SCUDDER
- --------------------------------------------------------------------------------
EQUITY/DOMESTIC
- --------------------------------------------------------------------------------
Scudder Select Funds
Scudder Select 500
Fund
Fund #310
Scudder Select 1000
Growth Fund
Fund #311
Semiannual Report
August 31, 1999
Scudder Select 500 Fund seeks to provide long-term growth and income through
investment in selected stocks of companies in the S&P 500(R) Index.
Scudder Select 1000 Growth Fund seeks to provide long-term growth of capital
through investment in selected stocks of companies in the Russell 1000(R) Growth
Index.
Two no-load funds with no commissions to buy, sell, or exchange shares.
<PAGE>
Contents
- --------------------------------------------------------------------------------
4 Letter from the Funds' President
6 Portfolio Management Discussion
Select 500 Fund
12 Portfolio Summary
16 Investment Portfolio
Select 1000 Growth Fund
14 Portfolio Summary
25 Investment Portfolio
34 Financial Statements
38 Financial Highlights
40 Notes to Financial Statements
43 Officers and Trustees
44 Investment Products and Services
46 Scudder Solutions
2
<PAGE>
Scudder Select Funds
- --------------------------------------------------------------------------------
Scudder Select 500 Fund ticker symbol SSFFX fund number 310
Scudder Select 1000 Growth Fund ticker symbol STHGX fund number 311
- --------------------------------------------------------------------------------
Date of Funds' o Scudder Select Funds' discipline of
Inception: excluding the least attractive stocks in
5/17/99 their respective investment universes was
off to a great start as both funds
outperformed their benchmarks for the
abbreviated period that ended
Total Net August 31, 1999.
Assets as
of 8/31/99 -- o Scudder Select 500 Fund's -0.58% return
surpassed the -1.06% return of the S&P 500
Select 500: Index^1 for the period from May 17 to August
$34.4 million 31, 1999.
Select 1000: o Scudder Select 1000 Fund's 2.50% return
$21.3 million surpassed the 1.59% return of the Russell
1000 Growth Index^2 for the period from May
17 to August 31, 1999.
o The funds' neutral stance with regard to
industry, sector, and market cap weights was
an important contributor to performance as
the investment environment shifted
significantly during the period.
^1 "Standard & Poor's (R)," "S&P (R)," "S&P 500 (R)," "Standard & Poor's 500,"
and "500" are trademarks of The McGraw-Hill Companies, Inc. and have been
licensed for use by Scudder Kemper Investments, Inc. The Scudder Select 500 Fund
is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard &
Poor's makes no representation regarding the advisability of investing in the
fund.
^2 The Russell 1000 (R) Growth Index is a trademark/service mark of the Frank
Russell Company. Russell is a trademark of the Frank Russell Company. These
trademarks and service marks have been licensed for use by Scudder Kemper
Investments, Inc. Frank Russell Company is the owner of the copyrights relating
to, and the source of, the Russell 1000 (R) Growth Index. Scudder Select 1000
Growth Fund is not promoted, sponsored or endorsed by, nor in any way affiliated
with Frank Russell Company. Frank Russell Company is not responsible for and has
not reviewed Scudder Select 1000 Growth Fund nor any associated literature or
publications and Frank Russell Company makes no representation or warranty,
express or implied, as to its accuracy, or completeness, or otherwise.
3
<PAGE>
Letter from the Funds' President
- --------------------------------------------------------------------------------
Dear Shareholders,
We are pleased to present the first semiannual report for the Scudder Select
Funds for the abbreviated period from May 17 to August 31, 1999. These funds are
off to a great start, with both surpassing the returns of their respective
benchmarks for the three-and-one-half month period. While it may be early to
laud this performance, we think it is a good sign of what investors should
expect going forward.
Each fund's approach, which excludes the 20% least attractive stocks in the S&P
500 or Russell 1000 Growth indices, is unique among retail mutual funds. We
think that this strategy -- primarily available to institutional investors --
should appeal to those seeking to outperform these benchmarks while reducing the
risk associated with not holding all of the securities in the particular index.
Historically, Wall Street analysts assign more buy ratings to stocks than sell
ratings, resulting in an unequal bias for purchasing securities. While domestic
equities have generally risen with time, some stocks have not. Over the last few
years it has become apparent that selling potential laggards is of equal or
greater importance to portfolio performance. These funds attempt to do just that
- -- eliminate the weakest stocks and minimize the systematic tracking error
versus an index using the remaining stocks.
4
<PAGE>
The funds' portfolio managers, Robert Tymoczko and Phil Fortuna, discuss the
funds' performance and investment strategy for the abbreviated period beginning
on page 6. We encourage you to read it.
Thank you for your investment in the Scudder Select Funds. For periodic updates
on your fund visit our Web site at www.scudder.com, or call us at 1-800-SCUDDER
(1-800-728-3337).
Sincerely,
/s/Lynn S. Birdsong
Lynn S. Birdsong
President,
Scudder Select Funds
5
<PAGE>
Portfolio Management Discussion
- --------------------------------------------------------------------------------
August 31, 1999
Lead portfolio manager Robert Tymoczko and portfolio manager Philip S. Fortuna
recently reviewed the market environment and funds' performance from the
commencement of operations on May 17 to August 31, 1999.
Q: How did the funds perform over the abbreviated period?
A: Although the funds have only been in existence for a little over three
months, they have performed well versus their respective benchmarks. For this
short period from May 17 to August 31, 1999, Scudder Select 500 Fund's -0.58%
return exceeded the -1.06% return of the unmanaged Standard & Poor's 500 Index,
and Scudder Select 1000 Fund's 2.50% return surpassed the 1.59% return of the
unmanaged Russell 1000 Growth Index.
Q: What has been the context of this performance?
A: Until March, market performance had been dominated by a handful of large-cap
growth stocks, as investors preferred companies that have demonstrated the
ability to produce sustainable earnings growth. However, the investment
environment has been changing this year as interest rates have continued to
rise. The higher rate environment discounted the earnings of many high growth
companies, and market performance broadened, especially in the second calendar
quarter to include smaller-cap and value stocks. In July and August we saw
another shift as many large-cap growth stocks returned to favor. The strength of
growth stocks is evident in the slightly stronger performance of the Select 1000
Growth Fund versus the Select 500 Fund for the period.
Q: Given your strategy of investing in stocks rated in the top four quintiles of
your model while excluding the fifth quintile, how did this type of market help
or hinder performance?
A: This has been one of the more difficult environments for this type of fund.
When a few stocks lead performance, broadly diversified portfolios -- such as
these funds --
6
<PAGE>
face an uphill battle. Given the challenging environment, we are pleased with
the funds' initial outperformance. We attribute part of these returns to the
portfolio's diversification and a neutral approach to weighting industry sectors
and fundamental factors. This strategy eliminates the risk of attempting to make
the right sector call by over- or underweighting a sector or factor. As a
result, the funds participate directly in the performance of each sector in
proportion to their benchmark index, and typically are not left behind if one
area is performing especially well. When the market returns to its traditional
focus on fundamentals, as we expect, the funds should benefit more than in the
current environment.
Q: You refer to the fund's strategy as an "addition by subtraction" approach.
What do you mean?
A: Our goal is to outperform the benchmark index for each fund -- that's the S&P
500 Index for the Select 500 Fund and the Russell 1000 Growth Index for the
Select 1000 Fund -- by eliminating the 20% of assets that have the lowest
expected return while replicating the fundamental characteristics of the index
by selecting stocks from the remaining 80%. In short, both funds attempt to add
value by "subtracting" stocks that we expect to underperform and investing among
the rest. For most investors, the stocks that will cause the greatest future
underperformance are ones that are already owned. That is why we concentrate
primarily on identifying stocks to avoid. This is a very different approach from
that used by most fundamental analysts and portfolio managers who focus almost
exclusively on which stocks to buy.
Q: How does the stock selection process work?
A: We use a proprietary computer model to systematically evaluate stocks in the
benchmarks. This analysis is based on a multi-factor model that evaluates each
stock's growth prospects, relative valuation, and price momentum. In each fund,
stocks are assigned a ranking by quintile. Quintile 1 consists of the highest
rated stocks and Quintile 5 consists
7
<PAGE>
of the lowest rated stocks. Stocks ranked in the bottom, or fifth, quintile are
excluded from a fund's investment universe. From among the remaining stocks an
optimization is performed to create a portfolio with systematic risk
characteristics that closely match the fund's benchmark. Examples of risk
characteristics include exposure to specific industries, price-to-earnings
ratios, debt-equity ratios, price volatility, and market capitalization. If the
fundamental factor model calls for it, the characteristics of an excluded stock
can be replicated by increasing the weighting of stocks in the portfolio that
have the same fundamentals as that of the excluded stock. This results in a
portfolio with fundamental characteristics nearly identical to the benchmark.
Over time, each fund is rebalanced periodically as the rankings change.
This investment process is intended to create funds with relatively low
"tracking error," or return deviation compared to its respective index. Although
we believe the tracking errors will be low relative to typical U.S. stock funds,
the investment approach is expected to help the funds to outperform their
benchmarks over an extended period.
Q: What are some of the characteristics of a stock that would be eliminated?
A: In selecting stocks to eliminate from the investment universe, we attempt to
identify those that have unattractive valuations, deteriorating fundamentals,
and a history of disappointing shareholders. We use four types of factors to
evaluate a security: 1) valuation factors, such as price-to-forward earnings and
price-to-cash flow ratios, to identify those assets with unattractive
valuations; 2) earnings/momentum factors, such as short- and long-term momentum,
to determine those securities that have deteriorating fundamentals and a history
of disappointing shareholders; 3) expectational factors, such as earnings
revisions, to identify the markets' recognition of a deterioration in stock
fundamentals; and 4)
8
<PAGE>
risk adversity factors, such as beta or dividend yield, to isolate those stocks
that have higher expected downside risk.
Q: Do you have some examples of stocks that were eliminated from your universe
of investible securities?
A: Yes. Most were weak performers. Over this short period we excluded several
from Scudder Select 500 Fund, including American Home Products, Waste Management
(down over 50% in July), Coca-Cola, and Autodesk. For Scudder Select 1000 Fund,
the list of excluded companies included Health Management Associates, Earthlink
(an Internet service provider that competes with America Online), Amazon,
Coca-Cola, and Network Solutions. All of these stocks were rated a "5" by each
model and were not purchased by the funds.
Q: Your investment process is different from other mutual funds. How is it
unique?
A: Our approach differs from other mutual funds in that we attempt to isolate
and eliminate those stocks that we expect to underperform the market. Most
mutual fund managers and analysts focus exclusively on which securities to
purchase. This focus on the "buy" side of portfolio management is evident in the
fact that the vast majority of analysts' recommendations are buy recommendations
while very few are sell recommendations. We believe it is much easier to
identify securities that will underperform than those that will outperform. The
funds take advantage of this asymmetry by concentrating on the sells.
Q: Are these funds substitutes for an index fund?
A: No. The funds are not substitutes for an index fund. Although the funds have
index-like risk in terms of their systematic risk, the elimination of 20% of the
assets in the investment universe leads to stock-specific risk. In other words,
the funds do not make factor (e.g., price/earnings or market capitalization) or
industry bets, but make bets against individual stocks. In particular, the funds
make
9
<PAGE>
bets against the 20% of the assets in the investment universe with the lowest
expected return.
Q: What is your outlook?
A: As investors who are focused on individual security selection, we do not make
portfolio allocations based on our view of the markets or the economy. We view
the most recent period of dominance by a handful of large-cap growth stocks as
unusual and unsustainable over the long term. As a result, we expect market
leadership to broaden to include more stocks -- a condition we think will add to
the performance of both funds over time.
10
<PAGE>
Scudder Select Funds:
A Team Approach to Investing
Scudder Select Funds are managed by a team of Scudder Kemper Investments, Inc.
(the "Adviser") professionals, each of whom plays an important role in the
funds' management process. Team members work together to develop investment
strategies and select securities for the funds' portfolios. They are supported
by the Adviser's large staff of economists, research analysts, traders, and
other investment specialists who work in our offices across the United States
and abroad. We believe our team approach benefits fund investors by bringing
together many disciplines and leveraging our extensive resources.
Lead portfolio manager Robert D. Tymoczko joined the Adviser in 1997 as a
quantitative research analyst. Since 1998 Mr. Tymoczko has been working as a
portfolio manager for the Adviser. From 1994 to 1995, Mr. Tymoczko worked as an
economic consultant. From 1995 until he joined the Adviser, Mr. Tymoczko worked
toward an M.B.A. degree with a concentration in finance and econometrics. He
began his investment career in 1992.
Portfolio manager Philip S. Fortuna joined the Adviser in 1986. Since 1998 Mr.
Fortuna has been director of the Adviser's quantitative group, responsible for
quantitative research and all quantitative products.
11
<PAGE>
Portfolio Summary
- --------------------------------------------------------------------------------
August 31, 1999
Scudder Select 500 Fund
- --------------------------------------------------------------------------------
Asset Allocation
- --------------------------------------------------------------------------------
A GRAPH IN THE FORM OF A PIE CHART APPEARS HERE, ILLUSTRATING THE EXACT DATA
POINTS IN THE TABLE BELOW.
Common Stocks 99% The fund pursues a fully
Cash Equivalents 1% invested approach.
- ------------------------------------
100%
- ------------------------------------
- --------------------------------------------------------------------------------
Sector Diversification
- --------------------------------------------------------------------------------
(Excludes 1% Cash Equivalents)
A GRAPH IN THE FORM OF A PIE CHART APPEARS HERE, ILLUSTRATING THE EXACT DATA
POINTS IN THE TABLE BELOW.
Technology 19% The fund's investment
Financial 16% approach typically
Consumer Staples 10% results in sector
Manufacturing 9% weightings that are
Health 9% essentially similar to
Communications 9% the sector weightings of
Energy 8% the S&P 500 Index.
Consumer Discretionary 7%
Durables 5%
Other 8%
- ------------------------------------
100%
- ------------------------------------
12
<PAGE>
- --------------------------------------------------------------------------------
Ten Largest Equity Holdings
- --------------------------------------------------------------------------------
(26% of Portfolio) The fund's top holdings
are the result of
1. Microsoft Corp. excluding the 20% of
Developer of computer software assets with the lowest
expected return while
2. General Electric Co. replicating the
Producer of electrical equipment fundamental
characteristics of the
3. Johnson & Johnson S&P 500 Index by
Healthcare products selecting stocks from
among the remaining 80%.
4. Intel Corp.
Producer of semiconductor memory circuits
5. Bristol-Myers Squibb Co.
Diversified pharmaceutical and consumer products
company
6. International Business Machines Corp.
Manufacturer of computers and servicer of information
processing units
7. Procter & Gamble Co.
Diversified manufacturer of consumer products
8. AT&T Corp.
Telecommunication services
9. Exxon Corp.
International oil and gas company
10. Wal-Mart Stores Inc.
Operator of discount stores
For more complete details about the Fund's investment portfolio, see page 16. A
quarterly Fund Summary and Portfolio Holdings are available upon request.
13
<PAGE>
Portfolio Summary
- --------------------------------------------------------------------------------
August 31, 1999
Scudder Select 1000 Growth Fund
- --------------------------------------------------------------------------------
Asset Allocation
- --------------------------------------------------------------------------------
A GRAPH IN THE FORM OF A PIE CHART APPEARS HERE, ILLUSTRATING THE EXACT DATA
POINTS IN THE TABLE BELOW.
Common Stocks 98% The fund pursues a
Cash Equivalents 2% fully invested
- ------------------------------------ approach.
100%
- ------------------------------------
- --------------------------------------------------------------------------------
Sector Diversification
- --------------------------------------------------------------------------------
(Excludes 2% Cash Equivalents)
A GRAPH IN THE FORM OF A PIE CHART APPEARS HERE, ILLUSTRATING THE EXACT DATA
POINTS IN THE TABLE BELOW.
Technology 28% The fund's investment
Health 19% approach typically
Consumer Staples 10% results in sector
Manufacturing 10% weightings that are
Consumer Discretionary 8% essentially similar to
Durables 6% the sector weightings of
Service Industries 5% the Russell 1000 Growth
Financial 5% Index.
Communications 4%
Other 5%
- ------------------------------------
100%
- ------------------------------------
14
<PAGE>
- --------------------------------------------------------------------------------
Ten Largest Equity Holdings
- --------------------------------------------------------------------------------
(36% of Portfolio) The fund's top holdings
are the result of
excluding the 20% of
assets with the lowest
expected return while
replicating the
fundamental
characteristics of the
Russell 1000 Growth
Index by selecting
stocks from among the
remaining 80%.
1. Microsoft Corp.
Developer of computer software
2. General Electric Co.
Producer of electrical equipment
3. Intel Corp.
Producer of semiconductor memory circuits
4. Bristol-Myers Squibb Co.
Pharmaceutical and consumer products company
5. Lucent Technologies Inc.
Developer of communication systems and software
6. Procter & Gamble Co.
Manufacturer of consumer products
7. Merck & Co., Inc.
Drug manufacturer
8. Johnson & Johnson
Manufacturer of healthcare products
9. Wal-Mart Stores, Inc.
Operator of discount stores
10. Cisco Systems, Inc.
Manufacturer of computer network products
For more complete details about the Fund's investment portfolio, see page 25. A
quarterly Fund Summary and Portfolio Holdings are available upon request.
15
<PAGE>
Investment Portfolio as of August 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Principal Market
Amount ($) Value ($)
- --------------------------------------------------------------------------------
Scudder Select 500 Fund
- --------------------------------------------------------------------------------
Repurchase Agreements 0.9%
- --------------------------------------------------------------------------------
Repurchase Agreement with State Street Bank and Trust
Company, dated 8/31/1999 at 5.41%, to be repurchased
at $318,048 on 9/1/1999, collateralized by a
$325,000 U.S. Treasury Note, 3.625%, 1/15/2008
(Cost $318,000) ........................... 318,000 318,000
- --------------------------------------------------------------------------------
Common Stocks 99.1%
- --------------------------------------------------------------------------------
Shares
- --------------------------------------------------------------------------------
Consumer Discretionary 6.5%
Apparel & Shoes 0.4%
Liz Claiborne Inc. ............................ 1,300 47,775
Nike, Inc. "B" ................................ 2,200 101,750
Too Inc.* ..................................... 142 2,494
----------
152,019
----------
Department & Chain Stores 4.9%
Costco Wholesale Corp.* ....................... 900 67,275
Dayton Hudson Corp. ........................... 2,000 116,000
Federated Department Stores, Inc.* ............ 1,000 46,000
Gap Inc. ...................................... 2,850 111,506
Home Depot, Inc. .............................. 5,800 354,525
Kmart Corp.* .................................. 3,200 40,200
Kohl's Corp.* ................................. 800 57,000
Lowe's Companies, Inc. ........................ 2,000 90,500
Sears, Roebuck & Co. .......................... 1,500 56,250
The Limited, Inc. ............................. 1,000 37,875
Wal-Mart Stores Inc. .......................... 15,600 691,275
----------
1,668,406
----------
Hotels & Casinos 0.5%
Carnival Corp. "A" ............................ 2,800 125,125
Marriott International, Inc. "A" .............. 1,800 61,650
----------
186,775
----------
Recreational Products 0.2%
Brunswick Corp. ............................... 2,100 53,681
----------
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
- --------------------------------------------------------------------------------
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Specialty Retail 0.3%
Circuit City Stores Inc. ........................ 800 34,400
Office Depot Inc.* .............................. 2,600 27,138
Tandy Corp. ..................................... 700 33,075
----------
94,613
----------
Miscellaneous 0.2%
Fortune Brands, Inc. ............................ 1,900 71,250
----------
Consumer Staples 10.3%
Alcohol & Tobacco 2.2%
Anheuser-Busch Companies, Inc. .................. 2,500 192,500
Brown-Forman Corp. "B" .......................... 1,600 94,000
Philip Morris Companies, Inc. ................... 8,800 329,450
Seagram Co., Ltd. ............................... 2,500 132,656
----------
748,606
----------
Consumer Electronic & Photographic 0.5%
Eastman Kodak Co. ............................... 2,300 168,906
----------
Consumer Specialties 0.1%
American Greeting Corp., "A" .................... 1,700 47,069
----------
Farming 0.3%
Pioneer Hi-Bred International, Inc. ............. 2,400 93,900
----------
Food & Beverage 3.3%
Albertson's Inc. ................................ 2,245 107,620
General Mills, Inc. ............................. 1,100 92,125
Kroger Co.* ..................................... 5,300 122,563
Nabisco Group Holdings .......................... 2,700 47,925
Quaker Oats Co. ................................. 2,800 187,075
Ralston Purina Group ............................ 7,300 200,750
Safeway Inc.* ................................... 3,200 149,000
William Wrigley Jr. Co. ......................... 1,400 109,638
Winn-Dixie Stores, Inc. ......................... 3,300 112,200
----------
1,128,896
----------
Package Goods/Cosmetics 3.9%
Avon Products, Inc. ............................. 2,100 92,138
Clorox Co. ...................................... 2,200 99,550
Unilever NV (New York Shares) ................... 3,500 241,063
Kimberly-Clark Corp. ............................ 2,900 165,119
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Procter & Gamble Co. .......................... 7,400 734,450
----------
1,332,320
----------
Health 9.2%
Biotechnology 0.9%
Amgen Inc.* ................................... 3,600 299,475
----------
Health Industry Services 0.5%
United Healthcare Corp. ....................... 2,100 127,706
Wellpoint Health Networks Inc.* ............... 800 58,300
----------
186,006
----------
Hospital Management 0.2%
Columbia/HCA Healthcare Corp. ................. 3,100 76,338
----------
Medical Supply & Specialty 1.1%
Baxter International Inc. ..................... 3,400 228,013
Biomet Inc. ................................... 900 32,175
Boston Scientific Corp.* ...................... 3,100 105,206
----------
365,394
----------
Pharmaceuticals 6.5%
Allergan, Inc. ................................ 400 39,950
Bristol-Myers Squibb Co. ...................... 11,900 837,463
Johnson & Johnson ............................. 9,800 1,002,050
Pharmacia & Upjohn, Inc. ...................... 4,300 224,675
Watson Pharmaceuticals, Inc.* ................. 3,300 118,388
----------
2,222,526
----------
Communications 8.8%
Cellular Telephone 0.5%
Nextel Communications, Inc. "A"* .............. 1,400 80,938
Vodafone Group PLC (ADR) ...................... 550 110,309
----------
191,247
----------
Telephone/Communications 8.3%
AT&T Corp. .................................... 15,700 706,500
Ameritech Corp. ............................... 3,100 195,688
Bell Atlantic Corp. ........................... 7,400 453,250
BellSouth Corp. ............................... 8,100 366,525
GTE Corp. ..................................... 3,600 247,050
Nortel Networks Corp. ......................... 6,000 246,375
SBC Communicatons, Inc. ....................... 8,600 412,800
Sprint Corp. .................................. 2,300 102,063
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
- --------------------------------------------------------------------------------
Market
Shares Value ($)
- --------------------------------------------------------------------------------
US West, Inc. ................................... 2,100 109,725
----------
2,839,976
----------
Financial 15.5%
Banks 6.4%
BankBoston Corp. ................................ 1,700 78,944
Chase Manhattan Corp. ........................... 4,800 401,700
Firstar Corp. ................................... 7,700 206,456
Golden West Financial Corp. ..................... 1,800 163,463
Huntington Bancshares Inc. ...................... 3,370 100,889
J.P. Morgan & Co., Inc. ......................... 1,900 245,456
Mellon Bank Corp. ............................... 5,300 176,888
PNC Bank Corp. .................................. 6,700 350,494
Regions Financial Corp. ......................... 4,300 151,844
Republic New York Corp. ......................... 1,600 111,000
SouthTrust Corp. ................................ 3,200 113,000
State Street Corp. .............................. 1,500 89,813
----------
2,189,947
----------
Insurance 4.2%
Aegon NV (ADR) .................................. 502 43,580
Aetna Inc. ...................................... 1,000 77,750
American International Group, Inc. .............. 5,125 475,023
Aon Corp. ....................................... 2,000 66,750
Chubb Corp. ..................................... 1,900 108,656
Cigna Corp. ..................................... 1,000 89,813
Conseco, Inc. ................................... 5,900 141,600
Hartford Financial Services Group Inc. .......... 1,800 81,788
Lincoln National Corp. .......................... 2,200 103,125
Loews Corp. ..................................... 800 62,800
MGIC Investment Corp. ........................... 1,300 56,469
Marsh & McLennan Companies, Inc. ................ 1,700 123,781
----------
1,431,135
----------
Consumer Finance 1.8%
Citigroup Inc. .................................. 13,650 606,572
----------
Other Financial Companies 3.1%
Bear Stearns Companies, Inc. .................... 2,300 95,738
Federal Home Loan Mortgage Corp. ................ 4,500 231,750
Federal National Mortgage Association ........... 7,100 441,088
Lehman Brothers Holdings, Inc. .................. 1,500 80,625
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
- --------------------------------------------------------------------------------
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Morgan Stanley, Dean Witter & Co. ............. 2,600 223,113
----------
1,072,314
----------
Media 2.6%
Advertising 0.1%
Omnicom Group, Inc. ........................... 500 37,688
----------
Broadcasting & Entertainment 0.6%
Time Warner Inc. .............................. 3,700 219,456
----------
Cable Television 1.2%
Comcast Corp. "A" ............................. 3,200 104,400
Media One Group, Inc.* ........................ 4,600 302,450
----------
406,850
----------
Print Media 0.7%
Gannett Co., Inc. ............................. 1,500 101,906
Times Mirror Co. "A" .......................... 2,200 127,050
----------
228,956
----------
Service Industries 2.1%
EDP Services 0.9%
Automatic Data Processing, Inc. ............... 2,600 102,213
Electronic Data Systems Corp. ................. 2,000 112,250
First Data Corp.* ............................. 2,100 92,400
----------
306,863
----------
Investment 0.3%
Charles Schwab Corp. .......................... 2,200 86,900
----------
Miscellaneous Consumer Services 0.9%
America Online Inc.* .......................... 3,400 310,463
----------
Durables 5.1%
Aerospace 1.8%
AlliedSignal Inc. ............................. 2,100 128,625
Boeing Co. .................................... 4,700 212,969
Northrop Grumman Corp. ........................ 900 65,250
Rockwell International Corp. .................. 1,600 94,600
United Technologies Corp. ..................... 1,700 112,413
----------
613,857
----------
Automobiles 1.1%
Ford Motor Co. ................................ 3,800 198,075
General Motors Corp. .......................... 2,700 178,538
----------
376,613
----------
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
- --------------------------------------------------------------------------------
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Construction/Agricultural Equipment 0.2%
Caterpillar Inc. ................................ 1,500 84,938
----------
Telecommunications Equipment 2.0%
General Instrument Corp.* ....................... 600 29,513
Lucent Technologies Inc. ........................ 8,600 550,938
Tellabs, Inc.* .................................. 2,000 119,125
----------
699,576
----------
Manufacturing 9.1%
Chemicals 1.3%
Dow Chemical Co. ................................ 800 90,900
E.I. du Pont de Nemours & Co. ................... 3,000 190,125
Praxair, Inc. ................................... 1,000 47,000
Sigma-Aldrich Corp. ............................. 1,500 48,375
W.R. Grace & Co.* ............................... 4,200 80,325
----------
456,725
----------
Containers & Paper 0.6%
Champion International Corp. .................... 1,100 60,500
International Paper Co. ......................... 1,800 84,713
Sealed Air Corp.* ............................... 1,100 64,625
----------
209,838
----------
Diversified Manufacturing 5.8%
Cooper Industries, Inc. ......................... 1,000 51,875
General Electric Co. ............................ 10,900 1,224,206
Honeywell, Inc. ................................. 700 79,450
Minnesota Mining & Manufacturing Co. ............ 3,000 283,500
Tenneco, Inc. ................................... 2,200 44,275
Textron, Inc. ................................... 1,000 80,750
Tyco International Ltd. ......................... 2,400 243,150
----------
2,007,206
----------
Electrical Products 0.4%
Emerson Electric Co. ............................ 2,300 144,038
----------
Industrial Specialty 0.7%
Corning Inc. .................................... 1,000 66,500
PPG Industries, Inc. ............................ 1,600 96,100
Sherwin-Williams Co. ............................ 2,700 65,813
----------
228,413
----------
Machinery/Components/Controls 0.3%
Pitney Bowes, Inc. .............................. 1,900 112,100
----------
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
- --------------------------------------------------------------------------------
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Technology 19.1%
Computer Software 6.0%
BMC Software Inc.* .............................. 2,600 139,913
Computer Associates International, Inc. ......... 2,100 118,650
Compuware Corp.* ................................ 2,600 78,488
Microsoft Corp.* ................................ 16,800 1,555,033
Oracle Systems Corp.* ........................... 5,100 186,150
----------
2,078,234
----------
Diverse Electronic Products 1.0%
Applied Materials, Inc.* ........................ 1,700 120,806
Motorola Inc. ................................... 2,500 230,625
----------
351,431
----------
EDP Peripherals 0.7%
EMC Corp.* ...................................... 4,100 246,000
----------
Electronic Components/Distributors 2.2%
Cisco Systems, Inc.* ............................ 9,200 623,875
Gateway Inc.* ................................... 1,200 116,325
----------
740,200
----------
Electronic Data Processing 5.4%
Apple Computer, Inc.* ........................... 2,100 137,025
Hewlett-Packard Co. ............................. 4,200 442,575
International Business Machines Corp. ........... 6,400 797,200
Sun Microsystems, Inc.* ......................... 2,400 190,800
Unisys Corp.* ................................... 6,300 270,900
----------
1,838,500
----------
Military Electronics 0.3%
Raytheon Co. "B" ................................ 1,400 95,375
----------
Semiconductors 3.5%
Intel Corp. ..................................... 10,200 838,313
KLA-Tencor Corp.* ............................... 1,200 75,375
LSI Logic Corp.* ................................ 1,300 73,775
Texas Instruments Inc. .......................... 2,600 213,363
----------
1,200,826
----------
Energy 7.6%
Engineering 0.2%
Fluor Corp. ..................................... 1,600 66,200
----------
Oil & Gas Production 2.5%
Apache Corp. .................................... 1,400 63,700
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
- --------------------------------------------------------------------------------
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Burlington Resources, Inc. ........................ 1,600 66,900
Kerr-McGee Corp. .................................. 1,000 56,000
Royal Dutch Petroleum Co. (New York shares) ....... 9,900 612,563
Union Pacific Resources Group ..................... 3,200 57,400
----------
856,563
----------
Oil Companies 4.3%
Atlantic Richfield Co. ............................ 1,100 96,731
Chevron Corp. ..................................... 2,700 249,075
Exxon Corp. ....................................... 8,900 701,988
Mobil Corp. ....................................... 2,200 225,225
Texaco Inc. ....................................... 2,200 139,700
USX Marathon Group ................................ 1,600 49,800
----------
1,462,519
----------
Oil/Gas Transmission 0.3%
Enron Corp. ....................................... 2,600 108,875
----------
Oilfield Services/Equipment 0.3%
Baker Hughes, Inc. ................................ 2,900 98,600
----------
Metals & Minerals 0.6%
Precious Metals 0.3%
Barrick Gold Corp.* ............................... 4,700 91,063
----------
Steel & Metals 0.3%
Alcoa Inc. ........................................ 1,400 90,388
----------
Construction 0.3%
Building Products 0.1%
Georgia Pacific Group ............................. 1,200 49,650
----------
Forest Products 0.2%
Weyerhaeuser Co. .................................. 1,400 78,750
----------
Transportation 0.8%
Air Freight 0.1%
FDX Corp.* ........................................ 1,000 42,438
----------
Airlines 0.4%
Delta Air Lines, Inc. ............................. 2,900 147,356
----------
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Railroads 0.3%
Union Pacific Corp. ............................... 1,800 87,638
----------
Utilities 1.5%
Electric Utilities
Duke Energy Corp. ................................. 5,000 287,500
FPL Group, Inc. ................................... 2,800 151,200
Southern Company .................................. 2,900 78,481
----------
517,181
----------
Total Common Stocks (Cost $33,858,918) 34,005,638
Total Investment Portfolio -- 100.0% (Cost $34,176,918) (a) 34,323,638
(a) The cost for federal income tax purposes was $34,176,918. At August 31,
1999, net unrealized appreciation based on tax cost was $146,720. This
consisted of aggregate gross unrealized appreciation for all securities
in which there was an excess of market value over tax cost of
$1,761,717 and gross unrealized depreciation for all investment
securities in which there was an excess of tax cost over market value
of $1,614,997.
* Non-income producing security
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
Investment Portfolio as of August 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Principal Market
Amount ($) Value ($)
- --------------------------------------------------------------------------------
Scudder Select 1000 Growth Fund
- --------------------------------------------------------------------------------
Repurchase Agreements 1.6%
- --------------------------------------------------------------------------------
Repurchase Agreement with State Street Bank and Trust
Company, dated 8/31/1999 at 5.41%, to be repurchased
at $345,052 on 9/1/1999, collateralized by a
$355,000 U.S. Treasury Note, 3.625%, 1/15/2008
(Cost $345,000) .................................... 345,000 345,000
- --------------------------------------------------------------------------------
Common Stocks 98.4%
- --------------------------------------------------------------------------------
Shares
- --------------------------------------------------------------------------------
Consumer Discretionary 7.6%
Apparel & Shoes 0.4%
Abercrombie & Fitch Co. "A"* .......................... 600 20,925
Jones Apparel Group, Inc.* ............................ 1,000 25,938
Nike, Inc. "B" ........................................ 700 32,375
----------
79,238
----------
Department & Chain Stores 6.0%
Bed Bath & Beyond Inc.* ............................... 700 19,250
CVS Corp. ............................................. 1,500 62,531
Costco Wholesale Corp.* ............................... 1,200 89,700
Dayton Hudson Corp. ................................... 1,500 87,000
Gap Inc. .............................................. 2,200 86,075
Home Depot, Inc. ...................................... 5,600 342,300
Kohl's Corp.* ......................................... 600 42,750
Lowe's Companies, Inc. ................................ 1,300 58,825
TJX Companies, Inc. ................................... 900 25,988
Wal-Mart Stores Inc. .................................. 10,300 456,419
----------
1,270,838
----------
Hotels & Casinos 0.3%
Host Marriot Corp. .................................... 2,300 21,275
Marriott International, Inc. "A"....................... 1,100 37,675
----------
58,950
----------
Recreational Products 0.3%
Harley-Davidson Inc. .................................. 700 38,150
Mattel Inc. ........................................... 1,800 38,363
----------
76,513
----------
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
- --------------------------------------------------------------------------------
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Restaurants 0.1%
Outback Steakhouse Inc.* .............................. 800 23,700
----------
Specialty Retail 0.5%
Circuit City Stores Inc. .............................. 800 34,400
Staples Inc.* ......................................... 1,700 36,975
Tandy Corp. ........................................... 600 28,350
----------
99,725
----------
Consumer Staples 10.1%
Alcohol & Tobacco 1.8%
Anheuser-Busch Companies, Inc. ........................ 1,100 84,700
Brown-Forman Corp. "B" ................................ 600 35,250
Philip Morris Companies, Inc. ......................... 7,200 269,550
----------
389,500
----------
Food & Beverage 3.3%
Albertson's Inc. ...................................... 1,200 57,525
Bestfoods ............................................. 1,900 93,338
ConAgra, Inc. ......................................... 1,400 34,300
Kroger Co.* ........................................... 2,200 50,875
PepsiCo Inc. .......................................... 5,600 191,100
Ralston Purina Group .................................. 4,300 118,250
Safeway Inc.* ......................................... 3,400 158,313
----------
703,701
----------
Package Goods/Cosmetics 5.0%
Avon Products, Inc. ................................... 1,300 57,038
Clorox Co. ............................................ 1,600 72,400
Colgate-Palmolive Co. ................................. 1,100 58,850
Estee Lauder Companies "A" ............................ 1,000 45,938
Kimberly-Clark Corp. .................................. 1,600 91,100
Nu Skin Asia Pacific Inc.* ............................ 3,000 32,063
Procter & Gamble Co. .................................. 7,100 704,675
----------
1,062,064
----------
Health 18.3%
Biotechnology 2.9%
Amgen Inc.* ........................................... 3,200 266,200
Biogen Inc.* .......................................... 1,200 92,100
Chiron Corp.* ......................................... 1,500 48,188
Genzyme Corporation (General Division)................. 1,200 67,725
Genzyne Surgical Products* ............................ 214 1,391
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
- --------------------------------------------------------------------------------
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Immunex Corp.* ........................................ 600 40,388
MedImmune, Inc.* ...................................... 1,000 103,188
----------
619,180
----------
Health Industry Services 0.9%
IMS Health Inc. ....................................... 1,100 30,388
Pacificare Health Systems, Inc.*....................... 1,000 60,000
United Healthcare Corp. ............................... 1,200 72,975
Wellpoint Health Networks Inc.* ....................... 500 36,438
----------
199,801
----------
Medical Supply & Specialty 1.9%
Baxter International Inc. ............................. 2,200 147,538
Biomet Inc. ........................................... 900 32,175
Boston Scientific Corp.* .............................. 1,700 57,694
DENTSPLY International Inc. ........................... 1,100 27,294
Hillenbrand Industries, Inc. .......................... 1,300 37,050
Lincare Holdings Inc.* ................................ 1,400 36,925
St. Jude Medical, Inc.* ............................... 800 29,000
VISX Inc.* ............................................ 300 27,150
----------
394,826
----------
Pharmaceuticals 12.6%
Abbott Laboratories ................................... 8,600 373,025
Andrx Corp.* .......................................... 600 43,125
Bristol-Myers Squibb Co. .............................. 11,600 816,350
Eli Lilly & Co. ....................................... 3,600 268,650
IVAX Corp.* ........................................... 2,500 41,250
Johnson & Johnson ..................................... 5,400 552,150
Merck & Co., Inc. ..................................... 8,800 591,250
----------
2,685,800
----------
Communications 4.3%
Cellular Telephone 1.0%
Nextel Communications, Inc. "A"*....................... 700 40,469
Vodafone Group PLC (ADR) .............................. 850 170,478
----------
210,947
----------
Telephone/Communications 3.3%
ADC Telecommunications, Inc. .......................... 1,300 48,181
AT&T Corp. ............................................ 1,100 49,500
Bell Atlantic Corp. ................................... 600 36,750
GTE Corp. ............................................. 800 54,900
JDS Uniphase Corp.* ................................... 400 42,425
MCI WorldCom, Inc.* ................................... 4,600 348,450
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
- --------------------------------------------------------------------------------
Market
Shares Value ($)
- --------------------------------------------------------------------------------
NEXTLINK Communications, Inc. "A"* ........................ 600 30,225
Qwest Communications International Inc.*................... 100 2,875
SBC Communicatons, Inc. ................................... 1,900 91,200
----------
704,506
----------
Financial 4.6%
Banks 1.2%
BANK ONE CORP ............................................. 700 28,088
MBNA Corp. ................................................ 2,200 54,313
Northern Trust Corp. ...................................... 400 33,925
State Street Corp. ........................................ 600 35,925
Washington Mutual, Inc. ................................... 1,500 47,625
Wells Fargo Co. ........................................... 1,300 51,756
----------
251,632
----------
Insurance 0.8%
American International Group, Inc. ........................ 1,500 139,031
Providian Financial Corp. ................................. 300 23,288
----------
162,319
----------
Consumer Finance 1.7%
American Express Credit Corp. ............................. 1,400 192,500
Citigroup Inc. ............................................ 3,150 139,978
Household International, Inc. ............................. 800 30,200
----------
362,678
----------
Other Financial Companies 0.9%
Federal Home Loan Mortgage Corp. .......................... 1,900 97,850
Federal National Mortgage Association ..................... 1,700 105,613
----------
203,463
----------
Media 3.2%
Advertising 0.5%
Interpublic Group of Companies Inc. ....................... 1,400 55,475
Omnicom Group, Inc. ....................................... 700 52,763
----------
108,238
----------
Broadcasting & Entertainment 1.4%
CBS Corp.* ................................................ 1,500 70,500
Hispanic Broadcasting Corp.* .............................. 600 44,850
Time Warner Inc. .......................................... 3,200 189,800
----------
305,150
----------
Cable Television 1.0%
Comcast Corp. "A" ......................................... 2,200 71,775
Media One Group, Inc.* .................................... 2,300 151,225
----------
223,000
----------
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
- --------------------------------------------------------------------------------
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Print Media 0.3%
Gannett Co., Inc. ...................................... 800 54,350
----------
Service Industries 5.2%
EDP Services 0.8%
Automatic Data Processing, Inc. ........................ 1,600 62,900
Electronic Data Systems Corp. .......................... 700 39,288
First Data Corp. ....................................... 1,600 70,400
Safeguard Scientifics, Inc.* ........................... 100 6,725
----------
179,313
----------
Environmental Services 0.1%
Waste Management, Inc. ................................. 1,200 26,175
----------
Investment 0.9%
Charles Schwab Corp. ................................... 2,100 82,950
Franklin Resources, Inc. ............................... 1,400 50,313
T. Rowe Price & Associates, Inc. ....................... 1,900 58,781
----------
192,044
----------
Miscellaneous Commercial Services 0.4%
Cintas Corp. ........................................... 600 30,825
Convergys Corp.* ....................................... 1,500 30,938
Gartner Group, Inc. "B"* ............................... 143 2,932
Sysco Corp. ............................................ 900 29,363
----------
94,058
----------
Miscellaneous Consumer Services 2.9%
Amazon.com, Inc.* ...................................... 700 87,063
America Online Inc.* ................................... 4,500 410,906
Cendant Corp.* ......................................... 1,900 34,081
Service Corp. International ............................ 1,700 23,481
Yahoo! Inc.* ........................................... 500 73,750
----------
629,281
----------
Miscellaneous 0.1%
Metris Companies Inc. .................................. 800 22,050
----------
Durables 5.5%
Aerospace 1.4%
AlliedSignal Inc. ...................................... 800 49,000
Boeing Co. ............................................. 3,100 140,469
United Technologies Corp. .............................. 1,523 100,708
----------
290,177
----------
The accompanying notes are an integral part of the financial statements.
29
<PAGE>
- --------------------------------------------------------------------------------
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Automobiles 0.1%
Lear Corp.* .......................................... 800 32,150
----------
Leasing Companies 0.1%
IKON Office Solutions, Inc. .......................... 2,100 23,363
----------
Telecommunications Equipment 3.9%
Lucent Technologies Inc. ............................. 11,300 723,906
Tellabs, Inc.* ....................................... 1,600 95,300
----------
819,206
----------
Manufacturing 10.2%
Chemicals 0.3%
B.F. Goodrich Co., Inc. .............................. 1,900 70,181
----------
Containers & Paper 0.5%
Avery Dennison Corp. ................................. 700 38,413
Fort James Corp. ..................................... 1,700 54,825
----------
93,238
----------
Diversified Manufacturing 6.1%
General Electric Co. ................................. 10,800 1,212,975
Minnesota Mining & Manufacturing Co. ................. 600 56,700
Tyco International Ltd. .............................. 370 37,486
----------
1,307,161
----------
Hand Tools 0.2%
Black & Decker Corp. ................................. 700 36,838
----------
Industrial Specialty 0.8%
Corning Inc. ......................................... 800 53,200
QUALCOMM Inc. ........................................ 600 115,313
----------
168,513
----------
Machinery/Components/Controls 0.9%
Illinois Tool Works Inc. ............................. 800 62,350
Pitney Bowes, Inc. ................................... 2,100 123,900
----------
186,250
----------
Office Equipment/Supplies 1.4%
Herman Miller, Inc. .................................. 1,200 28,275
Lexmark International Group Inc. "A"* ................ 200 15,750
Xerox Corp. .......................................... 5,200 248,300
----------
292,325
----------
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
- --------------------------------------------------------------------------------
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Technology 27.6%
Computer Software 10.5%
Adobe Systems Inc. .................................. 700 69,738
Citrix Systems, Inc.* ............................... 1,900 108,300
Computer Associates International, Inc. ............. 2,400 135,600
Compuware Corp.* .................................... 4,300 129,806
Comverse Technologies Inc.* ......................... 400 31,200
Intuit Inc.* ........................................ 300 26,869
J.D. Edwards & Co.* ................................. 2,900 53,288
Legato Systems, Inc.* ............................... 1,400 60,288
Microsoft Corp.* .................................... 14,000 1,295,859
Oracle Systems Corp.* ............................... 5,000 182,500
Rational Software Corp.* ............................ 800 21,650
Siebel Systems, Inc.* ............................... 900 61,819
Synopsys Inc.* ...................................... 900 50,344
----------
2,227,261
----------
Diverse Electronic Products 1.5%
Applied Materials, Inc.* ............................ 2,200 156,338
Motorola Inc. ....................................... 1,000 92,250
Solectron Corp.* .................................... 600 46,950
Teradyne Inc.* ...................................... 500 34,031
----------
329,569
----------
EDP Peripherals 1.4%
EMC Corp.* .......................................... 4,800 288,000
----------
Electronic Components/Distributors 2.7%
Adaptec Inc.* ....................................... 1,200 46,800
Analog Devices, Inc.* ............................... 700 36,050
Cisco Systems, Inc.* ................................ 6,400 434,000
Sanmina Corp.* ...................................... 800 60,000
----------
576,850
----------
Electronic Data Processing 4.2%
Hewlett-Packard Co. ................................. 3,500 368,813
International Business Machines Corp. ............... 1,200 149,475
Sun Microsystems, Inc.* ............................. 3,500 278,250
Unisys Corp.* ....................................... 2,200 94,600
----------
891,138
----------
Military Electronics 0.2%
Computer Sciences Corp.* ............................ 700 48,431
----------
The accompanying notes are an integral part of the financial statements.
31
<PAGE>
- --------------------------------------------------------------------------------
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Semiconductors 7.1%
Altera Corp.* .................................... 1,100 46,338
Atmel Corp.* ..................................... 300 11,794
Intel Corp. ...................................... 10,300 846,531
KLA-Tencor Corp.* ................................ 1,200 75,375
LSI Logic Corp.* ................................. 700 39,725
Linear Technology Corp. .......................... 800 50,350
Microchip Technology Inc.* ....................... 1,400 76,650
Texas Instruments Inc. ........................... 3,000 246,188
Xilinx Inc.* ..................................... 1,600 111,900
----------
1,504,851
----------
Energy 0.8%
Oil & Gas Production 0.6%
Anadarko Petroleum Corp. ......................... 1,900 64,600
Kerr-McGee Corp. ................................. 800 44,800
Vastar Resources, Inc. ........................... 100 6,663
----------
116,063
----------
Oil/Gas Transmission 0.1%
Williams Cos., Inc. .............................. 700 28,875
----------
Oilfield Services/Equipment 0.1%
Baker Hughes, Inc. ............................... 900 30,600
----------
Construction 0.4%
Building Materials 0.1%
Southdown, Inc. .................................. 400 20,200
----------
Building Products 0.3%
American Standard Companies, Inc.* ............... 800 32,800
Masco Corp. ...................................... 900 25,481
----------
58,281
----------
Transportation 0.1%
Railroads
Kansas City Southern Industries, Inc. ............ 500 23,156
----------
Utilities 0.5%
Electric Utilities
AES Corp.* ....................................... 1,200 72,825
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
- --------------------------------------------------------------------------------
Market
Shares Value ($)
- --------------------------------------------------------------------------------
Cincinnati Bell, Inc. .............................. 1,200 22,200
----------
95,025
----------
Total Common Stocks (Cost $20,525,231 20,950,742
Total Investment Portfolio -- 100.0% (Cost $20,870,231) (a) 21,295,742
(a) The cost for federal income tax purposes was $20,870,231. At August 31,
1999, net unrealized appreciation based on tax cost was $425,411. This
consisted of aggregate gross unrealized appreciation for all securities
in which there was an excess of market value over tax cost of
$1,520,702 and a gross unrealized depreciation for all investment
securities in which there was an excess of tax cost over market value
of $1,095,191.
* Non-income producing security
The accompanying notes are an integral part of the financial statements.
33
<PAGE>
Financial Statements
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities as of August 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Scudder Scudder
Select 500 Select 1000
Assets Fund Growth Fund
- ----------------------------------------------------------------------------------
<S> <C> <C>
Investments at market (for identified cost, see
accompanying investment portfolios) ........... $ 34,323,638 $ 21,295,742
Cash ............................................. 419 498
Dividends and interest receivable ................ 44,236 33,787
Receivable for Fund shares sold .................. 40,563 23,941
Due from Adviser ................................. -- 5,957
------------ ------------
Total assets ..................................... 34,408,856 21,359,925
Liabilities
- ----------------------------------------------------------------------------------
Payable for Fund shares redeemed ................. 4,971 --
Other accrued expenses ........................... 21,666 2,788
------------ ------------
Total liabilities ................................ 26,637 2,788
Net assets, at market value $ 34,382,219 $ 21,357,137
Net Assets
- ----------------------------------------------------------------------------------
Net assets consist of:
Undistributed net investment income .............. 46,634 65,428
Net unrealized appreciation (depreciation) on
investments.................................... 146,720 425,511
Accumulated net realized gain (loss) ............. (329,828) (88,646)
Paid-in capital .................................. 34,518,693 20,954,844
Net assets, at market value $ 34,382,219 $ 21,357,137
Net Asset Value
- ----------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per $ 11.91 $ 12.30
share (outstanding shares of beneficial
interest, $.01 par value, unlimited number of
shares authorized) ............................ 2,887,317 1,735,713
</TABLE>
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations for the period May 17, 1999 (commencement of
operations) to August 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Scudder Scudder
Select 500 Select 1000
Investment Income Fund Growth Fund
- ------------------------------------------------------------------------------------
<S> <C> <C>
Income:
Dividends (net of foreign taxes withheld of $1,118
and $0, respectively) ........................ $ 146,584 $ 92,320
Interest ........................................ 21,640 13,175
--------------- ---------------
168,224 105,495
Expenses:
Management fee .................................. 63,847 37,396
Services to shareholders ........................ 87,117 60,409
Custodian and accounting fees ................... 33,164 21,266
Trustees' fees and expenses ..................... 4,558 4,558
Reports to shareholders ......................... 3,530 2,345
Auditing ........................................ 5,088 5,088
Legal ........................................... 2,332 2,332
Registration fees ............................... 23,532 21,200
Amortization of organization expenses ........... 15,000 15,000
Other ........................................... 2,544 2,544
--------------- ---------------
Total expenses before reductions ................ 240,712 172,138
Expense reductions .............................. (172,305) (132,071)
--------------- ---------------
Expenses, net ................................... 68,407 40,067
Net investment income 99,817 65,428
Realized and unrealized gain (loss) on
investments
- ------------------------------------------------------------------------------------
Net realized gain (loss) from investments ....... (329,828) (88,646)
--------------- ---------------
Net unrealized appreciation (depreciation) during
the period on investments .................... 146,720 425,511
Net gain (loss) on investment transactions (183,108) 336,865
Net increase (decrease) in net assets resulting $ (83,291) $ 402,293
from operations
</TABLE>
The accompanying notes are an integral part of the financial statements.
35
<PAGE>
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets -- Scudder Select 500 Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Period May
17, 1999
(commencement of
operations) to
August 31, 1999
Increase (Decrease) in Net Assets (Unaudited)
- --------------------------------------------------------------------------------------
<S> <C>
Operations:
Net investment income ........................................... $ 99,817
Net realized gain (loss) from investment transactions ........... (329,828)
Net unrealized appreciation (depreciation) on investment
transactions during the period ............................... 146,720
---------------
Net increase (decrease) in net assets resulting from operations (83,291)
---------------
Distributions to shareholders from net investment income (53,183)
---------------
Fund share transactions:
Proceeds from shares sold ....................................... 38,308,132
Net asset value of shares issued to shareholders in reinvestment
of distributions ............................................. 51,695
Cost of shares redeemed ......................................... (3,842,334)
---------------
Net increase (decrease) in net assets from Fund share transactions 34,517,493
---------------
Increase (decrease) in net assets ............................... 34,381,019
Net assets at beginning of period ............................... 1,200
Net assets at end of period (including undistributed net
investment income of $46,634) ................................ $ 34,382,219
Other Information
- ---------------------------------------------------------------------------------------
Increase (decrease) in Fund shares
Shares outstanding at beginning of period ....................... 100
---------------
Shares sold ..................................................... 3,195,398
Shares issued to shareholders in reinvestment of distributions .. 4,333
Shares redeemed ................................................. (312,514)
---------------
Net increase (decrease) in Fund shares .......................... 2,887,217
Shares outstanding at end of period ............................. 2,887,317
</TABLE>
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets -- Scudder Select 1000 Growth Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Period May
17, 1999
(commencement of
operations) to
August 31, 1999
Increase (Decrease) in Net Assets (Unaudited)
- --------------------------------------------------------------------------------------
<S> <C>
Operations:
Net investment income .......................................... $ 65,428
Net realized gain (loss) from investment transactions .......... (88,646)
Net unrealized appreciation (depreciation) on investment
transactions during the period .............................. 425,511
---------------
Net increase (decrease) in net assets resulting from operations 402,293
---------------
Fund share transactions:
Proceeds from shares sold ...................................... 22,128,916
Cost of shares redeemed ........................................ (1,175,272)
---------------
Net increase (decrease) in net assets from Fund share transactions 20,953,644
---------------
Increase (decrease) in net assets .............................. 21,355,937
Net assets at beginning of period .............................. 1,200
Net assets at end of period (including undistributed net investment
income of $65,428) .......................................... $ 21,357,137
Other Information
- ------------------------------------------------------------------------------------
Increase (decrease) in Fund shares
Shares outstanding at beginning of period ...................... 100
---------------
Shares sold .................................................... 1,832,342
Shares redeemed ................................................ (96,729)
---------------
Net increase (decrease) in Fund shares ......................... 1,735,613
Shares outstanding at end of period ............................ 1,735,713
</TABLE>
The accompanying notes are an integral part of the financial statements.
37
<PAGE>
Financial Highlights
The following table includes selected data for a share outstanding throughout
the period (a) and other performance information derived from the financial
statements.
Scudder Select 500 Fund
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
Year Ended August 31, 1999(b)
- ------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $12.00
---------
Income from investment operations:
Net investment income .04
Net realized and unrealized gain (loss) on investments (.11)
---------
Total from investment operations (.07)
Less distributions:
From net investment income (.02)
From net realized gains on investment transactions --
---------
Total distributions (.02)
Net asset value, end of period $11.91
---------
Total Return (%) (c) (.58)**
Ratios and Supplemental Data
- --------------------------------------------------------------------------------------
Net assets, end of period ($ millions) 34
Ratio of operating expenses, net to average daily net assets (%) .75*
Ratio of operating expenses, before expense reductions, to average daily 2.64*
net assets (%)
Ratio of net investment income to average daily net assets (%) 1.09*
Portfolio turnover rate (%) 42*
</TABLE>
(a) Based on monthly average shares outstanding during the period.
(b) For the period May 17, 1999 (commencement of operations) to August 31,
1999 (Unaudited).
(c) Total return would have been lower had certain expenses not been
reduced.
* Annualized
** Not annualized
The accompanying notes are an integral part of the financial statements.
38
<PAGE>
The following table includes selected data for a share outstanding throughout
the period (a) and other performance information derived from the financial
statements.
Scudder Select 1000 Growth Fund
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
Year Ended August 31, 1999(b)
- ------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $12.00
---------
Income from investment operations:
Net investment income .05
Net realized and unrealized gain (loss) on investments .25
---------
Total from investment operations .30
---------
Net asset value, end of period $12.30
---------
Total Return (%)(c) 2.50**
Ratios and Supplemental Data
- --------------------------------------------------------------------------------------
Net assets, end of period ($ millions) 21
Ratio of operating expenses, net to average daily net assets (%) .75*
Ratio of operating expenses before expense reductions, to average daily
net assets (%) 3.22*
Ratio of net investment income to average daily net assets (%) 1.22*
Portfolio turnover rate (%) 37*
</TABLE>
(a) Based on monthly average shares outstanding during the period.
(b) For the period May 17, 1999 (commencement of operations) to August 31,
1999 (Unaudited).
(c) Total return would have been lower had certain expenses not been
reduced.
* Annualized
** Not annualized
39
<PAGE>
Notes to Financial Statements
- --------------------------------------------------------------------------------
August 31, 1999 (Unaudited)
A. Significant Accounting Policies
Scudder Select 500 Fund and Scudder Select 1000 Growth Fund (the "Funds") are a
diversified series of Value Equity Trust (the "Trust") which is registered under
the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company organized as a Massachusetts business trust.
The Funds financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management estimates.
The policies described below are followed by the Funds in the preparation of
their financial statements.
Security Valuation. Investments are stated at value determined as of the close
of regular trading on the New York Stock Exchange. 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. If there are no such sales, the value is
the most recent bid quotation. Securities which are not quoted on Nasdaq but are
traded in another over-the-counter market are valued at the most recent sale
price, or if no sale occurred, at the calculated mean between the most recent
bid and asked quotations on such market. If there are no such bid and asked
quotations, the most recent bid quotation shall be used. All other securities
are valued at their fair value as determined in good faith by the Valuation
Committee of the Board of Trustees.
Repurchase Agreements. The Funds may enter into repurchase agreements with
certain banks and broker/dealers whereby each Fund, through its custodian or
sub-custodian bank, 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 is equal to at least the
principal amount of the repurchase price plus accrued interest.
Federal Income Taxes. Each 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, both Funds paid no federal income taxes and no
federal income tax provision was required.
40
<PAGE>
Distribution of Income and Gains. Distributions of net investment income, if
any, are made annually for the Scudder Select 1000 Growth Fund and quarterly for
the Scudder Select 500 Fund. Net realized gains from investment transactions, in
excess of available capital loss carryforwards, would be taxable to each Fund if
not distributed, and, therefore, will be distributed to shareholders at least
annually.
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. 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, each Fund may periodically make reclassifications among
certain of its capital accounts without impacting the net asset value of the
Fund.
Investment Transactions and Investment Income. Investment transactions are
accounted for on the trade date. Interest income is recorded on the accrual
basis. Dividend income is recorded on the ex-dividend date. Certain dividends
from foreign securities may be recorded subsequent to the ex-dividend date as
soon as each Fund is informed of such dividends. Realized gains and losses from
investment transactions are recorded on an identified cost basis.
Expenses. Expenses arising in connection with a specific Fund are allocated to
that Fund. Other Trust expenses are allocated between the Funds in proportion to
their relative net assets.
B. Related Parties
Under the Management Agreement (the "Agreement") with Scudder Kemper
Investments, Inc. ("Scudder Kemper" or the "Adviser") the Adviser directs the
investments of the Funds in accordance with their 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 Funds. In addition to portfolio management services, the Adviser
provides certain administrative services in accordance with the Agreement. The
management fee payable under the Agreement is equal to an annual rate of 0.70%
for Scudder Select 500 Fund and 0.70% for Scudder Select 1000 Growth Fund, of
each Fund's average daily net assets computed and accrued daily and payable
monthly. The Adviser and certain of its subsidiaries agreed to reimburse or not
impose, respectively, all or a portion of their fees payable by the Funds until
May 31, 2000 in order to maintain the annualized expenses
41
<PAGE>
of each Fund at not more than 0.75% of average daily net assets. For the period
ended August 31, 1999, the Adviser did not impose any of its management fee for
Scudder Select 500 Fund and Scudder Select 1000 Growth Fund, amounting to
$63,847 and $37,396, respectively. Further, the Scudder Select 1000 Growth
reimbursement due from the Adviser at August 31, 1999 amounted to $5,957.
Scudder Service Corporation ("SSC"), a subsidiary of the Adviser, is the
transfer, dividend paying and shareholder service agent for each Fund. For the
period ended August 31, 1999, SSC imposed fees for Scudder Select 500 Fund and
Scudder Select 1000 Growth Fund amounting to $5,954 and $0, respectively, of
which all is unpaid. Further, SSC did not impose fees for Scudder Select 500
Fund and Scudder Select 1000 Growth Fund amounting to $78,160 and $59,669,
respectively.
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 each Fund. For the period ended
August 31, 1999, SFAC imposed fees for Scudder Select 500 Fund and Scudder
Select 1000 Growth Fund amounting to $1,134 and $0, respectively, of which all
is unpaid. Further, SFAC did not impose fees for Scudder Select 500 Fund and
Scudder Select 1000 Growth Fund amounting to $15,298 and $14,049, respectively.
The Funds pay each Trustee not affiliated with the Adviser an annual retainer
plus specified amounts for attended board and committee meetings. For the period
ended August 31, 1999, Trustees' fees and expenses for Scudder Select 500 Fund
and Scudder Select 1000 Growth Fund both aggregated $4,558.
C. Lines of Credit
The Funds and several other Scudder Funds (the "Participants") share in a $850
million revolving credit facility for temporary or emergency purposes, including
the meeting of redemption requests that otherwise might require the untimely
disposition of securities. The Participants are charged an annual commitment fee
which is allocated pro rata among each of the Participants. Interest is
calculated based on the market rates at the time of borrowing. The Funds may
borrow up to a maximum of 33 percent of their net assets under the agreement.
42
<PAGE>
Officers and Trustees
- --------------------------------------------------------------------------------
Lynn S. Birdsong* Wilson Nolen
o President and Trustee o Honorary Trustee; Consultant
Paul Bancroft III Robert G. Stone, Jr.
o Trustee; Venture Capitalist and o Honorary Trustee; Chairman
Consultant Emeritus and Director, Kirby
Corporation
Sheryle J. Bolton
o Trustee; Chief Executive Officer, Donald E. Hall*
Scientific Learning Corporation o Vice President
William T. Burgin Ann M. McCreary*
o Trustee; General Partner, Bessemer o Vice President
Venture Partners
Kathleen T. Millard*
Keith R. Fox o Vice President
o Trustee; Private Equity Investor
Robert D. Tymoczko*
William H. Luers o Vice President
o Trustee; Chairman and President,
U.N. Association of America John Millette*
o Vice President and Secretary
Kathryn L. Quirk*
o Trustee, Vice President and John R. Hebble*
Assistant Secretary o Treasurer
Joan E. Spero Caroline Pearson*
o Trustee; President, Doris Duke o Assistant Secretary
Charitable Foundation
Thomas J. Devine
o Honorary Trustee; Consultant *Scudder Kemper Investments, Inc.
43
<PAGE>
Investment Products and Services
- --------------------------------------------------------------------------------
1-800-SCUDDER www.scudder.com
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
The Scudder Family of Funds+++
- --------------------------------------------------------------------------------
<S> <C>
Money Market U.S. Growth and Income
Scudder U.S. Treasury Money Fund Scudder Balanced Fund
Scudder Cash Investment Trust Scudder Dividend & Growth Fund
Scudder Money Market Series -- Scudder Growth and Income Fund
Prime Reserve Shares* Scudder Select 500 Fund
Premium Shares* Scudder S&P 500 Index Fund
Managed Shares* Scudder Real Estate Investment Fund
Scudder Government Money Market
Series -- Managed Shares* U.S. Growth
Value
Tax Free Money Market+ Scudder Large Company Value Fund
Scudder Tax Free Money Fund Scudder Value Fund***
Scudder Tax Free Money Market Scudder Small Company Value Fund
Series -- Managed Shares* Scudder Micro Cap Fund
Scudder California Tax Free Money Fund** Growth
Scudder New York Tax Free Money Fund** Scudder Classic Growth Fund***
Scudder Large Company Growth Fund
Tax Free+ Scudder Select 1000 Growth Fund
Scudder Limited Term Tax Free Fund Scudder Development Fund
Scudder Medium Term Tax Free Fund Scudder 21st Century Growth Fund
Scudder Managed Municipal Bonds
Scudder High Yield Tax Free Fund Global Equity
Scudder California Tax Free Fund** Worldwide
Scudder Massachusetts Limited Term Scudder Global Fund
Tax Free Fund** Scudder International Value Fund
Scudder Massachusetts Tax Free Fund** Scudder International Growth and
Scudder New York Tax Free Fund** Income Fund
Scudder Ohio Tax Free Fund** Scudder International Fund++
Scudder International Growth Fund
U.S. Income Scudder Global Discovery Fund***
Scudder Short Term Bond Fund Scudder Emerging Markets Growth Fund
Scudder GNMA Fund Scudder Gold Fund
Scudder Income Fund Regional
Scudder Corporate Bond Fund Scudder Greater Europe Growth Fund
Scudder High Yield Bond Fund Scudder Pacific Opportunities Fund
Scudder Latin America Fund
Global Income The Japan Fund, Inc.
Scudder Global Bond Fund
Scudder International Bond Fund Industry Sector Funds
Scudder Emerging Markets Income Fund Choice Series
Scudder Financial Services Fund
Asset Allocation Scudder Heath Care Fund
Scudder Pathway Conservative Portfolio Scudder Technology Fund
Scudder Pathway Balanced Portfolio
Scudder Pathway Growth Portfolio Preferred Series
Scudder Tax Managed Growth Fund
Scudder Tax Managed Small Company Fund
</TABLE>
44
<PAGE>
- --------------------------------------------------------------------------------
1-800-SCUDDER www.scudder.com
- --------------------------------------------------------------------------------
Retirement Programs and Education Accounts
- --------------------------------------------------------------------------------
Retirement Programs Education Accounts
Traditional IRA Education IRA
Roth IRA UGMA/UTMA
SEP-IRA
Keogh Plan
401(k), 403(b) Plans
Variable Annuities
Scudder Horizon Plan**+++ +++
Scudder Horizon Advantage**+++ +++ +++
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Closed-End Funds#
- -----------------------------------------------------------------------------------------
<S> <C>
The Argentina Fund, Inc. Scudder Global High Income Fund, Inc.
The Brazil Fund, Inc. Scudder New Asia Fund, Inc.
The Korea Fund, Inc. Scudder New Europe Fund, Inc.
Montgomery Street Income Securities, Inc.
</TABLE>
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 or classes thereof 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.
++ Only the International 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.
+++ +++ +++ A no-load variable annuity contract issued by Glenbrook Life and
Annuity Company and underwritten by Allstate Financial Services,
Inc., sold 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.
45
<PAGE>
Scudder Solutions
- --------------------------------------------------------------------------------
1-800-SCUDDER www.scudder.com
Convenient Automatic Investment Plan
ways to invest,
quickly and A convenient investment program in which money is
reliably electronically debited from your bank account monthly to
regularly purchase fund shares and "dollar cost average" --
buy more shares when the fund's price is lower and fewer
when it's higher, which can reduce your average purchase
price over time.*
Automatic Dividend Transfer
The most timely, reliable, and convenient way to purchase
shares -- use distributions from one Scudder fund to
purchase shares in another, automatically (accounts with
identical registrations or the same social security or tax
identification number).
QuickBuy
Lets you purchase Scudder fund shares electronically,
avoiding potential mailing delays; money for each of your
transactions is electronically debited from a previously
designated bank account.
Payroll Deduction and Direct Deposit
Have all or part of your paycheck -- even government checks
-- invested in up to four Scudder funds at one time.
* 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- Scudder Automated Information Line: SAIL(TM) --
clock electronic 1-800-343-2890
account
service and Personalized account information, the ability to exchange
information, or redeem shares, and information on other Scudder funds
including some and services via touchtone telephone.
transactions
Scudder's Web Site -- www.scudder.com
Personal Investment Organizer: Offering account information
and transactions, interactive worksheets, prospectuses and
applications for all Scudder funds, plus your current asset
allocation, whenever your need them. Scudder's site also
provides news about Scudder funds, retirement planning
information, and more.
46
<PAGE>
- --------------------------------------------------------------------------------
1-800-SCUDDER www.scudder.com
Retirees and Automatic Withdrawal Plan
those who depend
on investment You designate the bank account, determine the schedule (as
proceeds for frequently as once a month) and amount of the redemptions,
living expenses and Scudder does the rest.
can enjoy these
convenient, Distributions Direct
timely, and
reliable Automatically deposits your fund distributions into the
automated bank account you designate within three business days after
withdrawal each distribution is paid.
programs
QuickSell
Provides speedy access to your money by electronically
crediting your redemption proceeds to the bank account you
previously designated.
For more Call a Scudder representative at
information about 1-800-SCUDDER
these services
Or visit our Web site at
www.scudder.com
Please address The Scudder Funds
all written PO Box 2291
correspondence Boston, Massachusetts
to 02107-2291
47
<PAGE>
About the Fund's Adviser
Scudder Kemper Investments, Inc. is one of the largest and most experienced
investment management organizations worldwide, managing more than $280 billion
in assets globally for mutual fund investors, retirement and pension plans,
institutional and corporate clients, insurance companies, and private family and
individual accounts.
Scudder Kemper Investments has a rich heritage of innovation, integrity, and
client-focused service. In 1997, Scudder, Stevens & Clark, Inc., founded 80
years ago as one of the nation's first investment counsel organizations, joined
the Zurich Financial Services 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 Financial Services Group. The Zurich Financial Services 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
PO Box 2291
Boston, MA 02107-2291
1-800-SCUDDER
www.scudder.com
