KEMPER HIGH YIELD FUND
NSAR-A, 1997-05-29
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<PAGE>      PAGE  1
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<PAGE>      PAGE  2
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012 C020001 MO
012 C030001 64105
013 A000001 ERNST & YOUNG LLP
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014 A000001 ZURICH KEMPER DISTRIBUTORS, INC.
014 B000001 8-47765
014 A000002 GRUNTAL SECURITIES, INC.
014 B000002 8-31022
014 A000003 THE GMS GROUP, INC.
014 B000003 8-23936
015 A000001 INVESTORS FIDUCIARY TRUST COMPANY
015 B000001 C
015 C010001 KANSAS CITY
015 C020001 MO
015 C030001 64105
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015 C020002 NY
015 C030002 11245
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<PAGE>      PAGE  3
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020 A000004 SALOMON BROTHERS, INC.
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022 B000001 13-5108880
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022 C000002    596941
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022 A000003 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
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022 A000004 CS FIRST BOSTON CORPORATION
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022 A000008 PRUDENTIAL SECURITIES, INC.
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SIGNATURE   JEROME L. DUFFY                              
TITLE       TREASURER           
 


<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL.  ALL OTHER
INFORMATION IS COMBINED FOR ALL CLASSES.  THIS SCHEDULE CONTAINS SUMMARY
FINANCIAL INFORMATION EXTRACTED FROM THE 1997 SEMIANNUAL REPORT TO
SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000225528
<NAME> KEMPER HIGH YIELD FUND
<SERIES>
   <NUMBER> 001
   <NAME> CLASS A
<MULTIPLIER> 1000
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
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<PERIOD-START>                             OCT-01-1996
<PERIOD-END>                               MAR-31-1997
<INVESTMENTS-AT-COST>                        3,786,527
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</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL.  ALL OTHER
INFORMATION IS COMBINED FOR ALL CLASSES.  THIS SCHEDULE CONTAINS SUMMARY
FINANCIAL INFORMATION EXTRACTED FROM THE 1997 SEMIANNUAL REPORT TO
SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000225528
<NAME> KEMPER HIGH YIELD FUND
<SERIES>
   <NUMBER> 002
   <NAME> CLASS B
<MULTIPLIER> 1000
       
<S>                             <C>
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</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL.  ALL OTHER
INFORMATION IS COMBINED FOR ALL CLASSES.  THIS SCHEDULE CONTAINS SUMMARY
FINANCIAL INFORMATION EXTRACTED FROM THE 1997 SEMIANNUAL REPORT TO
SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000225528
<NAME> KEMPER HIGH YIELD FUND
<SERIES>
   <NUMBER> 003
   <NAME> CLASS C
<MULTIPLIER> 1000
       
<S>                             <C>
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</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL.  ALL OTHER
INFORMATION IS COMBINED FOR ALL CLASSES.  THIS SCHEDULE CONTAINS SUMMARY
FINANCIAL INFORMATION EXTRACTED FROM THE 1997 SEMIANNUAL REPORT TO
SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000225528
<NAME> KEMPER HIGH YIELD FUND
<SERIES>
   <NUMBER> 004
   <NAME> CLASS I
<MULTIPLIER> 1000
       
<S>                             <C>
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<NET-CHANGE-FROM-OPS>                          139,732
<EQUALIZATION>                                 (2,880)
<DISTRIBUTIONS-OF-INCOME>                      (1,466)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                          1,471
<NUMBER-OF-SHARES-REDEEMED>                    (2,151)
<SHARES-REINVESTED>                                165
<NET-CHANGE-IN-ASSETS>                       (124,402)
<ACCUMULATED-NII-PRIOR>                         99,021
<ACCUMULATED-GAINS-PRIOR>                    (149,765)
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                           11,204
<INTEREST-EXPENSE>                                   0
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<AVERAGE-NET-ASSETS>                         4,182,078
<PER-SHARE-NAV-BEGIN>                             8.23
<PER-SHARE-NII>                                    .38
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<PER-SHARE-DIVIDEND>                             (.41)
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<PER-SHARE-NAV-END>                               8.11
<EXPENSE-RATIO>                                    .68
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</TABLE>







          Exhibit 77Q1(e)
          Kemper High Yield Fund
          Form N-SAR for the period ended 03/31/97
          File No. 811-2786
           
                                SUB-ADVISORY AGREEMENT

                                       (Form 2)


               AGREEMENT made this 1st day of December, 1996, by and
          between ZURICH KEMPER INVESTMENTS, INC., a Delaware corporation
          (the "Adviser") and ZURICH INVESTMENT MANAGEMENT LIMITED, an
          English corporation (the "Sub-Adviser").

               WHEREAS, KEMPER HIGH YIELD FUND, a Massachusetts business
          trust (the "Fund") is a management investment company registered
          under the Investment Company Act of 1940; 

               WHEREAS, the Fund has retained the Adviser to render to it
          investment advisory and management services with regard to the
          Fund's sole series (the "initial series") pursuant to an
          Investment Management Agreement (the "Management Agreement"); and

               WHEREAS, the Adviser desires at this time to retain the
          Sub-Adviser to render investment advisory and management services
          with respect to that portion of the portfolio of the Fund's
          initial series allocated to the Sub-Adviser by the Adviser for
          management of foreign securities, including foreign currency
          transactions and related investments, and the Sub-Adviser is
          willing to render such services; 

               NOW THEREFORE, in consideration of the mutual covenants
          hereinafter contained, it is hereby agreed by and between the
          parties hereto as follows:

               1.   The Adviser hereby employs the Sub-Adviser to manage
          the investment and reinvestment of the assets of the initial
          series of the Fund allocated by the Adviser in its sole
          discretion to the Sub-Adviser for management of foreign
          securities, including foreign currency transactions and related
          investments, in accordance with the applicable investment
          objectives, policies and limitations and subject to the
          supervision of the Adviser and the Board of Trustees of the Fund
          for the period and upon the terms herein set forth, and to place
          orders for the purchase or sale of portfolio securities for the
          Fund's account with brokers or dealers selected by the
          Sub-Adviser; and, in connection therewith, the Sub-Adviser is
          authorized as the agent of the Fund to give instructions to the
          Custodian of the Fund as to the deliveries of securities and
          payments of cash for the account of the Fund.  In connection with
          the selection of such brokers or dealers and the placing of such
          orders, the Sub-Adviser is directed to seek for the Fund best
          execution of orders.  Subject to such policies as the Board of












          Trustees of the Fund determines and subject to satisfying the
          requirements of Section 28(e) of the Securities Exchange Act of
          1934, the Sub-Adviser shall not be deemed to have acted
          unlawfully or to have breached any duty, created by this
          Agreement or otherwise, solely by reason of its having caused the
          Fund to pay a broker or dealer an amount of commission for
          effecting a securities transaction in excess of the amount of
          commission another broker or dealer would have charged for
          effecting that transaction, if the Sub-Adviser determined in good
          faith that such amount of commission was reasonable in relation
          to the value of the brokerage and research services provided by
          such broker or dealer viewed in terms of either that particular
          transaction or the Sub-Adviser's overall responsibilities with
          respect to the clients of the Sub-Adviser as to which the
          Sub-Adviser exercises investment discretion.  The Adviser
          recognizes that all research services and research that the
          Sub-Adviser receives are available for all clients of the
          Sub-Adviser, and that the Fund and other clients of the
          Sub-Adviser may benefit thereby.  The investment of funds shall
          be subject to all applicable restrictions of the Agreement and
          Declaration of Trust and By-Laws of the Fund as may from time to
          time be in force.

               The Sub-Adviser accepts such employment and agrees during
          such period to render such investment management services, to
          furnish related office facilities and equipment and clerical,
          bookkeeping and administrative services for the Fund, to permit
          any of its officers or employees to serve without compensation as
          trustees or officers of the Fund if elected to such positions and
          to assume the obligations herein set forth for the compensation
          herein provided.  The Sub-Adviser shall for all purposes herein
          provided be deemed to be an independent contractor and, unless
          otherwise expressly provided or authorized, shall have no
          authority to act for or represent the Fund or the Adviser in any
          way or otherwise be deemed an agent of the Fund or the Adviser. 
          It is understood and agreed that the Sub-Adviser, by separate
          agreements with the Fund, may also serve the Fund in other
          capacities.

               The Sub-Adviser will keep the Fund and the Adviser informed
          of developments materially affecting the Fund and shall, on the
          Sub-Adviser's own initiative and as reasonably requested by the
          Adviser or the Fund, furnish to the Fund and the Adviser from
          time to time whatever information the Adviser reasonably believes
          appropriate for this purpose.

               The Sub-Adviser agrees that, in the performance of the
          duties required of it by this Agreement, it will comply with the
          Investment Advisers Act of 1940 and the Investment Company Act of
          1940, and all rules and regulations thereunder, and all
          applicable laws and regulations and with any applicable


                                         -2-












          procedures adopted by the Fund's Board of Trustees and identified
          in writing to the Sub-Adviser.

               The Sub-Adviser shall provide the Adviser with such
          investment portfolio accounting and shall maintain and provide
          such detailed records and reports as the Adviser may from time to
          time reasonably request, including without limitation, daily
          processing of investment transactions and cash positions,
          periodic valuations of investment portfolio positions as required
          by the Adviser, monthly reports of the investment portfolio and
          all investment transactions and the preparation of such reports
          and compilation of such data as may be required by the Adviser to
          comply with the obligations imposed upon it under Management
          Agreement.

               The Sub-Adviser shall provide adequate security with respect
          to all materials, records, documents and data relating to any of
          its responsibilities pursuant to this Agreement including any
          means for the effecting of securities transactions.

               The Sub-Adviser agrees that it will make available to the
          Adviser and the Fund promptly upon their request copies of all of
          its investment records and ledgers with respect to the Fund to
          assist the Adviser and the Fund in monitoring compliance with the
          Investment Company Act of 1940 and the Investment Advisers Act of
          1940, as well as other applicable laws.  The Sub-Adviser will
          furnish the Fund's Board of Trustees such periodic and special
          reports with respect to the Fund's portfolio as the Adviser or
          the Board of Trustees may reasonably request.

               In compliance with the requirements of Rule 31a-3 under the
          Investment Company Act of 1940, the Sub-Adviser hereby agrees
          that any records that it maintains for the Fund are the property
          of the Fund and further agrees to surrender promptly to the Fund
          copies of any such records upon the Fund's request.  The Sub-
          Adviser further agrees to preserve for the periods prescribed by
          Rule 31a-2 under the Investment Company Act of 1940 any records
          with respect to the Sub-Adviser's duties hereunder required to be
          maintained by Rule 31a-1 under the such Act to the extent that
          the Sub-Adviser prepares and maintains such records pursuant to
          this Agreement and to preserve the records required by Rule 204-2
          under the Investment Advisers Act of 1940 for the period
          specified in that Rule.

               The Sub-Adviser agrees that it will immediately notify the
          Adviser and the Fund in the event that the Sub-Adviser:  (i)
          becomes subject to a statutory disqualification that prevents the
          Sub-Adviser from serving as an investment adviser pursuant to
          this Agreement; or (ii) is or expects to become the subject of an
          administrative proceeding or enforcement action by the United
          States Securities and Exchange Commission, the Investment


                                         -3-












          Management Regulatory Organization ("IMRO") or other regulatory
          authority.

               The Sub-Adviser represents that it is an investment adviser
          registered under the Investment Advisers Act of 1940 and other
          applicable laws and it is regulated by IMRO and will treat the
          Fund as a Non-Private Customer as defined by IMRO.  The Sub-
          Adviser agrees to maintain the completeness and accuracy of its
          registration on Form ADV in accordance with all legal
          requirements relating to that Form.  The Sub-Adviser acknowledges
          that it is an "investment adviser" to the Fund within the meaning
          of the Investment Company Act of 1940 and the Investment Advisers
          Act of 1940.

               The Sub-Adviser shall be responsible maintaining an
          appropriate compliance program to ensure that the services
          provided by it under this Agreement are performed in a manner
          consistent with applicable laws and the terms of this Agreement.
          Furthermore, the Sub-Adviser shall maintain and enforce a Code of
          Ethics that is in form and substance satisfactory to the Adviser. 
          Sub-Adviser agrees to provide such reports and certifications
          regarding its compliance  program as the Adviser or the Fund
          shall reasonably request from time to time.  

               2.   In the event that there are, from time to time, one or
          more additional series of the Fund with respect to which the
          Adviser desires to retain the Sub-Adviser to render investment
          advisory and management services hereunder, the Adviser shall
          notify the Sub-Adviser in writing.  If the Sub-Adviser is willing
          to render such services, it shall notify the Adviser in writing
          whereupon such additional series shall become subject to this
          Agreement.

               3.   For the services and facilities described in Section 1,
          the Adviser  will pay to the Sub-Adviser, at the end of each
          calendar month, a sub-advisory fee computed at an annual rate of
          .30% of that portion of the average daily net assets of the
          initial series of the Fund that is allocated by the Adviser to
          the Sub-Adviser for management. 

               For the month and year in which this Agreement becomes
          effective or terminates, there shall be an appropriate proration
          on the basis of the number of days that the Agreement is in
          effect during the month and year, respectively.

               4.   The services of the Sub-Adviser under this Agreement
          are not to be deemed exclusive, and the Sub-Adviser shall be free
          to render similar services or other services to others so long as
          its services hereunder are not impaired thereby.

               5.   The Sub-Adviser shall arrange, if desired by the Fund,
          for officers or employees of the Sub-Adviser to serve, without

                                         -4-












          compensation from the Fund, as trustees, officers or agents of
          the Fund if duly elected or appointed to such positions and
          subject to their individual consent and to any limitations
          imposed by law.

               6.    The net asset value for each series of the Fund
          subject to this Agreement shall be calculated  as the Board of
          Trustees of the Fund may determine from time to time in
          accordance with the provisions of the Investment Company Act of
          1940.  On each day when net asset value is not calculated, the
          net asset value of a series shall be deemed to be the net asset
          value of such series as of the close of business on the last day
          on which such calculation was made for the purpose of the
          foregoing computations.

               7.   Subject to applicable statutes and regulations, it is
          understood that certain trustees, officers or agents of the Fund
          are or may be interested in the Sub-Adviser as officers,
          directors, agents, shareholders or otherwise, and that the
          officers, directors, shareholders and agents of the Sub-Adviser
          may be interested in the Fund otherwise than as a trustee,
          officer or agent.

               8.   The Sub-Adviser shall not be liable for any error of
          judgment or of law or for any loss suffered by the Fund or the
          Adviser in connection with the matters to which this Agreement
          relates, except loss resulting from willful misfeasance, bad
          faith or gross negligence on the part of the Sub-Adviser in the
          performance of its obligations and duties or by reason of its
          reckless disregard of its obligations and duties under this
          Agreement.

               9.   This Agreement shall become effective with respect to
          the initial series of the Fund on the date hereof and shall
          remain in full force until March 1, 1998, unless sooner
          terminated as hereinafter provided.  This Agreement shall
          continue in force from year to year thereafter with respect to
          each such series, but only as long as such continuance is
          specifically approved for each series at least annually in the
          manner required by the Investment Company Act of 1940 and the
          rules and regulations thereunder; provided, however, that if the
          continuation of this Agreement is not approved for a series, the
          Sub-Adviser may continue to serve in such capacity for such
          series in the manner and to the extent permitted by the
          Investment Company Act of 1940 and the rules and regulations
          thereunder.

               This Agreement shall automatically terminate in the event of
          its assignment or in the event of the termination of the
          Management Agreement and may be terminated at any time with
          respect to any series subject to this Agreement without the
          payment of any penalty by the Adviser or by the Sub-Adviser on

                                         -5-












          sixty (60) days written notice to the other party.  The Fund may
          effect termination with respect to any such series without
          payment of any penalty by action of the Board of Trustees or by
          vote of a majority of the outstanding voting securities of such
          series on sixty (60) days written notice to the Adviser and the
          Sub-Adviser.

               This Agreement may be terminated with respect to any series
          at any time without the payment of any penalty by the Board of
          Trustees of the Fund, by vote of a majority of the outstanding
          voting securities of such series or by the Adviser in the event
          that it shall have been established by a court of competent
          jurisdiction that the Sub-Adviser or any officer or director of
          the Sub-Adviser has taken any action which results in a breach of
          the covenants of the Sub-Adviser set forth herein.

               The terms "assignment" and "vote of a majority of the
          outstanding voting securities" shall have the meanings set forth
          in the Investment Company Act of 1940 and the rules and
          regulations thereunder.

               Termination of this Agreement shall not affect the right of
          the Sub-Adviser to receive payments on any unpaid balance of the
          compensation described in Section 3 earned prior to such
          termination.

               10.  If any provision of this Agreement shall be held or
          made invalid by a court decision, statute, rule or otherwise, the
          remainder shall not be thereby affected.

               11.  Any notice under this Agreement shall be in writing,
          addressed and delivered or mailed, postage prepaid, to the other
          party at such address as such other party may designate for the
          receipt of such notice.

               12.  This Agreement shall be construed in accordance with
          applicable federal law and the laws of the State of Illinois.
















                                         -6-












               13.  This Agreement is the entire contract between the
          parties relating to the subject matter hereof and supersedes all
          prior agreements between the parties relating to the subject
          matter hereof.

               IN WITNESS WHEREOF, the Adviser and the Sub-Adviser have
          caused this Agreement to be executed as of the day and year first
          above written.

                                      ZURICH KEMPER INVESTMENTS, INC.


                                      By:  /s/ Patrick H. Dudasik
                                         --------------------------------

                                      Title:  Senior Vice President
                                            -----------------------------


                                      ZURICH INVESTMENT MANAGEMENT LIMITED 


                                      By:  /s/ Dennis H. Ferro
                                         --------------------------------

                                      Title:  Managing Director
                                            -----------------------------


























                                         -7-









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