SCUDDER
INVESTMENTS(SM)
[LOG]
- --------------------------------------------------------------------------------
EQUITY/GLOBAL
- --------------------------------------------------------------------------------
Scudder International Value Fund
Fund #305
Semiannual Report
February 29, 2000
A fund seeking long-term capital appreciation primarily in undervalued foreign
equity securities.
A no-load fund with no commissions to buy, sell, or exchange shares.
<PAGE>
Contents
- --------------------------------------------------------------------------------
4 Letter from the Fund's President
6 Performance Update
8 Portfolio Summary
10 Portfolio Management Discussion
12 Glossary of Investment Terms
13 Investment Portfolio
19 Financial Statements
22 Financial Highlights
23 Notes to Financial Statements
27 Officers and Directors
28 Investment Products and Services
30 Scudder Solutions
2
<PAGE>
Scudder International Value Fund
- --------------------------------------------------------------------------------
fund number 305
- --------------------------------------------------------------------------------
Date of Fund's o For the six-month period ended February 29, 2000, the
Inception: fund provided a 3.23% total return, compared to a
9/1/98 1.18% return for the fund's unmanaged benchmark, the
Morgan Stanley Capital (MSCI) EAFE Value Index.
Total Net
Assets as o Given a very favorable recent investment environment
of 2/29/00: for growth stocks over value stocks, we believe the
$2 million fund's approach worked well during this period.
o A cooling of speculation in emerging Asian markets
and a rebound in European economies has begun to
create a more favorable investment climate for
international stocks.
3
<PAGE>
Letter from the Fund's President
- --------------------------------------------------------------------------------
Dear Shareholders,
We are pleased to report to you on Scudder International Value Fund's most
recent semiannual period. The fund's objective is to provide long-term capital
appreciation by investing in undervalued foreign equity securities. Managed by a
team of experienced professionals, the fund has focused its investments on
securities of mid- and large-cap companies, based outside the United States,
that are either included in, or have similar characteristics to those in the
MSCI EAFE Value Index -- a benchmark of foreign security performance based on
price-to-book value ratios.
The fund posted a 3.23% return over the period, compared to a 1.18% return for
the fund's unmanaged benchmark, the MSCI EAFE Value Index. This placed the fund
behind other international funds because of the impressive outperformance of
growth versus value over the period. However, within the value sector, the fund
performed well. For more information on the fund's investment strategy and the
trends driving overseas markets, please turn to the Portfolio Management
Discussion that begins on page 10.
The Board of Scudder International Value Fund has voted to liquidate the fund as
of the close of business on or about May 5, 2000. The Board considered many
factors in making this decision, among them the fund's high current expenses and
the likelihood that the fund would not realize a competitive expense level in
the
4
<PAGE>
near future. We value our relationship with you and would like to remind you
that you may exchange shares of the fund that you own into other funds managed
by Scudder, including Scudder International Fund^1, a fund with similar
investment objectives as the fund, as an alternative investment. Please call a
Scudder representative if you would like to discuss other appropriate fund
options.
Thank you for investing in Scudder International Value Fund. Please do not
hesitate to contact Investor Relations at 1-800-SCUDDER with any questions
regarding your account. Or visit Scudder's Web site at www.scudder.com.
Sincerely,
/s/Nicholas Bratt
Nicholas Bratt
President,
Scudder International Value Fund
^1 Only the International Shares of the fund are part of The Scudder Family of
Funds.
5
<PAGE>
Performance Update
- --------------------------------------------------------------------------------
February 29, 2000
THE ORIGINAL DOCUMENT CONTAINS A LINE CHART HERE
- --------------------------------------------------------------------------------
Growth of a $10,000 Investment
- --------------------------------------------------------------------------------
Scudder International Value Fund MSCI EAFE Value Index*
9/1/98** 10000 10000
11/98 11282 11670
2/99 11199 11607
5/99 12062 12500
8/99 12996 13520
11/99 13592 13859
2/00 13416 13679
- --------------------------------------------------------------------------------
Fund Index Comparison
- --------------------------------------------------------------------------------
Total Return
Growth of Average
Period ended 2/29/2000 $10,000 Cumulative Annual
- --------------------------------------------------------------------------------
Scudder International Value Fund
- --------------------------------------------------------------------------------
1 year $ 11,979 19.79% 19.79%
- --------------------------------------------------------------------------------
Life of Fund** $ 12,644 26.44% 16.98%
- --------------------------------------------------------------------------------
MSCI EAFE Value Index*
- --------------------------------------------------------------------------------
1 year $ 11,785 17.85% 17.85%
- --------------------------------------------------------------------------------
Life of Fund** $ 13,679 36.79% 24.76%
* The Morgan Stanley Capital International (MSCI) Europe, Australia and the
Far East (EAFE) Value Index is an unmanaged capitalization-weighted measure
of stock markets in Europe, Australia and the Far East. The index consists
of the lowest price-to-book value stocks that add up to 50% of the market
cap on a country to country basis. 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 September 1, 1998.
6
<PAGE>
- --------------------------------------------------------------------------------
Returns and Per Share Information
- --------------------------------------------------------------------------------
THE ORIGINAL DOCUMENT CONTAINS A BAR CHART HERE
Periods ended February
Total Return
Scudder International Value Fund MSCI EAFE Value Index*
5.55 12.21
19.79 17.85
1999 2000
- --------------------------------------------------------------------------------
Fund Total
Return (%) 5.55 19.79
- --------------------------------------------------------------------------------
Index Total
Return (%) 12.21 17.85
- --------------------------------------------------------------------------------
Net Asset
Value ($) 12.59 13.87
- --------------------------------------------------------------------------------
Income
Dividends ($) 0.08 0.31
- --------------------------------------------------------------------------------
Capital Gains
Distributions($) -- 0.96
- --------------------------------------------------------------------------------
* The Morgan Stanley Capital International (MSCI) Europe, Australia and the
Far East (EAFE) Value Index is an unmanaged capitalization-weighted measure
of stock markets in Europe, Australia and the Far East. The index consists
of the lowest price to book value stocks that add up to 50% of the Market
Cap on a country to country basis. Index returns assume dividends
reinvested net of withholding tax and, unlike Fund returns, do not reflect
any fees or expenses.
All performance is historical, assumes reinvestment of all dividends and
capital gains, and is not indicative of future results. Investment return
and principal value will fluctuate, so an investor's shares, when redeemed,
may be worth more or less than when purchased. If the Adviser had not
maintained the Fund's expenses, the total return would have been lower.
7
<PAGE>
Portfolio Summary
- --------------------------------------------------------------------------------
February 29, 2000
- --------------------------------------------------------------------------------
Geographical
- --------------------------------------------------------------------------------
A GRAPH IN THE FORM OF A PIE CHART APPEARS HERE, ILLUSTRATING THE EXACT DATA
POINTS IN THE TABLE BELOW.
Europe 69%
Japan 24%
Pacific Basin 6%
Canada 1%
- --------------------------------
100%
- --------------------------------
The fund benefited from a rebound in Europe and renewed growth in "emerging
Asia."
- --------------------------------------------------------------------------------
Sectors
- --------------------------------------------------------------------------------
A GRAPH IN THE FORM OF A PIE CHART APPEARS HERE, ILLUSTRATING THE EXACT DATA
POINTS IN THE TABLE BELOW.
Financial 35%
Manufacturing 19%
Durables 10%
Technology 7%
Utilities 6%
Energy 6%
Communications 4%
Metals & Minerals 2%
Construction 2%
Other 9%
- --------------------------------
100%
- --------------------------------
The strongest returns have come from growth-oriented sectors such as technology
and telecommunications.
8
<PAGE>
- --------------------------------------------------------------------------------
Ten Largest Equity Holdings
- --------------------------------------------------------------------------------
(28% of Portfolio)
1. Koninklijke (Royal) Philips Electronics NV
Manufacturer of consumer electronics
2. LM Ericsson Telephone Co. "B"
Manufacturer of wired and mobile telecommunications
equipment
3. Total SA "B"
Explorer, developer and producer of oil and gas
4. DaimlerChrysler AG
Worldwide designer, manufacturer and marketer of
automobiles, trucks and other vehicles
5. AXA SA
Insurance group providing insurance, finance and
real estate services
6. ING Groep NV
Provider of insurance and financial services
7. Hitachi, Ltd.
General electronics manufacturer
8. Banque Nationale de Paris SA
Bank
9. UPM-Kymmene Oyj
Manufacturer of paper and pulp products
10. Tokyo Electric Power Co.
Electric utility
The fund focuses its investments on securities of mid- and large-cap companies,
based outside the U.S., that are either included in, or have similar
characteristics to, those in the Morgan Stanley Capital International (MSCI)
EAFE Value Index.
For more complete details about the Fund's investment portfolio, see page 13. A
quarterly Fund Summary and Portfolio Holdings are available upon request.
9
<PAGE>
Portfolio Management Discussion
- --------------------------------------------------------------------------------
February 29, 2000
In the following interview, portfolio managers Shahram Tajbakhsh and Josephine
Chu discuss the fund's market environment and strategy during the six-month
period ended February 29, 2000.
Q: How has Scudder International Value Fund performed over the past six months?
A: The fund's total return was 3.23% over the period, compared to a 1.18% return
for the fund's unmanaged benchmark, the MSCI EAFE Value Index.
Q: How would you characterize the fund's return during this period?
A: We are pleased with the results. Even though the fund's return was below that
of other investments, it still outpaced its benchmark. Also, as in the United
States, the biggest returns from international equity markets came from
growth-oriented sectors such as technology and telecommunications, not from the
value sectors in which the fund invests. Therefore, given the climate in which
we invest, we think our approach served the fund well.
Q: What has contributed to the performance of the fund?
A: In the first few months of the period, markets in "emerging Asia," including
Thailand, Hong Kong, and South Korea, performed well. Holdings that benefited
from this environment included Pohang Iron & Steel and Kookmin Bank in South
Korea, and ICICI Ltd., a bank in India. However, as we approached the end of
1999 and moved into 2000, these markets began to underperform. This
underperformance was due in part to a cooling of speculation that had fueled
these markets, but also to renewed economic sluggishness, such as we are seeing
in Japan. In the meantime, European markets have begun to rebound, as economies
in Germany, France, Spain, and other countries are showing new signs of growth.
This environment helped the performance of one of the fund's holdings, Ericsson,
a Swedish telecommunications equipment company, and transformed it from a value
stock to a growth stock.
10
<PAGE>
Q: What kind of individual should consider international value investments?
A: International value investments are for people who want increased
diversification among global markets. Although growth stocks in the United
States and elsewhere have been the best performers for the past year, we have
seen some slowdown in this phenomenon in the first few months of this year.
International value stocks have shown that they can deliver low correlation with
growth stocks and -- over time -- comparable returns.
11
<PAGE>
Glossary of Investment Terms
- --------------------------------------------------------------------------------
Hedging A strategy used to offset investment risk. Investment
managers frequently hedge their exposure to currency
changes by buying or selling futures or options
contracts. For example, an investor who wishes to buy
British bonds but feels that the value of the pound
will fall versus the U.S. dollar may buy futures or
options on the pound to offset the projected decline
in the currency.
Price/Earnings A widely used gauge of a stock's valuation that
Ratio (P/E) indicates what investors are paying for a company's
(also "earnings multiple earning power at the current stock price. A
multiple") P/E ratio may be based on a company's projected
earnings for the coming 12 months. A higher "earnings
multiple" indicates higher expected earnings growth,
along with greater risk of earnings disappointment.
Total Return The most common yardstick to measure the performance
of a fund. Total return -- annualized or compounded
-- is based on a combination of share price changes
plus income and capital gain distributions, if any,
expressed as a percentage gain or loss in value.
Value Fund A fund that invests primarily in companies whose
stock prices do not fully reflect their intrinsic
value, as indicated by price/earnings ratio,
price/book value ratio, dividend yield, or some other
valuation measure, relative to their industries or
the market overall. Value stocks tend to display less
price volatility and may carry higher dividend
yields.
(Source: Scudder Kemper Investments, Inc.; Barron's Dictionary of Finance and
Investment Terms)
12
<PAGE>
Investment Portfolio as of February 29, 2000 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount ($) Value ($)
- --------------------------------------------------------------------------------
Foreign Bonds 0.0%
- --------------------------------------------------------------------------------
United Kingdom
British Aerospace PLC, 7.45%, 11/30/2003
(Cost of $57) ............................................ 135 211
Shares
- ------------------------------------------------------------------------------
Common Stocks 100.0%
- ------------------------------------------------------------------------------
Australia 3.1%
Australia & New Zealand Banking Group Ltd.
(General trading and savings bank) ....................... 2,680 16,592
Commonwealth Bank of Australia (Provider of banking,
insurance, and related services) ......................... 800 12,366
National Australia Bank Ltd. (Commercial bank) ............. 3,000 39,708
Qantas Airways Ltd. (International airline company) ........ 5,000 11,009
----------
79,675
----------
Austria 0.7%
Voest-Alpine Stahl AG (Processor and distributor of
steel products) .......................................... 605 18,710
----------
Belgium 2.7%
Arbed SA (Manufacturer of steel and related products) ...... 100 9,326
Groupe Bruxelles Lambert SA (Investor in utilities,
media, finance, and real estate) ......................... 50 10,887
Solvay SA (Chemical producer) .............................. 700 48,912
----------
69,125
----------
Canada 0.9%
Dofasco Inc. (Producer of flat rolled and tubular steel) ... 640 10,587
Fletcher Challenge Canada Ltd. "A" (Producer and
supplier of printing paper) .............................. 970 11,366
----------
21,953
----------
Denmark 0.7%
Codan Forsikring (Insurance company) ....................... 70 5,683
Kapital Holding (Provider of banking services) ............. 105 3,874
Unidanmark A/S "A" (Registered) (Financial
service company) ......................................... 150 8,573
----------
18,130
----------
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
Shares Value ($)
- --------------------------------------------------------------------------------
Finland 2.8%
Stora Enso Oyj - R Shares (Manufacturer of
paper and paper products) ................................ 1,475 14,968
UPM-Kymmene Oyj (Manufacturer of paper
and pulp products) ....................................... 2,000 55,668
--------
70,636
--------
France 12.1%
AXA SA (Insurance group providing insurance,
finance and real estate services) ........................ 545 68,736
Alcatel (Manufacturer of transportation,
telecommunication and energy equipment) .................. 100 23,504
Assurances Generales de France (Health, life
and liability insurance provider) ........................ 300 14,555
Banque Nationale de Paris SA (Bank) ........................ 750 59,437
Compagnie de Saint-Gobain (Glass manufacturer) ............. 50 6,983
Finaxa (Insurance holding company) ......................... 100 8,940
Lafarge SA, Rights* (Producer of building materials) ....... 200 6
Schneider Electric SA (Manufacturer of electronic
components and automated manufacturing systems) .......... 200 12,950
Societe Generale (Bank) .................................... 50 10,404
Suez Lyonnaise des Eaux SA (Water and electric utility) .... 200 33,053
Total SA "B" (Explorer, developer and producer of oil
and gas) ................................................. 547 72,689
--------
311,257
--------
Germany 9.7%
BASF AG (International chemical producer) .................. 1,000 45,761
DaimlerChrysler AG (Worldwide designer, manufacturer
and marketer of automobiles, trucks and other
vehicles) ................................................ 1,050 71,440
Deutsche Bank AG (Registered) (Provider of financial
services) ................................................ 500 42,234
Dresdner Bank AG (Bank) .................................... 270 12,995
FPB Holding AG (Manufacturer and marketer of paper
and paper products) ...................................... 280 41,403
Siemens AG (Electrical engineering and electronics
company) ................................................. 200 35,855
--------
249,688
--------
Hong Kong 2.6%
Amoy Properties Ltd. (Property management company) ......... 45,000 25,296
Hang Seng Bank Ltd. (Commercial banking and related
financial services) ...................................... 1,000 9,026
i-Cable Communications Ltd.* (Provider of cable
television services) ..................................... 42 46
Kerry Properties, Ltd. (Real estate company) ............... 5,000 6,007
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
Shares Value ($)
- --------------------------------------------------------------------------------
Sun Hung Kai Properties Ltd. (Real estate developer
and finance company) ....................................... 1,000 9,026
Wharf Holdings Ltd. (Property development and
investment) ................................................ 10,000 17,153
--------
66,554
--------
Italy 3.3%
Ente Nazionale Idrocarburi SpA (Exploration and
production of oil, natural gas and chemicals) .............. 5,000 23,340
Montedison SpA (Holding company: chemicals,
natural gas and agriculture) ............................... 7,280 12,840
Telecom Italia SpA (Provider of telecommunications,
electronics and network construction services) ............. 6,000 47,549
--------
83,729
--------
Japan 23.7%
ACOM Co., Ltd. (Provider of financial services) .............. 100 10,590
Amada Metrecs Co., Ltd. (Manufacturer of metal molds
and automated lines) ....................................... 1,000 5,813
Chugoku Electric Power Co., Inc. (Distributor of
electricity) ............................................... 1,300 16,058
Daiichi Pharmaceutical Co., Ltd. (Producer
of ethical drugs) .......................................... 1,000 12,943
Daiwa Securities Co., Ltd. (Provider of brokerage
and other financial services) .............................. 2,000 31,698
Fuji Bank, Ltd. (Provider of commercial and institutional
banking services) .......................................... 2,000 15,550
Hitachi, Ltd. (General electronics manufacturer) ............. 5,000 68,074
Honda Motor Co., Ltd. (Automobile and motorcycle
manufacturer) .............................................. 600 19,619
Japan Energy Corp. (Importer of crude oil) ................... 10,000 7,811
Kyocera Corp. (Manufacturer of ceramic packaging) ............ 300 50,736
Kyushu Electric Power Co. (Provider of electricity) .......... 800 9,490
Mazda Motor Corp. (Manufacturer of automobiles) .............. 1,000 2,897
Mitsubishi Corp. (General trading company) ................... 4,000 29,464
Nikko Securities Co., Ltd. (Securities broker and dealer) .... 2,000 25,740
Nintendo Co., Ltd. (Manufacturer of game equipment) .......... 100 21,789
Ono Pharmaceutical Co., Ltd. (Producer of medicines
for human and veterinary uses) ............................. 1,000 28,156
Ricoh Co., Ltd. (Manufacturer of copiers and
information equipment) ..................................... 2,000 35,804
Sanyo Electric Co., Ltd. (Manufacturer of consumer
electronics) ............................................... 6,000 24,414
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
Shares Value ($)
- --------------------------------------------------------------------------------
Sony Corp. (Manufacturer of consumer electronic
products) ................................................ 100 29,519
Takefuji Corp. (Consumer loan company) ..................... 200 26,067
The Mitsui Trust & Banking Co., Ltd. (Provider of trust
and commercial banking services) ......................... 13,000 20,073
Tohoku Electric Power Co., Inc. (Medium-scale
regional power supplier) ................................. 1,300 15,350
Tokyo Electric Power Co. (Electric utility) ................ 2,500 54,496
Toyko Trust & Banking Co., Ltd. (Commercial bank) .......... 2,000 5,722
Toyota Motor Corp. (Leading automobile manufacturer) ....... 1,000 39,873
--------
607,746
--------
Netherlands 8.9%
ABN AMRO Holding NV (Bank) ................................. 2,100 43,635
DSM NV (Plastic producer) .................................. 90 2,963
ING Groep NV (Provider of insurance and financial
services) ................................................ 1,350 68,523
Koninklijke (Royal) Philips Electronics NV (Manufacturer
of consumer electronics) ................................. 615 114,267
--------
229,388
--------
Norway 0.9%
Christiania Bank og Kreditkasse (Commercial bank) .......... 4,670 23,737
--------
Singapore 0.2%
Wing Tai Holdings Ltd. (Property investment and
development, garment manufacturing, trading in
fabric and architectural products) ....................... 8,000 5,985
--------
Spain 2.5%
Compania Espanola de Petroleos SA (Manufacturer
of energy products and petrochemicals) ................... 2,400 23,079
Endesa SA (Electric power utility) ......................... 1,000 21,233
Repsol SA (Manufacturer of crude oil and natural gas) ...... 1,005 19,086
--------
63,398
--------
Sweden 3.0%
LM Ericsson Telephone Co. "B" (Manufacturer of
wired and mobile telecommunications equipment) ........... 800 76,819
--------
Switzerland 6.0%
ABB, Ltd. (Manufacturer of equipment for power
generation and distribution) ............................. 285 30,463
BK Vision AG* (Investor in banks and insurance
companies) ............................................... 100 18,367
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
Shares Value ($)
- --------------------------------------------------------------------------------
Credit Suisse Group (Registered) (Provider of bank
services, management services and life insurance) ........ 155 24,782
Holderbank Financiere Glaris AG (Bearer) (Cement
producer) ................................................ 35 38,570
Pargesa Holding AG (Investment firm) ....................... 10 18,969
SAirGroup (Airline) ........................................ 50 9,545
UBS AG-Registered (Provider of banking and asset
management services) ..................................... 55 13,430
154,126
United Kingdom 16.1%
Abbey National PLC (Financial services) .................... 600 6,757
BP Amoco PLC (Major oil company) ........................... 3,200 24,717
Barclays PLC (Commercial and investment banking,
insurance and other financial services) .................. 2,200 52,264
British Aerospace PLC (Producer of military aircraft) ...... 429 2,113
Cable and Wireless PLC (International
telecommunication services in the United
Kingdom and Hong Kong) ..................................... 1,000 20,724
Delta PLC (Manufacturer of elecrtical cables) .............. 1,500 2,565
GKN PLC (Producer of automotive, agritechnical and
aerospace vehicles and provider of various industrial
services) ................................................ 1,000 12,937
HSBC Holdings PLC (financial company) ...................... 4,000 46,881
Hyder PLC (Provider of infrastructure services) ............ 750 2,381
Imperial Tobacco Group PLC (Manufacturer of tobacco
products) ................................................ 1,320 8,757
Lonmin PLC (Miner of platinum, gold and coal) .............. 550 5,908
Marconi PLC (Provider of telecommunications equipment) ..... 1,000 12,463
Peninsular and Oriental Steam Navigation Co. PLC
(Shipping and transportation company) ...................... 1,100 11,989
Pilkington PLC (Manufacturer of glass for building and
automotive markets) ...................................... 1,700 1,799
Rolls-Royce PLC (Manufacturer of aero, marine, and
industrial gas turbines) ................................. 9,000 29,143
Royal Bank of Scotland Group PLC (Bank) .................... 4,000 52,567
Scottish Power PLC (Electric utility) ...................... 1,500 11,385
Severn Trent PLC (Supplier of water and other
related services) ........................................ 330 2,747
Shell Transport & Trading PLC (Petroleum company) .......... 3,000 20,708
Tarmac PLC (Manufacturer of ready-mix concrete) ............ 1,568 14,415
Thames Water PLC (Water holding company) ................... 600 6,492
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
Shares Value ($)
- --------------------------------------------------------------------------------
Tomkins PLC (Diversified international industrial
company) ............................................... 5,219 14,508
United Utilities PLC (Multi-utility business) ............ 1,750 18,078
Vodafone AirTouch PLC (Provider of telecommunication
services) .............................................. 5,000 27,998
W.H. Smith Group PLC (Book, newspaper, music and
hardware retailer) ..................................... 500 2,500
--------
412,796
--------
- --------------------------------------------------------------------------------
Total Common Stocks (Cost $2,426,066) 2,563,452
- --------------------------------------------------------------------------------
Total Investment Portfolio -- 100.0% (Cost $2,426,123) (a) 2,563,663
- --------------------------------------------------------------------------------
* Non-income producing
(a) The cost for federal income tax purposes was $2,444,266. At February 29,
2000, net unrealized appreciation for all securities based on tax cost was
$119,397. This consisted of aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost of $367,063
and aggregate gross unrealized depreciation for all securities in which
there was an excess of tax cost over value of $247,666.
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
Financial Statements
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities as of February 29, 2000 (Unaudited)
- --------------------------------------------------------------------------------
Assets
- --------------------------------------------------------------------------------
Investments in securities, at value (cost $2,426,123) .......... $ 2,563,663
Cash ........................................................... 21,389
Foreign currency, at value (cost $43,759) ...................... 44,497
Receivable for investments sold ................................ 550,304
Dividends receivable ........................................... 3,469
Receivable for Fund shares sold ................................ 156
Foreign taxes recoverable ...................................... 3,016
Due from Adviser ............................................... 113,004
-----------
Total assets ................................................... 3,299,498
Liabilities
- --------------------------------------------------------------------------------
Notes payable .................................................. 500,000
Payable for Fund shares redeemed ............................... 249,818
Foreign taxes payable .......................................... 1,480
Accrued expenses and payables .................................. 144,575
-----------
Total liabilities .............................................. 895,873
Net assets, at value ........................................... $ 2,403,625
Net Assets
- --------------------------------------------------------------------------------
Net assets consist of:
Accumulated distributions in excess of net investment income ... (53,206)
Unrealized appreciation (depreciation) on:
Investments .................................................. 137,540
Foreign currency related transactions ........................ 18,667
Accumulated net realized gain (loss) ........................... 278,754
Paid-in capital ................................................ 2,021,870
- --------------------------------------------------------------------------------
Net assets, at value $ 2,403,625
- --------------------------------------------------------------------------------
Net Asset Value
- --------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share
($2,403,625/ 173,279 shares of capital stock outstanding,
$.01 par value, 100,000,000 of shares authorized) ............ $ 13.87
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations for the six months ended February 29, 2000 (Unaudited)
- --------------------------------------------------------------------------------
Investment Income
- --------------------------------------------------------------------------------
Dividends (net of foreign taxes withheld of $2,828) ............... $ 21,366
Interest .......................................................... 180
---------
Total income ...................................................... 21,546
---------
Expenses:
Management fee .................................................... 16,746
Services to shareholders .......................................... 15,329
Custodian and accounting fees ..................................... 89,447
Auditing .......................................................... 25,975
Legal ............................................................. 1,630
Directors' fees and expenses ...................................... 19,868
Reports to shareholders ........................................... 4,170
Registration fees ................................................. 29,150
Interest expense .................................................. 585
Other ............................................................. 10,788
---------
Total expenses, before expense reductions ......................... 213,688
Expense reductions ................................................ (184,574)
---------
Total expenses, after expense reductions .......................... 29,114
Net investment income (loss) (7,568)
Realized and unrealized gain (loss) on investment transactions
- --------------------------------------------------------------------------------
Net realized gain (loss) from:
Investments (net of foreign taxes of $1,480) ...................... 298,078
Foreign currency related transactions ............................. 11,866
---------
309,944
---------
Net unrealized appreciation (depreciation) during the period on:
Investments ....................................................... (209,226)
Foreign currency related transactions ............................. 18,001
---------
(191,225)
- --------------------------------------------------------------------------------
Net gain (loss) on investment transactions 118,719
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 111,151
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
For the period
September 1,
Six Months 1998
Ended (commencement
February 29, of operations)
2000 to August 31,
Increase (Decrease) in Net Assets (Unaudited) 1999
- --------------------------------------------------------------------------------
Operations:
Net investment income (loss) ................... $ (7,568) $ 37,454
Net realized gain (loss) from investment
transactions ................................. 309,944 177,503
Net unrealized appreciation (depreciation) on
investment transactions during the period .... (191,225) 347,432
----------- -----------
Net increase (decrease) in net assets resulting
from operations ................................ 111,151 562,389
----------- -----------
Distributions to shareholders from:
Net investment income .......................... (67,583) (16,002)
Net realized gains ............................. (208,200) --
----------- -----------
Fund share transactions:
Proceeds from shares sold ...................... 1,573,976 5,547,701
Reinvestment of distributions .................. 268,903 15,431
Cost of shares redeemed ........................ (2,501,943) (2,883,398)
----------- -----------
Net increase (decrease) in net assets from Fund
share transactions ............................. (659,064) 2,679,734
----------- -----------
Increase (decrease) in net assets .............. (823,696) 3,226,121
Net assets at beginning of period .............. 3,227,321 1,200
Net assets at end of period (including
accumulated distributions in excess of
net investment income of $53,206 and
undistributed net investment income
of $21,945) .................................. $ 2,403,625 $ 3,227,321
Other Information
- --------------------------------------------------------------------------------
Shares outstanding at beginning of period ...... 220,899 100
----------- -----------
Shares sold .................................... 106,140 445,751
Shares issued to shareholders in reinvestment of
distributions ................................ 18,406 1,169
Shares redeemed ................................ (172,166) (226,121)
----------- -----------
Net increase (decrease) in Fund shares ......... (47,620) 220,799
Shares outstanding at end of period ............ 173,279 220,899
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
- --------------------------------------------------------------------------------
2000(b) 1999(c)
- --------------------------------------------------------------------------------
Net asset value, beginning of period $14.61 $12.00
----------------
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
- --------------------------------------------------------------------------------
Net investment income (loss) (a) (.03) .18
- --------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investment transactions .56 2.51
----------------
- --------------------------------------------------------------------------------
Total from investment operations .53 2.69
- --------------------------------------------------------------------------------
Less distributions from:
- --------------------------------------------------------------------------------
Net investment income (.31) (.08)
- --------------------------------------------------------------------------------
Net realized gains (loss)
on investment transactions (.96) --
----------------
- --------------------------------------------------------------------------------
Total distributions (1.27) (.08)
- --------------------------------------------------------------------------------
Net asset value, end of period $13.87 $14.61
----------------
- --------------------------------------------------------------------------------
Total Return (%) (d) 3.23** 22.49
- --------------------------------------------------------------------------------
Ratios to Average Net Assets and Supplemental Data
- --------------------------------------------------------------------------------
Net assets, end of period ($ millions) 2 3
- --------------------------------------------------------------------------------
Ratio of expenses before expense reductions (%) 12.81* 12.74
- --------------------------------------------------------------------------------
Ratio of expenses after expense reductions (%) 1.75* 1.75
- --------------------------------------------------------------------------------
Ratio of net investment income (loss) (%) (.23)** 1.39
- --------------------------------------------------------------------------------
Portfolio turnover rate (%) 32* 75
- --------------------------------------------------------------------------------
(a) Based on monthly average shares outstanding during the period.
(b) For the six months ended February 29, 2000 (Unaudited).
(c) For the period September 1, 1998 (commencement of operations) to August 31,
1999.
(d) Total returns would have been lower had certain expenses not been reduced.
* Annualized
** Not annualized
22
<PAGE>
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
A. Significant Accounting Policies
Scudder International Value Fund (the "Fund") is a diversified series of Scudder
International Fund, Inc. (the "Corporation") which is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company organized as a Maryland Corporation.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management estimates.
The policies described below are followed consistently by the Fund in the
preparation of its financial statements.
Security Valuation. Investments are stated at value determined as of the close
of regular trading on the New York Stock Exchange. Securities which are traded
on U.S. or foreign stock exchanges are valued at the most recent sale price
reported on the exchange on which the security is traded most extensively. If no
sale occurred, the security is then valued at the calculated mean between the
most recent bid and asked quotations. If there are no such bid and asked
quotations, the most recent bid quotation is used. Securities quoted on the
Nasdaq Stock Market ("Nasdaq"), for which there have been sales, are valued at
the most recent sale price reported. If there are no such sales, the value is
the most recent bid quotation. Securities which are not quoted on Nasdaq but are
traded in another over-the-counter market are valued at the most recent sale
price, or if no sale occurred, at the calculated mean between the most recent
bid and asked quotations on such market. If there are no such bid and asked
quotations, the most recent bid quotation shall be used.
Portfolio debt securities purchased with an original maturity greater than sixty
days are valued by pricing agents approved by the officers of the Corporation,
whose quotations reflect broker/dealer-supplied valuations and electronic data
processing techniques. If the pricing agents are unable to provide such
quotations, the most recent bid quotation supplied by a bona fide market maker
shall be used. Money market instruments purchased with an original maturity of
sixty days or less are valued at amortized cost.
All other securities are valued at their fair value as determined in good faith
by the Valuation Committee of the Board of Directors.
Foreign Currency Translations. The books and records of the Fund are maintained
in U.S. dollars. Investment securities and other assets and liabilities
23
<PAGE>
denominated in a foreign currency are translated into U.S. dollars at the
prevailing exchange rates at period end. Purchases and sales of investment
securities, income and expenses are translated into U.S. dollars at the
prevailing exchange rates on the respective dates of the transactions.
Net realized and unrealized gains and losses on foreign currency transactions
represent net gains and losses between trade and settlement dates on securities
transactions, the disposition of forward foreign currency exchange contracts and
foreign currencies, and the difference between the amount of net investment
income accrued and the U.S. dollar amount actually received. That portion of
both realized and unrealized gains and losses on investments that results from
fluctuations in foreign currency exchange rates is not separately disclosed but
is included with net realized and unrealized gains and losses on investment
securities.
Repurchase Agreements. The Fund may enter into repurchase agreements with
certain banks and broker/dealers whereby the Fund, through its custodian or
sub-custodian bank, receives delivery of the underlying securities, the amount
of which at the time of purchase and each subsequent business day is required to
be maintained at such a level that the market value is equal to at least the
principal amount of the repurchase price plus accrued interest.
Taxes. The Fund's policy is to comply with the requirements of the Internal
Revenue Code, as amended, which are applicable to regulated investment companies
and to distribute all of its taxable income to its shareholders. Accordingly,
the Fund paid no federal income taxes and no federal income tax provision was
required.
Net realized and unrealized gains of the Fund derived in India are subject to
certain non-U.S. taxes.
Distribution of Income and Gains. Distributions of net investment income, if
any, are made annually. Net realized gains from investment transactions, in
excess of available capital loss carryforwards, would be taxable to the Fund if
not distributed, and, therefore, will be distributed to shareholders at least
annually.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax regulations
which may differ from generally accepted accounting principles. These
differences primarily relate to investments in forward contracts, passive
foreign investment companies, foreign denominated investments, and certain
securities sold at a loss. As a result, net investment income (loss) and net
24
<PAGE>
realized gain (loss) on investment transactions for a reporting period may
differ significantly from distributions during such period. Accordingly, the
Fund may periodically make reclassifications among certain of its capital
accounts without impacting the net asset value of the Fund.
Investment Transactions and Investment Income. Investment transactions are
accounted for on the trade date. Interest income is recorded on the accrual
basis. Dividend income is recorded on the ex-dividend date. Certain dividends
from foreign securities may be recorded subsequent to ex-dividend date as soon
as the Fund is informed of such dividends. Realized gains and losses from
investment transactions are recorded on an identified cost basis.
B. Purchases and Sales of Securities
For the six months ended February 29, 2000, purchases and sales of investment
securities (excluding short-term investments) aggregated $508,816 and
$1,238,488, respectively.
C. Related Parties
Under the Investment Management Agreement (the "Agreement") with Scudder Kemper
Investments, Inc. (the "Adviser"), the Adviser directs the investments of the
Fund in accordance with its investment objectives, policies, and restrictions.
The Adviser determines the securities, instruments and other contracts relating
to investments to be purchased, sold or entered into by the Fund. In addition to
portfolio management services, the Adviser provides certain administrative
services in accordance with the Agreement. The management fee payable under the
Agreement is equal to an annual rate of 1.00% of the Fund's average daily net
assets computed and accrued daily and payable monthly. The Adviser and certain
of its subsidiaries have agreed to reimburse or not impose, respectively, all or
a portion of their fees payable by the Fund until December 31, 2000 in order to
maintain the annualized expenses of the Fund at not more than 1.75% of average
daily net assets. For the six months ended February 29, 2000, the Adviser did
not impose any of its management fee amounting to $16,746. Further, the Fund's
reimbursement due from the Adviser at February 29, 2000 amounted to $113,004.
Scudder Service Corporation ("SSC"), a subsidiary of the Adviser, is the
transfer, dividend paying and shareholder service agent for the Fund. For the
six months ended February 29, 2000, SSC did not impose any of its fee amounting
to $9,954.
25
<PAGE>
Scudder Fund Accounting Corporation ("SFAC"), a subsidiary of the Adviser, is
responsible for determining the daily net asset value per share and maintaining
the portfolio and general accounting records of the Fund. For the six months
ended February 29, 2000, SFAC did not impose any of its fee amounting to
$25,002.
The Corporation pays each Director not affiliated with the Adviser an annual
retainer plus specified amounts for attended board and committee meetings. For
the six months ended February 29, 2000, Directors' fees and expenses not imposed
aggregated $19,868.
D. Line of Credit
The Fund and several other Scudder Funds (the "Participants") share in a$1
billion revolving credit facility for temporary or emergency purposes, including
the meeting of redemption requests that otherwise might require the untimely
disposition of securities. The Participants are charged an annual commitment fee
which is allocated, pro rata based on net assets, among each of the
Participants. Interest is calculated based on the market rates at the time of
the borrowing. The Fund may borrow up to a maximum of 33 percent of its net
assets under the agreement. The weighted average outstanding daily balance of
all loans (based on the number of days the loans were outstanding) was $309,000
with an average interest rate of 6.29%. Interest expense for the six months
ended February 29, 2000 is $585.
E. Cessation of Operations
On February 7, 2000, the Board of Directors of the Fund approved the cessation
of operations of the Fund effective on or about May 5, 2000 (the "Closing
Date"). Accordingly, the Board has voted to redeem involuntarily the shares of
any Fund shareholder outstanding at that time. This may be a taxable event for
shareholders with the exception of those participating in a qualified defined
contribution plan, defined benefit plan or other qualified retirement vehicle.
In conjunction with approving the cessation of operations of the Fund, the Board
approved closing the Fund to new investors effective as of the close of business
on February 7, 2000.
26
<PAGE>
Officers and Directors
- --------------------------------------------------------------------------------
Nicholas Bratt* Joyce E. Cornell*
o President o Vice President
Sheryle J. Bolton Susan E. Dahl*
o Director; Chief Executive Officer, o Vice President
Scientific Learning Corporation
Philip S. Fortuna*
William T. Burgin o Vice President
o Director; General Partner,
Bessemer Venture Partners Carol L. Franklin*
o Vice President
Keith R. Fox
o Director; General Partner, Edmund B. Games, Jr.*
The Exeter Group of Funds o Vice President
William H. Luers Joan R. Gregory*
o Director; Chairman and President, o Vice President
U.N. Association of America
Theresa Gusman*
Kathryn L. Quirk* o Vice President
o Director; Vice President and
Assistant Secretary Ann M. McCreary*
o Vice President
Joan E. Spero
o Director; President, Doris Duke Robert C. Peck*
Charitable Foundation o Vice President
Paul Bancroft III Sheridan Reilly*
o Honorary Director; Venture o Vice President
Capitalist and Consultant
Shahram Tajbakhsh*
William H. Gleysteen, Jr. o Vice President
o Honorary Director; Consultant;
Guest Scholar, Brookings Institution Tien Yu Sieh*
o Vice President
Wilson Nolen
o Honorary Director; Consultant John Millette*
o Vice President and Secretary
Robert G. Stone, Jr.
o Honorary Director; Chairman John R. Hebble*
Emeritus and Director, Kirby o Treasurer
Corporation
Caroline Pearson*
Elizabeth J. Allan* o Assistant Secretary
o Vice President
*Scudder Kemper Investments, Inc.
Irene T. Cheng*
o Vice President
27
<PAGE>
Investment Products and Services
- --------------------------------------------------------------------------------
1-800-SCUDDER www.scudder.com
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
The Scudder Family of Funds+++
- --------------------------------------------------------------------------------
<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 Select 500 Fund
Premium Shares* Scudder S&P 500 Index Fund
Managed Shares* Scudder Real Estate Investment Fund
Scudder Government Money Market
Series -- Managed Shares* U.S. Growth
Value
Tax Free Money Market+ Scudder Large Company Value Fund
Scudder Tax Free Money Fund Scudder Value Fund***
Scudder Tax Free Money Market Scudder Small Company Value Fund
Series -- Managed Shares* Scudder Micro Cap Fund
Scudder California Tax Free Money Fund** Growth
Scudder New York Tax Free Money Fund** Scudder Classic Growth Fund***
Scudder Large Company Growth Fund***
Tax Free+ Scudder Select 1000 Growth Fund
Scudder Limited Term Tax Free Fund Scudder Development Fund
Scudder Medium Term Tax Free Fund Scudder 21st Century Growth Fund
Scudder Managed Municipal Bonds
Scudder High Yield Tax Free Fund Global Equity
Scudder California Tax Free Fund** Worldwide
Scudder Massachusetts Limited Term Scudder Global Fund
Tax Free Fund** Scudder International Value Fund
Scudder Massachusetts Tax Free Fund** Scudder International Growth and
Scudder New York Tax Free Fund** Income Fund
Scudder Ohio Tax Free Fund** Scudder International Fund++
Scudder International Growth Fund
U.S. Income Scudder Global Discovery Fund***
Scudder Short Term Bond Fund Scudder Emerging Markets Growth Fund
Scudder GNMA Fund Scudder Gold Fund
Scudder Income Fund Regional
Scudder Corporate Bond Fund Scudder Greater Europe Growth Fund
Scudder High Yield Bond Fund Scudder Pacific Opportunities Fund
Scudder Latin America Fund
Global Income The Japan Fund, Inc.
Scudder Global Bond Fund
Scudder International Bond Fund Industry Sector Funds
Scudder Emerging Markets Income Fund Choice Series
Scudder Financial Services Fund
Asset Allocation Scudder Health Care Fund
Scudder Pathway Conservative Portfolio Scudder Technology Fund
Scudder Pathway Balanced Portfolio
Scudder Pathway Growth Portfolio Preferred Series
Scudder Tax Managed Growth Fund
Scudder Tax Managed Small Company Fund
</TABLE>
28
<PAGE>
- --------------------------------------------------------------------------------
1-800-SCUDDER www.scudder.com
- --------------------------------------------------------------------------------
Retirement Programs and Education Accounts
- --------------------------------------------------------------------------------
Retirement Programs Education Accounts
Traditional IRA Education IRA
Roth IRA UGMA/UTMA
SEP-IRA
Keogh Plan
401(k), 403(b) Plans
Variable Annuities
Scudder Horizon Plan**+++ +++
Scudder Horizon Advantage**+++ +++ +++
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Closed-End Funds#
- -----------------------------------------------------------------------------------------
<S> <C>
The Argentina Fund, Inc. Montgomery Street Income Securities, Inc.
The Brazil Fund, Inc. Scudder Global High Income Fund, Inc.
The Korea Fund, Inc. Scudder New Asia 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.
+++ +++ +++ A no-load variable annuity contract issued by Glenbrook Life and
Annuity Company and underwritten by Allstate Financial Services,
Inc., sold 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 other stock exchanges.
29
<PAGE>
Scudder Solutions
- --------------------------------------------------------------------------------
1-800-SCUDDER www.scudder.com
Convenient Automatic Investment Plan
ways to invest,
quickly and A convenient investment program in which money is
reliably electronically debited from your bank account monthly to
regularly purchase fund shares and "dollar cost average" --
buy more shares when the fund's price is lower and fewer
when it's higher, which can reduce your average purchase
price over time.*
Automatic Dividend Transfer
The most timely, reliable, and convenient way to purchase
shares -- use distributions from one Scudder fund to
purchase shares in another, automatically (accounts with
identical registrations or the same social security or tax
identification number).
QuickBuy
Lets you purchase Scudder fund shares electronically,
avoiding potential mailing delays; money for each of your
transactions is electronically debited from a previously
designated bank account.
Payroll Deduction and Direct Deposit
Have all or part of your paycheck -- even government checks
-- invested in up to four Scudder funds at one time.
* Dollar cost averaging involves continuous investment in
securities regardless of price fluctuations and does not
assure a profit or protect against loss in declining
markets. Investors should consider their ability to
continue such a plan through periods of low price
levels.
Around-the- Scudder Automated Information Line: SAIL(TM) --
clock electronic 1-800-343-2890
account
service and Personalized account information, the ability to exchange
information, or redeem shares, and information on other Scudder funds
including some and services via touchtone telephone.
transactions
Scudder's Web Site -- www.scudder.com
Personal Investment Organizer: Offering account information
and transactions, interactive worksheets, prospectuses and
applications for all Scudder funds, plus your current asset
allocation, whenever your need them. Scudder's site also
provides news about Scudder funds, retirement planning
information, and more.
30
<PAGE>
- --------------------------------------------------------------------------------
1-800-SCUDDER www.scudder.com
Retirees and Automatic Withdrawal Plan
those who depend
on investment You designate the bank account, determine the schedule (as
proceeds for frequently as once a month) and amount of the redemptions,
living expenses and Scudder does the rest.
can enjoy these
convenient, Distributions Direct
timely, and
reliable Automatically deposits your fund distributions into the
automated bank account you designate within three business days after
withdrawal each distribution is paid.
programs
QuickSell
Provides speedy access to your money by electronically
crediting your redemption proceeds to the bank account you
previously designated.
For more Call a Scudder representative at
information about 1-800-SCUDDER
these services
Or visit our Web site at
www.scudder.com
Please address The Scudder Funds
all written PO Box 2291
correspondence Boston, Massachusetts
to 02107-2291
31
<PAGE>
About the Fund's Adviser
Scudder Kemper Investments, Inc. is one of the largest and most experienced
investment management organizations worldwide, managing more than $290 billion
in assets globally for mutual fund investors, retirement and pension plans,
institutional and corporate clients, insurance companies, and private family and
individual accounts.
Scudder Kemper Investments has a rich heritage of innovation, integrity, and
client-focused service. In 1997, Scudder, Stevens & Clark, Inc., founded over 80
years ago as one of the nation's first investment counsel organizations, joined
the Zurich Financial Services Group. As a result, Zurich's subsidiary, Zurich
Kemper Investments, Inc., with 50 years of mutual fund and investment management
experience, was combined with Scudder. Headquartered in New York, Scudder Kemper
Investments offers a full range of investment counsel and asset management
capabilities, based on a combination of proprietary research and disciplined,
long-term investment strategies. With its global investment resources and
perspective, the firm seeks opportunities in markets throughout the world to
meet the needs of investors.
Scudder Kemper Investments, Inc., the global asset management firm, is a member
of the Zurich Financial Services Group. The Zurich Financial Services Group is
an internationally recognized leader in financial services, including
property/casualty and life insurance, reinsurance, and asset management.
This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
SCUDDER
INVESTMENTS(SM)
[LOGO]
PO Box 2291
Boston, MA 02107-2291
1-800-SCUDDER
www.scudder.com
A member of the [LOGO] Zurich Financial Group
