August 8, 1995
Dear Scudder Investor,
We're pleased to announce that Scudder Growth and Income Fund's Board of
Trustees has voted to change the Fund's fee schedule to help shareholders
benefit from economies of scale provided by the Fund's growth.
The prospectus supplement on the reverse side lists the Fund's new management
fee schedule. The management fee for the portion of the Fund's assets above $2
billion has been reduced from 0.475% to 0.45%. The fee schedule for assets below
$2 billion remains the same. Since the Fund's current size is approximately $2.6
billion, the overall management fee has been reduced from 0.518% to 0.512%. If
assets in the Fund increase, the weighted management fee ratio will decline
further. For example, if the Fund grew to $3 billion, the overall management fee
would be 0.50%.
If you have any questions about these changes, please call us at
1-800-225-2470, between 8 a.m. and 8 p.m., eastern time, Monday through Friday.
We will be happy to help you.
Sincerely,
/s/David S. Lee
David S. Lee
President, Scudder Investor Services, Inc.
This letter is for explanatory purposes and is not part of the prospectus
supplement on the reverse side.
(over please)
<PAGE>
Scudder Growth and Income Fund
Supplement to Prospectus
Dated May 1, 1995
As Revised June 7, 1995
On August 8, 1995, the Fund's Board of Trustees approved a new Investment
Management Agreement, which reduced the management fee payable to the Adviser on
assets in excess of $2 billion. The complete fee schedule is:
Annual Investment
Average daily net assets Management fee rate
------------------------ -------------------
First $500 million 0.60 of 1%
Exceeding $500 million 0.55 of 1%
Exceeding $1 billion 0.50 of 1%
Exceeding $1.5 billion 0.475 of 1%
Exceeding $2 billion 0.45 of 1%
The effect of this graduation is that increases in the Fund's net assets will
result in a lower annual fee rate and decreases in the Fund's net assets will
result in a higher annual fee rate.
As of August 8, 1995, the effective date of the new Investment Management
Agreement, the Fund's net assets were approximately $2.6 billion.
August 8, 1995
