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KEMPER FLOATING RATE FUND
SUPPLEMENT TO THE PROSPECTUS DATED MAY 25, 1999
Kemper Distributors, Inc. ("KDI"), the Fund's distributor and administrative
services provider, has agreed to reduce its administrative services fee and
distribution fee, and Scudder Kemper Investments, Inc., the Fund's investment
adviser (the "Adviser"), has agreed to reimburse the Fund for other operating
expenses (including some organizational and offering expenses), to the extent
necessary to allow the Fund to maintain a maximum expense ratio of 1.00% from
August 1, 1999 through August 31, 1999. In addition, during this period, KDI and
the Adviser may, in their discretion, reduce fees or reimburse Fund operating
expenses in order to maintain an expense ratio of less than 1.00%. During this
period, KDI may, out of its own assets, continue to compensate broker dealer
firms or other service or administrative firms that provide services and
facilities for their customers or clients who are investors in the Fund.
The following early withdrawal charge ("EWC") waiver category is added in the
second paragraph under the heading "Offering of Shares-Class B Shares" on page
27 of the Prospectus:
The EWC will be waived for repurchases of shares held by shareholders whose
broker or other financial service provider has waived receipt of its commission
on the sale of the shares repurchased.
THE DATE OF THIS SUPPLEMENT IS AUGUST 1, 1999
KFRF-1C
508832 [RECYCLED LOGO] Printed on recycled paper
