UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07507
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Scudder Investments VIT Funds
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(Exact name of registrant as specified in charter)
Two International Place
Boston, MA 02110-4103
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(Address of principal executive offices) (Zip code)
Daniel O. Hirsch
Deutsche Asset Management
One South Street
Baltimore, MD 21202
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(Name and address of agent for service)
Registrant's telephone number, including area code: 617-535-0532
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Date of fiscal year end: December 31, 2004
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Date of reporting period: June 30, 2004
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
[GRAPHIC OMITTED]
SCUDDER
INVESTMENTS
Scudder VIT EAFE(R) Equity Index Fund
SEMIANNUAL REPORT
June 30, 2004
Scudder VIT EAFE(R) Equity Index Fund
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TABLE OF CONTENTS
LETTER TO SHAREHOLDERS ................................. 3
PERFORMANCE COMPARISON ................................. 6
SCUDDER VIT EAFE(R) EQUITY INDEX FUND
Schedule of Investments ............................. 7
Statement of Assets and Liabilities .................17
Statement of Operations .............................18
Statements of Changes in Net Assets .................19
Financial Highlights ................................20
Notes to Financial Statements .......................22
Proxy Voting ........................................27
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THIS REPORT MUST BE PRECEDED OR
ACCOMPANIED BY A PROSPECTUS. TO OBTAIN A
PROSPECTUS, CALL YOUR FINANCIAL
REPRESENTATIVE. WE ADVISE YOU TO
CONSIDER THE FUND'S OBJECTIVES, RISKS,
CHARGES AND EXPENSES CAREFULLY BEFORE
INVESTING. THE PROSPECTUS CONTAINS THIS
AND OTHER IMPORTANT INFORMATION ABOUT
THE FUND. PLEASE READ THE PROSPECTUS
CAREFULLY BEFORE YOU INVEST.
The Fund is not insured by the FDIC and
is not a deposit, obligation of or
guaranteed by Deutsche Bank AG. The Fund
is subject to investment risks,
including possible loss of principal
amount invested. There is no guarantee
that the Fund will be able to mirror the
MSCI EAFE(R) Index closely enough to
track its performance. The Fund
concentrates its investments in
securities of foreign issuers. A variety
of factors such as changes in the
economic/political conditions and
currency fluctuations in the
international markets may affect the
value of your investment in the Fund.
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2
Scudder VIT EAFE(R) Equity Index Fund
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LETTER TO SHAREHOLDERS
ALL PERFORMANCE IN THIS REPORT IS HISTORICAL AND IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE FLUCTUATE WITH CHANGING MARKETING
CONDITIONS, SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE RETURN
FIGURES QUOTED. FOR THE FUND'S MOST RECENT MONTH-END PERFORMANCE, CALL
1-800-621-1048. PERFORMANCE QUOTED FOR THE FUND DOES NOT INCLUDE THE EFFECT OF
CONTRACT CHARGES, WHICH WOULD LOWER THE RETURNS PRESENTED. RETURNS ARE NET OF
THE FUND'S MANAGEMENT FEES AND OTHER OPERATING EXPENSES. RETURNS WOULD HAVE BEEN
LOWER IF CERTAIN OF THE FUND'S FEES AND EXPENSES HAD NOT BEEN WAIVED.
This Fund is designed to serve as an investment option for certain variable
annuity contracts, variable life insurance policies and tax-qualified plans.
Variable annuities are long-term, tax-deferred contracts designed for retirement
purposes, asset accumulation, distribution and transference. Contract value will
fluctuate based on the performance of your subaccount selection. Earnings from
variable annuity investments compound tax free until withdrawal, so no
adjustments are made for income taxes.
In the following interview, the portfolio management team discusses Scudder VIT
EAFE(R) Equity Index Fund's market environment and performance during the
six-month period ended June 30, 2004.
Q: HOW DID SCUDDER VIT EAFE(R) EQUITY INDEX FUND PERFORM OVER THE SEMIANNUAL
PERIOD?
A: For the six-month period, Scudder VIT EAFE(R) Equity Index Fund produced a
positive total return of 4.09% (Class A shares), as compared with a return of
4.56% for its benchmark, the Morgan Stanley Capital International (MSCI) Europe,
Australasia and Far East (EAFE(R)) Index. 1 The broad-based MSCI EAFE(R) Index
is a group of international company stocks that is not available for direct
investment. (Please see pages 4 and 6 for the performance of Class B shares and
more complete performance information.)
Q: WHAT WERE THE PRIMARY FACTORS AFFECTING THE INTERNATIONAL EQUITY MARKETS
DURING THE PAST SIX MONTHS?
A: The turnaround in global stock markets that began in 2003 continued into the
first quarter of 2004. The release of increasingly positive economic, corporate
earnings and corporate capital spending numbers helped drive global equity
markets.
In the second quarter, many measures of the global economy--including
employment, consumer spending, corporate capital expenditures and
earnings--continued to improve. However, stock prices made only modest gains in
the second quarter.
Several factors held back equity markets. First, there was the expectation that
we were entering a period of rising interest rates, particularly in the United
States. The US Federal Reserve Board fulfilled this expectation with a
one-quarter-point rate increase on the last day of the period. The Bank of
England also announced a pair of rate hikes and set the expectation for more in
the future.
Second, investors felt that corporations would have difficulty showing strong
year-over-year gains in the latter half of 2004, after earnings growth had
improved so dramatically in the second half of 2003. The US dollar fell 2.2%
during the quarter as investors pondered the strength of the recovery in the US
economy.
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1 The MSCI EAFE(R) Index is the exclusive property of Morgan Stanley Capital
International, a service of Morgan Stanley, and has been licensed for use by
the Fund's investment advisor. The MSCI EAFE(R) Index is an unmanaged,
capitalization-weighted index containing approximately 1,100 equity securities
of companies located in Europe, Australasia and the Far East.
Index returns assume reinvestment of dividends and capital gains and, unlike
fund returns, do not reflect fees and expenses. A direct investment in an index
is not possible.
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3
Scudder VIT EAFE(R) Equity Index Fund
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LETTER TO SHAREHOLDERS
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COUNTRY ALLOCATION
As of June 30, 2004
(percentages are based on market value of total equities in the Fund)
A Fund's country allocation is subject to change.
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United Kingdom ............................. 25.07%
Japan ...................................... 24.01
France ..................................... 9.05
Switzerland ................................ 7.23
Germany .................................... 6.77
Netherlands ................................ 4.99
Australia .................................. 4.87
Italy ...................................... 3.75
Spain ...................................... 3.56
All Other Countries ........................ 10.70
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100.00%
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Third, investor concerns about geopolitical instability held back stock prices
as well. We believe the March 2004 train bombings in Spain, continued unrest in
Iraq and terrorism in Saudi Arabia brought international political concerns to
the forefront of investors' minds. Political instability in the Middle East,
which could constrict oil supplies and bring additional oil price hikes, gave
investors pause. In addition, worries that the Chinese economic engine would
sputter acted as a drag on the global economy. Companies around the world supply
China with raw materials and finished goods. As a result, any changes in the
condition of China's economy can have considerable ripple effects around the
world.
Q: HOW DID THE REGIONS THAT COMPRISE THE MSCI EAFE(R) INDEX PERFORM?
A: Regionally, Asia led the way in the first quarter of 2004, driven by expected
reflation in both Hong Kong and Japan. Hong Kong, represented by the MSCI Hong
Kong Index, started the first quarter strong, rallying up 13.3% through the end
of February, but as the US dollar recovered and the Chinese government tightened
INVESTMENT REVIEW
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CUMULATIVE TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS
Periods Ended 6 Months 1 Year 3 Years 5 Years Since 1 Year 3 Years 5 Years Since
June 30, 2004 Inception 1 Inception 1
Class A (inception 8-22-97)
Class B (inception 4-30-02)
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Scudder VIT EAFE(R) Equity Index Fund 2
Class A 4.09% 29.09% (2.14)% (16.28)% (1.00)% 29.09% (0.72)% (3.49)% (0.15)%
Class B 3.83% 28.61% n/a n/a 8.83% 28.61% n/a n/a 3.98%
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MSCI EAFE(R) Index 2 4.56% 32.37% 12.06% 0.30% 21.80% 32.37% 3.87% 0.06% 2.93%
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Lipper International Core
Fund Average 3 2.59% 26.99% 2.26% (4.95)% 15.33% 26.99% 0.57% (1.28)% 1.80%
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ALL PERFORMANCE IN THIS REPORT IS HISTORICAL AND IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE FLUCTUATE WITH CHANGING MARKETING
CONDITIONS, SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE RETURN
FIGURES QUOTED. FOR THE FUND'S MOST RECENT MONTH-END PERFORMANCE, CALL
1-800-621-1048. PERFORMANCE QUOTED FOR THE FUND DOES NOT INCLUDE THE EFFECT OF
CONTRACT CHARGES, WHICH WOULD LOWER THE RETURNS PRESENTED. RETURNS ARE NET OF
THE FUND'S MANAGEMENT FEES AND OTHER OPERATING EXPENSES. RETURNS WOULD HAVE BEEN
LOWER IF CERTAIN OF THE FUND'S FEES AND EXPENSES HAD NOT BEEN WAIVED.
PERFORMANCE FIGURES FOR CLASSES A AND B DIFFER BECAUSE EACH CLASS MAINTAINS A
DISTINCT EXPENSE STRUCTURE. TOTAL RETURN IS BASED ON NET CHANGE IN NET ASSET
VALUE, ASSUMING THE REINVESTMENT OF ALL DISTRIBUTIONS.
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1 The Fund's inception dates are: Class A Shares: August 22, 1997, Class
B Shares: April 30, 2002. Benchmark returns are for comparative purposes
relative to Class A Shares and are for the period beginning August 31, 1997
for the MSCI EAFE(R) Index and the Lipper International Core Fund Average.
2 The MSCI EAFE(R) Index is the exclusive property of Morgan Stanley Capital
International, a service of Morgan Stanley, and has been licensed for use by
the Fund's investment advisor. The MSCI EAFE(R) Index is an unmanaged index
that tracks international stock performance in the 21 developed markets of
Europe, Australasia and the Far East.
3 The Lipper International Core Fund Average tracks funds that invest assets in
securities with primary trading markets outside of the United States. Lipper
figures represent the average of the total returns reported by all of the
mutual funds designated by Lipper Inc. as falling into the category indicated.
Index returns assume reinvestment of dividends and capital gains and, unlike
fund returns, do not reflect fees and expenses. A direct investment in an index
is not possible.
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4
Scudder VIT EAFE(R) Equity Index Fund
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LETTER TO SHAREHOLDERS
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TEN LARGEST STOCK HOLDINGS
As of June 30, 2004
(percentages are based on total net assets of the Fund)
A Fund's holdings are subject to change.
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BP PLC ........................................2.23%
HSBC Holdings PLC .............................1.87
Vodafone Group PLC ............................1.70
GlaxoSmithKline PLC ...........................1.38
Toyota Motor Corp. ............................1.34
Total SA ......................................1.28
Nestle SA .....................................1.24
Royal Dutch Petroleum Co. .....................1.23
Novartis AG ...................................1.20
Royal Bank of Scotland Group PLC ..............0.98
Information concerning portfolio holdings of the Fund as of a month end is
available upon request on the 16th of the following month.
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monetary policy, the market pulled back. Hong Kong ended the quarter up only
6.5%. Japan witnessed a dramatic rally that began late in February and continued
until the end of the quarter when technical fiscal-year-end selling came to an
end and the Bank of Japan's currency intervention eased. Japan, as represented
by the MSCI Japan Index, finished the quarter up 15.2%.
Europe, represented by the MSCI Europe Index, though positive in the first
quarter, was the underperformer, finishing up only 0.94%. Concerns over the
sustainability of the US recovery and political uncertainty following the
surprise Socialist party victory in the Spanish elections on the heels of the
Madrid train bombing weighed on the markets. The reluctance of the European
Central Bank to cut interest rates also exacerbated concerns.
Regionally, a reversal occurred in the second quarter, with Europe outperforming
and Asia underperforming. The Pacific Basin component of the index fell 4.0% in
US$ terms, affected significantly by the weakness of the Japanese yen.
Offsetting this were positive returns in Europe, which rallied 2.1% during the
quarter. The smaller European markets had the best returns in US$ terms: Austria
(+7.0%), Belgium (+6.0%), Ireland (+7.4%) and Norway (+6.1%). The United
Kingdom, the largest market in Europe, gained 1.5%.
Q: WHICH SECTORS AND STOCKS WITHIN THE MSCI EAFE(R) INDEX WERE THE BEST AND
WORST PERFORMERS?
A: For the semiannual period, the best-performing sectors included utilities,
consumer discretionary and consumer staples. The bottom-three rungs were
occupied by health care, materials and telecommunications services.
For the second quarter, top-performing sectors included energy (+6.8%), in
response to rising oil prices, and consumer staples (+3.4%), in response to
increased profits. Laggards included information technology (-7.4%), as
semiconductor stocks fell in response to concern about global demand, and
financials (-1.5%), as bank and real estate stocks declined over interest rate
concerns.
At the end of May, MSCI implemented its annual full-country index review.
Seventy-eight stocks were added to the index while seven were deleted. Japan's
EAFE weight increased 1%, while Europe had a weight decline of 1%.
Additions to the Index included Yahoo Japan Corp. (Japan), Synthes, Inc.
(Switzerland) and Depfa Bank PLC (Ireland). Deletions from the Index included
Roche Holding AG-Bearer (Switzerland) and Wella Vorzug (Germany).
Q: ANY FINAL THOUGHTS FOR INVESTORS?
A: No changes in strategy have been made. Our goal is to maintain a fully
invested posture, while seeking to replicate the return and risk characteristics
of the index. The index itself provides broad-based exposure to 21 of the
largest developed markets outside the United States, across all sectors of the
economy.
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THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGERS ONLY
THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER. THE
MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME, BASED ON MARKET AND OTHER
CONDITIONS AND SHOULD NOT BE CONSTRUED AS A RECOMMENDATION.
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5
Scudder VIT EAFE(R) Equity Index Fund
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PERFORMANCE COMPARISON
Scudder VIT EAFE(R) Equity Index Fund--Class A Shares and MSCI EAFE(R) Index
Growth of a $10,000 Investment (Since Inception)
[GRAPHIC OMITTED]
PLOT POINTS FOLLOW:
Scudder VIT EAFE(R)
Equity Index Fund MSCI EAFE(R) Index
8/22/97 $10,000 $10,000
8/31/97 9,590 10,000
9/30/97 10,160 10,560
10/31/97 9,350 9,748
11/30/97 9,270 9,649
12/31/97 9,340 9,732
1/31/98 9,790 10,177
2/28/98 10,390 10,831
3/31/98 10,700 11,164
4/30/98 10,790 11,252
5/31/98 10,730 11,197
6/30/98 10,920 11,282
7/31/98 10,960 11,396
8/31/98 9,730 9,984
9/30/98 9,490 9,678
10/31/98 10,410 10,686
11/30/98 10,930 11,233
12/31/98 11,358 11,676
1/31/99 11,388 11,641
2/28/99 11,073 11,364
3/31/99 11,541 11,838
4/30/99 11,998 12,317
5/31/99 11,337 11,683
6/30/99 11,825 12,138
7/31/99 12,140 12,499
8/31/99 12,231 12,545
9/30/99 12,292 12,672
10/31/99 12,780 13,147
11/30/99 13,278 13,603
12/31/99 14,492 14,825
1/31/00 13,469 13,884
2/29/00 13,917 14,257
3/31/00 14,386 14,810
4/30/00 13,576 14,031
5/31/00 13,246 13,689
6/30/00 13,672 14,224
7/31/00 13,107 13,628
8/31/00 13,214 13,747
9/30/00 12,510 13,077
10/31/00 12,212 12,768
11/30/00 11,690 12,290
12/31/00 12,078 12,726
1/31/01 12,035 12,720
2/28/01 11,081 11,766
3/31/01 10,311 10,981
4/30/01 11,038 11,744
5/31/01 10,604 11,329
6/30/01 10,116 10,866
7/31/01 9,888 10,668
8/31/01 9,606 10,398
9/30/01 8,674 9,345
10/31/01 8,782 9,584
11/30/01 9,097 9,938
12/31/01 9,097 9,997
1/31/02 8,587 9,466
2/28/02 8,587 9,532
3/31/02 9,032 10,093
4/30/02 9,032 10,114
5/31/02 9,118 10,242
6/30/02 8,685 9,834
7/31/02 7,807 8,864
8/31/02 7,774 8,843
9/30/02 6,852 7,894
10/31/02 7,156 8,318
11/30/02 7,449 8,695
12/31/02 7,132 8,403
1/31/03 6,846 8,053
2/28/03 6,669 7,868
3/31/03 6,482 7,714
4/30/03 7,090 8,470
5/31/03 7,519 8,983
6/30/03 7,669 9,201
7/30/03 7,854 9,423
8/30/03 8,005 9,650
9/30/03 8,167 9,948
10/30/03 8,665 10,567
11/30/03 8,839 10,802
12/31/03 9,511 11,646
1/30/04 9,615 11,810
2/28/04 9,778 12,083
3/31/04 9,812 12,150
4/30/04 9,579 11,876
5/31/04 9,674 11,901
6/30/04 9,900 12,180
Not depicted in graph: growth of $10,000 for B Shares from inception through
June 30, 2004: $10,883.
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AVERAGE ANNUAL TOTAL RETURNS
Since Inception
Periods Ended 1 Year 3 Years 5 Years Class A
June 30, 2004 8-22-97
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Scudder VIT EAFE(R) Equity
Index Fund--Class A Shares 29.09% (0.72)% (3.49)% (0.15)%
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AVERAGE ANNUAL TOTAL RETURNS
Since Inception
Periods Ended 1 Year Class B
June 30, 2004 4-30-02
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Scudder VIT EAFE(R) Equity
Index Fund--Class B Shares 28.61% 3.98%
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ALL PERFORMANCE IN THIS REPORT IS HISTORICAL AND IS NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE FLUCTUATE WITH CHANGING MARKETING
CONDITIONS, SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE RETURN
FIGURES QUOTED. FOR THE FUND'S MOST RECENT MONTH-END PERFORMANCE, CALL
1-800-621-1048. PERFORMANCE QUOTED FOR THE FUND DOES NOT INCLUDE THE EFFECT OF
CONTRACT CHARGES, WHICH WOULD LOWER THE RETURNS PRESENTED. RETURNS ARE NET OF
THE FUND'S MANAGEMENT FEES AND OTHER OPERATING EXPENSES. RETURNS WOULD HAVE BEEN
LOWER IF CERTAIN OF THE FUND'S FEES AND EXPENSES HAD NOT BEEN WAIVED.
PERFORMANCE FIGURES FOR CLASSES A AND B DIFFER BECAUSE EACH CLASS MAINTAINS A
DISTINCT EXPENSE STRUCTURE. TOTAL RETURN IS BASED ON NET CHANGE IN NET ASSET
VALUE, ASSUMING THE REINVESTMENT OF ALL DISTRIBUTIONS.
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1 The MSCI EAFE(R) Index is an unmanaged index that tracks international stock
performance in the 21 developed markets of Europe, Australasia and the Far
East. Index returns assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees or expenses. A direct investment in an index is not
possible.
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6
Scudder VIT EAFE(R) Equity Index Fund
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SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited)
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SHARES SECURITY VALUE
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COMMON STOCKS--89.02%
AUSTRALIA--4.08%
24,555 Alumina Ltd. ..................$ 90,315
18,826 Amcor Ltd. .................... 91,406
35,975 AMP Ltd. ...................... 158,631
459 Ansell Ltd. ................... 2,475
4,344 Aristocrat Leisure Ltd. ....... 14,646
30,123 Australia and New Zealand
Banking Group Ltd. ........... 383,583
10,146 Australian Gas and
Light Co., Ltd. .............. 85,732
64,857 BHP Billiton Ltd. ............. 566,099
10,823 BlueScope Steel Ltd. .......... 50,815
10,720 Boral Ltd. .................... 48,241
21,336 Brambles Industries Ltd. ...... 89,176
11,831 Centro Properties Group ....... 32,801
19,264 CFS Gandel Retail Trust ....... 18,653
8,674 Coca Cola Amatil Ltd. ......... 41,873
320 Cochlear Ltd. ................. 5,065
22,087 Coles Myer Ltd. ............... 132,164
20,777 Commonwealth Bank of Australia 471,540
4,366 Computershare Ltd. ............ 9,672
3,294 CSL Ltd. ...................... 51,170
12,109 CSR Ltd. ...................... 18,726
40,518 Foster's Group Ltd. ........... 133,222
43,502 General Property Trust ........ 105,760
5,284 Harvey Norman Holdings Ltd. ... 10,380
34,543 Insurance Australia Group Ltd. 120,314
8,823 Investa Property Group ........ 11,985
6,251 James Hardie Industries NV .... 26,127
6,345 Lend Lease Corp., Ltd. ........ 45,437
4,414 Macquarie Bank Ltd. ........... 104,174
41,552 Macquarie Infrastructure Group 95,519
12,352 Mayne Group Ltd. .............. 29,341
11,870 Mirvac Group .................. 35,555
25,945 National Australia Bank Ltd. .. 539,308
2,988 Newcrest Mining Ltd. .......... 28,682
25,434 News Corp., Ltd. (The) ........ 224,656
2,171 Onesteel Ltd. ................. 3,766
1,838 Orica Ltd. .................... 19,333
11,478 Origin Energy Ltd. ............ 45,095
605 PaperlinX Ltd. ................ 2,044
5,549 Patrick Corp., Ltd. ........... 20,642
12,523 QBE Insurance Group Ltd. ...... 111,661
19,900 Rinker Group Ltd. ............. 111,592
6,144 Rio Tinto Ltd. ................ 153,863
6,574 Santos Ltd. ................... 31,736
3,495 Sonic Healthcare Ltd. ......... 22,204
5,697 Southcorp Ltd. 1 .............. 12,461
26,769 Stockland ..................... 96,593
11,144 Suncorp-Metway Ltd. ........... 110,234
9,117 TABCORP Holdings Ltd. ......... 90,437
42,540 Telstra Corp., Ltd. ........... 149,056
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SHARES SECURITY VALUE
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7,442 Transurban Group ..............$ 25,247
7,382 Wesfarmers Ltd. ............... 151,184
9,051 Westfield Holdings Ltd. ....... 97,096
43,209 Westfield Trust ............... 132,739
30,927 Westpac Banking Corp., Ltd. ... 379,171
23,042 WMC Resources Ltd. ............ 78,971
9,571 Woodside Petroleum Ltd. ....... 111,142
17,819 Woolworths Ltd. ............... 141,505
------------
5,971,015
------------
AUSTRIA--0.23%
510 Bank Austria Creditanstalt .... 29,908
160 Boehler-Uddeholm AG ........... 13,276
530 Erste Bank Der Oesterreichischen
Sparkassen AG ................ 83,247
180 Flughaffen Wien AG ............ 10,380
3,075 Immofinanz Immobilien
Anlagen AG 1 ................. 24,879
60 Oesterreichische
Elektrizitaetswirtschafts AG--
Class A ...................... 10,553
240 OMV AG ........................ 46,722
4,839 Telekom Austria AG ............ 73,886
40 VA Technologie AG 1 ........... 2,252
320 voestalpine AG ................ 15,768
680 Wienerberger AG ............... 23,670
------------
334,541
------------
BELGIUM--1.04%
1,714 Agfa Gevaert NV ............... 42,520
43 Barco NV ...................... 3,877
168 Bekaert NV .................... 9,678
2,896 Belgacom 1 .................... 88,156
235 Colruyt SA .................... 29,020
1,427 Delhaize Group ................ 73,005
11,440 Dexia ......................... 189,848
478 Electrabel SA ................. 153,241
19,747 Fortis ........................ 437,258
1,008 Fortis-Strip VVPR 1 ........... 24
1,256 Groupe Bruxelles Lambert SA ... 80,302
2,830 Interbrew ..................... 90,037
1,851 KBC Bankverzekeringsholding 5 . 106,498
354 Mobistar SA 1 ................. 22,051
14 S.A. D'Ieteren NV ............. 2,954
1,175 Solvay SA ..................... 95,924
1,672 UCB SA 5 ...................... 77,871
201 Umicore ....................... 12,655
------------
1,514,919
------------
DENMARK--0.66%
20 A/S Dampskibsselskabet
Svendborg--
Class B ...................... 137,496
375 Carlsberg AS--Class B ......... 19,826
See Notes to Financial Statements.
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7
Scudder VIT EAFE(R) Equity Index Fund
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SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited)
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
79 Coloplast AS--Class B .........$ 7,448
978 Danisco AS .................... 50,427
7,926 Danske Bank AS ................ 187,795
242 DSV, De Sammensluttede
Vognmaend af 13-7-1976 AS .... 11,567
3,535 GN Store Nord AS .............. 31,246
1,029 Group 4 Falck AS .............. 26,444
772 H. Lundbeck AS ................ 16,807
860 ISS AS ........................ 42,513
75 Kobenhavns Lufthavne AS ....... 10,926
280 NKT Holding AS ................ 5,683
4,492 Novo Nordisk AS--Class B ...... 231,245
1,064 Novozymes AS--Class B ......... 47,982
2,374 TDC AS ........................ 77,135
317 Topdanmark AS 1 ............... 18,732
2,492 Vestas Wind Systems AS 1 ...... 36,610
286 William Demant Holdings AS 1 .. 10,814
------------
970,696
------------
FINLAND--1.27%
3,100 Elisa Corp. 1 ................. 41,488
6,600 Fortum Oyj .................... 84,314
1,100 Kesko Oyj--B Shares ........... 21,814
760 Kone Corp.--B Shares .......... 45,937
1,900 Metso Corp. ................... 24,041
80,650 Nokia Oyj ..................... 1,163,735
1,100 Outokumpu Oyj ................. 17,599
900 Pohjola Group PLC--D Shares ... 9,263
5,700 Sampo Oyj--A Shares ........... 55,340
11,300 Stora Enso Oyj--R Shares ...... 153,292
1,740 TietoEnator Oyj ............... 52,818
9,500 UPM--Kymmene Oyj .............. 180,770
100 Wartsila Oyj--B Shares ........ 2,239
------------
1,852,650
------------
FRANCE--8.09%
3,545 Accor SA ...................... 149,619
637 Air France .................... 10,858
21,750 Alcatel SA--Class A 1 ......... 335,540
456 Atos Origin SA 1 .............. 29,293
1,510 Autoroutes du Sud de la France 59,964
11,391 Aventis SA .................... 859,941
22,842 Axa ........................... 503,011
137 BIC ........................... 6,097
13,764 BNP Paribas SA ................ 846,508
3,442 Bouygues SA ................... 115,246
2,282 Cap Gemini SA 1 ............... 91,593
9,816 Carrefour SA .................. 476,272
488 Casino Guichard-Perrachon SA .. 44,025
182 CNP Assurances ................ 10,560
5,365 Compagnie de Saint Gobain ..... 267,424
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
2,596 Compagnie Generale des
Etablissements Michelin--
Class B ......................$ 143,550
10,873 Credit Agricole SA 5 .......... 264,572
1,203 Dassault Systemes SA .......... 55,779
1,690 Essilor International SA ...... 110,312
18,964 France Telecom SA 5 ........... 494,218
413 Gecina SA ..................... 32,460
4,118 Groupe Danone 5 ............... 359,228
1,962 L'Air Liquide SA .............. 324,402
5,229 L'Oreal SA 5................... 417,656
3,015 LaFarge SA .................... 268,879
2,356 Lagardere S.C.A. .............. 147,191
4,379 LVMH Moet-Hennessy Louis ......
Vuitton SA ................... 316,732
907 Pernod-Ricard SA .............. 115,978
1,272 Pinault-Printemps-Redoute SA .. 130,693
3,151 PSA Peugeot Citroen ........... 175,467
1,161 Publicis SA ................... 34,367
3,101 Renault SA .................... 236,179
242 Sagem SA ...................... 26,999
6,286 Sanofi-Synthelabo SA 5 ........ 398,453
3,737 Schneider Electric SA ......... 255,065
5,533 Societe Generale--A Shares .... 470,210
1,627 Societe Television Francaise .. 51,249
778 Sodexho Alliance SA ........... 20,502
14,426 Suez SA 5...................... 300,304
2,040 Suez SA-Strip VVPR 1 .......... 25
101 Technip SA .................... 13,701
1,270 Thomson CSF ................... 46,462
4,497 Thomson Multimedia ............ 88,689
9,809 Total SA 5..................... 1,870,074
468 Total SA-Strip VVPR 1 ......... 6
835 Unibail (Union du Credit-Bail
Immobilier) .................. 86,352
488 Valeo SA ...................... 20,335
4,731 Veolia Environment ............ 133,481
1,277 Vinci SA ...................... 128,643
17,469 Vivendi Universal SA 1 ........ 484,583
------------
11,828,747
------------
GERMANY--5.96%
891 Adidas Salomon AG ............. 106,376
5,259 Allianz AG 5................... 569,646
1,278 Altana AG ..................... 76,858
9,109 BASF AG ....................... 487,517
11,765 Bayer AG ...................... 339,239
451 Bayerische Hypo-und
Vereinsbank AG 1,6 ........... 8,077
9,095 Bayerische Hypo-und
Vereinsbank AG 1,6 ........... 161,776
250 Beiersdorf AG ................. 29,215
493 Celesio AG .................... 29,451
9,050 Commerzbank AG 1 .............. 159,435
2,612 Continental AG ................ 125,971
14,660 DaimlerChrysler AG ............ 684,905
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
8
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited)
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
8,894 Deutsche Bank AG ..............$ 698,812
1,580 Deutsche Boerse AG ............ 80,295
2,400 Deutsche Lufthansa AG 1 ....... 32,645
8,247 Deutsche Post AG .............. 178,098
42,802 Deutsche Telekom AG 1 ......... 751,963
10,581 E.ON AG ....................... 763,390
450 Epcos AG 1 .................... 9,400
784 Fresenius Medical Care AG ..... 58,175
419 HeidelbergCement AG ........... 20,875
52 HeidelbergCement AG-Strip VVPR 0
1,170 Henkel KGaA 5 ................. 99,900
1,638 Hypo Real Estate
Holding AG 1,6 ............... 48,048
112 Hypo Real Estate
Holding AG 1,6 ............... 3,284
11,886 Infineon Technologies AG 1 .... 159,506
550 KarstadtQuelle AG ............. 11,971
1,190 Linde AG ...................... 65,499
1,444 MAN AG ........................ 52,670
500 Marschollek, Lauenschlaeger und
Partner AG ................... 7,379
500 Merck KGaA .................... 30,112
2,782 Metro AG ...................... 131,869
2,856 Muenchener Rueckversicherungs-
Gesellschaft AG .............. 309,600
216 Puma AG Rudolf Dassler Sport .. 54,890
820 Qiagen NV 1 ................... 9,667
6,843 RWE AG ........................ 321,782
3,498 SAP AG 5....................... 579,900
3,107 Schering AG ................... 183,072
13,559 Siemens AG 5................... 975,110
6,062 ThyssenKrupp AG ............... 103,328
1,343 TUI AG ........................ 25,653
4,142 Volkswagen AG ................. 174,967
------------
8,720,326
------------
GREECE--0.40%
3,540 Alpha Bank A.E. ............... 90,015
2,660 Bank of Piraeus ............... 31,068
1,330 Coca-Cola Hellenic
Bottling Co. SA .............. 31,068
2,040 Cosmote Mobile
Telecommunications SA ........ 32,017
3,380 EFG Eurobank Ergasias ......... 73,692
900 Emporiki Bank of Greece SA .... 23,455
430 Germanos SA ................... 12,420
1,310 Hellenic Petroleum SA ......... 10,933
4,540 Hellenic Telecommunications
Organization SA (OTE) ....... 58,992
810 Intracom SA ................... 3,528
4,403 National Bank of Greece SA .... 95,781
2,904 OPAP SA ....................... 54,834
1,518 Public Power Corp. ............ 36,199
820 Titan Cement Co. SA ........... 19,295
2,360 Viohalco, Hellenic Copper and
Aluminum Industry SA ......... 16,941
------------
590,238
------------
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
HONG KONG--1.38%
1,000 ASM Pacific Technology Ltd. ...$ 3,750
20,091 Bank of East Asia Ltd. ........ 57,441
68,000 BOC Hong Kong (Holdings) Ltd. . 115,952
22,000 Cathay Pacific Airways Ltd. ... 41,463
27,000 Cheung Kong Holdings Ltd. ..... 199,044
5,000 Cheung Kong Infrastructure
Holdings Ltd. ................ 12,052
31,200 CLP Holdings Ltd. ............. 170,804
12,232 Esprit Holdings Ltd. .......... 54,732
5,000 Hang Lung Properties Ltd. ..... 6,442
12,900 Hang Seng Bank Ltd. ........... 165,389
15,000 Henderson Land Development
Co., Ltd. .................... 64,617
56,661 Hong Kong and China
Gas Co., Ltd. ................ 93,348
25,500 Hong Kong Electric
Holdings Ltd. ................ 105,599
22,000 Hong Kong Exchanges &
Clearing Ltd. ................ 45,129
38,000 Hutchison Whampoa Ltd. ........ 259,430
13,000 Johnson Electric Holdings Ltd. 13,250
35,000 Li & Fung Ltd. ................ 51,155
23,000 MTR Corp., Ltd. ............... 34,796
14,774 New World Development
Co., Ltd. .................... 10,891
71,206 PCCW Ltd. 1 ................... 48,385
14,122 Shangri-La Asia Ltd. .......... 13,760
12,301 Sino Land Co., Ltd. ........... 6,860
24,191 Sun Hung Kai Properties Ltd. .. 198,495
17,500 Swire Pacific Ltd.--Class A ... 113,304
20,000 Techtronic Industries
Co., Ltd. .................... 31,924
3,000 Television Broadcasts Ltd. .... 12,847
24,693 Wharf Holdings Ltd. ........... 70,915
6,000 Yue Yuen Industrial
Holdings Ltd. ................ 14,577
------------
2,016,351
------------
IRELAND--0.74%
14,710 Allied Irish Banks PLC ........ 227,717
17,126 Bank of Ireland ............... 228,573
9,273 CRH PLC ....................... 196,213
515 DCC PLC ....................... 9,336
4,969 Depfa Bank PLC 1 .............. 72,184
6,845 Elan Corp. PLC 1 .............. 166,238
2,269 Grafton Group PLC 1 ........... 18,109
6,063 Independent News & Media PLC .. 14,089
4,937 Irish Life & Permanent PLC .... 75,272
2,478 Kerry Group PLC--Class A ...... 52,458
2,876 Ryanair Holdings PLC 1 ........ 16,026
------------
1,076,215
------------
ITALY--3.35%
9,109 Alleanza Assicurazioni ........ 103,953
16,336 Assicurazioni Generali ........ 440,633
1,636 Autogrill SPA 1 ............... 23,189
3,501 Autostrade SPA ................ 68,791
4,551 Banca Antonveneta SPA 1 ....... 93,519
5,831 Banca Fideuram SPA ............ 32,705
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
9
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited)
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
54,282 Banca Intesa SPA ..............$ 211,995
14,805 Banca Monte dei Paschi
di Siena SPA ................. 47,373
20,990 Banca Nazionale del Lavoro 1 .. 48,776
3,498 Banca Popolare di Milano Scrl . 22,471
6,208 Banche Popolari Unite Scrl .... 102,947
7,109 Banco Popolare di Verona
e Novara Scrl ................ 122,126
1,126 Benetton Group SPA ............ 12,877
1,080 Bulgari SPA ................... 10,919
16,198 Capitalia SPA ................ 50,648
43,135 Enel SPA 5 .................... 345,844
44,010 Eni SPA 5 ..................... 873,850
9,318 Fiat SPA 1 .................... 77,997
924 FinecoGroup SPA 1 ............. 5,823
117,352 Finmeccanica SPA .............. 93,233
1,344 Gruppo Editoriale
L'Espresso SPA ............... 8,094
8,724 IntesaBci SPA ................. 26,217
833 Italcementi SPA ............... 11,148
2,143 Luxottica Group SPA ........... 35,720
11,241 Mediaset SPA .................. 128,147
9,100 Mediobanca SPA ................ 110,715
1,035 Mediolanum SPA ................ 6,586
1,581 Mondadori (Arnoldo)
Editore SPA .................. 14,965
11,912 Pirelli & Co. SPA ............. 12,304
4,518 Ras SPA ....................... 81,958
16,729 San Paolo-IMI SPA ............. 201,498
8,818 Seat Pagine Gialle SPA ........ 3,626
23,247 Seat Pagine Gialle SPA ........ 9,758
15,091 Snam Rete Gas SPA ............. 64,812
64,406 Telecom Italia Mobile SPA ..... 365,155
141,391 Telecom Italia SPA 1 .......... 439,519
93,961 Telecom Italia SPA-RNC ........ 207,486
724 Tiscali SPA 1 ................. 3,250
75,801 UniCredito Italiano SPA ....... 374,426
------------
4,895,053
------------
JAPAN--21.46%
3,000 77 Bank Ltd. .................. 20,455
1,500 Acom Co., Ltd. ................ 97,466
1,300 Advantest Corp. ............... 87,092
5,000 Aeon Co., Ltd. ................ 200,706
900 Aiful Corp. ................... 93,947
2,000 Aisin Seiko Co. Ltd. .......... 41,699
11,000 Ajinomoto Co., Inc. ........... 132,466
2,000 Alps Electric Co. ............. 28,447
8,000 Amada Co., Ltd. ............... 52,788
300 Aoyama Trading Co., Ltd. ...... 8,124
8,000 Asahi Breweries Ltd. .......... 88,201
24,000 Asahi Chemical Industry
Co., Ltd. .................... 124,273
14,000 Asahi Glass Co., Ltd. ......... 145,626
1,100 Bandai Co., Ltd. .............. 29,941
7,000 Bank of Fukuoka Ltd. .......... 41,507
19,000 Bank of Yokohama Ltd. ......... 118,755
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
800 Benesse Corp. .................$ 26,248
12,000 Bridgestone Corp. ............. 225,450
14,000 Canon, Inc. ................... 737,754
4,000 Casio Computer Co., Ltd. ...... 60,560
17 Central Japan Railway Co. ..... 144,737
14,000 Chiba Bank Ltd. ............... 85,708
11,400 Chubu Electric Power Co., Inc. 240,819
4,000 Chugai Pharmaceutical
Co., Ltd. .................... 62,759
3,000 Citizen Watch Co., Ltd. ....... 33,982
1,000 Comsys Holdings Corp. ......... 8,120
1,900 Credit Saison Co., Ltd. ....... 57,114
1,500 CSK Corp. ..................... 72,859
11,000 Dai Nippon Printing Co., Ltd. . 175,714
5,000 Daichi Pharmaceutical
Co., Ltd. .................... 89,126
4,000 Daikin Industries Ltd. ........ 107,410
4,000 Daimaru, Inc. ................. 36,365
6,000 Dainippon Ink &
Chemicals, Inc. .............. 15,397
2,000 Daito Trust Construction
Co., Ltd. .................... 76,983
9,000 Daiwa House Industry Co., Ltd. 104,422
23,000 Daiwa Securities Co., Ltd. .... 165,257
9,000 Denso Corp. ................... 209,504
31 Dentsu, Inc. .................. 79,833
61 East Japan Railway Co. ........ 342,134
3,000 Ebara Corp. ................... 14,654
4,000 Eisai Co., Ltd. ............... 115,108
600 FamilyMart Co., Ltd. .......... 19,576
2,700 Fanuc Ltd. .................... 161,087
1,100 Fast Retailing Co., Ltd. ...... 89,016
8,000 Fuji Photo Film Co. ........... 250,745
4 Fuji Television Network, Inc. . 9,165
4,000 Fujikura Ltd. ................. 22,508
5,000 Fujisawa Pharmaceutical
Co., Ltd. .................... 118,453
30,000 Fujitsu Ltd. .................. 211,428
13,000 Furukawa Electric Co., Ltd. 1 . 55,519
2,000 Gunma Bank Ltd. ............... 10,081
2,000 Hankyu Department Stores, Inc. 17,449
400 Hirose Electric Co., Ltd. ..... 43,954
2,000 Hitachi Chemical Co., Ltd. .... 32,864
56,000 Hitachi Ltd. .................. 385,428
2,100 Hokkaido Electric
Power Co., Inc. .............. 37,317
13,300 Honda Motor Co., Ltd. ......... 641,140
1,000 House Foods Corp. ............. 14,132
2,000 Hoya Corp. .................... 209,320
3,000 Isetan Co. Ltd. ............... 43,193
10,000 Ishikawajima-Harima Heavy
Industries Co., Ltd. 1 ....... 16,496
500 Ito En Ltd. ................... 23,691
6,000 Ito-Yokado Co., Ltd. .......... 256,793
27,000 Itochu Corp. 1 ................ 121,248
200 Jafco Co., Ltd. ............... 15,268
6,000 Japan Airlines Corp. 1 ........ 19,191
2 Japan Real Estate
Investment Corp. ............. 13,967
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
10
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited)
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
18 Japan Tobacco, Inc. ...........$ 139,889
9,025 JFE Holdings, Inc. ............ 221,252
1,000 JGC Corp. ..................... 9,623
6,000 Joyo Bank Ltd. ................ 26,669
4,000 JSR Corp. ..................... 75,150
20,000 Kajima Corp. .................. 74,234
10,800 Kansai Electric Power
Co., Inc. .................... 196,868
10,000 Kao Corp. ..................... 241,030
14,000 Kawasaki Heavy Industries Ltd. 22,582
8,000 Kawasaki Kisen Kaisha Ltd. .... 40,398
7,000 Keihin Electric Express
Railway Co., Ltd. ............ 43,816
12,000 Keio Electric Railway
Co., Ltd. .................... 68,515
5,000 Keneka Corp. .................. 47,335
630 Keyence Corp. ................. 143,708
3,000 Kikkoman Corp. ................ 25,734
1,000 Kinden Corp. .................. 6,250
28,630 Kinki Nippon Railway .......... 108,889
13,000 Kirin Brewery Co., Ltd. ....... 128,552
50,000 Kobe Steel Ltd. ............... 74,692
1,000 Kokuyo Co., Ltd. .............. 12,611
19,000 Komatsu Ltd. ................. 115,099
2,000 Konami Co., Ltd. .............. 50,772
8,000 Konica Minolta Holdings, Inc. . 110,416
20,000 Kubota Corp. .................. 106,310
8,000 Kuraray Co., Ltd. ............. 65,472
1,000 Kurita Water Industries Ltd. .. 13,701
3,000 Kyocera Corp. ................. 254,594
3,000 Kyowa Hakko Kogyo Co., Ltd. ... 21,638
7,800 Kyushu Electric Power
Co., Inc. .................... 145,470
1,400 Lawson, Inc. .................. 57,737
200 Mabuchi Motor Co., Ltd. ....... 14,828
28,000 Marubeni Corp. ................ 68,771
6,000 Marui Co., Ltd. ............... 80,832
37,596 Matsushita Electric
Industrial Co., Ltd. ......... 533,714
7,000 Matsushita Electric Works Ltd. 63,511
4,000 Meiji Seika Kaisha Ltd. ....... 17,816
400 Meitec Corp. .................. 15,836
26 Millea Holdings, Inc. ......... 386,015
4,000 Minabea Co., Ltd. ............. 18,623
34,000 Mitsubishi Chemical Corp. ..... 90,363
19,000 Mitsubishi Corp. .............. 184,576
32,000 Mitsubishi Electric Corp. ..... 157,192
17,000 Mitsubishi Estate Co., Ltd. ... 210,952
55,000 Mitsubishi Heavy
Industries Ltd. .............. 149,200
22,000 Mitsubishi Materials Corp. .... 49,397
12,000 Mitsubishi Rayon Co., Ltd. .... 46,630
77 Mitsubishi Tokyo Financial
Group, Inc.
(MTFG) ....................... 712,734
22,000 Mitsui & Co. .................. 164,725
12,000 Mitsui Chemicals, Inc. ........ 60,047
13,000 Mitsui Fudosan Co., Ltd. ...... 155,836
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
13,000 Mitsui Mining & Smelting
Co., Ltd. ....................$ 60,642
17,000 Mitsui O.S.K. Lines Ltd. ...... 89,429
20,810 Mitsui Sumitomo Insurance
Co., Ltd. .................... 195,484
11,900 Mitsui Trust Holdings, Inc. ... 87,247
5,000 Mitsukoshi Ltd. ............... 27,769
130 Mizuho Financial Group, Inc. .. 589,745
4,000 Murata Manufacturing Co., Ltd. 228,016
100 Namco Ltd. .................... 2,804
30,000 NEC Corp. ..................... 211,153
5 Net One System Co., Ltd. 1 .... 19,475
7,000 NGK Insulators Ltd. ........... 56,518
1,000 NGK Spark Plug Co., Ltd. ...... 9,595
600 Nidec Corp. ................... 61,476
25,000 Nikko Cordial Corp. ........... 121,202
4,000 Nikon Corp. ................... 45,017
1,900 Nintendo Co., Ltd. ............ 220,272
6 Nippon Building Fund, Inc. 5 .. 43,275
16,000 Nippon Express Co., Ltd. ...... 93,846
3,000 Nippon Meat Packers, Inc. ..... 36,952
9,500 Nippon Mining Holdings, Inc. .. 46,928
25,000 Nippon Oil Corp. .............. 157,403
3,000 Nippon Sheet Glass Co., Ltd. .. 11,877
110,000 Nippon Steel Corp. ............ 230,857
91 Nippon Telegraph &
Telephone Corp. .............. 486,212
18 Nippon Unipac Holding ......... 94,194
19,000 Nippon Yusen Kabushiki Kaisha . 87,586
43,000 Nissan Motor Co., Ltd. ........ 478,019
5,000 Nisshin Seifun Group, Inc. .... 50,772
2,000 Nissin Food Products Co., Ltd. 51,689
2,900 Nitto Denko Corp. ............. 148,302
2,000 NOK Corp. 1 ................... 74,234
32,000 Nomura Holdings, Inc. ......... 473,629
300 Nomura Research Institute Ltd. 31,975
8,000 NSK Ltd. ...................... 39,811
7,000 NTN Corp. ..................... 35,412
25 NTT Data Corp. ................ 80,649
335 NTT DoCoMo, Inc. .............. 598,680
13,000 Obayashi Corp. ................ 69,935
11,000 Odakyu Electric Railway
Co., Ltd. .................... 59,680
16,000 Oji Paper Co., Ltd. ........... 102,644
9,000 Oki Electric Industry
Co., Ltd. 1 .................. 36,210
4,000 Olympus Corp. ................. 75,517
4,300 Omron Corp. ................... 100,687
1,000 Onward Kashiyama Co., Ltd. .... 16,038
600 Oracle Corp. Japan ............ 33,268
1,000 Oriental Land Co., Ltd. ....... 65,710
1,500 Orix Corp. .................... 171,837
40,000 Osaka Gas Co., Ltd. ........... 111,075
3,200 Pioneer Corp. ................. 82,702
1,600 Promise Co., Ltd. ............. 106,750
9 Rakuten, Inc. ................. 68,707
85,000 Resona Holdings, Inc. 1 ....... 151,125
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
11
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited)
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
12,000 Ricoh Co., Ltd. ...............$ 255,144
1,900 Rohm Co., Ltd. ................ 227,411
7,000 Sankyo Co., Ltd. .............. 151,721
300 Sankyo Co., Ltd. .............. 12,235
29,000 Sanyo Electric Co., Ltd. ...... 119,333
4,000 Secom Co., Ltd. ............... 169,729
800 Sega Enterprises Ltd. 1 ....... 10,264
1,200 Seiko Epson Corp. ............. 43,660
9,000 Sekisui Chemical Co., Ltd. .... 75,966
10,000 Sekisui House Ltd. ............ 110,984
7,000 Seven-Eleven Japan Co., Ltd. .. 228,383
17,000 Sharp Corp. ................... 271,558
200 Shimamura Co., Ltd. ........... 17,340
1,100 Shimano, Inc. ................. 26,211
9,000 Shimizu Corp. ................. 40,746
6,500 Shin-Etsu Chemical Co., Ltd. .. 232,324
7,000 Shinsei Bank Ltd. 1 ........... 44,650
6,000 Shionogi & Co., Ltd. .......... 103,157
7,000 Shiseido Co., Ltd. ............ 88,210
12,000 Shizuoka Bank Ltd. ............ 106,017
17,000 Showa Denko K.K. .............. 42,533
2,000 Showa Shell Sekiyu K.K. ....... 17,981
1,000 Skylark Co., Ltd. ............. 20,071
1,000 SMC Corp. ..................... 108,143
4,300 Softbank Corp. ................ 189,158
15,500 Sony Corp. .................... 583,834
2,600 Stanley Electric Co., Ltd. .... 43,462
23,000 Sumitomo Chemical Co., Ltd. ... 107,290
14,000 Sumitomo Corp. ................ 101,618
12,000 Sumitomo Electric Industries .. 122,403
2,000 Sumitomo Heavy
Industries Ltd. 1 ............ 6,269
66,000 Sumitomo Metal Industries ..... 78,028
11,000 Sumitomo Metal Mining Co. ..... 71,777
70 Sumitomo Mitsui Financial .....
Group, Inc. 5 ................ 479,861
2,000 Sumitomo Osaka Cement
Co., Ltd. .................... 5,499
8,000 Sumitomo Realty & Development
Co., Ltd. .................... 99,125
19,000 Sumitomo Trust and Banking
Co., Ltd. .................... 135,298
1,200 Suzuken Co., Ltd .............. 37,282
3,200 T&D Holdings, Inc. 1 .......... 159,831
20,000 Taiheiyo Cement Corp. ......... 49,856
17,000 Taisei Corp. .................. 64,189
2,000 Taisho Pharmaceutical Co. ..... 44,357
1,000 Taiyo Yuden Co., Ltd. ......... 14,086
5,000 Takara Holdings, Inc. ......... 40,324
6,000 Takashimaya Co., Ltd. ......... 69,395
15,000 Takeda Chemical
Industries Ltd. 1 ............ 658,480
1,020 Takefuji Corp. ................ 73,942
2,000 TDK Corp. ..................... 151,766
14,000 Teijin Ltd. ................... 52,348
3,500 Terumo Corp. .................. 87,729
2,400 THK Co., Ltd. ................. 45,420
600 TIS, Inc. ..................... 25,679
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
11,000 Tobu Railway Co., Ltd. ........$ 48,188
2,400 Toho Co. ...................... 34,884
7,200 Tohoku Electric Power Co. ..... 121,281
1,000 Tokyo Broadcasting
System, Inc. ................. 17,596
19,900 Tokyo Electric Power Co., Ltd. 451,382
3,100 Tokyo Electron Ltd. ........... 173,872
40,000 Tokyo Gas Co., Ltd. ........... 141,869
20,000 Tokyu Corp. ................... 102,461
5,000 TonenGeneral Sekiyu K.K. ...... 42,845
11,000 Toppan Printing Co., Ltd. ..... 124,502
24,000 Toray Industries, Inc. ........ 113,055
50,000 Toshiba Corp. ................. 201,164
3,000 Tosoh Corp. ................... 10,833
5,000 Tostem Corp. .................. 107,914
7,000 Toto Ltd. ..................... 73,647
3,000 Toyo Seikan Kaisha Ltd. ....... 51,524
1,000 Toyo Suisan Kaisha Ltd. ....... 13,151
6,000 Toyobo Co., Ltd. .............. 15,067
4,000 Toyota Industries Corp. ....... 96,045
48,200 Toyota Motor Corp. ............ 1,952,472
2,000 Trend Micro, Inc. ............. 88,714
11,000 Ube Industries Ltd. 1 ......... 17,138
64 UFJ Holdings, Inc. 1 .......... 282,711
200 Uni-Charm Corp. ............... 9,971
2,000 Uny Co., Ltd. ................. 25,606
2,000 Ushio, Inc. ................... 36,072
200 USS Co., Ltd. ................. 17,211
2,000 Wacoal Corp. .................. 21,262
33 West Japan Railway Co. ........ 133,071
400 World Co., Ltd. ............... 12,171
17 Yahoo Japan Corp. 1 ........... 165,147
2,000 Yakult Honsha Co., Ltd. ....... 28,960
1,724 Yamada Denki Co., Ltd. ........ 64,305
3,000 Yamaha Corp. .................. 49,214
2,000 Yamaha Motor Co., Ltd. ........ 31,141
5,000 Yamanouchi Pharmaceutical
Co., Ltd. .................... 168,171
8,000 Yamato Transport Co., Ltd. .... 130,578
2,000 Yamazaki Baking Co., Ltd. ..... 19,649
11,000 Yasuda Fire & Marine Insurance
Co., Ltd. (The) .............. 112,404
3,000 Yokogawa Electric Corp. ....... 40,004
------------
31,368,503
------------
LUXEMBOURG--0.08%
6,686 Arcelor ....................... 112,256
------------
NETHERLANDS--4.46%
26,458 ABN AMRO Holdings NV .......... 578,778
24,103 AEGON NV ...................... 290,610
4,921 Akzo Nobel NV ................ 180,991
8,444 ASM Lithography Holding NV 1 .. 142,903
748 Corio NV ...................... 31,852
1,189 DSM NV ........................ 58,341
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
12
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited)
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
1,142 Euronext NV ...................$ 31,818
4,553 European Aeronautic Defence
and Space Co. ................ 126,741
5,014 Getronics NV 1 ................ 13,726
4,726 Hagemeyer NV 1 ................ 10,005
3,929 Heineken NV ................... 129,113
133 IHC Caland NV ................. 6,186
29,653 ING Groep NV .................. 699,899
26,824 Koninklijke Ahold NV 1 ........ 210,498
34,482 Koninklijke KPN NV ............ 262,622
2,262 Koninklijke Numico NV 1 ....... 72,682
1,054 Koninklijke Vendex KBB NV ..... 19,671
638 Oce NV ........................ 10,324
22,298 Philips Electronics NV ........ 600,361
12,221 Reed Elsevier NV .............. 171,584
931 Rodamco Europe NV ............. 56,239
34,945 Royal Dutch Petroleum Co. ..... 1,793,316
5,624 TPG NV ........................ 128,501
9,678 Unilever NV-CVA ............... 660,562
3,385 Vedior NV ..................... 49,338
3,525 VNU NV ........................ 102,371
4,200 Wolters Kluwer NV-CVA 5 ....... 76,240
------------
6,515,272
------------
NEW ZEALAND--0.17%
2,790 Auckland International
Airport Ltd. ................. 11,942
12,738 Carter Holt Harvey Ltd. ....... 16,745
5,312 Contact Energy Ltd. ........... 19,768
4,491 Fisher & Paykel Appliances
Holdings Ltd. ................ 13,005
1,341 Fisher & Paykel Healthcare
Corp., Ltd. .................. 11,241
6,286 Fletcher Building Ltd. ........ 18,163
7,639 Sky City Entertainment
Group Ltd. ................... 23,237
33,229 Telecom Corp. of New
Zealand Ltd. ................. 124,080
2,131 Warehouse Group Ltd. .......... 5,752
------------
243,933
------------
NORWAY--0.45%
11,320 DNB Holding ASA 5 ............. 77,247
800 Frontline Ltd. ................ 27,526
22 Kvaerner ASA 1 ................ 345
2,570 Norsk Hydro ASA ............... 167,032
1,600 Norske Skogindustrier ASA 5.... 28,508
3,414 Orkla ASA--Class A 5 .......... 85,455
200 Schibsted ASA ................. 3,585
7,750 Statoil ASA 5.................. 98,391
4,450 Storebrand ASA 5............... 30,431
2,300 Tandberg ASA .................. 24,306
12,850 Telenor ASA 5.................. 89,356
1,450 Tomra Systems ASA 5............ 6,841
2,030 Yara International ASA 1 ...... 16,400
------------
655,423
------------
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
PORTUGAL--0.31%
34,554 Banco Commercial Portuguese,
SA (BCP) .....................$ 80,717
1,544 Banco Espirito Santo, SA (BES) 25,604
4,189 BPI-SGPS, SA (Banco BPI) ...... 15,290
6,337 Brisa Auto Estradas de
Portugal, SA ................. 45,720
1,455 CIMPOR-Cimentos de Portugal,
SGPS SA ...................... 7,081
31,752 Electricidade de Portugal, SA . 88,851
294 Jeronimo Martins, SGPS, SA 1 .. 3,293
14,866 Portugal Telecom, SA .......... 160,429
555 PT Multimedia-Servicos de
Telecomunicacoes e Multimedia,
SGPS, SA ..................... 12,154
11,612 Sonae SGPS, SA ................ 12,715
------------
451,854
------------
SINGAPORE--0.69%
14,250 Capitaland Ltd. ............... 11,334
15,000 CapitaMall Trust 1 ............ 14,804
9,200 Chartered Semiconductor
Manufacturing Ltd. 1 ......... 7,478
9,000 City Developments Ltd. ........ 28,216
27,000 ComfortDelGro Corp. Ltd. ...... 19,281
1,000 Creative Technology Ltd. 1 .... 10,508
19,349 DBS Group Holdings Ltd. ....... 161,761
3,440 Fraser and Neave Ltd. ......... 27,960
538 Haw Par Corp., Ltd. ........... 1,593
9,000 Keppel Corp., Ltd. ............ 36,837
18,000 Neptune Orient Lines Ltd. ..... 24,663
16,294 Oversea-Chinese Banking
Corp., Ltd. .................. 114,463
2,000 Overseas Union Enterprises Ltd. 8,186
15,000 Sembcorp Industries Ltd. ...... 11,669
10,000 Singapore Airlines Ltd. ....... 65,024
11,000 Singapore Exchange Ltd. ....... 10,729
25,704 Singapore Press Holdings Ltd. . 62,079
21,000 Singapore Technologies
Engineering Ltd. ............. 25,359
111,000 Singapore Telecommunications
Ltd. ......................... 144,997
21,168 United Overseas Bank Ltd. ..... 164,679
8,000 United Overseas Land Ltd. ..... 10,822
4,000 Venture Corp., Ltd. ........... 41,801
------------
1,004,243
------------
SPAIN--3.18%
4,174 Abertis Infraestructuras SA ... 72,721
552 Acciona SA .................... 34,318
980 Acerinox SA ................... 55,788
5,307 ACS, Actividades de
Construccion y
Servicios SA ................. 89,426
4,976 Altadis SA .................... 153,773
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
13
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited)
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
4,695 Amadeus Global Travel
Distribution
SA--Class A ..................$ 30,789
138 Antena 3 Television SA 1 ...... 7,303
53,965 Banco Bilbao Vizcaya SA ....... 720,908
2,604 Banco Popular Espanol SA ...... 147,066
72,245 Banco Santander Central
Hispano SA ................... 749,759
906 Corporacion Mapfre SA ......... 11,100
15,819 Endesa SA ..................... 304,859
771 Fomento de Construcciones y
Contratas SA ................. 28,573
2,895 Gas Natural SDG SA ............ 69,352
1,251 Grupo Ferrovial SA ............ 52,084
13,490 Iberdrola SA .................. 284,758
3,422 Iberia Lineas Aereas de
Espana SA .................... 9,826
2,041 Indra Sistemas SA 1 ........... 26,024
4,066 Industria de Diseno Textil SA . 93,298
524 NH Hoteles SA ................. 5,763
1,704 Promotora de Informaciones SA . 29,771
16,038 Repsol SA ..................... 351,227
2,104 Sacyr Vallehermoso SA ......... 28,798
998 Sociedad General de Aguas de
Barcelona SA--Class A ........ 16,999
657 Sogecable SA 1 ................ 26,498
1,861 Telefonica Publicidad e
Informacion SA ............... 12,340
79,022 Telefonica SA ................. 1,168,125
3,068 Union Electrica Fenosa SA ..... 65,434
1,359 Zeltia SA 1 ................... 9,309
------------
4,655,989
------------
SWEDEN--2.15%
2,674 ABB Ltd. 1 .................... 14,696
5,600 ASSA Abloy AB--Class B ........ 71,552
2,128 Atlas Copco AB--Class A ....... 78,957
1,000 Atlas Copco AB--Class B ....... 34,183
500 Castellum AB .................. 12,014
5,400 Electrolux AB--Class B ........ 103,585
4,300 Electrolux AB--Class B
Redemption Rights 1 .......... 1,507
2,100 Eniro AB ...................... 16,030
1,000 Fabege AB--Class B 1 .......... 13,009
3,700 Gambro AB--Class A ............ 35,856
1,900 Gambro AB--Class B ............ 18,286
3,200 Getinge AB--Class B ........... 37,807
8,400 Hennes & Mauritz AB--Class B .. 216,887
800 Holmen AB--Class B ............ 23,152
600 Modern Times Group Management
AB--Class B 1 ................ 11,629
200 Nobel Biocare Holding AG ...... 31,382
36,652 Nordea Bank AB ................ 263,956
1,600 OMHEX AB 1 .................... 19,169
4,000 Sandvik AB--Class A ........... 136,467
1,400 Scania AB--Class B ............ 47,578
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
5,500 Securitas AB--Class B .........$ 68,632
18,600 Skandia Forsakrings AB ........ 77,037
8,500 Skandinaviska Enskilda Bank--
Class A ...................... 122,993
6,800 Skanska AB--Class B ........... 59,804
1,800 SKF AB--Class B ............... 66,070
1,400 Ssab Svenskt Stal AB--Class A . 23,603
3,466 Svenska Cellulosa AB--Class B . 131,592
9,800 Svenska Handelsbanken--Class A 196,444
6,300 Swedish Match AB .............. 64,397
1,800 Tele2 AB--Class B ............. 78,854
247,500 Telefonaktiebolaget LM
Ericsson AB--
Class B 1 .................... 729,395
31,224 Telia AB ...................... 132,225
800 Trelleborg AB--Class B ........ 13,806
1,530 Volvo AB--Class A ............. 51,285
4,120 Volvo AB--Class B ............. 143,296
1,400 WM-Data AB--Class B ........... 3,141
------------
3,150,276
------------
SWITZERLAND--6.46%
30,572 ABB Ltd. 1 .................... 167,213
2,657 Adecco SA 1 ................... 132,383
1,458 Ciba Specialty Chemicals AG 1 . 105,008
9,715 Compagnie Finaciere
Richemont AG ................. 253,657
19,474 Credit Suisse Group 1 ......... 691,946
38 Geberit AG 1 .................. 25,335
152 Givaudan ...................... 87,991
3,377 Holcim Ltd.-Registered ........ 183,626
340 Kudelski SA-Bearer 1 .......... 9,773
346 Logitech International SA 1 ... 15,747
300 Lonza Group AG ................ 15,199
6,804 Nestle SA-Registered .......... 1,814,545
306 Nobel Biocare Holding AG ...... 47,889
39,803 Novartis AG-Registered ........ 1,755,921
11,895 Roche Holding AG-Genusss ...... 1,177,723
102 Serono SA--Class B ............ 64,259
30 SGS Societe Generale de
Surveillance Holding SA ...... 16,385
10,604 STMicroelectronics ............ 232,611
70 Sulzer AG-Registered .......... 19,898
1,100 Swatch Group AG ............... 29,336
544 Swatch Group AG--Class B ...... 70,802
5,524 Swiss Reinsurance ............. 358,813
515 Swisscom AG-Registered ........ 170,241
2,077 Syngenta AG 1 ................. 174,134
930 Synthes, Inc. ................. 106,002
18,751 UBS AG-Registered ............. 1,321,284
140 Unaxis Holding AG ............. 15,762
2,460 Zurich Financial Services AG 1 388,426
------------
9,451,909
------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
14
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited)
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
UNITED KINGDOM--22.41%
12,006 3i Group PLC ..................$ 133,359
2,932 Alliance Unichem PLC .......... 34,695
2,685 AMEC PLC ...................... 13,293
14,119 Amvescap PLC .................. 96,274
9,117 ARM Holdings PLC .............. 19,840
7,668 Associated British Ports
Holdings PLC ................. 56,215
28,408 AstraZeneca PLC ............... 1,274,552
38,732 Aviva PLC ..................... 399,668
20,108 BAA PLC ....................... 201,838
56,934 BAE Systems PLC ............... 226,375
5,041 Balfour Beatty PLC ............ 24,272
110,353 Barclays PLC .................. 940,087
4,238 Barratt Developments PLC ...... 45,307
8,776 BBA Group PLC ................. 43,369
1,312 Berkeley Group PLC (The) ...... 29,444
57,778 BG Group PLC .................. 355,991
42,596 BHP Billiton PLC .............. 369,631
9,565 BOC Group PLC ................. 160,105
12,027 Boots Group PLC ............... 150,059
368,480 BP PLC ........................ 3,254,320
8,391 BPB PLC ....................... 62,200
16,207 Brambles Industries PLC ....... 62,604
12,719 British Airways PLC 1 ......... 63,547
26,993 British American Tobacco PLC .. 418,293
9,815 British Land Co. PLC .......... 123,439
23,021 British Sky Broadcasting
Group PLC .................... 259,676
148,635 BT Group PLC .................. 535,056
9,763 Bunzl PLC ..................... 81,400
33,302 Cable & Wireless PLC 1 ........ 78,360
33,307 Cadbury Schweppes PLC ......... 287,363
4,511 Canary Wharf Group PLC 1 ...... 24,133
14,495 Capita Group PLC .............. 83,723
3,236 Carnival PLC .................. 157,158
8,205 Cattles PLC ................... 47,169
1,999 Celltech Group PLC 1 .......... 19,902
77,294 Centrica PLC .................. 314,687
2,593 Cobham PLC .................... 65,693
40,013 Compass Group PLC ............. 244,176
4,503 Daily Mail and General Trust--
Class A ...................... 59,491
4,282 Davis Service Group PLC (The) . 29,897
799 De La Rue PLC ................. 5,003
51,097 Diageo PLC .................... 688,959
39,411 Dixons Group PLC .............. 118,107
9,769 Electrocomponents PLC ......... 63,246
4,827 EMAP PLC ...................... 64,778
16,761 EMI Group PLC ................. 74,090
1,952 Enterprise Inns PLC ........... 20,355
6,402 Exel PLC ...................... 89,049
2,825 FKI PLC ....................... 6,289
21,585 Friends Provident PLC ......... 57,444
6,032 George Wimpey PLC ............. 40,365
12,181 GKN PLC ....................... 55,336
99,785 GlaxoSmithKline PLC ........... 2,019,514
1,755 Grafton Group PLC 1 ........... 20,847
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
18,535 Great Universal
Stores PLC ...................$ 284,200
5,708 Hammerson PLC ................. 72,098
14,817 Hanson PLC .................... 101,907
29,954 Hays PLC ...................... 66,680
66,040 HBOS PLC ...................... 817,386
30,836 Hilton Group PLC .............. 154,342
183,438 HSBC Holdings PLC ............. 2,727,850
3,011 ICAP PLC ...................... 14,852
6,750 IMI PLC ....................... 45,476
24,876 Imperial Chemical
Industries PLC ............... 103,985
13,253 Imperial Tobacco Group PLC .... 285,528
14,023 InterContinental Holtels
Group PLC .................... 148,134
8,534 International Power PLC 1 ..... 21,744
105,485 Invensys PLC 1 ................ 34,433
77,428 ITV PLC ....................... 162,180
3,631 Johnson Matthey PLC ........... 60,679
2,205 Kelda Group PLC ............... 20,004
4,741 Kesa Electricals PLC .......... 24,869
3,447 Kidde PLC ..................... 7,470
42,942 Kingfisher PLC ................ 222,918
8,836 Land Securities Group PLC ..... 185,719
121,519 Legal & General Group PLC ..... 209,356
5,530 Liberty International PLC ..... 76,318
93,324 Lloyds TSB Group PLC .......... 730,707
11,707 Logica PLC .................... 38,852
5,341 Man Group PLC ................. 138,315
2,837 Marconi Corp. PLC 1 ........... 35,165
42,109 Marks & Spencer Group PLC ..... 277,013
3,853 Misys PLC ..................... 13,835
4,207 Mitchells & Butlers PLC ....... 21,248
53,463 National Grid Group PLC ....... 412,544
5,403 Next PLC ...................... 139,430
15,132 Pearson PLC ................... 183,860
16,386 Peninsular & Oriental Steam ...
Navigation Co. ............... 65,375
6,049 Persimmon PLC ................. 69,329
11,860 Pilkington PLC ................ 20,970
5,634 Provident Financial PLC ....... 61,355
35,978 Prudential Corp. PLC .......... 309,593
13,088 Rank Group PLC ................ 71,205
10,936 Reckitt Benckiser PLC ......... 309,584
23,509 Reed Elsevier PLC ............. 228,516
36,549 Rentokil Initial PLC .......... 95,777
27,134 Reuters Group PLC ............. 182,314
11,382 Rexam PLC ..................... 92,524
18,489 Rio Tinto PLC ................. 444,605
818 RMC Group PLC ................. 9,004
29,705 Rolls-Royce Group PLC ......... 135,618
1,116,850 Rolls-Royce Group PLC--Class B 1 2,430
40,716 Royal & Sun Alliance Insurance
Group PLC .................... 60,917
49,529 Royal Bank of Scotland
Group PLC .................... 1,426,354
14,554 SABMiller PLC ................. 188,319
23,675 Sage Group PLC (The) .......... 80,073
28,281 Sainsbury (J.) PLC ............ 146,041
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
15
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS June 30, 2004 (Unaudited)
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
1,369 Schroders PLC .................$ 15,219
11,486 Scottish & Newcastle PLC ...... 90,454
16,060 Scottish and Southern
Energy PLC ................... 198,485
34,259 Scottish Power PLC ............ 247,738
6,649 Severn Trent PLC .............. 95,981
163,557 Shell Transport & Trading
Company PLC .................. 1,199,789
36,821 Signet Group PLC .............. 76,457
1,352 Slough Estates PLC ............ 11,003
17,490 Smith and Nephew PLC .......... 188,247
10,926 Smiths Group PLC .............. 147,914
2,055 Stagecoach Holdings PLC ....... 3,335
2,365 Tate & Lyle PLC ............... 14,153
9,873 Taylor Woodrow PLC ............ 46,015
131,669 Tesco PLC ..................... 635,756
2,812 TI Automotive Ltd.--Class A 1 . 0
16,747 Tomkins PLC ................... 83,367
47,901 Unilever PLC .................. 469,958
1,992 United Business Media PLC ..... 18,315
11,187 United Utilities PLC .......... 105,191
2,395 United Utilities PLC--Class A . 14,452
1,134,983 Vodafone Group PLC ............ 2,485,386
6,279 Whitbread PLC ................. 93,658
8,610 William Hill PLC .............. 86,503
11,088 Wolseley PLC .................. 171,924
19,303 WPP Group PLC ................. 196,033
8,986 Yell Group PLC ................ 56,181
------------
32,760,557
------------
TOTAL COMMON STOCKS
(Cost $132,350,455) ...................... 130,140,966
------------
PREFERRED STOCKS--0.35%
AUSTRALIA--0.26%
47,228 News Corp., Ltd. .............. 386,565
------------
GERMANY--0.09%
100 Porsche AG .................... 66,922
729 ProSiebenSat.1 Media AG ....... 13,171
300 RWE AG ........................ 12,085
1,250 Volkswagen AG ................. 36,134
------------
128,312
------------
TOTAL PREFERRED STOCKS
(Cost $509,885) .......................... 514,877
------------
PRINCIPAL
AMOUNT 9
----------
FOREIGN BONDS--0.01%
UNITED KINGDOM--0.01%
BG Transco Holdings PLC
GBP 2,000 2 5.078%, 12/14/09 ............. 3,665
BG Transco Holdings PLC
2,000 2 4.188%, 12/14/22 ............. 4,541
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT 9 SECURITY VALUE
- --------------------------------------------------------------------------------
BG Transco Holdings PLC
GBP 2,000 2 7.000%, 12/16/24 .............$ 4,067
------------
12,273
------------
TOTAL FOREIGN BONDS
(Cost $9,999) ............................ 12,273
------------
SHORT-TERM INSTRUMENTS--5.16%
U.S. TREASURY BILLS 3--5.16%
6,260,000 1.040%, 07/22/04 4 ........... 6,256,253
1,295,000 1.190%, 08/26/04 ............. 1,292,534
------------
7,548,787
------------
TOTAL SHORT-TERM INSTRUMENTS
(Cost $7,548,877) ........................ 7,548,787
------------
SECURITIES LENDING COLLATERAL--3.36%
INVESTMENT IN AFFILIATED
INVESTMENT COMPANIES--3.36%
4,911,668 Daily Assets Fund
Institutional 1.14% 7,8
(Cost $4,911,668) ............ 4,911,668
------------
TOTAL INVESTMENTS
(Cost $145,330,884) ............ 97.90% $143,128,571
OTHER ASSETS IN EXCESS
OF LIABILITIES .................. 2.10 3,057,321
------ ------------
NET ASSETS ........................100.00% $146,185,892
====== ============
- --------------------------------------------------------------------------------
1 Non-income producing security for the period ended June 30, 2004.
2 GBP--Great Britain Pounds.
3 Rates shown represent annualized yield at time of purchase, not a coupon rate.
4 Held as collateral for futures contracts.
5 All or a portion of this security was on loan (see Note 1). The value of all
securities loaned at June 30, 2004 amounted to $4,670,797, which is 3.19% of
total net assets.
6 Securities with same description are the same corporate entity but trade on
different stock exchanges.
7 Daily Assets Fund Institutional, an affiliated fund, is also managed by
Deutsche Asset Management, Inc. The rate shown is the annualized seven day
yield at period end.
8 Represents collateral held in connection with securities lending.
9 Principal amount is stated in the currency of the country in which the
security is denominated.
- --------------------------------------------------------------------------------
SECTOR ALLOCATION
As of June 30, 2004
(percentages are based on market value* of total investments in the Fund)
A Fund's sector allocation is subject to change.
- --------------------------------------------------------------------------------
Financial Services ......................... 26.27%
Consumer Discretionary ..................... 14.05
Industrials ................................ 9.18
Health Care ................................ 8.52
Energy ..................................... 8.11
Consumer Staples ........................... 7.83
Telecommunication Services ................. 7.26
Information Technology ..................... 6.50
Materials .................................. 6.40
Other ...................................... 5.88
------
100.00%
======
*Excluding Cash Equivalents.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
16
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
- --------------------------------------------------------------------------------
JUNE 30, 2004
- --------------------------------------------------------------------------------
ASSETS
Investments at value (cost $140,419,216) ............ $138,216,903
Investments in affiliated issuers, at value
(cost $4,911,668) .................................. 4,911,668
Cash 1 .............................................. 3,947,444
Receivable for capital shares sold .................. 144,044
Unrealized appreciation on forward foreign
currency exchange contracts ........................ 13,224
Variation margin receivable for futures contracts ... 167,699
Segregated foreign currency for futures contracts 2 . 3,598,808
Dividends and interest receivable ................... 332,513
Other assets ........................................ 2,856
------------
Total assets ........................................... 151,335,159
------------
LIABILITIES
Payable for securities purchased .................... 31,689
Payable upon return of securities loaned ............ 4,911,668
Payable for capital shares redeemed ................. 53,893
Advisory fees payable ............................... 40,731
12b-1 fees payable .................................. 2,576
Accrued expenses and other .......................... 108,710
------------
Total liabilities ...................................... 5,149,267
------------
NET ASSETS ............................................. $146,185,892
============
COMPOSITION OF NET ASSETS
Paid-in-capital ..................................... $166,279,867
Undistributed net investment income ................. 895,439
Accumulated net realized loss on investments,
futures and foreign currencies ..................... (19,213,892)
Net unrealized depreciation on investments,
futures and foreign currencies ..................... (1,775,522)
------------
NET ASSETS ............................................. $146,185,892
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(net assets divided by shares outstanding)
Class A 3 ........................................... $ 8.34
============
Class B 4 ........................................... $ 8.33
============
- --------------------------------------------------------------------------------
1 Includes foreign currency of $3,959,563 with a cost of $3,955,880.
2 Cost of segregated foreign currency is $3,432,290.
3 Net asset value, redemption price and offering price per share (based on net
assets of $133,157,402 and 15,973,459 shares outstanding at June 30, 2004 and
0.001 par value, unlimited number of shares authorized).
4 Net asset value, redemption price and offering price per share (based on net
assets of $13,028,490 and 1,563,294 shares outstanding at June 30, 2004 and
0.001 par value, unlimited number of shares authorized).
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
17
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (Unaudited)
- --------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED
JUNE 30, 2004
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends ........................................ $1,995,952
Interest ......................................... 75,130
Securities lending income ........................ 36,695
Less: foreign taxes withheld ..................... (229,468)
----------
TOTAL INVESTMENT INCOME ............................. 1,878,309
----------
EXPENSES:
Advisory fees .................................... 262,485
Administration and service fees .................. 79,384
Custodian fees ................................... 76,190
Professional fees ................................ 27,503
Transfer agent fees .............................. 24,551
Printing and shareholder reports ................. 22,204
12b-1 fees (Class B Shares) ...................... 9,245
Trustees fees .................................... 4,067
Insurance fees ................................... 1,174
Miscellaneous .................................... 465
----------
Total expenses ...................................... 507,268
Less: fee waivers ................................... (118,636)
----------
Net expenses ........................................ 388,632
----------
NET INVESTMENT INCOME ............................... 1,489,677
----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS, FUTURES AND FOREIGN
CURRENCIES
Net realized gain (loss) from:
Investment transactions ........................ (545,161)
Foreign currency transactions .................. 254,159
Futures contracts .............................. 293,787
Net change in unrealized appreciation/depreciation
on investments, futures
and foreign currencies ......................... 3,872,122
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS,
FUTURES AND FOREIGN CURRENCIES ................... 3,874,907
----------
NET INCREASE IN NET ASSETS FROM OPERATIONS .......... $5,364,584
==========
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
18
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
JUNE 30, 2004 1 DECEMBER 31, 2003
- --------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income ...................................... $ 1,489,677 $ 974,188
Net realized gain from investment and foreign
currency transactions .................................... 2,785 824,213
Net change in unrealized appreciation/depreciation on
investments and foreign currencies ....................... 3,872,122 20,091,590
------------ -----------
Net increase in net assets from operations .................... 5,364,584 21,889,991
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income:
Class A .................................................. (2,613,710) (2,732,870)
Class B .................................................. (149,879) (17,000)
------------ -----------
Total distributions ........................................... (2,763,589) (2,749,870)
------------ -----------
CAPITAL SHARE TRANSACTIONS
Net increase resulting from Class A Shares ................. 40,887,072 16,162,139
Net increase resulting from Class B Shares ................. 8,735,927 3,134,051
------------ -----------
Net increase in net assets from capital share transactions .... 49,622,999 19,296,190
------------ -----------
TOTAL INCREASE IN NET ASSETS .................................. 52,223,994 38,436,311
------------ -----------
NET ASSETS
Beginning of period ........................................ 93,961,898 55,525,587
------------ -----------
End of period (including undistributed net investment income
of $895,439 and $2,169,351, respectively) ................ $146,185,892 $93,961,898
============ ===========
- --------------------------------------------------------------------------------
1 Unaudited.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
19
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES FOR THE SIX
MONTHS ENDED
JUNE 30, FOR THE YEARS ENDED DECEMBER 31,
2004 1 2003 2002 2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE,
BEGINNING OF PERIOD ................. $ 8.21 $ 6.47 $ 8.39 $11.14 $13.60 $11.18
------ ------ ------ ------ ------ ------
INCOME (LOSS) FROM
INVESTMENT OPERATIONS
Net investment income 2 ............. 0.11 0.10 0.11 0.14 0.14 0.15
Net realized and unrealized
gain (loss) on investments,
foreign currency and
futures contracts ................. 0.22 1.94 (1.92) (2.89) (2.41) 2.92
------ ------ ------ ------ ------ ------
Total from investment
operations ........................ 0.33 2.04 (1.81) (2.75) (2.27) 3.07
------ ------ ------ ------ ------ ------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ............... (0.20) (0.30) (0.11) -- -- (0.23)
Net realized gain from
investment and futures
transactions ...................... -- -- -- -- (0.19) (0.42)
------ ------ ------ ------ ------ ------
Total distributions ................. (0.20) (0.30) (0.11) -- (0.19) (0.65)
------ ------ ------ ------ ------ ------
NET ASSET VALUE,
END OF PERIOD ....................... $ 8.34 $ 8.21 $ 6.47 $ 8.39 $11.14 $13.60
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN ................ 4.09% 4 33.35% 3 (21.60)% 3 (24.69)% 3 (16.66)% 3 27.60% 3
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period
(000s omitted) ....................$133,157 $89,956 $55,265 $94,242 $80,064 $54,499
Ratios to average net assets:
Net investment income ............. 2.55% 6 1.50% 1.45% 1.38% 1.17% 1.37%
Expenses after waivers
and/or reimbursements .......... 0.65% 6 0.65% 0.65% 0.65% 0.65% 0.65%
Expenses before waivers
and/or reimbursements .......... 0.85% 6 1.09% 0.92% 0.80% 0.92% 1.15%
Portfolio turnover rate ............. 6% 6 6% 25% 5 19% 4% 29%
- --------------------------------------------------------------------------------
1 Unaudited.
2 Calculated based on average shares method.
3 Total investment return is calculated assuming an initial investment made at
the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period and
redemption on the last day of the period. If fees for the advisor and
administrator were not waived, the total return would have been lower.
4 Total return calculated for a period of less than one year is not annualized.
5 Portfolio turnover excludes the impact of redemption in kind.
6 Annualized.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
20
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ---------------------------------------------------------------------------------------------------------------------
CLASS B SHARES FOR THE PERIOD
FOR THE SIX FOR THE APRIL 30, 2002 2
MONTHS ENDED YEAR ENDED THROUGH
JUNE 30, 2004 1 DECEMBER 31, 2003 DECEMBER 31, 2002
- ---------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE, BEGINNING OF PERIOD .............. $8.20 $6.47 $8.33
----- ----- -----
INCOME (LOSS) FROM INVESTMENT OPERATIONS
Net investment income 3 ........................ 0.10 0.04 0.06
Net realized and unrealized gain (loss)
on investments, foreign currency
and futures contracts ........................ 0.21 1.99 (1.83)
----- ----- -----
Total from investment operations .................. 0.31 2.03 (1.77)
----- ----- -----
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income .......................... (0.18) (0.30) (0.09)
----- ----- -----
Total distributions ............................... (0.18) (0.30) (0.09)
----- ----- -----
NET ASSET VALUE, END OF PERIOD .................... $8.33 $8.20 $6.47
===== ===== =====
TOTAL INVESTMENT RETURN ........................... 3.83% 5 32.97% 4 (21.17)% 5
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period
(000s omitted) ............................... $13,028 $4,006 $260
Ratios to average net assets:
Net investment income ........................ 2.55% 6 0.54% 1.26% 6
Expenses after waivers and/or
reimbursements ............................ 0.90% 6 0.90% 0.90% 6
Expenses before waivers and/or
reimbursements ............................ 1.10% 6 1.37% 1.30% 6
Portfolio turnover rate ........................ 6% 6 6% 25% 7
- --------------------------------------------------------------------------------
1 Unaudited.
2 Commencement of operations.
3 Calculated based on average shares.
4 Total investment return is calculated assuming an initial investment made at
the net asset value at the beginning of the period, reinvestment of all
distributions at net asset value during the period and redemption on the last
day of the period. If fees for the advisor and administrator were not waived,
the total return would have been lower.
5 Total return calculated for a period of less than one year is not annualized.
6 Annualized.
7 Portfolio turnover excludes the impact of redemption in-kind.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
21
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
A. ORGANIZATION
Scudder Investments VIT Funds (the 'Trust') is registered under the Investment
Company Act of 1940 (the '1940 Act'), as amended, as a diversified, open-end
management investment company. The Trust is organized as a business trust under
the laws of the Commonwealth of Massachusetts. Scudder VIT EAFE(R) Equity Index
Fund (the 'Fund') is one of the series the Trust offers to investors.
The Fund offers two classes of shares to investors: Class A Shares and Class B
Shares. Class B Shares are subject to Rule 12b-1 fees under the 1940 Act equal
to an annual rate up to 0.25% of the Class B shares average daily net assets.
All shares have equal rights with respect to voting except that shareholders
vote separately on matters affecting their rights as holders of a particular
class.
The investment objective of the Fund is to replicate, as closely as possible
(before the deduction of expenses) the performance of the MSCI EAFE(R) Index,
which measures international stock market performance.
B. VALUATION OF SECURITIES
Investments are stated at value determined as of the close of regular trading on
the New York Stock Exchange on each day the exchange is open for trading. Equity
securities are valued at the most recent sale price or official closing price
reported on the exchange (US or foreign) or over-the-counter market on which the
security is traded most extensively. Securities for which no sales are reported
are valued at the calculated mean between the most recent bid and asked
quotations on the relevant market or, if a mean cannot be determined, at the
most recent bid quotation.
Money market instruments purchased with an original or remaining maturity of
sixty days or less, maturing at par, are valued at amortized cost.
Investments in open-end investment companies are valued at their net asset value
each business day.
Securities and other assets for which market quotations are not readily
available or for which the above valuation procedures are deemed not to reflect
fair value are valued in a manner that is intended to reflect their fair value
as determined in accordance with procedures approved by the Board of Trustees.
C. SECURITIES TRANSACTIONS, INVESTMENT INCOME AND OTHER
Securities transactions are recorded on trade date. Realized gains and losses
are determined by comparing the proceeds of a sale or the cost of a purchase
with a specific offsetting transaction.
Dividend income, net of any foreign taxes withheld, is recorded on the
ex-dividend date or, in the case of certain foreign securities, upon receipt of
ex-dividend notification. Interest income, including amortization of premiums
and accretion of discounts, is accrued daily. Estimated expenses are also
accrued daily.
Distribution fees specifically attributable to a class are allocated to that
class. All other expenses, income, gains and losses are allocated among the
classes based upon their relative net assets.
The Trust accounts separately for the assets, liabilities and operations of each
of the Funds. Expenses directly attributable to a Fund are charged to that Fund,
while the expenses that are attributable to the Trust are allocated among the
Funds based upon the relative net assets of each Fund.
D. DISTRIBUTIONS
The Fund pays annual dividends from its net investment income and makes annual
distributions of any net realized capital gains to the extent they exceed
capital loss carryforwards. The Fund records dividends and distributions on its
books on the ex-dividend date.
E. FEDERAL INCOME TAXES
It is the Fund's policy to continue to qualify as a regulated investment company
under the Internal Revenue Code of 1986, as amended, and to distribute
substantially all of its taxable income to shareholders. Therefore, no federal
income taxes have been accrued.
F. FOREIGN CURRENCY TRANSLATION
The Fund maintains its accounting records in US dollars. The Fund determines the
US dollar value of foreign currency denominated assets, liabilities and
transactions by using prevailing exchange rates. In valuing assets and
liabilities, the Fund uses the prevailing exchange rate on the valuation date.
In valuing securities transactions, the receipt of income and the payment of
expenses, the Fund uses the prevailing exchange rate on the transaction date.
- --------------------------------------------------------------------------------
22
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Net realized and unrealized gains and losses on foreign currency translation
shown on the Fund's financial statements result from the sale of foreign
currencies, currency gains or losses realized between the trade and settlement
dates on securities transactions, and the difference between the amounts of
dividends, interest, and foreign withholding taxes recorded on the Fund's books
and the US dollar equivalent of the amounts actually received or paid.
When calculating realized and unrealized gains or losses on investments in
equity securities, the Fund does not separate the gain or loss attributable to
changes in the foreign currency price of the security from the gain or loss
attributable to the change in the US dollar value of the foreign currency.
G. FORWARD FOREIGN CURRENCY CONTRACTS
The Fund may use forward foreign currency contracts to manage foreign exchange
rate risk. The Fund may use these contracts to fix the US dollar value of a
securities transaction for the period between the date of the transaction and
the date the security is received or delivered or to hedge the US dollar value
of securities it already owns. The use of forward foreign currency contracts
does not eliminate fluctuations in the prices of the underlying securities, but
does establish a rate of exchange that can be achieved in the future.
The Fund may also use forward foreign currency contracts to enhance its
performance.
The Fund determines the net US dollar value of forward foreign currency
contracts using prevailing exchange rates.
H. FUTURES CONTRACTS
The Fund may buy or sell financial futures contracts on established futures
exchanges. Under the terms of a financial futures contract, the Fund agrees to
receive or deliver a specific amount of a financial instrument at a specific
price on a specific date.
The Fund's investments in financial futures contracts are designed to closely
replicate the benchmark index used by the Fund.
When the Fund enters into a futures contract, it is required to make a margin
deposit equal to a percentage of the face value of the contract. While the
contract is outstanding, the Fund may be required to make additional deposits or
may have part of its deposit returned as a result of changes in the relationship
between the face value of the contract and the value of the underlying security.
The Fund records these payments as unrealized gains or losses. When entering
into a closing transaction, the Fund realizes a gain or loss.
Futures contracts are valued at the settlement price established each day by the
board of trade or exchange on which they are traded.
I. SECURITIES LENDING
The Fund may lend securities to financial institutions. The Fund retains
beneficial ownership of the securities it has loaned and continues to receive
interest and dividends paid by the securities and to participate in any changes
in their market value. The Fund requires the borrowers of the securities to
maintain collateral with the Fund in the form of cash and/or government
securities equal to 102% of the value of domestic securities and 105% of the
value of international securities. The Fund receives compensation for lending
its securities either in the form of fees or by earning interest on invested
cash collateral. Either the Fund or the borrower may terminate the loan. The
Fund is subject to all risks associated with the investment of any cash
collateral received, including, but not limited to, interest rate, market,
credit and liquidity risk associated with such investments. At June 30, 2004,
$4,911,668 of cash collateral was invested in the Daily Assets Fund
Institutional.
J. ESTIMATES
In preparing its financial statements in conformity with accounting principles
generally accepted in the United States, management makes estimates and
assumptions. Actual results may be different.
NOTE 2--FEES AND TRANSACTIONS WITH AFFILIATES
Deutsche Asset Management, Inc. ('Advisor' or 'DeAM, Inc.'), an indirect,
wholly-owned subsidiary of Deutsche Bank AG, is the Fund's Advisor. The Fund
pays the Advisor an annual fee based on its average daily net assets, which is
calculated daily and paid monthly at the annual rate of 0.45%.
Northern Trust Investments, N.A. ('NTI') acts as investment sub-advisor for the
Fund. As the Fund's investment sub-advisor, NTI makes the Fund's investment
decisions. It buys and sells securities for the Fund and conducts the research
that leads to these purchase and sale decisions. DeAM, Inc. pays a fee to NTI
for acting as sub-advisor to the Fund.
The Advisor has contractually agreed to waive its fees and/or reimburse expenses
of the Fund, to the extent necessary, to limit all expenses to 0.65% of average
daily net assets for Class A Shares and 0.90% of average daily net assets for
Class B Shares until April 30, 2005.
- --------------------------------------------------------------------------------
23
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Effective May 1, 2002, the Advisor may recoup any of its waived investment
advisory fees within the following three years if the Fund is able to make the
repayment without exceeding its current expense limits. At June 30, 2004, the
Advisor has $813,923 remaining recoupable expenses available.
Certain officers and trustees of the Fund are also officers or directors of
DeAM, Inc. These persons are not paid by the Fund for serving in these
capacities.
NOTE 3--OTHER FEES
PFPC Inc. ('Administrator') is the Fund's Administrator and Transfer Agent. The
Fund pays the Administrator an annual fee based on its average daily net assets,
which is calculated daily and paid monthly.
State Street Bank and Trust Company ('Custodian'), is the Fund's Custodian. The
Fund pays the Custodian an annual fee.
The Fund pays PFPC Distributors, Inc. an annual fee pursuant to Rule 12b-1,
which is calculated daily and paid monthly at the annual rate of up to 0.25% of
the Class B Shares average daily net assets.
NOTE 4--CAPITAL SHARE TRANSACTIONS Transactions in capital shares were as
follows:
Class A Shares
------------------------------------------------------
For the Six Months Ended For the Year Ended
June 30, 2004 1 December 31, 2003
-------------------------- --------------------------
Shares Amount Shares Amount
------------ ------------ ----------- -------------
Sold 8,119,387 $ 66,727,057 30,781,276 $ 199,881,305
Reinvested 322,282 2,613,710 453,211 2,732,870
Redeemed (3,424,196) (28,453,695) (28,824,433) (186,452,036)
---------- ------------ ----------- -------------
Net increase 5,017,473 $ 40,887,072 2,410,054 $ 16,162,139
========== ============ =========== =============
Class B Shares
------------------------------------------------------
For the Six Months Ended For the Year Ended
June 30, 2004 1 December 31, 2003
-------------------------- --------------------------
Shares Amount Shares Amount
------------ ------------ ----------- -------------
Sold 1,240,826 $ 10,072,412 1,447,277 $10,207,762
Reinvested 18,481 149,879 2,814 17,000
Redeemed (184,703) (1,486,364) (1,001,579) (7,090,711)
--------- ------------ ---------- -----------
Net increase 1,074,604 $ 8,735,927 448,512 $ 3,134,051
========= ============ ========== ===========
- --------------------------------------------------------------------------------
1 Unaudited.
NOTE 5--PURCHASE AND SALE OF INVESTMENT SECURITIES
The aggregate cost of purchases and proceeds from sales of investments, other
than US Government and short-term obligations, for the six months ended June 30,
2004, were $60,061,406 and $3,329,202, respectively.
NOTE 6--FEDERAL INCOME TAX
At December 31, 2003, capital contributions, accumulated undistributed net
investment income, and accumulated net realized gain/(loss) from investments
have been adjusted for current period permanent book/tax differences which arose
principally from foreign currency transactions and passive foreign investment
companies. These reclassifications resulted in the following
increases/(decreases) in the components of net assets:
Undistributed Undistributed
Net Investment Net Realized Paid-in
Income Gain/Loss Capital
- -------------- ------------- -------
$1,385,816 $(1,385,816) $--
For federal income tax purposes, the tax basis of investments held at December
31, 2003 was $95,609,402. The net unrealized depreciation for all securities
based on tax cost was $7,324,444. The aggregate gross unrealized appreciation
for all investments at December 31, 2003 was $6,963,540 and the aggregate gross
unrealized depreciation for all investments was $14,287,984. The difference
between book basis and tax-basis unrealized appreciation/depreciation is
attributable to the tax deferral of losses on wash sales and passive foreign
investment companies. The tax basis of investments excludes basis adjustments
due to foreign futures, forwards and currency contracts.
Income and capital gains distributions are determined in accordance with federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States.
Distributions during the year ended December 31, 2003 were characterized as
follows for tax purposes:
Distributions paid from: 2003
- ----------------------- ----
Ordinary income $2,749,870
- --------------------------------------------------------------------------------
24
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
At December 31, 2003, the components of distributable earnings on a tax basis
were as follows:
Undistributed ordinary income $ 2,657,896
Accumulated capital loss $(18,532,339)
Unrealized appreciation/(depreciation) $ (6,820,527)
At December 31, 2003, the Fund had capital loss carryovers available as a
reduction against future net realized capital gains of $18,532,339, of which
$284,468 expires in 2008, $2,781,595 expires in 2009, $11,217,428 expires in
2010 and $4,248,848 expires in 2011.
For the year ended December 31, 2003, the Fund deferred to January 1, 2004
post-October capital losses of $120,699.
NOTE 7--LINE OF CREDIT
The Fund and several other funds and portfolios advised or administered by the
Advisor or its affiliates (the 'Participants') share in a $1.25 billion
revolving credit facility administered by J.P. Morgan Chase Bank for temporary
or emergency purposes, including the meeting of redemption requests that
otherwise might require the untimely disposition of securities. The Participants
are charged an annual commitment fee which is allocated, based upon net assets,
among each of the Participants. Interest is calculated at the Federal Funds Rate
plus 0.5%. The Fund may borrow up to a maximum of 33% of their net assets under
the agreement.
There were no significant borrowings during the six months ended June 30, 2004.
NOTE 8--OPEN FORWARD FOREIGN CURRENCY CONTRACTS
The Fund had the following open contracts at June 30, 2004:
Unrealized
Appreciation/
Contract (Depreciation)
Contracts to Receive In Exchange For Settlement Date Value (US$) (US$)
- ------------------------------------------------------------------------------------------------------------
Euro 2,390,000 $2,879,950 7/15/04 $2,907,729 $27,779
Japanese Yen 212,480,000 1,951,020 7/15/04 1,946,392 (4,628)
British Pound 679,000 1,238,496 7/15/04 1,228,569 (9,927)
- ------------------------------------------------------------------------------------------------------------
Total Net Unrealized Appreciation $13,224
- ------------------------------------------------------------------------------------------------------------
NOTE 9--OPEN FUTURES
A summary of obligations under these financial instruments at June 30, 2004 is
as follows:
Unrealized
Appreciation/
Type of Futures Expiration Contracts Position Market Value (Depreciation)
- -------------------------------------------------------------------------------------------------------------------
Hang Seng Index Futures July-04 5 Long $ 393,920 $ 12,506
IBEX PLUS Index Futures July-04 3 Long 292,488 (321)
Euro Stoxx 50 Futures September-04 167 Long 5,723,590 98,249
FTSE 100 Index Futures September-04 41 Long 3,324,343 (36,194)
Nikkei 225 Index Futures September-04 31 Long 1,856,900 80,600
Topix Index Futures September-04 15 Long 1,636,576 58,368
SPI 200 Index Futures September-04 12 Long 738,955 10,359
MIB30 Index Futures September-04 3 Long 516,997 8,878
DAX Index Futures September-04 1 Long 124,311 2,511
CAC 40 Index Futures September-04 2 Long 91,346 202
- -------------------------------------------------------------------------------------------------------------------
Total $235,158
- -------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
25
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
The use of futures contracts involves elements of market risk and risks in
excess of the amount recognized in the Statement of Assets and Liabilities. The
'market value' presented on the previous page represents the Fund's total
exposure in such contracts whereas only the net unrealized
appreciation/(depreciation) is reflected in the Fund's net assets. Risks
inherent in the use of futures contracts include 1) adverse changes in the value
of such instruments, 2) an imperfect correlation between the price of the
contracts and the underlying index and 3) the possibility of an illiquid
secondary market.
At June 30, 2004, the Fund pledged securities with a value of $1,793,887 to
cover margin requirements on open futures contracts.
NOTE 10--REGULATORY MATTERS AND LITIGATION
Since at least July 2003, federal, state and industry regulators have been
conducting ongoing inquiries and investigations ('inquiries') into the mutual
fund industry, and have requested information from numerous mutual fund
companies, including Scudder Investments. We are unable to determine what the
outcome of these inquiries will be or what the effect, if any, would be on the
portfolios/funds or their advisors. Publicity about mutual fund practices
arising from these industry-wide inquiries serves as the general basis of a
number of private lawsuits against the Scudder funds. These lawsuits, which
previously have been reported in the press, involve purported class action and
derivative lawsuits, making various allegations and naming as defendants various
persons, including certain Scudder funds, Deutsche Asset Management ('DeAM') and
its affiliates, certain individuals, including in some cases fund Trustees, and
other parties. DeAM has undertaken to bear all liabilities and expenses incurred
by the Scudder funds in connection with these lawsuits, or other lawsuits or
regulatory actions that may be filed making allegations similar to these
lawsuits regarding fund valuation, market timing, revenue sharing or other
subjects of the pending inquiries. Based on currently available information,
DeAM believes the likelihood that the pending lawsuits will have a material
adverse financial impact on a Scudder fund is remote and such actions are not
likely to materially affect its ability to perform under its investment
management agreements with the Scudder funds.
- --------------------------------------------------------------------------------
26
Scudder VIT EAFE(R) Equity Index Fund
- --------------------------------------------------------------------------------
PROXY VOTING
A description of the Fund's policies and procedures for voting proxies for
portfolio securities and information about how the Fund voted proxies related to
its portfolio securities during the 12-month period ended June 30 is available
on our Web site--scudder.com (type 'proxy voting' in the search field)--or on
the SEC's Web site--www.sec.gov. To obtain a written copy of the Fund's policies
and procedures without charge, upon request, call us toll free at (800)
621-1048.
- --------------------------------------------------------------------------------
27
ABOUT THE FUND'S ADVISOR
Deutsche Asset Management, Inc., an indirect, wholly-owned subsidiary of
Deutsche Bank AG, is the Fund's Advisor.
Scudder Investments is part of Deutsche Asset Management, which is the marketing
name in the United States for the asset management activities of Deutsche Bank
AG, Deutsche Investment Management Americas Inc., Deutsche Asset Management
Inc., Deutsche Asset Management Investment Services Ltd., Deutsche Bank Trust
Company Americas and Scudder Trust Company.
The views expressed in this report reflect those of the portfolio managers only
through the end of the period of the report as stated on the cover. The
managers' views are subject to change at any time, based on market and other
conditions and should not be construed as a recommendation.
Distributed by:
PFPC Distributors, Inc.
760 Moore Road
King of Prussia, PA 19406
[GRAPHIC OMITTED]
SCUDDER
INVESTMENTS
[GRAPHIC OMITTED]
A MEMBER OF
DEUTSCHE ASSET MANAGEMENT
Portfolio changes should not be considered
recommendations for action by individual investors.
VIT5SA (8/31/04) MARS #32453
[LOGO OMITTED] Printed on recycled paper
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Nominating and Governance Committee evaluates and nominates Board member
candidates. Fund shareholders may also submit nominees that will be considered
by the Committee when a Board vacancy occurs. Submissions should be mailed to
the attention of the Secretary of the Fund, One South Street, Baltimore, MD
21202.
ITEM 10. CONTROLS AND PROCEDURES.
(a) The Chief Executive and Financial Officers concluded that the
Registrant's Disclosure Controls and Procedures are effective
based on the evaluation of the Disclosure Controls and Procedures
as of a date within 90 days of the filing date of this report.
(b) There have been no changes in the registrant's internal control
over financial reporting that occurred during the registrant's
last half-year (the registrant's second fiscal half-year in the
case of the annual report) that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
controls over financial reporting.
ITEM 11. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: Scudder VIT EAFE Equity Index Fund
By: /s/ JULIAN SLUYTERS
-------------------
Julian Sluyters
Chief Executive Officer
Date: August 23, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
Registrant: Scudder VIT EAFE Equity Index Fund
By: /s/ JULIAN SLUYTERS
-------------------
Julian Sluyters
Chief Executive Officer
Date: August 23, 2004
By: /s/ CHARLES A. RIZZO
-------------------
Charles A. Rizzo
Chief Financial Officer
Date: August 23, 2004