[Image] Scudder Emerging Markets Growth Fund Profile [Image]
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The fund profile, a supplement to the full prospectus, is designed as
an easy-to-read summary of fund risks, fees, and objectives. You can
click on any question to link to the Fund's prospectus and get more
information on that topic. Or, if you wish, you can proceed directly
to the Fund's prospectus. Once you have read the prospectus and
considered your investment goals, you can proceed to a Scudder Funds
application.
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Fund Profile
July 1, 1997
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1. What Is The Fund's Objective?
Scudder Emerging Markets Growth Fund seeks long-term growth of capital
primarily through equity investment in emerging markets around the
globe.
2. What Does The Fund Invest In?
The Fund invests primarily (at least 65% of total assets) in the
equity securities of emerging market governments and companies around
the globe. The Fund will focus its investments in countries and
regions where there appear to be the best value and appreciation
potential, subject to considerations of portfolio diversification and
liquidity. Within a market, the Fund's investment adviser, Scudder,
Stevens & Clark, Inc. seeks to identify companies with favorable
potential for appreciation through growing earnings or greater market
recognition over time. The Fund intends to allocate its investments
among at least three countries at all times. There is no limit on the
amount the Fund can invest in a specific country or region of the
world. The Fund's equity investments are common stock, preferred
stock, securities that may be converted into common stock, depositary
receipts and warrants.
The Fund may invest up to 35% of its total assets in emerging market
and domestic debt securities. Such securities may be rated below
investment grade; that is rated below Baa by Moody's Investors
Service, Inc. or below BBB by Standard & Poor's.
3. What Are The Risks Of Investing In The Fund?
Emerging market securities can be more volatile and less liquid than
securities in more developed markets. Foreign securities often have
less publicly available information and are subject to different
regulations than domestic securities. Political events, changes in the
perceived creditworthiness of issuers, higher brokerage costs,
fluctuating national interest rates, foreign taxes and movements in
foreign currencies will affect the value of the Fund's holdings which
determine the Fund's share price, which is likely to vary from day to
day.
Movements of the stock markets or in the types of securities held in
the Fund's portfolio may affect the Fund's share price. You incur
principal risk when you invest because your shares, when sold, may be
worth more or less than what you paid for them.
Because it is non-diversified, the Fund may invest in a smaller number
of issuers, which will subject it to greater market and credit risk
than a diversified fund. Furthermore, the Fund's holdings in unrated
securities and securities rated below investment-grade (i.e., "junk
bonds") carry a greater risk of default and more price volatility than
securities rated investment-grade.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking long-term
capital growth and:
o plan to hold your investment for the long-term (at least 5 years
or more),
o can tolerate fluctuations in share price,
o have or plan to have other investments for the benefit of
diversification, and
o understand the risks of investing in foreign securities.
5. What Are The Fund's Expenses And Fees?
There are two kinds of expenses that a shareholder may incur, directly
or indirectly, by investing in a mutual fund. These types of expenses,
as they relate to Scudder Emerging Markets Growth Fund are:
Shareholder transaction expenses --
Expenses charged directly to your account for various transactions.
Sales Commission to Purchase Shares (Sales None
Load)
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% *
Annual Fund operating expenses (after expense maintenance) --
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. Figures below are for the fiscal year ended
October 31, 1997, during which Scudder has agreed to maintain the
total annualized expenses of the Fund at not more than 2.00% of
average daily net assets. Had Scudder not done so, estimated
expenses would have amounted to 3.79%, including 1.25% for
management fees for the Fund's initial fiscal period (May 8, 1996 to
October 31, 1996) and 2.27% and 1.25% respectively, for the fiscal
year ending October 31, 1997. Scudder will continue this expense
maintenance until February 28, 1998. Scudder did not receive an
investment management fee for the Fund's initial fiscal period.
Investment management fee 0.98%
12b-1 fees None
Other expenses 1.02%
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Total Fund operating expenses 2.00%
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* Imposed only on redemptions or exchanges of shares held less than
one year.
Example:
Assuming a 5% annual return and redemption at the end of each
period, the total expenses relating to a $1,000 investment would be:
1 Year 3 Years
$20 $63
This example assumes reinvestment of all dividends and distributions
and that the total Fund operating expenses listed above remain the
same each year. This example should not be considered a representation
of past or future expenses or return. Actual Fund expenses and return
vary from year to year and may be higher or lower than those shown.
Please note that there is a $5 service fee if you request redemption
proceeds via wire.
6. How Has The Fund Performed Historically?
The Fund commenced operations on May 8, 1996. Performance is
historical and may not be indicative of future results. Total return
and principal value will fluctuate.
The Fund's Total Return for the period One Year Life of Fund
ended March 31, 1997 -----------------------
29.25% 31.01%
If the adviser had not maintained the Fund's expenses, total return
would have been lower.
If the adviser had not maintained the Fund's expenses, average annual
total return for the one year and life of fund periods would have been
lower.
7. Who Manages The Fund?
The Fund's investment adviser is Scudder, Stevens & Clark, Inc., a
leading provider of U.S. and international investment management for
clients throughout the world. The Fund is managed by a team of Scudder
investment professionals, who each play an important role in the
Fund's management process.
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 ten years
of financial industry experience.
8. How Can I Invest?
To make it easy for you to open an account, you may invest by mail,
phone, fax, or in person. The minimum initial investment is $2,500,
except that shareholders may open an account with at least $1,000 if
an automatic investment plan of $100/month is established. Scudder
retirement plans and certain other accounts have similar or lower
minimum share balance requirements. A shareholder who maintains an
account balance of less than $2,500 without establishing an automatic
investment plan, will be assessed an annual fee of $10.00, payable to
the Fund. Retirement accounts and certain other accounts will not be
assessed the $10.00 charge. You may also exchange Fund shares free of
charge within the Scudder Family of Funds.
9. How Can I Redeem Shares?
You may redeem shares at the current share price on any business day
by telephone, fax, or mail. 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.
10. When Are Distributions Made?
The Fund typically makes dividends and capital gains distributions, if
any, in December. You may elect to receive distributions in cash or
have them reinvested in additional shares of the Fund.
Generally, dividends from net investment income are taxable to
shareholders as ordinary income. Long-term capital gains
distributions, if any, are taxable as long-term capital gains
regardless of the length of time shareholders have owned their shares.
Short-term capital gains and any other taxable distributions are
taxable as ordinary income.
11. What Services Does Scudder Provide?
As a shareholder, you'll enjoy:
o professional service from representatives who can answer your
questions and execute your transactions
o automated toll-free touchtone access to account information,
share prices and yields, and to perform transactions
o Scudder's quarterly shareholder newsletter, Scudder Perspectives
o regular, informative reports about the performance of your Fund
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[Image]Scudder wants you to make informed investment decisions. This
Fund Profile contains key information about the Fund. If you would
like more information before you invest, please consult the Fund's
accompanying prospectus. For details about the Fund's holdings or
recent investment strategies, please review the Fund's most recent
annual or semiannual report. The reports are free and may be ordered
by calling 1-800-225-2470.
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