-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IbWuMbYVFd+oQvfBc0IOpPlbhR9m0H5gW7OPsAs4U1iyXseMlPhbkOaTpMfdgofk YOcySaCO8Iwj7Rv9AmpMLQ== /in/edgar/work/20000825/0000088053-00-000940/0000088053-00-000940.txt : 20000922 0000088053-00-000940.hdr.sgml : 20000922 ACCESSION NUMBER: 0000088053-00-000940 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000825 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCUDDER NEW ASIA FUND INC CENTRAL INDEX KEY: 0000798738 STANDARD INDUSTRIAL CLASSIFICATION: [0000 ] IRS NUMBER: 133410777 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-04789 FILM NUMBER: 710203 BUSINESS ADDRESS: STREET 1: 345 PARK AVE CITY: NEW YORK STATE: NY ZIP: 10154 BUSINESS PHONE: 2123266200 FORMER COMPANY: FORMER CONFORMED NAME: JAPAN ASIA SPECIAL FUND INC DATE OF NAME CHANGE: 19870518 N-30D 1 0001.txt SEMIANNUAL REPORT - SCUDDER NEW ASIA FUND, INC. [LOGO] SCUDDER NEW ASIA FUND, INC. Semiannual Report June 30, 2000 A closed-end investment company seeking long-term capital appreciation through investment primarily in the equity securities of Asian companies. [LOGO] Scudder New Asia Fund, Inc. ================================================================================ Investment objective and policies o long-term capital appreciation through investment primarily in the equity securities of Asian companies Investment characteristics o a closed-end investment company investing in a broad spectrum of Asian companies and industries o a vehicle for international diversification through participation in Asian stock markets [LOGO] General Information ================================================================================ Executive Offices Scudder New Asia Fund, Inc. 345 Park Avenue New York, NY 10154 For Fund Information: 1-800-349-4281 Transfer Agent, Registrar and Dividend Reinvestment Plan Agent For Account Information: 1-800-426-5523 EquiServe P.O. Box 8200 Boston, MA 02266-8200 Custodian Brown Brothers Harriman & Co. Legal Counsel Dechert Price & Rhoads Independent Accountants PricewaterhouseCoopers LLP New York Stock Exchange Symbol -- SAF [LOGO] Contents ================================================================================ Letter to Stockholders ........................................... 3 Other Information ................................................ 5 Investment Summary ............................................... 7 Portfolio Summary ................................................ 8 Investment Portfolio ............................................. 9 Financial Statements ............................................. 14 Financial Highlights ............................................. 17 Notes to Financial Statements .................................... 18 Report of Independent Accountants................................. 21 Dividend Reinvestment and Cash Purchase Plan ................................................. 22 Directors and Officers ........................................... 24 - -------------------------------------------------------------------------------- This report is sent to the stockholders of Scudder New Asia 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 [LOGO] Scudder New Asia Fund, Inc. Letter to Stockholders ================================================================================ Dear Stockholders: Pacific Basin equities fell during the first half of 2000 in reaction to the sell-off in the Nasdaq index in the United States. Although local factors also came into play -- for instance, concerns over the health of the Korean financial system and questions over the direction of the new Taiwanese government -- the overriding factor in the performance of the Asian markets was the sell-off in technology stocks worldwide. While the fluctuations of U.S. equities have influenced all global markets, the impact was particularly acute in Asia, where technology and telecommunications stocks make up a large portion of the indices, especially in Taiwan, Korea, and China. Stocks in the region staged a strong rebound in June behind a recovery in the global technology sector, but all of the major indices finished the period well off their highs. These fluctuations led to increased volatility for the fund, which continues to hold a substantial weighting in technology and communications shares. On the plus side, our top three holdings -- Samsung Electronics, SK Telecom, and China Mobile -- all produced strong performance. In this environment, the fund's net asset value fell 13.08% for the six-month period ended June 30, 2000, beating the -14.15% return of the fund's unmanaged benchmark, which is comprised of 75% MSCI All Country Asia Free Index and 25% MSCI Japan Index. The Fund's NYSE share price declined 23.00% to end the period at $14.69, representing a discount of 27.2% to NAV. Fund Strategy and Positioning Although techs and telecoms slumped in March and April, the fund was helped by its position in these sectors over the full period. Within the tech group, we focus on companies with strong business franchises and management teams that possess real world experience. Our position is concentrated in technology enablers, wireless communications providers, companies that make the "nuts and bolts" of the communications infrastructure, and contract manufacturers in Korea, Taiwan, and Singapore. While Asia's tech sector is very volatile, we believe that it is worth taking on the additional risk to participate in what is its substantial long-term upside. We are also overweighted in consumer stocks, which we believe will stand to benefit from the region's economic recovery and expanding levels of domestic consumption. Included in this group are retailers, cellular phone operators in the largest markets, and banks that cater to a high-end clientele. Going forward, we intend to maintain an overweight position in companies with exposure to the domestic economy, as well as leading exporters of industrial products and services. Another key theme that distinguishes the portfolio is our investments in companies that have seized the initiative to improve their competitive positions. We expect that as the region's recovery continues to gain momentum, there will be an increasing differentiation between companies with strong fundamentals, and those whose stock prices have merely been lifted by the improving economic backdrop. For that reason, we are confident that a bottom-up approach that focuses on fundamentals and on-the-ground research will be well suited to the stockpicker's market that we see emerging over the remainder of the year. On the down side, our overweighted positions in Taiwan and Korea detracted from performance, since both markets were impacted negatively by country-specific factors. In Taiwan, for instance, the recent presidential election and its resulting implications for the country's relations with China have put downward pressure on the market. And in Korea, investors remain concerned about the health of the banking system. Nevertheless, we remain optimistic on the prospects for the stocks that we hold in these two countries. Korea is particularly attractive in terms of both its valuations and its earnings growth. Even more important, the country is undergoing significant changes 3 [LOGO] Scudder New Asia Fund, Inc. Letter to Stockholders ================================================================================ in its corporate culture. While in the past the large chaebols dominated the country's business environment -- absorbing capital, manpower, and natural resources -- today, due in part to the growth of the Internet, we are seeing the evolution of a more dynamic, entrepreneurial environment. College graduates no longer look for lifetime employment at the chaebols; instead they want to join start-ups or found their own companies. Over time, we believe that this type of positive fundamental change is more important than the day-to-day fluctuations of stock prices. Taking Advantage of Volatility We were buyers during the spring correction, which allowed the fund to benefit when the tech sector rebounded in June. We added to our top holdings -- particularly Samsung Electronics, SK Telecom, and China Mobile -- and we made a marginal increase in our holdings in the financial sector by buying shares of HSBC (United Kingdom) and JCG (Hong Kong), which we believe are positioned to benefit from the improving Chinese economy, as well as DBS (Singapore) and Standard Chartered, a United Kingdom based bank with extensive operations in Singapore. At the same time, we trimmed or eliminated positions in smaller companies in which we have a lower level of conviction. We see downdrafts in the region's markets as a buying opportunity for the simple reason that the improving fundamentals and positive earnings momentum of many top companies is not being fully reflected in their stock prices. In general, the valuations of Asian companies are dramatically better than valuations in the U.S., but yet they tend to fall just as far as American companies during corrections. If the S&P 500 Index is valued at 30 times earnings, and Korea's market is valued at less than 10 times, why should a 2% drop in the U.S. translate into a 2% drop in Korea? It shouldn't necessarily, but it has in recent months because local sentiment -- especially among retail investors -- has been a more important driver of market performance than fundamentals. As bottom-up investors, we welcome this anomaly as an opportunity to add to positions in quality companies whose prices are being impacted by external factors. Outlook Although volatility in the U.S. should continue to drive the near-term performance of Asia's markets, our long-term outlook for the region remains favorable. Growth continues to improve, exports are up, inflation is benign, and the rapid growth of the consumer culture is leading to a stronger, more diverse economy. At the individual company level, we are enthusiastic about increasingly efficient management practices and the growing acceptance of restructuring as a means to boost profits. These factors, in turn, should increase the flow of foreign assets into the region, which over time will help provide financing for companies that are investing for the future. As a result, we continue to believe that corporate earnings growth will exceed expectations over the balance of 2000. We therefore urge investors to maintain a long-term outlook even when the markets are falling. While we expect that the shifting U.S. interest rate outlook will continue to roil the global markets in the near-term, we expect that Asia will remain the source of attractive investment opportunities for many years to come. Respectfully, /s/Nicholas Bratt /s/Daniel Pierce Nicholas Bratt Daniel Pierce President Chairman of the Board and Director 4 [LOGO] Scudder New Asia Fund, Inc. Other Information ================================================================================ Investment Manager The investment manager of Scudder New Asia Fund, Inc. is Scudder Kemper Investments, Inc. (the "Manager"), one of the most experienced investment management firms in the world. Established in 1919, the firm manages investments for institutional and corporate clients, retirement and pension plans, insurance companies, mutual fund investors, and individuals. The Manager has offices throughout the United States and has subsidiaries in the United Kingdom, Switzerland, Hong Kong, and Japan. The Manager has been a leader in international investment management for over 40 years. It manages Scudder International Fund, which was originally incorporated in Canada in 1953 as the first foreign investment company registered with the United States Securities and Exchange Commission. The Manager's clients that invest primarily in foreign securities include thirty open-end investment companies as well as portfolios for institutional investors. The Manager also manages the assets of other closed-end investment companies that invest primarily in foreign securities, including: The Argentina Fund, Inc., The Brazil Fund, Inc., The Korea Fund, Inc., and Scudder Global High Income Fund, Inc. On April 5, 2000, the Directors of the fund approved a Research and Advisory Agreement between the Manager and Scudder Investments Singapore, Limited, a wholly owned subsidiary of the Manager ("Scudder Investments Singapore"), which would serve as sub-adviser to the fund. Scudder Investments Singapore has registered with the U.S. Securities and Exchange Commission as an investment adviser under the Investment Company Act of 1940, as amended, and is expected to serve as sub-adviser to the fund on or about September 1, 2000. Scudder Investments Singapore is expected to render investment advisory and management services with regards to the portion of the fund's portfolio as allocated by the Manager. A Team Approach to Investing Scudder New Asia Fund, Inc. is managed by a team of Scudder Kemper investment professionals who each play an important role in the fund's management process. Team members work together to develop investment strategies and select securities for the fund's portfolio. They are supported by the Manager's large staff of economists, research analysts, traders, and other investment specialists who work in the Manager's offices across the United States and abroad. The Manager believes the team approach benefits fund investors by bringing together many disciplines and leveraging its extensive resources. Lead Portfolio Manager Tien-Yu Sieh assumed responsibility for the fund's day-to-day management and investment strategies in 1999. Mr. Sieh joined the Manager in 1996, and has eight years of experience in the investment industry. Portfolio Manager Theresa Gusman joined the Manager in 1995 and the fund team in 1996. Ms. Gusman has 17 years of investment industry experience. Portfolio Manager Elizabeth J. Allan joined the Manager and the fund in 1987. Ms. Allan has 18 years of Pacific Basin research and investment management experience. Nicholas Bratt, Portfolio Manager, has been a member of the fund's team since 1987 and helps set the fund's general investment strategies. Mr. Bratt has over 27 years of experience in worldwide investing, including 26 years of experience as a portfolio manager, and has been with the Manager since 1976. Dividend Reinvestment Plan The fund's Dividend Reinvestment and Cash Purchase Plan offers you a convenient way to have your dividends and capital gain distributions reinvested in shares of the fund. We believe this Plan is attractive for stockholders. Its features are more fully described on page 22. 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 New Asia Fund Dividend 5 [LOGO] Scudder New Asia Fund, Inc. Other Information ================================================================================ Reinvestment and Cash Purchase Plan, c/o EquiServe, P.O. Box 8200, Boston, MA 02266-8200, (800) 426-5523. Net Asset Value The fund's NAV is published every weekday 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 stockholders, 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 Kemper Investments, Inc. banner. 6 [LOGO] Scudder New Asia Fund, Inc. Investment Summary as of June 30, 2000 ================================================================================ Historical Information Total Return (%) ----------------------------------------------- Market Value Net Asset Value(a) ---------------------- --------------------- Average Average Cumulative Annual Cumulative Annual ---------------------- --------------------- Current Quarter -16.41 -- -15.64 -- One Year 3.87 3.87 22.96 22.96 Three Year 9.16 2.96 26.95 8.28 Five Year 11.93 2.28 48.74 8.26 Ten Year 85.36 6.37 112.59 7.83 - -------------------------------------------------------------------------------- Per Share Information and Returns(a) Yearly periods ended June 30 A chart in the form of a bar graph appears here, illustrating the Fund Total Return (%) with the exact data points listed in the table below. 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 -------------------------------------------------------------------------------- Net Asset Value... $15.68 $15.49 $17.93 $22.44 $16.00 $16.06 $17.26 $10.28 $17.03 $20.16 Income Dividends.. $ .08 $ .08 $ .08 $ .48 $ .02 $ .02 $ .03 $ .15 $ -- -- Capital Gains Distributions..... $ 1.93 $ .15 $ .52 $ -- $ 5.06 $ .87 $ .37 $ .29 $ -- $ 0.61 Total Return (%).. -2.03 .28 20.28 27.88 -5.41 5.70 10.85 -37.67 65.66 22.96
(a) Total investment returns reflect changes in net asset value per share during each period and assume that 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 price. Past results are not necessarily indicative of future performance of the Fund. 7 [LOGO] Scudder New Asia Fund, Inc. Portfolio Summary as of June 30, 2000 ================================================================================ Diversification Common Stocks 99% Other 1% ---- 100% ==== A graph in the form of a pie chart appears here, illustrating the exact data points in the above table. Geographical breakdown of the Fund's equity securities - -------------------------------------------------------- Japan 34% Hong Kong 18% Korea 16% Taiwan 12% India 8% Singapore 4% United Kingdom 4% Malaysia 2% China 1% Other 1% ---- 100% ==== A graph in the form of a pie chart appears here, illustrating the exact data points in the above table. Sector breakdown of the Fund's equity securities - -------------------------------------------------------- Technology 38% Communication 19% Financial 18% Manufacturing 12% Consumer Discretionary 3% Consumer Staples 3% Health 4% Service Industries 1% Metals and Minerals 1% Other 1% ---- 100% ==== A graph in the form of a pie chart appears here, illustrating the exact data points in the above table. - --------------------------------------------------------------------------- Ten Largest Equity Holdings (33% of Portfolio) 1. Samsung Electronics Co. Electronics manufacturer 2. SK Telecom Co., Ltd. Provider of mobile telecommunications services 3. China Telecom, Ltd. Provider of cellular telecommunication services 4. Infosys Technologies Ltd. Financial and industrial software developer 5. Satyam Computer Services Ltd. Provider of software services 6. NTT Docomo, Inc. Provider of various telecommunication services and equipment 7. Chartered Semiconductor Provider of wafer fabrication services to semiconductor suppliers 8. Standard Chartered PLC International banking group 9. NEC Corp. Manufacturer of telecommunication and computer equipment 10. HSBC Holdings PLC International banking and financial services company 8 [LOGO] Scudder New Asia Fund, Inc. Investment Portfolio as of June 30, 2000 ================================================================================
Units Value ($) - -------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------- LIMITED PARTNERSHIP 0.1% Japan JAFCO No. 6 Investment Enterprise Partnership (Venture capital company) (Cost $495,323) (b) .............................................................. 1 159,058 ------------ - -------------------------------------------------------------------------------------------------------------- Shares ---------- COMMON STOCKS 99.9% China 0.6% Nanjing Panda Electronics Co., Ltd. "H" (Developer, manufacturer and marketer of electronics and telecommunications products) ......................... 2,956,000 1,061,727 ------------ Hong Kong 18.3% ASM Pacific Technology Ltd. (Manufacturer of machinery for the production of semiconductors) ............................................................... 481,000 1,801,683 Cheung Kong Holdings Ltd. (Real estate company) .................................... 6,000 65,999 China Mobile Ltd.* (Provider of cellular telecommunication services) ............... 854,000 7,531,492 China Unicom* (Provider of telecommunications services) ............................ 1,282,000 2,705,231 Dao Heng Bank Group Ltd. (Bank) .................................................... 221,000 978,052 Esprit Holdings Ltd. (Designer and manufacturer of high quality fashion products) .. 1,419,087 1,483,601 Giordano International Ltd. (Retailer of casual apparel) ........................... 1,324,653 2,013,517 Hongkong Land Holdings, Ltd. (Investor in commercial property) ..................... 252,000 403,200 Hutchison Whampoa, Ltd. (Diversified investment holding company) ................... 222,200 2,793,319 JCG Holdings Ltd. (Bank) ........................................................... 3,450,000 1,725,974 Legend Holdings Ltd. (Manufacturer of computers and related products) .............. 1,438,000 1,392,696 Li & Fung Ltd. (Exporter of consumer products) ..................................... 624,000 3,121,761 New World Development Co., Ltd. (Property investment and development company) ...... 7,097 7,875 Next Media Ltd. (Publisher) ........................................................ 4,315,000 658,686 Pacific Century CyberWorks Ltd. (Provider of Internet services) .................... 1,171,000 2,313,279 QPL International Holdings Ltd. (Manufacturer of leadframes and integrated circuits) 1,298,000 1,864,847 Quality Healthcare Asia Ltd.* (Provider of medical coverage services) .............. 2,755,000 812,830 SmarTone Telecommunications Holdings Ltd. (Cellular communication services) ........ 1,214 2,686 Sunevision Holdings Ltd.* (Provider of Internet infrastructure and services) ....... 925,500 753,877 ------------ 32,430,605 ------------ India 8.4% Aptech Ltd. (Provider of professional education services) .......................... 369 6,991
The accompanying notes are an integral part of the financial statements. 9 [LOGO] Scudder New Asia Fund, Inc. Investment Portfolio ================================================================================
Shares Value ($) - -------------------------------------------------------------------------------------------------------------- Global Tele-Systems Limited (Manufacturer of telecommunication products and services) ...................................................................... 34,600 1,037,303 Hero Honda Motors Ltd. (Manufacturer of motorized two wheelers) ...................... 80 1,769 Hindalco Industries Ltd. (Miner/refiner of aluminum) ................................. 78,200 1,382,993 Infosys Technologies Ltd. (Financial and industrial software developer) .............. 25,900 4,825,492 NIIT Ltd. (Designer and distributor of computer software) ............................ 40,800 2,019,760 Ranbaxy Laboratories, Ltd. (Manufacturer and distributor of pharmaceutical products) . 86,000 1,110,584 Rediff.Com India Limited (ADR)* (Provider of Internet destinations focused on the global Indian community) ....................................................... 14,448 202,272 Satyam Computer Services Ltd. (Provider of software services) ........................ 66,100 4,415,006 ------------ 15,002,170 ------------ Japan 33.9% Advantest Corp. (Producer of measuring instruments and semiconductor testing devices) ................................................................... 8,300 1,853,851 Chugai Pharmaceutical Co., Ltd. (Pharmaceutical company) ............................. 76,000 1,439,108 DDI Corp. (Provider of telecommunication services) ................................... 196 1,888,086 Fujisawa Pharmaceutical Co. (Manufacturer and marketer of antibiotics) ............... 38,000 1,539,595 Fujitsu, Ltd. (Manufacturer of computers) ............................................ 84,000 2,911,460 Japan Securities Finance Co., Ltd. (Provider of securities related financing services) 265,000 1,504,132 Kyocera Corp. (Manufacturer of ceramic packaging) .................................... 21,100 3,584,918 Matsushita Communication Industrial Co., Ltd. (Manufacturer of mobile and car audio telecommunications equipment) ................................................ 11,000 1,286,112 Matsushita Electric Industrial Co., Ltd. (Manufacturer of consumer electronic products) .......................................................................... 51,000 1,324,550 Megachips Corp. (Manufacturer and marketer of various types of LSI's) ................ 45,000 2,205,695 Murata Manufacturing Co., Ltd. (Manufacturer of ceramic applied electronic computers) ......................................................................... 11,000 1,581,149 NEC Corp. (Manufacturer of telecommunication and computer equipment) ................. 119,000 3,742,456 NSK Ltd. (Manufacturer of bearings and motor vehicle machine parts) .................. 251,000 2,204,561 NTT Mobile Communications Network, Inc. (Provider of various telecommunication services and equipment) ............................................................ 158 4,282,571 Nikko Securities Co., Ltd. (Securities broker and dealer) ............................ 263,000 2,608,018 Nintendo Co., Ltd. (Manufacturer of game equipment) .................................. 10,500 1,836,521 Nomura Securities Co., Ltd. (Financial adviser, securities broker and underwriter) ... 109,000 2,671,341 Orix Corp. (Major leasing company) ................................................... 6,400 945,932 Rohm Company Ltd. (Maker of linear ICs and semiconductors) ........................... 5,900 1,727,346 Sakura Bank, Ltd. (Provider of banking services) ..................................... 355,000 2,457,525 Sharp Corp. (Manufacturer of consumer and industrial electronics) .................... 104,000 1,841,621
The accompanying notes are an integral part of the financial statements. 10 [LOGO] Scudder New Asia Fund, Inc. Investment Portfolio ================================================================================
Shares Value ($) - -------------------------------------------------------------------------------------------------------------- Sony Corp. (Manufacturer of consumer and industrial electronic equipment) ....... 31,200 2,917,127 Taiyo Yuden Co., Ltd. (Manufactures and markets electronic components) .......... 29,000 1,818,577 The Furukawa Electric Co., Ltd. (Manufacturer of wires, cables and light metals) 108,000 2,259,244 Tokyo Broadcasting System, Inc. (Provider of television and radio programs) ..... 37,000 1,600,416 Tokyo Electron Ltd. (Manufacturer of semiconductor production equipment) ........ 11,000 1,508,429 Trend Micro Inc. (Developer of anti-virus software) ............................. 12,000 1,983,284 Yamanouchi Pharmaceutical Co., Ltd. (Manufactures and markets a wide variety of pharmaceuticals) .............................................................. 24,000 1,312,367 Yaskawa Electric Corp. (Manufacturer of electric motors) ........................ 114,000 1,364,103 ------------ 60,200,095 ------------ Korea 16.4% Dacom Corp. (Provider of domestic long-distance and Internet services) .......... 12,210 1,768,494 Housing & Commercial Bank (Bank) ................................................ 65,021 1,521,982 Korea Telecom Corp. (ADR) (Provider of telecommunications services) ............. 55,562 2,687,812 SK Telecom Co., Ltd. (Provider of mobile telecommunications services) ........... 30,100 9,853,142 Samsung Electro-Mechanics Co. (Manufacturer of precision and electronic parts) .. 22,290 1,397,342 Samsung Electronics Co. (Electronics manufacturer) .............................. 32,480 10,748,746 Shinhan Bank (GDR) (Commercial bank) ........................................... 120,000 1,130,019 ------------ 29,107,537 ------------ Malaysia 1.5% SCB Developments Berhad (Builder of residential buildings) ...................... 633,000 991,145 Unisem (M) Berhad (Manufacturer of semiconductors) .............................. 231,000 1,641,316 ------------ 2,632,461 ------------ Singapore 4.1% Chartered Semiconductor (ADR)* (Provider of wafer fabrication services to semiconductor suppliers) ...................................................... 43,600 3,924,000 DBS Group Holdings Ltd. (Provider of banking and financing services) ............ 164,000 2,106,883 Venture Manufacturing Ltd. (Provider of manufacturing services to electronics companies) .................................................................... 128,000 1,303,666 ------------ 7,334,549 ------------ Taiwan 12.0% ASE Test Ltd.* (Provider of testing services to semiconductor manufacturers) .... 63,000 1,854,563 Chinatrust Commercial Bank (Bank) ............................................... 1,041,000 904,628 Compeq Manufacturing Co., Ltd. (Manufacturer of multi-layer and double-sided printed circuit boards) ....................................................... 229,000 1,408,657
The accompanying notes are an integral part of the financial statements. 11 [LOGO] Scudder New Asia Fund, Inc. Investment Portfolio ================================================================================
Shares Value ($) - ---------------------------------------------------------------------------------------------------------------- Far Eastern Textile Ltd. (Manufacturer of natural and synthetic textile products) .... 1,184,770 1,473,009 Formosa Plastics Corp. (Manufacturer of plastics materials) .......................... 924,250 1,744,719 GigaMedia Ltd.* (Provider of broadband Internet access services and content) ......... 72,435 878,274 Hon Hai Precision Industry Co., Ltd.* (Manufacturer of electronic products) .......... 229,480 2,076,337 Pacific Electric Wire & Cable Co., Ltd.* (Manufacturer of electrical wires and cables) 1,998,000 1,599,701 Synnex Technology International Corp. (GDR) (Distributor of personal computers and peripherals) ......................................................... 295,000 1,584,215 Taiwan Cement Corp. (Manufacturer of cement) ......................................... 1,128,000 895,792 Taiwan Semiconductor Manufacturing Co.* (Manufacturer of integrated circuits) ........ 609,164 2,894,644 United Microelectronics Corp., Ltd.* (Manufacturer of integrated circuits) ........... 829,200 2,307,456 Via Technologies Inc.* (Designer, manufacturer and marketer of integrated PC chipsets) ............................................................ 72,000 1,113,100 WYSE Technology Taiwan Ltd. (Manufacturer of computer terminals) ..................... 350,000 626,526 ------------ 21,361,621 ------------ Thailand 0.0% TelecomAsia, Ltd. (Foreign registered)* (Telecommunication services) ................. 100 111 TelecomAsia, Ltd. Rights* (b) ........................................................ 300,000 -- ------------ 111 ------------ United Kingtom 4.2% HSBC Holdings PLC (International banking and financial services company) ............. 321,600 3,681,923 Standard Chartered PLC (International banking group) ................................. 300,569 3,753,322 ------------ 7,435,245 ------------ United States 0.5% AsiaInfo Holdings, Inc.* (Provider of Internet-related software products) ............ 18,900 844,594 ------------ Total Common Stocks (Cost $136,648,244) .............................................. 177,410,715 ------------ - ---------------------------------------------------------------------------------------------------------------- Total Investment Portfolio -- 100.0% (Cost $137,143,567) (a) .......................... 177,569,773 ============= - ----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 12 * Non-income producing security. (a) The cost for federal income tax purposes was $137,723,458. At June 30, 2000, net unrealized appreciation for all securities based on tax cost was $39,846,315. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $55,591,921 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $15,745,606. (b) Securities valued in good faith by the Valuation Committee of the Board of Directors at fair value amounted to $159,058 (0.10% of net assets). Their values have been estimated by the Board of Directors in the absence of readily ascertainable market values. However, because of the inherent uncertainty of valuation, those estimated values may differ significantly from the values that would have been used had a ready market for the securities existed, and the difference could be material. The cost of these securities at June 30, 2000 aggregated $495,323. These securities may also have certain restrictions as to resale. The accompanying notes are an integral part of the financial statements. 13 [LOGO] Scudder New Asia Fund, Inc. Financial Statements ================================================================================
- ----------------------------------------------------------------------------------------------------------------------------- Statement of Assets and Liabilities June 30, 2000 - ----------------------------------------------------------------------------------------------------------------------------- ASSETS Investments in securities, at value (cost $137,143,567) .................. $177,569,773 Cash ..................................................................... 78,886 Foreign currency, at value (cost $3,849,556) ............................. 3,851,791 Receivable for investments sold .......................................... 1,299,042 Dividends receivable ..................................................... 109,634 Other assets ............................................................. 1,306 ------------- Total assets ............................................................. 182,910,432 ------------- LIABILITIES Payable for investments purchased ........................................ 409,170 Deferred foreign taxes ................................................... 1,098,045 Loans payable ............................................................ 3,100,000 Interest payable ......................................................... 1,168 Accrued management fee ................................................... 174,443 Other accrued expenses and payables ...................................... 116,703 ------------- Total liabilities ........................................................ 4,899,529 ------------- Net assets, at value ..................................................... $178,010,903 ============= NET ASSETS Net assets consist of: Accumulated net investment loss (1,551,459) Net unrealized appreciation (depreciation) on: Investments (net of deferred foreign taxes of $1,098,045) ............. 39,328,161 Foreign currency related transactions ................................. 1,216 Accumulated net realized gain (loss) ..................................... 21,842,511 Paid-in capital .......................................................... 118,390,474 ------------- Net assets, at value ..................................................... $178,010,903 ------------- Net asset value per share ($178,010,903 / 8,827,983 shares of common stock issued and outstanding, $.01 par value, 50,000,000 shares authorized) . $ 20.16 =============
The accompanying notes are an integral part of the financial statements. - -------------------------------------------------------------------------------- 14 [LOGO] Scudder New Asia Fund, Inc. Financial Statements ================================================================================ - -------------------------------------------------------------------------------- Statement of Operations Six Months Ended June 30, 2000 - -------------------------------------------------------------------------------- Investment Income Income: Dividends (net of foreign taxes withheld of $93,553) ........... $ 498,360 Interest ....................................................... 99,047 ------------- Total Income ................................................... 597,407 ------------- Expenses: Management fee ................................................. 1,178,908 Services to shareholders ....................................... 22,530 Custodian and accounting fees .................................. 270,546 Auditing ....................................................... 40,945 Legal .......................................................... 3,643 Directors' fees and expenses ................................... 41,988 Reports to shareholders ........................................ 32,947 Interest expense ............................................... 11,191 Other .......................................................... 3,175 ------------- 1,605,873 ------------- Net investment income (loss) ................................... (1,008,466) ------------- Realized and unrealized gain (loss) on investment transactions Net realized gain (loss) from: Investments (net of deferred foreign taxes of $814,382) ........ 22,636,899 Foreign currency related transactions .......................... (45,811) ------------- 22,591,088 ------------- Net unrealized appreciation (depreciation) during the period on: Investments (net of deferred foreign tax benefit of $203,961) .. (50,671,496) Foreign currency related transactions .......................... (7,447) ------------- (50,678,943) ------------- Net gain (loss) on investment transactions ..................... (28,087,855) ------------- Net increase (decrease) in net assets resulting from operations $(29,096,321) ============== The accompanying notes are an integral part of the financial statements. - -------------------------------------------------------------------------------- 15 [LOGO] Scudder New Asia Fund, Inc. Financial Statements ================================================================================ Statements of Changes in Net Assets
Six Months Year Ended Ended December 31, Increase (Decrease) in Net Assets June 30, 2000 1999 - -------------------------------------------------------------------------------------------------------- Operations: Net investment income (loss) ........................................ $ (1,008,466) $ (741,288) Net realized gain (loss) on investment transactions ................. 22,591,088 30,061,510 Net unrealized appreciation (depreciation) on investment transactions during the period ................................................ (50,678,943) 79,697,321 -------------- -------------- Net increase (decrease) in net assets resulting from operations ..... (29,096,321) 109,017,543 -------------- -------------- Distributions to shareholders from net realized gains ............... (5,370,902) -- -------------- -------------- Fund share transactions: Reinvestment of distributions ....................................... 366,582 -- -------------- -------------- Increase (decrease) in net assets ................................... (34,100,641) 109,017,543 Net assets at beginning of period ................................... 212,111,544 103,094,001 -------------- -------------- Net assets at end of period (including accumulated net investment loss of $1,551,459 and $542,993, respectively) ................... $ 178,010,903 $ 212,111,544 ============== ============== Other Information Shares outstanding at beginning of period ........................... 8,804,757 8,804,757 Shares issued to shareholders in reinvestment of distributions ...... 23,226 -- -------------- -------------- Shares outstanding at end of period ................................. 8,827,983 8,804,757 ============== ==============
The accompanying notes are an integral part of the financial statements. - -------------------------------------------------------------------------------- 16 [LOGO] Scudder New Asia Fund, Inc. 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. - --------------------------------------------------------------------------------
Six Months Ended June 30, Years Ended December 31, 2000 1999 1998 1997 1996 1995 - ------------------------------------------------------------------------------------------------------------------------ Per Share Operating Performance Net asset value, beginning of period ............. $ 24.09 $ 11.71 $ 11.28 $ 15.26 $ 15.29 $ 17.44 ------- ------- ------- ------- ------- ------- Income (loss) from investment operations: Net investment income (loss) (a) ................. (.11) (.08) .03 (.05) (.04) (.01) Net realized and unrealized gain (loss) on investment transactions .......................... (3.21) 12.46 .40 (3.36) .36 (.47) ------- ------- ------- ------- ------- ------- Total from investment operations ................. (3.32) 12.38 .43 (3.41) .32 (.48) ------- ------- ------- ------- ------- ------- Less distributions from: Net investment income ............................ -- -- -- (.18) (.02) -- Net realized gains on investment transactions .... (.61) -- -- -- (.33) (1.51) In excess of net realized gains on investment transactions ..................................... -- -- -- (.39) -- (.16) ------- ------- ------- ------- ------- ------- Total distributions .............................. (.61) -- -- (.57) (.35) (1.67) ------- ------- ------- ------- ------- ------- Net asset value, end of period ................... $20.16 $24.09 $11.71 $11.28 $15.26 $15.29 ======= ======= ======= ======= ======= ======= Market value, end of period ...................... $14.69 $19.81 $ 9.31 $ 9.69 $12.50 $14.50 ======= ======= ======= ======= ======= ======= Total Return % Per share market value (%) ....................... (23.00)** 112.75 (3.87) (18.05) (11.56) (.66) Per share net asset value (%) (b) ................ (13.08)** 105.72 3.81 (21.89) 2.46 (2.96) Ratios to Average Net Assets and Supplemental Data Net assets, end of period ($ millions) ........... 178 212 103 99 133 133 Ratio of expenses (%) ............................ 1.63* 1.77 1.94 1.90 1.87 1.74 Ratio of net investment income (loss) (%) ........ (1.03)* (.52) .31 (.31) (.27) (.07) Portfolio turnover rate (%) ...................... 127* 92 99 117 89 58
(a) Based on monthly average shares outstanding during the period. (b) Total investment returns reflect changes in net asset value per share during each period and assume that 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 price. * Annualized ** Not annualized 17 [LOGO] Scudder New Asia Fund, Inc. Notes to Financial Statements ================================================================================ A. Significant Accounting Policies ------------------------------- Scudder New Asia Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a closed-end, diversified management investment company. The Fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States which require the use of management estimates. The policies described below are followed consistently by the Fund in the preparation of its financial statements. Security Valuation. Investments are stated at value determined as of the close of regular trading on the New York Stock Exchange. Securities which are traded on U.S. or foreign stock exchanges are valued at the most recent sale price reported on the exchange on which the security is traded most extensively. If no sale occurred, the security is then valued at the calculated mean between the most recent bid and asked quotations. If there are no such bid and asked quotations, the most recent bid quotation is used. Securities quoted on the Nasdaq Stock Market ("Nasdaq"), for which there have been sales, are valued at the most recent sale price reported. If there are no such sales, the value is the most recent bid quotation. Securities which are not quoted on Nasdaq but are traded in another over-the-counter market are valued at the most recent sale price, or if no sale occurred, at the calculated mean between the most recent bid and asked quotations on such market. If there are no such bid and asked quotations, the most recent bid quotation shall be used. Money market instruments purchased with an original maturity of sixty days or less are valued at amortized cost. All other securities are valued at their fair value as determined in good faith by the Valuation Committee of the Board of Directors. Foreign Currency Translations. The books and records of the Fund are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing exchange rates at period end. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the prevailing exchange rates on the respective dates of the transactions. Net realized and unrealized gains and losses on foreign currency transactions represent net gains and losses between trade and settlement dates on securities transactions, the disposition of forward foreign currency exchange contracts and foreign currencies, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed but is included with net realized and unrealized gains and losses on investment securities. Repurchase Agreements. The Fund may enter into repurchase agreements with certain banks and broker/dealers whereby the Fund, through its custodian or sub-custodian bank, receives delivery of the underlying securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the market value is equal to at least the principal amount of the repurchase price plus accrued interest. Forward Foreign Currency Exchange Contracts. A forward foreign currency exchange contract (forward contract) is a commitment to purchase or sell a foreign currency at the settlement date at a negotiated rate. During the period, the Fund utilized forward contracts as a hedge against changes in the exchange rates relating to foreign currency denominated assets. 18 [LOGO] Scudder New Asia Fund, Inc. Notes to Financial Statements ================================================================================ Forward contracts are valued at the prevailing forward exchange rate of the underlying currencies and unrealized gain/loss is recorded daily. Sales and purchases of forward contracts having the same settlement date and broker are offset and any gain (loss) is realized on the date of offset; otherwise, gain (loss) is realized on settlement date. Realized and unrealized gains and losses which represent the difference between the value of a forward contract to buy and a forward contract to sell are included in net realized and unrealized gain (loss) from foreign currency related transactions. Certain risks may arise upon entering into forward contracts from the potential inability of counterparties to meet the terms of their contracts. Additionally, when utilizing forward contracts to hedge, the Fund gives up the opportunity to profit from favorable exchange rate movements during the term of the contract. Taxes. The Fund's policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Accordingly, the Fund paid no federal income taxes and no federal income tax provision was required. Net realized and unrealized gains of the Fund derived in India and Malaysia are subject to certain non-U.S. taxes. Distribution of Income and Gains. Distributions of net investment income, if any, are made annually. Net realized gains from investment transactions, in excess of available capital loss carryforwards, would be taxable to the Fund if not distributed, and, therefore, will be distributed to shareholders at least annually. The timing and characterization of certain income and capital gains distributions are determined annually in accordance with federal tax regulations which may differ from accounting principles generally accepted in the United States. These differences relate primarily to investments in passive foreign investment companies, foreign denominated investments and certain securities sold at a loss. 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. Investment Transactions and Investment Income. Investment transactions are accounted for on the trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities may be recorded subsequent to the ex-dividend date as soon as the Fund is informed of such dividends. Realized gains and losses from investment transactions are recorded on an identified cost basis. B. Purchases and Sales of Securities --------------------------------- During the six months ended June 30, 2000, purchases and sales of investment securities (excluding short-term investments) aggregated $123,127,494 and $126,088,742, respectively. C. Related Parties --------------- Under the Investment Management Agreement (the "Agreement") with Scudder Kemper Investments, Inc. (the "Manager"), the Manager directs the investments of the Fund in accordance with its investment objectives, policies and restrictions. The Manager determines the securities, instruments and other contracts relating to 19 [LOGO] Scudder New Asia Fund, Inc. Notes to Financial Statements ================================================================================ investments to be purchased, sold or entered into by the Fund. In addition to portfolio management services, the Manager shall provide certain administrative services in accordance with the Agreement. The management fee payable under the Agreement is equal to an annual rate of 1.25% of the first $75,000,000 of average weekly net assets of the Fund, 1.15% of the next $125,000,000 and 1.10% of the excess over $200,000,000, payable monthly. For the six months ended June 30, 2000, the fee pursuant to the Agreement amounted to $1,178,908, which is equivalent to an annual effective rate of 1.2% of the Fund's average weekly net assets. Scudder Service Corporation ("SSC"), a subsidiary of the Manager, provides shareholder communications services for the Fund. For the six months ended June 30, 2000, the amount charged to the Fund by SSC aggregated $10,904, of which $5,734 is unpaid at June 30, 2000. Scudder Fund Accounting Corporation ("SFAC"), a subsidiary of the Manager, is responsible for determining the daily net asset value per share and maintaining the portfolio and general accounting records of the Fund. For the six months ended June 30, 2000, the amount charged to the Fund by SFAC aggregated $64,993, of which $22,561 is unpaid at June 30, 2000. The Fund pays each Director not affiliated with the Manager an annual retainer, plus specified amounts for attended board and committee meetings. For the six months ended June 30, 2000, Directors' fees and expenses aggregated $41,988. D. Investing in Foreign Markets ---------------------------- Investing in foreign markets may involve special risks and considerations not typically associated with investing in the United States. These risks include revaluation of currencies and future adverse political and economic developments. Moreover, securities issued in these markets may be less liquid, subject to government ownership controls, delayed settlements, and their prices more volatile than those of securities of comparable U.S. companies. Foreign investment in the securities markets of several foreign countries is restricted or controlled in varying degrees. These restrictions may limit investment in certain foreign countries. In addition, the repatriation of both investment income and capital from some foreign countries may be subject to restrictions. E. Line of Credit -------------- The Fund and several Scudder Funds (the "Participants") share in a $1 billion revolving credit facility with Chase Manhattan Bank for temporary or emergency purposes that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated pro rata based upon net assets among each of the Participants. Interest is calculated based on the market rates at the time of the borrowing. The Fund may borrow up to a maximum of 5 percent of its net assets under the agreement. F. Borrowings ---------- The weighted average outstanding daily balance of all loans (based on the number of days the loans were outstanding) was $1,977,586 with an average interest rate of 6.70%. Interest for the six months ended June 30, 2000 was $11,191. 20 [LOGO] Scudder New Asia Fund, Inc. Report of Independent Accountants ================================================================================ To the Board of Directors and Shareholders of Scudder New Asia Fund, Inc.: In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Scudder New Asia Fund, Inc. (the "Fund") at June 30, 2000, the results of its operations, the changes in its net assets, and the financial highlights for the periods indicated therein, in conformity with accounting principles generally accepted in the United States. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2000 by correspondence with the custodian and brokers, provide a reasonable basis for the opinion expressed above. Boston, Massachusetts PricewaterhouseCoopers LLP August 17, 2000 21 [LOGO] Scudder New Asia Fund, Inc. Dividend Reinvestment and Cash Purchase Plan ================================================================================ The Plan The fund's Dividend Reinvestment and Cash Purchase Plan (the "Plan") offers you an automatic way to reinvest your dividends and capital gains distributions in shares of the fund. The Plan also provides for cash investments in fund shares of $100 to $3,000 semiannually through EquiServe, the Plan Agent. Note that the fund's share price for purposes of the Plan is calculated net of due-bills, if applicable. Automatic Participation Each stockholder of record is automatically a participant in the Plan unless the stockholder 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. Stockholders who do not participate in the Plan will receive all distributions in cash paid by check in dollars mailed directly to the stockholder by EquiServe, 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 stockholder 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 stockholder 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. Voluntary Cash Purchases Participants in the Plan have the option of making additional cash payments to the Plan Agent, semiannually, in any amount from $100 to $3,000, for investment in the fund's shares. The Plan Agent will use all such monies received from participants to purchase fund shares in the open market on or about February 15 and August 15. Any voluntary cash payments received more than 30 days prior to these dates will be returned by the Plan Agent, and interest will not be paid on any uninvested cash payments. To avoid unnecessary cash accumulations, and also to allow ample time for receipt and processing by the Plan Agent, it is suggested that participants send their 22 [LOGO] Scudder New Asia Fund, Inc. Dividend Reinvestment and Cash Purchase Plan ================================================================================ voluntary cash payments to be received by the Plan Agent approximately ten days before February 15, or August 15, as the case may be. A participant may withdraw a voluntary cash payment by written notice, if the notice is received by the Plan Agent notless than 48 hours before such payment is to be invested. 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 stockholder 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. Costs for Cash Purchases With respect to purchases of fund shares from voluntary cash payments, the Plan Agent will charge $0.75 for each such purchase for a participant. Each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent's open market purchases of fund shares in connection with voluntary cash payments made by the participant. Brokerage charges for purchasing small amounts of stock for individual accounts through the Plan are expected to be less than the usual brokerage charges for such transactions, because the Plan Agent will be purchasing stock for all participants in blocks and prorating the lower commission thus attainable. 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 New Asia fund Dividend Reinvestment and Cash Purchase Plan, c/o EquiServe, P.O. Box 8200, Boston, MA 02266-8200, (800) 426-5523. 23 [LOGO] Scudder New Asia Fund, Inc. Directors and Officers ================================================================================ DANIEL PIERCE* ELIZABETH J. ALLAN* Chairman of the Board and Director Vice President NICHOLAS BRATT* BRUCE H. GOLDFARB* President Vice President and Assistant Secretary SHERYLE J. BOLTON THERESA GUSMAN* Director Vice President ROBERT J. CALLANDER JUDITH A. HANNAWAY* Director Vice President KENNETH C. FROEWISS ANN M. McCREARY* Director Vice President WILLIAM H. LUERS TIEN-YU SIEH* Director Vice President HUGH T. PATRICK JOHN R. HEBBLE* Director Treasurer KATHRYN L. QUIRK* JOHN MILLETTE* Director, Vice President and Assistant Secretary Vice President and Secretary KESOP YUN BRENDA LYONS* Director Assistant Treasurer WILLIAM H. GLEYSTEEN, JR. CAROLINE PEARSON* Honorary Director Assistant Secretary JAMES W. MORLEY Honorary Director * Scudder Kemper Investments, Inc. WILSON NOLEN Honorary Director ROBERT G. STONE, JR. Honorary Director
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