SCUDDER
                                                                     INVESTMENTS


Scudder International Equity Fund

Classes A, B and C

Supplement to the Prospectus dated February 28, 2003, as supplemented from time
to time.

--------------------------------------------------------------------------------

The following information replaces the text on pages 4 to 8 of the prospectus.


The Fund's Main Investment Strategy

The fund seeks long-term capital appreciation. The fund is a feeder fund in a
master/feeder arrangement. The fund pursues its investment objective by
investing substantially all of its assets in a master portfolio, the
International Equity Portfolio (the "Portfolio"), a separate mutual fund which
has the same investment objective and policies as the fund. Under normal
circumstances, the fund, through the Portfolio, invests at least 80% of its
assets, determined at the time of purchase, in the stocks and other securities
with equity characteristics of companies in developed countries outside the
United States. The Portfolio invests for capital appreciation, not income; any
dividend or interest income is incidental to the pursuit of that goal.

Almost all the companies in which the Portfolio invests are based in the
developed foreign countries that make up the MSCI EAFER Index, plus Canada. The
Portfolio may also invest a portion of its assets in companies based in the
emerging markets of Latin America, the Middle East, Europe, Asia and Africa if
the portfolio managers believe that their return potential more than compensates
for the extra risks associated with these markets. While the managers have
invested in emerging markets in the past, under normal market conditions they do
not consider this a central element of the Portfolio's strategy. Typically, the
Portfolio would not hold more than 15% of its net assets in emerging markets. In
implementing this overall strategy, the Portfolio may experience a high
portfolio turnover rate.



The Portfolio invests for the long term. The portfolio managers employ a
strategy of growth at a reasonable price. The managers seek to identify
companies outside the United States that combine strong potential for earnings
growth with reasonable investment value. Such companies typically exhibit
increasing rates of profitability and cash flow, yet their share prices compare
favorably to other stocks in a given market and to their global peers. In
evaluating stocks, the managers consider factors such as sales, earnings, cash
flow and enterprise value. Enterprise value is a company's market capitalization
plus the value of its net debt. The managers further consider the relationship
between these and other quantitative factors. Together, these indicators of
growth and value may identify companies with improving prospects before the
market in general has taken notice.

Company research lies at the heart of the portfolio managers' investment
process, as it does with many stock mutual funds. The portfolio managers track
several thousand companies to arrive at the approximately 100 stocks the fund
normally holds. But the portfolio managers' process brings an added dimension to
this fundamental research. They draw on the insight of experts from a range of
financial disciplines -- regional stock market specialists, global industry
specialists, economists and quantitative analysts. They challenge, refine and
amplify each other's ideas. Their close collaboration is a critical element of
the portfolio managers' investment process.

                                       2


The Portfolio may invest in various instruments commonly known as "derivatives"
to increase or decrease its exposure to an asset class, securities market, index
or currency. The Portfolio will primarily use futures, options, options on
futures, forward currency transactions and swaps. The portfolio managers may use
derivatives in circumstances when the portfolio managers believe the derivatives
offer an economical means of gaining exposure to a particular asset class,
securities market, index or currency. The Portfolio may also invest in
derivatives to gain exposure to the market while, at the same time, maintaining
a high degree of liquidity in order to meet shareholder redemptions or other
needs. Use of some derivatives may have the effect of leveraging the Portfolio's
exposure to a particular asset class or other investment, which heightens risk
but may also allow for enhanced returns. In implementing this strategy, the
Portfolio may experience a high portfolio turnover rate.










--------------------------------------------------------------------------------

Futures, options and options on futures contracts are used as a low-cost method
for gaining exposure to a particular securities market or index without
investing directly in those securities.

Forward currency transactions are the purchase or sale of a foreign currency at
an exchange rate established now, but with payment and delivery at a specified
future time. Forward currency transactions may be used in an attempt to hedge
against losses, or, where possible, to add to investment returns.

A swap is a transaction where one security or characteristic of a security is
swapped for another.

Portfolio Turnover. The portfolio turnover rate measures the frequency that the
Portfolio sells and replaces the securities it holds within a given period.
Recently, the Portfolio has had a high portfolio turnover rate. High turnover
can increase the Portfolio's transaction costs, thereby lowering its returns. It
may also increase your tax liability if you do not hold the fund in a
tax-advantaged account such as an IRA.

                                       3


The Main Risks of Investing in the Fund

There are several risk factors that could hurt the fund's performance, cause you
to lose money or make the fund perform less well than other investments.

Market Risk. Although individual stocks can outperform their local markets,
deteriorating market conditions might cause an overall weakness in the stock
prices of the entire market.

Security Selection Risk. A risk that pervades all investing is the risk that the
securities in the Portfolio's portfolio will decline in value. To minimize this
risk, the portfolio managers monitor each of the stocks in the Portfolio
according to three basic quantitative criteria. They subject a stock to
intensive review if:

o  its rate of price appreciation begins to trail that of its national stock
   index;

o  the financial analysts who follow the stock, both within the advisor and
   outside, cut their estimates of the stock's future earnings; or

o  the stock's price approaches the downside target the managers set when they
   first bought the stock (and may since have modified to reflect changes in
   market and economic conditions).

In this review, the managers seek to learn if the deteriorating performance
accurately reflects deteriorating prospects or if, in their view, it merely
reflects investor overreaction to temporary circumstances.

Foreign Stock Market Risk. From time to time, foreign capital markets have
exhibited more volatility than those in the United States. Trading stocks on
some foreign exchanges is inherently more difficult than trading in the United
States for reasons including:

o  Political Risk. Some foreign governments have limited the outflow of profits
   to investors abroad, extended diplomatic disputes to include trade and
   financial relations, and imposed high taxes on corporate profits. While these
   political risks have not occurred recently in the major countries in which
   the fund invests, we analyze countries and regions to try to anticipate these
   risks.

o  Information Risk. Financial reporting standards for companies based in
   foreign markets differ from those in the United States and may present an
   incomplete or misleading picture of a foreign company compared to US
   standards.

--------------------------------------------------------------------------------

The fund is designed for individuals who are seeking high capital appreciation
and are willing to accept the risks of investing in the stocks of foreign
companies.

                                       4


o  Liquidity Risk. Stocks that trade less can be more difficult or more costly
   to buy, or to sell, than more liquid or active stocks. This liquidity risk is
   a factor of the trading volume of a particular stock, as well as the size and
   liquidity of the entire local market. On the whole, foreign exchanges are
   smaller and less liquid than the US market. This can make buying and selling
   certain shares more difficult and costly. Relatively small transactions in
   some instances can have a disproportionately large effect on the price and
   supply of shares. In certain situations, it may become virtually impossible
   to sell a stock in an orderly fashion at a price that approaches the
   managers' estimate of its value.

o  Regulatory Risk. There is generally less government regulation of foreign
   markets, companies and securities dealers than in the US.

o  Currency Risk. The Portfolio invests in foreign securities denominated in
   foreign currencies. This creates the possibility that changes in foreign
   exchange rates will affect the value of foreign securities or the US dollar
   amount of income or gain received on these securities. The portfolio managers
   seek to minimize this risk by actively managing the currency exposure of the
   Portfolio.

In an effort to reduce these foreign stock market risks, the portfolio managers
diversify the fund's investments, just as you may spread your investments among
a range of securities so that a setback in one need not overwhelm your entire
strategy. In this way, a reversal in one market or stock need not undermine the
pursuit of long-term capital appreciation.

Emerging Market Risk. To the extent that the Portfolio does invest in emerging
markets to enhance overall returns, it may face higher political, information,
and stock market risks. In addition, profound social changes and business
practices that depart from norms in developed countries' economies have hindered
the orderly growth of emerging economies and their stock markets in the past.
High levels of debt tend to make emerging economies heavily reliant on foreign
capital and vulnerable to capital flight. For all these reasons, the portfolio
managers carefully limit and balance the Portfolio's commitment to these
markets.

Derivative Risk. Derivatives may be more volatile and less liquid than
traditional securities. Risks associated with derivatives include:

o  the derivative may not fully offset the underlying positions;

o  the derivatives used for risk management may not have the intended effects
   and may result in losses or missed opportunities;

o  the possibility the Portfolio cannot sell the derivative because of an
   illiquid secondary market; and

                                       5


o  the risk that the derivatives transaction could expose the fund to the effect
   of leverage, which could increase the fund's exposure to the market and
   potential losses that it could have if it had not entered into these
   transactions. There is no guarantee that these derivatives activities will be
   employed or that they will work, and their use could cause lower returns or
   even losses to the fund.












               Please Retain This Supplement for Future Reference










July 17, 2003



                                                                     SCUDDER
                                                                     INVESTMENTS


Scudder International Equity Fund Institutional -- Class I and Class II

Supplement to the Prospectus dated February 28, 2003, as supplemented from time
to time.

--------------------------------------------------------------------------------

The following information replaces the text on pages 4 to 7 of the prospectus.

The Fund's Main Investment Strategy

The fund seeks long-term capital appreciation. The fund is a feeder fund in a
master/feeder arrangement. The fund pursues its investment objective by
investing substantially all of its assets in a master portfolio, the
International Equity Portfolio (the "Portfolio"), a separate mutual fund which
has the same investment objective and policies as the fund. Under normal
circumstances, the fund, through the Portfolio, invests at least 80% of its
assets, determined at the time of purchase, in the stocks and other securities
with equity characteristics of companies in developed countries outside the
United States. The Portfolio invests for capital appreciation, not income; any
dividend or interest income is incidental to the pursuit of that goal.

Almost all the companies in which the Portfolio invests are based in the
developed foreign countries that make up the MSCI EAFER Index, plus Canada. The
Portfolio may also invest a portion of its assets in companies based in the
emerging markets of Latin America, the Middle East, Europe, Asia and Africa if
the portfolio managers believe that their return potential more than compensates
for the extra risks associated with these markets. While the managers have
invested in emerging markets in the past, under normal market conditions they do
not consider this a central element of the Portfolio's strategy. Typically, the
Portfolio would not hold more than 15% of its net assets in emerging markets. In
implementing this overall strategy, the Portfolio may experience a high
portfolio turnover rate.



The Portfolio invests for the long term. The portfolio managers employ a
strategy of growth at a reasonable price. The managers seek to identify
companies outside the United States that combine strong potential for earnings
growth with reasonable investment value. Such companies typically exhibit
increasing rates of profitability and cash flow, yet their share prices compare
favorably to other stocks in a given market and to their global peers. In
evaluating stocks, the managers consider factors such as sales, earnings, cash
flow and enterprise value. Enterprise value is a company's market capitalization
plus the value of its net debt. The managers further consider the relationship
between these and other quantitative factors. Together, these indicators of
growth and value may identify companies with improving prospects before the
market in general has taken notice.

Company research lies at the heart of the portfolio managers' investment
process, as it does with many stock mutual funds. The portfolio managers track
several thousand companies to arrive at the approximately 100 stocks the fund
normally holds. But the portfolio managers' process brings an added dimension to
this fundamental research. They draw on the insight of experts from a range of
financial disciplines -- regional stock market specialists, global industry
specialists, economists and quantitative analysts. They challenge, refine and
amplify each other's ideas. Their close collaboration is a critical element of
the portfolio managers' investment process.

                                       2


The Portfolio may invest in various instruments commonly known as "derivatives"
to increase or decrease its exposure to an asset class, securities market, index
or currency. The Portfolio will primarily use futures, options, options on
futures, forward currency transactions and swaps. The portfolio managers may use
derivatives in circumstances when the portfolio managers believe the derivatives
offer an economical means of gaining exposure to a particular asset class,
securities market, index or currency. The Portfolio may also invest in
derivatives to gain exposure to the market while, at the same time, maintaining
a high degree of liquidity in order to meet shareholder redemptions or other
needs. Use of some derivatives may have the effect of leveraging the Portfolio's
exposure to a particular asset class or other investment, which heightens risk
but may also allow for enhanced returns. In implementing this strategy, the
Portfolio may experience a high portfolio turnover rate.










--------------------------------------------------------------------------------

Futures, options and options on futures contracts are used as a low-cost method
for gaining exposure to a particular securities market or index without
investing directly in those securities.

Forward currency transactions are the purchase or sale of a foreign currency at
an exchange rate established now, but with payment and delivery at a specified
future time. Forward currency transactions may be used in an attempt to hedge
against losses, or, where possible, to add to investment returns.

A swap is a transaction where one security or characteristic of a security is
swapped for another.

Portfolio Turnover. The portfolio turnover rate measures the frequency that the
Portfolio sells and replaces the securities it holds within a given period.
Recently, the Portfolio has had a high portfolio turnover rate. High turnover
can increase the Portfolio's transaction costs, thereby lowering its returns. It
may also increase your tax liability if you do not hold the fund in a
tax-advantaged account such as an IRA.

                                       3


The Main Risks of Investing in the Fund

There are several risk factors that could hurt the fund's performance, cause you
to lose money or make the fund perform less well than other investments.

Market Risk. Although individual stocks can outperform their local markets,
deteriorating market conditions might cause an overall weakness in the stock
prices of the entire market.

Security Selection Risk. A risk that pervades all investing is the risk that the
securities in the Portfolio's portfolio will decline in value. To minimize this
risk, the portfolio managers monitor each of the stocks in the Portfolio
according to three basic quantitative criteria. They subject a stock to
intensive review if:

o  its rate of price appreciation begins to trail that of its national stock
   index;

o  the financial analysts who follow the stock, both within the advisor and
   outside, cut their estimates of the stock's future earnings; or

o  the stock's price approaches the downside target the managers set when they
   first bought the stock (and may since have modified to reflect changes in
   market and economic conditions).

In this review, the managers seek to learn if the deteriorating performance
accurately reflects deteriorating prospects or if, in their view, it merely
reflects investor overreaction to temporary circumstances.

Foreign Stock Market Risk. From time to time, foreign capital markets have
exhibited more volatility than those in the United States. Trading stocks on
some foreign exchanges is inherently more difficult than trading in the United
States for reasons including:

o  Political Risk. Some foreign governments have limited the outflow of profits
   to investors abroad, extended diplomatic disputes to include trade and
   financial relations, and imposed high taxes on corporate profits. While these
   political risks have not occurred recently in the major countries in which
   the fund invests, we analyze countries and regions to try to anticipate these
   risks.

o  Information Risk. Financial reporting standards for companies based in
   foreign markets differ from those in the United States and may present an
   incomplete or misleading picture of a foreign company compared to US
   standards.




--------------------------------------------------------------------------------

The fund is designed for individuals who are seeking high capital appreciation
and are willing to accept the risks of investing in the stocks of foreign
companies.

                                       4


o  Liquidity Risk. Stocks that trade less can be more difficult or more costly
   to buy, or to sell, than more liquid or active stocks. This liquidity risk is
   a factor of the trading volume of a particular stock, as well as the size and
   liquidity of the entire local market. On the whole, foreign exchanges are
   smaller and less liquid than the US market. This can make buying and selling
   certain shares more difficult and costly. Relatively small transactions in
   some instances can have a disproportionately large effect on the price and
   supply of shares. In certain situations, it may become virtually impossible
   to sell a stock in an orderly fashion at a price that approaches the
   managers' estimate of its value.

o  Regulatory Risk. There is generally less government regulation of foreign
   markets, companies and securities dealers than in the US.

o  Currency Risk. The Portfolio invests in foreign securities denominated in
   foreign currencies. This creates the possibility that changes in foreign
   exchange rates will affect the value of foreign securities or the US dollar
   amount of income or gain received on these securities. The portfolio managers
   seek to minimize this risk by actively managing the currency exposure of the
   Portfolio.

In an effort to reduce these foreign stock market risks, the portfolio managers
diversify the fund's investments, just as you may spread your investments among
a range of securities so that a setback in one need not overwhelm your entire
strategy. In this way, a reversal in one market or stock need not undermine the
pursuit of long-term capital appreciation.

Emerging Market Risk. To the extent that the Portfolio does invest in emerging
markets to enhance overall returns, it may face higher political, information,
and stock market risks. In addition, profound social changes and business
practices that depart from norms in developed countries' economies have hindered
the orderly growth of emerging economies and their stock markets in the past.
High levels of debt tend to make emerging economies heavily reliant on foreign
capital and vulnerable to capital flight. For all these reasons, the portfolio
managers carefully limit and balance the Portfolio's commitment to these
markets.

                                       5


Derivative Risk. Derivatives may be more volatile and less liquid than
traditional securities. Risks associated with derivatives include:

o  the derivative may not fully offset the underlying positions;

o  the derivatives used for risk management may not have the intended effects
   and may result in losses or missed opportunities;

o  the possibility the Portfolio cannot sell the derivative because of an
   illiquid secondary market; and

o  the risk that the derivatives transaction could expose the fund to the effect
   of leverage, which could increase the fund's exposure to the market and
   potential losses that it could have if it had not entered into these
   transactions. There is no guarantee that these derivatives activities will be
   employed or that they will work, and their use could cause lower returns or
   even losses to the fund.






               Please Retain This Supplement for Future Reference










July 17, 2003




                                                                     SCUDDER
                                                                     INVESTMENTS


Scudder International Equity Fund

Investment Class

Supplement to the Prospectus dated February 28, 2003, as supplemented from time
to time.

--------------------------------------------------------------------------------

The following information replaces the text on pages 4 to 8 of the prospectus.


The Fund's Main Investment Strategy

The fund seeks long-term capital appreciation. The fund is a feeder fund in a
master/feeder arrangement. The fund pursues its investment objective by
investing substantially all of its assets in a master portfolio, the
International Equity Portfolio (the "Portfolio"), a separate mutual fund which
has the same investment objective and policies as the fund. Under normal
circumstances, the fund, through the Portfolio, invests at least 80% of its
assets, determined at the time of purchase, in the stocks and other securities
with equity characteristics of companies in developed countries outside the
United States. The Portfolio invests for capital appreciation, not income; any
dividend or interest income is incidental to the pursuit of that goal.

Almost all the companies in which the Portfolio invests are based in the
developed foreign countries that make up the MSCI EAFER Index, plus Canada. The
Portfolio may also invest a portion of its assets in companies based in the
emerging markets of Latin America, the Middle East, Europe, Asia and Africa if
the portfolio managers believe that their return potential more than compensates
for the extra risks associated with these markets. While the managers have
invested in emerging markets in the past, under normal market conditions they do
not consider this a central element of the Portfolio's strategy. Typically, the
Portfolio would not hold more than 15% of its net assets in emerging markets. In
implementing this overall strategy, the Portfolio may experience a high
portfolio turnover rate.



The Portfolio invests for the long term. The portfolio managers employ a
strategy of growth at a reasonable price. The managers seek to identify
companies outside the United States that combine strong potential for earnings
growth with reasonable investment value. Such companies typically exhibit
increasing rates of profitability and cash flow, yet their share prices compare
favorably to other stocks in a given market and to their global peers. In
evaluating stocks, the managers consider factors such as sales, earnings, cash
flow and enterprise value. Enterprise value is a company's market capitalization
plus the value of its net debt. The managers further consider the relationship
between these and other quantitative factors. Together, these indicators of
growth and value may identify companies with improving prospects before the
market in general has taken notice.

Company research lies at the heart of the portfolio managers' investment
process, as it does with many stock mutual funds. The portfolio managers track
several thousand companies to arrive at the approximately 100 stocks the fund
normally holds. But the portfolio managers' process brings an added dimension to
this fundamental research. They draw on the insight of experts from a range of
financial disciplines -- regional stock market specialists, global industry
specialists, economists and quantitative analysts. They challenge, refine and
amplify each other's ideas. Their close collaboration is a critical element of
the portfolio managers' investment process.

                                       2


The Portfolio may invest in various instruments commonly known as "derivatives"
to increase or decrease its exposure to an asset class, securities market, index
or currency. The Portfolio will primarily use futures, options, options on
futures, forward currency transactions and swaps. The portfolio managers may use
derivatives in circumstances when the portfolio managers believe the derivatives
offer an economical means of gaining exposure to a particular asset class,
securities market, index or currency. The Portfolio may also invest in
derivatives to gain exposure to the market while, at the same time, maintaining
a high degree of liquidity in order to meet shareholder redemptions or other
needs. Use of some derivatives may have the effect of leveraging the Portfolio's
exposure to a particular asset class or other investment, which heightens risk
but may also allow for enhanced returns. In implementing this strategy, the
Portfolio may experience a high portfolio turnover rate.











--------------------------------------------------------------------------------

Futures, options and options on futures contracts are used as a low-cost method
for gaining exposure to a particular securities market or index without
investing directly in those securities.

Forward currency transactions are the purchase or sale of a foreign currency at
an exchange rate established now, but with payment and delivery at a specified
future time. Forward currency transactions may be used in an attempt to hedge
against losses, or, where possible, to add to investment returns.

A swap is a transaction where one security or characteristic of a security is
swapped for another.

Portfolio Turnover. The portfolio turnover rate measures the frequency that the
Portfolio sells and replaces the securities it holds within a given period.
Recently, the Portfolio has had a high portfolio turnover rate. High turnover
can increase the Portfolio's transaction costs, thereby lowering its returns. It
may also increase your tax liability if you do not hold the fund in a
tax-advantaged account such as an IRA.

                                       3


The Main Risks of Investing in the Fund

There are several risk factors that could hurt the fund's performance, cause you
to lose money or make the fund perform less well than other investments.

Market Risk. Although individual stocks can outperform their local markets,
deteriorating market conditions might cause an overall weakness in the stock
prices of the entire market.

Security Selection Risk. A risk that pervades all investing is the risk that the
securities in the Portfolio's portfolio will decline in value. To minimize this
risk, the portfolio managers monitor each of the stocks in the Portfolio
according to three basic quantitative criteria. They subject a stock to
intensive review if:

o  its rate of price appreciation begins to trail that of its national stock
   index;

o  the financial analysts who follow the stock, both within the advisor and
   outside, cut their estimates of the stock's future earnings; or

o  the stock's price approaches the downside target the managers set when they
   first bought the stock (and may since have modified to reflect changes in
   market and economic conditions).

In this review, the managers seek to learn if the deteriorating performance
accurately reflects deteriorating prospects or if, in their view, it merely
reflects investor overreaction to temporary circumstances.

Foreign Stock Market Risk. From time to time, foreign capital markets have
exhibited more volatility than those in the United States. Trading stocks on
some foreign exchanges is inherently more difficult than trading in the United
States for reasons including:

o  Political Risk. Some foreign governments have limited the outflow of profits
   to investors abroad, extended diplomatic disputes to include trade and
   financial relations, and imposed high taxes on corporate profits. While these
   political risks have not occurred recently in the major countries in which
   the fund invests, we analyze countries and regions to try to anticipate these
   risks.

o  Information Risk. Financial reporting standards for companies based in
   foreign markets differ from those in the United States and may present an
   incomplete or misleading picture of a foreign company compared to US
   standards.



--------------------------------------------------------------------------------

The fund is designed for individuals who are seeking high capital appreciation
and are willing to accept the risks of investing in the stocks of foreign
companies.

                                       4


o  Liquidity Risk. Stocks that trade less can be more difficult or more costly
   to buy, or to sell, than more liquid or active stocks. This liquidity risk is
   a factor of the trading volume of a particular stock, as well as the size and
   liquidity of the entire local market. On the whole, foreign exchanges are
   smaller and less liquid than the US market. This can make buying and selling
   certain shares more difficult and costly. Relatively small transactions in
   some instances can have a disproportionately large effect on the price and
   supply of shares. In certain situations, it may become virtually impossible
   to sell a stock in an orderly fashion at a price that approaches the
   manager's estimate of its value.

o  Regulatory Risk. There is generally less government regulation of foreign
   markets, companies and securities dealers than in the US.

o  Currency Risk. The Portfolio invests in foreign securities denominated in
   foreign currencies. This creates the possibility that changes in foreign
   exchange rates will affect the value of foreign securities or the US dollar
   amount of income or gain received on these securities. The portfolio managers
   seek to minimize this risk by actively managing the currency exposure of the
   Portfolio.

In an effort to reduce these foreign stock market risks, the portfolio managers
diversify the fund's investments, just as you may spread your investments among
a range of securities so that a setback in one need not overwhelm your entire
strategy. In this way, a reversal in one market or stock need not undermine the
pursuit of long-term capital appreciation.

Emerging Market Risk. To the extent that the Portfolio does invest in emerging
markets to enhance overall returns, it may face higher political, information,
and stock market risks. In addition, profound social changes and business
practices that depart from norms in developed countries' economies have hindered
the orderly growth of emerging economies and their stock markets in the past.
High levels of debt tend to make emerging economies heavily reliant on foreign
capital and vulnerable to capital flight. For all these reasons, the portfolio
managers carefully limit and balance the Portfolio's commitment to these
markets.

                                       5


Derivative Risk. Derivatives may be more volatile and less liquid than
traditional securities. Risks associated with derivatives include:

o  the derivative may not fully offset the underlying positions;

o  the derivatives used for risk management may not have the intended effects
   and may result in losses or missed opportunities;

o  the possibility the Portfolio cannot sell the derivative because of an
   illiquid secondary market; and

o  the risk that the derivatives transaction could expose the fund to the effect
   of leverage, which could increase the fund's exposure to the market and
   potential losses that it could have if it had not entered into these
   transactions. There is no guarantee that these derivatives activities will be
   employed or that they will work, and their use could cause lower returns or
   even losses to the fund.



               Please Retain This Supplement for Future Reference










July 17, 2003



                                                      [Scudder Investments Logo]


Supplement to the Statement of Additional Information dated February 28, 2003,
as amended through April 14, 2003, and as supplemented from time to time, of
Scudder International Equity Fund

--------------------------------------------------------------------------------

The following replaces the first paragraph of the "Currency Management"
sub-section of the "Investment Objectives, Policies and Restrictions" section.


General. In connection with the Portfolio's investments denominated in foreign
currencies, the subadvisor may choose to utilize a variety of currency
management strategies. The subadvisor may use currency hedging techniques in the
normal course of business to lock in an exchange rate in connection with
purchases and sales of securities denominated in foreign currencies. Other
currency management strategies allow the subadvisor to hedge portfolio
securities, to shift investment exposure from one currency to another, or to
attempt to profit from anticipated declines in the value of a foreign currency
relative to the US dollar. There is no overall limitation on the amount of
assets that the Portfolio may commit to currency management strategies. In doing
so, the subadvisor will consider such factors as the outlook for currency
relationships; current and anticipated interest rates; levels of inflation
within various countries; prospects for relative economic growth; and government
policies influencing currency exchange rates and business conditions. Although
the subadvisor may attempt to manage currency exchange rate risks, there is no
assurance that the subadvisor will do so, or do so at an appropriate time or
that the subadvisor will be able to predict exchange rates accurately.

The following is inserted as the second paragraph of the "Currency Management"
sub-section of the "Investment Objectives, Policies and Restrictions" section.

Currency Management Strategy Risks. The use of currency management strategies
for non-hedging purposes may result in leverage, which tends to magnify the
effects of an instrument's price changes as market conditions change. Leverage
involves the use of a small amount of money to control a large amount of
financial assets, and can in some circumstances, lead to significant losses. The
use of currency management strategies for non-hedging purposes may be considered
speculative.




               Please Retain This Supplement for Future Reference




July 17, 2003