . . . . 11,176,341
800,000 Indocement Tunggal (Foreign registered)
(Cement producer). . . . . . . . . . . . . . . . 2,913,264
3,369,600 Kalbe Farma (Foreign registered)
(Pharmaceutical producer and distributor)* . . . 13,460,552
82,000 Kalbe Farma (Ordinary) . . . . . . . . . . . . . . 327,566
-------------
27,877,723
-------------
ITALY 2.3% 6,500,000 Istituto Nazionale delle Assicurazione
(Insurance company). . . . . . . . . . . . . . . 8,788,960
5,050,000 Societa Finanziaria Telefonica Torino SpA
(Telephone utility and telecommunication
equipment manufacturer). . . . . . . . . . . . . 15,348,116
3,700,000 Telecom Italia SpA (Telecommunication
services)* . . . . . . . . . . . . . . . . . . . 6,115,987
15,250,000 Telecom Italia Mobile SpA (Cellular
telecommunication services)* . . . . . . . . . . 25,444,255
-------------
55,697,318
-------------
JAPAN 22.7% 2,258,000 Canon Inc. (Leading producer of visual
image and information equipment) . . . . . . . . 40,347,888
1,350 DDI Corp. (Long distance telephone and
cellular operator) . . . . . . . . . . . . . . . 11,148,352
2,850,000 Fujitsu Ltd. (Leading manufacturer of
computers) . . . . . . . . . . . . . . . . . . . 35,964,868
4,331,000 Hitachi Ltd. (General electronics manufacturer). . 47,221,039
1,800,000 Hitachi Metals, Ltd. (Major producer of high-
quality specialty steels). . . . . . . . . . . . 21,260,916
250,000 Horipro Inc. (Growing entertainment production
company) . . . . . . . . . . . . . . . . . . . . 3,836,253
318,000 Ito-Yokado Co., Ltd. (Leading supermarket
operator). . . . . . . . . . . . . . . . . . . . 17,592,651
2,550,000 Itochu Corp. (Leading general trading
company) . . . . . . . . . . . . . . . . . . . . 15,729,140
5,100,000 Kawasaki Steel Corp. (Major integrated steel
maker) . . . . . . . . . . . . . . . . . . . . . 18,329,211
192,000 Keyence Corp. (Specialized manufacturer
of sensors). . . . . . . . . . . . . . . . . . . 23,841,300
352,000 Kyocera Corp. (Leading ceramic package
manufacturer). . . . . . . . . . . . . . . . . . 28,926,152
265,000 Mabuchi Motor Co., Ltd. (Manufacturer of
DC motors) . . . . . . . . . . . . . . . . . . . 15,650,396
2,126,000 Matsushita Electrical Industrial Co., Ltd.
(Consumer electronic products manufacturer). . . 32,623,492
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
----
13
<PAGE>
SCUDDER INTERNATIONAL FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <S> <C>
1,736,000 NGK Spark Plug Co., Ltd. (Leading
manufacturer of automotive spark plugs). . . . . 23,484,327
1,300,000 NSK Ltd. (Leading manufacturer of bearings
and other machinery parts) . . . . . . . . . . . 7,979,405
234,000 Nichiei Co., Ltd. (Finance company for small
and medium-sized firms). . . . . . . . . . . . . 15,024,380
731,000 Nippon Shokubai Corp., Ltd. (Specialty
chemical producer) . . . . . . . . . . . . . . . 6,715,562
4,150,000 Nisshin Steel Co., Ltd. (Blast furnace
steelmaker). . . . . . . . . . . . . . . . . . . 17,303,013
430,000 Pioneer Electronics Corp. (Leading
manufacturer of audio equipment) . . . . . . . . 7,770,431
350,000 SMC Corp. (Leading maker of pneumatic
equipment) . . . . . . . . . . . . . . . . . . . 23,673,717
10,000 Secom Co., Ltd. (Electronic security system
operator). . . . . . . . . . . . . . . . . . . . 666,296
1,650,000 Sekisui Chemical Co., Ltd. (Leading chemical
producer, PVC resin processor) . . . . . . . . . 20,988,340
1,150,000 ShinMaywa Industries, Ltd. (Leading maker of
dump trucks and other specialty vehicles). . . . 9,810,206
342,000 Sony Corp. (Consumer electronic products
manufacturer). . . . . . . . . . . . . . . . . . 17,746,504
1,450,000 Sumitomo Corp. (Leading general trading
company, with offices, subsidiaries and
affiliates throughout the world) . . . . . . . . 13,862,501
1,540,000 Sumitomo Electric Industries, Ltd. (Leading
manufacturer of electric wires and cables) . . . 18,811,771
7,650,000 Sumitomo Metal Industries, Ltd. (Leading
integrated crude steel producer)*. . . . . . . . 22,242,189
900,000 Takeda Chemical Industries, Ltd. (Leading
pharmaceutical manufacturer) . . . . . . . . . . 12,538,489
2,150,000 Toshiba Corp. (General electronics
manufacturer). . . . . . . . . . . . . . . . . . 15,736,207
-------------
546,824,996
-------------
KOREA 2.1% 250 units (c) Korea 1990 Trust IDR (Investment company) . . . . 1,250,000
585 units (c) Korea Asia Fund (IDR) (Investment company)*. . . . 6,800,625
190 units (c) Korea Equity Trust IDR (Investment company). . . . 2,280,000
257,668 Korea Long Term Credit Bank
(Major commercial bank). . . . . . . . . . . . . 7,949,403
21,000 Korea Trust (Investment company) (b) . . . . . . . 1,312,500
7,030 Pohang Iron & Steel Co., Ltd. (d) (Leading
producer of steel products for construction
and shipbuilding industries) . . . . . . . . . . 728,074
75,000 Pohang Iron & Steel Co., Ltd. (ADR). . . . . . . . 2,465,625
26,673 Samsung Electronics Co., Ltd. (GDS)
(Voting)(Major electronics manufacturer) . . . . 3,200,760
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- ----
14
<PAGE>
INVESTMENT PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <S> <C>
5,278 Samsung Electronics Co., Ltd. (GDS)
(Voting)(New(e)) (d) . . . . . . . . . . . . . . 632,906
4,058 Samsung Electronics Co., Ltd. (GDS)
(Voting)(New(e)) (d) . . . . . . . . . . . . . . 486,027
246,705 Samsung Electronics Co., Ltd. (GDS)
(Non-voting) . . . . . . . . . . . . . . . . . . 17,269,350
48,823 Samsung Electronics Co., Ltd. (GDS)
(Non-voting)(New(e)) . . . . . . . . . . . . . . 2,929,380
95,917 Samsung Heavy Industries Co., Ltd.
(Machinery manufacturer) . . . . . . . . . . . . 3,034,084
12,527 Samsung Heavy Industries Co., Ltd.
(New(e)) . . . . . . . . . . . . . . . . . . . . 378,321
-------------
50,717,055
-------------
MALAYSIA 1.4% 2,550,000 Malayan Banking Bhd. (Leading banking
and financial services group). . . . . . . . . . 20,607,086
8,100,000 Renong Berhad (Holding company involved
in engineering and construction, financial
services, telecommunication and information
technology). . . . . . . . . . . . . . . . . . . 14,058,917
-------------
34,666,003
-------------
NETHERLANDS 5.6% 695,500 AEGON Insurance Group NV (Insurance
company) . . . . . . . . . . . . . . . . . . . . 25,171,553
120,000 Akzo-Nobel N.V. (Chemical producer) . . . . . . . 14,409,301
1,676,000 Elsevier NV (International publisher of
scientific, professional, business, and
consumer information books). . . . . . . . . . . 21,476,435
160,000 Heineken Holdings N.V. "A" (Brewery) . . . . . . . 23,802,975
605,000 Philips Electronics N.V. (Leading
manufacturer of electrical equipment). . . . . . 29,497,437
229,963 Wolters Kluwer CVA (Publisher) . . . . . . . . . . 21,116,117
-------------
135,473,818
-------------
NORWAY 1.0% 1,823,200 Saga Petroleum AS "A" (Oil and gas
exploration and production). . . . . . . . . . . 23,517,669
-------------
PHILIPPINES 0.5% 4 Philippine Long Distance Telephone Co.
(Telecommunication services) . . . . . . . . . . 265
3,110,926 San Miguel Corp. "B" (Brewery) . . . . . . . . . . 10,984,655
-------------
10,984,920
-------------
SPAIN 3.5% 198,000 Acerinox, S.A (Stainless steel producer) . . . . . 22,518,148
19,800 Acerinox, S.A. (New(e))(d) . . . . . . . . . . . . 2,026,633
147,600 Banco Popular Espanol, S.A. (Retail bank). . . . . 22,881,691
381,000 Compania Telefonica Nacional de
Espana SA (ADR) (Telecommunication
services). . . . . . . . . . . . . . . . . . . . 15,763,875
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
----
15
<PAGE>
SCUDDER INTERNATIONAL FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <S> <C>
163,300 Repsol SA (Integrated oil company) . . . . . . . . 5,117,120
513,000 Repsol SA (ADR). . . . . . . . . . . . . . . . . . 16,287,750
-------------
84,595,217
-------------
SWEDEN 5.2% 798,100 Astra AB "A" (Free) (Pharmaceutical
company) . . . . . . . . . . . . . . . . . . . . 28,606,147
1,400,000 L.M. Ericsson Telephone Co. "B" (ADR)
(Leading manufacturer of cellular
telephone equipment) . . . . . . . . . . . . . . 34,300,000
1,400,000 L.M. Ericsson Telephone Co. "B" (ADR)
Rights (expire 10/23/95)*(d). . . . . . . . . . 1,618,750
330,000 Mo och Domsjo AB "B" (Free)
(Manufacturer of newsprint, paperboard,
and various sawn timber products). . . . . . . . 20,752,771
750,000 S.K.F. AB "B" (Free) (Manufacturer of roller
bearings). . . . . . . . . . . . . . . . . . . . 16,551,157
1,040,000 Skandia Foersaekrings AB (Free)
(Financial conglomerate)*. . . . . . . . . . . . 24,526,002
-------------
126,354,827
-------------
SWITZERLAND 5.1% 27,610 Brown, Boveri & Cie. AG (Bearer)
(Manufacturer of electrical equipment) . . . . . 31,987,705
19,850 Holderbank Financiere Glaris AG (Bearer)
(Cement company) . . . . . . . . . . . . . . . . 15,594,895
99,250 Holderbank Financiere Glaris AG Warrants
(expire 12/20/95)* . . . . . . . . . . . . . . . 120,225
14,737 Nestle SA (Registered) (Food manufacturer) . . . . 15,084,465
14,490 SGS Holdings SA (Bearer) (Trade
inspection company). . . . . . . . . . . . . . . 26,829,851
20,000 Sandoz Ltd. AG (Registered) (Pharmaceutical
company) . . . . . . . . . . . . . . . . . . . . 15,228,207
46,813 Swiss Bank Corp. (Bearer) (Switzerland's
second largest universal bank) . . . . . . . . . 17,902,960
-------------
122,748,308
-------------
THAILAND 1.1% 1,250,000 Bangkok Bank Ltd. (Foreign registered)
(Leading commercial bank, providing full
range of financial services) . . . . . . . . . . 14,046,623
1,500,000 Thai Farmers Bank (Foreign registered)
(Commercial bank). . . . . . . . . . . . . . . . 13,030,484
-------------
27,077,107
-------------
UNITED KINGDOM 10.0% 2,150,000 Argyll Group PLC (Owner and operator of
retail food supermarkets). . . . . . . . . . . . 11,481,504
3,100,000 British Gas PLC (Integrated gas utility) . . . . . 12,979,298
2,842,087 British Petroleum PLC (Major
integrated world oil company). . . . . . . . . . 21,232,659
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- ----
16
<PAGE>
INVESTMENT PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
% of Market
Portfolio Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <S> <C>
1,395,000 Carlton Communications PLC (Television
post production products and services) . . . . . 22,866,829
712,139 De La Rue PLC(Printer of commercial bank
notes and securities). . . . . . . . . . . . . . 10,193,812
2,500,000 Enterprise Oil PLC (Oil and gas exploration
and production). . . . . . . . . . . . . . . . . 14,101,063
9,494,993 Lasmo PLC (Oil production and exploration) . . . . 24,912,597
2,434,625 PowerGen PLC (Electric utility). . . . . . . . . . 21,213,935
1,673,770 RTZ Corp. PLC (Mining and finance company) . . . . 24,395,279
3,089,600 Reuters Holdings PLC (International
news agency) . . . . . . . . . . . . . . . . . . 27,311,527
2,289,596 SmithKline Beecham "A" (Manufacturer of
ethical drugs and healthcare products) . . . . . . 23,115,503
1,435,000 Zeneca Group PLC (Holding company:
manufacturing and marketing of
pharmaceutical and agrochemical
products and specialty chemicals). . . . . . . . 25,878,160
-------------
239,682,166
-------------
Total Common Stocks (Cost $1,822,368,347). . . . . 2,174,683,686
-------------
1.1% PURCHASED OPTIONS
Principal
Amount
- ------------------------------------------------------------------------------------------------------------------------
JPY 8,452,000,000 Put on Japanese Yen, strike price 96, expire
8/15/96. . . . . . . . . . . . . . . . . . . . . 4,361,232
JPY 3,100,000,000 Put on Japanese Yen, strike price 88, expire
7/10/96. . . . . . . . . . . . . . . . . . . . . 3,332,500
JPY 5,600,000,000 Put on Japanese Yen, strike price 91.47,
expire 8/6/96. . . . . . . . . . . . . . . . . . 4,356,800
JPY 10,080,000,000 Put on Japanese Yen, strike price 84.8,
expire 4/11/96 . . . . . . . . . . . . . . . . . 14,822,640
-------------
Total Purchased Options (Cost $10,234,138) . . . . 26,873,172
-------------
- ------------------------------------------------------------------------------------------------------------------------
Total Investment Portfolio -- 100.0%
(Cost $1,970,499,754) (a). . . . . . . . . . . . 2,409,947,139
-------------
-------------
</TABLE>
(a) The cost for federal income tax purposes was $1,991,409,139. At September
30, 1995, net unrealized appreciation for all securities based on tax cost
was $418,538,000. This consisted of aggregate gross unrealized appreciation
for all securities in which there was an excess of market value over tax
cost of $513,912,388 and aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over market value of
$95,374,388.
(b) Security trades in units; however, equivalent shares are represented in the
portfolio.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
----
17
<PAGE>
SCUDDER INTERNATIONAL FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(c) 500 shares = 1 IDR unit (International Depository Receipt) for Korea Asia
Fund.1,000 shares = 1 IDR unit for Korea 1990 Trust and Korea Equity Trust.
(d) Securities valued in good faith by the Valuation Committee of the Board of
Directors. The cost of these securities at September 30, 1995 aggregated
$4,763,228. See Note A of the Notes to Financial Statements.
(e) New shares issued during 1995, eligible for a pro rata share of 1995
dividends.
* Non-income producing security.
Sector breakdown of the Fund's equity securities is noted on page 5.
At September 30, 1995, outstanding written call options were as follows
(Note A):
<TABLE>
<CAPTION>
PRINCIPAL EXPIRATION STRIKE MARKET
AMOUNT DATE PRICE VALUE
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Japanese Yen. . . . . . . JPY 8,452,000,000 Aug. 96 JPY 88.88 2,451,080
Japanese Yen. . . . . . . JPY 5,600,000,000 Aug. 96 JPY 82.62 649,600
Japanese Yen. . . . . . . JPY 10,080,000,000 Apr. 96 JPY 75.00 45,360
Japanese Yen. . . . . . . JPY 3,100,000,000 Jul. 96 JPY 78.25 127,100
-------------
Total outstanding written options (Premiums received $10,234,138). . . . . . . . 3,273,140
-------------
-------------
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Transactions in written call options during the six months ended September 30, 1995 were:
PREMIUMS
PRINCIPAL AMOUNT RECEIVED ($)
-------------------------------------------------
<S> <C> <C>
Outstanding at
March 31, 1995. . . . . . . . . . . . -- --
Contracts written . . . . . . . . . . . JPY 27,232,000,000 10,234,138
-------------------------------------------------
Outstanding at
September 30, 1995. . . . . . . . . . JPY 27,232,000,000 10,234,138
------------------- ----------
------------------- ----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- ----
18
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL STATEMENTS
- ----------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1995
- ----------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C>
Investments, at market (identified cost $1,970,499,754)
(Note A). . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,409,947,139
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,735
Foreign currency holdings, at market (identified cost
$2,185,958) (Note A). . . . . . . . . . . . . . . . . . . . 2,186,512
Other receivables:
Investments sold. . . . . . . . . . . . . . . . . . . . . . 4,310,817
Fund shares sold. . . . . . . . . . . . . . . . . . . . . . 7,817,304
Dividends and interest. . . . . . . . . . . . . . . . . . . 4,573,181
Foreign taxes recoverable . . . . . . . . . . . . . . . . . 3,375,296
---------------
Total assets. . . . . . . . . . . . . . . . . . . . . . . 2,432,211,984
LIABILITIES
Payables:
Investments purchased . . . . . . . . . . . . . . . . . . . $ 1,000,244
Fund shares redeemed. . . . . . . . . . . . . . . . . . . . 1,430,214
Accrued management fee (Note C) . . . . . . . . . . . . . . 1,637,827
Other accrued expenses (Note C) . . . . . . . . . . . . . . 1,222,256
Payable on closed forward foreign currency
exchange contracts (Note A). . . . . . . . . . . . . . . 24,772,197
Written options, at market (premiums
received $10,234,138) (Note A). . . . . . . . . . . . . . 3,273,140
----------------
Total liabilities. . . . . . . . . . . . . . . . . . . . . . 33,335,878
---------------
Net assets, at market value. . . . . . . . . . . . . . . . . . . $ 2,398,876,106
---------------
---------------
NET ASSETS
Net assets consist of:
Accumulated distributions in excess of net
investment income . . . . . . . . . . . . . . . . . . . . $ (2,034,659)
Unrealized appreciation on:
Investments . . . . . . . . . . . . . . . . . . . . . . . 439,447,385
Written options . . . . . . . . . . . . . . . . . . . . . 6,960,998
Foreign currency related transactions . . . . . . . . . . 154,373
Accumulated net realized gain . . . . . . . . . . . . . . . 64,535,138
Capital stock . . . . . . . . . . . . . . . . . . . . . . . 529,357
Additional paid#in capital. . . . . . . . . . . . . . . . . 1,889,283,514
---------------
Net assets, at market value. . . . . . . . . . . . . . . . . . . $ 2,398,876,106
---------------
---------------
NET ASSET VALUE, offering and redemption price per
share ($2,398,876,106 + 52,935,692 shares of
capital stock outstanding, $.01 par value,
100,000,000 shares authorized) $45.32
------
------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
----
19
<PAGE>
SCUDDER INTERNATIONAL FUND
- -------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1995
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends (net of foreign taxes withheld of $2,407,770). . . . . $ 26,252,461
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,838,795
---------------
32,091,256
Expenses:
Management fee (Note C). . . . . . . . . . . . . . . . . . . . . $ 9,663,550
Services to shareholders (Note C). . . . . . . . . . . . . . . . 1,911,106
Custodian and accounting fees (Note C) . . . . . . . . . . . . . 1,297,106
Directors' fees (Note C) . . . . . . . . . . . . . . . . . . . . 38,332
Reports to shareholders. . . . . . . . . . . . . . . . . . . . . 363,331
Auditing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,378
Legal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,497
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,552 13,440,852
-----------------------------------
Net investment income. . . . . . . . . . . . . . . . . . . . . . 18,650,404
---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT TRANSACTIONS
Net realized gain from:
Investments . . . . . . . . . . . . . . . . . . . . . . . . 65,313,772
Foreign currency related transactions . . . . . . . . . . . 100,211 65,413,983
---------------
Net unrealized appreciation (depreciation)
during the period on:
Investments . . . . . . . . . . . . . . . . . . . . . . . . 213,860,163
Written options . . . . . . . . . . . . . . . . . . . . . . 6,960,998
Foreign currency related transactions . . . . . . . . . . . (453,846) 220,367,315
-----------------------------------
Net gain on investment transactions. . . . . . . . . . . . . . . 285,781,298
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . $ 304,431,702
---------------
---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- ----
20
<PAGE>
FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
SEPTEMBER 30, MARCH 31,
INCREASE (DECREASE) IN NET ASSETS 1995 1995
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income. . . . . . . . . . . . . . . . . . . . . . $ 18,650,404 $ 11,123,382
Net realized gain from investment
transactions. . . . . . . . . . . . . . . . . . . . . . . . 65,413,983 47,380,473
Net unrealized appreciation (depreciation) on
investment transactions during the period . . . . . . . . . 220,367,315 (110,709,497)
--------------- ---------------
Net increase (decrease) in net assets
resulting from operations . . . . . . . . . . . . . . . . . 304,431,702 (52,205,642)
--------------- ---------------
Distributions to shareholders from net
realized gains ($2.42 per share). . . . . . . . . . . . . . - (129,363,905)
--------------- ---------------
Fund share transactions:
Proceeds from shares sold. . . . . . . . . . . . . . . . . . . . 249,067,540 718,118,586
Net asset value of shares issued to
shareholders in reinvestment
of distributions. . . . . . . . . . . . . . . . . . . . . . - 21,144,225
Cost of shares redeemed. . . . . . . . . . . . . . . . . . . . . (346,782,106) (663,875,447)
--------------- ---------------
Net increase (decrease) in net assets
from Fund share transactions. . . . . . . . . . . . . . . . (97,714,566) 175,387,364
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS. . . . . . . . . . . . . . . . 206,717,136 (6,182,183)
Net assets at beginning of period. . . . . . . . . . . . . . . . 2,192,158,970 2,198,341,153
--------------- ---------------
NET ASSETS AT END OF PERIOD (including
accumulated distributions in excess
of net investment income of $2,034,659
and $20,685,063, respectively). . . . . . . . . . . . . . . $ 2,398,876,106 $ 2,192,158,970
--------------- ---------------
--------------- ---------------
OTHER INFORMATION
INCREASE (DECREASE) IN FUND SHARES
Shares outstanding at beginning of period. . . . . . . . . . . . 55,183,581 51,177,699
--------------- ---------------
Shares sold. . . . . . . . . . . . . . . . . . . . . . . . . . . 5,795,969 16,848,858
Shares issued to shareholders in
reinvestment of distributions . . . . . . . . . . . . . . . - 2,949,426
Shares redeemed. . . . . . . . . . . . . . . . . . . . . . . . . (8,043,858) (15,792,402)
--------------- ---------------
Net increase (decrease) in Fund shares . . . . . . . . . . . . . (2,247,889) 4,005,882
--------------- ---------------
Shares outstanding at end of period. . . . . . . . . . . . . . . 52,935,692 55,183,581
--------------- ---------------
--------------- ---------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
----
21
<PAGE>
SCUDDER INTERNATIONAL FUND
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
The following table includes selected data for a share outstanding throughout
each period (a) and other performance information derived from the financial
statements.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEARS EMDED MARCH 31,
SEPTEMBER 30, ----------------------------------------------------------------------------
1995 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
--------- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period . . . . . . $39.72 $42.96 $35.69 $34.36 $34.69 $37.00 $34.79 $33.43 $44.05 $36.93 $23.03
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income . . . . .34 .21 .31 .38 .44 .80 .49 .40 .45 .47 .74
Net realized and unrealized
gain (loss) on investment
transactions. . . . . . . . 5.26 (1.03) 7.74 2.64 (.37) (.39) 5.30 4.15 (.86) 13.07 13.70
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations. 5.60 (.82) 8.05 3.02 .07 .41 5.79 4.55 (.41) 13.54 14.44
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Less distributions:
From net investment
income . . . . . . . . . . . - - (.63) (.83) - (.74) (.43) (.13) (.82) (.49) (.41)
In excess of net
investment income . . . . . - - (.06) - - - - - - - -
From net realized gains on
investment transactions. . . - (2.42) (.09) (.86) (.40) (1.98) (3.15) (3.06) (9.39) (5.93) (.13)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total distributions. . . . . . . . - (2.42) (.78) (1.69) (.40) (2.72) (3.58) (3.19) (10.21) (6.42) (.54)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period . . . . . . . . . $45.32 $39.72 $42.96 $35.69 $34.36 $34.69 $37.00 $34.79 $33.43 $44.05 $36.93
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
TOTAL RETURN (%) . . . . . . . . . 14.10** (2.02) 22.69 9.12 .18 1.46 17.08 14.34 (.47) 40.18 64.17
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end of period
($ millions) . . . . . . . . . . 2,399 2,192 2,198 1,180 933 929 783 550 559 791 597
Ratio of operating
expenses to average net
assets (%) . . . . . . . . . . . 1.15* 1.19 1.21 1.26 1.30 1.24 1.18 1.22 1.21 1.09 .99
Ratio of net investment income to
average net assets (%) . . . . . 1.59* .48 .75 1.13 1.25 2.22 1.33 1.20 1.16 1.19 2.60
Portfolio turnover rate (%). . . . 42.7* 46.3 39.9 29.2 50.4 70.1 49.4 48.3 54.8 66.5 36.0
</TABLE>
(a) Based on monthly average shares outstanding during the period.
* Annualized
** Not Annualized
- ----
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
A. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
Scudder International Fund (the "Fund") is a diversified series of Scudder
International Fund, Inc. (the "Corporation"). The Corporation is organized as a
Maryland corporation and is registered under the Investment Company Act of 1940,
as amended, as an open-end, management investment company. The policies
described below are followed consistently by the Fund in the preparation of its
financial statements in conformity with generally accepted accounting
principles.
SECURITY VALUATION. Portfolio securities which are traded on U.S. or foreign
stock exchanges are valued at the most recent sale price reported on the
exchange on which the security is traded most extensively. If no sale occurred,
the security is then valued at the calculated mean between the most recent bid
and asked quotations. If there are no such bid and asked quotations, the most
recent bid quotation is used. Securities quoted on the National Association of
Securities Dealers Automatic Quotation ("NASDAQ") System, for which there have
been sales, are valued at the most recent sale price reported on such system. If
there are no such sales, the value is the high or "inside" bid quotation.
Securities which are not quoted on the NASDAQ System but are traded in another
over-the-counter market are valued at the most recent sale price on such market.
If no sale occurred, the security is then valued at the calculated mean between
the most recent bid and asked quotations. If there are no such bid and asked
quotations, the most recent bid quotation shall be used.
Portfolio debt securities with remaining maturities greater than sixty days are
valued by pricing agents approved by the officers of the Fund, which quotations
reflect broker/dealer-supplied valuations and electronic data processing
techniques. If the pricing agents are unable to provide such quotations, the
most recent bid quotation supplied by a bona fide market maker shall be used.
Short-term investments having a maturity of sixty days or less are valued at
amortized cost.
All other securities are valued at their fair value as determined in good faith
by the Valuation Committee of the Board of Directors. Securities valued in good
faith by the Valuation Committee of the Board of Directors at fair value
amounted to $8,977,487 (.37% of net assets) and have been noted in the
investment portfolio as of September 30, 1995.
----
23
<PAGE>
SCUDDER INTERNATIONAL FUND
- --------------------------------------------------------------------------------
OPTIONS. An option contract is a contract in which the writer of the option
grants the buyer of the option the right to purchase from (call option), or sell
to (put option), the writer a designated instrument at a specified price within
a specified period of time. Certain options, including options on indices, will
require cash settlement by the Fund if the option is exercised. During the
period, the Fund purchased put options and wrote call options on currencies as a
hedge against potential adverse price movements in the value of portfolio
assets.
If the Fund writes an option and the option expires unexercised, the Fund will
realize income, in the form of a capital gain, to the extent of the amount
received for the option (the "premium"). If the Fund elects to close out the
option it would recognize a gain or loss based on the difference between the
cost of closing the option and the initial premium received. If the Fund
purchased an option and allows the option to expire it would realize a loss to
the extent of the premium paid. If the Fund elects to close out the option it
would recognize a gain or loss equal to the difference between the cost of
acquiring the option and the amount realized upon the sale of the option.
The gain or loss recognized by the Fund upon the exercise of a written call or
purchased put option is adjusted for the amount of option premium. If a written
put or purchased call option is exercised the Fund's cost basis of the acquired
security or currency would be the exercise price adjusted for the amount of the
option premium.
The liability representing the Fund's obligation under an exchange traded
written option or investment in a purchased option is valued at the last sale
price or, in the absence of a sale, the mean between the closing bid and asked
price or at the most recent asked price (bid for purchased options) if no bid
and asked price are available. Over-the-counter written or purchased options are
valued using dealer supplied quotations.
When the Fund writes a covered call option, the Fund foregoes, in exchange for
the premium, the opportunity to profit during the option period from an increase
in the market value of the underlying security or currency above the exercise
price. When the Fund writes a put option it accepts the risk of a decline in the
market value of the underlying security or currency below the exercise price.
Over-the-counter options have the risk of the potential inability of
counterparties to meet the terms of their contracts. The Fund's maximum exposure
to purchased options is limited to the premium
- ----
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
initially paid. In addition, certain risks may arise upon entering into option
contracts including the risk that an illiquid secondary market will limit the
Fund's ability to close out an option contract prior to the expiration date and,
that a change in the value of the option contract may not correlate exactly with
changes in the value of the securities or currencies hedged.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
certain banks and broker/dealers whereby the Fund, through its custodian,
receives delivery of the underlying securities, the amount of which at the time
of purchase and each subsequent business day is required to be maintained at
such a level that the market value, depending on the maturity of the repurchase
agreement and the underlying collateral, is equal to at least 100.5% of the
resale price.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS. A forward foreign currency exchange
contract (forward contract) is a commitment to purchase or sell a foreign
currency at the settlement date at a negotiated rate. During the period, the
Fund utilized forward contracts as a hedge in connection with portfolio
purchases and sales of securities denominated in foreign currencies.
Forward contracts are valued at the prevailing forward exchange rate of the
underlying currencies and unrealized gain/loss is recorded daily. Forward
contracts having the same settlement date and broker are offset and any gain
(loss) is realized on the date of offset; otherwise, gain (loss) is realized on
settlement date. Realized and unrealized gains and losses which represent the
difference between the value of the forward contract to buy and the forward
contract to sell are included in net realized and unrealized gain (loss) from
foreign currency related transactions.
Certain risks may arise upon entering into forward contracts from the potential
inability of counterparties to meet the terms of their contracts. Additionally,
when utilizing forward contracts to hedge, the Fund gives up the opportunity to
profit from favorable exchange rate movements during the term of the contract.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Fund are maintained
in U.S. dollars. Foreign currency transactions are translated into U.S. dollars
on the following basis:
----
25
<PAGE>
SCUDDER INTERNATIONAL FUND
- --------------------------------------------------------------------------------
(i) market value of investment securities, other assets and other
liabilities at the daily rates of exchange, and
(ii) purchases and sales of investment securities, dividend and interest
income and certain expenses at the rates of exchange prevailing on the
respective dates of such transactions.
The Fund does not isolate that portion of gains and losses on investments which
is due to changes in foreign exchange rates from that which is due to changes in
market prices of the investments. Such fluctuations are included with the net
realized and unrealized gains and losses from investments.
Net realized and unrealized gain (loss) from foreign currency related
transactions includes gains and losses between trade and settlement dates on
securities transactions, gains and losses arising from the sales of foreign
currency, and gains and losses between the ex and payment dates on dividends,
interest, and foreign withholding taxes.
FEDERAL INCOME TAXES. The Fund's policy is to comply with the requirements of
the Internal Revenue Code which are applicable to regulated investment companies
and to distribute all of its taxable income to its shareholders. The Fund paid
no federal income taxes and no federal income tax provision was required.
From November 1, 1994 through March 31, 1995, the Fund incurred approximately
$1,139,000 of net realized capital losses. As permitted by tax regulations, the
Fund intends to elect to defer these losses and treat them as arising in the
fiscal year ended March 31, 1996.
DISTRIBUTION OF INCOME AND GAINS. Distributions of net investment income are
made annually. During any particular year net realized gains from investment
transactions, in excess of available capital loss carryforwards, would be
taxable to the Fund if not distributed and, therefore, will be distributed to
shareholders annually. An additional distribution may be made to the extent
necessary to avoid the payment of a four percent federal excise tax. Earnings
and profits distributed to shareholders on redemption of Fund shares ("tax
equalization") may be utilized by the Fund, to the extent permissible, as part
of the Fund's dividends paid deduction on its federal income tax return.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax regulations
which may differ from generally accepted accounting
- ----
26
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
principles. The differences primarily relate to investments in forward
contracts, passive foreign investment companies, foreign denominated
investments, and certain securities sold at a loss. As a result, net investment
income (loss) and net realized gain (loss) on investment transactions for a
reporting period may differ significantly from distributions during such period.
Accordingly, the Fund may periodically make reclassifications among certain of
its capital accounts without impacting the net asset value of the Fund.
The Fund uses the identified cost method for determining realized gain or loss
on investments for both financial and federal income tax reporting purposes.
Other. Investment security transactions are accounted for on a trade date basis.
Dividend income and distributions to shareholders are recorded on the ex-
dividend date. Interest income is recorded on the accrual basis.
B. PURCHASES AND SALES OF SECURITIES
- --------------------------------------------------------------------------------
For the six months ended September 30, 1995, purchases and sales of investment
securities (excluding short-term investments) aggregated $503,734,618 and
$461,917,178, respectively.
C. RELATED PARTIES
- --------------------------------------------------------------------------------
Under the Fund's Investment Management Agreement (the "Agreement") with Scudder,
Stevens & Clark, Inc. (the "Adviser"), the Fund agrees to pay to the Adviser a
fee equal to an annual rate of 0.90% on the first $500,000,000 of the Fund's
average daily net assets, 0.85% on the next $500,000,000, 0.80% on the next
$1,000,000,000, and 0.75% of such net assets in excess of $2,000,000,000,
computed and accrued daily and payable monthly. As manager of the assets of the
Fund, the Adviser directs the investments of the Fund in accordance with its
investment objectives, policies, and restrictions. The Adviser determines the
securities, instruments, and other contracts relating to investments to be
purchased, sold or entered into by the Fund. In addition to portfolio management
services, the Adviser provides certain administrative services in accordance
with the Agreement. The Agreement also provides that if the Fund's expenses,
exclusive of taxes, interest, and extraordinary expenses, exceed specified
limits, such excess, up to the amount of the management fee, will be paid by the
Adviser. For the six months ended September 30, 1995, the fee pursuant to the
Agreement amounted to $9,663,550
----
27
<PAGE>
SCUDDER INTERNATIONAL FUND
- --------------------------------------------------------------------------------
which was equivalent to an annual effective rate of 0.83% of the Fund's average
daily net assets.
Scudder Service Corporation ("SSC"), a wholly-owned subsidiary of the Adviser,
is the transfer, dividend paying and shareholder service agent for the Fund.
Included in services to shareholders is $1,552,221 charged to the Fund by SSC
for the six months ended September 30, 1995, of which $293,742 is unpaid at
September 30, 1995.
Effective April 12, 1995, Scudder Fund Accounting Corporation ("SFAC"), a
wholly-owned subsidiary of the Adviser, assumed responsibility for determining
the daily net asset value per share and maintaining the portfolio and general
accounting records of the Fund. For the six months ended September 30, 1995, the
amount charged to the Fund by SFAC aggregated $357,630, of which $126,531 is
unpaid at September 30, 1995.
The Fund pays each Director not affiliated with the Adviser $4,000 annually plus
specified amounts for attended board and committee meetings. For the six months
ended September 30, 1995, Directors' fees aggregated $38,332.
- ----
28
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
TO THE BOARD OF DIRECTORS OF SCUDDER INTERNATIONAL FUND, INC. AND TO THE
SHAREHOLDERS OF SCUDDER INTERNATIONAL FUND:
We have audited the accompanying statement of assets and liabilities of Scudder
International Fund, including the investment portfolio, as of September 30,
1995, and the related statement of operations for the six-month period then
ended, the statements of changes in net assets for the six-month period then
ended, and for the year ended March 31, 1995, and the financial highlights for
the six-month period ended September 30, 1995 and for each of the ten years in
the period ended March 31, 1995. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
September 30, 1995 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Scudder International Fund as of September 30, 1995, the results of its
operations for the six-month period then ended, the changes in its net assets
for the six-month period then ended and for the year ended March 31, 1995, and
the financial highlights for the six-month period ended September 30, 1995 and
for each of the ten years in the period ended March 31, 1995, in conformity with
generally accepted accounting principles.
Boston, Massachusetts COOPERS & LYBRAND L.L.P.
November 14, 1995
----
29
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT PRODUCTS AND SERVICES
The Scudder Family of Funds
-----------------------------------------------------------------------------------------------------------------
<S> <C>
Money Market Income
Scudder Cash Investment Trust Scudder Emerging Markets Income Fund
Scudder U.S. Treasury Money Fund Scudder GNMA Fund
Tax Free Money Market+ Scudder Income Fund
Scudder Tax Free Money Fund Scudder International Bond Fund
Scudder California Tax Free Money Fund* Scudder Short Term Bond Fund
Scudder New York Tax Free Money Fund* Scudder Short Term Global Income Fund
Tax Free+ Scudder Zero Coupon 2000 Fund
Scudder California Tax Free Fund* Growth
Scudder High Yield Tax Free Fund Scudder Capital Growth Fund
Scudder Limited Term Tax Free Fund Scudder Development Fund
Scudder Managed Municipal Bonds Scudder Global Fund
Scudder Massachusetts Limited Term Tax Free Fund* Scudder Global Small Company Fund
Scudder Massachusetts Tax Free Fund* Scudder Gold Fund
Scudder Medium Term Tax Free Fund Scudder Greater Europe Growth Fund
Scudder New York Tax Free Fund* Scudder International Fund
Scudder Ohio Tax Free Fund* Scudder Latin America Fund
Scudder Pennsylvania Tax Free Fund* Scudder Pacific Opportunities Fund
Growth and Income Scudder Quality Growth Fund
Scudder Balanced Fund Scudder Small Company Value Fund
Scudder Growth and Income Fund Scudder Value Fund
The Japan Fund
Retirement Plans and Tax-Advantaged Investments
-----------------------------------------------------------------------------------------------------------------
IRAs 403(b) Plans
Keogh Plans SEP-IRAs
Scudder Horizon Plan+++* (a variable annuity) Profit Sharing and Money Purchase
401(k) Plans Pension Plans
Closed-End Funds#
-----------------------------------------------------------------------------------------------------------------
The Argentina Fund, Inc. The Latin America Dollar Income Fund, Inc.
The Brazil Fund, Inc. Montgomery Street Income Securities, Inc.
The First Iberian Fund, Inc. Scudder New Asia Fund, Inc.
The Korea Fund, Inc. Scudder New Europe Fund, Inc.
Scudder World Income
Opportunities Fund, Inc.
Institutional Cash Management
-----------------------------------------------------------------------------------------------------------------
Scudder Institutional Fund, Inc. Scudder Treasurers Trust(TM)++
Scudder Fund, Inc.
-----------------------------------------------------------------------------------------------------------------
</TABLE>
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.
30
<PAGE>
HOW TO CONTACT SCUDDER
Account Service and Information
- -------------------------------------------------------------------------------
For existing account service and transactions
SCUDDER INVESTOR RELATIONS
1-800-225-5163
For personalized information about your Scudder accounts; exchanges and
redemptions; or information on any Scudder fund
SCUDDER AUTOMATED INFORMATION LINE (SAIL)
1-800-343-2890
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 New York
Boston Portland, OR
Chicago San Diego
Cincinnati San Francisco
Los Angeles Scottsdale
For information on Scudder Treasurers Trust,(TM) an institutional cash
management service for corporations, non-profit organizations and trusts that
uses 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 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.
31
<PAGE>
Celebrating Over 75 Years of Serving Investors
Established in 1919 by Theodore Scudder, Sidney Stevens, and F. Haven Clark,
Scudder, Stevens & Clark was the first independent investment counsel firm in
the United States. Since its birth, Scudder's pioneering spirit and commitment
to professional long-term investment management have helped shape the investment
industry. In 1928, we introduced the nation's first no-load mutual fund. Today
we offer 37 pure no load(TM) funds, including the first international mutual
fund offered to U.S. investors.
Over the years, Scudder's global investment perspective and dedication to
research and fundamental investment disciplines have helped us become one of the
largest and most respected investment managers in the world. Though times have
changed since our beginnings, we remain committed to our long-standing
principles: managing money with integrity and distinction; keeping the interests
of our clients first; providing access to investments and markets that may not
be easily available to individuals; and making investing as simple and
convenient as possible through friendly, comprehensive service.
