<PAGE> PAGE 1
000 B000000 10/31/98
000 C000000 088047
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 SCUDDER GLOBAL HIGH INCOME FUND, INC.
001 B000000 811-2613
001 C000000 6172952567
002 A000000 TWO INTERNATIONAL PLACE
002 B000000 BOSTON
002 C000000 MA
002 D010000 02110
002 D020000 4103
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 SCUDDER KEMPER INVESTMENTS, INC.
008 B000001 A
008 C000001 801-252
008 D010001 BOSTON
008 D020001 MA
008 D030001 02110
010 A000001 SCUDDER FUND ACCOUNTING CORPORATION
010 C010001 BOSTON
010 C020001 MA
010 C030001 02110
011 A000001 SCUDDER INVESTOR SERVICES, INC.
011 B000001 8-298
011 C010001 BOSTON
011 C020001 MA
011 C030001 02110
012 A000001 SCUDDER SERVICE CORPORATION
012 B000001 84-1489
012 C010001 BOSTON
<PAGE> PAGE 2
012 C020001 MA
012 C030001 02110
013 A000001 PRICEWATERHOUSECOOPERS LLP
013 B010001 BOSTON
013 B020001 MA
013 B030001 02109
014 A000001 SCUDDER INVESTOR SERVICES, INC.
014 B000001 8-298
015 A000001 STATE STREET BANK AND TRUST COMPANY
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02110
015 E010001 X
015 A000002 BANKBOSTON, N.A.
015 B000002 S
015 C010002 BUENOS AIRES
015 D010002 ARGENTINA
015 E040002 X
015 A000003 NATIONAL AUSTRALIA BANK LTD
015 B000003 S
015 C010003 MELBOURNE
015 D010003 AUSTRALIA
015 E040003 X
015 A000004 CREDITANSTALT BANKVEREIN
015 B000004 S
015 C010004 XXXX
015 D010004 AUSTRIA
015 E040004 X
015 A000005 STANDARD CHARTERED BANK
015 B000005 S
015 C010005 DHAKA
015 D010005 BANGLADESH
015 E040005 X
015 A000006 BANQUE BRUXELLES LAMBERT
015 B000006 S
015 C010006 LAMBERT
015 D010006 BELGIUM
015 E040006 X
015 A000007 BARCLAYS BANK OF BOTSWANA
015 B000007 S
015 C010007 XXXX
015 D010007 BOTSWANA
015 E040007 X
015 A000008 STANBIC BANK BOTSWANA LIMITED
015 B000008 S
015 C010008 XXXX
015 D010008 BOTSWANA
015 E040008 X
015 A000009 BANKBOSTON, N.A.
015 B000009 S
<PAGE> PAGE 3
015 C010009 SAO PAULO
015 D010009 BRAZIL
015 E040009 X
015 A000010 CANADIAN IMPERIAL BANK OF COMMERCE
015 B000010 S
015 C010010 XXXX
015 D010010 CANADA
015 E040010 X
015 A000011 CITIBANK, N.A.
015 B000011 S
015 C010011 SANTIAGO
015 D010011 CILE
015 E040011 X
015 A000012 STANDARD CHARTERED BANK
015 B000012 S
015 C010012 SHANGHAI
015 D010012 CHINA
015 E040012 X
015 A000013 STANDARD CHARTERED BANK
015 B000013 S
015 C010013 SHENZHEN
015 D010013 CHINA
015 E040013 X
015 A000014 CITITRUST COLOMBIA
015 B000014 S
015 C010014 XXXX
015 D010014 COLOMBIA
015 E040014 X
015 A000015 CESKOSLOVENSKA OBCHODNI BANKA
015 B000015 S
015 C010015 PRAGUE
015 D010015 CZECH REPUBLIC
015 E040015 X
015 A000016 DEN DANSKE BANK
015 B000016 S
015 C010016 XXXX
015 D010016 DENMARK
015 E040016 X
015 A000017 CITIBANK, N.A.
015 B000017 S
015 C010017 QUITO
015 D010017 EQUADOR
015 E040017 X
015 A000018 CITIBANK N.A.
015 B000018 S
015 C010018 CAIRO
015 D010018 EGYPT
015 E040018 X
015 A000019 MERITA BANK
015 B000019 S
015 C010019 XXXX
<PAGE> PAGE 4
015 D010019 FINLAND
015 E040019 X
015 A000020 BANQUE PARIBAS
015 B000020 S
015 C010020 PARIS
015 D010020 FRANCE
015 E040020 X
015 A000021 DRESNER BANK
015 B000021 S
015 C010021 XXXX
015 D010021 GERMANY
015 E040021 X
015 A000022 BARCLAYS BANK OF GHANA LIMITED
015 B000022 S
015 C010022 XXXX
015 D010022 GHANA
015 E040022 X
015 A000023 MERCHANT BANK (GHANA) LIMITED
015 B000023 S
015 C010023 XXXX
015 D010023 GHANA
015 E040023 X
015 A000024 CITIBANK, N.A.
015 B000024 S
015 C010024 ATHENS
015 D010024 GREECE
015 E040024 X
015 A000025 HONG KONG & SHANGHAI BANKING CORP. LTD.
015 B000025 S
015 C010025 HONG KONG
015 D010025 HONGKONG
015 E040025 X
015 A000026 CITIBANK BUDAPEST RT
015 B000026 S
015 C010026 BUDAPEST
015 D010026 HUNGARY
015 E040026 X
015 A000027 CITIBANK, N.A.
015 B000027 S
015 C010027 MUMBAI
015 D010027 INDIA
015 E040027 X
015 A000028 CITIBANK, N.A.
015 B000028 S
015 C010028 JAKARTA
015 D010028 INDONESIA
015 E040028 X
015 A000029 ALLIED IRISH BANKS PLC
015 B000029 S
015 C010029 DUBLIN
015 D010029 IRELAND
<PAGE> PAGE 5
015 E040029 X
015 A000030 BANK HAPOALIM B.M.
015 B000030 S
015 C010030 XXXX
015 D010030 ISREAL
015 E040030 X
015 A000031 BANCA COMERCIALE ITALIANA
015 B000031 S
015 C010031 MILAN
015 D010031 ITALY
015 E040031 X
015 A000032 THE BANK OF TOKYO - MITSHUBISHI, LTD
015 B000032 S
015 C010032 TOKYO
015 D010032 JAPAN
015 E040032 X
015 A000033 ARAB BANK PLC
015 B000033 S
015 C010033 XXXX
015 D010033 JORDAN
015 E040033 X
015 A000034 BARCLAYS BANK OF KENYA LTD
015 B000034 S
015 C010034 XXXX
015 D010034 KENYA
015 E040034 X
015 A000035 CITIBANK, N.A.
015 B000035 S
015 C010035 SEOUL
015 D010035 KOREA
015 E040035 X
015 A000036 BRITISH BANK OF THE MIDDLE EAST
015 B000036 S
015 C010036 XXXX
015 D010036 LEBANON
015 E040036 X
015 A000037 HONG KONG BANK MALAYSIA BERHAD
015 B000037 S
015 C010037 XXXX
015 D010037 MALAYSIA
015 E040037 X
015 A000038 HONGKONG & SHANGHAI BANKING CORP. LTD
015 B000038 S
015 C010038 XXXX
015 D010038 MAURITUS
015 E040038 X
015 A000039 CITIBANK MEXICO
015 B000039 S
015 C010039 XXXX
015 D010039 MEXICO
015 E040039 X
<PAGE> PAGE 6
015 A000040 BANQUE MAROCAINE DU COMMERCE EXTERIEUR
015 B000040 S
015 C010040 XXXX
015 D010040 MOROCCO
015 E040040 X
015 A000041 STANDARD BANK NAMBIA
015 B000041 S
015 C010041 XXXX
015 D010041 NAMBIA
015 E040041 X
015 A000042 ABN-AMRO BANK
015 B000042 S
015 C010042 XXXX
015 D010042 NETHERLANDS
015 E040042 X
015 A000043 NATIONAL AUSTRALIA BANK LTD.
015 B000043 S
015 C010043 AUCKLAND
015 D010043 NEW ZEALAND
015 E040043 X
015 A000044 DEN NORSKE BANK
015 B000044 S
015 C010044 XXXX
015 D010044 NORWAY
015 E040044 X
015 A000045 BRITISH BANK OF THE MIDDLE EAST
015 B000045 S
015 C010045 XXXX
015 D010045 OMAN
015 E040045 X
015 A000046 STANDARD CHARTERED BANK
015 B000046 S
015 C010046 KARACHI
015 D010046 PAKISTAN
015 E040046 X
015 A000047 CITIBANK, N.A.
015 B000047 S
015 C010047 LIMA
015 D010047 PERU
015 E040047 X
015 A000048 CITIBANK, N.A.
015 B000048 S
015 C010048 MANILA
015 D010048 PHILIPPINES
015 E040048 X
015 A000049 CITIBANK (POLAND)
015 B000049 S
015 C010049 XXXX
015 D010049 POLAND
015 E040049 X
015 A000050 BANCO ESPIRITO SANTO E COMERCIAL
<PAGE> PAGE 7
015 B000050 S
015 C010050 LISBOA
015 D010050 PORTUGAL
015 E040050 X
015 A000051 BANK CREDIT SUISSE FIRST BOSTON AO
015 B000051 S
015 C010051 ZURI
015 D010051 RUSSIA
015 E040051 X
015 A000052 HONGKONG & SHANGHAI BANKING CORPORATION
015 B000052 S
015 C010052 XXXX
015 D010052 SINGAPORE
015 E040052 X
015 A000053 CESKOSLOVENSKA OBCHODNA BANKA,A.S.
015 B000053 S
015 C010053 BRATISLAVA
015 D010053 SLOVAKIA
015 E040053 X
015 A000054 FIRST NATIONAL BANK OF SOUTHERN AFRICA
015 B000054 S
015 C010054 XXXX
015 D010054 SOUTH AFRICA
015 E040054 X
015 A000055 BANCO SANTANDER
015 B000055 S
015 C010055 XXXX
015 D010055 SPAIN
015 E040055 X
015 A000056 HONGKONG & SHANGHAI BANKING CORP. LTD.
015 B000056 S
015 C010056 COLOMBO
015 D010056 SRI LANKA
015 E040056 X
015 A000057 STANBIC BANK SWAZILAND LIMITED
015 B000057 S
015 C010057 XXXX
015 D010057 SWAZILAND
015 E040057 X
015 A000058 SKANDINAVISKA ENSKILDA BANKEN
015 B000058 S
015 C010058 XXXX
015 D010058 SWEDEN
015 E040058 X
015 A000059 SWISS BANK CORPORATION
015 B000059 S
015 C010059 XXXX
015 D010059 SWITZERLAND
015 E040059 X
015 A000060 CENTRAL BANK OF CHINA
015 B000060 S
<PAGE> PAGE 8
015 C010060 XXXX
015 D010060 CHINA
015 E040060 X
015 A000061 HONGKONG & SHANGHAI BANKING CORP. LTD.
015 B000061 S
015 C010061 BANGKOK
015 D010061 THAILAND
015 E040061 X
015 A000062 CITIBANK, N.A.
015 B000062 S
015 C010062 ISTANBUL
015 D010062 TURKEY
015 E040062 X
015 A000063 LLOYDS BANK PLC
015 B000063 S
015 C010063 XXXX
015 D010063 UNITED KINGDOM
015 E040063 X
015 A000064 BANKBOSTON, N.A.
015 B000064 S
015 C010064 MONTEVIDEO
015 D010064 URUGUAY
015 E040064 X
015 A000065 CITIBANK,N.A.
015 B000065 S
015 C010065 CARACAS
015 D010065 VENEZUELA
015 E040065 X
015 A000066 STANBIC BANK ZAMBIA LTD.
015 B000066 S
015 C010066 XXXX
015 D010066 ZAMBIA
015 E040066 X
018 000000 Y
019 A000000 N
019 B000000 0
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 DONALDSON LUF & JEN FIXED INC.
022 B000001 13-2741729
022 C000001 1108956
022 D000001 526
<PAGE> PAGE 9
022 A000002 FIRST CHICAGO CORP
022 C000002 663258
022 D000002 0
022 A000003 FIRST CHICAGO CAP MKTS
022 B000003 36-3595942
022 C000003 601309
022 D000003 0
022 A000004 J.P. MORGAN SECURITIES
022 B000004 13-3224016
022 C000004 229643
022 D000004 242513
022 A000005 CHASE MANHATTAN BANK
022 B000005 13-2633612
022 C000005 106155
022 D000005 136498
022 A000006 ING
022 B000006 95-4339369
022 C000006 99009
022 D000006 73446
022 A000007 SANWA - BGK SECS
022 B000007 13-3046258
022 C000007 141464
022 D000007 0
022 A000008 MERRILL LYNCH
022 B000008 13-5674085
022 C000008 69035
022 D000008 57796
022 A000009 GOLDMAN SACHS & CO.
022 B000009 13-5108880
022 C000009 48748
022 D000009 51675
022 A000010 LEHMAN BROTHERS SECURITIES
022 B000010 13-2518466
022 C000010 45595
022 D000010 34136
023 C000000 3311860
023 D000000 711437
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 Y
<PAGE> PAGE 10
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 N
028 A010000 0
028 A020000 0
028 A030000 0
028 A040000 0
028 B010000 0
028 B020000 0
028 B030000 0
028 B040000 0
028 C010000 0
028 C020000 0
028 C030000 0
028 C040000 0
028 D010000 0
028 D020000 0
028 D030000 0
028 D040000 0
028 E010000 0
028 E020000 0
028 E030000 0
028 E040000 0
028 F010000 0
028 F020000 0
028 F030000 0
028 F040000 0
028 G010000 0
028 G020000 0
028 G030000 0
028 G040000 0
028 H000000 0
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
035 000000 0
036 B000000 0
038 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 1.200
048 A010000 0
048 A020000 0.000
048 B010000 0
<PAGE> PAGE 11
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
054 A000000 Y
054 B000000 Y
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 Y
055 A000000 N
055 B000000 Y
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 N
060 B000000 N
061 000000 2500
062 A000000 Y
062 B000000 0.0
062 C000000 9.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
<PAGE> PAGE 12
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 3.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 88.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 Y
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 Y
070 E020000 Y
070 F010000 Y
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 Y
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 Y
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
<PAGE> PAGE 13
070 R010000 Y
070 R020000 N
071 A000000 411980
071 B000000 382814
071 C000000 118267
071 D000000 324
072 A000000 12
072 B000000 15624
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 1332
072 G000000 0
072 H000000 0
072 I000000 44
072 J000000 194
072 K000000 0
072 L000000 48
072 M000000 60
072 N000000 0
072 O000000 0
072 P000000 1205
072 Q000000 0
072 R000000 98
072 S000000 14
072 T000000 0
072 U000000 0
072 V000000 0
072 W000000 0
072 X000000 2995
072 Y000000 0
072 Z000000 12629
072AA000000 0
072BB000000 68734
072CC010000 0
072CC020000 4024
072DD010000 14629
072DD020000 0
072EE000000 0
073 A010000 1.2400
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.2600
074 A000000 0
074 B000000 0
074 C000000 8139
074 D000000 59624
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
<PAGE> PAGE 14
074 I000000 0
074 J000000 9333
074 K000000 0
074 L000000 1940
074 M000000 1
074 N000000 79037
074 O000000 1062
074 P000000 52
074 Q000000 0
074 R010000 24183
074 R020000 0
074 R030000 0
074 R040000 286
074 S000000 0
074 T000000 53454
074 U010000 9808
074 U020000 0
074 V010000 5.45
074 V020000 0.00
074 W000000 0.0000
074 X000000 0
074 Y000000 0
075 A000000 0
075 B000000 111994
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 Y
078 000000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 B000000 NATIONAL UNION INSURANCE COMPANY
080 C000000 150000
081 A000000 Y
081 B000000 210
082 A000000 N
<PAGE> PAGE 15
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
087 A010000 SCUDDER GLOBAL HIGH INCOME FUND, INC.
087 A020000 81115E101
087 A030000 LBF
088 A000000 N
088 B000000 N
088 C000000 N
088 D000000 N
SIGNATURE THOMAS F. MCDONOUGH
TITLE SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the Scudder
Global High Income Fund, Inc. Annual Report for the fiscal year ended 10/31/98
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> Scudder Global High Income Fund, Inc.
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> OCT-31-1997
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 76,624,843
<INVESTMENTS-AT-VALUE> 67,762,599
<RECEIVABLES> 11,273,136
<ASSETS-OTHER> 1,409
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 79,037,144
<PAYABLE-FOR-SECURITIES> 1,061,866
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 24,521,784
<TOTAL-LIABILITIES> 25,583,650
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 130,897,453
<SHARES-COMMON-STOCK> 9,807,807
<SHARES-COMMON-PRIOR> 6,155,449
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (68,583,269)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (8,860,690)
<NET-ASSETS> 53,453,494
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 15,623,941
<OTHER-INCOME> 0
<EXPENSES-NET> 2,994,844
<NET-INVESTMENT-INCOME> 12,629,097
<REALIZED-GAINS-CURRENT> (68,733,742)
<APPREC-INCREASE-CURRENT> (4,023,556)
<NET-CHANGE-FROM-OPS> (60,128,201)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (12,088,724)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> (2,539,510)
<NUMBER-OF-SHARES-SOLD> 45,594,929
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 1,893,156
<NET-CHANGE-IN-ASSETS> (27,268,350)
<ACCUMULATED-NII-PRIOR> 31,162
<ACCUMULATED-GAINS-PRIOR> (409,807)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,331,774
<INTEREST-EXPENSE> 1,205,293
<GROSS-EXPENSE> 2,994,844
<AVERAGE-NET-ASSETS> 111,993,773
<PER-SHARE-NAV-BEGIN> 13.11
<PER-SHARE-NII> 1.33
<PER-SHARE-GAIN-APPREC> (7.49)
<PER-SHARE-DIVIDEND> (1.24)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> (0.26)
<PER-SHARE-NAV-END> 5.45
<EXPENSE-RATIO> 2.67
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of Scudder Global High Income Fund, Inc.:
In planning and performing our audit of the financial statements and financial
highlights (hereinafter referred to as "financial statements") of Scudder Global
High Income Fund, Inc. for the year ended October 31, 1998, we considered its
internal control, including control activities for safeguarding securities, in
order to determine our auditing procedures for the purpose of expressing our
opinion on the financial statements and to comply with the requirements of Form
N-SAR, not to provide assurance on internal control.
The management of Scudder Global High Income Fund, Inc. is responsible for
establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally, controls that are
relevant to an audit pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented in conformity with
generally accepted accounting principles. Those controls include the
safeguarding of assets against unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, error or fraud may occur
and not be detected. Also, projection of any evaluation of internal control to
future periods is subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and operation may
deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or more
of the internal control components does not reduce to a relatively low level the
risk that misstatements caused by error or fraud in amounts that would be
material in relation to the financial statements being audited may occur and not
be detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters involving
internal control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above as of
October 31, 1998.
This report is intended solely for the information and use of management, the
Board of Directors of Scudder Global High Income Fund, Inc. and the Securities
and Exchange Commission.
PricewaterhouseCoopers LLP
Boston, Massachusetts /s/PricewaterhouseCoopers LLP
December 14, 1998
INVESTMENT ADVISORY, MANAGEMENT AND
ADMINISTRATION AGREEMENT
AGREEMENT, dated and effective as of September 7, 1998 between
SCUDDER GLOBAL HIGH INCOME FUND, INC., a Maryland corporation (herein referred
to as the "Fund"), and SCUDDER KEMPER INVESTMENTS, INC., a Delaware corporation
(herein referred to as the "Manager").
WITNESSETH:
That in consideration of the mutual covenants herein contained, it is agreed by
the parties as follows:
1. The Manager hereby undertakes and agrees, upon the terms
and conditions herein set forth, (i) to make investment decisions for the Fund,
to prepare and make available to the Fund research and statistical data in
connection therewith and to supervise the acquisition and disposition of
securities by the Fund, including the selection of brokers or dealers to carry
out the transactions, all in accordance with the Fund's investment objectives
and policies and in accordance with guidelines and directions from the Fund's
Board of Directors; (ii) to assist the Fund as it may reasonably request in the
conduct of the Fund's business, subject to the direction and control of the
Fund's Board of Directors; (iii) to maintain or cause to be maintained for the
Fund all books, records, reports and any other information required under the
Investment Company Act of 1940, as amended (the "1940 Act"), to the extent that
such books, records and reports and other information are not maintained or
furnished by the custodian or other agents of the Fund; (iv) to furnish at the
Manager's expense for the use of the Fund such office space and facilities as
the Fund may require for its reasonable needs in the City of New York and to
furnish at the Manager's expense clerical services in the United States related
to research, statistical and investment work; (v) to render to the Fund
administrative services such as preparing reports to and meeting materials for
the Fund's Board of Directors and reports and notices to stockholders, preparing
and making filings with the Securities and Exchange Commission (the "SEC") and
other regulatory and self-regulatory organizations, including preliminary and
definitive proxy materials and post-effective amendments to the Fund's
registration statement on Form N-2 under the Securities Act of 1933, as amended,
and 1940 Act, as amended from time to time, providing assistance in certain
accounting and tax matters and investor and public relations, monitoring the
valuation of portfolio securities, assisting in the calculation of net asset
value and calculation and payment of distributions to stockholders, and
overseeing arrangements with the Fund's custodian, including the maintenance of
books and records of the Fund; and (vi) to pay the reasonable salaries, fees and
expenses of such of the Fund's officers and employees (including the Fund's
shares of payroll taxes) and any fees and expenses of such of the Fund's
directors as are directors, officers or employees of the Manager; provided,
however, that the Fund, and not the Manager, shall bear travel expenses (or an
appropriate portion thereof) of directors and officers of the Fund who are
directors, officers or employees of the Manager to the extent that such expenses
relate to attendance at meetings of the Board of Directors of the Fund or any
committees thereof or advisers thereto. The Manager shall bear all expenses
arising out of its duties hereunder but shall not be responsible for any
expenses of the Fund other than those specifically allocated to the Manager in
this paragraph 1. In particular, but without limiting the generality of the
<PAGE>
foregoing, the Manager shall not be responsible, except to the extent of the
reasonable compensation of such of the Fund's employees as are directors,
officers or employees of the Manager whose services may be involved, for the
following expenses of the Fund: organization and certain offering expenses of
the Fund (including out-of-pocket expenses, but not including overhead or
employee costs of the Manager or of any one or more organizations retained as an
advisor or consultant to the Fund); fees payable to the Manager and to any
advisor or consultants, including an advisory board, if applicable; legal
expenses; auditing and accounting expenses; telephone, telex, facsimile, postage
and other communication expenses; taxes and governmental fees; stock exchange
listing fees; fees, dues and expenses incurred by the Fund in connection with
membership in investment company trade organizations; fees and expenses of the
Fund's custodians, subcustodians, transfer agents and registrars; payment for
portfolio pricing or valuation services to pricing agents, accountants, bankers
and other specialists, if any; expenses of preparing share certificates and
other expenses in connection with the issuance, offering, distribution, sale or
underwriting of securities issued by the Fund; expenses of registering or
qualifying securities of the Fund for sale; expenses relating to investor and
public relations; freight, insurance and other charges in connection with the
shipment of the Fund's portfolio securities; brokerage commissions or other
costs of acquiring or disposing of any portfolio securities of the Fund;
expenses of preparing and distributing reports, notices and dividends to
stockholders; costs of stationery; costs of stockholders' and other meetings;
litigation expenses; or expenses relating to the Fund's dividend reinvestment
and cash purchase plan (except for brokerage expenses paid by participants in
such plan).
2. As exclusive licensee of the rights to use and sublicense
the use of the "Scudder," "Scudder, Stevens & Clark," and "Scudder Kemper
Investments, Inc." trademarks (together, the "Scudder Marks"), the Manager
hereby grants the Fund a nonexclusive right and sublicense to use (i) the
"Scudder" name and mark as part of the Fund's name (the "Fund Name"), and (ii)
the Scudder Marks in connection with the Fund's investment products and
services, in each case only for so long as this Agreement, any other investment
management agreement between the Fund and the Manager (or any organization which
shall have succeeded to the Manager's business as investment manager (the
Manager's Successor")), or any extension, renewal or amendment hereof or thereof
remains in effect, and only for so long as the Manager is a licensee of the
Scudder Marks, provided, however, that the Manager agrees to use its best
efforts to maintain its license to use and sublicense the Scudder Marks. The
Fund agrees that it shall have no right to sublicense or assign rights to use
the Scudder Marks, shall acquire no interest in the Scudder Marks other than the
rights granted herein, that all of the Fund's uses of the Scudder Marks shall
inure to the benefit of Scudder Trust Company as owner and licensor of the
Scudder Marks (the "Trademark Owner"), and that the Fund shall not challenge the
validity of the Scudder Marks or the Trademark Owner's ownership thereof. The
Fund further agrees that all services and products it offers in connection with
the Scudder Marks shall meet commercially reasonable standards of quality, as
may be determined by the Manager or the Trademark Owner from time to time,
provided that the Manager acknowledges that the services and products the Fund
rendered during the one-year period preceding the date of this Agreement are
acceptable. At your reasonable request, the Fund shall cooperate with the
Manager and the Trademark Owner and shall execute and deliver any and all
documents necessary to maintain and protect (including but not limited to in
connection with any trademark infringement action) the Scudder Marks and/or
enter the Fund as a registered user thereof. At such time as this Agreement or
2
<PAGE>
any other investment management agreement shall no longer be in effect between
the Manager (or the Manager's Successor) and the Fund, or the Manager no longer
is a licensee of the Scudder Marks, the Fund shall (to the extent that, and as
soon as, it lawfully can) cease to use the Fund Name or any other name
indicating that it is advised by, managed by or otherwise connected with the
Manager (Manager's Successor) or the Trademark Owner. In no event shall the Fund
use the Scudder Marks or any other name or mark confusingly similar thereto
(including, but not limited to, any name or mark that includes the name
"Scudder") if this Agreement or any other investment advisory agreement between
the Manager (or the Manager's Successor) and the Fund is terminated.
3. The Fund agrees to pay to the Manager in United States
dollars, as full compensation for the services to be rendered and expenses to be
borne by the Manager hereunder, a monthly fee which, on an annual basis, is
equal to 1.20% per annum of the value of the Fund's average weekly net assets.
Each payment of a monthly fee to the Manager shall be made within the ten days
next following the day as of which such payment is so computed. Upon any
termination of this Agreement before the end of a month, the fee for such part
of that month shall be prorated according to the proportion that such period
bears to the full monthly period and shall be payable upon the date of
termination of this Agreement.
The value of the net assets of the Fund shall be determined
pursuant to the applicable provisions of the Articles of Incorporation and
By-laws of the Fund, as amended from time to time.
4. The Manager agrees that it will not make a short sale of
any capital stock of the Fund or purchase any share of the capital stock of the
Fund otherwise than for investment.
5. In executing transactions for the Fund and selecting
brokers or dealers, the Manager shall use its best efforts to seek the best
overall terms available. In assessing the best overall terms available for any
Fund transaction, the Manager shall consider on a continuing basis all factors
it deems relevant, including, but not limited to, breadth of the market in the
security, the price of the security, the financial condition and execution
capability of the broker or dealer and the reasonableness of any commission for
the specific transaction. In selecting brokers or dealers to execute a
particular transaction and in evaluating the best overall terms available, the
Manager may consider the brokerage and research services (as those terms are
defined in Section 28(e) of the Securities Exchange Act of 1934) provided to the
Fund and/or other accounts over which the Manager or an affiliate exercises
investment discretion.
6. Nothing herein shall be construed as prohibiting the
Manager from providing investment advisory services to, or entering into
investment advisory agreements with, other clients (including other registered
investment companies), including clients which may invest in securities issued
by issuers in emerging market countries, or from utilizing (in providing such
services) information furnished to the Manager by advisors and consultants to
the Fund and others; nor shall anything herein be construed as constituting the
Manager as an agent of the Fund.
Whenever the Fund and one or more other accounts or investment
companies advised by the Manager have available funds for investment,
investments suitable and appropriate for each shall be allocated in accordance
3
<PAGE>
with procedures believed by the Manager to be equitable to each entity.
Similarly, opportunities to sell securities shall be allocated in a manner
believed by the Manager to be equitable. The Fund recognizes that in some cases
this procedure may adversely affect the size of the position that may be
acquired or disposed of for the Fund. In addition, the Fund acknowledges that
the persons employed by the Manager to assist in the performance of the
Manager's duties hereunder will not devote their full time to such service and
nothing contained herein shall be deemed to limit or restrict the right of the
Manager or any affiliate of the Manager to engage in and devote time and
attention to other businesses or to render services of whatever kind or nature.
7. The Manager may rely on information reasonably believed by
it to be accurate and reliable. Neither the Manager nor its officers, directors,
employees or agents shall be subject to any liability for any act or omission,
error of judgment or mistake of law, or for any loss suffered by the Fund, in
the course of, connected with or arising out of any services to be rendered
hereunder, except by reason of willful misfeasance, bad faith, or gross
negligence on the part of the Manager in the performance of its duties or by
reason of reckless disregard on the part of the Manager of its obligations and
duties under this Agreement. Any person, even though also employed by the
Manager, who may be or become an employee of the Fund and paid by the Fund shall
be deemed, when acting within the scope of his employment by the Fund, to be
acting in such employment solely for the Fund and not as an employee or agent of
the Manager.
8. This Agreement shall remain in effect for an initial term
ending on September 30, 1999, and shall continue in effect thereafter, but only
so long as such continuance is specifically approved at least annually by the
affirmative vote of (i) a majority of the members of the Fund's Board of
Directors who are not parties to this agreement or interested persons of any
party to this agreement, or of any entity regularly furnishing investment
advisory services with respect to the Fund pursuant to an agreement with any
party to this agreement, cast in person at a meeting called for the purpose of
voting on such approval, and (ii) a majority of the Fund's Board of Directors or
the holders of a majority of the outstanding voting securities of the Fund. This
Agreement may nevertheless be terminated at any time without penalty, on 60
days' written notice, by the Fund's Board of Directors, by vote of holders of a
majority of the outstanding voting securities of the Fund, or by the Manager.
This Agreement shall automatically be terminated in the event
of its assignment, provided that an assignment to a corporate successor to all
or substantially all of the Manager's business or to a wholly-owned subsidiary
of such corporate successor which does not result in a change of actual control
or management of the Manager's business shall not be deemed to be an assignment
for the purposes of this Agreement. Any notice to the Fund or the Manager shall
be deemed given when received by the addressee.
9. This Agreement may not be transferred, assigned, sold or in
any manner hypothecated or pledged by either party hereto, except as permitted
under the 1940 Act or rules and regulations adopted thereunder. It may be
amended by mutual agreement, but only after authorization of such amendment by
the affirmative vote of (i) the holders of a majority of the outstanding voting
securities of the Fund, and (ii) a majority of the members of the Fund's Board
of Directors who are not parties to this agreement or interested persons of any
party to this agreement, or of any entity regularly furnishing investment
4
<PAGE>
advisory services with respect to the Fund pursuant to an agreement with any
party to this agreement, cast in person at a meeting called for the purpose of
voting on such approval.
10. This Agreement shall be construed in accordance with the
laws of the State of New York, without giving effect to the conflicts of laws
principles thereof, provided, however, that nothing herein shall be construed as
being inconsistent with the 1940 Act. As used herein, the terms "interested
person," "assignment," and "vote of a majority of the outstanding voting
securities" shall have the meanings set forth in the 1940 Act.
11. This Agreement may be executed simultaneously in two or
more counterparts, each of which shall be deemed an original, and it shall not
be necessary in making proof of this agreement to produce or account for more
than one such counterpart.
12. This Agreement supersedes all prior investment advisory,
management, and/or administration agreements in effect between the Fund and the
Manager.
IN WITNESS WHEREOF, the parties have executed this Agreement
by their officers thereunto duly authorized as of the day and year first written
above.
SCUDDER GLOBAL HIGH INCOME FUND, INC.
By: _________________________
Vice President
SCUDDER, KEMPER INVESTMENTS, INC.
By: _________________________
Managing Director
5
