Supplement to the currently effective Statement of Additional Information
                        for each of the following Funds:


                                                          
Classic Growth Fund                                          Scudder Large Company Value Fund
Global Discovery Fund                                        Scudder Latin America Fund
Scudder 21st Century Growth Fund                             Scudder Managed Municipal Bonds
Scudder Balanced Fund                                        Scudder Massachusetts Tax Free Fund
Scudder California Tax Free Fund                             Scudder Medium Term Tax Free Fund
Scudder Capital Growth Fund                                  Scudder Money Market Series
Scudder Cash Investment Trust                                Scudder New York Tax Free Fund
Scudder Development Fund                                     Scudder Pacific Opportunities Fund
Scudder Emerging Markets Growth Fund                         Scudder Pathway Series: Moderate Portfolio
Scudder Emerging Markets Income Fund                         Scudder Pathway Series: Conservative Portfolio
Scudder Global Bond Fund                                     Scudder Pathway Series: Growth Portfolio
Scudder Global Fund                                          Scudder S&P 500 Index Fund
Scudder GNMA Fund                                            Scudder Select 1000 Growth Fund
Scudder Gold Fund                                            Scudder Select 500 Fund
Scudder Greater Europe Growth Fund                           Scudder Short Term Bond Fund
Scudder Growth and Income Fund                               Scudder Small Company Stock Fund
Scudder Health Care Fund                                     Scudder Small Company Value Fund
Scudder High Yield Opportunity Fund                          Scudder Tax Free Money Fund
Scudder High Yield Tax Free Fund                             Scudder Technology Innovation Fund
Scudder Income Fund                                          Scudder U.S. Treasury Money Fund
Scudder International Fund                                   Value Fund
Scudder Large Company Growth Fund





The  following   information  replaces  similar  disclosure  in  the  "Portfolio
Transactions  -  Brokerage  Commissions"  section of each  Fund's  Statement  of
Additional Information:

         When it can be done  consistently with the policy of obtaining the most
favorable net results,  it is the  Advisor's  practice to place such orders with
broker/dealers  who supply research,  market and statistical  information to the
Advisor or the Fund.  The term  "research  services"  includes  advice as to the
value of securities;  the  advisability  of investing in,  purchasing or selling
securities;   the  availability  of  securities  or  purchasers  or  sellers  of
securities; and analyses and reports concerning issuers, industries, securities,
economic factors and trends, portfolio strategy and the performance of accounts.
The Advisor is authorized when placing  portfolio  transactions,  if applicable,
for the Fund to pay a  brokerage  commission  in  excess of that  which  another
broker might charge for executing the same  transaction  on account of execution
services  and the receipt of  research  services.  The  Advisor  has  negotiated
arrangements,  which are not applicable to most fixed-income transactions,  with
certain  broker/dealers  pursuant to which a broker/dealer will provide research
services,  to the  Advisor  or the Fund in  exchange  for the  direction  by the
Advisor of  brokerage  transactions  to the  broker/dealer.  These  arrangements
regarding  receipt  of  research  services  generally  apply to equity  security
transactions.  The Advisor may place  orders with a  broker/dealer  on the basis
that the  broker/dealer  has or has not sold  shares of the Fund.  In  effecting
transactions  in  over-the-counter  securities,   orders  are  placed  with  the
principal  market makers for the security being traded unless,  after exercising
care, it appears that more favorable results are available elsewhere.


[CODE]
May 23, 2001