Supplement to the currently  effective  Statement of Additional  Information for
each of the listed funds:
- --------------------------------------------------------------------------------
Scudder 21st Century Growth Fund

Scudder Aggressive Growth Fund

Scudder Blue Chip Fund

Scudder Capital Growth Fund

Scudder Contrarian Fund

Scudder-Dreman Financial Services Fund

Scudder-Dreman High Return Equity Fund

Scudder-Dreman Small Cap Value Fund

Scudder Dynamic Growth Fund

Scudder Emerging Markets Growth Fund

Scudder Emerging Markets Income Fund

Scudder Floating Rate Fund

Scudder Focus Value+Growth Fund

Scudder Global Bond Fund

Scudder Global Discovery Fund

Scudder Global Fund

Scudder Gold and Precious Metals Fund

Scudder Greater Europe Growth Fund

Scudder Growth and Income Fund

Scudder Growth Fund

Scudder Health Care Fund

Scudder High-Yield Fund

Scudder High-Yield Opportunity Fund

Scudder High-Yield Tax-Free Fund

Scudder Income Fund

Scudder International Fund

Scudder Large Company Growth Fund

Scudder Large Company Value Fund

Scudder Latin America Fund

Scudder Managed Municipal Bonds

Scudder Medium-Term Tax-Free Fund

Scudder New Europe Fund

Scudder Pacific Opportunities Fund

Scudder Pathway Series: Conservative Portfolio

Scudder Pathway Series: Growth Portfolio

Scudder Pathway Series: Moderate Portfolio

Scudder S&P 500 Stock Fund

Scudder Select 1000 Growth Fund

Scudder Select 500 Fund

Scudder Short-Term Bond Fund

Scudder Small Company Stock Fund

Scudder Small Company Value Fund

Scudder Strategic Income Fund

Scudder Target 2011 Fund

Scudder Target 2012 Fund

(formerly Scudder Retirement Fund--Series III)


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Scudder Technology Fund

Scudder Technology Innovation Fund

Scudder Total Return Fund

Scudder U.S. Government Securities Fund


The following  information  replaces the disclosure under the "Which Arrangement
is Better  for You?"  paragraph  in the  "Purchase  of  Shares"  section of each
Statement of Additional Information:

Which Arrangement is Better for You?

The decision as to which class of shares provides a more suitable investment for
an investor  depends on a number of factors,  including  the amount and intended
length of the investment. In making this decision, investors should review their
particular   circumstances   carefully  with  their  financial   representative.
Investors  making  investments  that  qualify for reduced  sales  charges  might
consider Class A Shares. Investors who prefer not to pay an initial sales charge
and who plan to hold their  investment  for more than six years  might  consider
Class B Shares.  Investors who prefer not to pay an initial sales charge but who
plan to redeem their Shares within six years might consider Class C shares.

SDI has established the following  procedure  regarding the purchase of Class A,
Class B and Class C  Shares.  These  procedures  do not  reflect  in any way the
suitability of a particular class of shares for a particular investor and should
not be relied upon as such.  That  determination  must be made by investors with
the assistance of their financial  representative.  Orders for Class B Shares or
Class C Shares for  $500,000  or more will be  declined  with the  exception  of
orders  received  from  employer  sponsored  employee  benefit  plans  using the
subaccount  recordkeeping system available through the Shareholder Service Agent
(Flex  Plans).  Orders  for Class B Shares or Class C Shares for Flex Plans (not
including  plans  under  Code  Section  403(b)(7)  sponsored  by a  K-12  school
district)  set up on Flex Plans  prior to October  1, 2002 will be  invested  in
Class A Shares at net asset value when the combined  subaccount  value in a Fund
or other Scudder Funds or other eligible assets listed under "Special Features -
Class A Shares -  Combined  Purchases"  is in  excess  of $5  million  including
purchases  pursuant  to  the  "Combined   Purchases,"  "Letter  of  Intent"  and
"Cumulative  Discount" features  described under "Special  Features." Flex Plans
set-up on the Flex recordkeeping system after October 1, 2002 will automatically
begin  purchasing  Class A shares at net asset  value once the  plan's  eligible
assets reach $1 million.  Flex Plans  established  prior to October 1, 2002 with
eligible  assets of less than $5 million may  continue to purchase  Class B or C
shares  until  October 1,  2005.  After  October  1,  2005,  all Flex Plans with
eligible  assets  over $1 million  must  begin  purchasing  Class A Shares.  For
purposes of  redirecting  contributions,  Flex Plan  values  will be  calculated
annually.

Flex Plans that satisfy each of the  conditions  described  below may direct the
Shareholder  Service Agent to convert plan assets  invested in Class B Shares to
Class A Shares at net asset value without incurring a contingent  deferred sales
charge. In order to qualify for the preceding conversion privilege,  a Flex Plan
must  satisfy  each of the  following  conditions:  (1) the  plan  must  have an
aggregate  balance of $2 million in plan assets  invested  in eligible  funds or
other  investments  maintained  on the  subaccount  recordkeeping  system of the
Shareholder  Service  Agent;  (2) the plan must have elected to purchase Class A
Shares of the eligible funds at net asset value for future  contributions  to be
invested in eligible funds; and (3) the plan must have been using the subaccount
recordkeeping  system of the Shareholder  Service Agent for at least four years.
When  eligible,  Flex Plan  sponsors  must elect in  writing to the  Shareholder
Service  Agent in order to convert  plan  assets  from Class B Shares to Class A
Shares.


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For more  information  about these sales  arrangements,  consult your  financial
representative or the Shareholder Service Agent. In particular,  for information
concerning the  eligibility of investors to purchase Class A Shares at net asset
value,  see  "Purchase  of Shares - Initial  Sales Charge  Alternative"  and for
information  on  special  rules  for  aggregating   assets  of  Flex  Plans  for
eligibility  for the  Combined  Purchase  and  related  features,  see  "Special
Features - Class A Shares - Combined  Purchases."  Financial  services firms may
receive different  compensation  depending upon which class of shares they sell.
Class I shares are available to certain eligible investors,  as described in the
relevant prospectus.
























September 12, 2002


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