Scudder
Large Company
Growth Fund
Semiannual Report
April 30, 1999
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No-Load Funds
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A fund seeking long-term growth of capital through investment primarily in the
equity securities of seasoned, financially strong U.S. growth companies.
A no-load fund with no commissions to buy, sell, or exchange shares.
SCUDDER
<PAGE>
Scudder Large Company Growth Fund
Date of Inception: 5/15/91 Total Net Assets as of Ticker Symbol: SCQGX
4/30/99: $830 million
o The Fund was well positioned to benefit from the powerful rally in domestic,
large-cap growth stocks.
o Management's selection of stellar performers in the retail, media, and
telecommunications sectors helped the Fund to outpace its benchmark over the
six-month period ended April 30, 1999.
o While the lofty valuations of large companies bear watching at this juncture,
management believes that a continued focus on the fundamentals underlying these
valuations will lead to strong relative performance over the long term.
Table of Contents
3 Letter from the Fund's President 17 Financial Highlights
4 Performance Update 18 Notes to Financial Statements
5 Portfolio Summary 21 Shareholder Meeting Results
6 Portfolio Management Discussion 24 Officers and Trustees
9 Glossary of Investment Terms 25 Investment Products and Services
10 Investment Portfolio 26 Scudder Solutions
14 Financial Statements
2 - Scudder Large Company Growth Fund
<PAGE>
Letter from the Fund's President
Dear Shareholders,
At the time of our previous report to you on Scudder Large Company
Growth Fund, the U.S. markets had just begun to rebound from the global crises
of last summer. Since then, low interest rates and continued strength in the
U.S. economy have led the domestic stock market into record territory. Leading
the rally have been large Company Growth Fund stocks, which have been the
primary beneficiaries of the favorable environment. Just as it was
well-positioned to ride out the crisis last fall, the Fund has been equally
well-positioned to take advantage of the market's rebound.
The management team of Scudder Large Company Growth Fund continues to
invest in stocks whose fundamentals support consistent future earnings growth.
Specifically, they focus on companies that they believe are the strongest within
each sector of the U.S. stock market. This strategy allowed the Fund to outpace
its benchmark in a period when investors were seeking companies with the most
reliable growth characteristics. The Fund's long-term performance record has
earned it a four-star overall Morningstar Rating(TM) and a four-star rating for
the three- and five-year periods ended April 30.^1 In addition, the Fund was
ranked in the top 27% of domestic growth funds by Lipper Analytical Services for
the trailing one-year period ended on the same date, and in the 24th and 22nd
percentiles for the three- and five-year periods, respectively.^2 For more
information on recent market conditions and the management team's investment
strategy, please see the Portfolio Management Discussion beginning on page 6.
Thank you for your continued investment in Scudder Large Company Growth
Fund. If you have any questions about your investment, please call Scudder
Investor Information at 1-800-225-2470, or visit our Web site at
www.scudder.com.
Sincerely,
/s/Daniel Pierce
Daniel Pierce
President,
Scudder Large Company Growth Fund
1 Source: Morningstar proprietary rankings reflect historical risk-adjusted
performance as of April 30, 1999. Ratings are subject to change monthly, and
past performance is no guarantee of future results. Morningstar ratings are
calculated from the Fund's three-, five-, and ten-year average annual returns
in excess of 90-day Treasury bills with appropriate fee adjustments, and a
risk factor that reflects fund performance below 90-day T-bill returns.
Scudder Large Company Growth Fund received a 4-star rating for the three- and
five-year periods, respectively. The top 10% of funds in a broad asset class
receive 5 stars, and the next 22.5% receive 4 stars. Scudder Large Company
Growth Fund was rated among 2976 and 1816 funds in its broad asset class for
the three- and five-year periods, respectively.
2 Source: Lipper Analytical Services, Inc., is an independent analyst of
investment performance. Performance includes reinvestment of dividends and
capital gains. Past performance is no guarantee of future results. Scudder
Large Company Growth Fund's Lipper ranking was 275 out of 1035 domestic
growth funds for the one-year period ended April 30, 1999, 149 out of 629
funds for the three-year period, and 85 out of 391 for the five-year period.
3 - Scudder Large Company Growth Fund
<PAGE>
Performance Update as of April 30, 1999
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Fund Index Comparisons
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Total Return
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Period Growth of Average
Ended 4/30/1999 $ 10,000 Cumulative Annual
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Scudder Large Company Growth Fund
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1 Year $ 12,243 22.43% 22.43%
5 Year $ 29,830 198.30% 24.43%
Life of $ 39,215 292.15% 18.72%
Fund*
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Russell 1000 Growth Index
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1 Year $ 12,653 26.53% 26.53%
5 Year $ 34,792 247.92% 28.30%
Life of $ 41,569 315.69% 19.71%
Fund*
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* The Fund commenced operation on May 15, 1991.
Index comparisons begin May 31, 1991.
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Growth of a $10,000 Investment
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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 Russell 1000
Growth Fund Growth Index
5/91* 10000 10000
'92 11251 11022
'93 12094 11508
'94 12590 11948
'95 14092 14292
'96 18362 18496
'97 21609 23123
'98 30676 32854
'99 37557 41569
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
- --------------------------------------------------------------------------------
THE PRINTED DOCUMENT CONTAINS A BAR CHART HERE
ILLUSTRATING THE FUND TOTAL RETURN (%) AND
INDEX TOTAL RETURN (%)
CHART DATA:
Yearly periods ended April 30
<TABLE>
<CAPTION>
1992* 1993 1994 1995 1996 1997 1998 1999
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value $14.05 $15.08 $15.40 $15.88 $19.89 $21.53 $28.85 $33.52
- -----------------------------------------------------------------------------------------------------------------
Income Dividends $ .03 $ .03 $ .07 $ .15 $ .14 $ -- $ -- $ --
- -----------------------------------------------------------------------------------------------------------------
Capital Gains Distributions $ .02 $ -- $ .24 $ 1.09 $ .60 $ 1.77 $ 1.46 $ 1.71
- -----------------------------------------------------------------------------------------------------------------
Fund Total Return (%) 17.48 7.50 4.10 11.93 30.30 17.68 41.96 22.43
- -----------------------------------------------------------------------------------------------------------------
Index Total Return (%) 10.22 4.40 3.82 19.62 32.56 22.05 42.08 26.53
- -----------------------------------------------------------------------------------------------------------------
</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 the life of Fund would have been lower.
4 - Scudder Large Company Growth Fund
<PAGE>
Portfolio Summary as of April 30, 1999
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Asset Allocation
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A graph in the form of a pie chart appears here, illustrating the exact data
points in the table below.
Equity Holdings 96%
Cash Equivalents 4%
--------------------------------------
100%
--------------------------------------
The Fund seeks to remain fully invested in equities at all times.
- -----------------------------------------
Sectors
(Excludes 4% Cash Equivalents)
- -----------------------------------------
A graph in the form of a pie chart appears here, illustrating the exact data
points in the table below.
Technology 18%
Health 17%
Consumer Discretionary 14%
Consumer Staples 11%
Durables 11%
Media 8%
Manufacturing 7%
Financial 6%
Service Industries 5%
Communications 3%
--------------------------------------
100%
--------------------------------------
Strong stock selection within the technology, retail, and communications sectors
had a positive impact on Fund performance.
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Ten Largest Equity Holdings
(36% of Portfolio)
- -----------------------------------------
1. Microsoft Corp.
Producer of computer operating
systems software
2. Intel Corp.
Producer of semiconductor memory
circuits
3. Cisco Systems, Inc.
Manufacturer of computer network
products
4. General Electric Corp.
Producer of electrical equipment
5. Pfizer, Inc.
International pharmaceutical
company
6. Lucent Technologies, Inc.
Designer of public and private
computer networks
6. America Online Inc.
Provider of online computer
services
8. Home Depot, Inc.
Building materials and home
improvement products
9. Merck & Co. Inc.
Leading drug manufacturer
10. Medtronic Inc.
Manufacturer of cardiac pacemakers
Management utilizes a bottom-up approach to uncover what they believe are best
companies within each sector of the market.
For more complete details about the Fund's investment portfolio, see page 10. A
quarterly Fund Summary and Portfolio Holdings are available upon request.
5 - Scudder Large Company Growth Fund
<PAGE>
Portfolio Management Discussion
In the following interview, Valerie F. Malter and George P. Fraise, portfolio
managers of Scudder Large Company Growth Fund, discuss the recent market
environment and the Fund's current investment strategy.
Q: The market environment has been highly favorable for large-cap growth stocks
in the past six months. What have been the underlying drivers of this trend?
A: The sector has enjoyed favorable conditions not only during the six-month
reporting period, but over the last year and a half, as well. The combination of
lower interest rates and steady growth in the U.S. has created an environment
that supports higher valuations and prolongs the economic cycle. Since the state
of the overseas economies was highly uncertain for much of the period, inflows
into the stock market tended to go to the types of larger, high-growth companies
that tend to maintain earnings growth even in difficult external conditions. As
a result, the sector generally outperformed smaller companies and value stocks,
which tend to have less reliable earnings. While this longstanding trend
reversed in April, the investment backdrop proved to be extremely beneficial for
the Fund over the full period.
Q: How did the rally in large growth stocks impact Fund performance?
A: The market environment certainly put the wind at our backs, but it was our
individual stock selection that allowed the Fund to outperform its benchmark
index. For the six months ended April 30, 1999, the Fund returned 25.43% versus
22.32% for the S&P 500 Index and 24.93% for the Russell 1000 Growth Index, the
benchmark that we believe most appropriately depicts our style. Our holdings in
the retail, communications, and technology sectors were the most significant
contributors to outperformance.
Q: What are some specific companies in these sectors that performed well for the
Fund?
A: Our retail holdings were again standout performers, as the continued strength
in U.S. consumer spending fueled strong earnings growth at companies such as
Costco, Dayton Hudson, Consolidated Stores, and Wal-Mart. The 50% rise in
Consolidated Stores, a stock we opted to hold onto during a very disappointing
1998, illustrates the value of our long-term strategy. The turnaround that we
had anticipated in their Odd Lot/Big Lot stores has in fact materialized, and
same store sales growth has been dramatic. One disappointment in the retail
sector was Rite-Aid, which preannounced a shortfall in first quarter profits due
to faster-than- expected new store openings. Believing that the company's recent
operating errors will have an ongoing impact on profitability, we removed
Rite-Aid from the portfolio.
Our weighting in the media sector also continued to shine, as Omnicom (up 47%),
Univision (up 96%), and Clear Channel Communications (up 51%), all provided
outstanding performance. We continue to be believers in the fundamentals driving
the media company stocks we hold, and expect the stocks to be very good
performers for many quarters to come. In fact, the recent positive trends in
radio advertising spending point to stronger performance at both Clear Channel
and Infinity Broadcasting, the portfolio's other holdings in radio.
6 - Scudder Large Company Growth Fund
<PAGE>
Technology and communications stocks also continued to benefit Fund performance,
despite the April weakness in stocks with higher price-to-earnings ratios.
Holdings that stood out were America Online, which appreciated a stunning 348%
over the six months, Applied Materials (up 55%), EMC Corp. (up 69%), and Sun
Microsystems (up 105%).
Q: Please describe the approach you use to select stocks for the Fund.
A: Our fundamental goal is to own the best companies in each sector of the U.S.
stock market. We concentrate on the factors we believe are the most likely to
indicate strong future performance, and avoid companies with deteriorating
fundamentals. To accomplish this, we utilize a bottom-up approach to select
individual stocks that we feel will deliver superior earnings growth over time.
Each company must demonstrate a strong brand franchise, growing sales volume,
rising market share, outstanding management, and consistent earnings growth.
Valuation is also a consideration, but is a lower priority than these criteria.
Believing that it is impossible to call bottoms and tops in the market, we do
not try to time the market, make large sector bets, or evaluate global economic
trends. To mitigate the uncertainty associated with these factors, we strive to
keep the Fund's sector weightings in line with those of the large-cap universe,
i.e., within 5% of the sector weightings in the Russell 1000 Growth Index. In so
doing, we are free to focus on individual stock selection.
One of the most important aspects of this strategy is that it is designed to
keep the portfolio from being "torpedoed" by earnings disappointments. In the
last report, we mentioned that we had eliminated Gillette from the Fund due to
its slowing growth rate. While its razor business has been doing well, our
research showed us that its other divisions were producing inferior returns.
Very simply, Gillette did not fit our criterion of being the most attractive
company in its sector. As a result, we were not surprised when Gillette issued
an earnings warning in early April, causing the stock to fall by roughly 15%. By
focusing on the most well-positioned companies and seeking to avoid those that
are the most vulnerable to potential disappointments, we have been able to
reduce the risk of the portfolio over time.
Q: What holdings detracted from performance?
A: Stocks in the consumer staples, healthcare, and financial services sectors
generally underperformed. Consumer and health stocks were hit hard early in the
period by concerns over their exposure to economic weakness in the emerging
markets, particularly Brazil. Announcements of sales volume shortfalls by
Coca-Cola and Gillette late in the first quarter exacerbated these concerns, but
we have confidence that our exposure to these markets via the multinational
companies we hold will pay off in the long run. As a result, we are maintaining
our holdings in stocks such as Colgate-Palmolive, Estee Lauder, and Procter &
Gamble.
7 - Scudder Large Company Growth Fund
<PAGE>
Q: With valuations reaching increasingly high levels, how do you plan to manage
the portfolio in the months ahead?
A: We continue to adhere to the management style that has been in place for
nearly four years, and are relentless in our commitment to owning the best
large-cap growth stocks available. Recognizing that a number of stocks in the
sector are selling at lofty valuations, we are closely monitoring the expected
growth rates of our portfolio holdings. Since we do not sell our long-term
investments on the basis of valuation alone, we consider selling only when the
fundamentals underlying these valuations begin to deteriorate. In all market
conditions, we will continue to focus on the area where we believe we can add
the most value -- individual stock selection.
8 - Scudder Large Company Growth Fund
<PAGE>
Glossary of Investment Terms
BOTTOM-UP INVESTING STYLE An investment style that focuses on the use of
research to assess the performance of individual
companies before considering the impact of economic
trends. This approach, which is the opposite of
"top-down" investing, assumes that most significant
determinant of performance is individual stock
selection, rather than industry or country
allocation.
CONSUMER STAPLES Products purchased by consumers on a regular
basis, such as food, beverages, alcohol, and tobacco.
In the aggregate, sales of consumer staples tend to
be steady and less sensitive to economic
fluctuations.
GROWTH STOCK Stock of a company that has displayed above average
earnings growth and is expected to continue to
increase profits rapidly going forward. Stocks of
such companies usually trade at higher multiples to
earnings (see price/earnings ratio) and experience
more price volatility than the market as a whole.
Distinct from value stock.
PRICE/EARNINGS RATIO A widely used gauge of a stock's valuation that
(P/E) (also "earnings indicates what investors are paying for a company's
multiple") earning power at the current stock price. A P/E
ratio may be based on a company's projected earnings
for the coming 12 months. A higher "earnings
multiple" indicates higher expected earnings growth,
along with greater risk of earnings disappointment.
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 may carry higher
dividend yields. Distinct from growth stock.
WEIGHTING (OVER/UNDER) Refers to the allocation of assets -- usually in
terms of sectors, industries, or countries -- within
a portfolio relative to the portfolio's benchmark
index or investment universe.
(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, 1999 (Unaudited)
<TABLE>
<CAPTION>
Principal Market
Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Repurchase Agreements 3.8%
- -----------------------------------------------------------------------------------------------------------------------------
Repurchase Agreement with Donaldson, Lufkin, and Jennrette dated 4/30/1999,
4.87%, to be repurchased at $5,002,029 on 5/3/1999, collateralized by a
$5,056,000 U.S. Treasury Bond, 3.875%, 4/15/2029 (Cost $5,000,000) ............. 5,000,000 5,000,000
Repurchase Agreement with State Street Bank and Trust Company dated 4/30/1999,
4.87%, to be repurchased at $26,105,590 on 5/3/1999, collateralized by a
$25,010,000 U.S. Treasury Note, 6.5%, 5/31/2002 (Cost $26,095,000) ............. 26,095,000 26,095,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $31,095,000) ...................................... 31,095,000
- -----------------------------------------------------------------------------------------------------------------------------
Shares
- -----------------------------------------------------------------------------------------------------------------------------
Common Stocks 96.2%
- -----------------------------------------------------------------------------------------------------------------------------
Consumer Discretionary 13.9%
Department & Chain Stores 11.2%
Consolidated Stores Corp.* .......................................................... 437,000 15,021,875
Costco Companies, Inc.* ............................................................. 154,500 12,504,844
Dayton Hudson Corp. ................................................................. 294,600 19,830,263
Home Depot, Inc. .................................................................... 442,100 26,498,369
Wal-Mart Stores Inc. ................................................................ 414,600 19,071,600
----------
92,926,951
----------
Recreational Products 1.3%
Electronic Arts Inc.* ............................................................... 172,900 8,785,481
Hasbro, Inc. ........................................................................ 48,700 1,661,888
----------
10,447,369
Restaurants 1.4%
McDonald's Corp. .................................................................... 285,100 12,081,113
----------
Consumer Staples 10.5%
Alcohol & Tobacco 1.5%
Philip Morris Companies, Inc. ....................................................... 350,800 12,299,925
----------
Food & Beverage 3.3%
Coca-Cola Co., Inc. ................................................................. 259,700 17,659,600
Kroger Co.* ......................................................................... 185,200 10,058,675
----------
27,718,275
----------
Package Goods/Cosmetics 5.7%
Colgate-Palmolive Co. ............................................................... 168,500 17,260,719
Estee Lauder Companies "A" .......................................................... 140,000 14,017,500
Procter & Gamble Co. ................................................................ 172,600 16,192,038
----------
47,470,257
----------
</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 16.4%
Health Industry Services 0.8%
IMS Health Inc. ..................................................................... 216,900 6,507,000
----------
Medical Supply & Specialty 2.5%
Medtronic Inc. ...................................................................... 284,544 20,469,384
----------
Pharmaceuticals 13.1%
Eli Lilly & Co. ..................................................................... 178,498 13,141,915
Johnson & Johnson ................................................................... 105,400 10,276,500
Merck & Co., Inc. ................................................................... 295,800 20,779,950
Pfizer, Inc. ........................................................................ 250,700 28,846,169
Schering-Plough Corp. ............................................................... 232,500 11,232,656
SmithKline Beecham PLC (ADR) ........................................................ 175,400 11,521,588
Warner-Lambert Co. .................................................................. 193,200 13,125,525
-----------
108,924,303
-----------
Communications 3.1%
Telephone/Communications
Frontier Corp. ...................................................................... 163,400 9,017,638
MCI WorldCom, Inc.* ................................................................. 201,100 16,527,906
----------
25,545,544
----------
Financial 5.8%
Insurance 2.2%
American International Group, Inc. .................................................. 155,487 18,260,005
----------
Other Financial Companies 3.6%
Federal Home Loan Mortgage Corp. .................................................... 139,700 8,766,175
Federal National Mortgage Association ............................................... 169,200 12,002,625
Morgan Stanley, Dean Witter Discover Co. ............................................ 88,400 8,768,175
----------
29,536,975
----------
Media 7.8%
Advertising 3.1%
Omnicom Group, Inc. ................................................................. 217,100 15,739,750
Outdoor Systems, Inc.* .............................................................. 408,287 10,283,729
----------
26,023,479
----------
Broadcasting & Entertainment 4.7%
Clear Channel Communications, Inc.* ................................................. 269,700 18,744,150
Infinity Broadcasting Corp.* ........................................................ 282,100 7,810,644
Univision Communication Inc.* ....................................................... 208,800 12,084,300
----------
38,639,094
----------
</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>
Service Industries 4.6%
EDP Services 3.3%
America Online Inc.* ................................................................ 193,100 27,565,025
----------
Investment 1.3%
Charles Schwab Corp. ................................................................ 93,800 10,294,550
----------
Durables 10.1%
Telecommunications Equipment
Ascend Communications, Inc.* ........................................................ 134,800 13,025,050
Cisco Systems, Inc.* ................................................................ 299,625 34,175,977
Lucent Technologies Inc. ............................................................ 471,600 28,354,950
Nokia Corp. (ADR) ................................................................... 112,100 8,316,419
----------
83,872,396
----------
Manufacturing 7.2%
Diversified Manufacturing
General Electric Corp. .............................................................. 309,100 32,610,050
Textron, Inc. ....................................................................... 150,300 13,846,388
Tyco International Ltd. ............................................................. 163,100 13,251,875
----------
59,708,313
----------
Technology 16.8%
Computer Software 5.7%
Microsoft Corp.* .................................................................... 581,800 47,307,613
----------
Diverse Electronic Products 1.1%
Applied Materials, Inc.* ............................................................ 164,900 8,842,763
----------
EDP Peripherals 1.6%
EMC Corp.* .......................................................................... 122,400 13,333,950
----------
Electronic Data Processing 2.8%
Dell Computer Corp.* ................................................................ 179,000 7,372,563
Sun Microsystems, Inc.* ............................................................. 269,800 16,137,413
----------
23,509,976
----------
Semiconductors 5.6%
Intel Corp. ......................................................................... 566,600 34,668,830
Linear Technology Corp. ............................................................. 213,600 12,148,500
----------
46,817,330
- -----------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (Cost $536,504,965) ............................................. 798,101,590
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Total Investment Portfolio-- 100.0% (Cost $567,599,965) (a) ......................... 829,196,590
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
12 - Scudder Large Company Growth Fund
<PAGE>
* Non-income producing security.
(a) The cost for federal income tax purposes was $568,400,032. At April 30,
1999, net unrealized appreciation for all securities based on tax cost was
$260,796,558. This consisted of aggregate gross unrealized appreciation
for all securities in which there was an excess of market value over tax
cost of $264,451,732 and aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over market value of
$3,655,174.
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, 1999 (Unaudited)
<TABLE>
<CAPTION>
Assets
- -----------------------------------------------------------------------------------------------------------------------------
<S> ............................................................. <C>
Investments, at market (identified cost $567,599,965) ........... $ 829,196,590
Cash ............................................................ 996
Receivable for investments sold ................................. 3,796,027
Receivable for Fund shares sold ................................. 1,880,099
Dividends and interest receivable ............................... 216,234
Other assets .................................................... 77
------------
Total assets .................................................... 835,090,023
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased ............................... 3,390,118
Payable for Fund shares redeemed ................................ 792,014
Accrued management fee .......................................... 467,218
Other payables and accrued expenses ............................. 1,812
------------
Total liabilities ............................................... 4,651,162
---------------------------------------------------------------------------------
Net assets, at market value $ 830,438,861
---------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
Net assets consist of:
Accumulated net investment loss ................................. (888,304)
Unrealized appreciation (depreciation) on investments ........... 261,596,625
Accumulated net realized gain (loss) ............................ (4,204,850)
Paid-in capital ................................................. 573,935,390
---------------------------------------------------------------------------------
Net assets, at market value $ 830,438,861
---------------------------------------------------------------------------------
Net Asset Value
- -----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share
($830,438,861 /24,774,581 outstanding shares of
beneficial interest, $.01 par value, unlimited number --------
of shares authorized) ................................. $ 33.52
--------
</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, 1999 (Unaudited)
<TABLE>
<CAPTION>
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $9,333) ............ $ 2,072,904
Interest ....................................................... 769,745
-------------
2,842,649
Expenses:
Management fee ................................................. 2,389,015
Services to shareholders ....................................... 1,095,369
Custodian and accounting fees .................................. 60,783
Trustees' fees and expenses .................................... 20,260
Reports to shareholders ........................................ 51,082
Auditing ....................................................... 17,027
Legal .......................................................... 7,627
Registration fees .............................................. 59,167
Other .......................................................... 30,623
-------------
3,730,953
---------------------------------------------------------------------------------
Net investment income (loss) (888,304)
---------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investment transactions
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from investments ...................... (2,965,479)
Net unrealized appreciation (depreciation) on investments during
the period ..................................................... 138,734,974
---------------------------------------------------------------------------------
Net gain (loss) on investment transactions 135,769,495
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 134,881,191
---------------------------------------------------------------------------------
</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
1999 October 31,
Increase (Decrease) in Net Assets (Unaudited) 1998
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income (loss) ................................. $ (888,304) $ (213,021)
Net realized gain (loss) on investments ...................... (2,965,479) 31,321,568
Net unrealized appreciation (depreciation) on investments
during the period ......................................... 138,734,974 35,342,915
------------- -------------
Net increase (decrease) in net assets resulting from
operations................................................. 134,881,191 66,451,462
------------- -------------
Distributions to shareholders from:
Net realized gains from investment transactions .............. (32,236,783) (16,858,738)
------------- -------------
Fund share transactions:
Proceeds from shares sold .................................... 359,612,213 297,954,229
Net asset value of shares issued to shareholders in
reinvestment of distributions................................ 31,494,627 16,409,785
Cost of shares redeemed ...................................... (165,468,193) (149,865,907)
------------- -------------
Net increase (decrease) in net assets from Fund share
transactions............................................... 225,638,647 164,498,107
------------- -------------
Increase (decrease) in net assets ............................ 328,283,055 214,090,831
Net assets at beginning of period ............................ 502,155,806 288,064,975
Net assets at end of period (including accumulated net
investment loss of $890,319 for the six months ended April 30, ------------- -------------
1999) ...................................................... $ 830,438,861 $ 502,155,806
------------- -------------
Other Information
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Fund shares
Shares outstanding at beginning of period .................... 17,828,773 11,477,024
------------- -------------
Shares sold .................................................. 10,938,109 11,101,198
Shares issued to shareholders in reinvestment of distributions 989,465 667,879
Shares redeemed .............................................. (4,981,766) (5,417,328)
------------- -------------
Net increase (decrease) in Fund shares ....................... 6,945,808 6,351,749
------------- -------------
Shares outstanding at end of period .......................... 24,774,581 17,828,773
------------- -------------
</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
Ended April 30,
1999 (a) Years Ended October 31,
(Unaudited) 1998(a) 1997(a) 1996(a) 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------
Net asset value, beginning of period ..................... $ 28.17 $ 25.10 $ 21.19 $ 18.44 $ 16.17 $ 16.42
---------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) ............................. (.04) (.02) (.01) .08 .11 .16
Net realized and unrealized gain (loss)on investments .... 7.10 4.55 5.69 3.41 3.40 (.09)
---------------------------------------------------------------------------------
Total from investment operations ......................... 7.06 4.53 5.68 3.49 3.51 .07
---------------------------------------------------------------------------------
Less distributions from:
Net investment income .................................... -- -- -- (.14) (.15) (.08)
Net realized gains on investment transactions............. (1.71) (1.46) (1.77) (.60) (1.09) (.24)
---------------------------------------------------------------------------------
Total distributions ...................................... (1.71) (1.46) (1.77) (.74) (1.24) (.32)
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Net asset value, end of period ........................... $ 33.52 $ 28.17 $ 25.10 $ 21.19 $ 18.44 $ 16.17
- -------------------------------------------------- ---------------------------------------------------------------------------------
Total Return (%) ......................................... 25.43** 18.86 28.84 19.49 23.78 .39
Ratios and Supplemental Data
Net assets, end of period ($ millions) ................... 830 502 288 221 173 113
Ratio of operating expenses net, to average daily
net assets (%)......................................... 1.09* 1.19 1.21 1.07 1.17 1.25
Ratio of net investment income (loss) to average daily
net assets (%).......................................... (.26)* (.06) (.05) .41 .71 .96
Portfolio turnover rate (%) .............................. 52.4* 54.1 67.9 68.8 91.6 119.7
(a) Based on monthly average shares outstanding during the period
* Annualized
** Not annualized
</TABLE>
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 is equal to at least 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, 1999, purchases and sales of investment
securities (excluding short-term investments) aggregated $349,053,167 and
$169,977,382, respectively.
C. Related Parties
Under the Investment Management Agreement (the "Management Agreement") with
Scudder Kemper Investments, Inc. ("Scudder Kemper" or the "Adviser"), 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, 1999, the fee pursuant to these agreements amounted to $2,389,015, of
which $467,218 was unpaid at April 30, 1999.
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, 1999, the amount charged to the Fund by SSC
aggregated $522,594, of which $116,893 was unpaid at April 30, 1999.
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 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, 1999, the Special
Servicing Agreement expense charged to the Fund amounted to $166,926.
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,
1999, the amount charged to the Fund by STC aggregated $367,366, of which
$80,771 was unpaid at April 30, 1999.
19 - Scudder Large Company Growth Fund
<PAGE>
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, 1999, the amount charged to the Fund by SFAC aggregated $48,809,
of which $18,126 was unpaid at April 30, 1999.
The Trust pays each of its Trustees not affiliated with the Adviser an annual
retainer plus specified amounts for attended board and committee meetings. For
the six months ended April 30, 1999, Trustees fees and expenses aggregated
$20,260.
D. Line of Credit
The Fund and several 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 among each of the Participants. Interest is calculated based
on the market rates at the time of the borrowing. The Fund may borrow up to a
maximum of 33 percent of its net assets under the agreement.
20 - Scudder Large Company Growth Fund
<PAGE>
Shareholder Meeting Results
A Special Meeting of Shareholders (the "Meeting") of Scudder Large Company
Growth Fund (the "Fund") was held on December 15, 1998, at the office of Scudder
Kemper Investments, Inc., Two International Place, Boston, Massachusetts 02110.
At the Meeting the following matters were voted upon by the shareholders (the
resulting votes for each matter are presented below).
1. To approve a new Investment Management Agreement for the Fund with Scudder
Kemper Investments, Inc.
<TABLE>
<CAPTION>
Number of Votes:
----------------
<S> <C> <C> <C>
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
9,104,861 189,478 287,844 0
2. To approve the revision of the Fund's fundamental lending policy.
Number of Votes:
----------------
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
8,195,998 297,531 403,373 685,281
</TABLE>
- --------------------------------------------------------------------------------
* Broker non-votes are proxies received by the Fund from brokers or nominees
when the broker or nominee neither has received instructions from the
beneficial owner or other persons entitled to vote nor has discretionary
power to vote on a particular matter.
21 - Scudder Large Company Growth Fund
<PAGE>
This Page
intentionally
left blank.
22 - Scudder Large Company Growth Fund
<PAGE>
This Page
intentionally
left blank.
23 - Scudder Large Company Growth Fund
<PAGE>
Officers and Trustees
Daniel Pierce*
President and Trustee
Henry P. Becton, Jr.
Trustee; President and General
Manager, WGBH Educational
Foundation
Dawn-Marie Driscoll
Trustee; Executive Fellow, Center
for Business Ethics, Bentley
College; President, Driscoll
Associates
Peter B. Freeman
Trustee; Corporate Director and
Trustee
George M. Lovejoy, Jr.
Trustee; President and Director,
Fifty Associates
Wesley W. Marple, Jr.
Trustee; Professor of Business
Administration, Northeastern
University
Kathryn L. Quirk*
Trustee, Vice President and
Assistant Secretary
Jean C. Tempel
Trustee; Venture Partner,
Venture Capital Group
Bruce F. Beaty*
Vice President
Jennifer P. Carter*
Vice President
Philip S. Fortuna*
Vice President
William F. Gadsden*
Vice President
Robert T. Hoffman*
Vice President
Thomas W. Joseph*
Vice President
Valerie F. Malter*
Vice President
Ann M. McCreary*
Vice President
John Millette*
Vice President and Secretary
John R. Hebble*
Treasurer
Caroline Pearson*
Assistant Secretary
*Scudder Kemper Investments, Inc.
24 - 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 --
Prime Reserve Shares*
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 GNMA Fund
Scudder Income Fund
Scudder Corporate Bond 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 Dividend & Growth Fund
Scudder Growth and Income Fund
Scudder Select 500 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 Select 1000 Growth Fund
Scudder Development Fund
Scudder 21st Century Growth Fund
Global Equity
- -------------
Worldwide
Scudder Global Fund
Scudder International Value Fund
Scudder International Growth and Income Fund
Scudder International Fund++
Scudder International Growth 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
Preferred Series
- ----------------
Scudder Tax Managed Growth Fund
Scudder Tax Managed Small
Company Fund
Retirement Programs and Education Accounts
- --------------------------------------------------------------------------------
Retirement Programs
- -------------------
Traditional IRA
Roth IRA
SEP IRA
Keogh Plan
401(k), 403(b) Plans
Variable Annuities
Scudder Horizon Plan**+++ +++
Scudder Horizon Advantage**+++ +++ +++
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.
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.
25 - 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 -- www.scudder.com
1-800-343-2890
Personal Investment Organizer: 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
- ------------------------------------------------------------------------------------------------------------------------------
26 - 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
800 no-load funds from well-known companies--with no
transaction fees or commissions. Scudder
shareholders can take advantage of a Scudder
Brokerage account already reserved for them, with
no minimum investment. For information about
Scudder Brokerage Services, call 1-800-700-0820.
Fund Folio funds held less than six months will be charged a transaction fee. 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.
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>
27 - 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 $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
