Kemper Equity Funds/Growth Style
Kemper Aggressive Growth Fund
Kemper Blue Chip Fund
Kemper Growth Fund
Kemper Small Capitalization Equity Fund
Kemper Technology Fund
Kemper Total Return Fund
Kemper Value+Growth Fund
SUPPLEMENT TO PROSPECTUS
DATED FEBRUARY 1, 2000
CLASS I SHARES
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The above funds currently offer four classes of shares to provide investors with
different purchasing options. These are Class A, Class B and Class C shares,
which are described in the funds' prospectus, and Class I shares, which are
described in the prospectus as supplemented hereby. When placing purchase
orders, investors must specify whether the order is for Class A, Class B, Class
C or Class I shares.
Class I shares are available for purchase exclusively by the following
categories of institutional investors: (1) tax-exempt retirement plans (Profit
Sharing, 401(k), Money Purchase Pension and Defined Benefit Plans) of Scudder
Kemper Investments, Inc. ("Scudder Kemper") and its affiliates and rollover
accounts from those plans; (2) the following investment advisory clients of
Scudder Kemper and its investment advisory affiliates that invest at least $1
million in a fund: unaffiliated benefit plans, such as qualified retirement
plans (other than individual retirement accounts and self-directed retirement
plans); unaffiliated banks and insurance companies purchasing for their own
accounts; and endowment funds of unaffiliated non-profit organizations; (3)
investment-only accounts for large qualified plans, with at least $50 million in
total plan assets or at least 1000 participants; (4) trust and fiduciary
accounts of trust companies and bank trust departments providing fee-based
advisory services that invest at least $1 million in a fund on behalf of each
trust; and (5) policy holders under Zurich-American Insurance Group's collateral
investment program investing at least $200,000 in a fund; and (6) investment
companies managed by Scudder Kemper that invest primarily in other investment
companies.
Class I shares currently are available for purchase only from Kemper
Distributors, Inc. ("KDI"), principal underwriter for the funds, and, in the
case of category 4 above, selected dealers authorized by KDI. Share certificates
are not available for Class I shares.
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The primary distinctions among the classes of each fund's shares lie in their
initial and contingent deferred sales charge schedules and in their ongoing
expenses, including asset-based sales charges in the form of Rule 12b-1
distribution fees. Class I shares are offered at net asset value without an
initial sales charge and are not subject to a contingent deferred sales charge
or a Rule 12b-1 distribution fee. Also, there is no administrative services fee
charged to Class I shares. As a result of the relatively lower expenses for
Class I shares, the level of income dividends per share (as a percentage of net
asset value) and, therefore, the overall investment return, typically will be
higher for Class I shares than for Class A, Class B and Class C shares.
The following information supplements the indicated sections of the prospectus.
Performance
The table shows how the funds' returns over different periods average out. For
context, the table has market indices (which, unlike the funds, have no fees or
expenses). All figures on this page assume reinvestment of dividends and
distributions. As always, past performance is no guarantee of future results. No
performance data are available for the Class I shares of Kemper Aggressive
Growth Fund and Kemper Value+Growth Fund.
Average Annual Total Returns (as of 12/31/1999)
Since 12/31/98 Since 7/3/95 Since 11/22/95
1 Year Life of Class Life of Class
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Kemper Blue Chip Fund 26.37% -- 24.00%
Index 1 21.04 -- 26.40*
Index 2 20.91 -- 25.63*
Kemper Growth Fund 37.44 22.01% --
Index 1 21.04 26.90** --
Index 3 33.16 31.12** --
Kemper Small Capitalization
Equity Fund 34.26 17.42 --
Index 1 21.04 26.90** --
Index 4 21.26 15.21** --
Index 5 43.09 17.39** --
Kemper Technology Fund 115.09 39.09 --
Index 1 21.04 26.90** --
Index 3 33.16 31.12** --
Index 6 123.33 45.57** --
2
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Since 12/31/98 Since 7/3/95 Since 11/22/95
1 Year Life of Class Life of Class
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Kemper Total Return Fund 15.08 17.23 --
Index 1 21.04 26.90** --
Index 3 33.16 31.12** --
Index 7 -2.15 5.83** --
* Index comparison begins November 30, 1995
** Index comparison begins June 30, 1995
Index 1: Standard & Poor's 500 Composite Stock Price Index (S&P 500), an
unmanaged capitalization-weighted index that includes 500 large-cap U.S. stocks.
Index 2: Russell 1000 Index, an unmanaged price-only index of the 1,000 largest
capitalized companies that are domiciled in the United States and whose common
stocks are traded there.
Index 3: Russell 1000 Growth Index, an unmanaged capitalization-weighted index
containing the growth stocks in the Russell 1000 Index.
Index 4: Russell 2000 Index, an unmanaged capitalization-weighted measure of
approximately 2,000 small U.S. stocks.
Index 5: Russell 2000 Growth Index, an unmanaged capitalization-weighted index
containing the growth stocks in the Russell 2000 Index.
Index 6: Hambrecht & Quist Index, an unmanaged index composed of approximately
275 technology stocks, including companies from five technology groups: computer
hardware, computer software, communications, semiconductors and information
services.
Index 7: Lehman Brothers Government/Corporate Bond Index, an unmanaged index of
government and investment-grade corporate debt securities of intermediate- and
long-term maturities.
3
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How much investors pay
This table describes the fees and expenses that you may pay if you buy and hold
shares of a fund.
Shareholder fees: Fees paid directly from your investment.
Maximum
Sales Maximum
Charge Deferred
(Load) Sales Maximum Redemption
Imposed on Charge Sales Fee (as %
Purchases (Load) (as Charge on of amount
(as % of % of Reinvested redeemed,
Offering Redemption Dividends/ if Exchange
Price) Proceeds) Distributions applicable) Fee
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Kemper
Aggressive
Growth Fund None None None None None
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Kemper Blue
Chip Fund None None None None None
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Kemper Growth
Fund None None None None None
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Kemper Small
Capitalization
Equity Fund None None None None None
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Kemper
Technology Fund None None None None None
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Kemper Total
Return Fund None None None None None
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Kemper
Value+Growth
Fund None None None None None
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4
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Annual fund operating expenses: Expenses that are deducted from fund assets.
Total
Distribu- Annual
Investment tion Fund
management (12b-1) Other Operating
Fee Fees Expenses* Expenses
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Kemper Aggressive Growth Fund 0.41% None 0.45% 0.86%
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Kemper Blue Chip Fund 0.56% None 0.24% 0.80%
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Kemper Growth Fund 0.54% None 0.21% 0.75%
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Kemper Small Capitalization
Equity Fund 0.65% None 0.03% 0.68%
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Kemper Technology Fund 0.53% None 0.08% 0.61%
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Kemper Total Return Fund 0.53% None 0.21% 0.74%
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Kemper Value+Growth Fund 0.70% None 0.33% 1.03%
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* "Other Expenses" are restated to reflect changes in certain administrative
and regulatory fees.
Example
Based on the figures above, this example is designed to help you compare the
expenses of a fund to those of other funds. The example assumes operating
expenses remain the same and that you invested $10,000, earned 5% annual returns
and reinvested all dividends and distributions. This is only an example; actual
expenses will be different.
1 Year 3 Years 5 Years 10 Years
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Kemper Aggressive Growth Fund $88 $274 $477 $1,061
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Kemper Blue Chip Fund $82 $255 $444 $990
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Kemper Growth Fund $77 $240 $417 $930
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Kemper Small Capitalization
Equity Fund $69 $218 $379 $847
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Kemper Technology Fund $62 $195 $340 $762
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Kemper Total Return Fund $76 $237 $411 $918
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Kemper Value+Growth Fund $105 $328 $569 $1,259
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5
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Financial Highlights
Kemper Blue Chip Fund
November
22, 1995 to
Year ended October 31, October 31,
CLASS I 1999 1998 1997 1996
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Per share operating performance
Net asset value, beginning of
period $16.68 17.72 17.18 15.30
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Income from investment operations:
Net investment income .13 .21 .32 .36
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Net realized and
unrealized gain 4.60 1.19 3.58 2.96
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Total from investment
operations 4.73 1.40 3.90 3.32
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Less distributions from:
Net investment income -- .25 .23 .24
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Net realized gain .42 2.19 3.13 1.20
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Total dividends .42 2.44 3.36 1.44
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Net asset value, end of period $20.99 16.68 17.72 17.18
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Total return (not annualized) 28.81% 8.53 26.89 21.89
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Ratios to average net assets (annualized)
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Expenses, before expense
reductions .72% .68 .70 1.31
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Expenses, net .72% .68 .70 1.31
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Net investment income (loss) .60% 1.23 1.56 1.33
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Year ended October 31,
1999 1998 1997 1996 1995
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Supplemental data for all classes
Net assets at end of
period (in thousands) $915,008 581,770 446,891 256,172 168,266
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Portfolio turnover rate
(annualized) 75% 157 183 166 117
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Note: Per share data for the year ended October 31, 1999 was determined based on
average shares outstanding.
6
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Kemper Growth Fund
July 3 to
September
Year ended September 30, 30,
CLASS I 1999 1998 1997 1996 1995
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Per share operating performance
Net asset value, beginning
of period $11.88 15.60 17.26 16.09 14.80
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Income from investment operations:
Net investment income -- .05 .08 .19 .03
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Net realized and
unrealized gain (loss) 4.25 (1.68) 2.61 2.74 1.26
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Total from investment
operations 4.25 (1.63) 2.69 2.93 1.29
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Less dividends:
Distribution from net
investment income -- -- -- .08 --
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Distribution from net
realized gain .06 2.09 4.35 1.68 --
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Total dividends .06 2.09 4.35 1.76 --
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Net asset value, end
of period $16.07 11.88 15.60 17.26 16.09
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Total return
(not annualized) 35.82% (11.45) 20.51 20.19 8.72
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Ratios to average net assets (annualized)
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Expenses .71% .65 .70 .64 .59
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Net investment income (loss) (.02)% .30 .43 1.08 .92
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Year ended September 30,
1999 1998 1997 1996 1995
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Supplemental data for all classes
Net assets at end of
year (in thousands) $2,578,244 2,209,521 2,827,565 2,738,303 2,503,301
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Portfolio turnover
rate 97% 122 201 150 67
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Note: Per share data for years ended September 30, 1999 and September 30, 1998
were determined based on average shares outstanding.
7
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Kemper Small Capitalization Equity Fund
July 3
to
September
Year ended September 30, 30,
CLASS I 1999 1998 1997 1996 1995
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Per share operating performance
Net asset value, beginning
of year $5.39 8.07 7.05 7.15 6.27
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Income from investment operations:
Net investment
income (loss) (.01) -- .01 .01 --
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Net realized and
unrealized gain (loss) 1.30 (1.87) 1.58 .94 .88
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Total from investment
operations 1.29 (1.87) 1.59 .95 .88
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Less distributions from net
realized gain .41 .81 .57 1.05 --
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Net asset value, end of year $6.27 5.39 8.07 7.05 7.15
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Total return 24.66% (24.82) 24.89 16.76 14.04
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Ratios to average net assets (annualized)
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Expenses .58% .48 .53 .66 .79
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Net investment income (loss) (.21)% .04 .17 .16 (.14)
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Year ended September 30,
1999 1998 1997 1996 1995
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Supplemental data for all classes
Net assets at end of year
(in thousands) $721,926 718,349 1,095,478 934,075 839,905
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Portfolio turnover rate 133% 86 102 85 102
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Note: Per share data for the years ended September 30, 1999, and September 30,
1996 were determined based on average shares outstanding.
8
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Kemper Technology Fund
July 3 to
October
Year ended October 31, 31,
CLASS I 1999 1998 1997 1996 1995
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Per share operating performance
Net asset value, beginning
of period $11.86 13.19 13.20 14.64 12.72
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Income from investment operations:
Net investment loss (.02) (.02) (.04) (.07) (.02)
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Net realized and
unrealized gain 10.77 .83 2.14 .76 1.94
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Total from investment
operations 10.75 .81 2.10 .69 1.92
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Less distribution from net
realized gain 1.07 2.14 2.11 2.13 --
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Net asset value, end
of period $21.54 11.86 13.19 13.20 14.64
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Total return (not
annualized) 95.39% 8.44 17.23 8.06 15.09
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Ratios to average net assets (annualized)
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Expenses, before expense
reductions .65% .67 .74 .76 .65
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Expenses, net .64% .67 .74 .76 .65
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Net investment loss (.09)% (.12) (.27) (.49) (.33)
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Year ended October 31,
1999 1998 1997 1996 1995
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Supplemental data for all classes
Net assets at end of
year (in thousands) $2,805,651 1,247,991 1,209,723 1,062,813 1,017,955
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Portfolio turnover
rate 59% 146 192 121 105
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Note: Per share data for 1995 through 1999 was determined based on average
shares outstanding.
9
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Kemper Total Return Fund
July 3
to
October
Year ended October 31, 31,
CLASS I 1999(a) 1998 1997 1996 1995
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Per share operating performance
Net asset value, beginning
of period $10.54 11.33 11.27 10.61 10.07
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Income from investment operations:
Net investment income .34 .34 .36 .32 .10
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Net realized and
unrealized gain 1.53 .77 1.55 1.23 .52
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Total from investment
operations 1.87 1.11 1.91 1.55 .62
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Less dividends:
Distribution from net
investment income .35 .35 .36 .39 .08
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Distribution from net
realized gain .68 1.55 1.49 .50 --
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Total dividends 1.03 1.90 1.85 .89 .08
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Net asset value, end
of period $11.38 10.54 11.33 11.27 10.61
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Total return (not
annualized) 18.65% 10.98 19.40 15.64 6.21
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Ratios to average net assets (annualized)
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Expenses, before expense
reductions .67% .64 .71 .72 .61
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Expenses, net .67% .64 .71 .72 .61
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Net investment income 3.06% 3.12 3.22 3.09 2.97
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Year ended October 31,
1999 1998 1997 1996 1995
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Supplemental data for all classes
Net assets at end of
year (in thousands) $3,682,023 3,321,254 3,241,383 3,020,798 2,926,542
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Portfolio turnover
rate (annualized) 64% 80 122 85 142
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(a) Per share data was determined based on monthly average shares outstanding
during the period.
10
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Special Features
Shareholders of a Fund's Class I shares may exchange their shares for (i) shares
of Zurich Money Funds -- Zurich Money Market Fund if the shareholders of Class I
shares have purchased shares because they are participants in tax-exempt
retirement plans of Scudder Kemper and its affiliates and (ii) Class I shares of
any other "Kemper Mutual Fund" listed in the Statement of Additional
Information. Conversely, shareholders of Zurich Money Funds -- Zurich Money
Market Fund who have purchased shares because they are participants in
tax-exempt retirement plans of Scudder Kemper and its affiliates may exchange
their shares for Class I shares of "Kemper Mutual Funds" to the extent that they
are available through their plan. Exchanges will be made at the relative net
asset values of the shares. Exchanges are subject to the limitations set forth
in the prospectus.
February 1, 2000
