Scudder Tax Free Money Fund
Scudder Limited Term Tax Free Fund
Scudder Medium Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder High Yield Tax Free Fund
Supplement to Statement of Additional Information dated March 1, 1998
The following paragraph replaces the last paragraph on page 49 in the section
entitled "Investment Adviser":
The investment management agreements between each of STFMF, STFT (on
behalf of SLTTFF and SMTTFF) and SMT (on behalf of SMMB and SHYTFF) and
Scudder were last approved by the Trustees on August 6, 1997. Because the
transaction between Scudder and Zurich resulted in the assignment of the
Funds' investment management agreements with Scudder, those agreements were
deemed to be automatically terminated at the consummation of the
transaction. In anticipation of the transaction, however, new investment
management agreements between the Funds and the Adviser were approved by
the Funds' Trustees. At the special meeting of the Funds' shareholders held
on October 24, 1997, the shareholders also approved proposed new investment
management agreements. The new investment management agreements (the
"Agreements") became effective as of December 31, 1997, and will be in
effect for an initial term ending on September 30, 1998. The Agreements
will continue in effect from year to year thereafter only if their
continuance is approved annually by the vote of a majority of those
Trustees who are not parties to such Agreements or interested persons of
the Adviser or a Trust, cast in person at a meeting called for the purpose
of voting on such approval, and either by a vote of the Funds' Trustees or
of a majority of the outstanding voting securities of each Fund. The
Agreements contain, in all material respects, the same terms as the
previous investment management agreements which they supersede. The
Agreements incorporate conforming changes which promote consistency among
all of the funds advised by the Adviser and which permit ease of
administration. The Agreements may be terminated at any time without
payment of penalty by either party on sixty days' written notice, and
automatically terminate in the event of their assignment.
April 17, 1998
