<PAGE> PAGE 1
000 B000000 09/30/1999
000 C000000 0000088051
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 6.1
000 J000000 A
001 A000000 VALUE EQUITY TRUST
001 B000000 811-1444
001 C000000 2123266200
002 A000000 TWO INTERNATIONAL PLACE
002 B000000 BOSTON
002 C000000 MA
002 D010000 02110
002 D020000 4103
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 2
007 C010100 1
007 C010200 2
007 C020200 VALUE FUND
007 C030200 N
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A00AA01 SCUDDER KEMPER INVESTMENTS, INC.
008 B00AA01 A
008 C00AA01 801-252
008 D01AA01 NEW YORK
008 D02AA01 NY
008 D03AA01 10154
010 A00AA01 SCUDDER FUND ACCOUNTING CORPORATION
010 C01AA01 BOSTON
010 C02AA01 MA
010 C03AA01 02107
010 C04AA01 2291
011 A00AA01 SCUDDER INVESTOR SERVICES, INC.
011 B00AA01 8-298
011 C01AA01 BOSTON
011 C02AA01 MA
011 C03AA01 02110
<PAGE> PAGE 2
012 A00AA01 SCUDDER SERVICE CORPORATION
012 B00AA01 84-1489
012 C01AA01 BOSTON
012 C02AA01 MA
012 C03AA01 02107
013 A00AA01 PRICEWATERHOUSECOOPERS LLP
013 B01AA01 BOSTON
013 B02AA01 MA
013 B03AA01 02110
014 A00AA01 SCUDDER INVESTOR SERVICES, INC.
014 B00AA01 8-44899
014 A00AA02 LIS SECURITIES, LLC
014 B00AA02 8-8-31022
014 A00AA03 INVESTORS BROKERAGE SEVICE, INC.
014 B00AA03 8-14989
014 A00AA04 ZURICH CAPITAL MARKETS, INC.
014 B00AA04 8-49827
014 A00AA05 KEMPER DISTRIBUTORS
014 B00AA05 8-47765
014 A00AA06 DELETE
015 A00AA01 STATE STREET BANK AND TRUST COMPANY
015 B00AA01 C
015 C01AA01 BOSTON
015 C02AA01 MA
015 C03AA01 02110
015 E01AA01 X
015 A00AA02 WESTPAC BANKING CORPORATION
015 B00AA02 S
015 C01AA02 SYDNEY
015 D01AA02 AUSTRALIA
015 E04AA02 X
015 A00AA03 ERSTE BANK DE OESTERREICHISCHEN SPARKASSEN
015 B00AA03 S
015 C01AA03 VIENNA
015 D01AA03 AUSTRIA
015 E04AA03 X
015 A00AA04 STANDARD CHARTERED BANK
015 B00AA04 S
015 C01AA04 DHAKA
015 D01AA04 BANGLADESH
015 E04AA04 X
015 A00AA05 GENERALE BANK
015 B00AA05 S
015 C01AA05 BRUSSELS
015 D01AA05 BELGIUM
015 E04AA05 X
015 A00AA06 BARCLAYS BANK OF BOTSWANA LIMITED
015 B00AA06 S
015 C01AA06 GABORONE
015 D01AA06 BOTSWANA
015 E04AA06 X
<PAGE> PAGE 3
015 A00AA07 BANKBOSTON, N.A.
015 B00AA07 S
015 C01AA07 SAO PAULO
015 D01AA07 BRAZIL
015 E04AA07 X
015 A00AA08 CANADA TRUSTCO MORTGAGE COMPANY
015 B00AA08 S
015 C01AA08 TORONTO
015 D01AA08 CANADA
015 E04AA08 X
015 A00AA09 CITIBANK, N.A.
015 B00AA09 S
015 C01AA09 SANTIAGO
015 D01AA09 CHILE
015 E04AA09 X
015 A00AA10 THE HONG KONG & SHANGHAI BANKING CORP. LTD.
015 B00AA10 S
015 C01AA10 SHANGHAI & SHENZHEN
015 D01AA10 CHINA
015 E04AA10 X
015 A00AA11 CITITRUST COLOMBIA S.A. SOCIEDAD FIDUCIARIA
015 B00AA11 S
015 C01AA11 BOGOTA
015 D01AA11 COLOMBIA
015 E04AA11 X
015 A00AA12 BARCLAYS BANK PLC
015 B00AA12 S
015 C01AA12 NICOSIA
015 D01AA12 CYPRUS
015 E04AA12 X
015 A00AA13 CESKOSLOVENSKA OBCHODNI BANKA A.S.
015 B00AA13 S
015 C01AA13 PRAGUE
015 D01AA13 CZECH REPUBLIC
015 E04AA13 X
015 A00AA14 DELETE
015 A00AA15 MERITA BANK LIMITED
015 B00AA15 S
015 C01AA15 HELSINKI
015 D01AA15 FINLAND
015 E04AA15 X
015 A00AA16 BANQUE PARIBAS
015 B00AA16 S
015 C01AA16 PARIS
015 D01AA16 FRANCE
015 E04AA16 X
015 A00AA17 DRESDNER BANK A.G.
015 B00AA17 S
015 C01AA17 BERLIN
015 D01AA17 GERMANY
015 E04AA17 X
<PAGE> PAGE 4
015 A00AA18 BARCLAYS BANK OF GHANA LIMITED
015 B00AA18 S
015 C01AA18 ACCRA
015 D01AA18 GHANA
015 E04AA18 X
015 A00AA19 NATIONAL BANK OF GREECE S.A.
015 B00AA19 S
015 C01AA19 ATHENS
015 D01AA19 GREECE
015 E04AA19 X
015 A00AA20 STANDARD CHARTERED BANK
015 B00AA20 S
015 C01AA20 HONG KONG
015 D01AA20 HONG KONG
015 E04AA20 X
015 A00AA21 CITIBANK BUDAPEST RT.
015 B00AA21 S
015 C01AA21 BUDAPEST
015 D01AA21 HUNGARY
015 E04AA21 X
015 A00AA22 DEUTSCHE BANK AG
015 B00AA22 S
015 C01AA22 BOMBAY
015 D01AA22 INDIA
015 E04AA22 X
015 A00AA23 STANDARD CHARTERED BANK
015 B00AA23 S
015 C01AA23 JAKARTA
015 D01AA23 INDONESIA
015 E04AA23 X
015 A00AA24 BANK OF IRELAND
015 B00AA24 S
015 C01AA24 DUBLIN
015 D01AA24 IRELAND
015 E04AA24 X
015 A00AA25 BANK HAPOALIM B.M.
015 B00AA25 S
015 C01AA25 TEL AVIV
015 D01AA25 ISRAEL
015 E04AA25 X
015 A00AA26 BANQUE PARIBAS
015 B00AA26 S
015 C01AA26 MILAN
015 D01AA26 ITALY
015 E04AA26 X
015 A00AA27 SUMITOMO TRUST & BANKING CO. LTD.
015 B00AA27 S
015 C01AA27 TOKYO
015 D01AA27 JAPAN
015 E04AA27 X
015 A00AA28 BARCLAYS BANK OF KENYA LIMITED
<PAGE> PAGE 5
015 B00AA28 S
015 C01AA28 NAIROBI
015 D01AA28 KENYA
015 E04AA28 X
015 A00AA29 CITIBANK, N.A.
015 B00AA29 S
015 C01AA29 SEOUL
015 D01AA29 KOREA
015 E04AA29 X
015 A00AA30 STANDARD CHARTERED BANK
015 B00AA30 S
015 C01AA30 BERHAD KUALA LUMPUR
015 D01AA30 MALAYSIA
015 E04AA30 X
015 A00AA31 CITIBANK MEXICO, S.A.
015 B00AA31 S
015 C01AA31 MEXICO CITY
015 D01AA31 MEXICO
015 E04AA31 X
015 A00AA32 MEESPIERSON N.V.
015 B00AA32 S
015 C01AA32 AMSTERDAM
015 D01AA32 NETHERLANDS
015 E04AA32 X
015 A00AA33 ANZ BANKING GROUP (NEW ZEALAND) LIMITED
015 B00AA33 S
015 C01AA33 WELLINGTON
015 D01AA33 NEW ZEALAND
015 E04AA33 X
015 A00AA34 CHRISTIANA BANK OG KREDITKASSE
015 B00AA34 S
015 C01AA34 OSLO
015 D01AA34 NORWAY
015 E04AA34 X
015 A00AA35 DEUTSCHE BANK AG
015 B00AA35 S
015 C01AA35 KARACHI
015 D01AA35 PAKISTAN
015 E04AA35 X
015 A00AA36 CITIBANK, N.A.
015 B00AA36 S
015 C01AA36 LIMA
015 D01AA36 PERU
015 E04AA36 X
015 A00AA37 STANDARD CHARTERED BANK
015 B00AA37 S
015 C01AA37 MANILA
015 D01AA37 PHILIPPINES
015 E04AA37 X
015 A00AA38 CITIBANK POLAND, S.A.
015 B00AA38 S
<PAGE> PAGE 6
015 C01AA38 WARSAW
015 D01AA38 POLAND
015 E04AA38 X
015 A00AA39 BANCO COMERCIAL PORTUGUES
015 B00AA39 S
015 C01AA39 LISBON
015 D01AA39 PORTUGAL
015 E04AA39 X
015 A00AA40 THE DEVELOPMENT BANK OF SINGAPORE LTD.
015 B00AA40 S
015 C01AA40 SINGAPORE
015 D01AA40 SINGAPORE
015 E04AA40 X
015 A00AA41 CESKOSLOVENSKA OBCHODNA BANKA A.S.
015 B00AA41 S
015 C01AA41 BRATISLAVA
015 D01AA41 SLOVAK REPUBLIC
015 E04AA41 X
015 A00AA42 STANDARD BANK OF SOUTH AFRICA LIMITED
015 B00AA42 S
015 C01AA42 JOHANNESBURG
015 D01AA42 SOUTH AFRICA
015 E04AA42 X
015 A00AA43 BANCO SANTANDER, S.A.
015 B00AA43 S
015 C01AA43 MADRID
015 D01AA43 SPAIN
015 E04AA43 X
015 A00AA44 THE HONG KONG & SHANGHAI BANKING CORP., LTD.
015 B00AA44 S
015 C01AA44 COLOMBO
015 D01AA44 SRI LANKA
015 E04AA44 X
015 A00AA45 STANDARD BANK SWAZILAND LIMITED
015 B00AA45 S
015 C01AA45 MBABANE
015 D01AA45 SWAZILAND
015 E04AA45 X
015 A00AA46 SKANDINAVISKA ENSKILDA BANKEN
015 B00AA46 S
015 C01AA46 STOCKHOLM
015 D01AA46 SWEDEN
015 E04AA46 X
015 A00AA47 UNION BANK OF SWITZERLAND AG
015 B00AA47 S
015 C01AA47 ZURICH
015 D01AA47 SWITZERLAND
015 E04AA47 X
015 A00AA48 CENTRAL TRUST OF CHINA
015 B00AA48 S
015 C01AA48 TAIPEI
<PAGE> PAGE 7
015 D01AA48 TAIWAN
015 E04AA48 X
015 A00AA49 STANDARD CHARTERED BANK
015 B00AA49 S
015 C01AA49 BANGKOK
015 D01AA49 THAILAND
015 E04AA49 X
015 A00AA50 CITIBANK, N.A.
015 B00AA50 S
015 C01AA50 ISTANBUL
015 D01AA50 TURKEY
015 E04AA50 X
015 A00AA51 DELETE
015 A00AA52 STATE STREET BANK AND TRUST COMPANY
015 B00AA52 S
015 C01AA52 LONDON
015 D01AA52 UNITED KINGDOM
015 E04AA52 X
015 A00AA53 CITIBANK, N.A.
015 B00AA53 S
015 C01AA53 MONTEVIDEO
015 D01AA53 URUGUAY
015 E04AA53 X
015 A00AA54 CITIBANK, N.A.
015 B00AA54 S
015 C01AA54 CARACAS
015 D01AA54 VENEZUELA
015 E04AA54 X
015 A00AA55 BARCLAYS BANK OF ZAMBIA LIMITED
015 B00AA55 S
015 C01AA55 LUSAKA
015 D01AA55 ZAMBIA
015 E04AA55 X
015 A00AA56 BARCLAYS BANK OF ZIMBABWE LIMITED
015 B00AA56 S
015 C01AA56 HARARE
015 D01AA56 ZIMBABWE
015 E04AA56 X
015 A00AA57 THE BANK OF BERMUDA LIMITED
015 B00AA57 S
015 C01AA57 HAMILTON
015 D01AA57 BERMUDA
015 E04AA57 X
015 A00AA58 CITIBANK, N.A.
015 B00AA58 S
015 C01AA58 BUENOS AIRES
015 D01AA58 ARGENTINA
015 E04AA58 X
015 A00AA59 STATE STREET BANK & TRUST COMPANY
015 B00AA59 C
015 C01AA59 BOSTON
<PAGE> PAGE 8
015 C02AA59 MA
015 C03AA59 02110
015 E01AA59 X
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 69
019 C00AA00 SCUDDERKEM
020 A000001 ALEX BROWN & SONS
020 B000001 0000000000
020 C000001 265
020 A000002 PAINE WEBBER
020 B000002 0000000000
020 C000002 203
020 A000003 SMITH BARNEY SHEARSON
020 B000003 0000000000
020 C000003 194
020 A000004 BEAR STEARNS
020 B000004 0000000000
020 C000004 188
020 A000005 DONALDSON LUFKIN
020 B000005 0000000000
020 C000005 179
020 A000006 GOLDMAN, SACHS & CO.
020 B000006 0000000000
020 C000006 158
020 A000007 SG WARBUG & CO.
020 B000007 0000000000
020 C000007 149
020 A000008 LEHMAN BROTHERS SECURITIES
020 B000008 0000000000
020 C000008 142
020 A000009 COWEN
020 B000009 0000000000
020 C000009 132
020 A000010 MERRILL LYNCH
020 B000010 0000000000
020 C000010 130
021 000000 3044
022 A000001 DONALDSON LUF & JEN FIXED INC.
022 B000001 13-2741729
022 C000001 11022123
022 D000001 0
022 A000002 STATE STREET BANK
022 B000002 04-1867445
022 C000002 7525886
022 D000002 660
022 A000003 SALOMON BROTHERS
022 B000003 13-3082694
022 C000003 496103
022 D000003 4375
022 A000004 GOLDMAN SACHS
<PAGE> PAGE 9
022 B000004 13-5108880
022 C000004 159447
022 D000004 12030
022 A000005 WILLIAMS CAPITAL
022 B000005 0000000000
022 C000005 138215
022 D000005 14979
022 A000006 FIRST CHICAGO CAP MKTS
022 B000006 36-3595942
022 C000006 133509
022 D000006 0
022 A000007 LEHMAN BROTHERS SECURITIES
022 B000007 13-2518466
022 C000007 106897
022 D000007 14963
022 A000008 DRESDNER
022 B000008 13-6172414
022 C000008 39956
022 D000008 0
022 A000009 BROWN BROTHERS HARRIMAN
022 C000009 34044
022 D000009 0
022 A000010 MESEROW
022 B000010 0000000000
022 C000010 29983
022 D000010 0
023 C000000 20006231
023 D000000 112280
024 00AA00 N
025 D00AA01 0
025 D00AA02 0
025 D00AA03 0
025 D00AA04 0
025 D00AA05 0
025 D00AA06 0
025 D00AA07 0
025 D00AA08 0
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
029 00AA00 Y
030 A00AA00 419
030 B00AA00 5.75
030 C00AA00 0.00
<PAGE> PAGE 10
031 A00AA00 27
031 B00AA00 0
032 00AA00 392
033 00AA00 0
034 00AA00 Y
035 00AA00 129
036 A00AA00 Y
036 B00AA00 0
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039 00AA00 Y
040 00AA00 Y
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042 D00AA00 0
042 E00AA00 0
042 F00AA00 0
042 G00AA00 0
042 H00AA00 100
043 00AA00 263
044 00AA00 0
054 A00AA00 Y
054 B00AA00 Y
054 C00AA00 N
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 N
054 H00AA00 Y
054 I00AA00 N
054 J00AA00 Y
054 K00AA00 N
054 L00AA00 N
054 M00AA00 Y
054 N00AA00 N
054 O00AA00 Y
055 A00AA00 N
055 B00AA00 N
056 00AA00 Y
057 00AA00 N
058 A00AA00 N
059 00AA00 Y
060 A00AA00 Y
060 B00AA00 Y
061 00AA00 2500
062 A00AA00 N
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062 C00AA00 0.0
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<PAGE> PAGE 11
062 E00AA00 0.0
062 F00AA00 0.0
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063 B00AA00 0.0
066 A00AA00 Y
066 B00AA00 N
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066 D00AA00 N
066 E00AA00 N
066 F00AA00 N
066 G00AA00 N
067 00AA00 N
068 A00AA00 N
068 B00AA00 N
069 00AA00 N
077 A000000 Y
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077 C000000 N
077 D000000 Y
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 Y
078 000000 N
080 A00AA00 ICI MUTUAL INSURANCE COMPANY
080 B00AA00 NATIONAL UNION / CHUBB
080 C00AA00 150000
081 A00AA00 Y
<PAGE> PAGE 12
081 B00AA00 205
082 A00AA00 N
082 B00AA00 0
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084 A00AA00 N
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085 A00AA00 Y
085 B00AA00 N
028 A010200 16084
028 A020200 1
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045 000200 Y
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<PAGE> PAGE 13
048 E020200 0.000
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048 K020200 0.650
049 000200 N
050 000200 N
051 000200 N
052 000200 N
053 A000200 N
070 A010200 Y
070 A020200 Y
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070 C010200 Y
070 C020200 N
070 D010200 Y
070 D020200 N
070 E010200 Y
070 E020200 N
070 F010200 Y
070 F020200 Y
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070 H010200 Y
070 H020200 N
070 I010200 N
070 I020200 N
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070 J020200 N
070 K010200 Y
070 K020200 N
070 L010200 Y
070 L020200 N
070 M010200 Y
070 M020200 N
070 N010200 Y
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070 O010200 N
070 O020200 N
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<PAGE> PAGE 14
070 Q020200 N
070 R010200 N
070 R020200 N
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<PAGE> PAGE 15
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SIGNATURE JOHN MILLETTE
TITLE VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the Value
Fund Annual Report Class A for the fiscal year ended 9/30/1999 and is qualified
in its entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 2
<NAME> Value Fund - Class A
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1998
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 438,199,025
<INVESTMENTS-AT-VALUE> 484,604,604
<RECEIVABLES> 2,276,492
<ASSETS-OTHER> 4,431
<OTHER-ITEMS-ASSETS> 498
<TOTAL-ASSETS> 486,886,025
<PAYABLE-FOR-SECURITIES> 315,500
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,810,832
<TOTAL-LIABILITIES> 3,126,332
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 428,003,984
<SHARES-COMMON-STOCK> 17,792,302
<SHARES-COMMON-PRIOR> 22,099,599
<ACCUMULATED-NII-CURRENT> 2,922,969
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6,427,161
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 46,405,579
<NET-ASSETS> 483,759,693
<DIVIDEND-INCOME> 9,500,734
<INTEREST-INCOME> 1,684,496
<OTHER-INCOME> 0
<EXPENSES-NET> 8,074,061
<NET-INVESTMENT-INCOME> 3,111,169
<REALIZED-GAINS-CURRENT> 6,166,998
<APPREC-INCREASE-CURRENT> 62,680,573
<NET-CHANGE-FROM-OPS> 71,958,740
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (237,416)
<DISTRIBUTIONS-OF-GAINS> (1,241,379)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 115,981,063
<NUMBER-OF-SHARES-REDEEMED> (104,695,242)
<SHARES-REINVESTED> 1,372,649
<NET-CHANGE-IN-ASSETS> (34,013,576)
<ACCUMULATED-NII-PRIOR> 4,306,919
<ACCUMULATED-GAINS-PRIOR> 22,475,916
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,893,119
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 8,152,627
<AVERAGE-NET-ASSETS> 37,507,000
<PER-SHARE-NAV-BEGIN> 21.19
<PER-SHARE-NII> 0.15
<PER-SHARE-GAIN-APPREC> 2.62
<PER-SHARE-DIVIDEND> (0.17)
<PER-SHARE-DISTRIBUTIONS> (0.90)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 22.89
<EXPENSE-RATIO> 1.41
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the Value
Fund Annual Report Class B for the fiscal year ended 9/30/1999 and is qualified
in its entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 22
<NAME> Value Fund - Class B
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1998
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 438,199,025
<INVESTMENTS-AT-VALUE> 484,604,604
<RECEIVABLES> 2,276,492
<ASSETS-OTHER> 4,431
<OTHER-ITEMS-ASSETS> 498
<TOTAL-ASSETS> 486,886,025
<PAYABLE-FOR-SECURITIES> 315,500
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,810,832
<TOTAL-LIABILITIES> 3,126,332
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 428,003,984
<SHARES-COMMON-STOCK> 17,792,302
<SHARES-COMMON-PRIOR> 22,099,599
<ACCUMULATED-NII-CURRENT> 2,922,969
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6,427,161
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 46,405,579
<NET-ASSETS> 483,759,693
<DIVIDEND-INCOME> 9,500,734
<INTEREST-INCOME> 1,684,496
<OTHER-INCOME> 0
<EXPENSES-NET> 8,074,061
<NET-INVESTMENT-INCOME> 3,111,169
<REALIZED-GAINS-CURRENT> 6,166,998
<APPREC-INCREASE-CURRENT> 62,680,573
<NET-CHANGE-FROM-OPS> 71,958,740
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (48,553)
<DISTRIBUTIONS-OF-GAINS> (1,035,831)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 21,274,145
<NUMBER-OF-SHARES-REDEEMED> (12,396,396)
<SHARES-REINVESTED> 1,004,640
<NET-CHANGE-IN-ASSETS> (34,013,576)
<ACCUMULATED-NII-PRIOR> 4,306,919
<ACCUMULATED-GAINS-PRIOR> 22,475,916
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,893,119
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 8,152,627
<AVERAGE-NET-ASSETS> 29,519,000
<PER-SHARE-NAV-BEGIN> 21.11
<PER-SHARE-NII> (0.07)
<PER-SHARE-GAIN-APPREC> 2.62
<PER-SHARE-DIVIDEND> (0.04)
<PER-SHARE-DISTRIBUTIONS> (0.90)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 22.72
<EXPENSE-RATIO> 2.29
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the Value
Fund Annual Report Class C for the fiscal year ended 9/30/1999 and is qualified
in its entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 23
<NAME> Value Fund - Class C
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1998
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 438,199,025
<INVESTMENTS-AT-VALUE> 484,604,604
<RECEIVABLES> 2,276,492
<ASSETS-OTHER> 4,431
<OTHER-ITEMS-ASSETS> 498
<TOTAL-ASSETS> 486,886,025
<PAYABLE-FOR-SECURITIES> 315,500
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,810,832
<TOTAL-LIABILITIES> 3,126,332
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 428,003,984
<SHARES-COMMON-STOCK> 17,792,302
<SHARES-COMMON-PRIOR> 22,099,599
<ACCUMULATED-NII-CURRENT> 2,922,969
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6,427,161
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 46,405,579
<NET-ASSETS> 483,759,693
<DIVIDEND-INCOME> 9,500,734
<INTEREST-INCOME> 1,684,496
<OTHER-INCOME> 0
<EXPENSES-NET> 8,074,061
<NET-INVESTMENT-INCOME> 3,111,169
<REALIZED-GAINS-CURRENT> 6,166,998
<APPREC-INCREASE-CURRENT> 62,680,573
<NET-CHANGE-FROM-OPS> 71,958,740
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (11,523)
<DISTRIBUTIONS-OF-GAINS> (226,181)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 52,988,891
<NUMBER-OF-SHARES-REDEEMED> (51,292,326)
<SHARES-REINVESTED> 223,904
<NET-CHANGE-IN-ASSETS> (34,013,576)
<ACCUMULATED-NII-PRIOR> 4,306,919
<ACCUMULATED-GAINS-PRIOR> 22,475,916
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,893,119
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 8,152,627
<AVERAGE-NET-ASSETS> 5,523,000
<PER-SHARE-NAV-BEGIN> 21.13
<PER-SHARE-NII> (0.05)
<PER-SHARE-GAIN-APPREC> 2.61
<PER-SHARE-DIVIDEND> (0.04)
<PER-SHARE-DISTRIBUTIONS> (0.90)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 22.75
<EXPENSE-RATIO> 2.34
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the Value
Fund Annual Report Class S for the fiscal year ended 9/30/1999 and is qualified
in its entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 24
<NAME> Value Fund - Class S
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1998
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 438,199,025
<INVESTMENTS-AT-VALUE> 484,604,604
<RECEIVABLES> 2,276,492
<ASSETS-OTHER> 4,431
<OTHER-ITEMS-ASSETS> 498
<TOTAL-ASSETS> 486,886,025
<PAYABLE-FOR-SECURITIES> 315,500
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,810,832
<TOTAL-LIABILITIES> 3,126,332
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 428,003,984
<SHARES-COMMON-STOCK> 17,792,302
<SHARES-COMMON-PRIOR> 22,099,599
<ACCUMULATED-NII-CURRENT> 2,922,969
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6,427,161
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 46,405,579
<NET-ASSETS> 483,759,693
<DIVIDEND-INCOME> 9,500,734
<INTEREST-INCOME> 1,684,496
<OTHER-INCOME> 0
<EXPENSES-NET> 8,074,061
<NET-INVESTMENT-INCOME> 3,111,169
<REALIZED-GAINS-CURRENT> 6,166,998
<APPREC-INCREASE-CURRENT> 62,680,573
<NET-CHANGE-FROM-OPS> 71,958,740
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (4,164,869)
<DISTRIBUTIONS-OF-GAINS> (19,711,211)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 131,356,073
<NUMBER-OF-SHARES-REDEEMED> (258,426,354)
<SHARES-REINVESTED> 23,313,600
<NET-CHANGE-IN-ASSETS> (34,013,576)
<ACCUMULATED-NII-PRIOR> 4,306,919
<ACCUMULATED-GAINS-PRIOR> 22,475,916
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,893,119
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 8,152,627
<AVERAGE-NET-ASSETS> 485,537,000
<PER-SHARE-NAV-BEGIN> 21.20
<PER-SHARE-NII> 0.15
<PER-SHARE-GAIN-APPREC> 2.62
<PER-SHARE-DIVIDEND> (0.19)
<PER-SHARE-DISTRIBUTIONS> (0.90)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 22.88
<EXPENSE-RATIO> 1.39
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Trustees of Value Equity Trust:
In planning and performing our audit of the financial statements of Value Fund,
a series of Value Equity Trust (the "Fund"), for the year ended September 30,
1999, we considered its internal control, including control activities for
safeguarding securities, in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and to comply with
the requirements of Form N-SAR, not to provide assurance on internal control.
The management of the Fund is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit pertain to the
entity's objective of preparing financial statements for external purposes that
are fairly presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of assets against
unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, errors or fraud may occur
and not be detected. Also, projection of any evaluation of internal control to
future periods is subject to the risk that controls may become inadequate
because of changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or more
of the internal control components does not reduce to a relatively low level the
risk that misstatements caused by error or fraud in amounts that would be
material in relation to the financial statements being audited may occur and not
be detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters involving
internal control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above as of
September 30, 1999.
This report is intended solely for the information and use of the Trustees,
management, and the Securities and Exchange Commission and is not intended to be
and should not be used by anyone other than the specified parties.
/s/PricewaterhouseCoopers LLP
November 12, 1999
SCUDDER
Scudder Value Fund
Supplement to Prospectus
Dated February 1, 1999
The following text replaces the first three paragraphs under the section
entitled "Fund Summary -- Investment objective and principal strategies" on page
1 of the fund's prospectus:
Value Fund seeks to provide long-term growth of capital through investment in
undervalued equity securities. The fund invests primarily in the stock of
larger, established U.S. companies that the fund's portfolio management team
believes are undervalued in the marketplace.
Stocks trade at a discount for many reasons. Typically, these companies, or
their industries, have fallen out of favor with investors because of such things
as earnings disappointments, negative industry or economic events, or investor
skepticism. As a result, their stock prices may not accurately reflect their
long-term business potential. Accordingly, the prices of these stocks may rise
as business fundamentals improve or as investor perceptions change. For example,
stock prices are often affected beneficially when a company's earnings exceed
general expectations or when investors begin to appreciate the full extent of a
company's business potential.
The following text replaces the section entitled "Principal Risks -- Value
Investing Risk" on page 2 of the fund's prospectus:
Value Investing Risk. The determination that a stock is undervalued is
subjective; the market may not agree, and a stock's price may not rise to what
the investment manager believes is its full value. It may even decrease in
value.
The following text replaces the section entitled "About the Fund -- Principal
strategies and investments" on pages 4 and 5 of the fund's prospectus:
The fund invests at least 80% of its assets in equity securities, primarily
common stocks of larger established domestic companies with market
capitalizations of at least $1 billion. The investment manager uses in-depth
fundamental and quantitative research to identify companies that are currently
undervalued in relation to future business prospects.
The portfolio management team uses a proprietary computer model to rank the 1000
stocks that comprise the Russell 1000 Index -- a widely used large stock
<PAGE>
universe -- based on their relative valuations. A company's valuation is
measured by comparing its stock price to its business fundamentals, such as
sales, earnings or book value. The portfolio management team focuses on the
stocks with the lowest valuations, which are further analyzed and rated using
fundamental research, such as an examination of a company's historical earnings
patterns, sales growth and profit margins in order to assess the likelihood of a
rebound in the stock price if a company's business fundamentals improve or
market conditions change.
In an effort to manage the risk exposure of the fund, the portfolio management
team then assesses the expected volatility of the fund and the potential impact
the most promising of the stocks may have on the fund's risk level. Based on
this information, the fund's portfolio management team selects approximately
60-90 stocks that it believes offer the greatest potential for attractive
long-term gains.
The fund typically sells a stock when its price is no longer considered to be a
value, it is less likely to benefit from the current market or economic
environment, it experiences deteriorating fundamentals or its price performance
falls short of the portfolio management team's expectations.
For temporary defensive purposes, the fund may invest without limit in cash and
cash equivalents. Because this defensive policy differs from the fund's
investment objective, the fund may not achieve its goals during a defensive
period.
While not principal investments or strategies of the fund, the fund may utilize
other investments and investment techniques that may impact fund performance,
including options, futures and other strategic transactions.
More information about these and other investments and strategies of the fund is
provided in the Statement of Additional Information. Of course, there can be no
guarantee that, by following this investment strategy, the fund will achieve its
objective.
The following text replaces the section entitled "About the Fund -- Additional
principal risks" on page 5 of the fund's prospectus:
Equity investing risk. An investment in the common stock of a company represents
a proportionate ownership interest in that company. Therefore, the fund
participates in the success or failure of any company in which it holds stock.
Compared to other classes of financial assets, such as bonds or cash
equivalents, common stocks have historically offered a greater potential for
gain on investment. However, the market value of common stocks can fluctuate
significantly, reflecting such things as the business performance of the issuing
<PAGE>
company, investors' perceptions of the company or the overall stock market and
general economic or financial market movements.
Inflation risk. There is a possibility that the rising prices of goods and
services may have the effect of offsetting a fund's real return.
The following information replaces the disclosure concerning the fund's Lead
Manager in the "Portfolio management" section on page 7 of the fund's
prospectus:
Lois Friedman Roman is the Lead Manager for the Scudder Value Fund. Ms.
Roman joined the team of the fund in 1999, and joined Scudder Kemper in
1994 as an equity analyst. Prior to joining the Adviser, she was an analyst
for an unaffiliated investment management firm for three years. She has ten
years of investment experience as an equity analyst.
The following information replaces the disclosure concerning the fund's Manager
in the "Portfolio management" section on page 7 of the fund's prospectus:
Kathleen T. Millard is a Manager for the Scudder Value Fund. Ms. Millard
joined the team of the fund in 1999, and joined Scudder Kemper in 1991 as a
portfolio manager. She has 15 years of investment experience and has been a
portfolio manager since 1986.
June 30, 1999
