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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 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.
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*
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Sales Load on Purchases........................................................................ None
Sales Load on Reinvested Dividends............................................................. None
Deferred Sales Load............................................................................ None
Redemption Fees................................................................................ None
Exchange Fee................................................................................... None
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MONEY GOVERNMENT
ANNUAL FUND OPERATING EXPENSES MARKET SECURITIES TAX-EXEMPT
(as a percentage of average net assets) PORTFOLIO PORTFOLIO PORTFOLIO
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Management Fees..................................................... .27% .27% .27%
12b-1 Fees.......................................................... None None None
Other Expenses...................................................... .25% .20% .14%
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Total Operating Expenses............................................ .52% .47% .41%
</TABLE>
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<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 on a Money Market............ $5 $17 $29 $ 65
$1,000 investment, assuming a 5% annual Government Securities... $5 $15 $26 $59
return and redemption at the end of each Tax-Exempt.............. $4 $13 $23 $52
time period:
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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.
EXCHANGING SHARES
Shareholders of the Fund's--Money Market Portfolio who have purchased shares
because they are participants in tax-exempt retirement plans of KFS and its
affiliates may exchange their shares for Class I shares of any "Kemper Mutual
Fund" listed under "Exchanging Shares" in the prospectus to the extent that they
are available through their plan. Conversely, shareholders of Class I shares may
exchange their shares for shares of the Fund's--Money Market Portfolio if the
shareholders of Class I shares have purchased shares because they are
participants in tax-exempt retirement plans of KFS and its affiliates. Exchanges
will be made at the shares' relative net asset values through their plan.
Exchanges are subject to the limitations set forth in the prospectus under
"Exchanging Shares."
July 13, 1995
KMMF-1A 7/95 (LOGO)printed on recycled paper
