497 1 sp110904mega.txt PROSPECTUS SUPPLEMENT SCUDDER INVESTMENTS Supplement to the currently effective prospectus of each of the listed funds: The following information supplements the disclosure in the "How Much Investors Pay" section of each of the following funds' currently effective prospectuses: Scudder High Income Fund Scudder High Income Opportunity Fund Scudder High Income Plus Fund Effective February 1, 2005, each fund will impose a redemption fee of 2% of the total redemption amount (calculated at net asset value, without regard to the effect of any contingent deferred sales charge; any contingent deferred sales charge is also assessed on the total redemption amount without regard to the assessment of the 2% redemption fee) on all fund shares redeemed or exchanged within 60 days of buying them (either by purchase or exchange). The redemption fee is paid directly to a fund, and is designed to encourage long-term investment and to offset transaction and other costs associated with short-term or excessive trading. For purposes of determining whether the redemption fee applies, shares held the longest time will be treated as being redeemed first and shares held the shortest time will be treated as being redeemed last. The redemption fee is applicable to fund shares purchased either directly or through a financial intermediary, such as a broker-dealer. Transactions through financial intermediaries typically are placed with the funds on an omnibus basis and include both purchase and sale transactions placed on behalf of multiple investors. These purchase and sale transactions are generally netted against one another and placed on an aggregate basis; consequently the identities of the individuals on whose behalf the transactions are placed generally are not known to the funds. For this reason, the funds have undertaken to notify financial intermediaries of their obligation to assess the redemption fee on customer accounts and to collect and remit the proceeds to the funds. However, due to operational requirements, the intermediaries' methods for tracking and calculating the fee may be inadequate or differ in some respects from the funds'. The redemption fee will not be charged in connection with certain transactions such as exchange or redemption transactions on behalf of: (i) participants in certain research wrap programs; (ii) participants in certain group retirement plans whose processing systems are incapable of properly applying the redemption fee to underlying shareholders; and (iii) any mutual fund advised by the funds' investment advisor and its affiliates (e.g., "funds of funds") or, in the case of a master/feeder relationship, redemptions by the feeder fund from the master portfolio. The funds expect that the waiver for certain group retirement plans will be eliminated over time as the plans' operating systems are improved. Until such time that these operating systems are improved, the funds' investment advisor will attempt to monitor the trading activity in these accounts and will take appropriate corrective action if it appears that a pattern of short-term or excessive trading or other harmful or disruptive trading by underlying shareholders exists. The funds reserve the right to modify or terminate these waivers or the redemption fee at any time. The following information supplements the disclosure in the "How Much Investors Pay" section of each of the following funds' currently effective prospectuses: Scudder 21st Century Scudder Global Bond Fund Scudder Micro Cap Fund Growth Fund Scudder Global Discovery Scudder Mid Cap Growth Scudder Aggressive Growth Fund Fund Fund Scudder Gold and Precious Scudder New Europe Fund Scudder-Dreman Small Cap Metals Fund Scudder Pacific Value Fund Scudder Greater Europe Opportunities Fund Scudder Dynamic Growth Fund Growth Fund Scudder Small Cap Growth Scudder EAFE(R) Equity Scudder Health Care Fund Fund Index Fund Scudder International Scudder Small Company Scudder Emerging Markets Equity Fund Stock Fund Growth Fund Scudder International Scudder Small Company Scudder Emerging Markets Fund Value Fund Income Fund Scudder International Scudder Strategic Income Scudder Flag Investors Select Equity Fund Fund Communications Fund Scudder Japanese Equity Scudder Technology Fund Scudder Global Fund Fund Scudder Technology Scudder Global Scudder Latin America Fund Innovation Fund Biotechnology Fund Effective February 1, 2005, each fund will impose a redemption fee of 2% of the total redemption amount (calculated at net asset value, without regard to the effect of any contingent deferred sales charge; any contingent deferred sales charge is also assessed on the total redemption amount without regard to the assessment of the 2% redemption fee) on all fund shares redeemed or exchanged within 30 days of buying them (either by purchase or exchange). The redemption fee is paid directly to a fund, and is designed to encourage long-term investment and to offset transaction and other costs associated with short-term or excessive trading. For purposes of determining whether the redemption fee applies, shares held the longest time will be treated as being redeemed first and shares held the shortest time will be treated as being redeemed last. The redemption fee is applicable to fund shares purchased either directly or through a financial intermediary, such as a broker-dealer. Transactions through financial intermediaries typically are placed with the funds on an omnibus basis and include both purchase and sale transactions placed on behalf of multiple investors. These purchase and sale transactions are generally netted against one another and placed on an aggregate basis; consequently the identities of the individuals on whose behalf the transactions are placed generally are not known to the funds. For this reason, the funds have undertaken to notify financial intermediaries of their obligation to assess the redemption fee on customer accounts and to collect and remit the proceeds to the funds. However, due to operational requirements, the intermediaries' methods for tracking and calculating the fee may be inadequate or differ in some respects from the funds'. The redemption fee will not be charged in connection with certain transactions such as exchange or redemption transactions on behalf of: (i) participants in certain research wrap programs; (ii) participants in certain group retirement plans whose processing systems are incapable of properly applying the redemption fee to underlying shareholders; and (iii) any mutual fund advised by the funds' investment advisor and its affiliates (e.g., "funds of funds") or, in the case of a master/feeder relationship, redemptions by the feeder fund from the master portfolio. The funds expect that the waiver for certain group retirement plans will be eliminated over time as the plans' operating systems are improved. Until such time that these operating systems are improved, the funds' investment advisor will attempt to monitor the trading activity in these accounts and will take appropriate corrective action if it appears that a pattern of short-term or excessive trading or other harmful or disruptive trading by underlying shareholders exists. The funds reserve the right to modify or terminate these waivers or the redemption fee at any time. The following information supplements the disclosure in the "How Much Investors Pay" section of each of the following funds' currently effective prospectuses: Scudder Balanced Fund Scudder High Yield Scudder Pathway Series: Scudder Blue Chip Fund Tax-Free Fund Growth Portfolio Scudder California Scudder Income Fund Scudder Pathway Series: Tax-Free Income Fund Scudder Intermediate Moderate Portfolio Scudder Capital Growth Fund Tax/AMT Free Fund Scudder PreservationPlus Scudder Development Fund Scudder Large Cap Value Income Fund Scudder-Dreman Financial Fund Scudder RREEF Real Estate Services Fund Scudder Large Company Securities Fund Scudder-Dreman High Return Growth Fund Scudder S&P 500 Stock Fund Equity Fund Scudder Large Company Scudder S&P 500 Index Fund Scudder Equity 500 Index Value Fund Scudder Select 500 Fund Fund Scudder Lifecycle Long Scudder Short Duration Scudder Fixed Income Fund Range Fund Fund Scudder Flag Investors Scudder Lifecycle Mid Scudder Short-Term Bond Equity Partners Fund Range Fund Fund Scudder Flag Investors Scudder Lifecycle Short Scudder Short-Term Value Builder Fund Range Fund Municipal Bond Fund Scudder Florida Tax-Free Scudder Managed Municipal Scudder Target 2013 Fund Income Fund Bond Fund Scudder Tax Advantaged Scudder Focus Value+Growth Scudder Massachusetts Dividend Fund Fund Tax-Free Fund Scudder Total Return Fund Scudder GNMA Fund Scudder Municipal Bond Scudder US Bond Index Fund Scudder Growth Fund Fund Scudder US Government Scudder Growth and Income Scudder New York Tax-Free Securities Fund Fund Income Fund Scudder Pathway Series: Conservative Portfolio Scudder Pathway Series: Growth Plus Portfolio
Effective February 1, 2005, each fund will impose a redemption fee of 2% of the total redemption amount (calculated at net asset value, without regard to the effect of any contingent deferred sales charge; any contingent deferred sales charge is also assessed on the total redemption amount without regard to the assessment of the 2% redemption fee) on all fund shares redeemed or exchanged within 15 days of buying them (either by purchase or exchange). The redemption fee is paid directly to a fund, and is designed to encourage long-term investment and to offset transaction and other costs associated with short-term or excessive trading. For purposes of determining whether the redemption fee applies, shares held the longest time will be treated as being redeemed first and shares held the shortest time will be treated as being redeemed last. The redemption fee is applicable to fund shares purchased either directly or through a financial intermediary, such as a broker-dealer. Transactions through financial intermediaries typically are placed with the funds on an omnibus basis and include both purchase and sale transactions placed on behalf of multiple investors. These purchase and sale transactions are generally netted against one another and placed on an aggregate basis; consequently the identities of the individuals on whose behalf the transactions are placed generally are not known to the funds. For this reason, the funds have undertaken to notify financial intermediaries of their obligation to assess the redemption fee on customer accounts and to collect and remit the proceeds to the funds. However, due to operational requirements, the intermediaries' methods for tracking and calculating the fee may be inadequate or differ in some respects from the funds'. The redemption fee will not be charged in connection with certain transactions such as exchange or redemption transactions on behalf of: (i) participants in certain research wrap programs; (ii) participants in certain group retirement plans whose processing systems are incapable of properly applying the redemption fee to underlying shareholders; and (iii) any mutual fund advised by the funds' investment advisor and its affiliates (e.g., "funds of funds") or, in the case of a master/feeder relationship, redemptions by the feeder fund from the master portfolio. The funds expect that the waiver for certain group retirement plans will be eliminated over time as the plans' operating systems are improved. Until such time that these operating systems are improved, the funds' investment advisor will attempt to monitor the trading activity in these accounts and will take appropriate corrective action if it appears that a pattern of short-term or excessive trading or other harmful or disruptive trading by underlying shareholders exists. The funds reserve the right to modify or terminate these waivers or the redemption fee at any time. Please Retain This Supplement for Future Reference November 9, 2004