UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number 811-2899
SCUDDER TARGET FUND
----------------------
(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: 7/31
Date of reporting period: 1/31/2004
ITEM 1. REPORT TO STOCKHOLDERS
[Scudder Investments logo]
Scudder Retirement Fund Series V, VI and VII
|
| |
| Semiannual Report to Shareholders |
| January 31, 2004 |
This report must be preceded by a prospectus. The prospectus contains the funds' objectives, risks, charges and expenses, and other information about the funds.
Investments in mutual funds involve risk. Some funds have more risk than others. Because the funds provide investment protection only on the maturity date to investors who reinvest all dividends and do not redeem their shares before the maturity date, the principal value of the funds is subject to market fluctuation prior to and after the maturity date. The funds are subject to stock market risk, meaning stocks in the funds may decline in value for extended periods of time due to the activities and financial prospects of individual companies, or due to general market and economic conditions. Additionally, the funds invest in individual bonds whose yields and market values fluctuate so that your investment may be worth more or less than its original cost. Please read the funds' prospectus for specific details regarding investments and risk profile. The funds are closed to new investors. Please refer to the prospectus for more details.
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.
Performance Summary January 31, 2004 |
|
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 the Scudder Retirement Fund Series is 5.0%. Unadjusted returns do not reflect sales charges and would have been lower if they had.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns and rankings may differ by share class.
Average Annual Total Returns (Unadjusted for Sales Charge) as of 1/31/04 |
Scudder Retirement Fund | 6-Month++ | 1-Year | 3-Year | 5-Year | 10-Year | Life of Fund VI | Life of Fund VII |
Series V
| 5.81% | 12.37% | -.49% | 1.63% | 6.59% | - | - |
Series VIa
| 5.05% | 10.55% | 1.41% | 2.68% | - | 7.62% | - |
Series VIIb
| 4.90% | 8.35% | 3.32% | 3.54% | - | - | 6.83% |
S&P 500 Index+
| 15.23%
| 34.57%
| -4.58%
| -1.02%
| 10.90%
| 10.86%
| 5.95%
|
Lehman Brothers Government Bond Index++
| 3.88%
| 3.46%
| 6.90%
| 6.31%
| 6.67%
| 7.10%
| 7.51%
|
Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.
++ Total returns shown for periods less than one year are not annualized.a The Fund commenced operations on May 1, 1995. Index returns begin May 31, 1995.b The Fund commenced operations on May 1, 1997. Index returns begin May 31, 1997.Net Asset Value and Distribution Information |
| Series V | Series VI | Series VII |
Net Asset Value:
1/31/04
| $ 8.01 | $ 9.97 | $ 11.10 |
7/31/03
| $ 7.88 | $ 9.86 | $ 10.98 |
Distribution Information:
Six Months:
Income Dividends as of 1/31/04
| $ .32 | $ .38 | $ .41 |
Lipper Rankings - Balanced Target Maturity Funds Category as of 1/31/04 |
Period | Rank | | Number of Funds Tracked | Percentile Ranking |
Series V
1-Year
| 10 | of | 50 | 20 |
3-Year
| 18 | of | 19 | 90 |
5-Year
| 8 | of | 9 | 80 |
10-Year
| 4 | of | 5 | 67 |
Series VI
1-Year
| 14 | of | 50 | 28 |
3-Year
| 9 | of | 19 | 45 |
5-Year
| 5 | of | 9 | 50 |
Series VII
1-Year
| 16 | of | 50 | 32 |
3-Year
| 2 | of | 19 | 10 |
5-Year
| 4 | of | 9 | 40 |
Source: Lipper Inc. Rankings are historical and do not guarantee future results. Rankings are based on total return unadjusted for sales charges with distributions reinvested. If sales charges had been included, rankings might have been less favorable.
Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge) |
[] Scudder Retirement Fund - Series V [] S&P 500 Index+
[] Lehman Brothers Government Bond Index++
|
 |
Yearly periods ended January 31 |
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.0%. This results in a net initial investment of $9,500.
Comparative Results (Adjusted for Maximum Sales Charge) as of 1/31/04 |
Scudder Retirement Fund | 1-Year | 3-Year | 5-Year | 10-Year |
Series V | Growth of $10,000
| $10,675 | $9,360 | $10,302 | $17,987 |
Average annual total return
| 6.75% | -2.18% | .60% | 6.05% |
S&P 500 Index+
| Growth of $10,000
| $13,457 | $8,687 | $9,499 | $28,131 |
Average annual total return
| 34.57% | -4.58% | -1.02% | 10.90% |
Lehman Brothers Government Bond Index++
| Growth of $10,000
| $10,346 | $12,216 | $13,582 | $19,065 |
Average annual total return
| 3.46% | 6.90% | 6.31% | 6.67% |
The growth of $10,000 is cumulative.
+ 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.++ The Lehman Brothers Government Bond Index is a market value weighted index of US Treasury and government agency securities (other than mortgage securities) with maturities of one year or more.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.Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge) |
[] Scudder Retirement Fund - Series VI [] S&P 500 Index+
[] Lehman Brothers Government Bond Index++
|
 |
Yearly periods ended January 31 |
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.0%. This results in a net initial investment of $9,500.
Comparative Results (Adjusted for Maximum Sales Charge) as of 1/31/04 |
Scudder Retirement Fund | 1-Year | 3-Year | 5-Year | Life of Fund(a) |
Series VI | Growth of $10,000
| $10,502 | $9,908 | $10,843 | $18,061 |
Average annual total return
| 5.02% | -.31% | 1.63% | 6.99% |
S&P 500 Index+
| Growth of $10,000
| $13,457 | $8,687 | $9,499 | $24,436 |
Average annual total return
| 34.57% | -4.58% | -1.02% | 10.86% |
Lehman Brothers Government Bond Index++
| Growth of $10,000
| $10,346 | $12,216 | $13,582 | $18,125 |
Average annual total return
| 3.46% | 6.90% | 6.31% | 7.10% |
The growth of $10,000 is cumulative.
a The Fund commenced operations on May 1, 1995. Index returns begin May 31, 1995.+ 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.++ The Lehman Brothers Government Bond Index is a market value weighted index of US Treasury and government agency securities (other than mortgage securities) with maturities of one year or more.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.Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge) |
[] Scudder Retirement Fund - Series VII [] S&P 500 Index+
[] Lehman Brothers Government Bond Index++
|
 |
Yearly periods ended January 31 |
The Fund's growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.0%. This results in a net initial investment of $9,500.
Comparative Results (Adjusted for Maximum Sales Charge) as of 1/31/04 |
Scudder Retirement Fund | 1-Year | 3-Year | 5-Year | Life of Fund(b) |
Series VII | Growth of $10,000
| $10,294 | $10,478 | $11,303 | $14,839 |
Average annual total return
| 2.94% | 1.57% | 2.48% | 6.02% |
S&P 500 Index+
| Growth of $10,000
| $13,457 | $8,687 | $9,499 | $14,701 |
Average annual total return
| 34.57% | -4.58% | -1.02% | 5.95% |
Lehman Brothers Government Bond Index++
| Growth of $10,000
| $10,346 | $12,216 | $13,582 | $16,204 |
Average annual total return
| 3.46% | 6.90% | 6.31% | 7.51% |
The growth of $10,000 is cumulative.
b The Fund commenced operations on May 1, 1997. Index returns begin May 31, 1997.+ 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.++ The Lehman Brothers Government Bond Index is a market value weighted index of US Treasury and government agency securities (other than mortgage securities) with maturities of one year or more. 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.Portfolio Management Review |
|
In the following interview, Lead Portfolio Manager Gregory S. Adams addresses the economy, the management team's approach and the resulting performance of the Scudder Retirement Fund Series portfolios for the six-month period ended January 31, 2004.
Q: How would you characterize the market environment during the period?
A: An exceptionally low interest rate environment and the Federal Reserve Board's ability to dispel worry about rising rates propelled the equity markets, which logged strong gains during the period. The stock market, as represented by the Standard & Poor's 500 index (S&P 500), gained 15.23%. Small-company stocks remained potent, again outpacing their large-company counterparts. Lesser-quality issues thrived in an environment of speculation. And investors continued to move out of bonds, or "fixed-income" investments, and into stocks, or "equities."
With the notable exception of September, economic recovery continued throughout the third quarter of 2003. During that month, the markets suffered a temporary setback due to weaker-than-expected economic data (including higher jobless claims - an indicator of rising unemployment), the Bush administration's increasing budget estimates for the rebuilding of Iraq, and New York State Attorney General Eliot Spitzer's investigation into malfeasance at the New York Stock Exchange and within various mutual fund complexes.
Fourth-quarter performance stabilized as leading economic indicators (those suggesting the direction of the economy) continued to improve. Jobless claims began to moderate, and gross domestic product (generally, the total market value of all goods and services produced in the United States) figures were robust, although somewhat lower than economists had forecast.
Strong moves in economically sensitive industries, such as technology, helped ring in the new year. The market reversed in mid-January after the Federal Reserve Board announced that it might raise interest rates sooner than expected.
Q: How did the funds perform?
A: For the six months ended January 31, 2004, total returns were as follows: Scudder Retirement Series V gained 5.81%, Scudder Retirement Series VI was up 5.05%, and Scudder Retirement Series VII rose 4.90%. (Returns are unadjusted for maximum sales charges. If sales charges were included, returns would have been lower.) Past performance is no guarantee of future results. This compares with gains of 15.23% by the S&P 500 (the funds' equity benchmark) and 3.88% by the Lehman Brothers Government Bond Index (the funds' bond benchmark) for the same period.1 (Please see pages 3 through 7 for more complete performance information.)
1 The Lehman Brothers Government Bond Index is a market value weighted index of US Treasury and government agency securities (other than mortgage securities) with maturities of one year or more. Index returns assume reinvestment of dividends and capital gains and, unlike fund returns, do not reflect fees or expenses. It is not possible to invest directly in an index.The funds' equity performance benefited from overweight positions - proportionately larger holdings than the benchmark - in the technology and industrials sectors. A comparative underweight in smaller, lower-quality names (those with perceived drawbacks that could affect future earnings growth) that proved to be good performers for the period caused the fund to lag the S&P 500 overall. Consistent with its design, the funds' equity performance accounted for the lion's share of total return, while the funds' fixed-income holdings (bonds) helped mitigate volatility throughout the period.
Q: What were the most important contributors to the funds' performance?
A: The technology and industrials sectors were the strongest performing of the portfolios. Four of the funds' top contributors during the period were technology or industrial stocks: Texas Instruments, Inc., United Technologies Corp., Cisco Systems, Inc. and General Electric Co.
In the fourth quarter of 2002, we increased the funds' overweight in the industrial sector based on the belief that our selections would be helped from a continued economic recovery, with rising margins and accelerating earnings. The funds benefited from this thinking in 2003, as the share prices of holdings including United Technologies Corp., 3M Co. and Deere & Co. rose on better-than-expected earnings. While valuations in these sectors generally appear to be fair today, their brisk rise during 2003 is reason for caution and careful individual analysis.
Stock selection in the telecommunications sector also aided performance. The funds' position in AT&T Wireless Services, Inc. rallied in January following reports that the company was in discussions to be acquired. We trimmed shares of AT&T Wireless given the recent strength in the stock and we are monitoring the situation closely.
Q: What detracted from performance?
A: While the stock market rebound in 2003 was broad-based, as we mentioned earlier, the strongest performance came from smaller, lower-quality names. These higher-risk stocks had suffered the deepest declines in previous years. Because our investment discipline and the risk profile of the fund dictates that the fund focus on large-company, higher-quality stocks in general, the funds lacked exposure to these higher-risk stocks and was unable to capture the gains of this top-performing group.
Although the funds benefited from an underweight position versus the benchmark in the consumer staples sector, the absence of tobacco holdings and the poor performance of Avon Products, Inc. detracted from relative performance. Shares of Avon Products, Inc., which had performed strongly up until December of 2003, declined on the belief by some investors that there is a potential for an earnings shortfall in the coming year.
Within the consumer discretionary sector, the funds was overweight in media, which lagged the market fairly significantly. A precipitous decline in television ratings beginning with the fall season and concern about the impact of digital video recorders on advertising spending drove down many media names with exposure to broadcast television. Viacom, Inc., notably, suffered declines.
In the financial sector, robust gains from the funds' overweight position in stocks sensitive to movement in the capital markets, such as Morgan Stanley and Lehman Brothers Holdings, Inc., were not enough to offset the underperformance of some individual holdings versus their peers. For example, Bank of America Corp. dipped significantly after it announced plans to acquire FleetBoston Financial Corp. at a sizable premium. The bank lost ground to peers, including FleetBoston Financial Corp. - a benchmark holding that the fund did not own - - and other regional banks (also not owned by the portfolio) that made strides based on their potential for further mergers. The funds purchased Wachovia Corp., a promising retail bank and brokerage business, and US Bancorp - a large bank with well-diversified businesses that we believe will benefit from an expected uptick in commercial lending in 2004.
Outside of commercial banking, the funds' position in Marsh & McLennan Companies, Inc. also proved detrimental, when state and federal regulators accused its subsidiary Putnam Investments of civil securities fraud. We have since removed it from the portfolios and added to the funds' position in multiline insurer American International Group, Inc.
Q: Will you describe your stock selection process?
A: We employ a three-step investment process to build a well-diversified portfolio of large capitalization stocks. First, we use a quantitative screen to sort through a universe of large-cap stocks to find those with attractive valuations: low price-to-earnings, low price-to-cash flow and other measures, such as the direction of earnings revisions. We compare our quantitative work with the fundamental analysis done by a team of in-house equity analysts. The analysts search for companies in which improving fundamentals, such as positive trends in earnings and sales growth, have not yet been recognized by the market. If the analysts' findings warrant further investigation, we will meet with company management and, in some cases, make on-site visits to gain a better understanding of the business objectives and strategies of our potential buy candidates. Finally, we employ a variety of risk management techniques to manage the funds' volatility versus the funds' equity benchmark - the S&P 500.
Q: The funds invest primarily in stocks, but also hold a position in zero-coupon bonds. Will you explain what zero-coupon bonds are and how they work?
A: Zero-coupon bonds are a type of US Treasury bond. They are issued by the federal government and sold at a considerable discount to their face value at maturity, which is guaranteed. This means that the investor can purchase the bond at a fraction of what it will be worth on a future date.
The trade-off, so to speak, is that the bondholders receive no coupon, or periodic interest payments, as they would with most other types of bonds. More important, should a bondholder choose to redeem that investment prior to maturity, he or she would forfeit not only the opportunity to receive the bond's full face value, but the guarantee of the original investment as well. Zero-coupon bonds tend to be volatile. Their principal value - the original dollar amount invested by a bondholder - tends to fluctuate with interest rates. Therefore, the bondholder's original investment may be worth more or less at the time of early redemption.
Q: Do you have any other comments for shareholders?
A: Our portfolio management team remains focused on building a well-diversified portfolio. We continue to employ a blend of quantitative models, fundamental research and rigorous risk analysis to uncover stocks most likely to outperform the broader market.
As always, we thank our shareholders for their commitment to the fund. We look forward to continuing to serve you and to help you accomplish your long-term financial goals.
The views expressed in this report reflect those of the portfolio managers only through the end of the period of the report as stated on the cover. The managers' views are subject to change at any time based on market and other conditions and should not be construed as a recommendation.
Portfolio Summary January 31, 2004 |
|
Asset Allocation | 1/31/04 | 7/31/03 | | 1/31/04 | 7/31/03 |
| Series V | Series V | | Series VI | Series VI |
|
|
|
|
|
|
US Government Backed
| 58%
| 60%
|
| 67%
| 70%
|
Common Stocks
| 42%
| 39%
|
| 33%
| 30%
|
Cash Equivalents
| -
| 1%
|
| -
| -
|
| 100%
| 100%
|
| 100%
| 100%
|
| | | | Series VII | Series VII |
|
|
|
|
|
|
US Government Backed
|
|
|
| 78%
| 79%
|
Common Stocks
|
|
|
| 22%
| 20%
|
Cash Equivalents
|
|
|
| -
| 1%
|
|
|
|
| 100%
| 100%
|
Sector Diversification (Excludes Cash Equivalents and US Government Backed) | 1/31/04 | 7/31/03 | | 1/31/04 | 7/31/03 |
| Series V | Series V | | Series VI | Series VI |
|
|
|
|
|
|
Information Technology
| 22%
| 19%
|
| 22%
| 20%
|
Financials
| 19%
| 20%
|
| 19%
| 19%
|
Health Care
| 14%
| 16%
|
| 14%
| 15%
|
Industrials
| 13%
| 13%
|
| 13%
| 13%
|
Consumer Discretionary
| 11%
| 12%
|
| 11%
| 13%
|
Consumer Staples
| 8%
| 9%
|
| 8%
| 9%
|
Energy
| 6%
| 4%
|
| 6%
| 4%
|
Telecommunication Services
| 3%
| 4%
|
| 3%
| 4%
|
Materials
| 2%
| 2%
|
| 2%
| 2%
|
Utilities
| 2%
| 1%
|
| 2%
| 1%
|
| 100%
| 100%
|
| 100%
| 100%
|
| | | | Series VII | Series VII |
|
|
|
|
|
|
Information Technology
|
|
|
| 22%
| 20%
|
Financials
|
|
|
| 19%
| 20%
|
Health Care
|
|
|
| 14%
| 15%
|
Industrials
|
|
|
| 13%
| 13%
|
Consumer Discretionary
|
|
|
| 11%
| 11%
|
Consumer Staples
|
|
|
| 8%
| 10%
|
Energy
|
|
|
| 6%
| 4%
|
Telecommunication Services
|
|
|
| 3%
| 4%
|
Materials
|
|
|
| 2%
| 2%
|
Utilities
|
|
|
| 2%
| 1%
|
|
|
|
| 100%
| 100%
|
Asset allocation and sector diversification are subject to change.
Ten Largest Equity Holdings at January 31, 2004 |
| Series |
| V | VI | VII |
1. Citigroup, Inc.
Provider of diversified financial services
| 1.7% | 1.3% | 0.9% |
2. General Electric Co.
Industrial conglomerate
| 1.6% | 1.2% | 0.8% |
3. Microsoft Corp.
Developer of computer software
| 1.5% | 1.2% | 0.8% |
4. ExxonMobil Corp.
Explorer and producer of oil and gas
| 1.4% | 1.1% | 0.8% |
5. Pfizer, Inc.
Manufacturer of prescription pharmaceuticals and non-prescription self-medications
| 1.4% | 1.1% | 0.7% |
6. Morgan Stanley
Provider of investment banking and brokerage services
| 1.4% | 1.1% | 0.7% |
7. United Technologies Corp.
Manufacturer of aerospace equipment, climate control systems and elevators
| 1.3% | 1.0% | 0.7% |
8. Cisco Systems, Inc.
Developer of computer network products
| 1.1% | 0.9% | 0.6% |
9. Texas Instruments, Inc.
Provider of semiconductors and electronic equipment
| 1.0% | 0.8% | 0.5% |
10. Amegen, Inc.
Developer of pharmaceuticals
| 0.9% | 0.7% | 0.5% |
Portfolio holdings are subject to change.For more complete details about the Funds' investment portfolios, see page 16. A quarterly Fact Sheet is available upon request. Information concerning portfolio holdings of the Funds as of month end is available upon request no earlier than 15 days after month end. Please see the Account Management Resources section for contact information.
Investment Portfolio as of January 31, 2004 (Unaudited) | |
|
Series V
|
Shares
| Value ($) |
|
|
Common Stocks 41.8% |
Consumer Discretionary 4.8%
|
Internet & Catalog Retail 0.2%
|
InterActiveCorp.*
| 4,500
| 145,800 |
Media 2.4%
|
Comcast Corp. "A"*
| 10,200
| 336,090
|
Interpublic Group of Companies, Inc.
| 16,600
| 274,564
|
Time Warner, Inc.*
| 31,700
| 556,969
|
Viacom, Inc. "B"
| 13,221
| 532,806
|
| 1,700,429 |
Multiline Retail 0.6%
|
Kohl's Corp.*
| 2,500
| 110,750
|
Target Corp.
| 8,900
| 337,844
|
| 448,594 |
Specialty Retail 1.6%
|
Home Depot, Inc.
| 7,600
| 269,572
|
Staples, Inc.
| 17,900
| 476,319
|
The Gap, Inc.
| 18,900
| 351,162
|
| 1,097,053 |
Consumer Staples 3.1%
|
Beverages 1.0%
|
Anheuser-Busch Companies, Inc.
| 9,000
| 456,480
|
PepsiCo, Inc.
| 5,950
| 281,197
|
| 737,677 |
Food & Drug Retailing 0.9%
|
Safeway, Inc.*
| 9,700
| 219,123
|
Wal-Mart Stores, Inc.
| 7,500
| 403,875
|
| 622,998 |
Food Products 0.4%
|
Hershey Foods Corp.
| 3,600
| 271,836 |
Household Products 0.2%
|
Clorox Co.
| 2,900
| 141,752 |
Personal Products 0.6%
|
Avon Products, Inc.
| 7,300
| 462,236 |
Energy 2.3%
|
Energy Equipment & Services 0.3%
|
Baker Hughes, Inc.
| 4,800
| 168,384 |
Oil & Gas 2.0%
|
ChevronTexaco Corp.
| 3,500
| 302,225
|
Devon Energy Corp.
| 2,800
| 158,088
|
ExxonMobil Corp.
| 23,982
| 978,226
|
| 1,438,539 |
Financials 8.0%
|
Banks 2.0%
|
Bank of America Corp.
| 8,000
| 651,680
|
Mellon Financial Corp.
| 6,900
| 225,699
|
US Bancorp.
| 7,700
| 217,679
|
Wachovia Corp.
| 6,400
| 295,936
|
| 1,390,994 |
Diversified Financial Services 4.0%
|
Citigroup, Inc.
| 24,700
| 1,222,156
|
Fannie Mae
| 2,900
| 223,590
|
Lehman Brothers Holdings, Inc.
| 4,600
| 377,660
|
Morgan Stanley
| 17,000
| 989,570
|
| 2,812,976 |
Insurance 2.0%
|
AMBAC Financial Group, Inc.
| 3,300
| 246,741
|
American International Group, Inc.
| 7,400
| 513,930
|
Hartford Financial Services Group, Inc.
| 5,600
| 360,304
|
MetLife, Inc.
| 10,000
| 335,500
|
| 1,456,475 |
Health Care 5.8%
|
Biotechnology 0.9%
|
Amgen, Inc.*
| 10,300
| 664,247 |
Health Care Equipment & Supplies 1.0%
|
Biomet, Inc.
| 9,100
| 351,806
|
Guidant Corp.
| 5,800
| 370,504
|
| 722,310 |
Health Care Providers & Services 0.6%
|
Caremark Rx, Inc.*
| 9,200
| 246,100
|
WellPoint Health Networks, Inc.*
| 1,500
| 157,500
|
| 403,600 |
Pharmaceuticals 3.3%
|
Allergan, Inc.
| 1,800
| 149,130
|
Eli Lilly & Co.
| 5,200
| 353,808
|
Johnson & Johnson
| 10,388
| 554,927
|
Pfizer, Inc.
| 27,300
| 999,999
|
Wyeth
| 6,100
| 249,795
|
| 2,307,659 |
Industrials 5.5%
|
Aerospace & Defense 1.8%
|
Honeywell International, Inc.
| 10,000
| 361,200
|
United Technologies Corp.
| 9,500
| 907,630
|
| 1,268,830 |
Industrial Conglomerates 2.5%
|
3M Co.
| 8,400
| 664,356
|
General Electric Co.
| 33,300
| 1,119,879
|
| 1,784,235 |
Machinery 1.2%
|
Deere & Co.
| 5,200
| 325,520
|
Parker-Hannifin Corp.
| 9,500
| 522,405
|
| 847,925 |
Information Technology 9.1%
|
Communications Equipment 1.6%
|
Cisco Systems, Inc.*
| 31,300
| 802,532
|
Nokia Oyj (ADR)
| 16,900
| 349,154
|
| 1,151,686 |
Computers & Peripherals 2.3%
|
Dell, Inc.*
| 9,800
| 328,006
|
EMC Corp.*
| 38,600
| 541,944
|
International Business Machines Corp.
| 6,000
| 595,380
|
Lexmark International, Inc.*
| 2,200
| 182,358
|
| 1,647,688 |
Internet Software & Services 0.2%
|
Yahoo!, Inc.*
| 3,100
| 145,235 |
Semiconductors & Semiconductor Equipment 1.9%
|
Altera Corp.*
| 16,400
| 367,196
|
Intel Corp.
| 10,100
| 309,060
|
Texas Instruments, Inc.
| 21,700
| 680,295
|
| 1,356,551 |
Software 3.1%
|
Microsoft Corp.
| 39,600
| 1,094,940
|
Oracle Corp.*
| 38,300
| 528,923
|
Symantec Corp.*
| 10,000
| 388,000
|
VERITAS Software Corp.*
| 4,700
| 154,442
|
| 2,166,305 |
Materials 0.9%
|
Chemicals 0.6%
|
E.I. du Pont de Nemours & Co.
| 5,200
| 228,280
|
Monsanto Co.*
| 6,900
| 211,071
|
| 439,351 |
Paper & Forest Products 0.3%
|
International Paper Co.
| 5,400
| 228,258 |
Telecommunication Services 1.4%
|
Diversified Telecommunication Services 0.9%
|
ALLTEL Corp.
| 5,300
| 258,004
|
Verizon Communications, Inc.
| 9,900
| 364,914
|
| 622,918 |
Wireless Telecommunication Services 0.5%
|
AT&T Wireless Services, Inc.*
| 32,600
| 360,230 |
Utilities 0.9%
|
Electric Utilities
|
Exelon Corp.
| 5,200
| 348,296
|
FPL Group, Inc.
| 4,500
| 295,875
|
| 644,171 |
Total Common Stocks (Cost $23,782,431)
| 29,656,942 |
|
| Principal Amount ($) | Value ($) |
|
|
US Government Backed 57.7% |
US Treasury STRIPs:
|
|
|
Principal only, 1.478%**, 11/15/2004 | 31,340,000
| 31,051,484
|
Principal only, 1.837%**, 11/15/2004 | 10,050,000
| 9,940,385
|
Total US Government Backed (Cost $39,011,318)
| 40,991,869 |
|
| Shares | Value ($) |
|
|
Cash Equivalents 0.5% |
Scudder Cash Management QP Trust 1.09% (b)
|
|
|
(Cost $340,295)
| 340,295
| 340,295 |
Total Investment Portfolio - 100% (Cost $63,134,044) (a)
| 70,989,106 |
* Non-income producing security.** Bond equivalent yield to maturity; not a coupon rate.(a) The cost for federal income tax purposes was $63,397,568. At January 31, 2004, net unrealized appreciation for all securities based on tax cost was $7,591,538. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $8,137,788 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $546,250.(b) Scudder Cash Management QP Trust is also managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.The accompanying notes are an integral part of the financial statements.
Series VI
| Shares | Value ($) |
|
|
Common Stocks 32.5% |
Consumer Discretionary 3.7%
|
Internet & Catalog Retail 0.1%
|
InterActiveCorp.*
| 2,100
| 68,040 |
Media 1.9%
|
Comcast Corp. "A"*
| 4,900
| 161,455
|
Interpublic Group of Companies, Inc.
| 7,800
| 129,012
|
Time Warner, Inc.*
| 15,300
| 268,821
|
Viacom, Inc. "B"
| 6,331
| 255,139
|
| 814,427 |
Multiline Retail 0.5%
|
Kohl's Corp.*
| 1,200
| 53,160
|
Target Corp.
| 4,200
| 159,432
|
| 212,592 |
Specialty Retail 1.2%
|
Home Depot, Inc.
| 3,600
| 127,692
|
Staples, Inc.
| 8,500
| 226,185
|
The Gap, Inc.
| 9,000
| 167,220
|
| 521,097 |
Consumer Staples 2.5%
|
Beverages 0.8%
|
Anheuser-Busch Companies, Inc.
| 4,300
| 218,096
|
PepsiCo, Inc.
| 2,900
| 137,054
|
| 355,150 |
Food & Drug Retailing 0.7%
|
Safeway, Inc.*
| 4,600
| 103,914
|
Wal-Mart Stores, Inc.
| 3,600
| 193,860
|
| 297,774 |
Food Products 0.3%
|
Hershey Foods Corp.
| 1,800
| 135,918 |
Household Products 0.2%
|
Clorox Co.
| 1,500
| 73,320 |
Personal Products 0.5%
|
Avon Products, Inc.
| 3,400
| 215,288 |
Energy 1.8%
|
Energy Equipment & Services 0.2%
|
Baker Hughes, Inc.
| 2,300
| 80,684 |
Oil & Gas 1.6%
|
ChevronTexaco Corp.
| 1,700
| 146,795
|
Devon Energy Corp.
| 1,300
| 73,398
|
ExxonMobil Corp.
| 11,712
| 477,732
|
| 697,925 |
Financials 6.2%
|
Banks 1.5%
|
Bank of America Corp.
| 3,900
| 317,694
|
Mellon Financial Corp.
| 3,400
| 111,214
|
US Bancorp.
| 3,700
| 104,599
|
Wachovia Corp.
| 3,100
| 143,344
|
| 676,851 |
Diversified Financial Services 3.1%
|
Citigroup, Inc.
| 11,900
| 588,812
|
Fannie Mae
| 1,400
| 107,940
|
Lehman Brothers Holdings, Inc.
| 2,300
| 188,830
|
Morgan Stanley
| 8,100
| 471,501
|
| 1,357,083 |
Insurance 1.6%
|
AMBAC Financial Group, Inc.
| 1,600
| 119,632
|
American International Group, Inc.
| 3,475
| 241,339
|
Hartford Financial Services Group, Inc.
| 2,700
| 173,718
|
MetLife, Inc.
| 4,800
| 161,040
|
| 695,729 |
Health Care 4.5%
|
Biotechnology 0.7%
|
Amgen, Inc.*
| 5,000
| 322,450 |
Health Care Equipment & Supplies 0.8%
|
Biomet, Inc.
| 4,300
| 166,238
|
Guidant Corp.
| 2,800
| 178,864
|
| 345,102 |
Health Care Providers & Services 0.5%
|
Caremark Rx, Inc.*
| 4,400
| 117,700
|
WellPoint Health Networks, Inc.*
| 700
| 73,500
|
| 191,200 |
Pharmaceuticals 2.5%
|
Allergan, Inc.
| 800
| 66,280
|
Eli Lilly & Co.
| 2,500
| 170,100
|
Johnson & Johnson
| 5,016
| 267,955
|
Pfizer, Inc.
| 13,100
| 479,853
|
Wyeth
| 2,900
| 118,755
|
| 1,102,943 |
Industrials 4.2%
|
Aerospace & Defense 1.4%
|
Honeywell International, Inc.
| 4,800
| 173,376
|
United Technologies Corp.
| 4,500
| 429,930
|
| 603,306 |
Industrial Conglomerates 1.9%
|
3M Co.
| 4,000
| 316,360
|
General Electric Co.
| 15,800
| 531,354
|
| 847,714 |
Machinery 0.9%
|
Deere & Co.
| 2,500
| 156,500
|
Parker-Hannifin Corp.
| 4,600
| 252,954
|
| 409,454 |
Information Technology 7.1%
|
Communications Equipment 1.3%
|
Cisco Systems, Inc.*
| 15,900
| 407,676
|
Nokia Oyj (ADR)
| 8,200
| 169,412
|
| 577,088 |
Computers & Peripherals 1.8%
|
Dell, Inc.*
| 4,600
| 153,962
|
EMC Corp.*
| 18,800
| 263,952
|
International Business Machines Corp.
| 2,900
| 287,767
|
Lexmark International, Inc.*
| 1,000
| 82,890
|
| 788,571 |
Internet Software & Services 0.2%
|
Yahoo!, Inc.*
| 1,500
| 70,275 |
Semiconductors & Semiconductor Equipment 1.5%
|
Altera Corp.*
| 8,000
| 179,120
|
Intel Corp.
| 4,700
| 143,820
|
Texas Instruments, Inc.
| 10,500
| 329,175
|
| 652,115 |
Software 2.3%
|
Microsoft Corp.
| 18,900
| 522,585
|
Oracle Corp.*
| 18,300
| 252,723
|
Symantec Corp.*
| 4,800
| 186,240
|
VERITAS Software Corp.*
| 2,200
| 72,292
|
| 1,033,840 |
Materials 0.7%
|
Chemicals 0.5%
|
E.I. du Pont de Nemours & Co.
| 2,500
| 109,750
|
Monsanto Co.*
| 3,300
| 100,947
|
| 210,697 |
Paper & Forest Products 0.2%
|
International Paper Co.
| 2,600
| 109,902 |
Telecommunication Services 1.1%
|
Diversified Telecommunication Services 0.7%
|
ALLTEL Corp.
| 2,600
| 126,568
|
Verizon Communications, Inc.
| 4,700
| 173,242
|
| 299,810 |
Wireless Telecommunication Services 0.4%
|
AT&T Wireless Services, Inc.*
| 16,000
| 176,800 |
Utilities 0.7%
|
Electric Utilities
|
Exelon Corp.
| 2,400
| 160,752
|
FPL Group, Inc.
| 2,100
| 138,075
|
| 298,827 |
Total Common Stocks (Cost $11,734,091)
| 14,241,972 |
| Principal Amount ($) | Value ($) |
|
|
US Government Backed 67.1% |
US Treasury STRIPs Principal only, 2.298%**, 5/15/2006
|
|
|
(Cost $26,523,742)
| 30,855,000
| 29,456,034 |
Series VI
| Shares | Value ($) |
|
|
Cash Equivalents 0.4% |
Scudder Cash Management QP Trust 1.09% (b)
|
|
|
(Cost $161,976)
| 161,976
| 161,976 |
Total Investment Portfolio - 100.00% (Cost $38,419,809) (a)
| 43,859,982 |
* Non-income producing security.** Bond equivalent yield to maturity; not a coupon rate.(a) The cost for federal income tax purposes was $38,567,690. At January 31, 2004, net unrealized appreciation for all securities based on tax cost was $5,292,292. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $5,652,533 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $360,241.(b) Scudder Cash Management QP Trust is also managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.The accompanying notes are an integral part of the financial statements.
Series VII
| Shares | Value ($) |
|
|
Common Stocks 21.8% |
Consumer Discretionary 2.5%
|
Internet & Catalog Retail 0.1%
|
InterActiveCorp.*
| 1,100
| 35,640 |
Media 1.3%
|
Comcast Corp. "A"*
| 2,500
| 82,375
|
Interpublic Group of Companies, Inc.
| 4,100
| 67,814
|
Time Warner, Inc.*
| 7,900
| 138,803
|
Viacom, Inc. "B"
| 3,274
| 131,942
|
| 420,934 |
Multiline Retail 0.3%
|
Kohl's Corp.*
| 600
| 26,580
|
Target Corp.
| 2,100
| 79,716
|
| 106,296 |
Specialty Retail 0.8%
|
Home Depot, Inc.
| 1,900
| 67,393
|
Staples, Inc.
| 4,400
| 117,084
|
The Gap, Inc.
| 4,600
| 85,468
|
| 269,945 |
Consumer Staples 1.6%
|
Beverages 0.5%
|
Anheuser-Busch Companies, Inc.
| 2,100
| 106,512
|
PepsiCo, Inc.
| 1,400
| 66,164
|
| 172,676 |
Food & Drug Retailing 0.5%
|
Safeway, Inc.*
| 2,400
| 54,216
|
Wal-Mart Stores, Inc.
| 1,800
| 96,930
|
| 151,146 |
Food Products 0.2%
|
Hershey Foods Corp.
| 900
| 67,959 |
Household Products 0.1%
|
Clorox Co.
| 700
| 34,216 |
Personal Products 0.3%
|
Avon Products, Inc.
| 1,800
| 113,976 |
Energy 1.2%
|
Energy Equipment & Services 0.1%
|
Baker Hughes, Inc.
| 1,200
| 42,096 |
Oil & Gas 1.1%
|
ChevronTexaco Corp.
| 900
| 77,715
|
Devon Energy Corp.
| 700
| 39,522
|
ExxonMobil Corp.
| 6,328
| 258,119
|
| 375,356 |
Financials 4.2%
|
Banks 1.0%
|
Bank of America Corp.
| 2,000
| 162,920
|
Mellon Financial Corp.
| 1,700
| 55,607
|
US Bancorp.
| 1,900
| 53,713
|
Wachovia Corp.
| 1,600
| 73,984
|
| 346,224 |
Diversified Financial Services 2.1%
|
Citigroup, Inc.
| 6,366
| 314,990
|
Fannie Mae
| 700
| 53,970
|
Lehman Brothers Holdings, Inc.
| 1,200
| 98,520
|
Morgan Stanley
| 4,200
| 244,482
|
| 711,962 |
Insurance 1.1%
|
AMBAC Financial Group, Inc.
| 800
| 59,816
|
American International Group, Inc.
| 1,850
| 128,482
|
Hartford Financial Services Group, Inc.
| 1,400
| 90,076
|
MetLife, Inc.
| 2,500
| 83,875
|
| 362,249 |
Health Care 3.0%
|
Biotechnology 0.5%
|
Amgen, Inc.*
| 2,600
| 167,674 |
Health Care Equipment & Supplies 0.5%
|
Biomet, Inc.
| 2,300
| 88,918
|
Guidant Corp.
| 1,400
| 89,432
|
| 178,350 |
Health Care Providers & Services 0.3%
|
Caremark Rx, Inc.*
| 2,300
| 61,525
|
WellPoint Health Networks, Inc.*
| 400
| 42,000
|
| 103,525 |
Pharmaceuticals 1.7%
|
Allergan, Inc.
| 400
| 33,140
|
Eli Lilly & Co.
| 1,300
| 88,452
|
Johnson & Johnson
| 2,626
| 140,281
|
Pfizer, Inc.
| 6,600
| 241,758
|
Wyeth
| 1,500
| 61,425
|
| 565,056 |
Industrials 2.8%
|
Aerospace & Defense 0.9%
|
Honeywell International, Inc.
| 2,500
| 90,300
|
United Technologies Corp.
| 2,300
| 219,742
|
| 310,042 |
Industrial Conglomerates 1.3%
|
3M Co.
| 2,100
| 166,089
|
General Electric Co.
| 8,200
| 275,766
|
| 441,855 |
Machinery 0.6%
|
Deere & Co.
| 1,300
| 81,380
|
Parker-Hannifin Corp.
| 2,300
| 126,477
|
| 207,857 |
Information Technology 4.8%
|
Communications Equipment 0.9%
|
Cisco Systems, Inc.*
| 8,300
| 212,812
|
Nokia Oyj (ADR)
| 4,400
| 90,904
|
| 303,716 |
Computers & Peripherals 1.2%
|
Dell, Inc.*
| 2,300
| 76,981
|
EMC Corp.*
| 9,600
| 134,784
|
International Business Machines Corp.
| 1,550
| 153,807
|
Lexmark International, Inc.*
| 500
| 41,445
|
| 407,017 |
Internet Software & Services 0.1%
|
Yahoo!, Inc.*
| 800
| 37,480 |
Semiconductors & Semiconductor Equipment 1.0%
|
Altera Corp.*
| 4,000
| 89,560
|
Intel Corp.
| 2,400
| 73,440
|
Texas Instruments, Inc.
| 5,300
| 166,155
|
| 329,155 |
Software 1.6%
|
Microsoft Corp.
| 9,600
| 265,440
|
Oracle Corp.*
| 9,500
| 131,195
|
Symantec Corp.*
| 2,400
| 93,120
|
VERITAS Software Corp.*
| 1,100
| 36,146
|
| 525,901 |
Materials 0.5%
|
Chemicals 0.3%
|
E.I. du Pont de Nemours & Co.
| 1,300
| 57,070
|
Monsanto Co.*
| 1,800
| 55,062
|
| 112,132 |
Paper & Forest Products 0.2%
|
International Paper Co.
| 1,400
| 59,178 |
Telecommunication Services 0.7%
|
Diversified Telecommunication Services 0.4%
|
ALLTEL Corp.
| 1,300
| 63,284
|
Verizon Communications, Inc.
| 2,400
| 88,464
|
| 151,748 |
Wireless Telecommunication Services 0.3%
|
AT&T Wireless Services, Inc.*
| 8,100
| 89,505 |
Utilities 0.5%
|
Electric Utilities
|
Exelon Corp.
| 1,400
| 93,772
|
FPL Group, Inc.
| 1,100
| 72,325
|
| 166,097 |
Total Common Stocks (Cost $6,275,505)
| 7,366,963 |
| Principal Amount ($) | Value ($) |
|
|
US Government Backed 77.8% |
US Treasury STRIPs Principal only, 3.389%** , 5/15/2008
|
|
|
(Cost $23,002,080)
| 29,870,000
| 26,246,620 |
Series VII
| Shares | Value ($) |
|
|
Cash Equivalents 0.4% |
Scudder Cash Management QP Trust 1.09% (b)
|
|
|
(Cost $137,126)
| 137,126
| 137,126 |
Total Investment Portfolio - 100.00% (Cost $29,414,711) (a)
| 33,750,709 |
* Non-income producing security.** Bond equivalent yield to maturity; not a coupon rate.(a) The cost for federal income tax purposes was $29,494,611. At January 31, 2004, net unrealized appreciation for all securities based on tax cost was $4,256,098. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $4,465,540 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $209,442.(b) 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.The accompanying notes are an integral part of the financial statements.
Statements of Assets and Liabilities as of January 31, 2004 (Unaudited) |
Assets
| Series V | Series VI | Series VII |
Investments:
Investments in securities, at value (cost $62,793,749, $38,257,833 and $29,277,585, respectively)
| $ 70,648,811 | $ 43,698,006 | $ 33,613,583 |
Investments in Scudder Cash Management QP Trust (cost $340,295, $161,976 and $137,126, respectively)
| 340,295 | 161,976 | 137,126 |
Total investments in securities, at value (cost $63,134,044, $38,419,809 and $29,414,711, respectively)
| 70,989,106 | 43,859,982 | 33,750,709 |
Cash
| 10,000 | 10,000 | 1,785 |
Receivable for investments sold
| 88,247 | 44,118 | 25,201 |
Dividends receivable
| 19,684 | 9,485 | 4,942 |
Interest receivable
| 167 | 81 | 41 |
Other assets
| 1,624 | - | 788 |
Total assets
| 71,108,828 | 43,923,666 | 33,783,466 |
Liabilities
|
Payable for investments purchased
| 169,431 | 77,604 | 39,966 |
Payable for Fund shares redeemed
| 21,196 | 74,531 | 41,100 |
Accrued management fee
| 30,732 | 19,895 | 14,593 |
Other accrued expenses and payables
| 89,373 | 55,741 | 45,355 |
Total liabilities
| 310,732 | 227,771 | 141,014 |
Net assets, at value
| $ 70,798,096 | $ 43,695,895 | $ 33,642,452 |
Net Assets
|
Net assets consist of:
Undistributed net investment income
| 1,226,933 | 723,401 | 7,496 |
Net unrealized appreciation (depreciation) on investments
| 7,855,062 | 5,440,173 | 4,335,998 |
Accumulated net realized gain (loss)
| (5,151,381) | (1,955,051) | (1,459,793) |
Paid-in capital
| 66,867,482 | 39,487,372 | 30,758,751 |
Net assets, at value
| $ 70,798,096 | $ 43,695,895 | $ 33,642,452 |
Net Asset Value
|
Shares outstanding
| 8,842,514 | 4,384,671 | 3,030,564 |
Net asset value and redemption price per share
(Net assets / outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized)
| $ 8.01 | $ 9.97 | $ 11.10 |
The accompanying notes are an integral part of the financial statements.
Statements of Operations for the six months ended January 31, 2004 (Unaudited) |
Investment Income
| Series V | Series VI | Series VII |
Income:
Dividends
| $ 201,757 | $ 95,316 | $ 49,343 |
Interest
| 1,515,646 | 913,533 | 719,303 |
Interest - Scudder Cash Management QP Trust
| 822 | 398 | 419 |
Total Income
| 1,718,225 | 1,009,247 | 769,065 |
Expenses:
Management fee
| 177,893 | 111,339 | 85,082 |
Services to shareholders
| 35,939 | 21,861 | 17,081 |
Custodian fees
| 2,639 | 1,947 | 1,796 |
Administrative fee
| 23,796 | 14,935 | 11,352 |
Distribution service fees
| 88,947 | 55,669 | 40,836 |
Auditing
| 12,343 | 9,817 | 9,807 |
Legal
| 3,968 | 508 | 519 |
Trustees' fees and expenses
| 8,925 | 7,485 | 6,356 |
Reports to shareholders
| 1,371 | 931 | 766 |
Registration fees
| 1,677 | 1,945 | 5,078 |
Other
| 2,694 | 344 | 168 |
Total expenses, before expense reductions
| 360,192 | 226,781 | 178,841 |
Expense reductions
| (3) | (4) | (6) |
Total expenses after expense reductions
| 360,189 | 226,777 | 178,835 |
Net investment income (loss)
| 1,358,036 | 782,470 | 590,230 |
Realized and Unrealized Gain (Loss) on Investment Transactions
|
Net realized gain (loss) from investments
| 703,937 | 518,573 | 302,477 |
Net unrealized appreciation (depreciation) during the period on investments
| 1,855,288 | 842,495 | 725,029 |
Net gain (loss) on investment transactions
| 2,559,225 | 1,361,068 | 1,027,506 |
Net increase (decrease) in net assets resulting from operations
| $ 3,917,261 | $ 2,143,538 | $ 1,617,736 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets | | |
Increase (Decrease) in Net Assets
| Series V |
Six Months Ended January 31, 2004 (Unaudited) | Year Ended July 31, 2003 |
Operations:
Net investment income (loss)
| $ 1,358,036 | $ 2,873,482 |
Net realized gain (loss) on investment transactions
| 703,937 | (2,543,805) |
Net unrealized appreciation (depreciation) on investment transactions during the period
| 1,855,288 | 2,738,583 |
Net increase (decrease) in net assets resulting from operations
| 3,917,261 | 3,068,260 |
Distributions to shareholders from:
Net investment income
| (2,764,011) | (3,027,143) |
Fund share transactions:
Reinvestment of distributions
| 2,685,893 | 2,940,432 |
Cost of shares redeemed
| (4,463,120) | (9,446,529) |
Net increase (decrease) in net assets from Fund share transactions
| (1,777,227) | (6,506,097) |
Increase (decrease) in net assets
| (623,977) | (6,464,980) |
Net assets at beginning of period
| 71,422,073 | 77,887,053 |
Net assets at end of period
| $ 70,798,096 | $ 71,422,073 |
Undistributed net investment income
| $ 1,226,933 | $ 2,632,908 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets | | |
| Series VI |
Increase (Decrease) in Net Assets
| Six Months Ended January 31, 2004 (Unaudited) | Year Ended July 31, 2003 |
Operations:
Net investment income (loss)
| $ 782,470 | $ 1,623,163 |
Net realized gain (loss) on investment transactions
| 518,573 | (991,755) |
Net unrealized appreciation (depreciation) on investment transactions during the period
| 842,495 | 1,799,437 |
Net increase (decrease) in net assets resulting from operations
| 2,143,538 | 2,430,845 |
Distributions to shareholders from:
Net investment income
| (1,632,654) | (1,674,049) |
Fund share transactions:
Reinvestment of distributions
| 1,572,768 | 1,614,909 |
Cost of shares redeemed
| (3,092,976) | (4,825,196) |
Net increase (decrease) in net assets from Fund share transactions
| (1,520,208) | (3,210,287) |
Increase (decrease) in net assets
| (1,009,324) | (2,453,491) |
Net assets at beginning of period
| 44,705,219 | 47,158,710 |
Net assets at end of period
| $ 43,695,895 | $ 44,705,219 |
Undistributed net investment income
| $ 723,401 | $ 1,573,585 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets | | |
| Series VII |
Increase (Decrease) in Net Assets
| Six Months Ended January 31, 2004 (Unaudited) | Year Ended July 31, 2003 |
Operations:
Net investment income (loss)
| $ 590,230 | $ 1,248,324 |
Net realized gain (loss) on investment transactions
| 302,477 | (277,542) |
Net unrealized appreciation (depreciation) on investment transactions during the period
| 725,029 | 1,232,739 |
Net increase (decrease) in net assets resulting from operations
| 1,617,736 | 2,203,521 |
Distributions to shareholders from:
Net investment income
| (1,217,553) | (1,343,859) |
Fund share transactions:
Reinvestment of distributions
| 1,195,006 | 1,307,921 |
Cost of shares redeemed
| (2,111,809) | (4,712,920) |
Net increase (decrease) in net assets from Fund share transactions
| (916,803) | (3,404,999) |
Increase (decrease) in net assets
| (516,620) | (2,545,337) |
Net assets at beginning of period
| 34,159,072 | 36,704,409 |
Net assets at end of period
| $ 33,642,452 | $ 34,159,072 |
Undistributed net investment income
| $ 7,496 | $ 634,819 |
The accompanying notes are an integral part of the financial statements.
Series V |
Years Ended July 31, | 2004a | 2003 | 2002 | 2001 | 2000 | 1999 |
Selected Per Share Data
|
Net asset value, beginning of period
| $ 7.88 | $ 7.87 | $ 8.84 | $ 10.55 | $ 10.18 | $ 10.17 |
Income (loss) from investment operations:
Net investment income (loss)b
| .15 | .30 | .28 | .28 | .28 | .29 |
Net realized and unrealized gain (loss) on investment transactions
| .30 | .03 | (.86) | (.78) | .72 | .76 |
Total from investment operations | .45 | .33 | (.58) | (.50) | 1.00 | 1.05 |
Less distributions from:
Net investment income
| (.32) | (.32) | (.20) | (.35) | (.25) | (.33) |
Net realized gains on investment transactions
| - | - | (.19) | (.86) | (.38) | (.71) |
Total distributions | (.32) | (.32) | (.39) | (1.21) | (.63) | (1.04) |
Net asset value, end of period
| $ 8.01 | $ 7.88 | $ 7.87 | $ 8.84 | $ 10.55 | $ 10.18 |
Total Return (%)c
| 5.81** | 4.40 | (6.77) | (4.79) | 10.07 | 10.81 |
Ratios to Average Net Assets and Supplemental Data
|
Net assets, end of period ($ millions)
| 71 | 71 | 78 | 96 | 114 | 122 |
Ratio of expenses before expense reductions (%)
| 1.01* | .96 | .97 | .97d | .98 | 1.03 |
Ratio of expenses after expense reductions (%)
| 1.01* | .96 | .97 | .95d | .98 | 1.03 |
Ratio of net investment income (loss) (%)
| 3.82* | 3.92 | 3.41 | 2.91 | 2.75 | 2.87 |
Portfolio turnover rate (%)
| 12* | 17 | 50 | 52 | 40 | 40 |
a For the six months ended January 31, 2004 (Unaudited).
b Based on average shares outstanding during the period.
c Total return does not reflect the effect of any sales charge.
d The ratios of operating expenses excluding costs incurred in connection with a fund complex reorganization before and after expenses reductions were .93% and .93%, respectively.
* Annualized
** Not annualized
|
|
Series VI |
Years Ended July 31, | 2004a | 2003 | 2002 | 2001 | 2000 | 1999 |
Selected Per Share Data
|
Net asset value, beginning of period
| $ 9.86 | $ 9.70 | $ 10.40 | $ 11.70 | $ 11.22 | $ 11.25 |
Income (loss) from investment operations:
Net investment income (loss)b
| .18 | .35 | .33 | .32 | .32 | .33 |
Net realized and unrealized gain (loss) on investment transactions
| .31 | .17 | (.63) | (.52) | .76 | .64 |
Total from investment operations | .49 | .52 | (.30) | (.20) | 1.08 | .97 |
Less distributions from:
Net investment income
| (.38) | (.36) | (.23) | (.32) | (.25) | (.46) |
Net realized gains on investment transactions
| - | - | (.17) | (.78) | (.35) | (.54) |
Total distributions | (.38) | (.36) | (.40) | (1.10) | (.60) | (1.00) |
Net asset value, end of period
| $ 9.97 | $ 9.86 | $ 9.70 | $ 10.40 | $ 11.70 | $ 11.22 |
Total Return (%)c
| 5.05** | 5.54 | (3.04) | (1.75) | 9.80 | 8.81 |
Ratios to Average Net Assets and Supplemental Data
|
Net assets, end of period ($ millions)
| 44 | 45 | 47 | 55 | 63 | 67 |
Ratio of expenses before expense reductions (%)
| 1.02* | .98 | .97 | .98d | 1.06 | 1.02 |
Ratio of expenses after expense reductions (%)
| 1.02* | .98 | .97 | .96d | 1.05 | 1.02 |
Ratio of net investment income (loss) (%)
| 3.52* | 3.57 | 3.31 | 2.94 | 2.77 | 2.90 |
Portfolio turnover rate (%)
| 9* | 12 | 39 | 42 | 32 | 33 |
a For the six months ended January 31, 2004 (Unaudited).
b Based on average shares outstanding during the period.
c Total return does not reflect the effect of any sales charge.
d The ratios of operating expenses excluding costs incurred in connection with a fund complex reorganization before and after expenses reductions were .94% and .94%, respectively.
* Annualized
** Not annualized
|
|
Series VII |
Years Ended July 31, | 2004a | 2003 | 2002 | 2001 | 2000 | 1999 |
Selected Per Share Data
|
Net asset value, beginning of period
| $ 10.98 | $ 10.74 | $ 11.03 | $ 11.60 | $ 10.95 | $ 10.62 |
Income (loss) from investment operations:
Net investment income (loss)b
| .19 | .38 | .37 | .35 | .33 | .32 |
Net realized and unrealized gain (loss) on investment transactions
| .34 | .28 | (.29) | (.13) | .61 | .24 |
Total from investment operations | .53 | .66 | .08 | .22 | .94 | .56 |
Less distributions from:
Net investment income
| (.41) | (.42) | (.37) | (.38) | (.29) | (.21) |
Net realized gains on investment transactions
| - | - | - | (.41) | - | (.02) |
Total distributions | (.41) | (.42) | (.37) | (.79) | (.29) | (.23) |
Net asset value, end of period
| $ 11.10 | $ 10.98 | $ 10.74 | $ 11.03 | $ 11.60 | $ 10.95 |
Total Return (%)c
| 4.90** | 6.28 | .82 | 1.88 | 8.73 | 5.25 |
Ratios to Average Net Assets and Supplemental Data
|
Net assets, end of period ($ millions)
| 34 | 34 | 37 | 41 | 47 | 48 |
Ratio of expenses before expense reductions (%)
| 1.05* | .98 | .97 | 1.05d | 1.09 | 1.18 |
Ratio of expenses after expense reductions (%)
| 1.05* | .98 | .97 | 1.04d | 1.08 | 1.18 |
Ratio of net investment income (loss) (%)
| 3.47* | 3.51 | 3.46 | 3.06 | 2.99 | 2.86 |
Portfolio turnover rate (%)
| 6* | 8 | 27 | 36 | 43 | 26 |
a For the six months ended January 31, 2004 (Unaudited).
b Based on average shares outstanding during the period.
c Total return does not reflect the effect of any sales charge.
d The ratios of operating expenses excluding costs incurred in connection with a fund complex reorganization before and after expenses reductions were 1.01% and 1.01%, respectively.
* Annualized
** Not annualized
|
Notes to Financial Statements (Unaudited) |
|
A. Significant Accounting Policies
Scudder Retirement Fund Series V, VI and VII (the "Funds") are each a diversified series of Scudder Target Fund (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 objectives of the Funds are to provide a guaranteed return of investment on the Maturity Date to investors who reinvest all dividends and hold their shares to the Maturity Date, and to provide long-term growth of capital. The Maturity Date for each Fund is as follows:
Fund | Maturity Date |
Series V
| November 15, 2004 |
Series VI
| May 15, 2006 |
Series VII
| May 15, 2008 |
The assurance that investors who reinvest all dividends and hold their shares until the Maturity Date will receive at least their original investment on the Maturity Date is provided by the principal amount of the zero coupon US Treasury obligations in the Funds' portfolios. This assurance is further backed by an agreement entered into by Deutsche Investment Management Americas Inc. ("DeIM" or the "Advisor"), the Funds' investment manager. Fund shares were sold during limited offering periods, and are redeemable on a continuous basis.
The Funds' 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 Funds in the preparation of their 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.
Debt securities are valued by independent pricing services approved by the Trustees of the Funds. If the pricing services are unable to provide valuations, the securities are valued at the most recent bid quotation or evaluated price, as applicable, obtained from one or more broker-dealers. Such services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes.
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.
Federal Income Taxes. Each 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 Funds paid no federal income taxes and no federal income tax provision was required.
At July 31, 2003, the Funds had net tax basis capital loss carryforwards which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until the following expiration dates, whichever occurs first. These losses were, approximately, as follows:
Fund | Capital Loss Carryforward ($) | Expiration Date |
Retirement Fund Series V
| 3,032,000
1,356,000
| 7/31/2010 7/31/2011 |
Retirement Fund Series VI
| 1,307,000
554,000
| 7/31/2010 7/31/2011 |
Retirement Fund Series VII
| 26,000
1,357,000
250,000
| 7/31/2009 7/31/2010 7/31/2011 |
In addition, from November 1, 2002 through July 31, 2003, the Funds incurred net realized capital losses. As permitted by tax regulations, the Funds intend to defer these losses and treat them as arising in the fiscal year ended July 31, 2004. These losses were, approximately, as follows:
Fund | Net Realized Capital Loss ($) |
Retirement Fund Series V
| 1,168,000 |
Retirement Fund Series VI
| 457,000 |
Retirement Fund Series VII
| 46,000 |
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 each 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 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, each Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of each Fund.
The tax character of current year distributions, if any, will be determined at the end of the current fiscal year.
Other. Investment transactions are accounted for on a trade date plus one basis for daily net asset valuation calculations. However, for financial reporting purposes, investment transactions are reported on trade date. 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. All discounts and premiums are accreted/amortized for both tax and financial reporting purposes.
B. Purchases and Sales of Securities
During the six months ended January 31, 2004, purchases and sales of investment securities (excluding short-term investments) were as follows:
| Series V | Series VI | Series VII |
Purchases
| $ 4,123,889 | $ 1,921,306 | $ 989,912 |
Proceeds from sales
| $ 8,634,798 | $ 5,279,602 | $ 2,882,850 |
C. Related Parties
Management Agreement. Under the Management Agreement, the Advisor directs the investments of the Funds 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 Funds. In addition to portfolio management services, the Advisor provides certain administrative services in accordance with the Management Agreement. The Funds pay a monthly investment management fee of 1/12 of the annual rate of 0.50% of average daily net assets, computed and accrued daily and payable monthly.
Administrative Fee. Under the Administrative Agreement (the "Administrative Agreement"), the Advisor provided or paid others, (affiliated and non-affiliated), to provide substantially all of the administrative services required by the Funds (other than those provided by the Advisor under its Management Agreement with the Funds, as described above) in exchange for the payment by the Funds of an administrative services fee (the "Administrative Fee") of 0.20% of the average daily net assets, computed and accrued daily and payable monthly.
For the period from August 1, 2003 through September 30, 2003, the Funds' Administrative Fee was as follows:
Fund | Total Aggregated |
Series V
| $ 23,796 |
Series VI
| $ 14,935 |
Series VII
| $ 11,352 |
The Administrative Agreement between the Advisor and the Funds terminated September 30, 2003 and the Funds will directly bear the cost of those expenses formerly covered under the Administrative Agreement.
Effective October 1, 2003 through September 30, 2005, the Advisor has agreed to contractually waive all or a portion of its management fee and reimburse or pay certain operating expenses of the Funds to the extent necessary to maintain each Fund's operating expenses at 1.00% of average daily net assets (excluding certain expenses such as Rule 12b-1 and/or service fees, trustees and trustee counsel fees, extraordinary expenses, taxes, brokerage and interest).
Service Provider Fees.
Scudder Investments Service Company ("SISC"), an affiliate of the Advisor, is the Funds' 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 Funds. For the period October 1, 2003 through January 31, 2004, the amount charged to the Retirement Fund Series V, VI and VII by SISC aggregated $35,939, $21,861 and $17,081, respectively, all of which is unpaid at January 31, 2004.
Prior to September 30, 2003, the fees outlined above were paid by the Advisor in accordance with the Administrative Agreement.
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, provides information and administrative services ("Service Fee") to shareholders at an annual rate of up to 0.25% of average daily net assets. 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 January 31, 2004, the Funds' Service Fee was as follows:
Fund | Total Aggregated | Unpaid at January 31, 2004 | Effective Rate |
Series V
| $ 88,947 | $ 27,609 | .25% |
Series VI
| $ 55,669 | $ 20,015 | .25% |
Series VII
| $ 40,836 | $ 19,660 | .24% |
Trustees' Fees and Expenses. The Funds pay 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 Funds may invest in the Scudder Cash Management QP Trust (the "QP Trust") and other affiliated funds managed by the Advisor. The QP Trust seeks to provide as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity. The QP Trust does not pay the Advisor a management fee for the affiliated funds' investments in the QP Trust.
D. Expense Off-Set Arrangement
The Funds have entered into an arrangement with their custodian whereby credits realized as a result of uninvested cash balances were used to reduce a portion of the Funds' expenses. For the period ended January 31, 2004, the custody expenses for Retirement Fund Series V, VI and VII were reduced by $3, $4 and $6, respectively, for custodian credits earned.
E. Line of Credit
The Funds 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 Funds may borrow up to a maximum of 33 percent of their net assets under the agreement.
F. Share Transactions
The following table summarizes share and dollar activity in the Funds:
| Six Months Ended
January 31, 2004 | Year Ended
July 31, 2003 |
| Shares | Dollars | Shares | Dollars |
Shares issued to shareholders in reinvestment of distributions
|
Series V
| 343,464 | 2,685,893 | 392,058 | 2,940,432 |
Series VI
| 161,144 | 1,572,768 | 171,616 | 1,614,909 |
Series VII
| 109,734 | 1,195,006 | 123,272 | 1,307,921 |
Shares redeemed
|
Series V
| (559,460) | (4,463,120) | (1,233,169) | (9,446,529) |
Series VI
| (308,829) | (3,092,976) | (499,516) | (4,825,196) |
Series VII
| (189,638) | (2,111,809) | (431,196) | (4,712,920) |
Net increase (decrease)
|
Series V
| (215,996) | (1,777,227) | (841,111) | (6,506,097) |
Series VI
| (147,685) | (1,520,208) | (327,900) | (3,210,287) |
Series VII
| (79,904) | (916,803) | (307,924) | (3,404,999) |
Account Management Resources |
|
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 219356
Kansas 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 Plaza
Chicago, IL 60606-5808
(800) 621-1148
|
| Series V | Series VI | Series VII |
Nasdaq Symbol | KRFEX
| KRFFX
| KRFGX
|
CUSIP Number | 81123E-507
| 81123E-705
| 81123E-804
|
Fund Number | 55
| 56
| 57
|
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
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.
(b) During the filing period of the report, management identified a significant
deficiency relating to the overall fund expense payment and accrual process.
Management discussed these matters 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.
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 Retirement Fund - Series V
By: /s/Richard T. Hale
--------------------------------
Richard T. Hale
Chief Executive Officer
Date: March 29, 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 Retirement Fund - Series V
By: /s/Richard T. Hale
--------------------------------
Richard T. Hale
Chief Executive Officer
Date: March 29, 2004
--------------------------------
By: /s/Charles A. Rizzo
--------------------------------
Charles A. Rizzo
Chief Financial Officer
Date: March 29, 2004
--------------------------------
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 Retirement Fund - Series VI
By: /s/Richard T. Hale
--------------------------------
Richard T. Hale
Chief Executive Officer
Date: March 29, 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 Retirement Fund - Series VI
By: /s/Richard T. Hale
--------------------------------
Richard T. Hale
Chief Executive Officer
Date: March 29, 2004
--------------------------------
By: /s/Charles A. Rizzo
--------------------------------
Charles A. Rizzo
Chief Financial Officer
Date: March 29, 2004
--------------------------------
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 Retirement Fund - Series VII
By: /s/Richard T. Hale
--------------------------------
Richard T. Hale
Chief Executive Officer
Date: March 29, 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.
By: /s/Richard T. Hale
--------------------------------
Richard T. Hale
Chief Executive Officer
Date: March 29, 2004
--------------------------------
By: /s/Charles A. Rizzo
--------------------------------
Charles A. Rizzo
Chief Financial Officer
Date: March 29, 2004
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