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KEMPER INTERNATIONAL BOND FUND
SUPPLEMENT TO PROSPECTUS
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
Fund's investment management agreement with ZKI under the Investment Company Act
of 1940, it is anticipated that ZKI would seek approval of a new agreement by
the Fund's board 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.
July 30, 1997
KIBF-1B (7/97) (LOGO)printed on recycled paper
