-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ws8swysR0Tca/BgvijY4wMOAPfANFC7WpsfFQJcqrKi5TVAZfVmeu3gTyVWR/Q7k 5EavBJMbLtZUlHNGx9TIeA== 0000935069-04-001357.txt : 20040901 0000935069-04-001357.hdr.sgml : 20040901 20040901153323 ACCESSION NUMBER: 0000935069-04-001357 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040630 FILED AS OF DATE: 20040901 DATE AS OF CHANGE: 20040901 EFFECTIVENESS DATE: 20040901 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCUDDER INVESTMENTS VIT FUNDS CENTRAL INDEX KEY: 0001006373 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-07507 FILM NUMBER: 041011138 BUSINESS ADDRESS: STREET 1: SCUDDER INVESTMENTS VIT FUNDS STREET 2: TWO INTERNATIONAL PLACE CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6175350532 MAIL ADDRESS: STREET 1: ONE SOUTH STREET STREET 2: XX CITY: BALTIMORE STATE: MD ZIP: 21202 FORMER COMPANY: FORMER CONFORMED NAME: DEUTSCHE ASSET MANAGEMENT VIT FUNDS DATE OF NAME CHANGE: 20010402 FORMER COMPANY: FORMER CONFORMED NAME: BT INSURANCE FUNDS TRUST /MA/ DATE OF NAME CHANGE: 20000515 N-CSRS 1 smc.txt SCUDDER SMALL CAP - SEMI 6-31-04 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-07507 --------- Scudder Investments VIT Funds --------------------------------- (Exact name of registrant as specified in charter) Two International Place Boston, MA 02110-4103 --------------------------------- (Address of principal executive offices) (Zip code) Daniel O. Hirsch Deutsche Asset Management One South Street Baltimore, MD 21202 --------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 617-535-0532 ------------ Date of fiscal year end: December 31, 2004 ----------------- Date of reporting period: June 30, 2004 ------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. The Report to Shareholders is attached herewith. [LOGO OMITTED] SCUDDER INVESTMENTS Scudder VIT Small Cap Index Fund SEMIANNUAL REPORT June 30, 2004 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- TABLE OF CONTENTS LETTER TO SHAREHOLDERS ...................................... 3 PERFORMANCE COMPARISON ...................................... 6 SCUDDER VIT SMALL CAP INDEX FUND Schedule of Investments .................................. 7 Statement of Assets and Liabilities ...................... 27 Statement of Operations .................................. 28 Statements of Changes in Net Assets ...................... 29 Financial Highlights ..................................... 30 Notes to Financial Statements ............................ 32 Proxy Voting ............................................. 36 ------------------------------- THIS REPORT MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS. TO OBTAIN A PROSPECTUS, CALL YOUR FINANCIAL REPRESENTATIVE. WE ADVISE YOU TO CONSIDER THE FUND'S OBJECTIVES, RISKS, CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER IMPORTANT INFORMATION ABOUT THE FUND. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST. The Fund is not insured by the FDIC and is not a deposit, obligation of or guaranteed by Deutsche Bank AG. The Fund is subject to investment risks, including possible loss of principal amount invested. There is no guarantee that the Fund will be able to mirror the Russell 2000(R) Index closely enough to track its performance. Investments in small companies generally carry greater risk than is associated with large companies, such as narrower markets, limited financial resources and less liquid stock. ------------------------------- - -------------------------------------------------------------------------------- 2 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- LETTER TO SHAREHOLDERS ALL PERFORMANCE IN THIS REPORT IS HISTORICAL AND IS NO GUARANTEE OF FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE FLUCTUATE WITH CHANGING MARKETING CONDITIONS, SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE RETURN FIGURES QUOTED. FOR THE FUND'S MOST RECENT MONTH-END PERFORMANCE, CALL 1-800-621-1048. PERFORMANCE QUOTED FOR THE FUND DOES NOT INCLUDE THE EFFECT OF CONTRACT CHARGES, WHICH WOULD LOWER THE RETURNS PRESENTED. RETURNS ARE NET OF THE FUND'S MANAGEMENT FEES AND OTHER OPERATING EXPENSES. RETURNS WOULD HAVE BEEN LOWER IF CERTAIN OF THE FUND'S FEES AND EXPENSES HAD NOT BEEN WAIVED. This Fund is designed to serve as an investment option for certain variable annuity contracts, variable life insurance policies and tax-qualified plans. Variable annuities are long-term, tax-deferred contracts designed for retirement purposes, asset accumulation, distribution and transference. Contract value will fluctuate based on the performance of your subaccount selection. Earnings from variable annuity investments compound tax free until withdrawal, so no adjustments are made for income taxes. In the following interview, the portfolio management team discusses Scudder VIT Small Cap Index Fund's market environment and performance during the six-month period ended June 30, 2004. Q: HOW DID SCUDDER VIT SMALL CAP INDEX FUND PERFORM DURING THE FIRST HALF OF 2004? A: Scudder VIT Small Cap Index Fund posted a 6.60% return (Class A shares), slightly underperforming the 6.76% return of its benchmark, the Russell 2000(R) Index, 1 for the six months ended June 30, 2004. The broad-based Russell 2000(R) Index is a group of smaller-company stocks that is not available for direct investment. (Please see pages 4 and 6 for the performance of Class B shares and more complete performance information). Q: WHAT WERE THE PRIMARY FACTORS AFFECTING THE US EQUITY MARKETS DURING THE PAST SIX MONTHS? A: Following an 18-month rally in growth stocks, led by technology and semiconductor issues, equity markets traded 'sideways' for much of the first half of 2004, remaining within a 5% trading range. Though the conflict in Iraq continued, there were no significant turns in the market as a response to events in Iraq. Following the transfer of Iraqi sovereignty from the United States to Iraq in June, there was a slight upward movement in stocks, which did not hold. Elsewhere, the late-June federal funds rate increase of one-quarter of a percentage point was well-anticipated. Again, the market edged up on this news and then immediately sold off. Investors remain risk-wary and prone to quick sell-offs following gains. On a more positive note, late April marked one of the most favorable earnings seasons in the last five years. After a succession of positive earnings announcements, the market rallied off of its six-month lows, but it gave back those gains at the end of April and in early May. In 2003 and through early 2004, investors favored high-beta growth stocks with relatively high price-to-earnings ratios. Then in March, many investors began to switch over to value-oriented stocks as they pursued more-defensive strategies. For the six-month period, the value portion of the Russell 2000(R) Index outgained the growth portion by 2.15%. Now that many companies have made renewed investments in technology during 2003 and 2004, the markets are waiting for these high-tech investments to bear fruit in the form of increased earnings for more value-oriented companies. - -------------------------------------------------------------------------------- 1 Russell 2000(R) is a trademark of the Frank Russell Company and has been licensed for use by the Fund's investment advisor. The Russell 2000(R) Index is an unmanaged index that tracks the common stock price movement of approximately 2,000 of the smallest companies of the Russell 3000(R) Index, which measures the performance of the 3,000 largest US companies based on market capitalization. Index returns assume reinvestment of all distributions and, unlike portfolio returns, do not reflect fees or expenses. It is not possible to invest directly in an index. Index returns assume reinvestment of dividends and capital gains and, unlike fund returns, do not reflect fees and expenses. A direct investment in an index is not possible. - -------------------------------------------------------------------------------- 3 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- LETTER TO SHAREHOLDERS Small cap stocks continued last year's trend as the Russell 2000(R) Index outperformed the Standard &Poor's 500 Index (the 'S&P 500 Index')1 by 3.32% during the first half of this year. Q: WHICH SECTORS WITHIN THE RUSSELL 2000(R)INDEX WERE THE BEST AND WORST PERFORMERS? A: The energy sector posted the strongest performance for the six-month period, going hand in hand with recent and significant increases in oil prices. Consumer discretionary was the second-best performing sector. Technology was the worst-performing sector, declining 5% over the first half of 2004. - -------------------------------------------------------------------------------- SECTOR ALLOCATION As of June 30, 2004 (percentages are based on market value* of total investments in the Fund) A Fund's sector allocation is subject to change. - -------------------------------------------------------------------------------- Financial Services ......................... 20.47% Information Technology ..................... 18.24 Consumer Discretionary ..................... 15.12 Industrials ................................ 14.22 Health Care ................................ 12.27 Materials .................................. 5.34 Energy ..................................... 4.41 Utilities .................................. 3.04 Consumer Staples ........................... 2.54 Other ...................................... 4.35 ------ 100.00% ====== *Excluding Cash Equivalents. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1 The Standard & Poor's Index (S&P 500) is an unmanaged group of stocks generally representative of the US stock market.
INVESTMENT REVIEW - -------------------------------------------------------------------------------------------------------------------------- CUMULATIVE TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS Periods Ended 6 Months 1 Year 3 Years 5 Years Since 1 Year 3 Years 5 Years Since June 30, 2004 Inception 2 Inception 2 Class A (inception 8-22-97) Class B (inception 4-30-02) - -------------------------------------------------------------------------------------------------------------------------- Scudder VIT Small Cap Index Fund Class A 6.60% 32.87% 19.02% 35.51% 50.25% 32.87% 5.98% 6.27% 6.12% Class B 6.42% 32.54% n/a n/a 17.74% 32.54% n/a n/a 7.82% - -------------------------------------------------------------------------------------------------------------------------- Russell 2000(R)Index 3 6.76% 33.37% 19.90% 37.86% 52.29% 33.37% 6.24% 6.63% 6.35% - -------------------------------------------------------------------------------------------------------------------------- Lipper Small Cap Core Funds Average 4 7.14% 33.47% 26.76% 65.54% 70.53% 33.47% 7.99% 10.22% 7.80% - --------------------------------------------------------------------------------------------------------------------------
ALL PERFORMANCE IN THIS REPORT IS HISTORICAL AND IS NO GUARANTEE OF FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE FLUCTUATE WITH CHANGING MARKETING CONDITIONS, SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE RETURN FIGURES QUOTED. FOR THE FUND'S MOST RECENT MONTH-END PERFORMANCE, CALL 1-800-621-1048. PERFORMANCE QUOTED FOR THE FUND DOES NOT INCLUDE THE EFFECT OF CONTRACT CHARGES, WHICH WOULD LOWER THE RETURNS PRESENTED. RETURNS ARE NET OF THE FUND'S MANAGEMENT FEES AND OTHER OPERATING EXPENSES. RETURNS WOULD HAVE BEEN LOWER IF CERTAIN OF THE FUND'S FEES AND EXPENSES HAD NOT BEEN WAIVED. PERFORMANCE FIGURES FOR CLASSES A AND B DIFFER BECAUSE EACH CLASS MAINTAINS A DISTINCT EXPENSE STRUCTURE. TOTAL RETURN IS BASED ON NET CHANGE IN NET ASSET VALUE, ASSUMING THE REINVESTMENT OF ALL DISTRIBUTIONS. - -------------------------------------------------------------------------------- 2 The Fund's inception dates are: Class A Shares: August 22, 1997, Class B Shares: April 30, 2002. Benchmark returns are for comparative purposes relative to Class A Shares and are for the period beginning August 31, 1997 for the Russell 2000(R) Index and the Lipper Small CapCore Funds Average. 3 'Russell 2000(R)' is a trademark of the Frank Russell Company and has been licensed for use by the Fund's investment advisor. The Russell 2000(R) Index is an unmanaged index that tracks the common stock price movement of approximately the 2,000 smallest companies in the Russell 3000(R) Index, which measures the performance of the 3,000 largest US companies based on total market capitalization. 4 The Lipper Small Cap Core Funds Average tracks funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) of less than 250% of the dollar-weighted median market capitalization of the S&P Small-Cap 600 Index. Small Cap Core funds have wide latitude in the companies in which they invest. These funds will normally have an average price-to-earnings ratio, price-to-book ratio, and three-year earnings growth figure, compared to the US diversified small-cap funds universe average. Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper Inc. as falling into the category indicated. Index returns assume reinvestment of dividends and capital gains and, unlike fund returns, do not reflect fees and expenses. A direct investment in an index is not possible. - -------------------------------------------------------------------------------- 4 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- LETTER TO SHAREHOLDERS For the annual Russell 2000(R) Index's reconstitution on June 25, the index experienced approximately 16% turnover. The largest addition to the index was Park National Corp., which migrated down from the Russell 1000, while the largest pure addition was American Financial Realty Trust, a real estate investment trust that made its initial public offering in June 2003. The largest deletion was Andrew Corp., which moved from the Russell 2000(R) Index to the Russell 1000(R) Index. - -------------------------------------------------------------------------------- TEN LARGEST STOCK HOLDINGS As of June 30, 2004 (percentages are based on total net assets of the Fund) A Fund's holdings are subject to change. - -------------------------------------------------------------------------------- Techne Corp. .................................. 0.17% Tersoro Petroleum Corp. ....................... 0.17 Calpine Corp. ................................. 0.17 Toro Co. ...................................... 0.17 Energen Corp. ................................. 0.16 Cytec Industries, Inc. ........................ 0.16 Crown Holdings, Inc. .......................... 0.16 IDEX Corp. .................................... 0.16 Hyperion Solutions Corp. ...................... 0.16 Pediatrix Medical Group, Inc. ................. 0.16 Information concerning portfolio holdings of the Fund as of a month end is available upon request on the 16th of the following month. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGERS ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME, BASED ON MARKET AND OTHER CONDITIONS AND SHOULD NOT BE CONSTRUED AS A RECOMMENDATION. - -------------------------------------------------------------------------------- 5 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- PERFORMANCE COMPARISON Scudder VIT Small Cap Index Fund--Class A Shares and Russell 2000(R)Index Growth of a $10,000 Investment (Since Inception) [GRAPHIC OMITTED] PLOT POINTS FOLLOW: Scudder VIT Small Cap Index Russell 2000 Index 8/22/97 $10,000 $10,000 8/31/97 10,160 10,000 9/30/97 10,870 10,732 10/31/97 10,430 10,261 11/30/97 10,350 10,194 12/31/97 10,510 10,373 1/31/98 10,320 10,209 2/28/98 11,070 10,963 3/31/98 11,510 11,415 4/30/98 11,540 11,478 5/31/98 10,940 10,859 6/30/98 10,960 10,882 7/31/98 10,110 10,000 8/31/98 8,190 8,058 9/30/98 8,830 8,689 10/31/98 9,210 9,044 11/30/98 9,690 9,518 12/31/98 10,281 10,107 1/31/99 10,383 10,241 2/28/99 9,545 9,412 3/31/99 9,678 9,558 4/30/99 10,516 10,415 5/31/99 10,679 10,567 6/30/99 11,088 11,045 7/31/99 10,853 10,742 8/31/99 10,475 10,345 9/30/99 10,444 10,347 10/31/99 10,495 10,389 11/30/99 11,119 11,009 12/31/99 12,354 12,255 1/31/00 12,141 12,058 2/29/00 14,099 14,049 3/31/00 13,184 13,123 4/30/00 12,375 12,333 5/31/00 11,641 11,614 6/30/00 12,641 12,627 7/31/00 12,226 12,220 8/31/00 13,152 13,153 9/30/00 12,769 12,766 10/31/00 12,194 12,197 11/30/00 10,949 10,944 12/31/00 11,876 11,884 1/31/01 12,464 12,503 2/28/01 11,651 11,683 3/31/01 11,073 11,112 4/30/01 11,929 11,981 5/31/01 12,218 12,275 6/30/01 12,624 12,699 7/31/01 11,983 12,012 8/31/01 11,587 11,624 9/30/01 10,025 10,059 10/31/01 10,592 10,648 11/30/01 11,416 11,472 12/31/01 12,121 12,180 1/31/02 11,986 12,053 2/28/02 11,658 11,723 3/31/02 12,585 12,665 4/30/02 12,686 12,781 5/31/02 12,133 12,213 6/30/02 11,523 11,607 7/31/02 9,794 9,855 8/31/02 9,772 9,830 9/30/02 9,060 9,124 10/31/02 9,354 9,417 11/30/02 10,178 10,257 12/31/02 9,627 9,686 1/31/03 9,353 9,418 2/28/03 9,068 9,133 3/31/03 9,182 9,251 4/30/03 10,053 10,128 5/31/03 11,090 11,215 6/30/03 11,309 11,418 7/31/03 12,011 12,132 8/30/03 12,552 12,688 9/30/03 12,322 12,453 10/31/03 13,347 13,499 11/30/03 13,808 13,979 12/31/03 14,096 14,262 1/31/04 14,694 14,881 2/28/04 14,821 15,015 3/31/04 14,959 15,155 4/30/04 14,193 14,382 5/31/04 14,412 14,611 6/30/04 15,025 15,229 Not depicted in graph: growth of $10,000 for B Shares from inception through June 30, 2004:$11,774. - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS Since Inception Periods Ended 1 Year 3 Years 5 Years Class A June 30, 2004 8-22-97 - -------------------------------------------------------------------------------- Scudder VIT Small Cap Index Fund-- Class A Shares 32.87% 5.98% 6.27% 6.12% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS Since Inception Periods Ended 1 Year Class B June 30, 2004 4-30-02 - -------------------------------------------------------------------------------- Scudder VIT Small Cap Index Fund--Class B Shares 32.54% 7.82% - -------------------------------------------------------------------------------- ALL PERFORMANCE IN THIS REPORT IS HISTORICAL AND IS NO GUARANTEE OF FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE FLUCTUATE WITH CHANGING MARKETING CONDITIONS, SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE RETURN FIGURES QUOTED. FOR THE FUND'S MOST RECENT MONTH-END PERFORMANCE, CALL 1-800-621-1048. PERFORMANCE QUOTED FOR THE FUND DOES NOT INCLUDE THE EFFECT OF CONTRACT CHARGES, WHICH WOULD LOWER THE RETURNS PRESENTED. RETURNS ARE NET OF THE FUND'S MANAGEMENT FEES AND OTHER OPERATING EXPENSES. RETURNS WOULD HAVE BEEN LOWER IF CERTAIN OF THE FUND'S FEES AND EXPENSES HAD NOT BEEN WAIVED. PERFORMANCE FIGURES FOR CLASSES A AND B DIFFER BECAUSE EACH CLASS MAINTAINS A DISTINCT EXPENSE STRUCTURE. TOTAL RETURN IS BASED ON NET CHANGE IN NET ASSET VALUE, ASSUMING THE REINVESTMENT OF ALL DISTRIBUTIONS. - -------------------------------------------------------------------------------- 1 The Russell 2000(R) Index is an unmanaged index that tracks the common stock price movement of the 2,000 smallest companies in the Russell 3000(R) Index, which measures the performance of the 3,000 largest US companies based on total market capitalization. Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect any fees or expenses. A direct investment in an index is not possible. - -------------------------------------------------------------------------------- 6 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ COMMON STOCKS--97.92% 2,100 1-800 Contacts, Inc. 1 ............... $ 31,153 9,500 1-800-FLOWERS.COM, Inc. 1 ............ 77,330 7,000 21st Century Insurance Group ......... 90,580 10,700 24/7 Real Media, Inc. 1 .............. 60,027 6,100 4Kids Entertainment, Inc. 1 .......... 145,912 17,700 99 Cents Only Stores 1 ............... 269,925 6,000 A.C. Moore Arts & Crafts, Inc. 1 ..... 165,060 6,560 A.O. Smith Corp. ..................... 208,542 3,600 A.S.V., Inc. 1 ....................... 112,716 3,500 Aaon, Inc. 1 ......................... 70,665 14,150 AAR Corp. 1 .......................... 160,602 9,100 Aaron Rents, Inc. .................... 301,574 6,000 Abaxis, Inc. 1 ....................... 113,880 3,800 ABC Bancorp .......................... 77,292 30,300 Abgenix, Inc. 1 ...................... 355,116 4,900 Abiomed, Inc. 1 ...................... 61,642 7,600 Able Laboratories, Inc. 1 ............ 156,256 14,000 ABM Industries, Inc. ................. 272,580 10,700 Acadia Realty Trust, REIT ............ 147,018 11,000 Accelrys, Inc. 1 ..................... 108,460 6,700 Accredited Home Lenders Holding Co. 1 ....................... 188,605 4,000 ACE Cash Express, Inc. 1 ............. 102,760 7,200 Aceto Corp. .......................... 126,720 10,468 Actel Corp. 1 ........................ 193,658 5,800 Action Performance Cos., Inc. ........ 87,406 17,900 ActivCard Corp. 1 .................... 129,954 8,500 Actuant Corp. 1 ...................... 331,415 16,600 Actuate Corp. 1 ...................... 65,570 17,431 Acuity Brands, Inc. .................. 470,637 42,400 Adaptec, Inc. 1 ...................... 358,704 3,000 ADE Corp. 1 .......................... 64,830 7,700 Administaff, Inc. 1 .................. 127,820 14,700 Adolor Corp. 1 ....................... 186,396 24,022 Advanced Digital Information Corp. 1 . 233,013 7,806 Advanced Energy Industries 1 ......... 122,710 5,750 Advanced Marketing Services .......... 74,232 11,000 Advanced Medical Optics, Inc. 1 ...... 468,270 7,500 Advanced Neuromodulation Systems, Inc. 1 ..................... 246,000 9,100 Advanta Corp.--Class B ............... 208,572 10,400 Advent Software, Inc. 1 .............. 187,928 6,200 Advisory Board Co. (The) 1 ........... 220,720 11,650 ADVO, Inc. ........................... 383,518 24,650 Aeroflex, Inc. 1 ..................... 353,234 20,700 Aeropostale, Inc. 1 .................. 557,037 9,100 Affiliated Managers Group, Inc. 1 .... 458,367 8,100 Affordable Residential Communities, REIT ................................ 134,460 5,500 Aftermarket Technology Corp. 1 ....... 90,750 21,500 Agile Software Corp. 1 ............... 188,125 SHARES SECURITY VALUE - ------------------------------------------------------------------ 11,768 Agilysys, Inc. ....................... $ 162,281 1,300 AgriBioTech, Inc. 1 .................. -- 22,000 Airgas, Inc. ......................... 526,020 5,000 AirGate PCS, Inc. 1 .................. 91,500 10,100 Airspan Networks, Inc. 1 ............. 55,954 31,300 Airtran Holdings, Inc. 1 ............. 442,582 42,500 AK Steel Holding Corp. 1 ............. 223,975 5,500 Aksys Ltd. 1,2 ....................... 32,065 5,600 Alabama National Bancorp ............. 310,632 25,300 Alamosa Holdings, Inc. 1 ............. 185,955 9,900 Alaska Air Group, Inc. 1 ............. 236,313 10,352 Albany International Corp.--Class A .. 347,413 10,800 Albany Molecular Research, Inc. 1 .... 139,644 13,100 Albemarle Corp. ...................... 414,615 17,000 Alderwoods Group, Inc. 1 ............. 207,400 17,507 Alexander & Baldwin, Inc. ............ 585,609 800 Alexander's, Inc. 1 .................. 134,192 7,700 Alexandria Real Estate Equities, Inc. 437,206 9,035 Alexion Pharmaceuticals, Inc. 1 ...... 168,051 13,200 Alfa Corp. ........................... 184,800 1,400 Alico, Inc. .......................... 56,210 19,200 Align Technology, Inc. 1 ............. 364,800 33,400 Alkermes, Inc. 1 ..................... 454,240 31,500 Allegheny Technologies, Inc. ......... 568,575 19,200 Alliance Gaming Corp. 1 .............. 329,472 1,700 Alliance Imaging, Inc. 1 ............. 7,769 9,319 Alliance Semiconductor Corp. 1 ....... 55,448 16,100 Alloy, Inc. 1 ........................ 99,015 11,700 Allscripts Healthcare Solution, Inc. 1 91,728 14,690 Alpharma, Inc.--Class A .............. 300,851 7,500 Altiris, Inc. 1 ...................... 207,075 2,300 Ambassadors Group, Inc. .............. 54,073 12,200 AMC Entertainment, Inc. 1 ............ 187,514 7,950 Amcol International Corp. ............ 150,652 9,413 Amcore Financial, Inc. ............... 283,896 4,500 Amedisys, Inc. 1 ..................... 148,680 2,900 AMERCO 1 ............................. 68,875 3,200 America Service Group, Inc. 1 ........ 111,200 13,100 America West Holdings Corp.-- ........ Class B 1,2 ......................... 118,948 2,600 America's Car-Mart, Inc. 1 ........... 78,078 5,700 American Equity Investment Life Holding Co.1 ................... 56,715 40,100 American Financial Realty Trust, REIT 573,029 23,700 American Greetings Corp.--Class A 1 .. 549,366 11,300 American Healthways, Inc. 1 .......... 300,806 12,435 American Home Mortgage Investment Corp., REIT .............. 322,440 5,360 American Italian Pasta Co.--Class A 2 163,373 5,400 American Medical Security Group, Inc. 1 ....................... 147,150 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 7 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 9,200 American Medical Systems Holdings, Inc. 1 .................... $ 310,040 4,300 American Physicians Capital, Inc. 1 .. 99,545 4,400 American States Water Co. ............ 102,256 8,500 American Superconductor Corp. 1 ...... 111,180 1,400 American Vanguard Corp. .............. 47,222 2,400 American Woodmark Corp. .............. 143,640 2,390 AmericanWest Bancorp. 1 .............. 45,768 9,200 AMERIGROUP Corp. 1 ................... 452,640 5,100 Ameristar Casinos, Inc. .............. 171,258 3,100 Ameron International, Inc. ........... 105,803 14,700 AmerUs Group Co. ..................... 608,580 10,900 AMIS Holdings, Inc. 1 ................ 184,428 9,200 AMLI Residential Properties Trust .... 269,928 6,200 AMN Healthcare Services, Inc. 1 ...... 94,798 12,300 Amsurg Corp.--Class A 1 .............. 309,099 4,100 Analogic Corp. ....................... 173,963 9,270 Anaren, Inc. 1 ....................... 151,472 8,400 Anchor Bancorp Wisconsin, Inc. ....... 222,096 4,400 Angelica Corp. ....................... 110,484 2,700 Animas Corp. 1 ....................... 50,355 11,100 Anixter International, Inc. .......... 377,733 2,500 Ansoft Corp. 1 ....................... 38,150 15,400 Answerthink, Inc. 1 .................. 88,242 5,800 ANSYS, Inc. 1 ........................ 272,600 9,700 Anteon International Corp. 1 ......... 316,414 20,900 Anthracite Capital, Inc. ............. 250,382 11,300 Antigenics, Inc. 1,2 ................. 96,728 15,300 Anworth Mortgage Asset Corp., REIT ... 181,764 9,400 Apogee Enterprises, Inc. ............. 97,760 21,400 Apollo Investment Corp. 1 ............ 294,678 27,300 Applera Corp.--Celera ................ Genomics Group 1 .................... 314,223 9,800 Applica, Inc. 1 ...................... 87,220 5,500 Applied Films Corp. 1 ................ 159,610 7,600 Applied Industrial Technologies, Inc. 228,912 4,500 Applied Signal Technology, Inc. ...... 157,725 18,300 Apria Healthcare Group, Inc. 1 ....... 525,210 13,300 AptarGroup, Inc. ..................... 581,077 18,400 aQuantive, Inc. 1 .................... 181,792 73,200 Aquila, Inc. 1 ....................... 260,592 12,500 Arbitron, Inc. 1 ..................... 456,500 8,088 Arch Chemicals, Inc. ................. 233,096 6,500 Arch Wireless, Inc.--Class A 1 ....... 185,185 5,800 Arctic Cat, Inc. ..................... 159,674 400 Arden Group, Inc.--Class A ........... 35,848 10,400 Argonaut Group, Inc. 1 ............... 191,672 9,331 Argosy Gaming Co. 1 .................. 350,846 19,400 ARIAD Pharmaceuticals, Inc. 1 ........ 145,306 108,800 Ariba, Inc. 1,2 ...................... 215,424 8,189 Arkansas Best Corp. .................. 269,582 10,541 Armor Holdings, Inc. 1 ............... 358,394 SHARES SECURITY VALUE - ------------------------------------------------------------------ 10,400 Array BioPharma, Inc. 1 .............. $ 82,680 31,500 Arris Group, Inc. 1 .................. 187,110 3,670 Arrow Financial Corp. ................ 111,751 8,600 Arrow International, Inc. ............ 257,312 14,807 Artesyn Technologies, Inc. 1 ......... 133,263 7,400 ArthroCare Corp. 1 ................... 215,192 8,300 Artisan Components, Inc. 1 ........... 214,140 25,700 ArvinMeritor, Inc. ................... 502,949 4,700 Asbury Automotive Group, Inc. 1 ...... 70,500 22,100 Ascential Software Corp. 1 ........... 353,379 4,400 Ashford Hospitality Trust, REIT ...... 36,740 15,300 AsiaInfo Holdings, Inc. 1 ............ 80,784 14,700 Aspect Communications Corp. 1 ........ 208,740 5,400 Aspect Medical Systems, Inc. 1 ....... 99,738 17,596 Aspen Technologies, Inc. 1 ........... 127,747 2,500 ASTA Funding, Inc. ................... 43,500 5,760 Astec Industries, Inc. 1 ............. 108,461 17,500 Asyst Technologies, Inc. 1 ........... 180,950 14,000 At Road, Inc. 1 ...................... 107,100 5,740 Atari, Inc. 1 ........................ 13,833 14,600 AtheroGenics, Inc. 1 ................. 277,838 16,954 Atlantic Coast Airlines Holdings, Inc. 1 97,316 11,706 ATMI, Inc. 1 ......................... 319,691 22,060 Atmos Energy Corp. ................... 564,515 8,900 Atrix Laboratories, Inc. 1 ........... 305,092 3,900 Atwood Oceanics, Inc. 1 .............. 162,825 7,700 Audiovox Corp.--Class A 1 ............ 129,976 5,800 August Technology Corp. 1 ............ 72,732 12,000 Authentidate Holding Corp. 1 ......... 131,160 15,700 Autobytel, Inc. 1 .................... 142,556 28,200 Avanex Corp. 1 ....................... 109,698 34,500 AVANT Immunotherapeutics, Inc. 1 ..... 91,770 2,600 Avatar Holding, Inc. 1 ............... 108,160 10,700 Aviall, Inc. 1 ....................... 203,407 18,071 Avista Corp. ......................... 332,868 37,100 Axcelis Technologies, Inc. 1 ......... 461,524 21,100 Axonyx, Inc. 1 ....................... 110,564 12,460 Aztar Corp. 1 ........................ 348,880 11,433 Baldor Electric Co. .................. 266,961 2,925 Baldwin & Lyons, Inc.--Class B ....... 78,507 700 BancFirst Corp. ...................... 41,825 28,000 BancorpSouth, Inc. ................... 630,840 4,600 Bandag, Inc. ......................... 204,838 27,441 Bank Mutual Corp. .................... 299,107 3,812 Bank of Granite Corp. ................ 79,709 5,300 Bank of the Ozarks, Inc. ............. 123,490 15,900 BankAtlantic Bancorp, Inc.--Class A .. 293,355 11,600 BankUnited Financial Corp.-- Class A 1 ........................... 299,280 4,300 Banner Corp. ......................... 124,958 9,300 Banta Corp. .......................... 413,013 6,000 Barnes Group, Inc. ................... 173,880 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 8 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 4,500 Bassett Furniture Industries, Inc. ... $ 97,920 13,800 BE Aerospace, Inc. 1 ................. 104,604 1,600 Beasley Broadcast Group, Inc.-- Class A 1 ........................... 23,936 5,098 Beazer Homes USA, Inc. ............... 511,380 3,641 bebe stores, Inc. 1 .................. 72,820 5,800 Bedford Property Investors ........... 169,592 5,000 BEI Technologies, Inc. ............... 141,550 3,835 Bel Fuse, Inc.--Class B .............. 159,919 8,733 Belden, Inc. ......................... 187,148 15,299 Benchmark Electronics, Inc. 1 ........ 445,201 6,100 Bentley Pharmaceuticals, Inc. 1 ...... 83,814 2,600 Berkshire Hills Bancorp, Inc. ........ 96,460 6,200 Berry Petroleum Co.--Class A ......... 182,342 39,777 Beverly Enterprises, Inc. 1 .......... 342,082 1,500 BHA Group Holdings, Inc. ............. 56,775 7,100 Big 5 Sporting Goods Corp. 1 ......... 185,949 6,300 Bio-Rad Laboratories, Inc.--Class A 1 370,818 3,900 Bio-Reference Laboratories, Inc. 1 ... 51,714 7,900 BioCryst Pharmaceuticals, Inc. 1 ..... 54,510 8,500 Bioenvision, Inc. 1 .................. 74,460 9,300 BioLase Technology, Inc. 1,2 ......... 125,178 27,428 BioMarin Pharmaceutical, Inc. 1 ...... 164,568 4,815 Biosite, Inc. 1,2 .................... 216,290 9,906 Bioveris Corp. 1 ..................... 82,418 45,200 Bisys Group, Inc. (The) 1 ............ 635,512 1,500 BKF Capital Group, Inc. 1 ............ 43,575 6,074 Black Box Corp. ...................... 287,057 12,100 Black Hills Corp. .................... 381,150 3,000 Blair Corp. .......................... 86,700 1,600 Blount International, Inc. 1 ......... 20,368 3,700 Blue Coat Systems, Inc. 1 ............ 123,913 2,100 Blue Nile, Inc. 1 .................... 78,981 5,300 Bluegreen Corp. 1 .................... 73,140 11,400 Blyth, Inc. .......................... 393,186 13,142 Bob Evans Farms, Inc. ................ 359,828 8,600 Boca Resorts, Inc.--Class A 1 ........ 170,452 16,400 Bombay Co., Inc. (The) 1 ............. 100,532 3,200 Bon-Ton Stores, Inc. (The) ........... 46,912 6,500 Bone Care International, Inc. 1 ...... 152,230 29,029 Borland Software Corp. 1 ............. 246,456 3,800 Boston Beer Co., Inc.--Class A 1 ..... 76,532 8,700 Boston Communications Group, Inc. 1 .. 89,175 10,200 Boston Private Financial Holdings, Inc. 236,232 15,300 Bowne & Co., Inc. .................... 242,505 12,600 Boyd Gaming Corp. .................... 334,782 5,100 Bradley Pharmaceuticals, Inc. 1 ...... 142,290 6,900 Brady Corp. .......................... 318,090 14,600 Brandywine Realty Trust, REIT ........ 396,974 6,200 Brigham Exploration Co. 1 ............ 56,916 5,400 Bright Horizon Family Solutions, Inc. 1 289,494 6,700 Brightpoint, Inc. 1 .................. 92,125 SHARES SECURITY VALUE - ------------------------------------------------------------------ 4,400 Bristol West Holdings, Inc. .......... $ 80,036 97,400 Brocade Communications Systems, Inc. 1 ..................... 582,452 6,100 Brookfield Homes Corp. ............... 159,759 24,035 Brookline Bancorp, Inc. .............. 352,593 16,627 Brooks Automation, Inc. 1 ............ 335,034 8,850 Brookstone, Inc. 1 ................... 177,442 6,700 Brown Shoe Co., Inc. ................. 274,231 7,900 Bruker BioSciences Corp. 1 ........... 38,473 6,600 Brush Engineered Materials, Inc. 1 ... 124,740 2,800 Bryn Mawr Bank Corp. ................. 63,700 4,250 BSB Bancorp, Inc. .................... 151,087 10,400 Buckeye Technologies, Inc. 1 ......... 119,600 2,200 Buckle, Inc. (The) ................... 62,150 1,500 Buffalo Wild Wings, Inc. 1 ........... 41,475 6,600 Building Materials Holding Corp. ..... 124,938 7,000 Burlington Coat Factory Warehouse Corp. ..................... 135,100 9,920 C&D Technologies, Inc. ............... 176,874 15,466 C-COR.net Corp. 1 .................... 159,145 18,410 Cable Design Technologies Corp. 1 .... 195,146 9,000 Cabot Microelectronics Corp. 1 ....... 275,490 12,000 Cabot Oil & Gas Corp.--Class A ....... 507,600 2,650 Cache, Inc. 1 ........................ 35,801 10,900 CACI International, Inc.--Class A 1 .. 440,796 14,746 Cal Dive International, Inc. 1 ....... 447,099 4,900 Cal-Maine Foods, Inc. ................ 68,600 13,300 Calgon Carbon Corp. .................. 89,110 9,100 California Micro Devices Corp. 1 ..... 104,923 8,500 California Pizza Kitchen, Inc. 1 ..... 162,860 6,600 California Water Services Group ...... 181,830 25,100 Callaway Golf Co. .................... 284,634 3,600 Callon Petroleum Co. 1 ............... 51,336 157,500 Calpine Corp. 1 ...................... 680,400 9,203 Cambrex Corp. ........................ 232,192 3,100 Camden National Corp. ................ 102,517 4,400 CancerVax Corp. 1 .................... 33,484 8,200 Candela Corp. 1 ...................... 80,360 13,100 Capital Automotive REIT .............. 384,223 3,475 Capital City Bank Group, Inc. ........ 137,575 2,400 Capital Corp. of the West ............ 93,216 6,200 Capital Lease Funding, Inc., REIT 1 .. 64,480 700 Capital Southwest Corp. .............. 55,321 1,000 Capital Trust, Inc.--Class A, REIT ... 26,720 3,900 Capitol Bancorp Ltd. ................. 101,439 7,651 Capstead Mortgage Corp. 2 ............ 102,906 27,000 Capstone Turbine Corp. 1 ............. 58,763 10,000 Captaris, Inc. 1 ..................... 64,600 12,861 Caraustar Industries, Inc. 1 ......... 181,469 5,200 CARBO Ceramics, Inc. ................. 354,900 25,400 Cardiac Science, Inc. 1 .............. 62,230 17,179 CardioDynamics International Corp. 1 . 86,754 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 9 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 2,400 Carmike Cinemas, Inc. 1 .............. $ 94,680 8,390 Carpenter Technology Corp. ........... 285,679 19,600 CarrAmerica Realty Corp., REIT ....... 592,508 6,200 Carreker Corp. 1 ..................... 62,124 8,600 Carrier Access Corp. 1 ............... 102,512 1,800 Carter's, Inc. 1 ..................... 52,398 7,000 Cascade Bancorp ...................... 129,360 4,500 Cascade Corp. ........................ 140,625 4,800 Cascade Natural Gas Corp. ............ 105,936 6,000 Casella Waste Systems, Inc.-- Class A 1 ........................... 78,900 19,286 Casey's General Stores, Inc. ......... 352,934 10,700 Cash America International, Inc. ..... 246,100 12,800 Casual Male Retail Group, Inc. 1 ..... 93,440 18,900 Catalina Marketing Corp. 1 ........... 345,681 2,200 Catapult Communications Corp. 1 ...... 50,600 8,118 Cathay Bancorp, Inc. ................. 541,471 7,200 Cato Corp. (The)--Class A ............ 161,640 2,120 CB Bancshares, Inc. .................. 197,584 18,200 CBRL Group, Inc. ..................... 561,470 5,100 CCC Information Services Group, Inc. 1 85,629 5,000 CDI Corp. ............................ 173,000 13,550 CEC Entertainment, Inc. 1 ............ 399,860 4,500 Cedar Shopping Centers, Inc. ......... 51,705 16,100 Cell Genesys, Inc. 1 ................. 167,279 20,550 Cell Therapeutics, Inc. 1,2 .......... 151,453 2,600 CellNet Data Systems, Inc. 1 ......... -- 7,650 Centene Corp. 1 ...................... 294,907 4,500 Centennial Communications Corp. 1 .... 32,175 5,500 Center Financial Corp. ............... 83,325 3,520 Central Coast Bancorp 1 .............. 64,416 4,600 Central European Distribution Corp. 1,2 119,186 7,000 Central Garden & Pet Co. 1 ........... 250,390 7,600 Central Pacific Financial Corp. ...... 209,000 6,450 Central Parking Corp. ................ 120,550 3,200 Central Vermont Public Service Corp. . 65,568 7,500 Century Aluminum Co. 1 ............... 185,925 1,300 Century Bancorp, Inc.--Class A ....... 42,757 25,328 Century Business Services, Inc. 1 .... 110,430 17,100 Cepheid, Inc. 1 ...................... 197,334 5,750 Ceradyne, Inc. 1 ..................... 205,677 9,200 Ceres Group, Inc. 1 .................. 56,488 10,600 Cerner Corp. 1,2 ..................... 472,548 6,900 CH Energy Group, Inc. ................ 320,436 25,800 Champion Enterprises, Inc. 1 ......... 236,844 4,700 Charles River Associates, Inc. 1 ..... 145,465 5,500 Charlotte Russe Holding, Inc. 1 ...... 117,590 43,300 Charming Shoppes, Inc. 1 ............. 386,669 100,500 Charter Communications, Inc.-- Class A 1,2 ......................... 393,960 1,500 Charter Financial Corp. .............. 51,000 17,300 CharterMac ........................... 340,118 SHARES SECURITY VALUE - ------------------------------------------------------------------ 6,900 Chattem, Inc. 1 ...................... $ 199,203 14,200 Checkpoint Systems, Inc. 1 ........... 254,606 4,500 Chemed Corp. ......................... 218,250 10,709 Chemical Financial Corp. ............. 395,055 8,000 Cheniere Energy, Inc. 1 .............. 156,560 2,400 Cherokee, Inc. ....................... 60,216 7,233 Chesapeake Corp. ..................... 192,976 4,800 Chicago Pizza & Brewery, Inc. 1 ...... 73,008 6,100 Children's Place 1 ................... 143,472 21,000 ChipPAC, Inc. 1 ...................... 131,670 14,700 Chiquita Brands International, Inc. 1 307,524 13,681 Chittenden Corp. ..................... 480,887 29,700 Chordiant Software, Inc. 1 ........... 135,432 13,775 Christopher & Banks Corp. ............ 243,955 2,319 Churchill Downs, Inc. ................ 94,383 19,747 CIBER, Inc. 1 ........................ 162,320 5,600 CIMA Labs, Inc. 1 .................... 188,888 17,100 Cimarex Energy Co. 1 ................. 516,933 90,200 Cincinnati Bell, Inc. 1 .............. 400,488 11,100 Ciphergen Biosystems, Inc. 1 ......... 81,252 4,800 CIRCOR International, Inc. ........... 97,872 30,300 Cirrus Logic, Inc. 1 ................. 182,103 16,200 Citizens Banking Corp. ............... 503,010 3,300 Citizens First Bancorp, Inc. ......... 78,573 11,176 Citizens, Inc. 1,2 ................... 91,643 7,900 City Holdings Co. .................... 249,482 3,174 CityBank Lynwood ..................... 101,631 18,800 CKE Restaurants, Inc. 1 .............. 250,604 10,650 Clarcor, Inc. ........................ 487,770 6,100 Clark, Inc. 1 ........................ 113,155 4,100 Clarus Corp. 1 ....................... 47,437 1,800 Clayton Williams Energy, Inc. 1 ...... 43,020 18,060 Cleco Corp. .......................... 324,719 3,900 Cleveland-Cliffs, Inc. 1 ............. 219,921 2,700 Clifton Savings Bancorp, Inc. ........ 31,887 3,500 Closure Medical Corp. 1 .............. 87,885 149,100 CMGI, Inc. 1 ......................... 290,745 60,700 CMS Energy Corp. 1 ................... 554,191 3,500 CNA Surety Corp. 1 ................... 38,325 47,800 CNET Networks, Inc. 1 ................ 529,146 6,100 Coachmen Industries, Inc. ............ 97,539 2,753 Coastal Financial Corp. .............. 41,157 4,800 CoBiz, Inc. .......................... 66,384 1,800 Coca-Cola Bottling Co. Consolidated .. 104,202 80,000 Coeur d'Alene Mines Corp. 1,2 ........ 326,400 14,900 Cognex Corp. ......................... 573,352 12,274 Coherent, Inc. 1 ..................... 366,379 9,983 Cohu, Inc. ........................... 190,076 9,328 Coinstar, Inc. 1,2 ................... 204,936 6,000 Coldwater Creek, Inc. 1 .............. 158,820 5,900 Cole National Corp. 1 ................ 137,765 14,032 Collins & Aikman Corp. 1 ............. 78,439 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 10 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 7,200 Colonial Properties Trust ............ $ 277,416 2,100 Columbia Bancorp ..................... 61,362 6,818 Columbia Banking System, Inc. ........ 151,360 11,500 Comfort Systems USA, Inc. 1 .......... 73,485 10,200 Commerce Group, Inc. ................. 503,574 13,589 Commercial Capital Bancorp, Inc. 1 ... 236,041 15,253 Commercial Federal Corp. ............. 413,356 10,800 Commercial Metals Co. ................ 350,460 17,600 Commercial Net Lease Realty .......... 302,720 8,016 Commonwealth Telephone Enterprises, Inc. 1 ................. 358,876 20,100 CommScope, Inc. 1 .................... 431,145 9,400 Community Bank System, Inc. .......... 214,226 4,690 Community Banks, Inc. ................ 137,745 13,741 Community First Bankshares, Inc. ..... 442,323 4,663 Community Trust Bancorp, Inc. ........ 142,221 4,600 Compass Minerals International, Inc. . 89,148 10,700 CompuCom Systems, Inc. 1 ............. 48,578 8,093 CompuCredit Corp. 1 .................. 140,009 3,100 Computer Programs and System, Inc. ... 63,178 12,324 Comstock Resource, Inc. 1 ............ 239,825 6,200 Comtech Telecommunications Corp. 1 ... 139,872 10,700 Conceptus, Inc. 1,2 .................. 120,375 8,100 Concord Communications, Inc. 1 ....... 92,421 10,800 Concur Technologies, Inc. 1 .......... 115,560 12,361 CONMED Corp. 1 ....................... 338,691 1,950 Connecticut Water Service, Inc. ...... 50,037 11,711 Connetics Corp. 1 .................... 236,562 4,200 Consolidated Graphics, Inc. 1 ........ 185,010 1,600 Consolidated-Tomoka Land Co. ......... 60,416 24,700 Continental Airlines, Inc.--Class B 1 280,839 24,600 Cooper Tire & Rubber Co. ............. 565,800 14,600 Corillian Corp. 1 .................... 73,584 23,706 Corixa Corp. 1 ....................... 110,707 13,625 Corn Products International, Inc. .... 634,244 6,600 Cornell Cos., Inc. 1 ................. 89,760 20,100 Cornerstone Realty Income Trust, Inc. 176,277 12,700 Corporate Office Properties Trust, REIT ................................ 315,595 4,400 Correctional Properties Trust, REIT .. 128,700 13,793 Corrections Corp. of America, REIT 1 . 544,686 5,800 Corus Bankshares, Inc. ............... 238,438 2,500 Corvel Corp. 1 ....................... 70,875 138,300 Corvis Corp. 1,2 ..................... 195,003 6,400 Cosi, Inc. 1 ......................... 38,208 8,101 Cost Plus, Inc. 1 .................... 262,877 6,700 CoStar Group, Inc. 1 ................. 307,731 1,900 Courier Corp. ........................ 79,306 12,600 Cousins Properties, Inc., REIT ....... 415,170 6,200 Covansys Corp. 1 ..................... 64,046 4,600 Covenant Transport, Inc.--Class A 1 .. 78,614 6,500 Crawford & Co.--Class B .............. 32,045 SHARES SECURITY VALUE - ------------------------------------------------------------------ 33,600 Cray, Inc. 1 ......................... $ 222,432 35,980 Credence Systems Corp. 1,2 ........... 496,524 3,900 Credit Acceptance Corp. 1 ............ 58,773 48,133 Crompton Corp. ....................... 303,238 9,500 Cross Country Healthcare, Inc. 1 ..... 172,425 64,300 Crown Holdings, Inc. 1 ............... 641,071 6,700 Crown Media Holdings, Inc.--Class A 1 57,084 20,100 CSG Systems International, Inc. 1 .... 416,070 16,860 CSK Auto Corp. 1 ..................... 288,980 1,850 CSS Industries, Inc. ................. 64,824 8,200 CT Communications, Inc. .............. 123,410 10,600 CTI Molecular Imaging, Inc. 1 ........ 150,308 13,790 CTS Corp. ............................ 166,307 5,900 Cubic Corp. .......................... 123,487 16,257 Cubist Pharmaceuticals, Inc. 1 ....... 180,453 18,400 Cumulus Media, Inc.--Class A 1 ....... 309,304 7,000 CUNO, Inc. 1 ......................... 373,450 19,200 CuraGen Corp. 1,2 .................... 115,392 13,300 Curis, Inc. 1 ........................ 58,786 7,500 Curtiss-Wright Corp. ................. 421,425 11,722 CV Therapeutics, Inc. 1,2 ............ 196,461 16,527 CVB Financial Corp. .................. 359,958 6,200 CyberGuard Corp. 1 ................... 50,592 6,451 Cyberonics, Inc. 1,2 ................. 215,205 3,400 CyberOptics Corp. 1 .................. 88,332 11,900 CyberSource Corp. 1 .................. 99,484 13,700 Cymer, Inc. 1 ........................ 512,928 12,000 Cypress Bioscience, Inc. 1 ........... 164,760 14,300 Cytec Industries, Inc. ............... 649,935 7,000 CYTOGEN Corp. 1 ...................... 111,300 5,000 D&E Communications, Inc. ............. 67,100 6,600 Daktronics, Inc. 1 ................... 164,670 16,000 Danielson Holding Corp. 1 ............ 110,560 28,500 Darling International, Inc. 1 ........ 119,700 4,106 Datascope Corp. ...................... 162,967 5,700 Dave & Buster's, Inc. 1 .............. 107,103 8,700 DDi Corp. 1 .......................... 71,601 1,200 Deb Shops, Inc. ...................... 28,872 4,000 Deckers Outdoor Corp. 1 .............. 117,960 19,700 Decode Genetics, Inc. 1 .............. 167,450 1,840 Del Laboratories, Inc. 1 ............. 57,077 10,154 Delphi Financial Group, Inc.--Class A 451,853 39,300 Delta Air Lines, Inc. 1 .............. 279,816 14,368 Delta and Pine Land Co. .............. 315,378 7,300 Delta Petroleum Corp. 1 .............. 98,185 3,100 Deltic Timber Corp. .................. 119,040 19,900 Denbury Resources, Inc. 1 ............ 416,905 21,400 Dendreon Corp. 1 ..................... 262,150 13,224 Dendrite International, Inc. 1 ....... 245,702 4,900 Department 56, Inc. 1 ................ 75,460 8,900 DHB Industries, Inc. 1 ............... 135,102 8,100 Diagnostic Products Corp. ............ 355,914 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 11 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 8,200 DiamondCluster International, Inc. 1 . $ 71,258 11,000 Dick's Sporting Goods, Inc. 1 ........ 366,850 5,200 Digene Corp. 1 ....................... 189,956 6,800 Digi International, Inc. 1 ........... 72,896 5,841 Digimarc Corp. 1 ..................... 77,977 12,622 Digital Insight Corp. 1 .............. 261,654 11,900 Digital River, Inc. 1 ................ 388,297 5,900 Digital Theater Systems, Inc. 1 ...... 154,285 21,800 Digitas, Inc. 1 ...................... 240,454 14,669 Dime Community Bancorp, Inc. ......... 256,414 14,700 DiMon, Inc. .......................... 84,084 3,500 Diodes, Inc. 1 ....................... 82,915 7,560 Dionex Corp. 1 ....................... 417,085 5,300 Direct General Corp. ................. 170,978 16,600 Discovery Laboratories, Inc. 1 ....... 159,194 10,700 Ditech Communications Corp. 1 ........ 249,738 8,600 Diversa Corp. 1 ...................... 87,118 6,200 DJ Orthopedics, Inc. 1 ............... 142,600 40,600 Dobson Communications Corp.-- Class A 1 ........................... 132,356 8,900 Dollar Thrifty Automotive Group, Inc. 1 244,216 2,300 Dominion Homes, Inc. 1 ............... 53,130 1,300 Donegal Group, Inc.--Class A ......... 26,052 15,700 Dot Hill Systems Corp. 1 ............. 175,997 44,600 DoubleClick, Inc. 1 .................. 346,542 6,000 DOV Pharmaceutical, Inc. 1 ........... 83,760 3,240 Dover Downs Gaming & Entertainment, Inc. ................. 36,450 3,200 Dover Motorsports, Inc. .............. 12,800 6,800 Downey Financial Corp. ............... 362,100 8,200 Dress Barn, Inc. 1 ................... 140,384 3,300 Drew Industries, Inc. 1 .............. 134,310 5,300 Drexler Technology Corp. 1 ........... 70,649 2,400 Dril-Quip, Inc. 1 .................... 44,880 8,851 DRS Technologies, Inc. 1 ............. 282,347 13,500 drugstore.com, Inc. 1 ................ 47,115 12,200 DSP Group, Inc. 1 .................... 332,328 8,682 Duane Reade, Inc. 1 .................. 141,777 2,200 Ducommun, Inc. 1 ..................... 47,036 5,061 DuPont Photomasks, Inc. 1 ............ 102,890 27,500 Duquesne Light Holdings, Inc. ........ 531,025 4,600 Duratek, Inc. 1 ...................... 69,506 15,700 Durect Corp. 1,2 ..................... 54,793 7,000 DUSA Pharmaceuticals, Inc. 1 ......... 66,500 10,600 Dyax Corp. 1 ......................... 124,550 18,066 Dycom Industries, Inc. 1 ............. 505,848 26,400 E.piphany, Inc. 1 .................... 127,512 7,000 Eagle Materials, Inc. ................ 497,140 51,400 EarthLink, Inc. 1 .................... 531,990 18,670 East West Bancorp, Inc. .............. 573,169 7,800 EastGroup Properties, Inc. ........... 262,626 11,000 Echelon Corp. 1 ...................... 123,090 SHARES SECURITY VALUE - ------------------------------------------------------------------ 15,206 Eclipsys Corp. 1 ..................... $ 232,044 7,000 eCollege.com, Inc. 1 ................. 112,000 6,100 Edge Petroleum Corp. 1 ............... 103,700 6,700 EDO Corp. ............................ 161,604 5,600 Education Lending Group, Inc. 1 ...... 99,400 18,200 eFunds Corp. 1 ....................... 318,500 13,229 EGL, Inc. 1 .......................... 351,891 19,700 El Paso Electric Co. 1 ............... 304,168 6,500 Electro Rent Corp. ................... 68,055 11,956 Electro Scientific Industries, Inc. 1 338,474 4,300 Electronics Boutique Holdings Corp. 1 113,262 19,800 Electronics for Imaging, Inc. 1 ...... 559,548 7,500 Elizabeth Arden, Inc. 1 .............. 157,800 8,760 Elkcorp .............................. 209,714 7,300 Embarcadero Technologies, Inc. 1 ..... 90,228 900 EMC Insurance Group, Inc. ............ 21,024 5,300 EMCOR Group, Inc. 1 .................. 233,094 18,300 Emmis Communications Corp.-- Class A 1 ........................... 383,934 11,700 Empire District Electric Co. ......... 235,287 2,300 Empire Resorts, Inc. 1 ............... 32,315 4,700 EMS Technologies, Inc. 1 ............. 91,321 30,700 Emulex Corp. 1 ....................... 439,317 7,700 Encore Acquisition Co. 1 ............. 214,830 3,800 Encore Capital Group, Inc. 1 ......... 50,198 12,000 Encore Medical Corp. 1 ............... 75,600 4,700 Encore Wire Corp. 1 .................. 129,579 21,446 Encysive Pharmaceuticals, Inc. 1 ..... 182,291 9,700 Endocardial Solutions, Inc. 1 ........ 100,395 13,600 Energen Corp. ........................ 652,664 9,409 Energy Conversion Devices, Inc. 1 .... 105,945 10,900 Energy Partners Ltd. 1 ............... 166,770 800 EnergySouth, Inc. .................... 32,016 8,225 Engineered Support Systems, Inc. ..... 481,245 4,400 Ennis Business Forms, Inc. ........... 85,800 8,900 EnPro Industries, Inc. 1 ............. 204,522 1,200 Enstar Group, Inc. (The) 1 ........... 63,936 19,300 Entegris, Inc. 1 ..................... 223,301 79,200 Enterasys Networks, Inc. 1 ........... 167,112 8,675 Entertainment Properties Trust ....... 310,044 16,300 Entravision Communications Corp.-- Class A 1 ........................... 125,184 21,500 Entrust, Inc. 1 ...................... 96,750 8,798 Enzo Biochem, Inc. 1 ................. 131,970 16,400 Enzon, Inc. 1 ........................ 209,264 15,800 Epicor Software Corp. 1 .............. 221,990 7,000 Epiq Systems, Inc. 1 ................. 101,500 8,100 EPIX Medical, Inc. 1 ................. 170,910 3,400 Equinix, Inc. 1 ...................... 115,396 22,200 Equity Inns, Inc., REIT .............. 206,238 14,750 Equity One, Inc., REIT ............... 266,680 16,600 eResearch Technology, Inc. 1 ......... 464,800 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 12 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 2,200 Escalade, Inc. ....................... $ 50,842 4,867 ESCO Electronics Corp. 1 ............. 259,703 10,400 eSPEED, Inc.--Class A 1 .............. 183,560 11,919 ESS Technology, Inc. 1 ............... 127,652 8,300 Essex Property Trust, Inc. ........... 567,305 8,100 Esterline Technologies Corp. 1 ....... 239,193 11,900 Ethan Allen Interiors, Inc. .......... 427,329 8,000 Euronet Worldwide, Inc. 1 ............ 185,040 2,700 Exactech, Inc. 1 ..................... 58,590 15,282 Exar Corp. 1 ......................... 224,034 4,135 Excel Technology, Inc. 1 ............. 137,489 22,800 Exelixis, Inc. 1 ..................... 230,052 8,600 Exide Technologies 1 ................. 175,870 1,500 Exponent, Inc. 1 ..................... 40,305 14,900 ExpressJet Holdings, Inc. 1 .......... 180,886 39,500 Extreme Networks, Inc. 1 ............. 218,040 21,800 Exult, Inc. 1 ........................ 117,284 15,900 F.N.B. Corp.1 ........................ 324,360 12,700 F5 Networks, Inc. 1 .................. 336,296 7,400 FactSet Research Systems, Inc. ....... 349,798 12,983 FalconStor Software, Inc. 1,2 ........ 100,229 1,900 Farmer Bros. Co. ..................... 50,977 1,700 Farmers Capital Bank Corp. ........... 60,775 3,600 FARO Technologies, Inc. 1 ............ 92,412 4,216 FBL Financial Group, Inc.--Class A ... 119,144 3,200 Federal Agricultural Mortgage Corp.-- Class C 1 ........................... 76,576 17,930 Federal Signal Corp. ................. 333,677 8,902 FEI Co. 1 ............................ 212,847 19,031 FelCor Lodging Trust, Inc. 1 ......... 230,275 15,432 Ferro Corp. .......................... 411,726 4,800 Fidelity Bankshares, Inc. ............ 170,160 14,528 FileNet Corp. 1 ...................... 458,649 7,100 Financial Federal Corp. 1 ............ 250,346 2,200 Financial Institutions, Inc. ......... 54,340 7,000 FindWhat.com 1 ....................... 161,980 58,200 Finisar Corp. 1 ...................... 115,236 6,600 Finish Line, Inc.--Class A 1 ......... 199,122 2,900 First Bancorp, North Carolina ........ 96,947 12,400 First BanCorp., Puerto Rico .......... 505,300 3,400 First Busey Corp. .................... 99,416 5,300 First Cash Financial Services, Inc. 1 112,784 14,100 First Charter Corp. .................. 307,239 2,700 First Citizens BancShares, Inc.-- Class A ............................. 329,400 25,982 First Commonwealth Financial Corp. ... 336,987 6,300 First Community Bancorp .............. 242,172 3,749 First Community Bancshares, Inc. ..... 125,591 8,900 First Federal Capital Corp. .......... 247,687 11,342 First Financial Bancorp .............. 200,980 4,790 First Financial Bankshares, Inc. ..... 200,845 4,110 First Financial Corp., Indiana ....... 131,109 SHARES SECURITY VALUE - ------------------------------------------------------------------ 4,200 First Financial Holdings ............. $ 121,002 34,100 First Health Group Corp. 1 ........... 532,301 10,600 First Horizon Pharmaceutical Corp. 1 . 200,340 2,900 First Indiana Corp. .................. 55,245 15,400 First Industrial Realty Trust, Inc. .. 567,952 7,628 First Merchants Corp. ................ 197,947 16,800 First Midwest Bancorp, Inc. .......... 591,528 16,865 First National Bankshares of Florida . 319,592 31,417 First Niagara Financial Group, Inc. .. 377,004 2,550 First Oak Brook Bancshares, Inc. ..... 77,265 600 First of Long Island Corp. ........... 27,708 3,900 First Place Financial Corp. .......... 72,423 4,900 First Republic Bank .................. 211,092 7,182 First Sentinel Bancorp, Inc. ......... 147,590 3,981 First Source Corp. ................... 99,445 3,500 First State Bancorp .................. 107,520 7,500 FirstFed Financial Corp. 1 ........... 312,000 1,900 Fisher Communications, Inc. 1 ........ 95,627 10,750 Flagstar Bancorp, Inc. ............... 213,710 20,077 Fleetwood Enterprises, Inc. 1 ........ 292,120 7,500 Florida East Coast Industries, Inc. .. 289,875 12,725 Flowers Foods, Inc. .................. 332,759 19,900 Flowserve Corp. 1 .................... 496,306 6,600 Flushing Financial Corp. ............. 116,490 13,600 FMC Corp. 1 .......................... 586,296 1,400 FNB Corp. ............................ 40,348 17,200 Forest Oil Corp. 1 ................... 469,904 9,900 FormFactor, Inc. 1 ................... 222,255 6,000 Forrester Research, Inc. 1 ........... 111,900 7,825 Forward Air Corp. 1 .................. 292,655 1 Fourthstage Technologies, Inc. 1 ..... -- 2,400 FPIC Insurance Group, Inc. 1 ......... 59,256 2,300 Franklin Bank Corp., Houston 1 ....... 36,386 5,400 Franklin Electric Co., Inc. .......... 203,904 14,668 Freds, Inc.--Class A ................ 324,016 14,900 FreeMarkets, Inc. 1 .................. 97,148 15,729 Frontier Airlines, Inc. 1 ............ 171,132 6,125 Frontier Financial Corp. ............. 214,007 10,209 Frontier Oil Corp. ................... 216,329 13,500 FSI International, Inc. 1 ............ 105,435 15,900 FTI Consulting, Inc. 1 ............... 262,350 15,700 FuelCell Energy, Inc. 1 .............. 183,376 12,348 Fuller (H.B.) Co. .................... 350,683 19,100 Furniture Brands International, Inc. . 478,455 12,000 FX Energy, Inc. 1 .................... 106,920 6,672 G & K Services, Inc.--Class A ........ 268,148 3,500 Gabelli Asset Management, Inc.-- Class A ............................. 148,750 12,720 Gables Residential Trust ............. 432,226 5,500 GameStop Corp. 1 ..................... 83,710 8,650 Gardner Denver Machinery, Inc. 1 ..... 241,335 28,085 Gartner Group, Inc.--Class A 1 ....... 371,284 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 13 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 83,200 Gateway, Inc. 1 ...................... $ 374,400 18,100 GATX Corp. ........................... 492,320 11,000 Gaylord Entertainment, Inc. 1 ........ 345,290 1,875 GB&T Bancshares, Inc. ................ 44,812 22,800 Genaera Corp. 1 ...................... 95,760 13,500 GenCorp, Inc. ........................ 180,765 29,600 Genelabs Technologies, Inc. 1 ........ 68,376 3,300 Genencor International, Inc. 1 ....... 54,021 17,450 General Cable Corp. 1 ................ 149,197 17,600 General Communication--Class A 1 ..... 139,744 8,100 Genesco, Inc. 1 ...................... 191,403 7,000 Genesee & Wyoming, Inc.--Class A 1 ... 165,900 7,050 Genesis HealthCare Corp. 1 ........... 204,732 12,000 Genesis Microchip, Inc. 1 ............ 165,240 4,800 Genlyte Group 1 ...................... 301,824 27,000 Genta, Inc. 1 ........................ 67,500 11,200 Gentiva Health Services, Inc. 1 ...... 182,112 3,900 Geo Group, Inc. (The) 1 .............. 79,560 10,647 Georgia Gulf Corp. ................... 381,801 1,465 German American Bancorp .............. 24,612 17,300 Geron Corp. 1,2 ...................... 139,957 5,700 Getty Realty Corp. ................... 143,412 8,600 Gevity HR, Inc. ...................... 225,234 4,900 Giant Industries, Inc. 1 ............. 107,800 5,900 Gibraltar Steel Corp. ................ 193,638 11,000 Glacier Bancorp, Inc. ................ 309,870 5,400 Gladstone Capital Corp.5 ............. 108,810 10,700 Glatefelter (P.H.) Co. ............... 150,656 9,551 Glenborough Realty Trust, Inc. ....... 175,261 13,400 Glimcher Realty Trust ................ 296,408 8,900 Global Imaging Systems, Inc. 1 ....... 326,274 34,500 Global Industries Ltd. 1 ............. 197,340 11,300 Global Power Equipment Group, Inc. 1 . 90,626 15,000 Gold Bancorp, Inc. ................... 232,500 5,861 Golden Telecom, Inc. ................. 164,929 9,100 Goody's Family Clothing, Inc. ........ 94,367 56,800 Goodyear Tire & Rubber Co. 1,2 ....... 516,312 1,800 Gorman-Rupp Co. ...................... 48,906 9,800 Government Properties Trust, Inc., REIT ................................ 102,410 36,098 Graftech International Ltd. 1 ........ 377,585 12,450 Granite Construction, Inc. ........... 226,963 23,600 Graphic Packaging Corp. 1 ............ 204,140 15,700 Gray Television, Inc. ................ 218,073 1,000 Great American Financial Resources, Inc. ..................... 15,900 5,968 Great Atlantic & Pacific Tea Co. 1 ... 45,715 18,700 Great Lakes Chemical Corp. ........... 506,022 3,200 Great Southern Bancorp, Inc. ......... 93,600 19,200 Greater Bay Bancorp 2 ................ 554,880 1,800 Greenbrier Cos, Inc. (The) 1 ......... 34,290 2,800 Greg Manning Auctions, Inc. 1 ........ 42,840 SHARES SECURITY VALUE - ------------------------------------------------------------------ 350 Grey Global Group .................... $ 344,750 75,600 Grey Wolf, Inc. 1 .................... 320,544 5,000 Grief Bros Corp.--Class A ............ 211,250 10,070 Griffon Corp. 1 ...................... 224,360 4,800 Group 1 Software, Inc. 1 ............. 110,160 6,800 Group Automotive, Inc. 1 ............. 225,828 6,400 GSI Commerce, Inc. 1 ................. 61,632 5,600 Guess, Inc. 1 ........................ 90,160 15,500 Guilford Pharmaceuticals, Inc. 1 ..... 73,625 8,900 Guitar Center, Inc. 1 ................ 395,783 4,300 Gulf Island Fabrication .............. 93,009 5,300 GulfMark Offshore, Inc. 1 ............ 83,634 11,400 Gymboree Corp. 1 ..................... 175,104 6,800 Haemonetics Corp. 1 .................. 201,620 9,582 Hain Celestial Group, Inc. 1 ......... 173,434 6,500 Hancock Fabrics, Inc. ................ 82,875 12,300 Hancock Holding Co. .................. 357,438 10,555 Handleman Co. ........................ 244,454 8,400 Hanger Orthopedic Group, Inc. 1 ...... 98,448 4,621 Hanmi Financial Corp. ................ 136,319 28,100 Hanover Compressor Co. 1 ............. 334,390 2,800 Hansen Natural Corp. 1 ............... 70,924 7,701 Harbor Florida Bancorp, Inc. ......... 211,855 12,300 Harland (John H.) Co. ................ 361,005 7,400 Harleysville Group, Inc. ............. 139,490 9,568 Harleysville National Corp. .......... 244,941 27,800 Harmonic, Inc. 1 ..................... 236,856 5,700 Harris & Harris Group, Inc. .......... 69,711 17,400 Harris Interactive, Inc. 1 ........... 116,928 15,000 Harvest Natural Resources, Inc. 1 .... 223,650 6,500 Haverty Furniture Cos., Inc. ......... 113,620 13,400 Hayes Lemmerz International, Inc. 1 .. 202,340 12,300 Headwaters, Inc. 1 ................... 318,939 15,500 Healthcare Realty Trust, Inc. ........ 580,940 7,050 Healthcare Services Group, Inc. ...... 107,865 7,200 HealthExtras, Inc. 1 ................. 119,304 13,024 Heartland Express, Inc. .............. 356,337 4,050 Heartland Financial USA, Inc. ........ 74,318 44,100 Hecla Mining Co. 1 ................... 251,370 6,400 HEICO Corp. .......................... 116,800 6,300 Heidrick & Struggles International, Inc. 1 ............... 186,984 11,005 Helix Technology Corp. ............... 234,737 17,900 Helmerich & Payne, Inc. .............. 467,548 40,500 Hercules, Inc. 1 ..................... 493,695 9,000 Heritage Property Investment Trust, REIT ................................ 243,540 6,200 Herley Industries, Inc. 1 ............ 121,148 6,800 Hexcel Corp. 1 ....................... 78,744 9,637 Hibbett Sporting Goods, Inc. 1 ....... 263,572 10,200 Highland Hospitality Corp., REIT 1 ... 102,510 20,000 Highwoods Properties, Inc. ........... 470,000 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 14 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 12,500 Hilb, Rogal and Hobbs Co. ............ $ 446,000 22,900 Hollinger International, Inc. ........ 384,491 6,100 Hollis-Eden Pharmaceuticals, Inc. 1,2 73,505 5,000 Holly Corp. .......................... 187,000 19,600 Hollywood Entertainment Corp. 1 ...... 261,856 8,800 Hologic, Inc. 1 ...................... 204,600 12,200 Home Properties of New York, Inc. .... 475,556 38,300 HomeStore, Inc. 1 .................... 152,817 3,000 Hooker Furniture Corp. ............... 60,510 23,400 Hooper Holmes, Inc. .................. 134,316 18,368 Horace Mann Educators Corp. .......... 321,073 4,700 Horizon Financial Corp. .............. 93,530 17,975 Hot Topic, Inc. 1 .................... 368,308 5,300 Houston Exploration Co. 1 ............ 274,752 2,700 Hub Group, Inc.--Class A 1 ........... 92,070 4,300 Hudson Highland Group, Inc. 1 ........ 131,838 10,900 Hudson River Bancorp, Inc. ........... 186,063 48,600 Human Genome Sciences, Inc. 1 ........ 565,218 8,040 Humboldt Bancorp ..................... 168,116 9,300 Hutchinson Technology 1 .............. 228,687 7,200 Hydril Co. 1 ......................... 226,800 21,000 Hypercom Corp. 1 ..................... 177,450 14,580 Hyperion Solutions Corp. 1 ........... 637,438 7,900 I-Flow Corp. 1 ....................... 93,694 3,500 Iberiabank Corp. ..................... 207,130 4,900 ICU Medical, Inc. 1,2 ................ 164,297 14,300 IDACORP, Inc. ........................ 386,100 32,900 Identix, Inc. 1 ...................... 245,763 18,600 IDEX Corp. ........................... 638,910 7,700 IDX Systems Corp. 1 .................. 245,553 7,700 IHOP Corp. ........................... 275,352 4,700 II-VI, Inc. 1 ........................ 144,102 14,563 ILEX OnOclogy, Inc. 1 ................ 363,929 8,900 Illumina, Inc. 1 ..................... 56,515 5,900 Imagistics International, Inc. 1 ..... 208,860 13,000 Imation Corp. ........................ 553,930 43,300 IMC Global, Inc. ..................... 580,220 6,600 IMCO Recycling, Inc. 1 ............... 87,252 7,450 Immucore, Inc. 1 ..................... 242,498 16,479 ImmunoGen, Inc. 1 .................... 100,687 18,700 Immunomedics, Inc. 1,2 ............... 91,069 23,400 Impac Mortgage Holdings, Inc., REIT .. 526,968 19,000 Impax Laboratories, Inc. 1 ........... 368,220 17,241 In Focus Systems, Inc. 1 ............. 146,549 25,700 Incyte Genomics, Inc. 1 .............. 196,348 6,300 Independent Bank Corp.-- Massachusetts ....................... 182,385 8,841 Independent Bank Corp.--Michigan ..... 224,561 17,400 Indevus Pharmaceuticals, Inc. 1 ...... 107,010 7,600 Inet Technologies, Inc. 1 ............ 94,772 7,200 Infinity Property & Casual Corp. ..... 237,600 4,700 Infocrossing, Inc. 1 ................. 63,450 SHARES SECURITY VALUE - ------------------------------------------------------------------ 19,800 Infonet Services Corp.--Class B 1 .... $ 33,660 31,200 Informatica Corp. 1 .................. 238,056 5,200 Information Holdings, Inc. 1 ......... 142,324 11,900 InfoSpace, Inc. 1 .................... 452,676 11,200 InfoUSA, Inc. 1 ...................... 113,568 7,200 Ingles Markets, Inc.--Class A ........ 80,424 16,000 InKine Pharmaceutical Co., Inc. 1 .... 61,920 10,400 Innkeepers USA Trust ................. 107,224 1,900 Innovative Solutions and Support, Inc. 1 ..................... 37,088 19,000 Input/Output, Inc. 1 ................. 157,510 19,700 Insight Communications Co., Inc. 1 ... 182,422 18,362 Insight Enterprises, Inc. 1 .......... 326,109 10,890 Insituform Technologies--Class A 1 ... 177,180 11,700 Inspire Pharmaceuticals, Inc. 1 ...... 195,624 3,422 Insurance Auto Auctions, Inc. 1 ...... 58,174 8,222 Integra Bank Corp. ................... 181,131 7,500 Integra LifeSciences Holdings 1 ...... 264,525 39,200 Integrated Device Technology, Inc. 1 . 542,528 10,900 Integrated Electrical Services, Inc. 1 87,745 13,400 Integrated Silicon Solution, Inc. 1 .. 163,614 2,100 Inter Parfums, Inc. .................. 43,785 8,890 Inter-Tel, Inc. ...................... 221,983 12,800 Interactive Data Corp. 1 ............. 222,976 7,535 Intercept Group, Inc. 1 .............. 123,423 3,300 Interchange Financial Services Corp. . 82,104 20,900 InterDigital Communications Corp. 1 .. 393,129 18,441 Interface, Inc. 1 .................... 160,990 13,624 Intergraph Corp. 1 ................... 352,317 7,136 Intermagnetics General Corp. 1 ....... 242,838 10,300 Intermune, Inc. 1 .................... 158,826 16,100 Internet Capital Group, Inc. 1 ....... 124,614 14,500 Internet Security Systems, Inc. 1 .... 222,430 3,500 Intersections, Inc. 1 ................ 83,965 18,600 Interstate Bakeries Corp. ............ 201,810 2,100 InterVideo, Inc. 1 ................... 27,174 14,800 Intervoice, Inc. 1 ................... 169,756 16,750 Interwoven, Inc. 1 ................... 169,175 7,400 Intrado, Inc. 1 ...................... 119,066 11,950 Intuitive Surgical, Inc. 1 ........... 227,050 9,700 Invacare Corp. ....................... 433,784 11,900 Inveresk Research Group, Inc. 1 ...... 366,996 4,400 Inverness Medical Innovations, Inc. 1 96,360 16,400 Investment Technology Group, Inc. 1 .. 209,756 14,000 Investors Real Estate Trust, REIT .... 145,320 6,500 InVision Technologies, Inc. 1 ........ 324,350 25,309 Iomega Corp. ......................... 141,224 7,200 Ionics, Inc. 1 ....................... 203,400 15,700 iPass, Inc. 1 ........................ 166,263 4,400 iPayment Holdings, Inc. 1 ............ 180,400 6,500 Irwin Financial Corp. ................ 171,600 22,068 Isis Pharmaceuticals, Inc. 1 ......... 126,670 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 15 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 6,711 Isle of Capri Casinos, Inc. 1 ........ $ 117,107 9,600 Isolagen, Inc. 1 ..................... 98,688 1,500 ITLA Capital Corp. 1 ................. 60,855 9,000 Itron, Inc. 1 ........................ 206,460 12,100 iVillage, Inc. 1 ..................... 76,835 8,700 Ixia 1 ............................... 85,608 9,100 IXYS Corp. 1 ......................... 71,708 2,400 J&J Snack Foods Corp. 1 .............. 97,992 6,650 J. Jill Group, Inc. 1 ................ 156,874 7,000 j2 Global Communications, Inc. 1,2 ... 194,600 13,198 Jack in the Box, Inc. 1 .............. 391,981 29,014 Jacuzzi Brands, Inc. 1 ............... 234,143 10,800 JAKKS Pacific, Inc. 1 ................ 224,532 10,150 Jarden Corp. 1 ....................... 365,299 11,382 JDA Software Group, Inc. 1 ........... 149,901 16,300 JLG Industries, Inc. ................. 226,407 7,110 Jo-Ann Stores, Inc. 1 ................ 209,034 3,100 John B. Sanfilippo & Son, Inc. 1 ..... 82,832 11,882 Jones Lang LaSalle, Inc. 1 ........... 322,002 3,050 Jos. A. Bank Clothiers, Inc. 1 ....... 95,740 6,600 Journal Communications, Inc.-- Class A ............................. 124,278 14,703 Journal Register Co. 1 ............... 294,060 19,000 Joy Global, Inc. ..................... 568,860 6,900 Jupitermedia Corp. 1 ................. 97,704 9,700 K-Swiss, Inc.--Class A ............... 196,037 12,850 K-V Pharmaceutical Co.--Class A 1 .... 296,707 11,800 K2, Inc. 1 ........................... 185,260 5,580 Kadant, Inc. 1 ....................... 129,065 6,900 Kaman Corp.--Class A ................. 96,531 1,200 Kansas City Life Insurance Co. ....... 50,508 25,900 Kansas City Southern Industries, Inc. 1 401,450 12,090 Kaydon Corp. ......................... 373,944 17,600 KCS Energy, Inc. 1 ................... 234,432 20,100 Keane, Inc. 1 ........................ 275,169 5,300 Keithley Instruments, Inc. ........... 117,395 10,082 Kellwood Co. ......................... 439,071 7,600 Kelly Services, Inc. ................. 226,480 32,300 KEMET Corp. 1 ........................ 394,706 13,612 Kennametal, Inc. ..................... 623,430 2,650 Kenneth Cole Productions, Inc.-- Class A ............................. 90,816 4,100 Kensey Nash Corp. 1 .................. 141,450 9,100 Keryx Biopharmaceuticals, Inc. 1 ..... 115,206 47,900 Key Energy Services, Inc. 1 .......... 452,176 7,700 Keynote Systems, Inc. 1 .............. 105,875 5,100 Keystone Automotive Industries, Inc. 1 142,239 9,900 Keystone Property Trust .............. 237,897 8,100 Kforce, Inc. 1 ....................... 76,464 14,800 KFx, Inc. 1,2 ........................ 112,776 12,300 Kilroy Realty Corp., REIT ............ 419,430 8,100 Kimball International, Inc.--Class B . 119,475 9,800 Kindred Healthcare, Inc. 1 ........... 258,230 SHARES SECURITY VALUE - ------------------------------------------------------------------ 7,636 Kirby Corp. 1 ........................ $ 297,040 5,400 Kirkland's, Inc. 1 ................... 64,422 10,100 KNBT Bancorp, Inc. ................... 168,670 45,500 Knight Trading Group, Inc. 1 ......... 455,910 9,952 Knight Transportation, Inc. 1 ........ 285,921 8,700 Koger Equity, Inc. 1 ................. 201,144 10,600 Komag, Inc. 1 ........................ 148,082 31,700 Kopin Corp. 1 ........................ 161,987 11,623 Korn/Ferry International 1 ........... 225,138 4,500 KOS Pharmaceuticals, Inc. 1 .......... 148,365 9,600 Kosan Biosciences, Inc. 1 ............ 75,840 7,200 Kramont Realty Trust ................. 115,200 20,500 Krispy Kreme Doughnuts, Inc. 1 ....... 391,345 13,400 Kroll, Inc. 1 ........................ 494,192 1,181 Kronos Worldwide, Inc. ............... 40,401 12,421 Kronos, Inc. 1 ....................... 511,745 19,000 Kulicke & Soffa Industries, Inc. 1 ... 208,240 6,500 KVH Industries, Inc. 1,2 ............. 82,745 8,400 Kyphon, Inc. 1 ....................... 236,712 69,475 La Quinta Corp. 1 .................... 583,590 18,800 La-Z-Boy, Inc. ....................... 338,024 7,100 LabOne, Inc. 1 ....................... 225,638 15,300 Labor Ready, Inc. 1 .................. 237,150 18,800 LaBranche & Co., Inc. ................ 158,296 6,500 Laclede Group, Inc. .................. 178,165 38,400 Laidlaw International, Inc. 1 ........ 497,664 2,849 Lakeland Bancorp, Inc. ............... 45,983 1,300 Lakeland Financial Corp. ............. 43,550 7,100 Lakes Entertainment, Inc. 1 .......... 82,289 9,600 Lancaster Colony Corp. ............... 399,744 11,600 Lance, Inc. .......................... 178,640 7,100 Landamerica Financial Group .......... 276,403 3,600 Landauer, Inc. ....................... 160,776 8,100 Landry's Restaurants, Inc. ........... 242,109 11,924 Landstar System, Inc. 1 .............. 630,422 1,950 Lannett Co., Inc. 1 .................. 29,289 10,500 LaSalle Hotel Properties ............. 256,200 6,500 Laserscope 1 ......................... 179,075 40,900 Lattice Semiconductor Corp. 1 ........ 286,709 1,100 Lawson Products, Inc. ................ 41,965 19,100 Lawson Software, Inc. 1 .............. 135,228 2,700 Layne Christensen Co. 1 .............. 44,685 4,400 LCA-Vision, Inc. 1 ................... 128,172 9,900 Leapfrog Enterprises, Inc. 1 ......... 196,911 3,583 Learning Tree International, Inc. 1 .. 51,989 4,700 LECG Corp. 1 ......................... 81,357 18,918 Lennox International, Inc. ........... 342,416 8,500 Leucadia National Corp.-- Contingent Sale Rights 1 ............ -- 7,125 Levitt Corp.--Class A 1 .............. 183,540 26,000 Lexar Media, Inc. 1 .................. 173,680 22,922 Lexicon Genetics, Inc. 1 ............. 179,708 16,600 Lexington Corp. Properties Trust, REIT 330,506 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 16 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 5,400 Libbey, Inc. ......................... $ 149,904 7,075 Liberty Corp. ........................ 332,171 12,200 LifeCell Corp. 1 ..................... 137,738 3,400 Lifeline Systems, Inc. 1 ............. 80,444 14,300 LifePoint Hospitals, Inc. 1 .......... 532,246 2,000 Lifetime Hoan Corp. .................. 45,580 27,700 Ligand Pharmaceuticals, Inc.-- Class B 1,2 ......................... 481,426 10,000 Lin TV Corp.--Class A 1 .............. 212,000 13,674 Lincoln Electric Co. ................. 466,147 5,050 Lindsay Manufacturing Co. ............ 121,301 16,800 Linens 'n Things, Inc. 1 ............. 492,408 16,400 Lionbridge Technologies, Inc. 1 ...... 125,460 6,500 Lithia Motors, Inc.--Class A ......... 161,070 8,586 Littelfuse, Inc. 1 ................... 364,132 4,600 LKQ Corp. 1 .......................... 85,238 6,000 LNR Property Corp. ................... 325,500 5,254 LodgeNet Entertainment Corp. 1 ....... 86,691 7,000 Lone Star Steakhouse & Saloon, Inc. .. 190,330 10,736 Lone Star Technologies, Inc. 1 ....... 295,884 11,283 Longs Drug Stores Corp. .............. 269,325 19,300 Longview Fibre Co. 1 ................. 284,289 38,800 LookSmart Ltd. 1 ..................... 84,196 6,975 LSI Industries, Inc. ................. 80,213 7,600 LTC Properties, Inc., REIT ........... 126,160 22,674 LTX Corp. 1 .......................... 245,106 1,600 Lufkin Industries, Inc. .............. 51,168 11,800 Luminent Mortgage Capital, Inc., REIT ................................ 141,600 8,900 Luminex Corp. 1 ...................... 89,534 5,200 M&F Worldwide Corp. 1 ................ 71,240 4,300 M/I Schottenstein Homes, Inc. ........ 174,580 2,241 Macatawa Bank Corp. .................. 61,605 11,203 MacDermid, Inc. ...................... 379,222 18,400 Macrovision Corp. 1 .................. 460,552 11,260 MAF Bancorp, Inc. .................... 480,577 9,700 Magellan Health Services, Inc. 1 ..... 324,465 9,200 Magma Design Automation, Inc. 1 ...... 176,916 19,100 Magna Entertainment Corp.,-- Class A 1,2 ......................... 112,690 6,700 MagneTek, Inc. 1 ..................... 55,878 25,800 Magnum Hunter Resources, Inc. 1 ...... 267,804 11,600 Maguire Properties, Inc. ............. 287,332 7,100 Main Street Banks, Inc. .............. 199,510 2,167 MainSource Financial Group, Inc. ..... 43,990 11,000 Manhattan Associates, Inc. 1 ......... 339,680 9,977 Manitowoc Co., Inc. .................. 337,721 6,300 ManTech International Corp.-- Class A 1 ........................... 118,251 8,200 Manufactured Home Communities, Inc. ................... 272,158 SHARES SECURITY VALUE - ------------------------------------------------------------------ 24,900 Manugistics Group, Inc. 1 ............ $ 81,423 9,600 MAPICS, Inc. 1 ....................... 101,376 6,700 MapInfo Corp. 1 ...................... 71,020 6,150 Marcus Corp. ......................... 106,088 6,200 Marimba, Inc. 1 ...................... 50,406 3,300 Marine Products Corp. ................ 61,215 4,100 MarineMax, Inc. 1 .................... 117,588 2,300 Marten Transport Ltd. 1 .............. 42,895 6,822 Martha Stewart Living Omnimedia, Inc. 1,2 ................. 61,398 3,800 MascoTech, Inc.--Entitlement 1 ....... -- 7,700 MasTec, Inc. 1 ....................... 41,811 4,800 Matria Healthcare, Inc. 1 ............ 120,336 8,200 Matrix Service Co. 1 ................. 75,030 20,500 MatrixOne, Inc. 1 .................... 141,655 11,500 Matthews International Corp.-- Class A ............................. 378,810 16,700 Mattson Technology, Inc. 1 ........... 200,734 1,900 Maui Land & Pineapple Co., Inc. 1 .... 64,600 15,783 Maverick Tube Corp. 1 ................ 414,462 12,300 Maxim Pharmaceuticals, Inc. 1 ........ 118,695 6,500 MAXIMUS, Inc. 1 ...................... 230,490 6,900 Maxwell Shoe Co., Inc. 1 ............. 160,356 3,400 Maxwell Technologies, Inc. 1 ......... 43,860 8,100 Maxygen, Inc. 1 ...................... 85,617 8,200 MB Financial, Inc. ................... 301,842 4,000 MBT Financial Corp. .................. 72,880 43,100 McDATA Corp.--Class A 1 .............. 231,878 11,600 MCG Capital Corp. .................... 178,408 2,800 McGrath Rentcorp ..................... 103,460 6,200 McMoRan Exploration Co. 1,2 .......... 96,596 3,400 Measurement Specialties, Inc. 1 ...... 73,440 29,800 Medarex, Inc. 1,2 .................... 217,242 3,100 MedCath Corp. 1 ...................... 62,000 27,300 Mediacom Communications Corp. 1 ...... 213,486 4,400 Medical Action Industries, Inc. 1 .... 80,960 4,800 Medical Staffing Network Holdings, Inc. 1 .................... 30,912 17,800 Medicines Co. 1 ...................... 543,078 4,465 Medis Technologies Ltd. 1,2 .......... 72,422 3,172 MemberWorks, Inc. 1 .................. 93,955 11,792 Men's Wearhouse, Inc. 1 .............. 311,191 16,192 Mentor Corp. ......................... 555,224 26,200 Mentor Graphics Corp. 1 .............. 405,314 3,570 Mercantile Bank Corp. ................ 130,127 9,022 Mercury Computer Systems, Inc. 1 ..... 223,746 3,100 Merge Technologies, Inc. 1 ........... 45,353 20,400 Meridian Resource Corp. 1 ............ 141,576 30,044 Meristar Hospitality Corp. 1 ......... 205,501 9,944 Merit Medical Systems, Inc. 1 ........ 158,408 3,700 Meritage Corp. 1 ..................... 254,560 7,200 Merix Corp. 1 ........................ 81,648 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 17 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 13,400 Mesa Air Group, Inc. 1 ............... $ 108,406 7,400 Metal Management, Inc. 1 ............. 146,594 7,000 Metals USA, Inc. 1 ................... 125,160 12,228 Methode Electronics, Inc.--Class A ... 158,597 11,100 Metris Cos., Inc. 1 .................. 96,459 1,900 Metrocall Holdings, Inc. 1 ........... 127,300 5,000 Metrologic Instruments, Inc. 1 ....... 99,700 31,900 MFA Mortgage Investments, Inc. ....... 283,910 6,000 MGE Energy, Inc. ..................... 195,780 1,900 MGP Ingredients, Inc. ................ 73,511 24,900 Micrel, Inc. 1 ....................... 302,535 28,500 Micromuse, Inc. 1 .................... 190,665 6,883 MICROS Systems, Inc. 1 ............... 330,178 22,988 Microsemi Corp. 1 .................... 326,659 4,300 MicroStrategy, Inc.--Class A 1 ....... 183,610 13,900 Microtek Medical Holdings, Inc. 1 .... 71,168 17,200 Microtune, Inc. 1 .................... 80,324 8,500 Microvision, Inc. 1 .................. 71,400 8,100 Mid-America Apartment Communities, Inc. ................... 306,909 9,600 Mid-State Bancshares ................. 225,696 6,000 Midas, Inc. 1 ........................ 104,400 2,000 Middleby Corp. (The) ................. 109,240 2,533 Middlesex Water Co. .................. 49,090 2,400 Midland Co. .......................... 71,160 13,959 Midway Games, Inc. 1,2 ............... 160,808 5,100 Midwest Banc Holdings, Inc. .......... 113,730 18,498 Milacron, Inc. 1 ..................... 73,992 24,231 Millennium Chemicals, Inc. 1 ......... 419,681 37,400 Mindspeed Technologies, Inc. 1 ....... 185,504 8,600 Mine Safety Appliances Co. ........... 289,820 7,368 Minerals Technologies, Inc. .......... 427,344 17,800 MIPS Technologies, Inc. 1 ............ 108,936 17,600 Mission Resources Corp. 1 ............ 100,320 8,100 Mission West Properties, Inc. ........ 98,091 11,800 MKS Instruments, Inc. 1 .............. 269,276 6,674 Mobile Mini, Inc. 1 .................. 189,608 10,700 Mobility Electronics, Inc 1 .......... 90,094 10,106 Modine Manufacturing Co. ............. 321,876 6,200 Molecular Devices Corp. 1 ............ 110,236 3,500 Molina Healthcare, Inc. 1 ............ 133,630 9,875 Monaco Coach Corp. ................... 278,179 11,600 Monolithic Systems Technology, Inc. 1 87,348 3,750 Monro Muffler Brake, Inc. 1 .......... 90,975 18,200 MONY Group, Inc. (The) 1 ............. 569,660 10,050 Moog, Inc.--Class A 1 ................ 372,956 4,200 Movado Group, Inc. ................... 72,450 11,025 Movie Gallery, Inc. .................. 215,539 38,772 MPS Group, Inc. 1 .................... 469,917 7,420 MRO Software, Inc. 1 ................. 100,986 39,834 MRV Communications, Inc. 1 ........... 109,145 10,100 MSC Software Corp. 1 ................. 90,395 SHARES SECURITY VALUE - ------------------------------------------------------------------ 2,500 MTC Technologies, Inc. 1 ............. $ 64,550 9,900 MTR Gaming Group, Inc. 1 ............. 108,405 9,100 MTS Systems Corp. .................... 213,395 14,100 Mueller Industries, Inc. ............. 504,780 8,500 Multimedia Games, Inc. 1,2 ........... 227,970 6,872 Myers Industries, Inc. ............... 96,895 14,800 Mykrolis Corp. 1 ..................... 257,816 11,300 Myriad Genetics, Inc. 1 .............. 168,596 23,033 Nabi Biopharmaceuticals 1 ............ 327,529 1,725 NACCO Industries, Inc.--Class A ...... 163,875 14,500 Nanogen, Inc. 1 ...................... 97,440 8,800 Nara Bancorp, Inc. ................... 150,744 5,800 Nash Finch Co. ....................... 145,174 1,000 National Beverage Corp. .............. 9,930 12,200 National Financial Partners Corp. .... 430,294 10,500 National Health Investors, Inc. ...... 285,495 2,000 National Healthcare Corp. ............ 56,020 10,453 National Penn Bancshares, Inc. ....... 310,872 1,100 National Presto Industries, Inc. ..... 45,353 4,100 National Processing, Inc. 1 .......... 117,875 700 National Western Life Insurance Co.--Class A 1 ...................... 107,485 27,900 Nationwide Health Properties, Inc. ... 527,310 3,900 Nature's Sunshine Products, Inc. ..... 55,536 10,675 Nautilus Group, Inc. 2 ............... 208,269 8,800 Navarre Corp. 1 ...................... 126,632 17,175 Navigant Consulting, Inc. 1 .......... 368,232 6,600 Navigant International, Inc. 1,2 ..... 117,414 2,600 Navigators Group, Inc. (The) 1 ....... 75,114 1,233 NBC Capital Corp. .................... 33,279 15,097 NBT Bancorp, Inc. .................... 337,267 8,300 NCI Building Systems, Inc. 1 ......... 270,165 9,611 NCO Group, Inc. 1 .................... 256,518 700 NCP Litigation Trust Entitlements 1 .. -- 13,389 NDCHealth Corp. ...................... 310,625 14,100 NeighborCare, Inc. 1 ................. 441,753 3,500 Neoforma, Inc. 1 ..................... 42,490 7,886 NeoPharm, Inc. 1 ..................... 81,462 6,622 Neose Technologies, Inc. 1 ........... 55,161 20,972 Net IQ Corp. 1 ....................... 276,830 17,896 Net.B@nk, Inc. ....................... 195,603 16,100 Net2Phone, Inc. 1 .................... 72,933 13,253 Netegrity, Inc. 1 .................... 112,120 7,200 NETGEAR, Inc. 1 ...................... 77,328 4,200 Netratings, Inc. 1 ................... 68,418 7,200 Netscout Systems, Inc. 1 ............. 47,448 9,500 Network Equipment Technologies, Inc. 1 ................ 77,520 7,900 Neurogen Corp. 1 ..................... 59,092 10,600 New Century Financial Corp. .......... 496,292 11,850 New Jersey Resources Corp. ........... 492,723 14,300 Newcastle Investment Corp. ........... 428,285 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 18 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 5,700 NewMarket Corp. 1 .................... $ 122,379 28,825 Newpark Resources, Inc. 1 ............ 178,715 14,700 Newport Corp. 1 ...................... 237,699 3,300 Nexstar Broadcasting Group, Inc.-- Class A 1 ........................... 36,234 13,700 NIC, Inc. 1 .......................... 98,229 15,800 Nicor, Inc. .......................... 536,726 2,300 NL Industries, Inc. .................. 33,350 19,600 NMS Communications Corp. 1 ........... 144,648 6,600 NN, Inc. ............................. 83,886 3,000 Noble International Ltd. ............. 74,310 10,900 Nordson Corp. ........................ 472,733 4,900 North Pittsburgh Systems, Inc. ....... 98,245 8,300 Northfield Laboratories, Inc. 1 ...... 118,358 30,100 Northwest Airlines Corp. 1,2 ......... 334,712 5,900 Northwest Bancorp, Inc. .............. 135,110 12,107 Northwest Natural Gas Co. ............ 369,264 9,200 Novastar Financial, Inc., REIT 2 ..... 349,232 6,800 Novatel Wireless, Inc. 1 ............. 180,200 9,500 Noven Pharmaceuticals, Inc. 1 ........ 209,190 13,770 NPS Pharmaceuticals, Inc. 1 .......... 289,170 7,576 NS Group, Inc. 1 ..................... 124,549 19,444 Nu Skin Enterprises, Inc. ............ 492,322 8,400 NUI Corp. ............................ 122,640 3,700 Nutraceutical International Corp. 1 .. 78,847 11,833 Nuvelo, Inc. 1 ....................... 113,833 500 NYMAGIC, Inc. ........................ 13,200 10,100 O'Charley's, Inc. 1 .................. 173,619 8,500 Oakley, Inc. ......................... 109,990 3,500 Ocean Financial Corp. ................ 83,825 9,300 Oceaneering International, Inc. 1 .... 318,525 5,100 Octel Corp. .......................... 134,283 7,500 Ocular Sciences, Inc. 1 .............. 285,000 16,600 Ocwen Financial Corp. 1 .............. 199,864 13,375 Odyssey Healthcare, Inc. 1 ........... 251,718 7,200 Offshore Logistics, Inc. 1 ........... 202,464 23,942 Ohio Casualty Corp. 1 ................ 481,952 9,200 Oil States International, Inc. 1 ..... 140,760 7,200 Old Dominion Freight Line, Inc. 1 .... 212,256 24,000 Old National Bancorp ................. 595,920 1,899 Old Second Bancorp, Inc. ............. 100,172 25,954 Olin Corp. ........................... 457,309 10,600 OM Group, Inc. 1 ..................... 349,906 1,900 Omega Financial Corp. ................ 65,417 15,700 OMEGA Healthcare Investors, Inc. ..... 157,628 9,200 Omnicell, Inc. 1 ..................... 134,412 20,700 OmniVision Technologies, Inc. 1 ...... 330,165 12,700 Omnova Solutions, Inc. 1 ............. 77,470 48,100 ON Semiconductor Corp. 1 ............. 241,462 13,100 Onyx Pharmaceuticals, Inc. 1 ......... 554,916 4,100 Open Solutions, Inc. 1 ............... 102,418 23,966 Openwave Systems, Inc. 1 ............. 304,368 SHARES SECURITY VALUE - ------------------------------------------------------------------ 47,400 Oplink Communications, Inc. 1 ........ $ 91,008 5,700 OPNET Technologies, Inc. 1 ........... 74,670 19,400 Opsware, Inc. 1,2 .................... 153,648 8,100 Optical Communication Products, Inc. 1 19,764 6,800 Option Care, Inc. .................... 103,768 17,400 Orasure Technologies, Inc. 1 ......... 169,302 18,160 Orbital Sciences Corp. 1 ............. 250,790 5,300 Orbitz, Inc.--Class A 1 .............. 114,586 10,800 Oregon Steel Mills, Inc. 1 ........... 159,192 6,302 Oriental Financial Group, Inc. ....... 170,595 1,500 Orleans Homebuilders, Inc. 1 ......... 28,905 15,800 Orthodontic Centers of America, Inc. 1,2 129,402 15,500 OrthoLogic Corp. 1 ................... 134,385 18,700 Orthovita, Inc. 1 .................... 96,118 25,000 Oscient Pharmaceuticals Corp. 1 ...... 127,750 4,208 Oshkosh B'Gosh, Inc.--Class A ........ 105,074 6,300 OSI Systems, Inc. 1 .................. 125,559 9,000 Otter Tail Power Co. ................. 241,740 5,400 Overland Storage, Inc. 1 ............. 71,766 9,800 Overnite Corp. ....................... 288,120 9,800 Overseas Shipholding Group, Inc. ..... 432,474 4,100 Overstock.com, Inc. 1 ................ 160,228 14,300 Owens & Minor, Inc., Holding Co. ..... 370,370 4,700 Oxford Industries, Inc. .............. 204,732 1,300 P.A.M. Transportation Services, Inc. 1 24,830 9,572 P.F. Chang's China Bistro, Inc. 1 .... 393,888 11,000 Pacer International, Inc. 1 .......... 203,500 16,944 Pacific Capital Bancorp .............. 476,635 11,800 Packeteer, Inc. 1 .................... 190,570 11,400 Pain Therapeutics, Inc. 1 ............ 91,884 22,700 Palatin Technologies, Inc. 1 ......... 95,567 4,850 Palm Harbor Homes, Inc. 1 ............ 85,991 15,798 PalmOne, Inc. 1,2 .................... 549,296 6,787 PalmSource, Inc. 1 ................... 116,329 5,500 Palomar Medical Technologies, Inc. 1 . 92,345 10,600 Panera Bread Co.--Class A 1,2 ........ 380,328 3,700 Pantry, Inc. (The) 1 ................. 80,660 4,306 Papa John's International, Inc. 1,2 .. 127,199 12,700 Par Pharmaceutical Cos., Inc. 1 ...... 447,167 13,200 Paradyne Networks, Inc. 1 ............ 72,600 99,900 Parametric Technology Corp. 1 ........ 499,500 11,260 PAREXEL International Corp. 1 ........ 222,948 6,387 Park Electrochemical Corp. ........... 161,272 4,900 Park National Corp. .................. 625,779 32,400 Parker Drilling Co. 1 ................ 123,768 4,100 Parkway Properties, Inc. ............. 182,245 2,100 Partners Trust Financial Group, Inc. . 41,160 5,200 Party City Corp. 1 ................... 64,948 13,900 Pathmark Stores, Inc. 1 .............. 105,918 13,750 Paxar Corp. 1 ........................ 268,400 21,000 Paxson Communications Corp. 1 ........ 68,250 25,400 Payless ShoeSource, Inc. 1 ........... 378,714 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 19 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 3,250 PC Connection, Inc. 1 ................ $ 21,385 3,700 PC Mall, Inc. 1 ...................... 69,856 10,000 PC-Tel, Inc. 1 ....................... 118,000 6,300 PDF Solutions, Inc. 1 ................ 53,361 3,600 PDI, Inc. 1 .......................... 109,188 1,630 Peapack-Gladstone Financial Corp. .... 52,356 5,200 PEC Solutions, Inc. 1 ................ 62,036 9,100 Pediatrix Medical Group, Inc. 1 ...... 635,635 5,600 Peet's Coffee & Tea, Inc. 1 .......... 139,944 10,404 Pegasus Systems, Inc. 1 .............. 136,605 4,400 Pegasystems, Inc. 1 .................. 38,500 3,074 Penn Engineering & Manufacturing Corp. ................. 65,907 12,300 Penn National Gaming, Inc. 1 ......... 408,360 6,200 Penn Virginia Corp. .................. 223,882 5,100 Penn-America Group, Inc. ............. 71,400 2,300 PennFed Financial Services, Inc. ..... 78,200 2,056 PennRock Financial Services Corp. .... 62,091 12,812 Pennsylvania Real Estate Investment Trust, REIT .............. 438,811 7,900 Penwest Pharmaceuticals Co. 1 ........ 101,199 5,895 Peoples Bancorp, Inc. ................ 156,748 13,500 Peoples Energy Corp. ................. 569,025 2,000 Peoples Holding Co. .................. 69,120 21,600 Pep Boys--Manny, Moe, & Jack ......... 547,560 10,133 Per-Se Technologies, Inc. 1 .......... 147,334 42,200 Peregrine Pharmaceuticals 1 .......... 62,034 16,900 Performance Food Group Co. 1 ......... 448,526 11,100 Pericom Semiconductor Corp. 1 ........ 118,881 4,600 Perini Corp. 1 ....................... 49,082 30,800 Perot Systems Corp.--Class A 1 ....... 408,716 25,098 Perrigo Co. .......................... 476,109 2,900 Perry Ellis International, Inc. 1 .... 73,254 5,400 PetMed Express, Inc. 1 ............... 43,303 7,100 Petroleum Development Corp. 1 ........ 194,682 4,660 PFF Bancorp, Inc. .................... 173,538 8,700 Pharmacyclics, Inc. 1 ................ 88,479 4,500 Pharmion Corp. 1 ..................... 220,140 30,900 Pharmos Corp. 1 ...................... 126,999 7,000 Philadelphia Consolidated Holding Corp. 1 ..................... 420,490 9,800 Phillips-Van Heusen Corp. ............ 188,650 35,300 Phoenix Cos., Inc. (The) 2 ........... 432,425 6,241 Photon Dynamics, Inc. 1 .............. 218,872 12,168 Photronics, Inc. 1 ................... 230,462 2,400 PICO Holdings, Inc. 1 ................ 45,886 13,700 Piedmont Natural Gas Co., Inc. ....... 584,990 6,000 Pinnacle Airlines Corp. 1 ............ 67,800 12,900 Pinnacle Entertainment, Inc. 1 ....... 162,669 27,612 Pinnacle Systems, Inc. 1 ............. 197,426 7,200 Piper Jaffray Cos., Inc. 1 ........... 325,656 14,900 Pixelworks, Inc. 1 ................... 228,268 SHARES SECURITY VALUE - ------------------------------------------------------------------ 28,716 Plains Exploration & Production Co. 1 $ 526,939 10,000 Plains Resources, Inc. 1 ............. 169,500 7,300 Planar Systems, Inc. 1 ............... 97,747 10,200 PLATO Learning, Inc. 1 ............... 101,082 5,760 Playboy Enterprises, Inc.--Class B 1 . 66,874 16,100 Playtex Products, Inc. 1 ............. 125,902 15,724 Plexus Corp. 1 ....................... 212,274 17,171 Plug Power, Inc. 1 ................... 128,439 8,300 PLX Technology, Inc. 1 ............... 143,258 12,100 PMA Capital Corp.--Class A ........... 108,900 23,469 PNM Resources, Inc. .................. 487,451 9,400 Polymedica Corp. ..................... 291,776 35,862 Polyone Corp. 1 ...................... 266,813 7,576 Pope & Talbot, Inc. .................. 149,778 15,100 Portal Software, Inc. 1 .............. 54,813 5,700 Portfolio Recovery Associates, Inc. 1 157,149 6,700 Possis Medical, Inc. 1 ............... 228,805 13,900 Post Properties, Inc. ................ 405,185 10,968 Potlatch Corp. ....................... 456,708 2,300 Powell Industries, Inc. 1 ............ 39,284 10,300 Power Integrations, Inc. 1 ........... 256,470 25,300 Power-One, Inc. 1 .................... 277,794 38,400 Powerwave Technologies, Inc. 1 ....... 295,680 10,600 Pozen, Inc. 1 ........................ 72,504 20,900 PRAECIS Pharmaceuticals, Inc. 1 ...... 79,420 5,200 Pre-Paid Legal Services, Inc. 1,2 .... 123,916 16,000 Prentiss Properties Trust, REIT ...... 536,320 10,000 Presidential Life Corp. .............. 180,200 11,800 Presstek, Inc. 1 ..................... 124,018 17,197 PRG-Schultz International, Inc. 1 .... 94,068 14,963 Price Communications Corp. 1 ......... 220,854 7,400 Price Legacy Corp., REIT ............. 136,604 8,716 Priceline.com, Inc. 1,2 .............. 234,722 4,222 Prima Energy Corp. 1 ................. 167,065 17,200 Prime Hospitality Corp. 1 ............ 182,664 55,800 PRIMEDIA, Inc. 1 ..................... 155,124 30,200 Primus Telecommunications Group, Inc. 1 ....................... 153,416 12,200 Priority Healthcare Corp.--Class B 1 . 279,990 6,900 PrivateBancorp, Inc. ................. 189,474 9,293 Proassurance Corp. 1 ................. 316,984 2,000 Procurenet 1 ......................... -- 5,500 Progenics Pharmaceuticals, Inc. 1 .... 92,620 12,994 Progress Software Corp. 1 ............ 281,580 9,300 Proquest Co. 1 ....................... 253,425 7,500 Prosperity Bancshares, Inc. .......... 182,625 2,400 Provide Commerce, Inc. 1 ............. 47,304 12,578 Provident Bancorp, Inc. .............. 143,389 12,097 Provident Bankshares Corp. ........... 348,888 2,100 Provident Financial Holdings, Inc. ... 49,665 21,900 Provident Financial Services, Inc. ... 384,345 18,027 Province Healthcare Co. 1 ............ 309,163 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 20 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 6,400 PS Business Parks, Inc. .............. $ 257,536 25,163 PSS World Medical, Inc. 1 ............ 281,826 4,300 Psychiatric Solutions, Inc. 1 ........ 107,199 18,800 PTEK Holdings, Inc. 1 ................ 216,764 2,600 Pulitzer, Inc. ....................... 127,140 5,500 QAD, Inc. 1 .......................... 58,355 2,600 Quaker Chemical Corp. ................ 71,812 2,600 Quaker City Bancorp, Inc. ............ 142,844 1,800 Quality Systems, Inc. 1 .............. 88,362 6,100 Quanex Corp. ......................... 297,070 26,900 Quanta Services, Inc. 1 .............. 167,318 65,000 Quantum Corp. 1 ...................... 201,500 18,000 Quest Software, Inc. 1 ............... 232,200 5,500 Quicksilver Resources, Inc. 1 ........ 368,885 20,800 Quicksilver, Inc. 1 .................. 495,248 14,100 Quidel Corp. 1 ....................... 83,049 4,000 Quixote Corp. ........................ 80,200 10,350 R&G Financial Corp.--Class B ......... 342,171 8,400 R.H. Donnelley Corp. 1 ............... 367,416 8,274 RadiSys Corp. 1 ...................... 153,648 14,900 RAE Systems, Inc. 1 .................. 80,460 12,400 RailAmerica, Inc. 1 .................. 181,040 11,100 RAIT Investment Trust, REIT .......... 273,615 10,860 Ralcorp Holdings, Inc. 1 ............. 382,272 5,200 Ramco-Gershenson Properties Trust, REIT ......................... 125,996 24,600 Range Resources Corp. ................ 359,160 12,175 RARE Hospitality International, Inc. 1 303,158 2,600 Raven Industries, Inc. ............... 92,378 12,800 Rayovac Corp. 1 ...................... 359,680 6,100 RC2 Corp. 1 .......................... 216,550 38,300 Reader's Digest Association, Inc. (The) 612,417 5,400 Reading International, Inc.--Class A 1 46,980 40,700 RealNetworks, Inc. 1 ................. 278,388 14,300 Realty Income Corp., REIT ............ 596,739 4,600 Red Robin Gourmet Burgers 1 .......... 125,902 14,600 Redback Networks, Inc. 1 ............. 93,586 5,800 Redwood Trust, Inc. .................. 322,944 11,400 Regal-Beloit Corp. ................... 253,764 10,900 Regeneration Technologies, Inc. 1 .... 116,957 13,400 Regeneron Pharmaceuticals, Inc. 1 .... 141,102 11,200 Regent Communications, Inc. 1 ........ 69,328 7,100 RehabCare Group, Inc. 1 .............. 189,073 10,550 Reliance Steel & Aluminum Co. ........ 425,376 24,448 Remec, Inc. 1 ........................ 154,511 7,400 Remington Oil & Gas Corp. 1 .......... 174,640 3,000 Renaissance Learning, Inc. ........... 67,260 9,961 Rent-Way, Inc. 1 ..................... 89,649 27,040 Republic Bancorp, Inc. ............... 375,856 1,655 Republic Bancorp, Inc.--Class A ...... 33,414 5,500 Res-Care, Inc. 1 ..................... 69,850 4,800 Resource America, Inc.--Class A ...... 113,280 SHARES SECURITY VALUE - ------------------------------------------------------------------ 8,800 Resources Connection, Inc. 1 ......... $ 344,168 11,200 Restoration Hardware, Inc. 1 ......... 81,872 24,800 Retek, Inc. 1 ........................ 152,272 58,900 Revlon 1 ............................. 173,755 8,700 Rewards Network, Inc. 1 .............. 78,300 69,400 RF Micro Devices, Inc. 1,2 ........... 520,500 5,974 Riggs National Corp. ................. 126,171 1,100 Riviana Foods, Inc. .................. 28,787 7,800 RLI Corp. ............................ 284,700 3,800 Robbins & Myers, Inc. ................ 85,310 3,783 Robert Mondavi Corp.--Class A 1 ...... 140,047 9,500 Rock-Tenn Co.--Class A ............... 161,025 6,500 Rofin-Sinar Technologies, Inc. 1 ..... 165,035 6,700 Rogers Corp. 1 ....................... 468,330 9,050 Rollins, Inc. ........................ 208,241 315 Royal Bancshares of Pennsylvania, Inc.--Class A ....................... 7,812 6,100 Royal Gold, Inc. 2 ................... 86,437 2,100 RPC, Inc. ............................ 33,201 23,000 RSA Security, Inc. 1 ................. 470,810 8,000 RTI International Metals, Inc. 1 ..... 127,600 14,000 Ruddick Corp. ........................ 314,300 5,900 Rudolph Technologies, Inc. 1 ......... 107,321 4,800 Russ Berrie & Co., Inc. .............. 93,264 10,500 Russell Corp. ........................ 188,580 18,350 Ryan's Restaurant Group, Inc. 1 ...... 289,930 10,788 Ryerson Tull, Inc.--Class A .......... 171,313 28,500 S Corp. 1 ............................ 283,290 8,860 S&T Bancorp, Inc. .................... 283,343 3,400 S.Y. Bancorp, Inc. ................... 79,594 46,400 Safeguard Scientifics, Inc. 1 ........ 106,720 8,673 SafeNet, Inc. 1 ...................... 240,069 2,700 Safety Insurance Group, Inc. ......... 57,834 5,950 SAGA Communications, Inc.-- .......... Class A 1 ........................... 108,588 3,218 Salem Communications Corp. 1 ......... 87,304 9,500 Salix Pharmaceuticals Ltd. 1 ......... 313,025 3,200 Sanders Morris Harris Group, Inc. .... 47,200 3,850 Sanderson Farms, Inc. ................ 206,437 7,200 Sandy Spring Bancorp, Inc. ........... 250,200 1,210 Santander BanCorp .................... 29,911 3,600 Santarus, Inc. 1 ..................... 53,100 30,200 Sapient Corp. 1 ...................... 181,502 2,600 Sauer, Inc. .......................... 44,382 3,500 Saul Centers, Inc. ................... 112,385 11,800 Saxon Capital, Inc. 1 ................ 269,394 19,600 SBA Communications Corp. 1 ........... 87,220 7,308 SBS Technologies, Inc. 1 ............. 117,440 31,036 Scansoft, Inc. 1 ..................... 153,628 4,500 ScanSource, Inc. 1 ................... 267,390 1,890 SCBT Financial Corp. ................. 56,984 1,400 Schawk, Inc. ......................... 19,558 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 21 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 7,050 Schnitzer Steel Industries, Inc.-- Class A ............................. $ 239,418 10,700 Scholastic Corp. 1 ................... 320,465 7,200 School Speciality, Inc. 1 ............ 261,432 13,300 Schulman, Inc. ....................... 285,817 5,000 Schweitzer-Mauduit International, Inc. 153,150 21,100 SciClone Pharmaceuticals, Inc. 1 ..... 107,821 20,700 Scientific Games Corp.--Class A 1 .... 396,198 13,262 SCP Pool Corp. ....................... 596,790 6,849 SCS Transportation, Inc. 1 ........... 180,745 100 Seaboard Corp. ....................... 49,795 4,600 Seabulk International, Inc. 1 ........ 37,950 9,100 SeaChange International, Inc. 1 ...... 153,608 4,760 Seacoast Banking Corp. of Florida .... 99,627 12,200 Seacoast Financial Services Corp. .... 422,120 6,550 Seacor SMIT, Inc. 1 .................. 287,742 13,600 Seattle Genetics, Inc. 1 ............. 95,608 4,500 Second Bancorp, Inc. ................. 140,805 12,937 Secure Computing Corp. 1 ............. 150,716 800 Security Bank Corp. .................. 27,800 21,700 Seebeyond Technology Corp. 1 ......... 81,809 14,300 Select Comfort Corp. 1 ............... 406,120 34,500 Select Medical Corp. ................. 462,990 11,600 Selective Insurance Group, Inc. ...... 462,608 8,000 Semitool, Inc. 1 ..................... 90,560 22,400 Senior Housing Properties Trust, REIT 376,096 17,533 Sensient Technologies ................ 376,609 2,000 Sequa Corp.--Class A 1 ............... 116,940 9,526 SERENA Software, Inc. 1 .............. 181,851 9,300 Serologicals Corp. 1 ................. 185,907 5,400 SFBC International, Inc. 1 ........... 169,182 4,400 Sharper Image Corp. 1 ................ 138,116 23,600 Shaw Group, Inc. 1 ................... 239,068 2,000 Shenandoah Telecommunications Co. .... 54,000 3,700 Shoe Carnival, Inc. 1 ................ 55,537 12,890 ShopKo Stores, Inc. 1 ................ 182,265 8,650 Shuffle Master, Inc. 1 ............... 314,082 1,900 SI International, Inc. 1 ............. 38,741 8,600 Sierra Health Services, Inc. 1 ....... 384,420 43,720 Sierra Pacific Resources 1 ........... 337,081 8,900 Sigmatel, Inc. 1 ..................... 258,634 5,000 Silgan Holdings, Inc. ................ 201,550 100,500 Silicon Graphics, Inc. 1,2 ........... 221,100 29,800 Silicon Image, Inc. 1 ................ 391,274 30,300 Silicon Storage Technology, Inc. 1 ... 312,090 12,800 Silicon Valley Bancshares 1 .......... 507,520 2,100 Siliconix, Inc. 1 .................... 104,202 4,500 Simmons First National Corp.-- Class A ............................. 117,135 7,200 SimpleTech, Inc. 1 ................... 24,552 6,500 Simpson Manufacturing Co., Inc. ...... 364,780 17,918 Sinclair Broadcast Group, Inc. ....... 184,018 SHARES SECURITY VALUE - ------------------------------------------------------------------ 10,506 SIPEX Corp. 1 ........................ $ 59,884 18,800 SITEL Corp. 1 ........................ 79,336 35,200 Six Flags, Inc. 1 .................... 255,552 1,600 SJW Corp. ............................ 54,400 8,989 Skechers USA, Inc.--Class A 1 ........ 116,857 2,100 Skyline Corp. ........................ 85,365 21,700 SkyWest, Inc. ........................ 377,797 55,900 Skyworks Solutions, Inc. 1 ........... 488,007 3,900 Smart & Final, Inc. 1 ................ 46,878 1,500 Smithtown Bancorp, Inc. .............. 61,020 28 SoftBrands, Inc. 1 ................... 34 8,000 Sohu.com, Inc. 1,2 ................... 159,040 11,400 Sola International, Inc. 1 ........... 196,422 10,500 Sonic Automotive, Inc. ............... 232,575 22,147 Sonic Corp. 1 ........................ 503,844 9,200 Sonic Innovations, Inc. 1 ............ 52,256 6,100 Sonic Solutions 1 .................... 129,625 21,100 SonicWALL, Inc. 1 .................... 181,460 5,928 SonoSite, Inc. 1 ..................... 141,738 80,700 Sonus Networks, Inc. 1 ............... 385,746 17,483 Sotheby's Holding, Inc.--Class A 1 ... 279,029 9,100 Source Interlink Cos., Inc. 1 ........ 101,192 6,383 SOURCECORP, Inc. 1 ................... 175,660 6,600 South Jersey Industries, Inc. ........ 290,400 3,000 Southern Community Financial Corp. ... 31,320 23,228 Southern Union Co. 1 ................. 489,646 2,055 Southside Bancshares, Inc. ........... 43,155 12,800 Southwest Bancorp of Texas ........... 564,736 6,600 Southwest Bancorp, Inc. .............. 120,450 14,312 Southwest Gas Corp. .................. 345,349 6,826 Southwest Water Co. .................. 85,462 14,800 Southwestern Energy Co. 1 ............ 424,316 7,000 Sovran Self Storage, Inc. ............ 267,260 15,298 Spanish Broadcasting System, Inc. 1 .. 142,424 9,000 Spartech Corp. ....................... 233,460 11,200 SpatiaLight, Inc. 1 .................. 67,760 3,000 Specialty Laboratories, Inc. 1 ....... 26,880 8,000 Spectralink Corp. .................... 119,200 5,554 Speedway Motorsports, Inc. ........... 185,726 22,543 Spherion Corp. 1 ..................... 228,586 9,380 Spinnaker Exploration Co. 1 .......... 369,384 8,249 Sports Authority, Inc. (The) 1 ....... 296,139 3,700 Sports Resorts International, Inc. 1 . 14,060 4,800 SPSS, Inc. 1 ......................... 86,256 4,500 SRA International, Inc.--Class A 1 ... 190,440 5,100 SS&C Technologies, Inc. .............. 95,370 11,700 St. Mary Land & Exploration Co. ...... 417,105 6,700 Stage Stores, Inc. 1 ................. 252,322 8,500 Stamps.com, Inc. ..................... 86,615 3,400 Standard Commercial Corp. ............ 61,370 6,161 Standard Microsystems Corp. 1 ........ 143,675 3,600 Standard Motor Products, Inc. ........ 53,028 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 22 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 5,200 Standard Register Co. ................ $ 61,880 3,600 Standex International Corp. .......... 97,920 2,800 Stanley Furniture Co., Inc. .......... 117,908 11,700 Star Scientific, Inc. 1 .............. 46,332 3,725 StarTek, Inc. ........................ 133,355 4,300 State Auto Financial Corp. ........... 132,096 1,881 State Bancorp, Inc. .................. 45,953 2,900 State Financial Services Corp.-- Class A ............................. 86,014 7,875 Steak n Shake Co. 1 .................. 143,483 13,930 Steel Dynamics, Inc. 1 ............... 398,816 3,100 Steel Technologies, Inc. ............. 68,448 10,196 Stein Mart, Inc. 1 ................... 165,787 2,300 Steinway Musical Instruments, Inc. 1 . 80,707 9,100 Stellent, Inc. 1 ..................... 77,714 1,200 Stephan Chemical Co. ................. 31,380 25,800 STERIS Corp. 1 ....................... 582,048 5,570 Sterling Bancorp ..................... 153,843 18,925 Sterling Bancshares, Inc. ............ 268,546 9,943 Sterling Financial Corp.-- Pennsylvania ........................ 258,816 9,859 Sterling Financial Corp.--Spokane 1 .. 314,206 4,500 Steven Madden Ltd. 1 ................. 89,865 12,400 Stewart & Stevenson Services, Inc. ... 222,208 39,900 Stewart Enterprises, Inc.--Class A 1 . 324,786 6,300 Stewart Information Services Corp. ... 212,751 16,325 Stillwater Mining Co. 1 .............. 245,038 8,679 Stone Energy Corp. 1 ................. 396,457 4,800 Stoneridge, Inc. 1 ................... 81,600 4,150 Stratasys, Inc. 1 .................... 102,754 32,300 Stratex Networks, Inc. 1 ............. 95,285 1,200 Strattec Security Corp. 1 ............ 82,116 5,160 Strayer Education, Inc. .............. 575,701 17,900 Stride Rite Corp. .................... 197,437 8,700 Sturm Ruger & Co., Inc. .............. 105,357 3,100 Suffolk Bancorp ...................... 101,060 9,500 Summit Properties, Inc. .............. 243,580 4,865 Sun Bancorp, Inc. 1 .................. 103,430 6,900 Sun Communities, Inc. ................ 259,785 5,725 Sunrise Assisted Living, Inc. 1,2 .... 224,077 5,900 Sunterra Corp. 1 ..................... 74,340 15,583 SuperGen, Inc. 1,2 ................... 100,510 19,901 Superior Energy Services, Inc. 1 ..... 200,005 8,300 Superior Industries International, Inc. 2 277,635 3,048 Supertex, Inc. 1 ..................... 49,804 13,700 Support.com, Inc. 1 .................. 118,916 5,500 Surewest Communications .............. 173,800 6,400 SurModics, Inc. 1,2 .................. 157,696 17,247 Susquehanna Bancshares, Inc. ......... 433,935 10,020 Swift Energy Co. 1 ................... 221,041 17,900 Swift Transportation Co., Inc. 1 ..... 321,305 6,111 SWS Group, Inc. ...................... 93,498 SHARES SECURITY VALUE - ------------------------------------------------------------------ 14,400 Sybron Dental Specialties, Inc. 1 .... $ 429,840 65,200 Sycamore Networks, Inc. 1 ............ 275,796 8,500 Sykes Enterprises, Inc. 1 ............ 64,260 18,200 Symmetricom, Inc. 1 .................. 161,980 10,270 Symyx Technologies 1 ................. 247,712 9,100 Synaptics, Inc. 1 .................... 174,265 2,500 Syntel, Inc. ......................... 41,375 13,000 Syntroleum Corp. 1 ................... 86,060 2,100 Sypris Solutions, Inc. ............... 40,299 2,900 Systemax, Inc. 1 ..................... 19,430 16,600 Take-Two Interactive Software, Inc. 1 508,624 12,533 TALK America Holdings, Inc. 1,2 ...... 96,128 6,250 TALX Corp. ........................... 152,688 5,100 Tanger Factory Outlet Centers, Inc. .. 199,410 10,400 Tanox, Inc. 1 ........................ 198,328 2,700 Tarragon Corp. ....................... 39,825 9,100 Taser International, Inc. 1 .......... 394,303 17,800 Taubman Centers, Inc. ................ 407,442 2,200 Taylor Capital Group, Inc. ........... 47,850 7,700 TBC Corp. 1 .......................... 183,260 15,800 Techne Corp. 1 ....................... 686,510 3,300 Technical Olympic USA, Inc. .......... 73,524 15,800 Technitrol, Inc. 1 ................... 346,020 6,341 Tecumseh Products Co.--Class A ....... 261,186 2,300 Tejon Ranch Co. 1 .................... 80,040 20,100 Tekelec 1 ............................ 365,217 13,822 Teledyne Technologies, Inc. 1 ........ 276,716 16,500 TeleTech Holdings, Inc. 1 ............ 144,705 16,200 Telik, Inc. 1 ........................ 386,694 8,900 Tempur-Pedic International, Inc. 1 ... 124,689 2,600 Tennant Co. .......................... 107,770 17,000 Tenneco Automotive, Inc. 1 ........... 224,910 24,300 Terayon Communication ................ Systems, Inc. 1 ..................... 56,862 18,468 Terex Corp. 1 ........................ 630,313 12,800 Terra Industries, Inc. 1 ............. 72,064 24,655 Tersoro Petroleum Corp. 1 ............ 680,478 9,300 Tessera Technologies, Inc. 1 ......... 167,586 22,116 Tetra Tech, Inc. 1 ................... 360,933 8,350 TETRA Technologies, Inc. 1 ........... 224,198 6,600 Texas Capital Bancshares, Inc. 1 ..... 109,560 7,847 Texas Industries, Inc. ............... 323,061 10,189 Texas Regional Bancshares, Inc.-- Class A ............................. 467,777 14,900 ThermoGenesis Corp. 1 ................ 70,477 21,800 Thomas & Betts Corp. ................. 593,614 4,700 Thomas Industries, Inc. .............. 156,040 4,200 Thomas Nelson, Inc. .................. 95,508 13,400 Thor Industries, Inc. ................ 448,364 18,860 Thoratec Laboratories Corp. 1 ........ 202,368 14,197 THQ, Inc. 1 .......................... 325,111 7,200 Tier Technologies, Inc.--Class B 1 ... 70,128 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 23 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 9,400 TierOne Corp. ........................ $ 202,194 16,800 Time Warner Telecommunications, Inc.--Class A 1 ..................... 70,392 31,300 Titan Corp. 1 ........................ 406,274 16,000 TiVo, Inc. 1,2 ....................... 113,440 3,000 Todco--Class A 1 ..................... 46,410 2,430 Tompkins Trustco, Inc. ............... 115,425 12,844 Too, Inc. 1 .......................... 214,495 10,996 Topps Co., Inc. ...................... 106,661 9,600 Toro Co. ............................. 672,672 24,690 Tower Automotive, Inc. 1,2 ........... 89,872 5,600 Town & Country Trust ................. 141,344 11,700 Tractor Supply Co. 1 ................. 489,294 9,400 Tradestation Group, Inc. 1 ........... 67,586 10,600 Trammel Crow Co. 1 ................... 149,460 7,309 Trans World Entertainment Corp. 1 .... 73,236 3,600 TransAct Technologies, Inc. 1 ........ 113,832 14,806 Transaction Systems Architecture, Inc.--Class A 1 ..................... 318,773 11,845 Transkaryotic Therapies, Inc. 1 ...... 177,201 54,300 Transmeta Corp. 1 .................... 118,917 5,000 TransMontaigne Oil Co. 1 ............. 26,900 1,300 Travelzoo, Inc. 1 .................... 38,727 5,050 TRC Cos., Inc. 1 ..................... 84,234 11,055 Tredegar Industries, Inc. ............ 178,317 3,800 Trex Co., Inc. 1 ..................... 143,450 3,800 Triad Guaranty, Inc. 1 ............... 221,160 12,900 Triarc Cos., Inc.--Class B ........... 131,193 5,000 TriCo Bancshares ..................... 94,500 8,300 Trident Microsystems, Inc. 1 ......... 93,043 19,809 Trimble Navigation Ltd. 1 ............ 550,492 6,702 Trimeris, Inc. 1 ..................... 96,710 13,712 Trinity Industries, Inc. ............. 435,904 9,200 Tripath Imaging, Inc. 1 .............. 86,572 15,500 Tripath Technology, Inc. 1 ........... 50,375 50,878 TriQuint Semiconductor, Inc. 1 ....... 277,794 11,800 Triton PCS Holdings, Inc.--Class A 1 . 51,448 5,400 Triumph Group, Inc. 1 ................ 172,422 10,100 TriZetto Group, Inc. 1 ............... 67,670 27,783 Trustco Bank Corp. ................... 363,957 16,700 Trustmark Corp. ...................... 482,964 14,600 TTM Technologies, Inc. 1 ............. 173,010 10,500 Tuesday Morning Corp. 1 .............. 304,500 20,500 Tumbleweed Communications Corp. 1 .... 87,330 19,490 Tupperware Corp. ..................... 378,691 16,200 Tyler Technologies, Inc. 1 ........... 153,252 26,834 U.S. Oncology, Inc. 1 ................ 394,996 11,800 U.S. Restaurant Properties, Inc ...... 179,242 3,722 U.S.B. Holding Co., Inc. ............. 85,308 15,100 U.S.I. Holdings Corp. 1 .............. 238,580 29,000 UbiquiTel, Inc. 1 .................... 122,380 15,600 UICI 1 ............................... 371,436 4,600 UIL Holdings Corp. ................... 223,974 SHARES SECURITY VALUE - ------------------------------------------------------------------ 4,200 Ulticom, Inc. 1 ...................... $ 49,140 7,100 Ultimate Software Group, Inc. (The) 1 71,710 4,700 Ultralife Batteries, Inc. 1 .......... 90,992 7,928 Ultratech Stepper, Inc. 1 ............ 129,068 5,592 UMB Financial Corp. .................. 288,659 10,591 Umpqua Holdings Corp. ................ 222,305 3,500 UniFirst Corp. ....................... 101,815 2,000 Union Bankshares Corp. ............... 63,200 12,800 Unisource Energy Corp. ............... 318,080 14,870 Unit Corp. 1 ......................... 467,662 6,800 United Auto Group, Inc. .............. 208,420 13,200 United Bankshares, Inc. .............. 429,000 11,100 United Community Banks, Inc. ......... 279,498 13,542 United Community Financial Corp. ..... 176,046 2,300 United Fire & Casualty Co. ........... 132,825 5,700 United Industrial Corp. .............. 133,095 15,900 United Natural Foods, Inc. 1 ......... 459,669 19,450 United Online, Inc. 1 ................ 342,515 2,400 United PanAm Financial Corp. 1 ....... 40,920 16,100 United Rentals, Inc. 1 ............... 288,029 12,651 United Stationers, Inc. 1 ............ 502,498 10,500 United Surgical Partners International, Inc. 1 ............... 414,435 7,028 United Therapeutics Corp. 1 .......... 180,268 12,800 Universal American Financial Corp. 1 . 140,544 5,900 Universal Compression Holdings, Inc. 1 181,012 9,368 Universal Corp. ...................... 477,206 8,615 Universal Display Corp. 1 ............ 92,525 4,241 Universal Electronics, Inc. 1 ........ 74,345 7,200 Universal Forest Products, Inc. ...... 232,200 4,600 Universal Health Realty Income Trust, REIT ......................... 132,020 5,000 Universal Technical Institute, Inc. 1 199,900 2,300 Univest Corporation of Pennsylvania .. 117,300 9,917 Unizan Financial Corp. ............... 258,834 17,900 UNOVA, Inc. 1 ........................ 362,475 6,200 Urologix, Inc. 1 ..................... 95,728 11,300 URS Corp. 1 .......................... 309,620 5,900 Urstadt Biddle Properties--Class A ... 87,379 4,500 USANA Health Sciences, Inc. 1 ........ 139,860 33,333 USEC, Inc. ........................... 292,330 10,351 USF Corp. ............................ 363,631 12,000 USG Corp. 1 .......................... 210,960 9,100 Vail Resorts, Inc. 1 ................. 174,356 19,200 Valassis Communications, Inc. 1 ...... 585,024 31,600 Valeant Pharmaceuticals International 632,000 23,800 Valence Technology, Inc. 1,2 ......... 81,634 7,040 Valhi, Inc. .......................... 80,045 5,800 Valmont Industries, Inc. ............. 132,820 400 Value Line, Inc. ..................... 14,204 29,100 ValueClick, Inc. 1 ................... 348,618 8,100 ValueVision International, Inc. 1 .... 105,462 7,800 Vans, Inc. 1 ......................... 160,290 See Notes to Financial Statements. - -------------------------------------------------------------------------------- 24 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited) SHARES SECURITY VALUE - ------------------------------------------------------------------ 13,506 Varian Semiconductor Equipment Associates, Inc. 1 ................... $ 520,791 12,828 Varian, Inc. 1 ....................... 540,700 8,400 VaxGen, Inc. 1 ....................... 118,944 10,757 Vector Group Ltd. 2 .................. 169,423 9,200 Veeco Instruments, Inc. 1 ............ 237,452 5,596 Ventana Medical Systems, Inc. 1 ...... 265,978 7,800 Ventiv Health, Inc. 1 ................ 120,744 4,000 Verint Systems, Inc. 1 ............... 136,880 12,300 Veritas DGC, Inc. 1 .................. 284,745 10,317 Verity, Inc. 1 ....................... 139,383 50,300 Verso Technologies, Inc. 1 ........... 88,025 30,800 Vertex Pharmaceuticals, Inc. 1 ....... 333,872 11,800 Vesta Insurance Group, Inc. .......... 76,346 8,100 ViaSat, Inc. 1 ....................... 202,095 11,500 Viasys Healthcare, Inc. 1 ............ 240,465 6,774 Vicor Corp. 1 ........................ 123,761 18,700 Vicuron Pharmaceuticals, Inc. 1 ...... 234,872 87,400 Vignette Corp. 1 ..................... 145,084 9,900 Viisage Technology, Inc. 1 ........... 86,328 21,490 Vintage Petroleum, Inc. .............. 364,685 23,400 Vion Pharmaceuticals, Inc. 1 ......... 97,344 2,900 Virginia Commerce Bancorp, Inc. 1 .... 85,579 1,900 Virginia Financial Group, Inc. ....... 65,265 4,200 VistaCare, Inc.--Class A 1 ........... 77,910 48,300 Visteon Corp. ........................ 563,661 18,100 VISX, Inc. 1 ......................... 483,632 2,000 Vital Signs, Inc. .................... 58,080 81,000 Vitesse Semiconductor Corp. 1 ........ 395,280 2,400 Volt Information Sciences, Inc. 1 .... 75,624 11,100 W-H Energy Services, Inc. 1 .......... 217,560 27,700 W.R. Grace & Co. 1 ................... 171,740 10,100 Wabash National Corp. 1 .............. 278,255 15,471 Wabtec Corp. ......................... 279,097 11,100 Walter Industries, Inc. .............. 151,182 16,600 Warnaco Group, Inc. 1 ................ 353,082 10,500 Washington Group International, Inc. 1 376,845 17,300 Washington Real Estate Investment Trust .................... 508,274 4,000 Washington Trust Bancorp, Inc. ....... 103,880 16,350 Waste Connections, Inc. 1 ............ 484,941 15,400 WatchGuard Technologies, Inc. 1 ...... 111,188 2,700 Water Pik Technologies, Inc. 1 ....... 44,712 7,753 Watsco, Inc.--Class A ................ 217,627 12,700 Watson Wyatt and Co. Holdings ........ 338,455 8,080 Watts Industries, Inc.--Class A ...... 217,756 16,580 Wausau-Mosinee Paper Co. ............. 286,834 12,995 Waypoint Financial Corp. ............. 358,532 12,200 WCI Communities, Inc. 1 .............. 272,182 7,600 WD-40 Co. ............................ 227,544 11,000 WebEx Communications, Inc. 1,2 ....... 239,360 17,300 webMethods, Inc. 1 ................... 148,261 8,500 Websense, Inc. 1 ..................... 316,455 3,600 Weis Markets, Inc. ................... 126,180 SHARES SECURITY VALUE - ------------------------------------------------------------------ 15,500 Wellman, Inc. ........................ $ 126,015 17,100 Werner Enterprises, Inc. 1 ........... 360,810 8,500 WesBanco, Inc. ....................... 247,605 5,977 WESCO International, Inc. 1 .......... 109,977 4,100 West Bancorp ......................... 71,709 6,800 West Coast Bancorp ................... 145,792 6,000 West Marine, Inc. 1 .................. 161,100 5,036 West Pharmaceutical Services, Inc. ... 213,023 11,500 Westamerica Bankcorporation .......... 603,175 20,400 Westell Technologies, Inc. 1 ......... 104,040 1,500 Western Sierra Bancorp 1 ............. 46,455 17,400 WGL Holdings, Inc. ................... 499,728 5,900 Whiting Petroleum Corp. 1 ............ 148,385 11,389 Wild Oats Market, Inc. 1 ............. 160,243 1,800 William Lyon Homes, Inc. 1 ........... 165,870 2,100 Wilshire State Bank 1 ................ 51,492 8,000 Wilson Greatbatch Technologies, Inc. 1 223,600 28,200 Wind River Systems, Inc. 1 ........... 331,632 29,800 Winn-Dixie Stores, Inc. 1 ............ 214,560 9,494 Winnebago Industries ................. 353,936 10,100 Winston Hotels, Inc. ................. 104,535 7,550 Wintrust Financial Corp. ............. 381,351 16,800 Wireless Facilities, Inc. 1 .......... 165,144 8,800 Witness Systems, Inc. 1 .............. 106,920 15,800 WJ Communications, Inc. 1 ............ 55,932 7,200 WMS Industries, Inc. 1 ............... 214,560 14,900 Wolverine World Wide, Inc. ........... 391,125 3,267 Woodhead Industries, Inc. ............ 50,508 4,100 Woodward Governor Co. ................ 295,651 7,600 World Acceptance Corp. 1 ............. 139,308 3,900 World Fuel Services Corp. ............ 175,812 3,522 World Wrestling Entertainment, Inc. .. 44,906 9,700 Wright Medical Group, Inc. 1 ......... 345,320 2,700 WSFS Financial Corp. ................. 131,409 8,100 X-Rite, Inc. ......................... 117,774 12,500 Xicor, Inc. 1 ........................ 189,125 18,248 Yankee Candle Co., Inc. 1 ............ 533,754 4,900 Yardville National Bancorp ........... 122,500 15,400 York International Corp. ............. 632,478 7,461 Young Broadcasting Corp. - Class A 1 . 98,112 1,100 Young Innovations, Inc. .............. 27,940 19,800 Zale Corp. 1 ......................... 539,748 4,200 Zenith National Insurance Corp. ...... 204,120 14,700 Zhone Technologies, Inc. 1 ........... 57,330 14,700 Zila, Inc. 1 ......................... 72,177 9,000 Zix Corp. 1 .......................... 71,460 4,200 Zoll Medical Corp. 1 ................. 147,336 16,065 Zoran Corp. 1 ........................ 294,793 7,222 Zygo Corp. 1 ......................... 80,814 6,500 Zymogenetics, Inc. 1 ................. 123,500 ------------ TOTAL COMMON STOCKS (Cost $343,937,427) 392,699,061 ------------ SHORT-TERM INSTRUMENTS--3.31% U.S. TREASURY BILLS 3--3.31% $ 855,000 0.97%, 07/22/04 4 ................... $ 854,544 338,000 1.25%, 09/30/04 ..................... 336,861 38,000 1.34%, 10/07/04 ..................... 37,859 569,000 1.46%, 10/21/04 ..................... 566,467 4,620,000 1.50%, 10/28/04 ..................... 4,597,367 6,936,000 1.54%, 11/04/04 ..................... 6,899,322 ------------ 13,292,420 ------------ TOTAL SHORT-TERM INSTRUMENTS (Cost $13,292,707) .............................. 13,292,420 ------------ SECURITIES LENDING COLLATERAL--3.11% INVESTMENT IN AFFILIATED INVESTMENT COMPANIES--3.11% 12,472,025 Daily Assets Fund Institutional 1.14% 6,7 (Cost $12,472,025) .................. 12,472,025 ------------ TOTAL INVESTMENTS (Cost $369,702,159) ................... 104.34% $418,463,506 LIABILITIES IN EXCESS OF OTHER ASSETS .... (4.34) (17,431,277) ------ ------------ NET ASSETS ............................... 100.00% $401,032,229 ====== ============ - -------------------------------------------------------------------------------- 1 Non-income producing security for the period ended June 30, 2004. 2 All or a portion of this security was on loan (see Note 1). The value of all securities loaned at June 30, 2004 amounted to $11,950,503, which is 2.98% of total net assets. 3 Rates shown represent annualized yield at time of purchase, not a coupon rate. 4 Held as collateral for futures contracts. 5 Closed end mutual fund. 6 Daily Assets Fund Institutional, an affiliated fund, is also managed by Deutsche Asset Management, Inc. The rate shown is the annualized seven day yield at period end. 7 Represents collateral held in connection with securities lending. REIT--Real Estate Investment Trust See Notes to Financial Statements. - -------------------------------------------------------------------------------- 26
Scudder VIT Small Cap Index Fund - --------------------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES (Unaudited) - --------------------------------------------------------------------------------------------- JUNE 30, 2004 ASSETS Investments at value (cost $357,230,134) ................................... $405,991,481 Investments in affiliated issuers, at value (cost $12,472,025) ............. 12,472,025 Cash ....................................................................... 192,357 Receivable for capital shares sold ......................................... 758,715 Dividends and interest receivable .......................................... 347,744 Variation margin receivable for future contracts ........................... 48,125 Other assets ............................................................... 4,962 ------------ Total assets .................................................................. 419,815,409 ------------ LIABILITIES Payable for securities purchased ........................................... 5,996,278 Payable upon return of securities loaned ................................... 12,472,025 Payable for capital shares redeemed ........................................ 33,816 Advisory fees payable ...................................................... 130,430 12b-1 fees payable ......................................................... 4,840 Accrued expenses and other ................................................. 145,791 ------------ Total liabilities ............................................................. 18,783,180 ------------ NET ASSETS .................................................................... $401,032,229 ============ COMPOSITION OF NET ASSETS Paid-in capital ............................................................ $347,459,087 Undistributed net investment income ........................................ 1,165,990 Accumulated net realized gain on investments and futures transactions ...... 3,574,430 Net unrealized appreciation of investments and futures contracts ........... 48,832,722 ------------ NET ASSETS .................................................................... $401,032,229 ============ NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE (net assets divided by shares outstanding) Class A 1 .................................................................. $ 12.99 ============ Class B 2 .................................................................. $ 12.99 ============
- -------------------------------------------------------------------------------- 1 Net asset value, redemption price and offering price per share (based on net assets of $374,369,164 and 28,828,000 shares outstanding at June 30, 2004 and 0.001 par value, unlimited number of shares authorized). 2 Net asset value, redemption price and offering price per share (based on net assets of $26,663,065 and 2,052,192 shares outstanding at June 30, 2004 and 0.001 par value, unlimited number of shares authorized). See Notes to Financial Statements. - -------------------------------------------------------------------------------- 27 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS (Unaudited) - -------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED JUNE 30, 2004 - -------------------------------------------------------------------------------- INVESTMENT INCOME Dividends (net of foreign tax withheld of $733) ............... $ 2,033,619 Interest ...................................................... 35,575 Securities lending income ..................................... 73,683 ----------- TOTAL INVESTMENT INCOME .......................................... 2,142,877 ----------- EXPENSES Advisory fees ................................................. 656,685 Administration and services fees .............................. 107,539 Custodian fees ................................................ 72,773 Transfer agent fees ........................................... 40,615 Printing and shareholder reports .............................. 27,593 12b-1 fees (Class B Shares) ................................... 26,463 Professional fees ............................................. 24,597 Trustees fees ................................................. 6,592 Insurance ..................................................... 3,329 Miscellaneous ................................................. 740 ----------- Total expenses ................................................... 966,926 Less: fee waivers ................................................ (95,548) ----------- Net expenses ..................................................... 871,378 ----------- NET INVESTMENT INCOME ............................................ 1,271,499 ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES CONTRACTS Net realized gain (loss) from: Investment transactions ..................................... 17,690,363 Futures transactions ........................................ (46,844) Net change in unrealized appreciation/depreciation of investments and futures contracts ........................... 3,006,649 ----------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FUTURE CONTRACTS .............................................. 20,650,168 ----------- NET INCREASE IN NET ASSETS FROM OPERATIONS ....................... $21,921,667 =========== See Notes to Financial Statements. - -------------------------------------------------------------------------------- 28 Scudder VIT Small Cap Index Fund - --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS - ----------------------------------------------------------------------------------------------------------------- FOR THE SIX FOR THE MONTHS ENDED YEAR ENDED JUNE 30, 2004 1 DECEMBER 31, 2003 - ----------------------------------------------------------------------------------------------------------------- INCREASE IN NET ASSETS FROM: OPERATIONS Net investment income ................................................ $ 1,271,499 $ 1,853,277 Net realized gain (loss) from investment and futures transactions ............................................... 17,643,519 (6,007,971) Net change in unrealized appreciation/depreciation on investments and futures contracts .................................. 3,006,649 83,449,784 ------------ ------------ Net increase in net assets from operations ........................... 21,921,667 79,295,090 ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS Net investment income: Class A Shares ..................................................... (1,595,565) (1,488,587) Class B Shares ..................................................... (45,001) (26,556) ------------ ------------ Total distributions ..................................................... (1,640,566) (1,515,143) ------------ ------------ CAPITAL SHARE TRANSACTIONS Net increase resulting from Class A Shares ........................... 38,969,327 97,560,900 Net increase resulting from Class B Shares ........................... 8,023,287 12,403,741 ------------ ------------ Net increase in net assets from capital share transactions .............. 46,992,614 109,964,641 ------------ ------------ TOTAL INCREASE IN NET ASSETS ............................................ 67,273,715 187,744,588 ------------ ------------ NET ASSETS Beginning of period .................................................. 333,758,514 146,013,926 ------------ ------------ End of period (including undistributed net investment income of $1,165,990 and $1,535,057 respectively) ......................... $401,032,229 $333,758,514 ============ ============
- -------------------------------------------------------------------------------- 1 Unaudited. See Notes to Financial Statements. - -------------------------------------------------------------------------------- 29 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
CLASS A SHARES FOR THE SIX MONTHS ENDED JUNE 30, FOR THE YEARS ENDED DECEMBER 31, 2004 1 2003 2002 2001 2000 1999 - ------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE, BEGINNING OF PERIOD ................. $12.24 $ 8.45 $10.73 $11.10 $11.61 $10.06 ------ ------ ------ ------ ------ ------ INCOME (LOSS) FROM INVESTMENT OPERATIONS Net investment income 2 ............. 0.04 0.09 0.10 0.06 0.10 0.09 Net realized and unrealized gain (loss) on investments and futures transactions .......... 0.77 3.79 (2.31) 0.16 (0.55) 1.92 ------ ------ ------ ------ ------ ------ Total from investment operations .......................... 0.81 3.88 (2.21) 0.22 (0.45) 2.01 ------ ------ ------ ------ ------ ------ DISTRIBUTIONS TO SHAREHOLDERS Net investment income ............... (0.06) (0.09) (0.06) (0.06) -- (0.12) Net realized gain from investment and futures transactions ...................... -- -- (0.01) (0.53) (0.06) (0.34) ------ ------ ------ ------ ------ ------ Total distributions .................... (0.06) (0.09) (0.07) (0.59) (0.06) (0.46) ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD ....................... $12.99 $12.24 $ 8.45 $10.73 $11.10 $11.61 ====== ====== ====== ====== ====== ====== TOTAL INVESTMENT RETURN ................ 6.60% 4 46.42% 3 (20.58)% 3 2.07% 3 (3.87)% 3 20.16% 3 SUPPLEMENTAL DATA AND RATIOS: Net assets, end of period (000s omitted) ....................$374,369 $316,218 $143,847 $151,742 $104,095 $55,559 Ratios to average net assets: Net investment income ............. 0.69% 5 0.91% 1.09% 1.07% 1.13% 1.14% Expenses after waivers and/or reimbursements .......... 0.45% 5 0.45% 0.45% 0.45% 0.45% 0.45% Expenses before waivers and/or reimbursements .......... 0.50% 5 0.61% 0.61% 0.63% 0.69% 1.18% Portfolio turnover rate ............. 39% 5 28% 40% 44% 51% 68%
- -------------------------------------------------------------------------------- 1 Unaudited. 2 Calculated based on average shares. 3 Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period and redemption on the last day of the period. If fees for the advisor and administrator were not waived, the total return would have been lower. 4 Total return calculated for a period of less than one year is not annualized. 5 Annualized. See Notes to Financial Statements. - -------------------------------------------------------------------------------- 30 Scudder VITSmall Cap Index Fund - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS
CLASS B SHARES FOR THE PERIOD FOR THE SIX FOR THE APRIL 30, 2002 2 MONTHS ENDED YEAR ENDED THROUGH JUNE 30, 2004 1 DECEMBER 31, 2003 DECEMBER 31, 2002 PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE, BEGINNING OF PERIOD ................... $12.23 $ 8.44 $11.23 ------ ------ ------ INCOME (LOSS) FROM INVESTMENT OPERATIONS Net investment income 3 ............................. 0.03 0.07 0.06 Net realized and unrealized gain (loss) on investments and futures transactions .......................... 0.75 3.80 (2.79) ------ ------ ------ Total from investment operations ....................... 0.78 3.87 (2.73) ------ ------ ------ DISTRIBUTIONS TO SHAREHOLDERS Net investment income ............................... (0.02) (0.08) (0.05) Net realized gain on investment and futures transactions .......................... -- -- (0.01) ------ ------ ------ Total distributions .................................... (0.02) (0.08) (0.06) ------ ------ ------ NET ASSET VALUE, END OF PERIOD ......................... $12.99 $12.23 $ 8.44 ====== ====== ====== TOTAL INVESTMENT RETURN ................................ 6.42% 5 46.05% 4 (24.34)% 5 SUPPLEMENTAL DATA AND RATIOS: Net assets, end of period (000s omitted) .................................... $26,663 $17,540 $2,167 Ratios to average net assets: Net investment income ............................. 0.46% 6 0.66% 1.11% 6 Expenses after waivers and/or reimbursements .......................... 0.70% 6 0.70% 0.70% 6 Expenses before waivers and/or reimbursements .......................... 0.75% 6 0.87% 0.88% 6 Portfolio turnover rate ............................. 39% 6 28% 40%
- -------------------------------------------------------------------------------- 1 Unaudited. 2 Commencement of operations. 3 Calculated based on average shares. 4 Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period and redemption on the last day of the period. If fees for the advisor and administrator were not waived, the total return would have been lower. 5 Total return calculated for a period of less than one year is not annualized. 6 Annualized. See Notes to Financial Statements. - -------------------------------------------------------------------------------- 31 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1--ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES A. ORGANIZATION Scudder Investments VIT Funds (the 'Trust') is registered under the Investment Company Act of 1940 (the '1940 Act'), as amended, as a diversified, open-end management investment company. The Trust is organized as a business trust under the laws of the Commonwealth of Massachusetts. Scudder VIT Small Cap Index Fund (the 'Fund') is one of the series the Trust offers to investors. The Fund offers two classes of shares to investors: Class A Shares and Class B Shares. Class B Shares are subject to Rule 12b-1 fees under the 1940 Act equal to an annual rate up to 0.25% of the Class B Shares average daily net assets. All shares have equal rights with respect to voting except that shareholders vote separately on matters affecting their rights as holders of a particular class. The investment objective of the Fund is to replicate, as closely as possible (before the deduction of expenses) the performance of the Russell 2000(R) Index, which emphasizes stocks of small US companies. B. VALUATION OF SECURITIES Investments are stated at value determined as of the close of regular trading on the New York Stock Exchange on each day the exchange is open for trading. Equity securities are valued at the most recent sale price or official closing price reported on the exchange (US or foreign) or over-the-counter market on which the security is traded most extensively. Securities for which no sales are reported are valued at the calculated mean between the most recent bid and asked quotations on the relevant market or, if a mean cannot be determined, at the most recent bid quotation. Money market instruments purchased with an original or remaining maturity of sixty days or less, maturing at par, are valued at amortized cost. Investments in open end investment companies are valued at their net asset value each business day. Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Board of Trustees. C. SECURITIES TRANSACTIONS, INVESTMENT INCOME AND OTHER Securities transactions are recorded on trade date. Realized gains and losses are determined by comparing the proceeds of a sale or the cost of a purchase with a specific offsetting transaction. Dividend income is recorded on the ex-dividend date. Interest income, including amortization of premiums and accretion of discounts, is accrued daily. Estimated expenses are also accrued daily. Distribution fees specifically attributable to a class are allocated to that class. All other expenses, income, gains and losses are allocated among the classes based upon their relative net assets. The Trust accounts separately for the assets, liabilities and operations of each of the Funds. Expenses directly attributable to a Fund are charged to that Fund, while the expenses that are attributable to the Trust are allocated among the Funds based upon the relative net assets of each Fund. D. DISTRIBUTIONS The Fund pays annual dividends from its net investment income and makes annual distributions of any net realized capital gains to the extent they exceed capital loss carryforwards. The Fund records dividends and distributions on its books on the ex-dividend date. E. FEDERAL INCOME TAXES It is the Fund's policy to continue to qualify as a regulated investment company under the Internal Revenue Code of 1986, as amended, and to distribute substantially all of its taxable income to shareholders. Therefore, no federal income taxes have been accrued. F. FUTURES CONTRACTS The Fund may buy or sell financial futures contracts on established futures exchanges. Under the terms of a financial futures contract, the Fund agrees to receive or deliver a specific amount of a financial instrument at a specific price on a specific date. - -------------------------------------------------------------------------------- 32 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (Unaudited) The Fund's investments in financial futures contracts are designed to closely replicate the benchmark index used by the Fund. When the Fund enters into a futures contract, it is required to make a margin deposit equal to a percentage of the face value of the contract. While the contract is outstanding, the Fund may be required to make additional deposits or may have part of its deposit returned as a result of changes in the relationship between the face value of the contract and the value of the underlying security. The Fund records these payments as unrealized gains or losses. When entering into a closing transaction, the Fund realizes a gain or loss. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. G. SECURITIES LENDING The Fund may lend securities to financial institutions. The Fund retains beneficial ownership of the securities it has loaned and continues to receive interest and dividends paid by the securities and to participate in any changes in their market value. The Fund requires the borrowers of the securities to maintain collateral with the Fund in the form of cash and/or government securities equal to 102% of the value of domestic securities and 105% of the value of international securities. The Fund receives compensation for lending its securities either in the form of fees or by earning interest on invested cash collateral. Either the Fund or the borrower may terminate the loan. The Fund is subject to all risks associated with the investment of any cash collateral received, including, but not limited to, interest rate, market, credit and liquidity risk associated with such investments. At June 30, 2004, $12,472,025 of cash collateral was invested in the Daily Assets Fund Institutional. H. ESTIMATES In preparing its financial statements in conformity with accounting principles generally accepted in the United States, management makes estimates and assumptions. Actual results may be different. NOTE 2--FEES AND TRANSACTIONS WITH AFFILIATES Deutsche Asset Management, Inc. ('Advisor' or 'DeAM, Inc.'), an indirect, wholly-owned subsidiary of Deutsche Bank AG, is the Fund's Advisor. The Fund pays the Advisor an annual fee based on its average daily net assets, which is calculated daily and paid monthly at the annual rate of 0.35%. Northern Trust Investments, N.A. ('NTI') acts as investment sub-advisor for the Fund. As the Fund's investment sub-advisor, NTI makes the Fund's investment decisions. It buys and sells securities for the Fund and conducts the research that leads to these purchase and sale decisions. DeAM, Inc. pays a fee to NTI for acting as sub-advisor to the Fund. The Advisor has contractually agreed to waive its fees and/or reimburse expenses of the Fund, to the extent necessary, to limit all expenses to 0.45% of average daily net assets for Class A Shares and 0.70% of average daily net assets for Class B Shares until April 30, 2005. Effective May 1, 2002, the Advisor may recoup any of its waived investment advisory fees within the following three years if the Fund is able to make the repayment without exceeding its current expense limits. At June 30, 2004, the Advisor has $913,976 remaining recoupable expenses available. Certain officers and trustees of the Fund are also officers or directors of DeAM, Inc. These persons are not paid by the Fund for serving in these capacities. NOTE 3--OTHER FEES PFPC Inc. ('Administrator') is the Fund's Administrator and Transfer Agent. The Fund pays the Administrator an annual fee based on its average daily net assets which is calculated daily and paid monthly. State Street Bank and Trust Company ('Custodian'), is the Fund's Custodian. The Fund pays the Custodian an annual fee. The Fund pays PFPC Distributors, Inc. an annual fee, pursuant to Rule 12b-1, which is calculated daily and paid monthly at the annual rate of up to 0.25% of the Class B Shares average daily net assets. - -------------------------------------------------------------------------------- 33 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 4--CAPITAL SHARE TRANSACTIONS Transactions in capital shares were as follows: Class A Shares ------------------------------------------------------------ For the Six Months Ended For the Year Ended June 30, 2004 1 December 31, 2003 ---------------------------- ---------------------------- Shares Amount Shares Amount ---------------------------- ---------------------------- Sold 7,869,468 $100,723,078 18,082,233 $182,226,405 Reinvested 128,364 1,595,565 171,892 1,488,587 Redeemed (5,013,489) (63,349,316) (9,439,085) (86,154,092) ---------- ------------ ---------- ------------ Net increase 2,984,343 $ 38,969,327 8,815,040 $ 97,560,900 ========== ============ ========== ============ Class B Shares ------------------------------------------------------------ For the Six Months Ended For the Year Ended June 30, 2004 1 December 31, 2003 ---------------------------- ---------------------------- Shares Amount Shares Amount ---------------------------- ---------------------------- Sold 1,199,338 $ 15,256,440 1,741,080 $18,140,402 Reinvested 3,617 45,001 3,069 26,607 Redeemed (585,492) (7,278,154) (566,181) (5,763,268) ---------- ------------ ---------- ------------ Net increase 617,463 $ 8,023,287 1,177,968 $12,403,741 ========== ============ ========== ============ - ------------------------------------------------------------------------- 1 Unaudited. NOTE 5--PURCHASE AND SALE OF INVESTMENT SECURITIES The aggregate cost of purchases and proceeds from sales of investments, other than US Government and short-term obligations, for the six months ended June 30, 2004, were $130,233,652 and $76,884,380, respectively. NOTE 6--FEDERAL INCOME TAX At December 31, 2003, capital contributions, accumulated undistributed net investment income, and accumulated net realized gain/(loss) from investments have been adjusted for current period permanent book/tax differences which arose principally from adjustments related to dividends and other non-taxable distributions received by the Fund, and reclassification of REIT dividends and REIT return of capital adjustments. These reclassifications resulted in the following increases/(decreases) in the components of net assets: Undistributed Undistributed Net Investment Net Realized Paid-in Income Gain/Loss Capital - -------------- ------------- ------- $(312,618) $312,618 -- For federal income tax purposes, the tax basis of investments held at December 31, 2003 was $301,379,563. The net unrealized appreciation for all securities based on tax cost was $39,459,119. The aggregate gross unrealized appreciation for all investments at December 31, 2003 was $53,615,984 and the aggregate gross unrealized depreciation for all investments was $14,156,865. The difference between book basis and tax-basis unrealized appreciation/depreciation is primarily attributable to the tax deferral of losses on wash sales. Income and capital gains distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. Distributions during the year ended December 31, 2003 were characterized as follows for tax purposes: Distributions paid from: 2003 - ----------------------- ----- Ordinary income $1,515,143 Net long-term capital gains -- At December 31, 2003, the components of distributable earnings on a tax basis were as follows: Undistributed ordinary income $ 1,579,590 Accumulated capital loss $(7,746,668) Unrealized appreciation/(depreciation) $39,459,119 At December 31, 2003, the Portfolio had capital loss carryovers available as a reduction against future net realized capital gains of $7,746,668 of which $3,693,995 expires in 2010 and $4,052,673 expires in 2011. NOTE 7--LINE OF CREDIT The Fund and several other funds and portfolios advised or administered by the Advisor or its affiliates (the 'Participants') share in a $1.25 billion revolving credit facility administered by J.P. Morgan Chase Bank 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, based upon net assets, among each of the Participants. Interest is calculated at the Federal Funds Rate plus 0.5%. The Fund may borrow up to a maximum of 33% of their net assets under the agreement. - -------------------------------------------------------------------------------- 34 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (Unaudited) There were no significant borrowings during the six months ended June 30, 2004. NOTE 8--OPEN FUTURES The Fund had the following open contracts at June 30, 2004: Type of Market Unrealized Future Expiration Contracts Position Value Appreciation - ------ ---------- --------- -------- ------ ------------ Russell 2000(R) September Index Future 2004 25 Long $7,404,375 $71,375 The use of futures contracts involves elements of market risk and risks in excess of the amount recognized in the Statement of Assets and Liabilities. The 'market value' presented above represents the Fund's total exposure in such contracts whereas only the net unrealized appreciation/(depreciation) is reflected in the Fund's net assets.Risks inherent in the use of futures contracts include 1) adverse changes in the value of such instruments, 2) an imperfect correlation between the price of the contracts and the underlying index and 3) the possibility of an illiquid secondary market. At June 30, 2004, the Fund pledged securities with a value of $854,544 to cover margin requirements on open futures contracts. NOTE 9--REGULATORY MATTERS AND LITIGATION Since at least July 2003, federal, state and industry regulators have been conducting ongoing inquiries and investigations ('inquiries') into the mutual fund industry, and have requested information from numerous mutual fund companies, including Scudder Investments. We are unable to determine what the outcome of these inquiries will be or what the effect, if any, would be on the portfolios/funds or their advisors. Publicity about mutual fund practices arising from these industry-wide inquiries serves as the general basis of a number of private lawsuits against the Scudder funds. These lawsuits, which previously have been reported in the press, involve purported class action and derivative lawsuits, making various allegations and naming as defendants various persons, including certain Scudder funds, Deutsche Asset Management ('DeAM') and its affiliates, certain individuals, including in some cases fund Trustees, and other parties. DeAM has undertaken to bear all liabilities and expenses incurred by the Scudder funds in connection with these lawsuits, or other lawsuits or regulatory actions that may be filed making allegations similar to these lawsuits regarding fund valuation, market timing, revenue sharing or other subjects of the pending inquiries. Based on currently available information, DeAM believes the likelihood that the pending lawsuits will have a material adverse financial impact on a Scudder fund is remote and such actions are not likely to materially affect its ability to perform under its investment management agreements with the Scudder funds. - -------------------------------------------------------------------------------- 35 Scudder VIT Small Cap Index Fund - -------------------------------------------------------------------------------- PROXY VOTING A description of the Fund's policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies related to its portfolio securities during the 12-month period ended June 30 is available on our Web site--scudder.com (type 'proxy voting' in the search field)--or on the SEC's Web site--www.sec.gov. To obtain a written copy of the Fund's policies and procedures without charge, upon request, call us toll free at (800) 621-1048. - -------------------------------------------------------------------------------- 36 [THIS PAGE INTENTIONALLY LEFT BLANK] [THIS PAGE INTENTIONALLY LEFT BLANK] ABOUT THE FUND'S ADVISOR Deutsche Asset Management, Inc., an indirect, wholly-owned subsidiary of Deutsche Bank AG, is the Fund's Advisor. Scudder Investments is part of Deutsche Asset Management, which is the marketing name in the United States for the asset management activities of Deutsche Bank AG, Deutsche Investment Management Americas Inc., Deutsche Asset Management Inc., Deutsche Asset Management Investment Services Ltd., DeutscheBank Trust Company Americas and Scudder Trust Company. The views expressed in this report reflect those of the portfolio managers only through the end of the period of the report as stated on the cover. The managers' views are subject to change at any time, based on market and other conditions and should not be construed as a recommendation. - -------------------------------------------------------------------------------- Distributed by: PFPC Distributors, Inc. 760 Moore Road King of Prussia, PA 19406 SCUDDER Portfolio changes should not be considered INVESTMENTS recommendations for action by individual investors. A Member of VIT4SA (8/31/04) MARS#32452 DEUTSCHE ASSET MANAGEMENT [RECYCLE LOGO OMITTED] Printed on recycled paper ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS. Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. The Nominating and Governance Committee evaluates and nominates Board member candidates. Fund shareholders may also submit nominees that will be considered by the Committee when a Board vacancy occurs. Submissions should be mailed to the attention of the Secretary of the Fund, One South Street, Baltimore, MD 21202. ITEM 10. CONTROLS AND PROCEDURES. (a) The Chief Executive and Financial Officers concluded that the Registrant's Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report. (b) There have been no changes in the registrant's internal control over financial reporting that occurred during the registrant's last half-year (the registrant's second fiscal half-year in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal controls over financial reporting. ITEM 11. EXHIBITS. (a)(1) Not applicable. (a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. (a)(3) Not applicable. (b) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Registrant: Scudder VIT Small Cap Index Fund By: /s/ JULIAN SLUYTERS ------------------- Julian Sluyters Chief Executive Officer Date: August 23, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Registrant: Scudder VIT Small Cap Index Fund By: /s/ JULIAN SLUYTERS ------------------- Julian Sluyters Chief Executive Officer Date: August 23, 2004 By: /s/ CHARLES A. RIZZO -------------------- Charles A. Rizzo Chief Financial Officer Date: August 23, 2004 EX-99.CERT 2 exh302.txt CERTIFICATION 302 CHIEF EXECUTIVE OFFICER FORM N-CSR CERTIFICATION UNDER SARBANES OXLEY ACT I, Julian Sluyters, certify that: 1. I have reviewed this report, filed on behalf of Small Cap Index Fund, a series of Scudder Investments VIT Funds, on Form N-CSR; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. August 23, 2004 /s/ Julian Sluyters Julian Sluyters Chief Executive Officer Small Cap Index Fund, a series of Scudder Investments VIT Funds CHIEF FINANCIAL OFFICER FORM N-CSR CERTIFICATION UNDER SARBANES OXLEY ACT I, Charles A. Rizzo, certify that: 1. I have reviewed this report, filed on behalf of Small Cap Index Fund, a series of Scudder Investments VIT Funds, on Form N-CSR; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. August 23, 2004 /s/ Charles A. Rizzo Charles A. Rizzo Chief Financial Officer Small Cap Index Fund, a series of Scudder Investments VIT Funds EX-99.906 3 exh906.txt CERTIFICATION 906 CHIEF EXECUTIVE OFFICER SECTION 906 CERTIFICATION UNDER SARBANES OXLEY ACT I, Julian Sluyters, certify that: 1. I have reviewed this report, filed on behalf of Small Cap Index Fund, a series of Scudder Investments VIT Funds, on Form N-CSR; 2. Based on my knowledge and pursuant to 18 U.S.C. ss. 1350, the periodic report on Form N-CSR (the "Report") fully complies with the requirements of ss. 13 (a) or ss. 15 (d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. August 23, 2004 /s/ Julian Sluyters Julian Sluyters Chief Executive Officer Small Cap Index Fund, a series of Scudder Investments VIT Funds CHIEF FINANCIAL OFFICER SECTION 906 CERTIFICATION UNDER SARBANES OXLEY ACT I, Charles A. Rizzo, certify that: 1. I have reviewed this report, filed on behalf of Small Cap Index Fund, a series of Scudder Investments VIT Funds, on Form N-CSR; 2. Based on my knowledge and pursuant to 18 U.S.C. ss. 1350, the periodic report on Form N-CSR (the "Report") fully complies with the requirements of ss. 13 (a) or ss. 15 (d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. August 23, 2004 /s/ Charles A. Rizzo Charles A. Rizzo Chief Financial Officer Small Cap Index Fund, a series of Scudder Investments VIT Funds -----END PRIVACY-ENHANCED MESSAGE-----