-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JzxWujrF79HxK9ng70M6slU18koKNRu68/G/jgfwaZJ2PfTgKhsc/ajVkBE+YPWK HHqi1OhIRLfDU96P6mFatg== 0000088053-01-500195.txt : 20010530 0000088053-01-500195.hdr.sgml : 20010530 ACCESSION NUMBER: 0000088053-01-500195 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20010529 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KEMPER BLUE CHIP FUND CENTRAL INDEX KEY: 0000823342 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 363542349 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 497 SEC ACT: SEC FILE NUMBER: 033-17777 FILM NUMBER: 1649574 BUSINESS ADDRESS: STREET 1: 222 SOUTH RIVERSIDE PLAZA CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3125371569 MAIL ADDRESS: STREET 1: 222 SOUTH RIVERSIDE PLAZA CITY: CHICAGO STATE: IL ZIP: 60606 497 1 st-abc052901.txt SUPPLEMENT TO EFFECTIVE SAI Supplement to currently effective Statement of Additional Information of each of the listed funds:
Asset Allocation Global/Income Income - ---------------- ------------- ------ Scudder Pathway Series: Conservative Scudder Global Bond Fund, Class A,B,C Scudder High-Yield Fund (formerly Portfolio, Class A,B,C Scudder Emerging Markets Income Kemper High-Yield Fund), Class Scudder Pathway Series: Growth Portfolio, Fund, Class A,B,C A,B,C,I Class A,B,C Scudder High-Yield Opportunity Scudder Pathway Series: Moderate Global/ International Fund, Class A,B,C Portfolio, Class A,B,C --------------------- Scudder Income Fund, Class A,B,C Scudder Emerging Markets Growth Scudder Short Term Bond Fund, Bank Loan Fund Fund, Class A,B,C Class A,B,C - -------------- Scudder Global Discovery Fund Scudder Strategic Income Fund Scudder Floating Rate Fund (formerly Kemper (formerly also known as Kemper (formerly Kemper Strategic Income Floating Rate Fund), Class A,B,C Global Discovery Fund), Class A,B,C Fund), Class A,B,C,I Scudder International Research Fund Scudder U.S. Government Securities Core Global/International (formerly Kemper International Fund (formerly Kemper U.S. - ------------------------- Research Fund), Class A,B,C Government Securities Fund), Class Scudder Global Fund, Class A,B,C A,B,C,I Scudder International Fund, Class A,B,C,I Growth/Aggressive Growth ------------------------ Money Funds Core/Index Scudder 21st Century Growth Fund, ----------- - ---------- Class A,B,C Scudder Cash Reserves Fund Scudder S&P 500 Stock Fund (formerly Kemper Scudder Aggressive Growth Fund (formerly Kemper Cash Reserves S&P 500 Index Fund), Class A,B,C (formerly Kemper Aggressive Growth Fund), Class A,B,C,I Fund), Class A,B,C,I Zurich Government Money Fund Core/Large Cap Scudder Small Capitalization Equity Zurich Money Market Fund - -------------- Fund (formerly Kemper Small Zurich Tax-Free Money Fund Scudder Blue Chip Fund (formerly Kemper Capitalization Equity Fund), Class Zurich YieldWise Government Money Blue Chip Fund), Class A,B,C,I A,B,C,I Fund Scudder Focus Value+Growth Fund (formerly Scudder Small Company Stock Fund, Zurich YieldWise Money Fund Kemper Value+Growth Fund), Class A,B,C,I Class A,B,C Zurich YieldWise Municipal Money Scudder Growth and Income Fund, Class A,B,C Fund Scudder Research Fund (formerly Kemper Growth/Large Cap Research Fund), Class A,B,C ---------------- National Tax-Free Income Scudder Total Return Fund (formerly Kemper Scudder Capital Growth Fund, Class ------------------------ Total Return Fund), Class A,B,C,I A,B,C, I Scudder High-Yield Tax-Free Fund, Scudder Focus Growth Fund (formerly Class A,B,C Core/Target Equity Kemper Large Company Growth Fund), Scudder Managed Municipal Bonds, - ------------------ Class A,B,C Class A,B,C Scudder Retirement Fund-Series III Scudder Growth Fund (formerly Kemper Scudder Medium Term Tax-Free Fund, (formerly Kemper Retirement Fund Series III) Growth Fund), Class A,B,C,I Class A,B,C Scudder Retirement Fund-Series IV (formerly Scudder Large Company Growth Fund, Kemper Retirement Fund Series IV) Class A,B,C,I Regional /International Scudder Retirement Fund-Series V (formerly ----------------------- Kemper Retirement Fund Series V) Scudder Greater Europe Growth Scudder Retirement Fund-Series VI (formerly Fund, Class A,B,C Kemper Retirement Fund Series VI) Scudder Latin America Fund, Class Scudder Retirement Fund-Series VII A,B,C (formerly Kemper Retirement Fund Series VII) Scudder New Europe Fund (formerly Scudder Target 2010 Fund (formerly Kemper Kemper New Europe Fund), Class Target 2010 Fund) A,B,C Scudder Target 2011 Fund (formerly Kemper Scudder Pacific Opportunities Target 2011 Fund) Fund, Class A,B,C Scudder Worldwide 2004 Fund (formerly Kemper Worldwide 2004 Fund) (cont. on next page) Sector Select Equity Value - ------ ------------- ----- Scudder-Dreman Financial Services Fund Scudder Select 500 Fund, Class A,B,C Scudder Contrarian Fund (formerly (formerly Kemper-Dreman Financial Services Scudder Select 1000 Growth Fund, Kemper Contrarian Fund), Class Fund), Class A,B,C Class A,B,C A,B,C, I Scudder Gold Fund, Class A,B,C Scudder Dividend & Growth Fund, Scudder Health Care Fund, Class A,B,C,I State Tax-Free Income Class A,B,C Scudder Technology Fund (formerly Kemper --------------------- Scudder-Dreman High Return Equity Technology Fund), Class A,B,C,I Scudder California Tax-Free Income Fund (formerly Kemper-Dreman High Scudder Technology Innovation Fund, Class Fund (formerly Kemper California Return Equity Fund), Class A,B,C,I A,B,C Tax-Free Income Fund), Class A,B,C Scudder Large Company Value Fund, Scudder Florida Tax-Free Income Fund Class A,B,C,I (formerly Kemper Florida Tax-Free Scudder Small Cap Value Fund Income Fund), Class A,B,C (formerly Kemper Small Cap Value Scudder Massachusetts Tax-Free Fund, Fund), Class A,B,C,I Class A,B,C Scudder New York Tax-Free Income Fund (formerly Kemper New York Tax-Free Income Fund), Class A,B,C
As you may know, the Scudder Funds and Kemper Funds, which are both managed by Zurich Scudder Investments, Inc. ("Zurich Scudder") (formerly Scudder Kemper Investments, Inc.), have recently undergone a restructuring program to reorganize and combine the two fund families in response to changing industry conditions and investor needs in order to create one streamlined, multi-class family of funds under the Scudder brand. This supplement reflects the changes to the statements of additional information for the funds listed above (the "Funds") as a result of this restructuring: Investment Restrictions The following information replaces fundamental investment restriction number 3 under the heading "Investment Restrictions" for Scudder Cash Reserves Fund only: The Fund may not, as a fundamental policy: 3. Concentrate its investments in a particular industry, as that term is used in the Investment Company Act of 1940, as amended, and as interpreted or modified by regulatory authority having jurisdiction, from time to time, except that the Fund reserves the freedom of action to concentrate in government securities and instruments issued by domestic banks. Trustees/Directors In connection with the restructuring efforts of Zurich Scudder, shareholders of certain of the Funds are being asked to approve a new slate of Trustees/Directors. Pending shareholder approval, effective July 1, 2001, the following are the members of the Boards 2 of Trustees/Directors for the above-referenced former "Kemper" Funds, except Scudder Global Discovery Fund, and the Funds listed under "Money Funds":
- ---------------------------- ------------- --------------------------------------- -------------------------- Name, Age and Address Position Principal Occupation Position with with the Underwriter, Scudder Fund* Distributors, Inc. - ---------------------------- ------------- --------------------------------------- -------------------------- John W. Ballantine, 55 Trustee Retired; formerly, First Chicago NBD -- 222 South Riverside Plaza Corporation/The First National Bank Chicago, IL 60606 of Chicago: 1996-1998, Executive Vice President and Chief Risk Management Officer; 1995-1996, Executive Vice President and Head of International Banking; Director, First Oak Brook Bancshares, Inc., Oak Brook Bank and Tokheim Corporation. - ---------------------------- ------------- --------------------------------------- -------------------------- Lewis A. Burnham, 68 Trustee Retired; formerly, Partner, Business -- 222 South Riverside Plaza Resources Group; formerly, Executive Chicago, IL 60606 Vice President, Anchor Glass Container Corporation. - ---------------------------- ------------- --------------------------------------- -------------------------- Mark S. Casady, 40** Trustee Managing Director, Zurich Scudder Director and Chairman Two International Place Investments, Inc., formerly, Boston, MA 02109 Institutional Sales Manager of an unaffiliated mutual fund distributor. - ---------------------------- ------------- --------------------------------------- -------------------------- Linda C. Coughlin, 49** Trustee Managing Director, Zurich Scudder Director and Vice Two International Place Investments, Inc. Chairman Boston, MA 02109 - ---------------------------- ------------- --------------------------------------- -------------------------- Donald L. Dunaway, 64 Trustee Retired; formerly, Executive Vice -- 222 South Riverside Plaza President, A.O. Smith Corporation Chicago, IL 60606 (diversified manufacturer). - ---------------------------- ------------- --------------------------------------- -------------------------- James R. Edgar, 54 Trustee Distinguished Fellow, University of -- 222 South Riverside Plaza Illinois Institute of Government and Chicago, IL 60606 Public Affairs; Director, Kemper Insurance Companies (not affiliated with the Kemper Funds); Director, John B. Sanfilippo & Son, Inc.; Director, Horizon Group Properties, Inc.; formerly, Governor, State of Illinois. - ---------------------------- ------------- --------------------------------------- -------------------------- William F. Glavin, 42** Trustee Managing Director, Zurich Scudder Managing Director Two International Place Investments, Inc.; formerly, Boston, MA 02109 Executive Vice President of Market and Product Development, The Dreyfus Corporation. - ---------------------------- ------------- --------------------------------------- -------------------------- Robert B. Hoffman, 64 Trustee Retired; formerly, Chairman, -- 222 South Riverside Plaza Harnischfeger Industries, Inc. Chicago, IL 60606 (machinery for the mining and paper industries); formerly, Vice Chairman and Chief Financial Officer, Monsanto Company (agricultural, pharmaceutical and nutritional/food products); formerly, Vice President, Head of International Operations, FMC Corporation (manufacturer of machinery and chemicals); Director, Harnischfeger Industries, Inc. - ---------------------------- ------------- --------------------------------------- -------------------------- Shirley D. Peterson, 59 Trustee Retired; formerly, President, Hood -- 222 South Riverside Plaza College; formerly, Partner, Steptoe & Chicago, IL 60606 Johnson (attorneys); prior thereto, Commissioner, Internal Revenue Service; prior thereto, Assistant Attorney General (Tax), U.S. Department of Justice; Director, Bethlehem Steel Corp. - ---------------------------- ------------- --------------------------------------- -------------------------- Fred B. Renwick, 71 Trustee Professor of Finance, New York -- 3 - ---------------------------- ------------- --------------------------------------- -------------------------- 222 South Riverside Plaza University, Stern School of Business; Chicago, IL 60606 Director, the Wartburg Foundation; Chairman, Finance Committee of Morehouse College Board of Trustees; Director, American Bible Society Investment Committee; previously member of the Investment Committee of Atlanta University Board of Trustees; formerly, Director of Board of Pensions Evangelical Lutheran Church in America. - ---------------------------- ------------- --------------------------------------- -------------------------- William P. Sommers, 67 Trustee Retired; formerly, President and -- 222 South Riverside Plaza Chief Executive Officer, SRI Chicago, IL 60606 International (research and development); prior thereto, Executive Vice President, Iameter (medical information and educational service provider); prior thereto, Senior Vice President and Director, Booz, Allen & Hamilton Inc. (management consulting firm); Director, PSI Inc., Evergreen Solar, Inc. and Litton Industries; Advisor, Guckenheimer Enterprises; Consultant and Director, SRI/Atomic Tangerine. - ---------------------------- ------------- --------------------------------------- -------------------------- John G. Weithers, 67 Trustee Formerly, Chairman of the Board and -- 222 South Riverside Plaza Chief Executive Officer, Chicago Chicago, IL 60606 Stock Exchange; Director, Federal Life Insurance Company; President of the Members of the Corporation and Trustee, DePaul University; Director, International Federation of Stock Exchanges; Director, Records Management Systems. - ---------------------------- ------------- --------------------------------------- --------------------------
* Each of the named individuals serves as a Director of those funds organized as Maryland corporations or as a Director of the corporations of which the funds are a series, as applicable. ** Messrs. Casady and Glavin and Ms. Coughlin are considered "interested persons" of Zurich Scudder or of each Fund as defined in the Investment Company Act of 1940. Investment Advisor and Distributor Effective July 1, 2001, the following information amends the disclosure concerning the administrative services agreement for the above-referenced former "Kemper" Funds, Scudder Global Discovery Fund, Scudder 21st Century Growth Fund and Scudder High-Yield Tax-Free Fund (other disclosure regarding distribution and service fees under the Rule 12b-1 Plans continues to apply): Shareholder Services. Pursuant to the Rule 12b-1 Plan, information and administrative services are provided to each Fund on behalf of Class A^1, Class B and Class C shareholders under the Shareholder Services Agreement ("Services Agreement") with Scudder Distributors, Inc. ("SDI"). SDI bears all its expenses of providing services pursuant to the Services Agreement between SDI and a Fund, including the payment of a - -------- ^1 Each Target Equity Fund has only one outstanding class of shares. Only the discussion that relates to Class A shares applies to the shares of the Target Equity Funds. 4 services fees. Each Fund pays SDI a shareholder services fee, payable monthly, at an annual rate of up to 0.25% of average daily net assets of Class A, B and C shares of each Fund.^2 SDI enters into related arrangements with various broker-dealer firms and other service or administrative firms ("firms") that provide services and facilities for their customers or clients who are investors in a Fund. The firms provide such office space and equipment, telephone facilities and personnel as is necessary or beneficial for providing information and services to their clients. Such services and assistance may include, but are not limited to, establishing and maintaining accounts and records, processing purchase and redemption transactions, answering routine inquiries regarding a Fund, assistance to clients in changing dividend and investment options, account designations and addresses and such other administrative services as may be agreed upon from time to time and permitted by applicable statute, rule or regulation. With respect to Class A shares, SDI pays each firm a service fee, payable quarterly, at an annual rate of up to 0.25% of the net assets in Fund accounts that it maintains and services attributable to Class A shares, commencing with the month after investment. With respect to Class B and Class C shares, SDI currently advances to firms the first-year service fee at a rate of up to 0.25% of the purchase price of such Shares. For periods after the first year, SDI currently intends to pay firms a service fee at a rate of up to 0.25% (calculated monthly and paid quarterly) of the net assets attributable to Class B and Class C shares maintained and serviced by the firm. After the first year, a firm becomes eligible for the quarterly service fee and the fee continues until terminated by SDI or a Fund. Firms to which service fees may be paid include affiliates of SDI. In addition SDI may, from time to time, from its own resources pay certain firms additional amounts for ongoing administrative services and assistance provided to their customers and clients who are shareholders of a Fund. SDI also may provide some of the above services and may retain any portion of the fee under the Services Agreement not paid to firms to compensate itself for administrative functions performed for a Fund. Currently, the services fee payable to SDI is payable at an annual rate of 0.25% based upon Fund assets in accounts for which a firm provides shareholder or administrative services and at the annual rate of 0.15% based upon Fund assets in accounts for which there is no firm of record (other than SDI) listed on a Fund's records. The effective shareholder or administrative services fee rate to be charged against all assets of each Fund while this procedure is in effect will depend upon the proportion of Fund assets that is in accounts for which a firm of record provides shareholder or administrative services. The Board of each Fund, in its discretion, may approve basing the fee payable to SDI at the annual rate of 0.25% on all Fund assets in the future. - -------- ^2 Pending shareholder approval, each class's current shareholder services fee will be authorized for payment under a Rule 12b-1 Plan. This supplement assumes that shareholders approved each Plan. If shareholders do not approve the Plan, the current fee structure will remain in effect. Scudder Floating Rate Fund will implement a Rule 12b-1 Plan even though the Fund, as a closed-end fund, is not subject to the provisions of Rule 12b-1 under the Investment Company Act of 1940. That Fund's current plan of distribution for Class B and Class C shares contains provisions that are consistent with the requirements of Rule 12b-1 and the new distribution plans also contain provisions that are consistent with the requirements of that Rule. 5 Certain Trustees/Directors or officers of the Funds are also directors or officers of the Advisor or SDI. Scudder Global Bond Fund, Scudder Income Fund, Scudder Managed Municipal Bonds, Scudder Medium Term Tax-Free Fund, Scudder Pacific Opportunities Fund, Scudder High-Yield Opportunity Fund and Scudder Large Company Value Fund adopted new management fee rate schedules. The new fee rate schedules and the effective dates are set forth below:
- ---------------- ------------------- ------------------- ------------------ ------------------- ------------------- Scudder Global Scudder Income Scudder Managed Scudder Medium Scudder Pacific Bond Fund Fund Municipal Bonds Term Tax-Free Fund Opportunities Fund - ---------------- ------------------- ------------------- ------------------ ------------------- ------------------- Effective Date June 18, 2001 June 25, 2001 June 11, 2001 June 11, 2001 May 29, 2001 - ---------------- ------------------- ------------------- ------------------ ------------------- ------------------- First $250 0.750% 0.550% 0.450% 0.550% 0.850% million - ---------------- ------------------- ------------------- ------------------ ------------------- ------------------- Next $750 0.720% 0.520% 0.430% 0.520% 0.820% million - ---------------- ------------------- ------------------- ------------------ ------------------- ------------------- Next $1.5 0.700% 0.500% 0.410% 0.490% 0.800% billion - ---------------- ------------------- ------------------- ------------------ ------------------- ------------------- Next $2.5 0.680% 0.480% 0.400% 0.470% 0.780% billion - ---------------- ------------------- ------------------- ------------------ ------------------- ------------------- Next $2.5 0.650% 0.450% 0.380% 0.450% 0.750% billion - ---------------- ------------------- ------------------- ------------------ ------------------- ------------------- Next $2.5 0.640% 0.430% 0.360% 0.430% 0.740% billion - ---------------- ------------------- ------------------- ------------------ ------------------- ------------------- Next $2.5 0.630% 0.410% 0.340% 0.410% 0.730% billion - ---------------- ------------------- ------------------- ------------------ ------------------- ------------------- Over $12.5 0.620% 0.400% 0.320% 0.400% 0.720% billion - ---------------- ------------------- ------------------- ------------------ ------------------- -------------------
--------------------------- -------------------------- Scudder High-Yield Opportunity Fund --------------------------- -------------------------- Effective Date June 25, 2001 --------------------------- -------------------------- First $500 million 0.600% --------------------------- -------------------------- Next $500 million 0.575% --------------------------- -------------------------- Next $500 million 0.550% --------------------------- -------------------------- Next $500 million 0.525% --------------------------- -------------------------- Next $1 billion 0.500% --------------------------- -------------------------- Over $3 billion 0.475% --------------------------- -------------------------- 6 --------------------------- -------------------------- Scudder Large Company Value Fund --------------------------- -------------------------- Effective Date February 6, 2001 --------------------------- -------------------------- First 1.5 billion 0.600% --------------------------- -------------------------- Next $500 million 0.575% --------------------------- -------------------------- Next $1 billion 0.550% --------------------------- -------------------------- Next $1 billion 0.525% --------------------------- -------------------------- Next $1 billion 0.500% --------------------------- -------------------------- Over $5 billion 0.475% --------------------------- -------------------------- Effective on the dates specified in the chart below, the following information is added for the above-referenced former "Kemper" Funds (except Scudder Cash Reserves Fund), Scudder High-Yield Tax-Free Fund and Scudder 21st Century Growth Fund: Administrative Fee. The Fund has entered into an administrative services agreement with Zurich Scudder (the "Administration Agreement"), pursuant to which Zurich Scudder will provide or pay others to provide substantially all of the administrative services required by the Fund (other than those provided by Zurich Scudder under its investment management agreement with the Fund, as described above) in exchange for the payment by the Fund of an annual administrative services fee (the "Administrative Fee") in the amount listed in the chart below. One effect of this arrangement is to make the Fund's future expense ratio more predictable. However, the Fund will not benefit from economies of scale derived from increases in assets. Various service providers (the "Service Providers"), some of which are affiliated with Zurich Scudder, provide certain services to the Fund pursuant to separate agreements. Zurich Scudder will pay the Service Providers for the provision of their services to the Fund and will pay most other Fund expenses, including insurance, registration, printing and postage fees. In return, the Fund will pay Zurich Scudder the Administrative Fee. The Administration Agreement has an initial term of three years ending September 30, 2003, subject to earlier termination by the Fund's Board. The Administration Agreement shall continue in effect on an annual basis after September 30, 2003, provided that such continuance is approved at least annually by a majority of the trustees/directors, including the Independent Trustees/Directors. The fee payable by the Fund to Zurich Scudder pursuant to the Administration Agreement is reduced by the amount of any credit received from the Fund's custodian for cash balances. Certain expenses of the Fund will not be borne by Zurich Scudder under the Administration Agreement, such as taxes, brokerage, interest and extraordinary expenses; and the fees and expenses of the Independent Trustees/Directors (including the fees and expenses of their independent counsel). In addition, the Fund will continue to pay the fees required by its investment management agreement with Zurich Scudder. 7
- ------------------------------------- ----------------------------------- ----------------------------------- Fund Administrative Fee Rate+ Effective Date - ------------------------------------- ----------------------------------- ----------------------------------- Bank Loan Fund - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Floating Rate Fund .225% for Class A June 25, 2001 .275% for Class B .250% for Class C - ------------------------------------- ----------------------------------- ----------------------------------- Core/Index - ------------------------------------- ----------------------------------- ----------------------------------- Scudder S&P 500 Stock Fund .350% for Class A June 18, 2001 .400% for Class B .375% for Class C - ------------------------------------- ----------------------------------- ----------------------------------- Core/Large Cap - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Blue Chip Fund .325% for Class A June 11, 2001 .375% for Class B .350% for Class C .100% for Class I - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Total Return Fund .225% for Class A June 11, 2001 .375% for Class B .300% for Class C .100% for Class I - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Focus Value+Growth Fund .325% for Class A June 11, 2001 .375% for Class B .350% for Class C .100% for Class I - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Research Fund .325% for Class A June 11, 2001 .375% for Class B .350% for Class C - ------------------------------------- ----------------------------------- ----------------------------------- Global/International - ------------------------------------- ----------------------------------- ----------------------------------- Scudder International Research Fund .400% for Class A May 29, 2001 .450% for Class B .425% for Class C - ------------------------------------- ----------------------------------- ----------------------------------- Growth/Aggressive - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Aggressive Growth Fund .475% for Class A June 25, 2001 .525% for Class B .500% for Class C - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Small Capitalization Equity .375% for Class A; June 25, 2001 Fund temporary waiver of .015%) .525% for Class B .425% for Class C .100% for Class I - ------------------------------------- ----------------------------------- ----------------------------------- Scudder 21st Century Growth .475% for Class A December 29, 2000 - ------------------------------------- ----------------------------------- ----------------------------------- 8 - ------------------------------------- ----------------------------------- ----------------------------------- Fund .525% for Class B .500% for Class C - ------------------------------------- ----------------------------------- ----------------------------------- Growth/Large Cap - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Growth Fund .225% for Class A June 25, 2001 .375% for Class B .325% for Class C .100% for Class I - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Focus Growth Fund .325% for Class A June 25, 2001 .375% for Class B .350% for Class C - ------------------------------------- ----------------------------------- ----------------------------------- Income - ------------------------------------- ----------------------------------- ----------------------------------- Scudder High-Yield Fund .200% for Class A May 29, 2001 .275% for Class B .275% for Class C .100% for Class I - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Strategic Income Fund .325% for Class A May 29, 2001 .375% for Class B .200% for Class C - ------------------------------------- ----------------------------------- ----------------------------------- Scudder U.S. Government Securities .200% for Class A May 29, 2001 Fund (temporary waiver of .004%) .250% for Class B .175% for Class C .100% for Class I - ------------------------------------- ----------------------------------- ----------------------------------- National Tax-Free Income - ------------------------------------- ----------------------------------- ----------------------------------- Scudder High-Yield Tax-Free Fund .175% for Class A December 29, 2000 .225% for Class B .200% for Class C - ------------------------------------- ----------------------------------- ----------------------------------- Regional /International - ------------------------------------- ----------------------------------- ----------------------------------- Scudder New Europe Fund .400% for Class A May 29, 2001 .450% for Class B .425% for Class C - ------------------------------------- ----------------------------------- ----------------------------------- Sector - ------------------------------------- ----------------------------------- ----------------------------------- Scudder-Dreman Financial Services .350% for Class A June 25, 2001 Fund .400% for Class B .375% for Class C - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Technology Fund .225% for Class A June 25, 2001 .425% for Class B .325% for Class C .100% for Class I - ------------------------------------- ----------------------------------- ----------------------------------- 9 - ------------------------------------- ----------------------------------- ----------------------------------- State Tax-Free Income - ------------------------------------- ----------------------------------- ----------------------------------- Scudder California Tax-Free Income .075 % for Class A June 18, 2001 Fund .125% for Class B .175% for Class C - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Florida Tax-Free Income Fund .100% for Class A June 18, 2001 .150% for Class B .125% for Class C - ------------------------------------- ----------------------------------- ----------------------------------- Fund .175% for Class B .150% for Class C - ------------------------------------- ----------------------------------- ----------------------------------- Value - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Contrarian Fund .325% for Class A May 29, 2001 .375% for Class B .350% for Class C .100% for Class I - ------------------------------------- ----------------------------------- ----------------------------------- Scudder-Dreman High Return Equity .350% for Class A May 29, 2001 Fund (temporary waiver of .007%) .400% for Class B .375% for Class C .100% for Class I - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Small Cap Value Fund .475% for Class A May 29, 2001 .525% for Class B .500% for Class C .100% for Class I - ------------------------------------- ----------------------------------- ----------------------------------- Target Equity - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Retirement Fund-Series III .200% June 25, 2001 - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Retirement Fund-Series IV .200% June 25, 2001 - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Retirement Fund-Series V .200% June 25, 2001 - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Retirement Fund-Series VI .200% June 25, 2001 - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Retirement Fund-Series VII .200% June 25, 2001 - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Target 2010 Fund .200% June 25, 2001 - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Target 2011 Fund .200% June 25, 2001 - ------------------------------------- ----------------------------------- ----------------------------------- Scudder Worldwide 2004 Fund .375% June 25, 2001 - ------------------------------------- ----------------------------------- -----------------------------------
+ Certain of the funds have adopted "temporary" waivers from the contractual administrative fee rate which are in effect for 12 months following the effective date indicated above. 10 Purchase, Exchange and Redemption of Shares Effective July 1, 2001, the following information amends information provided in the subsection entitled "Alternative Purchase Arrangements" under the heading "Purchase of Shares" for the above-referenced former "Kemper" funds, Scudder Global Discovery Fund, Scudder 21st Century Growth Fund, Scudder High-Yield Tax-Free Fund: Class A shares are sold subject to an annual Rule 12b-1/shareholder services fee of 0.25%. Class B shares are sold subject to an annual Rule 12b-1/shareholder services fee of 1.00%. Class C shares are sold subject to an annual Rule 12b-1/shareholder services fee of 1.00%. That portion of the Rule 12b-1/shareholder services fee for each of Class A, Class B and Class C attributable to shareholder services is 0.25%. The minimum initial investment for each of Class A, Class B and Class C of the Fund is $1,000 and the minimum subsequent investment is $50. The minimum initial investment for an Individual Retirement Account is $500 and the minimum subsequent investment is $50. Under an automatic investment plan, such as Direct Deposit, the minimum initial and subsequent investment is $50. These minimum amounts may be changed at any time in management's discretion. The Fund may waive the minimum for purchases by trustees, directors, officers or employees of the Fund or the Advisor and its affiliates. Each of the Funds has adopted the following policy that replaces information contained under the heading "Purchase of Shares": Due to the desire of the Trust's/Corporation's management to afford ease of redemption, certificates will not be issued to indicate ownership in the Funds. Share certificates now in a shareholder's possession may be sent to the Transfer Agent for cancellation and credit to such shareholder's account. Shareholders who currently hold certificates may hold the certificates in their possession until they wish to exchange or redeem such shares. Each of the Funds, except the Zurich Money Funds and Zurich YieldWise Money Funds, has adopted the following policies relating to buying, exchanging and selling shares for their respective classes indicated below: o The minimum initial investment amount for IRA accounts is $500. (Class A,B,C only) o The minimum additional investment amount for regular accounts, IRA accounts and wire purchases is $50. (All classes) o There is a $50 minimum for exchanges between existing accounts. (All classes) 11 o There is a $50 minimum and $250,000 maximum for Quick Buy/Quick Sell (formerly "EXPRESS-Transfer") (In addition, your bank will need to have Automated Clearinghouse (ACH) services for you to take advantage of this feature). (All classes) o Go to scudder.com to get up-to-date information, review balances or even place orders for exchanges. (All classes) o If the proceeds of a redemption (prior to the imposition of any contingent deferred sales charge) are $100,000 or less and the proceeds are payable to the shareholder of record at the address of record, normally a telephone request or a written request by any one account holder without a signature guarantee is sufficient for redemptions by individual or joint account holders, and trust, executor or guardian account holders (excluding custodial accounts for gifts and transfers to minors), provided the trustee, executor or guardian is named in the account registration. (All classes) o The privilege of redeeming shares by telephone request or by written request without a signature guarantee may not be used to redeem shares held in certificated form and may not be used if the shareholder's account has had an address change within 15 days of the redemption request. (All classes) o The Fund will reinvest dividend checks (and future dividends) in shares of the same Fund and class if checks are returned by the post office as undeliverable. (All classes) Dividends, Distributions and Taxes The following information amends similar information relating to dividends for Scudder GNMA Fund, Scudder High-Yield Opportunity Fund, Scudder Income Fund and Scudder Short Term Bond Fund: Income will be declared and paid monthly. The following information amends similar information relating to dividends for all Taxable Income Funds and all State and National Tax-Free Income Funds: Effective July 1, 2001, all wires received will begin to accrue dividends the next business day after your purchase is processed. 12 Service Providers The following information amends similar information relating to service providers for all of the Funds: The names of the Funds' advisor, principal underwriter and distributor and shareholder services agent have changed from Scudder Kemper Investments, Inc., Kemper Distributors, Inc. and Kemper Service Company to Zurich Scudder Investments, Inc., Scudder Distributors, Inc. and Scudder Investments Service Company, respectively. Fund Organization The following chart reflects name changes of the relevant trust or corporation for the above-referenced former "Kemper" Funds:
- --------------------------- ---------------------------- ------------------------- -------------------------- Fund Former Trust/Corporation New Trust/Corporation Effective Date of Name Name Name Change - --------------------------- ---------------------------- ------------------------- -------------------------- Bank Loan Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Floating Rate Kemper Floating Rate Fund Scudder Floating Rate June 25, 2001 Fund Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Core/Index - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder S&P 500 Stock Kemper Funds Trust Scudder Investors Trust January 1, 2001 Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Core/Large Cap - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Blue Chip Fund Kemper Blue Chip Fund Scudder Blue Chip Fund June 11, 2001 - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Focus Kemper Value Plus Growth Scudder Value Plus June 11, 2001 Value+Growth Fund Fund Growth Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Research Fund Kemper Funds Trust Scudder Investors Trust January 1, 2001 - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Total Return Fund Kemper Total Return Fund Scudder Total Return June 11, 2001 Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Global/ International - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder International Kemper Scudder International May 29, 2001 Research Fund Global/International Research Fund, Inc. Series, Inc. - --------------------------- ---------------------------- ------------------------- -------------------------- Growth/Aggressive Growth - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Aggressive Growth Kemper Aggressive Growth Scudder Aggressive June 25, 2001 Fund Fund Growth Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Small Kemper Small Scudder Small June 25, 2001 Capitalization Equity Capitalization Equity Fund Capitalization Equity Fund Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Growth/Large Cap - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Growth Fund Kemper Growth Fund Scudder Growth Fund June 25, 2001 - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Focus Growth Fund Kemper Funds Trust Scudder Investors Trust January 1, 2001 - --------------------------- ---------------------------- ------------------------- -------------------------- Income - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder High-Yield Fund Kemper High Yield Series Scudder High Yield May 29, 2001 Series - --------------------------- ---------------------------- ------------------------- -------------------------- 13 - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Strategic Income Kemper Strategic Income Scudder Strategic May 29, 2001 Fund Fund Income Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder U.S. Government Kemper U.S. Government Scudder U.S. Government May 29, 2001 Securities Fund Securities Fund Securities Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Money Funds - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Cash Reserves Kemper Portfolios Scudder Portfolios May 29, 2001 - --------------------------- ---------------------------- ------------------------- -------------------------- Regional/International - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder New Europe Fund Kemper New Europe Fund, Scudder New Europe May 29, 2001 Inc. Fund, Inc. - --------------------------- ---------------------------- ------------------------- -------------------------- Sector - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder-Dreman Financial Kemper Equity Trust Scudder Equity Trust June 25, 2001 Services Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Technology Fund Kemper Technology Fund Scudder Technology Fund June 25, 2001 - --------------------------- ---------------------------- ------------------------- -------------------------- State Tax-Free Income - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder California Kemper State Tax-Free Scudder State Tax-Free June 18, 2001 Tax-Free Income Fund Income Series Income Series - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Florida Tax-Free Kemper State Tax-Free Scudder State Tax-Free June 18, 2001 Income Fund Income Series Income Series - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder New York Tax-Free Kemper State Tax-Free Scudder State Tax-Free June 18, 2001 Income Fund Income Series Income Series - --------------------------- ---------------------------- ------------------------- -------------------------- Target Equity - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Retirement Kemper Target Equity Fund Scudder Target Equity June 25, 2001 Fund-Series III Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Retirement Kemper Target Equity Fund Scudder Target Equity June 25, 2001 Fund-Series IV Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Retirement Kemper Target Equity Fund Scudder Target Equity June 25, 2001 Fund-Series V Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Retirement Kemper Target Equity Fund Scudder Target Equity June 25, 2001 Fund-Series VI Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Retirement Kemper Target Equity Fund Scudder Target Equity June 25, 2001 Fund-Series VII Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Target 2010 Fund Kemper Target Equity Fund Scudder Target Equity June 25, 2001 Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Target 2011 Fund Kemper Target Equity Fund Scudder Target Equity June 25, 2001 Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Worldwide 2004 Kemper Target Equity Fund Scudder Target Equity June 25, 2001 Fund Fund - --------------------------- ---------------------------- ------------------------- -------------------------- Value - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Contrarian Fund Kemper Value Series, Inc. Scudder Value Series, May 29, 2001 Inc. - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder-Dreman High Kemper Value Series, Inc. Scudder Value Series, May 29, 2001 Return Equity Fund Inc. - --------------------------- ---------------------------- ------------------------- -------------------------- Scudder Small Cap Value Kemper Value Series, Inc. Scudder Value Series, May 29, 2001 Fund Inc. - --------------------------- ---------------------------- ------------------------- --------------------------
Pending shareholder approval, the following information is added relating to the organization of Scudder Value Series, Inc. (formerly Kemper Value Series, Inc.), of which Scudder-Dreman High Return Equity Fund, Scudder Contrarian Fund and Scudder Small Cap Value Fund are series: 14 Master/feeder structure The Board has the discretion to retain the current distribution arrangement for the Fund while investing in a master fund in a master/feeder 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. May 29, 2001 15 -----END PRIVACY-ENHANCED MESSAGE-----