UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number 811-43
INVESTMENT TRUST
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(Exact Name of Registrant as Specified in Charter)
Two International Place, Boston, MA 02110-4103
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(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (617) 295-2663
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Salvatore Schiavone
Two International Place
Boston, Massachusetts 02110
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(Name and Address of Agent for Service)
Date of fiscal year end: 9/30
Date of reporting period: 3/31/2004
ITEM 1. REPORT TO STOCKHOLDERS
[Scudder Investments logo]
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Semiannual Report to Shareholders |
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March 31, 2004 |
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Contents |
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<Click Here> Performance Summary <Click Here> Portfolio Management Review <Click Here> Portfolio Summary <Click Here> Investment Portfolio <Click Here> Financial Statements <Click Here> Financial Highlights <Click Here> Notes to Financial Statements <Click Here> Account Management Resources <Click Here> Privacy Statement |
This report must be preceded or accompanied by a prospectus. To obtain a prospectus for any of our funds, refer to the Account Management Resources information provided in the back of this booklet. 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.
Investments in mutual funds involve risk. Some funds have more risk than others. This fund is subject to stock market risk. Stocks of small-sized companies involve greater risk as they often have limited product lines, markets, or financial resources and may be sensitive to erratic and abrupt market movements more so than securities of larger, more-established companies. Please read this fund's prospectus for specific information regarding its investments and risk profile.
Scudder Investments is part of Deutsche Asset Management, which is the marketing name in the US for the asset management activities of Deutsche Bank AG, Deutsche Investment Management Americas Inc., Deutsche Asset Management Inc., Deutsche Asset Management Investment Services Ltd., Deutsche Bank Trust Company Americas and Scudder Trust Company.
Fund shares are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Fund shares involve investment risk, including possible loss of principal.
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Classes A, B and C
All performance shown is historical, assumes reinvestment of all dividends and capital gains, and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions so that, when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please visit scudder.com for the product's most recent month-end performance.
The maximum sales charge for Class A shares is 5.75%. For Class B shares, the maximum contingent deferred sales charge (CDSC) is 4% within the first year after purchase, declining to 0% after six years. Class C shares have no adjustment for front-end sales charges but redemptions within one year of purchase may be subject to a CDSC of 1%. Unadjusted returns do not reflect sales charges and would have been lower if they had.
Returns during the 5-year and Life of Fund periods shown reflect a temporary fee and/or expense waiver. Without this waiver, returns would have been lower.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns and rankings may differ by share class.
Investing in securities of small companies may involve greater risk/volatility than investments in larger companies.
Returns shown for Class A, B and C shares for the periods prior to their inception on June 25, 2001 are derived from the historical performance of Class AARP shares of the Scudder Small Company Stock Fund during such periods and have been adjusted to reflect the higher gross total annual operating expenses of each specific class. Any difference in expenses will affect performance.
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Average Annual Total Returns (Unadjusted for Sales Charge) as of 3/31/04 |
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Scudder Small Company Stock Fund |
6-Month++ |
1-Year |
3-Year |
5-Year |
Life of Fund* |
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Class A
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23.10% |
62.24% |
16.50% |
9.91% |
8.15% |
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Class B
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22.58% |
60.91% |
15.51% |
9.00% |
7.26% |
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Class C
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22.57% |
60.98% |
15.53% |
9.02% |
7.28% |
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Russell 2000 Index+ |
21.69% |
63.83% |
10.90% |
9.66% |
8.15% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
++ Total returns shown for periods less than one year are not annualized.* The Fund commenced operations on February 1, 1997. Index returns begin on January 31, 1997.
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Net Asset Value and Distribution Information |
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Class A |
Class B |
Class C |
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Net Asset Value:
3/31/04 |
$ 25.61 | $ 25.03 | $ 25.05 |
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9/30/03 |
$ 21.43 | $ 21.03 | $ 21.04 |
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Distribution Information:
Six Months Capital Gains |
$ .70 | $ .70 | $ .70 |
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Class A Lipper Rankings - Small-Cap Core Funds Category as of 3/31/04 |
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Period |
Rank |
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Number of Funds Tracked |
Percentile Ranking |
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1-Year |
163 |
of |
526 |
31 |
Source: Lipper Inc. Rankings are historical and do not guarantee future results. Rankings are based on total return unadjusted for sales charges with distributions reinvested. If sales charges had been included, rankings might have been less favorable. Rankings are for Class A shares; other share classes may vary.
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Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge) |
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[] Scudder Small Company Stock Fund - Class A [] Russell 2000 Index+ |
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Yearly periods ended March 31 |
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.75%. This results in a net initial investment of $9,425.
The growth of $10,000 is cumulative.
* The Fund commenced operations on February 1, 1997. Index returns begin on January 31, 1997.|
Comparative Results (Adjusted for Maximum Sales Charge) as of 3/31/04 |
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Scudder Small Company Stock Fund
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1-Year |
3-Year |
5-Year |
Life of Fund* |
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Class A |
Growth of $10,000 |
$15,291 |
$14,904 |
$15,120 |
$16,517 |
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Average annual total return |
52.91% |
14.23% |
8.62% |
7.26% |
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Class B |
Growth of $10,000 |
$15,791 |
$15,213 |
$15,289 |
$16,521 |
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Average annual total return |
57.91% |
15.01% |
8.86% |
7.26% |
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Class C |
Growth of $10,000 |
$16,098 |
$15,420 |
$15,403 |
$16,546 |
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Average annual total return |
60.98% |
15.53% |
9.02% |
7.28% |
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Russell 2000
Index+
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Growth of $10,000 |
$16,383 |
$13,639 |
$15,855 |
$17,531 |
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Average annual total return |
63.83% |
10.90% |
9.66% |
8.15% |
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The growth of $10,000 is cumulative.
* The Fund commenced operations on February 1, 1997. Index returns begin on January 31, 1997.+ The Russell 2000 Index is an unmanaged capitalization-weighted measure of approximately 2000 small US stocks. Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
Class AARP has been created especially for members of AARP. Class S is not available to new investors.
All performance shown is historical, assumes reinvestment of all dividends and capital gains, and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions so that, when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please visit aarp.scudder.com (Class AARP) or myScudder.com (Class S) for the product's most recent month-end performance.
Returns and rankings during the 5-year and Life of Fund periods shown reflect a temporary fee and/or expense waiver. Without this waiver, returns and rankings would have been lower. Rankings are for Class AARP shares; rankings for share classes may vary.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns and rankings may differ by share class.
Investing in securities of small companies may involve a greater risk/volatility than investments in larger companies.
Returns shown for Class S shares for the periods prior to its inception on July 17, 2000 are derived from the historical performance of Class AARP of the Scudder Small Company Stock Fund during such periods and have assumed the same expense structure during such periods. Any difference in expenses will affect performance.
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Average Annual Total Returns as of 3/31/04 |
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Scudder Small Company Stock Fund |
6-Month++ |
1-Year |
3-Year |
5-Year |
Life of Fund* |
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Class AARP
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23.18% |
62.51% |
16.79% |
10.20% |
8.44% |
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Class S
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23.24% |
62.61% |
16.81% |
10.21% |
8.44% |
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Russell 2000 Index+ |
21.69% |
63.83% |
10.90% |
9.66% |
8.15% |
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
++ Total returns shown for periods less than one year are not annualized.* The Fund commenced operations on February 1, 1997. Index returns begin on January 31, 1997.
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Net Asset Value and Distribution Information |
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Class AARP |
Class S |
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Net Asset Value:
3/31/04 |
$ 25.82 | $ 25.82 |
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9/30/03 |
$ 21.57 | $ 21.56 |
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Distribution Information:
Six Months Capital Gains |
$ .70 | $ .70 |
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Class AARP Lipper Rankings - Small-Cap Core Funds Category as of 3/31/04 |
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Period |
Rank |
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Number of Funds Tracked |
Percentile Ranking |
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1-Year |
155 |
of |
526 |
30 |
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3-Year |
67 |
of |
419 |
16 |
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5-Year |
225 |
of |
296 |
76 |
Source: Lipper Inc. Rankings are historical and do not guarantee future results. Rankings are based on total return with distributions reinvested. Rankings are for Class AARP shares; other share classes may vary.
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Growth of an Assumed $10,000 Investment |
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[] Scudder Small Company Stock Fund - Class AARP [] Russell 2000 Index+ |
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Yearly periods ended March 31 |
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Comparative Results as of 3/31/04 |
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Scudder Small Company Stock Fund |
1-Year |
3-Year |
5-Year |
Life of Fund* |
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Class AARP |
Growth of $10,000 |
$16,251 |
$15,930 |
$16,250 |
$17,857 |
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Average annual total return |
62.51% |
16.79% |
10.20% |
8.44% |
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Class S |
Growth of $10,000 |
$16,261 |
$15,939 |
$16,259 |
$17,868 |
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Average annual total return |
62.61% |
16.81% |
10.21% |
8.44% |
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Russell 2000
Index+
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Growth of $10,000 |
$16,383 |
$13,639 |
$15,855 |
$17,531 |
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Average annual total return |
63.83% |
10.90% |
9.66% |
8.15% |
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The growth of $10,000 is cumulative.
* The Fund commenced operations on February 1, 1997. Index returns begin on January 31, 1997.+ The Russell 2000 Index is an unmanaged capitalization-weighted measure of approximately 2000 small U.S. stocks. Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
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In the following interview, Portfolio Managers Janet Campagna and Robert Wang address the economy, the management team's approach and the performance of Scudder Small Company Stock Fund for the six-month period October 1, 2003 through March 31, 2004.
Q: How would you characterize the market environment during the period?
A: As we entered the fourth quarter of 2003, we saw signs of continued improvement in the economy. Initial estimates of GDP (gross domestic product or, generally, the total value of all goods and services produced in the US) for the third quarter 2003 were revised upward significantly. And jobless claims (a measure of unemployment) began to moderate. These trends were enough to support a risk-taking environment and led to a strong fourth quarter performance for small caps. Nevertheless, given the complexities of the economic recovery, not all data points were wholly positive; consumer confidence levels, for example, were somewhat lower than expected. Further, many investors feared that continued dollar weakness would begin to siphon strength from the previously potent small capitalization (small cap) segment of the market as we entered into 2004.
During the first quarter 2004, the markets struggled with economic and geopolitical issues that together dampened early investor enthusiasm and dampened the traditional January effect. The February release of disappointing labor statistics called into question the absolute certainty of economic recovery. The insurrection in Haiti, the terrorist bombing in Madrid, escalation of fighting between Israelis and Palestinians, and a continuation of the conflict in Iraq heightened risk and muted speculation.
Earnings growth for large- and small-cap stocks, however, continued to surprise on the upside throughout January and February, providing a mooring for investors. In March, better-than-anticipated employment data helped to renew investor confidence, driving the equity markets to a strong finish by the period's end.
Q: How did the fund perform during the period?
A: Contrary to concerns about the impact of dollar weakness and the historically unlikely ability of small-cap stocks to continue their impressive run, we witnessed another exceptional period for small-cap stocks in general and for the fund specifically.
January through March 2004 marked the fourth consecutive quarter in which small-cap stocks, as measured by the benchmark Russell 2000 Index,1 outperformed their large-cap counterparts, as represented by the Standard & Poor's 5002 index.
1 The Russell 2000 Index is an unmanaged, capitalization-weighted measure of 2,000 small US stocks. Index returns assume reinvestment of dividends and, unlike fund returns, do not reflect any fees or expenses. It is not possible to invest directly in an index.2 The Standard & Poor's 500 index is an unmanaged group of stocks generally representative of the US stock market. Index returns represent the reinvestment of all distributions. It is not possible to invest directly in an index.
For the six month period ended March 31, 2004, the Russell 2000 Index outperformed the S&P 500 Index 21.69% versus 14.08%, respectively. Performance of small-cap value stocks was especially strong. For the period, the Russell 2000 Value Index3 rose more than 24%, while the Russell 2000 Growth Index4 gained roughly 19%.
3 The Russell 2000 Value Index measures the performance of small companies with lower price-to-book ratios and lower forecasted growth values than the overall market. Index returns represent the reinvestment of all distributions. It is not possible to invest directly in an index.4 The Russell 2000 Growth Index measures the performance of small companies with greater-than-average growth orientation compared with the overall market. Index returns represent the reinvestment of all distributions. It is not possible to invest directly in an index.
Investor sensitivity to both quality and valuation were advantageous to the fund. We are quite pleased with its performance. For the six-month period October 1, 2003 through March 31, 2004, Scudder Small Company Stock Fund posted a total return of 23.10% (Class A shares unadjusted for sales charges. If sales charges had been included, returns would have been lower.) This fund also provides other share classes. (Please see pages 3 through 7 for performance of other share classes and additional performance information.) The fund outpaced the 21.69% total return of the benchmark Russell 2000 Index and the 21.79% average total return of its peers in the Small-Cap Core Funds category, as tracked by Lipper Inc.5
5 The Lipper Small-Cap Core Funds category is a group of mutual funds, that typically invest at least 75% of their assets in small-cap companies. Small-cap core funds have more latitude in the companies in which they invest.Q: Which stocks or industry sectors contributed most to fund performance during the period?
A: Banks, energy and health care equipment and services were the strongest-performing industry sectors. The vast majority of portfolio return, however, was derived from adept securities selection.
The portfolio's top performer was Terex Corp., a manufacturer of a range of equipment primarily for the construction, infrastructure and surface mining industries. Up powerfully for the period, the company's earnings for each of the past two quarters have far exceeded industry analysts' expectations. Company management also is forecasting strong three-year revenue growth.
Second-best was R&G Financial Corp. - the parent company of R-G Premier Bank of Puerto Rico and R&G Mortgage. The company operates more than 30 bank branches and is the second-largest mortgage financing company in the commonwealth. The stock made great strides based on heavy real estate demand and new construction activity. Also benefiting the company was the recent growth of Puerto Rico's tourist business, as US travelers seek alternative vacation destinations closer to home. Analyst estimates for the stock continue to trend higher.
Toro Co., a maker of turf and landscaping equipment, also was a strong contributor. Among the portfolio's largest holdings, Toro had guided earnings expectations higher based on better-than-expected sales and improved operating performance. Earnings far exceeded analyst expectations. We continue to be optimistic about the company's prospects based on its fundamental strengths, which include an attractive P/E (price-to-earnings ratio), strong cash flow return on invested capital, and higher earnings growth versus the industry average.
Q: Were there stocks or fund management strategies that detracted from performance?
A: The geopolitical events of February and March muted sentiment for more aggressive stocks. As a result, the telecommunications, technology, industrial and utilities sectors suffered losses, despite intermittent gains during the period. Regarding the fund's sector allocation, the commercial services, transportation and real estate sectors were the biggest detractors.
On an individual stock basis, the fund's biggest disappointment was TeleTech Holdings, Inc., the second-largest "teleservices" supplier, providing customer retention and management solutions. The stock had dropped precipitously after the company announced fourth quarter 2003 earnings that were below expectations. TeleTech cited global economic weakness for the earnings shortfall.
The fund's holdings in Hollywood Entertainment Corporation, a retailer offering videos, DVDs and video games for rent, was sold from the portfolio due to weakness. The company had been guiding earnings expectations down due to lower-than-expected same-store sales. The stock was sold before it was announced that the company would be acquired by a private equity firm.
Q: Will you describe your investment management philosophy?
A: Our investment strategy utilizes a quantitative, disciplined stock-selection methodology to examine a vast number of data inputs. Unlike funds that invest in stocks based strictly on quantitative criteria, we also rely on the personal knowledge and experience of everyone on the portfolio management team. Using our methodology, we believe we can evaluate a much larger pool of stocks in a more objective manner than similar funds.
Because we believe that it is imprudent to select stocks based simply on industry sector, market capitalization or investment style, we focus instead on the fundamental strengths of individual companies. We look at both quantifiable data and qualitative considerations, such as the skill and direction of senior management. In general, we tend to hold a larger number of stocks in our portfolio than other similar funds. We may hold a proportionately larger or smaller stake in a company than the fund's benchmark index. In this way, we believe, we can outperform the benchmark over time.
This two-tiered approach - the automated use of quantitative screens together with the ability to make intuitive, common sense judgments about companies - provides tremendous advantages in both strong and weak markets. While most active portfolio managers are able to look at roughly 200 stocks, our methodology enables us to screen approximately 1,000 names in about as much time. The advantage is clear when you look at the last six months, for example. During the period, there was a strong predilection for lower-priced, lower-quality stocks (in some cases, even lower-liquidity stocks) that many active managers would not even have considered. Our screening technique and disciplined analytic models enabled us to evaluate those stocks and, therefore, to participate more fully than many active managers.
Q: Do you have any closing comments for shareholders?
A: Small-cap stocks have outperformed powerfully for longer than they typically do based on history. But we continue to be optimistic about their prospects.
The current economic recovery, with its high dependence on productivity and cost containment, together with low interest rates, have been advantageous to small-cap stocks. In addition, the generally robust earnings growth of small-cap stocks has provided benefits over fixed-income investments (bonds).
We continue to employ a disciplined investment approach that seeks to uncover companies that exhibit strong growth and value characteristics relative to their peer groups. Our portfolio team will continue to seek attractive value by paying particular attention to the quality of the earnings of the companies in which we invest.
As always, we thank our shareholders for their support and look forward to continuing to serve their investment needs.
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.
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Asset Allocation |
3/31/04 |
9/30/03 |
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Common Stocks |
97% |
96% |
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Cash Equivalents |
3% |
4% |
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100% |
100% |
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Stock Characteristics at March 31, 2004 |
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Median Values
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Fund |
Russell 2000 Index |
Fund as % of Index |
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Market Capitalization ($ millions) |
974 | 950 | 103% |
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Price/Earnings |
37.47 | 37.90 | 99% |
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Return on Equity |
11.17 | 6.48 | 172% |
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Sales Growth (10-year) |
16.37 | 14.86 | 116% |
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Number of Stocks |
334 | 1932 | |
Asset allocation and stock characteristics are subject to change.
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Sectors/Largest Equity Holdings at March 31, 2004 |
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1. Financials (20%)
East West Bancorp, Inc. Provider of commercial banking services |
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2. Information Technology (19%)
Sybase, Inc. Provider of database management software |
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3. Consumer Discretionary (15%)
Zales Corp. Operator of retail jewelry stores |
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4. Health Care (14%)
AMERIGROUP Corp. Provider of health care benefits |
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5. Industrials (13%)
Toro Co. Manufacturer of consumer and commercial lawn maintenance and snow removal equipment |
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6. Materials (7%)
Louisiana-Pacific Corp. Producer of lumber, plywood and pulp |
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7. Energy (6%)
Stone Energy Corp. Explorer of oil and gas |
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8. Consumer Staples (2%)
Flowers Food, Inc. Producer and marketer of bakery and dessert products |
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9. Telecommunication Services (2%)
Golden Telecom, Inc. Provider of telecommunication services |
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10. Utilities (1%)
Energen Corp. Producer and distributor of natural gas |
Portfolio holdings are subject to change.
For more complete details about the Fund's investment portfolio, see page 16. A quarterly Fact Sheet is available upon request. Information concerning portfolio holdings of the Fund as of month end is available upon request on the 16th of the following month. Please see the Account Management Resources section for contact information.
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Value ($) |
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Common Stocks 97.4% |
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Consumer Discretionary 14.5%
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Auto Components 1.3% |
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Cooper Tire & Rubber Co.
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28,000 |
568,114 |
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Dura Automotive Systems, Inc. "A"*
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32,841 |
436,457 |
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Stoneridge, Inc.*
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30,200 |
435,484 |
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Tower Automotive, Inc.*
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101,900 |
513,576 |
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1,953,631 |
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Automobiles 0.9% |
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Monaco Coach Corp.
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28,200 |
755,760 |
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Tenneco Automotive, Inc.*
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43,200 |
548,208 |
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1,303,968 |
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Distributors 0.6% |
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Handleman Co.
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38,300 |
916,902 |
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Hotels Restaurants & Leisure 2.9% |
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Ameristar Casinos, Inc.*
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24,700 |
833,600 |
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Bally Total Fitness Holding Corp.*
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86,500 |
506,890 |
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California Pizza Kitchen, Inc.*
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13,531 |
273,542 |
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CEC Entertainment, Inc.*
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28,650 |
994,155 |
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Choice Hotels International, Inc.
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21,600 |
966,384 |
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Isle of Capri Casinos, Inc.*
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34,700 |
872,358 |
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4,446,929 |
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Household Durables 0.4% |
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Tupperware Corp.
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18,200 |
322,499 |
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WCI Communities, Inc.*
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13,200 |
330,396 |
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652,895 |
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Internet & Catalog Retail 0.4% |
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drugstore.com, Inc.*
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26,100 |
140,418 |
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Priceline.com, Inc.*
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16,000 |
431,360 |
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571,778 |
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Leisure Equipment & Products 1.1% |
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Callaway Golf Co.
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51,600 |
979,368 |
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K2, Inc.*
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20,300 |
325,409 |
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Oakley, Inc.
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9,000 |
134,493 |
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RC2 Corp.*
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5,725 |
158,190 |
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SCP Pool Corp.*
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3,600 |
134,136 |
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1,731,596 |
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Media 1.5% |
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AMC Entertainment, Inc.*
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47,000 |
721,450 |
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ComTech Telecommunications Co.*
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8,000 |
185,600 |
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Courier Corp.
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3,200 |
143,200 |
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Insight Communications Co., Inc. "A"*
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52,000 |
520,000 |
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Thomas Nelson, Inc.
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23,300 |
634,226 |
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2,204,476 |
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Specialty Retail 5.2% |
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Aaron Rents, Inc.
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24,350 |
606,071 |
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AnnTaylor Stores Corp.*
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4,200 |
179,821 |
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Charming Shoppes, Inc.*
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78,900 |
614,631 |
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Haverty Furniture Companies, Inc.
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35,500 |
755,440 |
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Hibbett Sporting Goods, Inc.*
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1,200 |
45,768 |
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Hot Topic, Inc.*
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34,700 |
917,815 |
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Lithia Motors, Inc.
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6,200 |
171,430 |
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Movie Gallery, Inc.
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33,400 |
654,306 |
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Pacific Sunwear of California, Inc.*
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37,700 |
925,158 |
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PETCO Animal Supplies, Inc.*
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31,900 |
898,942 |
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Pomeroy IT Solutions, Inc.
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4,600 |
66,700 |
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The Children's Place Retail Stores, Inc.*
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15,292 |
472,994 |
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The Gymboree Corp.*
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27,845 |
466,961 |
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Zales Corp.*
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16,500 |
1,015,575 |
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7,791,612 |
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Textiles, Apparel & Luxury Goods 0.2% |
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Phillips-Van Heusen Corp.
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14,300 |
264,550 |
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Steven Madden Ltd.*
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4,823 |
96,267 |
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360,817 |
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Consumer Staples 2.3%
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Food & Drug Retailing 0.9% |
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7-Eleven, Inc.*
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55,400 |
840,418 |
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The Pantry, Inc.*
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27,098 |
539,792 |
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1,380,210 |
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Food Products 1.4% |
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Flowers Foods, Inc.
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35,550 |
932,832 |
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J & J Snack Foods Corp.*
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14,300 |
646,074 |
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Sanderson Farms, Inc.
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4,800 |
176,304 |
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Smart & Final, Inc.*
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32,500 |
373,100 |
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2,128,310 |
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Energy 6.3%
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Oil & Gas |
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Comstock Resources, Inc.*
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40,200 |
798,774 |
|
Energy Partners Ltd.*
|
26,400 |
352,440 |
|
Houston Exploration Co.*
|
22,400 |
1,001,952 |
|
Magnum Hunter Resources, Inc.*
|
96,600 |
979,524 |
|
Meridian Resource Corp.*
|
75,400 |
453,908 |
|
Overseas Shipholding Group, Inc.
|
28,800 |
1,051,200 |
|
Patina Oil & Gas Corp.
|
30,212 |
793,065 |
|
Range Resources Corp.
|
70,600 |
856,378 |
|
Southwestern Energy Co.*
|
44,300 |
1,068,516 |
|
Stone Energy Corp.*
|
23,700 |
1,172,202 |
|
Tesoro Petroleum Corp.*
|
37,100 |
697,109 |
|
Vintage Petroleum, Inc.
|
21,000 |
309,939 |
|
|
9,535,007 |
|
|
Financials 19.5%
|
||
|
Banks 10.4% |
||
|
Bank of the Ozarks, Inc.
|
21,400 |
589,570 |
|
BankAtlantic Bancorp., Inc. "A"
|
6,800 |
115,328 |
|
BankUnited Financial Corp. "A"*
|
3,500 |
103,950 |
|
Cathay Bancorp, Inc.
|
7,100 |
467,322 |
|
City Holding Co.
|
15,400 |
528,220 |
|
Community Bank System, Inc.
|
3,800 |
175,864 |
|
Corus Bankshares, Inc.
|
2,600 |
104,754 |
|
East West Bancorp, Inc.
|
23,400 |
1,310,400 |
|
Fidelity Bancshares, Inc.
|
5,400 |
197,910 |
|
First Charter Corp.
|
1,600 |
33,680 |
|
First Commonwealth Financial Corp.
|
6,200 |
91,636 |
|
First Federal Financial Corp.*
|
20,800 |
959,504 |
|
First Financial Bankshares, Inc.
|
2,300 |
92,161 |
|
First Republic Bank
|
17,700 |
682,512 |
|
Firstfed America Bancorp., Inc.
|
14,500 |
404,115 |
|
Flagstar Bancorp., Inc.
|
39,100 |
1,002,915 |
|
Greater Bay Bancorp.
|
26,919 |
787,381 |
|
Hancock Holding Co.
|
6,700 |
207,432 |
|
IBERIABANK Corp.
|
6,400 |
376,640 |
|
Local Financial Corp.*
|
3,500 |
76,300 |
|
MAF Bancorp., Inc.
|
2,300 |
100,159 |
|
NetBank, Inc.
|
15,800 |
192,918 |
|
OceanFirst Financial Corp.
|
7,200 |
179,496 |
|
Oriental Finance Group, Inc.
|
5,000 |
159,250 |
|
Pacific Capital Bancorp
|
7,900 |
313,393 |
|
Provident Bankshares Corp.
|
14,400 |
451,872 |
|
R & G Financial Corp. "B"
|
34,550 |
1,193,357 |
|
Republic Bancorp., Inc.
|
11,703 |
164,544 |
|
Seacoast Banking Corp. of Florida
|
8,580 |
177,606 |
|
Sterling Financial Corp.*
|
4,600 |
169,694 |
|
Texas Regional Bancshares, Inc. "A"
|
6,315 |
268,703 |
|
The South Financial Group, Inc.
|
23,393 |
692,199 |
|
UCBH Holdings, Inc.
|
29,200 |
1,169,168 |
|
UMB Financial Corp.
|
5,000 |
253,500 |
|
Umpqua Holdings Corp.
|
7,500 |
151,425 |
|
WesBanco, Inc.
|
3,600 |
109,260 |
|
Westcorp
|
23,200 |
1,022,424 |
|
Wintrust Financial Corp.
|
5,950 |
289,348 |
|
WSFS Financial Corp.
|
7,200 |
361,224 |
|
|
15,727,134 |
|
|
Diversified Financial Services 0.7% |
||
|
Bankrate, Inc.*
|
5,300 |
105,523 |
|
CompuCredit Corp.*
|
24,500 |
517,930 |
|
Gabelli Asset Management, Inc.
|
3,400 |
136,952 |
|
Walter Industries, Inc.
|
7,600 |
93,069 |
|
WFS Financial, Inc.*
|
5,712 |
247,444 |
|
|
1,100,918 |
|
|
Insurance 2.5% |
||
|
American Medical Security Group, Inc.*
|
12,500 |
333,875 |
|
LandAmerica Financial Group, Inc.
|
23,000 |
1,040,980 |
|
Philadelphia Consolidated Holding Corp.*
|
17,100 |
991,800 |
|
Stewart Information Services Corp.
|
20,300 |
797,790 |
|
The Midland Co.
|
8,100 |
202,095 |
|
Zenith National Insurance Corp.
|
8,500 |
333,200 |
|
|
3,699,740 |
|
|
Real Estate 5.9% |
||
|
Alexandria Real Estate Equities, Inc. (REIT)
|
6,800 |
428,400 |
|
Anthracite Capital, Inc. (REIT)
|
9,200 |
117,116 |
|
Anworth Mortgage Asset Corp. (REIT)
|
20,600 |
287,576 |
|
Brandywine Realty Trust (REIT)
|
10,900 |
332,995 |
|
Capital Automotive (REIT)
|
9,900 |
349,569 |
|
Capstead Mortgage Corp. (REIT)
|
10,600 |
195,570 |
|
Colonial Properties Trust (REIT)
|
2,500 |
102,000 |
|
Commercial Net Lease Realty (REIT)
|
10,900 |
215,275 |
|
Essex Property Trust, Inc. (REIT)
|
6,600 |
432,300 |
|
First Industrial Realty Trust, Inc. (REIT)
|
4,400 |
173,800 |
|
Glimcher Realty Trust (REIT)
|
5,900 |
159,890 |
|
Health Care, Inc. (REIT)
|
8,600 |
349,160 |
|
Heritage Property Investment Trust (REIT)
|
4,800 |
149,280 |
|
Highwoods Properties, Inc. (REIT)
|
18,000 |
471,780 |
|
Home Properties of New York, Inc. (REIT)
|
12,300 |
501,225 |
|
Impac Mortgage Holdings, Inc. (REIT)
|
20,400 |
554,880 |
|
Jones Lang Lasalle, Inc.*
|
3,100 |
79,261 |
|
Kilroy Realty Corp. (REIT)
|
10,300 |
365,650 |
|
Kramont Realty Trust (REIT)
|
12,300 |
232,470 |
|
Manufactured Home Communities, Inc. (REIT)
|
4,800 |
169,440 |
|
Nationwide Health Properties, Inc. (REIT)
|
19,200 |
427,584 |
|
Pennsylvania Real Estate Investment Trust (REIT)
|
5,300 |
199,598 |
|
Post Properties, Inc. (REIT)
|
8,800 |
253,440 |
|
Prentiss Properties Trust (REIT)
|
9,800 |
361,620 |
|
PS Business Parks, Inc. (REIT)
|
2,900 |
134,415 |
|
Reckson Associates Realty Corp.
|
5,300 |
149,142 |
|
Redwood Trust, Inc. (REIT)
|
3,400 |
211,378 |
|
SL Green Realty Corp. (REIT)
|
9,300 |
443,610 |
|
Sovran Self Storage, Inc. (REIT)
|
3,800 |
158,726 |
|
Summit Properties, Inc. (REIT)
|
10,200 |
243,270 |
|
Sun Communities, Inc. (REIT)
|
6,800 |
291,176 |
|
Washington Real Estate Investment Trust (REIT)
|
9,100 |
295,295 |
|
|
8,836,891 |
|
|
Health Care 13.8%
|
||
|
Biotechnology 1.9% |
||
|
Digene Corp.*
|
13,600 |
467,296 |
|
Genecor International, Inc.*
|
10,100 |
134,431 |
|
Kos Pharmaceuticals, Inc.*
|
13,400 |
545,916 |
|
Kosan Biosciences, Inc.*
|
9,800 |
103,586 |
|
Martek Biosciences Corp.*
|
13,000 |
741,000 |
|
Serologicals Corp.*
|
20,499 |
420,574 |
|
Tanox, Inc.*
|
31,000 |
461,590 |
|
|
2,874,393 |
|
|
Health Care Equipment & Supplies 4.3% |
||
|
Advanced Medical Optics, Inc.*
|
32,900 |
802,760 |
|
Advanced Neuromodulation Systems, Inc.*
|
10,200 |
369,201 |
|
ALARIS Medical, Inc.*
|
30,800 |
574,420 |
|
DJ Orthopedics, Inc.*
|
13,400 |
346,390 |
|
Immucor, Inc.*
|
7,900 |
144,448 |
|
Integra LifeSciences Holdings Corp.*
|
4,074 |
124,746 |
|
Interpore International, Inc.*
|
8,260 |
118,779 |
|
Kensey Nash Corp.*
|
8,100 |
199,665 |
|
Merit Medical System, Inc.*
|
23,777 |
514,534 |
|
Ocular Sciences, Inc.*
|
29,600 |
862,840 |
|
Quidel Corp.*
|
40,000 |
263,600 |
|
Sola International, Inc.*
|
5,400 |
125,435 |
|
Sybron Dental Specialties, Inc.*
|
34,900 |
951,025 |
|
Ventana Medical Systems, Inc.*
|
15,168 |
621,281 |
|
West Pharmaceutical Services, Inc.
|
2,700 |
100,980 |
|
Wright Medical Group, Inc.*
|
12,100 |
372,576 |
|
|
6,492,680 |
|
|
Health Care Providers & Services 4.7% |
||
|
Allscripts Heathcare Solutions, Inc.*
|
56,700 |
549,990 |
|
AMERIGROUP Corp.*
|
21,700 |
991,690 |
|
Beverly Enterprises, Inc.*
|
44,800 |
286,720 |
|
D&K Healthcare Resources, Inc.
|
35,100 |
359,775 |
|
First Horizon Pharmaceutical Corp.*
|
28,300 |
446,008 |
|
Lifeline Systems, Inc.*
|
4,900 |
92,561 |
|
NDCHealth Corp.
|
12,800 |
346,894 |
|
Omnicell, Inc.*
|
23,600 |
467,516 |
|
Option Care, Inc.*
|
5,600 |
64,120 |
|
PDI, Inc.*
|
17,800 |
450,162 |
|
Province Healthcare Co.*
|
46,900 |
745,710 |
|
RehabCare Group, Inc.*
|
13,500 |
267,940 |
|
Select Medical Corp.
|
51,200 |
855,040 |
|
United Surgical Partners International, Inc.*
|
9,100 |
308,854 |
|
VCA Antech, Inc.*
|
23,500 |
837,305 |
|
|
7,070,285 |
|
|
Pharmaceuticals 2.9% |
||
|
Alpharma, Inc. "A"
|
34,100 |
668,701 |
|
Bentley Pharmaceuticals, Inc.*
|
35,400 |
425,154 |
|
Bradley Pharmaceutical, Inc.*
|
18,000 |
453,240 |
|
Connetics Corp.*
|
30,700 |
680,619 |
|
Ligand Pharmaceuticals, Inc.*
|
31,600 |
634,196 |
|
Noven Pharmaceuticals, Inc.*
|
8,798 |
190,660 |
|
Perrigo Co.
|
34,549 |
692,707 |
|
Pozen, Inc.*
|
32,400 |
447,768 |
|
VIVUS, Inc.*
|
33,918 |
200,232 |
|
|
4,393,277 |
|
|
Industrials 12.5%
|
||
|
Aerospace & Defense 0.9% |
||
|
Engineered Support Systems, Inc.
|
15,400 |
751,366 |
|
Mercury Computer Systems, Inc.*
|
13,600 |
346,800 |
|
Moog, Inc. "A"*
|
3,000 |
101,891 |
|
Teledyne Technologies, Inc.*
|
6,200 |
115,940 |
|
|
1,315,997 |
|
|
Airlines 0.5% |
||
|
America West Holdings Corp. "B"
|
26,500 |
252,545 |
|
Frontier Airlines, Inc.*
|
53,300 |
555,386 |
|
|
807,931 |
|
|
Building Products 0.5% |
||
|
Jacuzzi Brands, Inc.*
|
23,200 |
217,616 |
|
USG Corp.*
|
27,500 |
481,547 |
|
|
699,163 |
|
|
Commercial Services & Supplies 4.7% |
||
|
AMREP Corp.
|
17,300 |
288,045 |
|
Bright Horizons Family Solutions, Inc.*
|
11,600 |
547,056 |
|
Casella Waste Systems, Inc.*
|
3,411 |
49,596 |
|
Consolidated Graphics, Inc.*
|
20,600 |
792,070 |
|
Cornell Corrections, Inc.*
|
9,600 |
111,072 |
|
infoUSA, Inc.*
|
36,400 |
382,564 |
|
Lightbridge, Inc.*
|
17,000 |
100,300 |
|
Mobile Mini, Inc.*
|
3,900 |
67,470 |
|
Navigant Consulting, Inc.*
|
13,700 |
276,708 |
|
NCO Group, Inc.*
|
20,921 |
488,924 |
|
SOURCECORP, Inc.*
|
29,400 |
779,100 |
|
Strayer Education, Inc.
|
3,797 |
444,911 |
|
TeleTech Holdings, Inc.*
|
86,200 |
539,612 |
|
The Brinks Co.
|
18,500 |
510,230 |
|
United Rentals, Inc.*
|
36,900 |
655,713 |
|
United Stationers, Inc.*
|
25,800 |
1,086,180 |
|
|
7,119,551 |
|
|
Construction & Engineering 0.5% |
||
|
Dycom Industries, Inc.*
|
13,200 |
350,064 |
|
Granite Construction, Inc.
|
11,600 |
275,732 |
|
Quanta Services, Inc.*
|
19,000 |
134,520 |
|
|
760,316 |
|
|
Electrical Equipment 0.6% |
||
|
Acuity Brands, Inc.
|
12,700 |
303,276 |
|
Franklin Electric Co.
|
4,265 |
271,595 |
|
Genlyte Group, Inc.*
|
2,500 |
140,100 |
|
Vicor Corp.*
|
19,587 |
240,333 |
|
|
955,304 |
|
|
Industrial Conglomerates 0.6% |
||
|
Tredegar Corp.
|
67,000 |
980,210 |
|
Machinery 3.2% |
||
|
Flowserve Corp.*
|
40,000 |
838,000 |
|
Nordson Corp.
|
8,300 |
310,918 |
|
Terex Corp.*
|
27,400 |
1,012,978 |
|
The Manitowoc Co., Inc.
|
31,000 |
916,980 |
|
Toro Co.
|
22,000 |
1,364,000 |
|
UNOVA, Inc.*
|
18,000 |
388,980 |
|
|
4,831,856 |
|
|
Road & Rail 1.0% |
||
|
Covenant Transport, Inc. "A"*
|
33,900 |
611,217 |
|
Dollar Thrifty Automotive Group, Inc.*
|
33,100 |
836,437 |
|
Heartland Express, Inc.
|
400 |
9,112 |
|
|
1,456,766 |
|
|
Information Technology 18.5%
|
||
|
Communications Equipment 2.9% |
||
|
Adaptec, Inc.*
|
28,800 |
252,288 |
|
Aspect Communications Corp.*
|
25,300 |
396,451 |
|
Audiovox Corp. "A"*
|
21,458 |
429,160 |
|
C-COR.net Corp.*
|
16,600 |
232,732 |
|
CommScope, Inc.*
|
40,800 |
683,196 |
|
Computer Network Technology Corp.*
|
34,885 |
281,693 |
|
Echelon Corp.*
|
17,900 |
201,733 |
|
F5 Networks, Inc.*
|
13,800 |
467,130 |
|
Packeteer, Inc.*
|
22,200 |
293,040 |
|
Powerwave Technologies, Inc.*
|
65,100 |
513,060 |
|
ViaSat, Inc.*
|
11,990 |
302,699 |
|
Westell Technologies, Inc. "A"*
|
48,800 |
356,240 |
|
|
4,409,422 |
|
|
Computers & Peripherals 1.7% |
||
|
Avid Technology, Inc.*
|
2,700 |
124,551 |
|
Dot Hill Systems Corp.*
|
17,500 |
175,350 |
|
Hutchinson Technology, Inc.*
|
23,100 |
648,186 |
|
Intergraph Corp.*
|
30,200 |
730,236 |
|
Komag, Inc.*
|
31,700 |
583,280 |
|
SBS Technologies, Inc.*
|
22,200 |
343,212 |
|
|
2,604,815 |
|
|
Electronic Equipment & Instruments 3.5% |
||
|
BEI Technologies, Inc.
|
15,569 |
349,680 |
|
Checkpoint Systems, Inc.*
|
40,100 |
757,890 |
|
Daktronics, Inc.*
|
9,300 |
209,901 |
|
Global Imaging Systems, Inc.*
|
8,100 |
269,082 |
|
KEMET Corp.*
|
57,100 |
818,814 |
|
Littlefuse, Inc.*
|
6,688 |
251,447 |
|
MTS Systems Corp.
|
25,000 |
691,750 |
|
Park Electrochemical Corp.
|
17,600 |
445,280 |
|
Rofin-Sinar Technologies, Inc.*
|
13,404 |
400,110 |
|
Varian, Inc.*
|
13,500 |
542,295 |
|
Zygo Corp.*
|
28,200 |
440,766 |
|
|
5,177,015 |
|
|
Internet Software & Services 1.8% |
||
|
Ask Jeeves, Inc.*
|
5,700 |
203,661 |
|
BroadVision, Inc.*
|
20,200 |
123,826 |
|
Digital Insight Corp.*
|
10,400 |
215,488 |
|
EarthLink, Inc.*
|
23,700 |
209,982 |
|
eSPEED, INC.*
|
11,400 |
238,944 |
|
InfoSpace, Inc.*
|
10,300 |
400,361 |
|
j2 Global Communications, Inc.*
|
15,000 |
338,400 |
|
Sohu.Com, Inc.*
|
12,300 |
306,147 |
|
Watchguard Technologies, Inc.*
|
4,500 |
35,190 |
|
WebEx Communications, Inc.*
|
15,300 |
454,869 |
|
Websense, Inc.*
|
7,100 |
210,231 |
|
|
2,737,099 |
|
|
IT Consulting & Services 0.1% |
||
|
Efunds Corp.*
|
7,300 |
119,720 |
|
Semiconductors & Semiconductor Equipment 3.9% |
||
|
Advanced Energy Industries, Inc.*
|
17,500 |
360,694 |
|
Cirrus Logic, Inc.*
|
56,500 |
428,270 |
|
Diodes, Inc.
|
12,458 |
271,709 |
|
ESS Technology, Inc.*
|
31,495 |
458,189 |
|
Helix Technology Corp.
|
5,600 |
135,800 |
|
Integrated Silicon Solution, Inc.*
|
30,449 |
537,169 |
|
Mattson Technology, Inc.*
|
18,200 |
217,672 |
|
Micrel, Inc.*
|
42,200 |
563,370 |
|
Microsemi Corp.*
|
40,700 |
556,776 |
|
Mykrolis Corp.*
|
38,000 |
541,880 |
|
Photronics, Inc.*
|
14,400 |
255,456 |
|
RF Micro Devices, Inc.*
|
74,300 |
625,785 |
|
Siliconix, Inc.*
|
6,600 |
307,758 |
|
Standard Microsystems Corp.*
|
6,338 |
171,093 |
|
Zoran Corp.*
|
28,700 |
498,232 |
|
|
5,929,853 |
|
|
Software 4.6% |
||
|
ANSYS, Inc.*
|
3,100 |
123,194 |
|
Aspen Technology, Inc.*
|
43,500 |
355,395 |
|
Autobytel, Inc.*
|
16,957 |
223,832 |
|
Charles River Associates, Inc.*
|
1,600 |
52,458 |
|
Concur Technologies, Inc.*
|
41,500 |
464,800 |
|
E. Piphany*
|
17,600 |
127,072 |
|
Embarcadero Technologies, Inc.*
|
13,300 |
170,772 |
|
eResearchTechnology, Inc.*
|
22,600 |
633,930 |
|
Kronos, Inc.*
|
12,500 |
406,625 |
|
Micromuse, Inc.*
|
54,400 |
424,320 |
|
MICROS Systems, Inc.*
|
16,700 |
754,005 |
|
Microstrategy Inc.*
|
9,800 |
522,340 |
|
MRO Software, Inc.*
|
20,300 |
235,886 |
|
Portal Software, Inc.*
|
17,500 |
117,950 |
|
SS&C Technologies, Inc.
|
24,750 |
600,682 |
|
Sybase, Inc.*
|
44,100 |
925,659 |
|
TIBCO Software, Inc.*
|
22,000 |
179,740 |
|
Tradestation Group, Inc.*
|
16,897 |
113,717 |
|
Transaction Systems Architects, Inc. "A"*
|
12,828 |
296,840 |
|
Verity, Inc.*
|
11,200 |
153,104 |
|
|
6,882,321 |
|
|
Materials 7.1%
|
||
|
Chemicals 3.3% |
||
|
Cambrex Corp.
|
19,500 |
524,550 |
|
FMC Corp.*
|
16,800 |
719,376 |
|
Georgia Gulf Corp.
|
36,100 |
1,088,415 |
|
Hercules, Inc.*
|
80,700 |
926,436 |
|
Macdermid, Inc.
|
29,500 |
1,038,105 |
|
OM Group, Inc.*
|
20,800 |
632,320 |
|
|
4,929,202 |
|
|
Construction Materials 0.1% |
||
|
Eagle Materials, Inc.
|
1,700 |
100,045 |
|
Containers & Packaging 0.9% |
||
|
Crown Holdings, Inc.*
|
54,600 |
513,830 |
|
Silgan Holdings, Inc.*
|
19,300 |
882,589 |
|
|
1,396,419 |
|
|
Metals & Mining 1.8% |
||
|
Carpenter Technology Corp.
|
17,000 |
558,960 |
|
Hecla Mining Co.*
|
73,100 |
614,771 |
|
Quanex Corp.
|
14,000 |
594,860 |
|
Steel Dynamics, Inc.*
|
40,800 |
1,011,024 |
|
|
2,779,615 |
|
|
Paper & Forest Products 1.0% |
||
|
Louisiana-Pacific Corp.
|
44,500 |
1,148,100 |
|
Potlatch Corp.
|
9,800 |
399,350 |
|
|
1,547,450 |
|
|
Telecommunication Services 1.7%
|
||
|
Diversified Telecommunication Services 1.0% |
||
|
Cincinnati Bell, Inc.*
|
95,500 |
388,685 |
|
Golden Telecom, Inc.
|
18,700 |
636,361 |
|
Primus Telecommunications Group, Inc.*
|
24,362 |
204,884 |
|
Talk America Holdings, Inc.*
|
32,600 |
276,122 |
|
|
1,506,052 |
|
|
Wireless Telecommunication Services 0.7% |
||
|
At Road, Inc.*
|
9,400 |
115,338 |
|
Triton PCS Holdings, Inc. "A"*
|
55,500 |
304,695 |
|
Western Wireless Corp. "A"*
|
26,500 |
619,305 |
|
|
1,039,338 |
|
|
Utilities 1.2%
|
||
|
Gas Utilities 0.8% |
||
|
Energen Corp.
|
28,300 |
1,167,375 |
|
New Jersey Resources Corp.
|
800 |
30,240 |
|
|
1,197,615 |
|
|
Multi-Utilities 0.4% |
||
|
Avista Corp.
|
8,100 |
153,252 |
|
Sierra Pacific Resources*
|
60,900 |
450,575 |
|
|
603,827 |
|
|
Total Common Stocks (Cost $127,153,333)
|
147,060,351 |
|
|
|
Principal Amount ($) |
Value ($) |
|
|
|
|
|
US Government Backed 0.2% |
||
|
US Treasury Bills, 0.925%**, 4/29/2004 (b) (Cost $349,195)
|
350,000 |
349,740 |
|
|
|
Value ($) |
|
|
|
|
|
Cash Equivalents 2.4% |
||
|
Scudder Cash Management QP Trust 1.10% (c) (Cost $3,677,623) |
3,677,623 |
3,677,623 |
|
Total Investment Portfolio - 100.0% (Cost $131,180,151) (a)
|
151,087,714 |
|
* Non-income producing security.
** Annualized yield at the time of purchase; not a coupon rate.
(a) The cost for federal income tax purposes was $131,233,305. At March 31, 2004, net unrealized appreciation for all securities based on tax cost was $19,854,409. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $22,805,739 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $2,951,330.
(b) At March 31, 2004, this security has been segregated, in whole or in part, to cover initial margin requirements for open futures contracts.
(c) Scudder Cash Management QP Trust is also managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.
At March 31, 2004, open futures contracts purchased were as follows:
|
Futures
|
Expiration Date |
Contracts |
Aggregate Face Value ($) |
Value ($) |
Unrealized
Appreciation/ |
|
Russell 2000 Index |
6/17/2004 | 13 | 3,714,778 | 3,838,900 | 124,122 |
The accompanying notes are an integral part of the financial statements.
|
|
|
Statement of Assets and Liabilities as of March 31, 2004 (Unaudited) |
|
|
Assets
|
|
|
Investments: Investments in securities, at value (cost $127,502,528) |
$ 147,410,091 |
|
Investment in Scudder Cash Management QP Trust (cost $3,677,623)
|
3,677,623 |
|
Total investments in securities, at value (cost $131,180,151) |
151,087,714 |
|
Cash |
10,000 |
|
Receivable for investments sold |
19,839,356 |
|
Receivable for Fund shares sold |
3,278,747 |
|
Dividends receivable |
85,108 |
|
Interest receivable |
4,162 |
|
Receivable for daily variation margin on open futures contracts |
19,500 |
|
Total assets |
174,324,587 |
|
Liabilities
|
|
|
Payable for investments purchased |
19,560,827 |
|
Payable for Fund shares redeemed |
150,168 |
|
Accrued management fee |
94,254 |
|
Other accrued expenses and payables |
62,903 |
|
Total liabilities |
19,868,152 |
|
Net assets, at value
|
$ 154,456,435 |
|
Net Assets
|
|
|
Net assets consist of: Accumulated net investment loss |
(17,052) |
|
Net unrealized appreciation (depreciation) on: Investments |
19,907,563 |
|
Futures
|
124,122 |
|
Accumulated net realized gain (loss) |
16,427,198 |
|
Paid-in capital |
118,014,604 |
|
Net assets, at value
|
$ 154,456,435 |
The accompanying notes are an integral part of the financial statements.
|
Statement of Assets and Liabilities as of March 31, 2004 (Unaudited) (continued) |
|
|
Net Asset Value
|
|
|
Class A Net Asset Value and redemption price per share ($12,585,662 / 491,363 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) |
$ 25.61 |
|
Maximum offering price per share (100 / 94.25 of $25.61) |
$ 27.17 |
|
Class B Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share ($2,806,608 / 112,112 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) |
$ 25.03 |
|
Class C Net Asset Value and redemption price (subject to contingent deferred sales charge) per share ($1,511,841 / 60,364 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) |
$ 25.05 |
|
Class AARP Net Asset Value, offering and redemption price per share ($66,021,877 / 2,557,176 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) |
$ 25.82 |
|
Class S Net Asset Value, offering and redemption price per share ($71,530,447 / 2,770,733 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) |
$ 25.82 |
The accompanying notes are an integral part of the financial statements.
|
Statement of Operations for the six months ended March 31, 2004 (Unaudited) |
|
|
Investment Income
|
|
|
Income: Dividends (net of foreign taxes withheld of $1,086) |
$ 798,766 |
|
Interest - Scudder Cash Management QP Trust |
34,166 |
|
Interest |
1,196 |
|
Total Income |
834,128 |
|
Expenses: |
|
|
Management fee |
511,370 |
|
Administrative fee |
309,038 |
|
Distribution service fees |
26,214 |
|
Trustees' fees and expenses |
2,981 |
|
Other |
1,577 |
|
Total expenses |
851,180 |
|
Net investment income (loss)
|
(17,052) |
|
Realized and Unrealized Gain (Loss) on Investment Transactions
|
|
|
Net realized gain (loss) from: Investments |
18,852,874 |
|
Futures |
579,849 |
|
|
19,432,723 |
|
Net unrealized appreciation (depreciation) during the period on: Investments |
6,622,820 |
|
Futures |
268,086 |
|
|
6,890,906 |
|
Net gain (loss) on investment transactions
|
26,323,629 |
|
Net increase (decrease) in net assets resulting from operations
|
$ 26,306,577 |
The accompanying notes are an integral part of the financial statements.
|
Statement of Changes in Net Assets |
||
|
Increase (Decrease) in Net Assets
|
Six Months Ended March 31, 2004 (Unaudited) |
Year Ended September 30, 2003 |
|
Operations: Net investment income (loss) |
$ (17,052) | $ (54,871) |
|
Net realized gain (loss) on investment transactions |
19,432,723 | 2,009,362 |
|
Net unrealized appreciation (depreciation) on
investment transactions during the period |
6,890,906 | 24,154,227 |
|
Net increase (decrease) in net assets resulting from
operations |
26,306,577 | 26,108,718 |
|
Distributions to shareholders from: Net realized gains: Class A |
(201,959) | - |
|
Class B |
(69,815) | - |
|
Class C |
(37,647) | - |
|
Class AARP |
(1,678,420) | - |
|
Class S |
(1,770,725) | - |
|
Fund share transactions: Proceeds from shares sold |
38,764,306 | 25,992,937 |
|
Reinvestment of distributions |
3,588,423 | - |
|
Cost of shares redeemed |
(19,902,151) | (23,722,161) |
|
Net increase (decrease) in net assets from Fund share
transactions |
22,450,578 | 2,270,776 |
|
Increase (decrease) in net assets
|
44,998,589 | 28,379,494 |
|
Net assets at beginning of period |
109,457,846 | 81,078,352 |
|
Net assets at end of period (including accumulated net
investment loss of $17,052 for March 31, 2004) |
$ 154,456,435 |
$ 109,457,846 |
The accompanying notes are an integral part of the financial statements.
|
|
|
Class A |
||||
|
Years Ended September 30, |
2004a |
2003 |
2002 |
2001b |
|
Selected Per Share Data
|
||||
|
Net asset value, beginning of period
|
$ 21.43 |
$ 16.02 |
$ 16.04 |
$ 18.50 |
|
Income (loss) from investment operations: Net investment income (loss)c |
(.03) | (.05) | (.08) | (.03) |
|
Net realized and unrealized gain (loss) on
investment transactions
|
4.91 | 5.46 | .06 | (2.43) |
|
Total from investment operations |
4.88 | 5.41 | (.02) | (2.46) |
|
Less distributions from: Net realized gains on investment transactions |
(.70) | - | - | - |
|
Net asset value, end of period
|
$ 25.61 |
$ 21.43 |
$ 16.02 |
$ 16.04 |
|
Total Return (%)d |
23.10** | 33.77 | (.12) | (13.30)** |
|
Ratios to Average Net Assets and Supplemental Data
|
||||
|
Net assets, end of period ($ millions) |
13 | 5 | 1 | .009 |
|
Ratio of expenses (%) |
1.43* | 1.42 | 1.48 | 1.48* |
|
Ratio of net investment income (loss) (%) |
(.21)* | (.25) | (.44) | (.60)* |
|
Portfolio turnover rate (%) |
171* | 164 | 146 | 48 |
|
a For the six months ended March 31, 2004 (Unaudited). b For the period from June 25, 2001 (commencement of sales of Class A shares) to September 30, 2001. c Based on average shares outstanding during the period. d Total return does not reflect the effect of any sales charges. * Annualized ** Not annualized |
||||
|
|
||||
|
Class B |
||||
|
Years Ended September 30, |
2004a |
2003 |
2002 |
2001b |
|
Selected Per Share Data
|
||||
|
Net asset value, beginning of period
|
$ 21.03 |
$ 15.85 |
$ 16.01 |
$ 18.50 |
|
Income (loss) from investment operations: Net investment income (loss)c |
(.12) | (.19) | (.22) | (.06) |
|
Net realized and unrealized gain (loss) on
investment transactions
|
4.82 | 5.37 | .06 | (2.43) |
|
Total from investment operations |
4.70 | 5.18 | (.16) | (2.49) |
|
Less distributions from: Net realized gains on investment transactions |
(.70) | - | - | - |
|
Net asset value, end of period
|
$ 25.03 |
$ 21.03 |
$ 15.85 |
$ 16.01 |
|
Total Return (%)d |
22.58** | 32.68 | (1.00) | (13.46)** |
|
Ratios to Average Net Assets and Supplemental Data
|
||||
|
Net assets, end of period ($ millions) |
3 | 2 | .9 | .02 |
|
Ratio of expenses (%) |
2.26* | 2.25 | 2.28 | 2.28* |
|
Ratio of net investment income (loss) (%) |
(1.04)* | (1.08) | (1.24) | (1.40)* |
|
Portfolio turnover rate (%) |
171* | 164 | 146 | 48 |
|
a For the six months ended March 31, 2004 (Unaudited). b For the period from June 25, 2001 (commencement of sales of Class B shares) to September 30, 2001. c Based on average shares outstanding during the period. d Total return does not reflect the effect of any sales charges. * Annualized ** Not annualized |
||||
|
|
||||
|
Class C |
||||
|
Years Ended September 30, |
2004a |
2003 |
2002 |
2001b |
|
Selected Per Share Data
|
||||
|
Net asset value, beginning of period
|
$ 21.04 |
$ 15.85 |
$ 16.01 |
$ 18.50 |
|
Income (loss) from investment operations: Net investment income (loss)c |
(.12) | (.20) | (.22) | (.06) |
|
Net realized and unrealized gain (loss) on
investment transactions
|
4.83 | 5.39 | .06 | (2.43) |
|
Total from investment operations |
4.71 | 5.19 | (.16) | (2.49) |
|
Less distributions from: Net realized gains on investment transactions |
(.70) | - | - | - |
|
Net asset value, end of period
|
$ 25.05 |
$ 21.04 |
$ 15.85 |
$ 16.01 |
|
Total Return (%)d |
22.57** | 32.74 | (1.00) | (13.46)** |
|
Ratios to Average Net Assets and Supplemental Data
|
||||
|
Net assets, end of period ($ millions) |
1.5 | .9 | .1 | .002 |
|
Ratio of expenses (%) |
2.23* | 2.21 | 2.26 | 2.25* |
|
Ratio of net investment income (loss) (%) |
(1.01)* | (1.04) | (1.22) | (1.37)* |
|
Portfolio turnover rate (%) |
171* | 164 | 146 | 48 |
|
a For the six months ended March 31, 2004 (Unaudited). b For the period from June 25, 2001 (commencement of sales of Class C shares) to September 30, 2001. c Based on average shares outstanding during the period. d Total return does not reflect the effect of any sales charges. * Annualized ** Not annualized |
||||
|
|
||||||
|
Class AARP |
||||||
|
Years Ended September 30, |
2004a |
2003 |
2002 |
2001 |
2000 |
1999 |
|
Selected Per Share Data
|
||||||
|
Net asset value, beginning of
period
|
$ 21.57 |
$ 16.09 |
$ 16.06 |
$ 18.32 |
$ 17.89 |
$ 16.93 |
|
Income (loss) from investment
operations: Net investment income (loss)b |
0.00c | (.01) | (.03) | (.06) | (.08) | .02 |
|
Net realized and unrealized
gain (loss) on investment
transactions
|
4.95 | 5.49 | .06 | (2.20) | .53 | .96 |
|
Total from investment operations |
4.95 | 5.48 | .03 | (2.26) | .45 | .98 |
|
Less distributions from: Net investment income |
- | - | - | - | (.02) | (.02) |
|
Net realized gains on
investment transactions
|
(.70) | - | - | - | - | - |
|
Net asset value, end of period
|
$ 25.82 |
$ 21.57 |
$ 16.09 |
$ 16.06 |
$ 18.32 |
$ 17.89 |
|
Total Return (%) |
23.18** | 34.06 | .19 | (12.34) | 2.41d | 5.70 |
|
Ratios to Average Net Assets and Supplemental Data
|
||||||
|
Net assets, end of period
($ millions) |
66 | 50 | 37 | 34 | 48 | 66 |
|
Ratio of expenses before
expense reductions (%) |
1.21* | 1.21 | 1.21 | 1.23 | 1.86e | 1.70 |
|
Ratio of expenses after expense
reductions (%) |
1.21* | 1.21 | 1.21 | 1.23 | 1.73e | 1.70 |
|
Ratio of net investment income
(loss) (%) |
.01* | (.04) | (.17) | (.32) | (.46) | .13 |
|
Portfolio turnover rate (%) |
171* | 164 | 146 | 48 | 48 | 17 |
|
a For the six months ended March 31, 2004 (Unaudited). b Based on average shares outstanding during the period. c Amount less than $.005 d Total return would have been lower had certain expenses not been reduced. e The ratios of operating expenses excluding costs incurred in connection with a fund complex reorganization before and after expense reductions were 1.78% and 1.65%, respectively. * Annualized ** Not annualized |
||||||
|
|
|||||
|
Class S |
|||||
|
Years Ended September 30, |
2004a |
2003 |
2002 |
2001 |
2000b |
|
Selected Per Share Data
|
|||||
|
Net asset value, beginning of
period
|
$ 21.56 |
$ 16.08 |
$ 16.05 |
$ 18.30 |
$ 18.50 |
|
Income (loss) from investment
operations: Net investment income (loss)c |
.00d | (.01) | (.03) | (.06) | .00d |
|
Net realized and unrealized gain
(loss) on investment transactions
|
4.96 | 5.49 | .06 | (2.19) | (.20) |
|
Total from investment operations |
4.96 | 5.48 | .03 | (2.25) | (.20) |
|
Less distributions from: Net realized gains on investment transactions |
(.70) | - | - | - | - |
|
Net asset value, end of period
|
$ 25.82 |
$ 21.56 |
$ 16.08 |
$ 16.05 |
$ 18.30 |
|
Total Return (%) |
23.24** | 34.08 | .19 | (12.30) | (1.14)** |
|
Ratios to Average Net Assets and Supplemental Data
|
|||||
|
Net assets, end of period ($ millions) |
72 | 52 | 41 | 42 | 46 |
|
Ratio of expenses (%) |
1.21* | 1.21 | 1.21 | 1.23 | 1.19e* |
|
Ratio of net investment income
(loss) (%) |
.01* | (.04) | (.17) | (.32) | (.21)* |
|
Portfolio turnover rate (%) |
171* | 164 | 146 | 48 | 48 |
|
a For the six months ended March 31, 2004 (Unaudited). b For the period from July 17, 2000 (commencement of sales of Class S shares) to September 30, 2000. c Based on average shares outstanding during the period. d Amount is less than $.005. e The ratio of operating expenses includes a one-time reduction in reorganization costs from fiscal 2000. The ratio without this reduction was 1.24%. * Annualized ** Not annualized |
|||||
|
|
A. Significant Accounting Policies
Scudder Small Company Stock Fund (the "Fund") is a diversified series of Investment Trust (the "Trust") which is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company organized as a Massachusetts business trust.
The Fund offers multiple classes of shares which provide investors with different purchase options. Class A shares are offered to investors subject to an initial sales charge. Class B shares are offered without an initial sales charge but are subject to higher ongoing expenses than Class A shares and a contingent deferred sales charge payable upon certain redemptions. Class B shares automatically convert to Class A shares six years after issuance. Class C shares are offered to investors without an initial sales charge but are subject to higher ongoing expenses than Class A shares and a contingent deferred sales charge payable upon certain redemptions within one year of purchase. Prior to March 1, 2004, Class C shares were offered with an initial sales charge. Class C shares do not convert into another class. Shares of Class AARP are designed for members of AARP. Class S shares of the Fund are generally not available to new investors. Class AARP and S shares are not subject to initial or contingent deferred sales charges.
Investment income, realized and unrealized gains and losses and certain fund-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares, except that each class bears certain expenses unique to that class such as distribution service fees, administrative fees and certain other class-specific expenses. Differences in class-level expenses may result in payment of different per share dividends by class. All shares of the Fund have equal rights with respect to voting subject to class-specific arrangements.
The Fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Fund in the preparation of its financial statements.
Security Valuation. 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 and Scudder Cash Management QP Trust 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 Trustees.
Futures Contracts. A futures contract is an agreement between a buyer or seller and an established futures exchange or its clearinghouse in which the buyer or seller agrees to take or make a delivery of a specific amount of a financial instrument at a specified price on a specific date (settlement date). The Fund may enter into futures contracts as a hedge against anticipated interest rate, currency or equity market changes, and for duration management, risk management and return enhancement purposes.
Upon entering into a futures contract, the Fund is required to deposit with a financial intermediary an amount ("initial margin") equal to a certain percentage of the face value indicated in the futures contract. Subsequent payments ("variation margin") are made or received by the Fund dependent upon the daily fluctuations in the value of the underlying security and are recorded for financial reporting purposes as unrealized gains or losses by the Fund. When entering into a closing transaction, the Fund will realize a gain or loss equal to the difference between the value of the futures contract to sell and the futures contract to buy. Futures contracts are valued at the most recent settlement price.
Certain risks may arise upon entering into futures contracts, including the risk that an illiquid secondary market will limit the Fund's ability to close out a futures contract prior to the settlement date and that a change in the value of a futures contract may not correlate exactly with the changes in the value of the securities or currencies hedged. When utilizing futures contracts to hedge, the Fund gives up the opportunity to profit from favorable price movements in the hedged positions during the term of the contract.
Federal Income Taxes. The Fund's policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable income to its shareholders. Accordingly, the Fund paid no federal income taxes and no federal income tax provision was required.
Distribution of Income and Gains. Distributions of net investment income, if any, are made annually. Net realized gains from investment transactions, in excess of available capital loss carryforwards, would be taxable to the Fund if not distributed, and, therefore, will be distributed to shareholders at least annually.
The timing and characterization of certain income and capital gains distributions are determined annually in accordance with federal tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences primarily relate to net investment losses incurred by the Fund and certain securities sold at loss. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of the Fund.
The tax character of current year distributions, if any, will be determined at the end of the fiscal year.
Expenses. Expenses of the Trust arising in connection with a specific fund are allocated to that fund. Other Trust expenses which cannot be directly attributed to a fund are apportioned among the funds in the Trust.
Other. Investment transactions are accounted for on a trade date plus one basis for daily net asset valuation calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Dividend income is recorded on the ex-dividend date. Realized gains and losses from investment transactions are recorded on an identified cost basis.
B. Purchases and Sales of Securities
During the six months ended March 31, 2004, purchases and sales of investment securities (excluding short-term investments) aggregated $134,184,848 and $117,691,489, respectively.
C. Related Parties
Management Agreement. Under the Management Agreement with Deutsche Investment Management Americas Inc. ("DeIM" or the "Advisor"), the Advisor directs the investments of the Fund in accordance with its investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Fund. In addition to portfolio management services, the Advisor provides certain administrative services in accordance with the Management Agreement. The management fee payable under the Management Agreement is equal to an annual rate of 0.75% of the first $500,000,000 of the Fund's average daily net assets, 0.70% of the next $500,000,000 of such net assets and 0.65% of such net assets in excess of $1,000,000,000, computed and accrued daily and payable monthly. Accordingly, for the six months ended March 31, 2004, the fee pursuant to the Management Agreement was equivalent to an annual effective rate of 0.75% of the Fund's average daily net assets.
Administrative Fee. Under the Administrative Agreement (the "Administrative Agreement"), the Advisor provides or pays others to provide substantially all of the administrative services required by the Fund (other than those provided by the Advisor under its Management Agreement with the Fund, as described above) in exchange for the payment by each class of the Fund of an administrative services fee (the "Administrative Fee") of 0.475%, 0.525%, 0.50%, 0.45% and 0.45% of the average daily net assets for Class A, B, C, AARP and S shares, respectively, computed and accrued daily and payable monthly.
Various third-party service providers, some of which are affiliated with the Advisor, provide certain services to the Fund under the Administrative Agreement. Scudder Fund Accounting Corporation, a subsidiary of the Advisor, computes the net asset value for the Fund and maintains the accounting records of the Fund. Scudder Investments Service Company, an affiliate of the Advisor, is the transfer, shareholder service and dividend-paying agent for Class A, B and C shares of the Fund. Scudder Service Corporation, also a subsidiary of the Advisor, is the transfer, shareholder service and dividend-paying agent for Class AARP and S shares of the Fund. Scudder Trust Company, also an affiliate of the Advisor, provides subaccounting and recordkeeping services for the shareholders in certain retirement and employee benefit plans. These affiliated entities have in turn entered into various agreements with third-party service provides to provide these services. In addition, other service providers not affiliated with the Advisor provide certain services (i.e., custody, legal and audit) to the Fund under the Administrative Agreement. The Advisor pays the service providers for the provision of their services to the Fund and pays other Fund expenses, including insurance, registration, printing, postage and other costs. Certain expenses of the Fund will not be borne by the Advisor under the Administrative Agreement, such as taxes, brokerage, interest and extraordinary expenses, and the fees and expenses of the Independent Trustees (including the fees and expenses of their independent counsel). For the six months ended March 31, 2004, the Administrative Fee was as follows:
|
Administrative Fee |
Total Aggregated |
Unpaid at March 31, 2004 |
|
Class A |
$ 18,173 | $ 3,843 |
|
Class B |
6,486 | 1,182 |
|
Class C |
3,325 | 633 |
|
Class AARP |
145,111 | 27,184 |
|
Class S |
135,943 | 26,182 |
|
|
$ 309,038 |
$ 59,024 |
The Administrative Agreement between the Advisor and the Fund had been scheduled to terminate effective September 30, 2003. The Advisor and the Fund have agreed to temporarily continue the Administrative Agreement until March 31, 2004. Effective April 1, 2004, the Fund will directly bear the cost of expenses formerly covered under the Administrative Agreement. In addition, effective October 1, 2003 through September 30, 2005, the Advisor has agreed to contractually waive all or a portion of its management fee and/or administrative fee and reimburse or pay certain operating expenses of the Fund to the extent necessary to maintain the operating expenses of each class at 1.50% of average daily net assets (excluding certain expenses such as Rule 12b-1 and/or service fees, trustees and trustee counsel fees, extraordinary expenses, taxes, brokerage, interest and organizational and offering expenses).
Distribution Service Agreement. Under the Distribution Service Agreement, in accordance with Rule 12b-1 under the 1940 Act, Scudder Distributors, Inc. ("SDI"), a subsidiary of the Advisor, receives a fee ("Distribution Fee") of 0.75% of average daily net assets of Class B and C shares. Pursuant to the agreement, SDI enters into related selling group agreements with various firms at various rates for sales of Class B and C shares. For the six months ended March 31, 2004, the Distribution Fee was as follows:
|
Distribution Fee |
Total Aggregated |
Unpaid at March 31, 2004 |
|
Class B |
$ 9,265 | $ 1,716 |
|
Class C |
4,987 | 959 |
|
|
$ 14,252 |
$ 2,675 |
In addition, SDI provides information and administrative services ("Service Fee") to Class A, B and C shareholders at an annual rate of up to 0.25% of average daily net assets for each such class. SDI in turn has various agreements with financial services firms that provide these services and pays these fees based upon the assets of shareholder accounts the firms service. For the six months ended March 31, 2004, the Service Fee was as follows:
|
Service Fee |
Total Aggregated |
Unpaid at March 31, 2004 |
Effective Rate |
|
Class A |
$ 7,672 | $ 33 |
.20% |
|
Class B |
2,786 | 64 |
.23% |
|
Class C |
1,504 | 85 |
.23% |
|
|
$ 11,962 |
$ 182 |
|
Underwriting Agreement and Contingent Deferred Sales Charge. SDI is the principal underwriter for Class A, B and C shares. Underwriting commissions paid in connection with the distribution of Class A shares for the six months ended March 31, 2004 were $2,500.
In addition, SDI receives any contingent deferred sales charge ("CDSC") from Class B share redemptions occurring within six years of purchase and Class C share redemptions occurring within one year of purchase. There is no such charge upon redemption of any share appreciation or reinvested dividends. The CDSC is based on declining rates ranging from 4% to 1% for Class B and 1% for Class C, of the value of the shares redeemed. For the six months ended March 31, 2004, the CDSC for Class B and C shares aggregated $2,834 and $679, respectively.
Trustees' Fees and Expenses. The Fund pays each Trustee not affiliated with the Advisor retainer fees plus specified amounts for attended board and committee meetings.
Scudder Cash Management QP Trust. Pursuant to an Exemptive Order issued by the SEC, the Fund may invest in the Scudder Cash Management QP Trust (the "QP Trust"), and other affiliated funds managed by the Advisor. The QP Trust seeks to provide as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity. The QP Trust does not pay the Advisor a management fee for the affiliated funds' investments in the QP Trust.
Other Related Parties. AARP through its affiliates, AARP Services, Inc., monitors and oversees the AARP Investment Program from Scudder Investments, but does not act as an investment advisor or recommend specific mutual funds. DeIM has agreed to pay a fee to AARP and/or its affiliates in return for the use of the AARP trademark and services relating to investments by AARP members in AARP Class shares of the Fund. This fee is calculated on a daily basis as a percentage of the combined net assets of the AARP classes of all funds managed by DeIM. The fee rates, which decrease as the aggregate net assets of the AARP classes become larger, are as follows: 0.07% of the first $6 billion of net assets, 0.06% of the next $10 billion of such net assets and 0.05% of such net assets thereafter. These amounts are used for the general purposes of AARP and its members.
D. Expense Off-Set Arrangement
The Fund has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund's custodian expenses. During the six months ended March 31, 2004 pursuant to the Administrative Agreement, no custodian credits were earned.
E. Line of Credit
The Fund and several other affiliated funds (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 percent. The Fund may borrow up to a maximum of 33 percent of its net assets under the agreement.
F. Share Transactions
The following table summarizes share and dollar activity in the Fund:
|
|
Six Months Ended |
Year Ended |
||
|
|
Shares |
Dollars |
Shares |
Dollars |
|
Shares sold
|
||||
|
Class A |
358,004 | $ 8,899,671 | 162,865 | $ 3,080,060 |
|
Class B |
40,397 | 965,567 | 83,403 | 1,522,469 |
|
Class C |
32,875 | 786,518 | 40,771 | 757,973 |
|
Class AARP |
502,548 | 12,390,386 | 470,545 | 9,188,149 |
|
Class S |
638,786 | 15,722,164 | 611,109 | 11,444,286 |
|
|
|
$ 38,764,306 |
|
$ 25,992,937 |
|
Shares issued to shareholders in reinvestment of distributions
|
||||
|
Class A |
8,203 | $ 195,311 | - | $ - |
|
Class B |
2,609 | 60,805 | - | - |
|
Class C |
1,605 | 37,431 | - | - |
|
Class AARP |
66,485 | 1,594,330 | - | - |
|
Class S |
70,943 | 1,700,546 | - | - |
|
|
|
$ 3,588,423 |
|
$ - |
|
Shares redeemed
|
||||
|
Class A |
(88,592) | $ (2,167,734) | (26,933) | $ (482,686) |
|
Class B |
(24,361) | (580,278) | (44,628) | (788,586) |
|
Class C |
(16,973) | (410,850) | (5,825) | (106,572) |
|
Class AARP |
(320,317) | (7,897,116) | (483,676) | (8,726,706) |
|
Class S |
(360,353) | (8,846,173) | (770,026) | (13,617,611) |
|
|
|
$ (19,902,151) |
|
$ (23,722,161) |
|
Net increase (decrease)
|
||||
|
Class A |
277,615 | $ 6,927,248 | 135,932 | $ 2,597,374 |
|
Class B |
18,645 | 446,094 | 38,775 | 733,883 |
|
Class C |
17,507 | 413,099 | 34,946 | 651,401 |
|
Class AARP |
248,716 | 6,087,600 | (13,131) | 461,443 |
|
Class S |
349,376 | 8,576,537 | (158,917) | (2,173,325) |
|
|
|
$ 22,450,578 |
|
$ 2,270,776 |
G. 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 funds or their advisers. Publicity about mutual fund practices arising from these industry wide inquiries serve 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/Directors, 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.
|
|
For shareholders of Classes A, B and C
|
Automated Information Lines |
ScudderACCESS (800) 972-3060 Personalized account information, information on other Scudder funds and services via touchtone telephone and for Classes A, B, and C only, the ability to exchange or redeem shares. |
|
Web Site |
scudder.com View your account transactions and balances, trade shares, monitor your asset allocation, and change your address, 24 hours a day.Obtain prospectuses and applications, blank forms, interactive worksheets, news about Scudder funds, subscription to fund updates by e-mail, retirement planning information, and more. |
|
For More Information |
(800) 621-1048 To speak with a Scudder service representative. |
|
Written Correspondence |
Scudder Investments PO Box 219356Kansas City, MO 64121-9356 |
|
Proxy Voting |
A description of the fund's policies and procedures for voting
proxies for portfolio securities can be found 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 without
charge, call us toll free at (800) 621-1048. |
|
Principal Underwriter |
If you have questions, comments or complaints, contact: Scudder Distributors, Inc. 222 South Riverside PlazaChicago, IL 60606-5808 (800) 621-1148 |
|
|
Class A |
Class B |
Class C |
|
Nasdaq Symbol |
SZCAX |
SZCBX |
SZCCX |
|
CUSIP Number |
460965-585 |
460965-577 |
460965-569 |
|
Fund Number |
439 |
639 |
739 |
|
|
AARP Investment Program Shareholders |
Scudder Class S Shareholders |
|
Automated Information Lines |
Easy-Access Line (800) 631-4636 |
SAIL™ (800) 343-2890 |
|
|
Personalized account information, the ability to exchange or
redeem shares, and information on other Scudder funds and
services via touchtone telephone. |
|
|
Web Sites |
aarp.scudder.com |
myScudder.com |
|
|
View your account transactions and balances, trade shares, monitor
your asset allocation, and change your address, 24 hours a day. Obtain prospectuses and applications, blank forms, interactive worksheets, news about Scudder funds, subscription to fund updates by e-mail, retirement planning information, and more. |
|
|
For More Information |
(800) 253-2277 To speak with an AARP Investment Program service representative |
(800) SCUDDER To speak with a Scudder service representative. |
|
Written Correspondence |
AARP Investment Program from Scudder Investments PO Box 219735Kansas City, MO 64121-9735 |
Scudder Investments PO Box 219669Kansas City, MO 64121-9669 |
|
Proxy Voting |
A description of the fund's policies and procedures for voting
proxies for portfolio securities can be found on our Web sites -
aarp.scudder.com or myScudder.com (type "proxy voting" in the
search field) - or on the SEC's Web site - www.sec.gov. To obtain
a written copy without charge, call your service representative. |
|
|
Principal Underwriter |
If you have questions, comments or complaints, contact: Scudder Distributors, Inc. 222 South Riverside PlazaChicago, IL 60606-5808 (800) 621-1148 |
|
|
|
Class AARP |
Class S |
|
Nasdaq Symbol |
ASCSX |
SSLCX |
|
Fund Number |
139 |
339 |
|
|
This privacy statement is issued by Deutsche Investment Management Americas Inc., Deutsche Asset Management, Inc., Scudder Distributors, Inc., Scudder Investor Services, Inc., Scudder Trust Company and the Scudder Funds.
We never sell customer lists or individual client information. We consider privacy fundamental to our client relationships and adhere to the policies and practices described below to protect current and former clients' information. Internal policies are in place to protect confidentiality, while allowing client needs to be served. Only individuals who need to do so in carrying out their job responsibilities may access client information. We maintain physical, electronic and procedural safeguards that comply with federal standards to protect confidentiality. These safeguards extend to all forms of interaction with us, including the Internet.
In the normal course of business, clients give us nonpublic personal information on applications and other forms, on our websites, and through transactions with us or our affiliates. Examples of the nonpublic personal information collected are name, address, Social Security number and transaction and balance information. To be able to serve our clients, certain of this client information is shared with affiliated and nonaffiliated third party service providers such as transfer agents, custodians, and broker-dealers to assist us in processing transactions and servicing your account with us. In addition, we may disclose all of the information we collect to companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements. The organizations described above that receive client information may only use it for the purpose designated by the Scudder Companies listed above.
We may also disclose nonpublic personal information about you to other parties as required or permitted by law. For example, we are required or we may provide information to government entities or regulatory bodies in response to requests for information or subpoenas, to private litigants in certain circumstances, to law enforcement authorities, or any time we believe it necessary to protect the firm.
For AARP shareholders only: Certain investors in the AARP Investment Program are advised that limited nonpublic personal information is shared with AARP and its subsidiary AARP Services Inc. (ASI). This includes an investor's status as a current or former Program participant, name, address, and type of account maintained (i.e. IRA or non-IRA). This information must be shared so that ASI can provide quality control services, such as monitoring satisfaction with the Program. However, AARP and ASI may also use this information for other purposes such as member research, and may share this information with other AARP providers to inform members of AARP benefits and services. Shareholders residing in states with certain state specific privacy restrictions are excluded from this information sharing. All other shareholders may instruct us in writing not to share information regarding themselves or joint account holders with AARP or ASI for any purposes unrelated to the AARP Investment Program. Investors may do so by filling out and returning the enclosed "opt-out" form. With respect to accounts that are jointly held, an opt-out form received from any of the joint account holders will be applied to the entire account.
Questions on this policy may be sent to:
For Class AARP:
AARP Investment Program, Attention: Correspondence,
P.O. Box 219735, Kansas City, MO 64121-9735
For Class S:
Scudder Investments, Attention: Correspondence,
P.O. Box 219669, Kansas City, MO 64121-9669
For all other classes:
Scudder Investments, Attention: Correspondence - Chicago
P.O. Box 219415, Kansas City, MO 64121-9415
August 2003
|
Notes |
|
|
|
Notes |
|
|
|
Notes |
|
|
|
Notes |
|
|
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. [RESERVED]
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Committee on Independent Trustees/Directors selects and nominates
Independent Trustees/Directors. 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 Trust, Two
International Place, Boston, MA 02110.
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.
Fund management has previously identified a significant deficiency relating to
the overall fund expense payment and accrual process. This matter relates
primarily to a bill payment processing issue. There was no material impact to
shareholders, fund net asset value, fund performance or the accuracy of any
fund's financial statements. Fund management discussed this matter with the
Registrant's Audit Committee and auditors, instituted additional procedures to
enhance its internal controls and will continue to develop additional controls
and redesign work flow to strengthen the overall control environment associated
with the processing and recording of fund expenses.
(b) There have been no changes in the registrant's internal control over
financial reporting that occurred during the filing period that has materially
affected, or is reasonably likely to materially affect, the registrant's
internal controls over financial reporting.
ITEM 11. EXHIBITS.
(a)(1) Certification pursuant to Rule 30a-2(a) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as
Exhibit 99.CERT.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as
Exhibit 99.906CERT.
Form N-CSR Item F
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 Small Company Stock Fund
By: /s/Richard T. Hale
---------------------------
Richard T. Hale
Chief Executive Officer
Date: May 28, 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 Small Company Stock Fund
By: /s/Richard T. Hale
---------------------------
Richard T. Hale
Chief Executive Officer
Date: May 28, 2004
---------------------------
By: /s/Charles A. Rizzo
---------------------------
Charles A. Rizzo
Chief Financial Officer
Date: May 28, 2004
---------------------------