[Image] Scudder Latin America Fund Profile [Image]
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The fund profile, a supplement to the full prospectus, is designed as
an easy-to-read summary of fund risks, fees, and objectives. You can
click on any question to link to the Fund's prospectus and get more
information on that topic. Or, if you wish, you can proceed directly
to the Fund's prospectus. Once you have read the prospectus and
considered your investment goals, you can proceed to a Scudder Funds
application.
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Fund Profile
November 12, 1996
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1. What Is The Fund's Objective?
Scudder Latin America Fund seeks to provide long-term capital
appreciation through investment primarily in the securities of Latin
American governments and companies.
2. What Does The Fund Invest In?
The Fund invests primarily (at least 65% of total assets) in the
securities of Latin American issuers. At least 50% of the Fund's total
assets will be invested in Latin American equity securities: common
stock, preferred stock, securities that may be converted into common
stock, depositary receipts and warrants. The Fund seeks to benefit
from economic and political trends emerging throughout Latin America.
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.
The Fund may also invest in debt securities. When the Fund does so,
such securities will generally be unrated or below investment-grade;
that is, rated below Baa by Moody's Investors Service, Inc. or below
BBB by Standard & Poor's, (i.e., "junk bonds").
The Fund intends to allocate investments among at least three
countries at all times. Under present conditions the Fund expects to
focus its investments in Argentina, Brazil, Chile, Mexico and Peru. In
the opinion of the Fund's investment adviser, Scudder, Stevens &
Clark, Inc., these five countries offer the most developed capital
markets in Latin America.
3. What Are The Risks Of Investing In The Fund?
The Fund is susceptible to political and economic factors affecting
issuers in Latin American countries. 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. Emerging market
securities can be more volatile and less liquid than securities in
more developed markets. Foreign securities often have less publicly
available information and are subject to different regulations than
domestic securities. Political events, changes in the perceived
creditworthiness of issuers, higher brokerage costs, fluctuating
national interest rates, foreign taxes and movements in foreign
currencies will affect the value of the Fund's holdings which
determine the Fund's share price. The Fund may incur currency
conversion costs and the strength or weakness of the U.S. dollar
against these currencies may result in fluctuations of the Fund's
share price, which is likely to vary from day to day.
Movements of the stock markets or in the types of securities held in
the Fund's portfolio may affect the Fund's share price. You incur
principal risk when you invest because your shares, when sold, may be
worth more of less than what you paid for them.
Because it is non-diversified, the Fund may invest in a smaller number
of issuers, which will subject it to greater risks than a diversified
fund. Furthermore, the Fund's holdings in unrated securities and
securities rated below investment-grade (i.e., "junk bonds") carry a
greater risk of default and more price volatility than securities
rated investment-grade or above.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking capital growth
and:
o plan to hold your investment for the long-term (at least 5 years
or more),
o can tolerate fluctuations in share price,
o have or plan to have other investments for the benefit of
diversification, and
o understand the risks of investing in foreign securities.
5. What Are The Fund's Expenses And Fees?
There are two kinds of expenses that a shareholder may incur, directly
or indirectly, by investing in a mutual fund. These types of expenses,
as they relate to Scudder Latin America Fund are:
Shareholder transaction expenses -- Expenses charged directly to
your account for various transactions.
Sales Commission to Purchase Shares (Sales Load) None
Commissions to Reinvest Dividends None
Deferred Sales Charge None
Redemption Fee None
Exchange Fee None
Annual Fund operating expenses (after expense maintenance) --
Expenses paid by the Fund before it distributes its net investment
income, expressed as a percentage of the Fund's average daily net
assets. Figures below are for the fiscal year ended October 31,
1995, during which Scudder maintained the total annualized expenses
of the Fund as required by a state imposed expense limitation.
Without the state imposed expense limitation, total expenses would
have amounted to 2.11% including 1.25% for management fees.
Investment management fee (after state imposed 1.22%
expense limitation)
12b-1 fees None
Other expenses 0.86%
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Total Fund operating expenses 2.08%
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Example: Assuming a 5% annual return and redemption at the end of
each period, the total expenses relating to a $1,000 investment
would be:
1 Year 3 Years 5 Years 10 Years
$21 $65 $112 $241
This example assumes reinvestment of all dividends and distributions
and that the total Fund operating expenses listed above remain the
same each year. This example should not be considered a representation
of past or future expenses or return. Actual Fund expenses and return
vary from year to year and may be higher or lower than those shown.
Please note that there is a $5 service fee if you request redemption
proceeds via wire.
6. How Has The Fund Performed Historically?
This chart shows how the Fund has performed since it commenced
operations on December 8, 1992, assuming reinvestment of all
distributions. Performance is historical and may not be indicative of
future results. Total return and principal value will fluctuate.
A BAR CHART WAS INSERTED HERE. THE CAPTION AND DATA FROM THIS CHART ARE
LISTED BELOW:
Total returns for years ended December 31:
1993 74.32%
1994 -9.41
1995 -9.80
BAR CHART ENDS HERE
The Fund's Average Annual Total Return
for the period ended September 30, 1996
One Year 19.46%
Life of Fund 16.91
If the Adviser had not maintained the Fund's expenses, average annual
total return for the one year and life of fund would have been lower.
7. Who Manages The Fund?
The Fund's investment adviser is Scudder, Stevens & Clark, Inc., a
leading provider of U.S. and international investment management for
clients throughout the world. The Fund is managed by a team of Scudder
investment professionals who each play an important role in the Fund's
management process.
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. Tara
C. Kenney, Portfolio Manager, assists with the Fund's research and
investment strategy. Ms. Kenney, who joined the Fund's team in 1996,
has nine years of financial industry experience. Paul Rogers,
Portfolio Manager, also joined the Fund's team in 1996 and is
primarily responsible for research on Latin American corporations. Mr.
Rogers joined Scudder in 1994 and has over 10 years of investment
experience.
8. How Can I Invest?
To make it easy for you to open an account, you may invest by mail,
phone, fax, or in person. The current minimum initial investment is
$1,000 ($500 for IRA's). Effective January 1, 1997, the minimum
initial investment will be $2,500 ($1,000 for IRA's), except that
shareholders may open a regular account with a minimum of $1,000 if an
investment program of at least $100/month is established. After
January 1, 1997, a shareholder who maintains an account balance of
less than $2,500 without establishing an investment program, may be
assessed an annual fee of $10.00, payable to the Fund. You may also
exchange Fund shares free of charge within the Scudder Family of
Funds.
9. How Can I Redeem Shares?
You may redeem shares at the current share price on any business day
by telephone, fax, or mail.
10. When Are Distributions Made?
The Fund typically makes dividends and capital gains distributions, if
any, in December. You may elect to receive distributions in cash or
have them reinvested in additional shares of the Fund.
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 distributions are
taxable as ordinary income.
11. What Services Does Scudder Provide?
As a shareholder, you'll enjoy:
o professional service from representatives who can answer your
questions and execute your transactions
o automated toll-free touchtone access to account information,
share prices and yields, and to perform transactions
o Scudder's quarterly shareholder newsletter, Scudder Perspectives
o regular, informative reports about the performance of your Fund
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[Image]Scudder wants you to make informed investment decisions. This
Fund Profile contains key information about the Fund. If you would
like more information before you invest, please consult the Fund's
accompanying prospectus. For details about the Fund's holdings or
recent investment strategies, please review the Fund's most recent
annual or semiannual report. The reports are free and may be ordered
by calling 1-800-225-2470.
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