Scudder
Medium Term
Tax Free Fund
Semiannual Report
June 30, 1997
Pure No-Load(TM) Funds
A fund that seeks to provide a high level of tax-free income and limited
principal fluctuation by investing in high-grade municipal securities of
intermediate maturity.
A pure no-load(TM) fund with no commissions to buy, sell, or exchange shares.
<PAGE>
In Brief
o Scudder Medium Term Tax Free Fund's 30-day net annualized SEC yield was 4.30%
as of June 30, 1997. For investors in the two highest federal tax brackets of
36% and 39.6%, the Fund's yield was equivalent to a fully taxable 6.72% and
7.12%, respectively.
o The Fund received five stars from Morningstar, reflecting their highest rating
for risk-adjusted performance through June 30, 1997.*
o For one-, three-, and five-year periods, the Fund placed in the top quartile
of total return performance among similar municipal bond funds as tracked by
Lipper Analytical Services. Please see page 6 for additional Lipper performance
information.
* For your information, these ratings are subject to change every month and are
calculated from the Fund's five-year average annual return in excess of 90-day
Treasury bill returns with appropriate fee adjustments, and a risk factor that
reflects fund performance below T-bill returns. 10% received five stars, 22.5%
received four stars, 35% three stars, 22.5% two stars, and the bottom 10% one
star. The Fund received five stars for three-year performance and five stars
for five-year performance among 1,315 and 640 municipal funds, respectively.
Past performance is no guarantee of future returns.
Table of Contents
2 In Brief 20 Financial Statements
3 Letter from the Fund's President 23 Financial Highlights
4 Performance Update 24 Notes to Financial Statements
5 Portfolio Summary 28 Officers and Trustees
6 Portfolio Management Discussion 29 Investment Products and Services
9 Investment Portfolio 30 Scudder Solutions
2 - Scudder Medium Term Tax Free Fund
<PAGE>
Letter From the Fund's President
Dear Shareholders,
We are pleased to report to you on Scudder Medium Term Tax Free Fund's
performance over its most recent semiannual period ended June 30, 1997. In
addition to the Fund's five-star ("highest") Morningstar rating as of June 30
(see "In Brief" on page 2), the Fund placed in the top quartile of similar tax
free funds tracked by Lipper for total return performance over one-, three-, and
five-year periods. The Fund posted a 4.30% 30-day net annualized SEC yield as of
June 30, which is equivalent to a taxable yield of 7.12% for investors in the
top federal tax bracket. As outlined in the discussion that follows, during the
first six months of its fiscal year the Fund has continued to focus on
high-grade, five- to 15-year municipal bonds in pursuit of high after-tax yields
and favorable total returns. Please read the discussion beginning on page 6 for
more information.
For those of you who wish to keep abreast of new products and services, we
would like to take this opportunity to tell you about a recent addition to
Scudder's family of funds -- Scudder International Growth and Income Fund. The
Fund employs a yield-oriented approach to international investing and seeks to
provide long-term growth of capital plus current income. Investors who desire
international exposure but who wish to take a relatively conservative approach
to international investing may appreciate the Fund's emphasis on the dividend
paying stocks of well-established companies outside the United States.
For a complete listing of Scudder's mutual fund offerings, see page 29.
If you have any questions regarding Scudder Medium Term Tax Free Fund or
any other Scudder fund, please do not hesitate to call Investor Relations at
1-800-225-2470. Or visit Scudder's Website at http://funds.scudder.com.
Sincerely,
/s/David S. Lee
David S. Lee
President,
Scudder Medium Term Tax Free Fund
3 - Scudder Medium Term Tax Free Fund
<PAGE>
INSERT FUND REPORTING PAGE HERE
PERFORMANCE UPDATE as of June 30, 1997
- ----------------------------------------------------------------
FUND INDEX COMPARISONS
- ----------------------------------------------------------------
Total Return
Period Growth --------------
Ended of Average
6/30/97 $10,000 Cumulative Annual
- --------------------------------------
SCUDDER GROWTH AND INCOME FUND
- --------------------------------------
1 Year $ 10,747 7.47% 7.47%
5 Year $ 13,700 37.00% 6.50%
10 Year $ 19,112 91.12% 6.69%
- --------------------------------------
LEHMAN BROTHERS MUNICIPAL BOND INDEX
- --------------------------------------
1 Year $ 10,827 8.27% 8.27%
5 Year $ 14,091 40.91% 7.10%
10 Year $ 21,945 119.45% 8.17%
- --------------------------------------
- -----------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- -----------------------------------------------------------------
A chart in the form of a line graph appears here,
illustrating the Growth of a $10,000 Investment.
The data points from the graph are as follows:
Yearly periods ended June 30
SCUDDER MEDIUM TERM TAX FREE FUND
Year Amount
- ----------------------
'87 $10,000
'88 $10,450
'89 $10,929
'90 $11,564
'91 $12,498
'92 $13,950
'93 $15,488
'94 $15,728
'95 $16,909
'96 $17,783
'97 $19,112
LEHMAN BROTHERS MUNICIPAL BOND INDEX
Year Amount
- ----------------------
'87 $10,000
'88 $10,741
'89 $11,964
'90 $12,780
'91 $13,931
'92 $15,573
'93 $17,436
'94 $17,466
'95 $19,006
'96 $20,268
'97 $21,945
The unmanaged Lehman Brothers Municipal Bond Index is a market value-
weighted measure of the long-term, investment grade tax-exempt bond market
consisting of municipal bonds with a maturity of at least two years. Generally,
the Index's average effective maturity is longer than the Fund's. Index returns
assume dividends are reinvested and, unlike Fund returns, do not reflect any
fees or expenses.
- -----------------------------------------------------------------
RETURNS AND PER SHARE INFORMATION
- -----------------------------------------------------------------
A chart in the form of a bar graph appears here,
illustrating the Fund Total Return (%) and Index Total
Return (%) with the exact data points listed in the table
below.
Yearly periods Ended June 30
<TABLE>
<CAPTION>
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------
NET ASSET VALUE... $ 10.13 $ 10.03 $ 10.04 $ 10.22 $ 10.72 $ 11.20 $ 10.72 $ 10.95 $ 10.92 $ 11.17
INCOME DIVIDENDS.. $ .53 $ .55 $ .55 $ .61 $ .65 $ .64 $ .57 $ .55 $ .53 $ .52
CAPITAL GAINS
DISTRIBUTIONS..... $ - $ - $ - $ - $ .01 $ .03 $ .09 $ - $ .07 $ .03
FUND TOTAL
RETURN (%)........ 4.50 4.58 5.81 8.08 11.62 11.02 1.55 7.50 5.17 7.47
INDEX TOTAL
RETURN (%)........ 7.42 11.39 6.81 9.01 11.77 11.96 .20 8.82 6.64 8.27
</TABLE>
*ON NOVEMBER 1, 1990, THE FUND ADOPTED ITS PRESENT NAME AND OBJECTIVES.
PRIOR TO THAT DATE, THE FUND WAS KNOWN AS THE 1990 PORTFOLIO OF THE SCUDDER TAX
FREE TARGET FUND AND ITS OBJECTIVE WAS TO PROVIDE HIGH TAX-FREE INCOME AND
CURRENT LIQUIDITY. SINCE ADOPTING ITS CURRENT OBJECTIVES, THE CUMULATIVE AND
AVERAGE ANNUAL TOTAL RETURNS ARE 62.70% AND 7.58%, RESPECTIVELY. All performance
is historical, assumes reinvestment of all dividends and capital gains, and is
not indicative of future results. Investment return and principal value will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than when purchased. If the Adviser had not temporarily capped expenses for the
period November 1, 1990 through October 31, 1995, the average annual total
return of the Fund for the five year and ten year periods would have been lower.
4 - Scudder Medium Term Tax Free Fund
<PAGE>
PORTFOLIO SUMMARY as of June 30, 1997
- ---------------------------------------------------------------------------
DIVERSIFICATION
- ---------------------------------------------------------------------------
Electric Utility Revenue 20%
Core Cities/Lease 17%
Hospital/Health 13%
State General Obligation 10%
Other General Obligation/Lease 6%
School District/Lease 6%
Resource Recovery 5%
Sales & Special Tax 5%
Toll Revenue 5%
Miscellaneous Municipal 13%
- --------------------------------------
100%
- --------------------------------------
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
Scudder Medium Term Tax Free
Fund is broadly diversified - as of
June 30, the Fund held securities
issued in 32 states plus the
District of Columbia and the
Virgin Islands.
- ---------------------------------------------------------------------------
QUALITY
- ---------------------------------------------------------------------------
AAA 58%
AA 16%
A 15%
BBB 10%
NR 1%
- --------------------------------------
100%
- --------------------------------------
Weighted average quality: AA
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
Portfolio quality remains high,
with over 70% of Fund assets
rated AAA or AA.
- ---------------------------------------------------------------------------
EFFECTIVE MATURITY
- ---------------------------------------------------------------------------
Less than 1 year 4%
1 - 5 years 21%
5 - 10 years 60%
10 - 15 years 15%
- --------------------------------------
100%
- --------------------------------------
Weighted average effective maturity: 6.7 years
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
In conjunction with our primary
goals of maximizing the Fund's
yield while maintaining as much
price stability as possible, we
continued to purchase high-grade,
intermediate-maturity municipal
bonds.
5 - Scudder Medium Term Tax Free Fund
<PAGE>
Portfolio Management Discussion
Dear Shareholders,
During its most recent semiannual period Scudder Medium Term Tax Free Fund, and
the bond market in general, benefited from an economic environment that seemed
to be the best of both worlds -- a healthy U.S. economy accompanied by low to
declining inflation. Though the wary bond market's response to this good news
was significantly more modest than that of the stock market, many bonds recorded
price increases. The Fund posted a 2.75% total return for the six months ended
June 30, 1997, based on a $0.02 increase in the Fund's net asset value to
$11.17, plus income distributions of $0.26 per share, short-term capital gains
of $0.01 per share and long-term capital gains of $0.01 per share over the
six-month period. The Fund's return outpaced the 2.50% average total return of
139 similar funds over the same period as measured by Lipper Analytical
Services, Inc. As shown in the accompanying chart, the Fund's average annual
total returns place it in the top quartile of its peer group for one-, three-,
and five-year periods. Please turn to the Performance Update on page 4 for more
information on the Fund's long-term progress, including comparisons with the
unmanaged Lehman Brothers Municipal Bond Index.
Scudder Medium Term Tax Free Fund provided a 30-day net annualized SEC yield of
4.30% as of June 30, equivalent to fully taxable yields of 6.72% and 7.12%,
respectively, for investors in the 36% and 39.6% tax brackets.
Competitive Total Return
(Average annual returns for periods ended June 30, 1997)
-------------------------------------------------------------------
Scudder
Medium
Term Tax Lipper Number
Free average of
Fund annual Funds Percentile
Period return return Rank tracked Ranking
- --------------------------------------------------------------------
Six
months 2.75% 2.50% 42 of 139 Top 30%
1 year 7.47% 6.55% 16 of 134 Top 12%
3 years 6.71% 6.20% 21 of 102 Top 21%
5 years 6.50% 5.95% 8 of 38 Top 21%
10 years 6.69% 6.88% 12 of 20 Top 60%
- --------------------------------------------------------------------
Past performance does not guarantee future results.
Scudder Medium Term Tax Free Fund adopted its current name and objective on
November 1, 1990.
Quiescent Inflation Bolsters Bonds
The U.S. economy roared out of the gate during the first quarter of 1997 at a
4.9% annualized rate of GDP growth, understandably sparking fears of renewed
inflation among many market participants. It then retreated to a more modest
2.2% rate during the second quarter. All the while inflation not only remained
at a low level, but producer prices -- a leading indicator of inflation --
actually fell for six consecutive months from January through June 1997.
6 - Scudder Medium Term Tax Free Fund
<PAGE>
Why has inflation been declining recently? We don't believe there is a single
reason for the subduing of U.S. inflation but rather a convergence of causes.
These include trade deregulation and business globalization, technological
advances, declines in defense spending worldwide following the end of the Cold
War, and reductions in government spending, especially in the United States and
in countries attempting to forge the European Monetary Union.
This economic environment benefited municipal bonds. Yields of 10-year Treasury
bonds rose a fraction of a percentage point, and their prices declined -0.50%,
while 10-year municipal yields declined one tenth of a percentage point and
their prices rose 0.80%. The municipal bond market also benefited from light new
issue volume and steady demand from institutional and individual investors.
High-Grade, Intermediate
Maturity Municipals
In conjunction with our primary goals of maximizing the Fund's yield while
maintaining as much price stability as possible, we continued to purchase
high-grade, intermediate-maturity municipal bonds. On June 30, bonds with
effective maturities between 5 and 15 years represented 75% of the Fund's
portfolio. In addition, we maintained an average effective maturity comparable
to the Fund's competitive universe: As of June 30, 1997, Scudder Medium Term Tax
Free Fund's average effective maturity was 6.7 years. During the period, we also
focused on bonds of New York State and New York City -- including New York City
General Obligation, Metropolitan Transit Authority, and New York State Urban
Development Corporation bonds. These and other New York holdings have greatly
benefited from a steadily improving credit outlook. As of June 30, the Fund held
17% of its portfolio in New York obligations.
Purchasing bonds with sufficient call protection remains a fundamental strategy
for us, ensuring that a significant portion of the Fund's bonds are not retired
before maturity. (Generally, a bond is called in by its issuer so that it can be
refinanced at a lower prevailing rate.) Our emphasis on call protection provides
a more reliable income stream than would exist if the Fund's portfolio held a
significant proportion of bonds that could be called in before their stated
maturities.
Diversification also remains an important strategy for the Fund, allowing us to
spread risk over a large number of sectors, maturities, and geographic areas. As
of June 30, 1997, the Fund held securities issued in 32 states plus the District
of Columbia and the Virgin Islands. Lastly, the Fund's credit quality remains
high, with over 70% of Fund assets rated AAA or AA, or of equivalent quality.
Securities are rated by Standard & Poor's, Moody's Investor Service, Fitch
Investors Service, or, if unrated, assigned a rating by Scudder. The Portfolio
Summary on page 5 provides more information about the Fund's holdings, including
quality, maturity, and sector representation.
7 - Scudder Medium Term Tax Free Fund
<PAGE>
Economic and Market
Prospects
Although we are in the seventh consecutive year of economic growth for the
United States, the odds still appear to favor a continuation of that growth,
perhaps even at a slightly higher rate. At the same time, the enormous expansion
of U.S. consumer credit, among other factors, leaves the U.S. economy little
margin for error. Whether growth continues unabated or is interrupted, we
believe inflation will remain at relatively low levels, which is always a
positive foundation for the bond market.
Over the remainder of Scudder Medium Term Tax Free Fund's fiscal year we will
maintain our emphasis on five- to 15-year maturity bonds and look to add
higher-yielding bonds where opportunities and attractive values present
themselves. We will continue to stress call protection and careful security
selection and to seek high current tax free income and attractive total return
for our investors.
Sincerely,
Your Portfolio Management Team
/s/Donald C. Carleton /s/M. Ashton Patton
Donald C. Carleton M. Ashton Patton
8 - Scudder Medium Term Tax Free Fund
<PAGE>
Investment Portfolio as of June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal Credit Market
Amount($) Rating(e) Value($)
- --------------------------------------------------------------------------------------------------------
Short-Term Municipal Investments 0.9%
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
District Of Columbia
District of Columbia, General Obligation,
General Fund Recovery, Series B, Daily
Demand Note, 3.75%, 6/1/03* .......................... 1,600,000 VMIG1 1,600,000
Florida
St. Johns County, FL, IDA Hospital Revenue,
Flagler Hospital, Series 1996A,
Municipal Auction Security, 3.7%, 12/15/26* (c) ...... 1,000,000 AAA 1,000,000
Kansas
Wamego, KS, Pollution Control Revenue Western
Resources Inc, Floating Rate,
Revenue Bond, 3.82%, 4/15/32* ........................ 1,000,000 AAA 1,000,000
Ohio
Franklin County, OH, Health System, St
Anthony's Medical Center, Daily Demand
Note, 4.5%, 7/1/15* .................................. 200,000 VMIG1 200,000
Pennsylvania
Chester County, PA, Health and Education,
Main Line Health System, Series 1994B,
3.58%, 5/15/20* (c) .................................. 1,000,000 AAA 1,000,000
Texas
Lone Star, TX, Airport Improvement Authority,
Daily Demand Note, 3.8%, 12/1/14* .................... 500,000 VMIG1 500,000
Washington
Washington Healthcare Facilities Authority
Revenue, Fred Hutchinson Cancer Center,
Variable Rate Demand Note, Series 1996, 3.7%, 1/1/23* 285,000 VMIG1 285,000
- --------------------------------------------------------------------------------------------------------
Total Short-Term Municipal Investments (Cost $5,585,000) 5,585,000
- --------------------------------------------------------------------------------------------------------
<CAPTION>
Long-Term Municipal Investments 99.1%
- --------------------------------------------------------------------------------------------------------
Alaska
North Slope Borough, AK, General Obligation:
Capital Appreciation:
Series A, Zero Coupon, 6/30/06 (c) ................. 11,150,000 AAA 7,049,253
Series B, Zero Coupon, 6/30/04 (c) (g) ............. 19,500,000 AAA 13,791,180
Series A, Zero Coupon:
6/30/02 (c) ........................................ 3,275,000 AAA 2,575,951
6/30/03 (c) (g) .................................... 7,000,000 AAA 5,232,360
Arizona
Arizona Health Facilities Authority, Phoenix
Baptist Hospital and Medical Center, 6.1%, 9/1/03 (c) 2,000,000 AAA 2,167,220
</TABLE>
The accompanying notes are an integral part of the financial statements.
9 - Scudder Medium Term Tax Free Fund
<PAGE>
<TABLE>
<CAPTION>
Principal Credit Market
Amount($) Rating(e) Value($)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Maricopa County, AZ, Unified School District #41:
Capital Appreciation Bond, Zero Coupon:
7/1/03(c) .................................... 4,500,000 AAA 3,384,990
1/1/04(c) .................................... 6,000,000 AAA 4,379,640
7/1/06(c) .................................... 7,605,000 AAA 4,854,043
Gilbert, Capital Appreciation Refunding,
General Obligation, Zero Coupon, 7/1/05 .... 1,790,000 AAA 1,205,619
Gilbert, Zero Coupon, 1/1/06 (c) .............. 2,925,000 AAA 1,914,091
Maricopa County, AZ, School District #28,
Kyrene Elementary, Series B, Zero Coupon:
1/1/03(c) .................................... 4,150,000 AAA 3,196,621
7/1/03(c) .................................... 2,000,000 AAA 1,504,440
Arkansas
Rogers, AR, Sales & Use Tax Revenue, Series
1996, 5.35%, 11/1/11 .......................... 2,500,000 AA 2,512,200
California
California Department of Water Resources,
Central Valley Project, Revenue
Water System, Series 1995 O, 7%, 12/1/06 ...... 6,095,000 AA 7,147,850
California Health Facilities Finance Authority
Revenue Bond, Hospital, Summit
Medical Center, Series A, 6%, 5/1/06 .......... 3,150,000 AAA 3,435,957
California Housing Finance Agency, Multi-Unit
Rental Housing Revenue, Series A, 7.25%, 8/1/98 2,270,000 A 2,346,794
Foothill Eastern Transportation Corridor Agency,
CA, Toll Road Revenue, Senior Lien,
Series A, Zero Coupon, 1/1/09 ................. 7,275,000 BBB 4,869,303
Long Beach, CA, Aquarium of the Pacific
Project, 5.75%, 7/1/05 ........................ 1,300,000 BBB 1,319,136
Orange County, CA, Local Transportation
Authority, Sales Tax Revenue, Measure M,
5.1%, 2/15/01 (c)* ............................ 5,100,000 AAA 5,057,109
Orange County, CA, Special Financing Authority,
Teeter Plan Revenue, Series C, Mandatory Put
11/1/99 at 100, 6.15% 11/1/14 ................. 2,600,000 A 2,686,372
Southern California Public Power Authority
Power Project Revenue, Palo Verde Project,
Series 1996A, 6%, 7/1/07 (c) (g) .............. 3,000,000 AAA 3,290,820
Colorado
Castle Rock Ranch, CO, Public Improvements
Authority, Public Facilities Revenue,
Series 1996:
6.1%, 12/1/05 ................................ 2,780,000 AA 2,952,610
6.5%, 12/1/09 ................................ 3,525,000 AA 3,829,067
Colorado Health Facilities Authority, Hospital
Revenue, Rocky Mountain Adventist
Healthcare Project, 6%, 2/1/98 ................ 1,800,000 BBB 1,817,982
</TABLE>
The accompanying notes are an integral part of the financial statements.
10 - Scudder Medium Term Tax Free Fund
<PAGE>
<TABLE>
<CAPTION>
Principal Credit Market
Amount($) Rating(e) Value($)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Connecticut
Bristol, CT, Resource Recovery, Ogden
Martin System, 6.125%, 7/1/03 ...................... 10,635,000 A 11,284,479
Connecticut Development Authority, Airport
Facilities, Windsor Locks Hotel,
Series A, prerefunded 10/1/97, 5.8%, 10/1/25 ....... 5,610,000 AA 5,628,064
Connecticut Health & Educational Facilities
Authority Windham Community Memorial Hospital,
Series 1996 C, 5.75%, 7/1/11 ....................... 3,700,000 BBB 3,616,972
District Of Columbia
District of Columbia, Certificate of Participation,
Series 1993, 6.875%, 1/1/03 ........................ 2,500,000 BB 2,613,125
District of Columbia, General Obligation:
Series A, 5.625%, 6/1/02(c) ........................ 8,360,000 AAA 8,688,381
Series A, 5.8%, 6/1/04(c) .......................... 6,950,000 AAA 7,304,728
Series D, 4.7%, 12/1/99(c) ......................... 5,435,000 AAA 5,476,795
1993 Series A-1, 4.95%, 6/1/05(c) .................. 3,940,000 AAA 3,920,458
Refunding Series B:
5.3%, 6/1/05(c) ................................... 8,000,000 AAA 8,155,040
Zero Coupon, 6/1/01(c) ............................ 7,100,000 AAA 5,904,502
Refunding, 1993 Series A:
5.875%, 6/1/05(c) ................................. 3,650,000 AAA 3,856,590
4.85%, 6/1/04(c) .................................. 2,000,000 AAA 1,983,480
District of Columbia, Redevelopment Land
Agency, DC Sports Arena, Special Tax,
Series 1996, 5.625%, 11/1/10 ....................... 2,830,000 BBB 2,781,607
Florida
Dade County, FL, Guaranteed Entitlement
Revenue, Prerefunded 2/1/06, Zero Coupon:
8/1/14(c) ......................................... 4,000,000 AAA 1,440,440
8/1/18(c) ......................................... 6,000,000 AAA 1,570,920
Orange County, FL, Health Facilities Authority
Revenue HSP - Orlando Regional Healthcare,
Series 1996A, 6%, 10/1/03(c) ....................... 3,000,000 AAA 3,220,680
Georgia
Georgia, General Obligation, Series B, 6.75%, 9/1/10 . 5,370,000 AAA 6,239,886
Hawaii
Hawaii, General Obligation, Unlimited Tax,
Series 1993 CI, 4.75%, 11/1/08 ..................... 7,050,000 AA 6,862,752
Illinois
Alton, IL, Health Facilities Revenue, 6.7%, 2/15/00(c) 1,550,000 AAA 1,596,965
Berwyn, IL, Hospital Revenue, MacNeal Memorial
Hospital, Series 1995, 5.25%, 6/1/04(c) ............ 3,935,000 AAA 4,012,520
</TABLE>
The accompanying notes are an integral part of the financial statements.
11 - Scudder Medium Term Tax Free Fund
<PAGE>
<TABLE>
<CAPTION>
Principal Credit Market
Amount($) Rating(e) Value($)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Hoffman Estates, IL, Tax Incremental Revenue:
Capital Appreciation, Junior Lien, Hoffman
Estates, Zero Coupon, Revenue Bond, 5/15/04 .. 2,450,000 A 1,731,856
Zero Coupon, 5/15/06 ............................ 8,500,000 A 5,361,630
Illinois Development Finance Authority Refunding
Revenue, Commonwealth Edison, Series 1994, 5.3%,
1/15/04(c) ...................................... 7,500,000 AAA 7,680,300
Illinois Educational Facilities Authority Revenue,
Loyola University, Revenue Refunding, 1991 Series
A, Zero Coupon, 7/1/02(c) ....................... 2,130,000 AAA 1,675,139
Illinois, General Obligation:
6.7%, 6/1/03 .................................... 3,640,000 AA 3,927,851
4.6%, 12/1/05 ................................... 5,000,000 AA 4,889,250
Illinois Health Facilities Authority:
Evangelical Hospitals, Series B, 6.1%, 4/15/01(c) 1,240,000 AAA 1,312,342
Memorial Hospital, Sisters Services, Series A,
6%, 6/1/99(c) ................................... 2,500,000 AAA 2,580,650
Sisters Services, Series C:
5.875%, 6/1/98(c) ............................. 2,400,000 AAA 2,441,736
6.1%, 6/1/00(c) ............................... 1,500,000 AAA 1,569,510
6.2%, 6/1/01(c) ............................... 1,900,000 AAA 2,016,204
Kendall, Kane and Will Counties, IL, School
District, Zero Coupon, 3/1/03(c) ................ 1,345,000 AAA 1,021,622
Macon and Decatur County, IL, Public Building
Commission, Certificate of Participation, General
Obligation, 6.3%, 1/1/00(c) ..................... 1,320,000 AAA 1,381,367
Metropolitan Pier and Exposition Authority of
Illinois, McCormick Place Expansion Project,
Coupon Receipts, Zero Coupon, 6/15/04(c) ........ 14,400,000 AAA 10,205,280
Rosemont, IL:
Tax Increment-2, Secondary, Series B, Zero
Coupon, 12/1/02(c) ............................ 2,785,000 AAA 2,146,873
Tax Increment-3, Secondary, Series C, Zero
Coupon, 12/1/02(c) ............................ 3,345,000 AAA 2,578,560
Indiana
Indiana Housing Finance Authority, Single
Family Mortgage Revenue, Series 1995 C-1,
5.25%, 7/1/12 ................................... 2,110,000 AAA 2,137,198
Indianapolis, IN, Resource Recovery Revenue,
Ogden Martin Systems Inc. Project,
6.75%, 12/1/07(c) ............................... 6,000,000 AAA 6,870,660
Madison County, IN, Hospital Authority, Holy
Cross Health System, 6.7%, 12/1/02(c) ........... 1,385,000 AAA 1,525,051
Iowa
Iowa Certificate of Participation, 1992
Series A, 6.25%, 7/1/02(c) ...................... 5,000,000 AAA 5,355,750
</TABLE>
The accompanying notes are an integral part of the financial statements.
12 - Scudder Medium Term Tax Free Fund
<PAGE>
<TABLE>
<CAPTION>
Principal Credit Market
Amount($) Rating(e) Value($)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Kansas
Kansas City, KS, Utility System Revenue,
Zero Coupon:
3/1/03(c) .................................... 3,850,000 AAA 2,938,936
3/1/03(c) .................................... 2,750,000 AAA 2,106,225
Louisiana
Jefferson Parish, LA School Board Sales &
Use Tax Revenue, Escrowed to Maturity,
Series 1986A, 7.35%, 2/1/03** ................... 5,055,000 A 5,596,896
Louisiana Housing Finance Agency, Mortgage
Revenue Refunding, Single Family,
Series 1995 C-1, 5.125%, 12/1/10(c) ............ 2,435,000 AAA 2,447,443
Orleans, Levee District, LA, Levee Improvement
Bonds, Series 1986, 5.95%, 11/1/14(c) .......... 1,930,000 AAA 2,008,474
Massachusetts
Massachusetts General Obligation:
Refunding, Series B, 6.375%, 8/1/02 ............. 2,150,000 A 2,326,279
Series A, 6.4%, 8/1/03 .......................... 1,000,000 A 1,091,240
Massachusetts Health & Educational Facilities
Authority, St. Joseph's Hospital, Series C,
Prerefunded 10/1/99, 9.5%, 10/1/20(d) .......... 2,780,000 AAA 3,098,393
Massachusetts Housing Finance Agency, 1992
Series C, FNMA Collateralized:
6.25%, 5/15/02 ................................ 2,000,000 AAA 2,105,960
6.25%, 11/15/02 ............................... 3,420,000 AAA 3,617,437
Massachusetts Industrial Finance Agency:
Sturdy Memorial Hospital, 7.9%, 6/1/09 .......... 1,735,000 BBB 1,848,226
Resource Recovery, North Andover Solid Waste,
Series A, 6.15%, 7/1/02 ....................... 3,250,000 BBB 3,366,123
Massachusetts Municipal Wholesale Electric Co.,
Power Supply System Revenue, Series A,
6.625%, 7/1/03 .................................. 3,165,000 A 3,420,384
Massachusetts Water Resource Authority,
Series A, 7.25%, 4/1/01 ......................... 1,000,000 A 1,082,080
New England Education Loan Marketing Corp.,
Massachusetts Student Loan Revenue
Refunding, Issue E, 5%, 7/1/99 .................. 3,000,000 A 3,027,270
Michigan
Greater Detroit, MI, Resource Recovery Authority,
Revenue Refunding Bond, Series B:
6.25%, 12/13/07 ............................... 2,735,000 AAA 3,008,281
6.25%, 12/13/08 ............................... 5,625,000 AAA 6,170,456
Michigan Municipal Bond Authority, Local Government
Loan Program, School Improvement, Zero Coupon,
6/15/06 (c) ..................................... 4,750,000 AAA 3,049,168
Michigan Hospital Finance Authority, Hospital
Revenue, Sinai Hospital, Series 1995, 6%, 1/1/08 2,000,000 BBB 2,024,540
</TABLE>
The accompanying notes are an integral part of the financial statements.
13 - Scudder Medium Term Tax Free Fund
<PAGE>
<TABLE>
<CAPTION>
Principal Credit Market
Amount($) Rating(e) Value($)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Romulus Township, MI, School District, Series II,
Zero Coupon, Prerefunded 5/1/07, 5/1/22(c)(d) .... 12,400,000 AAA 2,772,764
Mississippi
Mississippi Higher Education Assistance Corp.,
Student Loan Revenue, 1992 Series A, 6.2%, 1/1/02 1,200,000 A 1,253,496
Nevada
Clark County, NV, School District, General
Obligation LTD, Building and Renovation,
Series B, 6.5%, 6/15/07 ......................... 7,000,000 AAA 7,844,760
Nevada Housing Division, Single Family Mortgage
Revenue, Series R, 5.95%, 10/1/11 ............... 2,755,000 AA 2,828,614
New Hampshire
New Hampshire Higher Education & Health Facilities
Authority, Hospital Revenue, Frisbie Memorial
Hospital, Series 1993, 5.25%, 10/1/99 ........... 2,025,000 BBB 2,039,661
New Jersey
New Jersey Economic Development Authority,
Series A, 7%, 7/1/04(c) ......................... 2,500,000 AAA 2,827,000
New Jersey, General Obligation Unlimited Refunded
Series E, 6%, 7/15/03 ........................... 5,750,000 AA 6,198,558
New York
Metropolitan Transportation Authority of New York:
Commuter Facilities Revenue:
6.75%, 7/1/00 .................................. 1,200,000 BBB 1,272,840
6.9%, 7/1/01 ................................... 1,280,000 BBB 1,380,608
Transit Facilities Revenue:
Series M, 5.5%, 7/1/08(c) ...................... 3,500,000 AAA 3,631,705
Service Contract, 6.75%, 7/1/00 ................ 2,270,000 BBB 2,407,789
Service Contract, Series O, 5.75%, 7/1/07 ...... 1,975,000 BBB 2,049,517
Service Contract Lease Revenues, 6.9%, 7/1/01 .. 2,415,000 BBB 2,604,819
New York City, General Obligation:
7.25%, 8/15/07 .................................. 2,800,000 A 3,196,900
Series A, 6%, 8/1/05(c) ......................... 2,560,000 AAA 2,751,334
Series A, 7%, 8/1/04 ............................ 7,650,000 A 8,476,124
Series B, 6.75%, 8/15/03 ........................ 7,000,000 A 7,627,410
Series B, 6.6%, 10/1/03 ......................... 10,200,000 A 10,913,694
Series C, 6.3%, 8/1/03(c) ....................... 50,000 AAA 54,172
Series D, 7.875%, 8/1/97 ........................ 1,330,000 A 1,334,349
Series D, ETM, 7.875%, 8/1/97** ................. 1,225,000 AAA 1,229,165
Series 1992 B, 6.4%, 10/1/02 .................... 4,905,000 A 5,236,970
</TABLE>
The accompanying notes are an integral part of the financial statements.
14 - Scudder Medium Term Tax Free Fund
<PAGE>
<TABLE>
<CAPTION>
Principal Credit Market
Amount($) Rating(e) Value($)
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Series 1995 E, 6.6%, 8/1/04 ..................... 2,500,000 A 2,715,900
Series 1996 A, 7%, 8/1/06 ....................... 2,000,000 BBB 2,237,960
Series 1996 G, 6.75%, 2/1/09 .................... 8,000,000 A 8,848,000
Unlimited Prerefunded, Series H, 6.9%, 2/1/01(d) 505,000 AAA 548,006
New York State Dormitory Authority:
State University, 6.8%, 5/15/00(c) .............. 1,915,000 AAA 2,045,182
City University System, Consolidated Revenue
Lease, Series A:
5.5%, 7/1/03 ................................... 8,000,000 BBB 8,238,640
5.5%, 7/1/03(c) ................................ 1,250,000 AAA 1,310,425
College and University Pooled Capital Program,
7.8%, 12/1/05(c) .............................. 1,045,000 AAA 1,118,369
Cons City University System, 5.75%, 7/1/06(c) ... 1,750,000 AAA 1,866,428
New York State Energy Research and Development
Authority, Pollution Control Revenue, Electric
and Gas, 5.9%, 12/1/06(c) ....................... 5,200,000 AAA 5,604,612
New York State Medical Care Facilities, Finance
Agency Revenue, Mount Sinai Hospital, Series
1983, 5.95%, 8/15/09 ............................ 6,905,000 AAA 7,160,485
New York State Thruway Authority, Special
Obligation, Zero Coupon, 1/1/02 ................. 3,155,000 BBB 2,498,381
New York State, Urban Development Corporation
Revenue Correctional Facilities, Series A:
5.3%, 1/1/05(c) ................................ 7,000,000 AAA 7,213,920
5.4%, 1/1/06(c) ................................ 3,500,000 AAA 3,630,340
North Carolina
North Carolina Municipal Power Agency #1 Catawba
Electric Revenue:
Series 1992, 5.9%, 1/1/03(c) .................... 2,550,000 AAA 2,712,104
Series 1993, 4.1%, 1/1/05(c) .................... 3,000,000 AAA 2,824,920
North Dakota
Bismarck, ND, Hospital Revenue, St. Alexius Medical
Center, Series 1991, Zero Coupon, 5/1/00(c) ..... 2,850,000 AAA 2,507,886
Grand Forks, ND, Health Facilities, United Hospital
Obligation Group, Series A, 6%, 12/1/02(c) ...... 1,160,000 AAA 1,234,785
Ohio
Hamilton County, OH, Health System Revenue,
Franciscan Sisters of the Poor Health System,
Providence Hospital, Series 1992, 6.375%, 7/1/04 4,495,000 BBB 4,725,818
Pennsylvania
Armstrong County, PA, Hospital Authority, St ......
Frances Medical Center, Series A, 6.2%, 6/1/03(c) 3,090,000 AAA 3,326,941
Delaware County, PA, Industrial Development
Authority, Resource Recovery Revenue,
Series A, Refunding Bond, 6.5%, 1/1/08 .......... 3,000,000 A 3,229,500
</TABLE>
The accompanying notes are an integral part of the financial statements.
15 - Scudder Medium Term Tax Free Fund
<PAGE>
<TABLE>
<CAPTION>
Principal Credit Market
Amount($) Rating(e) Value($)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Montgomery County, PA, Redevelopment Authority,
Multi Family Housing Revenue Refunding, KBF
Associates, LP Project, 6%, 7/1/04 .................. 2,685,000 BBB 2,698,694
Philadelphia, PA, General Obligation, Refunding
Revenue, Series A, 11.5%, 8/1/99(c) ................. 1,000,000 AAA 1,142,220
Schuykill County, PA, Redevelopment Authority,
Lease Rental, Series A, 6.55%, 6/1/00(c) ............ 1,105,000 AAA 1,171,554
Somerset County, PA, General Authority, Commonwealth
Lease Revenue, ETM, 6.45%, 10/15/00(c)** ............ 2,000,000 AAA 2,131,140
South Carolina
South Carolina Jobs-Economic Development Authority,
Franciscan Sisters of the Poor Health System Inc.,
St. Francis Hospital, 6.375%, 7/1/04 ................ 3,420,000 BBB 3,595,617
Sumter County, SC, Hospital Facility Revenue
Refunding, Tuomey Medical Center, 6.375%, 11/15/99(c) 1,000,000 AAA 1,049,310
South Dakota
South Dakota Student Loan Assistance Corp. Revenue,
Series A, 7%, 8/1/98 ................................ 715,000 A 728,678
Texas
Austin, TX, Combined Utility System Revenue,
Zero Coupon, 11/15/09 (c) ........................... 6,775,000 AAA 3,542,038
Brownsville, TX, Utility System Revenue Refunding,
Series 1995:
6%, 9/1/08(c) ....................................... 1,000,000 AAA 1,082,930
6%, 9/1/09(c) ....................................... 2,700,000 AAA 2,913,003
Dallas, TX, Civic Center, Senior Lien, 8.6%, 1/1/06 ... 1,115,000 A 1,121,478
Denison, Texas, Hospital Authority, Revenue Bond,
Texoma Medical Center Inc. Project, 6.125%, 8/15/12 . 1,000,000 BBB 1,010,350
Harris County, TX, Toll Road Authority, Toll Road
Revenue, Subordinate Lien, Series A, Zero Coupon:
8/15/06(c) ......................................... 3,915,000 AAA 2,470,404
8/15/07(c) ......................................... 1,050,000 AAA 626,861
Richardson, TX, Hospital Authority Revenue,
Richardson Medical Center, 6.5%, 12/1/12 ............ 1,915,000 BBB 1,965,499
San Antonio, TX, General Obligation General
Improvement, Forward, Series 1996:
6%, 8/1/07(f) ...................................... 1,000,000 AA 1,060,340
6%, 8/1/08(f) ...................................... 2,150,000 AA 2,277,065
Texas Municipal Power Agency, Zero Coupon, 9/1/07(c) .. 8,385,000 AAA 4,994,609
Texas Public Finance Authority, Building Revenue
Refunding, Zero Coupon, 2/1/09(c) ................... 5,860,000 AAA 3,192,997
</TABLE>
The accompanying notes are an integral part of the financial statements.
16 - Scudder Medium Term Tax Free Fund
<PAGE>
<TABLE>
<CAPTION>
Principal Credit Market
Amount($) Rating(e) Value($)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Utah
Intermountain Power Agency, UT, Power Supply Revenue,
Series B, Zero Coupon:
7/1/01(c) ............................................ 10,495,000 AAA 8,693,743
7/1/02(c) ............................................ 2,500,000 AAA 1,966,125
Intermountain Power Agency, UT, Power Supply Revenue,
Series B, 6.25%, 7/1/06 .............................. 8,000,000 AAA 8,778,640
Salt Lake County, UT, Water Conservation District,
Series A, Zero Coupon, 10/1/03(c) .................... 3,200,000 AAA 2,370,016
Virgin Islands
Virgin Islands, General Obligation, Public Finance
Authority Revenue, Matching Fund Loan Notes, Series A:
6.7%, 10/1/99 ....................................... 3,170,000 NR 3,292,045
6.8%, 10/1/00 ....................................... 1,035,000 NR 1,089,493
Washington
Clark County, WA, Public Utility District #1,
Generating System Revenue Bonds, 6%, 1/1/07(c)(g) .... 12,150,000 AAA 13,107,785
King County, WA, Public Hospital District, Hospital
Facility, Revenue Refunding Bond, Valley Medical
Center, 6%, 9/1/09 ................................... 1,940,000 AAA 2,065,867
Snohomish County, WA, Public Utility District #1,
1991 Series B, 6.4%, 1/1/00 .......................... 2,000,000 A 2,093,820
Washington Public Power Supply System, Nuclear
Project #1, Refunding Revenue:
6%, 7/1/05 ........................................... 2,950,000 AAA 3,160,689
Series B, 5.15%, 7/1/02 .............................. 5,275,000 AA 5,355,075
Series B, 5.25%, 7/1/03 .............................. 5,555,000 AA 5,652,157
Washington Public Power Supply System Nuclear
Project #2, Refunding Revenue:
Series 1990c, 7.5%, 7/1/03(b) ........................ 5,800,000 AA 6,379,884
Series A, 6.3%, 7/1/01 ............................... 6,000,000 AA 6,344,340
Series A, 4.9%, 7/1/05 ............................... 4,330,000 AA 4,261,932
Series A, 5.8%, 7/1/07 ............................... 2,120,000 AA 2,214,870
Series A, 5.25%, 7/1/08 .............................. 3,000,000 AA 2,980,200
Series B, 5.15%, 7/1/02 .............................. 6,085,000 AA 6,177,370
Washington Public Power Supply System, Nuclear
Project #3, Refunding Revenue:
Series B, 7.15%, 7/1/01 .............................. 1,310,000 AA 1,405,381
Series B, 5.15%, 7/1/02 .............................. 3,165,000 AA 3,213,045
Series B, 5.25%, 7/1/03 .............................. 3,000,000 AA 3,052,470
Series B, Zero Coupon, 7/1/04 (c) .................... 8,000,000 AAA 5,657,200
Washington Housing Finance, Series A, 7.1%, 12/1/17 .... 1,600,000 AAA 1,639,072
</TABLE>
The accompanying notes are an integral part of the financial statements.
17 - Scudder Medium Term Tax Free Fund
<PAGE>
<TABLE>
<CAPTION>
Principal Credit Market
Amount($) Rating(e) Value($)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
West Virginia
South Charleston, WV, Pollution Control Revenue,
Union Carbide, 7.625%, 8/1/05 .......................... 2,000,000 BBB 2,308,860
Wisconsin
Wisconsin Health & Education Facilities Authority:
Columbia Hospital Inc., 6.125%, 11/15/01(c) ............ 1,000,000 AAA 1,062,600
Mercy Health System Corporation:
6%, 8/15/05(c) ........................................ 1,400,000 AAA 1,504,048
6.125%, 8/15/06(c) .................................... 1,480,000 AAA 1,606,348
6.25%, 8/15/07(c) ..................................... 1,000,000 AAA 1,096,624
Wheaton Franciscan Hospital, 6%, 8/15/02(c) ............ 1,000,000 AAA 1,062,740
Wheaton Franciscan Services:
5.8%, 8/15/04(c) ...................................... 1,675,000 AAA 1,771,865
6%, 8/15/07(c) ........................................ 2,000,000 AAA 2,165,520
- ----------------------------------------------------------------------------------------------------------
Total Long-Term Municipal Investments (Cost $593,740,095) 619,257,094
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
Total Investment Portfolio -- 100.0% (Cost $599,325,095)(a) 624,842,094
- ----------------------------------------------------------------------------------------------------------
</TABLE>
(a) The cost for federal income tax purposes was $599,325,095. At June 30,
1997, net unrealized appreciation based on tax cost for all securities was
$25,516,999. This consisted of aggregate gross unrealized appreciation for
all securities in which there was an excess of market value over tax cost
of $25,598,904 and aggregate gross unrealized depreciation for all
investment securities in which there was an excess of tax cost over market
value of $81,905.
(b) At June 30, 1997 this security, in part, has been pledged to cover initial
margin requirements for open futures contracts.
At June 30, 1997, open futures contracts purchased were as follows (Note
A):
Aggregate
Futures Expiration Contracts Face Value($) Market Value($)
------- ---------- --------- ------------- ---------------
5 Year U.S.
Treasury Note Sept. 1997 105 11,026,595 11,118,516
----------
Total net unrealized appreciation on open futures
contracts purchased ................................ 91,921
==========
(c) Bond is insured by one of these companies: AMBAC, Capital Guaranty, FGIC,
FSA, or MBIA.
(d) Prerefunded: Bonds which are prerefunded are collateralized by U.S.
Treasury securities which are held in escrow and are used to pay principal
and interest on tax-exempt issue and to retire the bonds in full at the
earliest refunding date.
(e) All of the securities held have been determined by the Adviser to be of
appropriate credit quality as required by the Fund's investment
objectives. Credit ratings are either Standard & Poor's Rating Group,
Moody's Investors Service, Inc. or Fitch Investors Service, Inc. Unrated
securities (NR) have been determined by the Adviser to be of comparable
quality to rated eligible securities.
The accompanying notes are an integral part of the financial statements.
18 - Scudder Medium Term Tax Free Fund
<PAGE>
- --------------------------------------------------------------------------------
(f) When-issued or forward delivery securities (See Note A in Notes to
Financial Statements).
(g) At June 30, 1997, these securities, in part or in whole, have been
segregated to cover when-issued or forward delivery securities.
* Floating rate and monthly, weekly, or daily demand notes are securities
whose yields vary with a designated market index or market rate, such as
the coupon-equivalent of the Treasury bill rate. Variable rate demand
notes are securities whose yields are periodically reset at levels that
are generally comparable to tax-exempt commercial paper. These securities
are payable on demand within seven calendar days and normally incorporate
an irrevocable letter of credit or line of credit from a major bank. These
notes are carried, for purposes of calculating average weighted maturity,
at the longer of the period remaining until the next rate change or to the
extent of the demand period.
** ETM: Bonds bearing the description ETM (escrowed to maturity) are
collateralized by U.S. Treasury securities which are held in escrow by a
trustee and used to pay principal and interest on bonds so designated.
The accompanying notes are an integral part of the financial statements.
19 - Scudder Medium Term Tax Free Fund
<PAGE>
Financial Statements
Statement of Assets and Liabilities
as of June 30, 1997 (Unaudited)
Assets
- --------------------------------------------------------------------------------
Investments, at market (identified cost $599,325,095) $624,842,094
Cash ................................................ 68,125
Interest receivable ................................. 9,173,530
Receivable for investments sold ..................... 835,000
Receivable for Fund shares sold ..................... 472,472
Other assets ........................................ 16,665
------------
Total assets ........................................ 635,407,886
Liabilities
- --------------------------------------------------------------------------------
Dividends payable ................................... 925,621
Payable for Fund shares redeemed .................... 869,983
Payable for when issued & forward delivery securities 3,276,166
Daily variation margin on open futures contracts .... 26,250
Accrued management fee .............................. 304,502
Other payables and accrued expenses ................. 122,112
------------
Total liabilities ................................... 5,524,634
----------------------------------------------------------------------------
Net assets, at market value $629,883,252
----------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
Net assets consist of:
Net unrealized appreciation (depreciation) on:
Investments ....................................... 25,516,999
Futures ........................................... 91,921
Accumulated net realized gain ....................... 1,362,535
Paid-in capital ..................................... 602,911,797
----------------------------------------------------------------------------
Net assets, at market value $629,883,252
----------------------------------------------------------------------------
Net Asset Value
- --------------------------------------------------------------------------------
Net Asset Value, offering and redemption price
per share ($629,883,252/56,378,709 outstanding
shares of beneficial interest, $.01 par value, ------------
unlimited number of shares authorized) ............ $ 11.17
------------
The accompanying notes are an integral part of the financial statements.
20 - Scudder Medium Term Tax Free Fund
<PAGE>
Statement of Operations
six months ended June 30, 1997 (Unaudited)
Investment Income
- --------------------------------------------------------------------------------
Income:
Interest ................................................ $ 17,381,463
------------
Expenses:
Management fee .......................................... 1,845,577
Services to shareholders ................................ 276,032
Custodian and accounting fees ........................... 98,640
Trustees' fees and expenses ............................. 21,456
Reports to shareholders ................................. 49,192
Auditing ................................................ 25,993
Registration fees ....................................... 25,528
Legal ................................................... 2,999
Other ................................................... 10,356
------------
2,355,773
---------------------------------------------------------------------------
Net investment income 15,025,690
---------------------------------------------------------------------------
Realized and unrealized gain (loss) on investment transactions
- --------------------------------------------------------------------------------
Net realized gain on:
Investments ............................................. 1,645,547
Futures ................................................. (272,318)
------------
1,373,229
------------
Net unrealized appreciation during the period on:
Investments ............................................. 467,321
Futures ................................................. 240,627
------------
707,948
---------------------------------------------------------------------------
Net gain (loss) on investment transactions 2,081,177
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 17,106,867
---------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
21 - Scudder Medium Term Tax Free Fund
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended
June 30, Year Ended
1997 December 31,
Increase (Decrease) in Net Assets (Unaudited) 1996
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income ................................. $ 15,025,690 $ 32,089,048
Net realized gain from investments .................... 1,373,229 1,647,772
Net unrealized appreciation (depreciation) on
investments during the period ....................... 707,948 (7,456,056)
------------- -------------
Net increase in net assets resulting from operations .. 17,106,867 26,280,764
------------- -------------
Distributions to shareholders:
From net investment income ............................ (15,025,690) (32,089,048)
------------- -------------
From net realized gains from investment transactions .. (1,149,688) (1,232,175)
------------- -------------
Fund share transactions:
Proceeds from shares sold ............................. 59,503,759 100,528,576
Net asset value of shares issued to shareholders in
reinvestment of distributions ....................... 10,122,625 20,151,729
Cost of shares redeemed ............................... (91,178,702) (174,745,339)
------------- -------------
Net decrease in net assets from Fund share transactions (21,552,318) (54,065,034)
------------- -------------
Increase (decrease) in net assets ..................... (20,620,829) (61,105,493)
Net assets at beginning of period ..................... 650,504,081 711,609,574
------------- -------------
Net assets at end of period ........................... $ 629,883,252 $ 650,504,081
------------- -------------
Other Information
- --------------------------------------------------------------------------------------------------------
Increase (decrease) in Fund shares
Shares outstanding at beginning of period ............. 58,325,377 63,217,191
------------- -------------
Shares sold ........................................... 5,355,790 9,072,101
Shares issued to shareholders in reinvestment of ...... 912,344 1,819,637
distributions
Shares redeemed ....................................... (8,214,802) (15,783,552)
------------- -------------
Net decrease in Fund shares ........................... (1,946,668) (4,891,814)
------------- -------------
Shares outstanding at end of period ................... 56,378,709 58,325,377
------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
22 - Scudder Medium Term Tax Free Fund
<PAGE>
Financial Highlights
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
<TABLE>
<CAPTION>
Six Months
Ended
June 30,
1997 Years Ended December 31,
(Unaudited) 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning ------------------------------------------------------------------------------------------
of period ................. $11.15 $11.26 $10.39 $11.36 $10.86 $10.62 $10.11 $10.04 $10.02 $10.07 $10.34
------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income ....... .26 .53 .54 .53 .60 .65 .67 .54 .56 .54 .54
Net realized and unrealized
gain (loss) on investments. .04 (.09) .92 (.92) .56 .27 .52 .07 .02 (.05) (.22)
Total from investment ------------------------------------------------------------------------------------------
operations ................ .30 .44 1.46 (.39) 1.16 .92 1.19 .61 .58 .49 .32
------------------------------------------------------------------------------------------
Less distributions:
From net investment income .. (.26) (.53) (.54) (.53) (.60) (.65) (.67) (.54) (.56) (.54) (.54)
From net realized gains on
investments ............... (.02) (.02) (.05) (.05) (.06) (.03) (.01) -- -- -- (.05)
------------------------------------------------------------------------------------------
Total distributions ......... (.28) (.55) (.59) (.58) (.66) (.68) (.68) (.54) (.56) (.54) (.59)
------------------------------------------------------------------------------------------
Net asset value, end of ------------------------------------------------------------------------------------------
period .................... $11.17 $11.15 $11.26 $10.39 $11.36 $10.86 $10.62 $10.11 $10.04 $10.02 $10.07
- -------------------------------------------------------------------------------------------------------------------------
Total Return(%)(a) .......... 2.75** 4.02 14.32 (3.50) 10.94 8.93 12.13 6.29 6.00 4.92 3.23
Ratios and Supplemental Data
Net assets, end of period
($ millions) .............. 630 651 712 701 1,017 661 268 27 54 99 125
Ratio of operating expenses
net, to average daily net
assets(%) ................. .74* .72 .70 .63 .14 -- -- .97 .91 .79 .80
Ratio of operating expenses
before expense reductions,
to average daily net assets .74* .72 .72 .71 .75 .80 .88 1.00 .91 .79 .80
Ratio of net investment
income to average daily
net assets(%) ............. 4.75* 4.75 4.92 4.94 5.35 6.07 6.44 5.37 5.62 5.05 5.37
Portfolio turnover rate(%) .. 17.0* 14.1 36.1 33.8 37.3 22.4 14.0 116.9 15.7 31.2 32.6
</TABLE>
On November 1, 1990, the Fund adopted its present name and objective. Prior to
that date, the Fund was known as the 1990 Portfolio of the Scudder Tax Free
Target Fund and its objective was to provide high tax-free income and current
liquidity. Financial information for each of the four years in the period ended
December 31, 1990 should not be considered representative of the present Fund.
(a) Total returns may have been lower had certain expenses not been reduced.
* Annualized
** Not Annualized
23 - Scudder Medium Term Tax Free Fund
<PAGE>
Notes to Financial Statements
A. Significant Accounting Policies
Scudder Medium Term Tax Free Fund (the "Fund") is a diversified series of
Scudder Tax Free Trust, a Massachusetts business trust (the "Trust"), which is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company. The Fund's financial statements are prepared in
accordance with generally accepted accounting principles which require the use
of management estimates. The policies described below are followed consistently
by the Fund in the preparation of its financial statements.
Security Valuation. Portfolio debt securities with remaining maturities greater
than sixty days are valued by pricing agents approved by the Officers of the
Fund, which prices reflect broker/dealer-supplied valuations and electronic data
processing techniques. If the pricing agents are unable to provide such
quotations, the most recent bid quotation supplied by a bona fide market maker
shall be used. Short-term investments having a maturity of sixty days or less
are valued at amortized cost. All other debt securities are valued at their fair
value as determined in good faith by the Valuation Committee of the Board of
Trustees.
When-issued and Forward Delivery Securities. The Fund may purchase securities on
a when-issued or forward delivery basis, for payment and delivery at a later
date. The price of such securities, which may be expressed in yield terms, is
fixed at the time the commitment to purchase is made, but delivery and payment
take place at a later time. At the time the Fund makes the commitment to
purchase a security on a when-issued or forward delivery basis, it will record
the transaction and reflect the value of the security in determining its net
asset value. During the period between purchase and settlement, no payment is
made by the Fund to the issuer and no interest accrues to the Fund. At the time
of settlement, the market value of the security may be more or less than the
purchase price.
Futures Contracts. A futures contract is an agreement between a buyer or seller
and an established futures exchange or its clearinghouse in which the buyer or
seller agrees to take or make a delivery of a specific amount of an item at a
specified price on a specific date (settlement date). During the period, the
Fund purchased interest rate futures to manage the duration of the portfolio, as
a temporary substitute for purchasing selected investments, and to lock in the
purchase price of a security which it expects to purchase in the near future.
Upon entering into a futures contract, the Fund is required to deposit with a
financial intermediary an amount ("initial margin") equal to a certain
percentage of the face value indicated in the futures contract. Subsequent
payments ("variation margin") are made or received by the Fund each day,
dependent on the daily fluctuations in the value of the underlying security, and
are recorded for financial reporting purposes as unrealized gains or losses by
the Fund. When entering into a closing transaction, the Fund will realize a gain
or loss equal to the difference between the value of the futures contract to
sell and the futures contract to buy. Futures contracts are valued at the most
recent settlement price.
Certain risks may arise upon entering into futures contracts including the risk
that an illiquid secondary market will limit the Fund's ability to close out a
futures contract prior to the settlement date and that a change in the value of
a futures contract may not correlate exactly with changes in the value of the
securities hedged. When utilizing futures contracts to hedge the Fund gives up
the opportunity to profit from favorable price movements in the hedged positions
during the term of the contract.
Amortization and Accretion. All premiums and original issue discounts are
amortized/accreted for both tax and financial reporting purposes.
24 - Scudder Medium Term Tax Free Fund
<PAGE>
Federal Income Taxes. The Fund's policy is to comply with the requirements of
the Internal Revenue Code which are applicable to regulated investment companies
and to distribute all of its taxable and tax-exempt income to its shareholders.
The Fund accordingly paid no federal income taxes and no provision for federal
income taxes was required.
Distribution of Income and Gains. All of the net investment income of the Fund
is declared as a dividend to shareholders of record as of the close of business
each day and is paid to shareholders monthly. During any particular year, net
realized gains from investment transactions, in excess of available capital loss
carryforwards, would be taxable to the Fund if not distributed and, therefore,
will be distributed to shareholders. An additional distribution may be made to
the extent necessary to avoid the payment of a four percent federal excise tax.
Distributions of net realized capital gains to shareholders are recorded on
ex-dividend date.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax regulations
which may differ from generally accepted accounting principles. These
differences relate primarily to investments in futures. As a result, net
investment income and net realized gain (loss) on investment transactions for a
reporting period may differ significantly from distributions during such period.
Accordingly, the Fund may periodically make reclassifications among certain of
its capital accounts without impacting the net asset value of the Fund.
The Fund uses the specific identification method for determining realized gain
or loss on investments for both financial and federal income tax reporting
purposes.
Other. Investment transactions are accounted for on a trade date basis. Interest
income is accrued pro rata to the earlier of the call or maturity date.
B. Purchases and Sales of Securities
During the six months ended June 30, 1997, purchases and sales of municipal
securities (excluding short-term investments) aggregated $52,912,607 and
$70,451,131, respectively.
The aggregate face value of futures contracts opened and closed during the six
months ended June 30, 1997 was $22,242,642 and $22,557,097, respectively.
C. Related Parties
Under the Investment Management Agreement (the "Agreement") with Scudder,
Stevens & Clark, Inc. (the "Adviser"), the Adviser directs the investments of
the Fund in accordance with its investment objective, policies, and
restrictions. The Adviser determines the securities, instruments, and other
contracts relating to investments to be purchased, sold or entered into by the
Fund. In addition to portfolio management services, the Adviser provides certain
administrative services in accordance with the Agreement. The management fee
payable under the Agreement is equal to an annual rate of 0.60% of the first
$500,000,000 of the Fund's average daily net assets and 0.50% of such assets in
excess of $500,000,000 computed and accrued daily and payable monthly. The
Agreement provides that if the Fund's expenses, exclusive of taxes, interest,
and extraordinary expenses, exceed specified limits, such excess, up to the
amount of the management fee, will be paid by the Adviser. For the six months
ended June 30, 1997, the management fee aggregated $1,845,577 which was
equivalent to an annual effective rate of .58% of the Fund's average daily net
assets.
25 - Scudder Medium Term Tax Free Fund
<PAGE>
On June 26, 1997, the Adviser entered into an agreement with The Zurich
Insurance Company ("Zurich"), an international insurance and financial services
organization, pursuant to which Zurich will acquire a majority interest in the
Adviser, and the Adviser will form a new global investment organization by
combining with Zurich's subsidiary, Zurich Kemper Investments, Inc. and change
its name to Scudder Kemper Investments, Inc. Subject to the receipt of the
required regulatory and shareholder approvals, the transaction is expected to
close in the fourth quarter of 1997.
Scudder Service Corporation ("SSC"), a subsidiary of the Adviser, is the
transfer, dividend paying and shareholder service agent for the Fund. For the
six months ended June 30, 1997 the amount charged to the Fund by SSC amounted to
$195,176 of which $31,944 is unpaid at June 30, 1997.
Scudder Fund Accounting Corporation ("SFAC"), a subsidiary of the Adviser, is
responsible for determining the daily net asset value per share and maintaining
the portfolio and general accounting records of the Fund. For the six months
ended June 30, 1997, the amount charged to the Fund by SFAC aggregated $45,875,
of which $7,596 is unpaid at June 30, 1997.
The Fund pays each Trustee not affiliated with the Adviser $4,000 annually, plus
specified amounts for attended board and committee meetings. For the six months
ended June 30, 1997, Trustees' fees and expenses aggregated $21,456.
26 - Scudder Medium Term Tax Free Fund
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27 - Scudder Medium Term Tax Free Fund
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Officers and Trustees
David S. Lee*
President and Trustee
Dawn-Marie Driscoll
Executive Fellow, Center for
Business Ethics; President,
Driscoll Associates
Peter B. Freeman
Trustee; Corporate Director and
Trustee
Wesley W. Marple, Jr.
Trustee; Professor of Business
Administration, Northeastern
University, College of Business
Administration
Kathryn L. Quirk*
Vice President and Trustee
Jean C. Tempel
Trustee; Managing Partner,
Technology Equity Partners
Donald C. Carleton*
Vice President
Jerard K. Hartman*
Vice President
Thomas W. Joseph*
Vice President
Thomas F. McDonough*
Vice President and Secretary
Pamela A. McGrath*
Vice President and Treasurer
Edward J. O'Connell*
Vice President and Assistant
Treasurer
M. Ashton Patton*
Vice President
*Scudder, Stevens & Clark, Inc.
28 - Scudder Medium Term Tax Free Fund
<PAGE>
Investment Products and Services
The Scudder Family of Funds+++
- --------------------------------------------------------------------------------
Money Market
- ------------
Scudder U.S. Treasury Money Fund
Scudder Cash Investment Trust
Scudder Money Market Series --
Premium Shares*
Managed Shares*
Scudder Government Money Market Series --
Managed Shares*
Tax Free Money Market+
- ----------------------
Scudder Tax Free Money Fund
Scudder Tax Free Money Market Series--
Managed Shares*
Scudder California Tax Free Money Fund**
Scudder New York Tax Free Money Fund**
Tax Free+
- ---------
Scudder Limited Term Tax Free Fund
Scudder Medium Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder High Yield Tax Free Fund
Scudder California Tax Free Fund**
Scudder Massachusetts Limited Term Tax Free Fund**
Scudder Massachusetts Tax Free Fund**
Scudder New York Tax Free Fund**
Scudder Ohio Tax Free Fund**
Scudder Pennsylvania Tax Free Fund**
U.S. Income
- -----------
Scudder Short Term Bond Fund
Scudder Zero Coupon 2000 Fund
Scudder GNMA Fund
Scudder Income Fund
Scudder High Yield Bond Fund
Global Income
- -------------
Scudder Global Bond Fund
Scudder International Bond Fund
Scudder Emerging Markets Income Fund
Asset Allocation
- ----------------
Scudder Pathway Conservative Portfolio
Scudder Pathway Balanced Portfolio
Scudder Pathway Growth Portfolio
Scudder Pathway International Portfolio
U.S. Growth and Income
- ----------------------
Scudder Balanced Fund
Scudder Growth and Income Fund
U.S. Growth
- -----------
Value
Scudder Large Company Value Fund
Scudder Value Fund
Scudder Small Company Value Fund
Scudder Micro Cap Fund
Growth
Scudder Classic Growth Fund
Scudder Large Company Growth Fund
Scudder Development Fund
Scudder 21st Century Growth Fund
Global Growth
- -------------
Worldwide
Scudder Global Fund
Scudder International Growth and Income Fund
Scudder International Fund
Scudder Global Discovery Fund
Scudder Emerging Markets Growth Fund
Scudder Gold Fund
Regional
Scudder Greater Europe Growth Fund
Scudder Pacific Opportunities Fund
Scudder Latin America Fund
The Japan Fund, Inc.
Retirement Programs
- -------------------
IRA
SEP IRA
Keogh Plan
401(k), 403(b) Plans
Scudder Horizon Plan**+++ +++
(a variable annuity)
Closed-End Funds#
- --------------------------------------------------------------------------------
The Argentina Fund, Inc.
The Brazil Fund, Inc.
The Korea Fund, Inc.
The Latin America Dollar Income Fund, Inc.
Montgomery Street Income Securities, Inc.
Scudder New Asia Fund, Inc.
Scudder New Europe Fund, Inc.
Scudder Spain and Portugal Fund, Inc.
Scudder World Income Opportunities
Fund, Inc.
For complete information on any of the above Scudder funds, including management
fees and expenses, call or write for a free prospectus. Read it carefully before
you invest or send money. +++Funds within categories are listed in order from
expected least risk to most risk. +A portion of the income from the tax-free
funds may be subject to federal, state, and local taxes. *A class of shares of
the Fund. **Not available in all states. +++ +++A no-load variable annuity
contract provided by Charter National Life Insurance Company and its affiliate,
offered by Scudder's insurance agencies, 1-800-225-2470. #These funds, advised
by Scudder, Stevens & Clark, Inc., are traded on various stock exchanges.
29 - Scudder Medium Term Tax Free Fund
<PAGE>
Scudder Solutions
<TABLE>
<CAPTION>
Convenient ways to invest, quickly and reliably:
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Automatic Investment Plan QuickBuy
A convenient investment program in which you designate Lets you purchase Scudder fund shares
the purchase details and the bank account, and money is electronically, avoiding potential mailing delays;
electronically debited from that account monthly to designate a bank account and the transaction
regularly purchase fund shares and "dollar cost average" details, and money for each of your transactions is
-- buy more shares when the fund's price is lower and electronically debited from that account.
fewer when it's higher, which can reduce your average
purchase price over time.
Automatic Dividend Transfer Payroll Deduction and Direct Deposit
The most timely, reliable, and convenient way to Have all or part of your paycheck -- even government
purchase shares -- use distributions from one Scudder checks -- invested in up to four Scudder funds at
fund to purchase shares in another, automatically one time.
(accounts with identical registrations or the same
social security or tax identification number).
Dollar cost averaging involves continuous investment in securities regardless of price
fluctuations and does not assure a profit or protect against loss in declining markets.
Investors should consider their ability to continue such a plan through periods of low price
levels.
Around-the-clock electronic account service and information, including some transactions:
- ------------------------------------------------------------------------------------------------------------------------------
Scudder Automated Information Line: SAIL(TM) -- Scudder's Web Site -- http://funds.scudder.com
1-800-343-2890
Scudder Electronic Account Services: Offering
Personalized account information, the ability to account information and transactions, interactive
exchange or redeem shares, and information on other worksheets, prospectuses and applications for all
Scudder funds and services via touchtone telephone. Scudder funds, plus your current asset allocation,
whenever you need them. Scudder's Site also
provides news about Scudder funds, retirement
planning information, and more.
Retirees and those who depend on investment proceeds for living expenses can enjoy these convenient,
timely, and reliable automated withdrawal programs:
- ------------------------------------------------------------------------------------------------------------------------------
Automatic Withdrawal Plan QuickSell
You designate the bank account, determine the schedule Provides speedy access to your money by
(as frequently as once a month) and amount of the electronically crediting your redemption proceeds
redemptions, and Scudder does the rest. to the bank account you designate.
DistributionsDirect
Automatically deposits your fund distributions into the
bank account you designate within three business days
after each distribution is paid.
For more information about these services, call a Scudder representative at 1-800-225-5163
- ------------------------------------------------------------------------------------------------------------------------------
30 - Scudder Medium Term Tax Free Fund
<PAGE>
Mutual Funds and More -- Brokerage and Guidance Services:
- ------------------------------------------------------------------------------------------------------------------------------
Scudder Brokerage Services Scudder Portfolio Builder
Offers you access to a world of investments, A free service designed to help suggest ways investors like
including stocks, corporate bonds, Treasuries, plus you can diversify your portfolio among domestic and global,
over 6,000 mutual funds from at least 150 mutual as well as equity, fixed-income, and money market funds,
fund companies. And Scudder Fund Folio(SM) provides using Scudder funds.
investors with access to a marketplace of more than
500 no-load funds from well-known companies--with no Personal Counsel from Scudder(SM)
transaction fees or commissions. Scudder
shareholders can take advantage of a Scudder Developed for investors who prefer the benefits of no-load
Brokerage account already reserved for them, with Scudder funds but want ongoing professional assistance in
no minimum investment. For information about managing a portfolio. Personal Counsel(SM) is a highly
Scudder Brokerage Services, call 1-800-700-0820. customized, fee-based asset management service for
individuals investing $100,000 or more.
Fund Folio funds held less than six months will be charged a fee for redemptions. You can buy
shares directly from the fund itself or its principal underwriter or distributor without
paying this fee. Scudder Brokerage Services, Inc., 42 Longwater Drive, Norwell, MA 02061.
Member SIPC.
Personal Counsel From Scudder(SM) and Personal Counsel(SM) are service marks of and represent a
program offered by Scudder Investor Services, Inc., Adviser.
For more information about these services, call a Scudder representative at 1-800-225-5163
- ------------------------------------------------------------------------------------------------------------------------------
Additional Information on How to Contact Scudder:
- ------------------------------------------------------------------------------------------------------------------------------
For existing account services and transactions Please address all written correspondence to
Scudder Investor Relations -- 1-800-225-5163 The Scudder Funds
P.O. Box 2291
For establishing 401(k) and 403(b) plans Boston, Massachusetts
Scudder Defined Contribution Services -- 02107-2291
1-800-323-6105
Or Stop by a Scudder Investor Center
For information about The Scudder Funds, including Many shareholders enjoy the personal, one-on-one service of
additional applications and prospectuses, or for the Scudder Investor Centers. Check for an Investor Center near
answers to investment questions you -- they can be found in the following cities:
Scudder Investor Relations -- 1-800-225-2470 Boca Raton Chicago San Francisco
[email protected] Boston New York
- ------------------------------------------------------------------------------------------------------------------------------
New From Scudder: Scudder International Growth and Income Fund
Scudder International Growth and Income Fund takes a yield-oriented approach to investing in international equities. The
Fund seeks to provide long-term growth of capital plus current income. Investors who desire international exposure but
who wish to take a more conservative approach may appreciate the Fund's emphasis on the dividend paying stocks of
well-established companies outside the United States.
- ------------------------------------------------------------------------------------------------------------------------------
The share price of Scudder International Growth and Income Fund will fluctuate. International investing involves special
risks including currency fluctuation and political instability. Contact Scudder Investor Services, Inc., Distributor,
for a prospectus which contains more complete information, including management fees and other expenses. Please read it
carefully before you invest or send money.
</TABLE>
31 - Scudder Medium Term Tax Free Fund
<PAGE>
Celebrating Over 75 Years of Serving Investors
Established in 1919 by Theodore Scudder, Sidney Stevens, and F. Haven Clark,
Scudder, Stevens & Clark was the first independent investment counsel firm in
the United States. Since its birth, Scudder's pioneering spirit and commitment
to professional long-term investment management have helped shape the investment
industry. In 1928, we introduced the nation's first no-load mutual fund. Today
we offer over 40 pure no load(TM) funds, including the first international
mutual fund offered to U.S. investors.
Over the years, Scudder's global investment perspective and dedication to
research and fundamental investment disciplines have helped us become one of the
largest and most respected investment managers in the world. Though times have
changed since our beginnings, we remain committed to our long-standing
principles: managing money with integrity and distinction; keeping the interests
of our clients first; providing access to investments and markets that may not
be easily available to individuals; and making investing as simple and
convenient as possible through friendly, comprehensive service.
This information must be preceded or accompanied by a
current prospectus.
Portfolio changes should not be considered recommendations
for action by individual investors.
SCUDDER
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