[LOGO - AARP Investment Program
from SCUDDER]
Supplement to the Prospectus dated February 1, 2000:
<TABLE>
<S> <C>
AARP Balanced Stock and Bond Fund AARP High Quality Short Term Bond Fund
AARP Bond Fund for Income AARP High Quality Tax Free Money Fund
AARP Diversified Growth Portfolio AARP Insured Tax Free General Bond Fund
AARP Diversified Income with Growth Portfolio AARP International Stock Fund
AARP Global Growth Fund AARP Premium Money Fund
AARP Growth and Income Fund AARP U.S. Stock Index Fund
AARP High Quality Money Fund
</TABLE>
On July 11, 2000, the shareholders of each of the above-mentioned Funds
(identified in the table below under the heading "Acquired Fund") approved an
Agreement and Plan of Reorganization (the "Plan") between each Fund and the
corresponding Acquiring Fund identified in the chart below.
The Plan applicable to each Fund provides for the transfer of all or
substantially all of the assets of the Fund to the corresponding Acquiring Fund
and the assumption of all of the liabilities of the Fund by the Acquiring Fund
in exchange for AARP Class shares of the corresponding Acquiring Fund. Shares of
the corresponding Acquiring Fund thereby received would then be distributed to
the shareholders of the Fund in complete liquidation of the Fund (the
transactions contemplated by the Plans are referred to as the
"Reorganizations").
The Reorganizations are currently expected to become effective on or about the
applicable Reorganization Date identified in the chart below.
<TABLE>
<S> <C> <C>
Acquired Fund Acquiring Fund Reorganization Date
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AARP Balanced Stock and Bond Fund Scudder Balanced Fund August 28, 2000
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AARP Bond Fund for Income Scudder Income Fund July 31, 2000
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AARP Diversified Growth Portfolio Scudder Pathway Series: Growth Portfolio September 25, 2000
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AARP Diversified Income with Growth Portfolio Scudder Pathway Series: Conservative September 25, 2000
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AARP Global Growth Fund Scudder Global Fund September 11, 2000
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AARP Growth and Income Fund Scudder Growth and Income Fund August 14, 2000
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AARP High Quality Money Fund Scudder Cash Investment Trust September 11, 2000
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AARP High Quality Short Term Bond Fund Scudder Short Term Bond Fund August 14, 2000
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AARP High Quality Tax Free Money Fund Scudder Tax Free Money Fund September 11, 2000
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AARP Insured Tax Free General Bond Fund Scudder Managed Municipal Bonds July 31, 2000
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AARP International Stock Fund Scudder International Fund August 14, 2000
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AARP Premium Money Fund Scudder Money Market Series August 14, 2000
- Prime Reserve AARP Class
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AARP U.S. Stock Index Fund Scudder S&P 500 Index Fund September 11, 2000
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</TABLE>
AARP Capital Growth Fund
AARP GNMA and U.S. Treasury Fund
AARP Small Company Stock Fund
On or about July 17, 2000, AARP GNMA and U.S. Treasury Fund will be renamed
Scudder GNMA Fund. In addition, on or about July 17, 2000, each of AARP Capital
Growth Fund and AARP Small Company Stock Fund will be reorganized into separate
newly-formed series of Investment Trust, to be called Scudder Capital Growth
Fund and Scudder Small Company Stock Fund, respectively. Shares of these Funds
will be offered in a new prospectus dated July 17, 2000 and will not be
available through the funds' original prospectus dated February 1, 2000. Please
call 1-800-253-2277 for a copy of this new prospectus.
July 13, 2000
