<PAGE>
Kemper International Bond Fund
Semiannual Report to Shareholders
June 30, 1995
<PAGE>
Kemper International Bond Fund
- -------------------------------------------------
<TABLE>
<CAPTION>
Statement of Net Assets
June 30, 1995
=================================================
<S> <C>
Assets
- -------------------------------------------------
Federal Home Loan Mortgage Corporation
5.88%, due 7/05/1995, $140,000 par
(Cost: $139,909) $139,916
- -------------------------------------------------
Cash 2,613
- -------------------------------------------------
Interest receivable 38,154
- -------------------------------------------------
Total assets 180,683
- -------------------------------------------------
Liabilities and Net Assets
- -------------------------------------------------
Payable for:
Investments purchased 73,819
- -------------------------------------------------
Other 2,142
- -------------------------------------------------
Total liabilities 75,961
- -------------------------------------------------
Net assets applicable to 11,111
shares outstanding, no par value,
equivalent to $9.42 per share $104,722
=================================================
Analysis of Net Assets
- -------------------------------------------------
Accumulated net realized gain on
investments and foreign currency
transactions 97,918
- -------------------------------------------------
Unrealized appreciation of
investments and foreign currency
transactions 402
- -------------------------------------------------
Undistributed net investment income 6,402
- -------------------------------------------------
Net assets applicable to shares
outstanding $104,722
=================================================
The Pricing of Shares
- -------------------------------------------------
Net asset value, offering and
redemption price per share
($104,722/11,111 shares outstanding) $9.42
=================================================
</TABLE>
See accompanying Notes to Financial Statements.
(1)
<PAGE>
Kemper International Bond Fund
- --------------------------------------------
<TABLE>
<CAPTION>
Statement of Operations
For the Period from February 1, 1995
(initial public offering) to June 30, 1995
- --------------------------------------------
<S> <C>
Interest income $107,119
- --------------------------------------------
Expenses
- --------------------------------------------
Management fee 10,326
- --------------------------------------------
Other 2,673
- --------------------------------------------
Total expenses 12,999
- --------------------------------------------
Net investment income 94,120
- --------------------------------------------
Net realized and unrealized gain
on investments
- --------------------------------------------
Net realized gain on
investments and foreign
currency transactions 134,745
- --------------------------------------------
Net change in unrealized
appreciation of investments
and foreign currency
transactions 402
- --------------------------------------------
Net gain on investments 135,147
- --------------------------------------------
Net increase in assets resulting
from operations $229,267
============================================
- --------------------------------------------
Statement of Changes in Net Assets
For the Period from February 1, 1995
(initial public offering) to June 30, 1995
- --------------------------------------------
Operations
- --------------------------------------------
Net investment income $ 94,120
- --------------------------------------------
Net realized gain on
investments and foreign
currency transactions 134,745
- --------------------------------------------
Net change in unrealized
appreciation 402
- --------------------------------------------
Net increase in net assets
resulting from operations 229,267
- --------------------------------------------
Net equalization charges (87,718)
- --------------------------------------------
Net decrease from capital
share transactions (136,827)
- --------------------------------------------
Total increase in net assets 4,722
- --------------------------------------------
Net assets
- --------------------------------------------
Beginning of period 100,000
- --------------------------------------------
End of period (including
undistributed net investment
income of $6,402) $ 104,722
============================================
</TABLE>
See accompanying Notes to Financial Statements.
(2)
<PAGE>
Kemper International Bond Fund
- --------------------------------------------------------------------------
Notes to Financial Statements
===========================================================================
1. Significant accounting policies
Investment valuation
Investments are stated at value. 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. Portfolio securities
that are traded on a domestic securities exchange are valued at the last sale
price on the exchange where primarily traded 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.
Forward foreign currency contracts and foreign currencies are valued at the
forward and current exchange rates, respectively, 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.
Currency translation
The books and records of the Fund are maintained in U.S. dollars. All assets and
liabilities initially expressed in foreign currency values are converted into
U.S. dollar values at the mean between the bid and offered quotations of such
currencies against U.S. dollars as last quoted by a recognized dealer. If such
quotations are not readily available, the rate of exchange is determined in good
faith by the Board of Trustees.
Income and expenses and purchases and sales of investments are translated into
U.S. dollars at the rate of exchange prevailing on the respective dates of such
transactions. The Fund includes that portion of the results of operations
resulting from changes in foreign exchange rates with net realized and
unrealized gain or loss from investments and foreign currency transactions, as
appropriate.
Investment transactions and investment income
Investment transactions are accounted for on the trade date (date the order to
buy or sell is executed). Interest income is recorded on the accrual basis; it
includes premium and discount amortization on money market instruments and
discount amortization on long-term fixed income securities. Realized gains and
losses from investment transactions are reported on an identified cost basis.
Fund share valuation
Fund shares are sold and redeemed on a continuous basis at net asset value. 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 net assets by the number of outstanding shares.
Because of the need to obtain prices as of the close of trading on various
exchanges throughout the world, the calculation of net asset value does not take
place contemporaneously with the determination of the prices of the Fund's
foreign securities.
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.
Distributions to shareholders are determined in accordance with income tax
principles, which may treat certain transactions different than generally
accepted accounting principles.
(3)
<PAGE>
Kemper International Bond Fund
- -------------------------------------------------------------------------------
===============================================================================
Equalization accounting
A portion of proceeds from sales and cost of redemptions of Fund shares is
credited or charged to undistributed net investment income so that income per
share available for distribution is not affected by sales or redemptions of
shares.
2. Transactions with affiliates
Management agreement
The Fund has a management agreement with Kemper Financial Services, Inc. (KFS),
and pays a management fee at an annual rate of .75% of the first $250 million of
average daily net assets declining gradually to .62% of average daily net assets
in excess of $12.5 billion. For the period ended June 30, 1995, the Fund
incurred a management fee of $10,326.
Officers and Trustees
Certain officers or trustees of the Fund are also officers or directors of KFS.
During the period ended June 30, 1995, the Fund made no direct payments to its
officers or independent trustees.
3. Investment transactions
For the period ended June 30, 1995, investment transactions (excluding short-
term instruments) are as follows:
Purchases $9,238,351
Proceeds from sales 9,380,468
4. Capital share transactions
The following table summarizes the activity in capital shares of the Fund:
<TABLE>
<CAPTION>
Period ended
June 30, 1995
-------------
Shares Amount
------ ------
<S> <C> <C>
Shares sold 770,926 $ 7,000,000
- -----------------------------------------------------------------
Shares redeemed (770,926) (7,136,827)
- -----------------------------------------------------------------
Net decrease from capital
share transactions $ (136,827)
=================================================================
</TABLE>
(4)
<PAGE>
Kemper International Bond Fund
- -----------------------------------------------------------------------
<TABLE>
<CAPTION>
Financial Highlights
For the period from February 1, 1995 (initial public
offering) to June 30, 1995
<S> <C>
=======================================================================
- -----------------------------------------------------------------------
Per Share Operating Performance:
Net asset value, beginning of period $9.00
- -----------------------------------------------------------------------
Net investment income .02
- -----------------------------------------------------------------------
Net realized and unrealized gain on investments
and foreign currency transactions .40
- -----------------------------------------------------------------------
Net asset value, end of period $9.42
=======================================================================
Total Return (%): 4.67
=======================================================================
Ratios to Average Net Assets (%):
Expenses .94
- -----------------------------------------------------------------------
Net investment income 6.87
=======================================================================
Supplemental Data:
Net assets at end of period $104,722
- -----------------------------------------------------------------------
Portfolio Turnover Rate (%) 60
=======================================================================
Note:
Ratios have been determined on an annualized basis while total return is
not annualized.
========================================================================
</TABLE>
(5)
