[Image] Scudder High Yield Bond Fund Profile [Image]
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The fund profile, a supplement to the full prospectus, is designed as
an easy-to-read summary of fund risks, fees, and objectives. You can
click on any question to link to the Fund's prospectus and get more
information on that topic. Or, if you wish, you can proceed directly
to the Fund's prospectus. Once you have read the prospectus and
considered your investment goals, you can proceed to a Scudder Funds
application.
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Fund Profile
April 1, 1997
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1. What Is The Fund's Objective?
Scudder High Yield Bond Fund seeks a high level of current income and,
secondarily, capital appreciation through investment primarily in
below investment-grade domestic debt securities.
2. What Does The Fund Invest In?
Under normal market conditions, the Fund invests at least 65% of its
total assets in high yield, below investment-grade (i.e., rated Ba1 or
below by Moody's Investors Service, Inc. or BB+ or below by Standard &
Poor's, or, if unrated, are of equivalent quality as determined by the
Fund's investment adviser, Scudder, Stevens & Clark, Inc.) domestic
debt securities. The Fund defines "domestic debt securities" as
securities of companies domiciled in the U.S. or organized under the
laws of the U.S. or for which the U.S. trading market is a primary
market. The Fund can invest without limit in lower-quality domestic
debt securities, sometimes referred to as "high yield" or "junk
bonds". The Fund's adviser intends to focus investments in securities
qualifying for a Ba or B rating from Moody's or a BB or B rating from
S&P. The Fund invests primarily in medium- and long-term fixed-income
securities.
The Fund is designed as a long-term investment for investors able to
bear credit, interest rate and other risks in exchange for the
potential for high current income and capital appreciation. The Fund
will typically invest in a variety of issuers and industries. Using a
research-intensive security selection process, the adviser will focus
primarily on the following types of high yield opportunities: young,
growing companies with attractive business opportunities and positive
credit trends; companies with stable to growing cash flows that have
the ability to improve the strength of their balance sheets;
established companies that may have experienced financial setbacks,
but are displaying evidence of improving business trends; and
securities judged to be undervalued. The adviser will rely on
fundamental corporate credit analysis, incorporating proprietary
credit screening tools.
The Fund may also invest in a variety of other securities consistent
with its investment objectives, including: convertible and preferred
securities, U.S. Treasury and Agency bonds, Brady bonds,
mortgage-backed and asset-backed securities, common stocks and
warrants, securities issued by real estate investment trusts, bank
loans, loan participations, dollar rolls, indexed securities and
restricted securities, such as those acquired through private
placements. The Fund may also invest in foreign securities, including
foreign bonds issued in local currency and those issued in emerging
markets.
3. What Are The Risks Of Investing In The Fund?
The Fund involves above-average bond fund risk. The Fund may invest
without limit in debt securities rated below investment-grade (i.e.,
"junk bonds"). Bonds of this type are considered to be speculative
with regard to the payment of interest and return of principal, and
generally involve a greater risk of default and more price volatility
than securities in higher rating categories. The yields on high
yield/high risk bonds will fluctuate over time. Lower rated and
unrated securities are especially subject to adverse changes in
general economic conditions, including changes in interest rates, and
changes in the financial condition of their issuers.
In addition, investment in sovereign debt can involve a high degree of
risk. Emerging market securities in which the Fund may invest can be
more volatile and less liquid than securities in more developed
markets. Foreign securities often have less publicly available
information and are subject to different regulations than domestic
securities. Political events, changes in the perceived
creditworthiness of issuers, high rates of inflation, higher brokerage
costs, fluctuating national interest rates, thinner trading markets,
foreign taxes and movements in foreign currencies will affect the
value of the Fund's holdings which determine the Fund's share price.
The Fund's share price is likely to vary from day to day. You incur
principal risk when you invest, because your shares, when sold, may be
worth more or less than what you paid for them. Purchasers should
carefully assess the risks associated with an investment in the Fund.
4. For Whom Is This Fund Appropriate?
You may wish to consider this Fund if you are seeking a high level of
current income and:
o plan to hold your investment for the long-term (at least 5 years
or more),
o can tolerate fluctuations in share price,
o have or plan to have other investments for the benefit of
diversification, and
o understand the risks of investing in high yield/high risk bonds.
5. What Are The Fund's Expenses And Fees?
There are two kinds of expenses that a shareholder may incur, directly
or indirectly, by investing in a mutual fund. These types of expenses,
as they relate to Scudder High Yield Bond Fund are:
Shareholder transaction expenses --
Expenses charged directly to your account for various transactions.
Sales Commission None
Commissions to Reinvest Dividends None
Redemption Fees payable to the Fund 1.00%*
Exchange Fees payable to the Fund 1.00%*
Annual Fund operating expenses (after expense maintenance) --
Estimated expenses paid by the Fund before it distributes its net
investment income, expressed as a percentage of the Fund's average
daily net assets. Figures below are for the fiscal year, during
which Scudder has agreed to maintain the total annualized expenses
of the Fund at not more than 0% of average daily net assets. Had
Scudder not done so, it is estimated that total annualized expenses
would be: 1.82%, including 0.70% for manage ment fees. Scudder will
continue this expense maintenance until June 30, 1997.
Investment management fee (after waiver) 0%
12b-1 fees None
Other expenses (after waiver and 0%
reimbursement) ----
Total Fund operating expenses 0%
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Example:
Assuming a 5% annual return and redemption at the end of each
period, the total expenses relating to a $1,000 investment would be:
1 Year 3 Years
$0 $0
This example assumes reinvestment of all dividends and distributions
and that the total Fund operating expenses listed above remain the
same each year. This example should not be considered a representation
of past or future expenses or return. Actual Fund expenses and return
vary from year to year and may be higher or lower than those shown.
Please note that there is a $5 service fee if you request redemption
proceeds via wire.
*Imposed only on redemptions or exchanges of shares held less than one
year.
6. How Has The Fund Performed Historically?
This chart shows how the Fund has performed since it commenced
operations on June 28, 1996, assuming reinvestment of all
distributions. Performance is historical and may not be indicative of
future results. Total return and principal value will fluctuate.
Life of Fund
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The Fund's Total Return for the
period ended March 31, 1997 10.83%*
* Not annualized.
If the adviser had not maintained the Fund's expenses, total return
would have been lower.
7. Who Manages The Fund?
The Fund's investment adviser is Scudder, Stevens & Clark, Inc., a
leading provider of U.S. and international investment management for
clients throughout the world. The Fund is managed by a team of Scudder
investment professionals, who each play an important role in the
Fund's management process.
Kelly D. Babson, Lead Portfolio Manager, is a portfolio manager in
Scudder's Global Bond Group, with 15 years experience in fixed-income
investing including ten years of high yield portfolio management prior
to joining Scudder. Christopher L. Gootkind, Portfolio Manager, has
been doing credit research at Scudder since 1986, and is currently
head of Corporate Credit Research in Scudder's Global Bond Group. Mr.
Gootkind is a portfolio manager for Scudder Short Term Bond Fund.
Stephen A. Wohler, Portfolio Manager, is currently Director of
Scudder's Global Bond Group, overseeing all of fixed-income investing
for the firm. He is the Active Value Product Leader, as well as a
member of the portfolio management teams for Scudder Income Fund and
Scudder Zero Coupon 2000 Fund.
8. How Can I Invest?
To make it easy for you to open an account, you may invest by mail,
phone, fax, or in person. The minimum initial investment is $2,500
($1,000 for IRAs), except that shareholders may open a regular account
with a minimum of $1,000 if an investment program of $100/month is
established. A shareholder who maintains an account balance of less
than $2,500 without establishing an investment program, may be
assessed an annual fee of $10.00, payable to the Fund. You may also
exchange Fund shares within the Scudder Family of Funds.
9. How Can I Redeem Shares?
You may redeem shares at the current share price on any business day
by telephone, fax, or mail. There may be a 1% fee retained by the Fund
which is imposed only on redemptions or exchanges of shares held less
than one year.
10. When Are Distributions Made?
The Fund typically makes capital gains distributions in November or
December. Dividends from net investment income are declared daily and
distributed monthly. You may elect to receive distributions in cash or
have them reinvested in additional shares of the Fund.
Generally, dividends from net investment income are taxable to
shareholders as ordinary income. Long-term capital gains
distributions, if any, are taxable as long-term capital gains
regardless of the length of time shareholders have owned shares.
Short-term capital gains and any other taxable income distributions
are taxable as ordinary income.
11. What Services Does Scudder Provide?
As a shareholder, you'll enjoy:
o professional service from representatives who can answer your
questions and execute your transactions
o automated toll-free touchtone access to account information,
share prices and yields, and to perform transactions
o Scudder's quarterly shareholder newsletter, Perspectives
o regular, informative reports about the performance of your Fund
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[Image]Scudder wants you to make informed investment decisions. This
Fund Profile contains key information about the Fund. If you would
like more information before you invest, please consult the Fund's
accompanying prospectus. For details about the Fund's holdings or
recent investment strategies, please review the Fund's most recent
annual or semiannual report. The reports are free and may be ordered
by calling 1-800-225-2470.
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