INVESTORS FUND SERIES
Kemper Blue Chip Portfolio
Kemper Contrarian Value Portfolio
Kemper Global Blue Chip Portfolio
Kemper Global Income Portfolio
Kemper Government Securities Portfolio
Kemper Growth Portfolio
Kemper High Yield Portfolio
Kemper Horizon 10+ Portfolio
Kemper Horizon 20+ Portfolio
Kemper Horizon 5 Portfolio
Kemper International Growth and Income Portfolio
Kemper International Portfolio
Kemper Investment Grade Bond Portfolio
Kemper Money Market Portfolio
Kemper Small Cap Growth Portfolio
Kemper Small Cap Value Portfolio
Kemper Total Return Portfolio
Kemper Value+Growth Portfolio
Kemper-Dreman Financial Services Portfolio
Kemper-Dreman High Return Equity Portfolio
SUPPLEMENT TO CURRENTLY EFFECTIVE PROSPECTUS
OF EACH OF THE LISTED PORTFOLIOS (EACH A "FUND")
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On September 7, 1998, Zurich Insurance Company ("Zurich"), the majority owner of
Scudder Kemper Investments, Inc. (the "Adviser"), entered into an agreement with
B.A.T Industries p.l.c. ("B.A.T"), pursuant to which the financial services
businesses of B.A.T were combined with Zurich's businesses to form a new global
insurance and financial services company known as Zurich Financial Services.
Upon consummation of the transaction, each Fund's investment management
agreement with the Adviser was deemed to have been assigned and, therefore,
terminated. The Board of Trustees of each Fund and the shareholders of each Fund
have approved a new investment management agreement with the Adviser, which is
substantially identical to the former investment management agreement, except
for the dates of execution and termination.
At the special meeting of shareholders for the Funds held on December 16, 1998
(the "Special Meeting"), the shareholders approved the following:
February 22, 1999
IFS-1P
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For Kemper Global Income Portfolio: as a matter of fundamental policy, the Fund
is classified as a non-diversified series of an open-end investment company
under the Investment Company Act of 1940 (the "1940 Act"), but the shareholders
voted to eliminate any additional fundamental diversification policies.
For all other Funds, as a matter of fundamental policy, each Fund is classified
as a diversified series of an open-end investment company under the 1940 Act,
but the shareholders voted to eliminate any additional fundamental
diversification policies.
Additionally, at the Special Meeting, the shareholders approved the
reclassification of each Fund's investment objective(s) and policies as
non-fundamental, with the exception of those policies required to be fundamental
by the 1940 Act. An objective or policy which is non-fundamental may be changed
or eliminated by the Fund's Board without a vote of the shareholders.
The following supplements the "Investment Objectives, Policies and Techniques"
section of the currently effective Prospectus:
High Return Equity Portfolio. The Portfolio's investment policy allows
investment of up to 20% of the Portfolio's assets in securities of foreign
companies through the acquisition of American Depository Receipts, the purchase
of securities in foreign companies that are publicly traded in the United
States, and the purchase of securities of foreign companies that are traded
principally in securities markets outside the United States.
Special Risk Factors -- Foreign Securities. The Total Return, High Yield,
Growth, Small Cap Growth, Investment Grade Bond, Value+Growth, Blue Chip, High
Return Equity and Financial Services Portfolios 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 High Return Equity and Financial Services
Portfolios) 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
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as well as through the purchase of securities of foreign companies that are
publicly traded in the United States and the purchase of securities of foreign
companies that are traded principally in securities markets outside 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.
