[Image] Scudder Small Company Value 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
April 1, 1997
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1. What Is The Fund's Objective?
Scudder Small Company Value Fund seeks to provide long-term growth of
capital by seeking out undervalued stocks of small U.S. companies.
2. What Does The Fund Invest In?
The Fund normally invests primarily (at least 90% of its assets) in
the common stock of small U.S. companies. The Fund seeks to identify
small, domestic companies that, in the opinion of the Fund's
investment adviser, Scudder, Stevens & Clark, Inc., are selling at
prices that do not reflect adequately their long-term business
potential. The Fund will invest in securities of companies that are
similar in size to those in the Russell 2000 Index of small stocks and
maintain a median market capitalization (i.e., current stock price
times shares outstanding) below $500 million.
The Fund is actively managed using a disciplined, value-oriented
investment management approach. The adviser uses a proprietary,
computerized model to identify for investment small public U.S.
companies selling at prices that, in the opinion of the adviser, do
not reflect adequately their long-term business potential. Companies
purchased for the Fund typically have attractive valuations relative
to the Russell 2000 Index-a widely used benchmark of small stock
performance-based on measures such as price to earnings, price to book
value and price to cash flow ratios; and favorable trends in earnings
growth rates and stock price momentum. It will not be unusual for the
Fund to participate in more than one hundred small companies,
representing a variety of U.S. industries.
3. What Are The Risks Of Investing In The Fund?
An investment in the Fund involves above-average stock market risk.
Investment in undervalued stocks carries the risk that their prices
may not rise to a level reflective of Scudder's valuation. Small
companies may have limited product lines, markets or financial
resources; may lack management depth or experience; and may be more
vulnerable to adverse general market or economic developments than
large companies. The prices of small company securities are often more
volatile than prices associated with large company issues, and can
display abrupt or erratic movements at times, due to limited trading
volumes and less publicly available information. The securities of
small companies are often traded over-the-counter and may not be
traded in volumes typical on a national securities exchange.
Consequently, in order to sell this type of holding, the Fund may need
to discount the securities from recent prices or dispose of the
securities over a long period of time.
Other risk factors are that 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, and that in rising markets the types of
stocks emphasized in the Fund may underperform other sectors of the
stock market. You incur principal risk when you invest because your
shares, when sold, may be worth more or less than what you paid for
them.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking capital growth
and:
o plan to hold your investment for the long-term,
o can tolerate fluctuations in share price,
o have or plan to have other investments for the benefit of
diversification, and
o understand the risks of stock market investing.
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 Small Company Value Fund are:
Shareholder transaction expenses -
Expenses charged directly to your account for various transactions.
Sales Commissions to Purchase None
Shares (Sales Load)
Commissions to Reinvest None
Dividends
Deferred Sales Charge None
Redemption Fees Payable to 1.00% *
the Fund
Exchange Fees Payable to the 1.00% *
Fund
* Imposed only on redemption or exchange of shares held less than one
year.
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 August 31, 1996,
during which Scudder maintained the total annualized expenses of the
Fund at not more than 1.50% of average daily net assets. Had Scudder
not done so, total operating expenses would have been: 2.61%,
including 0.75% for management fees. Scudder will continue this
expense maintenance until December 31, 1997.
Investment management fee (after waiver) 0%
12b-1 fees None
Other expenses 1.50%
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Total Fund operating expenses 1.50%
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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
$15 $47 $82 $179
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 table shows how the Fund has performed since it commenced
operations on October 6, 1995, assuming reinvestment of all
distributions. Performance is historical and may not be indicative of
future results. Total return and principal value will fluctuate.
THE ORIGINAL DOCUMENT CONTAINS A BAR CHART HERE.
BAR CHART TITLE: Total returns for year ended December 31:
BAR CHART DATA: 1996 23.84%
The Fund's Average Annual Total Return
for the period ended March 31, 1997
One Year 18.92%
Life of Fund 19.30%
If the adviser had not maintained the Fund's expenses, average annual
total return 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.
Philip S. Fortuna, Lead Portfolio Manager, joined Scudder in 1986 as
manager of institutional equity accounts. He became director of
quantitative research in 1987 and served as director of investment
operations from 1993 to 1994. James M. Eysenbach, Portfolio Manager,
joined Scudder in 1991 as a senior quantitative analyst and is
currently director of quantitative research for Scudder. Mr. Eysenbach
has more than ten years investment research and management experience.
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 automatic investment plan 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 automatic investment plan, may be assessed an annual fee of $10.00,
payable to the Fund. You may also exchange Fund shares 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. There may be a 1% fee retained by the Fund
which is imposed only on redemptions or exchanges of shares held less
than one year.
10. When Are Distributions Made?
The Fund typically makes dividends and capital gains distributions, if
any, 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. A portion of such 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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