Kemper Global and International Funds
Kemper Asian Growth Fund
Kemper Europe Fund
Kemper Global Income Fund
Kemper International Fund
SUPPLEMENT TO PROSPECTUS
DATED MARCH 1, 1999
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CLASS I SHARES
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The above funds currently offer four classes of shares to provide investors with
different purchasing options. These are Class A, Class B and Class C shares,
which are described in the prospectus, and Class I shares, which are described
in the prospectus as supplemented hereby.
Class I shares are available for purchase exclusively by the following
categories of institutional investors: (1) tax-exempt retirement plans (Profit
Sharing, 401(k), Money Purchase Pension and Defined Benefit Plans) of Scudder
Kemper Investments, Inc. ("Scudder Kemper") and its affiliates and rollover
accounts from those plans; (2) the following investment advisory clients of
Scudder Kemper and its investment advisory affiliates that invest at least $1
million in a Fund: unaffiliated benefit plans, such as qualified retirement
plans (other than individual retirement accounts and self-directed retirement
plans); unaffiliated banks and insurance companies purchasing for their own
accounts; and endowment funds of unaffiliated non-profit organizations; (3)
investment-only accounts for large qualified plans, with a least $50 million in
total plan assets or at least 1000 participants; (4) trust and fiduciary
accounts of trust companies and bank trust departments providing fee based
advisory services that invest at least $1 million in a Fund on behalf of each
trust; (5) policy holders under Zurich-American Insurance Group's collateral
investment program investing at least $200,000 in a Fund; and (6) investment
companies managed by Scudder Kemper that invest primarily in other investment
companies. Class I shares currently are available for purchase only from Kemper
Distributors, Inc. ("KDI"), principal underwriter for the Funds, and, in the
case of category 4 above, selected dealers authorized by KDI. Share certificates
are not available for Class I shares.
The primary distinctions among the classes of each Fund's shares lie in their
initial and contingent deferred sales charge schedules and in their ongoing
expenses, including asset-based sales charges in the form of Rule 12b-1
distribution fees. Class I shares are offered at net asset value without an
initial sales charge and are not subject to a contingent deferred sales charge
or a Rule
March 1, 1999
<PAGE>
12b-1 distribution fee. Also, there is no administrative services fee charged to
Class I shares. As a result of the relatively lower expenses for Class I shares,
the level of income dividends per share (as a percentage of net asset value)
and, therefore, the overall investment return, will typically be higher for
Class I shares than for Class A, Class B and Class C shares.
The following information supplements the indicated sections of the prospectus.
Past performance
The charts and tables contained in the accompanying prospectus provide some
indication of the risks of investing in the funds by illustrating how the funds
have performed from year to year, and comparing this information to a broad
measure of market performance. Of course, past performance is not necessarily an
indication of future performance. Additional financial information for those
funds which currently have Class I shares outstanding is set forth below.
Average Annual Total Returns -- Class I shares
For periods ended
December 31, 1998 One Year Life of Class Inception of Class
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Kemper International Fund 8.79% 12.90% 7/3/95
MSCI EAFE Index 20.33% 10.49% --
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Fee and expense information
This information is designed to help you understand the fees and expenses that
you may pay if you buy and hold shares of the funds.
Shareholder fees: Fees paid directly from your investment.
<TABLE>
<CAPTION>
Maximum Sales Maximum Deferred Maximum Sales
Charge (Load) Sales Charge Charge (Load)
Imposed on (Load) Imposed on
Purchases (as a (as a % of Reinvested
% of offering redemption Dividends/ Redemption Exchange
price) proceeds) Distributions Fee Fee
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Kemper Asian
Growth Fund None None None None None
- --------------------------------------------------------------------------------------------------------------------
Kemper Europe
Fund None None None None None
- --------------------------------------------------------------------------------------------------------------------
Kemper Global
Income Fund None None None None None
- --------------------------------------------------------------------------------------------------------------------
Kemper
International
Fund None None None None None
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Annual fund operating expenses: Expenses that are deducted from fund assets.
<TABLE>
<CAPTION>
Management Distribution (12b-1) Other Total Annual Fund
fee Fees expenses* Operating Expenses*
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Kemper Asian
Growth Fund 0.85% None 2.34% 3.19%
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Kemper Europe
Fund 0.75% None 0.92% 1.67%
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Kemper International
Fund 0.73% None 0.27% 1.00%
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Kemper Global
Income Fund 0.75% None 0.55% 1.30%
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</TABLE>
* Estimated for Kemper Asian Growth Fund, Kemper Europe Fund and Kemper
Global Income Fund since no Class I shares were issued as of their most
recent fiscal year ends.
Example
This example is to help you compare the cost of investing in a fund with the
cost of investing in other mutual funds.
This example illustrates the impact of the above fees and expenses on an account
with an initial investment of $10,000, based on the expenses shown above. It
assumes a 5% annual return, the reinvestment of all dividends and distributions
and "annual fund operating expenses" remaining the same each year. The example
is hypothetical: actual fund expenses and return vary from year to year, and may
be higher or lower than those shown.
Fees and expenses if you sold shares after:
1 Year 3 Years 5 Years 10 Years
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Kemper Asian Growth Fund $322 $983 $1,669 $3,494
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Kemper Europe Fund $170 $526 $907 $1,976
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Kemper International Fund $102 $318 $552 $1,225
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Kemper Global Income Fund $132 $412 $713 $1,568
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<PAGE>
Financial Highlights
No financial information is presented for Class I shares of Kemper Asian Growth
Fund, Kemper Europe Fund and Kemper Global Income Fund since no Class I shares
were issued as of the respective fiscal year end of the funds.
Kemper International Fund
<TABLE>
<CAPTION>
July 3 to
October
Year ended October 31, 31,
CLASS I 1998 1997 1996 1995
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Per share operating performance
Net asset value, beginning of period $12.72 11.99 10.61 10.09
- -------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .11 .07 .10 .04
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Net realized and unrealized gain .03 1.53 1.48 .48
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Total from investment operations .14 1.60 1.58 .52
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Less dividends:
Distribution from net investment
income .15 .19 .15 --
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Distribution from net realized gain .55 .68 .05 --
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Total dividends .70 .87 .20 --
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Net asset value, end of period $12.16 12.72 11.99 10.61
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Total return (not annualized) 1.18% 14.19 15.19 5.15
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Ratios to average net assets (annualized)
Expenses 1.00% 1.04 1.10 .85
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Net investment income 1.00% .69 .88 1.32
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Supplemental data for all classes
Net assets at end of year
(in thousands) $604,684 588,069 472,243 364,708 418,282
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate 105% 76 104 114 103
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</TABLE>
Notes: Total return does not reflect the effect of any sales charges. Per share
data were determined based on average shares outstanding for the years ended
1995, 1996 and 1998, respectively.
Special Features
Shareholders of a Fund's Class I shares may exchange their shares for (i) shares
of Zurich Money Funds -- Zurich Money Market Fund if the shareholders of Class I
shares have purchased shares because they are participants in tax-exempt
retirement plans of Scudder Kemper and its affiliates and (ii) Class I shares of
any other "Kemper Mutual Fund" listed under "Special Features -- Class A Shares
- -- Combined Purchases" in the prospectus. Conversely, shareholders of Zurich
Money Funds -- Zurich Money Market Fund who have purchased shares because they
are participants in tax-exempt retirement plans of Scudder Kemper and its
affiliates may exchange their shares for Class I shares of "Kemper Mutual Funds"
to the extent that they are available through their plan. Exchanges will be made
at the relative net asset values of the shares. Exchanges are subject to the
limitations set forth in the prospectus under "Special Features -- Exchange
Privilege -- General."
