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KEMPER MONEY MARKET FUND
SUPPLEMENT TO PROSPECTUS
DATED NOVEMBER 1, 1994
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Kemper Corporation, the parent of Kemper Financial Services, Inc. ("KFS,"
the investment manager for the Fund), has entered into an agreement in principle
with an investor group led by Zurich Insurance Company ("Zurich") pursuant to
which Kemper Corporation would be acquired by the investor group in a merger
transaction. As part of the transaction, Zurich or an affiliate would purchase
KFS.
A definitive agreement is expected in early May, 1995, subject to the
completion the investor group's due diligence. Consummation of the transaction
is subject to a number of contingencies, including approval by the board and
stockholders of Kemper Corporation and the Zurich board and regulatory
approvals. Because the transaction would constitute an assignment of the Fund's
investment management agreement with KFS under the Investment Company Act of
1940, and therefore a termination of such agreement, it is anticipated that KFS
would seek approval of a new agreement from the Fund's Board and shareholders
prior to consummation of the transaction. The transaction is expected to close
early in the fourth quarter of 1995.
After consummation of the transaction, it is anticipated that the KFS
management team and the Kemper Fund portfolio managers would remain in place and
that the Kemper Funds would be operated in the same manner as they are
currently.
The following supplements the indicated sections of the prospectus.
INVESTMENT MANAGER
Effective February 1, 1995, KFS transferred all its duties and
responsibilities as principal underwriter of the Fund to Kemper Distributors,
Inc., a wholly-owned subsidiary of KFS. KFS continues to provide investment
management services.
In late November, 1994, Kemper Corporation announced that the Conseco
merger agreement referred to under "Investment Manager" in the prospectus had
been terminated by mutual consent.
SUMMARY OF EXPENSES
SHAREHOLDER TRANSACTION EXPENSES*
<TABLE>
<S> <C>
Sales Load on Purchases.............................................................. None
Sales Load on Reinvested Dividends................................................... None
Deferred Sales Load.................................................................. None
Redemption Fees...................................................................... None
Exchange Fee......................................................................... None
</TABLE>
<TABLE>
<CAPTION>
MONEY GOVERNMENT
ANNUAL FUND OPERATING EXPENSES MARKET SECURITIES TAX-EXEMPT
(as a percentage of average net assets) PORTFOLIO PORTFOLIO PORTFOLIO
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<S> <C> <C> <C>
Management Fees.............................................. .27% .27% .27%
12b-1 Fees................................................... None None None
Other Expenses............................................... .25% .26% .14%
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Total Operating Expenses..................................... .52% .47% .41%
</TABLE>
<TABLE>
<CAPTION>
EXAMPLE PORTFOLIO 1 YEAR 3 YEARS 5 YEARS 10 YEARS
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<S> <C> <C> <C> <C> <C>
You would pay the following expenses Money Market............ $5 $17 $29 $ 65
on a $1,000 investment, assuming a Government Securities... $5 $15 $26 $59
5% annual return and redemption at Tax-Exempt.............. $4 $13 $23 $52
the end of each time period:
</TABLE>
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* Table does not include $3.00 monthly small account fee. See "How to Sell
Shares."
The purpose of the table above is to assist you in understanding the
various costs and expenses that an investor in the Fund will bear directly or
indirectly. Investment dealers and other firms may independently charge
shareholders additional fees. The Example assumes a 5% annual rate of return
pursuant to requirements of the Securities and Exchange Commission. This
hypothetical rate of return is not intended to be representative of past or
future performance of any Portfolio of the Fund. The Example should not be
considered to be a representation of past or future expenses. Actual expenses
may be greater or lesser than those shown.
April 19, 1995
KMMF-1Z 4/95 (LOGO)printed on recycled paper
