This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
Scudder
Pacific Opportunities
Fund
Semiannual Report
April 30, 1996
o Offers opportunities for long-term capital appreciation through investment
primarily in the equity securities of Pacific Basin companies, excluding
Japan.
o A pure no-load(TM) fund with no commissions to buy, sell, or exchange
shares.
<PAGE>
SCUDDER PACIFIC OPPORTUNITIES FUND
CONTENTS
2 In Brief
3 Letter from the Fund's Chairman
4 Performance Update
5 Portfolio Summary
6 Portfolio Management Discussion
9 Investment Portfolio
14 Financial Statements
17 Financial Highlights
18 Notes to Financial
Statements
23 Report of Independent
Accountants
25 Officers and Directors
26 Investment Products
and Services
27 How to Contact
Scudder
IN BRIEF
o Pacific Basin markets provided solid price performance in recent months,
based on strong economic fundamentals and renewed investor interest in the
emerging markets.
o Scudder Pacific Opportunities Fund provided a 9.99% total return for the
six-month period ended April 30, 1996, with help from holdings in Malaysia,
the Philippines, and Indonesia.
o After lagging in the first half of the period, the Fund's performance for
the three months ended April 30 was above the average of its peers,
according to Lipper Analytical Services.
o In coming months we believe that attractive stock valuations in the Pacific
region, combined with strong economic growth, should be a continued positive
for Fund performance.
2
<PAGE>
LETTER FROM THE FUND'S CHAIRMAN
Dear Shareholders,
Pacific Rim markets may have finally turned the corner. After a
disappointing couple of years, strong economic fundamentals and renewed investor
interest in the world's emerging markets have pushed stock prices higher
virtually across the board in Asia.
Although your fund's recent performance is ahead of many of its peers,
some shareholders have expressed concern that the Fund has lagged over the
longer-term. This important issue deserves some consideration. As you know, the
Fund seeks capital appreciation by investing in a universe that includes Asia's
smaller, developing markets. These are not always the first to attract
investment capital during bull markets but are the fastest growing and, in our
estimation, likely to provide the greatest investment opportunity over time.
Performance comparisons among Asian funds are difficult because so few Asian
funds are alike. Lipper's Pacific Region category, for example, includes funds
that invest solely in India and several that restrict their investments to Hong
Kong. Currently, your Fund has investments in 13 countries, including a small
number of U.S. companies with substantial Asian business. We believe this
diversification adds value, since not all Asian markets are likely to rise and
fall at the same time.
The attached report summarizes our strategy and investment performance
over the period. It offers an appraisal of where we have added value and of our
disappointments. Our long-term objective is to deliver superior performance by
uncovering the values in the markets and avoiding the disappointments through
thoughtful fund research.
In closing, we would like to take this opportunity to announce that on
May 8, 1996, we introduced an exciting addition to the Scudder family of funds:
Scudder Emerging Markets Growth Fund. The Fund is designed to provide long-term
growth of capital by investing in not only the Pacific Rim, but also Latin
America, Eastern Europe, and other developing regions of the world. For more
information about Scudder Emerging Markets Growth Fund and other Scudder
products and services, please see page 26. As always, feel free to contact a
Scudder Investor Services representative whenever you have questions about
Scudder Pacific Opportunities Fund or your Scudder account.
Sincerely,
/s/Edmond D. Villani
Edmond D. Villani
Chairman,
Scudder Pacific Opportunities Fund
3
<PAGE>
SCUDDER PACIFIC OPPORTUNITIES FUND
PERFORMANCE UPDATE as of April 30, 1996
- -----------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- -----------------------------------------------------------------
SCUDDER PACIFIC OPPORTUNITIES FUND
- ----------------------------------------
Total Return
Period Growth --------------
Ended of Average
4/30/96 $10,000 Cumulative Annual
- -------- ------- ---------- ------
1 Year $11,311 13.11% 13.11%
Life of
Fund* $14,454 44.54% 11.46%
MSCI ALL COUNTRY COMBINED
ASIA FREE INDEX (EXCLUDING JAPAN)
- --------------------------------------
Total Return
Period Growth --------------
Ended of Average
4/30/96 $10,000 Cumulative Annual
- -------- ------- ---------- ------
1 Year $12,342 23.42% 23.42%
Life of
Fund* $19,977 99.77% 23.09%
MSCI PACIFIC INDEX (EXCLUDING JAPAN)
- --------------------------------------
Total Return
Period Growth --------------
Ended of Average
4/30/96 $10,000 Cumulative Annual
- -------- ------- ---------- ------
1 Year $12,445 24.45% 24.45%
Life of
Fund* $19,600 96.00% 22.43%
*The Fund commenced operations on
December 8, 1992. Index comparisons
begin December 31, 1992.
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:
Scudder Pacific Opportunities Fund
Year Amount
- ----------------------
12/92* $10,000
4/93 $11,019
10/93 $13,542
4/94 $13,498
10/94 $14,757
4/95 $12,811
10/95 $13,174
4/96 $14,490
MSCI All Country Combined Asia Free Index
(excluding Japan)
Year Amount
- ----------------------
12/92* $10,000
4/93 $11,910
10/93 $16,472
4/94 $16,806
10/94 $19,063
4/95 $16,186
10/95 $17,131
4/96 $19,977
MSCI Pacific Index
(excluding Japan)
Year Amount
- ----------------------
12/92* $10,000
4/93 $11,583
10/93 $15,352
4/94 $15,544
10/94 $17,031
4/95 $15,750
10/95 $16,615
4/96 $19,600
The Morgan Stanley Capital International (MSCI) All Country
Combined Asia Free Index is an unmanaged capitalization-weighted
measure of stock markets in the Pacific Region, excluding
Japan. Index returns assume dividends reinvested 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 APRIL 30
1993* 1994 1995 1996
-------------------------------
NET ASSET VALUE... $13.19 $16.08 $15.17 $17.05
INCOME DIVIDENDS.. $ -- $ .08 $ .10 $ .10
CAPITAL GAINS
DISTRIBUTIONS..... $ -- $ .01 $ -- $ --
FUND TOTAL
RETURN (%)........ 9.92 22.49 -5.09 13.11
INDEX TOTAL
RETURN (%)........ 19.10 41.11 -3.69 23.42
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. If
the Adviser had not temporarily capped expenses, the average annual
total return for the Fund for the one year, five year, and life of Fund
periods would have been lower.
4
<PAGE>
PORTFOLIO SUMMARY as of April 30, 1996
- ---------------------------------------------------------------------------
DIVERSIFICATION (Excludes 4% Cash Equivalents)
- ---------------------------------------------------------------------------
Hong Kong 19%
Singapore 13% The Fund's strong
Malaysia 13% position in Indonesia
Indonesia 12% helped boost
Thailand 10% performance during the
Philippines 8% period.
Australia 7%
Other 18%
----
100%
====
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- --------------------------------------------------------------------------
QUALITY (Excludes 4% Cash Equivalents)
- --------------------------------------------------------------------------
Financial 35%
Manufacturing 13%
Construction 12% The large commitment to
Consumer Staples 7% financial stocks reflects the
Energy 7% importance of financing in
Metals and Minerals 6% Asia, given the scope of
Service Industries 5% infrastructure development
Health 3% and other projects.
Media 3%
Other 9%
----
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. FIRST PACIFIC CO., LTD.
International management and investment company in Hong Kong
2. HUTCHISON WHAMPOA, LTD.
Container terminal and real estate company in Hong Kong
3. UNITED ENGINEERS MALAYSIA
Malaysian holding company involved in expressway operations
project management, engineering and construction
4. OVERSEAS UNION BANK LTD.
Leading bank group in Singapore
5. ASIA PULP & PAPER CO., LTD.
Producer of pulp and paper in Singapore
6. HSBC HOLDINGS, LTD.
Bank in Hong Kong
7. DEVELOPMENT BANK OF SINGAPORE
Banking and financial services in Singapore
8. TELEVISION BROADCASTS, LTD.
Television broadcasting in Hong Kong
9. HANG SENG BANK, LTD.
Commercial banking and related financial services in Hong Kong
10. HM SAMPOERNA
Indonesian tobacco company
The Fund's top holding outperformed the overall Hong Kong stock market
by nearly 20% during the period.
- -----------------------------------------------------------------------
For more complete details about the Fund's Investment Portfolio,
see page 9.
A monthly Investment Portfolio Summary and quarterly Portfolio Holdings
are available upon request.
5
<PAGE>
PORTFOLIO MANAGEMENT DISCUSSION
Dear Shareholders,
After two years of disappointing returns, Pacific Rim markets are inching
back. Attracted to some of the strongest economic growth in the world, many
investors have taken profits in the United States and started buying Asian
stocks again, sparking market rallies virtually across the board. Scudder
Pacific Opportunities Fund returned 9.99% for the six-month period ended April
30, 1996, based on a $1.46 increase in net asset value to $17.05 per share. The
unmanaged Morgan Stanley Capital International All Country Combined Asia Free
(excluding Japan) Index returned a comparatively strong 16.61% due in part to
its larger weighting in Hong Kong and Malaysia, two of the period's
best-performing markets.
Hits and Misses
The portfolio benefited during the period from its holdings in Indonesia,
the Philippines, and India. Stock selection added value in Hong Kong, as one of
our largest holdings, First Pacific, outperformed the Hang Seng by 19%.
Similarly, in Thailand our holdings performed strongly. Our holdings in Taiwan,
which have done well over a longer period, did not match the strong performance
of the broader market, which rose 32% in U.S. dollar terms over the past six
months. Our position in South Korea -- the only market that declined during the
period -- and our early underweighting of Malaysia (up 28%) also held back Fund
performance. A more detailed discussion of key markets follows.
Malaysia
Malaysia's meteoric stock market rise confounded consensus opinion. At the
end of 1995, Malaysia appeared vulnerable to rampant wage inflation, a widening
current account deficit, and currency weakness. But this year, government
measures to counteract economic overheating began to take hold. Current account
numbers announced in late February, together with signs of a somewhat easier
labor market, suggested improvement. Sentiment made a U-turn, the currency
strengthened, and the equity market gained. Interestingly, it was local buying
that lifted Malaysian stocks through much of the period, with foreign investors
capitulating belatedly. Although we added Malaysian stocks to the portfolio as
signs of an improved economic environment appeared, on average our Malaysian
position remained underweight, with holdings concentrated in finance and civil
engineering.
6
<PAGE>
The Philippines
This stock market returned 11% to dollar-based investors despite rising
inflation. We have been bullish on the Philippines and remain so. Fundamental
attractions include exports in excess of imports, a fiscal surplus, and higher
economic growth this year versus 1995. We believe inflation -- largely
attributable to rising food prices in the wake of various natural disasters last
year -- is controllable, and that interest rates will fall. The political
situation remains stable, and structural reforms and deregulation should enhance
the corporate earnings environment. Increasingly a magnet for direct foreign
investment, the Philippines boasts cheap real estate, an abundant and highly
literate, English-speaking work force; and a pivotal location within the booming
East Asian region. Our portfolio holdings remain focused on infrastructure
(power, water, transportation, cement), home building, retail, and real estate
development -- all areas benefiting from the country's favorable economic
climate.
Indonesia
Indonesian stocks returned 28% to dollar-based investors, making
Jakarta the second-best performing market in the region. Our large weighting
(12% of equity holdings as of April 30) reflects our positive view on the
country's strong corporate profit growth, solid economic underpinnings, and the
increased liquidity in Indonesian stocks. At the same time, we are watching the
political situation closely. A renewed incidence of "sweetheart" deals parceled
out to Suharto family members raises a caution flag for business openness and
political cooperation. This concern, together with the market's strong
performance, has led us to trim select holdings. Recognizing political risk as
an important feature of the Indonesian scene, our long-term view remains
positive. We see large commitments of foreign direct investment already in the
pipeline, which will add a tremendous boost to the (already good) fundamentals
of the Indonesian economy over the next few years.
Hong Kong
The Hong Kong bourse returned 16% to U.S. dollar-based investors during the
period, despite much interim volatility. Factors behind the market's gain
included renewed liquidity as investment money poured into the region, of which
Hong Kong typically is the first port of call. Also, the market benefited from
expectations of lower interest rates in China, which we believe will be narrowly
targeted, disappointing those looking for a sudden rise in liquidity. Negatives
7
<PAGE>
for the market during the period included a decline in real estate related
stocks in March when hopes of a U.S. interest rate cut were dashed, and
indications that overall corporate profit growth is slowing. China's war games
off the Taiwan Straits also cast a shadow. We retain a cautious stance on Hong
Kong, given the uncertainties surrounding reversion of sovereignty.
1996 and Beyond
Looking forward, we see a mixture of factors driving Pacific Basin markets.
On the negative side are potential downward revisions of earnings expectations,
rising political uncertainties as 1997 approaches and China flexes its muscles,
and rising current account deficits in some countries. On the positive side are
stocks with attractive valuations (despite recent strength) and high economic
growth relative to other regions. Overall, we are optimistic that Pacific Rim
markets will continue to reward investors this year.
Sincerely,
Your Portfolio Management Team
/s/Elizabeth J. Allan /s/Nicholas Bratt
Elizabeth J. Allan Nicholas Bratt
/s/Joyce E. Cornell
Joyce E. Cornell
8
<PAGE>
INVESTMENT PORTFOLIO as of April 30, 1996
<TABLE>
<CAPTION>
% of Principal Market
Portfolio Amount ($) Value ($)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
4.2% REPURCHASE AGREEMENT
17,687,000 Repurchase Agreement with Donaldson,
Lufkin & Jenrette dated 4/30/96 at 5.32%
to be repurchased at $17,689,614 on 5/1/96,
collateralized by a $17,614,000 U.S. Treasury
Note, 5.375%, 11/30/97 (Cost $17,687,000) ....... 17,687,000
-----------
8.4% CONVERTIBLE BONDS
India 0.9% 3,865,000 Jindal, 4.25%, 3/31/99 (Steel manufacturer) ....... 3,613,775
-----------
Korea 1.0% 3,320,000 Ssangyong Cement Industrial Co., Ltd.,
3%, 12/31/05 (Major cement producer) ........... 4,116,800
-----------
Malaysia 3.4% 746,000 Renong Bhd. (ICULS), 4%, 5/21/01 (Holding
company involved in engineering and
construction, financial services,
telecommunication and information
technology) (b) ................................. 317,129
11,745,000 United Engineers Malaysia, 2%, 3/01/04
(Holding company involved in expressway
operations, project management, engineering
and construction) ................................ 13,859,100
-----------
14,176,229
-----------
Philippines 1.9% 3,949,000 AYALA International Finance Co., 3%,
6/8/00 (Industrial conglomerate) ................. 4,936,250
2,618,000 MBTC International Finance Co., 2.75%,
9/10/00 (Varied financial services) .............. 3,089,240
-----------
8,025,490
-----------
Taiwan 1.2% 5,940,000 TECO Electric & Machinery, 2.75%, 4/15/04
(Manufacturer of household appliances and
computer products) ............................... 4,945,050
-----------
Total Convertible Bonds (Cost $36,368,317) ........ 34,877,344
-----------
87.4% COMMON STOCKS
Shares
-----------------------------------------------------------------------------
Australia 6.9% 2,947,643 Ampol Exploration Ltd. (Oil and gas exploration
company) ......................................... 10,073,802
978,507 Australia & New Zealand Banking Group Ltd.
(General trading and savings bank) ............... 4,674,087
308,547 Coca Cola Amatil Ltd. (Soft drink bottler and
distributor) ..................................... 3,245,870
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
SCUDDER PACIFIC OPPORTUNITIES FUND
<TABLE>
<CAPTION>
% of Market
Portfolio Shares Value ($)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
706,400 National Australia Bank, Ltd. (Commercial bank) .... 6,337,910
1,443,300 Pioneer International Ltd. (Producer of
concretes, asphalt and other building
materials) ....................................... 4,388,305
-----------
28,719,974
-----------
China 0.5% 225,800 China Yuchai International Ltd. (Holding
company which manufactures and sells
diesel truck engines) ........................... 2,173,325
-----------
Hong Kong 18.3% 200 China Light & Power Co., Ltd. (Electric utility) ... 941
14,212,000 China Resources Enterprises Ltd. (Property
investment and holding company) .................. 8,818,771
11,080,789 First Pacific Co., Ltd. (International
management and investment company) ............... 14,754,331
798,726 HSBC Holdings Ltd. (Bank) .......................... 11,925,907
1,031,000 Hang Seng Bank Ltd. (Commercial banking
and related financial services) .................. 10,462,607
2,306,000 Hutchison Whampoa, Ltd. (Container terminal
and real estate company) ......................... 14,309,094
1,842,800 Jinhui Shipping and Transportation Ltd.
(Operator of cargo fleet of ships transporting
steel, iron ore, non-ferrous metals and
agricultural products) ........................... 1,750,660
475,500 Swire Pacific Ltd. "A" (General trading and
real estate company) ............................. 4,057,010
2,635,000 Television Broadcasts, Ltd. (Television
broadcasting) .................................... 10,559,757
-----------
76,639,078
-----------
India 4.0% 222,015 Bajaj Auto (GDR) (Maker of two and
three wheel vehicles) ............................ 7,937,036
366,920 Ranbaxy Laboratories (GDR)
(Pharmaceutical company) ......................... 8,714,350
-----------
16,651,386
-----------
Indonesia 11.8% 638,400 Asia Pacific Resources International Holdings
Ltd. (Manufacturer of rayon fiber for Asian
textile markets, owner of world's leading
paper pulp mill) ................................. 4,548,600
6,288,000 Bakrie & Brothers (Manufacturer of industrial
steel products, steel pipes, corrugated
sheet iron, asbestos and fiber cements) .......... 10,257,308
941,500 HM Sampoerna (Foreign registered)
(Tobacco company) ................................ 10,407,223
3,023,500 Indorama Synthetics (Foreign registered)
(Producer of polyester fiber, yarn and fabric) ... 9,799,281
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
INVESTMENT PORTFOLIO
<TABLE>
<CAPTION>
% of Principal Market
Portfolio Shares Value ($)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1,214,000 Jaya Real Properties (Foreign registered)
(Property developer) ............................. 4,221,249
1,347,000 Kalbe Farma (Foreign registered)
(Pharmaceutical producer and distributor) ........ 3,903,091
1,265,250 Modern Photo Film Co. (Foreign registered)
(Photographic film distributor) .................. 6,246,136
-----------
49,382,888
-----------
Korea 4.1% 136,900 Korea Electric Power Co. (Electric utility) ........ 5,787,356
35,500 Korea Electric Power Corp. (ADR) ................... 985,125
3,680 Korea Mobile Telecom (Mobile
telecommunication company) (b) ................... 5,156,019
47,530 Pohang Iron & Steel Co., Ltd. (Leading steel
producer) (b) .................................... 4,507,181
1,413 Samsung Electronics Co., Ltd. (Non-voting)
(GDS) (Major electronics manufacturer) ........... 57,933
12,511 Samsung Electronics Co., Ltd. (Non-voting)
(GDS) (New (c)) .................................. 494,185
12 Samsung Electronics Co., Ltd.
(Major electronics manufacturer) (New (c)) ....... 1,596
3,996 Samsung Heavy Industries Co., Ltd.
(Machinery manufacturer) ......................... 84,721
387 Samsung Heavy Industries Co., Ltd. (New (c)) ....... 7,485
-----------
17,081,601
-----------
Malaysia 8.6% 384,000 AMMB Holdings Bhd. (Holding company for
Arab Malaysian Merchant Bank Bhd. which
provides financial, insurance and investment
services) ........................................ 5,813,515
1,210,000 Arab-Malaysian Corp. (Investment holding
company with interests in financial services,
infrastructure and property) ..................... 4,901,143
563,000 Malayan Banking Bhd. (Leading banking and
financial services group) ........................ 5,486,625
2,018,000 Petronas Gas Bhd. (Natural gas producer,
processor and distributor) ....................... 8,902,346
3,632,000 Renong Bhd. (Holding company involved in
engineering, construction, financial
services, telecommunication and information
technology) ...................................... 6,321,588
466,250 Renong Bhd. Warrants* (b) .......................... 125,767
2,587,000 TA Enterprises Bhd. (Investment holding
company involved in securities brokerage,
property development, venture capital and
financing) ....................................... 4,461,239
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
SCUDDER PACIFIC OPPORTUNITIES FUND
<TABLE>
<CAPTION>
% of Principal Market
Portfolio Shares Value ($)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
50,000 Time Engineering Bhd. (Conglomerate: project
engineering, power production,
telecommunication and electronic data
services) ........................................ 146,381
-----------
36,158,604
-----------
New Zealand 0.9% 885,400 Telecom Corp. of New Zealand
(Telecommunication services) ..................... 3,756,645
-----------
Philippines 5.1% 14,973,100 Aboitiz Equity Ventures Inc. (Conglomerate:
electricity, infrastructure, shipbuilding) ....... 2,917,952
1,378,060 AYALA Corp. "B" (Industrial conglomerate) .......... 1,948,346
2,064,400 Bacnotan Cement Corp. (Producer of
portland and pozzolan cements) ................... 1,755,174
6,605,400 C&P Homes, Inc. (Home construction
company) ......................................... 5,679,079
1,257,960 First Philippine Holdings Corp. "B" (Holding
company involved in electric power
distribution, construction services and
passenger bus transportation) ................... 2,860,092
13,214,000 SM Prime Holdings Corp. (Leader in
commercial center operations) ................... 3,837,463
16,711,800 Southeast Asia Cement Holdings, Inc.
(Cement producer) ................................ 2,458,557
-----------
21,456,663
-----------
Singapore 12.5% 995,800 Asia Pulp & Paper Co., Ltd. (Producer of pulp
and paper) ....................................... 11,949,600
964,000 City Developments Ltd. (Developer of residential,
industrial, retail and investment properties,
owner and operator of hotels) .................... 8,436,286
846,000 Development Bank of Singapore (Foreign
Registered) (Banking and financial services) ..... 10,714,194
585,000 Oversea-Chinese Banking Corp., Ltd.
(Foreign Registered) (Provider of banking
and financial services) .......................... 8,033,084
1,661,000 Overseas Union Bank Ltd. (Leading bank
group) ........................................... 12,881,466
-----------
52,014,630
-----------
Taiwan 2.4% 323,100 ROC Taiwan Fund (Investment company) ............... 3,473,325
1,738,000 Taiwan Semiconductor Manufacturing Co.
(Manufacturer of integrated circuits and
other semiconductor devices) ..................... 6,587,694
-----------
10,061,019
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
INVESTMENT PORTFOLIO
<TABLE>
<CAPTION>
% of Principal Market
Portfolio Shares Value ($)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Thailand 9.8% 285,500 Ban Pu Coal Public Co., Ltd. (Foreign
registered) (Leading miner of sub-bituminous
coal in southeast Asia) .......................... 7,600,515
411,800 Bangkok Bank Ltd. (Foreign registered)
(Leading commercial bank) ........................ 5,970,835
545,300 PTT Exploration and Production Co., Ltd.
(Foreign registered) (Petroleum refinery) ........ 7,604,065
149,400 Siam Cement Co., Ltd. (Foreign registered)
(Construction materials and industrial
conglomerate) .................................... 7,694,167
1,428,850 TPI Polene Co., Ltd. (Foreign registered)
(Producer and distributor of low density
polyethylene plastic pellets) .................... 7,868,086
363,000 Thai Farmers Bank (Foreign registered)
(Commercial bank) ................................ 4,170,348
-----------
40,908,016
-----------
United States 2.5% 233,400 Freeport McMoRan Copper & Gold, Inc. "A"
(U.S. company mining in Indonesia) ............... 7,381,275
262,285 Pacific Basin Bulk Shipping Ltd. (Shipping
company specializing in the handysize dry
bulk carrier segment in the Pacific region) ...... 2,819,564
75,300 Pacific Basin Bulk Shipping Ltd. Warrants*
(expire 9/30/99) ................................. 47,063
-----------
10,247,902
-----------
Total Common Stocks (Cost $313,451,227) 365,251,731
-----------
- ----------------------------------------------------------------------------------------------------------
Total Investment Portfolio - 100.0%
(Cost $367,506,544) (a) 417,816,075
===========
</TABLE>
(a) The cost for federal income tax purposes was $367,506,544. At
April 30, 1996, net unrealized appreciation for all securities
based on tax cost was $50,309,531. This consisted of aggregate
gross unrealized appreciation for all securities in which there
was an excess of market value over tax cost of $60,589,820 and
aggregate gross unrealized depreciation for all securities in
which there was an excess of tax cost over market value of
$10,280,289.
(b) Securities valued in good faith by the Valuation Committee of the
Board of Directors. The cost of these securities at April 30,
1996 aggregated $8,730,460. See Note A of the Notes to Financial
Statements.
(c) New shares issued during 1996, eligible for a pro rata share of
1996 dividends.
* Non-income producing security.
Sector breakdown of the Fund's equity securities is noted on page
5.
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
SCUDDER PACIFIC OPPORTUNITIES FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1996
- --------------------------------------------------------------------------------
ASSETS
Investments, at market (identified cost $367,506,544)
(Note A) ......................................... $ 417,816,075
Foreign currency holdings, at market
(identified cost $4,919) (Note A) ................ 4,890
Receivables:
Investments sold ................................. 4,318,742
Dividends and interest ........................... 1,045,002
Fund shares sold ................................. 437,393
Foreign taxes recoverable ........................ 21,376
Deferred organization expense (Note A) .............. 18,627
-------------
Total assets ..................................... 423,662,105
LIABILITIES
Payables:
Due to custodian bank ............................ $ 17,358
Investments purchased ............................ 2,116,326
Fund shares redeemed ............................. 2,882,225
Accrued management fee (Note C) .................. 379,957
Other accrued expenses (Note C) .................. 343,496
-----------
Total liabilities ................................ 5,739,362
-------------
Net assets, at market value ......................... $ 417,922,743
=============
NET ASSETS
Net assets consist of:
Accumulated net investment loss .................. $ (543,878)
Unrealized appreciation (depreciation) on:
Investments ................................... 50,309,531
Foreign currency related transactions ......... (146,056)
Accumulated net realized loss .................... (10,798,445)
Capital stock .................................... 245,122
Additional paid-in capital ....................... 378,856,469
-------------
Net assets, at market value ......................... $ 417,922,743
=============
NET ASSET VALUE, offering and redemption price per
share ($417,922,743 24,512,174 shares of
capital stock outstanding, $.01 par value,
100,000,000 shares authorized) ................... $ 17.05
=============
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
FINANCIAL STATEMENTS
STATEMENT OF OPERATIONS
Six Months Ended April 30, 1996
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends (net of foreign taxes withheld of $169,455) $ 2,222,455
Interest ............................................ 806,344
------------
3,028,799
Expenses:
Management fee (Note C) .............................$ 2,171,698
Services to shareholders (Note C) ................... 595,074
Custodian and accounting fees (Note C) .............. 501,814
Directors' fees and expenses (Note C) ............... 31,017
Reports to shareholders ............................. 97,942
Auditing ............................................ 50,140
Legal ............................................... 7,687
Registration expense ................................ 18,064
Amortization of organization expense (Note A) ....... 5,797
Other ............................................... 30,200 3,509,433
------------ ------------
Net investment loss ................................. (480,634)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT TRANSACTIONS
Net realized gain (loss) from:
Investments ...................................... 5,403,223
Foreign currency related transactions ............ (212,524) 5,190,699
------------
Net unrealized appreciation (depreciation) during
the period on:
Investments ...................................... 33,201,061
Foreign currency related transactions ............ (142,115) 33,058,946
------------ ------------
Net gain on investment transactions ................. 38,249,645
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 37,769,011
============
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
SCUDDER PACIFIC OPPORTUNITIES FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Year
Ended Ended
April 30, October 31,
Increase (Decrease) in Net Assets 1996 1995
- --------------------------------------------------------------------------------
Operations:
Net investment income (loss) ................. $ (480,634) $ 2,715,584
Net realized gain (loss) from investment
transactions ............................... 5,190,699 (10,226,019)
Net unrealized appreciation (depreciation)
on investment transactions during
the period ................................. 33,058,946 (43,781,152)
------------- -------------
Net increase (decrease) in net assets
resulting from operations .................. 37,769,011 (51,291,587)
------------- -------------
Distributions to shareholders from:
Net investment income ($.10 and
$.10 per share, respectively) ............ (2,376,933) (2,548,920)
Fund share transactions:
Proceeds from shares sold .................... 171,540,769 224,335,340
Net asset value of shares issued to
shareholders in reinvestment of
distributions .............................. 2,101,548 2,255,971
Cost of shares redeemed ...................... (174,676,808) (288,337,055)
------------- -------------
Net decrease in net assets from
Fund share transactions .................... (1,034,491) (61,745,744)
------------- -------------
INCREASE (DECREASE) IN NET ASSETS ............ 34,357,587 (115,586,251)
Net assets at beginning of period ............ 383,565,156 499,151,407
------------- -------------
NET ASSETS AT END OF PERIOD (including
accumulated net investment loss of
$543,878 and undistributed net
investment income of $2,313,689) ........... $ 417,922,743 $ 383,565,156
============= =============
OTHER INFORMATION
INCREASE (DECREASE) IN FUND SHARES
Shares outstanding at beginning of period .... 24,595,415 28,405,889
------------- -------------
Shares sold .................................. 10,616,230 14,244,117
Shares issued to shareholders in
reinvestment of distributions .............. 133,516 142,964
Shares redeemed .............................. (10,832,987) (18,197,555)
------------- -------------
Net decrease in Fund shares .................. (83,241) (3,810,474)
------------- -------------
Shares outstanding at end of period .......... 24,512,174 24,595,415
============= =============
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
FINANCIAL HIGHLIGHTS
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
<TABLE>
<CAPTION>
For the Period
Six Months December 8, 1992
Ended Years Ended October 31, (commencement
April 30, ----------------------- of operations) to
1996 1995 1994 October 31, 1993
---------- ----------------------- ----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period .................. $ 15.59 $ 17.57 $ 16.21 $ 12.00
------- -------- ------- -------
Income from investment operations:
Net investment income (loss) (a) .................... (.02) .10 .04 .04
Net realized and unrealized gain (loss)
on investment transactions ......................... 1.58 (1.98) 1.41 4.17
------- -------- ------- -------
Total from investment operations ...................... 1.56 (1.88) 1.45 4.21
------- -------- ------- -------
Less distributions from:
Net investment income ............................... (.10) (.10) (.08) --
Net realized gains on investment transactions ....... -- -- (.01) --
------- -------- ------- -------
Total distributions ................................... (.10) (.10) (.09) --
------- -------- ------- -------
Net asset value, end of period ........................ $ 17.05 $ 15.59 $ 17.57 $ 16.21
======= ======== ======= =======
TOTAL RETURN (%) ...................................... 9.99** (10.73) 8.97 35.08**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period ($ millions) ................ 418 384 499 270
Ratio of operating expenses, net to average daily
net assets (%) (a) .................................. 1.79* 1.74 1.81 1.75*
Ratio of net investment income (loss) to average
daily net assets (%) ................................ (.24)* .65 .28 1.41*
Portfolio turnover rate (%) ........................... 103.1* 64.0 38.5 9.9*
Average commission rate paid (b) ...................... $ .0167 $ -- $ -- $ --
<FN>
(a) Reflects a per share amount of management
fee and other fees not imposed by the Adviser of .. $ -- $ -- $ -- $ .03
Operating expense ratio before expense
reductions (%) .................................... -- -- -- 2.90*
(b) Average commission rate paid per share of portfolio securities is calculated
for fiscal years beginning on or after September 1, 1995.
* Annualized
** Not annualized
</FN>
</TABLE>
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS
A. Significant Accounting Policies
- --------------------------------------------------------------------------------
Scudder Pacific Opportunities Fund (the "Fund") is a non-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 Fund's financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management estimates.
The policies described below are followed consistently by the Fund in the
preparation of it's financial statements.
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 $10,106,096 (2.42% of net assets) and have been noted in the
investment portfolio as of April 30, 1996.
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Their values have been estimated by the Board of Directors in the absence of
readily ascertainable market values. However, because of the inherent
uncertainty of valuation, those estimated values may differ significantly from
the values that would have been used had a ready market for the securities
existed, and the difference could be material.
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:
19
<PAGE>
SCUDDER PACIFIC OPPORTUNITIES FUND
(i) market value of investment securities, other assets and 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.
Accordingly, the Fund paid no federal income taxes, and no federal income tax
provision was required.
At October 31, 1995, the Fund had a net tax basis capital loss carryforward of
approximately $16,000,000, which may be applied against any realized net taxable
capital gains of each succeeding year until fully utilized or until October 31,
2002 ($3,200,000) and October 31, 2003 ($12,800,000), the respective expiration
dates, whichever occurs first.
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.
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 principles. These
differences primarily relate to investments in passive foreign investment
companies. As a result, net investment income
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(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.
Organization Costs. Costs incurred by the Fund in connection with its
organization and initial registration of shares have been deferred and are being
amortized on a straight-line basis over a five-year period.
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. All original issue discounts are accreted for both tax and
financial reporting purposes. Interest income is recorded on the accrual basis.
B. PURCHASES AND SALES OF SECURITIES
- --------------------------------------------------------------------------------
For the six months ended April 30, 1996, purchases and sales of investment
securities (excluding short-term investments) aggregated $195,286,845 and
$196,157,405, respectively.
C. RELATED PARTIES
- -------------------------------------------------------------------------------
Under the Investment Management Agreement (the "Management Agreement") with
Scudder, Stevens & Clark, Inc. (the "Adviser"), 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 Management Agreement. The
management fee payable under the Management Agreement is equal to an annual rate
of 1.10% of the Fund's average daily net assets, computed and accrued daily and
payable monthly. The Management Agreement provides that if the Fund's 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 April 30, 1996, the fee
pursuant to the Agreement amounted to $2,171,698.
21
<PAGE>
SCUDDER PACIFIC OPPORTUNITIES FUND
Scudder Service Corporation ("SSC"), a subsidiary of the Adviser, is the
transfer, dividend paying and shareholder service agent for the Fund. For the
six months ended April 30, 1996, the amount charged to the Fund by SSC
aggregated $443,025, of which $72,262 is unpaid at April 30, 1996.
Scudder Trust Company ("STC"), a subsidiary of the Adviser, provides
recordkeeping and other services in connection with certain retirement and
employee benefit plans for the Fund. For the six months ended April 30, 1996,
the amount charged to the Fund by STC aggregated $19,273, of which $3,254 is
unpaid at April 30, 1996.
Scudder Fund Accounting Corporation ("SFAC"), a subsidiary of the Adviser, is
responsible 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 April 30, 1996, the amount charged to the Fund by SFAC aggregated
$116,511, of which $19,099 is unpaid at April 30, 1996.
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 April 30, 1996, Directors' fees and expenses aggregated $31,017.
D. INVESTING IN EMERGING MARKETS
- --------------------------------------------------------------------------------
Investing in emerging markets may involve special risks and considerations not
typically associated with investing in the United States. These risks include
revaluation of currencies and future adverse political and economic
developments. Moreover, securities issued in these markets may be less liquid
and their prices more volatile than those of securities of comparable U.S.
companies.
E. LINES OF CREDIT
- --------------------------------------------------------------------------------
The Fund and several affiliated Funds (the "Participants") share in a $500
million revolving credit facility for temporary or emergency purposes, including
the meeting of redemption requests that otherwise might require the untimely
disposition of securities. The Participants are charged an annual commitment fee
which is allocated among each of the Participants. Interest is calculated based
on the market rates at the time of the borrowing. The Fund may borrow up to a
maximum of 25 percent of its net assets under the agreement. In addition, the
Fund also maintains an uncommitted line of credit.
22
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of Scudder International Fund, Inc. and to the
Shareholders of Scudder Pacific Opportunities Fund:
We have audited the accompanying statement of assets and liabilities of Scudder
Pacific Opportunities Fund including the investment portfolio, as of April 30,
1996, and the related statement of operations for the six months then ended, the
statements of changes in net assets for the six months then ended and for the
year ended October 31, 1995, and the financial highlights for the six months
ended April 30, 1996, for each of the two years in the period ended October 31,
1995, and for the period December 8, 1992 (commencement of operations) to
October 31, 1993. 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 April
30, 1996 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 Pacific Opportunities Fund as of April 30, 1996, the results of its
operations for the six months then ended, the changes in net assets for the six
months then ended and for the year ended October 31, 1995, and the financial
highlights for the six months ended April 30, 1996, for each of the two years in
the period ended October 31, 1995, and for the period December 8, 1992
(commencement of operations) to October 31, 1993 in conformity with generally
accepted accounting principles.
Boston, Massachusetts COOPERS & LYBRAND L.L.P.
June 10, 1996
23
<PAGE>
(This page intentionally left blank.)
24
<PAGE>
OFFICERS AND DIRECTORS
Edmond D. Villani*
Chairman of the Board and Director
Nicholas Bratt*
President and Director
Paul Bancroft III
Director; Venture Capitalist and Consultant
Thomas J. Devine
Director; Consultant
Keith R. Fox
Director; President, Exeter Capital Management Corporation
William H. Gleysteen, Jr.
Director; President, The Japan Society, Inc.
William H. Luers
Director; President, The Metropolitan Museum of Art
Dr. Wilson Nolen
Director; Consultant
Juris Padegs*
Director, Vice President and Assistant Secretary
Daniel Pierce*
Director
Dr. Gordon Shillinglaw
Director; Professor Emeritus of Accounting,
Columbia University Graduate School of Business
Robert G. Stone, Jr.
Honorary 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
Elizabeth J. Allan*
Vice President
Carol L. Franklin*
Vice President
Edmund B. Games, Jr.*
Vice President
Jerard K. Hartman*
Vice President
William E. Holzer*
Vice President
Thomas W. Joseph*
Vice President
David S. Lee*
Vice President and Assistant Treasurer
Thomas F. McDonough*
Vice President and Secretary
Pamela A. McGrath*
Vice President and Treasurer
Edward J. O'Connell*
Vice President and Assistant Treasurer
Kathryn L. Quirk*
Vice President and Assistant Secretary
Richard W. Desmond*
Assistant Secretary
Coleen Downs Dinneen*
Assistant Secretary
*Scudder, Stevens & Clark, Inc.
25
<PAGE>
INVESTMENT PRODUCTS AND SERVICES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
The Scudder Family of Funds
-----------------------------------------------------------------------------------------------------------------
<C> <C>
Money Market Income
Scudder Cash Investment Trust Scudder Emerging Markets Income Fund
Scudder U.S. Treasury Money Fund Scudder Global Bond Fund
Tax Free Money Market+ Scudder GNMA Fund
Scudder Tax Free Money Fund Scudder Income Fund
Scudder California Tax Free Money Fund* Scudder International Bond Fund
Scudder New York Tax Free Money Fund* Scudder Short Term Bond 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 Emerging Markets Growth Fund
Scudder Massachusetts Limited Term Tax Free Fund* Scudder Global Fund
Scudder Massachusetts Tax Free Fund* Scudder Global Discovery Fund
Scudder Medium Term Tax Free Fund Scudder Gold Fund
Scudder New York Tax Free Fund* Scudder Greater Europe Growth Fund
Scudder Ohio Tax Free Fund* Scudder International Fund
Scudder Pennsylvania Tax Free Fund* Scudder Latin America Fund
Growth and Income Scudder Pacific Opportunities Fund
Scudder Balanced Fund Scudder Quality Growth Fund
Scudder Growth and Income Fund Scudder Small Company Value 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.
-----------------------------------------------------------------------------------------------------------------
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.
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
HOW TO CONTACT SCUDDER
Account Service and Information
- --------------------------------------------------------------------------------------------------------------
<S> <C>
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 For information on Scudder
Treasurers Trust,(TM) an institutional Institutional Funds,* funds
cash management service for designed to meet the broad
corporations, non-profit investment management and
organizations and trusts that uses service needs of banks and
certain portfolios of Scudder Fund, other institutions, call
Inc.* ($100,000 minimum), call 1-800-854-8525.
1-800-541-7703.
- --------------------------------------------------------------------------------------------------------------
</TABLE>
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.
27
<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 38 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.
