<PAGE> PAGE 1
000 B000000 06/30/1999
000 C000000 088048
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 6.1
000 J000000 U
001 A000000 SCUDDER SECURITIES TRUST
001 B000000 811-2021
001 C000000 6172952567
002 A000000 TWO INTERNATIONAL PLACE
002 B000000 BOSTON
002 C000000 MA
002 D010000 02110
002 D020000 4103
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 7
007 C010100 1
007 C020100 SCUDDER DEVELOPMENT FUND
007 C030100 N
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A00AA01 SCUDDER KEMPER INVESTMENTS, INC.
008 B00AA01 A
008 C00AA01 801-252
008 D01AA01 NEW YORK
008 D02AA01 NY
008 D03AA01 10154
010 A00AA01 SCUDDER FUND ACCOUNTING CORPORATION
010 C01AA01 BOSTON
010 C02AA01 MA
010 C03AA01 02110
011 A00AA01 SCUDDER INVESTOR SERVICES, INC.
011 B00AA01 8-298
011 C01AA01 BOSTON
011 C02AA01 MA
011 C03AA01 02110
011 C04AA01 4103
<PAGE> PAGE 2
012 A00AA01 SCUDDER SERVICE CORPORATION
012 B00AA01 84-1489
012 C01AA01 BOSTON
012 C02AA01 MA
012 C03AA01 02107
012 C04AA01 2291
013 A00AA01 PRICEWATERHOUSECOOPERS LLP
013 B01AA01 BOSTON
013 B02AA01 MA
013 B03AA01 02110
014 A00AA01 SCUDDER INVESTOR SERVICES, INC.
014 B00AA01 8-298
014 A00AA02 GRUNTAL & CO., INC.
014 B00AA02 8-31022
014 A00AA03 GMS GROUP LLC (A GRUNTAL AFFILIATE)
014 B00AA03 8-23936
014 A00AA04 ZURICH CAPITAL MARKETS
014 B00AA04 8-49827
014 A00AA05 BANK HANDLOWY
014 B00AA05 8-24613
014 A00AA06 KEMPER DISTRIBUTORS, INC.
014 B00AA06 8-47765
015 A00AA01 STATE STREET BANK AND TRUST COMPANY
015 B00AA01 C
015 C01AA01 BOSTON
015 C02AA01 MA
015 C03AA01 02110
015 E01AA01 X
015 A00AA02 GENERALE BANK
015 B00AA02 S
015 C01AA02 BRUSSELS
015 D01AA02 BELGIUM
015 E04AA02 X
015 A00AA03 GIROCREDIT BANK
015 B00AA03 S
015 C01AA03 VIENNA
015 D01AA03 AUSTRIA
015 E04AA03 X
015 A00AA04 CANADA TRUSTCO MORTGAGE COMPANY
015 B00AA04 S
015 C01AA04 TORONTO
015 D01AA04 CANADA
015 E04AA04 X
015 A00AA05 DEN DANSKE BANK
015 B00AA05 S
015 C01AA05 COPENHAGEN
015 D01AA05 DENMARK
015 E04AA05 X
015 A00AA06 MERITA BANK LIMITED
015 B00AA06 S
015 C01AA06 HELSINKI
<PAGE> PAGE 3
015 D01AA06 FINLAND
015 E04AA06 X
015 A00AA07 BANQUE PARIBAS
015 B00AA07 S
015 C01AA07 PARIS
015 D01AA07 FRANCE
015 E04AA07 X
015 A00AA08 DRESDNER BANK
015 B00AA08 S
015 C01AA08 FRANKFURT
015 D01AA08 GERMANY
015 E04AA08 X
015 A00AA09 NATIONAL BANK OF GREECE
015 B00AA09 S
015 C01AA09 ATHENS
015 D01AA09 GREECE
015 E04AA09 X
015 A00AA10 STANDARD CHARTERED BANK
015 B00AA10 S
015 C01AA10 HONG KONG
015 D01AA10 HONG KONG
015 E04AA10 X
015 A00AA11 STANDARD CHARTERED BANK
015 B00AA11 S
015 C01AA11 JAKARTA
015 D01AA11 INDONESIA
015 E04AA11 X
015 A00AA12 BANK OF IRELAND
015 B00AA12 S
015 C01AA12 DUBLIN
015 D01AA12 IRELAND
015 E04AA12 X
015 A00AA13 BANQUE PARIBAS
015 B00AA13 S
015 C01AA13 MILAN
015 D01AA13 ITALY
015 E04AA13 X
015 A00AA14 SUMITOMO TRUST & BANKING CO., LTD.
015 B00AA14 S
015 C01AA14 OSAKA
015 D01AA14 JAPAN
015 E04AA14 X
015 A00AA15 CITIBANK N.A., SEOUL
015 B00AA15 S
015 C01AA15 SEOUL
015 D01AA15 KOREA
015 E04AA15 X
015 A00AA16 STANDARD CHARTERED BANK
015 B00AA16 S
015 C01AA16 BERHAD
015 D01AA16 MALAYSIA
<PAGE> PAGE 4
015 E04AA16 X
015 A00AA17 CITIBANK MEXICO, S.A.
015 B00AA17 S
015 C01AA17 MEXICO CITY
015 D01AA17 MEXICO
015 E04AA17 X
015 A00AA18 MEESPIERSON N.V.
015 B00AA18 S
015 C01AA18 AMSTERDAM
015 D01AA18 NETHERLANDS
015 E04AA18 X
015 A00AA19 ANZ BANKING GROUP LIMITED
015 B00AA19 S
015 C01AA19 WELLINGTON
015 D01AA19 NEW ZEALAND
015 E04AA19 X
015 A00AA20 CHRISTIANA BANK OG KREDITKASSE
015 B00AA20 S
015 C01AA20 OSLO
015 D01AA20 NORWAY
015 E04AA20 X
015 A00AA21 STANDARD CHARTERED BANK
015 B00AA21 S
015 C01AA21 MANILA
015 D01AA21 PHILIPPINES
015 E04AA21 X
015 A00AA22 BANCO COMMERCIAL PORTUGUES
015 B00AA22 S
015 C01AA22 LISBON
015 D01AA22 PORTUGAL
015 E04AA22 X
015 A00AA23 THE DEVELOPMENT BANK OF SINGAPORE LTD.
015 B00AA23 S
015 C01AA23 SINGAPORE
015 D01AA23 SINGAPORE
015 E04AA23 X
015 A00AA24 STANDARD BANK OF SOUTH AFRICA LIMITED
015 B00AA24 S
015 C01AA24 JOHANNESBURG
015 D01AA24 SOUTH AFRICA
015 E04AA24 X
015 A00AA25 BANCO SANTANDER
015 B00AA25 S
015 C01AA25 MADRID
015 D01AA25 SPAIN
015 E04AA25 X
015 A00AA26 SKANDINAVISKA ENSKILDA BANKEN
015 B00AA26 S
015 C01AA26 STOCKHOLM
015 D01AA26 SWEDEN
015 E04AA26 X
<PAGE> PAGE 5
015 A00AA27 UNION BANK OF SWITZERLAND
015 B00AA27 S
015 C01AA27 ZURICH
015 D01AA27 SWITZERLAND
015 E04AA27 X
015 A00AA28 STANDARD CHARTERED BANK
015 B00AA28 S
015 C01AA28 BANGKOK
015 D01AA28 THAILAND
015 E04AA28 X
015 A00AA29 STATE STREET BANK AND TRUST COMPANY
015 B00AA29 S
015 C01AA29 LONDON
015 D01AA29 UNITED KINGDOM
015 E04AA29 X
015 A00AA30 CITIBANK N.A.
015 B00AA30 S
015 C01AA30 ISTANBUL
015 D01AA30 TURKEY
015 E04AA30 X
015 A00AA31 WESTPAC BANKING CORPORATION
015 B00AA31 S
015 C01AA31 SYDNEY
015 D01AA31 AUSTRALIA
015 E04AA31 X
015 A00AA32 CITIBANK N.A.
015 B00AA32 S
015 C01AA32 BUENOS AIRES
015 D01AA32 ARGENTINA
015 E04AA32 X
015 A00AA33 CITIBANK N.A.
015 B00AA33 S
015 C01AA33 SANTIAGO
015 D01AA33 CHILE
015 E04AA33 X
015 A00AA34 CITITRUST COLOMBIA SA SOCIEDAD FIDUCIARIA
015 B00AA34 S
015 C01AA34 BOGOTA
015 D01AA34 COLOMBIA
015 E04AA34 X
015 A00AA35 CITIBANK BUDAPEST RT
015 B00AA35 S
015 C01AA35 BUDAPEST
015 D01AA35 HUNGARY
015 E04AA35 X
015 A00AA36 DEUTSCHE BANK AG
015 B00AA36 S
015 C01AA36 BOMBAY
015 D01AA36 INDIA
015 E04AA36 X
015 A00AA37 BANK HAPOALIM BM
<PAGE> PAGE 6
015 B00AA37 S
015 C01AA37 TEL-AVIV
015 D01AA37 ISRAEL
015 E04AA37 X
015 A00AA38 DEUTSCHE BANK AG
015 B00AA38 S
015 C01AA38 KARACHI
015 D01AA38 PAKISTAN
015 E04AA38 X
015 A00AA39 CITIBANK N.A.
015 B00AA39 S
015 C01AA39 LIMA
015 D01AA39 PERU
015 E04AA39 X
015 A00AA40 CITIBANK POLAND S.A.
015 B00AA40 S
015 C01AA40 WARSAW
015 D01AA40 POLAND
015 E04AA40 X
015 A00AA41 THE HONG KONG & SHANGHAI BANKING CORP
015 B00AA41 S
015 C01AA41 COLOMBO
015 D01AA41 SRI LANKA
015 E04AA41 X
015 A00AA42 CENTRAL TRUST OF CHINA
015 B00AA42 S
015 C01AA42 TAIPEI
015 D01AA42 TAIWAN
015 E04AA42 X
015 A00AA43 CITIBANK N.A.
015 B00AA43 S
015 C01AA43 MONTEVIDEO
015 D01AA43 URUGUAY
015 E04AA43 X
015 A00AA44 CITIBANK N.A.
015 B00AA44 S
015 C01AA44 CARACAS
015 D01AA44 VENEZUELA
015 E04AA44 X
015 A00AA45 BANKBOSTON, N.A.
015 B00AA45 S
015 C01AA45 SAO PAULO
015 D01AA45 BRAZIL
015 E04AA45 X
015 A00AA46 BARCLAYS BANK OF BOTSWANA LIMITED
015 B00AA46 S
015 C01AA46 GABORONE
015 D01AA46 BOTSWANA
015 E04AA46 X
015 A00AA47 HONG KONG & SHANGHAI BANKING CORP. LTD.
015 B00AA47 S
<PAGE> PAGE 7
015 C01AA47 SHANGHAI
015 D01AA47 CHINA
015 E04AA47 X
015 A00AA48 CESKOSLOVENSKA OBCHODNI BANKA A.S.
015 B00AA48 S
015 C01AA48 PRAGUE
015 D01AA48 CZECH REPUBLIC
015 E04AA48 X
015 A00AA49 THE BANK OF BERMUDA LIMITED
015 B00AA49 S
015 C01AA49 HAMILTON
015 D01AA49 BERMUDA
015 E04AA49 X
015 A00AA50 BARCLAYS BANK OF KENYA LIMITED
015 B00AA50 S
015 C01AA50 NAIROBI
015 D01AA50 KENYA
015 E04AA50 X
015 A00AA51 CESKOSLOVENSKA OBCHODNI BANKA, A.S.
015 B00AA51 S
015 C01AA51 SLOVAKIA
015 D01AA51 SLOVAK REPUBLIC
015 E04AA51 X
015 A00AA52 BARCLAYS BANK OF SWAZILAND LIMITED
015 B00AA52 S
015 C01AA52 SINGAPORE
015 D01AA52 SWAZILAND
015 E04AA52 X
015 A00AA53 BARCLAYS BANK OF ZAMBIA LIMITED
015 B00AA53 S
015 C01AA53 LUSAKA
015 D01AA53 ZAMBIA
015 E04AA53 X
015 A00AA54 BARCLAYS BANK OF ZIMBABWE LIMITED
015 B00AA54 S
015 C01AA54 HARARE
015 D01AA54 ZIMBABWE
015 E04AA54 X
015 A00AA55 BARCLAYS BANK OF GHANA LIMITED
015 B00AA55 S
015 C01AA55 ACCRA
015 D01AA55 GHANA
015 E04AA55 X
015 A00AA56 BARCLAYS BANK PLC
015 B00AA56 S
015 C01AA56 NICOSIA
015 D01AA56 CYPRUS
015 E04AA56 X
015 A00AA57 STANDARD CHARTERED BANK
015 B00AA57 S
015 C01AA57 DHAKA
<PAGE> PAGE 8
015 D01AA57 BANGLADESH
015 E04AA57 X
015 A00AA58 STATE STREET LONDON LIMITED
015 B00AA58 S
015 C01AA58 LONDON
015 D01AA58 ENGLAND
015 E04AA58 X
015 A00AA59 STATE STREET BANK AND TRUST COMPANY
015 B00AA59 S
015 C01AA59 SYDNEY
015 D01AA59 AUSTRALIA
015 E04AA59 X
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 84
019 C00AA00 SCUDDERKEM
020 A000001 MORGAN STANLEY & COMPANY
020 B000001 13-2655998
020 C000001 5900
020 A000002 DE SHAW & COMPANY
020 C000002 5873
020 A000003 ALEX BROWN AND SONS.
020 B000003 52-1319768
020 C000003 50
020 A000004 FURMAN SELTZ
020 C000004 39
020 A000005 PAINE WEBBER
020 B000005 13-2638166
020 C000005 34
020 A000006 CREDIT SUISSE FIRST BOSTON
020 B000006 13-5659485
020 C000006 31
020 A000007 S G WARBURG & CO
020 B000007 13-3243112
020 C000007 31
020 A000008 NATIONS BANC MONTGOMERY SECURITIES INC.
020 C000008 27
020 A000009 PRIUDENTIAL SECURITIES INC.
020 B000009 22-2347336
020 C000009 26
020 A000010 INSTINET
020 B000010 13-3443395
020 C000010 25
021 000000 12443
022 A000001 STATE STREET BANK AND TRUST
022 B000001 04-1867445
022 C000001 7704023
022 D000001 0
022 A000002 DONALDSON LUF & JEN FIXED INC.
022 B000002 13-2741729
022 C000002 1789514
<PAGE> PAGE 9
022 D000002 0
022 A000003 FIRST CHICAGO CAP MARKETS
022 B000003 36-3595942
022 C000003 84977
022 D000003 0
022 A000004 MERRILL LYNCH
022 B000004 13-5674085
022 C000004 32798
022 D000004 24259
022 A000005 SMITH BARNEY SHEARSON
022 B000005 13-1912900
022 C000005 13335
022 D000005 30413
022 A000006 GOLDMAN, SACHS & CO.
022 B000006 13-5108880
022 C000006 24458
022 D000006 17902
022 A000007 MORGAN STANLEY & CO
022 B000007 13-2655998
022 C000007 20376
022 D000007 21535
022 A000008 PAINE WEBBER
022 B000008 13-2638166
022 C000008 5958
022 D000008 35814
022 A000009 ALEX BROWN & SONS
022 B000009 52-1319768
022 C000009 12522
022 D000009 24622
022 A000010 BEAR STEARNS & CO.
022 B000010 13-3299429
022 C000010 7649
022 D000010 25542
023 C000000 9796025
023 D000000 324922
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<PAGE> PAGE 10
077 G000000 N
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077 P000000 N
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077 Q020000 N
077 Q030000 Y
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080 A00AA00 ICI MUTUAL INSURANCE COMPANY
080 B00AA00 NATIONAL UNION / CHUBB INSURANCE COMPANY
080 C00AA00 150000
081 A00AA00 Y
081 B00AA00 206
082 A00AA00 N
082 B00AA00 0
083 A00AA00 N
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028 A010100 73381
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<PAGE> PAGE 11
028 G010100 532196
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050 000100 N
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052 000100 N
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054 D000100 N
054 E000100 N
054 F000100 N
054 G000100 N
054 H000100 Y
054 I000100 N
054 J000100 Y
054 K000100 N
054 L000100 N
054 M000100 Y
054 N000100 N
054 O000100 Y
062 A000100 N
062 B000100 0.0
062 C000100 0.0
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<PAGE> PAGE 12
063 A000100 0
063 B000100 0.0
066 A000100 Y
066 B000100 N
066 C000100 N
066 D000100 Y
066 E000100 N
066 F000100 N
066 G000100 N
067 000100 N
068 A000100 N
068 B000100 N
069 000100 N
070 A010100 Y
070 A020100 Y
070 B010100 Y
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070 C010100 Y
070 C020100 N
070 D010100 Y
070 D020100 N
070 E010100 Y
070 E020100 N
070 F010100 Y
070 F020100 N
070 G010100 Y
070 G020100 N
070 H010100 Y
070 H020100 N
070 I010100 N
070 I020100 N
070 J010100 Y
070 J020100 Y
070 K010100 Y
070 K020100 N
070 L010100 Y
070 L020100 N
070 M010100 Y
070 M020100 N
070 N010100 Y
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070 O020100 N
070 P010100 Y
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070 Q020100 N
070 R010100 N
070 R020100 N
071 A000100 670904
071 B000100 860891
<PAGE> PAGE 13
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<PAGE> PAGE 14
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SIGNATURE JOHN MILLETTE
TITLE SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the Scudder
Development Fund Annual Report for the fiscal year ended 6/30/99 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> Scudder Development Fund
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 517,852,658
<INVESTMENTS-AT-VALUE> 750,593,672
<RECEIVABLES> 27,752,494
<ASSETS-OTHER> 5,635
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 778,351,801
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,842,923
<TOTAL-LIABILITIES> 3,842,923
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 385,745,279
<SHARES-COMMON-STOCK> 18,415,573
<SHARES-COMMON-PRIOR> 20,289,263
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 156,025,921
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 232,737,678
<NET-ASSETS> 774,508,878
<DIVIDEND-INCOME> 2,235,693
<INTEREST-INCOME> 1,949,774
<OTHER-INCOME> 0
<EXPENSES-NET> 11,035,337
<NET-INVESTMENT-INCOME> (6,849,870)
<REALIZED-GAINS-CURRENT> 157,147,002
<APPREC-INCREASE-CURRENT> (70,623,956)
<NET-CHANGE-FROM-OPS> 79,673,176
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (70,435,632)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,005,318,406
<NUMBER-OF-SHARES-REDEEMED> (1,152,988,975)
<SHARES-REINVESTED> 67,536,828
<NET-CHANGE-IN-ASSETS> (70,896,197)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 69,320,862
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 7,200,092
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 11,035,337
<AVERAGE-NET-ASSETS> 731,732,499
<PER-SHARE-NAV-BEGIN> 41.67
<PER-SHARE-NII> (0.35)
<PER-SHARE-GAIN-APPREC> 4.49
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (3.75)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 42.06
<EXPENSE-RATIO> 1.51
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Scudder Securities Trust:
In planning and performing our audits of the financial statements and financial
highlights (hereinafter referred to as "financial statements") of Scudder
Development Fund, a series of Scudder Securities Trust, at June 30, 1999 and
July 31, 1999, we considered its internal control, including control activities
for safeguarding securities, in order to determine our auditing procedures for
the purpose of expressing our opinion on the financial statements and to comply
with the requirements of Form N-SAR, not to provide assurance on internal
control.
The management of Scudder Development Fund is responsible for establishing and
maintaining internal control. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and related
costs of controls. Generally, controls that are relevant to an audit pertain to
the entity's objective of preparing financial statements for external purposes
that are fairly presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of assets against
unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, error or fraud may occur
and not be detected. Also, projection of any evaluation of internal control to
future periods is subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and operation may
deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or more
of the internal control components does not reduce to a relatively low level the
risk that misstatements caused by error or fraud in amounts that would be
material in relation to the financial statements being audited may occur and not
be detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters involving
internal control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above as of
June 30, 1999 and July 31, 1999.
This report is intended solely for the information and use of management, the
Trustees of Scudder Securities Trust and the Securities and Exchange Commission.
PricewaterhouseCoopers LLP
Boston, Massachusetts
September 3, 1999
SCUDDER
Scudder Development Fund
Supplement to Prospectus
Dated November 1, 1998
The following replaces the first sentence in the paragraph under "Investment
objective and policies" and elsewhere in the Fund's prospectus where the Fund's
investment objective is stated:
Scudder Development Fund seeks long-term capital appreciation by investing
primarily in U.S. companies with the potential for above-average growth.
The following text replaces the "Investment characteristics" section detailed on
page 4 of the Fund's prospectus:
Investment characteristics
o a flexible, professionally managed equity portfolio represented by a broad
array of domestic growth companies
o potential for above-average long-term capital appreciation in
return for above-average risk
o a no-load fund with no sales charges, commissions or 12b-1
fees
The following text replaces the first two paragraphs under the section entitled
"Investment objective and policies -- Investments" on page 5 of the Fund's
prospectus:
Investments
The Fund generally invests in equity securities, including common stocks and
convertible securities, of companies that the Fund's investment adviser, Scudder
Kemper Investments, Inc. (the "Adviser"), believes have the potential for
above-average revenue, earnings, business value and/or cash flow growth. These
factors are believed to offer significant opportunity for capital appreciation,
and the Adviser will attempt to identify these opportunities before their
potential is recognized by investors in general. The management team pursues a
flexible investment strategy in the selection of securities, not limited to any
particular investment sector, industry or company size. The Fund may, depending
upon market circumstances, emphasize securities of small-, medium- or
large-sized companies from time to time.
To help reduce risk, the Fund allocates its investments among many companies. In
selecting industries and companies for investment, the
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Adviser may consider many factors, including 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.
The following text replaces the "Why invest in the fund?" section on page 5 of
the Fund's prospectus:
Scudder Development Fund offers participation in the potential growth of U.S.
companies with favorable long-term prospects for capital appreciation. The Fund
offers the benefits of professional management of investments in small-, medium-
and large- sized U.S. growth companies. In return for accepting above-average
risk, investors gain access to a large, diversified portfolio designed for
above-average capital appreciation compared to that available from portfolios
limited to stocks of larger companies such as those in the Standard & Poor's 500
Stock Index.
The following information replaces disclosure in the "Shareholder Benefits -- A
team approach to investing" section on page 15 of the Fund's prospectus:
Sewall F. Hodges, Lead Portfolio Manager, assumed responsibility for the Fund's
day-to-day operations in June 1999. Mr. Hodges has over twelve years of
portfolio management experience and joined the Adviser in 1995.
Kurt R. Stalzer, Portfolio Manager, has over 15 years of investment industry
experience including seven years managing mid- and small-capitalization equity
securities. Prior to joining the Adviser in 1996, Mr. Stalzer managed small
company growth equity securities for an investment management firm.
June 30, 1999
