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DREMAN MUTUAL GROUP, INC.
SUPPLEMENT DATED AUGUST 25, 1995
TO PROSPECTUS DATED MAY 1, 1995.
THE DREMAN CONTRARIAN PORTFOLIO
THE DREMAN HIGH RETURN PORTFOLIO
THE DREMAN SMALL CAP VALUE PORTFOLIO
THE DREMAN FIXED INCOME PORTFOLIO
On August 1, 1995, the shareholders of The Dreman Contrarian Portfolio (the
"Contrarian Portfolio"), The Dreman High Return Portfolio (the "High Return
Portfolio"), The Dreman Small Cap Value Portfolio (the "Small Cap Value
Portfolio"), and The Dreman Fixed Income Portfolio (the "Fixed Income
Portfolio") (each a "Portfolio", and together, the "Portfolios") of Dreman
Mutual Group, Inc. (the "Fund") approved an investment management agreement with
Dreman Value Advisors, Inc. ("DVA") (previously named Kemper Advisors, Inc.), at
a special meeting of shareholders. On August 24, 1995, DVA entered into the new
investment management agreement with the Fund and DVA acquired substantially all
of the assets of Dreman Value Management, L.P. ("DVM"), which had been the
Portfolios' investment adviser (the "Acquisition").
NAME CHANGE. In connection with the Acquisition, the name of the Fund will be
changed to Kemper-Dreman Fund, Inc. effective September 11, 1995. Each
Portfolio's name will also be changed to include the Kemper-Dreman name.
NO MODIFICATION OF INVESTMENT POLICY. DVA will continue to manage the Portfolios
consistent with the investment objective described in the Prospectus dated May
1, 1995. DVA has employed substantially all of the investment management staff
of DVM to continue to advise the Portfolios.
NEW INVESTMENT MANAGEMENT AGREEMENT. Under the new investment management
agreement, the Contrarian, High Return and Small Cap Value Portfolios each pay
an investment management fee to DVA at a maximum annual rate of 0.75% of the
Portfolio's average daily net assets. The Fixed Income Portfolio pays an
investment management fee of 0.50% of the Portfolio's average daily net assets.
NEW ADMINISTRATIVE SERVICES AGREEMENT. Effective September 11, 1995 under a new
administrative services agreement between Kemper Distributors, Inc. ("KDI"), an
affiliate of DVA, and the Fund, the Contrarian, High Return and Small Cap Value
Portfolios each will pay an administrative services fee at an annual rate of up
to 0.25% of average daily net assets. The Fixed Income Portfolio will not pay an
administrative services fee.
EXPENSE CAP. Operating expenses for the Class A Shares of the Contrarian
Portfolio, the High Return Portfolio and the Small Cap Portfolio will continue
to be limited to 1.25% of average daily net assets until September 11, 1996.
FIXED INCOME PORTFOLIO. KAI intends to propose to the Fund's Board of Directors
that the Fixed Income Portfolio be dissolved in the fourth quarter of 1995. If
the proposal is approved by the Board, it is anticipated that no further
investments into that Portfolio will be accepted other than dividend and capital
gains reinvestments.
DISTRIBUTION STRUCTURE. Beginning September 11, 1995, the Fund will offer shares
in the Contrarian Portfolio, the High Return Portfolio and the Small Cap
Portfolio to new investors through a distribution structure that will include a
sales load and/or distribution fee on the shares sold. KDI will serve as
principal underwriter to the Fund. If you wish to receive a copy of this new
prospectus to be dated September 11, 1995, please call 1-800-621-1048.
DRE-1D
