The Scudder European Equity, the Scudder International Equity and the Scudder International Select Equity funds had turnover rates for fiscal 2001 of 261%, 177% and 146%, respectively, Dow Jones reports.
Alarmingly, the International Equity fund began fiscal 2002 with $825 million in assets but went through $2.15 billion worth of redemptions that year. Scudder managed $685 billion of assets as of Sept. 30.
The prospectus amendment filing also revealed that Scudder terminated the relationship with the unnamed market-timing investment firm sometime in 2003, after management began looking into the suspicious matter at the beginning of the year. The new investment team took the helm a year earlier.
"The inquiry into market timing in the Scudder Funds is ongoing," the filing also said. Deutsche spokeswoman Judy Inosanto declined to comment beyond the SEC document for Reuters. Last November, following a Boston Globe report that Massachusetts was examining market timing at Scudder, parent company Deutsche confirmed it was cooperating with a number of regulators.
