AARP Investment Program
from SCUDDER
SUPPLEMENT TO PROSPECTUS DATED
FEBRUARY 1, 1998
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Trusts AARP Mutual Funds
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AARP Cash Investment Funds AARP High Quality Money Fund
AARP Income Trust AARP High Quality Short Term Bond Fund
AARP GNMA and U.S. Treasury 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 Growth and Income Fund
AARP Small Company Stock Fund
AARP Managed Investment AARP Diversified Income with Growth Portfolio
Portfolios Trust AARP Diversified Growth Portfolio
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On December 22, 1997, Zurich Insurance Company ("Zurich") entered into an
agreement with B.A.T Industries p.l.c. ("B.A.T") pursuant to which the financial
services businesses of B.A.T will be combined with Zurich's businesses
(including Zurich's 70% interest in Scudder Kemper Investments, Inc., the Funds'
investment adviser ("Scudder Kemper")), to form a new global insurance and
financial services company known as Zurich Financial Services. After the
transaction is completed, by way of a dual holding company structure, current
Zurich Insurance Company shareholders will own approximately 57% of the new
organization, with the balance owned by B.A.T's current shareholders.
The transaction is expected to close in the third quarter of 1998. Upon
consummation of the transaction, each AARP Investment Program Fund's investment
management agreement with Scudder Kemper will be deemed to have been assigned
and, therefore, will terminate. The board of each Fund has approved new
investment management agreements with Scudder Kemper, which are substantially
identical to the current investment management agreements, except for the dates
of execution and termination. Each new investment management agreement is to
become effective upon the termination of the current investment management
agreements. The board of each Fund will seek shareholder approval of the new
investment management agreements through a proxy solicitation that is currently
scheduled to conclude in mid-December.
September 1, 1998
