KEMPER VARIABLE SERIES
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Kemper Aggressive Growth Portfolio KVS Index 500 Portfolio
Kemper Blue Chip Portfolio Kemper International Portfolio
Kemper Contrarian Value Portfolio Kemper Investment Grade Bond Portfolio
KVS Focused Large Cap Growth Portfolio Kemper New Europe Portfolio
Kemper Global Blue Chip Portfolio Kemper Small Cap Growth Portfolio
Kemper Government Securities Portfolio Kemper Small Cap Value Portfolio
Kemper Growth Portfolio Kemper Strategic Income Portfolio
KVS Growth and Income Portfolio Kemper Technology Growth Portfolio
KVS Growth Opportunities Portfolio Kemper Total Return Portfolio
Kemper High Yield Portfolio Kemper Value+Growth Portfolio
Kemper Horizon 5 Portfolio KVS Dreman Financial Services Portfolio
Kemper Horizon 10+ Portfolio KVS Dreman High Return Equity Portfolio
Kemper Horizon 20+ Portfolio
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The following information supplements the disclosure in the "Additional
Information About Investment Techniques" section of each Statement of Additional
Information for each Portfolio:
Investment of Uninvested Cash Balances. Each Portfolio may have cash balances
that have not been invested in portfolio securities ("Uninvested Cash").
Uninvested Cash may result from a variety of sources, including dividends or
interest received from portfolio securities, unsettled securities transactions,
reserves held for investment strategy purposes, scheduled maturity of
investments, liquidation of investment securities to meet anticipated
redemptions and dividend payments, and new cash received from investors.
Uninvested Cash may be invested directly in money market instruments or other
short-term debt obligations. Pursuant to an Exemptive Order issued by the SEC,
each Portfolio may use Uninvested Cash to purchase shares of affiliated funds
including money market funds, short-term bond funds and Scudder Cash Management
Investment Trust, or one or more future entities for which Scudder Kemper
Investments acts as trustee or investment advisor that operate as cash
management investment vehicles and that are excluded from the definition of
investment company pursuant to section 3(c)(1) or 3(c)(7) of the Investment
Company Act of 1940 (collectively, the "Central Funds") in excess of the
limitations of Section 12(d)(1) of the Investment Company Act. Investment by
each Portfolio in shares of the Central Funds will be in accordance with the
Portfolio's investment policies and restrictions as set forth in its
registration statement.
Certain of the Central Funds comply with rule 2a-7 under the Act. The other
Central Funds are or will be short-term bond funds that invest in fixed-income
securities and maintain a dollar weighted average maturity of three years or
less. Each of the Central Funds will be managed specifically to maintain a
highly liquid portfolio, and access to them will enhance each Portfolio's
ability to manage Uninvested Cash.
Each Portfolio will invest Uninvested Cash in Central Funds only to the extent
that each Portfolio's aggregate investment in the Central Funds does not exceed
25% of its total assets in shares of the Central Funds. Purchase and sales of
shares of Central Funds are made at net asset value.
December 1, 2000
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