UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number 811-09057
SCUDDER INVESTORS TRUST
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(Exact Name of Registrant as Specified in Charter)
222 South Riverside Plaza, Chicago, Illinois 60606
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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: 8/31
Date of reporting period: 2/29/2004
ITEM 1. REPORT TO STOCKHOLDERS
[Scudder Investments logo]
| ||
Semiannual Report to Shareholders | ||
February 29, 2004 | ||
Contents |
<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. While the fund seeks to closely track the characteristics and performance of the S&P 500 index, important differences between the two exist. The index is not available for direct investment, and there are no fees or expenses associated with the index's performance. As with most other mutual funds, this Scudder fund has fees and expenses. The S&P 500 index and the fund include stocks from many industries. Index and fund composition change periodically as companies are added or dropped, and prices of stocks in the index fluctuate. Please read this fund's prospectus for specific details regarding its 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.
"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 Scudder Investments, Inc. The product is not sponsored, endorsed, sold, or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the product.
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 4.5%. 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 had a 1% front-end sales charge through February 29, 2004, and 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 periods shown reflect a fee waiver and/or expense reimbursement. Without this waiver/reimbursement returns would have been lower.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the sale of fund shares. Returns and rankings may differ by share class.
Average Annual Total Returns (Unadjusted for Sales Charge) as of 2/29/04 | ||||
Scudder S&P 500 Stock Fund | 6-Month** | 1-Year | 3-Year | Life of Fund* |
| Class A | 14.24% | 37.43% | -2.02% | -6.37% |
| Class B | 13.76% | 36.21% | -2.83% | -7.10% |
| Class C | 13.76% | 36.17% | -2.78% | -7.06% |
| S&P 500 Index+ | 14.59% | 38.52% | -1.04% | -5.23% |
Sources: Lipper, Inc. and Deutsche Investment Management Americas Inc.
* The Fund commenced operations on April 3, 2000. Index returns begin March 31, 2000.** Total returns shown for periods less than one year are not annualized.
Net Asset Value and Distribution Information | |||
Class A | Class B | Class C | |
| Net Asset Value: 2/29/04 | $ 7.19 | $ 7.11 | $ 7.11 |
| 8/31/03 | $ 6.34 | $ 6.25 | $ 6.26 |
| Distribution Information: Six Months: Income Dividends as of 2/29/04 | $ .05 | $ - | $ .01 |
Class A Lipper Rankings - S&P 500 Index Objective Funds Category as of 2/29/04 | ||||
Period | Rank | Number of Funds Tracked | Percentile Ranking | |
| 1-Year | 121 | of | 165 | 73 |
| 3-Year | 124 | of | 151 | 82 |
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, results might have been less favorable. Rankings are for Class A shares; other share classes may vary.
Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge) |
[] Scudder S&P 500 Stock Fund - Class A [] S&P 500 Index+ |
 |
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 4.50%. This results in a net initial investment of $9,550.
The growth of $10,000 is cumulative.
* The Fund commenced operations on April 3, 2000. Index returns begin March 31, 2000.Comparative Results (Adjusted for Maximum Sales Charge) as of 2/29/04 | ||||
Scudder S&P 500 Stock Fund | 1-Year | 3-Year | Life of Fund* | |
Class A | Growth of $10,000 | $13,125 | $8,984 | $7,389 |
| Average annual total return | 31.25% | -3.51% | -7.46% | |
Class B | Growth of $10,000 | $13,321 | $8,991 | $7,353 |
| Average annual total return | 33.21% | -3.48% | -7.58% | |
Class C | Growth of $10,000 | $13,466 | $9,087 | $7,432 |
| Average annual total return | 34.66% | -3.14% | -7.33% | |
| S&P 500 Index+ | Growth of $10,000 | $13,852 | $9,691 | $8,104 |
| Average annual total return | 38.52% | -1.04% | -5.23% | |
The growth of $10,000 is cumulative.
* The Fund commenced operations on April 3, 2000. Index returns begin March 31, 2000.+ The Standard & Poor's (S&P) 500 Index is a 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. 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.
In the following interview, portfolio managers of Northern Trust Investments, N.A., the fund's subadvisor, discuss Scudder S&P 500 Stock Fund's market environment and investment results for the fund's most recent semiannual period ended February 29, 2004.
Q: How did the stock market perform during the fund's most recent semiannual period?
A: Following a brief lull in late summer of 2003 when the Standard & Poors 500 index (S&P 500) broke 1,000 and stocks weathered some profit taking and increased volatility, the six-month period saw another strong run for the stock market. With the exception of job growth, most economic statistics - including earnings and consumer sentiment - began to point in a positive direction, signaling that the US economy seemed to be moving into a period of expansion. In addition, market participants continued to be encouraged by the Federal Reserve Board's monetary policy of maintaining low short-term interest rates, and the federal government's fiscal policy of lower taxes and increased spending.
Q: Which areas of the stock market led the way?
A: For much of 2003, the market was led by the higher-risk areas, including growth stocks, technology and small companies. Following a three-year hiatus in which many investors were content to sit on the sidelines, investors finally responded to stronger economic statistics and began snapping up perceived bargains, regardless of whether individual companies possessed weak or strong business fundamentals. After a significant run-up in the prices of these stocks, and a continued lack of job growth, investors began to move into less risky, value-oriented stocks in January and February of 2004.
Q: How did the fund perform during its most recent semiannual period?
A: The total return of Scudder S&P 500 Stock Fund for the six-month period ended February 29, 2004 was 14.24%, in keeping with the 14.59% return of the S&P 500 index. (Fund return is for Class A shares, unadjusted for sales charges. If sales charges had been included, return would have been lower. Past performance is no guarantee of future results. Please see pages 3 through 5 for performance of other share classes and more complete performance information.)
Q: What industries and individual stocks were the key drivers of the index's performance?
A: On a sector basis, the best performers in the S&P 500 index were financial stocks, contributing 4.05% to the index's total return during the six-month period. Financials benefited from several factors, including the continued low-interest-rate environment, stellar financial results based on increased trading volume, and a significant pickup in merger and acquisition activity within the sector. Information technology was the second-largest contributor to the index's total return at 2.38%, followed by health care at 1.80%. In a remarkable showing for the overall market, each sector of the S&P 500 made a positive contribution to performance during the period. The sectors with the lowest contributions to the index's total return were utilities at 0.50%, and materials and telecommunications, both at 0.53%.
In terms of individual stocks within the index, the top performer for the six-month period was Pfizer, Inc. Pfizer, along with several other names in the drug company sector, has benefited from the introduction of new anti-cholesterol drugs. Citigroup, Inc. was the second-largest individual contributor to return. Individual stocks that detracted from the index's performance during the period included Viacom, Inc., which suffered sluggish results from its Blockbuster video rental unit and retailer Kohl's Corp.
A complete listing of sector performance within the S&P 500 index for the semiannual period ended February 29, 2004 is displayed in the accompanying chart:
S&P 500 Sector Performance1 | |||
Economic Sector | Average Weight | Total Return | Contribution to Index Return |
| Utilities | 2.82% | 17.86% | 0.50 |
| Materials | 2.89% | 18.19% | 0.53 |
| Telecommunication services | 3.43% | 15.83% | 0.53 |
| Energy | 5.64% | 19.33% | 1.04 |
| Consumer discretionary | 11.20% | 11.76% | 1.36 |
| Industrials | 10.73% | 12.82% | 1.41 |
| Consumer staples | 11.18% | 14.35% | 1.59 |
| Health care | 13.42% | 13.39% | 1.80 |
| Information technology | 17.94% | 12.84% | 2.38 |
| Financials | 20.75% | 20.04% | 4.05 |
Source: FactSet Research Systems Inc. as of 2/29/04. FactSet sector returns vary slightly in relation to the overall index return, which is provided by Lipper Inc.
1 The total return of each sector should be distinguished from its contribution to index return. Whereas the former represents the "total return" of a sector independent of the index, the latter represents the sector's "contribution" to the index's return.Q: What changes were made to the index during the period?
A: With the economy only now emerging from its recent downturn, 2003 witnessed a comparatively depressed level of business activity, resulting in the lowest turnover for the S&P 500 index in the past five years. The only significant change to the index was the addition of M&T Bank Corp. in late February. Going forward, we anticipate several deletions from the index because of the step-up of merger and acquisition activity, especially in the financials sector.
Q: Will you review the fund's investment process?
A: We seek to provide investment results that, before fund expenses, correspond to the total return of the S&P 500 index. The fund offers investors a convenient means of participating in the large-cap area of the stock market - as measured by the S&P 500 - while relieving investors of the time and paperwork it would require to own all of these investments directly. The fund employs a "passive," or "indexing," approach, attempting to duplicate the overall performance of the S&P 500. In doing so, we as managers attempt to allocate the fund's portfolio in approximately the same weighting as the index, beginning with the heaviest-weighted stocks that make up a larger portion of the index's value. Because the portfolio turnover rate of index funds is typically lower than that of actively managed funds, index funds tend to generate fewer taxable capital gains.
Q: How do you assess the stock market at present?
A: Following the close of the period, the market engaged in a rapid sell-off, based on three factors: (1) a feeling that many stocks that had run up significantly over the past 12 months were fully valued pending a boost in earnings results; (2) anxiety over the fact that the US economy still has not produced significant numbers of new jobs despite continuing optimistic forecasts from economists; and (3) concern over the decline of the US dollar versus major currencies. At the same time, we know that there is still a considerable amount of cash on the sidelines because a lot of money has flowed out of bond funds over the past 12 months without being reinvested in bonds or stocks. We can't be certain when that money might come into the stock market.
Going forward, we continue to believe that Scudder S&P 500 Stock Fund is a suitable vehicle for investors seeking to participate in the long-term growth of large American and multinational corporations.
The views expressed in this report reflect those of the portfolio management team only through the end of the report period as stated on the cover. The team's views are subject to change at any time based on market and other conditions and should not be construed as a recommendation.
Asset Allocation | 2/29/04 | 8/31/03 |
| Common Stocks | 98% | 99% |
| Cash Equivalents | 2% | 1% |
| 100% | 100% | |
Sector Diversification (Excludes Cash Equivalents) | 2/29/04 | 8/31/03 |
| Financials | 21% | 20% |
| Information Technology | 17% | 16% |
| Health Care | 13% | 13% |
| Consumer Staples | 11% | 12% |
| Consumer Discretionary | 11% | 11% |
| Industrials | 11% | 12% |
| Energy | 6% | 6% |
| Telecommunication Services | 4% | 4% |
| Materials | 3% | 3% |
| Other | 3% | 3% |
| 100% | 100% | |
Asset allocation and sector diversification are subject to change.
Ten Largest Equity Holdings at February 29, 2004 (22.3% of Portfolio) | |
| 1. General Electric Co. Industrial conglomerate | 3.0% |
| 2. Microsoft Corp. Developer of computer software | 2.7% |
| 3. ExxonMobil Corp. Explorer and producer of oil and gas | 2.6% |
| 4. Pfizer, Inc. Manufacturer of prescription pharmaceuticals and non-prescription self-medications | 2.6% |
| 5. Citigroup, Inc. Provider of diversified financial services | 2.4% |
| 6. Wal-Mart Stores, Inc. Operator of discount stores | 2.4% |
| 7. American International Group, Inc. Provider of insurance services | 1.8% |
| 8. Intel Corp. Designer, manufacturer and seller of computer components and related products | 1.8% |
| 9. International Business Machines Corp. Manufacturer of computers and provider of information processing services | 1.5% |
| 10. Johnson & Johnson Provider of health care products | 1.5% |
Portfolio holdings are subject to change.
For more complete details about the fund's investment portfolio, see page 13. 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.
| Value ($) | |
Common Stocks 98.1% | ||
| Consumer Discretionary 10.9% | ||
| Auto Components 0.2% | ||
| Cooper Tire & Rubber Co. | 800 | 15,960 |
| Dana Corp. | 1,602 | 34,267 |
| Delphi Corp. | 6,081 | 62,026 |
| Goodyear Tire & Rubber Co. | 1,880 | 15,829 |
| Johnson Controls, Inc. | 1,974 | 115,124 |
| Visteon Corp. | 1,381 | 13,948 |
257,154 | ||
| Automobiles 0.7% | ||
| Ford Motor Co. | 19,902 | 273,653 |
| General Motors Corp. | 6,137 | 295,312 |
| Harley-Davidson, Inc. | 3,333 | 177,049 |
746,014 | ||
| Distributors 0.1% | ||
| Genuine Parts Co. | 1,873 | 65,049 |
| Hotels Restaurants & Leisure 1.3% | ||
| Carnival Corp. "A" | 6,832 | 303,136 |
| Darden Restaurants, Inc. | 1,819 | 44,384 |
| Harrah's Entertainment, Inc. | 1,173 | 60,937 |
| Hilton Hotels Corp. | 4,131 | 66,220 |
| International Game Technology | 3,792 | 148,798 |
| Marriott International, Inc. "A" | 2,534 | 113,093 |
| McDonald's Corp. | 13,820 | 391,106 |
| Starbucks Corp.* | 4,240 | 158,618 |
| Starwood Hotels & Resorts Worldwide, Inc. | 2,161 | 84,301 |
| Wendy's International, Inc. | 1,257 | 51,122 |
| YUM! Brands, Inc.* | 3,246 | 120,199 |
1,541,914 | ||
| Household Durables 0.5% | ||
| American Greetings Corp. "A"* | 715 | 16,209 |
| Black & Decker Corp. | 799 | 41,180 |
| Centex Corp. | 653 | 69,740 |
| Fortune Brands, Inc. | 1,610 | 115,083 |
| KB Home | 515 | 37,260 |
| Leggett & Platt, Inc. | 2,058 | 50,359 |
| Maytag Corp. | 811 | 22,895 |
| Newell Rubbermaid, Inc. | 2,991 | 76,540 |
| Pulte Homes, Inc. | 1,330 | 70,171 |
| Snap-On, Inc. | 615 | 19,680 |
| The Stanley Works | 839 | 32,494 |
| Tupperware Corp. | 615 | 11,747 |
| Whirlpool Corp. | 792 | 57,769 |
621,127 | ||
| Internet & Catalog Retail 0.4% | ||
| eBay, Inc.* | 7,000 | 482,020 |
| Leisure Equipment & Products 0.2% | ||
| Brunswick Corp. | 1,010 | 39,754 |
| Eastman Kodak Co. | 3,071 | 87,646 |
| Hasbro, Inc. | 1,861 | 40,700 |
| Mattel, Inc. | 4,703 | 89,357 |
257,457 | ||
| Media 3.7% | ||
| Clear Channel Communications, Inc. | 6,662 | 286,732 |
| Comcast Corp. "A"* | 24,552 | 737,542 |
| Dow Jones & Co., Inc. | 960 | 46,752 |
| Gannett Co., Inc. | 2,993 | 258,206 |
| Interpublic Group of Companies, Inc. | 4,595 | 77,885 |
| Knight-Ridder, Inc. | 912 | 68,181 |
| McGraw-Hill, Inc. | 2,063 | 161,265 |
| Meredith Corp. | 515 | 25,904 |
| New York Times Co. "A" | 1,662 | 75,854 |
| Omnicom Group, Inc. | 2,047 | 167,445 |
| Time Warner, Inc.* | 49,158 | 847,975 |
| Tribune Co. | 3,366 | 168,098 |
| Univision Communications, Inc. "A"* | 3,293 | 117,330 |
| Viacom, Inc. "B" | 19,002 | 730,817 |
| Walt Disney Co. | 22,252 | 590,346 |
4,360,332 | ||
| Multiline Retail 1.1% | ||
| Big Lots, Inc.* | 1,230 | 17,712 |
| Dillard's, Inc. "A" | 915 | 16,104 |
| Dollar General Corp. | 3,639 | 79,658 |
| Family Dollar Stores, Inc. | 1,924 | 73,189 |
| Federated Department Stores, Inc. | 1,948 | 102,017 |
| J.C. Penny Co., Inc. | 2,981 | 92,023 |
| Kohl's Corp.* | 3,736 | 192,404 |
| Nordstrom, Inc. | 1,470 | 57,536 |
| Sears, Roebuck & Co. | 2,752 | 129,371 |
| Target Corp. | 9,930 | 436,523 |
| The May Department Stores Co. | 3,164 | 111,436 |
1,307,973 | ||
| Specialty Retail 2.4% | ||
| AutoNation, Inc.* | 2,900 | 48,372 |
| AutoZone, Inc.* | 943 | 84,587 |
| Bed Bath & Beyond, Inc.* | 3,255 | 133,064 |
| Best Buy Co., Inc. | 3,545 | 188,771 |
| Boise Cascade Corp. | 1,102 | 37,137 |
| Circuit City Stores, Inc. | 2,298 | 25,692 |
| Home Depot, Inc. | 24,811 | 900,887 |
| Limited Brands | 5,578 | 110,166 |
| Lowe's Companies, Inc. | 8,570 | 479,920 |
| Office Depot, Inc.* | 3,415 | 59,523 |
| RadioShack Corp. | 1,742 | 60,204 |
| Sherwin-Williams Co. | 1,633 | 57,155 |
| Staples, Inc.* | 5,361 | 140,565 |
| The Gap, Inc. | 9,712 | 202,010 |
| Tiffany & Co. | 1,604 | 67,448 |
| TJX Companies, Inc. | 5,454 | 128,442 |
| Toys "R" Us, Inc.* | 2,315 | 36,346 |
2,760,289 | ||
| Textiles, Apparel & Luxury Goods 0.3% | ||
| Jones Apparel Group, Inc. | 1,413 | 52,705 |
| Liz Claiborne, Inc. | 1,198 | 44,206 |
| NIKE, Inc. "B" | 2,882 | 211,107 |
| Reebok International Ltd. | 580 | 23,090 |
| VF Corp. | 1,267 | 56,926 |
388,034 | ||
| Consumer Staples 11.0% | ||
| Beverages 2.6% | ||
| Adolph Coors Co. "B" | 408 | 27,654 |
| Anheuser-Busch Companies, Inc. | 8,922 | 474,829 |
| Brown-Forman Corp. "B" | 1,344 | 65,668 |
| Coca-Cola Enterprises, Inc. | 4,920 | 114,685 |
| Pepsi Bottling Group, Inc. | 2,820 | 81,583 |
| PepsiCo, Inc. | 18,675 | 969,232 |
| The Coca-Cola Co. | 26,732 | 1,335,531 |
3,069,182 | ||
| Food & Drug Retailing 3.6% | ||
| Albertsons, Inc. | 4,070 | 100,692 |
| Costco Wholesale Corp.* | 4,941 | 192,353 |
| CVS Corp. | 4,324 | 162,150 |
| Kroger Co.* | 8,144 | 156,528 |
| Safeway, Inc.* | 4,859 | 111,125 |
| Supervalu, Inc. | 1,476 | 41,771 |
| Sysco Corp. | 7,070 | 280,325 |
| Wal-Mart Stores, Inc. | 47,039 | 2,801,643 |
| Walgreen Co. | 11,116 | 396,397 |
| Winn-Dixie Stores, Inc. | 1,546 | 9,461 |
4,252,445 | ||
| Food Products 1.2% | ||
| Archer-Daniels-Midland Co. | 7,041 | 121,105 |
| Campbell Soup Co. | 4,547 | 127,134 |
| ConAgra Foods, Inc. | 5,833 | 158,599 |
| General Mills, Inc. | 4,052 | 186,311 |
| H.J. Heinz Co. | 3,854 | 147,261 |
| Hershey Foods Corp. | 1,371 | 113,656 |
| Kellogg Co. | 4,479 | 176,876 |
| McCormick & Co, Inc. | 1,500 | 46,905 |
| Sara Lee Corp. | 8,605 | 187,761 |
| William Wrigley Jr. Co. | 2,436 | 137,001 |
1,402,609 | ||
| Household Products 1.9% | ||
| Clorox Co. | 2,311 | 113,378 |
| Colgate-Palmolive Co. | 5,890 | 326,600 |
| Kimberly-Clark Corp. | 5,534 | 357,939 |
| Procter & Gamble Co. | 14,076 | 1,442,931 |
2,240,848 | ||
| Personal Products 0.5% | ||
| Alberto-Culver Co. "B" | 923 | 37,896 |
| Avon Products, Inc. | 2,603 | 183,772 |
| Gillette Co. | 11,012 | 423,852 |
645,520 | ||
| Tobacco 1.2% | ||
| Altria Group, Inc. | 22,075 | 1,270,417 |
| R.J. Reynolds Tobacco Holdings, Inc. | 967 | 59,693 |
| UST, Inc. | 1,678 | 63,898 |
1,394,008 | ||
| Energy 5.8% | ||
| Energy Equipment & Services 0.9% | ||
| Baker Hughes, Inc. | 3,660 | 137,689 |
| BJ Services Co.* | 1,800 | 77,922 |
| Halliburton Co. | 4,810 | 153,728 |
| Nabors Industries Ltd.* | 1,603 | 75,902 |
| Noble Corp.* | 1,490 | 60,494 |
| Rowan Companies, Inc. | 986 | 23,171 |
| Schlumberger Ltd. | 6,259 | 403,643 |
| Transocean, Inc.* | 3,609 | 106,393 |
1,038,942 | ||
| Oil & Gas 4.9% | ||
| Amerada Hess Corp. | 1,021 | 65,701 |
| Anadarko Petroleum Corp. | 2,752 | 141,040 |
| Apache Corp. | 3,615 | 148,810 |
| Ashland, Inc. | 715 | 34,256 |
| Burlington Resources, Inc. | 2,201 | 128,847 |
| ChevronTexaco Corp. | 11,661 | 1,030,249 |
| ConocoPhillips | 7,420 | 511,015 |
| Devon Energy Corp. | 2,550 | 144,789 |
| EOG Resources, Inc. | 1,341 | 59,661 |
| ExxonMobil Corp. | 71,935 | 3,033,499 |
| Kerr-McGee Corp. | 1,048 | 54,758 |
| Marathon Oil Corp. | 3,406 | 119,687 |
| Occidental Petroleum Corp. | 3,826 | 169,874 |
| Sunoco, Inc. | 830 | 51,045 |
| Unocal Corp. | 2,789 | 105,982 |
5,799,213 | ||
| Financials 20.8% | ||
| Banks 6.8% | ||
| AmSouth Bancorp. | 3,784 | 95,735 |
| Bank of America Corp. | 16,142 | 1,322,353 |
| Bank One Corp. | 12,202 | 658,664 |
| BB&T Corp. | 5,574 | 207,074 |
| Charter One Financial, Inc. | 2,401 | 86,964 |
| Comerica, Inc. | 1,934 | 111,282 |
| Fifth Third Bancorp. | 6,195 | 347,044 |
| First Tennessee National Corp. | 1,400 | 64,736 |
| FleetBoston Financial Corp. | 11,465 | 516,269 |
| Golden West Financial Corp. | 1,697 | 195,868 |
| Huntington Bancshares, Inc. | 2,482 | 57,409 |
| KeyCorp. | 4,356 | 141,221 |
| M&T Bank Corp. | 1,300 | 124,865 |
| Marshall & Ilsley Corp. | 2,468 | 97,782 |
| National City Corp. | 6,612 | 236,048 |
| North Fork Bancorp., Inc. | 1,700 | 71,791 |
| PNC Financial Services Group | 2,961 | 173,574 |
| Regions Financial Corp. | 2,374 | 87,601 |
| SouthTrust Corp. | 3,638 | 122,237 |
| SunTrust Banks, Inc. | 2,901 | 209,771 |
| Synovus Financial Corp. | 3,373 | 84,494 |
| Union Planters Corp. | 1,930 | 57,861 |
| US Bancorp. | 21,035 | 600,129 |
| Wachovia Corp. | 14,452 | 693,262 |
| Washington Mutual, Inc. | 9,739 | 437,671 |
| Wells Fargo & Co. | 18,469 | 1,059,197 |
| Zions Bancorp. | 1,029 | 59,960 |
7,920,862 | ||
| Capital Markets 3.7% | ||
| Bank of New York Co., Inc. | 8,462 | 279,246 |
| Bear Stearns Companies, Inc. | 1,115 | 97,942 |
| Charles Schwab Corp. | 14,741 | 180,430 |
| Federated Investors, Inc. "B" | 1,200 | 38,724 |
| Franklin Resources, Inc. | 2,736 | 154,584 |
| Goldman Sachs Group, Inc. | 5,200 | 550,524 |
| J.P. Morgan Chase & Co. | 22,248 | 912,613 |
| Janus Capital Group, Inc. | 2,667 | 45,659 |
| Lehman Brothers Holdings, Inc. | 2,930 | 254,060 |
| Mellon Financial Corp. | 4,647 | 150,470 |
| Merrill Lynch & Co., Inc. | 10,259 | 627,953 |
| Morgan Stanley | 11,832 | 707,080 |
| Northern Trust Corp. | 1,956 | 97,116 |
| State Street Corp. | 3,626 | 194,825 |
| T. Rowe Price Group, Inc. | 1,321 | 69,471 |
4,360,697 | ||
| Consumer Finance 1.3% | ||
| American Express Co. | 14,014 | 748,628 |
| Capital One Finance Corp. | 2,560 | 181,043 |
| MBNA Corp. | 13,872 | 379,122 |
| Providian Financial Corp. | 3,185 | 41,182 |
| SLM Corp. | 4,661 | 195,249 |
1,545,224 | ||
| Diversified Financials 3.8% | ||
| Citigroup, Inc. | 56,216 | 2,825,416 |
| Countrywide Financial Corp. | 2,048 | 187,658 |
| Fannie Mae | 10,577 | 792,217 |
| Freddie Mac | 7,546 | 467,249 |
| Moody's Corp. | 1,644 | 109,918 |
| Principal Financial Group, Inc.* | 3,500 | 126,700 |
4,509,158 | ||
| Insurance 4.8% | ||
| ACE Ltd. | 3,100 | 139,376 |
| AFLAC, Inc. | 5,578 | 226,523 |
| Allstate Corp. | 7,355 | 335,609 |
| AMBAC Financial Group, Inc. | 1,211 | 94,700 |
| American International Group, Inc. | 28,416 | 2,102,784 |
| Aon Corp. | 3,242 | 85,038 |
| Chubb Corp. | 2,088 | 148,206 |
| Cincinnati Financial Corp. | 1,762 | 79,360 |
| Hartford Financial Services Group, Inc. | 2,981 | 195,255 |
| Jefferson-Pilot Corp. | 1,499 | 80,107 |
| John Hancock Financial Services, Inc. | 3,127 | 131,772 |
| Lincoln National Corp. | 1,985 | 92,164 |
| Loews Corp. | 1,900 | 114,551 |
| Marsh & McLennan Companies, Inc. | 5,750 | 275,942 |
| MBIA, Inc. | 1,591 | 104,672 |
| MetLife, Inc. | 8,286 | 291,253 |
| MGIC Investment Corp. | 972 | 64,327 |
| Progressive Corp. | 2,274 | 187,969 |
| Prudential Financial, Inc. | 5,900 | 273,701 |
| Safeco Corp. | 1,429 | 64,305 |
| St. Paul Companies, Inc. | 2,480 | 105,995 |
| Torchmark Corp. | 1,239 | 64,577 |
| Travelers Property Casualty Corp. "B"* | 10,924 | 199,254 |
| UnumProvident Corp. | 3,227 | 47,824 |
| XL Capital Ltd. "A" | 1,375 | 105,407 |
5,610,671 | ||
| Real Estate 0.4% | ||
| Apartment Investment & Management Co. (REIT) | 1,021 | 33,080 |
| Equity Office Properties Trust (REIT) | 4,400 | 125,576 |
| Equity Residential (REIT) | 3,000 | 89,250 |
| Plum Creek Timber Co., Inc. (REIT) | 2,000 | 62,420 |
| ProLogis (REIT) | 1,900 | 62,947 |
| Simon Property Group, Inc. (REIT) | 2,100 | 114,429 |
487,702 | ||
| Health Care 13.1% | ||
| Biotechnology 1.2% | ||
| Amgen, Inc.* | 14,001 | 889,483 |
| Biogen Idec, Inc.* | 3,575 | 198,234 |
| Chiron Corp.* | 2,016 | 98,603 |
| Genzyme Corp. (General Division)* | 2,400 | 121,872 |
| MedImmune, Inc.* | 2,664 | 68,438 |
1,376,630 | ||
| Health Care Equipment & Supplies 2.0% | ||
| Applera Corp. - Applied Biosystems Group | 2,219 | 50,593 |
| Bausch & Lomb, Inc. | 582 | 34,565 |
| Baxter International, Inc. | 6,604 | 192,309 |
| Becton, Dickinson and Co. | 2,733 | 132,960 |
| Biomet, Inc. | 2,802 | 109,222 |
| Boston Scientific Corp.* | 8,934 | 364,954 |
| C.R. Bard, Inc. | 564 | 53,236 |
| Guidant Corp. | 3,355 | 228,610 |
| Medtronic, Inc. | 13,244 | 621,144 |
| Millipore Corp. | 542 | 28,374 |
| St. Jude Medical, Inc.* | 1,896 | 137,744 |
| Stryker Corp. | 2,180 | 193,431 |
| Zimmer Holdings, Inc.* | 2,611 | 197,496 |
2,344,638 | ||
| Health Care Providers & Services 1.8% | ||
| Aetna, Inc. | 1,688 | 136,373 |
| AmerisourceBergen Corp. | 1,185 | 68,766 |
| Anthem, Inc.* | 1,547 | 132,965 |
| Cardinal Health, Inc. | 4,696 | 306,320 |
| CIGNA Corp. | 1,516 | 84,032 |
| Express Scripts, Inc. "A"* | 808 | 58,790 |
| HCA, Inc. | 5,369 | 228,290 |
| Health Management Associates, Inc. "A" | 2,600 | 57,954 |
| Humana, Inc.* | 1,709 | 37,461 |
| IMS Health, Inc. | 2,634 | 65,271 |
| Manor Care, Inc. | 930 | 32,931 |
| McKesson Corp. | 3,126 | 85,371 |
| Medco Health Solutions, Inc.* | 2,919 | 95,335 |
| Quest Diagnostics, Inc. | 1,159 | 96,046 |
| Tenet Healthcare Corp.* | 5,055 | 60,761 |
| UnitedHealth Group, Inc. | 6,797 | 421,414 |
| WellPoint Health Networks, Inc.* | 1,634 | 177,730 |
2,145,810 | ||
| Pharmaceuticals 8.1% | ||
| Abbott Laboratories | 17,050 | 729,740 |
| Allergan, Inc. | 1,398 | 122,381 |
| Bristol-Myers Squibb Co. | 21,147 | 588,309 |
| Eli Lilly & Co. | 12,202 | 902,216 |
| Forest Laboratories, Inc.* | 4,008 | 302,524 |
| Johnson & Johnson | 32,295 | 1,741,023 |
| King Pharmaceuticals, Inc.* | 2,656 | 51,181 |
| Merck & Co., Inc. | 24,248 | 1,165,844 |
| Pfizer, Inc. | 82,044 | 3,006,913 |
| Schering-Plough Corp. | 15,731 | 282,529 |
| Watson Pharmaceuticals, Inc.* | 1,117 | 51,293 |
| Wyeth | 14,489 | 572,315 |
9,516,268 | ||
| Industrials 10.5% | ||
| Aerospace & Defense 1.8% | ||
| Boeing Co. | 9,163 | 397,399 |
| General Dynamics Corp. | 2,197 | 202,388 |
| Goodrich Corp. | 1,267 | 37,364 |
| Honeywell International, Inc. | 9,394 | 329,260 |
| Lockheed Martin Corp. | 4,925 | 227,929 |
| Northrop Grumman Corp. | 1,959 | 198,074 |
| Raytheon Co. | 4,528 | 137,651 |
| Rockwell Collins, Inc. | 1,946 | 63,323 |
| United Technologies Corp. | 5,597 | 515,540 |
2,108,928 | ||
| Air Freight & Logistics 1.0% | ||
| FedEx Corp. | 3,276 | 224,996 |
| Ryder System, Inc. | 686 | 25,272 |
| United Parcel Service, Inc. "B" | 12,275 | 866,983 |
1,117,251 | ||
| Airlines 0.1% | ||
| Delta Air Lines, Inc. | 1,303 | 11,701 |
| Southwest Airlines Co. | 8,594 | 118,683 |
130,384 | ||
| Building Products 0.2% | ||
| American Standard Companies, Inc.* | 780 | 84,989 |
| Masco Corp. | 5,013 | 140,564 |
225,553 | ||
| Commercial Services & Supplies 1.0% | ||
| Allied Waste Industries, Inc.* | 3,476 | 43,902 |
| Apollo Group, Inc. "A"* | 1,900 | 144,685 |
| Avery Dennison Corp. | 1,176 | 74,523 |
| Cendant Corp. | 11,022 | 250,199 |
| Cintas Corp. | 1,813 | 77,433 |
| Deluxe Corp. | 515 | 20,281 |
| Equifax Inc | 1,558 | 40,835 |
| H&R Block, Inc. | 1,926 | 104,100 |
| Monster Worldwide, Inc.* | 1,233 | 27,126 |
| Pitney Bowes, Inc. | 2,580 | 106,683 |
| R.R. Donnelley & Sons Co. | 2,376 | 75,461 |
| Robert Half International, Inc.* | 1,825 | 41,008 |
| Waste Management, Inc. | 6,369 | 181,517 |
1,187,753 | ||
| Construction & Engineering 0.0% | ||
| Fluor Corp. | 853 | 35,169 |
| Electrical Equipment 0.4% | ||
| American Power Conversion Corp. | 2,192 | 49,583 |
| Cooper Industries, Inc. "A" | 1,004 | 53,122 |
| Emerson Electric Co. | 4,604 | 287,658 |
| Power-One, Inc.* | 910 | 11,156 |
| Rockwell Automation, Inc. | 2,046 | 62,321 |
| Thomas & Betts Corp.* | 661 | 14,271 |
478,111 | ||
| Industrial Conglomerates 4.2% | ||
| 3M Co. | 8,522 | 664,886 |
| General Electric Co. | 109,361 | 3,556,420 |
| Textron, Inc. | 1,467 | 81,184 |
| Tyco International Ltd. | 21,742 | 621,169 |
4,923,659 | ||
| Machinery 1.3% | ||
| Caterpillar, Inc. | 3,736 | 283,002 |
| Crane Co. | 615 | 19,766 |
| Cummins, Inc. | 464 | 22,922 |
| Danaher Corp. | 1,641 | 147,083 |
| Deere & Co. | 2,638 | 169,439 |
| Dover Corp. | 2,218 | 86,924 |
| Eaton Corp. | 1,732 | 101,391 |
| Illinois Tool Works, Inc. | 3,369 | 267,903 |
| Ingersoll-Rand Co. "A" | 1,882 | 125,115 |
| ITT Industries, Inc. | 1,042 | 78,671 |
| Navistar International Corp.* | 715 | 33,319 |
| PACCAR, Inc. | 1,932 | 107,052 |
| Pall Corp. | 1,407 | 36,821 |
| Parker-Hannifin Corp. | 1,335 | 74,987 |
1,554,395 | ||
| Road & Rail 0.4% | ||
| Burlington Northern Santa Fe Corp. | 4,077 | 131,198 |
| CSX Corp. | 2,332 | 73,528 |
| Norfolk Southern Corp. | 4,349 | 96,374 |
| Union Pacific Corp. | 2,795 | 177,873 |
478,973 | ||
| Trading Companies & Distributors 0.1% | ||
| W.W. Grainger, Inc. | 1,026 | 48,479 |
| Information Technology 16.9% | ||
| Communications Equipment 3.0% | ||
| ADC Telecommunications, Inc.* | 8,063 | 24,189 |
| Andrew Corp.* | 1,700 | 30,294 |
| Avaya, Inc.* | 4,521 | 77,535 |
| CIENA Corp.* | 5,200 | 29,796 |
| Cisco Systems, Inc.* | 75,174 | 1,736,520 |
| Comverse Technologies, Inc.* | 2,123 | 41,866 |
| Corning, Inc.* | 14,453 | 181,385 |
| JDS Uniphase Corp.* | 14,189 | 69,526 |
| Lucent Technologies, Inc.* | 44,748 | 187,494 |
| Motorola, Inc. | 25,314 | 467,043 |
| QLogic Corp.* | 1,066 | 44,559 |
| QUALCOMM, Inc. | 8,720 | 553,284 |
| Scientific-Atlanta, Inc. | 1,674 | 55,409 |
| Tellabs, Inc.* | 4,543 | 44,067 |
3,542,967 | ||
| Computers & Peripherals 3.7% | ||
| Apple Computer, Inc.* | 3,907 | 93,495 |
| Dell, Inc.* | 27,847 | 909,205 |
| EMC Corp.* | 26,177 | 374,855 |
| Gateway, Inc.* | 3,196 | 17,354 |
| Hewlett-Packard Co. | 33,176 | 753,427 |
| International Business Machines Corp. | 18,771 | 1,811,402 |
| Lexmark International, Inc.* | 1,429 | 117,592 |
| NCR Corp.* | 1,003 | 44,894 |
| Network Appliance, Inc.* | 3,708 | 80,315 |
| Sun Microsystems, Inc.* | 35,621 | 190,216 |
4,392,755 | ||
| Electronic Equipment & Instruments 0.5% | ||
| Agilent Technologies, Inc.* | 5,150 | 176,078 |
| Jabil Circuit, Inc.* | 2,176 | 60,884 |
| Molex, Inc. | 2,060 | 65,261 |
| PerkinElmer, Inc. | 1,390 | 28,968 |
| Sanmina-SCI Corp.* | 5,650 | 71,698 |
| Solectron Corp.* | 9,068 | 57,945 |
| Symbol Technologies, Inc. | 2,501 | 42,567 |
| Tektronix, Inc. | 970 | 31,089 |
| Thermo Electron Corp.* | 1,724 | 48,393 |
| Waters Corp.* | 1,347 | 49,758 |
632,641 | ||
| Internet Software & Services 0.3% | ||
| Yahoo!, Inc.* | 7,143 | 317,149 |
| IT Consulting & Services 1.1% | ||
| Automatic Data Processing, Inc. | 6,436 | 273,208 |
| Computer Sciences Corp.* | 1,992 | 83,246 |
| Convergys Corp.* | 1,513 | 24,601 |
| Electronic Data Systems Corp. | 5,241 | 100,365 |
| First Data Corp. | 9,753 | 399,667 |
| Fiserv, Inc.* | 2,158 | 83,321 |
| Paychex, Inc. | 4,153 | 133,602 |
| Sabre Holdings Corp. | 1,413 | 32,061 |
| SunGard Data Systems, Inc.* | 3,100 | 90,117 |
| Unisys Corp.* | 3,623 | 51,193 |
1,271,381 | ||
| Office Electronics 0.1% | ||
| Xerox Corp.* | 8,606 | 121,689 |
| Semiconductors & Semiconductor Equipment 3.9% | ||
| Advanced Micro Devices, Inc.* | 3,791 | 56,865 |
| Altera Corp.* | 4,087 | 90,241 |
| Analog Devices, Inc.* | 3,986 | 198,902 |
| Applied Materials, Inc.* | 18,120 | 384,869 |
| Applied Micro Circuits Corp.* | 3,318 | 21,434 |
| Broadcom Corp. "A"* | 3,278 | 133,021 |
| Intel Corp. | 71,126 | 2,079,013 |
| KLA-Tencor Corp.* | 2,092 | 110,458 |
| Linear Technology Corp. | 3,388 | 135,486 |
| LSI Logic Corp.* | 4,111 | 41,521 |
| Maxim Integrated Products, Inc. | 3,588 | 179,077 |
| Micron Technology, Inc.* | 6,634 | 99,775 |
| National Semiconductor Corp.* | 2,037 | 80,176 |
| Novellus Systems, Inc.* | 1,695 | 54,494 |
| NVIDIA Corp.* | 1,795 | 39,939 |
| PMC-Sierra, Inc.* | 1,919 | 38,188 |
| Teradyne, Inc.* | 2,086 | 51,420 |
| Texas Instruments, Inc. | 18,855 | 577,906 |
| Xilinx, Inc.* | 3,731 | 156,851 |
4,529,636 | ||
| Software 4.3% | ||
| Adobe Systems, Inc. | 2,598 | 96,750 |
| Autodesk, Inc. | 1,196 | 34,265 |
| BMC Software, Inc.* | 2,464 | 48,294 |
| Citrix Systems, Inc.* | 1,769 | 37,467 |
| Computer Associates International, Inc. | 6,338 | 168,337 |
| Compuware Corp.* | 3,968 | 31,109 |
| Electronic Arts, Inc.* | 3,200 | 150,912 |
| Intuit, Inc.* | 2,205 | 97,814 |
| Mercury Interactive Corp.* | 989 | 48,006 |
| Microsoft Corp. | 117,764 | 3,120,746 |
| Novell, Inc.* | 4,045 | 41,178 |
| Oracle Corp.* | 55,669 | 717,017 |
| Parametric Technology Corp.* | 2,078 | 9,476 |
| PeopleSoft, Inc.* | 4,097 | 88,413 |
| Siebel Systems, Inc.* | 5,075 | 66,280 |
| Symantec Corp.* | 3,200 | 131,648 |
| VERITAS Software Corp.* | 4,545 | 138,259 |
5,025,971 | ||
| Materials 2.9% | ||
| Chemicals 1.5% | ||
| Air Products & Chemicals, Inc. | 2,500 | 120,600 |
| Dow Chemical Co. | 10,034 | 436,178 |
| E.I. du Pont de Nemours & Co. | 10,858 | 489,587 |
| Eastman Chemical Co. | 809 | 34,261 |
| Ecolab, Inc. | 2,858 | 78,052 |
| Engelhard Corp. | 1,346 | 39,061 |
| Great Lakes Chemical Corp. | 515 | 13,081 |
| Hercules, Inc. | 1,200 | 14,280 |
| International Flavors & Fragrances, Inc. | 1,030 | 37,688 |
| Monsanto Co. | 2,823 | 93,272 |
| PPG Industries, Inc. | 1,828 | 107,285 |
| Praxair, Inc. | 3,512 | 127,556 |
| Rohm & Haas Co. | 2,386 | 94,843 |
| Sigma-Aldrich Corp. | 792 | 45,279 |
1,731,023 | ||
| Construction Materials 0.0% | ||
| Eagle Material's, Inc. | 1 | 73 |
| Vulcan Materials Co. | 1,121 | 53,023 |
53,096 | ||
| Containers & Packaging 0.2% | ||
| Ball Corp. | 600 | 38,742 |
| Bemis Co., Inc. | 615 | 31,414 |
| Pactiv Corp.* | 1,646 | 35,373 |
| Sealed Air Corp.* | 910 | 45,363 |
| Temple-Inland, Inc. | 567 | 36,940 |
187,832 | ||
| Metals & Mining 0.7% | ||
| Alcoa, Inc. | 9,439 | 353,679 |
| Allegheny Technologies, Inc. | 915 | 11,621 |
| Freeport-McMoRan Copper & Gold, Inc. "B" | 1,996 | 85,129 |
| Newmont Mining Corp. | 4,692 | 203,867 |
| Nucor Corp. | 833 | 52,396 |
| Phelps Dodge Corp.* | 980 | 84,535 |
| United States Steel Corp. | 1,114 | 40,940 |
| Worthington Industries, Inc. | 900 | 15,597 |
847,764 | ||
| Paper & Forest Products 0.5% | ||
| Georgia-Pacific Corp. | 2,778 | 89,035 |
| International Paper Co. | 5,220 | 231,037 |
| Louisiana-Pacific Corp. | 1,115 | 27,574 |
| MeadWestvaco Corp. | 2,229 | 65,310 |
| Weyerhaeuser Co. | 2,406 | 156,991 |
569,947 | ||
| Telecommunication Services 3.4% | ||
| Diversified Telecommunication Services 2.7% | ||
| ALLTEL Corp. | 3,417 | 177,001 |
| AT&T Corp. | 8,542 | 171,096 |
| BellSouth Corp. | 20,110 | 554,231 |
| CenturyTel, Inc. | 1,553 | 44,369 |
| Citizens Communications Co.* | 3,100 | 40,858 |
| Qwest Communications International, Inc.* | 19,081 | 87,391 |
| SBC Communications, Inc. | 35,116 | 843,135 |
| Sprint Corp. (FON Group) | 9,725 | 172,424 |
| Verizon Communications, Inc. | 30,102 | 1,153,810 |
3,244,315 | ||
| Wireless Telecommunication Services 0.7% | ||
| AT&T Wireless Services, Inc.* | 29,599 | 401,954 |
| Nextel Communications, Inc. "A"* | 11,954 | 316,662 |
| Sprint Corp. (PCS Group)* | 11,235 | 101,115 |
819,731 | ||
| Utilities 2.8% | ||
| Electric Utilities 2.0% | ||
| Allegheny Energy, Inc. | 1,427 | 18,822 |
| Ameren Corp. | 1,764 | 83,614 |
| American Electric Power Co. | 4,364 | 150,558 |
| CenterPoint Energy, Inc. | 3,307 | 34,591 |
| CINergy Corp. | 1,988 | 77,910 |
| CMS Energy Corp. | 1,762 | 16,210 |
| Consolidated Edison, Inc. | 2,460 | 108,658 |
| Dominion Resources, Inc. | 3,554 | 223,298 |
| DTE Energy Co. | 1,906 | 77,117 |
| Edison International | 3,649 | 84,255 |
| Entergy Corp. | 2,458 | 145,735 |
| Exelon Corp. | 3,568 | 239,556 |
| FirstEnergy Corp. | 3,550 | 137,137 |
| FPL Group, Inc. | 2,005 | 131,628 |
| PG&E Corp.* | 4,536 | 127,779 |
| Pinnacle West Capital Corp. | 1,000 | 39,090 |
| PPL Corp. | 1,891 | 87,988 |
| Progress Energy, Inc. | 2,695 | 124,401 |
| Southern Co. | 7,542 | 228,673 |
| TECO Energy, Inc. | 1,979 | 29,824 |
| TXU Corp. | 3,486 | 98,061 |
| Xcel Energy, Inc. | 4,386 | 76,623 |
2,341,528 | ||
| Gas Utilities 0.3% | ||
| KeySpan Corp. | 1,707 | 64,866 |
| Kinder Morgan, Inc. | 1,347 | 83,123 |
| NICOR, Inc. | 515 | 18,612 |
| NiSource, Inc. | 2,839 | 61,635 |
| Peoples Energy Corp. | 400 | 17,837 |
| Sempra Energy | 2,459 | 77,950 |
324,023 | ||
| Multi-Utilities & Unregulated Power 0.5% | ||
| AES Corp.* | 6,751 | 61,164 |
| Calpine Corp.* | 4,480 | 24,685 |
| Constellation Energy Group, Inc. | 1,935 | 76,916 |
| Duke Energy Corp. | 9,869 | 216,723 |
| Dynegy, Inc. "A" | 3,727 | 15,244 |
| El Paso Corp. | 6,073 | 45,183 |
| Public Service Enterprise Group, Inc. | 2,604 | 122,753 |
| Williams Companies, Inc. | 5,149 | 48,761 |
611,429 | ||
| Total Common Stocks (Cost $107,698,339) | 115,301,322 | |
Principal | Value ($) | |
US Government Backed 0.2% | ||
| US Treasury Bill, 0.94%**, 4/22/2004 (b) (Cost $289,640) | 290,000 | 289,614 |
Shares | Value ($) | |
Cash Equivalents 1.7% | ||
| Scudder Cash Management QP Trust, 1.12% (c) (Cost $1,960,490) | 1,960,490 | 1,960,490 |
| Total Investment Portfolio - 100.0% (Cost $109,948,469) (a) | 117,551,426 | |
* Non-income producing security.
** Annualized yield at time of purchase; not a coupon rate.
(a) The cost for federal income tax purposes was $116,421,694. At February 29, 2004, net unrealized appreciation for all securities based on tax cost was $1,129,732. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $9,388,744 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $8,259,012.
(b) At February 29, 2004, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts.
(c) Scudder Cash Management QP Trust is also managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.
At February 29, 2004, open futures contracts purchased were as follows:
Futures | Expiration Date | Contracts | Aggregate Face Value ($) | Value ($) | Unrealized Appreciation (Depreciation)($) |
| S&P 500 Index | 3/18/2004 | 8 | 2,252,398 | 2,289,200 | 36,802 |
The accompanying notes are an integral part of the financial statements.
Statement of Assets and Liabilities as of February 29, 2004 (Unaudited) | |
| Assets | |
| Investments: Investments in securities, at value (cost $107,987,979) | $ 115,590,936 |
| Investment in Scudder Cash Management QP Trust (cost $1,960,490) | 1,960,490 |
| Total investments in securities, at value (cost $109,948,469) | 117,551,426 |
| Cash | 11,465 |
| Receivable for daily variation margin on open futures contracts | 2,800 |
| Receivable for investments sold | 2,858 |
| Dividends receivable | 188,503 |
| Receivable for Fund shares sold | 58,021 |
| Interest receivable | 1,096 |
| Other assets | 9,099 |
| Total assets | $ 117,825,268 |
| Liabilities | |
| Payable for investments purchased | 163,802 |
| Accrued management fee | 33,051 |
| Other accrued expenses and payables | 67,364 |
| Total liabilities | 264,217 |
| Net assets, at value | $ 117,561,051 |
| Net Assets | |
| Net assets consist of: Undistributed net investment income | 208,054 |
| Net unrealized appreciation (depreciation) on: Investments | 7,602,957 |
| Futures | 36,802 |
| Accumulated net realized gain (loss) | (15,118,219) |
| Paid-in capital | 124,831,457 |
| Net assets, at value | $ 117,561,051 |
The accompanying notes are an integral part of the financial statements.
Statement of Assets and Liabilities as of February 29, 2004 (Unaudited) (continued) | |
| Net Asset Value | |
| Class A Net Asset Value and redemption price per share ($86,938,588 / 12,097,663 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 7.19 |
| Maximum offering price per share (100 / 95.50 of $7.19) | $ 7.53 |
| Class B Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share ($17,031,117 / 2,394,720 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 7.11 |
| Class C Net Asset Value and redemption price (subject to contingent deferred sales charge) per share ($13,591,346 / 1,911,676 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 7.11 |
| Maximum offering price per share (100 / 99.00 of $7.11) | $ 7.18 |
The accompanying notes are an integral part of the financial statements.
Statement of Operations for the six months ended February 29, 2004 (Unaudited) | |
| Investment Income | |
| Income: Dividends | $ 913,027 |
| Interest - Scudder Cash Management QP Trust | 8,280 |
| Interest | 887 |
| Total Income | 922,194 |
| Expenses: Management fee | 171,154 |
| Administrative fee | 28,900 |
| Distribution service fees | 233,269 |
| Custodian and accounting fees | 51,448 |
| Services to shareholders | 166,420 |
| Auditing | 16,747 |
| Legal | 2,267 |
| Trustees' fees and expenses | 31,864 |
| Reports to shareholders | 11,564 |
| Registration fees | 17,830 |
| Other | 280 |
| Total expenses before expense reductions | 731,743 |
| Expense reductions | (271,181) |
| Total expenses, after expense reductions | 460,562 |
| Net investment income (loss) | 461,632 |
| Realized and Unrealized Gain (Loss) on Investment Transactions | |
| Net realized gain (loss) from: Investments | (1,375,954) |
| Futures | 204,229 |
| (1,171,725) | |
| Net unrealized appreciation (depreciation) during the period on: Investments | 14,413,664 |
| Futures | 5,219 |
| 14,418,883 | |
| Net gain (loss) on investment transactions | 13,247,158 |
| Net increase (decrease) in net assets resulting from operations | $ 13,708,790 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets | ||
Six Months Ended February 29, 2004 (Unaudited) | Year Ended August 31, 2003 | |
| Increase (Decrease) in Net Assets | ||
| Operations: Net investment income | $ 461,632 | $ 527,542 |
| Net realized gain (loss) on investment transactions | (1,171,725) | (6,166,943) |
| Net unrealized appreciation (depreciation) on investment transactions during the period | 14,418,883 | 14,603,794 |
| Net increase (decrease) in net assets resulting from operations | 13,708,790 | 8,964,393 |
| Distributions to shareholders from: Net investment income: Class A | (571,559) | (331,565) |
| Class C | (20,834) | - |
| Fund share transactions: Proceeds from shares sold | 39,257,438 | 56,890,636 |
| Reinvestment of distributions | 591,465 | 330,928 |
| Cost of shares redeemed | (30,768,739) | (42,182,800) |
| Net increase (decrease) in net assets from Fund share transactions | 9,080,164 | 15,038,764 |
| Increase (decrease) in net assets | 22,196,561 | 23,671,592 |
| Net assets at beginning of period | 95,364,490 | 71,692,898 |
| Net assets at end of period (including undistributed net investment income of $208,054 and $338,815, respectively) | $ 117,561,051 | $ 95,364,490 |
The accompanying notes are an integral part of the financial statements.
Class A | |||||
Years Ended August 31, | 2004a | 2003 | 2002 | 2001 | 2000b |
| Selected Per Share Data | |||||
| Net asset value, beginning of period | $ 6.34 | $ 5.75 | $ 7.10 | $ 9.59 | $ 9.50 |
| Income from investment operations: Net investment incomec | .04 | .05 | .03 | .03 | .03 |
| Net realized and unrealized gain (loss) | .86 | .57 | (1.37) | (2.46) | .06 |
Total from investment operations | .90 | .62 | (1.34) | (2.43) | .09 |
| Less distribution from: Net investment income | (.05) | (.03) | (.01) | (.04) | - |
| Net realized gains on investment transactions | - | - | - | (.02) | - |
Total distributions | (.05) | (.03) | (.01) | (.06) | - |
| Net asset value, end of period | $ 7.19 | $ 6.34 | $ 5.75 | $ 7.10 | $ 9.59 |
| Total Return (%)d | 14.24e** | 10.93 | (18.87) | (25.46)e | .95e** |
| Ratios to Average Net Assets and Supplemental Data | |||||
| Net assets, end of period ($ in millions) | 87 | 69 | 51 | 45 | 22 |
| Ratio of expenses before expense reductions (%) | 1.17* | .92 | 1.00 | 1.62f | 3.19* |
| Ratio of expenses after expense reductions (%) | .69* | .92 | 1.00 | 1.03f | 1.00* |
| Ratio of net investment income (loss) (%) | 1.08* | .89 | .48 | .41 | .90* |
| Portfolio turnover rate (%) | 8* | 11 | 12 | 8 | 43* |
| a For the six months ended February 29, 2004 (Unaudited). b For the period from April 3, 2000 (commencement of operations) to August 31, 2000. c Based on average shares outstanding during the period. d Total return does not reflect the effect of any sales charge. e Total return would have been lower had certain expenses not been reduced. f The ratios of operating expenses excluding costs incurred in connection with a fund complex reorganization before and after expense reductions were 1.61% and 1.02%, respectively. * Annualized ** Not annualized | |||||
Class B | |||||
Years Ended August 31, | 2004a | 2003 | 2002 | 2001 | 2000b |
| Selected Per Share Data | |||||
| Net asset value, beginning of period | $ 6.25 | $ 5.68 | $ 7.06 | $ 9.57 | $ 9.50 |
| Income from investment operations: Net investment income (loss)c | .01 | .01 | (.02) | (.03) | .00 |
| Net realized and unrealized gain (loss) | .85 | .56 | (1.36) | (2.46) | .07 |
Total from investment operations | .86 | .57 | (1.38) | (2.49) | .07 |
| Less distribution from: Net realized gains on investment transactions | - | - | - | (.02) | - |
| Net asset value, end of period | $ 7.11 | $ 6.25 | $ 5.68 | $ 7.06 | $ 9.57 |
| Total Return (%)d | 13.76e** | 10.04 | (19.55) | (26.04)e | .74e** |
| Ratios to Average Net Assets and Supplemental Data | |||||
| Net assets, end of period ($ in millions) | 17 | 14 | 13 | 14 | 3 |
| Ratio of expenses before expense reductions (%) | 2.10* | 1.72 | 1.80 | 2.64f | 4.18* |
| Ratio of expenses after expense reductions (%) | 1.44* | 1.72 | 1.80 | 1.81f | 1.75* |
| Ratio of net investment income (loss) (%) | .33* | .09 | (.32) | (.38) | .09* |
| Portfolio turnover rate (%) | 8* | 11 | 12 | 8 | 43* |
| a For the six months ended February 29, 2004 (Unaudited). b For the period from April 3, 2000 (commencement of operations) to August 31, 2000. c Based on average shares outstanding during the period. d Total return does not reflect the effect of any sales charge. e Total return would have been lower had certain expenses not been reduced. f The ratios of operating expenses excluding costs incurred in connection with a fund complex reorganization before and after expense reductions were 2.64% and 1.80%, respectively. * Annualized ** Not annualized | |||||
Class C | |||||
Years Ended August 31, | 2004a | 2003 | 2002 | 2001 | 2000b |
| Selected Per Share Data | |||||
| Net asset value, beginning of period | $ 6.26 | $ 5.68 | $ 7.06 | $ 9.57 | $ 9.50 |
| Income from investment operations: Net investment income (loss)c | .01 | .01 | (.02) | (.03) | .00 |
| Net realized and unrealized gain (loss) | .85 | .57 | (1.36) | (2.46) | .07 |
Total from investment operations | .86 | .58 | (1.38) | (2.49) | .07 |
| Less distribution from: Net investment income | (.01) | - | - | - | - |
| Net realized gains on investment transactions | - | - | - | (.02) | - |
| Net asset value, end of period | $ 7.11 | $ 6.26 | $ 5.68 | $ 7.06 | $ 9.57 |
| Total Return (%)d | 13.76e** | 10.21 | (19.55) | (26.04)e | .74e** |
| Ratios to Average Net Assets and Supplemental Data | |||||
| Net assets, end of period ($ in millions) | 14 | 12 | 8 | 5 | 2 |
| Ratio of expenses before expense reductions (%) | 2.01* | 1.69 | 1.77 | 2.67f | 4.13* |
| Ratio of expenses after expense reductions (%) | 1.43* | 1.69 | 1.77 | 1.80f | 1.75* |
| Ratio of net investment income (loss) (%) | .34* | .12 | (.29) | (.36) | .09* |
| Portfolio turnover rate (%) | 8* | 11 | 12 | 8 | 43* |
| a For the six months ended February 29, 2004 (Unaudited). b For the period from April 3, 2000 (commencement of operations) to August 31, 2000. c Based on average shares outstanding during the period. d Total return does not reflect the effect of any sales charge. e Total return would have been lower had certain expenses not been reduced. f The ratios of operating expenses excluding costs incurred in connection with a fund complex reorganization before and after expense reductions were 2.66% and 1.79%, respectively. * Annualized ** Not annualized | |||||
A. Significant Accounting Policies
Scudder S&P 500 Stock Fund (the "Fund") is a diversified series of Scudder Investors 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 subject to an initial sales charge and 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. Effective March 1, 2004, Class C shares will no longer be offered with an initial sales charge. Class C shares do not convert into another class.
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 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.
At August 31, 2003, the Fund had a net tax basis capital loss carryforward of approximately $4,116,000 which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until August 31, 2009 ($228,000), August 31, 2010 ($638,000), and August 31, 2011 ($3,250,000) the expiration dates, whichever occurs first. In addition, from November 1, 2002 through August 31, 2003, the Fund incurred approximately $3,326,000 of net realized capital losses. As permitted by tax regulations, the Fund intends to elect to defer these losses and treat them as arising in the fiscal year ended August 31, 2004.
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 securities sold at a loss and investments in futures contracts. 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 value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is recorded on the accrual basis. 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 February 29, 2004, purchases and sales of investment securities (excluding short-term instruments) aggregated $11,964,401 and $4,002,414, 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 Agreement was equal to an annual rate of 0.33% of the first $100,000,000 of the Fund's average daily net assets, 0.29% of the next $100,000,000 of such net assets and 0.27% of such net assets in excess of $200,000,000, computed and accrued daily and payable monthly. Accordingly, for the six months ended February 29, 2004, the fee pursuant to the Management Agreement was equivalent to an annualized effective rate of 0.33% of the Fund's average daily net assets.
Northern Trust Investments, N.A. ("NTI"), an indirect subsidiary of Northern Trust Corporation, serves as sub-advisor to the Fund and is paid by the Advisor for its services.
Administrative Fee. Under the Administrative Agreement (the "Administrative Agreement"), the Advisor provided or paid 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 0.35%, 0.40% and 0.375% of the average daily net assets for Class A, B and C shares, respectively, computed and accrued daily and payable monthly.
The Administrative Agreement between the Advisor and the Fund terminated effective September 30, 2003 and the Fund directly bears the cost of those expenses formerly covered under the Administrative Agreement.
Effective October 1, 2003 through September 30, 2005, the Advisor has contractually agreed to waive all or a portion of its management fee and reimburse or pay certain operating expenses of the Fund to the extent necessary to maintain the operating expenses of each class at 0.75%, 0.80% and 0.80% of average daily net assets for Class A, B and C shares, respectively (excluding certain expenses such as Rule 12b-1 and/or service fees, trustee and trustee counsel fees, extraordinary expenses, taxes, brokerage and interest).
In addition to the contractual expense limitation described above, from October 1, 2003 through February 29, 2004, the Fund's Advisor, accounting agent, principal underwriter and administrator, and transfer agent have each contractually agreed to limit their respective fees or reimburse expenses to the extent necessary to maintain the Fund's total operating expenses at 0.66%, 1.41% and 1.41% of the average daily net assets for Class A, B and C shares, respectively (excluding certain expenses such as extraordinary expenses, taxes, brokerage, interest and transaction costs).
For the period from September 1, 2003 to September 30, 2003, the Administrative Fee was as follows:
Administrative Fee | Total Aggregated |
| Class A | $ 20,387 |
| Class B | 4,720 |
| Class C | 3,793 |
$ 28,900 |
Service Provider Fees.
Scudder Investments Service Company ("SISC"), an affiliate of the Advisor, is the Fund's transfer, dividend-paying agent and shareholder service agent. 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. The costs and expenses of such delegation are borne by SISC, not by the Fund. For the period October 1, 2003 through February 29, 2004, the amount charged to the Fund by SISC was as follows:
Service Provider Fee | Total Aggregated | Not Imposed |
| Class A | $ 108,384 | $ 108,384 |
| Class B | 34,209 | 34,209 |
| Class C | 23,358 | 23,358 |
$ 165,951 | $ 165,951 |
Prior to September 30, 2003, the fees outlined above were paid by the Advisor in accordance with the Administrative Agreement.
Accounting Fees. Scudder Fund Accounting Corporation ("SFAC"), an affiliate of the Advisor, is responsible for computing the daily net asset value per share and maintaining the portfolio and general accounting records of the Fund. SFAC has retained State Street Bank and Trust Company to provide certain administrative, fund accounting and record-keeping services to the Fund. The amount charged to the Fund by SFAC for accounting services aggregated $49,081, all of which was unpaid at February 29, 2004.
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 February 29, 2004, the Distribution Fee was as follows:
Distribution Fee | Total Aggregated | Unpaid at February 29, 2004 |
| Class B | $ 55,980 | $ 9,662 |
| Class C | 46,584 | 7,929 |
$ 102,564 | $ 17,591 |
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 February 29, 2004, the Service Fee was as follows:
Service Fee | Total Aggregated | Not Imposed | Effective Rate |
| Class A | $ 96,819 | $ 77,664 | .05 |
| Class B | 18,646 | 15,045 | .05 |
| Class C | 15,240 | 12,513 | .04 |
$ 130,705 | $ 105,222 |
Underwriting Agreement and Contingent Deferred Sales Charge. SDI is the principal underwriter for the Fund. Underwriting commissions paid in connection with the distribution of Class A and C shares for the six months ended February 29, 2004 aggregated $3,139 and $70, respectively.
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 February 29, 2004 the CDSC for Class B and C shares aggregated $20,200 and $33, respectively. A deferred sales charge of up to 1% is assessed on certain redemptions of Class A shares. For the six months ended February 29, 2004, SDI received $1,094.
Trustees' Fees and Expenses. The Trust 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 Scudder Investments, Inc. 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.
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 ended February 29, 2004, the custodian fee was reduced by $8 for custodian credits 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 | 3,932,241 | $ 26,731,308 | 7,037,294 | $ 40,177,197 |
| Class B | 1,298,687 | 8,671,556 | 1,863,607 | 10,593,527 |
| Class C | 571,540 | 3,854,574 | 1,081,710 | 6,119,912 |
$ 39,257,438 | $ 56,890,636 | |||
| Shares issued in reinvestment of dividends | ||||
| Class A | 83,689 | $ 570,758 | 59,095 | $ 330,928 |
| Class C | 3,063 | 20,707 | - | - |
$ 591,465 | $ 330,928 | |||
| Shares redeemed | ||||
| Class A | (2,870,910) | $ (19,443,459) | (5,011,984) | $ (28,491,274) |
| Class B | (1,122,048) | (7,435,318) | (1,973,680) | (11,006,249) |
| Class C | (586,900) | (3,889,962) | (479,136) | (2,685,277) |
$ (30,768,739) | $ (42,182,800) | |||
| Net increase (decrease) | ||||
| Class A | 1,145,020 | $ 7,858,607 | 2,084,405 | $ 12,016,851 |
| Class B | 176,639 | 1,236,238 | (110,073) | (412,722) |
| Class C | (12,297) | (14,681) | 602,574 | 3,434,635 |
$ 9,080,164 | $ 15,038,764 | |||
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 | KSAAX | KSABX | KSACX |
CUSIP Number | 811166-701 | 811166-800 | 811166-883 |
Fund Number | 155 | 255 | 355 |
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.
Questions on this policy may be sent to:
Scudder Investments
Attention: Correspondence - Chicago
P.O. Box 219415
Kansas City, MO 64121-9415
August 2003
Notes |
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 primary function of the Nominating and Governance Committee is to identify
and recommend individuals for membership on the Board and oversee the
administration of the Board Governance Procedures and Guidelines. Shareholders
may recommend candidates for Board positions by forwarding their correspondence
by U.S. mail or courier service to the Fund's Secretary for the attention of the
Chairman of the Nominating and Governance Committee, Two International Place,
Boston, MA 02110. Suggestions for candidates must include a resume of the
candidate.
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.
During the filing period of the report, fund management 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 S&P 500 Stock Fund
By: /s/Richard T. Hale
---------------------------
Richard T. Hale
Chief Executive Officer
Date: April 30, 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 S&P 500 Stock Fund
By: /s/Richard T. Hale
---------------------------
Richard T. Hale
Chief Executive Officer
Date: April 30, 2004
---------------------------
By: /s/Charles A. Rizzo
---------------------------
Charles A. Rizzo
Chief Financial Officer
Date: April 30, 2004
---------------------------