SCUDDER [LOGO]
December 31, 1996
Dear Scudder Investor,
The prospectus supplement on the reverse
side, for Scudder Pathway Series: Balanced
Portfolio, is intended to provide corrected
performance information for the Scudder
Managed Retirement Trust-Balanced (the
"MRT/Balanced") for the 1-year period ended
October 31, 1996.
If you have any questions, please call
us at 1-800-225-2470, between 8 a.m. and 8
p.m. eastern time, Monday through Friday. We
will be happy to assist you.
Sincerely,
/s/David S. Lee
David S. Lee
President, Scudder Investor Services, Inc.
This letter is for explanatory purposes and
is not part of the prospectus supplement on
the reverse side.
(over please)
<PAGE>
SCUDDER [LOGO]
Scudder Pathway Series:
Balanced Portfolio
Supplement to Prospectus
dated November 15, 1996
The following text modifies the final
paragraph of the section entitled
"Performance information."
Provided below are performance figures for
the Scudder Managed Retirement Trust-Balanced
(the "MRT/Balanced"), a collective investment
trust for defined contribution plans offered
by Scudder Trust Company, an affiliate of the
Adviser. MRT/Balanced invests its assets
within the Scudder Family of Funds and has
the same investment adviser, same lead
portfolio manager and substantially similar
investment objectives, policies and
strategies as the Portfolio. Unlike the
Portfolio, however, the MRT/Balanced imposes
a trustee fee and an audit fee at the trust
level. Of course, the following performance
figures are not necessarily indicative of the
future performance of the Portfolio.
Average Annual Total Return for periods
ended October 31, 1996
1 Year 3 Years Life of Fund
13.89% 9.51% 10.89%*
* For the period beginning August 31, 1991.
December 31, 1996
