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KEMPER VALUE FUND, INC. KEMPER EUROPE FUND KEMPER HORIZON FUND
(formerly Kemper-Dreman Fund, Inc.) SUPPLEMENT TO PROSPECTUS Kemper Horizon 20+ Portfolio
Kemper Contrarian Fund DATED APRIL 1, 1997 Kemper Horizon 10+ Portfolio
Kemper Small Cap Value Fund Kemper Horizon 5 Portfolio
Kemper-Dreman High Return Equity SUPPLEMENT TO PROSPECTUS
Fund DATED SEPTEMBER 10, 1996
SUPPLEMENT TO PROSPECTUS
DATED APRIL 25, 1997
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KEMPER RETIREMENT FUND--SERIES VII
SUPPLEMENT TO PROSPECTUS
DATED MAY 1, 1997
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INVESTMENT MANAGER AND UNDERWRITER
Zurich Insurance Company ("Zurich") has entered into a definitive agreement
with Scudder, Stevens & Clark, Inc. ("Scudder") pursuant to which Zurich will
acquire approximately 70% of Scudder. Upon completion of the transaction,
Scudder will change its name to Scudder Kemper Investments, Inc. ("SKI"), and
Zurich Kemper Investments, Inc. ("ZKI") will be operated either as a subsidiary
of SKI or as part of SKI. Consummation of the transaction is subject to a number
of contingencies. Because the transaction would constitute an assignment of the
Funds' investment management agreements with ZKI and its affiliate, Dreman Value
Advisors, Inc. ("DVA") and, where applicable, Rule 12b-1 agreements under the
Investment Company Act of 1940, it is anticipated that ZKI would seek approval
of new agreements by the Funds' boards and shareholders. If the contingencies
are timely met, the transaction is expected to close in the fourth quarter of
1997. Zurich will own 69.5% of SKI and senior employees of SKI will hold the
remaining 30.5%. SKI will be headquartered in New York City and the chief
executive officer of SKI will be Edmond D. Villani, Scudder's president and
chief executive officer. Mr. Villani will also join Zurich's Corporate Executive
Board. A transition team comprised of representatives from ZKI, Zurich, and
Scudder has been formed to make recommendations regarding combining the
operations of Scudder and ZKI.
With respect to the Kemper Value Fund, Inc., Thomas Sassi and Jonathan Kay
have been co-managers of the Kemper Contrarian Fund since July, 1997. Mr. Sassi
is the lead manager of the Fund. He joined DVA, the investment manager of the
Fund, in August 1996 and serves as managing director and director of research,
in addition to his position as the chief investment officer. He served as
managing director and director of research of DVA from 1990 to 1993 and he was a
consultant with an unaffiliated investment consulting firm and an officer of an
unaffiliated investment banking firm from 1993 to 1996. Mr. Sassi received a
B.B.A. in management and economics and an M.B.A. in Finance from Hofstra
University in New York City, New York. Jonathan Kay joined DVA in 1993 where he
has served as a portfolio manager for institutional accounts. From 1986 to 1993,
Mr. Kay was a financial analyst for an unaffiliated investment management firm.
He received a B.A. in economics from the University of Buffalo and an M.B.A. in
Finance from Bernard M. Baruch College in New York City, New York.
With respect to the Kemper Value Fund, Inc., Thomas H. Forester and Steven
T. Stokes have been the portfolio co-managers of the Kemper Small Cap Value Fund
since July, 1997. Mr. Forester has lead responsibility for the management of the
Fund. He joined DVA, the investment manager for the Small Cap Value Fund, in May
1997. Prior to joining DVA, he served as a senior portfolio manager of an
unaffiliated investment management firm from 1995 to 1997. For the three years
prior to 1995, he was a portfolio manager for another investment management
firm. He received his
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undergraduate degree at the University of Colorado and an M.B.A. in finance from
Northwestern University. He is a chartered financial analyst. Mr. Stokes joined
DVA in April, 1996 and is currently a managing director of DVA. Prior to joining
DVA, he served as a portfolio manager and financial analyst for an unaffiliated
investment management firm from 1986 to 1996. Mr. Stokes received a B.S. degree
in Finance from State University of New York at New Paltz. He is a chartered
financial analyst.
SPECIAL PROMOTION
From August 1, 1997 until September 30, 1997 ("Special Offering Period"),
Zurich Kemper Distributors, Inc. ("ZKDI"), the principal underwriter for the
Funds, intends to reallow the full applicable sales charge with respect to Class
A shares of Kemper Europe Fund purchased during the Special Offering Period (not
including shares acquired at net asset value). ZKDI also intends to pay an
additional commission of .50% with respect to Class B shares of Kemper Europe
Fund purchased during the Special Offering Period not including exchanges or
other transactions for which commissions are not paid.
PURCHASE OF SHARES
Class A shares of a Fund may be purchased at net asset value by persons who
purchase shares of the Fund through ZKDI as part of an automated billing and
wage deduction program administered by RewardsPlus of America for the benefit of
employees of participating employer groups.
August 18, 1997
KMF-1K (8/97)
ZKDI 708014 (LOGO)printed on recycled paper
