497 1 ss020503multi.txt Supplement to the currently effective Statement of Additional Information of each of the listed funds: Scudder 21st Century Growth Fund Scudder Income Fund Scudder Aggressive Growth Fund Scudder International Fund Scudder California Tax-Free Income Fund Scudder International Equity Fund Scudder Capital Growth Fund Scudder International Select Equity Fund Scudder Contrarian Fund Scudder Japanese Equity Fund Scudder-Dreman Financial Services Fund Scudder Large Company Growth Fund Scudder-Dreman High Return Equity Fund Scudder Large Company Value Fund Scudder-Dreman Small Cap Value Fund Scudder Latin America Fund Scudder Dynamic Growth Fund Scudder Managed Municipal Bond Fund Scudder Emerging Markets Growth Fund Scudder Massachusetts Tax-Free Fund Scudder Emerging Markets Income Fund Scudder Medium-Term Tax-Free Fund Scudder European Equity Fund Scudder New Europe Fund Scudder Flag Investors Communications Fund Scudder New York Tax-Free Income Fund Scudder Flag Investors Equity Partners Fund Scudder Pacific Opportunities Fund Scudder Flag Investors Value Builder Fund Scudder Pathway Series -- Conservative Portfolio Scudder Florida Tax-Free Income Fund Scudder Pathway Series -- Growth Portfolio Scudder Focus Value+Growth Fund Scudder Pathway Series -- Moderate Portfolio Scudder Global Fund Scudder RREEF Real Estate Securities Fund Scudder Global Biotechnology Fund Scudder S&P 500 Stock Fund Scudder Global Bond Fund Scudder Select 500 Fund Scudder Global Discovery Fund Scudder Short-Term Bond Fund Scudder Gold and Precious Metals Fund Scudder Small Company Stock Fund Scudder Greater Europe Growth Fund Scudder Small Company Value Fund Scudder Growth Fund Scudder Technology Fund Scudder Health Care Fund Scudder Technology Innovation Fund Scudder High Income Opportunity Fund Scudder Top 50 US Fund Scudder High-Yield Tax-Free Fund Scudder Total Return Fund
The following information supplements the Purchases and Redemptions of Shares section of each of the listed Funds' Statements of Additional Information: Class C Purchases. Effective February 3, 2003, Class C shares will be offered at net asset value plus an up-front sales charge of 1.00% of the offering price. Class C shares will continue to be subject to a contingent deferred sales charge and Rule 12b-1 distribution and/or service fee as more fully described in each fund's currently effective prospectus. The up-front sales charge does not apply to reinvested dividends or distributions. You may be able to buy Class C shares without an up-front sales charge when you purchase Class C shares in connection with the following types of transactions: o Additional purchases of Class C shares made in an existing account and in the same fund(s) by existing Class C shareowners as of January 31, 2003; o Exchanges of Class C shares made in an existing account by current Class C shareowners as of January 31, 2003; o Purchases of Class C shares through certain omnibus accounts which have entered into an agreement with the Advisor and/or the Distributor; o Purchases of Class C shares through certain retirement plans which have entered into an agreement with the Advisor and/or the Distributor; and o Purchases of Class C shares through certain broker-dealers which have entered into an agreement with the Advisor and/or the Distributor. Your financial representative or Shareholder Services can answer your questions and help you determine if you are eligible for a sales charge waiver. The following information updates the Average Annual Total Returns and the Performance section of each of the listed Funds' Statements of Additional Information: Unless otherwise indicated, Class A performance information includes the effect of the maximum initial sales charge. Class B performance information includes the effect of the maximum contingent deferred sales charge. Class C performance information includes the effect of the maximum initial sales charge and the maximum contingent deferred sales charge. Average Annual Total Return Average annual total return is the average annual compound rate of return for the periods of one year, five years and ten years (or such shorter periods as may be applicable dating from the commencement of a Fund's operations), all ended on the last day of a recent calendar quarter. Average annual total return quotations reflect changes in the price of a Fund's shares and assume that all dividends and capital gains distributions during the respective periods were reinvested in Fund shares. Average annual total return is calculated by computing the average annual compound rates of return of a hypothetical investment over such periods, according to the following formula (average annual total return is then expressed as a percentage): T = (ERV/P)^1/n - 1 Where: T = Average Annual Total Return P = A hypothetical initial investment of $1,000 N = number of years ERV = ending redeemable value: ERV is the value, at the end of the applicable period, of a hypothetical $1,000 investment made at the beginning of the applicable period
----------------------------------------------------------------------------- Class C Average Annual Total Returns ----------------------------------------------------------------------------- ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Average Annual Total Returns Life Inception for the Period Of Date if Fund Ended: 1 Year 5 Year 10 Year Fund applicable ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder 21st Century Growth Fund 7/31/02 -41.78% -3.52% n/a -1.98% 9/9/1996 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Aggressive Growth Fund 9/30/02 -25.13% -7.28% n/a -1.75% 12/31/1996 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder California Tax-Free Income Fund 8/31/02 3.51% 4.72% 5.09% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Capital Growth Fund 9/30/02 -24.41% -5.81% 5.78% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Contrarian Fund 11/30/01 8.01% 8.13% 12.53% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder-Dreman Financial Services Fund 11/30/01 0.21% n/a n/a 2.34% 3/9/1998 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder-Dreman High Return Equity Fund 11/30/01 8.00% 11.18% 16.73% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder-Dreman Small Cap Value Fund 11/30/01 17.29% 1.33% n/a 9.35% 5/22/1992 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Dynamic Growth Fund 9/30/02 -33.27% -16.81% -0.85% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Emerging Markets Growth Fund 10/31/01 -26.78% -9.35% n/a -7.50% 5/8/1996 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Emerging Markets Income Fund 10/31/01 3.07% 1.58% n/a 4.98% 12/31/1993 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder European Equity Fund 10/31/01 -29.89% 23.80% n/a 24.34% 9/3/1996 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Flag Investors Communications 12/31/01 -31.48% n/a n/a -2.53% 1/18/1984 Fund ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Flag Investors Equity Partners 5/31/02 -9.46% n/a n/a 6.50% 10/28/1998 Fund ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Flag Investors Value Builder 3/31/02 -0.38% n/a n/a 3.95% 4/8/1998 Fund ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Florida Tax-Free Income Fund 8/31/02 4.07% 4.61% 5.24% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Focus Value+Growth Fund 11/30/01 -15.86% 5.07% n/a 9.37% 10/16/1995 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Global Fund 8/31/02 -18.30% -1.35% 5.93% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Global Biotechnology Fund 8/31/02 -40.86% n/a n/a -28.18% 3/30/2001 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Global Bond Fund 10/31/01 7.99% 2.19% 2.94% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Global Discovery Fund 10/31/01 -35.34% 5.75% 9.00% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Gold and Precious Metals Fund 10/31/01 26.62% -12.56% -0.27% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Greater Europe Growth Fund 10/31/01 -27.56% 6.90% n/a 10.29% 10/10/1994 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Growth Fund 9/30/02 -27.81% -9.71% 1.03% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Health Care Fund 5/31/02 -13.81% n/a n/a 8.47% 3/2/1998 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder High Income Opportunity Fund 1/31/02 -3.98% 2.08% n/a 3.81% 6/27/1996 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder High-Yield Tax-Free Fund 5/31/02 5.10% 5.00% 5.57% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Income Fund 1/31/02 2.28% 4.59% 5.58% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder International Fund 8/31/02 -20.57% -1.64% 4.43% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder International Equity Fund 10/31/01 -30.40% 1.96% n/a 7.46% 8/4/1992 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder International Select Equity Fund 10/31/01 -27.80% 8.74% n/a 9.96% 5/15/1995 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Japanese Equity Fund 8/31/02 -8.01% n/a n/a -21.17% 5/31/2000 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Large Company Growth Fund 7/31/02 -32.56% -4.74% 5.19% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Large Company Value Fund 7/31/02 -21.93% -0.86% 8.02% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Latin America Fund 10/31/01 -18.93% -0.65% n/a 6.04% 12/8/1992 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Managed Municipal Bond Fund 5/31/02 4.75% 4.86% 5.48% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Massachusetts Tax-Free Fund 3/31/02 1.34% 4.41% 5.50% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Medium-Term Tax-Free Fund 5/31/02 3.57% 3.96% 4.74% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder New Europe Fund 10/31/01 -28.27% 9.77% 10.08% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder New York Tax-Free Income Fund 8/31/02 3.37% 4.79% 5.15% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Pacific Opportunities Fund 10/31/01 -28.25% -14.76% n/a -5.88% 12/8/1992 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Pathway Series: Conservative 8/31/02 -7.38% 0.04% n/a 1.78% 11/15/1996 Portfolio ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Pathway Series: Growth 8/31/02 -18.01% -0.64% n/a 1.69% 11/15/1996 Portfolio ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Pathway Series: Moderate 8/31/02 -12.39% -0.88% n/a 1.05% 11/15/1996 Portfolio ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder RREEF Real Estate Securities 11/30/01 16.78% n/a n/a 19.29% 12/1/1999 Fund ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder S&P 500 Stock Fund 8/31/02 -20.35% n/a n/a -19.46% 4/3/2000 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Select 500 Fund 2/28/02 -10.35% n/a n/a -4.07% 5/17/1999 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Short-Term Bond Fund 12/31/01 4.48% 3.92% 3.89% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Small Company Stock Fund 9/30/02 -1.99% -5.36% n/a 0.12% 2/1/1997 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Small Company Value Fund 7/31/02 -4.63% 1.08% n/a 8.09% 10/6/1995 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Technology Fund 10/31/01 -58.27% 7.89% 12.07% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Technology Innovation Fund 5/31/02 -44.87% n/a n/a 0.75% 3/2/1998 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Top 50 US Fund 8/31/02 -24.16% n/a n/a -7.12% 9/2/1998 ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ---------- Scudder Total Return Fund 10/31/01 -15.04% 6.21% 7.57% n/a n/a ----------------------------------------- ----------------- ---------- ----------- ----------- ----------- ----------
February 5, 2003