AARP Investment Program
from Scudder
SUPPLEMENT TO PROSPECTUS DATED
FEBRUARY 1, 1997
Trusts AARP Mutual Funds
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AARP Cash Investment Funds AARP High Quality Money Fund
AARP Income Trust AARP GNMA and U.S. Treasury Fund
AARP High Quality Bond Fund
AARP Bond Fund for Income
AARP Tax Free Income Trust AARP High Quality Tax Free Money Fund AARP
Insured Tax Free General Bond Fund
AARP Growth Trust AARP Balanced Stock and Bond Fund
AARP Growth and Income Fund
AARP U.S. Stock Index Fund
AARP Global Growth Fund
AARP Capital Growth Fund
AARP International Stock Fund
AARP Small Company Stock Fund
AARP Managed Investment AARP Diversified Income Portfolio
Portfolios Trust AARP Diversified Growth Portfolio
Scudder, Stevens & Clark, Inc. ("Scudder") the investment manager for the
above-named Funds, has entered into an agreement with The Zurich Group
("Zurich"), an international insurance and financial services organization,
pursuant to which Scudder will form a new global investment organization by
combining with Zurich's subsidiary, Zurich Kemper Investments, Inc., and change
its name to Scudder Kemper Investments, Inc. After the transaction is completed,
Zurich will own approximately 70% of the new organization with the balance owned
by the new organization's officers and employees.
Consummation of the transaction is subject to a number of contingencies,
including regulatory approvals. Because the transaction would constitute an
assignment of the Funds' investment management agreements with Scudder under the
Investment Company Act of 1940, and, therefore, a termination of such
agreements, it is anticipated that Scudder will seek approval of new agreements
from the Funds' shareholders prior to consummation of the transaction. The
transaction is expected to close in the fourth quarter of 1997.
July 18, 1997
