Scudder
Scudder Variable Life Investment Fund
Money Market Portfolio
Bond Portfolio
Balanced Portfolio
Growth and Income Portfolio
Capital Growth Portfolio
Global Discovery Portfolio
International Portfolio
Supplement to Prospectus
Dated May 1, 1997
Scudder, Stevens & Clark, Inc. ("Scudder"), the investment adviser for Scudder
Variable Life Investment Fund (the "Fund"), has entered into an agreement with
The Zurich Group ("Zurich"), an international insurance and financial services
organization, pursuant to which Scudder will form a new global investment
organization by combining with Zurich's subsidiary, Zurich Kemper Investments,
Inc., and change its name to Scudder Kemper Investments, Inc. After the
transaction is completed, Zurich will own approximately 70% of the new
organization with the balance owned by the new organization's officers and
employees.
Consummation of the transaction is subject to a number of contingencies,
including regulatory approvals. Because the transaction would constitute an
assignment of each Portfolio's investment advisory agreement with Scudder under
the Investment Company Act of 1940, and, therefore, a termination of each
agreement, it is anticipated that Scudder will seek approval of new agreements
from the Fund's shareholders prior to consummation of the transaction. The
transaction is expected to close in the fourth quarter of 1997.
July 18, 1997
Money Market Portfolio
Supplement to Prospectus
Dated May 1, 1997
The following modifies the section entitled "INVESTMENT ADVISER" in the
Portfolio's prospectus:
MONEY MARKET PORTFOLIO
Lead Portfolio Manager David Wines assumed responsibility for the Portfolio's
day-to-day management in 1997. Mr. Wines, who joined Scudder and the team in
1996, focuses on overall investment strategy and has eight years investment
industry experience. Nicca Alacantara, Portfolio Manager, has responsibility for
the Portfolio's day-to-day investments. Ms. Alcantara, who came to Scudder in
1984, has worked as a portfolio manager since 1989 and joined the team in 1990.
Debra A. Hanson, Portfolio Manager, joined the team in 1996. Ms. Hanson assists
with the development and execution of investment strategy and has been with
Scudder since 1983.
August 11, 1997
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Scudder
Bond Portfolio
Balanced Portfolio
Supplement to Prospectus
Dated May 1, 1997
The following modifies the section entitled "POLICIES AND TECHNIQUES APPLICABLE
TO THE PORTFOLIOS" in the Portfolios' prospectus:
ILLIQUID OR RESTRICTED INVESTMENTS
The Portfolios may each invest in illiquid or restricted securities. The absence
of a trading market can make it difficult to ascertain a market value for
illiquid or restricted investments. Disposing of illiquid or restricted
investments may involve time-consuming negotiation and legal expenses, and it
may be difficult or impossible for a Portfolio to sell them promptly at an
acceptable price. In addition, for the Bond Portfolio and the Balanced
Portfolio, some restricted securities purchased may be considered liquid despite
resale restrictions, since they can be resold under a rule or policies of the
Securities and Exchange Commission. The Adviser determines which restricted
securities will be considered liquid pursuant to procedures adopted by the
Fund's Board of Trustees.
August 11, 1997
Capital Growth Portfolio
Supplement to Prospectus
Dated May 1, 1997
The following modifies the section entitled "INVESTMENT ADVISER" in the
Portfolio's prospectus:
For its advisory services to the Portfolio, the Adviser receives compensation
monthly at the following annual rate:
Percent of the average
daily net asset
Portfolio values of the Portfolio
--------- -----------------------
Capital Growth Portfolio .475%*
* Effective August 4, 1997, for any calendar month during which the average
daily net assets of Capital Growth Portfolio exceed $500,000,000, the fee
payable for that month, with respect to the excess over $500,000,000, is
calculated at an annual rate of .450%.
August 4, 1997
<PAGE>
International Portfolio
Supplement to Prospectus
Dated May 1, 1997
The following modifies the section entitled "INVESTMENT ADVISER" in the
Portfolio's prospectus:
For its advisory services to the Portfolio, the Adviser receives compensation
monthly at the following annual rate:
Percent of the average
daily net asset
Portfolio values of the Portfolio
--------- -----------------------
International Portfolio .875%*
* Until August 7, 1997, for any calendar month during which the average daily
net assets of International Portfolio exceeded $500,000,000, the fee
payable for that month, with respect to the excess over $500,000,000, was
calculated at an annual rate of .775%. As a result, the Adviser received
compensation at an annual rate of .863% for the fiscal year ended December
31, 1996. Effective August 7, 1997, for any calendar month during which the
average daily net assets of International Portfolio exceed $500,000,000,
the fee payable for that month, with respect to the excess over
$500,000,000, is calculated at an annual rate of .725%.
August 7, 1997
INTERNATIONAL PORTFOLIO
Lead Portfolio Manager Irene T. Cheng sets International Portfolio's investment
strategy and has responsibility for the Portfolio's daily operation. Ms. Cheng,
who joined Scudder in 1993 and the team in 1997, has over 13 years of experience
in the investment industry. Nicholas Bratt, Portfolio Manager, has been a member
of the Portfolio team since 1987 and has 23 years of experience in worldwide
investing, including 21 years of experience as a portfolio manager. Mr. Bratt,
who has worked at Scudder since 1976, is the head of Scudder's Global Equity
Group. Carol L. Franklin, Portfolio Manager, joined the team in 1989 and has
worked on equity investing at Scudder as a portfolio manager since 1981. Joan
Gregory, Portfolio Manager, focuses on stock selection, a role she has played
since joining Scudder in 1992. Marc Joseph, Portfolio Manager, managed
international portfolios prior to joining Scudder in 1997 and is a member of
Scudder's Global Equity Group where he focuses on managing international equity
portfolios. Mr. Joseph has over 10 years of industry experience. Sheridan
Reilly, Portfolio Manager, joined Scudder in 1995 and the team in 1997. Mr.
Reilly, a member of Scudder's Global Equity Group, has over 10 years of industry
experience and focuses on strategies for global portfolios, currency hedging and
foreign equity markets.
August 11, 1997
