[Image] Scudder Short Term Bond 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
November 1, 1997
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1. What Is The Fund's Objective?
Scudder Short Term Bond Fund seeks to provide a high level of income
consistent with a high degree of principal stability.
2. What Does The Fund Invest In?
The Fund invests primarily in high quality short-term bonds. The
dollar-weighted average effective maturity of the Fund's portfolio may
not exceed three years. At least 65% of the Fund's net assets are
invested in (a) U.S. Government securities, and (b) corporate debt
securities, mortgage- and other asset-backed securities rated, at the
time of purchase, in one of the two highest ratings categories of
Standard & Poor's (AAA or AA) or Moody's Investors Service, Inc. (Aaa
or Aa) or, if not rated, judged to be of comparable quality by
Scudder. In addition, the Fund may invest in money market instruments,
privately placed obligations and foreign securities that meet the same
criteria as the Fund's domestic holdings. For temporary defensive
purposes, the Fund may invest more than 35% of its assets in money
market instruments.
The Fund's investment adviser, Scudder, Stevens & Clark, Inc. makes
investment decisions based on general economic and financial trends,
such as domestic and international economic development, the outlook
for the securities markets, the level of interest rates and inflation,
the supply and demand of debt securities, and other factors.
3. What Are The Risks Of Investing In The Fund?
Though the Fund seeks to provide a high degree of principal stability,
the Fund's share price may vary from day to day with changes in
interest rates and bond market conditions. The Fund's share price
tends to rise as interest rates decline and decline as interest rates
rise. This fluctuation should be more moderate than that of a fund
with a longer average maturity. 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 high current
income and:
o plan to hold your investment for several years,
o can tolerate fluctuations in share price, and
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 Short Term Bond Fund 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 0.29%
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Total Fund operating expenses 0.80%
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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
$8 $26 $44 $99
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 6.14%.
THE ORIGINAL DOCUMENT CONTAINS A BAR CHART HERE.
BAR CHART TITLE: Total returns for years ended December 31:
BAR CHART DATA:
1987 1.42%
1988 6.31
1989 13.28
1990 9.88
1991 14.38
1992 5.43
1993 8.18
1994 -2.87
1995 10.74
1996 3.86
The Fund's Average Annual Total Return
for the period ended September 30, 1997
One Year 6.52%
Five Years 4.87%
Ten Years 7.86%
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.
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. 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. Susan R. Martland, Portfolio Manager, joined the
team in 1997. Ms. Martland, who helps set the Fund's investment
strategy, joined Scudder in 1982 and has over nine years' experience
as a portfolio manager.
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 check, 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.
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. It is not expected that dividends will
qualify for the dividends-received deduction for corporations.
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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