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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 1.45% from
September 1, 1999 through September 30, 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 1.45%.
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 shares repurchased.
THE DATE OF THIS SUPPLEMENT IS SEPTEMBER 1, 1999
KFRF-1D
509451 [RECYCLE LOGO] Printed on recycled paper
