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 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, new
investment management agreements between each Portfolio and Scudder Kemper were
approved by the Board of Trustees. A special meeting of shareholders (the
"Special Meeting") of the Fund was held in October, 1997, at which time the
shareholders also approved the new investment management agreements. The new
investment management agreements (each an "Investment Management Agreement" and,
collectively, the "Investment Management Agreements") are all effective as of
December 31, 1997 and each will be in effect for an initial term ending on the
same date as would the corresponding previous investment management agreement.
Each Portfolio's Investment Management Agreement is the same in all material
respects as the 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;
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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;
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 borrowing and lending policies have been
amended by the Board of Trustees as follows:
o For Money Market Portfolio: the Portfolio does not currently 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 does not currently 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 Each Portfolio currently does not intend to lend portfolio securities
in an amount greater than 5% of its total assets.
On January 1, 1998, the following lead portfolio managers will assume
responsibility for each listed portfolio's day-to-day operations and overall
investment strategy. This list reflects only new lead portfolio management
responsibilities; these individuals may also serve as lead portfolio managers on
additional funds.
Frank J. Rachwalski, Jr.'s management responsibilities include Money Market
Portfolio. Mr. Rachwalski joined Zurich Kemper in 1973. Mr. Rachwalski has more
than 20 years of experience managing money market portfolios.
Stephen A. Wohler's management responsibilities include Bond Portfolio. Mr.
Wohler has over 17 years of experience managing fixed-income investments and has
been with the Adviser since 1979.
December 31, 1997
