Scudder
Value Fund
Semiannual Report
March 31, 1996
o For investors seeking long-term growth of capital through investment in
undervalued equity securities.
o A pure no-load(TM) fund with no commissions to buy, sell, or exchange
shares. This information must be preceded or accompanied by a current
prospectus. Portfolio changes should not be considered recommendations for
action by individual investors.
This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
<PAGE>
SCUDDER VALUE FUND
CONTENTS
2 In Brief
3 Letter from the Fund's President
4 Performance Update
5 Portfolio Summary
6 Portfolio Management Discussion
9 Investment Portfolio
14 Financial Statements
17 Financial Highlights
18 Notes to Financial Statements
25 Officers and Trustees
26 Investment Products and Services
27 How to Contact Scudder
IN BRIEF
o Scudder Value Fund provided a 10.16% total return for the six-month period
ended March 31, 1996, aided by strong performance from the Fund's holdings
in financial stocks.
o The Fund's return surpassed the 7.92% return on average for the 630 growth
funds tracked by Lipper Analytical Services.
o The Fund continues to employ a rigorous value-oriented approach to stock
selection, emphasizing below-average price/earnings ratios combined with
positive momentum in earnings revisions.
Cheaper Than The Market
(Average Price/Earnings Ratios based on Est. 1996 Earnings)
(Data from Bar Chart)
----------------------------------------------------------
Scudder Value Fund S&P 500 Index
----------------------------------------------------------
12.4 19.6
----------------------------------------------------------
2
<PAGE>
LETTER FROM THE FUND'S PRESIDENT
Dear Shareholders,
Scudder Value Fund continued its record of strong performance in the first
half of its 1996 fiscal year. By achieving a total return of more than 10%, the
Fund surpassed the average of its peers, according to Lipper. The Fund has grown
as well, to more than $80 million, representing over 8,300 shareholder accounts.
The sharp decline in the Dow Jones Industrial Average on March 8 is
testimony to the market's current sensitivity to rising interest rates. With the
aging U.S. economic expansion winding down, investors have been counting on
lower interest rates to keep corporate profits healthy. The
stronger-than-expected February employment report signaled that the Federal
Reserve could hold off reducing short-term interest rates in order to stimulate
economic activity. Although the market subsequently recovered, price volatility
on this scale may become more prevalent in the coming months as data emerges on
the health of the U.S. economy.
Traditionally, Scudder Value Fund has thrived in this sort of market. The
Fund seeks long-term capital appreciation by investing in stocks trading below
their estimated worth. This type of investment opportunity often happens during
periods of market volatility, when investors sell stocks indiscriminately and
without regard for potential earnings.
In closing, we would like to take this opportunity to announce that on May
8, 1996, we introduced an exciting addition to the Scudder family of funds:
Scudder Emerging Markets Growth Fund. The Fund is designed to provide long-term
growth of capital by investing primarily in the Pacific Rim, Latin America,
Eastern Europe, and other developing regions of the world. For more information
about Scudder Emerging Markets Growth Fund and other Scudder products and
services, please see page 26. For questions about Scudder Value Fund, please
call a Scudder Investor Relations representative at 1-800-225-2470. Thank you
for your continued interest.
Sincerely,
/s/Daniel Pierce
Daniel Pierce
President,
Scudder Value Fund
3
<PAGE>
SCUDDER VALUE FUND
PERFORMANCE UPDATE as of March 31, 1996
- -----------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- -----------------------------------------------------------------
SCUDDER VALUE FUND
- ----------------------------------------
Total Return
Period Growth --------------
Ended of Average
3/31/96 $10,000 Cumulative Annual
- -------- ------- ---------- ------
1 Year $12,818 28.18% 28.18%
Life of
Fund* $15,470 54.70% 14.37%
S&P 500 INDEX
- --------------------------------------
Total Return
Period Growth --------------
Ended of Average
3/31/96 $10,000 Cumulative Annual
- -------- ------- ---------- ------
1 Year $13,210 32.10% 32.10%
Life of
Fund* $16,168 61.68% 15.96%
*The Fund commenced operations on
December 31, 1992.
A chart in the form of a line graph appears here,
illustrating the Growth of a $10,000 Investment.
The data points from the graph are as follows:
Scudder Value Fund
Year Amount
- ----------------------
12/92* $10,000
3/93 $10,933
9/93 $11,150
3/94 $10,830
9/94 $11,360
3/95 $12,070
9/95 $14,043
3/96 $15,470
S&P 500 Index
Year Amount
- ----------------------
12/92* $10,000
3/93 $10,437
9/93 $10,758
3/94 $10,590
9/94 $11,155
3/95 $12,239
9/95 $14,473
3/96 $16,168
The Standard & Poor's (S&P) 500 Index is an unmanaged capitalization-
weighted measure of 500 widely held common stocks listed on the
New York Stock Exchange, American Stock Exchange, and Over-The-Counter
market. Index returns assume reinvestment of dividends and, unlike
Fund returns, do not reflect any fees or expenses.
- -----------------------------------------------------------------
RETURNS AND PER SHARE INFORMATION
- -----------------------------------------------------------------
A chart in the form of a bar graph appears here,
illustrating the Fund Total Return (%) and Index Total
Return (%) with the exact data points listed in the table
below.
YEARLY PERIODS ENDED MARCH 31
1993* 1994 1995 1996
-------------------------------------
NET ASSET VALUE... $13.12 $12.47 $13.64 $16.48
INCOME DIVIDENDS.. $ -- $ .11 $ .12 $ .04
CAPITAL GAINS
DISTRIBUTIONS..... $ -- $ .43 $ .13 $ .92
FUND TOTAL
RETURN (%)........ 9.33 -.94 11.44 28.18
INDEX TOTAL
RETURN (%)........ 4.37 1.48 15.57 32.10
All performance is historical, assumes reinvestment of all dividends and
capital gains, and is not indicative of future results.
Investment return and principal value will fluctuate, so an investor's
shares, when redeemed, may be worth more or less than when purchased. If
the Adviser had not maintained the Fund's expenses, the average annual
total return for the one year and life of Fund periods would have been lower.
4
<PAGE>
PORTFOLIO SUMMARY as of March 31, 1996
- ---------------------------------------------------------------------------
DIVERSIFICATION
- ---------------------------------------------------------------------------
Equity Securities 94%
Cash Equivalents 6%
----
100%
====
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- --------------------------------------------------------------------------
SECTORS (Excludes 6% Cash Equivalents)
- --------------------------------------------------------------------------
Financial 20%
Manufacturing 13%
Technology 12%
Energy 9% THE FINANCIAL SECTOR WAS THE
Consumer Staples 8% PRIMARY DRIVER OF FUND
Communications 7% PERFORMANCE DURING THE
Service Industries 6% PERIOD.
Consumer Discretionary 5%
Health 5%
Other 15%
----
100%
====
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- --------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS
- --------------------------------------------------------------------------
1. STERLING SOFTWARE INC.
Computer software products
2. PHILIP MORRIS COMPANIES INC.
Tobacco, food products and brewing
3. TRW INC.
Defense electronics, automotive parts and systems
4. TELE DANMARK A/S
Telecommunication services
5. APPLIED MATERIALS, INC.
Producer of reactors used to manufacture thin film
6. MBIA INC.
Insurer of municipal bonds
7. ATMEL CORP.
Developer and manufacturer of integrated circuits
8. POWERGEN PLC
Electric utility in the United Kingdom
9. REPSOL SA
Integrated oil company
10. UNUM CORP.
Provider of disability, health and life insurance
and group pension products
STERLING SOFTWARE, THE FUND'S LARGEST HOLDING, GAINED 55% DURING
THE PERIOD.
- -----------------------------------------------------------------------
For more complete details about the Fund's Investment Portfolio,
see page 9.
A monthly Investment Portfolio Summary and quarterly Portfolio Holdings
are available upon request.
5
<PAGE>
SCUDDER VALUE FUND
PORTFOLIO MANAGEMENT DISCUSSION
Dear Shareholders,
U.S. stock market performance was strong for most of the six months ended
March 31, 1996, despite sputtering profit growth and rising interest rates on
bonds. Stocks benefited from corporate share buyback activity in an environment
of slowing economic growth. Scudder Value Fund provided a total return of 10.16%
for the period, compared with 7.92% on average for the 630 growth funds tracked
by Lipper Analytical Services.
The Fund's large financial sector position was the primary performance
engine over the period. Returns in excess of 20% were registered by holdings in
BankAmerica, Mellon Bank, State Street Boston, and Federal National Mortgage.
The Fund's financial stocks held up particularly well in the face of higher
long-term interest rates, which rose some 0.75% on the back of February's
stronger-than-expected employment report. Other holdings that performed well
included those in the auto-related sector (TRW up 20% during the period),
airlines (AMR up 24%), and pharmaceuticals (Eli Lilly up 45%). We later
eliminated our position in Eli Lilly as it reached our price target, leaving the
Fund essentially out of pharmaceuticals.
Technology stocks were mixed. Sterling Software, a top holding for the
Fund, was up 55%; but Intel, also an important holding, declined 5%.
Underperformers during the period included utilities Unicom and Destec, as well
as foreign holdings Philips NV and Tele Danmark.
The Fund failed to keep pace with the unmanaged S&P 500 Index during the
period largely due to the strong performance of a few very large stocks, which
drove the index higher than the broader market. Also, the Fund held some cash
reserves (6.1% of the portfolio at the end of March) which did not participate
in the market's strength. Finally, the Fund's foreign holdings generally lagged
the U. S. market in the final months of 1995 but have been more of a positive
factor recently.
6
<PAGE>
PORTFOLIO MANAGEMENT DISCUSSION
The Fund's Investment Strategy in Review
Scudder Value Fund employs an investment approach that is both quantitative
and fundamental. Computer-driven quantitative techniques have the advantage of
objectivity and efficiency. Traditional fundamental analysis provides a rich
understanding of potential investments. The goal is to exploit the advantages of
both techniques, increasing our odds of success through quantitative statistics
while leveraging the occasional special insight. In practice, the quantitative
tools narrow the list of purchase candidates. We then affirm or refute
assumptions about stocks that appear to have interesting valuations.
The quintessential "value" stock in our opinion belongs to a company with
average growth, average risk, and for one reason or another a price/earnings
ratio at least 20% below that of the overall stock market. (The price-to-book
ratio will tend to be less than the market as well.) Some current "bread and
butter" names for the Fund include Federal National Mortgage, Philip Morris,
MBIA, Chemical Bank, Repsol, and TRW.
Established companies are preferred. These are not necessarily large
companies, but companies that have been around long enough to forge an
understanding of the business in good times and bad. Virtually all stocks today
trade at a premium over book value, meaning the market has assigned a value to
the intangible franchise and intellectual capital. The franchise is worth more
if well established; the intellectual capital is worth more, all other factors
being equal, if experienced.
In our view, turnaround stories--where a company's prospects and stock
price appear poised to improve after a prolonged period of decline--are
attractive only if there is concrete evidence that a turn is underway. The
announcement of a new business strategy may be enough if the strategy is
financial in nature, such as a restructuring or stock buyback. Many turnarounds
can occur with new management, although individuals brought in to improve
operations will have to prove themselves before we're convinced.
7
<PAGE>
SCUDDER VALUE FUND
Looking Forward
The U.S. stock market benefited from a confluence of favorable factors in
1995. Corporate profits grew at above-average rates, and interest rates fell
sharply. In addition, there was heavy demand for stocks by equity mutual funds
and corporations buying back shares. In 1996, we expect corporate profit growth
to slow considerably. Another potential headwind for stocks is the risk of
rising interest rates. Offsetting these potentially negative factors has been
the continuation of the favorable supply/demand dynamic that existed in 1995.
The overall supply of equities has declined for several quarters, reminiscent of
the large buyback era of the mid-to-late 1980's. These crosscurrents will no
doubt make for a choppier market and may provide opportunity for a disciplined,
value-oriented approach.
Sincerely,
Your Portfolio Management Team
/s/Donald E. Hall /s/William J. Wallace
Donald E. Hall William J. Wallace
8
<PAGE>
<TABLE>
INVESTMENT PORTFOLIO as of March 31, 1996 (Unaudited)
- ------------------------------------------------------------------------------------------------
<CAPTION>
%of Principal Market
Portfolio Amount ($) Value($)
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
----------------------------------------------------------------
6.1% REPURCHASE AGREEMENT
----------------------------------------------------------------
4,904,000 Repurchase Agreement with UBS Securities
Inc. dated 3/29/96 at 5.3% to be repurchased
at $4,906,166 on 4/1/96, collateralized by
a $4,895,000 U.S. Treasury Note,
6.25%, 5/31/00 (Cost $4,904,000) ..... 4,904,000
---------
----------------------------------------------------------------
0.5% CONVERTIBLE BONDS
----------------------------------------------------------------
MEDIA
Cable Television 1,250,000 Rogers Communications Inc., LYON, 5/20/13
(Cost $509,825) ...................... 445,313
---------
----------------------------------------------------------------
0.4% CONVERTIBLE PREFERRED STOCKS
----------------------------------------------------------------
Shares
----------------------------------------------------------------
FINANCIAL
Other Financial Companies 12,200 California Federal Bank "A" Non-Cum. 7.75%
(Cost $253,628) ...................... 317,200
---------
----------------------------------------------------------------
93.0% COMMON STOCKS
----------------------------------------------------------------
CONSUMER DISCRETIONARY 4.9%
Department &
Chain Stores 2.5% 7,400 J.C. Penney Co., Inc. ................. 368,150
8,400 May Department Stores ................. 405,300
15,300 Rite Aid Corp. ........................ 472,388
32,300 Wal-Mart Stores Inc. .................. 746,938
---------
1,992,776
---------
Hotels & Casinos 1.9% 23,100 Grand Casinos Inc.* ................... 693,000
36,300 Royal Caribbean Cruises Ltd. .......... 884,813
---------
1,577,813
---------
Specialty Retail 0.5% 14,700 Toys "R" Us Inc.* ..................... 396,900
---------
CONSUMER STAPLES 7.2%
Alcohol & Tobacco 3.0% 27,800 Philip Morris Companies Inc. .......... 2,439,450
---------
Food & Beverage 4.2% 24,200 ConAgra Inc. .......................... 983,125
23,400 Dole Food Co. ......................... 900,900
45,700 Sara Lee Corp. ........................ 1,490,953
---------
3,374,978
---------
</TABLE>
The accompany notes are an integral part of the financial statements.
9
<PAGE>
SCUDDER VALUE FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
%of Principal Market
Portfolio Amount ($) Value($)
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
HEALTH 4.5%
Health Industry Services 1.1% 33,900 Bergen Brunswig Corp. "A" ............. 885,638
---------
Hospital Management 0.7% 26,100 Tenet Healthcare Corp.* ............... 548,100
---------
Medical Supply & Specialty 1.8% 10,500 Bausch & Lomb, Inc. ................... 388,500
13,100 Becton, Dickinson & Co. ............... 1,072,563
---------
1,461,063
---------
Pharmaceuticals 0.9% 10,000 Astra AB "A" (Free) ................... 462,496
4,900 Schering-Plough Corp. ................. 284,813
---------
747,309
---------
COMMUNICATIONS 6.7%
Telephone/Communications 19,000 American Telephone & Telegraph Co. .... 1,163,750
44,200 Century Telephone Enterprises ......... 1,403,350
18,900 Royal PTT Nederland NV (ADR)* ......... 746,550
80,600 Tele Danmark A/S (ADR) ................ 2,085,525
---------
5,399,175
---------
FINANCIAL 18.2%
Banks 8.3% 11,400 BankAmerica Corp. ..................... 883,500
6,800 Bankers Trust New York Corp. .......... 481,950
6,000 Chemical Banking Corp. ................ 423,000
5,100 Citicorp .............................. 408,000
9,200 First Chicago NBD Corp. ............... 381,800
7,600 J.P. Morgan & Co., Inc. ............... 630,800
25,300 Mellon Bank Corp. ..................... 1,394,663
15,300 National Australia Bank Ltd. (ADR) .... 684,675
27,800 State Street Boston Corp. ............. 1,390,000
---------
6,678,388
---------
Insurance 8.6% 34,200 Allstate Corp. ........................ 1,440,675
20,700 EXEL, Ltd. ............................ 1,428,300
24,000 MBIA Inc. ............................. 1,800,000
24,600 PartnerRe Holdings Ltd. ............... 731,850
25,100 UNUM Corp. ............................ 1,493,450
---------
6,894,275
---------
Other Financial
Companies 1.3% 25,600 Federal National Mortgage Association . 816,000
3,000 Student Loan Marketing Association .... 229,500
---------
1,045,500
---------
MEDIA 1.1%
Broadcasting &
Entertainment 0.9% 17,800 Time Warner Inc. ...................... 727,575
---------
Cable Television 0.2% 13,909 Rogers Communications Inc. "B" ........ 126,260
---------
</TABLE>
The accompany notes are an integral part of the financial statements.
10
<PAGE>
INVESTMENT PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
%of Principal Market
Portfolio Amount ($) Value($)
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SERVICE INDUSTRIES 5.8%
Environmental Services 3.0% 101,700 Destec Energy Inc.* ................... 1,258,538
71,200 Wheelabrator Technologies Inc. ........ 1,183,700
---------
2,442,238
---------
Investment 0.8% 6,100 Dean Witter, Discover & Co. ........... 349,225
8,300 Donaldson, Lufkin & Jenrette
Securities Corp. ..................... 278,050
---------
627,275
---------
Miscellaneous Commercial
Services 0.5% 18,100 Sensormatic Electronics Corp. ......... 366,525
---------
Miscellaneous Consumer
Services 0.3% 6,700 H&R Block Inc. ........................ 242,038
---------
Printing/Publishing 1.2% 30,700 Deluxe Corp. .......................... 963,213
---------
DURABLES 4.3%
Aerospace 0.8% 3,749 Lockheed Martin Corp. ................. 284,455
3,300 United Technologies Corp. ............. 370,425
---------
654,880
---------
Automobiles 1.7% 2,000 Chrysler Corp. ........................ 124,500
24,100 Ford Motor Co. ........................ 828,438
8,600 Genuine Parts Co. ..................... 387,000
---------
1,339,938
---------
Construction/Agricultural
Equipment 0.5% 8,100 PACCAR, Inc. .......................... 394,875
---------
Telecommunications
Equipment 0.4% 10,400 Nokia AB Oy (ADR) ..................... 356,200
---------
Tires 0.9% 28,700 Cooper Tire & Rubber Co. .............. 739,025
---------
MANUFACTURING 12.2%
Chemicals 0.8% 11,300 Sigma-Aldrich Corp. ................... 646,925
---------
Containers & Paper 1.4% 18,200 Boise Cascade Corp. ................... 764,400
8,000 Champion International Corp. .......... 362,000
---------
1,126,400
---------
Diversified Manufacturing 3.4% 27,000 Canadian Pacific Ltd. (Ord.) .......... 537,227
1,000 Schindler Holdings AG Warrants
(expire 12/16/96)* ................... 3,784
24,700 TRW Inc. .............................. 2,201,388
---------
2,742,399
---------
Electrical Products 2.7% 9,300 Emerson Electric Co. .................. 750,975
8,600 Mabuchi Motor Co., Ltd. ............... 489,705
24,900 Philips NV (New York shares) .......... 905,738
---------
2,146,418
---------
Industrial Specialty 1.5% 1,000 Schindler Holdings AG (PC) ............ 1,198,285
---------
</TABLE>
The accompany notes are an integral part of the financial statements.
11
<PAGE>
SCUDDER VALUE FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
%of Principal Market
Portfolio Amount ($) Value($)
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Machinery/Components/
Controls 0.4% 9,700 Parker-Hannifin Group ............... 363,750
---------
Office Equipment/
Supplies 1.5% 9,800 Xerox Corp. ......................... 1,229,900
---------
Specialty Chemicals 0.5% 7,900 Betz Laboratories Inc. .............. 367,350
---------
TECHNOLOGY 11.8%
Computer Software 3.2% 36,200 Sterling Software Inc.* ............. 2,552,100
---------
Diverse Electronic
Products 2.5% 57,200 Applied Materials, Inc.* ............ 1,994,850
---------
EDP Peripherals 1.3% 20,700 Intergraph Corp.* ................... 331,200
26,000 Storage Technology Corp.* ........... 679,250
---------
1,010,450
---------
Electronic Data Processing 0.4% 3,000 International Business Machines Corp. 333,375
---------
Precision Instruments 1.3% 43,100 Silicon Valley Group Inc.* .......... 1,050,563
---------
Semiconductors 3.1% 63,900 Atmel Corp.* ........................ 1,629,450
14,500 Integrated Packaging Assembly Corp.* 137,750
13,500 Intel Corp. ......................... 767,813
---------
2,535,013
---------
ENERGY 8.6%
Oil Companies 16,400 Amoco Corp. ......................... 1,184,900
18,000 Exxon Corp. ......................... 1,469,250
6,700 Mobil Corp. ......................... 776,363
40,300 Repsol SA (ADR) ..................... 1,506,213
39,203 Total SA (ADR) ...................... 1,332,902
30,800 YPF S.A. "D" (ADR) .................. 619,850
---------
6,889,478
---------
METALS & MINERALS 0.5%
Steel & Metals 7,000 Nucor Corp. ......................... 413,875
---------
CONSTRUCTION 0.4%
Forest Products 11,900 Louisiana-Pacific Corp. ............. 290,063
---------
TRANSPORTATION 3.5%
Airlines 1.8% 10,700 AMR Corp.* .......................... 957,650
19,100 Alaska Air Group Inc.* .............. 510,925
---------
1,468,575
---------
Marine Transportation 1.4% 94,000 Nedlloyd Groep NV (Sponsored ADR) .... 987,000
5,800 Teekay Shipping Corp. ................ 151,525
---------
1,138,525
---------
Railroads 0.3% 12,800 Canadian National Railway Co. ........ 220,800
---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
INVESTMENT PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
%of Principal Market
Portfolio Amount ($) Value($)
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
UTILITIES 3.3%
Electric Utilities 46,400 PowerGen PLC (ADR) ............................ 1,542,800
25,200 Public Service Co. of New Mexico* ............. 469,350
18,500 TNP Enterprises Inc. .......................... 427,813
9,200 Unicom Corp. .................................. 248,400
----------
2,688,363
----------
TOTAL COMMON STOCKS
(Cost $65,923,248) .......................... 74,828,864
----------
================================================================================================
TOTAL INVESTMENT PORTFOLIO -- 100.0%
(Cost $71,590,701) (a) ...................... 80,495,377
==========
</TABLE>
(a) The cost for federal income tax purposes was $71,593,064. At March 31,
1996, net unrealized appreciation for all securities based on tax cost was
$8,902,313. This consisted of aggregate gross unrealized appreciation for
all securities in which there was an excess of market value over tax cost
of $10,452,689 and aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over market value of
$1,550,376.
* Non-income producing security.
<TABLE>
Transactions in written call options during the six months ended March 31, 1996 were:
<CAPTION>
PREMIUMS
NUMBER OF CONTRACTS RECEIVED ($)
---------------------------------------------
<S> <C> <C>
Outstanding at
September 30, 1995 200 91,897
Contracts closed (200) (91,897)
---------------------------------------------
Outstanding at
March 31, 1996 -- --
---- -------
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
SCUDDER VALUE FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
<TABLE>
------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
------------------------------------------------------------------------------
<CAPTION>
MARCH 31, 1996 (UNAUDITED)
------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at market (identified cost $71,590,701)
(Note A) ........................................... $80,495,377
Cash ................................................. 9,614
Receivables:
Investments sold ................................... 859,763
Dividends and interest ............................. 127,236
Fund shares sold ................................... 255,623
Foreign taxes recoverable .......................... 19,438
Deferred organization expense (Note A) ............... 20,375
-----------
Total assets ..................................... 81,787,426
LIABILITIES
Payables:
Investments purchased .............................. $931,397
Fund shares redeemed ............................... 9,447
Accrued management fee (Note C) .................... 54,533
Other accrued expenses (Note C) .................... 57,764
--------
Total liabilities ................................ 1,053,141
-----------
Net assets, at market value .......................... $80,734,285
===========
NET ASSETS
Net assets consist of:
Undistributed net investment income ................ $ 362,798
Unrealized appreciation (depreciation) on:
Investments ...................................... 8,904,676
Foreign currency related transactions ............ (102)
Accumulated net realized gain ...................... 3,750,510
Shares of beneficial interest ...................... 48,991
Additional paid-in capital ......................... 67,667,412
-----------
Net assets, at market value .......................... $80,734,285
===========
NET ASSET VALUE, offering and redemption price per
share ($80,734,285 [divide by] 4,899,094 outstanding
shares of beneficial interest, $.01 par value,
unlimited number of shares authorized) ............. $ 16.48
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends (net of foreign taxes withheld of
$23,801) ......................................... $ 799,063
Interest ........................................... 98,388
----------
897,451
Expenses:
Management fee (Note C) ............................ $ 257,792
Services to shareholders (Note C) .................. 112,607
Custodian and accounting fees (Note C) ............. 26,957
Trustees' fees (Note C) ............................ 21,109
Reports to shareholders ............................ 22,554
Registration ....................................... 11,951
Auditing ........................................... 17,700
Legal .............................................. 3,447
Amortization of organization expense (Note A) ...... 4,478
Other .............................................. 8,674
----------
Total expenses before reductions ................... 487,269
Management fee reduction (Note C) .................. (26,498)
----------
Expenses, net ...................................... 460,771
----------
Net investment income .............................. 436,680
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT TRANSACTIONS
Net realized gain from:
Investments ...................................... 5,090,998
Options .......................................... 80,047
Futures .......................................... 45,160
Foreign currency related transactions ............ 1,886 5,218,091
----------
Net unrealized appreciation (depreciation) during
the period on:
Investments ...................................... 1,230,125
Options .......................................... (16,897)
Foreign currency related transactions ............ (102) 1,213,126
---------- ----------
Net gain on investment transactions ................ 6,431,217
----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS ....................................... $6,867,897
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
SCUDDER VALUE FUND
- --------------------------------------------------------------------------------
<TABLE>
-------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
1996 SEPTEMBER 30,
INCREASE (DECREASE) IN NET ASSETS (UNAUDITED) 1995
-------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income ......................... $ 436,680 $ 791,269
Net realized gain from investment
transactions ................................ 5,218,091 2,767,597
Net unrealized appreciation on
investment transactions during the period ... 1,213,126 7,364,295
------------ ------------
Net increase in net assets resulting from
operations .................................. 6,867,897 10,923,161
------------ ------------
Distributions to shareholders from:
Net investment income ($.04 and $.12
per share, respectively) .................... (175,992) (309,372)
------------ ------------
Net realized gains ($.92 and $.13
per share, respectively) .................... (4,025,296) (336,274)
------------ ------------
Fund share transactions:
Proceeds from shares sold ..................... 20,015,356 48,559,462
Net asset value of shares issued to
shareholders in reinvestment of
distributions ............................... 4,132,229 599,884
Cost of shares redeemed ....................... (14,154,321) (26,461,130)
------------ ------------
Net increase in net assets from Fund share
transactions ................................ 9,993,264 22,698,216
------------ ------------
INCREASE IN NET ASSETS ........................ 12,659,873 32,975,731
Net assets at beginning of period ............. 68,074,412 35,098,681
------------ ------------
NET ASSETS AT END OF PERIOD (including
undistributed net investment income of
$362,798 and $102,110, respectively) ........ $ 80,734,285 $ 68,074,412
============ ============
OTHER INFORMATION
INCREASE (DECREASE) IN FUND SHARES
Shares outstanding at beginning of period ..... 4,288,446 2,683,720
------------ ------------
Shares sold ................................... 1,228,474 3,327,977
Shares issued to shareholders in
reinvestment of distributions ............... 263,367 47,124
Shares redeemed ............................... (881,193) (1,770,375)
------------ ------------
Net increase in Fund shares ................... 610,648 1,604,726
------------ ------------
Shares outstanding at end of period ........... 4,899,094 4,288,446
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
THE FOLLOWING TABLE INCLUDES SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT
EACH PERIOD AND OTHER PERFORMANCE INFORMATION DERIVED FROM THE FINANCIAL
STATEMENTS.
<CAPTION>
SIX MONTHS FOR THE PERIOD
ENDED DECEMBER 31, 1992
MARCH 31, YEARS ENDED SEPTEMBER 30, (COMMENCEMENT
1996 ------------------------- OF OPERATIONS) TO
(UNAUDITED) 1995 1994 SEPTMBER 30, 1993
----------- ------------------------- -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............ $15.87 $13.08 $13.38 $12.00
------ ------ ------ ------
Income from investment operations:
Net investment income (a) ..................... .09 .18 .13 .10
Net realized and unrealized gain
on investments .............................. 1.48 2.86 .11 1.28
------ ------ ------ ------
Total from investment operations ................ 1.57 3.04 .24 1.38
------ ------ ------ ------
Less distributions from:
Net investment income ......................... (.04) (.12) (.11) --
Net realized gains on investment transactions . (.92) (.13) (.43) --
------ ------ ------ ------
Total distributions ............................. (.96) (.25) (.54) --
------ ------ ------ ------
Net asset value, end of period .................. $16.48 $15.87 $13.08 $13.38
====== ====== ====== ======
TOTAL RETURN (%) ................................ 10.16** 23.62 1.88 11.50**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period ($ millions) .......... 81 68 35 29
Ratio of operating expenses, net to average
daily net assets (%) (a) ...................... 1.25* 1.25 1.25 1.25*
Ratio of net investment income to average
daily net assets (%) .......................... 1.19* 1.57 1.16 1.56*
Portfolio turnover rate (%) ..................... 114.6* 98.2 74.6 60.8*
Average commission rate paid (b) ................ $.0585 $ -- $ -- $ --
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
(a) Reflects a per share amount of management
fee and other fees not imposed ............ $ .01 $ .02 $ .04 $ .06
Operating expense ratio including expenses
reimbursed, management fee and other
expenses not imposed (%) .................. 1.32* 1.44 1.61 2.16*
(b) Average commission rate paid per share is calculated for fiscal years
beginning on or after September 1, 1995.
* Annualized
** Not annualized
</TABLE>
17
<PAGE>
SCUDDER VALUE FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
A. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
Scudder Value Fund (the "Fund") is a diversified series of
Scudder Equity Trust (the "Trust"). The Trust is organized
as a Massachusetts business trust and is registered under
the Investment Company Act of 1940, as amended, as an
open-end management investment company.
The Fund's financial statements are prepared in accordance
with generally accepted accounting principles which require
the use of management estimates. The policies described
below are followed consistently by the Fund in the
preparation of its financial statements in conformity with
generally accepted accounting principles.
SECURITY VALUATION. Portfolio securities which are traded on
U.S. or foreign stock exchanges are valued at the most
recent sale price reported on the exchange on which the
security is traded most extensively. If no sale occurred,
the security is then valued at the calculated mean between
the most recent bid and asked quotations. If there are no
such bid and asked quotations, the most recent bid quotation
is used. Securities quoted on the National Association of
Securities Dealers Automatic Quotation ("NASDAQ") System,
for which there have been sales, are valued at the most
recent sale price reported on such system. If there are no
such sales, the value is the high or "inside" bid quotation.
Securities which are not quoted on the NASDAQ System but are
traded in another over-the-counter market are valued at the
most recent sale price on such market. If no sale occurred,
the security is then valued at the calculated mean between
the most recent bid and asked quotations. If there are no
such bid and asked quotations, the most recent bid quotation
shall be used.
Portfolio debt securities with remaining maturities greater
than sixty days are valued by pricing agents approved by the
officers of the Fund, which quotations reflect
broker/dealer-supplied valuations and electronic data
processing techniques. If the pricing agents are unable to
provide such quotations, the most recent bid quotation
supplied by a bona fide market maker shall be used.
Short-term investments having a maturity of sixty days or
less are valued at amortized cost.
All other securities are valued at their fair value as
determined in good faith by the Valuation Committee of the
Board of Trustees.
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Fund are maintained
in U.S. dollars. Foreign currency transactions are translated into U.S. dollars
on the following basis:
(i) market value of investment securities, other assets and liabilities at
the daily rates of exchange, and
(ii) purchases and sales of investment securities, dividend and interest
income and certain expenses at the rates of exchange prevailing on the
respective dates of such transactions.
The Fund does not isolate that portion of gains and losses on investments which
is due to changes in foreign exchange rates from that which is due to changes in
market prices of the investments. Such fluctuations are included with the net
realized and unrealized gains and losses from investments.
Net realized and unrealized gain (loss) from foreign currency related
transactions includes gains and losses between trade and settlement dates on
securities transactions, gains and losses arising from the sales of foreign
currency, and gains and losses between the ex and payment dates on dividends,
interest, and foreign withholding taxes.
OPTIONS. An option contract is a contract in which the writer of the option
grants the buyer of the option the right to purchase from (call option), or sell
to (put option), the writer a designated instrument at a specified price within
a specified period of time. Certain options, including options on indices, will
require cash settlement by the Fund if the option is exercised. During the
period, the Fund wrote call options on financial instruments as a hedge against
potential adverse price movements in the value of portfolio assets.
If the Fund writes an option and the option expires unexercised, the Fund will
realize income, in the form of a capital gain, to the extent of the amount
received for the option (the "premium"). If the Fund elects to close out the
option it would recognize a gain or loss based on the difference between the
cost of closing the option and the initial premium received. If the Fund
purchased an option and allows the option to expire it would realize a loss to
the extent of the premium paid. If the Fund elects to close out the option it
would recognize a gain or loss equal to the difference between the cost of
acquiring the option and the amount realized upon the sale of the option.
19
<PAGE>
SCUDDER VALUE FUND
- --------------------------------------------------------------------------------
The gain or loss recognized by the Fund upon the exercise of
a written call or purchased put option is adjusted for the
amount of option premium. If a written put or purchased call
option is exercised the Fund's cost basis of the acquired
security or currency would be the exercise price adjusted
for the amount of the option premium.
The liability representing the Fund's obligation under an
exchange traded written option or investment in a purchased
option is valued at the last sale price or, in the absence
of a sale, the mean between the closing bid and asked price
or at the most recent asked price (bid for purchased
options) if no bid and asked price are available.
Over-the-counter written or purchased options are valued
using dealer supplied quotations.
When the Fund writes a covered call option, the Fund
foregoes, in exchange for the premium, the opportunity to
profit during the option period from an increase in the
market value of the underlying security or currency above
the exercise price. When the Fund writes a put option it
accepts the risk of a decline in the market value of the
underlying security or currency below the exercise price.
Over-the-counter options have the risk of the potential
inability of counterparties to meet the terms of their
contracts. The Fund's maximum exposure to purchased options
is limited to the premium initially paid. In addition,
certain risks may arise upon entering into option contracts
including the risk that an illiquid secondary market will
limit the Fund's ability to close out an option contract
prior to the expiration date and, that a change in the value
of the option contract may not correlate exactly with
changes in the value of the securities or currencies hedged.
FUTURES CONTRACTS. A futures contract is an agreement
between a buyer or seller and an established futures
exchange or its clearinghouse in which the buyer or seller
agrees to take or make a delivery of a specific amount of an
item at a specified price on a specific date (settlement
date). During the period, the Fund purchased securities
index futures as a temporary substitute for purchasing
selected investments.
Upon entering into a futures contract, the Fund is required
to deposit with a financial intermediary an amount ("initial
margin") equal to a certain percentage of the face value
indicated in the futures contract. Subsequent payments
("variation margin") are made or received by the Fund each
day, dependent on the daily fluctuations in the value of the
underlying security, and are recorded for financial
reporting purposes as
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
unrealized gains or losses by the Fund. When entering into a closing
transaction, the Fund will realize a gain or loss equal to the difference
between the value of the futures contract to sell and the futures contract to
buy. Futures contracts are valued at the most recent settlement price.
Certain risks may arise upon entering into futures contracts including the risk
that an illiquid secondary market will limit the Fund's ability to close out a
futures contract prior to the settlement date and that a change in the value of
a futures contract may not correlate exactly with changes in the value of the
securities or currencies hedged. When utilizing futures contracts to hedge, the
Fund gives up the opportunity to profit from favorable price movements in the
hedged positions during the term of the contract.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
certain banks and broker/dealers whereby the Fund, through its custodian,
receives delivery of the underlying securities, the amount of which at the time
of purchase and each subsequent business day is required to be maintained at
such a level that the market value, depending on the maturity of the repurchase
agreement and the underlying collateral, is equal to at least 100.5% of the
resale price.
FEDERAL INCOME TAXES. The Fund's policy is to comply with the requirements of
the Internal Revenue Code which are applicable to regulated investment companies
and to distribute all of its taxable income to its shareholders. Accordingly,
the Fund paid no federal income taxes and no federal income tax provision was
required.
In addition, from November 1, 1994 through September 30, 1995, the Fund incurred
approximately $136,302 of net long-term capital losses which the Fund intends to
elect to defer and treat as arising in the fiscal year ended September 30, 1996.
DISTRIBUTION OF INCOME AND GAINS. Distributions of net investment income are
made annually. During any particular year net realized gains from investment
transactions, in excess of available capital loss carryforwards, would be
taxable to the Fund if not distributed and, therefore, will be distributed to
shareholders annually. An additional distribution may be made to the extent
necessary to avoid the payment of a four percent federal excise tax.
21
<PAGE>
SCUDDER VALUE FUND
- --------------------------------------------------------------------------------
The timing and characterization of certain income and
capital gains distributions are determined annually in
accordance with federal tax regulations which may differ
from generally accepted accounting principles. The
differences primarily relate to deferral of certain losses
for tax purposes. As a result, net investment income (loss)
and net realized gain (loss) on investment transactions for
a reporting period may differ significantly from
distributions during such period. Accordingly, the Fund may
periodically make reclassifications among certain of its
capital accounts without impacting the net asset value of
the Fund.
The Fund uses the identified cost method for determining
realized gain or loss on investments for both financial and
federal income tax reporting purposes.
ORGANIZATION COSTS. Costs incurred by the Fund in connection
with its organization have been deferred and are being
amortized on a straight-line basis over a five-year period.
OTHER. Investment security transactions are accounted for on
a trade-date basis. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Interest
income is recorded on an accrual basis. Original issue
discounts are accreted for both tax and financial reporting
purposes.
B. PURCHASES AND SALES OF SECURITIES
- --------------------------------------------------------------------------------
During the six months ended March 31, 1996, purchases and
sales of investment securities (excluding short-term
investments) aggregated $43,730,837 and $40,638,161,
respectively.
The aggregate face value of futures contracts opened and
closed during the six months ended March 31, 1996 was
$6,042,890.
C. RELATED PARTIES
- --------------------------------------------------------------------------------
Under the Fund's Investment Management Agreement (the
"Agreement") with Scudder, Stevens & Clark, Inc. (the
"Adviser"), the Fund pays the Adviser a fee equal to an
annual rate of 0.70% of the Fund's average daily net assets,
computed and accrued daily and payable monthly. As manager
of the assets of the Fund, the Adviser directs the
investments of the Fund in accordance with its investment
objectives, policies, and restrictions. The Adviser
determines the securities, instruments, and other contracts
relating to investments to be purchased, sold or entered
into by the Fund. In addition to portfolio
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
management services, the Adviser provides certain administrative services in
accordance with the Agreement. The Agreement provides that if the Fund's
expenses, exclusive of taxes, interest, and extraordinary expenses, exceed
specified limits, such excess, up to the amount of the management fee, will be
paid by the Adviser. In addition, the Adviser has agreed not to impose all or a
portion of its management fee until July 31, 1996 in order to maintain the
annualized expenses of the Fund at not more than 1.25% of average daily net
assets. For the six months ended March 31, 1996, the Adviser did not impose a
portion of its management fee amounting to $26,498, and the amount imposed
amounted to $231,294.
Scudder Service Corporation ("SSC"), a subsidiary of the Adviser, is the
transfer, dividend paying and shareholder service agent for the Fund. For the
six months ended March 31, 1996, the amount charged to the Fund by SSC
aggregated $91,998, of which $16,701 is unpaid at March 31, 1996.
Scudder Fund Accounting Corporation ("SFAC"), a subsidiary of the Adviser, is
responsible for determining the daily net asset value per share and maintaining
the portfolio and general accounting records of the Fund. For the six months
ended March 31, 1996, the amount charged to the Fund by SFAC aggregated $18,750,
of which $3,125 is unpaid at March 31, 1996.
The Fund pays each of its Trustees not affiliated with the Adviser $4,000
annually, plus specified amounts for attended board and committee meetings. For
the six months ended March 31, 1996, Trustees' fees aggregated $21,109.
23
<PAGE>
(This page intentionally left blank.)
24
<PAGE>
OFFICERS AND TRUSTEES
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, Visiting Professor, 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.
25
<PAGE>
INVESTMENT PRODUCTS AND SERVICES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
The Scudder Family of Funds
-----------------------------------------------------------------------------------------------------------------
<S> <C>
Money Market Income
Scudder Cash Investment Trust Scudder Emerging Markets Income Fund
Scudder U.S. Treasury Money Fund Scudder Global Bond Fund
Tax Free Money Market+ Scudder GNMA Fund
Scudder Tax Free Money Fund Scudder Income Fund
Scudder California Tax Free Money Fund* Scudder International Bond Fund
Scudder New York Tax Free Money Fund* Scudder Short Term Bond Fund
Tax Free+ Scudder Zero Coupon 2000 Fund
Scudder California Tax Free Fund* Growth
Scudder High Yield Tax Free Fund Scudder Capital Growth Fund
Scudder Limited Term Tax Free Fund Scudder Development Fund
Scudder Managed Municipal Bonds Scudder Emerging Markets Growth Fund
Scudder Massachusetts Limited Term Tax Free Fund* Scudder Global Fund
Scudder Massachusetts Tax Free Fund* Scudder Global Discovery Fund
Scudder Medium Term Tax Free Fund Scudder Gold Fund
Scudder New York Tax Free Fund* Scudder Greater Europe Growth Fund
Scudder Ohio Tax Free Fund* Scudder International Fund
Scudder Pennsylvania Tax Free Fund* Scudder Latin America Fund
Growth and Income Scudder Pacific Opportunities Fund
Scudder Balanced Fund Scudder Quality Growth Fund
Scudder Growth and Income Fund Scudder Small Company Value Fund
Scudder Value Fund
The Japan Fund
Retirement Plans and Tax-Advantaged Investments
- ------------------------------------------------------------------------------------------------------------------
IRAs 403(b) Plans
Keogh Plans SEP-IRAs
Scudder Horizon Plan+++* (a variable annuity) Profit Sharing and Money Purchase
401(k) Plans Pension Plans
Closed-End Funds#
- ------------------------------------------------------------------------------------------------------------------
The Argentina Fund, Inc. The Latin America Dollar Income Fund, Inc.
The Brazil Fund, Inc. Montgomery Street Income Securities, Inc.
The First Iberian Fund, Inc. Scudder New Asia Fund, Inc.
The Korea Fund, Inc. Scudder New Europe Fund, Inc.
Scudder World Income
Opportunities Fund, Inc.
Institutional Cash Management
- ------------------------------------------------------------------------------------------------------------------
Scudder Institutional Fund, Inc. Scudder Treasurers Trust(TM)++
Scudder Fund, Inc.
- ------------------------------------------------------------------------------------------------------------------
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.
</TABLE>
26
<PAGE>
HOW TO CONTACT SCUDDER
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Account Service and Information
-------------------------------------------------------------------------------------------------------------
<S> <C>
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
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
Please address all correspondence to
- --------------------------------------------------------------------------------------------------------------
THE SCUDDER FUNDS
P.O. BOX 2291
BOSTON, MASSACHUSETTS
02107-2291
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 New York
Boston Portland, OR
Chicago San Diego
Cincinnati San Francisco
Los Angeles Scottsdale
- --------------------------------------------------------------------------------------------------------------
For information on Scudder For information on Scudder
Treasurers Trust,(TM) an institutional Institutional Funds,* funds
cash management service for designed to meet the broad
corporations, non-profit investment management and
organizations and trusts that uses service needs of banks and
certain portfolios of Scudder Fund, other institutions, call
Inc.* ($100,000 minimum), call 1-800-854-8525.
1-800-541-7703.
-------------------------------------------------------------------------------------------------------------
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.
</TABLE>
27
<PAGE>
Celebrating Over 75 Years of Serving Investors
Established in 1919 by Theodore Scudder, Sidney Stevens, and F. Haven Clark,
Scudder, Stevens & Clark was the first independent investment counsel firm in
the United States. Since its birth, Scudder's pioneering spirit and commitment
to professional long-term investment management have helped shape the investment
industry. In 1928, we introduced the nation's first no-load mutual fund. Today
we offer 37 pure no load(TM) funds, including the first international mutual
fund offered to U.S. investors.
Over the years, Scudder's global investment perspective and dedication to
research and fundamental investment disciplines have helped us become one of the
largest and most respected investment managers in the world. Though times have
changed since our beginnings, we remain committed to our long-standing
principles: managing money with integrity and distinction; keeping the interests
of our clients first; providing access to investments and markets that may not
be easily available to individuals; and making investing as simple and
convenient as possible through friendly, comprehensive service.
