SUCDDER
INVESTMENTS (SM)
[LOGO]
Supplement to the currently effective Prospectuses:
Scudder Money Market Series:
Premium Shares Institutional Shares
Prime Reserve Shares Managed Shares
The Board of the Fund has voted to recommend that shareholders of the Fund
approve an Agreement and Plan of Reorganization (the "Plan of Reorganization")
providing for the conversion of Scudder Fund, Inc. from a Maryland corporation
into a Massachusetts business trust. The key purpose of the reorganization is to
enhance efficiency in the administration of the Fund. In the event the
reorganization is approved by shareholders, the Fund will continue to have the
same name, investment objective, policies and limitations as it had before the
conversion. Shareholders of the Fund will be asked to approve the Plan of
Reorganization for the Fund at a Special Meeting of Shareholders to be held on
or about July 12, 2000.
The Board of the Fund has approved the adoption of a new administrative services
agreement (an "Administrative Agreement"). Under its Administrative Agreement,
each share class of the Fund will pay a fixed fee rate (the "Administrative
Fee") to Scudder Kemper Investments, Inc., the Fund's investment adviser
("Scudder Kemper"). In return, Scudder Kemper has agreed to assume
responsibility for payment of substantially all of the administrative expenses
that each share class of the Fund normally incurs, such as transfer agency fees,
shareholder servicing fees, custodian fees, and fund accounting fees, but not
including such expenses as taxes, brokerage, interest, extraordinary expenses
and fees and expenses of Board members not affiliated with Scudder Kemper
(including fees and expenses of their independent counsel). The Fund would
continue to pay the fees required by its investment management agreement with
Scudder Kemper. Fund management believes that combining these expenses under a
single Administrative Fee should enable investors to determine with greater
certainty the expenses that each share class of the Fund may incur. The
Administrative Fee is expected to be implemented on or about August 14, 2000, at
which time the following information will restate the information for each share
class of the Fund found in the Fee Table and Expense Example in the applicable
prospectus:
<TABLE>
<CAPTION>
Fee Table Premium Shares Prime Reserve Shares Institutional Shares Managed Shares
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shareholder Fees (paid directly from None None None None
your investment)
- ------------------------------------------------------------------------------------------------------------------------------------
Annual Operating Expenses (deducted from fund assets)
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Management Fee 0.25% 0.25% 0.25% 0.25%
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Distribution (12b-1) Fee None None None None
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Administrative Fee 0.25% 0.40% 0.10% 0.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Other Expenses* 0.00% 0.00% 0.00% 0.00%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Annual Operating Expenses 0.50% 0.65% 0.35% 0.50%
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Expense Reimbursement 0.15% 0.15% 0.20% 0.20%
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Net Annual Operating Expenses** 0.35% 0.50% 0.15% 0.30%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Includes such expenses as the cost of taxes, brokerage, interest,
extraordinary expenses and fees and expenses of Board members not
affiliated with Scudder Kemper (including fees and expenses of their
independent counsel). Together these costs totaled less than 0.005% for
each class.
** By contract, Scudder Kemper has reduced its management fee for each class
by 0.15% through 9/30/2000. Additionally, Scudder Kemper has contractually
agreed to reduce its administrative fee for Institutional Shares and
Managed Shares by 0.05% through 9/30/2000. From time to time, Scudder
Kemper may voluntarily waive an additional portion of its fees.
<TABLE>
<CAPTION>
Expense Example Premium Shares Prime Reserve Shares Institutional Shares Managed Shares
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
One Year $36 $51 $15 $31
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Three Years $145 $193 $92 $140
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Five Years $265 $347 $176 $260
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Ten Years $614 $796 $423 $609
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</TABLE>
February 8, 2000
