SCUDDER EQUITY TRUST, N-30D, 1998-05-12

SCUDDER EQUITY TRUST
N-30D, 1998-05-12

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Scudder
Value
Fund

Semiannual Report
March 31, 1998

Pure No-Load(TM) Funds

For investors seeking long-term growth of capital through investment in
undervalued equity securities.

A pure no-load(TM) fund with no commissions to buy, sell, or exchange shares.

SCUDDER (logo)

<PAGE>

Scudder Value Fund

- --------------------------------------------------------------------------------
Date of Inception: 12/31/92 Total Net Assets as of Ticker Symbol: SCVAX
3/31/98: $505.6 million
- --------------------------------------------------------------------------------

o For the six-month period ended March 31, 1998, Scudder Value Fund returned
15.61%, which exceeded the 11.55% average growth fund return according to Lipper
Analytical Services for the same period.

o With the Asian crisis influencing the markets in the fourth quarter of 1997,
value stocks outperformed growth stocks. However, the situation reversed
somewhat during the first quarter of 1998, as Asian concerns abated and growth
outperformed value.

o Management continued to find attractively valued stocks across a broad range
of industries, despite the relatively high valuation of the market in aggregate.

o The Fund was assigned an overall 4-star risk-adjusted rating from Morningstar
among 2,437 domestic equity funds as of March 31, 1998.^1

Table of Contents

3 Letter from the Fund's President 20 Financial Highlights
4 Performance Update 21 Notes to Financial Statements
5 Portfolio Summary 25 Shareholder Meeting Results
6 Portfolio Management Discussion 28 Officers and Trustees
9 Glossary of Investment Terms 29 Investment Products and Services
10 Investment Portfolio 30 Scudder Solutions
17 Financial Statements

^1 Source: Morningstar. Ratings are subject to change monthly and are
calculated from the Fund's three-, five-, and ten-year average annual
returns in excess of 90-day Treasury bill returns with appropriate fee
adjustments, and a risk factor that reflects Fund performance below 90-day
T-bill returns. In an investment category, 10% of funds receive 5 stars and
the next 22.5% receive 4 stars. In the domestic equity category, the Fund
received a 4 star rating for the three-year period and a 5 star rating for
the five-year period. The Fund is not rated for the ten-year period because
it commenced operations on 12/31/92. Past performance is no guarantee of
future results.

2 - Scudder Value Fund

<PAGE>

Letter from the Fund's President

Dear Shareholders,

As we began Scudder Value Fund's six-month fiscal period last fall, the
environment was clouded by the Asian financial crisis and the October market
correction. Concerns eased by the beginning of 1998, as the anticipated flood of
cheap imports from Asia and sharply lower corporate earnings for U.S.
corporations failed to appear. Meanwhile, the U.S. economy remains healthy and
things are looking up in many foreign markets, especially Europe.

While valuations of U.S. stocks are relatively high from our standpoint, we
think that many opportunities remain for long-term investors. On the following
pages, lead portfolio manager Donald Hall discusses some of the opportunities he
sees in managing Scudder Value Fund, as well as the investment environment over
the six-month fiscal period.

At the beginning of 1998, the Fund's investment adviser changed its name to
Scudder Kemper Investments, Inc. from Scudder, Stevens & Clark, Inc., reflecting
the acquisition of a majority interest in Scudder by Zurich Insurance Company,
and the combining of Scudder's business with that of Zurich Kemper Investments,
Inc. We think this combination is very positive, and will provide your Fund's
manager with expanded resources in managing the Fund.

For those of you who are interested in new Scudder products, we recently
introduced three new industry sector funds that comprise the Choice Series:
Scudder Financial Services Fund, Scudder Health Care Fund, and Scudder
Technology Fund. In addition, April 6th marked the debut of our latest entrant
in the growth and income category, Scudder Real Estate Investment Fund. For
further information on any of these new funds, please call 1-800-225-2470.

Thank you for your continued investment in Scudder Value Fund. If you have
any questions about your account, please call Scudder Investor Relations at the
toll-free number above, or visit our Web site at http://funds.scudder.com.

Sincerely,

/s/ Daniel Pierce

Daniel Pierce
President,
Scudder Value Fund

3 - Scudder Value Fund

<PAGE>

PERFORMANCE UPDATE as of March 31, 1998
- ----------------------------------------------------------------
Fund Index Comparisons
- ----------------------------------------------------------------
Total Return
- --------------------------------------------
Period Ended Growth of Average
3/31/98 $10,000 Cumulative Annual
- --------------------------------------------
Scudder Value Fund
- --------------------------------------------
1 Year $ 14,594 45.94% 45.94%
5 Year $ 25,372 153.72% 20.47%
Life of Fund* $ 27,740 177.40% 21.45%
- --------------------------------------------
S&P 500 Index
- --------------------------------------------
1 Year $ 14,802 48.02% 48.02%
5 Year $ 27,470 174.70% 22.38%
Life of Fund* $ 28,670 186.70% 22.22%
- --------------------------------------------
*The Fund commenced operations on December 31, 1992.

- -----------------------------------------------------------------
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 VALUE FUND
Year Amount
- ----------------------
12/92* $10,000
3/93 $10,933
3/94 $10,830
3/95 $12,069
3/96 $15,470
3/97 $19,007
3/98 $27,740

S&P 500 INDEX
Year Amount
- ----------------------
12/92* $10,000
3/93 $10,437
3/94 $10,590
3/95 $12,237
3/96 $16,165
3/97 $19,369
3/98 $28,670

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 1997 1998
----------------------------------------------------------
NET ASSET VALUE... $ 13.12 $ 12.47 $ 13.64 $ 16.48 $ 18.64 $ 25.03
INCOME DIVIDENDS.. $ -- $ .11 $ .12 $ .04 $ .07 $ .24
CAPITAL GAINS
DIVIDENDS......... $ -- $ .43 $ .13 $ .92 $ 1.48 $ 1.65
FUND TOTAL
RETURN (%)........ 9.33 -.94 11.44 28.18 22.86 45.94
INDEX TOTAL
RETURN (%)........ 4.37 1.48 15.57 32.10 19.83 48.02

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 Fund for the one year,
five year and life of Fund periods would have been lower.

4 - Scudder Value Fund
<PAGE>

PORTFOLIO SUMMARY as of March 31, 1998
- ---------------------------------------------------------------------------
ASSET ALLOCATION
- ---------------------------------------------------------------------------
Equity Securities 76%
Cash Equivalents 24%
- --------------------------------------
100%
- --------------------------------------

A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.

The Fund's effective cash position
was actually lower at 9% of
assets, reflecting our short-term
use of S&P 500 Index futures to
gain market exposure as we
searched for stocks that met our
valuation criteria.

- --------------------------------------------------------------------------
Sectors
(Excludes 24% Cash Equivalents)
- --------------------------------------------------------------------------
Financial 21%
Manufacturing 10%
Durables 9%
Media 7%
Transportation 7%
Energy 7%
Technology 6%
Communications 6%
Service Industries 6%
Other 21%
- --------------------------------------
100%
- --------------------------------------

A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.

Sectors that performed well in
the fourth quarter of 1997
tended to lag during the first
quarter of 1998.

- --------------------------------------------------------------------------
Ten Largest Equity Holdings
(19% of Portfolio)
- --------------------------------------------------------------------------

1. WPP GROUP PLC
Advertising agency
2. BANKAMERICA CORP.
Commercial banking in California
3. MAGNA INTERNATIONAL, INC.
Manufacturer of automotive parts
4. HARRIS CORP.
Manufacturer of electronic systems,
semiconductors, communications and office
equipment
5. DELTA AIR LINES, INC.
Scheduled air transportation for passengers
6. FORD MOTOR CO.
Leading automobile manufacturer
7. AMERICAN HOME PRODUCTS CORP.
Major diversified pharmaceutical company
8. FIRST UNION CORP.
Commercial banking in the southeast
9. BELL ATLANTIC CORP.
Provider of telecommunications services
10. MOBIL CORP.
Diversified petroleum company

The Fund's strongest performers
during the period were from a
broad range of businesses,
primarily reflecting our individual
stock selection approach.

- -----------------------------------------------------------------------------
For more complete details about the Fund's investment portfolio,
see page 10. A monthly Investment Portfolio Summary and quarterly Portfolio
Holdings are available upon request.

5 - Scudder Value Fund

<PAGE>
Portfolio Management Discussion

In the following interview, Donald Hall, lead portfolio manager of Scudder Value
Fund, discusses the market environment and his team's investment strategy during
the six-month report period.

Q: How did stocks in general perform over the six-month period ended March 31,
1998?

A: Fearing a spread of the Asian economic flu, the U.S. stock market was choppy
last fall. So far this year, however, its advance has been anything but uneven.
During the first quarter of 1998, the U.S. stock market rose 15%. The continued
backdrop of growing profits and subdued inflation has been ideal for equity
investors. The financial crisis in Asia took some of the steam out of the U.S.
economy, hurting the earnings of some companies but alleviating the threat of
economic overheating in the United States.

During the final three months of last year, value stocks performed better than
the overall market. However, market sentiment changed in the first three months
of 1998 as growth stocks -- many with high price to earnings ratios -- led the
strong market. Over the six months, large capitalization stocks, which dominate
the S&P 500 Index, outpaced the broader market. The S&P 500 returned 17.22% for
the six months, while the S&P MidCap 400 Index trailed with a return of 11.94%.

Q: How did the Scudder Value Fund perform for the six-month period?

A: The Fund returned 15.61%, exceeding the 11.55% average return of growth
funds, according to Lipper Analytical Services. Longer term, the Fund returned
45.94% for the 12-month period ended March 31, 1998, versus the Lipper category
average of 42.90%.

Q: In general, what does a strong overall market mean for the Fund?

A: It is difficult for low p/e funds to keep up in a rapidly rising market. A
case in point is the Fund's outperformance of the S&P 500 and its Lipper group
in four out of the last five calendar years. The year it lagged the market,
1995, was the strongest year for the S&P 500 when it was up 37.58%. The Fund
trailed with a 30.17% return.

Q: And in down markets?

A: We believe a disciplined value orientation keeps the Fund out of speculative
sectors, and as such, provides a certain amount of protection in down markets.
Over the last five calendar years, we have seen only one slightly down year --
1994 -- and the Fund held up relatively well. Looking at downside protection in
another way, there have been 27 days in the last 12 months in which the S&P 500
declined more than 1%. The Fund outperformed on 26 of those 27 down days.

Q: What sectors and stocks contributed most to the Fund's performance over the
six months?

A: Sectors that performed best during the fourth quarter of 1997 tended to lag
during the first quarter of 1998 due to the change in character of the market
that occurred around the beginning of the year. The list of strongest
contributors is nicely mixed across many sectors. Telephone company stocks were
strong. Many investors had written off the RBOC's (regional Bell operating
companies) as dinosaurs -- Ameritech was up 50%. Retailers, led by a continued

6 - Scudder Value Fund

<PAGE>

recovery of Wal-Mart, out-performed. Utilities also recovered. The turnaround in
Unicom, up over 50%, was the most dramatic. Other stocks doubling the market
return or better included Ford, Fannie Mae, Lyondell, AMR, WPP Group, Electronic
Data Systems, Corp., Energy Group, Heinz, Tenet Healthcare, Nationwide
Financial, and Royal Caribbean.

Q: Were there any disappointing areas?

A: As a group, the Fund's energy holdings turned in barely positive returns over
the six months. These stocks were influenced by a sharp decline in the price of
crude oil. Fortunately, the Fund was relatively underweighted in the energy
sector. The Fund's exposure to technology was also light and generally
disappointing. The momentum at Philips Electronics was truncated and the stock
was off by about 10%. The position in Philips had been pared back earlier, which
mitigated the impact.

Q: In the past, you've mentioned BankAmerica, Allstate, MBIA, Ford, Harris, and
WPP Group as particularly attractive stocks. Are these still held by the Fund?

A: These stocks were all holdings at the end of the period and, except for
Allstate, were all among the 20 largest holdings. They have performed well, and
are still attractive based on our investment criteria. WPP Group is now the
Fund's largest position. This company is an unfamiliar name to most investors,
even though it is the world's largest advertising firm and the parent of such
venerable firms as J. Walter Thompson and Ogilvy and Mather. Global
advertising companies such as WPP are benefiting from the expanding budgets of
global consumer companies. The company has a leading market position, with over
300 of the Fortune 500 as clients. Recent bookings have been strong. The stock
sells at a discount not only to comparable publicly held competitors, but also
to the market.

Q: The Fund's assets increased more than 40% in the first three months of 1998
alone. Is the Fund's growth a problem?

A: No. Despite the Fund's growth, total assets are less than $600 million, a
size large enough to keep the expense ratio below the average equity fund, but
also not so large that it is difficult to manage.

Q: Are you still able to find good investment opportunities at this market
level?

A: We consider the long-term holdings previously mentioned very attractive
despite recent price appreciation. The financial sector has served the Fund well
for several years, and it remains fruitful due to a favorable macroeconomic
environment, cost savings through greater use of technology and consolidation,
and relatively low market valuations. We expect 1998 to be a year of record
consolidation for U.S. financial institutions -- not only for banks, but also
securities brokers and insurance companies. Several of the Fund's holdings have
already been affected by consolidation, including BankAmerica, Travelers,
NationsBank, EXEL, and MidOcean. New additions in the financial sector include
First Union and PMI Group. These quality companies were purchased recently at
only 15x estimated 1998 earnings. We also found excellent values among companies

7 - Scudder Value Fund

<PAGE>

in other sectors, including Delta Airlines (9x) and Sante Fe International
(13x). A highly valued market may limit absolute returns, but it can increase
the relative advantage of a low p/e portfolio.

Q: What is your market outlook?

A: Suffice it to say that the market has been much stronger than almost anybody
expected. Our job is to find the best quality companies at the best price. The
market, as defined by the S&P 500, is selling at 25x earnings estimates for
1998. This is a record high earnings multiple, but it will probably stay high
unless earnings sag materially or inflation worsens, neither of which our
economists currently expect. Attitudes toward stock ownership in this country
have been healthy for years and have only been encouraged by the lowering of the
long-term capital gains tax rate and the launching of Roth IRAs. There is also
the future possibility that we could choose to allocate a portion of our
personal Social Security Trust Fund to equities. In this context, we believe the
Fund remains an especially appropriate vehicle for those concerned about
relatively high market valuations but who wish to maintain equity exposure.

8 - Scudder Value Fund

<PAGE>

Glossary of Investment Terms

FUNDAMENTAL RESEARCH Analysis of companies based on the projected
impact of management, products, sales, and
earnings on balance sheets and income
statements. Distinct from technical analysis,
which evaluates the attractiveness of a stock
based on historical price and trading volume
movements, rather than the financial results
of the underlying company.

CYCLICAL STOCKS Stocks of companies whose earnings fluctuate
with the business cycle. Cyclical industries
include steel, cement, paper, machinery, and
autos.

GROWTH STOCK Stock of a company that has displayed greater
than average earnings growth and is expected
to continue to increase profits rapidly going
forward. Stocks of such companies usually
trade at a higher price relative to earnings
(higher p/e) and exhibit greater price
volatility.

MARKET CAPITALIZATION The value of a company's outstanding shares
of common stock, determined by multiplying
the number of shares outstanding by the share
price (Shares x Price = Market
Capitalization). The universe of publicly
traded companies is frequently divided into
large-, mid-, and small-capitalizations.

OVER/UNDER WEIGHTING Refers to the allocation of assets -- usually
by sector, industry, or country --within a
portfolio relative to the benchmark index,
(i.e. the S&P 500 Index) or an investment
universe.

PRICE/EARNINGS RATIO (P/E)(also A widely used gauge of a stock's valuation
"earnings multiple") that indicates what investors are paying for
a company's earnings on a per share basis.
Typically based on a company's projected
earnings for the next 12 months, a higher
"earnings multiple" indicates a
higher-than-expected growth rate and the
potential for greater price fluctuations.

VALUE STOCK A company whose stock price does not fully
reflect its intrinsic value, as indicated by
price/earnings ratio, price/book value ratio,
dividend yield, or some other valuation
measure, relative to its industry or the
market overall. Value stocks tend to display
less price volatility and may carry higher
dividend yields.

(Sources: Scudder Kemper Investments, Inc.; Barron's Dictionary of Finance and
Investment Terms)

9 - Scudder Value Fund

<PAGE>

Investment Portfolio as of March 31, 1998 (Unaudited)

<TABLE>
<CAPTION>
Principal Market
Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------
Repurchase Agreements 2.3%
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Repurchase Agreement with Donaldson, Lufkin & Jenrette dated 3/31/98 at 5.85%,
to be repurchased at $12,184,980 on 4/1/98, collateralized by a $11,185,000 U.S. ------------
Treasury Note, 8.5%, 11/15/2000 (Cost $12,183,000) .................................... 12,183,000 12,183,000
------------
- ------------------------------------------------------------------------------------------------------------------------------
Commercial Paper 21.2%
Abbott Lab, 5.5%, 4/27/98** ............................................................. 15,000,000 14,940,417
Barton Capital Corp., 5.57%, 4/1/98** ................................................... 20,096,000 20,096,000
General Electric Capital Corp., 5.54%, 4/15/98** ........................................ 15,000,000 14,965,375
General Motors Acceptance Corp., 5.55%, 4/9/98** ........................................ 15,000,000 14,981,500
Goldman Sachs & Co., 5.58, 4/1/98** ..................................................... 20,000,000 20,000,000
TransAmerica Finance Corp., 5.53%, 5/13/98** ............................................ 15,000,000 14,903,225
Virginia Electric & Power Co., 5.56%, 4/27/98** ......................................... 10,000,000 9,960,061
- ------------------------------------------------------------------------------------------------------------------------------
Total Commercial Paper (Cost $109,848,886) 109,846,578
- ------------------------------------------------------------------------------------------------------------------------------

Shares
- ------------------------------------------------------------------------------------------------------------------------------
Common Stocks 76.5%
- ------------------------------------------------------------------------------------------------------------------------------
Consumer Discretionary 4.1%
Department & Chain Stores 2.5%
Federated Department Stores, Inc.* ...................................................... 60,200 3,119,113
J.C. Penney Co., Inc. ................................................................... 35,700 2,702,044
May Department Stores ................................................................... 16,800 1,066,800
Nordstrom, Inc. ......................................................................... 45,500 2,903,469
Wal-Mart Stores, Inc. ................................................................... 60,000 3,048,750
------------
12,840,176
------------
Hotels & Casinos 1.0%
Mirage Resorts, Inc.* ................................................................... 119,000 2,893,188
Royal Caribbean Cruises Ltd. ............................................................ 36,300 2,543,269
------------
5,436,457
------------
Specialty Retail 0.6%
Tiffany & Co. ........................................................................... 59,700 2,906,644
------------
Consumer Staples 3.7%
Alcohol & Tobacco 1.1%
Anheuser-Busch Companies, Inc. .......................................................... 49,900 2,310,994
Philip Morris Companies, Inc. (b) ...................................................... 77,900 3,247,456
------------
5,558,450
------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

10 - Scudder Value Fund
<PAGE>

<TABLE>
<CAPTION>
Market
Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Food & Beverage 2.6%
ConAgra, Inc. ........................................................................... 63,200 2,030,300
H.J. Heinz Co. .......................................................................... 48,100 2,807,838
Interstate Bakeries Corp. ............................................................... 119,000 3,845,188
Kroger Co.* ............................................................................. 39,000 1,801,313
Unilever NV (New York shares) ........................................................... 40,800 2,799,900
------------
13,284,539
------------
Health 3.8%
Hospital Management 1.4%
Tenet Healthcare Corp.* ................................................................. 202,700 7,360,544
------------
Medical Supply & Specialty 0.7%
Becton, Dickinson & Co. ................................................................. 56,700 3,859,144
------------
Pharmaceuticals 1.7%
American Home Products Corp. (b) ........................................................ 83,300 7,944,738
Schering-Plough Corp. ................................................................... 9,800 800,538
------------
8,745,276
------------
Communications 4.7%
Telephone/Communications
Alltel Corp. ............................................................................ 36,400 1,590,225
Ameritech Corp. ......................................................................... 66,800 3,302,425
Bell Atlantic Corp. ..................................................................... 73,400 7,523,500
Century Telephone Enterprises ........................................................... 44,200 2,701,725
Compania Telefonica Nacional de Espana SA (ADR) ......................................... 12,500 1,653,125
Tele Danmark A/S (ADR) .................................................................. 100,200 4,571,625
Tele-Communications International, Inc. "A"* ............................................ 162,300 3,266,288
------------
24,608,913
------------
Financial 16.3%
Banks 7.2%
Banc One Corp. .......................................................................... 68,090 4,306,693
BankAmerica Corp. ....................................................................... 131,100 10,832,138
Bankers Trust New York Corp. ............................................................ 27,700 3,332,656
Chase Manhattan Corp. ................................................................... 25,100 3,385,363
First Chicago NBD Corp. ................................................................. 9,200 810,750
First Union Corp. ....................................................................... 136,000 7,718,000
J.P. Morgan & Co., Inc. ................................................................. 15,800 2,122,138
NationsBank Corp. ....................................................................... 35,800 2,611,163
</TABLE>

The accompanying notes are an integral part of the financial statements.

11 - Scudder Value Fund
<PAGE>

<TABLE>
<CAPTION>
Market
Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Northern Trust Corp. .................................................................... 14,200 1,061,450
Norwest Corp. ........................................................................... 27,400 1,138,813
------------
37,319,164
------------
Insurance 7.9%
AFLAC, Inc. ............................................................................. 14,700 929,775
Allstate Corp. (b) ...................................................................... 34,200 3,144,263
Cigna Corp. ............................................................................. 13,500 2,767,500
EXEL Ltd. (ADR) ......................................................................... 41,400 3,208,500
General Re Corp. ........................................................................ 21,100 4,655,188
MBIA, Inc. .............................................................................. 85,200 6,603,000
Mid Ocean, Ltd. ......................................................................... 39,100 3,030,250
Nationwide Financial Services, Inc. "A" ................................................. 33,100 1,435,713
PMI Group, Inc. ......................................................................... 13,300 1,073,975
PartnerRe Holdings Ltd. ................................................................. 86,000 4,224,750
Safeco Corp. ............................................................................ 62,200 3,399,619
Transamerica Corp. ...................................................................... 7,200 838,800
Travelers Group, Inc. ................................................................... 45,400 2,724,000
Travelers Property & Casualty Insurance Co. "A" ......................................... 34,600 1,522,400
UNUM Corp. .............................................................................. 25,800 1,423,838
------------
40,981,571
------------
Consumer Finance 0.1%
SLM Holding Corp. ....................................................................... 10,500 458,063
------------
Other Financial Companies 1.1%
American Express Credit Corp. ........................................................... 20,200 1,854,613
Federal National Mortgage Association ................................................... 59,300 3,750,725
------------
5,605,338
------------
Media 4.6%
Advertising 4.2%
Interpublic Group of Companies, Inc. .................................................... 30,250 1,879,281
WPP Group PLC (ADR) ..................................................................... 347,100 20,131,781
------------
22,011,062
------------
Cable Television 0.4%
Tele-Communications Inc. "A"* ........................................................... 66,547 2,069,196
------------
Service Industries 4.4%
EDP Services 0.4%
Electronic Data Systems Corp. ........................................................... 59,000 2,706,625
------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

12 - Scudder Value Fund
<PAGE>

<TABLE>
<CAPTION>
Market
Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Environmental Services 0.8%
Browning Ferris Industries .............................................................. 120,200 3,921,525
------------
Investment 1.7%
Donaldson, Lufkin & Jenrette Securities Corp. ........................................... 8,300 704,463
Franklin Resources, Inc. ................................................................ 41,200 2,183,600
Merrill Lynch & Co., Inc. ............................................................... 70,100 5,818,300
------------
8,706,363
------------
Miscellaneous Commercial Services 1.5%
AccuStaff, Inc.* ........................................................................ 125,000 4,312,500
Federal Express Corp.* .................................................................. 48,500 3,449,563
------------
7,762,063
------------
Durables 7.1%
Aerospace 0.3%
Lockheed Martin Corp. ................................................................... 13,782 1,550,475
------------
Automobiles 5.5%
Coltec Industries, Inc.* ................................................................ 64,400 1,610,000
Dana Corp. .............................................................................. 43,200 2,513,700
Eaton Corp. ............................................................................. 40,500 3,855,094
Ford Motor Co. .......................................................................... 126,200 8,179,338
Genuine Parts Co. ....................................................................... 12,900 491,813
Magna International, Inc. "A" ........................................................... 133,600 10,412,450
Tower Automotive, Inc.* ................................................................. 34,400 1,548,000
------------
28,610,395
------------
Tires 1.3%
Goodyear Tire & Rubber Co. .............................................................. 87,400 6,620,550
------------
Manufacturing 6.9%
Chemicals 1.6%
Praxair, Inc. ........................................................................... 83,900 4,315,606
Sigma-Aldrich Corp. ..................................................................... 105,800 3,941,050
------------
8,256,656
------------
Diversified Manufacturing 2.2%
Olin Corp. .............................................................................. 42,300 1,985,456
TRW, Inc. ............................................................................... 66,200 3,649,275
Textron, Inc. ........................................................................... 75,900 5,844,300
------------
11,479,031
------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

13 - Scudder Value Fund
<PAGE>

<TABLE>
<CAPTION>
Market
Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Electrical Products 0.5%
Philips Electronics NV (New York shares) ................................................ 37,300 2,739,219
------------
Machinery/Components/Controls 1.6%
Parker-Hannifin Group ................................................................... 141,950 7,274,938
Timken Co. .............................................................................. 23,800 804,738
------------
8,079,676
------------
Specialty Chemicals 1.0%
BetzDearborn, Inc. ...................................................................... 89,000 5,022,938
------------
Technology 4.9%
Computer Software 0.4%
Sterling Software, Inc.* ................................................................ 36,300 2,050,950
------------
Diverse Electronic Products 2.3%
Applied Materials, Inc. ................................................................. 80,900 2,856,781
Harris Corp. ............................................................................ 175,400 9,142,725
------------
11,999,506
------------
Electronic Components/Distributors 0.5%
Avnet, Inc. ............................................................................. 47,400 2,728,463
------------
Electronic Data Processing 1.5%
Compaq Computer Corp. ................................................................... 72,800 1,883,700
International Business Machines Corp. ................................................... 55,200 5,733,900
------------
7,617,600
------------
Military Electronics 0.2%
Raytheon Co. "A" ........................................................................ 20,302 1,154,676
------------
Energy 6.2%
Oil & Gas Production 0.6%
Imperial Oil Ltd. ....................................................................... 32,000 1,810,000
Union Texas Petroleum Holdings, Inc. .................................................... 62,300 1,378,388
------------
3,188,388
------------
Oil Companies 4.7%
Amoco Corp. (b) ......................................................................... 16,400 1,416,550
Chevron Corp. ........................................................................... 35,800 2,875,188
Exxon Corp. ............................................................................. 28,100 1,900,263
Mobil Corp. ............................................................................. 97,500 7,470,938
Repsol SA (ADR) ......................................................................... 74,900 3,810,538
</TABLE>

The accompanying notes are an integral part of the financial statements.

14 - Scudder Value Fund
<PAGE>

<TABLE>
<CAPTION>
Market
Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Total SA (ADR)* ......................................................................... 71,084 4,269,483
YPF SA "D" (ADR) ........................................................................ 85,300 2,900,200
------------
24,643,160
------------
Oilfield Services/Equipment 0.9%
Santa Fe International Corp. ............................................................ 121,600 4,613,200
------------
Metals & Minerals 0.1%
Coal Mining
Zeigler Coal Holding Co. ................................................................ 43,100 738,088
------------
Construction 0.2%
Building Products
American Standard Companies, Inc.* ...................................................... 19,800 908,325
------------
Transportation 4.7%
Airlines 2.0%
AMR Corp.* (b) .......................................................................... 10,800 1,546,425
Delta Air Lines, Inc. ................................................................... 73,700 8,715,025
------------
10,261,450
------------
Marine Transportation 1.0%
Knightsbridge Tankers Ltd. .............................................................. 86,100 2,453,850
NedLloyd Groep NV (ADR) ................................................................. 203,200 2,463,800
Teekay Shipping Corp. ................................................................... 5,800 180,525
------------
5,098,175
------------
Railroads 1.6%
CSX Corp. ............................................................................... 19,100 1,136,450
Canadian National Railway ............................................................... 74,600 4,798,215
Wisconsin Central Transportation Co.* ................................................... 92,700 2,610,084
------------
8,544,749
------------
Trucking 0.1%
CNF Transportation, Inc. ................................................................ 20,600 740,313
------------
Utilities 4.8%
Electric Utilities
CILCORP, Inc. ........................................................................... 60,800 2,933,600
Energy Group PLC (ADR) .................................................................. 75,600 4,257,225
Entergy Corp. ........................................................................... 140,400 4,176,900
Northeast Utilities ..................................................................... 20,000 286,250
Northern States Power Co. ............................................................... 85,400 5,038,600
</TABLE>

The accompanying notes are an integral part of the financial statements.

15 - Scudder Value Fund
<PAGE>

* Non-income producing security.

** Annualized yield at time of purchase; not a coupon rate. (Unaudited)

(a) The cost for federal income tax purposes was $435,876,055. At March 31,
1998, net unrealized appreciation for all securities based on tax cost was
$83,706,463. This consisted of aggregate gross unrealized appreciation for
all securities in which there was an excess of market value over tax cost
of $85,099,856 and aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over market value of
$1,393,393.

(b) At March 31, 1998, these securities, in part, have been pledged to cover
initial margin requirements for open futures contracts.

At March 31, 1998, open futures contracts purchased long were as follows:

<TABLE>
<CAPTION>
Aggregate
Futures Expiration Contracts Face Value ($) Market Value ($)
------- ---------- --------- -------------- ----------------
<S> <C> <C> <C> <C>
S&P 500 Index June 1998 231 62,295,873 64,160,250
---------- ----------
Total unrealized appreciation on open futures contracts purchased long ... 1,864,377
==========
</TABLE>

The accompanying notes are an integral part of the financial statements.

16 - Scudder Value Fund
<PAGE>

Financial Statements

Statement of Assets and Liabilities
as of March 31, 1998 (Unaudited)

<TABLE>
Assets
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investments, at market (identified cost $435,876,055) ............... $ 519,582,518
Cash ................................................................ 165,074
Dividends and interest receivable ................................... 382,147
Receivable for Fund shares sold ..................................... 2,106,947
Receivable for daily variation margin on open futures contracts ..... 289,865
Receivable for foreign taxes recoverable ............................ 34,371
Deferred organization expense ....................................... 2,512
Other assets ........................................................ 1,200
----------------
Total assets ........................................................ 522,564,634
Liabilities
- ----------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased ................................... 15,905,741
Payable for Fund shares redeemed .................................... 514,691
Accrued management fee .............................................. 293,327
Other payables and accrued expenses ................................. 205,677
----------------
Total liabilities ................................................... 16,919,436
-------------------------------------------------------------------------------------------
Net assets, at market value $ 505,645,198
-------------------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------------------------------------------------
Net assets consist of:
Undistributed net investment income ................................. 1,531,453
Unrealized appreciation (depreciation) on:
Investments ...................................................... 83,706,463
Futures .......................................................... 1,864,377
Foreign currency related transactions ............................ (146)
Accumulated net realized gain (loss) ................................ 15,873,478
Paid-in capital ..................................................... 402,669,573
-------------------------------------------------------------------------------------------
Net assets, at market value $ 505,645,198
-------------------------------------------------------------------------------------------
Net Asset Value
- ----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share
($505,645,198 / 20,204,529 outstanding shares of beneficial
interest, $.01 par value, unlimited number of shares ----------------
authorized) ....................................................... $25.03
----------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

17 - Scudder Value Fund
<PAGE>

Statement of Operations

six months ended March 31, 1998 (Unaudited)

<TABLE>
<CAPTION>
Investment Income
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Income:
Dividends (net of foreign taxes withheld of $47,953) ................ $ 2,551,748
Interest ............................................................ 2,269,056
-----------------
4,820,804
Expenses:
Management fee ...................................................... 1,317,578
Services to shareholders ............................................ 630,760
Custodian and accounting fees ....................................... 55,328
Trustees' fees and expenses ......................................... 22,620
Reports to shareholders ............................................. 60,684
Auditing ............................................................ 18,252
Registration fees ................................................... 92,813
Legal ............................................................... 7,384
Amortization of organization expenses ............................... 4,454
Other ............................................................... 6,197
-----------------
2,216,070
--------------------------------------------------------------------------------------------
Net investment income 2,604,734
--------------------------------------------------------------------------------------------

Realized and unrealized gain (loss) on investment transactions
- ------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from:
Investments ......................................................... 12,267,020
Futures ............................................................. 10,492,663
Foreign currency related transactions ............................... 34
-----------------
22,759,717
Net unrealized appreciation (depreciation) during the period on:
Investments ......................................................... 35,427,980
Futures ............................................................. 606,294
Foreign currency related transactions ............................... (203)
-----------------
36,034,071
--------------------------------------------------------------------------------------------
Net gain (loss) on investment transactions 58,793,788
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 61,398,522
--------------------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

18 - Scudder Value Fund
<PAGE>

Statements of Changes in Net Assets

<TABLE>
<CAPTION>
Six Months
Ended Year
March 31, Ended
1998 September 30,
Increase (Decrease) in Net Assets (Unaudited) 1997
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations:
Net investment income ....................................... $ 2,604,734 $ 2,709,350
Net realized gain (loss) from investment transactions ....... 22,759,717 17,587,309
Net unrealized appreciation (depreciation) on investment
transactions during the period ............................ 36,034,071 39,472,281
---------------- ----------------
Net increase (decrease) in net assets resulting from
operations ................................................ 61,398,522 59,768,940
---------------- ----------------
Distributions to shareholders from:
Net investment income ....................................... (3,472,885) (370,246)
---------------- ----------------
Net realized gain (loss) from investment transactions ....... (23,876,077) (7,822,998)
---------------- ----------------
Fund share transactions:
Proceeds from shares sold ................................... 204,973,414 219,411,450
Net asset value of shares issued to shareholders in
reinvestment of distributions ............................. 26,526,832 8,028,455
Cost of shares redeemed ..................................... (57,884,387) (69,910,114)
---------------- ----------------
Net increase (decrease) in net assets from Fund share
transactions .............................................. 173,615,859 157,529,791
---------------- ----------------
Increase in net assets ...................................... 207,665,419 209,105,487
Net assets at beginning of period ........................... 297,979,779 88,874,292
Net assets at end of period (including undistributed net
investment income of $1,531,453 and $2,399,604, ---------------- ----------------
respectively) ............................................. $ 505,645,198 $ 297,979,779
---------------- ----------------
Other Information
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Fund shares
Shares outstanding at beginning of period ................... 12,664,615 5,071,691
---------------- ----------------
Shares sold ................................................. 8,829,070 10,534,988
Shares issued to shareholders in reinvestment of
distributions ............................................. 1,219,064 446,770
Shares redeemed ............................................. (2,508,220) (3,388,834)
---------------- ----------------
Net increase (decrease) in Fund shares ...................... 7,539,914 7,592,924
---------------- ----------------
Shares outstanding at end of period ......................... 20,204,529 12,664,615
---------------- ----------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

19 - Scudder 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>
For the Period
December 31, 1992
Six Months (commencement of
Ended operations) to
March 31, 1998 Years Ended September 30, September 30,
(Unaudited)(a) 1997(a) 1996 1995 1994 1993
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------
Net asset value, beginning of period ..... $23.53 $17.52 $15.87 $13.08 $13.38 $12.00
Income from investment operations: -------------------------------------------------------------------------------------
Net investment income .................... .16 .34 .21 .18 .13 .10
Net realized and unrealized gain on
investments ........................... 3.23 7.22 2.40 2.86 .11 1.28
-------------------------------------------------------------------------------------
Total from investment operations ......... 3.39 7.56 2.61 3.04 .24 1.38
Less distributions from: -------------------------------------------------------------------------------------
Net investment income .................... (.24) (.07) (.04) (.12) (.11) --
Net realized gains on investment
transactions .......................... (1.65) (1.48) (.92) (.13) (.43) --
-------------------------------------------------------------------------------------
Total distributions ...................... (1.89) (1.55) (.96) (.25) (.54) --
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
Net asset value, end of period ........... $25.03 $23.53 $17.52 $15.87 $13.08 $13.38
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (%) (b) ..................... 15.61** 45.80 17.18 23.62 1.88 11.50**
Ratios and Supplemental Data
Net assets, end of period ($ millions) ... 506 298 89 68 35 29
Ratio of operating expenses, net to
average daily net assets (%) .......... 1.20* 1.24 1.25 1.25 1.25 1.25*
Ratio of operating expenses before expense
reductions, to average daily net
assets (%) ............................ 1.20* 1.28 1.31 1.44 1.61 2.16*
Ratio of net investment income to average
daily net assets (%) .................. 1.41* 1.67 1.34 1.57 1.16 1.56*
Portfolio turnover rate (%) .............. 39.1* 47.4 90.8 98.2 74.6 60.8*
Average commission rate paid (c) ......... $.0568 $.0577 $.0577 $ -- $ -- $ --
</TABLE>

(a) Based on monthly average shares outstanding during the period.
(b) Total return would have been lower had certain expenses not been reduced.
(c) Average commission rate paid per share of common and preferred stocks is
calculated for fiscal years beginning on or after October 1, 1995.
* Annualized
** Not annualized

20 - Scudder Value Fund
<PAGE>

Notes to Financial Statements

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.

Effective April 16, 1998, the Fund closed to certain new investors. Shareholders
of the Fund, and the other funds in the Scudder Family as of April 15, 1998,
qualified retirement plan investors, and certain others will continue to be
eligible to purchase shares of the Fund on a no-load basis.

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 Nasdaq Stock Market
("Nasdaq"), for which there have been sales, are valued at the most recent sale
price reported on Nasdaq. If there are no such sales, the value is the most
recent 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 other than money market securities 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. Money market
instruments purchased with an original 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.

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.

21 - Scudder Value Fund
<PAGE>

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 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, is equal to at least 100.5% of the repurchase price.

Federal Income Taxes. The Fund's policy is to comply with the requirements of
the Internal Revenue Code, 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 income 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 tax equalization. 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.

22 - Scudder Value Fund
<PAGE>

Organization Costs. Costs incurred by the Fund in connection with its
organization and initial registration of shares 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, 1998, purchases and sales of investment
securities (excluding short-term investments) aggregated $153,578,746 and
$58,261,169, respectively.

The aggregate face value of futures contracts opened and closed during the six
months ended March 31, 1998 was $266,149,981 and $241,269,474, respectively.

C. Related Parties

Effective December 31, 1997, Scudder, Stevens & Clark, Inc. ("Scudder") and The
Zurich Insurance Company ("Zurich"), an international insurance and financial
services organization, formed a new global investment organization by combining
Scudder's business with that of Zurich's subsidiary, Zurich Kemper Investments,
Inc. As a result of the transaction, Scudder changed its name to Scudder Kemper
Investments, Inc. ("Scudder Kemper" or the "Adviser"). The transaction between
Scudder and Zurich resulted in the termination of the Fund's Investment
Management Agreement with Scudder. However, a new Investment Management
Agreement (the "Management Agreement") between the Fund and Scudder Kemper was
approved by the Fund's Board of Trustees and by the Fund's Shareholders. The
Management Agreement, which is effective December 31, 1997, is the same in all
material respects as the corresponding previous Investment Management Agreement,
except that Scudder Kemper is the new investment adviser to the Fund.

Under the Management Agreement with Scudder Kemper, 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 management
services, the Adviser provides certain administrative services in accordance
with the Management Agreement. For the six months ended March 31, 1998, the
amount imposed amounted to $1,317,578, of which $293,327 is unpaid at March 31,
1998.

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, 1998, the amount charged to the Fund by SSC
aggregated $413,051, of which $93,178 is unpaid at March 31, 1998.

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,
1998, the amount charged to the Fund by STC aggregated $161,603, of which
$45,908 is unpaid at March 31, 1998.

23 - Scudder Value Fund
<PAGE>

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, 1998, the amount charged to the Fund by SFAC aggregated $35,253,
of which $6,631 is unpaid at March 31, 1998.

The Fund pays each of its Trustees not affiliated with the Adviser an annual fee
plus specified amounts for attended board and committee meetings. For the six
months ended March 31, 1998, Trustees' fees and expenses aggregated $22,620.

24 - Scudder Value Fund

<PAGE>
Shareholder Meeting Results

A Special Meeting of Shareholders (the "Meeting") of Scudder Value Fund (the
"Fund") was held on October 27, 1997, at the office of Scudder Kemper
Investments, Inc. (formerly Scudder, Stevens & Clark, Inc.), 345 Park Avenue (at
51st Street), New York, New York 10154. At the Meeting, as adjourned and
reconvened, the following matters were voted upon by the shareholders (the
resulting votes for each matter are presented below). With regard to certain
proposals, it was recommended that the Meeting be reconvened in order to provide
shareholders with an additional opportunity to return their proxies. The date of
the reconvened meeting at which the matters were decided is noted after the
proposed matter.

1. To elect Trustees.

Number of Votes:
----------------

Trustee For Withheld
------- --- --------

Paul Bancroft III 7,374,734 296,370

Sheryle J. Bolton 7,370,764 300,340

William T. Burgin 7,380,651 290,454

Thomas J. Devine 7,374,280 296,824

Keith R. Fox 7,382,919 288,185

William H. Luers 7,368,945 302,160

Wilson Nolen 7,369,662 301,442

Daniel Pierce 7,375,998 295,106

Kathryn L. Quirk 7,366,753 304,352

2. To approve the new Investment Management Agreement between the Fund and
Scudder Kemper Investments, Inc.

Number of Votes:
----------------

For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------

7,133,456 347,899 189,749 0

3. To approve the Board's discretionary authority to convert the Fund to a
master/feeder fund structure through a sale or transfer of assets or
otherwise. (Approved on December 2, 1997.)

Number of Votes:
----------------

For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------

6,504,809 604,851 264,630 296,814

25 - Scudder Value Fund

<PAGE>

4. To approve certain amendments to the Declaration of Trust. Sufficient
proxies had not been received by December 2, 1997 to approve the
amendments to the Declaration of Trust. Management has determined not to
continue to seek shareholder approval for this item.

Number of Votes:
----------------

For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------

6,742,226 492,412 304,599 296,364

5. To approve the revision of certain fundamental investment policies.

<TABLE>
<CAPTION>
Number of Votes:
----------------
Broker
Fundamental Policies For Against Abstain Non-Votes*
-------------------- --- ------- ------- ----------

<S> <C> <C> <C> <C>
5.1 Diversification 6,608,120 480,410 285,760 296,814

5.2 Borrowing 6,566,059 522,912 285,319 296,814

5.3 Senior securities 6,588,600 485,700 299,990 296,814

5.4 Concentration 6,570,339 502,139 301,813 296,814

5.5 Underwriting of securities 6,598,477 478,044 297,769 296,814

5.6 Investment in real estate 6,605,166 409,872 359,251 296,814

5.7 Purchase of physical commodities 6,581,987 433,818 358,484 296,814

5.8 Lending 6,528,831 482,461 362,997 296,814
</TABLE>

6. To ratify the selection of Coopers & Lybrand L.L.P. as the Fund's independent
accountants.

Number of Votes:
----------------

For Against Abstain
--- ------- -------

7,296,147 117,004 257,953

* Broker non-votes are proxies received by the Fund from brokers or nominees
when the broker or nominee neither has received instructions from the
beneficial owner or other persons entitled to vote nor has discretionary power
to vote on a particular matter.

26 - Scudder Value Fund

<PAGE>

This Page
intentionally
left blank.

27 - Scudder 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

William T. Burgin
Trustee; General Partner,
Bessemer Venture Partners

Thomas J. Devine
Trustee; Consultant

Keith R. Fox
Trustee; President, Exeter Capital
Management Corporation

William H. Luers
Trustee; President, The
Metropolitan Museum of Art

Wilson Nolen
Trustee; Consultant

Kathryn L. Quirk*
Trustee, Vice President and
Assistant Secretary

Robert W. Lear
Honorary Trustee;
Executive-in-Residence, Visiting
Professor, Columbia University
Graduate School
of Business

Robert G. Stone, Jr.
Honorary Trustee; Chairman
Emeritus 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
Treasurer

John R. Hebble*
Assistant Treasurer

Caroline Pearson*
Assistant Secretary

*Scudder Kemper Investments, Inc.

28 - Scudder Value Fund

<PAGE>

Investment Products and Services

The Scudder Family of Funds+++
- --------------------------------------------------------------------------------
Money Market
- ------------
Scudder U.S. Treasury Money Fund
Scudder Cash Investment Trust
Scudder Money Market Series --
Premium Shares*
Managed Shares*
Scudder Government Money Market Series --
Managed Shares*

Tax Free Money Market+
- ----------------------
Scudder Tax Free Money Fund
Scudder Tax Free Money Market Series--
Managed Shares*
Scudder California Tax Free Money Fund**
Scudder New York Tax Free Money Fund**

Tax Free+
- ---------
Scudder Limited Term Tax Free Fund
Scudder Medium Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder High Yield Tax Free Fund
Scudder California Tax Free Fund**
Scudder Massachusetts Limited Term Tax Free Fund**
Scudder Massachusetts Tax Free Fund**
Scudder New York Tax Free Fund**
Scudder Ohio Tax Free Fund**
Scudder Pennsylvania Tax Free Fund**

U.S. Income
- -----------
Scudder Short Term Bond Fund
Scudder Zero Coupon 2000 Fund
Scudder GNMA Fund
Scudder Income Fund
Scudder High Yield Bond Fund

Global Income
- -------------
Scudder Global Bond Fund
Scudder International Bond Fund
Scudder Emerging Markets Income Fund

Asset Allocation
- ----------------
Scudder Pathway Conservative Portfolio
Scudder Pathway Balanced Portfolio
Scudder Pathway Growth Portfolio
Scudder Pathway International Portfolio

U.S. Growth and Income
- ----------------------
Scudder Balanced Fund
Scudder Growth and Income Fund
Scudder S&P 500 Index Fund
Scudder Real Estate Investment Fund

U.S. Growth
- -----------
Value
Scudder Large Company Value Fund
Scudder Value Fund***
Scudder Small Company Value Fund
Scudder Micro Cap Fund

Growth
Scudder Classic Growth Fund***
Scudder Large Company Growth Fund
Scudder Development Fund
Scudder 21st Century Growth Fund

Global Growth
- -------------
Worldwide
Scudder Global Fund
Scudder International Growth and Income Fund
Scudder International Fund
Scudder Global Discovery Fund***
Scudder Emerging Markets Growth Fund
Scudder Gold Fund

Regional
Scudder Greater Europe Growth Fund
Scudder Pacific Opportunities Fund
Scudder Latin America Fund
The Japan Fund, Inc.

Industry Sector Funds
- ---------------------
Choice Series
Scudder Financial Services Fund
Scudder Health Care Fund
Scudder Technology Fund

Retirement Programs and Education Accounts
- --------------------------------------------------------------------------------

Retirement Programs
- -------------------
Traditional IRA
Roth IRA
SEP IRA
Keogh Plan
401(k), 403(b) Plans
Scudder Horizon Plan**+++ +++
(a variable annuity)

Education Accounts
- ------------------
Education IRA
UGMA/UTMA

Closed-End Funds#
- --------------------------------------------------------------------------------
The Argentina Fund, Inc.
The Brazil Fund, Inc.
The Korea Fund, Inc.
Montgomery Street Income Securities, Inc.
Scudder Global High Income Fund, Inc.
Scudder New Asia Fund, Inc.
Scudder New Europe Fund, Inc.
Scudder Spain and Portugal 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. +++Funds within categories are listed in order from
expected least risk to most risk. Certain Scudder funds may not be available for
purchase or exchange. +A portion of the income from the tax-free funds may be
subject to federal, state, and local taxes. *A class of shares of the Fund.
**Not available in all states. ***Only the Scudder Shares of the Fund are part
of the Scudder Family of Funds. +++ +++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 Kemper Investments, Inc., are traded on the New York Stock Exchange and,
in some cases, on various other stock exchanges.

29 - Scudder Value Fund

<PAGE>

Scudder Solutions
<TABLE>
<CAPTION>

Convenient ways to invest, quickly and reliably:
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Automatic Investment Plan QuickBuy

A convenient investment program in which money is Lets you purchase Scudder fund shares
electronically debited from your bank account monthly to electronically, avoiding potential mailing delays;
regularly purchase fund shares and "dollar cost average" money for each of your transactions is
-- buy more shares when the fund's price is lower and electronically debited from a previously designated bank
fewer when it's higher, which can reduce your average account.
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 QuickSell

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 previously designated.

Distributions Direct

Automatically deposits your fund distributions into the
bank account you designate within three business days
after each distribution is paid.

30 - Scudder 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 8,000 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 no Personal Counsel from Scudder(SM)
transaction fees or commissions. Scudder
shareholders can take advantage of a Scudder Developed for investors who prefer the benefits of no-load
Brokerage account already reserved for them, with Scudder funds but want ongoing professional assistance in
no minimum investment. For information about managing a portfolio. Personal Counsel(SM) is a highly
Scudder Brokerage Services, call 1-800-700-0820. customized, fee-based asset management service for
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 Investor 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 Investor Centers. Check for an Investor 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

</TABLE>

31 - Scudder Value Fund
<PAGE>
About the Fund's Adviser

Scudder Kemper Investments, Inc., is one of the largest and most experienced
investment management oganizations worldwide, managing more than $200 billion in
assets globally for mutual fund investors, retirement and pension plans,
institutional and corporate clients, insurance companies, and private family and
individual accounts. It is one of the ten largest mutual fund companies in the
U.S.

Scudder Kemper Investments has a rich heritage of innovation, integrity, and
client-focused service. In 1997, Scudder, Stevens & Clark, Inc., founded 79
years ago as one of the nation's first investment counsel organizations, joined
the Zurich Group. As a result, Zurich's subsidiary, Zurich Kemper Investments,
Inc., with 50 years of mutual fund and investment management experience, was
combined with Scudder. Headquartered in New York, Scudder Kemper Investments
offers a full range of investment counsel and asset management capabilities,
based on a combination of proprietary research and disciplined, long-term
investment strategies. With its global investment resources and perspective,
the firm seeks opportunities in markets throughout the world to meet the needs
of investors.

Scudder Kemper Investments, Inc., the global asset management firm, is a member
of the Zurich Group. The Zurich Group is an internationally recognized leader in
financial services, including property/casualty and life insurance, reinsurance,
and asset management.

This information must be preceded or accompanied by a
current prospectus.

Portfolio changes should not be considered recommendations
for action by individual investors.

SCUDDER

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