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KEMPER FLOATING RATE FUND
SUPPLEMENT TO THE PROSPECTUS DATED MAY 25, 1999
Kemper Distributors, Inc., the Fund's distributor and administrative services
provider, has agreed to reduce its administrative services fee and distribution
fee to 0% of average daily net assets through June 30, 1999. Scudder Kemper
Investments, Inc., the Fund's investment adviser, has agreed to reimburse the
Fund for other operating expenses (including some organizational and offering
expenses) through that same date. Accordingly, the Fund will maintain an expense
ratio of 0.00% from May 25, 1999 (commencement of operations) through June 30,
1999.
The first sentence under the heading "Use of Proceeds" on page 8 of the
Prospectus is replaced with the following:
The Adviser anticipates that the Fund will invest net proceeds received during
the Fund's first two months of operations in accordance with the Fund's
investment objective and policies by July 30, 1999.
The fifth and sixth sentences under this heading are replaced with the
following:
The precise time frame for these investments will depend on the availability of
Senior Loans, the amount of assets available for investment, and other market
conditions. Pending such investment, the Fund will invest the net proceeds
received during the Fund's first two months of operations in investment-grade
short-term or medium-term debt obligations.
The fourth full paragraph on page 29 is replaced with the following:
The Distributor will compensate firms for orders placed on or before June 30,
1999 at a rate of 4.0% of the aggregate sales price of the shares of the Fund
purchased from the Fund by or through such firms ("Sales Price"). Firms that
submit orders for shares after June 30, 1999 will be compensated at a rate of
3.0% of the Sales Price.
THE DATE OF THIS SUPPLEMENT IS JUNE 2, 1999
KFRF-1A
507874 [LOGO]Printed on recycled paper
