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KEMPER-DREMAN FUND, INC.
SUPPLEMENT TO PROSPECTUS
DATED MAY 1, 1996
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KEMPER EUROPE FUND
SUPPLEMENT TO PROSPECTUS
DATED APRIL 19, 1996
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KEMPER HORIZON FUND
SUPPLEMENT TO PROSPECTUS
DATED SEPTEMBER 10, 1996
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NAME CHANGE
Kemper-Dreman High Return Fund, a series of Kemper-Dreman Fund, Inc., has
changed its name to Kemper-Dreman High Return Equity Fund.
INVESTMENT MANAGER
Kemper Financial Services, Inc., the investment manager for Kemper Horizon
Fund and Kemper Europe Fund, has changed its name to Zurich Kemper Investments,
Inc. ("ZKI"). ZKI is an indirect subsidiary of Zurich Insurance Company, an
internationally recognized company providing services in life and non-life
insurance, reinsurance and asset management. See "Investment Manager and
Underwriter" in the prospectus.
With respect to Kemper Europe Fund and Kemper Horizon Fund, Zurich
Investment Management Limited ("ZIML"), 1 Fleet Place, London, U.K. EC4M 7RQ, an
affiliate of Zurich Kemper Investments, Inc. ("ZKI"), the Fund's investment
manager, is a sub-adviser for the Fund. ZIML has served as sub-adviser for
mutual funds since December, 1996 and investment adviser for certain
institutional accounts since August, 1988. Under the terms of the Sub-Advisory
Agreement between ZIML and ZKI for Kemper Horizon Fund, ZIML renders investment
advisory and management services with regard to such portion of the Fund's
portfolio as may be allocated to ZIML by ZKI from time to time for management of
foreign securities, including foreign currency transactions and related
investments. Under the terms of the Sub-Advisory Agreement between ZIML and ZKI
for Kemper Europe Fund, ZIML renders investment advisory and management services
with regard to such portion of the Fund's portfolio as may be allocated to ZIML
by ZKI from time to time for management, including services related to foreign
securities, foreign currency transactions and related investments. ZKI pays ZIML
a sub-advisory fee, payable monthly at the annual rate of .35% of the portion of
the average daily net assets of each Fund allocated by ZKI to ZIML for
management. ZIML is an indirect subsidiary of Zurich Insurance Company.
With respect to Kemper-Dreman Fund, Inc., Christian C. Bertelsen and Steven
T. Stokes have been the portfolio co-managers of the Kemper-Dreman Small Cap
Value Fund since July, 1996. Mr. Stokes joined Dreman Value Advisors, Inc.
("DVA"), the investment manager for the Fund, in April, 1996 and is currently a
Managing Director of DVA. Prior thereto, he served as a portfolio manager of an
unaffiliated investment management firm. Mr. Stokes received a B.S. degree in
Finance from State University of New York at New Paltz. Mr. Stokes is a
Chartered Financial Analyst. Information regarding Mr. Bertelsen appears in the
prospectus under "Investment Manager and Underwriter."
ADMINISTRATIVE SERVICES
As reflected under "Administrative Services" in the prospectus, Kemper
Distributors, Inc. ("KDI"), the principal underwriter and administrator for each
Fund, is paid an administrative service fee by the Fund of up to .25% of average
daily net assets of Class A, B and C shares of the Fund. KDI then pays financial
services firms a service fee at an annual rate of up to .25% of net assets of
each such class of those accounts in the Fund that the firms maintain and
service. In addition, KDI may, from time to time, from its own resources pay
certain firms additional amounts for ongoing administrative services and
assistance provided to their customers and clients who are shareholders of the
Fund.
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PURCHASE OF SHARES
As reflected under "Purchase of Shares--Initial Sales Charge
Alternative--Class A Shares" in the prospectus, Class A shares of a Fund may be
purchased at net asset value to the extent that the amount invested represents
the net proceeds from a redemption of shares of a mutual fund for which ZKI or
an affiliate does not serve as investment manager ("non-Kemper fund") provided
that certain conditions specified therein are satisfied including the condition
that the investor has previously paid either an initial sales charge in
connection with the purchase of the non-Kemper fund shares redeemed or a
contingent deferred sales charge in connection with the redemption of the
non-Kemper fund shares. KDI may in its discretion compensate firms for sales of
Class A shares under this privilege at a commission rate of .50% of the amount
of Class A shares of the Fund purchased.
Class A shares of a Fund may be purchased at net asset value by: (a) any
purchaser provided that the amount invested in such Fund or other Kemper Mutual
Funds listed under "Special Features--Class A Share--Combined Purchases," totals
at least $1,000,000 including purchases of Class A shares pursuant to the
"Combined Purchases," "Letter of Intent" and "Cumulative Discount" features
described under "Special Features"; or (b) a participant-directed qualified
retirement plan described in Code Section 401(a), a participant-directed
non-qualified deferred compensation plan described in Code Section 457 or a
participant-directed qualified retirement plan described in Code Section
403(b)(7) that is not sponsored by a K-12 school district, provided in each case
that the plan has not fewer than 200 eligible employees (the "Large Order NAV
Purchase Privilege"). Redemption within one year of shares purchased under the
Large Order NAV Purchase Privilege may be subject to a contingent deferred sales
charge of 1%. Effective for shares purchased on or after June 17, 1996 under
this privilege, in addition to the aforementioned 1% contingent deferred sales
charge, a contingent deferred sales charge of .50% may be imposed upon
redemption of such shares during the second year following the date of purchase.
See "Redemption or Repurchase of Shares--Contingent Deferred Sales Charge--Large
Order NAV Purchase Privilege" in the prospectus for information on the
calculation of the charge and waivers of the charge. In addition to the waivers
set forth in the aforementioned section of the prospectus, the contingent
deferred sales charge will be waived in connection with redemptions of shares
purchased under the Large Order NAV Purchase Privilege by investors whose dealer
of record at the time of investment notifies KDI that the dealer waives the
commission for such purchase described in the following paragraph.
In addition, as reflected under "Purchase of Shares--Initial Sales Charge
Alternative--Class A Shares" in the prospectus, KDI may in its discretion
compensate investment dealers or other financial services firms up to certain
amounts in connection with the sale of Class A shares of the Fund at net asset
value in accordance with the Large Order NAV Purchase Privilege. Effective for
shares purchased on or after June 17, 1996 under this privilege, KDI may in its
discretion compensate such firms up to the following amounts: 1.00% of the net
asset value of shares sold on amounts up to $5 million, .50% on the next $45
million and .25% on amounts over $50 million. The commission schedule will be
reset on a calendar year basis for sales of shares pursuant to the Large Order
NAV Purchase Privilege to employer sponsored employee benefit plans using the
subaccount recordkeeping system made available through Kemper Service Company.
For purposes of determining the appropriate commission percentage to be applied
to a particular sale under the foregoing schedule, KDI will consider the amount
invested by a purchaser in the Fund and other Kemper Mutual Funds listed under
"Special Features--Class A Shares--Combined Purchases" in the prospectus,
including purchases pursuant to the "Combined Purchases," "Letter of Intent" and
"Cumulative Discount" features described under "Special Features."
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Class A shares of a Fund may be purchased at net asset value in any amount
by certain professionals who assist in the promotion of Kemper Funds pursuant to
personal services contracts with KDI, for themselves or members of their
families. KDI in its discretion may compensate financial services firms for
sales of Class A shares under this privilege at a commission rate of .50% of the
amount of Class A shares purchased.
KDI may from time to time, pay or allow to firms a 1% commission on the
amount of shares of a Fund sold under the following conditions: (i) the
purchased shares are held in a Kemper IRA account, (ii) the shares are purchased
as a direct "roll over" of a distribution from a qualified retirement plan
account maintained on a participant subaccount record keeping system provided by
Kemper Service Company, (iii) the registered representative placing the trade is
a member of ProStar, a group of persons designated by KDI in acknowledgment of
their dedication to the employee benefit plan area; and (iv) the purchase is not
otherwise subject to a commission.
DIVIDENDS AND TAXES
Dividends and other distributions in the aggregate amount of $10 or less
are automatically reinvested in shares of the Fund unless the Shareholder
requests that such policy not be applied to the Shareholder's account.
When more than one shareholder resides at the same address, certain reports
and communications to be delivered to such shareholders may be combined in the
same mailing package, and certain duplicate reports and communications may be
eliminated. Similarly, account statements to be sent to such shareholders may be
combined in the same mailing package or consolidated into a single statement.
However, a shareholder may request that the foregoing policies not be applied to
shareholder's account.
REDEMPTION OR REPURCHASE OF SHARES
If shares of a Fund to be redeemed were purchased by check or through
EXPRESS-Transfer or Bank Direct Deposit, the Fund may delay transmittal of
redemption proceeds until it has determined that collected proceeds have been
received for the purchase of such shares, which may be up to 10 calendar days
from receipt by the Fund of the purchase amount.
SPECIAL FEATURES
The minimum and maximum amounts that may be redeemed under the
EXPRESS-Transfer privilege are $100 and $50,000, respectively.
The maximum amount that may be purchased under the EXPRESS-Transfer
privilege or the Bank Direct Deposit privilege, or redeemed under the Systematic
Withdrawal Program privilege, is $50,000.
Shares of a Kemper Mutual Fund with a value in excess of $1,000,000, other
than Kemper Cash Reserves Fund, acquired by exchange from another Kemper Mutual
Fund, or from a Money Market Fund, may not be exchanged thereafter until they
have been owned for 15 days (the "15-Day Hold Policy"). For purposes of
determining whether the 15-Day Hold Policy applies to a particular exchange, the
value of the shares to be exchanged shall be computed by aggregating the value
of shares being exchanged for all accounts under common control, direction or
advice, including without limitation accounts administered by a financial
services firm offering market timing, asset allocation or similar services.
December 27, 1996
KMF-1D (LOGO)printed on recycled paper
