SCUDDER
                                                                     INVESTMENTS




Supplement to the currently effective prospectus of each of the listed funds:


The following information supplements or replaces similar disclosure in each of
the following funds' currently effective prospectuses:


Scudder High Income Fund

Scudder High Income Opportunity Fund

Scudder High Income Plus Fund

- --------------------------------------------------------------------------------

Each fund imposes 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 following information supplements or replaces similar disclosure in each of
the following funds' currently effective prospectuses:



                                                                       
Scudder Aggressive Growth Fund
Scudder-Dreman Small Cap Value Fund                                  Scudder International Fund
Scudder EAFE(R) Equity Index Fund                                    Scudder International Select Equity Fund
Scudder Emerging Markets Growth Fund                                 Scudder Japanese Equity Fund
Scudder Emerging Markets Income Fund                                 Scudder Latin America Fund
Scudder Flag Investors Communications Fund                           Scudder Micro Cap Fund
Scudder Global Fund                                                  Scudder Mid Cap Growth Fund
Scudder Global Biotechnology Fund                                    Scudder New Europe Fund
Scudder Global Bond Fund                                             Scudder Pacific Opportunities Fund
Scudder Global Discovery Fund                                        Scudder Small Cap Growth Fund
Scudder Gold and Precious Metals Fund                                Scudder Small Company Stock Fund
Scudder Greater Europe Growth Fund                                   Scudder Small Company Value Fund
Scudder Health Care Fund                                             Scudder Strategic Income Fund
Scudder International Equity Fund                                    Scudder Technology Fund

- --------------------------------------------------------------------------------

Each fund imposes 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 following information supplements or replaces similar disclosure in each of
the following funds' currently effective prospectuses:




                                                                      
Scudder Balanced Fund                                           Scudder Lifecycle Short Range Fund
Scudder Blue Chip Fund                                          Scudder Managed Municipal Bond Fund
Scudder California Tax-Free Income Fund                         Scudder Massachusetts Tax-Free Fund
Scudder Capital Growth Fund                                     Scudder New York Tax-Free Income Fund
Scudder Development Fund                                        Scudder Pathway Series: Conservative Portfolio
Scudder-Dreman Financial Services Fund                          Scudder Pathway Series: Growth Plus Portfolio
Scudder-Dreman High Return Equity Fund                          Scudder Pathway Series: Growth Portfolio
Scudder Equity 500 Index Fund                                   Scudder Pathway Series: Moderate Portfolio
Scudder Fixed Income Fund                                       Scudder PreservationPlus Income Fund
Scudder Flag Investors Equity Partners Fund                     Scudder RREEF Real Estate Securities Fund
Scudder Flag Investors Value Builder Fund                       Scudder S&P 500 Stock Fund
Scudder Florida Tax-Free Income Fund                            Scudder S&P 500 Index Fund
Scudder Focus Value+Growth Fund                                 Scudder Select 500 Fund
Scudder GNMA Fund                                               Scudder Short Duration Fund
Scudder Growth Fund                                             Scudder Short-Term Bond Fund
Scudder Growth and Income Fund                                  Scudder Short-Term Municipal Bond Fund
Scudder High Yield Tax-Free Fund                                Scudder Target 2013 Fund
Scudder Income Fund                                             Scudder Target 2014 Fund
Scudder Intermediate Tax/AMT Free Fund                          Scudder Tax Advantaged Dividend Fund
Scudder Large Cap Value Fund                                    Scudder Total Return Fund
Scudder Large Company Growth Fund                               Scudder US Bond Index Fund
Scudder Lifecycle Long Range Fund                               Scudder US Government Securities Fund
Scudder Lifecycle Mid Range Fund


- --------------------------------------------------------------------------------

Each fund imposes 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 following information supplements or replaces similar disclosure in each
fund's currently effective prospectuses:

For each fund listed in this supplement

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'. Subject to approval by DeAM or each fund's Board, intermediaries who
transact business on an omnibus basis may implement the redemption fees
according to their own operational guidelines (which may be different than the
funds' policies) and remit the fees to the funds. In addition, certain
intermediaries that do not currently have the capacity to collect redemption
fees at an account level may be granted a temporary waiver from the funds'
policies until such time as they can develop and implement a system to collect
the redemption fees.



The redemption fee will not be charged in connection with the following exchange
or redemption transactions: (i) transactions on behalf of participants in
certain research wrap programs; (ii) transactions on behalf of participants in
certain group retirement plans whose processing systems are incapable of
properly applying the redemption fee to underlying shareholders; (iii)
transactions on behalf of 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; (iv) transactions following death or disability of any registered
shareholder, beneficial owner or grantor of a living trust with respect to
shares purchased before death or disability; (v) transactions involving hardship
of any registered shareholder; (vi) systematic transactions with pre-defined
trade dates for purchases, exchanges or redemptions, such as automatic account
rebalancing, or loan origination and repayments; (vii) transactions involving
shares purchased through the reinvestment of dividends or other distributions;
(viii) transactions involving shares transferred from another account in the
same fund or converted from another class of the same fund (e.g. shares
converting from Class B to Class A) (the redemption fee period will carry over
to the acquired shares); (ix) transactions initiated by a fund or administrator
(e.g. redemptions for not meeting account minimums, to pay account fees funded
by share redemptions, or in the event of the liquidation or merger of a fund);
(x) transactions in cases when there are legal or contractual limitations or
restrictions on the imposition of the redemption fee (as determined by the funds
or their agents in their sole discretion); or (xi) for Scudder Massachusetts
Tax-Free Fund, Scudder Short-Term Bond Fund and Scudder Intermediate Tax/AMT
Free Fund only: check writing transactions in these funds.

The funds expect that the waiver for certain group retirement plans and
financial intermediaries will be eliminated over time as their respective
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 withdraw waivers, and to modify or terminate these waivers or the
redemption fee at any time.

The following information replaces the paragraph "Exchanges are a shareholder
privilege not a right" under "Policies You Should Know About" in each fund's
prospectus:

For each fund listed in this supplement

Market Timing Policies and Procedures. Short-term and excessive trading of fund
shares may present risks to the fund's long-term shareholders, including
potential dilution in the value of fund shares, interference with the efficient
management of the fund's portfolio (including losses on the sale of
investments), taxable gains to remaining shareholders and increased brokerage
and administrative costs. These risks may be more pronounced for funds investing
in certain securities such as those that trade in foreign markets, are illiquid
or do not otherwise have "readily available market quotations." Certain
investors may seek to employ short-term trading strategies aimed at exploiting
variations in portfolio valuation that arise from the nature of the securities
held by the fund (e.g., "time zone arbitrage").

The fund discourages short-term and excessive trading. The fund will take steps
to detect and deter short-term and excessive trading pursuant to the fund's
policies as described in this prospectus and approved by the Board. The fund
generally defines short-term trading as purchase and redemption activity,
including exchanges, that occurs within the time period for imposition of
redemption fees. The fund may also take trading activity that occurs over longer
periods into account if the fund reasonably believes such activity is of an
amount or frequency that may be harmful to long-term shareholders or disruptive
to portfolio management.

The fund's policies include:

o  a 2% redemption fee on fund shares held for less than a specified holding
   period (subject to certain exceptions noted in the discussion of redemption
   fees);

o  the fund reserves the right to reject or cancel a purchase or exchange order
   for any reason when, in the opinion of the Advisor, there appears to be a
   pattern of short-term or excessive trading activity by a shareholder or any
   other trading activity deemed harmful or disruptive to the fund; and

o  the fund has adopted certain fair valuation practices reasonably designed to
   protect the fund from "time zone arbitrage" with respect to its foreign
   securities holdings and other trading practices that seek to exploit
   variations in portfolio valuation that arise from the nature of the
   securities held by the fund. (See "How the fund calculates share price" in
   each fund's prospectus.)

When a pattern of short-term or excessive trading activity or other trading
activity deemed harmful or disruptive to the fund by an investor is detected,
the Advisor may determine to prohibit that investor from future purchases in the
funds or to limit or terminate the investor's exchange privilege. The detection
of these patterns and the banning of further trading are inherently subjective
and therefore involve some selectivity in their application. The Advisor seeks
to make such determinations in a manner consistent with the interests of the
fund's long-term shareholders.




There is no assurance that these policies and procedures will be effective in
limiting short-term and excessive trading in all cases. For example, the Advisor
may not be able to effectively monitor, detect or limit short-term or excessive
trading by underlying shareholders that occurs through omnibus accounts
maintained by broker-dealers or other financial intermediaries. Depending on the
amount of fund shares held in such omnibus accounts (which may represent most of
the fund's shares) short-term and/or excessive trading of fund shares could
adversely affect long-term shareholders in the fund. It is important to note
that shareholders that invest through omnibus accounts also may be subject to
the policies and procedures of their financial intermediaries with respect to
short-term and excessive trading in the fund.

The fund's policies and procedures may be modified or terminated at any time.

The following replaces the disclosure regarding fair valuation under "How the
fund calculates share price" under "Policies You Should Know About" in each
fund's prospectus:

We typically value securities using information furnished by an independent
pricing service or market quotations, where appropriate. However, we may use
methods approved by the fund's Board, such as a fair valuation model, which are
intended to reflect fair value when pricing service information or market
quotations are not readily available or when a security's value or a meaningful
portion of the value of the fund's portfolio is believed to have been materially
affected by a significant event, such as a natural disaster, an economic event
like a bankruptcy filing, or a substantial fluctuation in domestic or foreign
markets, that has occurred between the close of the exchange or market on which
the security is principally traded (for example, a foreign exchange or market)
and the close of the New York Stock Exchange. In such a case, the fund's value
for a security is likely to be different from the last quoted market price or
pricing service information. In addition, due to the subjective and variable
nature of fair value pricing, it is possible that the value determined for a
particular asset may be materially different from the value realized upon such
asset's sale. It is expected that the greater the percentage of fund assets that
is invested in non-US securities, the more extensive will be the fund's use of
fair value pricing. This is intended to reduce the fund's exposure to "time zone
arbitrage" and other harmful trading practices. (See "Market Timing Policies and
Procedures.")

The following supplements the "Other Policies and Risks" or "Other Policies and
Secondary Risks" section of each fund's prospectus:

The fund's complete portfolio holdings as of the end of each calendar month are
posted on www.scudder.com ordinarily on the 15th day of the following calendar
month, or the first business day thereafter. This posted information generally
remains accessible at least until the fund files its Form N-CSR or N-Q with the
Securities and Exchange Commission for the period that includes the date as of
which the www.scudder.com information is current (expected to be at least three
months). The fund's Statement of Additional Information includes a description
of the fund's policies and procedures with respect to the disclosure of the
fund's portfolio holdings.

The following information supplements disclosure in the "How Much Investors Pay"
section of each applicable fund's currently effective Class A prospectus:

For each fund listed in this supplement with a Class A prospectus

Because of rounding in the calculation of the offering price, the actual maximum
front-end sales charge paid by an investor may be higher than the percentage
noted (see "Choosing a Share Class -- Class A shares").

The following information supplements the front-end sales charge breakpoint
schedule in the "Choosing a Share Class -- Class A shares" section of each
applicable fund's currently effective Class A prospectus.

For each fund listed in this supplement with a Class A prospectus

Because of rounding in the calculation of the offering price, the actual
front-end sales charge paid by an investor may be higher or lower than the
percentage noted above.






               Please Retain This Supplement for Future Reference





February 4, 2005



                                                                     SCUDDER
                                                                     INVESTMENTS

Supplement to the currently  effective  Statement of Additional  Information  of
each of the listed funds:


                                                                                   
Scudder Aggressive Growth Fund               Scudder Gold and Precious Metals Fund       Scudder New York Tax-Free Income Fund

Scudder Balanced Fund                        Scudder Greater Europe Growth Fund          Scudder Pacific Opportunities Fund

Scudder Blue Chip Fund                       Scudder Growth Fund                         Scudder Pathway Series: Conservative
                                                                                            Portfolio
Scudder California Tax-Free Income Fund      Scudder Growth and Income Fund
                                                                                         Scudder Pathway Series: Growth Plus
Scudder Capital Growth Fund                  Scudder Health Care Fund                       Portfolio

Scudder Development Fund                     Scudder High Income Fund                    Scudder Pathway Series: Growth Portfolio

Scudder-Dreman Financial Services Fund       Scudder High Income Opportunity Fund        Scudder Pathway Series: Moderate Portfolio

Scudder-Dreman High Return Equity Fund       Scudder High Income Plus Fund               Scudder PreservationPlus Income Fund

Scudder-Dreman Small Cap Value               Scudder High Yield Tax-Free Fund            Scudder RREEF Real Estate Securities Fund
   Fund
                                             Scudder Income Fund                         Scudder S&P 500 Stock Fund
Scudder EAFE(R) Equity Index Fund
                                             Scudder Intermediate Tax/AMT Free Fund      Scudder S&P 500 Index Fund
Scudder Emerging Markets Growth Fund
                                             Scudder International Equity Fund           Scudder Select 500 Fund
Scudder Emerging Markets Income Fund
                                             Scudder International Fund                  Scudder Short Duration Fund
Scudder Equity 500 Index Fund
                                             Scudder International Select Equity Fund    Scudder Short-Term Bond Fund
Scudder Fixed Income Fund
                                             Scudder Japanese Equity Fund                Scudder Short-Term Municipal Bond Fund
Scudder Flag Investors Communications Fund
                                             Scudder Large Cap Value Fund                Scudder Small Cap Growth Fund
Scudder Flag Investors Equity Partners Fund
                                             Scudder Large Company Growth Fund           Scudder Small Company Stock Fund
Scudder Flag Investors Value Builder Fund
                                             Scudder Latin America Fund                  Scudder Small Company Value Fund
Scudder Florida Tax-Free Income Fund
                                             Scudder Lifecycle Long Range Fund           Scudder Strategic Income Fund
Scudder Focus Value+Growth Fund
                                             Scudder Lifecycle Mid Range Fund            Scudder Target 2013 Fund
Scudder Global Fund
                                             Scudder Lifecycle Short Range Fund          Scudder Target 2014 Fund
Scudder Global Biotechnology Fund
                                             Scudder Managed Municipal Bond Fund         Scudder Tax Advantaged Dividend Fund
Scudder Global Bond Fund
                                             Scudder Massachusetts Tax-Free Fund         Scudder Technology Fund
Scudder Global Discovery Fund
                                             Scudder Micro Cap Fund                      Scudder Total Return Fund
Scudder GNMA Fund
                                             Scudder Mid Cap Growth Fund                 Scudder US Bond Index Fund

                                             Scudder New Europe Fund                     Scudder US Government Securities Fund
- ------------------------------------------------------------------------------------------------------------------------------------



The paragraph  relating to the 15-Day Hold Policy on exchanges is hereby removed
from each fund's Statement of Additional Information.

The following  supplements the "Investment  Restrictions" section of each fund's
Statement of Additional Information:

The Fund's complete  portfolio holdings as of the end of each calendar month are
posted on  www.scudder.com  ordinarily on the 15th day of the following calendar
month, or the first business day thereafter.  This posted information  generally
remains  accessible at least until the Fund files its Form N-CSR or N-Q with the
Securities  and Exchange  Commission for the period that includes the date as of
which the www.scudder.com  information is current (expected to be at least three
months).  The Fund does not disseminate  nonpublic  information  about portfolio
holdings except in accordance with policies and procedures adopted by the Fund.




The Fund's  procedures  permit nonpublic  portfolio  holdings  information to be
shared with  affiliates of the advisor,  sub-advisors,  custodians,  independent
registered public accounting firms,  securities lending agents and other service
providers to the Fund who require  access to this  information  to fulfill their
duties  to  the  Fund,  subject  to  the  requirements   described  below.  This
information may also be disclosed to certain mutual fund analysts and rating and
tracking  agencies,  such  as  Lipper,  or  other  entities  if the  Fund  has a
legitimate  business  purpose in providing the  information  sooner than 16 days
after  month-end or on a more  frequent  basis,  as  applicable,  subject to the
requirements described below.

Prior to any disclosure of the Fund's nonpublic  portfolio holdings  information
to the foregoing types of entities or persons, a person authorized by the Fund's
Trustees/Directors  must make a good faith  determination  in light of the facts
then known that the Fund has a legitimate  business  purpose for  providing  the
information,  that the  disclosure is in the best interest of the Fund, and that
the  recipient  assents  or  otherwise  has  a  duty  to  keep  the  information
confidential  and  agrees  not  to  disclose,   trade  or  make  any  investment
recommendation  based on the information  received.  Periodic reports  regarding
these procedures will be provided to the Fund's Trustees/Directors.

Supplement to the currently  effective  Statement of Additional  Information  of
each of the listed funds:


                                                                                   
Scudder Aggressive Growth Fund               Scudder Gold and Precious Metals Fund       Scudder New York Tax-Free Income Fund

Scudder Balanced Fund                        Scudder Greater Europe Growth Fund          Scudder Pacific Opportunities Fund

Scudder Blue Chip Fund                       Scudder Growth Fund                         Scudder Pathway Series: Conservative
                                                                                            Portfolio
Scudder California Tax-Free Income Fund      Scudder Growth and Income Fund
                                                                                         Scudder Pathway Series: Growth Plus
Scudder Capital Growth Fund                  Scudder Health Care Fund                       Portfolio

Scudder Development Fund                     Scudder High Income Fund                    Scudder Pathway Series: Growth Portfolio

Scudder-Dreman Financial Services Fund       Scudder High Income Opportunity Fund        Scudder Pathway Series: Moderate Portfolio

Scudder-Dreman High Return Equity Fund       Scudder High Income Plus Fund               Scudder PreservationPlus Income Fund

Scudder-Dreman Small Cap Value               Scudder High Yield Tax-Free Fund            Scudder RREEF Real Estate Securities Fund
   Fund
                                             Scudder Income Fund                         Scudder S&P 500 Stock Fund
Scudder EAFE(R) Equity Index Fund
                                             Scudder Intermediate Tax/AMT Free Fund      Scudder S&P 500 Index Fund
Scudder Emerging Markets Growth Fund
                                             Scudder International Equity Fund           Scudder Select 500 Fund
Scudder Emerging Markets Income Fund
                                             Scudder International Fund                  Scudder Short Duration Fund
Scudder Equity 500 Index Fund
                                             Scudder International Select Equity Fund    Scudder Short-Term Bond Fund
Scudder Fixed Income Fund
                                             Scudder Japanese Equity Fund                Scudder Short-Term Municipal Bond Fund
Scudder Flag Investors Communications Fund
                                             Scudder Large Cap Value Fund                Scudder Small Cap Growth Fund
Scudder Flag Investors Equity Partners Fund
                                             Scudder Large Company Growth Fund           Scudder Small Company Stock Fund
Scudder Flag Investors Value Builder Fund
                                             Scudder Latin America Fund                  Scudder Small Company Value Fund
Scudder Florida Tax-Free Income Fund
                                             Scudder Lifecycle Long Range Fund           Scudder Strategic Income Fund
Scudder Global Fund
                                             Scudder Lifecycle Mid Range Fund            Scudder Target 2013 Fund
Scudder Global Biotechnology Fund
                                             Scudder Lifecycle Short Range Fund          Scudder Target 2014 Fund
Scudder Global Bond Fund
                                             Scudder Managed Municipal Bond Fund         Scudder Tax Advantaged Dividend Fund
Scudder Global Discovery Fund
                                             Scudder Massachusetts Tax-Free Fund         Scudder Technology Fund
Scudder GNMA Fund
                                             Scudder Micro Cap Fund                      Scudder Total Return Fund

                                             Scudder Mid Cap Growth Fund                 Scudder US Bond Index Fund

                                             Scudder New Europe Fund                     Scudder US Government Securities Fund
- ------------------------------------------------------------------------------------------------------------------------------------




The following  information  replaces the disclosure in the funds'  statements of
additional  information  regarding  the  Advisor's  policies with respect to its
selection  of  broker-dealers  to execute  the  purchase  and sale of the funds'
portfolio  securities,  the  allocation of


                                       2


trades among the funds and the use of  broker-dealers  that are affiliated  with
the  Advisor  appearing  under  one  of  the  following   captions:   "Portfolio
Transactions  and  Brokerage  Commissions,"  "Fund  Transactions  and  Brokerage
Commissions,"   "Portfolio   Transactions,"  "Fund   Transactions,"   "Portfolio
Transactions--Brokerage,"  "Brokerage Commissions,"  "Brokerage," and "Portfolio
Transactions--Portfolio  Transactions of the Underlying Funds." Other disclosure
appearing  under those captions,  including the amount of brokerage  commissions
paid by a fund  during  the  three  most  recent  fiscal  years,  the  amount of
brokerage  commissions  directed for research during a fund's most recent fiscal
year,  the amount of brokerage  commissions  paid to  affiliated  broker-dealers
during a fund's  three  most  recent  fiscal  years  and a  fund's  holdings  of
securities issued by its regular broker-dealers as of the end of the fund's most
recent fiscal year, is not affected by this supplement.

                             PORTFOLIO TRANSACTIONS

The Advisor is generally responsible for placing the orders for the purchase and
sale of portfolio  securities,  including  the  allocation  of  brokerage.  With
respect to those  funds for which a  sub-investment  advisor  manages the fund's
investments,  references in this section to the "Advisor" should be read to mean
the Sub-Advisor.

The  policy of the  Advisor  in  placing  orders  for the  purchase  and sale of
securities  for the funds is to seek best  execution,  taking into  account such
factors,   among  others,   as  price;   commission  (where   applicable);   the
broker-dealer's   ability  to  ensure  that  securities  will  be  delivered  on
settlement date; the willingness of the  broker-dealer to commit its capital and
purchase  a  thinly  traded   security  for  its  own  inventory;   whether  the
broker-dealer   specializes  in  block  orders  or  large  program  trades;  the
broker-dealer's  knowledge of the market and the security;  the  broker-dealer's
ability  to  maintain   confidentiality;   the   financial   condition   of  the
broker-dealer;   and  whether  the  broker-dealer  has  the  infrastructure  and
operational  capabilities to execute and settle the trade.  The Advisor seeks to
evaluate the overall  reasonableness  of brokerage  commissions with commissions
charged on comparable  transactions  and compares the brokerage  commissions (if
any) paid by the funds to  reported  commissions  paid by  others.  The  Advisor
routinely reviews commission rates,  execution and settlement services performed
and makes internal and external comparisons.

Commission  rates  on  transactions  in  equity  securities  on U.S.  securities
exchanges are subject to negotiation. Commission rates on transactions in equity
securities on foreign  securities  exchanges are generally fixed.  Purchases and
sales of  fixed-income  securities  and other  over-the-counter  securities  are
effected  on  a  net  basis,  without  the  payment  of  brokerage  commissions.
Transactions in fixed income and other over-the-counter securities are generally
placed by the Advisor  with the  principal  market  makers for these  securities
unless the Advisor  reasonably  believes  more  favorable  results are available
elsewhere. Transactions with dealers serving as market makers reflect the spread
between the bid and asked prices.  Purchases of underwritten issues will include
an  underwriting  fee paid to the  underwriter.  Money  market  instruments  are
normally purchased in principal transactions directly from the issuer or from an
underwriter or market maker.

It is  likely  that the  broker-dealers  selected  based  on the  considerations
described in this section will include  firms that also sell shares of the funds
to their  customers.  However,  the Advisor does not consider sales of shares of
the funds as a factor in the selection of  broker-dealers  to execute  portfolio
transactions  for the funds  and,  accordingly,  has  implemented  policies  and
procedures  reasonably designed to prevent its traders from considering sales of
shares of the funds as a factor in the  selection of  broker-dealers  to execute
portfolio transactions for the funds.

The Advisor is  permitted  by Section  28(e) of the  Securities  Exchange Act of
1934, as amended ("1934 Act"), when placing  portfolio  transactions for a fund,
to cause the fund to pay brokerage  commissions  in excess of that which another
broker-dealer might charge for executing the same transaction in order to obtain
research and brokerage services.  The Advisor,  however, does not as a matter of
policy execute  transactions with broker-dealers for the fund in order to obtain
research  from such  broker-dealers  that is  prepared by third  parties  (i.e.,
"third party research"). However, the Advisor may from time to time, in reliance
on Section 28(e) of the 1934 Act, obtain  proprietary  research  prepared by the
executing broker-dealer in connection with a transaction or transactions through
that broker-dealer (i.e., "proprietary research"). Consistent with the Advisor's
policy  regarding best  execution,  where more than one broker is believed to be
capable of providing best execution for a particular trade, the Advisor may take
into  consideration  the  receipt  of  proprietary  research  in  selecting  the
broker-dealer   to  execute  the  trade.   Proprietary   research   provided  by
broker-dealers  may include,  but is not limited to, information on the economy,
industries, groups of securities, individual companies, statistical information,
accounting  and  tax  law   interpretations,   political   developments,   legal
developments  affecting portfolio securities,  technical market action,  pricing
and appraisal services, credit analysis, risk measurement analysis,  performance
analysis  and  measurement  and  analysis of  corporate  responsibility  issues.
Proprietary  research  is  typically  received  in the form of written  reports,
telephone contacts and personal meetings with security analysts, but may also be
provided  in the form of access to  various  computer  software  and  associated
hardware, and meetings arranged with corporate and industry representatives.


                                       3



In  reliance  on Section  28(e) of the 1934 Act,  the  Advisor  may also  select
broker-dealers  and obtain from them brokerage  services in the form of software
and/or  hardware that is used in connection  with executing  trades.  Typically,
this  computer  software  and/or  hardware is used by the Advisor to  facilitate
trading activity with those broker-dealers.

Proprietary research and brokerage services received from a broker-dealer chosen
to execute a particular trade may be useful to the Advisor in providing services
to clients other than the fund making the trade, and not all such information is
used by the Advisor in connection with such fund.  Conversely,  such information
provided to the Advisor by  broker-dealers  through  which other  clients of the
Advisor effect securities transactions may be useful to the Advisor in providing
services to the fund.

The Advisor will monitor regulatory  developments and market practice in the use
of client  commissions  to  obtain  research  and  brokerage  services,  whether
proprietary or third party.

Investment  decisions for each fund and for other investment accounts managed by
the  Advisor  are  made  independently  of each  other  in  light  of  differing
conditions. However, the same investment decision may be made for two or more of
such accounts. In such cases,  simultaneous  transactions are inevitable. To the
extent  permitted by law, the Advisor may aggregate the securities to be sold or
purchased  for a fund with those to be sold or purchased  for other  accounts in
executing  transactions.  Purchases  or sales are then  averaged as to price and
commission  and  allocated  as to amount in a manner  deemed  equitable  to each
account.  While in some cases this practice  could have a detrimental  effect on
the price  paid or  received  by,  or on the size of the  position  obtained  or
disposed of for,  the fund,  in other  cases it is believed  that the ability to
engage in volume transactions will be beneficial to the fund.

Deutsche Bank AG or one of its affiliates (or in the case of a sub-adviser,  the
sub-adviser  or one of its  affiliates)  may act as a broker  for the  funds and
receive brokerage commissions or other transaction-related compensation from the
funds in the purchase and sale of securities, options or futures contracts when,
in the judgment of the Advisor,  and in accordance with  procedures  approved by
the funds'  Boards,  the  affiliated  broker  will be able to obtain a price and
execution at least as favorable as those obtained from other  qualified  brokers
and if,  in the  transaction,  the  affiliated  broker  charges  the fund a rate
consistent  with that charged to  comparable  unaffiliated  customers in similar
transactions.





               Please Retain This Supplement for Future Reference


February 4, 2005




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