[AARP Investment Program
from Scudder]
SUPPLEMENT TO PROSPECTUS DATED
FEBRUARY 1, 1998
Trusts AARP Mutual Funds
AARP Cash Investment Funds AARP High Quality Money Fund
AARP Income Trust AARP GNMA and U.S. Treasury Fund
AARP High Quality Short Term Bond Fund
AARP Bond Fund for Income
AARP Tax Free Income Trust AARP High Quality Tax Free Money Fund
AARP Insured Tax Free General Bond Fund
AARP Growth Trust AARP Balanced Stock and Bond Fund
AARP Growth and Income Fund
AARP U.S. Stock Index Fund
AARP Global Growth Fund
AARP Capital Growth Fund
AARP International Growth and Income Fund
AARP Small Company Stock Fund
AARP Managed Investment AARP Diversified Income with Growth Portfolio
Portfolios Trust AARP Diversified Growth Portfolio
Overstated Expense Ratio
On page 13 of the Prospectus regarding AARP High Quality Short Term Bond
Fund, the figure in the 1997 column of the "Ratio of Operating Expenses
Before Expense Reductions to Average Net Assets" should be 0.93% instead of
5.84%, as reported.
Additional Portfolio Manager
For the AARP Small Company Stock Fund on page 59 of the Prospectus in the
section entitled "Who at Scudder manages my investment?" the following
Portfolio Manager should be added:
Calvin S. Young, Portfolio Manager, joined the Fund Manager in 1990 as a
quantitative analyst, and has nine years of investment management
experience. Mr. Young is responsible for small company and security
research as well as portfolio management.
Planning for the Year 2000
Like other mutual funds and financial and business organizations worldwide,
the Funds could be adversely affected if computer systems on which the Funds
rely, which primarily include those used by the Fund Manager, its affiliates
or other service providers, are unable to correctly process date-related
information on and after January 1, 2000. This risk is commonly called the
Year 2000 Issue. Failure to successfully address the Year 2000 Issue could
result in interruptions to and other material adverse effects on the Funds'
business and operations. The Fund Manager has commenced a review of the Year
2000 Issue as it may affect the Funds and is taking steps it believes are
reasonably designed to address the Year 2000 Issue, although there can be no
assurances that these steps will be sufficient. In addition, there can be no
assurances that the Year 2000 Issue will not have an adverse effect on the
companies whose securities are held by the Funds or on global markets or
economies generally.
May 22, 1998
