<PAGE> 1
Kemper Retirement Fund
Series VI
Annual Report to Shareholders
For the Period Ended
June 30, 1995
Provides a guaranteed return of
investment on the designated
maturity date to investors who
reinvest all dividends and
hold their shares to the maturity date,
and seeks to provide long-term
growth of capital
[KEMPER][MUTUAL FUNDS](LOGO)
<PAGE> 2
DEAR SHAREHOLDER:
We are pleased to provide you with an economic overview and the performance of
your fund for the period ended June 30, 1995. In addition, following the
economic overview is a question and answer interview with your fund's Portfolio
Manager.
----------------------------
PERFORMANCE REVIEW
<TABLE>
<CAPTION>
------------------------------------------------------------
<S> <C>
TOTAL RETURNS*
FROM MAY 1, 1995 TO JUNE 30, 1995
SERIES VI
(UNADJUSTED FOR SALES CHARGE) 2.89%
SERIES VI (ADJUSTED FOR THE
MAXIMUM SALES CHARGE OF 5.00%) -2.22%
</TABLE>
------------------------------------------------------------
Returns are historical and do not represent future performance. Returns and net
asset value fluctuate. Shares are redeemable at current net asset value, which
may be more or less than original cost.
---------------------------------------
GENERAL ECONOMIC OVERVIEW
Investors enjoyed generally positive performance in both the fixed-income and
equity markets in the first six months of 1995. At this midpoint in the year,
the returns of most leading securities markets are significantly higher than
they were at the same time in 1994.
But recently, several events occurred to challenge the markets:
- Early in July, the Federal Reserve Board acknowledged that economic growth had
slowed so much that a recession might now be possible. In response, the
Federal Reserve eased short-term interest rates by a small but symbolic 25
basis points. This action was significant because, since February 1994, the
Fed had been raising interest rates to slow down what was considered high
enough growth to rekindle troublesome inflation.
- Then, midway into July, the stock market took a brief tumble. After a two-day
period of anxiety, the market recovered and finished the month well ahead. But
such a sudden, severe mini-correction served to remind investors that the
current bull market will probably come to an end someday and that some sectors
may be overextended today.
- Finally, the late July release of the gross domestic product (GDP) revealed
that growth in the economy in the second quarter was almost nonexistent. The
economy has not experienced such a low real GDP change (0.5%) in four years.
Proof of the economic slowdown was good news for investors who worry about
runaway growth and its inevitable result, inflation. At the same time, we were
pleased to see economic data that suggest that certain sectors of the economy,
such as housing and foreign trade, are poised for growth in the third and
fourth quarters. These should help provide momentum and keep us clear of a
recession. In fact, we anticipate 2% to 3% real GDP growth for the next few
quarters. Nevertheless, additional action by the Federal Reserve to lower
interest rates would not surprise us.
------------------------------------------------------------
MOST MARKETS ARE HAVING A MUCH BETTER YEAR THAN IN 1994
Data show the 1994 and 1995 six-month comparative total returns for the
domestic and international equity and U.S. and non-U.S. bond markets.
<TABLE>
<CAPTION>
U.S. Non-U.S.
U.S. International Treasury Government
Stocks(1) Stocks(2) Bonds(3) Bonds(4)
<S> <C> <C> <C> <C>
First six months of 1995 20.19% 2.76% 11.19% 20.03%
First six months of 1994 -3.38% 8.92% -4.04% 3.68%
</TABLE>
------------------------------------------------------------
1 Standard & Poor's 500, an unmanaged index of common stocks that is generally
considered representative of the U.S. stock market.
2 Morgan Stanley Capital International EAFE Index, an unmanaged index that is
generally considered a measure of international equities in 15 major world
markets excluding the U.S. and Canada.
3 Salomon Brothers Treasury Index, including Treasury issues with a maturity of
one year or longer.
4 Salomon Brothers World Government, Non-U.S. Governments, Index, including the
performance of leading government bond markets excluding the U.S. (unmanaged).
This information is historical and does not represent future performance of
these asset classes or past or future performance of any Kemper fund. Investors
may not make direct investments in these unmanaged indices.
As we view the remainder of 1995, we believe that the opportunities for common
stock investors will be increasingly concentrated in higher quality investments.
Companies cannot necessarily count on the economy to provide above average
earnings support. Rather, stocks that have proven themselves with a pattern of
consistent earnings are likely to attract investor support. Specifically,
sectors that produce more consistent earnings, such as health care, consumer
nondurables, selected technology and selected capital goods can be expected to
do well. Picking the right sectors to invest in will be the key challenge for
equity investors during the next few quarters.
1
<PAGE> 3
In addition, we look for the fixed-income markets to continue their positive
performance, as they tend to do well during periods of slow growth and low
inflation.
Leading international economies are lagging the U.S. economy. Japan and Germany,
whose economies typically follow U.S. growth, are not as robust as in past
cycles. This phenomenon makes international investing very complex currently.
Moreover, conditions in emerging market countries underline the importance of
careful research and experience in understanding how these markets work.
Nevertheless, the same fundamentals that have driven markets higher in the U.S.
are to be found in many foreign countries currently.
Political leadership also has some bearing on the progress of the economy and
the state of the financial markets. In the months preceding a presidential
election year, it has been common for incumbents to attempt to stimulate growth.
Given our Republican Congress and Democratic President, however, we do not
consider this a foregone conclusion as we move closer to 1996.
With that as an economic backdrop, we encourage you to read the following
detailed report of your fund, including a question-and-answer interview with
your fund's portfolio manager. Thank you for your continued support. We
appreciate the opportunity to serve your investment needs.
Sincerely,
[SIGNATURE]
Stephen B. Timbers
Chief Investment and Executive Officer
July 31, 1995
[PHOTO] Stephen Timbers is Chief Executive Officer and
is also Chief Investment Officer of Kemper
Financial Services, Inc. (KFS). KFS and its
affiliates manage approximately $60 billion in
assets, including $42 billion in retail mutual
funds. Timbers is a graduate of Yale
University and holds an M.B.A. from Harvard
University.
* Total return measures net investment income and capital gain or loss from
portfolio investments, assuming reinvestment of all dividends. During the
periods noted, securities prices fluctuated. For additional information, see
the Prospectus and Statement of Additional Information and the Financial
Highlights at the end of this report.
2
<PAGE> 4
Q&A
A PERFORMANCE REVIEW AND AN INTERVIEW WITH PORTFOLIO MANAGER
TRACY MCCORMICK CHESTER
[Photo of Tracy McCormick Chester]
Tracy McCormick Chester joined Kemper Financial Services, Inc. (KFS) in 1994
and is Portfolio Manager of Kemper Retirement Fund Series VI. Ms. McCormick
Chester received both her B.A. and M.B.A. degrees from Michigan State
University.
Q: DURING THE FIRST SIX MONTHS OF 1995 THE BOND MARKET HAS REBOUNDED AND
WE'VE SEEN THE STOCK MARKET POST A SERIES OF RECORD HIGHS. WHAT
SPARKED THIS RALLY?
A: It became increasingly evident that the Federal Reserve Board's
aggressive interest rate hikes, which created such turmoil in 1994, had
effectively slowed economic growth and reduced the threat of rising
inflation. This was great news for the bond markets, which tend to
perform best in a slow growth, low inflation environment.
Declining interest rates added fuel to the stock market, which was
already rising on the strength of some very good earnings reports.
Technology stocks were particularly strong. Indications that demand
for semiconductors would continue to outpace supply pushed companies
like Intel and Microsoft to excellent gains. That strength helped to
boost the entire sector.
Q: THIS FUND WAS JUST INTRODUCED IN mAY. hOW HAS IT PERFORMED IN ITS FIRST
TWO MONTHS?
A: Since the fund is still relatively small in terms of assets -- seven
million dollars as of June 30 -- we haven't been able to build the
solid, diversified stock portfolio we would like. At this time, about
49% of the fund is invested in zero-coupon Treasuries with the
remainder in short-term instruments, including futures which allow the
fund to participate in market moves.
Q: WHAT IS YOUR STRATEGY IN TERMS OF EQUITY INVESTMENTS FOR THE FUND?
A: As assets increase we will try to build a portfolio similar to that of
the preceding funds in the Series, with a bias toward large blue chip
companies that have strong prospects for long-term appreciation.
Given the substantial gains seen in the market during the first half of
this year, we'll be cautious with our stock purchases for the
near-term. Valuations have run up considerably for many companies,
particularly in the technology sector, and any disappointment in
earnings could be severly punished. Basically, we'll maintain positions
in companies that can sustain earnings growth in a slow growth
environment. Right now, we're looking at defensive positions like life
insurers, pharmaceuticals and health, and selected basic industries.
We're also optimistic about sectors like retail, lodging and
defense/ aerospace that appear to have reached the bottom of their
cycles. We're confident that there are still opportunities out there.
However, research and individual stock selection will be very important.
3
<PAGE> 5
PORTFOLIO OF INVESTMENTS June 30, 1995
(Dollars in thousands)
<TABLE>
<CAPTION>
Principal
Amount Value
------ ------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS-49.3%
------------------------------------------------------------
U.S. Treasury,
zero coupon, 2006
(Cost: $3,501) $7,100 $3,543
------------------------------------------------------------
MONEY MARKET INSTRUMENTS
Yield - 5.22% to 5.98%
Due - July 1995
------------------------------------------------------------
Federal Home Loan Mortgage Corporation 2,700 2,697
------------------------------------------------------------
U.S. Treasury Bill 100 100
------------------------------------------------------------
TOTAL MONEY MARKET INSTRUMENTS-38.9%
(Cost: $2,796) 2,797
------------------------------------------------------------
TOTAL INVESTMENTS-88.2%
(Cost: $6,297) 6,340
------------------------------------------------------------
CASH AND OTHER ASSETS,
LESS LIABILITIES-11.8% 849
------------------------------------------------------------
NET ASSETS-100% $7,189
============================================================
</TABLE>
NOTE TO PORTFOLIO OF INVESTMENTS
Based on the cost of investments of $6,297,000 for federal income tax purposes
at June 30, 1995, the aggregate unrealized appreciation on investments was
$43,000.
REPORT OF INDEPENDENT AUDITORS
THE BOARD OF TRUSTEES AND SHAREHOLDERS
KEMPER TARGET EQUITY FUND--
KEMPER RETIREMENT FUND SERIES VI
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Kemper Target Equity Fund--Kemper Retirement
Fund Series VI as of June 30, 1995 and the related statements of operations,
changes in net assets and the financial highlights for the period from May 1,
1995 (initial public offering) to June 30, 1995. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of investments owned as of June 30, 1995, by
correspondence with the custodian and brokers. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Kemper
Target Equity Fund--Kemper Retirement Fund Series VI at June 30, 1995 and the
results of its operations, the changes in its net assets and the financial
highlights for the period from May 1, 1995 to June 30, 1995 in conformity with
generally accepted accounting principles.
ERNST & YOUNG LLP
Chicago, Illinois
August 11, 1995
4
<PAGE> 6
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1995
(in thousands)
<TABLE>
<S> <C>
ASSETS
------------------------------------------------------
Investments, at value
(Cost: $6,297) $6,340
------------------------------------------------------
Cash 286
------------------------------------------------------
Receivable for Fund shares sold 828
------------------------------------------------------
Total assets 7,454
------------------------------------------------------
LIABILITIES AND NET ASSETS
------------------------------------------------------
Payable for:
Fund shares redeemed 3
------------------------------------------------------
Investments purchased 258
------------------------------------------------------
Management fee 2
------------------------------------------------------
Other 2
------------------------------------------------------
Total liabilities 265
------------------------------------------------------
Net assets applicable to 776 shares
outstanding,
no par value, equivalent to $9.26 per share $7,189
======================================================
ANALYSIS OF NET ASSETS
------------------------------------------------------
Excess of amounts received from issuance of
shares over amounts paid on redemptions of
shares on account of capital $7,140
------------------------------------------------------
Accumulated net realized loss on investments (14)
------------------------------------------------------
Net unrealized appreciation on investments 43
------------------------------------------------------
Undistributed net investment income 20
------------------------------------------------------
Net assets applicable to shares outstanding $7,189
======================================================
THE PRICING OF SHARES
------------------------------------------------------
Net asset value and redemption price per share
($7,189 / 776 shares outstanding) $9.26
------------------------------------------------------
Maximum offering price per share (net asset
value, plus 5.26% of net asset value or
5.00% of offering price) $9.75
------------------------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
STATEMENT OF OPERATIONS
For the period from May 1, 1995 (initial public offering) to June 30, 1995
(in thousands)
<TABLE>
<S> <C>
INTEREST INCOME $ 26
------------------------------------------------------
EXPENSES
------------------------------------------------------
Management fee 3
------------------------------------------------------
Administrative services fee 1
------------------------------------------------------
Trustees' fees and other 2
------------------------------------------------------
Total expenses 6
------------------------------------------------------
Net investment income 20
------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
------------------------------------------------------
Net realized loss from futures transactions (14)
------------------------------------------------------
Change in net unrealized appreciation on
investments 43
------------------------------------------------------
Net gain on investments 29
------------------------------------------------------
Net increase in net assets resulting from
operations $ 49
======================================================
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
For the period from May 1, 1995 (initial public offering) to June 30, 1995
(in thousands)
<TABLE>
<S> <C>
OPERATIONS
------------------------------------------------------
Net investment income $ 20
------------------------------------------------------
Net realized loss (14)
------------------------------------------------------
Change in net unrealized appreciation 43
------------------------------------------------------
Net increase in net assets resulting from
operations 49
------------------------------------------------------
Net increase from capital share transactions 7,040
------------------------------------------------------
Total increase in net assets 7,089
------------------------------------------------------
NET ASSETS
------------------------------------------------------
Beginning of period 100
------------------------------------------------------
End of period (including undistributed net
investment income of $20 at June 30, 1995) $7,189
======================================================
</TABLE>
5
<PAGE> 7
NOTES TO FINANCIAL STATEMENTS
For the period from May 1, 1995 (initial public offering) to June 30, 1995
1. DESCRIPTION OF THE FUND
Kemper Retirement Fund Series VI (the Fund) is a series of Kemper Target Equity
Fund (the Trust), an open-end, management investment company, organized as a
business trust under the laws of Massachusetts. The objectives of the Fund are
to provide a guaranteed return of investment on the Maturity Date (May 15, 2006)
to investors who reinvest all dividends and hold their shares to the Maturity
Date, and to provide long-term growth of capital. The assurance that investors
who reinvest all dividends and hold their shares until the Maturity Date will
receive at least their original investment on the Maturity Date is provided by
the principal amount of the zero coupon U.S. Treasury obligations in the Fund's
portfolio, as well as by a guarantee from Kemper Financial Services, Inc. (KFS),
the Fund's investment manager.
2. SIGNIFICANT ACCOUNTING POLICIES
INVESTMENT VALUATION
Investments are stated at value. Portfolio securities that are traded on a
domestic securities exchange or securities listed on the NASDAQ National Market
are valued at the last sale price on the exchange or market where primarily
traded or listed or, if there is no recent sale, at the last current bid
quotation. Portfolio securities that are primarily traded on foreign securities
exchanges are generally valued at the preceding closing values of such
securities on their respective exchanges where primarily traded. Securities not
so traded or listed are valued at the last current bid quotation if market
quotations are available. Fixed income securities are valued by using market
quotations, or independent pricing services that use prices provided by market
makers or estimates of market values obtained from yield data relating to
instruments or securities with similar characteristics. Options are valued at
the last sale price unless the bid price is higher or the asked price is lower,
in which event such bid or asked price is used. Financial futures and options
thereon are valued at the settlement price established each day by the board of
trade or exchange on which they are traded. Forward foreign currency contracts
are valued at the forward rates prevailing on the day of valuation. Other
securities and assets are valued at fair value as determined in good faith by
the Board of Trustees.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on the trade date (date the order to
buy or sell is executed). Dividend income is recorded on the ex-dividend date,
and interest income is recorded on the accrual basis. Interest income includes
premium and discount amortization on money market instruments; it also includes
original issue and market discount amortization on long-term fixed income
securities. Realized gains and losses from investment transactions are reported
on an identified cost basis. Gains and losses on premiums from expired options
are recognized on date of expiration. Realized and unrealized gains and losses
on financial futures, options and forward foreign currency contracts are
included in net realized and unrealized gain (loss) on investments, as
appropriate.
EXPENSES
Expenses arising in connection with a series of the Trust are allocated to that
series. Other Trust expenses are allocated among the series in proportion to
their relative net assets.
FUND SHARE VALUATION
Fund shares are sold to the public during a limited offering period, which
currently is expected to last until May, 1996 (Offering Period). The Offering
Period may be extended or shortened at the option of the Fund. Fund shares are
redeemed on a continuous basis. Fund shares are sold and redeemed at net asset
value (plus a commission on most sales). On each day the New York Stock Exchange
is open for trading, the net asset value per share is determined as of the
earlier of 3:00 p.m. Chicago time or the close of the Exchange by dividing the
total value of the Fund's investments and other assets, less liabilities, by the
number of shares outstanding.
FEDERAL INCOME TAXES AND DIVIDENDS TO SHAREHOLDERS
The Fund has complied with the special provisions of the Internal Revenue Code
available to investment companies and therefore no federal income tax provision
is required. The accumulated net realized loss on sales of investments for
federal income tax purposes at June 30, 1995, amounting to approximately
$14,000, is available to offset future taxable gains. If not applied, the loss
carryover expires in 2003.
Dividends payable to its shareholders are recorded by the Fund on the
ex-dividend date.
Distributions are determined in accordance with income tax principles which may
treat certain transactions differently from generally accepted accounting
principles.
3. TRANSACTIONS WITH AFFILIATES
MANAGEMENT AGREEMENT
The Trust has a management agreement with KFS and the Fund pays a management fee
at an annual rate of .50% of average daily net assets. The Fund incurred a
management fee of $3,000 for the period ended June 30, 1995.
UNDERWRITING AGREEMENT
The Trust has an underwriting agreement with Kemper Distributors, Inc. (KDI). As
principal underwriter for the Fund, KDI retained commissions of $35,000 for the
6
<PAGE> 8
period ended June 30, 1995 after allowing $300,000 as commissions to firms of
which $37,000 was paid to firms affiliated with KDI.
ADMINISTRATIVE SERVICES AGREEMENT
The Trust has an administrative services agreement with KDI. For providing
information and administrative services to shareholders, the Fund pays KDI a fee
at an annual rate of up to .25% of average daily net assets. KDI in turn has
various agreements with financial services firms that provide these services and
pays these firms based on assets of Fund accounts the firms service. For the
period ended June 30, 1995, the Fund incurred an administrative services fee of
$1,000, all of which KDI paid to firms.
SHAREHOLDER SERVICES AGREEMENT
Pursuant to a services agreement with the Fund's custodian and transfer agent,
Kemper Service Company (KSvC), an affiliate of KFS, is the shareholder service
agent of the Fund. For the period ended June 30, 1995, the custodian remitted
shareholder service fees of $7,000 to KSvC.
OFFICERS AND TRUSTEES
Certain officers or trustees of the Trust are also officers or directors of KFS.
During the period ended June 30, 1995, the Trust made no payments to its
officers and the Fund incurred trustees' fees of $1,000 to independent trustees.
4. INVESTMENT TRANSACTIONS
For the period ended June 30, 1995, investment transactions (excluding
short-term instruments) are as follows (in thousands):
<TABLE>
<S> <C>
Purchases $3,501
--------------------------------------------------------------
Proceeds from sales --
--------------------------------------------------------------
</TABLE>
5. CAPITAL SHARE TRANSACTIONS
The following table summarizes the activity in capital shares of the Fund for
the period ended June 30, 1995 (in thousands):
<TABLE>
<CAPTION>
Shares Amount
------ ------
<S> <C> <C>
Shares sold 770 $7,084
-------------------------------------------------------------
Less shares redeemed 5 44
-------------------------------------------------------------
Net increase from capital share transactions 765 $7,040
=============================================================
</TABLE>
6. FINANCIAL FUTURES CONTRACTS
In order to participate in the equity market during the initial period of the
Fund's operations, the Fund has entered into exchange traded financial futures
contracts described below. The Fund bears the market risk that arises from
changes in the value of these financial instruments.
At the time the Fund enters into a futures contract, it is required to make a
margin deposit with its custodian of a specified amount of cash or eligible
securities. Subsequently, gain or loss is recognized and payments are made on a
daily basis between the Fund and the broker as the market price of the futures
contract fluctuates. At June 30, 1995, the market value of investments pledged
by the Fund to cover margin requirements for open futures positions was
$100,000. At June 30, 1995, the Fund had outstanding financial futures contracts
as follows:
<TABLE>
<CAPTION>
Contract Loss at
Type Amount Position Expiration 6/30/95
------------------------------------------------------------------
<S> <C> <C> <C> <C>
S&P 500 Index $2,451,000 Long Sept. 95 $14,000
------------------------------------------------------------------
</TABLE>
7
<PAGE> 9
FINANCIAL HIGHLIGHTS
For the period from May 1, 1995 (initial public offering) to June 30, 1995
<TABLE>
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 9.00
-------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .06
-------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain .20
-------------------------------------------------------------------------------------------------------------------------------
Total from investment operations .26
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.26
===============================================================================================================================
TOTAL RETURN (%): 2.89
===============================================================================================================================
RATIOS TO AVERAGE NET ASSETS (%):
Expenses 1.09
-------------------------------------------------------------------------------------------------------------------------------
Net investment income 3.91
===============================================================================================================================
SUPPLEMENTAL DATA:
Net assets at end of period (in thousands) $7,189
-------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (%) --
===============================================================================================================================
</TABLE>
NOTE: Ratios have been determined on an annualized basis. Total return is not
annualized and does not reflect the effect of sales charges. Per share data was
determined based on average shares outstanding.
8
<PAGE> 10
[KEMPER][MUTUAL FUNDS](LOGO)
KEMPER FINANCIAL SERVICES, INC.
120 South LaSalle Street
Chicago, IL 60603
KEMPER TARGET EQUITY FUND--
KEMPER RETIREMENT FUND SERIES VI
<TABLE>
<CAPTION>
<S> <C>
Trustees Officers
STEPHEN B. TIMBERS JOHN E. PETERS
President and Trustee Vice President
ARTHUR R. GOTTSCHALK TRACY M. CHESTER
Trustee Vice President
FREDERICK T. KELSEY C. BETH COTNER
Trustee Vice President
DAVID B. MATHIS DENNIS H. FERRO
Trustee Vice President
JOHN B. TINGLEFF PHILIP J. COLLORA
Trustee Vice President and
JOHN G. WEITHERS Secretary
Trustee CHARLES F. CUSTER
Vice President and
Assistant Secretary
JEROME L. DUFFY
Treasurer
ELIZABETH C. WERTH
Assistant Secretary
-----------------------------------------------------------
Legal Counsel Custodian and Transfer Agent
VEDDER, PRICE, KAUFMAN INVESTORS FIDUCIARY
& KAMMHOLZ TRUST COMPANY
222 North LaSalle Street 127 West 10th Street
Chicago, IL 60601 Kansas City, MO 64105
Shareholder Service Agent Independent Auditors
KEMPER SERVICE COMPANY ERNST & YOUNG LLP
P.O. Box 419557 233 South Wacker Drive
Kansas City, MO 64141 Chicago, IL 60606
800-621-1048
</TABLE>
Investment Manager
KEMPER FINANCIAL SERVICES, INC.
Principal Underwriter
KEMPER DISTRIBUTORS, INC.
120 South LaSalle Street
Chicago, IL 60603
(LOGO)
Printed on recycled paper.
This report is not to be distributed unless preceded 241710
KRF6-2 (8/95) or accompanied by a prospectus. Printed in the U.S.A.
