Supplement to currently effective Prospectus of each of the
listed funds
Kemper Adjustable Rate U.S. Government Fund
Kemper Aggressive Growth Fund
Kemper Asian Growth Fund
Kemper Blue Chip Fund
Kemper California Tax-Free Income Fund
Kemper Cash Reserves Fund
Kemper Contrarian Fund
Kemper Diversified Income Fund
Kemper Emerging Markets Growth Fund
Kemper Emerging Markets Income Fund
Kemper Europe Fund
Kemper Florida Tax-Free Income Fund
Kemper Global Blue Chip Fund
Kemper Global Income Fund
Kemper Growth Fund
Kemper High Yield Fund
Kemper High Yield Opportunity Fund
Kemper Horizon 10+ Portfolio
Kemper Horizon 20+ Portfolio
Kemper Horizon 5 Portfolio
Kemper Income and Capital Preservation Fund
Kemper Intermediate Municipal Bond Fund
Kemper International Fund
Kemper International Growth and Income Fund
Kemper Latin America Fund
Kemper Michigan Tax-Free Income Fund
Kemper Municipal Bond Fund
Kemper New Jersey Tax-Free Income Fund
Kemper New York Tax-Free Income Fund
Kemper Ohio Tax-Free Income Fund
Kemper Pennsylvania Tax-Free Income Fund
Kemper Quantitative Equity Fund
Kemper Retirement Fund-Series VII
Kemper Short-Intermediate Government Fund
Kemper Small Cap Relative Value Fund
Kemper Small Cap Value Fund
Kemper Small Capitalization Equity Fund
Kemper Technology Fund
Kemper Total Return Fund
Kemper Texas Tax-Free Income Fund
Kemper U.S. Government Securities Fund
Kemper U.S. Growth and Income Fund
Kemper U.S. Mortgage Fund
Kemper Value + Growth Fund
Kemper-Dreman Financial Services Fund
Kemper-Dreman High Return Equity Fund
On December 22, 1997, Zurich Insurance Company ("Zurich") entered into an
agreement with B.A.T Industries p.l.c. ("B.A.T") pursuant to which the financial
services businesses of B.A.T will be combined with Zurich's businesses
(including Zurich's 70% interest in Scudder Kemper Investments, Inc. ("Scudder
Kemper")) to form a new global insurance and financial services company known as
Zurich Financial Services. After the transaction is completed, by way of a dual
holding company structure, current Zurich shareholders will own approximately
57% of the new organization, with the balance owned by B.A.T's current
shareholders.
The transaction is expected to close in the third quarter of 1998. Upon
consummation of the transaction, each Fund's investment management agreement
with Scudder Kemper will be deemed to have been assigned and, therefore, will
terminate. Each Board has approved new investment management agreements with
Scudder Kemper, which are substantially identical to the current investment
management agreements, except for the dates of execution and termination. Each
new investment management agreement is to become effective upon the termination
of the current investment management agreement. Each Board will seek shareholder
approval of the new investment management agreements through a proxy
solicitation that is currently scheduled to conclude in mid-December.
September 1, 1998
KMF-1X
501742
