[Image] Scudder International Growth and Income Fund Profile [Image]
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The fund profile, a supplement to the full prospectus, is designed as
an easy-to-read summary of fund risks, fees, and objectives. You can
click on any question to link to the Fund's prospectus and get more
information on that topic. Or, if you wish, you can proceed directly
to the Fund's prospectus. Once you have read the prospectus and
considered your investment goals, you can proceed to a Scudder Funds
application.
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Fund Profile
November 1, 1997
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1. What Is The Fund's Objective?
Scudder International Growth and Income Fund seeks long-term growth of
capital and current income primarily from foreign equity securities.
2. What Does The Fund Invest In?
The Fund invests primarily (at least 80% of net assets) in the equity
securities of established non-U.S. companies. The Fund invests
generally in equity securities of established companies listed on
foreign securities exchanges, which offer prospects for growth of
earnings while paying relatively high current dividends. The Fund may
also invest in securities traded over-the-counter. The Fund's equity
investments include common stock, convertible and non-convertible
preferred stock, sponsored and unsponsored depository receipts, and
warrants. The Fund can invest throughout the world, but will emphasize
investments in developed economies other than the U.S.; the Fund may
also invest in emerging markets. It is expected that the Fund's
investments will include companies of varying size as measured by
assets, sales or market capitalization.
The Fund's investment adviser, Scudder, Stevens & Clark, Inc., applies
a disciplined, multi-part investment approach for selecting stocks for
the Fund. The first stage of the process involves analyzing the pool
of foreign dividend-paying securities, and targeting stocks that have
high relative yields compared to the average for their markets. The
second stage involves a fundamental analysis of each company's
financial strength, profitability, projected earnings, competitive
positioning, and ability of management. The third stage involves
diversifying the portfolio among different industry sectors. The
fourth and final stage is diversifying the portfolio among different
countries. The Fund intends normally to have invested in securities of
issuers in at least three different countries other than the U.S. The
Fund's strategy is to manage risk and create opportunity at each of
its four stages in the investment process, starting with the focus on
stocks with high relative yields.
The Fund may also invest in debt securities convertible into common
stock, and fixed income securities of governments, supranational
agencies and private issuers, and may also hold foreign fixed income
securities.
3. What Are The Risks Of Investing In The Fund?
The Fund's net asset value (price) can fluctuate with changes in world
stock market levels, political developments, movements in currencies,
investment flows and other factors. 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 and foreign tax provisions will
affect the value of the Fund's holdings which determine the Fund's
share price. Other considerations include greater market volatility,
difficulty of enforcing obligations in other countries, and possible
longer settlement periods. The Fund's investments are generally
denominated in foreign currencies, therefore, the Fund may incur
currency conversion costs and the strength or weakness of the U.S.
dollar against these currencies may result in fluctuations of the
Fund's share price, which is likely to vary from day to day. You incur
principal risk when you invest because your shares, when sold, may be
worth more or less than what you paid for them.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking capital growth
and current income 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 International Growth and Income Fund are:
Shareholder transaction expenses --
Expenses charged directly to your account for various transactions.
Please note that there is a $5 service fee if you request redemption
proceeds via wire.
Sales Commission to Purchase Shares (Sales None
Load)
Commissions to Reinvest Dividends None
Redemption Fee None
Exchange Fee None
Annual Fund operating expenses (after expense maintenance) --
Expenses paid by the Fund before it distributes its net investment
income, expressed as a percentage of the Fund's average daily net
assets. Figures below have been estimated for the initial fiscal
year during which Scudder (and certain of its subsidiaries) have
agreed to maintain the total annualized expenses of the Fund at not
more than 1.75% of average daily net assets. Had such entities not
done so, it is estimated that the total operating expenses would
have amounted to 3.14%, including 1.00% for management fees. Scudder
will continue this expense maintenance until June 30, 1998.
Investment management fee (after waiver) 0.00%
12b-1 fees None
Other expenses (after waiver) 1.75%
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Total Fund operating expenses (after waiver) 1.75%
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Example:
Assuming a 5% annual return and redemption at the end of each
period, the total expenses relating to a $1,000 investment would be:
1 Year 3 Years
$18 $55
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.
6. How Has The Fund Performed Historically?
This chart shows how the Fund has performed since it commenced
operations on June 5, 1997, assuming reinvestment of all
distributions. Performance is historical and is no guarantee of future
results. Total return and principal value will fluctuate.
The Fund's Total Return for the period
ended September 30, 1997
Life of Fund 3.42%*
* Not annualized. If the adviser had not maintained the Fund's
expenses, total return 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
investment process.
Lead Portfolio Manager Sheridan Reilly joined Scudder in 1995 and is a
member of Scudder's Global Equity Group. Mr. Reilly has over 10 years
of industry experience focusing on strategies for global portfolios,
currency hedging, and foreign equity markets. Portfolio Manager Irene
Cheng joined Scudder in 1993. Ms. Cheng, who has over 13 years of
industry experience, focuses on portfolio management, research, and
equity analysis for Scudder's institutional international equity
accounts.
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 my 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 a
nonfiduciary 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.
10. When Are Distributions Made?
The Fund typically makes distributions semiannually in June and
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 income 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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