[Image] Scudder California Tax Free Money 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
December 1, 1997
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1. What Are The Fund's Objectives?
Scudder California Tax Free Money Fund seeks stability of capital and
the maintenance of a constant net asset value of $1.00 per share while
providing California taxpayers income exempt from both California
personal tax and regular federal income tax.
2. What Does The Fund Invest In?
The Fund invests in municipal securities including municipal bonds,
variable rate demand instruments and municipal notes, of issuers
located in California and other qualifying issuers (including Puerto
Rico, the U.S. Virgin Islands and Guam). Ordinarily, the Fund expects
that 100% of its portfolio securities will be California municipal
securities. All of the Fund's investments are high quality, have a
remaining maturity of 397 calendar days or less and are considered to
have minimal credit risk by the Fund's investment adviser, Scudder,
Stevens & Clark, Inc. The weighted average effective maturity of the
Fund's portfolio is 90 days or less.
Generally, the Fund may purchase only securities rated, or issued by
an issuer rated, within the two highest quality ratings of two or more
of the following rating agencies: Moody's Investors Service, Inc. (Aaa
and Aa, MIG-1 and MIG-2, and P1 and P2), Standard & Poor's (AAA and
AA, SP1+ and SP1, A1+ and A1 and A2), and Fitch Investors Service,
Inc. (AAA and AA, F1+, F1 and F2). Where only one rating agency has
rated a security (or its issuer), the Fund may purchase that security
as long as the rating falls within the categories described above.
Where a security (or its issuer) is unrated, the Fund may purchase
that security if, in the judgment of the adviser, it is comparable in
quality to the securities described above.
The Fund may, for temporary defensive purposes, invest more than 20%
of its net assets in taxable securities.
3. What Are The Risks Of Investing In The Fund?
The Fund seeks to eliminate principal risk. However, the Fund is more
susceptible to factors adversely affecting issuers of California
municipal securities. The Fund is concentrated in securities issued by
California governments and related entities. Changes in the financial
condition or market assessment of the financial condition of these
entities could have a significant adverse impact on the Fund.
Consequently, an investment in the Fund may be riskier than an
investment in a money market fund that does not concentrate in
securities issued by, or within, a single state. There is also a
possibility the rating of a security held by the Fund may be
downgraded after it is purchased. This decrease in rating may be the
result of the inability of the state of California or any of its local
government entities to meet its financial obligations. The Fund's
share price is not insured or guaranteed, and there can be no
assurance that the Fund will be able to maintain a stable net asset
value of $1.00 per share. The Fund's yield may vary from day to day.
In addition, because it is non-diversified, the Fund may invest in a
smaller number of issuers, which will subject it to greater market and
credit risks than a diversified fund.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking stability of
principal as well as double tax-free income -- exempt both from
California personal income tax and regular federal income tax.
Depending on your tax bracket and individual situation, you may earn a
higher after-tax return from Scudder California Tax Free Money Fund
than from comparable investments that pay income subject to both
California state personal income tax and regular federal income tax.
Before investing, you should compare the Fund's yield to the after-tax
yield you would receive from a comparable investment paying taxable
income.
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 California Tax Free Money 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 (after expense maintenance) -
Expenses paid by the Fund before it distributes its net investment
income, expressed as a percentage of the Fund's average daily net
assets. Figures below are for the fiscal year ended March 31, 1997,
during which Scudder maintained the total annualized expenses of the
Fund at not more than 0.60% of average daily net assets. Had Scudder
not done so, expenses would have amounted to 0.79% including 0.50%
for management fees. Scudder will continue this expense maintenance
until July 31, 1998.
Investment management fee (after waiver) 0.31%
12b-1 fees None
Other expenses 0.29%
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Total Fund operating expenses (after waiver) 0.60%
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Example:
Assuming a 5% annual return and redemption at the end of each
period, the total expenses relating to a $1,000 investment would be:
1 Year 3 Years 5 Years 10 Years
$6 $19 $33 $75
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. On September 30, 1997, the
Fund's seven-day yield was 3.21%. For the Fund's current yield, call
1-800-343-2890. Performance is historical and may not be indicative of
future results.
THE ORIGINAL DOCUMENT CONTAINS A BAR CHART HERE.
BAR CHART TITLE: Total returns for years ended December 31:
BAR CHART DATA: 1988 4.73%
1989 5.56
1990 4.98
1991 3.88
1992 2.54
1993 1.95
1994 2.35
1995 3.38
1996 2.88
The Fund's Average Annual Total Return
for the period ended September 30, 1997
One Year 2.96%
Five Years 2.67%
Ten Years 3.56%
If the adviser had not maintained the Fund's expenses, average annual
total return for the one year, five year and ten year periods would
have been lower.
7. Who Manages The Fund?
The Fund's investment adviser is Scudder, Stevens & Clark, Inc., a
leading provider of U.S. and international investment management for
clients throughout the world. The Fund is managed by a team of Scudder
investment professionals who each play an important role in the Fund's
management process.
Rebecca L. Wilson is Lead Portfolio Manager for the Fund and
contributes 11 years of experience in municipal investing and
research. Ms. Wilson assumed responsibility for the Fund in 1987 after
joining Scudder in 1986. K. Sue Cote, Portfolio Manager, joined the
Fund's team in 1987 and has spent 13 years working with short-term
fixed-income investments.
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.
Distributions derived from interest on California municipal securities
are not subject to California state personal income taxes or to
regular federal income taxes, except for the possible applicability of
the federal alternative minimum tax. Interest on obligations of Puerto
Rico and other U.S. possessions may also be distributed as dividends
exempt from California state personal income taxes. Other
distributions are generally taxable to shareholders for California
state personal income tax purposes. For federal income tax purposes, a
portion of each Fund's income may be taxable to shareholders as
ordinary income. Long-term capital gains distributions, if any, are
taxable as long-term capital gains for federal and California state
personal income tax purposes 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.
Distributions of tax-exempt income are taken into consideration in
computing the portion, if any, of Social Security and railroad
retirement benefits subject to federal and, in some cases, state
taxes.
11. What Services Does Scudder Provide?
As a shareholder, you'll enjoy:
o professional service from representatives who can answer your
questions and execute your transactions
o automated toll-free touchtone access to account information,
share prices and yields, and to perform transactions
o Scudder's quarterly shareholder newsletter, Scudder Perspectives
o regular, informative reports about the performance of your Fund
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[Image]Scudder wants you to make informed investment decisions. This
Fund Profile contains key information about the Fund. If you would
like more information before you invest, please consult the Fund's
accompanying prospectus. For details about the Fund's holdings or
recent investment strategies, please review the Fund's most recent
annual or semiannual report. The reports are free and may be ordered
by calling 1-800-225-2470.
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