KEMPER VARIABLE SERIES:
Kemper Aggressive Growth Portfolio
Kemper Blue Chip Portfolio
Kemper Contrarian Value Portfolio
Kemper Global Blue Chip Portfolio
Kemper Growth Portfolio
Kemper Horizon 20+ Portfolio
Kemper Horizon 10+ Portfolio
Kemper Horizon 5 Portfolio
Kemper Index 500 Portfolio
Kemper International Growth and Income Portfolio
Kemper-Dreman High Return Equity Portfolio
Kemper Global Income Portfolio
Kemper Government Securities Portfolio
Kemper High Yield Portfolio
Kemper Investment Grade Bond Portfolio
Kemper International Portfolio
Kemper Small Cap Growth Portfolio
Kemper Technology Growth Portfolio
Kemper Total Return Portfolio
Kemper Value + Growth Portfolio
Kemper-Dreman Financial Services Portfolio
Kemper Money Market Portfolio
Kemper Small Cap Value Portfolio
KVS Focused Large Cap Growth Portfolio
KVS Growth and Income Portfolio
KVS Growth Opportunities Portfolio
Supplement to Statement of Additional Information
Dated May 1, 1999
As revised October 29, 1999
The above-listed Portfolios' non-fundamental investments restrictions have been
amended by a vote of the Board of Trustees for each Portfolio. The following
amended and restated non-fundamental policies restate in their entirety the
non-fundamental policies in the section entitled "Investment Restrictions" in
the currently effective Statement of Additional Information. In addition, any
reference to these policies elsewhere in the Statement of Additional Information
is hereby amended.
As a matter of non-fundamental policy, each Portfolio except Kemper Money
Market Portfolio will not:
o 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 Purchase securities on margin or make short sales, except (i) short sales
against the box, (ii) in connection with arbitrage transactions, (iii) for
margin deposits in connection with futures contracts, options or other
permitted investments, (iv) that transactions in futures contracts and
options shall not be deemed to constitute selling securities short, and (v)
that the Portfolio may obtain such short-term credits as may be necessary
for the clearance of securities transactions.
o Purchase options, unless the aggregate premiums paid on all such options
held by the Portfolio at any time do not exceed 20% of its total assets; or
sell put options, if as a result, the aggregate value of the obligations
underlying such put options would exceed 50% of its total assets.
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o Enter into futures contracts or purchase options thereon unless immediately
after the purchase, the value of the aggregate initial margin with respect
to such futures contracts entered into on behalf of the Portfolio and the
premiums paid for such options on futures contracts does not exceed 5% of
the fair market value of the Portfolio's total assets; provided that in the
case of an option that is in-the-money at the time of purchase, the
in-the-money amount may be excluded in computing the 5% limit.
o Purchase warrants if as a result, such securities, taken at the lower of
cost or market value, would represent more than 5% of the value of the
Portfolio's total assets (for this purpose, warrants acquired in units or
attached to securities will be deemed to have no value).
o Invest more than 15% of net assets in illiquid securities.
o For all Portfolios except Kemper Global Income Portfolio, Kemper Government
Securities Portfolio, Kemper High Yield Portfolio and Kemper Investment
Grade Bond Portfolio:
enter into either of reverse repurchase agreements or dollar rolls in
an amount greater than 5% of its total assets.
o For Global Blue Chip Portfolio only, lend portfolio securities in an amount
greater than 5% of its total assets.
o For all Portfolios except Kemper Global Blue Chip Portfolio:
lend portfolio securities in an amount greater than one third of its
total assets.
As a matter of non-fundamental policy, the Kemper Money Market Portfolio will
not:
o borrow money in an amount greater than 5% of its total assets,
except for temporary or emergency purposes.
o invest more than 10% of net assets in illiquid securities.
o lend portfolio securities in an amount greater than one third of
its total assets.
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