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KEMPER-DREMAN FUND, INC.
SUPPLEMENT TO PROSPECTUS
DATED SEPTEMBER 11, 1995
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KEMPER HORIZON FUND
SUPPLEMENT TO PROSPECTUS
DATED JANUARY 1, 1996
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INVESTMENT MANAGER
Kemper Financial Services, Inc., the investment manager for Kemper Horizon
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 the Kemper-Dreman Contrarian Fund, Christian C. Bertelsen
has managed the Fund since March, 1996. Mr. Bertelsen joined Dreman Value
Advisors, Inc. ("DVA"), the investment manager of Kemper-Dreman Fund, Inc., in
March, 1996 as Chief Investment Officer. Prior to joining DVA, he served from
April, 1993 as a senior vice president and a portfolio manager of an
unaffiliated investment management firm and, on a temporary part-time basis, he
continues to serve in that capacity. Prior thereto, he was a senior vice
president of another unaffiliated investment management firm. Mr. Bertelsen
received a B.A. degree from Boston University, Boston, Massachusetts.
ADMINISTRATIVE SERVICES
As reflected under "Administrative Services" in the prospectus, Kemper
Distributors, Inc. ("KDI"), the principal underwriter and administrator for the
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.
PURCHASE OF SHARES
As reflected under "Purchase of Shares--Initial Sales Charge
Alternative--Class A Shares" in the prospectus, Class A shares of the 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. Effective immediately, Kemper Distributors, Inc.
("KDI"), the Fund's principal underwriter, 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 C SHARES
As described more fully below, the "Summary of Expenses--Shareholder
Transaction Expenses" table in the prospectus applicable to Class C shares
purchased on or after April 1, 1996 is restated as follows:
<TABLE>
<CAPTION>
CLASS C
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<S> <C>
Maximum Sales Charge on Purchases (as a percentage of offering
price)............................................................. None
Maximum Sales Charge on Reinvested Dividends......................... None
Redemption Fees...................................................... None
Exchange Fee......................................................... None
Deferred Sales Charge (as a percentage of redemption proceeds)....... 1% during the first year
</TABLE>
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Effective for Class C shares purchased on or after April 1, 1996, KDI
advances to financial services firms for sales of Class C shares the first year
distribution fee at a rate of .75% of the purchase price of such shares and the
first year service fee at a rate of up to .25% of the purchase price of such
shares. Distribution and service fees for periods after the first year will be
paid by KDI as currently provided. See "Investment Manager and Underwriter" in
the prospectus.
In addition, effective for Class C shares purchased on or after April 1,
1996, a contingent deferred sales charge of 1% may be imposed upon the
redemption of Class C shares within one year of purchase. The charge will not be
imposed upon redemption of reinvested dividends or share appreciation. The
charge is applied to the value of the shares redeemed excluding amounts not
subject to the charge. The contingent deferred sales charge will be waived: (a)
in the event of the total disability (as evidenced by a determination by the
federal Social Security Administration) of the shareholder (including a
registered joint owner) occurring after the purchase of the shares being
redeemed, (b) in the event of the death of the shareholder (including a
registered joint owner), (c) for redemptions made pursuant to a systematic
withdrawal plan (limited to 10% of the net asset value of the account; see
"Special Features--Systematic Withdrawal Plan"), (d) for redemptions made
pursuant to any IRA systematic withdrawal based on the shareholder's life
expectancy including, but not limited to, substantially equal periodic payments
described in Internal Revenue Code Section 72(t)(2)(A)(iv) prior to age 59 1/2,
(e) for redemptions to satisfy required minimum distributions after age 70 1/2
from an IRA account (with the maximum amount subject to this waiver being based
only upon the shareholder's Kemper IRA accounts) and (f) for any
participant-directed redemption of shares held by employer sponsored employee
benefit plans maintained on the subaccount record keeping system made available
by the Shareholder Service Agent.
Investments are tracked on a monthly basis for purposes of the contingent
deferred sales charge. The period of ownership for this purpose begins the first
day of the month in which the order for the purchase of shares is received. A
redemption will be made first from Class C shares representing reinvested
dividends and then from the earliest purchase of Class C shares. KDI receives
any contingent deferred sales charge directly.
Class C shares may be exchanged without any contingent deferred sales
charge being imposed at the time of exchange. For determining whether there is a
contingent deferred sales charge that may be imposed upon redemption of the
Class C shares received by exchange, they retain the cost and purchase date of
the shares that were originally purchased and exchanged.
DIVIDENDS
The dividend policies of the Kemper-Dreman Small Cap Value Fund have been
changed to provide that the Fund will normally distribute annual dividends of
net investment income and any net realized short-term and long-term capital
gains. See "Dividends and Taxes" in the prospectus.
March 15, 1996
KMF-1A 3/96 (LOGO)printed on recycled paper
