Kemper Intermediate Municipal Bond Fund
Kemper Municipal Bond Fund
Kemper California Tax-Free Income Fund
Kemper Florida Tax-Free Income Fund
Kemper New York Tax-Free Income Fund
Kemper Ohio Tax-Free Income Fund
Supplement to Statement of Additional Information
Dated January 1, 2000
Kemper High Yield Fund
Kemper High Yield Opportunity Fund
Kemper Income and Capital Preservation Fund
Kemper High Yield Fund II
Kemper U.S. Mortgage Fund
Kemper Short-Term U.S. Government Fund
Kemper Strategic Income Fund
Kemper U.S. Government Securities Fund
Supplement to Statement of Additional Information
Dated January 1, 2000
The above-listed Funds' non-fundamental investment restrictions have been
amended by a vote of the Board of Trustees for each Fund. The following amended
and restated non-fundamental policies restate in their entirety the
non-fundamental restrictions for each Fund in the section entitled "Investment
Restrictions" in each of the currently effective Statements of Additional
Information. In addition, any reference to these policies elsewhere in the
Statements of Additional Information is hereby amended.
As a matter of non-fundamental policy, each Fund will not:
o For Kemper Intermediate Municipal Bond Fund, Kemper Municipal Bond Fund,
Kemper California Tax-Free Income Fund, Kemper Florida Tax-Free Income
Fund, Kemper New York Tax-Free Income Fund, Kemper Ohio Tax-Free Income
Fund and Kemper U.S. Government Securities Fund:
lend portfolio securities in an amount greater than 5% of its total
assets.
o For Kemper High Yield Fund, Kemper High Yield Opportunity Fund, Kemper
Income and Capital Preservation Fund, Kemper High Yield Fund II, Kemper
U.S. Mortgage Fund, Kemper Short-Term U.S. Government Fund and Kemper
Strategic Income Fund:
lend portfolio securities in an amount greater than one third of its
total assets.
o For Kemper High Yield Fund, Kemper High Yield Opportunity Fund, Kemper
Income and Capital Preservation Fund, Kemper High Yield Fund II, Kemper
U.S. Mortgage Fund, Kemper Short-Term U.S. Government Fund, Kemper
Strategic Income Fund and Kemper U.S. Government Securities Fund:
borrow money in an amount greater than 5% of its total assets, except
(i) for temporary or emergency purposes; and (ii) by engaging in
reverse repurchase agreements, dollar rolls, or other investments or
transactions described in the Fund's registration statement which may
be deemed to be borrowings.
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o For Kemper Intermediate Municipal Bond Fund, Kemper Municipal Bond Fund,
Kemper California Tax-Free Income Fund, Kemper Florida Tax-Free Income
Fund, Kemper New York Tax-Free Income Fund, and Kemper Ohio Tax-Free Income
Fund:
borrow money in an amount greater than 5% of its total assets, except
for temporary or emergency purposes.
o Purchase securities on margin or make short sales, except (i) short sales
against the box, (ii) in connection with arbitrage transactions, (iii) for
margin deposits in connection with futures contracts, options or other
permitted investments, (iv) that transactions in futures contracts and
options shall not be deemed to constitute selling securities short, and (v)
that the Fund may obtain such short-term credits as may be necessary for
the clearance of securities transactions;
o Purchase options, unless the aggregate premiums paid on all such options
held by the Fund at any time do not exceed 20% of its total assets; or sell
put options, if as a result, the aggregate value of the obligations
underlying such put options would exceed 50% of its total assets;
o Enter into futures contracts or purchase options thereon unless immediately
after the purchase, the value of the aggregate initial margin with respect
to such futures contracts entered into on behalf of the Fund and the
premiums paid for such options on futures contracts does not exceed 5% of
the fair market value of the Fund's total assets; provided that in the case
of an option that is in-the-money at the time of purchase, the in-the-money
amount may be excluded in computing the 5% limit; and
o Purchase warrants if as a result, such securities, taken at the lower of
cost or market value, would represent more than 5% of the value of the
Fund's total assets (for this purpose, warrants acquired in units or
attached to securities will be deemed to have no value).
o Invest more than 15% of net assets in illiquid securities.
Date
