NOTES TO FINANCIAL STATEMENTS
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME. Investment transactions are accounted
for on the trade date. Interest income is recorded on the accrual basis. Realized gains and losses from investment
transactions are recorded on an identified cost basis. All discounts are accreted for both tax and financial
reporting purposes.
2 PURCHASE AND SALES
OF SECURITIES For the six months ended May 31, 2000, investment
transactions (excluding short-term instruments) are
as follows:
Purchases $179,914,445
Proceeds from sales 171,364,770
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3 TRANSACTIONS WITH
AFFILIATES MANAGEMENT AGREEMENT. The Fund has a management
agreement with Scudder Kemper Investments, Inc.
(Scudder Kemper) and pays a monthly investment
management fee of 1/12 of the annual rate of .55%
of average weekly net assets. The Fund incurred a
management fee of $1,880,835 for the six months
ended May 31, 2000.
SHAREHOLDER SERVICES AGREEMENT. Pursuant to a
services agreement with the Fund's transfer agent,
Kemper Service Company (KSvC) is the shareholder
service agent of the Fund. Under the agreement,
KSvC received shareholder services fees of $23,710
for the six months ended May 31, 2000 of which
$27,147 is unpaid.
OFFICERS AND TRUSTEES. Certain officers or trustees
of the Fund are also offi