SCUDDER
SCUDDER VARIABLE LIFE INVESTMENT FUND
November 22, 1996
Dear Investor,
I'm writing to you today to provide you with some important information
regarding the Scudder Variable Life Investment Fund. This information is
provided to you on the reverse side of this letter and is a supplement to the
1996 Prospectus. Please keep it in your files with your Prospectus.
We've provided updated financial data on the Global Discovery Portfolio
for the period May 1, 1996 (commencement of operations) to June 30, 1996 and for
the six months ended June 30, 1996 for the remainder of the portfolios. The
information provided includes each Portfolio's net asset values, distributions
paid and total returns. This information was reported in the Semiannual Report
dated June 30, 1996.
If you have any questions about this information, please feel free to
call us at 1-800-225-2470.
Sincerely,
/s/David B. Watts
David B. Watts
President
Scudder Variable Life Investment Fund
This letter is for explanatory purposes and is not part of the prospectus
supplement.
(over please)
<PAGE>
Supplement to Prospectus Dated May 1, 1996
FINANCIAL HIGHLIGHTS
The following table supplements the expense and financial information found on
pages 2 through 7 in the Scudder Variable Life Investment Fund prospectus dated
May 1, 1996. In this table you will find a variety of information about the
income and the expenses of each Portfolio for the stated period. You will also
find the following: (1) the net gain or loss on the investments, (2) the
distributions, if any, of income and gain, and (3) the change in net asset value
per share from the beginning to the end of the stated period.
If you would like more detailed information concerning a Portfolio's
performance, a complete portfolio listing and unaudited financial statements are
available in the Fund's Semiannual Report dated June 30, 1996 and may be
obtained without charge by calling a Participating Insurance Company or by
writing to broker/dealers offering the previously mentioned variable annuity
contracts and Scudder Variable Life insurance policies, or Scudder Investor
Services, Inc.
<TABLE>
<CAPTION>
For the Net Asset Net Realized Distributions Distributions
Six Months Ended Value at Net & Unrealized Total from from Net from Net
June 30, 1996 (e) Beginning Investment Investment Investment Investment Realized
(Unaudited) of Period Income Gain (Loss) Operations Income Gains
----------- --------- ------ ----------- ---------- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Money Market Portfolio ............ $ 1.00 $ .025 -- -- $(.025) --
Bond Portfolio ..................... $ 7.16 $ .19 $ (.33) $ (.14) $ (.42) --
Balanced Portfolio ................. $10.95 $ .15 $ .50 $ .65 $ (.15) $ (.30)
Growth and Income Portfolio ........ $ 7.98 $ .13 $ .55 $ .68 $ (.11) $ (.10)
Capital Growth Portfolio ........... $15.08 $ .09 $ 1.26 $ 1.35 $ (.09) $(1.26)
Global Discovery Portfolio (f) ..... $ 6.00(b) $.01 (a) $ .09 $ .10 -- --
International Portfolio ............ $11.82 $ .10 $ .98 $ 1.08 $ (.29) --
</TABLE>
(a) Portion of expense reduction. See last column.
(b) Original Capital.
(c) Annualized.
(d) Not Annualized.
(e) Except for the Money Market Portfolio all per share amounts have been
calculated using the monthly average shares out-standing during the
period method.
(f) For the period May 1, 1996 (commencement of operations) to June 30, 1996.
November 22, 1996
<PAGE>
<TABLE>
<CAPTION>
Ratio of Ratio of Net
Net Asset Net Assets Operating Investment
Value at Total End of Expenses to Income to Portfolio Average Per Share
Total End of Return Period Average Net Average Net Turnover Commission Reimbursement
Distributions Period % (d) ($ millions) Assets % (c) Assets % (c) Rate % Rate Paid of Expenses (a)
------------- ------ ----- ------------ ------------ ------------ ------ --------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
-- $ 1.00 2.49 82 .48 4.95 -- -- --
$(.42) $ 6.60 (2.17) 63 .64 5.99 119.65 (c) -- --
$(.45) $11.15 6.05 79 .63 2.74 87.10 (c) $.0515 --
$(.21) $ 8.45 8.62 68 .68 3.09 37.48 (c) $.0493 --
$(1.35) $15.08 9.09 390 .54 1.23 68.45 (c) $.0593 --
-- $ 6.10 1.67 10 1.50 (a) 1.56 10.42 (d) $ .0014 $ .01
$(.29) $12.61 9.24 662 1.06 1.64 33.62 (c) $.0002 --
</TABLE>
