KEMPER GLOBAL AND INTERNATIONAL FUNDS
Kemper New Europe Fund, Inc.
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Supplement to Statement of Additional Information
Dated September 3, 1999
The following text replaces the last paragraph in the section entitled
"Performance" on page 25 in the currently effective Statement of Additional
Information:
The Fund converted to open-end status and combined, as the surviving entity,
with the Kemper Europe Fund, on September 3, 1999 (the "Reorganization"). The
Fund's former closed-end share class was renamed Class M shares upon the
Reorganization. The figures below are for the Class M shares and show
performance information prior to the Reorganization for Class M shares for
periods ended December 31, 1998. Class A, B and C shares are newly offered.
Comparative information with respect to the MSCI Index is also included. There
are differences and similarities between the investments which the Fund may
purchase and the investments measured by the MSCI Index. The net asset value and
returns of the Fund will fluctuate. No adjustment has been made for taxes
payable on dividends. The periods indicated were ones of fluctuating securities
prices and interest rates.
The following text supplements the section entitled "Performance" in the
currently effective Statement of Additional Information:
The presentation of the Fund's Class A, B and C shares' average annual total
returns reflects the performance of the Class M shares prior to September 3,
1999, restated to reflect the current applicable sales charges (that is, the
maximum 5.75% sales charge for Class A shares or the deferred sales charge in
effect at the applicable period for Class B shares or Class C shares). For
periods prior to September 3, 1999, the Class B and Class C shares' average
annual total returns have also been restated (lowered) to reflect an estimate of
the difference in expense structure between share classes (which are higher).
To restate the performance of the Class B and C shares, a one-time ratio was
created to recalculate the performance of the Class M shares and derive
performance for the Class B and C shares. The ratio was created by taking the
monthly returns of the open-end Kemper Europe Fund's Class B and C shares and
dividing by the Kemper Europe Fund's Class A shares' performance over a 36-month
period. This ratio was then averaged over the 36 months, resulting in the ratio
used to restate performance. This ratio was then multiplied by the Class M
shares' performance to create estimated performance for the Class B and C
shares.
October 21, 1999
KGIF-13C
