Filed electronically with the Securities and Exchange
Commission on December 3, 1996.
File No. 2-13627
File No. 811-42
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. 64
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 26
Scudder Portfolio Trust
(Exact Name of Registrant as Specified in Charter)
Two International Place, Boston, MA 02110-4103
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (617) 295-2567
Thomas F. McDonough
Scudder, Stevens & Clark, Inc.
Two International Place, Boston, MA 02110
(Name and Address of Agent for Service)
It is proposed that this filing will become effective
X immediately upon filing pursuant to paragraph (b)
-----
_____ on ______________ pursuant to paragraph (b)
_____ 60 days after filing pursuant to paragraph (a)(i)
_____ on __________ pursuant to paragraph (a)(i)
_____ 75 days after filing pursuant to paragraph (a)(ii)
_____ on __________ pursuant to paragraph (a)(ii) of Rule 485.
The Registrant has filed a declaration registering an indefinite amount of
securities pursuant to Rule 24f-2 under the Investment Company Act of 1940, as
amended. The Registrant filed the notice required by Rule 24f-2 for its most
recent fiscal year end on February 29, 1996.
<PAGE>
SCUDDER PORTFOLIO TRUST
SCUDDER INCOME FUND
CROSS-REFERENCE SHEET
Items Required By Form N-1A
<TABLE>
<CAPTION>
PART A
<S> <C> <C>
Item No. Item Caption Prospectus Caption
1. Cover Page COVER PAGE
2. Synopsis EXPENSE INFORMATION
3. Condensed Financial FINANCIAL HIGHLIGHTS
Information DISTRIBUTION AND PERFORMANCE INFORMATION
4. General Description of INVESTMENT OBJECTIVE AND POLICIES
Registrant WHY INVEST IN THE FUND?
ADDITIONAL INFORMATION ABOUT POLICIES AND INVESTMENTS
FUND ORGANIZATION
5. Management of the Fund FINANCIAL HIGHLIGHTS
A MESSAGE FROM SCUDDER'S CHAIRMAN
FUND ORGANIZATION--Investment adviser, Transfer agent
SHAREHOLDER BENEFITS--A team approach to investing
TRUSTEES AND OFFICERS
5A. Management's Discussion of NOT APPLICABLE
Fund Performance
6. Capital Stock and Other DISTRIBUTION AND PERFORMANCE INFORMATION-- Dividends and capital
Securities gains distributions
FUND ORGANIZATION
TRANSACTION INFORMATION--Tax information
SHAREHOLDER BENEFITS--SAIL(TM)--Scudder Automated Information Line,
Dividend reinvestment plan, T.D.D. service for the hearing
impaired
HOW TO CONTACT SCUDDER
7. Purchase of Securities PURCHASES
Being Offered FUND ORGANIZATION--Underwriter
TRANSACTION
INFORMATION--Purchasing
shares, Share price,
Processing time,
Minimum balances, Third
party transactions
SHAREHOLDER BENEFITS--Dividend reinvestment plan
SCUDDER TAX-ADVANTAGED RETIREMENT PLANS
INVESTMENT PRODUCTS AND SERVICES
8. Redemption or Repurchase EXCHANGES AND REDEMPTIONS
TRANSACTION INFORMATION--Redeeming shares, Tax identification
number, Minimum balances
9. Pending Legal Proceedings NOT APPLICABLE
Cross Reference - Page 1
<PAGE>
SCUDDER INCOME FUND
CROSS-REFERENCE SHEET
(continued)
PART B
Caption in Statement of
Item No. Item Caption Additional Information
10. Cover Page COVER PAGE
11. Table of Contents TABLE OF CONTENTS
12. General Information and History FUND ORGANIZATION
13. Investment Objectives and THE FUND'S INVESTMENT OBJECTIVE AND POLICIES
Policies PORTFOLIO TRANSACTIONS--Brokerage Commissions, Portfolio Turnover
14. Management of the Fund INVESTMENT ADVISER
TRUSTEES AND OFFICERS
REMUNERATION
15. Control Persons and Principal TRUSTEES AND OFFICERS
Holders of Securities
16. Investment Advisory and Other INVESTMENT ADVISER
Services DISTRIBUTOR
ADDITIONAL INFORMATION--Experts, Other Information
17. Brokerage Allocation and Other PORTFOLIO TRANSACTIONS--Brokerage Commissions, Portfolio Turnover
Practices
18. Capital Stock and Other FUND ORGANIZATION
Securities DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS
19. Purchase, Redemption and PURCHASES
Pricing of Securities Being EXCHANGES AND REDEMPTIONS
Offered FEATURES AND SERVICES OFFERED BY THE FUND--
Dividend and Capital Gain Distribution Options
SPECIAL PLAN ACCOUNTS
NET ASSET VALUE
20. Tax Status DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS
TAXES
21. Underwriters DISTRIBUTOR
22. Calculation of Performance Data PERFORMANCE INFORMATION
23. Financial Statements FINANCIAL STATEMENTS
Cross Reference - Page 2
<PAGE>
SCUDDER PORTFOLIO TRUST
SCUDDER BALANCED FUND
CROSS-REFERENCE SHEET
Items Required By Form N-1A
PART A
Item No. Item Caption Prospectus Caption
1. Cover Page COVER PAGE
2. Synopsis EXPENSE INFORMATION
3. Condensed Financial FINANCIAL HIGHLIGHTS
Information DISTRIBUTION AND PERFORMANCE INFORMATION
4. General Description of INVESTMENT OBJECTIVES AND POLICIES
Registrant WHY INVEST IN THE FUND?
ADDITIONAL INFORMATION ABOUT POLICIES AND INVESTMENTS
FUND ORGANIZATION
5. Management of the Fund FINANCIAL HIGHLIGHTS
A MESSAGE FROM SCUDDER'S CHAIRMAN
FUND ORGANIZATION--Investment adviser, Transfer agent
SHAREHOLDER BENEFITS--A team approach to investing
TRUSTEES AND OFFICERS
5A. Management's Discussion NOT APPLICABLE
of Fund Performance
6. Capital Stock and Other DISTRIBUTION AND PERFORMANCE INFORMATION--
Securities Dividends and capital gains distributions
FUND ORGANIZATION
TRANSACTION INFORMATION--Tax information
SHAREHOLDER BENEFITS--SAIL(TM)--Scudder Automated
Information Line, Dividend reinvestment plan, T.D.D. service
for the hearing impaired
HOW TO CONTACT SCUDDER
7. Purchase of Securities PURCHASES
Being Offered FUND ORGANIZATION--Underwriter
TRANSACTION INFORMATION--Purchasing shares, Share price,
Processing time, Minimum balances, Third party transactions
SHAREHOLDER BENEFITS--Dividend reinvestment plan
SCUDDER TAX-ADVANTAGED RETIREMENT PLANS
INVESTMENT PRODUCTS AND SERVICES
8. Redemption or Repurchase EXCHANGES AND REDEMPTIONS
TRANSACTION INFORMATION--Redeeming shares, Tax
identification number, Minimum balances
9. Pending Legal Proceedings NOT APPLICABLE
Cross Reference - Page 3
<PAGE>
SCUDDER BALANCED FUND
CROSS-REFERENCE SHEET
(continued)
PART B
Caption in Statement of
Item No. Item Caption Additional Information
10. Cover Page COVER PAGE
11. Table of Contents TABLE OF CONTENTS
12. General Information and History FUND ORGANIZATION
13. Investment Objectives and THE FUND'S INVESTMENT OBJECTIVES AND POLICIES
Policies PORTFOLIO TRANSACTIONS--Brokerage Commissions, Portfolio Turnover
14. Management of the Fund INVESTMENT ADVISER
TRUSTEES AND OFFICERS
REMUNERATION
15. Control Persons and Principal TRUSTEES AND OFFICERS
Holders of Securities
16. Investment Advisory and Other INVESTMENT ADVISER
Services DISTRIBUTOR
ADDITIONAL INFORMATION--Experts, Other Information
17. Brokerage Allocation and Other PORTFOLIO TRANSACTIONS--Brokerage Commissions, Portfolio Turnover
Practices
18. Capital Stock and Other FUND ORGANIZATION
Securities DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS
19. Purchase, Redemption and PURCHASES
Pricing of Securities Being EXCHANGES AND REDEMPTIONS
Offered FEATURES AND SERVICES OFFERED BY THE FUND--
Dividend and Capital Gain Distribution Options
SPECIAL PLAN ACCOUNTS
NET ASSET VALUE
20. Tax Status DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS
TAXES
21. Underwriters DISTRIBUTOR
22. Calculation of Performance Data PERFORMANCE INFORMATION
23. Financial Statements FINANCIAL STATEMENTS
Cross Reference - Page 4
<PAGE>
SCUDDER PORTFOLIO TRUST
SCUDDER HIGH YIELD BOND FUND
CROSS-REFERENCE SHEET
Items Required By Form N-1A
PART A
Item No. Item Caption Prospectus Caption
1. Cover Page COVER PAGE
2. Synopsis EXPENSE INFORMATION
3. Condensed Financial FINANCIAL HIGHLIGHTS
Information DISTRIBUTION AND PERFORMANCE INFORMATION
4. General Description of INVESTMENT OBJECTIVE AND POLICIES
Registrant WHY INVEST IN THE FUND?
ADDITIONAL INFORMATION ABOUT POLICIES AND INVESTMENTS
FUND ORGANIZATION
5. Management of the Fund FINANCIAL HIGHLIGHTS
A MESSAGE FROM SCUDDER'S CHAIRMAN
FUND
ORGANIZATION--Investment
adviser, Transfer agent
SHAREHOLDER BENEFITS--A team
approach to investing
TRUSTEES AND OFFICERS
5A. Management's Discussion of NOT APPLICABLE
Fund Performance
6. Capital Stock and Other DISTRIBUTION AND PERFORMANCE INFORMATION-- Dividends and capital
Securities gains distributions
FUND ORGANIZATION
TRANSACTION INFORMATION--Tax information
SHAREHOLDER BENEFITS--SAIL(TM)--Scudder Automated Information Line,
Dividend reinvestment plan, T.D.D. service for the hearing
impaired
HOW TO CONTACT SCUDDER
7. Purchase of Securities PURCHASES
Being Offered FUND ORGANIZATION--Underwriter
TRANSACTION
INFORMATION--Purchasing
shares, Share price,
Processing time,
Minimum balances, Third
party transactions
SHAREHOLDER BENEFITS--Dividend reinvestment plan
SCUDDER TAX-ADVANTAGED RETIREMENT PLANS
INVESTMENT PRODUCTS AND SERVICES
8. Redemption or Repurchase EXCHANGES AND REDEMPTIONS
TRANSACTION INFORMATION--Redeeming shares, Tax identification
number, Minimum balances
9. Pending Legal Proceedings NOT APPLICABLE
Cross Reference - Page 5
<PAGE>
SCUDDER HIGH YIELD BOND FUND
CROSS-REFERENCE SHEET
(continued)
PART B
Caption in Statement of
Item No. Item Caption Additional Information
10. Cover Page COVER PAGE
11. Table of Contents TABLE OF CONTENTS
12. General Information and History FUND ORGANIZATION
13. Investment Objectives and THE FUND'S INVESTMENT OBJECTIVE AND POLICIES
Policies PORTFOLIO TRANSACTIONS--Brokerage Commissions, Portfolio Turnover
14. Management of the Fund INVESTMENT ADVISER
TRUSTEES AND OFFICERS
REMUNERATION
15. Control Persons and Principal TRUSTEES AND OFFICERS
Holders of Securities
16. Investment Advisory and Other INVESTMENT ADVISER
Services DISTRIBUTOR
ADDITIONAL INFORMATION--Experts, Other Information
17. Brokerage Allocation and Other PORTFOLIO TRANSACTIONS--Brokerage Commissions, Portfolio Turnover
Practices
18. Capital Stock and Other FUND ORGANIZATION
Securities DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS
19. Purchase, Redemption and PURCHASES
Pricing of Securities Being EXCHANGES AND REDEMPTIONS
Offered FEATURES AND SERVICES OFFERED BY THE FUND--
Dividend and Capital Gain Distribution Options
SPECIAL PLAN ACCOUNTS
NET ASSET VALUE
20. Tax Status DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS
TAXES
21. Underwriters DISTRIBUTOR
22. Calculation of Performance Data PERFORMANCE INFORMATION
23. Financial Statements FINANCIAL STATEMENTS
</TABLE>
Cross Reference - Page 6
<PAGE>
Scudder High Yield Bond Fund
Supplement to Prospectus
Dated June 28, 1996
The following table includes selected data for a share outstanding
throughout the period (a) and other performance information derived
from the financial statements.
<TABLE>
<CAPTION>
For the Period
June 28, 1996
(commencement
of operations)
to August 31, 1996
(Unaudited)
<S> <C>
-------------------------------------------------------------------------------------------------
Net asset value, beginning of period $12.00
Income from investment operations:
Net investment income .18
Net realized and unrealized gain on investment transactions .12
Total from investment operations .30
Less distributions from net investment income (.18)
Redemption fee (Note A) (d) --
Net asset value, end of period $12.12
-------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
Total Return (%) (b) 2.51(c)**
Ratios and Supplemental Data
Net assets, end of period ($ millions) 19
Ratio of operating expenses, net to average daily net assets (%) 0.0
Ratio of operating expenses before expense reductions, to average daily net
assets (%) 4.15*
Ratio of net investment income to average daily net assets (%) 9.09*
Portfolio turnover rate (%) None
(a) Per share amounts have been calculated using the weighted average shares outstanding during the period.
(b) Total return is higher due to maintenance of the Fund's expenses.
(c) Total return does not reflect the effect of the 1% redemption fee on shares held less than one year.
(d) Redemption fees were less than one-half of $.01.
* Annualized
** Not annualized
-----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SCUDDER HIGH YIELD BOND FUND
Supplement to the Statement of Additional Information dated June 28, 1996.
The following text replaces the text under "Financial Statements" on page 58.
FINANCIAL STATEMENTS
The financial statements and notes, including the investment portfolio
of the High Yield Bond Fund, together with the Financial Highlights, are
incorporated by reference and attached hereto in the Semiannual Report to
Shareholders dated June 30, 1996, and are hereby deemed to be part of the
Statement of Additional Information.
November 1, 1996
<PAGE>
Scudder High Yield Bond Fund
Semiannual Report
August 31, 1996
Pure No-Load(TM) Funds
A pure no-load(TM) (no sales charges) mutual fund seeking a high level of
current income and, secondarily, capital appreciation through investment
primarily in below investment-grade domestic debt securities.
<PAGE>
Table of Contents
2 In Brief
3 Letter from the Fund's President
4 Portfolio Summary
5 Portfolio Management Discussion
7 Investment Portfolio
9 Financial Statements
12 Financial Highlights
13 Notes to Financial Statements
17 Officers and Trustees
18 Investment Products and Services
19 How to Contact Scudder
In Brief
o For the abbreviated semiannual period beginning with the Fund's June 28, 1996
inception and ending August 31, 1996, Scudder High Yield Bond Fund provided a
total return of 2.51%. The Fund's 30-day SEC yield at the end of the period was
9.53%.
o The Fund's fundamental investment approach has led to an underweighting in
debt of the most cyclical industries and a focus on issuers in such groups as
communications/media, oil and gas, chemicals, and basic industrials.
o The outlook for the high yield corporate bond market remains positive. Spreads
versus U.S. Treasury bonds continue to be attractive, and interest from buyers
such as insurance companies and pension funds should further aid demand.
2 - SCUDDER HIGH YIELD BOND FUND
<PAGE>
Letter From the Fund's President
Dear Shareholders,
We welcome you as an investor in Scudder High Yield Bond Fund and are
pleased to present the first shareholder report of the Fund, covering the
abbreviated semiannual period ended August 31, 1996. Going forward, you can
expect to receive regular reports including the annual report, which will follow
the February 28, 1997 conclusion of the Fund's fiscal year.
The Fund is off to a fine start and within just two months has grown to
over $18 million in assets. At the end of the period, the Fund's 30-day SEC
yield was 9.53%.
As outlined in the management discussion that follows, during the Fund's
initial two months of operation, the prices of lower-rated corporate bonds have
benefited from favorable economic conditions and strong demand. While investing
in these issues necessarily involves an additional element of risk, the credit
quality of the high yield market as a whole is greatly improved since the more
speculative days of the 1980s. This has attracted new investors, including
insurance companies and pension funds, reflecting the growing acceptance of high
yield bonds as a viable asset class. We believe Scudder High Yield Bond Fund
provides a carefully managed vehicle through which to access the opportunities
for high income and portfolio diversification offered by this market.
For those of you who like to stay informed about new funds offered by
Scudder, we introduced two new equity funds in September. Scudder Classic Growth
Fund seeks long-term capital appreciation with a higher degree of principal
stability than the average growth fund. Scudder 21st Century Growth Fund takes a
more aggressive approach, focusing primarily on emerging growth companies with
the potential to benefit from the rapidly changing industrial and economic
landscape that we foresee. For more information on these and other Scudder Fund
products and services, please turn to page 18.
Thank you for your interest and investment in Scudder High Yield Bond Fund.
Please do not hesitate to contact Investor Relations at 1-800-225-2470 with any
questions regarding your account.
Sincerely,
/s/Daniel Pierce
Daniel Pierce
President,
Scudder High Yield Bond Fund
3 - SCUDDER HIGH YIELD BOND FUND
<PAGE>
PORTFOLIO SUMMARY as of August 31, 1996
- -----------------------------
ASSET ALLOCATION
- -----------------------------
Corporate Bonds 81%
U.S. Government
Treasury Obligations 13%
Cash Equivalents 5%
Convertible Preferred
Stocks 1%
- -----------------------------
100%
=============================
The Fund's relatively high
position in cash and U.S.
Treasury obligations was
the temporary result of
asset flows into a new fund.
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- -----------------------------
DIVERSIFICATION (Corporate
Bonds & Conv. Pref. Stock)
- -----------------------------
Manufacturing 25%
Communications 14%
Media 14%
Consumer Staples 13%
Energy 11%
Consumer Discretionary 8%
Metals & Minerals 7%
Other 8%
- -----------------------------
100%
=============================
The Fund's focus on
credit analysis has lead to
significant positions in
such non-cyclical sectors
as manufacturing and
consumer staples.
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- -----------------------------
QUALITY
- -----------------------------
U.S. Government
Treasury Obligations 13%
Cash Equivalents 5%
BBB 2%
BB 16%
B 64%
- -----------------------------
100%
=============================
Weighted Average Quality: BB
The Fund is largely
invested in issues that are
of "B" quality according to
the major rating services.
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- -----------------------------
EFFECTIVE MATURITY
- -----------------------------
Less than 1 year 2%
1 - 5 years 45%
5 - 8 years 36%
8 years or greater 17%
- -----------------------------
100%
- -----------------------------
Weighted average effective
maturity: 5.72 years
A range of maturities are
represented in the portfolio.
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
For more complete details about the Fund's Investment Portfolio, see page 7.
A monthly Investment Portfolio Summary and quarterly Portfolio Holdings are
available upon request.
- -------------------------------------------------------------------------------
4 - SCUDDER HIGH YIELD BOND FUND
<PAGE>
Portfolio Management Discussion
Dear Shareholders,
For the abbreviated semiannual period beginning with the Fund's June 28, 1996
inception and ending August 31, 1996, Scudder High Yield Bond Fund provided a
total return (price appreciation plus income) of 2.51%. For the same two-month
period, the high yield bond market returned 1.72% as gauged by the unmanaged
Merrill Lynch High Yield Master Index.
Favorable Market Environment
The period covered by this report saw a continuation of the favorable conditions
for lower-rated corporate bonds that have prevailed throughout 1996. High yield
bonds as a group tend to respond to many of the same factors that influence
stocks, and their prices have been the beneficiary of a stronger-than-expected
economy and generally rising U.S. stock market. Economic strength has helped
create a favorable credit outlook for many issuers of lower-rated debt, while at
the same time a benign rate of inflation has made real yields on these issues
all the more attractive.
Supply and demand factors have also provided a tailwind for high yield
investors. The volume of new issues was low for both July and August, and the
calendar for the rest of 1996 appears light as well. On the demand side, strong
mutual fund inflows and increased interest from institutional investors that
have not historically been significant buyers, including pension plans and
insurance companies, have provided a strong underpinning for high yield issues.
These favorable economic conditions and technical factors have been reflected in
higher prices and a tightening of the still significant yield advantage provided
by lower-rated corporates versus U.S. Treasury issues of comparable maturity
(and higher quality). For example, the yield advantage versus the comparable
U.S. Treasury provided by a typical ten-year B-rated corporate bond fell from
nearly 500 basis points (five percentage points) at the start of 1996 to under
400 basis points at the end of August, continuing the trend in place since 1991
(see accompanying chart).
THE PRINTED DOCUMENT CONTAINS A LINE CHART HERE
LINE CHART TITLE:
Price Strength has Narrowed the
Yield Advantage:
Yield Differential of B-rated Corporates vs.
U.S. Treasury Bonds of Comparable Maturity
LINE CHART DATA:
Yield Differential
(Basis Points)
--------------------------------
1/87 516
--------------------------------
470
--------------------------------
448
--------------------------------
420
--------------------------------
1/88 521
--------------------------------
516
--------------------------------
511
--------------------------------
519
--------------------------------
1/89 476
--------------------------------
527
--------------------------------
597
--------------------------------
693
--------------------------------
1/90 716
--------------------------------
724
--------------------------------
787
--------------------------------
1026
--------------------------------
1/91 1055
--------------------------------
728
--------------------------------
626
--------------------------------
603
--------------------------------
1/92 640
--------------------------------
418
--------------------------------
449
--------------------------------
513
--------------------------------
1/93 491
--------------------------------
398
--------------------------------
407
--------------------------------
474
--------------------------------
1/94 423
--------------------------------
416
--------------------------------
401
--------------------------------
381
--------------------------------
1/95 415
--------------------------------
427
--------------------------------
486
--------------------------------
474
--------------------------------
1/96 528
--------------------------------
435
--------------------------------
406
--------------------------------
8/96 380
--------------------------------
Source: Lehman Brothers High Yield Research
Focus on Credit Analysis
In this environment, we have set about the process of building a portfolio of
companies that we believe have positive credit outlooks. Our goal is not merely
to avoid defaults on securities held by the Fund, but also to identify companies
5 - SCUDDER HIGH YIELD BOND FUND
<PAGE>
that are candidates for receiving a credit upgrade from the major rating
agencies. The upgrading of an issuer's credit rating is frequently accompanied
by an increase in the prices of its outstanding debt issues. This boost can
occur when a B-rated issue is upgraded to "BB" or when a BB-rated issue becomes
investment grade (bonds rated "BBB" and above are considered investment grade).
Our focus in managing the Fund is on individual security selection; however, our
fundamental analysis has led us to focus the portfolio on issuers in such
industries as communications/media, oil and gas, chemicals, and basic
industrials. The portfolio is currently underweighted in so-called "cyclical"
industries that are most likely to be adversely affected by any weakening in the
economy that may occur going forward. These would include groups such as retail,
paper/forest products, and homebuilders.
At the end of August, Fund assets totaled more than $18 million and were
invested in 35 high yield corporate issues. The Fund's relatively high position
in cash and U.S. Treasury issues at the end of the period reflects the fact
that, as a new fund, money coming into the Fund from investors has been
relatively high as a proportion of total assets, and takes time to invest.
Nonetheless, the Fund offered a 30-day SEC yield of 9.53% at the end of August,
supported in part by Scudder's waiving payment and reimbursement of all fees and
expenses.
Market Outlook
Remains Positive
The outlook for the high yield corporate bond market remains positive. While
spreads versus U.S. Treasury bonds have moved somewhat towards the narrow end of
their historical range, they continue to be attractive. Moreover, it appears
that non-traditional buyers such as insurance companies will play an increasing
role in the lower-rated debt market going forward, further supporting demand.
Given the current level of the stock market, there is always the risk of a
correction in equities that would spark a "flight to quality" and negatively
impact high yield market sentiment, but we believe this is by no means
inevitable.
In its first two months of operation, Scudder High Yield Bond Fund has provided
competitive returns while building a portfolio of high yield issues based on
fundamental analysis. We will continue to seek high income and capital
appreciation from a carefully selected portfolio of lower-rated corporate bonds.
The Fund remains suitable for investors willing to assume a measure of extra
risk in pursuit of higher income, or for investors seeking to add an additional
element of diversification to a well-rounded investment portfolio.
Sincerely,
Your Portfolio Management Team
/s/Kelly D. Babson /s/Christopher L. Gootkind
Kelly D. Babson Christopher L. Gootkind
/s/Stephen A. Wohler
Stephen A. Wohler
6 - SCUDDER HIGH YIELD BOND FUND
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO AS OF AUGUST 31, 1996 (UNAUDITED)
<CAPTION>
PRINCIPAL MARKET
AMOUNT($) VALUE($)
- --------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 4.8%
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Repurchase Agreement with State Street Bank and Trust Company
dated 8/30/96 at 5.23%, to be repurchased at $931,541 on
9/3/96, collateralized by a $905,000 U.S. Treasury Bond, ---------
7.5%, 11/15/16 (Cost $931,000) .............................................. 931,000 931,000
---------
U. S. GOVERNMENT TREASURY OBLIGATIONS 12.8%
- --------------------------------------------------------------------------------------------------------
U.S. Treasury Note, 6.625%, 7/31/01 (Cost $2,508,135) ......................... 2,500,000 2,488,675
---------
CORPORATE BONDS 81.0%
- --------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY 6.9%
Cinemark USA, Inc., Senior Subordinated Note, 9.625%, 8/1/08 .................. 500,000 497,500
Red Roof Inns, Inc., Senior Note, 9.625%, 12/15/03 ............................ 350,000 336,000
Revlon Consumer Products, Senior Subordinated Note, Series B, 10.5%, 2/15/03 .. 500,000 516,250
---------
1,349,750
---------
CONSUMER STAPLES 10.5%
American Safety Razor Co., Senior Note, 9.875%, 8/1/05 ........................ 500,000 513,750
Bruno's, Inc., Senior Subordinated Note, 10.5%, 8/1/05 ........................ 500,000 506,250
Chiquita Brands International Inc., Senior Note, 10.25%, 11/1/06 .............. 500,000 515,000
WestPoint Stevens Inc., Senior Subordinated Debenture, 9.375%, 12/15/05 ....... 500,000 495,000
---------
2,030,000
---------
COMMUNICATIONS 11.6%
MFS Communications Co., Inc., Step-up Coupon, 1/15/06 ......................... 500,000 338,125
Paging Network. Inc., Senior Subordinated Note, 10.125%, 8/1/07 ............... 400,000 404,000
Sprint Spectrum L.P., Senior Note, 11%, 8/15/06 ............................... 1,000,000 1,010,000
Teleport Communications Group Inc., Senior Note, 9.875%, 7/1/06 ............... 500,000 501,250
---------
2,253,375
---------
FINANCIAL 2.8%
Olympic Financial Ltd., Senior Note, 13%, 5/1/00 .............................. 500,000 542,500
---------
MEDIA 11.6%
Adelphia Communications Corp., Senior Note, 12.5%, 5/15/02 .................... 500,000 515,000
Cablevision Systems Corp., Senior Subordinated Note, 10.75%, 4/1/04 ........... 250,000 256,250
Cablevision Systems Corp., Senior Subordinated Note, 9.875%, 5/15/06 .......... 250,000 243,750
Heritage Media Corp., Senior Subordinated Note, 8.75%, 2/15/06 ................ 400,000 372,000
K-III Communications Corp., Senior Note, 10.25%, 6/1/04 ....................... 400,000 408,000
Tele-Communications, Inc., Senior Note, 7.25%, 8/1/05 ......................... 500,000 457,515
---------
2,252,515
---------
MANUFACTURING 20.2%
Aetna Industries, Inc., Senior Note, 11.875%, 10/1/06 ......................... 500,000 497,500
</TABLE>
The accompanying notes are an integral part of the financial statements.
7 - SCUDDER HIGH YIELD BOND FUND
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT($) VALUE($)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Borden Chemicals & Plastics, L.P., Note, 9.5%, 5/1/05 ......................... 250,000 248,750
Foamex L.P., Senior Subordinated Debenture, 11.875%, 10/1/04 .................. 500,000 525,000
G-I Holdings, Senior Note, Series B, 10%, 2/15/06 ............................. 250,000 243,125
K&F Industries, Inc., Subordinated Note, 10.375%, 9/1/04 ...................... 250,000 253,750
Lear Corp., Subordinated Note, 9.5%, 7/15/06 .................................. 300,000 309,000
NL Industries, Inc., Senior Note, 11.75%, 10/15/03 ............................ 500,000 518,750
Pierce Leahy Corp., Senior Subordinated Note, 11.125%, 7/15/06 ................ 500,000 520,000
Specialty Equipment Co., Senior Subordinated Note, 11.375%, 12/1/03 ........... 750,000 802,500
----------
3,918,375
----------
ENERGY 9.3%
Cliffs Drilling Co., Senior Note, 10.25%, 5/15/03 ............................. 500,000 508,750
Forest Oil Corp.,Senior Subordinated Note, 11.25%, 9/1/03 ..................... 250,000 265,625
MESA Operating Co., Company Guarantee, 10.625%, 7/1/06 ........................ 500,000 522,500
Nuevo Energy Co., Senior Subordinated Note, 9.5%, 4/15/06 ..................... 500,000 502,500
----------
1,799,375
----------
METALS & MINERALS 5.4%
Oregon Steel Mills, Inc., 1st Mortgage, 11%, 6/15/03 .......................... 500,000 528,750
Renco Metals Inc., Senior Note, 11.5%, 7/1/03 ................................. 500,000 526,250
----------
1,055,000
----------
CONSTRUCTION 2.7%
Schuller International Group, Senior Note, 10.875%, 12/15/04 .................. 250,000 271,250
Southdown, Inc., Senior Subordinated Note, 10%, 3/1/06 ........................ 250,000 251,875
----------
523,125
- --------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS (COST $15,548,185) 15,724,015
- --------------------------------------------------------------------------------------------------------
SHARES
- --------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS 1.4%
- --------------------------------------------------------------------------------------------------------
FINANCIAL
----------
Criimi Mae, Inc., "B", 10.875% (Cost $250,000) ................................ 10,000 267,500
----------
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT PORTFOLIO -- 100.0% (Cost $19,237,320)(a) 19,411,190
- --------------------------------------------------------------------------------------------------------
<FN>
(a) The cost for federal income tax purposes was $19,237,320. At August 31, 1996, net unrealized
appreciation for all securities based on tax cost was $173,870. This consisted of aggregate gross
unrealized appreciation for all securities in which there was an excess of market value over tax cost
of $224,189 and aggregate gross unrealized depreciation for all securities in which there was an
excess of tax cost over market value of $50,319.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
8 - SCUDDER HIGH YIELD BOND FUND
<PAGE>
FINANCIAL STATEMENTS
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 1996 (UNAUDITED)
<CAPTION>
ASSETS
- -------------------------------------------------------------------------------------
<S> <C>
Investments, at market (identified cost $19,237,320) (Note A) .... $19,411,190
Cash ............................................................. 623
Receivable on Fund shares sold ................................... 157,366
Interest receivable .............................................. 324,064
Due from Adviser (Note C) ........................................ 47,908
Deferred organization expense (Note A) ........................... 21,359
-----------
Total assets ..................................................... 19,962,510
LIABILITIES
- -------------------------------------------------------------------------------------
Payable for investments purchased ................................ $ 1,071,582
Payable for Fund shares redeemed ................................. 1,402
Dividends ........................................................ 24,397
Accrued expenses (Note C) ........................................ 69,017
-----------
Total liabilities ................................................ 1,166,398
-------------------------------------------------------------------------------
NET ASSETS, AT MARKET VALUE $18,796,112
-------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------
Net assets consist of:
Net unrealized appreciation on investments ....................... $ 173,870
Shares of beneficial interest .................................... 15,503
Additional paid-in capital ....................................... 18,606,739
-------------------------------------------------------------------------------
NET ASSETS, AT MARKET VALUE $18,796,112
-------------------------------------------------------------------------------
NET ASSET VALUE
- -------------------------------------------------------------------------------------
NET ASSET VALUE, offering and redemption price (Note A)
per share ($18,796,112/1,550,262 outstanding shares of
beneficial interest, $.01 par value, unlimited number of -----------
shares authorized) ............................................. $ 12.12
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
9 - SCUDDER HIGH YIELD BOND FUND
<PAGE>
STATEMENT OF OPERATIONS
<TABLE>
FOR THE PERIOD JUNE 28, 1996 (COMMENCEMENT
OF OPERATIONS) TO AUGUST 31, 1996 (UNAUDITED)
<CAPTION>
INVESTMENT INCOME
- -------------------------------------------------------------------------------
<S> <C>
Income:
Interest ..................................................... $181,932
Expenses:
Management fees (Note C) ..................................... 13,847
Services to shareholders (Note C) ............................ 15,176
Custodian and accounting fees (Note C) ....................... 12,910
Trustees' fees and expenses (Note C) ......................... 8,960
Auditing ..................................................... 6,825
State registration ........................................... 6,746
Federal registration ......................................... 6,486
Reports to shareholders ...................................... 5,862
Legal ........................................................ 3,283
Amortization of organization expense (Note A) ................ 789
Other ........................................................ 2,142
--------
Total expenses before reductions ............................. 83,026
Expense reductions (Note C) .................................. (83,026)
--------
Expenses, net ................................................ --
-------------------------------------------------------------------------
NET INVESTMENT INCOME 181,932
-------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------
Net unrealized appreciation during the period on investments . 173,870
--------
Net gain on investment transactions .......................... 173,870
-------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $355,802
-------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
10 - SCUDDER HIGH YIELD BOND FUND
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
FOR THE PERIOD
JUNE 28, 1996
(COMMENCEMENT
OF OPERATIONS)
TO AUGUST 31,
1996
INCREASE (DECREASE) IN NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
<S> <C>
Operations:
Net investment income ..................................... $ 181,932
Net unrealized appreciation on investment
transactions during the period .......................... 173,870
-----------
Net increase in net assets resulting from operations ...... 355,802
-----------
Distributions to shareholders from net investment income .. (181,932)
-----------
Fund share transactions:
Proceeds from shares sold ................................. 18,529,512
Net asset value of shares issued to shareholders in
reinvestment of distributions ........................... 150,530
Cost of shares redeemed ................................... (59,412)
Redemption fees (Note A) .................................. 412
-----------
Net increase in net assets from Fund share transactions ... 18,621,042
-----------
INCREASE IN NET ASSETS .................................... 18,794,912
Net assets at beginning of period ......................... 1,200
-----------
NET ASSETS AT END OF PERIOD ............................... $18,796,112
-----------
OTHER INFORMATION
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN FUND SHARES
Shares outstanding at beginning of period ................. 100
-----------
Shares sold ............................................... 1,542,534
Shares issued to shareholders in reinvestment
of distributions ........................................ 12,493
Shares redeemed ........................................... (4,865)
-----------
Net increase in Fund shares ............................... 1,550,162
-----------
Shares outstanding at end of period ....................... 1,550,262
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
11 - SCUDDER HIGH YIELD BOND FUND
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
The following table includes selected data for a share outstanding throughout
the period (a) and other performance information derived from the financial
statements.
<CAPTION>
FOR THE PERIOD
JUNE 28, 1996
(COMMENCEMENT
OF OPERATIONS) TO
AUGUST 31, 1996
(UNAUDITED)
- --------------------------------------------------------------------------------
<S> <C>
------
Net asset value, beginning of period .............................. $12.00
------
Income from investment operations:
Net investment income .............................................. .18
Net realized and unrealized gain on investment transactions ........ .12
------
Total from investment operations ................................... .30
------
Less distributions from net investment income ...................... (.18)
Redemption fee (Note A)(d) ......................................... --
------
Net asset value, end of period ..................................... $12.12
- --------------------------------------------------------------------------------
TOTAL RETURN (%)(b) ................................................ 2.51(c)**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period ($ millions) ............................. 19
Ratio of operating expenses, net to average daily net assets (%) ... 0.0
Ratio of operating expenses before expense reductions, to
average daily net assets (%) ..................................... 4.15*
Ratio of net investment income to average daily net assets (%) ..... 9.09*
Portfolio turnover rate (%) ........................................ None
<FN>
(a) Per share amounts have been calculated using the weighted average shares
outstanding during the period.
(b) Total return is higher due to maintenance of the Fund's expenses.
(c) Total return does not reflect the effect of the 1% redemption fee on shares
held less than one year.
(d) Redemption fees were less than one-half of $.01.
* Annualized
** Not annualized
</FN>
</TABLE>
12 - SCUDDER HIGH YIELD BOND FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
A. SIGNIFICANT ACCOUNTING POLICIES
Scudder High Yield Bond Fund (the "Fund") is a diversified series of Scudder
Portfolio Trust (the "Trust"). The Trust is organized as a Massachusetts
business trust and is registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management estimates.
The policies described below are followed by the Fund in the preparation of its
financial statements.
SECURITY VALUATION. Portfolio debt securities with remaining maturities greater
than sixty days are valued by pricing agents approved by the officers of the
Fund, which 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. Short-term investments having a maturity of sixty days or less
are valued at amortized cost.
Portfolio securities which are traded on U.S. stock exchanges are valued at the
most recent sale price reported on the exchange on which the security is traded
most extensively. If no sale occurred, the security is then valued at the
calculated mean between the most recent bid and asked quotations. If there are
no such bid and asked quotations, the most recent bid quotation is used.
Securities quoted on the National Association of Securities Dealers Automatic
Quotation ("NASDAQ") System, for which there have been sales, are valued at the
most recent sale price reported on such system. If there are no such sales, the
value is the high or "inside" bid quotation. Securities which are not quoted on
the NASDAQ System but are traded in another over-the-counter market are valued
at the most recent sale price on such market. If no sale occurred, the security
is then valued at the calculated mean between the most recent bid and asked
quotations. If there are no such bid and asked quotations, the most recent bid
quotation shall be used.
All other securities are valued at their fair value as determined in good faith
by the Valuation Committee of the Board of Trustees.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
certain banks and broker/dealers whereby the Fund, through its custodian,
receives delivery of the underlying securities, the amount of which at the time
of purchase and each subsequent business day is required to be maintained at
such a level that the market value, depending on the maturity of the repurchase
agreement and the underlying collateral, is equal to at least 100.5% of the
resale price.
FEDERAL INCOME TAXES. The Fund's policy is to comply with the requirements of
the Internal Revenue Code which are applicable to regulated investment companies
and to distribute all of its taxable income to its shareholders. The Fund
accordingly paid no federal income taxes and no federal income tax provision was
required.
REDEMPTION FEES. In general, shares of the Fund may be redeemed at net asset
value. However, upon the redemption or exchange of shares held by shareholders
for less than one year, a fee of 1% of the lower of cost or the current net
asset value of the shares will be assessed and retained by the Fund for the
benefit of the remaining shareholders. The redemption fee is accounted for as an
addition to paid-in capital.
DISTRIBUTION OF INCOME AND GAINS. Distributions of net investment income are
declared daily and distributed monthly. During any particular year net realized
gains from investment transactions, in excess of available capital loss
carryforwards, would be taxable to the Fund if not distributed and, therefore,
will be distributed to shareholders. An additional distribution may be made to
the extent necessary to avoid the payment of a four percent federal excise tax.
13 - SCUDDER HIGH YIELD BOND FUND
<PAGE>
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. As a result, net
investment income (loss) and net realized gain (loss) on investment transactions
for a reporting period may differ significantly from distributions during such
period. Accordingly, the Fund may periodically make reclassifications among
certain of its capital accounts without impacting the net asset value of the
Fund.
The Fund uses the identified cost method for determining realized gain or loss
on investments for both financial and federal income tax reporting purposes.
ORGANIZATION COSTS. Costs incurred by the Fund in connection with its
organization have been deferred and are being amortized on a straight-line basis
over a five-year period.
OTHER. Investment security transactions are accounted for on a trade-date basis.
Distributions to shareholders are recorded on the ex-dividend date. Interest
income is recorded on the accrual basis. All original issue discounts are
accreted for both tax and financial reporting purposes.
B. PURCHASES AND SALES OF SECURITIES
For the period June 28, 1996 (commencement of operations) to August 31, 1996,
purchases of investment securities (excluding short-term investments and U.S.
Government obligations) aggregated $15,793,265. Purchases of U.S. Government
obligations aggregated $2,508,135. There were no sales of investment securities
(excluding short-term investments).
C. RELATED PARTIES
Under the Investment Management Agreement (the "Agreement") with Scudder,
Stevens & Clark, Inc. (the "Adviser"), the Fund pays the Adviser a fee equal to
an annual rate of 0.70% of the Fund's average daily net assets, computed and
accrued daily and payable monthly. As manager of the assets of the Fund, 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 Agreement also provides that if the Fund's expenses, exclusive of
taxes, interest, and extraordinary expenses, exceed specified limits, such
excess, up to the amount of the management fee, will be paid by the Adviser. In
addition, the Adviser has agreed not to impose all or a portion of its
management fee until June 30, 1997 in order to maintain the annualized expenses
of the Fund at not more than 0.0% of average daily net assets. For the period
June 28, 1996 (commencement of operations) to August 31, 1996, the Adviser did
not impose all of its management fee amounting to $13,847. Further, due to the
limitations of such Agreement, the Adviser's reimbursement payable to the Fund
for the period June 28, 1996 (commencement of operations) to August 31, 1996,
amounted to $47,908.
Scudder Service Corporation ("SSC"), a subsidiary of the Adviser, is the
transfer, dividend paying and shareholder service agent for the Fund. For the
period June 28, 1996 (commencement of operations) to August 31, 1996, SSC did
not impose any of its fee amounting to $8,598.
Scudder Trust Company ("STC"), a subsidiary of the Adviser, provides
recordkeeping and other services in connection with certain retirement and
employee benefit plans invested in the Fund. For the period June 28, 1996
(commencement of operations) to August 31, 1996, STC did not impose any of its
fee amounting to $255.
14 - SCUDDER HIGH YIELD BOND FUND
<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 period June
28, 1996 (commencement of operations) to August 31, 1996, SFAC did not impose
any of its fee amounting to $6,418.
The Fund pays each of its Trustees not affiliated with the Adviser $4,000
annually, plus specified amounts for attended board and committee meetings. For
the period June 28, 1996 (commencement of operations) to August 31, 1996, the
Trustees did not impose a portion of their fee amounting to $6,000, and the fee
imposed amounted to $2,960.
15 - SCUDDER HIGH YIELD BOND FUND
<PAGE>
This Page intentionally left blank.
16 - SCUDDER HIGH YIELD BOND FUND
<PAGE>
<PAGE>
Officers and Trustee
Daniel Pierce*
President and Trustee
Henry P. Becton, Jr.
Trustee; President and General Manager, WGBH Educational Foundation
Dudley H. Ladd*
Trustee
David S. Lee*
Vice President and Trustee
George M. Lovejoy, Jr.
Trustee; President and Director,
Fifty Associates
Wesley W. Marple, Jr.
Trustee; Professor of Business Administration,
Northeastern University, College of Business Administration
Jean C. Tempel
Trustee; General Partner, TL Ventures
Jerard K. Hartman*
Vice President
William M. Hutchinson*
Vice President
Thomas W. Joseph*
Vice President
Valerie F. Malter*
Vice President
Thomas F. McDonough*
Vice President, Secretary and
Assistant Treasurer
Pamela A. McGrath*
Vice President and Treasurer
Edward J. O'Connell*
Vice President and Assistant Treasurer
Coleen Downs Dinneen*
Assistant Secretary
*Scudder, Stevens & Clark, Inc.
17 - SCUDDER HIGH YIELD BOND FUND
<PAGE>
Investment Products and Services
The Scudder Family of Funds
Money Market
Scudder Cash Investment Trust
Scudder U.S. Treasury Money Fund
Tax Free Money Market+
Scudder Tax Free Money Fund
Scudder California Tax Free Money Fund*
Scudder New York Tax Free Money Fund*
Tax Free+
Scudder California Tax Free Fund*
Scudder High Yield Tax Free Fund
Scudder Limited Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder Massachusetts Limited Term
Tax Free Fund*
Scudder Massachusetts Tax Free Fund*
Scudder Medium Term Tax Free Fund
Scudder New York Tax Free Fund*
Scudder Ohio Tax Free Fund*
Scudder Pennsylvania Tax Free Fund*
Growth and Income
Scudder Balanced Fund
Scudder Growth and Income Fund
Income
Scudder Emerging Markets Income Fund
Scudder Global Bond Fund
Scudder GNMA Fund
Scudder High Yield Bond Fund
Scudder Income Fund
Scudder International Bond Fund
Scudder Short Term Bond Fund
Scudder Zero Coupon 2000 Fund
Growth
Scudder Capital Growth Fund
Scudder Classic Growth Fund
Scudder Development Fund
Scudder Emerging Markets Growth Fund
Scudder Global Discovery Fund
Scudder Global Fund
Scudder Gold Fund
Scudder Greater Europe Growth Fund
Scudder International Fund
Scudder Latin America Fund
Scudder Micro Cap Fund
Scudder Pacific Opportunities Fund
Scudder Quality Growth Fund
Scudder Small Company Value Fund
Scudder 21st Century Growth Fund
Scudder Value Fund
The Japan Fund
Retirement Plans and Tax-Advantaged Investments
IRAs
Keogh Plans
Scudder Horizon Plan*+++ (a variable annuity)
401(k) Plans
403(b) Plans
SEP-IRAs
Profit Sharing and Money Purchase
Pension Plans
Closed-End Funds#
The Argentina Fund, Inc.
The Brazil Fund, Inc.
The First Iberian Fund, Inc.
The Korea Fund, Inc.
The Latin America Dollar Income Fund, Inc.
Montgomery Street Income Securities, Inc.
Scudder New Asia Fund, Inc.
Scudder New Europe Fund, Inc.
Scudder World Income Opportunities
Fund, Inc.
Institutional Cash Management
Scudder Institutional Fund, Inc.
Scudder Fund, Inc.
Scudder Treasurers Trust(TM)++
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. +A portion of the income from the tax-free funds may
be subject to federal, state, and local taxes. *Not available in all states.
+++A no-load variable annuity contract provided by Charter National Life
Insurance Company and its affiliate, offered by Scudder's insurance agencies,
1-800-225-2470. #These funds, advised by Scudder, Stevens & Clark, Inc., are
traded on various stock exchanges. ++For information on Scudder Treasurers
Trust,(TM) an institutional cash management service that utilizes certain
portfolios of Scudder Fund, Inc. ($100,000 minimum), call 1-800-541-7703.
18 - SCUDDER HIGH YIELD BOND FUND
<PAGE>
How to Contact Scudder
Account Service and Information
- --------------------------------------------------------------------------------
For existing account service and transactions
Scudder Investor Relations
1-800-225-5163
For personalized information about your Scudder accounts;
exchanges and redemptions; or information on any Scudder fund
Scudder Automated Information Line (SAIL)
1-800-343-2890
Investment Information
- --------------------------------------------------------------------------------
To receive information about the Scudder funds, for additional
applications and prospectuses, or for investment questions
Scudder Investor Relations
1-800-225-2470
For establishing 401(k) and 403(b) plans
Scudder Defined Contribution Services
1-800-323-6105
Please address all correspondence to
- --------------------------------------------------------------------------------
The Scudder Funds
P.O. Box 2291
Boston, Massachusetts
02107-2291
Visit the Scudder World Wide Web Site at:
- --------------------------------------------------------------------------------
http://funds.scudder.com
Or Stop by a Scudder Funds Center
- --------------------------------------------------------------------------------
Many shareholders enjoy the personal, one-on-one service of the
Scudder Funds Centers. Check for a Funds Center near you--they
can be found in the following cities:
Boca Raton New York
Boston Portland, OR
Chicago San Diego
Cincinnati San Francisco
Los Angeles Scottsdale
For information on Scudder Treasurers Trust(TM), an
institutional cash management service for corporations,
non-profit organizations and trusts which utilizes certain
portfolios of Scudder Fund, Inc.* ($100,000 minimum), call:
1-800-541-7703.
For information on Scudder Institutional Funds*, funds designed
to meet the broad investment management and service needs of
banks and other institutions, call:
1-800-854-8525.
Scudder Investor Relations and Scudder Funds Centers are services provided
through Scudder Investor Services, Inc., Distributor.
* Contact Scudder Investor Services, Inc., Distributor, to receive a prospectus
with more complete information, including management fees and expenses. Please
read it carefully before you invest or send money.
19 - SCUDDER HIGH YIELD BOND FUND
<PAGE>
Celebrating Over 75 Years of Serving Investors
Established in 1919 by Theodore Scudder, Sidney Stevens, and F. Haven Clark,
Scudder, Stevens & Clark was the first independent investment counsel firm in
the United States. Since its birth, Scudder's pioneering spirit and commitment
to professional long-term investment management have helped shape the investment
industry. In 1928, we introduced the nation's first no-load mutual fund. Today
we offer over 40 pure no load(TM) funds, including the first international
mutual fund offered to U.S. investors.
Over the years, Scudder's global investment perspective and dedication to
research and fundamental investment disciplines have helped us become one of the
largest and most respected investment managers in the world. Though times have
changed since our beginnings, we remain committed to our long-standing
principles: managing money with integrity and distinction; keeping the interests
of our clients first; providing access to investments and markets that may not
be easily available to individuals; and making investing as simple and
convenient as possible through friendly, comprehensive service.
This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
SCUDDER
<PAGE>
SCUDDER PORTFOLIO TRUST
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
- -------- ---------------------------------
<TABLE>
<CAPTION>
a. Financial Statements
<S> <C> <C>
Included in Part A:
For Scudder Income Fund:
Financial Highlights for the ten fiscal years ended December 31, 1995.
(Incorporated by reference to Post-Effective Amendment No. 62 to the Registration
Statement.)
For Scudder Balanced Fund:
Financial Highlights for the period January 4, 1993 (commencement of operations) to
December 31, 1993 and for the two fiscal years ended December 31, 1995.
(Incorporated by reference to Post-Effective Amendment No. 62 to the Registration Statement.)
For Scudder High Yield Bond Fund:
Financial Highlights for the period June 28, 1996 (commencement of operations) to August
31, 1996 is filed herein.
Included in Part B:
For Scudder Income Fund:
Investment Portfolio as of December 31, 1995
Statement of Assets and Liabilities as of December 31, 1995
Statement of Operations for the fiscal year ended December 31, 1995
Statements of Changes in Net Assets for the two fiscal years ended December 31, 1995
Financial Highlights for the ten fiscal years ended December 31, 1995
Notes to Financial Statements Report of Independent Accountants
(Incorporated by reference to Post-Effective Amendment No. 62 to the
Registration Statement.)
For Scudder Balanced Fund:
Investment Portfolio as of December 31, 1995
Statement of Assets and Liabilities as of December 31, 1995
Statement of Operations for the fiscal year ended December 31, 1995
Statement of Changes in Net Assets for the two fiscal years ended December 31, 1995
Financial Highlights for the period January 4, 1993 (commencement of operations) to
December 31, 1993 and for the fiscal year ended December 31, 1995
Notes to Financial Statements Report of Independent Accountants
(Incorporated by reference to Post-Effective Amendment No. 62 to the Registration
Statement.)
Part C - Page 1
<PAGE>
For Scudder High Yield Bond Fund:
Investment Portfolio as of August 31, 1996
Statement of Assets and Liabilities as of August 31, 1996
Statement of Operations for the period June 28, 1996 (commencement of
operations) to August 31, 1996
Statement of Changes in Net Assets for the period June 28, 1996
(commencement of operations) to August 31, 1996
Financial Highlights for the period June 28, 1996 (commencement of
operations) to August 31, 1996
Notes to Financial Statements (Filed herein.)
Statements, schedules and historical information other than those listed above have been omitted
since they are either not applicable or are not required.
b. Exhibits:
All references are to the Registrant's Registration Statement on Form N-1A filed with
the Securities and Exchange Commission. File Nos. 2-13627 and 811-42 (the
"Registration Statement").
1. (a)(1) Amended and Restated Declaration of Trust dated November 3, 1987 is
incorporated by reference to Post-Effective Amendment No. 52 to the
Registration Statement ("Post-Effective Amendment No. 52").
(a)(2) Amendment to Amended and Restated Declaration of Trust dated
November 13, 1990 is incorporated by reference to Post-Effective
Amendment No. 52.
(a)(3) Certificate of Amendment of Declaration of Trust dated October 13,
1992 is incorporated by reference to Post-Effective Amendment No. 54
to the Registration Statement ("Post-Effective Amendment No. 54").
(a)(4) Establishment and Designation of Series dated October 13, 1992 is
incorporated by reference to Post-Effective Amendment No. 54.
(a)(5) Establishment and Designation of Series dated April 9, 1996 is
incorporated by reference to Post-Effective Amendment No. 61.
2. (a)(1) By-Laws of the Registrant dated September 20, 1984 are incorporated
by reference to Post-Effective Amendment No. 45 to the Registration
Statement.
(a)(2) Amendment to By-Laws of the Registrant dated August 13, 1991 is
incorporated by reference to Post-Effective Amendment No. 53 to the
Registration Statement.
3. Inapplicable.
4. Specimen certificate representing shares of beneficial interest for
Scudder Income Fund with $0.01 par value is incorporated by
reference to Post-Effective Amendment No. 50 to the Registration
Statement ("Post-Effective Amendment No. 50").
Part C - Page 2
<PAGE>
5. (a) Investment Management Agreement between the Registrant, on behalf of
Scudder Income Fund, and Scudder, Stevens & Clark, Inc. ("Scudder")
dated November 14, 1990 is incorporated by reference to
Post-Effective Amendment No. 52.
(b) Investment Management Agreement between the Registrant, on behalf of
Scudder Balanced Fund, and Scudder dated December 28, 1992 is
incorporated by reference to Post-Effective Amendment No. 54.
(c) Investment Management Agreement between the Registrant, on behalf of
Scudder High Yield Bond Fund, and Scudder dated June 28, 1996 is
incorporated by reference to Post-Effective Amendment No. 63.
6. (a) Underwriting Agreement between the Registrant and Scudder Fund
Distributors, Inc., dated September 10, 1985 is incorporated by
reference to Post-Effective Amendment No. 47 to the Registration
Statement.
(b) Underwriting Agreement between the Registrant and Scudder Investor
Services, Inc., dated October 13, 1992 is incorporated by reference
to Post-Effective Amendment No. 54.
7. Inapplicable.
8. (a)(1) Custodian Contract and fee schedule between the Registrant and State
Street Bank and Trust Company ("State Street") dated December 31,
1984 is incorporated by reference to Post-Effective Amendment No. 48
to the Registration Statement.
(a)(2) Fee schedule for Exhibit 8(a)(1) is incorporated by reference to
Post-Effective Amendment No. 50.
(a)(3) Amendment to Custodian Contract between the Registrant and State
Street dated April 1, 1985 is incorporated by reference to
Post-Effective Amendment No. 50.
(a)(4) Amendment to Custodian Contract between the Registrant and State
Street dated March 10, 1987 is incorporated by reference to
Post-Effective Amendment No. 50.
(a)(5) Amendment to Custodian Contract between the Registrant and State
Street dated March 10, 1987 is incorporated by reference to
Post-Effective Amendment No. 50.
(a)(6) Amendment to Custodian Contract between the Registrant and State
Street dated August 11, 1987 is incorporated by reference to
Post-Effective Amendment No. 50.
(a)(7) Amendment to Custodian Contract between the Registrant and State
Street dated August 9, 1988 is incorporated by reference to
Post-Effective Amendment No. 50.
Part C - Page 3
<PAGE>
(a)(8) Fee schedule for Exhibit 8(a)(1) is incorporated by reference to
Post-Effective Amendment No. 60.
(a)(9) Amendment to Custodian Contract between the Registrant and State
Street dated April 9, 1996 is incorporated by reference to
Post-Effective Amendment No. 63.
(a)(10) Fee schedule for Exhibit 8(a)(9) is incorporated by reference to
Post-Effective Amendment No. 63.
(b)(1) Subcustodian Agreement with fee schedule between State Street and
The Bank of New York, London office, dated December 31, 1978 is
incorporated by reference to Post-Effective Amendment No. 36 to
the Registration Statement.
9. (a)(1) Transfer Agency and Service Agreement with fee schedule between the
Registrant and Scudder Service Corporation dated October 2, 1989 is
incorporated by reference to Post-Effective Amendment No. 51 to the
Registration Statement ("Post-Effective Amendment No. 51").
(a)(2) Revised Fee Schedule dated October 1, 1995 for Exhibit 9(a)(1) is
incorporated by reference to Post-Effective Amendment No. 61.
(b)(1) COMPASS Service Agreement with fee schedule with Scudder Trust
Company dated January 1, 1990 is incorporated by reference to
Post-Effective Amendment No. 51.
(b)(2) COMPASS Service Agreement between Scudder Trust Company and the
Registrant dated October 1, 1995 is incorporated by reference to
Post-Effective Amendment No. 61.
(c)(1) Service Agreement between Copeland Associates, Inc. and Scudder
Service Corporation (on behalf of Scudder Balance Fund) dated June
8, 1995 is incorporated by reference to Post-Effective Amendment No.
62, Exhibit 9(f).
(d) Shareholder Services Agreement between the Registrant and Charles
Schwab & Co., Inc. dated June 1, 1990 is incorporated by reference
to Post-Effective Amendment No. 52.
(e)(1) Fund Accounting Services Agreement between the Registrant, on behalf
of Scudder Balanced Fund, and Scudder Fund Accounting
Corporation dated January 18, 1995 is incorporated by reference to
Post-Effective Amendment No. 60.
(e)(2) Fund Accounting Services Agreement between the Registrant, on behalf
of Scudder Income Fund, and Scudder Fund Accounting
Corporation dated January 12, 1995 is incorporated by reference to
Post-Effective Amendment No. 60.
(e)(3) Fund Accounting Services Agreement between the Registrant, on behalf
of Scudder High Yield Bond Fund, and Scudder Fund Accounting
Corporation dated June 28, 1996 is incorporated by reference to
Post-Effective Amendment No. 63.
Part C - Page 4
<PAGE>
(f) Service Agreement between Copeland Associates, Inc. and Scudder
Service Corporation (on behalf of Scudder Balanced Fund) dated June
8, 1995 is incorporated by reference to Post-Effective Amendment No.
62.
10. Inapplicable.
11. Consents of Independent Accountants is incorporated by reference to
Post-Effective Amendment No. 63.
12. Inapplicable.
13. Inapplicable.
14. (a) Scudder Flexi-Plan for Corporations and Self-Employed Individuals is
incorporated by reference to Scudder Equity Trust Post-Effective
Amendment No. 12 to its Registration Statement on Form N-1A [File
Nos. 2-78724 and 811-1444] filed on December 2, 1988 ("Equity Trust
Post-Effective Amendment No. 12").
(b) Scudder Individual Retirement Plan is incorporated by reference to
Equity Trust Post-Effective Amendment No. 12.
(c) SEP-IRA is incorporated by reference to Equity Trust Post-Effective
Amendment No. 12.
(d) Scudder Funds 403(b) Plan is incorporated by reference to Equity
Trust Post-Effective Amendment No. 12.
(e) Scudder Cash or Deferred Profit Sharing Plan under Section 401(k) is
incorporated by reference to Equity Trust Post-Effective Amendment
No. 12.
15. Inapplicable.
16. Schedule of Computation of Performance Information is incorporated
by reference to Post-Effective Amendment No. 50 to the Registration
Statement.
17. Inapplicable.
18. Inapplicable.
Power of Attorney for Daniel Pierce, Henry P. Becton, Jr., Dudley H. Ladd, David S. Lee, George M. Lovejoy, Jr. and
Wesley W. Marple, Jr. is incorporated by reference to the Signature Page of Post-Effective Amendment No. 52.
Power of Attorney for Jean C. Tempel is incorporated by reference to the Signature Page of Post-Effective Amendment
No. 60.
</TABLE>
Item 25. Persons Controlled by or under Common Control with Registrant.
- -------- --------------------------------------------------------------
None
Part C - Page 5
<PAGE>
<TABLE>
<CAPTION>
Item 26. Number of Holders of Securities (as of October 24, 1996).
- -------- ---------------------------------------------------------
<S> <C>
(1) (2)
Title of Class Number of Record Shareholders
Shares of beneficial interest ($0.01 par value):
Scudder Income Fund 25,349
Scudder Balanced Fund 7,744
Scudder High Yield Bond Fund 1,971
</TABLE>
Item 27. Indemnification.
- -------- ----------------
A policy of insurance covering Scudder, Stevens & Clark, Inc.,
its affiliates including Scudder Investor Services, Inc., and
all of the registered investment companies advised by Scudder,
Stevens & Clark, Inc. insures the Registrant's Trustees 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 IV Sections 4.1 - 4.3 of Registrant's Declaration of
Trust provide as follows:
Section 4.1. No Personal Liability of Shareholders, Trustees,
etc. No Shareholder shall be subject to any personal liability
whatsoever to any Person in connection with Trust Property or
the acts, obligations or affairs of the Trust. No Trustee,
officer, employee or agent of the Trust shall be subject to
any personal liability whatsoever to any Person, other than to
the Trust or its Shareholders, in connection with Trust
Property or the affairs of the Trust, save only that arising
from bad faith, willful misfeasance, gross negligence or
reckless disregard of his duties with respect to such Person;
and all such Persons shall look solely to the Trust Property
for satisfaction of claims of any nature arising in connection
with the affairs of the Trust. If any Shareholder, Trustee,
officer, employee, or agent, as such, of the Trust, is made a
party to any suit or proceeding to enforce any such liability
of the Trust, he shall not, on account thereof, be held to any
personal liability. The Trust shall indemnify and hold each
Shareholder harmless from and against all claims and
liabilities, to which such Shareholder may become subject by
reason of his being or having been a Shareholder, and shall
reimburse such Shareholder for all legal and other expenses
reasonably incurred by him in connection with any such claim
or liability. The indemnification and reimbursement by the
preceding sentence shall be made only out of the assets of the
one or more series of which the Shareholder who is entitled to
indemnification or reimbursement was a Shareholder at the time
the act or event occurred which gave rise to the claim against
or liability of said Shareholders. The rights accruing to a
Shareholder under this Section 4.1 shall not impair any other
right to which such Shareholder may be lawfully entitled, nor
shall anything herein contained restrict the right of the
Trust to indemnify or reimburse a Shareholder in any
appropriate situation even though not specifically provided
herein.
Section 4.2. Non-Liability of Trustees, etc. No Trustee,
officer, employee or agent of the Trust shall be liable to the
Trust, its Shareholders, or to any Shareholder, Trustee,
officer, employee, or agent thereof for any action or failure
to act (including without limitation the failure to compel in
any way any former or acting Trustee to redress any breach of
trust) except for his own bad faith, willful misfeasance,
gross negligence or reckless disregard of the duties involved
in the conduct of his office.
Section 4.3 Mandatory Indemnification. (a) Subject to the
exceptions and limitations contained in paragraph (b) below:
(i) every person who is, or has been, a Trustee or
officer of the Trust shall be indemnified by the Trust to the
fullest extent permitted by law against all liability and
against all expenses reasonably incurred or paid by him in
Part C - Page 6
<PAGE>
connection with any claim, action, suit or proceeding in which
he becomes involved as a party or otherwise by virtue of his
being or having been a Trustee or officer and against amounts
paid or incurred by him in the settlement thereof;
(ii) the words "claim," "action," "suit," or
"proceeding" shall apply to all claims, actions, suits or
proceedings (civil, criminal, or other, including appeals),
actual or threatened; and the words "liability" and "expenses"
shall include, without limitation, attorneys' fees, costs,
judgments, amounts paid in settlement, fines, penalties and
other liabilities.
(b) No indemnification shall be provided hereunder to a
Trustee or officer:
(i) against any liability to the Trust or the
Shareholders by reason of a final adjudication by the court or
other body before which the proceeding was brought that he
engaged in willful misfeasance, bad faith, gross negligence or
reckless disregard of the duties involved in the conduct of
his office;
(ii) with respect to any matter as to which he shall
have been finally adjudicated not to have acted in good faith
in the reasonable belief that his action was in the best
interest of the Trust;
(iii) in the event of a settlement or other
disposition not involving a final adjudication as provided in
paragraph (b)(i) resulting in a payment by a Trustee or
officer, unless there has been a determination that such
Trustee or officer did not engage in willful misfeasance, bad
faith, gross negligence or reckless disregard of the duties
involved in the conduct of his office;
(A) by the court or other body approving the
settlement or other disposition; or
(B) based upon a review of readily available facts
(as opposed to a full trial-type inquiry) by (x) vote
of a majority of the Disinterested Trustees acting on
the matter (provided that a majority of the
Disinterested Trustees then in office act on the
matter) or (y) written opinion of independent legal
counsel.
(c) The rights of indemnification herein provided may be
insured against by policies maintained by the Trust, shall be
severable, shall not affect any other rights to which any
Trustee or officer may now or hereafter be entitled, shall
continue as to a person who has ceased to be such Trustee or
officer and shall inure to the benefit of the heirs,
executors, administrators and assigns of such a person.
Nothing contained herein shall affect any rights to
indemnification to which personnel of the Trust other than
Trustees and officers may be entitled by contract or otherwise
under law.
(d) Expenses of preparation and presentation of a defense to
any claim, action, suit, or proceeding of the character
described in paragraph (a) of this Section 4.3 shall be
advanced by the Trust prior to final disposition thereof upon
receipt of an undertaking by or on behalf of the recipient, to
repay such amount if it is ultimately determined that he is
not entitled to indemnification under this Section 4.3,
provided that either:
(i) such undertaking is secured by a surety bond or
some other appropriate security provided by the recipient, or
the Trust shall be insured against losses arising out of any
such advances; or
(ii) a majority of the Disinterested Trustees acting
on the matter (provided that a majority of the Disinterested
Trustees act on the matter) or an independent legal counsel in
a written opinion shall determine, based upon a review of
readily available facts (as opposed to a full trial-type
inquiry), that there is reason to believe that the recipient
ultimately will be found entitled to indemnification.
As used in this Section 4.3, a "Disinterested Trustee" is one who is not
(i) an "Interested Person" of the Trust (including anyone who has been exempted
from being an "Interested Person" by any rule, regulation or order of the
Commission), or (ii) involved in the claim, action, suit or proceeding.
Part C - Page 7
<PAGE>
Item 28. Business or Other Connections of Investment Adviser
- -------- ---------------------------------------------------
The Adviser 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 28.
<TABLE>
<CAPTION>
Business and Other Connections of Board
Name of Directors of Registrant's Adviser
---- ------------------------------------
<S> <C>
Stephen R. Beckwith Director, Vice President, Assistant Treasurer, Chief Operating Officer & Chief
Financial Officer, Scudder, Stevens & Clark, Inc. (investment adviser)**
Lynn S. Birdsong Director, Scudder, Stevens & Clark, Inc. (investment adviser)**
Supervisory Director, The Latin America Income and Appreciation Fund N.V. (investment
company) +
Supervisory Director, The Venezuela High Income Fund N.V. (investment company) xx
Supervisory Director, Scudder Mortgage Fund (investment company)+
Supervisory Director, Scudder Floating Rate Funds for Fannie Mae Mortgage Securities I
& II (investment company) +
Director, Scudder, Stevens & Clark (Luxembourg) S.A. (investment manager) #
Trustee, Scudder Funds Trust (investment company)*
President & Director, The Latin America Dollar Income Fund, Inc. (investment company)**
President & Director, Scudder World Income Opportunities Fund, Inc. (investment
company)**
Director, Canadian High Income Fund (investment company)#
Director, Hot Growth Companies Fund (investment company)#
President, The Japan Fund, Inc. (investment company)**
Director, Sovereign High Yield Investment Company (investment company)+
Nicholas Bratt Director, Scudder, Stevens & Clark, Inc. (investment adviser)**
President & Director, Scudder New Europe Fund, Inc. (investment company)**
President & Director, The Brazil Fund, Inc. (investment company)**
President & Director, The First Iberian Fund, Inc. (investment company)**
President & Director, Scudder International Fund, Inc. (investment company)**
President & Director, Scudder Global Fund, Inc. (President on all series except Scudder
Global Fund) (investment company)**
President & Director, The Korea Fund, Inc. (investment company)**
President & Director, Scudder New Asia Fund, Inc. (investment company)**
President, The Argentina Fund, Inc. (investment company)**
Vice President, Scudder, Stevens & Clark Corporation (Delaware) (investment adviser)**
Vice President, Scudder, Stevens & Clark Japan, Inc. (investment adviser)###
Vice President, Scudder, Stevens & Clark of Canada Ltd. (Canadian investment adviser)
Toronto, Ontario, Canada
Vice President, Scudder, Stevens & Clark Overseas Corporationoo
E. Michael Brown Director, Scudder, Stevens & Clark, Inc. (investment adviser)**
Trustee, Scudder GNMA Fund (investment company)*
Trustee, Scudder U.S. Treasury Fund (investment company)*
Trustee, Scudder Tax Free Money Fund (investment company)*
Assistant Treasurer, Scudder Investor Services, Inc. (broker/dealer)*
Director & President, Scudder Realty Holding Corporation (a real estate holding
company)*
Director & President, Scudder Trust Company (a trust company)+++
Director, Scudder Trust (Cayman) Ltd.
Part C - Page 8
<PAGE>
Mark S. Casady Director, Scudder, Stevens & Clark, Inc. (investment adviser)**
Director & Vice President, Scudder Investor Services, Inc. (broker/dealer)*
Vice President, Scudder Service Corporation (in-house transfer agent)*
Director, SFA, Inc. (advertising agency)*
Linda C. Coughlin Director, Scudder, Stevens & Clark, Inc. (investment adviser)**
Director & Senior Vice President, Scudder Investor Services, Inc. (broker/dealer)*
President & Trustee, AARP Cash Investment Funds (investment company)**
President & Trustee, AARP Growth Trust (investment company)**
President & Trustee, AARP Income Trust (investment company)**
President & Trustee, AARP Tax Free Income Trust (investment company)**
Director, SFA, Inc. (advertising agency)*
Margaret D. Hadzima Director, Scudder, Stevens & Clark, Inc. (investment adviser)**
Assistant Treasurer, Scudder Investor Services, Inc. (broker/dealer)*
Jerard K. Hartman Director, Scudder, Stevens & Clark, Inc. (investment adviser)**
Vice President, Scudder California Tax Free Trust (investment company)*
Vice President, Scudder Equity Trust (investment company)**
Vice President, Scudder Cash Investment Trust (investment company)*
Vice President, Scudder Fund, Inc. (investment company)**
Vice President, Scudder Global Fund, Inc. (investment company)**
Vice President, Scudder GNMA Fund (investment company)*
Vice President, Scudder Portfolio Trust (investment company)*
Vice President, Scudder Institutional Fund, Inc. (investment company)**
Vice President, Scudder International Fund, Inc. (investment company)**
Vice President, Scudder Investment Trust (investment company)*
Vice President, Scudder Municipal Trust (investment company)*
Vice President, Scudder Mutual Funds, Inc. (investment company)**
Vice President, Scudder New Asia Fund, Inc. (investment company)**
Vice President, Scudder New Europe Fund, Inc. (investment company)**
Vice President, Scudder Securities Trust (investment company)*
Vice President, Scudder State Tax Free Trust (investment company)*
Vice President, Scudder Funds Trust (investment company)**
Vice President, Scudder Tax Free Money Fund (investment company)*
Vice President, Scudder Tax Free Trust (investment company)*
Vice President, Scudder U.S. Treasury Money Fund (investment company)*
Vice President, Scudder Variable Life Investment Fund (investment company)*
Vice President, The Brazil Fund, Inc. (investment company)**
Vice President, The Korea Fund, Inc. (investment company)**
Vice President, The Argentina Fund, Inc. (investment company)**
Vice President & Director, Scudder, Stevens & Clark of Canada, Ltd. (Canadian
investment adviser) Toronto, Ontario, Canada
Vice President, The First Iberian Fund, Inc. (investment company)**
Vice President, The Latin America Dollar Income Fund, Inc. (investment company)**
Vice President, Scudder World Income Opportunities Fund, Inc. (investment company)**
Richard A. Holt Director, Scudder, Stevens & Clark, Inc. (investment adviser)**
Vice President, Scudder Variable Life Investment Fund (investment company)*
Dudley H. Ladd Director, Scudder, Stevens & Clark, Inc. (investment adviser)**
Director, Scudder Global Fund, Inc. (investment company)**
Director, Scudder International Fund, Inc. (investment company)**
Part C - Page 9
<PAGE>
Senior Vice President & Director, Scudder Investor Services, Inc. (broker/dealer)*
President & Director, SFA, Inc. (advertising agency)*
Vice President & Trustee, Scudder Cash Investment Trust (investment company)*
Trustee, Scudder Investment Trust (investment company)*
Trustee, Scudder Portfolio Trust (investment company)*
Trustee, Scudder Municipal Trust (investment company)*
Trustee, Scudder Securities Trust (investment company)*
Trustee, Scudder State Tax Free Trust (investment company)*
Trustee, Scudder Equity Trust (investment company)**
Vice President, Scudder U.S. Treasury Money Fund (investment company)*
John T. Packard Director, Scudder, Stevens & Clark, Inc. (investment adviser)**
President, Montgomery Street Income Securities, Inc. (investment company) o
Director, Scudder Realty Advisors, Inc. (realty investment adviser) x
Daniel Pierce Chairman & Director, Scudder, Stevens & Clark, Inc. (investment adviser)**
Chairman & Director, Scudder New Europe Fund, Inc. (investment company)**
Trustee, Scudder California Tax Free Trust (investment company)*
President & Trustee, Scudder Equity Trust (investment company)**
Director, The First Iberian Fund, Inc. (investment company)**
President & Trustee, Scudder GNMA Fund (investment company)*
President & Trustee, Scudder Portfolio Trust (investment company)*
President & Trustee, Scudder Funds Trust (investment company)**
President & Director, Scudder Institutional Fund, Inc. (investment company)**
President & Director, Scudder Fund, Inc. (investment company)**
Chairman & Director, Scudder International Fund, Inc. (investment company)**
President & Trustee, Scudder Investment Trust (investment company)*
Vice President & Trustee, Scudder Municipal Trust (investment company)*
President & Director, Scudder Mutual Funds, Inc. (investment company)**
Director, Scudder New Asia Fund, Inc. (investment company)**
President & Trustee, Scudder Securities Trust (investment company)*
Trustee, Scudder State Tax Free Trust (investment company)*
Vice President & Trustee, Scudder Variable Life Investment Fund (investment company)*
Director, The Brazil Fund, Inc. (until 7/94) (investment company)**
Vice President & Assistant Treasurer, Montgomery Street Income Securities, Inc.
(investment company)o
Chairman, Vice President & Director, Scudder Global Fund, Inc. (investment company)**
Vice President, Director & Assistant Treasurer, Scudder Investor Services, Inc.
(broker/dealer)*
President & Director, Scudder Service Corporation (in-house transfer agent)*
Chairman & President, Scudder, Stevens & Clark of Canada, Ltd. (Canadian investment
adviser), Toronto, Ontario, Canada
President & Director, Scudder Precious Metals, Inc. xxx
Chairman & Director, Scudder Global Opportunities Funds (investment company) Luxembourg
Chairman, Scudder, Stevens & Clark, Ltd. (investment adviser) London, England
Director, Scudder Fund Accounting Corporation (in-house fund accounting agent)*
Director, Vice President & Assistant Secretary, Scudder Realty Holdings Corporation (a
real estate holding company)*
Director, Scudder Latin America Investment Trust PLC (investment company)@
Incorporator, Scudder Trust Company (a trust company)+++
Director, Fiduciary Trust Company (banking & trust company) Boston, MA
Director, Fiduciary Company Incorporated (banking & trust company) Boston, MA
Trustee, New England Aquarium, Boston, MA
Part C - Page 10
<PAGE>
Kathryn L. Quirk Director & Secretary, Scudder, Stevens & Clark, Inc. (investment adviser)**
Vice President, Scudder Fund, Inc. (investment company)**
Vice President, Scudder Institutional Fund, Inc. (investment company)**
Vice President & Assistant Secretary, Scudder World Income Opportunities Fund, Inc.
(investment company)**
Vice President & Assistant Secretary, The Korea Fund, Inc. (investment company)**
Vice President & Assistant Secretary, The Argentina Fund, Inc. (investment company)**
Vice President & Assistant Secretary, The Brazil Fund, Inc. (investment company)**
Vice President & Assistant Secretary, Scudder International Fund, Inc. (investment
company)**
Vice President & Assistant Secretary, Scudder Equity
Trust (investment company)** Vice President &
Assistant Secretary, Scudder Securities Trust
(investment company)* Vice President & Assistant
Secretary, Scudder Funds Trust (investment company)**
Vice President & Assistant Secretary, Scudder Global
Fund, Inc. (investment company)** Vice President &
Assistant Secretary, Montgomery Street Income
Securities, Inc.
(investment company)o
Vice President & Assistant Secretary, Scudder Mutual Funds, Inc. (investment company)**
Vice President & Assistant Secretary, Scudder New Europe Fund, Inc. (investment
company)**
Vice President & Assistant Secretary, Scudder Variable Life Investment Fund (investment
company)*
Vice President & Assistant Secretary, The First Iberian Fund, Inc. (investment
company)**
Vice President & Assistant Secretary, The Latin America Dollar Income Fund, Inc.
(investment company)**
Vice President & Secretary, AARP Growth Trust
(investment company)** Vice President & Secretary,
AARP Income Trust (investment company)** Vice
President & Secretary, AARP Tax Free Income Trust
(investment company)** Vice President & Secretary,
AARP Cash Investment Funds (investment company)**
Vice President, Scudder GNMA Fund (investment
company)* Vice President & Secretary, The Japan Fund,
Inc. (investment company)** Director, Vice President
& Secretary, Scudder Fund Accounting Corporation
(in-house
fund accounting agent)*
Senior Vice President, Scudder Investor Services, Inc. (broker/dealer)*
Director, Vice President & Secretary, Scudder Realty Holdings Corporation (a real
estate holding company)*
Vice President & Assistant Secretary, Scudder Precious Metals, Inc. xxx
Cornelia M. Small Director, Scudder, Stevens & Clark, Inc. (investment adviser)**
Vice President, Scudder Global Fund, Inc. (investment company)**
Vice President, AARP Cash Investment Funds (investment company)**
Vice President, AARP Growth Trust (investment company)**
Vice President, AARP Income Trust (investment company)**
Vice President, AARP Tax Free Income Trust (investment company)**
Edmond D. Villani Director, President & Chief Executive Officer, Scudder, Stevens & Clark, Inc.
(investment adviser)**
Chairman & Director, Scudder New Asia Fund, Inc. (investment company)**
Chairman & Director, The Argentina Fund, Inc. (investment company)**
Director, Scudder Realty Advisors, Inc. (realty investment adviser) x
Supervisory Director, Scudder Mortgage Fund (investment company) +
Part C - Page 11
<PAGE>
Chairman & Director, The Latin America Dollar Income Fund, Inc. (investment company)**
Director, Scudder, Stevens & Clark Japan, Inc. (investment adviser)###
Chairman & Director, Scudder World Income Opportunities Fund, Inc. (investment
company)**
Supervisory Director, Scudder Floating Rate Funds for Fannie Mae Mortgage Securities I
& II (investment company)+
Director, The Brazil Fund, Inc. (investment company)**
Director, Indosuez High Yield Bond Fund (investment company) Luxembourg
President & Director, Scudder, Stevens & Clark Overseas Corporationoo
President & Director, Scudder, Stevens & Clark Corporation (Delaware) (investment
adviser)**
Director, IBJ Global Investment Management S.A., (Luxembourg investment management
company) Luxembourg, Grand-Duchy of Luxembourg
Stephen A. Wohler Director, Scudder, Stevens & Clark, Inc. (investment adviser)**
Vice President, Montgomery Street Income Securities, Inc. (investment company)o
<FN>
* Two International Place, Boston, MA
x 333 South Hope Street, Los Angeles, CA
** 345 Park Avenue, New York, NY
++ Two Prudential Plaza, 180 N. Stetson Avenue, Chicago, IL
+++ 5 Industrial Way, Salem, NH
o 101 California Street, San Francisco, CA
# Societe Anonyme, 47, Boulevard Royal, L-2449 Luxembourg, R.C. Luxembourg B 34.564
+ John B. Gorsiraweg 6, Willemstad Curacao, Netherlands Antilles
xx De Ruyterkade 62, P.O. Box 812, Willemstad Curacao, Netherlands Antilles
## 2 Boulevard Royal, Luxembourg
*** B1 2F3F 248 Section 3, Nan King East Road, Taipei, Taiwan
xxx Grand Cayman, Cayman Islands, British West Indies
oo 20-5, Ichibancho, Chiyoda-ku, Tokyo, Japan
### 1-7, Kojimachi, Chiyoda-ku, Tokyo, Japan
@ c/o Sinclair Hendersen Limited, 23 Cathedral Yard, Exeter, Devon
</FN>
</TABLE>
Item 29. Principal Underwriters.
(a) Scudder California Tax Free Trust
Scudder Cash Investment Trust
Scudder Equity Trust
Scudder Fund, Inc.
Scudder Funds Trust
Scudder Global Fund, Inc.
Scudder GNMA Fund
Scudder Institutional Fund, Inc.
Scudder International Fund, Inc.
Scudder Investment Trust
Scudder Municipal Trust
Scudder Mutual Funds, Inc.
Scudder Portfolio Trust
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
AARP Cash Investment Funds
Part C - Page 12
<PAGE>
AARP Growth Trust
AARP Income Trust
AARP Tax Free Income Trust
The Japan Fund, Inc.
<TABLE>
<CAPTION>
(b)
(1) (2) (3)
<S> <C> <C>
Name and Principal Position and Offices with Positions and
Business Address Scudder Investor Services, Inc. Offices with Registrant
---------------- ------------------------------- -----------------------
E. Michael Brown Assistant Treasurer None
Two International Place
Boston, MA 02110
Mark S. Casady Director and Vice President None
Two International Place
Boston, MA 02110
Linda Coughlin Director and Senior Vice President None
Two International Place
Boston, MA 02110
Richard W. Desmond Vice President None
345 Park Avenue
New York, NY 10154
Coleen Downs Dinneen Assistant Clerk Assistant Secretary
Two International Place
Boston, MA 02110
Paul J. Elmlinger Senior Vice President None
345 Park Avenue
New York, NY 10154
Margaret D. Hadzima Assistant Treasurer None
Two International Place
Boston, MA 02110
Thomas W. Joseph Director, Vice President, Vice President
Two International Place Treasurer and Assistant Clerk
Boston, MA 02110
Dudley H. Ladd Director and Senior Vice President Trustee
Two International Place
Boston, MA 02110
David S. Lee Director, President and Assistant Vice President and Trustee
Two International Place Treasurer
Boston, MA 02110
Thomas F. McDonough Clerk Vice President, Secretary
Two International Place and Assistant Treasurer
Boston, MA 02110
Part C - Page 13
<PAGE>
Name and Principal Position and Offices with Positions and
Business Address Scudder Investor Services, Inc. Offices with Registrant
---------------- ------------------------------- -----------------------
Thomas H. O'Brien Assistant Treasurer None
345 Park Avenue
New York, NY 10154
Edward J. O'Connell Assistant Treasurer Vice President and
345 Park Avenue Assistant Treasurer
New York, NY 10154
Daniel Pierce Director, Vice President President and Trustee
Two International Place and Assistant Treasurer
Boston, MA 02110
Kathryn L. Quirk Senior Vice President None
345 Park Avenue
New York, NY 10154
Edmund J. Thimme Director and Vice President None
345 Park Avenue
New York, NY 10154
David B. Watts Assistant Treasurer None
Two International Place
Boston, MA 02110
Linda J. Wondrack Vice President None
Two International Place
Boston, MA 02110
</TABLE>
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 29.
<TABLE>
<CAPTION>
(c)
(1) (2) (3) (4) (5)
Net Underwriting Compensation on
Name of Principal Discounts and Redemptions Brokerage Other
Underwriter Commissions and Repurchases Commissions Compensation
----------- ----------- --------------- ----------- ------------
<S> <C> <C> <C> <C>
Scudder Investor None None None None
Services, Inc.
</TABLE>
Item 30. 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, Stevens &
Clark, Two International Place, Boston, MA 02110. Records
relating to the duties of the Registrant's custodian are
maintained by State Street Bank and Trust Company, Heritage
Drive, North Quincy, Massachusetts. Records relating to the
duties of the Registrant's transfer agent are maintained by
Scudder Service Corporation, Two International Place, Boston,
Massachusetts.
Item 31. Management Services.
- -------- --------------------
Inapplicable.
Part C - Page 14
<PAGE>
Item 32. Undertakings.
- -------- -------------
Inapplicable.
Part C - Page 15
<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(b) 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 29th day of October, 1996.
SCUDDER PORTFOLIO TRUST
By /s/Thomas F. McDonough
----------------------
Thomas F. McDonough, Vice President,
Secretary and Assistant Treasurer
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/Daniel Pierce
- --------------------------------------
Daniel Pierce* President (Principal Executive October 29, 1996
Officer) and Trustee
/s/Henry P. Becton, Jr.
- --------------------------------------
Henry P. Becton, Jr.* Trustee October 29, 1996
/s/Dudley H. Ladd
- --------------------------------------
Dudley H. Ladd* Trustee October 29, 1996
/s/David S. Lee
- --------------------------------------
David S. Lee* Vice President and Trustee October 29, 1996
/s/George M. Lovejoy, Jr.
- --------------------------------------
George M. Lovejoy, Jr.* Trustee October 29, 1996
/s/Wesley W. Marple, Jr.
- --------------------------------------
Wesley W. Marple, Jr.* Trustee October 29, 1996
/s/Jean C. Tempel
- --------------------------------------
Jean C. Tempel* Trustee October 29, 1996
<PAGE>
SIGNATURE TITLE DATE
- --------- ----- ----
/s/Pamela A. McGrath
- --------------------------------------
Pamela A. McGrath Treasurer (Principal Financial and October 29, 1996
Accounting Officer) and Vice President
</TABLE>
*By: /s/Thomas F. McDonough
---------------------------
Thomas F. McDonough**
** Attorney-in-fact pursuant to a power of
attorney contained in the signature page of the
Post-Effective Amendment No. 52 to the
Registration Statement filed February 22, 1991
and pursuant to a power of attorney contained
in the signature page of Post-Effective
Amendment No. 60 to the Registration Statement
filed April 17, 1995.
2
