ZURICH MONEY FUNDS
Zurich Money Funds
Zurich Money Market Fund
Zurich Government Money Fund
Zurich Tax-Free Money Fund
ZURICH YIELDWISE FUNDS
Zurich YieldWise Money Fund
SUPPLEMENT TO CURRENTLY EFFECTIVE STATEMENTS OF
ADDITIONAL INFORMATION OF EACH OF THE LISTED FUNDS
(EACH A "FUND"):
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On September 7, 1998, Zurich Insurance Company ("Zurich"), the majority owner of
Scudder Kemper Investments, Inc. (the "Adviser"), entered into an agreement with
B.A.T Industries p.l.c. ("B.A.T"), pursuant to which the financial services
businesses of B.A.T were combined with Zurich's businesses to form a new global
insurance and financial services company known as Zurich Financial Services.
Upon consummation of the transaction, each Fund's investment management
agreement with the Adviser was deemed to have been assigned and, therefore,
terminated. The Board of Trustees of each Fund and the shareholders of each Fund
have approved a new investment management agreement with the Adviser, which is
substantially identical to the former investment management agreement, except
for the dates of execution and termination.
At special meetings of shareholders of each Fund held on December 17, 1998 (the
"Special Meetings"), the shareholders confirmed that as a matter of fundamental
policy, each Fund is classified as a diversified series of an open-end
investment company under the Investment Company Act of 1940 (the "1940 Act"),
but the shareholders voted to eliminate any additional fundamental
diversification policies.
At each Fund's Special Meeting, the shareholders approved the reclassification
of each Fund's investment objective(s) and policies as non-fundamental, with the
exception of those policies required to be fundamental by the 1940 Act (see
below). An objective or policy which is non-fundamental may be changed or
eliminated by the Board of Trustees without a vote of the shareholders.
Each Fund's fundamental policies have been amended by a vote of shareholders at
each Fund's Special Meeting. Following is a list of each Fund's amended and
restated fundamental policies. As a matter of fundamental policy, each Fund may
not:
(1) borrow money, except as permitted under the Investment Company Act of 1940,
as amended, and as interpreted or modified by regulatory authority having
jurisdiction, from time to time;
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(2) issue senior securities, except as permitted under the Investment Company
Act of 1940, as amended, and as interpreted or modified by regulatory authority
having jurisdiction, from time to time;
(3) concentrate its investments in a particular industry, as that term is used
in the Investment Company Act of 1940, as amended, and as interpreted or
modified by regulatory authority having jurisdiction, from time to time;
(4) engage in the business of underwriting securities issued by others, except
to the extent that a Fund may be deemed to be an underwriter in connection with
the disposition of portfolio securities;
(5) purchase or sell real estate, which term does not include securities of
companies which deal in real estate or mortgages or investments secured by real
estate or interests therein, except that the Fund reserves freedom of action to
hold and to sell real estate acquired as a result of the Fund's ownership of
securities;
(6) purchase physical commodities or contracts relating to physical commodities;
(7) make loans except as permitted under the Investment Company Act of 1940, as
amended, and as interpreted or modified by regulatory authority having
jurisdiction, from time to time.
The following policies are non-fundamental, and may be changed or eliminated for
each Fund by its Board of Trustees without a vote of its shareholders:
Zurich Money Market Fund may not:
(1) Purchase common stocks, preferred stocks, warrants, other equity securities,
state bonds, municipal bonds or industrial revenue bonds (except through the
purchase of debt obligations in accordance with its investment objective and
policies);
(2) Purchase securities of any issuer (other than obligations of, or guaranteed
by, the United States Government, its agencies or instrumentalities) if, as a
result more than 5% of the value of the Fund's assets would be invested in
securities of that issuer;
(3) Purchase more than 10% of any class of securities of any issuer. All debt
securities and all preferred stocks are each considered as one class;
(4) Invest more than 5% of the Fund's total assets in securities of issuers
which with their predecessors have a record of less than three years continuous
operation, and equity securities of issuers which are not readily marketable;
(5) Enter into repurchase agreements if, as a result thereof, more than 10% of
the Fund's total assets valued at the time of the transaction would be subject
to repurchase agreements maturing in more than seven days;
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(6) Make short sale of securities, or purchase any securities on margin, except
to obtain such short-term credits as may be necessary for the clearance of
transactions;
(7) Write, purchase or sell puts, calls or combinations thereof;
(8) Purchase or retain the securities of any issuer if any of the officers,
trustees or directors of the Trust or its investment adviser owns beneficially
more than 1/2 of 1% of the securities of such issuer and together own more than
5% of the securities of such issuer;
(9) Invest more than 5% of the Fund's total assets in securities restricted as
to disposition under the federal securities laws (except commercial paper issued
under Section 4(2) of the Securities Act of 1933);
(10) Invest for the purpose of exercising control or management of another
issuer;
(11) Invest in interests in oil, gas or other mineral exploration or development
programs, although it may invest in the securities of issuers which invest in or
sponsor such programs;
(12) Purchase securities of other investment companies, except in connection
with a merger, consolidation, reorganization or acquisition of assets.
Zurich Government Money Fund may not:
(1) Purchase securities or make investments other than in accordance with its
investment objective and policies;
(2) Enter into repurchase agreements if, as a result thereof, more than 10% of
the Fund's total assets valued at the time of the transaction would be subject
to repurchase agreements maturing in more than seven days;
(3) Make short sales of securities, or purchase any securities on margin, except
to obtain such short-term credits as may be necessary for the clearance of
transactions.
Zurich Tax-Free Money Fund may not:
(1) Purchase securities of any issuer (other than obligations of, or guaranteed
by, the U.S. Government, its agencies or instrumentalities) if as a result more
than 5% of the value of the Fund's assets would be invested in the securities of
such issuer. For purposes of limitation, the Fund will regard the entity which
has the primary responsibility for the payment of interest and principal as the
issuer;
(2) Invest more than 5% of the Fund's total assets in industrial development
bonds sponsored by companies which with their predecessors have less than three
years' continuous operation;
(3) Make short sale of securities or purchase securities on margin, except to
obtain such short-term credits as may be necessary for the clearance of
transactions;
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(4) Write, purchase or sell puts, calls or combinations thereof, although the
Fund may purchase Municipal Securities subject to Standby Commitments in
accordance with its investment objective and policies;
(5) Purchase or retain the securities of any issuer if any of the officers,
trustees or directors of the Trust or its investment adviser owns beneficially
more than 1/2 of 1% of the securities of such issuer and together own more than
5% of the securities of such issuer;
(6) Invest more than 5% of the Fund's total assets in securities restricted as
to disposition under the federal securities laws (except commercial paper issued
under Section 4(2) of the Securities Act of 1933);
(7) Invest for the purpose of exercising control or management of another
issuer;
(8) Invest in interests in oil, gas or other mineral exploration or development
programs, although it may invest in Municipal Securities of issuers which invest
in or sponsor such programs;
(9) Purchase securities of other investment companies, except in connection with
a merger, consolidation, reorganization or acquisition of assets.
Zurich YieldWise Money Fund may not:
(1) Purchase more than 10% of any class of voting securities of any issuer;
(2) Make short sales of securities, or purchase any securities on margin except
to obtain such short-term credits as may be necessary for the clearance of
transactions;
(3) Invest in real estate limited partnerships.
March 2, 1999
