Kemper Value Fund
Supplement to Prospectus
Dated February 1, 1999
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The following text replaces the section entitled "Principal Risk Factors --
Value Investing" on page 3 of the fund's prospectus:
Value Investing. The determination that a stock is undervalued is subjective;
the market may not agree, and the stock's price may not rise to what the
investment manager believes is its full value. It may even decrease in value.
The following text replaces the first two paragraphs under the section entitled
"About the Funds -- Investment objective and strategies" on page 32 of the
fund's prospectus:
Value Fund seeks long-term growth of capital through investment in undervalued
equity securities. Except as otherwise indicated, the fund's investment
objective and policies may be changed without a vote of shareholders.
The fund invests primarily in the stock of larger, established U.S. companies
that the investment manager believes are undervalued in the marketplace.
The following text replaces the section entitled "About the Fund -- Principal
strategies and investments" on page 35 of the fund's prospectus:
The fund invests at least 80% of its assets in equity securities, primarily
common stocks of larger established domestic companies with market
capitalizations of at least $1 billion. The investment manager uses in-depth
fundamental and quantitative research to identify companies that are currently
undervalued in relation to future business prospects.
The investment manager uses a proprietary computer model to rank the 1000 stocks
that comprise the Russell 1000 Index -- a widely used large stock universe --
based on their relative valuations. A company's valuation is measured by
comparing its stock price to its business fundamentals, such as sales, earnings
or book value. The investment manager focuses on the stocks with the lowest
valuations, which are further analyzed and rated using fundamental research,
such as an examination of a company's historical earnings patterns, sales growth
and profit margins in order to assess the likelihood of a rebound in the stock
price if a company's business fundamentals improve or market conditions change.
In an effort to manage the risk exposure of the fund, the investment manager
then assesses the expected volatility of the fund and the potential impact the
most promising of the stocks may have on the fund's risk level. Based on this
information, the investment manager selects approximately
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60-90 stocks that it believes offer the greatest potential for attractive
long-term gains.
The fund typically sells a stock when its price is no longer considered to be a
value, it is less likely to benefit from the current market or economic
environment, it experiences deteriorating fundamentals or its price performance
falls short of the investment manager's expectations.
For temporary defensive purposes, the fund may invest without limit in cash and
cash equivalents. Because this defensive policy differs from the fund's
investment objective, the fund may not achieve its goals during a defensive
period.
While not principal investments or strategies of the fund, the fund may utilize
other investments and investment techniques that may impact fund performance,
including options, futures and other strategic transactions.
More information about these and other investments and strategies of the fund is
provided in the Statement of Additional Information. Of course, there can be no
guarantee that, by following this investment strategy, the fund will achieve its
objective.
The section entitled "About the Fund -- Additional principal risks -- Foreign
investing risk" on page 35 of the fund's prospectus is deleted.
The following information replaces the disclosure concerning the fund's Lead
Portfolio Manager in the "Portfolio management" section on page 41 of the fund's
prospectus:
Lois Friedman Roman is the Lead Portfolio Manager for the Kemper Value Fund. Ms.
Roman joined the team of the fund in 1999, and joined Scudder Kemper in 1994 as
an equity analyst. Prior to joining the Adviser, she was an analyst for an
unaffiliated investment management firm for three years. She has ten years of
investment experience as an equity analyst.
The following information replaces the disclosure concerning the fund's Manager
in the "Portfolio management" section on page 41 of the fund's prospectus:
Kathleen T. Millard is a Portfolio Manager for the Kemper Value Fund. Ms.
Millard joined the team of the fund in 1999, and joined Scudder Kemper in 1991
as a portfolio manager. She has 15 years of investment experience and has been a
portfolio manager since 1986.
July 15, 1999
