The Scudder mutual funds still exist, but the Scudder name is gone. Through a chain of acquisitions between 1997 and 2008, Scudder, Stevens and Clark was absorbed into Deutsche Bank’s global asset management arm and rebranded as DWS. If you’re wondering what happened to Scudder Funds, the short version is this: your shares are now DWS funds, serviced by DWS Group, a publicly traded firm majority-owned by Deutsche Bank, and every trace of the Scudder name was stripped from filings and marketing by 2008.
The Acquisition Path From Scudder to DWS
Three corporate events moved the funds out of Scudder’s hands.
In late 1997, Zurich Financial Services bought Scudder and merged it with the Kemper Funds it had acquired the year before, creating Zurich Scudder Investments.1U.S. Securities and Exchange Commission. Form N-14 Registration Statement for Scudder Money Funds
On April 5, 2002, Deutsche Bank acquired that asset management business from Zurich, and the legacy Scudder funds moved into Deutsche Bank’s global asset management division.1U.S. Securities and Exchange Commission. Form N-14 Registration Statement for Scudder Money Funds
The rename came in stages. On February 6, 2006, the Scudder fund names were changed to DWS funds, and the parent unit became DWS Scudder.2U.S. Securities and Exchange Commission. SAI Supplement – DWS Scudder Fund Renaming By 2008, the U.S. division rebranded again as DWS Investments, and the Scudder name disappeared for good.3U.S. Securities and Exchange Commission. Form N-14 DWS International Fund Inc
Do the Old Scudder Funds Still Exist
Most of them, yes. Legacy Scudder funds generally kept their investment objectives through each transition and continue under DWS names. The Scudder Growth and Income Fund became the DWS Growth and Income Fund.2U.S. Securities and Exchange Commission. SAI Supplement – DWS Scudder Fund Renaming The Scudder S&P 500 Index Fund became the DWS Equity 500 Index Fund, still tracking the same benchmark. The Scudder Emerging Markets Fixed Income Fund kept its mandate as the DWS Emerging Markets Fixed Income Fund. The lineup still covers international equity, global bond, high-income, tax-free municipal, and Latin America strategies.
Fund mergers that occurred during the transition were structured as tax-free reorganizations. Shareholders received new shares with the same cost basis as the old ones, so no taxable event was triggered by the rebranding itself.1U.S. Securities and Exchange Commission. Form N-14 Registration Statement for Scudder Money Funds
How to Access a Legacy Scudder Account
All account service now runs through DWS. To register for online access on the DWS website, you’ll need your Social Security number, DWS account number, and a new password. Once you’re in, statements and tax forms live under “Statements & History.”4DWS. Frequently Asked Questions
DWS Shareholder Services can be reached at (800) 728-3337, Monday through Friday, 7:00 a.m. to 6:00 p.m. Central Time, with automated help around the clock. International callers use (816) 435-7177.5DWS. Contact Us
You can buy, sell, or exchange shares through the site or by phone. DWS issues Form 1099-DIV and Form 1099-B each year, downloadable from the secure portal.6DWS. Tax Information
Cost Basis on Shares Bought Before 2012
This is the sharp edge for anyone who bought Scudder shares in the 1990s or earlier. DWS treats shares purchased before January 1, 2012 as “noncovered.” The company will calculate cost basis on those shares as a courtesy using the average cost method, but the figure is reported on your 1099-B as uncovered and is not sent to the IRS. You are responsible for verifying it and reporting it on your tax return.4DWS. Frequently Asked Questions
If you never elected a specific cost basis method, DWS defaults to average cost for all DWS fund shares. You can pick a different method at the time of a redemption or for future transactions by contacting shareholder services. For shares that went through a reorganization during the Scudder-to-DWS transition, cost basis carried over dollar for dollar.1U.S. Securities and Exchange Commission. Form N-14 Registration Statement for Scudder Money Funds
If records are missing, pull every available statement from the DWS portal first, then call shareholder services for anything the portal can’t produce. Sorting this out before you sell is far easier than reconstructing it at tax time.
The $20 Annual Fee and How to Avoid It
DWS charges a $20 annual maintenance fee on fund accounts with a balance below $10,000, assessed each September. The fee applies whether the balance dropped from market losses or redemptions.7DWS. Reverse Your Account Maintenance Charge
Enrolling in electronic delivery of fund documents exempts you from the charge even if the account is below the threshold.8DWS. DWS Money Market Fund Application You can switch to e-delivery through the online portal or by calling shareholder services. For a small or dormant account, twenty dollars a year adds up, and eliminating the deduction takes a few minutes.
Finding a Lost Scudder Account
If you or a family member lost track of Scudder shares, the account may have been turned over to a state unclaimed property program through escheatment. Financial institutions are required to transfer dormant accounts to the state after a period of inactivity that varies by state, commonly three to five years.
Start at MissingMoney.com, the free search tool endorsed by the National Association of Unclaimed Property Administrators, which searches multiple states at once. If a match appears, you file a claim with the state that holds the property.9Investor.gov. Investor Bulletin: The Escheatment Process
One catch worth knowing before you get your hopes up. When investment assets are recovered from escheatment, states generally return only the cash value of the account on the date it was turned over. Dividends, interest, or market gains that would have accrued afterward are not paid out. For a Scudder account escheated years ago, that gap between what you receive and what the shares would be worth today can be substantial.9Investor.gov. Investor Bulletin: The Escheatment Process
Inheriting Scudder or DWS Shares
The transfer path depends on how the account was set up. Accounts with a Transfer on Death designation are the cleanest. Each beneficiary completes a DWS Transfer on Death Affidavit (Form 40A) and submits it with a certified copy of the account owner’s death certificate and a state tax waiver if the deceased’s state requires one.10DWS Service Company. Transfer on Death Affidavit Form 40A Any outstanding physical share certificates must be surrendered with the paperwork. A beneficiary who wants to keep the shares rather than redeem them submits a new account application along with the affidavit.
For accounts without a TOD designation, and for transfers involving trusts or estates, DWS requires a Medallion Signature Guarantee on the transfer forms. That is a specific stamp from a bank or financial institution verifying your identity, and a regular notary seal will not be accepted. Most banks provide the guarantee free to their own account holders. Non-customers may face fees up to $100 or be turned away.11DWS. Instructions for Change of Account Ownership
When a legal representative such as an executor or successor trustee signs for the deceased, that representative obtains the Medallion Signature Guarantee, and a separate death certificate for the deceased owner is not required in that scenario. For beneficiaries designated under a per stirpes arrangement, additional paperwork applies; call shareholder services at (800) 728-3337 for specifics before you submit anything.10DWS Service Company. Transfer on Death Affidavit Form 40A