SCUDDER INTERNATIONAL FUND INC, 497, 1996-05-17

SCUDDER INTERNATIONAL FUND INC
497, 1996-05-17

Previous: SCHEIB EARL INC, SC 13D/A, 1996-05-17

Next: SEALED AIR CORP, S-8, 1996-05-17

Scudder Emerging Markets Growth Fund
- -------------------------------------
May 8, 1996

Scudder Global Fund
- -------------------------------------
November 1, 1995

Scudder Global Discovery Fund
- -------------------------------------
March 1, 1996
As Revised March 6, 1996

Scudder Greater Europe Growth Fund
- -------------------------------------
March 1, 1996

Scudder International Fund
- -------------------------------------
August 1, 1995

Scudder Latin America Fund
- -------------------------------------
March 1, 1996

Scudder Pacific Opportunities Fund
- -------------------------------------
March 1, 1996

Seven pure no-load(TM) (no sales charges) mutual funds offering a broad range of
worldwide equity opportunities in developed, newly industrialized and developing
countries.

This combined prospectus sets forth concisely the information a prospective
investor should know before investing in the following open-end funds: Scudder
Global Fund and Scudder Global Discovery Fund, each a series of Scudder Global
Fund, Inc.; Scudder Emerging Markets Growth Fund, Scudder Greater Europe Growth
Fund, Scudder International Fund, Scudder Latin America Fund and Scudder Pacific
Opportunities Fund, each a series of Scudder International Fund, Inc.Please
retain it for future reference.

If you require more detailed information, Statements of Additional Information
dated May 8, 1996 for Scudder Emerging Markets Growth Fund; March 1, 1996 for
Scudder Global Discovery Fund, Scudder Greater Europe Growth Fund, Scudder Latin
America Fund and Scudder Pacific Opportunities Fund; November 1, 1995 for
Scudder Global Fund; and August 1, 1995 for Scudder International Fund, as
amended from time to time, may be obtained without charge by writing Scudder
Investor Services, Inc., Two International Place, Boston, MA 02110-4103 or
calling 1-800-225-2470. The Statements, which are incorporated by reference into
this prospectus, have been filed with the Securities and Exchange Commission.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

<PAGE>

Expense information

Scudder Emerging Markets Growth Fund

How to compare a Scudder pure no-load(TM) fund

This information is designed to help you understand the various costs and
expenses of investing in Scudder Emerging Markets Growth Fund (the "Fund"). By
reviewing this table and those in other mutual funds' prospectuses, you can
compare the Fund's fees and expenses with those of other funds. With Scudder's
pure no-load(TM) funds, you pay no commissions to purchase or redeem shares, or
to exchange from one fund to another. As a result, all of your investment goes
to work for you.

1) Shareholder transaction expenses: Expenses charged directly to your
individual account in the Fund for various transactions.

Sales commissions to purchase shares (sales load) NONE
Commissions to reinvest dividends NONE
Deferred sales charge NONE
Redemption fees payable to the Fund 2.00%*
Exchange fees payable to the Fund 2.00%*

2) Annual Fund operating expenses: Estimated expenses paid by the Fund before
it distributes its net investment income, expressed as a percentage of the
Fund's average daily net assets for the fiscal year.

Investment management fee (after waiver) 0%**
12b-1 fees NONE
Other expenses (after waiver) 2.00%**
------
Total Fund operating expenses (after waiver) 2.00%**
======

Example

Based on the estimated level of total Fund operating expenses listed above, the
total expenses relating to a $1,000 investment, assuming a 5% annual return and
redemption at the end of each period, are listed below. Investors do not pay
these expenses directly; they are paid by the Fund before it distributes its net
investment income to shareholders.

1 Year 3 Years
------ -------
$20 $63

See "Fund organization--Investment adviser" for further information about the
investment management fee. This example assumes reinvestment of all dividends
and distributions and that the percentage amounts listed under "Annual Fund
operating expenses" remain the same each year. This example should not be
considered a representation of past or future expenses or return. Actual Fund
expenses and return vary from year to year and may be higher or lower than those
shown.

* There may be a 2% fee retained by the Fund which is imposed only on
redemptions or exchanges of shares held less than one year. You may redeem
by writing or calling the Fund. If you wish to receive your redemption
proceeds via wire, there is a $5 wire service fee. For additional
information, please refer to "Transaction information--Exchanging and
redeeming shares."

** Until June 30, 1997, the Adviser and certain of its subsidiaries have
agreed to waive all or portions of their fees payable by the Fund to the
extent necessary so that the total annualized expenses of the Fund do not
exceed 2.00% of average daily net assets. If the Adviser and its
subsidiaries had not agreed to waive all or portions of their fees, it is
estimated that annualized Fund expenses would be: investment management fee
1.25%, other expenses 2.92% and total operating expenses 4.17% for the
initial fiscal period. To the extent that expenses fall below the current
expense limitation, the Adviser and its subsidiaries reserve the right to
recoup, during the fiscal year incurred, amounts waived during the period,
but only to the extent that the Fund's expenses do not exceed 2.00%.

2
<PAGE>

Expense information

Scudder Global Fund

How to compare a Scudder pure no-load(TM) fund

This information is designed to help you understand the various costs and
expenses of investing in Scudder Global Fund. By reviewing this table and those
in other mutual funds' prospectuses, you can compare the Fund's fees and
expenses with those of other funds. With Scudder's pure no-load(TM) funds, you
pay no commissions to purchase or redeem shares, or to exchange from one fund to
another. As a result, all of your investment goes to work for you.

1) Shareholder transaction expenses: Expenses charged directly to your
individual account in the Fund for various transactions.

Sales commissions to purchase shares (sales load) NONE
Commissions to reinvest dividends NONE
Redemption fees NONE*
Fees to exchange shares NONE

2) Annual Fund operating expenses: Expenses paid by the Fund before it
distributes its net investment income, expressed as a percentage of the
Fund's average daily net assets for the fiscal year ended June 30, 1995.

Investment management fee 0.97%
12b-1 fees NONE
Other expenses 0.41%
-----
Total Fund operating expenses 1.38%
=====

Example

Based on the level of total Fund operating expenses listed above, the total
expenses relating to a $1,000 investment, assuming a 5% annual return and
redemption at the end of each period, are listed below. Investors do not pay
these expenses directly; they are paid by the Fund before it distributes its net
investment income to shareholders. (As noted above, the Fund has no redemption
fees of any kind.)

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$14 $44 $76 $166

* You may redeem by writing or calling the Fund. If you wish to receive your
redemption proceeds via wire, there is a $5 wire service fee. For
additional information, please refer to "Transaction information--Redeeming
shares."

3
<PAGE>

Expense information

Scudder Global Discovery Fund

How to compare a Scudder pure no-load(TM) fund

This information is designed to help you understand the various costs and
expenses of investing in Scudder Global Discovery Fund. By reviewing this table
and those in other mutual funds' prospectuses, you can compare the Fund's fees
and expenses with those of other funds. With Scudder's pure no-load(TM) funds,
you pay no commissions to purchase or redeem shares, or to exchange from one
fund to another. As a result, all of your investment goes to work for you.

1) Shareholder transaction expenses: Expenses charged directly to your
individual account in the Fund for various transactions.

Sales commissions to purchase shares (sales load) NONE
Commissions to reinvest dividends NONE
Redemption fees NONE*
Fees to exchange shares NONE

Investment management fee 1.10%
12b-1 fees NONE
Other expenses 0.59%
-----
Total Fund operating expenses 1.69%
=====

Example

Based on the level of total Fund operating expenses listed above, the total
expenses relating to a $1,000 investment, assuming a 5% annual return and
redemption at the end of each period, are listed below. Investors do not pay
these expenses directly; they are paid by the Fund before it distributes its
net investment income to shareholders. (As noted above, the Fund has no
redemption fees of any kind.)

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$17 $53 $92 $200

4
<PAGE>

Expense information

Scudder Greater Europe Growth Fund

How to compare a Scudder pure no-load(TM) fund

This information is designed to help you understand the various costs and
expenses of investing in Scudder Greater Europe Growth Fund. By reviewing this
table and those in other mutual funds' prospectuses, you can compare the Fund's
fees and expenses with those of other funds. With Scudder's pure no-load(TM)
funds, you pay no commissions to purchase or redeem shares, or to exchange from
one fund to another. As a result, all of your investment goes to work for you.

1) Shareholder transaction expenses: Expenses charged directly to your
individual account in the Fund for various transactions.

Sales commissions to purchase shares (sales load) NONE
Commissions to reinvest dividends NONE
Redemption fees NONE*
Fees to exchange shares NONE

Investment management fee (after waiver) 0.00%**
12b-1 fees NONE
Other expenses 1.50%**
-------
Total Fund operating expenses 1.50%**
=======

Example

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$15 $47 $82 $179

** Until February 28, 1997, the Adviser has agreed to waive a portion of its
fee to the extent necessary so that the total annualized expenses of the
Fund do not exceed 1.50% of average daily net assets. If the Adviser had
not agreed to waive its fee, Fund expenses would have been: investment
management fee 1.00%, other expenses 1.74% and total operating expenses
2.74% for the fiscal year ended October 31, 1995. To the extent that
expenses fall below 1.50% during the fiscal year, the Adviser reserves the
right to recoup, during the fiscal year incurred, amounts waived during the
period, but only to the extent that the Fund's expenses do not exceed
1.50%.

5
<PAGE>

Expense information

Scudder International Fund

How to compare a Scudder pure no-load(TM) fund

This information is designed to help you understand the various costs and
expenses of investing in Scudder International Fund. By reviewing this table and
those in other mutual funds' prospectuses, you can compare the Fund's fees and
expenses with those of other funds. With Scudder's pure no-load(TM) funds, you
pay no commissions to purchase or redeem shares, or to exchange from one fund to
another. As a result, all of your investment goes to work for you.

1) Shareholder transaction expenses: Expenses charged directly to your
individual account in the Fund for various transactions.

Sales commissions to purchase shares (sales load) NONE
Commissions to reinvest dividends NONE
Redemption fees NONE*
Fees to exchange shares NONE

Investment management fee 0.83%
12b-1 fees NONE
Other expenses 0.36%
-----
Total Fund operating expenses 1.19%
=====

Example

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$12 $38 $65 $144

6
<PAGE>

Expense information

Scudder Latin America Fund

How to compare a Scudder pure no-load(TM) fund

This information is designed to help you understand the various costs and
expenses of investing in Scudder Latin America Fund. By reviewing this table and
those in other mutual funds' prospectuses, you can compare the Fund's fees and
expenses with those of other funds. With Scudder's pure no-load(TM) funds, you
pay no commissions to purchase or redeem shares, or to exchange from one fund to
another. As a result, all of your investment goes to work for you.

1) Shareholder transaction expenses: Expenses charged directly to your
individual account in the Fund for various transactions.

2) Annual Fund operating expenses: Expenses paid by the Fund before it
distributed its net investment income, expressed as a percentage of the
Fund's average daily net assets for the fiscal year ended October 31, 1995.

Investment management fee (after state imposed
expense limitation) 1.22%**
12b-1 fees NONE
Other expenses 0.86%
-------
Total Fund operating expenses 2.08%**
=======

Example

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$21 $65 $112 $241

* There is a 2% fee retained by the Fund which is imposed only on redemptions
or exchanges of shares held less than one year, this fee is waived for all
shares purchased through certain retirement plans. If you wish to receive
your redemption proceeds via wire, there is a $5 wire service fee. For
additional information, please refer to "Transaction
information--Exchanging and redeeming shares."

** For the fiscal year ended October 31, 1995, the Adviser did not impose a
portion of its management fee. Without the state imposed expense
limitation, the total annualized expenses of the Fund would have been 2.11%
(of which 1.25% would have consisted of investment management fees) for the
fiscal year.

7
<PAGE>

Expense information

Scudder Pacific Opportunities Fund

How to compare a Scudder pure no-load(TM) fund

This information is designed to help you understand the various costs and
expenses of investing in Scudder Pacific Opportunities Fund. By reviewing this
table and those in other mutual funds' prospectuses, you can compare the Fund's
fees and expenses with those of other funds. With Scudder's pure no-load(TM)
funds, you pay no commissions to purchase or redeem shares, or to exchange from
one fund to another. As a result, all of your investment goes to work for you.

1) Shareholder transaction expenses: Expenses charged directly to your
individual account in the Fund for various transactions.

Sales commissions to purchase shares (sales load) NONE
Commissions to reinvest dividends NONE
Redemption fees NONE*
Fees to exchange shares NONE

Investment management fee 1.10%
12b-1 fees NONE
Other expenses 0.64%
-----
Total Fund operating expenses 1.74%
=====

Example

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$18 $55 $94 $205

See "Fund organization--Investment adviser" for further information about the
investment management fee. This example assumes reinvestment of all dividends
and distributions and that the percentage amounts listed under "Annual Fund
operating expenses" remain the same each year. This example should not be
consideredh 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.

8
<PAGE>

Financial highlights

Scudder Global Fund

The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the audited financial
statements.

If you would like more detailed information concerning the Fund's performance, a
complete portfolio listing and audited financial statements are available in the
Fund's Annual Report dated June 30, 1995 and may be obtained without charge by
writing or calling Scudder Investor Services, Inc.

<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 23, 1986
(COMMENCEMENT
YEARS ENDED JUNE 30, OF OPERATIONS)
------------------------------------------------------------------------- TO JUNE 30,
1995 1994(d) 1993 1992 1991 1990 1989 1988 1987
------------------------------------------------------------------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period............. $23.93 $21.63 $19.56 $18.06 $20.36 $17.64 $14.47 $15.42 $12.00
------ ------ ------ ------ ------ ------ ------ ------ ------
Income from investment
operations:
Net investment income........... .25 .23 .15 .19 .40 .19 .19 .18 .05
Net realized and unrealized
gain (loss) on investment
transactions.................. 1.91 2.57 2.42 2.28 (1.50) 3.28 3.20 (.82) 3.37
------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations 2.16 2.80 2.57 2.47 (1.10) 3.47 3.39 (.64) 3.42
------ ------ ------ ------ ------ ------ ------ ------ ------
Less distributions from:
Net investment income........... (.11) (.24) (.16) (.31) (.37) (.20) (.14) (.06) -
Net realized gains on
investment transactions....... (.34) (.26) (.34) (.66) (.83) (.55) (.08) (.25) -
------ ------ ------ ------ ------ ------ ------ ------ ------
Total distributions.............. (.45) (.50) (.50) (.97) (1.20) (.75) (.22) (.31) -
------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period... $25.64 $23.93 $21.63 $19.56 $18.06 $20.36 $17.64 $14.47 $15.42
====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (%)................. 9.11 12.99 13.45 14.09 (5.20) 20.00 23.90 (4.45) 28.50**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
($ millions)................... 1,168 1,096 577 371 268 257 91 81 102
Ratio of operating expenses,
to average daily net
assets (%)..................... 1.38 1.45 1.48 1.59 1.70 1.81 1.98 1.71(b) 1.84*(a)
Ratio of net investment income to
average daily net assets (%)... 1.03 .97 .90 1.09 2.21 1.77 1.22 1.23 .63*
Portfolio turnover rate (%)...... 44.4 59.7 64.9 44.6 85.0(c) 38.3 30.7 53.8 32.2*
<FN>
(a) The Adviser did not impose all of its management fee during the period July 23, 1986 (commencement of operations) to
December 31, 1986, amounting to $.01 per share.

(b) The Adviser absorbed a portion of the Fund's expenses exclusive of management fees, amounting to $.03 per share.

(c) The portfolio turnover rate on equity securities and debt securities was 62.7% and 174.4%, respectively, based on average
monthly equity holdings and average monthly debt holdings.

(d) Per share amounts have been calculated using weighted average shares outstanding.

* Annualized

** Not annualized

</FN>
</TABLE>

9
<PAGE>

Financial highlights

Scudder Global Discovery Fund

The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the audited financial
statements.

The Fund changed its name from Scudder Global Small Company Fund on March 6,
1996. If you would like more detailed information concerning the Fund's
performance, a complete portfolio listing and audited financial statements are
available in the Fund's Annual Report dated October 31, 1995 and may be obtained
without charge by writing or calling Scudder Investor Services, Inc.

<TABLE>
<CAPTION>
For the Period
September 10, 1991
(commencement
Years Ended October 31, of operations)
-------------------------------------------------- to October 31
1995 1994 1993 1992 1991
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . $16.27 $16.14 $12.05 $11.92 $12.00
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (a) . . . . . . . . . . (.03) (.02) .04 .07 .01
Net realized and unrealized gain (loss) on investment
transactions . . . . . . . . . . . . . . . . . . . 1.38 .48 4.24 .08 (.09)
------ ------ ------ ------ ------
Total from investment operations . . . . . . . . . . . 1.35 .46 4.28 .15 (.08)
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
From net investment income . . . . . . . . . . . . . - - (.07) (.02) -
In excess of net investment income . . . . . . . . . - (.18) - - -
From net realized gains on investment transactions . (.08) (.15) (.12) - -
------ ------ ------ ------ ------
Total distributions. . . . . . . . . . . . . . . . . . (.08) (.33) (.19) (.02) -
------ ------ ------ ------ ------
Net asset value, end of period . . . . . . . . . . . . $17.54 $16.27 $16.14 $12.05 $11.92
------ ------ ------ ------ ------
------ ------ ------ ------ ------
Total Return (%) . . . . . . . . . . . . . . . . . . . 8.32 2.80 36.04 1.26 (.67)*
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period ($ millions) . . . . . . . . 255 256 198 55 9
Ratio of operating expenses net, to average daily
net assets (%) (a) . . . . . . . . . . . . . . . . . 1.69 1.70 1.50 1.50 1.50**
Ratio of net investment income (loss) to average daily
net assets (%) . . . . . . . . . . . . . . . . . . . (.12) (.28) .53 .78 2.47**
Portfolio turnover rate (%). . . . . . . . . . . . . . 43.7 45.8 54.6 23.4 -
(a) Reflects a per share amount of expenses, exclusive of
management fees, reimbursed by the Adviser of . . $ - $ - $ - $ - $ .06
Reflects a per share amount of management fee not
imposed by the Adviser of . . . . . . . . . . . . $ - $ .01 $ .04 $ .09 $ .01
Operating expense ratio including expenses
reimbursed, management fee and other expenses
not imposed (%) . . . . . . . . . . . . . . . . . - 1.76 2.01 2.53 15.34**
* Not annualized
** Annualized
</TABLE>

10
<PAGE>

Financial highlights

Scudder Greater Europe Growth Fund

The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the audited financial
statements.

If you would like more detailed information concerning the Fund's performance, a
complete portfolio listing and audited financial statements are available in the
Fund's Annual Report dated October 31, 1995 and may be obtained without charge
by writing or calling Scudder Investor Services, Inc.

<TABLE>
<CAPTION>
For the Period
Year October 10, 1994
Ended (commencement
October 31, of operations) to
1995 October 31, 1994
----------- -----------------
<S> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . $12.18 $12.00
------ ------
Income from investment operations:
Net investment income (a) . . . . . . . . . . . . . . . . . . . . . . .13 .01
Net realized and unrealized gain on investment transactions . . . . . 1.70 .17
------ ------
Total from investment operations . . . . . . . . . . . . . . . . . . . 1.83 .18
------ ------
Less distributions from net investment income. . . . . . . . . . . . . (.02) -
------ ------
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $13.99 $12.18
====== ======
Total Return (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.06 1.50**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period ($ millions) . . . . . . . . . . . . . . . . 41 8
Ratio of operating expenses, net to average daily net assets (%) (a) 1.50 1.50*
Ratio of net investment income to average daily net assets (%) . . . . 1.25 2.40*
Portfolio turnover rate (%). . . . . . . . . . . . . . . . . . . . . . 27.9 -
(a) Reflects a per share amount of expenses, exclusive of
management fees, reimbursed by the Adviser of . . . . . . . . . $ - $ .01
Reflects a per share amount of management fee and other
fees not imposed. . . . . . . . . . . . . . . . . . . . . . . . $ .13 $ .02
Operating expense ratio including expenses reimbursed,
management fee and other expenses not imposed (%) . . . . . . . 2.74 11.46*

* Annualized
** Not annualized
</TABLE>

11
<PAGE>

Financial highlights

Scudder International Fund

The following table includes selected data for a share outstanding throughout
each period (a) and other performance information derived from the audited
financial statements.

If you would like more detailed information concerning the Fund's performance, a
complete portfolio listing and audited financial statements are available in the
Fund's Annual Report dated March 31, 1995 and may be obtained without charge by
writing or calling Scudder Investor Services, Inc.

<TABLE>
<CAPTION>
YEARS ENDED MARCH 31,
--------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period........ $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................... .21 .31 .38 .44 .80 .49 .40 .45 .47 .74
Net realized and
unrealized gain (loss)
on investment
transactions............. (1.03) 7.74 2.64 (.37) (.39) 5.30 4.15 (.86) 13.07 13.70
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment
operations................. (.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.............. $39.72 $42.96 $35.69 $34.36 $34.69 $37.00 $34.79 $33.43 $44.05 $36.93
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (%)............. (2.02) 22.69 9.12 .18 1.46 17.08 14.34 (.47) 40.18 64.17
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end of period
($ millions)............... 2,192 2,198 1,180 933 929 783 550 559 791 597
Ratio of operating
expenses to average
net assets (%)............. 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 (%)............. .48 .75 1.13 1.25 2.22 1.33 1.20 1.16 1.19 2.60
Portfolio turnover rate (%).. 46.3 39.9 29.2 50.4 70.1 49.4 48.3 54.8 66.5 36.0
<FN>
(a) Based on monthly average shares outstanding during the period.
</FN>
</TABLE>

12
<PAGE>

Financial highlights

Scudder Latin America Fund

The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the audited financial
statements.

If you would like more detailed information concerning the Fund's performance, a
complete portfolio listing and audited financial statements are available in the
Fund's Annual Report dated October 31, 1995 and may be obtained without charge
by writing or calling Scudder Investor Services, Inc.

<TABLE>
<CAPTION>
FOR THE PERIOD
DECEMBER 8, 1992
(COMMENCEMENT
YEARS ENDED OCTOBER 31, OF OPERATIONS)
------------------------- TO OCTOBER 31,
1995 1994 1993
------------------------- ---------------
<S> <C> <C> <C>
Net asset value, beginning of period ......................................... $24.44 $18.41 $12.00
------ ------ ------
Income from investment operations:
Net investment income (loss) (a) ..................................... .09 (.03) .03
Net realized and unrealized gain (loss) on investment transactions .. (7.58) 6.18 6.38
------ ------ ------
Total from investment operations ............................................. (7.49) 6.15 6.41
------ ------ ------
Less distributions:
In excess of net investment income ................................... -- (.06) --
From net realized gains on investment transactions ................... (.73) (.06) --
------ ------ ------
Total distributions .......................................................... (.73) (.12) --
------ ------ ------
Net asset value, end of period ............................................... $16.22 $24.44 $18.41
====== ====== ======
TOTAL RETURN (%) ............................................................. (30.96) 33.43 53.42(b)**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period ($ millions) ....................................... 519 809 261
Ratio of operating expenses, net to average daily net assets (%) (a) ......... 2.08 2.01 2.00*
Ratio of net investment income (loss) to average daily net assets (%) ........ .52 (.20) .44*
Portfolio turnover rate (%) .................................................. 39.5 22.4 4.6*
<FN>
(a) Reflects a per share amount of management fee not imposed
by the Adviser of ...................................................... $ .01 $ .01 $ .04
Operating expense ratio including management fee not imposed (%) ....... 2.11 2.05 2.69*
(b) Total return does not reflect the effect of the applicable redemption fees.
* Annualized
** Not annualized

</FN>
</TABLE>

13
<PAGE>

Financial highlights

Scudder Pacific Opportunities Fund

The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the audited financial
statements.

If you would like more detailed information concerning the Fund's performance, a
complete portfolio listing and audited financial statements are available in the
Fund's Annual Report dated October 31, 1995 and may be obtained without charge
by writing or calling Scudder Investor Services, Inc.

<TABLE>
<CAPTION>
FOR THE PERIOD
DECEMBER 8, 1992
YEARS ENDED OCTOBER 31, (COMMENCEMENT
--------------------- OF OPERATIONS) TO
1995 1994 OCTOBER 31, 1993
------- ------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period ................................... $ 17.57 $ 16.21 $ 12.00
------- ------- -------
Income from investment operations:
Net investment income (a) ........................................ .10 .04 .04
Net realized and unrealized gain (loss) on investment
transactions...................................................... (1.98) 1.41 4.17
------- ------- -------
Total from investment operations ....................................... (1.88) 1.45 4.21
------- ------- -------
Less distributions from:
Net investment income ............................................ (.10) (.08) --
Net realized gains on investment transactions .................... -- (.01) --
------- ------- -------
Total distributions .................................................... (.10) (.09) --
------- ------- -------
Net asset value, end of period ......................................... $ 15.59 $ 17.57 $ 16.21
======= ======= =======
TOTAL RETURN (%) ....................................................... (10.73) 8.97 35.08**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period ($ millions) ................................. 384 499 270
Ratio of operating expenses, net to average daily net assets (%) (a) ... 1.74 1.81 1.75*
Ratio of net investment income to average daily net assets (%) ......... .65 .28 1.41*
Portfolio turnover rate (%) ............................................ 64.0 38.5 9.9*
(a) Reflects a per share amount of management fee and other fees
not imposed by the Adviser of .................................. -- -- .03
Operating expense ratio including expenses reimbursed,
management fee and other expenses not imposed (%) .............. -- -- 2.90*
</TABLE>

* Annualized

** Not annualized

14
<PAGE>

A message from Scudder's chairman

Scudder, Stevens & Clark, Inc., investment adviser to the Scudder Family of
Funds, was founded in 1919. We offered America's first no-load mutual fund in
1928. Today, we manage in excess of $100 billion for many private accounts and
over 50 mutual fund portfolios. We manage the mutual funds in a special program
for the American Association of Retired Persons, as well as the fund options
available through Scudder Horizon Plan, a tax-advantaged variable annuity. We
also advise The Japan Fund and nine closed-end funds that invest in countries
around the world.

The Scudder Family of Funds is designed to make investing easy and less costly.
It includes money market, tax free, income and growth funds as well as IRAs,
401(k)s, Keoghs and other retirement plans.

Services available to all shareholders include toll-free access to the
professional service representatives of Scudder Investor Relations, easy
exchange among funds, shareholder reports, informative newsletters and the
walk-in convenience of Scudder Funds Centers.

All Scudder mutual funds are pure no-load(TM). This means you pay no commissions
to purchase or redeem your shares or to exchange from one fund to another. There
are no "12b-1" fees either, which many other funds now charge to support their
marketing efforts. All of your investment goes to work for you. We look forward
to welcoming you as a shareholder.

/s/Daniel Pierce
The Funds

Seven pure no-load(TM) (no sales charges) mutual funds offering a broad range of
worldwide equity opportunities in developed, newly industrialized and developing
countries:

* Scudder Emerging Markets Growth Fund

* Scudder Global Fund

* Scudder Global Discovery Fund

* Scudder Greater Europe Growth Fund

* Scudder International Fund

* Scudder Latin America Fund

* Scudder Pacific Opportunities Fund

Contents

Introduction 16
Scudder Emerging Markets Growth Fund 16
Scudder Global Fund 18
Scudder Global Discovery Fund 20
Scudder Greater Europe Growth Fund 22
Scudder International Fund 24
Scudder Latin America Fund 25
Purchases 28
Exchanges and redemptions 29
Scudder Pacific Opportunities Fund 30
Special risk considerations 32
Additional information about policies
and investments 33
Distribution and performance
information 40
Fund organization 41
Transaction information 43
Shareholder benefits 48
Investment products and services 52
How to contact Scudder 53

15
<PAGE>

Introduction

Scudder Emerging Markets Growth Fund, Scudder Global Fund, Scudder Global
Discovery Fund, Scudder Greater Europe Growth Fund, Scudder International Fund,
Scudder Latin America Fund and Scudder Pacific Opportunities Fund (collectively,
the "Funds"), are mutual funds advised by Scudder, Stevens & Clark, Inc. (the
"Adviser"). The seven Funds' prospectuses are presented together so you can
understand their important differences and decide which Fund or combination of
Funds is most suitable for your investment needs.

Each Fund offers all the benefits of the Scudder Family of Funds. Scudder,
Stevens & Clark, Inc. manages a diverse family of pure no-load(TM) funds and
provides a wide range of services to help investors meet their investment needs.
Please refer to "Investment products and services" for additional information.

Except as otherwise indicated, each Fund's investment objective and policies are
not fundamental and may be changed without a vote of shareholders. Shareholders
will receive written notice of any changes in a Fund's objectives. If there is a
change in investment objectives, shareholders should consider whether the Fund
remains an appropriate investment in light of their current financial position
and needs. There can be no assurance that each Fund's objective will be met.

Scudder Emerging Markets Growth Fund

Investment objective and policies

Scudder Emerging Markets Growth Fund seeks long-term growth of capital primarily
through equity investment in emerging markets around the globe.

The Fund will invest in the Asia-Pacific region, Latin America, less developed
nations in Europe, the Middle East and Africa, focusing investments in countries
and regions where there appear to be the best value and appreciation potential,
subject to considerations of portfolio diversification and liquidity. In the
opinion of the Adviser, many emerging nations around the globe are likely to
continue to experience economic growth rates well in excess of those found in
the U.S., Japan and other developed markets. In the opinion of the Adviser, this
economic growth should translate into strong stock market performance over the
long term.

While the Fund offers the potential for substantial price appreciation over
time, it also involves above-average investment risk. The Fund is designed as a
long-term investment and not for short-term trading purposes. It should not be
considered a complete investment program. The Fund's net asset value (price) can
fluctuate significantly with changes in stock market levels, political
developments, movements in currencies, investment flows and other factors. To
encourage a long-term investment horizon, a 2% redemption and exchange fee,
described more fully below, is payable to the Fund for the benefit of remaining
shareholders on shares held less than one year.

Investments

At least 65% of the Fund's total assets will be invested in the equity
securities of emerging market issuers. The Fund considers "emerging markets" to
include any country that is defined as an emerging or developing economy by any
one of the International Bank for Reconstruction and Development (i.e., the
World Bank), the International Finance Corporation or the United Nations or its
authorities. The Fund intends to allocate its investments among at least three
countries at all times, and does not expect to concentrate in any particular
industry. There is no limitation, however, on the amount the Fund

16
<PAGE>

can invest in a specific country or region of the world.

The Fund deems an issuer to be located in an emerging market if:

* the issuer is organized under the laws of an emerging market country;

* the issuer's principal securities trading market is in an emerging market;
or

* at least 50% of the issuer's non-current assets, capitalization, gross
revenue or profit in any one of the two most recent fiscal years is derived
(directly or indirectly through subsidiaries) from assets or activities
located in emerging markets.

The Fund's equity investments are common stock, preferred stock (either
convertible or non-convertible), depository receipts and warrants. Equity
securities may also be purchased through rights. Securities may be listed on
securities exchanges, traded over-the-counter, or have no organized market. The
Fund may invest in illiquid securities.

The Fund may invest up to 35% of its total assets in emerging market and
domestic debt securities if the Adviser determines that the capital appreciation
of debt securities is likely to equal or exceed the capital appreciation of
equity securities. Debt instruments held by the Fund take the form of bonds,
notes, bills, debentures, convertible securities, warrants, bank obligations,
short-term paper, loan participations, loan assignments, and trust interests.

Under normal market conditions, the Fund may invest up to 35% of its assets in
equity securities of issuers in the U.S. and other developed markets. In
evaluating the appropriateness of such investments for the Fund, the Adviser
takes into account the issuer's involvement in the emerging markets and the
potential impact of that involvement on business results. The Fund may also
purchase securities on a when-issued or forward delivery basis, and may engage
in various strategic transactions, including derivatives. In addition, to
maintain liquidity, the Fund may borrow from banks in an amount not exceeding
the value of one-third of the Fund's total assets. The Fund does not expect to
borrow for investment purposes.

For temporary defensive purposes, the Fund may hold, without limit, debt
instruments as well as cash and cash equivalents, including foreign and domestic
money market instruments, short-term government and corporate obligations, and
repurchase agreements. It is impossible to predict for how long such alternative
strategies will be utilized. The Fund may also invest in closed-end investment
companies investing primarily in the emerging markets. To the extent the Fund
invests in such closed-end investment companies, shareholders will incur certain
duplicate fees and expenses. Such closed-end investment company investments will
generally only be made when market access or liquidity restricts direct
investment in the market.

More information about the investments and policies of the Fund is provided
under "Additional information about policies and investments."

Investment strategy

The Adviser takes a top-down approach to evaluating investments for the Fund,
using extensive fundamental and field research. The process begins with a study
of the economic fundamentals of each country and region as well as an
examination of regional themes such as growing trade, increases in direct
foreign investment and deregulation of capital markets. Understanding regional
themes allows the Adviser to identify the industries and companies most likely
to benefit from the political, social and economic changes taking place in a
given region of the world.

Within a market, the Adviser looks for individual companies with exceptional
business prospects, which may be due to market dominance, unique franchises,
high growth potential, or innovative services, products or technologies. The
Adviser seeks to identify companies with favorable potential for appreciation

17
<PAGE>

Scudder Emerging Markets Growth Fund (cont'd)

through growing earnings or greater market recognition over time.

While these companies may be among the largest in their local markets, they may
be small by the standards of U.S. stock market capitalization.

Why invest in the Fund?

This Fund is designed as a convenient, low cost way for investors to participate
in the growth opportunities afforded by a broad range of emerging markets.
Through one actively managed, pure no-load(TM) fund, investors can tap into
developing regions throughout the world, without the burden of deciding where
and when to invest on their own.

The Adviser believes the emerging markets will continue to experience some of
the fastest rates of economic growth over the next decade and continue to offer
attractive stock market potential. In the Pacific Rim and other parts of Asia,
economies are typically characterized by large, relatively low cost labor pools,
high savings rates and worldwide demand for their products. Many companies there
are experiencing rising productivity and profit growth due to increased focus on
higher value-added products and enhanced capital investment in technology. In
Latin America, the region has benefited from governmental efforts to reduce
inflation and budget deficits, invest in much needed infrastructure, deregulate
or privatize industry and liberalize their capital markets. Eastern European
countries are experiencing strong economic growth as capitalism takes hold. Many
African and Middle Eastern countries are also benefiting from the shift to
market based economies and from improved fiscal and monetary discipline. These
regions, as a whole, are attracting a growing pool of foreign investment and
benefiting from growing regional trade, which is helping fuel rapid economic
growth. Stock markets in many of these countries have outperformed our own and
those of the other more developed countries.

Investors should be aware that participation in the Fund involves special
considerations and risks not typically associated with a mutual fund investing
principally in the securities of U. S. issuers. However, movements in the Fund's
share price may have a low correlation with movements in the U.S. markets, so
adding shares of the Fund to an investor's portfolio may, over time, increase
the investor's overall diversification, and reduce overall risk.

Investing directly in emerging market securities is usually impractical for
individual investors. Investors frequently find it difficult to arrange
purchases and sales, obtain current market, industry or corporate information,
hold securities for safekeeping, and convert profits from foreign currencies to
U.S. dollars. The Fund offers professional management and administrative
convenience to shareholders wishing to invest in these more dynamic, emerging
markets of the world.

Scudder Global Fund

Investment objective and policies

Scudder Global Fund seeks long-term growth of capital through a diversified
portfolio of marketable securities, primarily equity securities, including
common stocks, preferred stocks and debt securities convertible into common
stocks. The Fund invests on a worldwide basis in equity securities of companies
which are incorporated in the U.S. or in foreign countries. It also may invest
in the debt securities of U.S. and foreign issuers. Income is an incidental
consideration.

Investments

The Fund invests in companies that the Adviser believes will benefit from global
economic trends, promising technologies or products and specific country
opportunities resulting from changing geopolitical, currency or economic
relationships. It is expected that investments will be spread broadly around the
world. The Fund will be invested usually in securities of issuers located in at
least three countries, one of which may be the U.S. The Fund may be invested
100% in non-U.S. issues, and for temporary defensive purposes may be invested
100% in U.S. issues, although under normal circumstances it is expected that
both foreign and U.S. investments will be represented in the Fund's portfolio.
It is expected that investments will include companies of varying size as

18
<PAGE>

measured by assets, sales or capitalization.

The Fund generally invests in equity securities of established companies listed
on U.S. or foreign securities exchanges but also may invest in securities traded
over-the-counter. It also may invest in debt securities convertible into common
stock, and convertible and nonconvertible preferred stock, and fixed-income
securities of governments, government agencies, supranational agencies and
companies when the Adviser believes the potential for appreciation will equal or
exceed that available from investments in equity securities. These debt and
fixed-income securities will be predominantly investment-grade securities, that
is, those rated Aaa, Aa, A or Baa by Moody's Investors Service, Inc. ("Moody's")
or AAA, AA, A or BBB by Standard & Poor's ("S&P") or those of equivalent quality
as determined by the Adviser. The Fund may not invest more than 5% of its total
assets in debt securities rated Baa or below by Moody's, or BBB or below by S&P
or deemed by the Adviser to be of comparable quality (see "Additional
information about policies and investments--Risk factors").

The Fund may invest in zero coupon securities which pay no cash income and are
issued at substantial discounts from their value at maturity. When held to
maturity, their entire income, which consists of accretion of discount, comes
from the difference between the issue price and their value at maturity.
Fixed-income securities also may be held for temporary defensive purposes when
the Adviser believes market conditions so warrant and for temporary investment.
Similarly, the Fund may invest in cash equivalents (including foreign money
market instruments, such as bankers' acceptances, certificates of deposit,
commercial paper, short-term government and corporate obligations and repurchase
agreements) for temporary defensive purposes and for liquidity. The Fund may
invest in closed-end investment companies holding foreign securities. In
addition, the Fund may engage in strategic transactions.

Why invest in the Fund?

The management of the Fund believes that there is substantial opportunity for
long-term capital growth from a professionally managed portfolio of securities
selected from the U.S. and foreign equity markets. This global investment
framework seeks to take advantage of the investment opportunities created by the
global economy. The world has become highly integrated in economic, industrial
and financial terms. Companies increasingly operate globally as they purchase
raw materials, produce and sell their products and raise capital. As a result,
international trends such as movements in currency and trading relationships are
becoming more important to many industries than purely domestic influences. To
understand a company's business, it is frequently more important to understand
how it is linked to the world economy than whether or not it is, for example, a
U.S., French or Swiss company. Just as a company takes a global perspective in
deciding where to operate, so too may an investor benefit from looking globally
in deciding which industries are growing, which producers are efficient and
which companies' shares are undervalued. The Fund affords the investor access to
opportunities wherever they arise, without being constrained by the location of
a company's headquarters or the trading market for its shares.

The Fund is designed for investors seeking worldwide equity opportunities in
developed, newly industrialized and developing countries (some of these

19
<PAGE>

Scudder Global Fund (cont'd)

developing countries are located in Latin America and Africa). Like consumers
who seek to buy a good product wherever it is made, the Fund seeks to find
investment opportunities regardless of location. Because the Fund's portfolio
invests globally, it provides the potential to augment returns available from
the U.S. stock market. In addition, since U.S. and foreign markets do not always
move in step with each other, a global portfolio will be more diversified than
one invested solely in U.S. securities.

Investing directly in foreign securities is usually impractical for most
investors because it presents complications and extra costs. Investors often
find it difficult to arrange purchases and sales, to obtain current information,
to hold securities in safekeeping and to convert the value of their investments
from foreign currencies into dollars. The Fund manages these problems for the
investor. With a single investment, the investor has a diversified worldwide
investment portfolio which is managed actively by experienced professionals. The
Adviser has had many years of experience investing in foreign markets and
dealing with trading, custody and currency transactions around the world. The
Adviser has the benefit of information it receives from worldwide sources and
believes the Fund affords investors an efficient and cost-effective method of
investing worldwide.

Scudder Global Discovery Fund

Investment objective and policies

Scudder Global Discovery Fund seeks above-average capital appreciation over the
long term by investing primarily in the equity securities of small companies
located throughout the world. The Fund is designed for investors looking for
above-average appreciation potential (when compared with the overall domestic
stock market as reflected by Standard & Poor's 500 Composite Price Index) and
the benefits of investing globally, but who are willing to accept above-average
stock market risk, the impact of currency fluctuation and little or no current
income.

Investments in small companies

In pursuit of its objective, the Fund generally invests in small, rapidly
growing companies which offer the potential for above-average returns relative
to larger companies, yet are frequently overlooked and thus undervalued by the
market. The Fund has the flexibility to invest in any region of the world. It
can invest in companies based in emerging markets, typically in the Far East,
Latin America and lesser developed countries in Europe, as well as in firms
operating in developed economies, such as those of the United States, Japan and
Western Europe.

The Adviser invests the Fund's assets in companies it believes offer
above-average earnings, cash flow or asset growth potential. It also invests in
companies which may receive greater market recognition over time. The Adviser
believes that these factors offer significant opportunity for long-term capital
appreciation. The Adviser evaluates investments for the Fund from both a
macroeconomic and microeconomic perspective, using fundamental analysis,
including field research. The Adviser analyzes the growth potential and relative
value of possible investments. When evaluating an individual company, the
Adviser takes into consideration numerous factors, including the depth and
quality of management; a company's product line, business strategy and
competitive position; research and development efforts; financial strength,
including degree of leverage; cost structure; revenue and earnings growth
potential; price-earnings ratios and other stock valuation measures.
Secondarily, the Adviser weighs the attractiveness of the country and region in

20
<PAGE>

which a company is located.

Under normal circumstances the Fund invests at least 65% of its total assets in
the equity securities of small companies. While the Adviser believes that
smaller, lesser-known companies can offer greater growth potential than larger,
more established firms, the former also involve greater risk and price
volatility. To help reduce risk, the Fund expects, under normal market
conditions, to diversify its portfolio widely by company, industry and country.
The Fund intends to allocate investments among at least three countries at all
times, one of which may be the United States.

The Fund may invest up to 35% of its total assets in equity securities of larger
companies located throughout the world and in debt securities if the Adviser
determines that the capital appreciation of debt securities is likely to exceed
the capital appreciation of equity securities. The Fund may purchase
investment-grade bonds, those rated Aaa, Aa, A or Baa by Moody's or AAA, AA, A
or BBB by S&P or, if unrated, of equivalent quality as determined by the
Adviser. The Fund may also invest up to 5% of its net assets in debt securities
rated below investment-grade (see "Additional information about policies and
investments -- Risk factors").

The Fund invests primarily in companies whose individual equity market
capitalization would place them in the same size range as companies in
approximately the lowest 20% of world market capitalization as represented by
the Salomon Brothers Broad Market Index, an index comprised of equity securities
of more than 6,500 small-, medium- and large-sized companies based in 22 markets
around the globe. Based on this policy, the companies held by the Fund typically
will have individual equity market capitalizations of between approximately $50
million and $2 billion (although the Fund will be free to invest in smaller
capitalization issues that satisfy the Fund's size standard). Furthermore, the
median market capitalization of the Fund will not exceed $750 million.

The equity securities in which the Fund may invest consist of common stocks,
preferred stocks (either convertible or nonconvertible), rights and warrants.
These securities may be listed on the U.S. or foreign securities exchanges or
traded over-the-counter. For capital appreciation purposes, the Fund may
purchase notes, bonds, debentures, government securities and zero coupon bonds
(any of which may be convertible or nonconvertible). The Fund may invest in
foreign securities and American Depositary Receipts which may be sponsored or
unsponsored. The Fund may also invest in closed-end investment companies holding
foreign securities, enter into repurchase agreements and engage in strategic
transactions. For temporary defensive purposes, the Fund may, during periods in
which conditions in securities markets warrant, invest without limit in cash and
cash equivalents.

Why invest in the Fund?

Scudder Global Discovery Fund offers convenient, low-cost access to a
diversified, global portfolio of equity securities issued by smaller companies.
The Fund's experienced, professional management can help investors take
advantage of a rapidly changing world economy.

Unlike small company funds which limit themselves to U.S. investments, the Fund
seeks investment opportunities wherever they arise. The Fund enjoys the
flexibility to invest in all established markets, as well as in newly free or
newly industrialized economies around the world. Because the Fund operates
globally, it may, under certain market conditions, augment the returns available
from a comparable investment in the U.S. market alone.

The Fund focuses specifically on small companies believed to have favorable
long-term growth prospects. Small companies can be attractive because they are
frequently sources of new technologies and services, often compete

21
<PAGE>

Scudder Global Discovery Fund (cont'd)

with larger companies on the basis of lower labor costs and often grow faster
than larger firms. Their smaller size often allows them to respond rapidly to
changing business conditions. Also, small companies may not be closely followed
by securities analysts, so they may reward the investor with the patience and
knowledge to carefully seek them out and understand them. This can mean
significant long-term opportunity as these companies achieve greater recognition
over time.

While the Fund is broadly diversified, it is not a complete investment program.
However, adding shares of the Fund to a portfolio can increase diversification,
which should moderate overall portfolio risk.

The Fund is appropriate for investors who can accept the greater risks of
global, small company investing for the potentially greater rewards. Investing
directly in foreign securities is usually impractical for individual investors.
Investors frequently find it difficult to arrange purchases and sales, obtain
current information about companies abroad, hold securities in safekeeping, and
convert their profits from foreign currencies to U.S. dollars. The Fund makes it
easy for investors to take advantage of small company opportunities on a global
basis and benefit from the Adviser's experience managing international mutual
funds.

Scudder Greater Europe Growth Fund

Investment objective and policies

Scudder Greater Europe Growth Fund seeks long-term growth of capital through
investments primarily in the equity securities of European companies. Although
the focus is on long-term growth, the Fund may provide current income
principally through holdings in dividend-paying securities.

Greater Europe includes both the industrialized nations of Western Europe and
the less wealthy or developed countries in Southern and Eastern Europe. Within
this diverse area, the Fund seeks to benefit from accelerating economic growth
transformation and deregulation taking hold. These developments involve, among
other things, increased privatizations and corporate restructurings, the
reopening of equity markets and economies in Eastern Europe, further broadening
of the European Community, and the implementation of economic policies to
promote non-inflationary growth. The Fund invests in companies it believes are
well placed to benefit from these and other structural and cyclical changes now
underway in this region of the world.

Investments

The Fund will invest, under normal market conditions, at least 80% of its assets
in the equity securities of European companies. The Fund defines a European
company as follows:

* A company organized under the laws of a European country or for which the
principal securities trading market is in Europe; or

* A company, wherever organized, where at least 50% of the company's
non-current assets, capitalization, gross revenue or profit in its most
recent fiscal year represents (directly or indirectly through subsidiaries)
assets or activities located in Europe.

The Fund expects the majority of its equity assets to be in the more established
and liquid markets of Western and Southern Europe. These more established
Western and Southern European countries include: Austria, Belgium, Denmark,
Finland, France, Germany, Iceland, Ireland, Italy, Luxembourg, the Netherlands,
Norway, Spain, Sweden, Switzerland, and the United Kingdom. To enhance return
potential, however, the Fund may pursue investment opportunities in the less
wealthy nations of Southern Europe, currently Greece, Portugal and Turkey, and

22
<PAGE>

the former communist countries of Eastern Europe, including countries once part
of the Soviet Union. The Fund may invest in other countries of Europe when their
markets become sufficiently developed, in the opinion of the Fund's Adviser.

The Fund intends to allocate its investments among at least three countries at
all times and does not expect to concentrate investments in any particular
industry. The Fund's equity investments are common stock, preferred stock
(convertible or non-convertible), depositary receipts (sponsored or unsponsored)
and warrants. These may be restricted securities. Equity securities may also be
purchased through rights. Securities may be listed on securities exchanges,
traded over-the-counter or have no organized market. In addition, the Fund may
engage in strategic transactions.

The Fund may invest, under normal market conditions, up to 20% of its total
assets in European debt securities. Capital appreciation in debt securities may
arise from a favorable change in relative interest rate levels or in the
creditworthiness of issuers. Within this 20% limit, the Fund may hold debt
securities which are unrated, rated, or the equivalent of those rated below
investment-grade (commonly referred to as "junk bonds"); that is, rated below
Baa by Moody's or below BBB by S&P.

The Fund may invest in when-issued securities and convertible securities and may
enter into repurchase agreements. The Fund may also invest in closed-end
investment companies that invest primarily in Europe.

In addition, to provide for redemptions or distributions, the Fund may borrow
from banks and other entities in an amount not exceeding the value of one-third
of the Fund's total assets. The Fund does not expect to borrow for investment
purposes.

When, in the opinion of the Adviser, market conditions warrant, the Fund may
hold foreign or U.S. debt instruments as well as cash or cash equivalents,
including foreign and domestic money market instruments, short-term government
and corporate obligations, and repurchase agreements without limit for temporary
defensive purposes and up to 20% to maintain liquidity. See "Additional
information about policies and investments--Risk factors."

Investment strategy

The Adviser will conduct regional, country, industry and company analysis in
search of investments likely to benefit from economic, political, industrial and
other changes occurring across Europe. In investigating these four areas, the
Adviser relies heavily on fundamental analysis supplemented by field research.

Regional and country analysis involves evaluating such factors as projected
levels of economic growth, changes in interest rates and inflation, trade
patterns, fluctuations in currencies and political developments within and among
nations. Along with this macroeconomic analysis, the Adviser weighs the
prospects for individual industries and companies. The focus will be on looking
for companies with strong management teams, solid finances, leading products,
franchises or technologies, and market strategies well positioned to benefit
from growth and developments in the region.

Why invest in the Fund?

The goal of the Fund is to provide investors with long-term growth of capital by
participating in investments, primarily in the form of equity securities,
located throughout Greater Europe, which encompasses both the industrialized
nations of Western Europe and the less wealthy or developed markets in Southern
and Eastern Europe. Greater Europe is a region of more than 3.8 million square
miles, 800 million consumers, and has a total wealth unsurpassed by any other
continent. While this region is diverse in culture, politics and industrial
development, it is taking steps to promote greater economic integration and
cooperation.

23
<PAGE>

Scudder Greater Europe Growth Fund (cont'd)

In selecting investments for the Fund, the Adviser seeks out well-managed
companies, both large multinationals and smaller local firms, standing to
benefit from structural and cyclical changes now underway in Europe. Economic
growth transformation and renewal are taking place in different areas and
different ways including: a trend toward privatizations and corporate
restructurings; deregulation and modernization of securities markets; reduction
in trade barriers and currency restrictions; global expansion by major European
companies of both exports and production; steps toward the broadening of the
European Community; economic reform and modernization of the former communist
countries of Eastern Europe; expected further growth of an already large middle
class and a general increase in consumer confidence; and anticipated labor
market restructurings. The Adviser believes that active management, based on
disciplined fundamental research, will yield promising investment opportunities
for long-term capital appreciation.

The Fund seeks to provide appreciation over time with average international
equity fund risk. It is designed as a long-term investment and not for
short-term trading purposes, and should not be considered a complete investment
program. While the Fund entails stock market and other risks, movements in its
share price may have a low correlation with movements in the U.S. markets, so
adding shares of the Fund to an investor's portfolio may increase the investor's
portfolio diversification, and thus may moderate overall portfolio risk.

The Fund's investments are generally denominated in foreign currencies. The
strength or weakness of the U.S. dollar against these currencies is responsible
for part of the Fund's investment performance. If the dollar falls in value
relative to the German deutschemark, for example, the dollar value of a German
stock held in the portfolio will rise even though the price of the stock remains
unchanged. Conversely, if the dollar rises in value relative to the
deutschemark, the dollar value of the German stock will fall.

Investing directly in foreign securities is usually impractical for individual
investors. Investors frequently find it difficult and expensive to arrange
purchases and sales, obtain current market, industry or corporate information,
hold securities for safekeeping and convert profits from foreign currencies to
U.S. dollars. The Fund manages these tasks for the investor. The Adviser has had
long experience in dealing in foreign markets and believes the Fund affords a
convenient and cost-effective method of investing in the European markets.

Scudder International Fund

Investment objective and policies

Scudder International Fund seeks long-term growth of capital primarily through a
diversified portfolio of marketable foreign equity securities. These securities
are selected primarily to permit the Fund to participate in non-United States
companies and economies with prospects for growth. The Fund invests in
companies, wherever organized, which do business primarily outside the United
States. The Fund intends to diversify investments among several countries and to
have represented in the portfolio, in substantial proportions, business
activities in not less than three different countries. The Fund does not intend
to concentrate investments in any particular industry. In addition, the Fund may
engage in strategic transactions.

Investments

The Fund generally invests in equity securities of established companies, listed
on foreign exchanges, which the Fund's Adviser believes have favorable
characteristics.

24
<PAGE>

When the Adviser believes that it is appropriate to do so in order to achieve
the Fund's investment objective of long-term capital growth, the Fund may invest
up to 20% of its total assets in debt securities. Such debt securities include
debt securities of foreign governments, supranational organizations and private
issuers, including bonds denominated in the European Currency Unit (ECU).
Portfolio debt investments will be selected on the basis of, among other things,
yield, credit quality, and the fundamental outlooks for currency and interest
rate trends in different parts of the globe, taking into account the ability to
hedge a degree of currency or local bond price risk. The Fund may purchase
"investment-grade" bonds, which are those rated Aaa, Aa, A or Baa by Moody's or
AAA, AA, A or BBB by S&P or, if unrated, judged by the Adviser to be of
equivalent quality. The Fund may also invest up to 5% of its total assets in
debt securities which are rated below investment- grade (see "Additional
information about policies and investments--Risk factors").

When the Adviser determines that exceptional conditions exist abroad, the Fund
may, for temporary defensive purposes, invest all or a portion of its assets in
Canadian or U.S. Government obligations or currencies, or securities of
companies incorporated in and having their principal activities in Canada or the
U.S.

Why invest in the Fund?

The Fund is designed for investors seeking investment opportunity and
diversification through an actively managed portfolio of foreign securities.

One reason that some investors may wish to invest overseas is that certain
foreign economies may grow more rapidly than the U.S. economy and may offer
opportunities for achieving superior investment returns. Another reason is that
foreign stock and bond markets do not always move in step with each other or
with the U.S. markets. A portfolio invested in a number of markets worldwide
will be better diversified than one which is subject to the movements of a
single market.

Another benefit of the Fund is that it eliminates the complications and extra
costs associated with direct investment in individual foreign securities.
Individuals investing directly in foreign stocks may find it difficult to make
purchases and sales, to obtain current information, to hold securities in
safekeeping, and to convert the value of their investments from foreign
currencies into U.S. dollars. The Fund manages these tasks for the investor.
With a single investment, the investor has a diversified international
investment portfolio, which is actively managed by experienced professionals.
The Adviser has had long experience in dealing in foreign markets and with
brokers and custodian banks around the world. The Adviser also has the benefit
of an established information network and believes the Fund affords a convenient
and cost-effective method of investing internationally.

The Fund's investments are generally denominated in foreign currencies. The
strength or weakness of the U.S. dollar against these currencies is responsible
for part of the Fund's investment performance. If the dollar falls in value
relative to the Japanese yen, for example, the dollar value of a Japanese stock
held in the portfolio will rise even though the price of the stock remains
unchanged. Conversely, if the dollar rises in value relative to the yen, the
dollar value of the Japanese stock will fall.

Scudder Latin America Fund

Investment objective and policies

Scudder Latin America Fund seeks to provide long-term capital appreciation
through investment primarily in the securities of Latin American issuers.

The Fund seeks to benefit from economic and political trends emerging throughout
Latin America. These trends are supported by governmental initiatives designed
to promote freer trade and market-oriented economies. The Fund's Adviser

25
<PAGE>

Scudder Latin America Fund (cont'd)

believes that efforts by Latin American countries to, among other things, reduce
government spending and deficits, control inflation, lower trade barriers,
stabilize currency exchange rates, increase foreign and domestic investment and
privatize state-owned companies, will set the stage for attractive investment
returns over time.

The Fund involves above-average investment risk. It is designed as a long-term
investment and not for short-term trading purposes, and should not be considered
a complete investment program. A 2% redemption and exchange fee, described more
fully below, may be payable to the Fund for the benefit of remaining
shareholders on shares held less than one year.

Investments

At least 65% of the Fund's total assets will be invested in the securities of
Latin American issuers, and 50% of the Fund's total assets will be invested in
Latin American equity securities. To meet its objective to provide long-term
capital appreciation, the Fund normally invests at least 65% of its total assets
in equity securities. For purposes of this prospectus, Latin America is defined
as Mexico, Central America, South America and the Spanish-speaking islands of
the Caribbean. The Fund defines securities of Latin American issuers as follows:

* Securities of companies organized under the laws of a Latin American
country or for which the principal securities trading market is in Latin
America;

* Securities issued or guaranteed by the government of a country in Latin
America, its agencies or instrumentalities, political subdivisions or the
central bank of such country;

* Securities of companies, wherever organized, when at least 50% of an
issuer's non-current assets, capitalization, gross revenue or profit in any
one of the two most recent fiscal years represents (directly or indirectly
through subsidiaries) assets or activities located in Latin America; or

* Securities of Latin American issuers, as defined above, in the form of
depositary shares.

Although the Fund may participate in markets throughout Latin America, under
present conditions the Fund expects to focus its investments in Argentina,
Brazil, Chile, Mexico and Peru. In the opinion of the Adviser, these five
countries offer the most developed capital markets in Latin America. The Fund
may invest in other countries in Latin America when the Adviser deems it
appropriate. The Fund intends to allocate investments among at least three
countries at all times and does not expect to concentrate investments in any
particular industry.

The Fund's equity investments are common stock, preferred stock (either
convertible or non-convertible), depositary receipts and warrants. These may be
restricted securities and may also be purchased through rights. Securities may
be listed on securities exchanges, traded over-the-counter, or have no organized
market.

The Fund may invest in debt securities when management anticipates that the
potential for capital appreciation is likely to equal or exceed that of equity
securities. Capital appreciation in debt securities may arise from a favorable
change in relative foreign exchange rates, in relative interest rate levels, or
in the creditworthiness of issuers. Receipt of income from such debt securities
is incidental to the Fund's objective of long-term capital appreciation. Most
debt securities in which the Fund invests are not rated. When debt securities
are rated, it is expected that such ratings will generally be below
investment-grade; that is, rated below Baa by Moody's or below BBB by S&P. For
more information about the debt securities in which the Fund may invest,
including risks, please see "Additional information about policies and

26
<PAGE>

investments --Risk factors."

The Fund may invest up to 35% of its total assets in the equity securities of
U.S. and other non-Latin American issuers. In evaluating non-Latin American
investments, the Adviser seeks investments where an issuer's Latin American
business activities and the impact of developments in Latin America may have a
positive effect on the issuer's business results.

In selecting companies for investment, the Fund typically evaluates industry
trends, a company's financial strength, its competitive position in domestic and
export markets, technology, recent developments and profitability, together with
overall growth prospects. Other considerations generally include quality and
depth of management, government regulation, and availability and cost of labor
and raw materials. Investment decisions are made without regard to arbitrary
criteria as to minimum asset size, debt-equity ratios or dividend history of
portfolio companies.

The allocation between equity and debt, and among countries in Latin America,
varies based on a number of factors, including?: expected rates of economic and
corporate profit growth; past performance and current and comparative valuations
in Latin American capital markets; the level and anticipated direction of
interest rates; changes or anticipated changes in Latin American government
policy; and the condition of the balance of payments and changes in the terms of
trade. The Fund, in seeking undervalued markets or individual securities, also
considers the effects of past economic crises or ongoing financial and political
uncertainties.

To provide for redemptions, or in anticipation of investment in Latin American
securities, the Fund may hold cash or cash equivalents (in U.S. dollars or
foreign currencies) and other short-term securities, including money market
securities denominated in U.S. dollars or foreign currencies. In addition, to
provide for redemptions or distributions, the Fund may borrow from banks in an
amount not exceeding the value of one-third of the Fund's total assets. The Fund
does not expect to borrow for investment purposes. The Fund may assume a
defensive position when, due to political or other factors, the Adviser
determines that opportunities for capital appreciation in Latin American markets
would be significantly limited over an extended period or that investing in
those markets poses undue risk to investors. The Fund may, for temporary
defensive purposes, invest up to 100% of its assets in cash and money market
instruments or invest all or a portion of its assets in securities of U.S. or
other non-Latin American issuers when the Adviser deems such a position
advisable in light of economic or market conditions. The Fund may also invest in
closed-end investment companies investing primarily in Latin America. In
addition, the Fund may invest in loan participations and assignments,
when-issued securities, convertible securities and repurchase agreements and may
engage in strategic transactions.

Why invest in the Fund?

The Fund seeks to take advantage of evolving economic and political trends in
Latin America. These trends are largely a result of efforts by Latin American
governments to institute democratic and market-oriented economic reforms.

Although the pace and success in accomplishing these objectives vary
significantly throughout Latin America, there has been a general trend in recent
years towards reducing government's role in economic affairs and creating a
business environment conducive to investment and growth. To take better
advantage of Latin America's abundant natural resources and other strengths,
many countries in the region have established policies to control inflation,
reduce government deficits and external debt, stabilize currency exchange rates,
reduce taxes and interest rates, and modernize and open securities markets.
Governments have also privatized

(Continued on page 30)

27
<PAGE>

Purchases
<TABLE>
<CAPTION>
<C> <C>
Opening
an account Minimum initial investment: $1,000; IRAs $500
Group retirement plans (401(k), 403(b), etc.) have similar or lower minimums.
See appropriate plan literature.

Make checks o By Mail Send your completed and signed application and check
payable to "The
Scudder Funds." by regular mail to: or by express, registered,
or certified mail to:

The Scudder Funds Scudder Shareholder Service
P.O. Box 2291 Center
Boston, MA 42 Longwater Drive
02107-2291 Norwell, MA
02061-1612

o By Wire Please see Transaction information--Purchasing shares-- By
wire for details, including the ABA wire transfer number. Then call
1-800-225-5163 for instructions.

o In Person Visit one of our Funds Centers to complete your application with the help
of a Scudder representative. Funds Center locations are listed under
Shareholder benefits.

-----------------------------------------------------------------------------------------------------------------------
Purchasing
additional shares Minimum additional investment: $100; IRAs $50
Group retirement plans (401(k), 403(b), etc.) have similar or lower minimums.
See appropriate plan literature.

Make checks o By Mail Send a check with a Scudder investment slip, or with a
payable to "The letter of instruction including your account number and the
Scudder Funds complete Fund name, to the appropriate address listed above.

o By Wire Please see Transaction information--Purchasing shares-- By
wire for details, including the ABA wire transfer number.

o In Person Visit one of our Funds Centers to make an additional
investment in your Scudder fund account. Funds Center locations are
listed under Shareholder benefits.

o By Telephone Please see Transaction information--Purchasing shares-- By
AutoBuy or By telephone order for more details.

o By Automatic You may arrange to make investments on a regular basis through automatic
Investment Plan Plan deductions from your bank checking account. Please call
($50 minimum) 1-800-225-5163 for more information and an enrollment form.

28
<PAGE>

Exchanges and redemptions

Exchanging shares Minimum investments: $1,000 to establish a new account;
$100 to exchange among existing accounts

o By Telephone To speak with a service representative, call 1-800-225-5163 from
8 a.m. to 8 p.m. eastern time or to access SAIL(TM), Scudder's Automated
Information Line, call 1-800-343-2890 (24 hours a day).

There may be a o By Mail Print or type your instructions and include:
2% fee payable or Fax - the name of the Fund and the account number you are exchanging from;
to the Scudder - your name(s) and address as they appear on your account;
Emerging Markets - the dollar amount or number of shares you wish to exchange;
Growth Fund or - the name of the Fund you are exchanging into;
the Scudder - your signature(s) as it appears on your account; and
Latin America - a daytime telephone number.
Fund for
exchanges of Send your instructions
shares held less
than one year. by regular mail to: or by express, registered, or by fax to:
or certified mail to:

The Scudder Funds Scudder Shareholder 1-800-821-6234
P.O. Box 2291 Service Center
Boston, MA 02107-2291 42 Longwater Drive
Norwell, MA
02061-1612

-----------------------------------------------------------------------------------------------------------------------
Redeeming shares o By Telephone To speak with a service representative, call 1-800-225-5163 from 8 a.m. to 8 p.m.
eastern time or to access SAIL(TM), Scudder's Automated Information Line, call
1-800-343-2890 (24 hours a day). You may have redemption proceeds sent to your
predesignated bank account, or redemption proceeds of up to $50,000 sent to your
address of record.

There may be a o By Mail Send your instructions for redemption to the appropriate address or fax number
2% fee payable or Fax above and include:
to the Scudder - the name of the Fund and account number you are redeeming from;
Emerging Markets - your name(s) and address as they appear on your account;
Growth Fund or - the dollar amount or number of shares you wish to redeem;
the Scudder - your signature(s) as it appears on your account; and
Latin America - a daytime telephone number.
Fund for
redemption of A signature guarantee is required for redemptions over $50,000. See Transaction
shares held less information--Redeeming shares.
than one year.
o By Automatic You may arrange to receive automatic cash payments periodically. Call 1-800-225-5163 for
Withdrawal Plan more information and an enrollment form.

29
</TABLE>
<PAGE>

Scudder Latin America Fund (cont'd)

(Continued from page 27)

state-owned enterprises, including telephone companies, utilities, banks,
petrochemical concerns and railroads, and are beginning to invest heavily in
infrastructure, which is necessary for a strong economy. In some Latin American
countries these initiatives have already led to more stable economic conditions,
stronger economic growth, reduction of capital outflows, and increased interest
by foreign investors in Latin America, all of which have helped boost capital
market returns in recent years.

Investors should be aware that participation in the Fund involves special
considerations and risks not typically associated with a mutual fund investing
principally in the securities of U.S. issuers. However, for investors who can
accept the risks of Latin American investing and have a long-term investment
horizon, the Fund offers the potential for substantial capital appreciation over
time. See "Additional information about policies and investments--Risk factors."

Scudder Pacific Opportunities Fund

Investment objective and policies

Scudder Pacific Opportunities Fund seeks long-term growth of capital through
investment primarily in the equity securities of Pacific Basin companies,
excluding Japan. The Fund's investment program focuses on the smaller, emerging
markets in this region of the world. The Fund is appropriate for no-load
investors seeking to benefit from economic growth in the Pacific Basin, but who
do not want direct exposure to the Japanese market. An investment in the Fund
entails above-average investment risk.

Investments

The Fund invests, under normal market conditions, at least 65% of its assets in
the equity securities of Pacific Basin companies. Pacific Basin countries
include Australia, the Peoples Republic of China, India, Indonesia, Malaysia,
New Zealand, the Philippines, Sri Lanka, Pakistan and Thailand, as well as Hong
Kong, Singapore, South Korea and Taiwan--the so-called "four tigers." The Fund
may invest in other countries in the Pacific Basin when their markets become
sufficiently developed. The Fund will not, however, invest in Japanese
securities. The Fund intends to allocate investments among at least three
countries at all times and does not expect to concentrate investments in any
particular industry.

The Fund defines securities of Pacific Basin companies as follows:

* Securities of companies organized under the laws of a Pacific Basin country
or for which the principal securities trading market is in the Pacific
Basin; or

* Securities of companies, wherever organized, when at least 50% of a
company's non-current assets, capitalization, gross revenue or profit in
any one of the two most recent fiscal years represents (directly or
indirectly through subsidiaries) assets or activities located in the
Pacific Basin.

The Fund's equity investments are common stock, preferred stock (either
convertible or non-convertible), depositary receipts and warrants. These may be
restricted securities. Equity securities may also be purchased through rights.
Securities may be listed on securities exchanges, traded over-the-counter or
have no organized market.

The Fund may invest up to 35% of its total assets in foreign and domestic debt
securities if the Adviser determines that the capital appreciation of debt
securities is likely to equal or exceed the capital appreciation of equity
securities. The Fund may purchase bonds rated Aaa, Aa or A by Moody's, or AAA,
AA or A by S&P or, if unrated, of equivalent quality as determined by the
Adviser. Should the rating of a security in the Fund's portfolio be downgraded,

30
<PAGE>

the Adviser will determine whether it is in the best interest of the Fund to
retain or dispose of such security.

Under normal market conditions, the Fund may invest up to 35% of its assets in
equity securities of U.S. and other non-Pacific Basin issuers (excluding Japan).
In evaluating non-Pacific Basin investments, the Adviser seeks investments where
an issuer's Pacific Basin business activities and the impact of developments in
the Pacific Basin may have a positive effect on the issuer's business results.
The Fund may also purchase shares of closed-end investment companies that invest
primarily in the Pacific Basin. In addition, the Fund may invest in when-issued
securities and convertible securities and may engage in strategic transactions.
For temporary defensive purposes, the Fund may hold without limit debt
instruments as well as cash and cash equivalents, including foreign and domestic
money market instruments, short-term government and corporate obligations, and
repurchase agreements when the Adviser deems such a position advisable in light
of economic or market conditions.

More information about investment techniques is provided under "Additional
information about policies and investments."

Investment strategy

The Adviser seeks to identify companies with favorable potential for
appreciation through growing earnings or market recognition over time. While
these companies may be among the largest in their local markets, they may be
small by the standards of U.S. market capitalization.

The Adviser evaluates investments for the Fund from both a macroeconomic and a
microeconomic perspective, using extensive field research. Macroeconomic
research includes a study of the economic fundamentals of each country and an
examination of regional themes such as growing trade, increases in direct
foreign investment and deregulation of capital markets. Understanding regional
themes allows the Adviser to identify the industries and sectors most likely to
benefit from the political, social and economic changes taking place across the
Pacific Basin. Microeconomic analysis identifies individual companies with
exceptional business prospects, which may be due to market dominance, unique
franchises, high growth potential, or innovative services, products or
technologies.

Why invest in the Fund?

The Fund is designed for investors wishing to participate in the investment
opportunities afforded by the smaller, emerging markets in the Pacific Basin.
The Adviser believes that the economies of the Pacific Basin will continue to
have among the world's fastest rates of economic growth over the next decade.
These economies are generally characterized by large, hard-working labor pools,
a well-educated and growing middle class and high savings rates. They are
benefiting from rapid growth of intra-regional trade, one of the most important
economic developments in this part of the world in recent years, and a high
level of infrastructure development. Many companies in the Pacific Basin are
experiencing rising productivity and profit growth due to increased focus on
higher value added, more profitable product lines and enhanced capital
investment in technology. In addition, governments are opening capital markets
to foreign investors region-wide. This combination of factors is attracting
foreign capital to the region and fueling growth that is presently more rapid
than that of Japan, the U.S. and other more developed countries. As a result,
the stock markets in many of these countries have, in recent years, outperformed
our own.

The Fund involves above-average risk. It is designed as a long-term investment
and not for short-term trading purposes, and should not be considered a complete
investment program.

However, movements in the Fund's share price may have a low correlation with
movements in the U.S. markets, so adding shares of the Fund to an investor's

31
<PAGE>

Scudder Pacific Opportunities Fund (cont'd)

portfolio may increase the investor's portfolio diversification, and moderate
overall portfolio risk.

Investing directly in foreign securities is usually impractical for individual
investors. Investors frequently find it difficult to arrange purchases and
sales, obtain current market, industry or corporate information, hold securities
for safekeeping and convert profits from foreign currencies to U.S. dollars. The
Fund manages these tasks for the investor. The Adviser has had long experience
in dealing in foreign markets and believes the Fund affords a convenient and
cost-effective method of investing in the more dynamic, developing countries in
the Pacific Basin region. See "Additional information about policies and
investments--Risk factors."

Special risk considerations

Global and international investing involves economic and political
considerations not typically found in U.S. markets. These considerations include
changes in exchange rates and exchange rate controls (which may include
suspension of the ability to transfer currency from a given country), costs
incurred in conversions between currencies, nonnegotiable brokerage commissions,
less publicly available information, different accounting standards, lower
trading volume and greater market volatility, the difficulty of enforcing
obligations in other countries, less securities regulation, different tax
provisions (including withholding on dividends paid to a Fund), war,
expropriation, political and social instability, and diplomatic developments. In
addition, communications between the U.S. and foreign countries may be less
reliable than within the U.S., thus increasing the risk of delayed settlements
of portfolio transactions or loss of certificates for portfolio securities.

Non-domestic markets also have different clearance and settlement procedures,
and in certain markets there have been times when settlements have not kept pace
with the volume of securities transactions, making it difficult to conduct such
transactions. Delays in settlement could result in temporary periods when a
portion of the assets of a Fund is uninvested and no return is earned thereon.

The inability of a Fund to make intended security purchases due to settlement
problems could cause the Fund to miss attractive investment opportunities.
Inability to dispose of portfolio securities due to settlement problems could
result either in losses to a Fund due to subsequent declines in the value of
those securities or, if the Fund has entered into a contract to sell a security,
in possible liability to the purchaser. Costs associated with transactions in
foreign securities are generally higher than costs associated with transactions
in U.S. securities.

Certain non-domestic markets may require governmental approval for the
repatriation of investment income, capital or the proceeds of sales of
securities by foreign investors. In addition, if a deterioration occurs in a
non-domestic market's balance of payments or for other reasons, a country could
impose temporary restrictions on foreign capital remittances. A Fund could be
adversely affected by delays in, or a refusal to grant, any required
governmental approval for repatriation of capital, as well as by the application
to the Fund of any restrictions on investments.

Throughout the last decade many non-domestic markets have experienced, and
continue to experience, high rates of inflation. In certain countries inflation
has at times accelerated rapidly to hyperinflationary levels, creating a
negative interest rate environment and sharply eroding the value of outstanding
financial assets in those countries. Increases in inflation could have an

32
<PAGE>

adverse effect on a Fund's non-dollar denominated securities.

Individual foreign economies may differ favorably or unfavorably from the U.S.
economy in such respects as growth of gross domestic product, rate of inflation,
capital reinvestment, resources, self-sufficiency and balance of payments
position. The securities markets, values of securities, yields and risks
associated with securities markets in different countries may change
independently of each other.

The possibility of revolution and the dependence on foreign economic assistance
may be greater in these countries than in developed countries. The Adviser seeks
to mitigate the risks associated with these considerations through
diversification and active professional management.

Each Fund is designed for long-term investors who can accept international
investment risk. Since the Funds normally will be invested in both U.S. and
foreign securities markets, changes in a Fund's share price may have a low
correlation with movements in the U.S. markets. A Fund's share price will
reflect the movements of both the different stock and bond markets in which it
is invested and the currencies in which the investments are denominated. As with
any long-term investment, the value of shares when sold may be higher or lower
than when purchased. Because of the Funds' investment policies and the
investment considerations discussed above, investment in shares of a Fund should
not be considered a complete investment program. Please see "Additional
information about policies and investments--Risk factors."

Additional information about policies and investments

Investment restrictions

Each Fund has adopted certain fundamental policies which may not be changed
without a vote of shareholders and which are designed to reduce the Funds'
investment risk.

Each Fund may not borrow money except as a temporary measure for extraordinary
or emergency purposes. Each Fund may not make loans except through the lending
of portfolio securities, the purchase of debt securities or through repurchase
agreements.

A complete description of these and other policies and restrictions is contained
under "Investment Restrictions" in each Fund's Statement of Additional
Information.

Convertible securities

Each of the Funds, with the exception of Scudder International Fund, may invest
in convertible securities which may offer higher income than the common stocks
into which they are convertible. The convertible securities in which each Fund,
with the exception of Scudder Latin America Fund, may invest consist of bonds,
notes, debentures and preferred stocks which may be converted or exchanged at a
stated or determinable exchange ratio into underlying shares of common stock.
The convertible securities in which the Scudder Latin America Fund may invest
include fixed-income or zero coupon debt securities which may be converted or
exchanged at a stated or determinable exchange ratio into underlying shares of
common stock. Prior to their conversion, convertible securities may have
characteristics similar to both nonconvertible debt securities and equity
securities.

When-issued securities

Scudder Emerging Markets Growth Fund, Scudder Greater Europe Growth Fund,
Scudder Latin America Fund and Scudder Pacific Opportunities Fund may purchase
equity and debt securities on a when-issued or forward delivery basis, for
payment and delivery at a later date. The price and yield are generally fixed on
the date of commitment to purchase. During the period between purchase and
settlement, no interest accrues to the Fund. At the time of settlement, the
market value of the security may be more or less than the purchase price.

33
<PAGE>

Additional information about policies and investments (cont'd)

Debt securities

Although the debt securities in which the Scudder Emerging Markets Growth Fund
invests are predominantly denominated in U.S. dollars, the Fund may also invest
in debt securities denominated in foreign currencies. Such securities may be
rated below investment-grade; that is, rated below Baa by Moody's or below BBB
by S&P, or may be unrated but equivalent to those rated below investment-grade
by internationally recognized rating agencies such as S&P or Moody's. The Fund
may invest in "Brady Bonds," which are debt securities issued under the
framework of the Brady Plan as a mechanism for debtor countries to restructure
their outstanding bank loans. Most "Brady Bonds" have their principal
collaterized by zero coupon U.S. Treasury bonds.

Illiquid securities

Scudder Emerging Markets Growth Fund may invest a portion of its assets in
securities for which there is not an active trading market, or which have resale
restrictions ("restricted securities"). These types of securities generally
offer a higher return than more readily marketable securities, but carry the
risk that the Fund may not be able to dispose of them at an advantageous time or
price. Some restricted securities purchased by the Fund, however, may be
considered liquid despite resale restrictions, since they can be sold to other
qualified institutional buyers under a rule of the Securities and Exchange
Commission (Rule 144A). Upon approval from the Fund's Board of Directors, the
Adviser may determine which Rule 144A securities will be considered liquid.

Repurchase agreements

As a means of earning income for periods as short as overnight, each Fund may
enter into repurchase agreements with selected banks and broker/dealers. Under a
repurchase agreement, a Fund acquires securities, subject to the seller's
agreement to repurchase them at a specified time and price. Scudder Emerging
Markets Growth Fund, Scudder Greater Europe Growth Fund and Scudder Latin
America Fund may also enter into repurchase commitments for investment purposes
for periods of 30 days or more. Such commitments involve investment risk similar
to that of debt securities. Please see "Risk factors--Repurchase Agreements" for
more information.

Special situation securities

From time to time, Scudder Global Discovery Fund may invest in equity or debt
securities issued by companies that are determined by the Adviser to possess
"special situation" characteristics. In general, a special situation company is
a company whose securities are expected to increase in value solely by reason of
a development particularly or uniquely applicable to the company. Developments
that may create special situations include, among others, a liquidation,
reorganization, recapitalization or merger, material litigation, technological
breakthrough and new management or management policies. The principal risk
associated with investments in special situation companies is that the
anticipated development thought to create the special situation may not occur
and the investments therefore may not appreciate in value or may decline in
value.

Loan participations and assignments

Scudder Latin America Fund may invest in fixed and floating rate loans arranged
through private negotiations between an issuer of emerging market debt
instruments and one or more financial institutions ("lenders"). Generally, the
Fund's investments in loans are expected to take the form of loan participations
and assignments of portions of loans from third parties.

When investing in a participation, the Fund will typically have the right to
receive payments only from the lender to the extent the lender receives

34
<PAGE>

payments from the borrower, and not from the borrower itself. Likewise, the Fund
typically will be able to enforce its rights only through the lender, and not
directly against the borrower. As a result, the Fund will assume the credit risk
of both the borrower and the lender that is selling the participation.

When the Fund purchases assignments from lenders, it will acquire direct rights
against the borrower, but these rights and the Fund's obligations may differ
from, and be more limited than, those held by the assigning lender.

Loan participations and assignments may be illiquid. Please refer to "Risk
factors--Illiquid securities" for more information.

Strategic Transactions and derivatives

Each of the Funds may, but are not required to, utilize various other investment
strategies as described below to hedge various market risks (such as interest
rates, currency exchange rates and broad or specific equity or fixed-income
market movements), to manage the effective maturity or duration of fixed-income
securities in each Fund's portfolio or to enhance potential gain. These
strategies may be executed through the use of derivative contracts. Such
strategies are generally accepted as a part of modern portfolio management and
are regularly utilized by many mutual funds and other institutional investors.
Techniques and instruments may change over time as new instruments and
strategies are developed or regulatory changes occur.

In the course of pursuing these investment strategies, each Fund may purchase
and sell exchange-listed and over-the-counter put and call options on
securities, equity and fixed-income indices and other financial instruments,
purchase and sell financial futures contracts and options thereon, enter into
various interest rate transactions such as swaps, caps, floors or collars and
enter into various currency transactions such as currency forward contracts,
currency futures contracts, currency swaps or options on currencies or currency
futures (collectively, all the above are called "Strategic Transactions").

Strategic Transactions may be used without limit to attempt to protect against
possible changes in the market value of securities held in or to be purchased
for each Fund's portfolio resulting from securities markets or currency exchange
rate fluctuations, to protect the Funds' unrealized gains in the value of their
portfolio securities, to facilitate the sale of such securities for investment
purposes, to manage the effective maturity or duration of fixed-income
securities in each Fund's portfolio, or to establish a position in the
derivatives markets as a temporary substitute for purchasing or selling
particular securities. Some Strategic Transactions may also be used to enhance
potential gain although no more than 5% of each Fund's assets will be committed
to Strategic Transactions entered into for non-hedging purposes. Any or all of
these investment techniques may be used at any time and in any combination, and
there is no particular strategy that dictates the use of one technique rather
than another, as use of any Strategic Transaction is a function of numerous
variables including market conditions. The ability of the Funds to utilize these
Strategic Transactions successfully will depend on the Adviser's ability to
predict pertinent market movements, which cannot be assured. Each Fund will
comply with applicable regulatory requirements when implementing these
strategies, techniques and instruments. Strategic Transactions involving
financial futures and options thereon will be purchased, sold or entered into
only for bona fide hedging, risk management or portfolio management purposes and
not for speculative purposes. Please refer to "Risk factors--Strategic
Transactions and derivatives" for more information.

Risk factors

Each Fund's risks are determined by the nature of the securities held and the
portfolio management strategies used by the Adviser. The following are

35
<PAGE>

Additional information about policies and investments (cont'd)

descriptions of certain risks related to the investments and techniques that a
Fund may use from time to time.

Convertible securities. While convertible securities generally offer lower
yields than nonconvertible debt securities of similar quality, their prices may
reflect changes in the value of the underlying common stock. Convertible
securities generally entail less risk than the issuer's common stock.

Debt securities. Scudder Global Fund may invest no more than 5% of its total
assets in debt securities rated BBB or Baa (investment-grade) or below, or in
unrated securities. Scudder Global Discovery Fund may invest no more than 5% of
its net assets in debt securities rated below investment-grade. Scudder Greater
Europe Growth Fund may invest up to 20% of its total assets in debt securities
which are unrated, rated or the equivalent of those rated below
investment-grade. All three Funds may invest in securities which are rated as
low as C by Moody's or D by S&P at the time of purchase.

Scudder Latin America Fund may invest in debt securities which are unrated,
rated or the equivalent of those rated below investment-grade and will invest no
more than 10% of its net assets in securities rated B or lower by Moody's or
S&P, and may also invest in securities rated C by Moody's or D by S&P.

Scudder International Fund may invest no more than 5% of its total assets in
debt securities which are rated below investment-grade and may invest in
securities which are rated C by Moody's or D by S&P or, if unrated, are of
equivalent quality.

Scudder Emerging Markets Growth Fund may invest up to 35% of its total assets in
debt securities which are rated below investment- grade, or may be unrated but
equivalent to those rated below investment-grade. The Fund may invest in
securities whose quality is comparable to securities rated as low as C by
Moody's or D by S&P, which may be in default with respect to principal or
interest.

Securities rated below Baa by Moody's and below BBB by S&P are commonly referred
to as "junk bonds" and involve greater price volatility and higher degrees of
speculation with respect to the payment of principal and interest than higher
quality fixed-income securities. Moody's considers bonds it rates Baa to have
speculative elements as well as investment-grade characteristics. Securities
rated C by Moody's or D by S&P may be in default with respect to payment of
principal and interest. The market price of such lower-rated debt securities may
decline significantly in periods of general economic difficulty. In addition,
the trading market for these securities is generally less liquid than for higher
rated securities and a Fund may have difficulty disposing of these securities at
the time it wishes to do so. The lack of a liquid secondary market for certain
securities may also make it more difficult for a Fund to obtain accurate market
quotations for purposes of valuing its portfolio and calculating its net asset
value. The lower the quality of such debt securities, the greater their risks
render them like equity securities. Also, longer maturity bonds tend to
fluctuate more in price as interest rates change than do short-term bonds,
providing both opportunity and risk.

Non-diversified investment company. Each of the Scudder Emerging Markets Growth
Fund, Scudder Greater Europe Growth Fund, Scudder Latin America Fund and Scudder
Pacific Opportunities Fund is classified as a non-diversified investment company
under the Investment Company Act of 1940 (the "1940 Act"), which means that each
Fund is not limited by the 1940 Act in the proportion of its assets that it may
invest in the obligations of a single issuer. The investment of a large
percentage of a Fund's assets in the securities of a small number of issuers may
cause a Fund's share price to fluctuate more than that of a diversified

36
<PAGE>

investment company.

Zero coupon securities. Zero coupon securities are subject to greater market
value fluctuations from changing interest rates than debt obligations of
comparable maturities which make current cash distributions of interest.

Repurchase agreements. If the seller under a repurchase agreement becomes
insolvent, a Fund's right to dispose of the securities may be restricted. In the
event of the commencement of bankruptcy or insolvency proceedings with respect
to the seller of the securities before repurchase of the securities under a
repurchase agreement, a Fund may encounter delay and incur costs before being
able to sell the securities. Also, if a seller defaults, the value of such
securities may decline before a Fund is able to dispose of them.

Foreign securities. Investments in foreign securities involve special
considerations due to more limited information, higher brokerage costs,
different accounting standards, thinner trading markets, the greater potential
for insider trading and stock price manipulation, and the likely impact of
foreign taxes on the income and gains from securities. They may also entail
certain other risks, such as the possibility of one or more of the following:
imposition of dividend or interest withholding or confiscatory taxes; currency
blockages or transfer restrictions; exchange closure; expropriation,
nationalization, military coups or other adverse political or economic
developments; less government supervision and regulation of securities
exchanges, brokers and listed companies; and the difficulty of enforcing
obligations in other countries. Purchases of foreign securities are usually made
in foreign currencies and, as a result, a Fund may incur currency conversion
costs and may be affected favorably or unfavorably by changes in the value of
foreign currencies against the U.S. dollar. Further, it may be more difficult
for a Fund's agents to keep currently informed about corporate actions which may
affect the prices of portfolio securities. Communications between the U.S. and
foreign countries may be less reliable than within the U.S., increasing the risk
of delayed settlements of portfolio transactions or loss of certificates for
portfolio securities. A Fund's ability and decisions to purchase and sell
portfolio securities may be affected by laws or regulations relating to the
convertibility and repatriation of assets. Some countries restrict the extent to
which foreigners may invest in their securities markets.

Currency movements. Purchases of foreign securities are usually made in foreign
currencies and, as a result, a Fund may incur currency conversion costs and may
be affected favorably or unfavorably by changes in the value of foreign
currencies against the U.S. dollar. Should the U.S. dollar appreciate against
foreign currencies, then the value of a Fund's securities holdings would
depreciate, all other things being equal. If the reverse is true, then a Fund's
holdings would appreciate in value.

Illiquid securities. The absence of a trading market can make it difficult to
ascertain a market value for illiquid securities. Disposing of illiquid
securities may involve time-consuming negotiation and legal expenses, and it may
be difficult or impossible for a Fund to sell them promptly at an acceptable
price.

Borrowing. Although the principal of a Fund's borrowing will be fixed, a Fund's
assets may change in value during the time a borrowing is outstanding,
increasing exposure to capital risk.

Investing in small companies. There is typically less publicly available
information concerning foreign and smaller companies than for domestic and
larger, more established companies. Some small companies have limited product
lines, distribution channels and financial and managerial resources. Also,
because smaller companies normally have fewer shares outstanding than larger
companies and trade less frequently, it may be more difficult for a Fund to buy

37
<PAGE>
Additional information about policies and investments (cont'd)

and sell significant amounts of such shares without an unfavorable impact on
prevailing market prices. Some of the companies in which a Fund may invest may
distribute, sell or produce products which have recently been brought to market
and may be dependent on key personnel with varying degrees of experience.

Investing in Latin America. The Adviser believes that investment opportunities
may result from recent trends in Latin America encouraging greater market
orientation and less governmental intervention in economic affairs. Investors,
however, should be aware that the Latin American economies have experienced
considerable difficulties in the past decade. Although there have been
significant improvements in recent years, the Latin American economies continue
to experience challenging problems, including high inflation rates and high
interest rates relative to the U.S. The emergence of the Latin American
economies and securities markets will require continued economic and fiscal
discipline which has been lacking at times in the past, as well as stable
political and social conditions. Recovery may also be influenced by
international economic conditions, particularly those in the U.S., and by world
prices for oil and other commodities. There is no assurance that recent economic
initiatives will be successful.

Certain risks associated with international investments and investing in
smaller, developing capital markets are heightened for investments in Latin
American countries. For example, some of the currencies of Latin American
countries have experienced steady devaluations relative to the U.S. dollar, and
major adjustments have been made in certain of these currencies periodically. In
addition, although there is a trend toward less government involvement in
commerce, governments of many Latin American countries have exercised and
continue to exercise substantial influence over many aspects of the private
sector. In certain cases, the government still owns or controls many companies,
including some of the largest in the country. Accordingly, government actions in
the future could have a significant effect on economic conditions in Latin
American countries, which could affect private sector companies and a Fund, as
well as the value of securities in the Fund's portfolio.

Most Latin American countries have experienced substantial, and in some periods,
extremely high, rates of inflation for many years. Inflation and rapid
fluctuations in inflation rates have had and may continue to have negative
effects on the economies and securities markets of certain Latin American
countries.

Certain Latin American countries are among the largest debtors to commercial
banks and foreign governments. Some of these countries have in the past
defaulted on their sovereign debt. Holders of sovereign debt may be requested to
participate in the rescheduling of such debt and to extend further loans to
governmental entities. There is no bankruptcy proceeding by which sovereign debt
on which governmental entities have defaulted may be collected in whole or in
part.

The limited size of many Latin American securities markets and limited trading
volume in issuers compared to the volume of trading in U.S. securities could
cause prices to be erratic for reasons apart from factors that affect the
quality of securities.

The portion of a Fund's assets invested directly in Chile may be less than the
portions invested in other countries in Latin America because, at present,
capital invested in Chile normally cannot be repatriated for as long as five
years.

If a Fund invests in securities denominated in currencies of Latin American
countries, then changes in the value of these currencies against the U.S. dollar
will result in corresponding changes in the U.S. dollar value of the Fund's

38
<PAGE>

assets denominated in those currencies.

Some Latin American countries also may have managed currencies, which are not
free floating against the U.S. dollar. In addition, there is risk that certain
Latin American countries may restrict the free conversion of their currencies
into other currencies. Further, it generally will not be possible to reduce a
Fund's Latin American currency risk through hedging. Any devaluations in the
currencies in which a Fund's portfolio securities are denominated may have a
detrimental impact on the Fund's net asset value.

Investing in the Pacific Basin. Investments in Pacific Basin countries are
susceptible to political and economic factors affecting issuers in the region.
Similarly, some Pacific Basin economies are directly affected by Japanese
capital investment in the region and by Japanese consumer demands. This in turn
may affect a Fund's investments in the region, even though it may not be
invested directly in Japan. Many of the countries of the Pacific Basin are
developing both economically and politically. Pacific Basin countries may have
relatively unstable governments, economies based on only a few commodities or
industries, and securities markets trading infrequently or in low volumes.

Some Pacific Basin countries restrict the extent to which foreigners may invest
in their securities markets. Securities of issuers located in some Pacific Basin
countries tend to have volatile prices and may offer significant potential for
loss as well as gain. Further, certain companies in the Pacific Basin may not
have firmly established product markets, may lack depth of management, or may be
more vulnerable to political or economic developments such as nationalization of
their own industries.

Investing in Europe. A Fund's performance is susceptible to political, social
and economic factors affecting issuers in European countries. Such factors may
include, but are not limited to: growth of GDP or GNP, rate of inflation,
capital reinvestment, resource self-sufficiency and balance of payments
position, as well as interest and monetary exchange rates among European
countries.

Eastern European countries and certain Southern European countries are
considered to be emerging markets. Securities traded in certain emerging
European markets may be subject to additional risks due to political and
economic reforms including efforts to decentralize the economic decision-making
process and move toward a market-oriented economy. Additionally, the
inexperience of financial intermediaries, lack of modern technology and the
possibility of permanent or temporary termination of trading of securities may
affect a Fund's performance. To the extent that a Fund purchases equity
securities of smaller companies, such securities may experience greater
volatility and have limited liquidity.

Former communist regimes of a number of Eastern European countries had
expropriated a large amount of property, the claims on which have not been
entirely settled. There can be no assurance that a Fund's investments in Eastern
Europe would not also be expropriated, nationalized or otherwise confiscated.
Finally, any change in the leadership or policies of Eastern European countries,
or the countries that exercise a significant influence over those countries, may
halt the expansion of or reverse the liberalization of foreign investment
policies now occurring and adversely affect existing investment opportunity.

Although the governments of certain Eastern European countries currently are
implementing or considering reforms directed at political and economic
liberalization, there can be no assurance that these reforms will continue or
achieve their goals.

Strategic Transactions and derivatives. Strategic Transactions, including
derivative contracts, have risks associated with them including possible default
by the other party to the transaction, illiquidity and, to the extent the

39
<PAGE>

Additional information about policies and investments (cont'd)

Adviser's view as to certain market movements is incorrect, the risk that the
use of such Strategic Transactions could result in losses greater than if they
had not been used. Use of put and call options may result in losses to a Fund,
force the sale or purchase of portfolio securities at inopportune times or for
prices higher than (in the case of put options) or lower than (in the case of
call options) current market values, limit the amount of appreciation a Fund can
realize on its investments or cause a Fund to hold a security it might otherwise
sell.

The use of currency transactions can result in a Fund incurring losses as a
result of a number of factors including the imposition of exchange controls,
suspension of settlements, or the inability to deliver or receive a specified
currency. The use of options and futures transactions entails certain other
risks. In particular, the variable degree of correlation between price movements
of futures contracts and price movements in the related portfolio position of a
Fund creates the possibility that losses on the hedging instrument may be
greater than gains in the value of a Fund's position. In addition, futures and
options markets may not be liquid in all circumstances and certain
over-the-counter options may have no markets. As a result, in certain markets, a
Fund might not be able to close out a transaction without incurring substantial
losses, if at all. Although the use of futures contracts and options
transactions for hedging should tend to minimize the risk of loss due to a
decline in the value of the hedged position, at the same time they tend to limit
any potential gain which might result from an increase in value of such
position. Finally, the daily variation margin requirements for futures contracts
would create a greater ongoing potential financial risk than would purchases of
options, where the exposure is limited to the cost of the initial premium.
Losses resulting from the use of Strategic Transactions would reduce net asset
value, and possibly income, and such losses can be greater than if the Strategic
Transactions had not been utilized. The Strategic Transactions that a Fund may
use and some of their risks are described more fully in each Fund's respective
Statement of Additional Information.

Distribution and performance information

Dividends and capital gains distributions

Scudder Global Fund and Scudder International Fund intend to distribute any
dividends from net investment income and any net realized capital gains after
utilization of capital loss carryforwards, if any, in November or December to
prevent application of a federal excise tax. An additional distribution may be
made within three months of each Fund's fiscal year end, if necessary.

Scudder Greater Europe Growth Fund intends to distribute any dividends from its
ordinary income and any net realized capital gains after utilization of capital
loss carryforwards, if any, in December. An additional distribution may be made
if necessary.

Scudder Emerging Markets Growth Fund, Scudder Global Discovery Fund, Scudder
Latin America Fund and Scudder Pacific Opportunities Fund intend to distribute
dividends from their net investment income and any net realized capital gains
after utilization of capital loss carryforwards, if any, annually in December to
prevent application of federal excise tax, although an additional distribution
may be made if required, at a later date.

Any dividends or capital gains distributions declared in October, November or
December with a record date in such a month and paid during the following
January will be treated by shareholders for federal income tax purposes as if

40
<PAGE>

received on December 31 of the calendar year declared.

According to preference, shareholders may receive distributions in cash or have
them reinvested in additional shares of the Fund. Distributions from the Scudder
Emerging Markets Growth Fund and the Scudder Latin America Fund are not subject
to the 2% redemption fee, whether paid in cash or reinvested. If an investment
is in the form of a retirement plan, all dividends and capital gains
distributions must be reinvested into the shareholder's account.

Generally, dividends from net investment income are taxable to shareholders as
ordinary income. Long-term capital gains distributions, if any, are taxable as
long-term capital gains regardless of the length of time shareholders have owned
their shares. Short-term capital gains and any other taxable income
distributions are taxable as ordinary income. Shareholders may be able to claim
a credit or deduction on their income tax returns for their pro rata portions of
qualified taxes paid by a Fund to foreign countries.

Each Fund sends detailed tax information about the amount and type of its
distributions to its shareholders by January 31 of the following year.

Performance information

From time to time, quotations of a Fund's performance may be included in
advertisements, sales literature or shareholder reports. All performance figures
are historical, show the performance of a hypothetical investment and are not
intended to indicate future performance. "Total return" is the change in value
of an investment in a Fund for a specified period. The "average annual total
return" of a Fund is the average annual compound rate of return of an investment
in a Fund assuming that the investment has been held for one year, five years
and ten years as of a stated ending date. (If a Fund has not been in operation
for at least ten years, the life of the Fund will be used where applicable.)
"Cumulative total return" represents the cumulative change in value of an
investment in a Fund for various periods. All types of total return calculations
assume that all dividends and capital gains distributions during the period were
reinvested in shares of a Fund. "Capital change" measures return from capital,
including reinvestment of any capital gains distributions but does not include
the reinvestment of dividends.

Performance for any of the seven Funds will vary based upon, among other things,
changes in market conditions and the level of a Fund's expenses.

Fund organization

Scudder Global Fund and Scudder Global Discovery Fund are diversified series of
Scudder Global Fund, Inc. (the "Global Corporation"), an open-end, management
investment company registered under the 1940 Act. The Global Corporation was
organized as a Maryland corporation in May 1986.

Scudder Emerging Markets Growth Fund, Scudder Greater Europe Growth Fund,
Scudder Latin America Fund and Scudder Pacific Opportunities Fund are
non-diversified series and Scudder International Fund is a diversified series of
Scudder International Fund, Inc. (the "International Corporation"), an open-end,
management investment company registered under the 1940 Act. The International
Corporation is a Maryland corporation whose predecessor was organized in 1953.

The activities of the Funds are supervised by their respective Boards of
Directors. Shareholders have one vote for each share held on matters on which
they are entitled to vote. The Funds are not required to and have no current
intention of holding annual shareholder meetings, although special meetings may
be called for purposes such as electing or removing Directors, changing
fundamental investment policies or approving an investment management contract.
Shareholders will be assisted in communicating with other shareholders in
connection with removing a Director as if Section 16(c) of the 1940 Act were
applicable.

41
<PAGE>
Fund organization (cont'd)

The prospectuses of each of the seven Funds are combined in this prospectus.
Each Fund offers only its own shares, yet it is possible that a Fund might
become liable for a misstatement regarding another Fund. The Directors of each
Corporation have considered this and approved the use of a combined prospectus.

Investment adviser

Each Fund retains the investment management firm of Scudder, Stevens & Clark,
Inc., a Delaware corporation, to manage the daily investment and business
affairs subject to the policies established by each Corporation's Board of
Directors. The Directors have overall responsibility for the management of the
Funds under Maryland law.

The management fees for Scudder Global Fund and Scudder International Fund are
graduated so that increases in a Fund's net assets may result in a lower average
fee rate and decreases in a Fund's net assets may result in a higher average fee
rate. The management fees are payable monthly, provided that each Fund will make
such interim payments as may be requested by the Adviser not to exceed 75% of
the amount of the fee then accrued on the books of a Fund and unpaid.

The Funds' management fees are higher than that charged to most other funds.
However, management of the Funds involves analyzing companies, markets and
economies throughout the world and the management fees are not necessarily
higher than the fees charged to funds with similar investment objectives and
policies.

Scudder Emerging Markets Growth Fund pays the Adviser an annual fee of 1.25% of
the Fund's average daily net assets. The Adviser has agreed to maintain the
annualized expenses of the Fund at no more than 2% of the average daily net
assets of the Fund until June 30, 1997.

For the fiscal year ended June 30, 1995, the Adviser received an investment
management fee of 0.97% of the average daily net assets of Scudder Global Fund.
The Adviser receives an investment management fee for these services equal, on
an annual basis, to 1.00% of the first $500 million of average daily net assets,
0.95% of such assets in excess of $500 million and 0.90% of such assets in
excess of $1 billion.

Prior to September 6, 1995, the Adviser received on an annual basis, an
investment management fee for its services equal to 1.00% of the first $500
million of average daily net assets and 0.95% of such assets in excess of $500
million.

For the fiscal year ended October 31, 1995, the Adviser received an investment
management fee of 1.10% of Scudder Global Discovery Fund's average daily net
assets.

Scudder Greater Europe Growth Fund pays the Adviser an annual fee of 1.00% of
the Fund's average daily net assets. The Adviser has agreed to maintain the
annualized expenses of the Fund at no more than 1.50% of the average daily net
assets of the Fund until February 28, 1997.

For the fiscal year ended October 31, 1995, the Adviser waived its investment
management fee. For the fiscal year ended March 31, 1995, the Adviser received
an investment management fee of 0.83% of Scudder International Fund's average
daily net assets. The Adviser receives an investment management fee for its
services equal, on an annual basis, to 0.90% of the first $500 million of
average daily net assets, 0.85% of the next $500 million of such assets, 0.80%
of the next $1 billion of such assets and 0.75% of such assets in excess of $2
billion.

Prior to September 8, 1994 the Adviser received an investment management fee
equal, on an annual basis, to 1.00% of the first $200 million of average daily
net assets; 0.90% of the next $200 million of such assets; 0.85% of the next
$400 million of such assets and 0.80% of such assets in excess of $800 million.

42
<PAGE>

Scudder Latin America Fund pays the Adviser an annual fee of 1.25% of the Fund's
average daily net assets. For the fiscal year ended October 31, 1995, the
Adviser did not impose a portion of its management fee, maintaining the
annualized expenses for the Fund at 2.08% and, accordingly, received an
investment management fee of 1.22% of the Fund's average daily net assets.

Scudder Pacific Opportunities Fund pays the Adviser an annual fee of 1.10% of
the Fund's average daily net assets.

Under each Fund's respective Investment Management Agreement with the Adviser, a
Fund is responsible for all of its expenses, including fees and expenses
incurred in connection with membership in investment company organizations;
brokers' commissions; legal, auditing and accounting expenses; taxes and
governmental fees; the fees and expenses of the transfer agent; the expenses of
and the fees for registering or qualifying shares of the Fund for sale; the fees
and expenses of Directors, officers and employees of each Corporation who are
not affiliated with the Adviser; the cost of printing and distributing reports
and notices to shareholders; and the fees and disbursements of custodians.

All of a Fund's expenses are paid out of gross investment income. Shareholders
pay no direct charges or fees for investment or administrative services.

Scudder, Stevens & Clark, Inc. is located at 345 Park Avenue, New York, New
York.

Transfer agent

Scudder Service Corporation, P.O. Box 2291, Boston, Massachusetts 02107-2291, a
subsidiary of the Adviser, is the transfer, shareholder servicing and
dividend-paying agent for the Funds.

Underwriter

Scudder Investor Services, Inc., a subsidiary of the Adviser, is the Funds'
principal underwriter. Scudder Investor Services, Inc. confirms, as agent, all
purchases of shares of the Funds. Scudder Investor Relations is a telephone
information service provided by Scudder Investor Services, Inc.

Custodian

Brown Brothers Harriman & Co. is the custodian for each of the Funds, with the
exception of Scudder Global Fund, whose custodian is State Street Bank and Trust
Company.

Fund accounting agent

Scudder Fund Accounting Corporation, a subsidiary of the Adviser, is responsible
for determining the daily net asset value per share and maintaining the general
accounting records of the Funds.

Transaction information

Purchasing shares

Purchases are executed at the next calculated net asset value per share after
the Funds' transfer agent receives the purchase request in good order. Purchases
are made in full and fractional shares. (See "Share price.")

By check. If you purchase shares with a check that does not clear, your purchase
will be canceled and you will be subject to any losses or fees incurred in the
transaction. Checks must be drawn on or payable through a U.S. bank. If you
purchase shares by check and redeem them within seven business days of purchase,
the Fund may hold redemption proceeds until the purchase check has cleared. If
you purchase shares by federal funds wire, you may avoid this delay. Redemption
requests by telephone prior to the expiration of the seven-day period will not
be accepted.

By wire. To open a new account by wire, first call Scudder at 1-800-225-5163 to
obtain an account number. A representative will instruct you to send a

43
<PAGE>

Transaction information (cont'd)

completed, signed application to the transfer agent. Accounts cannot be opened
without a completed, signed application and a Scudder fund account number.
Contact your bank to arrange a wire transfer to:

The Scudder Funds
State Street Bank and Trust Company
Boston, MA 02101
ABA Number 011000028
DDA Account 9903-5552

Your wire instructions must also include:

- -- the name of the fund in which the money is to be invested,
- -- the account number of the fund, and
- -- the name(s) of the account holder(s).

The account will be established once the application and money order are
received in good order.

You may also make additional investments of $100 or more to your existing
account by wire.

By exchange. Your new account will have the same registration and address as
your existing account.

The exchange requirements for corporations, other organizations, trusts,
fiduciaries, agents, institutional investors and retirement plans may be
different from those for regular accounts. Please call 1-800-225-5163 for more
information, including information about the transfer of special account
features.

You can also make exchanges among your Scudder fund accounts on SAIL, the
Scudder Automated Information Line, by calling 1-800-343-2890.

By telephone order. Existing shareholders may purchase shares at a certain day's
price by calling 1-800-225-5163 before the close of regular trading on the New
York Stock Exchange (the "Exchange"), normally 4 p.m. eastern time, on that day.
Orders must be for $10,000 or more and cannot be for an amount greater than four
times the value of your account at the time the order is placed. A confirmation
with complete purchase information is sent shortly after your order is received.
You must include with your payment the order number given at the time the order
is placed. If payment by check or wire is not received within three business
days, the order is subject to cancellation and the shareholder will be
responsible for any loss to the Fund resulting from this cancellation. Telephone
orders are not available for shares held in Scudder IRA accounts and most other
Scudder retirement plan accounts.

By "AutoBuy." If you elected "AutoBuy" for your account, you can call toll-free
to purchase shares. The money will be automatically transferred from your
predesignated bank checking account. Your bank must be a member of the Automated
Clearing House for you to use this service. If you did not elect "AutoBuy," call
1-800-225-5163 for more information.

To purchase additional shares, call 1-800-225-5163. Purchases must be for at
least $250 but not more than $250,000. Proceeds in the amount of your purchase
will be transferred from your bank checking account in two or three business
days following your call. For requests received by the close of regular trading
on the Exchange, shares will be purchased at the net asset value per share
calculated at the close of trading on the day of your call. "AutoBuy" requests
received after the close of regular trading on the Exchange will begin their
processing and be purchased at the net asset value calculated the following
business day.

If you purchase shares by "AutoBuy" and redeem them within seven days of the
purchase, a Fund may hold the redemption proceeds for a period of up to seven
business days. If you purchase shares and there are insufficient funds in your
bank account, the purchase will be canceled and you will be subject to any
losses or fees incurred in the transaction. "AutoBuy" transactions are not

44
<PAGE>

available for Scudder IRA accounts and most other retirement plan accounts.

Redeeming shares

Each Fund allows you to redeem shares (i.e., sell them back to the Fund) without
redemption fees.

By telephone. This is the quickest and easiest way to sell Fund shares. If you
elected telephone redemption to your bank on your application, you can call to
request that federal funds be sent to your authorized bank account. If you did
not elect telephone redemption to your bank on your application, call
1-800-225-5163 for more information.

Redemption proceeds will be wired to your bank unless otherwise requested. If
your bank cannot receive federal reserve wires, redemption proceeds will be
mailed to your bank. There will be a $5 charge for all wire redemptions. You can
also make redemptions from your Scudder fund account on SAIL by calling
1-800-343-2890.

If you open an account by wire, you cannot redeem shares by telephone until the
Funds' transfer agent has received your completed and signed application.
Telephone redemption is not available for shares held in Scudder IRA accounts
and most other Scudder retirement plan accounts.

In the event that you are unable to reach a Fund by telephone, you should write
to a Fund; see "How to contact Scudder" for the address.

By "AutoSell." If you elected "AutoSell" for your account, you can call
toll-free to redeem shares. The money will be automatically transferred to your
predesignated bank checking account. Your bank must be a member of the Automated
Clearing House for you to use this service. If you did not elect "AutoSell,"
call 1-800-225-5163 for more information.

To redeem shares, call 1-800-225-5163. Redemptions must be for at least $250.
Proceeds in the amount of your redemption will be transferred to your bank
checking account in two or three business days following your call. For requests
received by the close of regular trading on the Exchange, shares will be
redeemed at the net asset value per share calculated at the close of trading on
the day of your call. "AutoSell" requests received after the close of regular
trading on the Exchange will begin their processing and be redeemed at the net
asset value calculated the following business day. "AutoSell" transactions are
not available for Scudder IRA accounts and most other retirement plan accounts.

Exchanging and redeeming shares from Scudder Emerging Markets Growth Fund or
Scudder Latin America Fund

Upon the redemption or exchange of shares held less than one year in Scudder
Emerging Markets Growth Fund, a fee of 2% of the current net asset value of the
shares will be assessed and retained by the Fund for the benefit of the
remaining shareholders. Upon the redemption or exchange of shares held less than
one year in Scudder Latin America Fund, a fee of 2% of the lower of the cost or
the current net asset value of the shares will be assessed and retained by the
Fund for the benefit of the remaining shareholders. The fee is waived for all
shares purchased through certain retirement plans, including 401(k) plans,
403(b) plans, 457 plans, Keogh accounts, and Profit Sharing and Money Purchase
Pension Plans. However, if such shares are purchased through a broker, financial
institution or recordkeeper maintaining an omnibus account for the shares, such
waiver may not apply. (Before purchasing shares, please check with your account
representative concerning the availability of the fee waiver.) In addition, this
fee waiver does not apply to IRA and SEP-IRA accounts. This fee is intended to
encourage long-term investment in each Fund, to avoid transaction and other
expenses caused by early redemptions, and to facilitate portfolio management.
The fee is not a deferred sales charge, is not a commission paid to the Adviser
or its subsidiaries, and does not benefit the Adviser in any way. Both Funds

45
<PAGE>
Transaction information (cont'd)

reserve the right to modify the terms of or terminate their fees at any time.
The fee applies to redemptions from both Funds and exchanges to other Scudder
funds, but not to dividend or capital gains distributions which have been
automatically reinvested in the Fund. The fee is applied to the shares being
redeemed or exchanged in the order in which they were purchased. See "Exchanges
and Redemptions" in Scudder Emerging Markets Growth Fund's or Scudder Latin
America Fund's Statement of Additional Information for a more detailed
description of the redemption fee.

Signature guarantees. For your protection and to prevent fraudulent redemptions,
on written redemption requests in excess of $50,000 we require an original
signature and an original signature guarantee for each person in whose name the
account is registered. (The Funds reserve the right, however, to require a
signature guarantee for all redemptions.) You can obtain a signature guarantee
from most banks, credit unions or savings associations, or from broker/dealers,
municipal securities broker/dealers, government securities broker/dealers,
national securities exchanges, registered securities associations, or clearing
agencies deemed eligible by the Securities and Exchange Commission. Signature
guarantees by notaries public are not acceptable. Redemption requirements for
corporations, other organizations, trusts, fiduciaries, agents, institutional
investors and retirement plans may be different from those for regular accounts.
For more information, please call 1-800-225-5163.

Telephone transactions

Shareholders automatically receive the ability to exchange by telephone and the
right to redeem by telephone up to $50,000 to their address of record.
Shareholders also may, by telephone, request that redemption proceeds be sent to
a predesignated bank account. Each Fund uses procedures designed to give
reasonable assurance that telephone instructions are genuine, including
recording telephone calls, testing a caller's identity and sending written
confirmation of telephone transactions. If a Fund does not follow such
procedures, it may be liable for losses due to unauthorized or fraudulent
telephone instructions. Each Fund will not be liable for acting upon
instructions communicated by telephone that it reasonably believes to be
genuine.

Share price

Purchases and redemptions, including exchanges, are made at net asset value.
There is a 2% fee payable to Scudder Emerging Markets Growth Fund or Scudder
Latin America Fund for exchanges or redemptions of shares held less than one
year. Scudder Fund Accounting Corporation determines net asset value per share
as of the close of regular trading on the Exchange, normally 4 p.m. eastern
time, on each day the Exchange is open for trading. Net asset value per share is
calculated by dividing the value of total Fund assets, less all liabilities, by
the total number of shares outstanding.

Trading in securities on foreign securities exchanges is normally completed
before the close of regular trading on the Exchange. Trading on these foreign
exchanges may not take place on all days on which there is regular trading on
the Exchange, or may take place on days on which there is no regular trading on
the Exchange. If events materially affecting the value of a Fund's portfolio
securities occur between the time when these foreign exchanges close and the
time when the Fund's net asset value is calculated, such securities will be
valued at fair value as determined by each Corporation's Board of Directors.

Processing time

All purchase and redemption requests must be received in good order by the
Funds' transfer agent. Those requests received by the close of regular trading

46
<PAGE>

on the Exchange are executed at the net asset value per share calculated at the
close of regular trading that day.

Purchase and redemption requests received after the close of regular trading on
the Exchange will be executed the following business day.

If you wish to make a purchase of $500,000 or more, you should notify Scudder
Investor Relations by calling 1-800-225-5163.

Each Fund will normally send your redemption proceeds within one business day
following the redemption request, but may take up to seven business days (or
longer in the case of shares recently purchased by check).

Short-term trading

Purchases and sales should be made for long-term investment purposes only. The
Funds and Scudder Investor Services, Inc. each reserve the right to restrict
purchases of Fund shares (including exchanges) when a pattern of frequent
purchases and sales made in response to short-term fluctuations in a Fund's
share price appears evident.

Tax information

A redemption of shares, including an exchange into another Scudder fund, is a
sale of shares and may result in a gain or loss for income tax purposes.

Tax identification number

Be sure to complete the Tax Identification Number section of the application
when you open an account. Federal tax law requires a Fund to withhold 31% of
taxable dividends, capital gains distributions and redemption and exchange
proceeds from accounts (other than those of certain exempt payees) without a
certified Social Security or tax identification number and certain other
certified information or upon notification from the IRS or a broker that
withholding is required. Each Fund reserves the right to reject new account
applications without a certified Social Security or tax identification number.
Each Fund also reserves the right, following 30 days' notice, to redeem all
shares in accounts without a certified Social Security or tax identification
number. A shareholder may avoid involuntary redemption by providing a Fund with
a tax identification number during the 30-day notice period. Redemptions for
failure to provide a tax identification number are not subject to the 2%
redemption fee on Scudder Emerging Markets Growth Fund or Scudder Latin America
Fund.

Minimum balances

Shareholders should maintain a share balance worth at least $1,000, which amount
may be changed by a Fund's Board of Directors. Scudder retirement plans have
similar or lower minimum share balance requirements. Each Fund reserves the
right, following 60 days' written notice to shareholders, to redeem all shares
in sub- minimum accounts, including accounts of new investors, where a reduction
in value has occurred due to a redemption or exchange out of the account.
Reductions in value that result solely from market activity will not trigger an
involuntary redemption. Each Fund will mail the proceeds of the redeemed account
to the shareholder. The shareholder may restore the share balance to $1,000 or
more during the 60-day notice period and must maintain it at no lower than that
minimum to avoid involuntary redemption.

Third party transactions

If purchases and redemptions of Fund shares are arranged and settlement is made
at an investor's election through a member of the National Association of
Securities Dealers, Inc., other than Scudder Investor Services, Inc., that
member may, at its discretion, charge a fee for that service.

Redemption-in-kind

Each Fund reserves the right, if conditions exist which make cash payments
undesirable, to honor any request for redemption or repurchase order by making
payment in whole or in part in readily marketable securities chosen by a Fund
and valued as they are for purposes of computing each Fund's net asset value (a
redemption-in-kind). If payment is made in securities, a shareholder may incur

47
<PAGE>

Transaction information (cont'd)

transaction expenses in converting these securities to cash. Each Corporation
has elected, however, to be governed by Rule 18f-1 under the 1940 Act, as a
result of which a Fund is obligated to redeem shares, with respect to any one
shareholder during any 90-day period, solely in cash up to the lesser of
$250,000 or 1% of the net asset value of each Fund at the beginning of the
period.

Shareholder benefits

Experienced professional management

Scudder, Stevens & Clark, Inc., one of the nation's most experienced investment
management firms, actively manages your Scudder fund investment. Professional
management is an important advantage for investors who do not have the time or
expertise to invest directly in individual securities.

A team approach to investing

Each Fund is managed by a team of Scudder investment professionals who each play
an important role in a Fund's management process. Team members work together to
develop investment strategies and select securities for each Fund's portfolio.
They are supported by Scudder's large staff of economists, research analysts,
traders and other investment specialists who work in Scudder's offices across
the United States and abroad. Scudder believes its team approach benefits Fund
investors by bringing together many disciplines and leveraging Scudder's
extensive resources.

Scudder Emerging Markets Growth Fund. Joyce E. Cornell, Lead Portfolio Manager,
has responsibility for the Fund's day-to-day management and investment
strategies. Ms. Cornell has been a portfolio manager at Scudder since 1993, and
joined the firm in 1991 after eight years of investment experience as a research
analyst. Elizabeth Allan, Portfolio Manager, helps set the Fund's general
investment strategies. Ms. Allan joined Scudder in 1987, and has numerous years
of Pacific Basin research and investing experience. Tara C. Kenney, Portfolio
Manager, assists with the Fund's research and investment strategy by focusing on
the Latin American securities in the portfolio. Ms. Kenney joined Scudder in
1995 and has nine years of financial industry experience.

Scudder Global Fund. Lead Portfolio Manager William E. Holzer has had day-to-day
responsibility for Scudder Global Fund's worldwide strategy and investment
themes since its inception in 1986. Mr. Holzer, who has over 20 years'
experience in global investing, joined Scudder in 1980. Nicholas Bratt,
Portfolio Manager, directs Scudder's overall global equity investment
strategies. Mr. Bratt joined Scudder in 1976 and the team in 1993. Alice Ho,
Portfolio Manager, joined the team in 1994 and is also responsible for
implementing the Fund's strategy. Ms. Ho, who joined Scudder in 1986 as a member
of the institutional and private investment counsel areas, has worked as a
portfolio manager since 1989.

Scudder Global Discovery Fund. Lead Portfolio Manager Gerald J. Moran has set
the Scudder Global Discovery Fund's investment strategy and overseen its daily
operation since the Fund was introduced in 1991. Mr. Moran joined Scudder's
equity research and management area in 1968 as an analyst and has focused on
small company stocks since 1982 and has been a portfolio manager since 1985.
Elizabeth J. Allan, Portfolio Manager, who joined the team in 1994, concentrates
on the Fund's Pacific Basin investments. Ms. Allan, who has been a portfolio
manager at Scudder since 1991, joined the firm in 1987 as a member of the
portfolio management team of a Scudder closed-end mutual fund concentrating its
investments in Asia. Joan R. Gregory, Portfolio Manager, joined the team in 1994

48
<PAGE>

and focuses on stock selection, a role she has played since she joined Scudder
in 1992. Ms. Gregory has been involved with investment in global and
international stocks as an assistant portfolio manager since 1989. Sewall
Hodges, Portfolio Manager, joined Scudder in 1995 and the team in 1996. Mr.
Hodges, who has ten years in global analysis and portfolio management, focuses
on the Fund's stock selection and research.

Scudder Greater Europe Growth Fund. Carol L. Franklin, Lead Portfolio Manager,
sets Fund investment strategy and oversees its daily operation. Ms. Franklin
joined Scudder in 1981 and has nine years of European research and investment
management experience. Nicholas Bratt, Portfolio Manager, helps set the Fund's
general investment strategies. Mr. Bratt has over 20 years of experience in
worldwide investing and has been with Scudder since 1976. Joan R. Gregory,
Portfolio Manager, focuses on stock selection, a role she has played since she
joined Scudder in 1992. Ms. Gregory has been involved with investment in global
and international stocks as an assistant portfolio manager since 1989.

Scudder International Fund. Lead Portfolio Manager Carol L. Franklin joined
Scudder International Fund's portfolio management team in 1986 and has been
responsible for setting the Fund's investment strategy and overseeing security
selection for the Fund's portfolio since 1992. Ms. Franklin, who has 18 years of
experience in finance and investing, joined Scudder in 1981. Nicholas Bratt,
Portfolio Manager, directs Scudder's overall global equity investment
strategies. Mr. Bratt joined Scudder and the team in 1976. Irene T. Cheng,
Portfolio Manager, joined Scudder and the team in 1993. Ms. Cheng has 11 years
of experience in finance and investing. Francisco S. Rodrigo III, Portfolio
Manager, joined Scudder and the team in 1994. Mr. Rodrigo has been involved with
investment in global and international stocks and bonds as a portfolio manager
and analyst since 1989. Joan R. Gregory, Portfolio Manager, focuses on stock
selection, a role she has played since she joined Scudder in 1992. Ms. Gregory,
who joined the team in 1994, has been involved with investment in global and
international stocks as an assistant portfolio manager since 1989.

Scudder Latin America Fund. Lead Portfolio Manager Edmund B. Games, Jr. has set
the Fund's investment strategy and overseen its daily operation since the Fund
was introduced in 1992. Mr. Games joined Scudder's equity research area in 1960
and has focused on Latin American stocks since 1988. 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.

Scudder Pacific Opportunities Fund. Lead Portfolio Manager Elizabeth J. Allan
assumed responsibility for the Fund's day-to-day management and investment
strategies in February 1994. Ms. Allan joined Scudder in 1987 as a member of the
portfolio management team of a Scudder closed-end mutual fund concentrating its
investments in Asia. Nicholas Bratt, Portfolio Manager, has been a member of the
Fund's team since 1992 and has over 20 years of experience in global investing.
Joyce E. Cornell, Portfolio Manager since 1993, has focused on stock selection,
a role she has played since the Fund's introduction in 1992. Ms. Cornell, who
has eight years of investment experience as a research analyst, joined Scudder
in 1991 in this capacity.

SAIL(TM)--Scudder Automated Information Line

For personalized account information including fund prices, yields and account
balances, to perform transactions in existing Scudder fund accounts, or to
obtain information on any Scudder fund, shareholders can call Scudder's

49
<PAGE>

Shareholder benefits (cont'd)

Automated Information Line (SAIL) at 1-800-343-2890, 24 hours a day. During
periods of extreme economic or market changes, or other conditions, it may be
difficult for you to effect telephone transactions in your account. In such an
event you should write to the Fund; please see "How to contact Scudder" for the
address.

Investment flexibility

Scudder offers toll-free telephone exchange between funds at current net asset
value. You can move your investments among money market, income, growth,
tax-free and growth and income funds with a simple toll-free call or, if you
prefer, by sending your instructions through the mail or by fax. Telephone and
fax redemptions and exchanges are subject to termination and their terms are
subject to change at any time by the Fund or the transfer agent. In some cases,
the transfer agent or Scudder Investor Services, Inc. may impose additional
conditions on telephone transactions.

Dividend reinvestment plan

You may have dividends and distributions automatically reinvested in additional
Fund shares. Please call 1-800-225-5163 to request this feature.

Shareholder statements

You receive a detailed account statement every time you purchase or redeem
shares. All of your statements should be retained to help you keep track of
account activity and the cost of shares for tax purposes.

Shareholder reports

In addition to account statements, you receive periodic shareholder reports
highlighting relevant information, including investment results and a review of
portfolio changes.

To reduce the volume of mail you receive, only one copy of most Fund reports,
such as the Fund's Annual Report, may be mailed to your household (same surname,
same address). Please call 1-800-225-5163 if you wish to receive additional
shareholder reports.

Newsletters

Four times a year, Scudder sends you Perspectives, an informative newsletter
covering economic and investment developments, service enhancements and other
topics of interest to Scudder fund investors.

Scudder Funds Centers

As a convenience to shareholders who like to conduct business in person, Scudder
Investor Services, Inc. maintains Funds Centers in Boca Raton, Boston, Chicago,
Cincinnati, Los Angeles, New York, Portland (OR), San Diego, San Francisco and
Scottsdale.

T.D.D. service for the hearing impaired

Scudder's full range of investor information and shareholder services is
available to hearing impaired investors through a toll-free T.D.D. (Telephone
Device for the Deaf) service. If you have access to a T.D.D., call
1-800-543-7916 for investment information or specific account questions and
transactions.

50
<PAGE>

Scudder tax-advantaged retirement plans

Scudder offers a variety of tax-advantaged retirement plans for individuals,
businesses and non-profit organizations. These flexible plans are designed for
use with the Scudder Family of Funds (except Scudder tax-free funds, which are
inappropriate for such plans). Scudder Funds offer a broad range of investment
objectives and can be used to seek almost any investment goal. Using Scudder's
retirement plans can help shareholders save on current taxes while building
their retirement savings.

* Scudder No-Fee IRAs. These retirement plans allow a maximum annual
contribution of $2,000 per person for anyone with earned income. Many
people can deduct all or part of their contributions from their taxable
income, and all investment earnings accrue on a tax deferred basis. The
Scudder No-Fee IRA charges no annual custodial fee.

* 401(k) Plans. 401(k) plans allow employers and employees to make
tax-deductible retirement contributions. Scudder offers a full service
program that includes recordkeeping, prototype plan, employee
communications and trustee services, as well as investment options.

* Profit Sharing and Money Purchase Pension Plans. These plans allow
corporations, partnerships and people who are self-employed to make annual,
tax-deductible contributions of up to $30,000 for each person covered by
the plans. Plans may be adopted individually or paired to maximize
contributions. These are sometimes known as Keogh plans.

* 403(b) Plans. Retirement plans for tax-exempt organizations and school
systems to which employers and employees may both contribute.

* SEP-IRAs. Easily administered retirement plans for small businesses and
self-employed individuals. The maximum annual contribution to SEP-IRA
accounts is adjusted each year for inflation.

* Scudder Horizon Plan. A no-load variable annuity that lets you build assets
by deferring taxes on your investment earnings. You can start with $2,500
or more.

Scudder Trust Company (an affiliate of the Adviser) is Trustee or Custodian for
some of these plans and is paid an annual fee for some of the above retirement
plans. For information about establishing a Scudder No-Fee IRA, SEP-IRA, Profit
Sharing Plan, Money Purchase Pension Plan or a Scudder Horizon Plan, please call
1-800-225-2470. For information about 401(k)s or 403(b)s, please call
1-800-323-6105. To effect transactions in existing IRA, SEP-IRA, Profit Sharing
or Pension Plan accounts, call 1-800-225-5163.

The variable annuity contract is provided by Charter National Life Insurance
Company (in New York State, Intramerica Life Insurance Company [S 1802]). The
contract is offered by Scudder Insurance Agency, Inc. (in New York State, Nevada
and Montana, Scudder Insurance Agency of New York, Inc.). CNL, Inc. is the
Principal Underwriter. Scudder Horizon Plan is not available in all states.

51
<PAGE>

Investment products and services
<TABLE>
<CAPTION>
<C> <C>
The Scudder Family of Funds Income
Money market Scudder Emerging Markets Income Fund
Scudder Cash Investment Trust Scudder Global Bond 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 Zero Coupon 2000 Fund
Tax free+ Growth
Scudder California Tax Free Fund* Scudder Capital Growth Fund
Scudder High Yield Tax Free Fund Scudder Development Fund
Scudder Limited Term Tax Free Fund Scudder Emerging Markets Growth Fund
Scudder Managed Municipal Bonds Scudder Global Discovery Fund
Scudder Massachusetts Limited Term Tax Free Fund* Scudder Global 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
401(k) Plans Money Purchase Pension Plans
------------------------------------------------------------------------------------------------------------------------
Closed-end Funds#
The Argentina Fund, Inc. Scudder New Europe Fund, Inc.
The Brazil Fund, Inc. Scudder World Income Opportunities Fund, Inc.
The First Iberian Fund, Inc.
The Korea Fund, Inc. Institutional Cash Management
The Latin America Dollar Income Fund, Inc. Scudder Institutional Fund, Inc.
Montgomery Street Income Securities, Inc. Scudder Fund, Inc.
Scudder New Asia Fund, Inc. Scudder Treasurers Trust(TM)++

------------------------------------------------------------------------------------------------------------------------
</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.

52
<PAGE>

How to contact Scudder
<TABLE>
<CAPTION>
<C> <C> <C>
Account Service and Information: Please address all correspondence to:

For existing account service Scudder Investor Relations The Scudder Funds
and transactions 1-800-225-5163 P.O. Box 2291
Boston, Massachusetts
02107-2291

For personalized information Scudder Automated
about your Scudder accounts; Information Line (SAIL)
exchanges and redemptions; 1-800-343-2890
or information on any
Scudder fund

Investment Information: Or Stop by a Scudder Funds Center:

To receive information about Scudder Investor Relations Many shareholders enjoy the personal, one-on-one
the Scudder funds, for 1-800-225-2470 service of the Scudder Funds Centers. Check for a
additional applications and Funds Center near you--they can be found in the
prospectuses, or for following cities:
investment questions

For establishing 401(k) and Scudder Defined Boca Raton New York
403(b) plans Contribution Services Boston Portland, OR
1-800-323-6105 Chicago San Diego
Cincinnati San Francisco
Los Angeles Scottsdale

For information on Scudder Treasurers Trust(TM), an For information on Scudder Institutional Funds*,
institutional cash management service for funds designed to meet the broad investment
corporations, non-profit organizations and trusts management and service needs of banks and other
which utilizes certain portfolios of Scudder Fund, institutions, call: 1-800-854-8525.
Inc.* ($100,000 minimum), call: 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.