497 1 sp060104mega.txt PROSPECTUS SUPPLEMENT - MEGA SCUDDER INVESTMENTS Supplement to the currently effective prospectus of each of the listed funds: Cash Account Trust Scudder Flag Investors Communications Scudder Pathway Series: Conservative Government & Agency Securities Portfolio Fund Portfolio Money Market Portfolio Scudder Flag Investors Equity Partners Scudder Pathway Series: Growth Portfolio Tax-Exempt Portfolio Fund Scudder Pathway Series: Moderate Cash Equivalent Fund Scudder Flag Investors Value Builder Portfolio Government & Agency Securities Portfolio Fund Scudder PreservationPlus Fund Money Market Portfolio Scudder Florida Tax-Free Income Fund Scudder PreservationPlus Income Fund Tax-Exempt Portfolio Scudder Focus Value + Growth Fund Scudder Retirement Fund -- Series V Cash Management Fund Institutional Scudder Global Biotechnology Fund Scudder Retirement Fund -- Series VI Cash Management Fund Investment Scudder Global Bond Fund Scudder Retirement Fund -- Series VII Cash Reserve Fund, Inc. Scudder Global Discovery Fund Scudder RREEF Real Estate Securities Fund Prime Series Scudder Global Fund Scudder S&P 500 Index Fund Treasury Series Scudder GNMA Fund Scudder S&P 500 Stock Fund Tax-Free Series Scudder Gold and Precious Metals Fund Scudder Select 500 Fund Cash Reserves Fund Institutional Scudder Greater Europe Growth Fund Scudder Short Duration Fund Daily Assets Fund Institutional Scudder Growth and Income Fund Scudder Short-Term Bond Fund Investors Cash Trust Scudder Growth Fund Scudder Short-Term Municipal Bond Fund Government & Agency Securities Portfolio Scudder Health Care Fund Scudder Small Cap Fund Treasury Portfolio Scudder High Income Fund Scudder Small Company Stock Fund Investors Municipal Cash Fund Scudder High Income Opportunity Fund Scudder Small Company Value Fund Investors Florida Municipal Cash Fund Scudder High Income Plus Fund Scudder Strategic Income Fund Investors Michigan Municipal Cash Fund Scudder High Yield Tax-Free Fund Scudder Target 2010 Fund Investors New Jersey Municipal Cash Fund Scudder Income Fund Scudder Target 2011 Fund Investors Pennsylvania Municipal Cash Scudder Intermediate Tax/AMT Free Fund Scudder Target 2012 Fund Fund Scudder International Equity Fund Scudder Target 2013 Fund Tax-Exempt New York Money Market Fund Scudder International Fund Scudder Tax Advantaged Dividend Fund Money Market Fund Investment Scudder International Select Equity Fund Scudder Tax Free Money Fund NY Tax Free Money Fund Investment Scudder Japanese Equity Fund Scudder Technology Fund Scudder 21st Century Growth Fund Scudder Large Cap Value Fund Scudder Technology Innovation Fund Scudder Aggressive Growth Fund Scudder Large Company Growth Fund Scudder Top 50 US Fund Scudder Balanced Fund Scudder Large Company Value Fund Scudder Total Return Fund Scudder Blue Chip Fund Scudder Latin America Fund Scudder Total Return Bond Fund Scudder California Tax-Free Income Fund Scudder Lifecycle Long Range Fund Scudder US Bond Index Fund Scudder Capital Growth Fund Scudder Lifecycle Mid Range Fund Scudder US Government Securities Fund Scudder Cash Investment Trust Scudder Lifecycle Short Range Fund Scudder US Treasury Money Fund Scudder Cash Reserves Fund Scudder Managed Municipal Bond Fund Scudder YieldWise Funds Scudder Development Fund Scudder Massachusetts Tax-Free Fund Scudder YieldWise Government & Agency Scudder-Dreman Financial Services Fund Scudder Micro Cap Fund Money Fund Scudder-Dreman High Return Equity Fund Scudder Mid Cap Fund Scudder YieldWise Money Fund Scudder-Dreman Small Cap Value Fund Scudder Money Funds Scudder YieldWise Municipal Money Fund Scudder Dynamic Growth Fund Scudder Government & Agency Money Fund Scudder Worldwide 2004 Fund Scudder EAFE Equity Index Fund Scudder Money Market Fund Tax Free Money Fund Investment Scudder Emerging Markets Debt Fund Scudder Tax-Exempt Money Fund Tax-Exempt California Money Market Fund Scudder Emerging Markets Growth Fund Scudder Money Market Series Treasury Money Fund Institutional Scudder Emerging Markets Income Fund Scudder Municipal Bond Fund Treasury Money Fund Investment Scudder Equity 500 Index Fund Scudder New Europe Fund Scudder European Equity Fund Scudder New York Tax-Free Income Fund Scudder Fixed Income Fund Scudder Pacific Opportunities Fund
June 1, 2004 SMF-3627 PSMEGA-2A-064 The following information is added to each fund's prospectus under the heading "Who Manages and Oversees the Funds": Regulatory and Litigation Matters Since at least July 2003, federal, state and industry regulators have been conducting ongoing inquiries and investigations ("inquiries") into the mutual fund industry, and have requested information from numerous mutual fund companies, including Scudder Investments. We are unable to determine what the outcome of these inquiries will be or what the effect, if any, would be on the funds or their advisors. Publicity about mutual fund practices arising from these industry-wide inquiries serve as the general basis of a number of private lawsuits against the Scudder funds. These lawsuits, which previously have been reported in the press, involve purported class action and derivative lawsuits, making various allegations and naming as defendants various persons, including certain Scudder funds, Deutsche Asset Management ("DeAM") and its affiliates, certain individuals, including in some cases fund Trustees/Directors, and other parties. DeAM has undertaken to bear all liabilities and expenses incurred by the Scudder funds in connection with these lawsuits, or other lawsuits or regulatory actions that may be filed making allegations similar to these lawsuits regarding fund valuation, market timing, revenue sharing or other subjects of the pending inquiries. Based on currently available information, DeAM believes the likelihood that the pending lawsuits will have a material adverse financial impact on a Scudder fund is remote and such actions are not likely to materially affect its ability to perform under its investment management agreements with the Scudder funds.