[Image] Scudder Small Company Value 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
July 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 Shares (Sales Load) None
Commissions to Reinvest Dividends None
Deferred Sales Charge None
Redemption Fees Payable to the Fund 1.00%*
Exchange Fees Payable to the Fund 1.00%*
* 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
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$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 return for year ended December 31:
BAR CHART DATA: 1996 23.84%
The Fund's Average Annual Total Return
for the period ended June 30, 1997
One Year 33.66%
Life of Fund 27.67%
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, 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 an 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 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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