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KEMPER FIXED INCOME FUNDS
Kemper Adjustable Rate U.S. Government Fund
Kemper Cash Reserves Fund*
Kemper Diversified Income Fund
Kemper U.S. Government Securities Fund
Kemper High Yield Fund
Kemper Income and Capital Preservation Fund
Kemper U.S. Mortgage Fund*
Kemper Short-Intermediate Government Fund*
SUPPLEMENT TO PROSPECTUS
DATED DECEMBER 20, 1996
INVESTMENT MANAGER AND UNDERWRITER
Richard L. Vandenberg is the portfolio manager of the Government Fund, the
Mortgage Fund and the Short-Intermediate Government Fund and has served as
portfolio manager or co-manager of those Funds since March, 1996. As reflected
in the prospectus, he is also portfolio co-manager of the Adjustable Rate U.S.
Government Fund. Mr. Vandenberg joined Zurich Kemper Investments, Inc. ("ZKI"),
the investment manager of the Funds, in March, 1996 and is a Senior Vice
President of ZKI and a Vice President of the Government, Mortgage, Adjustable
Rate and Short-Intermediate Government Funds. Prior to joining ZKI, he was a
senior vice president and portfolio manager of an investment management firm. He
received a B.B.A. and M.B.A., both in Finance, Investments and Banking, from the
University of Wisconsin, Madison, Wisconsin.
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* Series of Kemper Portfolios
KFIF-1D (6/20/97)
ZKDI-706066 (6/97) (LOGO)printed on recycled paper
