SCUDDER
August 1, 1995
Dear Scudder Investor,
The information on the reverse side shows the effective changes in the total
operating expenses for Scudder Massachusetts Limited Term Tax Free Fund.
Effective August 1, 1995, the Fund's expense limitation has been raised from
0.25% to 0.50%. This new limitation will remain in effect until at least
February 29, 1996.
Despite a modest increase in the expense limitation, we anticipate that Scudder
Massachusetts Limited Term Tax Free Fund will continue to offer an attractive
combination of high tax-free income and relative stability compared with similar
municipal bond funds.
If you have any questions about Scudder Massachusetts Limited Term Tax Free
Fund, please call Scudder Investor Relations at 1-800-225-2470. We will be glad
to help you.
Sincerely,
/s/David S. Lee
David S. Lee
President, Scudder Investor Services, Inc.
This letter is for explanatory purposes and is not part of the prospectus
supplement on the reverse side.
(over please)
<PAGE>
SCUDDER
Scudder Massachusetts Limited Term Tax Free Fund
Supplement to Prospectus
Dated March 1, 1995
How to compare a Scudder pure no-load(TM) fund
This information is designed to help you understand the various costs and
expenses of investing in Scudder Massachusetts Limited Term Tax Free Fund (the
"Fund"). By reviewing this table and those in other mutual funds' prospectuses,
you can compare the Fund's fees and expenses with those of other funds. With
Scudder's pure no-load(TM) funds, you pay no commissions to purchase or redeem
shares, or to exchange from one fund to another. As a result, all of your
investment goes to work for you.
1) Shareholder transaction expenses: Expenses charged directly to your
individual account in the Fund for various transactions.
Sales commissions to purchase shares (sales load) NONE
Commissions to reinvest dividends NONE
Redemption fees NONE*
Fees to exchange shares NONE
2) Annual Fund operating expenses: Expenses paid by the Fund before it
distributes its net investment income, expressed as a percentage of the
Fund's average daily net assets for the fiscal year ended October 31, 1994.
Investment management fee (after waiver) 0.00%**
12b-1 fees NONE
Other expenses (after reimbursement) 0.50%**
----
Total Fund operating expenses 0.50%**
====
Example
Based on the level of total Fund operating expenses listed above, the total
expenses relating to a $1,000 investment, assuming a 5% annual return and
redemption at the end of each period, are listed below. Investors do not pay
these expenses directly; they are paid by the Fund before it distributes its net
investment income to shareholders. (As noted above, the Fund has no redemption
fees of any kind.)
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$5 $16 $28 $63
See "Fund organization--Investment adviser" for further information about the
investment management fee. This example assumes reinvestment of all dividends
and distributions and that the percentage amounts listed under "Annual Fund
operating expenses" remain the same each year. This example should not be
considered a representation of past or future expenses or return. Actual Fund
expenses and return vary from year to year and may be higher or lower than those
shown.
* You may redeem by writing or calling the Fund or by Write-A-Check. If you
wish to receive your redemption proceeds via wire, there is a $5 wire
service fee. For additional information, please refer to "Transaction
information--Redeeming shares."
** Until February 29, 1996, the Adviser has agreed to reimburse Fund operating
expenses and waive its fee to the extent necessary so that the total
annualized expenses of the Fund do not exceed 0.50% of average daily net
assets. If the Adviser had not agreed to reimburse operating expenses and
waive its fee so that the total annualized expenses of the Fund did not
exceed 0% from February 15, 1994 (commencement of operations) to October
31, 1994, Fund expenses would have been: investment management fee 0.60%,
other expenses 0.60% and total operating expenses 1.20% for the fiscal year
ended October 31, 1994. To the extent that expenses fall below 0.50% during
the fiscal year, the Adviser reserves the right to recoup, during the
fiscal year incurred, amounts reimbursed or waived during the period, but
only to the extent that the Fund's expenses do not exceed 0.50%.
August 1, 1995 MIS41PS
