Supplement to currently effective Statement of Additional
Information for each of the listed funds:
Scudder Balanced Fund
Scudder California Tax Free Fund
Scudder California Tax Free Money Fund
Scudder Cash Investment Trust
Scudder Development Fund
Scudder Emerging Markets Growth Fund
Scudder Emerging Markets Income Fund
Scudder Global Bond Fund
Scudder Global Discovery Fund
Scudder Global Fund
Scudder GNMA Fund
Scudder Gold Fund
Scudder Government Money Market Series
Scudder Greater Europe Growth Fund
Scudder Growth and Income Fund
Scudder High Yield Bond Fund
Scudder High Yield Tax Free Fund
Scudder Income Fund
Scudder International Bond Fund
Scudder International Fund
Scudder International Growth and Income Fund
Scudder Large Company Growth Fund
Scudder Latin America Fund
Scudder Limited Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder Massachusetts Limited Term Tax Free Fund
Scudder Massachusetts Tax Free Fund
Scudder Medium Term Tax Free Fund
Scudder Money Market Series
Scudder New York Tax Free Fund
Scudder New York Tax Free Money Fund
Scudder Ohio Tax Free Fund
Scudder Pacific Opportunities Fund
Scudder Pennsylvania Tax Free Fund
Scudder Short Term Bond Fund
Scudder Tax Free Money Fund
Scudder Tax Free Money Market Series
Scudder U.S. Treasury Money Fund
Scudder Zero Coupon 2000 Fund
The Funds' investment adviser, Scudder, Stevens & Clark, Inc. ("Scudder"), and
Zurich Insurance Company ("Zurich"), an international insurance and financial
services organization, have formed a new global investment organization by
combining Scudder's business with that of Zurich's subsidiary, Zurich Kemper
Investments, Inc. ("Zurich Kemper"), and Scudder has changed its name to Scudder
Kemper Investments, Inc. ("Scudder Kemper" or the "Adviser"). As a result of the
transaction, Zurich owns approximately 70% of Scudder Kemper, with the balance
owned by Scudder Kemper's officers and employees. Scudder Kemper now manages in
excess of $200 billion in assets.
Following the transaction, the Scudder Family of Funds will continue to be pure
no load. The Scudder Family of Funds consists of those Funds or classes of Funds
advised by Scudder Kemper which are offered without commissions to purchase or
redeem shares or to exchange from one Fund to another.
The transaction between Scudder and Zurich resulted in the termination of each
Fund's investment management agreement with Scudder. However, new investment
management agreements between each Fund and Scudder Kemper were approved by each
Fund's Board of Directors or Trustees. A special meeting of shareholders (the
"Special Meeting") of each Fund was held in October 1997, at which time the
shareholders also approved the new investment management agreements. The new
investment management agreements (each an "Investment Management Agreement" and,
collectively, the "Investment Management Agreements") are each effective as of
December 31, 1997 and each will be in effect for an initial term ending on the
same date as would the corresponding previous investment management agreement.
Each Fund's Investment Management Agreement is the same in all material respects
as the corresponding previous investment management agreement, except that
Scudder Kemper is the new investment adviser to each Fund.
Master/feeder Structure
Each Fund's Board of Trustees or Directors has the discretion to retain the
current distribution arrangement for a Fund while investing in a master fund in
a master/feeder fund structure. A master/feeder fund structure is one in which a
fund (a "feeder fund"), instead of investing directly in a portfolio of
securities, invests most or all of its investment assets in a separate
registered investment company (the "master fund") with substantially the same
investment objective and policies as the feeder fund. Such a structure permits
the pooling of assets of two or more feeder funds, preserving separate
identities or distribution channels at the feeder fund level. Based on the
premise
<PAGE>
that certain of the expenses of operating an investment portfolio are relatively
fixed, a larger investment portfolio may eventually achieve a lower ratio of
operating expenses to average net assets. An existing investment company is able
to convert to a feeder fund by selling all of its investments, which involves
brokerage and other transaction costs and realization of a taxable gain or loss,
or by contributing its assets to the master fund and avoiding transaction costs
and, if proper procedures are followed, the realization of taxable gain or loss.
Brokerage Commissions
The following sentence below amends disclosure for each Fund:
The Adviser is authorized when placing portfolio transactions for the Fund
to pay a brokerage commission in excess of that which another broker might
have charged for executing the same transaction on account of execution
services and the receipt of research, market or statistical analysis.
Each Fund's fundamental policies have been amended by a vote of shareholders at
each Fund's respective Special Meeting. Following is a list of each Fund's
amended and restated fundamental policies. As a matter of fundamental policy,
each Fund will not:
o borrow money, 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;
o issue senior securities, 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;
o For all Funds except Scudder Gold Fund: concentrate its investments in a
particular industry, as that term is used in the Investment Company Act of
1940, as amended, and as interpreted or modified by regulatory authority
having jurisdiction, from time to time (except that Scudder Cash
Investment Trust and Scudder New York Tax Free Money Fund each reserves
the freedom of action to concentrate its investments in instruments issued
by domestic banks and except that Scudder Pathway Series may concentrate
in an underlying Fund. However, each underlying Scudder Fund in which each
Pathway Portfolio will invest may concentrate its investments in a
particular industry);
o For Scudder Gold Fund: concentrate its investments in a particular
industry, as that term is used in the Investment Company Act of 1940, as
amended, and as interpreted or modified by regulatory authority having
jurisdiction, from time to time, except that the Fund may concentrate in
securities issued by wholly owned subsidiaries of Scudder Mutual Funds,
Inc. and securities of companies that are primarily engaged in the
exploration, mining, fabrication, processing or distribution of gold and
other precious metals and in gold, silver, platinum and palladium bullion
and coins;
o For all Funds: engage in the business of underwriting securities issued by
others, except to the extent that the Fund (or Portfolio, in the case of
Scudder Pathway Series) may be deemed to be an underwriter in connection
with the disposition of portfolio securities;
o purchase or sell real estate, which term does not include securities of
companies which deal in real estate or mortgages or investments secured by
real estate or interests therein, except that the Fund (or Portfolio, in
the case of Scudder Pathway Series) reserves freedom of action to hold and
to sell real estate acquired as a result of the Fund's (or Portfolio's, in
the case of Scudder Pathway Series) ownership of securities;
o For all Funds except Scudder Gold Fund: purchase physical commodities or
contracts relating to physical commodities;
o For Scudder Gold Fund: purchase or sell physical commodities or contracts
relating to physical commodities, except for contracts for the future
delivery of gold, silver, platinum and palladium and gold, silver,
platinum and palladium bullion and coins;
2
<PAGE>
o For all Funds: make loans to other persons, except (i) loans of portfolio
securities, and (ii) to the extent that entry into repurchase agreements
and the purchase of debt instruments or interests in indebtedness in
accordance with the Fund's (or Portfolio's, in the case of Scudder Pathway
Series) investment objective and policies may be deemed to be loans.
In addition, the following Funds also include the following fundamental
policies.
o For Scudder California Tax Free Fund and Scudder California Tax Free Money
Fund: each will have at least 80% of its net assets invested in California
municipal securities during periods of normal market conditions.
o For Scudder Government Money Market Series, Scudder Money Market Series
and Scudder Tax Free Money Market Series: each may not invest an amount
equal to 10% or more of the current value of such Fund's total assets in
investments that are not readily marketable, including securities
restricted as to disposition under the Securities Act of 1933, repurchase
agreements having maturities of more than seven days, and, in the case of
Scudder Money Market Series, fixed time deposits subject to withdrawal
penalties having maturities of more than seven calendar days.
o For Scudder High Yield Tax Free Fund, Scudder Managed Municipal Bonds,
Scudder Medium Term Tax Free Fund and Scudder Limited Term Tax Free Fund:
each will have at least 80% of its net assets invested in municipal
securities during periods of normal market conditions.
o For Scudder Massachusetts Limited Term Tax Free Fund and Scudder
Massachusetts Tax Free Fund: each will have at least 80% of its net assets
invested in municipal securities of issuers located in Massachusetts and
other qualifying issuers (including Puerto Rico, the U.S. Virgin Islands
and Guam) during periods of normal market conditions.
o For Scudder New York Tax Free Fund and Scudder New York Tax Free Money
Fund: each will have at least 80% of its net assets invested in New York
municipal securities during periods of normal market conditions.
o For Scudder Ohio Tax Free Fund: will have at least 80% of its net assets
invested in Ohio municipal securities during periods of normal market
conditions.
o For Scudder Pennsylvania Tax Free Fund: will have at least 80% of its net
assets invested in Pennsylvania municipal securities during periods of
normal market conditions.
o For Scudder Tax Free Money Fund: will have at least 80% of its net assets
invested in short-term municipal securities during periods of normal
market conditions.
o For Scudder Tax Free Money Market Series: under ordinary market
conditions, the Fund will maintain at least 80% of the value of its total
assets in obligations that are exempt from federal income taxes and are
not subject to the alternative minimum tax.
Each Fund's non-fundamental policies have been amended by each Fund's respective
Board of Directors or Trustees as follows:
o For Scudder California Tax Free Fund, Scudder California Tax Free Money
Fund, Scudder Cash Investment Trust, Scudder Government Money Market
Series, Scudder High Yield Tax Free Fund, Scudder Limited Term Tax Free
Fund, Scudder Managed Municipal Bonds, Scudder Massachusetts Limited Term
Tax Free Fund, Scudder Massachusetts Tax Free Fund, Scudder Medium Term
Tax Free Fund, Scudder Money Market Series, Scudder New York Tax Free
Fund, Scudder New York Tax Free Money Fund, Scudder Ohio Tax Free Fund,
Scudder Pennsylvania Tax Free Fund, Scudder Tax Free Money Fund, Scudder
Tax Free Money Market Series and Scudder U.S. Treasury Money Fund: the
Fund does not currently intend to borrow money in an amount greater than
5% of its total assets, except for temporary or emergency purposes.
3
<PAGE>
o For all other Funds: the Fund does not currently intend to borrow money in
an amount greater than 5% of its total assets, except (i) for temporary or
emergency purposes and (ii) by engaging in reverse repurchase agreements,
dollar rolls, or other investments or transactions described in the Fund's
registration statement which may be deemed to be borrowings.
o For Scudder Development Fund, Scudder Emerging Markets Growth Fund,
Scudder Global Discovery Fund, Scudder Global Fund, Scudder Greater Europe
Growth Fund, Scudder International Fund, Scudder International Growth and
Income Fund, Scudder Large Company Growth Fund, Scudder Large Company
Value Fund, Scudder Latin America Fund, Scudder Pacific Opportunities
Fund, Scudder Small Company Value Fund, Scudder Value Fund, Scudder
Balanced Fund, Scudder Growth and Income Fund: the Fund currently does not
intend to enter into either of reverse repurchase agreements or dollar
rolls in an amount greater than 5% of its total assets;
o For all Funds (except Scudder Cash Investment Trust, Scudder U.S. Treasury
Money Fund, Scudder Money Market Series, Scudder Government Money Market
Series, Scudder California Tax Free Money Fund, Scudder New York Tax Free
Money Fund, Scudder Tax Free Money Fund, Scudder Tax Free Money Market
Series): the Fund does not currently intend to purchase securities on
margin or make short sales, except (i) short sales against the box, (ii)
in connection with arbitrage transactions, (iii) for margin deposits in
connection with futures contracts, options or other permitted investments,
(iv) that transactions in futures contracts and options shall not be
deemed to constitute selling securities short, and (v) that the Fund may
obtain such short-term credits as may be necessary for the clearance of
securities transactions;
o For all Funds (except Scudder Cash Investment Trust, Scudder U.S. Treasury
Money Fund, Scudder Money Market Series, Scudder Government Money Market
Series, Scudder California Tax Free Money Fund, Scudder New York Tax Free
Money Fund, Scudder Tax Free Money Fund, Scudder Tax Free Money Market
Series): the Fund currently does not intend to purchase options, unless
the aggregate premiums paid on all such options held by the Fund at any
time do not exceed 20% of its total assets; or sell put options, if as a
result, the aggregate value of the obligations underlying such put options
would exceed 50% of its total assets;
o For all Funds (except Scudder Cash Investment Trust, Scudder U.S. Treasury
Money Fund, Scudder Money Market Series, Scudder Government Money Market
Series, Scudder California Tax Free Money Fund, Scudder New York Tax Free
Money Fund, Scudder Tax Free Money Fund, Scudder Tax Free Money Market
Series): the Fund currently does not intend to enter into futures
contracts or purchase options thereon unless immediately after the
purchase, the value of the aggregate initial margin with respect to such
futures contracts entered into on behalf of the Fund and the premiums paid
for such options on futures contracts does not exceed 5% of the fair
market value of the Fund's total assets; provided that in the case of an
option that is in-the-money at the time of purchase, in-the-money amount
may be excluded in computing the 5% limit;
o For all Funds (except Scudder Cash Investment Trust, Scudder U.S. Treasury
Money Fund, Scudder Money Market Series, Scudder Government Money Market
Series, Scudder California Tax Free Money Fund,
Scudder New York Tax Free Money Fund, Scudder Tax Free Money Fund, Scudder
Tax Free Money Market Series): the Fund currently does not intend to
purchase warrants if as a result, such securities, taken at the lower of
cost or market value, would represent more than 5% of the value of the
Fund's total assets (for this purpose, warrants acquired in units or
attached to securities will be deemed to have no value);
o For Scudder Growth and Income Fund: the Fund currently does not intend to
lend portfolio securities in an amount greater than 30% of its total
assets.
o For all other Funds: the Fund currently does not intend to lend portfolio
securities in an amount greater than 5% of its total assets.
Compensation of Trustees and Directors
The corresponding Trust or Corporation information contained in the following
charts replaces the chart in each Fund's Statement of Additional Information.
The following table shows the aggregate compensation received by each
4
<PAGE>
Independent Trustee or Director during 1996 from each Trust and Corporation and
from all Scudder funds as a group. Therefore, if an individual is listed as a
Trustee or Director of a certain Trust or Corporation without receiving any
compensation, that individual was elected in 1997. Please refer to the section
titled "REMUNERATION--Compensation of Officers and Trustees or Directors" in
each Fund's Statement of Additional Information.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Total Compensation From the
Scudder Scudder Scudder Scudder Scudder Scudder Trusts and Corporations and
Name of Trustee or Equity Funds Securities Global International Mutual Fund Complex Paid to
Director Trust Trust Trust Fund, Inc. Fund, Inc. Funds, Inc. Trustee and Directors
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Paul Bancroft III $16,300 - $17,572 $42,750 $41,486 - $143,358 (16 Funds)
- -----------------------------------------------------------------------------------------------------------------------------------
Sheryle J. Bolton $17,400 $8,700 - $45,100 - - $71,200 (9 Funds)
- -----------------------------------------------------------------------------------------------------------------------------------
Thomas J. Devine $17,400 $8,700 $18,672 $45,500 $44,086 $8,700 $156,058 (18 Funds)
- -----------------------------------------------------------------------------------------------------------------------------------
Keith R. Fox $17,100 - $18,372 - $43,486 $8,550 $87,508 (10 Funds)
- -----------------------------------------------------------------------------------------------------------------------------------
Wilson Nolen $17,900 $8,950 $17,900 - $45,086 - $165,608 (17 Funds)
- -----------------------------------------------------------------------------------------------------------------------------------
Dr. Gordon Shillinglaw $17,900 - $19,172 - $45,086 $9,250 $119,918 (19 Funds)
- -----------------------------------------------------------------------------------------------------------------------------------
Robert G. Stone, Jr. $0 - $1,272 $0 $0 $0 $12,272* (2 Funds)
Honorary Trustee or
Director
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* This amount does not reflect $6,189 in retirement benefits accrued as part of
Fund Complex expenses, and $6,000 in estimated annual benefits payable upon
retirement. Retirement benefits accrued and proposed are to be paid to Mr.
Stone as additional compensation for serving on the Board of The Japan Fund,
Inc.
5
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
Scudder Scudder Total Compensation From the Trusts
Name of Trustee or Director Global Fund, International Scudder and Corporations and Fund Complex
Inc. Fund, Inc. Fund, Inc. Paid to Trustee and Directors
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Edgar R. Fiedler# - - $17,776 $108,083 (20 Funds)
- -----------------------------------------------------------------------------------------------------------------------
Dr. J. D. Hammond - - - $26,233 (7 Funds)
- -----------------------------------------------------------------------------------------------------------------------
Dr. Rosita P. Chang - - - $26,233 (7 Funds)
- -----------------------------------------------------------------------------------------------------------------------
Richard M. Hunt - - - $24,750 (6 Funds)
- -----------------------------------------------------------------------------------------------------------------------
William H. Gleysteen, Jr. $45,500 $44,086 - $130,336** (13 Funds)
- -----------------------------------------------------------------------------------------------------------------------
William H. Luers $44,750 $43,486 - $100,486 (11 Funds)
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
** This amount does not reflect $4,888 in retirement benefits accrued as part of
Fund Complex expenses, and $3,000 in estimated annual benefits payable upon
retirement. Retirement benefits accrued and proposed are to be paid to Mr.
Gleysteen as additional compensation for serving on the Board of The Japan
Fund, Inc.
# Mr. Fiedler received $17,776 from Scudder Fund, Inc. through a deferred
compensation program. As of December 31, 1996, Mr. Fiedler had a total of
$420,490 accrued over a number of years in a deferred compensation program
for serving on the Boards of Scudder Fund, Inc. and Scudder Institutional
Fund, Inc.
5
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
Scudder
Scudder Scudder State Scudder
Name of Scudder Scudder Scudder Mutual California Scudder Tax Tax Free Scudder
Trustee or Equity Funds Securities Funds, Tax Free Municipal Free Money Tax Free
Director Trust Trust Trust Inc. Trust Trust Trust Fund Trust
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Henry P. Becton - - - - $8,900 $17,800 $16,900 - -
- ----------------------------------------------------------------------------------------------------------------------------
Dawn-Marie
Driscoll - - - - $9,500 $19,000 $17,500 $9,500 $19,000
- ----------------------------------------------------------------------------------------------------------------------------
Peter B.
Freeman - $8,300 - - $9,500 $19,000 $17,500 $9,500 $19,000
- ----------------------------------------------------------------------------------------------------------------------------
George M.
Lovejoy, Jr. - - - - - $19,000 - $9,500 -
- ----------------------------------------------------------------------------------------------------------------------------
Robert W.
Lear## $0 - $0 - - - - - -
- ----------------------------------------------------------------------------------------------------------------------------
Dr. Wesley W.
Marple, Jr. - - - - - $19,000 $17,500 - $19,000
- ----------------------------------------------------------------------------------------------------------------------------
Jean C. Tempel - - - - - - $17,138 $9,200 $18,400
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Scudder Total Compensation From
Scudder U.S. the Trusts and
Name of Cash Scudder Scudder Scudder Treasury Scudder Corporations and Fund
Trustee or Investment GNMA Investment Portfolio Money Fund, Complex Paid to Trustee
Director Trust Fund Trust Trust Fund Inc. and Directors
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Henry P. Becton $8,900 - $17,800 $20,712 - - $91,012 (16 Funds)
- ------------------------------------------------------------------------------------------------------------------------
Dawn-Marie
Driscoll $9,500 $9,500 - - $9,500 - $103,000 (16 Funds)
- ------------------------------------------------------------------------------------------------------------------------
Peter B.
Freeman $9,500 - - - - $8,000 $131,734 (33 Funds)
- ------------------------------------------------------------------------------------------------------------------------
George M.
Lovejoy, Jr. $9,500 $9,500 $19,300 $22,512 $9,500 - $124,512 (13 Funds)
- ------------------------------------------------------------------------------------------------------------------------
Robert W.
Lear## - - - - - $8,000 $33,049 (11 Funds)
- ------------------------------------------------------------------------------------------------------------------------
Dr. Wesley W.
Marple, Jr. - $9,500 $19,300 $22,512 - - $106,812 (16 Funds)
- ------------------------------------------------------------------------------------------------------------------------
Jean C. Tempel - $9,200 $18,400 $21,312 $9,200 - $102,895 (16 Funds)
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
## Mr. Lear serves as Honorary Trustee for Scudder Equity Trust
6
<PAGE>
The corresponding Trustee or Director information contained in the following
chart replaces the Trustee or Director information in each Fund's Statement of
Additional Information.
TRUSTEES and DIRECTORS
<TABLE>
<CAPTION>
Name, Age, Address of
Trustees and Directors Principal Occupation** Trust(s) and/or Corporation(s)
- ---------------------- ---------------------- ------------------------------
<S> <C> <C>
Paul Bancroft III (67) Venture Capitalist and Consultant Scudder Equity Trust
1120 Cheston Lane Scudder Global Fund, Inc.
Queenstown, MD 21658 Scudder International Fund, Inc.
Scudder Mutual Funds, Inc.
Scudder Securities Trust
Henry P. Becton, Jr. (53) President and General Manager, WGBH Educational Scudder California Tax Free Trust
WGBH Foundation Scudder Cash Investment Trust
125 Western Avenue Scudder Funds Trust
Allston, MA 02134 Scudder GNMA Fund
Scudder Investment Trust
Scudder Municipal Trust
Scudder Portfolio Trust
Scudder State Tax Free Trust
Scudder Tax Free Money Fund
Scudder Tax Free Trust
Scudder U.S. Treasury Money Fund
Sheryle J. Bolton (51) Chief Executive Officer, Scientific Learning Scudder Equity Trust
560 White Plains Road Corporation. Former President and Chief Scudder Global Fund, Inc.
Tarrytown, NY 10591 Operation Officer, Physicians Online, Inc. Scudder International Fund, Inc.
(electronic transmission of clinical information Scudder Mutual Funds, Inc.
for physicians (until 1995) Scudder Securities Trust
William T. Burgin (54) General Partner, Bessemer Venture Partners; Scudder Equity Trust
P.O. Box 580 General Partner, Deer & Company Scudder Global Fund, Inc.
Dover, MA 02030-0580 Scudder International Fund, Inc.
Scudder Mutual Funds, Inc.
Scudder Securities Trust
Dr. Rosita P. Chang (42) Professor of Finance, University of Rhode Island Scudder Fund, Inc.
PACAP Research Center Scudder Pathway Series
College of Business Administration
University of Rhode Island
7 Lippitt Road
Kingston, RI 02881
Thomas J. Devine (70) Consultant Scudder Equity Trust
641 Lexington Avenue Scudder Global Fund, Inc.
28th Floor Scudder International Fund, Inc.
New York, NY 10022 Scudder Mutual Funds, Inc.
Scudder Securities Trust
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
Name, Age, Address of
Trustees and Directors Principal Occupation** Trust(s) and/or Corporation(s)
- ---------------------- ---------------------- ------------------------------
<S> <C> <C>
Dawn-Marie Driscoll (50) Executive Fellow, Center for Business Ethics, Scudder California Tax Free Trust
5760 Flamingo Drive Bentley College; President, Driscoll Associates Scudder Cash Investment Trust
Cape Coral, FL 33904 Scudder Funds Trust
Scudder GNMA Fund
Scudder Investment Trust
Scudder Municipal Trust
Scudder Portfolio Trust
Scudder State Tax Free Trust
Scudder Tax Free Money Fund
Scudder Tax Free Trust
Scudder U.S. Treasury Money Fund
Edgar R. Fiedler # (68) Senior Fellow and Economic Counsellor, The Scudder Fund, Inc.
Conference Board, Inc. Scudder Pathway Series
Keith R. Fox (43) President, Exeter Capital Management Corporation Scudder Equity Trust
10 East 53rd Street (private investment firm) Scudder Global Fund, Inc.
New York, NY 10022 Scudder International Fund, Inc.
Scudder Mutual Funds, Inc.
Scudder Securities Trust
Peter B. Freeman (65) Corporate Director and Trustee Scudder California Tax Free Trust
100 Alumni Avenue Scudder Cash Investment Trust
Providence, RI 02906 Scudder Fund, Inc.
Scudder Funds Trust
Scudder GNMA Fund
Scudder Investment Trust
Scudder Municipal Trust
Scudder Portfolio Trust
Scudder State Tax Free Trust
Scudder Tax Free Money Fund
Scudder Tax Free Trust
Scudder U.S. Treasury Money Fund
William H. Gleysteen, Jr. (71) Consultant Scudder Global Fund, Inc.
4937 Crescent St. Scudder International Fund, Inc.
Bethesda, MD 20816
Dr. J. D. Hammond (63) Dean, Smeal College of Business Administration, Scudder Fund, Inc.
801 Business Administration Building Pennsylvania State University Scudder Pathway Series
Pennsylvania State University
University Park, PA 16801
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
Name, Age, Address of
Trustees and Directors Principal Occupation** Trust(s) and/or Corporation(s)
- ---------------------- ---------------------- ------------------------------
<S> <C> <C>
Richard M. Hunt (71) University Marshall and Senior Lecturer, Harvard Scudder Fund, Inc.
University Marshal's Office University Scudder Pathway Series
Wadsworth House
1341 Massachusetts Avenue
Cambridge, MA 02138
Robert W. Lear (80) Executive-in-Residence, Visiting Professor, Scudder Equity Trust
(Honorary Director or Trustee) Columbia University Graduate School of Business Scudder Global Fund, Inc.
429 Silvermine Road Scudder International Fund, Inc.
New Canaan, CT 06840 Scudder Securities Trust
George M. Lovejoy, Jr. (67) President and Director, Fifty Associates (real Scudder California Tax Free Trust
160 Federal Street estate investment trust) Scudder Cash Investment Trust
Boston, MA 02110 Scudder Funds Trust
Scudder GNMA Fund
Scudder Investment Trust
Scudder Municipal Trust
Scudder Portfolio Trust
Scudder State Tax Free Trust
Scudder Tax Free Money Fund
Scudder Tax Free Trust
Scudder U.S. Treasury Money Fund
William H. Luers (68) President, The Metropolitan Museum of Art Scudder Equity Trust
993 Fifth Avenue Scudder Global Fund, Inc.
New York, NY 10028 Scudder International Fund, Inc.
Scudder Mutual Funds, Inc.
Scudder Securities Trust
Dr. Wesley W. Marple, Jr. (65) Professor of Business Administration, Scudder California Tax Free Trust
Northeastern University Northeastern University Scudder Cash Investment Trust
360 Huntington Avenue Scudder Funds Trust
Boston, MA 02115 Scudder GNMA Fund
Scudder Investment Trust
Scudder Municipal Trust
Scudder Portfolio Trust
Scudder State Tax Free Trust
Scudder Tax Free Money Fund
Scudder Tax Free Trust
Scudder U.S. Treasury Money Fund
Wilson Nolen (70) Consultant Scudder Equity Trust
1120 Fifth Avenue Scudder International Fund, Inc.
New York, NY 10022 Scudder Securities Trust
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
Name, Age, Address of
Trustees and Directors Principal Occupation** Trust(s) and/or Corporation(s)
- ---------------------- ---------------------- ------------------------------
<S> <C> <C>
Daniel Pierce * (63) + Managing Director of Scudder Kemper Investments, Scudder California Tax Free Trust
Inc. Scudder Cash Investment Trust
Scudder Equity Trust
Scudder Funds Trust
Scudder Global Fund, Inc.
Scudder GNMA Fund
Scudder International Fund, Inc. Scudder
Investment Trust
Scudder Municipal Trust
Scudder Mutual Funds, Inc.
Scudder Portfolio Trust
Scudder Securities Trust
Scudder State Tax Free Trust
Scudder Tax Free Money Fund
Scudder Tax Free Trust
Scudder U.S. Treasury Money Fund
Kathryn L. Quirk *(44) ++ Managing Director of Scudder Kemper Investments, Scudder California Tax Free Trust
Inc. Scudder Cash Investment Trust
Scudder Equity Trust
Scudder Funds Trust
Scudder Global Fund, Inc.
Scudder GNMA Fund
Scudder International Fund, Inc. Scudder
Investment Trust
Scudder Municipal Trust
Scudder Mutual Funds, Inc.
Scudder Portfolio Trust
Scudder Securities Trust
Scudder State Tax Free Trust
Scudder Tax Free Money Fund
Scudder Tax Free Trust
Scudder U.S. Treasury Money Fund
Robert G. Stone, Jr. (74) Chairman of the Board and Director, Kirby Scudder Equity Trust
(Honorary Trustee or Director) Corporation (inland and offshore marine Scudder Global Fund, Inc.
405 Lexington Avenue transportation and diesel repairs) Scudder International Fund, Inc.
39th Floor Scudder Mutual Funds, Inc.
New York, NY 10174 Scudder Securities Trust
Edmund R. Swanberg (75) ++ Advisory Managing Director of Scudder Kemper Scudder Securities Trust
(Honorary Trustee) Investments, Inc.
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
Name, Age, Address of
Trustees and Directors Principal Occupation** Trust(s) and/or Corporation(s)
- ---------------------- ---------------------- ------------------------------
<S> <C> <C>
Jean C. Tempel (54) Managing Partner, Technology Equity Partners; Scudder California Tax Free Trust
Ten Post Office Square Special Limited Partner, TL Ventures (a venture Scudder Cash Investment Trust
Suite 1325 capital fund) Scudder Funds Trust
Boston, MA 02109 Scudder GNMA Fund
Scudder Investment Trust
Scudder Municipal Trust
Scudder Portfolio Trust
Scudder State Tax Free Trust
Scudder Tax Free Money Fund
Scudder Tax Free Trust
Scudder U.S. Treasury Money Fund
</TABLE>
* Mr. Pierce and Ms. Quirk are considered by the Trusts and Corporations and
counsel to be persons who are "interested persons" of the Adviser or of
the Trusts and Corporations, within the meaning of the Investment Company
Act of 1940, as amended.
** Unless otherwise stated, all the Directors and Trustees have been
associated with their respective companies for more than five years, but
not necessarily in the same capacity.
+ Address: Two International Place, Boston, Massachusetts
++ Address: 345 Park Avenue, New York, New York
# Although Mr. Fiedler is currently not an "interested person," he may be
deemed to be so in the future by the Securities and Exchange Commission
because of his prior service as a director of Zurich American Insurance
Company, a subsidiary of Zurich. Mr. Fiedler resigned from that position
in July 1997 and has had no further affiliation with Zurich or any of its
subsidiaries since that date.
February 11, 1998
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