-----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, E2bk4iIzjcz3UmtVfpOTAiGsG1cAzrHWtCzchBK1zLy7+nm0VbYJiFUEykeErL+X 42dChF8ufwR3iPHKd6wFOw== 0000088053-96-000033.txt : 19960809 0000088053-96-000033.hdr.sgml : 19960809 ACCESSION NUMBER: 0000088053-96-000033 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19960808 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCUDDER INTERNATIONAL FUND INC CENTRAL INDEX KEY: 0000088053 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 132827803 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-14400 FILM NUMBER: 96605971 BUSINESS ADDRESS: STREET 1: 345 PARK AVE CITY: NEW YORK STATE: NY ZIP: 10154 BUSINESS PHONE: 2123266200 FORMER COMPANY: FORMER CONFORMED NAME: SCUDDER INTERNATIONAL INVESTMENTS LTD DATE OF NAME CHANGE: 19761203 497 1 FORM OF PROSPECTUS--SCUDDER INTERNATIONAL FUND Scudder International Fund - ------------------------------------- August 1, 1996 Scudder Growth and Income Fund - ------------------------------------- May 1, 1996 Scudder Short Term Bond Fund - ------------------------------------- May 1, 1996 Scudder Cash Investment Trust - ------------------------------------- November 1, 1995 Retirement Plan Prospectus Four pure no-load(TM) mutual funds offering a broad range of investment objectives that can be used for your Retirement Plan. This combined prospectus sets forth concisely the information a prospective retirement plan investor should know before investing in the following funds: Scudder International Fund, Scudder Growth and Income Fund, Scudder Short Term Bond Fund and Scudder Cash Investment Trust. Please retain it for future reference. Shares of Scudder Cash Investment Trust are not insured or guaranteed by the U.S. Government. Scudder Cash Investment Trust seeks to maintain a constant net asset value of $1.00 per share but there can be no assurance that the stable net asset value will be maintained. If you require more detailed information, Statements of Additional Information dated August 1, 1996 for Scudder International Fund, May 1, 1996 for Scudder Growth and Income Fund and Scudder Short Term Bond Fund and November 1, 1995 for Scudder Cash Investment Trust, as amended from time to time, may be obtained without charge by writing Scudder Investor Services, Inc., Two International Place, Boston, MA 02110-4103 or calling 1-800-225-2470. The Statements, which are incorporated by reference into this prospectus, have been filed with the Securities and Exchange Commission. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. Contents--see page 7. Expense information How to compare a Scudder pure no-load(TM) fund This information is designed to help you understand the various costs and expenses of investing in Scudder funds. By reviewing this table and those in other mutual funds' prospectuses, you can compare each Fund's fees and expenses with those of other funds. With Scudder's pure no-load(TM) funds, you pay no commissions to purchase or redeem shares, or to exchange from one fund to another. As a result, all of your investment goes to work for you. 1) Shareholder transaction expenses: Expenses charged directly to your individual account in a Fund for various transactions.
Scudder Scudder Scudder Scudder Cash International Growth and Short Term Investment Fund Income Fund Bond Fund Trust ---- ----------- --------- ----- Sales commissions to purchase shares NONE NONE NONE NONE (sales load) Commissions to reinvest dividends NONE NONE NONE NONE Distribution fees* NONE NONE NONE NONE Fees to exchange shares NONE NONE NONE NONE 2) Annual Fund operating expenses: Expenses paid by a Fund before it distributes its net investment income, expressed as a percentage of the Fund's average daily net assets for the fiscal year ended March 31, 1996 for Scudder International Fund, December 31, 1995 for Scudder Growth and Income Fund and Scudder Short Term Bond Fund, and June 30, 1995 for Scudder Cash Investment Trust. Investment management fee 0.82% 0.51%** 0.49% 0.41% 12b-1 fees NONE NONE NONE NONE Other expenses 0.32% 0.28% 0.26% 0.37% ----- ----- ----- ----- Total Fund operating expenses 1.14% 0.79%** 0.75% 0.78% ===== ===== ===== ===== Example Based on the level of total Fund operating expenses listed above, the total expenses relating to a $1,000 investment, assuming a 5% annual return and redemption at the end of each period, are listed below. Investors do not pay these expenses directly; they are paid by each Fund before it distributes its net investment income to shareholders. (As noted above, the Fund has no redemption fees of any kind.) One year $ 12 $ 8 $ 8 $ 8 Three years 36 25 24 25 Five years 63 44 42 43 Ten years 139 98 93 97
See "Fund organization--Investment adviser" for further information about the investment management fee. This example assumes reinvestment of all dividends and distributions and that the percentage amounts listed under "Annual Fund operating expenses" remain the same each year. This example should not be considered a representation of past or future expenses or return. Actual Fund expenses and return vary from year to year and may be higher or lower than those shown. * Please refer to "Transaction information--Tax information." **These fees reflect the fees which would have been payable for the fiscal year ended December 31, 1995 under the Investment Management Agreement dated August 8, 1995. 2 Financial highlights Scudder International Fund The following table includes selected data for a share outstanding throughout each period (a) and other performance information derived from the audited financial statements. If you would like more detailed information concerning the Fund's performance, a complete portfolio listing and audited financial statements are available in the Fund's Annual Report dated March 31, 1996 and may be obtained without charge by writing or calling Scudder Investor Services, Inc.
YEARS ENDED MARCH 31, ------------------------------------------------------------------------------ 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 ------------------------------------------------------------------------------ Net asset value, beginning of period ........... $39.72 $42.96 $35.69 $34.36 $34.69 $37.00 $34.79 $33.43 $44.05 $36.93 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income ....................... .38 .21 .31 .38 .44 .80 .49 .40 .45 .47 Net realized and unrealized gain (loss) on investment transactions ................. 7.19 (1.03) 7.74 2.64 (.37) (.39) 5.30 4.15 (.86) 13.07 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total from investment operations .................... 7.57 (.82) 8.05 3.02 .07 .41 5.79 4.55 (.41) 13.54 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Less distributions: From net investment income .... (.40) -- (.63) (.83) -- (.74) (.43) (.13) (.82) (.49) In excess of net investment income ........... -- -- (.06) -- -- -- -- -- -- -- From net realized gains on investment transactions .. (1.18) (2.42) (.09) (.86) (.40) (1.98) (3.15) (3.06) (9.39) (5.93) ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total distributions ............ (1.58) (2.42) (.78) (1.69) (.40) (2.72) (3.58) (3.19) (10.21) (6.42) ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Net asset value, end of period ................. $45.71 $39.72 $42.96 $35.69 $34.36 $34.69 $37.00 $34.79 $33.43 $44.05 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== TOTAL RETURN (%) ............... 19.25 (2.02) 22.69 9.12 .18 1.46 17.08 14.34 (.47) 40.18 RATIOS AND SUPPLEMENTAL DATA Net assets, end of period ($ millions) .................. 2,515 2,192 2,198 1,180 933 929 783 550 559 791 Ratio of operating expenses to average net assets (%) ................ 1.14 1.19 1.21 1.26 1.30 1.24 1.18 1.22 1.21 1.09 Ratio of net investment income to average net assets (%) ................ .86 .48 .75 1.13 1.25 2.22 1.33 1.20 1.16 1.19 Portfolio turnover rate (%) .... 45.2 46.3 39.9 29.2 50.4 70.1 49.4 48.3 54.8 66.5 - ---------- (a) Based on monthly average shares outstanding during the period.
3 Financial highlights Scudder Growth and Income Fund The following table includes selected data for a share outstanding throughout each period and other performance information derived from the audited financial statements. If you would like more detailed information concerning the Fund's performance, a complete portfolio listing and audited financial statements are available in the Fund's Annual Report dated December 31, 1995 and may be obtained without charge by writing or calling Scudder Investor Services, Inc.
YEARS ENDED DECEMBER 31, ------------------------------------------------------------------------------ 1995 1994 1993(b) 1992 1991 1990 1989 1988 1987 1986 ------------------------------------------------------------------------------ Net asset value, beginning of period .............................. $16.26 $17.24 $16.20 $15.76 $12.77 $14.14 $13.18 $12.31 $15.02 $15.35 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income .................. .55 .49 .49 .57 .57 .65 .67 .60 .68 .67 Net realized and unrealized gain (loss) on investment transactions .............. 4.46 (.05) 2.01 .90 2.97 (1.01) 2.75 .86 (.07) 1.96 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total from investment operations ............................. 5.01 .44 2.50 1.47 3.54 (.36) 3.42 1.46 .61 2.63 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Less distributions from: Net investment income .................. (.56) (.51) (.45) (.53) (.55) (.67) (.69) (.59) (.68) (.68) Net realized gains on investment transactions .............. (.48) (.91) (1.01) (.50) -- (.34) (1.77) -- (2.64) (2.28) ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total distributions ...................... (1.04) (1.42) (1.46) (1.03) (.55) (1.01) (2.46) (.59) (3.32) (2.96) ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Net asset value, end of period ......... $20.23 $16.26 $17.24 $16.20 $15.76 $12.77 $14.14 $13.18 $12.31 $15.02 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== TOTAL RETURN (%).......................... 31.18 2.60 15.59 9.57 28.16 (2.33) 26.36 12.01 3.50 18.27 RATIOS AND SUPPLEMENTAL DATA Net assets, end of period ($ millions) ........................... 3,061 1,992 1,624 1,166 723 491 490 402 392 385 Ratio of operating expenses to average net assets (%) (a) ............. .80 .86 .86 .94 .97 .95 .87 .92 .89 .83 Ratio of net investment income to average net assets (%) .............. 3.10 2.98 2.93 3.60 4.03 5.03 4.47 4.63 4.24 4.19 Portfolio turnover rate (%) .............. 26.9 42.3 35.5 27.5 44.7 64.7 76.6 47.6 59.5 45.3 (a) The Adviser did not impose a portion of its management fee amounting to $.02 per share for the year ended December 31, 1992. If all expenses, including the management fee not imposed, had been incurred by the Fund, the annualized ratio of expenses to average net assets for such year would have been 1.08% and the total return would have been lower. This ratio includes costs associated with the acquisition of certain assets of Niagara Share Corporation on July 27, 1992, exclusive of these charges the ratio would have been .92%. (b) Effective January 1, 1993, the Fund discontinued using equalization accounting.
4 Financial highlights Scudder Short Term Bond Fund The following table includes selected data for a share outstanding throughout each period and other performance information derived from the audited financial statements. If you would like more detailed information concerning the Fund's performance, a complete portfolio listing and audited financial statements are available in the Fund's Annual Report dated December 31, 1995 and may be obtained without charge by writing or calling Scudder Investor Services, Inc.
YEARS ENDED DECEMBER 31, ----------------------------------------------------------------------------------- 1995 1994 1993(c) 1992 1991 1990 1989 1988 1987 1986 ----------------------------------------------------------------------------------- Net asset value, beginning of period................................. $10.91 $12.01 $11.93 $12.25 $11.72 $11.71 $11.19 $11.23 $11.92 $11.35 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income (a).............. .71 .81 .87 .97 1.08 1.09 .83 .73 .74 .81 Net realized and unrealized gains (losses)....................... .44 (1.15) .08 (.33) .53 .01 .61 (.04) (.58) .78 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total from investment transactions......................... 1.15 (.34) .95 .64 1.61 1.10 1.44 .69 .16 1.59 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Less distributions: From net investment income........... (.43) (.64) (.80) (.96) (1.08) (1.09) (.83) (.73) (.74) (.81) From net realized gains.............. -- -- (.03) -- -- -- (.09) -- (.11) (.21) In excess of gains................... -- -- (.04) -- -- -- -- -- -- -- From tax return of capital........... (.28) (.12) -- -- -- -- -- -- -- -- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total distributions...................... (.71) (.76) (.87) (.96) (1.08) (1.09) (.92) (.73) (.85) (1.02) ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Net asset value, end of period........... $11.35 $10.91 $12.01 $11.93 $12.25 $11.72 $11.71 $11.19 $11.23 $11.92 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== TOTAL RETURN (%)......................... 10.74 (2.87) 8.18 5.43 14.38 9.88 13.20 6.10 1.40 14.70 RATIOS AND SUPPLEMENTAL DATA Net assets, end of period ($ millions)......................... 1,823 2,136 3,190 2,862 2,247 340 72 10 10 8 Ratio of operating expenses net, to average daily net assets (%)......... .75 .73 .68 .75 .44 .16 .36 1.50 1.45 1.45 Ratio of net investment income net, to average daily net assets (%)...... 6.37 6.93 7.21 8.01 8.96 9.36 7.97 6.48 6.34 6.89 Portfolio turnover rate (%).............. 101.1 65.3 66.1 83.7(b) 41.0 52.9 40.0 23.5 28.7 15.6 (a) Portion of expenses reimbursed by the Adviser........................ $ -- $ -- $ -- $ -- $ -- $ .02 $ .10 $ .04 $ .04 $ -- Management fee not imposed by the Adviser (Note C).............. $ -- $ -- $ -- $ -- $ .06 $ .07 $ .05 $ -- $ -- $ .01 Ratio of operating expenses, including expenses reimbursed, management fee and other expenses not imposed, to average daily net assets aggregated .78%, 1% and 1.19% for the years ended December 31, 1992, 1991 and 1990, respectively. (b) The high turnover rate reflects an increase in principal prepayments on mortgage securities in the Fund. (c) Per share amounts have been calculated using weighted average shares outstanding. On July 3, 1989, the Fund adopted its present name and objective. Prior to that date, the Fund was known as the General 1994 Portfolio of Scudder Target Fund and its objectives were current income, capital preservation, and possible capital appreciation. Financial information prior to July 3, 1989 should not be considered representative of the present Fund.
5 Financial highlights Scudder Cash Investment Trust The following table includes selected data for a share outstanding throughout each year and other performance information derived from the audited financial statements. If you would like more detailed information concerning the Fund's performance, a complete portfolio listing and audited financial statements are available in the Fund's Annual Report dated June 30, 1995 and may be obtained without charge by writing or calling Scudder Investor Services, Inc.
YEARS ENDED JUNE 30, ------------------------------------------------------------------------------ 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 ------------------------------------------------------------------------------ Net asset value, beginning of period....... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Net investment income....... .048 .027 .027 .047 .069 .080 .082 .064 .056 .071 Distributions from net investment income and net realized capital gains............. (.048) (.027) (.027) (.047) (.069) (.080) (.082) (.064) (.056) (.071) ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Net asset value, end of period............. $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== TOTAL RETURN (%)............ 4.90 2.77 2.75 4.76 7.13 8.23 8.49 6.59 5.71 7.25 RATIOS AND SUPPLEMENTAL DATA Net assets, end of year ($ millions)...... 1,520 1,430 1,119 1,361 1,736 1,644 1,563 1,370 1,144 1,104 Ratio of operating expenses to average daily net assets (%)...... .78 .82 .78 .70 .66 .67 .66 .68 .68 .65 Ratio of net investment income to average daily net assets (%)...... 4.84 2.78 2.72 4.58 6.91 7.93 8.21 6.44 5.55 7.01
6 A message from Scudder's chairman We're pleased that you are considering Scudder for your retirement plan. There are many important reasons to invest in your future: to provide a measure of freedom and security after you've stopped working, to maintain your lifestyle, and to complement Social Security and other retirement benefits. When you invest through an IRA, you reap the additional benefit of tax-deferred earnings growth. Some IRA investors may also deduct all or part of their yearly contributions from current taxes. And in keeping with Scudder's pure no-load(TM) philosophy, Scudder IRAs offer you the added advantage of charging no annual custodial fee. This prospectus includes four Scudder funds that may be appropriate for investors with different retirement planning needs: o Scudder International Fund o Scudder Growth and Income Fund o Scudder Short Term Bond Fund o Scudder Cash Investment Trust Scudder's family of 39 pure no-load(TM) mutual funds is designed to provide investors with a complete investment program. If you have any questions about our funds or retirement planning with Scudder, we encourage you to call Scudder Investor Relations at 1-800-225-2470. We look forward to welcoming you as a retirement plan investor at Scudder. /s/Daniel Pierce Fund objectives o Scudder International Fund seeks long-term growth of capital primarily from foreign equity securities o Scudder Growth and Income Fund seeks long-term growth of capital, current income and growth of income o Scudder Short Term Bond Fund seeks a high level of income consistent with a high degree of principal stability o Scudder Cash Investment Trust seeks stability of capital while maintaining the liquidity of capital and providing current income from money market securities Contents Introduction 8 Scudder International Fund 8 Scudder Growth and Income Fund 9 Scudder Short Term Bond Fund 9 Scudder Cash Investment Trust 11 Special risk considerations 11 Additional information about policies and investments 12 Fund distribution and performance information 16 Fund organization 17 Transaction information 19 Contributions, exchanges and distributions 20 Shareholder benefits 22 Directors and Officers 25 Trustees and Officers 26 Investment products and services 27 How to contact Scudder Back cover 7 Introduction Scudder International Fund, Scudder Growth and Income Fund, Scudder Short Term Bond Fund and Scudder Cash Investment Trust are mutual funds advised by Scudder, Stevens & Clark, Inc. (the "Adviser"). The four Funds' prospectuses are presented together so you can understand their important differences and decide which Fund or combination of Funds is most suitable for your retirement needs. Each of these Funds may be appropriate for IRAs, 401(k)s and other retirement plans. With an IRA, you can put aside up to $2,000 of earned income each year until the year you turn age 70 1/2. Whether you have many years until you retire or just a few, IRAs offer an immediate advantage: tax-deferred earnings that compound free of current income taxes, nurturing the growth of your retirement savings. Investors will also benefit from the cost-savings and professional management of a no-load mutual fund. Each Fund offers all the benefits of the Scudder Family of Funds. Scudder, Stevens & Clark, Inc. has been researching and managing investments since 1919 and offered America's first no-load fund in 1928. It manages over $100 billion in assets, including a diverse family of pure no-load(TM) funds and provides a wide range of services to help investors meet their investment needs. Please refer to "Investment products and services" for additional information. Except as otherwise indicated, each Fund's investment objectives and policies are not fundamental and may be changed without a vote of shareholders. Shareholders will receive written notice of any changes in a Fund's objectives. If there is a change in investment objectives, shareholders should consider whether the Fund remains an appropriate investment in light of their then current financial position and needs. There can be no assurance that the Funds' objectives will be met. Scudder International Fund Investment objective and policies Scudder International Fund seeks long-term growth of capital primarily through a diversified portfolio of marketable foreign equity securities. These securities are selected primarily to permit the Fund to participate in non-United States companies and economies with prospects for growth. The Fund invests in companies, wherever organized, which do business primarily outside the United States. The Fund intends to diversify investments among several countries and to have represented in the portfolio, in substantial proportions, business activities in not less than three different countries. The Fund does not intend to concentrate investments in any particular industry. Investments The Fund generally invests in equity securities of established companies, listed on foreign exchanges, which the Adviser believes have favorable characteristics. When the Adviser believes that it is appropriate to do so in order to achieve the Fund's investment objective of long-term capital growth, the Fund may invest up to 20% of its total assets in debt securities. Such debt securities include debt securities of foreign governments, supranational organizations and private issuers, including bonds denominated in the European Currency Unit (ECU). Portfolio debt investments will be selected on the basis of, among other things, yield, credit quality, and the fundamental outlooks for currency and interest rate trends in different parts of the globe, taking into account the ability to hedge a degree of currency or local bond price risk. The Fund may purchase "investment-grade" bonds, which are those rated Aaa, Aa, A or Baa by Moody's Investors Service, Inc. ("Moody's") or AAA, AA, A or BBB by Standard & Poor's ("S&P") or, if unrated, judged by the Adviser to be of equivalent quality. The Fund may also invest up to 5% of its total assets in debt securities which are rated below investment-grade (see "Additional information about policies and investments--Risk factors"). 8 In addition, the Fund may enter into repurchase agreements, and may engage in strategic transactions, which may include derivatives. When the Adviser determines that exceptional conditions exist abroad, the Fund may, for temporary defensive purposes, invest all or a portion of its assets in Canadian or U.S. Government obligations or currencies, or securities of companies incorporated in and having their principal activities in Canada or the U.S. Scudder Growth and Income Fund Investment objective and policies Scudder Growth and Income Fund seeks long-term growth of capital, current income and growth of income. The Fund invests primarily in common stocks, preferred stocks and securities convertible into common stocks of companies which offer the prospect for growth of earnings while paying current dividends. Over time, continued growth of earnings tends to lead to higher dividends and enhancement of capital value. The Fund allocates its investments among different industries and companies and adjusts its portfolio securities for investment considerations and not for trading purposes. Investments The Fund attempts to achieve its investment objective by investing primarily in dividend-paying common stocks, preferred stocks and securities convertible into common stocks. The Fund may also purchase such securities which do not pay current dividends but which offer prospects for growth of capital and future income. Convertible securities (which may be current coupon or zero coupon securities) are bonds, notes, debentures, preferred stocks and other securities which may be converted or exchanged at a stated or determinable exchange ratio into underlying shares of common stock. The Fund may also invest in nonconvertible preferred stocks consistent with the Fund's objective. From time to time, for temporary defensive purposes, when the Adviser feels such a position is advisable in light of economic or market conditions, the Fund may invest a portion of its assets in cash and cash equivalents. The Fund may invest in foreign securities and in repurchase agreements. It may also loan securities and may engage in strategic transactions. More information about investment techniques is provided under "Additional information about policies and investments." The Fund's share price fluctuates with changes in interest rates and market conditions. These fluctuations may cause the value of shares to be higher or lower than when purchased. Scudder Short Term Bond Fund Investment objective and policies Scudder Short Term Bond Fund is designed for investors seeking a higher and more stable level of income than normally provided by money market investments and more price stability than investments in intermediate- and long-term bonds. The Fund's objective is to provide a high level of income consistent with a high degree of principal stability by investing primarily in high quality, short-term bonds. The dollar-weighted average effective maturity of the Fund's portfolio may not exceed three years. Within this limitation, the Fund may purchase individual securities with remaining stated maturities greater than three years. Investments The Fund invests at least 65% of its net assets in a managed portfolio of bonds consisting of U.S. Government securities, including bonds, notes and bills issued by the U.S. Treasury, and securities issued by agencies and instrumentalities of the U.S. Government; corporate debt securities, such as bonds, notes and debentures; mortgage-backed securities; and other asset-backed securities. Other eligible investments for the Fund are money market instruments which are comprised of commercial paper, bank obligations (i.e., certificates of deposit and bankers' acceptances) and repurchase agreements; privately placed obligations (including restricted securities); and foreign securities, including non-U.S. dollar-denominated securities and U.S. dollar-denominated debt securities issued by foreign issuers and foreign branches of U.S. banks. 9 Scudder Short Term Bond Fund (cont'd) In addition, the Fund may purchase indexed securities, securities on a when-issued or forward delivery basis and may engage in dollar roll transactions and strategic transactions. See "Additional information about policies and investments" for more information. To meet its objective, the Adviser actively manages the Fund's portfolio. Investment decisions are based on general economic and financial trends, such as domestic and international economic developments, the outlook for the securities markets, the level of interest rates and inflation, the supply and demand of debt securities and other factors. The composition of the Fund's portfolio is also determined by individual security analysis. The Adviser's team of experienced credit analysts actively monitors the credit quality of the investments of the Fund. The net asset value of the Fund is expected to fluctuate with changes in interest rates and bond market conditions, although this fluctuation should be more moderate than that of a fund with a longer average maturity. The Adviser, however, will attempt to reduce principal fluctuation through, among other things, diversification, credit analysis and security selection and adjustment of the Fund's average portfolio maturity. The Fund's share price tends to rise as interest rates decline and decline as interest rates rise. In periods of rising interest rates and falling bond prices, the Adviser may shorten the Fund's average maturity to minimize the effect of declining bond values on the Fund's net asset value. Conversely, during times of falling rates and rising prices, a longer average maturity of up to three years may be sought. When the Adviser believes economic or other conditions warrant, for temporary defensive purposes the Fund may invest more than 35% of its assets in money market instruments. The Fund's securities generally offer less current yield than securities of lower quality (rated below BBB/Baa) or longer maturity, but lower-quality securities generally have less liquidity, and both tend to have greater credit and market risk and, consequently, more price volatility. It is against the Fund's policy to make changes in the portfolio for short-term trading purposes. However, the Fund may take advantage of opportunities provided by temporary dislocations in the market to maintain principal stability or enhance income. High quality securities The Fund emphasizes high quality investments. At least 65% of the Fund's net assets will be invested in (1) obligations of the U.S. Government, its agencies or instrumentalities, and (2) debt securities rated, at the time of purchase, in one of the two highest ratings categories of S&P (AAA or AA) or Moody's (Aaa or Aa) or, if not rated, judged to be of comparable quality by the Adviser. In addition, the Fund will not invest in any debt security rated at the time of purchase lower than BBB by S&P or Baa by Moody's, or of equivalent quality as determined by the Adviser. Should the rating of a portfolio security be downgraded, the Adviser will determine whether it is in the best interest of the Fund to retain or dispose of the security. The U.S. Government securities in which the Fund may invest include (1) securities issued and backed by the full faith and credit of the U.S. Government, such as U.S. Treasury bills, notes and bonds; (2) securities, including mortgage-backed securities, issued by an agency or instrumentality of the U.S. Government, including those backed by the full faith and credit of the U.S. Government, such as securities of the Export-Import Bank of the United States, the General Services Administration and the Government National Mortgage Association, and those issued by agencies and instrumentalities, such as Federal Home Loan Banks and the Federal Home Loan Mortgage Corporation which, while neither direct obligations of nor guaranteed by the U.S. Government, are backed by the credit of the issuer itself and may be supported as well by the issuer's right to borrow from the U.S. Treasury; and (3) securities of the U.S. Government, its agencies or instrumentalities on a when-issued or forward delivery basis. In addition, the Fund may invest in repurchase agreements with respect to U.S. Government securities. 10 Scudder Cash Investment Trust Investment objectives and policies The investment objectives of Scudder Cash Investment Trust are to maintain the stability of capital and, consistent therewith, to maintain the liquidity of capital and to provide current income. The Fund seeks to maintain a constant net asset value of $1.00 per share. Investments The Fund purchases U.S. dollar-denominated securities with remaining maturities of 397 calendar days or less, except in the case of U.S. Government securities which may have remaining maturities of 762 calendar days or less. The dollar-weighted average maturity of the Fund's portfolio will vary with money market conditions, but is always 90 days or less. All securities in the Fund's portfolio must meet credit quality standards pursuant to procedures established by the Trustees. Generally, the Fund may purchase only securities which are rated, or issued by a company with comparable securities rated, within the two highest quality rating categories of one or more of the following rating agencies: Moody's, S&P and Fitch Investors Service, Inc. ("Fitch"). If a security is unrated, the Fund may purchase the security if, in the opinion of the Adviser, the credit quality of the security is deemed equivalent to the rated securities mentioned above. The Fund may invest in short-term securities consisting of: obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities; obligations of supranational organizations such as the International Bank for Reconstruction and Development (the World Bank); obligations of domestic banks and foreign branches of domestic banks, including bankers' acceptances, certificates of deposit, deposit notes and time deposits; and obligations of savings and loan institutions. The Fund may also invest in: instruments whose credit has been enhanced by banks (letters of credit), insurance companies (surety bonds) or other corporate entities (corporate guarantees); corporate obligations, including commercial paper, notes, bonds, loans and loan participations; securities with variable or floating interest rates; asset-backed securities, including certificates, participations and notes; and municipal securities, including notes, bonds and participation interests, either taxable or tax free. In addition, the Fund may invest in repurchase agreements and securities with put features. Each of the above referenced eligible investments and investment practices have certain risks associated with them. For a more complete description, please refer to the Fund's Statement of Additional Information. Special risk considerations Global and international investing involves economic and political considerations not typically found in U.S. markets. These considerations include changes in exchange rates and exchange rate controls (which may include suspension of the ability to transfer currency from a given country), costs incurred in conversions between currencies, nonnegotiable brokerage commissions, less publicly available information, different accounting standards, lower trading volume and greater market volatility, the difficulty of enforcing obligations in other countries, less securities regulation, different tax provisions (including withholding on dividends paid to the Fund), war, expropriation, political and social instability, and diplomatic developments. Further, the settlement period of securities transactions in foreign markets may be longer than in domestic markets. These considerations generally are more of a concern in developing countries. For example, the possibility of revolution and the dependence on foreign economic assistance may be greater in these countries than in developed countries. The Adviser seeks to mitigate the risks associated with these considerations through diversification and active professional management. Purchases of foreign securities are usually made in foreign currencies and, as a result, the Fund may incur currency conversion costs and may be affected favorably or unfavorably by changes in the value of foreign currencies against the U.S. 11 Special risk considerations (cont'd) dollar. Further, it may be more difficult for the Fund's agents to keep currently informed about corporate actions which may affect the prices of portfolio securities. Communications between the U.S. and foreign countries may be less reliable than within the U.S., thus increasing the risk of delayed settlements of portfolio transactions or loss of certificates for portfolio securities. The Fund's ability and decisions to purchase and sell portfolio securities may be affected by laws or regulations relating to the convertibility and repatriation of assets. Some countries restrict the extent to which foreigners may invest in their securities markets. Scudder International Fund is designed for long-term investors who can accept international investment risk. As with any long-term investment, the value of shares when sold may be higher or lower than when purchased. Because of the Fund's international investment policies and the investment considerations discussed above, investment in shares of the Fund should not be considered a complete investment program. While both Scudder Short Term Bond Fund and Scudder Growth and Income Fund each generally emphasize investments in U.S. Government securities and companies domiciled in the U.S., each may invest in foreign securities that meet the same criteria as each Fund's domestic holdings when the anticipated performance of foreign securities is believed by the Adviser to offer more potential than domestic alternatives in keeping with the investment objective of each Fund. Foreign securities may be denominated either in U.S. dollars or foreign currencies. Scudder International Fund, Scudder Growth and Income Fund and Scudder Short Term Bond Fund may enter into forward foreign currency exchange contracts in connection with the purchase and sale of securities denominated in a foreign currency. Additional information about policies and investments Investment restrictions Each Fund has adopted certain fundamental policies which may not be changed without a vote of shareholders and which are designed to reduce the Funds' investment risk. Each Fund may not borrow money except as a temporary measure for extraordinary or emergency purposes and, in the case of Scudder Short Term Bond Fund, except in connection with reverse repurchase agreements. Each Fund may not make loans except through the lending of portfolio securities, the purchase of debt securities or through repurchase agreements. In addition, as matters of nonfundamental policy, Scudder Growth and Income Fund, Scudder International Fund and Scudder Short Term Bond Fund each may not invest more than 10% of its total assets, in the aggregate, in securities which are not readily marketable, restricted securities and repurchase agreements maturing in more than seven days. Scudder Cash Investment Trust, as a matter of nonfundamental policy, may not invest more than 10% of its net assets, in the aggregate, in securities which are not readily marketable, restricted securities and repurchase agreements maturing in more than seven days. Scudder Cash Investment Trust, with certain limited exceptions, may not invest more than 5% of its total assets in the securities of a single issuer, or subject to puts from any one issuer, except U.S. Government securities, and may not invest more than 10% of its total assets in securities subject to unconditional puts by a single issuer. A complete description of these and other policies and restrictions is contained under "Investment Restrictions" in each Fund's Statement of Additional Information. The high quality securities in which Scudder Cash Investment Trust invests are divided into "first tier" and "second tier" securities. First tier securities are those securities generally rated in the highest category by at least two rating agencies (or one, if only one rating agency has rated the security). Securities which are generally rated in the two highest categories by at least two rating agencies (or one, if only one rating agency has rated the security) and which do not qualify as first tier securities are second tier securities. The Adviser may determine, pursuant to procedures approved by the Trustees, that an unrated security is equivalent to a first tier or second tier security. The 12 Fund will not invest more than 5% of its total assets in second tier securities or more than 1% of its total assets in second tier securities of a single issuer. Securities lending Scudder Growth and Income Fund may lend portfolio securities to registered broker/dealers as a means of increasing its income. These loans may not exceed 33 1/3% of the Fund's total assets taken at market value. Loans of portfolio securities will be secured continuously by collateral consisting of U.S. Government securities or fixed income obligations that are maintained at all times in an amount at least equal to the current market value of the loaned securities. The Fund will earn any interest or dividends paid on the loaned securities and may share with the borrower some of the income received on the collateral for the loan or will be paid a premium for the loan. Convertible securities Scudder Growth and Income Fund and Scudder Short Term Bond Fund may invest in convertible securities which may offer higher income than the common stocks into which they are convertible. The convertible securities in which the Funds may invest include fixed-income or zero coupon debt securities which may be converted or exchanged at a stated or determinable exchange ratio into underlying shares of common stock. Prior to their conversion, convertible securities may have characteristics similar to both nonconvertible debt securities and equity securities. Portfolio turnover rate Scudder Short Term Bond Fund's active management of mortgage holdings in 1995 resulted in a higher portfolio turnover rate. A higher rate involves greater transaction costs to the Fund and may result in the realization of net capital gains, which would be taxable to shareholders when distributed. When-issued securities Scudder Short Term Bond Fund may purchase securities on a when-issued or forward delivery basis, for payment and delivery at a later date. The price and yield are generally fixed on the date of commitment to purchase. During the period between purchase and settlement, 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. Repurchase agreements As a means of earning income for periods as short as overnight, each Fund may enter into repurchase agreements with selected banks and broker/dealers. Under a repurchase agreement, a Fund acquires securities, subject to the seller's agreement to repurchase them at a specified time and price. Scudder Short Term Bond Fund may enter into repurchase commitments with any party deemed creditworthy by the Adviser, including foreign banks and broker/dealers, if the transaction is entered into for investment purposes and the counterparty's creditworthiness is at least equal to that of issuers of securities which the Fund may purchase. Mortgage and other asset-backed securities Scudder Short Term Bond Fund may invest in mortgage-backed securities, which are securities representing interests in pools of mortgage loans. These securities provide shareholders with payments consisting of both interest and principal as the mortgages in the underlying mortgage pools are paid off. The timely payment of principal and interest on mortgage-backed securities issued or guaranteed by the Government National Mortgage Association ("GNMA") is backed by GNMA and the full faith and credit of the U.S. Government. These guarantees, however, do not apply to the market value or yield of mortgage-backed securities or to the value of Fund shares. Also, GNMA and other mortgage-backed securities may be purchased at a premium over the maturity value of the underlying mortgages. This premium is not guaranteed and will be lost if prepayment occurs. In addition, the Fund may invest in mortgage-backed securities issued by other issuers, such as the Federal National Mortgage Association (FNMA), which are not guaranteed by the U.S. Government. Moreover, the Fund may invest in debt securities which are secured with collateral consisting of mortgage-backed securities and in other types of mortgage-related securities. The Fund may also invest in securities representing interests in pools of certain other consumer loans, such as automobile loans or 13 Additional information about policies and investments (cont'd) credit card receivables. In some cases, principal and interest payments are partially guaranteed by a letter of credit from a financial institution. Dollar roll transactions Scudder Short Term Bond Fund may enter into dollar roll transactions with selected banks and broker/dealers. Dollar roll transactions are treated as reverse repurchase agreements for purposes of the Fund's borrowing restrictions and consist of the sale by the Fund of mortgage- backed securities, together with a commitment to purchase similar, but not identical, securities at a future date at the same price. In addition, the Fund receives compensation as consideration for entering into the commitment to repurchase. The compensation is paid in the form of a fee. Dollar rolls may be renewed after cash settlement and initially may involve only a firm commitment agreement by the Fund to buy the security. Indexed securities Scudder Short Term Bond Fund may invest in indexed securities, the value of which is linked to currencies, interest rates, commodities, indices or other financial indicators ("reference instruments"). The interest rate or (unlike most fixed-income securities) the principal amount payable at maturity of an indexed security may be increased or decreased, depending on changes in the value of the reference instrument. Strategic Transactions and derivatives Scudder International Fund, Scudder Growth and Income Fund and Scudder Short Term Bond Fund may, but are not required to, utilize various other investment strategies as described below to hedge various market risks (such as interest rates, currency exchange rates, and broad or specific equity or fixed-income market movements), to manage the effective maturity or duration of the Funds' portfolios or to enhance potential gain. These strategies may be executed through the use of derivative contracts. Such strategies are generally accepted as a part of modern portfolio management and are regularly utilized by many mutual funds and other institutional investors. Techniques and instruments may change over time as new instruments and strategies are developed or regulatory changes occur. In the course of pursuing these investment strategies, the Funds may purchase and sell exchange-listed and over-the-counter put and call options on securities, equity and fixed-income indices and other financial instruments, purchase and sell financial futures contracts and options thereon, enter into various interest rate transactions such as swaps, caps, floors or collars and enter into various currency transactions such as currency forward contracts, currency futures contracts, currency swaps or options on currencies or currency futures (collectively, all the above are called "Strategic Transactions"). Strategic Transactions may be used without limit to attempt to protect against possible changes in the market value of securities held in or to be purchased for the Funds' portfolios resulting from securities markets or currency exchange rate fluctuations, to protect the Funds' unrealized gains in the value of its portfolio securities, to facilitate the sale of such securities for investment purposes, to manage the effective maturity or duration of fixed-income securities in the Funds' portfolios, or to establish a position in the derivatives markets as a temporary substitute for purchasing or selling particular securities. Some Strategic Transactions may also be used to enhance potential gain although no more than 5% of the Funds' assets will be committed to Strategic Transactions entered into for non-hedging purposes. Any or all of these investment techniques may be used at any time and in any combination, and there is no particular strategy that dictates the use of one technique rather than another, as use of any Strategic Transaction is a function of numerous variables including market conditions. The ability of the Funds to utilize these Strategic Transactions successfully will depend on the Adviser's ability to predict pertinent market movements, which cannot be assured. The Funds will comply with applicable regulatory requirements when implementing these strategies, techniques and instruments. Strategic Transactions involving financial futures and options thereon will be purchased, sold or entered into only for bona fide hedging, risk management or portfolio management purposes and not for speculative purposes. Please refer to "Risk factors--Strategic Transactions and derivatives" for more information. 14 Risk factors Each Fund's risks are determined by the nature of the securities held and the portfolio management strategies used by the Adviser. The following are descriptions of certain risks related to the investments and techniques that a Fund may use from time to time. Convertible securities. While convertible securities generally offer lower yields than nonconvertible debt securities of similar quality, their prices may reflect changes in the value of the underlying common stock. Convertible securities entail less credit risk than the issuer's common stock. Securities lending. From time to time, a Fund may lend its portfolio securities to registered broker/dealers as described above. The risks of lending portfolio securities, as with other extensions of secured credit, consist of possible delays in receiving additional collateral or in the recovery of the securities or possible loss of rights in the collateral should the borrower fail financially. Loans will be made to registered broker/dealers deemed by the Adviser to be of good standing and will not be made unless, in the judgment of the Adviser, the consideration to be earned from such loans will justify the risk. Zero coupon securities. Zero coupon securities are subject to greater market value fluctuations from changing interest rates than debt obligations of comparable maturities that make current cash distributions of interest. Debt securities. Securities rated BBB by S&P or Baa by Moody's are neither highly protected nor poorly secured. These securities normally pay higher yields but involve potentially greater price variability than higher-quality securities. These securities are regarded as having adequate capacity to repay principal and pay interest, although adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to do so. Moody's considers bonds it rates Baa to have speculative elements as well as investment-grade characteristics. Scudder International Fund may invest no more than 5% of its total assets in debt securities which are rated below investment-grade; that is, rated below Baa by Moody's or BBB by S&P (commonly referred to as "junk bonds"). The lower the ratings of such debt securities, the greater their risks render them like equity securities. The Fund may invest in securities which are rated D by S&P or, if unrated, are of equivalent quality. Securities rated D may be in default with respect to payment of principal or interest. Repurchase agreements. If the seller under a repurchase agreement becomes insolvent, the Fund's right to dispose of the securities may be restricted, or the value of the securities may decline before the Fund is able to dispose of them. In the event of the commencement of bankruptcy or insolvency proceedings with respect to the seller of the securities before repurchase of the securities under a repurchase agreement, the Fund may encounter delay and incur costs, including a decline in the value of the securities, before being able to sell the securities. Some repurchase commitment transactions may not provide the Fund with collateral marked-to- market during the term of the commitment. Mortgage-backed securities. Unscheduled or early payments on the underlying mortgages may shorten the securities' effective maturities and lessen their growth potential. The Fund may agree to purchase or sell these securities with payment and delivery taking place at a future date. A decline in interest rates may lead to a faster rate of repayment of the underlying mortgages and expose the Fund to a lower rate of return upon reinvestment. To the extent that such mortgage-backed securities are held by the Fund, the prepayment right of mortgagors may limit the increase in net asset value of the Fund because the value of the mortgage-backed securities held by the Fund may not appreciate as rapidly as the price of non-callable debt securities. Other asset-backed securities. In addition to prepayment risk, securities representing pools of certain consumer loans present certain risks that are not presented by mortgage-backed securities. These securities may not have the benefit of any security interest in the underlying assets. Also, there is the possibility that recoveries on repossessed collateral may not, in some cases, be available to support payments on these securities. Dollar roll transactions. If the broker/dealer to whom the Fund sells the securities underlying a dollar roll transaction becomes insolvent, the Fund's right to purchase or repurchase the 15 Additional information about policies and investments (cont'd) securities may be restricted; the value of the securities may change adversely over the term of the dollar roll; the securities that the Fund is required to repurchase may be worth less than the securities that the Fund originally held, and the return earned by the Fund with the proceeds of a dollar roll may not exceed transaction costs. Illiquid securities. The absence of a trading market can make it difficult to ascertain a market value for illiquid securities. Disposing of illiquid securities may involve time-consuming negotiation and legal expenses, and it may be difficult or impossible for the Fund to sell them promptly at an acceptable price. Indexed securities. Indexed securities may be positively or negatively indexed, so that appreciation of the reference instrument may produce an increase or a decrease in the interest rate or value at maturity of the security. In addition, the change in the interest rate or value at maturity of the security may be some multiple of the change in the value of the reference instrument. Thus, in addition to the credit risk of the security's issuer, the Fund will bear the market risk of the reference instrument. Strategic Transactions and derivatives. Strategic Transactions, including derivative contracts, have risks associated with them including possible default by the other party to the transaction, illiquidity and, to the extent the Adviser's view as to certain market movements is incorrect, the risk that the use of such Strategic Transactions could result in losses greater than if they had not been used. Use of put and call options may result in losses to a Fund, force the sale or purchase of portfolio securities at inopportune times or for prices higher than (in the case of put options) or lower than (in the case of call options) current market values, limit the amount of appreciation a Fund can realize on its investments or cause a Fund to hold a security it might otherwise sell. The use of currency transactions can result in a Fund incurring losses as a result of a number of factors including the imposition of exchange controls, suspension of settlements or the inability to deliver or receive a specified currency. The use of options and futures transactions entails certain other risks. In particular, the variable degree of correlation between price movements of futures contracts and price movements in the related portfolio position of a Fund creates the possibility that losses on the hedging instrument may be greater than gains in the value of a Fund's position. In addition, futures and options markets may not be liquid in all circumstances and certain over-the-counter options may have no markets. As a result, in certain markets, a Fund might not be able to close out a transaction without incurring substantial losses, if at all. Although the use of futures contracts and options transactions for hedging should tend to minimize the risk of loss due to a decline in the value of the hedged position, at the same time they tend to limit any potential gain which might result from an increase in value of such position. Finally, the daily variation margin requirements for futures contracts would create a greater ongoing potential financial risk than would purchases of options, where the exposure is limited to the cost of the initial premium. Losses resulting from the use of Strategic Transactions would reduce net asset value, and possibly income, and such losses can be greater than if the Strategic Transactions had not been utilized. The Strategic Transactions that Scudder International Fund, Scudder Growth and Income Fund and Scudder Short Term Bond Fund may use and some of their risks are described more fully in each Fund's Statement of Additional Information. Fund distribution and performance information Dividends and capital gains distributions Scudder International Fund intends to distribute dividends from its net investment income, if any, in November or December. Scudder Growth and Income Fund intends to distribute dividends from its net investment income quarterly in April, July, October and December. Each of Scudder Short Term Bond Fund's and Scudder Cash Investment Trust's dividends from net investment income are declared daily and distributed monthly. Scudder Cash Investment Trust may take into account capital gains and losses (other than long-term capital gains) in its daily dividend declaration. 16 Each Fund intends to distribute net realized capital gains after utilization of capital loss carryforwards, if any, in November or December to prevent application of a federal excise tax. An additional distribution may be made within three months of the Funds' fiscal year ends, if necessary. All distributions from shares held in an IRA will automatically be reinvested in additional shares of the Fund. Performance information From time to time, quotations of a Fund's performance may be included in advertisements, sales literature or shareholder reports. All performance figures are historical, show the performance of a hypothetical investment and are not intended to indicate future performance. "Total return" is the change in value of an investment in a Fund for a specified period. The "average annual total return" of a Fund is the average annual compound rate of return of an investment in a Fund assuming that the investment has been held for one year, five years and ten years as of a stated ending date. "Cumulative total return" represents the cumulative change in value of an investment in a Fund for various periods. All types of total return calculations assume that all dividends and capital gains distributions during the period were reinvested in shares of a Fund. Performance for any of the four funds will vary based upon, among other things, changes in market conditions and the level of the Funds' expenses. The "capital change" for Scudder International Fund and Scudder Growth and Income Fund measures return from capital, including reinvestment of any capital gains distributions but does not include the reinvestment of dividends. The "SEC yield" of Scudder Short Term Bond Fund is an annualized expression of the net income generated by the Fund over a specified 30-day (one month) period, as a percentage of the Fund's share price on the last day of that period. This yield is calculated according to methods required by the Securities and Exchange Commission (the "SEC"), and therefore may not equate to the level of income paid to shareholders. The "yield" of Scudder Cash Investment Trust refers to the income generated by an investment in the Fund over a specified seven-day period. The "effective yield" of Scudder Cash Investment Trust is expressed similarly but, when annualized, the income earned by an investment in the Fund is assumed to be reinvested and will reflect the effects of compounding. Fund organization Each Fund is a diversified, open-end management investment company registered under the Investment Company Act of 1940 (the "1940 Act"). Scudder International Fund's activities are supervised by its Board of Directors. Scudder Growth and Income Fund, Scudder Short Term Bond Fund and Scudder Cash Investment Trust's activities are supervised by their respective Board of Trustees. Shareholders have one vote for each share held on matters on which they are entitled to vote. The Funds are not required to and have no current intention of holding annual shareholder meetings, although special meetings may be called for purposes such as electing or removing Directors or Trustees, changing fundamental investment policies or approving an investment management or advisory contract. Shareholders will be assisted in communicating with other shareholders in connection with removing a Director or a Trustee as if Section 16(c) of the 1940 Act were applicable. The prospectuses of the Funds are combined in this prospectus. Each Fund offers only its own shares, yet it is possible that a Fund might become liable for a misstatement regarding another Fund. The Directors and Trustees of each Fund have considered this and approved the use of a combined prospectus. Scudder International Fund Scudder International Fund is a series of Scudder International Fund, Inc., a Maryland corporation whose predecessor was organized in 1953. Scudder Growth and Income Fund Scudder Growth and Income Fund is a series of Scudder Investment Trust. The Trust, formerly known as Scudder Growth and Income Fund, was organized as a Massachusetts business trust in 17 Fund organization (cont'd) September 1984 and on December 31, 1984 assumed the business of its predecessor, which was organized as a Massachusetts corporation in May 1929. Scudder Short Term Bond Fund Scudder Short Term Bond Fund is a series of Scudder Funds Trust. The Trust was organized as a Massachusetts business trust in July 1981 and changed its name from Scudder Target Fund to its current name effective July 3, 1989. The Fund's name and investment objective also were changed to the current ones effective July 3, 1989. Scudder Cash Investment Trust Scudder Cash Investment Trust was organized as a Massachusetts business trust in December 1975. Investment adviser Each Fund retains the investment management firm of Scudder, Stevens & Clark, Inc., a Delaware corporation, to manage the daily investment and business affairs subject to the policies established by the respective Board of Directors or Boards of Trustees. The Directors have overall responsibility for the management of Scudder International Fund under Maryland law. The Trustees have overall responsibility for the management of Scudder Growth and Income Fund, Scudder Short Term Bond Fund and Scudder Cash Investment Trust under Massachusetts law. Each Fund pays the Adviser an investment management or an advisory fee. For each Fund, the fee is graduated so that increases in the Fund's net assets may result in a lower average fee rate and decreases in the Fund's net assets may result in a higher average fee rate. For Scudder Growth and Income Fund, the Adviser receives an investment management fee for these services equal, on an annual basis, to 0.60% of the first $500 million of average daily net assets, 0.55% of such assets in excess of $500 million, 0.50% of such assets in excess of $1 billion, 0.475% of such assets in excess of $1.5 billion and 0.45% of such assets in excess of $2 billion. From August 9, 1994 to August 7, 1995 the management fee for the portion of the Fund's assets over $2 billion was 0.475%. During this time all other management fees were at their current rate. For the fiscal year ended March 31, 1996, the Adviser received an investment management fee of 0.82% of Scudder International Fund's average daily net assets. For the fiscal year ended December 31, 1995, the Adviser received an investment management fee of 0.52% of Scudder Growth and Income Fund's average daily net assets and 0.49% of Scudder Short Term Bond Fund's average daily net assets. For the fiscal year ended June 30, 1995, the Adviser received an investment advisory fee of 0.41% of Scudder Cash Investment Trust's average daily net assets. Each Fund's fee is payable monthly, provided that each Fund will make such interim payments as may be requested by the Adviser not to exceed 75% of the amount of the fee then accrued on the books of the Fund and unpaid. All of the Funds' expenses are paid out of gross investment income. Shareholders pay no direct charges or fees for investment or administrative services. Scudder, Stevens & Clark, Inc. manages Scudder International Fund and Scudder Short Term Bond Fund from its location at 345 Park Avenue, New York, New York. Scudder, Stevens & Clark, Inc. manages Scudder Growth and Income Fund and Scudder Cash Investment Trust from its location at Two International Place, Boston, Massachusetts. Scudder Trust Company, a subsidiary of the Adviser, is the custodian of the retirement plans and is paid an annual fee for some of these plans. Transfer agent Scudder Service Corporation, P.O. Box 2291, Boston, Massachusetts 02107-2291, a subsidiary of the Adviser, is the transfer, shareholder servicing and dividend-paying agent for the Funds. Underwriter Scudder Investor Services, Inc., a subsidiary of the Adviser, is the Funds' principal underwriter. Scudder Investor Services, Inc. confirms, as agent, all purchases of shares of the Funds. Scudder Investor Relations is a telephone information service provided by Scudder Investor Services, Inc. 18 Fund accounting agent Scudder Fund Accounting Corporation, a subsidiary of the Adviser, is responsible for determining the daily net asset value per share and maintaining the general accounting records for the Funds. Custodian Brown Brothers Harriman & Co. is custodian for the Scudder International Fund. State Street Bank and Trust Company is the custodian for Scudder Growth and Income Fund, Scudder Short Term Bond Fund and Scudder Cash Investment Trust. Transaction information Making contributions Contributions are executed at the next calculated net asset value per share after the Funds' transfer agent receives the contribution request in good order. Contributions are made in full and fractional shares. (See "Share price.") The Funds reserve the right to reject any purchase order for any reason. By check. If you make a contribution with a check that does not clear, your contribution will be canceled and you will be subject to any losses or fees incurred in the transaction. Checks must be drawn on or payable through a U.S. bank. If you make a contribution by check and request a distribution within seven business days of the contribution, each Fund may hold distribution proceeds until the contribution check has cleared. By exchange. Your new account will have the same registration and address as your existing account. You can also make exchanges among your Scudder fund accounts on SAIL, the Scudder Automated Information Line, by calling 1-800-343-2890. Distributions Distributions may be requested at any time and must be made in writing. However, shareholders who have reached the age of 70 1/2 are required to begin to receive distributions by April 1, following the year in which they reached age 70 1/2. Written requests for distributions should be made in advance of the required distribution date to ensure that the distribution will be made before that time. Shareholders should specify whether they would like the distribution in a lump sum or in installment payments. Each Fund will make the distribution as soon as possible after receiving the written request. Shareholders are also required to take minimum distributions for each year following the year they turned 70 1/2 and these distributions must be made by December 31 of each year. Call 1-800-225-5163 to request an IRA Distribution form. Share price Contributions, distributions and exchanges are made at net asset value. For Scudder International Fund, Scudder Growth and Income Fund and Scudder Short Term Bond Fund, Scudder Fund Accounting Corporation determines net asset value per share as of the close of regular trading on the New York Stock Exchange (the "Exchange"), normally 4 p.m. eastern time, on each day the Exchange is open for trading. For Scudder Cash Investment Trust, Scudder Fund Accounting Corporation determines net asset value per share as of noon, and as of the close of trading on the Exchange, on each day the Exchange is open for trading. Net asset value per share is calculated by dividing the value of total Fund assets, less all liabilities, by the total number of shares outstanding. In calculating the net asset value per share, each Fund uses the current market value of the securities. However, for securities with 60 days or less to maturity, Scudder Cash Investment Trust uses the amortized cost value. Telephone transactions Shareholders automatically receive the ability to exchange by telephone. Each Fund uses procedures designed to give reasonable assurance that telephone instructions are genuine, including recording telephone calls, testing a (Continued on page 21) 19
Contributions, exchanges and distributions -------------------------------------------------------------------------------------------------------------------- Opening Minimum initial investment: $500 an IRA A $2,000 contribution gives you the maximum advantage. Make checks payable to o By Mail Send your completed and signed IRA Application, indicating "New IRA" "Scudder Trust and send a check in the enclosed business reply envelope Company." by regular mail to: or by express, registered, or certified mail to: Scudder Investor Services, Inc. Scudder Shareholder P.O. Box 2291 Service Center Boston, MA 42 Longwater Drive 02107-2291 Norwell, MA 02061-1612 o In Person Visit one of our Funds Centers to complete your application with the help of a Scudder representative. Funds Center locations are listed under How to contact Scudder. -------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- IRA If you've reached age 70 1/2, you must take your Transfers required minimum distribution for the year before you complete the transfer. Send your completed IRA Application and Transfer Request to one of the addresses above. We'll take care of everything for you. -------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- IRA If you've reached age 70 1/2, you must take your Rollovers required minimum distribution for the year before you complete the rollover. Make checks Send your completed and signed IRA Application, indicating payable to "IRA-to-IRA Rollover" and send a check in the enclosed business "Scudder Trust reply envelope for your rollover amount to one of the addresses Company." above. -------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- Direct IRA If you've reached age 70 1/2, you must take your required minimum Rollovers distribution for the year before you complete the rollover. Send your completed and signed IRA Application, indicating "Rollover from Employer Sponsored Plan" and send a check in the enclosed business reply envelope for your rollover amount to one of the addresses above. If a check is not received with your application, an IRA account will be established in your name, and you will be sent confirmation and instructions for sending the proceeds from your plan. -------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- Exchanging Minimum investments: $500 to establish a new account; Shares $50 to exchange among existing IRA accounts o By Telephone To speak with a service representative, call 1-800-225-5163 from 8 a.m. to 8 p.m. eastern time or to access SAIL(TM), Scudder's Automated Information Line, call 1-800-343-2890 (24 hours a day). -------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- Distributions Call 1-800-225-5163 for information and to request the appropriate distribution form. The form will allow you to elect your distributions in a lump sum or in installment payments. Please see "Transaction information--Tax information." --------------------------------------------------------------------------------------------------------------------
20 Transaction information (cont'd) (Continued from page 19) caller's identity and sending written confirmation of telephone transactions. If a Fund does not follow such procedures, it may be liable for losses due to unauthorized or fraudulent telephone instructions. Each Fund will not be liable for acting upon instructions communicated by telephone that it reasonably believes to be genuine. Signature guarantees. For your protection and to prevent fraudulent distributions, on written distribution requests we require an original signature and an original signature guarantee for each person in whose name the account is registered. (Each Fund reserves the right, however, to require a signature guarantee for all distributions.) You can obtain a signature guarantee from most banks, credit unions or savings associations, or from broker/dealers, municipal securities broker/dealers, government securities broker/dealers, national securities exchanges, registered securities associations or clearing agencies deemed eligible by the SEC. Signature guarantees by notaries public are not acceptable. For more information, please call 1-800-225-5163. Processing time All contribution and distribution requests must be received in good order by the Funds' transfer agent. Those requests received by the close of regular trading on the Exchange are executed at the net asset value per share calculated at the close of trading that day. Contribution and distribution requests received after the close of regular trading on the Exchange will be executed the following business day. Contributions received before the close of regular trading on the Exchange will begin earning income the next business day. Shares liquidated to pay a distribution will earn income on the day on which the distribution request is executed. The Funds will normally send distribution proceeds within one business day following the distribution request, but may take up to seven business days (or longer in the case of shares recently contributed by check). Short-term trading Contributions should be made for long-term investment purposes only. Both the Funds and Scudder Investor Services, Inc. each reserves the right to restrict purchases of Fund shares (including exchanges) when a pattern of frequent purchases and sales made in response to short-term fluctuations in a Fund's share price appears evident. Tax information Shareholders are eligible to make a regular IRA contribution for any tax year in which they have "earned income." However, shareholders cannot make a regular contribution for the calendar year in which they reach age 70 1/2 or for any later year. Regular contributions for any tax year must be made during that tax year or by April 15 of the next year. Rollover contributions or transfers to an IRA may be made at any time even if a shareholder has reached the age of 70 1/2, but the minimum required distribution for the year must be taken before a transfer or rollover. Shareholders are allowed to transfer or roll over all or a part of an IRA investment to another IRA without any tax liability. Shareholders may transfer assets directly from one IRA trustee or custodian to another at any time. Shareholders may also take proceeds from an IRA and roll them over, within 60 days, into another IRA; however, only one rollover may be made from a particular IRA during any 12-month period. If shareholders take a distribution from an IRA and do not roll over all of the money received within the 60-day rollover period, they will be subject to federal income tax, and state and local taxes, if applicable, on any portion they keep. In most cases, if shareholders are younger than 59 1/2, they will also be subject to a 10% federal penalty on the amount not rolled over. In addition, if they are to receive a distribution of all or any part of their interest in an employer-maintained retirement plan, then they may roll over all or a portion of the distribution into an IRA either directly from the employer-maintained plan or within 60 days of the day received, unless the distribution is a required minimum distribution or part of a series of substantially equal payments made over a period of 10 years or more, or the shareholder's life expectancy or the joint life 21 Transaction information (cont'd) expectancy of the shareholders and their beneficiaries. Please note that distributions paid directly from an employer plan will be subject to a 20% withholding requirement unless they are required minimum distributions or payments made over a period longer than 10 years of the life expectancy or the joint life expectancy of the shareholders and their beneficiaries. Distributions directly rolled over to an IRA are not subject to 20% withholding. An exchange from one Scudder fund to another in the same IRA does not result in immediate taxable income to the IRA owner. Please refer to the IRA Plan Document for complete information. Social Security number Be sure to complete the Social Security Number section of the IRA application when you open an account. Each Fund reserves the right to reject new account applications without a Social Security number. Each Fund also reserves the right, following 30 days' notice, to distribute all shares in accounts without a Social Security number. A shareholder may avoid involuntary distribution by providing the Fund with a Social Security number during the 30-day notice period. Minimum balances Shareholders should maintain an IRA share balance worth at least $500, which amount may be changed by each Fund's Board of Directors or Board of Trustees. Each Fund reserves the right, following 60 days' written notice to shareholders, to distribute all shares in sub-minimum accounts, including accounts of new investors, where a reduction in value has occurred due to a distribution or exchange out of the account. This distribution may be subject to tax and penalties. Reductions in value that result solely from market activity will not trigger an involuntary distribution. Each Fund will mail the proceeds of the distributed account to the shareholder. The shareholder may restore the share balance to $500 or more during the 60-day notice period and must maintain it at no lower than that minimum to avoid involuntary distribution. Third party transactions If contributions and distributions of Fund shares are arranged and settlement is made at an investor's election through a member of the National Association of Securities Dealers, Inc., other than Scudder Investor Services, Inc., that member may, at its discretion, charge a fee for that service. Redemption-in-kind Scudder International Fund and Scudder Growth and Income Fund reserve the right, if conditions exist which make cash payments undesirable, to honor any request for distribution by making payment in whole or in part in readily marketable securities chosen by each Fund and valued as they are for purposes of computing each Fund's net asset value (a redemption-in-kind). If payment is made in securities, a shareholder may incur transaction expenses in converting these securities to cash. Each Fund has elected, however, to be governed by Rule 18f-1 under the 1940 Act as a result of which the Fund is obligated to redeem shares, with respect to any one shareholder during any 90-day period, solely in cash up to the lesser of $250,000 or 1% of the net asset value of each Fund at the beginning of the period. Shareholder benefits Experienced professional management Scudder, Stevens & Clark, Inc., one of the nation's most experienced investment management firms, actively manages your Scudder fund investment. Professional management is an important advantage for investors who do not have the time or expertise to invest directly in individual securities. A team approach to investing Each Fund 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's portfolio. 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. 22 Scudder International Fund. Lead Portfolio Manager Carol L. Franklin joined Scudder International Fund's portfolio management team in 1986 and has been responsible for setting the Fund's investment strategy and overseeing security selection for the Fund's portfolio since 1992. Ms. Franklin, who has 19 years of experience in finance and investing, joined Scudder in 1981. Nicholas Bratt, Portfolio Manager, directs Scudder's overall global equity investment strategies. Mr. Bratt joined Scudder and the team in 1976. Irene T. Cheng, Portfolio Manager, joined Scudder and the team in 1993. Ms. Cheng has 12 years of experience in finance and investing. Francisco S. Rodrigo III, Portfolio Manager, joined Scudder and the team in 1994. Mr. Rodrigo has been involved with investment in global and international stocks and bonds as a portfolio manager and analyst since 1989. Joan R. Gregory, Portfolio Manager, focuses on stock selection, a role she has played since she joined Scudder in 1992. Ms. Gregory, who joined the team in 1994, has been involved with investment in global and international stocks as an assistant portfolio manager since 1989. Scudder Growth and Income Fund. Lead Portfolio Manager Robert T. Hoffman has had responsibility for setting the Fund's stock investing strategy and overseeing the Fund's day-to-day operations since 1991. Mr. Hoffman, who joined Scudder in 1990 as a portfolio manager, has 12 years of experience in the investment industry, including several years of pension fund management experience. Kathleen T. Millard, Portfolio Manager, has been involved in the investment industry since 1983 and has worked as a portfolio manager since 1986. Ms. Millard, who joined the team and Scudder in 1991, focuses on strategy and stock selection. Benjamin W. Thorndike, Portfolio Manager, is the Fund's chief analyst and strategist for convertible securities. Mr. Thorndike, who has 17 years of investment experience, joined Scudder in 1983 as a portfolio manager and the Fund in 1986. Lori Ensinger, Portfolio Manager, joined the Fund in 1996 and focuses on stock selection and investment strategy. Ms. Ensinger has worked in the investment industry since 1983 and at Scudder since 1993. G. Todd Silva, Portfolio Manager, has focused on stock selection and investment strategy since joining the Fund in 1996. Mr. Silva, who joined Scudder in 1993, has over six years of investment experience. Scudder Short Term Bond Fund. Since the Fund was introduced in 1989, Lead Portfolio Manager Thomas M. Poor has had responsibility for its day-to-day operation. Mr. Poor, who joined Scudder in 1970, sets the Fund's general investment strategies. Christopher L. Gootkind, Portfolio Manager, also has been a member of the Fund's team since its inception. Mr. Gootkind, who has worked as a portfolio manager at Scudder since 1986, has responsibility for the Fund's investments in financial institutions and asset-backed securities. Scott E. Dolan, Portfolio Manager, joined the team in 1994 and is responsible for implementing the Fund's strategy. Mr. Dolan, who joined Scudder in 1989, has four years of experience in compliance analysis and account administration and has worked as a portfolio manager since 1993. Scudder Cash Investment Trust. Lead Portfolio Manager Stephen L. Akers assumed responsibility for the Fund's day-to-day management in 1995. Mr. Akers joined the Fund's team in 1994 and has managed several fixed-income portfolios since joining Scudder in 1984. Robert T. Neff, Portfolio Manager, joined Scudder in 1972 and has more than 20 years experience managing short-term fixed-income assets. Debra A. Hanson, Portfolio Manager, assists with the development and execution of investment strategy and has been with Scudder since 1983. K. Sue Cote, Portfolio Manager, joined Scudder in 1983 and has 12 years experience working with short-term fixed-income investments. SAIL(TM)--Scudder Automated Information Line For personalized account information including fund prices, yields and account balances, to perform transactions in existing Scudder fund accounts, or to obtain information on any Scudder fund, shareholders can call Scudder's Automated Information Line (SAIL) at 1-800-343-2890, 24 hours a day. During periods of extreme economic or market changes, or other conditions, it may be difficult for you to effect telephone transactions in your account. In such an event you should write to the Fund; please see "How to contact Scudder" for the address. 23 Shareholder benefits (cont'd) Shareholder statements All of your Scudder IRA fund investments are reported on one convenient quarterly statement. All of your statements should be retained to help you keep track of account activity. Shareholder reports In addition to consolidated account statements, you receive periodic shareholder reports highlighting relevant information, including investment results and a review of portfolio changes. To reduce the volume of mail you receive, only one copy of most Fund reports, such as the Fund's Annual Report, may be mailed to your household (same surname, same address). Please call 1-800-225-5163 if you wish to receive additional shareholder reports. T.D.D. service for the hearing impaired Scudder's full range of investor information and shareholder services is available to hearing impaired investors through a toll-free T.D.D. (Telephone Device for the Deaf) service. If you have access to a T.D.D., call 1-800-543-7916 for investment information, or specific account questions and transactions. 24 Directors and Officers Scudder International Fund Daniel Pierce* Chairman of the Board and Director Nicholas Bratt* President and Director Paul Bancroft III Director; Venture Capitalist and Consultant Thomas J. Devine Director; Consultant Keith R. Fox Director; President, Exeter Capital Management Corporation William H. Gleysteen, Jr. Director; Consultant Dudley H. Ladd* Director William H. Luers Director; President, The Metropolitan Museum of Art Dr. Wilson Nolen Director; Consultant Juris Padegs* Director, Vice President and Assistant Secretary Dr. Gordon Shillinglaw Director; Professor Emeritus of Accounting, Columbia University Graduate School of Business Robert W. Lear Honorary Director; Executive-in-Residence, Visiting Professor, Columbia University Graduate School of Business Robert G. Stone, Jr. Honorary Director; Chairman of the Board and Director, Kirby Corporation Elizabeth J. Allan* Vice President Carol L. Franklin* Vice President Edmund B. Games, Jr.* Vice President Jerard K. Hartman* Vice President William E. Holzer* Vice President Thomas W. Joseph* Vice President David S. Lee* Vice President and Assistant Treasurer Thomas F. McDonough* Vice President and Secretary Pamela A. McGrath* Vice President and Treasurer Edward J. O'Connell* Vice President and Assistant Treasurer Kathryn L. Quirk* Vice President and Assistant Secretary Richard W. Desmond* Assistant Secretary Coleen Downs Dinneen* Assistant Secretary * Scudder, Stevens & Clark, Inc. 25 Trustees and Officers Scudder Growth and Income Fund, Scudder Short Term Bond Fund and Scudder Cash Investment Trust Daniel Pierce* President and Trustee (1,2) David S. Lee* President and Trustee (3); Vice President (1,2) Henry P. Becton, Jr. Trustee (1,3); President and General Manager, WGBH Educational Foundation Lynn S. Birdsong* Trustee (2) Sheryle J. Bolton Trustee (2); Consultant Thomas J. Devine Trustee (2); Consultant Dawn-Marie Driscoll Trustee (3); Attorney and Corporate Director Cuyler W. Findlay* Vice President and Trustee (3) Peter B. Freeman Trustee (2,3); Corporate Director and Trustee Dudley H. Ladd* Vice President (3) and Trustee (1,3) George M. Lovejoy, Jr. Trustee (1,3); President and Director, Fifty Associates Wesley W. Marple, Jr. Trustee (1); Professor of Business Administration, Northeastern University Dr. Wilson Nolen Trustee (2); Consultant Juris Padegs* Trustee (1,2) Jean C. Tempel Trustee (1); General Partner, TL Ventures Stephen L. Akers* Vice President (3) Bruce F. Beaty* Vice President (1) Jerard K. Hartman* Vice President Robert T. Hoffman* Vice President (1) Thomas W. Joseph* Vice President Valerie F. Malter* Vice President (1) Robert T. Neff* Vice President (3) Thomas M. Poor* Vice President (2) Thomas F. McDonough* Vice President, Secretary; Assistant Treasurer (1,2) Pamela A. McGrath* Vice President and Treasurer Edward J. O'Connell* Vice President and Assistant Treasurer Kathryn L. Quirk* Vice President and Assistant Secretary (2) Coleen Downs Dinneen* Assistant Secretary * Scudder, Stevens & Clark, Inc. (1) Scudder Growth and Income Fund (2) Scudder Short Term Bond Fund (3) Scudder Cash Investment Trust All Funds unless otherwise indicated. 26
Investment products and services The Scudder Family of Funds Money market Growth Scudder Cash Investment Trust Scudder Capital Growth Fund Scudder U.S. Treasury Money Fund Scudder Development Fund Income Scudder Emerging Markets Growth Fund Scudder Emerging Markets Income Fund Scudder Global Discovery Fund Scudder Global Bond Fund Scudder Global Fund Scudder GNMA Fund Scudder Gold Fund Scudder High Yield Bond Fund Scudder Greater Europe Growth Fund Scudder Income Fund Scudder International Fund Scudder International Bond Fund Scudder Latin America Fund Scudder Short Term Bond Fund Scudder Pacific Opportunities Fund Scudder Zero Coupon 2000 Fund Scudder Quality Growth Fund Growth and Income Scudder Small Company Value Fund Scudder Balanced Fund Scudder Value Fund Scudder Growth and Income Fund The Japan Fund In addition to these taxable funds, Scudder offers a choice of tax free funds which are best for non-IRAs. ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Retirement Plans and Tax-Advantaged Investments IRAs 403(b) Plans Keogh Plans SEP-IRAs Scudder Horizon Plan*+++ (a variable annuity) Profit Sharing and 401(k) Plans Money Purchase Pension Plans ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- Closed-end Funds# Institutional Cash Management The Argentina Fund, Inc. Scudder Institutional Fund, Inc. The Brazil Fund, Inc. Scudder Fund, Inc. The First Iberian Fund, Inc. Scudder Treasurers Trust(TM)++ The Korea Fund, Inc. The Latin America Dollar Income Fund, Inc. Montgomery Street Income Securities, Inc. Scudder New Asia Fund, Inc. Scudder New Europe Fund, Inc. Scudder World Income Opportunities Fund, Inc. ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- For complete information on any of the above Scudder funds, including management fees and expenses, call or write for a free prospectus. Read it carefully before you invest or send money. *Not available in all states. +++A no-load variable annuity contract provided by Charter National Life Insurance Company and its affiliate, offered by Scudder's insurance agencies, 1-800-225-2470. #These funds, advised by Scudder, Stevens & Clark, Inc., are traded on various stock exchanges. ++For information on Scudder Treasurers Trust(TM), an institutional cash management service that utilizes certain portfolios of Scudder Fund, Inc. ($100,000 minimum), call: 1-800-541-7703.
27
How to contact Scudder Account Service and Information: Please address all correspondence to: For existing account service Scudder Investor The Scudder Funds and transactions Relations P.O. Box 2291 1-800-225-5163 Boston, Massachusetts 02107-2291 For personalized Scudder Automated information about your Information Line Scudder accounts; (SAIL) Visit the Scudder World Wide Web Site at: exchanges and redemptions; or 1-800-343-2890 http://funds.scudder.com information on any Scudder fund Investment Information: Or Stop by a Scudder Funds Center: To receive information about Scudder Investor Many shareholders enjoy the personal, one-on-one the Scudder funds, for Relations service of the Scudder Funds Centers. Check for a additional applications and 1-800-225-2470 Funds Center near you--they can be found in the prospectuses, or for following cities: investment questions For establishing 401(k) and Scudder Defined Boca Raton New York 403(b) plans Contribution Services Boston Portland, OR 1-800-323-6105 Chicago San Diego Cincinnati San Francisco Los Angeles Scottsdale For information on Scudder Treasurers Trust(TM), an For information on Scudder Institutional Funds*, funds institutional cash management service for designed to meet the broad investment management and corporations, non-profit organizations and trusts service needs of banks and other institutions, call: which utilizes certain portfolios of Scudder Fund, Inc.* 1-800-854-8525. ($100,000 minimum), call: 1-800-541-7703. Scudder Investor Relations and Scudder Funds Centers are services provided through Scudder Investor Services, Inc., Distributor. * Contact Scudder Investor Services, Inc., Distributor, to receive a prospectus with more complete information, including management fees and expenses. Please read it carefully before you invest or send money.
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