Supplement to Prospectuses
Prospectuses dated May 1, 1996
Scudder Balanced Fund
Scudder High Yield Tax Free Fund
Scudder Income Fund
Scudder Limited Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder Medium Term Tax Free Fund
Scudder Short Term Bond Fund
Scudder Zero Coupon 2000 Fund
As Revised August 1, 1996
Scudder Tax Free Money Fund
As Revised August 13, 1996
Scudder Growth and Income Fund
Prospectuses dated August 1, 1996
Scudder California Tax Free Fund
Scudder California Tax Free Money Fund
Scudder GNMA Fund
Scudder International Fund
* Scudder Massachusetts Limited Term Tax Free Fund
* Scudder Massachusetts Tax Free Fund
* Scudder New York Tax Free Fund
* Scudder New York Tax Free Money Fund
* Scudder Ohio Tax Free Fund
* Scudder Pennsylvania Tax Free Fund
Prospectuses dated February 1, 1996
Scudder Capital Growth Fund
Scudder Value Fund
Prospectuses dated November 1, 1995
Scudder Development Fund
Scudder Gold Fund
Scudder International Bond Fund
Scudder U. S. Treasury Money Fund
* Scudder Cash Investment Trust
Scudder Global Fund
Prospectuses dated March 1, 1996
Scudder Emerging Markets Income Fund
Scudder Emerging Markets Growth Fund
Scudder Global Discovery Fund
Scudder Greater Europe Growth Fund
Scudder Latin America Fund
Scudder Pacific Opportunities Fund
Scudder Quality Growth Fund
As Revised March 6, 1996
Scudder Global Bond Fund
Prospectus dated June 28, 1996
Scudder High Yield Bond Fund
Prospectus dated October 6, 1995
Scudder Small Company Value Fund
The Board of Trustees/Directors of the Funds listed above have voted to
change the minimum shareholder account size, effective January 1, 1997. On
that date, the new account minimums will be in effect, and all references to
initial purchases and minimum account size will be modified, as described
below, and will replace the section entitled "Minimum balances" under
Transaction Information in these Funds' prospectuses.
Minimum balances
Shareholders should maintain a share balance worth at least $2,500, which
amount may be changed by the Board of Trustees/Directors. Scudder retirement
plans and certain other accounts have similar or lower minimum balance
requirements. The initial investment and minimum account balance for
fiduciary accounts such as IRAs will increase from $500 to $1,000 per fund
account, while the subsequent minimum investment will remain at $50. A
shareholder may open a regular account with a minimum of $1,000, if an
investment program of at least $100 per month is established.
Shareholders with non-fiduciary accounts who maintain an account balance of
less than $2,500 in the Fund without establishing a regular investment
program may be assessed an annual $10.00 per fund charge with the fee to be
paid to the Fund. The $10.00 charge will not apply to shareholders with a
combined household account balance (same surname, same address) in any of the
Scudder Funds of $25,000 or more. The Fund reserves the right, following 60
days' written notice to shareholders, to redeem all shares in accounts below
$250, where a reduction in value has occurred due to a redemption or exchange
out of the account. The shareholder may restore the share balance to $250 or
more during the 60-day notice period and must maintain it at no lower than
that minimum to avoid an involuntary redemption. The Fund will mail the
proceeds of the redeemed account to the shareholder. Reductions in value that
result solely from market activity will not trigger an involuntary
redemption. Retirement accounts and certain other accounts will not be
assessed the $10.00 charge or be subject to automatic liquidation. Please
refer to "Exchanges and Redemptions - Other information" in the Fund's
Statement of Additional Information.
* At Special Shareholder Meetings, shareholders of these Funds will be asked to
amend each Fund's governing documents to clarify the authority of the Boards
of Trustees to change the minimum shareholder account size. Effective January
1, 1997, all references to initial purchases and minimum account size will be
modified, as described above, and will replace the section entitled "Minimum
balances", under Transaction Information in these Funds' prospectuses.
September 25, 1996 Mega-96
SFD609132
SU001096
<PAGE>
September 25, 1996
Dear Scudder Fund Shareholder,
Scudder recently undertook a review of average account sizes and determined
that administrative and recordkeeping costs for smaller accounts are
contributing to higher fund expenses for all shareholders. As a result, we plan
to institute higher account minimums and a new sub-minimum account fee effective
January 1, 1997. Our purpose in writing to you is to outline these changes and
give you sufficient time to meet the new minimum should you be affected.
Effective January 1, 1997, the initial investment and the minimum account
balance for regular accounts will increase from $1,000 to $2,500. The subsequent
minimum investment will remain at $100. The initial investment and minimum
account balance for fiduciary accounts such as IRAs will increase from $500 to
$1,000 per fund account, and the subsequent minimum investment will remain at
$50.
Beginning next year, we also will be instituting a sub-minimum account fee,
which will be returned to the funds to offset the higher administrative and
recordkeeping expenses associated with small accounts. Regular accounts under
$2,500 that do not have an automatic investment plan in place will be assessed
an annual $10 per fund account charge. The sub-minimum fee will not apply to
IRAs and other fiduciary accounts. We will contact those shareholders who are
affected by the increase prior to assessing any sub-minimum account fees.
If your account balance currently falls below the new minimum, there are a
number of ways you can avoid paying the sub-minimum account fee.
o Take advantage of Scudder's Automatic Investment Plan (AIP). If your
account meets the current minimum -- $1,000 for a regular account and
$500 for an IRA -- we will waive the fee if a regular investment
program such as Scudder's Automatic Investment Plan (AIP) is
established. The monthly contribution to the AIP should be at least
$100 a month for a regular account and $50 a month for an IRA.
o Consider consolidating smaller accounts. Our representatives are
available to help you choose appropriate funds and complete any
transactions.
o Increase your account balance to meet the new minimum. You may simply
decide to increase your account balance by check at this time.
The account policy changes are detailed in the prospectus supplement on the
reverse side, which we encourage you to read carefully. Please contact a Scudder
Investor Relations representative, toll-free, at 1-888-815-1840 if you have any
questions or would like help choosing a course of action.
Sincerely,
/s/David S. Lee
David S. Lee
President, Scudder Investor Services, Inc.
This letter is for explanatory purposes and is not part of the prospectus
supplement on the reverse side.
(over, please)
