Supplement to currently effective Statement of Additional Information of each of
the listed funds
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Scudder Balanced Fund Scudder Money Market Series
Scudder California Tax Free Fund Scudder New York Tax Free Fund
Scudder California Tax Free Money Fund Scudder New York Tax Free Money Fund
Scudder Classic Growth Fund Scudder Ohio Tax Free Fund
Scudder GNMA Fund Scudder Pathway Series:
Scudder Government Money Market Series Conservative Portfolio
Scudder High Yield Bond Fund International Portfolio
Scudder High Yield Tax Free Fund Scudder Pennsylvania Tax Free Fund
Scudder Limited Term Tax Free Fund Scudder Small Company Value Fund
Scudder Managed Municipal Bonds Scudder Tax Free Money Fund
Scudder Massachusetts Limited Term Tax Free Fund Scudder Tax Free Money Market Series
Scudder Massachusetts Tax Free Fund Scudder Value Fund
Scudder Medium Term Tax Free Fund Scudder 21st Century Growth Fund
Scudder Micro Cap Fund
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At special meetings of shareholders, a majority of the shareholders of each Fund
and Series listed above approved a proposal which gives the respective Board of
Directors or Board of Trustees the discretion to retain the current distribution
arrangement for the Fund or Series while investing in a master fund in a
master/feeder fund structure as described below.
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 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.
October 31, 1997
