Scudder
World Income
Opportunities
Fund, Inc.
Annual Report
April 30, 1995
A closed-end investment company seeking high current income as its primary
objective and capital appreciation as a secondary objective through investment
principally in global income and, to a limited extent, equity securities.
<PAGE>
Scudder World Income
Opportunities Fund, Inc.
- - --------------------------------------------------------------------------------
Investment objectives and policies
o primarily high current income and secondarily capital appreciation through
investment principally in global income and, to a limited extent, equity
securities
Investment characteristics
o closed-end investment company investing principally in a portfolio of
global income and, to a limited extent, equity securities
o a vehicle for international diversification through participation in the
economies of emerging market countries
General Information
- - -------------------------------------------
Executive offices
Scudder World Income Opportunities Fund, Inc.
345 Park Avenue
New York, NY 10154
Telephone:
For Fund information: 1-800-349-4281
Transfer agent, registrar and dividend
reinvestment plan agent
For account information: 617-328-5000
State Street Bank & Trust Company
P.O. Box 8200
Boston, MA 02266-8200 X6406
Custodian
Brown Brothers Harriman & Co.
Legal counsel
Willkie Farr & Gallagher
Independent Accountants
Coopers & Lybrand L.L.P.
New York Stock Exchange Symbol--SWI
Contents
- - --------------------------------------------------------------------------------
Letter to Shareholders 3
Investment Summary 6
Investment Portfolio 7
Financial Statements 10
Financial Highlights 13
Notes to Financial Statements 14
Report of Independent Accountants 18
Dividend Reinvestment Plan 19
Investment Manager
and Administrator 21
Directors and Officers 22
- - --------------------------------------------------------------------------------
This report is sent to the shareholders of Scudder World Income Opportunities
Fund, Inc. for their information. It is not a prospectus, circular, or
representation intended for use in the purchase or sale of shares of the Fund or
of any securities mentioned in the report.
- - --------------------------------------------------------------------------------
2
<PAGE>
Letter to Shareholders
- - --------------------------------------------------------------------------------
Dear Shareholders:
We are pleased to present the annual report for Scudder World Income
Opportunities Fund, Inc. (the "Fund") covering the fiscal year ended April 30,
1995. The favorable momentum established in Latin American and other developing
countries was abruptly halted in late December as Mexico's decision to devalue
and subsequently float the peso sparked a sell-off that spilled over into other
emerging country debt and equity markets. The market sell-off extended into 1995
as the full dimensions of the Mexican crisis became more apparent. Initial
delays by the Mexican authorities in developing an effective economic program,
and delays in assembling a U.S.-led financial support package for Mexico,
brought additional pressure on financial markets and capital flows to key
emerging countries.
Negative market sentiment was reversed in mid-March as Mexico announced a
credible economic program to deal with its crisis and Argentina organized an
international support program to bolster its banking system and its foreign
exchange reserves. Decisive action by economic leaders in Argentina and Mexico
to impose austerity measures and deepen structural reforms bolstered investor
confidence, helping to fuel a strong rally in emerging markets debt that
continued through April.
Fund Performance and Strategy
During the fiscal year ended April 30, 1995, the decline in the Fund's share
price on the New York Stock Exchange from $14.00 to $12.75 was offset by
distributions of $1.62 per share, resulting in a total return of 3.17% based on
the market value of the Fund's shares. The $12.75 price of the shares on April
30, 1995 represented a 5.3% premium to the net asset value (NAV) of the Fund.
The Fund finished the fiscal year with an NAV of $12.11, down from $13.91 on
April 30, 1994. Adjusting for the distributions of $1.62 per share during the
fiscal year, the total return of the Fund based on NAV was -1.37%. Though
disappointing, this return outpaced the -1.69% return of the unmanaged J.P.
Morgan Emerging Markets Bond Index (the "JPM EMBI") during the same period.
Since its inception on April 11, 1994 through April 30, 1995, the Fund has also
outperformed the JPM EMBI, with total returns based on NAV and market value of
- - -3.39% and -3.70%, respectively, compared with the JPM EMBI's total return of
- - -4.03% during the same period.
In the difficult market conditions of late 1994 and early 1995, our strategy
has been to maintain a regionally diversified portfolio. The majority of the
portfolio is invested in sovereign obligations (as of April 30, 87% of debt
investments were U.S. dollar-denominated sovereign obligations). The sovereign
Brady bonds are often backed by U.S. Treasury bonds and, given their large issue
size, are currently among the most liquid instruments in our market. In
addition, emerging markets sovereign obligations tend to be of higher credit
quality than corporate credits. This preference for sovereign debt is of
particular importance as austerity measures in countries such as Argentina and
Mexico result in economic slowdowns which put pressure on the banking and
corporate sectors. Furthermore, as we have seen in the case of Mexico, local
currencies in emerging countries can be susceptible to dramatic devaluations
when there is a loss of confidence in domestic policies. Our strategy has been
to avoid significant exposure to local currencies in these markets and, at April
30, all of the portfolio's debt investments were denominated in hard currencies.
As a defensive measure in declining markets, we also used cash during the period
to protect the portfolio's performance and to allow for the purchase of
securities at attractive valuations.
As panic selling eased in mid-March, and the market began to differentiate
among emerging market issuers on the basis of fundamentals, we sold some
sovereign instruments backed by U.S. Treasury bonds (which were attractive to
investors in declining markets) to buy unguaranteed sovereign obligations which
3
<PAGE>
represent pure country risk. These unguaranteed bonds tend to outperform
collateralized instruments as economic conditions in developing countries
improve. This strategy worked well as uncollateralized sovereign obligations
have been among the best performing emerging markets instruments since the
market turnaround began in March.
The Fund's core Latin American holdings are in Argentina and Brazil
(respectively, 18% and 24% of the portfolio at April 30). The Argentine
government has been effective and decisive in dealing with the spill-over
effects of the Mexican crisis. In the face of significant pressure on the
Argentine peso and strong outflows of capital from the country, the government
cut its spending further, maintained a tight monetary policy and sought
international financial assistance to shore up the banking system and ensure
sufficient foreign exchange with which to service its external debt. In Brazil,
significant challenges remain on the macroeconomic front, particularly with
regard to controlling inflation and dealing with an overvalued currency.
However, the Cardoso administration has embarked upon an ambitious program of
structural reforms, including opening up state monopolies to competition and
opening certain sectors of the economy to foreign investment. Progress toward
implementing this structural reform program has been picking up momentum
recently, which should have a positive effect on prices for Brazilian debt.
Mexico and Venezuela are the other major debt markets in Latin America, but
the Fund has only small holdings in these countries. Prior to the Mexican
devaluation, our holdings in Mexico were quite small (2.1% of the portfolio on
October 31, 1994) as the tight spreads on these securities seemed unattractive
relative to the more generous yields being offered in other emerging markets
with good fundamentals. Our small Mexican exposure helped the portfolio as
Mexican debt prices were particularly hard hit in the aftermath of the
devaluation. Our Mexican position remained small at April 30 (0.5% of the
portfolio) as Mexican spreads were still tight on a relative value basis and we
were concerned that the potentially severe impact of the Mexican economic
program on the banking and corporate sectors could give rise to negative market
sentiment on Mexican debt generally. At April 30, the Fund also had relatively
small holdings in Venezuelan debt (4% of the portfolio). Although there has been
little progress to address Venezuela's economic problems (which include a fiscal
deficit, high inflation and exchange controls), strong oil prices have
buttressed the external debt service capacity of this petroleum-producing
country.
We have continued to diversify the Fund's investments beyond the Latin
American debt markets to other debt markets. The objective of this strategy is
to enhance total return while decreasing price volatility through
diversification. Whereas Latin American securities represented approximately 87%
of debt investments at April 30, 1994, this figure had declined to approximately
60% at April 30, 1995. In line with our diversification strategy, we have
expanded the Fund's investments into Eastern Europe (approximately 17% of the
portfolio at fiscal year-end). For example, in Poland (9% of the portfolio at
fiscal year-end), economic fundamentals are evolving positively and a return to
the international capital markets in the near term is planned. The Fund has
benefited from an overweighted position in Eastern Europe as the Polish and
Bulgarian debt have been among the best performing debt markets recently.
Outlook
In the face of the crisis in late 1994 and early 1995, economic leaders in
developing countries such as Argentina and Mexico have chosen to impose further
austerity and deepen structural reforms in order to safeguard the gains achieved
in recent years toward restoring their countries' creditworthiness and access to
4
<PAGE>
the international capital markets. These measures have bolstered investor
confidence, helping to stabilize financial markets and ease pressures on capital
flows. While the effects of these austerity measures will in certain countries
be reflected in declining growth rates and difficult domestic conditions in the
near term, in many cases these measures are already giving rise to improving
economic fundamentals, which should be reflected in improving prices for
emerging market debt. Recent declines in U.S. dollar interest rates should
further enhance the outlook for emerging country debt markets as investors seek
out the higher yields that these markets offer. We expect that the common stock
component of the portfolio will remain relatively small (6.3% of the portfolio
at fiscal year-end) as emerging markets debt currently offers the potential of
equity-like returns together with a regular income stream.
A Team Approach to Investing
Scudder World Income Opportunities Fund, Inc. is managed by a team of Scudder
investment professionals who each play an important role in the Fund's
management process. Team members work together to develop investment strategies
and select securities for the Fund. They are supported by Scudder's large staff
of economists, research analysts, traders, and other investment specialists who
work in Scudder's offices across the United States and abroad. Scudder believes
its team approach benefits Fund investors by bringing together many disciplines
and leveraging Scudder's extensive resources.
Lincoln Y. Rathnam, Lead Portfolio Manager, sets Fund investment strategy.
Mr. Rathnam joined Scudder in 1984 and has 16 years of experience in global
investing and research. M. Isabel Saltzman and Susan E. Gray, Portfolio
Managers, are responsible for the day-to-day management of the fixed-income
component of the portfolio. Ms. Saltzman, who joined Scudder in 1990, has been
involved in foreign finance and investing since 1979. Ms. Gray, who has over
five years of investment trading and portfolio management experience, has worked
at Scudder since 1987. Joyce E. Cornell, Portfolio Manager, is responsible for
managing the equity component of the Fund's portfolio. Ms. Cornell, who joined
Scudder in 1991, has nine years of experience as a securities analyst.
Dividend Reinvestment Option
The Fund's Dividend Reinvestment Plan (the "Plan") offers you a convenient
way to have your dividends and capital gains distributions reinvested in the
shares of the Fund. Your participation is automatic unless you or the bank,
broker or other nominee holding shares beneficially owned by you specifies
otherwise. We believe this Plan is attractive for shareholders. Its features are
more fully described on page 19.
Other Information
The Fund's NAV is published every Monday in The Wall Street Journal under the
heading "Closed End Funds." The Fund's NAV is also published in The New York
Times and Barron's.
As a Service to overseas shareholders, The Fund's NAV is listed daily in The
Financial Times ("FT"). For your information the NAV of the Fund and other
Scudder managed closed-end funds can be found in the "FT Managed Funds Service"
section under the heading "Other Offshore Funds" below the Scudder, Stevens &
Clark, Inc. banner.
We are pleased that you are an investor in Scudder World Income Opportunities
Fund, Inc. We would be happy to receive any questions or comments. You can reach
us at 1-800-349-4281.
Respectfully,
/s/Lynn S. Birdsong /s/Edmond D. Villani
Lynn S. Birdsong Edmond D. Villani
President Chairman of the Board
5
<PAGE>
Scudder World Income Opportunities Fund, Inc.
Investment Summary as of April 30, 1995
- - --------------------------------------------------------------------------------
Historical
Information
Life of Fund
Total Return (%)
----------------------------------------------
Market Value Net Asset Value*
------------------- -------------------
Average Average
Cumulative Annual Cumulative Annual
------------------- -------------------
Current Quarter 12.74 -- .23 --
One Year 3.17 3.17 -1.37 -1.37
Life of Fund** -3.70 -3.52 -3.39 -3.22
* Total return based on per share net asset value reflects the
effects of changes in net asset value on the performance of the Fund
during each period, and assumes dividends and capital gains distributions,
if any, were reinvested. These percentages are not an indication of the
performance of a shareholder's investment in the Fund based on market
value due to differences between the market price of the stock and the
net asset value of the Fund during each period.
** The Fund commenced operations on April 11, 1994.
Past results are not necessarily indicative of future performance
of the Fund.
- - --------------------------------------------------------------------------------
Diversification by Country (Excludes 6% Cash Equivalents)
Brazil 25%
Argentina 19%
Venezuela 11%
Poland 10%
Morocco 9%
Bulgaria 7%
Panama 5%
Philippines 4%
Peru 3%
Other 7%
----
100%
====
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- - --------------------------------------------------------------------------------
6
<PAGE>
<PAGE>
<TABLE>
SCUDDER WORLD INCOME OPPORTUNITIES FUND, INC.
INVESTMENT PORTFOLIO AS OF APRIL 30, 1995
- - ------------------------------------------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount ($) Value (U.S.$)
- - ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER - 6.4%
365,000 Associates Corp. of North America,
5.873%, 5/1/95.......................................... 365,000
1,000,000 Household Finance Corp., 5.873%, 5/1/95................... 1,000,000
1,200,000 New Center Asset Trust, 5.703%, 5/1/95.................... 1,200,000
---------
TOTAL COMMERCIAL PAPER (Cost $2,565,000).................. 2,565,000
---------
- - ------------------------------------------------------------------------------------------------------------
U.S. DOLLAR-DENOMINATED DEBT - 82.5%
ARGENTINA - 17.6% 1,250,000 Acindar Industries Floating Rate Note, 11.875%,
11/12/98................................................ 775,000
580,000 Bonos del Tesoro, Conea II, Floating Rate Bond,
LIBOR (6.1875%), 9/1/97................................. 513,081
1,000,000 Cedulas Hipotecarias, Floating Rate Bond, 7.9%,
9/1/00.................................................. 750,122
3,000,000 Republic of Argentina, Collateralized Par Bond,
Series L, Step-Up Coupon, 5%, 3/31/23................... 1,308,750
6,250,000 Republic of Argentina, Floating Rate Bond, Series L,
LIBOR plus .8125% (7.3125%), 3/31/05.................... 3,726,563
---------
7,073,516
---------
BRAZIL - 23.5% 1,000,000 Companhia Energetica de Minas Gerais, Series A,
7.875%, 2/10/99......................................... 715,000
1,500,000 Companhia Energetica de Minas Gerais, Series B,
8.25%, 2/10/00.......................................... 1,012,500
3,901,500 Federative Republic of Brazil C Bond, 4% with
4% Interest Capitalization, 4/15/14..................... 1,677,645
4,500,000 Federative Republic of Brazil, Eligible Interest Bond,
LIBOR plus .8125% (7.25%), 4/15/06...................... 2,559,375
5,750,000 Federative Republic of Brazil, Debt Conversion Bond,
Series L, LIBOR plus .875% (7.3125%), 4/15/12........... 2,875,000
250,000 Federative Republic of Brazil, Collateralized Par
Bond, YL4, Step-Up Coupon, 4.25%, 4/15/24............... 99,375
1,000,000 Federative Republic of Brazil, New Money Bond,
LIBOR plus .875% (7.3125%), 4/15/09..................... 513,750
---------
9,452,645
---------
BULGARIA - 6.6% 4,000,000 Republic of Bulgaria, Collateralized Discount
Bond, Tranche A, LIBOR plus .8125% (7.5625%),
7/28/24................................................. 1,870,000
2,000,000 Republic of Bulgaria, Past Due Interest Bond,
LIBOR plus .8125% (7.5625%), 7/28/11.................... 787,500
---------
2,657,500
---------
INDONESIA - 1.1% 500,000 Indah Kiat Pulp and Paper Corp., 8.875%,
11/1/00................................................. 437,500
---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
<TABLE>
SCUDDER WORLD INCOME OPPORTUNITIES FUND, INC.
INVESTMENT PORTFOLIO (CONTINUED)
- - ------------------------------------------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount ($) Value (U.S.$)
- - ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
JAMAICA - 1.9% 888,889 Government of Jamaica Refinancing Agreement,
Tranche A, LIBOR plus .8125% (7.0625%),
10/15/00 (c)............................................ 751,111
----------
JORDAN - 0.8% 500,000 Kingdom of Jordan, Past Due Interest Bond,
LIBOR plus .8125% (5.8125%), 12/23/05................... 300,000
----------
MOROCCO - 8.4% 5,500,000 Kingdom of Morocco, Tranche A, Restructuring
and Consolidation Agreement, LIBOR
plus .8125% (7.375%), 1/1/09 (c)........................ 3,361,875
----------
PANAMA - 4.6% 2,500,000 Republic of Panama, Floating Rate Bond, LIBOR
plus 1% (7.125%), 5/10/02............................... 1,825,000
----------
PHILIPPINES - 3.6% 1,500,000 Philippine Long Distance Telephone, 10.625%,
6/2/04.................................................. 1,455,000
----------
POLAND - 9.2% 4,500,000 Republic of Poland, Past Due Interest Bond, Step-Up
Coupon, 3.25%, 10/27/14................................. 2,126,250
2,250,000 Republic of Poland, Collateralized Discount
Bond, LIBOR plus .8125% (7.125%), 10/27/24.............. 1,546,875
----------
3,673,125
----------
RUSSIA - 1.2% 2,000,000 Vnesheconombank, Bilateral Non-Performing Loan
Agreement (c)*.......................................... 492,500
----------
VENEZUELA - 4.0% 3,500,000 Republic of Venezuela, Debt Conversion Bond,
Series DL, LIBOR plus .875% (7.6875%), 12/18/07......... 1,618,750
----------
TOTAL U.S. DOLLAR-DENOMINATED DEBT
(Cost $36,795,045)...................................... 33,098,522
----------
- - ------------------------------------------------------------------------------------------------------------
U.S. DOLLAR-DENOMINATED CONVERTIBLE DEBT - 4.8%
KOREA - 1.2% 700,000 Ssangyong Oil Refining Co., 3%, 12/31/04.................. 486,500
----------
MALAYSIA - 0.3% 125,000 Telekom Malaysia Berhad, 4%, 10/3/04...................... 106,561
----------
MEXICO - 0.5% 350,000 Banco Nacional de Mexico S.N.C. Convertible
Floating Rate Bond, 7%, 12/15/99........................ 227,500
----------
PERU - 2.8% 1,500,000 Tele 2000 S.A., 9.75%, 4/14/97............................ 1,125,000
----------
TOTAL U.S. DOLLAR-DENOMINATED CONVERTIBLE DEBT
(Cost $2,513,586)....................................... 1,945,561
----------
- - ------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 6.3%
Shares
------
COLOMBIA - 0.5% 24,000 Papeles Nacionales S.A. (GDR)............................. 186,000
----------
VENEZUELA - 5.8% 23,500 Alambres y Cables Venezolanos "C" (Alcave)(b)*............ 2,350,000
----------
TOTAL COMMON STOCKS (Cost $2,782,000)..................... 2,536,000
----------
- - ------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT PORTFOLIO - 100.0%
(Cost $44,655,631) (a).................................. 40,145,083
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
* Non-income producing security.
(a) The cost of the investment portfolio for federal income tax purposes was
$45,259,336. At April 30, 1995, net unrealized depreciation for all
securities based on tax cost was $5,114,253. This consisted of aggregate
gross unrealized appreciation for all securities in which there was an
excess of market value over tax cost of $287,495 and aggregate gross
unrealized depreciation for all securities in which there was an excess of
tax cost over market value of $5,401,748.
(b) Security valued in good faith by the Valuation Committee of the Board of
Directors. The cost of this security at April 30, 1995 was $2,350,000. See
Note A of the Notes to Financial Statements.
(c) These securities represent loan participations which are arranged through
private negotiations between the Fund and a lender. Due to the nature of
these securities they are typically purchased on a forward delivery basis
(Note A), some of which remain unsettled, in whole or in part, at April 30,
1995.
At April 30, 1995 outstanding written call options were as follows (Note A):
<TABLE>
<CAPTION>
Principal Expiration Strike Market
Amount ($) Date Price ($) Value ($)
---------- ---------- --------- ---------
<S> <C> <C> <C> <C>
Republic of Argentina Floating Rate
Bond, 3/31/05............................................... 2,500,000 5/11/95 57.250 78,500
Republic of Argentina Floating Rate
Bond, 3/31/05............................................... 500,000 5/12/95 58.625 11,650
------
Total outstanding written options (Premiums received $50,000) 90,150
======
</TABLE>
Transactions in written call options during the year ended April 30, 1995 were:
<TABLE>
<CAPTION>
Principal Principal Premiums
Amount ($) Amount (Yen) Received ($)
-----------------------------------------------------
<S> <C> <C> <C>
Outstanding at April 30, 1994.......... -- -- --
Contracts written................... 17,000,000 38,000,000 363,563
Contracts closed.................... (7,000,000) (38,000,000) (166,563)
Contracts exercised................. (7,000,000) -- (147,000)
-----------------------------------------------------
Outstanding at April 30, 1995.......... 3,000,000 -- 50,000
========== =========== ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
<TABLE>
SCUDDER WORLD INCOME OPPORTUNITIES FUND, INC.
FINANCIAL STATEMENTS
- - ------------------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995
- - ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments, at market (identified cost $44,655,631) (Note A).................. $40,145,083
Cash........................................................................... 9,026
Receivables:
Interest..................................................................... 880,127
Loan participation sold...................................................... 822,168
Receivable on forward foreign currency exchange contracts to sell
(Note A and E)............................................................. 1,117,203
Deferred organization expenses, net of accumulated amortization of $20,709
(Note A)..................................................................... 77,457
-----------
Total assets............................................................... 43,051,064
LIABILITIES
Payables:
Investments purchased........................................................ $ 312,672
Loan participation purchased................................................. 156,953
Dividends.................................................................... 38,463
Accrued management fee (Note D).............................................. 40,246
Other accrued expenses (Note D).............................................. 47,476
Written options, at market (premiums received $50,000) (Note A).............. 90,150
Payable for forward currency exchange contracts to sell, at market
(contract cost $1,117,203) (Note A and E).................................. 1,091,571
----------
Total liabilities.......................................................... 1,777,531
-----------
Net assets, at market value.................................................... $41,273,533
===========
NET ASSETS
Net assets consist of:
Undistributed net investment income.......................................... $ 439,493
Accumulated net realized loss................................................ (3,033,135)
Unrealized appreciation (depreciation) on:
Investments................................................................ (4,510,548)
Options.................................................................... (40,150)
Foreign currency related transactions...................................... 10,846
Common stock................................................................. 34,093
Additional paid-in capital................................................... 48,372,934
-----------
Net assets, at market value.................................................... $41,273,533
===========
NET ASSET VALUE per share ($41,273,533 / 3,409,266 shares of common stock
outstanding, $.01 par value, 100,000,000 shares authorized).................. $ 12.11
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 1995
- - --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest (net of withholding taxes of $2,567)........................... $ 5,700,427
Expenses:
Management fee (Note D)............................................... $ 557,307
Directors' fees and expenses (Note D)................................. 74,414
Custodian fees........................................................ 103,882
Reports to shareholders............................................... 60,267
Auditing.............................................................. 60,525
Amortization of organization expenses (Note A)........................ 19,651
Legal................................................................. 67,208
Services to shareholders.............................................. 82,846
Other................................................................. 45,125 1,071,225
----------- -----------
Net investment income 4,629,202
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT TRANSACTIONS
Net realized gain (loss) from:
Investments........................................................... (1,891,770)
Options............................................................... 56,737
Foreign currency related transactions................................. 44,637 (1,790,396)
-----------
Net unrealized appreciation (depreciation) during the period on:
Investments........................................................... (3,447,491)
Options............................................................... (40,150)
Foreign currency related transactions................................. 10,846 (3,476,795)
----------- -----------
Net loss on investments................................................. (5,267,191)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (637,989)
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
<TABLE>
SCUDDER WORLD INCOME OPPORTUNITIES FUND, INC.
FINANCIAL STATEMENTS (continued)
- - -----------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- - -----------------------------------------------------------------------------------------------------
<CAPTION>
FOR THE PERIOD
APRIL 11, 1994
YEAR (COMMENCEMENT OF
ENDED OPERATIONS) TO
INCREASE (DECREASE) IN NET ASSETS APRIL 30, 1995 APRIL 30, 1994
- - -----------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income........................................ $ 4,629,202 $ 104,089
Net realized loss from investment transactions............... (1,790,396) (21,859)
Net unrealized depreciation on investment transactions.......
during the period.......................................... (3,476,795) (1,063,057)
------------ ------------
Net decrease in net assets resulting from operations........... (637,989) (980,827)
------------ ------------
Distributions to shareholders from:
Net investment income ($1.24 per share)...................... (4,229,517) --
------------ ------------
Net realized gains from investment transactions
($.38 per share)........................................... (1,285,161) --
------------ ------------
Fund share transactions:
Net proceeds from initial public offering of
Fund shares (Note B)....................................... -- 48,276,000
Reinvestment of distributions................................ 30,632 --
------------ ------------
Net increase in net assets from Fund share transactions........ 30,632 48,276,000
------------ ------------
INCREASE (DECREASE) IN NET ASSETS.............................. (6,122,035) 47,295,173
Net assets at beginning of period.............................. 47,395,568 100,395
------------ ------------
NET ASSETS AT END OF PERIOD (including undistributed net
investment income of $439,493 and $104,089, respectively).... $ 41,273,533 $ 47,395,568
============ ============
OTHER INFORMATION
INCREASE IN FUND SHARES
Shares outstanding at beginning of period...................... 3,406,900 6,900
------------ ------------
Shares issued from initial public offering..................... -- 3,400,000
Shares issued to shareholders in reinvestment of distribution.. 2,366 --
------------ ------------
Shares outstanding at end of period............................ 3,409,266 3,406,900
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
- - ---------------------------------------------------------------------------------------------------
THE FOLLOWING TABLE INCLUDES SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD AND OTHER
PERFORMANCE INFORMATION DERIVED FROM THE FINANCIAL STATEMENTS AND MARKET PRICE DATA.
- - ---------------------------------------------------------------------------------------------------
<CAPTION>
FOR THE PERIOD
APRIL 11, 1994
YEAR (COMMENCEMENT OF
ENDED OPERATIONS) TO
APRIL 30, 1995 APRIL 30, 1994
- - -------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 13.91 $ 14.20(b)
------- -------
Income from investment operations:
Net investment income (a)............................... 1.36 .03
Net realized and unrealized gain (loss) on investment
transactions........................................... (1.54) (.32)
------- -------
Total from investment operations.......................... (.18) (.29)
------- -------
Less distributions from:
Net investment income............................. (1.24) --
Net realized gains on investment transactions..... (.38) --
------- -------
Total distributions....................................... (1.62) --
------- -------
Net asset value, end of period............................ $ 12.11 $ 13.91
======= =======
Market value, end of period............................... $ 12.75 $ 14.00
======= =======
TOTAL RETURN
Per share market value (%)................................ 3.17 (6.67)**
Per share net asset value (%) (c)......................... (1.37) (2.04)**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period ($ millions).................... 41 47
Ratio of operating expenses to average net assets (%)..... 2.30 2.74*
Ratio of net investment income to average net assets (%).. 9.94 3.73*
Portfolio turnover rate (%)............................... 232.8 266.3*
</TABLE>
* Annualized
** Not annualized
(a) Based on monthly average shares outstanding during the period.
(b) Beginning per share amount reflects $15.00 initial public offering price
net of underwriting discount and offering expenses ($0.80 per share).
(c) Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of the Fund during the
period, and assumes dividends and capital gains distributions, if any, were
reinvested. These percentages are not an indication of the performance of a
shareholder's investment in the Fund based on market value due to
differences between the market price of the stock and the net asset value
of the Fund during each period.
13
<PAGE>
SCUDDER WORLD INCOME OPPORTUNITIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS
- - --------------------------------------------------------------------------------
A. SIGNIFICANT ACCOUNTING POLICIES
- - --------------------------------------------------------------------------------
Scudder World Income Opportunities Fund, Inc. (the "Fund") is registered under
the Investment Company Act of 1940, as amended, as a non-diversified, closed-end
management investment company. The policies described below are followed
consistently by the Fund in the preparation of its financial statements in
conformity with generally accepted accounting principles.
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.
All other securities are valued at fair value as determined in good faith by the
Valuation Committee of the Board of Directors although the actual calculation
may be done by others. The securities valued in good faith by the Valuation
Committee of the Board of Directors at fair value amounted to $2,350,000 (5.7%
of net assets) and have been noted in the Investment Portfolio as of April 30,
1995.
OPTIONS. The Fund may write (sell) exchange-listed and over-the-counter call and
put options on securities, securities indices, currencies and other financial
instruments. When the Fund writes a call, it gives the purchaser of the call
option the right to buy the underlying security or currency at the price
specified in the option (the "exercise price") at any time during the option
period, generally ranging up to nine months. When the Fund writes a put option,
it gives the purchaser of the put option the right to sell the underlying
security or currency to the Fund at the exercise price at any time during the
option period, generally ranging up to nine months.
If the option expires unexercised, the Fund will realize income, in the form of
a capital gain, to the extent of the amount received for the option (the
"premium"). If the option is exercised, a decision over which the Fund has no
control, the Fund must sell the underlying security or currency to the option
holder or purchase the underlying security or currency from the option holder at
the exercise price. Certain options, including options on indices will require
cash settlement by the Fund if the option is exercised. By writing a call
option, the Fund foregoes, in exchange for the premium less the commission ("net
premium"), the opportunity to profit during the option period from an increase
in the market value of the underlying security or currency above the exercise
price. By writing a put option, the Fund, in exchange for the net premium
received, accepts the risk of a decline in the market value of the underlying
security or currency below the exercise price.
The liability representing the Fund's obligation under an exchange traded
written call or put option is valued at the last sale price or, in the absence
of a sale, the mean between the closing bid and asked quotations or at the most
recent asked quotation if no bid and asked quotations are available. Over the
counter written options are valued at the most recent asked quotation.
In addition, the Fund may purchase, singly and in combination, call and put
options on securities, securities indices, currencies and other financial
instruments. Exchange traded purchased options are valued at the last sale price
or, in the absence of a sale, the mean between the closing bid and asked
quotations or at the most recent bid quotation if no bid and asked quotations
are available. Over-the-counter purchased options are valued at the most recent
bid quotation.
14
<PAGE>
WHEN-ISSUED AND FORWARD DELIVERY SECURITIES. The Fund may purchase securities on
a when-issued or forward delivery basis, for payment and delivery at a later
date. The price of such securities, which may be expressed in yield terms, is
fixed at the time the commitment to purchase is made, but delivery and payment
take place at a later time. At the time the Fund makes the commitment to
purchase a security on a when-issued or forward delivery basis, it will record
the transaction and reflect the value of the security in determining its net
asset value. During the period between purchase and settlement, no payment is
made by the Fund to the issuer and no interest accrues to the Fund. At the time
of settlement, the market value of the security may be more or less than the
purchase price. The Fund will establish a segregated account in which it will
maintain cash and/or liquid debt securities equal in value to commitments for
when-issued or forward delivery securities.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Fund are maintained
in U.S. dollars. Foreign currency transactions are translated into U.S. dollars
on the following basis:
(i) market value of investment securities, other assets and liabilities at
the daily rates of exchange, and
(ii) purchases and sales of investment securities, dividend and interest
income and certain expenses at the daily rates of exchange prevailing
on the respective dates of such transactions.
The Fund does not isolate that portion of gains and losses on investments which
is due to changes in foreign exchange rates from that which is due to changes in
market prices of the investments. Such fluctuations are included with the net
realized and unrealized gains and losses from investments.
Net realized and unrealized gain (loss) from foreign currency related
transactions includes currency gains and losses between trade and settlement
dates on securities transactions, gains and losses arising from the sales of
foreign currency, and gains and losses between the ex and payment dates on
dividends, interest, and foreign withholding taxes.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS. In connection with portfolio
purchases and sales of securities denominated in a foreign currency, the Fund
may enter into forward foreign currency exchange contracts ("contracts").
Additionally, the Fund may enter into contracts to hedge certain other foreign
currency denominated assets. Contracts are recorded at market value. Certain
risks may arise upon entering into these contracts from the potential inability
of counterparties to meet the terms of their contracts. Realized and unrealized
gains and losses arising from such transactions are included in net realized and
unrealized gain (loss) from foreign currency related transactions.
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 substantially all of its investment company taxable
income to its shareholders. Accordingly, the Fund paid no federal income taxes,
and no federal income tax provision was required.
In addition, from November 1, 1994 through April 30, 1995, the Fund incurred
$2,457,666 of net realized capital losses and $84,933 of net realized currency
losses. As permitted by tax regulations, the Fund intends to elect to defer
these losses and treat them as arising in the fiscal year ended April 30, 1996.
DISTRIBUTION OF INCOME AND GAINS. The Fund's policy is to declare and pay
distributions to shareholders of substantially all net investment income of the
Fund
15
<PAGE>
SCUDDER WORLD INCOME OPPORTUNITIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (continued)
- - --------------------------------------------------------------------------------
quarterly. Net realized gains from investment transactions in excess of
available capital loss carryforwards, which would be taxable to the Fund if not
distributed, will be distributed to shareholders annually. Distributions to
shareholders are recorded on the ex-dividend date. An additional distribution
may be made to the extent necessary to avoid the payment of a four percent
federal excise tax.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax regulations
which may differ from generally accepted accounting principles. These
differences relate primarily to foreign currency denominated investments. 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 specific identification 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 securities transactions are accounted for on a trade-date
basis. Interest income is recorded on the accrual basis. Discount on securities
purchased is accreted on an effective yield basis over the life of the security.
Dividend income is recorded on the ex-dividend date.
B. FUND SHARE TRANSACTIONS
- - --------------------------------------------------------------------------------
The Fund sold a total of 3,400,000 shares of common stock in the initial public
offering. Proceeds to the Fund were $48,276,000 after deducting underwriting
commissions of $1,530,000 ($0.45 per share) and offering expenditures of
$1,194,000 ($0.35 per share). The offering expenditures were charged against
additional paid-in capital.
C. PURCHASES AND SALES OF SECURITIES
- - --------------------------------------------------------------------------------
During the year ended April 30, 1995, purchases and sales of investment
securities (excluding short-term investments) aggregated $99,522,922 and
$95,277,827, respectively.
D. RELATED PARTIES
- - --------------------------------------------------------------------------------
Under the Fund's Investment Advisory, Management and Administration Agreement
(the "Management Agreement") with Scudder, Stevens & Clark, Inc. (the
"Manager"), the Manager directs the investments of the Fund in accordance with
the Fund's investment objectives, policies, and restrictions and under the
direction and control of the Fund`s Board of Directors. In addition to portfolio
management services, the Manager provides certain administrative services in
accordance with the Management Agreement. The Fund pays to the Manager a monthly
fee at an annualized rate of 1.20% of the average weekly net assets of the Fund.
For the year ended April 30, 1995, the fee pursuant to such agreement amounted
to $557,307, of which $40,246 is unpaid at April 30, 1995.
The Fund pays each Director not affiliated with the Manager $6,000 annually,
plus specified amounts for attended board and committee meetings. For the year
ended April 30, 1995, Directors' fees and expenses aggregated $74,414.
16
<PAGE>
E. COMMITMENTS
- - --------------------------------------------------------------------------------
As of April 30, 1995, the Fund had entered into the following forward foreign
currency exchange contracts resulting in net unrealized appreciation of $25,632.
<TABLE>
<CAPTION>
NET UNREALIZED
SETTLEMENT APPRECIATION
CONTRACTS TO DELIVER IN EXCHANGE FOR DATE (U.S.$)
- - ---------------------------- ----------------------------- ------------ ----------------
<S> <C> <C> <C> <C> <C>
French franc 5,400,000 U.S. Dollars 1,117,203 7/10/95 25,632
</TABLE>
F. CREDIT RISK
- - --------------------------------------------------------------------------------
The yields of emerging country debt obligations reflect perceived credit risk,
the need to compete with other local investments in potentially illiquid
domestic financial markets and the difficulty in raising hard currencies to meet
external debt servicing requirements. The consequences of political, social,
economic or diplomatic changes may have disruptive effects on the market prices
of investments held by the Fund.
G. QUARTERLY RESULTS OF OPERATIONS (000 OMITTED) (UNAUDITED)
<TABLE>
<CAPTION>
Net Increase
NET GAIN (LOSS) (DECREASE) IN NET
QUARTER INVESTMENT NET INVESTMENT ON INVESTMENT ASSETS RESULTING
ENDED INCOME INCOME TRANSACTIONS FROM OPERATIONS
- - ------- ---------- -------------- -------------- -----------------
PER PER PER PER
FISCAL 1995 TOTAL SHARE TOTAL SHARE TOTAL SHARE TOTAL SHARE
- - ----------- ----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
July 31, 1,501 .44 1,182 .35 (1,574) (.46) (392) (.11)
October 31, 1,315 .39 1,035 .30 3,354 .98 4,389 1.28
January 31, 1,414 .42 1,174 .34 (5,902) (1.72) (4,728) (1.38)
April 30, 1,470 .42 1,238 .37 (1,145) (.34) 93 .03
------- ------ ------- ----- -------- ------- ------ ------
Totals $5,700 $1.67 $4,629 $1.36 $(5,267) $(1.54) $ (638) $ (.18)
====== ===== ====== ===== ======= ====== ======= ======
<CAPTION>
PER PER PER PER
FISCAL 1994* TOTAL SHARE TOTAL SHARE TOTAL SHARE TOTAL SHARE
- - ----------- ----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
April 30, $ 181 $ .05 $ 104 $ .03 $(1,085) $ (.32) $ (981) $ (.29)
====== ===== ====== ===== ======= ====== ======= ======
</TABLE>
* For the period April 11, 1994 (commencement of operations) to April 30, 1994.
17
<PAGE>
SCUDDER WORLD INCOME OPPORTUNITIES FUND, INC.
REPORT OF INDEPENDENT ACCOUNTANTS
- - --------------------------------------------------------------------------------
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF SCUDDER WORLD INCOME OPPORTUNITIES
FUND, INC.:
We have audited the accompanying statement of assets and liabilities of Scudder
World Income Opportunities Fund, Inc., including the investment portfolio, as of
April 30, 1995, the related statement of operations for the year then ended, the
statements of changes in net assets and the financial highlights for the year
then ended and for the period April 11, 1994 (commencement of operations) to
April 30, 1994. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements.
Our procedures included confirmation of securities owned as of April 30, 1995,
by correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Scudder World Income Opportunities Fund, Inc. as of April 30, 1995, the results
of its operations for the year then ended, the changes in its net assets and
financial highlights for the year ended and for the period April 11, 1994
(commencement of operations) to April 30, 1994 in conformity with generally
accepted accounting principles.
Boston, Massachusetts COOPERS & LYBRAND L.L.P.
June 15, 1995
18
<PAGE>
Scudder World Income Opportunities Fund, Inc.
Dividend Reinvestment Plan
- - --------------------------------------------------------------------------------
The Plan
The Fund's Dividend Reinvestment Plan (the "Plan") offers you an automatic
way to reinvest your dividends and capital gains distributions in shares of the
Fund.
Automatic Participation
Each shareholder of record is automatically a participant in the Plan unless
the shareholder has instructed the Plan Agent in writing otherwise. Such a
notice must be received by the Plan Agent not less than 10 days prior to the
record date for a dividend or distribution in order to be effective with respect
to that dividend or distribution. A notice which is not received by that time
will be effective only with respect to subsequent dividends and distributions.
Shareholders who do not participate in the Plan will receive all
distributions in cash paid by check in dollars mailed directly to the
shareholder by State Street Bank and Trust Company, as dividend paying agent.
Shares Held by a Nominee
If your shares are held in the name of a brokerage firm, bank, or other
nominee as the shareholder of record, please consult your nominee (or any
successor nominee) to determine whether it is participating in the Plan on your
behalf. Many nominees are generally authorized to receive cash dividends unless
they are specifically instructed by a client to reinvest. If you would like your
nominee to participate in the Plan on your behalf, you should give your nominee
instructions to that effect as soon as possible.
Pricing of Dividends and Distributions
If the market price per share on the payment date for the dividend or
distribution (the "Valuation Date") equals or exceeds net asset value per share
on that date, the Fund will issue new shares to participants at the greater of
the following on the Valuation Date: (a) net asset value, or (b) 95% of the
market price. The Valuation Date will be the dividend or distribution payment
date or, if that date is not a New York Stock Exchange trading date, the next
preceding trading date. If the net asset value exceeds the market price of Fund
shares at such time, participants in the Plan are considered to have elected to
receive shares of stock from the Fund, valued at market price, on the Valuation
Date. In either case, for Federal income tax purposes, the shareholder receives
a distribution equal to the market value on Valuation Date of new shares issued.
State and local taxes may also apply. If the Fund should declare an income
dividend or net capital gains distribution payable only in cash, the Plan Agent
will, as agent for the participants, buy Fund shares in the open market, on the
New York Stock Exchange or elsewhere, for the participants' account on, or
shortly after, the payment date.
Participant Plan Accounts
The Plan Agent maintains all participant accounts in the Plan and furnishes
written confirmation of all transactions in the account, including information
needed by participants for personal and tax records. Shares in the account of
each plan participant will be held by the Plan Agent in non-certificated form in
the name of the participant, and each participant will be able to vote those
shares purchased pursuant to the Plan at a shareholder meeting or by proxy.
No Service Fee to Reinvest
There is no service fee charged to participants for reinvesting dividends or
distributions from net realized capital gains. The Plan Agent's fees for the
handling of the reinvestment of dividends and capital gains distributions will
be paid by the Fund. There will be no brokerage commissions with respect to
shares issued directly by the Fund as a result of dividends or capital gains
distributions payable either in stock or in cash. However, participants will pay
a pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of any
dividends or capital gains distributions payable only in cash.
19
<PAGE>
Amendment or Termination
The Fund and the Plan Agent each reserve the right to terminate the Plan.
Notice of the termination will be sent to the participants of the Plan at least
30 days before the record date for a dividend or distribution. The Plan also may
be amended by the Fund or the Plan Agent, but (except when necessary or
appropriate to comply with applicable law, rules or policies of a regulatory
authority) only by giving at least 30 days' written notice to participants in
the Plan.
A participant may terminate his account under the Plan by written notice to
the Plan Agent. If the written notice is received 10 days before the record day
of any distribution, it will be effective immediately. If received after that
date, it will be effective as soon as possible after the reinvestment of the
dividend or distribution.
If a participant elects to sell his shares before the Plan is terminated, the
Plan Agent will deduct a $2.50 fee plus brokerage commissions from the sale
transaction.
Plan Agent Address and Telephone Number
You may obtain more detailed information by requesting a copy of the Plan
from the Plan Agent. All correspondence (including notifications) should be
directed to: Scudder World Income Opportunities Fund, Inc. Dividend Reinvestment
Plan, c/o State Street Bank and Trust Company, P.O. Box 8200, Boston, MA
02266-8200, (617) 328-5000, ext. 6406.
20
<PAGE>
Investment Manager and Administrator
- - --------------------------------------------------------------------------------
The investment manager and administrator of Scudder World Income
Opportunities Fund, Inc. (the "Fund") is Scudder, Stevens & Clark, Inc., one of
the most experienced investment management and investment counsel firms in the
United States. Established in 1919, the firm provides investment counsel for
individuals, investment companies and institutions. Scudder has offices
throughout the United States and subsidiaries in London and Tokyo.
Scudder has been active in international investment management for over 40
years. It manages Scudder International Fund, which was initially incorporated
in Canada in 1953 as the first foreign investment company registered with the
United States Securities and Exchange Commission. Scudder's investment company
clients include seven other open-end investment companies which invest
worldwide.
In addition to the Fund, Scudder also manages the assets of seven other
closed-end investment companies which invest in foreign securities: The
Argentina Fund, Inc. (investing primarily in equity securities of Argentine
issuers), The Brazil Fund, Inc. (investing in securities, primarily equity
securities, of Brazilian issuers), The First Iberian Fund, Inc. (investing
primarily in Spanish and Portuguese equity securities), The Korea Fund, Inc.
(investing in a broad spectrum of Korean companies), The Latin America Dollar
Income Fund, Inc. (investing principally in Latin American debt instruments),
Scudder New Asia Fund, Inc. (investing in a broad spectrum of Asian companies),
and Scudder New Europe Fund, Inc. (investing in equity securities traded in
smaller or emerging European securities markets).
21
<PAGE>
Directors and Officers
- - --------------------------------------------------------------------------------
EDMOND D. VILLANI*
Chairman of the Board and Director
LYNN S. BIRDSONG*
President and Director
ROBERT J. BOYD
Director
ROBERT J. CALLANDER
Director
GEORGE M. LOVEJOY, JR.
Director
RONALDO A. DA FROTA NOGUEIRA
Director
SUSAN KAUFMAN PURCELL
Director
JERARD K. HARTMAN*
Vice President
DAVID S. LEE*
Vice President
JURIS PADEGS*
Vice President
LINCOLN Y. RATHNAM*
Vice President
M. ISABEL SALTZMAN*
Vice President
PAUL J. ELMLINGER*
Vice President and Assistant Secretary
EDWARD J. O'CONNELL*
Vice President and Assistant Treasurer
KATHRYN L. QUIRK*
Vice President and Assistant Secretary
THOMAS F. McDONOUGH*
Secretary
PAMELA A. McGRATH*
Treasurer
COLEEN DOWNS DINNEEN*
Assistant Secretary
* Scudder, Stevens & Clark, Inc.
22
