[Image] Scudder Development Fund Profile [Image]
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The fund profile, a supplement to the full prospectus, is designed as
an easy-to-read summary of fund risks, fees, and objectives. You can
click on any question to link to the Fund's prospectus and get more
information on that topic. Or, if you wish, you can proceed directly
to the Fund's prospectus. Once you have read the prospectus and
considered your investment goals, you can proceed to a Scudder Funds
application.
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Fund Profile
April 1, 1997
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1. What Is The Fund's Objective?
Scudder Development Fund seeks long-term growth of capital by
investing primarily in the securities of emerging growth companies.
2. What Does The Fund Invest In?
The Fund invests in equity securities, including common stocks and
convertible securities, of relatively small or little-known companies,
commonly referred to as emerging growth companies. The Fund's
investment adviser, Scudder, Stevens & Clark, Inc. believes these
companies may provide above-average earnings growth potential and/or
may receive greater market recognition. Both factors are believed to
offer significant opportunity for capital appreciation. To help reduce
risk, the Fund allocates its investments among many companies and
industries.
The Fund generally emphasizes investments in U.S. companies, although
it may invest in foreign securities that meet the same criteria as the
Fund's domestic holdings. In selecting industries and companies for
investment, the adviser will consider overall growth prospects,
financial condition, competitive position, technology, research and
development, productivity, labor costs, raw material costs and
sources, profit margins, return on investment, structural changes in
local economies, capital resources, the degree of governmental
regulation or deregulation, management and other factors.
3. What Are The Risks Of Investing In The Fund?
Emerging growth companies entail higher risk due to their smaller
size, relative age, limited product lines, distribution channels, and
financial and managerial resources. Further, there is typically less
publicly available information for smaller companies. Their securities
are often traded over-the-counter and thus the prices of these
securities are often more volatile than those of larger companies.
In addition, the Fund is managed as an aggressive stock fund.
Movements of the stock market will affect the Fund's share price,
which is likely to vary from day to day. The value of your investment
may decline as a result of declines in the overall stock market or in
the types of securities held in the Fund's portfolio. You incur
principal risk because your shares, when sold, may be worth more or
less than what you paid for them.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking long-term growth
of capital and:
o plan to hold your investment for the longer term (at least 5
years or more),
o can tolerate share price volatility with little or no current
income,
o have or plan to have other investments for the benefit of
diversification, and
o understand the risks of investing in emerging growth companies.
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 Development Fund, are:
Shareholder transaction expenses --
Expenses charged directly to your account for various transactions.
Sales Commission None
Commissions to Reinvest Dividends None
Redemption Fee None
Exchange Fee None
Annual Fund operating expenses --
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 June 30, 1996.
Investment management fee 0.98%
12b-1 fees None
Other expenses 0.26%
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Total Fund operating expenses 1.24%
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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
$13 $ 39 $68 $150
This example assumes reinvestment of all dividends and distributions
and that the total Fund operating expenses listed above remain the
same each year. This example should not be considered a representation
of past or future expenses or return. Actual Fund expenses and return
vary from year to year and may be higher or lower than those shown.
Please note that there is a $5 service fee if you request redemption
proceeds via wire.
6. How Has The Fund Performed Historically?
This chart shows how the Fund has performed over the past 10 years,
assuming reinvestment of all distributions. Performance is historical
and may not be indicative of future results. Total return and
principal value will fluctuate.
THE PRINTED DOCUMENT CONTAINS A BAR CHART HERE.
BAR CHART TITLE: Total returns for years ended December 31:
BAR CHART DATA:
1987 -1.42
1988 11.06
1989 23.21
1990 1.48
1991 71.83
1992 -1.82
1993 8.84
1994 -5.34
1995 50.67
1996 10.04%
The Fund's Average Annual Total Return
for the period ended March 31, 1997
One Year -12.73%
Five Years 8.37%
Ten Years 10.62%
7. Who Manages The Fund?
The Fund's investment adviser is Scudder, Stevens & Clark, Inc., a
leading provider of U.S. and international investment management for
clients throughout the world. The Fund is managed by a team of Scudder
investment professionals, who each play an important role in the
Fund's management process.
Lead Portfolio Manager Roy C. McKay assumed responsibility for the
Fund's day-to-day management when he joined Scudder in 1988. Mr. McKay
has 29 years of investment experience, with 20 years specializing in
small company growth stocks. Peter Chin, who has been with Scudder
since 1973, joined Scudder's small company group in 1986 and became a
Portfolio Manager of the Fund in 1993. Mr. Chin contributes expertise
in manufacturing, service and energy companies. Mr. Chin has 27 years
of investment experience including ten years in small company growth
stocks.
8. How Can I Invest?
To make it easy for you to open an account, you may invest by mail,
phone, fax, or in person. The minimum initial investment is $2,500
($1,000 for IRAs), except that shareholders may open a regular account
with a minimum of $1,000 if an investment program of $100/month is
established. A shareholder with a non-fiduciary account who maintains
an account balance of less than $2,500 without establishing an
investment program, may be assessed an annual fee of $10.00, payable
to the Fund. You may also exchange Fund shares free of charge within
the Scudder Family of Funds.
9. How Can I Redeem Shares?
You may redeem shares at the current share price on any business day
by telephone, fax, or mail.
10. When Are Distributions Made?
The Fund typically makes any dividends or capital gains distributions,
if any, in 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. A portion of dividends from net
investment income may qualify for the dividends-received deduction for
corporations.
11. What Services Does Scudder Provide?
As a shareholder, you'll enjoy:
o professional service from representatives who can answer your
questions and execute your transactions
o automated toll-free touchtone access to account information,
share prices and yields, and to perform transactions
o Scudder's quarterly shareholder newsletter, Scudder Perspectives
o regular, informative reports about the performance of your Fund
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[Image]Scudder wants you to make informed investment decisions. This
Fund Profile contains key information about the Fund. If you would
like more information before you invest, please consult the Fund's
accompanying prospectus. For details about the Fund's holdings or
recent investment strategies, please review the Fund's most recent
annual or semiannual report. The reports are free and may be ordered
by calling 1-800-225-2470.
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