Scudder
Latin America
Fund
Annual Report
October 31, 1996
Pure No-Load(TM) Funds
For investors seeking long-term growth of capital from a portfolio investing
primarily in the securities of Latin American issuers.
A pure no-load(TM) fund with no commissions to buy, sell, or exchange shares.
SCUDDER (logo)
<PAGE>
Table of Contents
2 In Brief
3 Letter from the Fund's Chairman
4 Performance Update
5 Portfolio Summary
6 Portfolio Management Discussion
10 Investment Portfolio
13 Financial Statements
16 Financial Highlights
17 Notes to Financial Statements
21 Report of Independent Accountants
22 Tax Information
25 Officers and Directors
26 Investment Products and Services
27 How to Contact Scudder
In Brief
o Scudder Latin America Fund provided a strong 28.31% total return for the
period, compared with a 19.26% return for in the unmanaged International Finance
Corporation's Latin America Investable Total Return Index.
o Economic recovery and falling inflation rates throughout the region provided a
favorable investment environment for Scudder Latin America Fund.
o The Fund's relatively heavy weightings in Argentina and Brazil, two of the
best performing stock markets in Latin America, contributed significantly to the
Fund's superior performance.
2 - Scudder Latin America Fund
<PAGE>
Letter From the Fund's Chairman
Dear Shareholders,
We hope you enjoy our newly redesigned shareholder report. The new format
is designed to enhance the attractiveness and readability of the reports. Let us
know what you think.
In this era of electronic information we have also taken a look at our
abbreviated quarterly reports, which you generally receive during the month
after the end of your fund's first and third fiscal quarters. Going forward,
these printed reports will be discontinued, and portfolio information will be
made available on a more timely basis -- each month, in most cases -- through
Scudder's Web site, Scudder's automated information line (SAIL), and by calling
Investor Relations.
As detailed in the portfolio management discussion that follows, Scudder
Latin America Fund provided a solid return of 28.31% for the 12-month period
ended October 31, 1996, against a favorable backdrop of economic recovery and
falling inflation rates throughout the region. With economic growth in Latin
America expected to rise and the inflation rate projected to fall, we continue
to believe in Latin America's long-term investment potential.
Finally, we'd like to take this opportunity to highlight some additions
made this fall to the Scudder Family of Funds. Scudder Classic Growth Fund seeks
long-term capital appreciation with a higher degree of principal stability than
the average growth fund. Scudder 21st Century Growth Fund takes a more
aggressive approach, focusing primarily on emerging companies with the potential
to benefit from the rapidly changing industrial and economic landscape. Most
recently, we introduced the Scudder Pathway Series, a collection of four
portfolios -- Conservative, Growth, Balanced, and International -- each of which
includes five or more Scudder Funds and which together are designed to meet a
range of investor needs. For more information on these and other Scudder Fund
products and services, please turn to page 26.
Thank you for your continued investment in Scudder Latin America Fund.
Please do not hesitate to call Investor Relations at 1-800-225-2470 with any
questions regarding your account.
Sincerely,
/s/Daniel Pierce
Daniel Pierce
Chairman,
Scudder Latin America Fund
3 - Scudder Latin America Fund
<PAGE>
PERFORMANCE UPDATE as of October 31, 1996
- ----------------------------------------------------------------
FUND INDEX COMPARISONS
- ----------------------------------------------------------------
Total Return
Period Growth --------------
Ended of Average
10/31/96 $10,000 Cumulative Annual
- --------------------------------------
SCUDDER LATIN AMERICA FUND
- --------------------------------------
1 Year $12,831 28.31% 28.31%
Life of
Fund* $18,133 81.33% 16.49%
- --------------------------------------
IFC LATIN AMERICA INVESTABLE
TOTAL RETURN INDEX
- --------------------------------------
1 Year $11,926 19.26% 19.26%
Life of
Fund* $14,104 41.04% 9.39%
- --------------------------------------
*The Fund commenced operations on December 8, 1992.
Index comparisons begin December 31, 1992.
- -----------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- -----------------------------------------------------------------
A chart in the form of a line graph appears here,
illustrating the Growth of a $10,000 Investment.
The data points from the graph are as follows:
SCUDDER LATIN AMERICA FUND
Year Amount
- ----------------------
12/92* $10,000
4/93 $10,560
10/93 $14,728
4/94 $16,604
10/94 $19,651
4/95 $13,558
10/95 $13,567
4/96 $16,623
10/96 $17,407
IFC LATIN AMERICA INVESTABLE
TOTAL RETURN INDEX
Year Amount
- ----------------------
12/92* $10,000
4/93 $10,350
10/93 $13,434
4/94 $15,495
10/94 $18,903
4/95 $12,114
10/95 $11,826
4/96 $13,816
10/96 $14,104
The IFC Latin America Investable Total Return Index is prepared by
International Finance Corporation. It is an unmanaged, market
capitalization-weighted representation of stock performance in seven
Latin American markets, and measures the returns of stocks that are legally
and practically available to investors. Unlike Fund returns, Index returns
do not reflect any fees or expenses.
- -----------------------------------------------------------------
RETURNS AND PER SHARE INFORMATION
- -----------------------------------------------------------------
A chart in the form of a bar graph appears here,
illustrating the Fund Total Return (%) and Index Total
Return (%) with the exact data points listed in the table
below.
YEARLY PERIODS ENDED OCTOBER 31
1993* 1994 1995 1996
----------------------------------------------------------
NET ASSET VALUE... $18.41 $24.44 $16.22 $20.63
INCOME DIVIDENDS.. $ -- $ .06 $ -- $ .15
CAPITAL GAINS
DISTRIBUTIONS..... $ -- $ .06 $ .73 $ --
FUND TOTAL
RETURN (%)........ 53.42** 33.43 -30.96 28.31
INDEX TOTAL
RETURN (%)........ 28.72 48.17 -37.44 19.26
All performance is historical, assumes reinvestment of all dividends and
capital gains, and is not indicative of future results.
Investment return and principal value will fluctuate, so an investor's
shares, when redeemed, may be worth more or less than when purchased.
If the Adviser had not maintained the Fund's expenses, the total returns
for the life of Fund period would have been lower.
**Total return does not reflect the effect of the applicable redemption fees.
4 - Scudder Latin America Fund
<PAGE>
PORTFOLIO SUMMARY as of October 31, 1996
- ---------------------------------------------------------------------------
GEOGRAPHICAL
(Excludes 5% Cash Equivalents)
- ---------------------------------------------------------------------------
Brazil 48%
Mexico 25%
Argentina 21%
Peru 2%
Chile 2%
Colombia 2%
- --------------------------------------
100%
- --------------------------------------
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
The Fund's strong weightings in Argentina, Mexico,
and Brazil contributed greatly to performance.
- --------------------------------------------------------------------------
SECTORS
(Excludes 5% Cash Equivalents)
- --------------------------------------------------------------------------
Consumer Staples 24%
Energy 17%
Communications 16%
Utilities 11%
Manufacturing 10%
Financial 10%
Consumer Discretionary 5%
Other 7%
- ---------------------------------------------
100%
- ---------------------------------------------
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
The burgeoning middle class in many Latin American
countries has translated into strong prospects for
many companies in the consumer staples sector.
Currently, this sector represents the largest
Fund weighting.
- --------------------------------------------------------------------------
10 LARGEST EQUITY HOLDINGS
(44% OF PORTFOLIO)
- --------------------------------------------------------------------------
1. PETROLEO BRASILEIRO S.A.
Petroleum company
2. PEREZ COMPANC S.A.
Industrial conglomerate in Argentina
3. COMPANHIA ENERGETICA DE MINSA GERAIS
Electric power utility in Brazil
4. COMPANHIA CERVEJARIA BRAHMA S/A
Leading beer producer and distributor in Brazil
5. TELEFONOS DE MEXICO S.A. DE C.V.
Telecommunication services
6. BANK ITAU S.A.
Bank in Brazil
7. YPF S.A.
Petroleum company in Argentina
8. TELECOMUNICACOES DE SAO PAULO S.A.
Telecommunication services in Brazil
9. CENTRAIS ELETRICAS BRASILEIRAS S/A
Electric utility
10.KIMBERLY CLARK DE MEXICO S.A. DE C.V.
Consumer paper producers and newsprint
Nine companies remain in the top 10 holdings
since our last report, a reflection of our
commitment to quality companies with strong
long-term profit potential.
- -----------------------------------------------------------------------------
For more complete details about the Fund's investment portfolio,
see page 10. A monthly Investment Portfolio Summary and quarterly Portfolio
Holdings are available upon request.
5 - Scudder Latin America Fund
<PAGE>
Portfolio Management Discussion
Dear Shareholders,
Scudder Latin America Fund enjoyed a solid recovery from the depressed
valuations prevailing at the end of last year. At the end of its October 31,
1996 fiscal year, the Fund's net asset value had increased to $20.63 per share,
a 28.31% total investment return for the period. This compares favorably with
the 19.26% increase in the unmanaged International Finance Corporation's Latin
America Investable Total Return Index.
Favorable Economic Backdrop
Economic recovery and falling inflation rates throughout the region provided a
favorable backdrop for Scudder Latin America Fund during the period. The
InterAmerica Development Bank estimates a 3% rate of economic growth this year
for Latin America versus 1995's modest 0.7% rate of expansion. The median
inflation rate is projected to fall from 13% to 11%.
The portfolio management team's estimates of economic growth for each of the
major Latin American countries are consistent with the InterAmerica Development
Bank's projections. According to these estimates, Venezuela should be the only
important country to suffer a decline in real economic activity. That country's
laggard performance in the face of growth elsewhere was probably influential in
persuading the Caldera government to abandon its populist policies in favor of a
more orthodox stabilization program.
======================================================
Economic Growth Forecasts (GDP)
------------------------------------------------------
Country 1995 1996* 1997*
------------------------------------------------------
Argentina (4.4%) 2-3% 3-4%
Brazil 4.2 3-4 4-5
Chile 8.2 6-7 6-7
Colombia 5.3 2-3 3-4
Mexico (7.2) 3-4 4-5
Peru 6.7 3-4 4-5
Venezuela 2.2 (2-3) 2-3
======================================================
* Estimated. Estimates may prove inaccurate and, even if accurate, may not
correlate with market activity. Source: Scudder Latin America Group.
Most Markets Rally
Latin American stock markets no longer move in lockstep to the beat of such
regional themes as privatization, free trade, and capital markets reform. Since
the 1994 Mexican peso devaluation, investors have focused on such
country-specific factors as exchange rates and current account deficits, which
can have a material impact on the performance of an individual market but not
necessarily on Latin American markets as a group. The variability of investment
returns across the region is shown in the table on the following page.
6 - Scudder Latin America Fund
<PAGE>
THE PRINTED DOCUMENT CONTAINS A BAR CHART HERE
BAR CHART TITLE:
Investment Returns in Latin American
Stock Markets
CHART PERIOD:
for the 12 months ended October 31, 1996
CHART DATA:
Argentina +34.5%
Brazil +26.8%
Chile -1.9%
Colombia +14.2%
Mexico +22.1%
Peru +14.5%
Venezuela +29.8%
IFC Latin America +19.3%
Investable Index
Source: IFC Emerging Markets Database. Past performance is no indication
of future results.
The two best performing stock markets during the Fund's fiscal year were
Argentina and Venezuela. In both cases, investment returns represented a
recovery from previously oversold markets. This is particularly true in the case
of Venezuela, which has now reactivated its privatization program, abandoned
currency and exchange rate controls, and turned towards free markets. Windfall
revenues from petroleum sales have facilitated the government's reform program.
Argentina continues to confound investors with its determination to stay the
course with the peso-dollar convertibility program. The peso has been maintained
at a parity with the dollar despite the shocks of Finance Minister Cavallo's
departure from government and a high unemployment rate. Peru's market has been
pressured by an easing of the mining boom and the Fujimora government's
engineering of an economic slowdown in order to deal with a rapid increase in
the current account deficit.
Chile was the only significant country in Latin America whose stock market
actually declined during the Fund's fiscal year. It may seem paradoxical that
the best managed economy should be the only one to miss the year's rally.
Investment valuations in Chile have been comparatively rich for some time,
however, and stocks could not compete against the distressed valuations
prevailing elsewhere in the region.
Both the Brazilian and Mexican stock markets outperformed the IFC Latin America
Index. In these instances, returns were mainly attributable to the performance
of a small number of important industry groups, such as the electric utility and
telecommunications stocks in Brazil and export companies and consumer
consumption plays in Mexico.
The following table shows the Fund's country allocations at the end of its
fiscal year. For comparison purposes, we also show the country weightings for
the unmanaged IFC Latin America Investable Index.
7 - Scudder Latin America Fund
<PAGE>
Fund IFC Index
Country Weighting* Weighting
------- ---------- ---------
Argentina 21% 11%
Brazil 48% 36%
Chile 2% 18%
Colombia 2% 3%
Mexico 25% 27%
Peru 2% 3%
Venezuela 0% 2%
* Excludes Fund's assets in cash equivalents.
The portfolio's overweight position in Argentina and underweight exposure to
Chilean securities contributed to outperformance versus the IFC benchmark index.
Country allocations are declining in importance with respect to explaining
investment performance, due to the diversification of many leading companies
across geographical boundaries. The development of regional trading arrangements
such as Mercosur and NAFTA has hastened the diversification process.
8 - Scudder Latin America Fund
<PAGE>
An Eye Towards the Future
The portfolio is constructed and managed with an eye towards company-specific
valuation considerations, although industry themes have played a prominent role
in portfolio allocations. The Fund's important investments in the
telecommunications and beverage industries are a case in point.
A common characteristic of most of the companies in the portfolio is a low level
of debt. This is important because cash flow is not encumbered with an
obligation to take care of the lender and can be spent on new plant and
equipment to benefit the owners of the business. The successful attack on high
rates of inflation throughout Latin America is beginning to tip the balance in
favor of savings and investment, and we believe companies with comparatively low
balance sheet leverage will be the major beneficiaries.
Sincerely,
Your Portfolio Management Team
/s/Edmund B. Games, Jr. /s/Tara C. Kenney
Edmund B. Games, Jr. Tara C. Kenney
/s/Paul H. Rogers
Paul H. Rogers
Scudder Latin America Fund:
A Team Approach to Investing
Scudder Latin America Fund is managed by a team of Scudder investment
professionals who each play an important role in the Fund's management
process. Team members work together to develop investment strategies and
select securities for the Fund. 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. We believe our
team approach benefits Fund investors by bringing together many disciplines
and leveraging Scudder's extensive resources.
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. Ed 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. Tara, 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. Paul joined Scudder
in 1994 and has over 10 years of investment experience.
9 - Scudder Latin America Fund
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO AS OF OCTOBER 31, 1996
<CAPTION>
PRINCIPAL MARKET
AMOUNT(U.S.$) VALUE($)
- ------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 4.9%
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
Repurchase Agreement with Donaldson, Lufkin & Jenrette dated
10/31/96 at 5.52%, to be repurchased at $30,583,689 on 11/1/96,
collateralized by a $26,434,000 U.S. Treasury Note, 8.75%,
11/15/08 (Cost $30,579,000) .......................................... 30,579,000 30,579,000
SHARES
- ------------------------------------------------------------------------------------------------------
EQUITY SECURITIES 95.1%
- ------------------------------------------------------------------------------------------------------
ARGENTINA 19.9%
Astra CAPSA (Petroleum company) ........................................ 6,783,630 12,212,367
BI S.A. "A" (Venture capital company)(b) ............................... 3,000,000 3,267,900
Bagley y Cia Ltd. S.A. "B" (Producer of cookies and biscuits) .......... 2,888,651 6,789,348
Buenos Aires Embotelladora S.A. "B" (ADR) (Soft drink bottler
and distributor) ..................................................... 112,000 630,000
Central Costanera "B" (Electric utility) ............................... 684,545 2,149,794
Nobleza Piccardo (Tobacco company) ..................................... 1,547,276 5,416,278
Perez Companc S.A. "B" (Industrial conglomerate) ....................... 4,602,440 29,229,878
Quilmes Industrial S.A. (Leading beer distributor) ..................... 827,000 8,425,063
Quilmes Industrial S.A. (ADR) .......................................... 518,500 5,444,250
Telecom Argentina S.A. "B" (Telecommunication services) ................ 1,701,099 6,422,612
Telecom Argentina S.A. (ADR) ........................................... 115,000 4,341,250
Telefonica de Argentina (ADR) (Telecommunication services) ............. 205,000 4,766,250
Telefonica de Argentina S.A. "B" ....................................... 2,742,068 6,389,977
Transportadora de Gas del Sur "B" (Natural gas utility) ................ 40,000 465,000
YPF S.A. "D" (ADR) (Petroleum company) ................................. 1,200,000 27,300,000
-----------
123,249,967
-----------
BRAZIL 46.7%
Aracruz Celulose S.A. (ADR) (Producer of eucalyptus kraft pulp) ........ 560,800 4,486,400
Banco Bradesco S.A. (pfd.) (Commercial bank) ........................... 2,291,277,111 19,536,293
Banco Itau S.A. (pfd.) (Bank) .......................................... 63,079,600 27,321,805
COPENE Petroquimica do Nordeste S.A. "A" (pfd.) (Leading
producer of petrochemicals) .......................................... 3,600,000 1,378,820
Centrais Eletricas Brasileiras S/A "B" (pfd.) (Electric utility) ....... 72,000,000 23,336,578
Companhia Cervejaria Brahma (pfd.) (Leading beer producer
and distributor) ..................................................... 45,526,569 28,138,380
Companhia Energetica de Minas Gerais (pfd.) (Electric power utility) ... 900,875,000 28,672,973
Companhia Paranaense de Energia (voting) (Electric utility) ............ 455,200,400 4,696,442
Companhia Paulista de Forca e Luz* (Electric power utility) ............ 46,310,000 4,260,033
Companhia Petroquimica do Sul S.A. (voting) (Chemical producer) ........ 53,808,000 2,854,327
Companhia Souza Cruz Industria e Comercio (voting)
(Holding company: cigarettes and tobacco, fiber cellulose) ........... 321,500 1,933,882
</TABLE>
The accompanying notes are an integral part of the financial statements.
10 - Scudder Latin America Fund
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE($)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
Companhia Suzano de Papel e Celulose S.A. (pfd.) (Paper products) .... 1,774,840 4,577,892
Companhia Vale do Rio Doce (pfd.) (Diverse mining and
industrial complex) ................................................ 961,800 19,752,755
Empresa Brasileira de Compressores S.A. (pfd.)
(Manufacturer of electrical equipment)(b) .......................... 3,002,000 1,636,286
Industrias Klabin de Papel e Celulose S/A (pfd.) (Producer of
papers and paper products, newsprint, and cardboard boxes) ......... 4,581,000 4,548,005
Investimentos Itau S/A (Diversified holding company, involved
in finance, chemicals, electronics, wood products) ................. 4,359,000 3,436,626
Lojas Americanas S.A. (pfd.) (Discount department store chain) ....... 90,667,360 1,425,227
Lojas Americanas S.A. (voting) (Discount department store chain) ..... 232,308,380 3,277,506
Petroleo Brasileiro S.A .(pfd.) (Petroleum company) .................. 237,000,000 30,680,358
S/A White Martins (voting) (Chemical company) ........................ 9,463,146,120 14,645,126
Sadia Concordia S/A (pfd.) (Processed poultry, pork and beef) ........ 9,164,000 6,154,526
Telecomunicaoees Brasileiras S.A. (ADR)
(Telecommunication services) ....................................... 115,000 8,567,500
Telecomunicaoees de Sao Paulo S.A. (pfd.) (Telecommunication
services) .......................................................... 140,410,000 25,693,089
Telecomunicaoees do Parana S/A (pfd.) (Telecommunication services) ... 9,274,986 4,233,958
Usinas Siderurgicas de Minas Gerais S/A (pfd.) (Non-coated flat
products and electrolytic galvanized products) ..................... 13,300,000,000 13,980,923
------------
289,225,710
------------
CHILE 1.5%
Compania de Telefonos de Chile, S.A. (ADR)
(Telecommunication services) ....................................... 50,000 4,931,250
Enersis S.A. (ADR) (Generator and distributor of electricity
in Chile and Argentina) ............................................ 100,000 2,937,500
Maderas y Sinteticos S.A. (ADR) (Manufacturer of particle
board and veneers) ................................................. 100,500 1,432,125
------------
9,300,875
------------
COLOMBIA 1.5%
Bavaria S/A (Producer and distributor of beer and other malt
beverages, mineral water and soft drinks) .......................... 876,761 3,584,359
Colombiana de Tabaco S.A. (Tobacco producer) ......................... 821,871 2,473,337
Compania Nacional de Chocolates* (Chocolate producer) ................ 294,397 2,472,440
Industrias Alimenticias Noel (Soap and home cleaning products) ....... 180,000 512,897
------------
9,043,033
------------
MEXICO 23.4%
Apasco, S.A. de C.V (Cement producer) ................................ 1,100,000 6,712,329
Fomento Economico Mexicano, S.A. de C.V. "B" (Producer of
beer and soft drinks) .............................................. 2,952,000 8,969,963
Grupo CIFRA S.A. de C.V. "C"* (Retailer) ............................. 10,202,000 13,086,002
Grupo Continental, S.A. "B" (Soft drink bottler) ..................... 2,902,700 10,844,458
Grupo Embotellador de Mexico SA de C.V. "B"* (Soft drink bottler) .... 6,544,500 2,445,019
Grupo Embotellador de Mexico SA de C.V.* (GDR) ....................... 440,950 3,252,006
</TABLE>
The accompanying notes are an integral part of the financial statements.
11 - Scudder Latin America Fund
<PAGE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE($)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
Grupo Embotelladora Unidas SA de CV "B" (Soft drink producer) (b) .......... 2,009,134 3,002,442
Grupo Financiero Inbursa de C.V. "B" (Banking and insurance services) ...... 1,147,000 3,713,823
Grupo Herdez S.A. de C.V. "A" (Producer of packaged foods) ................. 7,052,000 2,142,824
Grupo Industrial Bimbo, S.A. de C.V. "A" (Producer of bread and
other baked goods) ....................................................... 1,309,000 6,487,945
Grupo Modelo SA "C" (Leading brewery) ...................................... 1,450,000 7,520,859
Kimberly Clark de Mexico S.A. de C.V. "A"
(Consumer paper products and newsprint) .................................. 1,200,000 23,163,138
Organizacion Soriana S.A. "A" de CV (Retailer) ............................. 6,812,022 12,130,998
Panamerican Beverages Inc. "A" (ADR) (Soft drink bottler) .................. 320,800 13,994,900
Telefonos de Mexico S.A. de C.V. "L" (ADR)
(Telecommunication services) ............................................. 900,000 27,450,000
-----------
144,916,706
-----------
PERU 1.7%
Cementos Lima S.A. "T" (Cement producer) ................................... 2,006,933 2,766,576
Cerveceria Backus & Johnston S.A. "T" (Brewery) ............................ 3,456,441 3,479,863
Embotelladora Latinoamericana SA* (Bottler) ................................ 2,169,157 1,763,884
Industrias Pacocha S.A. "T" (Food producer) ................................ 3,466,736 2,268,648
-----------
10,278,971
-----------
VENEZUELA 0.4%
Mavesa SA (ADR) (Food processor) ........................................... 363,750 2,318,906
- ------------------------------------------------------------------------------------------------------
TOTAL EQUITY SECURITIES (Cost $509,488,096) 588,334,168
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT PORTFOLIO -- 100.0% (Cost $540,067,096)(a) 618,913,168
- ------------------------------------------------------------------------------------------------------
- ----------
<FN>
* Non-income producing security.
(a) The cost for federal income tax purposes was $548,150,657. At October 31,
1996, net unrealized appreciation for all securities based on tax cost was
$70,762,511. This consisted of aggregate gross unrealized appreciation for
all securities in which there was an excess of market value over tax cost of
$121,250,145 and aggregate gross unrealized depreciation for all securities
in which there was an excess of tax cost over market value of $50,487,634.
(b) Securities valued in good faith by the Valuation Committee of the Board of
Directors. The cost of these securities at October 31, 1996, aggregated
$12,101,728. These securities may also have certain restrictions as to
resale. See Note A of the Notes to Financial Statements.
Sector breakdown of the Fund's equity securities is noted on page 5.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
12 - Scudder Latin America Fund
<PAGE>
FINANCIAL STATEMENTS
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
AS OF OCTOBER 31, 1996
<CAPTION>
ASSETS
- ------------------------------------------------------------------------------------------------------------
<S> <C>
Investments, at market (identified cost $540,067,096) (Note A) ............. $618,913,168
Cash ....................................................................... 100,836
Foreign currency holdings, at market (identified cost $984,712) (Note A) ... 985,062
Receivable for investments sold ............................................ 3,281,587
Receivable for Fund shares sold ............................................ 135,550
Dividends and interest receivable .......................................... 1,282,087
Deferred organization expenses (Note A) .................................... 17,637
Other assets ............................................................... 11,079
------------
Total assets ............................................................... 624,727,006
LIABILITIES
- ------------------------------------------------------------------------------------------------------------
Payable for investments purchased .......................................... $ 308,206
Payable for Fund shares redeemed ........................................... 979,190
Accrued management fee (Note C) ............................................ 663,863
Other accrued expenses (Note C) ............................................ 694,741
Other payables ............................................................. 166,316
------------
Total liabilities .......................................................... 2,812,316
------------------------------------------------------------------------------------------
Net assets, at market value $621,914,690
------------------------------------------------------------------------------------------
NET ASSETS
- ------------------------------------------------------------------------------------------------------------
Net assets consist of:
Undistributed net investment income ........................................ 5,240,925
Unrealized appreciation (depreciation) on:
Investments ............................................................ 78,846,072
Foreign currency related transactions .................................. (23,559)
Accumulated net realized loss .............................................. (73,485,196)
Paid-in capital ............................................................ 611,336,448
------------------------------------------------------------------------------------------
Net assets, at market value $621,914,690
------------------------------------------------------------------------------------------
NET ASSET VALUE
- ------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share ($621,914,690 /
30,148,974 shares of capital stock outstanding, $.01 par value, ------------
100,000,000 shares authorized) ......................................... $20.63
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
13 - Scudder Latin America Fund
<PAGE>
STATEMENT OF OPERATIONS
<TABLE>
YEAR ENDED OCTOBER 31, 1996
<CAPTION>
INVESTMENT INCOME
- ------------------------------------------------------------------------------------------------------------
<S> <C>
Dividends (net of foreign taxes withheld of $1,819,576) .................... $ 17,232,469
Interest ................................................................... 2,236,288
------------
19,468,757
------------
Expenses:
Management fee (Note C) .................................................... 7,493,637
Services to shareholders (Note C) .......................................... 1,853,610
Custodian and accounting fees (Note C) ..................................... 1,701,588
Directors' fees and expenses (Note C) ...................................... 71,483
Reports to shareholders .................................................... 309,071
Auditing ................................................................... 86,214
Legal ...................................................................... 30,345
Registration fees .......................................................... 15,786
Amortization of organization expenses (Note A) ............................. 16,137
Other ...................................................................... 72,525
------------
11,650,396
------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 7,818,361
------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------
Net realized loss from:
Investments ................................................................ (5,823,960)
Foreign currency related transactions ...................................... (393,800)
------------
(6,217,760)
------------
Net unrealized appreciation (depreciation) during the period on:
Investments ................................................................ 136,973,831
Foreign currency related transactions ...................................... (21,461)
------------
136,952,370
------------
Net gain on investment transactions ........................................ 130,734,610
------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $138,552,971
------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
14 - Scudder Latin America Fund
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
YEARS ENDED OCTOBER 31,
INCREASE (DECREASE) IN NET ASSETS 1996 1995
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income ......................................... $ 7,818,361 $ 3,061,657
Net realized loss from investment transactions ................ (6,217,760) (68,151,320)
Net unrealized appreciation (depreciation) on investment
transactions during the period .............................. 136,952,370 (193,283,640)
------------- -------------
Net increase (decrease) in net assets resulting
from operations ............................................. 138,552,971 (258,373,303)
------------- -------------
Distributions to shareholders from:
Net investment income ....................................... (4,560,568) --
------------- -------------
Net realized gains from investment transactions ............. -- (24,333,536)
------------- -------------
Fund share transactions:
Proceeds from shares sold ..................................... 119,002,707 199,888,429
Net asset value of shares issued to shareholders in
reinvestment of distributions ............................... 4,261,866 23,383,847
Cost of shares redeemed ....................................... (154,821,892) (232,138,679)
Redemption fees (Note A) ...................................... 226,801 1,459,400
------------- -------------
Net decrease in net assets from Fund share transactions ....... (31,330,518) (7,407,003)
------------- -------------
Increase (decrease) in net assets ............................. 102,661,885 (290,113,842)
Net assets at beginning of period ............................. 519,252,805 809,366,647
Net assets at end of period (including undistributed net
investment income of $5,240,925 and $2,376,933, ------------- -------------
respectively) ............................................... $ 621,914,690 $ 519,252,805
------------- -------------
OTHER INFORMATION
- ------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN FUND SHARES
Shares outstanding at beginning of period ..................... 32,011,664 33,122,382
------------- -------------
Shares sold ................................................... 6,222,218 11,349,018
Shares issued to shareholders in reinvestment of distributions 250,550 1,285,533
Shares redeemed ............................................... (8,335,458) (13,745,269)
------------- -------------
Net decrease in Fund shares ................................... (1,862,690) (1,110,718)
------------- -------------
Shares outstanding at end of period ........................... 30,148,974 32,011,664
------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
15 - Scudder Latin America Fund
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
The following table includes selected data for a share outstanding throughout each period and other
performance information derived from the financial statements.
<CAPTION>
FOR THE PERIOD
DECEMBER 8, 1992
(COMMENCEMENT
YEARS ENDED OCTOBER 31, OF OPERATIONS) TO
OCTOBER 31,
1996(a) 1995 1994 1993
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
-----------------------------------------------------------
Net asset value, beginning of period ............ $16.22 $ 24.44 $18.41 $12.00
-----------------------------------------------------------
Income from investment operations:
Net investment income (loss) .................... .25 .09 (.03) .03
Net realized and unrealized gain (loss) on
investment transactions ....................... 4.30 (7.62) 6.10 6.36
-----------------------------------------------------------
Total from investment operations ................ 4.55 (7.53) 6.07 6.39
-----------------------------------------------------------
Less distributions:
From net investment income ...................... (.15) -- -- --
In excess of net investment income .............. -- -- (.06) --
From net realized gains on investment transactions -- (.73) (.06) --
-----------------------------------------------------------
Total distributions ............................. (.15) (.73) (.12) --
-----------------------------------------------------------
Redemption fees (Note A) ........................ .01 .04 .08 .02
-----------------------------------------------------------
Net asset value, end of period .................. $20.63 $ 16.22 $24.44 $18.41
- ------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) ................................ 28.31 (30.96) 33.43 53.42(c)**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period ($ millions) .......... 622 519 809 261
Ratio of operating expenses, net to average
daily net assets (%) .......................... 1.96 2.08 2.01 2.00*
Ratio of operating expenses before expense
reductions, to average daily net assets (%) ... 1.96 2.11 2.05 2.69*
Ratio of net investment income (loss) to average
daily net assets (%) .......................... 1.32 .52 (.20) .44*
Portfolio turnover rate (%) ..................... 22.4 39.5 22.4 4.6*
Average commission rate paid (b) ................ $.0001 $ -- $ -- $ --
- ----------
<FN>
(a) Based on monthly average of shares outstanding during the period.
(b) Average commission rate paid per share of common and preferred stocks is
calculated for fiscal years beginning on or after September 1, 1995.
(c) Total return does not reflect the effect of the applicable redemption fees.
* Annualized
** Not annualized
</FN>
</TABLE>
16 - Scudder Latin America Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS
A. SIGNIFICANT ACCOUNTING POLICIES
Scudder Latin America Fund (the "Fund") is a non-diversified series of Scudder
International Fund, Inc. (the "Corporation"). The Corporation is organized as a
Maryland corporation and is registered under the Investment Company Act of 1940,
as amended, as an open-end, management investment company.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management estimates.
The policies described below are followed consistently by the Fund in the
preparation of its financial statements.
SECURITY VALUATION. Portfolio securities which are traded on U.S. or foreign
stock exchanges are valued at the most recent sale price reported on the
exchange on which the security is traded most extensively. If no sale occurred,
the security is then valued at the calculated mean between the most recent bid
and asked quotations. If there are no such bid and asked quotations, the most
recent bid quotation is used. Securities quoted on the National Association of
Securities Dealers Automatic Quotation ("NASDAQ") System, for which there have
been sales, are valued at the most recent sale price reported on such system. If
there are no such sales, the value is the high or "inside" bid quotation.
Securities which are not quoted on the NASDAQ System but are traded in another
over-the-counter market are valued at the most recent sale price on such market.
If no sale occurred, the security is then valued at the calculated mean between
the most recent bid and asked quotations. If there are no such bid and asked
quotations, the most recent bid quotation shall be used. Short-term investments
having a maturity of sixty days or less are valued at amortized cost.
All other securities are valued at their fair value as determined in good faith
by the Valuation Committee of the Board of Directors. Securities valued in good
faith by the Valuation Committee of the Board of Directors at fair value
amounted to $7,906,628 (1.3% of net assets) and have been noted in the
investment portfolio as of October 31, 1996. Their values have been estimated by
the Board of Directors in the absence of readily ascertainable market values.
However, because of the inherent uncertainty of valuation, those estimated
values may differ significantly from the values that would have been used had a
ready market for the securities existed, and the difference could be material.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
certain banks and broker/dealers whereby the Fund, through its custodian,
receives delivery of the underlying securities, the amount of which at the time
of purchase and each subsequent business day is required to be maintained at
such a level that the market value is equal to at least 100.5% of the resale
price.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Fund are maintained
in U.S. dollars. Foreign currency transactions are translated into U.S. dollars
on the following basis:
(i) market value of investment securities, other assets and liabilities at the
daily rates of exchange, and
(ii) purchases and sales of investment securities, dividend and interest income
and certain expenses at the daily rates of exchange prevailing on the
respective dates of such transactions.
The Fund does not isolate that portion of gains and losses on investments which
is due to changes in foreign exchange rates from that which is due to changes in
market prices of the investments. Such fluctuations are included with the net
realized and unrealized gains and losses from investments.
17 - Scudder Latin America Fund
<PAGE>
Net realized and unrealized gain (loss) from foreign currency related
transactions includes gains and losses between trade and settlement dates on
securities transactions, gains and losses arising from the sales of foreign
currency, and gains and losses between the ex and payment dates on dividends,
interest and foreign withholding taxes.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS. A forward foreign currency exchange
contract (forward contract) is a commitment to purchase or sell a foreign
currency at the settlement date at a negotiated rate. During the period, the
Fund utilized forward contracts as a hedge in connection with portfolio
purchases and sales of securities denominated in foreign currencies.
Forward contracts are valued at the prevailing forward exchange rate of the
underlying currencies and unrealized gain/loss is recorded daily. Forward
contracts having the same settlement date and broker are offset and any gain
(loss) is realized on the date of offset; otherwise, gain (loss) is realized on
settlement date. Realized and unrealized gains and losses which represent the
difference between the value of the forward contract to buy and the forward
contract to sell are included in net realized and unrealized gain (loss) from
foreign currency related transactions.
Certain risks may arise upon entering into forward contracts from the potential
inability of counterparties to meet the terms of their contracts. Additionally,
when utilizing forward contracts to hedge, the Fund gives up the opportunity to
profit from favorable exchange rate movements during the term of the contract.
FEDERAL INCOME TAXES. The Fund's policy is to comply with the requirements of
the Internal Revenue Code which are applicable to regulated investment companies
and to distribute all of its taxable income to its shareholders. Accordingly,
the Fund paid no federal income taxes and no federal income tax provision was
required.
As of October 31, 1996, the Fund had a net tax basis capital loss carryforward
of approximately $65,670,000, which may be applied against any realized net
taxable capital gains of each succeeding year until fully utilized or until
October 31, 2003, ($59,152,000) and October 31, 2004, ($6,518,000), the
respective expiration dates, whichever occurs first.
REDEMPTION FEES. In general, shares of the Fund may be redeemed at net asset
value. However, upon the redemption or exchange of shares held by shareholders
for less than one year, a fee of 2% of the lower of 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 redemption fee is included as an
addition to paid-in capital. Certain amounts have been reclassified in the
fiscal 1995 Statement of Changes in Net Assets and in the fiscal 1993, 1994 and
1995 Financial Highlights to conform with the fiscal 1996 presentation.
Effective September 5, 1996, the redemption fee will no longer be assessed.
DISTRIBUTION OF INCOME AND GAINS. Distribution of net investment income is made
annually. During any particular year net realized gains from investment
transactions, in excess of available capital loss carryforwards, would be
taxable to the Fund if not distributed and, therefore, will be distributed to
shareholders annually. An additional distribution may be made to the extent
necessary to avoid the payment of a four percent federal excise tax. Earnings
and profits distributed to shareholders on redemption of Fund shares ("tax
equalization") may be utilized by the Fund, to the extent permissible, as part
of the Fund's dividends paid deduction on its federal tax returns.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax regulations
which may differ from generally accepted accounting principles. These
differences primarily relate to investments in foreign denominated investments,
passive foreign investment companies, and certain securities sold at a loss. As
18 - Scudder Latin America Fund
<PAGE>
a result, net investment income (loss) and net realized gain (loss) on
investment transactions for a reporting period may differ significantly from
distributions during such period. Accordingly, the Fund may periodically make
reclassifications among certain of its capital accounts without impacting the
net asset value of the Fund.
The Fund uses the identified cost method for determining realized gain or loss
on investments for both financial and federal income tax reporting purposes.
ORGANIZATION COSTS. Costs incurred by the Fund in connection with its
organization and initial registration of shares have been deferred and are being
amortized on a straight-line basis over a five-year period.
OTHER. Investment security transactions are accounted for on a trade-date basis.
Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Dividend
income from certain portfolio companies may fluctuate significantly from year to
year due to dividend distribution policies of such companies.
B. PURCHASES AND SALES OF SECURITIES
During the year ended October 31, 1996, purchases and sales of investment
securities (excluding short-term investments) aggregated $125,183,079 and
$122,893,871, respectively.
C. RELATED PARTIES
Under the Investment Management Agreement (the "Agreement") with Scudder,
Stevens & Clark, Inc. (the "Adviser"), the Adviser directs the investments of
the Fund in accordance with its investment objectives, policies, and
restrictions. The Adviser determines the securities, instruments, and other
contracts relating to investments to be purchased, sold or entered into by the
Fund. In addition to portfolio management services, the Adviser provides certain
administrative services in accordance with the Agreement. The management fee
payable under the Agreement is equal to an annual rate of 1.25% of the Fund's
average daily net assets, computed and accrued daily and payable monthly. The
Agreement provides that if the Fund's expenses, exclusive of taxes, interest,
and extraordinary expenses, exceed specified limits, such excess, up to the
amount of the management fee, will be paid by the Adviser. For the year ended
October 31, 1996, the fee pursuant to the Agreement aggregated $7,493,637, of
which $663,863 is unpaid at October 31, 1996.
Scudder Service Corporation ("SSC"), a subsidiary of the Adviser, is the
transfer, dividend paying and shareholder service agent for the Fund. For the
year ended October 31, 1996, the amount charged to the Fund by SSC aggregated
$1,514,806, of which $122,144 is unpaid at October 31, 1996.
Scudder Trust Company ("STC"), a subsidiary of the Adviser, provides
recordkeeping and other services in connection with certain retirement and
employee benefit plans invested in the Fund. For the year ended October 31,
1996, the amount charged to the Fund by STC aggregated $5,093, of which $1,458
is unpaid at October 31, 1996.
Scudder Fund Accounting Corporation ("SFAC"), a subsidiary of the Adviser, is
responsible for determining the daily net asset value per share and maintaining
the portfolio and general accounting records of the Fund. For the year ended
October 31, 1996, the amount charged to the Fund by SFAC aggregated $318,478, of
which $28,886 is unpaid at October 31, 1996.
19 - Scudder Latin America Fund
<PAGE>
The Fund pays each of its Directors not affiliated with the Adviser $4,000
annually, plus specified amounts for attended board and committee meetings. For
the year ended October 31, 1996, Directors' fees and expenses aggregated
$71,483.
D. INVESTING IN EMERGING MARKETS
Investing in emerging markets may involve special risks and considerations not
typically associated with investing in the United States. These risks include
revaluation of currencies, high rates of inflation, repatriation restrictions on
income and capital, and future adverse political and economic developments.
Moreover, securities issued in these markets may be less liquid, subject to
government ownership controls, delayed settlements, and their prices more
volatile than those of comparable securities in the United States.
E. LINES OF CREDIT
The Fund and several affiliated Funds (the "Participants") share in a $500
million revolving credit facility for temporary or emergency purposes, including
the meeting of redemption requests that otherwise might require the untimely
disposition of securities. The Participants are charged an annual commitment fee
which is allocated among each of the Participants. Interest is calculated based
on the market rates at the time of the borrowing. The Fund may borrow up to a
maximum of 25 percent of its net assets under the agreement. In addition, the
Fund also maintains an uncommitted line of credit.
20 - Scudder Latin America Fund
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of Scudder International Fund, Inc. and to the
Shareholders of Scudder Latin America Fund:
We have audited the accompanying statement of assets and liabilities of Scudder
Latin America Fund including the investment portfolio, as of October 31, 1996,
and the related statement of operations for the year then ended, the statements
of changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the three years in the period then ended
and for the period December 8, 1992 (commencement of operations) to October 31,
1993. These financial statements and financial highlights are the responsibility
of the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1996, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Scudder Latin America Fund as of October 31, 1996, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the three
years in the period then ended and for the period December 8, 1992 (commencement
of operations) to October 31, 1993 in conformity with generally accepted
accounting principles.
Boston, Massachusetts COOPERS & LYBRAND L.L.P.
December 18, 1996
21 - Scudder Latin America Fund
<PAGE>
TAX INFORMATION
For its fiscal year ended October 31, 1996, the total amount of income received
by the Fund from sources within foreign countries and possessions of the United
States was $.273 per share (representing a total of $8,240,437). The total
amount of taxes paid by the Fund to such countries was $.060 per share
(representing a total of $1,819,576).
22 - Scudder Latin America Fund
<PAGE>
This Page
intentionally
left blank.
23 - Scudder Latin America Fund
<PAGE>
This Page
intentionally
left blank.
24 - Scudder Latin America Fund
<PAGE>
Officers and Directors
Daniel Pierce*
Chairman of the Board and Director
Nicholas Bratt*
President and Director
Paul Bancroft III
Director; Venture Capitalist and Consultant
Thomas J. Devine
Director; Consultant
Keith R. Fox
Director; President, Exeter Capital Management Corporation
William H. Gleysteen, Jr.
Director; President, The Japan Society, Inc.
Dudley Ladd*
Director
William H. Luers
Director; President, The Metropolitan Museum of Art
Dr. Wilson Nolen
Director; Consultant
Juris Padegs*
Director, Vice President and Assistant Secretary
Dr. Gordon Shillinglaw
Director; Professor Emeritus of Accounting, Columbia University
Graduate School of Business
Robert G. Stone, Jr.
Honorary Director; Chairman of the Board and Director,
Kirby Corporation
Robert W. Lear
Honorary Director; Executive-in-Residence, Visiting Professor,
Columbia University Graduate School of
Business
Elizabeth J. Allan*
Vice President
Joyce E. Cornell*
Vice President
Carol L. Franklin*
Vice President
Edmund B. Games, Jr.*
Vice President
Jerard K. Hartman*
Vice President
Thomas W. Joseph*
Vice President
David S. Lee*
Vice President and Assistant Treasurer
Thomas F. McDonough*
Vice President and Secretary
Pamela A. McGrath*
Vice President and Treasurer
Edward J. O'Connell*
Vice President and Assistant Treasurer
Kathryn L. Quirk*
Vice President and Assistant Secretary
Richard W. Desmond*
Assistant Secretary
Coleen Downs Dinneen*
Assistant Secretary
*Scudder, Stevens & Clark, Inc.
25 - Scudder Latin America Fund
<PAGE>
Investment Products and Services
The Scudder Family of Funds+++
- --------------------------------------------------------------------------------
Money Market
- ------------
Scudder U.S. Treasury Money Fund
Scudder Cash Investment Trust
Tax Free Money Market+
- ----------------------
Scudder Tax Free Money Fund
Scudder California Tax Free Money Fund*
Scudder New York Tax Free Money Fund*
Tax Free+
- ---------
Scudder Limited Term Tax Free Fund
Scudder Medium Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder High Yield Tax Free Fund
Scudder California Tax Free Fund*
Scudder Massachusetts Limited Term
Tax Free Fund*
Scudder Massachusetts Tax Free Fund*
Scudder New York Tax Free Fund*
Scudder Ohio Tax Free Fund*
Scudder Pennsylvania Tax Free Fund*
U. S. Income
- ------------
Scudder Short Term Bond Fund
Scudder GNMA Fund
Scudder Income Fund
Scudder Zero Coupon 2000 Fund
Scudder High Yield Bond Fund
Global Income
- -------------
Scudder Global Bond Fund
Scudder International Bond Fund
Scudder Emerging Markets Income Fund
Asset Allocation
- ----------------
Scudder Pathway Conservative Portfolio
Scudder Pathway Balanced Portfolio
Scudder Pathway Growth Portfolio
Scudder Pathway International Portfolio
U.S. Growth and Income
- ----------------------
Scudder Balanced Fund
Scudder Growth and Income Fund
U.S. Growth
- -----------
Value
Scudder Capital Growth Fund
Scudder Value Fund
Scudder Small Company Value Fund
Scudder Micro Cap Fund
Growth
Scudder Classic Growth Fund
Scudder Quality Growth Fund
Scudder Development Fund
Scudder 21st Century Growth Fund
Global Growth
- -------------
Worldwide
Scudder Global Fund
Scudder International Fund
Scudder Global Discovery Fund
Scudder Gold Fund
Regional
Scudder Greater Europe Growth Fund
Scudder Emerging Markets Growth Fund
Scudder Pacific Opportunities Fund
Scudder Latin America Fund
The Japan Fund
Retirement Programs
- -------------------
IRA
SEP IRA
SIMPLE IRA
Keogh Plan
401(k), 403(b) Plans
Scudder Horizon Plan *+++ +++
(a variable annuity)
Closed-End Funds#
- --------------------------------------------------------------------------------
The Argentina Fund, Inc.
The Brazil Fund, Inc.
The First Iberian Fund, Inc.
The Korea Fund, Inc.
The Latin America Dollar Income Fund, Inc.
Montgomery Street Income Securities, Inc.
Scudder New Asia Fund, Inc.
Scudder New Europe Fund, Inc.
Scudder World Income Opportunities
Fund, Inc.
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. +++Funds within categories are listed from expected
least to most risk. +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.
26 - Scudder Latin America Fund
<PAGE>
How to Contact Scudder
<TABLE>
<CAPTION>
Account Service and Information
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
For existing account services and transactions
Scudder Investor Relations -- 1-800-225-5163
For 24 hour account information, fund information, exchanges, and an overview of all the services available to you
Scudder Electronic Account Services -- http://funds.scudder.com
For information about your Scudder accounts, exchanges and redemptions
Scudder Automated Information Line (SAIL) -- 1-800-343-2890
Investment Information
- -----------------------------------------------------------------------------------------------------------------------------------
For information about the Scudder funds, including additional applications and prospectuses, or for answers to
investment questions
Scudder Investor Relations -- 1-800-225-2470
[email protected]
Scudder's World Wide Web Site -- http://funds.scudder.com
For establishing 401(k) and 403(b) plans
Scudder Defined Contribution Services -- 1-800-323-6105
Scudder Brokerage Services
- -----------------------------------------------------------------------------------------------------------------------------------
To receive information about this discount brokerage service and to obtain an application
Scudder Brokerage Services* -- 1-800-700-0820
Please address all correspondence to
- -----------------------------------------------------------------------------------------------------------------------------------
The Scudder Funds
P.O. Box 2291
Boston, Massachusetts
02107-2291
Or Stop by a Scudder Funds Center
- -----------------------------------------------------------------------------------------------------------------------------------
Many shareholders enjoy the personal, one-on-one service of the Scudder Funds Centers. Check for a Funds
Center near you--they can be found in the following cities:
Boca Raton Chicago San Francisco
Boston New York
For information on Scudder Treasurers Trust(TM), an institutional cash management service for corporations,
non-profit organizations and trusts which utilizes certain portfolios of Scudder Fund, Inc.* ($100,000 minimum),
call: 1-800-541-7703.
For information on Scudder Institutional Funds**, funds designed to meet the broad investment management and
service needs of banks and other institutions, call: 1-800-854-8525.
Scudder Investor Relations and Scudder Funds Centers are services provided through Scudder Investor Services, Inc., Distributor.
* Scudder Brokerage Services, Inc., 42 Longwater Drive, Norwell, MA 02061-- Member NASD/SIPC
** 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.
</TABLE>
27 - Scudder Latin America Fund
<PAGE>
Celebrating Over 75 Years of Serving Investors
Established in 1919 by Theodore Scudder, Sidney Stevens, and F. Haven Clark,
Scudder, Stevens & Clark was the first independent investment counsel firm in
the United States. Since its birth, Scudder's pioneering spirit and commitment
to professional long-term investment management have helped shape the investment
industry. In 1928, we introduced the nation's first no-load mutual fund. Today
we offer over 40 pure no load(TM) funds, including the first international
mutual fund offered to U.S. investors.
Over the years, Scudder's global investment perspective and dedication to
research and fundamental investment disciplines have helped us become one of the
largest and most respected investment managers in the world. Though times have
changed since our beginnings, we remain committed to our long-standing
principles: managing money with integrity and distinction; keeping the interests
of our clients first; providing access to investments and markets that may not
be easily available to individuals; and making investing as simple and
convenient as possible through friendly, comprehensive service.
This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
SCUDDER (logo)
