INVESTORS FUND SERIES
SUPPLEMENT TO PROSPECTUS
DATED MAY 1, 1998
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The following text replaces the section entitled "Investment Objectives,
Policies and Risk Factors -- Special Risk Factors -- Foreign Securities" on page
51 in the Prospectus:
Special Risk Factors - Foreign Securities
The Total Return, High Yield, Growth, Small Cap Growth, Investment
Grade Bond, Value+Growth, Blue Chip and Financial Services Portfolio
invest primarily in securities that are publicly traded in the United
States; but, each has discretion to invest a portion of its assets in
foreign securities that are traded principally in securities markets
outside the United States. As a non-fundamental policy, these
Portfolios (other than the Financial Services Portfolio) currently
limit investment in foreign securities not publicly traded in the
United States to 25% of their total assets. The Financial Services
Portfolio may invest up to 30% of its total assets in foreign
securities. The Horizon Portfolios will invest in foreign securities
at a target level normally ranging from 20% to 40% of the allocation
of each Portfolio to equity securities. See "Horizon Portfolios"
above. These Portfolios may also invest without limit in U.S. Dollar
denominated American Depository Receipts ("ADRs") which are bought and
sold in the United States and are not subject to the preceding
limitation. The Value and Small Cap Value Portfolios may invest up to
20% of their assets in securities of foreign companies in the form of
ADRs. High Return Equity may invest up to 20% of its assets in
securities of foreign companies through the acquisition of ADRs as
well as through the purchase of securities of foreign companies that
are publicly traded in the United States. Foreign securities in which
a Portfolio may invest include any type of security consistent with
that Portfolio's investment objective and policies. In connection with
its foreign securities investments, each such Portfolio may, to a
limited extent, engage in foreign currency exchange transactions and
purchase and sell foreign currency options and foreign currency
futures contracts as a hedge and not for speculation. The
International, Global Income, Global Blue Chip, and International
Growth and Income Portfolios may invest without limit in foreign
securities, and may engage in foreign currency exchange transactions
and may purchase and sell foreign currency options and foreign
currency futures contracts. See "Investment Techniques - Options and
Financial Futures Transactions - Foreign Currency Transactions." The
Money Market Portfolio and Government Securities Portfolio, each
within its quality standards, may also invest in securities of foreign
issuers. However, such investments will be in U.S. Dollar denominated
instruments.
The following text replaces the last paragraph of the section entitled
"Investment Objectives, Policies and Risk Factors - Growth and Value Stocks" on
page 49 in the Prospectus:
Growth and Value Stocks
The allocation between growth and value stocks in the Value+Growth and
Horizon Portfolios will be made by the investment manager's
Quantitative Research Department with the help of a proprietary model
that evaluates macro-economic factors such as the strength of the
economy, interest rates and special factors concerning growth and
value stocks. Historically, the performance of growth and value stocks
has tended to be counter-cyclical, i.e., when one was in favor, the
other was out of favor relative to the equity market in general.
Through the allocation process, the investment manager will seek to
weight the Portfolio more heavily in the type of stocks that are
believed to present greater total return opportunities at the time.
The neutral allocation between growth and value stocks would be
50%/50%. Allocations in favor of growth or value normally would not be
expected to exceed 60% for the Horizon Portfolios. For both
Portfolios, the allocation to growth or value may be up to 75% at any
time. Allocation decisions are normally based upon long-term
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considerations and changes would normally be expected to be gradual.
There is no assurance that the allocation process will improve
investment results.
The following text replaces information in the section entitled "Investment
Manager" on page 76 in the Prospectus dated May 1, 1998 for Kemper Horizon 20+
Portfolio, Kemper 10+ Portfolio, Kemper Horizon 5 Portfolio and Kemper
Value+Growth Portfolio.
INVESTMENT MANAGER
Philip S. Fortuna is the lead portfolio manager of the Horizon 20+,
Horizon 10+, Horizon 5 and Value+Growth Portfolios. Mr. Fortuna joined
Scudder Kemper in 1986 and is a Managing Director. He served as
Director of Quantitative Services from 1987 to 1993 and Director of
Investment Operations from 1993 to 1995. From 1995 to 1997, he was
involved in global planning and new product development in addition to
his portfolio management responsibilities. Mr. Fortuna currently
oversees all of Scudder Kemper's quantitative activities.
August 17, 1998
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