AARP INVESTMENT PROGRAM FROM SCUDDER
AARP Cash Investment Funds:
AARP HIGH QUALITY MONEY FUND
AARP Income Trust:
AARP GNMA and U.S. TREASURY FUND
AARP HIGH QUALITY 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 STOCK FUND
AARP SMALL COMPANY STOCK FUND
AARP Managed Investment Portfolios Trust:
AARP DIVERSIFIED INCOME PORTFOLIO
AARP DIVERSIFIED GROWTH PORTFOLIO
Supplement to the Statement of Additional Information dated February 1, 1997
As Revised May 23, 1997
The following section is added after the third paragraph under the heading "The
Funds' Investment Objectives and Policies - AARP Managed Investment Portfolios":
Master-feeder fund structure
At the special meeting of shareholders, a majority of the shareholders
of each Fund approved a proposal which gives each Trust's Board of
Trustees the discretion to retain the current distribution arrangement
for the Fund while investing in a master fund in a master/feeder fund
structure as described below.
A master/feeder fund structure is one in which a fund (a "feeder
fund"), instead of investing directly in a portfolio of securities,
invests most or all of its investment assets in a separate registered
investment company (the "master fund") with substantially the same
investment objective and policies as the feeder fund. Such a structure
permits the pooling of assets of two or more feeder funds, preserving
separate identities or distribution channels at the feeder fund level.
Based on the premise that certain of the expenses of operating an
investment portfolio are relatively fixed, a larger investment
portfolio may eventually achieve a lower ratio of operating expenses to
average net assets. An existing investment company is able to convert
to a feeder fund by selling all of its investments, which involves
brokerage and other transaction costs and realization of a taxable gain
or loss, or by contributing its assets to the master fund and avoiding
transaction costs and, if proper procedures are followed, the
realization of taxable gain or loss.
October 22, 1997
