Supplement to the currently Effective Statements of Additional Information:
<TABLE>
<S> <C>
AARP Balanced Stock and Bond Fund Scudder International Fund
AARP Bond Fund for Income Scudder International Growth and Income Fund
AARP Capital Growth Fund Scudder Large Company Growth Fund
AARP Global Growth Fund Scudder Large Company Value Fund
AARP GNMA and U.S. Treasury Fund Scudder Latin America Fund
AARP Growth and Income Fund Scudder Limited Term Tax Free Fund
AARP High Quality Money Fund Scudder Managed Municipal Bonds
AARP High Quality Short Term Bond Fund Scudder Massachusetts Limited Term Tax Free
AARP High Quality Tax Free Money Fund Fund
AARP Insured Tax Free General Bond Fund Scudder Massachusetts Tax Free Fund
AARP International Stock Fund Scudder Medium Term Tax Free Fund
AARP Premium Money Fund Scudder Micro Cap Fund
AARP Small Company Stock Fund Scudder Money Market Series: Institutional
AARP U.S. Stock Index Fund Shares
Scudder 21st Century Growth Fund Scudder Money Market Series: Managed
Scudder Balanced Fund Shares
Scudder California Tax Free Fund Scudder Money Market Series: Premium
Scudder Cash Investment Trust Shares
Scudder Corporate Bond Fund Scudder Money Market Series: Prime Reserve
Scudder Development Fund Scudder New York Tax Free Fund
Scudder Dividend & Growth Fund Scudder Ohio Tax Free Fund
Scudder Emerging Markets Growth Fund Scudder Pacific Opportunities Fund
Scudder Emerging Markets Income Fund Scudder S&P 500 Index Fund
Scudder Global Bond Fund Scudder Select 1000 Growth Fund
Scudder Global Fund Scudder Select 500 Fund
Scudder GNMA Fund Scudder Short Term Bond Fund
Scudder Gold Fund Scudder Small Company Value Fund
Scudder Greater Europe Growth Fund Scudder Tax Free Money Fund
Scudder Growth and Income Fund Scudder Tax Managed Growth Fund
Scudder Health Care Fund Scudder Tax Managed Small Company Fund
Scudder High Yield Bond Fund Scudder Technology Fund
Scudder High Yield Tax Free Fund Scudder U.S. Treasury Money Fund
Scudder Income Fund
Scudder International Bond Fund
</TABLE>
1
<PAGE>
The respective Board of each Fund listed above has approved the adoption of a
new administrative services agreement (an "Administrative Agreement"). Under
each Fund's Administrative Agreement, each share class of the Fund will pay a
fixed fee rate (the "Administrative Fee") to Scudder Kemper Investments, Inc.,
the Fund's investment adviser ("Scudder Kemper"). In return, Scudder Kemper will
provide or pay others to provide substantially all services that a fund normally
requires for its operations, such as transfer agency fees, shareholder servicing
fees, custodian fees, and fund accounting fees, but not including expenses such
as taxes, brokerage, interest, extraordinary expenses and fees and expenses of
Board members not affiliated with Scudder Kemper (including fees and expenses of
their independent counsel). Each fund would continue to pay the fees required by
its investment management agreement with Scudder Kemper. Each Administrative
Agreement will have an initial term of three years, subject to earlier
termination by a fund's Board. Such an administrative fee would enable investors
to determine with greater certainty the expense level that the fund will
experience, and, for the term of the administrative agreement, would transfer
substantially all of the risk of increased cost to Scudder Kemper. The date upon
which each fund's Administrative Agreement will be implemented is set forth
below, along with the administrative fee rate that will be in effect under each
Administrative Agreement. With the exception of those listed as October 1, 2000,
the dates listed below are approximate. Certain fund reorganizations have been
proposed to shareholders. The administrative fee will become effective on the
date which these reorganizations are effected (see proposed dates below).
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
Fund name Proposed Date of
Administrative Fee Implementation
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
AARP Balanced Stock and Bond Fund 0.300% October 1, 2000
- -------------------------------------------------------------------------------------------------------
AARP Bond Fund for Income 0.300% October 1, 2000
- -------------------------------------------------------------------------------------------------------
AARP Capital Growth Fund 0.300% October 1, 2000
- -------------------------------------------------------------------------------------------------------
AARP Global Growth Fund 0.375% October 1, 2000
- -------------------------------------------------------------------------------------------------------
AARP GNMA and U.S. Treasury Fund 0.300% July 17, 2000
- -------------------------------------------------------------------------------------------------------
AARP Growth and Income Fund 0.300% October 1, 2000
- -------------------------------------------------------------------------------------------------------
AARP High Quality Money Fund 0.400% October 1, 2000
- -------------------------------------------------------------------------------------------------------
AARP High Quality Short Term Bond Fund 0.300% October 1, 2000
- -------------------------------------------------------------------------------------------------------
AARP High Quality Tax Free Money Fund 0.150% October 1, 2000
- -------------------------------------------------------------------------------------------------------
AARP Insured Tax Free General Bond Fund 0.150% October 1, 2000
- -------------------------------------------------------------------------------------------------------
AARP International Stock Fund 0.375% October 1, 2000
- -------------------------------------------------------------------------------------------------------
AARP Premium Money Fund 0.400% October 1, 2000
- -------------------------------------------------------------------------------------------------------
AARP Small Company Stock Fund 0.450% July 17, 2000
- -------------------------------------------------------------------------------------------------------
AARP U.S. Stock Index Fund 0.250% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder 21st Century Growth Fund 0.450% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Balanced Fund 0.300% August 28, 2000
- -------------------------------------------------------------------------------------------------------
Scudder California Tax Free Fund 0.150% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Cash Investment Trust 0.400% September 11, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Corporate Bond Fund 0.300% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Development Fund 0.450% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Dividend & Growth Fund 0.300% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Emerging Markets Growth Fund 0.650% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Emerging Markets Income Fund 0.650% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Global Bond Fund 0.375% September 25, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Global Fund 0.375% September 11, 2000
- -------------------------------------------------------------------------------------------------------
Scudder GNMA Fund 0.300% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Gold Fund 0.650% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Greater Europe Growth Fund 0.375% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Growth and Income Fund 0.300% August 14, 2000
- -------------------------------------------------------------------------------------------------------
2
<PAGE>
- -------------------------------------------------------------------------------------------------------
Scudder Health Care Fund 0.350% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder High Yield Bond Fund 0.300% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder High Yield Tax Free Fund 0.150% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Income Fund 0.300% July 31, 2000
- -------------------------------------------------------------------------------------------------------
Scudder International Bond Fund 0.375% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder International Fund 0.375% August 28, 2000
- -------------------------------------------------------------------------------------------------------
Scudder International Growth and Income Fund 0.375% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Large Company Growth Fund 0.300% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Large Company Value Fund 0.300% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Latin America Fund 0.650% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Limited Term Tax Free Fund 0.150% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Managed Municipal Bonds 0.150% July 31, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Massachusetts Limited Term Tax Free Fund 0.150% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Massachusetts Tax Free Fund 0.150% July 31, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Medium Term Tax Free Fund 0.150% July 31, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Micro Cap Fund 0.450% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Money Market Series: Institutional Shares 0.100% August 14, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Money Market Series: Managed Shares 0.250% August 14, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Money Market Series: Premium Shares 0.250% August 14, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Money Market Series: Prime Reserve 0.400% August 14, 2000
- -------------------------------------------------------------------------------------------------------
Scudder New York Tax Free Fund 0.150% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Ohio Tax Free Fund 0.150% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Pacific Opportunities Fund 0.650% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder S&P 500 Index Fund 0.250% September 11, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Select 1000 Growth Fund 0.250% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Select 500 Fund 0.250% August 28, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Short Term Bond Fund 0.300% August 14, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Small Company Value Fund 0.450% August 28, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Tax Free Money Fund 0.150% September 11, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Tax Managed Growth Fund 0.250% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Tax Managed Small Company Fund 0.450% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder Technology Fund 0.350% October 1, 2000
- -------------------------------------------------------------------------------------------------------
Scudder U.S. Treasury Money Fund 0.400% October 1, 2000
- -------------------------------------------------------------------------------------------------------
</TABLE>
May 1, 2000
3
