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INVESTORS FUND SERIES
Kemper Money Market Portfolio
Kemper Total Return Portfolio
Kemper High Yield Portfolio
Kemper Growth Portfolio
Kemper Government Securities Portfolio
Kemper International Portfolio
Kemper Small Cap Growth Portfolio
Kemper Investment Grade Bond Portfolio
Kemper Value Portfolio
Kemper Small Cap Value Portfolio
Kemper Value+Growth Portfolio
Kemper Horizon 20+ Portfolio
Kemper Horizon 10+ Portfolio
Kemper Horizon 5 Portfolio
Kemper Blue Chip Portfolio
Kemper Global Income Portfolio
SUPPLEMENT TO PROSPECTUS
DATED MAY 1, 1997
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INVESTMENT MANAGERS
Pursuant to the terms of an agreement, Zurich Insurance Company ("Zurich"), the
parent of the Fund's investment adviser, Zurich Kemper Investments, Inc. ("ZKI")
or, for Kemper Value Portfolio and Kemper Small Cap Value Portfolio, Zurich
Kemper Value Advisers, Inc. ("ZKVA"), and Scudder, Stevens & Clark, Inc.
("Scudder") have formed a new global investment organization by combining
Scudder's business with that of ZKI and that of ZKVA, and Scudder has changed
its name to Scudder Kemper Investments, Inc. ("Scudder Kemper"). As a result of
the transaction, Zurich owns approximately 70% of Scudder Kemper, with the
balance owned by Scudder Kemper's officers and employees. Scudder Kemper, 280
Park Avenue, 40th floor, New York, New York 10017, now manages in excess of $200
billion.
Because the transaction between Scudder and Zurich resulted in the assignment of
the Fund's investment management agreement between ZKI or, for Kemper Value
Portfolio and Kemper Small Cap Value Portfolio, ZKVA, and the Fund, the
agreement was deemed to be automatically terminated upon consummation of the
transaction. In anticipation of the transaction, however, a new investment
management agreement for each Portfolio between the Fund and Scudder Kemper was
approved by the Fund's Board of Trustees. A special meeting of shareholders (the
"Special Meeting") of the Fund was held in December, 1997, at which time the
shareholders also approved a new investment management agreement. The new
investment management agreement (the "Investment Management Agreement") is
effective as of December 31, 1997 and will be in effect for an initial term
ending on the same date as would the previous investment management agreement.
Each Portfolio's Investment Management Agreement is substantially similar to the
investment management agreement terminated by the transaction, except that
Scudder Kemper is the new investment adviser to the Fund and the management fee
is calculated monthly at 1/12 of the applicable annual rate based upon the
average daily net assets for such month. In addition, for Portfolios investing
in foreign securities, except for Kemper International Portfolio and Kemper
Global Income Portfolio, each Portfolio's respective sub-advisory agreement with
Zurich Investment Management Limited ("ZIML") has been terminated and Scudder
Kemper has assumed the duties previously performed by ZIML under each such
Portfolio's respective sub-advisory agreement. For Kemper Value+Growth
Portfolio, Kemper Horizon 20+ Portfolio, Kemper Horizon 10+ Portfolio, and
Kemper Horizon 5 Portfolio, each Portfolio's respective sub-advisory agreement
with ZKVA has been terminated and Scudder Kemper has assumed the duties
previously performed by ZKVA under each Portfolio's respective sub-advisory
agreement.
In addition, under a separate agreement between the Fund and Scudder Fund
Accounting Corporation ("SFAC"), a subsidiary of Scudder Kemper, SFAC, rather
than the Fund's investment manager, will compute the net asset value for each
Portfolio. SFAC does not charge the Fund for this service; however, subject to
Board approval, at some time in the future, SFAC may seek payment for its
services under this agreement.
Thomas Sassi serves as a co-manager of Kemper Value Portfolio. Information
regarding Mr. Sassi is located in the Fund's prospectus.
CAPITAL STRUCTURE AND GENERAL INFORMATION
The Fund's Agreement and Declaration of Trust has been amended to allow the
establishment of a multiple class fund structure. This would permit the Fund to
issue classes that would differ as to the allocation of certain expenses, such
as distribution and administrative expenses, permitting, among other things,
different levels of services or methods of distribution among various classes.
Currently, the Fund does not offer a multi-class fund structure, but it may
adopt such a structure at a future date.
December 31, 1997
IFS-1F (LOGO)PRINTED ON RECYCLED PAPER
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INVESTORS FUND SERIES
Kemper Money Market Portfolio ("KMMP")
Kemper Total Return Portfolio ("KTRP")
Kemper High Yield Portfolio ("KHYP")
Kemper Growth Portfolio ("KGP")
Kemper Government Securities Portfolio ("KGSP")
Kemper International Portfolio ("KIP")
Kemper Small Cap Growth Portfolio ("KSCGP")
Kemper Investment Grade Bond Portfolio ("KIGBP")
Kemper Value Portfolio ("KVP")
Kemper Small Cap Value Portfolio ("KSCVP")
Kemper Value+Growth Portfolio ("KVGP")
Kemper Horizon 20+Portfolio ("KH20P")
Kemper Horizon 10+Portfolio ("KH10P")
Kemper Horizon 5 Portfolio ("KH5P")
Kemper Blue Chip Portfolio ("KBCP")
Kemper Global Income Portfolio ("KGIP")
SUPPLEMENT TO STATEMENT OF
ADDITIONAL INFORMATION
MAY 1, 1997
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INVESTMENT RESTRICTIONS -- DELETIONS
The following non-fundamental investment restrictions are deleted:
(with respect to KMMP, KTRP, KHYP, KGP, KGSP and KIP), each Portfolio may
not:
(i) Purchase or retain the securities of any issuer if any of the officers,
trustees or directors of the Fund, or its investment advisor owns
beneficially more than 1/2 of 1% (.50% for KMMP, KTRP, KHYP, KGP and KGSP)
of the securities of such issuer and together own more than 5% of the
securities of such issuer.
(with respect to KSCGP, KIGBP, KVP, KSCVP, KVGP, KH20P, KH10P and KH5P),
each Portfolio may not:
(i) purchase or retain the securities of any issuer if any of the officers
or trustees of the Portfolio or its investment adviser owns beneficially
more than 1/2 of 1% of the securities of such issuer and together own more
than 5% of the securities of such issuer.
(with respect to KIP, KSCGP, KIGBP, KVP, KSCVP, KVGP, KH20P, KH10P and
KH5P), each Portfolio may not:
(ii) invest in interests in oil, gas, or other mineral exploration or
development programs, although it may invest in the securities of issuers
which invest in or sponsor such programs.
(with respect to KMMP, KTRP, KHYP, KGP and KGSP), each Portfolio may not:
(ii) invest in oil, gas or other mineral exploration or development
programs, although it may invest in the securities of issuers which invest
in or sponsor such programs.
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(with respect to KIP, KSCVP, KIGBP, KVP, KSCGP, KVGP, KH20P, KH10P and
KH5P), each Portfolio may not:
(iii) invest more than 5% of the Portfolio's total assets in securities of
issuers which with their predecessors have a record of less than three
years continuous operation.
OFFICERS AND TRUSTEES
Messrs. Morax and Timbers are no longer trustees of the Fund. The following are
new trustees:
DANIEL PIERCE (03/18/34), Trustee*, (63), 345 Park Avenue, New York, New York;
Managing Director, Scudder Kemper; Director, Fiduciary Trust Company; Director,
Fiduciary Company Incorporated.
EDMOND D. VILLANI (03/4/47), Trustee*, (50), 345 Park Avenue, New York, New
York; Chief Executive Officer, Scudder Kemper.
PORTFOLIO TRANSACTIONS
To the maximum extent feasible, it is expected that Scudder Kemper will place
orders for portfolio transactions through Scudder Investor Services, Inc., Two
International Place, Boston, Massachusetts 02110 ("SIS"), a corporation
registered as a broker-dealer and a subsidiary of Scudder. SIS will place orders
on behalf of the Fund with issuers, underwriters or other brokers and dealers.
SIS will not receive any commission, fee or other remuneration from the Fund for
this service.
December 31, 1997
IFS-IFF (LOGO)PRINTED ON RECYCLED PAPER
