How to compare a Scudder Family of Funds pure no-load(TM) fund
This information is designed to help you understand the various costs and
expenses of investing in Scudder High Yield Bond Fund (the "Fund"). By reviewing
this table and those in other mutual funds' prospectuses, you can compare the
Fund's fees and expenses with those of other funds. With Scudder's pure
no-load(TM) funds, you pay no commissions to purchase or redeem shares, or to
exchange from one fund to another. As a result, all of your investment goes to
work for you.
1) Shareholder transaction expenses: Expenses charged directly to your
individual account in the Fund for various transactions.
Sales commissions to purchase shares (sales load) NONE
Commissions to reinvest dividends NONE
Deferred sales charge NONE
Redemption fees payable to the Fund 1.00%*
Exchange fees payable to the Fund 1.00%*
2) Annual Fund operating expenses: Expenses paid by the Fund before it
distributes its net investment income, expressed as a percentage of the
Fund's average daily net assets for the fiscal year ended February 28, 1998.
Investment management fee (after waiver) 0.22%**
12b-1 fees NONE
Other expenses (after reimbursement) 0.53%**
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Total Fund operating expenses (after waiver and reimbursement) 0.75%**
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Example Based on the level of total Fund operating expenses listed above, the
total expenses relating to a $1,000 investment, assuming a 5% annual return and
redemption at the end of each period, are listed below. Investors do not pay
these expenses directly; they are paid by the Fund before it distributes its net
investment income to shareholders.
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$8 $24 $42 $93
See "Fund organization -- Investment adviser" for further information about the
investment management fee. This example assumes reinvestment of all dividends
and distributions and that the percentage amounts listed under "Annual Fund
operating expenses" 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.
* 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. You may redeem
by writing or calling the Fund. If you wish to receive redemption proceeds
via wire, there is a $5 wire service fee. For additional information, please
refer to "Transaction information -- Exchanging and redeeming shares."
** Effective January 1, 1999, until December 31, 1999, the Adviser and certain
of its subsidiaries have agreed to waive and reimburse, respectively, fees
payable by the Fund to the extent necessary so that the total annualized
expenses of the Fund do not exceed 0.75% of average daily net assets.
Expenses shown above are restated to reflect what the Fund would have paid
during the fiscal year ended February 28, 1998 if expenses had been
maintained at 0.75% throughout the period. If the Adviser and its
subsidiaries had not agreed to waive and reimburse, respectively, their
fees, annualized Fund expenses would have been: investment management fee
0.70%, other expenses 0.53% and total operating expenses 1.23% for the
fiscal year ended February 28, 1998.
