Americans' Expectations of Investment Returns Hit Stellar Levels.

Business Editors

BOSTON--(BUSINESS WIRE)--June 26, 2000

Scudder Kemper Investments Survey Unearths Paradox: Americans

Point To Hype About the Markets But May Also Be Susceptible To It. 21.7% is Said To Be Reasonable Return To Expect, and People Think All

is Well as Long as Greenspan's There

A comprehensive new survey by Scudder Kemper Investments, "Investing in a Dot-Com World: Americans' Attitudes and Apprehensions," reveals that Americans' have adopted potentially unrealistic expectations of investment returns.

In addition, Americans express almost profound faith in Alan Greenspan and his ability to keep the economy strong.

Said Robert Froehlich, Global Investment Strategist at Scudder Kemper Investments, "On the one hand, Americans say they're aware of hype: nearly three-quarters (74%), according to our survey, say there's `too much media hype about people getting rich quick in the stock market,' and more than two-thirds (67%) say they believe the media have turned investing into a form of popular entertainment. On the other hand, Americans may themselves be victims of hype; their expectations of investment returns are inflated. This is an intriguing paradox."

    -- The average (mean) return on investments considered
       "reasonable" by Americans today is a whopping 21.7%.

    -- Younger Americans' expectations are particularly grand - 26.5%
       among people age 18 to 23, and 25.9% among those between 24
       and 35.

    -- Expectations for returns decrease with age. The breakdown among
       generations is as follows:
        -- GI/WWII (ages 68+) -       16.0%
        -- Swing (ages 55-67))-       18.6%
        -- Boomer (ages 36-54)-       20.2%
        -- Gen-X (ages 24-35)-        25.9%
        -- Millennial (ages 18-23)-   26.5%

Furthermore, something of a "cult of Alan Greenspan" is emerging:

-- A majority of investors who are aware of Alan Greenspan (52%)

believe that as long as he is head of the Federal Reserve, the

U.S. economy will remain strong.

"Americans clearly believe that Alan Greenspan is, in part, responsible for the nation's long-running economic expansion. This view must result, in part, from the media attention that the Federal Reserve Chairman receives. It is also possible that in an increasingly complex and fast-moving economy, people want to believe that there is someone at the helm who fully comprehends the big picture and is able to influence, for the better, the course of the new economy," added Dr. Froehlich.

The results also point to a vantage point among investors that the bull market isn't just for the young, "dot-com" generation.

-- Nearly three-quarters (73%) of investors disagree that the

opportunities in today's markets are mainly for younger people.

About Scudder Kemper Investments

Scudder Kemper Investments, Inc., the global investment management business of Zurich Financial Services Groups, is one of the largest and most experienced investment management organizations in the world, managing more than $290 billion in assets for institutional and corporate clients, retirement and pension plans, insurance companies, mutual fund investors, and individuals. Scudder Kemper Investments offers a full range of investment counsel and asset management capabilities, based on a combination of proprietary research and disciplined, long-term investment strategies.

Headquartered in Zurich, Switzerland, Zurich Financial Services Group is one of the global leaders in the financial services industry, providing its customers with products and solutions in the area of financial protection and asset accumulation. The Group has four core businesses: non-life and life insurance, reinsurance and asset management.

About the Investing in a Dot-Com World Survey

The public opinion data reported in the study entitled Investing in a Dot-Com World: Americans' Attitudes and Apprehensions are the result of a total of 2,900 telephone interviews conducted with adult Americans, 18 years and older, living in the continental United States. Interviewing was conducted from a central telephone facility during the period of April 18 through May 1, 2000 utilizing a random-digital-dial (RDD) sampling methodology.

National survey results are based on 1,300 telephone interviews conducted with a random and representative sample of adults, including an oversample of 300 "investors." Investors are defined as individuals indicating they currently have investments in stocks, mutual funds or money market funds, including IRAs, Keoghs or employer-sponsored retirement plans, like 401(k)s. In addition, a total of 1,600 interviews were conducted in a series of four random and representative statewide surveys of 400 adults each in California, Florida, Illinois and Texas.

The margin of error for results based on the national weighted sample of 1,300 is +/- 2.7 percentage points; for the investor sample of 963, +/- 3.2 percentage points; and for each statewide sample of 400, +/- 4.9 percentage points.

For more details on the findings of Investing in a Dot-Com World: Americans' Attitudes and Apprehensions, please visit investments.scudder.com or contact Laura Trumble at [phone], or Amy Schwabero at [phone]. A copy of the complete survey is available upon request.

For a complete press kit, visit investments.scudder.com.