Scudder Institutional Fund, Inc.
Institutional Cash Portfolio
Institutional Government Portfolio
Supplement to Prospectus
Dated May 1, 1996
The Board of Directors has approved a new time at which the net asset value per
share for each of Institutional Cash Portfolio and Institutional Government
Portfolio is calculated. The Board also approved extended trading deadlines for
those Portfolios. Each Portfolio's net asset value will be determined as of, and
purchase, exchange and redemption orders will be accepted until, the close of
regular trading on the New York Stock Exchange (the "Exchange") (normally 4:00
eastern time) on each day during which the Exchange is open for trading.
The following reflects these changes and replaces, for these Portfolios only,
portions of the Portfolios' combined prospectus. Please note that all time
designations refer to eastern time and assume the close of regular trading at
4:00 p.m.
Distribution and Performance Information
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First Paragraph under Dividends and Capital Gains Distributions:
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.
Transaction Information
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Third paragraph under Purchasing Shares
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
Custodian's account 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.
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Fifth Paragraph under Redemption by Expedited Redemption Service:
Proceeds of Expedited Redemptions will be wired to the shareholder's bank
indicated in the Purchase Application. If an Expedited Redemption request is
received by the Transfer Agent by 4:00 p.m. on a day the Company and the
Custodian are open for business, the redemption will be executed at the net
asset value calculated at 4:00 p.m. and proceeds will normally start
transmission that same day if such redemption can be accomplished in time to
meet the Federal Reserve Wire System's schedule.
First Paragraph under Share Price as well as "Share Price" in the Summary on
Page 4:
Net asset value per share for each Portfolio is determined by Scudder Fund
Accounting Corporation 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.
September 3, 1996
