AARP Investment Program from Scudder
Supplement to Statement of Additional Information
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 Portfolios Trust AARP Diversified Income with Growth Portfolio
AARP Diversified Growth Portfolio
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Zurich Insurance Company ("Zurich"), which is the majority owner of each Fund's
investment manager, Scudder Kemper Investments, Inc. ("Scudder Kemper"), has
combined its businesses with the financial services businesses of B.A.T
Industries p.l.c. ("B.A.T"). The resulting company, Zurich Financial Services
("Zurich Financial Services"), has become Zurich's parent company. As a result
of the Zurich-B.A.T transaction, the former shareholders of B.A.T indirectly own
a 43% interest in Zurich through a new holding company, Allied Zurich p.l.c.
This change in ownership of Zurich may be deemed to have caused a "change in
control" of Scudder Kemper, even though Scudder Kemper's operations will not
change as a result. The Investment Company Act of 1940, which regulates
investment companies such as your Fund, requires that fund shareholders approve
a new investment management agreement whenever there is a change in control of a
fund's investment manager (even in the most technical sense). Although this
transaction will have virtually no effect on the operations of Scudder Kemper or
the Funds, each Fund's shareholders approved a new investment management
agreement for the Fund to assure that there is no interruption in the services
Scudder Kemper provides to the Fund. A special meeting of shareholders (the
"special meeting") of each Fund was held on December 15, 1998, at which time the
shareholders approved the new investment management agreements. Each new
investment management agreement (each an "Investment Management Agreement" and,
collectively, the "Investment Management Agreements") is effective as of
September 7, 1998 and will be in effect for an initial term ending on the same
date as would the corresponding previous investment management agreement. The
shareholders of each Fund also approved a new Member Services Agreement
effective as of September 7, 1998 and will be in effect for an initial term
ending on the same date as would the corresponding previous member services
agreement. In addition, the shareholders of AARP U.S. Stock Index Fund approved
a new Subadvisory Agreement with Bankers Trust effective as of September 7, 1998
and will be in effect for an initial term ending August 31, 1999.
Each Fund's Investment Management Agreement, Member Services Agreement and AARP
U.S. Stock Index Fund's Subadvisory Agreement are the same in all material
respects as the corresponding previous corresponding agreements.
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Each Fund's fundamental lending policy has been amended by a vote of
shareholders at the special meetings. As a matter of fundamental policy, each
Fund may not:
o make loans except as permitted under the Investment Company Act of 1940,
as amended, and as interpreted or modified by regulatory authority having
jurisdiction, from time to time.
December 28, 1998
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