[Image] Scudder Managed Municipal Bonds Profile [Image]
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The fund profile, a supplement to the full prospectus, is designed as
an easy-to-read summary of fund risks, fees, and objectives. You can
click on any question to link to the Fund's prospectus and get more
information on that topic. Or, if you wish, you can proceed directly
to the Fund's prospectus. Once you have read the prospectus and
considered your investment goals, you can proceed to a Scudder Funds
application.
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Fund Profile
November 1, 1997
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1. What Is The Fund's Objective?
Scudder Managed Municipal Bonds seeks to provide income exempt from
regular federal income tax primarily through investment in high-grade,
long-term municipal securities.
2. What Does The Fund Invest In?
The Fund attempts to take advantage of opportunities in the market
caused by such factors as temporary yield disparities among individual
issues or classes of securities in an effort to achieve better capital
performance than that of an unmanaged portfolio of municipal bonds. At
least 80% of the Fund's net assets will normally be invested in
municipal bonds.
Normally, the Fund invests at least 65% of its net assets in
securities rated, or issued by an issuer rated, within the three
highest quality rating categories of Moody's Investors Service, Inc.
(Aaa, Aa and A), Standard & Poor's or Fitch Investors Service,
Inc.(AAA, AA and A) or their equivalents, or if unrated, judged by the
Fund's investment adviser, Scudder, Stevens & Clark, Inc. to be of
comparable quality at the time of purchase. The Fund may invest up to
10% of its assets in debt securities rated lower than Baa by Moody's,
BBB by S&P or Fitch or of equivalent quality as determined by the
adviser, but will not purchase bonds rated below B by Moody's, S&P or
Fitch, or their equivalent.
The Fund has the flexibility to invest in municipal securities with
short-, medium- and long-term maturities. During recent years, it has
been invested primarily in long-term (i.e., more than 10 years)
municipal securities. The Fund may invest more than 25% of its assets
in industrial development or other private activity bonds. The Fund
may invest more than 20% of its assets in taxable securities to meet
temporary liquidity requirements. The Fund may invest up to 20% of its
assets in securities subject to the alternative minimum tax.
3. What Are The Risks Of Investing In The Fund?
The Fund's share price and yield may fluctuate daily in response to
changing bond market conditions. In addition, changes in fiscal and
monetary policies, interest rate levels, the perceived
creditworthiness of issuers, and general economic conditions may
affect the value of the Fund's holdings, which determine the Fund's
share price. Furthermore, the Fund's holdings in unrated securities
and securities rated below investment-grade (i.e., "junk bonds") carry
a greater risk of default and more price volatility than securities
rated investment-grade. These types of securities are especially
subject to adverse changes in economic conditions, to changes in the
financial condition of their issuers, and to price fluctuation in
response to changes in interest rates. The Fund's share price will
fall as interest rates rise. You incur principal risk when you invest
because your shares, when sold, may be worth more or less than what
you paid for them.
During recent years, the Fund's portfolio has been invested primarily
in long-term municipal bonds. The yield and the potential for price
fluctuation are generally greater, the longer the maturity of the
municipal security.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking potentially
higher after-tax income than offered by comparable taxable investments
and:
o plan to hold your investment for several years,
o can tolerate fluctuations in share price and yield,
o have or plan to have other investments for the benefit of
diversification.
5. What Are The Fund's Expenses And Fees?
There are two kinds of expenses that a shareholder may incur, directly
or indirectly, by investing in a mutual fund. These types of expenses,
as they relate to Scudder Managed Municipal Bonds are:
Shareholder transaction expenses --
Expenses charged directly to your account for various transactions.
Please note that there is a $5 service fee if you request redemption
proceeds via wire.
Sales Commission None
Commissions to Reinvest Dividends None
Redemption Fee None
Exchange Fee None
Annual Fund operating expenses --
Expenses paid by the Fund before it distributes its net investment
income, expressed as a percentage of the Fund's average daily net
assets. Figures below are for the fiscal year ended December 31,
1996.
Investment management fee 0.51%
12b-1 fees None
Other expenses 0.12%
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Total Fund operating expenses 0.63%
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Example:
Assuming a 5% annual return and redemption at the end of each
period, the total expenses relating to a $1,000 investment would be:
1 Year 3 Years 5 Years 10 Years
$6 $20 $35 $79
This example assumes reinvestment of all dividends and distributions
and that the total Fund operating expenses listed above 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.
6. How Has The Fund Performed Historically?
This chart shows how the Fund has performed over the past 10 years,
assuming reinvestment of all distributions. Performance is historical
and is no guarantee of future results. Total return and principal
value will fluctuate. The Fund's 30-day net annualized SEC yield on
September 30, 1997 was 4.47%.
THE ORIGINAL DOCUMENT CONTAINS A BAR CHART HERE
BAR CHART TITLE: Total Returns for years ended December 31:
BAR CHART DATA:
1987 0.34%
1988 12.27
1989 11.19
1990 6.77
1991 12.23
1992 8.98
1993 13.32
1994 -6.04
1995 17.12
1996 4.15
The Fund's Average Annual One Year Five Years Ten Years
Total Return for the period ------------------------------------
ended September 30, 1997 9.30% 7.20% 8.97%
7. Who Manages The Fund?
The Fund's investment adviser is Scudder, Stevens & Clark, Inc., a
leading provider of U.S. and international investment management for
clients throughout the world. The Fund is managed by a team of Scudder
investment professionals who each play an important role in the Fund's
management process. Donald C. Carleton, Lead Portfolio Manager, has
been a portfolio manager at Scudder since he joined the firm in 1983.
Philip Condon, Portfolio Manager, has worked at Scudder since 1983.
8. How Can I Invest?
To make it easy for you to open an account, you may invest by mail,
phone, fax, or in person. The minimum initial investment is $2,500,
except that shareholders may open an account with at least $1,000 if
an automatic investment plan of $100/month is established. Scudder
retirement plans and certain other accounts have similar or lower
minimum share balance requirements. A shareholder who maintains a
nonfiduciary account balance of less than $2,500 without establishing
an automatic investment plan, will be assessed an annual fee of
$10.00, payable to the Fund. Retirement accounts and certain other
accounts will not be assessed the $10.00 charge. You may also exchange
Fund shares free of charge within the Scudder Family of Funds.
9. How Can I Redeem Shares?
You may redeem shares at the current share price on any business day
by telephone, fax, or mail.
10. When Are Distributions Made?
Dividends are declared daily and distributed monthly. Capital gains
distributions, if any, will be made in November or December. You may
elect to receive distributions in cash or have them reinvested in
additional shares of the Fund.
Distributions of tax-exempt income are not subject to federal income
taxes, except for the possible applicability of the alternative
minimum tax. However, distributions may be subject to state and local
income taxes. A portion of the Fund's income, including income from
repurchase agreements, gains from options, and market discount bonds,
may be taxable to shareholders as ordinary income. Long-term capital
gains distributions, if any, are taxable as long-term capital gains
regardless of the length of time shareholders have owned shares.
Short-term capital gains and any other taxable income distributions
are taxable as ordinary income. Distributions of tax-exempt income are
taken into consideration in computing the portion, if any, of Social
Security and railroad retirement benefits subject to federal and, in
some cases, state taxes.
11. What Services Does Scudder Provide?
As a shareholder, you'll enjoy:
o professional service from representatives who can answer your
questions and execute your transactions
o automated toll-free touchtone access to account information,
share prices and yields, and to perform transactions
o Scudder's quarterly shareholder newsletter, Scudder Perspectives
o regular, informative reports about the performance of your Fund
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[Image]Scudder wants you to make informed investment decisions. This
Fund Profile contains key information about the Fund. If you would
like more information before you invest, please consult the Fund's
accompanying prospectus. For details about the Fund's holdings or
recent investment strategies, please review the Fund's most recent
annual or semiannual report. The reports are free and may be ordered
by calling 1-800-225-2470.
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