Scudder
Large Company
Growth Fund
Semiannual Report
April 30, 1998
Pure No-Load(TM) Funds
A fund seeking long-term growth of capital through investment primarily in the
equity securities of large U.S. growth companies.
A pure no-load(TM) fund with no commissions to buy, sell, or exchange shares.
SCUDDER (logo)
<PAGE>
Scudder Large Company Growth Fund
- - --------------------------------------------------------------------------------
Total Net Assets as of
Date of Inception: 5/15/91 4/30/98: $362.3 million Ticker Symbol: SCQGX
- - --------------------------------------------------------------------------------
o For the six-month period ended April 30, 1998, Scudder Large Company Growth
Fund returned 21.77%, resulting in a ranking in the top 20% of 953 growth funds
according to Lipper Analytical Services.^1
o The Fund's exposure to various sectors was little changed over the six months.
The strategy continues to be one of emphasizing individual stocks rather than
sector over- and underweights.
o As earnings growth began to show signs of slowing over the period, we
maintained our discipline of concentrating on companies with growing shares in
expanding markets, secure franchises, and skilled management teams.
Table of Contents
3 Letter from the Fund's President 14 Financial Statements
4 Performance Update 17 Financial Highlights
5 Portfolio Summary 18 Notes to Financial Statements
6 Portfolio Management Discussion 21 Investment Products and Services
9 Glossary of Investment Terms 22 Scudder Solutions
10 Investment Portfolio
^1 Source: Lipper Analytical Services. The Fund also ranked in the top 32% of
growth funds for the one-year period, and the top 47% for the five-year
period.
2 - Scudder Large Company Growth Fund
<PAGE>
Letter from the Fund's President
Dear Shareholders,
As we began Scudder Large Company Growth Fund's fiscal period in October
1997, the environment was clouded by the Asian financial crisis and a market
correction. Concerns eased by the beginning of 1998 as the anticipated flood of
cheap imports from Asia failed to appear. While corporate earnings growth rates
slowed during the first quarter of the year, the U.S. economy continues to show
many healthy signs. At the same time, short-term interest rates -- at least for
now -- are unchanged.
The U.S. equity market has responded with jubilance to this environment,
with large-cap growth stocks turning in top performance for the six-month period
covered by this report. The Fund has been a direct participant, and portfolio
managers Valerie Malter and George Fraise have remained keenly aware of both the
opportunities and risks presented by this strong market. Beginning on page, they
discuss the Fund's performance and the strategy for managing the Fund over the
six-month period.
At the beginning of 1998, your Fund's investment adviser changed its name
to Scudder Kemper Investments, Inc. from Scudder, Stevens & Clark, Inc.,
reflecting the acquisition of a majority interest in Scudder by Zurich Insurance
Company, and the combining of Scudder's business with that of Zurich Kemper
Investments, Inc. We think this combination is very positive, and will provide
your Fund's manager with expanded resources.
For those of you who are interested in new Scudder products, April 6th
marked the debut of our latest entrant in the growth and income category,
Scudder Real Estate Investment Fund. In addition, we will add another fund in
this category on July 17, Scudder Dividend & Growth Fund. For further
information on these new funds, please call 1-800-225-2470.
Thank you for your investment in Scudder Large Company Growth Fund. If you
have any questions about your Fund, please call Scudder Investor Relations at
the number above, or visit our web site at http://funds.scudder.com.
Sincerely,
/s/Daniel Pierce
Daniel Pierce
President,
Scudder Large Company Growth Fund
3 - Scudder Large Company Growth Fund
<PAGE>
PERFORMANCE UPDATE as of April 30, 1998
- - ----------------------------------------------------------------
FUND INDEX COMPARISONS
- - ----------------------------------------------------------------
Total Return
- - ----------------------------------------------
Period Ended Growth of Average
4/30/98 $10,000 Cumulative Annual
- - ----------------------------------------------
SCUDDER LARGE COMPANY GROWTH FUND
- - ----------------------------------------------
1 Year $ 14,196 41.96% 41.96%
5 year $ 25,364 153.64% 20.46%
Life of Fund* $ 32,031 220.31% 18.19%
- - ----------------------------------------------
RUSSELL 1000 GROWTH INDEX
- - ----------------------------------------------
1 Year $ 14,208 42.08% 42.08%
5 Year $ 28,550 185.50% 23.33%
Life of Fund* $ 32,854 228.54% 18.75%
- - ----------------------------------------------
*The Fund commenced operations on May 15, 1991. Index
comparisons begin May 31, 1991.
- - -----------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- - -----------------------------------------------------------------
A chart in the form of a line graph appears here,
illustrating the Growth of a $10,000 Investment.
The data points from the graph are as follows:
SCUDDER LARGE COMPANY GROWTH FUND
Year Amount
- - ----------------------
5/91* $10,000
'92 $11,251
'93 $12,094
'94 $12,590
'95 $14,092
'96 $18,362
'97 $21,609
'98 $30,676
RUSSELL 1000 GROWTH INDEX
Year Amount
- - ----------------------
5/91* $10,000
'92 $11,022
'93 $11,508
'94 $11,948
'95 $14,292
'96 $18,946
'97 $23,123
'98 $32,854
Yearly periods ended April 30
The Russell 1000 Growth Index is an unmanaged capitalization-weighted price
index of the 1000 largest U.S. growth companies traded on the NYSE, AMEX and
Nasdaq. Index returns assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees or expenses.
- - -----------------------------------------------------------------
RETURNS AND PER SHARE INFORMATION
- - -----------------------------------------------------------------
A chart in the form of a bar graph appears here,
illustrating the Fund Total Return (%) and Index Total
Return (%) with the exact data points listed in the table
below.
Yearly periods ended April 30
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
1992* 1993 1994 1995 1996 1997 1998
-------------------------------------------------------------
NET ASSET VALUE... $ 14.05 $ 15.08 $ 15.40 $ 15.88 $ 19.89 $ 21.53 $ 28.85
INCOME DIVIDENDS.. $ .03 $ .03 $ .07 $ .15 $ .14 $ -- $ --
CAPITAL GAINS
DISTRIBUTIONS..... $ .02 $ -- $ .24 $ 1.09 $ .60 $ 1.77 $ 1.46
FUND TOTAL
RETURN (%)........ 17.48 7.50 4.10 11.93 30.30 17.68 41.96
INDEX TOTAL
RETURN (%)........ 10.22 4.40 3.82 19.62 32.56 22.05 42.08
</TABLE>
On March 1, 1997, the Fund adopted its current name. Prior to that date,
the Fund was known as the Scudder Quality Growth Fund. All performance is
historical, assumes reinvestment of all dividends and capital gains, and is not
indicative of future results. Investment return and principal value will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than when purchased. If the Adviser had not maintained the Fund's expenses,
the total returns for life of Fund would have been lower.
4 - Scudder Large Company Growth Fund
<PAGE>
PORTFOLIO SUMMARY as of April 30, 1998
- - ---------------------------------------------------------------------------
ASSET ALLOCATION
- - ---------------------------------------------------------------------------
Equity Holdings 95%
Cash Equivalents 5%
- - --------------------------------------
100%
- - --------------------------------------
The Fund pursues a fully invested
approach to selecting large-cap
growth stocks.
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- - --------------------------------------------------------------------------
SECTORS
(Excludes 5% Cash Equivalents)
- - --------------------------------------------------------------------------
Health 22%
Consumer Staples 20%
Technology 16%
Consumer Discretionary 11%
Manufacturing 9%
Media 7%
Financial 7%
Durables 5%
Service Industries 3%
- - --------------------------------------
100%
- - --------------------------------------
Sector allocations were relatively
unchanged over the six months.
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- - --------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS
(34% of Portfolio)
- - --------------------------------------------------------------------------
1. GENERAL ELECTRIC CO.
Leading producer of electrical equipment
2. PFIZER, INC.
International pharmaceutical company
3. PROCTER & GAMBLE CO.
Diversified manufacturer of consumer
products
4. INTEL CORP.
Semiconductor memory circuits
5. COCA-COLA CO., INC.
International soft drink company
6. AMERICAN INTERNATIONAL GROUP, INC.
International insurance holding
company
7. HOME DEPOT, INC.
Building materials and home improvement
products
8. MICROSOFT CORP.
Computer operating systems software
9. COLGATE-PALMOLIVE CO.
Manufacturer of household and personal care
products
10. GILETTE CO.
Shaving and personal care products
The Fund's top holdings are well
known and representative of its
emphasis on high quality
companies.
For more complete details about the Fund's investment portfolio, see page 10.
A monthly Investment Portfolio Summary and quarterly Portfolio Holdings are
available upon request.
5 - Scudder Large Company Growth Fund
<PAGE>
Portfolio Management Discussion
In this interview, Valerie F. Malter and George P. Fraise, portfolio managers of
Scudder Large Company Growth Fund, discuss the market environment and their
current investment strategy.
Q: The U.S. stock market has continued to record impressive performance. What
has been responsible for these outstanding returns?
A: U.S. large-cap stock investors have had the best of all worlds. There is just
enough regional strife and uncertainty abroad to make the U.S. market appear
attractive. The economy is steady with relatively low interest rates and modest
inflation -- an environment that makes high price/earnings ratios seem
sustainable. Corporations are, in general, reporting good earnings, despite an
overall deceleration of earnings growth rates in 1997. Cash flows into the
investment markets remain strong, fueled by savings associated with employee
retirement plans as well as renewed buying from foreign investors.
Overall, historical, or "normal" market measurements appear to have less
relevance in the current environment. Low dividend yields reflect the fact that
the S&P 500 Index now includes more low- or non-dividend paying stocks than ever
before, including Microsoft and Intel. Some of the largest companies are
actually reducing payout ratios -- such as Coca-Cola, which has cut its payout
ratio in half, from 60% to 30% -- as companies find better uses for cash,
including stock buybacks.
Q: How did the Fund perform for the six-month period ended April 30, 1998?
A: The Fund returned 21.77%, slightly underperforming the 23.07% return of the
unmanaged Russell 1000 Growth Index (an index of large U.S. growth stocks) and
the 22.49% return of the unmanaged S&P 500 Index. In relation to its peers, the
Fund performed very well, ranking in the top 20% of 953 growth funds according
to Lipper Analytical Services. On a longer term basis, the Fund's 41.96%
one-year return edged out the 41.07% return of the S&P 500.
The Fund has been benefiting from a generally favorable environment. Large-cap
stocks continued to outperform small-caps for the six-month period. In a
reversal of the environment at the end of 1997, large-cap growth stocks have
significantly outperformed large-cap value stocks year-to-date through April 30,
1998.
Q: What was your approach to managing the portfolio in this environment?
A: We continued to stay with our individual stock selection approach, preferring
to build the portfolio stock-by-stock, with a focus on buying shares of high
quality growth companies. We believe investing in companies capable of
delivering earnings in line with or in excess of our expectations will lead to
market outperformance over time. Therefore, our focus is on finding those
companies where we have a high degree of confidence in the consistency and
sustainability of the earnings growth. In terms of sector allocation, the
portfolio remains relatively sector neutral, reflecting our focus on stock
selection.
6 - Scudder Large Company Growth Fund
<PAGE>
Portfolio Characteristics
Averages as of April 30, 1998
-----------------------------------------------------
Russell
1000
Growth S&P 500
Fund Index Index
-----------------------------------------------------
Price/earnings
ratio (projected)
1998 fiscal year 29 26 22
1999 fiscal year 25 22 19
Earnings per share
Projected 5-year 18.93% 16.53% 13.70%
Dividend yield 0.75% 0.99% 1.45%
Weighted average
market cap
(billions $) 76.3 61.3 64.2
----------------------------------------------------
Q: How did your emphasis on high quality companies fare during the six months?
A: While the period has been an ideal environment for domestic equity investors,
an interesting factor affected the Fund's performance in the early part of 1998:
the outperformance of a number of lower quality names. These second- and
third-tier stocks, as measured by management and balance sheet strength,
performed as well as, or even better than, many high quality stocks such as
those we hold in the portfolio.
For example, in March Lowe's outperformed Home Depot, Best Buy outperformed
Circuit City, and Kmart outperformed Wal-Mart. Applied Materials, KLA, and
Teradyne all showed good performance even though earnings revisions were
negative and industry fundamentals continued to deteriorate overall. Bay
Networks and 3Com pre-released earnings disappointments, but these stocks
actually went up.
Given our penchant for buying the best quality growth stocks in a sector, the
portfolio was swimming against the tide in this particular environment. We
believe firmly, however, that "quality" will not underperform for long, and we
are maintaining our discipline of buying only the best companies in any given
sector of the market.
Q: What were the major contributors to performance?
A: Technology stocks bounced back strongly in early 1998. Moreover, our stock
selection in this area helped the Fund's tech holdings outperform this component
of the Russell 1000 Growth Index. Other stocks that were particularly good
performers benefited from favorable fundamentals, including Pfizer, which
introduced Viagra, a new drug for impotence. Warner Lambert rose on the
continued strength of Lipitor, a drug for heart disease, and Resulin for
diabetes. Clear Channel (operator of TV and radio stations) made a timely
strategic acquisition, while Outdoor Systems (advertising) continued to deliver
strong earnings. Microsoft's earnings continued to exceed expectations, as
overall unit volumes remained strong, despite disappointing sales at one of its
largest customers.
Q: And, the detractors from performance?
A: Deteriorating fundamentals prompted the sale of Ciena (systems for
fiber-optic communications networks). In the fourth quarter, we initiated a
position in Schlumberger (oil and gas exploration and production services), but
7 - Scudder Large Company Growth Fund
<PAGE>
the sector and the stock have been poor performers, as oil prices have continued
to slide. In the energy sector, our underweight position partially offset poor
stock selection. The consumer staples sector was also an underperformer.
THE PRINTED DOCUMENT CONTAINS A BAR CHART HERE
BAR CHART TITLE:
Performance Attribution versus the Russell 1000
Growth Index
BAR CHART PERIOD:
Six-Month Period Ended April 30, 1998
BAR CHART DATA:
Consumer Discretionary 4%
Consumer Staples -11%
Durables -62%
Energy 63%
Finance 10%
Manufacturing 28%
Health 12%
Media 67%
Metals & Minerals 11%
Service Industries -13%
Technology 9%
Transportation 2%
Utilities 0
Zero axis = Russell 1000 Growth Index
Strong performance by holdings in the energy and media sectors contributed to
the positive overall return of the Fund, while durables and service industry
holdings underperformed the Fund's benchmark.
- - ----------
Q: What is your outlook for domestic growth stocks?
A: One of the biggest fears for investors has been the possibility of rising
interest rates. If the economy expands too rapidly and inflation accelerates,
the Federal Reserve could raise interest rates, which would likely result in a
decline in stock prices. An economic slowdown -- while unfavorable for the
equity market overall -- would be better for large-cap growth stocks because
they tend to outperform on a relative basis in such an environment. Although we
are not forecasting a recession, we are expecting economic growth to slow to
levels closer to historical averages. We believe this should continue to provide
a favorable environment for large-cap growth stocks and the Fund.
8 - Scudder Large Company Growth Fund
<PAGE>
Glossary of Investment Terms
CYCLICAL STOCKS Stocks of companies whose earnings fluctuate
with the business cycle. Cyclical industries
include steel, cement, paper, machinery, and
autos.
FUNDAMENTAL RESEARCH Analysis of companies based on the projected
impact of management, products, sales, and
earnings on balance sheets and income
statements. Distinct from technical analysis,
which evaluates the attractiveness of a stock
based on historical price and trading volume
movements, rather than the financial results
of the underlying company.
GROWTH STOCK Stock of a company that has displayed greater
than average earnings growth and is expected
to continue to increase profits rapidly going
forward. Stocks of such companies usually
trade at a higher price relative to earnings
(higher p/e) and exhibit greater price
volatility.
MARKET CAPITALIZATION The value of a company's outstanding shares
of common stock, determined by multiplying
the number of shares outstanding by the share
price (Shares x Price = Market
Capitalization). The universe of publicly
traded companies is frequently divided into
large-, mid-, and small-capitalizations.
OVER/UNDER WEIGHTING Refers to the allocation of assets -- usually
by sector, industry, or country -- within a
portfolio relative to the benchmark index,
(i.e. the Russell 1000 Growth Index) or an
investment universe.
PRICE/EARNINGS RATIO (P/E) A widely used gauge of a stock's valuation
(also "earnings multiple") that indicates what investors are paying for
a company's earnings on a per-share basis.
Typically based on a company's projected
earnings for the next 12 months, a higher
"earnings multiple" indicates a higher than
expected growth rate and the potential for
greater price fluctuations.
VALUE STOCK A company whose stock price does not fully
reflect its intrinsic value, as indicated by
price/earnings ratio, price/book value ratio,
dividend yield, or some other valuation
measure, relative to its industry or the
market overall. Value stocks tend to display
less price volatility and higher dividend
yields.
(Sources: Scudder Kemper Investments, Inc.; Barron's Dictionary of Finance and
Investment Terms)
9 - Scudder Large Company Growth Fund
<PAGE>
Investment Portfolio as of April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal Market
Amount ($) Value ($)
- - ------------------------------------------------------------------------------------------------------------------------------
Repurchase Agreements 5.2%
- - ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Repurchase Agreement with Donaldson, Lufkin & Jenrette dated 4/30/98 at 5.5%, to be
repurchased at $19,055,911 on 5/1/98, collateralized by a $14,318,000 U.S. Treasury -----------
Bond, 8.75%, 8/15/20 (Cost $19,053,000) ................................................. 19,053,000 19,053,000
-----------
Shares
- - ------------------------------------------------------------------------------------------------------------------------------
Common Stocks 94.8%
- - ------------------------------------------------------------------------------------------------------------------------------
Consumer Discretionary 10.9%
Department & Chain Stores 8.8%
Consolidated Stores Corp.* ............................................................... 80,700 3,228,000
Costco Companies, Inc.* .................................................................. 95,900 5,358,413
Home Depot, Inc. ......................................................................... 150,700 10,492,488
Nordstrom, Inc. .......................................................................... 56,500 3,697,219
Wal-Mart Stores, Inc. .................................................................... 180,700 9,136,644
-----------
31,912,764
-----------
Hotels & Casinos 2.1%
Host Marriott Corp.* ..................................................................... 181,700 3,531,794
Royal Caribbean Cruises Ltd. ............................................................. 60,800 4,157,200
-----------
7,688,994
-----------
Specialty Retail 0.0%
Corporate Express, Inc.* ................................................................. 4,582 46,106
-----------
Consumer Staples 18.5%
Alcohol & Tobacco 2.0%
Philip Morris Companies, Inc. ............................................................ 192,200 7,171,463
Food & Beverage 7.4% -----------
Coca-Cola Co., Inc. ...................................................................... 162,400 12,322,100
H.J. Heinz Co. ........................................................................... 134,200 7,313,900
Interstate Bakeries Corp. ................................................................ 123,500 3,913,406
Suiza Foods Corp.* ....................................................................... 58,300 3,454,275
-----------
27,003,681
-----------
Package Goods/Cosmetics 9.1%
Colgate-Palmolive Co. .................................................................... 108,700 9,749,031
Gillette Co. ............................................................................. 82,019 9,468,068
Procter & Gamble Co. ..................................................................... 168,600 13,856,813
-----------
33,073,912
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
10 - Scudder Large Company Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Market
Shares Value ($)
- - ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Health 20.5%
Biotechnology 0.8%
Guidant Corp. ............................................................................ 45,100 3,016,063
Health Industry Services 4.2% -----------
HBO & Company, Inc. ...................................................................... 75,400 4,509,863
HEALTHSOUTH Corp.* ....................................................................... 187,100 5,648,081
Total Renal Care Holdings, Inc.* ......................................................... 155,300 5,144,313
-----------
15,302,257
-----------
Hospital Management 1.4%
Tenet Healthcare Corp. * ................................................................. 134,400 5,031,600
Pharmaceuticals 14.1% -----------
Bristol-Myers Squibb Co. ................................................................. 64,800 6,860,700
Eli Lilly & Co. .......................................................................... 112,398 7,818,686
Johnson & Johnson ........................................................................ 65,200 4,653,650
Merck & Co., Inc. ........................................................................ 65,000 7,832,500
Pfizer, Inc. ............................................................................. 138,500 15,763,031
Schering-Plough Corp. .................................................................... 41,900 3,357,238
Warner-Lambert Co. ....................................................................... 28,700 5,429,681
-----------
51,715,486
-----------
Financial 6.2%
Banks 1.0%
First Union Corp. ........................................................................ 58,600 3,537,975
Insurance 5.2%
American International Group, Inc. ....................................................... 82,125 10,804,570
MBIA, Inc. ............................................................................... 55,300 4,126,763
UNUM Corp. ............................................................................... 78,800 4,235,500
-----------
19,166,833
-----------
Media 7.1%
Advertising 2.8%
Interpublic Group of Companies Inc. ...................................................... 92,350 5,898,856
Outdoor Systems, Inc.* ................................................................... 135,525 4,302,919
-----------
10,201,775
-----------
Broadcasting & Entertainment 4.3%
Clear Channel Communications, Inc. ....................................................... 72,600 6,842,550
Univision Communication, Inc.* ........................................................... 118,100 4,524,706
</TABLE>
The accompanying notes are an integral part of the financial statements.
11 - Scudder Large Company Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Market
Shares Value ($)
- - ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Walt Disney Co. .......................................................................... 34,400 4,276,350
-----------
15,643,606
-----------
Service Industries 2.4%
Miscellaneous Commercial Services 1.2%
AccuStaff, Inc.* ......................................................................... 122,600 4,398,269
Miscellaneous Consumer Services 1.2% -----------
Service Corp. International .............................................................. 107,400 4,430,250
Durables 4.6% -----------
Aerospace 1.4%
AlliedSignal Inc. ........................................................................ 113,000 4,950,813
Telecommunications Equipment 3.2% -----------
Ascend Communications, Inc.* ............................................................. 110,400 4,809,300
Lucent Technologies, Inc. ................................................................ 92,600 7,049,175
-----------
11,858,475
-----------
Manufacturing 9.4%
Chemicals 1.1%
Monsanto Co. ............................................................................. 78,500 4,150,688
Diversified Manufacturing 7.3% -----------
General Electric Co. ..................................................................... 226,000 19,238,250
Textron, Inc. ............................................................................ 95,800 7,496,350
-----------
26,734,600
-----------
Electrical Products 1.0%
FORE Systems, Inc.* ...................................................................... 157,100 3,593,663
Technology 15.2% -----------
Computer Software 6.5%
Cadence Design System Inc.* .............................................................. 97,500 3,540,469
Computer Associates International, Inc. .................................................. 85,200 4,989,525
Microsoft Corp.* ......................................................................... 109,800 9,895,725
PeopleSoft Inc.* ......................................................................... 117,700 5,473,050
-----------
23,898,769
-----------
EDP Peripherals 0.9%
EMC Corp.* ............................................................................... 73,900 3,408,638
Electronic Data Processing 1.4% -----------
Sun Microsystems, Inc.* .................................................................. 127,100 5,234,931
Office/Plant Automation 1.6% -----------
Cisco Systems, Inc.* ..................................................................... 77,550 5,680,538
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
12 - Scudder Large Company Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Market
Shares Value ($)
- - ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Semiconductors 4.8%
Intel Corp. .............................................................................. 163,000 13,172,438
Linear Technology Corp. .................................................................. 52,700 4,242,350
-----------
17,414,788
- - ------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (Cost $213,266,011) 346,266,937
- - ------------------------------------------------------------------------------------------------------------------------------
==============================================================================================================================
- - ------------------------------------------------------------------------------------------------------------------------------
Total Investment Portfolio -- 100.0% (Cost $232,319,011) (a) 365,319,937
- - ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
(a) The cost for federal income tax purposes was $232,528,657. At April 30,
1998, net unrealized appreciation for all securities based on tax cost was
$132,791,280. This consisted of aggregate gross unrealized appreciation
for all securities in which there was an excess of market value over tax
cost of $134,298,578 and aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over market value of
$1,507,298.
The accompanying notes are an integral part of the financial statements.
13 - Scudder Large Company Growth Fund
<PAGE>
Financial Statements
Statement of Assets and Liabilities
as of April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Assets
- - ------------------------------------------------------------------------------------------------------------------------------
Investments, at market (identified cost $232,319,011) .................. $ 365,319,937
Cash ................................................................... 992
Receivable for investments sold ........................................ 14,977,514
Receivable for Fund shares sold ........................................ 477,923
Dividends and interest receivable ...................................... 190,425
Other assets ........................................................... 5,182
-------------
Total assets ........................................................... 380,971,973
Liabilities
- - -----------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased ...................................... 16,731,458
Payable for Fund shares redeemed ....................................... 1,627,723
Accrued management fee ................................................. 201,601
Other payables and accrued expenses .................................... 125,557
-------------
Total liabilities ...................................................... 18,686,339
-----------------------------------------------------------------------------------------
Net assets, at market value $ 362,285,634
-----------------------------------------------------------------------------------------
Net Assets
- - ------------------------------------------------------------------------------------------------------------------------------
Net assets consist of:
Undistributed net investment income .................................... 285,027
Unrealized appreciation on investments ................................. 133,000,926
Accumulated net realized gain .......................................... 20,065,216
Paid-in capital ........................................................ 208,934,465
-----------------------------------------------------------------------------------------
Net assets, at market value $ 362,285,634
-----------------------------------------------------------------------------------------
Net Asset Value
- - ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share ($362,285,634/
12,557,358 outstanding shares of beneficial interest, $.01 par value, -------------
unlimited number of shares authorized) .............................. $28.85
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
14 - Scudder Large Company Growth Fund
<PAGE>
Statement of Operations
six months ended April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Investment Income
- - ------------------------------------------------------------------------------------------------------------------------------
Income:
Dividends (net of foreign taxes withheld of $10,730) ................... $ 1,774,983
Interest ............................................................... 333,132
-------------
2,108,115
Expenses:
Management fee ......................................................... 1,126,155
Services to shareholders ............................................... 555,781
Custodian and accounting fees .......................................... 44,209
Trustees' fees and expenses ............................................ 15,566
Reports to shareholders ................................................ 25,442
Auditing ............................................................... 17,620
Legal .................................................................. 8,118
Registration fees ...................................................... 27,682
Other .................................................................. 2,515
-------------
1,823,088
-----------------------------------------------------------------------------------------
Net investment income 285,027
-----------------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investment transactions
- - ------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from investments .............................. 17,889,371
Net unrealized appreciation (depreciation) on investments during
the period ............................................................. 45,482,190
-----------------------------------------------------------------------------------------
Net gain (loss) on investment transactions 63,371,561
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 63,656,588
-----------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
15 - Scudder Large Company Growth Fund
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended Year
April 30, Ended
1998 October 31,
Increase (Decrease) in Net Assets (Unaudited) 1997
- - ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income (loss) ......................................... $ 285,027 $ (125,567)
Net realized gain (loss) on investments .............................. 17,889,371 19,434,917
Net unrealized appreciation (depreciation) on
investments during the period ..................................... 45,482,190 42,639,713
Net increase (decrease) in net assets resulting from ------------ ------------
operations ........................................................ 63,656,588 61,949,063
Distributions to shareholders from: ------------ ------------
Net realized gains from investment transactions ...................... (16,858,738) (17,790,946)
Fund share transactions: ------------ ------------
Proceeds from shares sold ............................................ 64,543,467 131,500,078
Net asset value of shares issued to shareholders in
reinvestment of distributions ..................................... 16,410,252 17,272,174
Cost of shares redeemed .............................................. (53,530,910) (126,119,027)
------------- ------------
Net increase (decrease) in net assets from Fund share
transactions ...................................................... 27,422,809 22,653,225
------------- ------------
Increase (decrease) in net assets .................................... 74,220,659 66,811,342
Net assets at beginning of period .................................... 288,064,975 221,253,633
Net assets at end of period (including undistributed ------------- ------------
net investment income of $285,027) ................................ $362,285,634 $288,064,975
------------- ------------
Other Information
- - ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Fund shares
Shares outstanding at beginning of period ............................ 11,477,024 10,441,357
------------ ------------
Shares sold .......................................................... 2,395,658 5,688,934
Shares issued to shareholders in reinvestment of distributions ....... 667,898 850,846
Shares redeemed ...................................................... (1,983,222) (5,504,113)
------------- ------------
Net increase (decrease) in Fund shares ............................... 1,080,334 1,035,667
------------- ------------
Shares outstanding at end of period .................................. 12,557,358 11,477,024
------------- ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
16 - Scudder Large Company Growth Fund
<PAGE>
Financial Highlights
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
<TABLE>
<CAPTION>
Six Months For the Period
Ended May 15, 1991
April 30, (commencement of
1998 (a) Years Ended October 31, operations) to
(Unaudited) 1997(a) 1996(a) 1995 1994 1993 1992 October 31, 1991
- - ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning -----------------------------------------------------------------------------------------
of period .................... $ 25.10 $ 21.19 $ 18.44 $ 16.17 $ 16.42 $ 15.30 $ 13.65 $ 12.00
Income from investment -----------------------------------------------------------------------------------------
operations:
Net investment income (loss) .... .02 (.01) .08 .11 .16 .06 .02 .03
Net realized and unrealized
gain (loss) on investments ... 5.19 5.69 3.41 3.40 (.09) 1.09 1.68 1.62
Total from investment -----------------------------------------------------------------------------------------
operations ................... 5.21 5.68 3.49 3.51 .07 1.15 1.70 1.65
Less distributions from: -----------------------------------------------------------------------------------------
Net investment income ........... -- -- (.14) (.15) (.08) (.03) (.03) --
Net realized gains on
investment transactions ...... (1.46) (1.77) (.60) (1.09) (.24) -- (.02) --
-----------------------------------------------------------------------------------------
Total distributions ............. (1.46) (1.77) (.74) (1.24) (.32) (.03) (.05) --
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Net asset value, end of period .. $ 28.85 $ 25.10 $ 21.19 $ 18.44 $ 16.17 $ 16.42 $ 15.30 13.65
- - ----------------------------------------------------------------------------------------------------------------------------
Total Return (%) ................ 21.77** 28.84 19.49 23.78 .39 7.49 12.47 13.75**
Ratios and Supplemental Data
Net assets, end of period
($ millions) ................. 362 288 221 173 113 126 101 30
Ratio of operating expenses
net, to average daily net
assets (%) ................... 1.32* 1.21 1.07 1.17 1.25 1.20 1.25 1.25*
Ratio of operating expenses
before expense
reductions, to average
daily net assets (%) ......... 1.32* 1.21 1.07 1.17 1.25 1.20 1.40 2.67*
Ratio of net investment
income (loss) to average
daily net assets (%) ......... .21* (.05) .41 .71 .96 .39 .24 .83*
Portfolio turnover rate (%) ..... 54.2* 67.9 68.8 91.6 119.7 111.4 27.4 11.5*
Average commission rate
paid (b) ..................... $ .0566 $ .0546 $ .0551 $ -- $ -- $ -- $ -- $ --
</TABLE>
(a) Based on monthly average shares outstanding during the period.
(b) Average commission rate paid per share of common and preferred stocks is
calculated for fiscal years ending on or after October 31, 1996.
* Annualized
** Not annualized
17 - Scudder Large Company Growth Fund
<PAGE>
Notes to Financial Statements (Unaudited)
A. Significant Accounting Policies
Scudder Large Company Growth Fund (formerly Quality Growth Fund) (the "Fund") is
a diversified series of the Investment Trust (the "Trust") (formerly Scudder
Investment Trust). The Trust is organized as a Massachusetts business trust and
is registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management estimates.
The policies described below are followed consistently by the Fund in the
preparation of its financial statements.
Security Valuation. Portfolio securities which are traded on U.S. or foreign
stock exchanges are valued at the most recent sale price reported on the
exchange on which the security is traded most extensively. If no sale occurred,
the security is then valued at the calculated mean between the most recent bid
and asked quotations. If there are no such bid and asked quotations, the most
recent bid quotation is used. Securities quoted on the Nasdaq System, for which
there have been sales, are valued at the most recent sale price reported on such
system. If there are no such sales, the value is the most recent bid quotation.
Securities which are not quoted on the Nasdaq System but are traded in another
over-the-counter market are valued at the most recent sale price on such market.
If no sale occurred, the security is then valued at the calculated mean between
the most recent bid and asked quotations. If there are no such bid and asked
quotations, the most recent bid quotation shall be used. Money market
instruments purchased with an original maturity of sixty days or less are valued
at amortized cost. All other securities are valued at their fair value as
determined in good faith by the Valuation Committee of the Board of Trustees.
Repurchase Agreements. The Fund may enter into repurchase agreements with
certain banks and broker/dealers whereby the Fund, through its custodian,
receives delivery of the underlying securities, the amount of which at the time
of purchase and each subsequent business day is required to be maintained at
such a level that the market value, depending on the maturity of the repurchase
agreement, is equal to at least 100.5% of the repurchase price.
Federal Income Taxes. The Fund's policy is to comply with the requirements of
the Internal Revenue Code, as amended, which are applicable to regulated
investment companies and to distribute all of its taxable income to its
shareholders. Accordingly, the Fund paid no federal income taxes and no federal
income tax provision was required.
Distribution of Income and Gains. Distributions of net investment income are
made annually. During any particular year net realized gains from investment
transactions, in excess of available capital loss carryforwards, would be
taxable to the Fund if not distributed and, therefore, will be distributed to
shareholders annually. An additional distribution may be made to the extent
necessary to avoid the payment of a four percent federal excise tax. Earnings
and profits distributed to shareholders on redemption of Fund shares ("tax
equalization") may be utilized by the Fund, to the extent permissible, as part
of the Fund's dividends paid deduction on its federal income tax return.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax regulations
which may differ from generally accepted accounting principles. The differences
primarily relate to investments in certain securities sold at a loss. As a
result, net investment income (loss) and net realized gain (loss) on investment
transactions for a reporting period may differ significantly from distributions
during such period. Accordingly, the
18 - Scudder Large Company Growth Fund
<PAGE>
Fund may periodically make reclassifications among certain of its capital
accounts without impacting the net asset value of the Fund.
The Fund uses the identified cost method for determining realized gain or loss
on investments for both financial and federal income tax reporting purposes.
Other. Investment security transactions are accounted for on a trade
date basis. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income is recorded on the
accrual basis.
B. Purchases and Sales of Securities
For the six months ended April 30, 1998, purchases and sales of investment
securities (excluding short-term investments) aggregated $89,322,522 and
$84,270,359, respectively.
C. Related Parties
Effective December 31, 1997, Scudder, Stevens & Clark, Inc. ("Scudder") and The
Zurich Insurance Company ("Zurich"), an international insurance and financial
services organization, formed a new global investment organization by combining
Scudder's business with that of Zurich's subsidiary, Zurich Kemper Investments,
Inc. As a result of the transaction, Scudder changed its name to Scudder Kemper
Investments, Inc. ("Scudder Kemper" or the "Adviser"). The transaction between
Scudder and Zurich resulted in the termination of the Fund's Investment
Management Agreement with Scudder. However, a new Investment Management
Agreement (the "Management Agreement") between the Fund and Scudder Kemper was
approved by the Trust's Board of Trustees and by the Fund's Shareholders. The
Management Agreement, which was effective December 31, 1997, is the same in all
material respects as the corresponding previous Investment Management Agreement,
except that Scudder Kemper is the new investment adviser to the Fund.
Under the Management Agreement with Scudder Kemper, the Fund pays the Adviser a
fee equal to an annual rate of 0.70% of the Fund's average daily net assets,
computed and accrued daily and payable monthly. As manager of the assets of the
Fund, the Adviser directs the investments of the Fund in accordance with its
investment objectives, policies, and restrictions. The Adviser determines the
securities, instruments, and other contracts relating to investments to be
purchased, sold or entered into by the Fund. In addition to portfolio management
services, the Adviser provides certain administrative services in accordance
with the Management Agreement. For the six months ended April 30, 1998, the fee
pursuant to these agreements amounted to $1,126,155.
Scudder Service Corporation ("SSC"), a subsidiary of the Adviser, is the
transfer, dividend paying and shareholder service agent for the Fund. For the
six months ended April 30, 1998, the amount charged to the Fund by SSC
aggregated $282,229, of which $49,786 was unpaid at April 30, 1998.
The Fund is one of several Scudder Funds (the "Underlying Funds") in which the
Scudder Pathway Series Portfolios (the "Portfolios") invest. In accordance with
the Special Servicing Agreement entered into by the Adviser, the Portfolios, the
Underlying Funds, SSC, SFAC, STC, and Scudder Investor Services, Inc., expenses
from the operation of the Portfolios are borne by the Underlying Funds based on
each Underlying Fund's proportionate share of assets owned by the Portfolios. No
Underlying Funds will be charged expenses that exceed the estimated savings to
each respective Underlying Fund. These
19 - Scudder Large Company Growth Fund
<PAGE>
estimated savings result from the elimination of separate shareholder accounts
which either currently are or have potential to be invested in the Underlying
Funds. At April 30, 1998, the Special Servicing Agreement expense charged to the
Fund amounted to $45,204.
Scudder Trust Company ("STC"), a subsidiary of the Adviser, provides
recordkeeping and other services in connection with certain retirement and
employee benefit plans invested in the Fund. For the six months ended April 30,
1998, the amount charged to the Fund by STC aggregated $194,055, of which
$32,632 was unpaid at April 30, 1998.
Scudder Fund Accounting Corporation ("SFAC"), a subsidiary of the Adviser, is
responsible for determining the daily net asset value per share and maintaining
the portfolio and general accounting records of the Fund. For the six months
ended April 30, 1998, the amount charged to the Fund by SFAC aggregated $30,217,
of which $5,410 was unpaid at April 30, 1998.
The Fund pays each of its Trustees not affiliated with the Adviser $4,800
annually plus specified amounts for attended board and committee meetings. For
the six months ended April 30, 1998, Trustees fees and expenses aggregated
$15,566.
20 - Scudder Large Company Growth Fund
<PAGE>
Investment Products and Services
The Scudder Family of Funds+++
- - --------------------------------------------------------------------------------
Money Market
- - ------------
Scudder U.S. Treasury Money Fund
Scudder Cash Investment Trust
Scudder Money Market Series --
Premium Shares*
Managed Shares*
Scudder Government Money Market Series --
Managed Shares*
Tax Free Money Market+
- - ----------------------
Scudder Tax Free Money Fund
Scudder Tax Free Money Market Series--
Managed Shares*
Scudder California Tax Free Money Fund**
Scudder New York Tax Free Money Fund**
Tax Free+
- - ---------
Scudder Limited Term Tax Free Fund
Scudder Medium Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder High Yield Tax Free Fund
Scudder California Tax Free Fund**
Scudder Massachusetts Limited Term Tax Free Fund**
Scudder Massachusetts Tax Free Fund**
Scudder New York Tax Free Fund**
Scudder Ohio Tax Free Fund**
Scudder Pennsylvania Tax Free Fund**
U.S. Income
- - -----------
Scudder Short Term Bond Fund
Scudder Zero Coupon 2000 Fund
Scudder GNMA Fund
Scudder Income Fund
Scudder High Yield Bond Fund
Global Income
- - -------------
Scudder Global Bond Fund
Scudder International Bond Fund
Scudder Emerging Markets Income Fund
Asset Allocation
- - ----------------
Scudder Pathway Conservative Portfolio
Scudder Pathway Balanced Portfolio
Scudder Pathway Growth Portfolio
Scudder Pathway International Portfolio
U.S. Growth and Income
- - ----------------------
Scudder Balanced Fund
Scudder Growth and Income Fund
Scudder S&P 500 Index Fund
Scudder Real Estate Investment Fund
U.S. Growth
- - -----------
Value
Scudder Large Company Value Fund
Scudder Value Fund***
Scudder Small Company Value Fund
Scudder Micro Cap Fund
Growth
Scudder Classic Growth Fund***
Scudder Large Company Growth Fund
Scudder Development Fund
Scudder 21st Century Growth Fund
Global Growth
- - -------------
Worldwide
Scudder Global Fund
Scudder International Growth and Income Fund
Scudder International Fund
Scudder Global Discovery Fund***
Scudder Emerging Markets Growth Fund
Scudder Gold Fund
Regional
Scudder Greater Europe Growth Fund
Scudder Pacific Opportunities Fund
Scudder Latin America Fund
The Japan Fund, Inc.
Industry Sector Funds
- - ---------------------
Choice Series
Scudder Financial Services Fund
Scudder Health Care Fund
Scudder Technology Fund
Retirement Programs and Education Accounts
- - --------------------------------------------------------------------------------
Retirement Programs
- - -------------------
Traditional IRA
Roth IRA
SEP IRA
Keogh Plan
401(k), 403(b) Plans
Scudder Horizon Plan**+++ +++
(a variable annuity)
Education Accounts
- - ------------------
Education IRA
UGMA/UTMA
Closed-End Funds#
- - --------------------------------------------------------------------------------
The Argentina Fund, Inc.
The Brazil Fund, Inc.
The Korea Fund, Inc.
Montgomery Street Income Securities, Inc.
Scudder Global High Income Fund, Inc.
Scudder New Asia Fund, Inc.
Scudder New Europe Fund, Inc.
Scudder Spain and Portugal Fund, Inc.
For complete information on any of the above Scudder funds, including management
fees and expenses, call or write for a free prospectus. Read it carefully before
you invest or send money. +++Funds within categories are listed in order from
expected least risk to most risk. Certain Scudder funds may not be available for
purchase or exchange. +A portion of the income from the tax-free funds may be
subject to federal, state, and local taxes. *A class of shares of the Fund.
**Not available in all states. ***Only the Scudder Shares of the Fund are part
of the Scudder Family of Funds. +++ +++A no-load variable annuity contract
provided by Charter National Life Insurance Company and its affiliate, offered
by Scudder's insurance agencies, 1-800-225-2470. #These funds, advised by
Scudder Kemper Investments, Inc., are traded on the New York Stock Exchange and,
in some cases, on various other stock exchanges.
21 - Scudder Large Company Growth Fund
<PAGE>
Scudder Solutions
<TABLE>
<CAPTION>
Convenient ways to invest, quickly and reliably:
- - ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Automatic Investment Plan QuickBuy
A convenient investment program in which money is Lets you purchase Scudder fund shares
electronically debited from your bank account monthly to electronically, avoiding potential mailing delays;
regularly purchase fund shares and "dollar cost average" money for each of your transactions is
-- buy more shares when the fund's price is lower and electronically debited from a previously designated bank
fewer when it's higher, which can reduce your average account.
purchase price over time.
Automatic Dividend Transfer Payroll Deduction and Direct Deposit
The most timely, reliable, and convenient way to Have all or part of your paycheck -- even government
purchase shares -- use distributions from one Scudder checks -- invested in up to four Scudder funds at
fund to purchase shares in another, automatically one time.
(accounts with identical registrations or the same
social security or tax identification number).
Dollar cost averaging involves continuous investment in securities regardless of price
fluctuations and does not assure a profit or protect against loss in declining markets.
Investors should consider their ability to continue such a plan through periods of low price
levels.
Around-the-clock electronic account service and information, including some transactions:
- - ------------------------------------------------------------------------------------------------------------------------------
Scudder Automated Information Line: SAIL(TM) -- Scudder's Web Site -- http://funds.scudder.com
1-800-343-2890
Scudder Electronic Account Services: Offering
Personalized account information, the ability to account information and transactions, interactive
exchange or redeem shares, and information on other worksheets, prospectuses and applications for all
Scudder funds and services via touchtone telephone. Scudder funds, plus your current asset allocation,
whenever you need them. Scudder's Site also
provides news about Scudder funds, retirement
planning information, and more.
Retirees and those who depend on investment proceeds for living expenses can enjoy these convenient,
timely, and reliable automated withdrawal programs:
- - ------------------------------------------------------------------------------------------------------------------------------
Automatic Withdrawal Plan QuickSell
You designate the bank account, determine the schedule Provides speedy access to your money by
(as frequently as once a month) and amount of the electronically crediting your redemption proceeds
redemptions, and Scudder does the rest. to the bank account you previously designated.
Distributions Direct
Automatically deposits your fund distributions into the
bank account you designate within three business days
after each distribution is paid.
For more information about these services, call a Scudder representative at 1-800-225-5163
- - ------------------------------------------------------------------------------------------------------------------------------
22 - Scudder Large Company Growth Fund
<PAGE>
Mutual Funds and More -- Brokerage and Guidance Services:
- - ------------------------------------------------------------------------------------------------------------------------------
Scudder Brokerage Services Scudder Portfolio Builder
Offers you access to a world of investments, A free service designed to help suggest ways investors like
including stocks, corporate bonds, Treasuries, plus you can diversify your portfolio among domestic and global,
over 8,000 mutual funds from at least 150 mutual as well as equity, fixed-income, and money market funds,
fund companies. And Scudder Fund Folio(SM) provides using Scudder funds.
investors with access to a marketplace of more than
500 no-load funds from well-known companies--with no Personal Counsel from Scudder(SM)
transaction fees or commissions. Scudder
shareholders can take advantage of a Scudder Developed for investors who prefer the benefits of no-load
Brokerage account already reserved for them, with Scudder funds but want ongoing professional assistance in
no minimum investment. For information about managing a portfolio. Personal Counsel(SM) is a highly
Scudder Brokerage Services, call 1-800-700-0820. customized, fee-based asset management service for
individuals investing $100,000 or more.
Fund Folio funds held less than six months will be charged a fee for redemptions. You can buy
shares directly from the fund itself or its principal underwriter or distributor without
paying this fee. Scudder Brokerage Services, Inc., 42 Longwater Drive, Norwell, MA 02061.
Member SIPC.
Personal Counsel From Scudder(SM) and Personal Counsel(SM) are service marks of and represent a
program offered by Scudder Investor Services, Inc., Adviser.
For more information about these services, call a Scudder representative at 1-800-225-5163
- - ------------------------------------------------------------------------------------------------------------------------------
Additional Information on How to Contact Scudder:
- - ------------------------------------------------------------------------------------------------------------------------------
For existing account services and transactions Please address all written correspondence to
Scudder Investor Relations -- 1-800-225-5163 The Scudder Funds
P.O. Box 2291
For establishing 401(k) and 403(b) plans Boston, Massachusetts
Scudder Defined Contribution Services -- 02107-2291
1-800-323-6105
Or Stop by a Scudder Investor Center
For information about The Scudder Funds, including Many shareholders enjoy the personal, one-on-one service of
additional applications and prospectuses, or for the Scudder Investor Centers. Check for an Investor Center near
answers to investment questions you -- they can be found in the following cities:
Scudder Investor Relations -- 1-800-225-2470 Boca Raton Chicago San Francisco
[email protected] Boston New York
</TABLE>
23 - Scudder Large Company Growth Fund
<PAGE>
About the Fund's Adviser
Scudder Kemper Investments, Inc., is one of the largest and most experienced
investment management oganizations worldwide, managing more than $200 billion in
assets globally for mutual fund investors, retirement and pension plans,
institutional and corporate clients, insurance companies, and private family and
individual accounts. It is one of the ten largest mutual fund companies in the
U.S.
Scudder Kemper Investments has a rich heritage of innovation, integrity, and
client-focused service. In 1997, Scudder, Stevens & Clark, Inc., founded 79
years ago as one of the nation's first investment counsel organizations, joined
the Zurich Group. As a result, Zurich's subsidiary, Zurich Kemper Investments,
Inc., with 50 years of mutual fund and investment management experience, was
combined with Scudder. Headquartered in New York, Scudder Kemper Investments
offers a full range of investment counsel and asset management capabilities,
based on a combination of proprietary research and disciplined, long-term
investment strategies. With its global investment resources and perspective,
the firm seeks opportunities in markets throughout the world to meet the needs
of investors.
Scudder Kemper Investments, Inc., the global asset management firm, is a member
of the Zurich Group. The Zurich Group is an internationally recognized leader in
financial services, including property/casualty and life insurance, reinsurance,
and asset management.
This information must be preceded or accompanied by a
current prospectus.
Portfolio changes should not be considered recommendations
for action by individual investors.
SCUDDER
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