497 1 sp072304mega.txt MEGA SUPPLEMENT SCUDDER INVESTMENTS Supplement to the currently effective prospectus of each of the listed funds: Scudder 21st Century Growth Fund Scudder International Select Equity Fund Scudder Aggressive Growth Fund Scudder Large Cap Value Fund Scudder Blue Chip Fund Scudder Large Company Growth Fund Scudder Capital Growth Fund Scudder Large Company Value Fund Scudder-Dreman High Return Equity Fund Scudder Lifecycle Long Range Fund Scudder-Dreman Small Cap Value Fund Scudder Managed Municipal Bond Fund Scudder Dynamic Growth Fund Scudder Micro Cap Fund Scudder EAFE Equity Index Fund Scudder Mid Cap Fund Scudder Equity 500 Index Fund Scudder Municipal Bond Fund Scudder Fixed Income Fund Scudder New Europe Fund Scudder Flag Investors Communications Fund Scudder PreservationPlus Fund Scudder Flag Investors Equity Partners Fund Scudder RREEF Real Estate Securities Fund Scudder Flag Investors Value Builder Fund Scudder Short Duration Fund Scudder Growth and Income Fund Scudder Short-Term Municipal Bond Fund Scudder Growth Fund Scudder Strategic Income Fund Scudder Health Care Fund Scudder Tax Advantaged Dividend Fund Scudder High Income Fund Scudder Technology Fund Scudder High Income Plus Fund Scudder Technology Innovation Fund Scudder High Yield Tax-Free Fund Scudder Total Return Fund Scudder Income Fund Scudder Total Return Bond Fund Scudder International Equity Fund Scudder US Bond Index Fund Scudder International Fund Scudder US Government Securities Fund
For Scudder Dynamic Growth Fund, Scudder Large Company Value Fund and Scudder Technology Innovation Fund only: Deutsche Investment Management Americas Inc., the advisor of the above-noted funds (the "Advisor"), is proposing the following fund mergers as part of the Advisor's initiative to restructure and streamline the family of Scudder funds: Scudder Technology Innovation Fund, Scudder Large Company Value Fund and Scudder Dynamic Growth Fund (the "Acquired Funds") into Scudder Technology Fund, Scudder Large Cap Value Fund and Scudder Mid Cap Fund (the "Acquiring Funds"), respectively. Completion of each merger is subject to a number of conditions, including final approval by each participating Fund's Board and approval by shareholders of the Acquired Fund at a shareholder meeting expected to be held within approximately the next four months. Prior to the shareholder meeting, shareholders of each Acquired Fund will receive (i) a Proxy Statement/Prospectus describing in detail the proposed merger and the Board's considerations in recommending that shareholders approve the merger, and (ii) a Prospectus for the applicable Acquiring Fund. July, 23 2004 SMF-3639 PSMEGA-2B-074 For Scudder International Equity Fund, Institutional -- Class I, Class II only: The Board of Scudder International Equity Fund has approved a consolidation of Institutional -- Class I and Class II. Class II will consolidate into Class I, which will be renamed Institutional Class. This share class consolidation will not be a taxable event for shareholders. The consolidation will take place on or about August 13, 2004. The following replaces the first sentence in the "Investment minimums" sub-section of the "Buying and Selling Institutional Class Shares" section: As of August 13, 2004, your initial investment must be for at least $1,000,000. For Class I shareholders of the following funds only: Scudder Capital Growth Fund Scudder High Income Fund Scudder Technology Fund The Boards of the above listed funds have approved a consolidation, on or about August 13, 2004, of the Class I shares of each fund into the Institutional Class of each fund. Please refer to "Eligibility Requirements for Purchasing Institutional Class Shares" later in this prospectus supplement, since the eligibility requirements for purchasing Institutional Class shares are different from those for purchasing Class I shares. For Premier Class shareholders of the following funds only: Scudder EAFE Equity Index Fund Scudder Lifecycle Long Range Fund Scudder Equity 500 Index Fund Scudder US Bond Index Fund On or about August 13, 2004, Premier Class will be renamed Institutional Class. The following sentence replaces the first and second sentences in the "Investment minimums" sub-section of the "Buying and Selling Premier Class Shares" section: Your initial investment must be for at least $1,000,000. Shareholders as of August 13, 2004 do not need to meet the minimum initial investment requirement. Please refer to "Eligibility Requirements for Purchasing Institutional Class Shares" later in this prospectus supplement, as the eligibility requirements for purchasing Institutional Class shares are different from those for purchasing Premier Class shares. For Class I shareholders of the following funds only: Scudder 21st Century Growth Fund Scudder International Fund Scudder Aggressive Growth Fund Scudder Large Cap Value Fund Scudder Blue Chip Fund Scudder Large Company Growth Fund Scudder Dynamic Growth Fund Scudder Large Company Value Fund Scudder Growth Fund Scudder Strategic Income Fund Scudder Health Care Fund Scudder Total Return Fund Scudder Income Fund Scudder US Government Securities Fund On or about August 13, 2004, Class I will be renamed Institutional Class. Your initial investment must be for at least $1,000,000. Shareholders as of August 13, 2004 do not need to meet the new minimum initial investment requirement. Please refer to "Eligibility Requirements for Purchasing Institutional Class Shares" later in this prospectus supplement, since the eligibility requirements for purchasing Institutional Class shares are different from those for purchasing Class I shares. 2 For Institutional Class Shares of the following funds only: Scudder Capital Growth Fund Scudder International Select Equity Fund Scudder-Dreman High Return Equity Fund Scudder Managed Municipal Bond Fund Scudder-Dreman Small Cap Value Fund Scudder Micro Cap Fund Scudder Fixed Income Fund Scudder Mid Cap Fund Scudder Flag Investors Communications Fund Scudder Municipal Bond Fund Scudder Flag Investors Equity Partners Fund Scudder New Europe Fund Scudder Flag Investors Value Builder Fund Scudder RREEF Real Estate Securities Fund Scudder Growth and Income Fund Scudder Short Duration Fund Scudder High Income Fund Scudder Short-Term Municipal Bond Fund Scudder High Income Plus Fund Scudder Tax Advantaged Dividend Fund Scudder High Yield Tax-Free Fund Scudder Technology Fund Scudder International Equity Fund Scudder Total Return Bond Fund
On or about August 13, 2004 the following replaces the first sentence in the "Investment minimums" sub-section of the "Buying and Selling Institutional Class Shares" section: Your initial investment must be for at least $1,000,000. Shareholders as of August 13, 2004 do not need to meet the minimum initial investment requirement. For Scudder PreservationPlus Fund -- Institutional Class only: On or about August 13, 2004, the following section supplements the "Buying and Selling Institutional Class Shares" section: Investment minimums Your initial investment must be at least $1,000,000. There are no minimum subsequent investment requirements. The minimum initial investment is waived for: o Investment advisory affiliates of Deutsche Bank Securities, Inc. or Scudder funds purchasing shares for the accounts of their investment advisory clients. o Employee benefit plans with assets of at least $50 million. o Clients of the private banking division of Deutsche Bank AG. o A current or former Director or Trustee of the Deutsche or Scudder mutual funds. o An employee, the employee's spouse or life partner and children or step-children age 21 or younger of Deutsche Bank or its affiliates or a subadvisor to any fund in the Scudder family of funds or a broker-dealer authorized to sell shares of the fund. The fund and its service providers reserve the right to waive or modify the above eligibility requirements and investment minimums from time to time at their discretion. 3 Eligibility Requirements for Purchasing Institutional Class Shares You may buy Institutional Shares if you are any of the following: o An eligible institution (e.g., a financial institution, corporation, trust, estate or educational, religious or charitable institution). o An employee benefit plan with assets of at least $50 million. o A registered investment advisor or financial planner purchasing on behalf of clients and charging an asset-based or hourly fee. o A client of the private banking division of Deutsche Bank AG. o A current or former Director or Trustee of the Deutsche or Scudder mutual funds. o An employee, the employee's spouse or life partner and children or step-children age 21 or younger of Deutsche Bank or its affiliates or a sub-advisor to any fund in the Scudder family of funds or a broker-dealer authorized to sell shares in the funds. 4