Scudder Fund, Inc.
Managed Cash Fund
Managed Federal Securities Fund
Managed Government Securities Fund
Supplement to the Statement of Additional Information dated May 1, 1996
The following text replaces for Managed Cash Fund, Managed Federal Securities
Fund, and Managed Government Securities Fund, portions of the Funds' combined
Statement of Additional Information. Please note that all time designations
refer to eastern time and assume the close of regular trading on the New York
Stock Exchange at 4:00 p.m.
Purchasing Shares
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Paragraph under Money Market Funds
Orders for shares of a Fund will become effective when an investor's
bank wire order or check is converted into federal funds (monies credited to the
account of State Street Bank and Trust Company (the "Custodian") with its
registered Federal Reserve Bank). If payment is transmitted by the Federal
Reserve Wire System, the order will become effective upon receipt. Orders will
be executed at 4:00 p.m. on the same day if a bank wire or check is converted to
federal funds by 4:00 p.m. or a federal funds wire is received by 4:00 p.m. In
addition, if investors known to the Company notify the Company by 4:00 p.m. that
they intend to wire federal funds to purchase shares of a Fund on any business
day and if monies are received in time to be invested, orders will be executed
at the net asset value per share determined at 4:00 p.m. the same day. Wire
transmissions may, however, be subject to delays of several hours, in which
event the effectiveness of the order will be delayed. Payments by a bank wire
other than the Federal Reserve Wire System may take longer to be converted into
federal funds. When payment for shares is by check drawn on any member of the
Federal Reserve System, federal funds normally become available to the Company
on the business day after the check is deposited.
Dividends
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Paragraph under Money Market Funds
The Company declares dividends on the outstanding shares of each Fund
from each Fund's net investment income at the close of each business day to
shareholders of record at 4:00 p.m. on the day of declaration. Realized capital
gains and losses (other than long-term capital gains) may be taken into account
in determining the daily distribution. Shares purchased will begin earning
dividends on the day the purchase order is executed and shares redeemed will
earn dividends through the previous day. Net investment income for a Saturday,
Sunday or holiday will be declared as a dividend on the previous business day to
shareholders of record at 4:00 p.m. on that day.
Net Asset Value
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First paragraph
Net asset value per share for each Fund is determined by Scudder Fund
Accounting Corporation, a subsidiary of the Adviser, on each day the Exchange is
open for trading. The net asset value per share of each Fund is determined at
4:00 p.m. The net asset value per share of each Fund is computed by dividing the
value of the total assets of the Fund, less all liabilities, by the total number
of outstanding shares of the Fund. The Exchange is closed on Saturdays, Sundays,
and on New Year's Day, Presidents' Day (the third Monday in February), Good
Friday, Memorial Day (the last Monday in May), Independence Day, Labor Day (the
first Monday in September), Thanksgiving Day and Christmas Day (collectively,
the "Holidays"). When any Holiday falls on a Saturday, the Exchange is closed
the preceding Friday, and when any Holiday falls on a Sunday, the Exchange is
closed the following Monday. Although the Company intends to declare dividends
with respect to each of its Money Market Funds on all other days, including
Martin Luther King, Jr. Day (the third Monday in January), Columbus Day (the
second Monday in October) and Veterans' Day, no redemptions will be made on
these three bank holidays nor on any of the Holidays.
September 3, 1996
