[Image] Scudder Capital Growth Fund Prospectus [Image]
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This prospectus sets forth concisely the information about Scudder
Capital Growth Fund, a series of Scudder Equity Trust, an open-end
management investment company, that a prospective investor should know
before investing. Please retain it for future reference.
If you require more detailed information, a combined Statement of
Additional Information dated February 1, 1996, as amended from time to
time, may be obtained without charge by writing Scudder Investor
Services, Inc., Two International Place, Boston, MA 02110-4103 or
calling 1-800-225-2470. The Statement, which is incorporated by
reference into this prospectus, has been filed with the Securities and
Exchange Commission.
The Securities and Exchange Commission maintains a Web site
(http://www.sec.gov) that contains the Statement of Additional
Information, material incorporated by reference, and other information
regarding the Fund.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Scudder Capital Growth Fund
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Prospectus
February 1, 1996
As Revised September 6, 1996
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A pure no-load(tm) (no sales charges) mutual fund which seeks to
maximize long-term capital growth.
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Expense information
How to compare a Scudder pure no-load(tm) fund
This information is designed to help you understand the various
costs and expenses of investing in Scudder Capital Growth Fund (the
"Fund"). By reviewing this table and those in other mutual funds'
prospectuses, you can compare the Fund's fees and expenses with
those of other funds. With Scudder's pure no-load(tm) funds, you pay
no commissions to purchase or redeem shares, or to exchange from one
fund to another. As a result, all of your investment goes to work
for you.
1) Shareholder transaction expenses: Expenses charged directly to
your individual account in the Fund for various transactions.
Sales commissions to purchase shares (sales NONE
load)
Commissions to reinvest dividends NONE
Redemption fees NONE *
Fees to exchange shares NONE
2) 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 for the fiscal year ended
September 30, 1995.
Investment management fee 0.67%
12b-1 fees NONE
Other expenses 0.31%
------
Total Fund operating expenses 0.98%
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Example
Based on the level of total Fund operating expenses listed above,
the total expenses relating to a $1,000 investment, assuming a 5%
annual return and redemption at the end of each period, are listed
below. Investors do not pay these expenses directly; they are paid
by the Fund before it distributes its net investment income to
shareholders. (As noted above, the Fund has no redemption fees of
any kind.)
1 Year 3 Years 5 Years 10 Years
$10 $31 $54 $120
See "Fund organization -- Investment adviser" for further
information about the investment management fee. This example
assumes reinvestment of all dividends and distributions and that the
percentage amounts listed under "Annual Fund operating expenses"
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.
* You may redeem by writing or calling the Fund. If you wish to
receive your redemption proceeds via wire, there is a $5 wire
service fee. For additional information, please refer to
"Transaction information -- Redeeming shares."
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Financial highlights
The following table includes selected data for a share outstanding
throughout each period and other performance information derived from
the audited financial statements.
If you would like more detailed information concerning the Fund's
performance, a complete portfolio listing and audited financial
statements are available in the Fund's Annual Report dated September
30, 1995 and may be obtained without charge by writing or calling
Scudder Investor Services, Inc.
<TABLE>
<CAPTION>
YEARS ENDED SEPTEMBER 30,
-------------------------------------------------------------------------------------------------
1995 1994 1993(b) 1992 1991 1990 1989 1988 1987 1986
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period . . . $19.54 $23.06 $19.12 $19.30 $14.77 $22.30 $16.10 $20.41 $17.17 $15.35
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income from investment
operations:
Net investment
income (loss) . . . .13 (.02) .06 .12 .20 .30(a) .21 .09 .16 .26
Net realized and
unrealized gain
(loss) on investment
transactions . . . . 3.98 (.88) 5.23 .90 6.05 (6.22) 6.61 (1.82) 5.77 3.67
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment
operations . . . . . 4.11 (.90) 5.29 1.02 6.25 (5.92) 6.82 (1.73) 5.93 3.93
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Less distributions from:
Net investment
income . . . . . . . -- -- (.10) (.22) (.37) (.16) (.07) (.20) (.23) (.23)
Net realized gains
on investment
transactions . . . . (.73) (2.62) (1.25) (.98) (1.35) (1.45) (.55) (2.38) (2.46) (1.88)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total distributions. . . . . (.73) (2.62) (1.35) (1.20) (1.72) (1.61) (.62) (2.58) (2.69) (2.11)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period . . . . . . $22.92 $19.54 $23.06 $19.12 $19.30 $14.77 $22.30 $16.10 $20.41 $17.17
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total Return (%) . . . . . 21.96 (4.72) 28.83 5.61 45.85 (28.20) 44.05 (5.61) 39.03 28.46
Ratios and
Supplemental Data
Net assets, end of
period ($ millions) . . . 1,492 1,338 1,387 1,054 1,058 712 1,013 491 583 414
Ratio of operating
expenses to average
net assets (%). . . . . . .98 .97 .96 .98 1.04 .94 .88 .95 .88 .84
Ratio of net
investment income
(loss) to average
net assets (%). . . . . . .62 (.12) .22 .57 1.24 1.56 1.22 .63 .86 1.50
Portfolio turnover
rate (%). . . . . . . . . 153.6 75.8 92.2 92.4 93.2 87.9 55.7 48.5 58.2 55.8
</TABLE>
(a) Net investment income per share includes nonrecurring dividend income
amounting to $.14 per share.
(b) Effective October 1, 1992, the Fund discontinued using equalization
accounting.
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A message from Scudder's chairman
[Image] Scudder, Stevens & Clark, Inc., investment adviser to the
Scudder Family of Funds, was founded in 1919. We offered
America's first no-load mutual fund in 1928. Today, we manage in
excess of $100 billion for many private accounts and over 50 mutual
fund portfolios. We manage the mutual funds in a special program for
the American Association of Retired Persons, as well as the fund
options available through Scudder Horizon Plan, a tax-advantaged
variable annuity. We also advise The Japan Fund and nine closed-end
funds that invest in countries around the world.
The Scudder Family of Funds is designed to make investing easy and
less costly. It includes money market, tax free, income and growth
funds as well as IRAs, 401(k)s, Keoghs and other retirement plans.
Services available to all shareholders include toll-free access to the
professional service representatives of Scudder Investor Relations,
easy exchange among funds, shareholder reports, informative
newsletters and the walk-in convenience of Scudder Funds Centers.
All Scudder mutual funds are pure no-load(tm). This means you pay no
commissions to purchase or redeem your shares or to exchange from one
fund to another. There are no "12b-1" fees either, which many other
funds now charge to support their marketing efforts. All of your
investment goes to work for you. We look forward to welcoming you as a
shareholder.
Scudder Capital Growth Fund
Investment objective
o to maximize long-term capital growth
Investment characteristics
o a broad and flexible investment program emphasizing common stocks
o above-average capital growth potential
o the possibility for above-average stock market risk
o daily liquidity at current net asset value
Contents
Investment objective and policies
Why invest in the Fund?
Investment results
Additional information about policies and investments
Distribution and performance information
Fund organization
Purchases
Exchanges and redemptions
Transaction information
Shareholder benefits
Trustees and Officers
Investment products and services
How to contact Scudder
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Investment objective and policies
Scudder Capital Growth Fund (the "Fund"), a diversified series of
Scudder Equity Trust, seeks to maximize long-term capital growth
through a broad and flexible investment program. The Fund invests in
marketable securities, principally common stocks and, consistent with
its objective of long-term capital growth, preferred stocks.
Additionally, the Fund may invest in debt securities, repurchase
agreements, convertible securities, and may engage in strategic
transactions as described under "Investment restrictions."
Except as otherwise indicated, the Fund's investment objective and
policies are not fundamental and may be changed without a vote of
shareholders. Shareholders will receive written notice of any changes
in the Fund's objective. If there is a change in investment objective,
shareholders should consider whether the Fund remains an appropriate
investment in light of their then current financial position and
needs. There can be no assurance that the Fund's objective will be
met.
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Investments
The Fund is free to invest in a wide range of marketable securities
which the Fund's investment adviser, Scudder, Stevens & Clark, Inc.
(the "Adviser"), believes offer the potential for long-term,
above-average growth. This makes the Fund different from growth funds
with more specialized investment policies.
The Fund's investment flexibility enables it to pursue investment
value in all sectors of the stock market, including:
o companies that generate or apply new technologies, new and
improved distribution techniques or new services, such as those
in the business equipment, electronics, specialty merchandising
and health service industries;
o companies that own or develop natural resources, such as energy
exploration companies;
o companies that may benefit from changing consumer demands and
lifestyles, such as financial service organizations and
telecommunications companies;
o foreign companies, including those in countries with more rapid
economic growth than the U.S.;
o companies whose earnings growth is projected at a pace well in
excess of the average (growth companies); and
o companies whose earnings are temporarily depressed and are
currently out of favor with most investors.
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Why invest in the Fund?
The expansion of the U.S. and world economies and ongoing
technological development continuously create new investment
opportunities. Through its investments in common stocks, the Fund
gives investors the chance to participate in these opportunities and
the potential they offer to maximize long-term capital growth.
In seeking capital growth, the Fund looks for companies whose
securities appear to present a favorable relationship between market
price and opportunity. These may include securities of companies whose
fundamentals or products may be of only average promise.
Market misconceptions, temporary bad news, and other factors may cause
a security to be out of favor in the stock market and to trade at a
price below its potential value. These "undervalued" securities can
provide the opportunity for above-average market performance.
In addition, the Fund offers all the benefits of the Scudder Family of
Funds. Scudder, Stevens & Clark, Inc. manages a diverse family of pure
no-load(tm) funds and provides a wide range of services to help
investors meet their investment needs. Please refer to "Investment
products and services" for additional information.
Investment results
The Fund is designed for long-term investors who can accept stock
market risk. The value of the Fund's portfolio securities fluctuates
with market and economic conditions, causing returns and principal
value to fluctuate. Depending upon when shares are sold, their value
may be higher or lower than when purchased. In return for accepting
stock market risk, there may be a greater return on investment than
from a money market or income fund.
Annual Capital Changes*
<TABLE>
<CAPTION>
Standard &
Poor's 500 Stock
Scudder Capital Growth Fund Index
--------------------------------------------------- ----------------
September Net Asset Capital Gains Capital Price Capital
30, Value/Share Dividends Distributions Change Level Change
<S> <C> <C> <C> <C> <C> <C> <C>
1985 $15.35 -- -- -- 182 --
1986 17.17 $0.23 $1.88 + 26.7% 231 + 26.9%
1987 20.41 0.23 2.46 + 37.3 322 + 39.4
1988 16.10 0.20 2.38 - 6.8 272 - 15.5
1989 22.30 0.07 0.55 + 43.4 349 + 28.3
1990 14.77 0.16 1.45 - 28.8 306 - 12.3
1991 19.30 0.37 1.35 + 42.6 388 + 26.7
1992 19.12 0.22 0.98 + 4.4 418 + 7.7
1993 23.06 0.10 1.25 + 28.2 459 + 9.8
1994 19.54 -- 2.62 - 4.7 463 + 0.9
1995 22.92 -- 0.73 + 22.0 584 + 26.3
----------------------------------------------------------------------
</TABLE>
Growth of a $10,000 investment
<TABLE>
<CAPTION>
Scudder Capital Growth Fund Standard & Poor's 500 Stock Index
---------------------------------- ----------------------------------
Total Return Total Return
-------------------- --------------------
Years Value of Value of
Ended Initial Initial
September $10,000 Average $10,000 Average
30, 1995 Investment Cumulative Annual Investment Cumulative Annual
+
<S> <C> <C> <C> <C> <C> <C> <C>
One Year $ 12,196 + 21.96% +21.96% $ 12,975 + 29.75% 29.75%
Five
Years 23,060 + 130.60 + 18.19 22,143 + 121.43 + 17.22
Ten Years 40,205 + 302.05 + 14.93 44,259 + 342.59 + 16.03
</TABLE>
All total return calculations assume that income dividends and capital
gains distributions, if any, were reinvested.
The performance of Scudder Capital Growth Fund is compared with that
of Standard & Poor's 500 Stock Index, an unmanaged index of 500
industrial, transportation, utility and financial companies, widely
regarded as representative of the equity market in general. The
Standard & Poor's 500 Stock Index does not take into account the
brokerage and other transaction costs investors incur when investing
directly in stocks on the index. The Fund's performance reflects
actual investment experience, net of all operating expenses, which are
paid from the Fund's gross investment income.
*For definition of "capital change" please see "Distribution and
performance information."
Performance figures are historical and are not intended to indicate
future investment performance.
Additional information about policies and investments
Investment restrictions
The Fund has adopted certain fundamental policies which may not be
changed without a vote of shareholders and which are designed to
reduce the Fund's investment risk.
The Fund may not borrow money except as a temporary measure for
extraordinary or emergency purposes and may not make loans except
through the lending of portfolio securities, the purchase of debt
securities or through repurchase agreements.
As a matter of nonfundamental policy, the Fund may not invest more
than 10% of its total assets, in the aggregate, in securities which
are not readily marketable, in restricted securities and repurchase
agreements maturing in more than seven days. The Fund may invest:
1) for temporary defensive purposes, in debt securities and short term
indebtedness as market or economic conditions may warrant, and
2) up to 20% of its net assets in debt securities when management
anticipates that the capital appreciation on debt securities is likely
to equal or exceed the capital appreciation on common stocks over a
selected time, such as during periods of unusually high interest
rates. As interest rates fall, the prices of debt securities tend to
rise.
A complete description of these and other policies and restrictions is
contained under "Investment Restrictions" in the Fund's combined
Statement of Additional Information.
Debt securities
The Fund may purchase investment-grade debt securities, which are
those rated Aaa, Aa, A or Baa by Moody's Investors Service, Inc.
("Moody's"), or AAA, AA, A or BBB by Standard & Poor's ("S&P") or, if
unrated, of equivalent quality as determined by the Adviser. The Fund
may also purchase debt securities which are rated below
investment-grade. (See "Risk factors.")
Repurchase agreements
As a means of earning income for periods as short as overnight, the
Fund may enter into repurchase agreements with selected banks and
broker/dealers. Under a repurchase agreement, the Fund acquires
securities, subject to the seller's agreement to repurchase them at a
specified time and price.
Convertible securities
The convertible securities in which the Fund may invest consist of
bonds, notes, debentures and preferred stocks which may be converted
or exchanged at a stated or determinable exchange ratio into
underlying shares of common stock.
Prior to their conversion, convertible securities may have
characteristics similar to nonconvertible securities of the same type.
Foreign securities
In addition to investments in companies domiciled in the U.S., the
Fund may invest in listed and unlisted foreign securities that meet
the same criteria as the Fund's domestic holdings. The Fund may invest
in foreign securities when the anticipated performance of foreign
securities is believed by the Adviser to offer more potential than
domestic alternatives in keeping with the investment objective of the
Fund.
Strategic Transactions and derivatives
The Fund may, but is not required to, utilize various other investment
strategies as described below to hedge various market risks (such as
interest rates, currency exchange rates, and broad or specific equity
or fixed-income market movements), to manage the effective maturity or
duration of fixed-income securities in the Fund's portfolio or to
enhance potential gain. These strategies may be executed through the
use of derivative contracts. Such strategies are generally accepted as
a part of modern portfolio management and are regularly utilized by
many mutual funds and other institutional investors. Techniques and
instruments may change over time as new instruments and strategies are
developed or regulatory changes occur.
In the course of pursuing these investment strategies, the Fund may
purchase and sell exchange-listed and over-the-counter put and call
options on securities, equity and fixed-income indices and other
financial instruments, purchase and sell financial futures contracts
and options thereon, enter into various interest rate transactions
such as swaps, caps, floors or collars, and enter into various
currency transactions such as currency forward contracts, currency
futures contracts, currency swaps or options on currencies or currency
futures (collectively, all the above are called "Strategic
Transactions").
Strategic Transactions may be used without limit to attempt to protect
against possible changes in the market value of securities held in or
to be purchased for the Fund's portfolio resulting from securities
markets or currency exchange rate fluctuations, to protect the Fund's
unrealized gains in the value of its portfolio securities, to
facilitate the sale of such securities for investment purposes, to
manage the effective maturity or duration of fixed-income securities
in the Fund's portfolio, or to establish a position in the derivatives
markets as a temporary substitute for purchasing or selling particular
securities. Some Strategic Transactions may also be used to enhance
potential gain although no more than 5% of the Fund's assets will be
committed to Strategic Transactions entered into for non-hedging
purposes. Any or all of these investment techniques may be used at any
time and in any combination, and there is no particular strategy that
dictates the use of one technique rather than another, as use of any
Strategic Transaction is a function of numerous variables including
market conditions. The ability of the Fund to utilize these Strategic
Transactions successfully will depend on the Adviser's ability to
predict pertinent market movements, which cannot be assured. The Fund
will comply with applicable regulatory requirements when implementing
these strategies, techniques and instruments. Strategic Transactions
involving financial futures and options thereon will be purchased,
sold or entered into only for bona fide hedging, risk management or
portfolio management purposes and not for speculative purposes. Please
refer to "Risk factors -- Strategic Transactions and derivatives" for
more information.
Portfolio turnover
Recent economic and market conditions have necessitated more active
trading, resulting in a higher portfolio turnover rate for the Fund. A
higher rate involves greater transaction costs to the Fund and may
result in the realization of net capital gains, which would be taxable
to shareholders when distributed.
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Risk factors
The Fund's risks are determined by the nature of the securities held
and the portfolio management strategies used by the Adviser. The
following are descriptions of certain risks related to the investments
and techniques that the Fund may use from time to time.
Debt securities. The Fund may invest in bonds rated Baa or BBB.
Moody's considers bonds it rates Baa to have speculative elements as
well as investment-grade characteristics. The Fund may also invest up
to 20% of its net assets in debt securities which are rated below
investment-grade, or of equivalent quality as determined by the
Adviser (commonly referred to as "junk bonds"). The lower the ratings
of such debt securities, the greater their risks render them like
equity securities. The Fund will invest no more than 10% of its net
assets in securities rated B or lower by Moody's or S&P, but may
invest in securities rated C by Moody's or D by S&P, which may be in
default with respect to payment of principal or interest. Also, longer
maturity bonds tend to fluctuate more in price as interest rates
change than do short-term bonds, providing both opportunity and risk.
Repurchase agreements. If the seller under a repurchase agreement
becomes insolvent, the Fund's right to dispose of the securities may
be restricted. In the event of the commencement of bankruptcy or
insolvency proceedings of the seller of the securities before
repurchase of the securities under a repurchase agreement, the Fund
may encounter delay and incur costs, including a decline in value of
the securities, before being able to sell the securities.
Convertible securities. While convertible securities generally offer
lower yields than nonconvertible debt securities of similar quality,
their prices may reflect changes in the value of the underlying common
stock. Convertible securities entail less credit risk than the
issuer's common stock.
Illiquid investments. The absence of a trading market can make it
difficult to ascertain a market value for illiquid investments.
Disposing of illiquid investments may involve time-consuming
negotiation and legal expenses, and it may be difficult or impossible
for the Fund to sell them promptly at an acceptable price.
Foreign securities. Investments in foreign securities involve special
considerations, due to more limited information, higher brokerage
costs and different accounting standards. They may also entail certain
risks, such as possible imposition of dividend or interest withholding
or confiscatory taxes, possible currency blockages or transfer
restrictions, expropriation, nationalization or other adverse
political or economic developments and the difficulty of enforcing
obligations in other countries. Foreign securities may be less liquid
and more volatile than comparable domestic securities, and there is
less government regulation of stock exchanges, brokers, listed
companies and banks than in the U.S. Purchases of foreign securities
are usually made in foreign currencies and, as a result, the Fund may
incur currency conversion costs and may be affected favorably or
unfavorably by changes in the value of foreign currencies against the
U.S. dollar.
Strategic Transactions and derivatives. Strategic Transactions,
including derivative contracts, have risks associated with them
including possible default by the other party to the transaction,
illiquidity and, to the extent the Adviser's view as to certain market
movements is incorrect, the risk that the use of such Strategic
Transactions could result in losses greater than if they had not been
used. Use of put and call options may result in losses to the Fund,
force the sale or purchase of portfolio securities at inopportune
times or for prices higher than (in the case of put options) or lower
than (in the case of call options) current market values, limit the
amount of appreciation the Fund can realize on its investments or
cause the Fund to hold a security it might otherwise sell. The use of
currency transactions can result in the Fund incurring losses as a
result of a number of factors including the imposition of exchange
controls, suspension of settlements or the inability to deliver or
receive a specified currency. The use of options and futures
transactions entails certain other risks. In particular, the variable
degree of correlation between price movements of futures contracts and
price movements in the related portfolio position of the Fund creates
the possibility that losses on the hedging instrument may be greater
than gains in the value of the Fund's position. In addition, futures
and options markets may not be liquid in all circumstances and certain
over-the-counter options may have no markets. As a result, in certain
markets, the Fund might not be able to close out a transaction without
incurring substantial losses, if at all. Although the use of futures
contracts and options transactions for hedging should tend to minimize
the risk of loss due to a decline in the value of the hedged position,
at the same time they tend to limit any potential gain which might
result from an increase in value of such position. Finally, the daily
variation margin requirements for futures contracts would create a
greater ongoing potential financial risk than would purchases of
options, where the exposure is limited to the cost of the initial
premium. Losses resulting from the use of Strategic Transactions would
reduce net asset value, and possibly income, and such losses can be
greater than if the Strategic Transactions had not been utilized. The
Strategic Transactions that the Fund may use and some of their risks
are described more fully in the Fund's combined Statement of
Additional Information.
Distribution and performance information
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Dividends and capital gains distributions
The Fund intends to distribute any dividends from its net investment
income and net realized capital gains after utilization of capital
loss carryforwards, if any, annually in December to prevent
application of federal excise tax, although an additional distribution
may be made if required, at a later date. Any dividends or capital
gains distributions declared in October, November or December with a
record date in such a month and paid the following January will be
treated by shareholders for federal income tax purposes as if received
on December 31 of the calendar year declared. According to preference,
shareholders may receive distributions in cash or have them reinvested
in additional shares of the Fund. If an investment is in the form of a
retirement plan, all dividends and capital gains distributions must be
reinvested into the shareholder's account.
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.
The Fund sends detailed tax information about the amount and type of
its distributions to shareholders by January 31 of the following year.
Performance information
From time to time, quotations of the Fund's performance may be
included in advertisements, sales literature or shareholder reports.
All performance figures are historical, show the performance of a
hypothetical investment and are not intended to indicate future
performance. "Total return" is the change in value of an investment in
the Fund for a specified period. The "average annual total return" of
the Fund is the average annual compound rate of return of an
investment in the Fund assuming the investment has been held for one
year, five years and ten years as of a stated ending date. "Cumulative
total return" represents the cumulative change in value of an
investment in the Fund for various periods. All types of total return
calculations assume that all dividends and capital gains distributions
during the period were reinvested in shares of the Fund. "Capital
change" measures return from capital, including reinvestment of any
capital gains distributions but does not include the reinvestment of
dividends. Performance will vary based upon, among other things,
changes in market conditions and the level of the Fund's expenses.
Fund organization
Scudder Capital Growth Fund is a diversified series of Scudder Equity
Trust (the "Trust"), an open-end management investment company
registered under the Investment Company Act of 1940 (the "1940 Act").
The Trust's predecessor was organized as a Delaware corporation in May
1966. The Trust was reorganized as a Massachusetts business trust in
October 1985.
The Fund's activities are supervised by the Trust's Board of Trustees.
Shareholders have one vote for each share held on matters on which
they are entitled to vote. The Trust is not required to hold and has
no current intention of holding annual shareholder meetings, although
special meetings may be called for purposes such as electing or
removing Trustees, changing fundamental investment policies or
approving an investment management contract. Shareholders will be
assisted in communicating with other shareholders in connection with
removing a Trustee as if Section 16(c) of the 1940 Act were
applicable.
Investment adviser
The Fund retains the investment management firm of Scudder, Stevens &
Clark, Inc., a Delaware corporation, to manage the Fund's daily
investment and business affairs subject to the policies established by
the Board of Trustees. The Trustees have overall responsibility for
the management of the Fund under Massachusetts law.
The Adviser receives an investment management fee for these services.
As of September 5, 1996, the Fund pays the Adviser an annual fee of
0.75% of the first $500 million of average daily net assets, 0.65% of
such assets in excess of $500 million, 0.60% of such assets in excess
of $1 billion and 0.55% of such assets in excess of $1.5 billion. The
fee is graduated so that increases in the Fund's net assets may result
in a lower fee and decreases in the Fund's net assets may result in a
higher fee. The fee is payable monthly, provided that the Fund will
make such interim payments as may be requested by the Adviser not to
exceed 75% of the amount of the fee then accrued on the books of the
Fund and unpaid.
Prior to September 5, 1996, the investment management fee was equal,
on an annual basis, to 0.75% of the first $500 million of average
daily net assets, 0.65% of such assets in excess of $500 million and
0.60% of such assets in excess of $1 billion. For the fiscal year
ended September 30, 1995, the Adviser received an investment
management fee of 0.67% of the Fund's average daily net assets on an
annual basis.
All the Fund's expenses are paid out of gross investment income.
Shareholders pay no direct charges or fees for investment or
administrative services.
Scudder, Stevens & Clark, Inc. is located at 345 Park Avenue, New
York, New York.
Transfer agent
Scudder Service Corporation, P.O. Box 2291, Boston, Massachusetts
02107-2291, a subsidiary of the Adviser, is the transfer, shareholder
servicing and dividend-paying agent for the Fund.
Underwriter
Scudder Investor Services, Inc., a subsidiary of the Adviser, is the
Fund's principal underwriter. Scudder Investor Services, Inc.
confirms, as agent, all purchases of shares of the Fund. Scudder
Investor Relations is a telephone information service provided by
Scudder Investor Services, Inc.
Custodian
State Street Bank and Trust Company is the Fund's custodian.
Fund accounting agent
Scudder Fund Accounting Corporation, a subsidiary of the Adviser, is
responsible for determining the daily net asset value per share and
maintaining the general accounting records of the Fund.
Profile|Application Request
Purchases
------------ -----------------------------------------
Opening Minimum initial investment: $1,000; IRAs
an account $500
Group retirement plans (401(k), 403(b),
etc.) have similar or lower minimums.
See appropriate plan literature.
Make checks * By Mail Send your completed and
payable to signed application and
"The check
Scudder
Funds." by regular or by
mail to: express,
registered,
or certified
mail to:
The Scudder
Scudder Shareholder
Funds Services
P.O. Box Center
2291 42 Longwater
Boston, MA Drive
Norwell, MA
02107-2291 02061-1612
* By Wire Please see Transaction
information -- Purchasing
shares -- By wire
following these tables for
details, including the ABA
wire transfer number. Then
call 1-800-225-5163 for
instructions.
* In Person Visit one of our Funds
Centers to complete your
application with the help
of a Scudder
representative. Funds
Center locations are
listed under Shareholder
benefits.
------------ -----------------------------------------
Purchasing Minimum additional investment: $100;
additional IRAs $50
shares
Group retirement plans (401(k), 403(b),
etc.) have similar or lower minimums.
See appropriate plan literature.
Make checks * By Mail Send a check with a
payable to Scudder investment slip,
"The or with a letter of
Scudder instruction including your
Funds." account number and the
complete Fund name, to the
appropriate address listed
above.
* By Wire Please see Transaction
information -- Purchasing
shares -- By wire
following these tables for
details, including the ABA
wire transfer number.
* In Person Visit one of our Funds
Centers to make an
additional investment in
your Scudder fund account.
Funds Center locations are
listed under Shareholder
benefits.
* By Please see Transaction
Telephone information -- Purchasing
shares -- By AutoBuy or By
telephone order for more
details.
* By You may arrange to make
Automatic investments on a regular
Investment basis through automatic
Plan ($50 deductions from your bank
minimum) checking account. Please
call 1-800-225-5163 for
more information and an
enrollment form.
Profile|Application Request
Exchanges and redemptions
----------- ---------------------------------------------------------
Exchanging Minimum investments: $1,000 to establish a new account;
shares $100 to exchange among existing accounts
* By To speak with a service representative,
Telephone call 1-800-225-5163 from 8 a.m. to 8 p.m.
eastern time or to access SAIL(tm),
Scudder's Automated Information Line, call
1-800-343-2890 (24 hours a day).
* By Mail Print or type your instructions and
or Fax include:
- the name of the Fund and the account
number you are exchanging from;
- your name(s) and address as they appear
on your account;
- the dollar amount or number of shares
you wish to exchange;
- the name of the Fund you are exchanging
into; and
- your signature(s) as it appears on your
account and a daytime telephone number.
Send your instructions
by regular or by or by fax to:
mail to: express,
registered,
or certified
mail to:
The Scudder Scudder 1-800-821-6234
Funds Shareholder
P.O. Box Services
2291 Center
Boston, MA 42 Longwater
02107-2291 Drive
Norwell, MA
02061-1612
----------- ------------ -------------------------------------------
Redeeming * By To speak with a service representative,
shares Telephone call 1-800-225-5163 from 8 a.m. to 8 p.m.
eastern time or to access SAIL(tm),
Scudder's Automated Information Line, call
1-800-343-2890 (24 hours a day). You may
have redemption proceeds sent to your
predesignated bank account, or redemption
proceeds of up to $50,000 sent to your
address of record.
* By Mail Send your instructions for redemption to
or Fax the appropriate address or fax number
above and include:
- the name of the Fund and account number
you are redeeming from;
- your name(s) and address as they appear
on your account;
- the dollar amount or number of shares
you wish to redeem; and
- your signature(s) as it appears on your
account and a daytime telephone number.
A signature guarantee is required for
redemptions over $50,000. See Transaction
information -- Redeeming shares following
these tables.
* By You may arrange to receive automatic cash
Automatic payments periodically. Call 1-800-225-5163
Withdrawal for more information and an enrollment
Plan form.
Transaction information
Purchasing shares
Purchases are executed at the next calculated net asset value per
share after the Fund's transfer agent in Boston receives the purchase
request in good order. Purchases are made in full and fractional
shares. (See "Share price.")
By check. If you purchase shares with a check that does not clear,
your purchase will be canceled and you will be subject to any losses
or fees incurred in the transaction. Checks must be drawn on or
payable through a U.S. bank. If you purchase shares by check and
redeem them within seven business days of purchase, the Fund may hold
redemption proceeds until the purchase check has cleared. If you
purchase shares by federal funds wire, you may avoid this delay.
Redemption or exchange requests by telephone prior to the expiration
of the seven-day period will not be accepted.
By wire. To open a new account by wire, first call Scudder at
1-800-225-5163 to obtain an account number. A representative will
instruct you to send a completed, signed application to the transfer
agent in Boston. Accounts cannot be opened without a completed, signed
application and a Scudder fund account number. Contact your bank to
arrange a wire transfer to:
The Scudder Funds
State Street Bank and Trust Company
Boston, MA 02101
ABA Number 011000028
DDA Account 9903-5552
Your wire instructions must also include:
-- the name of the fund in which the money is to be invested,
-- the account number of the fund, and
-- the name(s) of the account holder(s).
The account will be established once the application and money order
are received in good order.
You may also make additional investments of $100 or more to your
existing account by wire.
By telephone order. Existing shareholders may purchase shares at a
certain day's price by calling 1-800-225-5163 before the close of
regular trading on the New York Stock Exchange (the "Exchange"),
normally 4 p.m. eastern time, on that day. Orders must be for $10,000
or more and cannot be for an amount greater than four times the value
of your account at the time the order is placed. A confirmation with
complete purchase information is sent shortly after your order is
received. You must include with your payment the order number given at
the time the order is placed. If payment by check or wire is not
received within three business days, the order is subject to
cancellation and the shareholder will be responsible for any loss to
the Fund resulting from this cancellation. Telephone orders are not
available for shares held in Scudder IRA accounts and most other
Scudder retirement plan accounts.
By "AutoBuy." If you elected "AutoBuy" for your account, you can call
toll-free to purchase shares. The money will be automatically
transferred from your predesignated bank checking account. Your bank
must be a member of the Automated Clearing House for you to use this
service. If you did not elect "AutoBuy," call 1-800-225-5163 for more
information.
To purchase additional shares, call 1-800-225-5163. Purchases must be
for at least $250 but not more than $250,000. Proceeds in the amount
of your purchase will be transferred from your bank checking account
in two or three business days following your call. For requests
received by the close of regular trading on the Exchange, shares will
be purchased at the net asset value per share calculated at the close
of trading on the day of your call. "AutoBuy" requests received after
the close of regular trading on the Exchange will begin their
processing and be purchased at the net asset value calculated the
following business day.
If you purchase shares by "AutoBuy" and redeem them within seven days
of the purchase, the Fund may hold the redemption proceeds for a
period of up to seven business days. If you purchase shares and there
are insufficient funds in your bank account, the purchase will be
canceled and you will be subject to any losses or fees incurred in the
transaction. "AutoBuy" transactions are not available for Scudder IRA
accounts and most other retirement plan accounts.
By exchange. Your new account will have the same registration and
address as your existing account.
The exchange requirements for corporations, other organizations,
trusts, fiduciaries, agents, institutional investors and retirement
plans may be different from those for regular accounts. Please call
1-800-225-5163 for more information, including information about the
transfer of special account features.
You can also make exchanges among your Scudder fund accounts on SAIL,
the Scudder Automated Information Line, by calling 1-800-343-2890.
Redeeming shares
The Fund allows you to redeem shares (i.e., sell them back to the
Fund) without redemption fees.
By telephone. This is the quickest and easiest way to sell Fund
shares. If you elected telephone redemption to your bank on your
application, you can call to request that federal funds be sent to
your authorized bank account. If you did not elect telephone
redemption to your bank on your application, call 1-800-225-5163 for
more information.
Redemption proceeds will be wired to your bank unless otherwise
requested. If your bank cannot receive federal reserve wires,
redemption proceeds will be mailed to your bank. There will be a $5
charge for all wire redemptions.
You can also make redemptions from your Scudder fund account on SAIL,
the Scudder Automated Information Line, by calling 1-800-343-2890.
If you open an account by wire, you cannot redeem shares by telephone
until the Fund's transfer agent has received your completed and signed
application. Telephone redemption is not available for shares held in
Scudder IRA accounts and most other Scudder retirement plan accounts.
In the event that you are unable to reach the Fund by telephone, you
should write to the Fund; see "How to contact Scudder" for the
address.
By "AutoSell." If you elected "AutoSell" for your account, you can
call toll-free to redeem shares. The money will be automatically
transferred to your predesignated bank checking account. Your bank
must be a member of the Automated Clearing House for you to use this
service. If you did not elect "AutoSell," call 1-800-225-5163 for more
information.
To redeem shares, call 1-800-225-5163. Redemptions must be for at
least $250. Proceeds in the amount of your redemption will be
transferred to your bank checking account in two or three business
days following your call. For requests received by the close of
regular trading on the Exchange, shares will be redeemed at the net
asset value per share calculated at the close of trading on the day of
your call. "AutoSell" requests received after the close of regular
trading on the Exchange will begin their processing and be redeemed at
the net asset value calculated the following business day.
"AutoSell" transactions are not available for Scudder IRA accounts and
most other retirement plan accounts.
Signature guarantees. For your protection and to prevent fraudulent
redemptions, on written redemption requests in excess of $50,000 we
require an original signature and an original signature guarantee for
each person in whose name the account is registered. (The Fund
reserves the right, however, to require a signature guarantee for all
redemptions.) You can obtain a signature guarantee from most banks,
credit unions or savings associations, or from broker/dealers,
municipal securities broker/dealers, government securities
broker/dealers, national securities exchanges, registered securities
associations or clearing agencies deemed eligible by the Securities
and Exchange Commission. Signature guarantees by notaries public are
not acceptable. Redemption requirements for corporations, other
organizations, trusts, fiduciaries, agents, institutional investors
and retirement plans may be different from those for regular accounts.
For more information, please call 1-800-225-5163.
Telephone transactions
Shareholders automatically receive the ability to exchange by
telephone and the right to redeem by telephone up to $50,000 to their
address of record. Shareholders also may, by telephone, request that
redemption proceeds be sent to a predesignated bank account. The Fund
uses procedures designed to give reasonable assurance that telephone
instructions are genuine, including recording telephone calls, testing
a caller's identity and sending written confirmation of telephone
transactions. If the Fund does not follow such procedures, it may be
liable for losses due to unauthorized or fraudulent telephone
instructions. The Fund will not be liable for acting upon instructions
communicated by telephone that it reasonably believes to be genuine.
Share price
Purchases and redemptions, including exchanges, are made at net asset
value. Scudder Fund Accounting Corporation determines net asset value
per share as of the close of regular trading on the Exchange, normally
4 p.m. eastern time, on each day the Exchange is open for trading. Net
asset value per share is calculated by dividing the value of total
Fund assets, less all liabilities, by the total number of shares
outstanding.
Processing time
All purchase and redemption requests received in good order by the
Fund's transfer agent in Boston by the close of regular trading on the
Exchange are executed at the net asset value per share calculated at
the close of regular trading that day.
Purchase and redemption requests received after the close of regular
trading on the Exchange will be executed the following business day.
If you wish to make a purchase of $500,000 or more, you should notify
Scudder Investor Relations by calling 1-800-225-5163.
The Fund will normally send your redemption proceeds within one
business day following the redemption request, but may take up to
seven business days (or longer in the case of shares recently
purchased by check).
Short-term trading
Purchases and sales should be made for long-term investment purposes
only. The Fund and Scudder Investor Services, Inc. each reserves the
right to restrict purchases of Fund shares (including exchanges) when
a pattern of frequent purchases and sales made in response to
short-term fluctuations in the Fund's share price appears evident.
Tax information
A redemption of shares, including an exchange into another Scudder
fund, is a sale of shares and may result in a gain or loss for income
tax purposes.
Tax identification number
Be sure to complete the Tax Identification Number section of the
Fund's application when you open an account. Federal tax law requires
the Fund to withhold 31% of taxable dividends, capital gains
distributions and redemption and exchange proceeds from accounts
(other than those of certain exempt payees) without a certified Social
Security or tax identification number and certain other certified
information or upon notification from the IRS or a broker that
withholding is required. The Fund reserves the right to reject new
account applications without a certified Social Security or tax
identification number. The Fund also reserves the right, following 30
days' notice, to redeem all shares in accounts without a certified
Social Security or tax identification number. A shareholder may avoid
involuntary redemption by providing the Fund with a tax identification
number during the 30-day notice period.
Minimum balances
Shareholders should maintain a share balance worth at least $1,000,
which amount may be changed by the Board of Trustees. Scudder
retirement plans have similar or lower minimum share balance
requirements. The Fund reserves the right, following 60 days' written
notice to shareholders, to redeem all shares in sub-minimum accounts,
including accounts of new investors, where a reduction in value has
occurred due to a redemption or exchange out of the account.
Reductions in value that result solely from market activity will not
trigger an involuntary redemption. The Fund will mail the proceeds of
the redeemed account to the shareholder. The shareholder may restore
the share balance to $1,000 or more during the 60-day notice period
and must maintain it at no lower than that minimum to avoid
involuntary redemption.
Third party transactions
If purchases and redemptions of Fund shares are arranged and
settlement is made at an investor's election through a member of the
National Association of Securities Dealers, Inc., other than Scudder
Investor Services, Inc., that member may, at its discretion, charge a
fee for that service.
Redemption-in-kind
The Fund reserves the right, if conditions exist which make cash
payments undesirable, to honor any request for redemption or
repurchase order by making payment in whole or in part in readily
marketable securities chosen by the Fund and valued as they are for
purposes of computing the Fund's net asset value (a
redemption-in-kind). If payment is made in securities, a shareholder
may incur transaction expenses in converting these securities to cash.
The Trust has elected, however, to be governed by Rule 18f-1 under the
1940 Act, as a result of which the Fund is obligated to redeem shares,
with respect to any one shareholder during any 90-day period, solely
in cash up to the lesser of $250,000 or 1% of the net asset value of
the Fund at the beginning of the period.
Profile|Application Request
Shareholder benefits
Experienced professional management
Scudder, Stevens & Clark, Inc., one of the nation's most experienced
investment management firms, actively manages your Scudder fund
investment. Professional management is an important advantage for
investors who do not have the time or expertise to invest directly in
individual securities.
A team approach to investing
Scudder Capital Growth Fund is managed by a team of Scudder investment
professionals who each play an important role in the Fund's management
process. Team members work together to develop investment strategies
and select securities for the Fund's portfolio. They are supported by
Scudder's large staff of economists, research analysts, traders and
other investment specialists who work in Scudder's offices across the
United States and abroad. Scudder believes its team approach benefits
Fund investors by bringing together many disciplines and leveraging
Scudder's extensive resources.
Lead Portfolio Manager Kathleen T. Millard assumed responsibility for
the Fund's day-to-day management in 1995. Ms. Millard, who joined
Scudder in 1991, has been involved in the investment industry since
1983 and has worked as a portfolio manager since 1986. Lois R.
Friedman, Portfolio Manager, joined the Fund in 1995 and Scudder in
1994 and has eight years of experience as an equity analyst.
SAIL(tm) -- Scudder Automated Information Line
For personalized account information including fund prices, yields and
account balances, to perform transactions in existing Scudder fund
accounts, or to obtain information on any Scudder fund, shareholders
can call Scudder's Automated Information Line (SAIL) at
1-800-343-2890, 24 hours a day.
During periods of extreme economic or market changes, or other
conditions, it may be difficult for you to effect telephone
transactions in your account. In such an event you should write to the
Fund; please see "How to contact Scudder" for the address.
Investment flexibility
Scudder offers toll-free telephone exchange between funds at current
net asset value. You can move your investments among money market,
income, growth, tax-free and growth and income funds with a simple
toll-free call or, if you prefer, by sending your instructions through
the mail or by fax. Telephone and fax redemptions and exchanges are
subject to termination and their terms are subject to change at any
time by the Fund or the transfer agent. In some cases, the transfer
agent or Scudder Investor Services, Inc. may impose additional
conditions on telephone transactions.
Dividend reinvestment plan
You may have dividends and distributions automatically reinvested in
additional Fund shares. Please call 1-800-225-5163 to request this
feature.
Shareholder statements
You receive a detailed account statement every time you purchase or
redeem shares. All of your statements should be retained to help you
keep track of account activity and the cost of shares for tax
purposes.
Shareholder reports
In addition to account statements, you receive periodic shareholder
reports highlighting relevant information, including investment
results and a review of portfolio changes.
To reduce the volume of mail you receive, only one copy of most Fund
reports, such as the Fund's Annual Report, may be mailed to your
household (same surname, same address). Please call 1-800-225-5163 if
you wish to receive additional shareholder reports.
Newsletters
Four times a year, Scudder sends you At the Helm, an informative
newsletter covering economic and investment developments, service
enhancements and other topics of interest to Scudder fund investors.
Scudder Funds Centers
As a convenience to shareholders who like to conduct business in
person, Scudder Investor Services, Inc. maintains Funds Centers in
Boca Raton, Boston, Chicago, Cincinnati, Los Angeles, New York,
Portland (OR), San Diego, San Francisco and Scottsdale.
T.D.D. service for the hearing impaired
Scudder's full range of investor information and shareholder services
is available to hearing impaired investors through a toll-free T.D.D.
(Telephone Device for the Deaf) service. If you have access to a
T.D.D., call 1-800-543-7916 for investment information or specific
account questions and transactions.
Scudder tax-advantaged retirement plans
Scudder offers a variety of tax-advantaged retirement plans for
individuals, businesses and non-profit organizations. These flexible
plans are designed for use with the Scudder Family of Funds (except
Scudder tax-free funds, which are inappropriate for such plans).
Scudder Funds offer a broad range of investment objectives and can be
used to seek almost any investment goal. Using Scudder's retirement
plans can help shareholders save on current taxes while building their
retirement savings.
o Scudder No-Fee IRAs. These retirement plans allow a maximum
annual contribution of $2,000 per person for anyone with earned
income. Many people can deduct all or part of their contributions
from their taxable income, and all investment earnings accrue on
a tax deferred basis. The Scudder No-Fee IRA charges no annual
custodial fee.
o 401(k) Plans. 401(k) plans allow employers and employees to make
tax-deductible retirement contributions. Scudder offers a full
service program that includes recordkeeping, prototype plan,
employee communications and trustee services, as well as
investment options.
o Profit Sharing and Money Purchase Pension Plans. These plans
allow corporations, partnerships and people who are self-employed
to make annual, tax-deductible contributions of up to $30,000 for
each person covered by the plans. Plans may be adopted
individually or paired to maximize contributions. These are
sometimes known as Keogh plans.
o 403(b) Plans. Retirement plans for tax-exempt organizations and
school systems to which employers and employees may both
contribute.
o SEP-IRAs. Easily administered retirement plans for small
businesses and self-employed individuals. The maximum annual
contribution to SEP-IRA accounts is adjusted each year for
inflation.
o Scudder Horizon Plan. A no-load variable annuity that lets you
build assets by deferring taxes on your investment earnings. You
can start with $2,500 or more.
Scudder Trust Company (an affiliate of the Adviser) is Trustee or
Custodian for some of these plans and is paid an annual fee for some
of the above retirement plans. For information about establishing a
Scudder No-Fee IRA, SEP-IRA, Profit Sharing Plan, Money Purchase
Pension Plan or a Scudder Horizon Plan, please call 1-800-225-2470.
For information about 401(k)s or 403(b)s please call 1-800-323-6105.
To effect transactions in existing IRA, SEP-IRA, Profit Sharing or
Pension Plan accounts, call 1-800-225-5163.
The variable annuity contract is provided by Charter National Life
Insurance Company (in New York State, Intramerica Life Insurance
Company [S 1802]). The contract is offered by Scudder Insurance
Agency, Inc. (in New York State, Nevada and Montana, Scudder Insurance
Agency of New York, Inc.). CNL, Inc. is the Principal Underwriter.
Scudder Horizon Plan is not available in all states.
Trustees and Officers
Daniel Pierce*
President and Trustee
Paul Bancroft III
Trustee; Venture Capitalist and Consultant
Sheryle J. Bolton
Trustee; Consultant
Thomas J. Devine
Trustee; Consultant
Keith R. Fox
Trustee; President, Exeter Capital Management Corporation
David S. Lee*
Vice President and Trustee
Douglas M. Loudon*
Vice President and Trustee
Dr. Wilson Nolen
Trustee; Consultant
Juris Padegs*
Vice President and Trustee
Dr. Gordon Shillinglaw
Trustee; Professor Emeritus of Accounting, Columbia University
Graduate School of Business
Robert W. Lear
Honorary Trustee; Executive-in-Residence, Columbia University Graduate
School of Business
Robert G. Stone, Jr.
Honorary Trustee; Chairman of the Board and Director, Kirby
Corporation
Donald E. Hall*
Vice President
Jerard K. Hartman*
Vice President
Thomas W. Joseph*
Vice President
Kathleen T. Millard*
Vice President
Thomas F. McDonough*
Vice President, Secretary and Assistant Treasurer
Pamela A. McGrath*
Vice President and Treasurer
Edward J. O'Connell*
Vice President and Assistant Treasurer
Kathryn L. Quirk*
Vice President and Assistant Secretary
Coleen Downs Dinneen*
Assistant Secretary
*Scudder, Stevens & Clark, Inc.
Investment products and services
The Scudder Family of Funds
Money market
Scudder Cash Investment Trust
Scudder U.S. Treasury Money Fund
Tax free money market+
Scudder Tax Free Money Fund
Scudder California Tax Free Money Fund*
Scudder New York Tax Free Money Fund*
Tax free+
Scudder California Tax Free Fund*
Scudder High Yield Tax Free Fund
Scudder Limited Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder Massachusetts Limited Term Tax Free Fund*
Scudder Massachusetts Tax Free Fund*
Scudder Medium Term Tax Free Fund
Scudder New York Tax Free Fund*
Scudder Ohio Tax Free Fund*
Scudder Pennsylvania Tax Free Fund*
Income
Scudder Emerging Markets Income Fund
Scudder Global Bond Fund
Scudder GNMA Fund
Scudder Income Fund
Scudder International Bond Fund
Scudder Short Term Bond Fund
Scudder Zero Coupon 2000 Fund
Growth and Income
Scudder Balanced Fund
Scudder Growth and Income Fund
Growth
Scudder Capital Growth Fund
Scudder Development Fund
Scudder Global Fund
Scudder Global Small Company Fund
Scudder Gold Fund
Scudder Greater Europe Growth Fund
Scudder International Fund
Scudder Latin America Fund
Scudder Pacific Opportunities Fund
Scudder Quality Growth Fund
Scudder Small Company Value Fund
Scudder Value Fund
The Japan Fund
----------------------------------------------------------------------
Retirement Plans and Tax-Advantaged Investments
IRAs
Keogh Plans
Scudder Horizon Plan*+++ (a variable annuity)
401(k) Plans
403(b) Plans
SEP-IRAs
Profit Sharing and Money Purchase Pension Plans
----------------------------------------------------------------------
Closed-end Funds#
The Argentina Fund, Inc.
The Brazil Fund, Inc.
The First Iberian Fund, Inc.
The Korea Fund, Inc.
The Latin America Dollar Income Fund, Inc.
Montgomery Street Income Securities, Inc.
Scudder New Asia Fund, Inc.
Scudder New Europe Fund, Inc.
Scudder World Income Opportunities Fund, Inc.
----------------------------------------------------------------------
Institutional Cash Management
Scudder Institutional Fund, Inc.
Scudder Fund, Inc.
Scudder Treasurers Trust(tm)++
----------------------------------------------------------------------
For complete information on any of the above Scudder funds, including
management fees and expenses, call or write for a free prospectus.
Read it carefully before you invest or send money. +A portion of the
income from the tax-free funds may be subject to federal, state and
local taxes. *Not available in all states. +++A no-load variable
annuity contract provided by Charter National Life Insurance Company
and its affiliate, offered by Scudder's insurance agencies,
1-800-225-2470. #These funds, advised by Scudder, Stevens & Clark,
Inc., are traded on various stock exchanges. ++For information on
Scudder Treasurers Trust(tm), an institutional cash management service
that utilizes certain portfolios of Scudder Fund, Inc. ($100,000
minimum), call: 1-800-541-7703.
How to contact Scudder
Account Service and Information:
For existing account service and transactions
Scudder Investor Relations
1-800-225-5163
For personalized information about your Scudder accounts;
exchanges and redemptions; or information on any Scudder fund
Scudder Automated Information Line (SAIL)
1-800-343-2890
Please address all correspondence to:
The Scudder Funds
P.O. Box 2291
Boston, Massachusetts
02107-2291
Investment Information:
To receive information about the Scudder funds, for additional
applications and prospectuses, or for investment questions
Scudder Investor Relations
1-800-225-2470
For establishing 401(k) and 403(b) plans
Scudder Defined Contribution Services
1-800-323-6105
Or Stop by a Scudder Funds Center:
Many shareholders enjoy the personal, one-on-one service of the
Scudder Funds Centers. Check for a Funds Center near you -- they
can be found in the following cities:
Boca Raton
Boston
Chicago
Cincinnati
Los Angeles
New York
Portland, OR
San Diego
San Francisco
Scottsdale
For information on Scudder Treasurers Trust(tm), an institutional cash
management service for corporations, non-profit organizations and
trusts which utilizes certain portfolios of Scudder Fund, Inc.*
($100,000 minimum), call: 1-800-541-7703.
For information on Scudder Institutional Funds*, funds designed to
meet the broad investment management and service needs of banks and
other institutions, call: 1-800-854-8525.
Scudder Investor Relations and Scudder Funds Centers are services
provided through Scudder Investor Services, Inc., Distributor.
* Contact Scudder Investor Services, Inc., Distributor, to receive a
prospectus with more complete information, including management fees
and expenses. Please read it carefully before you invest or send
money.
----------------------------------------------------------------------
Contact Scudder
