UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number 811-07507
SCUDDER INVESTMENTS VIT FUNDS
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(Exact Name of Registrant as Specified in Charter)
One South Street, Baltimore, Maryland 21202
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(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (212) 454-7190
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Paul Schubert
345 Park Avenue
New York, NY 10154
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(Name and Address of Agent for Service)
Date of fiscal year end: 12/31
Date of reporting period: 06/30/2005
ITEM 1. REPORT TO STOCKHOLDERS
Scudder Investments VIT FundsSemiannual Report | ||
| June 30, 2005 | |
| ||
| Scudder VIT Equity 500 Index Fund | |
Contents | |
|
Click Here Performance Summary
Click Here Information About Your Fund's Expenses
Click Here Management Summary
Click Here Portfolio Summary
Click Here Investment Portfolio
Click Here Financial Statements
Click Here Financial Highlights
Click Here Notes to Financial Statements
Click Here Proxy Voting
This report must be preceded or accompanied by a prospectus. We advise you to consider the fund's objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the fund. Please read the prospectus carefully before you invest.
The fund is not insured by the FDIC and is not a deposit, obligation of or guaranteed by Deutsche Bank AG. The fund is subject to investment risks, including possible loss of principal amount invested. There is no guarantee that the fund will be able to mirror the S&P 500 Index closely enough to track its performance. Please read both the contract and underlying prospectus for specific details regarding the product's investments and risk profile.
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Performance Summary as of June 30, 2005 |
|
All performance shown is historical, assumes reinvestment of all dividend and capital gain distributions, and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions so that, when sold, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the Fund's most recent performance call 1-800-621-1048. Performance figures for Classes A and B differ because each class maintains a distinct expense structure. Performance doesn't reflect charges and fees ("contract charges") associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. These charges and fees will reduce returns.
Growth of an Assumed $10,000 Investment in Scudder VIT Equity 500 Index Fund from 10/1/1997 to 6/30/2005 | ||
[] Scudder VIT Equity 500 Index Fund — Class A [] S&P 500 Index | ||
 |
| The Standard & Poor's (S&P) 500 Index is an unmanaged capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. "Standard & Poor's," "S&P 500," "Standard & Poor's 500" and "500" are trademarks of The McGraw-Hill Companies Inc., and have been licensed for use by the Fund's investment advisor. 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. |
Yearly periods ended June 30 |
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|
Comparative Results (as of June 30, 2005) | ||||||
Scudder VIT Equity 500 Index Fund |
| 6-Month* | 1-Year | 3-Year | 5-Year | Life of Class* |
Class A | Growth of $10,000 | $9,909 | $10,609 | $12,591 | $8,736 | $13,730 |
Total return | -.91 | 6.09% | 7.98% | -2.67% | 4.18% | |
S&P 500 Index | Growth of $10,000 | $9,919 | $10,632 | $12,696 | $8,868 | $14,138 |
Total return | -.81% | 6.32% | 8.28% | -2.37% | 4.57% | |
Scudder VIT Equity 500 Index Fund |
|
| 6-Month* | 1-Year | 3-Year | Life of Class** |
Class B | Growth of $10,000 |
| $9,892 | $10,573 | $12,498 | $11,500 |
Total return |
| -1.08% | 5.73% | 7.71% | 4.51% | |
S&P 500 Index | Growth of $10,000 |
| $9,919 | $10,632 | $12,696 | $11,705 |
Total return |
| -.81% | 6.32% | 8.28% | 5.10% | |
The growth of $10,000 is cumulative.
* Total returns shown for periods less than one year are not annualized.
* The Fund commenced operations on October 1, 1997. Index returns begin September 30, 1997.
** The Fund commenced offering Class B shares on April 30, 2002. Index returns begin April 30, 2002.
Information concerning portfolio holdings of the Fund as of a month end is available upon request no earlier than 15 days after the month end. Please call 1-800-621-1048.
|
As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service (12b-1) fees and other Fund expenses. Examples of transaction costs include sales charges (loads), redemption fees and account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. The tables are based on an investment of $1,000 made at the beginning of the six-month period ended June 30, 2005.
The tables illustrate your Fund's expenses in two ways:
Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund's actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the "Expenses Paid per $1,000" line under the share class you hold.
Hypothetical 5% Fund Return. This helps you to compare your Fund's ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund's actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical Fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The "Expenses Paid per $1,000" line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. If these transaction costs had been included, your costs would have been higher.
* Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by 365.
Annualized Expense Ratios | Class A | Class B |
Scudder VIT Equity 500 Index Fund | .27% | .52% |
For more information, please refer to the Fund's prospectus.
These tables do not reflect charges and fees ("contract charges") associated with the separate account that invests in the portfolio or any variable life insurance policy or variable annuity contract for which the portfolio is an investment option.
Management Summary June 30, 2005 |
|
In the early months of 2005, the market rally that occurred at the end of 2004 ended as economic trends appeared less encouraging. Concern mounted about whether rising energy prices would spark more-generalized inflation, with its negative effects on consumer spending and business investment. These factors generated considerable uncertainty about future trends in economic growth and corporate earnings, pushing the market lower in March and April.
The market rallied again in May, responding to record corporate profits, improving consumer sentiment and an upward revision in reported economic growth for the first quarter of 2005. In June, the market was volatile, with no real direction, as positive trends in consumer confidence and employment were offset by negative trends in capital goods orders and rising prices of oil and other key commodities. At the end of June, the S&P 500 Index was quite close to its level at the beginning of the year; the total return of the index for the six-month period had dipped -0.81%.
For the six-month period ended June 30, 2005, the fund returned -0.91% (Class A shares, unadjusted for contract charges). Since the fund's investment strategy is to replicate, as closely as possible, before the deduction of expenses, the performance of the S&P 500 Index, the fund's return is normally close to the return of the index.
For the six months ended June 30, 2005, six of the 10 industry sectors within the S&P 500 had negative returns, and four sectors had positive returns. Driven by rising oil prices, energy was the strongest sector by far, with a return of 19.89%, followed by utilities, which had a return of 15.24%. Health care had a return of 3.51%, and consumer staples was slightly positive, with a return of 0.03%. The weakest sector was materials, with a return of -7.49%. Other negative sectors were consumer discretionary (-6.54%), information technology (-5.74%), industrials (-4.83%), telecommunications (-4.49%) and financials (-2.33%). In terms of noteworthy industry news, US automakers drew unwelcome attention and came under pressure after rating agencies downgraded Ford Motor Co. and General Motors Corp., in some cases to below investment grade. The two auto manufacturers have been suffering from declining market share and high pension costs.
The best semiannual total return among the S&P 500 Index stocks came from EOG Resources Inc., one of the largest independent oil and natural gas companies in the United States. The worst-performing individual stock based on total return was JDS Uniphase Corp., a maker of fiber optics components for the communications industry. Over the six-month period, six companies were deleted from the index and six were added. Among these dozen companies, Adolph Coors Company was deleted, replaced by Molson Coors Brewing Co., as Coors and Molson merged. Sears, Roebuck & Co. was replaced by Sears Holdings Corp., following the merger between Sears and Kmart Holding Corp.
For many investors, we believe that holding an index fund such as this one is advantageous because it offers broad exposure to the equity market at a relatively low cost.
James B. Francis
Portfolio Manager
Northern Trust Investments, N.A. (NTI), Subadvisor to the Fund
All performance shown is historical, assumes reinvestment of all dividend and capital gain distributions, and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions so that, when sold, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the fund's most recent performance call 1-800-621-1048. Performance figures for Classes A and B differ because each class maintains a distinct expense structure. Performance doesn't reflect charges and fees ("contract charges") associated with the separate account that invests in the fund or any variable life insurance policy or variable annuity contract for which the fund is an investment option. These charges and fees will reduce returns.
Risk Considerations
The fund is not insured by the FDIC and is not a deposit, obligation of or guaranteed by Deutsche Bank AG. The fund is subject to investment risks, including possible loss of principal amount invested. There is no guarantee that the fund will be able to mirror the S&P 500 Index closely enough to track its performance. Please read both the contract and underlying prospectus for specific details regarding the product's investments and risk profile.
The Standard & Poor's 500 (S&P 500) Index is an unmanaged, capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. It is not possible to invest directly into an index.
Portfolio management market commentary is as of June 30, 2005, and may not come to pass. This information is subject to change at any time based on market and other conditions and should not be construed as a recommendation.
Portfolio Summary |
Asset Allocation (Excludes Securities Lending Collateral) | 6/30/05 |
| |
Common Stocks | 99% |
Cash Equivalents | 1% |
| 100% |
Sector Diversification (As a % of Common Stocks) | 6/30/05 |
| |
Financials | 20% |
Information Technology | 15% |
Health Care | 13% |
Consumer Discretionary | 12% |
Industrials | 11% |
Consumer Staples | 10% |
Energy | 9% |
Utilities | 4% |
Telecommunication Services | 3% |
Materials | 3% |
| 100% |
Ten Largest Equity Holdings (20.8% of Net Assets) | |
1. General Electric Co. Industrial conglomerate | 3.3% |
2. ExxonMobil Corp. Explorer and producer of oil and gas | 3.3% |
3. Microsoft Corp. Developer of computer software | 2.3% |
4. Citigroup, Inc. Provider of diversified financial services | 2.2% |
5. Pfizer, Inc. Manufacturer of prescription pharmaceuticals and non-prescription self medications | 1.9% |
6. Johnson & Johnson Provider of health care products | 1.7% |
7. Bank of America Corp. Provider of commercial banking services | 1.7% |
8. Wal-Mart Stores, Inc. Operator of discount stores | 1.5% |
9. Intel Corp. Designer, manufacturer and seller of computer components and related products | 1.5% |
10. American International Group, Inc. Provider of insurance services | 1.4% |
Asset allocation, sector diversification, and portfolio holdings are subject to change.
For more complete details about the Fund's investment portfolio, see page 8. A quarterly fact sheet is available upon request. Information concerning portfolio holdings of the Fund as of month end will be posted to scudder.com on the 15th of the following month.
Following the Fund's fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC on Form N-Q. The form will be available on the SEC's Web site at www.sec.gov, and it also may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling (800) SEC-0330.
Investment Portfolio as of June 30, 2005 (Unaudited) |  |
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|
| Value ($) |
|
| |
Common Stocks 99.3% | ||
Consumer Discretionary 11.4% | ||
Auto Components 0.2% | ||
Cooper Tire & Rubber Co. | 7,200 | 133,704 |
Dana Corp. | 10,685 | 160,382 |
Delphi Corp. | 42,273 | 196,569 |
Goodyear Tire & Rubber Co.* (e) | 15,900 | 236,910 |
Johnson Controls, Inc. | 14,000 | 788,620 |
Visteon Corp. | 12,836 | 77,401 |
| 1,593,586 | |
Automobiles 0.5% | ||
Ford Motor Co. | 147,302 | 1,508,373 |
General Motors Corp. (e) | 43,530 | 1,480,020 |
Harley-Davidson, Inc. | 24,000 | 1,190,400 |
| 4,178,793 | |
Distributors 0.1% | ||
Genuine Parts Co. | 12,000 | 493,080 |
Diversified Consumer Services 0.2% | ||
Apollo Group, Inc. "A"* | 13,763 | 1,076,542 |
H&R Block, Inc. | 14,200 | 828,570 |
| 1,905,112 | |
Hotels Restaurants & Leisure 1.5% | ||
Carnival Corp. | 42,400 | 2,312,920 |
Darden Restaurants, Inc. | 11,050 | 364,429 |
Harrah's Entertainment, Inc. | 14,400 | 1,037,808 |
Hilton Hotels Corp. | 28,100 | 670,185 |
International Game Technology | 25,968 | 730,999 |
Marriott International, Inc. "A" | 16,900 | 1,152,918 |
McDonald's Corp. | 101,800 | 2,824,950 |
Starbucks Corp.* | 32,600 | 1,684,116 |
Starwood Hotels & Resorts Worldwide, Inc. | 16,832 | 985,850 |
Wendy's International, Inc. | 10,200 | 486,030 |
YUM! Brands, Inc. | 21,900 | 1,140,552 |
| 13,390,757 | |
Household Durables 0.6% | ||
Black & Decker Corp. | 5,700 | 512,145 |
Centex Corp. | 9,400 | 664,298 |
Fortune Brands, Inc. | 12,100 | 1,074,480 |
KB Home | 7,200 | 548,856 |
Leggett & Platt, Inc. | 12,700 | 337,566 |
Maytag Corp. | 8,100 | 126,846 |
Newell Rubbermaid, Inc. | 19,024 | 453,532 |
Pulte Homes, Inc. | 8,800 | 741,400 |
Snap-on, Inc. | 3,400 | 116,620 |
The Stanley Works | 7,100 | 323,334 |
Whirlpool Corp. | 5,800 | 406,638 |
| 5,305,715 | |
Internet & Catalog Retail 0.4% | ||
eBay, Inc.* | 95,162 | 3,141,298 |
Leisure Equipment & Products 0.2% | ||
Brunswick Corp. | 7,000 | 303,240 |
Eastman Kodak Co. | 24,200 | 649,770 |
Hasbro, Inc. | 12,859 | 267,339 |
Mattel, Inc. | 30,200 | 552,660 |
| 1,773,009 | |
|
| Value ($) |
|
| |
Media 3.6% | ||
Clear Channel Communications, Inc. | 43,634 | 1,349,600 |
Comcast Corp. "A"* | 177,386 | 5,445,750 |
Dow Jones & Co., Inc. | 6,700 | 237,515 |
Gannett Co., Inc. | 19,600 | 1,394,148 |
Interpublic Group of Companies, Inc.* | 34,400 | 418,992 |
Knight-Ridder, Inc. | 6,400 | 392,576 |
McGraw-Hill Companies, Inc. | 32,100 | 1,420,425 |
Meredith Corp. | 2,900 | 142,274 |
New York Times Co. "A" | 9,500 | 295,925 |
News Corp. "A" | 231,700 | 3,748,906 |
Omnicom Group, Inc. | 15,400 | 1,229,844 |
Time Warner, Inc.* | 360,848 | 6,029,770 |
Tribune Co. | 24,425 | 859,272 |
Univision Communications, Inc. "A"* | 21,800 | 600,590 |
Viacom, Inc. "B" | 126,025 | 4,035,320 |
Walt Disney Co. | 164,600 | 4,144,628 |
| 31,745,535 | |
Multiline Retail 1.3% | ||
Big Lots, Inc.* | 6,800 | 90,032 |
Dillard's, Inc. "A" | 6,500 | 152,230 |
Dollar General Corp. | 24,847 | 505,885 |
Family Dollar Stores, Inc. | 12,726 | 332,148 |
Federated Department Stores, Inc. | 13,900 | 1,018,592 |
J.C. Penney Co., Inc. | 20,600 | 1,083,148 |
Kohl's Corp.* | 24,900 | 1,392,159 |
May Department Stores Co. | 22,750 | 913,640 |
Nordstrom, Inc. | 10,700 | 727,279 |
Sears Holdings Corp.* | 7,341 | 1,100,196 |
Target Corp. | 72,000 | 3,917,520 |
| 11,232,829 | |
Specialty Retail 2.4% | ||
AutoNation, Inc.* | 18,200 | 373,464 |
AutoZone, Inc.* | 5,500 | 508,530 |
Bed Bath & Beyond, Inc.* | 25,100 | 1,048,678 |
Best Buy Co., Inc. | 22,950 | 1,573,222 |
Circuit City Stores, Inc. | 15,500 | 267,995 |
Home Depot, Inc. | 172,600 | 6,714,140 |
Limited Brands, Inc. | 32,476 | 695,636 |
Lowe's Companies, Inc. (e) | 61,100 | 3,557,242 |
Office Depot, Inc.* | 23,400 | 534,456 |
OfficeMax, Inc. | 7,000 | 208,390 |
RadioShack Corp. | 12,900 | 298,893 |
Staples, Inc. | 61,075 | 1,302,119 |
The Gap, Inc. | 60,825 | 1,201,294 |
The Sherwin-Williams Co. | 9,400 | 442,646 |
Tiffany & Co. | 10,300 | 337,428 |
TJX Companies, Inc. | 38,200 | 930,170 |
Toys "R" Us, Inc.* | 17,200 | 455,456 |
| 20,449,759 | |
Textiles, Apparel & Luxury Goods 0.4% | ||
Coach, Inc.* | 28,900 | 970,173 |
Jones Apparel Group, Inc. | 8,197 | 254,435 |
Liz Claiborne, Inc. | 7,400 | 294,224 |
NIKE, Inc. "B" | 19,000 | 1,645,400 |
Reebok International Ltd. | 5,300 | 221,699 |
|
| Value ($) |
|
| |
VF Corp. | 7,900 | 452,038 |
| 3,837,969 | |
Consumer Staples 10.1% | ||
Beverages 2.2% | ||
Anheuser-Busch Companies, Inc. | 60,300 | 2,758,725 |
Brown-Forman Corp. "B" | 7,400 | 447,404 |
Coca-Cola Co. | 178,400 | 7,448,200 |
Coca-Cola Enterprises, Inc. | 28,800 | 633,888 |
Molson Coors Brewing Co. "B" | 6,000 | 372,000 |
Pepsi Bottling Group, Inc. | 16,592 | 474,697 |
PepsiCo, Inc. | 134,560 | 7,256,821 |
| 19,391,735 | |
Food & Staples Retailing 2.8% | ||
Albertsons, Inc. | 31,942 | 660,561 |
Costco Wholesale Corp. | 38,600 | 1,730,052 |
CVS Corp. | 65,400 | 1,901,178 |
Kroger Co.* | 54,700 | 1,040,941 |
Safeway, Inc.* | 33,800 | 763,542 |
SUPERVALU, Inc. | 9,100 | 296,751 |
Sysco Corp. | 48,800 | 1,766,072 |
Wal-Mart Stores, Inc. | 266,800 | 12,859,760 |
Walgreen Co. | 81,500 | 3,748,185 |
| 24,767,042 | |
Food Products 1.2% | ||
Archer-Daniels-Midland Co. | 51,175 | 1,094,121 |
Campbell Soup Co. | 26,800 | 824,636 |
ConAgra Foods, Inc. | 38,300 | 887,028 |
General Mills, Inc. | 30,664 | 1,434,769 |
H.J. Heinz Co. | 26,200 | 928,004 |
Kellogg Co. | 29,800 | 1,324,312 |
McCormick & Co, Inc. | 8,700 | 284,316 |
Sara Lee Corp. | 62,600 | 1,240,106 |
The Hershey Co. | 16,200 | 1,006,020 |
William Wrigley Jr. Co. | 15,700 | 1,080,788 |
| 10,104,100 | |
Household Products 1.8% | ||
Clorox Co. | 13,500 | 752,220 |
Colgate-Palmolive Co. | 43,100 | 2,151,121 |
Kimberly-Clark Corp. | 39,500 | 2,472,305 |
Procter & Gamble Co. | 198,327 | 10,461,749 |
| 15,837,395 | |
Personal Products 0.7% | ||
Alberto-Culver Co. "B" | 5,800 | 251,314 |
Avon Products, Inc. | 35,900 | 1,358,815 |
Gillette Co. | 79,900 | 4,045,337 |
| 5,655,466 | |
Tobacco 1.4% | ||
Altria Group, Inc. | 162,800 | 10,526,648 |
Reynolds American, Inc. | 8,800 | 693,440 |
UST, Inc. | 13,500 | 616,410 |
| 11,836,498 | |
Energy 8.7% | ||
Energy Equipment & Services 1.3% | ||
Baker Hughes, Inc. | 28,640 | 1,465,223 |
BJ Services Co. | 13,500 | 708,480 |
Halliburton Co. | 38,700 | 1,850,634 |
Nabors Industries Ltd.* | 10,094 | 611,898 |
National-Oilwell Varco, Inc.* | 12,600 | 599,004 |
Noble Corp. | 11,900 | 731,969 |
|
| Value ($) |
|
| |
Rowan Companies, Inc. | 10,100 | 300,071 |
Schlumberger Ltd. | 45,500 | 3,455,270 |
Transocean, Inc.* | 24,420 | 1,317,947 |
| 11,040,496 | |
Oil, Gas & Consumable Fuels 7.4% | ||
Amerada Hess Corp. | 6,300 | 671,013 |
Anadarko Petroleum Corp. | 17,821 | 1,463,995 |
Apache Corp. | 26,912 | 1,738,515 |
Burlington Resources, Inc. | 31,900 | 1,762,156 |
ChevronTexaco Corp. | 165,566 | 9,258,451 |
ConocoPhillips | 111,688 | 6,420,943 |
Devon Energy Corp. | 39,300 | 1,991,724 |
El Paso Corp. | 47,586 | 548,191 |
EOG Resources, Inc. | 17,900 | 1,016,720 |
ExxonMobil Corp. | 504,417 | 28,988,845 |
Kerr-McGee Corp. | 8,420 | 642,530 |
Kinder Morgan, Inc. | 9,600 | 798,720 |
Marathon Oil Corp. | 28,700 | 1,531,719 |
Occidental Petroleum Corp. | 32,500 | 2,500,225 |
Sunoco, Inc. | 6,000 | 682,080 |
Unocal Corp. | 21,300 | 1,385,565 |
Valero Energy Corp. | 19,800 | 1,566,378 |
Williams Companies, Inc. | 47,023 | 893,437 |
XTO Energy, Inc. | 26,100 | 887,139 |
| 64,748,346 | |
Financials 20.2% | ||
Banks 6.4% | ||
AmSouth Bancorp. | 24,900 | 647,400 |
Bank of America Corp. | 319,410 | 14,568,290 |
BB&T Corp. | 41,300 | 1,650,761 |
Comerica, Inc. | 15,100 | 872,780 |
Compass Bancshares, Inc. | 7,900 | 355,500 |
Fifth Third Bancorp | 43,342 | 1,786,124 |
First Horizon National Corp. | 11,100 | 468,420 |
Golden West Financial Corp. | 22,000 | 1,416,360 |
Huntington Bancshares, Inc. | 15,650 | 377,791 |
KeyCorp. | 32,800 | 1,087,320 |
M&T Bank Corp. | 8,300 | 872,828 |
Marshall & Ilsley Corp. | 14,800 | 657,860 |
National City Corp. | 49,700 | 1,695,764 |
North Fork Bancorp., Inc. | 34,450 | 967,700 |
PNC Financial Services Group | 24,000 | 1,307,040 |
Regions Financial Corp. | 34,226 | 1,159,577 |
Sovereign Bancorp, Inc. | 26,651 | 595,383 |
SunTrust Banks, Inc. | 28,100 | 2,029,944 |
Synovus Financial Corp. | 21,850 | 626,440 |
US Bancorp. (e) | 149,770 | 4,373,284 |
Wachovia Corp. | 127,321 | 6,315,122 |
Washington Mutual, Inc. | 71,248 | 2,899,081 |
Wells Fargo & Co. | 134,800 | 8,300,984 |
Zions Bancorp. | 8,400 | 617,652 |
| 55,649,405 | |
Capital Markets 2.7% | ||
Bank of New York Co., Inc. | 64,800 | 1,864,944 |
Bear Stearns Companies, Inc. | 9,572 | 994,914 |
Charles Schwab Corp. | 88,600 | 999,408 |
E*TRADE Financial Corp.* | 32,300 | 451,877 |
Federated Investors, Inc. "B" | 6,400 | 192,064 |
Franklin Resources, Inc. | 16,700 | 1,285,566 |
Janus Capital Group, Inc. | 16,300 | 245,152 |
Lehman Brothers Holdings, Inc. | 21,222 | 2,106,920 |
Mellon Financial Corp. | 36,700 | 1,052,923 |
|
| Value ($) |
|
| |
Merrill Lynch & Co., Inc. | 73,600 | 4,048,736 |
Morgan Stanley | 87,000 | 4,564,890 |
Northern Trust Corp. | 14,300 | 651,937 |
State Street Corp. | 25,000 | 1,206,250 |
T. Rowe Price Group, Inc. | 11,000 | 688,600 |
The Goldman Sachs Group, Inc. | 34,800 | 3,550,296 |
| 23,904,477 | |
Consumer Finance 1.3% | ||
American Express Co. | 94,300 | 5,019,589 |
Capital One Financial Corp. | 18,900 | 1,512,189 |
MBNA Corp. | 103,140 | 2,698,142 |
Providian Financial Corp.* | 25,200 | 444,276 |
SLM Corp. | 35,200 | 1,788,160 |
| 11,462,356 | |
Diversified Financial Services 4.8% | ||
CIT Group, Inc. | 17,300 | 743,381 |
Citigroup, Inc. | 412,274 | 19,059,427 |
Countrywide Financial Corp. | 44,698 | 1,725,790 |
Fannie Mae | 75,800 | 4,426,720 |
Freddie Mac | 55,400 | 3,613,742 |
JPMorgan Chase & Co. | 279,244 | 9,862,898 |
MGIC Investment Corp. | 6,900 | 450,018 |
Moody's Corp. | 21,800 | 980,128 |
Principal Financial Group, Inc. | 21,800 | 913,420 |
| 41,775,524 | |
Insurance 4.4% | ||
ACE Ltd. | 21,100 | 946,335 |
AFLAC, Inc. | 39,300 | 1,700,904 |
Allstate Corp. | 55,300 | 3,304,175 |
Ambac Financial Group, Inc. | 9,350 | 652,256 |
American International Group, Inc. | 205,389 | 11,933,101 |
Aon Corp. | 27,000 | 676,080 |
Chubb Corp. | 15,100 | 1,292,711 |
Cincinnati Financial Corp. | 11,408 | 451,300 |
Hartford Financial Services Group, Inc. | 24,351 | 1,820,968 |
Jefferson-Pilot Corp. | 9,300 | 468,906 |
Lincoln National Corp. | 15,700 | 736,644 |
Loews Corp. | 12,800 | 992,000 |
Marsh & McLennan Companies, Inc. | 40,300 | 1,116,310 |
MBIA, Inc. | 12,200 | 723,582 |
MetLife, Inc. | 60,000 | 2,696,400 |
Progressive Corp. | 15,200 | 1,501,912 |
Prudential Financial, Inc. | 42,800 | 2,810,248 |
Safeco Corp. | 11,200 | 608,608 |
The St. Paul Travelers Companies, Inc. | 53,056 | 2,097,303 |
Torchmark Corp. | 7,500 | 391,500 |
UnumProvident Corp. | 24,649 | 451,570 |
XL Capital Ltd. "A" | 11,200 | 833,504 |
| 38,206,317 | |
Real Estate 0.6% | ||
Apartment Investment & Management Co. "A" (REIT) | 7,100 | 290,532 |
Archstone-Smith Trust (REIT) | 13,400 | 517,508 |
Equity Office Properties Trust (REIT) | 34,700 | 1,148,570 |
Equity Residential (REIT) | 24,800 | 913,136 |
Plum Creek Timber Co., Inc. (REIT) | 12,400 | 450,120 |
ProLogis (REIT) | 12,200 | 490,928 |
Simon Property Group, Inc. (REIT) | 18,800 | 1,362,812 |
| 5,173,606 | |
|
| Value ($) |
|
| |
Health Care 13.3% | ||
Biotechnology 1.3% | ||
Amgen, Inc.* | 99,908 | 6,040,438 |
Applera Corp. — Applied Biosystems Group | 13,300 | 261,611 |
Biogen Idec, Inc.* | 25,690 | 885,020 |
Chiron Corp.* | 12,200 | 425,658 |
Genzyme Corp.* | 20,400 | 1,225,836 |
Gilead Sciences, Inc.* | 33,208 | 1,460,820 |
MedImmune, Inc.* | 21,400 | 571,808 |
| 10,871,191 | |
Health Care Equipment & Supplies 2.2% | ||
Bausch & Lomb, Inc. | 4,600 | 381,800 |
Baxter International, Inc. | 50,700 | 1,880,970 |
Becton, Dickinson & Co. | 21,200 | 1,112,364 |
Biomet, Inc. | 21,425 | 742,162 |
Boston Scientific Corp.* | 61,800 | 1,668,600 |
C.R. Bard, Inc. | 7,400 | 492,174 |
Fisher Scientific International, Inc.* | 8,600 | 558,140 |
Guidant Corp. | 25,200 | 1,695,960 |
Hospira, Inc.* | 11,280 | 439,920 |
Medtronic, Inc. | 97,200 | 5,033,988 |
Millipore Corp.* | 3,100 | 175,863 |
PerkinElmer, Inc. | 8,100 | 153,090 |
St. Jude Medical, Inc.* | 27,444 | 1,196,833 |
Stryker Corp. | 30,902 | 1,469,699 |
Thermo Electron Corp.* | 10,900 | 292,883 |
Waters Corp.* | 8,700 | 323,379 |
Zimmer Holdings, Inc.* | 18,864 | 1,436,871 |
| 19,054,696 | |
Health Care Providers & Services 2.7% | ||
Aetna, Inc. | 22,700 | 1,880,014 |
AmerisourceBergen Corp. | 7,684 | 531,348 |
Cardinal Health, Inc. | 33,449 | 1,925,993 |
Caremark Rx, Inc.* | 37,200 | 1,656,144 |
CIGNA Corp. | 10,900 | 1,166,627 |
Express Scripts, Inc.* | 13,200 | 659,736 |
HCA, Inc. | 33,700 | 1,909,779 |
Health Management Associates, Inc. "A" | 17,700 | 463,386 |
Humana, Inc.* | 13,700 | 544,438 |
IMS Health, Inc. | 16,300 | 403,751 |
Laboratory Corp. of America Holdings* | 10,100 | 503,990 |
Manor Care, Inc. | 7,900 | 313,867 |
McKesson Corp. | 24,325 | 1,089,517 |
Medco Health Solutions, Inc.* | 21,766 | 1,161,434 |
Quest Diagnostics, Inc. | 14,644 | 780,086 |
Tenet Healthcare Corp.* | 34,150 | 417,996 |
UnitedHealth Group, Inc. | 100,300 | 5,229,642 |
WellPoint, Inc.* | 46,328 | 3,226,282 |
| 23,864,030 | |
Pharmaceuticals 7.1% | ||
Abbott Laboratories | 125,000 | 6,126,250 |
Allergan, Inc. | 11,000 | 937,640 |
Bristol-Myers Squibb Co. | 157,346 | 3,930,503 |
Eli Lilly & Co. | 90,700 | 5,052,897 |
Forest Laboratories, Inc.* | 27,000 | 1,048,950 |
Johnson & Johnson | 234,318 | 15,230,670 |
King Pharmaceuticals, Inc.* | 16,321 | 170,065 |
Merck & Co., Inc. (e) | 174,562 | 5,376,510 |
Mylan Laboratories, Inc. | 20,300 | 390,572 |
|
| Value ($) |
|
| |
Pfizer, Inc. | 589,343 | 16,254,080 |
Schering-Plough Corp. | 115,500 | 2,201,430 |
Watson Pharmaceuticals, Inc.* | 8,400 | 248,304 |
Wyeth | 107,200 | 4,770,400 |
| 61,738,271 | |
Industrials 11.1% | ||
Aerospace & Defense 2.2% | ||
Boeing Co. | 65,500 | 4,323,000 |
General Dynamics Corp. | 16,600 | 1,818,364 |
Goodrich Corp. | 10,000 | 409,600 |
Honeywell International, Inc. | 69,175 | 2,533,880 |
L-3 Communications Holdings, Inc. | 8,300 | 635,614 |
Lockheed Martin Corp. | 33,000 | 2,140,710 |
Northrop Grumman Corp. | 27,142 | 1,499,596 |
Raytheon Co. | 34,900 | 1,365,288 |
Rockwell Collins, Inc. | 13,100 | 624,608 |
United Technologies Corp. | 82,800 | 4,251,780 |
| 19,602,440 | |
Air Freight & Logistics 1.0% | ||
FedEx Corp. | 23,660 | 1,916,697 |
Ryder System, Inc. | 4,200 | 153,720 |
United Parcel Service, Inc. "B" | 89,872 | 6,215,547 |
| 8,285,964 | |
Airlines 0.1% | ||
Delta Air Lines, Inc.* (e) | 16,100 | 60,536 |
Southwest Airlines Co. | 56,925 | 792,965 |
| 853,501 | |
Building Products 0.2% | ||
American Standard Companies, Inc. | 14,800 | 620,416 |
Masco Corp. | 37,000 | 1,175,120 |
| 1,795,536 | |
Commercial Services & Supplies 0.7% | ||
Allied Waste Industries, Inc.* | 21,400 | 169,702 |
Avery Dennison Corp. | 7,500 | 397,200 |
Cendant Corp. | 86,193 | 1,928,138 |
Cintas Corp. | 11,200 | 432,320 |
Equifax, Inc. | 9,300 | 332,103 |
Monster Worldwide, Inc.* | 10,619 | 304,553 |
Pitney Bowes, Inc. | 16,700 | 727,285 |
R.R. Donnelley & Sons Co. | 15,000 | 517,650 |
Robert Half International, Inc. | 12,000 | 299,640 |
Waste Management, Inc. | 44,397 | 1,258,211 |
| 6,366,802 | |
Construction & Engineering 0.1% | ||
Fluor Corp. | 7,600 | 437,684 |
Electrical Equipment 0.4% | ||
American Power Conversion Corp. | 15,700 | 370,363 |
Cooper Industries Ltd. "A" | 6,500 | 415,350 |
Emerson Electric Co. | 33,400 | 2,091,842 |
Rockwell Automation, Inc. | 14,600 | 711,166 |
| 3,588,721 | |
Industrial Conglomerates 4.5% | ||
3M Co. | 60,200 | 4,352,460 |
General Electric Co. | 837,500 | 29,019,375 |
Textron, Inc. | 9,900 | 750,915 |
Tyco International Ltd. | 161,206 | 4,707,215 |
| 38,829,965 | |
|
| Value ($) |
|
| |
Machinery 1.4% | ||
Caterpillar, Inc. | 26,500 | 2,525,715 |
Cummins, Inc. | 4,000 | 298,440 |
Danaher Corp. | 23,000 | 1,203,820 |
Deere & Co. | 19,400 | 1,270,506 |
Dover Corp. | 17,900 | 651,202 |
Eaton Corp. | 11,300 | 676,870 |
Illinois Tool Works, Inc. | 22,800 | 1,816,704 |
Ingersoll-Rand Co. "A" | 12,900 | 920,415 |
ITT Industries, Inc. | 8,100 | 790,803 |
Navistar International Corp.* | 6,100 | 195,200 |
PACCAR, Inc. | 14,525 | 987,700 |
Pall Corp. | 7,700 | 233,772 |
Parker-Hannifin Corp. | 9,500 | 589,095 |
| 12,160,242 | |
Road & Rail 0.5% | ||
Burlington Northern Santa Fe Corp. | 31,300 | 1,473,604 |
CSX Corp. | 16,800 | 716,688 |
Norfolk Southern Corp. | 33,300 | 1,030,968 |
Union Pacific Corp. | 19,500 | 1,263,600 |
| 4,484,860 | |
Trading Companies & Distributors 0.0% | ||
W.W. Grainger, Inc. | 7,700 | 421,883 |
Information Technology 15.1% | ||
Communications Equipment 2.6% | ||
ADC Telecommunications, Inc.* | 8,400 | 182,868 |
Andrew Corp.* | 15,000 | 191,400 |
Avaya, Inc.* | 35,830 | 298,106 |
CIENA Corp.* | 47,900 | 100,111 |
Cisco Systems, Inc.* | 509,800 | 9,742,278 |
Comverse Technologies, Inc.* | 17,098 | 404,368 |
Corning, Inc.* | 113,649 | 1,888,846 |
JDS Uniphase Corp.* | 108,455 | 164,852 |
Lucent Technologies, Inc.* | 360,260 | 1,048,356 |
Motorola, Inc. | 196,981 | 3,596,873 |
QUALCOMM, Inc. | 129,100 | 4,261,591 |
Scientific-Atlanta, Inc. | 11,900 | 395,913 |
Tellabs, Inc.* | 40,500 | 352,350 |
| 22,627,912 | |
Computers & Peripherals 3.6% | ||
Apple Computer, Inc.* | 64,100 | 2,359,521 |
Dell, Inc.* | 196,000 | 7,743,960 |
EMC Corp.* | 193,300 | 2,650,143 |
Gateway, Inc.* | 26,300 | 86,790 |
Hewlett-Packard Co. | 231,626 | 5,445,527 |
International Business Machines Corp. | 128,655 | 9,546,201 |
Lexmark International, Inc. "A"* | 10,600 | 687,198 |
NCR Corp.* | 13,600 | 477,632 |
Network Appliance, Inc.* | 30,100 | 850,927 |
QLogic Corp.* | 8,100 | 250,047 |
Sun Microsystems, Inc.* | 275,400 | 1,027,242 |
| 31,125,188 | |
Electronic Equipment & Instruments 0.3% | ||
Agilent Technologies, Inc.* | 32,718 | 753,168 |
Jabil Circuit, Inc.* | 13,300 | 408,709 |
Molex, Inc. | 13,700 | 356,748 |
Sanmina-SCI Corp.* | 45,500 | 248,885 |
Solectron Corp.* | 70,500 | 267,195 |
Symbol Technologies, Inc. | 16,450 | 162,362 |
|
| Value ($) |
|
| |
Tektronix, Inc. | 5,500 | 127,985 |
| 2,325,052 | |
Internet Software & Services 0.4% | ||
Yahoo!, Inc.* | 102,200 | 3,541,230 |
IT Consulting & Services 1.1% | ||
Affiliated Computer Services, Inc. "A"* | 9,200 | 470,120 |
Automatic Data Processing, Inc. | 46,400 | 1,947,408 |
Computer Sciences Corp.* | 14,200 | 620,540 |
Convergys Corp.* | 9,700 | 137,934 |
Electronic Data Systems Corp. | 43,200 | 831,600 |
First Data Corp. | 61,919 | 2,485,429 |
Fiserv, Inc.* | 16,601 | 713,013 |
Paychex, Inc. | 30,100 | 979,454 |
Sabre Holdings Corp. | 8,290 | 165,385 |
SunGard Data Systems, Inc.* | 22,700 | 798,359 |
Unisys Corp.* | 23,100 | 146,223 |
| 9,295,465 | |
Office Electronics 0.1% | ||
Xerox Corp.* | 72,800 | 1,003,912 |
Semiconductors & Semiconductor Equipment 3.2% | ||
Advanced Micro Devices, Inc.* | 32,900 | 570,486 |
Altera Corp.* | 31,500 | 624,330 |
Analog Devices, Inc. | 28,300 | 1,055,873 |
Applied Materials, Inc. | 129,200 | 2,090,456 |
Applied Micro Circuits Corp.* | 29,400 | 75,264 |
Broadcom Corp. "A"* | 22,756 | 808,066 |
Freescale Semiconductor, Inc. "B"* | 30,032 | 636,078 |
Intel Corp. | 490,900 | 12,792,854 |
KLA-Tencor Corp. | 16,500 | 721,050 |
Linear Technology Corp. | 25,800 | 946,602 |
LSI Logic Corp.* | 29,400 | 249,606 |
Maxim Integrated Products, Inc. | 27,200 | 1,039,312 |
Micron Technology, Inc.* | 45,539 | 464,953 |
National Semiconductor Corp. | 26,500 | 583,795 |
Novellus Systems, Inc.* | 12,500 | 308,875 |
NVIDIA Corp.* | 14,000 | 374,080 |
PMC-Sierra, Inc.* | 17,424 | 162,566 |
Teradyne, Inc.* | 17,500 | 209,475 |
Texas Instruments, Inc. | 134,491 | 3,775,162 |
Xilinx, Inc. | 29,200 | 744,600 |
| 28,233,483 | |
Software 3.8% | ||
Adobe Systems, Inc. | 38,000 | 1,087,560 |
Autodesk, Inc. | 19,000 | 653,030 |
BMC Software, Inc.* | 15,900 | 285,405 |
Citrix Systems, Inc.* | 14,800 | 320,568 |
Computer Associates International, Inc. | 40,650 | 1,117,062 |
Compuware Corp.* | 28,100 | 202,039 |
Electronic Arts, Inc.* | 25,000 | 1,415,250 |
Intuit, Inc.* | 15,700 | 708,227 |
Mercury Interactive Corp.* | 7,400 | 283,864 |
Microsoft Corp. | 799,400 | 19,857,096 |
Novell, Inc.* | 34,200 | 212,040 |
Oracle Corp.* | 359,300 | 4,742,760 |
Parametric Technology Corp.* | 15,000 | 95,700 |
Siebel Systems, Inc.* | 43,984 | 391,458 |
Symantec Corp.* | 55,000 | 1,195,700 |
VERITAS Software Corp.* | 34,636 | 845,118 |
| 33,412,877 | |
|
| Value ($) |
|
| |
Materials 2.9% | ||
Chemicals 1.6% | ||
Air Products & Chemicals, Inc. | 19,300 | 1,163,790 |
Ashland, Inc.* | 6,000 | 431,220 |
Dow Chemical Co. | 76,816 | 3,420,617 |
E.I. du Pont de Nemours & Co. | 79,545 | 3,421,230 |
Eastman Chemical Co. | 7,000 | 386,050 |
Ecolab, Inc. | 16,500 | 533,940 |
Engelhard Corp. | 8,500 | 242,675 |
Great Lakes Chemical Corp. | 5,000 | 157,350 |
Hercules, Inc.* | 6,400 | 90,560 |
International Flavors & Fragrances, Inc. | 5,700 | 206,454 |
Monsanto Co. | 20,321 | 1,277,581 |
PPG Industries, Inc. | 12,500 | 784,500 |
Praxair, Inc. | 24,200 | 1,127,720 |
Rohm & Haas Co. | 14,542 | 673,876 |
Sigma-Aldrich Corp. | 6,700 | 375,468 |
| 14,293,031 | |
Construction Materials 0.1% | ||
Vulcan Materials Co. | 7,100 | 461,429 |
Containers & Packaging 0.2% | ||
Ball Corp. | 9,300 | 334,428 |
Bemis Co., Inc. | 6,200 | 164,548 |
Pactiv Corp.* | 9,700 | 209,326 |
Sealed Air Corp.* | 5,853 | 291,421 |
Temple-Inland, Inc. | 9,900 | 367,785 |
| 1,367,508 | |
Metals & Mining 0.6% | ||
Alcoa, Inc. | 68,676 | 1,794,504 |
Allegheny Technologies, Inc. | 8,350 | 184,201 |
Freeport-McMoRan Copper & Gold, Inc. "B"* | 14,200 | 531,648 |
Newmont Mining Corp. | 35,000 | 1,366,050 |
Nucor Corp. | 12,300 | 561,126 |
Phelps Dodge Corp. | 7,320 | 677,100 |
United States Steel Corp. | 9,800 | 336,826 |
| 5,451,455 | |
Paper & Forest Products 0.4% | ||
Georgia-Pacific Corp. | 18,977 | 603,469 |
International Paper Co. | 40,908 | 1,235,831 |
Louisiana-Pacific Corp. | 9,900 | 243,342 |
MeadWestvaco Corp. | 14,638 | 410,449 |
Weyerhaeuser Co. | 20,400 | 1,298,460 |
| 3,791,551 | |
Telecommunication Services 3.1% | ||
Diversified Telecommunication Services 2.8% | ||
ALLTEL Corp. | 27,500 | 1,712,700 |
AT&T Corp. | 61,904 | 1,178,652 |
BellSouth Corp. | 144,700 | 3,844,679 |
CenturyTel, Inc. | 12,250 | 424,217 |
Citizens Communications Co. | 24,400 | 327,936 |
Qwest Communications International, Inc.* | 130,991 | 485,977 |
SBC Communications, Inc. | 264,065 | 6,271,544 |
Sprint Corp. | 115,000 | 2,885,350 |
Verizon Communications, Inc. | 217,150 | 7,502,532 |
| 24,633,587 | |
Wireless Telecommunication Services 0.3% | ||
Nextel Communications, Inc. "A"* | 87,800 | 2,836,818 |
|
| Value ($) |
|
| |
Utilities 3.4% | ||
Electric Utilities 2.1% | ||
Allegheny Energy, Inc.* | 11,300 | 284,986 |
Ameren Corp. | 13,900 | 768,670 |
American Electric Power Co., Inc. | 29,640 | 1,092,827 |
CenterPoint Energy, Inc. | 20,200 | 266,842 |
Cinergy Corp. | 17,300 | 775,386 |
Consolidated Edison, Inc. | 21,100 | 988,324 |
DTE Energy Co. | 11,900 | 556,563 |
Edison International | 26,100 | 1,058,355 |
Entergy Corp. | 18,100 | 1,367,455 |
Exelon Corp. | 54,250 | 2,784,652 |
FirstEnergy Corp. | 27,984 | 1,346,310 |
FPL Group, Inc. | 29,100 | 1,223,946 |
PG&E Corp. | 30,300 | 1,137,462 |
Pinnacle West Capital Corp. | 5,900 | 262,255 |
PPL Corp. | 13,760 | 817,069 |
Progress Energy, Inc. | 20,108 | 909,686 |
Southern Co. | 61,500 | 2,132,205 |
TECO Energy, Inc. | 13,000 | 245,830 |
Xcel Energy, Inc. | 28,015 | 546,853 |
| 18,565,676 | |
Gas Utilities 0.1% | ||
KeySpan Corp. | 14,200 | 577,940 |
Nicor, Inc. | 2,700 | 111,159 |
NiSource, Inc. | 20,308 | 502,217 |
Peoples Energy Corp. | 2,200 | 95,612 |
| 1,286,928 | |
Independent Power Producers & Energy Traders 0.7% | ||
AES Corp.* | 49,300 | 807,534 |
Calpine Corp.* (e) | 47,689 | 162,143 |
Constellation Energy Group | 13,300 | 767,277 |
Duke Energy Corp. (e) | 76,900 | 2,286,237 |
Dynegy, Inc. "A"* | 28,735 | 139,652 |
TXU Corp. | 18,300 | 1,520,547 |
| 5,683,390 | |
|
| Value ($) |
|
| |
Multi-Utilities 0.5% | ||
CMS Energy Corp.* | 18,916 | 284,875 |
Dominion Resources, Inc. | 28,216 | 2,070,772 |
Public Service Enterprise Group, Inc. | 17,600 | 1,070,432 |
Sempra Energy | 19,610 | 810,089 |
| 4,236,168 | |
Total Common Stocks (Cost $855,113,306) | 865,128,651 | |
| Principal Amount ($) | Value ($) |
|
| |
US Government Backed 0.1% | ||
US Treasury Bill, 2.869%**, 7/14/2005 (c) (Cost $1,178,805) | 1,180,000 | 1,178,805 |
|
| Value ($) |
|
| |
Securities Lending Collateral 1.3% | ||
Scudder Daily Assets Fund Institutional, 3.19% (d) (f) (Cost $11,394,700) | 11,394,700 | 11,394,700 |
| ||
Cash Equivalents 0.5% | ||
Scudder Cash Management QP Trust, 3.14% (b) (Cost $4,162,866) | 4,162,866 | 4,162,866 |
|
| Value ($) |
|
| |
Total Investment Portfolio (Cost $871,849,677) (a) | 101.2 | 881,865,022 |
Other Assets and Liabilities, Net | (1.2) | (10,593,899) |
Net Assets | 100.0 | 871,271,123 |
Notes to Scudder VIT Equity 500 Index Fund Portfolio of Investments |
* Non-income producing security.
** Annualized yield at time of purchase; not a coupon rate.
(a) The cost for federal income tax purposes was $879,357,686. At June 30, 2005, net unrealized appreciation for all securities based on tax cost was $2,507,336. This consisted of aggregate gross unrealized appreciation for all securities in which there was a excess of value over tax cost of $125,322,286 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $122,814,950.
(b) Scudder Cash Management QP Trust is managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.
(c) At June 30, 2005, this security, in part or in whole, has been segregated to cover initial margin requirements for open futures contracts.
(d) Scudder Daily Assets Fund Institutional, an affiliated fund, is also managed by Deutsche Asset Management, Inc. The rate shown is the annualized seven-day yield at period end.
(e) All or a portion of this security was on loan. The value of all securities loaned at June 30, 2005 amounted to $11,135,432, which is 1.28% of net assets.
(f) Represents collateral held in connection with security lending.
REIT: Real Estate Investment Trust
At June 30, 2005, open futures contracts purchased were as follows:
Futures | Expiration Date | Contracts | Aggregate Face Value ($) | Value ($) | Unrealized Appreciation/ (Depreciation) ($) |
S&P 500 Index | 9/15/2005 | 22 | 6,629,499 | 6,575,250 | (54,249) |
The accompanying notes are an integral part of the financial statements.
Financial Statements |
|
Statement of Assets and Liabilities | |
Assets | |
Investments: Investments in securities, at value (cost $856,292,111) — including $11,135,432 of securities loaned | $ 866,307,456 |
Investment in Scudder Daily Assets Fund Institutional (cost $11,394,700)* | 11,394,700 |
Investment in Scudder Cash Management QP Trust (cost $4,162,866) | 4,162,866 |
Total investments in securities, at value (cost $871,849,677) | 881,865,022 |
Dividends receivable | 1,033,402 |
Interest receivable | 31,819 |
Receivable for Fund shares sold | 561,639 |
Other assets | 14,030 |
Total assets | 883,505,912 |
Liabilities | |
Payable upon return of securities loaned | 11,394,700 |
Payable for Fund shares redeemed | 545,663 |
Payable for daily variation margin on open futures contracts | 40,700 |
Accrued advisory fee | 84,065 |
Other accrued expenses and payables | 169,661 |
Total liabilities | 12,234,789 |
Net assets, at value | $ 871,271,123 |
Net Assets | |
Net assets consist of: Undistributed net investment income | 6,092,896 |
Net unrealized appreciation (depreciation) on: Investments | 10,015,345 |
Futures | (54,249) |
Accumulated net realized gain (loss) | (26,648,778) |
Paid-in capital | 881,865,909 |
Net assets, at value | $ 871,271,123 |
Class A Net Asset Value, offering and redemption price per share ($815,991,135 ÷ 65,762,146 outstanding shares of beneficial interest, $.001 par value, unlimited number of shares authorized) | $ 12.41 |
Class B Net Asset Value, offering and redemption price per share ($55,279,988 ÷ 4,452,692 outstanding shares of beneficial interest, $.001 par value, unlimited number of shares authorized) | $ 12.41 |
* Represents collateral on securities loaned.
Statement of Operations | |
Investment Income | |
Income: Dividends | $ 7,478,062 |
Interest | 83,019 |
Interest — Scudder Cash Management QP Trust | 33,337 |
Securities lending income, including income from Scudder Daily Assets Fund Institutional, net of borrower rebates | 10,406 |
Total Income | 7,604,824 |
Expenses: Advisory fee | 825,729 |
Adminstrative service fee | 124,551 |
Custodian fees | 21,282 |
Distribution service fees (Class B) | 66,862 |
Services to shareholders | 67,335 |
Auditing | 17,475 |
Legal | 16,310 |
Trustees' fees and expenses | 17,327 |
Reports to shareholders | 33,056 |
Registration fees | 2,499 |
Total expenses, before expense reductions | 1,192,426 |
Expense reductions | (129) |
Total expenses, after expense reductions | 1,192,297 |
Net investment income (loss) | 6,412,527 |
Realized and Unrealized Gain (Loss) on Investment Transactions | |
Net realized gain (loss) from: Investments | (2,319,443) |
Futures | (256,264) |
| (2,575,707) |
Net unrealized appreciation (depreciation) during the period on: Investments | (11,225,827) |
Futures | (115,174) |
| (11,341,001) |
Net gain (loss) on investment transactions | (13,916,708) |
Net increase (decrease) in net assets resulting from operations | $ (7,504,181) |
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 June 30, 2005 (Unaudited) | Year Ended December 31, 2004 |
Operations: Net investment income (loss) | $ 6,412,527 | $ 12,737,520 |
Net realized gain (loss) on investment transactions | (2,575,707) | 1,928,675 |
Net unrealized appreciation (depreciation) on investment transactions during the period | (11,341,001) | 62,935,869 |
Net increase (decrease) in net assets resulting from operations | (7,504,181) | 77,602,064 |
Distributions to shareholders from: Net investment income Class A | (12,006,950) | (7,389,469) |
Class B | (714,321) | (217,946) |
Portfolio share transactions: Class A Proceeds from shares sold | 117,840,505 | 204,875,496 |
Reinvestment of distributions | 12,006,950 | 7,389,469 |
Cost of shares redeemed | (85,131,436) | (114,827,674) |
Net increase (decrease) in net assets from Class A share transactions | 44,716,019 | 97,437,291 |
Class B Proceeds from shares sold | 13,126,367 | 57,585,613 |
Reinvestment of distributions | 714,321 | 217,946 |
Cost of shares redeemed | (10,700,379) | (25,884,728) |
Net increase (decrease) in net assets from Class B share transactions | 3,140,309 | 31,918,831 |
Increase (decrease) in net assets | 27,630,876 | 199,350,771 |
Net assets at beginning of period | 843,640,247 | 644,289,476 |
Net assets at end of period (including undistributed net investment income of $6,092,896 and $12,401,640, respectively) | $ 871,271,123 | $ 843,640,247 |
Other Information | ||
Class A Shares outstanding at beginning of period | 62,064,495 | 53,842,448 |
Shares sold | 9,472,759 | 17,356,257 |
Shares issued to shareholders in reinvestment of distributions | 1,010,686 | 638,123 |
Shares redeemed | (6,785,794) | (9,772,333) |
Net increase (decrease) in Portfolio shares | 3,697,651 | 8,222,047 |
Shares outstanding at end of period | 65,762,146 | 62,064,495 |
Class B Shares outstanding at beginning of period | 4,191,602 | 1,488,624 |
Shares sold | 1,053,327 | 4,853,521 |
Shares issued to shareholders in reinvestment of distributions | 60,077 | 18,805 |
Shares redeemed | (852,314) | (2,169,348) |
Net increase (decrease) in Portfolio shares | 261,090 | 2,702,978 |
Shares outstanding at end of period | 4,452,692 | 4,191,602 |
The accompanying notes are an integral part of the financial statements.
Financial Highlights |
|
Class A
Years Ended December 31, | 2005a | 2004 | 2003 | 2002 | 2001 | 2000 |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $ 12.73 | $ 11.64 | $ 9.20 | $ 11.98 | $ 13.77 | $ 15.18 |
Income (loss) from investment operations: Net investment income (loss)b | .10 | .21 | .15 | .14 | .09 | .13 |
Net realized and unrealized gain (loss) on investment transactions | (.22) | 1.01 | 2.41 | (2.81) | (1.77) | (1.53) |
Total from investment operations | (.12) | 1.22 | 2.56 | (2.67) | (1.68) | (1.40) |
Less distributions from: Net investment income | (.20) | (.13) | (.12) | (.11) | (.10) | — |
Net realized gains on investment transactions | — | — | — | — | (.01) | (.01) |
Total distributions | (.20) | (.13) | (.12) | (.11) | (.11) | (.01) |
Net asset value, end of period | $ 12.41 | $ 12.73 | $ 11.64 | $ 9.20 | $ 11.98 | $ 13.77 |
Total Return (%) | (.91)** | 10.59 | 28.16c | (22.31)c | (12.18)c | (9.24)c |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 816 | 790 | 627 | 395 | 466 | 428 |
Ratio of expenses before expense reductions (%) | .27* | .28 | .30 | .32 | .31 | .34 |
Ratio of expenses after expense reductions (%) | .27* | .29 | .30 | .30 | .30 | .30 |
Ratio of net investment income (loss) (%) | 1.57* | 1.76 | 1.50 | 1.33 | 1.06 | 1.00 |
Portfolio turnover rate (%) | 5** | 1 | 1 | 10 | 2d | 3 |
a For the six months ended June 30, 2005 (Unaudited).
b Based on average shares outstanding during the period.
c Total return would have been lower had certain expenses not been reduced.
d Portfolio turnover excludes the impact of redemption in kind.
* Annualized
** Not annualized
Class B
Years Ended December 31, | 2005a | 2004 | 2003 | 2002b |
Selected Per Share Data | ||||
Net asset value, beginning of period | $ 12.72 | $ 11.63 | $ 9.20 | $ 11.27 |
Income (loss) from investment operations: Net investment income (loss)c | .08 | .20 | .14 | .09 |
Net realized and unrealized gain (loss) on investment transactions | (.22) | .99 | 2.40 | (2.07) |
Total from investment operations | (.14) | 1.19 | 2.54 | (1.98) |
Less distributions from: Net investment income | (.17) | (.10) | (.11) | (.09) |
Net asset value, end of period | $ 12.41 | $ 12.72 | $ 11.63 | $ 9.20 |
Total Return (%) | (1.08)** | 10.32 | 27.83 | (17.56)** |
Ratios to Average Net Assets and Supplemental Data | ||||
Net assets, end of period ($ millions) | 55 | 53 | 17 | 3 |
Ratio of expenses before expense reductions (%) | .52* | .53 | .55 | .55* |
Ratio of expenses after expense reductions (%) | .52* | .54 | .55 | .55* |
Ratio of net investment income (loss) (%) | 1.32* | 1.71 | 1.29 | 1.45* |
Portfolio turnover rate (%) | 5** | 1 | 1 | 10 |
a For the six months ended June 30, 2005 (Unaudited).
b For the period April 30, 2002 (commencement of operations) to December 31, 2002.
c Based on average shares outstanding during the period.
* Annualized
** Not annualized
Notes to Financial Statements (Unaudited) |
|
A. Significant Accounting Policies
Scudder Investments VIT Funds (the "Trust") is registered under the Investment Company Act of 1940 (the "1940 Act"), as amended, as a diversified, open-end management investment company. The Trust is organized as a Massachusetts business trust. The Trust is comprise of several funds. Scudder VIT Equity 500 Index Fund (the "Fund") is one of the series the Trust offers to investors.
Multiple Classes of Shares of Beneficial Interest. The Fund offers two classes of shares to investors: Class A Shares and Class B Shares. Class B Shares are subject to Rule 12b-1 fees under the 1940 Act equal to an annual rate up to 0.25% of the Class B Shares average daily net assets. All shares have equal rights with respect to voting except that shareholders vote separately on matters affecting their rights as holders of a particular class.
Investment income, realized and unrealized gains and losses, and certain portfolio-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 (including the applicable 12b-1 fee). Differences in class-level expenses may result in payment of different per share dividends by class. All shares have equal rights with respect to voting subject to class-specific arrangements.
The Trust'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 Portfolio 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 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. 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 and tax-exempt income to its shareholders. Accordingly, the Fund paid no federal income taxes and no federal income tax provision was required.
At December 31, 2004, the Fund had a net tax basis capital loss carryforward of approximately $16,576,761 which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until December 31, 2011, the expiration date, whichever occurs first. This may be subject to certain limitations under sections 382-384 of the Internal Revenue Code.
Distribution of Income and Gains. Net investment income of the Fund, if any, is distributed to shareholders 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 investments in futures contracts and certain securities sold at a loss. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the 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 current fiscal year.
Securities Lending. The Fund may lend securities to financial institutions. The Fund retains beneficial ownership of the securities it has loaned and continues to receive interest and dividends paid by the securities and to participate in any changes in their market value. The Fund requires the borrowers of the securities to maintain collateral with the Fund consisting of liquid, unencumbered assets having a value at least equal to the value of the securities loaned. The Fund may invest the cash collateral into a joint trading account in an affiliated money market fund pursuant to Exemptive Orders issued by the SEC. The Fund receives compensation for lending its securities either in the form of fees or by earning interest on invested cash collateral net of fees paid to a lending agent. Either the Fund or the borrower may terminate the loan. The Fund is subject to all investment risks associated with the value of any cash collateral received, including, but not limited to, interest rate, credit and liquidity risk associated with such investments.
Contingencies. In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.
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 security transactions are reported on trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date net of foreign withholding taxes. Certain dividends from foreign securities may be recorded subsequent to the ex-dividend as soon as the Fund is informed of such dividends. 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 June 30, 2005, purchases and sales of investment securities (excluding short-term investments) aggregated $85,726,689 and $40,061,470, respectively.
C. Related Parties
Deutsche Asset Management, Inc. ("DeAM" or "Advisor"), an indirect, wholly-owned subsidiary of Deutsche Bank AG, is the Fund's Advisor. The Fund pays the Advisor an annual fee based on its average daily net assets, which is calculated daily and paid monthly at the annual rate of 0.20%.
Northern Trust Investments, N.A. ("NTI") acts as investment sub-advisor for the Fund. As the Fund's investment sub-advisor, NTI makes the Fund's investment decisions. It buys and sells securities for the Fund and conducts the research that leads to these purchase and sale decisions. DeAM, Inc. pays a fee to NTI for acting as investment sub-advisor to the Fund.
The Advisor has contractually agreed to waive its fees and/or reimburse expenses of the Fund, to the extent necessary, to limit all expenses to 0.30% of average daily net assets for Class A Shares and 0.55% of average daily net assets for Class B Shares until April 30, 2006.
Effective May 1, 2002, the Advisor may recoup any of its waived investment advisory fees within the following three years if the Fund is able to make the repayment without exceeding its current expense limits. At June 30, 2005, there were no amounts subject to repayment to the Advisor.
Investment Company Capital Corp. ("ICCC" or the "Administrator"), an affiliate of the Advisor, is the Fund's Administrator. The Fund pays the Administrator an annual fee ("Administrator service fee") based on its average daily net assets which is accrued daily and payable monthly at an annual rate of 0.03%. For the six months ended June 30, 2005, ICCC received an administrator service fee of $124,551, all of which is paid.
ICCC has entered into a sub-accounting agreement with Scudder Fund Accounting Corp. ("SFAC"), a wholly owned subsidiary of Deutsche Bank AG. Under the agreement, SFAC performs accounting services and other related services to the Fund. Pursuant to a sub-accounting agreement between SFAC and State Street Bank and Trust Company, SFAC has delegated certain accounting functions to State Street Corp. The costs and expenses of such delegation are borne by ICCC, not by the Fund.
Scudder Distributors, Inc. ("SDI"), also an affiliate of the Advisor, is the Fund's Distributor. In accordance with the Distribution Plan, SDI receives 12b-1 fees of up to 0.25% of average daily net assets of Class B shares. For the six months ended June 30, 2005, the Distribution fee was $66,862, of which $11,412 was unpaid.
Service Provider Fees. Scudder Investments Service Company ("SISC"), an affiliate of the Advisor, is the transfer, dividend-paying and shareholder service agent for the Fund. Pursuant to a sub-transfer agency agreement between SISC and DST Systems, Inc. ("DST"), SISC has delegated certain transfer agent and dividend paying agent functions to DST. SISC compensates DST out of the shareholder servicing fee it receives from the Fund. For the six months ended June 30, 2005, the amount charged to the Fund by SISC aggregated $66,885, of which all is unpaid at June 30, 2005.
Typesetting and Filing Service Fees. Under an agreement with Deutsche Investment Management Americas Inc. ("DeIM"), an indirect, wholly owned subsidiary of Deutsche Bank AG, DeIM is compensated for providing typesetting and regulatory filing services to the Fund. For the six months ended June 30, 2005, the amount charged to the Fund by DeIM included in the reports to shareholders aggregated $6,340, of which $3,100 is unpaid at June 30, 2005.
Trustees Fees and Expenses. The Fund pays each Trustee not affiliated with the Advisor retainer fees 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 Management QP Trust (the "QP Trust") and other affiliated funds managed by the Manager or 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 Manager or Advisor a management fee for the affiliated funds' investments in the QP Trust.
D. Expense Reductions
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 year ended December 31, 2004, the Fund's custodian fees were reduced by $129 for custody credits earned.
E. Line of Credit
The Fund and several other funds and portfolios advised or administered by the Advisor or its affiliates (the "Participants") share in a $1.1 billion revolving credit facility administered by J.P. Morgan Chase Bank for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated, based upon net assets, among each of the Participants. Interest is calculated at the Federal Funds Rate plus 0.5%. The Fund may borrow up to a maximum of 33% of its net assets under the agreement.
F. 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. It is not possible to determine what the outcome of these inquiries will be or what the effect, if any, would be on the funds or their advisors. Publicity about mutual fund practices arising from these industry-wide inquiries serves as the general basis of a number of private lawsuits against the Scudder funds. These lawsuits, which previously have been reported in the press, involve purported class action and derivative lawsuits, making various allegations and naming as defendants various persons, including certain Scudder funds, the funds" investment advisors and their affiliates, certain individuals, including in some cases fund Trustees/Directors, officers, and other parties. Each Scudder fund's investment advisor has agreed to indemnify the applicable Scudder funds in connection with these lawsuits, or other lawsuits or regulatory actions that may be filed making allegations similar to these lawsuits regarding market timing, revenue sharing, fund valuation or other subjects arising from or related to the pending inquiries. Based on currently available information, the funds" investment advisors believe 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 their ability to perform under their investment management agreements with the Scudder funds.
Proxy Voting |
|
A description of the Fund's policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies related to its portfolio securities during the twelve-month period ended June 30 is available on our Web site — scudder.com (type "proxy voting" in the search field) — or on the SEC's Web site — www.sec.gov. To obtain a written copy of the Fund's policies and procedures without charge, upon request, call us toll free at (800) 621-1048.
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not Applicable
ITEM 6. SCHEDULE OF INVESTMENTS
Not Applicable
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not Applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Nominating and Governance Committee evaluates and nominates Board member
candidates. Fund shareholders may also submit nominees that will be considered
by the Committee when a Board vacancy occurs. Submissions should be mailed to
the attention of the Secretary of the Fund, One South Street, Baltimore, MD
21202.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The Chief Executive and Financial Officers concluded that the Registrant's
Disclosure Controls and Procedures are effective based on the evaluation of the
Disclosure Controls and Procedures as of a date within 90 days of the filing
date of this report.
(b) There have been no changes in the registrant's internal control over
financial reporting that occurred during the registrant's last half-year (the
registrant's second fiscal half-year in the case of the annual report) that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal controls over financial reporting.
ITEM 12. 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: Equity 500 Index Fund, a series of Scudder
Investments VIT Funds
By: /s/Julian Sluyters
----------------------------
Julian Sluyters
Chief Executive Officer
Date: August 23, 2005
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: Equity 500 Index Fund, a series of Scudder
Investments VIT Funds
By: /s/Julian Sluyters
----------------------------
Julian Sluyters
Chief Executive Officer
Date: August 23, 2005
By: /s/ Paul Schubert
---------------------------
Paul Schubert
Chief Financial Officer
Date: August 23, 2005