Supplement to each currently effective Statement of Additional Information
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<S> <C>
Scudder 21st Century Growth Fund Scudder Large Company Growth Fund
Scudder Balanced Fund The Japan Fund, Inc.
Scudder California Tax Free Fund Scudder Large Company Value Fund
Scudder Capital Growth Fund Scudder Latin America Fund
Classic Growth Fund Scudder Managed Municipal Bonds
Scudder Development Fund Scudder Massachusetts Tax Free Fund
Scudder Dividend and Growth Fund Scudder Medium Term Tax Free Fund
Scudder Emerging Markets Growth Fund Scudder New York Tax Free Fund
Scudder Emerging Markets Income Fund Scudder Pacific Opportunities Fund
Scudder Global Bond Fund Scudder Pathway Series: Balanced Portfolio
Global Discovery Fund Scudder Pathway Series: Conservative Portfolio
Scudder Global Fund Scudder Pathway Series: Growth Portfolio
Scudder GNMA Fund Scudder S&P 500 Index Fund
Scudder Gold Fund Scudder Select 1000 Growth Fund
Scudder Greater Europe Growth Fund Scudder Select 500 Fund
Scudder Growth and Income Fund Scudder Short Term Bond Fund
Scudder Health Care Fund Scudder Small Company Stock Fund
Scudder High Yield Bond Fund Scudder Small Company Value Fund
Scudder High Yield Tax Free Fund Scudder Tax Free Money Fund
Scudder Income Fund Scudder Technology Fund
Scudder International Fund Value Fund
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The following information supplements the disclosure in the "Additional
Information About Investment Techniques" section of each Statement of Additional
Information for each Fund:
Investment of Uninvested Cash Balances. Each Fund may have cash balances that
have not been invested in portfolio securities ("Uninvested Cash"). Uninvested
Cash may result from a variety of sources, including dividends or interest
received from portfolio securities, unsettled securities transactions, reserves
held for investment strategy purposes, scheduled maturity of investments,
liquidation of investment securities to meet anticipated redemptions and
dividend payments, and new cash received from investors. Uninvested Cash may be
invested directly in money market instruments or other short-term debt
obligations. Pursuant to an Exemptive Order issued by the SEC, each Fund may use
Uninvested Cash to purchase shares of affiliated funds including money market
funds, short-term bond funds and Scudder Cash Management Investment Trust, or
one or more future entities for which Scudder Kemper Investments acts as trustee
or investment advisor that operate as cash management investment vehicles and
that are excluded from the definition of investment company pursuant to section
3(c)(1) or 3(c)(7) of the Investment Company Act of 1940 (collectively, the
"Central Funds") in excess of the limitations of Section 12(d)(1) of the
Investment Company Act. Investment by each Fund in shares of the Central Funds
will be in accordance with the Fund's investment policies and restrictions as
set forth in its registration statement.
Certain of the Central Funds comply with rule 2a-7 under the Act. The other
Central Funds are or will be short-term bond funds that invest in fixed-income
securities and maintain a dollar weighted average maturity of three years or
less. Each of the Central Funds will be managed specifically to maintain a
highly liquid portfolio, and access to them will enhance each Fund's ability to
manage Uninvested Cash.
Each Fund will invest Uninvested Cash in Central Funds only to the extent that
each Fund's aggregate investment in the Central Funds does not exceed 25% of its
total assets in shares of the Central Funds. Purchase and sales of shares of
Central Funds are made at net asset value.
December 1, 2000
