[Image] Scudder Zero Coupon 2000 Fund 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
April 1, 1997
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1. What Is The Fund's Objective?
Scudder Zero Coupon 2000 Fund seeks to provide as high an investment
return over a selected period as is consistent with investment in U.S.
Government securities and the minimization of reinvestment risk.
2. What Does The Fund Invest In?
The Fund invests primarily (at least 80% of net assets) in zero coupon
securities, including U.S. Government securities and privately
stripped coupons on, and receipts for, U.S. Government securities.
These securities pay no cash income but are issued at substantial
discounts from their value at maturity. When held to maturity their
entire return comes from the difference between their issue price and
their maturity value. In order to obtain the predicted return,
investors should plan to hold shares of the Fund until maturity and
elect automatic reinvestment of dividends and distributions. At least
50% of net assets will be invested in zero coupon securities maturing
within two years of the Fund's maturity date. The Fund matures on the
third Friday of December 2000. At that time, the Fund will be
converted to cash and distributed to shareholders or reinvested in
another fund of their choice.
The average duration of the Fund will be maintained within 12 months
of the Fund's target date.
The Fund will invest in zero coupon securities which are rated AAA or
AA by Standard & Poor's, or Aaa or Aa by Moody's Investors Service,
Inc. or their equivalents as judged by the adviser.
3. What Are The Risks Of Investing In The Fund?
Though it is possible to calculate an anticipated return on an
investment in the Fund, the anticipated growth rate of the Fund cannot
be guaranteed, as it involves certain assumptions about variable
factors, such as reinvestment of dividends and distributions, the
expense ratio and Fund composition. The rate will vary from day to day
due to changes in interest rates and other market factors affecting
the value of the Fund's investments.The net asset value of the Fund's
shares increases or decreases with changes in the market value of the
Fund's investments which vary inversely with changes in prevailing
interest rates. When interest rates rise, the Fund may decline more in
price than a fund investing in interest paying securities of similar
maturity. The Fund's shares are likely to have substantially more
price volatility than shares of funds investing in traditional
fixed-income investments. A shareholder who redeems prior to the
maturity date (December 2000) may receive a significantly different
investment return than was anticipated at the time of purchase.
You incur principal risk when you invest because your shares, when
sold, may be worth more or less than what you paid for them.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking returns
available on U.S. Government securities with a predictability of
return over a selected time period. The Fund may be appropriate for
investors planning for future anticipated expenses, such as the
college education of children. The Fund may not be appropriate for
investors who do not plan to hold their shares until maturity.
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 Zero Coupon 2000 Fund are:
Shareholder transaction expenses --
Expenses charged directly to your account for various transactions.
Sales Commission None
Commissions to Reinvest Dividends None
Redemption Fee None
Exchange Fee None
Annual Fund operating expenses (after expense maintenance) --
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,
1995, during which Scudder maintained the total annualized expenses
of the Fund at not more than 1.00% of average daily net assets. Had
Scudder not done so, expenses would have amounted to 1.48%,
including 0.60% for management fees. Scudder will continue this
expense maintenance until December 31, 1997.
Investment management fee (after waiver) 0.12%
12b-1 fees None
Other expenses 0.88%
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Total Fund operating expenses 1.00%
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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
$10 $32 $55 $122
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.
Please note that there is a $5 service fee if you request redemption
proceeds via wire.
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 may not be indicative of future results. Total return and
principal value will fluctuate.
BAR CHART TITLE: Total returns for years ended December 31:
BAR CHART DATA:
1987 -8.01%
1988 11.71
1989 20.39
1990 4.59
1991 20.03
1992 8.13
1993 16.00
1994 -7.93
1995 19.08
1996 0.65
The Fund's Average Annual Total Return
for the period ended March 31, 1997
One Year 2.70%
Five Years 7.67%
Ten Years 7.76%
If the adviser had not maintained the Fund's expenses, average annual
total return for the one year, five year and ten year periods would
have been lower.
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.
Lead Portfolio Manager Ruth Heisler has responsibility for overseeing
the Fund's day-to-day operations and for implementing the Fund's
investment strategies. Ms. Heisler has been in charge of the Fund's
security selection since 1988 and has been involved with bond research
and investing at Scudder since 1953. Renee L. Ross, Portfolio Manager,
assists Ms. Heisler with trading bonds for the Fund's portfolio. Ms.
Ross, who has 10 years' experience as a portfolio manager, joined the
team in 1986, and has worked at Scudder since 1981. Stephen A. Wohler,
Portfolio Manager, joined the team in 1994 and is also responsible for
implementing the Fund's strategy. Mr. Wohler has over 16 years'
experience managing fixed-income investments and has been with Scudder
since 1979.
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
($1,000 for IRAs), except that shareholders may open a regular account
with a minimum of $1,000 if an investment program of at least
$100/month is established. A shareholder with a non-fiduciary account
who maintains an account balance of less than $2,500 without
establishing an investment program, may be assessed an annual fee of
$10.00, payable to the Fund. 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?
The Fund typically makes dividends and capital gains distributions, if
any, in November or December. You may elect to receive distributions
in cash or have them reinvested in additional shares of the Fund.
Generally, dividends from net investment income are 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.
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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