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)
Sal Schiavone
Two International Place
Boston, MA 02110-4103
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(Name and address of agent for service)
registrant's telephone number, including area code: 617-295-2663
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Date of fiscal year end: December 31
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Date of reporting period: December 31, 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.
[LOGO OMITTED]
SCUDDER
INVESTMENTS
Scudder VIT Small Cap Index Fund
ANNUAL REPORT
December 31, 2004
Scudder VIT Small Cap Index Fund
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TABLE OF CONTENTS
LETTER TO SHAREHOLDERS ........................................ 3
PERFORMANCE COMPARISON ........................................ 6
SCUDDER VIT SMALL CAP INDEX FUND
Disclosure of Fund Expenses ................................ 7
Schedule of Investments .................................... 8
Statement of Assets and Liabilities ........................ 28
Statement of Operations .................................... 29
Statements of Changes in Net Assets ........................ 30
Financial Highlights ....................................... 31
Notes to Financial Statements .............................. 33
Report of Independent Registered Public Accounting Firm .... 37
Trustees and Officers of the Trust ......................... 38
Tax Information, Proxy Voting and Form N-Q ................. 42
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THIS REPORT MUST BE PRECEDED OR ACCOMPANIED
BY A PROSPECTUS. WE ADVISE YOU TO CONSIDER
THE FUND'S OBJECTIVES, RISKS, CHARGES AND
EXPENSES CAREFULLY BEFORE INVESTING. THE
PROSPECTUS CONTAINS THIS AND OTHER IMPORTANT
INFORMATION ABOUT THE FUND. PLEASE READ THE
PROSPECTUS CAREFULLY BEFORE YOU INVEST.
The Fund is not insured by the FDIC and is
not a deposit, obligation of or guaranteed
by Deutsche Bank AG. The Fund is subject to
investment risks, including possible loss of
principal amount invested. There is no
guarantee that the Fund will be able to
mirror the Russell 2000(R) Index closely
enough to track its performance. Investments
in small companies generally carry greater
risk than is associated with large
companies, such as narrower markets, limited
financial resources and less liquid stock.
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2
Scudder VIT Small Cap Index Fund
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LETTER TO SHAREHOLDERS
ALL PERFORMANCE QUOTED IN THIS REPORT IS PAST PERFORMANCE AND IS NO GUARANTEE OF
FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE WITH
CHANGING MARKET 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. 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.
FOR THE FUND'S MOST RECENT MONTH-END PERFORMANCE, CALL (800) 621-1048.
In the following interview, the portfolio management team discusses Scudder VIT
Small Cap Index Fund's market environment and performance during the 12-month
period ended December 31, 2004.
Q: HOW DID SCUDDER VIT SMALL CAP INDEX FUND PERFORM OVER THE ANNUAL PERIOD?
A: For the 12-month period ended December 31, 2004, Scudder VIT Small Cap Index
Fund returned 17.76% (Class A shares), as compared with a return of 18.33% for
its benchmark, the Russell(R) 2000 Index.1 (Past performance is no guarantee of
future results. Please see pages 4 and 6 for the performance of Class B shares
and for more complete performance information.)
Q: WHAT WERE THE PRIMARY FACTORS AFFECTING THE MARKET DURING THE PAST 12 MONTHS?
A: In 2004, the US economy continued its now 13-quarter economic expansion.
Equity prices, which reached their low point in October 2002, have recovered
over the past nine quarters. Economic growth, shifted from being
consumption-driven to being propelled by businesses and business investment.
Corporate executives remain cautiously optimistic: inflation is still relatively
under control (with the Consumer Price Index 2 running at approximately 2.3%),
and the Federal Reserve Board (the 'Fed')3 is expected to continue its 'measured
pace' policy of interest rate increases. On a trade-weighted basis, the dollar
continues to decline, but the willingness of those abroad to own US assets
remains resilient, as return on capital and profitability within the United
States is superior to Europe's and Japan's.
The year 2004 began with some positive economic momentum from the previous year.
During the first quarter, gross domestic product was a healthy 4%, but for
investors, the one missing piece of the puzzle was significant job growth (a
leading indicator of the health of the US economy). According to the
government's nonfarm payroll reports, only 50,000 new jobs were created in the
first quarter. The Fed seemed as if it might hold interest rates steady for all
of 2004.
As we moved into the second quarter, however, the rate of job growth picked up
substantially. The early April nonfarm payroll report indicating that 300,000
jobs had been added was what investors needed in order to feel that the economy
was in full recovery, and the Fed began a series of short-term interest rate
increases. Mixed in with relief that job growth had finally materialized was
anxiety that the Fed action would be prolonged. The Fed raised short-term
interest rates by 0.25% in June and at each of its four remaining meetings
through the end of the year. In the second half of the year, the US economic
expansion displayed resiliency, maintaining a 4% growth rate while weathering a
spike in oil prices up to $55 per barrel. Job growth continued at a steady pace,
and oil prices began to recede by year-end.
Consumer spending was steady throughout 2004, though disappointing earnings
results persisted in business sectors such as retail, airlines and major drug
manufacturers. Home sales and equity continued strong, with substantial price
gains throughout the year. And job
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1 The Russell 2000 Index is an unmanaged index that tracks the common stock
price movement of the 2,000 smallest companies of the Russell 3000 Index,
which measures the performance of the 3,000 largest US companies based on
total market capitalization. 'Russell 1000 Index', 'Russell 2000 Index' and
'Russell 3000 Index' are trademarks of the Frank Russell Company and has been
licensed for use by the Fund's investment advisor.
2 The Consumer Price Index is an inflationary indicator that measures the change
in the cost of a fixed basket of products and services, including housing,
electricity, food, and transportation.
3 The 7-member Board of Governors that oversees Federal Reserve Banks
establishes monetary policy (interest rates, credit, etc.) and monitors the
economic health of the country. 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 Small Cap Index Fund
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LETTER TO SHAREHOLDERS
growth remained at a sufficient pace to pickup some of
the resource slack in the labor market. As we moved into the fourth quarter,
inflationary pressures began to take hold, and concern over depreciation of the
US dollar emerged as a factor. However, a decisive conclusion to a tight
presidential contest relieved a lot of the uncertainty that investors had felt
going into the fourth quarter. The market, while not necessarily indicating a
preference for either candidate beforehand, was relieved that it would not have
to adjust to the policies of a new administration at a time when the economy was
somewhat vulnerable. At the end of December, we saw renewed confidence among
investors that the economy was on a firm footing.
After marking time for much of 2004, the stock market ended the year with a
strong finishing kick, securing a second consecutive year of gains for stocks.
The fourth quarter served as a classic example of how stock market gains
historically have tended to come in brief, intense
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SECTOR ALLOCATION
As of December 31, 2004
(percentages are based on market value* of total investments in the Fund)
A Fund's sector allocation is subject to change.
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Financials ................................. 21.90%
Information Technology ..................... 16.71
Consumer Discretionary ..................... 14.84
Industrials ................................ 14.68
Health Care ................................ 12.12
Materials .................................. 5.84
Energy ..................................... 5.19
Utilities .................................. 3.18
Consumer Staples ........................... 2.38
Other ...................................... 3.16
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100.00%
======
*Excluding Cash Equivalents & Securities Lending Collateral.
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INVESTMENT REVIEW
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CUMULATIVE TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS
Periods Ended 1 Year 3 Years 5 Years Since 1 Year 3 Years 5 Years Since
December 31, 2004 Inception 1 Inception 1
Class A (inception 8-22-97)
Class B (inception 4-30-02)
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Scudder VIT Small Cap Index Fund
Class A 17.76% 36.93% 34.36% 65.98% 17.76% 11.05% 6.08% 7.13%
Class B 17.48% n/a n/a 29.98% 17.48% n/a n/a 10.31%
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Russell 2000 Index 2 18.33% 38.55% 37.71% 68.79% 18.33% 11.48% 6.61% 7.40%
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Lipper Small Cap Core
Funds Average 3 18.34% 40.57% 69.06% 90.01% 18.34% 11.84% 10.33% 8.80%
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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 (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 Russell 2000 Index and the Lipper Small Cap Core Funds Average.
2 The Russell 2000 Index is an unmanaged index that tracks the common stock
price movement of approximately the 2,000 smallest companies in the Russell
3000 Index, which measures the performance of the 3,000 largest US
companies based on total market capitalization.
3 The Lipper Small Cap Core Funds Average tracks funds that, by portfolio
practice, invest at least 75% of their equity assets in companies with market
capitalizations (on a three-year weighted basis) of less than 250% of the
dollar-weighted median market capitalization of the S&P Small-Cap 600 Index.
Small Cap Core funds have wide latitude in the companies in which they invest.
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 Small Cap Index Fund
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LETTER TO SHAREHOLDERS
bursts. If you subtract the results of the final three months, the Russell 2000
Index would have been up a mere 4.24% for the year.
Much of the gain for 2004 can be credited to better-than-expected earnings, as
63% of the S&P 500(R) Index 1 companies' most recent quarterly earnings reports
exceeded Wall Street analysts' expectations. Also driving results was a positive
change in market psychology. Early in the year, stock market investors were
notably fretful about several issues: the war on terrorism, rising oil prices,
rising short-term interest rates, uncertainty about the outcome of the
Bush-Kerry presidential race and mixed economic signals, among other issues. In
the fourth quarter, however, oil prices stabilized, the election was resolved,
it became evident that the Fed would raise rates at a moderate pace, and
economic news turned more favorable. As a result, bearishness gradually morphed
into bullishness, and money increasingly flowed into stocks.
Q: WHICH AREAS WITHIN THE RUSSELL 2000 INDEX WERE THE BEST AND WORST
PERFORMERS?
A: As we've stated, the Russell 2000 Index generated a return of 18.33% for
the year, which included a strong fourth-quarter performance of 14.09%. Growth
stocks, as measured by the Russell 2000 Growth Index,2 were up 14.31%. Value
stocks, as measured by the Russell 2000 Value Index,3 were up 22.25%, for the
year. The large-capitalization segment of the market, as represented by the
Russell 1000 Index,4 underperformed its counterparts by generating a return
of 11.4% for the year. In 2004, the Russell 2000 Index's strong returns
resulted from the favorable performance of the financial services, up 21.49%,
and consumer discretionary, up 19.44%, sectors. Other top sectors for the annual
period included 'other energy,' up 50.73%, and integrated oils, up 45.82%.
Technology was the only sector to finish the year on the negative side, with a
decline of 1.84% for 2004.
Q: ANY FINAL THOUGHTS FOR INVESTORS?
A: Recent economic indicators point to both the manufacturing and
nonmanufacturing indices easing from their high rates of expansion to more
sustainable rates. In addition, US job growth continued at a moderate pace in
December (157,000 new jobs), as the unemployment rate remained steady at 5.4%.
And even though high energy costs and commodity inflation continued to have a
braking effect on both consumer spending and earnings growth of companies, it
would appear that US economic growth will continue at a moderate pace. While
underlying income and spending trends have remained positive for the US
consumer, some recent structural and directional changes, such as a low
household savings rate, growing consumer spending debt levels and high fuel
costs, could constrain economic progress if job creation does not continue at a
significantly strong pace.
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TEN LARGEST STOCK HOLDINGS
As of December 31, 2004
(percentages are based on total net assets of the Fund)
A Fund's holdings are subject to change.
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New Century Financial Corp. .................... 0.21%
Crown Holdings, Inc. ........................... 0.20
Laidlaw International, Inc. .................... 0.20
First BanCorp., Puerto Rico .................... 0.20
Landstar System, Inc. .......................... 0.20
Terex Corp. .................................... 0.19
Energen Corp. .................................. 0.19
Joy Global, Inc. ............................... 0.19
East West Bancorp, Inc. ........................ 0.19
Atmos Energy Corp. ............................. 0.19
Information concerning portfolio holdings of the Fund as of the most recent
month end will be posted to scudder.com on the 15th of the following month.
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1 The Standard & Poor's 500 index (S&P 500(R)) is an unmanaged index used to
portray the pattern of common stock movement of 500 large US companies.
2 The Russell 2000 Growth Index is an unmanaged capitalization-weighted
measure of 2,000 of the smallest capitalized US companies with a
greater-than-average growth orientation and whose common stocks trade on the
NYSE, AMEX and Nasdaq.
3 The Russell 2000 Value Index measures the performance of those Russell
2000(R) companies with lower price-to-book ratios and lower forecasted growth
values.
4 The Russell 1000 Index is an unmanaged, price-only index of the 1,000
largest capitalized companies that are domiciled in the United States and
whose common stocks are traded here.
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.
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 Small Cap Index Fund
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PERFORMANCE COMPARISON
Scudder VIT Small Cap Index Fund--Class A Shares and Russell 2000 Index
Growth of a $10,000 Investment (Since Inception)
[GRAPHIC OMITTED]
PLOT POINTS TO FOLLOW:
Scudder VIT
Small Cap Index Russell 1000 Index
8/22/97 $10,000 $10,000
8/31/97 10,160 10,000
9/30/97 10,870 10,732
10/31/97 10,430 10,261
11/30/97 10,350 10,194
12/31/97 10,510 10,373
1/31/98 10,320 10,209
2/28/98 11,070 10,963
3/31/98 11,510 11,415
4/30/98 11,540 11,478
5/31/98 10,940 10,859
6/30/98 10,960 10,882
7/31/98 10,110 10,000
8/31/98 8,190 8,058
9/30/98 8,830 8,689
10/31/98 9,210 9,044
11/30/98 9,690 9,518
12/31/98 10,281 10,107
1/31/99 10,383 10,241
2/28/99 9,545 9,412
3/31/99 9,678 9,558
4/30/99 10,516 10,415
5/31/99 10,679 10,567
6/30/99 11,088 11,045
7/31/99 10,853 10,742
8/31/99 10,475 10,345
9/30/99 10,444 10,347
10/31/99 10,495 10,389
11/30/99 11,119 11,009
12/31/99 12,354 12,255
1/31/00 12,141 12,058
2/29/00 14,099 14,049
3/31/00 13,184 13,123
4/30/00 12,375 12,333
5/31/00 11,641 11,614
6/30/00 12,641 12,627
7/31/00 12,226 12,220
8/31/00 13,152 13,153
9/30/00 12,769 12,766
10/31/00 12,194 12,197
11/30/00 10,949 10,944
12/31/00 11,876 11,884
1/31/01 12,464 12,503
2/28/01 11,651 11,683
3/31/01 11,073 11,112
4/30/01 11,929 11,981
5/31/01 12,218 12,275
6/30/01 12,624 12,699
7/31/01 11,983 12,012
8/31/01 11,587 11,624
9/30/01 10,025 10,059
10/31/01 10,592 10,648
11/30/01 11,416 11,472
12/31/01 12,121 12,180
1/31/02 11,986 12,053
2/28/02 11,658 11,723
3/31/02 12,585 12,665
4/30/02 12,686 12,781
5/31/02 12,133 12,213
6/30/02 11,523 11,607
7/31/02 9,794 9,855
8/31/02 9,772 9,830
9/30/02 9,060 9,124
10/31/02 9,354 9,417
11/30/02 10,178 10,257
12/31/02 9,627 9,686
1/31/03 9,353 9,418
2/28/03 9,068 9,133
3/31/03 9,182 9,251
4/30/03 10,053 10,128
5/31/03 11,090 11,215
6/30/03 11,309 11,418
7/31/03 12,011 12,132
8/30/03 12,552 12,688
9/30/03 12,322 12,453
10/31/03 13,347 13,499
11/30/03 13,808 13,979
12/31/03 14,096 14,262
1/31/04 14,694 14,881
2/28/04 14,821 15,015
3/31/04 14,959 15,155
4/30/04 14,193 14,382
5/31/04 14,412 14,611
6/30/04 15,025 15,229
7/31/04 13,996 14,204
8/31/04 13,926 14,131
9/30/04 14,574 14,794
10/31/04 14,851 15,089
11/30/04 16,123 16,397
12/31/04 16,598 16,879
Scudder VIT Small Cap Index Fund--Class A Shares $16,598
Russell 2000 Index 1 $16,879
Graph start date for Russell 2000 Index is 8/31/97.
Not depicted in graph: growth of $10,000 for B Shares from inception through
December 31, 2004:$12,998.
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AVERAGE ANNUAL TOTAL RETURNS
Since Inception
Periods Ended 1 Year 3 Years 5 Years Class A
December 31, 2004 8-22-97
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Scudder VIT Small Cap Index Fund--Class A Shares 17.76% 11.05% 6.08% 7.13%
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AVERAGE ANNUAL TOTAL RETURNS
Since Inception
Periods Ended 1 Year Class B
December 31, 2004 4-30-02
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Scudder VIT Small Cap Index Fund--Class B Shares 17.48% 10.31%
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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 (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 Russell 2000(R) Index is an unmanaged index that tracks the common stock
price movement of the 2,000 smallest companies in the Russell 3000(R) Index,
which measures the performance of the 3,000 largest US companies based on
total market capitalization.
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.
- --------------------------------------------------------------------------------
6
Scudder VIT Small Cap Index Fund
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DISCLOSURE OF FUND EXPENSES (Unaudited)
We believe it is important for you to understand the impact of fees regarding
your investment. All mutual funds have operating expenses. As a shareholder of a
mutual fund, you incur ongoing costs, which include costs for portfolio
management, administrative services, and shareholder reports (like this one),
among others. Operating expenses, which are deducted from a fund's gross income,
directly reduce the investment return of the fund. A fund's expenses are
expressed as a percentage of its average net assets. This figure is known as the
expense ratio. The following examples are intended to help you understand the
ongoing fees (in dollars) of investing in your fund and to compare these costs
with those of other mutual funds. The examples are based on an investment of
$1,000 made at the beginning of the period shown and held for the entire period.
This table illustrates your fund's costs in two ways:
ACTUAL FUND RETURN: This section helps you to estimate the actual expenses,
after any applicable fee waivers, that you paid over the period. The 'Ending
Account Value' shown is derived from the fund's ACTUAL return for the past six
month period, the 'Expense Ratio' column shows the period's annualized expense
ratio, and the 'Expenses Paid During Period' column shows the dollar amount that
would have been paid by an investor who started with $1,000 in the fund at the
beginning of the period.
You may use the information here, together with your account value, to estimate
the expenses that you paid over the period. To do so, simply divide your account
value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6),
then multiply the result by the number given for your fund in the first line
under the heading entitled 'Expenses Paid During Period.'
HYPOTHETICAL 5% RETURN: This section is intended to help you compare your fund's
costs with those of other mutual funds. It assumes that the fund had an annual
return of 5% before expenses, but that the expense ratio is unchanged. In this
case, because the return used is not the fund's actual return, the results do
not apply to your investment. This example is useful in making comparisons to
other mutual funds because the Securities and Exchange Commission requires
open-end mutual funds to calculate expenses based on an assumed 5% annual
return. You can assess your fund's costs by comparing this hypothetical example
with the hypothetical examples that appear in shareholder reports of other
funds.
Please note that the expense shown in the table are meant to highlight and help
you compare your ONGOING costs only and do not reflect any transactional costs
such as sales charges (loads), redemption fees, or exchange fees. The Scudder
VIT Small Cap Index Fund does not charge any sales loads, redemption fees or
exchange fees, but these may be present in other funds to which you compare this
data. Therefore, the hypothetical portions of the table are useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds.
Expenses Paid
Beginning Ending During Period
Account Value Account Value Expense 7/01/04-
7/01/04 12/31/04 Ratio 1 12/31/04 2
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SCUDDER VIT SMALL CAP INDEX FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Class A $1,000.00 $1,104.70 0.45% $2.38
Class B $1,000.00 $1,103.90 0.70% $3.70
HYPOTHETICAL 5% RETURN
Class A $1,000.00 $1,022.87 0.45% $2.29
Class B $1,000.00 $1,021.62 0.70% $3.56
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1 Annualized, based on the Class's most recent fiscal half-year expenses.
2 Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by the number of days in the
most recent fiscal half-year, then divided by 366.
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7
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
COMMON STOCKS--97.26%
2,100 1-800 Contacts, Inc. 1 ......$ 46,200
11,800 1-800-FLOWERS.COM, Inc. 1. .. 99,238
7,000 21st Century Insurance Group 95,200
15,400 24/7 Real Media, Inc. 1 ..... 66,682
6,100 4Kids Entertainment, Inc. 1 128,222
18,800 99 Cents Only Stores1 ....... 303,808
16,500 @Road, Inc. 1 ............... 114,015
6,600 A.C. Moore Arts & Crafts,
Inc. 1 ..................... 190,146
6,560 A.O. Smith Corp. ............ 196,406
3,900 A.S.V., Inc. 1 .............. 186,810
13,200 Aames Investment Corp. ...... 141,240
3,500 Aaon, Inc. 1 ................ 56,245
14,150 AAR Corp. 1 ................. 192,723
15,050 Aaron Rents, Inc. ........... 376,250
8,700 Abaxis, Inc. 1 .............. 126,063
3,800 ABC Bancorp ................. 79,800
31,600 Abgenix, Inc. 1 ............. 326,744
7,400 Abiomed, Inc. 1,2............ 114,256
8,300 Able Laboratories, Inc. 1 ... 188,825
14,000 ABM Industries, Inc. ........ 276,080
10,700 Acadia Realty Trust, REIT ... 174,410
11,000 Accelrys, Inc. 1 ............ 85,800
7,200 Accredited Home Lenders Holding
Co. 1 ...................... 357,696
4,300 ACE Cash Express, Inc. 1 .... 127,538
7,800 Aceto Corp. ................. 148,512
12,268 Actel Corp. 1 ............... 215,181
8,000 Action Performance Cos., Inc. 87,920
17,900 ActivCard Corp. 1 ........... 159,310
10,600 Actuant Corp. 1 ............. 552,790
16,600 Actuate Corp. 1 ............. 42,330
18,931 Acuity Brands, Inc. ......... 602,006
49,200 Adaptec, Inc. 1 ............. 373,428
5,100 ADE Corp. 1 ................. 95,472
7,700 Administaff, Inc. 1 ......... 97,097
18,300 Adolor Corp. 1 .............. 181,536
29,022 Advanced Digital Information
Corp. 1 .................... 290,800
10,806 Advanced Energy Industries 1 98,659
5,750 Advanced Marketing Services 57,845
13,800 Advanced Medical Optics,
Inc. 1 ..................... 567,732
7,500 Advanced Neuromodulation
Systems, Inc. 1 ............ 295,950
9,100 Advanta Corp.--Class B ...... 220,857
11,100 Advent Software, Inc. 1 ..... 227,328
8,200 Advisory Board Co. (The) 1 .. 302,416
11,650 ADVO, Inc. .................. 415,322
25,050 Aeroflex, Inc. 1 ............ 303,606
22,100 Aeropostale, Inc. 1 ......... 650,403
9,400 Affiliated Managers Group,
Inc. 1 ..................... 636,756
12,800 Affordable Residential Communities,
REIT ....................... 183,680
5,500 Aftermarket Technology Corp. 1 88,550
21,500 Agile Software Corp. 1 ...... 175,655
SHARES SECURITY VALUE
- --------------------------------------------------------
13,468 Agilysys, Inc. ..............$ 230,842
1,300 AgriBioTech, Inc. 1 ......... --
26,800 Airgas, Inc. ................ 710,468
5,300 AirGate PCS, Inc. 1 ......... 188,680
15,600 Airspan Networks, Inc. 1 .... 84,708
32,500 Airtran Holdings, Inc. 1 .... 347,750
43,100 AK Steel Holding Corp. 1 .... 623,657
5,500 Aksys Ltd. 1,2 .............. 30,580
6,000 Alabama National Bancorp .... 387,000
29,000 Alamosa Holdings, Inc. 1 .... 361,630
11,000 Alaska Air Group, Inc. 1 .... 368,390
6,500 Alaska Communications System
Group ...................... 56,095
10,352 Albany International Corp.
--Class A .................. 363,976
10,800 Albany Molecular Research,
Inc. 1 ..................... 120,312
14,000 Albemarle Corp. ............. 541,940
17,000 Alderwoods Group, Inc. 1 .... 193,460
12,100 Aleris International, Inc. 1 204,732
18,807 Alexander & Baldwin, Inc. ... 797,793
800 Alexander's, Inc. 1 ......... 172,000
8,700 Alexandria Real Estate Equities,
Inc. ....................... 647,454
12,135 Alexion Pharmaceuticals, Inc. 1 305,802
13,200 Alfa Corp. .................. 200,442
1,400 Alico, Inc. 1 ............... 81,928
19,800 Align Technology, Inc. 1 .... 212,850
35,200 Alkermes, Inc. 1 ............ 495,968
38,200 Allegheny Technologies, Inc. 827,794
22,700 Alliance Gaming Corp. 1,2 ... 313,487
7,000 Alliance Imaging, Inc. 1 .... 78,750
9,319 Alliance Semiconductor Corp. 1 34,480
16,100 Alloy, Inc. 1 ............... 129,927
13,300 Allscripts Healthcare Solution,
Inc. 1 ..................... 141,911
14,690 Alpharma, Inc.--Class A ..... 248,995
9,200 Altiris, Inc. 1 ............. 325,956
2,500 Ambassadors Group, Inc. ..... 89,025
7,950 Amcol International Corp. ... 159,715
9,413 Amcore Financial, Inc. ...... 302,910
6,200 Amedisys, Inc. 1 ............ 200,818
3,300 AMERCO1 ..................... 151,734
5,100 America Service Group, Inc. 1 136,527
16,800 America West Holdings Corp.--
Class B 1,2 ................ 110,544
2,600 America's Car-Mart, Inc. 1 .. 98,800
6,700 American Campus Communities,
Inc. ....................... 150,683
11,900 American Equity Investment Life
Holding Co. ................ 128,163
47,900 American Financial Realty Trust,
REIT ....................... 775,022
24,500 American Greetings Corp.--
Class A .................... 621,075
12,800 American Healthways, Inc. 1 422,912
12,935 American Home Mortgage Investment
Corp., REIT ................ 443,024
7,860 American Italian Pasta Co.--
Class A .................... 182,745
11,300 American Medical Systems
Holdings, Inc. 1 ........... 472,453
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
8
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
4,300 American Physicians Capital,
Inc. 1 .....................$ 154,886
4,400 American States Water Co. ... 114,400
9,800 American Superconductor Corp. 1 145,922
1,400 American Vanguard Corp. ..... 51,492
4,800 American Woodmark Corp. ..... 209,664
2,390 AmericanWest BanCorp. 1 ..... 48,397
9,700 AMERIGROUP Corp. 1 .......... 733,902
5,500 Ameristar Casinos, Inc. ..... 237,105
3,100 Ameron International, Inc. .. 117,490
17,200 AmerUs Group Co. ............ 779,160
10,900 AMIS Holdings, Inc. 1 ....... 180,068
9,200 AMLI Residential Properties
Trust ...................... 294,400
6,200 AMN Healthcare Services, Inc. 1 98,642
13,500 Amsurg Corp.--Class A 1 ..... 398,790
5,200 Analogic Corp. .............. 232,908
9,670 Anaren, Inc. 1 .............. 125,323
8,400 Anchor Bancorp Wisconsin, Inc. 244,860
4,400 Angelica Corp. .............. 119,020
2,700 Animas Corp. 1 .............. 42,201
11,300 Anixter International, Inc. 1 406,687
2,500 Ansoft Corp. 1 .............. 50,500
15,400 Answerthink, Inc. 1 ......... 71,764
13,700 ANSYS, Inc. 1 ............... 439,222
10,300 Anteon International Corp. 1 431,158
20,900 Anthracite Capital, Inc. .... 258,324
12,000 Antigenics, Inc. 1,2......... 121,440
15,300 Anworth Mortgage Asset Corp.,
REIT ....................... 163,863
13,500 Apogee Enterprises, Inc. .... 181,035
28,200 Apollo Investment Corp. 1 ... 425,820
28,300 Applera Corp.--Celera
Genomics Group1 ............ 389,125
9,800 Applica, Inc. 1 ............. 59,290
6,700 Applied Films Corp. 1 ....... 144,452
12,100 Applied Industrial Technologies,
Inc. ....................... 331,540
4,800 Applied Signal Technology, Inc. 169,200
19,400 Apria Healthcare Group, Inc. 1 639,230
15,500 AptarGroup, Inc. ............ 818,090
21,700 aQuantive, Inc. 1 ........... 193,998
90,300 Aquila, Inc. 1 .............. 333,207
13,100 Arbitron, Inc. 1 ............ 513,258
4,600 Arbor Realty Trust, Inc. .... 112,884
8,088 Arch Chemicals, Inc. ........ 232,773
5,800 Arctic Cat, Inc. ............ 153,816
400 Arden Group, Inc.--Class A .. 40,190
2,000 Ares Capital Corp. .......... 38,860
10,400 Argonaut Group, Inc. 1 ...... 219,752
9,931 Argosy Gaming Co. 1.......... 463,778
23,700 ARIAD Pharmaceuticals, Inc. 1 176,091
25,021 Ariba, Inc. 1 ............... 415,349
8,589 Arkansas Best Corp. ......... 385,560
11,141 Armor Holdings, Inc. 1 ...... 523,850
15,400 Array BioPharma, Inc. 1 ..... 146,608
38,700 Arris Group, Inc. 1 ......... 272,448
SHARES SECURITY VALUE
- --------------------------------------------------------
3,780 Arrow Financial Corp. .......$ 117,180
8,600 Arrow International, Inc. ... 266,514
15,807 Artesyn Technologies, Inc. 1 178,619
8,000 ArthroCare Corp. 1 .......... 256,480
30,500 ArvinMeritor, Inc. .......... 682,285
4,700 Asbury Automotive Group, Inc. 1 64,766
25,900 Ascential Software Corp. 1 .. 422,429
11,800 Ashford Hospitality Trust, REIT 128,266
17,000 AsiaInfo Holdings, Inc. 1 ... 101,320
14,700 Aspect Communications Corp. 1 163,758
5,900 Aspect Medical Systems, Inc. 1 144,314
19,796 Aspen Technologies, Inc. 1 .. 122,933
4,800 ASTA Funding, Inc. .......... 128,832
5,760 Astec Industries, Inc. 1 .... 99,130
22,300 Asyst Technologies, Inc. 1 .. 113,507
5,740 Atari, Inc. 1 ............... 16,818
14,500 AtheroGenics, Inc. 1 ........ 341,620
5,600 Atheros Communications1 ..... 57,400
13,006 ATMI, Inc. 1 ................ 293,025
33,360 Atmos Energy Corp. .......... 912,396
3,900 Atwood Oceanics, Inc. 1 ..... 203,190
8,800 Audiovox Corp.--Class A 1 ... 138,864
9,500 August Technology Corp. 1 ... 100,035
12,000 Authentidate Holding Corp. 1,2 74,280
20,200 Autobytel, Inc. 1 ........... 122,008
28,200 Avanex Corp. 1 .............. 93,342
34,500 AVANT Immunotherapeutics, Inc. 1 69,345
2,600 Avatar Holding, Inc. 1,2..... 125,060
10,700 Aviall, Inc. 1 .............. 245,779
18,071 Avista Corp. ................ 319,315
39,400 Axcelis Technologies, Inc. 1 320,322
22,500 Axonyx, Inc. 1,2............. 139,500
13,060 Aztar Corp. 1 ............... 456,055
14,733 Baldor Electric Co. ......... 405,599
2,925 Baldwin & Lyons, Inc.--Class B 78,361
700 BancFirst Corp. ............. 55,286
29,200 BancorpSouth, Inc. .......... 711,604
1,400 BancTrust Financial Group, Inc. 34,454
4,600 Bandag, Inc. ................ 229,126
36,441 Bank Mutual Corp. ........... 443,487
3,812 Bank of Granite Corp. ....... 79,671
5,600 Bank of the Ozarks, Inc. .... 190,568
19,500 BankAtlantic Bancorp, Inc.--
Class A .................... 388,050
12,400 BankUnited Financial Corp.--
Class A 1 .................. 396,180
4,300 Banner Corp. ................ 134,117
10,400 Banta Corp. ................. 465,504
6,000 Barnes Group, Inc. 159,060
4,500 Bassett Furniture Industries,
Inc. ....................... 88,312
25,000 BE Aerospace, Inc. 1 ........ 291,000
6,500 Beacon Roofing Supply, Inc. 1 129,090
1,600 Beasley Broadcast Group, Inc.--
Class A 1 .................. 28,048
5,298 Beazer Homes USA, Inc. 2..... 774,621
See Notes to Financial Statements.
- --------------------------------------------------------
9
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
4,862 bebe stores, Inc. ...........$ 131,163
5,800 Bedford Property Investors .. 164,778
5,400 BEI Technologies, Inc. ...... 166,752
3,835 Bel Fuse, Inc.--Class B ..... 129,585
19,638 Belden CDT, Inc. ............ 455,602
16,099 Benchmark Electronics, Inc. 1 548,976
6,100 Bentley Pharmaceuticals, Inc. 1 65,575
2,600 Berkshire Hills Bancorp, Inc. 96,590
8,300 Berry Petroleum Co.--Class A 395,910
41,377 Beverly Enterprises, Inc. 1 378,600
7,400 Big 5 Sporting Goods Corp. .. 215,636
10,900 Bimini Mortgage Management,
Inc.--Class A .............. 175,054
6,400 Bio-Rad Laboratories, Inc.--
Class A 1 .................. 367,168
3,900 Bio-Reference Laboratories,
Inc. 1 ..................... 67,860
7,900 BioCryst Pharmaceuticals, Inc. 1 45,662
11,900 Bioenvision, Inc. 1 ......... 106,624
9,900 BioLase Technology, Inc. 2 107,613
29,528 BioMarin Pharmaceutical, Inc. 1 188,684
10,600 BioMed Realty Trust, Inc. ... 235,426
4,915 Biosite, Inc. 1,2............ 302,469
9,906 Bioveris Corp. 1 ............ 72,413
47,400 Bisys Group, Inc. (The)1 .... 779,730
4,800 BJ's Restaurants, Inc. 1 .... 67,200
1,500 BKF Capital Group, Inc. ..... 56,850
6,274 Black Box Corp. ............. 301,277
15,100 Black Hills Corp. ........... 463,268
3,000 Blair Corp. ................. 106,980
3,200 Blount International, Inc. 1 55,744
5,100 Blue Coat Systems, Inc. 1 ... 94,911
2,300 Blue Nile, Inc. 1,2.......... 63,526
7,800 Bluegreen Corp. 1 ........... 154,674
11,200 Blyth, Inc. ................. 331,072
16,342 Bob Evans Farms, Inc. ....... 427,180
16,400 Bombay Co., Inc. (The)1 ..... 90,692
3,200 Bon-Ton Stores, Inc. (The) .. 50,400
7,100 Bone Care International, Inc. 1 197,735
31,029 Borland Software Corp. 1 .... 362,419
3,800 Boston Beer Co., Inc.--Class A 1 80,826
9,200 Boston Communications Group,
Inc. 1 ..................... 85,008
12,500 Boston Private Financial Holdings,
Inc. ....................... 352,125
16,200 Bowne & Co., Inc. ........... 263,412
19,800 Boyd Gaming Corp. ........... 824,670
6,500 Bradley Pharmaceuticals, Inc. 1 126,100
6,900 Brady Corp. ................. 431,733
17,600 Brandywine Realty Trust, REIT 517,264
13,400 Brigham Exploration Co. 1.... 120,600
5,900 Bright Horizon Family Solutions,
Inc. 1 ..................... 382,084
8,500 Brightpoint, Inc. 1 ......... 166,090
4,400 Bristol West Holdings, Inc. 88,000
21,830 Broadwing Corp. 1,2 ......... 198,871
103,900 Brocade Communications
Systems, Inc. 1 ............ 793,796
SHARES SECURITY VALUE
- --------------------------------------------------------
6,100 Brookfield Homes Corp. ......$ 206,790
26,535 Brookline Bancorp, Inc. ..... 433,051
17,327 Brooks Automation, Inc. 1 ... 298,371
9,850 Brookstone, Inc. 1 .......... 192,567
6,700 Brown Shoe Co., Inc. ........ 199,861
7,900 Bruker BioSciences Corp. 1 .. 31,837
8,700 Brush Engineered Materials,
Inc. 1 ..................... 160,950
2,800 Bryn Mawr Bank Corp. ........ 61,572
10,400 Buckeye Technologies, Inc. 1 135,304
2,200 Buckle, Inc. (The) .......... 64,900
5,600 Bucyrus International, Inc.--
Class A .................... 227,584
3,500 Buffalo Wild Wings, Inc. 1 .. 121,835
4,300 Build-A-Bear-Workshop, Inc. 1 151,145
6,400 Building Materials Holding Corp. 245,056
7,000 Burlington Coat Factory
Warehouse Corp. ............ 158,900
9,920 C&D Technologies, Inc. ...... 169,037
19,666 C-COR.net Corp. 1 ........... 182,894
9,600 Cabot Microelectronics Corp. 1 384,480
14,400 Cabot Oil & Gas Corp.--Class A 637,200
5,050 Cache, Inc. 1 ............... 91,001
11,600 CACI International, Inc.
--Class A 1 ................ 790,308
16,846 Cal Dive International, Inc. 1 686,474
7,800 Cal-Maine Foods, Inc. 2...... 94,302
10,500 Calamos Asset Management, Inc.--
Class A 1 .................. 283,500
13,300 Calgon Carbon Corp. ......... 120,764
11,100 California Micro Devices
Corp. 1 .................... 78,699
9,100 California Pizza Kitchen,
Inc. 1 ..................... 209,300
6,600 California Water Services Group 248,490
25,800 Callaway Golf Co. ........... 348,300
6,500 Callon Petroleum Co. 1....... 93,990
178,500 Calpine Corp. 1 ............. 703,290
11,203 Cambrex Corp. ............... 303,601
3,100 Camden National Corp. ....... 122,171
4,900 CancerVax Corp. 1,2 ......... 53,165
9,800 Candela Corp. 1 ............. 111,328
17,300 Capital Automotive REIT ..... 614,582
3,475 Capital City Bank Group, Inc. 145,255
2,400 Capital Corp. of the West ... 112,802
6,200 Capital Lease Funding, Inc.,
REIT ....................... 77,500
700 Capital Southwest Corp. ..... 54,964
3,300 Capital Trust, Inc.--Class A,
REIT ....................... 101,343
3,900 Capitol Bancorp Ltd. ........ 137,358
11,151 Capstead Mortgage Corp.2 .... 117,532
27,000 Capstone Turbine Corp. 1 .... 49,410
10,000 Captaris, Inc. 1 ............ 51,600
12,861 Caraustar Industries, Inc. 1 216,322
5,600 CARBO Ceramics, Inc. ........ 386,400
38,000 Cardiac Science, Inc. 1 ..... 81,320
17,179 CardioDynamics International
Corp. 1 ..................... 88,815
3,500 Carmike Cinemas, Inc. ....... 127,750
9,390 Carpenter Technology Corp. .. 548,939
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
10
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
23,900 CarrAmerica Realty Corp.,
REIT $ 788,700
9,500 Carreker Corp. 1 ............ 81,700
10,000 Carrier Access Corp. 1 ...... 106,800
1,800 Carter's, Inc. 1 ............ 61,182
7,000 Cascade Bancorp ............. 141,540
4,500 Cascade Corp. ............... 179,775
4,800 Cascade Natural Gas Corp. ... 101,760
9,300 Casella Waste Systems, Inc.--
Class A 1 .................. 136,152
19,286 Casey's General Stores, Inc. 350,041
11,700 Cash America International,
Inc. ....................... 347,841
14,700 Casual Male Retail Group,
Inc. 1 ..................... 80,115
20,400 Catalina Marketing Corp. .... 604,452
3,400 Catapult Communications
Corp. 1 .................... 82,144
19,436 Cathay Bancorp, Inc. ........ 728,850
7,700 Cato Corp. (The)--Class A ... 221,914
11,600 CB Richard Ellis Group--
Class A 1 .................. 389,180
21,400 CBRL Group, Inc. ............ 895,590
4,451 CCC Information Services
Group, Inc. 1 .............. 98,857
5,000 CDI Corp. 106,900
14,350 CEC Entertainment, Inc. 1 ... 573,569
8,700 Cedar Shopping Centers, Inc. 124,410
20,800 Cell Genesys, Inc. 1,2 ...... 168,480
26,750 Cell Therapeutics, Inc. 1,2 217,745
2,600 CellNet Data Systems, Inc. 1 --
18,000 Centene Corp. 1 ............. 510,300
4,500 Centennial Communications
Corp. 1 .................... 35,685
6,200 Center Financial Corp. ...... 124,124
3,520 Central Coast Bancorp 1 ..... 81,277
5,100 Central European Distribution
Corp. 1 .................... 150,654
5,500 Central Freight Lines, Inc. 1 34,650
7,400 Central Garden & Pet Co. 1... 308,876
12,712 Central Pacific Financial Corp. 459,793
6,450 Central Parking Corp. ....... 97,717
3,200 Central Vermont Public
Service Corp. .............. 74,432
8,800 Century Aluminum Co. 1....... 231,088
1,300 Century Bancorp, Inc.--Class A 38,350
25,328 Century Business Services,
Inc. 1 ..................... 110,430
17,100 Cepheid, Inc. 1 ............. 169,974
6,250 Ceradyne, Inc. 1 ............ 357,562
9,200 Ceres Group, Inc. 1 ......... 47,472
11,000 Cerner Corp. 1,2 ............ 584,870
6,900 CH Energy Group, Inc. ....... 331,545
26,900 Champion Enterprises, Inc. 1 317,958
4,900 Charles River Associates,
Inc. 1 ..................... 229,173
6,700 Charlotte Russe Holding,
Inc. 1 ..................... 67,670
50,900 Charming Shoppes, Inc. 1 .... 476,933
104,200 Charter Communications, Inc.--
Class A 1,2 ................ 233,408
1,500 Charter Financial Corp. ..... 65,805
19,600 CharterMac .................. 479,024
7,800 Chattem, Inc. 1 ............. 258,180
14,200 Checkpoint Systems, Inc. 1 .. 256,310
SHARES SECURITY VALUE
- --------------------------------------------------------
4,500 Chemed Corp. ................ 301,995
10,709 Chemical Financial Corp. .... 459,630
10,300 Cheniere Energy, Inc. 1 ..... 656,110
4,800 Cherokee International Corp. 1 46,128
2,400 Cherokee, Inc. .............. 84,672
7,233 Chesapeake Corp. ............ 196,448
6,300 Children's Place Retail Stores,
Inc. 1 ..................... 233,289
15,300 Chiquita Brands International,
Inc. ....................... 337,518
21,226 Chittenden Corp. ............ 609,823
35,400 Chordiant Software, Inc. 1 .. 80,712
14,175 Christopher & Banks Corp. ... 261,529
2,319 Churchill Downs, Inc. ....... 103,659
23,047 CIBER, Inc. 1 ............... 222,173
18,200 Cimarex Energy Co. 1......... 689,780
95,700 Cincinnati Bell, Inc. 1 ..... 397,155
11,100 Ciphergen Biosystems, Inc. 1 47,730
4,800 CIRCOR International, Inc. .. 111,168
36,600 Cirrus Logic, Inc. 1 ........ 201,666
18,900 Citizens Banking Corp. ...... 649,215
3,300 Citizens First Bancorp, Inc. 79,794
11,958 Citizens, Inc. 1,2........... 76,174
3,174 City Bank ................... 114,740
7,900 City Holdings Co. ........... 286,296
19,700 CKE Restaurants, Inc. 1 ..... 285,847
10,650 Clarcor, Inc. ............... 583,300
6,100 Clark, Inc. 1 ............... 94,672
2,700 Clayton Williams Energy,
Inc. 1 .................... 61,830
19,360 Cleco Corp. ................. 392,234
4,100 Cleveland-Cliffs, Inc. ...... 425,826
2,700 Clifton Savings Bancorp, Inc. 32,805
3,500 Closure Medical Corp. 1...... 68,250
191,900 CMGI, Inc. 1 ................ 489,345
77,200 CMS Energy Corp. 1 .......... 806,740
3,500 CNA Surety Corp. 1........... 46,725
50,600 CNET Networks, Inc. 1 ....... 568,238
6,100 Coachmen Industries, Inc. ... 105,896
3,028 Coastal Financial Corp. ..... 58,016
4,800 CoBiz, Inc. ................. 97,440
1,800 Coca-Cola Bottling Co.
Consolidated ............... 102,708
92,800 Coeur d'Alene Mines Corp. 1.. 364,704
16,800 Cognex Corp. ................ 468,720
2,000 Cohen & Steers, Inc. ........ 32,500
12,074 Coherent, Inc. 1 ............ 367,533
9,983 Cohu, Inc. .................. 185,284
11,228 Coinstar, Inc. 1 ............ 301,247
8,550 Coldwater Creek, Inc. 1 ..... 263,938
14,032 Collins & Aikman Corp. 1..... 61,180
9,000 Colonial Properties Trust ... 353,430
2,100 Columbia Bancorp ............ 71,799
6,818 Columbia Banking System, Inc. 170,382
11,500 Comfort Systems USA, Inc. 1 88,320
10,700 Commerce Group, Inc. ........ 653,128
16,589 Commercial Capital Bancorp,
Inc. ....................... 384,533
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
11
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
17,953 Commercial Federal Corp. ....$ 533,384
12,800 Commercial Metals Co. ....... 647,168
18,100 Commercial Net Lease Realty 372,860
2,500 Commercial Vehicle Group,
Inc. 1 ..................... 54,575
9,416 Commonwealth Telephone
Enterprises, Inc. 1 ........ 467,599
20,700 CommScope, Inc. 1 ........... 391,230
9,400 Community Bank System, Inc. 265,550
4,690 Community Banks, Inc. ....... 132,070
5,129 Community Trust Bancorp, Inc. 165,974
7,300 Compass Minerals International,
Inc. ....................... 176,879
8,593 CompuCredit Corp. 1.......... 234,933
3,100 Computer Programs and System,
Inc. ....................... 71,765
12,724 Comstock Resource, Inc. 1 ... 280,564
6,500 Comtech Telecommunications
Corp. 1..................... 244,465
12,900 Conceptus, Inc. 1 ........... 104,683
8,100 Concord Communications, Inc. 1 89,748
12,800 Concur Technologies, Inc. 1 114,048
13,461 CONMED Corp. 1 .............. 382,562
1,950 Connecticut Water Service, Inc. 51,655
13,811 Connetics Corp. 1............ 335,469
4,200 Consolidated Graphics, Inc. 1 192,780
1,600 Consolidated-Tomoka Land Co. 68,800
25,500 Continental Airlines, Inc.--
Class B 1 .................. 345,270
29,100 Cooper Tire & Rubber Co. .... 627,105
4,900 Corgentech, Inc. 1 .......... 40,572
18,000 Corillian Corp. 1............ 88,560
29,806 Corixa Corp. 1............... 108,494
15,925 Corn Products International,
Inc. ....................... 852,943
6,600 Cornell Cos., Inc. 1 ........ 100,188
24,400 Cornerstone Realty Income Trust,
Inc. ....................... 243,512
13,200 Corporate Office Properties
Trust, REIT ................ 387,420
4,400 Correctional Properties Trust,
REIT ....................... 127,072
14,493 Corrections Corp. of America,
REIT 1 586,242
5,800 Corus Bankshares, Inc. ...... 278,458
2,500 Corvel Corp. 1 .............. 66,950
6,400 Cosi, Inc. 1 ................ 38,720
9,801 Cost Plus, Inc. 1 ........... 314,906
6,900 CoStar Group, Inc. 1 ........ 318,642
1,900 Courier Corp. ............... 98,648
16,600 Cousins Properties, Inc., REIT 502,482
7,500 Covansys Corp. 1 114,750
5,000 Covenant Transport, Inc.--
Class A 1................... 104,100
6,500 Crawford & Co.--Class B ..... 48,750
38,400 Cray, Inc. 1 ................ 178,944
37,380 Credence Systems Corp. 1,2 .. 342,027
3,900 Credit Acceptance Corp. 1 ... 99,255
48,133 Crompton Corp. .............. 567,969
9,500 Cross Country Healthcare, Inc. 1 171,760
70,200 Crown Holdings, Inc. 1 ...... 964,548
6,700 Crown Media Holdings, Inc.--
Class A 1 .................. 57,620
15,400 CRT Properties, Inc. ........ 367,444
SHARES SECURITY VALUE
- --------------------------------------------------------
21,400 CSG Systems International,
Inc. 1 ..................... 400,180
17,560 CSK Auto Corp. 1 ............ 293,954
1,850 CSS Industries, Inc. ........ 58,756
8,200 CT Communications, Inc. ..... 100,860
13,900 CTI Molecular Imaging, Inc. 1 197,241
13,790 CTS Corp. ................... 183,269
5,900 Cubic Corp. ................. 148,503
21,957 Cubist Pharmaceuticals, Inc. 1 259,751
19,500 Cumulus Media, Inc.--Class A 1 294,060
7,700 CUNO, Inc. 1 ................ 457,380
20,000 CuraGen Corp. 1,2 ........... 143,200
22,600 Curis, Inc. 1 ............... 117,972
9,300 Curtiss-Wright Corp. ........ 533,913
13,522 CV Therapeutics, Inc. 1 ..... 311,006
16,527 CVB Financial Corp. ......... 438,957
7,600 CyberGuard Corp. 1 .......... 47,880
7,351 Cyberonics, Inc. 1,2......... 152,313
3,700 CyberOptics Corp. 1 ......... 55,019
13,500 CyberSource Corp. 1 ......... 96,525
14,200 Cymer, Inc. 1 ............... 419,468
12,000 Cypress Bioscience, Inc. 1 .. 168,720
16,900 Cytec Industries, Inc. ...... 868,998
7,500 CYTOGEN Corp. 1 ............. 86,400
5,000 D&E Communications, Inc. .... 60,250
6,600 Daktronics, Inc. 1 .......... 164,274
16,000 Danielson Holding Corp. 1 ... 135,200
28,500 Darling International, Inc. 1 124,260
4,106 Datascope Corp. ............. 162,967
5,700 Dave & Buster's, Inc. 1 ..... 115,140
8,700 DDi Corp. 1 ................. 27,666
1,200 Deb Shops, Inc. ............. 30,048
4,200 Deckers Outdoor Corp. 1,2 ... 197,358
19,700 Decode Genetics, Inc. 1 ..... 153,857
1,840 Del Laboratories, Inc. 1 .... 63,940
10,854 Delphi Financial Group, Inc.--
Class A .................... 500,912
41,600 Delta Air Lines, Inc. 1,2.... 311,168
14,368 Delta and Pine Land Co. ..... 391,959
9,300 Delta Petroleum Corp. 1 ..... 145,824
3,100 Deltic Timber Corp. ......... 131,595
22,400 Denbury Resources, Inc. 1 ... 614,880
21,900 Dendreon Corp. 1,2 .......... 236,082
15,824 Dendrite International, Inc. 1 306,986
4,900 Department 56, Inc. 1 ....... 81,585
8,800 DHB Industries, Inc. 1 ...... 167,552
8,600 Diagnostic Products Corp. ... 473,430
10,900 DiamondCluster International,
Inc. 1 ..................... 156,197
11,500 Dick's Sporting Goods, Inc. 1 404,225
6,500 Digene Corp. 1 .............. 169,975
10,100 Digi International, Inc. 1 .. 173,619
5,841 Digimarc Corp. 1 ............ 54,438
15,522 Digital Insight Corp. 1 ..... 285,605
4,000 Digital Reality Trust, Inc. 53,880
12,700 Digital River, Inc. 1 ....... 528,447
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
12
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
7,500 Digital Theater Systems,
Inc. 1 .....................$ 150,975
31,500 Digitas, Inc. 1 ............. 300,825
14,669 Dime Community Bancorp, Inc. 262,722
14,700 DiMon, Inc. ................. 98,784
4,000 Diodes, Inc. 1 .............. 90,520
8,060 Dionex Corp. 1 .............. 456,760
7,600 Direct General Corp. ........ 243,960
21,700 Discovery Laboratories, Inc. 1 172,081
11,000 Ditech Communications Corp. 1 164,450
8,600 Diversa Corp. 1 ............. 75,164
6,200 DJ Orthopedics, Inc. 1 ...... 132,804
40,600 Dobson Communications Corp.--
Class A 1 .................. 69,832
9,100 Dollar Thrifty Automotive Group,
Inc. 1 ..................... 274,820
2,700 Dominion Homes, Inc. 1 ...... 68,102
8,100 Domino's Pizza, Inc. ........ 144,180
1,300 Donegal Group, Inc.--Class A 29,809
19,900 Dot Hill Systems Corp. 1 .... 156,016
44,600 DoubleClick, Inc. 1 ......... 346,988
7,100 DOV Pharmaceutical, Inc. 1 .. 128,155
3,240 Dover Downs Gaming &
Entertainment, Inc. ........ 42,444
3,200 Dover Motorsports, Inc. ..... 18,336
6,900 Downey Financial Corp. ...... 393,300
10,500 Dress Barn, Inc. 1 .......... 184,800
3,500 Drew Industries, Inc. 1 ..... 126,595
2,400 Dril-Quip, Inc. 1 58,224
9,251 DRS Technologies, Inc. 1 .... 395,110
13,500 drugstore.com, Inc. 1 ....... 45,900
12,400 DSP Group, Inc. 1 ........... 276,892
2,200 Ducommun, Inc. 1 ............ 45,870
7,061 DuPont Photomasks, Inc. 1 ... 186,481
34,600 Duquesne Light Holdings, Inc. 652,210
5,400 Duratek, Inc. 1 ............. 134,514
15,700 Durect Corp. 1 .............. 51,496
7,000 DUSA Pharmaceuticals, Inc. 1 100,100
11,800 Dyax Corp. 1 ................ 85,196
19,166 Dycom Industries, Inc. 1 .... 584,946
26,400 E.piphany, Inc. 1 ........... 127,512
7,900 Eagle Materials, Inc. ....... 682,165
56,500 EarthLink, Inc. 1 ........... 650,880
21,870 East West Bancorp, Inc. ..... 917,665
7,800 EastGroup Properties, Inc. .. 298,896
11,000 Echelon Corp. 1 ............. 92,840
15,206 Eclipsys Corp. 1 ............ 310,659
8,000 eCollege.com, Inc. 1 ........ 90,880
7,400 Edge Petroleum Corp. 1 ...... 107,892
6,700 EDO Corp. ................... 212,725
4,800 Educate, Inc. 1 ............. 63,552
6,500 Education Lending Group,
Inc. 1,2.................... 100,815
18,500 eFunds Corp. 1 .............. 444,185
13,729 EGL, Inc. 1 ................. 410,360
19,700 El Paso Electric Co. 1....... 373,118
SHARES SECURITY VALUE
- --------------------------------------------------------
6,500 Electro Rent Corp. 1 ........$ 92,495
12,156 Electro Scientific Industries,
Inc. 1 ..................... 240,203
4,500 Electronics Boutique Holdings
Corp. 1 .................... 193,230
22,600 Electronics for Imaging,
Inc. 1 ..................... 393,466
9,100 Elizabeth Arden, Inc. 1 ..... 216,034
9,060 ElkCorp ..................... 310,033
10,200 Embarcadero Technologies,
Inc. 1 ..................... 95,982
900 EMC Insurance Group, Inc. ... 19,476
5,300 EMCOR Group, Inc. 1 ......... 239,454
22,000 Emmis Communications Corp.--
Class A 1 .................. 422,180
11,700 Empire District Electric Co. 265,356
5,000 Empire Resorts, Inc. 1,2..... 55,750
4,700 EMS Technologies, Inc. 1 .... 78,114
32,700 Emulex Corp. 1 .............. 550,668
11,200 Encore Acquisition Co. 1..... 390,992
4,100 Encore Capital Group, Inc. 1 97,498
15,800 Encore Medical Corp. 1 ...... 107,282
7,850 Encore Wire Corp. 1 ......... 104,640
23,146 Encysive Pharmaceuticals,
Inc. 1 ..................... 229,840
11,000 Endocardial Solutions, Inc. 1 128,700
15,800 Energen Corp. ............... 931,410
9,409 Energy Conversion Devices,
Inc. 1,2 ................... 181,782
11,700 Energy Partners Ltd. 1....... 237,159
1,200 EnergySouth, Inc. ........... 33,648
8,625 Engineered Support Systems,
Inc. ....................... 510,772
10,300 Ennis Business Forms, Inc. .. 198,275
8,900 EnPro Industries, Inc. 1 .... 263,173
1,200 Enstar Group, Inc. (The)1 ... 75,000
19,300 Entegris, Inc. 1 ............ 192,035
79,200 Enterasys Networks, Inc. 1 .. 142,560
8,975 Entertainment Properties Trust 399,836
16,300 Entravision Communications Corp.--
Class A 1 .................. 136,105
21,500 Entrust, Inc. 1 ............. 81,485
9,237 Enzo Biochem, Inc. 1 ........ 179,844
19,700 Enzon, Inc. 1 ............... 270,284
15,800 Epicor Software Corp. 1 ..... 222,622
7,000 Epiq Systems, Inc. 1 ........ 102,480
10,200 EPIX Medical, Inc. 1 ........ 182,682
3,400 Equinix, Inc. 1 ............. 145,316
22,200 Equity Inns, Inc., REIT ..... 260,628
8,200 Equity Lifestyle Properties,
Inc. ....................... 293,150
14,750 Equity One, Inc., REIT ...... 350,017
17,000 eResearch Technology, Inc. 1 269,450
2,200 Escalade, Inc. .............. 29,392
4,867 ESCO Electronics Corp. 1 .... 373,056
11,800 eSPEED, Inc.--Class A 1 ..... 145,966
16,919 ESS Technology, Inc. 1 ...... 120,294
10,300 Essex Property Trust, Inc. .. 863,140
9,200 Esterline Technologies Corp. 1 300,380
12,600 Ethan Allen Interiors, Inc. 504,252
10,300 Euronet Worldwide, Inc. 1 ... 268,006
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
13
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
2,700 Exactech, Inc. 1 ............$ 49,383
18,282 Exar Corp. 1 ................ 259,422
4,135 Excel Technology, Inc. 1 .... 107,510
23,500 Exelixis, Inc. 1 ............ 223,250
9,800 Exide Technologies 1......... 135,044
1,500 Exponent, Inc. 1 ............ 41,235
14,900 ExpressJet Holdings, Inc. 1 . 191,912
10,700 Extra Space Storage, Inc. ... 142,631
41,700 Extreme Networks, Inc. 1 .... 273,135
23,400 F.N.B. Corp. ................ 476,424
13,800 F5 Networks, Inc. 1 ......... 672,336
7,800 FactSet Research Systems, Inc. 455,832
12,983 FalconStor Software, Inc. 1,2 124,247
1,900 Farmer Bros. Co. ............ 46,056
1,700 Farmers Capital Bank Corp. 70,040
5,100 FARO Technologies, Inc. 1 159,018
4,216 FBL Financial Group, Inc.--
Class A .................... 120,367
4,400 Federal Agricultural Mortgage
Corp.--Class C ............. 102,520
17,930 Federal Signal Corp. ........ 316,644
10,202 FEI Co. 1.................... 214,242
19,431 FelCor Lodging Trust, Inc. 1 284,664
19,232 Ferro Corp. ................. 445,990
6,400 Fidelity Bankshares, Inc. ... 273,664
16,328 FileNet Corp. 1 ............. 420,609
7,100 Financial Federal Corp. ..... 278,320
2,200 Financial Institutions, Inc. 51,150
9,500 FindWhat.com 1 .............. 168,435
74,900 Finisar Corp. 1 ............. 170,772
15,200 Finish Line, Inc.--Class A .. 278,160
4,350 First Bancorp, North Carolina 118,189
15,000 First BanCorp., Puerto Rico . 952,650
5,100 First Busey Corp. ........... 106,437
6,000 First Cash Financial Services,
Inc. 1 ..................... 160,260
14,100 First Charter Corp. ......... 368,997
2,700 First Citizens BancShares, Inc.--
Class A .................... 400,275
25,982 First Commonwealth Financial
Corp. ...................... 399,863
6,300 First Community Bancorp ..... 269,010
3,749 First Community Bancshares,
Inc. ....................... 135,264
11,342 First Financial Bancorp ..... 198,485
4,790 First Financial Bankshares, Inc. 214,640
4,110 First Financial Corp., Indiana 143,973
4,200 First Financial Holdings .... 137,508
39,900 First Health Group Corp. 1 .. 746,529
10,300 First Horizon Pharmaceutical
Corp. 1 .................... 235,767
2,900 First Indiana Corp. ......... 65,279
18,200 First Industrial Realty Trust,
Inc. ....................... 741,286
7,628 First Merchants Corp. ....... 215,872
21,000 First Midwest Bancorp, Inc. 762,090
25,965 First National Bankshares of
Florida .................... 620,563
38,017 First Niagara Financial Group,
Inc. 530,337
2,550 First Oak Brook Bancshares,
Inc. ....................... 82,646
600 First of Long Island Corp. .. 30,270
SHARES SECURITY VALUE
- --------------------------------------------------------
3,900 First Place Financial Corp. $ 87,321
6,400 First Republic Bank ......... 339,200
3,981 First Source Corp. .......... 101,555
3,500 First State Bancorp ......... 128,660
7,500 FirstFed Financial Corp. 1 .. 389,025
1,900 Fisher Communications, Inc. 1 92,872
15,350 Flagstar Bancorp, Inc. ...... 346,910
7,600 Flanders Corp. 1 ............ 72,960
20,077 Fleetwood Enterprises, Inc. 1 270,236
7,900 Florida East Coast Industries,
Inc. ....................... 356,290
13,425 Flowers Foods, Inc. ......... 423,962
21,000 Flowserve Corp. 1 ........... 578,340
6,600 Flushing Financial Corp. .... 132,396
17,754 FLYi, Inc. 1,2............... 31,425
14,100 FMC Corp. 1 ................. 681,030
1,400 FNB Corp. ................... 39,704
19,200 Forest Oil Corp. 1 .......... 609,024
12,400 FormFactor, Inc. 1 .......... 336,536
6,000 Forrester Research, Inc. 1 .. 107,640
8,025 Forward Air Corp. 1 ......... 358,718
1 Fourthstage Technologies, Inc. 1 --
500 Foxhollow Technologies, Inc. 1 12,295
4,200 FPIC Insurance Group, Inc. 1 148,596
2,300 Franklin Bank Corp., Houston 1 41,975
5,500 Franklin Electric Co., Inc. 232,430
17,468 Freds, Inc.--Class A ........ 303,943
16,629 Frontier Airlines, Inc. 1 ... 189,737
6,125 Frontier Financial Corp. .... 236,486
11,909 Frontier Oil Corp. .......... 317,494
14,200 FSI International, Inc. 1 ... 66,314
15,900 FTI Consulting, Inc. 1 ...... 335,013
16,400 FuelCell Energy, Inc. 1,2.... 162,360
12,348 Fuller (H.B.) Co. ........... 352,041
19,300 Furniture Brands International,
Inc. ....................... 483,465
14,900 FX Energy, Inc. 1,2.......... 174,032
8,072 G & K Services, Inc.--Class A 350,486
3,500 Gabelli Asset Management, Inc.--
Class A 2 .................. 169,820
13,720 Gables Residential Trust .... 491,039
14,800 GameStop Corp.--Class B1 .... 331,668
4,500 Gander Mountain Co. 1........ 57,735
8,650 Gardner Denver Machinery,
Inc. 1 ..................... 313,909
28,085 Gartner Group, Inc.--Class A 1 349,939
87,700 Gateway, Inc. 1 ............. 527,077
21,500 GATX Corp. .................. 635,540
11,500 Gaylord Entertainment, Inc. 1 477,595
2,575 GB&T Bancshares, Inc. ....... 62,109
22,800 Genaera Corp. 1 ............. 77,976
21,000 GenCorp, Inc. ............... 389,970
29,600 Genelabs Technologies, Inc. 1 35,520
3,300 Genencor International, Inc. 1 54,120
17,450 General Cable Corp. 1 ....... 241,683
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
14
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
17,600 General Communication--
Class A 1 ..................$ 194,304
8,100 Genesco, Inc. 1 ............. 252,234
7,000 Genesee & Wyoming, Inc.--
Class A 1 .................. 196,910
9,150 Genesis HealthCare Corp. 1 .. 320,525
12,700 Genesis Microchip, Inc. 1 ... 205,994
5,500 Genlyte Group 1 ............. 471,240
29,400 Genta, Inc. 1 ............... 51,744
12,200 Gentiva Health Services,
Inc. 1 ..................... 203,984
1 Genzyme Corp. 1 ............. 52
3,900 Geo Group, Inc. (The)1 ...... 103,662
11,047 Georgia Gulf Corp. .......... 550,141
1,465 German American Bancorp ..... 23,587
20,700 Geron Corp. 1,2 ............. 164,979
5,700 Getty Realty Corp. .......... 163,761
10,800 Gevity HR, Inc. ............. 222,048
5,400 Giant Industries, Inc. 1 .... 143,154
11,250 Gibraltar Industries, Inc. .. 265,725
11,700 Glacier Bancorp, Inc. ....... 398,268
5,400 Gladstone Capital Corp.5 .... 127,980
13,500 Glatefelter (P.H.) Co. ...... 206,280
9,551 Glenborough Realty Trust, Inc. 203,245
13,400 Glimcher Realty Trust ....... 371,314
10,000 Global Imaging Systems, Inc. 1 395,000
36,400 Global Industries Ltd. 1..... 301,756
17,100 Global Power Equipment Group,
Inc. 1 ..................... 168,264
2,000 Global Signal, Inc. ......... 55,080
15,500 GMH Communities Trust ....... 218,550
19,300 Gold Bancorp, Inc. .......... 282,166
5,861 Golden Telecom, Inc. ........ 154,848
9,100 Goody's Family Clothing, Inc. 83,174
60,900 Goodyear Tire & Rubber Co.1,2 892,794
2,250 Gorman-Rupp Co. ............. 51,750
11,000 Government Properties
Trust, Inc., REIT .......... 108,460
37,898 Graftech International Ltd. 1 358,515
1,800 Gramercy Capital Corp. ...... 37,080
14,750 Granite Construction, Inc. .. 392,350
23,600 Graphic Packaging Corp. 1 ... 169,920
16,100 Gray Television, Inc. ....... 249,550
1,000 Great American Financial
Resources, Inc. ............ 17,370
9,568 Great Atlantic & Pacific Tea
Co. 1....................... 98,072
19,400 Great Lakes Chemical Corp. .. 552,706
3,200 Great Southern Bancorp, Inc. 112,000
22,800 Greater Bay Bancorp ......... 635,664
2,900 Greenbrier Cos., Inc. (The) . 98,165
3,700 Greenfield Online, Inc. 1 ... 81,363
3,200 Greg Manning Auctions, Inc. 1,2 39,616
350 Grey Global Group ........... 384,997
77,500 Grey Wolf, Inc. 1 ........... 408,425
6,200 Grief Bros Corp.--Class A ... 347,200
10,070 Griffon Corp. 1 ............. 271,890
6,800 Group Automotive, Inc. 1 .... 214,200
SHARES SECURITY VALUE
- --------------------------------------------------------
9,100 GSI Commerce, Inc. 1 ........$ 161,798
5,600 Guess, Inc. 1 ............... 70,280
19,100 Guilford Pharmaceuticals, Inc. 1 94,545
9,400 Guitar Center, Inc. 1 ....... 495,286
4,600 Gulf Island Fabrication ..... 100,418
5,300 GulfMark Offshore, Inc. 1 ... 118,031
14,400 Gymboree Corp. 1 ............ 184,608
7,000 Haemonetics Corp. 1 ......... 253,470
12,082 Hain Celestial Group, Inc. 1 249,735
10,600 Hancock Fabrics, Inc. ....... 109,922
12,300 Hancock Holding Co. ......... 411,558
10,055 Handleman Co. ............... 215,981
11,000 Hanger Orthopedic Group, Inc. 1 89,100
7,121 Hanmi Financial Corp. ....... 255,929
29,400 Hanover Compressor Co. 1..... 415,422
3,200 Hansen Natural Corp. 1 ...... 116,512
7,701 Harbor Florida Bancorp, Inc. 266,532
13,100 Harland (John H.) Co. ....... 472,910
7,400 Harleysville Group, Inc. .... 176,638
10,046 Harleysville National Corp. . 267,224
27,800 Harmonic, Inc. 1 ............ 231,852
7,700 Harris & Harris Group, Inc. 1 126,126
24,500 Harris Interactive, Inc. 1 .. 193,550
10,600 Hartmarx Corp. 1 ............ 82,362
15,000 Harvest Natural Resources,
Inc. 1 ..................... 259,050
6,500 Haverty Furniture Cos., Inc. 120,250
17,500 Hayes Lemmerz International,
Inc. 1 ..................... 154,525
12,900 Headwaters, Inc. 1 .......... 367,650
20,800 Healthcare Realty Trust, Inc. 846,560
7,050 Healthcare Services Group,
Inc. ....................... 146,922
9,400 HealthExtras, Inc. 1 ........ 153,220
19,536 Heartland Express, Inc. ..... 438,974
4,050 Heartland Financial USA, Inc. 81,446
45,500 Hecla Mining Co. 1........... 265,265
6,400 HEICO Corp. ................. 144,576
7,700 Heidrick & Struggles
International, Inc. 1 ....... 263,879
12,305 Helix Technology Corp. ...... 213,984
20,000 Helmerich & Payne, Inc. ..... 680,800
48,000 Hercules, Inc. 1 ............ 712,800
9,200 Heritage Property Investment
Trust, REIT ................ 295,228
6,600 Herley Industries, Inc. 1 ... 134,244
12,600 Hexcel Corp. 1 .............. 182,700
10,137 Hibbett Sporting Goods, Inc. 1 269,746
17,100 Highland Hospitality Corp.,
REIT ....................... 192,204
23,600 Highwoods Properties, Inc. .. 653,720
13,300 Hilb, Rogal and Hobbs Co. ... 481,992
23,600 Hollinger International, Inc. 370,048
7,300 Hollis-Eden Pharmaceuticals,
Inc. 1,2.................... 68,766
8,400 Holly Corp. ................. 234,108
19,600 Hollywood Entertainment
Corp. 1 .................... 256,564
9,400 Hologic, Inc. 1 ............. 258,218
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
15
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
15,100 Home Properties of New York,
Inc. .......................$ 649,300
18,400 HomeBanc Corp. .............. 178,112
41,000 HomeStore, Inc. 1 ........... 124,230
3,900 Hooker Furniture Corp. ...... 88,530
23,400 Hooper Holmes, Inc. ......... 138,528
18,368 Horace Mann Educators Corp. . 350,461
4,700 Horizon Financial Corp. ..... 96,726
18,275 Hot Topic, Inc. 1 ........... 314,147
5,900 Houston Exploration Co. 1.... 332,229
3,500 Hub Group, Inc.--Class A 1 .. 182,770
4,900 Hudson Highland Group, Inc. 1 141,120
10,900 Hudson River Bancorp, Inc. .. 215,711
51,200 Human Genome Sciences, Inc. 1 615,424
10,300 Hutchinson Technology 1 ..... 356,071
7,800 Hydril Co. 1................. 354,978
24,600 Hypercom Corp. 1 ............ 145,632
15,480 Hyperion Solutions Corp. 1 .. 721,678
8,500 I-Flow Corp. 1 .............. 154,955
3,500 Iberiabank Corp. ............ 232,260
5,400 ICU Medical, Inc. 1,2........ 147,636
19,100 IDACORP, Inc. ............... 583,887
39,200 Identix, Inc. 1 ............. 289,296
21,600 IDEX Corp. .................. 874,800
7,700 IDX Systems Corp. 1 ......... 265,342
7,700 IHOP Corp. .................. 322,553
5,100 II-VI, Inc. 1 ............... 216,699
9,700 Illumina, Inc. 1 ............ 91,956
5,900 Imagistics International,
Inc. 1 ..................... 198,594
13,500 Imation Corp. ............... 429,705
17,363 Immucore, Inc. 1 ............ 408,192
16,479 ImmunoGen, Inc. 1 ........... 145,674
18,700 Immunomedics, Inc. 1 ........ 56,848
28,800 Impac Mortgage Holdings, Inc.,
REIT ....................... 652,896
20,000 Impax Laboratories, Inc. 1 .. 317,600
18,541 In Focus Systems, Inc. 1 .... 169,836
26,100 Incyte Genomics, Inc. 1 ..... 260,739
6,300 Independent Bank Corp.--
Massachusetts .............. 212,625
8,841 Independent Bank Corp.--Michigan 263,727
20,300 Indevus Pharmaceuticals, Inc. 1 120,988
9,600 Infinity Property & Casual Corp. 337,920
7,800 Infocrossing, Inc. 1,2....... 132,054
19,800 Infonet Services Corp.--
Class B 1 .................. 39,996
37,900 Informatica Corp. 1 ......... 307,748
12,800 InfoSpace, Inc. 1 ........... 608,640
11,200 InfoUSA, Inc. 1 ............. 125,328
7,200 Ingles Markets, Inc.--Class A 89,208
16,000 InKine Pharmaceutical Co.,
Inc. 1 ..................... 86,880
10,800 Innkeepers USA Trust ........ 153,360
3,500 Innovative Solutions and Support,
Inc. 1 ..................... 116,760
2,100 InPhonic, Inc. 1 ............ 57,708
23,500 Input/Output, Inc. 1 ........ 207,740
19,700 Insight Communications Co.,
Inc. 1 ..................... 182,619
SHARES SECURITY VALUE
- --------------------------------------------------------
21,462 Insight Enterprises, Inc. 1 $ 440,400
12,190 Insituform Technologies--
Class A 1 .................. 276,347
15,500 Inspire Pharmaceuticals, Inc. 1 259,935
3,422 Insurance Auto Auctions, Inc. 1 76,721
8,222 Integra Bank Corp. .......... 190,010
8,000 Integra LifeSciences Holdings 1 295,440
41,400 Integrated Device Technology,
Inc. 1 ..................... 478,584
17,200 Integrated Electrical Services,
Inc. 1 ..................... 83,248
16,700 Integrated Silicon Solution,
Inc. 1 ..................... 136,940
2,100 Inter Parfums, Inc. ......... 33,390
9,290 Inter-Tel, Inc. ............. 254,360
13,400 Interactive Data Corp. 1 .... 291,316
1,900 Interchange Corp. 1 ......... 34,466
3,300 Interchange Financial Services
Corp. ...................... 85,536
22,100 InterDigital Communications
Corp. 1 .................... 488,410
18,441 Interface, Inc. 1 183,857
15,024 Intergraph Corp. 1 .......... 404,596
11,804 Intermagnetics General Corp. 1 299,940
13,100 Intermune, Inc. 1 ........... 173,706
17,200 Internet Capital Group, Inc. 1 154,800
15,200 Internet Security Systems,
Inc. 1 ..................... 353,400
4,000 Intersections, Inc. 1 ....... 69,000
2,100 InterVideo, Inc. 1 .......... 27,783
15,400 Intervoice, Inc. 1 .......... 205,590
18,450 Interwoven, Inc. 1 .......... 200,736
7,400 Intrado, Inc. 1 ............. 89,540
13,150 Intuitive Surgical, Inc. 1 .. 526,263
9,700 Invacare Corp. .............. 448,722
4,700 Inverness Medical Innovations,
Inc. 1 ..................... 117,970
17,000 Investment Technology Group,
Inc. 1 ..................... 340,000
14,000 Investors Real Estate Trust,
REIT ....................... 146,860
25,309 Iomega Corp. 1 .............. 140,212
7,200 Ionics, Inc. 1 .............. 312,048
8,700 Iowa Telecommunications
Services, Inc. ............. 187,659
21,300 iPass, Inc. 1 ............... 157,620
4,800 iPayment Holdings, Inc. 1 ... 237,696
9,000 Irwin Financial Corp. ....... 255,510
24,668 Isis Pharmaceuticals, Inc. 1 145,541
6,711 Isle of Capri Casinos, Inc. 1 172,137
10,700 Isolagen, Inc. 1 ............ 84,209
1,700 ITLA Capital Corp. 1 ........ 99,943
9,600 Itron, Inc. 1 ............... 229,536
15,400 iVillage, Inc. 1 ............ 95,172
12,100 Ixia1 ....................... 203,401
9,100 IXYS Corp. 1 ................ 93,912
2,400 J&J Snack Foods Corp. ....... 117,672
8,650 J. Jill Group, Inc. 1 ....... 128,799
7,000 j2 Global Communications,
Inc. 1,2 ................... 241,500
13,898 Jack in the Box, Inc. 1 ..... 512,419
16,900 Jackson Hewitt Tax Service, Inc. 426,725
29,014 Jacuzzi Brands, Inc. 1 ...... 252,422
11,500 JAKKS Pacific, Inc. 1 ....... 254,265
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
16
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
10,450 Jarden Corp. 1 ..............$ 453,948
12,282 JDA Software Group, Inc. 1 .. 167,281
18,000 JLG Industries, Inc. ........ 353,340
7,110 Jo-Ann Stores, Inc. 1 ....... 195,809
3,300 John B. Sanfilippo & Son,
Inc. 1 ..................... 85,074
13,882 Jones Lang LaSalle, Inc. 1 .. 519,326
4,937 Jos. A. Bank Clothiers,
Inc. 1,2.................... 139,717
9,600 Journal Communications, Inc.--
Class A .................... 173,472
14,703 Journal Register Co. 1....... 284,209
21,300 Joy Global, Inc. ............ 925,059
7,600 Jupitermedia Corp. 1 ........ 180,728
11,600 K-Swiss, Inc.--Class A ...... 337,792
15,750 K-V Pharmaceutical Co.--
Class A 1 .................. 347,288
14,900 K2, Inc. 1 .................. 236,612
5,580 Kadant, Inc. 1 .............. 114,390
6,900 Kaman Corp.--Class A ........ 87,285
2,000 Kanbay International, Inc. 1 62,600
1,200 Kansas City Life Insurance Co. 56,760
25,900 Kansas City Southern Industries,
Inc. 1 ..................... 459,207
12,090 Kaydon Corp. ................ 399,212
18,100 KCS Energy, Inc. 1 .......... 267,518
21,700 Keane, Inc. 1 ............... 318,990
5,300 Keithley Instruments, Inc. .. 104,410
10,382 Kellwood Co. ................ 358,179
7,600 Kelly Services, Inc. ........ 229,368
32,300 KEMET Corp. 1 ............... 289,085
15,812 Kennametal, Inc. ............ 786,963
4,550 Kenneth Cole Productions, Inc.--
Class A .................... 140,413
4,800 Kensey Nash Corp. 1 ......... 165,744
9,100 Keryx Biopharmaceuticals,
Inc. 1 ..................... 105,287
50,200 Key Energy Services, Inc. 1 592,360
7,700 Keynote Systems, Inc. 1 ..... 107,184
7,200 Keystone Automotive Industries,
Inc. 1 ..................... 167,400
8,600 Kforce, Inc. 1 .............. 95,460
18,700 KFx, Inc. 1,2................ 271,524
13,300 Kilroy Realty Corp., REIT ... 568,575
8,100 Kimball International, Inc.--
Class B .................... 119,961
9,800 Kindred Healthcare, Inc. 1 .. 293,510
7,836 Kirby Corp. 1 ............... 347,762
5,900 Kirkland's, Inc. 1 .......... 72,511
9,400 Kite Realty Group Trust ..... 143,632
10,100 KNBT Bancorp, Inc. .......... 170,690
49,400 Knight Trading Group, Inc. 1 540,930
14,928 Knight Transportation, Inc. 370,214
12,000 Komag, Inc. 1 ............... 225,360
31,700 Kopin Corp. 1 ............... 122,679
14,223 Korn/Ferry International 1 .. 295,127
5,600 KOS Pharmaceuticals, Inc. 1 210,784
9,600 Kosan Biosciences, Inc. 1 ... 66,528
7,500 Kramont Realty Trust ........ 175,500
22,900 Krispy Kreme Doughnuts, Inc. 1,2 288,540
SHARES SECURITY VALUE
- --------------------------------------------------------
1,206 Kronos Worldwide, Inc. ......$ 49,145
13,521 Kronos, Inc. 1 .............. 691,329
23,400 Kulicke & Soffa Industries,
Inc. 1 ..................... 201,708
8,100 KVH Industries, Inc. 1,2..... 79,380
10,400 Kyphon, Inc. 1 .............. 267,904
73,675 La Quinta Corp. 1 ........... 669,706
22,200 La-Z-Boy, Inc. .............. 341,214
8,000 LabOne, Inc. 1 .............. 256,320
16,700 Labor Ready, Inc. 1 ......... 282,564
21,400 LaBranche & Co., Inc. 1 ..... 191,744
6,500 Laclede Group, Inc. ......... 202,475
44,600 Laidlaw International, Inc. 1 954,440
4,049 Lakeland Bancorp, Inc. ...... 71,060
1,300 Lakeland Financial Corp. .... 51,610
8,200 Lakes Entertainment, Inc. 1 133,578
12,000 Lancaster Colony Corp. ...... 514,440
11,600 Lance, Inc. ................. 220,748
8,200 Landamerica Financial Group 442,226
3,600 Landauer, Inc. .............. 164,520
8,100 Landry's Restaurants, Inc. .. 235,386
12,924 Landstar System, Inc. 1 ..... 951,723
1,950 Lannett Co., Inc. 1 ......... 19,208
10,500 LaSalle Hotel Properties .... 334,215
5,300 LaserCard Corp. 1,2 ......... 55,597
6,900 Laserscope1 ................. 247,779
44,300 Lattice Semiconductor Corp. 1 252,510
1,100 Lawson Products, Inc. ....... 55,473
19,100 Lawson Software, Inc. 1 ..... 131,217
2,700 Layne Christensen Co. 1...... 49,005
7,100 LCA-Vision, Inc. ............ 166,069
4,000 Leadis Technology, Inc. 1 ... 42,600
12,600 Leapfrog Enterprises, Inc. 1,2 171,360
3,583 Learning Tree International,
Inc. 1 ..................... 48,012
4,700 LECG Corp. 1 ................ 87,655
4,500 LeCroy Corp. 1 .............. 105,030
20,218 Lennox International, Inc. .. 411,436
7,125 Levitt Corp.--Class A ....... 217,811
27,700 Lexar Media, Inc. 1,2........ 217,168
22,922 Lexicon Genetics, Inc. 1 .... 177,760
16,900 Lexington Corp. Properties
Trust, REIT ................ 381,602
5,400 Libbey, Inc. ................ 119,934
7,075 Liberty Corp. ............... 311,017
3,700 Life Time Fitness, Inc. 1 ... 95,756
13,900 LifeCell Corp. 1 ............ 142,058
3,400 Lifeline Systems, Inc. 1 .... 87,584
15,600 LifePoint Hospitals, Inc. 1 . 543,192
2,000 Lifetime Hoan Corp. ......... 31,800
28,400 Ligand Pharmaceuticals, Inc.--
Class B 1 .................. 330,576
10,500 Lin TV Corp.--Class A 1 ..... 200,550
14,474 Lincoln Electric Co. ........ 499,932
5,050 Lindsay Manufacturing Co. ... 130,694
17,300 Linens 'n Things, Inc. 1 .... 429,040
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
17
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
21,800 Lionbridge Technologies,
Inc. 1 .....................$ 146,496
6,500 Lithia Motors, Inc.--Class A 174,330
9,586 Littelfuse, Inc. 1 .......... 327,458
4,600 LKQ Corp. 1 ................. 92,322
7,300 LNR Property Corp. .......... 459,243
5,254 LodgeNet Entertainment Corp. 1 92,943
7,000 Lone Star Steakhouse & Saloon,
Inc. ....................... 196,000
11,136 Lone Star Technologies, Inc. 1 372,611
11,283 Longs Drug Stores Corp. ..... 311,072
22,200 Longview Fibre Co. .......... 402,708
47,600 LookSmart Ltd. 1............. 104,244
6,975 LSI Industries, Inc. ........ 79,864
7,600 LTC Properties, Inc., REIT .. 151,316
27,174 LTX Corp. 1 ................. 208,968
1,900 Lufkin Industries, Inc. ..... 75,825
19,200 Luminent Mortgage Capital, Inc.,
REIT ....................... 228,480
8,900 Luminex Corp. 1 ............. 79,032
5,200 M&F Worldwide Corp. 1 ....... 70,824
4,300 M/I Schottenstein Homes, Inc. 236,973
2,241 Macatawa Bank Corp. ......... 72,362
11,203 MacDermid, Inc. ............. 404,428
19,300 Macrovision Corp. 1 ......... 496,396
12,960 MAF Bancorp, Inc. ........... 580,867
12,100 Magellan Health Services,
Inc. 1 ..................... 413,336
11,900 Magma Design Automation, Inc. 1 149,464
19,000 Magna Entertainment Corp.,--
Class A 1 .................. 114,380
6,700 MagneTek, Inc. 1 ............ 46,230
32,900 Magnum Hunter Resources, Inc. 1 424,410
13,200 Maguire Properties, Inc. .... 362,472
7,100 Main Street Banks, Inc. ..... 248,003
2,275 MainSource Financial Group, Inc. 54,335
11,500 Manhattan Associates, Inc. 1 274,620
11,077 Manitowoc Co., Inc. ......... 417,049
6,400 Mannatech, Inc. ............. 121,856
4,200 Mannkind Corp. 1 ............ 66,150
7,800 ManTech International Corp.--
Class A 1 .................. 185,172
28,800 Manugistics Group, Inc. 1 ... 82,656
9,600 MAPICS, Inc. 1 .............. 101,280
6,700 MapInfo Corp. 1 ............. 80,266
2,800 Marchex, Inc. 1 ............. 58,800
6,150 Marcus Corp. ................ 154,611
3,300 Marine Products Corp. ....... 86,163
4,100 MarineMax, Inc. 1 ........... 122,016
3,700 MarketAxcess Holdings, Inc. 1 62,937
6,100 MarketWatch, Inc. 1 ......... 109,800
2,300 Marten Transport Ltd. 1...... 52,279
5,522 Martha Stewart Living
Omnimedia, Inc. 1,2......... 160,248
3,800 MascoTech, Inc.--Entitlement 1 --
7,700 MasTec, Inc. 1 .............. 77,847
5,000 Matria Healthcare, Inc. 1 ... 195,350
SHARES SECURITY VALUE
- --------------------------------------------------------
10,400 Matrix Service Co. 1,2.......$ 83,824
20,500 MatrixOne, Inc. 1 ........... 134,275
13,100 Matthews International Corp.--
Class A .................... 482,080
18,100 Mattson Technology, Inc. 1 .. 203,806
1,900 Maui Land & Pineapple Co.,
Inc. 1 ..................... 74,575
16,483 Maverick Tube Corp. 1 ....... 499,435
17,100 Maxim Pharmaceuticals, Inc. 1,2 51,642
6,700 MAXIMUS, Inc. 1 ............. 208,504
3,400 Maxwell Technologies, Inc. 1 34,476
8,100 Maxygen, Inc. 1 ............. 103,599
8,200 MB Financial, Inc. .......... 345,630
4,000 MBT Financial Corp. ......... 93,080
45,500 McDATA Corp.--Class A 1 ..... 271,180
16,400 MCG Capital Corp. ........... 280,932
3,200 McGrath Rentcorp ............ 139,552
8,900 McMoRan Exploration Co. 1,2.. 166,430
3,400 Measurement Specialties, Inc. 1 86,564
31,100 Medarex, Inc. 1 ............. 335,258
3,100 MedCath Corp. 1 ............. 76,384
30,800 Mediacom Communications Corp. 1 192,500
4,400 Medical Action Industries,
Inc. 1 ..................... 86,680
4,800 Medical Staffing Network
Holdings, Inc. 1 ........... 39,312
18,700 Medicines Co. 1.............. 538,560
4,465 Medis Technologies Ltd.1,2 .. 81,933
11,992 Men's Wearhouse, Inc. 1 ..... 383,264
17,192 Mentor Corp. ................ 580,058
33,300 Mentor Graphics Corp. 1 ..... 509,157
3,570 Mercantile Bank Corp. ....... 141,015
9,322 Mercury Computer Systems,
Inc. 1 ..................... 276,677
5,600 Merge Technologies, Inc. 1 .. 124,600
21,700 Meridian Resource Corp. 1 ... 131,285
31,844 Meristar Hospitality Corp. 1 265,897
11,144 Merit Medical Systems, Inc. 1 170,280
4,100 Meritage Corp. 1 ............ 462,070
9,000 Merix Corp. 1 ............... 103,680
15,100 Mesa Air Group, Inc. 1,2..... 119,894
7,000 Metal Management, Inc. ...... 188,090
9,800 Metals USA, Inc. 1 .......... 181,790
12,228 Methode Electronics, Inc.--
Class A .................... 157,130
11,700 Metris Cos., Inc. 1 ......... 149,175
5,000 Metrologic Instruments, Inc. 1 106,250
31,900 MFA Mortgage Investments, Inc. 281,358
6,400 MGE Energy, Inc. ............ 230,592
4,200 MGP Ingredients, Inc. ....... 36,288
27,100 Micrel, Inc. 1 .............. 298,642
34,500 Micromuse, Inc. 1 ........... 191,475
7,083 MICROS Systems, Inc. 1 ...... 552,899
22,988 Microsemi Corp. 1 ........... 399,072
4,600 MicroStrategy, Inc.--Class A 1 277,150
13,900 Microtek Medical Holdings,
Inc. 1 ..................... 56,434
23,100 Microtune, Inc. 1 ........... 141,141
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
18
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
9,900 Microvision, Inc. 1,2........$ 69,300
8,100 Mid-America Apartment
Communities, Inc. .......... 333,882
9,600 Mid-State Bancshares ........ 275,040
7,400 Midas, Inc. 1 ............... 148,000
2,300 Middleby Corp. (The) ........ 116,656
2,533 Middlesex Water Co. ......... 47,975
2,400 Midland Co. ................. 75,048
17,159 Midway Games, Inc. 1,2....... 180,170
5,100 Midwest Banc Holdings, Inc. . 111,537
21,065 Milacron, Inc. 1 ............ 71,410
46,900 Mindspeed Technologies,
Inc. 1,2 ................... 130,382
8,400 Mine Safety Appliances Co. .. 425,880
8,068 Minerals Technologies, Inc. 538,136
19,100 MIPS Technologies, Inc. 1 ... 188,135
20,600 Mission Resources Corp. 1 ... 120,304
8,100 Mission West Properties, Inc. 86,184
12,700 MKS Instruments, Inc. 1 ..... 235,585
6,674 Mobile Mini, Inc. 1 ......... 220,509
12,400 Mobility Electronics, Inc1 .. 106,392
10,506 Modine Manufacturing Co. .... 354,788
7,400 Molecular Devices Corp. 1 ... 148,740
3,500 Molina Healthcare, Inc. 1 ... 162,330
11,775 Monaco Coach Corp. .......... 242,212
11,600 Monolithic Systems Technology,
Inc. 1 ..................... 72,268
3,750 Monro Muffler Brake, Inc. 1 94,875
10,050 Moog, Inc.--Class A 1 ....... 455,768
8,100 MortgageIT Holdings, Inc. ... 145,395
49,900 Mosaic Co. (The)1 ........... 814,368
4,500 Movado Group, Inc. .......... 83,925
12,025 Movie Gallery, Inc. ......... 229,317
45,572 MPS Group, Inc. 1 ........... 558,713
7,420 MRO Software, Inc. 1 ........ 96,608
39,834 MRV Communications, Inc. 1 .. 146,191
13,300 MSC Software Corp. 1 ........ 139,251
2,500 MTC Technologies, Inc. 1 .... 83,925
9,900 MTR Gaming Group, Inc. 1 .... 104,544
9,500 MTS Systems Corp. ........... 321,195
13,700 Mueller Industries, Inc. .... 441,140
3,300 Multi-Fineline Electronix,
Inc. 1 ..................... 60,192
11,000 Multimedia Games, Inc. 1 .... 173,360
7,559 Myers Industries, Inc. ...... 96,755
15,300 Mykrolis Corp. 1 ............ 216,801
13,700 Myriad Genetics, Inc. 1 ..... 308,387
22,533 Nabi Biopharmaceuticals 1 ... 330,108
1,725 NACCO Industries, Inc.--Class A 181,815
21,600 Nanogen, Inc. 1,2............ 158,976
9,100 Nara Bancorp, Inc. .......... 193,557
5,800 Nash Finch Co. .............. 219,008
1,000 National Beverage Corp. 1 ... 8,320
14,200 National Financial Partners
Corp. ...................... 550,960
10,500 National Health Investors, Inc. 306,390
2,000 National Healthcare Corp. ... 70,600
SHARES SECURITY VALUE
- --------------------------------------------------------
13,066 National Penn Bancshares,
Inc. .......................$ 361,928
1,100 National Presto Industries, Inc. 50,050
700 National Western Life Insurance
Co.--Class A 1 ............ 116,627
29,700 Nationwide Health Properties,
Inc. ....................... 705,375
6,000 Nature's Sunshine Products,
Inc. ....................... 122,160
10,675 Nautilus Group, Inc. ........ 258,015
9,300 Navarre Corp. 1 ............. 163,680
17,875 Navigant Consulting, Inc. 1 475,475
7,500 Navigant International,
Inc. 1,2.................... 91,275
2,600 Navigators Group, Inc. (The) 1 78,286
1,233 NBC Capital Corp. ........... 32,761
15,097 NBT Bancorp, Inc. ........... 388,295
8,800 NCI Building Systems, Inc. 1 330,000
12,511 NCO Group, Inc. 1 ........... 323,409
700 NCP Litigation Trust
Entitlements 1 ............. --
13,389 NDCHealth Corp. ............. 248,902
16,700 NeighborCare, Inc. 1,2....... 513,024
2,400 Nelnet, Inc. 1 .............. 64,632
3,500 Neoforma, Inc. 1 ............ 26,915
8,786 NeoPharm, Inc. 1 ............ 109,913
6,622 Neose Technologies, Inc. 1 .. 44,500
5,600 Ness Technologies, Inc. 1 ... 83,440
22,596 Net.B@nk, Inc. .............. 235,224
19,800 Net2Phone, Inc. 1 ........... 67,320
10,100 NETGEAR, Inc. 1 ............. 183,719
21,572 NetIQ Corp. 1 ............... 263,394
4,200 Netratings, Inc. 1 .......... 80,514
7,200 Netscout Systems, Inc. 1 .... 50,256
11,600 Network Equipment
Technologies, Inc. 1 ....... 113,912
7,900 Neurogen Corp. 1 ............ 73,944
2,900 Nevada Gold & Casinos, Inc. 1 35,380
15,800 New Century Financial Corp. 1,009,778
11,850 New Jersey Resources Corp. .. 513,579
2,600 New York & Co., Inc. 1 ...... 42,952
14,300 Newcastle Investment Corp. .. 454,454
5,700 NewMarket Corp. 1 ........... 113,430
28,825 Newpark Resources, Inc. 1 ... 148,449
15,900 Newport Corp. 1 ............. 224,190
3,300 Nexstar Broadcasting Group,
Inc.--Class A 1 ........... 30,426
2,800 NGP Capital Resources Co. 1.. 43,036
13,700 NIC, Inc. 1 ................. 69,596
20,000 Nicor, Inc. ................. 738,800
4,500 NitroMed, Inc. 1 ............ 119,925
2,300 NL Industries, Inc. 1 ....... 50,830
21,200 NMS Communications Corp. 1 .. 133,772
6,600 NN, Inc. .................... 87,186
3,300 Noble International Ltd. .... 67,287
12,200 Nordson Corp. ............... 488,854
4,900 North Pittsburgh Systems, Inc. 121,177
8,700 Northfield Laboratories,
Inc. 1,2 ................... 196,185
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
19
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
31,600 Northwest Airlines Corp. 1,2 $ 345,388
5,900 Northwest Bancorp, Inc. ..... 148,031
12,107 Northwest Natural Gas Co. ... 408,490
10,200 Novastar Financial, Inc.,
REIT 2 ..................... 504,900
6,800 Novatel Wireless, Inc. 1 .... 131,784
10,700 Noven Pharmaceuticals, Inc. 1 182,542
13,970 NPS Pharmaceuticals, Inc. 1 255,372
8,576 NS Group, Inc. 1 ............ 238,413
20,544 Nu Skin Enterprises, Inc. ... 521,407
3,900 Nutraceutical International
Corp. 1 .................... 60,099
13,333 Nuvelo, Inc. 1 .............. 131,330
500 NYMAGIC, Inc. ............... 12,650
10,100 O'Charley's, Inc. 1 ......... 197,455
10,900 Oakley, Inc. ................ 138,975
20,600 OCA, Inc. 1,2................ 130,810
3,500 Ocean Financial Corp. ....... 86,275
9,300 Oceaneering International,
Inc. 1 ..................... 347,076
5,100 Octel Corp. ................. 106,131
8,900 Ocular Sciences, Inc. 1 ..... 436,189
16,600 Ocwen Financial Corp. 1 ..... 158,696
16,575 Odyssey Healthcare, Inc. 1 .. 226,746
7,200 Offshore Logistics, Inc. 1 .. 233,784
26,742 Ohio Casualty Corp. 1 ....... 620,682
14,800 Oil States International,
Inc. 1 ..................... 285,492
7,700 Old Dominion Freight Line,
Inc. 1 ..................... 267,960
24,800 Old National Bancorp ........ 641,328
3,798 Old Second Bancorp, Inc. .... 121,080
29,354 Olin Corp. .................. 646,375
10,900 OM Group, Inc. 1 ............ 353,378
4,400 Omega Financial Corp. ....... 150,832
17,000 OMEGA Healthcare Investors, Inc. 200,600
10,700 Omnicell, Inc. 1 ............ 117,700
21,900 OmniVision Technologies,
Inc. 1,2.................... 401,865
12,700 Omnova Solutions, Inc. 1 .... 71,374
53,000 ON Semiconductor Corp. 1 .... 240,620
13,700 Onyx Pharmaceuticals, Inc. 1 443,743
6,000 Open Solutions, Inc. 1 ...... 155,760
25,266 Openwave Systems, Inc. 1 .... 390,612
47,400 Oplink Communications, Inc. 1 93,378
5,700 OPNET Technologies, Inc. 1 .. 47,994
26,800 Opsware, Inc. 1 ............. 196,712
8,100 Optical Communication Products,
Inc. 1 ..................... 20,250
6,800 Option Care, Inc. ........... 116,892
17,400 Orasure Technologies, Inc. 1 116,928
19,160 Orbital Sciences Corp. 1 .... 226,663
12,900 Oregon Steel Mills, Inc. 1 .. 261,741
9,242 Oriental Financial Group, Inc. 261,647
1,500 Orleans Homebuilders, Inc. 1 29,775
4,900 Ormat Technologies, Inc. 1 .. 79,772
15,500 OrthoLogic Corp. 1 .......... 96,875
18,700 Orthovita, Inc. 1 ........... 78,353
25,000 Oscient Pharmaceuticals
Corp. 1,2 .................. 91,250
4,208 Oshkosh B'Gosh, Inc.--Class A 90,051
SHARES SECURITY VALUE
- --------------------------------------------------------
6,800 OSI Systems, Inc. 1 .........$ 154,428
9,400 Otter Tail Power Co. ........ 239,982
7,200 Overland Storage, Inc. 1 .... 120,168
10,300 Overnite Corp. .............. 383,572
10,300 Overseas Shipholding Group, Inc. 568,560
4,500 Overstock.com, Inc. 1,2...... 310,500
14,700 Owens & Minor, Inc., Holding Co. 414,099
4,700 Oxford Industries, Inc. ..... 194,110
1,300 P.A.M. Transportation Services,
Inc. 1 ..................... 24,375
9,872 P.F. Chang's China Bistro,
Inc. 1 ..................... 556,287
13,100 Pacer International, Inc. 1 278,506
16,944 Pacific Capital Bancorp ..... 575,927
14,200 Packeteer, Inc. 1 ........... 205,190
12,000 Pain Therapeutics, Inc. 1 ... 86,520
22,700 Palatin Technologies, Inc. 1 60,382
4,850 Palm Harbor Homes, Inc. 1,2.. 81,868
16,698 PalmOne, Inc. 1,2............ 526,822
7,187 PalmSource, Inc. 1 .......... 91,562
5,800 Palomar Medical Technologies,
Inc. 1 ..................... 151,206
10,600 Panera Bread Co.--Class A 1,2 427,392
5,600 Pantry, Inc. (The) 1 ........ 168,504
5,806 Papa John's International,
Inc. 1 ..................... 199,959
13,600 Par Pharmaceutical Cos.,
Inc. 1 ..................... 562,768
13,200 Paradyne Networks, Inc. 1 ... 47,388
115,500 Parametric Technology Corp. 1 680,295
11,260 PAREXEL International Corp. 1 228,578
6,387 Park Electrochemical Corp. .. 138,470
5,450 Park National Corp. ......... 738,475
32,400 Parker Drilling Co. 1........ 127,332
4,100 Parkway Properties, Inc. .... 208,075
15,895 Partners Trust Financial Group,
Inc. ....................... 185,177
5,200 Party City Corp. 1 .......... 67,236
15,500 Pathmark Stores, Inc. 1 ..... 90,055
15,350 Paxar Corp. 1 ............... 340,310
21,000 Paxson Communications Corp. 1 28,980
26,000 Payless ShoeSource, Inc. 1 .. 319,800
3,250 PC Connection, Inc. 1 ....... 30,940
4,100 PC Mall, Inc. 1 ............. 91,758
10,000 PC-Tel, Inc. 1 .............. 79,300
6,300 PDF Solutions, Inc. 1 ....... 101,493
4,300 PDI, Inc. 1 ................. 95,804
1,793 Peapack-Gladstone Financial Corp. 56,569
5,200 PEC Solutions, Inc. 1 ....... 73,684
9,300 Pediatrix Medical Group, Inc. 1 595,665
5,600 Peet's Coffee & Tea, Inc. 1 148,232
10,404 Pegasus Systems, Inc. 1 ..... 131,090
4,400 Pegasystems, Inc. 1 ......... 37,532
3,074 Penn Engineering &
Manufacturing Corp. ........ 55,639
13,500 Penn National Gaming, Inc. 1 817,425
6,400 Penn Virginia Corp. ......... 259,648
5,100 Penn-America Group, Inc. .... 77,010
4,600 PennFed Financial Services, Inc. 73,968
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
20
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
2,256 PennRock Financial Services
Corp. ......................$ 87,781
13,912 Pennsylvania Real Estate
Investment Trust, REIT ..... 595,434
7,900 Penwest Pharmaceuticals Co. 1 94,484
5,895 Peoples Bancorp, Inc. ....... 161,700
17,000 Peoples Energy Corp. ........ 747,150
2,300 Peoples Holding Co. ......... 76,130
22,300 Pep Boys--Manny, Moe, & Jack 380,661
10,533 Per-Se Technologies, Inc. 1 166,737
42,200 Peregrine Pharmaceuticals 1 49,374
18,400 Performance Food Group Co. 1 495,144
11,100 Pericom Semiconductor Corp. 1 104,673
4,600 Perini Corp. 1 .............. 76,774
32,000 Perot Systems Corp.--Class A 1 512,960
27,898 Perrigo Co. ................. 481,798
3,700 Perry Ellis International,
Inc. 1 ..................... 75,295
6,900 PetMed Express, Inc. 1 ...... 52,509
7,300 Petroleum Development Corp. 1 281,561
4,660 PFF Bancorp, Inc. ........... 215,898
9,500 Pharmacyclics, Inc. 1 ....... 99,465
5,600 Pharmion Corp. 1 ............ 236,376
43,100 Pharmos Corp. 1,2 ........... 61,202
8,000 Philadelphia Consolidated
Holding Corp. 1 ............ 529,120
11,200 Phillips-Van Heusen Corp. ... 302,400
35,700 Phoenix Cos., Inc. (The)2 ... 446,250
7,541 Photon Dynamics, Inc. 1 ..... 183,095
12,768 Photronics, Inc. 1 .......... 210,672
2,400 PICO Holdings, Inc. 1 ....... 49,848
34,300 Piedmont Natural Gas Co., Inc. 797,132
10,000 Pinnacle Airlines Corp. 1 ... 139,400
14,900 Pinnacle Entertainment, Inc. 1 294,722
31,612 Pinnacle Systems, Inc. 1 .... 192,833
8,400 Piper Jaffray Cos., Inc. 1 .. 402,780
14,900 Pixelworks, Inc. 1 .......... 168,966
3,800 Placer Sierra Bancshares .... 108,072
30,216 Plains Exploration &
Production Co. 1............ 785,616
7,800 Planar Systems, Inc. 1 ...... 87,594
11,500 PLATO Learning, Inc. 1 ...... 85,675
5,760 Playboy Enterprises, Inc.--
Class B 1 .................. 70,790
18,500 Playtex Products, Inc. 1 .... 147,815
16,824 Plexus Corp. 1 .............. 218,880
21,771 Plug Power, Inc. 1,2......... 133,021
8,700 PLX Technology, Inc. 1 ...... 90,480
13,500 PMA Capital Corp.--Class A 1 139,725
24,769 PNM Resources, Inc. ......... 626,408
11,800 Polymedica Corp. ............ 440,022
35,862 Polyone Corp. 1 ............. 324,910
7,876 Pope & Talbot, Inc. ......... 134,758
16,600 Portal Software, Inc. 1 ..... 43,990
3,400 PortalPlayer, Inc. 1 ........ 83,912
5,700 Portfolio Recovery Associates,
Inc. 1 ..................... 234,954
7,900 Possis Medical, Inc. 1 ...... 106,492
SHARES SECURITY VALUE
- --------------------------------------------------------
14,500 Post Properties, Inc. .......$ 506,050
12,468 Potlatch Corp. .............. 630,631
2,300 Powell Industries, Inc. 1 ... 42,527
10,300 Power Integrations, Inc. 1 .. 203,734
25,300 Power-One, Inc. 1 ........... 225,676
40,500 Powerwave Technologies, Inc. 1 343,440
11,300 Pozen, Inc. 1 ............... 82,151
2,200 PRA International1 .......... 54,516
20,900 PRAECIS Pharmaceuticals, Inc. 1 39,710
5,000 Pre-Paid Legal Services, Inc. 187,750
19,700 Prentiss Properties Trust, REIT 752,540
10,000 Presidential Life Corp. ..... 169,600
11,800 Presstek, Inc. 1 ............ 114,224
17,197 PRG-Schultz International,
Inc. 1 ..................... 86,501
14,963 Price Communications Corp. 1 278,162
8,716 Priceline.com, Inc. 1,2...... 205,610
55,800 PRIMEDIA, Inc. 1 ............ 212,040
32,700 Primus Telecommunications
Group, Inc. 1 .............. 103,986
13,200 Priority Healthcare Corp.--
Class B1 ................... 287,364
7,800 PrivateBancorp, Inc. ........ 251,394
12,093 Proassurance Corp. 1 ........ 472,957
2,000 Procurenet 1 ................ --
5,500 Progenics Pharmaceuticals,
Inc. 1 ..................... 94,380
13,694 Progress Software Corp. 1 ... 319,755
9,300 Proquest Co. 1............... 276,210
8,800 Prosperity Bancshares, Inc. 257,048
2,400 Provide Commerce, Inc. 1 .... 89,160
14,878 Provident Bancorp, Inc. ..... 196,241
14,597 Provident Bankshares Corp. .. 530,893
2,100 Provident Financial Holdings,
Inc. ....................... 60,585
33,064 Provident Financial Services,
Inc. ....................... 640,450
18,927 Province Healthcare Co. 1.... 423,018
6,400 PS Business Parks, Inc. ..... 288,640
26,463 PSS World Medical, Inc. 1 ... 331,184
6,400 Psychiatric Solutions, Inc. 1 233,984
25,700 PTEK Holdings, Inc. 1 ....... 275,247
4,100 Pulitzer, Inc. .............. 265,885
5,500 QAD, Inc. ................... 49,060
2,600 Quaker Chemical Corp. ....... 64,584
6,300 Quality Distribution, Inc. 1 53,172
1,900 Quality Systems, Inc. 1 ..... 113,620
7,500 Quanex Corp. ................ 514,275
26,900 Quanta Services, Inc. 1 ..... 215,200
65,000 Quantum Corp. 1 ............. 170,300
19,500 Quest Software, Inc. 1 ...... 311,025
11,200 Quicksilver Resources, Inc. 1 411,936
21,800 Quicksilver, Inc. 1 ......... 649,422
15,500 Quidel Corp. 1 .............. 78,740
4,000 Quixote Corp. ............... 81,320
12,450 R&G Financial Corp.--Class B 484,056
9,700 R.H. Donnelley Corp. 1 ...... 572,785
8,874 RadiSys Corp. 1 ............. 173,487
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
21
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
14,900 RAE Systems, Inc. 1 .........$ 108,770
12,900 RailAmerica, Inc. 1 ......... 168,345
11,100 RAIT Investment Trust, REIT 310,467
11,760 Ralcorp Holdings, Inc. ...... 493,097
7,600 Ramco-Gershenson Properties
Trust, REIT ................ 245,100
26,400 Range Resources Corp. ....... 540,144
15,075 RARE Hospitality International,
Inc. 1 ..................... 480,290
7,800 Raven Industries, Inc. ...... 166,218
13,200 Rayovac Corp. 1 ............. 403,392
7,500 RC2 Corp. 1 ................. 244,500
43,500 Reader's Digest Association,
Inc. (The) ................. 605,085
5,400 Reading International, Inc.--
Class A 1 .................. 45,144
42,100 RealNetworks, Inc. 1 ........ 278,702
17,000 Realty Income Corp., REIT ... 859,860
5,500 Red Robin Gourmet Burgers 1 294,085
14,600 Redback Networks, Inc. 1 .... 78,256
6,400 Redwood Trust, Inc. ......... 397,376
11,400 Regal-Beloit Corp. .......... 326,040
12,000 Regeneration Technologies,
Inc. 1 ..................... 125,760
16,400 Regeneron Pharmaceuticals,
Inc. 1 ..................... 151,044
11,200 Regent Communications, Inc. 1 59,360
7,100 RehabCare Group, Inc. 1 ..... 198,729
12,650 Reliance Steel & Aluminum Co. 492,844
27,448 Remec, Inc. 1 ............... 197,900
8,000 Remington Oil & Gas Corp. 1 218,000
3,000 Renaissance Learning, Inc. .. 55,680
13,361 Rent-Way, Inc. 1 ............ 107,022
31,844 Republic Bancorp, Inc. ...... 486,576
1,855 Republic Bancorp, Inc.--
Class A .................... 47,674
5,500 Res-Care, Inc. 1 ............ 83,710
4,800 Resource America, Inc.
--Class A .................. 156,000
10,100 Resources Connection, Inc. 1 548,531
14,100 Restoration Hardware, Inc. 1 80,934
1,200 Retail Ventures, Inc. 1 ..... 8,520
25,600 Retek, Inc. 1 ............... 157,440
58,900 Revlon, Inc.--Class A 1 ..... 135,470
8,700 Rewards Network, Inc. 1 ..... 60,900
73,500 RF Micro Devices, Inc. 1 .... 502,740
5,100 Rigel Pharmaceuticals, Inc. 1 124,542
8,874 Riggs National Corp. ........ 188,661
9,000 RLI Corp. ................... 374,130
3,800 Robbins & Myers, Inc. ....... 90,554
9,500 Rock-Tenn Co.--Class A ...... 144,020
6,700 Rofin-Sinar Technologies,
Inc. 1 ..................... 284,415
6,500 Rogers Corp. 1 .............. 280,150
9,050 Rollins, Inc. ............... 238,196
321 Royal Bancshares of Pennsylvania,
Inc.--Class A .............. 8,682
8,600 Royal Gold, Inc. 2........... 156,864
2,400 RPC, Inc. ................... 60,288
27,600 RSA Security, Inc. 1 ........ 553,656
8,000 RTI International Metals,
Inc. 1 ..................... 164,320
SHARES SECURITY VALUE
- --------------------------------------------------------
14,000 Ruddick Corp. ...............$ 303,660
6,300 Rudolph Technologies, Inc. 1 108,171
4,800 Russ Berrie & Co., Inc. ..... 109,632
10,500 Russell Corp. ............... 204,540
18,350 Ryan's Restaurant Group, Inc. 1 282,957
11,288 Ryerson Tull, Inc.--Class A 177,786
8,860 S&T Bancorp, Inc. ........... 333,933
3,400 S.Y. Bancorp, Inc. .......... 81,940
28,500 S1 Corp. 1 .................. 258,210
46,400 Safeguard Scientifics, Inc. 1 98,368
9,173 SafeNet, Inc. 1 ............. 337,016
5,400 Safety Insurance Group, Inc. 168,210
5,950 SAGA Communications, Inc.--
Class A 1 .................. 100,258
3,218 Salem Communications Corp. 1 80,289
6,100 Salesforce.com, Inc. 1 ...... 103,334
15,650 Salix Pharmaceuticals Ltd. 1 275,284
3,200 Sanders Morris Harris Group,
Inc. ....................... 56,992
4,950 Sanderson Farms, Inc. ....... 214,236
7,200 Sandy Spring Bancorp, Inc. .. 275,976
1,331 Santander BanCorp ........... 40,143
6,000 Santarus, Inc. 1 ............ 54,360
30,200 Sapient Corp. 1 ............. 238,882
2,600 Sauer, Inc. ................. 56,706
3,500 Saul Centers, Inc. .......... 133,875
22,100 Saxon Capital, Inc. ......... 530,179
20,300 SBA Communications Corp. 1 .. 188,384
7,308 SBS Technologies, Inc. 1 .... 102,020
31,036 Scansoft, Inc. 1 ............ 130,041
5,400 ScanSource, Inc. 1 .......... 335,664
1,985 SCBT Financial Corp. ........ 66,620
1,400 Schawk, Inc. ................ 25,452
7,250 Schnitzer Steel Industries,
Inc.--Class A ............. 245,993
13,600 Scholastic Corp. 1 .......... 502,656
10,100 School Speciality, Inc. 1 ... 389,456
13,300 Schulman, Inc. .............. 284,753
5,000 Schweitzer-Mauduit
International, Inc. ........ 169,750
21,100 SciClone Pharmaceuticals,
Inc. 1 ..................... 78,070
33,000 Scientific Games Corp.--
Class A 1 .................. 786,720
23,143 SCP Pool Corp. .............. 738,262
7,349 SCS Transportation, Inc. 1 .. 171,746
100 Seaboard Corp. .............. 99,800
4,600 Seabulk International, Inc. 1 55,706
11,200 SeaChange International,
Inc. 1 ..................... 195,328
4,760 Seacoast Banking
Corp. of Florida ........... 105,910
6,750 Seacor SMIT, Inc. 1 ......... 360,450
13,600 Seattle Genetics, Inc. 1 .... 88,808
16,137 Secure Computing Corp. 1 .... 161,047
800 Security Bank Corp. ......... 32,000
21,700 Seebeyond Technology Corp. 1 77,686
16,400 Select Comfort Corp. 1 ...... 294,216
36,300 Select Medical Corp. ........ 638,880
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
22
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
12,600 Selective Insurance Group,
Inc. .......................$ 557,424
8,000 Semitool, Inc. 1 ............ 74,240
22,400 Senior Housing Properties Trust,
REIT ....................... 424,256
17,533 Sensient Technologies Corp. 420,617
2,000 Sequa Corp.--Class A 1 ...... 122,300
11,526 SERENA Software, Inc. 1 ..... 249,423
15,200 Serologicals Corp. 1 ........ 336,224
5,600 SFBC International, Inc. 1 .. 221,200
6,000 Sharper Image Corp. 1 ....... 113,100
24,500 Shaw Group, Inc. 1 .......... 437,325
2,000 Shenandoah Telecommunications
Co. ........................ 59,900
3,700 Shoe Carnival, Inc. 1 ....... 48,100
12,290 ShopKo Stores, Inc. 1 ....... 229,577
8,950 Shuffle Master, Inc. 1,2..... 421,545
3,400 SI International, Inc. 1 .... 104,584
8,900 Sierra Health Services, Inc. 1 490,479
45,220 Sierra Pacific Resources 1,2 474,810
9,500 Sigmatel, Inc. 1 ............ 337,535
1,100 Signature Bank 1 ............ 35,596
5,100 Silgan Holdings, Inc. ....... 310,896
100,500 Silicon Graphics, Inc. 1,2... 173,865
29,300 Silicon Image, Inc. 1 ....... 482,278
30,300 Silicon Storage Technology,
Inc. 1 ..................... 180,285
15,700 Silicon Valley Bancshares 1 703,674
2,100 Siliconix, Inc. 1 ........... 76,629
4,500 Simmons First National Corp.--
Class A .................... 130,275
7,200 SimpleTech, Inc. 1 .......... 33,120
16,300 Simpson Manufacturing Co.,
Inc. ....................... 568,870
21,018 Sinclair Broadcast Group,
Inc. ....................... 193,576
12,106 SIPEX Corp. 1 ............... 56,656
4,300 SiRF Technology Holdings,
Inc. 1 ..................... 54,696
18,800 SITEL Corp. 1 ............... 46,248
35,200 Six Flags, Inc. 1 ........... 189,024
1,600 SJW Corp. ................... 58,240
9,889 Skechers USA, Inc.--Class A 1 128,161
2,100 Skyline Corp. ............... 85,680
25,500 SkyWest, Inc. ............... 511,530
59,200 Skyworks Solutions, Inc. 1 .. 558,256
3,900 Smart & Final, Inc. 1 ....... 56,121
1,500 Smithtown Bancorp, Inc. ..... 47,625
28 SoftBrands, Inc. 1 .......... 62
8,000 Sohu.com, Inc. 1 ............ 141,680
14,200 Sola International, Inc. 1 .. 391,068
10,500 Sonic Automotive, Inc. ...... 260,400
25,647 Sonic Corp. 1 ............... 782,234
9,200 Sonic Innovations, Inc. 1 ... 38,364
8,500 Sonic Solutions1 ............ 190,740
27,300 SonicWALL, Inc. 1 ........... 172,536
6,828 SonoSite, Inc. 1 ............ 231,811
20,283 Sotheby's Holding, Inc.--
Class A 1 .................. 368,339
10,000 Source Interlink Cos., Inc. 1 132,800
6,383 SOURCECORP, Inc. 1 .......... 121,979
SHARES SECURITY VALUE
- --------------------------------------------------------
6,600 South Jersey Industries, Inc.$ 346,896
3,000 Southern Community Financial
Corp. ...................... 31,050
28,689 Southern Union Co. 1......... 687,962
2,157 Southside Bancshares, Inc. .. 49,287
6,200 Southwest Bancorp, Inc. ..... 151,776
30,000 Southwest Bancorp. of Texas,
Inc. ....................... 698,700
14,312 Southwest Gas Corp. ......... 363,525
7,167 Southwest Water Co. ......... 96,400
14,200 Southwestern Energy Co. 1.... 719,798
7,000 Sovran Self Storage, Inc. ... 294,980
17,998 Spanish Broadcasting System,
Inc. 1 ..................... 190,059
9,000 Spartech Corp. .............. 243,810
11,900 SpatiaLight, Inc. 1 ......... 106,505
3,000 Specialty Laboratories, Inc. 1 33,120
9,700 Spectralink Corp. ........... 137,546
5,554 Speedway Motorsports, Inc. .. 217,606
22,543 Spherion Corp. 1 ............ 189,361
9,380 Spinnaker Exploration Co. 1.. 328,957
8,249 Sports Authority, Inc. (The) 1 212,412
3,700 Sports Resorts International,
Inc. 1 ..................... 10,656
4,800 SPSS, Inc. 1 ................ 75,072
5,700 SRA International, Inc.--
Class A 1 .................. 365,940
6,100 SS&C Technologies, Inc. ..... 125,965
12,800 St. Mary Land & Exploration Co. 534,272
8,100 Stage Stores, Inc. 1 ........ 336,312
8,400 Stamps.com, Inc. 1 .......... 133,056
3,400 Standard Commercial Corp. ... 66,164
9,061 Standard Microsystems Corp. 1 161,558
3,600 Standard Motor Products, Inc. 56,880
5,200 Standard Register Co. ....... 73,424
3,600 Standex International Corp. 102,564
2,900 Stanley Furniture Co., Inc. 130,355
14,700 Star Scientific, Inc. 1,2.... 74,750
5,525 StarTek, Inc. ............... 157,186
4,300 State Auto Financial Corp. .. 111,155
1,881 State Bancorp, Inc. ......... 51,728
2,900 State Financial Services Corp.--
Class A .................... 87,290
7,875 Steak n Shake Co. 1.......... 158,130
14,830 Steel Dynamics, Inc. ........ 561,760
5,100 Steel Technologies, Inc. .... 140,301
11,496 Stein Mart, Inc. 1 .......... 196,122
2,300 Steinway Musical Instruments,
Inc. 1 ..................... 66,562
11,100 Stellent, Inc. 1 ............ 97,902
1,200 Stephan Chemical Co. ........ 29,232
27,100 STERIS Corp. 1 .............. 642,812
6,684 Sterling Bancorp ............ 188,823
18,925 Sterling Bancshares, Inc. ... 270,060
9,943 Sterling Financial Corp.--
Pennsylvania ............... 285,066
10,259 Sterling Financial Corp.--
Spokane1 ................... 402,768
4,500 Steven Madden Ltd. 1......... 84,870
12,400 Stewart & Stevenson Services,
Inc. ....................... 250,852
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
23
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
39,900 Stewart Enterprises, Inc.--
Class A 1 ..................$ 278,901
6,300 Stewart Information
Services Corp. ............. 262,395
15,925 Stillwater Mining Co. 1...... 179,316
8,679 Stone Energy Corp. 1 ........ 391,336
4,800 Stoneridge, Inc. 1 .......... 72,624
4,450 Stratasys, Inc. 1 ........... 149,342
5,500 Strategic Hotel Capital, Inc. 90,750
32,300 Stratex Networks, Inc. 1 .... 72,998
1,200 Strattec Security Corp. 1 ... 75,144
6,460 Strayer Education, Inc. ..... 709,243
17,900 Stride Rite Corp. ........... 199,943
8,700 Sturm Ruger & Co., Inc. ..... 78,561
3,100 Suffolk Bancorp ............. 107,973
9,800 Summit Properties, Inc. ..... 319,088
4,865 Sun Bancorp, Inc. 1 ......... 121,528
6,900 Sun Communities, Inc. ....... 277,725
5,725 Sunrise Assisted Living,
Inc. 1,2.................... 265,411
11,400 Sunstone Hotel Investors, Inc. 236,892
9,400 Sunterra Corp. 1,2 .......... 131,976
22,783 SuperGen, Inc. 1 ............ 160,620
25,101 Superior Energy Services,
Inc. 1 ..................... 386,806
8,300 Superior Industries
International, Inc. 2....... 241,115
3,048 Supertex, Inc. 1 ............ 66,142
17,200 Support.com, Inc. 1 ......... 114,552
5,500 Surewest Communications ..... 155,925
6,900 SurModics, Inc. 1,2.......... 224,319
21,147 Susquehanna Bancshares, Inc. 527,618
10,020 Swift Energy Co. 1........... 289,979
19,400 Swift Transportation Co.,
Inc. 1 ..................... 416,712
6,111 SWS Group, Inc. ............. 133,953
14,800 Sybron Dental Specialties,
Inc. 1 ..................... 523,624
65,200 Sycamore Networks, Inc. 1 ... 264,712
8,500 Sykes Enterprises, Inc. 1 ... 59,075
4,600 Symbion, Inc. 1 ............. 101,568
20,900 Symmetricom, Inc. 1 ......... 202,939
12,470 Symyx Technologies 1......... 375,098
8,600 Synaptics, Inc. 1 ........... 262,988
2,500 Syntel, Inc. ................ 43,850
13,900 Syntroleum Corp. 1 .......... 111,617
2,100 Sypris Solutions, Inc. ...... 32,151
2,900 Systemax, Inc. 1 ............ 21,286
17,500 Take-Two Interactive Software,
Inc. 1 ..................... 608,825
12,533 TALK America Holdings, Inc. 1 82,968
6,250 TALX Corp. .................. 161,188
10,200 Tanger Factory Outlet Centers,
Inc. ....................... 269,892
10,400 Tanox, Inc. 1 ............... 158,080
2,700 Tarragon Corp. 1,2 .......... 48,195
19,400 Taser International, Inc. 1,2 612,846
18,700 Taubman Centers, Inc. ....... 560,065
2,200 Taylor Capital Group, Inc. .. 73,700
9,100 TBC Corp. 1 ................. 252,980
18,000 Techne Corp. 1 .............. 700,200
SHARES SECURITY VALUE
- --------------------------------------------------------
3,300 Technical Olympic USA, Inc. $ 83,754
15,800 Technitrol, Inc. 1 .......... 287,560
7,541 Tecumseh Products Co.--Class A 360,460
2,300 Tejon Ranch Co. 1............ 93,840
19,400 Tekelec 1 ................... 396,536
14,022 Teledyne Technologies, Inc. 1 412,667
16,500 TeleTech Holdings, Inc. 1 ... 159,885
19,400 Telik, Inc. 1 ............... 371,316
9,400 Tempur-Pedic International,
Inc. 1 ..................... 199,280
2,600 Tennant Co. ................. 103,090
18,800 Tenneco Automotive, Inc. 1 .. 324,112
32,000 Terayon Communication
Systems, Inc. 1 ............ 86,720
19,668 Terex Corp. 1 ............... 937,180
22,800 Terra Industries, Inc. 1,2... 202,464
26,155 Tersoro Petroleum Corp. 1 ... 833,298
10,300 Tessera Technologies, Inc. 1 383,263
24,116 Tetra Tech, Inc. 1 .......... 403,702
8,350 TETRA Technologies, Inc. 1 .. 236,305
10,500 Texas Capital Bancshares,
Inc. 1 ..................... 227,010
8,247 Texas Industries, Inc. ...... 514,448
18,333 Texas Regional Bancshares,
Inc.--Class A .............. 599,122
2,600 Texas Roadhouse, Inc. 1 ..... 76,830
14,900 ThermoGenesis Corp. 1 ....... 94,466
13,300 Third Wave Technologies 1 ... 114,380
24,500 Thomas & Betts Corp. 1 ...... 753,375
4,700 Thomas Industries, Inc. ..... 187,624
4,200 Thomas Nelson, Inc. ......... 94,920
15,400 Thor Industries, Inc. ....... 570,570
20,860 Thoratec Laboratories Corp. 1 217,361
14,197 THQ, Inc. 1 ................. 325,679
7,200 Tier Technologies, Inc.--
Class B 1 .................. 66,600
9,400 TierOne Corp. ............... 233,590
22,200 Time Warner Telecommunications,
Inc.--Class A 1 ............ 96,792
1,800 TippingPoint Technologies,
Inc. 1 ..................... 84,060
33,100 Titan Corp. 1 ............... 536,220
1,900 Titanium Metals Corp. 1 ..... 45,866
21,000 TiVo, Inc. 1,2............... 123,270
6,900 Todco--Class A 1 ............ 127,098
2,430 Tompkins Trustco, Inc. ...... 129,981
13,044 Too, Inc. 1 ................. 319,056
10,996 Topps Co., Inc. ............. 107,211
9,800 Toro Co. .................... 797,230
31,790 Tower Automotive, Inc. 1,2... 75,978
5,600 Town & Country Trust ........ 154,728
13,300 Tractor Supply Co. 1......... 494,893
9,400 Tradestation Group, Inc. 1 .. 65,988
11,700 Trammel Crow Co. 1........... 211,887
11,409 Trans World Entertainment
Corp. 1 .................... 142,270
4,400 TransAct Technologies, Inc. 1 93,984
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
24
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
16,606 Transaction Systems Architecture,
Inc.--Class A 1 ............$ 329,629
11,845 Transkaryotic Therapies, Inc. 1 300,745
54,300 Transmeta Corp. 1,2 ......... 88,509
5,000 TransMontaigne Oil Co. 1..... 30,650
600 Travelzoo, Inc. 1,2.......... 57,258
5,050 TRC Cos., Inc. 1 ............ 85,850
11,055 Tredegar Industries, Inc. ... 223,422
4,200 Trex Co., Inc. 1 ............ 220,248
3,800 Triad Guaranty, Inc. 1 ...... 229,824
12,900 Triarc Cos., Inc.--Class B .. 158,154
5,000 TriCo Bancshares ............ 117,000
8,700 Trident Microsystems, Inc. 1 145,464
20,009 Trimble Navigation Ltd. 1.... 661,097
7,802 Trimeris, Inc. 1 ............ 110,554
16,112 Trinity Industries, Inc. .... 549,097
13,500 Tripath Imaging, Inc. 1 ..... 121,095
15,500 Tripath Technology, Inc. 1 .. 19,375
50,878 TriQuint Semiconductor, Inc. 1 226,407
21,000 Triton PCS Holdings, Inc.--
Class A 1 .................. 71,820
6,000 Triumph Group, Inc. 1 ....... 237,000
15,700 TriZetto Group, Inc. 1 ...... 149,150
29,883 Trustco Bank Corp. .......... 412,087
21,500 Trustmark Corp. ............. 668,005
18,300 TTM Technologies, Inc. 1 .... 215,940
11,800 Tuesday Morning Corp. 1 ..... 361,434
23,200 Tumbleweed Communications
Corp. 1 .................... 77,488
22,890 Tupperware Corp. ............ 474,281
16,200 Tyler Technologies, Inc. 1 .. 135,432
14,700 U-Store-It Trust ............ 255,045
11,800 U.S. Restaurant Properties, Inc. 213,108
3,700 U.S. Xpress Enterprises, Inc.--
Class A 1 .................. 108,410
3,908 U.S.B. Holding Co., Inc. .... 97,309
16,600 U.S.I. Holdings Corp. 1 ..... 192,062
13,500 UAP Holding Corp. 1 ......... 233,145
31,900 UbiquiTel, Inc. 1 ........... 227,128
16,500 UICI ........................ 559,350
4,700 UIL Holdings Corp. .......... 241,110
4,200 Ulticom, Inc. 1 ............. 67,326
7,100 Ultimate Software Group,
Inc. (The) 1 ............... 90,028
7,400 Ultralife Batteries, Inc. 1 143,930
9,928 Ultratech, Inc. 1 ........... 187,143
7,192 UMB Financial Corp. ......... 407,499
19,731 Umpqua Holdings Corp. ....... 497,419
3,500 UniFirst Corp. .............. 98,980
2,200 Union Bankshares Corp. ...... 84,546
16,300 Unisource Energy Corp. ...... 392,993
16,570 Unit Corp. 1 ................ 633,140
7,600 United Auto Group, Inc. ..... 224,884
17,200 United Bankshares, Inc. ..... 656,180
11,100 United Community Banks, Inc. 298,923
SHARES SECURITY VALUE
- --------------------------------------------------------
13,542 United Community Financial Corp. 151,670
6,800 United Fire & Casualty Co. .. 229,228
5,000 United Industrial Corp. ..... 193,700
17,300 United Natural Foods, Inc. 1 538,030
20,950 United Online, Inc. 1 ....... 241,554
2,400 United PanAm Financial Corp. 1 45,744
17,700 United Rentals, Inc. 1 ...... 334,530
15,151 United Stationers, Inc. 1 ... 699,976
12,500 United Surgical Partners
International, Inc. 1 ...... 521,250
7,428 United Therapeutics Corp. 1 . 335,374
13,500 Universal American Financial
Corp. 1 .................... 208,845
6,600 Universal Compression Holdings,
Inc. 1 ..................... 230,406
10,168 Universal Corp. ............. 486,437
8,615 Universal Display Corp. 1 ... 77,535
4,241 Universal Electronics, Inc. 1 74,642
7,200 Universal Forest Products, Inc. 312,480
4,600 Universal Health Realty Income
Trust, REIT ................ 147,798
6,600 Universal Technical Institute,
Inc. 1 ..................... 251,592
2,300 Univest Corporation of
Pennsylvania ............... 105,846
9,917 Unizan Financial Corp. ...... 261,313
18,900 UNOVA, Inc. 1 ............... 477,981
6,900 Urologix, Inc. 1 ............ 44,643
12,700 URS Corp. 1 ................. 407,670
5,900 Urstadt Biddle Properties--
Class A .................... 100,595
10,064 USA Mobility, Inc. 1 ........ 355,360
5,000 USANA Health Sciences, Inc. 1,2 171,000
32,833 USEC, Inc. .................. 318,152
11,651 USF Corp. ................... 442,155
12,800 USG Corp. 1,2 ............... 515,456
9,400 Vail Resorts, Inc. 1 ........ 210,748
21,200 Valassis Communications,
Inc. 1 ..................... 742,212
33,500 Valeant Pharmaceuticals
International .............. 882,725
23,800 Valence Technology, Inc. 1,2 74,018
7,040 Valhi, Inc. ................. 113,274
5,800 Valmont Industries, Inc. .... 145,638
400 Value Line, Inc. ............ 15,695
31,000 ValueClick, Inc. 1 .......... 413,230
9,200 ValueVision International,
Inc. 1 ..................... 127,972
14,206 Varian Semiconductor Equipment
Associates, Inc. 1 ......... 523,491
15,228 Varian, Inc. 1 .............. 624,500
11,294 Vector Group Ltd. ........... 187,819
12,000 Veeco Instruments, Inc. 1 ... 252,840
5,896 Ventana Medical Systems, Inc. 1 377,285
8,700 Ventiv Health, Inc. 1 ....... 176,784
5,300 Verint Systems, Inc. 1 ...... 192,549
12,500 Veritas DGC, Inc. 1 ......... 280,125
10,317 Verity, Inc. 1 .............. 135,359
50,300 Verso Technologies, Inc. 1 .. 36,216
34,500 Vertex Pharmaceuticals, Inc. 1 364,665
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
25
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
SHARES SECURITY VALUE
- --------------------------------------------------------
3,172 Vertrue, Inc. 1,2............$ 119,806
11,800 Vesta Insurance Group, Inc. 43,424
9,200 ViaSat, Inc. 1 .............. 223,284
11,500 Viasys Healthcare, Inc. 1 ... 218,500
6,774 Vicor Corp. ................. 88,807
19,900 Vicuron Pharmaceuticals,
Inc. 1 ..................... 346,459
87,400 Vignette Corp. 1 ............ 121,486
14,500 Viisage Technology, Inc. 1 .. 130,645
21,490 Vintage Petroleum, Inc. ..... 487,608
24,700 Vion Pharmaceuticals, Inc. 1,2 115,843
3,625 Virginia Commerce Bancorp,
Inc. 1 ..................... 102,660
1,900 Virginia Financial Group,
Inc. ....................... 69,654
5,000 VistaCare, Inc.--Class A 1 .. 83,150
50,700 Visteon Corp. ............... 495,339
19,300 VISX, Inc. 1 ................ 499,291
2,000 Vital Signs, Inc. ........... 77,840
84,500 Vitesse Semiconductor Corp. 1 298,285
4,100 Vnus Medical Technologies 1.. 55,432
2,400 Volt Information Sciences,
Inc. 1 ..................... 70,536
2,700 Volterra Semiconductor Corp. 1 59,819
11,100 W-H Energy Services, Inc. 1 248,196
26,500 W.R. Grace & Co. 1........... 360,665
11,400 Wabash National Corp. 1 ..... 307,002
17,271 Wabtec Corp. ................ 368,218
10,700 Walter Industries, Inc. ..... 360,911
19,700 Warnaco Group, Inc. 1 ....... 425,520
11,500 Washington Group International,
Inc. 1 ..................... 474,375
17,300 Washington Real Estate
Investment Trust ........... 585,951
4,000 Washington Trust Bancorp, Inc. 117,240
18,450 Waste Connections, Inc. 1 ... 631,913
16,500 WatchGuard Technologies,
Inc. 1 ..................... 73,095
2,700 Water Pik Technologies, Inc. 1 47,871
10,453 Watsco, Inc.--Class A ....... 368,155
12,700 Watson Wyatt and Co. Holdings 342,265
11,180 Watts Industries, Inc.--Class A 360,443
18,780 Wausau-Mosinee Paper Co. .... 335,411
14,695 Waypoint Financial Corp. .... 416,603
12,700 WCI Communities, Inc. 1 ..... 373,380
7,900 WD-40 Co. ................... 224,439
11,500 WebEx Communications, Inc. 1,2 273,470
22,000 webMethods, Inc. 1 .......... 158,620
9,000 Websense, Inc. 1 ............ 456,480
3,600 Weis Markets, Inc. .......... 138,852
2,900 WellCare Health Plans, Inc. 1 94,250
15,500 Wellman, Inc. ............... 165,695
19,600 Werner Enterprises, Inc. .... 443,744
8,500 WesBanco, Inc. .............. 271,745
9,277 WESCO International, Inc. 1 274,970
4,305 West Bancorp ................ 75,811
6,800 West Coast Bancorp .......... 172,788
SHARES SECURITY VALUE
- --------------------------------------------------------
6,400 West Marine, Inc. 1 .........$ 158,400
10,672 West Pharmaceutical Services,
Inc. ....................... 267,120
14,200 Westamerica Bankcorporation 828,002
22,900 Westell Technologies, Inc. 1 155,720
1,500 Western Sierra Bancorp 1 .... 57,533
3,800 Westlake Chemical Corp. ..... 126,920
19,800 WGL Holdings, Inc. .......... 610,632
3,900 Wheeling-Pittsburgh Corp. 1 . 150,306
10,000 Whiting Petroleum Corp. 1 ... 302,500
14,189 Wild Oats Market, Inc. 1 .... 125,005
1,800 William Lyon Homes, Inc. 1 .. 126,432
7,500 Wilshire Bancorp, Inc. 1 .... 124,050
9,800 Wilson Greatbatch Technologies,
Inc. 1 ..................... 219,716
30,900 Wind River Systems, Inc. 1 .. 418,695
29,800 Winn-Dixie Stores, Inc. 2.... 135,590
9,994 Winnebago Industries ........ 390,366
10,100 Winston Hotels, Inc. ........ 119,281
9,650 Wintrust Financial Corp. .... 549,664
17,400 Wireless Facilities, Inc. 1 164,256
9,900 Witness Systems, Inc. 1 ..... 172,854
15,800 WJ Communications, Inc. 1 ... 54,352
7,200 WMS Industries, Inc. 1,2..... 241,488
15,200 Wolverine World Wide, Inc. .. 477,584
3,267 Woodhead Industries, Inc. ... 52,370
4,100 Woodward Governor Co. ....... 293,601
7,600 World Acceptance Corp. 1 .... 209,076
5,300 World Fuel Services Corp. ... 263,940
4,922 World Wrestling Entertainment,
Inc. ....................... 59,704
12,000 Wright Medical Group, Inc. 1 342,000
2,700 WSFS Financial Corp. ........ 162,864
8,100 X-Rite, Inc. ................ 129,681
21,048 Yankee Candle Co., Inc. 1 ... 698,373
4,900 Yardville National Bancorp .. 167,874
15,800 York International Corp. .... 545,732
8,761 Young Broadcasting Corp.--
Class A 1 .................. 92,516
1,100 Young Innovations, Inc. ..... 37,103
20,600 Zale Corp. 1 ................ 615,322
5,100 Zenith National Insurance Corp. 254,184
17,100 Zhone Technologies, Inc. 1 .. 44,289
14,700 Zila, Inc. 1 ................ 62,916
3,500 ZipRealty, Inc. 1 ........... 62,545
11,400 Zix Corp. 1,2 ............... 58,710
4,700 Zoll Medical Corp. 1 ........ 161,680
16,065 Zoran Corp. 1 ............... 186,033
7,222 Zygo Corp. 1 ................ 85,147
6,800 Zymogenetics, Inc. 1 ........ 156,400
------------
TOTAL COMMON STOCKS
(Cost $384,762,025) ................... 472,043,466
------------
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
26
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS December 31, 2004
PRINCIPAL
AMOUNT SECURITY VALUE
- --------------------------------------------------------
SHORT-TERM INSTRUMENTS--1.71%
U.S. TREASURY BILLS 3--1.71%
$ 294,000 1.83%, 01/06/05 ...........$ 293,954
1,387,000 1.88%, 02/10/05 ........... 1,384,164
4,976,000 2.06%, 02/17/05 ........... 4,963,368
739,000 1.88%, 02/24/05 ........... 736,955
905,000 2.20%, 03/24/05 4 ......... 900,656
------------
TOTAL SHORT-TERM INSTRUMENTS
(Cost $8,278,427) ..................... 8,279,097
------------
SHARES SECURITY VALUE
- --------------------------------------------------------
SECURITIES LENDING COLLATERAL--3.41%
INVESTMENT IN AFFILIATED INVESTMENT
COMPANIES--3.41%
16,561,031 Daily Assets Fund
Institutional 2.25%6,7
(Cost $16,561,031) ........$ 16,561,031
------------
TOTAL INVESTMENTS
(Cost $409,601,483) .........102.38% $496,883,594
LIABILITIES IN EXCESS OF OTHER
ASSETS ........................ (2.38) (11,556,468)
------ ------------
NET ASSETS .....................100.00% $485,327,126
====== ============
- -------------------------------------------------------
1 Non-income producing security for the period ended
December 31, 2004.
2 All or a portion of this security was on loan. The value of all securities
loaned at December 31, 2004 amounted to $16,017,994, which is 3.30% of total
net assets.
3 Rates shown represent annualized yield at time of purchase, not a coupon rate.
4 Pledged as collateral for future contracts.
5 Closed-end mutual fund.
6 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.
7 Represents collateral held in connection with security lending.
REIT--Real Estate Investment Trust
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
27
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
DECEMBER 31, 2004
ASSETS
Investments at value (cost $393,040,452)1 ................ $480,322,563
Investments in affiliated issuers, at value
(cost $16,561,031) 2 .................................... 16,561,031
Cash ..................................................... 10,071,968
Receivable for capital shares sold ....................... 4,942,492
Dividends and interest receivable ........................ 589,952
Variation margin receivable for future contracts ......... 6,525
Other assets ............................................. 1,265
------------
Total assets ................................................ 512,495,796
------------
LIABILITIES
Payable for securities purchased ......................... 10,175,247
Payable upon return of securities loaned ................. 16,561,031
Payable for capital shares redeemed ...................... 167,898
Advisory fees payable .................................... 136,734
12b-1 fees payable ....................................... 7,058
Accrued expenses and other ............................... 120,702
------------
Total liabilities ........................................... 27,168,670
------------
NET ASSETS .................................................. $485,327,126
============
COMPOSITION OF NET ASSETS
Paid-in capital .......................................... $388,413,458
Undistributed net investment income ...................... 2,738,283
Accumulated net realized gain on investments and
futures transactions .................................... 6,713,674
Net unrealized appreciation of investments and
futures contracts ....................................... 87,461,711
------------
NET ASSETS .................................................. $485,327,126
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(net assets divided by shares outstanding)
Class A 3 ................................................ $ 14.35
============
Class B 4 ................................................ $ 14.34
============
- --------------------------------------------------------------------------------
1 Including $16,017,994 of securities loaned.
2 Represents collateral on securities loaned.
3 Net asset value, redemption price and offering price per share (based on net
assets of $450,147,515 and 31,370,234 shares outstanding at December 31, 2004;
$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 $35,179,611 and 2,453,490 shares outstanding at December 31, 2004;
$0.001 par value, unlimited number of shares authorized).
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
28
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE
YEAR ENDED
DECEMBER 31, 2004
INVESTMENT INCOME
Dividends (net of foreign tax withheld of $1,491) ............ $ 4,912,689
Interest ..................................................... 94,903
Securities lending income including income from
Daily Assets Fund Institutional ............................. 209,595
-----------
TOTAL INVESTMENT INCOME ......................................... 5,217,187
-----------
EXPENSES
Advisory fees ................................................ 1,372,564
Administration and services fees ............................. 220,518
Transfer agent fees .......................................... 94,568
Printing and shareholder reports ............................. 77,502
Professional fees ............................................ 66,150
12b-1 fees (Class B Shares) .................................. 62,284
Trustees fees ................................................ 33,611
Custodian fees ............................................... 23,000
Insurance .................................................... 6,774
Miscellaneous ................................................ 5,995
-----------
Total expenses .................................................. 1,962,966
Less: fee waivers ............................................... (114,333)
-----------
Net expenses .................................................... 1,848,633
-----------
NET INVESTMENT INCOME ........................................... 3,368,554
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND
FUTURES CONTRACTS
Net realized gain from:
Investment transactions .................................... 20,844,829
Futures transactions ....................................... 6,415
Net change in unrealized appreciation/depreciation of
investments and futures contracts .......................... 41,635,638
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND
FUTURE CONTRACTS ............................................... 62,486,882
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ...................... $65,855,436
===========
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
29
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
2004 2003
INCREASE IN NET ASSETS FROM:
OPERATIONS
Net investment income .............................................. $ 3,368,554 $ 1,853,277
Net realized gain (loss) from investment
and futures transactions ......................................... 20,851,244 (6,007,971)
Net change in unrealized appreciation/depreciation
on investments and futures contracts ............................. 41,635,638 83,449,784
------------ ------------
Net increase in net assets from operations ......................... 65,855,436 79,295,090
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income:
Class A Shares ................................................... (1,595,565) (1,488,587)
Class B Shares ................................................... (45,001) (26,556)
------------ ------------
Total distributions ................................................... (1,640,566) (1,515,143)
------------ ------------
CAPITAL SHARE TRANSACTIONS
Net increase resulting from Class A Shares ......................... 73,841,853 97,560,900
Net increase resulting from Class B Shares ......................... 13,511,889 12,403,741
------------ ------------
Net increase in net assets from capital share transactions ......... 87,353,742 109,964,641
------------ ------------
TOTAL INCREASE IN NET ASSETS ....................................... 151,568,612 187,744,588
------------ ------------
NET ASSETS
Beginning of year .................................................. 333,758,514 146,013,926
------------ ------------
End of year (including undistributed net investment income
of $2,738,283 and $1,535,057 respectively) ....................... $485,327,126 $333,758,514
============ ============
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
30
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
CLASS A SHARES
FOR THE YEARS ENDED DECEMBER 31,
2004 2003 2002 2001 2000
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE, BEGINNING OF YEAR .............. $12.24 $ 8.45 $10.73 $11.10 $11.61
------ ------ ------ ------ ------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
Net investment income 1 ...................... 0.11 0.09 0.10 0.06 0.10
Net realized and unrealized gain (loss) on
investments and futures transactions ....... 2.06 3.79 (2.31) 0.16 (0.55)
------ ------ ------ ------ ------
Total from investment operations ................ 2.17 3.88 (2.21) 0.22 (0.45)
------ ------ ------ ------ ------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ........................ (0.06) (0.09) (0.06) (0.06) --
Net realized gain from investment
and futures transactions ................... -- -- (0.01) (0.53) (0.06)
------ ------ ------ ------ ------
Total distributions ............................. (0.06) (0.09) (0.07) (0.59) (0.06)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR .................... $14.35 $12.24 $ 8.45 $10.73 $11.10
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN 2 ....................... 17.76% 46.42% (20.58)% 2.07% (3.87)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of year (000s omitted) ....... $450,148 $316,218 $143,847 $151,742 $104,095
Ratios to average net assets:
Net investment income ...................... 0.87% 0.91% 1.09% 1.07% 1.13%
Expenses after waivers and/or
reimbursements .......................... 0.45% 0.45% 0.45% 0.45% 0.45%
Expenses before waivers and/or
reimbursements .......................... 0.48% 0.61% 0.61% 0.63% 0.69%
Portfolio turnover rate ...................... 22% 28% 40% 44% 51%
- --------------------------------------------------------------------------------
1 Calculated based on average shares.
2 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.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
31
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
CLASS B SHARES FOR THE PERIOD
APRIL 30, 2002 1
FOR THE YEARS ENDED DECEMBER 31, THROUGH
2004 2003 DECEMBER 31, 2002
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE, BEGINNING OF PERIOD ............ $12.23 $ 8.44 $11.23
------ ------ ------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
Net investment income 2 ...................... 0.08 0.07 0.06
Net realized and unrealized gain (loss) on
investments and futures transactions ....... 2.05 3.80 (2.79)
------ ------ ------
Total from investment operations ................ 2.13 3.87 (2.73)
------ ------ ------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ........................ (0.02) (0.08) (0.05)
Net realized gain on investment
and futures transactions ................... -- -- (0.01)
------ ------ ------
Total distributions ............................. (0.02) (0.08) (0.06)
------ ------ ------
NET ASSET VALUE, END OF PERIOD .................. $14.34 $12.23 $ 8.44
====== ====== ======
TOTAL INVESTMENT RETURN 3 ....................... 17.48% 46.05% (24.34)%4
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period
(000s omitted) ............................. $35,180 $17,540 $2,167
Ratios to average net assets:
Net investment income ...................... 0.66% 0.66% 1.11%5
Expenses after waivers
and/or reimbursements ................... 0.70% 0.70% 0.70%5
Expenses before waivers
and/or reimbursements ................... 0.73% 0.87% 0.88%5
Portfolio turnover rate ...................... 22% 28% 40%
- --------------------------------------------------------------------------------
1 Commencement of operations.
2 Calculated based on average shares.
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
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 Annualized.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
32
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
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 Small Cap 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 Russell 2000(R) Index,
which emphasizes stocks of small US companies.
B. VALUATION OF SECURITIES
The net asset value of shares of the Fund is computed as of the close of regular
trading on the New York Stock Exchange on each day the Exchange is open for
trading (the 'Value Time').
An equity security is valued at its most recent sale price on the relevant
exchange or over-the-counter ('OTC') market as of the Value Time. Lacking any
sales, the security is valued at the calculated mean between the most recent bid
quotation and the most recent asked quotation (the 'Calculated Mean') on such
exchange or OTC market as of the Value Time. If it is not possible to determine
the Calculated Mean, the security is valued at the most recent bid quotation on
such exchange or OTC market as of the Value Time. In the case of certain foreign
exchanges or OTC markets, the closing price reported by the exchange or OTC
market (which may sometimes be referred to as the 'official close' or the
'official closing price' or other similar term) will be considered the most
recent sale price. If a security is traded on more than one exchange, or upon
one or more exchanges and in the OTC market, quotations are taken from the
market in which the security is traded most extensively.
Money market instruments purchased with an original or remaining maturity of
sixty days or less, maturing at par, are valued at amortized cost.
If market quotations for a portfolio asset are not readily available or the
value of a portfolio asset as determined in accordance with Board approved
procedures does not represent the fair market value of the portfolio asset, the
value of the portfolio asset is taken to be an amount which, in the opinion of
the Fund's Pricing Committee (or, in some cases, the Board's Valuation
Committee), represents fair market value. The value of other portfolio holdings
owned by the Fund is determined in a manner which is intended to fairly reflect
the fair market value of the asset on the valuation date, based on valuation
procedures adopted by the Fund's Board and overseen primarily by the Fund's
Pricing Committee.
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 is recorded on the ex-dividend date. 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.
- --------------------------------------------------------------------------------
33
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
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. 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.
G. 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 income, net of
allocations to the lending agent and borrower, 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 December 31, 2004, $16,561,031 of cash
collateral was invested in the Daily Assets Fund Institutional.
H. ESTIMATES
In preparing its financial statements in conformity with US generally accepted
accounting principles, 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 0.35%.
Northern Trust Investments, N.A. ('NTI') acts as investment sub-advisor for the
Fund. As the Fund's investment sub-advisor, NTI makes the Fund's investment
decisions. It buys and sells securities for the Fund and conducts the research
that leads to these purchase and sale decisions. DeAM, Inc. pays a fee to NTI
for acting as investment sub-advisor to the Fund.
The Advisor has contractually agreed to waive its fees and/or reimburse expenses
of the Fund, to the extent necessary, to limit all expenses to 0.45% of average
daily net assets for Class A Shares and 0.70% of average daily net assets for
Class B Shares until April 30, 2005.
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 December 31, 2004,
$649,578 was subject to repayment to the Advisor.
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.
The Fund paid insurance premiums to an unaffiliated insurance broker in 2002 and
2003. This broker in turn paid a portion of its commissions to an affiliate of
the Advisor, which performed certain insurance brokerage services for the
broker. The Advisor has agreed to reimburse the Fund in 2005 for the portion of
commissions (plus interest) paid to the affiliate of the Advisor attributable to
the premiums paid by the Fund. The amounts for 2002 and 2003 were $160 and $48
respectively.
- --------------------------------------------------------------------------------
34
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
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 Year Ended For the Year Ended
December 31, 2004 December 31, 2003
-------------------------- --------------------------
Shares Amount Shares Amount
---------- ------------ ----------- ------------
Sold 13,729,595 $177,408,874 18,082,233 $182,226,405
Reinvested 128,364 1,595,565 171,892 1,488,587
Redeemed (8,331,382) (105,162,586) (9,439,085) (86,154,092)
-------------------------- ----------- ------------
Net increase 5,526.577 $ 73,841,853 8,815,040 $ 97,560,900
========== ============ =========== ============
Class B Shares
For the Year Ended For the Year Ended
December 31, 2004 December 31, 2003
-------------------------- --------------------------
Shares Amount Shares Amount
---------- ------------ ----------- ------------
Sold 2,396,106 $30,710,230 1,741,080 $18,140,402
Reinvested 3,617 45,001 3,069 26,607
Redeemed (1,380,962) (17,243,342) (566,181) (5,763,268)
---------- ----------- --------- -----------
Net increase 1,018,761 $13,511,889 1,177,968 $12,403,741
========== =========== ========= ===========
NOTE 5--PURCHASE AND SALE OF
INVESTMENT SECURITIES
The aggregate cost of purchases and proceeds from sales of investments, other
than short-term obligations, for the year ended December 31, 2004, were
$183,209,124 and $84,919,706, respectively.
NOTE 6--FEDERAL INCOME TAX
At December 31, 2004, 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 adjustments related to dividends and other non-taxable
distributions received by the Fund, and reclassification of Real Estate
Investment Trust ('REIT') dividends and REIT return of capital adjustments.
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
- -------------- ------------- --------
($524,762) ($68,481) $593,243
For federal income tax purposes, the tax basis of investments held at December
31, 2004 was $414,833,046. The net unrealized appreciation for all securities
based on tax cost was $82,050,548. The aggregate gross unrealized appreciation
for all investments at December 31, 2004 was $109,017,377 and the aggregate
gross unrealized depreciation for all investments was $26,966,829. The
difference between book basis and tax-basis unrealized appreciation/depreciation
is primarily attributable to the tax deferral of losses on wash sales and REIT
return of capital adjustments.
Income and capital gains distributions are determined in accordance with federal
income tax regulations, which may differ from US generally accepted accounting
principles.
Distributions during the years ended December 31, 2004 and 2003 were
characterized as follows for tax purposes:
Distributions paid from: 2004 2003
- ----------------------- ---- ----
Ordinary income $1,640,566 $1,515,143
At December 31, 2004, the components of distributable earnings on a tax basis
were as follows:
Undistributed ordinary income $ 3,582,436
Undistributed capital gains $11,873,925
Unrealized appreciation/(depreciation) $81,457,307
NOTE 7--EXPENSE REDUCTIONS
The Fund has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Fund's custodian expenses. During the year ended December 31, 2004, the
Fund's custodian fees were reduced by $201 for custody credits earned.
NOTE 8--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
- --------------------------------------------------------------------------------
35
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
temporary or emergency purposes, including the meeting of redemption requests
that otherwise might require the untimely disposition of securities. The
Participants are charged an annual commitment fee which is allocated, based upon
net assets, among each of the Participants. Interest is calculated at the
Federal Funds Rate plus 0.5%. The Fund may borrow up to a maximum of 33% of its
net assets under the agreement.
There were no significant borrowings during the year ended December 31, 2004.
NOTE 9--OPEN FUTURES
The Fund had the following open contracts at December 31, 2004:
Type of Market Unrealized
Future Expiration Contracts Position Value Appreciation
------ ---------- --------- -------- ------ -------------
Russell 2000(R) March
Index Future 2005 29 Long $9,482,275 $179,600
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 above 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 December 31, 2004, the Fund pledged securities with a value of $900,656 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. It is not possible to determine what
the outcome of these inquiries will be or what the effect, if any, would be on
the funds or their advisors. Publicity about mutual fund practices arising from
these industry-wide inquiries serves as the general basis of a number of private
lawsuits against the Scudder funds. These lawsuits, which previously have been
reported in the press, involve purported class action and derivative lawsuits,
making various allegations and naming as defendants various persons, including
certain Scudder funds, the funds' investment advisors and their affiliates,
certain individuals, including in some cases fund Trustees/Directors, officers,
and other parties. Each Scudder fund's investment advisor has agreed to
indemnify the applicable Scudder funds in connection with these lawsuits, or
other lawsuits or regulatory actions that may be filed making allegations
similar to these lawsuits regarding market timing, revenue sharing, fund
valuation or other subjects arising from or related to the pending inquiries.
Based on currently available information, the funds' investment advisors believe
the likelihood that the pending lawsuits will have a material adverse financial
impact on a Scudder fund is remote and such actions are not likely to materially
affect their ability to perform under their investment management agreements
with the Scudder funds.
NOTE 11--SUBSEQUENT EVENT
Effective January 3, 2005, the Scudder VIT Small Cap Index Fund ('VIT Fund')
terminated the Transfer Agency, Fund Accounting, and Administration agreements
with PFPC Inc. and the Distribution agreement with PFPC Distributors, Inc.
(collectively, the 'PFPC Agreements').
Contemporaneously with the termination of the PFPC Agreements, the VIT Fund
entered into new agreements to replace PFPC Inc. and PFPC Distributors, Inc. as
follows: Scudder Investments Service Company ('SISvC') became the VIT Fund's
transfer agent; Investment Company Capital Corporation ('ICCC') became the VIT
Fund's administrator and fund accounting agent; and Scudder Distributors Inc.
('SDI') became the VIT Fund's principal underwriter. ICCC has engaged State
Street Corporation to serve as the VIT Fund's sub-accounting agent.
The Board of Trustees of the VIT Fund approved the termination of the PFPC
Agreements and authorized the VIT Fund to enter into agreements with SISvC, ICCC
and SDI.
SISvC, ICCC and SDI are affiliated persons of the VIT Fund's investment advisor.
It is not expected that the new arrangements will increase the fees that were
paid by shareholders for services performed by PFPC Inc. and PFPC Distributors,
Inc.
- --------------------------------------------------------------------------------
36
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Trustees
Scudder Investments VIT Funds--
Scudder VIT Small Cap Index Fund
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Scudder VIT Small Cap Index Fund (the 'Fund') as
of December 31, 2004, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Fund's
internal control over financial reporting. Accordingly, we express no such
opinion. An audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements and financial
highlights, assessing the accounting principles used and significant estimates
made by management and evaluating the overall financial statement presentation.
Our procedures included confirmation of securities owned as of December 31,
2004, by correspondence with the custodian and brokers. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Scudder VIT Small Cap Index Fund at December 31, 2004, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and its financial highlights for each of
the periods indicated therein, in conformity with US generally accepted
accounting principles.
/S/ SIGNATURE
Ernst & Young LLP
Boston, Massachusetts
February 8, 2005
- -------------------------------------------------------------------------------
37
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
TRUSTEES AND OFFICERS OF THE TRUST
The overall business and affairs of the Fund are supervised by its Board of
Trustees. The Board approves all significant agreements between the Fund and
persons or companies furnishing services to the Fund, including the Fund's
agreements with its investment advisor, administrator, distributor, custodian
and transfer agent. The Board of Trustees and the executive officers are
responsible for exercising the Fund's powers except those reserved for the
shareholders and those assigned to the Fund's advisor, DeAM, Inc., or other
service providers. Each Trustee holds office until he or she resigns, is removed
or a successor is elected and qualified. Each Officer is annually elected to
serve until he or she resigns, is removed or a successor has been duly elected
and qualified.
The following information is provided for each Trustee of the Fund. The first
section of the table lists information for each Trustee who is not an
'interested person' of the Fund (as defined in the 1940 Act) (an 'Independent
Trustee'). Information for each Non-Independent Trustee (an 'Interested
Trustee') follows. The Interested Trustee is considered to be an interested
person as defined by the 1940 Act because of his employment with either the
Fund's advisors and/or underwriter or their affiliates. The mailing address for
the Trustees and Officers with respect to Fund operations is One South Street,
Baltimore, Maryland, 21202.
NAME, DATE OF BIRTH, NUMBER OF
POSITION WITH THE FUNDS IN THE
TRUST AND LENGTH OF BUSINESS EXPERIENCE AND DIRECTORSHIPS FUND COMPLEX
TIME SERVED 1,2 DURING THE PAST 5 YEARS OVERSEEN
- ---------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ---------------------------------------------------------------------------------------------------
Joseph R. Hardiman Private Equity Investor (January 1997 to 54
5/27/37 present); Director, Corvis Corporation 3
Chairman since 2004 and (optical networking equipment) (July 2000 to
Trustee since 2002 present), Brown Investment Advisory & Trust
Company (investment advisor) (February 2001
to present), The Nevis Fund (registered
investment company) (July 1999 to present),
and ISI Family of Funds (registered
investment companies) (March 1998 to
present). Formerly, Director, Soundview
Technology Group Inc. (investment banking)
(July 1998 to January 2004) and Director,
Circon Corp.3 (medical instruments) (November
1998 to January 1999); President and Chief
Executive Officer, The National Association
of Securities Dealers, Inc. and The NASDAQ
Stock Market, Inc. (1987-1997); Chief
Operating Officer of Alex. Brown & Sons
Incorporated (now Deutsche Bank Securities
Inc.) (1985-1987); General Partner, Alex.
Brown & Sons Incorporated (now Deutsche Bank
Securities Inc.) (1976-1985).
- ---------------------------------------------------------------------------------------------------
Richard R. Burt Chairman, Diligence LLC (international 56
2/03/47 information collection and risk-management
Trustee since 2002 firm (September 2002 to present); Chairman,
IEP Advisors, Inc. (July 1998 to present);
Member of the Board, Hollinger International,
Inc.3 (publishing) (September 1995 to
present), HCL Technologies Limited
(information technology) (April 1999 to
present), UBS Mutual Funds (formerly known as
Brinson and Mitchell Hutchins families of
funds) (registered investment companies)
(September 1995 to present); and Member,
Textron Inc.3 International Advisory Council
(July 1996 to present). Formerly, Partner,
McKinsey & Company (consulting) (1991-1994)
and US Chief Negotiator in Strategic Arms
Reduction Talks (START) with former Soviet
Union and US Ambassador to the Federal
Republic of Germany (1985-1991); Member of
the Board, Homestake Mining 3 (mining and
exploration) (1998 to February 2001), Archer
Daniels Midland Company 3 (agribusiness
operations) (October 1996 to June 2001) and
Anchor Gaming (gaming software and equipment)
(March 1999 to December 2001); Chairman of
the Board, Weirton Steel Corporation 3 (April
1996-2004).
- ---------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
38
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
TRUSTEES AND OFFICERS OF THE TRUST
NAME, DATE OF BIRTH, NUMBER OF
POSITION WITH THE FUNDS IN THE
TRUST AND LENGTH OF BUSINESS EXPERIENCE AND DIRECTORSHIPS FUND COMPLEX
TIME SERVED 1,2 DURING THE PAST 5 YEARS OVERSEEN
- ---------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ---------------------------------------------------------------------------------------------------
S. Leland Dill Trustee, Phoenix Euclid Market Neutral Funds 54
3/28/30 (since May 1998), Phoenix Funds (24
Trustee since 2002 portfolios) (since May 2004) (registered
investment companies); Retired (since 1986).
Formerly, Partner, KPMG Peat Marwick (June
1956 to June 1986); Director, Vintners
International Company Inc. (wine vintner)
(June 1989 to May 1992), Coutts (USA)
International (January 1992 to March 2000),
Coutts Trust Holdings Ltd., Coutts Group
(private bank) (March 1991 to March 1999);
General Partner, Pemco (investment company)
(June 1979 to June 1986); Trustee, Phoenix
Zweig Series Trust (September 1989 to May
2004).
- ---------------------------------------------------------------------------------------------------
Martin J. Gruber Nomura Professor of Finance, Leonard N. Stern 54
7/15/37 School of Business, New York University
Trustee since 2002 (since September 1964); Trustee (since
January 2000) and Chairman of the Board
(since February 2004), CREF (pension fund);
Trustee of the TIAA-CREF Mutual funds (53
portfolios) (since February 2004); Director,
Japan Equity Fund, Inc. (since January 1992),
Thai Capital Fund, Inc. (since January 2000)
and Singapore Fund, Inc. (since January 2000)
(registered investment companies). Formerly,
Trustee, TIAA (pension fund) (January
1996-January 2000); Director, S.G. Cowen
Mutual Funds (January 1985 to January 2001).
- ---------------------------------------------------------------------------------------------------
Richard J. Herring Jacob Safra Professor of International 54
2/18/46 Banking and Professor, Finance Department,
Trustee since 2002 The Wharton School, University of
Pennsylvania (since July 1972); Director,
Lauder Institute of International Management
Studies (since July 2000); Co-Director,
Wharton Financial Institutions Center (since
July 2000). Formerly, Vice Dean and Director,
Wharton Undergraduate Division (July 1995 to
June 2000).
- ---------------------------------------------------------------------------------------------------
Graham E. Jones Senior Vice President, BGK Realty, Inc. 54
1/31/33 (commercial real estate) (since 1995);
Trustee since 2002 Trustee, 8 open-end mutual funds managed by
Weiss, Peck & Greer (since 1985) and Trustee
of 18 open-end mutual funds managed by Sun
Capital Advisers, Inc. (since 1998).
- ---------------------------------------------------------------------------------------------------
Rebecca W. Rimel President and Chief Executive Officer, The 54
4/10/51 Pew Charitable Trusts (charitable foundation)
Trustee since 2002 (1994 to present); Executive Vice President,
The Glenmede Trust Company (investment trust
and wealth management) (1983 to present).
- ---------------------------------------------------------------------------------------------------
Philip Saunders, Jr. Principal, Philip Saunders Associates 54
10/11/35 (economic and financial consulting) (since
Trustee since 2002 November 1988). Formerly, Director, Financial
Industry Consulting, Wolf & Company
(consulting) (1987-1988); President, John
Hancock Home Mortgage Corporation
(1984-1986); Senior Vice President of
Treasury and Financial Services, John Hancock
Mutual Life Insurance Company, Inc.
(1982-1986).
- ---------------------------------------------------------------------------------------------------
William N. Searcy Private investor (since October 2003); 54
9/03/46 Trustee of 18 open-end mutual funds managed
Trustee since 2002 by Sun Capital Advisers, Inc. (since October
1998). Formerly, Pension & Savings Trust
Officer, Sprint Corporation 3
(telecommunications) (November 1989 to
October 2003).
- ---------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
39
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
TRUSTEES AND OFFICERS OF THE TRUST
NAME, DATE OF BIRTH, NUMBER OF
POSITION WITH THE FUNDS IN THE
TRUST AND LENGTH OF BUSINESS EXPERIENCE AND DIRECTORSHIPS FUND COMPLEX
TIME SERVED 1,2 DURING THE PAST 5 YEARS OVERSEEN
- ---------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES
- ---------------------------------------------------------------------------------------------------
William N. Shiebler 4 Chief Executive Officer in the Americas for 137
2/06/42 Deutsche Asset Management ('DeAM') and a
Trustee since 2004 member of the DeAM Global Executive Committee
(since 2002); Vice Chairman of Putnam
Investments, Inc. (1999); Director and Senior
Managing Director of Putnam Investments, Inc.
and President, Chief Executive Officer, and
Director of Putnam Mutual Funds Inc.
(1990-1999).
- ---------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NAME, DATE OF BIRTH,
POSITION WITH THE
TRUST AND LENGTH OF BUSINESS EXPERIENCE AND DIRECTORSHIPS
TIME SERVED 1,2 DURING THE PAST 5 YEARS
- --------------------------------------------------------------------------------
OFFICERS
- --------------------------------------------------------------------------------
Julian F. Sluyters 5 Managing Director, Deutsche Asset Management
7/14/60 (since May 2004); President and Chief
President and Chief Executive Executive Officer of The Germany Fund, Inc.,
Officer since 2004 The New Germany Fund, Inc., The Central
Europe and Russia Fund, Inc., The Brazil
Fund, Inc., The Korea Fund, Inc., Scudder
Global High Income Fund, Inc. and Scudder New
Asia Fund, Inc. (since May 2004), Scudder
Global Commodities Stock Fund, Inc. (since
July 2004); President and Chief Executive
Officer, UBS Fund Services (2001-2003); Chief
Administrative Officer (1998-2001) and Senior
Vice President and Director of Mutual Fund
Operations (1991-1998) UBS Global Asset
Management.
- --------------------------------------------------------------------------------
Kenneth Murphy 6 Vice President, Deutsche Asset Management
10/13/63 (September 2000 to present). Formerly,
Vice President and Anti-Money Director, John Hancock Signature Services
Laundering Compliance Officer (1992-2000).
since 2002
- --------------------------------------------------------------------------------
Paul H. Schubert 5 Managing Director, Deutsche Asset Management
1/11/63 (since July 2004). Formerly, Executive
Chief Financial Officer Director, Head of Mutual Fund Services and
since 2004 Treasurer for UBS Family of Funds
(1998-2004); Vice President and Director of
Mutual Fund Finance at UBS Global Asset
Management (1994-1998).
- --------------------------------------------------------------------------------
Charles A. Rizzo 6 Managing Director, Deutsche Asset Management
8/05/57 (since April 2004). Formerly, Director,
Treasurer since 2002 Deutsche Asset Management (April 2000 to
March 2004); Vice President and Department
Head, BT Alex. Brown Incorporated (now
Deutsche Bank Securities Inc.) (1998-1999);
Senior Manager, Coopers & Lybrand L.L.P. (now
PricewaterhouseCoopers LLP) (1993-1998).
- --------------------------------------------------------------------------------
John Millette 6 Director, Deutsche Asset Management.
8/23/62
Secretary since 2003
- --------------------------------------------------------------------------------
Lisa Hertz 5 Assistant Vice President, Deutsche Asset
8/21/70 Management.
Assistant Secretary
since 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
40
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
TRUSTEES AND OFFICERS OF THE TRUST
- --------------------------------------------------------------------------------
NAME, DATE OF BIRTH,
POSITION WITH THE
TRUST AND LENGTH OF BUSINESS EXPERIENCE AND DIRECTORSHIPS
TIME SERVED 1,2 DURING THE PAST 5 YEARS
- --------------------------------------------------------------------------------
OFFICERS
- --------------------------------------------------------------------------------
Daniel O. Hirsch Managing Director, Deutsche Asset Management
3/27/54 (2002 to present). Formerly, Director,
Assistant Secretary Deutsche Asset Management (1999-2002),
since 2003 Principal, BT Alex. Brown Incorporated (now
Deutsche Bank Securities Inc.) (1998-1999);
Assistant General Counsel, United States
Securities and Exchange Commission
(1993-1998); Director, Deutsche Global Funds
Ltd. (2002-2004).
- --------------------------------------------------------------------------------
Caroline Pearson 6 Managing Director, Deutsche Asset Management.
4/01/62
Assistant Secretary
since 2002
- --------------------------------------------------------------------------------
Bruce A. Rosenblum Director, Deutsche Asset Management.
9/14/60
Vice President since 2003 and
Assistant Secretary
since 2002
- --------------------------------------------------------------------------------
Kevin M. Gay 6 Vice President, Deutsche Asset Management.
11/12/59
Assistant Treasurer
since 2004
- --------------------------------------------------------------------------------
Salvatore Schiavone 6 Director, Deutsche Asset Management.
11/03/65
Assistant Treasurer
since 2003
- --------------------------------------------------------------------------------
Kathleen Sullivan D'Eramo 6 Director, Deutsche Asset Management.
1/25/57
Assistant Treasurer since 2003
- --------------------------------------------------------------------------------
Philip Gallo 5 Managing Director, Deutsche Asset Management
8/02/62 (2003 to present). Formerly, Co-Head of
Chief Compliance Officer Goldman Sachs Asset Management Legal
since 2004 (1994-2003).
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1 Unless otherwise indicated, the mailing address of each Trustee and Officer
with respect to fund operations is One South Street, Baltimore, MD 21202.
2 Length of time served represents the date that each Trustee or Officer first
began serving in that position with Scudder Investments VIT Funds of which
this fund is a series.
3 A publicly held company with securities registered pursuant to Section 12 of
the Securities Exchange Act of 1934.
4 Mr. Shiebler is a Trustee who is an 'interested person' within the meaning of
Section 2(a)(19) of the 1940 Act. Mr. Shiebler is a Managing Director of
Deutsche Asset Management, the US asset management unit of Deutsche Bank AG
and its affiliates. Mr. Shiebler's business address is 280 Park Avenue, New
York, New York 10017.
5 Address: 345 Park Avenue, New York, New York 10154.
6 Address: Two International Place, Boston, Massachusetts 02110.
- --------------------------------------------------------------------------------
41
Scudder VIT Small Cap Index Fund
- --------------------------------------------------------------------------------
TAX INFORMATION (Unaudited)
DIVIDENDS RECEIVED DEDUCTION: Of the ordinary income (including short-term
capital gain) distributions made by the Scudder VIT Small Cap Index Fund during
the fiscal year ended December 31, 2004, 100% qualify for the dividend received
deduction available to corporate shareholders.
- --------------------------------------------------------------------------------
PROXY VOTING (Unaudited)
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, 2004 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.
- --------------------------------------------------------------------------------
FORM N-Q (Unaudited)
Following the Fund's fiscal first and third quarter-end, a complete portfolio
holdings listing is filed with the SEC on Form N-Q. The form will be available
on the SEC's Web site at www.sec.gov, and it also may be reviewed and copied at
the SEC Public Reference Room in Washington, D.C. Information on the operation
of the SEC's Public Reference Room may be obtained by calling (800) SEC-0330.
- --------------------------------------------------------------------------------
42
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
- --------------------------------------------------------------------------------
Portfolio changes should not be considered
recommendations for action by individual investors.
[LOGO OMITTED]
SCUDDER
INVESTMENTS
VIT4SA (2/28/05) MARS#35895
[LOGO OMITTED]
A Member of
DEUTSCHE ASSET MANAGEMENT
[GRAPHIC OMITTED] Printed on recycled paper
ITEM 2. CODE OF ETHICS.
As of the end of the period, December 31, 2004, Scudder VIT Small Cap Index Fund
has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies
to its Principal Executive Officer and Principal Financial Officer.
There have been no amendments to, or waivers from, a provision of the code of
ethics during the period covered by this report that would require disclosure
under Item 2.
A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Fund's Board of Directors/Trustees has determined that the Fund has at least
one "audit committee financial expert" serving on its audit committee: Mr. S.
Leland Dill. This audit committee member is "independent," meaning that he is
not an "interested person" of the Fund (as that term is defined in Section
2(a)(19) of the Investment Company Act of 1940) and he does not accept any
consulting, advisory, or other compensatory fee from the Fund (except in the
capacity as a Board or committee member).
An "audit committee financial expert" is not an "expert" for any purpose,
including for purposes of Section 11 of the Securities Act of 1933, as a result
of being designated as an "audit committee financial expert." Further, the
designation of a person as an "audit committee financial expert" does not mean
that the person has any greater duties, obligations, or liability than those
imposed on the person without the "audit committee financial expert"
designation. Similarly, the designation of a person as an "audit committee
financial expert" does not affect the duties, obligations, or liability of any
other member of the audit committee or board of directors.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
SCUDDER SMALL CAP INDEX FUND
FORM N-CSR DISCLOSURE RE: AUDIT FEES
The following table shows the amount of fees that Ernst & Young, LLP ("E&Y"),
the Fund's auditor, billed to the Fund during the Fund's last two fiscal years.
For engagements with E&Y entered into on or after May 6, 2003, the Audit
Committee approved in advance all audit services and non-audit services that E&Y
provided to the Fund.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
- --------------------------------------------------------------------------------------------------------------------
Fiscal Year All
Ended Audit Fees Billed Audit-Related Tax Fees Billed to Other Fees Billed
December 31, to Fund Fees Billed to Fund Fund to Fund
- --------------------------------------------------------------------------------------------------------------------
2004 $35,400 $0 $4,200 $0
- --------------------------------------------------------------------------------------------------------------------
2003 $32,950 $0 $1,817 $0
- --------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" were billed for professional services rendered for tax
compliance and tax return preparation.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND
AFFILIATED FUND SERVICE PROVIDERS
The following table shows the amount of fees billed by E&Y to Deutsche
Investment Management Americas, Inc. ("DeIM" or the "Adviser"), and any entity
controlling, controlled by or under common control with DeIM ("Control
Affiliate") that provides ongoing services to the Fund ("Affiliated Fund Service
Provider"), for engagements directly related to the Fund's operations and
financial reporting, during the Fund's last two fiscal years.
- ----------------------------------------------------------------------------------------------
Audit-Related All
Fees Billed to Tax Fees Billed to Other Fees Billed
Fiscal Year Adviser and Adviser and to Adviser and
Ended Affiliated Fund Affiliated Fund Affiliated Fund
December 31, Service Providers Service Providers Service Providers
- ----------------------------------------------------------------------------------------------
2004 $347,500 $0 $0
- ----------------------------------------------------------------------------------------------
2003 $112,900 $0 $0
- ----------------------------------------------------------------------------------------------
The "Audit-Related Fees" were billed for services in connection with the
assessment of internal controls and additional related procedures.
NON-AUDIT SERVICES
The following table shows the amount of fees that E&Y billed during the Fund's
last two fiscal years for non-audit services. For engagements entered into on or
after May 6, 2003, the Audit Committee pre-approved all non-audit services that
E&Y provided to the Adviser and any Affiliated Fund Service Provider that
related directly to the Fund's operations and financial reporting. The Audit
Committee requested and received information from E&Y about any non-audit
services that E&Y rendered during the Fund's last fiscal year to the Adviser and
any Affiliated Fund Service Provider. The Committee considered this information
in evaluating E&Y's independence.
- --------------------------------------------------------------------------------------------------------------------
Total Non-Audit Fees
billed to Adviser and
Affiliated Fund
Service Providers Total Non-Audit Fees
(engagements related billed to Adviser
directly to the and Affiliated Fund
Total operations and Service Providers
Non-Audit Fees financial reporting (all other
Fiscal Year Billed to Fund of the Fund) engagements) Total of (A), (B)
Ended December 31, (A) (B) (C) and (C)
- --------------------------------------------------------------------------------------------------------------------
2004 $4,200 $0 $331,601 $335,801
- --------------------------------------------------------------------------------------------------------------------
2003 $1,817 $0 $3,742,000 $3,743,817
- --------------------------------------------------------------------------------------------------------------------
All other engagement fees were billed for services in connection with risk
management and process improvement initiatives for DeIM and other related
entities that provide support for the operations of the fund.
***
E&Y recently advised the Fund's Audit Committee that various E&Y member firms
provided certain non-audit services to Deutsche Bank entities and affiliates
(collectively, the "DB entities") between 2003 and 2005 that raise issues under
the SEC auditor independence rules. The DB entities are within the "Investment
Company Complex" (as defined by SEC rules) and therefore covered by the SEC
auditor independence rules applicable to the Fund.
First, E&Y advised the Audit Committee that in connection with providing
permitted expatriate tax compliance services for DB entities during 2003 and
2004, member firms in China and Japan ("E&Y China" and "E&Y Japan,"
respectively) received funds from the DB entities that went into E&Y
"representative bank trust accounts" and were used to pay the foreign income
taxes of
the expatriates. E&Y has advised the Audit Committee that handling
those funds was in violation of Rule 2-01 of Regulation S-X. (Rule
2-01(c)(4)(viii) provides that an accountant's independence is impaired if the
accountant has custody of assets of the audit client.)
Second, E&Y advised the Audit Committee that in connection with providing
monthly payroll services to employees of certain DB entities from May 2003 to
February 2005, a member firm in Chile ("E&Y Chile") received funds from the DB
entities that went into an E&Y trust account and were used to pay the net
salaries and social security taxes of executives of the DB entities. E&Y has
advised the Audit Committee that handling those funds was in violation of Rule
2-01 of Regulation S-X.
Third, E&Y advised the Audit Committee that in connection with providing certain
services in assisting a DB entity with various regulatory reporting
requirements, a member firm in France ("E&Y France") entered into an engagement
with the DB entity that resulted in E&Y France staff functioning under the
direct responsibility and direction of a DB entity supervisor. E&Y advised the
Audit Committee that, although the services provided were "permitted services"
under Rule 2-01 of Regulation S-X, the structure of the engagement was in
violation of Rule 2-01 of Regulation S-X. (Rule 2-01(c)(4)(vi) provides that an
accountant's independence is impaired if the accountant acts as an employee of
an audit client.)
The Audit Committee was informed that E&Y China received approximately $1,500,
E&Y Japan received approximately $41,000, E&Y Chile received approximately
$12,000 and E&Y France received approximately $100,000 for the services they
provided to the DB entities. E&Y advised the Audit Committee that it conducted
an internal review of the situation and, in view of the fact that similar
expatriate tax compliance services were provided to a number of E&Y audit
clients unrelated to DB or the Fund, E&Y has advised the SEC and the PCAOB of
the independence issues arising from those services. E&Y advised the Audit
Committee that E&Y believes its independence as auditors for the Fund was not
impaired during the period the services were provided. In reaching this
conclusion, E&Y noted a number of factors, including that none of the E&Y
personnel who provided the non-audit services to the DB entities were involved
in the provision of audit services to the Fund, the E&Y professionals
responsible for the Fund's audits were not aware that these non-audit services
took place, and that the fees charged were not significant to E&Y overall or to
the fees charged to the Investment Company Complex. E&Y also noted that E&Y
China, E&Y Japan and E&Y Chile are no longer providing these services and that
the E&Y France engagement has been restructured.
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) Code of ethics, or any amendment thereto, that is the subject of
disclosure required by Item 2 is attached hereto.
(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(b) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
FORM N-CSR ITEM F
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: Scudder VIT Small Cap Index Fund
By: /S/ JULIAN SLUYTERS
-------------------
Julian Sluyters
Chief Executive Officer
Date: February 28, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
Registrant: Scudder VIT Small Cap Index Fund
By: /S/ JULIAN SLUYTERS
-------------------
Julian Sluyters
Chief Executive Officer
Date: February 28, 2005
By: /S/ PAUL SCHUBERT
-----------------
Paul Schubert
Chief Financial Officer
Date: February 28, 2005