Supplement to currently effective Statement of Additional Information of
each of the listed funds
<TABLE>
<CAPTION>
<S> <C>
Scudder Balanced Fund Scudder Limited Term Tax Free Fund
Scudder California Tax Free Fund Scudder Managed Municipal Bonds
Scudder California Tax Free Money Fund Scudder Massachusetts Limited Term Tax Free Fund
Scudder Cash Investment Trust Scudder Massachusetts Tax Free Fund
Scudder Development Fund Scudder Medium Term Tax Free Fund
Scudder Dividend & Growth Fund Scudder Money Market Series
Scudder Emerging Markets Growth Fund Scudder New York Tax Free Fund
Scudder Emerging Markets Income Fund Scudder New York Tax Free Money Fund
Scudder Financial Services Fund Scudder Ohio Tax Free Fund
Scudder Global Bond Fund Scudder Pacific Opportunities Fund
Scudder Global Discovery Fund Scudder Pathway Series:
Scudder Global Fund Balanced Portfolio
Scudder GNMA Fund Conservative Portfolio
Scudder Gold Fund Growth Portfolio
Scudder Government Money Market Series International Portfolio
Scudder Greater Europe Growth Fund Scudder Pennsylvania Tax Free Fund
Scudder Growth and Income Fund Scudder Real Estate Investment Fund
Scudder Health Care Fund Scudder S&P 500 Index Fund
Scudder High Yield Bond Fund Scudder Short Term Bond Fund
Scudder High Yield Tax Free Fund Scudder Tax Free Money Fund
Scudder Income Fund Scudder Tax Free Money Market Series
Scudder International Bond Fund Scudder Tax Managed Growth Fund
Scudder International Fund Scudder Tax Managed Small Company Fund
Scudder International Growth Fund Scudder Technology Fund
Scudder International Growth and Income Fund Scudder U.S. Treasury Money Fund
Scudder International Value Fund Scudder Value Fund
Scudder Large Company Growth Fund
Scudder Large Company Value Fund
Scudder Latin America Fund
</TABLE>
Zurich Insurance Company ("Zurich"), which is the majority owner of each
Fund's investment manager, Scudder Kemper Investments, Inc. ("Scudder
Kemper"), has combined its businesses with the financial services businesses
of B.A.T Industries p.l.c. ("B.A.T"). The resulting company, Zurich Financial
Services ("Zurich Financial Services"), has become Zurich's parent company.
As a result of the Zurich-B.A.T transaction, the former shareholders of B.A.T
indirectly own a 43% interest in Zurich through a new holding company, Allied
Zurich p.l.c. This change in ownership of Zurich may be deemed to have caused
a "change in control" of Scudder Kemper, even though Scudder Kemper's
operations will not change as a result. The Investment Company Act of 1940,
which regulates investment companies such as your Fund, requires that fund
shareholders approve a new investment management agreement whenever there is
a change in control of a fund's investment manager (even in the most
technical sense). Although this transaction will have virtually no effect on
the operations of Scudder Kemper or the Funds, each Fund's shareholders
approved a new investment management agreement for the Fund to assure that
there is no interruption in the services Scudder Kemper provides to the Fund.
A special meeting of shareholders (the "special meeting") of each Fund was
held on December 15, 1998 (December 17, 1998 for Scudder Classic Growth Fund,
Scudder Value Fund and Scudder Global Discovery Fund), at which time the
shareholders approved the new investment management agreements. Each new
investment management agreement (each an "Investment Management Agreement"
and, collectively, the "Investment Management Agreements") is effective as of
September 7, 1998 and 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 substantially identical to the
corresponding previous investment management agreement, except for the dates
of execution and termination and, in the case of certain funds, the addition
of certain breakpoints in fee structures.
<PAGE>
Each Fund's fundamental lending policy has been amended by a vote of
shareholders at the special meeting. As a matter of fundamental policy, each
Fund may not:
o make loans 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.
In addition, Scudder S&P 500 Index Fund has amended its fundamental borrowing
policy by a vote of shareholders at the special meeting. As a matter of
fundamental policy, the Fund may 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.
December 28, 1998
