SCUDDER INTERNATIONAL FUND INC
485APOS, 1998-12-28
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              Filed electronically with the Securities and Exchange
                         Commission on December 28, 1998

                                                              File No. 2-14400
                                                              File No. 811-642

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                    FORM N-1A


             REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

                           Pre-Effective Amendment No.
                         Post-Effective Amendment No. 67
                                                      --
                                     and/or
                        REGISTRATION STATEMENT UNDER THE
                         INVESTMENT COMPANY ACT OF 1940

Amendment No. 47
              --
                        Scudder International Fund, Inc.
                        --------------------------------
               (Exact Name of Registrant as Specified in Charter)

                       345 Park Avenue, New York, NY 10154
                       -----------------------------------
               (Address of Principal Executive Offices) (Zip Code)

       Registrant's Telephone Number, including Area Code: (617) 295-2567
                                                           --------------
                               Thomas F. McDonough
                        Scudder Kemper Investments, Inc.
                 Two International Place, Boston, MA 02110-4103
                 ----------------------------------------------
                     (Name and Address of Agent for Service)

It is proposed that this filing will become effective (check appropriate box):

/   /     Immediately upon filing pursuant to paragraph (b)
/   /     days after filing pursuant to paragraph (a)(2)
/ X /     On March 1, 1999 pursuant to paragraph (a)(1)
/   /     days after filing pursuant to paragraph (a)(1)
/   /     On (date) pursuant to paragraph (a)(2) of Rule 485.
/   /     On _____  pursuant to paragraph (b)

          If Appropriate, check the following box:
/   /     This post-effective amendment designates a new effective date
          for a previously filed post-effective amendment

<PAGE>


                        SCUDDER INTERNATIONAL FUND, INC.
                           SCUDDER LATIN AMERICA FUND
                       SCUDDER PACIFIC OPPORTUNITIES FUND
                       SCUDDER GREATER EUROPE GROWTH FUND
                      SCUDDER EMERGING MARKETS GROWTH FUND
                        SCUDDER INTERNATIONAL GROWTH FUND
                        SCUDDER INTERNATIONAL VALUE FUND
                  SCUDDER INTERNATIONAL GROWTH AND INCOME FUND
                           SCUDDER INTERNATIONAL FUND
              International Shares and Barrett International Shares

                                       1
<PAGE>

The Securities and Exchange has not approved or disapproved these securities or
passed upon the adequacy of this prospectus. Any representation to the contrary
is a criminal offense.

SCUDDER GREATER EUROPE GROWTH FUND
SCUDDER LATIN AMERICA FUND
SCUDDER PACIFIC OPPORTUNITIES FUND

PROSPECTUS
MARCH 1, 1999

These funds seek to provide long-term capital appreciation through investment
primarily in equity securities of each region.

Mutual funds:
o   are not FDIC-insured
o   have no bank guarantees
o   may lose value

- ---------------------
No Sales Charges
- ---------------------
PURE NO-LOAD(TM)
- ---------------------
<PAGE>

CONTENTS

INTERNATIONAL INVESTING........................................3
  Investment Approach..........................................3
SCUDDER GREATER EUROPE GROWTH FUND.............................5
FUND DESCRIPTION...............................................5
  Investment objective.........................................5
  Investment strategies........................................5
  Other investments............................................6
  Risk management strategies...................................6
  Main risks...................................................6
ABOUT THE FUND.................................................7
Additional information you should know about the fund
  Past performance.............................................8
  Expense information..........................................8
SCUDDER LATIN AMERICA FUND.....................................9
FUND DESCRIPTION...............................................9
  Investment objective.........................................9
  Investment strategies........................................9
  Other investments...........................................10
  Risk management strategies..................................10
  Main risks..................................................10
ABOUT THE FUND................................................12
Additional information you should know about the fund
  Past performance............................................12
  Expense information.........................................12
SCUDDER PACIFIC OPPORTUNITIES FUND............................14
FUND DESCRIPTION..............................................14
  Investment objective........................................14
  Investment strategies.......................................14
  Other investments...........................................15
  Risk management strategies..................................15
  Main risks..................................................15
ABOUT THE FUND................................................16
Additional information you should know about the fund
  Past performance............................................16
  Expense information.........................................17
ABOUT THE FUNDS...............................................19
  Investment adviser..........................................17
  Distributions and taxes.....................................20
  Financial highlights........................................21
ABOUT YOUR INVESTMENT.........................................22


                                        2
<PAGE>

Information about managing your fund account
  Transaction information.....................................22
  Buying and selling shares...................................25
  Purchases...................................................25
  Exchanges and redemptions...................................26
  Investment products and services............................27


                                       3
<PAGE>

INTERNATIONAL INVESTING

INVESTMENT APPROACH

These funds invest primarily in equity securities of different regions of the
world. Each fund has its own goal, investment strategy and risk profile.

International funds offer easy access to countries and markets that can be very
difficult for investors to enter on their own. Foreign markets follow their own
economic cycles, so foreign investments can serve to diversify a portfolio of
U.S. investments. At the same time, foreign markets have been more volatile than
the U.S. market. International investments carry additional risks, including
potentially unfavorable currency exchange rates, political disturbances, and
incomplete or inaccurate accounting information on companies.

The funds' investment goals and strategies may be changed without a vote of
shareholders.

Are International Funds Right for You?

International funds may be a good choice for you if:

o     you have a well-balanced portfolio of domestic investments and would like
      to gain some exposure to foreign markets

o     you are not looking for a source of regular income

o     you can invest for at least five years

o     you can handle potentially large ups and downs in performance

Each fund may be appropriate to gain foreign equity exposure in an investor's
portfolio. Each is considered a growth fund and should not be viewed as a
complete investment program.


                                       4
<PAGE>

- --------------------------------------------------------------------------------
SCUDDER GREATER EUROPE GROWTH FUND
- --------------------------------------------------------------------------------

FUND DESCRIPTION

INVESTMENT OBJECTIVE

The fund seeks to provide long-term growth of capital through investments
primarily in the equity securities of European companies.

INVESTMENT STRATEGIES

The fund seeks to achieve its investment objective by investing at least 80% of
its total assets in the equity securities of European companies.

The fund defines a European company as:

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

o     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 that it will invest primarily in the more established countries
of Western Europe, however it may also invest in the lesser developed Southern
and Eastern European markets as well as in the former communist countries of the
Soviet Union.

In managing the portfolio, the portfolio management team seeks out well managed
companies, both large multinationals and smaller local firms they believe stand
to benefit from current developments in the European markets. These developments
include increased privatizations and corporate restructurings, global expansion
by major European companies of both exports and production, accelerating
economic growth and the completion of the European Union. The portfolio
management team believes that active management, based on disciplined
fundamental research will yield promising investment opportunities for long-term
capital appreciation.

OTHER INVESTMENTS

The fund may invest up to 20% of its total assets in European debt securities,
including debt securities that are rated below investment grade (commonly
referred to as "junk bonds").


                                       5
<PAGE>

RISK MANAGEMENT STRATEGIES

The fund may also use certain derivatives (investments whose value is based on
indices or other securities).

As a defensive measure the fund may invest without limit in 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. In such a case, the fund would not be pursuing its
investment objective and may not achieve its goals.

MAIN RISKS

The primary factor affecting this fund's performance is stock market movements
in the countries in which the fund is invested. Foreign investments,
particularly investments in emerging markets, carry added risks due to
inadequate or inaccurate financial information about companies, potential
political disturbances and fluctuations in currency exchange rates. In addition,
the portfolio management teams choice of countries market sectors or specific
investments may not perform as well as expected, and the fund could underperform
its peers or lose money.

In addition, as a non-diversified investment company, the fund may invest a
greater proportion of its assets in a smaller number of issuers than a
diversified investment company. An investment in the fund may involve greater
risk than an investment in a diversified fund.

The use of certain derivatives could magnify losses.

More information about these and other investments and strategies of the fund is
provided in the Statement of Additional Information. Of course, there can be no
guarantee that, by following these strategies, the fund will achieve its
objective.


                                       6
<PAGE>

ABOUT THE FUND

SCUDDER GREATER EUROPE GROWTH FUND

PAST PERFORMANCE

The chart and table below provide some indication of the risks of investing in
the fund by illustrating how the fund has performed and comparing this
information to a broad measure of market performance. Of course, past
performance is not necessarily an indication of future performance.

Total returns for years ended December 31 [Bar Graphics To Be Inserted]

- ------------------------------------------
Total
Return:
- ------------------------------------------
Year:    1994   1995   1996   1997   1998
- ------------------------------------------

For the periods included in the bar chart, the fund's highest return for a
calendar quarter was ______ % (the __ quarter of 19__), and the fund's lowest
return for a calendar quarter was _______% (the __ quarter of 19__).

The fund's year-to-date total return as of [_______] was [_______ %].

- --------------------------------------------------------------------------------
Average annual total returns
- --------------------------------------------------------------------------------
For periods ended December           Scudder Greater          Morgan Stanley
   31, 1998                         Europe Growth Fund            Capital
                                                               International
                                                               (MSCI) Europe
                                                                   Index
- --------------------------------------------------------------------------------
One Year                                  xx.xx%                  xx.xx%
- --------------------------------------------------------------------------------
Five Years                                xx.xx%                  xx.xx%
- --------------------------------------------------------------------------------
Since Inception (10/10/94)*               xx.xx%                  xx.xx%
- --------------------------------------------------------------------------------

The Morgan Stanley Capital International (MSCI) Europe Index is an unmanaged
capitalization-weighted measure of 14 stock markets in Europe. Index returns
assume dividends reinvested net of withholding tax and, unlike fund returns, do
not reflect any fees or expenses.

*The fund commenced operations on October 10, 1994. Index comparisons begin
October 31, 1994.


                                       7
<PAGE>

FEE AND EXPENSE INFORMATION

Scudder Family of Funds pure no-load(TM) fund

This information is designed to help you understand the costs of investing in
the fund.

- --------------------------------------------------------------------------------
Shareholder Fees: Fees paid directly from your investment.
- --------------------------------------------------------------------------------
Maximum sales charge (load) imposed on purchases (as % of       NONE
offering price)
- --------------------------------------------------------------------------------
Maximum deferred sales charge (load)                            NONE
- --------------------------------------------------------------------------------
Maximum sales charge (load) imposed on reinvested               NONE
dividends/distributions
- --------------------------------------------------------------------------------
Redemption fee (as % of amount redeemed, if applicable)         NONE*
- --------------------------------------------------------------------------------
Exchange fee                                                    NONE
- --------------------------------------------------------------------------------
Annual fund operating expenses (expenses that are deducted from fund assets)
- --------------------------------------------------------------------------------
Management fee                                                  x.xx%
- --------------------------------------------------------------------------------
Distribution (12b-1) fees                                       NONE
- --------------------------------------------------------------------------------
Other expenses                                                  x.xx%
- --------------------------------------------------------------------------------
Total annual fund operating expenses                            x.xx%
- --------------------------------------------------------------------------------

*     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 --
      Exchanges or Redemptions."

Example

This example is to help you compare the cost of investing in the fund with the
cost of investing in other mutual funds.

This example illustrates the impact of the above fees and expenses on an account
with an initial investment of $10,000, based on the expenses shown above. It
assumes a 5% annual return, the reinvestment of all dividends and distributions
and "annual fund operating expenses" remaining the same each year. The expenses
would be the same whether you sold your shares at the end of each period or
continued to hold them.

- --------------------------------------------------------------------------------
One Year                                $___
- --------------------------------------------------------------------------------
Three Years                             $___
- --------------------------------------------------------------------------------
Five Years                              $___
- --------------------------------------------------------------------------------
Ten Years                               $___
- --------------------------------------------------------------------------------

Actual fund expenses and return vary from year to year, and may be higher or
lower than those shown.


                                       8
<PAGE>

- --------------------------------------------------------------------------------
SCUDDER LATIN AMERICA FUND
- --------------------------------------------------------------------------------

FUND DESCRIPTION

INVESTMENT OBJECTIVE

The fund seeks long-term capital appreciation through investment primarily in
the securities of Latin American issuers.

INVESTMENT STRATEGIES

The fund pursues its investment objective by investing at least 65% of its total
assets in the securities of Latin American issuers. The fund normally invests at
least 65% of its total assets in equity securities, of which, at least 50% of
the fund's total assets will be invested in Latin American equity securities.
The fund may invest the balance of its assets in non-Latin American equity
securities.

The fund defines Latin America as Mexico, Central America, South America and the
Spanish-speaking islands of the Caribbean.

The fund defines securities of Latin American issuers as follows:

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

o     securities issued or guaranteed by the government of a Latin American
      country, its agencies or instrumentalities, political subdivisions or the
      central bank of such country;

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

o     securities of Latin American issuers, as defined above, in the form of
      depositary shares.

Presently, the fund expects to focus its investments in Argentina, Brazil,
Chile, Colombia, Mexico and Peru.

In managing its portfolio, the portfolio management team seeks out investment
opportunities created from changing economic and political trends in Latin
America. These trends are supported by governmental initiatives designed to
promote freer trade and market-oriented economies. The allocation between equity
and debt, and among countries in Latin America, varies based on a number of
factors, including:


                                       9
<PAGE>

o     expected rates of economic and corporate profit growth;

o     past performance and current and comparative valuations in Latin American
      capital markets;

o     the level and anticipated direction of interest rates;

o     changes or anticipated changes in Latin American government policy; and

o     the condition of the balance of payments and changes in the terms of trade

The portfolio management team believes that active management, based on
disciplined fundamental research will yield promising investment opportunities
for long-term capital appreciation.

RISK MANAGEMENT STRATEGIES

The fund may also use certain derivatives (investments whose value is based on
indices or other securities).

As a temporary defensive measure the fund may invest without limit in cash or
cash equivalents and money market instruments, or invest all or a portion of its
assets in securities of U.S. or other non-Latin American issuers. In such a
case, the fund would not be pursuing its investment objective and may not
achieve its goals.

MAIN RISKS

The primary factor affecting this fund's performance is stock market movements
in the countries in which the fund is invested. Foreign investments,
particularly investments in emerging markets, carry added risks due to
inadequate or inaccurate financial information about companies, potential
political disturbances and fluctuations in currency exchange rates. In addition,
the portfolio management teams choice of countries market sectors or specific
investments may not perform as well as expected, and the fund could underperform
its peers or lose money.

In addition, as a non-diversified investment company, the fund may invest a
greater proportion of its assets in a smaller number of issuers than a
diversified investment company. An investment in the fund may involve greater
risk than an investment in a diversified fund.

The use of certain derivatives could magnify losses.

More information about these and other investments and strategies of the fund is
provided in the Statement of Additional Information. Of course, there can be no
guarantee that, by following these strategies, the fund will achieve its
objective.


                                       10
<PAGE>

ABOUT THE FUND

SCUDDER LATIN AMERICA FUND

PAST PERFORMANCE

The chart and table below provide some indication of the risks of investing in
the fund by illustrating how the fund has performed, and comparing this
information to a broad measure of market performance. Of course, past
performance is not necessarily an indication of future performance.

Total returns for years ended December 31 [Bar Graphics To Be Inserted]

- ------------------------------------------------------
Total
Return:
- ------------------------------------------------------
Year:     1993    1994   1995    1996   1997   1998
- ------------------------------------------------------

For the period included in the bar chart, the fund's highest return for a
calendar quarter was ______ % (the __ quarter of 19__), and the fund's lowest
return for a calendar quarter was _______% (the __ quarter of 19__).

The fund's year-to-date total return as of [_______] was [______ %].

- --------------------------------------------------------------------------------
Average annual total returns
- --------------------------------------------------------------------------------
For periods ended December     Scudder Latin America Fund     IFC Latin America
   31, 199_                                                   Investable Total
                                                                Return Index
- --------------------------------------------------------------------------------
One Year                                 xx.xx%                    xx.xx%
- --------------------------------------------------------------------------------
Five Years                               xx.xx%                    xx.xx%
- --------------------------------------------------------------------------------
Since Inception (12/8/92)*               xx.xx%                    xx.xx%
- --------------------------------------------------------------------------------

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 fees or expenses.

*The fund commenced operations on December 8, 1992. Index comparisons begin
December 31, 1992.


                                       11
<PAGE>

FEE AND EXPENSE INFORMATION

Scudder Family of Funds pure no-load(TM) fund

This information is designed to help you understand the costs of investing in
the fund.

- --------------------------------------------------------------------------------
Shareholder Fees: Fees paid directly from your investment.
- --------------------------------------------------------------------------------
Maximum sales charge (load) imposed on purchases (as % of       NONE
offering price)
- --------------------------------------------------------------------------------
Maximum deferred sales charge (load)                            NONE
- --------------------------------------------------------------------------------
Maximum sales charge (load) imposed on reinvested               NONE
dividends/distributions
- --------------------------------------------------------------------------------
Redemption fee (as % of amount redeemed, if applicable)         NONE*
- --------------------------------------------------------------------------------
Exchange fee                                                    NONE
- --------------------------------------------------------------------------------
Annual fund operating expenses (expenses that are deducted from fund assets)
- --------------------------------------------------------------------------------
Management fee                                                  x.xx%
- --------------------------------------------------------------------------------
Distribution (12b-1) fees                                       NONE
- --------------------------------------------------------------------------------
Other expenses                                                  x.xx%
- --------------------------------------------------------------------------------
Total annual fund operating expenses                            x.xx%
- --------------------------------------------------------------------------------

*     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 --
      Exchanges or Redemptions."

Example

This example is to help you compare the cost of investing in the fund with the
cost of investing in other mutual funds.

This example illustrates the impact of the above fees and expenses on an account
with an initial investment of $10,000, based on the expenses shown above. It
assumes a 5% annual return, the reinvestment of all dividends and distributions
and "annual fund operating expenses" remaining the same each year. The expenses
would be the same whether you sold your shares at the end of each period or
continued to hold them.

- --------------------------------------------------------------------------------
One Year                             $___
- --------------------------------------------------------------------------------
Three Years                          $___
- --------------------------------------------------------------------------------
Five Years                           $___
- --------------------------------------------------------------------------------
Ten Years                            $___
- --------------------------------------------------------------------------------

Actual fund expenses and return vary from year to year, and may be higher or
lower than those shown.


                                       12
<PAGE>

- --------------------------------------------------------------------------------
SCUDDER PACIFIC OPPORTUNITIES FUND
- --------------------------------------------------------------------------------

FUND DESCRIPTION

INVESTMENT OBJECTIVE

The fund seeks to provide long-term growth of capital through investment
primarily in the equity securities of Pacific Basin companies, excluding Japan.

INVESTMENT STRATEGIES

The fund invests in at least 65% of its total assets in equity securities of
Pacific Basin companies, excluding Japan. 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 fund may invest in other countries
in the Pacific Basin when their markets become sufficiently developed.

The fund defines securities of Pacific Basin companies as follows:

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

o     securities of companies, wherever organized, where 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 investment program focuses on the smaller, emerging markets in this
region of the world. The portfolio management seeks to achieve its objective by
using intensive fundamental research to locate attractive, undervalued companies
with excellent management, dominant market positions, clear competitive
advantages, and strong balance sheets. The portfolio management team seeks to
position the fund in stable, established companies which they believe will
prosper as the regional economy recovers. The portfolio management team
evaluates investments for the fund from both a macroeconomic and a microeconomic
perspective, using extensive field research. Macroeconomic analysis allows the
portfolio management team 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, high
growth potential, or innovative services, products or technologies.


                                       13
<PAGE>

OTHER INVESTMENTS

The fund may invest up to 35% of its total assets in high-quality foreign or
domestic debt securities.

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).

RISK MANAGEMENT STRATEGIES

The fund may also use certain derivatives (investments whose value is based on
indices or other securities).

As a defensive measure the fund may invest without limit in 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. In such a case, the fund would not be pursuing its investment
objective and may not achieve its goals.

MAIN RISKS

The primary factor affecting this fund's performance is stock market movements
in the countries in which the fund is invested. Foreign investments,
particularly investments in emerging markets, carry added risks due to
inadequate or inaccurate financial information about companies, potential
political disturbances and fluctuations in currency exchange rates. In addition,
the portfolio management teams choice of countries market sectors or specific
investments may not perform as well as expected, and the fund could underperform
its peers or lose money.

In addition, as a non-diversified investment company, the fund may invest a
greater proportion of its assets in a smaller number of issuers than a
diversified investment company. An investment in the fund may involve greater
risk than an investment in a diversified fund.

The use of certain derivatives could magnify losses.

More information about these and other investments and strategies of the fund is
provided in the Statement of Additional Information. Of course, there can be no
guarantee that, by following these strategies, the fund will achieve its
objective.


                                       14
<PAGE>

ABOUT THE FUND

SCUDDER PACIFIC OPPORTUNITIES FUND

PAST PERFORMANCE

The chart and table below provide some indication of the risks of investing in
the fund by illustrating how the fund has performed, and comparing this
information to a broad measure of market performance. Of course, past
performance is not necessarily an indication of future performance.

Total returns for years ended December 31 [Bar Graphics To Be Inserted]

- ---------------------------------------------------------
   Total
   Return:
- ---------------------------------------------------------
   Year:     1993    1994   1995    1996   1997   1998
- ---------------------------------------------------------

For the period included in the bar chart, the fund's highest return for a
calendar quarter was ______ % (the __ quarter of 19__), and the fund's lowest
return for a calendar quarter was _______% (the __ quarter of 19__).

The fund's year-to-date total return as of [_______] was [______ %].

- --------------------------------------------------------------------------------
Average annual total returns
- --------------------------------------------------------------------------------
For periods ended December         Scudder Pacific         MSCI All Country Asia
   31, 1998                       Opportunities Fund            Free Index
- --------------------------------------------------------------------------------
One Year                                xx.xx%                    xx.xx%
- --------------------------------------------------------------------------------
Five Years                              xx.xx%                    xx.xx%
- --------------------------------------------------------------------------------
Since Inception (12/8/92)*              xx.xx%                    xx.xx%
- --------------------------------------------------------------------------------
The Morgan Stanley Capital International (MSCI) All Country Asia Free Index is
an unmanaged capitalization-weighted measure of stock markets in the Pacific
Region, excluding Japan. Index returns assume dividends are reinvested and,
unlike fund returns, do not reflect any fees or expenses.

*The fund commenced operations on December 8m 1992. Index comparisons begin
December 31, 1992.


                                       15
<PAGE>

FEE AND EXPENSE INFORMATION

Scudder Family of Funds pure no-load(TM) fund

This information is designed to help you understand the costs of investing in
the fund.

- --------------------------------------------------------------------------------
Shareholder Fees:  Fees paid directly from your investment.
- --------------------------------------------------------------------------------
Maximum sales charge (load) imposed on purchases (as % of       NONE
offering price)
- --------------------------------------------------------------------------------
Maximum deferred sales charge (load)                            NONE
- --------------------------------------------------------------------------------
Maximum sales charge (load) imposed on reinvested               NONE
dividends/distributions
- --------------------------------------------------------------------------------
Redemption fee (as % of amount redeemed, if applicable)         2.00%*
- --------------------------------------------------------------------------------
Exchange fee                                                    2.00%*
================================================================================
Annual fund operating expenses (expenses that are deducted from fund assets)
- --------------------------------------------------------------------------------
Management fee                                                  x.xx%
- --------------------------------------------------------------------------------
Distribution (12b-1) fees                                       NONE
- --------------------------------------------------------------------------------
Other expenses                                                  x.xx%
- --------------------------------------------------------------------------------
Total annual fund operating expenses                            x.xx%
- --------------------------------------------------------------------------------

*    Currently, there is no fee to redeem or exchange. However, during the
     second quarter of 1999 a redemption fee policy will go into effect. A 2.00%
     fee will be retained by the fund and 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 --Exchanges or Redemptions."

Example

This example is to help you compare the cost of investing in the fund with the
cost of investing in other mutual funds.

This example illustrates the impact of the above fees and expenses on an account
with an initial investment of $10,000, based on the expenses shown above. It
assumes a 5% annual return, the reinvestment of all dividends and distributions
and "annual fund operating expenses" remaining the same each year. The expenses
would be the same whether you sold your shares at the end of each period or
continued to hold them.

- --------------------------------------------------------------------------------
One Year                                   $___
- --------------------------------------------------------------------------------
Three Years                                $___
- --------------------------------------------------------------------------------
Five Years                                 $___
- --------------------------------------------------------------------------------
Ten Years                                  $___
- --------------------------------------------------------------------------------

Actual fund expenses and return vary from year to year, and may be higher or
lower than those shown.


                                       16
<PAGE>

A MESSAGE FROM THE PRESIDENT

Scudder Kemper Investments, Inc., investment adviser to the Scudder Family of
Funds, is one of the largest and most experienced investment management
organizations worldwide. We manage more than $230 billion in assets globally for
mutual fund investors, retirement and pension plans, institutional and corporate
clients, and private family and individual accounts.

We offered America's first no-load mutual fund in 1928, and today the Scudder
Family of Funds includes over 50 no-load mutual fund portfolios or classes of
shares. We also manage 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 numerous other open- and closed-end funds that invest in this
country and other 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: IRAs, 401(k)s,
Keoghs and other retirement plans are also available.

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

The Scudder Family of Funds is offered without charges to purchase or redeem
shares or to exchange from one fund to another. There are no distribution
(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.

INVESTMENT ADVISER

The funds retain the investment management firm of Scudder Kemper Investments,
Inc., (the "Adviser"), 345 Park Avenue, New York, NY, to manage each fund's
daily investment and business affairs subject to the policies established by
each fund's Board of Directors. The Adviser actively manages each fund's
investments. Professional management can be an important advantage for investors
who do not have the time or expertise to invest directly in individual
securities.

Scudder Greater Europe Growth Fund

For the fiscal year ended October 31, 1998, the Adviser received an investment
management fee of _____% of the fund's average daily net assets on an annual
basis.

Scudder Latin America Fund


                                       17
<PAGE>

For the fiscal year ended October 31, 1998, the Adviser received an investment
management fee of _____% of the fund's average daily net assets on an annual
basis.

Scudder Pacific Opportunities Fund

For the fiscal year ended October 31, 1998, the Adviser received an investment
management fee of _____% of the fund's average daily net assets on an annual
basis.

PORTFOLIO MANAGEMENT

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

The following investment professionals are associated with each fund as
indicated:

Scudder Greater Europe Growth Fund

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
Name and Title            Joined the Fund    Responsibilities and Background
- --------------------------------------------------------------------------------------
<S>                       <C>                <C>
Carol L. Franklin         19__               Joined Scudder Kemper Investments in
Lead Portfolio Manager                       1981.  Ms. Franklin has over ten years
                                             of European research and investment
                                             management experience.
- --------------------------------------------------------------------------------------
Joan R. Gregory           19__               Joined Scudder Kemper Investments in
Portfolio Manager                            1992.  Ms. Gregory has been involved
                                             with investment in global and
                                             international stock since 1989.
- --------------------------------------------------------------------------------------
Nicholas Bratt            19__               Joined Scudder Kemper Investments in
Portfolio Manager                            1976. Mr. Bratt has over 20 years of
                                             experience in worldwide investing.
- --------------------------------------------------------------------------------------
</TABLE>


                                       18
<PAGE>

Scudder Latin America Fund

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
<S>                       <C>                <C>
Name and Title            Joined the Fund    Responsibilities and Background
- --------------------------------------------------------------------------------------
Edmund B. Games, Jr.      1992               Joined Scudder Kemper Investments in
Lead Portfolio Manager                       1960.  Mr. Games has focused on Latin
                                             American stocks since 1988.
- --------------------------------------------------------------------------------------
Tara C. Kenney            1996               Joined Scudder Kemper Investments in
Portfolio Manager                            1995. Ms. Kenney has over ten years of
                                             financial industry experience.  Ms.
                                             Kenney was a vice president of
                                             corporate finance for an investment
                                             banking firm for seven years, and most
                                             recently, a portfolio manager for three
                                             years.
- --------------------------------------------------------------------------------------
Paul Rogers               1996               Joined Scudder Kemper Investments in
Portfolio Manager                            1994.  Mr. Rogers is primarily
                                             responsible for research on Latin
                                             American corporations, and has over ten
                                             years of investment experience.
- --------------------------------------------------------------------------------------
</TABLE>

Scudder Pacific Opportunities Fund

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
Name and Title            Joined the Fund    Responsibilities and Background
- --------------------------------------------------------------------------------------
<S>                       <C>                <C>
Theresa Gusman            1997               Joined Scudder Kemper Investments in
Lead Portfolio Manager                       1995 after three years as a Pacific
                                             Basin analyst.  Ms. Gusman has fifteen
                                             years of experience in international
                                             investments.
- --------------------------------------------------------------------------------------
Elizabeth J. Allan        1994               Joined Scudder Kemper Investments in
Portfolio Manager                            1987 as a member of the portfolio
                                             management team of a closed-end mutual
                                             fund concentrating its investments in
                                             Asia.
- --------------------------------------------------------------------------------------
Nicholas Bratt            1992               Joined Scudder Kemper Investments in
Portfolio Manager                            1976. Mr. Bratt has over 20 years of
                                             experience in worldwide investing.
- --------------------------------------------------------------------------------------
</TABLE>

YEAR 2000 READINESS

Like other mutual funds and financial and business organizations worldwide, the
funds could be adversely affected if computer systems on which the funds rely,
which primarily include those used by the Adviser, its affiliates or other
service providers, are unable to correctly process date-related information on
and after January 1, 2000. The risk is commonly called the Year 2000 issue.
Failure to successfully address the Year 2000 issue could result in
interruptions to and other material adverse effects on the funds' business and
operations, such as problems with calculating net asset value and difficulties
in implementing the funds' purchase and redemption procedures. The Adviser has
commenced a review of the Year 2000 issue as it may affect the funds and is
taking steps it believes are reasonably designed to address the Year 2000 issue,
although there can be no assurances that these steps will be sufficient. In
addition,


                                       19
<PAGE>

there can be no assurances that the Year 2000 issue will not have an adverse
effect on the issuers whose securities are held by the funds or on global
markets or economies generally.

EURO CONVERSION

The planned introduction of a new European currency, the Euro, may result in
uncertainties for European securities in the markets in which they trade and
with respect to the operation of the fund's portfolio. Currently, the Euro is
expected to be introduced on January 1, 1999 by eleven European countries that
are members of the European Economic and Monetary Union (EMU). The introduction
of the Euro will require the redenomination of European debt and equity
securities over a period of time, which may result in various accounting
differences and/or tax treatments that otherwise would not likely occur.
Additional questions are raised by the fact that certain other EMU members,
including the United Kingdom, will not officially be implementing the Euro on
January 1, 1999. If the introduction of the Euro does not take place as planned,
there could be negative effects, such as severe currency fluctuations and market
disruptions.

The Adviser is actively working to address Euro-related issues and understands
that other key service providers are taking similar steps. At this time,
however, no one knows precisely what the degree of impact will be. To the extent
that the market impact or effect on the fund's portfolio holdings is negative,
it could hurt the fund's performance.

DISTRIBUTIONS AND TAXES

Dividends and capital gains distributions

Each fund intends to distribute dividends from its net investment income and net
realized capital gains after utilization of capital loss carryforwards, if any,
annually, in December. An additional distribution may be made, if necessary.

Any dividends or capital gains distributions declared in October, November or
December with a record date in such month and paid during the following January
will be treated by shareholders for federal income tax purposes as if received
on December 31 of the calendar year declared.

A shareholder may choose to receive distributions in cash or have them
reinvested in additional shares of a fund. Distributions are generally taxable,
whether received 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. Exchanges among funds are also
taxable events.


                                       20
<PAGE>

TAXES

Generally, dividends from net investment income are taxable to shareholders as
ordinary income. Long-term capital gains distributions, if any, are taxable to
shareholders as long-term capital gains, regardless of the length of time
shareholders have owned shares. Short-term capital gains and any other taxable
income distributions are taxable as ordinary income. A portion of dividends from
ordinary income may qualify for the dividend-received deduction for
corporations.

Unless your investment is in a tax-deferred account, you may want to avoid
investing a large amount close to the date of a distribution because you may
receive part of your investment back as a taxable distribution.

A sale or exchange of shares is a taxable event and may result in a capital gain
or loss which may be long-term or short-term, generally depending on how long
you owned the shares.

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

Each fund may be required to withhold U.S. federal income tax at the rate of 31%
of all taxable distributions payable to shareholders who fail to provide the
funds with their correct taxpayer identification number, or who have been
notified by the IRS that they are subject to backup withholding. Any such
withheld amounts may be credited against the shareholder's U.S. federal income
tax liability.

Shareholders may be subject to state, local and foreign taxes on fund
distributions and dispositions of fund shares. You should consult you tax
advisor regarding the particular consequences of an investment in a fund.

FINANCIAL HIGHLIGHTS

Scudder Greater Europe Growth Fund

The financial highlights table is intended to help you understand the fund's
financial performance for the fiscal periods indicated. Certain information
reflects financial results for a single fund share. The total return figures
represent the rate that an investor would have earned (or lost) on an investment
in the fund assuming reinvestment of all dividends and distributions. This
information has been audited by PricewaterhouseCoopers LLP whose report, along
with the fund's financial statements, is included in the annual report, which is
available upon request by calling Scudder Investor Relations at 1-800-225-2470
or, for existing investors, call the Scudder Automated Information Line (SAIL)
at 1-800-343-2890.

                                 [TO BE UPDATED]

Scudder Latin America Fund


                                       21
<PAGE>

The financial highlights table is intended to help you understand the fund's
financial performance for the fiscal periods indicated. Certain information
reflects financial results for a single fund share. The total return figures
represent the rate that an investor would have earned (or lost) on an investment
in the fund assuming reinvestment of all dividends and distributions. This
information has been audited by PricewaterhouseCoopers LLP whose report, along
with the fund's financial statements, is included in the annual report, which is
available upon request by calling Scudder Investor Relations at 1-800-225-2470
or, for existing investors, call the Scudder Automated Information Line (SAIL)
at 1-800-343-2890.

                                 [TO BE UPDATED]

Scudder Pacific Opportunities Fund

The financial highlights table is intended to help you understand the fund's
financial performance for the fiscal periods indicated. Certain information
reflects financial results for a single fund share. The total return figures
represent the rate that an investor would have earned (or lost) on an investment
in the fund assuming reinvestment of all dividends and distributions. This
information has been audited by PricewaterhouseCoopers LLP whose report, along
with the fund's financial statements, is included in the annual report, which is
available upon request by calling Scudder Investor Relations at 1-800-225-2470
or, for existing investors, call the Scudder Automated Information Line (SAIL)
at 1-800-343-2890.

                                 [TO BE UPDATED]

ABOUT YOUR INVESTMENT

TRANSACTION INFORMATION

Share price

Scudder Fund Accounting Corporation determines the net asset value per share of
each fund as of the close of regular trading on the New York Stock Exchange
(NYSE), normally 4 p.m. eastern time, on each day the NYSE 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. Market
prices are used to determine the value of the funds' assets, but when no
reliable market quotations are available, the funds may use valuation procedures
established by its Board.

To the extent that the funds invest in foreign securities, these securities may
be listed on foreign exchanges that trade on days when the funds do not price
their shares. As a result, the net asset value per share of the funds may change
at a time when shareholders are not able to purchase or redeem their shares.


                                       22
<PAGE>

Redemption fee

Applicable to Scudder Pacific Opportunities Fund Only

During the second quarter of 1999 a redemption fee policy will go into effect
for Scudder Pacific Opportunities Fund. Upon the redemption or exchange of
shares held less than one year, 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. The fee is waived for all shares purchased through
certain Scudder 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 waiver does
not apply to any IRA or SEP-IRA accounts. The fund reserves the right to modify
the terms of or terminate this fee at any time.

The fee applies to redemptions from the fund 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.

Processing time

All purchase and redemption requests received in good order by the funds'
transfer agent by the close of regular trading on the NYSE are executed at the
net asset value per share calculated at the close of trading that day. All other
requests that are in good order will be executed the following business day.

Signature guarantees

A signature guarantee is required when you sell more than $100,000 worth of
shares. You can obtain one from most brokerage houses and financial
institutions, although not from a notary public. The fund will normally send you
the proceeds within one business day following your request, but may take up to
seven business days (or longer in the case of shares recently purchased by
check).

Purchase restrictions

Purchases and sales should be made for long-term investment purposes only. The
funds and Scudder Investor Services, Inc. each reserves the right to reject
purchases of fund shares (including exchanges) for any reason including when
there is evidence of a pattern of frequent purchases and sales made in response
to short-term fluctuations in the funds' share price.


                                       23
<PAGE>

Minimum balances

Generally, shareholders who maintain a non-fiduciary account balance of less
than $2,500 in each fund and have not established an automatic investment plan
will be assessed, an annual $10.00 per fund charge; this fee is paid to each
fund. Each fund reserves the right, following 60 days written notice to
shareholders, to redeem all shares in accounts that have a value below $1,000
where such a reduction in value has occurred due to a redemption, exchange or
transfer out of the account.

Third party transactions

If you buy and sell shares of the funds through a member of the National
Association of Securities Dealers, Inc. (other than Scudder Investor Services,
Inc.), that member may charge a fee for that service.

Redemption-in-kind

Each fund reserves the right to honor any request for redemption or repurchase
by making payment in whole or in part in readily marketable securities
("redemption in kind") if the amount of such a request is large enough to affect
operations (for example, the request is greater than $250,000 or 1% of the
funds' assets). These securities will be chosen by each fund and valued as they
are for purposes of computing the funds' net asset value. A shareholder may
incur transaction expenses in converting these securities to cash.


                                       24
<PAGE>

BUYING AND SELLING SHARES

Please refer to the following charts for information on how to buy and sell fund
shares. Additional information, including special investment features, may be
found in the Shareholder Services Guide. For information about No-Fee IRAs, Roth
IRAs and other retirement options, call Scudder Investor Relations at
1-800-225-2470. For information on establishing 401(k) and 403(b) plans, call
Scudder Defined Contribution Services at 1-800-323-6105.

PURCHASES

To open an account

The minimum initial investment is $2,500; $1,000 for IRAs. Group retirement
plans (401(k), 403(b), etc.) have similar or lower minimums -- see appropriate
plan literature. Make checks payable to "The Scudder Funds."

<TABLE>
<S>             <C>
- --------------------------------------------------------------------------------------------
By Mail         Send your completed and signed application and check
                  by regular mail to:       or by express, registered, or certified mail to:

                  The Scudder Funds         The Scudder Funds
                  P.O. Box 2291             66 Brooks Drive
                  Boston, MA                Braintree, MA  02184
                  02107-2291
- --------------------------------------------------------------------------------------------
By Wire         Call 1-800-225-5163 for instructions.
- --------------------------------------------------------------------------------------------
In Person       Visit one of our Investor Centers to complete your
                application with the help of a Scudder representative. Investor
                Centers are located in Boca Raton, Boston, Chicago, New York and
                San Francisco.
- --------------------------------------------------------------------------------------------
</TABLE>

To buy additional shares

The minimum additional investment is $100; $50 for IRAs. Group retirement plans
(401(k), 403(b), etc.) have similar or lower minimums -- see appropriate plan
literature. Make checks payable to "The Scudder Funds."

<TABLE>
<S>             <C>
- --------------------------------------------------------------------------------------------
By Mail         Send a check with a Scudder investment slip, or with a
                letter of instruction including your account number and the
                complete fund name, to the appropriate address listed above.
- --------------------------------------------------------------------------------------------
By Wire         Call 1-800-225-5163 for instructions.
- --------------------------------------------------------------------------------------------
In Person       Visit one of our Investor Centers to make an additional investment
                in your Scudder fund account. Investor Center locations are listed
                above.
- --------------------------------------------------------------------------------------------
By Phone        Call 1-800-225-5163 for instructions.
- --------------------------------------------------------------------------------------------
By Automatic    You may arrange to make investments of $50 or more on a regular
Investment      basis through automatic deductions from your bank checking
Plan            account. Please call 1-800-225-5163 for more information and an
                enrollment form.
- ---------------------------------------------------------------------------------------
</TABLE>


                                       25
<PAGE>

EXCHANGES AND REDEMPTIONS

To exchange shares

The minimum investments are $2,500 to establish a new account and $100 to
exchange among existing accounts.

<TABLE>
<S>                 <C>
- -------------------------------------------------------------------------------------------
By Telephone        To speak with a service representative, call 1-800-225-5163 from 8
                    a.m. to 8 p.m. eastern time. To access SAIL(TM), The Scudder Automated
                    Information Line, call 1-800-343-2890 (24 hours a day).
- -------------------------------------------------------------------------------------------
By Mail or Fax      Print or type your instructions and include:
                    - the name of the fund and the account number you are
                      exchanging from;
                    - your name(s) and address as they appear on your account;
                    - the dollar amount or number of shares you wish to exchange;
                    - the name of the fund you are exchanging into;
                    - your signature(s) as it appears on your account; and
                    - a daytime telephone number.
                    Send your instructions    or by express, registered,       or by fax to:
                    by regular mail to:       or certified mail to:
                    The Scudder Funds         The Scudder Funds               1-800-821-6234
                    P.O. Box 2291             66 Brooks Drive
                    Boston, MA 02107-2291     Braintree, MA  02184
- -------------------------------------------------------------------------------------------
</TABLE>

To sell shares

<TABLE>
<S>                 <C>
- -------------------------------------------------------------------------------------------
By Telephone        To speak with a service representative, call 1-800-225-5163 from 8
                    a.m. to 8 p.m. eastern time. To access SAIL(TM), The Scudder
                    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 $100,000 sent to your
                    address of record.
- -------------------------------------------------------------------------------------------
By Mail or Fax      Send your instructions for redemption to the appropriate address or
                    fax number above and include:
                    - the name of the fund and account number you are redeeming from;
                    - your name(s) and address as they appear on your account;
                    - the dollar amount or number of shares you wish to redeem;
                    - your signature(s) as it appears on your account; and
                    - a daytime telephone number.
- -------------------------------------------------------------------------------------------
By Automatic        You may arrange to receive automatic cash payments periodically.
Withdrawal Plan     Call 1-800-225-5163 for more information and an enrollment form.
- -------------------------------------------------------------------------------------------
</TABLE>


                                       26
<PAGE>

INVESTMENT PRODUCTS AND SERVICES

The Scudder Family of Funds+

<TABLE>
<S>                                                   <C>
Money Market                                          U.S. Growth and Income
Scudder U.S. Treasury Money Fund                      Scudder Balanced Fund
Scudder Cash Investment Trust                         Scudder Dividend & Growth Fund
Scudder Money Market Series --                         Scudder Growth and Income Fund
   Prime Reserve Shares*                              Scudder S&P 500 Index Fund
   Premium Shares*                                    Scudder Real Estate Investment Fund
   Managed Shares*
Scudder Government Money Market                       U.S. Growth
   Series -- Managed Shares*                          Value
                                                         Scudder Large Company Value Fund
Tax Free Money Market+                                   Scudder Value Fund***
Scudder Tax Free Money Fund                              Scudder Small Company Value Fund
Scudder Tax Free  Money Market Series--                  Scudder Micro Cap Fund
   Managed Shares*                                    Growth
Scudder California Tax Free Money Fund**                 Scudder Classic Growth Fund***
Scudder New York Tax Free Money Fund**                   Scudder Large Company Growth Fund
                                                         Scudder Development Fund
Tax Free+                                                Scudder 21st Century Growth Fund
Scudder Limited Term Tax Free Fund
Scudder Medium Term Tax Free Fund                     Global Equity
Scudder Managed Municipal Bonds                       Worldwide
Scudder High Yield Tax Free Fund                         Scudder Global Fund
Scudder California Tax Free Fund**                       Scudder International Value Fund
Scudder Massachusetts Limited Term Tax Free Fund**       Scudder International Growth and Income Fund
Scudder Massachusetts Tax Free Fund**                    Scudder International Fund++
Scudder New York Tax Free Fund**                         Scudder International Growth Fund
Scudder Ohio Tax Free Fund**                             Scudder Global Discovery Fund***
Scudder Pennsylvania Tax Free Fund**                     Scudder Emerging Markets Growth Fund
                                                         Scudder Gold Fund
U.S. Income                                           Regional
Scudder Short Term Bond Fund                             Scudder Greater Europe Growth Fund
Scudder Zero Coupon 2000 Fund                            Scudder Pacific Opportunities Fund
Scudder GNMA Fund                                        Scudder Latin America Fund
Scudder Income Fund                                      The Japan Fund, Inc.
Scudder Corporate Bond Fund
Scudder High Yield Bond Fund                          Industry Sector Funds
                                                      Choice Series
Global Income                                            Scudder Financial Services Fund
Scudder Global Bond Fund                                 Scudder Health Care Fund
Scudder International Bond Fund                          Scudder Technology Fund
Scudder Emerging Markets Income Fund
                                                      Preferred Series
Asset Allocation                                      Scudder Tax Managed Growth Fund
Scudder Pathway Conservative Portfolio                Scudder Tax Managed Small Company Fund
Scudder Pathway Balanced Portfolio
Scudder Pathway Growth Portfolio
Scudder Pathway International Portfolio
</TABLE>


                                       27
<PAGE>

<TABLE>
<S>                                                   <C>
Retirement Programs and Education accounts
Traditional IRA                                       Scudder Horizon Plan **++(a variable annuity)
Roth IRA                                              Education IRA
SEP-IRA                                               UGMA/UTMA
Keogh Plan
401(k), 403(b) Plans

Closed-end funds#
The Argentina Fund, Inc.                              Scudder Global High Income Fund, Inc.
The Brazil Fund, Inc.                                 Scudder New Asia Fund, Inc.
The Korea Fund, Inc.                                  Scudder New Europe Fund, Inc.
Montgomery Street Income Securities, Inc.             Scudder Spain and Portugal Fund, Inc.
</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. +Funds within categories are listed in order from
expected least risk to most risk. Certain Scudder funds or classes thereof may
not be available for purchase or exchange. +A portion of the income from the
tax-free funds may be subject to federal, state, and local taxes. *A class of
shares of the fund. **Not available in all states. ***Only the Scudder Shares of
the fund are part of the Scudder Family of Funds. + +Only the International
Shares of the fund are part of the Scudder Family of Funds. ++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 Kemper Investments, Inc., are traded on the New York
Stock Exchange and, in some cases, on various foreign stock exchanges.


                                       28
<PAGE>

Additional information about the funds may be found in the Statement of
Additional Information, the Shareholder Service Guide and in shareholder
reports. The Statement of Additional Information contains more information on
fund investments and operations. The Shareholder Service Guide contains more
information about purchases and sales of fund shares. The semiannual and annual
shareholder reports contain a discussion of the market conditions and the
investment strategies that significantly affected the fund's performance during
the last fiscal year, as well as a listing of portfolio holdings and financial
statements. These and other fund documents may be obtained without charge from
the following sources:

<TABLE>
<S>                                                       <C>
- ------------------------------------------------------------------------------------------------
By phone:                                                 In person:
- ------------------------------------------------------------------------------------------------
Call Scudder Investor Relations at 1-800-225-2470         Public Reference Room
or                                                        Securities and Exchange Commission,
For existing Scudder investors, call the Scudder          Washington, D.C.
Automated Information Line (SAIL) at                      (Call 1-800-SEC-0330
1-800-343-2890 (24 hours a day).                          for more information).
- ------------------------------------------------------------------------------------------------
By mail:                                                  By internet:
- ------------------------------------------------------------------------------------------------
Scudder Investor Services, Inc.                           http://www.sec.gov
Two International Place Boston, MA 02110-4103             http://www.scudder.com
or
Public Reference Section Securities and Exchange
Commission, Washington, D.C. 20549-6009
(a duplication fee is charged)
- ------------------------------------------------------------------------------------------------
</TABLE>

The Statement of Additional Information is incorporated by reference into this
prospectus (is legally a part of this prospectus).

Investment Company Act file number: 811-642
Printed with SOYINK  Printed on recycled paper

                                       29
<PAGE>

The Securities and Exchange has not approved or disapproved these securities or
passed upon the adequacy of this prospectus. Any representation to the contrary
is a criminal offense.

SCUDDER EMERGING MARKETS GROWTH FUND

PROSPECTUS
MARCH 1, 1999

The fund seeks long-term growth of capital primarily through equity investment
in emerging markets around the globe.

Mutual funds:
o    are not FDIC-insured
o    have no bank guarantees
o    may lose value

- ---------------------
No Sales Charges
- ---------------------
PURE NO-LOAD(TM)
- ---------------------

<PAGE>

CONTENTS

FUND DESCRIPTION...............................................................3
   Investment objective........................................................3
   Investment strategies.......................................................3
   Other investments...........................................................4
   Risk management strategies..................................................4
   Main risks..................................................................4
ABOUT THE FUND.................................................................5
Additional information you should know about the fund
   Past performance............................................................5
   Expense information.........................................................5
   Investment adviser..........................................................7
   Distributions and taxes.....................................................9
   Financial highlights.......................................................10
ABOUT YOUR INVESTMENT.........................................................11
Information about managing your fund account
   Transaction information....................................................11
   Buying and selling shares..................................................13
   Purchases..................................................................13
   Exchanges and redemptions..................................................14
   Investment products and services...........................................15


                                       2
<PAGE>

FUND DESCRIPTION

INVESTMENT OBJECTIVE

The fund seeks long-term growth of capital primarily through equity investments
in emerging markets around the globe. The fund's investment objective and
policies may be changed without a vote of shareholders.

INVESTMENT STRATEGIES

The fund seeks to achieve its investment objective through equity investments in
emerging markets around the globe. At least 65% of the fund's total assets will
be invested in the equity securities of emerging market issuers.

The investment manager 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. Understanding regional themes allows the
investment manager to identify industries and companies it believes most likely
to benefit from the political, social and economic changes taking place in a
given region of the world.

Within a market, the investment manager 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 investment manager seeks to identify companies with favorable
potential for appreciation 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.

The fund considers "emerging markets" to include any country that is defined as
an emerging or developing economy by any of the following: the International
Bank for Reconstruction and Development (i.e., the World Bank), the
International Financial Corporation or the United Nations or its authorities.
The fund deems an issuer to be located in an emerging market if:

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

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

o     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 from subsidiaries) from assets or
      activities located in emerging markets.

The investment manager currently weights its investments toward countries in
Latin America. However, the investment manager may pursue investment
opportunities in


                                       3
<PAGE>

Asia, Africa, the Middle East and the developing countries of Europe, primarily
in Eastern Europe.

OTHER INVESTMENTS

Under normal market conditions, the fund may invest up to 35% of its total
assets in equity securities of issuers in the U.S. and other developed markets.

The fund may invest up to 35% of its total assets in emerging market and
domestic debt securities if the Adviser determines that capital appreciation of
debt securities is likely to equal or exceed the capital appreciation of equity
securities.

RISK MANAGEMENT STRATEGIES

The fund manages its risk by allocating its investment among at least three
countries at all times and does not expect to concentrate in any particular
industry.

The fund may use certain derivatives (investments whose value is based on
indices or other securities).

As a defensive measure, the fund may invest without limit in debt securities, as
well as cash and cash equivalents, including foreign and domestic money market
instruments, short-term government and corporate obligations, and repurchase
agreements. In such a case, the fund would not be pursuing its investment
objective and may not achieve its goals.

MAIN RISKS

The primary factor affecting this fund's performance is stock market movements
in the countries in which the fund is invested. Foreign investments,
particularly investments in emerging markets, carry added risks due to
inadequate or inaccurate financial information about companies, potential
political disturbances and fluctuations in currency exchange rates. In addition,
the investment manager's choice of countries, market sectors or specific
investments may not perform as well as expected, and the fund could underperform
its peers or lose money.

In addition, as a non-diversified investment company, the fund may invest a
greater proportion of its assets in a smaller number of issuers than a
diversified investment company. An investment in the fund may involve greater
risk than an investment in a diversified fund.

The use of certain derivatives could magnify losses.

More information about these and other investments and strategies of the fund is
provided in the Statement of Additional Information. Of course, there can be no
guarantee that, by following these strategies, the fund will achieve its
objective.


                                       4
<PAGE>

ABOUT THE FUND

PAST PERFORMANCE

The chart and table below provide some indication of the risks of investing in
the fund by illustrating how the fund has performed and comparing this
information to a broad measure of market performance. Of course, past
performance is not necessarily an indication of future performance.

Total returns for years ended December 31 [Bar Graphics To Be Inserted]

- ---------------------------
Total
Return:
- ---------------------------
Year:    1996   1997   1998
- ---------------------------

For the period included in the bar chart, the fund's highest return for a
calendar quarter was ______ % (the __ quarter of 19__), and the fund's lowest
return for a calendar quarter was _______% (the __ quarter of 19__).

The fund's year-to-date total return as of [_______] was [______ %].

- --------------------------------------------------------------------------------
Average annual total returns
- --------------------------------------------------------------------------------
For periods ended December      Scudder Emerging Markets    IFC Emerging Markets
   31, 1998                           Growth Fund             Investable Index
- --------------------------------------------------------------------------------
One Year                                 xx.xx%                    xx.xx%
- --------------------------------------------------------------------------------
Five Years                               xx.xx%                    xx.xx%
- --------------------------------------------------------------------------------
Ten Years                                xx.xx%                    xx.xx%
- --------------------------------------------------------------------------------
Since Inception (5/8/96)*                xx.xx%                    xx.xx%
- --------------------------------------------------------------------------------

IFC Emerging Markets Investable Index is an unmanged capitalization weighted
measure of stock markets in emerging market countries worldwide. Index returns
assume reinvestment of dividends and, unlike fund returns, do not reflect any
fees or expenses.

*The fund commenced operations on May 8, 1996. Index comparisons begin May 31,
1996.

FEE AND EXPENSE INFORMATION

Scudder Family of Funds pure no-load(TM) fund

This information is designed to help you understand the costs of investing in
the fund.

- --------------------------------------------------------------------------------
Shareholder Fees:  Fees paid directly from your investment.
- --------------------------------------------------------------------------------
Maximum sales charge (load) imposed on purchases (as % of
offering price)                                                 NONE
- --------------------------------------------------------------------------------
Maximum deferred sales charge (load)                            NONE
- --------------------------------------------------------------------------------
Maximum sales charge (load) imposed on reinvested
dividends/distributions                                         NONE
- --------------------------------------------------------------------------------


                                       5
<PAGE>

- --------------------------------------------------------------------------------
Redemption fee (as % of amount redeemed, if applicable)         2.00%*
- --------------------------------------------------------------------------------
Exchange fee                                                    2.00%*
================================================================================
Annual fund operating expenses (expenses that are deducted from fund assets)
- --------------------------------------------------------------------------------
Management fee                                                  x.xx%
- --------------------------------------------------------------------------------
Distribution (12b-1) fees                                       NONE
- --------------------------------------------------------------------------------
Other expenses                                                  x.xx%
- --------------------------------------------------------------------------------
Total annual fund operating expenses                            x.xx%
- --------------------------------------------------------------------------------

*     There is a 2.00% 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 -- Exchanges or
      Redemptions."

**    Until August 31, 1999, the Adviser and certain of its subsidiaries have
      agreed to waive and/or reimburse 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 2.25% of average daily net assets. Because the
      Adviser and its subsidiaries had agreed to waive all or portions of their
      fees, annualized fund expenses were: investment management fee ___%, other
      expenses ____% and total operating expenses 2.25% for the fiscal period
      ended October 31, 1998. The information contained in the above table and
      the example below reflects the expenses of the fund without taking into
      account any applicable fee waivers and/or reimbursements.

Example

This example is to help you compare the cost of investing in the fund with the
cost of investing in other mutual funds.

This example illustrates the impact of the above fees and expenses on an account
with an initial investment of $10,000, based on the expenses shown above. It
assumes a 5% annual return, the reinvestment of all dividends and distributions
and "annual fund operating expenses" remaining the same each year. The expenses
would be the same whether you sold your shares at the end of each period or
continued to hold them.

- --------------------------------------------------------------------------------
One Year                                   $___
- --------------------------------------------------------------------------------
Three Years                                $___
- --------------------------------------------------------------------------------
Five Years                                 $___
- --------------------------------------------------------------------------------
Ten Years                                  $___
- --------------------------------------------------------------------------------

Actual fund expenses and return vary from year to year, and may be higher or
lower than those shown.


                                       6
<PAGE>

A MESSAGE FROM THE PRESIDENT

Scudder Kemper Investments, Inc., investment adviser to the Scudder Family of
Funds, is one of the largest and most experienced investment management
organizations worldwide. We manage more than $230 billion in assets globally for
mutual fund investors, retirement and pension plans, institutional and corporate
clients, and private family and individual accounts.

We offered America's first no-load mutual fund in 1928, and today the Scudder
Family of Funds includes over 50 no-load mutual fund portfolios or classes of
shares. We also manage 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 numerous other open- and closed-end funds that invest in this
country and other 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: IRAs, 401(k)s,
Keoghs and other retirement plans are also available.

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

The Scudder Family of Funds is offered without charges to purchase or redeem
shares or to exchange from one fund to another. There are no distribution
(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.

INVESTMENT ADVISER

The fund retains the investment management firm of Scudder Kemper Investments,
Inc. (the "Adviser"), 345 Park Avenue, New York, NY, to manage the fund's daily
investment and business affairs subject to the policies established by the
fund's Board of Directors. The Adviser actively manages the fund's investments.
Professional management can be an important advantage for investors who do not
have the time or expertise to invest directly in individual securities.

The fund pays the Adviser an annual fee of 1.25% of the fund's average daily net
assets.

The Adviser agreed to maintain the annualized expenses of the fund at no more
than 2.25% of the average daily net assets of the fund until August 31, 1999. As
a result of this waiver, the fund's investment manager received an investment
management fee of


                                       7
<PAGE>

_____% of the fund's average daily net assets for the fiscal year ended October
31, 1998.

The fee is higher than that charged by many funds which invest primarily in U.S.
securities but not necessarily higher than the fees charged by funds with
similar investment objectives

PORTFOLIO MANAGEMENT

The fund is managed by a team of 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's portfolio.
They are supported by the Adviser's large staff of economists, research
analysts, traders and other investment specialists who work in the Adviser's
offices across the United States and abroad. The Adviser believes its team
approach benefits fund investors by bringing together many disciplines and
leveraging its extensive resources.

The following investment professionals are associated with the fund as
indicated:

- --------------------------------------------------------------------------------
Name and Title          Joined the Fund  Responsibilities and Background
- --------------------------------------------------------------------------------
Joyce E. Cornell        1993             Joined Scudder Kemper Investments in
Lead Portfolio Manager                   1991.  She began her investment career
                                         in _______.
- --------------------------------------------------------------------------------
Andre J. DeSimone       1997             Joined Scudder Kemper Investments in
Portfolio Manager                        1997 after three years as Chief
                                         Executive Officer of a stock brokerage
                                         company in Kenya.  Mr. DeSimone also
                                         has six years of experience in
                                         investment banking.
- --------------------------------------------------------------------------------
Tara C. Kenney          1996             Joined Scudder Kemper Investments in
Portfolio Manager                        1995. Ms. Kenney has over ten years of
                                         financial industry experience.  Ms.
                                         Kenney was a vice president of
                                         corporate finance for an investment
                                         banking firm for seven years, and most
                                         recently, a portfolio manager for three
                                         years.
- --------------------------------------------------------------------------------
Elizabeth J. Allan      19__             Joined Scudder Kemper Investments in
Portfolio Manager                        1987 as a member of the portfolio
                                         management team of a closed-end mutual
                                         fund concentrating its investments in
                                         Asia.
- --------------------------------------------------------------------------------

YEAR 2000 READINESS

Like other mutual funds and financial and business organizations worldwide, the
fund could be adversely affected if computer systems on which the fund relies,
which primarily include those used by the Adviser, its affiliates or other
service providers, are unable to correctly process date-related information on
and after January 1, 2000. The risk is commonly called the Year 2000 issue.
Failure to successfully address the


                                       8
<PAGE>

Year 2000 issue could result in interruptions to and other material adverse
effects on the fund's business and operations, such as problems with calculating
net asset value and difficulties in implementing the fund's purchase and
redemption procedures. The Adviser has commenced a review of the Year 2000 issue
as it may affect the funds and is taking steps it believes are reasonably
designed to address the Year 2000 issue, although there can be no assurances
that these steps will be sufficient. In addition, there can be no assurances
that the Year 2000 issue will not have an adverse effect on the issuers whose
securities are held by the fund or on global markets or economies generally.

EURO CONVERSION

The planned introduction of a new European currency, the Euro, may result in
uncertainties for European securities in the markets in which they trade and
with respect to the operation of the fund's portfolio. Currently, the Euro is
expected to be introduced on January 1, 1999 by eleven European countries that
are members of the European Economic and Monetary Union (EMU). The introduction
of the Euro will require the redenomination of European debt and equity
securities over a period of time, which may result in various accounting
differences and/or tax treatments that otherwise would not likely occur.
Additional questions are raised by the fact that certain other EMU members,
including the United Kingdom, will not officially be implementing the Euro on
January 1, 1999. If the introduction of the Euro does not take place as planned,
there could be negative effects, such as severe currency fluctuations and market
disruptions.

The Adviser is actively working to address Euro-related issues and understands
that other key service providers are taking similar steps. At this time,
however, no one knows precisely what the degree of impact will be. To the extent
that the market impact or effect on the fund's portfolio holdings is negative,
it could hurt the fund's performance.

DISTRIBUTIONS AND TAXES

Dividends and capital gains distributions

The fund intends to distribute dividends from its net investment income and net
realized capital gains after utilization of capital loss carryforwards, if any,
annually, in December. An additional distribution may be made, if necessary.

Any dividends or capital gains distributions declared in October, November or
December with a record date in such month and paid during the following January
will be treated by shareholders for federal income tax purposes as if received
on December 31 of the calendar year declared.


                                       9
<PAGE>

A shareholder may choose to receive distributions in cash or have them
reinvested in additional shares of a fund. 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. Distributions are generally taxable,
whether received in cash or reinvested. Exchanges among funds are also taxable
events.

TAXES

Generally, dividends from net investment income are taxable to shareholders as
ordinary income. Long-term capital gains distributions, if any, are taxable to
shareholders as long-term capital gains, regardless of the length of time
shareholders have owned shares. Short-term capital gains and any other taxable
income distributions are taxable as ordinary income. A portion of dividends from
ordinary income may qualify for the dividend-received deduction for
corporations.

Unless your investment is in a tax-deferred account, you may want to avoid
investing a large amount close to the date of a distribution because you may
receive part of your investment back as a taxable distribution.

A sale or exchange of shares is a taxable event and may result in a capital gain
or loss which may be long-term or short-term, generally depending on how long
you owned the shares.

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

The fund may be required to withhold U.S. federal income tax at the rate of 31%
of all taxable distributions payable to shareholders who fail to provide the
fund with their correct taxpayer identification number, or who have been
notified by the IRS that they are subject to backup withholding. Any such
withheld amounts may be credited against the shareholder's U.S. federal income
tax liability.

Shareholders may be subject to state, local and foreign taxes on fund
distributions and dispositions of fund shares. You should consult you tax
advisor regarding the particular consequences of an investment in the fund.

FINANCIAL HIGHLIGHTS

The financial highlights table is intended to help you understand the fund's
financial performance for the fiscal periods indicated. Certain information
reflects financial results for a single fund share. The total return figures
represent the rate that an investor would have earned (or lost) on an investment
in the fund assuming reinvestment of all dividends and distributions. This
information has been audited by PricewaterhouseCoopers LLP whose report, along
with the fund's financial statements, is included in the annual report, which is
available upon request by calling


                                       10
<PAGE>

Scudder Investor Relations at 1-800-225-2470 or, for existing investors, call
the Scudder Automated Information Line (SAIL) at 1-800-343-2890.

                                 [TO BE UPDATED]

ABOUT YOUR INVESTMENT

TRANSACTION INFORMATION

Share price

Scudder Fund Accounting Corporation determines the net asset value per share of
the fund as of the close of regular trading on the New York Stock Exchange
(NYSE), normally 4 p.m. eastern time, on each day the NYSE 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. Market
prices are used to determine the value of the fund's assets, but when no
reliable market quotations are available, the fund may use valuation procedures
established by its Board.

To the extent that the fund invests in foreign securities, these securities may
be listed on foreign exchanges that trade on days when the fund does not price
its shares. As a result, the net asset value per share of the fund may change at
a time when shareholders are not able to purchase or redeem their shares.

Redemption fee

Upon the redemption or exchange of shares held less than one year, 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. The fee is waived for
all shares purchased through certain Scudder 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 waiver does not apply to any IRA or SEP-IRA accounts. The fund
reserves the right to modify the terms of or terminate this fee at any time.

The fee applies to redemptions from the fund 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.


                                       11
<PAGE>

Processing time

All purchase and redemption requests received in good order by the fund's
transfer agent by the close of regular trading on the NYSE are executed at the
net asset value per share calculated at the close of trading that day. All other
requests that are in good order will be executed the following business day.

Signature guarantees

A signature guarantee is required when you sell more than $100,000 worth of
shares. You can obtain one from most brokerage houses and financial
institutions, although not from a notary public. The fund will normally send you
the proceeds within one business day following your request, but may take up to
seven business days (or longer in the case of shares recently purchased by
check).

Purchase restrictions

Purchases and sales should be made for long-term investment purposes only. The
fund and Scudder Investor Services, Inc. each reserves the right to reject
purchases of fund shares (including exchanges) for any reason including when
there is evidence of a pattern of frequent purchases and sales made in response
to short-term fluctuations in the fund's share price.

Minimum balances

Generally, shareholders who maintain a non-fiduciary account balance of less
than $2,500 in the fund and have not established an automatic investment plan
will be assessed, an annual $10.00 per fund charge; this fee is paid to the
fund. The fund reserves the right, following 60 days written notice to
shareholders, to redeem all shares in accounts that have a value below $1,000
where such a reduction in value has occurred due to a redemption, exchange or
transfer out of the account.

Third party transactions

If you buy and sell shares of the fund through a member of the National
Association of Securities Dealers, Inc. (other than Scudder Investor Services,
Inc.), that member may charge a fee for that service.

Redemption-in-kind

The fund reserves the right to honor any request for redemption or repurchase by
making payment in whole or in part in readily marketable securities ("redemption
in kind") if the amount of such a request is large enough to affect operations
(for example, the request is greater than $250,000 or 1% of the fund's assets).
These securities will be chosen by the fund and valued as they are for purposes
of computing the fund's net asset value. A shareholder may incur transaction
expenses in converting these securities to cash.


                                       12
<PAGE>

BUYING AND SELLING SHARES

Please refer to the following charts for information on how to buy and sell fund
shares. Additional information, including special investment features, may be
found in the Shareholder Services Guide. For information about No-Fee IRAs, Roth
IRAs and other retirement options, call Scudder Investor Relations at
1-800-225-2470. For information on establishing 401(k) and 403(b) plans, call
Scudder Defined Contribution Services at 1-800-323-6105.

PURCHASES

To open an account

The minimum initial investment is $2,500; $1,000 for IRAs. Group retirement
plans (401(k), 403(b), etc.) have similar or lower minimums -- see appropriate
plan literature. Make checks payable to "The Scudder Funds."

- --------------------------------------------------------------------------------
By Mail         Send your completed and signed application and check
                  by regular mail to:       or by express, registered, or
                  The Scudder Funds         certified mail to:
                  P.O. Box 2291             The Scudder Funds
                  Boston, MA                66 Brooks Drive
                  02107-2291                Braintree, MA  02184
- --------------------------------------------------------------------------------
By Wire         Call 1-800-225-5163 for instructions.
- --------------------------------------------------------------------------------
In Person       Visit one of our Investor Centers to complete your application
                with the help of a Scudder representative. Investor Centers are
                located in Boca Raton, Boston, Chicago, New York and San
                Francisco.
- --------------------------------------------------------------------------------

To buy additional shares

The minimum additional investment is $100; $50 for IRAs. Group retirement plans
(401(k), 403(b), etc.) have similar or lower minimums -- see appropriate plan
literature. Make checks payable to "The Scudder Funds."

- --------------------------------------------------------------------------------
By Mail           Send a check with a Scudder investment slip, or with a letter
                  of instruction including your account number and the complete
                  fund name, to the appropriate address listed above.
- --------------------------------------------------------------------------------
By Wire           Call 1-800-225-5163 for instructions.
- --------------------------------------------------------------------------------
In Person         Visit one of our Investor Centers to make an additional
                  investment in your Scudder fund account. Investor Center
                  locations are listed above.
- --------------------------------------------------------------------------------
By Phone          Call 1-800-225-5163 for instructions.
- --------------------------------------------------------------------------------
By Automatic      You may arrange to make investments of $50 or more on a
Investment Plan   regular basis through automatic deductions from your bank
                  checking account. Please call 1-800-225-5163 for more
                  information and an enrollment form.
- --------------------------------------------------------------------------------


                                       13
<PAGE>

EXCHANGES AND REDEMPTIONS

To exchange shares

The minimum investments are $2,500 to establish a new account and $100 to
exchange among existing accounts.

- --------------------------------------------------------------------------------
By Telephone      To speak with a service representative, call 1-800-225-5163
                  from 8 a.m. to 8 p.m. eastern time. To access SAIL(TM), The
                  Scudder Automated Information Line, call 1-800-343-2890 (24
                  hours a day).
- --------------------------------------------------------------------------------
By Mail or Fax    Print or type your instructions and include:
                  - the name of the fund and the account number you are
                    exchanging from;
                  - your name(s) and address as they appear on your account;
                  - the dollar amount or number of shares you wish to exchange;
                  - the name of the fund you are exchanging into;
                  - your signature(s) as it appears on your account; and
                  - a daytime telephone number.
                  Send your instructions   or by express,         or by fax to:
                  by regular mail to:      registered, or
                  The Scudder Funds        certified mail to:
                  P.O. Box 2291            The Scudder Funds      1-800-821-6234
                  Boston, MA 02107-2291    66 Brooks Drive
                                           Braintree, MA  02184
- --------------------------------------------------------------------------------

To sell shares

- --------------------------------------------------------------------------------
By Telephone        To speak with a service representative, call 1-800-225-5163
                    from 8 a.m. to 8 p.m. eastern time. To access SAIL(TM), The
                    Scudder 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
                    $100,000 sent to your address of record.
- --------------------------------------------------------------------------------
By Mail or Fax      Send your instructions for redemption to the appropriate
                    address or fax number above and include:
                    - the name of the fund and account number you are redeeming
                      from;
                    - your name(s) and address as they appear on your account;
                    - the dollar amount or number of shares you wish to redeem;
                    - your signature(s) as it appears on your account; and
                    - a daytime telephone number.
- --------------------------------------------------------------------------------
By Automatic        You may arrange to receive automatic cash payments
Withdrawal Plan     periodically. Call 1-800-225-5163 for more information and
                    an enrollment form.
- --------------------------------------------------------------------------------


                                       14
<PAGE>

INVESTMENT PRODUCTS AND SERVICES

The Scudder Family of Funds(+)

Money Market
- ------------
Scudder U.S. Treasury Money Fund
Scudder Cash Investment Trust
Scudder Money Market Series --
  Prime Reserve Shares*
  Premium Shares*
  Managed Shares*
Scudder Government Money Market
  Series -- Managed Shares*

Tax Free Money Market+
- ----------------------
Scudder Tax Free Money Fund
Scudder Tax Free  Money Market Series --
  Managed Shares*
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 Zero Coupon 2000 Fund
Scudder GNMA Fund
Scudder Income Fund
Scudder Corporate Bond 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 Dividend & Growth Fund
Scudder Growth and Income Fund
Scudder S&P 500 Index Fund
Scudder Real Estate Investment Fund

U.S. Growth
- -----------
Value
  Scudder Large Company Value Fund
  Scudder Value Fund***
  Scudder Small Company Value Fund
  Scudder Micro Cap Fund
Growth
  Scudder Classic Growth Fund***
  Scudder Large Company Growth Fund
  Scudder Development Fund
  Scudder 21st Century Growth Fund

Global Equity
- -------------
Worldwide
  Scudder Global Fund
  Scudder International Value Fund
  Scudder International Growth and Income Fund
  Scudder International Fund++
  Scudder International Growth Fund
  Scudder Global Discovery Fund***
  Scudder Emerging Markets Growth Fund
  Scudder Gold Fund
Regional
  Scudder Greater Europe Growth Fund
  Scudder Pacific Opportunities Fund
  Scudder Latin America Fund
  The Japan Fund, Inc.

Industry Sector Funds
- ---------------------
Choice Series
  Scudder Financial Services Fund
  Scudder Health Care Fund
  Scudder Technology Fund

Preferred Series
- ----------------
Scudder Tax Managed Growth Fund
Scudder Tax Managed Small Company Fund


                                       15
<PAGE>

Retirement Programs and Education accounts
Traditional IRA
Roth IRA
SEP-IRA
Keogh Plan
401(k), 403(b) Plans
Scudder Horizon Plan **(++)(a variable annuity)
Education IRA
UGMA/UTMA

Closed-end funds#
The Argentina Fund, Inc.
The Brazil Fund, Inc.
The Korea Fund, Inc.
Montgomery Street Income Securities, Inc.
Scudder Global High Income Fund, Inc.
Scudder New Asia Fund, Inc.
Scudder New Europe 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 in order from
expected least risk to most risk. Certain Scudder funds or classes thereof may
not be available for purchase or exchange. +A portion of the income from the
tax-free funds may be subject to federal, state, and local taxes. *A class of
shares of the fund. **Not available in all states. ***Only the Scudder Shares of
the fund are part of the Scudder Family of Funds. ++Only the International
Shares of the fund are part of the Scudder Family of Funds. (++)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 Kemper Investments, Inc., are traded on the New
York Stock Exchange and, in some cases, on various foreign stock exchanges.


                                       16
<PAGE>

Additional information about the fund may be found in the Statement of
Additional Information, the Shareholder Service Guide and in shareholder
reports. The Statement of Additional Information contains more information on
fund investments and operations. The Shareholder Service Guide contains more
information about purchases and sales of fund shares. The semiannual and annual
shareholder reports contain a discussion of the market conditions and the
investment strategies that significantly affected the fund's performance during
the last fiscal year, as well as a listing of portfolio holdings and financial
statements. These and other fund documents may be obtained without charge from
the following sources:

- --------------------------------------------------------------------------------
By phone:                                   In person:
- --------------------------------------------------------------------------------
Call Scudder Investor Relations at          Public Reference Room
1-800-225-2470                              Securities and Exchange Commission,
or                                          Washington, D.C.
For existing Scudder investors, call        (Call 1-800-SEC-0330
the Scudder Automated Information Line      for more information).
(SAIL) at 1-800-343-2890 (24 hours a
day).
- --------------------------------------------------------------------------------
By mail:                                    By internet:
- --------------------------------------------------------------------------------
Scudder Investor Services, Inc.             http://www.sec.gov
Two International Place Boston, MA          http://www.scudder.com
02110-4103
or
Public Reference Section Securities
and Exchange Commission, Washington,
D.C. 20549-6009
(a duplication fee is charged)
- --------------------------------------------------------------------------------

The Statement of Additional Information is incorporated by reference into this
prospectus (is legally a part of this prospectus).

Investment Company Act file number: 811-642
Printed with SOYINK     Printed on recycled paper

                                       17
<PAGE>

                           SCUDDER LATIN AMERICA FUND

   
            A Pure No-Load(TM) (No Sales Charges) Mutual Fund Seeking
                Long-Term Capital Appreciation through Investment
              Primarily in the Securities of Latin American Issuers
    

                                       and

                       SCUDDER PACIFIC OPPORTUNITIES FUND

   
            A Pure No-Load(TM) (No Sales Charges) Mutual Fund Seeking
                 Long-Term Growth of Capital through Investment
                      Primarily in the Equity Securities of
                    Pacific Basin Companies, excluding Japan
    

                                       and

                       SCUDDER GREATER EUROPE GROWTH FUND

   
            A Pure No-Load(TM) (No Sales Charges) Mutual Fund Seeking
            Long-Term Growth of Capital through Investments Primarily
                 in the Equity Securities of European Companies
    

                                       and

                      SCUDDER EMERGING MARKETS GROWTH FUND

   
                A Pure No-Load(TM) (No Sales Charges) Mutual Fund
               which Seeks to Provide Long-Term Growth of Capital
                       Primarily through Equity Investment
                      in Emerging Markets Around the Globe
    

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                       STATEMENT OF ADDITIONAL INFORMATION

   
                                  March 1, 1999
    

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      This combined Statement of Additional Information is not a prospectus and
should be read in conjunction with the prospectuses of Scudder Latin America
Fund, Scudder Pacific Opportunities Fund, Scudder Greater Europe Growth Fund and
Scudder Emerging Markets Growth Fund dated March 1, 1999, as amended from time
to time, copies of which may be obtained without charge by writing to Scudder
Investor Services, Inc., Two International Place, Boston, Massachusetts
02110-4103.
    
<PAGE>

                                TABLE OF CONTENTS
                                                                            Page

THE FUNDS' INVESTMENT OBJECTIVES AND POLICIES..................................1
      General Investment Objective and Policies of Scudder Latin America Fund..1
      Special Considerations...................................................3
      General Investment Objective and Policies of Scudder Pacific
         Opportunities Fund....................................................4
      Special Considerations...................................................6
      General Investment Objective and Policies of Scudder Greater
         Europe Growth Fund....................................................6
      Special Considerations...................................................8
      General Investment Objectives and Policies of Scudder Emerging
         Markets Growth Fund..................................................10
      Special Considerations..................................................11
      Investing in Foreign Securities.........................................15
      Specialized Investment Techniques.......................................16
      Master/feeder structure.................................................28
      Investment Restrictions.................................................28

   
PURCHASES.....................................................................30
    

EXCHANGES AND REDEMPTIONS.....................................................33
      Exchanges...............................................................33
      Special Redemption and Exchange Information for Scudder Emerging
         Markets Growth Fund..................................................34
      Redemption by Telephone.................................................35
      Redemption by QuickSell.................................................35
      Redemption by Mail or Fax...............................................36
      Redemption-in-Kind......................................................36
      Other Information.......................................................36

FEATURES AND SERVICES OFFERED BY THE FUNDS....................................37
      The Pure No-Load(TM) Concept............................................37
      Internet access.........................................................38
      Dividend and Capital Gain Distribution Options..........................39
      Scudder Investor Centers................................................39
      Reports to Shareholders.................................................39
      Transaction Summaries...................................................39

THE SCUDDER FAMILY OF FUNDS...................................................40

SPECIAL PLAN ACCOUNTS.........................................................45
      Scudder Retirement Plans:  Profit-Sharing and Money Purchase
         Pension Plans for Corporations and Self-Employed Individuals.........45
      Scudder 401(k): Cash or Deferred Profit-Sharing Plan for
         Corporations and Self-Employed Individuals...........................45
      Scudder IRA: Individual Retirement Account..............................45
      Scudder 403(b) Plan.....................................................46
      Scudder Roth IRA:  Individual Retirement Account........................46
      Automatic Withdrawal Plan...............................................47
      Group or Salary Deduction Plan..........................................47
      Automatic Investment Plan...............................................48
      Uniform Transfers/Gifts to Minors Act...................................48
      Automatic Investment Plan...............................................48
      Uniform Transfers/Gifts to Minors Act...................................48

DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS.....................................49

PERFORMANCE INFORMATION.......................................................49
      Average Annual Total Return.............................................49


                                        i
<PAGE>

                          TABLE OF CONTENTS (continued)
                                                                            Page

   
      Cumulative Total Return.................................................50
      Total Return............................................................51
      Comparison of Portfolio Performance.....................................51
    

ORGANIZATION OF THE FUNDS.....................................................56

INVESTMENT ADVISER............................................................57
      Personal Investments by Employees of the Adviser........................61

DIRECTORS AND OFFICERS........................................................61

REMUNERATION..................................................................64
      Responsibilities of the Board--Board and Committee Meetings.............64
      Compensation of Officers and Directors..................................65

   
DISTRIBUTOR...................................................................66
    

TAXES.........................................................................67

PORTFOLIO TRANSACTIONS........................................................71
      Brokerage Commissions...................................................71
      Portfolio Turnover......................................................72

NET ASSET VALUE...............................................................73

ADDITIONAL INFORMATION........................................................73
      Experts.................................................................73
      Other Information.......................................................74

FINANCIAL STATEMENTS..........................................................75
      Latin America Fund......................................................75
      Pacific Opportunities Fund..............................................75
      Greater Europe Growth Fund..............................................75
      Emerging Markets Growth Fund............................................75

APPENDIX


                                       ii
<PAGE>

                  THE FUNDS' INVESTMENT OBJECTIVES AND POLICIES

      (See "Investment objective and policies" in the Funds' prospectuses.)

      Scudder Latin America Fund, Scudder Pacific Opportunities Fund, Scudder
Greater Europe Growth Fund and Scudder Emerging Markets Growth Fund (each a
"Fund," collectively, the "Funds"), are each series of Scudder International
Fund, Inc. (the "Corporation"), a pure no-load(TM), non-diversified, open-end
management investment company which continuously offers and redeems its shares
at net asset value. They are companies of the type commonly known as mutual
funds.

General Investment Objective and Policies of Scudder Latin America Fund

      Scudder Latin America Fund's ("Latin America Fund") investment objective
is to seek 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
investment adviser, Scudder Kemper Investments, Inc. (the "Adviser"), 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.

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

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:
    

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

   
      o     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;

      o     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

      o     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, Colombia, Mexico and Peru. In the opinion of the Adviser, these
six 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.
    
<PAGE>

   
      The Fund's equity investments are common stock, preferred stock (either
convertible or non-convertible), depositary receipts and warrants. These may be
illiquid 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 the Adviser 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 Investors Service,
Inc. ("Moody's") or below BBB by Standard & Poor's Corporation ("S&P"). For more
information about the debt securities in which the Fund may invest, including
risks, please see "Specialized Investment Techniques."

      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. 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 without limit in cash or cash equivalents 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. It is impossible to
accurately predict how long such alternative strategies may be utilized. 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, illiquid and
restricted securities, repurchase agreements, reverse repurchase agreements and
may engage in strategic transactions, including derivatives.
    

      Under exceptional economic or market conditions abroad, the Fund may, for
temporary defensive purposes, until normal conditions return, invest all or a
major 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 such countries.

      Foreign securities such as those purchased by the Fund may be subject to
foreign government taxes which could reduce the yield on such securities,
although a shareholder of the Fund may, subject to certain limitations, be
entitled to claim a credit or deduction for U.S. federal income tax purposes for
his or her proportionate share of such foreign taxes paid by the Fund. (See
"TAXES.")


                                       2
<PAGE>

   
      From time to time, the Fund may be a purchaser of illiquid debt or equity
securities (i.e., securities which may require registration under the Securities
Act of 1933, or an exemption therefrom, in order to be sold in the ordinary
course of business) in a private placement. The Fund has undertaken not to
purchase or acquire any such securities if, solely as a result of such purchase
or acquisition, more than 15% of the value of the Fund's net assets would be
invested in such illiquid securities.
    

Special Considerations

Investing in Latin America. Investing in securities of Latin American issuers
may entail risks relating to the potential political and economic instability of
certain Latin American countries and the risks of expropriation,
nationalization, confiscation or the imposition of restrictions on foreign
investment and on repatriation of capital invested. In the event of
expropriation, nationalization or other confiscation by any country, the Fund
could lose its entire investment in any such country.

      The securities markets of Latin American countries are substantially
smaller, less developed, less liquid and more volatile than the major securities
markets in the U.S. Disclosure and regulatory standards are in many respects
less stringent than U.S. standards. Furthermore, there is a lower level of
monitoring and regulation of the markets and the activities of investors in such
markets.

   
      The limited size of many Latin American securities markets and limited
trading volume in the securities of Latin American issuers compared to the
volume of trading in the securities of U.S. issuers could cause prices to be
erratic for reasons apart from factors that affect the soundness and
competitiveness of the securities issuers. For example, limited market size may
cause prices to be unduly influenced by traders who control large positions.
Adverse publicity and investors' perceptions, whether or not based on in-depth
fundamental analysis, may decrease the value and liquidity of portfolio
securities.
    

      The Fund invests in securities denominated in currencies of Latin American
countries. Accordingly, 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 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, certain Latin American currencies may
not be internationally traded. Certain of these currencies have experienced a
steep devaluation relative to the U.S. dollar. Any devaluations in the
currencies in which the Fund's portfolio securities are denominated may have a
detrimental impact on the Fund's net asset value.

      The economies of individual Latin American countries may differ favorably
or unfavorably from the U.S. economy in such respects as the rate of growth of
gross domestic product, the rate of inflation, capital reinvestment, resource
self-sufficiency and balance of payments position. Certain Latin American
countries have experienced high levels of inflation which can have a
debilitating effect on an economy. Furthermore, certain Latin American countries
may impose withholding taxes on dividends payable to the Fund at a higher rate
than those imposed by other foreign countries. This may reduce the Fund's
investment income available for distribution to shareholders.

      Certain Latin American countries such as Argentina, Brazil and Mexico are
among the world's largest debtors to commercial banks and foreign governments.
At times, certain Latin American countries have declared moratoria on the
payment of principal and/or interest on outstanding debt. Investment in
sovereign debt can involve a high degree of risk. The governmental entity that
controls the repayment of sovereign debt may not be able or willing to repay the
principal and/or interest when due in accordance with the terms of such debt. A
governmental entity's willingness or ability to repay principal and interest due
in a timely manner may be affected by, among other factors, its cash flow
situation, the extent of its foreign reserves, the availability of sufficient
foreign exchange on the date a payment is due, the relative size of the debt
service burden to the economy as a whole, the governmental entity's policy
towards the International Monetary Fund, and the political constraints to which
a governmental entity may be subject. Governmental entities may also be
dependent on expected disbursements from foreign governments, multilateral
agencies and


                                       3
<PAGE>

others abroad to reduce principal and interest arrearages on their debt. The
commitment on the part of these governments, agencies and others to make such
disbursements may be conditioned on a governmental entity's implementation of
economic reforms and/or economic performance and the timely service of such
debtor's obligations. Failure to implement such reforms, achieve such levels of
economic performance or repay principal or interest when due may result in the
cancellation of such third parties' commitments to lend funds to the
governmental entity, which may further impair such debtor's ability or
willingness to service its debts in a timely manner. Consequently, governmental
entities may default on their sovereign debt.

      Holders of sovereign debt, including the Fund, 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 defaulted
sovereign debt may be collected in whole or in part.

      Latin America is a region rich in natural resources such as oil, copper,
tin, silver, iron ore, forestry, fishing, livestock and agriculture. The region
has a large population (roughly 300 million) representing a large domestic
market. Economic growth was strong in the 1960's and 1970's, but slowed
dramatically (and in some instances was negative) in the 1980's as a result of
poor economic policies, higher international interest rates, and the denial of
access to new foreign capital. Although a number of Latin American countries are
currently experiencing lower rates of inflation and higher rates of real growth
in gross domestic product than they have in the past, other Latin American
countries continue to experience significant problems, including high inflation
rates and high interest rates. Capital flight has proven a persistent problem
and external debt has been forcibly rescheduled. Political turmoil, high
inflation, capital repatriation restrictions, and nationalization have further
exacerbated conditions.

      Governments of many Latin American countries have exercised and continue
to exercise substantial influence over many aspects of the private sector
through the ownership or control of many companies, including some of the
largest in those countries. As a result, government actions in the future could
have a significant effect on economic conditions, which may adversely affect
prices of certain portfolio securities. Expropriation, confiscatory taxation,
nationalization, political, economic or social instability or other similar
developments, such as military coups, have occurred in the past and could also
adversely affect the Fund's investments in this region.

      Changes in political leadership, the implementation of market oriented
economic policies, such as the North American Free Trade Agreement ("NAFTA"),
privatization, trade reform and fiscal and monetary reform are among the recent
steps taken to renew economic growth. External debt is being restructured and
flight capital (domestic capital that has left home country) has begun to
return. Inflation control efforts have also been implemented. Latin American
equity markets can be extremely volatile and in the past have shown little
correlation with the U.S. market. Currencies are typically weak, but most are
now relatively free floating, and it is not unusual for the currencies to
undergo wide fluctuations in value over short periods of time due to changes in
the market.

      The Fund is intended to provide individual and institutional investors
with an opportunity to invest a portion of their assets in a broad range of
securities of Latin American issuers. Management of the Fund believes that
allocation of assets on an international basis decreases the degree to which
events in any one country, including the United States, will affect an
investor's entire investment holdings. In certain periods since World War II,
many leading foreign economies and foreign stock market indices have grown more
rapidly than the United States economy and leading U.S. stock market indices,
although there can be no assurance that this will be true in the future. Because
of the Fund's investment policy, it is not intended to provide a complete
investment program for an investor.

General Investment Objective and Policies of Scudder Pacific Opportunities Fund

      Scudder Pacific Opportunities Fund's ("Pacific Opportunities Fund")
investment objective is to seek 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.


                                       4
<PAGE>

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

      The Fund invests, under normal market conditions, at least 65% of its
total 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 .
    

      The Fund defines securities of Pacific Basin companies as follows:

      o     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

   
      o     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
illiquid 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,
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,
illiquid and restricted securities, reverse repurchase agreements and may engage
in strategic transactions, including derivatives. 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. It is impossible to accurately predict how long such alternative
strategies may be utilized.
    

      Foreign securities such as those purchased by the Fund may be subject to
foreign government taxes which could reduce the yield on such securities,
although a shareholder of the Fund may, subject to certain limitations, be
entitled to claim a credit or deduction for U.S. federal income tax purposes for
his or her proportionate share of such foreign taxes paid by the Fund. (See
"TAXES.")

Special Considerations

Investing in the Pacific Basin. Economies of individual Pacific Basin countries
may differ favorably or unfavorably from the U.S. economy in such respects as
growth of gross national product, rate of inflation, capital reinvestment,
resource self-sufficiency, interest rate levels, and balance of payments
position. Of particular importance, most of the economies in this region of the
world are heavily dependent upon exports, particularly to developed countries,
and, accordingly, have been and may continue to be adversely affected by trade
barriers, managed adjustments in relative


                                       5
<PAGE>

currency values, and other protectionist measures imposed or negotiated by the
U.S. and other countries with which they trade. These economies also have been
and may continue to be negatively impacted by economic conditions in the U.S.
and other trading partners, which can lower the demand for goods produced in the
Pacific Basin.

      With respect to the Peoples Republic of China and other markets in which
the Fund may participate, there is the possibility of nationalization,
expropriation or confiscatory taxation, political changes, government
regulation, social instability or diplomatic developments that could adversely
impact a Pacific Basin country or the Fund's investment in that country.

   
      Trading volume on Pacific Basin stock exchanges outside of Japan, although
increasing, is substantially less than in the U.S. stock market. Further
securities of some Pacific Basin companies are less liquid and more volatile
than securities of comparable U.S. companies. Fixed commissions on Pacific Basin
stock exchanges are generally higher than negotiated commissions on U.S.
exchanges, although the Fund endeavors to achieve the most favorable net results
on its portfolio transactions and may be able to purchase securities in which
the Fund may invest on other stock exchanges where commissions are negotiable.
    

      Foreign companies, including Pacific Basin companies, are not generally
subject to uniform accounting, auditing and financial reporting standards,
practices and disclosure requirements comparable to those applicable to U.S.
companies. Consequently, there may be less publicly available information about
such companies than about U.S. companies. Moreover, there is generally less
government supervision and regulation of Pacific Basin stock exchanges, brokers,
and listed companies than in the U.S.

      These considerations generally are more of a concern in developing
countries. For example, the possibility of revolution and the dependence on
foreign economic assistance may be greater in these countries than in developed
countries. The management of the Fund seeks to mitigate the risks associated
with the foregoing considerations through continuous professional management.

   
      Recent conditions in the Pacific Basin region include political
uncertainty, economic overheating, erratic trade policies and extreme currency
fluctuations that have resulted in equity market decline. The conditions that
have given rise to these developments, however, are changeable, and there is no
way to predict if they will continue or the speed at which the economies of that
region will recover.
    

General Investment Objective and Policies of Scudder Greater Europe Growth
FundGeneral Investment Objective and Policies of Scudder Greater Europe Growth
Fund

      Scudder Greater Europe Growth Fund's ("Greater Europe Growth Fund")
investment objective is to seek long-term growth of capital through investments
primarily in the equity securities of European companies. Although its 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.

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


                                       6
<PAGE>

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

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

      o     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 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 Adviser.

      The Fund intends to allocate its investments among at least three
countries at all times . The Fund's equity investments are common stock,
preferred stock (convertible or non-convertible), depositary receipts (sponsored
or unsponsored) and warrants. These may be illiquid 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, including derivatives.

      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 invest
in 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. Such securities may be in default with
respect to payment of principal or interest. See "Risk factors -- Debt
securities."

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

      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. It is impossible to
accurately predict how long such alternative strategies may be utilized.
    

      Foreign securities such as those purchased by the Fund may be subject to
foreign government taxes which could reduce the yield on such securities,
although a shareholder of the Fund may, subject to certain limitations, be
entitled to claim a credit or deduction for U.S. federal income tax purposes for
his or her proportionate share of such foreign taxes paid by the Fund. (See
"TAXES.")

   
      From time to time, the Fund may be a purchaser of restricted debt or
equity securities (i.e., securities which may require registration under the
Securities Act of 1933, or an exemption therefrom, in order to be sold in the
ordinary course of business) in a private placement. The Fund has undertaken not
to purchase or acquire any such securities if, solely as a result of such
purchase or acquisition, more than 15% of the value of the Fund's net assets
would be invested in illiquid securities .
    

Special ConsiderationsSpecial Considerations

   
Investing in Greater Europe. Scudder Kemper Investments, Inc. has been managing
European investments for over 35 years. The Adviser employs a dedicated team of
approximately 20 experienced analysts, some of whom have specialized expertise
in Europe, and others of whom focus on one or more industries globally. These
analysts research
    


                                       7
<PAGE>

the diverse European markets and seek to identify companies, industries and
markets which may be undervalued which have outstanding growth prospects. These
two groups of analysts work in teams to create expertise synergies.

      In managing the Fund, the Adviser utilizes reports, statistics and other
investment information from a wide variety of sources, including brokers and
dealers who may execute portfolio transactions for the Fund and for clients of
the Adviser. Investment decisions, however, will be based primarily on critical
analyses and investigations, including visiting companies, touring facilities,
and interviewing suppliers and customers, by the Adviser's own research
specialists and portfolio managers. Field research, including visiting the
companies and/or countries a particular analyst covers, is an important piece of
the research effort.

Market Characteristics. The securities markets of many European countries are
relatively small, with the majority of market capitalization and trading volume
concentrated in a limited number of companies representing a small number of
industries. Consequently, the Fund's investment portfolio may experience greater
price volatility and significantly lower liquidity than a portfolio invested in
equity securities of U.S. companies. These markets may be subject to greater
influence by adverse events generally affecting the market, and by large
investors trading significant blocks of securities, than is usual in the U.S.
Securities settlements may in some instances be subject to delays and related
administrative uncertainties.

Investment and Repatriation Restrictions. Foreign investment in the securities
markets of certain European countries is restricted or controlled to varying
degrees. These restrictions or controls may at times limit or preclude
investment in certain securities and may increase the cost and expenses of the
Fund. As illustrations, certain countries require governmental approval prior to
investments by foreign persons, or limit the amount of investment by foreign
persons in a particular company, or limit the investment by foreign persons to
only a specific class of securities of a company which may have less
advantageous terms than securities of the company available for purchase by
nationals. In addition, the repatriation of both investment income and capital
from certain of the countries is controlled under regulations, including in some
cases the need for certain advance government notification or authority. The
Fund could be adversely affected by delays in, or a refusal to grant, any
required governmental approval for repatriation.

      In accordance with the Investment Company Act of 1940 (the "1940 Act"),
the Fund may invest up to 10% of its total assets in securities of closed-end
investment companies. This restriction on investments in securities of
closed-end investment companies may limit opportunities for the Fund to invest
indirectly in certain small capital markets. If the Fund acquires shares in
closed-end investment companies, shareholders would bear both their
proportionate share of expenses in the Fund (including management and advisory
fees) and, indirectly, the expenses of such closed-end investment companies
(including management and advisory fees).

Role of Banks in Capital Markets. In a number of European countries, commercial
banks act as securities brokers and dealers, and as underwriters, investment
fund managers and investment advisers. They also may hold equity participations,
as well as controlling interests, in industrial, commercial or financial
enterprises, including companies whose securities are publicly traded and listed
on European stock exchanges. Investors should consider the potential conflicts
of interest that result from the combination in a single firm of commercial
banking and diversified securities activities.

      The Fund is prohibited under the 1940 Act, in the absence of an exemptive
rule or other exemptive relief, from purchasing the securities of any company
that, in its most recent fiscal year, derived more than 15% of its gross
revenues from securities-related activities.

Corporate Disclosure Standards. Issuers of securities in some European
jurisdictions are not subject to the same degree of regulation as are U.S.
issuers with respect to such matters as insider trading rules, restrictions on
market manipulation, shareholder proxy requirements and timely disclosure of
information. The reporting, accounting and auditing standards of European
countries differ from U.S. standards in important respects and less information
is available to investors in securities of European companies than to investors
in U.S. securities.

Transaction Costs. Brokerage commissions and transaction costs for transactions
both on and off the securities exchanges in many European countries are
generally higher than in the U.S.


                                       8
<PAGE>

Economic and Political Risks. The economies of individual European countries may
differ favorably or unfavorably from the U.S. economy in such respects as growth
of gross domestic product or gross national product, as the case may be, rate of
inflation, capital reinvestment, resource self-sufficiency and balance of
payments position. In addition, securities traded in certain emerging European
securities markets may be subject to risks due to the inexperience of financial
intermediaries, the lack of modern technology, the lack of sufficient capital
base to expand business operations and the possibility of permanent or temporary
termination of trading and greater spreads between bid and asked prices for
securities in such markets. Business entities in many Eastern European countries
do not have any recent history of operating in a market-oriented economy, and
the ultimate impact of Eastern European countries' attempts to move toward more
market-oriented economies is currently unclear. In addition, any change in the
leadership or policies of Eastern European countries may halt the expansion of
or reverse the liberalization of foreign investment policies now occurring and
adversely affect existing investment opportunities.

Other Risks of European Investments. The Fund's investments could in the future
be adversely affected by any increase in taxes or by political, economic or
diplomatic developments. The Fund intends to seek investment opportunities
within the former "east bloc" countries in Eastern Europe. See "Investment
objective and policies" in the Fund's prospectus. All or a substantial portion
of such investments may be considered "not readily marketable" for purposes of
the limitations set forth below.

      Most Eastern European countries have had a centrally planned, socialist
economy since shortly after World War II. The governments of a number of Eastern
European countries currently are implementing reforms directed at political and
economic liberalization, including efforts to decentralize the economic
decision-making process and move towards a market economy. There can be no
assurance that these reforms will continue or, if continued will achieve their
goals.

      Investing in the securities of the former "east bloc" Eastern European
issuers involves certain considerations not usually associated with investing in
securities of issuers in more developed capital markets such as the U.S., Japan
or Western Europe, including (i) political and economic considerations, such as
greater risks of expropriation, confiscatory taxation, nationalization and less
social, political and economic stability; (ii) the small current size of markets
for such securities and the currently low or non-existent volume of trading,
resulting in lack of liquidity and in price volatility; (iii) certain national
policies which may restrict the Fund's investment opportunities, including,
without limitation, restrictions on investing in issuers or industries deemed
sensitive to relevant national interest; and (iv) the absence of developed legal
structures governing foreign private investments and private property.
Applicable accounting and financial reporting standards in Eastern Europe may be
substantially different from U.S. accounting standards and, in certain Eastern
European countries, no reporting standards currently exist. Consequently,
substantially less information is available to investors in Eastern Europe, and
the information that is available may not be conceptually comparable to, or
prepared on the same basis as that available in more developed capital markets,
which may make it difficult to assess the financial status of particular
companies.

   
      The governments of certain Eastern European countries may require that a
governmental or quasi-governmental authority act as custodian of the Fund's
assets invested in such countries. These authorities may not be qualified to act
as foreign custodians under the 1940 Act and, as a result, the Fund would not be
able to invest in these countries in the absence of exemptive relief from the
Securities and Exchange Commission (the "SEC"). In addition, the risk of loss
through government confiscation may be increased in such countries.
    

General Investment Objectives and Policies of Scudder Emerging Markets Growth
Fund

      Scudder Emerging Markets Growth Fund ("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.
    


                                       9
<PAGE>

      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.

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

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

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

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

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

      o     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, enter into
reverse repurchase agreements and may engage in various strategic transactions,
including derivatives.

      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 accurately predict 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.
    

Special Considerations

Investing in Emerging Markets. Most emerging securities markets may have
substantially less volume and are subject to less government supervision than
U.S. securities markets. Securities of many issuers in emerging markets may be
less


                                       10
<PAGE>

liquid and more volatile than securities of comparable domestic issuers. In
addition, there is less regulation of securities exchanges, securities dealers,
and listed and unlisted companies in emerging markets than in the U.S.

      Emerging 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. Delays in settlement could result in
temporary periods when a portion of the assets of the Fund is uninvested and no
cash is earned thereon. The inability of the 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 the Fund due to subsequent
declines in value of the portfolio security or, if the Fund has entered into a
contract to sell the security, could result 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.
Such transactions also involve additional costs for the purchase or sale of
foreign currency.

      Certain emerging markets require prior governmental approval of
investments by foreign persons, limit the amount of investment by foreign
persons in a particular company, limit the investment by foreign persons only to
a specific class of securities of a company that may have less advantageous
rights than the classes available for purchase by domiciliaries of the countries
and/or impose additional taxes on foreign investors. Certain emerging markets
may also restrict investment opportunities in issuers in industries deemed
important to national interest.

      Certain emerging 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 an
emerging market's balance of payments or for other reasons, a country could
impose temporary restrictions on foreign capital remittances. The 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.

      In the course of investment in emerging markets, the Fund will be exposed
to the direct or indirect consequences of political, social and economic changes
in one or more emerging markets. While the Fund will manage its assets in a
manner that will seek to minimize the exposure to such risks, there can be no
assurance that adverse political, social or economic changes will not cause the
Fund to suffer a loss of value in respect of the securities in the Fund's
portfolio.

   
      The risk also exists that an emergency situation may arise in one or more
emerging markets as a result of which trading of securities may cease or may be
substantially curtailed and prices for the Fund's securities in such markets may
not be readily available. The Corporation may suspend redemption of its shares
for any period during which an emergency exists, as determined by the SEC.
Accordingly if the Fund believes that appropriate circumstances exist, it will
promptly apply to the SEC for a determination that an emergency is present.
During the period commencing from the Fund's identification of such condition
until the date of the SEC action, the Fund's securities in the affected markets
will be valued at fair value determined in good faith by or under the direction
of the Corporation's Board of Directors.

      Volume and liquidity in most foreign markets are less than in the U.S. and
securities of many foreign companies are less liquid and more volatile than
securities of comparable U.S. companies. Fixed commissions on foreign securities
exchanges are generally higher than negotiated commissions on U.S. exchanges,
although the Fund endeavors to achieve the most favorable net results on its
portfolio transactions. There is generally less government supervision and
regulation of business and industry practices, securities exchanges, brokers,
dealers and listed companies than in the U.S. Mail service between the U.S. and
foreign countries may be slower or less reliable than within the U.S., thus
increasing the risk of delayed settlements of portfolio transactions or loss of
certificates for portfolio securities. In addition, with respect to certain
emerging markets, there is the possibility of expropriation or confiscatory
taxation, political or social instability, or diplomatic developments which
could affect the Fund's investments in those countries. Moreover, individual
emerging market economies may differ favorably or unfavorably from the U.S.
economy in such respects as growth of gross national product, rate of inflation,
capital reinvestment, resource self-sufficiency and balance of payments
position. The chart below sets forth the risk ratings of selected emerging
market countries' sovereign debt securities.

   Sovereign Risk Ratings for Selected Emerging Market Countries as of 1/15/98
        (Source: J.P. Morgan Securities, Inc., Emerging Markets Research)
    


                                       11
<PAGE>


   
            Country                          Moody's     Standard & Poor's

            Chile                            Baa1        A-
            Turkey                           B1          B
            Mexico                           Ba2         BB
            Czech Republic                   Baa1        A
            Hungary                          Baa3        BBB-
            Colombia                         Baa3        BBB-
            Venezuela                        Ba2         B+
            Morocco                          NR          NR
            Argentina                        Ba3         BB
            Brazil                           B1          BB-
            Poland                           Baa3        BBB-
            Ivory Coast                      NR          NR

      A Fund may have limited legal recourse in the event of a default with
respect to certain debt obligations it holds. If the issuer of a fixed-income
security owned by a Fund defaults, the Fund may incur additional expenses to
seek recovery. Debt obligations issued by emerging market country governments
differ from debt obligations of private entities; remedies from defaults on debt
obligations issued by emerging market governments, unlike those on private debt,
must be pursued in the courts of the defaulting party itself. A Fund's ability
to enforce its rights against private issuers may be limited. The ability to
attach assets to enforce a judgment may be limited. Legal recourse is,
therefore, somewhat diminished. Bankruptcy, moratorium and other similar laws
applicable to private issuers of debt obligations may be substantially different
from those of other countries. The political context, expressed as an emerging
market governmental issuer's willingness to meet the terms of the debt
obligation, for example, is of considerable importance. In addition, no
assurance can be given that the holders of commercial bank debt may not contest
payments to the holders of debt obligations in the event of default under
commercial bank loan agreements. With four exceptions (Panama, Cuba, Costa Rica
and Yugoslavia), no sovereign emerging markets borrower has defaulted on an
external bond issue since World War II.

      Income from securities held by a Fund could be reduced by a withholding
tax on the source or other taxes imposed by the emerging market countries in
which the Fund makes its investments. A Fund's net asset value may also be
affected by changes in the rates or methods of taxation applicable to the Fund
or to entities in which the Fund has invested. The Adviser will consider the
cost of any taxes in determining whether to acquire any particular investments,
but can provide no assurance that the taxes will not be subject to change.
    

      Many emerging markets 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 adverse
effects on the economies and securities markets of certain emerging market
countries. In an attempt to control inflation, wage and price controls have been
imposed in certain countries. Of these countries, some, in recent years, have
begun to control inflation through prudent economic policies.

      Emerging market governmental issuers are among the largest debtors to
commercial banks, foreign governments, international financial organizations and
other financial institutions. Certain emerging market governmental issuers have
not been able to make payments of interest on or principal of debt obligations
as those payments have come due. Obligations arising from past restructuring
agreements may affect the economic performance and political and social
stability of those issuers.

      Governments of many emerging market countries have exercised and continue
to exercise substantial influence over many aspects of the private sector
through the ownership or control of many companies, including some of the
largest in any given country. As a result, government actions in the future
could have a significant effect on economic conditions in emerging markets,
which in turn, may adversely affect companies in the private sector, general
market conditions and prices and yields of certain of the securities in the
Fund's portfolio. Expropriation, confiscatory taxation, nationalization,
political, economic or social instability or other similar developments have
occurred frequently over the history of certain emerging markets and could
adversely affect the Fund's assets should these conditions recur.


                                       12
<PAGE>

      The ability of emerging market country governmental issuers to make timely
payments on their obligations is likely to be influenced strongly by the
issuer's balance of payments, including export performance, and its access to
international credits and investments. An emerging market whose exports are
concentrated in a few commodities could be vulnerable to a decline in the
international prices of one or more of those commodities. Increased
protectionism on the part of an emerging market's trading partners could also
adversely affect the country's exports and diminish its trade account surplus,
if any. To the extent that emerging markets receive payment for its exports in
currencies other than dollars or non-emerging market currencies, its ability to
make debt payments denominated in dollars or non-emerging market currencies
could be affected.

      Another factor bearing on the ability of emerging market countries to
repay debt obligations is the level of international reserves of the country.
Fluctuations in the level of these reserves affect the amount of foreign
exchange readily available for external debt payments and thus could have a
bearing on the capacity of emerging market countries to make payments on these
debt obligations.

      To the extent that an emerging market country cannot generate a trade
surplus, it must depend on continuing loans from foreign governments,
multilateral organizations or private commercial banks, aid payments from
foreign governments and on inflows of foreign investment. The access of emerging
markets to these forms of external funding may not be certain, and a withdrawal
of external funding could adversely affect the capacity of emerging market
country governmental issuers to make payments on their obligations. In addition,
the cost of servicing emerging market debt obligations can be affected by a
change in international interest rates since the majority of these obligations
carry interest rates that are adjusted periodically based upon international
rates.

      Investing in Europe. Most Eastern European nations, including Hungary,
Poland, Czechoslovakia, and Romania have had centrally planned, socialist
economies since shortly after World War II. A number of their governments,
including those of Hungary, the Czech Republic, and Poland are currently
implementing or considering reforms directed at political and economic
liberalization, including efforts to foster multi-party political systems,
decentralize economic planning, and move toward free market economies. At
present, no Eastern European country has a developed stock market, but Poland,
Hungary, and the Czech Republic have small securities markets in operation.
Ethnic and civil conflict currently exist within the former Yugoslavia. The
outcome is uncertain.

      Both the European Community (the "EC") and Japan, among others, have made
overtures to establish trading arrangements and assist in the economic
development of the Eastern European nations. A great deal of interest also
surrounds opportunities created by the reunification of East and West Germany.
Following reunification, the Federal Republic of Germany has remained a firm and
reliable member of the EC and numerous other international alliances and
organizations. To reduce inflation caused by the unification of East and West
Germany, Germany has adopted a tight monetary policy which has led to weakened
exports and a reduced domestic demand for goods and services. However, in the
long-term, reunification could prove to be an engine for domestic and
international growth.

      The conditions that have given rise to these developments are changeable,
and there is no assurance that reforms will continue or that their goals will be
achieved.

      Portugal is a genuinely emerging market which has experienced rapid growth
since the mid-1980s, except for a brief period of stagnation over 1990-91.
Portugal's government remains committed to privatization of the financial system
away from one dependent upon the banking system to a more balanced structure
appropriate for the requirements of a modern economy. Inflation continues to be
about three times the EC average.

      Economic reforms launched in the 1980s continue to benefit Turkey in the
1990s. Turkey's economy has grown steadily since the early 1980s, with real
growth in per capita GDP increasing more than 6% annually. Agriculture remains
the most important economic sector, employing approximately 55% of the labor
force, and accounting for nearly 20% of GDP and 20% of exports. Inflation and
interest rates remain high, and a large budget deficit will continue to cause
difficulties in Turkey's substantial transformation to a dynamic free market
economy.

      Like many other Western economies, Greece suffered severely from the
global oil price hikes of the 1970s, with annual GDP growth plunging from 8% to
2% in the 1980s, and inflation, unemployment, and budget deficits rising
sharply. The fall of the socialist government in 1989 and the inability of the
conservative opposition to obtain a clear majority have led to business
uncertainty and the continued prospects for flat economic performance. Once
Greece has


                                       13
<PAGE>

sorted out its political situation, it will have to face the challenges posed by
the steadily increasing integration of the EC, including the progressive
lowering of trade and investment barriers. Tourism continues as a major
industry, providing a vital offset to a sizable commodity trade deficit.

      Securities traded in certain emerging European securities markets may be
subject to risks due to the inexperience of financial intermediaries, the lack
of modern technology and the lack of a sufficient capital base to expand
business operations. Additionally, former Communist regimes of a number of
Eastern European countries had expropriated a large amount of property, the
claims of which have not been entirely settled. There can be no assurance that
the Fund's investments in Eastern Europe would not also be expropriated,
nationalized or otherwise confiscated. Finally, any change in leadership or
policies of Eastern European countries, or 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 opportunities.

      Investing in Africa. Africa is a continent of roughly 50 countries with a
total population of approximately 840 million people. Literacy rates (the
percentage of people who are over 15 years of age and who can read and write)
are relatively low, ranging from 20% to 60%. The primary industries include
crude oil, natural gas, manganese ore, phosphate, bauxite, copper, iron,
diamond, cotton, coffee, cocoa, timber, tobacco, sugar, tourism and cattle.

      Many of the countries are fraught with political instability. There has
been a trend over the past five years toward democratization. Many countries are
moving from a military style, Marxist, or single party government to a
multi-party system. Still, there remain many countries that do not have a stable
political process. Other countries have been enmeshed in civil wars and border
clashes.

      Economically, the Northern Rim countries (including Morocco, Egypt and
Algeria) and Nigeria, Zimbabwe and South Africa are the wealthier countries on
the continent. The market capitalization of these countries has been growing
recently as more international companies invest in Africa and as local companies
start to list on the exchanges. However, religious and ethnic strife has been a
significant source of instability.

      On the other end of the economic spectrum are countries, such as
Burkinafaso, Madagascar and Malawi, that are considered to be among the poorest
or least developed in the world. These countries are generally landlocked or
have poor natural resources. The economies of many African countries are heavily
dependent on international oil prices. Of all the African industries, oil has
been the most lucrative, accounting for 40% to 60% of many countries' GDP. A
general decline in oil prices may have an adverse impact on many economies.

   
Economic Growth. Emerging markets are an increasingly important part of the
world's investment activity. The chief rationale for investing in emerging
markets is the dramatic growth rates that these economies continue to enjoy.
Over the past decade, the annual percentage change in the economic growth rates
of emerging market countries has been climbing above that of the mature markets,
as shown in the chart below.(1)

      This growth translates into an average annual percentage change (as
measured by GDP) of 2.53% for mature economies, compared to 3.89% for developing
countries.(2) Emerging market economies are projected to grow at a 6.3% annual
rate -- more than double the expected growth of established countries in Europe,
Asia and North America (2.4%).(3)
    

Investing in Foreign Securities

      Investors should recognize that investing in foreign securities involves
certain special considerations, including those set forth below, which are not
typically associated with investing in United States securities and which may
favorably or unfavorably affect the Funds' performance. As foreign companies are
not generally subject to uniform accounting and auditing and financial reporting
standards, practices and requirements comparable to those applicable to domestic
companies, there may be less publicly available information about a foreign
company than about a domestic company. Many foreign stock markets, while growing
in volume of trading activity, have substantially less volume than

- ----------
(1)  International Monetary Fund, 1997. OECD Economic Outlook, October 1997.
(2)  International Monetary Fund, 1995. OECD Economic Outlook, June 1995.
(3)  IMF World Economic Outlook, 1997.


                                       14
<PAGE>

the New York Stock Exchange (the "Exchange"), and securities of some foreign
companies are less liquid and more volatile than securities of domestic
companies. Similarly, volume and liquidity in most foreign bond markets are less
than the volume and liquidity in the United States and at times, volatility of
price can be greater than in the United States. Further, foreign markets have
different clearance and settlement procedures and in certain markets there have
been times when settlements have been unable to keep pace with the volume of
securities transactions making it difficult to conduct such transactions. Delays
in settlement could result in temporary periods when assets of a Fund are
uninvested and no return is earned thereon. The inability of a Fund to make
intended security purchases due to settlement problems could cause that Fund to
miss attractive investment opportunities. Inability to dispose of portfolio
securities due to settlement problems either could result in losses to a Fund
due to subsequent declines in value of the portfolio security or, if a Fund has
entered into a contract to sell the security, could result in possible liability
to the purchaser. Payment for securities without delivery may be required in
certain foreign markets. Fixed commissions on some foreign stock exchanges are
generally higher than negotiated commissions on U.S. exchanges, although the
Funds will endeavor to achieve the most favorable net results on their portfolio
transactions. Further, a Fund may encounter difficulties or be unable to pursue
legal remedies and obtain judgments in foreign courts. There is generally less
government supervision and regulation of business and industry practices, stock
exchanges, brokers and listed companies than in the United States. It may be
more difficult for the Funds' agents to keep currently informed about corporate
actions such as stock dividends or other matters which may affect the prices of
portfolio securities. Communications between the United States and foreign
countries may be less reliable than within the United States, thus increasing
the risk of delayed settlements of portfolio transactions or loss of
certificates for portfolio securities. In addition, with respect to certain
foreign countries, there is the possibility of nationalization, expropriation,
the imposition of withholding or confiscatory taxes, political, social, or
economic instability, or diplomatic developments which could affect United
States investments in those countries. Investments in foreign securities may
also entail certain risks, such as possible currency blockages or transfer
restrictions, and the difficulty of enforcing rights in other countries.
Moreover, individual foreign economies may differ favorably or unfavorably from
the United States economy in such respects as growth of gross national product,
rate of inflation, capital reinvestment, resource self-sufficiency and balance
of payments position.

   
      Many of the currencies of Eastern European countries have experienced a
steady devaluation relative to western currencies. Any future devaluation may
have a detrimental impact on any investments made by a Fund in Eastern Europe.
The currencies of most Eastern European countries are not freely convertible
into other currencies and are not internationally traded. A Fund will not invest
its assets in non-convertible fixed income securities denominated in currencies
that are not freely convertible into other currencies at the time the investment
is made.
    

      These considerations generally are more of a concern in developing
countries. For example, the possibility of revolution and the dependence on
foreign economic assistance may be greater in these countries than in developed
countries. The management of each Fund seeks to mitigate the risks associated
with these considerations through diversification and active professional
management. Although investments in companies domiciled in developing countries
may be subject to potentially greater risks than investments in developed
countries, neither Fund will invest in any securities of issuers located in
developing countries if the securities, in the judgment of the Adviser, are
speculative.

Specialized Investment Techniques

Foreign Currencies. Because investments in foreign securities usually will
involve currencies of foreign countries, and because each Fund may hold foreign
currencies and forward contracts, futures contracts and options on futures
contracts on foreign currencies, the value of the assets of a Fund as measured
in U.S. dollars may be affected favorably or unfavorably by changes in foreign
currency exchange rates and exchange control regulations, and a Fund may incur
costs in connection with conversions between various currencies. In particular,
many Latin American currencies have experienced significant devaluation relative
to the dollar. Although each Fund values its assets daily in terms of U.S.
dollars, it does not intend to convert its holdings of foreign currencies into
U.S. dollars on a daily basis. It will do so from time to time, and investors
should be aware of the costs of currency conversion. Although foreign exchange
dealers do not charge a fee for conversion, they do realize a profit based on
the difference (the "spread") between the prices at which they are buying and
selling various currencies. Thus, a dealer may offer to sell a foreign currency
to a Fund at one rate, while offering a lesser rate of exchange should that Fund
desire to resell that currency to the dealer. Each Fund will conduct its foreign
currency exchange transactions either on a spot (i.e., cash) basis at the spot
rate


                                       15
<PAGE>

prevailing in the foreign currency exchange market, or through entering into
forward or futures contracts to purchase or sell foreign currencies.

Depositary Receipts. Each Fund may invest directly in securities of emerging
country issuers through sponsored or unsponsored American Depositary Receipts
("ADRs"), Global Depositary Receipts ("GDRs"), International Depositary Receipts
("IDRs") and other types of Depositary Receipts (which, together with ADRs, GDRs
and IDRs are hereinafter referred to as "Depositary Receipts"). Depositary
Receipts may not necessarily be denominated in the same currency as the
underlying securities into which they may be converted. In addition, the issuers
of the stock of unsponsored Depositary Receipts are not obligated to disclose
material information in the United States and, therefore, there may not be a
correlation between such information and the market value of the Depositary
Receipts. ADRs are Depositary Receipts typically issued by a U.S. bank or trust
company which evidence ownership of underlying securities issued by a foreign
corporation. GDRs, IDRs and other types of Depositary Receipts are typically
issued by foreign banks or trust companies, although they also may be issued by
United States banks or trust companies, and evidence ownership of underlying
securities issued by either a foreign or a United States corporation. Generally,
Depositary Receipts in registered form are designed for use in the United States
securities markets and Depositary Receipts in bearer form are designed for use
in securities markets outside the United States. For purposes of each Fund's
investment policies, a Fund's investments in ADRs, GDRs and other types of
Depositary Receipts will be deemed to be investments in the underlying
securities. Depositary Receipts other than those denominated in U.S. dollars
will be subject to foreign currency exchange rate risk. Certain Depositary
Receipts may not be listed on an exchange and therefore may be illiquid
securities.

Loan Participations and Assignments. Latin America Fund may invest in fixed and
floating rate loans ("Loans") arranged through private negotiations between an
issuer of emerging market debt instruments and one or more financial
institutions ("Lenders"). The Fund's investments in Loans in Latin America are
expected in most instances to be in the form of participations in Loans
("Participations") and assignments of portions of Loans ("Assignments") from
third parties. Participations typically will result in the Fund having a
contractual relationship only with the Lender and not with the borrower. The
Fund will have the right to receive payments of principal, interest and any fees
to which it is entitled only from the Lender selling the Participation and only
upon receipt by the Lender of the payments from the borrower. In connection with
purchasing Participations, the Fund generally will have no right to enforce
compliance by the borrower with the terms of the loan agreement relating to the
Loan, nor any rights of set-off against the borrower, and the Fund may not
directly benefit from any collateral supporting the Loan in which it has
purchased the Participation. As a result, the Fund will assume the credit risk
of both the borrower and the Lender that is selling the Participation. In the
event of the insolvency of the Lender selling a Participation, the Fund may be
treated as a general creditor of the Lender and may not benefit from any set-off
between the Lender and the borrower. The Fund will acquire Participations only
if the Lender interpositioned between the Fund and the borrower is determined by
the Investment Manager to be creditworthy.

      When the Fund purchases Assignments from Lenders, the Fund will acquire
direct rights against the borrower on the Loan. Because Assignments are arranged
through private negotiations between potential assignees and potential
assignors, however, the rights and obligations acquired by the Fund as the
purchaser of an Assignment may differ from, and may be more limited than, those
held by the assigning Lender.

      The Fund may have difficulty disposing of Assignments and Participations.
Because no liquid market for these obligations typically exists, the Fund
anticipates that these obligations could be sold only to a limited number of
institutional investors. The lack of a liquid secondary market will have an
adverse effect on the Fund's ability to dispose of particular Assignments or
Participations when necessary to meet the Fund's liquidity needs or in response
to a specific economic event, such as a deterioration in the creditworthiness of
the borrower. The lack of a liquid secondary market for Assignments and
Participations may also make it more difficult for the Fund to assign a value to
those securities for purposes of valuing the Fund's portfolio and calculating
its net asset value.

Debt Securities. When the Adviser believes that it is appropriate to do so in
order to achieve each Fund's objective of long-term capital appreciation, a Fund
may invest in debt securities including bonds of foreign governments,
supranational organizations and private issuers. Portfolio debt investments will
be selected on the basis of, among other things, credit quality, and the
fundamental outlooks for currency, economic and interest rate trends, taking
into account


                                       16
<PAGE>

the ability to hedge a degree of currency or local bond price risk. Each Fund
may purchase "investment-grade" bonds, rated Aaa, Aa or A by Moody's or AAA, AA
or A by S&P or, if unrated, judged to be of equivalent quality as determined by
the Adviser. Greater Europe Growth Fund may invest up to 20% of its total assets
in European debt securities. Latin America Fund, Greater Europe Growth Fund
(within its 20% limit) and Emerging Markets Growth Fund may also purchase bonds
rated Baa by Moody's or BBB by S&P. Bonds rated Baa or BBB may have speculative
elements as well as investment-grade characteristics.

      Latin America Fund, Greater Europe Growth Fund (subject to its 20% limit)
and Emerging Markets Growth Fund may each also purchase debt securities which
are rated below investment-grade, that is, rated below Baa by Moody's or below
BBB by S&P and unrated securities ("high yield/high risk securities"), which
usually entail greater risk (including the possibility of default or bankruptcy
of the issues of such securities), generally involve greater volatility of price
and risk of principal and income, and may be less liquid, than securities in the
higher rating categories. The lower the ratings of such debt securities, the
greater their risks render them like equity securities. Latin America Fund
(subject to a limit of no more than 10% of its total assets), Greater Europe
Growth Fund (subject to its 20% limit) and Emerging Markets Growth Fund may
purchase bonds rated B or lower by Moody's or S&P, and may invest in securities
which are rated C by Moody's or D by S&P or securities of comparable quality in
the Adviser's judgment. Such securities may be in default with respect to
payment of principal or interest. Such securities carry a high degree of risk
and are considered speculative. See the Appendix to this Statement of Additional
Information for a more complete description of the ratings assigned by ratings
organizations and their respective characteristics.

      The Adviser expects that a significant portion of any of the Emerging
Markets Growth Fund's bond investments will be purchased at a discount to par
value. To the extent developments in emerging markets result in improving credit
fundamentals and rating upgrades for countries in emerging markets, the Adviser
believes that there is the potential for capital appreciation as the improving
fundamentals become reflected in the price of the debt instruments. The Adviser
also believes that a country's sovereign credit rating (with respect to foreign
currency denominated issues) acts as a "ceiling" on the rating of all debt
issuers from that country. Thus, the ratings of private sector companies cannot
be higher than that of their home countries. The Adviser believes, however, that
many companies in emerging market countries, if rated on a stand alone basis
without regard to the rating of the home country, possess fundamentals that
could justify a higher credit rating, particularly if they are major exporters
and receive the bulk of their revenues in U.S. dollars or other hard currencies.
The Adviser seeks to identify such opportunities and benefit from this type of
market inefficiency.

      Certain Latin American countries are among the largest debtors to
commercial banks and foreign governments. Trading in debt obligations
("sovereign debt") issued or guaranteed by Latin American governments or their
agencies or instrumentalities ("governmental entities") involves a high degree
of risk. The governmental entity that controls the repayment of sovereign debt
may not be willing or able to repay the principal and/or interest when due in
accordance with the terms of such obligations. A governmental entity's
willingness or ability to repay principal and interest due in a timely manner
may be affected by, among other factors, its cash flow situation, dependence on
expected disbursements from third parties, the governmental entity's policy
towards the International Monetary Fund and the political constraints to which a
governmental entity may be subject. As a result, governmental entities may
default on their sovereign debt. Holders of sovereign debt (including Latin
America Fund) 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.

   
High Yield/High Risk Bonds. Within Latin America Fund's 10% limit on investments
in bonds rated B or lower by Moody's or S&P and Greater Europe Growth Fund's 20%
limit of investments in European debt securities, and Emerging Markets Growth
Fund, each Fund may also purchase debt securities which are rated below
investment-grade, commonly referred to as junk bonds, that is, rated below Baa
by Moody's or below BBB by S&P and unrated securities, which usually entail
greater risk (including the possibility of default or bankruptcy of the issuers
of such securities), generally involve greater volatility of price and risk of
principal and income, and may be less liquid, than securities in the higher
rating categories. The lower the ratings of such debt securities, the greater
their risks render them like equity securities. The Funds may invest in
securities which are rated C by Moody's and D by S&P. Such securities may be in
default with respect to payment of principal or interest. See the Appendix to
this Statement of Additional Information for a more complete description of the
ratings assigned by ratings organizations and their respective characteristics.
    


                                       17
<PAGE>

      High-yield, high-risk securities are especially subject to adverse changes
in general economic conditions, to changes in the financial condition of their
issuers and to price fluctuations in response to changes in interest rates. An
economic downturn could disrupt the high yield market and impair the ability of
issuers to repay principal and interest. Also, an increase in interest rates
would have a greater adverse impact on the value of such obligations than on
higher quality debt securities. During an economic downturn or period of rising
interest rates, highly leveraged issues may experience financial stress which
would adversely affect their ability to service their principal and interest
payment obligations. Prices and yields of high yield securities will fluctuate
over time and, during periods of economic uncertainty, volatility of high yield
securities may adversely affect either Fund's net asset value. In addition,
investments in high yield zero coupon or pay-in-kind bonds, rather than
income-bearing high yield securities, may be more speculative and may be subject
to greater fluctuations in value due to changes in interest rates.

      The trading market for high yield securities may be thin to the extent
that there is no established retail secondary market. A thin trading market may
limit the ability of a Fund to accurately value high yield securities in its
portfolio and to dispose of those securities. Adverse publicity and investor
perceptions may decrease the values and liquidity of high yield securities.
These securities may also involve special registration responsibilities,
liabilities and costs, and liquidity and valuation difficulties.

      Credit quality in the high-yield securities market can change suddenly and
unexpectedly, and even recently-issued credit ratings may not fully reflect the
actual risks posed by a particular high-yield security. For these reasons, it is
the policy of the Adviser not to rely exclusively on ratings issued by
established credit rating agencies, but to supplement such ratings with its own
independent and on-going review of credit quality. The achievement of the Fund's
investment objective by investment in such securities may be more dependent on
the Adviser's credit analysis than is the case for higher quality bonds. Should
the rating of a portfolio security be downgraded, the Adviser will determine
whether it is in the best interest of a Fund to retain or dispose of such
security. For information concerning tax issues related to high yield/high risk
securities, see "TAXES."

Strategic Transactions and Derivatives. 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 the 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, the Funds 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 a Fund's unrealized gains in the value of its
portfolio securities, to facilitate the sale of such securities for investment
purposes, to manage the effective maturity or duration of the 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 a 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. The Funds 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.


                                       18
<PAGE>

   
      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 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 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 to create leveraged exposure in the Fund.
    

General Characteristics of Options. Put options and call options typically have
similar structural characteristics and operational mechanics regardless of the
underlying instrument on which they are purchased or sold. Thus, the following
general discussion relates to each of the particular types of options discussed
in greater detail below. In addition, many Strategic Transactions involving
options require segregation of Fund assets in special accounts, as described
below under "Use of Segregated and Other Special Accounts."

      A put option gives the purchaser of the option, upon payment of a premium,
the right to sell, and the writer the obligation to buy, the underlying
security, commodity, index, currency or other instrument at the exercise price.
For instance, a Fund's purchase of a put option on a security might be designed
to protect its holdings in the underlying instrument (or, in some cases, a
similar instrument) against a substantial decline in the market value by giving
the Fund the right to sell such instrument at the option exercise price. A call
option, upon payment of a premium, gives the purchaser of the option the right
to buy, and the seller the obligation to sell, the underlying instrument at the
exercise price. The Fund's purchase of a call option on a security, financial
future, index, currency or other instrument might be intended to protect the
Fund against an increase in the price of the underlying instrument that it
intends to purchase in the future by fixing the price at which it may purchase
such instrument. An American style put or call option may be exercised at any
time during the option period while a European style put or call option may be
exercised only upon expiration or during a fixed period prior thereto. The Funds
are authorized to purchase and sell exchange listed options and over-the-counter
options ("OTC options"). Exchange listed options are issued by a regulated
intermediary such as the Options Clearing Corporation ("OCC"), which guarantees
the performance of the obligations of the parties to such options. The
discussion below uses the OCC as an example, but is also applicable to other
financial intermediaries.

      With certain exceptions, OCC issued and exchange listed options generally
settle by physical delivery of the underlying security or currency, although in
the future cash settlement may become available. Index options and Eurodollar
instruments are cash settled for the net amount, if any, by which the option is
"in-the-money" (i.e., where the value of the underlying instrument exceeds, in
the case of a call option, or is less than, in the case of a put option, the
exercise price of the option) at the time the option is exercised. Frequently,
rather than taking or making delivery of the underlying instrument through the
process of exercising the option, listed options are closed by entering into
offsetting purchase or sale transactions that do not result in ownership of the
new option.

      Each Fund's ability to close out its position as a purchaser or seller of
an OCC or exchange listed put or call option is dependent, in part, upon the
liquidity of the option market. Among the possible reasons for the absence of a
liquid option market on an exchange are: (i) insufficient trading interest in
certain options; (ii) restrictions on transactions imposed by an exchange; (iii)
trading halts, suspensions or other restrictions imposed with respect to
particular classes or series of options or underlying securities including
reaching daily price limits; (iv) interruption of the normal operations of the
OCC or an exchange; (v) inadequacy of the facilities of an exchange or OCC to
handle current trading volume; or


                                       19
<PAGE>

(vi) a decision by one or more exchanges to discontinue the trading of options
(or a particular class or series of options), in which event the relevant market
for that option on that exchange would cease to exist, although outstanding
options on that exchange would generally continue to be exercisable in
accordance with their terms.

      The hours of trading for listed options may not coincide with the hours
during which the underlying financial instruments are traded. To the extent that
the option markets close before the markets for the underlying financial
instruments, significant price and rate movements can take place in the
underlying markets that cannot be reflected in the option markets.

      OTC options are purchased from or sold to securities dealers, financial
institutions or other parties ("Counterparties") through direct bilateral
agreement with the Counterparty. In contrast to exchange listed options, which
generally have standardized terms and performance mechanics, all the terms of an
OTC option, including such terms as method of settlement, term, exercise price,
premium, guarantees and security, are set by negotiation of the parties. A Fund
will only sell OTC options (other than OTC currency options) that are subject to
a buy-back provision permitting the Fund to require the Counterparty to sell the
option back to the Fund at a formula price within seven days. The Funds expect
generally to enter into OTC options that have cash settlement provisions,
although they are not required to do so.

   
      Unless the parties provide for it, there is no central clearing or
guaranty function in an OTC option. As a result, if the Counterparty fails to
make or take delivery of the security, currency or other instrument underlying
an OTC option it has entered into with a Fund or fails to make a cash settlement
payment due in accordance with the terms of that option, a Fund will lose any
premium it paid for the option as well as any anticipated benefit of the
transaction. Accordingly, the Adviser must assess the creditworthiness of each
such Counterparty or any guarantor or credit enhancement of the Counterparty's
credit to determine the likelihood that the terms of the OTC option will be
satisfied. The Funds will engage in OTC option transactions only with U.S.
government securities dealers recognized by the Federal Reserve Bank of New York
as "primary dealers" or broker/dealers, domestic or foreign banks or other
financial institutions which have received (or the guarantors of the obligation
of which have received) a short-term credit rating of A-1 from S&P or P-1 from
Moody's or an equivalent rating from any nationally recognized statistical
rating organization ("NRSRO") or are determined to be of equivalent credit
quality by the Adviser. The staff of the "SEC" currently takes the position that
OTC options purchased by a Fund, and portfolio securities "covering" the amount
of a Fund's obligation pursuant to an OTC option sold by it (the cost of the
sell-back plus the in-the-money amount, if any) are illiquid, and are subject to
a Fund's limitation on investing no more than 15% of its net assets in illiquid
securities.
    

      If a Fund sells a call option, the premium that it receives may serve as a
partial hedge, to the extent of the option premium, against a decrease in the
value of the underlying securities or instruments in its portfolio or will
increase a Fund's income. The sale of put options can also provide income.

      Each Fund may purchase and sell call options on securities including U.S.
Treasury and agency securities, mortgage-backed securities, corporate debt
securities, equity securities (including convertible securities) and Eurodollar
instruments that are traded on U.S. and foreign securities exchanges and in the
over-the-counter markets, and on securities indices, currencies and futures
contracts. All calls sold by a Fund must be "covered" (i.e., a Fund must own the
securities or futures contract subject to the call) or must meet the asset
segregation requirements described below as long as the call is outstanding.
Even though a Fund will receive the option premium to help protect it against
loss, a call sold by a Fund exposes that Fund during the term of the option to
possible loss of opportunity to realize appreciation in the market price of the
underlying security or instrument and may require a Fund to hold a security or
instrument which it might otherwise have sold.

      Each Fund may purchase and sell put options on securities including U.S.
Treasury and agency securities, mortgage-backed securities, foreign sovereign
debt, corporate debt securities, equity securities (including convertible
securities) and Eurodollar instruments (whether or not it holds the above
securities in its portfolio), and on securities indices, currencies and futures
contracts other than futures on individual corporate debt and individual equity
securities. Each Fund will not sell put options if, as a result, more than 50%
of a Fund's assets would be required to be segregated to cover its potential
obligations under such put options other than those with respect to futures and
options thereon. In selling put options, there is a risk that a Fund may be
required to buy the underlying security at a disadvantageous price above the
market price.


                                       20
<PAGE>

General Characteristics of Futures. Each Fund may enter into financial futures
contracts or purchase or sell put and call options on such futures as a hedge
against anticipated interest rate, currency or equity market changes, for
duration management and for risk management purposes. Futures are generally
bought and sold on the commodities exchanges where they are listed with payment
of initial and variation margin as described below. The sale of a futures
contract creates a firm obligation by a Fund, as seller, to deliver to the buyer
the specific type of financial instrument called for in the contract at a
specific future time for a specified price (or, with respect to index futures
and Eurodollar instruments, the net cash amount). Options on futures contracts
are similar to options on securities except that an option on a futures contract
gives the purchaser the right in return for the premium paid to assume a
position in a futures contract and obligates the seller to deliver such
position.

      Each Fund's use of financial futures and options thereon will in all cases
be consistent with applicable regulatory requirements and in particular the
rules and regulations of the Commodity Futures Trading Commission and will be
entered into only for bona fide hedging, risk management (including duration
management) or other portfolio management purposes. Typically, maintaining a
futures contract or selling an option thereon requires the Fund to deposit with
a financial intermediary as security for its obligations an amount of cash or
other specified assets (initial margin) which initially is typically 1% to 10%
of the face amount of the contract (but may be higher in some circumstances).
Additional cash or assets (variation margin) may be required to be deposited
thereafter on a daily basis as the mark to market value of the contract
fluctuates. The purchase of an option on financial futures involves payment of a
premium for the option without any further obligation on the part of a Fund. If
a Fund exercises an option on a futures contract it will be obligated to post
initial margin (and potential subsequent variation margin) for the resulting
futures position just as it would for any position. Futures contracts and
options thereon are generally settled by entering into an offsetting transaction
but there can be no assurance that the position can be offset prior to
settlement at an advantageous price, nor that delivery will occur.

      Each Fund will not enter into a futures contract or related option (except
for closing transactions) if, immediately thereafter, the sum of the amount of
its initial margin and premiums on open futures contracts and options thereon
would exceed 5% of a Fund's total assets (taken at current value); however, in
the case of an option that is in-the-money at the time of the purchase, the
in-the-money amount may be excluded in calculating the 5% limitation. The
segregation requirements with respect to futures contracts and options thereon
are described below.

Options on Securities Indices and Other Financial Indices. Each Fund also may
purchase and sell call and put options on securities indices and other financial
indices and in so doing can achieve many of the same objectives it would achieve
through the sale or purchase of options on individual securities or other
instruments. Options on securities indices and other financial indices are
similar to options on a security or other instrument except that, rather than
settling by physical delivery of the underlying instrument, they settle by cash
settlement, i.e., an option on an index gives the holder the right to receive,
upon exercise of the option, an amount of cash if the closing level of the index
upon which the option is based exceeds, in the case of a call, or is less than,
in the case of a put, the exercise price of the option (except if, in the case
of an OTC option, physical delivery is specified). This amount of cash is equal
to the excess of the closing price of the index over the exercise price of the
option, which also may be multiplied by a formula value. The seller of the
option is obligated, in return for the premium received, to make delivery of
this amount. The gain or loss on an option on an index depends on price
movements in the instruments making up the market, market segment, industry or
other composite on which the underlying index is based, rather than price
movements in individual securities, as is the case with respect to options on
securities.

Currency Transactions. Each Fund may engage in currency transactions with
Counterparties in order to hedge the value of portfolio holdings denominated in
particular currencies against fluctuations in relative value. Currency
transactions include forward currency contracts, exchange listed currency
futures, exchange listed and OTC options on currencies, and currency swaps. A
forward currency contract involves a privately negotiated obligation to purchase
or sell (with delivery generally required) a specific currency at a future date,
which may be any fixed number of days from the date of the contract agreed upon
by the parties, at a price set at the time of the contract. A currency swap is
an agreement to exchange cash flows based on the notional difference among two
or more currencies and operates similarly to an interest rate swap, which is
described below. Each Fund may enter into currency transactions with
Counterparties which have received (or the guarantors of the obligations which
have received) a credit rating of A-1 or P-1 by S&P or Moody's, respectively, or
that have an equivalent rating from a NRSRO or (except for OTC currency options)
are determined to be of equivalent credit quality by the Adviser.


                                       21
<PAGE>

      Each Fund's dealings in forward currency contracts and other currency
transactions such as futures, options, options on futures and swaps will be
limited to hedging involving either specific transactions or portfolio
positions. Transaction hedging is entering into a currency transaction with
respect to specific assets or liabilities of a Fund, which will generally arise
in connection with the purchase or sale of its portfolio securities or the
receipt of income therefrom. Position hedging is entering into a currency
transaction with respect to portfolio security positions denominated or
generally quoted in that currency.

      Each Fund will not enter into a transaction to hedge currency exposure to
an extent greater, after netting all transactions intended wholly or partially
to offset other transactions, than the aggregate market value (at the time of
entering into the transaction) of the securities held in its portfolio that are
denominated or generally quoted in or currently convertible into such currency,
other than with respect to proxy hedging as described below.

      Each Fund may also cross-hedge currencies by entering into transactions to
purchase or sell one or more currencies that are expected to decline in value
relative to other currencies to which a Fund has or in which a Fund expects to
have portfolio exposure.

      To reduce the effect of currency fluctuations on the value of existing or
anticipated holdings of portfolio securities, the Funds may also engage in proxy
hedging. Proxy hedging is often used when the currency to which a Fund's
portfolio is exposed is difficult to hedge or to hedge against the dollar. Proxy
hedging entails entering into a commitment or option to sell a currency whose
changes in value are generally considered to be correlated to a currency or
currencies in which some or all of a Fund's portfolio securities are or are
expected to be denominated, in exchange for U.S. dollars. The amount of the
commitment or option would not exceed the value of a Fund's securities
denominated in correlated currencies. For example, if the Adviser considers that
the Austrian schilling is correlated to the German deutschemark (the "D-mark"),
the Fund holds securities denominated in schillings and the Adviser believes
that the value of schillings will decline against the U.S. dollar, the Adviser
may enter into a commitment or option to sell D-marks and buy dollars. Currency
hedging involves some of the same risks and considerations as other transactions
with similar instruments. Currency transactions can result in losses to a Fund
if the currency being hedged fluctuates in value to a degree or in a direction
that is not anticipated. Further, there is the risk that the perceived
correlation between various currencies may not be present or may not be present
during the particular time that a Fund is engaging in proxy hedging. If a Fund
enters into a currency hedging transaction, that Fund will comply with the asset
segregation requirements described below.

Risks of Currency Transactions. Currency transactions are subject to risks
different from those of other portfolio transactions. Because currency control
is of great importance to the issuing governments and influences economic
planning and policy, purchases and sales of currency and related instruments can
be negatively affected by government exchange controls, blockages, and
manipulations or exchange restrictions imposed by governments. These can result
in losses to the Fund if it is unable to deliver or receive currency or funds in
settlement of obligations and could also cause hedges it has entered into to be
rendered useless, resulting in full currency exposure as well as incurring
transaction costs. Buyers and sellers of currency futures are subject to the
same risks that apply to the use of futures generally. Further, settlement of a
currency futures contract for the purchase of most currencies must occur at a
bank based in the issuing nation. Trading options on currency futures is
relatively new, and the ability to establish and close out positions on such
options is subject to the maintenance of a liquid market which may not always be
available. Currency exchange rates may fluctuate based on factors extrinsic to
that country's economy.

Combined Transactions. Each Fund may enter into multiple transactions, including
multiple options transactions, multiple futures transactions, multiple currency
transactions (including forward currency contracts) and multiple interest rate
transactions and any combination of futures, options, currency and interest rate
transactions ("component" transactions), instead of a single Strategic
Transaction, as part of a single or combined strategy when, in the opinion of
the Adviser, it is in the best interests of a Fund to do so. A combined
transaction will usually contain elements of risk that are present in each of
its component transactions. Although combined transactions are normally entered
into based on the Adviser's judgment that the combined strategies will reduce
risk or otherwise more effectively achieve the desired portfolio management
goal, it is possible that the combination will instead increase such risks or
hinder achievement of the portfolio management objective.

Swaps, Caps, Floors and Collars. Among the Strategic Transactions into which the
Funds may enter are interest rate, currency and index swaps and the purchase or
sale of related caps, floors and collars. The Funds expect to enter into


                                       22
<PAGE>

   
these transactions primarily to preserve a return or spread on a particular
investment or portion of their portfolios, to protect against currency
fluctuations, as a duration management technique or to protect against any
increase in the price of securities the Funds anticipate purchasing at a later
date. The Funds intend to use these transactions as hedges and not as
speculative investments and will not sell interest rate caps or floors where
they do not own securities or other instruments providing the income stream the
Funds may be obligated to pay. Interest rate swaps involve the exchange by a
Fund with another party of their respective commitments to pay or receive
interest, e.g., an exchange of floating rate payments for fixed rate payments
with respect to a notional amount of principal. A currency swap is an agreement
to exchange cash flows on a notional amount of two or more currencies based on
the relative value differential among them and an index swap is an agreement to
swap cash flows on a notional amount based on changes in the values of the
reference indices. The purchase of a cap entitles the purchaser to receive
payments on a notional principal amount from the party selling such cap to the
extent that a specified index exceeds a predetermined interest rate or amount.
The purchase of a floor entitles the purchaser to receive payments on a notional
principal amount from the party selling such floor to the extent that a
specified index falls below a predetermined interest rate or amount. A collar is
a combination of a cap and a floor that preserves a certain return within a
predetermined range of interest rates or values.
    

      Scudder Emerging Markets Growth Fund may also enter into equity swaps.
Equity swaps entail the exchanging of a security for an agreed-upon
consideration with a counterparty who holds the equity security. The Fund then
receives the benefit of ownership of a security that it may not otherwise be
able to obtain, due to lack of a custody relationship.

       

      Each Fund will usually enter into swaps on a net basis, i.e., the two
payment streams are netted out in a cash settlement on the payment date or dates
specified in the instrument, with a Fund receiving or paying, as the case may
be, only the net amount of the two payments. Inasmuch as these swaps, caps,
floors and collars are entered into for good faith hedging purposes, the Adviser
and the Funds believe such obligations do not constitute senior securities under
the 1940 Act and, accordingly, will not treat them as being subject to its
borrowing restrictions. Each Fund will not enter into any swap, cap, floor or
collar transaction unless, at the time of entering into such transaction, the
unsecured long-term debt of the Counterparty, combined with any credit
enhancements, is rated at least A by S&P or Moody's or has an equivalent rating
from a NRSRO or is determined to be of equivalent credit quality by the Adviser.
If there is a default by the Counterparty, the Fund may have contractual
remedies pursuant to the agreements related to the transaction. The swap market
has grown substantially in recent years with a large number of banks and
investment banking firms acting both as principals and as agents utilizing
standardized swap documentation. As a result, the swap market has become
relatively liquid. Caps, floors and collars are more recent innovations for
which standardized documentation has not yet been fully developed and,
accordingly, they are less liquid than swaps.

Eurodollar Instruments. Each Fund may make investments in Eurodollar
instruments. Eurodollar instruments are U.S. dollar-denominated futures
contracts or options thereon which are linked to the London Interbank Offered
Rate ("LIBOR"), although foreign currency-denominated instruments are available
from time to time. Eurodollar futures contracts enable purchasers to obtain a
fixed rate for the lending of funds and sellers to obtain a fixed rate for
borrowings. Each Fund might use Eurodollar futures contracts and options thereon
to hedge against changes in LIBOR, to which many interest rate swaps and fixed
income instruments are linked.

Risks of Strategic Transactions Outside the U.S. When conducted outside the
U.S., Strategic Transactions may not be regulated as rigorously as in the U.S.,
may not involve a clearing mechanism and related guarantees, and are subject to
the risk of governmental actions affecting trading in, or the prices of, foreign
securities, currencies and other instruments. The value of such positions also
could be adversely affected by: (i) other complex foreign political, legal and
economic factors, (ii) lesser availability than in the U.S. of data on which to
make trading decisions, (iii) delays in a Fund's ability to act upon economic
events occurring in foreign markets during non-business hours in the U.S., (iv)
the imposition of different exercise and settlement terms and procedures and
margin requirements than in the U.S., and (v) lower trading volume and
liquidity.

   
Use of Segregated and Other Special Accounts. Many Strategic Transactions, in
addition to other requirements, require that the Funds segregate cash or liquid
assets with their custodian, Brown Brothers Harriman & Company (the "Custodian")
to the extent Fund obligations are not otherwise "covered" through ownership of
the underlying security, financial instrument or currency. In general, either
the full amount of any obligation by a Fund to pay or deliver securities or
assets must be covered at all times by the securities, instruments or currency
required to be delivered, or,
    


                                       23
<PAGE>

   
subject to any regulatory restrictions, an amount of cash or liquid assets at
least equal to the current amount of the obligation must be segregated with the
custodian. The segregated assets cannot be sold or transferred unless equivalent
assets are substituted in their place or it is no longer necessary to segregate
them. For example, a call option written by a Fund will require that Fund to
hold the securities subject to the call (or securities convertible into the
needed securities without additional consideration) or to segregate cash or
liquid assets -sufficient to purchase and deliver the securities if the call is
exercised. A call option sold by a Fund on an index will require that Fund to
own portfolio securities which correlate with the index or to segregate liquid
assets equal to the excess of the index value over the exercise price on a
current basis. A put option written by a Fund requires that Fund to segregate
cash or liquid assets equal to the exercise price.

      Except when a Fund enters into a forward contract for the purchase or sale
of a security denominated in a particular currency, which requires no
segregation, a currency contract which obligates a Fund to buy or sell currency
will generally require a Fund to hold an amount of that currency or liquid
assets denominated in that currency equal to a Fund's obligations or to
segregate cash or liquid assets equal to the amount of a Fund's obligation.

      OTC options entered into by a Fund, including those on securities,
currency, financial instruments or indices and OCC issued and exchange listed
index options, will generally provide for cash settlement. As a result, when a
Fund sells these instruments it will only segregate an amount of cash or liquid
assets equal to its accrued net obligations, as there is no requirement for
payment or delivery of amounts in excess of the net amount. These amounts will
equal 100% of the exercise price in the case of a non cash-settled put, the same
as an OCC guaranteed listed option sold by a Fund, or the in-the-money amount
plus any sell-back formula amount in the case of a cash-settled put or call. In
addition, when a Fund sells a call option on an index at a time when the
in-the-money amount exceeds the exercise price, a Fund will segregate, until the
option expires or is closed out, cash or cash equivalents equal in value to such
excess. OCC issued and exchange listed options sold by a Fund other than those
above generally settle with physical delivery, and a Fund will segregate an
amount of cash or liquid assets equal to the full value of the option. OTC
options settling with physical delivery, or with an election of either physical
delivery or cash settlement will be treated the same as other options settling
with physical delivery.

      In the case of a futures contract or an option thereon, each Fund must
deposit initial margin and possible daily variation margin in addition to
segregating cash or liquid assets sufficient to meet its obligation to purchase
or provide securities or currencies, or to pay the amount owed at the expiration
of an index-based futures contract. Such liquid assets may consist of cash, cash
equivalents, liquid debt or equity securities or other acceptable assets.

      With respect to swaps, a Fund will accrue the net amount of the excess, if
any, of its obligations over its entitlements with respect to each swap on a
daily basis and will segregate an amount of cash or liquid assets having a value
equal to the accrued excess. Caps, floors and collars require segregation of
assets with a value equal to the Fund's net obligation, if any.

      Strategic Transactions may be covered by other means when consistent with
applicable regulatory policies. Each Fund may also enter into offsetting
transactions so that its combined position, coupled with any segregated assets,
equals its net outstanding obligation in related options and Strategic
Transactions. For example, a Fund could purchase a put option if the strike
price of that option is the same or higher than the strike price of a put option
sold by that Fund. Moreover, instead of segregating cash or liquid assets if a
Fund held a futures or forward contract, it could purchase a put option on the
same futures or forward contract with a strike price as high or higher than the
price of the contract held. Other Strategic Transactions may also be offset in
combinations. If the offsetting transaction terminates at the time of or after
the primary transaction no segregation is required, but if it terminates prior
to such time, cash or liquid assets equal to any remaining obligation would need
to be segregated.
    

       

Convertible Securities. Each Fund may invest in convertible securities which are
bonds, notes, debentures, preferred stocks, and other securities which are
convertible into common stocks. Investments in convertible securities can
provide income through interest and dividend payments and/or an opportunity for
capital appreciation by virtue of their conversion or exchange features. Latin
America Fund will limit its purchases of convertible securities to debt
securities convertible into common stocks.


                                       24
<PAGE>

      The convertible securities in which a Fund may invest may be converted or
exchanged at a stated or determinable exchange ratio into underlying shares of
common stock. The exchange ratio for any particular convertible security may be
adjusted from time to time due to stock splits, dividends, spin-offs, other
corporate distributions, or scheduled changes in the exchange ratio. Convertible
debt securities and convertible preferred stocks, until converted, have general
characteristics similar to both debt and equity securities. Although to a lesser
extent than with debt securities generally, the market value of convertible
securities tends to decline as interest rates increase and, conversely, tends to
increase as interest rates decline. In addition, because of the conversion or
exchange feature, the market value of convertible securities typically changes
as the market value of the underlying common stocks changes, and, therefore,
also tends to follow movements in the general market for equity securities. A
unique feature of convertible securities is that as the market price of the
underlying common stock declines, convertible securities tend to trade
increasingly on a yield basis and so may not experience market value declines to
the same extent as the underlying common stock. When the market price of the
underlying common stock increases, the prices of the convertible securities tend
to rise as a reflection of the value of the underlying common stock, although
typically not as much as the underlying common stock. While no securities
investments are without risk, investments in convertible securities generally
entail less risk than investments in common stock of the same issuer.

      As fixed income securities, convertible securities are investments which
provide for a stream of income (or in the case of zero coupon securities,
accretion of income) with generally higher yields than common stocks. Of course,
like all fixed income securities, there can be no assurance of income or
principal payments because the issuers of the convertible securities may default
on their obligations. Convertible securities generally offer lower yields than
non-convertible securities of similar quality because of their conversion or
exchange features.

      Convertible securities generally are subordinated to other similar but
non-convertible securities of the same issuer, although convertible bonds, as
corporate debt obligations, enjoy seniority in right of payment to all equity
securities, and convertible preferred stock is senior to common stock, of the
same issuer. However, because of the subordination feature, convertible bonds
and convertible preferred stock typically have lower ratings than similar
non-convertible securities.

      Convertible securities may be issued as fixed income obligations that pay
current income or as zero coupon notes and bonds, including Liquid Yield Option
Notes (LYONs). Zero coupon securities pay no cash income and are sold 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 purchase price and their value at maturity. Zero coupon
convertible securities offer the opportunity for capital appreciation as
increases (or decreases) in market value of such securities closely follow the
movements in the market value of the underlying common stock. Zero coupon
convertible securities generally are expected to be less volatile than the
underlying common stocks as they usually are issued with shorter maturities (15
years or less) and are issued with options and/or redemption features
exercisable by the holder of the obligation entitling the holder to redeem the
obligation and receive a defined cash payment.

Repurchase Agreements. Each Fund may enter into repurchase agreements with
member banks of the Federal Reserve System, any foreign bank or with any
domestic or foreign broker-dealer which is recognized as a reporting government
securities dealer if the creditworthiness of the bank or broker-dealer has been
determined by the Adviser to be at least as high as that of other obligations a
Fund may purchase.

      A repurchase agreement provides a means for each Fund to earn income on
funds for periods as short as overnight. It is an arrangement under which the
purchaser (i.e., the Funds) acquires a security ("Obligation") and the seller
agrees, at the time of sale, to repurchase the Obligation at a specified time
and price. Securities subject to a repurchase agreement are held in a segregated
account and the value of such securities kept at least equal to the repurchase
price on a daily basis. The repurchase price may be higher than the purchase
price, the difference being income to a Fund, or the purchase and repurchase
prices may be the same, with interest at a stated rate due to a Fund together
with the repurchase price upon repurchase. In either case, the income to a Fund
is unrelated to the interest rate on the Obligation itself. Obligations will be
held by the Custodian or in the Federal Reserve Book Entry system.

      For purposes of the 1940 Act a repurchase agreement is deemed to be a loan
from a Fund to the seller of the Obligation subject to the repurchase agreement
and is therefore subject to a Fund's investment restriction applicable to


                                       25
<PAGE>

loans. It is not clear whether a court would consider the Obligation purchased
by a Fund subject to a repurchase agreement as being owned by a Fund or as being
collateral for a loan by a Fund to the seller. In the event of the commencement
of bankruptcy or insolvency proceedings with respect to the seller of the
Obligation before repurchase of the Obligation under a repurchase agreement, a
Fund may encounter delay and incur costs before being able to sell the security.
Delays may involve loss of interest or decline in price of the Obligation. If
the court characterizes the transaction as a loan and a Fund has not perfected a
security interest in the Obligation, a Fund may be required to return the
Obligation to the seller's estate and be treated as an unsecured creditor of the
seller. As an unsecured creditor, a Fund would be at risk of losing some or all
of the principal and income involved in the transaction. As with any unsecured
debt instrument purchased for a Fund, the Adviser seeks to minimize the risk of
loss through repurchase agreements by analyzing the creditworthiness of the
obligor, in this case the seller of the Obligation. Apart from the risk of
bankruptcy or insolvency proceedings, there is also the risk that the seller may
fail to repurchase the Obligation, in which case a Fund may incur a loss if the
proceeds to that Fund of the sale to a third party are less than the repurchase
price. However, if the market value of the Obligation subject to the repurchase
agreement becomes less than the repurchase price (including interest), a Fund
will direct the seller of the Obligation to deliver additional securities so
that the market value of all securities subject to the repurchase agreement will
equal or exceed the repurchase price. It is possible that a Fund will be
unsuccessful in seeking to enforce the seller's contractual obligation to
deliver additional securities. A repurchase agreement with foreign banks may be
available with respect to government securities of the particular foreign
jurisdiction, and such repurchase agreements involve risks similar to repurchase
agreements with U.S. entities.

Repurchase Commitments. Latin America Fund may enter into repurchase commitments
with any party deemed creditworthy by the Adviser, including foreign banks and
broker/dealers, if the transaction is entered into for investment purposes and
the counterparty's creditworthiness is at least equal to that of issuers of
securities which the Fund may purchase. Such transactions may not provide the
Fund with collateral marked-to-market during the term of the commitment.

   
Borrowing. Each Fund may not borrow money , except as permitted under Federal
law. Each Fund will borrow only when the Adviser believes that borrowing will
benefit the Funds after taking into account considerations such as the costs of
the borrowing. Each Fund does not expect to borrow for investment purposes, to
increase return or leverage the portfolio. Borrowing by a Fund will involve
special risk considerations. Although the principal of a Fund's borrowings will
be fixed, a Fund's assets may change in value during the time a borrowing is
outstanding, thus increasing exposure to capital risk.
    

Illiquid Securities. Each Fund may occasionally purchase securities other than
in the open market. While such purchases may often offer attractive
opportunities for investment not otherwise available on the open market, the
securities so purchased are often "restricted securities" or "not readily
marketable," i.e., securities which cannot be sold to the public without
registration under the Securities Act of 1933 or the availability of an
exemption from registration (such as Rules 144 or 144A) or because they are
subject to other legal or contractual delays in or restrictions on resale.

      Generally speaking, restricted securities may be sold only to qualified
institutional buyers, or in a privately negotiated transaction to a limited
number of purchasers, or in limited quantities after they have been held for a
specified period of time and other conditions are met pursuant to an exemption
from registration, or in a public offering for which a registration statement is
in effect under the Securities Act of 1933. A Fund may be deemed to be an
"underwriter" for purposes of the Securities Act of 1933 when selling restricted
securities to the public, and in such event a Fund may be liable to purchasers
of such securities if such sale is made in violation of the 1933 Act or if the
registration statement prepared by the issuer, or the prospectus forming a part
of it, is materially inaccurate or misleading.

      Each Fund may invest up to 15% of its total net assets in illiquid
securities.

When-Issued Securities. Each Fund may from time to time purchase equity and debt
securities on a "when-issued" or "forward delivery" basis. The price of such
securities, which may be expressed in yield terms, is fixed at the time the
commitment to purchase is made, but delivery and payment for the when-issued or
forward delivery securities takes place at a later date. During the period
between purchase and settlement, no payment is made by a Fund to the issuer and
no interest accrues to a Fund. To the extent that assets of a Fund are held in
cash pending the settlement of a purchase of securities, a Fund would earn no
income; however, it is each Fund's intention to be fully invested to the extent


                                       26
<PAGE>

practicable and subject to the policies stated above. While when-issued or
forward delivery securities may be sold prior to the settlement date, each Fund
intends to purchase such securities with the purpose of actually acquiring them
unless a sale appears desirable for investment reasons. At the time a Fund makes
the commitment to purchase a security on a when-issued or forward delivery
basis, it will record the transaction and reflect the value of the security in
determining its net asset value. The market value of the when-issued or forward
delivery securities may be more or less than the purchase price. Each Fund does
not believe that its net asset value or income will be adversely affected by its
purchase of securities on a when-issued or forward delivery basis.

   
Lending of Portfolio Securities. Each Fund may seek to increase its income by
lending portfolio securities. Under present regulatory policies, including those
of the Board of Governors of the Federal Reserve System and the SEC, such loans
may be made to member firms of the Exchange, and would be required to be secured
continuously by collateral in cash, U.S. Government securities or other high
grade debt obligations maintained on a current basis at an amount at least equal
to the market value and accrued interest of the securities loaned. Each Fund
would have the right to call a loan and obtain the securities loaned on no more
than five days' notice. During the existence of a loan, a Fund would continue to
receive the equivalent of the interest paid by the issuer on the securities
loaned and would also receive compensation based on investment of the
collateral. As with other extensions of credit there are risks of delay in
recovery or even loss of rights in the collateral should the borrower of the
securities fail financially. However, the loans would be made only to firms
deemed by the Adviser to be of good standing, and when, in the judgment of the
Adviser, the consideration which can be earned currently from securities loans
of this type justifies the attendant risk. If a Fund determines to make
securities loans, the value of the securities loaned will not exceed 5% of the
value of a Fund's total assets at the time any loan is made.
    

Master/feeder structure

      The Board of Directors has the discretion to retain the current
distribution arrangement for the Fund while investing in a master fund in a
master/feeder structure as described below.

      A master/feeder fund structure is one in which a fund (a "feeder fund"),
instead of investing directly in a portfolio of securities, invests most or all
of its investment assets in a separate registered investment company (the
"master fund") with substantially the same investment objective and policies as
the feeder fund. Such a structure permits the pooling of assets of two or more
feeder funds, preserving separate identities or distribution channels at the
feeder fund level. Based on the premise that certain of the expenses of
operating an investment portfolio are relatively fixed, a larger investment
portfolio may eventually achieve a lower ratio of operating expenses to average
net assets. An existing investment company is able to convert to a feeder fund
by selling all of its investments, which involves brokerage and other
transaction costs and realization of a taxable gain or loss, or by contributing
its assets to the master fund and avoiding transaction costs and, if proper
procedures are followed, the realization of taxable gain or loss.

Investment Restrictions

   
      The fundamental policies of each Fund set forth below may not be changed
without the approval of a majority of each Fund's outstanding shares. As used in
this Statement of Additional Information, "majority of the Fund's outstanding
shares" means the lesser of (1) more than 50% of the outstanding shares of the
Fund or (2) 67% or more of the shares present at such meeting, if the holders of
more than 50% of the outstanding shares are present or represented by proxy.
    

Each Fund has elected to be classified as a non-diversified series of an
open-end investment company.

In addition, as a matter of fundamental policy, each Fund will not:

      (1)   borrow money, except as permitted under the 1940 Act, as amended,
            and as interpreted or modified by regulatory authority having
            jurisdiction, from time to time;

      (2)   issue senior securities, except as permitted under the 1940 Act, as
            amended, and as interpreted or modified by regulatory authority
            having jurisdiction, from time to time;


                                       27
<PAGE>

      (3)   concentrate its investments in a particular industry, as that term
            is used in the 1940 Act, as amended, and as interpreted or modified
            by regulatory authority having jurisdiction, from time to time;

      (4)   engage in the business of underwriting securities issued by others,
            except to the extent that the Fund may be deemed to be an
            underwriter in connection with the disposition of portfolio
            securities;

      (5)   purchase or sell real estate, which term does not include securities
            of companies which deal in real estate or mortgages or investments
            secured by real estate or interests therein, except that the Fund
            reserves freedom of action to hold and to sell real estate acquired
            as a result of the Fund's ownership of securities;

      (6)   purchase physical commodities or contracts relating to physical
            commodities; or

   
      (7)   make loans except as permitted under the Investment Company Act of
            1940, as amended, and as interpreted or modified by regulatory
            authority having jurisdiction, from time to time.

Nonfundamental policies may be changed without shareholder approval. As a matter
of nonfundamental policy, each Fund may not:
    

      (1)   borrow money in an amount greater than 5% of its total assets,
            except (i) for temporary or emergency purposes and (ii) by engaging
            in reverse repurchase agreements, dollar rolls, or other investments
            or transactions described in the Fund's registration statement which
            may be deemed to be borrowings;

      (2)   enter into either of reverse repurchase agreements or dollar rolls
            in an amount greater than 5% of its total assets;

      (3)   purchase securities on margin or make short sales, except (i) short
            sales against the box, (ii) in connection with arbitrage
            transactions, (iii) for margin deposits in connection with futures
            contracts, options or other permitted investments, (iv) that
            transactions in futures contracts and options shall not be deemed to
            constitute selling securities short, and (v) that the Fund may
            obtain such short-term credits as may be necessary for the clearance
            of securities transactions;

      (4)   purchase options, unless the aggregate premiums paid on all such
            options held by the Fund at any time do not exceed 20% of its total
            assets; or sell put options, if as a result, the aggregate value of
            the obligations underlying such put options would exceed 50% of its
            total assets;

      (5)   enter into futures contracts or purchase options thereon unless
            immediately after the purchase, the value of the aggregate initial
            margin with respect to such futures contracts entered into on behalf
            of the Fund and the premiums paid for such options on futures
            contracts does not exceed 5% of the fair market value of the Fund's
            total assets; provided that in the case of an option that is
            in-the-money at the time of purchase, the in-the-money amount may be
            excluded in computing the 5% limit;

      (6)   purchase warrants if as a result, such securities, taken at the
            lower of cost or market value, would represent more than 5% of the
            value of the Fund's total assets (for this purpose, warrants
            acquired in units or attached to securities will be deemed to have
            no value); and

      (7)   lend portfolio securities in an amount greater than 5% of its total
            assets.

       


                                       28
<PAGE>

                                    PURCHASES

   (See "Purchases" and "Transaction information" in the Funds' prospectuses.)

Additional Information About Opening An Account

   
      Clients having a regular investment counsel account with the Adviser or
its affiliates and members of their immediate families, officers and employees
of the Adviser or of any affiliated organization and their immediate families,
members of the National Association of Securities Dealers, Inc. ("NASD") and
banks may, if they prefer, subscribe initially for at least $2,500 of Fund
shares through Scudder Investor Services, Inc. (the "Distributor") by letter,
fax, TWX, or telephone.

      Shareholders of other Scudder funds who have submitted an account
application and have a certified Tax Identification Number, clients having a
regular investment counsel account with the Adviser or its affiliates and
members of their immediate families, officers and employees of the Adviser or of
any affiliated organization and their immediate families, members of the NASD,
and banks may open an account by wire. These investors must call 1-800-225-5163
to get an account number. During the call, the investor will be asked to
indicate the Fund name, amount to be wired ($2,500 minimum), name of bank or
trust company from which the wire will be sent, the exact registration of the
new account, the taxpayer identification or Social Security number, address and
telephone number. The investor must then call the bank to arrange a wire
transfer to The Scudder Funds, State Street Bank and Trust Company, Boston, MA
02110, ABA Number 011000028, DDA Account Number: 9903-5552. The investor must
give the Scudder fund name, account name and the new account number. Finally,
the investor must send the completed and signed application to the Fund
promptly.
    

      The minimum initial purchase amount is less than $2,500 under certain
special plan accounts.

Minimum balances

   
      Shareholders should maintain a share balance worth at least $2,500 ($1,000
for fiduciary accounts such as IRAs, and custodial accounts such as Uniform Gift
to Minor Act, and Uniform Trust to Minor Act accounts), which amount may be
changed by the Board of Directors. A shareholder may open an account with at
least $1,000 ($500 for fiduciary/custodial accounts), if an automatic investment
plan (AIP) of $100/month ($50/month for fiduciary/custodial accounts) is
established. Scudder group retirement plans and certain other accounts have
similar or lower minimum share balance requirements.

      Each Fund reserves the right, following 60 days' written notice to
applicable shareholders, to:

o     assess an annual $10 per Fund charge (with the Fee to be paid to the Fund)
      for any non-fiduciary/non-custodial account without an automatic
      investment plan (AIP) in place and a balance of less than $2,500; and

o     redeem all shares in Fund accounts below $1,000 where a reduction in value
      has occurred due to a redemption, exchange or transfer out of the account.
      The Fund will mail the proceeds of the redeemed account to the
      shareholder.

      Reductions in value that result solely from market activity will not
trigger an involuntary redemption. Shareholders with a combined household
account balance in any of the Scudder Funds of $100,000 or more, as well as
group retirement and certain other accounts will not be subject to a fee or
automatic redemption.

      Fiduciary (e.g., IRA or Roth IRA) and custodial accounts (e.g., UGMA or
UTMA) with balances below $100 are subject to automatic redemption following 60
days' written notice to applicable shareholders.
    

Additional Information About Making Subsequent Investments

   
      Subsequent purchase orders for $10,000 or more and for an amount not
greater than four times the value of the shareholder's account may be placed by
telephone, fax, etc. by established shareholders (except by Scudder Individual
    


                                       29
<PAGE>

   
Retirement Account (IRA), Scudder Horizon Plan, Scudder Profit Sharing and Money
Purchase Pension Plans, Scudder 401(k) and Scudder 403(b) Plan holders), members
of the NASD, and banks. Orders placed in this manner may be directed to any
office of the Distributor listed in the Fund's prospectus. A confirmation of the
purchase will be mailed out promptly following receipt of a request to buy.
Federal regulations require that payment be received within three business days.
If payment is not received within that time, the order is subject to
cancellation. In the event of such cancellation or cancellation at the
purchaser's request, the purchaser will be responsible for any loss incurred by
the Fund or the principal underwriter by reason of such cancellation. If the
purchaser is a shareholder, the Corporation shall have the authority, as agent
of the shareholder, to redeem shares in the account in order to reimburse the
Fund or the principal underwriter for the loss incurred. Net losses on such
transactions which are not recovered from the purchaser will be absorbed by the
principal underwriter. Any net profit on the liquidation of unpaid shares will
accrue to the Fund.
    

Additional Information About Making Subsequent Investments by QuickBuy

   
      Shareholders, whose predesignated bank account of record is a member of
the Automated Clearing House Network (ACH) and who have elected to participate
in the QuickBuy program, may purchase shares of the Fund by telephone. Through
this service shareholders may purchase up to $250,000. To purchase shares by
QuickBuy, shareholders should call before the close of regular trading on the
New York Stock Exchange, Inc. (the "Exchange"), normally 4 p.m. eastern time.
Proceeds in the amount of your purchase will be transferred from your bank
checking account 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. QuickBuy 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
QuickBuy and redeem them within seven days of the purchase, the 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. QuickBuy transactions are not available for most retirement
plan accounts. However, QuickBuy transactions are available for Scudder IRA
accounts.

      In order to request purchases by QuickBuy, shareholders must have
completed and returned to the Transfer Agent the application, including the
designation of a bank account from which the purchase payment will be debited.
New investors wishing to establish QuickBuy may so indicate on the application.
Existing shareholders who wish to add QuickBuy to their account may do so by
completing a QuickBuy Enrollment Form. After sending in an enrollment form,
shareholders should allow 15 days for this service to be available.

      Each Fund employs procedures, including recording telephone calls, testing
a caller's identity, and sending written confirmation of telephone transactions,
designed to give reasonable assurance that instructions communicated by
telephone are genuine, and to discourage fraud. To the extent that each 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.
    

Checks

      A certified check is not necessary, but checks are only accepted subject
to collection at full face value in U.S. funds and must be drawn on, or payable
through, a U.S. bank.

   
      If shares of a Fund are purchased by a check which proves to be
uncollectible, the Corporation reserves the right to cancel the purchase
immediately and the purchaser will be responsible for any loss incurred by the
Trust or the principal underwriter by reason of such cancellation. If the
purchaser is a shareholder, the Corporation will have the authority, as agent of
the shareholder, to redeem shares in the account in order to reimburse the Fund
or the principal underwriter for the loss incurred. Investors whose orders have
been canceled may be prohibited from, or restricted in, placing future orders in
any of the Scudder funds.
    


                                       30
<PAGE>

Wire Transfer of Federal Funds

   
      To obtain the net asset value determined as of the close of regular
trading on the Exchange on a selected day, your bank must forward federal funds
by wire transfer and provide the required account information so as to be
available to the Fund prior to the close of regular trading on the Exchange
(normally 4 p.m. eastern time).

      The bank sending an investor's federal funds by bank wire may charge for
the service. Presently, the Distributor pays a fee for receipt by State Street
Bank and Trust Company (the "Custodian") of "wired funds," but the right to
charge investors for this service is reserved.

      Boston banks are closed on certain holidays although the Exchange may be
open. These holidays include Columbus Day (the 2nd Monday in October) and
Veterans Day (November 11). Investors are not able to purchase shares by wiring
federal funds on such holidays because the Custodian is not open to receive such
federal funds on behalf of the Fund.
    

Share Price

   
      Purchases will be filled without sales charge at the net asset value next
computed after receipt of the application in good order. Net asset value
normally will be computed as of the close of regular trading on each day during
which the Exchange is open for trading. Orders received after the close of
regular trading on the Exchange will receive the next business day's net asset
value. If the order has been placed by a member of the NASD, other than the
Distributor, it is the responsibility of that member broker, rather than the
Fund, to forward the purchase order to Scudder Service Corporation (the
"Transfer Agent") by the close of regular trading on the Exchange.
    

Share Certificates

   
      Due to the desire of the Corporation's management to afford ease of
redemption, certificates will not be issued to indicate ownership in the Fund.
Share certificates now in a shareholder's possession may be sent to the Transfer
Agent for cancellation and credit to such shareholder's account. Shareholders
who prefer may hold the certificates in their possession until they wish to
exchange or redeem such shares.
    

Other Information

   
      Each Fund has authorized certain members of the NASD other than the
Distributor to accept purchase and redemption orders for the Fund's shares.
Those brokers may also designate other parties to accept purchase and redemption
orders on the Fund's behalf. Orders for purchase or redemption will be deemed to
have been received by the Fund when such brokers or their authorized designees
accept the orders. Subject to the terms of the contract between the Fund and the
broker, ordinarily orders will be priced at the Fund's net asset value next
computed after acceptance by such brokers or their authorized designees.
Further, if purchases or redemptions of the Funds' shares are arranged and
settlement is made at an investor's election through any other authorized NASD
member, that member may, at its discretion, charge a fee for that service. The
Board of Directors and the Distributor, also the Funds' principal underwriter,
each has the right to limit the amount of purchases by, and to refuse to sell
to, any person. The Directors and the Distributor may suspend or terminate the
offering of shares of a Fund at any time for any reason.

      The Board of Directors and the Distributor each has the right to limit,
for any reason, the amount of purchases by, and to refuse to, sell to any
person, and each may suspend or terminate the offering of shares of a Fund at
any time for any reasons.

      The Tax Identification Number section of the application must be completed
when opening an account. Applications and purchase orders without a correct
certified tax identification number and certain other certified information
(e.g. from exempt organizations, certification of exempt status ) will be
returned to the investor. Each Fund reserves the right, following 30 days'
notice, to redeem all shares in accounts without a correct certified Social
Security or tax identification number. A shareholder may avoid involuntary
redemption by providing each Fund with a tax identification number during the
30-day notice period.
    


                                       31
<PAGE>

   
The Corporation may issue shares at net asset value in connection with any
merger or consolidation with, or acquisition of the assets of, any investment
company or personal holding company, subject to the requirements of the 1940
Act.
    

                            EXCHANGES AND REDEMPTIONS

                (See "Exchanges and redemptions" and "Transaction
                    information" in the Funds' prospectuses.)

Exchanges

   
      Exchanges are comprised of a redemption from one Scudder fund and a
purchase into another Scudder fund. The purchase side of the exchange either may
be an additional investment into an existing account or may involve opening a
new account in the other fund. When an exchange involves a new account, the new
account will be established with the same registration, tax identification
number, address, telephone redemption option, "Scudder Automated Information
Line" (SAIL) transaction authorization and dividend option as the existing
account. Other features will not carry over automatically to the new account.
Exchanges to a new fund account must be for a minimum of $2,500. When an
exchange represents an additional investment into an existing account, the
account receiving the exchange proceeds must have identical registration,
address, and account options/features as the account of origin. Exchanges into
an existing account must be for $100 or more. If the account receiving the
exchange proceeds is to be different in any respect, the exchange request must
be in writing and must contain an original signature guarantee as described
under "Transaction Information-Redeeming shares-Signature guarantees" in each
Fund's prospectus.
    

      Exchange orders received before the close of regular trading on the
Exchange on any business day ordinarily will be executed at the respective net
asset values determined on that day. Exchange orders received after the close of
regular trading on the Exchange will be executed on the following business day.

      Investors may also request, at no extra charge, to have exchanges
automatically executed on a predetermined schedule from one Scudder fund to an
existing account in another Scudder fund at current net asset value through
Scudder's Automatic Exchange Program. Exchanges must be for a minimum of $50.
Shareholders may add this free feature over the phone or in writing. Automatic
exchanges will continue until the shareholder requests by phone or in writing to
have the feature removed, or until the originating account is depleted. The
Corporation and the Transfer Agent each reserves the right to suspend or
terminate the privilege of the Automatic Exchange Program at any time.

      There is no charge to the shareholder for any exchange described above.
However, shares that are exchanged from Emerging Markets Growth Fund may be
subject to the Fund's 2% redemption fee. (See "Special Redemption and Exchange
Information for Emerging Markets Growth Fund.") An exchange into another Scudder
fund is a redemption of shares, and therefore may result in tax consequences
(gain or loss) to the shareholder, and the proceeds of such an exchange may be
subject to backup withholding. (See "TAXES.")

      Investors currently receive the exchange privilege, including exchange by
telephone, automatically without having to elect it. Each Fund employ
procedures, including recording telephone calls, testing a caller's identity,
and sending written confirmation of telephone transactions, designed to give
reasonable assurance that instructions communicated by telephone are genuine,
and to discourage fraud. To the extent that the Funds do not follow such
procedures, they 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 they reasonably believe to be
genuine. The Funds and the Transfer Agent each reserves the right to suspend or
terminate the privilege of exchanging by telephone or fax at any time.

   
      The Scudder funds into which investors may make an exchange are listed
under "THE SCUDDER FAMILY OF FUNDS" herein. Before making an exchange,
shareholders should obtain from the Distributor a prospectus of the Scudder fund
into which the exchange is being contemplated. The exchange privilege may not be
available for certain Scudder Funds or classes thereof. For more information,
please call 1-800-225-5163.
    

      Scudder retirement plans may have different exchange requirements. Please
refer to appropriate plan literature.


                                       32
<PAGE>

Special Redemption and Exchange Information for Scudder Emerging Markets Growth
Fund

      In general, shares of the Fund may be exchanged or redeemed at net asset
value. However, shares of the Fund held for less than one year are redeemable at
a price equal to 98% of the then current net asset value per share. This 2%
discount, referred to in the prospectus and this statement of additional
information as a redemption fee, directly affects the amount a shareholder who
is subject to the discount receives upon exchange or redemption. It is intended
to encourage long-term investment in the 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. The Fund reserves
the right to modify the terms of or terminate this fee at any time.

   
      The redemption discount will not be applied to (a) a redemption of shares
of the Fund outstanding for one year or more, (b) 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, (c) a redemption
of reinvestment shares (i.e., shares purchased through the reinvestment of
dividends or capital gains distributions paid by the Fund), (d) a redemption of
shares due to the death of the registered shareholder of a Fund account, or, due
to the death of all registered shareholders of a Fund account with more than one
registered shareholder, (i.e., joint tenant account), upon receipt by Scudder
Service Corporation of appropriate written instructions and documentation
satisfactory to Scudder Service Corporation, or (e) a redemption of shares by
the Fund upon exercise of its right to liquidate accounts (i) falling below the
minimum account size by reason of shareholder redemptions or (ii) when the
shareholder has failed to provide tax identification information. However, if
shares are purchased for a retirement plan account 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
waiver does not apply to IRA and SEP-IRA accounts. For this purpose and without
regard to the shares actually redeemed, shares will be treated as redeemed as
follows: first, reinvestment shares; second, purchased shares held one year or
more; and third, purchased shares held for less than one year. Finally, if a
redeeming shareholder acquires Fund shares through a transfer from another
shareholder, applicability of the discount, if any, will be determined by
reference to the date the shares were originally purchased, and not from the
date of transfer between shareholders.
    

Redemption by Telephone

      Shareholders currently receive the right, automatically without having to
elect it, to redeem by telephone up to $100,000 and have the proceeds mailed to
their address of record. Shareholders may request to have the proceeds mailed or
wired to their predesignated bank account. In order to request redemptions by
telephone, shareholders must have completed and returned to the Transfer Agent
the application, including the designation of a bank account to which the
redemption proceeds are to be sent.

      (a)   NEW INVESTORS wishing to establish telephone redemption to a
            predesignated bank account must complete the appropriate section on
            the application.

      (b)   EXISTING SHAREHOLDERS (except those who are Scudder IRA, Scudder
            Pension and Profit-Sharing, Scudder 401(k) and Scudder 403(b)
            Planholders) who wish to establish telephone redemption to a
            predesignated bank account or who want to change the bank account
            previously designated to receive redemption proceeds should either
            return a Telephone Redemption Option Form (available upon request)
            or send a letter identifying the account and specifying the exact
            information to be changed. The letter must be signed exactly as the
            shareholder's name(s) appears on the account. An original signature
            and an original signature guarantee are required for each person in
            whose name the account is registered.

      If a request for redemption to a shareholder's bank account is made by
telephone or fax, payment will be by Federal Reserve bank wire to the bank
account designated on the application, unless a request is made that the
redemption check be mailed to the designated bank account. There will be a $5
charge for all wire redemptions.


                                       33
<PAGE>

Note: Investors designating a savings bank to receive their telephone redemption
proceeds are advised that if the savings bank is not a participant in the
Federal Reserve System, redemption proceeds must be wired through a commercial
bank which is a correspondent of the savings bank. As this may delay receipt by
the shareholder's account, it is suggested that investors wishing to use a
savings bank discuss wire procedures with their bank and submit any special wire
transfer information with the telephone redemption authorization. If appropriate
wire information is not supplied, redemption proceeds will be mailed to the
designated bank.

      Each Fund employs procedures, including recording telephone calls, testing
a caller's identity, and sending written confirmation of telephone transactions,
designed to give reasonable assurance that instructions communicated by
telephone are genuine, and to discourage fraud. To the extent that the Funds do
not follow such procedures, they 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.

      Redemption requests by telephone (technically a repurchase by agreement
between a Fund and the shareholder) of shares purchased by check will not be
accepted until the purchase check has cleared which may take up to seven
business days.

Redemption by QuickSell

   
      Shareholders, whose predesignated bank account of record is a member of
the Automated Clearing House Network (ACH) and who have elected to participate
in the QuickSell program may sell shares of the Fund by telephone. Redemptions
must be for at least $250. Proceeds in the amount of your redemption will be
transferred to your bank checking account two or three business days following
your call. For requests received by the close of regular trading on the
Exchange, normally 4 p.m. eastern time, shares will be redeemed at the net asset
value per share calculated at the close of trading on the day of your call.
QuickSell 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. QuickSell transactions are not available for Scudder
IRA accounts and most other retirement plan accounts.

      In order to request redemptions by QuickSell, shareholders must have
completed and returned to the Transfer Agent the application, including the
designation of a bank account. New investors wishing to establish QuickSell may
so indicate on the application. Existing shareholders who wish to add QuickSell
to their account may do so by completing an QuickSellEnrollment Form. After
sending in an enrollment form, shareholders should allow for 15 days for this
service to be available.
    

      The Fund employs procedures, including recording telephone calls, testing
a caller's identity, and sending written confirmation of telephone transactions,
designed to give reasonable assurance that instructions communicated by
telephone are genuine, and to discourage fraud. To the extent that the Fund does
not follow such procedures, it may be liable for losses due to unauthorized or
fraudulent telephone instructions. The Fund will not be liable for acting upon
instructions communicated by telephone that it reasonably believes to be
genuine.

Redemption by Mail or Fax

      In order to ensure proper authorization before redeeming shares, the
Transfer Agent may request documents such as, but not restricted to, stock
powers, trust instruments, certificates of death, appointments as executor,
certificates of corporate authority and waivers of tax required in some states
when settling estates.

   
      It is suggested that shareholders holding shares registered in other than
individual names contact the Transfer Agent prior to any redemptions to ensure
that all necessary documents accompany the request. When shares are held in the
name of a corporation, trust, fiduciary agent, attorney or partnership, the
Transfer Agent requires, in addition to the stock power, certified evidence of
authority to sign. These procedures are for the protection of shareholders and
should be followed to ensure prompt payment. Redemption requests must not be
conditional as to date or price of the redemption. Proceeds of a redemption will
be sent within seven business days after receipt by the Transfer Agent of a
request for redemption that complies with the above requirements. Delays of more
than seven days of payment for shares tendered for repurchase or redemption may
result, but only until the purchase check has cleared.
    


                                       34
<PAGE>

      The requirements for IRA redemptions are different from those for regular
accounts. For more information call 1-800-225-5163.

Redemption-in-Kind

      The Corporation 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 a Fund's net asset value
(a redemption-in-kind). If payment is made in securities, a shareholder may
incur transaction expenses in converting these securities into cash. The
Corporation has elected, however, to be governed by Rule 18f-1 under the 1940
Act as a result of which each 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 that Fund at the beginning of the
period.

Other Information

   
      Clients, officers or employees of the Adviser or of an affiliated
organization, and members of such clients', officers' or employees' immediate
families, banks and members of the NASD may direct repurchase requests to the
Fund through Scudder Investor Services, Inc. at Two International Place, Boston,
Massachusetts 02110-4103 by letter, fax, TWX, or telephone. A two-part
confirmation will be mailed out promptly after receipt of the repurchase
request. A written request in good order with a proper original signature
guarantee, as described in the Funds' Prospectuses under "Transaction
information-Signature guarantees," should be sent with a copy of the invoice to
Scudder Funds, c/o Scudder Confirmed Processing, Two International Place,
Boston, Massachusetts 02110-4103. Failure to deliver shares or required
documents (see above) by the settlement date may result in cancellation of the
trade and the shareholder will be responsible for any loss incurred by the Fund
or the principal underwriter by reason of such cancellation. Net losses on such
transactions which are not recovered from the shareholder will be absorbed by
the principal underwriter. Any net gains so resulting will accrue to the Fund.
For this group, repurchases will be carried out at the net asset value next
computed after such repurchase requests have been received. The arrangements
described in this paragraph for repurchasing shares are discretionary and may be
discontinued at any time.
    

      If a shareholder redeems all shares in the account after the record date
of a dividend, the shareholder receives in addition to the net asset value
thereof, all declared but unpaid dividends thereon. The value of shares redeemed
or repurchased may be more or less than the shareholder's cost depending on the
net asset value at the time of redemption or repurchase. Each Fund does not
impose a repurchase charge, although a wire charge may be applicable for
redemption proceeds wired to an investor's bank account. Redemption of shares,
including redemptions undertaken to effect an exchange for shares of another
Scudder fund, may result in tax consequences (gain or loss) to the shareholder
and the proceeds of such redemptions may be subject to backup withholding. (See
"TAXES.")

      Shareholders who wish to redeem shares from Special Plan Accounts should
contact the employer, trustee or custodian of the Plan for the requirements.

      The determination of net asset value and a shareholder's right to redeem
shares and to receive payment may be suspended at times (a) during which the
Exchange is closed, other than customary weekend and holiday closings, (b)
during which trading on the Exchange is restricted for any reason, (c) during
which an emergency exists as a result of which disposal by a Fund of securities
owned by it is not reasonably practicable or it is not reasonably practicable
for a Fund fairly to determine the value of its net assets, or (d) during which
the SEC by order permits a suspension of the right of redemption or a
postponement of the date of payment or of redemption; provided that applicable
rules and regulations of the SEC (or any succeeding governmental authority)
shall govern as to whether the conditions prescribed in (b), (c) or (d) exist.

       


                                       35
<PAGE>

                   FEATURES AND SERVICES OFFERED BY THE FUNDS

            (See "Shareholder benefits" in the Funds' prospectuses.)

The Pure No-Load(TM) Concept

   
      Investors are encouraged to be aware of the full ramifications of mutual
fund fee structures, and of how Scudder distinguishes its Scudder Family of
Funds from the vast majority of mutual funds available today. The primary
distinction is between load and no-load funds.
    

      Load funds generally are defined as mutual funds that charge a fee for the
sale and distribution of fund shares. There are three types of loads: front-end
loads, back-end loads, and asset-based Rule 12b-1 fees. 12b-1 fees are
distribution-related fees charged against fund assets and are distinct from
service fees, which are charged for personal services and/or maintenance of
shareholder accounts. Asset-based sales charges and service fees are typically
paid pursuant to distribution plans adopted under 12b-1 under the 1940 Act.

      A front-end load is a sales charge, which can be as high as 8.50% of the
amount invested. A back-end load is a contingent deferred sales charge, which
can be as high as 8.50% of either the amount invested or redeemed. The maximum
front-end or back-end load varies, and depends upon whether or not a fund also
charges a 12b-1 fee and/or a service fee or offers investors various
sales-related services such as dividend reinvestment. The maximum charge for a
12b-1 fee is 0.75% of a fund's average annual net assets, and the maximum charge
for a service fee is 0.25% of a fund's average annual net assets.

      A no-load fund does not charge a front-end or back-end load, but can
charge a small 12b-1 fee and/or service fee against fund assets. Under the
National Association of Securities Dealers Conduct Rules, a mutual fund can call
itself a "no-load" fund only if the 12b-1 fee and/or service fee does not exceed
0.25% of a fund's average annual net assets.

   
      Because funds in the Scudder Family of Funds do not pay any asset-based
sales charges or service fees, Scudder developed and trademarked the phrase pure
no-load(TM) to distinguish Scudder funds from other no-load mutual funds.
Scudder pioneered the no-load concept when it created the nation's first no-load
fund in 1928, and later developed the nation's first family of no-load mutual
funds.

      The following chart shows the potential long-term advantage of investing
$10,000 in a Scudder Family of Funds pure no-load fund over investing the same
amount in a load fund that collects an 8.50% front-end load, a load fund that
collects only a 0.75% 12b-1 and/or service fee, and a no-load fund charging only
a 0.25% 12b-1 and/or service fee. The hypothetical figures in the chart show the
value of an account assuming a constant 10% rate of return over the time periods
indicated and reinvestment of dividends and distributions.
    

================================================================================
                     Scudder                                     No-Load Fund
                Pure No-Load(TM)  8.50% Load    Load Fund with    with 0.25%
     YEARS            Fund            Fund      0.75% 12b-1 Fee   12b-1 Fee
- --------------------------------------------------------------------------------

       10            $25,937        $23,733         $24,222        $25,354
- --------------------------------------------------------------------------------

       15             41,772         38,222          37,698         40,371
- --------------------------------------------------------------------------------

       20             67,275         61,557          58,672         64,282
===============================================================================


                                       36
<PAGE>

      Investors are encouraged to review the fee tables on page 2 of each Fund's
prospectus for more specific information about the rates at which management
fees and other expenses are assessed.

Internet access

World Wide Web Site -- The address of the Scudder Funds site is
http://funds.scudder.com. The site offers guidance on global investing and
developing strategies to help meet financial goals and provides access to the
Scudder investor relations department via e-mail. The site also enables users to
access or view fund prospectuses and profiles with links between summary
information in Profiles and details in the Prospectus. Users can fill out new
account forms on-line, order free software, and request literature on funds.

      The site is designed for interactivity, simplicity and maneuverability. A
section entitled "Planning Resources" provides information on asset allocation,
tuition, and retirement planning to users who fill out interactive "worksheets."
Investors can easily establish a "Personal Page," that presents price
information, updated daily, on funds they're interested in following. The
"Personal Page" also offers easy navigation to other parts of the site. Fund
performance data from both Scudder and Lipper Analytical Services, Inc. are
available on the site. Also offered on the site is a news feature, which
provides timely and topical material on the Scudder Funds.

      Scudder has communicated with shareholders and other interested parties on
Prodigy since 1988 and has participated since 1994 in GALT's Networth "financial
marketplace" site on the Internet. The firm made Scudder Funds information
available on America Online in early 1996.

Account Access -- Scudder is among the first mutual fund families to allow
shareholders to manage their fund accounts through the World Wide Web. Scudder
Fund shareholders can view a snapshot of current holdings, review account
activity and move assets between Scudder Fund accounts.

   
      Scudder's personal portfolio capabilities - known as SEAS (Scudder
Electronic Account Services) -- are accessible only by current Scudder Fund
shareholders who have set up a Personal Page on Scudder's Web site. Using a
secure Web browser, shareholders sign on to their account with their Social
Security number and their SAIL password. As an additional security measure,
users can change their current password or disable access to their portfolio
through the World Wide Web.
    

      An Account Activity option reveals a financial history of transactions for
an account, with trade dates, type and amount of transaction, share price and
number of shares traded. For users who wish to trade shares between Scudder
Funds, the Fund Exchange option provides a step-by-step procedure to exchange
shares among existing fund accounts or to new Scudder Fund accounts.

      A Call Me(TM) feature enables users to speak with a Scudder Investor
Relations telephone representative while viewing their account on the Web site.
In order to use the Call Me(TM) feature, an individual must have two phone lines
and enter on the screen the phone number that is not being used to connect to
the Internet. They are connected to the next available Scudder Investor
Relations representative from 8 a.m. to 8 p.m. eastern time.

Dividend and Capital Gain Distribution Options

      Investors have freedom to choose whether to receive cash or to reinvest
any dividends from net investment income or distributions from realized capital
gains in additional shares of the Fund. A change of instructions for the method
of payment must be given to the Transfer Agent in writing at least five days
prior to a dividend record date. Shareholders may change their dividend option
by calling 1-800-225-5163 or by sending written instructions to the Transfer
Agent. Please include your account number with your written request. See "How to
Contact Scudder" in the Funds' Prospectuses for the address.

      Reinvestment is usually made at the closing net asset value determined on
the business day following the record date. Investors may leave standing
instructions with the Transfer Agent designating their option for either
reinvestment or cash distribution of any income dividends or capital gains
distributions. If no election is made, dividends and distributions will be
invested in additional shares of the Fund.


                                       37
<PAGE>

      Investors may also have dividends and distributions automatically
deposited in their predesignated bank account through Scudder's
DistributionsDirect Program. Shareholders who elect to participate in the
DistributionsDirect Program, and whose predesignated checking account of record
is with a member bank of the Automated Clearing House Network (ACH) can have
income and capital gain distributions automatically deposited to their personal
bank account usually within three business days after the Fund pays its
distribution. A DistributionsDirect request form can be obtained by calling
1-800-225-5163. Confirmation statements will be mailed to shareholders as
notification that distributions have been deposited.

      Investors choosing to participate in Scudder's Automatic Withdrawal Plan
must reinvest any dividends or capital gains. For most retirement plan accounts,
the reinvestment of dividends and capital gains is also required.

Scudder Investor Centers

      Investors may visit any of the Centers maintained by the Distributor
listed in the Funds' prospectuses. The Centers are designed to provide
individuals with services during any business day. Investors may pick up
literature or find assistance with opening an account, adding monies or special
options to existing accounts, making exchanges within the Scudder Family of
Funds, redeeming shares or opening retirement plans. Checks should not be mailed
to the Centers but should be mailed to "The Scudder Funds" at the address listed
under "How to contact Scudder" in the prospectuses.

Reports to Shareholders

      The Corporation issues to its shareholders audited semiannual financial
statements, including a list of investments held and statements of assets and
liabilities, operations, changes in net assets and financial highlights. The
Corporation presently intends to distribute to shareholders informal quarterly
reports during the intervening quarters, containing a statement of the
investments of a Fund. Each distribution will be accompanied by a brief
explanation of the source of the distribution.

Transaction Summaries

      Annual summaries of all transactions in each Fund account are available to
shareholders. The summaries may be obtained by calling 1-800-225-5163.

                           THE SCUDDER FAMILY OF FUNDS

      (See "Investment products and services" in the Funds' prospectuses.)

   
      The Scudder Family of Funds is America's first family of mutual funds and
the nation's oldest family of no-load mutual funds. To assist investors in
choosing a Scudder fund, descriptions of the Scudder funds' objectives follow.
    

MONEY MARKET

      Scudder U.S. Treasury Money Fund seeks to provide safety, liquidity and
      stability of capital and, consistent therewith, to provide current income.
      The Fund seeks to maintain a constant net asset value of $1.00 per share,
      although in certain circumstances this may not be possible, and declares
      dividends daily.

      Scudder Cash Investment Trust ("SCIT") seeks to maintain the stability of
      capital and, consistent therewith, to maintain the liquidity of capital
      and to provide current income. SCIT seeks to maintain a constant net asset
      value of $1.00 per share, although in certain circumstances this may not
      be possible, and declares dividends daily.

      Scudder Money Market Series seeks to provide investors with as high a
      level of current income as is consistent with its investment polices and
      with preservation of capital and liquidity. The Fund seeks to maintain a
      constant net asset value of $1.00 per share, but there is no assurance
      that it will be able to do so. The institutional class of shares of this
      Fund is not within the Scudder Family of Funds.


                                       38
<PAGE>

      Scudder Government Money Market Series seeks to provide investors with as
      high a level of current income as is consistent with its investment
      polices and with preservation of capital and liquidity. The Fund seeks to
      maintain a constant net asset value of $1.00 per share, but there is no
      assurance that it will be able to do so. The institutional class of shares
      of this Fund is not within the Scudder Family of Funds.

TAX FREE MONEY MARKET

      Scudder Tax Free Money Fund ("STFMF") seeks to provide income exempt from
      regular federal income tax and stability of principal through investments
      primarily in municipal securities. STFMF seeks to maintain a constant net
      asset value of $1.00 per share, although in extreme circumstances this may
      not be possible.

      Scudder Tax Free Money Market Series seeks to provide investors with as
      high a level of current income that cannot be subjected to federal income
      tax by reason of federal law as is consistent with its investment policies
      and with preservation of capital and liquidity. The Fund seeks to maintain
      a constant net asset value of $1.00 per share, but there is no assurance
      that it will be able to do so. The institutional class of shares of this
      Fund is not within the Scudder Family of Funds.

      Scudder California Tax Free Money Fund* seeks stability of capital and the
      maintenance of a constant net asset value of $1.00 per share while
      providing California taxpayers income exempt from both California State
      personal and regular federal income taxes. The Fund is a professionally
      managed portfolio of high quality, short-term California municipal
      securities. There can be no assurance that the stable net asset value will
      be maintained.

      Scudder New York Tax Free Money Fund* seeks stability of capital and the
      maintenance of a constant net asset value of $1.00 per share, while
      providing New York taxpayers income exempt from New York State and New
      York City personal income taxes and regular federal income tax. There can
      be no assurance that the stable net asset value will be maintained.

TAX FREE

      Scudder Limited Term Tax Free Fund seeks to provide as high a level of
      income exempt from regular federal income tax as is consistent with a high
      degree of principal stability.

      Scudder Medium Term Tax Free Fund seeks to provide a high level of income
      free from regular federal income taxes and to limit principal fluctuation.
      The Fund will invest primarily in high-grade, intermediate-term bonds.

      Scudder Managed Municipal Bonds seeks to provide income exempt from
      regular federal income tax primarily through investments in high-grade,
      long-term municipal securities.

      Scudder High Yield Tax Free Fund seeks to provide a high level of interest
      income, exempt from regular federal income tax, from an actively managed
      portfolio consisting primarily of investment-grade municipal securities.

      Scudder California Tax Free Fund* seeks to provide California taxpayers
      with income exempt from both California State personal income and regular
      federal income tax. The Fund is a professionally managed portfolio
      consisting primarily of California municipal securities.

      Scudder Massachusetts Limited Term Tax Free Fund* seeks to provide
      Massachusetts taxpayers with as high a level of income exempt from
      Massachusetts personal income tax and regular federal income tax, as is
      consistent with a high degree of price stability, through a professionally
      managed portfolio consisting primarily of investment-grade municipal
      securities.

- ----------
*     These funds are not available for sale in all states. For information,
      contact Scudder Investor Services, Inc.


                                       39
<PAGE>

      Scudder Massachusetts Tax Free Fund* seeks to provide Massachusetts
      taxpayers with income exempt from both Massachusetts personal income tax
      and regular federal income tax. The Fund is a professionally managed
      portfolio consisting primarily of investment-grade municipal securities.

      Scudder New York Tax Free Fund* seeks to provide New York taxpayers with
      income exempt from New York State and New York City personal income taxes
      and regular federal income tax. The Fund is a professionally managed
      portfolio consisting primarily of New York municipal securities.

      Scudder Ohio Tax Free Fund* seeks to provide Ohio taxpayers with income
      exempt from both Ohio personal income tax and regular federal income tax.
      The Fund is a professionally managed portfolio consisting primarily of
      investment-grade municipal securities.

      Scudder Pennsylvania Tax Free Fund* seeks to provide Pennsylvania
      taxpayers with income exempt from both Pennsylvania personal income tax
      and regular federal income tax. The Fund is a professionally managed
      portfolio consisting primarily of investment-grade municipal securities.

U.S. INCOME

      Scudder Short Term Bond Fund seeks to provide a high level of income
      consistent with a high degree of principal stability by investing
      primarily in high quality short-term bonds.

      Scudder Zero Coupon 2000 Fund seeks to provide as high an investment
      return over a selected period as is consistent with investment in U.S.
      Government securities and the minimization of reinvestment risk.

      Scudder GNMA Fund seeks to provide high current income primarily from U.S.
      Government guaranteed mortgage-backed (Ginnie Mae) securities.

      Scudder Income Fund seeks a high level of income, consistent with the
      prudent investment of capital, through a flexible investment program
      emphasizing high-grade bonds.

      Scudder High Yield Bond Fund seeks a high level of current income and,
      secondarily, capital appreciation through investment primarily in below
      investment-grade domestic debt securities.

GLOBAL INCOME

      Scudder Global Bond Fund seeks to provide total return with an emphasis on
      current income by investing primarily in high-grade bonds denominated in
      foreign currencies and the U.S. dollar. As a secondary objective, the Fund
      will seek capital appreciation.

      Scudder International Bond Fund seeks to provide income primarily by
      investing in a managed portfolio of high-grade international bonds. As a
      secondary objective, the Fund seeks protection and possible enhancement of
      principal value by actively managing currency, bond market and maturity
      exposure and by security selection.

      Scudder Emerging Markets Income Fund seeks to provide high current income
      and, secondarily, long-term capital appreciation through investments
      primarily in high-yielding debt securities issued by governments and
      corporations in emerging markets.

ASSET ALLOCATION

      Scudder Pathway Series: Conservative Portfolio seeks primarily current
      income and secondarily long-term growth of capital. In pursuing these
      objectives, the Portfolio, under normal market conditions, will invest
      substantially in a select mix of Scudder bond mutual funds, but will have
      some exposure to Scudder equity mutual funds.

- ----------
*     These funds are not available for sale in all states. For information,
      contact Scudder Investor Services, Inc.


                                       40
<PAGE>

      Scudder Pathway Series: Balanced Portfolio seeks to provide investors with
      a balance of growth and income by investing in a select mix of Scudder
      money market, bond and equity mutual funds.

      Scudder Pathway Series: Growth Portfolio seeks to provide investors with
      long-term growth of capital. In pursuing this objective, the Portfolio
      will, under normal market conditions, invest predominantly in a select mix
      of Scudder equity mutual funds designed to provide long-term growth.

      Scudder Pathway Series: International Portfolio seeks maximum total return
      for investors. Total return consists of any capital appreciation plus
      dividend income and interest. To achieve this objective, the Portfolio
      invests in a select mix of established international and global Scudder
      funds.

U.S. GROWTH AND INCOME

      Scudder Balanced Fund seeks a balance of growth and income from a
      diversified portfolio of equity and fixed-income securities. The Fund also
      seeks long-term preservation of capital through a quality-oriented
      approach that is designed to reduce risk.

      Scudder Growth and Income Fund seeks long-term growth of capital, current
      income, and growth of income.

      Scudder S&P 500 Index Fund seeks to provide investment results that,
      before expenses, correspond to the total return of common stocks publicly
      traded in the United States, as represented by the Standard & Poor's 500
      Composite Stock Price Index.

   
      Scudder Real Estate Investment Fund seeks long-term capital growth and
      current income by investing primarily in equity securities of companies in
      the real estate industry.
    

U.S. GROWTH

   Value

      Scudder Large Company Value Fund seeks to maximize long-term capital
      appreciation through a value-driven investment program.

      Scudder Value Fund seeks long-term growth of capital through investment in
      undervalued equity securities.

      Scudder Small Company Value Fund invests for long-term growth of capital
      by seeking out undervalued stocks of small U.S. companies.

      Scudder Micro Cap Fund seeks long-term growth of capital by investing
      primarily in a diversified portfolio of U.S. micro-capitalization
      ("micro-cap") common stocks.

   Growth

   
      Scudder Classic Growth Fund seeks to provide long-term growth of capital
      with reduced share price volatility compared to other growth mutual funds.
    

      Scudder Large Company Growth Fund seeks to provide long-term growth of
      capital through investment primarily in the equity securities of seasoned,
      financially strong U.S. growth companies.

      Scudder Development Fund seeks long-term growth of capital by investing
      primarily in securities of small and medium-size growth companies.

      Scudder 21st Century Growth Fund seeks long-term growth of capital by
      investing primarily in the securities of emerging growth companies poised
      to be leaders in the 21st century.


                                       41
<PAGE>

   
SCUDDER CHOICE SERIES

      Scudder Financial Services Fund seeks long-term growth of capital
      primarily through investment in equity securities of financial services
      companies.

      Scudder Health Care Fund seeks long-term growth of capital primarily
      through investment in securities of companies that are engaged in the
      development, production or distribution of products or services related to
      the treatment or prevention of diseases and other medical problems.

      Scudder Technology Fund seeks long-term growth of capital primarily
      through investment in securities of companies engaged in the development,
      production or distribution of technology-related products or services.
    

GLOBAL GROWTH

   Worldwide

      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.

      Scudder International Growth and Income Fund seeks long-term growth of
      capital and current income primarily from foreign equity securities.

      Scudder International Fund seeks long-term growth of capital primarily
      through a diversified portfolio of marketable foreign equity securities.

      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.

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

      Scudder Gold Fund seeks maximum return (principal change and income)
      consistent with investing in a portfolio of gold-related equity securities
      and gold.

   Regional

      Scudder Greater Europe Growth Fund seeks long-term growth of capital
      through investments primarily in the equity securities of European
      companies.

      Scudder Pacific Opportunities Fund seeks long-term growth of capital
      through investment primarily in the equity securities of Pacific Basin
      companies, excluding Japan.

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

      The Japan Fund, Inc. seeks long-term capital appreciation by investing
      primarily in equity securities (including American Depository Receipts) of
      Japanese companies.

   
      The net asset values of most Scudder funds can be found daily in the
"Mutual Funds" section of The Wall Street Journal under "Scudder Funds," and in
other leading newspapers throughout the country. Investors will notice the net
asset value and offering price are the same, reflecting the fact that no sales
commission or "load" is charged on the sale of shares of the Scudder funds. The
latest seven-day yields for the money-market funds can be found every Monday and
Thursday in the "Money-Market Funds" section of The Wall Street Journal. This
information also may be obtained by calling the Scudder Automated Information
Line (SAIL) at 1-800-343-2890.
    


                                       42
<PAGE>

      The Scudder Family of Funds offers many conveniences and services,
including: active professional investment management; broad and diversified
investment portfolios; pure no-load funds with no commissions to purchase or
redeem shares or Rule 12b-1 distribution fees; individual attention from a
service representative of Scudder Investor Relations; and easy telephone
exchanges into other Scudder funds. Certain Scudder funds or classes thereof may
not be available for purchase or exchange. For more information, please call
1-800-225-5163.

                              SPECIAL PLAN ACCOUNTS

   
     (See "Scudder tax-advantaged retirement plans," "Purchases-By Automatic
  Investment Plan" and "Exchanges and redemptions-By Automatic Withdrawal Plan"
                           in the Fund's prospectus.)

      Detailed information on any Scudder investment plan, including the
applicable charges, minimum investment requirements and disclosures made
pursuant to Internal Revenue Service (the "IRS") requirements, may be obtained
by contacting Scudder Investor Services, Inc., Two International Place, Boston,
Massachusetts 02110-4103 or by calling toll free, 1-800-225-2470. The
discussions of the plans below describe only certain aspects of the federal
income tax treatment of the plan. The state treatment may be different and may
vary from state to state. It is advisable for an investor considering the
funding of the investment plans described below to consult with an attorney or
other investment or tax adviser with respect to the suitability requirements and
tax aspects thereof.
    

      Shares of the Fund may also be a permitted investment under profit sharing
and pension plans and IRA's other than those offered by the Fund's distributor
depending on the provisions of the relevant plan or IRA.

      None of the plans assures a profit or guarantees protection against
depreciation, especially in declining markets.

Scudder Retirement Plans: Profit-Sharing and Money Purchase
Pension Plans for Corporations and Self-Employed Individuals

   
      Shares of the Fund may be purchased as the investment medium under a plan
in the form of a Scudder Profit-Sharing Plan (including a version of the Plan
which includes a cash-or-deferred feature) or a Scudder Money Purchase Pension
Plan (jointly referred to as the Scudder Retirement Plans) adopted by a
corporation, a self-employed individual or a group of self-employed individuals
(including sole proprietorships and partnerships), or other qualifying
organization. Each of these forms was approved by the IRS as a prototype. The
IRS's approval of an employer's plan under Section 401(a) of the Internal
Revenue Code will be greatly facilitated if it is in such approved form. Under
certain circumstances, the IRS will assume that a plan, adopted in this form,
after special notice to any employees, meets the requirements of Section 401(a)
of the Internal Revenue Code as to form.
    

Scudder 401(k): Cash or Deferred Profit-Sharing Plan
for Corporations and Self-Employed Individuals

      Shares of the Fund may be purchased as the investment medium under a plan
in the form of a Scudder 401(k) Plan adopted by a corporation, a self-employed
individual or a group of self-employed individuals (including sole proprietors
and partnerships), or other qualifying organization. This plan has been approved
as a prototype by the IRS.

Scudder IRA:  Individual Retirement Account

      Shares of the Fund may be purchased as the underlying investment for an
Individual Retirement Account which meets the requirements of Section 408(a) of
the Internal Revenue Code.

      A single individual who is not an active participant in an
employer-maintained retirement plan, a simplified employee pension plan, or a
tax-deferred annuity program (a "qualified plan"), and a married individual who
is not an active participant in a qualified plan and whose spouse is also not an
active participant in a qualified plan, are eligible to make tax deductible
contributions of up to $2,000 to an IRA prior to the year such individual
attains age 70 1/2. In addition, certain individuals who are active participants
in qualified plans (or who have spouses who are active participants) are also
eligible to make tax-deductible contributions to an IRA; the annual amount, if
any, of the


                                       43
<PAGE>

contribution which such an individual will be eligible to deduct will be
determined by the amount of his, her, or their adjusted gross income for the
year. Whenever the adjusted gross income limitation prohibits an individual from
contributing what would otherwise be the maximum tax-deductible contribution he
or she could make, the individual will be eligible to contribute the difference
to an IRA in the form of nondeductible contributions.

      An eligible individual may contribute as much as $2,000 of qualified
income (earned income or, under certain circumstances, alimony) to an IRA each
year (up to $2,000 per individual for married couples if only one spouse has
earned income). All income and capital gains derived from IRA investments are
reinvested and compound tax-deferred until distributed. Such tax-deferred
compounding can lead to substantial retirement savings.

      The table below shows how much individuals would accumulate in a fully
tax-deductible IRA by age 65 (before any distributions) if they contribute
$2,000 at the beginning of each year, assuming average annual returns of 5, 10,
and 15%. (At withdrawal, accumulations in this table will be taxable.)

                             Value of IRA at Age 65
                 Assuming $2,000 Deductible Annual Contribution

- -------------------------------------------------------------------------
     Starting                      Annual Rate of Return
      Age of       ------------------------------------------------------
  Contributions           5%                10%               15%
- -------------------------------------------------------------------------
        25            $253,680          $973,704        $4,091,908
        35             139,522           361,887           999,914
        45              69,439           126,005           235,620
        55              26,414            35,062            46,699

      This next table shows how much individuals would accumulate in non-IRA
accounts by age 65 if they start with $2,000 in pretax earned income at the
beginning of each year (which is $1,380 after taxes are paid), assuming average
annual returns of 5, 10 and 15%. (At withdrawal, a portion of the accumulation
in this table will be taxable.)

                          Value of a Non-IRA Account at
                   Age 65 Assuming $1,380 Annual Contributions
                 (post tax, $2,000 pretax) and a 31% Tax Bracket

- -------------------------------------------------------------------------
     Starting                      Annual Rate of Return
      Age of       ------------------------------------------------------
  Contributions           5%                10%               15%
- -------------------------------------------------------------------------
        25            $119,318          $287,021          $741,431
        35              73,094           136,868           267,697
        45              40,166            59,821            90,764
        55              16,709            20,286            24,681

Scudder 403(b) Plan

      Shares of the Fund may also be purchased as the underlying investment for
tax sheltered annuity plans under the provisions of Section 403(b)(7) of the
Internal Revenue Code. In general, employees of tax-exempt organizations
described in Section 501(c)(3) of the Internal Revenue Code (such as hospitals,
churches, religious, scientific, or literary organizations and educational
institutions) or a public school system are eligible to participate in a 403(b)
plan.

   
Scudder Roth IRA:  Individual Retirement Account

      Shares of the Fund(s) may be purchased as the underlying investment for a
Roth individual Retirement Account which meets the requirements of Section 408A
of the Internal Revenue Code.
    


                                       44
<PAGE>

   
      A single individual earning below $95,000 can contribute up to $2,000 per
year to a Roth IRA. The maximum contribution amount diminishes and gradually
falls to zero for single filers with adjusted gross incomes ranging from $95,000
to $110,000. Married couples earning less than $150,000 combined, and filing
jointly, can contribute a full $4,000 per year ($2,000 per IRA). The maximum
contribution amount for married couples filing jointly phases out from $150,000
to $160,000.

      An eligible individual can contribute money to a traditional IRA and a
Roth IRA as long as the total contribution to all IRAs does not exceed $2,000.
No tax deduction is allowed under Section 219 of the Internal Revenue Code for
contributions to a Roth IRA. Contributions to a Roth IRA may be made even after
the individual for whom the account is maintained has attained age 70 1/2.

      All income and capital gains derived from Roth IRA investments are
reinvested and compounded tax-free. Such tax-free compounding can lead to
substantial retirement savings. No distributions are required to be taken prior
to the death of the original account holder. If a Roth IRA has been established
for a minimum of five years, distributions can be taken tax-free after reaching
age 59 1/2, for a first-time home purchase ($10,000 maximum, one-time use) or
upon death or disability. All other distributions of earnings from a Roth IRA
are taxable and subject to a 10% tax penalty unless an exception applies.
Exceptions to the 10% penalty include: disability, excess medical expenses, the
purchase of health insurance for an unemployed individual and education
expenses.
    

Automatic Withdrawal Plan

   
      Non-retirement plan shareholders may establish an Automatic Withdrawal
Plan to receive monthly, quarterly or periodic redemptions from his or her
account for any designated amount of $50 or more. Shareholders may designate
which day they want the automatic withdrawal to be processed. The check amounts
may be based on the redemption of a fixed dollar amount, fixed share amount,
percent of account value or declining balance. The Plan provides for income
dividends and capital gains distributions, if any, to be reinvested in
additional shares. Shares are then liquidated as necessary to provide for
withdrawal payments. Since the withdrawals are in amounts selected by the
investor and have no relationship to yield or income, payments received cannot
be considered as yield or income on the investment and the resulting
liquidations may deplete or possibly extinguish the initial investment and any
reinvested dividends and capital gains distributions. Requests for increases in
withdrawal amounts or to change the payee must be submitted in writing, signed
exactly as the account is registered, and contain signature guarantee(s) as
described under "Transaction information--Redeeming shares--Signature
guarantees" in the Fund's prospectus. Any such requests must be received by the
Fund's transfer agent ten days prior to the date of the first automatic
withdrawal. An Automatic Withdrawal Plan may be terminated at any time by the
shareholder, the Corporation or its agent on written notice, and will be
terminated when all shares of the Fund under the Plan have been liquidated or
upon receipt by the Corporation of notice of death of the shareholder.
    

      An Automatic Withdrawal Plan request form can be obtained by calling
1-800-225-5163.

Group or Salary Deduction Plan

   
      An investor may join a Group or Salary Deduction Plan where satisfactory
arrangements have been made with Scudder Investor Services, Inc. for forwarding
regular investments through a single source. The minimum annual investment is
$240 per investor which may be made in monthly, quarterly, semiannual or annual
payments. The minimum monthly deposit per investor is $20. Except for trustees
or custodian fees for certain retirement plans, at present there is no separate
charge for maintaining group or salary deduction plans; however, the Corporation
and its agents reserve the right to establish a maintenance charge in the future
depending on the services required by the investor.

      The Corporation reserves the right, after notice has been given to the
shareholder, to redeem and close a shareholder's account in the event that the
shareholder ceases participating in the group plan prior to investment of $1,000
per individual or in the event of a redemption which occurs prior to the
accumulation of that amount or which reduces the account value to less than
$1,000 and the account value is not increased to $1,000 within a reasonable time
    


                                       45
<PAGE>

after notification. An investor in a plan who has not purchased shares for six
months shall be presumed to have stopped making payments under the plan.

Automatic Investment Plan

      Shareholders may arrange to make periodic investments through automatic
deductions from checking accounts by completing the appropriate form and
providing the necessary documentation to establish this service. The minimum
investment is $50.

      The Automatic Investment Plan involves an investment strategy called
dollar cost averaging. Dollar cost averaging is a method of investing whereby a
specific dollar amount is invested at regular intervals. By investing the same
dollar amount each period, when shares are priced low the investor will purchase
more shares than when the share price is higher. Over a period of time this
investment approach may allow the investor to reduce the average price of the
shares purchased. However, this investment approach does not assure a profit or
protect against loss. This type of regular investment program may be suitable
for various investment goals such as, but not limited to, college planning or
saving for a home.

Uniform Transfers/Gifts to Minors Act

      Grandparents, parents or other donors may set up custodian accounts for
minors. The minimum initial investment is $1,000 unless the donor agrees to
continue to make regular share purchases for the account through Scudder's
Automatic Investment Plan (AIP). In this case, the minimum initial investment is
$500.

   
      The Corporation reserves the right, after notice has been given to the
shareholder and custodian, to redeem and close a shareholder's account in the
event that regular investments to the account cease before the $1,000 minimum is
reached.
    

Automatic Investment Plan

      Shareholders may arrange to make periodic investments through automatic
deductions from checking accounts by completing the appropriate form and
providing the necessary documentation to establish this service. The minimum
investment is $50.

      The Automatic Investment Plan involves an investment strategy called
dollar cost averaging. Dollar cost averaging is a method of investing whereby a
specific dollar amount is invested at regular intervals. By investing the same
dollar amount each period, when shares are priced low the investor will purchase
more shares than when the share price is higher. Over a period of time this
investment approach may allow the investor to reduce the average price of the
shares purchased. However, this investment approach does not assure a profit or
protect against loss. This type of regular investment program may be suitable
for various investment goals such as, but not limited to, college planning or
saving for a home.

Uniform Transfers/Gifts to Minors Act

      Grandparents, parents or other donors may set up custodian accounts for
minors. The minimum initial investment is $1,000 unless the donor agrees to
continue to make regular share purchases for the account through Scudder's
Automatic Investment Plan (AIP). In this case, the minimum initial investment is
$500.

      The Corporation reserves the right, after notice has been given to the
shareholder and custodian, to redeem and close a shareholder's account in the
event that regular investments to the account cease before the $1,000 minimum is
reached.


                                       46
<PAGE>

                    DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS

      (See "Distribution and performance information--Dividends and capital
                gains distributions" in the Funds' prospectuses.)

      Each Fund intends to follow the practice of distributing all of its
investment company taxable income, which includes any excess of net realized
short-term capital gains over net realized long-term capital losses. A Fund may
follow the practice of distributing the entire excess of net realized long-term
capital gains over net realized short-term capital losses. However, a Fund may
retain all or part of such gain for reinvestment after paying the related
federal income taxes for which the shareholders may then be asked to claim a
credit against their federal income tax liability. (See "TAXES.")

      If a Fund does not distribute an amount of capital gain and/or ordinary
income required to be distributed by an excise tax provision of the Code, it may
be subject to such tax. (See "TAXES.") In certain circumstances, a Fund may
determine that it is in the interest of shareholders to distribute less than
such an amount.

      Earnings and profits distributed to shareholders on redemptions of Fund
shares may be utilized by the Fund, to the extent permissible, as part of the
Fund's dividend paid deduction on its federal tax return.

      The Corporation intends to distribute the Funds' investment company
taxable income and any net realized capital gains in December to avoid federal
excise tax, although an additional distribution may be made if necessary. Both
types of distributions will be made in shares of the Funds and confirmations
will be mailed to each shareholder unless a shareholder has elected to receive
cash, in which case a check will be sent. Distributions of investment company
taxable income and net realized capital gains are taxable (See "TAXES"), whether
made in shares or cash.

      Each distribution is accompanied by a brief explanation of the form and
character of the distribution. The characterization of distributions on such
correspondence may differ from the characterization for federal tax purposes. In
January of each year the Funds issue to each shareholder a statement of the
federal income tax status of all distributions in the prior calendar year.

                             PERFORMANCE INFORMATION

                       (See "Distribution and performance
       information--Performance information" in the Funds' prospectuses.)

      From time to time, quotations of the Funds' performance may be included in
advertisements, sales literature or reports to shareholders or prospective
investors. These performance figures will be calculated in the following manner:

Average Annual Total Return

      Average annual total return is the average annual compound rate of return
for the periods of one year and the life of a Fund, ended on the last day of a
recent calendar quarter. Average annual total return quotations reflect changes
in the price of the Funds' shares and assume that all dividends and capital
gains distributions during the respective periods were reinvested in Fund
shares. Average annual total return is calculated by finding the average annual
compound rates of return of a hypothetical investment over such periods,
according to the following formula (average annual total return is then
expressed as a percentage):


                                       47
<PAGE>

                               T = (ERV/P)^1/n - 1
Where:

             T     =     Average Annual Total Return
             P     =     a hypothetical initial payment of $1,000
             n     =     number of years
             ERV   =     ending redeemable value: ERV is the value, at the end
                         of the applicable period, of a hypothetical $1,000
                         investment made at the beginning of the applicable
                         period.

   
TO BE UPDATED
      Average Annual Total Return for the periods ended October 31,  1998

                                   One year                     Life of Fund
                                   --------                     ------------

    Latin America Fund                 %                             %(1)

    Pacific Opportunities Fund         %                             %(1)

    Greater Europe Growth Fund         %*                            %(2)

    Emerging Markets Growth Fund       %**                           %(3)
    

      (1)   For the period beginning December 8, 1992 (commencement of
            operations for Latin America Fund and Pacific Opportunities Fund).

      (2)   For the period beginning October 10, 1994 (commencement of
            operations for Greater Europe Growth Fund).

      (3)   For the period beginning May 8, 1996 (commencement of operations for
            Emerging Markets Growth Fund).

   
      *     If the Adviser had not maintained Fund expenses average annual total
            return would have been approximately 24.4%.

      **    If the Adviser had not maintained Fund expenses average annual total
            return would have been approximately 13.2%. Average annual total
            return does not reflect the effect of the 2% redemption fee on
            shares held less than one year.
    

      As described above, average annual total return is based on historical
earnings and is not intended to indicate future performance. Average annual
total return for a Fund will vary based on changes in market conditions and the
level of a Fund's expenses.

      In connection with communicating its average annual total return to
current or prospective shareholders, a Fund also may compare these figures to
the performance of other mutual funds tracked by mutual fund rating services or
to unmanaged indices which may assume reinvestment of dividends but generally do
not reflect deductions for administrative and management costs.

Cumulative Total Return

      Cumulative total return is the compound rate of return on a hypothetical
initial investment of $1,000 for a specified period. Cumulative total return
quotations reflect changes in the price of the Funds' shares and assume that all
dividends and capital gains distributions during the period were reinvested in
Fund shares. Cumulative total return is calculated by finding the cumulative
rates of return of a hypothetical investment over such periods, according to the
following formula (cumulative total return is then expressed as a percentage):


                                       48
<PAGE>

                                 C = (ERV/P) -1
Where:

             C     =     Cumulative Total Return
             P     =     a hypothetical initial investment of $1,000
             ERV   =     ending redeemable value: ERV is the value, at the end
                         of the applicable period, of a hypothetical $1,000
                         investment made at the beginning of the applicable
                         period.

         Cumulative Total Return for the periods ended October 31, 1997

   
TO BE UPDATED

                              One year                      Life of Fund
                              --------                      ------------

Latin America Fund                %                             % (1)

Pacific Opportunities Fund        %                             % (1)

Greater Europe Growth Fund        %*                            % (2)

Emerging Markets Growth Fund      %**                           % (3)
    

      (1)   For the period beginning December 8, 1992 (commencement of
            operations for Latin America Fund and Pacific Opportunities Fund).

      (2)   For the period beginning October 10, 1994 (commencement of
            operations for Greater Europe Growth Fund).

      (3)   For the period beginning May 8, 1996 (commencement of operations for
            Emerging Markets Growth Fund).

   
      *     If the Adviser had not maintained Fund expenses cumulative total
            return would have been approximately 24.4%.

      **    If the Adviser had not maintained Fund expenses cumulative total
            return would have been approximately 13.2%. Cumulative total return
            does not reflect the effect of the 2% redemption fee on shares held
            less than one year.
    

Total Return

      Total return is the rate of return on an investment for a specified period
of time calculated in the same manner as cumulative total return.

   
Comparison of Portfolio Performance
    

      A comparison of the quoted non-standard performance offered for various
investments is valid only if performance is calculated in the same manner. Since
there are different methods of calculating performance, investors should
consider the effects of the methods used to calculate performance when comparing
performance of a Fund with performance quoted with respect to other investment
companies or types of investments.

      In connection with communicating its performance to current or prospective
shareholders, a Fund also may compare these figures to the performance of
unmanaged indices which may assume reinvestment of dividends or interest but
generally do not reflect deductions for administrative and management costs.
Examples include, but are not limited


                                       49
<PAGE>

   
to the Dow Jones Industrial Average, the Consumer Price Index, Standard & Poor's
500 Composite Stock Price Index (S&P 500), the Nasdaq OTC Composite Index, the
Nasdaq Industrials Index, the Russell 2000 Index, the Wilshire Real Estate
Securities Index, and statistics published by the Small Business Administration.
    

      Because some or all each Fund's investments are denominated in foreign
currencies, the strength or weakness of the U.S. dollar as against these
currencies may account for part the Fund's investment performance. Historical
information on the value of the dollar versus foreign currencies may be used
from time to time in advertisements concerning the Funds. Such historical
information is not indicative of future fluctuations in the value of the U.S.
dollar against these currencies. In addition, marketing materials may cite
country and economic statistics and historical stock market performance for any
of the countries in which either Fund invests, including, but not limited to,
the following: population growth, gross domestic product, inflation rate,
average stock market price-earnings ratios and the total value of stock markets.
Sources for such statistics may include official publications of various foreign
governments and exchanges.

      From time to time, in advertising and marketing literature, a Fund's
performance may be compared to the performance of broad groups of mutual funds
with similar investment goals, as tracked by independent organizations such as,
Investment Company Data, Inc. ("ICD"), Lipper Analytical Services, Inc.
("Lipper"), CDA Investment Technologies, Inc. ("CDA"), Morningstar, Inc., Value
Line Mutual Fund Survey and other independent organizations. When these
organizations' tracking results are used, a Fund will be compared to the
appropriate fund category, that is, by fund objective and portfolio holdings, or
to the appropriate volatility grouping, where volatility is a measure of a
fund's risk. For instance, a Scudder growth fund will be compared to funds in
the growth fund category; a Scudder income fund will be compared to funds in the
income fund category; and so on. Scudder funds (except for money market funds)
may also be compared to funds with similar volatility, as measured statistically
by independent organizations. In addition, a Fund's performance may also be
compared to the performance of broad groups of comparable mutual funds.
Unmanaged indices with which a Fund's performance may be compared include, but
are not limited to, the following:

            The Europe/Australia/Far East (EAFE) Index
            International Finance Corporation's Latin America Investable Total
            Return Index
            Morgan Stanley Capital International World Index
            J.P. Morgan Global Traded Bond Index
            Salomon Brothers World Government Bond Index
            Nasdaq Composite Index
            Wilshire 5000 Stock Index

   
      From time to time, in marketing and other Fund literature, Directors and
officers of the Corporation, the Funds' portfolio manager, or members of the
portfolio management team may be depicted and quoted to give prospective and
current shareholders a better sense of the outlook and approach of those who
manage the Funds. In addition, the amount of assets that the Adviser has under
management in various geographical areas may be quoted in advertising and
marketing materials.
    

      The Funds may be advertised as an investment choice in Scudder's college
planning program. The description may contain illustrations of projected future
college costs based on assumed rates of inflation and examples of hypothetical
fund performance, calculated as described above.

      Statistical and other information, as provided by the Social Security
Administration, may be used in marketing materials pertaining to retirement
planning in order to estimate future payouts of social security benefits.
Estimates may be used on demographic and economic data.

      Marketing and other Fund literature may include a description of the
potential risks and rewards associated with an investment in the Funds. The
description may include a "risk/return spectrum" which compares the Funds to
other Scudder funds or broad categories of funds, such as money market, bond or
equity funds, in terms of potential risks and returns. Money market funds are
designed to maintain a constant $1.00 share price and have a fluctuating yield.
Share price, yield and total return of a bond fund will fluctuate. The share
price and return of an equity fund also will fluctuate. The description may also
compare the Funds to bank products, such as certificates of deposit. Unlike
mutual funds, certificates of deposit are insured up to $100,000 by the U.S.
government and offer a fixed rate of return.


                                       50
<PAGE>

      Because bank products guarantee the principal value of an investment and
money market funds seek stability of principal, these investments are considered
to be less risky than investments in either bond or equity funds, which may
involve the loss of principal. However, all long-term investments, including
investments in bank products, may be subject to inflation risk, which is the
risk of erosion of the value of an investment as prices increase over a long
time period. The risks/returns associated with an investment in bond or equity
funds depend upon many factors. For bond funds these factors include, but are
not limited to, a fund's overall investment objective, the average portfolio
maturity, credit quality of the securities held, and interest rate movements.
For equity funds, factors include a fund's overall investment objective, the
types of equity securities held and the financial position of the issuers of the
securities. The risks/returns associated with an investment in international
bond or equity funds also will depend upon currency exchange rate fluctuation.

      A risk/return spectrum generally will position the various investment
categories in the following order: bank products, money market funds, bond funds
and equity funds. Shorter-term bond funds generally are considered less risky
and offer the potential for less return than longer-term bond funds. The same is
true of domestic bond funds relative to international bond funds, and bond funds
that purchase higher quality securities relative to bond funds that purchase
lower quality securities. Growth and income equity funds are generally
considered to be less risky and offer the potential for less return than growth
funds. In addition, international equity funds usually are considered more risky
than domestic equity funds but generally offer the potential for greater return.

      Risk/return spectrums also may depict funds that invest in both domestic
and foreign securities or a combination of bond and equity securities.

      Evaluation of Fund performance or other relevant statistical information
made by independent sources may also be used in advertisements concerning the
Funds, including reprints of, or selections from, editorials or articles about
these Funds. Sources for Fund performance information and articles about the
Funds include the following:

American Association of Individual Investors' Journal, a monthly publication of
the AAII that includes articles on investment analysis techniques.

Asian Wall Street Journal, a weekly Asian newspaper that often reviews U.S.
mutual funds investing internationally.

Banxquote, an on-line source of national averages for leading money market and
bank CD interest rates, published on a weekly basis by Masterfund, Inc. of
Wilmington, Delaware.

Barron's, a Dow Jones and Company, Inc. business and financial weekly that
periodically reviews mutual fund performance data.

Business Week, a national business weekly that periodically reports the
performance rankings and ratings of a variety of mutual funds investing abroad.

CDA Investment Technologies, Inc., an organization which provides performance
and ranking information through examining the dollar results of hypothetical
mutual fund investments and comparing these results against appropriate market
indices.

Consumer Digest, a monthly business/financial magazine that includes a "Money
Watch" section featuring financial news.

Financial Times, Europe's business newspaper, which features from time to time
articles on international or country-specific funds.

Financial World, a general business/financial magazine that includes a "Market
Watch" department reporting on activities in the mutual fund industry.

Forbes, a national business publication that from time to time reports the
performance of specific investment companies in the mutual fund industry.


                                       51
<PAGE>

Fortune, a national business publication that periodically rates the performance
of a variety of mutual funds.

The Frank Russell Company, a West-Coast investment management firm that
periodically evaluates international stock markets and compares foreign equity
market performance to U.S. stock market performance.

Global Investor, a European publication that periodically reviews the
performance of U.S. mutual funds investing internationally.

IBC Money Fund Report, a weekly publication of IBC Financial Data, Inc.,
reporting on the performance of the nation's money market funds, summarizing
money market fund activity and including certain averages as performance
benchmarks, specifically "IBC's Money Fund Average," and "IBC's Government Money
Fund Average."

Ibbotson Associates, Inc., a company specializing in investment research and
data.

Investment Company Data, Inc., an independent organization which provides
performance ranking information for broad classes of mutual funds.

Investor's Business Daily, a daily newspaper that features financial, economic,
and business news.

Kiplinger's Personal Finance Magazine, a monthly investment advisory publication
that periodically features the performance of a variety of securities.

Lipper Analytical Services, Inc.'s Mutual Fund Performance Analysis, a weekly
publication of industry-wide mutual fund averages by type of fund.

Money, a monthly magazine that from time to time features both specific funds
and the mutual fund industry as a whole.

Morgan Stanley International, an integrated investment banking firm that
compiles statistical information.

Mutual Fund Values, a biweekly Morningstar, Inc. publication that provides
ratings of mutual funds based on fund performance, risk and portfolio
characteristics.

The New York Times, a nationally distributed newspaper which regularly covers
financial news.

The No-Load Fund Investor, a monthly newsletter, published by Sheldon Jacobs,
that includes mutual fund performance data and recommendations for the mutual
fund investor.

No-Load Fund*X, a monthly newsletter, published by DAL Investment Company, Inc.,
that reports on mutual fund performance, rates funds and discusses investment
strategies for the mutual fund investor.

Personal Investing News, a monthly news publication that often reports on
investment opportunities and market conditions.

Personal Investor, a monthly investment advisory publication that includes a
"Mutual Funds Outlook" section reporting on mutual fund performance measures,
yields, indices and portfolio holdings.

SmartMoney, a national personal finance magazine published monthly by Dow Jones
and Company, Inc. and The Hearst Corporation. Focus is placed on ideas for
investing, spending and saving.

Success, a monthly magazine targeted to the world of entrepreneurs and growing
business, often featuring mutual fund performance data.

United Mutual Fund Selector, a semi-monthly investment newsletter, published by
Babson United Investment Advisors, that includes mutual fund performance data
and reviews of mutual fund portfolios and investment strategies.

USA Today, a leading national daily newspaper.


                                       52
<PAGE>

U.S. News and World Report, a national news weekly that periodically reports
mutual fund performance data.

Value Line Mutual Fund Survey, an independent organization that provides
biweekly performance and other information on mutual funds.

The Wall Street Journal, a Dow Jones and Company, Inc. newspaper which regularly
covers financial news.

Wiesenberger Investment Companies Services, an annual compendium of information
about mutual funds and other investment companies, including comparative data on
funds' backgrounds, management policies, salient features, management results,
income and dividend records and price ranges.

Working Woman, a monthly publication that features a "Financial Workshop"
section reporting on the mutual fund/financial industry.

Worth, a national publication issued 10 times per year by Capital Publishing
Company, a subsidiary of Fidelity Investments. Focus is placed on personal
financial journalism.

Taking a Global Approach

      Many U.S. investors limit their holdings to U.S. securities because they
assume that international or global investing is too risky. While there are
risks connected with investing overseas, it's important to remember that no
investment -- even in blue-chip domestic securities -- is entirely risk free.
Looking outside U.S. borders, an investor today can find opportunities that
mirror domestic investments -- everything from large, stable multinational
companies to start-ups in emerging markets. To determine the level of risk with
which you are comfortable, and the potential for reward you're seeking over the
long term, you need to review the type of investment, the world markets, and
your time horizon.

      The U.S. is unusual in that it has a very broad economy that is well
represented in the stock market. However, many countries around the world are
not only undergoing a revolution in how their economies operate, but also in
terms of the role their stock markets play in financing activities. There is
vibrant change throughout the global economy and all of this represents
potential investment opportunity.

      Investing beyond the United States can open this world of opportunity, due
partly to the dramatic shift in the balance of world markets. In 1970, the
United States alone accounted for two-thirds of the value of the world's stock
markets. Now, the situation is reversed -- only 35% of global stock market
capitalization resides here. There are companies in Southeast Asia that are
starting to dominate regional activity; there are companies in Europe that are
expanding outside of their traditional markets and taking advantage of faster
growth in Asia and Latin America; other companies throughout the world are
getting out from under state control and restructuring; developing countries
continue to open their doors to foreign investment.

      Stocks in many foreign markets can be attractively priced. The global
stock markets do not move in lock step. When the valuations in one market rise,
there are other markets that are less expensive. There is also volatility within
markets in that some sectors may be more expensive while others are depressed in
valuation. A wider set of opportunities can help make it possible to find the
best values available.

      International or global investing offers diversification because the
investment is not limited to a single country or economy. In fact, many experts
agree that investment strategies that include both U.S. and non-U.S. investments
strike the best balance between risk and reward.

       


                                       53
<PAGE>

                            ORGANIZATION OF THE FUNDS

              (See "Fund organization" in the Funds' prospectuses.)

      The Corporation was organized as Scudder Fund of Canada Ltd. in Canada in
1953 by the investment management firm of Scudder, Stevens & Clark. On March 16,
1964, the name of the Corporation was changed to Scudder International
Investments Ltd. On July 31, 1975, the corporate domicile of the Corporation was
changed to the United States through the transfer of its net assets to a newly
formed Maryland corporation, Scudder International Fund, Inc., in exchange for
shares of the Corporation which then were distributed to the shareholders of the
Corporation.

   
      The authorized capital stock of the Corporation consists of 900 million
shares of a par value of $.01 each. Each series has one class of shares, except
for Scudder International Fund, which has two classes of shares. All shares of a
class have equal rights as to voting, redemption, dividends and liquidation.
Shareholders have one vote for each share held. The Corporation's capital stock
is comprised of eight series: Scudder International Fund, the original series;
Scudder Latin America Fund and Scudder Pacific Opportunities Fund, both
organized in December, 1992, Scudder Greater Europe Growth Fund, organized in
August, 1994, Emerging Markets Growth Fund, organized in May 1996 , Scudder
International Growth and Income Fund, organized in June 1997 and Scudder
International Value Fund and Scudder International Growth Fund, both organized
in June of 1998. Each series consists of 100 million shares except for Scudder
International Fund which consists of 200 million shares. The Directors have the
authority to issue additional series of shares and to designate the relative
rights and preferences as between the different series. All shares issued and
outstanding are fully paid and non-assessable, transferable, and redeemable at
net asset value at the option of the shareholder. Shares have no pre-emptive or
conversion rights.
    

      The shares of the Corporation have non-cumulative voting rights, which
means that the holders of more than 50% of the shares voting for the election of
Directors can elect 100% of the Directors if they choose to do so, and, in such
event, the holders of the remaining less than 50% of the shares voting for the
election of Directors will not be able to elect any person or persons to the
Board of Directors. The assets of the Corporation received for the issue or sale
of the shares of each series and all income, earnings, profits and proceeds
thereof, subject only to the rights of creditors, are specifically allocated to
such series and constitute the underlying assets of such series. The underlying
assets of each series are segregated on the books of account, and are to be
charged with the liabilities in respect to such series and with such a share of
the general liabilities of the Corporation. If a series were unable to meet its
obligations, the assets of all other series may in some circumstances be
available to creditors for that purpose, in which case the assets of such other
series could be used to meet liabilities which are not otherwise properly
chargeable to them. Expenses with respect to any two or more series are to be
allocated in proportion to the asset value of the respective series except where
allocations of direct expenses can otherwise be fairly made. The officers of the
Corporation, subject to the general supervision of the Directors, have the power
to determine which liabilities are allocable to a given series, or which are
general or allocable to two or more series. In the event of the dissolution or
liquidation of the Corporation or any series, the holders of the shares of any
series are entitled to receive as a class the underlying assets of such shares
available for distribution to shareholders.

      Shares of the Corporation entitle their holders to one vote per share;
however, separate votes are taken by each series on matters affecting an
individual series. For example, a change in investment policy for a series would
be voted upon only by shareholders of the series involved. Additionally,
approval of the investment advisory agreement is a matter to be determined
separately by each series. Approval by the shareholders of one series is
effective as to that series whether or not enough votes are received from the
shareholders of the other series to approve such agreement as to the other
series.

   
      The Directors, in their discretion, may authorize the division of shares
of the Corporation (or shares of a series) into different classes permitting
shares of different classes to be distributed by different methods. Although
shareholders of different classes of a series would have an interest in the same
portfolio of assets, shareholders of different classes may bear different
expenses in connection with different methods of distribution.
    

      The Corporation's Amended and Restated Certificate of Incorporation (the
"Articles") provide that the Directors of the Corporation, to the fullest extent
permitted by Maryland General Corporation Law and the 1940 Act, shall not be


                                       54
<PAGE>

liable to the Corporation or its shareholders for damages. Maryland law
currently provides that Directors shall be immune from liability for any action
taken by them in good faith, in a manner reasonably believed to be in the best
interests of the Corporation and with the care that an ordinarily prudent person
in a like position would use under similar circumstances. In so acting, a
Director shall be fully protected in relying in good faith upon the records of
the Corporation and upon reports made to the Corporation by persons selected in
good faith by the Directors as qualified to make such reports. The Articles and
the By-Laws provide that the Corporation will indemnify its Directors, officers,
employees or agents against liabilities and expenses incurred in connection with
litigation in which they may be involved because of their offices with the
Corporation consistent with applicable law. Nothing in the Articles or the
By-Laws protects or indemnifies a Director, officer, employee or agent against
any liability to which he or she would otherwise be subject by reason of willful
misfeasance, bad faith, gross negligence or reckless disregard of the duties
involved in the conduct of his or her office.

                               INVESTMENT ADVISER

    (See "Fund organization--Investment adviser" in the Funds' prospectuses.)

   
      Scudder Kemper Investments, Inc. (the "Adviser"), an investment counsel
firm, acts as investment adviser to the Fund. This organization, the predecessor
of which is Scudder, Stevens & Clark, Inc., is one of the most experienced
investment counsel firms in the U. S. It was established as a partnership in
1919 and pioneered the practice of providing investment counsel to individual
clients on a fee basis. In 1928 it introduced the first no-load mutual fund to
the public. In 1953 the Adviser introduced Scudder International Fund, Inc., the
first mutual fund available in the U.S. investing internationally in securities
of issuers in several foreign countries. The predecessor firm reorganized from a
partnership to a corporation on June 28, 1985. On June 26, 1997, Scudder,
Stevens & Clark, Inc. ("Scudder") entered into an agreement with Zurich
Insurance Company ("Zurich") pursuant to which Scudder and Zurich agreed to form
an alliance. On December 31, 1997, Zurich acquired a majority interest in
Scudder, and Zurich Kemper Investments, Inc., a Zurich subsidiary, became part
of Scudder. Scudder's name has been changed to Scudder Kemper Investments, Inc.

      Founded in 1872, Zurich is a multinational, public corporation organized
under the laws of Switzerland. Its home office is located at Mythenquai 2, 8002
Zurich, Switzerland. Historically, Zurich's earnings have resulted from its
operations as an insurer as well as from its ownership of its subsidiaries and
affiliated companies (the "Zurich Insurance Group"). Zurich and the Zurich
Insurance Group provide an extensive range of insurance products and services
and have branch offices and subsidiaries in more than 40 countries throughout
the world.

      The principal source of the Adviser's income is professional fees received
from providing continuous investment advice, and the firm derives no income from
brokerage or underwriting of securities. Today, it provides investment counsel
for many individuals and institutions, including insurance companies, colleges,
industrial corporations, and financial and banking organizations. In addition,
it manages Montgomery Street Income Securities, Inc., Scudder California Tax
Free Trust, Scudder Cash Investment Trust, Value Equity Trust, Scudder Fund,
Inc., Scudder Funds Trust, Global/International Fund, Inc., Scudder Global High
Income Fund, Inc., Scudder GNMA Fund, Scudder Portfolio Trust, Scudder
Institutional Fund, Inc., Scudder International Fund, Inc., Investment Trust,
Scudder Municipal Trust, Scudder Mutual Funds, Inc., Scudder New Asia Fund,
Inc., Scudder New Europe Fund, Inc., Scudder Pathway Series, Scudder Securities
Trust, Scudder State Tax Free Trust, Scudder Tax Free Money Fund, Scudder Tax
Free Trust, Scudder U.S. Treasury Money Fund, Scudder Variable Life Investment
Fund, The Argentina Fund, Inc., The Brazil Fund, Inc., The Korea Fund, Inc., The
Japan Fund, Inc. and Scudder Spain and Portugal Fund, Inc. Some of the foregoing
companies or trusts have two or more series.
    

      The Adviser also provides investment advisory services to the mutual funds
which comprise the AARP Investment Program from Scudder. The AARP Investment
Program from Scudder has assets over $13 billion and includes the AARP Growth
Trust, AARP Income Trust, AARP Tax Free Income Trust, AARP Managed Investment
Portfolios Trust and AARP Cash Investment Funds.

   
      Pursuant to an Agreement between the Adviser and AMA Solutions, Inc., a
subsidiary of the American Medical Association (the "AMA"), dated May 9, 1997,
the Adviser has agreed, subject to applicable state regulations,
    


                                       55
<PAGE>

   
to pay AMA Solutions, Inc. royalties in an amount equal to 5% of the management
fee received by the Adviser with respect to assets invested by AMA members in
Scudder funds in connection with the AMA InvestmentLinkSM Program. The Adviser
will also pay AMA Solutions, Inc. a general monthly fee, currently in the amount
of $833. The AMA and AMA Solutions, Inc. are not engaged in the business of
providing investment advice and neither is registered as an investment adviser
or broker/dealer under federal securities laws. Any person who participates in
the AMA InvestmentLinkSM Program will be a customer of the Adviser (or of a
subsidiary thereof) and not the AMA or AMA Solutions, Inc. AMA InvestmentLinkSM
is a service mark of AMA Solutions, Inc.

      The Adviser maintains a large research department, which conducts
continuous studies of the factors that affect the position of various
industries, companies and individual securities. The Adviser receives published
reports and statistical compilations from issuers and other sources, as well as
analyses from brokers and dealers who may execute portfolio transactions for the
Adviser's clients. However, the Adviser regards this information and material as
an adjunct to its own research activities. Scudder's international investment
management team travels the world, researching hundreds of companies. In
selecting the securities in which the Funds may invest, the conclusions and
investment decisions of the Adviser with respect to the Funds are based
primarily on the analyses of its own research department.

      Certain investments may be appropriate for a Fund and also for other
clients advised by the Adviser. Investment decisions for a Fund and other
clients are made with a view to achieving their respective investment objectives
and after consideration of such factors as their current holdings, availability
of cash for investment and the size of their investments generally. Frequently,
a particular security may be bought or sold for only one client or in different
amounts and at different times for more than one but less than all clients.
Likewise, a particular security may be bought for one or more clients when one
or more other clients are selling the security. In addition, purchases or sales
of the same security may be made for two or more clients on the same day. In
such event, such transactions will be allocated among the clients in a manner
believed by the Adviser to be equitable to each. In some cases, this procedure
could have an adverse effect on the price or amount of the securities purchased
or sold by a Fund. Purchase and sale orders for a Fund may be combined with
those of other clients of the Adviser in the interest of achieving the most
favorable net results to the Fund.

      The transaction between Scudder and Zurich resulted in the assignment of
the Funds' investment management agreements with Scudder, those agreements were
deemed to be automatically terminated at the consummation of the transaction. In
anticipation of the transaction, however, the Directors approved new investment
management agreements between the Funds and the Adviser on August 6, 1997. At
the special meeting of the Funds' shareholders held on October 27, 1997, the
shareholders also approved the investment management agreements. The investment
management agreements became effective as of December 31, 1997 .

      On September 7, 1998, the businesses of Zurich (including Zurich's 70%
interest in Scudder Kemper) and the financial services businesses of B.A.T
Industries p.l.c. ("B.A.T") were combined to form a new global insurance and
financial services company known as Zurich Financial Services Group. By way of a
dual holding company structure, former Zurich shareholders initially owned
approximately 57% of Zurich Financial Services Group, with the balance initially
owned by former B.A.T shareholders.

      Upon consummation of this transaction, the Funds' existing investment
management agreements with Scudder Kemper were deemed to have been assigned and,
therefore, terminated. The Board has approved new investment management
agreements (the "Agreements") with Scudder Kemper, which are substantially
identical to the current investment management agreements, except for the date
of execution and termination. The Agreements became effective September 7, 1998,
upon the termination of the then current investment management agreements and
were approved at a shareholder meeting held on December 15, 1998.

      The Agreements dated September 7, 1998 were approved by the Directors on
August 6, 1998. The Agreements will continue in effect until September 30, 1999
and from year to year thereafter only if their continuance is approved annually
by the vote of a majority of those Directors who are not parties to such
Agreements or interested persons of the Adviser or the Corporation, cast in
person at a meeting called for the purpose of voting on such approval, and
either by a vote of the Corporation's Directors or of a majority of the
outstanding voting securities of the respective Fund. The Agreements may be
terminated at any time without payment of penalty by either party on sixty days'
written notice and automatically terminate in the event of their assignment.
    


                                       56
<PAGE>

   
      Under each Agreement, the Adviser regularly provides a Fund with
continuing investment management for the Fund's portfolio consistent with the
Fund's investment objectives, policies and restrictions and determines what
securities shall be purchased for the portfolio of the Fund, what portfolio
securities shall be held or sold by the Fund, and what portion of the Fund's
assets shall be held uninvested, subject always to the provisions of the
Corporation's Articles of Incorporation and By-Laws, of the 1940 Act and the
Code and to the Fund's investment objectives, policies and restrictions, and
subject, further, to such policies and instructions as the Directors of the
Corporation may from time to time establish. The Adviser also advises and
assists the officers of the Corporation in taking such steps as are necessary or
appropriate to carry out the decisions of its Directors and the appropriate
committees of the Directors regarding the conduct of the business of the
Corporation.

      Under each Agreement, the Adviser also renders significant administrative
services (not otherwise provided by third parties) necessary for a Fund's
operations as an open-end investment company including, but not limited to,
preparing reports and notices to the Directors and shareholders, supervising,
negotiating contractual arrangements with, and monitoring various third-party
service providers to the Fund (such as the Fund's transfer agent, pricing
agents, custodians, accountants and others); preparing and making filings with
the SEC and other regulatory agencies; assisting in the preparation and filing
of the Fund's federal, state and local tax returns; preparing and filing the
Fund's federal excise tax returns; assisting with investor and public relations
matters; monitoring the valuation of securities and the calculation of net asset
value; monitoring the registration of shares of the Fund under applicable
federal and state securities laws; maintaining the Fund's books and records to
the extent not otherwise maintained by a third party; assisting in establishing
accounting policies of the Funds; assisting in the resolution of accounting and
legal issues; establishing and monitoring the Fund's operating budget;
processing the payment of the Fund's bills; assisting the Fund in, and otherwise
arranging for, the payment of distributions and dividends and otherwise
assisting the Fund in the conduct of its business, subject to the direction and
control of the Directors.

      The Adviser pays the compensation and expenses (except those of attending
Board and committee meetings outside New York, New York and Boston,
Massachusetts) of all directors, officers and executive employees of the
Corporation affiliated with the Adviser and makes available, without expense to
the Funds, the services of such directors, officers and employees as may duly be
elected officers , subject to their individual consent to serve and to any
limitations imposed by law, and provides the Funds' office space and facilities.

      For these services Latin America Fund pays the Adviser an annual fee equal
to 1.25% of the Fund's first $1 billion of average daily net assets, and 1.15%
of such assets in excess of $1 billion, payable monthly, provided the 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 the Fund and unpaid.
"During the fiscal years ended October 31, 1996, 1997 and 1998, the Adviser
imposed management fees amounting to $7,493,637, $11,498,432 and $______,
respectively.

      For these services Pacific Opportunities Fund pays the Adviser an annual
fee equal to 1.10% of the Fund's average daily net assets payable monthly,
provided the Fund will make 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 the Fund
and unpaid. For the fiscal years ended October 31, 1996, 1997 and 1998, the
Adviser imposed management fees which amounted to $4,235,329, $3,147,986 and
$______,respectively, of which $______ is unpaid at October 31, 1998.

      For these services Greater Europe Growth Fund pays the Adviser a fee equal
to 1.00% of the Fund's first $1 billion average daily net assets, and 0.90 of
such assets in excess of $1 billion, payable monthly, provided the 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 the Fund and unpaid. For
the fiscal years ended October 31, 1996 , 1997 and 1998, the Adviser did not
impose all of its management fee amounting to $305,990, $100,865 and $______
respectively. For the fiscal years ended October 31, 1996 , 1997 and 1998 the
Adviser imposed management fees amounting to $349,765, $1,653,445 and $______,
respectively.

      For these services Emerging Markets Growth Fund pays the Adviser a fee
equal to 1.25% of the Fund's average daily net assets, payable monthly, provided
the 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 the Fund and
unpaid. The Adviser has agreed until August 31, 1999 to maintain the total
annualized expenses of the Fund at no more than 2.25% of the
    


                                       57
<PAGE>

   
average daily net assets of the Fund. For the fiscal year ended October 31,
1996, 1997 and 1998, the Adviser did not impose all of its management fee
amounting to $215,973 , $617,962 and $______respectively. The Adviser did impose
management fees amounting to $0, $1,724,110 and $______, respectively.
    

      Under the Agreements the Funds are responsible for all of their other
expenses including: organizational costs, 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; any other expenses of issue,
sale, underwriting, distribution, redemption or repurchase of shares; the
expenses of and the fees for registering or qualifying securities for sale; the
fees and expenses of Directors, officers and employees of the Funds who are not
affiliated with the Adviser; the cost of printing and distributing reports and
notices to stockholders; and the fees and disbursements of custodians. The Funds
may arrange to have third parties assume all or part of the expenses of sale,
underwriting and distribution of shares of the Funds. Each Fund is also
responsible for its expenses of shareholders' meetings, the cost of responding
to shareholders' inquiries, and its expenses incurred in connection with
litigation, proceedings and claims and the legal obligation it may have to
indemnify its officers and Directors of the Funds with respect thereto. The
custodian agreement provides that the Custodian shall compute the net asset
value. Each Agreement expressly provides that the Adviser shall not be required
to pay a pricing agent of any Fund for portfolio pricing services, if any.

      Each Agreement requires the Adviser to reimburse that Fund for all or a
portion of advances of its management fee to the extent annual expenses of a
Fund (including the management fee stated above) exceed the limitations
prescribed by any state in which such Fund's shares are offered for sale.
Management has been advised that, while most states have eliminated expense
limitations, the lowest of such limitations is presently 2 1/2% of average daily
net assets up to $30 million, 2% of the next $70 million of average daily net
assets and 1 1/2% of average daily net assets in excess of that amount. Certain
expenses such as brokerage commissions, taxes, extraordinary expenses and
interest are excluded from such limitations. Any such fee advance required to be
returned to a Fund will be returned as promptly as practicable after the end of
the Funds' fiscal year. However, no fee payment will be made to the Adviser
during any fiscal year which will cause year to date expenses to exceed the
cumulative pro rata expense limitations at the time of such payment.

   
      The Agreement identifies the Adviser as the exclusive licensee of the
rights to use and sublicense the names "Scudder," "Scudder Kemper Investments,
Inc." and "Scudder Stevens and Clark, Inc." (together, the "Scudder Marks").
Under this license, the Corporation, with respect to the Fund, has the
non-exclusive right to use and sublicense the Scudder name and marks as part of
its name, and to use the Scudder Marks in the Corporation's investment products
and services.
    

       

      In reviewing the terms of the Agreements and in discussions with the
Adviser concerning such Agreements, the Directors of the Corporation who are not
"interested persons" of the Adviser are represented by independent counsel at
the Funds' expense.

      The Agreements provide that the Adviser shall not be liable for any error
of judgment or mistake of law or for any loss suffered by a Fund in connection
with matters to which the Agreement relates, except a loss resulting from
willful misfeasance, bad faith or gross negligence on the part of the Adviser in
the performance of its duties or from reckless disregard by the Adviser of its
obligations and duties under the Agreement.

      Officers and employees of the Adviser from time to time may have
transactions with various banks, including the Fund's custodian bank. It is the
Adviser's opinion that the terms and conditions of those transactions which have
occurred were not influenced by existing or potential custodial or other Fund
relationships.

   
      The Adviser may serve as adviser to other funds with investment objectives
and policies similar to those of the Funds that may have different distribution
arrangements or expenses, which may affect performance.
    

      None of the officers or Directors of the Corporation may have dealings
with a Fund as principals in the purchase or sale of securities, except as
individual subscribers to or holders of shares of a Fund.


                                       58
<PAGE>

Personal Investments by Employees of the Adviser

      Employees of the Adviser are permitted to make personal securities
transactions, subject to requirements and restrictions set forth in the
Adviser's Code of Ethics. The Code of Ethics contains provisions and
requirements designed to identify and address certain conflicts of interest
between personal investment activities and the interests of investment advisory
clients such as the Funds. Among other things, the Code of Ethics, which
generally complies with standards recommended by the Investment Company
Institute's Advisory Group on Personal Investing, prohibits certain types of
transactions absent prior approval, imposes time periods during which personal
transactions may not be made in certain securities, and requires the submission
of duplicate broker confirmations and monthly reporting of securities
transactions. Additional restrictions apply to portfolio managers, traders,
research analysts and others involved in the investment advisory process.
Exceptions to these and other provisions of the Code of Ethics may be granted in
particular circumstances after review by appropriate personnel.

   
TO BE UPDATED
    

                             DIRECTORS AND OFFICERS

   
<TABLE>
<CAPTION>
                                                                               Position with
                                                                               Underwriter,
                                                                               Scudder Investor
Name, Age, and Address    Position with Fund   Principal Occupation**          Services, Inc.
- ----------------------    ------------------   ----------------------          --------------

<S>                       <C>                  <C>                             <C>
Daniel Pierce (63)+*@     Chairman of the      Managing Director of            Vice President,
                          Board and Director   Scudder Kemper Investments,     Director &
                                               Inc.                            Assistant Treasurer

Paul Bancroft III (67)    Director             Venture Capitalist and          --
79 Pine Lane                                   Consultant; Retired,
Snowmass Village, CO                           President, Chief Executive
81615                                          Officer and Director,
                                               Bessemer Securities
                                               Corporation

Sheryle J. Bolton (51)    Director             CEO, Scientific Learning        --
Scientific Learning                            Corporation, Former President
Corporation                                    and Chief Operating Officer,
417 Montgomery Street                          Physicians' Online, Inc.
Suite 500                                      (electronic transmission of
San Francisco, CA                              clinical information for
94104                                          physicians (1994-1995);
                                               Member, Senior Management
                                               Team, Rockefeller & Co.
                                               (1990-1993).

William T. Burgin (53)    Director             General Partner, Bessemer       --
83 Walnut Street                               Venture Partners; General
Wellesley, MA   02181                          Partner, Deer & Company;
                                               Director, James River Corp.;
                                               Director, Galile Corp., Director
                                               of various privately held
                                               companies.

Thomas J. Devine (70)     Director             Consultant                      --
450 Park Avenue
New York, NY  10022

Keith R. Fox (43)         Director             President, Exeter Capital       --
10 East 53rd Street                            Management Corporation
New York, NY  10022
</TABLE>
    


                                       59
<PAGE>

   
<TABLE>
<CAPTION>
                                                                               Position with
                                                                               Underwriter,
                                                                               Scudder Investor
Name, Age, and Address    Position with Fund   Principal Occupation**          Services, Inc.
- ----------------------    ------------------   ----------------------          --------------

<S>                       <C>                  <C>                             <C>
William H. Gleysteen,     Director             Consultant; Guest Scholar,      --
Jr. (71)                                       Brookings Institute
4937 Crescent Street
Bethesda, MD  20816

William H. Luers (68)     Director             President, The Metropolitan    --
The Metropolitan                               Museum of Art (1986 to
Museum of Art                                  present)
1000 Fifth Avenue
New York, NY 10028

Wilson Nolen (70)         Director             Consultant (1989 to present);   --
1120 Fifth Avenue                              Corporate Vice President,
New York, NY 10128                             Becton, Dickinson & Company
                                               (manufacturer of medical and
                                               scientific products) until
                                               1989

Kathryn L. Quirk (44)#@*  Director; Vice       Managing Director of Scudder    Director, Senior
                          President and        Kemper Investments, Inc.        Vice President and
                          Assistant Secretary                                  Assistant Clerk

Robert G. Stone, Jr.      Honorary Director    Chairman Emeritus and           --
(74)                                           Director, Kirby Corporation
405 Lexington Avenue                           (inland and offshore marine
New York, NY 10174                             transportation and diesel
                                               repairs)

Robert W. Lear (80)       Honorary Director    Executive-in-Residence,         --
429 Silvermine Road                            Visiting Professor,
New Canaan, CT 06840                           Columbia University
                                               Graduate School of Business

Elizabeth J. Allan (44)   Vice President       Senior Vice President of        --
#                                              Scudder Kemper Investments,
                                               Inc.

Nicholas Bratt (49) #     President            Managing Director of Scudder    --
                                               Kemper Investments, Inc.

Irene T. Cheng (43) #     Vice President       Managing Director of Scudder    --
                                               Kemper Investments, Inc.

Joyce E. Cornell (53)#    Vice President       Managing Director of Scudder    --
                                               Kemper Investments, Inc.

Carol L. Franklin (44)#   Vice President       Managing Director of Scudder    --
                                               Kemper Investments, Inc.

Edmund B. Games, Jr.      Vice President       Senior Vice President of        --
(60)+                                          Scudder Kemper Investments,
                                               Inc.
</TABLE>
    


                                       60
<PAGE>

   
<TABLE>
<CAPTION>
                                                                               Position with
                                                                               Underwriter,
                                                                               Scudder Investor
Name, Age, and Address    Position with Fund   Principal Occupation**          Services, Inc.
- ----------------------    ------------------   ----------------------          --------------

<S>                       <C>                  <C>                             <C>
Jerard K. Hartman (64) #  Vice President       Managing Director of Scudder    --
                                               Kemper Investments, Inc.

John R. Hebble (39) +     Assistant Treasurer  Senior Vice President of        --
                                               Scudder Kemper Investments,
                                               Inc.

Thomas W. Joseph (58)+    Vice President       Senior Vice President of        Vice President,
                                               Scudder Kemper Investments,     Director,
                                               Inc.                            Treasurer &
                                                                               Assistant Clerk

Thomas F. McDonough       Treasurer, Vice      Senior Vice President of        Clerk
(50)+                     President and        Scudder Kemper Investments,
                          Secretary            Inc.

Caroline Pearson (35) +  Assistant Secretary   Director Fund Administration    --
                                               Scudder Kemper Investments,
                                               Inc.

Sheridan Reilly (46) #    Vice President       Vice President of Scudder       --
                                               Kemper Investments, Inc.

Richard W. Desmond (61)#  Assistant Secretary  Vice President of Scudder       Vice President
                                               Kemper Investments, Inc.
</TABLE>

*     Mr. Pierce and Ms. Quirk are considered by the Fund and its counsel to be
      persons who are "interested persons" of the Adviser or of the Fund within
      the meaning of the 1940 Act.
**    Unless otherwise stated, all officers and directors have been associated
      with their respective companies for more than five years, but not
      necessarily in the same capacity.
@     Mr. Pierce and Ms. Quirk  are members of the Executive Committee, which
      may exercise substantially all of the powers of the Board of Directors
      when it is not in session.
+     Address:  Two International Place, Boston, Massachusetts 02110
#     Address:  345 Park Avenue, New York, New York 10154

      As of January 31, 1999, all Directors and officers as a group owned
beneficially (as the term is defined in Section 13(d) under the Securities
Exchange Act of 1934) less than 1% of the shares of Latin America Fund, ______
shares, or ______% of the shares of Pacific Opportunities Fund, ______ shares,
or ______% of the shares of Greater Europe Growth Fund and ______ shares, or
______ % of the shares of Emerging Markets Growth Fund on such date.

      Certain accounts for the which the Adviser acts as investment adviser
owned ______ shares in the aggregate, or ______% of the outstanding shares of
Emerging Markets Growth Fund on January 31, 1999. The Adviser may be deemed to
be the beneficial owner of such shares but disclaims any beneficial ownership in
such shares.

      As of January 31, 1999, ______ shares in the aggregate, ______% of the
outstanding shares of Pacific Opportunities Fund were held in the name of
Charles Schwab & Co., Inc., 101 Montgomery Street, San Francisco, CA 94104-4122,
who may be deemed to be the beneficial owner of certain of these shares, but
disclaims any beneficial ownership therein.
    


                                       61
<PAGE>

   
      As of January 31, 1999, _______ shares in the aggregate, ______% of the
outstanding shares of Greater Europe Growth Fund were held in the name of
Charles Schwab & Co., Inc., 101 Montgomery Street, San Francisco, CA 94104-4122,
who may be deemed to be the beneficial owner of certain of these shares, but
disclaims any beneficial ownership therein.

      As of January 31, 1999, ______ shares in the aggregate, ______% of the
outstanding shares of Greater Europe Growth Fund were held in the name of
Fidelity Investments Institutional Operations Company, 100 Magellan Way,
Covington, KY 41015-1987, who may be deemed to be the beneficial owner of
certain of these shares, but disclaims any beneficial ownership therein.

      To the best of each Fund's knowledge, as of January 31, 1999 no person
owned beneficially more than 5% of a Fund's outstanding shares, except as stated
above.
    

      The Directors and officers of the Corporation also serve in similar
capacities with other Scudder funds.

                                  REMUNERATION

Responsibilities of the Board--Board and Committee Meetings

   
      The Board of Directors is responsible for the general oversight of each
Fund's business. A majority of the Board's members are not affiliated with
Scudder Kemper Investments, Inc. (the "Adviser"). These "Independent Directors"
have primary responsibility for assuring that each Fund is managed in the best
interests of its shareholders.

      The Board of Directors meets at least quarterly to review the investment
performance of each Fund and other operational matters, including policies and
procedures designated to assure compliance with various regulatory requirements.
At least annually, the Independent Directors review the fees paid to the Adviser
and its affiliates for investment advisory services and other administrative and
shareholder services. In this regard, they evaluate, among other things, each
Fund's investment performance, the quality and efficiency of the various other
services provided, costs incurred by the Adviser and its affiliates, and
comparative information regarding fees and expenses of competitive funds. They
are assisted in this process by each Fund's independent public accountants and
by independent legal counsel selected by the Independent Directors.

      All of the Independent Directors serve on the Committee on Independent
Directors, which nominates Independent Trustees and considers other related
matters, and the Audit Committee, which selects each Fund's independent public
accountants and reviews accounting policies and controls. In addition,
Independent Directors from time to time have established and served on task
forces and subcommittees focusing on particular matters such as investment,
accounting and shareholder service issues.
    

Compensation of Officers and Directors

      The Independent Directors receive the following compensation: an annual
director's fee of $4,000; a fee of $400 for attendance at each Board meeting,
audit committee meeting, or other meeting held for the purposes of considering
arrangements between the Funds and the Adviser or any affiliate of the Adviser;
$150 for any other committee meeting (although in some cases the Independent
Directors have waived committee meeting fees); and reimbursement of expenses
incurred for travel to and from Board Meetings. No additional compensation is
paid to any Independent Director for travel time to meetings, attendance at
directors' educational seminars or conferences, service on industry or
association committees, participation as speakers at directors' conferences,
service on special director task forces or subcommittees or service as lead or
liaison director. Independent Directors do not receive any employee benefits
such as pension, retirement or health insurance.

      The Independent Directors also serve in the same capacity for other funds
managed by the Adviser. These funds differ broadly in type and complexity and in
some cases have substantially different Director fee schedules. The following
table shows the aggregate compensation received by each Independent Director
during 1997 from the Corporation and from all of the Scudder funds as a group.


                                       62
<PAGE>

   
<TABLE>
<CAPTION>
              Name                 Scudder International Fund, Inc.*      All Scudder Funds
              ----                 ---------------------------------      -----------------

<S>                                             <C>                    <C>
Paul Bancroft III, Director                     $43,400                 $156,922 (20 funds)

Sheryle J. Bolton, Director**                    $9,285                  $86,213 (20 funds)

William T. Burgin, Director**                    $9,285                  $85,950 (20 funds)

Thomas J. Devine, Director                      $50,400                 $187,348 (21 funds)

Keith R. Fox, Director                          $52,950                 $134,390 (18 funds)

William H. Gleysteen, Jr.,                      $48,900                $136,150*** (15 funds)
Director

William H. Luers, Director                      $49,800                 $117,729 (20 funds)

Wilson Nolen, Director                          $46,900                 $189,548 (21 funds)

Dr. Gordon Shillinglaw,                         $42,215                 $139,324 (26 funds)
Director
</TABLE>

*   Scudder International Fund, Inc. consists of six funds: Scudder
    International Fund, Scudder Latin America Fund, Scudder Pacific
    Opportunities Fund, Scudder Greater Europe Growth Fund, Scudder Emerging
    Markets Growth Fund and Scudder International Growth and Income Fund.
**  Elected as Director on October 27, 1997.
*** This amount does not reflect $6,098 in retirement benefits accrued as part
    of Fund Complex expenses, and $3,000 in estimated annual benefits payable
    upon retirement. Retirement benefits accrued and proposed are to be paid to
    Mr. Gleysteen as additional compensation for serving on the Board of The
    Japan Fund, Inc.

      Members of the Board of Directors who are employees of the Adviser or its
affiliates receive no direct compensation from the Corporation, although they
are compensated as employees of the Adviser, or its affiliates, as a result of
which they may be deemed to participate in fees paid by each Fund.

                                   DISTRIBUTOR

      The Corporation has an underwriting agreement with Scudder Investor
Services, Inc. (the "Distributor"), a Massachusetts corporation, which is a
subsidiary of the Adviser, a Delaware corporation. The Corporation's
underwriting agreement dated September 7, 1998 will remain in effect until
September 30, 1999 and from year to year thereafter only if its continuance is
approved annually by a majority of the members of the Board of Directors who are
not parties to such agreement or interested persons of any such party and either
by vote of a majority of the Board of Directors or a majority of the outstanding
voting securities of each Fund. The underwriting agreement was last approved by
the Directors on August 6, 1998.
    

      Under the underwriting agreement, the Funds are responsible for: the
payment of all fees and expenses in connection with the preparation and filing
with the SEC of its registration statement and prospectus and any amendments and
supplements thereto; the registration and qualification of shares for sale in
the various states, including registering each Fund as a broker or dealer in
various states, as required; the fees and expenses of preparing, printing and
mailing


                                       63
<PAGE>

prospectuses annually to existing shareholders (see below for expenses relating
to prospectuses paid by the Distributor); notices, proxy statements, reports or
other communications to shareholders of a Fund; the cost of printing and mailing
confirmations of purchases of shares and any prospectuses accompanying such
confirmations; any issuance taxes and/or any initial transfer taxes; a portion
of shareholder toll-free telephone charges and expenses of shareholder service
representatives; the cost of wiring funds for share purchases and redemptions
(unless paid by the shareholder who initiates the transaction); the cost of
printing and postage of business reply envelopes; and a portion of the cost of
computer terminals used by both the Funds and the Distributor.

      The Distributor will pay for printing and distributing prospectuses or
reports prepared for its use in connection with the offering of the Fund's
shares to the public and preparing, printing and mailing any other literature or
advertising in connection with the offering of shares of each Fund to the
public. The Distributor will pay all fees and expenses in connection with its
qualification and registration as a broker or dealer under federal and state
laws, a portion of the cost of toll-free telephone service and expenses of
shareholder service representatives, a portion of the cost of computer
terminals, and expenses of any activity which is primarily intended to result in
the sale of shares issued by a Fund, unless a Rule 12b-1 Plan is in effect which
provides that a Fund shall bear some or all of such expenses.

Note: Although each Fund does not currently have a 12b-1 Plan, and the Directors
      have no current intention of adopting one, a Fund would also pay those
      fees and expenses permitted to be paid or assumed by a Fund pursuant to a
      12b-1 Plan, if any, were adopted by a Fund, notwithstanding any other
      provision to the contrary in the underwriting agreement.

      As agent, the Distributor currently offers shares of each Fund on a
continuous basis to investors in all states in which shares of a Fund may from
time to time be registered or where permitted by applicable law. The
underwriting agreement provides that the Distributor accepts orders for shares
at net asset value as no sales commission or load is charged to the investor.
The Distributor has made no firm commitment to acquire shares of each Fund.

                                      TAXES

      (See "Distribution and performance information--Dividends and capital
       gains distributions" and "Transaction information--Tax information,
             Tax identification number" in the Funds' prospectuses.)

      Each Fund has elected to be treated as a regulated investment company
under Subchapter M of the Code, or a predecessor statute and has qualified as
such since its inception. It intends to continue to qualify for such treatment.
Such qualification does not involve governmental supervision or management of
investment practices or policy.

      A regulated investment company qualifying under Subchapter M of the Code
is required to distribute to its shareholders at least 90 percent of its
investment company taxable income (including net short-term capital gain) and
generally is not subject to federal income tax to the extent that it distributes
annually its investment company taxable income and net realized capital gains in
the manner required under the Code.

      Each Fund is subject to a 4% nondeductible excise tax on amounts required
to be but not distributed under a prescribed formula. The formula requires
payment to shareholders during a calendar year of distributions representing at
least 98% of a Fund's ordinary income for the calendar year, at least 98% of the
excess of its capital gains over capital losses (adjusted for certain ordinary
losses) realized during the one-year period ending October 31 during such year,
and all ordinary income and capital gains for prior years that were not
previously distributed.

      Investment company taxable income generally is made up of dividends,
interest and net short-term capital gains in excess of net long-term capital
losses, less expenses. Net realized capital gains for a fiscal year are computed
by taking into account any capital loss carryforward of a Fund.

      If any net realized long-term capital gains in excess of net realized
short-term capital losses are retained by a Fund for reinvestment, requiring
federal income taxes to be paid thereon by a Fund, that Fund intends to elect to
treat such capital gains as having been distributed to shareholders. As a
result, each shareholder will report such capital gains


                                       64
<PAGE>

   
as long-term capital gains taxable to individuals at a maximum 20% or 28%
capital gains rate (depending on the Fund's holding period for the assets giving
rise to the gain), will be able to claim a proportionate share of federal income
taxes paid by a Fund on such gains as a credit against the shareholder's federal
income tax liability, and will be entitled to increase the adjusted tax basis of
the shareholder's Fund shares by the difference between the shareholder's pro
rata share of such gains and the shareholder's tax credit. If a Fund makes such
an election, it may not be treated as having met the excise tax distribution
requirement.
    

      Distributions of investment company taxable income are taxable to
shareholders as ordinary income.

   
      Dividends from domestic corporations are not expected to comprise a
substantial part of a Fund's gross income. If any such dividends constitute a
portion of a Fund's gross income, a portion of the income distributions of that
Fund may be eligible for the 70% deduction for dividends received by
corporations. Shareholders will be informed of the portion of dividends which so
qualify. The dividends-received deduction is reduced to the extent the shares of
a Fund with respect to which the dividends are received are treated as
debt-financed under federal income tax law and is eliminated if either those
shares or shares of the Fund are deemed to have been held by the Fund or the
shareholder, as the case may be, for less than 46 days during the 90-day period
beginning 45 days before the shares become ex-dividend.

      Properly designated distributions of the excess of net long-term capital
gain over net short-term capital loss are taxable to shareholders at a maximum
20% or 28% capital gains rate (depending on the Fund's holding period for the
assets giving rise to the gain), regardless of the length of time the shares of
a Fund have been held by such individual shareholders. Such distributions are
not eligible for the dividends-received deduction. Any loss realized upon the
redemption of shares held at the time of redemption for six months or less will
be treated as a long-term capital loss to the extent of any amounts treated as
distributions of long-term capital gain during such six-month period.
    

      Distributions of investment company taxable income and net realized
capital gains will be taxable as described above, whether received in shares or
in cash. Shareholders electing to receive distributions in the form of
additional shares will have a cost basis for federal income tax purposes in each
share so received equal to the net asset value of a share on the reinvestment
date.

      All distributions of investment company taxable income and net realized
capital gain, whether received in shares or in cash, must be reported by each
shareholder on his or her federal income tax return. Dividends declared in
October, November or December with a record date in such a month will be deemed
to have been received by shareholders on December 31, if paid during January of
the following year. Redemptions of shares, including exchanges for shares of
another Scudder fund, may result in tax consequences (gain or loss) to the
shareholder and are also subject to these reporting requirements.

      An individual may make a deductible IRA contribution of up to $2,000 or,
if less, the amount of the individual's earned income for any taxable year only
if (i) neither the individual nor his or her spouse (unless filing separate
returns) is an active participant in an employer's retirement plan, or (ii) the
individual (and his or her spouse, if applicable) has an adjusted gross income
below a certain level ($40,050 for married individuals filing a joint return,
with a phase-out of the deduction for adjusted gross income between $40,050 and
$50,000; $25,050 for a single individual, with a phase-out for adjusted gross
income between $25,050 and $35,000). However, an individual not permitted to
make a deductible contribution to an IRA for any such taxable year may
nonetheless make nondeductible contributions up to $2,000 to an IRA (up to
$2,000 per individual for married couples if only one spouse has earned income)
for that year. There are special rules for determining how withdrawals are to be
taxed if an IRA contains both deductible and nondeductible amounts. In general,
a proportionate amount of each withdrawal will be deemed to be made from
nondeductible contributions; amounts treated as a return of nondeductible
contributions will not be taxable. Also, annual contributions may be made to a
spousal IRA even if the spouse has earnings in a given year if the spouse elects
to be treated as having no earnings (for IRA contribution purposes) for the
year.

      Distributions by a Fund result in a reduction in the net asset value of
that Fund's shares. Should a distribution reduce the net asset value below a
shareholder's cost basis, such distribution would nevertheless be taxable to the
shareholder as ordinary income or capital gain as described above, even though,
from an investment standpoint, it may constitute a partial return of capital. In
particular, investors should consider the tax implications of buying shares just


                                       65
<PAGE>

prior to a distribution. The price of shares purchased at that time includes the
amount of the forthcoming distribution. Those purchasing just prior to a
distribution will then receive a partial return of capital upon the
distribution, which will nevertheless be taxable to them.

   
      Each Fund intends to qualify for and may make the election permitted under
Section 853 of the Code so that shareholders may (subject to limitations) be
able to claim a credit or deduction on their federal income tax returns for, and
will be required to treat as part of the amounts distributed to them, their pro
rata portion of qualified taxes paid by a Fund to foreign countries (which taxes
relate primarily to investment income). Each Fund may make an election under
Section 853 of the Code, provided that more than 50% of the value of the total
assets of a Fund at the close of the taxable year consists of securities in
foreign corporations. The foreign tax credit available to shareholders is
subject to certain limitations imposed by the Code except in the case of certain
electing individual shareholders who have limited creditable foreign taxes and
no foreign source income other than passive investment-type income. Furthermore,
the foreign tax credit is eliminated with respect to foreign taxes withheld on
dividends if the dividend-paying shares or the shares of the Fund are held by
the Fund or the shareholder, as the case may be, for less than 16 days (46 days
in the case of preferred shares) during the 30-day period (90-day period for
preferred shares) beginning 15 days (45 days for preferred shares) before the
shares become ex-dividend.
    

      If a Fund does not make the election permitted under section 853 any
foreign taxes paid or accrued will represent an expense to the Fund which will
reduce its investment company taxable income. Absent this election, shareholders
will not be able to claim either a credit or a deduction for their pro rata
portion of such taxes paid by a Fund, nor will shareholders be required to treat
as part of the amounts distributed to them their pro rata portion of such taxes
paid.

      Equity options (including covered call options written on portfolio stock)
and over-the-counter options on debt securities written or purchased by a Fund
will be subject to tax under Section 1234 of the Code. In general, no loss will
be recognized by a Fund upon payment of a premium in connection with the
purchase of a put or call option. The character of any gain or loss recognized
(i.e. long-term or short-term) will generally depend, in the case of a lapse or
sale of the option, on a Fund's holding period for the option, and in the case
of the exercise of a put option, on a Fund's holding period for the underlying
property. The purchase of a put option may constitute a short sale for federal
income tax purposes, causing an adjustment in the holding period of any property
in a Fund's portfolio similar to the property underlying the put option. If a
Fund writes an option, no gain is recognized upon its receipt of a premium. If
the option lapses or is closed out, any gain or loss is treated as short-term
capital gain or loss. If the option is exercised, the character of the gain or
loss depends on the holding period of the underlying stock.

      Positions of a Fund which consist of at least one stock and at least one
stock option or other position with respect to a related security which
substantially diminishes that Fund's risk of loss with respect to such stock
could be treated as a "straddle" which is governed by Section 1092 of the Code,
the operation of which may cause deferral of losses, adjustments in the holding
periods of stocks or securities and conversion of short-term capital losses into
long-term capital losses. An exception to these straddle rules exists for
certain "qualified covered call options" on stock written by the relevant Fund.

   
      Many futures and forward contracts entered into by a Fund and listed
nonequity options written or purchased by a Fund (including options on debt
securities, options on futures contracts, options on securities indices and
options on currencies), will be governed by Section 1256 of the Code. Absent a
tax election to the contrary, gain or loss attributable to the lapse, exercise
or closing out of any such position generally will be treated as 60% long-term
and 40% short-term capital gain or loss, and on the last trading day of the
Fund's fiscal year, all outstanding Section 1256 positions will be marked to
market (i.e., treated as if such positions were closed out at their closing
price on such day), with any resulting gain or loss recognized as 60% long-term
and 40% short-term capital gain or loss. Under Section 988 of the Code,
discussed below, foreign currency gain or loss from foreign currency-related
forward contracts, certain futures and options and similar financial instruments
entered into or acquired by a Fund will be treated as ordinary income or loss.

      Positions of a Fund which consist of at least one position not governed by
Section 1256 and at least one futures or forward contract or nonequity option or
other position governed by Section 1256 which substantially diminishes that
Fund's risk of loss with respect to such other position will be treated as a
"mixed straddle." Although
    


                                       66
<PAGE>

mixed straddles are subject to the straddle rules of Section 1092 of the Code,
the operation of which may cause deferral of losses, adjustments in the holding
periods of securities and conversion of short-term capital losses into long-term
capital losses, certain tax elections exist for them which reduce or eliminate
the operation of these rules. Each Fund will monitor its transactions in
options, foreign currency futures and forward contracts and may make certain tax
elections in connection with these investments.

   
      Notwithstanding any of the foregoing, recent tax law changes may require
the Fund to recognize gain (but not loss) from a constructive sale of certain
"appreciated financial positions" if the Fund enters into a short sale,
offsetting notional principal contract, futures or forward contract transaction
with respect to the appreciated position or substantially identical property.
Appreciated financial positions subject to this constructive sale treatment are
interests (including options, futures and forward contracts and short sales) in
stock, partnership interests, certain actively traded trust instruments and
certain debt instruments. Constructive sale treatment of appreciated financial
positions does not apply to certain transactions closed in the 90-day period
ending with the 30th day after the close of the Fund's taxable year, if certain
conditions are met.
    

      Similarly, if a Fund enters into a short sale of property that becomes
substantially worthless, the Fund will be required to recognize gain at that
time as though it had closed the short sale. Future regulations may apply
similar treatment to other strategic transactions with respect to property that
becomes substantially worthless.

      Under the Code, gains or losses attributable to fluctuations in exchange
rates which occur between the time a Fund accrues interest or other receivables
or accrues expenses or other liabilities denominated in a foreign currency and
the time that Fund actually collects such receivables or pays such liabilities
generally are treated as ordinary income or ordinary loss. Similarly, on
disposition of debt securities denominated in a foreign currency and on
disposition of certain options, futures and forward contracts, gains or losses
attributable to fluctuations in the value of foreign currency between the date
of acquisition of the security or contract and the date of disposition are also
treated as ordinary gain or loss. These gains or losses, referred to under the
Code as "Section 988" gains or losses, may increase or decrease the amount of a
Fund's investment company taxable income to be distributed to its shareholders
as ordinary income.

      If a Fund invests in stock of certain foreign investment companies, that
Fund may be subject to U.S. federal income taxation on a portion of any "excess
distribution" with respect to, or gain from the disposition of, such stock. The
tax would be determined by allocating such distribution or gain ratably to each
day of a Fund's holding period for the stock. The distribution or gain so
allocated to any taxable year of a Fund, other than the taxable year of the
excess distribution or disposition, would be taxed to that Fund at the highest
ordinary income rate in effect for such year, and the tax would be further
increased by an interest charge to reflect the value of the tax deferral deemed
to have resulted from the ownership of the foreign company's stock. Any amount
of distribution or gain allocated to the taxable year of the distribution or
disposition would be included in a Fund's investment company taxable income and,
accordingly, would not be taxable to that Fund to the extent distributed by the
Fund as a dividend to its shareholders.

   
      Each Fund may make an election to mark to market its shares of these
foreign investment companies , in lieu of being subject to U.S. federal income
taxation. At the end of each taxable year to which the election applies, each
Fund would report as ordinary income the amount by which the fair market value
of the foreign company's stock exceeds the Fund's adjusted basis in these
shares; any mark-to-market losses and any loss from an actual disposition of
stock would be deductible as ordinary losses to the extent of any net
mark-to-market gains previously included in income in prior years. The effect of
this election would be to treat excess distributions and gain on dispositions as
ordinary income which is not subject to a Fund-level tax when distributed to
shareholders as a dividend. Alternatively, the Funds may elect to include as
income and gain their share of the ordinary earnings and net capital gain of
certain foreign investment companies in lieu of being taxed in the manner
described above.
    

      If a Fund invests in certain high yield original issue discount
obligations issued by corporations, a portion of the original issue discount
accruing on the obligation may be eligible for the deduction for dividends
received by corporations. In such event, dividends of investment company taxable
income received from a Fund by its corporate shareholders, to the extent
attributable to such portion of accrued original issue discount, may be eligible
for this deduction for dividends received by corporations if so designated by a
Fund in a written notice to shareholders.


                                       67
<PAGE>

      Each Fund will be required to report to the Internal Revenue Service all
distributions of investment company taxable income and capital gains as well as
gross proceeds from the redemption or exchange of Fund shares, except in the
case of certain exempt shareholders. Under the backup withholding provisions of
Section 3406 of the Code, distributions of investment company taxable income and
capital gains and proceeds from the redemption or exchange of the shares of a
regulated investment company may be subject to withholding of federal income tax
at the rate of 20% in the case of non-exempt shareholders who fail to furnish
the investment company with their taxpayer identification numbers and with
required certifications regarding their status under the federal income tax law.
Withholding may also be required if a Fund is notified by the IRS or a broker
that the taxpayer identification number furnished by the shareholder is
incorrect or that the shareholder has previously failed to report interest or
dividend income. If the withholding provisions are applicable, any such
distributions and proceeds, whether taken in cash or reinvested in additional
shares, will be reduced by the amounts required to be withheld.

      Shareholders of each Fund may be subject to state and local taxes on
distributions received from a Fund and on redemptions of a Fund's shares.

   
      The foregoing discussion of U.S. federal income tax law relates solely to
the application of that law to U.S. persons, i.e., U.S. citizens and residents
and U.S. corporations, partnerships, trusts and estates. Each shareholder who is
not a U.S. person should consider the U.S. and foreign tax consequences of
ownership of shares of a Fund, including the possibility that such a shareholder
may be subject to a U.S. withholding tax at a rate of 30% (or at a lower rate
under an applicable income tax treaty) on amounts constituting ordinary income
received by him or her, where such amounts are treated as income from U.S.
sources under the Code.
    

      Shareholders should consult their tax advisers about the application of
the provisions of tax law described in this statement of additional information
in light of their particular tax situations.

                             PORTFOLIO TRANSACTIONS

Brokerage Commissions

   
       Allocation of brokerage is supervised by the Adviser.

      The primary objective of the Adviser in placing orders for the purchase
and sale of securities for a Fund is to obtain the most favorable net results,
taking into account such factors as price, commission where applicable, size of
order, difficulty of execution and skill required of the executing
broker/dealer. The Adviser seeks to evaluate the overall reasonableness of
brokerage commissions paid (to the extent applicable) through the familiarity of
the Distributor with commissions charged on comparable transactions, as well as
by comparing commissions paid by a Fund to reported commissions paid by others.
The Adviser reviews on a routine basis commission rates, execution and
settlement services performed, making internal and external comparisons.

      The Funds' purchases and sales of fixed-income securities are generally
placed by the Adviser with primary market makers for these securities on a net
basis, without any brokerage commission being paid by a Fund. Trading does,
however, involve transaction costs. Transactions with dealers serving as primary
market makers reflect the spread between the bid and asked prices. Purchases of
underwritten issues may be made, which will include an underwriting fee paid to
the underwriter.

      When it can be done consistently with the policy of obtaining the most
favorable net results, it is the Adviser's practice to place such orders with
broker/dealers who supply research, market and statistical information to a
Fund. The term "research, market and statistical information" includes advice as
to the value of securities; the advisability of investing in, purchasing or
selling securities; the availability of securities or purchasers or sellers of
securities; and analyses and reports concerning issuers, industries, securities,
economic factors and trends, portfolio strategy and the performance of accounts.
The Adviser is authorized when placing portfolio transactions for a Fund to pay
a brokerage commission in excess of that which another broker might charge for
executing the same transaction on account of execution services and the receipt
of research, market or statistical information. The Adviser will not place
orders with broker/dealers on the basis that the broker/dealer has or has not
sold shares of a Fund. In effecting transactions in over-
    


                                       68
<PAGE>

   
the-counter securities, orders are placed with the principal market makers for
the security being traded unless, after exercising care, it appears that more
favorable results are available elsewhere.

      To the maximum extent feasible, it is expected that the Adviser will place
orders for portfolio transactions through the Distributor, which is a
corporation registered as a broker-dealer and a subsidiary of the Adviser; the
Distributor will place orders on behalf of the Funds with issuers, underwriters
or other brokers and dealers. The Distributor will not receive any commission,
fee or other remuneration from the Funds for this service.

      Although certain research, market and statistical information from
broker/dealers may be useful to a Fund and to the Adviser, it is the opinion of
the Adviser that such information only supplements the Adviser's own research
effort since the information must still be analyzed, weighed, and reviewed by
the Adviser's staff. Such information may be useful to the Adviser in providing
services to clients other than a Fund, and the Adviser in connection with a Fund
uses not all such information. Conversely, such information provided to the
Adviser by broker/dealers through whom other clients of the Adviser effect
securities transactions may be useful to the Adviser in providing services to a
Fund.

      The Directors review from time to time whether the recapture for the
benefit of a Fund of some portion of the brokerage commissions or similar fees
paid by a Fund on portfolio transactions is legally permissible and advisable.

      For the fiscal years ended October 31, 1995, 1996 and 1997, Latin America
Fund paid brokerage commissions of $1,422,389, $789,007 and $2,026,481,
respectively. For the fiscal year ended October 31, 1997, $2,021,746 (99.8%) of
the total brokerage commissions paid by the Fund resulted from orders placed,
consistent with the policy of obtaining the most favorable net results, with
brokers and dealers who provided supplementary research, market and statistical
information to the Fund or the Adviser. The amount of such transactions
aggregated $782,786,191 (99.4%) of all brokerage transactions. Such brokerage
was not allocated to any particular brokers or dealers or with any regard to the
provision of market quotations for purposes of valuing the Fund's portfolio or
to any other special factors.

      For the fiscal years ended October 31, 1995, 1996 and 1997, Pacific
Opportunities Fund paid brokerage commissions of $3,060,256, $3,845,527 and
$2,958,875, respectively. For the fiscal year ended October 31, 1997, $2,930,260
(99%) of the total brokerage commissions paid by the Fund resulted from orders
placed, consistent with the policy of obtaining the most favorable net results,
with brokers and dealers who provided supplementary research, market and
statistical information to the Fund or the Adviser. The amount of such
transactions aggregated $600,064,259 (96.8%) of all brokerage transactions. Such
brokerage was not allocated to any particular brokers or dealers or with any
regard to the provision of market quotations for purposes of valuing the Fund's
portfolio or to any other special factors.

      For the fiscal years ended October 31, 1995, 1996 and 1997, Greater Europe
Growth Fund paid brokerage commissions of $$297,035 and $819,301, respectively.
For the fiscal year ended October 31, 1997, $815,448 (99.5%) of the total
brokerage commissions paid by the Fund resulted in orders placed, consistent
with the policy of obtaining the most favorable net results, with brokers and
dealers who provided supplementary research, market and statistical information
to the Fund or the Adviser. The amount of such transactions aggregated
$284,721,327 (90.4%) of all brokerage transactions. Such brokerage was not
allocated to any particular brokers or dealers or with any regard to the
provision of market quotations for purposes of valuing the Fund's portfolio or
to any other special factors.

      For the fiscal years ended October 31, 1996 and 1997, Emerging Markets
Growth Fund paid brokerage commissions of $468,942 and $1,448,573, respectively.
For the fiscal year ended October 31, 1997, $1,385,660 (96%) of the total
brokerage commissions paid by the Fund resulted in orders placed, consistent
with the policy of obtaining the most favorable net results, with brokers and
dealers who provided supplementary research, market and statistical information
to the Fund or the Adviser. The amount of such transactions aggregated
$284,996,582 (91%) of all brokerage transactions. Such brokerage was not
allocated to any particular brokers or dealers or with any regard to the
provision of market quotations for purposes of valuing the Fund's portfolio or
to any other special factors.
    

      The Directors review from time to time whether the recapture for the
benefit of a Fund of some portion of the brokerage commissions or similar fees
paid by a Fund on portfolio transactions is legally permissible and advisable.


                                       69
<PAGE>

Portfolio Turnover

   
      Latin America Fund's average annual portfolio turnover rate, i.e. the
ratio of the lesser of sales or purchases to the monthly average value of the
portfolio (excluding from both the numerator and the denominator all securities
with maturities at the time of acquisition of one year or less), for the fiscal
years ended October 31, 1995, 1996 and 1997, was 39.5%, 22.4% and 41.8%,
respectively. For the fiscal years ended October 31, 1995, 1996 and 1997,
Pacific Opportunities Fund had a portfolio turnover rate of 64.0%, 95.4% and
97.2%, respectively. For the fiscal years ended October 31, 1995, 1996 and 1997,
Greater Europe Growth Fund had a portfolio turnover rate of 27.9%, 39.0% and
88.8%, respectively. For the fiscal year ended October 31, 1996 and 1997,
Emerging Markets Growth Fund had a portfolio turnover rate of 19.5% and 61.5%,
respectively. Higher levels of activity by the Funds result in higher
transaction costs and may also result in taxes on realized capital gains to be
borne by the Funds' shareholders. Purchases and sales are made for a Fund
whenever necessary, in management's opinion, to meet the Funds' objectives.
    

                                 NET ASSET VALUE

   
      The net asset value of shares of a Fund is computed as of the close of
regular trading on the Exchange on each day the Exchange is open for trading.
The Exchange is scheduled to be closed on the following holidays: New Year's
Day, Martin Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Thanksgiving and Christmas. Net asset value per
share is determined by dividing the value of the total assets of the Fund, less
all liabilities, by the total number of shares outstanding.

      An exchange-traded equity security is valued at its most recent sale
price. Lacking any sales, the security is valued at the calculated mean between
the most recent bid quotation and the most recent asked quotation (the
"Calculated Mean"). Lacking a Calculated Mean, the security is valued at the
most recent bid quotation. An equity security which is traded on the Nasdaq
Stock Market ("Nasdaq")"" system is valued at its most recent sale price.
Lacking any sales, the security is valued at the most recent ""bid quotation.
The value of an equity security not quoted on the Nasdaq System, but traded in
another over-the-counter market, is its most recent sale price. Lacking any
sales, the security is valued at the Calculated Mean. Lacking a Calculated Mean,
the security is valued at the most recent bid quotation.

      Debt securities, other than short-term securities, are valued at prices
supplied by the Fund's pricing agent(s) which reflect broker/dealer supplied
valuations and electronic data processing techniques. Short-term securities with
remaining maturities of sixty days or less shall be valued by the amortized cost
method, which the Board believes approximates market value. If it is not
possible to value a particular debt security pursuant to these valuation
methods, the value of such security is the most recent bid quotation supplied by
a bona fide marketmaker. If it is not possible to value a particular debt
security pursuant to the above methods, the Adviser may calculate the price of
that debt security, subject to limitations established by the Board.
    

      An exchange traded options contract on securities, currencies, futures and
other financial instruments is valued at its most recent sale price on such
exchange. Lacking any sales, the options contract is valued at the Calculated
Mean. Lacking any Calculated Mean, the options contract is valued at the most
recent bid quotation in the case of a purchased options contract, or the most
recent asked quotation in the case of a written options contract. An options
contract on securities, currencies and other financial instruments traded
over-the-counter is valued at the most recent bid quotation in the case of a
purchased options contract and at the most recent asked quotation in the case of
a written options contract. Futures contracts are valued at the most recent
settlement price. Foreign currency exchange forward contracts are valued at the
value of the underlying currency at the prevailing exchange rate.

      If a security is traded on more than one exchange, or upon one or more
exchanges and in the over-the-counter market, quotations are taken from the
market in which the security is traded most extensively.

   
      If, in the opinion of each Fund's Valuation Committee, the value of a
portfolio asset as determined in accordance with these procedures does not
represent the fair market value of the portfolio asset, the value of the
portfolio asset is taken to be an amount which, in the opinion of the Valuation
Committee, represents fair market value on the basis of all available
information. The value of other portfolio holdings owned by the Fund is
determined in a manner
    


                                       70
<PAGE>

which, in the discretion of the Valuation Committee most fairly reflects fair
market value of the property on the valuation date.

      Following the valuations of securities or other portfolio assets in terms
of the currency in which the market quotation used is expressed ("Local
Currency"), the value of these portfolio assets in terms of U.S. dollars is
calculated by converting the Local Currency into U.S. dollars at the prevailing
currency exchange rate on the valuation date.

                             ADDITIONAL INFORMATION

Experts

   
      The financial highlights of each Fund included in the Funds' prospectuses
and the financial statements incorporated by reference in this Statement of
Additional Information have been so included or incorporated by reference in
reliance on the accompanying report of Coopers & Lybrand, L.L.P., One Post
Office Square, Boston, Massachusetts 02109, independent accountants, and given
upon their authority as experts in accounting and auditing. Coopers & Lybrand
L.L.P. is responsible for performing annual audits of the financial statements
and financial highlights of each Fund in accordance with Generally Accepted
Auditing Standards, and the preparation of federal tax returns.
    

Other Information

      Many of the investment changes in each Fund will be made at prices
different from those prevailing at the time they may be reflected in a regular
report to shareholders of a Fund. These transactions will reflect investment
decisions made by the Adviser in the light of its other portfolio holdings and
tax considerations and should not be construed as recommendations for similar
action by other investors.

      The CUSIP number of Latin America Fund is 811165 20 8.

      The CUSIP number of Pacific Opportunities Fund is 811165 30 7.

      The CUSIP number of Greater Europe Growth Fund is 811165 40 6.

      The CUSIP number of Emerging Markets Growth Fund is 811165 50 5.

      Each Fund has a fiscal year end of October 31.

      Dechert Price & Rhoads acts as general counsel for the Funds.

   
TO BE UPDATED

      Each Fund employs Brown Brothers Harriman & Company, 40 Water Street,
Boston, Massachusetts 02109 as Custodian. Brown Brothers Harriman & Company have
entered into agreements with foreign subcustodians approved by the Directors of
the Corporation pursuant to Rule 17f-5 of the 1940 Act.

      Scudder Service Corporation ("Service Corporation"), P.O. Box 2291,
Boston, Massachusetts, 02107-2291, a subsidiary of the Adviser, is the transfer
and dividend disbursing agent for each Fund. Service Corporation also serves as
shareholder service agent and provides subaccounting and recordkeeping services
for shareholder accounts in certain retirement and employee benefit plans. The
Funds pay Service Corporation an annual fee for each account maintained by the
participant. For the fiscal year ended October 31, 1996 and 1997, Latin America
Fund incurred charges of $1,514,806 and $2,362,155, respectively, of which
$189,399 was unpaid at October 31, 1997. For the fiscal year ended October 31,
1996 and 1997, Pacific Opportunities Fund incurred charges of $843,600 and
$1,057,225, respectively, of which $69,912 was unpaid at October 31, 1997. For
the fiscal year ended October 31, 1996 and 1997, Greater Europe Growth Fund
incurred charges of $177,772 and $471,548, respectively, of which
    


                                       71
<PAGE>

   
$38,097 was unpaid at October 31, 1997. For the fiscal year ended October 31,
1996 and 1997, Emerging Markets Growth Fund incurred charges of $7,530 and
$58,165 not imposed, respectively, of which $42,661 was unpaid at October 31,
1997.

      The Funds, or the Adviser (including any affiliate of the Adviser), or
both, may pay unaffiliated third parties for providing recordkeeping and other
administrative services with respect to accounts of participants in retirement
plans or other beneficial owners of Fund shares whose interests are held in an
omnibus account.

      Annual service fees are paid by each Fund to Scudder Trust Company, Two
International Place, Boston, Massachusetts, 02110-4103, an affiliate of the
Adviser, for certain retirement plan accounts. Each Fund pays Scudder Trust
Company an annual fee of $17.55 per shareholder account. For the fiscal year
ended October 31, 1995, 1996 and 1997, Latin America Fund incurred charges of
$0, $5,093 and $24,787, respectively, of which $2,912 was unpaid at October 31,
1997. For the fiscal year ended October 31, 1995, 1996 and 1997, Pacific
Opportunities Fund incurred charges of $36,281 $38,591 and $56,892,
respectively, of which $3,816 was unpaid at October 31, 1997. For the fiscal
year ended October 31, 1995, 1996 and 1997, Greater Europe Growth Fund incurred
charges of $931, $9,227 and $26,110, respectively, of which $2,289 was unpaid at
October 31, 1997. For the fiscal year ended October 31, 1996 and 1997, Emerging
Markets Growth Fund incurred charges of $178, of which $1,375 was not imposed
and $41,624, respectively, of which $5,496 was unpaid at October 31, 1997.

      Scudder Fund Accounting Corporation, Two International Place, Boston,
Massachusetts 02110-4103, a subsidiary of the Adviser, computes net asset values
for the Funds. Each Fund pays Scudder Fund Accounting Corporation an annual fee
equal to 0.065% of the first $150 million of average daily net assets, 0.04% of
such assets in excess of $150 million and 0.02% of such assets in excess of $1
billion, plus holding and transaction charges for this service. For the fiscal
year ended October 31, 1996 and 1997, Latin America Fund incurred charges of
$318,478 and $447,599, respectively, of which $85,629 was unpaid at October 31,
1997. For the fiscal year ended October 31, 1996 and 1997, Pacific Opportunities
Fund incurred charges of $233,855 and $192,884, respectively, of which $27,593
was unpaid at October 31, 1997. For the fiscal year ended October 31, 1996 and
1997, Greater Europe Growth Fund incurred charges of $66,529 and $135,790,
respectively, of which $24,234 was unpaid at October 31, 1997. For the fiscal
year ended October 31, 1996 and 1997, Emerging Markets Growth Fund incurred
charges of $4,418, $34,122 not imposed and $178,487, respectively, of which
$34,622 was unpaid at October 31, 1997.
    

      The Funds' prospectuses and this Statement of Additional Information omit
certain information contained in the Registration Statement which the Funds have
filed with the SEC under the Securities Act of 1933 and reference is hereby made
to the Registration Statement for further information with respect to a Fund and
the securities offered hereby. This Registration Statement and its amendments
are available for inspection by the public at the SEC in Washington, D.C.

                              FINANCIAL STATEMENTS

Latin America Fund

   
      The financial statements, including the Investment Portfolio of Latin
America Fund, together with the Report of Independent Accountants, Financial
Highlights and notes to financial statements, attached hereto in the Annual
Report to the Shareholders of the Fund dated October 31, 1998, are incorporated
by reference herein and are hereby deemed to be part of this Statement of
Additional Information.
    


                                       72
<PAGE>

Pacific Opportunities Fund

   
      The financial statements, including the Investment Portfolio of Pacific
Opportunities Fund, together with the Report of Independent Accountants,
Financial Highlights and notes to financial statements, attached hereto in the
Annual Report to the Shareholders of the Fund dated October 31, 1998, are
incorporated by reference herein and are hereby deemed to be part of this
Statement of Additional Information.
    

Greater Europe Growth Fund

   
      The financial statements, including the Investment Portfolio of Greater
Europe Growth Fund, together with the Report of Independent Accountants,
Financial Highlights and notes to financial statements, attached hereto in the
Annual Report to the Shareholders of the Fund dated October 31, 1998, are
incorporated by reference herein and are hereby deemed to be part of this
Statement of Additional Information.
    

Emerging Markets Growth Fund

   
      The financial statements, including the Investment Portfolio of Emerging
Markets Growth Fund, together with the Report of Independent Accountants,
Financial Highlights and notes to financial statements, attached hereto in the
Annual Report to the Shareholders of the Fund dated October 31, 1998, are
incorporated by reference herein and are hereby deemed to be part of this
Statement of Additional Information.
    


                                       73
<PAGE>

                                    APPENDIX

      The following is a description of the ratings given by Moody's and S&P to
corporate bonds.

Ratings of Corporate Bonds

      S&P:

      Debt rated AAA has the highest rating assigned by S&P. Capacity to pay
interest and repay principal is extremely strong. Debt rated AA has a very
strong capacity to pay interest and repay principal and differs from the highest
rated issues only in small degree. Debt rated A has a strong capacity to pay
interest and repay principal although it is somewhat more susceptible to the
adverse effects of changes in circumstances and economic conditions than debt in
higher rated categories. Debt rated BBB is regarded as having an adequate
capacity to pay interest and repay principal. Whereas it normally exhibits
adequate protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay interest and
repay principal for debt in this category than in higher rated categories.

      Debt rated BB, B, CCC, CC and C is regarded as having predominantly
speculative characteristics with respect to capacity to pay interest and repay
principal. BB indicates the least degree of speculation and C the highest. While
such debt will likely have some quality and protective characteristics, these
are outweighed by large uncertainties or major exposures to adverse conditions.

      Debt rated BB has less near-term vulnerability to default than other
speculative issues. However, it faces major ongoing uncertainties or exposure to
adverse business, financial, or economic conditions which could lead to
inadequate capacity to meet timely interest and principal payments. The BB
rating category is also used for debt subordinated to senior debt that is
assigned an actual or implied BBB- rating. Debt rated B has a greater
vulnerability to default but currently has the capacity to meet interest
payments and principal repayments. Adverse business, financial, or economic
conditions will likely impair capacity or willingness to pay interest and repay
principal. The B rating category is also used for debt subordinated to senior
debt that is assigned an actual or implied BB or BB- rating.

      Debt rated CCC has a currently identifiable vulnerability to default, and
is dependent upon favorable business, financial, and economic conditions to meet
timely payment of interest and repayment of principal. In the event of adverse
business, financial, or economic conditions, it is not likely to have the
capacity to pay interest and repay principal. The CCC rating category is also
used for debt subordinated to senior debt that is assigned an actual or implied
B or B- rating. The rating CC typically is applied to debt subordinated to
senior debt that is assigned an actual or implied CCC rating. The rating C
typically is applied to debt subordinated to senior debt, which is assigned an
actual or implied CCC- debt rating. The C rating may be used to cover a
situation where a bankruptcy petition has been filed, but debt service payments
are continued. The rating C1 is reserved for income bonds on which no interest
is being paid. Debt rated D is in payment default. The D rating category is used
when interest payments or principal payments are not made on the date due even
if the applicable grace period had not expired, unless S&P believes that such
payments will be made during such grace period. The D rating also will be used
upon the filing of a bankruptcy petition if debt service payments are
jeopardized.

      Moody's:

      Bonds, which are rated Aaa, are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred to as
"gilt edge." Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues. Bonds which are rated Aa are
judged to be of high quality by all standards. Together with the Aaa group they
comprise what are generally known as high grade bonds. They are rated lower than
the best bonds because margins of protection may not be as large as in Aaa
securities or fluctuation of protective elements may be of greater amplitude or
there may be other elements present which make the long term risks appear
somewhat larger than in Aaa securities. Bonds which are rated A possess many
favorable investment attributes and are to be considered as upper medium grade
obligations. Factors giving security to

<PAGE>

principal and interest are considered adequate but elements may be present which
suggest a susceptibility to impairment sometime in the future.

      Bonds which are rated Baa are considered as medium grade obligations,
i.e., they are neither highly protected nor poorly secured. Interest payments
and principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well. Bonds which are rated Ba are
judged to have speculative elements; their future cannot be considered as well
assured. Often the protection of interest and principal payments may be very
moderate and thereby not well safeguarded during both good and bad times over
the future. Uncertainty of position characterizes bonds in this class. Bonds
which are rated B generally lack characteristics of the desirable investment.
Assurance of interest and principal payments or of maintenance of other terms of
the contract over any long period of time may be small.

      Bonds which are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to principal or
interest. Bonds which are rated Ca represent obligations which are speculative
in a high degree. Such issues are often in default or have other marked
shortcomings. Bonds which are rated C are the lowest rated class of bonds and
issues so rated can be regarded as having extremely poor prospects of ever
attaining any real investment standing.

<PAGE>
                        SCUDDER INTERNATIONAL FUND, INC.

                                     PART C.
                                     -------

                                OTHER INFORMATION
                                -----------------

<TABLE>
<CAPTION>
Item 23.      Exhibits
- --------      --------

                <S>                   <C>       <C>
                (a)                   (a)(1)    Articles of Amendment and Restatement of the Registrant as of
                                                January 24, 1991.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (a)(2)    Articles Supplementary dated September 17, 1992.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (a)(3)    Articles Supplementary dated December 1, 1992.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (a)(4)    Articles Supplementary dated August 3, 1994.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (a)(5)    Articles Supplementary dated February 20, 1996.
                                                (Incorporated by reference to Exhibit 1(e) to Post-Effective
                                                Amendment No. 46 to the Registration Statement.)

                                      (a)(6)    Articles Supplementary dated September 5, 1996.
                                                (Incorporated by reference to Exhibit 1(f) to Post-Effective
                                                Amendment No. 52 to the Registration Statement.)

                                      (a)(7)    Articles Supplementary dated December 12, 1996.
                                                (Incorporated by reference to Post-Effective Amendment No. 55 to
                                                the Registration Statement.)

                                      (a)(8)    Articles Supplementary dated March 3, 1997.
                                                (Incorporated by reference to Post-Effective Amendment No. 55 to
                                                the Registration Statement.)

                                      (a)(9)    Articles Supplementary dated December 23, 1997.  (Incorporated by
                                                reference to Post-Effective Amendment No. 65 to the Registration
                                                Statement.)

                                      (a)(10)   Articles Supplementary dated March 2,1998. (Incorporated by
                                                reference to Post-Effective Amendment No. 65 to the Registration
                                                Statement.)

                                      (a)(11)   Articles Supplementary dated March 31, 1998. (Incorporated by
                                                reference to Post-Effective Amendment No. 65 to the Registration
                                                Statement.)

                                      (a)(12)   Articles of Transfer from Scudder Institutional Fund Inc., dated
                                                April 3, 1998, is filed herein.


                                 Part C - Page 1
<PAGE>

                (b)                   (b)(1)    Amended and Restated By-Laws of the Registrant dated March 4, 1991.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (b)(2)    Amended and Restated By-Laws of the Registrant dated September 20,
                                                1991.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (b)(3)    Amended and Restated By-Laws of the Registrant dated December 12,
                                                1991.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (b)(4)    Amended and Restated By-Laws of the Registrant dated September 4,
                                                1996.
                                                (Incorporated by reference to Post-Effective Amendment No. 55 to
                                                the Registration Statement.)

                                      (b)(5)    Amended and Restated By-Laws of the Registrant dated December 3,
                                                1997. (Incorporated by reference to Post-Effective Amendment No.
                                                59 to the Registration Statement.)

                (c)                             Inapplicable

                (d)                   (d)(1)    Investment Management Agreement between the Registrant, on behalf
                                                of Scudder International Fund, and Scudder Kemper Investments,
                                                Inc. dated September 7, 1998, is filed herein.

                                      (d)(2)    Investment Management Agreement between the Registrant, on behalf
                                                of Scudder Latin America Fund, and Scudder Kemper Investments,
                                                Inc. dated September 7, 1998, is filed herein.

                                      (d)(3)    Investment Management Agreement between the Registrant, on behalf
                                                of Scudder Pacific Opportunities Fund, and Scudder Kemper
                                                Investments, Inc. dated September 7, 1998, is filed herein.

                                      (d)(4)    Investment Management Agreement between the Registrant, on behalf
                                                of Scudder Greater Europe Growth Fund, and Scudder Kemper
                                                Investments, Inc. dated September 7, 1998, is filed herein.

                                      (d)(5)    Investment Management Agreement between the Registrant, on behalf
                                                of Scudder Emerging Markets Growth Fund, and Scudder Kemper
                                                Investments, Inc. dated September 7, 1998, is filed herein.

                                      (d)(6)    Investment Management Agreement between the Registrant, on behalf
                                                of Scudder International Growth and Income Fund, and Scudder
                                                Kemper Investments, Inc. dated September 7, 1998, is filed herein.

                                      (d)(7)    Investment Management Agreement between the Registrant, on behalf
                                                of Scudder International Value Fund, and Scudder Kemper
                                                Investments, Inc. dated September 7, 1998, is filed herein.


                                 Part C - Page 2
<PAGE>

                                      (d)(8)    Investment Management Agreement between the Registrant, on behalf
                                                of Scudder International Growth Fund, and Scudder Kemper
                                                Investments, Inc. dated September 7, 1998, is filed herein.

                (e)                   (e)(1)    Underwriting Agreement between the Registrant and Scudder Investor
                                                Services, Inc., dated September 7, 1998, is filed herein.

                (f)                             Inapplicable.

                (g)                   (g)(1)    Custodian Contract between the Registrant, on behalf of Scudder
                                                Latin America Fund, and Brown Brothers Harriman & Co. dated
                                                November 25, 1992.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (g)(2)    Custodian Contract between the Registrant, on behalf of Scudder
                                                Pacific Opportunities Fund, and Brown Brothers Harriman & Co.
                                                dated November 25, 1992.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (g)(3)    Custodian Contract between the Registrant, on behalf of Scudder
                                                Greater Europe Growth Fund, and Brown Brothers Harriman & Co.
                                                dated October 10, 1994.
                                                (Incorporated by reference to Post-Effective Amendment No. 44 to
                                                the Registration Statement.)

                                      (g)(4)    Custodian Contract between the Registrant and Brown Brothers
                                                Harriman & Co. dated March 7, 1995.
                                                (Incorporated by reference to Post-Effective Amendment No. 55 to
                                                the Registration Statement.)

                                      (g)(5)    Fee schedule for Exhibit (g)(4).
                                                (Incorporated by reference to Post-Effective Amendment No. 55 to
                                                the Registration Statement.)

                                      (g)(6)    Master Subcustodian Agreement between Brown Brothers Harriman &
                                                Co. and Morgan Guaranty Trust Company of New York, Brussels
                                                office, dated November 15, 1976.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (g)(7)    Fee schedule for Exhibit (g)(6).
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (g)(8)    Subcustodian Agreement between Brown Brothers Harriman & Co. and
                                                The Bank of New York, London office, dated January 30, 1979.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (g)(9)    Fee schedule for Exhibit (g)(8).
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)


                                 Part C - Page 3
<PAGE>

                                      (g)(10)   Master Subcustodian Agreement between Brown Brothers Harriman &
                                                Co. and The Chase Manhattan Bank, N.A., Singapore office, dated
                                                June 9, 1980.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (g)(11)   Fee schedule for Exhibit (g)(10).
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.).

                                      (g)(12)   Master Subcustodian Agreement between Brown Brothers Harriman &
                                                Co. and The Chase Manhattan Bank, N.A., Hong Kong office, dated
                                                June 4, 1979.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (g)(13)   Fee schedule for Exhibit (g)(12).
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (g)(14)   Master Subcustodian Agreement between Brown Brothers Harriman &
                                                Co. and Citibank, N.A. New York office, dated July 16, 1981.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (g)(15)   Fee schedule for Exhibit (g)(14).
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                (h)                   (h)(1)    Transfer Agency and Service Agreement between the Registrant and
                                                Scudder Service Corporation dated October 2, 1989.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (h)(2)    Fee schedule for Exhibit 9(a)(1).
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (h)(3)    Service Agreement between Copeland Associates, Inc. and Scudder
                                                Service Corporation dated June 8, 1995.
                                                (Incorporated by reference to Post-Effective Amendment No. 45 to
                                                the Registration Statement.)

                                      (h)(4)    Letter Agreement between the Registrant and Cazenove, Inc. dated
                                                January 23, 1978, with respect to the pricing of securities.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (h)(5)    COMPASS and TRAK 2000 Service Agreement between the Registrant and
                                                Scudder Trust Company dated October 1, 1995.
                                                (Incorporated by reference to Exhibit 9(c)(3) to Post-Effective
                                                Amendment No. 47 to the Registration Statement.)


                                 Part C - Page 4
<PAGE>

                                      (h)(6)    Shareholder Services Agreement between the Registrant and Charles
                                                Schwab & Co., Inc. dated June 1, 1990.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (h)(7)    Administrative Services Agreement between the Registrant and
                                                McGladrey & Pullen, Inc. dated September 30, 1995.
                                                (Incorporated by reference to Exhibit 9(d)(2) to Post-Effective
                                                Amendment No. 47 to the Registration Statement.)

                                      (h)(8)    Fund Accounting Services Agreement between the Registrant, on
                                                behalf of Scudder Greater Europe Growth Fund, and Scudder Fund
                                                Accounting Corporation dated October 10, 1994.
                                                (Incorporated by reference to Post-Effective Amendment No. 44 to
                                                the Registration Statement.)

                                      (h)(9)    Fund Accounting Services Agreement between the Registrant, on
                                                behalf of Scudder International Fund, and Scudder Fund Accounting
                                                Corporation dated April 12, 1995 is filed herein.
                                                (Incorporated by reference to Post-Effective Amendment No. 45 to
                                                the Registration Statement.)

                                      (h)(10)   Fund Accounting Services Agreement between the Registrant, on
                                                behalf of Scudder Latin America Fund, dated May 17, 1995.
                                                (Incorporated by reference to Exhibit 9(e)(3) to Post-Effective
                                                Amendment No. 47 to the Registration Statement.)

                                      (h)(11)   Fund Accounting Services Agreement between the Registrant, on
                                                behalf of Scudder Pacific Opportunities Fund, dated May 5, 1995.
                                                (Incorporated by reference to Exhibit 9(e)(4) to Post-Effective
                                                Amendment No. 47 to the Registration Statement.)

                                      (h)(12)   Fund Accounting Services Agreement between the Registrant, on
                                                behalf of Scudder Emerging Markets Growth Fund dated May 8, 1996.
                                                (Incorporated by reference to Exhibit 9(e)(5) to Post-Effective
                                                Amendment No. 49 to the Registration Statement.)

                                      (h)(13)   Fund Accounting Services Agreement between the Registrant, on
                                                behalf of Scudder International Growth and Income Fund dated June
                                                3, 1997.
                                                (Incorporated by reference to Post-Effective Amendment No. 56 to
                                                the Registration Statement.)

                                      (h)(14)   Fund Accounting Services Agreement between the Registrant, on
                                                behalf of Scudder International Growth Fund dated June 30, 1998,
                                                is filed herein.

                                      (h)(15)   Fund Accounting Services Agreement between the Registrant, on
                                                behalf of Scudder International Value Fund dated June 30, 1998, is
                                                filed herein.

                (i)                             Inapplicable.

                (j)                             Consents of Independent Accountants to be filed by amendment.


                                 Part C - Page 5
<PAGE>

                (k)                             Inapplicable.

                (l)                             Inapplicable.

                (m)                             Inapplicable.

                (n)                             Inapplicable.

                (o)                             Plan with respect to Scudder International Fund pursuant to
                                                Rule 18f-3.
                                                (Incorporated by reference to Post-Effective Amendment No. 58 to
                                                the Registration Statement.)
</TABLE>

Item 24.          Persons Controlled by or under Common Control with Registrant.
- --------          --------------------------------------------------------------

                  None

Item 25.          Indemnification.
- --------          ----------------

                  A policy of insurance covering Scudder Kemper Investments,
                  Inc., its affiliates including Scudder Investor Services,
                  Inc., and all of the registered investment companies advised
                  by Scudder Kemper Investments, Inc. insures the Registrant's
                  directors and officers and others against liability arising by
                  reason of an alleged breach of duty caused by any negligent
                  act, error or accidental omission in the scope of their
                  duties.

                  Article Tenth of Registrant's  Articles of Incorporation state
                  as follows:

                  TENTH:  Liability and Indemnification
                  ------  -----------------------------

                           To the fullest extent permitted by the Maryland
                  General Corporation Law and the Investment Company Act of
                  1940, no director or officer of the Corporation shall be
                  liable to the Corporation or to its stockholders for damages.
                  The limitation on liability applies to events occurring at the
                  time a person serves as a director or officer of the
                  Corporation, whether or not such person is a director or
                  officer at the time of any proceeding in which liability is
                  asserted. No amendment to these Articles of Amendment and
                  Restatement or repeal of any of its provisions shall limit or
                  eliminate the benefits provided to directors and officers
                  under this provision with respect to any act or omission which
                  occurred prior to such amendment or repeal.

                           The Corporation, including its successors and
                  assigns, shall indemnify its directors and officers and make
                  advance payment of related expenses to the fullest extent
                  permitted, and in accordance with the procedures required by
                  Maryland law, including Section 2-418 of the Maryland General
                  Corporation law, as may be amended from time to time, and the
                  Investment Company Act of 1940. The By-Laws may provide that
                  the Corporation shall indemnify its employees and/or agents in
                  any manner and within such limits as permitted by applicable
                  law. Such indemnification shall be in addition to any other
                  right or claim to which any director, officer, employee or
                  agent may otherwise be entitled.

                           The Corporation may purchase and maintain insurance
                  on behalf of any person who is or was a director, officer,
                  employee or agent of the Corporation or is or was serving at
                  the request of the Corporation as a director, officer,
                  partner, trustee, employee or agent of another foreign or
                  domestic corporation, partnership, joint venture, trust or
                  other enterprise or employee benefit plan against any
                  liability asserted against and incurred by such person in any
                  such capacity or arising out of such person's position,
                  whether or not the Corporation would have had the power to
                  indemnify against such liability.

 
                                 Part C - Page 6
<PAGE>

                           The rights provided to any person by this Article
                  shall be enforceable against the Corporation by such person
                  who shall be presumed to have relied upon such rights in
                  serving or continuing to serve in the capacities indicated
                  herein. No amendment of these Articles of Amendment and
                  Restatement shall impair the rights of any person arising at
                  any time with respect to events occurring prior to such
                  amendment.

                           Nothing in these Articles of Amendment and
                  Restatement shall be deemed to (i) require a waiver of
                  compliance with any provision of the Securities Act of 1933,
                  as amended, or the Investment Company Act of 1940, as amended,
                  or of any valid rule, regulation or order of the Securities
                  and Exchange Commission under those Acts or (ii) protect any
                  director or officer of the Corporation against any liability
                  to the Corporation or its stockholders to which he would
                  otherwise be subject by reason of willful misfeasance, bad
                  faith or gross negligence in the performance of his or her
                  duties or by reason of his or her reckless disregard of his or
                  her obligations and duties hereunder.

                  Article V of Registrant's Amended and Restated By-Laws states
                  as follows:

                                    ARTICLE V
                                    ---------

                          INDEMNIFICATION AND INSURANCE
                          -----------------------------

                           SECTION 1. Indemnification of Directors and Officers.
                  Any person who was or is a party or is threatened to be made a
                  party in any threatened, pending or completed action, suit or
                  proceeding, whether civil, criminal, administrative or
                  investigative, by reason of the fact that such person is a
                  current or former Director or officer of the Corporation, or
                  is or was serving while a Director or officer of the
                  Corporation at the request of the Corporation as a Director,
                  officer, partner, trustee, employee, agent or fiduciary or
                  another corporation, partnership, joint venture, trust,
                  enterprise or employee benefit plan, shall be indemnified by
                  the Corporation against judgments, penalties, fines, excise
                  taxes, settlements and reasonable expenses (including
                  attorneys' fees) actually incurred by such person in
                  connection with such action, suit or proceeding to the fullest
                  extent permissible under the Maryland General Corporation Law,
                  the Securities Act of 1933 and the 1940 Act, as such statutes
                  are now or hereafter in force, except that such indemnity
                  shall not protect any such person against any liability to the
                  Corporation or any stockholder thereof to which such person
                  would otherwise be subject by reason of willful misfeasance,
                  bad faith, gross negligence or reckless disregard of the
                  duties involved in the conduct of his office ("disabling
                  conduct").

                           SECTION 2. Advances. Any current or former Director
                  or officer of the Corporation claiming indemnification within
                  the scope of this Article V shall be entitled to advances from
                  the Corporation for payment of the reasonable expenses
                  incurred by him in connection with proceedings to which he is
                  a party in the manner and to the fullest extent permissible
                  under the Maryland General Corporation Law, the Securities Act
                  of 1933 and the 1940 Act, as such statutes are now or
                  hereafter in force; provided however, that the person seeking
                  indemnification shall provide to the Corporation a written
                  affirmation of his good faith belief that the standard of
                  conduct necessary for indemnification by the Corporation has
                  been met and a written undertaking by or on behalf of the
                  Director to repay any such advance if it is ultimately
                  determined that he is not entitled to indemnification, and
                  provided further that at least one of the following additional
                  conditions is met: (1) the person seeking indemnification
                  shall provide a security in form and amount acceptable to the
                  Corporation for his undertaking; (2) the Corporation is
                  insured against losses arising by reason of the advance; or
                  (3) a majority of a quorum of Directors of the Corporation who
                  are neither "interested persons" as defined in Section
                  2(a)(19) of the 1940 Act, as amended, nor parties to the
                  proceeding ("disinterested non-party Directors") or
                  independent legal counsel, in a written opinion, shall
                  determine, based on a review of facts readily available to the
                  Corporation at the time the advance is proposed to be made,
                  that there is reason to believe that the person seeking
                  indemnification will ultimately be found to be entitled to
                  indemnification.

                           SECTION 3. Procedure. At the request of any current
                  or former Director or officer, or any employee or agent whom
                  the Corporation proposes to indemnify, the Board of Directors
                  shall determine, or cause to be determined, in a manner
                  consistent with the Maryland General Corporation Law, the
                  Securities Act of 1933 and the 1940 Act, as such statutes are
                  now or hereafter in force, whether the standards required by
                  this Article V have been 

                                 Part C - Page 7
<PAGE>

                  met; provided, however, that indemnification shall be made
                  only following: (1) a final decision on the merits by a court
                  or other body before whom the proceeding was brought that the
                  person to be indemnified was not liable by reason of disabling
                  conduct or (2) in the absence of such a decision, a reasonable
                  determination, based upon a review of the facts, that the
                  person to be indemnified was not liable by reason of disabling
                  conduct, by (a) the vote of the majority of a quorum of
                  disinterested non-party Directors or (b) an independent legal
                  counsel in a written opinion.

                           SECTION 4. Indemnification of Employees and Agents.
                  Employees and agents who are not officers or Directors of the
                  Corporation may be indemnified, and reasonable expenses may be
                  advanced to such employees or agents, in accordance with the
                  procedures set forth in this Article V to the extent
                  permissible under the Maryland General Corporation Law, the
                  Securities Act of 1933 and the 1940 Act, as such statutes are
                  now or hereafter in force, and to such further extent,
                  consistent with the foregoing, as may be provided by action of
                  the Board of Directors or by contract.

                           SECTION 5. Other Rights. The indemnification provided
                  by this Article V shall not be deemed exclusive of any other
                  right, in respect of indemnification or otherwise, to which
                  those seeking such indemnification may be entitled under any
                  insurance or other agreement, vote of stockholders or
                  disinterested Directors or otherwise, both as to action by a
                  Director or officer of the Corporation in his official
                  capacity and as to action by such person in another capacity
                  while holding such office or position, and shall continue as
                  to a person who has ceased to be a Director or officer and
                  shall inure to the benefit of the heirs, executors and
                  administrators of such a person.

                           SECTION 6. Constituent, Resulting or Surviving
                  Corporations. For the purposes of this Article V, references
                  to the "Corporation" shall include all constituent
                  corporations absorbed in a consolidation or merger as well as
                  the resulting or surviving corporation so that any person who
                  is or was a Director, officer, employee or agent of a
                  constituent corporation or is or was serving at the request of
                  a constituent corporation as a Director, officer, employee or
                  agent of another corporation, partnership, joint venture,
                  trust or other enterprise shall stand in the same position
                  under this Article V with respect to the resulting or
                  surviving corporation as he would if he had served the
                  resulting or surviving corporation in the same capacity.

Item 26.          Business or Other Connections of Investment Adviser
- --------          ---------------------------------------------------

                  Scudder Kemper Investments, Inc. has stockholders and
                  employees who are denominated officers but do not as such have
                  corporation-wide responsibilities. Such persons are not
                  considered officers for the purpose of this Item 26.

<TABLE>
<CAPTION>
                           Business and Other Connections of Board
           Name            of Directors of Registrant's Adviser
           ----            ------------------------------------

<S>                        <C>
Stephen R. Beckwith        Treasurer and Chief Financial Officer, Scudder Kemper Investments, Inc.**
                           Vice President and Treasurer, Scudder Fund Accounting Corporation*
                           Director, Scudder Stevens & Clark Corporation**
                           Director and Chairman, Scudder Defined Contribution Services, Inc.**
                           Director and President, Scudder Capital Asset Corporation**
                           Director and President, Scudder Capital Stock Corporation**
                           Director and President, Scudder Capital Planning Corporation**
                           Director and President, SS&C Investment Corporation**
                           Director and President, SIS Investment Corporation**
                           Director and President, SRV Investment Corporation**

Lynn S. Birdsong           Director and Vice President, Scudder Kemper Investments, Inc.**
                           Director, Scudder, Stevens & Clark (Luxembourg) S.A.#

William H. Bolinder        Director, Scudder Kemper Investments, Inc.**
                           Member Group Executive Board, Zurich Financial Services, Inc. ##
                           Chairman, Zurich-American Insurance Company o

                                 Part C - Page 8
<PAGE>


Laurence W. Cheng          Director, Scudder Kemper Investments, Inc.**
                           Member, Corporate Executive Board, Zurich Insurance Company of Switzerland ##
                           Director, ZKI Holding Corporation xx

Gunther Gose               Director, Scudder Kemper Investments, Inc.**
                           CFO, Member Group Executive Board, Zurich Financial Services, Inc. ##
                           CEO/Branch Offices, Zurich Life Insurance Company ##

Rolf Huppi                 Director, Chairman of the Board, Scudder Kemper Investments, Inc.**
                           Member, Corporate Executive Board, Zurich Insurance Company of Switzerland##
                           Director, Chairman of the Board, Zurich Holding Company of America o
                           Director, ZKI Holding Corporation xx

Kathryn L. Quirk           Chief Legal Officer, Chief Compliance Officer and Secretary, Scudder Kemper
                                 Investments, Inc.**
                           Director, Senior Vice President & Assistant Clerk, Scudder Investor Services, Inc.*
                           Director, Vice President & Secretary, Scudder Fund Accounting Corporation*
                           Director, Vice President & Secretary, Scudder Realty Holdings Corporation*
                           Director & Assistant Clerk, Scudder Service Corporation*
                           Director, SFA, Inc.*
                           Vice President, Director & Assistant Secretary, Scudder Precious Metals, Inc.***
                           Director, Scudder, Stevens & Clark Japan, Inc.***
                           Director, Vice President and Secretary, Scudder, Stevens & Clark of Canada, Ltd.***
                           Director, Vice President and Secretary, Scudder Canada Investor Services Limited***
                           Director, Vice President and Secretary, Scudder Realty Advisers, Inc. x
                           Director and Secretary, Scudder, Stevens & Clark Corporation**
                           Director and Secretary, Scudder, Stevens & Clark Overseas Corporation oo
                           Director and Secretary, SFA, Inc.*
                           Director, Vice President and Secretary, Scudder Defined Contribution Services, Inc.**
                           Director, Vice President and Secretary, Scudder Capital Asset Corporation**
                           Director, Vice President and Secretary, Scudder Capital Stock Corporation**
                           Director, Vice President and Secretary, Scudder Capital Planning Corporation**
                           Director, Vice President and Secretary, SS&C Investment Corporation**
                           Director, Vice President and Secretary, SIS Investment Corporation**
                           Director, Vice President and Secretary, SRV Investment Corporation**
                           Director, Vice President and Secretary, Scudder Brokerage Services, Inc.*
                           Director, Korea Bond Fund Management Co., Ltd.+

Cornelia M. Small          Director and Vice President, Scudder Kemper Investments, Inc.**

Edmond D. Villani          Director, President and Chief Executive Officer, Scudder Kemper Investments, Inc.**
                           Director, Scudder, Stevens & Clark Japan, Inc.###
                           President and Director, Scudder, Stevens & Clark Overseas Corporation oo
                           President and Director, Scudder, Stevens & Clark Corporation**
                           Director, Scudder Realty Advisors, Inc.x
                           Director, IBJ Global Investment Management S.A. Luxembourg, Grand-Duchy of Luxembourg

         *        Two International Place, Boston, MA
         x        333 South Hope Street, Los Angeles, CA
         **       345 Park Avenue, New York, NY
         #        Societe Anonyme, 47, Boulevard Royal, L-2449 Luxembourg, R.C. Luxembourg B 34.564
         ***      Toronto, Ontario, Canada
         xxx      Grand Cayman, Cayman Islands, British West Indies
         oo       20-5, Ichibancho, Chiyoda-ku, Tokyo, Japan
         ###      1-7, Kojimachi, Chiyoda-ku, Tokyo, Japan

                                 Part C - Page 9
<PAGE>

         xx       222 S. Riverside, Chicago, IL
         o        Zurich Towers, 1400 American Ln., Schaumburg, IL
         +        P.O. Box 309, Upland House, S. Church St., Grand Cayman, British West Indies
         ##       Mythenquai-2, P.O. Box CH-8022, Zurich, Switzerland
</TABLE>

Item 27.          Principal Underwriters.
- --------          -----------------------

         (a)

         Scudder Investor Services, Inc. acts as principal underwriter of the
         Registrant's shares and also acts as principal underwriter for other
         funds managed by Scudder Kemper Investments, Inc.

         (b)

         The Underwriter has employees who are denominated officers of an
         operational area. Such persons do not have corporation-wide
         responsibilities and are not considered officers for the purpose of
         this Item 27.

<TABLE>
<CAPTION>
         (1)                               (2)                                     (3)

         Name and Principal                Position and Offices with               Positions and
         Business Address                  Scudder Investor Services, Inc.         Offices with Registrant
         ----------------                  -------------------------------         -----------------------

         <S>                               <C>                                     <C>
         William S. Baughman               Vice President                          None
         Two International Place
         Boston, MA 02110

         Lynn S. Birdsong                  Senior Vice President                   None
         345 Park Avenue
         New York, NY 10154

         Mary Elizabeth Beams              Vice President                          None
         Two International Place
         Boston, MA 02110

         Mark S. Casady                    Director, President and Assistant       None
         Two International Place           Treasurer
         Boston, MA  02110

         Linda Coughlin                    Director and Senior Vice President      None
         Two International Place
         Boston, MA  02110

         Richard W. Desmond                Vice President                          Assistant Secretary
         345 Park Avenue
         New York, NY  10154

         Paul J. Elmlinger                 Senior Vice President and Assistant     None
         345 Park Avenue                   Clerk
         New York, NY  10154

         Philip S. Fortuna                 Vice President                          None
         101 California Street
         San Francisco, CA 94111

                                Part C - Page 10
<PAGE>

         Name and Principal                Position and Offices with               Positions and
         Business Address                  Scudder Investor Services, Inc.         Offices with Registrant
         ----------------                  -------------------------------         -----------------------

         William F. Glavin                 Vice President                          None
         Two International Place
         Boston, MA 02110

         Margaret D. Hadzima               Assistant Treasurer                     None
         Two International Place
         Boston, MA  02110

         Thomas W. Joseph                  Director, Vice President, Treasurer     Vice President
         Two International Place           and Assistant Clerk
         Boston, MA 02110

         Thomas F. McDonough               Clerk                                   Vice President & Secretary
         Two International Place
         Boston, MA 02110

         James J. McGovern                 Chief Financial Officer                 None
         345 Park Avenue
         New York, NY  10154

         Lorie C. O'Malley                 Vice President                          None
         Two International Place
         Boston, MA 02110

         Daniel Pierce                     Director, Vice President                Chairman of the Board and
         Two International Place           and Assistant Treasurer                 Director
         Boston, MA 02110

         Kathryn L. Quirk                  Director, Senior Vice President, Chief  Director, Vice President &
         345 Park Avenue                   Legal Officer and Assistant Clerk       Assistant Secretary
         New York, NY  10154

         Robert A. Rudell                  Director and Vice President             None
         Two International Place
         Boston, MA 02110

         William M. Thomas                 Vice President                          None
         Two International Place
         Boston, MA 02110

         Benjamin Thorndike                Vice President                          None
         Two International Place
         Boston, MA 02110

                                Part C - Page 11
<PAGE>

         Name and Principal                Position and Offices with               Positions and
         Business Address                  Scudder Investor Services, Inc.         Offices with Registrant
         ----------------                  -------------------------------         -----------------------

         Sydney S. Tucker                  Vice President                          None
         Two International Place
         Boston, MA 02110

         Linda J. Wondrack                 Vice President and Chief Compliance     None
         Two International Place           Officer
         Boston, MA  02110

         David B. Watts                    Assistant Treasurer                     None
         Two International Place
         Boston, MA  02110
</TABLE>

<TABLE>
<CAPTION>
         (c)

                     (1)                     (2)                 (3)                 (4)                 (5)
                                       Net Underwriting    Compensation on
              Name of Principal         Discounts and        Redemptions          Brokerage
                 Underwriter             Commissions       and Repurchases       Commissions      Other Compensation
                 -----------             -----------       ---------------       -----------      ------------------

               <S>                           <C>                 <C>                 <C>                <C>
               Scudder Investor              None                None                None               None
                Services, Inc.
</TABLE>

Item 28.          Location of Accounts and Records.
- --------          ---------------------------------

                  Certain accounts, books and other documents required to be
                  maintained by Section 31(a) of the 1940 Act and the Rules
                  promulgated thereunder are maintained by Scudder Kemper
                  Investments, Inc., 345 Park Avenue, New York, New York 10154.
                  Records relating to the duties of the Registrant's custodian
                  are maintained by Brown Brothers Harriman & Co., 40 Water
                  Street, Boston, Massachusetts. Records relating to the duties
                  of the Registrant's transfer agent are maintained by Scudder
                  Service Corporation, Two International Place, Boston,
                  Massachusetts 02110-4103.

Item 29.          Management Services.
- --------          --------------------

                  Inapplicable.

Item 30.          Undertakings.
- --------          -------------

                  Inapplicable


                                Part C - Page 12
<PAGE>


                                   SIGNATURES
                                   ----------

         Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this amendment to its Registration
Statement pursuant to Rule 485(a) under the Securities Act of 1933 and has duly
caused this amendment to its Registration Statement to be signed on its behalf
by the undersigned, thereto duly authorized, in the City of Boston and the
Commonwealth of Massachusetts on December 23, 1998.

                                              SCUDDER INTERNATIONAL FUND, INC.



                                              By  /s/Thomas F. McDonough
                                                  ------------------------------
                                                  Thomas F. McDonough,
                                                  Vice President and Secretary


         Pursuant to the requirements of the Securities Act of 1933, this
amendment to its Registration Statement has been signed below by the following
persons in the capacities and on the dates indicated.

<TABLE>
<CAPTION>
SIGNATURE                                   TITLE                                        DATE
- ---------                                   -----                                        ----

<S>                                         <C>                                   <C>
/s/Paul Bancroft, III
- --------------------------------------
Paul Bancroft, III*                         Director                              December 23, 1998


/s/Sheryle J. Bolton
- --------------------------------------
Sheryle J. Bolton*                          Director                              December 23, 1998


/s/William T. Burgin
- --------------------------------------
William T. Burgin*                          Director                              December 23, 1998


/s/Thomas J. Devine
- --------------------------------------
Thomas J. Devine*                           Director                              December 23, 1998


/s/Keith R. Fox
- --------------------------------------
Keith R. Fox*                               Director                              December 23, 1998


/s/William H. Gleysteen, Jr.
- --------------------------------------
William H. Gleysteen, Jr.*                  Director                              December 23, 1998


/s/William H. Luers
- --------------------------------------
William H. Luers*                           Director                              December 23, 1998

<PAGE>

SIGNATURE                                   TITLE                                        DATE
- ---------                                   -----                                        ----

/s/Wilson Nolen
- --------------------------------------
Wilson Nolen*                               Director                              December 23, 1998


/s/Joan Spero
- --------------------------------------
Joan Spero*                                 Director                              December 23, 1998


/s/Daniel Pierce
- --------------------------------------
Daniel Pierce*                              Chairman of the Board and Director    December 23, 1998


/s/Kathryn L. Quirk
- --------------------------------------
Kathryn L. Quirk*                           Director, Vice President and          December 23, 1998
                                            Assistant Secretary


/s/John R. Hebble
- --------------------------------------
John R. Hebble                              Treasurer                             December 23, 1998


*By:     /s/Thomas F. McDonough
         ----------------------------------------------------
         Thomas F. McDonough,
         Attorney-in-Fact pursuant to a power of attorney
         contained in the signature page of Post-Effective
         Amendment Nos. 35, 47, 49, 54, 56, 58 and 67 to the
         Registration Statement, filed October 8, 1992,
         February 27, 1996, July 17, 1996, June 2, 1997,
         July 31, 1997, December 4, 1997 and December 1998,
         respectively.
</TABLE>

                                       2
<PAGE>


                                   SIGNATURES
                                   ----------

         Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this amendment to its Registration
Statement pursuant to Rule 485(a) under the Securities Act of 1933 and has duly
caused this amendment to its Registration Statement to be signed on its behalf
by the undersigned, thereto duly authorized, in the City of Boston and the
Commonwealth of Massachusetts on the 23rd day of December 1998.

                                                SCUDDER INTERNATIONAL FUND, INC.


                                           By   /s/Thomas F. McDonough
                                                --------------------------------
                                                Thomas F. McDonough,
                                                Secretary and Vice President


         Pursuant to the requirements of the Securities Act of 1933, this
amendment to its Registration Statement has been signed below by the following
persons in the capacities and on the dates indicated. By so signing, the
undersigned in her capacity as a director or officer, or both, as the case may
be of the Registrant, does hereby appoint Kathryn L. Quirk, Caroline Pearson,
Thomas F. McDonough and Sheldon A. Jones and each of them, severally, or if more
than one acts, a majority of them, her true and lawful attorney and agent to
execute in her name, place and stead (in such capacity) any and all amendments
to the Registration Statement and any post-effective amendments thereto and all
instruments necessary or desirable in connection therewith, to attest the seal
of the Registrant thereon and to file the same with the Securities and Exchange
Commission. Each of said attorneys and agents shall have power to act with or
without the other and have full power and authority to do and perform in the
name and on behalf of the undersigned, in any and all capacities, every act
whatsoever necessary or advisable to be done in the premises as fully and to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and approving the act of said attorneys and agents and each of them.


<TABLE>
<CAPTION>
SIGNATURE                                   TITLE                                        DATE
- ---------                                   -----                                        ----

<S>                                         <C>
/s/Joan Spero
- --------------------------------------
Joan Spero                                  Director                                     December 23, 1998
</TABLE>

<PAGE>

                                                               File No. 2-14400
                                                               File No. 811-642

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    EXHIBITS

                                       TO

                                    FORM N-1A


                         POST-EFFECTIVE AMENDMENT No. 67

                            TO REGISTRATION STATEMENT

                                      UNDER

                           THE SECURITIES ACT OF 1933

                                       AND

                                AMENDMENT NO. 47

                            TO REGISTRATION STATEMENT

                                      UNDER

                       THE INVESTMENT COMPANY ACT OF 1940


                        SCUDDER INTERNATIONAL FUND, INC.

<PAGE>

                        SCUDDER INTERNATIONAL FUND, INC.

                                  EXHIBIT INDEX

                                     Exhibit
                                 Exhibit (a)(12)
                                 Exhibit (d)(1)
                                 Exhibit (d)(2)
                                 Exhibit (d)(3)
                                 Exhibit (d)(4)
                                 Exhibit (d)(5)
                                 Exhibit (d)(6)
                                 Exhibit (d)(7)
                                 Exhibit (d)(8)
                                 Exhibit (e)(1)
                                 Exhibit (h)(14)
                                 Exhibit (h)(15)


                                                                 Exhibit (a)(12)

                        SCUDDER INSTITUTIONAL FUND, INC.

                              ARTICLES OF TRANSFER
                              --------------------

         These  ARTICLES  OF TRANSFER  are entered  into this 3rd day of April,
1998, by and between Scudder  Institutional  Fund, Inc., a Maryland  corporation
(hereinafter referred to as "Transferor"), and Scudder International Fund, Inc.,
a Maryland corporation (hereinafter referred to as "Transferee").

         THIS IS TO CERTIFY TO THE STATE  DEPARTMENT OF ASSESSMENTS AND TAXATION
OF MARYLAND THAT:

         FIRST:  Transferor  does  hereby  agree to sell,  assign  and  transfer
substantially  all of its property and assets to Transferee,  its successors and
assigns, as hereafter set forth.

         SECOND:  The name and state of  incorporation of each entity which is a
party to these Articles of Transfer are as follows:

         Transferor  is  Scudder   Institutional   Fund,   Inc.,  a  corporation
incorporated under the laws of the State of Maryland.

         Transferee  is  Scudder   International   Fund,   Inc.,  a  corporation
incorporated under the laws of the State of Maryland.

         THIRD: The name, post office address and principal place of business of
Transferee  is:  Scudder  International  Fund,  Inc.,  300 East Lombard  Street,
Baltimore, Maryland 21202.

         FOURTH:  The principal office of Transferor in the State of Maryland is
in Baltimore  City. The principal  office of Transferee in the State of Maryland
is in Baltimore  City.  Transferor does not own an interest in any real property
the title to which could be affected by the recording of an instrument among the
land records of any county in the State of Maryland.

         FIFTH:  The  nature  and  amount  of  the  consideration  to  be  paid,
transferred  or issued by  Transferee  for the property and assets of Transferor
shall be as follows:

         On the Closing Date (as hereinafter defined),  Transferee will issue to
Transferor  that number of shares of the Barrett  International  Shares class of
the  International  Fund series of  Transferee's  capital  stock  determined  by
dividing  the value of the net assets of  Transferor  as of the close of regular
trading on the New York Stock  Exchange  on the Closing  Date,  by the net asset
value of one share of the International  Shares class of the International  Fund
series of the  Transferee's  capital stock as of the close of regular trading on
the New York Stock  Exchange on the Closing Date,  all as further  determined in
accordance  with the terms and  conditions set forth in an Agreement and Plan of
Reorganization,  as amended,  dated as of  September  18,  1997,  by and between
Transferor and Transferee (the "Agreement").


<PAGE>

         SIXTH: In accordance with the terms and conditions of the Agreement, in
consideration  of the issuance of the shares of capital  stock of  Transferee as
described in Article FIFTH above,  Transferor does hereby bargain,  sell, grant,
convey,  transfer,  set over and assign to  Transferee  and its  successors  and
assigns,  all  of  the  property  and  assets  of  Transferor  described  in the
Agreement,  and Transferee and its successors and assigns do hereby assume those
debts and obligations of Transferor described in the Agreement.

         SEVENTH: These Articles of Transfer shall become effective at 4:01 p.m.
EST on April 3, 1998 (the "Closing Date").

         EIGHTH:  The terms and conditions of the transaction set forth in these
Articles of Transfer were advised,  authorized and approved by Transferor in the
manner  and by the vote  required  by its  Charter  and the laws of the State of
Maryland as follows: The Board of Directors of Transferor,  at a regular meeting
duly called and held,  duly  authorized and adopted a resolution  declaring that
the terms and  conditions  of the  proposed  transaction  described  herein were
advisable,  and  directed  that the  proposed  transaction  be  submitted to the
stockholders of Transferor for consideration  and approval.  The stockholders of
Transferor,  at a special  meeting  duly called and held,  duly  authorized  and
adopted a resolution approving the proposed transaction described herein.

         NINTH:  The terms and conditions of the  transaction set forth in these
Articles of Transfer were advised,  authorized and approved by Transferee in the
manner  and by the vote  required  by its  Charter  and the laws of the State of
Maryland as follows: The Board of Directors of Transferee,  at a regular meeting
duly called and held,  duly  authorized  and adopted a resolution  approving the
proposed transaction described herein.

         TENTH:   These   Articles  of  Transfer  may  be  executed  in  several
counterparts,  each of  which  shall be  deemed  an  original,  but all of which
together shall constitute one and the same instrument.



                                       2
<PAGE>

         IN WITNESS WHEREOF,  on this 3rd day of April,  1998, each party hereto
has caused  these  Articles of Transfer to be executed and  acknowledged  in its
name and on its behalf by its  President and attested to by its  Secretary;  and
each President  acknowledges  that these Articles of Transfer are the act of the
party on whose behalf such individual is executing the Articles of Transfer, and
each President further  acknowledges  that, as to all matters or facts set forth
herein which are required to be verified under oath,  such matters and facts are
true in all material respects to the best of his/her knowledge,  information and
belief, and that this statement is made under the penalties for perjury.

ATTEST:                                     SCUDDER INSTITUTIONAL FUND, INC.


/s/Thomas F. McDonough                      By: /s/Daniel Pierce          
- ----------------------                          -------------------- 
Thomas F. McDongouh, Secretary                  Daniel Pierce, President


ATTEST:                                     SCUDDER INTERNATIONAL FUND, INC.


/s/Thomas F. McDonough                      By: /s/Nicholas Bratt
- -------------------------------                ----------------------------
Thomas F. McDongouh,, Secretary                  Nicholas Bratt, President


                                       3

                                                                  Exhibit (d)(1)
                        Scudder International Fund, Inc.
                                 345 Park Avenue
                            New York, New York 10154

                                                               September 7, 1998


Scudder Kemper Investments, Inc.
345 Park Avenue
New York, New York  10154


                         Investment Management Agreement
                           Scudder International Fund

Ladies and Gentlemen:



         Scudder International Fund, Inc. (the "Corporation") has been
established as a Maryland corporation to engage in the business of an investment
company. Pursuant to the Corporation's Articles of Incorporation, as amended
from time-to-time (the "Articles"), the Board of Directors has divided the
Corporation's shares of capital stock, par value $.01 per share, (the "Shares")
into separate series, or funds, including Scudder International Fund (the
"Fund"). Series may be abolished and dissolved, and additional series
established, from time to time by action of the Directors.



         The Corporation, on behalf of the Fund, has selected you to act as the
sole investment manager of the Fund and to provide certain other services, as
more fully set forth below, and you have indicated that you are willing to act
as such investment manager and to perform such services under the terms and
conditions hereinafter set forth. Accordingly, the Corporation on behalf of the
Fund agrees with you as follows:



         1. Delivery of Documents. The Corporation engages in the business of
investing and reinvesting the assets of the Fund in the manner and in accordance
with the investment objectives, policies and restrictions specified in the
currently effective Prospectus (the "Prospectus") and Statement of Additional
Information (the "SAI") relating to the Fund included in the Corporation's
Registration Statement on Form N-1A, as amended from time to time, (the
"Registration Statement") filed by the Corporation under the Investment Company
Act of 1940, as amended, (the "1940 Act") and the Securities Act of 1933, as
amended. Copies of the documents referred to in the preceding sentence have been
furnished to you by the Corporation. The Corporation has also furnished you with
copies properly certified or authenticated of each of the following additional
documents related to the Corporation and the Fund:



(a)  The Articles dated June 23, 1975, as amended to date.



(b)  By-Laws of the Corporation as in effect on the date hereof (the "By-Laws").



(c)  Resolutions of the Directors of the Corporation and the shareholders of the
     Fund selecting you as investment manager and approving the form of this
     Agreement.

<PAGE>


         The Corporation will furnish you from time to time with copies,
properly certified or authenticated, of all amendments of or supplements, if
any, to the foregoing, including the Prospectus, the SAI and the Registration
Statement.


         2. Sublicense to Use the Scudder Trademarks. As exclusive licensee of
the rights to use and sublicense the use of the "Scudder," "Scudder Kemper
Investments, Inc." and "Scudder, Stevens & Clark, Inc." trademarks (together,
the "Scudder Marks"), you hereby grant the Corporation a nonexclusive right and
sublicense to use (i) the "Scudder" name and mark as part of the Corporation's
name (the "Fund Name"), and (ii) the Scudder Marks in connection with the
Corporation's investment products and services, in each case only for so long as
this Agreement, any other investment management agreement between you (or any
organization which shall have succeeded to your business as investment manager
("your Successor")) and the Corporation, or any extension, renewal or amendment
hereof or thereof remains in effect, and only for so long as you are a licensee
of the Scudder Marks, provided however, that you agree to use your best efforts
to maintain your license to use and sublicense the Scudder Marks. The
Corporation agrees that it shall have no right to sublicense or assign rights to
use the Scudder Marks, shall acquire no interest in the Scudder Marks other than
the rights granted herein, that all of the Corporation's uses of the Scudder
Marks shall inure to the benefit of Scudder Trust Company as owner and licensor
of the Scudder Marks (the "Trademark Owner"), and that the Corporation shall not
challenge the validity of the Scudder Marks or the Trademark Owner's ownership
thereof. The Corporation further agrees that all services and products it offers
in connection with the Scudder Marks shall meet commercially reasonable
standards of quality, as may be determined by you or the Trademark Owner from
time to time, provided that you acknowledge that the services and products the
Corporation rendered during the one-year period preceding the date of this
Agreement are acceptable. At your reasonable request, the Corporation shall
cooperate with you and the Trademark Owner and shall execute and deliver any and
all documents necessary to maintain and protect (including but not limited to in
connection with any trademark infringement action) the Scudder Marks and/or
enter the Corporation as a registered user thereof. At such time as this
Agreement or any other investment management agreement shall no longer be in
effect between you (or your Successor) and the Corporation, or you no longer are
a licensee of the Scudder Marks, the Corporation shall (to the extent that, and
as soon as, it lawfully can) cease to use the Fund Name or any other name
indicating that it is advised by, managed by or otherwise connected with you (or
your Successor) or the Trademark Owner. In no event shall the Corporation use
the Scudder Marks or any other name or mark confusingly similar thereto
(including, but not limited to, any name or mark that includes the name
"Scudder") if this Agreement or any other investment advisory agreement between
you (or your Successor) and the Fund is terminated.



         3. Portfolio Management Services. As manager of the assets of the Fund,
you shall provide continuing investment management of the assets of the Fund in
accordance with the investment objectives, policies and restrictions set forth
in the Prospectus and SAI; the applicable provisions of the 1940 Act and the
Internal Revenue Code of 1986, as amended, (the "Code") relating to regulated
investment companies and all rules and regulations thereunder; and all other
applicable federal and state laws and regulations of which you have knowledge;
subject always to policies and instructions adopted by the Corporation's Board
of Directors. In connection therewith, you shall use reasonable efforts to
manage the Fund so that it will qualify as a regulated investment company under
Subchapter M of the Code and regulations issued thereunder. The Fund shall have
the benefit of the investment analysis and research, the review of current
economic conditions and trends and the consideration of long-range investment
policy generally available to your investment advisory clients. In managing the
Fund in accordance with the requirements set forth in this section 3, you shall
be entitled to receive and act upon advice of counsel to the Corporation or
counsel to you. You shall also make available to the Corporation promptly upon
request all of the Fund's investment records and ledgers as are necessary to
assist the 


                                       2
<PAGE>

Corporation in complying with the requirements of the 1940 Act and other
applicable laws. To the extent required by law, you shall furnish to regulatory
authorities having the requisite authority any information or reports in
connection with the services provided pursuant to this Agreement which may be
requested in order to ascertain whether the operations of the Corporation are
being conducted in a manner consistent with applicable laws and regulations.



         You shall determine the securities, instruments, investments,
currencies, repurchase agreements, futures, options and other contracts relating
to investments to be purchased, sold or entered into by the Fund and place
orders with broker-dealers, foreign currency dealers, futures commission
merchants or others pursuant to your determinations and all in accordance with
Fund policies as expressed in the Registration Statement. You shall determine
what portion of the Fund's portfolio shall be invested in securities and other
assets and what portion, if any, should be held uninvested.



         You shall furnish to the Corporation's Board of Directors periodic
reports on the investment performance of the Fund and on the performance of your
obligations pursuant to this Agreement, and you shall supply such additional
reports and information as the Corporation's officers or Board of Directors
shall reasonably request.



         4. Administrative Services. In addition to the portfolio management
services specified above in section 3, you shall furnish at your expense for the
use of the Fund such office space and facilities in the United States as the
Fund may require for its reasonable needs, and you (or one or more of your
affiliates designated by you) shall render to the Corporation administrative
services on behalf of the Fund necessary for operating as an open-end investment
company and not provided by persons not parties to this Agreement including, but
not limited to, preparing reports to and meeting materials for the Corporation's
Board of Directors and reports and notices to Fund shareholders; supervising,
negotiating contractual arrangements with, to the extent appropriate, and
monitoring the performance of, accounting agents, custodians, depositories,
transfer agents and pricing agents, accountants, attorneys, printers,
underwriters, brokers and dealers, insurers and other persons in any capacity
deemed to be necessary or desirable to Fund operations; preparing and making
filings with the Securities and Exchange Commission (the "SEC") and other
regulatory and self-regulatory organizations, including, but not limited to,
preliminary and definitive proxy materials, post-effective amendments to the
Registration Statement, semi-annual reports on Form N-SAR and notices pursuant
to Rule 24f-2 under the 1940 Act; overseeing the tabulation of proxies by the
Fund's transfer agent; assisting in the preparation and filing of the Fund's
federal, state and local tax returns; preparing and filing the Fund's federal
excise tax return pursuant to Section 4982 of the Code; providing assistance
with investor and public relations matters; monitoring the valuation of
portfolio securities and the calculation of net asset value; monitoring the
registration of Shares of the Fund under applicable federal and state securities
laws; maintaining or causing to be maintained for the Fund all books, records
and reports and any other information required under the 1940 Act, to the extent
that such books, records and reports and other information are not maintained by
the Fund's custodian or other agents of the Fund; assisting in establishing the
accounting policies of the Fund; assisting in the resolution of accounting
issues that may arise with respect to the Fund's operations and consulting with
the Fund's independent accountants, legal counsel and the Fund's other agents as
necessary in connection therewith; establishing and monitoring the Fund's
operating expense budgets; reviewing the Fund's bills; processing the payment of
bills that have been approved by an authorized person; assisting the Fund in
determining the amount of dividends and distributions available to be paid by
the Fund to its shareholders, preparing and arranging for the printing of
dividend notices to shareholders, and providing the transfer and dividend paying
agent, the custodian, and the accounting agent with such information as is
required for such parties to effect the payment of dividends and distributions;
and otherwise assisting the Corporation as it may reasonably request in the
conduct of the 


                                       3
<PAGE>

Fund's business, subject to the direction and control of the Corporation's Board
of Directors. Nothing in this Agreement shall be deemed to shift to you or to
diminish the obligations of any agent of the Fund or any other person not a
party to this Agreement which is obligated to provide services to the Fund.



         5. Allocation of Charges and Expenses. Except as otherwise specifically
provided in this section 5, you shall pay the compensation and expenses of all
Directors, officers and executive employees of the Corporation (including the
Fund's share of payroll taxes) who are affiliated persons of you, and you shall
make available, without expense to the Fund, the services of such of your
directors, officers and employees as may duly be elected officers of the
Corporation, subject to their individual consent to serve and to any limitations
imposed by law. You shall provide at your expense the portfolio management
services described in section 3 hereof and the administrative services described
in section 4 hereof.



         You shall not be required to pay any expenses of the Fund other than
those specifically allocated to you in this section 5. In particular, but
without limiting the generality of the foregoing, you shall not be responsible,
except to the extent of the reasonable compensation of such of the Fund's
Directors and officers as are directors, officers or employees of you whose
services may be involved, for the following expenses of the Fund: organization
expenses of the Fund (including out-of-pocket expenses, but not including your
overhead or employee costs); fees payable to you and to any other Fund advisors
or consultants; legal expenses; auditing and accounting expenses; maintenance of
books and records which are required to be maintained by the Fund's custodian or
other agents of the Corporation; telephone, telex, facsimile, postage and other
communications expenses; taxes and governmental fees; fees, dues and expenses
incurred by the Fund in connection with membership in investment company trade
organizations; fees and expenses of the Fund's accounting agent, custodians,
subcustodians, transfer agents, dividend disbursing agents and registrars;
payment for portfolio pricing or valuation services to pricing agents,
accountants, bankers and other specialists, if any; expenses of preparing share
certificates and, except as provided below in this section 5, other expenses in
connection with the issuance, offering, distribution, sale, redemption or
repurchase of securities issued by the Fund; expenses relating to investor and
public relations; expenses and fees of registering or qualifying Shares of the
Fund for sale; interest charges, bond premiums and other insurance expense;
freight, insurance and other charges in connection with the shipment of the
Fund's portfolio securities; the compensation and all expenses (specifically
including travel expenses relating to Corporation business) of Directors,
officers and employees of the Corporation who are not affiliated persons of you;
brokerage commissions or other costs of acquiring or disposing of any portfolio
securities of the Fund; expenses of printing and distributing reports, notices
and dividends to shareholders; expenses of printing and mailing Prospectuses and
SAIs of the Fund and supplements thereto; costs of stationery; any litigation
expenses; indemnification of Directors and officers of the Corporation; costs of
shareholders' and other meetings; and travel expenses (or an appropriate portion
thereof) of Directors and officers of the Corporation who are directors,
officers or employees of you to the extent that such expenses relate to
attendance at meetings of the Board of Directors of the Corporation or any
committees thereof or advisors thereto held outside of Boston, Massachusetts or
New York, New York.



         You shall not be required to pay expenses of any activity which is
primarily intended to result in sales of Shares of the Fund if and to the extent
that (i) such expenses are required to be borne by a principal underwriter which
acts as the distributor of the Fund's Shares pursuant to an underwriting
agreement which provides that the underwriter shall assume some or all of such
expenses, or (ii) the Corporation on behalf of the Fund shall have adopted a
plan in conformity with Rule 12b-1 under the 1940 Act providing that the Fund
(or some other party) shall assume some or all of such expenses. You shall be
required to pay such of the foregoing sales expenses as are not required to be
paid by the 


                                       4
<PAGE>

principal underwriter pursuant to the underwriting agreement or are not
permitted to be paid by the Fund (or some other party) pursuant to such a plan.



         6. Management Fee. For all services to be rendered, payments to be made
and costs to be assumed by you as provided in sections 3, 4 and 5 hereof, the
Corporation on behalf of the Fund shall pay you in United States Dollars on the
last day of each month the unpaid balance of a fee equal to the excess of 1/12
of 0.90 of 1 percent of the average daily net assets as defined below of the
Fund for such month; provided that, for any calendar month during which the
average of such values exceeds $500 million, the fee payable for that month
based on the portion of the average of such values in excess of $500 million
shall be 1/12 of 0.85 of 1 percent of such portion; and provided that, for any
calendar month during which the average of such values exceeds $1 billion, the
fee payable for that month based on the portion of the average of such values in
excess of $1 billion shall be 1/12 of 0.80 of 1 percent of such portion;
provided that, for any calendar month during which the average of such values
exceeds $2 billion, the fee payable for that month based on the portion of the
average of such values in excess of $2 billion shall be 1/12 of 0.75 of 1
percent of such portion; and provided that, for any calendar month during which
the average of such values exceeds $3 billion, the fee payable for that month
based on the portion of the average of such values in excess of $3 billion shall
be 1/12 of 0.70 of 1 percent of such portion over any compensation waived by you
from time to time (as more fully described below). You shall be entitled to
receive during any month such interim payments of your fee hereunder as you
shall request, provided that no such payment shall exceed 75 percent of the
amount of your fee then accrued on the books of the Fund and unpaid.



         The "average daily net assets" of the Fund shall mean the average of
the values placed on the Fund's net assets as of 4:00 p.m. (New York time) on
each day on which the net asset value of the Fund is determined consistent with
the provisions of Rule 22c-1 under the 1940 Act or, if the Fund lawfully
determines the value of its net assets as of some other time on each business
day, as of such time. The value of the net assets of the Fund shall always be
determined pursuant to the applicable provisions of the Articles and the
Registration Statement. If the determination of net asset value does not take
place for any particular day, then for the purposes of this section 6, the value
of the net assets of the Fund as last determined shall be deemed to be the value
of its net assets as of 4:00 p.m. (New York time), or as of such other time as
the value of the net assets of the Fund's portfolio may be lawfully determined
on that day. If the Fund determines the value of the net assets of its portfolio
more than once on any day, then the last such determination thereof on that day
shall be deemed to be the sole determination thereof on that day for the
purposes of this section 6.



         You may waive all or a portion of your fees provided for hereunder and
such waiver shall be treated as a reduction in purchase price of your services.
You shall be contractually bound hereunder by the terms of any publicly
announced waiver of your fee, or any limitation of the Fund's expenses, as if
such waiver or limitation were fully set forth herein.



         7. Avoidance of Inconsistent Position; Services Not Exclusive. In
connection with purchases or sales of portfolio securities and other investments
for the account of the Fund, neither you nor any of your directors, officers or
employees shall act as a principal or agent or receive any commission. You or
your agent shall arrange for the placing of all orders for the purchase and sale
of portfolio securities and other investments for the Fund's account with
brokers or dealers selected by you in accordance with Fund policies as expressed
in the Registration Statement. If any occasion should arise in which you give
any advice to clients of yours concerning the Shares of the Fund, you shall act
solely as investment counsel for such clients and not in any way on behalf of
the Fund.


                                       5
<PAGE>


         Your services to the Fund pursuant to this Agreement are not to be
deemed to be exclusive and it is understood that you may render investment
advice, management and services to others. In acting under this Agreement, you
shall be an independent contractor and not an agent of the Corporation. Whenever
the Fund and one or more other accounts or investment companies advised by the
Manager have available funds for investment, investments suitable and
appropriate for each shall be allocated in accordance with procedures believed
by the Manager to be equitable to each entity. Similarly, opportunities to sell
securities shall be allocated in a manner believed by the Manager to be
equitable. The Fund recognizes that in some cases this procedure may adversely
affect the size of the position that may be acquired or disposed of for the
Fund.



         8. Limitation of Liability of Manager. As an inducement to your
undertaking to render services pursuant to this Agreement, the Corporation
agrees that you shall not be liable under this Agreement for any error of
judgment or mistake of law or for any loss suffered by the Fund in connection
with the matters to which this Agreement relates, provided that nothing in this
Agreement shall be deemed to protect or purport to protect you against any
liability to the Corporation, the Fund or its shareholders to which you would
otherwise be subject by reason of willful misfeasance, bad faith or gross
negligence in the performance of your duties, or by reason of your reckless
disregard of your obligations and duties hereunder. Any person, even though also
employed by you, who may be or become an employee of and paid by the Fund shall
be deemed, when acting within the scope of his or her employment by the Fund, to
be acting in such employment solely for the Fund and not as your employee or
agent.



         9. Duration and Termination of This Agreement. This Agreement shall
remain in force until September 30, 1999, and continue in force from year to
year thereafter, but only so long as such continuance is specifically approved
at least annually (a) by the vote of a majority of the Directors who are not
parties to this Agreement or interested persons of any party to this Agreement,
cast in person at a meeting called for the purpose of voting on such approval,
and (b) by the Directors of the Corporation, or by the vote of a majority of the
outstanding voting securities of the Fund. The aforesaid requirement that
continuance of this Agreement be "specifically approved at least annually" shall
be construed in a manner consistent with the 1940 Act and the rules and
regulations thereunder and any applicable SEC exemptive order therefrom.



         This Agreement may be terminated with respect to the Fund at any time,
without the payment of any penalty, by the vote of a majority of the outstanding
voting securities of the Fund or by the Corporation's Board of Directors on 60
days' written notice to you, or by you on 60 days' written notice to the
Corporation. This Agreement shall terminate automatically in the event of its
assignment.



         10. Amendment of this Agreement. No provision of this Agreement may be
changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party against whom enforcement of the change, waiver,
discharge or termination is sought, and no amendment of this Agreement shall be
effective until approved in a manner consistent with the 1940 Act and rules and
regulations thereunder and any applicable SEC exemptive order therefrom.



         11. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or limit any of the
provisions hereof or otherwise affect their construction or 


                                       6
<PAGE>

effect. This Agreement may be executed simultaneously in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.



         In interpreting the provisions of this Agreement, the definitions
contained in Section 2(a) of the 1940 Act (particularly the definitions of
"affiliated person," "assignment" and "majority of the outstanding voting
securities"), as from time to time amended, shall be applied, subject, however,
to such exemptions as may be granted by the SEC by any rule, regulation or
order.



         This Agreement shall be construed in accordance with the laws of the
State of Maryland, provided that nothing herein shall be construed in a manner
inconsistent with the 1940 Act, or in a manner which would cause the Fund to
fail to comply with the requirements of Subchapter M of the Code.



         This Agreement shall supersede all prior investment advisory or
management agreements entered into between you and the Corporation on behalf of
the Fund.



         If you are in agreement with the foregoing, please execute the form of
acceptance on the accompanying counterpart of this letter and return such
counterpart to the Corporation, whereupon this letter shall become a binding
contract effective as of the date of this Agreement.



                                            Yours very truly,

                                            SCUDDER INTERNATIONAL FUND, INC.,

                                            on behalf of

                                            Scudder International Fund




                                            By:  /s/Thomas F. McDonough
                                                 ---------------------------
                                                    Vice President


         The foregoing Agreement is hereby accepted as of the date hereof.

                                            SCUDDER KEMPER INVESTMENTS, INC.




                                            By:  /s/Daniel Pierce
                                                 ---------------------------

                                                      Managing Director

                                       7

                                                                  Exhibit (d)(2)

                        Scudder International Fund, Inc.
                                 345 Park Avenue
                            New York, New York 10154

                                                               September 7, 1998


Scudder Kemper Investments, Inc.
345 Park Avenue
New York, New York  10154


                         Investment Management Agreement
                           Scudder Latin America Fund

Ladies and Gentlemen:



         Scudder International Fund, Inc. (the "Corporation") has been
established as a Maryland corporation to engage in the business of an investment
company. Pursuant to the Corporation's Articles of Incorporation, as amended
from time-to-time (the "Articles"), the Board of Directors has divided the
Corporation's shares of capital stock, par value $.01 per share, (the "Shares")
into separate series, or funds, including Scudder Latin America Fund (the
"Fund"). Series may be abolished and dissolved, and additional series
established, from time to time by action of the Directors.



         The Corporation, on behalf of the Fund, has selected you to act as the
sole investment manager of the Fund and to provide certain other services, as
more fully set forth below, and you have indicated that you are willing to act
as such investment manager and to perform such services under the terms and
conditions hereinafter set forth. Accordingly, the Corporation on behalf of the
Fund agrees with you as follows:



         1. Delivery of Documents. The Corporation engages in the business of
investing and reinvesting the assets of the Fund in the manner and in accordance
with the investment objectives, policies and restrictions specified in the
currently effective Prospectus (the "Prospectus") and Statement of Additional
Information (the "SAI") relating to the Fund included in the Corporation's
Registration Statement on Form N-1A, as amended from time to time, (the
"Registration Statement") filed by the Corporation under the Investment Company
Act of 1940, as amended, (the "1940 Act") and the Securities Act of 1933, as
amended. Copies of the documents referred to in the preceding sentence have been
furnished to you by the Corporation. The Corporation has also furnished you with
copies properly certified or authenticated of each of the following additional
documents related to the Corporation and the Fund:



(a)      The Articles dated June 23, 1975, as amended to date.



(b)      By-Laws of the Corporation as in effect on the date hereof (the
         "By-Laws").



(c)      Resolutions of the Directors of the Corporation and the shareholders of
         the Fund selecting you as investment manager and approving the form of
         this Agreement.

<PAGE>


         The Corporation will furnish you from time to time with copies,
properly certified or authenticated, of all amendments of or supplements, if
any, to the foregoing, including the Prospectus, the SAI and the Registration
Statement.


         2. Sublicense to Use the Scudder Trademarks. As exclusive licensee of
the rights to use and sublicense the use of the "Scudder," "Scudder Kemper
Investments, Inc." and "Scudder, Stevens & Clark, Inc." trademarks (together,
the "Scudder Marks"), you hereby grant the Corporation a nonexclusive right and
sublicense to use (i) the "Scudder" name and mark as part of the Corporation's
name (the "Fund Name"), and (ii) the Scudder Marks in connection with the
Corporation's investment products and services, in each case only for so long as
this Agreement, any other investment management agreement between you (or any
organization which shall have succeeded to your business as investment manager
("your Successor")) and the Corporation, or any extension, renewal or amendment
hereof or thereof remains in effect, and only for so long as you are a licensee
of the Scudder Marks, provided however, that you agree to use your best efforts
to maintain your license to use and sublicense the Scudder Marks. The
Corporation agrees that it shall have no right to sublicense or assign rights to
use the Scudder Marks, shall acquire no interest in the Scudder Marks other than
the rights granted herein, that all of the Corporation's uses of the Scudder
Marks shall inure to the benefit of Scudder Trust Company as owner and licensor
of the Scudder Marks (the "Trademark Owner"), and that the Corporation shall not
challenge the validity of the Scudder Marks or the Trademark Owner's ownership
thereof. The Corporation further agrees that all services and products it offers
in connection with the Scudder Marks shall meet commercially reasonable
standards of quality, as may be determined by you or the Trademark Owner from
time to time, provided that you acknowledge that the services and products the
Corporation rendered during the one-year period preceding the date of this
Agreement are acceptable. At your reasonable request, the Corporation shall
cooperate with you and the Trademark Owner and shall execute and deliver any and
all documents necessary to maintain and protect (including but not limited to in
connection with any trademark infringement action) the Scudder Marks and/or
enter the Corporation as a registered user thereof. At such time as this
Agreement or any other investment management agreement shall no longer be in
effect between you (or your Successor) and the Corporation, or you no longer are
a licensee of the Scudder Marks, the Corporation shall (to the extent that, and
as soon as, it lawfully can) cease to use the Fund Name or any other name
indicating that it is advised by, managed by or otherwise connected with you (or
your Successor) or the Trademark Owner. In no event shall the Corporation use
the Scudder Marks or any other name or mark confusingly similar thereto
(including, but not limited to, any name or mark that includes the name
"Scudder") if this Agreement or any other investment advisory agreement between
you (or your Successor) and the Fund is terminated.



         3. Portfolio Management Services. As manager of the assets of the Fund,
you shall provide continuing investment management of the assets of the Fund in
accordance with the investment objectives, policies and restrictions set forth
in the Prospectus and SAI; the applicable provisions of the 1940 Act and the
Internal Revenue Code of 1986, as amended, (the "Code") relating to regulated
investment companies and all rules and regulations thereunder; and all other
applicable federal and state laws and regulations of which you have knowledge;
subject always to policies and instructions adopted by the Corporation's Board
of Directors. In connection therewith, you shall use reasonable efforts to
manage the Fund so that it will qualify as a regulated investment company under
Subchapter M of the Code and regulations issued thereunder. The Fund shall have
the benefit of the investment analysis and research, the review of current
economic conditions and trends and the consideration of long-range investment
policy generally available to your investment advisory clients. In managing the
Fund in accordance with the requirements set forth in this section 3, you shall
be entitled to receive and act upon advice of counsel to the Corporation or
counsel to you. You shall also make available to the Corporation promptly upon
request all of the Fund's investment records and ledgers as are necessary to
assist the 


                                       2
<PAGE>

Corporation in complying with the requirements of the 1940 Act and other
applicable laws. To the extent required by law, you shall furnish to regulatory
authorities having the requisite authority any information or reports in
connection with the services provided pursuant to this Agreement which may be
requested in order to ascertain whether the operations of the Corporation are
being conducted in a manner consistent with applicable laws and regulations.



         You shall determine the securities, instruments, investments,
currencies, repurchase agreements, futures, options and other contracts relating
to investments to be purchased, sold or entered into by the Fund and place
orders with broker-dealers, foreign currency dealers, futures commission
merchants or others pursuant to your determinations and all in accordance with
Fund policies as expressed in the Registration Statement. You shall determine
what portion of the Fund's portfolio shall be invested in securities and other
assets and what portion, if any, should be held uninvested.



         You shall furnish to the Corporation's Board of Directors periodic
reports on the investment performance of the Fund and on the performance of your
obligations pursuant to this Agreement, and you shall supply such additional
reports and information as the Corporation's officers or Board of Directors
shall reasonably request.



         4. Administrative Services. In addition to the portfolio management
services specified above in section 3, you shall furnish at your expense for the
use of the Fund such office space and facilities in the United States as the
Fund may require for its reasonable needs, and you (or one or more of your
affiliates designated by you) shall render to the Corporation administrative
services on behalf of the Fund necessary for operating as an open-end investment
company and not provided by persons not parties to this Agreement including, but
not limited to, preparing reports to and meeting materials for the Corporation's
Board of Directors and reports and notices to Fund shareholders; supervising,
negotiating contractual arrangements with, to the extent appropriate, and
monitoring the performance of, accounting agents, custodians, depositories,
transfer agents and pricing agents, accountants, attorneys, printers,
underwriters, brokers and dealers, insurers and other persons in any capacity
deemed to be necessary or desirable to Fund operations; preparing and making
filings with the Securities and Exchange Commission (the "SEC") and other
regulatory and self-regulatory organizations, including, but not limited to,
preliminary and definitive proxy materials, post-effective amendments to the
Registration Statement, semi-annual reports on Form N-SAR and notices pursuant
to Rule 24f-2 under the 1940 Act; overseeing the tabulation of proxies by the
Fund's transfer agent; assisting in the preparation and filing of the Fund's
federal, state and local tax returns; preparing and filing the Fund's federal
excise tax return pursuant to Section 4982 of the Code; providing assistance
with investor and public relations matters; monitoring the valuation of
portfolio securities and the calculation of net asset value; monitoring the
registration of Shares of the Fund under applicable federal and state securities
laws; maintaining or causing to be maintained for the Fund all books, records
and reports and any other information required under the 1940 Act, to the extent
that such books, records and reports and other information are not maintained by
the Fund's custodian or other agents of the Fund; assisting in establishing the
accounting policies of the Fund; assisting in the resolution of accounting
issues that may arise with respect to the Fund's operations and consulting with
the Fund's independent accountants, legal counsel and the Fund's other agents as
necessary in connection therewith; establishing and monitoring the Fund's
operating expense budgets; reviewing the Fund's bills; processing the payment of
bills that have been approved by an authorized person; assisting the Fund in
determining the amount of dividends and distributions available to be paid by
the Fund to its shareholders, preparing and arranging for the printing of
dividend notices to shareholders, and providing the transfer and dividend paying
agent, the custodian, and the accounting agent with such information as is
required for such parties to effect the payment of dividends and distributions;
and otherwise assisting the Corporation as it may reasonably request in the
conduct of the 


                                       3
<PAGE>

Fund's business, subject to the direction and control of the Corporation's Board
of Directors. Nothing in this Agreement shall be deemed to shift to you or to
diminish the obligations of any agent of the Fund or any other person not a
party to this Agreement which is obligated to provide services to the Fund.



         5. Allocation of Charges and Expenses. Except as otherwise specifically
provided in this section 5, you shall pay the compensation and expenses of all
Directors, officers and executive employees of the Corporation (including the
Fund's share of payroll taxes) who are affiliated persons of you, and you shall
make available, without expense to the Fund, the services of such of your
directors, officers and employees as may duly be elected officers of the
Corporation, subject to their individual consent to serve and to any limitations
imposed by law. You shall provide at your expense the portfolio management
services described in section 3 hereof and the administrative services described
in section 4 hereof.



         You shall not be required to pay any expenses of the Fund other than
those specifically allocated to you in this section 5. In particular, but
without limiting the generality of the foregoing, you shall not be responsible,
except to the extent of the reasonable compensation of such of the Fund's
Directors and officers as are directors, officers or employees of you whose
services may be involved, for the following expenses of the Fund: organization
expenses of the Fund (including out-of-pocket expenses, but not including your
overhead or employee costs); fees payable to you and to any other Fund advisors
or consultants; legal expenses; auditing and accounting expenses; maintenance of
books and records which are required to be maintained by the Fund's custodian or
other agents of the Corporation; telephone, telex, facsimile, postage and other
communications expenses; taxes and governmental fees; fees, dues and expenses
incurred by the Fund in connection with membership in investment company trade
organizations; fees and expenses of the Fund's accounting agent, custodians,
subcustodians, transfer agents, dividend disbursing agents and registrars;
payment for portfolio pricing or valuation services to pricing agents,
accountants, bankers and other specialists, if any; expenses of preparing share
certificates and, except as provided below in this section 5, other expenses in
connection with the issuance, offering, distribution, sale, redemption or
repurchase of securities issued by the Fund; expenses relating to investor and
public relations; expenses and fees of registering or qualifying Shares of the
Fund for sale; interest charges, bond premiums and other insurance expense;
freight, insurance and other charges in connection with the shipment of the
Fund's portfolio securities; the compensation and all expenses (specifically
including travel expenses relating to Corporation business) of Directors,
officers and employees of the Corporation who are not affiliated persons of you;
brokerage commissions or other costs of acquiring or disposing of any portfolio
securities of the Fund; expenses of printing and distributing reports, notices
and dividends to shareholders; expenses of printing and mailing Prospectuses and
SAIs of the Fund and supplements thereto; costs of stationery; any litigation
expenses; indemnification of Directors and officers of the Corporation; costs of
shareholders' and other meetings; and travel expenses (or an appropriate portion
thereof) of Directors and officers of the Corporation who are directors,
officers or employees of you to the extent that such expenses relate to
attendance at meetings of the Board of Directors of the Corporation or any
committees thereof or advisors thereto held outside of Boston, Massachusetts or
New York, New York.



         You shall not be required to pay expenses of any activity which is
primarily intended to result in sales of Shares of the Fund if and to the extent
that (i) such expenses are required to be borne by a principal underwriter which
acts as the distributor of the Fund's Shares pursuant to an underwriting
agreement which provides that the underwriter shall assume some or all of such
expenses, or (ii) the Corporation on behalf of the Fund shall have adopted a
plan in conformity with Rule 12b-1 under the 1940 Act providing that the Fund
(or some other party) shall assume some or all of such expenses. You shall be
required to pay such of the foregoing sales expenses as are not required to be
paid by the 


                                       4
<PAGE>

principal underwriter pursuant to the underwriting agreement or are not
permitted to be paid by the Fund (or some other party) pursuant to such a plan.



         6. Management Fee. For all services to be rendered, payments to be made
and costs to be assumed by you as provided in sections 3, 4 and 5 hereof, the
Corporation on behalf of the Fund shall pay you in United States Dollars on the
last day of each month the unpaid balance of a fee equal to the excess of 1/12
of 1.25 percent of the average daily net assets as defined below of the Fund for
such month; provided that, for any calendar month during which the average of
such values exceeds $1 billion, the fee payable for that month based on the
portion of the average of such values in excess of $1 billion shall be 1.15
percent of such portion over any compensation waived by you from time to time
(as more fully described below). You shall be entitled to receive during any
month such interim payments of your fee hereunder as you shall request, provided
that no such payment shall exceed 75 percent of the amount of your fee then
accrued on the books of the Fund and unpaid.



         The "average daily net assets" of the Fund shall mean the average of
the values placed on the Fund's net assets as of 4:00 p.m. (New York time) on
each day on which the net asset value of the Fund is determined consistent with
the provisions of Rule 22c-1 under the 1940 Act or, if the Fund lawfully
determines the value of its net assets as of some other time on each business
day, as of such time. The value of the net assets of the Fund shall always be
determined pursuant to the applicable provisions of the Articles and the
Registration Statement. If the determination of net asset value does not take
place for any particular day, then for the purposes of this section 6, the value
of the net assets of the Fund as last determined shall be deemed to be the value
of its net assets as of 4:00 p.m. (New York time), or as of such other time as
the value of the net assets of the Fund's portfolio may be lawfully determined
on that day. If the Fund determines the value of the net assets of its portfolio
more than once on any day, then the last such determination thereof on that day
shall be deemed to be the sole determination thereof on that day for the
purposes of this section 6.



         You may waive all or a portion of your fees provided for hereunder and
such waiver shall be treated as a reduction in purchase price of your services.
You shall be contractually bound hereunder by the terms of any publicly
announced waiver of your fee, or any limitation of the Fund's expenses, as if
such waiver or limitation were fully set forth herein.



         7. Avoidance of Inconsistent Position; Services Not Exclusive. In
connection with purchases or sales of portfolio securities and other investments
for the account of the Fund, neither you nor any of your directors, officers or
employees shall act as a principal or agent or receive any commission. You or
your agent shall arrange for the placing of all orders for the purchase and sale
of portfolio securities and other investments for the Fund's account with
brokers or dealers selected by you in accordance with Fund policies as expressed
in the Registration Statement. If any occasion should arise in which you give
any advice to clients of yours concerning the Shares of the Fund, you shall act
solely as investment counsel for such clients and not in any way on behalf of
the Fund.



         Your services to the Fund pursuant to this Agreement are not to be
deemed to be exclusive and it is understood that you may render investment
advice, management and services to others. In acting under this Agreement, you
shall be an independent contractor and not an agent of the Corporation. Whenever
the Fund and one or more other accounts or investment companies advised by the
Manager have available funds for investment, investments suitable and
appropriate for each shall be allocated in accordance with procedures believed
by the Manager to be equitable to each entity. Similarly, 


                                       5
<PAGE>

opportunities to sell securities shall be allocated in a manner believed by the
Manager to be equitable. The Fund recognizes that in some cases this procedure
may adversely affect the size of the position that may be acquired or disposed
of for the Fund.



         8. Limitation of Liability of Manager. As an inducement to your
undertaking to render services pursuant to this Agreement, the Corporation
agrees that you shall not be liable under this Agreement for any error of
judgment or mistake of law or for any loss suffered by the Fund in connection
with the matters to which this Agreement relates, provided that nothing in this
Agreement shall be deemed to protect or purport to protect you against any
liability to the Corporation, the Fund or its shareholders to which you would
otherwise be subject by reason of willful misfeasance, bad faith or gross
negligence in the performance of your duties, or by reason of your reckless
disregard of your obligations and duties hereunder. Any person, even though also
employed by you, who may be or become an employee of and paid by the Fund shall
be deemed, when acting within the scope of his or her employment by the Fund, to
be acting in such employment solely for the Fund and not as your employee or
agent.



         9. Duration and Termination of This Agreement. This Agreement shall
remain in force until September 30, 1999, and continue in force from year to
year thereafter, but only so long as such continuance is specifically approved
at least annually (a) by the vote of a majority of the Directors who are not
parties to this Agreement or interested persons of any party to this Agreement,
cast in person at a meeting called for the purpose of voting on such approval,
and (b) by the Directors of the Corporation, or by the vote of a majority of the
outstanding voting securities of the Fund. The aforesaid requirement that
continuance of this Agreement be "specifically approved at least annually" shall
be construed in a manner consistent with the 1940 Act and the rules and
regulations thereunder and any applicable SEC exemptive order therefrom.



         This Agreement may be terminated with respect to the Fund at any time,
without the payment of any penalty, by the vote of a majority of the outstanding
voting securities of the Fund or by the Corporation's Board of Directors on 60
days' written notice to you, or by you on 60 days' written notice to the
Corporation. This Agreement shall terminate automatically in the event of its
assignment.



         10. Amendment of this Agreement. No provision of this Agreement may be
changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party against whom enforcement of the change, waiver,
discharge or termination is sought, and no amendment of this Agreement shall be
effective until approved in a manner consistent with the 1940 Act and rules and
regulations thereunder and any applicable SEC exemptive order therefrom.



         11. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or limit any of the
provisions hereof or otherwise affect their construction or effect. This
Agreement may be executed simultaneously in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.



         In interpreting the provisions of this Agreement, the definitions
contained in Section 2(a) of the 1940 Act (particularly the definitions of
"affiliated person," "assignment" and "majority of the outstanding voting
securities"), as from time to time amended, shall be applied, subject, however,
to such exemptions as may be granted by the SEC by any rule, regulation or
order.


                                       6
<PAGE>


         This Agreement shall be construed in accordance with the laws of the
State of Maryland, provided that nothing herein shall be construed in a manner
inconsistent with the 1940 Act, or in a manner which would cause the Fund to
fail to comply with the requirements of Subchapter M of the Code.



         This Agreement shall supersede all prior investment advisory or
management agreements entered into between you and the Corporation on behalf of
the Fund.



         If you are in agreement with the foregoing, please execute the form of
acceptance on the accompanying counterpart of this letter and return such
counterpart to the Corporation, whereupon this letter shall become a binding
contract effective as of the date of this Agreement.



                                        Yours very truly,

                                        SCUDDER INTERNATIONAL FUND, INC.,

                                        on behalf of

                                        Scudder Latin America Fund




                                        By: /s/Thomas F. McDonough
                                            --------------------------
                                                Vice President


         The foregoing Agreement is hereby accepted as of the date hereof.

                                        SCUDDER KEMPER INVESTMENTS, INC.




                                        By: /s/Daniel Pierce
                                            --------------------

                                                  Managing Director


                                       7

                                                                  Exhibit (d)(3)
                        Scudder International Fund, Inc.
                                 345 Park Avenue
                            New York, New York 10154

                                                               September 7, 1998


Scudder Kemper Investments, Inc.
345 Park Avenue
New York, New York  10154


                         Investment Management Agreement
                       Scudder Pacific Opportunities Fund

Ladies and Gentlemen:



         Scudder International Fund, Inc. (the "Corporation") has been
established as a Maryland corporation to engage in the business of an investment
company. Pursuant to the Corporation's Articles of Incorporation, as amended
from time-to-time (the "Articles"), the Board of Directors has divided the
Corporation's shares of capital stock, par value $.01 per share, (the "Shares")
into separate series, or funds, including Scudder Pacific Opportunities Fund
(the "Fund"). Series may be abolished and dissolved, and additional series
established, from time to time by action of the Directors.



         The Corporation, on behalf of the Fund, has selected you to act as the
sole investment manager of the Fund and to provide certain other services, as
more fully set forth below, and you have indicated that you are willing to act
as such investment manager and to perform such services under the terms and
conditions hereinafter set forth. Accordingly, the Corporation on behalf of the
Fund agrees with you as follows:



         1. Delivery of Documents. The Corporation engages in the business of
investing and reinvesting the assets of the Fund in the manner and in accordance
with the investment objectives, policies and restrictions specified in the
currently effective Prospectus (the "Prospectus") and Statement of Additional
Information (the "SAI") relating to the Fund included in the Corporation's
Registration Statement on Form N-1A, as amended from time to time, (the
"Registration Statement") filed by the Corporation under the Investment Company
Act of 1940, as amended, (the "1940 Act") and the Securities Act of 1933, as
amended. Copies of the documents referred to in the preceding sentence have been
furnished to you by the Corporation. The Corporation has also furnished you with
copies properly certified or authenticated of each of the following additional
documents related to the Corporation and the Fund:



(a)      The Articles dated June 23, 1975, as amended to date.



(b)      By-Laws of the Corporation as in effect on the date hereof (the
         "By-Laws").



(c)      Resolutions of the Directors of the Corporation and the shareholders of
         the Fund selecting you as investment manager and approving the form of
         this Agreement.

<PAGE>


         The Corporation will furnish you from time to time with copies,
properly certified or authenticated, of all amendments of or supplements, if
any, to the foregoing, including the Prospectus, the SAI and the Registration
Statement.


         2. Sublicense to Use the Scudder Trademarks. As exclusive licensee of
the rights to use and sublicense the use of the "Scudder," "Scudder Kemper
Investments, Inc." and "Scudder, Stevens & Clark, Inc." trademarks (together,
the "Scudder Marks"), you hereby grant the Corporation a nonexclusive right and
sublicense to use (i) the "Scudder" name and mark as part of the Corporation's
name (the "Fund Name"), and (ii) the Scudder Marks in connection with the
Corporation's investment products and services, in each case only for so long as
this Agreement, any other investment management agreement between you (or any
organization which shall have succeeded to your business as investment manager
("your Successor")) and the Corporation, or any extension, renewal or amendment
hereof or thereof remains in effect, and only for so long as you are a licensee
of the Scudder Marks, provided however, that you agree to use your best efforts
to maintain your license to use and sublicense the Scudder Marks. The
Corporation agrees that it shall have no right to sublicense or assign rights to
use the Scudder Marks, shall acquire no interest in the Scudder Marks other than
the rights granted herein, that all of the Corporation's uses of the Scudder
Marks shall inure to the benefit of Scudder Trust Company as owner and licensor
of the Scudder Marks (the "Trademark Owner"), and that the Corporation shall not
challenge the validity of the Scudder Marks or the Trademark Owner's ownership
thereof. The Corporation further agrees that all services and products it offers
in connection with the Scudder Marks shall meet commercially reasonable
standards of quality, as may be determined by you or the Trademark Owner from
time to time, provided that you acknowledge that the services and products the
Corporation rendered during the one-year period preceding the date of this
Agreement are acceptable. At your reasonable request, the Corporation shall
cooperate with you and the Trademark Owner and shall execute and deliver any and
all documents necessary to maintain and protect (including but not limited to in
connection with any trademark infringement action) the Scudder Marks and/or
enter the Corporation as a registered user thereof. At such time as this
Agreement or any other investment management agreement shall no longer be in
effect between you (or your Successor) and the Corporation, or you no longer are
a licensee of the Scudder Marks, the Corporation shall (to the extent that, and
as soon as, it lawfully can) cease to use the Fund Name or any other name
indicating that it is advised by, managed by or otherwise connected with you (or
your Successor) or the Trademark Owner. In no event shall the Corporation use
the Scudder Marks or any other name or mark confusingly similar thereto
(including, but not limited to, any name or mark that includes the name
"Scudder") if this Agreement or any other investment advisory agreement between
you (or your Successor) and the Fund is terminated.



         3. Portfolio Management Services. As manager of the assets of the Fund,
you shall provide continuing investment management of the assets of the Fund in
accordance with the investment objectives, policies and restrictions set forth
in the Prospectus and SAI; the applicable provisions of the 1940 Act and the
Internal Revenue Code of 1986, as amended, (the "Code") relating to regulated
investment companies and all rules and regulations thereunder; and all other
applicable federal and state laws and regulations of which you have knowledge;
subject always to policies and instructions adopted by the Corporation's Board
of Directors. In connection therewith, you shall use reasonable efforts to
manage the Fund so that it will qualify as a regulated investment company under
Subchapter M of the Code and regulations issued thereunder. The Fund shall have
the benefit of the investment analysis and research, the review of current
economic conditions and trends and the consideration of long-range investment
policy generally available to your investment advisory clients. In managing the
Fund in accordance with the requirements set forth in this section 3, you shall
be entitled to receive and act upon advice of counsel to the Corporation or
counsel to you. You shall also make available to the Corporation promptly upon
request all of the Fund's investment records and ledgers as are necessary to
assist the 


                                       2
<PAGE>

Corporation in complying with the requirements of the 1940 Act and other
applicable laws. To the extent required by law, you shall furnish to regulatory
authorities having the requisite authority any information or reports in
connection with the services provided pursuant to this Agreement which may be
requested in order to ascertain whether the operations of the Corporation are
being conducted in a manner consistent with applicable laws and regulations.



         You shall determine the securities, instruments, investments,
currencies, repurchase agreements, futures, options and other contracts relating
to investments to be purchased, sold or entered into by the Fund and place
orders with broker-dealers, foreign currency dealers, futures commission
merchants or others pursuant to your determinations and all in accordance with
Fund policies as expressed in the Registration Statement. You shall determine
what portion of the Fund's portfolio shall be invested in securities and other
assets and what portion, if any, should be held uninvested.



         You shall furnish to the Corporation's Board of Directors periodic
reports on the investment performance of the Fund and on the performance of your
obligations pursuant to this Agreement, and you shall supply such additional
reports and information as the Corporation's officers or Board of Directors
shall reasonably request.



         4. Administrative Services. In addition to the portfolio management
services specified above in section 3, you shall furnish at your expense for the
use of the Fund such office space and facilities in the United States as the
Fund may require for its reasonable needs, and you (or one or more of your
affiliates designated by you) shall render to the Corporation administrative
services on behalf of the Fund necessary for operating as an open-end investment
company and not provided by persons not parties to this Agreement including, but
not limited to, preparing reports to and meeting materials for the Corporation's
Board of Directors and reports and notices to Fund shareholders; supervising,
negotiating contractual arrangements with, to the extent appropriate, and
monitoring the performance of, accounting agents, custodians, depositories,
transfer agents and pricing agents, accountants, attorneys, printers,
underwriters, brokers and dealers, insurers and other persons in any capacity
deemed to be necessary or desirable to Fund operations; preparing and making
filings with the Securities and Exchange Commission (the "SEC") and other
regulatory and self-regulatory organizations, including, but not limited to,
preliminary and definitive proxy materials, post-effective amendments to the
Registration Statement, semi-annual reports on Form N-SAR and notices pursuant
to Rule 24f-2 under the 1940 Act; overseeing the tabulation of proxies by the
Fund's transfer agent; assisting in the preparation and filing of the Fund's
federal, state and local tax returns; preparing and filing the Fund's federal
excise tax return pursuant to Section 4982 of the Code; providing assistance
with investor and public relations matters; monitoring the valuation of
portfolio securities and the calculation of net asset value; monitoring the
registration of Shares of the Fund under applicable federal and state securities
laws; maintaining or causing to be maintained for the Fund all books, records
and reports and any other information required under the 1940 Act, to the extent
that such books, records and reports and other information are not maintained by
the Fund's custodian or other agents of the Fund; assisting in establishing the
accounting policies of the Fund; assisting in the resolution of accounting
issues that may arise with respect to the Fund's operations and consulting with
the Fund's independent accountants, legal counsel and the Fund's other agents as
necessary in connection therewith; establishing and monitoring the Fund's
operating expense budgets; reviewing the Fund's bills; processing the payment of
bills that have been approved by an authorized person; assisting the Fund in
determining the amount of dividends and distributions available to be paid by
the Fund to its shareholders, preparing and arranging for the printing of
dividend notices to shareholders, and providing the transfer and dividend paying
agent, the custodian, and the accounting agent with such information as is
required for such parties to effect the payment of dividends and distributions;
and otherwise assisting the Corporation as it may reasonably request in the
conduct of the 


                                       3
<PAGE>

Fund's business, subject to the direction and control of the Corporation's Board
of Directors. Nothing in this Agreement shall be deemed to shift to you or to
diminish the obligations of any agent of the Fund or any other person not a
party to this Agreement which is obligated to provide services to the Fund.



         5. Allocation of Charges and Expenses. Except as otherwise specifically
provided in this section 5, you shall pay the compensation and expenses of all
Directors, officers and executive employees of the Corporation (including the
Fund's share of payroll taxes) who are affiliated persons of you, and you shall
make available, without expense to the Fund, the services of such of your
directors, officers and employees as may duly be elected officers of the
Corporation, subject to their individual consent to serve and to any limitations
imposed by law. You shall provide at your expense the portfolio management
services described in section 3 hereof and the administrative services described
in section 4 hereof.



         You shall not be required to pay any expenses of the Fund other than
those specifically allocated to you in this section 5. In particular, but
without limiting the generality of the foregoing, you shall not be responsible,
except to the extent of the reasonable compensation of such of the Fund's
Directors and officers as are directors, officers or employees of you whose
services may be involved, for the following expenses of the Fund: organization
expenses of the Fund (including out-of-pocket expenses, but not including your
overhead or employee costs); fees payable to you and to any other Fund advisors
or consultants; legal expenses; auditing and accounting expenses; maintenance of
books and records which are required to be maintained by the Fund's custodian or
other agents of the Corporation; telephone, telex, facsimile, postage and other
communications expenses; taxes and governmental fees; fees, dues and expenses
incurred by the Fund in connection with membership in investment company trade
organizations; fees and expenses of the Fund's accounting agent, custodians,
subcustodians, transfer agents, dividend disbursing agents and registrars;
payment for portfolio pricing or valuation services to pricing agents,
accountants, bankers and other specialists, if any; expenses of preparing share
certificates and, except as provided below in this section 5, other expenses in
connection with the issuance, offering, distribution, sale, redemption or
repurchase of securities issued by the Fund; expenses relating to investor and
public relations; expenses and fees of registering or qualifying Shares of the
Fund for sale; interest charges, bond premiums and other insurance expense;
freight, insurance and other charges in connection with the shipment of the
Fund's portfolio securities; the compensation and all expenses (specifically
including travel expenses relating to Corporation business) of Directors,
officers and employees of the Corporation who are not affiliated persons of you;
brokerage commissions or other costs of acquiring or disposing of any portfolio
securities of the Fund; expenses of printing and distributing reports, notices
and dividends to shareholders; expenses of printing and mailing Prospectuses and
SAIs of the Fund and supplements thereto; costs of stationery; any litigation
expenses; indemnification of Directors and officers of the Corporation; costs of
shareholders' and other meetings; and travel expenses (or an appropriate portion
thereof) of Directors and officers of the Corporation who are directors,
officers or employees of you to the extent that such expenses relate to
attendance at meetings of the Board of Directors of the Corporation or any
committees thereof or advisors thereto held outside of Boston, Massachusetts or
New York, New York.



         You shall not be required to pay expenses of any activity which is
primarily intended to result in sales of Shares of the Fund if and to the extent
that (i) such expenses are required to be borne by a principal underwriter which
acts as the distributor of the Fund's Shares pursuant to an underwriting
agreement which provides that the underwriter shall assume some or all of such
expenses, or (ii) the Corporation on behalf of the Fund shall have adopted a
plan in conformity with Rule 12b-1 under the 1940 Act providing that the Fund
(or some other party) shall assume some or all of such expenses. You shall be
required to pay such of the foregoing sales expenses as are not required to be
paid by the 


                                       4
<PAGE>

principal underwriter pursuant to the underwriting agreement or are not
permitted to be paid by the Fund (or some other party) pursuant to such a plan.



         6. Management Fee. For all services to be rendered, payments to be made
and costs to be assumed by you as provided in sections 3, 4 and 5 hereof, the
Corporation on behalf of the Fund shall pay you in United States Dollars on the
last day of each month the unpaid balance of a fee equal to the excess of 1/12
of 1.10 percent of the average daily net assets as defined below of the Fund for
such month over any compensation waived by you from time to time (as more fully
described below). You shall be entitled to receive during any month such interim
payments of your fee hereunder as you shall request, provided that no such
payment shall exceed 75 percent of the amount of your fee then accrued on the
books of the Fund and unpaid.



         The "average daily net assets" of the Fund shall mean the average of
the values placed on the Fund's net assets as of 4:00 p.m. (New York time) on
each day on which the net asset value of the Fund is determined consistent with
the provisions of Rule 22c-1 under the 1940 Act or, if the Fund lawfully
determines the value of its net assets as of some other time on each business
day, as of such time. The value of the net assets of the Fund shall always be
determined pursuant to the applicable provisions of the Articles and the
Registration Statement. If the determination of net asset value does not take
place for any particular day, then for the purposes of this section 6, the value
of the net assets of the Fund as last determined shall be deemed to be the value
of its net assets as of 4:00 p.m. (New York time), or as of such other time as
the value of the net assets of the Fund's portfolio may be lawfully determined
on that day. If the Fund determines the value of the net assets of its portfolio
more than once on any day, then the last such determination thereof on that day
shall be deemed to be the sole determination thereof on that day for the
purposes of this section 6.



         You may waive all or a portion of your fees provided for hereunder and
such waiver shall be treated as a reduction in purchase price of your services.
You shall be contractually bound hereunder by the terms of any publicly
announced waiver of your fee, or any limitation of the Fund's expenses, as if
such waiver or limitation were fully set forth herein.



         7. Avoidance of Inconsistent Position; Services Not Exclusive. In
connection with purchases or sales of portfolio securities and other investments
for the account of the Fund, neither you nor any of your directors, officers or
employees shall act as a principal or agent or receive any commission. You or
your agent shall arrange for the placing of all orders for the purchase and sale
of portfolio securities and other investments for the Fund's account with
brokers or dealers selected by you in accordance with Fund policies as expressed
in the Registration Statement. If any occasion should arise in which you give
any advice to clients of yours concerning the Shares of the Fund, you shall act
solely as investment counsel for such clients and not in any way on behalf of
the Fund.



         Your services to the Fund pursuant to this Agreement are not to be
deemed to be exclusive and it is understood that you may render investment
advice, management and services to others. In acting under this Agreement, you
shall be an independent contractor and not an agent of the Corporation. Whenever
the Fund and one or more other accounts or investment companies advised by the
Manager have available funds for investment, investments suitable and
appropriate for each shall be allocated in accordance with procedures believed
by the Manager to be equitable to each entity. Similarly, opportunities to sell
securities shall be allocated in a manner believed by the Manager to be
equitable. 


                                       5
<PAGE>

The Fund recognizes that in some cases this procedure may adversely affect the
size of the position that may be acquired or disposed of for the Fund.



         8. Limitation of Liability of Manager. As an inducement to your
undertaking to render services pursuant to this Agreement, the Corporation
agrees that you shall not be liable under this Agreement for any error of
judgment or mistake of law or for any loss suffered by the Fund in connection
with the matters to which this Agreement relates, provided that nothing in this
Agreement shall be deemed to protect or purport to protect you against any
liability to the Corporation, the Fund or its shareholders to which you would
otherwise be subject by reason of willful misfeasance, bad faith or gross
negligence in the performance of your duties, or by reason of your reckless
disregard of your obligations and duties hereunder. Any person, even though also
employed by you, who may be or become an employee of and paid by the Fund shall
be deemed, when acting within the scope of his or her employment by the Fund, to
be acting in such employment solely for the Fund and not as your employee or
agent.



         9. Duration and Termination of This Agreement. This Agreement shall
remain in force until September 30, 1999, and continue in force from year to
year thereafter, but only so long as such continuance is specifically approved
at least annually (a) by the vote of a majority of the Directors who are not
parties to this Agreement or interested persons of any party to this Agreement,
cast in person at a meeting called for the purpose of voting on such approval,
and (b) by the Directors of the Corporation, or by the vote of a majority of the
outstanding voting securities of the Fund. The aforesaid requirement that
continuance of this Agreement be "specifically approved at least annually" shall
be construed in a manner consistent with the 1940 Act and the rules and
regulations thereunder and any applicable SEC exemptive order therefrom.



         This Agreement may be terminated with respect to the Fund at any time,
without the payment of any penalty, by the vote of a majority of the outstanding
voting securities of the Fund or by the Corporation's Board of Directors on 60
days' written notice to you, or by you on 60 days' written notice to the
Corporation. This Agreement shall terminate automatically in the event of its
assignment.



         10. Amendment of this Agreement. No provision of this Agreement may be
changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party against whom enforcement of the change, waiver,
discharge or termination is sought, and no amendment of this Agreement shall be
effective until approved in a manner consistent with the 1940 Act and rules and
regulations thereunder and any applicable SEC exemptive order therefrom.



         11. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or limit any of the
provisions hereof or otherwise affect their construction or effect. This
Agreement may be executed simultaneously in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.



         In interpreting the provisions of this Agreement, the definitions
contained in Section 2(a) of the 1940 Act (particularly the definitions of
"affiliated person," "assignment" and "majority of the outstanding voting
securities"), as from time to time amended, shall be applied, subject, however,
to such exemptions as may be granted by the SEC by any rule, regulation or
order.



                                       6
<PAGE>

         This Agreement shall be construed in accordance with the laws of the
State of Maryland, provided that nothing herein shall be construed in a manner
inconsistent with the 1940 Act, or in a manner which would cause the Fund to
fail to comply with the requirements of Subchapter M of the Code.



         This Agreement shall supersede all prior investment advisory or
management agreements entered into between you and the Corporation on behalf of
the Fund.



         If you are in agreement with the foregoing, please execute the form of
acceptance on the accompanying counterpart of this letter and return such
counterpart to the Corporation, whereupon this letter shall become a binding
contract effective as of the date of this Agreement.



                                       Yours very truly,

                                       SCUDDER INTERNATIONAL FUND, INC.,
                                       on behalf of

                                       Scudder Pacific Opportunities Fund




                                       By: /s/Thomas F. McDonough
                                           --------------------------
                                               Vice President


         The foregoing Agreement is hereby accepted as of the date hereof.

                                       SCUDDER KEMPER INVESTMENTS, INC.




                                       By: /s/Daniel Pierce
                                           --------------------

                                                 Managing Director


                                       7

                                                                  Exhibit (d)(4)
                        Scudder International Fund, Inc.
                                 345 Park Avenue
                            New York, New York 10154

                                                               September 7, 1998


Scudder Kemper Investments, Inc.
345 Park Avenue
New York, New York  10154


                         Investment Management Agreement
                       Scudder Greater Europe Growth Fund

Ladies and Gentlemen:



         Scudder International Fund, Inc. (the "Corporation") has been
established as a Maryland corporation to engage in the business of an investment
company. Pursuant to the Corporation's Articles of Incorporation, as amended
from time-to-time (the "Articles"), the Board of Directors has divided the
Corporation's shares of capital stock, par value $.01 per share, (the "Shares")
into separate series, or funds, including Scudder Greater Europe Growth Fund
(the "Fund"). Series may be abolished and dissolved, and additional series
established, from time to time by action of the Directors.



         The Corporation, on behalf of the Fund, has selected you to act as the
sole investment manager of the Fund and to provide certain other services, as
more fully set forth below, and you have indicated that you are willing to act
as such investment manager and to perform such services under the terms and
conditions hereinafter set forth. Accordingly, the Corporation on behalf of the
Fund agrees with you as follows:



         1. Delivery of Documents. The Corporation engages in the business of
investing and reinvesting the assets of the Fund in the manner and in accordance
with the investment objectives, policies and restrictions specified in the
currently effective Prospectus (the "Prospectus") and Statement of Additional
Information (the "SAI") relating to the Fund included in the Corporation's
Registration Statement on Form N-1A, as amended from time to time, (the
"Registration Statement") filed by the Corporation under the Investment Company
Act of 1940, as amended, (the "1940 Act") and the Securities Act of 1933, as
amended. Copies of the documents referred to in the preceding sentence have been
furnished to you by the Corporation. The Corporation has also furnished you with
copies properly certified or authenticated of each of the following additional
documents related to the Corporation and the Fund:



(a)      The Articles dated June 23, 1975, as amended to date.



(b)      By-Laws of the Corporation as in effect on the date hereof (the
         "By-Laws").



(c)      Resolutions of the Directors of the Corporation and the shareholders of
         the Fund selecting you as investment manager and approving the form of
         this Agreement.

<PAGE>


         The Corporation will furnish you from time to time with copies,
properly certified or authenticated, of all amendments of or supplements, if
any, to the foregoing, including the Prospectus, the SAI and the Registration
Statement.


         2. Sublicense to Use the Scudder Trademarks. As exclusive licensee of
the rights to use and sublicense the use of the "Scudder," "Scudder Kemper
Investments, Inc." and "Scudder, Stevens & Clark, Inc." trademarks (together,
the "Scudder Marks"), you hereby grant the Corporation a nonexclusive right and
sublicense to use (i) the "Scudder" name and mark as part of the Corporation's
name (the "Fund Name"), and (ii) the Scudder Marks in connection with the
Corporation's investment products and services, in each case only for so long as
this Agreement, any other investment management agreement between you (or any
organization which shall have succeeded to your business as investment manager
("your Successor")) and the Corporation, or any extension, renewal or amendment
hereof or thereof remains in effect, and only for so long as you are a licensee
of the Scudder Marks, provided however, that you agree to use your best efforts
to maintain your license to use and sublicense the Scudder Marks. The
Corporation agrees that it shall have no right to sublicense or assign rights to
use the Scudder Marks, shall acquire no interest in the Scudder Marks other than
the rights granted herein, that all of the Corporation's uses of the Scudder
Marks shall inure to the benefit of Scudder Trust Company as owner and licensor
of the Scudder Marks (the "Trademark Owner"), and that the Corporation shall not
challenge the validity of the Scudder Marks or the Trademark Owner's ownership
thereof. The Corporation further agrees that all services and products it offers
in connection with the Scudder Marks shall meet commercially reasonable
standards of quality, as may be determined by you or the Trademark Owner from
time to time, provided that you acknowledge that the services and products the
Corporation rendered during the one-year period preceding the date of this
Agreement are acceptable. At your reasonable request, the Corporation shall
cooperate with you and the Trademark Owner and shall execute and deliver any and
all documents necessary to maintain and protect (including but not limited to in
connection with any trademark infringement action) the Scudder Marks and/or
enter the Corporation as a registered user thereof. At such time as this
Agreement or any other investment management agreement shall no longer be in
effect between you (or your Successor) and the Corporation, or you no longer are
a licensee of the Scudder Marks, the Corporation shall (to the extent that, and
as soon as, it lawfully can) cease to use the Fund Name or any other name
indicating that it is advised by, managed by or otherwise connected with you (or
your Successor) or the Trademark Owner. In no event shall the Corporation use
the Scudder Marks or any other name or mark confusingly similar thereto
(including, but not limited to, any name or mark that includes the name
"Scudder") if this Agreement or any other investment advisory agreement between
you (or your Successor) and the Fund is terminated.



         3. Portfolio Management Services. As manager of the assets of the Fund,
you shall provide continuing investment management of the assets of the Fund in
accordance with the investment objectives, policies and restrictions set forth
in the Prospectus and SAI; the applicable provisions of the 1940 Act and the
Internal Revenue Code of 1986, as amended, (the "Code") relating to regulated
investment companies and all rules and regulations thereunder; and all other
applicable federal and state laws and regulations of which you have knowledge;
subject always to policies and instructions adopted by the Corporation's Board
of Directors. In connection therewith, you shall use reasonable efforts to
manage the Fund so that it will qualify as a regulated investment company under
Subchapter M of the Code and regulations issued thereunder. The Fund shall have
the benefit of the investment analysis and research, the review of current
economic conditions and trends and the consideration of long-range investment
policy generally available to your investment advisory clients. In managing the
Fund in accordance with the requirements set forth in this section 3, you shall
be entitled to receive and act upon advice of counsel to the Corporation or
counsel to you. You shall also make available to the Corporation promptly upon
request all of the Fund's investment records and ledgers as are necessary to
assist the 


                                       2
<PAGE>

Corporation in complying with the requirements of the 1940 Act and other
applicable laws. To the extent required by law, you shall furnish to regulatory
authorities having the requisite authority any information or reports in
connection with the services provided pursuant to this Agreement which may be
requested in order to ascertain whether the operations of the Corporation are
being conducted in a manner consistent with applicable laws and regulations.



         You shall determine the securities, instruments, investments,
currencies, repurchase agreements, futures, options and other contracts relating
to investments to be purchased, sold or entered into by the Fund and place
orders with broker-dealers, foreign currency dealers, futures commission
merchants or others pursuant to your determinations and all in accordance with
Fund policies as expressed in the Registration Statement. You shall determine
what portion of the Fund's portfolio shall be invested in securities and other
assets and what portion, if any, should be held uninvested.



         You shall furnish to the Corporation's Board of Directors periodic
reports on the investment performance of the Fund and on the performance of your
obligations pursuant to this Agreement, and you shall supply such additional
reports and information as the Corporation's officers or Board of Directors
shall reasonably request.



         4. Administrative Services. In addition to the portfolio management
services specified above in section 3, you shall furnish at your expense for the
use of the Fund such office space and facilities in the United States as the
Fund may require for its reasonable needs, and you (or one or more of your
affiliates designated by you) shall render to the Corporation administrative
services on behalf of the Fund necessary for operating as an open-end investment
company and not provided by persons not parties to this Agreement including, but
not limited to, preparing reports to and meeting materials for the Corporation's
Board of Directors and reports and notices to Fund shareholders; supervising,
negotiating contractual arrangements with, to the extent appropriate, and
monitoring the performance of, accounting agents, custodians, depositories,
transfer agents and pricing agents, accountants, attorneys, printers,
underwriters, brokers and dealers, insurers and other persons in any capacity
deemed to be necessary or desirable to Fund operations; preparing and making
filings with the Securities and Exchange Commission (the "SEC") and other
regulatory and self-regulatory organizations, including, but not limited to,
preliminary and definitive proxy materials, post-effective amendments to the
Registration Statement, semi-annual reports on Form N-SAR and notices pursuant
to Rule 24f-2 under the 1940 Act; overseeing the tabulation of proxies by the
Fund's transfer agent; assisting in the preparation and filing of the Fund's
federal, state and local tax returns; preparing and filing the Fund's federal
excise tax return pursuant to Section 4982 of the Code; providing assistance
with investor and public relations matters; monitoring the valuation of
portfolio securities and the calculation of net asset value; monitoring the
registration of Shares of the Fund under applicable federal and state securities
laws; maintaining or causing to be maintained for the Fund all books, records
and reports and any other information required under the 1940 Act, to the extent
that such books, records and reports and other information are not maintained by
the Fund's custodian or other agents of the Fund; assisting in establishing the
accounting policies of the Fund; assisting in the resolution of accounting
issues that may arise with respect to the Fund's operations and consulting with
the Fund's independent accountants, legal counsel and the Fund's other agents as
necessary in connection therewith; establishing and monitoring the Fund's
operating expense budgets; reviewing the Fund's bills; processing the payment of
bills that have been approved by an authorized person; assisting the Fund in
determining the amount of dividends and distributions available to be paid by
the Fund to its shareholders, preparing and arranging for the printing of
dividend notices to shareholders, and providing the transfer and dividend paying
agent, the custodian, and the accounting agent with such information as is
required for such parties to effect the payment of dividends and distributions;
and otherwise assisting the Corporation as it may reasonably request in the
conduct of the 


                                       3
<PAGE>

Fund's business, subject to the direction and control of the Corporation's Board
of Directors. Nothing in this Agreement shall be deemed to shift to you or to
diminish the obligations of any agent of the Fund or any other person not a
party to this Agreement which is obligated to provide services to the Fund.



         5. Allocation of Charges and Expenses. Except as otherwise specifically
provided in this section 5, you shall pay the compensation and expenses of all
Directors, officers and executive employees of the Corporation (including the
Fund's share of payroll taxes) who are affiliated persons of you, and you shall
make available, without expense to the Fund, the services of such of your
directors, officers and employees as may duly be elected officers of the
Corporation, subject to their individual consent to serve and to any limitations
imposed by law. You shall provide at your expense the portfolio management
services described in section 3 hereof and the administrative services described
in section 4 hereof.



         You shall not be required to pay any expenses of the Fund other than
those specifically allocated to you in this section 5. In particular, but
without limiting the generality of the foregoing, you shall not be responsible,
except to the extent of the reasonable compensation of such of the Fund's
Directors and officers as are directors, officers or employees of you whose
services may be involved, for the following expenses of the Fund: organization
expenses of the Fund (including out-of-pocket expenses, but not including your
overhead or employee costs); fees payable to you and to any other Fund advisors
or consultants; legal expenses; auditing and accounting expenses; maintenance of
books and records which are required to be maintained by the Fund's custodian or
other agents of the Corporation; telephone, telex, facsimile, postage and other
communications expenses; taxes and governmental fees; fees, dues and expenses
incurred by the Fund in connection with membership in investment company trade
organizations; fees and expenses of the Fund's accounting agent, custodians,
subcustodians, transfer agents, dividend disbursing agents and registrars;
payment for portfolio pricing or valuation services to pricing agents,
accountants, bankers and other specialists, if any; expenses of preparing share
certificates and, except as provided below in this section 5, other expenses in
connection with the issuance, offering, distribution, sale, redemption or
repurchase of securities issued by the Fund; expenses relating to investor and
public relations; expenses and fees of registering or qualifying Shares of the
Fund for sale; interest charges, bond premiums and other insurance expense;
freight, insurance and other charges in connection with the shipment of the
Fund's portfolio securities; the compensation and all expenses (specifically
including travel expenses relating to Corporation business) of Directors,
officers and employees of the Corporation who are not affiliated persons of you;
brokerage commissions or other costs of acquiring or disposing of any portfolio
securities of the Fund; expenses of printing and distributing reports, notices
and dividends to shareholders; expenses of printing and mailing Prospectuses and
SAIs of the Fund and supplements thereto; costs of stationery; any litigation
expenses; indemnification of Directors and officers of the Corporation; costs of
shareholders' and other meetings; and travel expenses (or an appropriate portion
thereof) of Directors and officers of the Corporation who are directors,
officers or employees of you to the extent that such expenses relate to
attendance at meetings of the Board of Directors of the Corporation or any
committees thereof or advisors thereto held outside of Boston, Massachusetts or
New York, New York.



         You shall not be required to pay expenses of any activity which is
primarily intended to result in sales of Shares of the Fund if and to the extent
that (i) such expenses are required to be borne by a principal underwriter which
acts as the distributor of the Fund's Shares pursuant to an underwriting
agreement which provides that the underwriter shall assume some or all of such
expenses, or (ii) the Corporation on behalf of the Fund shall have adopted a
plan in conformity with Rule 12b-1 under the 1940 Act providing that the Fund
(or some other party) shall assume some or all of such expenses. You shall be
required to pay such of the foregoing sales expenses as are not required to be
paid by the 


                                       4
<PAGE>

principal underwriter pursuant to the underwriting agreement or are not
permitted to be paid by the Fund (or some other party) pursuant to such a plan.



         6. Management Fee. For all services to be rendered, payments to be made
and costs to be assumed by you as provided in sections 3, 4 and 5 hereof, the
Corporation on behalf of the Fund shall pay you in United States Dollars on the
last day of each month the unpaid balance of a fee equal to the excess of 1/12
of 1 percent of the average daily net assets as defined below of the Fund for
such month over any compensation waived by you from time to time (as more fully
described below). You shall be entitled to receive during any month such interim
payments of your fee hereunder as you shall request, provided that no such
payment shall exceed 75 percent of the amount of your fee then accrued on the
books of the Fund and unpaid.



         The "average daily net assets" of the Fund shall mean the average of
the values placed on the Fund's net assets as of 4:00 p.m. (New York time) on
each day on which the net asset value of the Fund is determined consistent with
the provisions of Rule 22c-1 under the 1940 Act or, if the Fund lawfully
determines the value of its net assets as of some other time on each business
day, as of such time. The value of the net assets of the Fund shall always be
determined pursuant to the applicable provisions of the Articles and the
Registration Statement. If the determination of net asset value does not take
place for any particular day, then for the purposes of this section 6, the value
of the net assets of the Fund as last determined shall be deemed to be the value
of its net assets as of 4:00 p.m. (New York time), or as of such other time as
the value of the net assets of the Fund's portfolio may be lawfully determined
on that day. If the Fund determines the value of the net assets of its portfolio
more than once on any day, then the last such determination thereof on that day
shall be deemed to be the sole determination thereof on that day for the
purposes of this section 6.



         You may waive all or a portion of your fees provided for hereunder and
such waiver shall be treated as a reduction in purchase price of your services.
You shall be contractually bound hereunder by the terms of any publicly
announced waiver of your fee, or any limitation of the Fund's expenses, as if
such waiver or limitation were fully set forth herein.



         7. Avoidance of Inconsistent Position; Services Not Exclusive. In
connection with purchases or sales of portfolio securities and other investments
for the account of the Fund, neither you nor any of your directors, officers or
employees shall act as a principal or agent or receive any commission. You or
your agent shall arrange for the placing of all orders for the purchase and sale
of portfolio securities and other investments for the Fund's account with
brokers or dealers selected by you in accordance with Fund policies as expressed
in the Registration Statement. If any occasion should arise in which you give
any advice to clients of yours concerning the Shares of the Fund, you shall act
solely as investment counsel for such clients and not in any way on behalf of
the Fund.



         Your services to the Fund pursuant to this Agreement are not to be
deemed to be exclusive and it is understood that you may render investment
advice, management and services to others. In acting under this Agreement, you
shall be an independent contractor and not an agent of the Corporation. Whenever
the Fund and one or more other accounts or investment companies advised by the
Manager have available funds for investment, investments suitable and
appropriate for each shall be allocated in accordance with procedures believed
by the Manager to be equitable to each entity. Similarly, opportunities to sell
securities shall be allocated in a manner believed by the Manager to be
equitable. 


                                       5
<PAGE>

The Fund recognizes that in some cases this procedure may adversely affect the
size of the position that may be acquired or disposed of for the Fund.



         8. Limitation of Liability of Manager. As an inducement to your
undertaking to render services pursuant to this Agreement, the Corporation
agrees that you shall not be liable under this Agreement for any error of
judgment or mistake of law or for any loss suffered by the Fund in connection
with the matters to which this Agreement relates, provided that nothing in this
Agreement shall be deemed to protect or purport to protect you against any
liability to the Corporation, the Fund or its shareholders to which you would
otherwise be subject by reason of willful misfeasance, bad faith or gross
negligence in the performance of your duties, or by reason of your reckless
disregard of your obligations and duties hereunder. Any person, even though also
employed by you, who may be or become an employee of and paid by the Fund shall
be deemed, when acting within the scope of his or her employment by the Fund, to
be acting in such employment solely for the Fund and not as your employee or
agent.



         9. Duration and Termination of This Agreement. This Agreement shall
remain in force until September 30, 1999, and continue in force from year to
year thereafter, but only so long as such continuance is specifically approved
at least annually (a) by the vote of a majority of the Directors who are not
parties to this Agreement or interested persons of any party to this Agreement,
cast in person at a meeting called for the purpose of voting on such approval,
and (b) by the Directors of the Corporation, or by the vote of a majority of the
outstanding voting securities of the Fund. The aforesaid requirement that
continuance of this Agreement be "specifically approved at least annually" shall
be construed in a manner consistent with the 1940 Act and the rules and
regulations thereunder and any applicable SEC exemptive order therefrom.



         This Agreement may be terminated with respect to the Fund at any time,
without the payment of any penalty, by the vote of a majority of the outstanding
voting securities of the Fund or by the Corporation's Board of Directors on 60
days' written notice to you, or by you on 60 days' written notice to the
Corporation. This Agreement shall terminate automatically in the event of its
assignment.



         10. Amendment of this Agreement. No provision of this Agreement may be
changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party against whom enforcement of the change, waiver,
discharge or termination is sought, and no amendment of this Agreement shall be
effective until approved in a manner consistent with the 1940 Act and rules and
regulations thereunder and any applicable SEC exemptive order therefrom.



         11. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or limit any of the
provisions hereof or otherwise affect their construction or effect. This
Agreement may be executed simultaneously in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.



         In interpreting the provisions of this Agreement, the definitions
contained in Section 2(a) of the 1940 Act (particularly the definitions of
"affiliated person," "assignment" and "majority of the outstanding voting
securities"), as from time to time amended, shall be applied, subject, however,
to such exemptions as may be granted by the SEC by any rule, regulation or
order.

                                       6
<PAGE>



         This Agreement shall be construed in accordance with the laws of the
State of Maryland, provided that nothing herein shall be construed in a manner
inconsistent with the 1940 Act, or in a manner which would cause the Fund to
fail to comply with the requirements of Subchapter M of the Code.



         This Agreement shall supersede all prior investment advisory or
management agreements entered into between you and the Corporation on behalf of
the Fund.



         If you are in agreement with the foregoing, please execute the form of
acceptance on the accompanying counterpart of this letter and return such
counterpart to the Corporation, whereupon this letter shall become a binding
contract effective as of the date of this Agreement.



                                    Yours very truly,

                                    SCUDDER INTERNATIONAL FUND, INC.,

                                    on behalf of

                                    Scudder Greater Europe Growth Fund




                                    By: /s/Thomas F. McDonough
                                        --------------------------
                                            President


         The foregoing Agreement is hereby accepted as of the date hereof.

                                    SCUDDER KEMPER INVESTMENTS, INC.




                                    By: /s/Daniel Pierce
                                        --------------------
                                              Managing Director


                                       7

                                                                  Exhibit (d)(5)
                        Scudder International Fund, Inc.
                                 345 Park Avenue
                            New York, New York 10154

                                                               September 7, 1998


Scudder Kemper Investments, Inc.
345 Park Avenue
New York, New York  10154


                         Investment Management Agreement
                      Scudder Emerging Markets Growth Fund

Ladies and Gentlemen:



         Scudder International Fund, Inc. (the "Corporation") has been
established as a Maryland corporation to engage in the business of an investment
company. Pursuant to the Corporation's Articles of Incorporation, as amended
from time-to-time (the "Articles"), the Board of Directors has divided the
Corporation's shares of capital stock, par value $.01 per share, (the "Shares")
into separate series, or funds, including Scudder Emerging Markets Growth Fund
(the "Fund"). Series may be abolished and dissolved, and additional series
established, from time to time by action of the Directors.



         The Corporation, on behalf of the Fund, has selected you to act as the
sole investment manager of the Fund and to provide certain other services, as
more fully set forth below, and you have indicated that you are willing to act
as such investment manager and to perform such services under the terms and
conditions hereinafter set forth. Accordingly, the Corporation on behalf of the
Fund agrees with you as follows:



         1. Delivery of Documents. The Corporation engages in the business of
investing and reinvesting the assets of the Fund in the manner and in accordance
with the investment objectives, policies and restrictions specified in the
currently effective Prospectus (the "Prospectus") and Statement of Additional
Information (the "SAI") relating to the Fund included in the Corporation's
Registration Statement on Form N-1A, as amended from time to time, (the
"Registration Statement") filed by the Corporation under the Investment Company
Act of 1940, as amended, (the "1940 Act") and the Securities Act of 1933, as
amended. Copies of the documents referred to in the preceding sentence have been
furnished to you by the Corporation. The Corporation has also furnished you with
copies properly certified or authenticated of each of the following additional
documents related to the Corporation and the Fund:



(a)      The Articles dated June 23, 1975, as amended to date.



(b)      By-Laws of the Corporation as in effect on the date hereof (the
         "By-Laws").



(c)      Resolutions of the Directors of the Corporation and the shareholders of
         the Fund selecting you as investment manager and approving the form of
         this Agreement.


<PAGE>


         The Corporation will furnish you from time to time with copies,
properly certified or authenticated, of all amendments of or supplements, if
any, to the foregoing, including the Prospectus, the SAI and the Registration
Statement.


         2. Sublicense to Use the Scudder Trademarks. As exclusive licensee of
the rights to use and sublicense the use of the "Scudder," "Scudder Kemper
Investments, Inc." and "Scudder, Stevens & Clark, Inc." trademarks (together,
the "Scudder Marks"), you hereby grant the Corporation a nonexclusive right and
sublicense to use (i) the "Scudder" name and mark as part of the Corporation's
name (the "Fund Name"), and (ii) the Scudder Marks in connection with the
Corporation's investment products and services, in each case only for so long as
this Agreement, any other investment management agreement between you (or any
organization which shall have succeeded to your business as investment manager
("your Successor")) and the Corporation, or any extension, renewal or amendment
hereof or thereof remains in effect, and only for so long as you are a licensee
of the Scudder Marks, provided however, that you agree to use your best efforts
to maintain your license to use and sublicense the Scudder Marks. The
Corporation agrees that it shall have no right to sublicense or assign rights to
use the Scudder Marks, shall acquire no interest in the Scudder Marks other than
the rights granted herein, that all of the Corporation's uses of the Scudder
Marks shall inure to the benefit of Scudder Trust Company as owner and licensor
of the Scudder Marks (the "Trademark Owner"), and that the Corporation shall not
challenge the validity of the Scudder Marks or the Trademark Owner's ownership
thereof. The Corporation further agrees that all services and products it offers
in connection with the Scudder Marks shall meet commercially reasonable
standards of quality, as may be determined by you or the Trademark Owner from
time to time, provided that you acknowledge that the services and products the
Corporation rendered during the one-year period preceding the date of this
Agreement are acceptable. At your reasonable request, the Corporation shall
cooperate with you and the Trademark Owner and shall execute and deliver any and
all documents necessary to maintain and protect (including but not limited to in
connection with any trademark infringement action) the Scudder Marks and/or
enter the Corporation as a registered user thereof. At such time as this
Agreement or any other investment management agreement shall no longer be in
effect between you (or your Successor) and the Corporation, or you no longer are
a licensee of the Scudder Marks, the Corporation shall (to the extent that, and
as soon as, it lawfully can) cease to use the Fund Name or any other name
indicating that it is advised by, managed by or otherwise connected with you (or
your Successor) or the Trademark Owner. In no event shall the Corporation use
the Scudder Marks or any other name or mark confusingly similar thereto
(including, but not limited to, any name or mark that includes the name
"Scudder") if this Agreement or any other investment advisory agreement between
you (or your Successor) and the Fund is terminated.



         3. Portfolio Management Services. As manager of the assets of the Fund,
you shall provide continuing investment management of the assets of the Fund in
accordance with the investment objectives, policies and restrictions set forth
in the Prospectus and SAI; the applicable provisions of the 1940 Act and the
Internal Revenue Code of 1986, as amended, (the "Code") relating to regulated
investment companies and all rules and regulations thereunder; and all other
applicable federal and state laws and regulations of which you have knowledge;
subject always to policies and instructions adopted by the Corporation's Board
of Directors. In connection therewith, you shall use reasonable efforts to
manage the Fund so that it will qualify as a regulated investment company under
Subchapter M of the Code and regulations issued thereunder. The Fund shall have
the benefit of the investment analysis and research, the review of current
economic conditions and trends and the consideration of long-range investment
policy generally available to your investment advisory clients. In managing the
Fund in accordance with the requirements set forth in this section 3, you shall
be entitled to receive and act upon advice of counsel to the Corporation or
counsel to you. You shall also make available to the Corporation promptly upon
request all of the Fund's investment records and ledgers as are necessary to
assist the 


                                       2
<PAGE>

Corporation in complying with the requirements of the 1940 Act and other
applicable laws. To the extent required by law, you shall furnish to regulatory
authorities having the requisite authority any information or reports in
connection with the services provided pursuant to this Agreement which may be
requested in order to ascertain whether the operations of the Corporation are
being conducted in a manner consistent with applicable laws and regulations.



         You shall determine the securities, instruments, investments,
currencies, repurchase agreements, futures, options and other contracts relating
to investments to be purchased, sold or entered into by the Fund and place
orders with broker-dealers, foreign currency dealers, futures commission
merchants or others pursuant to your determinations and all in accordance with
Fund policies as expressed in the Registration Statement. You shall determine
what portion of the Fund's portfolio shall be invested in securities and other
assets and what portion, if any, should be held uninvested.



         You shall furnish to the Corporation's Board of Directors periodic
reports on the investment performance of the Fund and on the performance of your
obligations pursuant to this Agreement, and you shall supply such additional
reports and information as the Corporation's officers or Board of Directors
shall reasonably request.



         4. Administrative Services. In addition to the portfolio management
services specified above in section 3, you shall furnish at your expense for the
use of the Fund such office space and facilities in the United States as the
Fund may require for its reasonable needs, and you (or one or more of your
affiliates designated by you) shall render to the Corporation administrative
services on behalf of the Fund necessary for operating as an open-end investment
company and not provided by persons not parties to this Agreement including, but
not limited to, preparing reports to and meeting materials for the Corporation's
Board of Directors and reports and notices to Fund shareholders; supervising,
negotiating contractual arrangements with, to the extent appropriate, and
monitoring the performance of, accounting agents, custodians, depositories,
transfer agents and pricing agents, accountants, attorneys, printers,
underwriters, brokers and dealers, insurers and other persons in any capacity
deemed to be necessary or desirable to Fund operations; preparing and making
filings with the Securities and Exchange Commission (the "SEC") and other
regulatory and self-regulatory organizations, including, but not limited to,
preliminary and definitive proxy materials, post-effective amendments to the
Registration Statement, semi-annual reports on Form N-SAR and notices pursuant
to Rule 24f-2 under the 1940 Act; overseeing the tabulation of proxies by the
Fund's transfer agent; assisting in the preparation and filing of the Fund's
federal, state and local tax returns; preparing and filing the Fund's federal
excise tax return pursuant to Section 4982 of the Code; providing assistance
with investor and public relations matters; monitoring the valuation of
portfolio securities and the calculation of net asset value; monitoring the
registration of Shares of the Fund under applicable federal and state securities
laws; maintaining or causing to be maintained for the Fund all books, records
and reports and any other information required under the 1940 Act, to the extent
that such books, records and reports and other information are not maintained by
the Fund's custodian or other agents of the Fund; assisting in establishing the
accounting policies of the Fund; assisting in the resolution of accounting
issues that may arise with respect to the Fund's operations and consulting with
the Fund's independent accountants, legal counsel and the Fund's other agents as
necessary in connection therewith; establishing and monitoring the Fund's
operating expense budgets; reviewing the Fund's bills; processing the payment of
bills that have been approved by an authorized person; assisting the Fund in
determining the amount of dividends and distributions available to be paid by
the Fund to its shareholders, preparing and arranging for the printing of
dividend notices to shareholders, and providing the transfer and dividend paying
agent, the custodian, and the accounting agent with such information as is
required for such parties to effect the payment of dividends and distributions;
and otherwise assisting the Corporation as it may reasonably request in the
conduct of the 


                                       3
<PAGE>

Fund's business, subject to the direction and control of the Corporation's Board
of Directors. Nothing in this Agreement shall be deemed to shift to you or to
diminish the obligations of any agent of the Fund or any other person not a
party to this Agreement which is obligated to provide services to the Fund.



         5. Allocation of Charges and Expenses. Except as otherwise specifically
provided in this section 5, you shall pay the compensation and expenses of all
Directors, officers and executive employees of the Corporation (including the
Fund's share of payroll taxes) who are affiliated persons of you, and you shall
make available, without expense to the Fund, the services of such of your
directors, officers and employees as may duly be elected officers of the
Corporation, subject to their individual consent to serve and to any limitations
imposed by law. You shall provide at your expense the portfolio management
services described in section 3 hereof and the administrative services described
in section 4 hereof.



         You shall not be required to pay any expenses of the Fund other than
those specifically allocated to you in this section 5. In particular, but
without limiting the generality of the foregoing, you shall not be responsible,
except to the extent of the reasonable compensation of such of the Fund's
Directors and officers as are directors, officers or employees of you whose
services may be involved, for the following expenses of the Fund: organization
expenses of the Fund (including out-of-pocket expenses, but not including your
overhead or employee costs); fees payable to you and to any other Fund advisors
or consultants; legal expenses; auditing and accounting expenses; maintenance of
books and records which are required to be maintained by the Fund's custodian or
other agents of the Corporation; telephone, telex, facsimile, postage and other
communications expenses; taxes and governmental fees; fees, dues and expenses
incurred by the Fund in connection with membership in investment company trade
organizations; fees and expenses of the Fund's accounting agent, custodians,
subcustodians, transfer agents, dividend disbursing agents and registrars;
payment for portfolio pricing or valuation services to pricing agents,
accountants, bankers and other specialists, if any; expenses of preparing share
certificates and, except as provided below in this section 5, other expenses in
connection with the issuance, offering, distribution, sale, redemption or
repurchase of securities issued by the Fund; expenses relating to investor and
public relations; expenses and fees of registering or qualifying Shares of the
Fund for sale; interest charges, bond premiums and other insurance expense;
freight, insurance and other charges in connection with the shipment of the
Fund's portfolio securities; the compensation and all expenses (specifically
including travel expenses relating to Corporation business) of Directors,
officers and employees of the Corporation who are not affiliated persons of you;
brokerage commissions or other costs of acquiring or disposing of any portfolio
securities of the Fund; expenses of printing and distributing reports, notices
and dividends to shareholders; expenses of printing and mailing Prospectuses and
SAIs of the Fund and supplements thereto; costs of stationery; any litigation
expenses; indemnification of Directors and officers of the Corporation; costs of
shareholders' and other meetings; and travel expenses (or an appropriate portion
thereof) of Directors and officers of the Corporation who are directors,
officers or employees of you to the extent that such expenses relate to
attendance at meetings of the Board of Directors of the Corporation or any
committees thereof or advisors thereto held outside of Boston, Massachusetts or
New York, New York.



         You shall not be required to pay expenses of any activity which is
primarily intended to result in sales of Shares of the Fund if and to the extent
that (i) such expenses are required to be borne by a principal underwriter which
acts as the distributor of the Fund's Shares pursuant to an underwriting
agreement which provides that the underwriter shall assume some or all of such
expenses, or (ii) the Corporation on behalf of the Fund shall have adopted a
plan in conformity with Rule 12b-1 under the 1940 Act providing that the Fund
(or some other party) shall assume some or all of such expenses. You shall be
required to pay such of the foregoing sales expenses as are not required to be
paid by the 


                                       4
<PAGE>

principal underwriter pursuant to the underwriting agreement or are not
permitted to be paid by the Fund (or some other party) pursuant to such a plan.



         6. Management Fee. For all services to be rendered, payments to be made
and costs to be assumed by you as provided in sections 3, 4 and 5 hereof, the
Corporation on behalf of the Fund shall pay you in United States Dollars on the
last day of each month the unpaid balance of a fee equal to the excess of 1/12
of 1.25 percent of the average daily net assets as defined below of the Fund for
such month over any compensation waived by you from time to time (as more fully
described below). You shall be entitled to receive during any month such interim
payments of your fee hereunder as you shall request, provided that no such
payment shall exceed 75 percent of the amount of your fee then accrued on the
books of the Fund and unpaid.



         The "average daily net assets" of the Fund shall mean the average of
the values placed on the Fund's net assets as of 4:00 p.m. (New York time) on
each day on which the net asset value of the Fund is determined consistent with
the provisions of Rule 22c-1 under the 1940 Act or, if the Fund lawfully
determines the value of its net assets as of some other time on each business
day, as of such time. The value of the net assets of the Fund shall always be
determined pursuant to the applicable provisions of the Articles and the
Registration Statement. If the determination of net asset value does not take
place for any particular day, then for the purposes of this section 6, the value
of the net assets of the Fund as last determined shall be deemed to be the value
of its net assets as of 4:00 p.m. (New York time), or as of such other time as
the value of the net assets of the Fund's portfolio may be lawfully determined
on that day. If the Fund determines the value of the net assets of its portfolio
more than once on any day, then the last such determination thereof on that day
shall be deemed to be the sole determination thereof on that day for the
purposes of this section 6.



         You may waive all or a portion of your fees provided for hereunder and
such waiver shall be treated as a reduction in purchase price of your services.
You shall be contractually bound hereunder by the terms of any publicly
announced waiver of your fee, or any limitation of the Fund's expenses, as if
such waiver or limitation were fully set forth herein.



         7. Avoidance of Inconsistent Position; Services Not Exclusive. In
connection with purchases or sales of portfolio securities and other investments
for the account of the Fund, neither you nor any of your directors, officers or
employees shall act as a principal or agent or receive any commission. You or
your agent shall arrange for the placing of all orders for the purchase and sale
of portfolio securities and other investments for the Fund's account with
brokers or dealers selected by you in accordance with Fund policies as expressed
in the Registration Statement. If any occasion should arise in which you give
any advice to clients of yours concerning the Shares of the Fund, you shall act
solely as investment counsel for such clients and not in any way on behalf of
the Fund.



         Your services to the Fund pursuant to this Agreement are not to be
deemed to be exclusive and it is understood that you may render investment
advice, management and services to others. In acting under this Agreement, you
shall be an independent contractor and not an agent of the Corporation. Whenever
the Fund and one or more other accounts or investment companies advised by the
Manager have available funds for investment, investments suitable and
appropriate for each shall be allocated in accordance with procedures believed
by the Manager to be equitable to each entity. Similarly, opportunities to sell
securities shall be allocated in a manner believed by the Manager to be
equitable. 


                                       5
<PAGE>

The Fund recognizes that in some cases this procedure may adversely affect the
size of the position that may be acquired or disposed of for the Fund.



         8. Limitation of Liability of Manager. As an inducement to your
undertaking to render services pursuant to this Agreement, the Corporation
agrees that you shall not be liable under this Agreement for any error of
judgment or mistake of law or for any loss suffered by the Fund in connection
with the matters to which this Agreement relates, provided that nothing in this
Agreement shall be deemed to protect or purport to protect you against any
liability to the Corporation, the Fund or its shareholders to which you would
otherwise be subject by reason of willful misfeasance, bad faith or gross
negligence in the performance of your duties, or by reason of your reckless
disregard of your obligations and duties hereunder. Any person, even though also
employed by you, who may be or become an employee of and paid by the Fund shall
be deemed, when acting within the scope of his or her employment by the Fund, to
be acting in such employment solely for the Fund and not as your employee or
agent.



         9. Duration and Termination of This Agreement. This Agreement shall
remain in force until September 30, 1999, and continue in force from year to
year thereafter, but only so long as such continuance is specifically approved
at least annually (a) by the vote of a majority of the Directors who are not
parties to this Agreement or interested persons of any party to this Agreement,
cast in person at a meeting called for the purpose of voting on such approval,
and (b) by the Directors of the Corporation, or by the vote of a majority of the
outstanding voting securities of the Fund. The aforesaid requirement that
continuance of this Agreement be "specifically approved at least annually" shall
be construed in a manner consistent with the 1940 Act and the rules and
regulations thereunder and any applicable SEC exemptive order therefrom.



         This Agreement may be terminated with respect to the Fund at any time,
without the payment of any penalty, by the vote of a majority of the outstanding
voting securities of the Fund or by the Corporation's Board of Directors on 60
days' written notice to you, or by you on 60 days' written notice to the
Corporation. This Agreement shall terminate automatically in the event of its
assignment.



         10. Amendment of this Agreement. No provision of this Agreement may be
changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party against whom enforcement of the change, waiver,
discharge or termination is sought, and no amendment of this Agreement shall be
effective until approved in a manner consistent with the 1940 Act and rules and
regulations thereunder and any applicable SEC exemptive order therefrom.



         11. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or limit any of the
provisions hereof or otherwise affect their construction or effect. This
Agreement may be executed simultaneously in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.



         In interpreting the provisions of this Agreement, the definitions
contained in Section 2(a) of the 1940 Act (particularly the definitions of
"affiliated person," "assignment" and "majority of the outstanding voting
securities"), as from time to time amended, shall be applied, subject, however,
to such exemptions as may be granted by the SEC by any rule, regulation or
order.


                                       6
<PAGE>


         This Agreement shall be construed in accordance with the laws of the
State of Maryland, provided that nothing herein shall be construed in a manner
inconsistent with the 1940 Act, or in a manner which would cause the Fund to
fail to comply with the requirements of Subchapter M of the Code.



         This Agreement shall supersede all prior investment advisory or
management agreements entered into between you and the Corporation on behalf of
the Fund.



         If you are in agreement with the foregoing, please execute the form of
acceptance on the accompanying counterpart of this letter and return such
counterpart to the Corporation, whereupon this letter shall become a binding
contract effective as of the date of this Agreement.



                                       Yours very truly,

                                       SCUDDER INTERNATIONAL FUND, INC.,

                                       on behalf of

                                       Scudder Emerging Markets Growth Fund




                                       By: /s/Thomas F. McDonough
                                           --------------------------
                                               Vice President


         The foregoing Agreement is hereby accepted as of the date hereof.

                                       SCUDDER KEMPER INVESTMENTS, INC.




                                       By: /s/Daniel Pierce
                                           --------------------

                                                 Managing Director


                                       7

                                                                  Exhibit (d)(6)
                        Scudder International Fund, Inc.
                                 345 Park Avenue
                            New York, New York 10154

                                                               September 7, 1998


Scudder Kemper Investments, Inc.
345 Park Avenue
New York, New York  10154


                         Investment Management Agreement
                  Scudder International Growth and Income Fund

Ladies and Gentlemen:



         Scudder International Fund, Inc. (the "Corporation") has been
established as a Maryland corporation to engage in the business of an investment
company. Pursuant to the Corporation's Articles of Incorporation, as amended
from time-to-time (the "Articles"), the Board of Directors has divided the
Corporation's shares of capital stock, par value $.01 per share, (the "Shares")
into separate series, or funds, including Scudder International Growth and
Income Fund (the "Fund"). Series may be abolished and dissolved, and additional
series established, from time to time by action of the Directors.



         The Corporation, on behalf of the Fund, has selected you to act as the
sole investment manager of the Fund and to provide certain other services, as
more fully set forth below, and you have indicated that you are willing to act
as such investment manager and to perform such services under the terms and
conditions hereinafter set forth. Accordingly, the Corporation on behalf of the
Fund agrees with you as follows:



         1. Delivery of Documents. The Corporation engages in the business of
investing and reinvesting the assets of the Fund in the manner and in accordance
with the investment objectives, policies and restrictions specified in the
currently effective Prospectus (the "Prospectus") and Statement of Additional
Information (the "SAI") relating to the Fund included in the Corporation's
Registration Statement on Form N-1A, as amended from time to time, (the
"Registration Statement") filed by the Corporation under the Investment Company
Act of 1940, as amended, (the "1940 Act") and the Securities Act of 1933, as
amended. Copies of the documents referred to in the preceding sentence have been
furnished to you by the Corporation. The Corporation has also furnished you with
copies properly certified or authenticated of each of the following additional
documents related to the Corporation and the Fund:



(a)  The Articles dated June 23, 1975, as amended to date.



(b)  By-Laws of the Corporation as in effect on the date hereof (the "By-Laws").



(c)  Resolutions of the Directors of the Corporation and the shareholders of the
     Fund selecting you as investment manager and approving the form of this
     Agreement.

<PAGE>


         The Corporation will furnish you from time to time with copies,
properly certified or authenticated, of all amendments of or supplements, if
any, to the foregoing, including the Prospectus, the SAI and the Registration
Statement.


         2. Sublicense to Use the Scudder Trademarks. As exclusive licensee of
the rights to use and sublicense the use of the "Scudder," "Scudder Kemper
Investments, Inc." and "Scudder, Stevens & Clark, Inc." trademarks (together,
the "Scudder Marks"), you hereby grant the Corporation a nonexclusive right and
sublicense to use (i) the "Scudder" name and mark as part of the Corporation's
name (the "Fund Name"), and (ii) the Scudder Marks in connection with the
Corporation's investment products and services, in each case only for so long as
this Agreement, any other investment management agreement between you (or any
organization which shall have succeeded to your business as investment manager
("your Successor")) and the Corporation, or any extension, renewal or amendment
hereof or thereof remains in effect, and only for so long as you are a licensee
of the Scudder Marks, provided however, that you agree to use your best efforts
to maintain your license to use and sublicense the Scudder Marks. The
Corporation agrees that it shall have no right to sublicense or assign rights to
use the Scudder Marks, shall acquire no interest in the Scudder Marks other than
the rights granted herein, that all of the Corporation's uses of the Scudder
Marks shall inure to the benefit of Scudder Trust Company as owner and licensor
of the Scudder Marks (the "Trademark Owner"), and that the Corporation shall not
challenge the validity of the Scudder Marks or the Trademark Owner's ownership
thereof. The Corporation further agrees that all services and products it offers
in connection with the Scudder Marks shall meet commercially reasonable
standards of quality, as may be determined by you or the Trademark Owner from
time to time, provided that you acknowledge that the services and products the
Corporation rendered during the one-year period preceding the date of this
Agreement are acceptable. At your reasonable request, the Corporation shall
cooperate with you and the Trademark Owner and shall execute and deliver any and
all documents necessary to maintain and protect (including but not limited to in
connection with any trademark infringement action) the Scudder Marks and/or
enter the Corporation as a registered user thereof. At such time as this
Agreement or any other investment management agreement shall no longer be in
effect between you (or your Successor) and the Corporation, or you no longer are
a licensee of the Scudder Marks, the Corporation shall (to the extent that, and
as soon as, it lawfully can) cease to use the Fund Name or any other name
indicating that it is advised by, managed by or otherwise connected with you (or
your Successor) or the Trademark Owner. In no event shall the Corporation use
the Scudder Marks or any other name or mark confusingly similar thereto
(including, but not limited to, any name or mark that includes the name
"Scudder") if this Agreement or any other investment advisory agreement between
you (or your Successor) and the Fund is terminated.



         3. Portfolio Management Services. As manager of the assets of the Fund,
you shall provide continuing investment management of the assets of the Fund in
accordance with the investment objectives, policies and restrictions set forth
in the Prospectus and SAI; the applicable provisions of the 1940 Act and the
Internal Revenue Code of 1986, as amended, (the "Code") relating to regulated
investment companies and all rules and regulations thereunder; and all other
applicable federal and state laws and regulations of which you have knowledge;
subject always to policies and instructions adopted by the Corporation's Board
of Directors. In connection therewith, you shall use reasonable efforts to
manage the Fund so that it will qualify as a regulated investment company under
Subchapter M of the Code and regulations issued thereunder. The Fund shall have
the benefit of the investment analysis and research, the review of current
economic conditions and trends and the consideration of long-range investment
policy generally available to your investment advisory clients. In managing the
Fund in accordance with the requirements set forth in this section 3, you shall
be entitled to receive and act upon advice of counsel to the Corporation or
counsel to you. You shall also make available to the Corporation promptly upon
request all of the Fund's investment records and ledgers as are necessary to
assist the 


                                       2
<PAGE>

Corporation in complying with the requirements of the 1940 Act and other
applicable laws. To the extent required by law, you shall furnish to regulatory
authorities having the requisite authority any information or reports in
connection with the services provided pursuant to this Agreement which may be
requested in order to ascertain whether the operations of the Corporation are
being conducted in a manner consistent with applicable laws and regulations.



         You shall determine the securities, instruments, investments,
currencies, repurchase agreements, futures, options and other contracts relating
to investments to be purchased, sold or entered into by the Fund and place
orders with broker-dealers, foreign currency dealers, futures commission
merchants or others pursuant to your determinations and all in accordance with
Fund policies as expressed in the Registration Statement. You shall determine
what portion of the Fund's portfolio shall be invested in securities and other
assets and what portion, if any, should be held uninvested.



         You shall furnish to the Corporation's Board of Directors periodic
reports on the investment performance of the Fund and on the performance of your
obligations pursuant to this Agreement, and you shall supply such additional
reports and information as the Corporation's officers or Board of Directors
shall reasonably request.



         4. Administrative Services. In addition to the portfolio management
services specified above in section 3, you shall furnish at your expense for the
use of the Fund such office space and facilities in the United States as the
Fund may require for its reasonable needs, and you (or one or more of your
affiliates designated by you) shall render to the Corporation administrative
services on behalf of the Fund necessary for operating as an open-end investment
company and not provided by persons not parties to this Agreement including, but
not limited to, preparing reports to and meeting materials for the Corporation's
Board of Directors and reports and notices to Fund shareholders; supervising,
negotiating contractual arrangements with, to the extent appropriate, and
monitoring the performance of, accounting agents, custodians, depositories,
transfer agents and pricing agents, accountants, attorneys, printers,
underwriters, brokers and dealers, insurers and other persons in any capacity
deemed to be necessary or desirable to Fund operations; preparing and making
filings with the Securities and Exchange Commission (the "SEC") and other
regulatory and self-regulatory organizations, including, but not limited to,
preliminary and definitive proxy materials, post-effective amendments to the
Registration Statement, semi-annual reports on Form N-SAR and notices pursuant
to Rule 24f-2 under the 1940 Act; overseeing the tabulation of proxies by the
Fund's transfer agent; assisting in the preparation and filing of the Fund's
federal, state and local tax returns; preparing and filing the Fund's federal
excise tax return pursuant to Section 4982 of the Code; providing assistance
with investor and public relations matters; monitoring the valuation of
portfolio securities and the calculation of net asset value; monitoring the
registration of Shares of the Fund under applicable federal and state securities
laws; maintaining or causing to be maintained for the Fund all books, records
and reports and any other information required under the 1940 Act, to the extent
that such books, records and reports and other information are not maintained by
the Fund's custodian or other agents of the Fund; assisting in establishing the
accounting policies of the Fund; assisting in the resolution of accounting
issues that may arise with respect to the Fund's operations and consulting with
the Fund's independent accountants, legal counsel and the Fund's other agents as
necessary in connection therewith; establishing and monitoring the Fund's
operating expense budgets; reviewing the Fund's bills; processing the payment of
bills that have been approved by an authorized person; assisting the Fund in
determining the amount of dividends and distributions available to be paid by
the Fund to its shareholders, preparing and arranging for the printing of
dividend notices to shareholders, and providing the transfer and dividend paying
agent, the custodian, and the accounting agent with such information as is
required for such parties to effect the payment of dividends and distributions;
and otherwise assisting the Corporation as it may reasonably request in the
conduct of the 


                                       3
<PAGE>

Fund's business, subject to the direction and control of the
Corporation's Board of Directors. Nothing in this Agreement shall be deemed to
shift to you or to diminish the obligations of any agent of the Fund or any
other person not a party to this Agreement which is obligated to provide
services to the Fund.



         5. Allocation of Charges and Expenses. Except as otherwise specifically
provided in this section 5, you shall pay the compensation and expenses of all
Directors, officers and executive employees of the Corporation (including the
Fund's share of payroll taxes) who are affiliated persons of you, and you shall
make available, without expense to the Fund, the services of such of your
directors, officers and employees as may duly be elected officers of the
Corporation, subject to their individual consent to serve and to any limitations
imposed by law. You shall provide at your expense the portfolio management
services described in section 3 hereof and the administrative services described
in section 4 hereof.



         You shall not be required to pay any expenses of the Fund other than
those specifically allocated to you in this section 5. In particular, but
without limiting the generality of the foregoing, you shall not be responsible,
except to the extent of the reasonable compensation of such of the Fund's
Directors and officers as are directors, officers or employees of you whose
services may be involved, for the following expenses of the Fund: organization
expenses of the Fund (including out-of-pocket expenses, but not including your
overhead or employee costs); fees payable to you and to any other Fund advisors
or consultants; legal expenses; auditing and accounting expenses; maintenance of
books and records which are required to be maintained by the Fund's custodian or
other agents of the Corporation; telephone, telex, facsimile, postage and other
communications expenses; taxes and governmental fees; fees, dues and expenses
incurred by the Fund in connection with membership in investment company trade
organizations; fees and expenses of the Fund's accounting agent, custodians,
subcustodians, transfer agents, dividend disbursing agents and registrars;
payment for portfolio pricing or valuation services to pricing agents,
accountants, bankers and other specialists, if any; expenses of preparing share
certificates and, except as provided below in this section 5, other expenses in
connection with the issuance, offering, distribution, sale, redemption or
repurchase of securities issued by the Fund; expenses relating to investor and
public relations; expenses and fees of registering or qualifying Shares of the
Fund for sale; interest charges, bond premiums and other insurance expense;
freight, insurance and other charges in connection with the shipment of the
Fund's portfolio securities; the compensation and all expenses (specifically
including travel expenses relating to Corporation business) of Directors,
officers and employees of the Corporation who are not affiliated persons of you;
brokerage commissions or other costs of acquiring or disposing of any portfolio
securities of the Fund; expenses of printing and distributing reports, notices
and dividends to shareholders; expenses of printing and mailing Prospectuses and
SAIs of the Fund and supplements thereto; costs of stationery; any litigation
expenses; indemnification of Directors and officers of the Corporation; costs of
shareholders' and other meetings; and travel expenses (or an appropriate portion
thereof) of Directors and officers of the Corporation who are directors,
officers or employees of you to the extent that such expenses relate to
attendance at meetings of the Board of Directors of the Corporation or any
committees thereof or advisors thereto held outside of Boston, Massachusetts or
New York, New York.



         You shall not be required to pay expenses of any activity which is
primarily intended to result in sales of Shares of the Fund if and to the extent
that (i) such expenses are required to be borne by a principal underwriter which
acts as the distributor of the Fund's Shares pursuant to an underwriting
agreement which provides that the underwriter shall assume some or all of such
expenses, or (ii) the Corporation on behalf of the Fund shall have adopted a
plan in conformity with Rule 12b-1 under the 1940 Act providing that the Fund
(or some other party) shall assume some or all of such expenses. You shall be
required to pay such of the foregoing sales expenses as are not required to be
paid by the 


                                       4
<PAGE>

principal underwriter pursuant to the underwriting agreement or are
not permitted to be paid by the Fund (or some other party) pursuant to such a
plan.



         6. Management Fee. For all services to be rendered, payments to be made
and costs to be assumed by you as provided in sections 3, 4 and 5 hereof, the
Corporation on behalf of the Fund shall pay you in United States Dollars on the
last day of each month the unpaid balance of a fee equal to the excess of 1/12
of 1 percent of the average daily net assets as defined below of the Fund for
such month over any compensation waived by you from time to time (as more fully
described below). You shall be entitled to receive during any month such interim
payments of your fee hereunder as you shall request, provided that no such
payment shall exceed 75 percent of the amount of your fee then accrued on the
books of the Fund and unpaid.



         The "average daily net assets" of the Fund shall mean the average of
the values placed on the Fund's net assets as of 4:00 p.m. (New York time) on
each day on which the net asset value of the Fund is determined consistent with
the provisions of Rule 22c-1 under the 1940 Act or, if the Fund lawfully
determines the value of its net assets as of some other time on each business
day, as of such time. The value of the net assets of the Fund shall always be
determined pursuant to the applicable provisions of the Articles and the
Registration Statement. If the determination of net asset value does not take
place for any particular day, then for the purposes of this section 6, the value
of the net assets of the Fund as last determined shall be deemed to be the value
of its net assets as of 4:00 p.m. (New York time), or as of such other time as
the value of the net assets of the Fund's portfolio may be lawfully determined
on that day. If the Fund determines the value of the net assets of its portfolio
more than once on any day, then the last such determination thereof on that day
shall be deemed to be the sole determination thereof on that day for the
purposes of this section 6.



         You may waive all or a portion of your fees provided for hereunder and
such waiver shall be treated as a reduction in purchase price of your services.
You shall be contractually bound hereunder by the terms of any publicly
announced waiver of your fee, or any limitation of the Fund's expenses, as if
such waiver or limitation were fully set forth herein.



         7. Avoidance of Inconsistent Position; Services Not Exclusive. In
connection with purchases or sales of portfolio securities and other investments
for the account of the Fund, neither you nor any of your directors, officers or
employees shall act as a principal or agent or receive any commission. You or
your agent shall arrange for the placing of all orders for the purchase and sale
of portfolio securities and other investments for the Fund's account with
brokers or dealers selected by you in accordance with Fund policies as expressed
in the Registration Statement. If any occasion should arise in which you give
any advice to clients of yours concerning the Shares of the Fund, you shall act
solely as investment counsel for such clients and not in any way on behalf of
the Fund.



         Your services to the Fund pursuant to this Agreement are not to be
deemed to be exclusive and it is understood that you may render investment
advice, management and services to others. In acting under this Agreement, you
shall be an independent contractor and not an agent of the Corporation. Whenever
the Fund and one or more other accounts or investment companies advised by the
Manager have available funds for investment, investments suitable and
appropriate for each shall be allocated in accordance with procedures believed
by the Manager to be equitable to each entity. Similarly, opportunities to sell
securities shall be allocated in a manner believed by the Manager to be
equitable. 


                                       5
<PAGE>

The Fund recognizes that in some cases this procedure may adversely
affect the size of the position that may be acquired or disposed of for the
Fund.



         8. Limitation of Liability of Manager. As an inducement to your
undertaking to render services pursuant to this Agreement, the Corporation
agrees that you shall not be liable under this Agreement for any error of
judgment or mistake of law or for any loss suffered by the Fund in connection
with the matters to which this Agreement relates, provided that nothing in this
Agreement shall be deemed to protect or purport to protect you against any
liability to the Corporation, the Fund or its shareholders to which you would
otherwise be subject by reason of willful misfeasance, bad faith or gross
negligence in the performance of your duties, or by reason of your reckless
disregard of your obligations and duties hereunder. Any person, even though also
employed by you, who may be or become an employee of and paid by the Fund shall
be deemed, when acting within the scope of his or her employment by the Fund, to
be acting in such employment solely for the Fund and not as your employee or
agent.



         9. Duration and Termination of This Agreement. This Agreement shall
remain in force until September 30, 1999, and continue in force from year to
year thereafter, but only so long as such continuance is specifically approved
at least annually (a) by the vote of a majority of the Directors who are not
parties to this Agreement or interested persons of any party to this Agreement,
cast in person at a meeting called for the purpose of voting on such approval,
and (b) by the Directors of the Corporation, or by the vote of a majority of the
outstanding voting securities of the Fund. The aforesaid requirement that
continuance of this Agreement be "specifically approved at least annually" shall
be construed in a manner consistent with the 1940 Act and the rules and
regulations thereunder and any applicable SEC exemptive order therefrom.



         This Agreement may be terminated with respect to the Fund at any time,
without the payment of any penalty, by the vote of a majority of the outstanding
voting securities of the Fund or by the Corporation's Board of Directors on 60
days' written notice to you, or by you on 60 days' written notice to the
Corporation. This Agreement shall terminate automatically in the event of its
assignment.



         10. Amendment of this Agreement. No provision of this Agreement may be
changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party against whom enforcement of the change, waiver,
discharge or termination is sought, and no amendment of this Agreement shall be
effective until approved in a manner consistent with the 1940 Act and rules and
regulations thereunder and any applicable SEC exemptive order therefrom.



         11. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or limit any of the
provisions hereof or otherwise affect their construction or effect. This
Agreement may be executed simultaneously in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.



         In interpreting the provisions of this Agreement, the definitions
contained in Section 2(a) of the 1940 Act (particularly the definitions of
"affiliated person," "assignment" and "majority of the outstanding voting
securities"), as from time to time amended, shall be applied, subject, however,
to such exemptions as may be granted by the SEC by any rule, regulation or
order.


                                       6
<PAGE>


         This Agreement shall be construed in accordance with the laws of the
State of Maryland, provided that nothing herein shall be construed in a manner
inconsistent with the 1940 Act, or in a manner which would cause the Fund to
fail to comply with the requirements of Subchapter M of the Code.



         This Agreement shall supersede all prior investment advisory or
management agreements entered into between you and the Corporation on behalf of
the Fund.



         If you are in agreement with the foregoing, please execute the form of
acceptance on the accompanying counterpart of this letter and return such
counterpart to the Corporation, whereupon this letter shall become a binding
contract effective as of the date of this Agreement.



                                  Yours very truly,

                                  SCUDDER INTERNATIONAL FUND, INC.,

                                  on behalf of

                                  Scudder International Growth and Income Fund




                                  By: /s/Thomas F. McDonough
                                      --------------------------
                                          Vice President


         The foregoing Agreement is hereby accepted as of the date hereof.

                                  SCUDDER KEMPER INVESTMENTS, INC.




                                  By: /s/Daniel Pierce
                                      --------------------

                                           Managing Director


                                       7


                                                                  Exhibit (d)(7)

                        Scudder International Fund, Inc.
                                 345 Park Avenue
                            New York, New York 10154

                                                               September 7, 1998

Scudder Kemper Investments, Inc.
345 Park Avenue
New York, New York  10154

                         Investment Management Agreement
                        Scudder International Value Fund

Ladies and Gentlemen:

         Scudder International Fund, Inc. (the "Corporation") has been
established as a Maryland corporation to engage in the business of an investment
company. Pursuant to the Corporation's Articles of Incorporation, as amended
from time-to-time (the "Articles"), the Board of Directors has divided the
Corporation's shares of capital stock, par value $.01 per share, (the "Shares")
into separate series, or funds, including Scudder International Value Fund (the
"Fund"). Series may be abolished and dissolved, and additional series
established, from time to time by action of the Directors.

         The Corporation, on behalf of the Fund, has selected you to act as the
sole investment manager of the Fund and to provide certain other services, as
more fully set forth below, and you have indicated that you are willing to act
as such investment manager and to perform such services under the terms and
conditions hereinafter set forth. Accordingly, the Corporation on behalf of the
Fund agrees with you as follows:

         1. Delivery of Documents. The Corporation engages in the business of
investing and reinvesting the assets of the Fund in the manner and in accordance
with the investment objectives, policies and restrictions specified in the
currently effective Prospectus (the "Prospectus") and Statement of Additional
Information (the "SAI") relating to the Fund included in the Corporation's
Registration Statement on Form N-1A, as amended from time to time, (the
"Registration Statement") filed by the Corporation under the Investment Company
Act of 1940, as amended, (the "1940 Act") and the Securities Act of 1933, as
amended. Copies of the documents referred to in the preceding sentence have been
furnished to you by the Corporation. The Corporation has also furnished you with
copies properly certified or authenticated of each of the following additional
documents related to the Corporation and the Fund:

(a)      The Articles dated June 23, 1975, as amended to date.

(b)      By-Laws  of the  Corporation  as in  effect  on the  date  hereof  (the
         "By-Laws").

(c)      Resolutions of the Directors of the Corporation and the shareholders of
         the Fund selecting you as investment  manager and approving the form of
         this Agreement.

<PAGE>

         The Corporation will furnish you from time to time with copies,
properly certified or authenticated, of all amendments of or supplements, if
any, to the foregoing, including the Prospectus, the SAI and the Registration
Statement.

         2. Sublicense to Use the Scudder Trademarks. As exclusive licensee of
the rights to use and sublicense the use of the "Scudder," "Scudder Kemper
Investments, Inc." and "Scudder, Stevens & Clark, Inc." trademarks (together,
the "Scudder Marks"), you hereby grant the Corporation a nonexclusive right and
sublicense to use (i) the "Scudder" name and mark as part of the Corporation's
name (the "Fund Name"), and (ii) the Scudder Marks in connection with the
Corporation's investment products and services, in each case only for so long as
this Agreement, any other investment management agreement between you (or any
organization which shall have succeeded to your business as investment manager
("your Successor")) and the Corporation, or any extension, renewal or amendment
hereof or thereof remains in effect, and only for so long as you are a licensee
of the Scudder Marks, provided however, that you agree to use your best efforts
to maintain your license to use and sublicense the Scudder Marks. The
Corporation agrees that it shall have no right to sublicense or assign rights to
use the Scudder Marks, shall acquire no interest in the Scudder Marks other than
the rights granted herein, that all of the Corporation's uses of the Scudder
Marks shall inure to the benefit of Scudder Trust Company as owner and licensor
of the Scudder Marks (the "Trademark Owner"), and that the Corporation shall not
challenge the validity of the Scudder Marks or the Trademark Owner's ownership
thereof. The Corporation further agrees that all services and products it offers
in connection with the Scudder Marks shall meet commercially reasonable
standards of quality, as may be determined by you or the Trademark Owner from
time to time, provided that you acknowledge that the services and products the
Corporation rendered during the one-year period preceding the date of this
Agreement are acceptable. At your reasonable request, the Corporation shall
cooperate with you and the Trademark Owner and shall execute and deliver any and
all documents necessary to maintain and protect (including but not limited to in
connection with any trademark infringement action) the Scudder Marks and/or
enter the Corporation as a registered user thereof. At such time as this
Agreement or any other investment management agreement shall no longer be in
effect between you (or your Successor) and the Corporation, or you no longer are
a licensee of the Scudder Marks, the Corporation shall (to the extent that, and
as soon as, it lawfully can) cease to use the Fund Name or any other name
indicating that it is advised by, managed by or otherwise connected with you (or
your Successor) or the Trademark Owner. In no event shall the Corporation use
the Scudder Marks or any other name or mark confusingly similar thereto
(including, but not limited to, any name or mark that includes the name
"Scudder") if this Agreement or any other investment advisory agreement between
you (or your Successor) and the Fund is terminated.

         3. Portfolio Management Services. As manager of the assets of the Fund,
you shall provide continuing investment management of the assets of the Fund in
accordance with the investment objectives, policies and restrictions set forth
in the Prospectus and SAI; the applicable provisions of the 1940 Act and the
Internal Revenue Code of 1986, as amended, (the "Code") relating to regulated
investment companies and all rules and regulations thereunder; and all other
applicable federal and state laws and regulations of which you have knowledge;
subject always to policies and instructions adopted by the Corporation's Board
of Directors. In connection therewith, you shall use reasonable efforts to
manage the Fund so that it will qualify as a regulated investment company under
Subchapter M of the Code and regulations issued thereunder. The Fund shall have
the benefit of the investment analysis and research, the review of current
economic conditions and trends and the consideration of long-range investment
policy generally available to your investment advisory clients. In managing the
Fund in accordance with the requirements set forth in this section 3, you shall
be entitled to receive and act upon advice of counsel to the Corporation or
counsel to you. You shall also make available to the Corporation promptly upon
request all of the Fund's investment records and ledgers as are necessary to
assist the

                                       2
<PAGE>

Corporation in complying with the requirements of the 1940 Act and other
applicable laws. To the extent required by law, you shall furnish to regulatory
authorities having the requisite authority any information or reports in
connection with the services provided pursuant to this Agreement which may be
requested in order to ascertain whether the operations of the Corporation are
being conducted in a manner consistent with applicable laws and regulations.

         You shall determine the securities, instruments, investments,
currencies, repurchase agreements, futures, options and other contracts relating
to investments to be purchased, sold or entered into by the Fund and place
orders with broker-dealers, foreign currency dealers, futures commission
merchants or others pursuant to your determinations and all in accordance with
Fund policies as expressed in the Registration Statement. You shall determine
what portion of the Fund's portfolio shall be invested in securities and other
assets and what portion, if any, should be held uninvested.

         You shall furnish to the Corporation's Board of Directors periodic
reports on the investment performance of the Fund and on the performance of your
obligations pursuant to this Agreement, and you shall supply such additional
reports and information as the Corporation's officers or Board of Directors
shall reasonably request.

         4. Administrative Services. In addition to the portfolio management
services specified above in section 3, you shall furnish at your expense for the
use of the Fund such office space and facilities in the United States as the
Fund may require for its reasonable needs, and you (or one or more of your
affiliates designated by you) shall render to the Corporation administrative
services on behalf of the Fund necessary for operating as an open-end investment
company and not provided by persons not parties to this Agreement including, but
not limited to, preparing reports to and meeting materials for the Corporation's
Board of Directors and reports and notices to Fund shareholders; supervising,
negotiating contractual arrangements with, to the extent appropriate, and
monitoring the performance of, accounting agents, custodians, depositories,
transfer agents and pricing agents, accountants, attorneys, printers,
underwriters, brokers and dealers, insurers and other persons in any capacity
deemed to be necessary or desirable to Fund operations; preparing and making
filings with the Securities and Exchange Commission (the "SEC") and other
regulatory and self-regulatory organizations, including, but not limited to,
preliminary and definitive proxy materials, post-effective amendments to the
Registration Statement, semi-annual reports on Form N-SAR and notices pursuant
to Rule 24f-2 under the 1940 Act; overseeing the tabulation of proxies by the
Fund's transfer agent; assisting in the preparation and filing of the Fund's
federal, state and local tax returns; preparing and filing the Fund's federal
excise tax return pursuant to Section 4982 of the Code; providing assistance
with investor and public relations matters; monitoring the valuation of
portfolio securities and the calculation of net asset value; monitoring the
registration of Shares of the Fund under applicable federal and state securities
laws; maintaining or causing to be maintained for the Fund all books, records
and reports and any other information required under the 1940 Act, to the extent
that such books, records and reports and other information are not maintained by
the Fund's custodian or other agents of the Fund; assisting in establishing the
accounting policies of the Fund; assisting in the resolution of accounting
issues that may arise with respect to the Fund's operations and consulting with
the Fund's independent accountants, legal counsel and the Fund's other agents as
necessary in connection therewith; establishing and monitoring the Fund's
operating expense budgets; reviewing the Fund's bills; processing the payment of
bills that have been approved by an authorized person; assisting the Fund in
determining the amount of dividends and distributions available to be paid by
the Fund to its shareholders, preparing and arranging for the printing of
dividend notices to shareholders, and providing the transfer and dividend paying
agent, the custodian, and the accounting agent with such information as is
required for such parties to effect the payment of dividends and distributions;
and otherwise assisting the Corporation as it may reasonably request in the
conduct of the

                                       3
<PAGE>

Fund's business, subject to the direction and control of the Corporation's Board
of Directors. Nothing in this Agreement shall be deemed to shift to you or to
diminish the obligations of any agent of the Fund or any other person not a
party to this Agreement which is obligated to provide services to the Fund.

         5. Allocation of Charges and Expenses. Except as otherwise specifically
provided in this section 5, you shall pay the compensation and expenses of all
Directors, officers and executive employees of the Corporation (including the
Fund's share of payroll taxes) who are affiliated persons of you, and you shall
make available, without expense to the Fund, the services of such of your
directors, officers and employees as may duly be elected officers of the
Corporation, subject to their individual consent to serve and to any limitations
imposed by law. You shall provide at your expense the portfolio management
services described in section 3 hereof and the administrative services described
in section 4 hereof.

         You shall not be required to pay any expenses of the Fund other than
those specifically allocated to you in this section 5. In particular, but
without limiting the generality of the foregoing, you shall not be responsible,
except to the extent of the reasonable compensation of such of the Fund's
Directors and officers as are directors, officers or employees of you whose
services may be involved, for the following expenses of the Fund: organization
expenses of the Fund (including out-of-pocket expenses, but not including your
overhead or employee costs); fees payable to you and to any other Fund advisors
or consultants; legal expenses; auditing and accounting expenses; maintenance of
books and records which are required to be maintained by the Fund's custodian or
other agents of the Corporation; telephone, telex, facsimile, postage and other
communications expenses; taxes and governmental fees; fees, dues and expenses
incurred by the Fund in connection with membership in investment company trade
organizations; fees and expenses of the Fund's accounting agent, custodians,
subcustodians, transfer agents, dividend disbursing agents and registrars;
payment for portfolio pricing or valuation services to pricing agents,
accountants, bankers and other specialists, if any; expenses of preparing share
certificates and, except as provided below in this section 5, other expenses in
connection with the issuance, offering, distribution, sale, redemption or
repurchase of securities issued by the Fund; expenses relating to investor and
public relations; expenses and fees of registering or qualifying Shares of the
Fund for sale; interest charges, bond premiums and other insurance expense;
freight, insurance and other charges in connection with the shipment of the
Fund's portfolio securities; the compensation and all expenses (specifically
including travel expenses relating to Corporation business) of Directors,
officers and employees of the Corporation who are not affiliated persons of you;
brokerage commissions or other costs of acquiring or disposing of any portfolio
securities of the Fund; expenses of printing and distributing reports, notices
and dividends to shareholders; expenses of printing and mailing Prospectuses and
SAIs of the Fund and supplements thereto; costs of stationery; any litigation
expenses; indemnification of Directors and officers of the Corporation; costs of
shareholders' and other meetings; and travel expenses (or an appropriate portion
thereof) of Directors and officers of the Corporation who are directors,
officers or employees of you to the extent that such expenses relate to
attendance at meetings of the Board of Directors of the Corporation or any
committees thereof or advisors thereto held outside of Boston, Massachusetts or
New York, New York.

         You shall not be required to pay expenses of any activity which is
primarily intended to result in sales of Shares of the Fund if and to the extent
that (i) such expenses are required to be borne by a principal underwriter which
acts as the distributor of the Fund's Shares pursuant to an underwriting
agreement which provides that the underwriter shall assume some or all of such
expenses, or (ii) the Corporation on behalf of the Fund shall have adopted a
plan in conformity with Rule 12b-1 under the 1940 Act providing that the Fund
(or some other party) shall assume some or all of such expenses. You shall be
required to pay such of the foregoing sales expenses as are not required to be
paid by the

                                       4
<PAGE>

principal underwriter pursuant to the underwriting agreement or are not
permitted to be paid by the Fund (or some other party) pursuant to such a plan.

         6. Management Fee. For all services to be rendered, payments to be made
and costs to be assumed by you as provided in sections 3, 4 and 5 hereof, the
Corporation on behalf of the Fund shall pay you in United States Dollars on the
last day of each month the unpaid balance of a fee equal to the excess of 1/12
of 1.00 percent of the average daily net assets as defined below of the Fund for
such month over any compensation waived by you from time to time (as more fully
described below). You shall be entitled to receive during any month such interim
payments of your fee hereunder as you shall request, provided that no such
payment shall exceed 75 percent of the amount of your fee then accrued on the
books of the Fund and unpaid.

         The "average daily net assets" of the Fund shall mean the average of
the values placed on the Fund's net assets as of 4:00 p.m. (New York time) on
each day on which the net asset value of the Fund is determined consistent with
the provisions of Rule 22c-1 under the 1940 Act or, if the Fund lawfully
determines the value of its net assets as of some other time on each business
day, as of such time. The value of the net assets of the Fund shall always be
determined pursuant to the applicable provisions of the Articles and the
Registration Statement. If the determination of net asset value does not take
place for any particular day, then for the purposes of this section 6, the value
of the net assets of the Fund as last determined shall be deemed to be the value
of its net assets as of 4:00 p.m. (New York time), or as of such other time as
the value of the net assets of the Fund's portfolio may be lawfully determined
on that day. If the Fund determines the value of the net assets of its portfolio
more than once on any day, then the last such determination thereof on that day
shall be deemed to be the sole determination thereof on that day for the
purposes of this section 6.

         You may waive all or a portion of your fees provided for hereunder and
such waiver shall be treated as a reduction in purchase price of your services.
You shall be contractually bound hereunder by the terms of any publicly
announced waiver of your fee, or any limitation of the Fund's expenses, as if
such waiver or limitation were fully set forth herein.

         7. Avoidance of Inconsistent Position; Services Not Exclusive. In
connection with purchases or sales of portfolio securities and other investments
for the account of the Fund, neither you nor any of your directors, officers or
employees shall act as a principal or agent or receive any commission. You or
your agent shall arrange for the placing of all orders for the purchase and sale
of portfolio securities and other investments for the Fund's account with
brokers or dealers selected by you in accordance with Fund policies as expressed
in the Registration Statement. If any occasion should arise in which you give
any advice to clients of yours concerning the Shares of the Fund, you shall act
solely as investment counsel for such clients and not in any way on behalf of
the Fund.

         Your services to the Fund pursuant to this Agreement are not to be
deemed to be exclusive and it is understood that you may render investment
advice, management and services to others. In acting under this Agreement, you
shall be an independent contractor and not an agent of the Corporation. Whenever
the Fund and one or more other accounts or investment companies advised by the
Manager have available funds for investment, investments suitable and
appropriate for each shall be allocated in accordance with procedures believed
by the Manager to be equitable to each entity. Similarly, opportunities to sell
securities shall be allocated in a manner believed by the Manager to be
equitable.

                                       5
<PAGE>

The Fund recognizes that in some cases this procedure may adversely affect the
size of the position that may be acquired or disposed of for the Fund.

         8. Limitation of Liability of Manager. As an inducement to your
undertaking to render services pursuant to this Agreement, the Corporation
agrees that you shall not be liable under this Agreement for any error of
judgment or mistake of law or for any loss suffered by the Fund in connection
with the matters to which this Agreement relates, provided that nothing in this
Agreement shall be deemed to protect or purport to protect you against any
liability to the Corporation, the Fund or its shareholders to which you would
otherwise be subject by reason of willful misfeasance, bad faith or gross
negligence in the performance of your duties, or by reason of your reckless
disregard of your obligations and duties hereunder. Any person, even though also
employed by you, who may be or become an employee of and paid by the Fund shall
be deemed, when acting within the scope of his or her employment by the Fund, to
be acting in such employment solely for the Fund and not as your employee or
agent.

         9. Duration and Termination of This Agreement. This Agreement shall
remain in force until September 30, 1999, and continue in force from year to
year thereafter, but only so long as such continuance is specifically approved
at least annually (a) by the vote of a majority of the Directors who are not
parties to this Agreement or interested persons of any party to this Agreement,
cast in person at a meeting called for the purpose of voting on such approval,
and (b) by the Directors of the Corporation, or by the vote of a majority of the
outstanding voting securities of the Fund. The aforesaid requirement that
continuance of this Agreement be "specifically approved at least annually" shall
be construed in a manner consistent with the 1940 Act and the rules and
regulations thereunder and any applicable SEC exemptive order therefrom.

         This Agreement may be terminated with respect to the Fund at any time,
without the payment of any penalty, by the vote of a majority of the outstanding
voting securities of the Fund or by the Corporation's Board of Directors on 60
days' written notice to you, or by you on 60 days' written notice to the
Corporation. This Agreement shall terminate automatically in the event of its
assignment.

         10. Amendment of this Agreement. No provision of this Agreement may be
changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party against whom enforcement of the change, waiver,
discharge or termination is sought, and no amendment of this Agreement shall be
effective until approved in a manner consistent with the 1940 Act and rules and
regulations thereunder and any applicable SEC exemptive order therefrom.

         11. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or limit any of the
provisions hereof or otherwise affect their construction or effect. This
Agreement may be executed simultaneously in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

         In interpreting the provisions of this Agreement, the definitions
contained in Section 2(a) of the 1940 Act (particularly the definitions of
"affiliated person," "assignment" and "majority of the outstanding voting
securities"), as from time to time amended, shall be applied, subject, however,
to such exemptions as may be granted by the SEC by any rule, regulation or
order.

                                       6
<PAGE>

         This Agreement shall be construed in accordance with the laws of the
State of Maryland, provided that nothing herein shall be construed in a manner
inconsistent with the 1940 Act, or in a manner which would cause the Fund to
fail to comply with the requirements of Subchapter M of the Code.

         This Agreement shall supersede all prior investment advisory or
management agreements entered into between you and the Corporation on behalf of
the Fund.

         If you are in agreement with the foregoing, please execute the form of
acceptance on the accompanying counterpart of this letter and return such
counterpart to the Corporation, whereupon this letter shall become a binding
contract effective as of the date of this Agreement.


                                         Yours very truly,

                                         SCUDDER INTERNATIONAL FUND, INC.,
                                         on behalf of

                                         Scudder International Value Fund



                                         By: /s/Thomas F. McDonough
                                             -----------------------------------
                                                Vice President


         The foregoing Agreement is hereby accepted as of the date hereof.

                                           SCUDDER KEMPER INVESTMENTS, INC.



                                           By: /s/Daniel Pierce
                                               ---------------------------------
                                                  Managing Director

                                       7



                                                                  Exhibit (d)(8)

                        Scudder International Fund, Inc.
                                 345 Park Avenue
                            New York, New York 10154

                                                               September 7, 1998

Scudder Kemper Investments, Inc.
345 Park Avenue
New York, New York  10154

                         Investment Management Agreement
                        Scudder International Growth Fund

Ladies and Gentlemen:

         Scudder International Fund, Inc. (the "Corporation") has been
established as a Maryland corporation to engage in the business of an investment
company. Pursuant to the Corporation's Articles of Incorporation, as amended
from time-to-time (the "Articles"), the Board of Directors has divided the
Corporation's shares of capital stock, par value $.01 per share, (the "Shares")
into separate series, or funds, including Scudder International Growth Fund (the
"Fund"). Series may be abolished and dissolved, and additional series
established, from time to time by action of the Directors.

         The Corporation, on behalf of the Fund, has selected you to act as the
sole investment manager of the Fund and to provide certain other services, as
more fully set forth below, and you have indicated that you are willing to act
as such investment manager and to perform such services under the terms and
conditions hereinafter set forth. Accordingly, the Corporation on behalf of the
Fund agrees with you as follows:

         1. Delivery of Documents. The Corporation engages in the business of
investing and reinvesting the assets of the Fund in the manner and in accordance
with the investment objectives, policies and restrictions specified in the
currently effective Prospectus (the "Prospectus") and Statement of Additional
Information (the "SAI") relating to the Fund included in the Corporation's
Registration Statement on Form N-1A, as amended from time to time, (the
"Registration Statement") filed by the Corporation under the Investment Company
Act of 1940, as amended, (the "1940 Act") and the Securities Act of 1933, as
amended. Copies of the documents referred to in the preceding sentence have been
furnished to you by the Corporation. The Corporation has also furnished you with
copies properly certified or authenticated of each of the following additional
documents related to the Corporation and the Fund:

(a)      The Articles dated June 23, 1975, as amended to date.

(b)      By-Laws of the Corporation as in effect on the date hereof (the
         "By-Laws").

(c)      Resolutions of the Directors of the Corporation and the shareholders of
         the Fund selecting you as investment manager and approving the form of
         this Agreement.

<PAGE>

         The Corporation will furnish you from time to time with copies,
properly certified or authenticated, of all amendments of or supplements, if
any, to the foregoing, including the Prospectus, the SAI and the Registration
Statement.

         2. Sublicense to Use the Scudder Trademarks. As exclusive licensee of
the rights to use and sublicense the use of the "Scudder," "Scudder Kemper
Investments, Inc." and "Scudder, Stevens & Clark, Inc." trademarks (together,
the "Scudder Marks"), you hereby grant the Corporation a nonexclusive right and
sublicense to use (i) the "Scudder" name and mark as part of the Corporation's
name (the "Fund Name"), and (ii) the Scudder Marks in connection with the
Corporation's investment products and services, in each case only for so long as
this Agreement, any other investment management agreement between you (or any
organization which shall have succeeded to your business as investment manager
("your Successor")) and the Corporation, or any extension, renewal or amendment
hereof or thereof remains in effect, and only for so long as you are a licensee
of the Scudder Marks, provided however, that you agree to use your best efforts
to maintain your license to use and sublicense the Scudder Marks. The
Corporation agrees that it shall have no right to sublicense or assign rights to
use the Scudder Marks, shall acquire no interest in the Scudder Marks other than
the rights granted herein, that all of the Corporation's uses of the Scudder
Marks shall inure to the benefit of Scudder Trust Company as owner and licensor
of the Scudder Marks (the "Trademark Owner"), and that the Corporation shall not
challenge the validity of the Scudder Marks or the Trademark Owner's ownership
thereof. The Corporation further agrees that all services and products it offers
in connection with the Scudder Marks shall meet commercially reasonable
standards of quality, as may be determined by you or the Trademark Owner from
time to time, provided that you acknowledge that the services and products the
Corporation rendered during the one-year period preceding the date of this
Agreement are acceptable. At your reasonable request, the Corporation shall
cooperate with you and the Trademark Owner and shall execute and deliver any and
all documents necessary to maintain and protect (including but not limited to in
connection with any trademark infringement action) the Scudder Marks and/or
enter the Corporation as a registered user thereof. At such time as this
Agreement or any other investment management agreement shall no longer be in
effect between you (or your Successor) and the Corporation, or you no longer are
a licensee of the Scudder Marks, the Corporation shall (to the extent that, and
as soon as, it lawfully can) cease to use the Fund Name or any other name
indicating that it is advised by, managed by or otherwise connected with you (or
your Successor) or the Trademark Owner. In no event shall the Corporation use
the Scudder Marks or any other name or mark confusingly similar thereto
(including, but not limited to, any name or mark that includes the name
"Scudder") if this Agreement or any other investment advisory agreement between
you (or your Successor) and the Fund is terminated.

         3. Portfolio Management Services. As manager of the assets of the Fund,
you shall provide continuing investment management of the assets of the Fund in
accordance with the investment objectives, policies and restrictions set forth
in the Prospectus and SAI; the applicable provisions of the 1940 Act and the
Internal Revenue Code of 1986, as amended, (the "Code") relating to regulated
investment companies and all rules and regulations thereunder; and all other
applicable federal and state laws and regulations of which you have knowledge;
subject always to policies and instructions adopted by the Corporation's Board
of Directors. In connection therewith, you shall use reasonable efforts to
manage the Fund so that it will qualify as a regulated investment company under
Subchapter M of the Code and regulations issued thereunder. The Fund shall have
the benefit of the investment analysis and research, the review of current
economic conditions and trends and the consideration of long-range investment
policy generally available to your investment advisory clients. In managing the
Fund in accordance with the requirements set forth in this section 3, you shall
be entitled to receive and act upon advice of counsel to the Corporation or
counsel to you. You shall also make available to the Corporation promptly upon
request all of the Fund's investment records and ledgers as are necessary to
assist the

                                       2
<PAGE>

Corporation in complying with the requirements of the 1940 Act and other
applicable laws. To the extent required by law, you shall furnish to regulatory
authorities having the requisite authority any information or reports in
connection with the services provided pursuant to this Agreement which may be
requested in order to ascertain whether the operations of the Corporation are
being conducted in a manner consistent with applicable laws and regulations.

         You shall determine the securities, instruments, investments,
currencies, repurchase agreements, futures, options and other contracts relating
to investments to be purchased, sold or entered into by the Fund and place
orders with broker-dealers, foreign currency dealers, futures commission
merchants or others pursuant to your determinations and all in accordance with
Fund policies as expressed in the Registration Statement. You shall determine
what portion of the Fund's portfolio shall be invested in securities and other
assets and what portion, if any, should be held uninvested.

         You shall furnish to the Corporation's Board of Directors periodic
reports on the investment performance of the Fund and on the performance of your
obligations pursuant to this Agreement, and you shall supply such additional
reports and information as the Corporation's officers or Board of Directors
shall reasonably request.

         4. Administrative Services. In addition to the portfolio management
services specified above in section 3, you shall furnish at your expense for the
use of the Fund such office space and facilities in the United States as the
Fund may require for its reasonable needs, and you (or one or more of your
affiliates designated by you) shall render to the Corporation administrative
services on behalf of the Fund necessary for operating as an open-end investment
company and not provided by persons not parties to this Agreement including, but
not limited to, preparing reports to and meeting materials for the Corporation's
Board of Directors and reports and notices to Fund shareholders; supervising,
negotiating contractual arrangements with, to the extent appropriate, and
monitoring the performance of, accounting agents, custodians, depositories,
transfer agents and pricing agents, accountants, attorneys, printers,
underwriters, brokers and dealers, insurers and other persons in any capacity
deemed to be necessary or desirable to Fund operations; preparing and making
filings with the Securities and Exchange Commission (the "SEC") and other
regulatory and self-regulatory organizations, including, but not limited to,
preliminary and definitive proxy materials, post-effective amendments to the
Registration Statement, semi-annual reports on Form N-SAR and notices pursuant
to Rule 24f-2 under the 1940 Act; overseeing the tabulation of proxies by the
Fund's transfer agent; assisting in the preparation and filing of the Fund's
federal, state and local tax returns; preparing and filing the Fund's federal
excise tax return pursuant to Section 4982 of the Code; providing assistance
with investor and public relations matters; monitoring the valuation of
portfolio securities and the calculation of net asset value; monitoring the
registration of Shares of the Fund under applicable federal and state securities
laws; maintaining or causing to be maintained for the Fund all books, records
and reports and any other information required under the 1940 Act, to the extent
that such books, records and reports and other information are not maintained by
the Fund's custodian or other agents of the Fund; assisting in establishing the
accounting policies of the Fund; assisting in the resolution of accounting
issues that may arise with respect to the Fund's operations and consulting with
the Fund's independent accountants, legal counsel and the Fund's other agents as
necessary in connection therewith; establishing and monitoring the Fund's
operating expense budgets; reviewing the Fund's bills; processing the payment of
bills that have been approved by an authorized person; assisting the Fund in
determining the amount of dividends and distributions available to be paid by
the Fund to its shareholders, preparing and arranging for the printing of
dividend notices to shareholders, and providing the transfer and dividend paying
agent, the custodian, and the accounting agent with such information as is
required for such parties to effect the payment of dividends and distributions;
and otherwise assisting the Corporation as it may reasonably request in the
conduct of the

                                       3
<PAGE>

Fund's business, subject to the direction and control of the Corporation's Board
of Directors. Nothing in this Agreement shall be deemed to shift to you or to
diminish the obligations of any agent of the Fund or any other person not a
party to this Agreement which is obligated to provide services to the Fund.

         5. Allocation of Charges and Expenses. Except as otherwise specifically
provided in this section 5, you shall pay the compensation and expenses of all
Directors, officers and executive employees of the Corporation (including the
Fund's share of payroll taxes) who are affiliated persons of you, and you shall
make available, without expense to the Fund, the services of such of your
directors, officers and employees as may duly be elected officers of the
Corporation, subject to their individual consent to serve and to any limitations
imposed by law. You shall provide at your expense the portfolio management
services described in section 3 hereof and the administrative services described
in section 4 hereof.

         You shall not be required to pay any expenses of the Fund other than
those specifically allocated to you in this section 5. In particular, but
without limiting the generality of the foregoing, you shall not be responsible,
except to the extent of the reasonable compensation of such of the Fund's
Directors and officers as are directors, officers or employees of you whose
services may be involved, for the following expenses of the Fund: organization
expenses of the Fund (including out-of-pocket expenses, but not including your
overhead or employee costs); fees payable to you and to any other Fund advisors
or consultants; legal expenses; auditing and accounting expenses; maintenance of
books and records which are required to be maintained by the Fund's custodian or
other agents of the Corporation; telephone, telex, facsimile, postage and other
communications expenses; taxes and governmental fees; fees, dues and expenses
incurred by the Fund in connection with membership in investment company trade
organizations; fees and expenses of the Fund's accounting agent, custodians,
subcustodians, transfer agents, dividend disbursing agents and registrars;
payment for portfolio pricing or valuation services to pricing agents,
accountants, bankers and other specialists, if any; expenses of preparing share
certificates and, except as provided below in this section 5, other expenses in
connection with the issuance, offering, distribution, sale, redemption or
repurchase of securities issued by the Fund; expenses relating to investor and
public relations; expenses and fees of registering or qualifying Shares of the
Fund for sale; interest charges, bond premiums and other insurance expense;
freight, insurance and other charges in connection with the shipment of the
Fund's portfolio securities; the compensation and all expenses (specifically
including travel expenses relating to Corporation business) of Directors,
officers and employees of the Corporation who are not affiliated persons of you;
brokerage commissions or other costs of acquiring or disposing of any portfolio
securities of the Fund; expenses of printing and distributing reports, notices
and dividends to shareholders; expenses of printing and mailing Prospectuses and
SAIs of the Fund and supplements thereto; costs of stationery; any litigation
expenses; indemnification of Directors and officers of the Corporation; costs of
shareholders' and other meetings; and travel expenses (or an appropriate portion
thereof) of Directors and officers of the Corporation who are directors,
officers or employees of you to the extent that such expenses relate to
attendance at meetings of the Board of Directors of the Corporation or any
committees thereof or advisors thereto held outside of Boston, Massachusetts or
New York, New York.

         You shall not be required to pay expenses of any activity which is
primarily intended to result in sales of Shares of the Fund if and to the extent
that (i) such expenses are required to be borne by a principal underwriter which
acts as the distributor of the Fund's Shares pursuant to an underwriting
agreement which provides that the underwriter shall assume some or all of such
expenses, or (ii) the Corporation on behalf of the Fund shall have adopted a
plan in conformity with Rule 12b-1 under the 1940 Act providing that the Fund
(or some other party) shall assume some or all of such expenses. You shall be
required to pay such of the foregoing sales expenses as are not required to be
paid by the

                                       4
<PAGE>

principal underwriter pursuant to the underwriting agreement or are not
permitted to be paid by the Fund (or some other party) pursuant to such a plan.

         6. Management Fee. For all services to be rendered, payments to be made
and costs to be assumed by you as provided in sections 3, 4 and 5 hereof, the
Corporation on behalf of the Fund shall pay you in United States Dollars on the
last day of each month the unpaid balance of a fee equal to the excess of 1/12
of 1.00 percent of the average daily net assets as defined below of the Fund for
such month over any compensation waived by you from time to time (as more fully
described below). You shall be entitled to receive during any month such interim
payments of your fee hereunder as you shall request, provided that no such
payment shall exceed 75 percent of the amount of your fee then accrued on the
books of the Fund and unpaid.

         The "average daily net assets" of the Fund shall mean the average of
the values placed on the Fund's net assets as of 4:00 p.m. (New York time) on
each day on which the net asset value of the Fund is determined consistent with
the provisions of Rule 22c-1 under the 1940 Act or, if the Fund lawfully
determines the value of its net assets as of some other time on each business
day, as of such time. The value of the net assets of the Fund shall always be
determined pursuant to the applicable provisions of the Articles and the
Registration Statement. If the determination of net asset value does not take
place for any particular day, then for the purposes of this section 6, the value
of the net assets of the Fund as last determined shall be deemed to be the value
of its net assets as of 4:00 p.m. (New York time), or as of such other time as
the value of the net assets of the Fund's portfolio may be lawfully determined
on that day. If the Fund determines the value of the net assets of its portfolio
more than once on any day, then the last such determination thereof on that day
shall be deemed to be the sole determination thereof on that day for the
purposes of this section 6.

         You may waive all or a portion of your fees provided for hereunder and
such waiver shall be treated as a reduction in purchase price of your services.
You shall be contractually bound hereunder by the terms of any publicly
announced waiver of your fee, or any limitation of the Fund's expenses, as if
such waiver or limitation were fully set forth herein.

         7. Avoidance of Inconsistent Position; Services Not Exclusive. In
connection with purchases or sales of portfolio securities and other investments
for the account of the Fund, neither you nor any of your directors, officers or
employees shall act as a principal or agent or receive any commission. You or
your agent shall arrange for the placing of all orders for the purchase and sale
of portfolio securities and other investments for the Fund's account with
brokers or dealers selected by you in accordance with Fund policies as expressed
in the Registration Statement. If any occasion should arise in which you give
any advice to clients of yours concerning the Shares of the Fund, you shall act
solely as investment counsel for such clients and not in any way on behalf of
the Fund.

         Your services to the Fund pursuant to this Agreement are not to be
deemed to be exclusive and it is understood that you may render investment
advice, management and services to others. In acting under this Agreement, you
shall be an independent contractor and not an agent of the Corporation. Whenever
the Fund and one or more other accounts or investment companies advised by the
Manager have available funds for investment, investments suitable and
appropriate for each shall be allocated in accordance with procedures believed
by the Manager to be equitable to each entity. Similarly, opportunities to sell
securities shall be allocated in a manner believed by the Manager to be
equitable.

                                       5
<PAGE>

The Fund recognizes that in some cases this procedure may adversely affect the
size of the position that may be acquired or disposed of for the Fund.

         8. Limitation of Liability of Manager. As an inducement to your
undertaking to render services pursuant to this Agreement, the Corporation
agrees that you shall not be liable under this Agreement for any error of
judgment or mistake of law or for any loss suffered by the Fund in connection
with the matters to which this Agreement relates, provided that nothing in this
Agreement shall be deemed to protect or purport to protect you against any
liability to the Corporation, the Fund or its shareholders to which you would
otherwise be subject by reason of willful misfeasance, bad faith or gross
negligence in the performance of your duties, or by reason of your reckless
disregard of your obligations and duties hereunder. Any person, even though also
employed by you, who may be or become an employee of and paid by the Fund shall
be deemed, when acting within the scope of his or her employment by the Fund, to
be acting in such employment solely for the Fund and not as your employee or
agent.

         9. Duration and Termination of This Agreement. This Agreement shall
remain in force until September 30, 1999, and continue in force from year to
year thereafter, but only so long as such continuance is specifically approved
at least annually (a) by the vote of a majority of the Directors who are not
parties to this Agreement or interested persons of any party to this Agreement,
cast in person at a meeting called for the purpose of voting on such approval,
and (b) by the Directors of the Corporation, or by the vote of a majority of the
outstanding voting securities of the Fund. The aforesaid requirement that
continuance of this Agreement be "specifically approved at least annually" shall
be construed in a manner consistent with the 1940 Act and the rules and
regulations thereunder and any applicable SEC exemptive order therefrom.

         This Agreement may be terminated with respect to the Fund at any time,
without the payment of any penalty, by the vote of a majority of the outstanding
voting securities of the Fund or by the Corporation's Board of Directors on 60
days' written notice to you, or by you on 60 days' written notice to the
Corporation. This Agreement shall terminate automatically in the event of its
assignment.

         10. Amendment of this Agreement. No provision of this Agreement may be
changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party against whom enforcement of the change, waiver,
discharge or termination is sought, and no amendment of this Agreement shall be
effective until approved in a manner consistent with the 1940 Act and rules and
regulations thereunder and any applicable SEC exemptive order therefrom.

         11. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or limit any of the
provisions hereof or otherwise affect their construction or effect. This
Agreement may be executed simultaneously in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

         In interpreting the provisions of this Agreement, the definitions
contained in Section 2(a) of the 1940 Act (particularly the definitions of
"affiliated person," "assignment" and "majority of the outstanding voting
securities"), as from time to time amended, shall be applied, subject, however,
to such exemptions as may be granted by the SEC by any rule, regulation or
order.

                                       6
<PAGE>

         This Agreement shall be construed in accordance with the laws of the
State of Maryland, provided that nothing herein shall be construed in a manner
inconsistent with the 1940 Act, or in a manner which would cause the Fund to
fail to comply with the requirements of Subchapter M of the Code.

         This Agreement shall supersede all prior investment advisory or
management agreements entered into between you and the Corporation on behalf of
the Fund.

         If you are in agreement with the foregoing, please execute the form of
acceptance on the accompanying counterpart of this letter and return such
counterpart to the Corporation, whereupon this letter shall become a binding
contract effective as of the date of this Agreement.

                                             Yours very truly,

                                             SCUDDER INTERNATIONAL FUND, INC.,
                                             on behalf of

                                             Scudder International Growth Fund



                                             By: /s/Thomas F. McDonough
                                                 -------------------------------
                                                    Vice President

         The foregoing Agreement is hereby accepted as of the date hereof.

                                             SCUDDER KEMPER INVESTMENTS, INC.



                                             By: /s/Daniel Pierce
                                                 -------------------------------
                                                    Managing Director

                                       7



                                                                  Exhibit (e)(1)

                        SCUDDER INTERNATIONAL FUND, INC.
                                 345 Park Avenue
                            New York, New York 10154

                                                              September 7, 1998

Scudder Investor Services, Inc.
Two International Place
Boston, Massachusetts  02110

                             Underwriting Agreement
                             ----------------------

Dear Ladies and Gentlemen:

         Scudder International Fund, Inc. (hereinafter called the "Fund") is a
Corporation organized under the laws of Maryland and is engaged in the business
of an investment company. The authorized capital of the Fund consists of shares
of capital stock, with par value of $0.01 per share ("Shares"), currently
divided into eight active series (each a "Series"). The Series and, if
applicable, the classes thereof to which this Agreement applies are included
under Schedule A. Shares may be divided into additional Series of the Fund and
the Series may be terminated from time to time. The Fund has selected you to act
as principal underwriter (as such term is defined in Section 2(a)(29) of the
Investment Company Act of 1940, as amended (the "1940 Act")) of the Shares and
you are willing to act as such principal underwriter and to perform the duties
and functions of underwriter in the manner and on the terms and conditions
hereinafter set forth. Accordingly, the Fund hereby agrees with you as follows:

         1. Delivery of Documents. The Fund has furnished you with copies
properly certified or authenticated of each of the following:

         (a)      Articles of Amendment and Restatement of the Fund, dated
                  February 21, 1991, as amended to date.

         (b)      By-Laws of the Fund as in effect on the date hereof.

<PAGE>

         (c)      Resolutions of the Board of Directors of the Fund selecting
                  you as principal underwriter and approving this form of
                  Agreement.

         The Fund will furnish you from time to time with copies, properly
certified or authenticated, of all amendments of or supplements to the
foregoing, if any.

         The Fund will furnish you promptly with properly certified or
authenticated copies of any registration statement filed by it with the
Securities and Exchange Commission under the Securities Act of 1933, as amended,
(the "1933 Act") or the 1940 Act, together with any financial statements and
exhibits included therein, and all amendments or supplements thereto hereafter
filed.

         2. Registration and Sale of Additional Shares. The Fund will from time
to time use its best efforts to register under the 1933 Act such number of
Shares not already so registered as you may reasonably be expected to sell on
behalf of the Fund. You and the Fund will cooperate in taking such action as may
be necessary from time to time to comply with requirements applicable to the
sale of Shares by you or the Fund in any states mutually agreeable to you and
the Fund, and to maintain such compliance. This Agreement relates to the issue
and sale of Shares that are duly authorized and registered under the 1933 Act
and available for sale by the Fund, including redeemed or repurchased Shares if
and to the extent that they may be legally sold and if, but only if, the Fund
sees fit to sell them.

         3. Sale of Shares. Subject to the provisions of paragraphs 5 and 7
hereof and to such minimum purchase requirements as may from time to time be
currently indicated in the Fund's prospectus or statement of additional
information, you are authorized to sell as agent on behalf of the Fund Shares
authorized for issue and registered under the 1933 Act. You may also purchase as
principal Shares for resale to the public. Such sales will be made by you on
behalf of the Fund by accepting unconditional orders to purchase Shares placed
with you by investors and such purchases will be made by you only after
acceptance by you of such orders. The sales price to the public of Shares shall
be the public offering price as defined in paragraph 6 hereof.

         4. Solicitation of Orders. You will use your best efforts (but only in
states in which you may lawfully do so) to obtain from investors unconditional
orders for Shares authorized for issue by

                                       2
<PAGE>

the Funds and registered under the 1933 Act, provided that you may in your
discretion refuse to accept orders for Shares from any particular applicant.

         5. Sale of Shares by the Fund. Unless you are otherwise notified by the
Fund, any right granted to you to accept orders for Shares or to make sales on
behalf of the Fund or to purchase Shares for resale will not apply to (i) Shares
issued in connection with the merger or consolidation of any other investment
company with the Fund or its acquisition, by purchase or otherwise, of all or
substantially all of the assets of any investment company or substantially all
the outstanding shares of any such company, and (ii) to Shares that may be
offered by the Fund to shareholders of the Fund by virtue of their being such
shareholders.

         6. Public Offering Price. All Shares sold to investors by you will be
sold at the public offering price. The public offering price for all accepted
subscriptions will be the net asset value per Share, determined, in the manner
provided in the Fund's registration statements as from time to time in effect
under the 1933 Act and the 1940 Act, next after the order is accepted by you.

         7. Suspension of Sales. If and whenever the determination of net asset
value is suspended and until such suspension is terminated, no further orders
for Shares shall be accepted by you except unconditional orders placed with you
before you had knowledge of the suspension. In addition, the Fund reserves the
right to suspend sales and your authority to accept orders for Shares on behalf
of the Fund if, in the judgment of a majority of the Board of Directors or a
majority of the Executive Committee of such Board, if such body exists, it is in
the best interests of the Fund to do so, such suspension to continue for such
period as may be determined by such majority; and in that event, no Shares will
be sold by you on behalf of the Fund while such suspension remains in effect
except for Shares necessary to cover unconditional orders accepted by you before
you had knowledge of the suspension.

         8. Portfolio Securities. Portfolio securities of any Series of the Fund
may be bought or sold by or through you and you may participate directly or
indirectly in brokerage commissions or "spread" in respect of transactions in
portfolio securities of any Series of the Fund; provided, however, that all sums
of money received by you as a result of such purchases and sales or as a result

                                       3
<PAGE>

of such participation must, after reimbursement of your actual expenses in
connection with such activity, be paid over by you to or for the benefit of the
Fund.

         9. Expenses. (a) The Fund will pay (or will enter into arrangements
providing that others than you will pay) all fees and expenses:

         (1)      in connection with the preparation, setting in type and filing
                  of any registration statement (including a prospectus and
                  statement of additional information) under the 1933 Act or the
                  1940 Act, or both, and any amendments or supplements thereto
                  that may be made from time to time;

         (2)      in connection with the registration and qualification of
                  Shares for sale, or compliance with other conditions
                  applicable to the sale of Shares in the various jurisdictions
                  in which the Fund shall determine it advisable to sell such
                  Shares (including registering the Fund as a broker or dealer
                  or any officer of the Fund or other person as agent or
                  salesman of the Fund in any such jurisdictions);

         (3)      of preparing, setting in type, printing and mailing any
                  notice, proxy statement, report, prospectus or other
                  communication to shareholders of the Fund in their capacity as
                  such;

         (4)      of preparing, setting in type, printing and mailing
                  prospectuses annually, and any supplements thereto, to
                  existing shareholders;

         (5)      in connection with the issue and transfer of Shares resulting
                  from the acceptance by you of orders to purchase Shares placed
                  with you by investors, including the expenses of printing and
                  mailing confirmations of such purchase orders and the expenses
                  of printing and mailing a prospectus included with the
                  confirmation of such orders;

         (6)      of any issue taxes or any initial transfer taxes;

         (7)      of WATS (or equivalent) telephone lines other than the portion
                  allocated to you in this paragraph 9;

                                       4
<PAGE>

         (8)      of wiring funds in payment of Share purchases or in
                  satisfaction of redemption or repurchase requests, unless such
                  expenses are paid for by the investor or shareholder who
                  initiates the transaction;

         (9)      of the cost of printing and postage of business reply
                  envelopes sent to Fund shareholders;

         (10)     of one or more CRT terminals connected with the computer
                  facilities of the transfer agent other than the portion
                  allocated to you in this paragraph 9;

         (11)     permitted to be paid or assumed by the Fund pursuant to a plan
                  ("12b-1 Plan"), if any, adopted by the Fund in conformity with
                  the requirements of Rule 12b-1 under the 1940 Act ("Rule
                  12b-1") or any successor rule, notwithstanding any other
                  provision to the contrary herein;

         (12)     of the expense of setting in type, printing and postage of the
                  periodic newsletter to shareholders other than the portion
                  allocated to you in this paragraph 9; and

         (13)     of the salaries and overhead of persons employed by you as
                  shareholder representatives other than the portion allocated
                  to you in this paragraph 9.

         b)       You shall pay or arrange for the payment of all fees and
                  expenses:

         (1)      of printing and distributing any prospectuses or reports
                  prepared for your use in connection with the offering of
                  Shares to the public;

         (2)      of preparing, setting in type, printing and mailing any other
                  literature used by you in connection with the offering of
                  Shares to the public;

         (3)      of advertising in connection with the offering of Shares to
                  the public;

         (4)      incurred in connection with your registration as a broker or
                  dealer or the registration or qualification of your officers,
                  directors, agents or representatives under Federal and state
                  laws;

         (5)      of that portion of WATS (or equivalent) telephone lines,
                  allocated to you on the basis of use by investors (but not
                  shareholders) who request information or prospectuses;

                                       5
<PAGE>

         (6)      of that portion of the expenses of setting in type, printing
                  and postage of the periodic newsletter to shareholders
                  attributable to promotional material included in such
                  newsletter at your request concerning investment companies
                  other than the Fund or concerning the Fund to the extent you
                  are required to assume the expense thereof pursuant to
                  paragraph 9(b)(8), except such material which is limited to
                  information, such as listings of other investment companies
                  and their investment objectives, given in connection with the
                  exchange privilege as from time to time described in the
                  Fund's prospectus;

         (7)      of that portion of the salaries and overhead of persons
                  employed by you as shareholder representatives attributable to
                  the time spent by such persons in responding to requests from
                  prospective investors and shareholders for information about
                  the Fund;

         (8)      of any activity which is primarily intended to result in the
                  sale of Shares, unless a 12b-1 Plan shall be in effect which
                  provides that the Fund shall bear some or all of such
                  expenses, in which case the Fund shall bear such expenses in
                  accordance with such Plan; and

         (9)      of that portion of one or more CRT terminals connected with
                  the computer facilities of the transfer agent attributable to
                  your use of such terminal(s) to gain access to such of the
                  transfer agent's records as also serve as your records.

         Expenses which are to be allocated between you and the Fund shall be
allocated pursuant to reasonable procedures or formulae mutually agreed upon
from time to time, which procedures or formulae shall to the extent practicable
reflect studies of relevant empirical data.

         10. Conformity with Law. You agree that in selling Shares you will duly
conform in all respects with the laws of the United States and any state in
which Shares may be offered for sale by you pursuant to this Agreement and to
the rules and regulations of the National Association of Securities Dealers,
Inc., of which you are a member.

         11. Independent Contractor. You shall be an independent contractor and
neither you nor any of your officers or employees is or shall be an employee of
the Fund in the performance of your

                                       6
<PAGE>

duties hereunder. You shall be responsible for your own conduct and the
employment, control and conduct of your agents and employees and for injury to
such agents or employees or to others through your agents or employees. You
assume full responsibility for your agents and employees under applicable
statutes and agree to pay all employee taxes thereunder.

         12. Indemnification. You agree to indemnify and hold harmless the Fund
and each of its Director and officers and each person, if any, who controls the
Fund within the meaning of Section 15 of the 1933 Act, against any and all
losses, claims, damages, liabilities or litigation (including legal and other
expenses) to which the Fund or such Directors, officers, or controlling person
may become subject under such Act, under any other statute, at common law or
otherwise, arising out of the acquisition of any Shares by any person which (i)
may be based upon any wrongful act by you or any of your employees or
representatives, or (ii) may be based upon any untrue statement or alleged
untrue statement of a material fact contained in a registration statement
(including a prospectus or statement of additional information) covering Shares
or any amendment thereof or supplement thereto or the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statement therein not misleading if such statement or
omission was made in reliance upon information furnished to the Fund by you, or
(iii) may be incurred or arise by reason of your acting as the Fund's agent
instead of purchasing and reselling Shares as principal in distributing the
Shares to the public, provided, however, that in no case (i) is your indemnity
in favor of a Director or officer or any other person deemed to protect such
Director or officer or other person against any liability to which any such
person would otherwise be subject by reason of willful misfeasance, bad faith,
or gross negligence in the performance of his duties or by reason of his
reckless disregard of obligations and duties under this Agreement or (ii) are
you to be liable under your indemnity agreement contained in this paragraph with
respect to any claim made against the Fund or any person indemnified unless the
Fund or such person, as the case may be, shall have notified you in writing
within a reasonable time after the summons or other first legal process giving
information of the nature of the claims shall have been served upon the Fund or
upon such person (or after the Fund or such person shall have received notice of
such service on any designated agent), but

                                       7
<PAGE>

failure to notify you of any such claim shall not relieve you from any liability
which you may have to the Fund or any person against whom such action is brought
otherwise than on account of your indemnity agreement contained in this
paragraph. You shall be entitled to participate, at your own expense, in the
defense, or, if you so elect, to assume the defense of any suit brought to
enforce any such liability, but if you elect to assume the defense, such defense
shall be conducted by counsel chosen by you and satisfactory to the Fund, to its
officers and Directors, or to any controlling person or persons, defendant or
defendants in the suit. In the event that you elect to assume the defense of any
such suit and retain such counsel, the Fund, such officers and Directors or
controlling person or persons, defendant or defendants in the suit shall bear
the fees and expenses of any additional counsel retained by them, but, in case
you do not elect to assume the defense of any such suit, you will reimburse the
Fund, such officers and Directors or controlling person or persons, defendant or
defendants in such suit for the reasonable fees and expenses of any counsel
retained by them. You agree promptly to notify the Fund of the commencement of
any litigation or proceedings against it in connection with the issue and sale
of any Shares.

         The Fund agrees to indemnify and hold harmless you and each of your
directors and officers and each person, if any, who controls you within the
meaning of Section 15 of the 1933 Act, against any and all losses, claims,
damages, liabilities or litigation (including legal and other expenses) to which
you or such directors, officers or controlling person may become subject under
such Act, under any other statute, at common law or otherwise, arising out of
the acquisition of any Shares by any person which (i) may be based upon any
wrongful act by the Fund or any of its employees or representatives, or (ii) may
be based upon any untrue statement or alleged untrue statement of a material
fact contained in a registration statement (including a prospectus or statement
of additional information) covering Shares or any amendment thereof or
supplement thereto or the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading if such statement or omission was made in reliance upon
information furnished to you by the Fund; provided, however, that in no case (i)
is the Fund's indemnity in favor of you, a director or officer or any other
person deemed to protect you, such

                                       8
<PAGE>

director or officer or other person against any liability to which any such
person would otherwise be subject by reason of willful misfeasance, bad faith,
or gross negligence in the performance of his duties or by reason of his
reckless disregard of obligations and duties under this Agreement or (ii) is the
Fund to be liable under its indemnity agreement contained in this paragraph with
respect to any claims made against you or any such director, officer or
controlling person unless you or such director, officer or controlling person,
as the case may be, shall have notified the Fund in writing within a reasonable
time after the summons or other first legal process giving information of the
nature of the claim shall have been served upon you or upon such director,
officer or controlling person (or after you or such director, officer or
controlling person shall have received notice of such service on any designated
agent), but failure to notify the Fund of any such claim shall not relieve it
from any liability which it may have to the person against whom such action is
brought otherwise than on account of its indemnity agreement contained in this
paragraph. The Fund will be entitled to participate at its own expense in the
defense, or, if it so elects, to assume the defense of any suit brought to
enforce any such liability, but if the Fund elects to assume the defense, such
defense shall be conducted by counsel chosen by it and satisfactory to you, your
directors, officers, or controlling person or persons, defendant or defendants
in the suit. In the event that the Fund elects to assume the defense of any such
suit and retain such counsel, you, your directors, officers or controlling
person or persons, defendant or defendants in the suit, shall bear the fees and
expenses of any additional counsel retained by them, but, in case the Fund does
not elect to assume the defense of any such suit, it will reimburse you or such
directors, officers or controlling person or persons, defendant or defendants in
the suit, for the reasonable fees and expenses of any counsel retained by them.
The Fund agrees promptly to notify you of the commencement of any litigation or
proceedings against it or any of its officers or directors in connection with
the issuance or sale of any Shares.

         13. Authorized Representations. The Fund is not authorized to give any
information or to make any representations on behalf of you other than the
information and representations contained in a registration statement (including
a prospectus or statement of additional information) covering

                                       9
<PAGE>

Shares, as such registration statement and prospectus may be amended or
supplemented from time to time.

         You are not authorized to give any information or to make any
representations on behalf of the Fund or in connection with the sale of Shares
other than the information and representations contained in a registration
statement (including a prospectus or statement of additional information)
covering Shares, as such registration statement may be amended or supplemented
from time to time. No person other than you is authorized to act as principal
underwriter (as such term is defined in the 1940 Act) for the Fund.

         14. Duration and Termination of this Agreement. This Agreement shall
become effective upon the date first written above and will remain in effect
until September 30, 1999 and from year to year thereafter, but only so long as
such continuance is specifically approved at least annually by the vote of a
majority of the Directors who are not interested persons of you or of the Fund,
cast in person at a meeting called for the purpose of voting on such approval,
and by vote of the Board of Directors or of a majority of the outstanding voting
securities of the Fund. This Agreement may, on 60 days' written notice, be
terminated at any time without the payment of any penalty, by the Board of
Directors of the Fund, by a vote of a majority of the outstanding voting
securities of the Fund, or by you. This Agreement will automatically terminate
in the event of its assignment. In interpreting the provisions of this paragraph
14, the definitions contained in Section 2(a) of the 1940 Act (particularly the
definitions of "interested person", "assignment" and "majority of the
outstanding voting securities"), as modified by any applicable order of the
Securities and Exchange Commission, shall be applied.

         15. Amendment of this Agreement. No provisions of this Agreement may be
changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party against which enforcement of the change, waiver,
discharge or termination is sought. If the Fund should at any time deem it
necessary or advisable in the best interests of the Fund that any amendment of
this Agreement be made in order to comply with the recommendations or
requirements of the Securities and Exchange Commission or other governmental
authority or to obtain any advantage

                                       10
<PAGE>

under state or federal tax laws and should notify you of the form of such
amendment, and the reasons therefor, and if you should decline to assent to such
amendment, the Fund may terminate this Agreement forthwith. If you should at any
time request that a change be made in the Fund's Articles of Incorporation or
By-laws or in its methods of doing business, in order to comply with any
requirements of federal law or regulations of the Securities and Exchange
Commission or of a national securities association of which you are or may be a
member relating to the sale of shares of the Fund, and the Fund should not make
such necessary change within a reasonable time, you may terminate this Agreement
forthwith.

         16. Termination of Prior Agreements. This Agreement upon its
effectiveness terminates and supersedes all prior underwriting contracts between
the parties.

         17. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or effect. This
Agreement may be executed simultaneously in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

         The name "Scudder International Fund, Inc. is the designation of the
Directors for the time being under Articles of Amendment and Restatement of the
Fund, dated February 21, 1991, as amended from time to time, and all persons
dealing with the Fund must look solely to the property of the Fund for the
enforcement of any claims against the Fund, as neither the Directors, officers,
agents or shareholders assume any personal liability for obligations entered
into on behalf of the Fund.

         If you are in agreement with the foregoing, please sign the form of
acceptance on the accompanying counterpart of this letter and return such
counterpart to the Fund, whereupon this letter shall become a binding contract.

                                       11
<PAGE>

                                    Very truly yours,

                                    SCUDDER INTERNATIONAL FUND, INC.


                                    By:  /s/Thomas F. McDonough
                                         ---------------------------------------
                                            Thomas F. McDonough
                                            Vice President

         The foregoing agreement is hereby accepted as of the foregoing date
thereof.

                                    SCUDDER INVESTOR SERVICES, INC.

                                    By: /s/Daniel Pierce
                                        ----------------------------------------
                                           Daniel Pierce
                                           Vice President

                                       12
<PAGE>

                                   Schedule A

                      Scudder Emerging Markets Growth Fund
                       Scudder Greater Europe Growth Fund
      Scudder International Fund (International Shares and Barrett Shares)
                  Scudder International Growth and Income Fund
                        Scudder International Growth Fund
                        Scudder International Value Fund
                           Scudder Latin America Fund
                       Scudder Pacific Opportunities Fund

                                       13



                                                                 Exhibit (h)(14)

                       FUND ACCOUNTING SERVICES AGREEMENT

THIS  AGREEMENT  is  made  on  the  30th  day  of  June,  1998  between  Scudder
International Fund, Inc. (the "Fund"), on behalf of Scudder International Growth
Fund (hereinafter  called the  "Portfolio"),  a registered  open-end  management
investment company with its principal place of business in Boston, Massachusetts
and Scudder Fund Accounting Corporation, with its principal place of business in
Boston, Massachusetts (hereinafter called "FUND ACCOUNTING").

WHEREAS,  the  Portfolio  has need for certain  accounting  services  which FUND
ACCOUNTING is willing and able to provide;

NOW THEREFORE in  consideration of the mutual promises herein made, the Fund and
FUND ACCOUNTING agree as follows:

Section 1.  Duties of FUND ACCOUNTING - General

     FUND  ACCOUNTING is authorized to act under the terms of this  Agreement as
     the Portfolio's fund accounting agent, and as such FUND ACCOUNTING shall:

     a.   Maintain and preserve all accounts, books, financial records and other
          documents  as  are  required  of  the  Fund  under  Section  31 of the
          Investment Company Act of 1940 (the "1940 Act") and Rules 31a-1, 31a-2
          and 31a-3 thereunder,  applicable federal and state laws and any other
          law or  administrative  rules or procedures which may be applicable to
          the Fund on behalf of the Portfolio,  other than those accounts, books
          and  financial  records  required  to  be  maintained  by  the  Fund's
          custodian or transfer agent and/or books and records maintained by all
          other service providers necessary for the Fund to conduct its business
          as a registered open-end management investment company. All such books
          and records  shall be the  property of the Fund and shall at all times
          during regular  business hours be open for inspection by, and shall be
          surrendered  promptly upon request of, duly authorized officers of the
          Fund.  All such books and records  shall at all times  during  regular
          business hours be open for inspection, upon request of duly authorized
          officers of the Fund, by employees or agents of the Fund and employees
          and agents of the  Securities and Exchange  Commission.

     b.   Record the  current  day's  trading  activity  and such  other  proper
          bookkeeping  entries as are necessary for  determining  that day's net
          asset value and net income.

     c.   Render  statements  or  copies  of  records  as from  time to time are
          reasonably requested by the Fund.

     d.   Facilitate  audits  of  accounts  by  the  Fund's  independent  public
          accountants or by any other  auditors  employed or engaged by the Fund
          or by any regulatory body with jurisdiction over the Fund.

     e.   Compute the Portfolio's net asset value per share, and, if applicable,
          its public  offering  price and/or its daily  dividend rates and money
          market  yields,  in  accordance  with Section 3 of the  Agreement  and
          notify  the Fund and such  other  persons  as the Fund may  reasonably
          request of the net asset value per share,  the public  offering  price
          and/or its daily dividend rates and money market yields.

<PAGE>

Section 2.  Valuation of Securities

     Securities  shall be valued in accordance with (a) the Fund's  Registration
     Statement,  as  amended  or  supplemented  from  time to time  (hereinafter
     referred to as the  "Registration  Statement");  (b) the resolutions of the
     Board of Directors of the Fund at the time in force and applicable, as they
     may from  time to time be  delivered  to FUND  ACCOUNTING,  and (c)  Proper
     Instructions  from such  officers of the Fund or other  persons as are from
     time to time  authorized  by the  Board  of  Directors  of the Fund to give
     instructions with respect to computation and determination of the net asset
     value.  FUND  ACCOUNTING  may use one or more  external  pricing  services,
     including broker-dealers,  provided that an appropriate officer of the Fund
     shall have approved such use in advance.

Section 3.  Computation of Net Asset Value,  Public Offering  Price,  Daily
Dividend Rates and Yields

     FUND ACCOUNTING  shall compute the  Portfolio's net asset value,  including
     net income,  in a manner  consistent  with the specific  provisions  of the
     Registration  Statement.  Such computation  shall be made as of the time or
     times specified in the Registration Statement.

     FUND  ACCOUNTING  shall compute the daily  dividend  rates and money market
     yields, if applicable,  in accordance with the methodology set forth in the
     Registration Statement.

Section 4.  FUND ACCOUNTING's Reliance on Instructions and Advice

     In maintaining  the  Portfolio's  books of account and making the necessary
     computations  FUND  ACCOUNTING  shall be entitled to receive,  and may rely
     upon,  information furnished it by means of Proper Instructions,  including
     but not limited to:

     a.   The manner and amount of accrual of  expenses  to be  recorded  on the
          books of the Portfolio;

     b.   The source of quotations to be used for such  securities as may not be
          available through FUND ACCOUNTING's normal pricing services;

     c.   The value to be  assigned  to any asset for which no price  quotations
          are readily available;

     d.   If applicable,  the manner of computation of the public offering price
          and such other computations as may be necessary;

     e.   Transactions in portfolio securities;

     f.   Transactions in capital shares.

     FUND ACCOUNTING shall be entitled to receive, and shall be entitled to rely
     upon, as conclusive  proof of any fact or matter required to be ascertained
     by it hereunder,  a certificate,  letter or other  instrument  signed by an
     authorized officer of the Fund or any other person authorized by the Fund's
     Board of Trustees.

     FUND ACCOUNTING shall be entitled to receive and act upon advice of Counsel
     (which  may be  Counsel  for the  Fund) at the  reasonable  expense  of the
     Portfolio and shall be without liability for any action taken or thing done
     in good faith in reliance upon such advice.

     FUND  ACCOUNTING  shall  be  entitled  to  receive,   and  may  rely  upon,
     information received from the Transfer Agent.

                                       2
<PAGE>

Section 5.  Proper Instructions

     "Proper Instructions" as used herein means any certificate, letter or other
     instrument or telephone call  reasonably  believed by FUND ACCOUNTING to be
     genuine and to have been properly made or signed by any authorized officer
     of the Fund or person  certified to FUND ACCOUNTING as being  authorized by
     the Board of Directors.  The Fund, on behalf of the Portfolio,  shall cause
     oral  instructions  to be confirmed  in writing.  Proper  Instructions  may
     include  communications  effected  directly between  electro-mechanical  or
     electronic  devices as from time to time agreed to by an authorized officer
     of the Fund and FUND ACCOUNTING.

     The Fund, on behalf of the Portfolio,  agrees to furnish to the appropriate
     person(s) within FUND ACCOUNTING a copy of the Registration Statement as in
     effect from time to time.  FUND  ACCOUNTING  may  conclusively  rely on the
     Fund's most  recently  delivered  Registration  Statement  for all purposes
     under this  Agreement  and shall not be liable to the Portfolio or the Fund
     in acting in reliance thereon.

Section 6.  Standard of Care and Indemnification

     FUND  ACCOUNTING  shall  exercise  reasonable  care  and  diligence  in the
     performance of its duties  hereunder.  The Fund agrees that FUND ACCOUNTING
     shall not be liable  under  this  Agreement  for any error of  judgment  or
     mistake  of law  made in good  faith  and  consistent  with  the  foregoing
     standard of care,  provided that nothing in this Agreement  shall be deemed
     to protect or purport to protect FUND  ACCOUNTING  against any liability to
     the Fund, the Portfolio or its  shareholders to which FUND ACCOUNTING would
     otherwise  be  subject  by  reason  of  willful  misfeasance,  bad faith or
     negligence in the  performance of its duties,  or by reason of its reckless
     disregard of its obligations and duties hereunder.

     The Fund agrees, on behalf of the Portfolio, to indemnify and hold harmless
     FUND  ACCOUNTING  and its  employees,  agents and nominees  from all taxes,
     charges,   expenses,   assessments,   claims  and  liabilities   (including
     reasonable attorneys' fees) incurred or assessed against them in connection
     with the performance of this Agreement, except such as may arise from their
     own negligent action,  negligent failure to act or willful misconduct.  The
     foregoing  notwithstanding,  FUND ACCOUNTING will in no event be liable for
     any  loss   resulting   from  the  acts,   omissions,   lack  of  financial
     responsibility,  or  failure to perform  the  obligations  of any person or
     organization  designated  by the  Fund to be the  authorized  agent  of the
     Portfolio as a party to any transactions.

     FUND  ACCOUNTING's  responsibility  for damage or loss with  respect to the
     Portfolio's  records arising from fire, flood, Acts of God, military power,
     war,  insurrection or nuclear  fission,  fusion or  radioactivity  shall be
     limited  to the  use of FUND  ACCOUNTING's  best  efforts  to  recover  the
     Portfolio's records determined to be lost, missing or destroyed.

Section 7.  Compensation and FUND ACCOUNTING Expenses

     FUND ACCOUNTING shall be paid as compensation for its services  pursuant to
     this Agreement such compensation as may from time to time be agreed upon in
     writing by the two parties.  FUND  ACCOUNTING  shall be entitled to recover
     its  reasonable  telephone,  courier  or  delivery

                                       3
<PAGE>

     service,  and all other  reasonable  out-of-pocket,  expenses as  incurred,
     including,  without limitation,  reasonable  attorneys' fees and reasonable
     fees for pricing services.

Section 8.  Amendment and Termination

     This Agreement shall continue in full force and effect until  terminated as
     hereinafter provided, may be amended at any time by mutual agreement of the
     parties hereto and may be terminated by an instrument in writing  delivered
     or mailed to the other party. Such termination shall take effect not sooner
     than  ninety (90) days after the date of delivery or mailing of such notice
     of termination.  Any termination  date is to be no earlier than four months
     from the effective date hereof. Upon termination, FUND ACCOUNTING will turn
     over to the Fund or its  designee  and cease to  retain in FUND  ACCOUNTING
     files, records of the calculations of net asset value and all other records
     pertaining to its services hereunder; provided, however, FUND ACCOUNTING in
     its  discretion  may make and retain copies of any and all such records and
     documents which it determines appropriate or for its protection.

Section 9.  Services Not Exclusive

     FUND ACCOUNTING's  services pursuant to this Agreement are not to be deemed
     to be exclusive, and it is understood that FUND ACCOUNTING may perform fund
     accounting  services  for  others.  In acting  under this  Agreement,  FUND
     ACCOUNTING shall be an independent  contractor and not an agent of the Fund
     or the Portfolio.

Section 10.  Notices

     Any notice  shall be  sufficiently  given when  delivered  or mailed to the
     other  party at the  address of such party set forth below or to such other
     person or at such other address as such party may from time to time specify
     in writing to the other party.

     If to FUND ACCOUNTING:        Scudder Fund Accounting Corporation
                                   Two International Place
                                   Boston, Massachusetts 02110
                                   Attn: Vice President

     If to the Fund - Portfolio:   Scudder International Fund, Inc.
                                   Scudder International Growth Fund
                                   345 Park Avenue
                                   New York, New York 10154
                                   Attn:  President, Secretary or Treasurer

Section 11.  Miscellaneous

     This Agreement may not be assigned by FUND  ACCOUNTING  without the consent
     of the  Fund as  authorized  or  approved  by  resolution  of its  Board of
     Directors.

     In  connection  with the  operation  of this  Agreement,  the Fund and FUND
     ACCOUNTING may agree from time to time on such  provisions  interpretive of
     or in  addition  to the  provisions  of this  Agreement  as in their  joint
     opinions may be consistent  with this Agreement.

                                       4
<PAGE>

     Any such interpretive or additional provisions shall be in writing,  signed
     by both parties and annexed hereto,  but no such provisions shall be deemed
     to be an amendment of this Agreement.

     This Agreement  shall be governed and construed in accordance with the laws
     of the Commonwealth of Massachusetts.

     This Agreement may be executed  simultaneously in two or more counterparts,
     each of which shall be deemed an original,  but all of which together shall
     constitute one and the same instrument.

     This  Agreement  constitutes  the  entire  agreement  between  the  parties
     concerning  the subject  matter  hereof,  and  supersedes any and all prior
     understandings.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by  their  respective  officers  thereunto  duly  authorized  and its seal to be
hereunder affixed as of the date first written above.


         [SEAL]                  SCUDDER INTERNATIONAL FUND, INC.
                                 on behalf of Scudder International Growth Fund

                                 By:/s/Daniel Pierce
                                    -------------------
                                    President


         [SEAL]                  SCUDDER FUND ACCOUNTING CORPORATION


                                 By:/s/John R. Hebble
                                    --------------------
                                    Vice President

                                       5


                                                                 Exhibit (h)(15)

                       FUND ACCOUNTING SERVICES AGREEMENT

THIS  AGREEMENT  is  made  on  the  30th  day  of  June,  1998  between  Scudder
International Fund, Inc. (the "Fund"), on behalf of Scudder  International Value
Fund (hereinafter  called the  "Portfolio"),  a registered  open-end  management
investment company with its principal place of business in Boston, Massachusetts
and Scudder Fund Accounting Corporation, with its principal place of business in
Boston, Massachusetts (hereinafter called "FUND ACCOUNTING").

WHEREAS,  the  Portfolio  has need for certain  accounting  services  which FUND
ACCOUNTING is willing and able to provide;

NOW THEREFORE in  consideration of the mutual promises herein made, the Fund and
FUND ACCOUNTING agree as follows:

Section 1.  Duties of FUND ACCOUNTING - General

         FUND  ACCOUNTING is authorized to act under the terms of this Agreement
         as the Portfolio's  fund accounting  agent, and as such FUND ACCOUNTING
         shall:

         a.       Maintain and preserve all accounts,  books,  financial records
                  and other  documents as are required of the Fund under Section
                  31 of the Investment  Company Act of 1940 (the "1940 Act") and
                  Rules 31a-1,  31a-2 and 31a-3 thereunder,  applicable  federal
                  and state  laws and any other law or  administrative  rules or
                  procedures  which may be  applicable  to the Fund on behalf of
                  the Portfolio,  other than those accounts, books and financial
                  records  required to be maintained by the Fund's  custodian or
                  transfer  agent  and/or  books and records  maintained  by all
                  other service providers  necessary for the Fund to conduct its
                  business  as  a  registered  open-end  management   investment
                  company.  All such books and records  shall be the property of
                  the Fund and shall at all times during regular  business hours
                  be open for inspection  by, and shall be surrendered  promptly
                  upon  request of, duly  authorized  officers of the Fund.  All
                  such  books  and  records  shall at all times  during  regular
                  business  hours be open for  inspection,  upon request of duly
                  authorized officers of the Fund, by employees or agents of the
                  Fund and employees and agents of the  Securities  and Exchange
                  Commission.
         b.       Record  the  current  day's  trading  activity  and such other
                  proper  bookkeeping  entries as are necessary for  determining
                  that day's net asset value and net income.
         c.       Render  statements  or copies of  records as from time to time
                  are reasonably  requested by the Fund.
         d.       Facilitate audits of accounts by the Fund's independent public
                  accountants  or by any other  auditors  employed or engaged by
                  the Fund or by any regulatory body with  jurisdiction over the
                  Fund.
         e.       Compute the  Portfolio's  net asset  value per share,  and, if
                  applicable,   its  public  offering  price  and/or  its  daily
                  dividend  rates and money market  yields,  in accordance  with
                  Section 3 of the  Agreement and notify the Fund and such other
                  persons  as the Fund may  reasonably  request of the net asset
                  value per share,  the public  offering  price and/or its daily
                  dividend rates and money market yields.

<PAGE>

Section 2.  Valuation of Securities

         Securities   shall  be  valued  in  accordance   with  (a)  the  Fund's
         Registration  Statement,  as amended or supplemented  from time to time
         (hereinafter  referred  to as the  "Registration  Statement");  (b) the
         resolutions  of the Board of Directors of the Fund at the time in force
         and  applicable,  as they may from  time to time be  delivered  to FUND
         ACCOUNTING,  and (c) Proper Instructions from such officers of the Fund
         or other  persons as are from time to time  authorized  by the Board of
         Directors of the Fund to give  instructions with respect to computation
         and  determination of the net asset value.  FUND ACCOUNTING may use one
         or more external pricing services,  including broker-dealers,  provided
         that an appropriate officer of the Fund shall have approved such use in
         advance.

Section 3. Computation of Net Asset Value, Public Offering Price, Daily Dividend
Rates and Yields

         FUND  ACCOUNTING   shall  compute  the  Portfolio's  net  asset  value,
         including  net  income,  in  a  manner  consistent  with  the  specific
         provisions of the Registration  Statement.  Such  computation  shall be
         made as of the time or times specified in the Registration Statement.

         FUND ACCOUNTING shall compute the daily dividend rates and money market
         yields, if applicable,  in accordance with the methodology set forth in
         the Registration Statement.

Section 4.  FUND ACCOUNTING's Reliance on Instructions and Advice

         In  maintaining  the  Portfolio's  books  of  account  and  making  the
         necessary  computations  FUND ACCOUNTING  shall be entitled to receive,
         and  may  rely  upon,  information  furnished  it by  means  of  Proper
         Instructions, including but not limited to:

         a.       The manner and amount of accrual of expenses to be recorded on
                  the books of the Portfolio;
         b.       The source of quotations to be used for such securities as may
                  not be available  through  FUND  ACCOUNTING's  normal  pricing
                  services;
         c.       The  value to be  assigned  to any  asset  for  which no price
                  quotations are readily available;
         d.       If  applicable,  the  manner  of  computation  of  the  public
                  offering  price  and  such  other   computations   as  may  be
                  necessary;
         e.       Transactions in portfolio securities;
         f.       Transactions in capital shares.

         FUND ACCOUNTING shall be entitled to receive,  and shall be entitled to
         rely upon,  as  conclusive  proof of any fact or matter  required to be
         ascertained by it hereunder, a certificate,  letter or other instrument
         signed  by an  authorized  officer  of the  Fund  or any  other  person
         authorized by the Fund's Board of Trustees.

         FUND  ACCOUNTING  shall be  entitled  to receive and act upon advice of
         Counsel (which may be Counsel for the Fund) at the  reasonable  expense
         of the Portfolio and shall be without liability for any action taken or
         thing done in good faith in reliance upon such advice.

         FUND  ACCOUNTING  shall be  entitled  to  receive,  and may rely  upon,
         information received from the Transfer Agent.

                                       2
<PAGE>

Section 5.  Proper Instructions

         "Proper  Instructions" as used herein means any certificate,  letter or
         other  instrument  or  telephone  call  reasonably   believed  by  FUND
         ACCOUNTING  to be genuine and to have been  properly  made or signed by
         any  authorized  officer  of the  Fund  or  person  certified  to  FUND
         ACCOUNTING as being authorized by the Board of Directors.  The Fund, on
         behalf of the Portfolio,  shall cause oral instructions to be confirmed
         in writing.  Proper  Instructions may include  communications  effected
         directly between  electro-mechanical or electronic devices as from time
         to time  agreed  to by an  authorized  officer  of the  Fund  and  FUND
         ACCOUNTING.

         The  Fund,  on  behalf  of the  Portfolio,  agrees  to  furnish  to the
         appropriate person(s) within FUND ACCOUNTING a copy of the Registration
         Statement  as  in  effect  from  time  to  time.  FUND  ACCOUNTING  may
         conclusively  rely on the Fund's most recently  delivered  Registration
         Statement for all purposes under this Agreement and shall not be liable
         to the Portfolio or the Fund in acting in reliance thereon.

Section 6.  Standard of Care and Indemnification

         FUND  ACCOUNTING  shall exercise  reasonable  care and diligence in the
         performance  of  its  duties  hereunder.  The  Fund  agrees  that  FUND
         ACCOUNTING  shall not be liable under this  Agreement  for any error of
         judgment or mistake of law made in good faith and  consistent  with the
         foregoing  standard of care,  provided  that nothing in this  Agreement
         shall be deemed to  protect  or  purport  to  protect  FUND  ACCOUNTING
         against any liability to the Fund, the Portfolio or its shareholders to
         which FUND  ACCOUNTING  would otherwise be subject by reason of willful
         misfeasance,  bad faith or negligence in the performance of its duties,
         or by reason of its reckless  disregard of its  obligations  and duties
         hereunder.

         The Fund agrees,  on behalf of the  Portfolio,  to  indemnify  and hold
         harmless FUND  ACCOUNTING and its  employees,  agents and nominees from
         all taxes,  charges,  expenses,  assessments,  claims  and  liabilities
         (including  reasonable  attorneys'  fees) incurred or assessed  against
         them in connection with the performance of this Agreement,  except such
         as may arise from their own negligent action,  negligent failure to act
         or willful misconduct. The foregoing  notwithstanding,  FUND ACCOUNTING
         will in no  event  be  liable  for any loss  resulting  from the  acts,
         omissions, lack of financial responsibility,  or failure to perform the
         obligations of any person or organization  designated by the Fund to be
         the authorized agent of the Portfolio as a party to any transactions.

         FUND ACCOUNTING's responsibility for damage or loss with respect to the
         Portfolio's  records arising from fire,  flood,  Acts of God,  military
         power,  war,  insurrection or nuclear fission,  fusion or radioactivity
         shall  be  limited  to the use of FUND  ACCOUNTING's  best  efforts  to
         recover  the  Portfolio's  records  determined  to be lost,  missing or
         destroyed.

Section 7.  Compensation and FUND ACCOUNTING Expenses

         FUND ACCOUNTING shall be paid as compensation for its services pursuant
         to this Agreement such  compensation as may from time to time be agreed
         upon in writing by the two parties.  FUND ACCOUNTING  shall be entitled
         to recover its reasonable  telephone,  courier or delivery

                                       3
<PAGE>

         service, and all other reasonable out-of-pocket,  expenses as incurred,
         including,   without   limitation,   reasonable   attorneys'  fees  and
         reasonable fees for pricing services.

Section 8.  Amendment and Termination

         This Agreement shall continue in full force and effect until terminated
         as hereinafter provided, may be amended at any time by mutual agreement
         of the parties hereto and may be terminated by an instrument in writing
         delivered or mailed to the other  party.  Such  termination  shall take
         effect not sooner  than  ninety (90) days after the date of delivery or
         mailing of such notice of termination. Any termination date is to be no
         earlier  than  four  months  from  the  effective  date  hereof.   Upon
         termination, FUND ACCOUNTING will turn over to the Fund or its designee
         and  cease  to  retain  in  FUND  ACCOUNTING  files,   records  of  the
         calculations of net asset value and all other records pertaining to its
         services  hereunder;   provided,   however,   FUND  ACCOUNTING  in  its
         discretion  may make and retain  copies of any and all such records and
         documents which it determines appropriate or for its protection.

Section 9.  Services Not Exclusive

         FUND  ACCOUNTING's  services  pursuant to this  Agreement are not to be
         deemed to be exclusive,  and it is understood  that FUND ACCOUNTING may
         perform  fund  accounting  services  for others.  In acting  under this
         Agreement,  FUND ACCOUNTING shall be an independent  contractor and not
         an agent of the Fund or the Portfolio.

Section 10.  Notices

         Any notice shall be sufficiently  given when delivered or mailed to the
         other  party at the  address of such  party set forth  below or to such
         other  person or at such  other  address as such party may from time to
         time specify in writing to the other party.

         If to FUND ACCOUNTING:          Scudder Fund Accounting Corporation
                                         Two International Place
                                         Boston, Massachusetts 02110
                                         Attn:  Vice President

         If to the Fund - Portfolio:     Scudder International Fund, Inc.
                                         Scudder International Value Fund
                                         345 Park Avenue
                                         New York, New York  10154
                                         Attn: President, Secretary or Treasurer

Section 11.  Miscellaneous

         This  Agreement  may not be  assigned  by FUND  ACCOUNTING  without the
         consent of the Fund as  authorized  or  approved by  resolution  of its
         Board of Directors.

         In connection with the operation of this  Agreement,  the Fund and FUND
         ACCOUNTING may agree from time to time on such provisions  interpretive
         of or in addition to the provisions of this Agreement as in their joint
         opinions may be consistent with this Agreement.  Any such

                                       4
<PAGE>

         interpretive or additional  provisions  shall be in writing,  signed by
         both parties and annexed hereto, but no such provisions shall be deemed
         to be an amendment of this Agreement.

         This Agreement  shall be governed and construed in accordance  with the
         laws of the Commonwealth of Massachusetts.

         This  Agreement  may  be  executed   simultaneously   in  two  or  more
         counterparts,  each of which  shall be deemed an  original,  but all of
         which together shall constitute one and the same instrument.

         This Agreement  constitutes  the entire  agreement  between the parties
         concerning the subject matter hereof,  and supersedes any and all prior
         understandings.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by  their  respective  officers  thereunto  duly  authorized  and its seal to be
hereunder affixed as of the date first written above.


         [SEAL]                   SCUDDER INTERNATIONAL FUND, INC.
                                  on behalf of Scudder International Value Fund

                                  By: /s/Daniel Pierce
                                      ------------------------------------------
                                      President


         [SEAL]                   SCUDDER FUND ACCOUNTING CORPORATION

                                  By: /s/John R. Hebble
                                      ------------------------------------------
                                      Vice President

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