AARP Investment Program
from Scudder
July 22, 1996
Dear AARP Investment Program Shareholder,
In addition to the proxy statement and the proxy card(s) enclosed, I've
also provided you with some important information on the AARP Mutual Funds. This
information is provided to you on the reverse side of this letter and is a
supplement to the 1996 Prospectus. Please keep it in your files with your
Prospectus.
We've provided updated financial data on the AARP Mutual Funds for the
period ended March 31, 1996. The information provided includes the Funds' net
asset values, distributions paid and total returns. This information was
recently reported in the Mid-Year Report to Shareholders. The September 30, 1996
Annual Report to Shareholders will provide you with more current information on
the Funds.
You will find enclosed a proxy card for each AARP account registered in
your name. I'd like to explain why it's important that you complete and return
the proxy card(s) as soon as possible.
Unlike most routine operational matters, certain decisions regarding the
Funds require a shareholder vote, in accordance with the Funds' Declaration of
Trusts and applicable laws. And as with political elections, every vote counts.
We urge you to act promptly so that we can avoid sending you follow-up
reminders, which would result in additional expenses to the Funds. Please fill
out the proxy card(s) today, and return it in the enclosed postage prepaid
envelope.
If you have any questions about the prospectus supplement information or
the proxy statement, please feel free to call one of our knowledgeable AARP
Mutual Fund Representatives toll-free at 1-800-253-2277. They are available to
help you Monday through Friday, from 8:00 a.m. to 8:00 p.m. eastern time.
Sincerely,
/s/Cuyler W. Findlay
Cuyler W. Findlay
Chairman, AARP Investment Program from Scudder
This letter is for explanatory purposes and is not part of the prospectus
supplement.
<PAGE>
FINANCIAL HIGHLIGHTS
The following table supplements the expense and financial information found on
pages 2 through 9 in the Funds' prospectus. In this table you will find a
variety of information about the income and the expenses of each AARP Fund for
the stated period. You will also find the following: (1) the net gain or loss on
the investments, (2) the distributions, if any, of income and gain, and (3) the
change in net asset value per share from the beginning to the end of the stated
period.
For a copy of the Mid-Year Report to Shareholders, please contact an AARP Mutual
Fund Representative at 1-800-253-2277.
<TABLE>
<CAPTION>
For the Net Asset Net Realized Distributions Distributions
Six Months Ended Value at Net & Unrealized Total from from Net from Net
March 31,1996 Beginning Investment Investment Investment Investment Realized
(Unaudited) of Period Income Gain (Loss) Operations Income Gains
----------- --------- ------ ----------- ---------- ------ -----
<S> <C> <C> <C> <C> <C> <C>
AARP High Quality Money
Fund $1.000 $ .023 -- $ .023 $(.023) --
AARP High Quality Tax
Free Money Fund $1.000 $ .014 -- $ .014 $(.014) --
AARP GNMA and U.S.
Treasury Fund $15.19 $ .51 $(.13) $ .38 $ (.51) --
AARP High Quality Bond
Fund $16.01 $ .47 $(.09) $ .38 $ (.47) --
AARP Insured Tax Free General
Bond Fund $17.74 $ .43 $ .13 $ .56 $ (.43) --
AARP Balanced Stock and
Bond Fund $16.40 $ .30 $ .99 $ 1.29 $ (.32) $(.21)
AARP Growth and Income
Fund $38.36 $ .52 $ 4.52 $ 5.04 $ (.54) $(.84)
AARP Global Growth
Fund (d) $15.00 $.02(a) $ .25 $ .27 -- --
AARP Capital Growth
Fund $38.36 $ .18 $ 3.32 $ 3.50 $ (.39) $(.51)
(a) Reflects a per share reimbursement of expenses during the period by the Fund Manager. See last column.
(b) Not Annualized.
(c) Annualized.
(d) Commencement of Operations February 1, 1996.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Ratio of Ratio of Net
Net Asset Operating Investment Per Share
Value at Net Assets Expenses to Income to Portfolio Average Reimbursement
Total End of Total Return End of Period Average Net Average Net Turnover Commission of Expenses
Distributions Period % (b) ($ millions) Assets % (c) Assets % (c) Rate % (c) Rate Paid (a):
------------- ------ ----- ------------ ------------ ----------------------- --------- ----
<C> <C> <C> <C> <C> <C> <C> <C> <C>
$(.023) $1.000 2.30 381 .988 4.49 -- --
$(.014) $1.000 1.42 115 .89 2.82 -- --
$(.51) $15.06 2.49 5,121 .64 6.66 56.28 --
$(.47) $15.92 2.35 529 .95 5.78 199.17 --
$(.43) $17.87 3.15 1,786 .67 4.75 41.37 --
$(.53) $17.16 7.94 319 1.01 3.66 40.57 $ .0551 --
$(1.38) $42.02 13.34 3,669 .70 2.66 30.45 $ .0499 --
-- $15.27 1.80 28 1.75 (a) 2.06 -- $ .0172 $ .07
$(.90) $40.96 9.27 762 .91 .93 75.90 $ .0617 --
</TABLE>
