SCUDDER
INVESTMENTS(SM)
[LOGO]
Scudder Large Company Growth Fund
Supplement to Prospectus of October 1, 2000
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Scudder Large Company Growth Fund currently offers three classes of shares to
provide investors with different purchase options: Class AARP shares, Class S
shares and Class R shares. Class AARP shares and Class S shares are described in
the prospectus; Class R shares are described in this supplement. Effective on or
about December 29, 2000, the Class R shares will be renamed Class A shares.
Class A shares will be sold subject to an initial sales charge or, in certain
instances, a contingent deferred sales charge and will be made available to a
broader group of investors. The investors currently permitted to purchase Class
R shares will not be subject to the sales charge of the Class A shares.
Class R shares are designed for participants of certain employer-sponsored
retirement plans. Class R shares currently are also available for purchase
through certain financial intermediaries as well as third-party providers and
other entities. Share certificates are not available for Class R shares.
The following information supplements each section of the prospectus as
indicated:
The Fund's Track Record
As Class R shares do not have a full calendar year of performance, no past
performance data is provided. However, the chart and table on page 8 of the
prospectus show how the returns for the fund's Class S shares have varied from
year to year, which may give some idea of risk. Although Class S shares are not
offered in this supplement, their annual returns would differ only to the extent
that the classes have different expenses.
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How Much Investors Pay
This fund has no sales charges or other shareholder fees. The fund does have
annual operating expenses, and as a shareholder you pay them indirectly.
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Fee Table
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Shareholder Fees (paid directly from your investment) None
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Annual Operating Expenses (deducted from fund assets)
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Management Fee 0.70%
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Service (12b-1) Fee* 0.25%
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Other Expenses** 0.33%
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Total Annual Operating Expenses*** 1.28%
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* Payment for administrative services.
** Includes a fixed rate administrative fee of 0.33%.
*** Scudder Kemper has agreed to cap operating expenses of the class at
1.25% until 4/1/2001.
The fees and expenses for Class R shares of the fund are being restated to
reflect the implementation of the 0.33% fixed rate administrative fee which is
expected to become effective on or about December 29, 2000.
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Expense Example
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Based on the costs above, this example helps you compare the expenses of the
fund's Class R shares to those of other mutual funds. The example assumes the
expenses above remain the same. It also assumes that you invested $10,000,
earned 5% annual returns, reinvested all dividends and distributions and sold
your shares at the end of each period. This is only an example; your actual
expenses will be different.
1 Year 3 Years 5 Years 10 Years
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$130 $406 $702 $1,545
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Understanding Distributions and Taxes
Dividends and other distributions that total $10 or less are automatically
reinvested in shares of the same fund unless you request otherwise.
Financial Highlights
Scudder Large Company Growth Fund -- Class R Shares
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2000(b)
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Net asset value, beginning of period $33.27
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Income (loss) from investment operations:
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Net investment income (loss) (a) (.29)
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Net realized and unrealized gain (loss) on investment transactions 9.98
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Total from investment operations 9.69
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Less distributions from:
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Net investment income --
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Net realized gains on investment transactions (.59)
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Total distributions (.59)
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Net asset value, end of period $42.37
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Total Return (%) 29.22**
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Ratios to Average Net Assets and Supplemental Data
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Net assets, end of period ($ millions) 58
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Ratio of expenses before expense reductions (%) 1.43(c)*
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Ratio of expenses after expense reductions (%) 1.42(c)*
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Ratio of net investment income (loss) (%) (.74)*
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Portfolio turnover rate (%) 56*
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(a) Based on monthly average shares outstanding during the period.
(b) For the period August 2, 1999 (commencement of Class R shares) to July
31, 2000.
(c) The ratios of operating expenses excluding costs incurred in connection
with the reorganization before and after expense reductions were 1.37%
and 1.37%, respectively.
* Annualized
** Not annualized
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How to Buy Shares
To open an account
Class R shares are available only through employer-sponsored retirement plans.
Please consult your plan administrator or plan representative for more
information on how to purchase shares.
To buy additional shares
Please consult your plan administrator or plan representative for more
information on how to purchase shares.
How to Exchange or Sell Shares
To exchange shares
Shareholders of Class R shares may exchange their Class R shares only for shares
of funds authorized for exchange by their plan. Please consult your plan
administrator or plan representative for more information. To sell shares Please
consult your plan administrator or plan representative for information.
December 18, 2000
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