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 Statement of Additional Information
Dated May 1, 1997
Scudder Variable Life Investment Fund's investment adviser, Scudder, Stevens &
Clark, Inc. ("Scudder"), and Zurich Insurance Company ("Zurich"), an
international insurance and financial services organization, have formed a new
global investment organization by combining Scudder's business with that of
Zurich's subsidiary, Zurich Kemper Investments, Inc., and Scudder has changed
its name to Scudder Kemper Investments, Inc. ("Scudder Kemper" or the
"Adviser"). As a result of the transaction, Zurich owns approximately 70% of
Scudder Kemper, with the balance owned by Scudder Kemper's officers and
employees. Scudder Kemper now manages in excess of $200 billion in assets.
The transaction between Scudder and Zurich resulted in the termination of each
Portfolio's investment management agreement with Scudder. However, a new
investment management agreement between each Portfolio and Scudder Kemper was
approved by the Board of Trustees. A special meeting of shareholders (the
"Special Meeting") of each Portfolio was held in October 1997, at which time the
shareholders also approved the Portfolio's new investment management agreements.
Each new investment management agreement (each an "Investment Management
Agreement" and, collectively, the "Investment Management Agreements") is
effective as of December 31, 1997 and will be in effect for an initial term
ending on the same date as would its corresponding previous investment
management agreement.
Each Portfolio's Investment Management Agreement is the same in all material
respects as its corresponding previous investment management agreement, except
that Scudder Kemper is the new investment adviser to each Portfolio.
Each Portfolio's fundamental policies have been amended by a vote of
shareholders at the Special Meeting. Following is a list of each Portfolio's
amended and restated fundamental policies. As a matter of fundamental policy,
each Portfolio will not:
o borrow money, except as permitted under the Investment Company Act
of 1940, as amended, and as interpreted or modified by regulatory
authority having jurisdiction, from time to time;
o issue senior securities, except as permitted under the Investment
Company Act of 1940, as amended, and as interpreted or modified by
regulatory authority having jurisdiction, from time to time;
o concentrate its investments in a particular industry, as that term
is used in the Investment Company Act of 1940, as amended, and as
interpreted or modified by regulatory authority having jurisdiction,
from time to time;
o purchase physical commodities or contracts relating to physical
commodities;
o engage in the business of underwriting securities issued by others,
except to the extent that the Portfolio may be deemed to be an
underwriter in connection with the disposition of portfolio
securities;
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o purchase or sell real estate, which term does not include securities
of companies which deal in real estate or mortgages or investments
secured by real estate or interests therein, except that the
Portfolio reserves freedom of action to hold and to sell real estate
acquired as a result of the Portfolio's ownership of securities;
o make loans to other persons, except (i) loans of portfolio
securities, and (ii) to the extent that entry into repurchase
agreements and the purchase of debt instruments or interests in
indebtedness in accordance with the Portfolio's investment objective
and policies may be deemed to be loans.
Each Portfolio's non-fundamental policies have been amended by the Board of
Trustees as follows:
o For Money Market Portfolio: the Portfolio currently does not intend
to borrow money in an amount greater than 5% of its total assets,
except for temporary or emergency purposes.
o For all other Portfolios: the Portfolio currently does not intend to
borrow money in an amount greater than 5% of its total assets,
except (i) for temporary or emergency purposes and (ii) by engaging
in reverse repurchase agreements, dollar rolls, or other investments
or transactions described in the Portfolio's registration statement
which may be deemed to be borrowings.
o For all Portfolios (except Money Market Portfolio and Bond
Portfolio): the Portfolio currently does not intend to enter into
either of reverse repurchase agreements or dollar rolls in an amount
greater than 5% of its total assets;
o For all Portfolios (except Money Market Portfolio): the Portfolio
currently does not intend to purchase securities on margin or make
short sales, except (i) short sales against the box, (ii) in
connection with arbitrage transactions, (iii) for margin deposits in
connection with futures contracts, options or other permitted
investments, (iv) that transactions in futures contracts and options
shall not be deemed to constitute selling securities short, and (v)
that the Portfolio may obtain such short-term credits as may be
necessary for the clearance of securities transactions;
o For all Portfolios (except Money Market Portfolio): the Portfolio
currently does not intend to purchase options, unless the aggregate
premiums paid on all such options held by the Portfolio at any time
do not exceed 20% of its total assets; or sell put options, if as a
result, the aggregate value of the obligations underlying such put
options would exceed 50% of its total assets;
o For all Portfolios (except Money Market Portfolio): the Portfolio
currently does not intend to enter into futures contracts or
purchase options thereon, unless immediately after the purchase, the
value of the aggregate initial margin with respect to such futures
contracts entered into on behalf of the Portfolio and the premiums
paid for such options on futures contracts does not exceed 5% of the
fair market value of the Portfolio's total assets; provided that in
the case of an option that is in-the-money at the time of purchase,
and in-the-money amount may be excluded in computing the 5% limit;
o For all Portfolios (except Money Market Portfolio): the Portfolio
currently does not intend to purchase warrants if as a result, such
securities, taken at the lower of cost or market value, would
represent more than 5% of the value of the Portfolio's total assets
(for this purpose, warrants acquired in units or attached to
securities will be deemed to have no value);
o Each Portfolio currently does not intend to lend portfolio
securities in an amount greater than 5% of its total assets.
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Compensation of Trustees
The information contained in the following chart replaces the chart in the
currently effective Statement of Additional Information. The following table
shows the aggregate compensation received by each independent Trustee during
1996 from the Trust and from all Scudder Funds as a group. Please refer to the
section titled "REMUNERATION--Compensation of Officers and Trustees" in the
Statement of Additional Information.
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Total Compensation
From the Trust and
Fund Complex Paid
Name of Trustee Aggregate Compensation to Trustee
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Dr. Kenneth Black, Jr. $26,233 $ 26,233 (7 Funds)
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Dr. Rosita P. Chang $26,233 $ 26,233 (7 Funds)
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Peter B. Freeman $16,483 $131,734 (33 Funds)
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Dr. J.D. Hammond $26,233 $ 26,233 (7 Funds)
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TRUSTEES
Name, Age,
Address of Trustees Principal Occupation**
------------------- ----------------------
Dr. Kenneth Black, Jr. (72) Regents' Professor Emeritus, Georgia
Educational Foundation, Inc. State University; Editor, Journal of
35 Broad Street American Society of CLU ChFC.
11th Floor, Room 1144
Atlanta, GA 30303
Dr. Rosita P. Chang (42) Professor of Finance, University of
PACAP Research Center Rhode Island
College of Business Administration
University of Rhode Island
7 Lippitt Road
Kingston, RI 02881
Peter B. Freeman (65) Corporate Director and Trustee
100 Alumni Avenue
Providence, RI 02906
Dr. J. D. Hammond (63) Dean, Smeal College of Business
801 Business Administration Administration, Pennsylvania State
Building University
Pennsylvania State University
University Park, PA 16801
Daniel Pierce * (63) + Chairman of the Board and Managing
Director of Scudder Kemper
Investments, Inc.
* Mr. Pierce is considered by the Trust and its counsel to be an "interested
person" of the Adviser or of the Trust , within the meaning of the
Investment Company Act of 1940, as amended.
** Unless otherwise stated, the Trustees have been associated with their
respective companies for more than five years, but not necessarily in the
same capacity.
+ Address: Two International Place, Boston, Massachusetts
February 6, 1998
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