SCUDDER [LOGO]
Scudder Pathway Series:
Conservative Portfolio
Balanced Portfolio
Growth Portfolio
Supplement to Prospectus
Dated February 1, 1998
The following text is inserted in the "Description of the Underlying Scudder
Funds" section on page 11:
Scudder Corporate Bond Fund is a diversified investment company which seeks a
high level of current income through investment primarily in investment-grade
corporate debt securities. The Fund invests in a broad range of
investment-grade, income producing securities and, to a lesser extent, below
investment-grade bonds.
The Fund invests, under normal market conditions, at least 65% of its total
assets in investment-grade debt securities. Investment-grade securities are
those that are rated Aaa, Aa, A, or Baa by Moody's Investors Service ("Moody's")
or AAA, AA, A, or BBB by Standard & Poor's Corporation ("S&P"), or if unrated,
are of equivalent quality as determined by the Adviser. In addition, the Fund
may invest up to 35% of its net assets in high yield, below investment-grade
securities. Below investment-grade securities are those rated lower than Baa or
BBB. Below investment-grade securities are considered predominantly speculative
with respect to their capacity to pay interest and repay principal. They
generally involve a greater risk of default and, at times, can have more price
volatility than higher rated securities. The Fund invests primarily in
intermediate-term corporate bonds, but can also hold short-term and long-term
issues. The dollar-weighted average maturity of the Fund's portfolio is expected
to range from five to ten years. Longer-term bonds generally are more volatile
than bonds with shorter maturities. While the Fund emphasizes corporate bonds
and notes, it can also invest in U.S. Treasury and Agency securities,
convertible and preferred securities, debt securities issued by real estate
investment trusts ("REITs"), dollar rolls, trust preferred securities,
mortgage-backed and other asset-backed securities, zero coupon securities,
dollar-denominated debt of international agencies or investment-grade foreign
institutions, American Depositary Receipts and other depositary receipts, and
money market instruments such as commercial paper, bankers acceptances, and
certificates of deposit issued by domestic and foreign branches of U.S. banks.
The Fund may invest up to 20% of total assets in foreign debt securities
denominated in currencies other than the U.S. dollar. While it is anticipated
that the majority of the Fund's foreign investments will be denominated in the
U.S. dollar, the Fund may invest, within the aforementioned limit, in foreign
bonds denominated in local currencies, including those issued in emerging
markets. The Fund considers "emerging markets" to include any country that is
defined as an emerging or developing economy by any one of the International
Bank for Reconstruction and Development (i.e., the World Bank), the
International Finance Corporation or the United Nations or its authorities. The
Fund may also invest in when-issued securities, indexed securities, repurchase
agreements, reverse repurchase agreements, illiquid securities, and may engage
in strategic transactions.
August 31, 1998
