Scudder
Large Company Value Fund
Semiannual Report
March 31, 1997
Pure No-Load(TM) Funds
A fund designed to maximize long-term capital appreciation through a
value-driven investment program.
A pure no-load(TM) fund with no commissions to buy, sell, or exchange shares.
SCUDDER
<PAGE>
Table of Contents
2 In Brief
3 Letter from the Fund's President
4 Performance Update
5 Portfolio Summary
6 Portfolio Management Discussion
8 Investment Portfolio
13 Financial Statements
16 Financial Highlights
17 Notes to Financial Statements
20 Officers and Trustees
21 Investment Products and Services
22 Scudder Solutions
In Brief
o Stocks delivered strong performance as robust corporate earnings, relatively
low interest rates, and modest inflation favored the Fund's emphasis on large
company value stocks.
o Scudder Large Company Value Fund provided a total return of 11.96% for the
six-month period, placing it among the top 6% of 803 growth funds according to
Lipper and exceeding the 11.24% return of the S&P 500 Index as of March 31,
1997.
o The Fund's value approach especially benefited from significant industry
weightings in the finance and consumer staples sectors.
2 -- Scudder Large Company Value Fund
<PAGE>
Letter From the Fund's President
Dear Shareholders,
We are pleased to present the semiannual report for Scudder Large Company
Value Fund, formerly Scudder Capital Growth Fund, for the six-months ended March
31, 1997.
Scudder Large Company Value Fund's strong performance over the period is
especially gratifying in view of the environment of increased share price
volatility investors experienced. The Fund's disciplined approach was rewarding,
as many investors sought the defensive characteristics of value stocks.
The U.S. financial markets started the new year much the way they ended
1996. Supported by a consensus economic forecast calling for modest economic
growth and low inflation, the stock market climbed to successive new highs in
January and early February. Large company stocks, in particular, led the Dow
Jones Industrial Average to over 7,000 by mid-February, a mere four months after
breaking 6,000. To put this in perspective, it took the Dow 14 years to climb
from 1,000 to 2,000. Of course, each 1,000 points declines in significance on
the way up. However, a rising tide of strong economic reports, and ultimately
the Federal Reserve's 25 basis point (one quarter percent) increase in its base
lending rate succeeded in temporarily dampening investors' enthusiasm. The
markets have recovered since the close of the period. Despite these gyrations,
we continue to believe that this is a healthy environment for equity investors.
A complete discussion of your Fund's activities begins on page 6.
For those of you who are interested in new products and services, we
recently introduced the Scudder Pathway Series. Pathway simplifies investing
through the "fund of funds" approach, offering four distinct portfolios:
Conservative, Balanced, Growth, and International. Each portfolio invests in a
select mix of Scudder Funds, providing flexibility, diversification, and
simplicity for regular and retirement plan investors. For more complete
information on Scudder products and services, please turn to page 21.
Thank you for your continued investment in Scudder Large Company Value
Fund. If you have questions about your account, please call our Investor
Relations representatives at 1-800-225-2470; they will be happy to assist you.
You can also obtain information by visiting our Internet web site at
http://funds.scudder.com.
Sincerely,
/s/Daniel Pierce
Daniel Pierce
President,
Scudder Large Company Value Fund
3 -- Scudder Large Company Value Fund
<PAGE>
PERFORMANCE UPDATE as of March 31, 1997
- ----------------------------------------------------------------
Fund Index Comparisons
- ----------------------------------------------------------------
Total Return
Period Growth --------------
Ended of Average
3/31/97 $10,000 Cumulative Annual
- --------------------------------------------
Scudder Capital Growth Fund
- --------------------------------------------
1 Year $ 11,659 16.59% 16.59%
5 year $ 19,123 91.23% 13.84%
10 Year $ 32,292 222.92% 12.44%
- --------------------------------------------
S&P 500 Index
- --------------------------------------------
1 Year $ 11,983 19.83% 19.83%
5 Year $ 21,391 113.91% 16.42%
10 Year $ 35,103 251.03% 13.37%
- --------------------------------------------
- -----------------------------------------------------------------
Growth of a $10,000 Investment
- -----------------------------------------------------------------
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 Large Company Value Fund
Year Amount
- ----------------------
87 $10,000
88 $ 9,450
89 $12,634
90 $13,249
91 $14,462
92 $16,886
93 $19,384
94 $20,273
95 $20,687
96 $27,696
97 $32,292
S&P 500 INDEX
Year Amount
- ----------------------
87 $10,000
88 $ 9,167
89 $10,829
90 $12,915
91 $14,776
92 $16,410
93 $18,913
94 $19,190
95 $22,176
96 $29,293
97 $35,103
Yearly periods ended March 31
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
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
------------------------------------------------------------------------------------------------
NET ASSET VALUE... $ 14.82 $ 18.75 $ 18.14 $ 17.74 $ 19.43 $ 20.88 $ 19.42 $ 19.06 $ 21.74 $ 22.68
INCOME DIVIDENDS.. $ .20 $ .07 $ .16 $ .37 $ .22 $ .10 $ - $ - $ .08 $ .16
CAPITAL GAINS
DISTRIBUTIONS..... $ 2.14 $ .79 $ 1.45 $ 1.35 $ .98 $ 1.25 $ 2.62 $ .73 $ 3.50 $ 2.48
FUND TOTAL
RETURN (%)........ -5.50 33.69 4.87 9.15 16.76 14.79 4.58 2.04 33.88 16.59
INDEX TOTAL
RETURN (%)........ -8.34 18.12 19.23 14.37 11.03 15.22 1.48 15.57 32.10 19.83
</TABLE>
On February 1, 1997, the Fund adopted its current name. Prior to that date,
the Fund was known as the Scudder Capital Growth Fund. 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.
4 -- Scudder Large Company Value Fund
<PAGE>
PORTFOLIO SUMMARY as of March 31, 1997
- ---------------------------------------------------------------------------
Diversification
- ---------------------------------------------------------------------------
Equity Securities 98%
Cash Equivalents 2%
- --------------------------------------
100%
- --------------------------------------
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
The portfolio's nearly 100%
holding of equity securities
reflects the Fund's fully-invested
approach.
- --------------------------------------------------------------------------
Sectors
(Excludes 2% Cash Equivalents)
- --------------------------------------------------------------------------
Financial 23%
Consumer Staples 13%
Energy 10%
Manufacturing 8%
Technology 7%
Consumer Discretionary 6%
Health 5%
Communications 5%
Durables 5%
Other 16%
- --------------------------------------
100%
- --------------------------------------
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
The Fund's disciplined, individual
stock selection resulted in
significant emphasis in the
financial and consumer staples
sectors.
- --------------------------------------------------------------------------
Ten Largest Equity Holdings
(20% of Portfolio)
- --------------------------------------------------------------------------
1. Exxon Corp.
International oil & gas company
2. International Business Machines Corp.
Principal manufacturer and servicer of business
and computing machines
3. Philip Morris Companies Inc.
Tobacco, food products and brewing
4. Whirlpool Corp.
Manufacturer of major household appliances
5. Harris Corp.
Maker of electronics & office equipment
6. Goodyear Tire and Rubber Co.
Maker of tires & rubber products
7. Bell Atlantic Corp.
Telecommunication services
8. Anheuser-Busch Companies, Inc.
Brewery
9. Federal National Mortgage Associations
Insurer and holder of mortgage loans
10. BankAmerica Corp.
Commercial banking in California
Familiar names make up the
Fund's top holdings, reflecting
the Fund's emphasis on large
company stocks with attractive
valuations.
- -----------------------------------------------------------------------------
For more complete details about the Fund's investment portfolio,
see page 8. A monthly Investment Portfolio Summary and quarterly Portfolio
Holdings are available upon request.
5 -- Scudder Large Company Value Fund
<PAGE>
Portfolio Management Discussion
Dear Shareholders,
Scudder Large Company Value Fund provided an attractive total return for the
six-month period ended March 31, 1997. The Fund returned 11.96%, reflecting an
increase in net asset value per share from $22.64 to $22.68, an income
distribution of 16 cents per share, and a capital gain distribution of $2.48 per
share.
We are pleased with the Fund's performance, which significantly outstripped the
Lipper growth fund^1 average return of 4.07%, as well as the unmanaged S&P 500
Index return of 11.24% for the same six-month period. The Russell 1000 Value
Index, an unmanaged widely recognized index of large company stocks with value
characteristics, posted similar results with a 12.81% return. Longer term, the
Fund exceeded the Lipper growth fund average return for the 1-, 3-, 5- and
10-year periods. For these periods, the Fund's Lipper peer group included 738,
465, 271, and 172 growth funds, respectively.
Market Environment
During the last six months, price volatility returned to the equity markets.
Fueled by stronger than expected corporate profits, a benign interest rate
environment, and record fourth quarter inflows into equity mutual funds, the
U.S. market reached new highs in February. At the end of March, the Federal
Reserve raised a key short-term interest rate by 25 basis points (one quarter
percent) which, combined with heightened pessimism about inflation, interrupted
the market's positive run with a correction that eroded 1997's earlier gains.
In this environment, stocks with large market capitalizations outperformed small
cap stocks, and among large companies, growth and value stocks dueled for the
best return. The Fund's large company focus and its characteristically low
volatility contributed positively to performance during this period, since
stocks with lower relative valuations tend to provide more stable returns during
periods of heightened market volatility. For example, for the 57 days over the
last six months when the S&P 500 was down, the Fund outperformed the Index 77%
of the time; for the 53 days over the last six months when the Russell 1000
Value Index was down, the Fund outperformed the Index 60% of the time.
A Disciplined Approach to Stock Selection
We pursue a disciplined approach to seeking long-term capital appreciation
through a value-driven investment program. In pursuing the Fund's objective, we
utilize a quantitative model as well as fundamental input from our seasoned
staff of research analysts. Our focus is on individual stock selection, based
principally on three criteria: attractive relative valuations, fundamental
research, and portfolio risk control.
The process begins with a review of our universe of large company stocks. We use
a broad-based universe of 1000 stocks as our "hunting ground." The stocks are
ranked based on relative value and the companies' long-term earnings outlook.
The list
- --------
1 The Lipper growth fund category includes funds with both growth and value
investment orientations.
6 -- Scudder Large Company Value Fund
<PAGE>
is divided into categories from least expensive to most expensive. The
most undervalued stocks, our "buy" candidates, fall into the top 40% of our
ranking; the most expensive stocks, our "sell candidates", are those in the
bottom 20% of our ranking.
Our analysts evaluate prospective portfolio holdings by digging into each
company's financial statements and assessing the company's prospects,
management, and strategy, among other factors. By incorporating the input of our
team of research analysts, we strive to anticipate changes in the fundamentals
of individual companies and the industries in which they compete.
Portfolio Highlights
In the increasingly volatile markets of 1997, we have stayed with our discipline
of searching for undervalued large capitalization stocks with improving
fundamentals. On the basis of the fundamental input from our internal analysts
and the signals from our quantitative model, we have remained heavily weighted
in interest rate sensitive stocks -- such as finance, insurance, and utilities
- -- which were important positive contributors to Fund performance over the
period. Going forward, many of these companies, such as Travelers, an insurance
company, continue to have attractive valuations and strong earnings prospects.
An overweighted position in the consumer staples and healthcare areas versus our
benchmark also contributed to the Fund's performance. Stocks such as Unilever, a
global consumer products company, and H.J. Heinz, a leading food processor, have
been very strong. We are particularly interested in health service issues such
as Humana, a major HMO, and Bergen Brunswig, a drug distributor. Stock selection
in the consumer discretionary sector has boosted returns in the Fund with
particularly outstanding performance from footwear maker Reebok. In addition,
the Fund's technology selections have been well rewarded, with companies such as
disk drive maker Western Digital, IBM, and National Semiconductor.
Outlook
Looking ahead, we will continue to base our value-oriented stock selection on
quantitative disciplines and proprietary fundamental research, with the goal of
providing both upside potential and downside protection in varying market
environments. Aggregate market levels remain high in historical terms, but we
believe that there are always relatively attractive valuation opportunities to
unearth. For investors who are seeking long-term growth of capital from
undervalued securities, we believe the Fund will continue to provide rewarding
returns.
Sincerely,
Your Portfolio Management Team
/s/Kathleen T. Millard /s/Lois R. Friedman
Kathleen T. Millard Lois R. Friedman
Lead Portfolio Manager Portfolio Manager
7 -- Scudder Large Company Value Fund
<PAGE>
Investment Portfolio as of March 31, 1997 (Unaudited)
Principal Market
Amount ($) Value ($)
- --------------------------------------------------------------------------------
Repurchase Agreements 1.6%
- --------------------------------------------------------------------------------
Repurchase Agreement with Donaldson, Lufkin & Jenrette
dated 3/31/97 at 6.375%, to be repurchased at $27,889,938
on 4/1/97, collateralized by a $22,024,000 U.S. Treasury -----------
Note, 10.375%, 11/15/12 (Cost $27,885,000) ............. 27,885,000 27,885,000
-----------
Shares
- --------------------------------------------------------------------------------
Common Stocks 98.4%
- --------------------------------------------------------------------------------
Consumer Discretionary 5.1%
Apparel and Shoes 1.0%
Reebok International Ltd. ............................... 406,700 18,250,663
-----------
Department & Chain Stores 3.4%
Costco Companies, Inc.* ................................. 880,400 24,321,050
Dayton Hudson Corp. ..................................... 439,800 18,361,650
Rite Aid Corp. .......................................... 410,700 17,249,400
-----------
59,932,100
-----------
Restaurants 0.7%
Brinker International Inc.* ............................. 952,600 12,026,575
-----------
Consumer Staples 12.4%
Alcohol & Tobacco 3.9%
Anheuser-Busch Companies, Inc. .......................... 783,100 32,988,088
Philip Morris Companies Inc. ............................ 310,800 35,470,050
-----------
68,458,138
-----------
Consumer Electronic & Photographic Products 2.9%
Eastman Kodak Co. ....................................... 215,000 16,313,125
Whirlpool Corp. ......................................... 716,200 34,109,025
-----------
50,422,150
-----------
Food & Beverage 4.5%
American Stores Co. ..................................... 413,000 18,378,500
ConAgra Inc. ............................................ 362,900 19,687,325
H.J. Heinz Co. .......................................... 504,100 19,911,950
Unilever NV (New York shares) ........................... 112,600 20,971,750
-----------
78,949,525
-----------
Textiles 1.1%
VF Corporation .......................................... 292,400 19,554,250
-----------
Health 4.9%
Health Industry Services 3.0%
Bergen Brunswig Corp. "A" ............................... 747,500 22,238,125
The accompanying notes are an integral part of the financial statements.
8 -- Scudder Large Company Value Fund
<PAGE>
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Humana Inc.* ........................................... 1,401,700 30,837,400
-----------
53,075,525
-----------
Pharmaceuticals 1.9%
American Home Products Corp. ........................... 284,900 17,094,000
Bristol-Myers Squibb Co. ............................... 282,400 16,661,600
-----------
33,755,600
-----------
Communications 4.9%
Telephone/Communications
American Telephone & Telegraph Co. ..................... 665,600 23,129,600
Bell Atlantic Corp. .................................... 546,000 33,237,750
GTE Corp. .............................................. 488,900 22,794,963
Telefonos de Mexico S.A. de C.V. "L" (ADR) ............. 151,700 5,840,450
-----------
85,002,763
-----------
Financial 24.7%
Banks 10.0%
Banc One Corp. ......................................... 394,900 15,697,275
BankBoston Corp. ....................................... 443,500 29,714,500
BankAmerica Corp. ...................................... 316,900 31,927,675
Chase Manhattan Corp. .................................. 268,800 25,166,400
First Chicago NBD Corp. ................................ 189,300 10,245,863
J.P. Morgan & Co., Inc. ................................ 224,500 22,057,125
KeyCorp ................................................ 332,000 16,185,000
NationsBank Corp. ...................................... 445,300 24,658,488
-----------
175,652,326
-----------
Insurance 8.8%
Allstate Corp. ......................................... 518,600 30,791,875
Cigna Corp. ............................................ 207,400 30,306,325
EXEL, Ltd. ............................................. 513,700 21,703,825
General Re Corp. ....................................... 87,800 13,872,400
MBIA Inc. .............................................. 190,200 18,235,425
Mid Ocean Limited ...................................... 451,900 21,578,217
Transamerica Corp. ..................................... 197,800 17,703,100
-----------
154,191,167
-----------
Other Financial Companies 5.0%
American Express Credit Corp. .......................... 406,700 24,351,163
Federal National Mortgage Association .................. 888,000 32,079,000
The accompanying notes are an integral part of the financial statements.
9 -- Scudder Large Company Value Fund
<PAGE>
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Travelers Group, Inc. ..................................... 645,866 30,920,835
-----------
87,350,998
-----------
Real Estate 0.9%
Nationwide Health Properties Inc. (REIT) .................. 770,000 16,458,750
-----------
Media 1.3%
Cable Television 0.5%
Comcast Corp. "A" ......................................... 538,900 9,093,938
-----------
Print Media 0.8%
Times Mirror Co. "A" ...................................... 277,300 15,147,513
-----------
Service Industries 3.7%
Environmental Services 1.5%
Browning Ferris Industries ................................ 928,000 26,796,000
-----------
Investment 1.0%
Merrill Lynch & Co., Inc. ................................. 210,900 18,111,038
-----------
Printing/Publishing 1.2%
R.R. Donnelley & Sons Co. ................................. 622,500 21,709,688
-----------
Durables 4.8%
Aerospace 0.6%
United Technologies Corp. ................................. 138,000 10,384,500
-----------
Automobiles 2.3%
Eaton Corp. ............................................... 263,700 18,689,738
Ford Motor Co. ............................................ 275,300 8,637,538
General Motors Corp. ...................................... 241,400 13,367,525
-----------
40,694,801
-----------
Tires 1.9%
Goodyear Tire & Rubber Co. ................................ 640,200 33,450,450
-----------
Manufacturing 8.2%
Chemicals 3.2%
B.F. Goodrich Co., Inc. ................................... 435,100 15,935,538
Dow Chemical Co. .......................................... 253,900 20,312,000
E.I. du Pont de Nemours & Co. ............................. 92,500 9,805,000
Eastman Chemical Co. ...................................... 186,600 10,029,750
-----------
56,082,288
-----------
Diversified Manufacturing 2.0%
Dresser Industries Inc. ................................... 450,300 13,621,575
The accompanying notes are an integral part of the financial statements.
10 -- Scudder Large Company Value Fund
<PAGE>
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Textron, Inc. .......................................... 202,800 21,294,000
-----------
34,915,575
-----------
Electrical Products 1.7%
Emerson Electric Co. ................................... 335,200 15,084,000
Philips Electronics NV (New York shares) ............... 315,800 14,053,100
-----------
29,137,100
-----------
Specialty Chemicals 1.3%
Witco Corp. ............................................ 688,100 23,395,400
-----------
Technology 6.9%
Diverse Electronic Products 1.9%
Harris Corp. ........................................... 442,100 33,986,438
-----------
EDP Peripherals 0.7%
Western Digital Corp.* ................................. 222,200 12,582,075
-----------
Electronic Data Processing 2.1%
International Business Machines Corp. .................. 263,000 36,129,625
-----------
Military Electronics 0.8%
General Dynamics Corp. ................................. 200,000 13,475,000
-----------
Semiconductors 1.4%
National Semiconductor Corp.* .......................... 922,300 25,363,250
-----------
Energy 9.7%
Oil & Gas Production 1.6%
Coastal Corp. .......................................... 597,500 28,680,000
-----------
Oil Companies 8.1%
Atlantic Richfield Co. ................................. 127,800 17,253,000
British Petroleum PLC (ADR) ............................ 136,200 18,693,450
Exxon Corp. ............................................ 399,700 43,067,675
Mobil Corp. ............................................ 156,000 20,377,500
Royal Dutch Petroleum Co. .............................. 35,000 6,356,341
Royal Dutch Petroleum Co. (New York shares) ............ 71,200 12,460,000
Texaco Inc. ............................................ 216,100 23,662,950
-----------
141,870,916
-----------
Construction 3.7%
Building Materials 1.3%
Armstrong World Industries, Inc. ....................... 240,400 15,565,900
Vulcan Materials Co. ................................... 126,100 8,180,738
-----------
23,746,638
-----------
The accompanying notes are an integral part of the financial statements.
11 -- Scudder Large Company Value Fund
<PAGE>
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Forest Products 2.4%
Louisiana-Pacific Corp. ................................ 537,800 11,159,350
Weyerhaeuser Co. ....................................... 687,400 30,675,225
-----------
41,834,575
-----------
Transportation 3.4%
Railroads 2.9%
CSX Corp. .............................................. 431,800 20,078,700
Canadian National Railway Co. .......................... 432,500 15,323,143
Canadian Pacific Ltd. .................................. 648,400 15,561,600
-----------
50,963,443
-----------
Trucking 0.5%
Consolidated Freightways, Inc. ......................... 363,500 9,859,938
-----------
Utilities 4.7%
Electric Utilities 3.8%
American Electric Power Co. ............................ 330,100 13,616,625
Duke Power Co. ......................................... 339,000 14,958,375
FPL Group, Inc. ........................................ 362,200 15,982,075
P G & E Corp. .......................................... 927,300 21,791,550
-----------
66,348,625
-----------
Natural Gas Distribution 0.9%
Pacific Enterprises .................................... 554,800 16,782,700
- --------------------------------------------------------------------------------
Total Common Stocks (Cost $1,437,631,805) 1,733,622,044
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total Investment Portfolio -- 100.0% (Cost $1,465,516,805) (a) 1,761,507,044
- --------------------------------------------------------------------------------
* Non-income producing security.
(a) The cost for federal income tax purposes was $1,465,516,805. At March 31,
1997, net unrealized appreciation for all securities based on tax cost was
$295,990,239. This consisted of aggregate gross unrealized appreciation
for all securities in which there was an excess of market value over tax
cost of $305,747,715 and aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over market value of
$9,757,476.
The accompanying notes are an integral part of the financial statements.
12 -- Scudder Large Company Value Fund
<PAGE>
Financial Statements
Statement of Assets and Liabilities
as of March 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
Assets
----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investments, at market (identified cost $1,465,516,805) ................ $1,761,507,044
Receivable on investments sold ......................................... 9,942,057
Dividends and interest receivable ...................................... 3,480,747
Receivable on Fund shares sold ......................................... 1,205,071
Receivable on foreign taxes recoverable ................................ 55,839
Other assets ........................................................... 45,239
----------------
Total assets ........................................................... 1,776,235,997
Liabilities
----------------------------------------------------------------------------------------------------------------------------
Payables for investments purchased ..................................... 3,221,731
Due to custodian bank .................................................. 16,613
Payable for Fund shares redeemed ....................................... 5,162,308
Accrued management fee ................................................. 1,004,526
Other accrued expenses ................................................. 586,943
----------------
Total liabilities ...................................................... 9,992,121
-------------------------------------------------------------------------------------------
Net assets, at market value $1,766,243,876
-------------------------------------------------------------------------------------------
Net Assets
----------------------------------------------------------------------------------------------------------------------------
Net assets consist of:
Undistributed net investment income .................................... 8,446,742
Unrealized appreciation/depreciation on:
Investments ......................................................... 295,990,239
Foreign currency related transactions ............................... (785)
Accumulated net realized gain .......................................... 54,358,150
Paid-in capital ........................................................ 1,407,449,530
-------------------------------------------------------------------------------------------
Net assets, at market value $1,766,243,876
-------------------------------------------------------------------------------------------
Net Asset Value
----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share
($1,766,243,876/77,865,813 outstanding shares of beneficial ----------------
interest, $.01 par value, unlimited number of shares authorized) ...... $22.68
----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
13 -- Scudder Large Company Value Fund
<PAGE>
Statement of Operations
six months ended March 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
Investment Income
------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $178,288) .................. $ 22,400,683
Interest ............................................................... 843,343
----------------
23,244,026
Expenses:
Management fee ......................................................... 5,786,214
Services to shareholders ............................................... 2,289,056
Trustees' fees and expenses ............................................ 19,438
Custodian and accounting fees .......................................... 166,026
Reports to shareholders ................................................ 152,789
Auditing ............................................................... 26,600
Legal .................................................................. 13,405
Registration fees ...................................................... 59,519
Other .................................................................. 25,152
----------------
8,538,199
-------------------------------------------------------------------------------------------
Net investment income 14,705,827
-------------------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investment transactions
------------------------------------------------------------------------------------------------------------------------------
Net realized gain from:
Investments ............................................................ 78,503,102
Foreign currency related transactions .................................. 1,258
----------------
78,504,360
Net unrealized appreciation (depreciation) during the period on:
Investments ............................................................ 103,380,106
Foreign currency related transactions .................................. (1,118)
----------------
103,378,988
-------------------------------------------------------------------------------------------
Net gain on investment transactions 181,883,348
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 196,589,175
-------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
14 -- Scudder Large Company Value Fund
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
March 31, 1997 September 30,
Increase (Decrease) in Net Assets (Unaudited) 1996
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income ................................... $ 14,705,827 $ 25,638,335
Net realized gain from investment transactions .......... 78,504,360 156,485,746
Net unrealized appreciation on investment transactions
during the period ...................................... 103,378,988 50,222,142
---------------- -----------------
Net increase in net assets resulting from operations .... 196,589,175 232,346,223
---------------- -----------------
Distributions to shareholders from:
Net investment income ................................... (11,553,936) (5,186,735)
---------------- -----------------
Net realized gains on investment transactions ........... (179,180,946) (226,928,336)
---------------- -----------------
Fund share transactions:
Proceeds from shares sold ............................... 121,826,866 242,975,623
Net asset value of shares issued to shareholders in
reinvestment of distributions .......................... 182,941,443 222,385,560
Cost of shares redeemed ................................. (195,838,523) (305,801,902)
---------------- -----------------
Net increase in net assets from Fund share transactions . 108,929,786 159,559,281
---------------- -----------------
Increase in net assets .................................. 114,784,079 159,790,433
Net assets at beginning of period ....................... 1,651,459,797 1,491,669,364
Net assets at end of period (including undistributed
net investment income of $8,466,742 and $5,294,851, ---------------- -----------------
respectively) .......................................... $1,766,243,876 $1,651,459,797
---------------- -----------------
Other Information
------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Fund shares
Shares outstanding at beginning of period ............... 72,934,700 65,078,938
---------------- -----------------
Shares sold ............................................. 5,183,647 11,066,908
Shares issued to shareholders in reinvestment of
distributions .......................................... 8,148,839 10,795,415
Shares redeemed ......................................... (8,401,373) (14,006,561)
---------------- -----------------
Net increase in Fund shares ............................. 4,931,113 7,855,762
---------------- -----------------
Shares outstanding at end of period ..................... 77,865,813 72,934,700
---------------- -----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
15 -- Scudder Large Company Value Fund
<PAGE>
Financial Highlights
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
<TABLE>
<CAPTION>
Six Months
Ended Years Ended September 30,
March 31,
(Unaudited) 1996 1995 1994 1993(c) 1992 1991 1990 1989 1988 1987
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning -------------------------------------------------------------------------------------------------
of period ............... $22.64 $22.92 $19.54 $23.06 $19.12 $19.30 $14.77 $22.30 $16.10 $20.41 $17.17
-------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income (loss) .19 .36 .13 (.02) .06 .12 .20 .30(b) .21 .09 .16
Net realized and unrealized
gain (loss) on
investment transactions . 2.49 2.94 3.98 (.88) 5.23 .90 6.05 (6.22) 6.61 (1.82) 5.77
Total from investment -------------------------------------------------------------------------------------------------
operations .............. 2.68 3.30 4.11 (.90) 5.29 1.02 6.25 (5.92) 6.82 (1.73) 5.93
-------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income ...... (.16) (.08) -- -- (.10) (.22) (.37) (.16) (.07) (.20) (.23)
Net realized gains on
investment transactions . (2.48) (3.50) (.73) (2.62) (1.25) (.98) (1.35) (1.45) (.55) (2.38) (2.46)
-------------------------------------------------------------------------------------------------
Total distributions ........ (2.64) (3.58) (.73) (2.62) (1.35) (1.20) (1.72) (1.61) (.62) (2.58) (2.69)
-------------------------------------------------------------------------------------------------
Net asset value, end of -------------------------------------------------------------------------------------------------
period .................. $22.68 $22.64 $22.92 $19.54 $23.06 $19.12 $19.30 $14.77 $22.30 $16.10 $20.41
-------------------------------------------------------------------------------------------------
Total Return (%) ........... 11.96** 15.94 21.96 (4.72) 28.83 5.61 45.85 (28.20) 44.05 (5.61) 39.03
Ratios and Supplemental Data
Net assets, end of period
($ millions) ............ 1,766 1,651 1,492 1,338 1,387 1,054 1,058 712 1,013 491 583
Ratio of operating expenses
to average net assets (%) .96* .92 .98 .97 .96 .98 1.04 .94 .88 .95 .88
Ratio of net investment
income (loss) to average
net assets (%) .......... 1.66* 1.62 .62 (.12) .22 .57 1.24 1.56 1.22 .63 .86
Portfolio turnover rate (%) 58.44* 150.7 153.6 75.8 92.2 92.4 93.2 87.9 55.7 48.5 58.2
Average commission rate
paid (d) ................ $.0560 $.0533 $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
</TABLE>
(a) Based on monthly average of shares outstanding during the period.
(b) Net investment income per share includes nonrecurring dividend income
amounting to $.14 per share.
(c) Effective October 1, 1992, the Fund discontinued using equalization
accounting.
(d) Average commission rate paid per share of common and preferred stocks is
calculated for fiscal years ending on or after September 30, 1996.
* Annualized
** Not annualized
16 -- Scudder Large Company Value Fund
<PAGE>
Notes to Financial Statements (Unaudited)
A. Significant Accounting Policies
Scudder Large Company Value Fund (formerly Scudder Capital Growth 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.
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.
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, is equal to at least 100.5% of the repurchase price.
Forward Foreign Currency Exchange Contracts. A forward foreign currency exchange
contract (forward contract) is a commitment to purchase or sell a foreign
currency at the settlement date at a negotiated rate. During the period, the
Fund utilized forward contracts as a hedge in connection with portfolio
purchases and sales of securities denominated in foreign currencies.
Forward contracts are valued at the prevailing forward exchange rate of the
underlying currencies and unrealized gain/loss is recorded daily. Forward
contracts having the same settlement date and broker are offset and any gain
(loss) is realized on the date of offset; otherwise, gain (loss) is realized on
settlement date. Realized and unrealized gains and losses which represent the
difference between the value of the forward contract to buy and the forward
contract to sell are included in net realized and unrealized gain (loss) from
foreign currency related transactions.
Certain risks may arise upon entering into forward contracts from the potential
inability of counterparties to meet the terms of their contracts. Additionally,
when utilizing forward contracts to hedge, the Fund gives up the opportunity to
profit from favorable exchange rate movements during the term of the contract.
17 -- Scudder Large Company Value Fund
<PAGE>
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 other 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.
Federal Income Taxes. The Fund's policy is to comply with the requirements of
the Internal Revenue Code of 1986, as amended, 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.
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. Earnings
and profits distributed to shareholders on redemption of Fund shares ("tax
equalization") may be utilized by the Fund, to the extent permissible, as part
of the Fund's dividends paid deduction on its federal tax return.
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 foreign denominated investments, investments in options, and
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.
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 and market discounts are accreted for both tax and financial
reporting purposes.
B. Purchases and Sales of Securities
During the six months ended March 31, 1997, purchases and sales of investment
securities (excluding short-term investments) aggregated $504,938,147 and
$585,455,831, respectively.
18 -- Scudder Large Company Value Fund
<PAGE>
C. Related Parties
Under the Fund's Investment Management Agreement (the "Agreement") with Scudder,
Stevens & Clark, Inc. (the "Adviser"), the Fund has agreed to pay to the Adviser
a fee equal to an annual rate of approximately 0.75% of the first $500,000,000
of average daily net assets, 0.65% of the next $500,000,000 of such net assets,
0.60% of the next $500,000,000 of such net assets and 0.55% of such net assets
in excess of $1,500,000,000, 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 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. For the six months ended March 31, 1997, the fee
pursuant to the Agreement amounted to $5,786,214 which was equivalent to an
annual effective rate of .65% of the Fund's average daily net assets.
Scudder Service Corporation ("SSC"), a subsidiary of the Adviser, is the
transfer, dividend paying and shareholder service agent for the Fund. Included
in services to shareholders is $1,261,302 charged to the Fund by SSC for the six
months ended March 31, 1997, of which $209,188 is unpaid at March 31, 1997.
Scudder Trust Company ("STC"), a subsidiary of the Adviser, provides
recordkeeping and other services in connection with certain retirement and
employee benefit plans invested in the Fund. For the six months ended March 31,
1997, the amount charged to the Fund by STC aggregated $766,723, of which
$131,759 is unpaid at March 31, 1997.
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, 1997, the amount charged to the Fund by SFAC aggregated $76,618,
of which $12,770 is unpaid at March 31, 1997.
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, 1997, Trustees' fees and expenses aggregated
$19,438.
19 -- Scudder Large Company Value Fund
<PAGE>
Officers and Trustees
Daniel Pierce*
President and Trustee
Paul Bancroft III
Trustee; Venture Capitalist and Consultant
Sheryle J. Bolton
Trustee; Chief Executive Officer, Scientific Learning Corporation
Thomas J. Devine
Trustee; Consultant
Keith R. Fox
Trustee, President, Exeter Capital Management Corporation
Dudley H. Ladd*
Trustee
David S. Lee*
Vice President and Trustee
Dr. Wilson Nolen
Trustee; Consultant
Kathryn L. Quirk*
Trustee, Vice President and Assistant Secretary
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
*Scudder, Stevens & Clark, Inc.
20 -- Scudder Large Company Value Fund
<PAGE>
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*
Growth and Income
Scudder Balanced Fund
Scudder Growth and Income Fund
Income
Scudder Emerging Markets Income Fund
Scudder Global Bond Fund
Scudder GNMA Fund
Scudder High Yield Bond Fund
Scudder Income Fund
Scudder International Bond Fund
Scudder Short Term Bond Fund
Scudder Zero Coupon 2000 Fund
Growth
Scudder Capital Growth Fund
Scudder Classic Growth Fund
Scudder Development Fund
Scudder Emerging Markets Growth Fund
Scudder Global Discovery Fund
Scudder Global Fund
Scudder Gold Fund
Scudder Greater Europe Growth Fund
Scudder International Fund
Scudder Latin America Fund
Scudder Micro Cap Fund
Scudder Pacific Opportunities Fund
Scudder Quality Growth Fund
Scudder Small Company Value Fund
Scudder 21st Century Growth 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.
21 -- Scudder Large Company Value Fund
<PAGE>
Scudder Solutions
<TABLE>
<S> <C> <C>
Convenient ways to invest, quickly and reliably:
- --------------------------------------------------------------------------------------------------------------------------
Automatic Investment Plan AutoBuy
A convenient investment program in which you designate Lets you purchase Scudder fund shares
the purchase details and the bank account, and money is electronically, avoiding potential mailing delays;
electronically debited from that account monthly to designate a bank account and the transaction
regularly purchase fund shares and "dollar cost average" details, and money for each of your transactions is
-- buy more shares when the fund's price is higher and electronically debited from that account.
fewer when it's lower, which can reduce your average
purchase price over time.
Automatic Dividend Transfer Payroll Deduction and Direct Deposit
The most timely, reliable, and convenient way to Have all or part of your paycheck -- even government
purchase shares -- use distributions from one Scudder checks -- invested in up to four Scudder funds at
fund to purchase shares in another, automatically one time.
(accounts with identical registrations or the same
social security or tax identification number).
Dollar cost averaging involves continuous investment in securities regardless of price
fluctuations and does not assure a profit or protect against loss in declining markets.
Investors should consider their ability to continue such a plan through periods of low price
levels.
Around-the-clock electronic account service and information, including some transactions:
- --------------------------------------------------------------------------------------------------------------------------
Scudder Automated Information Line: SAIL(tm) -- Scudder's Web Site -- http://funds.scudder.com
1-800-343-2890
Scudder Electronic Account Services: Offering
Personalized account information, the ability to account information and transactions, interactive
exchange or redeem shares, and information on other worksheets, prospectuses and applications for all
Scudder funds and services via touchtone telephone. Scudder funds, plus your current asset allocation,
whenever you need them. Scudder's Site also
provides news about Scudder funds, retirement
planning information, and more.
Retirees and those who depend on investment proceeds for living expenses can enjoy these convenient, timely, and reliable
automated withdrawal programs:
- --------------------------------------------------------------------------------------------------------------------------
Automatic Withdrawal Plan AutoSell
You designate the bank account, determine the schedule Provides speedy access to your money by
(as frequently as once a month) and amount of the electronically crediting your redemption proceeds
redemptions, and Scudder does the rest. to the bank account you designate.
DistributionsDirect
Automatically deposits your fund distributions into the
bank account you designate within three business days
after each distribution is paid.
For more information about these services, call a Scudder representative at 1-800-225-5163
- --------------------------------------------------------------------------------------------------------------------------
22 -- Scudder Large Company Value Fund
<PAGE>
Mutual Funds and More -- Brokerage and Guidance Services:
- --------------------------------------------------------------------------------------------------------------------------
Scudder Brokerage Services Scudder Portfolio Builder
Offers you access to a world of investments, A free service designed to help suggest ways investors like
including stocks, corporate bonds, Treasuries, plus you can diversify your portfolio among domestic and global,
over 6,000 mutual funds from at least 150 mutual as well as equity, fixed-income, and money market funds,
fund companies. And Scudder Fund Folio(sm) provides using Scudder funds.
investors with access to a marketplace of more than
500 no-load funds from well-known companies -- with Personal Counsel from Scudder(sm)
no transaction fees or commissions. Scudder Developed for investors who prefer the benefits of no-load
shareholders can take advantage of a Scudder Scudder funds but want ongoing professional assistance in
Brokerage account already reserved for them, with managing a portfolio. Personal Counsel(sm) is a highly
no minimum investment. For information about customized, fee-based asset management service for
Scudder Brokerage Services, call 1-800-700-0820. individuals investing $100,000 or more.
Fund Folio funds held less than six months will be charged a fee for redemptions. You can buy
shares directly from the fund itself or its principal underwriter or distributor without
paying this fee. Scudder Brokerage Services, Inc., 42 Longwater Drive, Norwell, MA 02061.
Member SIPC.
Personal Counsel From Scudder(sm) and Personal Counsel(sm) are service marks of and represent a
program offered by Scudder Investor Services, Inc., Adviser.
For more information about these services, call a Scudder representative at 1-800-225-5163
- --------------------------------------------------------------------------------------------------------------------------
Additional Information on How to Contact Scudder:
- --------------------------------------------------------------------------------------------------------------------------
For existing account services and transactions Please address all written correspondence to
Scudder Investor Relations -- 1-800-225-5163 The Scudder Funds
P.O. Box 2291
For establishing 401(k) and 403(b) plans Boston, Massachusetts
Scudder Defined Contribution Services -- 02107-2291
1-800-323-6105
Or Stop by a Scudder Funds Center
For information about The Scudder Funds, including Many shareholders enjoy the personal, one-on-one service of
additional applications and prospectuses, or for the Scudder Funds Centers. Check for a Funds Center near
answers to investment questions you -- they can be found in the following cities:
Scudder Investor Relations -- 1-800-225-2470 Boca Raton Chicago San Francisco
[email protected] Boston New York
New From Scudder: Pathway Series
In a complex financial world, Scudder Pathway Series is a refreshingly simple concept. With one
investment, Pathway gives you instant access to broad diversification in U.S. markets and
across the globe. Select from four Portfolios -- Conservative, Balanced, Growth, or
International -- each with a distinct investment objective that can match your goals. Each
Portfolio, rather than investing in individual securities, invests in carefully selected
Scudder mutual funds.
The share price of each Pathway Series portfolio will fluctuate and the risk associated with
each portfolio is determined by the securities held in each underlying Scudder fund. Contact
Scudder Investor Services, Inc., Distributor, for a prospectus which contains more complete
information, including management fees and other expenses. Please read it carefully before you
invest or send money.
</TABLE>
23 -- Scudder Large Company Value Fund
<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 over 40 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.
This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
SCUDDER
