Scudder Variable Life Investment Fund
Money Market Portfolio
Bond Portfolio
Balanced Portfolio
Capital Growth Portfolio
Global Discovery Portfolio
Growth and Income Portfolio
International Portfolio
Supplement to Statement of Additional Information
Dated May 1, 1998
Zurich Insurance Company ("Zurich"), which is the majority owner of each
Portfolio's investment manager, Scudder Kemper Investments, Inc. ("Scudder
Kemper"), has combined its businesses with the financial services businesses of
B.A.T Industries p.l.c. ("B.A.T"). The resulting company, Zurich Financial
Services ("Zurich Financial Services"), has become Zurich's parent company. As a
result of the Zurich-B.A.T transaction, the former shareholders of B.A.T
indirectly own a 43% interest in Zurich through a new holding company, Allied
Zurich p.l.c. This change in ownership of Zurich may be deemed to have caused a
"change in control" of Scudder Kemper, even though Scudder Kemper's operations
will not change as a result. The Investment Company Act of 1940, which regulates
investment companies such as your Portfolio, requires that portfolio
shareholders approve a new investment management agreement whenever there is a
change in control of a fund's investment manager (even in the most technical
sense). Although this transaction will have virtually no effect on the
operations of Scudder Kemper or the Portfolios, each Portfolio's shareholders
approved a new investment management agreement for the Portfolio to assure that
there is no interruption in the services Scudder Kemper provides to the
Portfolio. A special meeting of shareholders (the "special meeting") of each
Portfolio was held on December 16, 1998 at which time the shareholders approved
the new investment management agreements. Each new investment management
agreement (each an "Investment Management Agreement" and, collectively, the
"Investment Management Agreements") is effective as of September 7, 1998 and
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 substantially identical to
the corresponding previous investment management agreement, except for the dates
of execution and termination and, in the case of Capital Growth Portfolio, the
addition of a breakpoint in the fee structure.
Each Portfolio's fundamental lending policy has been amended by a vote of
shareholders at the special meeting. As a matter of fundamental policy, each
Portfolio may not:
o make loans 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.
December 28, 1998
