[Image] Scudder GNMA Fund Profile
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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
February 1, 1998
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1. What Are The Fund's Objectives?
Scudder GNMA Fund seeks high current income primarily from U.S.
Government guaranteed mortgage-backed securities.
2. What Does The Fund Invest In?
The Fund invests primarily (at least 65% of total assets) in
mortgage-backed securities issued or guaranteed by the Government
National Mortgage Association (GNMA). These guarantees, which apply
only to principal and interest, are supported by the full faith and
credit of the U.S. Government. Up to 35% of the Fund's total assets
may be held in cash, cash equivalents, or invested in securities
issued or directly guaranteed by the U.S. Government, including U.S.
Treasury bills, notes and bonds. Principal payments received on the
Fund's mortgage-backed securities will be reinvested in other
securities.
3. What Are The Risks Of Investing In The Fund?
The government guarantees apply only to the timely payment of both
principal and interest of the GNMA securities held in the Fund's
portfolio. These guarantees do not apply to the value or yield of the
Fund's mortgage-backed securities or to the value of Fund shares which
will vary in response to interest rate fluctuations and other market
and credit factors such as changes in the supply and demand for
mortgage-backed securities. You incur principal risk when you invest,
because your shares, when sold, may be worth more or less than what
you paid for them.
GNMA mortgage-backed securities are backed by pools of individual
mortgages. Mortgage borrowers have the right to prepay their mortgages
at any time. A decline in interest rates may lead to a faster rate of
prepayment and expose the Fund to a lower rate of return upon
reinvestment. The prepayment right will also tend to limit any
increase in net asset value of the Fund since the value of
mortgage-backed securities held by the Fund may not appreciate as
rapidly as the price of long-term, non-callable bonds.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking high current
income and:
o a high current yield comparable to those of high quality bonds
with long maturities,
o are interested in less share price volatility than longer-term
bonds, and
o can tolerate fluctuations in share price.
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 GNMA 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 March 31, 1997.
Investment management fee 0.62%
12b-1 fees None
Other expenses 0.34%
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Total Fund operating expenses 0.96%
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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 $31 $53 $118
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
December 31, 1997 was 6.10%.
THE PRINTED DOCUMENT CONTAINED A BAR CHART HERE
BAR CHART TITLE: Total returns for years ended December 31:
BAR CHART DATA: Below
1988 6.81%
1989 12.84
1990 10.14
1991 15.01
1992 6.96
1993 6.00
1994 -3.11
1995 16.57
1996 4.20
1997 8.39
The Fund's Average Annual Total Return for the
period ended December 31, 1997
One Year 8.39%
Five Years 6.22%
Ten Years 8.24%
7. Who Manages The Fund?
The Fund's investment adviser is Scudder Kemper Investments, Inc., one
of the nation's most experienced investment management firms. 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 Richard L. Vandenberg joined the team in 1998,
and is responsible for the Fund's day-to-day operations and overall
investment strategy. Mr. Vandenberg has been a portfolio manager for
Zurich Kemper since 1996 when he joined the firm. Prior to 1996, Mr.
Vandenberg had been a portfolio manager for several investment
management firms for over 22 years. In addition to being a portfolio
manager, Mr. Vandenberg was the head of the taxable fixed-income
department at Voyageur Asset Management.
8. How Can I Invest?
To make it easy for you to open an account, you may invest by mail,
phone, fax, or in person. The minimum initial investment is $2,500,
except that shareholders may open an account with at least $1,000 if
an automatic investment plan of $100/month is established. Scudder
retirement plans and certain other accounts have similar or lower
minimum share balance requirements. A shareholder who maintains a
nonfiduciary account balance of less than $2,500 without establishing
an automatic investment plan, will be assessed an annual fee of
$10.00, payable to the Fund. Retirement accounts and certain other
accounts will not be assessed the $10.00 charge. You may also exchange
Fund shares free of charge within the Scudder Family of Funds.
9. How Can I Redeem Shares?
You may redeem shares at the current share price on any business day
by telephone, fax, or mail.
10. When Are Distributions Made?
Dividends are declared daily and distributed monthly. Capital gain
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 their shares.
Short-term capital gains and any other taxable income distributions
are taxable as ordinary income. Dividends will not qualify for the
dividends-received deduction for corporations because the Fund's
income generally will not consist of dividends paid by U.S.
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 Kemper 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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