Scudder Institutional Fund, Inc.
Institutional Cash Portfolio
Institutional Government Portfolio
Supplement to the Statement of Additional Information dated May 1, 1996
The following text replaces for Institutional Cash Portfolio and Institutional
Government Portfolio, portions of the Portfolios' combined Statement of
Additional Information. Please note that all time designations refer to eastern
time and assume the close of regular trading on the New York Stock Exchange at
4:00 p.m.
Purchasing Shares
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Second paragraph
Orders for shares of a Portfolio will become effective when an
investor's bank wire order or check is converted into federal funds (monies
credited to the account of State Street Bank and Trust Company (the "Custodian")
with its registered Federal Reserve Bank). If payment is transmitted by the
Federal Reserve Wire System, the order will become effective upon receipt.
Orders will be executed at 4:00 p.m. on the same day if a bank wire or check is
converted to federal funds by 4:00 p.m. or a federal funds wire is received by
4:00 p.m. In addition, if investors notify the Company by 4:00 p.m. that they
intend to wire federal funds to purchase shares of a Portfolio on any business
day and if monies are received in time to be invested, orders will be executed
at the net asset value per share determined at 4:00 p.m. the same day. Wire
transmissions may, however, be subject to delays of several hours, in which
event the effectiveness of the order may be delayed. Payments transmitted by a
bank wire other than the Federal Reserve Wire System may take longer to be
converted into federal funds.
Dividends
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First paragraph
The Company declares dividends on the outstanding shares of each
Portfolio from each Portfolio's net investment income at the close of each
business day to shareholders of record at 4:00 p.m. on the day of declaration.
Realized capital gains and losses (other than long-term capital gains) may be
taken into account in determining the daily distribution. Shares purchased will
begin earning dividends on the day the purchase order is executed and shares
redeemed will earn dividends through the previous day. Net investment income for
a Saturday, Sunday or holiday will be declared as a dividend on the previous
business day to shareholders of record at 4:00 p.m. on that day.
Net Asset Value
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First paragraph
Net asset value per share for each Portfolio is determined by Scudder
Fund Accounting Corporation, a subsidiary of the Adviser, on each day the
Exchange is open for trading. The net asset value per share of each Portfolio is
determined at 4:00 p.m. The net asset value per share of each Portfolio is
computed by dividing the value of the total assets of the Portfolio, less all
liabilities, by the total number of outstanding shares of the Portfolio. The
Exchange is closed on Saturdays, Sundays, and on New Year's Day, Presidents' Day
(the third Monday in February), Good Friday, Memorial Day (the last Monday in
May), Independence Day, Labor Day (the first Monday in September), Thanksgiving
Day and Christmas Day (collectively, the "Holidays"). When any Holiday falls on
a Saturday, the Exchange is closed the preceding Friday, and when any Holiday
falls on a Sunday, the Exchange is closed the following Monday. Although the
Company intends to declare dividends with respect to each Portfolio on all other
days, including Martin Luther King, Jr. Day (the third Monday in January),
Columbus Day (the second Monday in October) and Veterans' Day, no redemptions
will be made on these three bank holidays nor on any of the Holidays.
September 3, 1996
